Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 05, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
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 | 13,874,896 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 14,686,000,000 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Fixed maturities, available-for-sale (amortized cost of $9,950,773 in 2018 and $9,551,153 in 2017) | $ 10,043,188 | $ 9,940,670 |
Equity securities, available-for-sale (cost of $2,667,661 in 2017) | 0 | 5,967,847 |
Equity securities (cost of $2,971,856 in 2018) | 5,720,945 | 0 |
Short-term investments, available-for-sale (estimated fair value approximates cost) | 1,077,696 | 2,160,974 |
Total Investments | 16,841,829 | 18,069,491 |
Cash and cash equivalents | 2,014,168 | 2,198,459 |
Restricted cash and cash equivalents | 382,264 | 302,387 |
Receivables | 1,692,526 | 1,567,453 |
Reinsurance Recoverables | 5,221,947 | 4,745,390 |
Deferred policy acquisition costs | 474,513 | 465,569 |
Prepaid reinsurance premiums | 1,331,022 | 1,099,757 |
Goodwill | 2,237,975 | 1,777,464 |
Intangible assets | 1,726,196 | 1,355,681 |
Other assets | 1,383,823 | 1,223,365 |
Total Assets | 33,306,263 | 32,805,016 |
LIABILITIES AND EQUITY | ||
Unpaid losses and loss adjustment expenses | 14,276,479 | 13,584,281 |
Life and annuity benefits | 1,001,453 | 1,072,112 |
Unearned premiums | 3,611,028 | 3,308,779 |
Payables to insurance and reinsurance companies | 337,326 | 324,304 |
Senior long-term debt and other debt (estimated fair value of $3,030,000 in 2018 and $3,351,000 in 2017) | 3,009,577 | 3,099,230 |
Other liabilities | 1,796,036 | 1,748,460 |
Total Liabilities | 24,031,899 | 23,137,166 |
Redeemable noncontrolling interests | 174,062 | 166,269 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock | 3,392,993 | 3,381,834 |
Retained earnings | 5,782,310 | 3,776,743 |
Accumulated other comprehensive income (loss) | (94,650) | 2,345,571 |
Total Shareholders' Equity | 9,080,653 | 9,504,148 |
Noncontrolling interests | 19,649 | (2,567) |
Total Equity | 9,100,302 | 9,501,581 |
Total Liabilities and Equity | $ 33,306,263 | $ 32,805,016 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 9,950,773 | $ 9,551,153 |
Equity securities, available-for-sale, cost | 2,667,661 | |
Equity securities, cost | 2,971,856 | |
Senior long-term debt and other debt, estimated fair value | $ 3,030,000 | $ 3,351,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income (Loss) And Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
OPERATING REVENUES | |||||||
Earned premiums | $ 4,712,060 | $ 4,247,978 | $ 3,865,870 | ||||
Net investment income | 434,215 | 405,709 | 373,230 | ||||
Net investment gains (losses): | |||||||
Other-than-temporary impairment losses recognized in net income | 0 | (7,589) | (18,355) | ||||
Net realized investment gains (losses), excluding other-than-temporary impairment losses | (11,974) | 47,174 | 66,711 | ||||
Change in fair value of equity securities | [1] | (425,622) | (44,888) | 16,791 | |||
Net investment gains (losses) | (437,596) | [2] | (5,303) | [3] | 65,147 | [4] | |
Products Revenues | 1,497,523 | 951,012 | 885,473 | ||||
Services and other revenues | 635,083 | 462,263 | 422,306 | ||||
Total Operating Revenues | 6,841,285 | 6,061,659 | 5,612,026 | ||||
OPERATING EXPENSES | |||||||
Losses and loss adjustment expenses | 2,820,715 | 2,865,761 | 2,050,744 | ||||
Underwriting, acquisition and insurance expenses | 1,777,511 | 1,589,464 | 1,497,125 | ||||
Products expenses | 1,413,248 | [5] | 850,449 | [6] | 755,591 | [7] | |
Services and other expenses | 474,924 | [5] | 458,621 | [6] | 416,141 | [7] | |
Amortization of intangible assets | 115,930 | [8] | 80,758 | [9] | 68,533 | [10] | |
Impairment of Goodwill and Intangible Assets | 199,198 | 0 | 18,723 | ||||
Total Operating Expenses | 6,801,526 | 5,845,053 | 4,806,857 | ||||
Operating Income | 39,759 | 216,606 | 805,169 | ||||
Interest expense | 154,212 | 132,451 | 129,896 | ||||
Net foreign exchange losses (gains) | (106,598) | (3,140) | 1,253 | ||||
Loss on early extinguishment of debt | 0 | 0 | 44,100 | ||||
Income (Loss) Before Income Taxes | (7,855) | 87,295 | 629,920 | ||||
Income tax expense (benefit) | 122,498 | (313,463) | 169,477 | ||||
Net Income (loss) | (130,353) | 400,758 | 460,443 | ||||
Net income (loss) attributable to noncontrolling interests | (2,173) | 5,489 | 4,754 | ||||
Net Income (Loss) to Shareholders | [11] | (128,180) | 395,269 | 455,689 | |||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||
Net holding gains (losses) arising during the period | (241,325) | 787,339 | 275,661 | ||||
Change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period | 0 | 0 | 35 | ||||
Reclassification adjustments for net gains (losses) included in net income | 7,849 | (24,296) | (33,528) | ||||
Change in net unrealized gains on available-for-sale investments, net of taxes | (233,476) | 763,043 | 242,168 | ||||
Change in foreign currency translation adjustments, net of taxes | (16,495) | 10,449 | (11,704) | ||||
Change in net actuarial pension loss, net of taxes | 2,341 | 6,259 | (19,100) | ||||
Total Other Comprehensive Income (Loss) | (247,630) | 779,751 | 211,364 | ||||
Comprehensive Income (Loss) | (377,983) | 1,180,509 | 671,807 | ||||
Comprehensive income (loss) attributable to noncontrolling interests | (2,213) | 5,535 | 4,760 | ||||
Comprehensive Income (Loss) to Shareholders | $ (375,770) | $ 1,174,974 | $ 667,047 | ||||
NET INCOME (LOSS) PER SHARE | |||||||
Basic (dollars per share) | $ (9.55) | $ 25.89 | $ 31.41 | ||||
Diluted (dollars per share) | [12] | $ (9.55) | $ 25.81 | $ 31.27 | |||
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. Prior to adopting ASU No. 2016-01, the Company recorded certain investments in equity securities at estimated fair value with changes in fair value recorded in net income. | ||||||
[2] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment losses within net income. Prior periods have not been restated to conform to the current presentation. See note 1. | ||||||
[3] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment losses within net income. Prior periods have not been restated to conform to the current presentation. See note 1. | ||||||
[4] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment gains within net income. Prior periods have not been restated to conform to the current presentation. See note 1. | ||||||
[5] | Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $52.2 million for the year ended December 31, 2018. | ||||||
[6] | Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $41.7 million for the year ended December 31, 2017. | ||||||
[7] | Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $35.5 million for the year ended December 31, 2016. | ||||||
[8] | Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. | ||||||
[9] | Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. | ||||||
[10] | Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. | ||||||
[11] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. | ||||||
[12] | The impact of restricted stock units and restricted stock of 25 thousand shares was excluded from the computation of diluted earnings per share for the year ended December 31, 2018 because the effect would have been anti-dilutive. |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Equity - USD ($) $ 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] | Brahmin [Member]Redeemable Noncontrolling Interests [Member] | Nephila Holdings Limited [Member]Total Equity [Member] | Nephila Holdings Limited [Member]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 | 13,959,000 | ||||||||||
Balance, redeemable noncontrolling interests at Dec. 31, 2015 | $ 62,958 | ||||||||||
Net income (loss) | $ 460,443 | 455,788 | 455,689 | 455,689 | 0 | 99 | 4,655 | ||||
Other comprehensive income (loss) | 211,364 | 211,358 | 211,358 | 0 | 211,358 | 0 | 6 | ||||
Comprehensive Income (Loss) | 671,807 | 667,146 | 667,047 | 99 | 4,661 | ||||||
Issuance of common stock | 4,623 | 4,623 | $ 4,623 | 0 | 0 | 0 | 0 | ||||
Issuance of common stock, shares | 54,000 | ||||||||||
Repurchase of common stock | (51,142) | (51,142) | $ 0 | (51,142) | 0 | 0 | 0 | ||||
Repurchase of common stock, shares | (58,000) | ||||||||||
Restricted stock awards expensed | 21,336 | 21,336 | $ 21,336 | 0 | 0 | 0 | 0 | ||||
Restricted stock awards expensed, shares | 0 | ||||||||||
Adjustment of redeemable noncontrolling interests | (15,472) | (15,472) | $ 0 | (15,472) | 0 | 0 | 15,472 | ||||
Adjustment of redeemable noncontrolling interests, shares | 0 | ||||||||||
Purchase of noncontrolling interest | (350) | (350) | $ (350) | 0 | 0 | 0 | 3,517 | ||||
Purchase of noncontrolling interest, shares | 0 | ||||||||||
Other | (39) | 35 | $ 0 | 35 | 0 | (74) | (5,896) | ||||
Other, shares | 0 | ||||||||||
Balance at Dec. 31, 2016 | 8,467,411 | 8,460,927 | $ 3,368,666 | 3,526,395 | 1,565,866 | 6,484 | |||||
Balance, shares at Dec. 31, 2016 | 13,955,000 | ||||||||||
Balance, redeemable noncontrolling interests at Dec. 31, 2016 | 73,678 | ||||||||||
Net income (loss) | 400,758 | 394,374 | 395,269 | 395,269 | 0 | (895) | 6,384 | ||||
Other comprehensive income (loss) | 779,751 | 779,705 | 779,705 | 0 | 779,705 | 0 | 46 | ||||
Comprehensive Income (Loss) | 1,180,509 | 1,174,079 | 1,174,974 | (895) | 6,430 | ||||||
Issuance of common stock | 552 | 552 | $ 552 | 0 | 0 | 0 | 0 | ||||
Issuance of common stock, shares | 58,000 | ||||||||||
Repurchase of common stock | 110,838 | 110,838 | $ 0 | 110,838 | 0 | 0 | 0 | ||||
Repurchase of common stock, shares | 109,000 | ||||||||||
Restricted stock awards expensed | 15,881 | 15,881 | $ 15,881 | 0 | 0 | 0 | 0 | ||||
Restricted stock awards expensed, shares | 0 | ||||||||||
Acquisitions | 0 | 0 | $ 0 | 0 | 0 | 0 | 66,600 | ||||
Acquisition, shares | 0 | ||||||||||
Adjustment of redeemable noncontrolling interests | (33,738) | (33,738) | $ 0 | (33,738) | 0 | 0 | 33,738 | ||||
Adjustment of redeemable noncontrolling interests, shares | 0 | ||||||||||
Purchase of noncontrolling interest | (11,285) | (2,955) | $ (2,955) | 0 | 0 | (8,330) | (6,179) | ||||
Purchase of noncontrolling interest, shares | 0 | ||||||||||
Other | (481) | (655) | $ (310) | (345) | 0 | 174 | (7,998) | ||||
Other, shares | 0 | ||||||||||
Balance at Dec. 31, 2017 | 9,501,581 | 9,501,581 | 9,504,148 | $ 3,381,834 | 3,776,743 | 2,345,571 | (2,567) | ||||
Balance, shares at Dec. 31, 2017 | 13,904,000 | ||||||||||
Balance, redeemable noncontrolling interests at Dec. 31, 2017 | 166,269 | 166,269 | |||||||||
Net income (loss) | (130,353) | (129,355) | (128,180) | (128,180) | 0 | (1,175) | (998) | ||||
Other comprehensive income (loss) | (247,630) | (247,590) | (247,590) | 0 | (247,590) | 0 | (40) | ||||
Comprehensive Income (Loss) | (377,983) | (376,945) | (375,770) | (1,175) | (1,038) | ||||||
Issuance of common stock | 2 | 2 | $ 2 | 0 | 0 | 0 | 0 | ||||
Issuance of common stock, shares | 32,000 | ||||||||||
Repurchase of common stock | $ (39,000) | (54,007) | (54,007) | $ 0 | (54,007) | 0 | 0 | 0 | |||
Repurchase of common stock, shares | (35,174) | (48,000) | |||||||||
Restricted stock awards expensed | 16,191 | 16,191 | $ 16,191 | 0 | 0 | 0 | 0 | ||||
Restricted stock awards expensed, shares | 0 | ||||||||||
Acquisitions | 0 | 0 | $ 0 | 0 | 0 | 0 | 0 | $ 19,670 | $ 23,392 | $ 23,392 | |
Acquisition, shares | 0 | ||||||||||
Adjustment of redeemable noncontrolling interests | (4,828) | (4,828) | $ 0 | (4,828) | 0 | 0 | 4,828 | ||||
Adjustment of redeemable noncontrolling interests, shares | 0 | ||||||||||
Purchase of noncontrolling interest | (4,986) | (4,986) | $ (4,986) | 0 | 0 | 0 | (7,104) | ||||
Purchase of noncontrolling interest, shares | 0 | ||||||||||
Other | (423) | (422) | $ (48) | (374) | 0 | (1) | (8,563) | ||||
Other, shares | 0 | ||||||||||
Balance at Dec. 31, 2018 | $ 9,100,302 | $ 9,100,302 | $ 9,080,653 | $ 3,392,993 | $ 5,782,310 | $ (94,650) | $ 19,649 | ||||
Balance, shares at Dec. 31, 2018 | 13,888,000 | ||||||||||
Balance, redeemable noncontrolling interests at Dec. 31, 2018 | $ 174,062 | $ 174,062 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES | |||
Net Income (loss) | $ (130,353) | $ 400,758 | $ 460,443 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Deferred income tax expense (benefit) | 2,729 | (324,090) | 63,358 |
Depreciation and amortization | 227,846 | 203,871 | 194,147 |
Net realized investment losses (gains) | 437,596 | 5,303 | (65,147) |
Loss on early extinguishment of debt | 0 | 0 | 44,100 |
Net foreign exchange losses (gains) | (106,598) | (3,140) | 1,253 |
Impairment of Goodwill and Intangible Assets | 199,198 | 0 | 18,723 |
Increase in receivables | (27,961) | (38,259) | (163,123) |
Increase in deferred policy acquisition costs | (15,585) | (67,923) | (41,619) |
Increase (decrease) in unpaid losses and loss adjustment expenses, net | 298,796 | 619,305 | (9,429) |
Decrease in life and annuity benefits | (50,541) | (55,647) | (54,580) |
Increase in unearned premiums, net | 62,879 | 197,706 | 134,593 |
Increase (decrease) in payables to insurance and reinsurance companies | (4,313) | (40,761) | 11,582 |
Increase (decrease) in income taxes payable | 53,730 | (35,968) | (16,484) |
Increase (decrease) in accrued expenses | (23,756) | (71,669) | 67,994 |
Increase (decrease) in other liabilities | (5,637) | 45,051 | (90,571) |
Other | (25,173) | 23,992 | (20,617) |
Net Cash Provided By Operating Activities | 892,857 | 858,529 | 534,623 |
INVESTING ACTIVITIES | |||
Proceeds from sales of fixed maturities and equity securities | 419,199 | 577,650 | 365,822 |
Proceeds from maturities, calls and prepayments of fixed maturities | 551,808 | 1,129,895 | 963,165 |
Cost of fixed maturities and equity securities purchased | (1,545,913) | (1,176,281) | (2,205,939) |
Net change in short-term investments | 1,101,636 | 234,743 | (689,194) |
Additions to property and equipment | (106,593) | (74,652) | (63,674) |
Acquisitions, net of cash acquired | (1,175,211) | (1,431,712) | (7,527) |
Other | (42,165) | (4,100) | (1,134) |
Net Cash Provided (Used) By Investing Activities | (797,239) | (744,457) | (1,638,481) |
FINANCING ACTIVITIES | |||
Additions to senior long-term debt and other debt | 206,949 | 664,657 | 559,300 |
Repayment of senior long-term debt and other debt | (289,199) | (259,972) | (278,363) |
Premiums and fees related to early extinguishment of debt | 0 | 0 | (43,691) |
Repurchases of common stock | (54,007) | (110,838) | (51,142) |
Payment for Contingent Consideration | 15,914 | 5,018 | 14,219 |
Purchase of noncontrolling interests | (13,523) | (18,334) | (3,167) |
Distributions to noncontrolling interests | (9,164) | (7,899) | (5,949) |
Other | (4,127) | (6,281) | (10,750) |
Net Cash Provided (Used) By Financing Activities | (178,985) | 256,315 | 152,019 |
Effect of foreign currency rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (21,047) | 45,295 | (33,138) |
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | (104,414) | 415,682 | (984,977) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year | 2,500,846 | 2,085,164 | 3,070,141 |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS AT END OF YEAR | $ 2,396,432 | $ 2,500,846 | $ 2,085,164 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Markel Corporation is a diverse financial holding company serving a variety of niche markets. Markel Corporation's principal business markets and underwrites specialty insurance products. Through its wholly owned subsidiary, Markel Ventures, Inc. (Markel Ventures), Markel Corporation also owns interests in various businesses that operate outside of the specialty insurance marketplace. a) Basis of Presentation. The accompanying consolidated financial statements have been prepared in accordance with United States (U.S.) generally accepted accounting principles (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, with the exception of significant transactions or events that occur during the intervening period. Certain prior year amounts have been reclassified to conform to the current presentation. b) Use of Estimates. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Management periodically reviews its estimates and assumptions. Quarterly reviews include evaluating the adequacy of reserves for unpaid losses and loss adjustment expenses, life and annuity reinsurance benefit reserves and litigation contingencies. Estimates and assumptions for goodwill and intangible assets are reviewed in conjunction with an acquisition, and goodwill and indefinite-lived intangible assets are reassessed at least annually for impairment. Actual results may differ materially from the estimates and assumptions used in preparing the consolidated financial statements. c) Investments. Available-for-sale investments and equity securities are recorded at estimated fair value. Unrealized gains and losses on available-for-sale investments, net of income taxes, are included in accumulated other comprehensive income in shareholders' equity. The Company completes a detailed analysis each quarter to assess whether the decline in the fair value of any available-for-sale investment below its cost basis is deemed other-than-temporary. Premiums and discounts are amortized or accreted over the lives of the related fixed maturities as an adjustment to the yield using the effective interest method. Dividend and interest income are recognized when earned. Realized investment gains or losses are included in earnings. Realized gains or losses from sales of available-for-sale investments are derived using the first-in, first-out method on the trade date. Effective January 1, 2018, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities . Upon adoption of the ASU, equity securities are no longer classified as available-for-sale and unrealized gains and losses on equity securities, net of income taxes, are included in earnings. In accordance with the provisions of the ASU, prior periods have not been restated to conform to the new presentation. See note 1(w) for further discussion of the impact of prospectively adopting this standard. Investments accounted for under the equity method of accounting are recorded at cost within other assets on the consolidated balance sheets and subsequently increased or decreased by the Company's proportionate share of the net income or loss of the investee. The Company records its proportionate share of net income or loss of the investee in net investment income. The Company records its proportionate share of other comprehensive income or loss of the investee as a component of other comprehensive income. Dividends or other equity distributions in excess of the Company's cumulative equity in earnings of the investee are recorded as a reduction of the investment. The Company reviews equity method investments for impairment when events or circumstances indicate that a decline in the fair value of the investment below its carrying value is other-than-temporary. d) Cash and Cash Equivalents. The Company considers all investments with original maturities of 90 days or less to be cash equivalents. The carrying value of the Company's cash and cash equivalents approximates fair value. e) Restricted Cash and Cash Equivalents. Cash and cash equivalents that are restricted as to withdrawal or use are recorded as restricted cash and cash equivalents. The carrying value of the Company’s restricted cash and cash equivalents approximates fair value. f) Receivables. Receivables include amounts receivable from agents, brokers and insureds, which represent premiums that are both currently due and amounts not yet due on insurance and reinsurance policies. Premiums for insurance policies are generally due at inception. Premiums for reinsurance policies generally become due over the period of coverage based on the policy terms. The Company monitors the credit risk associated with premiums receivable, taking into consideration the fact that in certain instances credit risk may be reduced by the Company's right to offset loss obligations or unearned premiums against premiums receivable. Amounts deemed uncollectible are charged to net income in the period they are determined. Changes in the estimate of reinsurance premiums written will result in an adjustment to premiums receivable in the period they are determined. Receivables also include amounts receivable from contracts with customers, which represent the Company’s unconditional right to consideration for satisfying the performance obligations outlined in the contract. g) Reinsurance Recoverables. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured business. Allowances are established for amounts deemed uncollectible and reinsurance recoverables are recorded net of these allowances. The Company evaluates the financial condition of its reinsurers and monitors concentration risk to minimize its exposure to significant losses from individual reinsurers. h) Deferred Policy Acquisition Costs. Costs directly related to the acquisition of insurance premiums are deferred and amortized over the related policy period, generally one year . The Company only defers acquisition costs incurred that are related directly to the successful acquisition of new or renewal insurance contracts, including commissions to agents and brokers and premium taxes. Commissions received related to reinsurance premiums ceded are netted against broker commissions in determining acquisition costs eligible for deferral. To the extent that future policy revenues on existing policies are not adequate to cover related costs and expenses, deferred policy acquisition costs are charged to earnings. The Company does not consider anticipated investment income in determining whether a premium deficiency exists. i) Goodwill and Intangible Assets. Goodwill and intangible assets are recorded as a result of business acquisitions. Goodwill represents the excess of the amount paid to acquire a business over the net fair value of assets acquired and liabilities assumed at the date of acquisition. Indefinite-lived and other intangible assets are recorded at fair value as of the acquisition date. The determination of the fair value of certain assets acquired and liabilities assumed involves significant judgment and the use of valuation models and other estimates, which require assumptions that are inherently subjective. Goodwill and indefinite-lived intangible assets are tested for impairment at least annually. The Company completes an annual test during the fourth quarter of each year based upon the results of operations through September 30. Intangible assets with definite lives are amortized using the straight-line method over their estimated useful lives, generally five to 20 years , and are reviewed for impairment when events or circumstances indicate that their carrying value may not be recoverable. j) Property and Equipment. Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment are calculated using the straight-line method over the estimated useful lives (generally, the lower of the life of the lease or the estimated useful life for leasehold improvements, ten to 40 years for buildings, seven to 40 years for land improvements, three to ten years for furniture and equipment and three to 25 years for other property and equipment). k) Redeemable Noncontrolling Interests. The Company owns controlling interests in various companies through its Markel Ventures operations. In some cases, the Company has the option to acquire the remaining equity interests, and the remaining equity interests have the option to sell their interests to the Company, in the future. The redemption value of the remaining equity interests is generally based on the respective company's earnings in specified periods preceding the redemption date. The redeemable noncontrolling interests generally become redeemable through 2023. The Company recognizes changes in the redemption value that exceed the carrying value of redeemable noncontrolling interests to retained earnings as if the balance sheet date were also the redemption date. Changes in the redemption value also result in an adjustment to net income to shareholders in the calculation of basic and diluted net income per share. l) Income Taxes. The Company records deferred income taxes to reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when management believes it is more likely than not that some, or all, of the deferred tax assets will not be realized. The Company recognizes the tax benefit from an uncertain tax position taken or expected to be taken in income tax returns only if it is more likely than not that the tax position will be sustained upon examination by tax authorities, based on the technical merits of the position. Tax positions that meet the more likely than not threshold are then measured using a probability weighted approach, whereby the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement is recognized. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. m) Unpaid Losses and Loss Adjustment Expenses. Unpaid losses and loss adjustment expenses on the Company's property and casualty insurance business are based on evaluations of reported claims and estimates for losses and loss adjustment expenses incurred but not reported. Estimates for losses and loss adjustment expenses incurred but not reported are based on reserve development studies, among other things. Recorded reserves are estimates, and the ultimate liability may be greater or less than the estimates. n) Life and Annuity Benefits. The Company has a run-off block of life and annuity reinsurance contracts that subject the Company to mortality, longevity and morbidity risks. The assumptions used to determine policy benefit reserves are generally locked-in for the life of the contract unless an unlocking event occurs. To the extent existing policy reserves, together with the present value of future gross premiums and expected investment income earned thereon, are not adequate to cover the present value of future benefits, settlement and maintenance costs, the locked-in assumptions are revised to current best estimate assumptions and a charge to earnings for life and annuity benefits is recognized at that time. Because of the assumptions and estimates used in establishing reserves for life and annuity benefit obligations and the long-term nature of these reinsurance contracts, the ultimate liability may be greater or less than the estimates. Results attributable to the run-off of life and annuity reinsurance business are included in services and other revenues and services and other expenses in the Company's consolidated statements of income and comprehensive income. o) Revenue Recognition. Property and Casualty Premiums Insurance premiums written are generally recorded at the inception of a policy and earned on a pro rata basis over the policy period, typically one year . The cost of reinsurance ceded is initially recorded as prepaid reinsurance premiums and is amortized over the reinsurance contract period in proportion to the amount of insurance protection provided. Premiums ceded are netted against premiums written. For multi-year contracts where insurance premiums are payable in annual installments, written premiums are recorded at the inception of the contract based on management’s best estimate of total premiums to be received. For contracts where the cedent has the ability to unilaterally commute or cancel coverage within the term of the policy, premiums are generally recorded on an annual basis or up to the contract cancellation point. The remaining premiums are estimated and included as written at each successive anniversary date within the multi-year term. Assumed reinsurance premiums are recorded at the inception of each contract based upon contract terms and information received from cedents and brokers and are earned on a pro rata basis over the coverage period, or for multi-year contracts, in proportion with the underlying risk exposure to the extent there is variability in the exposure through the coverage period. Changes in reinsurance premium estimates are expected and may result in significant adjustments in any period. These estimates change over time as additional information regarding changes in underlying exposures is obtained. Any subsequent differences arising on such estimates are recorded as premiums written in the period they are determined and are earned on a pro rata basis over the coverage period. The Company uses the periodic method to account for assumed reinsurance from foreign reinsurers. The Company's foreign reinsurers provide sufficient information to record foreign assumed business in the same manner as the Company records assumed business from U.S. reinsurers. Certain contracts that the Company writes provide for reinstatement of coverage. Reinstatement premiums are the premiums for the restoration of the insurance or reinsurance limit of a contract to its full amount after a loss occurrence by the insured or reinsured. The Company accrues for reinstatement premiums resulting from losses recorded. Such accruals are based upon contractual terms and management judgment is involved with respect to the amount of losses recorded. Changes in estimates of losses recorded on contracts with reinstatement premium features will result in changes in reinstatement premiums based on contractual terms. Reinstatement premiums are recognized at the time losses are recorded and are generally earned on a pro rata basis over the coverage period. Products, Services and Other Revenues Effective January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , and related amendments, which created a new comprehensive revenue recognition standard, FASB Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers , that serves as a single source of revenue guidance for all contracts with customers to transfer goods or services or contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards, such as insurance contracts. ASC 606 is not applicable to the Company's insurance premium revenues or revenues from its investment portfolio but is applicable to most of the Company's other revenues, as described below. See note 1(w) for further discussion of the impact of adopting this standard. Other revenues primarily relate to the Company's Markel Ventures operations and consist of revenues from the sale of products and services. Revenues are recognized when, or as, control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. All contracts with customers either have an original expected length of one year or less or the Company recognizes revenue at the amount for which it has a right to invoice for the products delivered or services performed. Certain customers may receive volume rebates or credits for products and services, which are accounted for as variable consideration. The Company estimates these amounts based on the expected amount to be provided to the customer and reduces revenues recognized by a corresponding amount. The Company does not expect significant changes to its estimates of variable consideration over the term of the contracts. Payment terms for products and services vary by the type of product or service offered and the location of the customer, and payment is typically received at or shortly after the point of sale. For certain products, the Company requires partial payment in the form of a deposit before the products are delivered to the customer, which is included in other liabilities on the Company's consolidated balance sheet. Products revenues are primarily generated from the sale of equipment used in baking systems, portable dredges, over-the-road transportation equipment, flooring for the trucking industry, ornamental plants and residential homes. Most of the Company's product revenues are recognized when the products are shipped to the customer or the products arrive at the agreed upon destination with the end customer. Some of the Company's contracts include multiple performance obligations. For such arrangements, revenues are allocated to each performance obligation based on the relative standalone selling price, which is derived from amounts stated in the contract. Services revenues are primarily generated by delivering healthcare services, retail intelligence, consulting services and investment management services. Service revenues are generally recognized over the term of the contracts based on hours incurred or as services are provided. Investment management fee income is recognized over the period in which investment management services are provided and is calculated and recognized monthly based on the net asset value of the accounts managed. For certain accounts, the Company is also entitled to participate, on a fixed-percentage basis, in any net income generated in excess of an agreed-upon threshold as established by the underlying investment management agreements. In general, net income is calculated at the end of each calendar year and incentive fees are payable annually. Incentive fee income is recognized at the conclusion of the contractual performance period, when the uncertainty related to performance has been resolved. Program services fees received in exchange for providing access to the U.S. property and casualty insurance market are based on the gross premiums written on behalf of general agent and capacity provider clients. Program services fees are earned in a manner consistent with the recognition of the gross premiums earned on the underlying insurance policies, generally on a pro rata basis over the terms of the underlying policies reinsured. p) Program Services. In connection with its program services business, the Company enters into contractual agreements with both producing general agents and reinsurers, whereby the general agents and reinsurers are typically obligated to each other for payment of insurance amounts, including premiums, commissions and losses. To the extent these funds are not the obligation of the Company and are settled directly between the general agent and the reinsurer, no receivables or payables are recorded for these amounts. All obligations of the Company's insurance subsidiaries owed to or on behalf of their policyholders are recorded by the Company and, to the extent appropriate, offsetting reinsurance recoverables are recorded. q) Stock-based Compensation. Stock-based compensation expense is generally recognized as part of underwriting, acquisition and insurance expenses over the requisite service period. Stock-based compensation expense, net of taxes, was $13.0 million i n 2018 , $11.9 million in 2017 and $14.3 million in 2016 . See note 12 . r) Foreign Currency Transactions. The U.S. Dollar is the Company’s reporting currency and the primary functional currency of its foreign underwriting operations. The functional currencies of the Company's other foreign operations are the currencies of the primary economic environments in which the majority of their business is transacted. Foreign currency transaction gains and losses are the result of exchange rate changes on transactions denominated in currencies other than the functional currency at each foreign entity. Monetary assets and liabilities are remeasured to the functional currency at current exchange rates, with resulting gains and losses included in net foreign exchange losses (gains) within net income. Non-monetary assets and liabilities are remeasured to the functional currency at historic exchange rates. Available-for-sale securities are recorded at fair value with resulting gains and losses, including the portion attributable to movements in exchange rates, included in the change in net unrealized gains on available-for-sale investments, net of taxes within other comprehensive income. While we attempt to naturally hedge our exposure to foreign currency fluctuations by matching assets and liabilities in the same currencies, there is a financial statement mismatch between the gains or losses recorded in net income related to insurance reserves denominated in non-functional currencies and the gains or losses recorded in other comprehensive income related to the available-for-sale securities held in non-functional currencies supporting the reserves. Assets and liabilities of foreign operations denominated in a functional currency other than the U.S. Dollar are translated into the U.S. Dollar at current exchange rates, with resulting gains or losses included, net of taxes, in the change in foreign currency translation adjustments within other comprehensive income. Historically, the Company also designated certain additional currencies, including the British Pound Sterling, the Euro, and the Canadian Dollar, as functional currencies within its foreign underwriting operations that were deemed to contain distinct and separable operations in those foreign economic environments. However, over time the Company’s foreign underwriting operations have evolved and are now managed on a global basis. Effective January 1, 2018, management reassessed its functional currency determination as required by ASC 830, Foreign Currency Matters , and concluded that its foreign underwriting operations have