Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 19, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | MARKEL CORP | |
Entity Central Index Key | 1,096,343 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 13,943,520 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Fixed maturities (amortized cost of $9,702,096 in 2017 and $9,591,734 in 2016) | $ 10,006,519 | $ 9,891,510 |
Equity securities (cost of $2,555,488 in 2017 and $2,481,448 in 2016) | 5,038,933 | 4,745,841 |
Short-term investments (estimated fair value approximates cost) | 2,178,035 | 2,336,151 |
Total Investments | 17,223,487 | 16,973,502 |
Cash and cash equivalents | 1,852,735 | 1,738,747 |
Restricted cash and cash equivalents | 261,956 | 346,417 |
Receivables | 1,429,602 | 1,241,649 |
Reinsurance recoverable on unpaid losses | 1,949,278 | 2,006,945 |
Reinsurance recoverable on paid losses | 60,479 | 64,892 |
Deferred policy acquisition costs | 470,788 | 392,410 |
Prepaid reinsurance premiums | 332,385 | 299,923 |
Goodwill | 1,142,535 | 1,142,248 |
Intangible assets | 711,999 | 722,542 |
Other assets | 965,435 | 946,024 |
Total Assets | 26,400,679 | 25,875,299 |
LIABILITIES AND EQUITY | ||
Unpaid losses and loss adjustment expenses | 10,139,678 | 10,115,662 |
Life and annuity benefits | 1,038,325 | 1,049,654 |
Unearned premiums | 2,576,636 | 2,263,838 |
Payables to insurance and reinsurance companies | 242,333 | 231,327 |
Senior long-term debt and other debt (estimated fair value of $2,755,000 in 2017 and $2,721,000 in 2016) | 2,581,605 | 2,574,529 |
Other liabilities | 1,082,917 | 1,099,200 |
Total Liabilities | 17,661,494 | 17,334,210 |
Redeemable noncontrolling interests | 87,935 | 73,678 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock | 3,376,037 | 3,368,666 |
Retained earnings | 3,557,927 | 3,526,395 |
Accumulated other comprehensive income | 1,719,236 | 1,565,866 |
Total Shareholders' Equity | 8,653,200 | 8,460,927 |
Noncontrolling interests | (1,950) | 6,484 |
Total Equity | 8,651,250 | 8,467,411 |
Total Liabilities and Equity | $ 26,400,679 | $ 25,875,299 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 9,702,096 | $ 9,591,734 |
Equity securities, cost | 2,555,488 | 2,481,448 |
Senior long-term debt and other debt, estimated fair value | $ 2,755,000 | $ 2,721,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income And Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
OPERATING REVENUES | ||
Earned premiums | $ 982,602 | $ 957,686 |
Net investment income | 100,368 | 91,294 |
Other-than-temporary impairment losses | (3,213) | (8,405) |
Net realized investment gains, excluding other-than-temporary impairment losses | 24,078 | 29,584 |
Net realized investment gains | 20,865 | 21,179 |
Other revenues | 307,916 | 306,023 |
Total Operating Revenues | 1,411,751 | 1,376,182 |
OPERATING EXPENSES | ||
Losses and loss adjustment expenses | 611,719 | 473,964 |
Underwriting, acquisition and insurance expenses | 373,231 | 364,688 |
Amortization of intangible assets | 16,770 | 17,260 |
Other expenses | 282,585 | 275,093 |
Total Operating Expenses | 1,284,305 | 1,131,005 |
Operating Income | 127,446 | 245,177 |
Interest expense | 33,402 | 30,841 |
Income Before Income Taxes | 94,044 | 214,336 |
Income tax expense | 23,004 | 50,690 |
Net Income | 71,040 | 163,646 |
Net income attributable to noncontrolling interests | 1,171 | 3,276 |
Net Income to Shareholders | 69,869 | 160,370 |
OTHER COMPREHENSIVE INCOME | ||
Net holding gains arising during the period | 160,280 | 238,890 |
Change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period | 0 | (67) |
Reclassification adjustments for net gains included in net income | (9,169) | (12,983) |
Change in net unrealized gains on investments, net of taxes | 151,111 | 225,840 |
Change in foreign currency translation adjustments, net of taxes | 1,545 | 10,329 |
Change in net actuarial pension loss, net of taxes | 716 | 463 |
Total Other Comprehensive Income | 153,372 | 236,632 |
Comprehensive Income | 224,412 | 400,278 |
Comprehensive income attributable to noncontrolling interests | 1,173 | 3,284 |
Comprehensive Income to Shareholders | $ 223,239 | $ 396,994 |
NET INCOME PER SHARE | ||
Basic (in dollars per share) | $ 3.91 | $ 11.21 |
Diluted (in dollars per share) | $ 3.90 | $ 11.15 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Equity - USD ($) shares in Thousands, $ in Thousands | 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] |
Balance at Dec. 31, 2015 | $ 7,840,609 | $ 7,834,150 | $ 3,342,357 | $ 3,137,285 | $ 1,354,508 | $ 6,459 | ||
Balance, shares at Dec. 31, 2015 | 13,959 | |||||||
Balance, redeemable noncontrolling interests at Dec. 31, 2015 | $ 62,958 | |||||||
Net income (loss) | $ 163,646 | 161,403 | 160,370 | 160,370 | 0 | 1,033 | 2,243 | |
Other comprehensive income | 236,632 | 236,624 | 236,624 | 0 | 236,624 | 0 | 8 | |
Comprehensive Income | 400,278 | 398,027 | 396,994 | 1,033 | 2,251 | |||
Issuance of common stock | 3,033 | 3,033 | $ 3,033 | 0 | 0 | 0 | 0 | |
Issuance of common stock, shares | 10 | |||||||
Repurchase of common stock | (720) | (720) | $ 0 | (720) | 0 | 0 | 0 | |
Repurchase of common stock, shares | (1) | |||||||
Restricted stock units expensed | 7,956 | 7,956 | $ 7,956 | 0 | 0 | 0 | 0 | |
Restricted stock units expensed, shares | 0 | |||||||
Adjustment of redeemable noncontrolling interests | (3,452) | (3,452) | $ 0 | (3,452) | 0 | 0 | 3,452 | |
Adjustment of redeemable noncontrolling interests, shares | 0 | |||||||
Other | 1,110 | 1,155 | $ 1,271 | (116) | 0 | (45) | (993) | |
Other, shares | 0 | |||||||
Balance at Mar. 31, 2016 | 8,246,563 | 8,239,116 | $ 3,354,617 | 3,293,367 | 1,591,132 | 7,447 | ||
Balance, shares at Mar. 31, 2016 | 13,968 | |||||||
Balance, redeemable noncontrolling interests at Mar. 31, 2016 | 67,668 | |||||||
Balance at Dec. 31, 2016 | 8,467,411 | 8,467,411 | 8,460,927 | $ 3,368,666 | 3,526,395 | 1,565,866 | 6,484 | |
Balance, shares at Dec. 31, 2016 | 13,955 | |||||||
Balance, redeemable noncontrolling interests at Dec. 31, 2016 | 73,678 | 73,678 | ||||||
Net income (loss) | 71,040 | 69,585 | 69,869 | 69,869 | 0 | (284) | 1,455 | |
Other comprehensive income | 153,372 | 153,370 | 153,370 | 0 | 153,370 | 0 | 2 | |
Comprehensive Income | 224,412 | 222,955 | 223,239 | (284) | 1,457 | |||
Issuance of common stock | 359 | 359 | $ 359 | 0 | 0 | 0 | 0 | |
Issuance of common stock, shares | 19 | |||||||
Repurchase of common stock | (23,512) | (23,512) | $ 0 | (23,512) | 0 | 0 | 0 | |
Repurchase of common stock, shares | (24) | |||||||
Restricted stock units expensed | 7,890 | 7,890 | $ 7,890 | 0 | 0 | 0 | 0 | |
Restricted stock units expensed, shares | 0 | |||||||
Adjustment of redeemable noncontrolling interests | (15,143) | (15,143) | $ 0 | (15,143) | 0 | 0 | 15,143 | |
Adjustment of redeemable noncontrolling interests, shares | 0 | |||||||
Purchase of noncontrolling interest | (8,970) | (861) | $ (861) | 0 | 0 | (8,109) | 0 | |
Purchase of noncontrolling interest, shares | 0 | |||||||
Other | 260 | 301 | $ (17) | 318 | 0 | (41) | (2,343) | |
Other, shares | 0 | |||||||
Balance at Mar. 31, 2017 | 8,651,250 | $ 8,651,250 | $ 8,653,200 | $ 3,376,037 | $ 3,557,927 | $ 1,719,236 | $ (1,950) | |
Balance, shares at Mar. 31, 2017 | 13,950 | |||||||
Balance, redeemable noncontrolling interests at Mar. 31, 2017 | $ 87,935 | $ 87,935 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
OPERATING ACTIVITIES | ||
Net income | $ 71,040 | $ 163,646 |
Adjustments to reconcile net income to net cash provided (used) by operating activities | (59,094) | (268,215) |
Net Cash Provided (Used) By Operating Activities | 11,946 | (104,569) |
INVESTING ACTIVITIES | ||
Proceeds from sales of fixed maturities and equity securities | 89,287 | 100,668 |
Proceeds from maturities, calls and prepayments of fixed maturities | 401,875 | 216,455 |
Cost of fixed maturities and equity securities purchased | (592,707) | (862,646) |
Net change in short-term investments | 162,324 | 322,887 |
Proceeds from sales of equity method investments | 2,407 | 5,480 |
Additions to property and equipment | (15,864) | (14,900) |
Acquisitions, net of cash acquired | (3,810) | (4,600) |
Other | (5,855) | (193) |
Net Cash Provided (Used) By Investing Activities | 37,657 | (236,849) |
FINANCING ACTIVITIES | ||
Additions to senior long-term debt and other debt | 19,302 | 16,323 |
Repayment of senior long-term debt and other debt | (9,917) | (16,305) |
Repurchases of common stock | (23,512) | (720) |
Issuance of common stock | 359 | 3,033 |
Purchase of noncontrolling interests | (8,970) | 0 |
Distributions to noncontrolling interests | (2,341) | (1,038) |
Other | (1,463) | (10,095) |
Net Cash Used By Financing Activities | (26,542) | (8,802) |
Effect of foreign currency rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 6,466 | 18,711 |
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 29,527 | (331,509) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 2,085,164 | 3,070,141 |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS AT END OF PERIOD | $ 2,114,691 | $ 2,738,632 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation 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 and programs. 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. The consolidated balance sheet as of March 31, 2017 and the related consolidated statements of income and comprehensive income, changes in equity and cash flows for the three months ended March 31, 2017 and 2016 are unaudited. In the opinion of management, all adjustments necessary for fair presentation of such consolidated financial statements have been included. Such adjustments consist only of normal, recurring items. Interim results are not necessarily indicative of results of operations for the entire year. The consolidated balance sheet as of December 31, 2016 was derived from Markel Corporation's audited annual consolidated financial statements. 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 consolidated subsidiaries, as well as any variable interest entities (VIEs) that meet the requirements for consolidation (the Company). All significant intercompany balances and transactions have been eliminated in consolidation. 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. 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. Actual results may differ materially from the estimates and assumptions used in preparing the consolidated financial statements. The consolidated financial statements and notes are presented as permitted by Form 10-Q and do not contain certain information included in the Company's annual consolidated financial statements and notes. Readers are urged to review the Company's 2016 Annual Report on Form 10-K for a more complete description of the Company's business and accounting policies. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Effective for the year ended December 31, 2016, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2015-09, Financial Services-Insurance (Topic 944): Disclosures about Short-Duration Contracts , which requires significant new disclosures for insurers relating to short-duration insurance contract claims and the unpaid claims liability rollforward for long and short-duration contracts on both an annual and interim basis. Interim period disclosures required by ASU No. 2015-09 include a tabular rollforward and related qualitative information for the liability for unpaid losses and loss adjustment expenses. The interim disclosures are required beginning in the first quarter of 2017 and have been included in note 7. Effective January 1, 2017, the Company adopted ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . The ASU changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value and eliminates the requirement to consider replacement cost or net realizable value less an approximately normal profit margin when measuring inventory. The provisions of ASU No. 2015-11 were adopted on a prospective basis and adoption of this ASU did not have an impact on the Company's financial position, results of operations or cash flows. Effective January 1, 2017, the Company adopted ASU No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. The ASU eliminates the requirement for an investor to retrospectively apply the equity method when its increase in ownership interest or degree of influence in an investee triggers equity method accounting. The provisions of ASU No. 2016-07 were adopted on a prospective basis and did not have an impact on the Company's financial position, results of operations or cash flows. Effective January 1, 2017, the Company early adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. Some of the topics covered by the ASU include the classification of debt prepayment and extinguishment costs, contingent consideration payments made after a business combination and distributions from equity method investees. Upon adoption of this ASU, the Company made an accounting policy election to use the cumulative earnings approach for presenting distributions received from equity method investees, which is consistent with its existing approach. Under this approach, distributions up to the amount of cumulative equity in earnings recognized will be treated as returns on investment and presented in operating activities and those in excess of that amount will be treated as returns of investment and presented in financing activities. The provisions of ASU No. 2016-15 were adopted on a retrospective basis and did not impact the Company's financial position, results of operations or cash flows. Effective January 1, 2017, the Company adopted ASU No. 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control, which requires a single decision maker evaluating whether it is the primary beneficiary of a VIE to consider its indirect interests held by related parties that are under common control on a proportionate basis. Under the guidance the FASB issued in ASU No. 2015-02, the decision maker was required to consider those interests in their entirety. ASU No. 2016-17 was required to be applied retrospectively to 2016, the fiscal year in which the amendments in ASU No. 2015-02 initially were applied. Adoption of this guidance did not result in any changes to our previous consolidation conclusions. Effective January 1, 2017, the Company early adopted ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The ASU requires that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company previously presented changes in restricted cash and restricted cash equivalents on the statements of cash flows as an investing activity. The Company generally describes amounts held in trust or on deposit to support underwriting activities as well as amounts pledged as security for letters of credit as restricted cash or restricted cash equivalents. The provisions of ASU No. 2016-18 were adopted on a retrospective basis and did not impact the Company's financial position, results of operations or total comprehensive income. Upon adoption of this ASU, investing cash outflows of $7.1 million attributed to the change in restricted cash for the three months ended March 31, 2016 were reclassified out of investing activities. The Company's statements of cash flows now include restricted cash and restricted cash equivalents in the beginning-of-period and end-of-period total amounts for cash, cash equivalents and restricted cash and restricted cash equivalents. Effective January 1, 2017, the Company early adopted ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The ASU changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The guidance provides a screen to determine when a set of assets and activities is not a business. The provisions of ASU No. 2017-01 were adopted on a prospective basis and did not have an impact on the Company's financial position, results of operations or cash flows. Effective January 1, 2017, the Company early adopted ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The ASU eliminates Step 2 of the goodwill impairment test, which is performed by estimating the fair value of individual assets and liabilities of the reporting unit to calculate the implied fair value of goodwill. Instead, an entity will record a goodwill impairment charge based on the excess of a reporting unit's carrying value over its estimated fair value, not to exceed the carrying amount of goodwill. The provisions of ASU No. 2017-04 were adopted on a prospective basis and 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. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Consideration (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers were all issued in 2016 as amendments to ASU No. 2014-09. These amendments will be evaluated and adopted in conjunction with ASU No. 2014-09. The Company expects to adopt ASU No. 2014-09 as of January 1, 2018 using the modified retrospective method, whereby the cumulative effect of adoption will be recognized at the date of initial application. The adoption of this ASU will not impact the Company's insurance premium revenues or revenues from its investment portfolio, which totaled 77% of consolidated revenues for the year ended December 31, 2016, but will impact the Company's other revenues, which are primarily attributable to its non-insurance operations. The Company has completed an inventory of revenue streams from its non-insurance operations, which are comprised of a diverse portfolio of contracts across various industries, and is currently evaluating changes, if any, that will be necessary. The Company has not determined the full impact that adopting the new accounting guidance will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities . The ASU significantly changes the income statement impact of equity investments and the recognition of changes in fair value of financial liabilities attributable to an entity's own credit risk when the fair value option is elected. The ASU requires equity instruments that do not result in consolidation and are not accounted for under the equity method to be measured at fair value and to recognize any changes in fair value in net income rather than other comprehensive income. ASU No. 2016-01 becomes effective for the Company during the first quarter of 2018 and will be applied using a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The provisions related to equity investments without a readily determinable fair value will be applied prospectively to equity investments as of the adoption date. The Company is currently evaluating ASU No. 2016-01 to determine the impact that adopting this standard will have on the consolidated financial statements. Adoption of this ASU is not expected to have a material impact on the Company's financial position, cash flows, or total comprehensive income, but will have a material impact on the Company's results of operations as changes in fair value of equity instruments will be presented in net income rather than other comprehensive income. As of March 31, 2017, accumulated other comprehensive income included $1.7 billion of net unrealized gains on equity securities, net of taxes. See note 4(e) for details regarding the change in net unrealized gains on equity securities included in other comprehensive income (loss) for the three months ended March 31, 2017 and 2016. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The ASU requires lessees to record most leases on their balance sheets as a lease liability with a corresponding right-of-use asset, but continue to recognize the related leasing expense within net income. The guidance also eliminates real estate-specific provisions for all entities. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. ASU No. 2016-02 becomes effective for the Company during the first quarter of 2019 and will be applied using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company's future minimum lease payments, which represent minimum annual rental commitments excluding taxes, insurance and other operating costs for noncancelable operating leases, and will be subject to this new guidance, totaled $234.3 million at December 31, 2016. The calculation of the lease liability and right-of-use asset requires further analysis of the underlying leases to determine which portions of the underlying lease payments are required to be included in the calculation. The Company is currently evaluating ASU No. 2016-02 to determine the potential impact that adopting this standard will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU replaces the current incurred loss model used to measure impairment losses with an expected loss model for trade, reinsurance, and other receivables as well as financial instruments measured at amortized cost. For available-for-sale debt securities, which are measured at fair value, the ASU requires entities to record impairments as an allowance, rather than a reduction of the amortized cost, as is currently required under the other-than-temporary impairment model. ASU No. 2016-13 becomes effective for the Company during the first quarter of 2020 and will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating ASU No. 2016-13 to determine the potential impact that adopting this standard will have on the consolidated financial statements. Application of the new expected loss model for measuring impairment losses will not impact the Company's investment portfolio, all of which is considered available-for sale, but will impact the Company's other financial assets, including its reinsurance recoverables. Upon adoption of this ASU, any impairment losses on the Company's available-for-sale debt securities will be recorded as an allowance, subject to reversal, rather than as a reduction in amortized cost. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-entity Transfers of Assets Other Than Inventory , which will require companies to account for the income tax effects of intercompany transfers of assets other than inventory when the transfer occurs. Intercompany transfers of assets across tax jurisdictions may have cash tax consequences and may be taxable events as prescribed by the applicable tax jurisdiction. Currently, companies are prohibited from recognizing those tax effects until the asset has been sold to an outside party. The income tax effects of intercompany inventory transactions will continue to be deferred. ASU No. 2016-16 becomes effective for the Company during the first quarter of 2018 and will be applied using a modified retrospective transition approach. Early adoption is permitted. Adoption of this ASU will not impact the Company's cash flows and is not expected to have a material impact on the Company's financial position or results of operations. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which changes how employers that sponsor defined benefit pension and postretirement benefit plans present the net periodic benefit cost in the income statement. Employers will be required to present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period and the other components of the net periodic benefit cost will be presented separately from the line item that includes the service cost and outside of any subtotal of operating income, if one is presented. ASU No. 2017-07 becomes effective for the Company during the first quarter of 2018 and will be applied retrospectively. Early adoption is permitted. The Company maintains one defined benefit pension plan that has been closed to new participants since 2001 and for which employees are no longer accruing benefits for future service. Net periodic benefit income was $1.1 million , $2.2 million and $3.2 million for the years ended December 31, 2016, 2015 and 2014, respectively, which is not material to the Company. As a result, adoption of this standard is not expected to impact the Company's financial position, results of operations or cash flows. In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, which will shorten the amortization period for the premium on callable debt securities from the contractual life to the earliest call date. ASU No. 2017-08 becomes effective for the Company during the first quarter of 2019 and is required to be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Early adoption is permitted. Existing guidance in Accounting Standards Codification (ASC) 310 allows entities that have a large group of similar loans to consider estimates of future prepayments when determining the amortization period for purposes of calculating interest and amortization expense. The Company currently follows this existing guidance, which is not impacted by ASU No. 2017-08. Therefore, adoption of this ASU will not impact the Company's financial position, results of operation or cash flows. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On February 1, 2017, the Company entered into a definitive merger agreement to acquire SureTec Financial Corp. (SureTec) for approximately $250 million , a portion of which is contingent on post-acquisition earnings of SureTec. SureTec is a Texas-based privately held surety company primarily offering contract, commercial and court bonds. The transaction is subject to customary closing conditions. Required insurance regulatory approvals have been obtained and the transaction is expected to close early in the second quarter of 2017. Upon completion of the acquisition, SureTec's operating results will be included in the Company's U.S. Insurance segment. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments a) The following tables summarize the Company's available-for-sale investments. Commercial and residential mortgage-backed securities include securities issued by U.S. government-sponsored enterprises and U.S. government agencies. March 31, 2017 (dollars in thousands) Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Unrealized Other-Than- Temporary Impairment Losses Estimated Fair Value Fixed maturity securities: U.S. Treasury $ 242,552 $ 90 $ (867 ) $ — $ 241,775 U.S. government-sponsored enterprises 395,726 9,477 (3,203 ) — 402,000 Obligations of states, municipalities and political subdivisions 4,496,459 159,684 (40,078 ) — 4,616,065 Foreign governments 1,264,563 145,540 (2,046 ) — 1,408,057 Commercial mortgage-backed 1,145,469 3,803 (19,624 ) — 1,129,648 Residential mortgage-backed 797,442 16,602 (4,618 ) — 809,426 Asset-backed 26,731 1 (101 ) — 26,631 Corporate 1,333,154 47,713 (7,950 ) — 1,372,917 Total fixed maturity securities 9,702,096 382,910 (78,487 ) — 10,006,519 Equity securities: Insurance, banks and other financial institutions 848,977 906,464 (831 ) — 1,754,610 Industrial, consumer and all other 1,706,511 1,581,603 (3,791 ) — 3,284,323 Total equity securities 2,555,488 2,488,067 (4,622 ) — 5,038,933 Short-term investments 2,178,111 47 (123 ) — 2,178,035 Investments, available-for-sale $ 14,435,695 $ 2,871,024 $ (83,232 ) $ — $ 17,223,487 December 31, 2016 (dollars in thousands) Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Unrealized Other-Than- Temporary Impairment Losses Estimated Fair Value Fixed maturity securities: U.S. Treasury $ 259,379 $ 99 $ (894 ) $ — $ 258,584 U.S. government-sponsored enterprises 418,457 9,083 (4,328 ) — 423,212 Obligations of states, municipalities and political subdivisions 4,324,332 145,678 (41,805 ) — 4,428,205 Foreign governments 1,306,324 159,291 (2,153 ) — 1,463,462 Commercial mortgage-backed 1,055,947 3,953 (19,544 ) — 1,040,356 Residential mortgage-backed 779,503 18,749 (5,048 ) (2,258 ) 790,946 Asset-backed 27,494 2 (158 ) — 27,338 Corporate 1,420,298 49,146 (9,364 ) (673 ) 1,459,407 Total fixed maturity securities 9,591,734 386,001 (83,294 ) (2,931 ) 9,891,510 Equity securities: Insurance, banks and other financial institutions 846,343 857,063 (5,596 ) — 1,697,810 Industrial, consumer and all other 1,635,105 1,421,080 (8,154 ) — 3,048,031 Total equity securities 2,481,448 2,278,143 (13,750 ) — 4,745,841 Short-term investments 2,336,100 57 (6 ) — 2,336,151 Investments, available-for-sale $ 14,409,282 $ 2,664,201 $ (97,050 ) $ (2,931 ) $ 16,973,502 b) The following tables summarize gross unrealized investment losses by the length of time that securities have continuously been in an unrealized loss position. March 31, 2017 Less than 12 months 12 months or longer Total (dollars in thousands) Estimated Fair Value Gross Unrealized Holding and Other-Than- Temporary Impairment Losses Estimated Fair Value Gross Unrealized Holding and Other-Than- Temporary Impairment Losses Estimated Fair Value Gross Unrealized Holding and Other-Than- Temporary Impairment Losses Fixed maturity securities: U.S. Treasury $ 225,832 $ (867 ) $ — $ — $ 225,832 $ (867 ) U.S. government-sponsored enterprises 213,631 (3,200 ) 7,538 (3 ) 221,169 (3,203 ) Obligations of states, municipalities and political subdivisions 1,034,288 (36,072 ) 31,808 (4,006 ) 1,066,096 (40,078 ) Foreign governments 111,137 (2,043 ) 5,002 (3 ) 116,139 (2,046 ) Commercial mortgage-backed 769,805 (19,302 ) 24,327 (322 ) 794,132 (19,624 ) Residential mortgage-backed 181,127 (2,497 ) 77,314 (2,121 ) 258,441 (4,618 ) Asset-backed 21,163 (62 ) 5,402 (39 ) 26,565 (101 ) Corporate 459,805 (6,752 ) 86,784 (1,198 ) 546,589 (7,950 ) Total fixed maturity securities 3,016,788 (70,795 ) 238,175 (7,692 ) 3,254,963 (78,487 ) Equity securities: Insurance, banks and other financial institutions 8,670 (110 ) 13,367 (721 ) 22,037 (831 ) Industrial, consumer and all other 20,997 (1,583 ) 6,598 (2,208 ) 27,595 (3,791 ) Total equity securities 29,667 (1,693 ) 19,965 (2,929 ) 49,632 (4,622 ) Short-term investments 1,041,378 (123 ) — — 1,041,378 (123 ) Total $ 4,087,833 $ (72,611 ) $ 258,140 $ (10,621 ) $ 4,345,973 $ (83,232 ) At March 31, 2017 , the Company held 618 securities with a total estimated fair value of $4.3 billion and gross unrealized losses of $83.2 million . Of these 618 securities, 96 securities had been in a continuous unrealized loss position for one year or longer and had a total estimated fair value of $258.1 million and gross unrealized losses of $10.6 million . Of these securities, 82 securities were fixed maturity securities and 14 were equity securities. The Company does not intend to sell or believe it will be required to sell these fixed maturity securities before recovery of their amortized cost. The Company has the ability and intent to hold these equity securities for a period of time sufficient to allow for the anticipated recovery of their fair value. December 31, 2016 Less than 12 months 12 months or longer Total (dollars in thousands) Estimated Fair Value Gross Unrealized Holding and Other-Than- Temporary Impairment Losses Estimated Fair Value Gross Unrealized Holding and Other-Than- Temporary Impairment Losses Estimated Fair Value Gross Unrealized Holding and Other-Than- Temporary Impairment Losses Fixed maturity securities: U.S. Treasury $ 122,950 $ (894 ) $ — $ — $ 122,950 $ (894 ) U.S. government-sponsored enterprises 220,333 (4,324 ) 7,618 (4 ) 227,951 (4,328 ) Obligations of states, municipalities and political subdivisions 1,004,947 (37,685 ) 31,723 (4,120 ) 1,036,670 (41,805 ) Foreign governments 68,887 (2,145 ) 5,005 (8 ) 73,892 (2,153 ) Commercial mortgage-backed 749,889 (19,091 ) 29,988 (453 ) 779,877 (19,544 ) Residential mortgage-backed 181,557 (4,987 ) 79,936 (2,319 ) 261,493 (7,306 ) Asset-backed 14,501 (106 ) 5,869 (52 ) 20,370 (158 ) Corporate 494,573 (8,357 ) 93,790 (1,680 ) 588,363 (10,037 ) Total fixed maturity securities 2,857,637 (77,589 ) 253,929 (8,636 ) 3,111,566 (86,225 ) Equity securities: Insurance, banks and other financial institutions 8,808 (410 ) 37,973 (5,186 ) 46,781 (5,596 ) Industrial, consumer and all other 98,406 (4,772 ) 29,650 (3,382 ) 128,056 (8,154 ) Total equity securities 107,214 (5,182 ) 67,623 (8,568 ) 174,837 (13,750 ) Short-term investments 504,211 (6 ) — — 504,211 (6 ) Total $ 3,469,062 $ (82,777 ) $ 321,552 $ (17,204 ) $ 3,790,614 $ (99,981 ) At December 31, 2016 , the Company held 654 securities with a total estimated fair value of $3.8 billion and gross unrealized losses of $100.0 million . Of these 654 securities, 109 securities had been in a continuous unrealized loss position for one year or longer and had a total estimated fair value of $321.6 million and gross unrealized losses of $17.2 million . Of these securities, 93 securities were fixed maturity securities and 16 were equity securities. 