evolved to function as an extension, or integral component, of the Company’s global underwriting operations, and are no longer deemed to contain distinct and separable operations. As a result, more foreign currency denominated transactions are designated as non-functional, with related remeasurement gains and losses included in net income. The change in the Company’s functional currency determination has been applied on a prospective basis in accordance with ASC 830. Therefore, any translation gains and losses that were previously recorded in accumulated other comprehensive income through December 31, 2017 remain unchanged as of December 31, 2018. s) Derivative Financial Instruments. Derivative instruments, including derivative instruments resulting from hedging activities, are measured at fair value and recognized as either assets or liabilities on the consolidated balance sheets. The changes in fair value of derivatives are recognized in earnings. t) Comprehensive Income. Comprehensive income represents all changes in equity that result from recognized transactions and other economic events during the period. Other comprehensive income refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive income but excluded from net income, such as unrealized gains or losses on available-for-sale investments, foreign currency translation adjustments and changes in net actuarial pension loss. u) Net Income Per Share. Basic net income per share is computed by dividing adjusted net income to shareholders by the weighted average number of common shares outstanding during the year. Diluted net income per share is computed by dividing adjusted net income to shareholders by the weighted average number of common shares and dilutive potential common shares outstanding during the year. See note 12 (b). v) Variable Interest Entities. The Company determines whether it has relationships with entities defined as VIEs in accordance with ASC 810, Consolidation . Under this guidance, a VIE is consolidated by the variable interest holder that is determined to be the primary beneficiary. An entity in which the Company holds a variable interest is a VIE if any of the following conditions exist: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) as a group, the holders of equity investment at risk lack either the direct or indirect ability through voting rights or similar rights to make decisions about an entity's activities that most significantly impact the entity's economic performance or the obligation to absorb the expected losses or right to receive the expected residual returns, or (c) the voting rights of some investors are disproportionate to their obligation to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity's activities either involve or are conducted on behalf of an investor with disproportionately few voting rights. The primary beneficiary is defined as the variable interest holder that is determined to have the controlling financial interest as a result of having both (a) the power to direct the activities of a VIE that most significantly impact the economic performance of the VIE and (b) the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether an entity is a VIE at the inception of its variable interest in the entity and upon the occurrence of certain reconsideration events. The Company continually reassesses whether it is the primary beneficiary of VIEs in which it holds a variable interest. w) Recent Accounting Pronouncements. Effective January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and several other ASUs that were issued as amendments to ASU No. 2014-09, which apply to all contracts with customers to transfer goods or services or for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. ASU No. 2014-09's core principle is that a company recognizes 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 adopting this standard, the Company is required to use more judgment and make more estimates than under the previous guidance, including 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. The Company adopted ASU No. 2014-09 using the modified retrospective method. Prior periods were not restated and the cumulative-effect of applying the new standard to all open contracts at January 1, 2018 was $0.3 million , and is included as an adjustment to 2018 beginning retained earnings. The Company's other revenues for the year ended December 31, 2018 and its receivables, other assets and other liabilities as of December 31, 2018 were not materially different from the amounts that would have been recognized under the previous guidance. ASU No. 2014-09 also requires expanded revenue disclosures which are included in note 21. Effective January 1, 2018, the Company adopted ASU No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities . As a result of adoption of this ASU, equity instruments that do not result in consolidation and are not accounted for under the equity method are measured at fair value and any changes in fair value are recognized in net income. Previously, the Company’s equity securities were classified as available-for-sale and changes in fair value were recorded in other comprehensive income. Upon adoption of this ASU, cumulative net unrealized gains on equity securities of $2.6 billion , net of deferred income taxes of $684.4 million , were reclassified from accumulated other comprehensive income into retained earnings. Prior periods have not been restated to conform to the current presentation. See note 3(f) for details regarding the change in net unrealized gains on equity securities included in net income for the year ended December 31, 2018 and included in other comprehensive income for the years ended December 31, 2017 and 2016 . Effective January 1, 2018, the Company early adopted ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU provides an option to reclassify tax effects remaining in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (TCJA) to retained earnings. Upon enactment of the TCJA, the U.S. corporate tax rate was reduced from 35% to 21% and the Company's U.S. deferred tax balances were remeasured to the lower enacted U.S. corporate tax rate. U.S. GAAP requires the effects of changes in tax rates and laws on deferred tax balances to be recorded as a component of income tax expense in the period of enactment, even if the assets and liabilities relate to items of accumulated other comprehensive income. As a result of adopting the ASU, the Company reclassified $402.9 million of previously recognized deferred taxes from accumulated other comprehensive income into retained earnings as of January 1, 2018. The following ASUs relate to topics relevant to the Company's operations and were adopted effective January 1, 2018. These ASUs did not have a material impact on the Company’s financial position, results of operations or cash flows: • ASU No. 2016-16, Income Taxes (Topic 740): Intra-entity Transfers of Assets Other Than Inventory • ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost • ASU No. 2017-09, Stock Compensation (Topic 718): Scope of Modification Accounting 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 FASB subsequently issued ASUs with improvements to the guidance, including ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , which provides entities with an additional transition method to apply the new standard. Under the new optional transition method, an entity initially applies ASC 842 at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The ASUs become effective for the Company during the first quarter of 2019 and will be applied using a modified retrospective approach. The Company intends to elect the new transition method |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Brahmin Leather Works, LLC In October 2018, the Company acquired 90% of Brahmin Leather Works, LLC (Brahmin), a Massachusetts-based privately held creator of fashion leather handbags. Total consideration for the acquisition was $193.8 million , which included cash consideration of $173.3 million . Total consideration also includes the estimated fair value of contingent consideration the Company expects to pay based on Brahmin’s earnings as defined in the purchase agreement, for the period of 2019 through 2021. The purchase price was preliminarily allocated to the acquired assets and liabilities of Brahmin based on estimated fair values at the acquisition date. The Company preliminarily recognized goodwill of $72.9 million , which is primarily attributable to expected future earnings and cash flow potential of Brahmin. The majority of the goodwill recognized is expected to be deductible for income tax purposes. The Company also preliminarily recognized other intangible assets of $81.3 million , which includes $45.0 million of customer relationships, $35.0 million of trade names and $1.3 million of other intangible assets, which are expected to be amortized over a weighted average period of 16 years , 16 years and 8 years , respectively. The Company also recognized redeemable non-controlling interests of $19.6 million . Results attributable to Brahmin are included in the Company’s Markel Ventures segment. The Company has not completed the process of determining the fair value of the assets acquired and liabilities assumed. These valuations will be completed within the measurement period, which cannot exceed 12 months from the acquisition date. As a result, the fair value recorded for these items is a provisional estimate and may be subject to adjustment. Once completed, any adjustments resulting from the valuations may impact the individual amounts recorded for assets acquired and liabilities assumed, as well as the residual goodwill. Nephila Holdings Ltd. In November 2018, the Company acquired all of the outstanding shares of Nephila Holdings Ltd. (Nephila), a Bermuda-based investment fund manager offering a broad range of investment products, including insurance-linked securities, catastrophe bonds, insurance swaps and weather derivatives. Nephila generates revenue primarily through management and incentive fees. Total consideration for the acquisition was $972.6 million , all of which was cash consideration. The purchase price was allocated to the acquired assets and liabilities of Nephila based on estimated fair values at the acquisition date. The Company preliminarily recognized goodwill of $474.9 million , which is primarily attributable to expected future earnings and cash flow potential of Nephila. None of the goodwill recognized is expected to be deductible for income tax purposes. The Company also preliminarily recognized other intangible assets of $516.8 million , which includes $441.0 million of investment management agreements, $31.0 million of broker relationships, $22.8 million of technology and $22.0 million of trade names, which are expected to be amortized over a weighted average period of 16 years , 12 years , 6 years and 14 years , respectively. The Company also recognized noncontrolling interests of $23.4 million attributable to certain consolidated subsidiaries of Nephila that are not wholly-owned. Nephila operates as a separate business unit and its operating results are not included in a reportable segment. The Company has not completed the process of determining the fair value of the assets acquired and liabilities assumed. These valuations will be completed within the measurement period, which cannot exceed 12 months from the acquisition date. As a result, the fair value recorded for these items is a provisional estimate and may be subject to adjustment. Once completed, any adjustments resulting from the valuations may impact the individual amounts recorded for assets acquired and liabilities assumed, as well as the residual goodwill. SureTec Financial Corp. In April 2017, the Company completed the acquisition of SureTec Financial Corp. (SureTec), a Texas-based privately held surety company primarily offering contract, commercial and court bonds. Results attributable to this acquisition are included in the Insurance segment. Total consideration for this acquisition was $246.9 million , which included cash consideration of $225.6 million . Total consideration also includes the estimated fair value of contingent consideration the Company expects to pay based on SureTec's earnings, as defined in the merger agreement, for the years 2017 through 2020. The purchase price was allocated to the acquired assets and liabilities of SureTec based on estimated fair values on the acquisition date. The Company recognized goodwill of $70.4 million , which is primarily attributable to synergies that are expected to result upon integration of SureTec into the Company's insurance operations. None of the goodwill recognized is deductible for income tax purposes. The Company also recognized other intangible assets of $103.0 million , which includes $92.0 million of agent relationships to be amortized over a weighted average period of 15 years . Costa Farms Companies In August 2017, the Company acquired 81% of the holding company for the Costa Farms companies (Costa Farms), a Florida-based privately held grower of house and garden plants. Under the terms of the acquisition agreement, the Company has the option to acquire the remaining equity interests and the remaining equity interests have the option to sell their interests to the Company in the future. The redemption value of the remaining equity interests is generally based on Costa Farm's earnings in specified periods preceding the redemption date. Total consideration for the purchase was $417.2 million , which included cash consideration of $387.9 million . Total consideration also included $29.3 million of contingent consideration, which represented the Company's initial estimate of the fair value of the contingent consideration the Company expected to pay based on Costa Farms' earnings, as defined in the purchase agreement, annually through 2021. Subsequent changes in the Company's expectation of the contingent consideration obligation are recorded as operating expenses in the consolidated statement of income and comprehensive income. Operating expenses for the year ended December 31, 2017 included $19.0 million related to an increase in the Company's estimate of the contingent consideration obligation, which now reflects the maximum amount of contingent consideration payable under the purchase agreement. The purchase price was allocated to the acquired assets and liabilities of Costa Farms based on estimated fair values at the acquisition date. The Company recognized goodwill of $186.2 million , which is primarily attributable to expected future earnings and cash flow potential of Costa Farms. The majority of the goodwill recognized is deductible for income tax purposes. The Company also recognized other intangible assets of $192.0 million , which includes $161.0 million of customer relationships and $31.0 million of trade names, which are expected to be amortized over a weighted average period of 17 years and nine years , respectively. The Company also recognized redeemable non-controlling interests of $66.6 million . Results attributable to this acquisition are included in the Company's Markel Ventures segment. State National Companies, Inc. In November 2017, the Company completed its acquisition of 100% of the issued and outstanding common stock of State National Companies, Inc. (State National), a Texas-based leading specialty provider of property and casualty insurance that includes both fronting services and collateral protection insurance coverage. Results attributable to State National's collateral protection insurance coverages are included in the Insurance segment. Results attributable to State National's program services business are not included in a reportable segment. Pursuant to the terms of the merger agreement, State National stockholders received $21.00 cash for each outstanding share of State National common stock (other than certain performance-based restricted shares that did not vest in connection with the transaction). Total consideration for this acquisition was $918.8 million , all of which was cash consideration. As of December 31, 2017, the purchase price was preliminarily allocated to the acquired assets and liabilities of State National based on estimated fair value at the acquisition date. During the first quarter of 2018, the Company completed the process of determining the fair value of the assets and liabilities acquired with State National. The Company recognized goodwill of $379.2 million , none of which is deductible for income tax purposes. The goodwill is attributable to the Company's ability to achieve future revenue growth from new customers and the continued enhancement of State National's existing technology. Goodwill is also attributable to State National's assembled workforce and synergies associated with the integration of State National into the Company's insurance operations and investing activities. The Company also recognized indefinite lived intangible assets of $32.0 million and other intangible assets of $338.5 million , which are being amortized over a weighted average period of 13 years . The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. (dollars in thousands) ASSETS Investments $ 395,940 Cash and cash equivalents 77,302 Restricted cash and cash equivalents 25,545 Receivables 147,256 Prepaid reinsurance premiums 808,331 Reinsurance recoverables 2,075,734 Other assets 83,721 LIABILITIES Unpaid losses and loss adjustment expenses 2,086,621 Unearned premiums 825,529 Payables to insurance and reinsurance companies 122,203 Senior long-term debt and other debt 44,500 Other liabilities 365,826 Net assets 169,150 Goodwill 379,150 Intangible assets 370,500 Acquisition date fair value $ 918,800 Other liabilities included an increase of $64.5 million to reflect the risk premium for program services business, which is attributed to the net capital charges arising from the gross and ceded unpaid losses and loss adjustment expenses and unearned premium balances at the acquisition date. This adjustment will be amortized to other expenses over a weighted average period of three years , based on the estimated payout pattern of net unpaid losses and loss adjustment expenses as of the acquisition date. As of December 31, 2018 and 2017, the amount of the unamortized fair value adjustment included in other liabilities was $35.3 million and $57.7 million , respectively. Other liabilities also included a decrease of $28.3 million to adjust the carrying value of State National's historical deferred program services fees to fair value as of the acquisition date. The fair value of deferred program services fees is based on the cost of fulfilling the obligation plus a normal profit margin. The adjustment was amortized to service and other expenses over the life of the underlying business, which was a weighted average period of one year . As of December 31, 2017, the amount of the unamortized fair value adjustment included in other liabilities was $19.3 million . As of December 31, 2018 , this fair value adjustment was fully amortized. The following table summarizes the intangible assets recorded in connection with the acquisition, and as of December 31, 2018 . (dollars in thousands) Amount Economic Useful Life Customer relationships $ 289,000 13 years Trade names 22,500 13 years Technology 27,000 Nine years Insurance licenses 32,000 Indefinite Intangible assets, before amortization, as of the Acquisition Date 370,500 Amortization (from the Acquisition Date through December 31, 2018) 32,336 Net intangible assets as of December 31, 2018 $ 338,164 Customer relationships represent lender relationships, fronting relationships and other relationships through which State National conducted its operations. The fair value of customer relationships was estimated using the income approach. Critical inputs into the valuation model for customer relationships include estimates of expected premium and attrition rates, and discounting at a weighted average cost of capital. Technology represents intangible assets related to State National's proprietary insurance systems and was valued using the income approach. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
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. December 31, 2018 (dollars in thousands) Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Estimated Fair Value Fixed maturities: U.S. Treasury securities $ 248,286 $ 308 $ (1,952 ) $ 246,642 U.S. government-sponsored enterprises 357,765 5,671 (4,114 ) 359,322 Obligations of states, municipalities and political subdivisions 4,285,068 96,730 (28,868 ) 4,352,930 Foreign governments 1,482,826 98,356 (21,578 ) 1,559,604 Commercial mortgage-backed securities 1,691,572 3,154 (44,527 ) 1,650,199 Residential mortgage-backed securities 886,501 6,170 (12,499 ) 880,172 Asset-backed securities 19,614 7 (213 ) 19,408 Corporate bonds 979,141 13,234 (17,464 ) 974,911 Total fixed maturities 9,950,773 223,630 (131,215 ) 10,043,188 Short-term investments 1,080,027 443 (2,774 ) 1,077,696 Investments, available-for-sale $ 11,030,800 $ 224,073 $ (133,989 ) $ 11,120,884 December 31, 2017 (dollars in thousands) Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Estimated Fair Value Fixed maturities: U.S. Treasury securities $ 162,378 $ 54 $ (1,819 ) $ 160,613 U.S. government-sponsored enterprises 352,455 11,883 (818 ) 363,520 Obligations of states, municipalities and political subdivisions 4,381,358 193,120 (7,916 ) 4,566,562 Foreign governments 1,341,628 150,010 (2,410 ) 1,489,228 Commercial mortgage-backed securities 1,244,777 6,108 (16,559 ) 1,234,326 Residential mortgage-backed securities 846,916 14,115 (4,863 ) 856,168 Asset-backed securities 34,942 8 (222 ) 34,728 Corporate bonds 1,186,699 51,563 (2,737 ) 1,235,525 Total fixed maturities 9,551,153 426,861 (37,344 ) 9,940,670 Equity securities: (1) Insurance, banks and other financial institutions 899,324 1,209,162 (5,453 ) 2,103,033 Industrial, consumer and all other 1,768,337 2,110,959 (14,482 ) 3,864,814 Total equity securities 2,667,661 3,320,121 (19,935 ) 5,967,847 Short-term investments 2,161,017 26 (69 ) 2,160,974 Investments, available-for-sale $ 14,379,831 $ 3,747,008 $ (57,348 ) $ 18,069,491 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See note 1. b) The following tables summarize gross unrealized investment losses on available-for-sale investments by the length of time that securities have continuously been in an unrealized loss position. December 31, 2018 Less than 12 months 12 months or longer Total (dollars in thousands) Estimated Fair Value Gross Estimated Fair Value Gross Estimated Fair Value Gross Losses Fixed maturities: U.S. Treasury securities $ 2,922 $ (83 ) $ 156,352 $ (1,869 ) $ 159,274 $ (1,952 ) U.S. government-sponsored enterprises 88,854 (1,923 ) 96,337 (2,191 ) 185,191 (4,114 ) Obligations of states, municipalities and political subdivisions 656,573 (12,455 ) 453,736 (16,413 ) 1,110,309 (28,868 ) Foreign governments 419,764 (14,461 ) 84,776 (7,117 ) 504,540 (21,578 ) Commercial mortgage-backed securities 653,410 (10,128 ) 709,971 (34,399 ) 1,363,381 (44,527 ) Residential mortgage-backed securities 276,777 (3,685 ) 242,949 (8,814 ) 519,726 (12,499 ) Asset-backed securities 1,645 (11 ) 17,030 (202 ) 18,675 (213 ) Corporate bonds 313,164 (10,965 ) 222,761 (6,499 ) 535,925 (17,464 ) Total fixed maturities 2,413,109 (53,711 ) 1,983,912 (77,504 ) 4,397,021 (131,215 ) Short-term investments 197,643 (2,774 ) — — 197,643 (2,774 ) Total $ 2,610,752 $ (56,485 ) $ 1,983,912 $ (77,504 ) $ 4,594,664 $ (133,989 ) At December 31, 2018 , the Company held 1,005 available-for-sale securities with a total estimated fair value of $4.6 billion and gross unrealized losses of $134.0 million . Of these 1,005 securities, 541 securities had been in a continuous unrealized loss position for one year or longer and had a total estimated fair value of $2.0 billion and gross unrealized losses of $77.5 million . The Company does not intend to sell or believe it will be required to sell these available-for-sale securities before recovery of their amortized cost. December 31, 2017 Less than 12 months 12 months or longer Total (dollars in thousands) Estimated Fair Value Gross Estimated Fair Value Gross Estimated Fair Value Gross Fixed maturities: U.S. Treasury securities $ 78,756 $ (659 ) $ 78,298 $ (1,160 ) $ 157,054 $ (1,819 ) U.S. government-sponsored enterprises 11,593 (79 ) 89,194 (739 ) 100,787 (818 ) Obligations of states, municipalities and political subdivisions 80,654 (789 ) 404,814 (7,127 ) 485,468 (7,916 ) Foreign governments 31,752 (452 ) 63,406 (1,958 ) 95,158 (2,410 ) Commercial mortgage-backed securities 253,936 (1,980 ) 481,216 (14,579 ) 735,152 (16,559 ) Residential mortgage-backed securities 157,508 (1,345 ) 148,960 (3,518 ) 306,468 (4,863 ) Asset-backed securities 14,263 (123 ) 15,165 (99 ) 29,428 (222 ) Corporate bonds 149,345 (863 ) 187,754 (1,874 ) 337,099 (2,737 ) Total fixed maturities 777,807 (6,290 ) 1,468,807 (31,054 ) 2,246,614 (37,344 ) Equity securities: (1) Insurance, banks and other financial institutions 60,848 (4,843 ) 1,291 (610 ) 62,139 (5,453 ) Industrial, consumer and all other 78,552 (11,798 ) 11,243 (2,684 ) 89,795 (14,482 ) Total equity securities 139,400 (16,641 ) 12,534 (3,294 ) 151,934 (19,935 ) Short-term investments 369,104 (69 ) — — 369,104 (69 ) Total $ 1,286,311 $ (23,000 ) $ 1,481,341 $ (34,348 ) $ 2,767,652 $ (57,348 ) (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See note 1. At December 31, 2017 , the Company held 739 securities with a total estimated fair value of $2.8 billion and gross unrealized losses of $57.3 million . Of these 739 securities, 272 securities had been in a continuous unrealized loss position for one year or longer and had a total estimated fair value of $1.5 billion and gross unrealized losses of $34.3 million . Of these securities, 258 securities were fixed maturities and 14 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 available-for-sale 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 fixed maturities, the Company considers whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery, the implied yield-to-maturity, the credit quality of the issuer and the ability to recover all amounts outstanding when contractually due. For fixed maturities where the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, a decline in fair value is considered to be other-than-temporary and is recognized in net income based on the fair value of the security at the time of assessment, resulting in a new cost basis for the security. If the decline in fair value of a fixed maturity below its amortized cost is considered to be other-than-temporary based upon other considerations, the Company compares the estimated present value of the cash flows expected to be collected to the amortized cost of the security. The extent to which the estimated present value of the cash flows expected to be collected is less than the amortized cost of the security represents the credit-related portion of the other-than-temporary impairment, which is recognized in net income, resulting in a new cost basis for the security. Any remaining decline in fair value represents the non-credit portion of the other-than-temporary impairment, which is recognized in other comprehensive income. Prior to the adoption of ASU No. 2016-01, equity securities were considered available-for-sale and were included in the analysis of other than temporary impairments. For equity securities, the ability and intent to hold the security for a period of time sufficient to allow for anticipated recovery was considered. A decline in fair value of equity securities that was considered to be other-than-temporary was 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. c) The amortized cost and estimated fair value of fixed maturities at December 31, 2018 are shown below by contractual maturity. (dollars in thousands) Amortized Cost Estimated Fair Value Due in one year or less $ 377,745 $ 376,564 Due after one year through five years 1,293,384 1,298,995 Due after five years through ten years 2,103,596 2,137,866 Due after ten years 3,578,361 3,679,984 7,353,086 7,493,409 Commercial mortgage-backed securities 1,691,572 1,650,199 Residential mortgage-backed securities 886,501 880,172 Asset-backed securities 19,614 19,408 Total fixed maturities $ 9,950,773 $ 10,043,188 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, and the lenders may have the right to put the securities back to the borrower. Based on expected maturities, the estimated average duration of fixed maturities at December 31, 2018 was 6.1 years . d) The following table presents the components of net investment income. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Interest: Municipal bonds (tax-exempt) $ 80,016 $ 87,768 $ 88,654 Municipal bonds (taxable) 73,058 70,771 65,749 Other taxable bonds 159,329 145,085 144,752 Short-term investments, including overnight deposits 48,765 26,772 11,177 Dividends on equity securities 90,840 82,096 70,577 Income (loss) from equity method investments (1,924 ) 11,076 6,852 Other 881 (828 ) 2,676 450,965 422,740 390,437 Investment expenses (16,750 ) (17,031 ) (17,207 ) Net investment income $ 434,215 $ 405,709 $ 373,230 e) Cumulative credit losses recognized in net income on fixed maturities where other-than-temporary impairment was identified and a portion of the other-than-temporary impairment was included in other comprehensive income were $10.7 million for the year ended December 31, 2016 . There were no such losses included in other comprehensive income (loss) for the years ended December 31, 2018 and 2017 . f) The following table presents net investment gains (losses) and the change in net unrealized gains on available-for-sale investments. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Realized gains: Sales and maturities of fixed maturities $ 4,221 $ 5,525 $ 5,160 Sales of equity securities (1) — 40,113 70,177 Sales and maturities of short-term investments 1,604 — — Other 1,281 6,644 1,415 Total realized gains 7,106 52,282 76,752 Realized losses: Sales and maturities of fixed maturities (5,768 ) (1,983 ) (704 ) Sales of equity securities (1) — (1,830 ) (6,988 ) Sales and maturities of short-term investments (10,545 ) (699 ) (522 ) Other-than-temporary impairments — (7,589 ) (18,355 ) Other (2,767 ) (596 ) (1,827 ) Total realized losses (19,080 ) (12,697 ) (28,396 ) Net realized investment gains (losses) (11,974 ) 39,585 48,356 Change in fair value of equity securities: (1) Change in fair value of equity securities sold during the period 20,177 6,989 (3,990 ) Change in fair value of equity securities held at the end of the period (445,799 ) (51,877 ) 20,781 Change in fair value of equity securities (1) (425,622 ) (44,888 ) 16,791 Net investment gains (losses) $ (437,596 ) $ (5,303 ) $ 65,147 Change in net unrealized gains on available-for-sale investments included in other comprehensive income (loss): Fixed maturities $ (297,158 ) $ 89,741 $ (56,534 ) Equity securities (1) — 1,035,793 398,752 Short-term investments (2,288 ) (94 ) (107 ) Net increase (decrease) $ (299,446 ) $ 1,125,440 $ 342,111 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. Prior to adopting ASU No. 2016-01, the Company recorded certain investments in equity securities at estimated fair value with changes in fair value recorded in net income. g) Total restricted assets are included on the Company's consolidated balance sheets as follows. December 31, (dollars in thousands) 2018 2017 Investments $ 4,781,566 $ 4,672,073 Restricted cash and cash equivalents 382,264 302,387 Total $ 5,163,830 $ 4,974,460 The following table presents the components of restricted assets. December 31, (dollars in thousands) 2018 2017 Restricted assets held in trust or on deposit to support underwriting activities $ 4,780,613 $ 4,624,998 Investments and cash and cash equivalents pledged as security for letters of credit 383,217 349,462 Total $ 5,163,830 $ 4,974,460 h) At December 31, 2018 and 2017 , investments in securities issued by the U.S. Treasury, U.S. government agencies and U.S. government-sponsored enterprises were the only investments in any one issuer that exceeded 10% of shareholders' equity. At December 31, 2018 , the Company's ten largest equity holdings represented $2.3 billion , or 41% , of the equity portfolio. Investments in the property and casualty insurance industry represented $1.0 billion , or 18% , of the equity portfolio at December 31, 2018 . Investments in the property and casualty insurance industry included a $645.9 million investment in the common stock of Berkshire Hathaway Inc. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Receivables | Receivables The following table presents the components of receivables. December 31, (dollars in thousands) 2018 2017 Amounts receivable from agents, brokers and insureds $ 1,327,549 $ 1,281,366 Trade accounts receivable 226,282 181,666 Notes receivable 40,375 528 Program services fees receivable 24,787 22,767 Employee stock loans receivable (see note 12(c)) 19,227 18,499 Investment management and incentive fees receivable 16,744 5,796 Insurance proceeds receivable — 39,196 Other 53,140 31,410 1,708,104 1,581,228 Allowance for doubtful receivables (15,578 ) (13,775 ) Receivables $ 1,692,526 $ 1,567,453 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs The following table presents the amounts of policy acquisition costs deferred and amortized. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Balance, beginning of year $ 465,569 $ 392,410 $ 352,756 Policy acquisition costs deferred 1,024,888 964,755 823,840 Amortization of policy acquisition costs (1,009,303 ) (894,353 ) (782,221 ) Foreign currency movements (6,641 ) 2,757 (1,965 ) Deferred policy acquisition costs $ 474,513 $ 465,569 $ 392,410 The following table presents the components of underwriting, acquisition and insurance expenses. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Amortization of policy acquisition costs $ 1,009,303 $ 894,353 $ 782,221 Other operating expenses 768,208 695,111 714,904 Underwriting, acquisition and insurance expenses $ 1,777,511 $ 1,589,464 $ 1,497,125 |
Property And Equipment