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 maturity securities, 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 maturity securities 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 maturity securities at March 31, 2017 are shown below by contractual maturity. (dollars in thousands) Amortized Cost Estimated Fair Value Due in one year or less $ 589,338 $ 591,779 Due after one year through five years 1,151,016 1,191,368 Due after five years through ten years 1,589,079 1,667,691 Due after ten years 4,403,021 4,589,976 7,732,454 8,040,814 Commercial mortgage-backed 1,145,469 1,129,648 Residential mortgage-backed 797,442 809,426 Asset-backed 26,731 26,631 Total fixed maturity securities $ 9,702,096 $ 10,006,519 d) The following table presents the components of net investment income. Three Months Ended March 31, (dollars in thousands) 2017 2016 Interest: Municipal bonds (tax-exempt) $ 22,372 $ 21,922 Municipal bonds (taxable) 17,505 15,888 Other taxable bonds 34,888 35,319 Short-term investments, including overnight deposits 4,949 2,291 Dividends on equity securities 20,606 17,652 Income (loss) from equity method investments 4,593 (253 ) Other (229 ) 2,484 104,684 95,303 Investment expenses (4,316 ) (4,009 ) Net investment income $ 100,368 $ 91,294 e) The following table presents net realized investment gains and the change in net unrealized gains on investments. Three Months Ended March 31, (dollars in thousands) 2017 2016 Realized gains: Sales of fixed maturity securities $ 244 $ 268 Sales of equity securities 15,239 27,728 Other 570 438 Total realized gains 16,053 28,434 Realized losses: Sales of fixed maturity securities (231 ) (413 ) Sales of equity securities (431 ) (718 ) Other-than-temporary impairments (3,213 ) (8,405 ) Other (208 ) (2,296 ) Total realized losses (4,083 ) (11,832 ) Gains on securities measured at fair value through net income 8,895 4,577 Net realized investment gains $ 20,865 $ 21,179 Change in net unrealized gains on investments included in other comprehensive income: Fixed maturity securities $ 4,647 $ 239,956 Equity securities 219,052 96,958 Short-term investments (127 ) (67 ) Net increase $ 223,572 $ 336,847 For the three months ended March 31, 2017 , other-than-temporary impairment losses recognized in net income and included in net realized investment gains totaled $3.2 million related to one equity security included in industrial, consumer, or other types of businesses. For the three months ended March 31, 2016 , other-than-temporary impairment losses recognized in net income and included in net realized investment gains totaled $8.4 million and were attributable to 14 equity securities. The write downs in 2016 included $7.7 million related to equities in industrial, consumer, or other types of businesses. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
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 maturity securities, 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 maturity securities 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, U.S. government-sponsored enterprises, municipal bonds, foreign government bonds, commercial mortgage-backed securities, residential mortgage-backed securities, asset-backed securities and corporate debt securities. Level 3 investments include the Company's investments in insurance-linked securities funds (the ILS Funds), as further described in note 10 , which are not traded on an active exchange and are valued using unobservable inputs. 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. Due to the significance of unobservable inputs required in measuring the fair value of the Company's investments in the ILS Funds, these investments are classified as Level 3 within the fair value hierarchy. Changes in fair value of the ILS Funds are included in net realized gains in net income. The fair value of the securities are derived using their reported net asset value (NAV) as the primary input, as well as other observable and unobservable inputs as deemed necessary by management. Management has obtained an understanding of the inputs, assumptions, process, and controls used to determine NAV, which is calculated by an independent third party. Unobservable inputs to the NAV calculations include assumptions around premium earnings patterns and loss reserve estimates for the underlying securitized reinsurance contracts in which the ILS Funds invest. Significant unobservable inputs used in the valuation of these investments include an adjustment to include the fair value of the equity that was issued by one of the ILS Funds in exchange for notes receivable, rather than cash, which is excluded from NAV. The Company's investments in the ILS Funds are redeemable annually as of January 1 st of each calendar year. The Company's valuation policies and procedures for Level 3 investments are determined by management. Fair value measurements are analyzed quarterly to ensure the change in fair value from prior periods is reasonable relative to management's understanding of the underlying investments, recent market trends and external market data, which includes the price of a comparable security and an insurance-linked security index. 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 measured at fair value on a recurring basis by level within the fair value hierarchy. March 31, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investments available-for-sale: Fixed maturity securities: U.S. Treasury $ — $ 241,775 $ — $ 241,775 U.S. government-sponsored enterprises — 402,000 — 402,000 Obligations of states, municipalities and political subdivisions — 4,616,065 — 4,616,065 Foreign governments — 1,408,057 — 1,408,057 Commercial mortgage-backed — 1,129,648 — 1,129,648 Residential mortgage-backed — 809,426 — 809,426 Asset-backed — 26,631 — 26,631 Corporate — 1,372,917 — 1,372,917 Total fixed maturity securities — 10,006,519 — 10,006,519 Equity securities: Insurance, banks and other financial institutions 1,576,567 — 178,043 1,754,610 Industrial, consumer and all other 3,284,323 — — 3,284,323 Total equity securities 4,860,890 — 178,043 5,038,933 Short-term investments 2,094,369 83,666 — 2,178,035 Total investments available-for-sale $ 6,955,259 $ 10,090,185 $ 178,043 $ 17,223,487 December 31, 2016 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investments available-for-sale: Fixed maturity securities: U.S. Treasury $ — $ 258,584 $ — $ 258,584 U.S. government-sponsored enterprises — 423,212 — 423,212 Obligations of states, municipalities and political subdivisions — 4,428,205 — 4,428,205 Foreign governments — 1,463,462 — 1,463,462 Commercial mortgage-backed — 1,040,356 — 1,040,356 Residential mortgage-backed — 790,946 — 790,946 Asset-backed — 27,338 — 27,338 Corporate — 1,459,407 — 1,459,407 Total fixed maturity securities — 9,891,510 — 9,891,510 Equity securities: Insurance, banks and other financial institutions 1,506,607 — 191,203 1,697,810 Industrial, consumer and all other 3,048,031 — — 3,048,031 Total equity securities 4,554,638 — 191,203 4,745,841 Short-term investments 2,255,898 80,253 — 2,336,151 Total investments available-for-sale $ 6,810,536 $ 9,971,763 $ 191,203 $ 16,973,502 The following table summarizes changes in Level 3 investments measured at fair value on a recurring basis. Three Months Ended March 31, (dollars in thousands) 2017 2016 Equity securities, beginning of period $ 191,203 $ — Purchases 6,000 170,250 Sales (25,371 ) — Total gains included in: Net income 6,211 6,692 Other comprehensive income — — Transfers into Level 3 — — Transfers out of Level 3 — — Equity securities, end of period $ 178,043 $ 176,942 Net unrealized gains included in net income relating to assets held at March 31, 2017 and 2016 (1) $ 6,211 $ 6,692 (1) Included in net realized investment gains in the consolidated statements of income and comprehensive income. There were no transfers into or out of Level 1 and Level 2 during the three months ended March 31, 2017 and 2016 . The Company did not have any assets or liabilities measured at fair value on a non-recurring basis during the three months ended March 31, 2017 and 2016 . |
Segment Reporting Disclosures
Segment Reporting Disclosures | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment Reporting Disclosures | Segment Reporting Disclosures 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 of London. 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, 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 the Company's 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 and the results of the Company's investment management services attributable to Markel CATCo Investment Management Ltd. For purposes of segment reporting, the Company's non-insurance operations are not considered to be a reportable segment. Segment profit for the Investing segment is measured by net investment income and net realized investment gains. 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. a) The following tables summarize the Company's segment disclosures. Three Months Ended March 31, 2017 (dollars in thousands) U.S. Insurance International Insurance Reinsurance Other Insurance (Discontinued Lines) Investing Consolidated Gross premium volume $ 639,829 $ 273,168 $ 547,737 $ 17 $ — $ 1,460,751 Net written premiums 545,105 225,412 489,596 116 — 1,260,229 Earned premiums 549,336 207,513 225,637 116 — 982,602 Losses and loss adjustment expenses: Current accident year (346,306 ) (146,430 ) (145,610 ) — — (638,346 ) Prior accident years 42,620 50,266 (71,563 ) 5,304 — 26,627 Amortization of policy acquisition costs (112,966 ) (34,723 ) (56,859 ) — — (204,548 ) Other operating expenses (93,375 ) (52,275 ) (22,869 ) (164 ) — (168,683 ) Underwriting profit (loss) 39,309 24,351 (71,264 ) 5,256 — (2,348 ) Net investment income — — — — 100,368 100,368 Net realized investment gains — — — — 20,865 20,865 Other revenues (insurance) 663 3,995 416 436 — 5,510 Other expenses (insurance) (758 ) (2,346 ) — (7,064 ) — (10,168 ) Segment profit (loss) $ 39,214 $ 26,000 $ (70,848 ) $ (1,372 ) $ 121,233 $ 114,227 Other revenues (non-insurance) 302,406 Other expenses (non-insurance) (272,417 ) Amortization of intangible assets (16,770 ) Interest expense (33,402 ) Income before income taxes $ 94,044 U.S. GAAP combined ratio (1) 93 % 88 % 132 % NM (2) 100 % Three Months Ended March 31, 2016 (dollars in thousands) U.S. Insurance International Insurance Reinsurance Other Insurance (Discontinued Lines) Investing Consolidated Gross premium volume $ 647,790 $ 291,404 $ 453,486 $ (17 ) $ — $ 1,392,663 Net written premiums 552,745 226,399 402,726 90 — 1,181,960 Earned premiums 532,468 215,345 209,619 254 — 957,686 Losses and loss adjustment expenses: Current accident year (316,333 ) (145,476 ) (130,476 ) — — (592,285 ) Prior accident years 38,654 29,652 36,361 13,654 — 118,321 Amortization of policy acquisition costs (108,004 ) (34,272 ) (47,693 ) — — (189,969 ) Other operating expenses (89,459 ) (54,334 ) (30,812 ) (114 ) — (174,719 ) Underwriting profit 57,326 10,915 36,999 13,794 — 119,034 Net investment income — — — — 91,294 91,294 Net realized investment gains — — — — 21,179 21,179 Other revenues (insurance) 1,419 4,121 — 495 — 6,035 Other expenses (insurance) (724 ) (1,554 ) — (8,001 ) — (10,279 ) Segment profit $ 58,021 $ 13,482 $ 36,999 $ 6,288 $ 112,473 $ 227,263 Other revenues (non-insurance) 299,988 Other expenses (non-insurance) (264,814 ) Amortization of intangible assets (17,260 ) Interest expense (30,841 ) Income before income taxes $ 214,336 U.S. GAAP combined ratio (1) 89 % 95 % 82 % NM (2) 88 % (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. b) The following table reconciles segment assets to the Company's consolidated balance sheets. (dollars in thousands) March 31, 2017 December 31, 2016 Segment assets: Investing $ 19,299,203 $ 19,029,584 Underwriting 5,641,242 5,397,696 Total segment assets 24,940,445 24,427,280 Non-insurance operations 1,460,234 1,448,019 Total assets $ 26,400,679 $ 25,875,299 |
Unpaid Losses And Loss Adjustme
Unpaid Losses And Loss Adjustment Expenses | 3 Months Ended |
Mar. 31, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract] | |
Unpaid Losses And Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses The following table presents a reconciliation of consolidated beginning and ending reserves for losses and loss adjustment expenses. Three Months Ended March 31, (dollars in thousands) 2017 2016 Net reserves for losses and loss adjustment expenses, beginning of year $ 8,108,717 $ 8,235,288 Foreign currency movements 10,364 19,814 Adjusted net reserves for losses and loss adjustment expenses, beginning of year 8,119,081 8,255,102 Incurred losses and loss adjustment expenses: Current year 638,346 592,285 Prior years (22,739 ) (106,595 ) Total incurred losses and loss adjustment expenses 615,607 485,690 Payments: Current year 57,514 36,990 Prior years 486,163 493,554 Total payments 543,677 530,544 Effect of foreign currency rate changes (611 ) 957 Net reserves for losses and loss adjustment expenses, end of period 8,190,400 8,211,205 Reinsurance recoverable on unpaid losses 1,949,278 2,046,301 Gross reserves for losses and loss adjustment expenses, end of period $ 10,139,678 $ 10,257,506 In March 2015, the Company completed a retroactive reinsurance transaction to cede to a third party a portfolio of policies primarily comprised of liabilities arising from asbestos and environmental exposures that originated before 1992. Effective March 31, 2017, the related reserves, which totaled $69.1 million , were formally transferred to the third party by way of a Part VII transfer pursuant to the Financial Services and Markets Act 2000 of the United Kingdom. The Part VII transfer eliminates the uncertainty regarding the potential for adverse development of estimated ultimate liabilities on the underlying policies. Upon completion of the transfer in the first quarter of 2017, the Company recognized a previously deferred gain of $3.9 million , which is included in losses and loss adjustment expenses on the consolidated statement of income and comprehensive income for the three months ended March 31, 2017. This amount is excluded from the prior years' incurred losses and loss adjustment expenses for the three months ended March 31, 2017 in the above table as the deferred gain was included in other liabilities on the consolidated balance sheet as of December 31, 2016, rather than unpaid losses and loss adjustment expenses. For the three months ended March 31, 2016, incurred losses and loss adjustment expenses in the above table exclude $11.7 million of favorable development on prior years loss reserves included in losses and loss adjustment expenses on the consolidated statement of income and comprehensive income related to the commutation of a property and casualty deposit contract, for which the underlying deposit liability was included in other liabilities on the consolidated balance sheet as of December 31, 2015, rather than unpaid losses and loss adjustment expenses. For the three months ended March 31, 2017 , incurred losses and loss adjustment expenses included $22.7 million of favorable development on prior years' loss reserves. Redundancies of $107.7 million were due in part to $73.0 million of loss reserve redundancies on the Company's general liability and worker's compensation product lines within the U.S. Insurance segment, general liability and marine and energy product lines within the International Insurance segment, and property product lines within the Reinsurance segment. Redundancies for the three months ended March 31, 2017 were largely offset by $85.0 million of adverse development resulting from a decrease in the discount rate, known as the Ogden Rate, used to calculate lump sum awards in United Kingdom (U.K.) bodily injury cases. Effective March 20, 2017, the Ogden Rate decreased from plus 2.5% to minus 0.75% , which represents the first rate change since 2001. The effect of the rate change is most impactful to the Company's U.K. auto casualty exposures through reinsurance contracts written in the Reinsurance segment. In late 2014, the Company ceased writing auto reinsurance in the U.K. The reduction in the Ogden Rate increased the expected claims payments on these exposures, and management increased loss reserves accordingly. The Company's estimate of the ultimate cost of settling these claims is based on many factors, and is subject to increase or decrease as the effect of changes in these factors becomes known over time. For the three months ended March 31, 2016 , incurred losses and loss adjustment expenses included $106.6 million of favorable development on prior years' loss reserves, which was due in part to $74.9 million of loss reserve redundancies on the Company's general liability product lines within the U.S. Insurance segment, professional liability and marine and energy product lines within the International Insurance segment, and property, marine and energy and professional liability product lines within the Reinsurance segment. Redundancies for the three months ended March 31, 2016 were partially offset by $21.8 million of adverse development on our specified medical and medical malpractice product lines within the U.S. Insurance segment. |
Other Revenues And Other Expens
Other Revenues And Other Expenses | 3 Months Ended |
Mar. 31, 2017 | |
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. Three Months Ended March 31, 2017 2016 (dollars in thousands) Other Revenues Other Expenses Other Revenues Other Expenses Insurance: Managing general agent operations $ 4,658 $ 1,853 $ 5,540 $ 2,278 Life and annuity 436 7,064 495 8,001 Other 416 1,251 — — 5,510 10,168 6,035 10,279 Non-Insurance: Markel Ventures: Manufacturing 177,135 153,653 192,691 160,366 Markel Ventures: Non-Manufacturing 109,800 97,611 93,828 88,433 Investment management 9,359 14,935 7,173 9,930 Other 6,112 6,218 6,296 6,085 302,406 272,417 299,988 264,814 Total $ 307,916 $ 282,585 $ 306,023 $ 275,093 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 businesses is operated independently from one another, management aggregates financial results into two industry groups: manufacturing and non-manufacturing. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The following table summarizes the effect of reinsurance and retrocessional reinsurance on premiums written and earned. Three Months Ended March 31, 2017 2016 (dollars in thousands) Written Earned Written Earned Direct $ 849,484 $ 862,986 $ 879,088 $ 867,444 Assumed 611,267 307,569 513,575 290,063 Ceded (200,522 ) (187,953 ) (210,703 ) (199,821 ) Net premiums $ 1,260,229 $ 982,602 $ 1,181,960 $ 957,686 The percentage of ceded earned premiums to gross earned premiums was 16% and 17% for the three months ended March 31, 2017 and 2016 . The percentage of assumed earned premiums to net earned premiums was 31% and 30% , respectively, for the three months ended March 31, 2017 and 2016 . Incurred losses and loss adjustment expenses were net of reinsurance recoverables (ceded incurred losses and loss adjustment expenses) of $99.6 million and $130.6 million , respectively, for the three months ended March 31, 2017 and 2016 . |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities Markel CATCo Investment Management Ltd. (MCIM), a wholly-owned consolidated subsidiary of the Company, is an insurance-linked securities investment fund manager and insurance manager headquartered in Bermuda. Results attributable to MCIM are included with the Company's non-insurance operations, which are not included in a reportable segment. MCIM manages a mutual fund company and reinsurance company, both of which were organized under Bermuda law. The mutual fund company issues multiple classes of nonvoting, redeemable preference shares to investors through its funds (the Funds) and the Funds are primarily invested in nonvoting shares of the reinsurance company. The underwriting results of the reinsurance company are attributed to the Funds through the issuance of nonvoting preference shares. The Funds and the reinsurance company are considered VIEs, as their preference shareholders have no voting rights. MCIM has the power to direct the activities that most significantly impact the economic performance of these entities, but does not have a variable interest in any of the entities. Except as described below, the Company is not the primary beneficiary of the Funds or the reinsurance company, as the Company's involvement is generally limited to that of an investment or insurance manager, receiving fees that are at market and commensurate with the level of effort required. Investment management fees earned by the Company from unconsolidated Funds for the three months ended March 31, 2017 and 2016 were $9.4 million and $7.2 million , respectively. The Company is the sole investor in one of the Funds, the Markel Diversified Fund, and consolidates that fund as its primary beneficiary. As of March 31, 2017 , total assets of the Markel Diversified Fund were $181.2 million and total liabilities were $63.7 million . As of December 31, 2016 , total assets of the Markel Diversified Fund were $166.8 million and total liabilities were $64.6 million . The assets of the Markel Diversified Fund are available for use only by the Markel Diversified Fund, and are not available for use by the Company. Total assets of the Markel Diversified Fund include an investment in one of the unconsolidated Funds totaling $177.4 million as of March 31, 2017 and $165.1 million as of December 31, 2016 , which represents 6% of the outstanding preference shares of that fund in both periods. This investment is included in equity securities (available-for-sale) on the Company's consolidated balance sheets. Total liabilities of the Markel Diversified Fund for both periods includes a $62.5 million note payable, delivered as part of the consideration provided for its investment. This note payable is included in senior long-term debt and other debt on the Company's consolidated balance sheets. Other than the note payable, any liabilities held by the Markel Diversified Fund have no recourse to the Company's general credit. The Company's exposure to risk from the unconsolidated Funds and reinsurance company is generally limited to its investment and any earned but uncollected fees. The Company has not issued any investment performance guarantees to these VIEs or their investors. As of March 31, 2017 , total investment and insurance assets under management of MCIM for unconsolidated VIEs were $4.1 billion . |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 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 period. Three Months Ended March 31, (in thousands, except per share amounts) 2017 2016 Net income to shareholders $ 69,869 $ 160,370 Adjustment of redeemable noncontrolling interests (15,143 ) (3,452 ) Adjusted net income to shareholders $ 54,726 $ 156,918 Basic common shares outstanding 13,998 13,994 Dilutive potential common shares from conversion of options 2 5 Dilutive potential common shares from conversion of restricted stock 46 75 Diluted shares outstanding 14,046 14,074 Basic net income per share $ 3.91 $ 11.21 Diluted net income per share $ 3.90 $ 11.15 |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2017 | |
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, for the three months ended March 31, 2017 and 2016 . (dollars in thousands) Unrealized Holding Gains on Available-for-Sale Securities Foreign Currency Net Actuarial Pension Loss Total December 31, 2015 $ 1,472,762 $ (72,696 ) $ (45,558 ) $ 1,354,508 Other comprehensive income before reclassifications 238,823 10,321 — 249,144 Amounts reclassified from accumulated other comprehensive income (12,983 ) — 463 (12,520 ) Total other comprehensive income 225,840 10,321 463 236,624 March 31, 2016 $ 1,698,602 $ (62,375 ) $ (45,095 ) $ 1,591,132 December 31, 2016 $ 1,714,930 $ (84,406 ) $ (64,658 ) $ 1,565,866 Other comprehensive income before reclassifications 160,280 1,543 — 161,823 Amounts reclassified from accumulated other comprehensive income (9,169 ) — 716 (8,453 ) Total other comprehensive income 151,111 1,543 716 153,370 March 31, 2017 $ 1,866,041 $ (82,863 ) $ (63,942 ) $ 1,719,236 The following table summarizes the tax expense (benefit) associated with each component of other comprehensive income. Three Months Ended March 31, (dollars in thousands) 2017 2016 Change in net unrealized gains on investments: Net holding gains arising during the period $ 74,993 $ 116,499 Change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period — (15 ) Reclassification adjustments for net gains included in net income (2,532 ) (5,477 ) Change in net unrealized gains on investments 72,461 111,007 Change in foreign currency translation adjustments (37 ) (77 ) Change in net actuarial pension loss 179 102 Total $ 72,603 $ 111,032 The following table presents the details of amounts reclassified from accumulated other comprehensive income into income, by component. Three Months Ended March 31, (dollars in thousands) 2017 2016 Unrealized holding gains on available-for-sale securities: Other-than-temporary impairment losses $ (3,213 ) $ (8,405 ) Net realized investment gains, excluding other-than-temporary impairment losses 14,914 26,865 Total before taxes 11,701 18,460 Income taxes (2,532 ) (5,477 ) Reclassification of unrealized holding gains, net of taxes $ 9,169 $ 12,983 Net actuarial pension loss: Underwriting, acquisition and insurance expenses $ (895 ) $ (565 ) Income taxes 179 102 Reclassification of net actuarial pension loss, net of taxes $ (716 ) $ (463 ) |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Loss Contingency [Abstract] | |
Contingencies | Contingencies In October 2010, the Company completed its acquisition of Aspen Holdings, Inc. (Aspen). As part of the consideration for that acquisition, Aspen shareholders received contingent value rights (CVRs), which are currently expected to result in the payment of additional cash consideration to CVR holders. Absent the litigation described below, the final amount to be paid to CVR holders would be determined after December 31, 2017, the CVR maturity date, based on, among other things, adjustments for the development of pre-acquisition loss reserves and loss sensitive profit commissions. The CVR holder representative, Thomas Yeransian, has disputed the Company's estimation of the value of the CVRs. On September 15, 2016, Mr. Yeransian filed a suit alleging, among other things, that the Company is in default under the CVR agreement. The holder representative seeks: $47.3 million in damages, which represents the unadjusted value of the CVRs; plus interest (approximately $10.1 million through March 31, 2017) and default interest (up to an additional $8.9 million through March 31, 2017, depending on the date any default occurred); and an unspecified amount of punitive damages, costs, and attorneys’ fees. At the initial hearing held February 21, 2017, the judge stayed the proceedings and ordered the parties to discuss resolving the dispute pursuant to the independent CVR valuation procedure under the CVR agreement. The parties met on April 5, 2017, but were unsuccessful in reaching agreement on a process for resolving the dispute. Management believes the holder representative’s suit to be without merit and will vigorously defend against it. Further, management believes that any material loss resulting from the holder representative’s suit to be remote and that the contractual contingent consideration payments related to the CVRs will not have a material impact on the Company's liquidity. In addition, 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 12, 2017, the Company repaid its 7.20% unsecured senior notes ( $90.6 million principal outstanding at March 31, 2017 and December 31, 2016). |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-For-Sale Investments | The following tables summarize the Company's available-for-sale investments. Commercial and residential mortgage-backed securities include securities issued by U.S. government-sponsored enterprises and U.S. government agencies. March 31, 2017 (dollars in thousands) Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Unrealized Other-Than- Temporary Impairment Losses Estimated Fair Value Fixed maturity securities: U.S. Treasury $ 242,552 $ 90 $ (867 ) $ — $ 241,775 U.S. government-sponsored enterprises 395,726 9,477 (3,203 ) — 402,000 Obligations of states, municipalities and political subdivisions 4,496,459 159,684 (40,078 ) — 4,616,065 Foreign governments 1,264,563 145,540 (2,046 ) — 1,408,057 Commercial mortgage-backed 1,145,469 3,803 (19,624 ) — 1,129,648 Residential mortgage-backed 797,442 16,602 (4,618 ) — 809,426 Asset-backed 26,731 1 (101 ) — 26,631 Corporate 1,333,154 47,713 (7,950 ) — 1,372,917 Total fixed maturity securities 9,702,096 382,910 (78,487 ) — 10,006,519 Equity securities: Insurance, banks and other financial institutions 848,977 906,464 (831 ) — 1,754,610 Industrial, consumer and all other 1,706,511 1,581,603 (3,791 ) — 3,284,323 Total equity securities 2,555,488 2,488,067 (4,622 ) — 5,038,933 Short-term investments 2,178,111 47 (123 ) — 2,178,035 Investments, available-for-sale $ 14,435,695 $ 2,871,024 $ (83,232 ) $ — $ 17,223,487 December 31, 2016 (dollars in thousands) Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Unrealized Other-Than- Temporary Impairment Losses Estimated Fair Value Fixed maturity securities: U.S. Treasury $ 259,379 $ 99 $ (894 ) $ — $ 258,584 U.S. government-sponsored enterprises 418,457 9,083 (4,328 ) — 423,212 Obligations of states, municipalities and political subdivisions 4,324,332 145,678 (41,805 ) — 4,428,205 Foreign governments 1,306,324 159,291 (2,153 ) — 1,463,462 Commercial mortgage-backed 1,055,947 3,953 (19,544 ) — 1,040,356 Residential mortgage-backed 779,503 18,749 (5,048 ) (2,258 ) 790,946 Asset-backed 27,494 2 (158 ) — 27,338 Corporate 1,420,298 49,146 (9,364 ) (673 ) 1,459,407 Total fixed maturity securities 9,591,734 386,001 (83,294 ) (2,931 ) 9,891,510 Equity securities: Insurance, banks and other financial institutions 846,343 857,063 (5,596 ) — 1,697,810 Industrial, consumer and all other 1,635,105 1,421,080 (8,154 ) — 3,048,031 Total equity securities 2,481,448 2,278,143 (13,750 ) — 4,745,841 Short-term investments 2,336,100 57 (6 ) — 2,336,151 Investments, available-for-sale $ 14,409,282 $ 2,664,201 $ (97,050 ) $ (2,931 ) $ 16,973,502 |