Property And Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment | Property and Equipment The following table presents the components of property and equipment, which are included in other assets on the consolidated balance sheets. December 31, (dollars in thousands) 2018 2017 Land $ 72,011 $ 66,885 Buildings 137,095 119,729 Leasehold improvements 108,973 98,246 Land improvements 93,545 89,444 Furniture and equipment 392,060 341,450 Other 227,356 196,465 1,031,040 912,219 Accumulated depreciation and amortization (479,498 ) (410,602 ) Property and equipment $ 551,542 $ 501,617 Depreciation and amortization expense of property and equipment was $80.9 million , $71.6 million and $64.8 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The Company does not own any individually material properties. The Company leases substantially all of the facilities used by its insurance operations and certain furniture and equipment under operating leases. The Company leases offices for the Insurance segment in Glen Allen, Virginia, London, England and in 63 other locations. The Company leases offices for the Reinsurance segment primarily in Summit, New Jersey and Hamilton, Bermuda. The Company either owns or leases office, clinic, manufacturing, warehouse and distribution facilities for the Markel Ventures segment in 96 locations, primarily in the U.S. The Company also leases offices for its other operations in Hamilton, Bermuda, London, England and in 13 other locations. The Company believes its facilities are suitable and adequate for the Company's operations. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Goodwill and Intangible Assets The following table presents the components of goodwill by reportable segment. Prior year amounts have been recast for consistency with the current year presentation. (dollars in thousands) Insurance Reinsurance Markel Ventures Other (1) Total January 1, 2017 $ 672,763 $ 122,745 $ 237,767 $ 108,973 $ 1,142,248 Acquisitions (see note 2) 93,123 — 186,194 347,418 626,735 Foreign currency movements and other adjustments 5,935 — 1,020 1,526 8,481 December 31, 2017 (2) $ 771,821 $ 122,745 $ 424,981 $ 457,917 $ 1,777,464 Acquisitions (see note 2) — — 73,174 474,901 548,075 Impairment of goodwill — — — (91,910 ) (91,910 ) Foreign currency movements and other adjustments (1,637 ) — (817 ) 6,800 4,346 December 31, 2018 (2) $ 770,184 $ 122,745 $ 497,338 $ 847,708 $ 2,237,975 (1) Amounts included in Other reflect the Company's operations that are not included in a reportable segment. (2) As of December 31, 2018 , goodwill was net of accumulated impairment losses of $139.2 million , of which $91.9 million was in Other and $47.3 million was in Markel Ventures. As of December 31, 2017 , goodwill was net of accumulated impairment losses of $47.3 million , all of which was included in Markel Ventures. Goodwill and indefinite-lived intangible assets are tested for impairment at least annually. The Company completes an annual test during the fourth quarter of each year based upon the results of operations through September 30. Total impairment of goodwill for the years ended December 31, 2018 and 2016 was $91.9 million and $18.7 million , respectively. There was no impairment of goodwill during 2017 . During the fourth quarter of 2018, the Company recorded a goodwill and intangible asset impairment charge at Markel CATCo Investment Management Ltd. (MCIM) totaling $179.0 million . In light of governmental inquiries into loss reserves recorded in late 2017 and early 2018 at Markel CATCo Re Ltd. (Markel CATCo Re), an unconsolidated subsidiary managed by MCIM, and taking into consideration the departure of two senior MCIM executives and special redemption rights that are now being offered to investors in the Markel CATCo Funds, as defined in note 16 , and all of which is further described in note 18 , the Company concluded MCIM’s ability to maintain or raise capital has been adversely impacted. As a result, the Company performed an assessment of the recoverability of goodwill and intangible assets at the MCIM reporting unit as of December 31, 2018. As a result of the assessment, the Company reduced the carrying value of the goodwill and intangible assets of the MCIM reporting unit to zero , which resulted in a goodwill impairment charge of $91.9 million and an intangible asset impairment charge of $87.1 million , both of which were recorded to impairment of goodwill and intangible assets in the consolidated statement of loss and comprehensive loss for the year ended December 31, 2018. The Company estimated the fair value of the reporting unit, and resulting goodwill impairment loss, primarily using an income approach based on a discounted cash flow model. The discount rates used to determine the fair value estimates were developed based on the capital asset pricing model using market-based inputs as well as an assessment of the inherent risk in the projected cash flows. The cash flow projections used in the discounted cash flow model include management’s best estimate of future growth and margins. Significant assumptions in the discounted cash flow model used to determine the fair value of the MCIM reporting unit included the amount and timing of new investor capital being introduced, anticipated redemptions during 2019 in light of special redemption rights now being offered to investors in the Markel CATCo Funds, and other assumptions impacting the expected level of management fees to be earned by MCIM. The MCIM intangible asset impairment of $87.1 million primarily related to intangible assets associated with MCIM’s investment management agreements with the Markel CATCo Funds. After determining that the intangible assets of MCIM were unrecoverable, the Company estimated the fair value of the intangible assets using an income approach based on an excess earnings model. In light of the special redemption rights that are now being offered to investors in the Markel CATCo Funds, the cash flows supporting the intangible assets have been adversely impacted. During the fourth quarter of 2016, the Company recorded a goodwill impairment charge of $18.7 million to impairment of goodwill and intangible assets for one of Markel Ventures' industrial products reporting units, to reduce the carrying value of its goodwill to its implied fair value. Unfavorable market conditions, specifically declining oil prices from late 2014 through 2016 resulted in lower than expected earnings over a similar time period. The reporting unit's earnings are generally tied to infrastructure spending across global markets, a significant portion of which are influenced by the price of oil. To determine the value of the impairment loss, the Company estimated the fair value of the reporting unit primarily using an income approach based on a discounted cash flow model. While the cash flow projections, at that time, yielded positive cash flows and earnings in the long-term, they were insufficient to support the carrying value of the reporting unit due to the unfavorable impact of market conditions and recent trends on the Company's shorter-term projections. Following the impairment charge in 2016, the carrying value of the reporting unit's goodwill was reduced to zero . The following table presents the components of intangible assets. December 31, 2018 2017 (dollars in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships $ 953,739 $ (204,261 ) $ 941,477 $ (161,797 ) Investment management agreements 441,000 — 98,000 (14,000 ) Broker relationships 204,367 (78,559 ) 184,959 (69,677 ) Trade names 193,154 (62,827 ) 164,335 (59,660 ) Technology 109,208 (47,090 ) 94,712 (44,489 ) Agent relationships 92,000 (10,175 ) 92,000 (4,042 ) Insurance licenses 74,635 — 70,385 — Renewal rights 21,053 (18,272 ) 19,514 (17,681 ) Other 107,441 (49,217 ) 111,633 (49,988 ) Total $ 2,196,597 $ (470,401 ) $ 1,777,015 $ (421,334 ) During 2018, the Company recorded intangible asset impairment charges of $107.3 million , including $87.1 million related to MCIM, as described above, and $14.9 million related to one of the Markel Ventures industrial products businesses. See note 18 . Amortization of intangible assets was $115.9 million , $80.8 million and $68.5 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Amortization of intangible assets is estimated to be $140.3 million for 2019 , $137.2 million for 2020 , $133.5 million for 2021 , $130.1 million for 2022 and $128.4 million for 2023 . Indefinite-lived intangible assets were $92.4 million at December 31, 2018 and $88.2 million at December 31, 2017 . For the year ended December 31, 2018 , the Company acquired $608.3 million of intangible assets, of which $604.1 million is amortizable. The definite-lived intangible assets acquired are expected to be amortized over a weighted average period of 15 years . The definite-lived intangible assets acquired during 2018 include investment management relationships, customer relationships, trade names, broker relationships, technology and other intangible assets, which are expected to be amortized over a weighted average period of 16 , 16 , 15 , 12 , 6 and 5 years, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) before income taxes includes the following components. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Domestic operations $ 99,373 $ 337,704 $ 288,905 Foreign operations (107,228 ) (250,409 ) 341,015 Income (loss) before income taxes $ (7,855 ) $ 87,295 $ 629,920 Income tax expense (benefit) includes the following components. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Current: Domestic $ 77,936 $ (19,255 ) $ 57,916 Foreign 41,833 29,882 48,203 Total current tax expense 119,769 10,627 106,119 Deferred: Domestic (77,255 ) (222,427 ) 19,991 Foreign 79,984 (101,663 ) 43,367 Total deferred tax expense (benefit) 2,729 (324,090 ) 63,358 Income tax expense (benefit) $ 122,498 $ (313,463 ) $ 169,477 Foreign income tax expense includes U.S. income tax expense on foreign operations, which includes U.S. income tax on the Company's United Kingdom (U.K.) and Bermuda-based operations, certain of which have elected to be taxed as domestic corporations for U.S. tax purposes. State income tax expense is not material to the consolidated financial statements. The Company made income tax payments of $63.1 million , $70.2 million and $142.2 million in 2018 , 2017 and 2016 , respectively. Income taxes payable were $83.7 million and $51.3 million at December 31, 2018 and 2017 , respectively, and were included in other liabilities on the consolidated balance sheets. Income taxes receivable were $49.3 million and $64.3 million at December 31, 2018 and 2017 , respectively, and were included in other assets on the consolidated balance sheets. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (TCJA), which made significant modifications to U.S. income tax law, most of which were effective January 1, 2018. As a result, the Company recorded a one-time tax benefit of $339.9 million in the fourth quarter of 2017, a portion of which was considered provisional at December 31, 2017. The one-time benefit from the TCJA was attributable to the remeasurement of the Company’s U.S. deferred tax assets and liabilities on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases at the lower enacted U.S. corporation tax rate, partially offset by the tax on the deemed repatriation of foreign earnings. In 2018, the Company completed its determination of the accounting for the TCJA, which resulted in an additional tax benefit of $5.7 million . After extensive discussions and analysis of the Company's overall capital and tax profile resulting from the enactment of the TCJA, in 2018 the Company decided to elect to treat its most significant U.K. subsidiaries as domestic corporations for U.S. tax purposes. As a result, the earnings and profits of those subsidiaries are no longer considered to be indefinitely reinvested and the Company recorded a one-time deferred tax charge of $103.3 million related to the book and tax basis differences attributable to those subsidiaries. The Company continues to be indefinitely reinvested in its other foreign subsidiaries, with the exception of certain Bermuda-based subsidiaries. As of December 31, 2018, the cumulative earnings of the Company's foreign subsidiaries that are considered indefinitely reinvested, and have not previously been subject to tax in the U.S., are not material. The following table presents a reconciliation of income taxes computed using the U.S. corporate tax rate to the Company's income tax expense (benefit). Years Ended December 31, 2018 2017 2016 Income taxes at U.S. corporate tax rate $ (1,650 ) $ 30,553 $ 220,472 Increase (decrease) resulting from: Change in tax status of U.K. subsidiaries 103,281 — — Nondeductible loss on investments managed by MCIM 26,552 16,231 — Foreign operations 4,951 37,207 4,672 Tax-exempt investment income (18,927 ) (41,565 ) (39,710 ) TCJA (5,699 ) (339,899 ) — Tax credits (3,617 ) (10,236 ) (13,294 ) Stock based compensation (2,635 ) (9,001 ) (5,411 ) Other 20,242 3,247 2,748 Income tax expense (benefit) $ 122,498 $ (313,463 ) $ 169,477 The following table presents the components of domestic and foreign deferred tax assets and liabilities. December 31, (dollars in thousands) 2018 2017 Assets: Unpaid losses and loss adjustment expenses $ 164,497 $ 144,761 Unearned premiums recognized for income tax purposes 85,952 74,282 Life and annuity benefits 78,370 77,945 Net operating loss carryforwards 46,662 29,252 Tax credit carryforwards 39,877 48,938 Accrued incentive compensation 30,308 23,167 Other differences between financial reporting and tax bases 39,763 60,995 Total gross deferred tax assets 485,429 459,340 Less valuation allowance (36,286 ) (25,225 ) Total gross deferred tax assets, net of allowance 449,143 434,115 Liabilities: Investments 590,250 603,523 Goodwill and other intangible assets 124,953 171,681 Deferred policy acquisition costs 89,716 90,826 Other differences between financial reporting and tax bases 90,269 73,664 Total gross deferred tax liabilities 895,188 939,694 Net deferred tax liability $ 446,045 $ 505,579 The net deferred tax liability at December 31, 2018 and 2017 was included in other liabilities on the consolidated balance sheets. At December 31, 2018 , the Company had tax credit carryforwards of $39.9 million . The earliest any of these credits will expire is 2028 . At December 31, 2018 , the Company also had net operating losses of $40.7 million that can be used to offset future taxable income in the U.S. Th e Company's ability to use the majority of these losses expires between the y ears 2028 and 2037 . At December 31, 2018 , certain branch operations in Europe and a wholly owned subsidiary in Brazil had net operating losses of $121.7 million that can be used to offset future income in their local jurisdictions. The Company's ability to use $31.4 million of these losses expires between the years 2020 and 2027 . The remaining losses are not subject to expiration. As discussed below, the deferred tax assets related to losses at the Company's European branches, its Brazilian subsidiary and certain U.S. subsidiaries are offset by valuation allowances. The Company believes that it is more likely than not that it will realize $449.1 million of gross deferred tax assets, including net operating losses at December 31, 2018 , through generating taxable income or the reversal of existing temporary differences attributable to the gross deferred tax liabilities. As a result of cumulative net operating losses in certain jurisdictions, the Company has a valuation allowance of $36.3 million at December 31, 2018 that offsets the deferred tax assets primarily related to losses incurred at European branches of one of the Company's U.K. subsidiaries, at one of the Company's Brazilian subsidiaries and at certain U.S. subsidiaries. At December 31, 2018 , the Company did not have any material unrecognized tax benefits. The Company does not anticipate any changes in unrecognized tax benefits during 2019 that would have a material impact on the Company's income tax provision. The Company is subject to income tax in the U.S. and in foreign jurisdictions. With few exceptions, the Company is no longer subject to income tax examination by tax authorities for years ended before January 1, 2015 . |
Unpaid Losses And Loss Adjustme
Unpaid Losses And Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract] | |
Unpaid Losses And Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses a) The following table presents a reconciliation of consolidated beginning and ending reserves for losses and loss adjustment expenses. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Net reserves for losses and loss adjustment expenses, beginning of year $ 8,964,945 $ 8,108,717 $ 8,235,288 Foreign currency movements (69,119 ) 110,079 (129,692 ) Adjusted net reserves for losses and loss adjustment expenses, beginning of year 8,895,826 8,218,796 8,105,596 Incurred losses and loss adjustment expenses: Current accident year 3,371,699 3,367,223 2,555,902 Prior accident years (551,040 ) (497,627 ) (493,495 ) Total incurred losses and loss adjustment expenses 2,820,659 2,869,596 2,062,407 Payments: Current accident year 666,515 671,112 532,140 Prior accident years 1,835,027 1,513,580 1,529,206 Total payments 2,501,542 2,184,692 2,061,346 Effect of foreign currency rate changes (500 ) 3,752 2,060 Net reserves for losses and loss adjustment expenses of acquired insurance companies — 57,493 — Net reserves for losses and loss adjustment expenses, end of year 9,214,443 8,964,945 8,108,717 Reinsurance recoverable on unpaid losses 5,062,036 4,619,336 2,006,945 Gross reserves for losses and loss adjustment expenses, end of year $ 14,276,479 $ 13,584,281 $ 10,115,662 In 2018, underwriting results included $287.3 million of underwriting loss from Hurricanes Florence and Michael, Typhoon Jebi and wildfires in California (2018 Catastrophes). The underwriting loss on the 2018 Catastrophes was comprised of $292.8 million of estimated net losses and loss adjustment expenses partially offset by $5.4 million of net assumed reinstatement premiums. The estimated net losses and loss adjustment expenses on the 2018 Catastrophes were net of estimated ceded losses of $244.1 million . Incurred losses and loss adjustment expenses in 2018 included $551.0 million of favorable development on prior years' loss reserves, which included $424.1 million of favorable development on the Company's general liability, workers' compensation, professional liability and marine and energy product lines within the Insurance segment and surety and marine and energy product lines within the Reinsurance segment. In 2017, underwriting results included $565.3 million of underwriting loss from Hurricanes Harvey, Irma, Maria and Nate as well as the earthquakes in Mexico and wildfires in California (2017 Catastrophes). The underwriting loss on the 2017 Catastrophes was comprised of $585.4 million of estimated net losses and loss adjustment expenses and $20.1 million of net assumed reinstatement premiums. The estimated net losses and loss adjustment expenses on the 2017 Catastrophes for the year ended December 31, 2017 were net of estimated ceded losses of $490.3 million . Incurred losses and loss adjustment expenses in 2017 included $497.6 million of favorable development on prior years' loss reserves, which included $422.9 million of favorable development on the Company's general liability, marine and energy product lines, professional liability, and workers' compensation product lines as well as personal lines business within the Insurance segment and property product lines within the Reinsurance segment. Favorable development in 2017 was partially offset by $85.0 million of adverse development on our auto product line resulting from a decrease in the discount rate, known as the Ogden Rate, used to calculate lump sum awards in U.K. bodily injury cases. In 2017, the Company recorded net reserves for losses and loss adjustment expenses of $57.5 million as a result of acquisitions completed during the year. All acquired net reserves were recorded at fair value as part of the Company's purchase accounting. See note 2 for a discussion of the Company's acquisitions. In 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. This amount is excluded from the prior years' incurred losses and loss adjustment expenses for 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. In 2016, incurred losses and loss adjustment expenses included $493.5 million of favorable development on prior years' loss reserves, which included $418.0 million of favorable development on the Company's general liability, property and marine and energy product lines within the Insurance segment and property product lines in the Reinsurance segment, as actual claims reporting and development patterns on prior accident years have been more favorable than the Company's actuarial analyses initially anticipated. Favorable development in 2016 was partially offset by $71.2 million of adverse development on the Company's specified medical and medical malpractice product lines within the Insurance segment. In 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. The Company uses a variety of techniques to establish the liabilities for unpaid losses and loss adjustment expenses based upon estimates of the ultimate amounts payable. The Company maintains reserves for specific claims incurred and reported (case reserves) and reserves for claims incurred but not reported (IBNR reserves), which include expected development on reported claims. The Company does not discount its reserves for losses and loss adjustment expenses to reflect estimated present value, except for reserves held for a runoff book of U.K. motor business. Additionally, reserves assumed in connection with an acquisition are recorded at fair value at the acquisition date. The fair value adjustment includes an adjustment to reflect the acquired reserves for losses and loss adjustment expenses at present value plus a risk premium, the net of which is amortized to losses and loss adjustment expenses within the consolidated statements of income. As of any balance sheet date, all claims have not yet been reported, and some claims may not be reported for many years. As a result, the liability for unpaid losses and loss adjustment expenses includes significant estimates for incurred but not reported claims. There is normally a time lag between when a loss event occurs and when it is actually reported to the Company. The actuarial methods that the Company uses to estimate losses have been designed to address the lag in loss reporting as well as the delay in obtaining information that would allow the Company to more accurately estimate future payments. There is also a time lag between cedents establishing case reserves and re-estimating their reserves, and notifying the Company of the new or revised case reserves. As a result, the reporting lag is more pronounced in reinsurance contracts than in the insurance contracts due to the reliance on ceding companies to report their claims. On reinsurance transactions, the reporting lag will generally be 60 to 90 days after the end of a reporting period, but can be longer in some cases. Based on the experience of the Company's actuaries and management, loss development factors and trending techniques are selected to mitigate the difficulties caused by reporting lags. The loss development and trending factor selections are evaluated at least annually and updated using cedent specific and industry data. IBNR reserves are based on the estimated ultimate cost of settling claims, including the effects of inflation and other social and economic factors, using past experience adjusted for current trends and any other factors that would modify past experience. IBNR reserves, which include expected development on reported claims, are generally calculated by subtracting paid losses and loss adjustment expenses and case reserves from estimated ultimate losses and loss adjustment expenses. IBNR reserves were 64% of total unpaid losses and loss adjustment expenses at both December 31, 2018 and 2017 . In establishing liabilities for unpaid losses and loss adjustment expenses, the Company's actuaries estimate an ultimate loss ratio, by accident year or policy year, for each product line with input from underwriting and claims associates. For product lines in which loss reserves are established on a policy year basis, the Company has developed a methodology to convert from policy year to accident year for financial reporting purposes. In estimating an ultimate loss ratio for a particular line of business, the actuaries may use one or more actuarial reserving methods and select from these a single point estimate. To varying degrees, these methods include detailed statistical analysis of past claim reporting, settlement activity, claim frequency and severity, policyholder loss experience, industry loss experience and changes in market conditions, policy forms and exposures. Greater judgment may be required when new product lines are introduced or when there have been changes in claims handling practices, as the statistical data available may be insufficient. These estimates also reflect implicit and explicit assumptions regarding the potential effects of external factors, including economic and social inflation, judicial decisions, changes in law, general economic conditions and recent trends in these factors. Management believes the process of evaluating past experience, adjusted for the effects of current developments and anticipated trends, is an appropriate basis for predicting future events. Loss reserves are established at management's best estimate, which is generally higher than the corresponding actuarially calculated point estimate. The actuarial point estimate represents the actuaries' estimate of the most likely amount that will ultimately be paid to settle the loss reserves that are recorded at a particular point in time; however, there is inherent uncertainty in the point estimate as it is the expected value in a range of possible reserve estimates. In some cases, actuarial analyses, which are based on statistical analysis, cannot fully incorporate all of the subjective factors that affect development of losses. In other cases, management's perspective of these more subjective factors may differ from the actuarial perspective. Subjective factors where management's perspective may differ from that of the actuaries include: the credibility and timeliness of claims information received from third parties, economic and social inflation, judicial decisions, changes in law, changes in underwriting or claims handling practices, general economic conditions, the risk of moral hazard and other current and developing trends within the insurance and reinsurance markets, including the effects of competition. As a result, the actuarially calculated point estimate for each line of business represents the starting point for management's quarterly review of loss reserves. Inherent in the Company's reserving practices is the desire to establish loss reserves that are more likely redundant than deficient. As such, the Company seeks to establish loss reserves that will ultimately prove to be adequate. As part of the Company's acquisition of insurance operations, to the extent the reserving philosophy of the acquired business differs from the Company's reserving philosophy, the post-acquisition loss reserves will be strengthened until total loss reserves are consistent with the Company's target level of confidence. Furthermore, the Company's philosophy is to price its insurance products to make an underwriting profit. Management continually attempts to improve its loss estimation process by refining its ability to analyze loss development patterns, claim payments and other information, but uncertainty remains regarding the potential for adverse development of estimated ultimate liabilities. Management currently believes the Company's gross and net reserves are adequate. However, there is no precise method for evaluating the impact of any significant factor on the adequacy of reserves, and actual results will differ from original estimates. b) The following tables present undiscounted loss development information, by accident year, for the Company's Insurance and Reinsurance segments, including cumulative incurred and paid losses and allocated loss adjustment expenses, net of reinsurance, as well as the corresponding amount of IBNR reserves as of December 31, 2018 . This level of disaggregation is consistent with how the Company analyzes loss reserves for both internal and external reporting purposes. The loss development information for the years ended December 31, 2012 through 2017 is presented as supplementary information. Incurred losses in both our Insurance and Reinsurance segments generally remain outstanding more than seven years; however, data prior to 2012 is not practically available by segment as a result of a change in the Company's reportable segments in 2014. Additionally, reserves for the Company's international operations are determined on a policy year basis and historical data prior to 2012 does not exist by accident year. All amounts included in the tables below related to transactions denominated in a foreign currency have been translated into U.S. Dollars using the exchange rates in effect at December 31, 2018 . The difference between the segment loss development implied by the tables for the year ended December 31, 2018 and actual losses and loss adjustment expenses on prior accident years for the Insurance and Reinsurance segments for the year ended December 31, 2018 is primarily attributed to the fact that amounts presented in these tables exclude amounts attributed to the 2011 and prior accident years, exclude unallocated loss adjustment expenses and exclude amounts attributable to reserve discounting and fair value adjustments recorded in conjunction with acquisitions, as well as differences in the presentation of foreign currency movements, as described above. The Insurance segment table below also includes claim frequency information, by accident year. The Company defines a claim as a single claim incident, per policy, which may include multiple claimants and multiple coverages on a single policy. Claim counts include claims closed without a payment as well as claims where the Company is monitoring to determine if an exposure exists, even if a reserve has not been established. All of the business contained within the Company's Reinsurance segment represents treaty business that is assumed from other insurance or reinsurance companies, for which the Company does not have access to the underlying claim counts. Further, this business includes both quota share and excess of loss treaty reinsurance, through which only a portion of each reported claim results in losses to the Company. As such, the Company has excluded claim count information from the Reinsurance segment disclosures. In 2013, the Company completed the acquisition of Alterra Capital Holdings Limited (Alterra), the results of which are included in both of the Company's reportable segments. Ultimate incurred losses and loss adjustment expenses, net of reinsurance as of December 31, 2013 include outstanding liabilities for losses and loss adjustment expenses of Alterra as of the acquisition date, by accident year, and not in any prior periods. Pre-acquisition data is not available by segment and accident year due in part to the impact of significant intercompany reinsurance contracts. Additionally, Alterra reserves were historically determined on a policy year basis and pre-acquisition data does not exist in a format that can be used to determine accident year. Following the acquisition, ongoing business attributable to Alterra was integrated with the Company's other insurance operations and is not separately tracked. Insurance Segment Ultimate Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Total of Incurred-but-Not-Reported Liabilities, Net of Reinsurance Cumulative Number of Reported Claims Unaudited As of December 31, (in thousands) As of December 31, Accident Year 2012 2013 2014 2015 2016 2017 2018 December 31, 2018 2012 $ 1,369,219 $ 1,609,802 $ 1,489,026 $ 1,427,255 $ 1,395,103 $ 1,361,513 $ 1,348,062 $ 119,585 127 2013 1,735,667 1,694,879 1,525,750 1,462,652 1,428,733 1,387,804 200,744 87 2014 1,862,947 1,695,698 1,627,960 1,570,428 1,522,132 213,237 78 2015 1,783,064 1,710,271 1,585,447 1,530,354 291,364 84 2016 1,871,455 1,786,959 1,686,374 378,681 89 2017 2,326,966 2,160,771 691,736 116 2018 2,452,747 1,466,264 147 Total $ 12,088,244 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Unaudited As of December 31, As of December 31, Accident Year 2012 2013 2014 2015 2016 2017 2018 2012 $ 233,371 $ 567,450 $ 780,067 $ 937,643 $ 1,052,859 $ 1,117,221 $ 1,150,793 2013 271,439 571,548 779,023 949,370 1,037,635 1,099,985 2014 331,626 657,742 894,470 1,062,211 1,167,598 2015 322,633 665,112 876,509 1,040,377 2016 372,182 752,606 981,920 2017 438,289 990,931 2018 496,812 Total $ 6,928,416 All outstanding liabilities for unpaid losses and loss adjustment expenses before 2012, net of reinsurance 605,610 Total liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 5,765,438 Ultimate incurred losses and allocated loss adjustment expenses as of December 31, 2013 for the Insurance segment include $256.4 million and $313.3 million of losses and loss adjustment expenses on the 2012 and 2013 accident years, respectively, attributable to Alterra. Cumulative paid losses and allocated loss adjustment expenses as of December 31, 2013 include $36.8 million and $29.5 million of paid losses and allocated loss adjustment expenses on the 2012 and 2013 accident years, respectively, attributable to the acquired Alterra reserves and post-acquisition Alterra business. Cumulative paid losses and allocated loss adjustment expenses and cumulative reported claims for the 2012 and 2013 accident years exclude any claims paid or closed prior to the acquisition. Variability in claim counts is primarily attributable to claim counts associated with a personal lines product with high claim frequency and low claim severity. Cumulative reported claims for the 2012, 2013, 2017 and 2018 accident years include 66 thousand , 17 thousand , 24 thousand and 46 thousand , respectively, of claim counts associated with this product. The Company did not write this business from 2014 to 2016. The related net incurred losses and allocated loss adjustment expenses are not material to the Insurance segment. Reinsurance Segment Ultimate Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Total of Incurred-but-Not-Reported Liabilities, Net of Reinsurance Unaudited As of December 31, (in thousands) As of December 31, Accident Year 2012 2013 2014 2015 2016 2017 2018 December 31, 2018 2012 $ 72,903 $ 550,343 $ 507,023 $ 485,374 $ 457,038 $ 454,839 $ 446,722 $ 62,700 2013 586,074 578,994 547,828 534,148 543,963 506,609 78,266 2014 577,123 564,720 536,247 578,688 556,775 121,489 2015 528,076 514,050 531,854 522,783 197,446 2016 523,958 533,526 531,769 199,881 2017 906,216 939,604 403,107 2018 760,161 543,670 Total $ 4,264,423 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Unaudited As of December 31, As of December 31, Accident Year 2012 2013 2014 2015 2016 2017 2018 2012 $ 4,049 $ 64,460 $ 128,769 $ 183,943 $ 231,541 $ 263,811 $ 288,772 2013 71,503 155,515 209,893 268,761 301,714 331,630 2014 97,918 158,105 226,883 275,278 312,296 2015 63,924 133,932 207,985 259,366 2016 79,383 169,877 241,072 2017 158,049 359,659 2018 87,614 Total $ 1,880,409 All outstanding liabilities for unpaid losses and loss adjustment expenses before 2012, net of reinsurance 650,117 Total liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 3,034,131 Ultimate incurred losses and allocated loss adjustment expenses as of December 31, 2013 for the Reinsurance segment include $474.2 million and $536.2 million of losses and loss adjustment expenses on the 2012 and 2013 accident years, respectively, attributable to Alterra. Cumulative paid losses and allocated loss adjustment expenses as of December 31, 2013 include $52.6 million and $68.9 million of paid losses and allocated loss adjustment expenses on the 2012 and 2013 accident years, respectively, attributable to the acquired Alterra reserves and post-acquisition Alterra business. Cumulative paid losses and allocated loss adjustment expenses for the 2012 and 2013 accident years exclude any claims paid prior to the acquisition. The following table presents supplementary information about average historical claims duration as of December 31, 2018 based on the cumulative incurred and paid losses and allocated loss adjustment expenses presented above. Average Annual Percentage Payout of Incurred Losses by Age (in Years), Net of Reinsurance Unaudited 1 2 3 4 5 6 7 Insurance 20.3 % 23.1 % 14.7 % 11.4 % 7.3 % 4.6 % 2.5 % Reinsurance 12.6 % 15.5 % 13.0 % 10.6 % 7.9 % 6.6 % 5.6 % The following table reconciles the net incurred and paid loss development tables to the liability for losses and loss adjustment expenses in the consolidated balance sheet. (dollars in thousands) December 31, 2018 Net outstanding liabilities Insurance segment $ 5,765,438 Reinsurance segment 3,034,131 Other 204,069 Program services 2,561 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance 9,006,199 Reinsurance recoverable on unpaid losses Insurance segment 1,965,565 Reinsurance segment 415,900 Other 166,505 Program services 2,514,066 Total reinsurance recoverable on unpaid losses 5,062,036 Unallocated loss adjustment expenses 239,753 Unamortized discount, net of acquisition fair value adjustments, included in unpaid losses and loss adjustment expenses (31,509 ) 208,244 Total gross liability for unpaid losses and loss adjustment expenses $ 14,276,479 c) The Company's exposure to asbestos and environmental (A&E) claims primarily results from policies written by acquired insurance operations before their acquisition by the Company. The Company's exposure to A&E claims originated from umbrella, excess and commercial general liability insurance policies and assumed reinsurance contracts that were written on an occurrence basis from the 1970s to mid-1980s. Exposure also originated from claims-made policies that were designed to cover environmental risks provided that all other terms and conditions of the policy were met. A&E claims include property damage and clean-up costs related to pollution, as well as personal injury allegedly arising from exposure to hazardous materials. Development on asbestos and environmental loss reserves is monitored separately from the Company's ongoing underwriting operations and are not included in a reportable segment. The following table provides a reconciliation of beginning and ending A&E reserves for losses and loss adjustment expenses, which are a component of consolidated unpaid losses and loss adjustment expenses. Amounts included in the following table are presented before consideration of reinsurance allowances. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Net reserves for A&E losses and loss adjustment expenses, beginning of year $ 104,661 $ 111,604 $ 132,869 Commutations and other (305 ) 6,827 — Adjusted net reserves for A&E losses and loss adjustment expenses, beginning of year 104,356 118,431 132,869 Incurred losses and loss adjustment expenses — 659 (5,277 ) Payments (21,308 ) (14,429 ) (15,988 ) Net reserves for A&E losses and loss adjustment expenses, end of year 83,048 104,661 111,604 Reinsurance recoverable on unpaid losses 164,663 169,866 212,300 Gross reserves for A&E losses and loss adjustment expenses, end of year $ 247,711 $ 274,527 $ 323,904 At December 31, 2018 , asbestos-related reserves were $188.3 million and $63.4 million on a gross and net basis, respectively. Net reserves for reported claims for A&E exposures were $74.4 million at December 31, 2018 . Net incurred but not reported reserves for A&E exposures were $8.7 million at December 31, 2018 . Inception-to-date net paid losses and loss adjustment expenses for A&E related exposures totaled $647.7 million at December 31, 2018 . The Company's reserves for losses and loss adjustment expenses related to A&E exposures represent management's best estimate of ultimate settlement values based on the Company's statistical analysis of these reserves, which is reviewed by the Company's independent actuaries. A&E exposures are subject to significant uncertainty due to potential loss severity and frequency resulting from the uncertain and unfavorable legal climate. A&E reserves could be subject to increases in the future; however, management believes the Company's gross and net A&E reserves at December 31, 2018 are adequate. |