Summary Of Gross Unrealized Investment Losses By Length Of Time That Securities Have Continuously Been In An Unrealized Loss Position | December 31, 2016 Less than 12 months 12 months or longer Total (dollars in thousands) Estimated Fair Value Gross Unrealized Holding and Other-Than- Temporary Impairment Losses Estimated Fair Value Gross Unrealized Holding and Other-Than- Temporary Impairment Losses Estimated Fair Value Gross Unrealized Holding and Other-Than- Temporary Impairment Losses Fixed maturity securities: U.S. Treasury $ 122,950 $ (894 ) $ — $ — $ 122,950 $ (894 ) U.S. government-sponsored enterprises 220,333 (4,324 ) 7,618 (4 ) 227,951 (4,328 ) Obligations of states, municipalities and political subdivisions 1,004,947 (37,685 ) 31,723 (4,120 ) 1,036,670 (41,805 ) Foreign governments 68,887 (2,145 ) 5,005 (8 ) 73,892 (2,153 ) Commercial mortgage-backed 749,889 (19,091 ) 29,988 (453 ) 779,877 (19,544 ) Residential mortgage-backed 181,557 (4,987 ) 79,936 (2,319 ) 261,493 (7,306 ) Asset-backed 14,501 (106 ) 5,869 (52 ) 20,370 (158 ) Corporate 494,573 (8,357 ) 93,790 (1,680 ) 588,363 (10,037 ) Total fixed maturity securities 2,857,637 (77,589 ) 253,929 (8,636 ) 3,111,566 (86,225 ) Equity securities: Insurance, banks and other financial institutions 8,808 (410 ) 37,973 (5,186 ) 46,781 (5,596 ) Industrial, consumer and all other 98,406 (4,772 ) 29,650 (3,382 ) 128,056 (8,154 ) Total equity securities 107,214 (5,182 ) 67,623 (8,568 ) 174,837 (13,750 ) Short-term investments 504,211 (6 ) — — 504,211 (6 ) Total $ 3,469,062 $ (82,777 ) $ 321,552 $ (17,204 ) $ 3,790,614 $ (99,981 ) The following tables summarize gross unrealized investment losses by the length of time that securities have continuously been in an unrealized loss position. March 31, 2017 Less than 12 months 12 months or longer Total (dollars in thousands) Estimated Fair Value Gross Unrealized Holding and Other-Than- Temporary Impairment Losses Estimated Fair Value Gross Unrealized Holding and Other-Than- Temporary Impairment Losses Estimated Fair Value Gross Unrealized Holding and Other-Than- Temporary Impairment Losses Fixed maturity securities: U.S. Treasury $ 225,832 $ (867 ) $ — $ — $ 225,832 $ (867 ) U.S. government-sponsored enterprises 213,631 (3,200 ) 7,538 (3 ) 221,169 (3,203 ) Obligations of states, municipalities and political subdivisions 1,034,288 (36,072 ) 31,808 (4,006 ) 1,066,096 (40,078 ) Foreign governments 111,137 (2,043 ) 5,002 (3 ) 116,139 (2,046 ) Commercial mortgage-backed 769,805 (19,302 ) 24,327 (322 ) 794,132 (19,624 ) Residential mortgage-backed 181,127 (2,497 ) 77,314 (2,121 ) 258,441 (4,618 ) Asset-backed 21,163 (62 ) 5,402 (39 ) 26,565 (101 ) Corporate 459,805 (6,752 ) 86,784 (1,198 ) 546,589 (7,950 ) Total fixed maturity securities 3,016,788 (70,795 ) 238,175 (7,692 ) 3,254,963 (78,487 ) Equity securities: Insurance, banks and other financial institutions 8,670 (110 ) 13,367 (721 ) 22,037 (831 ) Industrial, consumer and all other 20,997 (1,583 ) 6,598 (2,208 ) 27,595 (3,791 ) Total equity securities 29,667 (1,693 ) 19,965 (2,929 ) 49,632 (4,622 ) Short-term investments 1,041,378 (123 ) — — 1,041,378 (123 ) Total $ 4,087,833 $ (72,611 ) $ 258,140 $ (10,621 ) $ 4,345,973 $ (83,232 ) |
Schedule Of Amortized Cost And Estimated Fair Value Of Fixed Maturity Securities By Contractual Maturity Date | The amortized cost and estimated fair value of fixed maturity securities at March 31, 2017 are shown below by contractual maturity. (dollars in thousands) Amortized Cost Estimated Fair Value Due in one year or less $ 589,338 $ 591,779 Due after one year through five years 1,151,016 1,191,368 Due after five years through ten years 1,589,079 1,667,691 Due after ten years 4,403,021 4,589,976 7,732,454 8,040,814 Commercial mortgage-backed 1,145,469 1,129,648 Residential mortgage-backed 797,442 809,426 Asset-backed 26,731 26,631 Total fixed maturity securities $ 9,702,096 $ 10,006,519 |
Components Of Net Investment Income | The following table presents the components of net investment income. Three Months Ended March 31, (dollars in thousands) 2017 2016 Interest: Municipal bonds (tax-exempt) $ 22,372 $ 21,922 Municipal bonds (taxable) 17,505 15,888 Other taxable bonds 34,888 35,319 Short-term investments, including overnight deposits 4,949 2,291 Dividends on equity securities 20,606 17,652 Income (loss) from equity method investments 4,593 (253 ) Other (229 ) 2,484 104,684 95,303 Investment expenses (4,316 ) (4,009 ) Net investment income $ 100,368 $ 91,294 |
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. Three Months Ended March 31, (dollars in thousands) 2017 2016 Realized gains: Sales of fixed maturity securities $ 244 $ 268 Sales of equity securities 15,239 27,728 Other 570 438 Total realized gains 16,053 28,434 Realized losses: Sales of fixed maturity securities (231 ) (413 ) Sales of equity securities (431 ) (718 ) Other-than-temporary impairments (3,213 ) (8,405 ) Other (208 ) (2,296 ) Total realized losses (4,083 ) (11,832 ) Gains on securities measured at fair value through net income 8,895 4,577 Net realized investment gains $ 20,865 $ 21,179 Change in net unrealized gains on investments included in other comprehensive income: Fixed maturity securities $ 4,647 $ 239,956 Equity securities 219,052 96,958 Short-term investments (127 ) (67 ) Net increase $ 223,572 $ 336,847 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Balances Of Assets Measured At Fair Value On A Recurring Basis | The following tables present the balances of assets measured at fair value on a recurring basis by level within the fair value hierarchy. March 31, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investments available-for-sale: Fixed maturity securities: U.S. Treasury $ — $ 241,775 $ — $ 241,775 U.S. government-sponsored enterprises — 402,000 — 402,000 Obligations of states, municipalities and political subdivisions — 4,616,065 — 4,616,065 Foreign governments — 1,408,057 — 1,408,057 Commercial mortgage-backed — 1,129,648 — 1,129,648 Residential mortgage-backed — 809,426 — 809,426 Asset-backed — 26,631 — 26,631 Corporate — 1,372,917 — 1,372,917 Total fixed maturity securities — 10,006,519 — 10,006,519 Equity securities: Insurance, banks and other financial institutions 1,576,567 — 178,043 1,754,610 Industrial, consumer and all other 3,284,323 — — 3,284,323 Total equity securities 4,860,890 — 178,043 5,038,933 Short-term investments 2,094,369 83,666 — 2,178,035 Total investments available-for-sale $ 6,955,259 $ 10,090,185 $ 178,043 $ 17,223,487 December 31, 2016 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investments available-for-sale: Fixed maturity securities: U.S. Treasury $ — $ 258,584 $ — $ 258,584 U.S. government-sponsored enterprises — 423,212 — 423,212 Obligations of states, municipalities and political subdivisions — 4,428,205 — 4,428,205 Foreign governments — 1,463,462 — 1,463,462 Commercial mortgage-backed — 1,040,356 — 1,040,356 Residential mortgage-backed — 790,946 — 790,946 Asset-backed — 27,338 — 27,338 Corporate — 1,459,407 — 1,459,407 Total fixed maturity securities — 9,891,510 — 9,891,510 Equity securities: Insurance, banks and other financial institutions 1,506,607 — 191,203 1,697,810 Industrial, consumer and all other 3,048,031 — — 3,048,031 Total equity securities 4,554,638 — 191,203 4,745,841 Short-term investments 2,255,898 80,253 — 2,336,151 Total investments available-for-sale $ 6,810,536 $ 9,971,763 $ 191,203 $ 16,973,502 |
Summary Of Changes In Level 3 Investments Measured At Fair Value On A Recurring Basis | The following table summarizes changes in Level 3 investments measured at fair value on a recurring basis. Three Months Ended March 31, (dollars in thousands) 2017 2016 Equity securities, beginning of period $ 191,203 $ — Purchases 6,000 170,250 Sales (25,371 ) — Total gains included in: Net income 6,211 6,692 Other comprehensive income — — Transfers into Level 3 — — Transfers out of Level 3 — — Equity securities, end of period $ 178,043 $ 176,942 Net unrealized gains included in net income relating to assets held at March 31, 2017 and 2016 (1) $ 6,211 $ 6,692 (1) Included in net realized investment gains in the consolidated statements of income and comprehensive income. |
Segment Reporting Disclosures (
Segment Reporting Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Company's Segment Disclosures | The following tables summarize the Company's segment disclosures. Three Months Ended March 31, 2017 (dollars in thousands) U.S. Insurance International Insurance Reinsurance Other Insurance (Discontinued Lines) Investing Consolidated Gross premium volume $ 639,829 $ 273,168 $ 547,737 $ 17 $ — $ 1,460,751 Net written premiums 545,105 225,412 489,596 116 — 1,260,229 Earned premiums 549,336 207,513 225,637 116 — 982,602 Losses and loss adjustment expenses: Current accident year (346,306 ) (146,430 ) (145,610 ) — — (638,346 ) Prior accident years 42,620 50,266 (71,563 ) 5,304 — 26,627 Amortization of policy acquisition costs (112,966 ) (34,723 ) (56,859 ) — — (204,548 ) Other operating expenses (93,375 ) (52,275 ) (22,869 ) (164 ) — (168,683 ) Underwriting profit (loss) 39,309 24,351 (71,264 ) 5,256 — (2,348 ) Net investment income — — — — 100,368 100,368 Net realized investment gains — — — — 20,865 20,865 Other revenues (insurance) 663 3,995 416 436 — 5,510 Other expenses (insurance) (758 ) (2,346 ) — (7,064 ) — (10,168 ) Segment profit (loss) $ 39,214 $ 26,000 $ (70,848 ) $ (1,372 ) $ 121,233 $ 114,227 Other revenues (non-insurance) 302,406 Other expenses (non-insurance) (272,417 ) Amortization of intangible assets (16,770 ) Interest expense (33,402 ) Income before income taxes $ 94,044 U.S. GAAP combined ratio (1) 93 % 88 % 132 % NM (2) 100 % Three Months Ended March 31, 2016 (dollars in thousands) U.S. Insurance International Insurance Reinsurance Other Insurance (Discontinued Lines) Investing Consolidated Gross premium volume $ 647,790 $ 291,404 $ 453,486 $ (17 ) $ — $ 1,392,663 Net written premiums 552,745 226,399 402,726 90 — 1,181,960 Earned premiums 532,468 215,345 209,619 254 — 957,686 Losses and loss adjustment expenses: Current accident year (316,333 ) (145,476 ) (130,476 ) — — (592,285 ) Prior accident years 38,654 29,652 36,361 13,654 — 118,321 Amortization of policy acquisition costs (108,004 ) (34,272 ) (47,693 ) — — (189,969 ) Other operating expenses (89,459 ) (54,334 ) (30,812 ) (114 ) — (174,719 ) Underwriting profit 57,326 10,915 36,999 13,794 — 119,034 Net investment income — — — — 91,294 91,294 Net realized investment gains — — — — 21,179 21,179 Other revenues (insurance) 1,419 4,121 — 495 — 6,035 Other expenses (insurance) (724 ) (1,554 ) — (8,001 ) — (10,279 ) Segment profit $ 58,021 $ 13,482 $ 36,999 $ 6,288 $ 112,473 $ 227,263 Other revenues (non-insurance) 299,988 Other expenses (non-insurance) (264,814 ) Amortization of intangible assets (17,260 ) Interest expense (30,841 ) Income before income taxes $ 214,336 U.S. GAAP combined ratio (1) 89 % 95 % 82 % NM (2) 88 % (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. |
Reconciliation Of Segment Assets To The Company's Consolidated Balance Sheets | The following table reconciles segment assets to the Company's consolidated balance sheets. (dollars in thousands) March 31, 2017 December 31, 2016 Segment assets: Investing $ 19,299,203 $ 19,029,584 Underwriting 5,641,242 5,397,696 Total segment assets 24,940,445 24,427,280 Non-insurance operations 1,460,234 1,448,019 Total assets $ 26,400,679 $ 25,875,299 |
Unpaid Losses And Loss Adjust24
Unpaid Losses And Loss Adjustment Expenses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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. Three Months Ended March 31, (dollars in thousands) 2017 2016 Net reserves for losses and loss adjustment expenses, beginning of year $ 8,108,717 $ 8,235,288 Foreign currency movements 10,364 19,814 Adjusted net reserves for losses and loss adjustment expenses, beginning of year 8,119,081 8,255,102 Incurred losses and loss adjustment expenses: Current year 638,346 592,285 Prior years (22,739 ) (106,595 ) Total incurred losses and loss adjustment expenses 615,607 485,690 Payments: Current year 57,514 36,990 Prior years 486,163 493,554 Total payments 543,677 530,544 Effect of foreign currency rate changes (611 ) 957 Net reserves for losses and loss adjustment expenses, end of period 8,190,400 8,211,205 Reinsurance recoverable on unpaid losses 1,949,278 2,046,301 Gross reserves for losses and loss adjustment expenses, end of period $ 10,139,678 $ 10,257,506 |
Other Revenues And Other Expe25
Other Revenues And Other Expenses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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. Three Months Ended March 31, 2017 2016 (dollars in thousands) Other Revenues Other Expenses Other Revenues Other Expenses Insurance: Managing general agent operations $ 4,658 $ 1,853 $ 5,540 $ 2,278 Life and annuity 436 7,064 495 8,001 Other 416 1,251 — — 5,510 10,168 6,035 10,279 Non-Insurance: Markel Ventures: Manufacturing 177,135 153,653 192,691 160,366 Markel Ventures: Non-Manufacturing 109,800 97,611 93,828 88,433 Investment management 9,359 14,935 7,173 9,930 Other 6,112 6,218 6,296 6,085 302,406 272,417 299,988 264,814 Total $ 307,916 $ 282,585 $ 306,023 $ 275,093 |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Effect Of Reinsurance And Retrocessional Reinsurance On Premiums Written And Earned | The following table summarizes the effect of reinsurance and retrocessional reinsurance on premiums written and earned. Three Months Ended March 31, 2017 2016 (dollars in thousands) Written Earned Written Earned Direct $ 849,484 $ 862,986 $ 879,088 $ 867,444 Assumed 611,267 307,569 513,575 290,063 Ceded (200,522 ) (187,953 ) (210,703 ) (199,821 ) Net premiums $ 1,260,229 $ 982,602 $ 1,181,960 $ 957,686 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
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 period. Three Months Ended March 31, (in thousands, except per share amounts) 2017 2016 Net income to shareholders $ 69,869 $ 160,370 Adjustment of redeemable noncontrolling interests (15,143 ) (3,452 ) Adjusted net income to shareholders $ 54,726 $ 156,918 Basic common shares outstanding 13,998 13,994 Dilutive potential common shares from conversion of options 2 5 Dilutive potential common shares from conversion of restricted stock 46 75 Diluted shares outstanding 14,046 14,074 Basic net income per share $ 3.91 $ 11.21 Diluted net income per share $ 3.90 $ 11.15 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
Change In Accumulated Other Comprehensive Income By Component, Net Of Taxes And Noncontrolling Interest | The following table presents the change in accumulated other comprehensive income by component, net of taxes and noncontrolling interests, for the three months ended March 31, 2017 and 2016 . (dollars in thousands) Unrealized Holding Gains on Available-for-Sale Securities Foreign Currency Net Actuarial Pension Loss Total December 31, 2015 $ 1,472,762 $ (72,696 ) $ (45,558 ) $ 1,354,508 Other comprehensive income before reclassifications 238,823 10,321 — 249,144 Amounts reclassified from accumulated other comprehensive income (12,983 ) — 463 (12,520 ) Total other comprehensive income 225,840 10,321 463 236,624 March 31, 2016 $ 1,698,602 $ (62,375 ) $ (45,095 ) $ 1,591,132 December 31, 2016 $ 1,714,930 $ (84,406 ) $ (64,658 ) $ 1,565,866 Other comprehensive income before reclassifications 160,280 1,543 — 161,823 Amounts reclassified from accumulated other comprehensive income (9,169 ) — 716 (8,453 ) Total other comprehensive income 151,111 1,543 716 153,370 March 31, 2017 $ 1,866,041 $ (82,863 ) $ (63,942 ) $ 1,719,236 |
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. Three Months Ended March 31, (dollars in thousands) 2017 2016 Change in net unrealized gains on investments: Net holding gains arising during the period $ 74,993 $ 116,499 Change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period — (15 ) Reclassification adjustments for net gains included in net income (2,532 ) (5,477 ) Change in net unrealized gains on investments 72,461 111,007 Change in foreign currency translation adjustments (37 ) (77 ) Change in net actuarial pension loss 179 102 Total $ 72,603 $ 111,032 |
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. Three Months Ended March 31, (dollars in thousands) 2017 2016 Unrealized holding gains on available-for-sale securities: Other-than-temporary impairment losses $ (3,213 ) $ (8,405 ) Net realized investment gains, excluding other-than-temporary impairment losses 14,914 26,865 Total before taxes 11,701 18,460 Income taxes (2,532 ) (5,477 ) Reclassification of unrealized holding gains, net of taxes $ 9,169 $ 12,983 Net actuarial pension loss: Underwriting, acquisition and insurance expenses $ (895 ) $ (565 ) Income taxes 179 102 Reclassification of net actuarial pension loss, net of taxes $ (716 ) $ (463 ) |
Recent Accounting Pronounceme29
Recent Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Change in restricted cash reclassified out of investing activities | $ (7,100) | ||||
Insurance premium revenues and investment portfolio revenues as a percentage of consolidated revenues | 77.00% | ||||
Net unrealized gains on equity securities, net of taxes, included in accumulated other comprehensive income | $ 1,591,132 | $ 1,565,866 | $ 1,354,508 | $ 1,719,236 | |
Future minimum lease payments | 234,300 | ||||
Net periodic benefit income | $ 1,100 | $ 2,200 | $ 3,200 | ||
Equity Securities [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net unrealized gains on equity securities, net of taxes, included in accumulated other comprehensive income | $ 1,700,000 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Millions | Feb. 01, 2017USD ($) |
SureTec Financial Corp [Member] | |
Business Acquisition [Line Items] | |
Total purchase consideration | $ 250 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($)securities | Mar. 31, 2016USD ($)securities | Dec. 31, 2016USD ($)securities | |
Schedule of Investments [Line Items] | |||
Available-for-sale securities in unrealized loss position, number of positions | securities | 618 | 654 | |
Available-for-sale securities, estimated fair value | $ 4,345,973 | $ 3,790,614 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | $ (83,232) | $ (99,981) | |
Number of available-for-sale securities positions in a continuous unrealized loss position for one year or longer at period end | securities | 96 | 109 | |
Available-for-sale securities, estimated fair value, 12 months or longer | $ 258,140 | $ 321,552 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | (10,621) | (17,204) | |
Other-than-temporary impairment losses recognized in net income | (3,213) | $ (8,405) | |
Fixed Maturity Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Available-for-sale securities, estimated fair value | 3,254,963 | 3,111,566 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | $ (78,487) | $ (86,225) | |
Number of available-for-sale securities positions in a continuous unrealized loss position for one year or longer at period end | securities | 82 | 93 | |
Available-for-sale securities, estimated fair value, 12 months or longer | $ 238,175 | $ 253,929 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | (7,692) | (8,636) | |
Equity Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Available-for-sale securities, estimated fair value | 49,632 | 174,837 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | $ (4,622) | $ (13,750) | |
Number of available-for-sale securities positions in a continuous unrealized loss position for one year or longer at period end | securities | 14 | 16 | |
Available-for-sale securities, estimated fair value, 12 months or longer | $ 19,965 | $ 67,623 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | $ (2,929) | (8,568) | |
Other-than-temporary impairment losses recognized in net income | $ (8,400) | ||
Other than temporary impairment losses recognized in earnings, number of investment positions | securities | 1 | 14 | |
Industrial, Consumer And All Other [Member] | |||
Schedule of Investments [Line Items] | |||
Available-for-sale securities, estimated fair value | $ 27,595 | 128,056 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | (3,791) | (8,154) | |
Available-for-sale securities, estimated fair value, 12 months or longer | 6,598 | 29,650 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | (2,208) | (3,382) | |
Other-than-temporary impairment losses recognized in net income | (3,200) | $ (7,700) | |
Insurance, Banks And Other Financial Institutions [Member] | |||
Schedule of Investments [Line Items] | |||
Available-for-sale securities, estimated fair value | 22,037 | 46,781 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | (831) | (5,596) | |
Available-for-sale securities, estimated fair value, 12 months or longer | 13,367 | 37,973 | |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | $ (721) | $ (5,186) |
Investments (Available-For-Sale
Investments (Available-For-Sale Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | $ 14,435,695 | $ 14,409,282 |
Available-for-sale investments, gross unrealized holding gains | 2,871,024 | 2,664,201 |
Available-for-sale investments, gross unrealized holding losses | (83,232) | (97,050) |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | (2,931) |
Available-for-sale investments, estimated fair value | 17,223,487 | 16,973,502 |
U.S. Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 242,552 | 259,379 |
Available-for-sale investments, gross unrealized holding gains | 90 | 99 |
Available-for-sale investments, gross unrealized holding losses | (867) | (894) |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 241,775 | 258,584 |
U.S. Government-Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 395,726 | 418,457 |
Available-for-sale investments, gross unrealized holding gains | 9,477 | 9,083 |
Available-for-sale investments, gross unrealized holding losses | (3,203) | (4,328) |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 402,000 | 423,212 |
Obligations Of States, Municipalities And Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 4,496,459 | 4,324,332 |
Available-for-sale investments, gross unrealized holding gains | 159,684 | 145,678 |
Available-for-sale investments, gross unrealized holding losses | (40,078) | (41,805) |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 4,616,065 | 4,428,205 |
Foreign Governments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 1,264,563 | 1,306,324 |
Available-for-sale investments, gross unrealized holding gains | 145,540 | 159,291 |
Available-for-sale investments, gross unrealized holding losses | (2,046) | (2,153) |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 1,408,057 | 1,463,462 |
Commercial Mortgage-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 1,145,469 | 1,055,947 |
Available-for-sale investments, gross unrealized holding gains | 3,803 | 3,953 |
Available-for-sale investments, gross unrealized holding losses | (19,624) | (19,544) |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 1,129,648 | 1,040,356 |
Residential Mortgage-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 797,442 | 779,503 |
Available-for-sale investments, gross unrealized holding gains | 16,602 | 18,749 |
Available-for-sale investments, gross unrealized holding losses | (4,618) | (5,048) |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | (2,258) |
Available-for-sale investments, estimated fair value | 809,426 | 790,946 |
Asset-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 26,731 | 27,494 |
Available-for-sale investments, gross unrealized holding gains | 1 | 2 |
Available-for-sale investments, gross unrealized holding losses | (101) | (158) |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 26,631 | 27,338 |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 1,333,154 | 1,420,298 |
Available-for-sale investments, gross unrealized holding gains | 47,713 | 49,146 |
Available-for-sale investments, gross unrealized holding losses | (7,950) | (9,364) |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | (673) |
Available-for-sale investments, estimated fair value | 1,372,917 | 1,459,407 |
Total Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 9,702,096 | 9,591,734 |
Available-for-sale investments, gross unrealized holding gains | 382,910 | 386,001 |
Available-for-sale investments, gross unrealized holding losses | (78,487) | (83,294) |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | (2,931) |
Available-for-sale investments, estimated fair value | 10,006,519 | 9,891,510 |
Insurance, Banks And Other Financial Institutions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 848,977 | 846,343 |
Available-for-sale investments, gross unrealized holding gains | 906,464 | 857,063 |
Available-for-sale investments, gross unrealized holding losses | (831) | (5,596) |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 1,754,610 | 1,697,810 |
Industrial, Consumer And All Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 1,706,511 | 1,635,105 |
Available-for-sale investments, gross unrealized holding gains | 1,581,603 | 1,421,080 |
Available-for-sale investments, gross unrealized holding losses | (3,791) | (8,154) |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 3,284,323 | 3,048,031 |
Total Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 2,555,488 | 2,481,448 |
Available-for-sale investments, gross unrealized holding gains | 2,488,067 | 2,278,143 |
Available-for-sale investments, gross unrealized holding losses | (4,622) | (13,750) |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | 5,038,933 | 4,745,841 |
Short-Term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments, amortized cost | 2,178,111 | 2,336,100 |
Available-for-sale investments, gross unrealized holding gains | 47 | 57 |
Available-for-sale investments, gross unrealized holding losses | (123) | (6) |
Available-for-sale investments, unrealized other-than-temporary impairment losses | 0 | 0 |
Available-for-sale investments, estimated fair value | $ 2,178,035 | $ 2,336,151 |
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 ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | $ 4,087,833 | $ 3,469,062 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | (72,611) | (82,777) |
Available-for-sale securities, estimated fair value, 12 months or longer | 258,140 | 321,552 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | (10,621) | (17,204) |
Available-for-sale securities, estimated fair value | 4,345,973 | 3,790,614 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | (83,232) | (99,981) |
U.S. Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 225,832 | 122,950 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | (867) | (894) |
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 | 225,832 | 122,950 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | (867) | (894) |
U.S. Government-Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 213,631 | 220,333 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | (3,200) | (4,324) |
Available-for-sale securities, estimated fair value, 12 months or longer | 7,538 | 7,618 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | (3) | (4) |
Available-for-sale securities, estimated fair value | 221,169 | 227,951 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | (3,203) | (4,328) |
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 | 1,034,288 | 1,004,947 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | (36,072) | (37,685) |
Available-for-sale securities, estimated fair value, 12 months or longer | 31,808 | 31,723 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | (4,006) | (4,120) |
Available-for-sale securities, estimated fair value | 1,066,096 | 1,036,670 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | (40,078) | (41,805) |
Foreign Governments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 111,137 | 68,887 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | (2,043) | (2,145) |
Available-for-sale securities, estimated fair value, 12 months or longer | 5,002 | 5,005 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | (3) | (8) |
Available-for-sale securities, estimated fair value | 116,139 | 73,892 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | (2,046) | (2,153) |
Commercial Mortgage-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 769,805 | 749,889 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | (19,302) | (19,091) |
Available-for-sale securities, estimated fair value, 12 months or longer | 24,327 | 29,988 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | (322) | (453) |
Available-for-sale securities, estimated fair value | 794,132 | 779,877 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | (19,624) | (19,544) |
Residential Mortgage-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 181,127 | 181,557 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | (2,497) | (4,987) |
Available-for-sale securities, estimated fair value, 12 months or longer | 77,314 | 79,936 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | (2,121) | (2,319) |
Available-for-sale securities, estimated fair value | 258,441 | 261,493 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | (4,618) | (7,306) |
Asset-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 21,163 | 14,501 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | (62) | (106) |
Available-for-sale securities, estimated fair value, 12 months or longer | 5,402 | 5,869 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | (39) | (52) |
Available-for-sale securities, estimated fair value | 26,565 | 20,370 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | (101) | (158) |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 459,805 | 494,573 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | (6,752) | (8,357) |