Life And Annuity Benefits
Life And Annuity Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Liability for Future Policy Benefits [Abstract] | |
Life And Annuity Benefits | Life and Annuity Benefits The following table presents life and annuity benefits. December 31, (dollars in thousands) 2018 2017 Life $ 122,798 $ 127,208 Annuities 827,773 885,984 Accident and health 50,882 58,920 Total $ 1,001,453 $ 1,072,112 Life and annuity benefits are compiled on a reinsurance contract-by-contract basis and are discounted using standard actuarial techniques and cash flow models. Since the development of the life and annuity reinsurance reserves is based upon cash flow projection models, the Company must make estimates and assumptions based on cedent experience, industry mortality tables, and expense and investment experience, including a provision for adverse deviation. The assumptions used to determine policy benefit reserves are generally locked-in for the life of the contract unless an unlocking event occurs. Loss recognition testing is performed to determine if existing policy benefit reserves, together with the present value of future gross premiums and expected investment income earned thereon, are adequate to cover the present value of future benefits, settlement and maintenance costs. If the existing policy benefit reserves are not sufficient, the locked-in assumptions are revised to current best estimate assumptions and a charge to earnings for life and annuity benefits is recognized at that time. Because of the assumptions and estimates used in establishing the Company's reserves for life and annuity benefit obligations and the long-term nature of these reinsurance contracts, the ultimate liability may be greater or less than the estimates. The average discount rate for the life and annuity benefit reserves was 2.3% as of December 31, 2018 . As of December 31, 2018 , the largest life and annuity benefits reserve for a single contract was 33.1% of the total. No annuities included in life and annuity benefits in the consolidated balance sheet are subject to discretionary withdrawal. |
Senior Long-Term Debt And Other
Senior Long-Term Debt And Other Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Senior Long-Term Debt And Other Debt | Senior Long-Term Debt and Other Debt The following table summarizes the Company's senior long-term debt and other debt. December 31, (dollars in thousands) 2018 2017 7.125% unsecured senior notes, due September 30, 2019, interest payable semi-annually, net of unamortized discount of $142 in 2018 and $332 in 2017 $ 234,640 $ 234,411 6.25% unsecured senior notes, due September 30, 2020, interest payable semi-annually, net of unamortized premium of $17,213 in 2018 and $26,618 in 2017 367,213 376,616 5.35% unsecured senior notes, due June 1, 2021, interest payable semi-annually, net of unamortized discount of $499 in 2018 and $706 in 2017 249,417 249,176 4.90% unsecured senior notes, due July 1, 2022, interest payable semi-annually, net of unamortized discount of $978 in 2018 and $1,257 in 2017 348,864 348,540 3.625% unsecured senior notes, due March 30, 2023, interest payable semi-annually, net of unamortized discount of $855 in 2018 and $1,056 in 2017 248,988 248,749 3.50% unsecured senior notes, due November 1, 2027, interest payable semi-annually, net of unamortized discount of $2,298 in 2018 and $2,558 in 2017 297,035 296,728 7.35% unsecured senior notes, due August 15, 2034, interest payable semi-annually, net of unamortized discount of $1,074 in 2018 and $1,143 in 2017 128,715 128,642 5.0% unsecured senior notes, due March 30, 2043, interest payable semi-annually, net of unamortized discount of $5,431 in 2018 and $5,655 in 2017 244,269 244,033 5.0% unsecured senior notes, due April 5, 2046, interest payable semi-annually, net of unamortized discount of $6,664 in 2018 and $6,909 in 2017 492,486 492,219 4.30% unsecured senior notes, due November 1, 2047, interest payable semi-annually, net of unamortized discount of $4,278 in 2018 and $4,451 in 2017 294,975 294,834 Other debt, at various interest rates ranging from 1.7% to 6.3% 102,975 185,282 Senior long-term debt and other debt $ 3,009,577 $ 3,099,230 The Company's 6.25% unsecured senior notes were issued by Alterra Finance LLC, which is a wholly owned indirect subsidiary of the Company, and are guaranteed by Markel Corporation. All of the Company's other unsecured senior notes were issued by Markel Corporation. In April 2017, the Company repaid its 7.20% unsecured senior notes due April 14, 2017 ( $90.6 million principal outstanding at December 31, 2016). In 2018 and 2017, the Company repaid $44.5 million and $84.3 million , respectively, of debt assumed in connection with acquisitions. In November 2017, the Company issued $300 million of 3.50% unsecured notes due November 1, 2027 and $300 million of 4.30% unsecured notes due November 1, 2047. Net proceeds to the Company were $297.4 million and $295.5 million , respectively, to be used for general corporate purposes. In 2016, the Company issued $500 million of 5.0% unsecured senior notes due April 5, 2046. Net proceeds to the Company were $493.1 million . The Company used a portion of these proceeds to purchase $70.2 million of principal on its 7.35% unsecured senior notes due 2034 and $108.8 million of principal on its 7.125% unsecured senior notes due 2019 through a tender offer for a total purchase price of $95.0 million and $126.4 million , respectively. In connection with the purchase, the Company recognized a loss on early extinguishment of debt of $44.1 million during the year ended December 31, 2016. The Company's 7.35% unsecured senior notes due August 15, 2034 are not redeemable. The Company's other unsecured senior notes are redeemable by the Company at any time, subject to payment of a make-whole premium to the noteholders. None of the Company's senior long-term debt is subject to any sinking fund requirements. The Company's other debt is primarily associated with its subsidiaries and includes $78.1 million and $78.3 million associated with its Markel Ventures subsidiaries as of December 31, 2018 and 2017 , respectively. The Markel Ventures debt is non-recourse to the holding company and generally is secured by the assets of those subsidiaries. ParkLand, a subsidiary of the Company, has formed subsidiaries for the purpose of acquiring and financing real estate (the real estate subsidiaries). The assets of certain real estate subsidiaries, which are not material to the Company, are consolidated in accordance with U.S. GAAP but are not available to satisfy the debt and other obligations of the Company or any affiliates other than those real estate subsidiaries. Other debt also includes a note payable of $24.9 million and $62.5 million at December 31, 2018 and 2017 , respectively, that was delivered as part of the consideration provided for the investment held by the Markel Diversified Fund, as discussed in note 16 . The estimated fair value of the Company's senior long-term debt and other debt was $3.0 billion and $3.4 billion at December 31, 2018 and 2017 , respectively. The following table summarizes the future principal payments due at maturity on senior long-term debt and other debt as of December 31, 2018 . Years Ending December 31, (dollars in thousands) 2019 $ 288,538 2020 356,585 2021 281,287 2022 356,315 2023 250,671 2024 and thereafter 1,484,896 Total principal payments $ 3,018,292 Net unamortized discount (5,005 ) Net unamortized debt issuance costs (3,710 ) Senior long-term debt and other debt $ 3,009,577 The Company maintains a revolving credit facility which provides $300 million of capacity for future acquisitions, investments, repurchases of capital stock of the Company and for general corporate purposes. At the Company's discretion, $200 million of the total capacity may be used for secured letters of credit. The Company may increase the capacity of the facility to $500 million subject to certain terms and conditions. The Company pays interest on balances outstanding under the facility and a utilization fee for letters of credit issued under the facility. The Company also pays a commitment fee ( 0.25% at December 31, 2018 ) on the unused portion of the facility based on the Company's debt to equity leverage ratio as calculated under the credit agreement. Markel Corporation, along with Alterra Finance LLC and Alterra USA Holdings Limited, guaranteed the Company's obligations under the facility. As a result, the Company's revolving credit facility ranks equally with the 6.25% unsecured senior notes. At December 31, 2018 and 2017 , the Company had no borrowings outstanding under this revolving credit facility. This facility expires in August 2019. On February 5, 2019, the Company amended the revolving credit facility to increase its leverage ratio covenant from " 0.375 to 1.00 " to " 0.40 to 1.00 " effective on and after December 31, 2018. This change addresses the impact to the consolidated net worth calculation under the facility from the purchase of Nephila in November 2018 and 2018 Catastrophe and investment losses that occurred in the fourth quarter of 2018. Under the facility, consolidated net worth serves as the denominator for the leverage ratio and excludes, among other things, the net worth associated with the Nephila acquisition. The change also provides additional flexibility through the maturity date of the facility on August 1, 2019 for unanticipated future developments, including additional catastrophe events, or greater than anticipated effects from known events. At December 31, 2018 , the Company was in compliance with all covenants contained in its revolving credit facility as amended. To the extent that the Company is not in compliance with its covenants, the Company's access to the revolving credit facility could be restricted. The Company paid $155.4 million , $141.3 million and $135.4 million in interest on its senior long-term debt and other debt during the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity a) The Company had 50,000,000 shares of no par value common stock authorized of which 13,887,711 shares and 13,903,526 shares were issued and outstanding at December 31, 2018 and 2017 , respectively. The Company also has 10,000,000 shares of no par value preferred stock authorized, none of which was issued or outstanding at December 31, 2018 or 2017 . In May 2018, the Company's Board of Directors approved a new share repurchase program (the 2018 Program) to replace the previous share repurchase program that was approved by the Board of Directors in November 2013 (the 2013 Program). The 2018 Program provides for the repurchase of up to $300 million of common stock and has no expiration date but may be terminated by the Board of Directors at any time. During the year ended December 31, 2018 , the Company repurchased an aggregate of 35,174 shares of common stock at a cost of $39.0 million , including 15,509 shares repurchased under the 2013 Program at a cost of $17.6 million , and 19,665 shares repurchased under the 2018 Program at a cost of $21.4 million . In total, the Company repurchased 199,244 shares of common stock under the 2013 Program at a cost of $175.6 million . b) Net income per share was determined by dividing adjusted net income to shareholders by the applicable weighted average shares outstanding. Basic shares outstanding include restricted stock units that are no longer subject to any contingencies for issuance, but for which the corresponding shares have not been issued. Diluted net income per share is computed by dividing adjusted net income to shareholders by the weighted average number of common shares and dilutive potential common shares outstanding during the year. Average closing common stock market prices are used to calculate the dilutive effect attributable to restricted stock. Years Ended December 31, (in thousands, except per share amounts) 2018 2017 2016 Net income (loss) to shareholders (1) $ (128,180 ) $ 395,269 $ 455,689 Adjustment of redeemable noncontrolling interests (4,828 ) (33,738 ) (15,472 ) Adjusted net income (loss) to shareholders $ (133,008 ) $ 361,531 $ 440,217 Basic common shares outstanding 13,923 13,964 14,013 Dilutive potential common shares from options — 1 4 Dilutive potential common shares from restricted stock units and restricted stock — 41 61 Diluted shares outstanding 13,923 14,006 14,078 Basic net income (loss) per share $ (9.55 ) $ 25.89 $ 31.41 Diluted net income (loss) per share (2) $ (9.55 ) $ 25.81 $ 31.27 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. (2) The impact of restricted stock units and restricted stock of 25 thousand shares was excluded from the computation of diluted earnings per share for the year ended December 31, 2018 because the effect would have been anti-dilutive. c) The Company's Employee Stock Purchase and Bonus Plan provides a method for employees and directors to purchase shares of the Company's common stock on the open market. The plan encourages share ownership by providing for the award of bonus shares to participants equal to 10% of the net increase in the number of shares owned under the plan in a given year, excluding shares acquired through the plan's loan program component. Under the loan program, the Company offers subsidized unsecured loans so participants may purchase shares and awards bonus shares equal to 5% of the shares purchased with a loan. In May 2016, the Company adopted the Markel Corporation 2016 Employee Stock Purchase and Bonus Plan which replaced the Company's prior employee stock purchase and bonus plan. No shares have been issued under the prior employee stock purchase and bonus plan since the effective date of the 2016 Employee Stock Purchase and Bonus Plan. The Company authorized 125,000 shares for purchase under the 2016 Employee Stock Purchase and Bonus Plan, of which 105,283 and 113,690 shares were available for purchase as of December 31, 2018 and 2017 , respectively. At December 31, 2018 and 2017 , loans outstanding under the plans, which are included in receivables on the consolidated balance sheets, totaled $19.2 million and $18.5 million , respectively. d) In May 2016, the Company adopted the 2016 Equity Incentive Compensation Plan (2016 Compensation Plan), which replaced the 2012 Equity Incentive Compensation Plan (2012 Compensation Plan). The 2016 Compensation Plan provides for grants and awards of restricted stock, restricted stock units, performance grants, and other stock based awards to employees and non-employee directors and is administered by the Compensation Committee of the Company's Board of Directors (Compensation Committee). No share-based awards have been issued under the 2012 Compensation Plan after the effective date of the 2016 Compensation Plan. At December 31, 2018 , there were 220,831 shares available for future awards under the 2016 Compensation Plan. Restricted stock units are awarded to certain associates and executive officers based upon meeting performance conditions determined by the Compensation Committee. These awards generally vest at the end of the third year following the year for which the Compensation Committee determines performance conditions have been met. At the end of the vesting period, recipients are entitled to receive one share of the Company's common stock for each vested restricted stock unit. During 2018 , the Company awarded 11,214 restricted stock units to associates and executive officers based on performance conditions being met. Restricted stock units also are awarded to associates to assist the Company in securing or retaining the services of key employees. During 2018 , the Company awarded 2,102 restricted stock units to associates as a hiring or retention incentive. These awards generally vest over a three -year period and entitle the recipient to receive one share of the Company's common stock for each vested restricted stock unit. During 2018 , the Company awarded 990 shares of restricted stock to its non-employee directors. The shares awarded to non-employee directors will vest in 2019 . The following table summarizes nonvested share-based awards. Number of Awards Weighted Average Grant-Date Fair Value Nonvested awards at January 1, 2018 31,518 $ 808.63 Granted 14,306 1,121.68 Vested (24,535 ) 779.65 Forfeited (416 ) 914.94 Nonvested awards at December 31, 2018 20,873 $ 1,042.83 The fair value of the Company's share-based awards granted under the 2012 Compensation Plan and 2016 Compensation Plan was determined based on the closing price of the Company's common shares on the grant date. The fair value of the Company's share-based awards issued under the Markel Corporation Omnibus Incentive Plan, which preceded the 2012 Compensation Plan, was determined based on the average price of the Company's common shares on the grant date. The weighted average grant-date fair value of the Company's share-based awards granted in 2018 , 2017 and 2016 was $1,121.68 , $979.23 and $878.03 , respectively. As of December 31, 2018 , unrecognized compensation cost related to nonvested share-based awards was $8.8 million , which is expected to be recognized over a weighted average period of 1.8 years . The fair value of the Company's share-based awards that vested during 2018 , 2017 and 2016 was $19.1 million , $28.8 million and $29.8 million , respectively. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
Other Comprehensive Income (Loss) | 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 (loss) by component, net of taxes and noncontrolling interests. (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 (loss) before reclassifications 275,696 (11,710 ) (20,700 ) 243,286 Amounts reclassified from accumulated other comprehensive income (33,528 ) — 1,600 (31,928 ) Total other comprehensive income (loss) 242,168 (11,710 ) (19,100 ) 211,358 December 31, 2016 $ 1,714,930 $ (84,406 ) $ (64,658 ) $ 1,565,866 Other comprehensive income before reclassifications 787,339 10,403 3,092 800,834 Amounts reclassified from accumulated other comprehensive income (24,296 ) — 3,167 (21,129 ) Total other comprehensive income 763,043 10,403 6,259 779,705 December 31, 2017 $ 2,477,973 $ (74,003 ) $ (58,399 ) $ 2,345,571 Cumulative effect of adoption of ASU No. 2016-01 (2,597,976 ) 2,492 — (2,595,484 ) Cumulative effect of adoption of ASU No. 2018-02 401,539 1,314 — 402,853 January 1, 2018 281,536 (70,197 ) (58,399 ) 152,940 Other comprehensive loss before reclassifications (241,325 ) (16,455 ) — (257,780 ) Amounts reclassified from accumulated other comprehensive income (1) 7,849 — 2,341 10,190 Total other comprehensive income (loss) (233,476 ) (16,455 ) 2,341 (247,590 ) December 31, 2018 $ 48,060 $ (86,652 ) $ (56,058 ) $ (94,650 ) (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. The following table summarizes the tax expense (benefit) associated with each component of other comprehensive income (loss). Years Ended December 31, (dollars in thousands) 2018 2017 2016 Change in net unrealized gains on available-for-sale investments: (1) Net holding gains (losses) arising during the period $ (68,056 ) $ 372,469 $ 112,399 Change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period — — 6 Reclassification adjustments for net gains (losses) included in net income (loss) 2,086 (10,072 ) (12,462 ) Change in net unrealized gains on available-for-sale investments (65,970 ) 362,397 99,943 Change in foreign currency translation adjustments 1,523 28 1,037 Change in net actuarial pension loss 622 1,284 (4,192 ) Total $ (63,825 ) $ 363,709 $ 96,788 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. The following table presents the details of amounts reclassified from accumulated other comprehensive income into income , by component. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Unrealized holding gains on available-for-sale investments: (1) Other-than-temporary impairment losses $ — $ (7,589 ) $ (18,355 ) Net realized investment gains (losses), excluding other-than-temporary impairment losses (9,935 ) 41,957 64,345 Total before income taxes (9,935 ) 34,368 45,990 Income taxes 2,086 (10,072 ) (12,462 ) Reclassification of unrealized holding gains, net of taxes $ (7,849 ) $ 24,296 $ 33,528 Net actuarial pension loss: Underwriting, acquisition and insurance expenses $ (2,963 ) $ (3,815 ) $ (1,951 ) Income taxes 622 648 351 Reclassification of net actuarial pension loss, net of taxes $ (2,341 ) $ (3,167 ) $ (1,600 ) (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820, 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 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 and equity securities. Equity securities and available-for-sale investments are recorded at fair value on a recurring basis. Available-for-sale investments include fixed maturities 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 and equity securities are determined by the Company after considering various sources of information, including information provided by a third party pricing service. The pricing service provides prices for substantially all of the Company's fixed maturities and equity securities. In determining fair value, the Company generally does not adjust the prices obtained from the pricing service. The Company obtains an understanding of the pricing service's valuation methodologies and related inputs, which include, but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers, duration, credit ratings, estimated cash flows and prepayment speeds. The Company validates prices provided by the pricing service by reviewing prices from other pricing sources and analyzing pricing data in certain instances. The Company has evaluated the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs. Level 1 investments include those traded on an active exchange, such as the New York Stock Exchange. Level 2 investments include U.S. Treasury securities, 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 certain insurance-linked securities funds managed by MCIM that are not traded on an active exchange, as further described and defined in note 16 (the Markel CATCo Funds), and are valued using unobservable inputs. Fair value for investments available-for-sale and equity securities 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 Markel CATCo Funds, these investments are classified as Level 3 within the fair value hierarchy. 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 Markel CATCo 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 Markel CATCo Funds in exchange for notes receivable, rather than cash, which is excluded from NAV. The determination of fair value of the securities also considers external market data, including the trading price relative to its NAV of CATCo Reinsurance Opportunities Fund Ltd. (CROF), a comparable security traded on a market operated by the London Stock Exchange and on the Bermuda Stock Exchange further described in note 16. Generally, the Company's investments in the Markel CATCo Funds are redeemable annually as of January 1 st of each calendar year. However, in years with significant loss events on the underlying securitized reinsurance contracts, as was the case in 2018 and 2017, certain investments may be restricted from redemption for up to three years. 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. 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. December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investments: Fixed maturities, available-for-sale: U.S. Treasury securities $ — $ 246,642 $ — $ 246,642 U.S. government-sponsored enterprises — 359,322 — 359,322 Obligations of states, municipalities and political subdivisions — 4,352,930 — 4,352,930 Foreign governments — 1,559,604 — 1,559,604 Commercial mortgage-backed securities — 1,650,199 — 1,650,199 Residential mortgage-backed securities — 880,172 — 880,172 Asset-backed securities — 19,408 — 19,408 Corporate bonds — 974,911 — 974,911 Total fixed maturities, available-for-sale — 10,043,188 — 10,043,188 Equity securities: Insurance, banks and other financial institutions 1,876,811 — 53,728 1,930,539 Industrial, consumer and all other 3,790,406 — — 3,790,406 Total equity securities 5,667,217 — 53,728 5,720,945 Short-term investments, available-for-sale 981,616 96,080 — 1,077,696 Total investments $ 6,648,833 $ 10,139,268 $ 53,728 $ 16,841,829 December 31, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investments available-for-sale: Fixed maturities: U.S. Treasury securities $ — $ 160,613 $ — $ 160,613 U.S. government-sponsored enterprises — 363,520 — 363,520 Obligations of states, municipalities and political subdivisions — 4,566,562 — 4,566,562 Foreign governments — 1,489,228 — 1,489,228 Commercial mortgage-backed securities — 1,234,326 — 1,234,326 Residential mortgage-backed securities — 856,168 — 856,168 Asset-backed securities — 34,728 — 34,728 Corporate bonds — 1,235,525 — 1,235,525 Total fixed maturities — 9,940,670 — 9,940,670 Equity securities: (1) Insurance, banks and other financial institutions 1,934,224 — 168,809 2,103,033 Industrial, consumer and all other 3,864,814 — — 3,864,814 Total equity securities 5,799,038 — 168,809 5,967,847 Short-term investments 2,065,749 95,225 — 2,160,974 Total investments available-for-sale (1) $ 7,864,787 $ 10,035,895 $ 168,809 $ 18,069,491 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See note 1. The following table summarizes changes in Level 3 investments measured at fair value on a recurring basis. (dollars in thousands) 2018 2017 Equity securities, beginning of period $ 168,809 $ 191,203 Purchases 28,900 56,250 Sales (35,335 ) (26,674 ) Net investment losses on Level 3 investments (1) (108,646 ) (51,970 ) Transfers into Level 3 — — Transfers out of Level 3 — — Equity securities, end of period $ 53,728 $ 168,809 (1) Included in change in fair value of equity securities in the consolidated statements of income (loss) and comprehensive income (loss) for the years ended December 31, 2018 and 2017. Net investment losses related to the Company's investments in the Markel CATCo Funds primarily resulted from decreases in the NAV of these funds in both 2018 and 2017. The Company also holds an investment in CROF which is a Level 1 investment included in equity securities on the Company's consolidated balance sheets. CROF is managed by MCIM and invests substantially all of its assets in one of the unconsolidated Markel CATCo Funds. Net investment losses in 2018 also included a loss of $16.0 million related to the Company's investment in CROF. In 2017, the Company’s investment in CROF was considered an available-for-sale security, with changes in fair value included in other comprehensive income. Other comprehensive income for 2017 included a loss of $5.8 million attributable to the Company’s investment in CROF. At December 31, 2018 and 2017 , the fair value of the Company's investment in CROF was $4.5 million and $20.5 million , respectively. There were no transfers into or out of Level 1 and Level 2 during 2018 or 2017 . Except as disclosed in note 2 , the Company did not have any assets or liabilities measured at fair value on a non-recurring basis during the years ended December 31, 2018 and 2017 . |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance In reinsurance and retrocession transactions, an insurance or reinsurance company transfers, or cedes, all or part of its exposure in return for a portion of the premium. The ceding of insurance does not legally discharge the Company from its primary liability for the full amount of the policies, and the Company will be required to pay the loss and bear collection risk if the reinsurer fails to meet its obligations under the reinsurance or retrocessional agreement. A credit risk exists with ceded reinsurance to the extent that any reinsurer is unable to meet the obligations assumed under the reinsurance or retrocessional contracts. Allowances are established for amounts deemed uncollectible. Within its underwriting operations, the Company uses reinsurance and retrocessional reinsurance to manage its net retention on individual risks and overall exposure to losses while providing it with the ability to offer policies with sufficient limits to meet policyholder needs. The Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk arising from its exposure to individual reinsurers. To further reduce credit exposure to reinsurance recoverable balances, the Company has received collateral, including letters of credit and trust accounts, from certain reinsurers. Collateral related to these reinsurance agreements is available, without restriction, when the Company pays losses covered by the reinsurance agreements. Within the Company's underwriting operations, at both December 31, 2018 and 2017 , balances recoverable from the ten largest reinsurers, by group, represented 61% of the reinsurance recoverable on paid and unpaid losses, before considering reinsurance allowances and collateral. At December 31, 2018 , the largest reinsurance balance was due from Fairfax Financial Group and represented 9% of the reinsurance recoverable on paid and unpaid losses, before considering reinsurance allowances and collateral. Within the Company's program services business, acquired as a part of the State National acquisition in November 2017, the Company generally enters into 100% quota share reinsurance agreements whereby the Company cedes to the capacity provider (reinsurer) substantially all of its gross liability under all policies issued by and on behalf of the Company by the general agent. The Company remains exposed to the credit risk of the reinsurer, or the risk that one of its reinsurers becomes insolvent or otherwise unable or unwilling to pay policyholder claims. This credit risk is generally mitigated by either selecting well capitalized, highly rated authorized capacity providers or requiring that the capacity provider post substantial collateral to secure the reinsured risks. Within the Company's program services business, at December 31, 2018 and 2017, balances recoverable from the ten largest reinsurers, by group, represented 75% and 79% , respectively, of the reinsurance recoverable on paid and unpaid losses, before considering reinsurance allowances and collateral. At December 31, 2018 , the largest reinsurance balance was due from Fosun International Holdings Ltd. and represented 24% of the reinsurance recoverable on paid and unpaid losses, before considering reinsurance allowances and collateral. The following tables summarize the effect of reinsurance and retrocessional reinsurance on premiums written and earned. Year Ended December 31, 2018 (dollars in thousands) Direct Assumed Ceded Net Premiums Underwriting: Written $ 4,562,256 $ 1,236,740 $ (1,013,406 ) $ 4,785,590 Earned $ 4,384,562 $ 1,291,032 $ (964,549 ) $ 4,711,045 Program services: Written 2,022,548 42,925 (2,063,485 ) 1,988 Earned 1,850,656 28,581 (1,878,222 ) 1,015 Consolidated: Written $ 6,584,804 $ 1,279,665 $ (3,076,891 ) $ 4,787,578 Earned $ 6,235,218 $ 1,319,613 $ (2,842,771 ) $ 4,712,060 Year Ended December 31, 2017 (dollars in thousands) Direct Assumed Ceded Net Premiums Underwriting: Written $ 3,919,602 $ 1,333,505 $ (835,320 ) $ 4,417,787 Earned $ 3,777,335 $ 1,286,043 $ (815,400 ) $ 4,247,978 Program services: Written 252,865 988 (253,853 ) — Earned 291,287 1,352 (292,639 ) — Consolidated: Written $ 4,172,467 $ 1,334,493 $ (1,089,173 ) $ 4,417,787 Earned $ 4,068,622 $ 1,287,395 $ (1,108,039 ) $ 4,247,978 Year Ended December 31, 2016 (dollars in thousands) Direct Assumed Ceded Net Premiums Underwriting: Written $ 3,560,635 $ 1,236,010 $ (795,625 ) $ 4,001,020 Earned $ 3,506,687 $ 1,176,205 $ (817,022 ) $ 3,865,870 Program services: Written — — — — Earned — — — — Consolidated: Written $ 3,560,635 $ 1,236,010 $ (795,625 ) $ 4,001,020 Earned $ 3,506,687 $ 1,176,205 $ (817,022 ) $ 3,865,870 Substantially all of the premium written and earned in the Company's program services business for the year ended December 31, 2018 and 2017 was ceded. The percentage of consolidated ceded earned premiums to gross earned premiums was 38% , 21% and 17% for the years ended December 31, 2018 , 2017 and 2016 , respectively. The percentage of consolidated assumed earned premiums to net earned premiums was 28% , 30% and 30% for the years ended December 31, 2018 , 2017 and 2016 , respectively. Substantially all of the incurred losses and loss adjustment expenses in the Company's program services business, which totaled $1.3 billion , were ceded. Incurred losses and loss adjustment expenses for the Company's underwriting operations were net of ceded incurred losses and loss adjustment expenses of $710.5 million , $856.8 million and $362.0 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The estimated net losses and loss adjustment expenses on the 2018 and 2017 Catastrophes were net of estimated ceded losses of $244.1 million and $490.3 million , respectively. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities MCIM, a wholly-owned consolidated subsidiary of the Company, is an insurance-linked securities investment fund manager and reinsurance manager headquartered in Bermuda. Results attributable to MCIM are not included in a reportable segment. MCIM serves as the insurance manager for Markel CATCo Re, a Bermuda Class 3 reinsurance company, and as the investment manager for Markel CATCo Reinsurance Fund Ltd., a Bermuda exempted mutual fund company comprised of multiple segregated accounts (Markel CATCo Funds). MCIM also serves as the investment manager to CATCo Reinsurance Opportunities Fund Ltd. (CROF), a limited liability closed-end Bermuda exempted mutual fund company which invests substantially all of its assets in Markel CATCo Reinsurance Fund Ltd. The Markel CATCo Funds issue multiple classes of nonvoting, redeemable preference shares to investors and the Markel CATCo Funds are primarily invested in nonvoting preference shares of Markel CATCo Re. The underwriting results of Markel CATCo Re are attributed to the Markel CATCo Funds through those nonvoting preference shares. The Markel CATCo Funds and Markel CATCo Re 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 Markel CATCo Funds or Markel CATCo Re, and therefore does not consolidate these entities, 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 and incentive fees earned by the Company from unconsolidated Markel CATCo Funds were $66.2 million , $28.7 million and $56.5 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The Company is the sole investor in one of the Markel CATCo Funds, the Marke l Diversified Fund, and consolidates that fund as its primary beneficiary. The following table presents the assets and liabilities of the Markel Diversified Fund, which are included in the Company's consolidated balance sheet. December 31, (dollars in thousands) 2018 2017 Assets Equity securities: Investment in unconsolidated Markel CATCo Fund $ 27,547 $ 168,192 Other 1,082 2,059 Total Assets $ 28,629 $ 170,251 Liabilities Note payable $ 24,875 $ 62,500 Other 200 168 Total Liabilities $ 25,075 $ 62,668 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. Equity securities for the Markel Diversified Fund represent an investment in one of the unconsolidated Markel CATCo Funds, and represents 2% of the outstanding preference shares of that fund as of December 31, 2018 and 7% as of December 31, 2017 . The note payable was delivered as part of the consideration provided for the Markel Diversified Fund's investment in the unconsolidated Fund. 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. During 2018, the Company also made an investment in another one of the Markel CATCo Funds ( $26.2 million as of December 31, 2018 ) but does not have the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE, and therefore does not consolidate that fund. The Company also holds an investment in CROF, which is not a VIE. See note 14. As of December 31, 2018, the Company's exposure to risk from the unconsolidated Markel CATCo Funds and Markel CATCo Re is generally limited to its investment and any earned but uncollected fees. See note 17 for details regarding reinsurance contracts entered into in 2019 by the Company on behalf of Markel CATCo Re. The Company has not issued any investment performance guarantees to these VIEs or their investors. As of December 31, 2018 , net assets under management of MCIM for unconsolidated VIEs were $3.4 billion . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company engages in certain related party transactions in the normal course of business at arm's length. Details of the Company's transactions with related parties in its investment management operations are included below. Nephila In November 2018, the Company expanded its investment management operations through the acquisition of Nephila, which serves as the investment manager to several Bermuda, Ireland and U.S. based private funds (the Nephila Funds). To provide access for the Nephila Funds to the insurance, reinsurance and weather markets, Nephila also acts as an insurance manager to certain Bermuda Class 3 and 3A reinsurance companies and as both a service company coverholder and agent with binding authority for Lloyd’s Syndicate 2357 (Syndicate 2357) (collectively, the Nephila Reinsurers). Nephila receives management fees for its investment and insurance management services from these unconsolidated affiliates based on the net asset value of the accounts managed, and for certain funds, incentive fees based on the annual performance of the funds it manages. Total revenues attributed to the management contracts with the Nephila Funds and the Nephila Reinsurers from the acquisition date to December 31, 2018 were $24.4 million . Within the Company’s program services business, the Company has a program with Nephila and Lloyd’s Syndicate 2357 (Syndicate 2357), one of its unconsolidated affiliates, through which the Company writes insurance policies that are ceded to Syndicate 2357. Through this arrangement, Nephila has the exclusive right, through 2019, to utilize certain of the Company’s licensed insurance companies to write U.S. catastrophe exposed property risk that will then be ceded to Syndicate 2357. For the year ended December 31, 2018 , gross premiums written on the Company’s program with Nephila were $322.1 million , all of which was ceded to Syndicate 2357. As of December 31, 2018 , reinsurance recoverables on the consolidated balance sheet included $179.8 million due from Syndicate 2357. Under this program, the Company also bears underwriting risk for annual aggregate agreement year losses in excess of a limit the Company believes is highly unlikely to be exceeded. To the extent losses under this program exceed the prescribed limit, the Company is obligated to pay such losses to the cedents without recourse to Syndicate 2357. While the Company believes losses under this program are highly unlikely, those losses, if incurred, could be material to the Company’s consolidated results of operations and financial condition. Markel CATCo Within the Company's reinsurance operations, the Company enters into reinsurance contracts that are ceded to Markel CATCo Re, an unconsolidated subsidiary. Under this program, the Company retains underwriting risk for annual aggregate agreement year losses in excess of a limit the Company believes is highly unlikely to be exceeded. To the extent losses under this program exceed the prescribed limit, the Company is obligated to pay such losses to the cedents without recourse to Markel CATCo Re. For the years ended December 31, 2018 , 2017 and 2016 , gross premiums written on behalf of Markel CATCo Re were $10.9 million , $9.7 million and $6.7 million , respectively. In early 2019, the Company committed to enter into various reinsurance contracts with third parties on behalf of Markel CATCo Re. These reinsurance contracts will primarily cover losses for events that may occur during 2019, however, in some instances, coverage will also provide for adverse development on 2018 and prior accident years’ loss events. Incurred losses on these contracts will be fully ceded to Markel CATCo Re. The loss exposures on these contracts will be fully collateralized by Markel CATCo Re up to an amount that the Company believes is highly unlikely to be exceeded. The Company will have credit risk from Markel CATCo Re for any uncollateralized amounts. Markel CATCo Re's ability to pay losses in excess of the collateralized amounts will depend on the availability of funds that are not otherwise needed to pay losses on other contracts. The Company's maximum exposure to loss on these contracts, representing the net uncollateralized risks, is not expected to exceed $250 million in 2019. See note 16 for details of the Company's other transactions with Markel CATCo Re and the Markel CATCo Funds. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies a) The Company leases substantially all of its facilities and certain furniture and equipment under noncancelable operating leases with remaining terms up to 16 years . The following table summarizes the Company's minimum annual rental commitments, excluding taxes, insurance and other operating costs payable directly by the Company, for noncancelable operating leases at December 31, 2018 . Years Ending December 31, (dollars in thousands) 2019 $ 48,853 2020 41,630 2021 37,602 2022 31,898 2023 28,261 2024 and thereafter 117,663 Total $ 305,907 Rental expense was $52.9 million , $44.6 million and $40.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. b) Late in the fourth quarter of 2018, the Company was contacted by and received inquiries from the U.S. Department of Justice, U.S. Securities and Exchange Commission and Bermuda Monetary Authority (BMA) into loss reserves recorded in late 2017 and early 2018 at Markel CATCo Re (the Markel CATCo Inquiries), an unconsolidated subsidiary managed by MCIM. As a result, the Company engaged outside counsel to conduct an internal review, through which the Company discovered violations of Markel policies by two senior executives of MCIM that existed as of December 31, 2018. As a result, these two executives are no longer with the Company (the MCIM Executive Departures). As of December 31, 2017 , the Company had accrued incentive and retention compensation for the two executives totaling $34.9 million which remained unpaid as of December 31, 2018 . This amount was reversed in the fourth quarter of 2018 and reflected as a reduction to services and other expenses. All accruals for retention and incentive compensation recorded earlier in 2018 for the two executives were also reversed in the fourth quarter of 2018. In conjunction with the Markel CATCo acquisition in December 2015, certain incentive and retention compensation arrangements were established for employees of MCIM, a portion of which was based on expected management fees over the three year period following the acquisition. The Company’s initial estimate of the amounts payable under the incentive and retention compensation arrangements totaled $100 million , portions of which were paid in 2016, 2017 and 2018. After considering the reversal of accruals described above, the Company’s total expected payments under these arrangements across all years is $52.9 million . As of December 31, 2018 , accrued and unpaid incentive and retention expense for other employees of MCIM totaled $19.2 million , of which $12.3 million was expensed during the year ended December 31, 2018 . Compensation expense for the years ended December 31, 2017 and 2016 included $38.1 million and $33.2 million , respectively, for these incentive and retention compensation arrangements. In light of the governmental inquiries into loss reserves at Markel CATCo Re, and taking into consideration the departure of two senior MCIM executives and special redemption rights that are now being offered to investors in the Markel CATCo Funds, as described below, management concluded MCIM’s ability to maintain or raise capital has been adversely impacted. Following an assessment of the recoverability of goodwill and intangible assets at the MCIM reporting unit as of December 31, 2018, the Company reduced the carrying value of the goodwill and intangible assets of the MCIM reporting unit to zero , which resulted in a goodwill impairment charge of $91.9 million and an intangible asset impairment charge of $87.1 million . See note 7 for further details around these impairment charges. In December 2018, investors in the Markel CATCo Funds were offered an additional redemption opportunity (the Special Redemption). Under the Special Redemption, investors in the Markel CATCo Funds may elect to redeem any or all shares held as of June 30, 2019, with the exception of (1) shares that have been restricted following the occurrence of catastrophic loss events for which uncertainty still exists around the ultimate incurred losses on the underlying reinsurance contracts at Markel CATCo Re and (2) shares that support insurance contracts that are still exposed to future underwriting risk. Investors may elect to redeem these restricted shares, however, such amounts will not be paid until all remaining exposures are fully settled or released by cedents, which could take up to four years. Payment for the redemptions of shares is an obligation of the Markel CATCo Funds, not Markel Corporation or its subsidiaries. On January 11, 2019, a putative class action lawsuit captioned Bergen v. Markel Corporation, et al., was filed naming Markel Corporation and certain present or former officers as defendants (the Bergen Suit). The lawsuit alleges violations of the federal securities laws relating to the pending governmental inquiries into Markel CATCo Re loss reserves. The plaintiff in this matter seeks to represent a class of persons or entities that purchased Markel Corporation securities between July 26, 2017 and December 6, 2018. The Company believes that the claims against it are without merit. The Company further believes any material loss resulting from the suit to be remote. On February 21, 2019, Anthony Belisle and Alissa Fredricks, the two senior executives who are no longer with MCIM, each separately filed suit against MCIM and Markel Corporation, alleging, among other claims, breach of contract, defamation and invasion of privacy (the MCIM Executive Suits). Mr. Belisle's complaint seeks relief including payment of $66.0 million in incentive compensation and Ms. Fredricks's complaint seeks relief including payment of $7.5 million in incentive compensation. In addition, both seek consequential damages, damages for emotional distress and injury to reputation, statutory interest and attorneys’ fees. Mr. Belisle's complaint further seeks enhanced compensatory damages. The Company believes that all claims are without merit. The Company further believes any material loss resulting from the suits to be remote. The Company’s internal review relating to the governmental inquiries is ongoing with no conclusions reached at this time. The Markel CATCo Inquiries, Bergen Suit, MCIM Executive Departures and MCIM Executive Suits, as well as other related matters of which the Company is currently unaware, could result in additional claims, litigation, investigations, enforcement actions or proceedings. For example, additional litigation may be filed by investors in the Markel CATCo Funds. The Company also could become subject to increased regulatory scrutiny, investigations or proceedings in any of the jurisdictions where it operates. If any regulatory authority takes action against the Company or the Company enters into an agreement to settle a matter, the Company may incur sanctions or be required to pay substantial fines or implement remedial measures that could prove costly or disruptive to its businesses and operations. An unfavorable outcome in one or more of these matters, and others the Company cannot anticipate, could have a material adverse effect on the Company’s results of operations and financial condition. In addition, the Company may take further steps to support the Markel CATCo operations, including steps to mitigate potential risks or liabilities that may arise from the Markel CATCo Inquiries and related developments and some of those steps may have a material impact on the Company’s results of operations or financial condition. Even if an unfavorable outcome does not materialize, these matters, and actions the Company may take in response, could have an adverse impact on the Company’s reputation and result in substantial expense and disruption. Additionally, revenues for MCIM for 2019 and beyond will be adversely impacted by its inability to maintain or raise new capital. Costs associated with the Company's internal review, including legal and investigation costs, as well as legal costs incurred in connection with any existing or future litigation, will be expensed as incurred. c) The Company has reviewed events at one of its Markel Ventures products businesses. Since becoming aware of a matter in the first quarter of 2018 related to the business's manufacture of products, the Company has conducted an investigation, reviewed the business's operations and developed remediation plans. Upon completion of its review during the second quarter of 2018, the Company recorded an expense of $33.5 million in its results of operations. This amount represented management’s best estimate of amounts considered probable including: remediation costs associated with the manufacture of products, costs associated with the investigation of this matter, a write down of inventory on hand and settlement costs related to pre-existing litigation. The Company also recorded an impairment charge of $14.9 million during 2018 which reduced the carrying value of intangible assets at this reporting unit to zero . Final resolution of this matter could ultimately result in additional remediation and other costs, the amount of which cannot be estimated at this time, but which could have a material impact on the Company’s income before income taxes. However, management does not expect this matter ultimately will have a material adverse effect on the Company’s results of operations or financial condition. If a determination is made that additional costs associated with this matter are considered probable, these additional costs will be recognized as an expense in the Company's results of operations. As of December 31, 2018, $33.5 million remained accrued for remediation efforts which are continuing into 2019. 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. |
Statutory Financial Information
Statutory Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Statutory Financial Information [Abstract] | |
Statutory Financial Information | Statutory Financial Information a) Statutory capital and surplus and statutory net income (loss) for the Company's insurance subsidiaries as of December 31, 2018 and 2017 and for the years ended December 31, 2018 , 2017 and 2016 , respectively, is summarized below. Statutory Capital and Surplus December 31, (dollars in thousands) 2018 2017 United States $ 3,158,828 $ 3,424,330 United Kingdom $ 621,802 $ 642,418 Bermuda $ 1,495,563 $ 1,779,387 Other $ 74,704 $ 34,002 As of December 31, 2018 , the Company's actual statutory capital and surplus significantly exceeded the regulatory requirements. As a result, the amount of statutory capital and surplus necessary to satisfy regulatory requirements is not significant in relation to actual statutory capital and surplus. Statutory Net Income (Loss) Years Ended December 31, (dollars in thousands) 2018 2017 2016 United States $ 414,957 $ 312,828 $ 249,176 United Kingdom $ 40,203 $ (25,785 ) $ 78,033 Bermuda $ (131,411 ) $ (78,070 ) $ 132,442 Other $ (5,193 ) $ (4,812 ) $ (965 ) The Solvency II Directive that governs the calculation of statutory capital and surplus for the Company's U.K. and German insurance subsidiaries does not provide requirements for the calculation of net income. Amounts presented in the table above for the Company's U.K. and German insurance subsidiaries, in which the amount attributable to Germany is included in Other, have been calculated in accordance with U.K. and German GAAP, respectively. United States The laws of the domicile states of the Company's U.S. insurance subsidiaries govern the amount of dividends that may be paid to the Company. Generally, statutes in the domicile states of the Company's U.S. insurance subsidiaries require prior approval for payment of extraordinary, as opposed to ordinary, dividends. At December 31, 2018 , the Company's U.S. insurance subsidiaries could pay up to $466.0 million to the Company during the following 12 months under the ordinary dividend regulations. In converting from U.S. statutory accounting principles to U.S. GAAP, typical adjustments include deferral of policy acquisition costs, differences in the calculation of deferred income taxes and the inclusion of net unrealized gains or losses relating to fixed maturities in shareholders' equity. The Company does not use any permitted statutory accounting practices that are different from prescribed statutory accounting practices which impact statutory capital and surplus. United Kingdom The Company's U.K. insurance subsidiary, Markel International Insurance Company Limited (MIICL), and its Lloyd's managing agent, Markel Syndicate Management Limited (MSM), are authorized by the Prudential Regulation Authority (PRA) and regulated by both the PRA and the Financial Conduct Authority (FCA). The PRA oversees compliance with established periodic auditing and reporting requirements, minimum solvency margins and individual capital assessment requirements under the Solvency II Directive and imposes dividend restrictions, while both the PRA and the FCA oversee compliance with risk assessment reviews and various other requirements. MIICL is required to give advance notice to the PRA for any transaction or proposed transaction with a connected or related person. MSM is required to satisfy the solvency requirements of Lloyd's. In addition, the Company's U.K. subsidiaries must comply with the United Kingdom Companies Act of 2006, which provides that dividends may only be paid out of profits available for that purpose. As of December 31, 2018 , earnings of the Company's U.K. insurance subsidiaries are no longer considered indefinitely reinvested for U.S. income tax purposes and, as a result, are available for distribution to the holding company to the extent not otherwise restricted. Amounts available for distribution to the holding company will be determined during 2019. Bermuda The Company's Bermuda insurance subsidiary, Markel Bermuda Limited (Markel Bermuda), is subject to enhanced capital requirements in addition to minimum solvency and liquidity requirements. The enhanced capital requirement is determined by reference to a risk-based capital model that determines a control threshold for statutory capital and surplus by taking into account the risk characteristics of different aspects of the insurer's business. At December 31, 2018 , Markel Bermuda satisfied both the enhanced capital requirements and the minimum solvency and liquidity requirements. Under the Bermuda Insurance Act, Markel Bermuda is prohibited from paying or declaring dividends during a fiscal year if it is in breach of its enhanced capital requirement, solvency margin or minimum liquidity ratio or if the declaration or payment of the dividend would cause a breach of those requirements. If an insurer fails to meet its solvency margin or minimum liquidity ratio on the last day of any financial year, it is prohibited from declaring or paying any dividends during the next financial year without the approval of the BMA. Further, Markel Bermuda is prohibited from declaring or paying, in any financial year, dividends of more than 25% of its total statutory capital and surplus as set forth in its previous year's statutory balance sheet unless at least seven days before payment of those dividends it files with the BMA an affidavit stating that it will continue to meet its solvency margin and minimum liquidity ratio. Markel Bermuda must obtain the BMA's prior approval for a reduction by 15% or more of the total statutory capital as set forth in its previous year's financial statements. In addition, as a long-term insurer, Markel Bermuda may not declare or pay a dividend to any person other than a policyholder unless the value of the assets in its long-term business fund, as certified by Markel Bermuda's approved actuary, exceeds the liabilities of its long-term business. The amount of the dividend cannot exceed the aggregate of that excess and any other funds legally available for the payment of the dividend. As of December 31, 2018 , Markel Bermuda could pay up to $373.9 million during the following 12 months without making any additional filings with the BMA. Other Jurisdictions The Company's other foreign subsidiaries are subject to capital and solvency requirements in their respective jurisdictions of domicile that govern their ability to declare and pay dividends. As of December 31, 2018 , earnings of the Company's other foreign subsidiaries, to the extent not previously taxed in the U.S., are considered reinvested indefinitely for U.S. income tax purposes and will not be made available for distributions to the holding company. b) Lloyd's sets the corporate members' required capital annually based on each syndicates' business plans, rating environment, reserving environment and input arising from Lloyd's discussions with, among others, regulatory and rating agencies. Such required capital is referred to as Funds at Lloyd's (FAL), and comprises cash and investments. The amount of cash and investments held as FAL as of December 31, 2018 was $864.3 million . Of this amount, $311.6 million was provided by the holding company and is not available for general use by the Company. The remaining amount, provided by the Company's insurance subsidiaries, is not available for distribution to the holding company. The Co mpany's c orporate member may also be required to maintain funds under the control of Lloyd's in excess of their capital requirements and such funds also may not be available for distribution to the holding company. |
Segment Reporting Disclosures
Segment Reporting Disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment Reporting Disclosures | Segment Reporting Disclosures Through December 31, 2017, the Company monitored and reported its ongoing underwriting operations in the following three segments: U.S. Insurance, International Insurance and Reinsurance. In conjunction with the Company's continued growth and diversification, beginning in the first quarter of 2018 the Company's chief operating decision maker changed the way it reviews the Company's ongoing underwriting results. Effective January 1, 2018, the chief operating decision maker reviews the Company's ongoing underwriting operations on a global basis in the following two segments: Insurance and Reinsurance. In determining how to allocate resources and assess the performance of its underwriting results, management considers many factors, including the nature of the insurance product sold, the type of account written and the type of customer served. The Insurance segment includes all direct business and facultative placements written across the Company. The Reinsurance segment includes all treaty reinsurance written across the Company. All investing activities related to the Company's insurance operations are included in the Investing segment. Also during the first quarter of 2018, the Company's chief operating decision maker changed the way it assesses the performance of and allocates resources to its Markel Ventures operations. Historically, the Company’s chief operating decision maker reviewed and assessed the performance of each Markel Ventures business separately with no single business being individually significant. Following the continued growth in the Company’s Markel Ventures operations, effective January 1, 2018, the chief operating decision maker reviews and assesses Markel Ventures’ performance in the aggregate, as a single operating segment. The Markel Ventures segment primarily consists of controlling interests in a diverse portfolio of businesses that operate in various industries. Prior period amounts in the tables below have been recast for consistency with the current segment presentation. The Company's other operations include the results of the Company's legal and professional consulting services and the results of the Company's investment management services attributable to MCIM and, beginning November 2018, Nephila. The Company's other operations also include results for lines of business discontinued prior to, or in conjunction with, acquisitions, including development on asbestos and environmental loss reserves and results attributable to the run-off of life and annuity reinsurance business, which are monitored separately from the Company's ongoing underwriting operations. Beginning November 2017, the Company's other operations also include the results of the program services business acquired as part of the State National transaction. For purposes of segment reporting, none of these other operations are considered to be reportable segments. Segment profit for each of the Company's underwriting segments is measured by underwriting profit. The property and casualty insurance industry commonly defines underwriting profit as earned premiums net of losses and loss adjustment expenses and underwriting, acquisition and insurance expenses. Underwriting profit 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 for the Investing segment is measured by net investment income and net investment gains. Segment profit for the Markel Ventures segment is measured by operating income. For management reporting purposes, the Company allocates assets to its underwriting, investing, Markel Ventures, and other operations. Underwriting assets are all assets not specifically allocated to the Investing or Markel Ventures segments, or to the Company's other operations. Underwriting and investing assets are not allocated to the Insurance and Reinsurance segments since the Company does not manage its assets by underwriting segment. The Company does not allocate capital expenditures for long-lived assets to either of its underwriting segments for management reporting purposes. a) The following tables summarize the Company's segment disclosures. Year Ended December 31, 2018 (dollars in thousands) Insurance Reinsurance Investing Markel Ventures Other (1) Consolidated Gross premium volume $ 4,749,166 $ 1,050,870 $ — $ — $ 2,064,433 $ 7,864,469 Net written premiums 3,904,773 882,285 — — 520 4,787,578 Earned premiums 3,783,939 928,574 — — (453 ) 4,712,060 Losses and loss adjustment expenses: Current accident year (2,596,057 ) (775,642 ) — — — (3,371,699 ) Prior accident years 502,260 42,982 — — 5,742 550,984 Amortization of policy acquisition costs (770,183 ) (239,120 ) — — — (1,009,303 ) Other operating expenses (691,186 ) (75,081 ) — — (1,941 ) (768,208 ) Underwriting profit (loss) 228,773 (118,287 ) — — 3,348 113,834 Net investment income — — 433,702 513 — 434,215 Net investment losses (2) — — (437,596 ) — — (437,596 ) Products revenues — — — 1,497,523 — 1,497,523 Services and other revenues — — — 414,542 220,541 635,083 Products expenses (3) — — — (1,413,248 ) — (1,413,248 ) Services and other expenses (3) — — — (366,739 ) (108,185 ) (474,924 ) Amortization of intangible assets (4) — — — (40,208 ) (75,722 ) (115,930 ) Impairment of goodwill and intangible assets — — — (14,904 ) (184,294 ) (199,198 ) Segment profit (loss) $ 228,773 $ (118,287 ) $ (3,894 ) $ 77,479 $ (144,312 ) $ 39,759 Interest expense (154,212 ) Net foreign exchange gains 106,598 Loss before income taxes $ (7,855 ) U.S. GAAP combined ratio (5) 94 % 113 % NM (6) 98 % (1) Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets and impairment of goodwill and intangible assets that are not allocated to a reportable segment. (2) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment losses within net income. Prior periods have not been restated to conform to the current presentation. See note 1. (3) Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $52.2 million for the year ended December 31, 2018 . (4) Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. (5) 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. (6) NM - Ratio is not meaningful Year Ended December 31, 2017 (dollars in thousands) Insurance Reinsurance Investing Markel Ventures Other (1) Consolidated Gross premium volume $ 4,141,201 $ 1,112,101 $ — $ — $ 253,658 $ 5,506,960 Net written premiums 3,439,796 978,160 — — (169 ) 4,417,787 Earned premiums 3,314,033 934,114 (169 ) 4,247,978 Losses and loss adjustment expenses: Current accident year (2,442,344 ) (924,879 ) — — — (3,367,223 ) Prior accident years 500,627 (7,803 ) — — 8,638 501,462 Amortization of policy acquisition costs (675,470 ) (218,883 ) — — — (894,353 ) Other operating expenses (611,749 ) (82,567 ) — — (795 ) (695,111 ) Underwriting profit (loss) 85,097 (300,018 ) — — 7,674 (207,247 ) Net investment income — — 405,377 332 405,709 Net investment losses (2) — — (5,303 ) — (5,303 ) Products revenues — — — 951,012 — 951,012 Services and other revenues — — — 382,268 79,995 462,263 Products expenses (3) — — — (850,449 ) — (850,449 ) Services and other expenses (3) — — — (336,484 ) (122,137 ) (458,621 ) Amortization of intangible assets (4) — — — (31,429 ) (49,329 ) (80,758 ) Segment profit (loss) $ 85,097 $ (300,018 ) $ 400,074 $ 115,250 $ (83,797 ) $ 216,606 Interest expense (132,451 ) Net foreign exchange gains 3,140 Income before income taxes $ 87,295 U.S. GAAP combined ratio (5) 97 % 132 % NM (6) 105 % (1) Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets that is not allocated to a reportable segment. (2) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment losses within net income. Prior periods have not been restated to conform to the current presentation. See note 1. (3) Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $41.7 million for the year ended December 31, 2017 . (4) Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. (5) 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. (6) NM - Ratio is not meaningful Year Ended December 31, 2016 (dollars in thousands) Insurance Reinsurance Investing Markel Ventures Other (1) Consolidated Gross premium volume $ 3,755,081 $ 1,041,055 $ — $ — $ 509 $ 4,796,645 Net written premiums 3,101,657 898,728 — — 635 4,001,020 Earned premiums 3,028,844 836,264 — — 762 3,865,870 Losses and loss adjustment expenses: Current accident year (2,009,426 ) (546,476 ) — — — (2,555,902 ) Prior accident years 369,594 125,514 — — 10,050 505,158 Amortization of policy acquisition costs (592,766 ) (189,455 ) — — — (782,221 ) Other operating expenses (597,201 ) (116,642 ) — — (1,061 ) (714,904 ) Underwriting profit 199,045 109,205 — — 9,751 318,001 Net investment income — — 373,121 109 373,230 Net investment gains (2) — — 65,147 — 65,147 Products revenues — — — 885,473 — 885,473 Services and other revenues — — — 328,976 93,330 422,306 Products expenses (3) — — — (755,591 ) — (755,591 ) Services and other expenses (3) — — — (297,841 ) (118,300 ) (416,141 ) Amortization of intangible assets (4) — — — (29,105 ) (39,428 ) (68,533 ) Impairment of goodwill and intangible assets — — — (18,723 ) — (18,723 ) Segment profit (loss) $ 199,045 $ 109,205 $ 438,268 $ 113,298 $ (54,647 ) $ 805,169 Interest expense (129,896 ) Loss on early extinguishment of debt (44,100 ) Net foreign exchange losses (1,253 ) Income before income taxes $ 629,920 U.S. GAAP combined ratio (5) 93 % 87 % NM (6) 92 % (1) Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets and impairment of goodwill and intangible assets that are not allocated to a reportable segment. (2) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment gains within net income. Prior periods have not been restated to conform to the current presentation. See note 1. (3) Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $35.5 million for the year ended December 31, 2016 . (4) Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. (5) 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. (6) NM - Ratio is not meaningful b) The following table summarizes deferred policy acquisition costs, unearned premiums and unpaid losses and loss adjustment expenses. (dollars in thousands) Deferred Policy Acquisition Costs Unearned Premiums Unpaid Losses and Loss Adjustment Expenses December 31, 2018 Insurance segment $ 315,363 $ 2,031,140 $ 7,947,772 Reinsurance segment 159,150 630,435 3,425,751 Other — — 386,329 Total Underwriting 474,513 2,661,575 11,759,852 Program services — 949,453 2,516,627 Total $ 474,513 $ 3,611,028 $ 14,276,479 December 31, 2017 Insurance segment $ 286,780 $ 1,855,331 $ 7,711,510 Reinsurance segment 178,789 690,565 3,248,070 Other — — 429,270 Total Underwriting 465,569 2,545,896 11,388,850 Program services — 762,883 2,195,431 Total $ 465,569 $ 3,308,779 $ 13,584,281 c) The following table summarizes earned premiums by major product grouping. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Insurance segment: General liability $ 889,543 $ 764,956 $ 675,199 Professional liability 701,867 628,878 600,607 Property 369,116 365,513 357,320 Marine and energy 376,747 312,282 277,608 Personal lines 374,543 382,761 374,175 Programs 288,398 273,954 263,783 Workers compensation 329,690 319,679 301,126 Other products 454,035 266,010 179,026 Total Insurance 3,783,939 3,314,033 3,028,844 Reinsurance segment: Property 233,195 321,178 288,771 Casualty 417,601 351,457 327,383 Auto 12,422 28,700 65,363 Other products 265,356 232,779 154,747 Total Reinsurance 928,574 934,114 836,264 Other (453 ) (169 ) 762 Total earned premiums $ 4,712,060 $ 4,247,978 $ 3,865,870 The Company does not manage products at this level of aggregation. The Company offers a diverse portfolio of products and manages these products in logical groupings within each operating segment. d) The following table summarizes the Company's gross written premiums by country. Gross written premiums are attributed to individual countries based upon location of risk or cedent. Years Ended December 31, (dollars in thousands) 2018 % of Total 2017 % of Total 2016 % of Total United States $ 4,587,486 79 % $ 4,163,753 79 % $ 3,691,840 77 % United Kingdom 471,818 8 374,941 7 358,348 7 Canada 127,546 2 132,018 3 125,444 3 Other countries 612,146 11 582,395 11 621,013 13 Total Underwriting 5,798,996 100 % 5,253,107 100 % 4,796,645 100 % United States - Program services 2,065,473 253,853 — Total $ 7,864,469 $ 5,506,960 $ 4,796,645 Most of the Company's gross written premiums are placed through insurance and reinsurance brokers. During the years ended December 31, 2018 , 2017 and 2016 , the top three independent brokers accounted for 25% , 27% and 28% of gross premiums written in the Company's underwriting segments. During the years ended December 31, 2018 , 2017 and 2016 , the top three independent brokers accounted for 13% , 14% and 15% , respectively, of gross premiums written in the Insurance segment and 76% , 78% and 75% , respectively, of gross premiums written in the Reinsurance segment. e) During the years ended December 31, 2018 , 2017 and 2016 , Markel Ventures segment revenues attributable to U.S. operations were 88% , 85% , and 84% , respectively, of total Markel Ventures segment revenues. f) The following table reconciles segment assets to the Company's consolidated balance sheets. December 31, (dollars in thousands) 2018 2017 2016 Segment assets: Investing $ 19,100,790 $ 20,317,160 $ 19,029,584 Underwriting 6,451,984 6,828,048 5,397,696 Markel Ventures 2,124,506 1,900,728 1,206,223 Total segment assets 27,677,280 29,045,936 25,633,503 Other operations 5,628,983 3,759,080 241,796 Total assets $ 33,306,263 $ 32,805,016 $ 25,875,299 |
Products, Services and Other Re