Available-for-sale securities, estimated fair value, 12 months or longer | 86,784 | 93,790 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | (1,198) | (1,680) |
Available-for-sale securities, estimated fair value | 546,589 | 588,363 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | (7,950) | (10,037) |
Total Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 3,016,788 | 2,857,637 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | (70,795) | (77,589) |
Available-for-sale securities, estimated fair value, 12 months or longer | 238,175 | 253,929 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | (7,692) | (8,636) |
Available-for-sale securities, estimated fair value | 3,254,963 | 3,111,566 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | (78,487) | (86,225) |
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 | 8,670 | 8,808 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | (110) | (410) |
Available-for-sale securities, estimated fair value, 12 months or longer | 13,367 | 37,973 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | (721) | (5,186) |
Available-for-sale securities, estimated fair value | 22,037 | 46,781 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | (831) | (5,596) |
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 | 20,997 | 98,406 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | (1,583) | (4,772) |
Available-for-sale securities, estimated fair value, 12 months or longer | 6,598 | 29,650 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | (2,208) | (3,382) |
Available-for-sale securities, estimated fair value | 27,595 | 128,056 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | (3,791) | (8,154) |
Total Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 29,667 | 107,214 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | (1,693) | (5,182) |
Available-for-sale securities, estimated fair value, 12 months or longer | 19,965 | 67,623 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, 12 months or longer | (2,929) | (8,568) |
Available-for-sale securities, estimated fair value | 49,632 | 174,837 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | (4,622) | (13,750) |
Short-Term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, estimated fair value, less than 12 months | 1,041,378 | 504,211 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses, less than 12 months | (123) | (6) |
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 | 1,041,378 | 504,211 |
Available-for-sale securities, gross unrealized holding and other-than-temporary impairment losses | $ (123) | $ (6) |
Investments (Schedule Of Amorti
Investments (Schedule Of Amortized Cost And Estimated Fair Value Of Fixed Maturity Securities By Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, amortized cost | $ 589,338 | |
Due after one year through five years, amortized cost | 1,151,016 | |
Due after five years through ten years, amortized cost | 1,589,079 | |
Due after ten years, amortized cost | 4,403,021 | |
Amortized cost, sub-total | 7,732,454 | |
Total fixed maturity securities, amortized cost | 9,702,096 | $ 9,591,734 |
Due in one year or less, estimated fair value | 591,779 | |
Due after one year through five years, estimated fair value | 1,191,368 | |
Due after five years through ten years, estimated fair value | 1,667,691 | |
Due after ten years, estimated fair value | 4,589,976 | |
Estimated fair value, sub-total | 8,040,814 | |
Total fixed maturity securities, estimated fair value | 10,006,519 | $ 9,891,510 |
Commercial Mortgage-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 1,145,469 | |
Fixed maturity securities, estimated fair value | 1,129,648 | |
Residential Mortgage-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 797,442 | |
Fixed maturity securities, estimated fair value | 809,426 | |
Asset-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 26,731 | |
Fixed maturity securities, estimated fair value | $ 26,631 |
Investments (Components Of Net
Investments (Components Of Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Municipal bonds (tax-exempt) | $ 22,372 | $ 21,922 |
Short-term investments, including overnight deposits | 4,949 | 2,291 |
Dividends on equity securities | 20,606 | 17,652 |
Income (loss) from equity method investments | 4,593 | (253) |
Other | (229) | 2,484 |
Total investment income | 104,684 | 95,303 |
Investment expenses | (4,316) | (4,009) |
Net investment income | 100,368 | 91,294 |
Taxable Municipal Bonds [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Taxable bonds | 17,505 | 15,888 |
Other Taxable Bonds [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Taxable bonds | $ 34,888 | $ 35,319 |
Investments (Summary Of Net Rea
Investments (Summary Of Net Realized Investment Gains And The Change In Net Unrealized Gains On Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Gain (Loss) on Investments [Line Items] | ||
Realized gains | $ 16,053 | $ 28,434 |
Realized losses | (4,083) | (11,832) |
Gains on securities measured at fair value through net income | 8,895 | 4,577 |
Other-than-temporary impairment losses recognized in net income | (3,213) | (8,405) |
Net realized investment gains | 20,865 | 21,179 |
Change in net unrealized gains on investments included in other comprehensive income | 223,572 | 336,847 |
Sales Of Fixed Maturity Securities [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Realized gains | 244 | 268 |
Realized losses | (231) | (413) |
Sales Of Equity Securities [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Realized gains | 15,239 | 27,728 |
Realized losses | (431) | (718) |
Other [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Realized gains | 570 | 438 |
Realized losses | (208) | (2,296) |
Fixed Maturity Securities [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Change in net unrealized gains on investments included in other comprehensive income | 4,647 | 239,956 |
Equity Securities [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Other-than-temporary impairment losses recognized in net income | (8,400) | |
Change in net unrealized gains on investments included in other comprehensive income | 219,052 | 96,958 |
Short-Term Investments [Member] | ||
Gain (Loss) on Investments [Line Items] | ||
Change in net unrealized gains on investments included in other comprehensive income | $ (127) | $ (67) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | ||
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 nonrecurring basis | 0 | 0 |
Liabilities measured at fair value on a nonrecurring basis | $ 0 | $ 0 |
Fair Value Measurements (Balanc
Fair Value Measurements (Balances Of Assets Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | $ 10,006,519 | $ 9,891,510 |
Total equity securities | 5,038,933 | 4,745,841 |
Short-term investments | 2,178,035 | 2,336,151 |
Available-for-sale investments, estimated fair value | 17,223,487 | 16,973,502 |
Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments, estimated fair value | 10,006,519 | 9,891,510 |
U.S. Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments, estimated fair value | 241,775 | 258,584 |
U.S. Government-Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments, estimated fair value | 402,000 | 423,212 |
Obligations Of States, Municipalities And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments, estimated fair value | 4,616,065 | 4,428,205 |
Foreign Governments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments, estimated fair value | 1,408,057 | 1,463,462 |
Commercial Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments, estimated fair value | 1,129,648 | 1,040,356 |
Residential Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments, estimated fair value | 809,426 | 790,946 |
Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments, estimated fair value | 26,631 | 27,338 |
Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments, estimated fair value | 1,372,917 | 1,459,407 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments, estimated fair value | 5,038,933 | 4,745,841 |
Insurance, Banks And Other Financial Institutions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments, estimated fair value | 1,754,610 | 1,697,810 |
Industrial, Consumer And All Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments, estimated fair value | 3,284,323 | 3,048,031 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 10,006,519 | 9,891,510 |
Total equity securities | 5,038,933 | 4,745,841 |
Short-term investments | 2,178,035 | 2,336,151 |
Available-for-sale investments, estimated fair value | 17,223,487 | 16,973,502 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Total equity securities | 4,860,890 | 4,554,638 |
Short-term investments | 2,094,369 | 2,255,898 |
Available-for-sale investments, estimated fair value | 6,955,259 | 6,810,536 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 10,006,519 | 9,891,510 |
Total equity securities | 0 | 0 |
Short-term investments | 83,666 | 80,253 |
Available-for-sale investments, estimated fair value | 10,090,185 | 9,971,763 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Total equity securities | 178,043 | 191,203 |
Short-term investments | 0 | 0 |
Available-for-sale investments, estimated fair value | 178,043 | 191,203 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 241,775 | 258,584 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 241,775 | 258,584 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | U.S. Government-Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 402,000 | 423,212 |
Fair Value, Measurements, Recurring [Member] | U.S. Government-Sponsored Enterprises [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | U.S. Government-Sponsored Enterprises [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 402,000 | 423,212 |
Fair Value, Measurements, Recurring [Member] | U.S. Government-Sponsored Enterprises [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 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] | ||
Total fixed maturity securities | 4,616,065 | 4,428,205 |
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] | ||
Total fixed maturity securities | 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] | ||
Total fixed maturity securities | 4,616,065 | 4,428,205 |
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] | ||
Total fixed maturity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Foreign Governments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 1,408,057 | 1,463,462 |
Fair Value, Measurements, Recurring [Member] | Foreign Governments [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 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] | ||
Total fixed maturity securities | 1,408,057 | 1,463,462 |
Fair Value, Measurements, Recurring [Member] | Foreign Governments [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 1,129,648 | 1,040,356 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 1,129,648 | 1,040,356 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 809,426 | 790,946 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 809,426 | 790,946 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 26,631 | 27,338 |
Fair Value, Measurements, Recurring [Member] | Asset-Backed [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Asset-Backed [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 26,631 | 27,338 |
Fair Value, Measurements, Recurring [Member] | Asset-Backed [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 1,372,917 | 1,459,407 |
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 1,372,917 | 1,459,407 |
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturity securities | 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] | ||
Total equity securities | 1,754,610 | 1,697,810 |
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] | ||
Total equity securities | 1,576,567 | 1,506,607 |
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] | ||
Total 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] | ||
Total equity securities | 178,043 | 191,203 |
Fair Value, Measurements, Recurring [Member] | Industrial, Consumer And All Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total equity securities | 3,284,323 | 3,048,031 |
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] | ||
Total equity securities | 3,284,323 | 3,048,031 |
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] | ||
Total 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] | ||
Total equity securities | $ 0 | $ 0 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Changes In Level 3 Investments Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Fair Value Disclosures [Abstract] | |||
Equity securities, beginning of period | $ 191,203 | $ 0 | |
Purchases | 6,000 | 170,250 | |
Sales | (25,371) | 0 | |
Total gains included in net income | 6,211 | 6,692 | |
Total gains included in other comprehensive income | 0 | 0 | |
Transfers into level 3 | 0 | 0 | |
Transfers out of level 3 | 0 | 0 | |
Equity securities, end of period | 178,043 | 176,942 | |
Net unrealized gains included in net income relating to assets held at March 31, 2017 and 2016 | [1] | $ 6,211 | $ 6,692 |
[1] | Included in net realized investment gains in the consolidated statements of income and comprehensive income. |
Segment Reporting Disclosures40
Segment Reporting Disclosures (Company's Segment Disclosures) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | ||
Segment Reporting Information [Line Items] | |||
Number of reportable ongoing underwriting segments | segment | 3 | ||
Gross premium volume | $ 1,460,751 | $ 1,392,663 | |
Net written premiums | 1,260,229 | 1,181,960 | |
Earned premiums | 982,602 | 957,686 | |
Losses and loss adjustment expenses, current accident year | (638,346) | (592,285) | |
Losses and loss adjustment expenses, prior accident years | 26,627 | 118,321 | |
Amortization of policy acquisition costs | (204,548) | (189,969) | |
Other operating expenses | (168,683) | (174,719) | |
Underwriting profit (loss) | (2,348) | 119,034 | |
Net investment income | 100,368 | 91,294 | |
Net realized investment gains | 20,865 | 21,179 | |
Other revenues (insurance) | 5,510 | 6,035 | |
Other expenses (insurance) | (10,168) | (10,279) | |
Segment profit (loss) | 114,227 | 227,263 | |
Other revenues (non-insurance) | 302,406 | 299,988 | |
Other expenses (non-insurance) | (272,417) | (264,814) | |
Amortization of intangible assets | (16,770) | (17,260) | |
Interest expense | (33,402) | (30,841) | |
Income Before Income Taxes | $ 94,044 | $ 214,336 | |
U.S. GAAP combined ratio | [1] | 100.00% | 88.00% |
U.S. Insurance [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross premium volume | $ 639,829 | $ 647,790 | |
Net written premiums | 545,105 | 552,745 | |
Earned premiums | 549,336 | 532,468 | |
Losses and loss adjustment expenses, current accident year | (346,306) | (316,333) | |
Losses and loss adjustment expenses, prior accident years | 42,620 | 38,654 | |
Amortization of policy acquisition costs | (112,966) | (108,004) | |
Other operating expenses | (93,375) | (89,459) | |
Underwriting profit (loss) | 39,309 | 57,326 | |
Net investment income | 0 | 0 | |
Net realized investment gains | 0 | 0 | |
Other revenues (insurance) | 663 | 1,419 | |
Other expenses (insurance) | (758) | (724) | |
Segment profit (loss) | $ 39,214 | $ 58,021 | |