Products, Services and Other Revenues | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Other Revenues | Products, Services and Other Revenues The amount of revenues from contracts with customers for the years ended December 31, 2018 , 2017 and 2016 was $1.9 billion , $1.3 billion and $1.2 billion , respectively. The following table disaggregates revenues from contracts with customers by type, all of which are included in products revenues and services and other revenues on the consolidated statements of income (loss) and comprehensive income (loss). Years Ended December 31, 2018 2017 2016 (dollars in thousands) Markel Ventures Other Total Markel Ventures Other Total Markel Ventures Other Total Products $ 1,452,332 $ — $ 1,452,332 $ 902,739 $ — $ 902,739 $ 843,140 $ — $ 843,140 Services 367,572 33,236 400,808 339,430 34,746 374,176 288,726 34,984 323,710 Investment management — 91,527 91,527 — 28,740 28,740 — 56,455 56,455 Total revenues from contracts with customers 1,819,904 124,763 1,944,667 1,242,169 63,486 1,305,655 1,131,866 91,439 1,223,305 Program services — 94,118 94,118 — 14,487 14,487 — — — Other 92,161 1,660 93,821 91,111 2,022 93,133 82,583 1,891 84,474 Total $ 1,912,065 $ 220,541 $ 2,132,606 $ 1,333,280 $ 79,995 $ 1,413,275 $ 1,214,449 $ 93,330 $ 1,307,779 The following table presents receivables and customer deposits related to our contracts with customers. (dollars in thousands) December 31, 2018 December 31, 2017 Receivables $ 247,532 $ 176,865 Customer deposits $ 48,238 $ 61,546 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans a) The Company maintains defined contribution plans for employees of its U.S. insurance operations in accordance with Section 401(k) of the U.S. Internal Revenue Code of 1986. Employees of the Company's Markel Ventures subsidiaries are provided post-retirement benefits under separate plans. The Company also provides various defined contribution plans for employees of its international insurance and other operations, which are in line with local market terms and conditions of employment. Expenses relating to the Company's defined contribution plans were $41.8 million , $36.7 million and $30.1 million in 2018 , 2017 and 2016 , respectively. b) The Terra Nova Pension Plan is a defined benefit plan which covers certain employees in the Company's international insurance operations who meet the eligibility conditions set out in the plan. The plan has been closed to new participants since 2001. The cost of providing pensions for employees is charged to earnings over the average working life of employees according to actuarial recommendations. Final benefits are based on the employee's years of credited service and the higher of pensionable compensation received in the calendar year preceding retirement or the best average pensionable compensation received in any three consecutive years in the ten years preceding retirement. Employees have not accrued benefits for future service in the Terra Nova Pension Plan since April 2012. The Company uses December 31 as the measurement date for the Terra Nova Pension Plan. The following table summarizes the funded status of the Terra Nova Pension Plan and the amounts recognized on the accompanying consolidated balance sheets of the Company. Years Ended December 31, (dollars in thousands) 2018 2017 Change in projected benefit obligation: Projected benefit obligation at beginning of period $ 199,117 $ 178,618 Interest cost 4,815 5,016 Benefits paid (8,045 ) (5,644 ) Actuarial gain (loss) (15,853 ) 4,985 Effect of foreign currency rate changes (8,537 ) 16,142 Projected benefit obligation at end of year $ 171,497 $ 199,117 Change in plan assets: Fair value of plan assets at beginning of period $ 206,570 $ 175,644 Actual gain (loss) on plan assets (5,683 ) 16,902 Employer contributions 3,368 3,393 Benefits paid (8,045 ) (5,644 ) Effect of foreign currency rate changes (9,246 ) 16,275 Fair value of plan assets at end of year $ 186,964 $ 206,570 Funded status of the plan $ 15,467 $ 7,453 Net actuarial pension loss $ 74,604 $ 77,567 Net actuarial pension loss is recognized as a component of accumulated other comprehensive income, net of taxes. The asset for pension benefits, also referred to as the funded status of the plan, at December 31, 2018 and 2017 was included in other assets on the consolidated balance sheets. The following table presents the changes in plan assets and projected benefit obligation recognized in accumulated other comprehensive income. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Net actuarial gain (loss) $ — $ 3,728 $ (25,243 ) Amortization of net actuarial loss 2,963 3,815 1,951 Tax benefit (expense) (622 ) (1,284 ) 4,192 Total other comprehensive income (loss) $ 2,341 $ 6,259 $ (19,100 ) The following table summarizes the components of net periodic benefit income (loss) and the weighted average assumptions for the Terra Nova Pension Plan. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Components of net periodic benefit income (loss): Interest cost $ 4,815 $ 5,016 $ 6,113 Expected return on plan assets (8,782 ) (8,189 ) (9,124 ) Amortization of net actuarial pension loss 2,963 3,815 1,951 Net periodic benefit income (loss) $ (1,004 ) $ 642 $ (1,060 ) Weighted average assumptions as of December 31: Discount rate 3.0 % 2.6 % 2.7 % Expected return on plan assets 4.5 % 4.5 % 4.5 % Rate of compensation increase 3.0 % 3.0 % 3.0 % The projected benefit obligation and the net periodic benefit income (loss) are determined by independent actuaries using assumptions provided by the Company. In determining the discount rate, the Company uses the current yield on high-quality, fixed maturity investments that have maturities corresponding to the anticipated timing of estimated defined benefit payments. The expected return on plan assets is estimated based upon the anticipated average yield on plan assets using asset return assumptions for each asset class, and the cross-correlations between the asset classes, over a specified projection horizon. The rate of compensation increase is based upon historical experience and management's expectation of future compensation. Management's discount rate and rate of compensation increase assumptions at December 31, 2018 were used to calculate the Company's projected benefit obligation. Management's discount rate, expected return on plan assets and rate of compensation increase assumptions at December 31, 2017 were used to calculate the net periodic benefit income for 2018 . The Company estimates that net periodic benefit cost in 2019 will include an expense of $2.7 million resulting from the amortization of the net actuarial pension loss included as a component of accumulated other comprehensive loss at December 31, 2018 . The fair values of each of the plan's assets are measured using quoted prices in active markets for identical assets, which represent Level 1 inputs within the fair value hierarchy established in ASC 820. The following table summarizes the fair value of plan assets as of December 31, 2018 and 2017 . December 31, (dollars in thousands) 2018 2017 Plan assets: Fixed maturity index funds $ 102,047 $ 110,936 Equity security index funds 84,909 95,452 Cash and cash equivalents 8 182 Total $ 186,964 $ 206,570 The Company's target asset allocation for the plan is 47% equity securities and 53% fixed maturities. At December 31, 2018 , the actual allocation of assets in the plan was 45% equity securities and 55% fixed maturities. At December 31, 2017 , the actual allocation of assets in the plan was 46% equity securities and 54% fixed maturities. Investments are managed by a third party inve stment manager. Equity securities are invested in an index fu nd where 30% i s indexed to U.K. equities an d 70% is indexed to other markets. Assets are also invested in a mutual fund with a diversified global portfolio of equities, investment grade debt, property and cash. The primary objective of investing in these funds is to earn rates of return that are consistently in excess of inflation. Investing in equity securities, historically, has provided rates of return that are higher than investments in fixed maturities. Fixed maturity investments are allocated between five mutual funds; two index funds that include U.K. government securities, one index fund that includes securities issued by other foreign governments, one mutual fund that includes investment grade corporate bonds from the U.K. and foreign markets and one index fund that includes U.K. corporate securities. The assets in these funds are invested to meet the Company's obligations for current pensioners and those individuals nearing retirement. The plan does not invest in the Company's common shares. At December 31, 2018 and 2017 , the fair value of plan assets exceeded the plan's accumulated benefit obligation of $168.1 million and $195.1 million , respectively. The Company expects to make plan contributions of $3.4 million in 2019 . The benefits expected to be paid in each year from 2019 to 2023 are $3.8 million , $3.8 million , $3.9 million , $4.0 million and $4.1 million , respectively. The aggregate benefits expected to be paid in the five years from 2024 to 2028 are $22.0 million . The expected benefits to be paid are based on the same assumptions used to measure the Company's projected benefit obligation at December 31, 2018 . |
Markel Corporation (Parent Comp
Markel Corporation (Parent Company Only) Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Markel Corporation (Parent Company Only) Financial Information | Markel Corporation (Parent Company Only) Financial Information The following parent company only condensed financial information reflects the financial position, results of operations and cash flows of Markel Corporation. CONDENSED BALANCE SHEETS December 31, 2018 2017 (dollars in thousands) ASSETS Investments, at estimated fair value: Fixed maturities, available-for-sale (amortized cost of $717,666 in 2018 and $533,183 in 2017) $ 717,681 $ 532,438 Equity securities, available-for-sale (cost of $402,694 in 2017) — 646,060 Equity securities (cost of $1,117,363 in 2018) (1) 1,175,120 — Short-term investments, available-for-sale (estimated fair value approximates cost) 451,499 1,159,323 Total Investments 2,344,300 2,337,821 Cash and cash equivalents 263,043 349,347 Restricted cash and cash equivalents 3,177 1,419 Receivables 19,295 18,684 Investments in consolidated subsidiaries 10,697,605 9,510,215 Notes receivable from subsidiaries 160,111 140,110 Income taxes receivable 21,174 5,704 Other assets 135,722 121,233 Total Assets $ 13,644,427 $ 12,484,533 LIABILITIES AND SHAREHOLDERS' EQUITY Senior long-term debt $ 2,539,389 $ 2,537,331 Notes payable to subsidiaries (2) 1,895,000 285,000 Net deferred tax liability 64,564 84,507 Other liabilities 64,820 73,547 Total Liabilities 4,563,773 2,980,385 Total Shareholders' Equity 9,080,654 9,504,148 Total Liabilities and Shareholders' Equity $ 13,644,427 $ 12,484,533 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. (2) In December 2018, Markel Corporation purchased Markel Global Reinsurance Company, an indirectly owned subsidiary of Markel Corporation, from Alterra USA Holdings Limited, another indirectly owned subsidiary of Markel Corporation, by issuing a $1.4 billion note payable to subsidiary. CONDENSED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) Years Ended December 31, 2018 2017 2016 (dollars in thousands) REVENUES Net investment income $ 32,631 $ 21,076 $ 9,561 Dividends on common stock of consolidated subsidiaries 749,171 895,920 349,622 Net investment gains (losses): Net realized investment gains (losses), including other-than-temporary impairment losses (3,341 ) 3,383 1,068 Change in fair value of equity securities (1) (110,356 ) — — Net investment gains (losses) (113,697 ) 3,383 1,068 Total Revenues 668,105 920,379 360,251 EXPENSES Services and other expenses 6,532 11,708 13,076 Interest expense 145,681 122,151 116,013 Net foreign exchange gains (3,391 ) — — Loss on early extinguishment of debt — — 44,100 Total Expenses 148,822 133,859 173,189 Income Before Equity in Undistributed Earnings of Consolidated Subsidiaries and Income Taxes 519,283 786,520 187,062 Equity in undistributed earnings of consolidated subsidiaries (696,045 ) (469,365 ) 196,615 Income tax benefit (48,582 ) (78,114 ) (72,012 ) Net Income (Loss) to Shareholders $ (128,180 ) $ 395,269 $ 455,689 OTHER COMPREHENSIVE INCOME (LOSS) TO SHAREHOLDERS Change in net unrealized gains on available-for-sale investments, net of taxes: Net holding gains (losses) arising during the period $ (1,492 ) $ 52,277 $ 37,045 Consolidated subsidiaries' net holding gains (losses) arising during the period (239,833 ) 735,062 238,616 Reclassification adjustments for net gains (losses) included in net income (loss) to shareholders 2,564 (1,513 ) (523 ) Consolidated subsidiaries' reclassification adjustments for net gains included in net income (loss) to shareholders 5,285 (22,783 ) (32,970 ) Change in net unrealized gains on available-for-sale investments, net of taxes (233,476 ) 763,043 242,168 Change in foreign currency translation adjustments, net of taxes — (2,260 ) (1,326 ) Consolidated subsidiaries' change in foreign currency translation adjustments, net of taxes (16,455 ) 12,663 (10,384 ) Consolidated subsidiaries' change in net actuarial pension loss, net of taxes 2,341 6,259 (19,100 ) Total Other Comprehensive Income (Loss) to Shareholders (247,590 ) 779,705 211,358 Comprehensive Income (Loss) to Shareholders $ (375,770 ) $ 1,174,974 $ 667,047 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2018 2017 2016 (dollars in thousands) OPERATING ACTIVITIES Net income (loss) to shareholders $ (128,180 ) $ 395,269 $ 455,689 Adjustments to reconcile net income (loss) to shareholders to net cash provided (used) by operating activities 3,637 (166,132 ) (120,564 ) Net Cash Provided (Used) By Operating Activities (124,543 ) 229,137 335,125 INVESTING ACTIVITIES Proceeds from sales of fixed maturities and equity securities 204,478 20,562 1,831 Proceeds from maturities, calls and prepayments of fixed maturities 34,560 64,705 11,960 Cost of fixed maturities and equity securities purchased (26,336 ) (72,910 ) (29,110 ) Net change in short-term investments 930,876 649,181 (731,389 ) Return of capital from subsidiaries 12,712 45,225 21,021 Decrease (increase) in notes receivable due from subsidiaries (20,000 ) (58 ) 92,530 Capital contributions to subsidiaries (103,133 ) (270,623 ) — Acquisitions, net of cash acquired (972,619 ) (1,153,683 ) — Cost of equity method investments (5,117 ) (10,633 ) (3,100 ) Additions to property and equipment (3,191 ) — (584 ) Other (5,261 ) 6,972 (3,207 ) Net Cash Provided (Used) By Investing Activities 46,969 (721,262 ) (640,048 ) FINANCING ACTIVITIES Additions to senior long-term debt — 592,923 493,149 Increase in notes payable to subsidiaries 47,105 — — Repayment and retirement of senior long-term debt — — (183,343 ) Premiums and fees related to early extinguishment of debt — — (43,691 ) Repurchases of common stock (54,007 ) (110,838 ) (51,142 ) Other (70 ) (9,848 ) (337 ) Net Cash Provided (Used) By Financing Activities (6,972 ) 472,237 214,636 Decrease in cash, cash equivalents, restricted cash and restricted cash equivalents (84,546 ) (19,888 ) (90,287 ) Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year 350,766 370,654 460,941 CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS AT END OF YEAR $ 266,220 $ 350,766 $ 370,654 |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarterly Financial Information (unaudited) The following table presents the unaudited quarterly results of consolidated operations for 2018 , 2017 and 2016 . Quarters Ended (dollars in thousands, except per share amounts) Mar. 31 June 30 Sept. 30 Dec. 31 2018 Operating revenues $ 1,575,471 $ 1,987,013 $ 2,235,949 $ 1,042,852 Net income (loss) (1) (65,594 ) 279,587 409,028 (753,374 ) Net income (loss) to shareholders (1) (64,306 ) 278,231 409,438 (751,543 ) Comprehensive income (loss) to shareholders (174,839 ) 164,336 315,106 (680,373 ) Net income (loss) per share: Basic $ (4.25 ) $ 20.01 $ 28.56 $ (53.88 ) Diluted (4.25 ) 19.97 28.50 (53.88 ) 2017 Operating revenues $ 1,411,751 $ 1,481,493 $ 1,506,148 $ 1,662,267 Net income (loss) (1) 71,040 151,427 (261,035 ) 439,326 Net income (loss) to shareholders (1) 69,869 149,660 (259,141 ) 434,881 Comprehensive income (loss) to shareholders 223,239 342,357 (19,869 ) 629,247 Net income (loss) per share: Basic $ 3.91 $ 10.34 $ (18.82 ) $ 30.48 Diluted 3.90 10.31 (18.82 ) 30.39 2016 Operating revenues $ 1,376,182 $ 1,375,937 $ 1,431,282 $ 1,428,625 Net income (1) 163,646 80,673 83,421 132,703 Net income to shareholders (1) 160,370 78,797 83,796 132,726 Comprehensive income (loss) to shareholders 396,994 209,942 89,161 (29,050 ) Net income per share: Basic $ 11.21 $ 5.44 $ 5.62 $ 9.14 Diluted 11.15 5.41 5.60 9.11 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The accompanying consolidated financial statements have been prepared in accordance with United States (U.S.) generally accepted accounting principles (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, with the exception of significant transactions or events that occur during the intervening period. Certain prior year amounts have been reclassified to conform to the current presentation. |
Use of Estimates | Use of Estimates. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Management periodically reviews its estimates and assumptions. Quarterly reviews include evaluating the adequacy of reserves for unpaid losses and loss adjustment expenses, life and annuity reinsurance benefit reserves and litigation contingencies. Estimates and assumptions for goodwill and intangible assets are reviewed in conjunction with an acquisition, and goodwill and indefinite-lived intangible assets are reassessed at least annually for impairment. Actual results may differ materially from the estimates and assumptions used in preparing the consolidated financial statements. |
Investments | Investments. Available-for-sale investments and equity securities are recorded at estimated fair value. Unrealized gains and losses on available-for-sale investments, net of income taxes, are included in accumulated other comprehensive income in shareholders' equity. The Company completes a detailed analysis each quarter to assess whether the decline in the fair value of any available-for-sale investment below its cost basis is deemed other-than-temporary. Premiums and discounts are amortized or accreted over the lives of the related fixed maturities as an adjustment to the yield using the effective interest method. Dividend and interest income are recognized when earned. Realized investment gains or losses are included in earnings. Realized gains or losses from sales of available-for-sale investments are derived using the first-in, first-out method on the trade date. Effective January 1, 2018, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities . Upon adoption of the ASU, equity securities are no longer classified as available-for-sale and unrealized gains and losses on equity securities, net of income taxes, are included in earnings. In accordance with the provisions of the ASU, prior periods have not been restated to conform to the new presentation. See note 1(w) for further discussion of the impact of prospectively adopting this standard. Investments accounted for under the equity method of accounting are recorded at cost within other assets on the consolidated balance sheets and subsequently increased or decreased by the Company's proportionate share of the net income or loss of the investee. The Company records its proportionate share of net income or loss of the investee in net investment income. The Company records its proportionate share of other comprehensive income or loss of the investee as a component of other comprehensive income. Dividends or other equity distributions in excess of the Company's cumulative equity in earnings of the investee are recorded as a reduction of the investment. The Company reviews equity method investments for impairment when events or circumstances indicate that a decline in the fair value of the investment below its carrying value is other-than-temporary. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company considers all investments with original maturities of 90 days or less to be cash equivalents. The carrying value of the Company's cash and cash equivalents approximates fair value. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents. Cash and cash equivalents that are restricted as to withdrawal or use are recorded as restricted cash and cash equivalents. The carrying value of the Company’s restricted cash and cash equivalents approximates fair value. |
Receivables | Receivables. Receivables include amounts receivable from agents, brokers and insureds, which represent premiums that are both currently due and amounts not yet due on insurance and reinsurance policies. Premiums for insurance policies are generally due at inception. Premiums for reinsurance policies generally become due over the period of coverage based on the policy terms. The Company monitors the credit risk associated with premiums receivable, taking into consideration the fact that in certain instances credit risk may be reduced by the Company's right to offset loss obligations or unearned premiums against premiums receivable. Amounts deemed uncollectible are charged to net income in the period they are determined. Changes in the estimate of reinsurance premiums written will result in an adjustment to premiums receivable in the period they are determined. Receivables also include amounts receivable from contracts with customers, which represent the Company’s unconditional right to consideration for satisfying the performance obligations outlined in the contract. |
Reinsurance Recoverables | Reinsurance Recoverables. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured business. Allowances are established for amounts deemed uncollectible and reinsurance recoverables are recorded net of these allowances. The Company evaluates the financial condition of its reinsurers and monitors concentration risk to minimize its exposure to significant losses from individual reinsurers. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs. Costs directly related to the acquisition of insurance premiums are deferred and amortized over the related policy period, generally one year . The Company only defers acquisition costs incurred that are related directly to the successful acquisition of new or renewal insurance contracts, including commissions to agents and brokers and premium taxes. Commissions received related to reinsurance premiums ceded are netted against broker commissions in determining acquisition costs eligible for deferral. To the extent that future policy revenues on existing policies are not adequate to cover related costs and expenses, deferred policy acquisition costs are charged to earnings. The Company does not consider anticipated investment income in determining whether a premium deficiency exists. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets. Goodwill and intangible assets are recorded as a result of business acquisitions. Goodwill represents the excess of the amount paid to acquire a business over the net fair value of assets acquired and liabilities assumed at the date of acquisition. Indefinite-lived and other intangible assets are recorded at fair value as of the acquisition date. The determination of the fair value of certain assets acquired and liabilities assumed involves significant judgment and the use of valuation models and other estimates, which require assumptions that are inherently subjective. Goodwill and indefinite-lived intangible assets are tested for impairment at least annually. The Company completes an annual test during the fourth quarter of each year based upon the results of operations through September 30. Intangible assets with definite lives are amortized using the straight-line method over their estimated useful lives, generally five to 20 years , and are reviewed for impairment when events or circumstances indicate that their carrying value may not be recoverable. |
Property and Equipment | Property and Equipment. Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment are calculated using the straight-line method over the estimated useful lives (generally, the lower of the life of the lease or the estimated useful life for leasehold improvements, ten to 40 years for buildings, seven to 40 years for land improvements, three to ten years for furniture and equipment and three to 25 years for other property and equipment). |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests. The Company owns controlling interests in various companies through its Markel Ventures operations. In some cases, the Company has the option to acquire the remaining equity interests, and the remaining equity interests have the option to sell their interests to the Company, in the future. The redemption value of the remaining equity interests is generally based on the respective company's earnings in specified periods preceding the redemption date. The redeemable noncontrolling interests generally become redeemable through 2023. The Company recognizes changes in the redemption value that exceed the carrying value of redeemable noncontrolling interests to retained earnings as if the balance sheet date were also the redemption date. Changes in the redemption value also result in an adjustment to net income to shareholders in the calculation of basic and diluted net income per share. |
Income Taxes | Income Taxes. The Company records deferred income taxes to reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when management believes it is more likely than not that some, or all, of the deferred tax assets will not be realized. The Company recognizes the tax benefit from an uncertain tax position taken or expected to be taken in income tax returns only if it is more likely than not that the tax position will be sustained upon examination by tax authorities, based on the technical merits of the position. Tax positions that meet the more likely than not threshold are then measured using a probability weighted approach, whereby the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement is recognized. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. |
Unpaid Losses and Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses. Unpaid losses and loss adjustment expenses on the Company's property and casualty insurance business are based on evaluations of reported claims and estimates for losses and loss adjustment expenses incurred but not reported. Estimates for losses and loss adjustment expenses incurred but not reported are based on reserve development studies, among other things. Recorded reserves are estimates, and the ultimate liability may be greater or less than the estimates. |
Life and Annuity Benefits | Life and Annuity Benefits. The Company has a run-off block of life and annuity reinsurance contracts that subject the Company to mortality, longevity and morbidity risks. The assumptions used to determine policy benefit reserves are generally locked-in for the life of the contract unless an unlocking event occurs. To the extent existing policy reserves, together with the present value of future gross premiums and expected investment income earned thereon, are not adequate to cover the present value of future benefits, settlement and maintenance costs, the locked-in assumptions are revised to current best estimate assumptions and a charge to earnings for life and annuity benefits is recognized at that time. Because of the assumptions and estimates used in establishing reserves for life and annuity benefit obligations and the long-term nature of these reinsurance contracts, the ultimate liability may be greater or less than the estimates. Results attributable to the run-off of life and annuity reinsurance business are included in services and other revenues and services and other expenses in the Company's consolidated statements of income and comprehensive income. |
Revenue Recognition | Revenue Recognition. Property and Casualty Premiums Insurance premiums written are generally recorded at the inception of a policy and earned on a pro rata basis over the policy period, typically one year . The cost of reinsurance ceded is initially recorded as prepaid reinsurance premiums and is amortized over the reinsurance contract period in proportion to the amount of insurance protection provided. Premiums ceded are netted against premiums written. For multi-year contracts where insurance premiums are payable in annual installments, written premiums are recorded at the inception of the contract based on management’s best estimate of total premiums to be received. For contracts where the cedent has the ability to unilaterally commute or cancel coverage within the term of the policy, premiums are generally recorded on an annual basis or up to the contract cancellation point. The remaining premiums are estimated and included as written at each successive anniversary date within the multi-year term. Assumed reinsurance premiums are recorded at the inception of each contract based upon contract terms and information received from cedents and brokers and are earned on a pro rata basis over the coverage period, or for multi-year contracts, in proportion with the underlying risk exposure to the extent there is variability in the exposure through the coverage period. Changes in reinsurance premium estimates are expected and may result in significant adjustments in any period. These estimates change over time as additional information regarding changes in underlying exposures is obtained. Any subsequent differences arising on such estimates are recorded as premiums written in the period they are determined and are earned on a pro rata basis over the coverage period. The Company uses the periodic method to account for assumed reinsurance from foreign reinsurers. The Company's foreign reinsurers provide sufficient information to record foreign assumed business in the same manner as the Company records assumed business from U.S. reinsurers. Certain contracts that the Company writes provide for reinstatement of coverage. Reinstatement premiums are the premiums for the restoration of the insurance or reinsurance limit of a contract to its full amount after a loss occurrence by the insured or reinsured. The Company accrues for reinstatement premiums resulting from losses recorded. Such accruals are based upon contractual terms and management judgment is involved with respect to the amount of losses recorded. Changes in estimates of losses recorded on contracts with reinstatement premium features will result in changes in reinstatement premiums based on contractual terms. Reinstatement premiums are recognized at the time losses are recorded and are generally earned on a pro rata basis over the coverage period. Products, Services and Other Revenues Effective January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , and related amendments, which created a new comprehensive revenue recognition standard, FASB Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers , that serves as a single source of revenue guidance for all contracts with customers to transfer goods or services or contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards, such as insurance contracts. ASC 606 is not applicable to the Company's insurance premium revenues or revenues from its investment portfolio but is applicable to most of the Company's other revenues, as described below. See note 1(w) for further discussion of the impact of adopting this standard. Other revenues primarily relate to the Company's Markel Ventures operations and consist of revenues from the sale of products and services. Revenues are recognized when, or as, control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. All contracts with customers either have an original expected length of one year or less or the Company recognizes revenue at the amount for which it has a right to invoice for the products delivered or services performed. Certain customers may receive volume rebates or credits for products and services, which are accounted for as variable consideration. The Company estimates these amounts based on the expected amount to be provided to the customer and reduces revenues recognized by a corresponding amount. The Company does not expect significant changes to its estimates of variable consideration over the term of the contracts. Payment terms for products and services vary by the type of product or service offered and the location of the customer, and payment is typically received at or shortly after the point of sale. For certain products, the Company requires partial payment in the form of a deposit before the products are delivered to the customer, which is included in other liabilities on the Company's consolidated balance sheet. Products revenues are primarily generated from the sale of equipment used in baking systems, portable dredges, over-the-road transportation equipment, flooring for the trucking industry, ornamental plants and residential homes. Most of the Company's product revenues are recognized when the products are shipped to the customer or the products arrive at the agreed upon destination with the end customer. Some of the Company's contracts include multiple performance obligations. For such arrangements, revenues are allocated to each performance obligation based on the relative standalone selling price, which is derived from amounts stated in the contract. Services revenues are primarily generated by delivering healthcare services, retail intelligence, consulting services and investment management services. Service revenues are generally recognized over the term of the contracts based on hours incurred or as services are provided. Investment management fee income is recognized over the period in which investment management services are provided and is calculated and recognized monthly based on the net asset value of the accounts managed. For certain accounts, the Company is also entitled to participate, on a fixed-percentage basis, in any net income generated in excess of an agreed-upon threshold as established by the underlying investment management agreements. In general, net income is calculated at the end of each calendar year and incentive fees are payable annually. Incentive fee income is recognized at the conclusion of the contractual performance period, when the uncertainty related to performance has been resolved. Program services fees received in exchange for providing access to the U.S. property and casualty insurance market are based on the gross premiums written on behalf of general agent and capacity provider clients. Program services fees are earned in a manner consistent with the recognition of the gross premiums earned on the underlying insurance policies, generally on a pro rata basis over the terms of the underlying policies reinsured. |
Revenue from Contract with Customer [Policy Text Block] | Products, Services and Other Revenues Effective January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , and related amendments, which created a new comprehensive revenue recognition standard, FASB Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers , that serves as a single source of revenue guidance for all contracts with customers to transfer goods or services or contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards, such as insurance contracts. ASC 606 is not applicable to the Company's insurance premium revenues or revenues from its investment portfolio but is applicable to most of the Company's other revenues, as described below. See note 1(w) for further discussion of the impact of adopting this standard. Other revenues primarily relate to the Company's Markel Ventures operations and consist of revenues from the sale of products and services. Revenues are recognized when, or as, control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. All contracts with customers either have an original expected length of one year or less or the Company recognizes revenue at the amount for which it has a right to invoice for the products delivered or services performed. Certain customers may receive volume rebates or credits for products and services, which are accounted for as variable consideration. The Company estimates these amounts based on the expected amount to be provided to the customer and reduces revenues recognized by a corresponding amount. The Company does not expect significant changes to its estimates of variable consideration over the term of the contracts. Payment terms for products and services vary by the type of product or service offered and the location of the customer, and payment is typically received at or shortly after the point of sale. For certain products, the Company requires partial payment in the form of a deposit before the products are delivered to the customer, which is included in other liabilities on the Company's consolidated balance sheet. Products revenues are primarily generated from the sale of equipment used in baking systems, portable dredges, over-the-road transportation equipment, flooring for the trucking industry, ornamental plants and residential homes. Most of the Company's product revenues are recognized when the products are shipped to the customer or the products arrive at the agreed upon destination with the end customer. Some of the Company's contracts include multiple performance obligations. For such arrangements, revenues are allocated to each performance obligation based on the relative standalone selling price, which is derived from amounts stated in the contract. Services revenues are primarily generated by delivering healthcare services, retail intelligence, consulting services and investment management services. Service revenues are generally recognized over the term of the contracts based on hours incurred or as services are provided. Investment management fee income is recognized over the period in which investment management services are provided and is calculated and recognized monthly based on the net asset value of the accounts managed. For certain accounts, the Company is also entitled to participate, on a fixed-percentage basis, in any net income generated in excess of an agreed-upon threshold as established by the underlying investment management agreements. In general, net income is calculated at the end of each calendar year and incentive fees are payable annually. Incentive fee income is recognized at the conclusion of the contractual performance period, when the uncertainty related to performance has been resolved. Program services fees received in exchange for providing access to the U.S. property and casualty insurance market are based on the gross premiums written on behalf of general agent and capacity provider clients. Program services fees are earned in a manner consistent with the recognition of the gross premiums earned on the underlying insurance policies, generally on a pro rata basis over the terms of the underlying policies reinsured. |