U.S. GAAP combined ratio | [1] | 93.00% | 89.00% |
International Insurance [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross premium volume | $ 273,168 | $ 291,404 | |
Net written premiums | 225,412 | 226,399 | |
Earned premiums | 207,513 | 215,345 | |
Losses and loss adjustment expenses, current accident year | (146,430) | (145,476) | |
Losses and loss adjustment expenses, prior accident years | 50,266 | 29,652 | |
Amortization of policy acquisition costs | (34,723) | (34,272) | |
Other operating expenses | (52,275) | (54,334) | |
Underwriting profit (loss) | 24,351 | 10,915 | |
Net investment income | 0 | 0 | |
Net realized investment gains | 0 | 0 | |
Other revenues (insurance) | 3,995 | 4,121 | |
Other expenses (insurance) | (2,346) | (1,554) | |
Segment profit (loss) | $ 26,000 | $ 13,482 | |
U.S. GAAP combined ratio | [1] | 88.00% | 95.00% |
Reinsurance [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross premium volume | $ 547,737 | $ 453,486 | |
Net written premiums | 489,596 | 402,726 | |
Earned premiums | 225,637 | 209,619 | |
Losses and loss adjustment expenses, current accident year | (145,610) | (130,476) | |
Losses and loss adjustment expenses, prior accident years | (71,563) | 36,361 | |
Amortization of policy acquisition costs | (56,859) | (47,693) | |
Other operating expenses | (22,869) | (30,812) | |
Underwriting profit (loss) | (71,264) | 36,999 | |
Net investment income | 0 | 0 | |
Net realized investment gains | 0 | 0 | |
Other revenues (insurance) | 416 | 0 | |
Other expenses (insurance) | 0 | 0 | |
Segment profit (loss) | $ (70,848) | $ 36,999 | |
U.S. GAAP combined ratio | [1] | 132.00% | 82.00% |
Other Insurance (Discontinued Lines) [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross premium volume | $ 17 | $ (17) | |
Net written premiums | 116 | 90 | |
Earned premiums | 116 | 254 | |
Losses and loss adjustment expenses, current accident year | 0 | 0 | |
Losses and loss adjustment expenses, prior accident years | 5,304 | 13,654 | |
Amortization of policy acquisition costs | 0 | 0 | |
Other operating expenses | (164) | (114) | |
Underwriting profit (loss) | 5,256 | 13,794 | |
Net investment income | 0 | 0 | |
Net realized investment gains | 0 | 0 | |
Other revenues (insurance) | 436 | 495 | |
Other expenses (insurance) | (7,064) | (8,001) | |
Segment profit (loss) | $ (1,372) | $ 6,288 | |
U.S. GAAP combined ratio - not meaniningful | [1],[2] | NM | NM |
Investing [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross premium volume | $ 0 | $ 0 | |
Net written premiums | 0 | 0 | |
Earned premiums | 0 | 0 | |
Losses and loss adjustment expenses, current accident year | 0 | 0 | |
Losses and loss adjustment expenses, prior accident years | 0 | 0 | |
Amortization of policy acquisition costs | 0 | 0 | |
Other operating expenses | 0 | 0 | |
Underwriting profit (loss) | 0 | 0 | |
Net investment income | 100,368 | 91,294 | |
Net realized investment gains | 20,865 | 21,179 | |
Other revenues (insurance) | 0 | 0 | |
Other expenses (insurance) | 0 | 0 | |
Segment profit (loss) | $ 121,233 | $ 112,473 | |
[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. |
Segment Reporting Disclosures41
Segment Reporting Disclosures (Reconciliation Of Segment Assets To The Company's Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Assets | $ 26,400,679 | $ 25,875,299 |
Non-Insurance Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,460,234 | 1,448,019 |
Segment Assets [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 24,940,445 | 24,427,280 |
Segment Assets [Member] | Investing [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 19,299,203 | 19,029,584 |
Segment Assets [Member] | Underwriting [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 5,641,242 | $ 5,397,696 |
Unpaid Losses And Loss Adjust42
Unpaid Losses And Loss Adjustment Expenses (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Ceded reserves for losses and loss adjustment expenses on asbestos and environmental policies transferred to a third party by way of a Part VII transfer | $ 69,100 | |
Deferred gain related to the completion of the Part VII transfer | 3,900 | |
Favorable development related to the commutation of a property and casualty deposit contract | $ 11,700 | |
Favorable (adverse) development on prior years' loss reserves | 22,739 | 106,595 |
Net redundancies on prior years' loss reserves | $ 107,700 | |
Previous Ogden discount rate, percent | 2.50% | |
Current Ogden discount rate, percent | (0.75%) | |
Gen Liability And Workers Comp US Segment Gen Liability And Marine And Energy Intl Segment Property Reins Segment [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (adverse) development on prior years' loss reserves | $ 73,000 | |
Ogden Rate Change [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (adverse) development on prior years' loss reserves | $ (85,000) | |
Gen Liability US Segment Prof Liability And Marine And Energy Intl Segment Property And Marine And Energy And Prof Liability Reins Segment [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (adverse) development on prior years' loss reserves | 74,900 | |
Development On Specified Medical And Medical Malpractice [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (adverse) development on prior years' loss reserves | $ (21,800) |
Unpaid Losses And Loss Adjust43
Unpaid Losses And Loss Adjustment Expenses (Reconciliation Of Consolidated Reserves For Losses And Loss Adjustment Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract] | |||
Net reserves for losses and loss adjustment expenses, beginning of year | $ 8,108,717 | $ 8,235,288 | |
Foreign currency movements | 10,364 | 19,814 | |
Adjusted net reserves for losses and loss adjustment expenses, beginning of year | 8,119,081 | 8,255,102 | |
Incurred losses and loss adjustment expenses, current year | 638,346 | 592,285 | |
Incurred losses and loss adjustment expenses, prior years | (22,739) | (106,595) | |
Total incurred losses and loss adjustment expenses | 615,607 | 485,690 | |
Payments, current year | 57,514 | 36,990 | |
Payments, prior years | 486,163 | 493,554 | |
Total payments | 543,677 | 530,544 | |
Effect of foreign currency rate changes | (611) | 957 | |
Net reserves for losses and loss adjustment expenses, end of period | 8,190,400 | 8,211,205 | |
Reinsurance recoverable on unpaid losses | 1,949,278 | 2,046,301 | $ 2,006,945 |
Gross reserves for losses and loss adjustment expenses, end of period | $ 10,139,678 | $ 10,257,506 |
Other Revenues And Other Expe44
Other Revenues And Other Expenses (Summary Of Other Revenues And Other Expenses By Component) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other Revenues and Other Expenses [Line Items] | ||
Other revenues | $ 307,916 | $ 306,023 |
Other expenses | 282,585 | 275,093 |
Insurance Operations [Member] | ||
Other Revenues and Other Expenses [Line Items] | ||
Other revenues | 5,510 | 6,035 |
Other expenses | 10,168 | 10,279 |
Non-Insurance Operations [Member] | ||
Other Revenues and Other Expenses [Line Items] | ||
Other revenues | 302,406 | 299,988 |
Other expenses | 272,417 | 264,814 |
Managing General Agent Operations [Member] | Insurance Operations [Member] | ||
Other Revenues and Other Expenses [Line Items] | ||
Other revenues | 4,658 | 5,540 |
Other expenses | 1,853 | 2,278 |
Life And Annuity [Member] | Insurance Operations [Member] | ||
Other Revenues and Other Expenses [Line Items] | ||
Other revenues | 436 | 495 |
Other expenses | 7,064 | 8,001 |
Other Insurance [Member] | Insurance Operations [Member] | ||
Other Revenues and Other Expenses [Line Items] | ||
Other revenues | 416 | 0 |
Other expenses | 1,251 | 0 |
Manufacturing [Member] | Non-Insurance Operations [Member] | Markel Ventures Operations [Member] | ||
Other Revenues and Other Expenses [Line Items] | ||
Other revenues | 177,135 | 192,691 |
Other expenses | 153,653 | 160,366 |
Non-Manufacturing [Member] | Non-Insurance Operations [Member] | Markel Ventures Operations [Member] | ||
Other Revenues and Other Expenses [Line Items] | ||
Other revenues | 109,800 | 93,828 |
Other expenses | 97,611 | 88,433 |
Investment Management [Member] | Non-Insurance Operations [Member] | ||
Other Revenues and Other Expenses [Line Items] | ||
Other revenues | 9,359 | 7,173 |
Other expenses | 14,935 | 9,930 |
Other Non-Insurance [Member] | Non-Insurance Operations [Member] | ||
Other Revenues and Other Expenses [Line Items] | ||
Other revenues | 6,112 | 6,296 |
Other expenses | $ 6,218 | $ 6,085 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reinsurance Disclosures [Abstract] | ||
Percentage of ceded earned premiums to gross earned premiums | 16.00% | 17.00% |
Percentage of assumed earned premiums to net earned premiums | 31.00% | 30.00% |
Reinsurance recoverables | $ 99.6 | $ 130.6 |
Reinsurance (Effect Of Reinsura
Reinsurance (Effect Of Reinsurance And Retrocessional Reinsurance On Premiums Written And Earned) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reinsurance Disclosures [Abstract] | ||
Direct premiums written | $ 849,484 | $ 879,088 |
Direct premiums earned | 862,986 | 867,444 |
Assumed premiums written | 611,267 | 513,575 |
Assumed premiums earned | 307,569 | 290,063 |
Ceded premiums written | (200,522) | (210,703) |
Ceded premiums earned | (187,953) | (199,821) |
Net premiums written | 1,260,229 | 1,181,960 |
Net premiums earned | $ 982,602 | $ 957,686 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |||
Investment management fees earned by the Company from unconsolidated Funds | $ 307,916 | $ 306,023 | |
Total investment and insurance assets under management of MCIM for unconsolidated VIEs | 4,100,000 | ||
Markel Diversified Fund [Member] | |||
Variable Interest Entity [Line Items] | |||
Total assets of the Markel Diversified Fund | 181,200 | $ 166,800 | |
Total liabilities of the Markel Diversified Fund | 63,700 | 64,600 | |
Investment in one of the unconsolidated Funds | $ 177,400 | $ 165,100 | |
Percentage of total assets of the Markel Diversified Fund invested in one of the unconsolidated Funds | 6.00% | 6.00% | |
Note payable included in total liabilities of the Markel Diversified Fund delivered as part of the consideration provided for its investment | $ 62,500 | $ 62,500 | |
Non-Insurance Operations [Member] | |||
Variable Interest Entity [Line Items] | |||
Investment management fees earned by the Company from unconsolidated Funds | 302,406 | 299,988 | |
Investment Management [Member] | Non-Insurance Operations [Member] | |||
Variable Interest Entity [Line Items] | |||
Investment management fees earned by the Company from unconsolidated Funds | $ 9,359 | $ 7,173 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule Of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Line Items] | ||
Net income to shareholders | $ 69,869 | $ 160,370 |
Adjustment of redeemable noncontrolling interests | (15,143) | (3,452) |
Adjusted net income to shareholders | $ 54,726 | $ 156,918 |
Basic common shares outstanding | 13,998 | 13,994 |
Diluted shares outstanding | 14,046 | 14,074 |
Basic net income per share | $ 3.91 | $ 11.21 |
Diluted net income per share | $ 3.90 | $ 11.15 |
Stock Options [Member] | ||
Earnings Per Share [Line Items] | ||
Dilutive potential common shares | 2 | 5 |
Restricted Stock Units (RSUs) [Member] | ||
Earnings Per Share [Line Items] | ||
Dilutive potential common shares | 46 | 75 |
Other Comprehensive Income (Cha
Other Comprehensive Income (Change In Accumulated Other Comprehensive Income By Component, Net Of Taxes And Noncontrolling Interest) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income, beginning balance | $ 1,565,866 | $ 1,354,508 |
Other comprehensive income before reclassifications | 161,823 | 249,144 |
Amounts reclassified from accumulated other comprehensive income | (8,453) | (12,520) |
Total other comprehensive income | 153,370 | 236,624 |
Accumulated other comprehensive income, ending balance | 1,719,236 | 1,591,132 |
Unrealized Holding Gains On Available-For-Sale Securities [Member] | ||
Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income, beginning balance | 1,714,930 | 1,472,762 |
Other comprehensive income before reclassifications | 160,280 | 238,823 |
Amounts reclassified from accumulated other comprehensive income | (9,169) | (12,983) |
Total other comprehensive income | 151,111 | 225,840 |
Accumulated other comprehensive income, ending balance | 1,866,041 | 1,698,602 |
Foreign Currency [Member] | ||
Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income, beginning balance | (84,406) | (72,696) |
Other comprehensive income before reclassifications | 1,543 | 10,321 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Total other comprehensive income | 1,543 | 10,321 |
Accumulated other comprehensive income, ending balance | (82,863) | (62,375) |
Net Actuarial Pension Loss [Member] | ||
Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income, beginning balance | (64,658) | (45,558) |
Other comprehensive income before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 716 | 463 |
Total other comprehensive income | 716 | 463 |
Accumulated other comprehensive income, ending balance | $ (63,942) | $ (45,095) |
Other Comprehensive Income (Sum
Other Comprehensive Income (Summary Of Tax Expense (Benefit) Of Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Net holding gains arising during the period | $ 74,993 | $ 116,499 |
Change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period | 0 | (15) |
Reclassification adjustments for net gains included in net income | (2,532) | (5,477) |
Change in net unrealized gains on investments | 72,461 | 111,007 |
Change in foreign currency translation adjustments | (37) | (77) |
Change in net actuarial pension loss | 179 | 102 |
Total | $ 72,603 | $ 111,032 |
Other Comprehensive Income (Rec
Other Comprehensive Income (Reclassifications From Accumulated Other Comprehensive Income Into Income, By Component) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Other-than-temporary impairment losses recognized in net income | $ (3,213) | $ (8,405) |
Net realized investment gains, excluding other-than-temporary impairment losses | 24,078 | 29,584 |
Income Before Income Taxes | 94,044 | 214,336 |
Underwriting, acquisition and insurance expenses | (373,231) | (364,688) |
Income taxes | (23,004) | (50,690) |
Net Income | 71,040 | 163,646 |
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 | (3,213) | (8,405) |
Net realized investment gains, excluding other-than-temporary impairment losses | 14,914 | 26,865 |
Income Before Income Taxes | 11,701 | 18,460 |
Income taxes | (2,532) | (5,477) |
Net Income | 9,169 | 12,983 |
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 | (895) | (565) |
Income taxes | 179 | 102 |
Net Income | $ (716) | $ (463) |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) - Thomas Yeransian v. Markel Corporation [Member] $ in Millions | Mar. 31, 2017USD ($) |
Damages [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | $ 47.3 |
Interest [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | 10.1 |
Default Interest [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | $ 8.9 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - 7.20% Unsecured Senior Notes [Member] - USD ($) $ in Millions | Apr. 12, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||
Unsecured senior notes, principal outstanding | $ 90.6 | $ 90.6 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Debt instrument, interest rate | 7.20% |