Program Services | Program Services. In connection with its program services business, the Company enters into contractual agreements with both producing general agents and reinsurers, whereby the general agents and reinsurers are typically obligated to each other for payment of insurance amounts, including premiums, commissions and losses. To the extent these funds are not the obligation of the Company and are settled directly between the general agent and the reinsurer, no receivables or payables are recorded for these amounts. All obligations of the Company's insurance subsidiaries owed to or on behalf of their policyholders are recorded by the Company and, to the extent appropriate, offsetting reinsurance recoverables are recorded. |
Stock-based Compensation | Stock-based Compensation. Stock-based compensation expense is generally recognized as part of underwriting, acquisition and insurance expenses over the requisite service period. Stock-based compensation expense, net of taxes, was $13.0 million i n 2018 , $11.9 million in 2017 and $14.3 million in 2016 . See note 12 . |
Foreign Currency Translation | Foreign Currency Transactions. The U.S. Dollar is the Company’s reporting currency and the primary functional currency of its foreign underwriting operations. The functional currencies of the Company's other foreign operations are the currencies of the primary economic environments in which the majority of their business is transacted. Foreign currency transaction gains and losses are the result of exchange rate changes on transactions denominated in currencies other than the functional currency at each foreign entity. Monetary assets and liabilities are remeasured to the functional currency at current exchange rates, with resulting gains and losses included in net foreign exchange losses (gains) within net income. Non-monetary assets and liabilities are remeasured to the functional currency at historic exchange rates. Available-for-sale securities are recorded at fair value with resulting gains and losses, including the portion attributable to movements in exchange rates, included in the change in net unrealized gains on available-for-sale investments, net of taxes within other comprehensive income. While we attempt to naturally hedge our exposure to foreign currency fluctuations by matching assets and liabilities in the same currencies, there is a financial statement mismatch between the gains or losses recorded in net income related to insurance reserves denominated in non-functional currencies and the gains or losses recorded in other comprehensive income related to the available-for-sale securities held in non-functional currencies supporting the reserves. Assets and liabilities of foreign operations denominated in a functional currency other than the U.S. Dollar are translated into the U.S. Dollar at current exchange rates, with resulting gains or losses included, net of taxes, in the change in foreign currency translation adjustments within other comprehensive income. Historically, the Company also designated certain additional currencies, including the British Pound Sterling, the Euro, and the Canadian Dollar, as functional currencies within its foreign underwriting operations that were deemed to contain distinct and separable operations in those foreign economic environments. However, over time the Company’s foreign underwriting operations have evolved and are now managed on a global basis. Effective January 1, 2018, management reassessed its functional currency determination as required by ASC 830, Foreign Currency Matters , and concluded that its foreign underwriting operations have evolved to function as an extension, or integral component, of the Company’s global underwriting operations, and are no longer deemed to contain distinct and separable operations. As a result, more foreign currency denominated transactions are designated as non-functional, with related remeasurement gains and losses included in net income. The change in the Company’s functional currency determination has been applied on a prospective basis in accordance with ASC 830. Therefore, any translation gains and losses that were previously recorded in accumulated other comprehensive income through December 31, 2017 remain unchanged as of December 31, 2018. |
Derivative Financial Instruments | Derivative Financial Instruments. Derivative instruments, including derivative instruments resulting from hedging activities, are measured at fair value and recognized as either assets or liabilities on the consolidated balance sheets. The changes in fair value of derivatives are recognized in earnings. |
Comprehensive Income | Comprehensive Income. Comprehensive income represents all changes in equity that result from recognized transactions and other economic events during the period. Other comprehensive income refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive income but excluded from net income, such as unrealized gains or losses on available-for-sale investments, foreign currency translation adjustments and changes in net actuarial pension loss. |
Net Income Per Share | Net Income Per Share. Basic net income per share is computed by dividing adjusted net income to shareholders by the weighted average number of common shares outstanding during the year. Diluted net income per share is computed by dividing adjusted net income to shareholders by the weighted average number of common shares and dilutive potential common shares outstanding during the year. See note 12 (b). |
Variable Interest Entities | Variable Interest Entities. The Company determines whether it has relationships with entities defined as VIEs in accordance with ASC 810, Consolidation . Under this guidance, a VIE is consolidated by the variable interest holder that is determined to be the primary beneficiary. An entity in which the Company holds a variable interest is a VIE if any of the following conditions exist: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) as a group, the holders of equity investment at risk lack either the direct or indirect ability through voting rights or similar rights to make decisions about an entity's activities that most significantly impact the entity's economic performance or the obligation to absorb the expected losses or right to receive the expected residual returns, or (c) the voting rights of some investors are disproportionate to their obligation to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity's activities either involve or are conducted on behalf of an investor with disproportionately few voting rights. The primary beneficiary is defined as the variable interest holder that is determined to have the controlling financial interest as a result of having both (a) the power to direct the activities of a VIE that most significantly impact the economic performance of the VIE and (b) the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether an entity is a VIE at the inception of its variable interest in the entity and upon the occurrence of certain reconsideration events. The Company continually reassesses whether it is the primary beneficiary of VIEs in which it holds a variable interest. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. Effective January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and several other ASUs that were issued as amendments to ASU No. 2014-09, which apply to all contracts with customers to transfer goods or services or for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. ASU No. 2014-09's core principle is that a company recognizes 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 adopting this standard, the Company is required to use more judgment and make more estimates than under the previous guidance, including 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. The Company adopted ASU No. 2014-09 using the modified retrospective method. Prior periods were not restated and the cumulative-effect of applying the new standard to all open contracts at January 1, 2018 was $0.3 million , and is included as an adjustment to 2018 beginning retained earnings. The Company's other revenues for the year ended December 31, 2018 and its receivables, other assets and other liabilities as of December 31, 2018 were not materially different from the amounts that would have been recognized under the previous guidance. ASU No. 2014-09 also requires expanded revenue disclosures which are included in note 21. Effective January 1, 2018, the Company adopted ASU No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities . As a result of adoption of this ASU, equity instruments that do not result in consolidation and are not accounted for under the equity method are measured at fair value and any changes in fair value are recognized in net income. Previously, the Company’s equity securities were classified as available-for-sale and changes in fair value were recorded in other comprehensive income. Upon adoption of this ASU, cumulative net unrealized gains on equity securities of $2.6 billion , net of deferred income taxes of $684.4 million , were reclassified from accumulated other comprehensive income into retained earnings. Prior periods have not been restated to conform to the current presentation. See note 3(f) for details regarding the change in net unrealized gains on equity securities included in net income for the year ended December 31, 2018 and included in other comprehensive income for the years ended December 31, 2017 and 2016 . Effective January 1, 2018, the Company early adopted ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU provides an option to reclassify tax effects remaining in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (TCJA) to retained earnings. Upon enactment of the TCJA, the U.S. corporate tax rate was reduced from 35% to 21% and the Company's U.S. deferred tax balances were remeasured to the lower enacted U.S. corporate tax rate. U.S. GAAP requires the effects of changes in tax rates and laws on deferred tax balances to be recorded as a component of income tax expense in the period of enactment, even if the assets and liabilities relate to items of accumulated other comprehensive income. As a result of adopting the ASU, the Company reclassified $402.9 million of previously recognized deferred taxes from accumulated other comprehensive income into retained earnings as of January 1, 2018. The following ASUs relate to topics relevant to the Company's operations and were adopted effective January 1, 2018. These ASUs did not have a material impact on the Company’s financial position, results of operations or cash flows: • ASU No. 2016-16, Income Taxes (Topic 740): Intra-entity Transfers of Assets Other Than Inventory • ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost • ASU No. 2017-09, Stock Compensation (Topic 718): Scope of Modification Accounting 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 FASB subsequently issued ASUs with improvements to the guidance, including ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , which provides entities with an additional transition method to apply the new standard. Under the new optional transition method, an entity initially applies ASC 842 at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The ASUs become effective for the Company during the first quarter of 2019 and will be applied using a modified retrospective approach. The Company intends to elect the new transition method permitted by ASU No. 2018-11. Short-term leases will not be recorded on the balance sheet. The Company has elected the package of practical expedients permitted under the transition guidance within the new standard which, among other things, allows companies to carry forward their historical lease classification. The Company's future minimum lease payments for noncancelable operating leases, which represent minimum annual rental commitments excluding taxes, insurance and other operating costs, and which will be subject to this new guidance, totaled $305.9 million at December 31, 2018 . The Company is finalizing its evaluation of the impacts that the adoption of this accounting guidance will have on the consolidated financial statements. The Company estimates a right-of-use asset and a lease liability of approximately $250 million and $275 million , respectively, will be recognized in the consolidated balance sheet upon adoption. Adoption of this standard will not have a material impact on the Company’s results of operations and will not impact the Company's cash flows. 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 fixed maturities, 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 its consolidated financial statements. Application of the new expected loss model for measuring impairment losses will not impact the Company's investment portfolio, none of which is measured at amortized cost, 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 fixed maturities will be recorded as an allowance, subject to reversal, rather than as a reduction in amortized cost. In August 2018, the FASB issued ASU No. 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . The ASU requires insurance entities with long duration contracts to: (1) review and, if there is a change, update the assumptions used to measure cash flows at least annually, as well as update the discount rate assumption at each reporting date; (2) measure all market risk benefits associated with deposit (or account balance) contracts at fair value; and (3) disclose liability rollforwards and information about significant inputs, judgments, assumptions and methods used in measurement, including changes thereto and the effect of those changes on measurement. ASU No. 2018-12 becomes effective for the Company during the first quarter of 2021. The ASU will, among other things, impact the discount rate used in estimating reserves for the Company’s life and annuity reinsurance portfolio, which is in runoff. Currently, the discount rate assumption is locked-in for the life of the contracts, unless there is a loss recognition event. The Company is currently evaluating ASU No. 2018-12 to determine the impact that adopting this standard will have on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. The ASU requires an entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. Currently, such costs are generally expensed as incurred. ASU No. 2018-15 becomes effective for the Company during the first quarter of 2020 and may be applied on a prospective or retrospective basis. Early adoption is permitted. The Company is currently evaluating ASU No. 2018-15 to determine the impact that adopting this standard will have on its consolidated financial statements. The following ASUs are relevant to the Company's operations and are not yet effective. These ASUs are not expected to have a material impact on the Company's financial position, results of operations or cash flows: • ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities • ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement • ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans • ASU No. 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Summary Of Fair Value Of Assets Acquired And Liabilities Assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. (dollars in thousands) ASSETS Investments $ 395,940 Cash and cash equivalents 77,302 Restricted cash and cash equivalents 25,545 Receivables 147,256 Prepaid reinsurance premiums 808,331 Reinsurance recoverables 2,075,734 Other assets 83,721 LIABILITIES Unpaid losses and loss adjustment expenses 2,086,621 Unearned premiums 825,529 Payables to insurance and reinsurance companies 122,203 Senior long-term debt and other debt 44,500 Other liabilities 365,826 Net assets 169,150 Goodwill 379,150 Intangible assets 370,500 Acquisition date fair value $ 918,800 |
Summary Of Net Intangible Assets Acquired | The following table summarizes the intangible assets recorded in connection with the acquisition, and as of December 31, 2018 . (dollars in thousands) Amount Economic Useful Life Customer relationships $ 289,000 13 years Trade names 22,500 13 years Technology 27,000 Nine years Insurance licenses 32,000 Indefinite Intangible assets, before amortization, as of the Acquisition Date 370,500 Amortization (from the Acquisition Date through December 31, 2018) 32,336 Net intangible assets as of December 31, 2018 $ 338,164 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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. December 31, 2018 (dollars in thousands) Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Estimated Fair Value Fixed maturities: U.S. Treasury securities $ 248,286 $ 308 $ (1,952 ) $ 246,642 U.S. government-sponsored enterprises 357,765 5,671 (4,114 ) 359,322 Obligations of states, municipalities and political subdivisions 4,285,068 96,730 (28,868 ) 4,352,930 Foreign governments 1,482,826 98,356 (21,578 ) 1,559,604 Commercial mortgage-backed securities 1,691,572 3,154 (44,527 ) 1,650,199 Residential mortgage-backed securities 886,501 6,170 (12,499 ) 880,172 Asset-backed securities 19,614 7 (213 ) 19,408 Corporate bonds 979,141 13,234 (17,464 ) 974,911 Total fixed maturities 9,950,773 223,630 (131,215 ) 10,043,188 Short-term investments 1,080,027 443 (2,774 ) 1,077,696 Investments, available-for-sale $ 11,030,800 $ 224,073 $ (133,989 ) $ 11,120,884 December 31, 2017 (dollars in thousands) Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Estimated Fair Value Fixed maturities: U.S. Treasury securities $ 162,378 $ 54 $ (1,819 ) $ 160,613 U.S. government-sponsored enterprises 352,455 11,883 (818 ) 363,520 Obligations of states, municipalities and political subdivisions 4,381,358 193,120 (7,916 ) 4,566,562 Foreign governments 1,341,628 150,010 (2,410 ) 1,489,228 Commercial mortgage-backed securities 1,244,777 6,108 (16,559 ) 1,234,326 Residential mortgage-backed securities 846,916 14,115 (4,863 ) 856,168 Asset-backed securities 34,942 8 (222 ) 34,728 Corporate bonds 1,186,699 51,563 (2,737 ) 1,235,525 Total fixed maturities 9,551,153 426,861 (37,344 ) 9,940,670 Equity securities: (1) Insurance, banks and other financial institutions 899,324 1,209,162 (5,453 ) 2,103,033 Industrial, consumer and all other 1,768,337 2,110,959 (14,482 ) 3,864,814 Total equity securities 2,667,661 3,320,121 (19,935 ) 5,967,847 Short-term investments 2,161,017 26 (69 ) 2,160,974 Investments, available-for-sale $ 14,379,831 $ 3,747,008 $ (57,348 ) $ 18,069,491 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See note 1. |
Summary Of Gross Unrealized Investment Losses By Length Of Time That Securities Have Continuously Been In An Unrealized Loss Position | December 31, 2017 Less than 12 months 12 months or longer Total (dollars in thousands) Estimated Fair Value Gross Estimated Fair Value Gross Estimated Fair Value Gross Fixed maturities: U.S. Treasury securities $ 78,756 $ (659 ) $ 78,298 $ (1,160 ) $ 157,054 $ (1,819 ) U.S. government-sponsored enterprises 11,593 (79 ) 89,194 (739 ) 100,787 (818 ) Obligations of states, municipalities and political subdivisions 80,654 (789 ) 404,814 (7,127 ) 485,468 (7,916 ) Foreign governments 31,752 (452 ) 63,406 (1,958 ) 95,158 (2,410 ) Commercial mortgage-backed securities 253,936 (1,980 ) 481,216 (14,579 ) 735,152 (16,559 ) Residential mortgage-backed securities 157,508 (1,345 ) 148,960 (3,518 ) 306,468 (4,863 ) Asset-backed securities 14,263 (123 ) 15,165 (99 ) 29,428 (222 ) Corporate bonds 149,345 (863 ) 187,754 (1,874 ) 337,099 (2,737 ) Total fixed maturities 777,807 (6,290 ) 1,468,807 (31,054 ) 2,246,614 (37,344 ) Equity securities: (1) Insurance, banks and other financial institutions 60,848 (4,843 ) 1,291 (610 ) 62,139 (5,453 ) Industrial, consumer and all other 78,552 (11,798 ) 11,243 (2,684 ) 89,795 (14,482 ) Total equity securities 139,400 (16,641 ) 12,534 (3,294 ) 151,934 (19,935 ) Short-term investments 369,104 (69 ) — — 369,104 (69 ) Total $ 1,286,311 $ (23,000 ) $ 1,481,341 $ (34,348 ) $ 2,767,652 $ (57,348 ) (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See note 1. The following tables summarize gross unrealized investment losses on available-for-sale investments by the length of time that securities have continuously been in an unrealized loss position. December 31, 2018 Less than 12 months 12 months or longer Total (dollars in thousands) Estimated Fair Value Gross Estimated Fair Value Gross Estimated Fair Value Gross Losses Fixed maturities: U.S. Treasury securities $ 2,922 $ (83 ) $ 156,352 $ (1,869 ) $ 159,274 $ (1,952 ) U.S. government-sponsored enterprises 88,854 (1,923 ) 96,337 (2,191 ) 185,191 (4,114 ) Obligations of states, municipalities and political subdivisions 656,573 (12,455 ) 453,736 (16,413 ) 1,110,309 (28,868 ) Foreign governments 419,764 (14,461 ) 84,776 (7,117 ) 504,540 (21,578 ) Commercial mortgage-backed securities 653,410 (10,128 ) 709,971 (34,399 ) 1,363,381 (44,527 ) Residential mortgage-backed securities 276,777 (3,685 ) 242,949 (8,814 ) 519,726 (12,499 ) Asset-backed securities 1,645 (11 ) 17,030 (202 ) 18,675 (213 ) Corporate bonds 313,164 (10,965 ) 222,761 (6,499 ) 535,925 (17,464 ) Total fixed maturities 2,413,109 (53,711 ) 1,983,912 (77,504 ) 4,397,021 (131,215 ) Short-term investments 197,643 (2,774 ) — — 197,643 (2,774 ) Total $ 2,610,752 $ (56,485 ) $ 1,983,912 $ (77,504 ) $ 4,594,664 $ (133,989 ) |
Schedule Of Amortized Cost And Estimated Fair Value Of Fixed Maturities By Contractual Maturity | The amortized cost and estimated fair value of fixed maturities at December 31, 2018 are shown below by contractual maturity. (dollars in thousands) Amortized Cost Estimated Fair Value Due in one year or less $ 377,745 $ 376,564 Due after one year through five years 1,293,384 1,298,995 Due after five years through ten years 2,103,596 2,137,866 Due after ten years 3,578,361 3,679,984 7,353,086 7,493,409 Commercial mortgage-backed securities 1,691,572 1,650,199 Residential mortgage-backed securities 886,501 880,172 Asset-backed securities 19,614 19,408 Total fixed maturities $ 9,950,773 $ 10,043,188 |
Components Of Net Investment Income | The following table presents the components of net investment income. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Interest: Municipal bonds (tax-exempt) $ 80,016 $ 87,768 $ 88,654 Municipal bonds (taxable) 73,058 70,771 65,749 Other taxable bonds 159,329 145,085 144,752 Short-term investments, including overnight deposits 48,765 26,772 11,177 Dividends on equity securities 90,840 82,096 70,577 Income (loss) from equity method investments (1,924 ) 11,076 6,852 Other 881 (828 ) 2,676 450,965 422,740 390,437 Investment expenses (16,750 ) (17,031 ) (17,207 ) Net investment income $ 434,215 $ 405,709 $ 373,230 |
Summary Of Net Realized Investment Gains (Losses) And The Change In Net Unrealized Gains On Investments | The following table presents net investment gains (losses) and the change in net unrealized gains on available-for-sale investments. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Realized gains: Sales and maturities of fixed maturities $ 4,221 $ 5,525 $ 5,160 Sales of equity securities (1) — 40,113 70,177 Sales and maturities of short-term investments 1,604 — — Other 1,281 6,644 1,415 Total realized gains 7,106 52,282 76,752 Realized losses: Sales and maturities of fixed maturities (5,768 ) (1,983 ) (704 ) Sales of equity securities (1) — (1,830 ) (6,988 ) Sales and maturities of short-term investments (10,545 ) (699 ) (522 ) Other-than-temporary impairments — (7,589 ) (18,355 ) Other (2,767 ) (596 ) (1,827 ) Total realized losses (19,080 ) (12,697 ) (28,396 ) Net realized investment gains (losses) (11,974 ) 39,585 48,356 Change in fair value of equity securities: (1) Change in fair value of equity securities sold during the period 20,177 6,989 (3,990 ) Change in fair value of equity securities held at the end of the period (445,799 ) (51,877 ) 20,781 Change in fair value of equity securities (1) (425,622 ) (44,888 ) 16,791 Net investment gains (losses) $ (437,596 ) $ (5,303 ) $ 65,147 Change in net unrealized gains on available-for-sale investments included in other comprehensive income (loss): Fixed maturities $ (297,158 ) $ 89,741 $ (56,534 ) Equity securities (1) — 1,035,793 398,752 Short-term investments (2,288 ) (94 ) (107 ) Net increase (decrease) $ (299,446 ) $ 1,125,440 $ 342,111 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. Prior to adopting ASU No. 2016-01, the Company recorded certain investments in equity securities at estimated fair value with changes in fair value recorded in net income. |
Schedule of Restricted Assets [Table Text Block] | Total restricted assets are included on the Company's consolidated balance sheets as follows. December 31, (dollars in thousands) 2018 2017 Investments $ 4,781,566 $ 4,672,073 Restricted cash and cash equivalents 382,264 302,387 Total $ 5,163,830 $ 4,974,460 |
Components Of Restricted Assets | The following table presents the components of restricted assets. December 31, (dollars in thousands) 2018 2017 Restricted assets held in trust or on deposit to support underwriting activities $ 4,780,613 $ 4,624,998 Investments and cash and cash equivalents pledged as security for letters of credit 383,217 349,462 Total $ 5,163,830 $ 4,974,460 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Components Of Receivables | The following table presents the components of receivables. December 31, (dollars in thousands) 2018 2017 Amounts receivable from agents, brokers and insureds $ 1,327,549 $ 1,281,366 Trade accounts receivable 226,282 181,666 Notes receivable 40,375 528 Program services fees receivable 24,787 22,767 Employee stock loans receivable (see note 12(c)) 19,227 18,499 Investment management and incentive fees receivable 16,744 5,796 Insurance proceeds receivable — 39,196 Other 53,140 31,410 1,708,104 1,581,228 Allowance for doubtful receivables (15,578 ) (13,775 ) Receivables $ 1,692,526 $ 1,567,453 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Amounts Of Policy Acquisition Costs Deferred And Amortized | The following table presents the amounts of policy acquisition costs deferred and amortized. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Balance, beginning of year $ 465,569 $ 392,410 $ 352,756 Policy acquisition costs deferred 1,024,888 964,755 823,840 Amortization of policy acquisition costs (1,009,303 ) (894,353 ) (782,221 ) Foreign currency movements (6,641 ) 2,757 (1,965 ) Deferred policy acquisition costs $ 474,513 $ 465,569 $ 392,410 |
Components Of Underwriting, Acquisition And Insurance Expenses | The following table presents the components of underwriting, acquisition and insurance expenses. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Amortization of policy acquisition costs $ 1,009,303 $ 894,353 $ 782,221 Other operating expenses 768,208 695,111 714,904 Underwriting, acquisition and insurance expenses $ 1,777,511 $ 1,589,464 $ 1,497,125 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Components Of Property And Equipment | The following table presents the components of property and equipment, which are included in other assets on the consolidated balance sheets. December 31, (dollars in thousands) 2018 2017 Land $ 72,011 $ 66,885 Buildings 137,095 119,729 Leasehold improvements 108,973 98,246 Land improvements 93,545 89,444 Furniture and equipment 392,060 341,450 Other 227,356 196,465 1,031,040 912,219 Accumulated depreciation and amortization (479,498 ) (410,602 ) Property and equipment $ 551,542 $ 501,617 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components Of Goodwill | The following table presents the components of goodwill by reportable segment. Prior year amounts have been recast for consistency with the current year presentation. (dollars in thousands) Insurance Reinsurance Markel Ventures Other (1) Total January 1, 2017 $ 672,763 $ 122,745 $ 237,767 $ 108,973 $ 1,142,248 Acquisitions (see note 2) 93,123 — 186,194 347,418 626,735 Foreign currency movements and other adjustments 5,935 — 1,020 1,526 8,481 December 31, 2017 (2) $ 771,821 $ 122,745 $ 424,981 $ 457,917 $ 1,777,464 Acquisitions (see note 2) — — 73,174 474,901 548,075 Impairment of goodwill — — — (91,910 ) (91,910 ) Foreign currency movements and other adjustments (1,637 ) — (817 ) 6,800 4,346 December 31, 2018 (2) $ 770,184 $ 122,745 $ 497,338 $ 847,708 $ 2,237,975 (1) Amounts included in Other reflect the Company's operations that are not included in a reportable segment. (2) As of December 31, 2018 , goodwill was net of accumulated impairment losses of $139.2 million , of which $91.9 million was in Other and $47.3 million was in Markel Ventures. As of December 31, 2017 , goodwill was net of accumulated impairment losses of $47.3 million , all of which was included in Markel Ventures. |
Components Of Intangible Assets | The following table presents the components of intangible assets. December 31, 2018 2017 (dollars in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships $ 953,739 $ (204,261 ) $ 941,477 $ (161,797 ) Investment management agreements 441,000 — 98,000 (14,000 ) Broker relationships 204,367 (78,559 ) 184,959 (69,677 ) Trade names 193,154 (62,827 ) 164,335 (59,660 ) Technology 109,208 (47,090 ) 94,712 (44,489 ) Agent relationships 92,000 (10,175 ) 92,000 (4,042 ) Insurance licenses 74,635 — 70,385 — Renewal rights 21,053 (18,272 ) 19,514 (17,681 ) Other 107,441 (49,217 ) 111,633 (49,988 ) Total $ 2,196,597 $ (470,401 ) $ 1,777,015 $ (421,334 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components Of Income Before Income Taxes | Income (loss) before income taxes includes the following components. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Domestic operations $ 99,373 $ 337,704 $ 288,905 Foreign operations (107,228 ) (250,409 ) 341,015 Income (loss) before income taxes $ (7,855 ) $ 87,295 $ 629,920 |
Components Of Income Tax Expense (Benefit) | Income tax expense (benefit) includes the following components. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Current: Domestic $ 77,936 $ (19,255 ) $ 57,916 Foreign 41,833 29,882 48,203 Total current tax expense 119,769 10,627 106,119 Deferred: Domestic (77,255 ) (222,427 ) 19,991 Foreign 79,984 (101,663 ) 43,367 Total deferred tax expense (benefit) 2,729 (324,090 ) 63,358 Income tax expense (benefit) $ 122,498 $ (313,463 ) $ 169,477 |
Reconciliations Of United States Corporate Income Tax Rate To Effective Tax Rate On Income Before Income Taxes | The following table presents a reconciliation of income taxes computed using the U.S. corporate tax rate to the Company's income tax expense (benefit). Years Ended December 31, 2018 2017 2016 Income taxes at U.S. corporate tax rate $ (1,650 ) $ 30,553 $ 220,472 Increase (decrease) resulting from: Change in tax status of U.K. subsidiaries 103,281 — — Nondeductible loss on investments managed by MCIM 26,552 16,231 — Foreign operations 4,951 37,207 4,672 Tax-exempt investment income (18,927 ) (41,565 ) (39,710 ) TCJA (5,699 ) (339,899 ) — Tax credits (3,617 ) (10,236 ) (13,294 ) Stock based compensation (2,635 ) (9,001 ) (5,411 ) Other 20,242 3,247 2,748 Income tax expense (benefit) $ 122,498 $ (313,463 ) $ 169,477 |
Components Of Domestic And Foreign Deferred Tax Assets And Liabilities | The following table presents the components of domestic and foreign deferred tax assets and liabilities. December 31, (dollars in thousands) 2018 2017 Assets: Unpaid losses and loss adjustment expenses $ 164,497 $ 144,761 Unearned premiums recognized for income tax purposes 85,952 74,282 Life and annuity benefits 78,370 77,945 Net operating loss carryforwards 46,662 29,252 Tax credit carryforwards 39,877 48,938 Accrued incentive compensation 30,308 23,167 Other differences between financial reporting and tax bases 39,763 60,995 Total gross deferred tax assets 485,429 459,340 Less valuation allowance (36,286 ) (25,225 ) Total gross deferred tax assets, net of allowance 449,143 434,115 Liabilities: Investments 590,250 603,523 Goodwill and other intangible assets 124,953 171,681 Deferred policy acquisition costs 89,716 90,826 Other differences between financial reporting and tax bases 90,269 73,664 Total gross deferred tax liabilities 895,188 939,694 Net deferred tax liability $ 446,045 $ 505,579 |
Unpaid Losses And Loss Adjust_2
Unpaid Losses And Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract] | |
Reconciliation Of Consolidated Reserves For Losses And Loss Adjustment Expenses | The following table presents a reconciliation of consolidated beginning and ending reserves for losses and loss adjustment expenses. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Net reserves for losses and loss adjustment expenses, beginning of year $ 8,964,945 $ 8,108,717 $ 8,235,288 Foreign currency movements (69,119 ) 110,079 (129,692 ) Adjusted net reserves for losses and loss adjustment expenses, beginning of year 8,895,826 8,218,796 8,105,596 Incurred losses and loss adjustment expenses: Current accident year 3,371,699 3,367,223 2,555,902 Prior accident years (551,040 ) (497,627 ) (493,495 ) Total incurred losses and loss adjustment expenses 2,820,659 2,869,596 2,062,407 Payments: Current accident year 666,515 671,112 532,140 Prior accident years 1,835,027 1,513,580 1,529,206 Total payments 2,501,542 2,184,692 2,061,346 Effect of foreign currency rate changes (500 ) 3,752 2,060 Net reserves for losses and loss adjustment expenses of acquired insurance companies — 57,493 — Net reserves for losses and loss adjustment expenses, end of year 9,214,443 8,964,945 8,108,717 Reinsurance recoverable on unpaid losses 5,062,036 4,619,336 2,006,945 Gross reserves for losses and loss adjustment expenses, end of year $ 14,276,479 $ 13,584,281 $ 10,115,662 |
Ultimate Incurred Losses And Cumulative Paid Losses And Allocated Loss Adjustment Expenses, Net Of Reinsurance | Reinsurance Segment Ultimate Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Total of Incurred-but-Not-Reported Liabilities, Net of Reinsurance Unaudited As of December 31, (in thousands) As of December 31, Accident Year 2012 2013 2014 2015 2016 2017 2018 December 31, 2018 2012 $ 72,903 $ 550,343 $ 507,023 $ 485,374 $ 457,038 $ 454,839 $ 446,722 $ 62,700 2013 586,074 578,994 547,828 534,148 543,963 506,609 78,266 2014 577,123 564,720 536,247 578,688 556,775 121,489 2015 528,076 514,050 531,854 522,783 197,446 2016 523,958 533,526 531,769 199,881 2017 906,216 939,604 403,107 2018 760,161 543,670 Total $ 4,264,423 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Unaudited As of December 31, As of December 31, Accident Year 2012 2013 2014 2015 2016 2017 2018 2012 $ 4,049 $ 64,460 $ 128,769 $ 183,943 $ 231,541 $ 263,811 $ 288,772 2013 71,503 155,515 209,893 268,761 301,714 331,630 2014 97,918 158,105 226,883 275,278 312,296 2015 63,924 133,932 207,985 259,366 2016 79,383 169,877 241,072 2017 158,049 359,659 2018 87,614 Total $ 1,880,409 All outstanding liabilities for unpaid losses and loss adjustment expenses before 2012, net of reinsurance 650,117 Total liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 3,034,131 The Insurance segment table below also includes claim frequency information, by accident year. The Company defines a claim as a single claim incident, per policy, which may include multiple claimants and multiple coverages on a single policy. Claim counts include claims closed without a payment as well as claims where the Company is monitoring to determine if an exposure exists, even if a reserve has not been established. All of the business contained within the Company's Reinsurance segment represents treaty business that is assumed from other insurance or reinsurance companies, for which the Company does not have access to the underlying claim counts. Further, this business includes both quota share and excess of loss treaty reinsurance, through which only a portion of each reported claim results in losses to the Company. As such, the Company has excluded claim count information from the Reinsurance segment disclosures. In 2013, the Company completed the acquisition of Alterra Capital Holdings Limited (Alterra), the results of which are included in both of the Company's reportable segments. Ultimate incurred losses and loss adjustment expenses, net of reinsurance as of December 31, 2013 include outstanding liabilities for losses and loss adjustment expenses of Alterra as of the acquisition date, by accident year, and not in any prior periods. Pre-acquisition data is not available by segment and accident year due in part to the impact of significant intercompany reinsurance contracts. Additionally, Alterra reserves were historically determined on a policy year basis and pre-acquisition data does not exist in a format that can be used to determine accident year. Following the acquisition, ongoing business attributable to Alterra was integrated with the Company's other insurance operations and is not separately tracked. Insurance Segment Ultimate Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Total of Incurred-but-Not-Reported Liabilities, Net of Reinsurance Cumulative Number of Reported Claims Unaudited As of December 31, (in thousands) As of December 31, Accident Year 2012 2013 2014 2015 2016 2017 2018 December 31, 2018 2012 $ 1,369,219 $ 1,609,802 $ 1,489,026 $ 1,427,255 $ 1,395,103 $ 1,361,513 $ 1,348,062 $ 119,585 127 2013 1,735,667 1,694,879 1,525,750 1,462,652 1,428,733 1,387,804 200,744 87 2014 1,862,947 1,695,698 1,627,960 1,570,428 1,522,132 213,237 78 2015 1,783,064 1,710,271 1,585,447 1,530,354 291,364 84 2016 1,871,455 1,786,959 1,686,374 378,681 89 2017 2,326,966 2,160,771 691,736 116 2018 2,452,747 1,466,264 147 Total $ 12,088,244 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Unaudited As of December 31, As of December 31, Accident Year 2012 2013 2014 2015 2016 2017 2018 2012 $ 233,371 $ 567,450 $ 780,067 $ 937,643 $ 1,052,859 $ 1,117,221 $ 1,150,793 2013 271,439 571,548 779,023 949,370 1,037,635 1,099,985 2014 331,626 657,742 894,470 1,062,211 1,167,598 2015 322,633 665,112 876,509 1,040,377 2016 372,182 752,606 981,920 2017 438,289 990,931 2018 496,812 Total $ 6,928,416 All outstanding liabilities for unpaid losses and loss adjustment expenses before 2012, net of reinsurance 605,610 Total liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 5,765,438 |
Average Annual Percentage Payout Of Incurred Losses By Age (in Years), Net Of Reinsurance | The following table presents supplementary information about average historical claims duration as of December 31, 2018 based on the cumulative incurred and paid losses and allocated loss adjustment expenses presented above. Average Annual Percentage Payout of Incurred Losses by Age (in Years), Net of Reinsurance Unaudited 1 2 3 4 5 6 7 Insurance 20.3 % 23.1 % 14.7 % 11.4 % 7.3 % 4.6 % 2.5 % Reinsurance 12.6 % 15.5 % 13.0 % 10.6 % 7.9 % 6.6 % 5.6 % |
Reconciliation Of Net Incurred And Paid Loss Development Tables, By Segment, To The Liability For Losses And Loss Adjustment Expenses In The Consolidated Balance Sheet | The following table reconciles the net incurred and paid loss development tables to the liability for losses and loss adjustment expenses in the consolidated balance sheet. (dollars in thousands) December 31, 2018 Net outstanding liabilities Insurance segment $ 5,765,438 Reinsurance segment 3,034,131 Other 204,069 Program services 2,561 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance 9,006,199 Reinsurance recoverable on unpaid losses Insurance segment 1,965,565 Reinsurance segment 415,900 Other 166,505 Program services 2,514,066 Total reinsurance recoverable on unpaid losses 5,062,036 Unallocated loss adjustment expenses 239,753 Unamortized discount, net of acquisition fair value adjustments, included in unpaid losses and loss adjustment expenses (31,509 ) 208,244 Total gross liability for unpaid losses and loss adjustment expenses $ 14,276,479 |
Reconciliation Of Asbestos And Environmental Reserves For Losses And Loss Adjustment Expenses | The following table provides a reconciliation of beginning and ending A&E reserves for losses and loss adjustment expenses, which are a component of consolidated unpaid losses and loss adjustment expenses. Amounts included in the following table are presented before consideration of reinsurance allowances. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Net reserves for A&E losses and loss adjustment expenses, beginning of year $ 104,661 $ 111,604 $ 132,869 Commutations and other (305 ) 6,827 — Adjusted net reserves for A&E losses and loss adjustment expenses, beginning of year 104,356 118,431 132,869 Incurred losses and loss adjustment expenses — 659 (5,277 ) Payments (21,308 ) (14,429 ) (15,988 ) Net reserves for A&E losses and loss adjustment expenses, end of year 83,048 104,661 111,604 Reinsurance recoverable on unpaid losses 164,663 169,866 212,300 Gross reserves for A&E losses and loss adjustment expenses, end of year $ 247,711 $ 274,527 $ 323,904 |
Life And Annuity Benefits (Tabl
Life And Annuity Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Liability for Future Policy Benefits [Abstract] | |
Schedule Of Life And Annuity Benefits | The following table presents life and annuity benefits. December 31, (dollars in thousands) 2018 2017 Life $ 122,798 $ 127,208 Annuities 827,773 885,984 Accident and health 50,882 58,920 Total $ 1,001,453 $ 1,072,112 |
Senior Long-Term Debt And Oth_2
Senior Long-Term Debt And Other Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary Of Senior Long-Term Debt And Other Debt | The following table summarizes the Company's senior long-term debt and other debt. December 31, (dollars in thousands) 2018 2017 7.125% unsecured senior notes, due September 30, 2019, interest payable semi-annually, net of unamortized discount of $142 in 2018 and $332 in 2017 $ 234,640 $ 234,411 6.25% unsecured senior notes, due September 30, 2020, interest payable semi-annually, net of unamortized premium of $17,213 in 2018 and $26,618 in 2017 367,213 376,616 5.35% unsecured senior notes, due June 1, 2021, interest payable semi-annually, net of unamortized discount of $499 in 2018 and $706 in 2017 249,417 249,176 4.90% unsecured senior notes, due July 1, 2022, interest payable semi-annually, net of unamortized discount of $978 in 2018 and $1,257 in 2017 348,864 348,540 3.625% unsecured senior notes, due March 30, 2023, interest payable semi-annually, net of unamortized discount of $855 in 2018 and $1,056 in 2017 248,988 248,749 3.50% unsecured senior notes, due November 1, 2027, interest payable semi-annually, net of unamortized discount of $2,298 in 2018 and $2,558 in 2017 297,035 296,728 7.35% unsecured senior notes, due August 15, 2034, interest payable semi-annually, net of unamortized discount of $1,074 in 2018 and $1,143 in 2017 128,715 128,642 5.0% unsecured senior notes, due March 30, 2043, interest payable semi-annually, net of unamortized discount of $5,431 in 2018 and $5,655 in 2017 244,269 244,033 5.0% unsecured senior notes, due April 5, 2046, interest payable semi-annually, net of unamortized discount of $6,664 in 2018 and $6,909 in 2017 492,486 492,219 4.30% unsecured senior notes, due November 1, 2047, interest payable semi-annually, net of unamortized discount of $4,278 in 2018 and $4,451 in 2017 294,975 294,834 Other debt, at various interest rates ranging from 1.7% to 6.3% 102,975 185,282 Senior long-term debt and other debt $ 3,009,577 $ 3,099,230 |
Summary Of Future Principal Payments Due At Maturity On Senior Long-Term Debt And Other Debt | The following table summarizes the future principal payments due at maturity on senior long-term debt and other debt as of December 31, 2018 . Years Ending December 31, (dollars in thousands) 2019 $ 288,538 2020 356,585 2021 281,287 2022 356,315 2023 250,671 2024 and thereafter 1,484,896 Total principal payments $ 3,018,292 Net unamortized discount (5,005 ) Net unamortized debt issuance costs (3,710 ) Senior long-term debt and other debt $ 3,009,577 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [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. Basic shares outstanding include restricted stock units that are no longer subject to any contingencies for issuance, but for which the corresponding shares have not been issued. Diluted net income per share is computed by dividing adjusted net income to shareholders by the weighted average number of common shares and dilutive potential common shares outstanding during the year. Average closing common stock market prices are used to calculate the dilutive effect attributable to restricted stock. Years Ended December 31, (in thousands, except per share amounts) 2018 2017 2016 Net income (loss) to shareholders (1) $ (128,180 ) $ 395,269 $ 455,689 Adjustment of redeemable noncontrolling interests (4,828 ) (33,738 ) (15,472 ) Adjusted net income (loss) to shareholders $ (133,008 ) $ 361,531 $ 440,217 Basic common shares outstanding 13,923 13,964 14,013 Dilutive potential common shares from options — 1 4 Dilutive potential common shares from restricted stock units and restricted stock — 41 61 Diluted shares outstanding 13,923 14,006 14,078 Basic net income (loss) per share $ (9.55 ) $ 25.89 $ 31.41 Diluted net income (loss) per share (2) $ (9.55 ) $ 25.81 $ 31.27 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. (2) The impact of restricted stock units and restricted stock of 25 thousand shares was excluded from the computation of diluted earnings per share for the year ended December 31, 2018 because the effect would have been anti-dilutive. |
Summary Of Nonvested Share-Based Awards | The following table summarizes nonvested share-based awards. Number of Awards Weighted Average Grant-Date Fair Value Nonvested awards at January 1, 2018 31,518 $ 808.63 Granted 14,306 1,121.68 Vested (24,535 ) 779.65 Forfeited (416 ) 914.94 Nonvested awards at December 31, 2018 20,873 $ 1,042.83 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
Change In Accumulated Other Comprehensive Income By Component, Net Of Taxes And Noncontrolling Interests | The following table presents the change in accumulated other comprehensive income (loss) by component, net of taxes and noncontrolling interests. (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 (loss) before reclassifications 275,696 (11,710 ) (20,700 ) 243,286 Amounts reclassified from accumulated other comprehensive income (33,528 ) — 1,600 (31,928 ) Total other comprehensive income (loss) 242,168 (11,710 ) (19,100 ) 211,358 December 31, 2016 $ 1,714,930 $ (84,406 ) $ (64,658 ) $ 1,565,866 Other comprehensive income before reclassifications 787,339 10,403 3,092 800,834 Amounts reclassified from accumulated other comprehensive income (24,296 ) — 3,167 (21,129 ) Total other comprehensive income 763,043 10,403 6,259 779,705 December 31, 2017 $ 2,477,973 $ (74,003 ) $ (58,399 ) $ 2,345,571 Cumulative effect of adoption of ASU No. 2016-01 (2,597,976 ) 2,492 — (2,595,484 ) Cumulative effect of adoption of ASU No. 2018-02 401,539 1,314 — 402,853 January 1, 2018 281,536 (70,197 ) (58,399 ) 152,940 Other comprehensive loss before reclassifications (241,325 ) (16,455 ) — (257,780 ) Amounts reclassified from accumulated other comprehensive income (1) 7,849 — 2,341 10,190 Total other comprehensive income (loss) (233,476 ) (16,455 ) 2,341 (247,590 ) December 31, 2018 $ 48,060 $ (86,652 ) $ (56,058 ) $ (94,650 ) (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. |
Summary Of Tax Expense (Benefit) Of Other Comprehensive Income (Loss) | The following table summarizes the tax expense (benefit) associated with each component of other comprehensive income (loss). Years Ended December 31, (dollars in thousands) 2018 2017 2016 Change in net unrealized gains on available-for-sale investments: (1) Net holding gains (losses) arising during the period $ (68,056 ) $ 372,469 $ 112,399 Change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period — — 6 Reclassification adjustments for net gains (losses) included in net income (loss) 2,086 (10,072 ) (12,462 ) Change in net unrealized gains on available-for-sale investments (65,970 ) 362,397 99,943 Change in foreign currency translation adjustments 1,523 28 1,037 Change in net actuarial pension loss 622 1,284 (4,192 ) Total $ (63,825 ) $ 363,709 $ 96,788 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. |
Reclassifications From Accumulated Other Comprehensive Income Into Income, By Component | The following table presents the details of amounts reclassified from accumulated other comprehensive income into income , by component. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Unrealized holding gains on available-for-sale investments: (1) Other-than-temporary impairment losses $ — $ (7,589 ) $ (18,355 ) Net realized investment gains (losses), excluding other-than-temporary impairment losses (9,935 ) 41,957 64,345 Total before income taxes (9,935 ) 34,368 45,990 Income taxes 2,086 (10,072 ) (12,462 ) Reclassification of unrealized holding gains, net of taxes $ (7,849 ) $ 24,296 $ 33,528 Net actuarial pension loss: Underwriting, acquisition and insurance expenses $ (2,963 ) $ (3,815 ) $ (1,951 ) Income taxes 622 648 351 Reclassification of net actuarial pension loss, net of taxes $ (2,341 ) $ (3,167 ) $ (1,600 ) (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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. December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investments: Fixed maturities, available-for-sale: U.S. Treasury securities $ — $ 246,642 $ — $ 246,642 U.S. government-sponsored enterprises — 359,322 — 359,322 Obligations of states, municipalities and political subdivisions — 4,352,930 — 4,352,930 Foreign governments — 1,559,604 — 1,559,604 Commercial mortgage-backed securities — 1,650,199 — 1,650,199 Residential mortgage-backed securities — 880,172 — 880,172 Asset-backed securities — 19,408 — 19,408 Corporate bonds — 974,911 — 974,911 Total fixed maturities, available-for-sale — 10,043,188 — 10,043,188 Equity securities: Insurance, banks and other financial institutions 1,876,811 — 53,728 1,930,539 Industrial, consumer and all other 3,790,406 — — 3,790,406 Total equity securities 5,667,217 — 53,728 5,720,945 Short-term investments, available-for-sale 981,616 96,080 — 1,077,696 Total investments $ 6,648,833 $ 10,139,268 $ 53,728 $ 16,841,829 December 31, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investments available-for-sale: Fixed maturities: U.S. Treasury securities $ — $ 160,613 $ — $ 160,613 U.S. government-sponsored enterprises — 363,520 — 363,520 Obligations of states, municipalities and political subdivisions — 4,566,562 — 4,566,562 Foreign governments — 1,489,228 — 1,489,228 Commercial mortgage-backed securities — 1,234,326 — 1,234,326 Residential mortgage-backed securities — 856,168 — 856,168 Asset-backed securities — 34,728 — 34,728 Corporate bonds — 1,235,525 — 1,235,525 Total fixed maturities — 9,940,670 — 9,940,670 Equity securities: (1) Insurance, banks and other financial institutions 1,934,224 — 168,809 2,103,033 Industrial, consumer and all other 3,864,814 — — 3,864,814 Total equity securities 5,799,038 — 168,809 5,967,847 Short-term investments 2,065,749 95,225 — 2,160,974 Total investments available-for-sale (1) $ 7,864,787 $ 10,035,895 $ 168,809 $ 18,069,491 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See note 1. |
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. (dollars in thousands) 2018 2017 Equity securities, beginning of period $ 168,809 $ 191,203 Purchases 28,900 56,250 Sales (35,335 ) (26,674 ) Net investment losses on Level 3 investments (1) (108,646 ) (51,970 ) Transfers into Level 3 — — Transfers out of Level 3 — — Equity securities, end of period $ 53,728 $ 168,809 (1) Included in change in fair value of equity securities in the consolidated statements of income (loss) and comprehensive income (loss) for the years ended December 31, 2018 and 2017. |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
Effect Of Reinsurance And Retrocessional Reinsurance On Consolidated Premiums Written And Earned | The following tables summarize the effect of reinsurance and retrocessional reinsurance on premiums written and earned. Year Ended December 31, 2018 (dollars in thousands) Direct Assumed Ceded Net Premiums Underwriting: Written $ 4,562,256 $ 1,236,740 $ (1,013,406 ) $ 4,785,590 Earned $ 4,384,562 $ 1,291,032 $ (964,549 ) $ 4,711,045 Program services: Written 2,022,548 42,925 (2,063,485 ) 1,988 Earned 1,850,656 28,581 (1,878,222 ) 1,015 Consolidated: Written $ 6,584,804 $ 1,279,665 $ (3,076,891 ) $ 4,787,578 Earned $ 6,235,218 $ 1,319,613 $ (2,842,771 ) $ 4,712,060 Year Ended December 31, 2017 (dollars in thousands) Direct Assumed Ceded Net Premiums Underwriting: Written $ 3,919,602 $ 1,333,505 $ (835,320 ) $ 4,417,787 Earned $ 3,777,335 $ 1,286,043 $ (815,400 ) $ 4,247,978 Program services: Written 252,865 988 (253,853 ) — Earned 291,287 1,352 (292,639 ) — Consolidated: Written $ 4,172,467 $ 1,334,493 $ (1,089,173 ) $ 4,417,787 Earned $ 4,068,622 $ 1,287,395 $ (1,108,039 ) $ 4,247,978 Year Ended December 31, 2016 (dollars in thousands) Direct Assumed Ceded Net Premiums Underwriting: Written $ 3,560,635 $ 1,236,010 $ (795,625 ) $ 4,001,020 Earned $ 3,506,687 $ 1,176,205 $ (817,022 ) $ 3,865,870 Program services: Written — — — — Earned — — — — Consolidated: Written $ 3,560,635 $ 1,236,010 $ (795,625 ) $ 4,001,020 Earned $ 3,506,687 $ 1,176,205 $ (817,022 ) $ 3,865,870 |
Variable Interest Entities Vari
Variable Interest Entities Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | The following table presents the assets and liabilities of the Markel Diversified Fund, which are included in the Company's consolidated balance sheet. December 31, (dollars in thousands) 2018 2017 Assets Equity securities: Investment in unconsolidated Markel CATCo Fund $ 27,547 $ 168,192 Other 1,082 2,059 Total Assets $ 28,629 $ 170,251 Liabilities Note payable $ 24,875 $ 62,500 Other 200 168 Total Liabilities $ 25,075 $ 62,668 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Annual Rental Commitments | The following table summarizes the Company's minimum annual rental commitments, excluding taxes, insurance and other operating costs payable directly by the Company, for noncancelable operating leases at December 31, 2018 . Years Ending December 31, (dollars in thousands) 2019 $ 48,853 2020 41,630 2021 37,602 2022 31,898 2023 28,261 2024 and thereafter 117,663 Total $ 305,907 |
Statutory Financial Informati_2
Statutory Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statutory Financial Information [Abstract] | |
Actual Statutory Capital And Surplus | Statutory capital and surplus and statutory net income (loss) for the Company's insurance subsidiaries as of December 31, 2018 and 2017 and for the years ended December 31, 2018 , 2017 and 2016 , respectively, is summarized below. Statutory Capital and Surplus December 31, (dollars in thousands) 2018 2017 United States $ 3,158,828 $ 3,424,330 United Kingdom $ 621,802 $ 642,418 Bermuda $ 1,495,563 $ 1,779,387 Other $ 74,704 $ 34,002 |
Statutory Net Income (Loss) | Statutory Net Income (Loss) Years Ended December 31, (dollars in thousands) 2018 2017 2016 United States $ 414,957 $ 312,828 $ 249,176 United Kingdom $ 40,203 $ (25,785 ) $ 78,033 Bermuda $ (131,411 ) $ (78,070 ) $ 132,442 Other $ (5,193 ) $ (4,812 ) $ (965 ) |
Segment Reporting Disclosures (
Segment Reporting Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Company's Segment Disclosures | The following tables summarize the Company's segment disclosures. Year Ended December 31, 2018 (dollars in thousands) Insurance Reinsurance Investing Markel Ventures Other (1) Consolidated Gross premium volume $ 4,749,166 $ 1,050,870 $ — $ — $ 2,064,433 $ 7,864,469 Net written premiums 3,904,773 882,285 — — 520 4,787,578 Earned premiums 3,783,939 928,574 — — (453 ) 4,712,060 Losses and loss adjustment expenses: Current accident year (2,596,057 ) (775,642 ) — — — (3,371,699 ) Prior accident years 502,260 42,982 — — 5,742 550,984 Amortization of policy acquisition costs (770,183 ) (239,120 ) — — — (1,009,303 ) Other operating expenses (691,186 ) (75,081 ) — — (1,941 ) (768,208 ) Underwriting profit (loss) 228,773 (118,287 ) — — 3,348 113,834 Net investment income — — 433,702 513 — 434,215 Net investment losses (2) — — (437,596 ) — — (437,596 ) Products revenues — — — 1,497,523 — 1,497,523 Services and other revenues — — — 414,542 220,541 635,083 Products expenses (3) — — — (1,413,248 ) — (1,413,248 ) Services and other expenses (3) — — — (366,739 ) (108,185 ) (474,924 ) Amortization of intangible assets (4) — — — (40,208 ) (75,722 ) (115,930 ) Impairment of goodwill and intangible assets — — — (14,904 ) (184,294 ) (199,198 ) Segment profit (loss) $ 228,773 $ (118,287 ) $ (3,894 ) $ 77,479 $ (144,312 ) $ 39,759 Interest expense (154,212 ) Net foreign exchange gains 106,598 Loss before income taxes $ (7,855 ) U.S. GAAP combined ratio (5) 94 % 113 % NM (6) 98 % (1) Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets and impairment of goodwill and intangible assets that are not allocated to a reportable segment. (2) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment losses within net income. Prior periods have not been restated to conform to the current presentation. See note 1. (3) Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $52.2 million for the year ended December 31, 2018 . (4) Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. (5) 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. (6) NM - Ratio is not meaningful Year Ended December 31, 2017 (dollars in thousands) Insurance Reinsurance Investing Markel Ventures Other (1) Consolidated Gross premium volume $ 4,141,201 $ 1,112,101 $ — $ — $ 253,658 $ 5,506,960 Net written premiums 3,439,796 978,160 — — (169 ) 4,417,787 Earned premiums 3,314,033 934,114 (169 ) 4,247,978 Losses and loss adjustment expenses: Current accident year (2,442,344 ) (924,879 ) — — — (3,367,223 ) Prior accident years 500,627 (7,803 ) — — 8,638 501,462 Amortization of policy acquisition costs (675,470 ) (218,883 ) — — — (894,353 ) Other operating expenses (611,749 ) (82,567 ) — — (795 ) (695,111 ) Underwriting profit (loss) 85,097 (300,018 ) — — 7,674 (207,247 ) Net investment income — — 405,377 332 405,709 Net investment losses (2) — — (5,303 ) — (5,303 ) Products revenues — — — 951,012 — 951,012 Services and other revenues — — — 382,268 79,995 462,263 Products expenses (3) — — — (850,449 ) — (850,449 ) Services and other expenses (3) — — — (336,484 ) (122,137 ) (458,621 ) Amortization of intangible assets (4) — — — (31,429 ) (49,329 ) (80,758 ) Segment profit (loss) $ 85,097 $ (300,018 ) $ 400,074 $ 115,250 $ (83,797 ) $ 216,606 Interest expense (132,451 ) Net foreign exchange gains 3,140 Income before income taxes $ 87,295 U.S. GAAP combined ratio (5) 97 % 132 % NM (6) 105 % (1) Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets that is not allocated to a reportable segment. (2) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment losses within net income. Prior periods have not been restated to conform to the current presentation. See note 1. (3) Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $41.7 million for the year ended December 31, 2017 . (4) Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. (5) 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. (6) NM - Ratio is not meaningful Year Ended December 31, 2016 (dollars in thousands) Insurance Reinsurance Investing Markel Ventures Other (1) Consolidated Gross premium volume $ 3,755,081 $ 1,041,055 $ — $ — $ 509 $ 4,796,645 Net written premiums 3,101,657 898,728 — — 635 4,001,020 Earned premiums 3,028,844 836,264 — — 762 3,865,870 Losses and loss adjustment expenses: Current accident year (2,009,426 ) (546,476 ) — — — (2,555,902 ) Prior accident years 369,594 125,514 — — 10,050 505,158 Amortization of policy acquisition costs (592,766 ) (189,455 ) — — — (782,221 ) Other operating expenses (597,201 ) (116,642 ) — — (1,061 ) (714,904 ) Underwriting profit 199,045 109,205 — — 9,751 318,001 Net investment income — — 373,121 109 373,230 Net investment gains (2) — — 65,147 — 65,147 Products revenues — — — 885,473 — 885,473 Services and other revenues — — — 328,976 93,330 422,306 Products expenses (3) — — — (755,591 ) — (755,591 ) Services and other expenses (3) — — — (297,841 ) (118,300 ) (416,141 ) Amortization of intangible assets (4) — — — (29,105 ) (39,428 ) (68,533 ) Impairment of goodwill and intangible assets — — — (18,723 ) — (18,723 ) Segment profit (loss) $ 199,045 $ 109,205 $ 438,268 $ 113,298 $ (54,647 ) $ 805,169 Interest expense (129,896 ) Loss on early extinguishment of debt (44,100 ) Net foreign exchange losses (1,253 ) Income before income taxes $ 629,920 U.S. GAAP combined ratio (5) 93 % 87 % NM (6) 92 % (1) Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets and impairment of goodwill and intangible assets that are not allocated to a reportable segment. (2) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment gains within net income. Prior periods have not been restated to conform to the current presentation. See note 1. (3) Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $35.5 million for the year ended December 31, 2016 . (4) Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. (5) 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. (6) NM - Ratio is not meaningful |
Summary Of Deferred Policy Acquisition Costs, Unearned Premiums And Unpaid Losses And Loss Adjustment Expenses | The following table summarizes deferred policy acquisition costs, unearned premiums and unpaid losses and loss adjustment expenses. (dollars in thousands) Deferred Policy Acquisition Costs Unearned Premiums Unpaid Losses and Loss Adjustment Expenses December 31, 2018 Insurance segment $ 315,363 $ 2,031,140 $ 7,947,772 Reinsurance segment 159,150 630,435 3,425,751 Other — — 386,329 Total Underwriting 474,513 2,661,575 11,759,852 Program services — 949,453 2,516,627 Total $ 474,513 $ 3,611,028 $ 14,276,479 December 31, 2017 Insurance segment $ 286,780 $ 1,855,331 $ 7,711,510 Reinsurance segment 178,789 690,565 3,248,070 Other — — 429,270 Total Underwriting 465,569 2,545,896 11,388,850 Program services — 762,883 2,195,431 Total $ 465,569 $ 3,308,779 $ 13,584,281 |
Summary Of Segment Earned Premiums By Product | The following table summarizes earned premiums by major product grouping. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Insurance segment: General liability $ 889,543 $ 764,956 $ 675,199 Professional liability 701,867 628,878 600,607 Property 369,116 365,513 357,320 Marine and energy 376,747 312,282 277,608 Personal lines 374,543 382,761 374,175 Programs 288,398 273,954 263,783 Workers compensation 329,690 319,679 301,126 Other products 454,035 266,010 179,026 Total Insurance 3,783,939 3,314,033 3,028,844 Reinsurance segment: Property 233,195 321,178 288,771 Casualty 417,601 351,457 327,383 Auto 12,422 28,700 65,363 Other products 265,356 232,779 154,747 Total Reinsurance 928,574 934,114 836,264 Other (453 ) (169 ) 762 Total earned premiums $ 4,712,060 $ 4,247,978 $ 3,865,870 |
Summary of Gross Written Premiums by Country [Table Text Block] | The following table summarizes the Company's gross written premiums by country. Gross written premiums are attributed to individual countries based upon location of risk or cedent. Years Ended December 31, (dollars in thousands) 2018 % of Total 2017 % of Total 2016 % of Total United States $ 4,587,486 79 % $ 4,163,753 79 % $ 3,691,840 77 % United Kingdom 471,818 8 374,941 7 358,348 7 Canada 127,546 2 132,018 3 125,444 3 Other countries 612,146 11 582,395 11 621,013 13 Total Underwriting 5,798,996 100 % 5,253,107 100 % 4,796,645 100 % United States - Program services 2,065,473 253,853 — Total $ 7,864,469 $ 5,506,960 $ 4,796,645 |
Reconciliation Of Segment Assets To The Company's Consolidated Balance Sheets | The following table reconciles segment assets to the Company's consolidated balance sheets. December 31, (dollars in thousands) 2018 2017 2016 Segment assets: Investing $ 19,100,790 $ 20,317,160 $ 19,029,584 Underwriting 6,451,984 6,828,048 5,397,696 Markel Ventures 2,124,506 1,900,728 1,206,223 Total segment assets 27,677,280 29,045,936 25,633,503 Other operations 5,628,983 3,759,080 241,796 Total assets $ 33,306,263 $ 32,805,016 $ 25,875,299 |
Products, Services and Other _2
Products, Services and Other Revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule Of Revenues From Contracts With Customers By Type | The following table disaggregates revenues from contracts with customers by type, all of which are included in products revenues and services and other revenues on the consolidated statements of income (loss) and comprehensive income (loss). Years Ended December 31, 2018 2017 2016 (dollars in thousands) Markel Ventures Other Total Markel Ventures Other Total Markel Ventures Other Total Products $ 1,452,332 $ — $ 1,452,332 $ 902,739 $ — $ 902,739 $ 843,140 $ — $ 843,140 Services 367,572 33,236 400,808 339,430 34,746 374,176 288,726 34,984 323,710 Investment management — 91,527 91,527 — 28,740 28,740 — 56,455 56,455 Total revenues from contracts with customers 1,819,904 124,763 1,944,667 1,242,169 63,486 1,305,655 1,131,866 91,439 1,223,305 Program services — 94,118 94,118 — 14,487 14,487 — — — Other 92,161 1,660 93,821 91,111 2,022 93,133 82,583 1,891 84,474 Total $ 1,912,065 $ 220,541 $ 2,132,606 $ 1,333,280 $ 79,995 $ 1,413,275 $ 1,214,449 $ 93,330 $ 1,307,779 |
Receivables And Customer Deposits Related To Contracts With Customers | The following table presents receivables and customer deposits related to our contracts with customers. (dollars in thousands) December 31, 2018 December 31, 2017 Receivables $ 247,532 $ 176,865 Customer deposits $ 48,238 $ 61,546 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plan [Abstract] | |
Funded Status Of The Terra Nova Pension Plan | The following table summarizes the funded status of the Terra Nova Pension Plan and the amounts recognized on the accompanying consolidated balance sheets of the Company. Years Ended December 31, (dollars in thousands) 2018 2017 Change in projected benefit obligation: Projected benefit obligation at beginning of period $ 199,117 $ 178,618 Interest cost 4,815 5,016 Benefits paid (8,045 ) (5,644 ) Actuarial gain (loss) (15,853 ) 4,985 Effect of foreign currency rate changes (8,537 ) 16,142 Projected benefit obligation at end of year $ 171,497 $ 199,117 Change in plan assets: Fair value of plan assets at beginning of period $ 206,570 $ 175,644 Actual gain (loss) on plan assets (5,683 ) 16,902 Employer contributions 3,368 3,393 Benefits paid (8,045 ) (5,644 ) Effect of foreign currency rate changes (9,246 ) 16,275 Fair value of plan assets at end of year $ 186,964 $ 206,570 Funded status of the plan $ 15,467 $ 7,453 Net actuarial pension loss $ 74,604 $ 77,567 |
Schedule of Defined Benefit Plan Amounts Recognized in Accumulated Other Comprehensive Income | The following table presents the changes in plan assets and projected benefit obligation recognized in accumulated other comprehensive income. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Net actuarial gain (loss) $ — $ 3,728 $ (25,243 ) Amortization of net actuarial loss 2,963 3,815 1,951 Tax benefit (expense) (622 ) (1,284 ) 4,192 Total other comprehensive income (loss) $ 2,341 $ 6,259 $ (19,100 ) |
Schedule Of Net Periodic Benefit Income And Weighted Average Assumptions | The following table summarizes the components of net periodic benefit income (loss) and the weighted average assumptions for the Terra Nova Pension Plan. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Components of net periodic benefit income (loss): Interest cost $ 4,815 $ 5,016 $ 6,113 Expected return on plan assets (8,782 ) (8,189 ) (9,124 ) Amortization of net actuarial pension loss 2,963 3,815 1,951 Net periodic benefit income (loss) $ (1,004 ) $ 642 $ (1,060 ) Weighted average assumptions as of December 31: Discount rate 3.0 % 2.6 % 2.7 % Expected return on plan assets 4.5 % 4.5 % 4.5 % Rate of compensation increase 3.0 % 3.0 % 3.0 % |
Summary Of Fair Value Of Plan Assets | The following table summarizes the fair value of plan assets as of December 31, 2018 and 2017 . December 31, (dollars in thousands) 2018 2017 Plan assets: Fixed maturity index funds $ 102,047 $ 110,936 Equity security index funds 84,909 95,452 Cash and cash equivalents 8 182 Total $ 186,964 $ 206,570 |
Markel Corporation (Parent Co_2
Markel Corporation (Parent Company Only) Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule Of Condensed Balance Sheets | CONDENSED BALANCE SHEETS December 31, 2018 2017 (dollars in thousands) ASSETS Investments, at estimated fair value: Fixed maturities, available-for-sale (amortized cost of $717,666 in 2018 and $533,183 in 2017) $ 717,681 $ 532,438 Equity securities, available-for-sale (cost of $402,694 in 2017) — 646,060 Equity securities (cost of $1,117,363 in 2018) (1) 1,175,120 — Short-term investments, available-for-sale (estimated fair value approximates cost) 451,499 1,159,323 Total Investments 2,344,300 2,337,821 Cash and cash equivalents 263,043 349,347 Restricted cash and cash equivalents 3,177 1,419 Receivables 19,295 18,684 Investments in consolidated subsidiaries 10,697,605 9,510,215 Notes receivable from subsidiaries 160,111 140,110 Income taxes receivable 21,174 5,704 Other assets 135,722 121,233 Total Assets $ 13,644,427 $ 12,484,533 LIABILITIES AND SHAREHOLDERS' EQUITY Senior long-term debt $ 2,539,389 $ 2,537,331 Notes payable to subsidiaries (2) 1,895,000 285,000 Net deferred tax liability 64,564 84,507 Other liabilities 64,820 73,547 Total Liabilities 4,563,773 2,980,385 Total Shareholders' Equity 9,080,654 9,504,148 Total Liabilities and Shareholders' Equity $ 13,644,427 $ 12,484,533 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. (2) In December 2018, Markel Corporation purchased Markel Global Reinsurance Company, an indirectly owned subsidiary of Markel Corporation, from Alterra USA Holdings Limited, another indirectly owned subsidiary of Markel Corporation, by issuing a $1.4 billion note payable to subsidiary. |
Schedule Of Condensed Statements Of Income And Comprehensive Income | CONDENSED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) Years Ended December 31, 2018 2017 2016 (dollars in thousands) REVENUES Net investment income $ 32,631 $ 21,076 $ 9,561 Dividends on common stock of consolidated subsidiaries 749,171 895,920 349,622 Net investment gains (losses): Net realized investment gains (losses), including other-than-temporary impairment losses (3,341 ) 3,383 1,068 Change in fair value of equity securities (1) (110,356 ) — — Net investment gains (losses) (113,697 ) 3,383 1,068 Total Revenues 668,105 920,379 360,251 EXPENSES Services and other expenses 6,532 11,708 13,076 Interest expense 145,681 122,151 116,013 Net foreign exchange gains (3,391 ) — — Loss on early extinguishment of debt — — 44,100 Total Expenses 148,822 133,859 173,189 Income Before Equity in Undistributed Earnings of Consolidated Subsidiaries and Income Taxes 519,283 786,520 187,062 Equity in undistributed earnings of consolidated subsidiaries (696,045 ) (469,365 ) 196,615 Income tax benefit (48,582 ) (78,114 ) (72,012 ) Net Income (Loss) to Shareholders $ (128,180 ) $ 395,269 $ 455,689 OTHER COMPREHENSIVE INCOME (LOSS) TO SHAREHOLDERS Change in net unrealized gains on available-for-sale investments, net of taxes: Net holding gains (losses) arising during the period $ (1,492 ) $ 52,277 $ 37,045 Consolidated subsidiaries' net holding gains (losses) arising during the period (239,833 ) 735,062 238,616 Reclassification adjustments for net gains (losses) included in net income (loss) to shareholders 2,564 (1,513 ) (523 ) Consolidated subsidiaries' reclassification adjustments for net gains included in net income (loss) to shareholders 5,285 (22,783 ) (32,970 ) Change in net unrealized gains on available-for-sale investments, net of taxes (233,476 ) 763,043 242,168 Change in foreign currency translation adjustments, net of taxes — (2,260 ) (1,326 ) Consolidated subsidiaries' change in foreign currency translation adjustments, net of taxes (16,455 ) 12,663 (10,384 ) Consolidated subsidiaries' change in net actuarial pension loss, net of taxes 2,341 6,259 (19,100 ) Total Other Comprehensive Income (Loss) to Shareholders (247,590 ) 779,705 211,358 Comprehensive Income (Loss) to Shareholders $ (375,770 ) $ 1,174,974 $ 667,047 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. |
Schedule Of Condensed Statements Of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2018 2017 2016 (dollars in thousands) OPERATING ACTIVITIES Net income (loss) to shareholders $ (128,180 ) $ 395,269 $ 455,689 Adjustments to reconcile net income (loss) to shareholders to net cash provided (used) by operating activities 3,637 (166,132 ) (120,564 ) Net Cash Provided (Used) By Operating Activities (124,543 ) 229,137 335,125 INVESTING ACTIVITIES Proceeds from sales of fixed maturities and equity securities 204,478 20,562 1,831 Proceeds from maturities, calls and prepayments of fixed maturities 34,560 64,705 11,960 Cost of fixed maturities and equity securities purchased (26,336 ) (72,910 ) (29,110 ) Net change in short-term investments 930,876 649,181 (731,389 ) Return of capital from subsidiaries 12,712 45,225 21,021 Decrease (increase) in notes receivable due from subsidiaries (20,000 ) (58 ) 92,530 Capital contributions to subsidiaries (103,133 ) (270,623 ) — Acquisitions, net of cash acquired (972,619 ) (1,153,683 ) — Cost of equity method investments (5,117 ) (10,633 ) (3,100 ) Additions to property and equipment (3,191 ) — (584 ) Other (5,261 ) 6,972 (3,207 ) Net Cash Provided (Used) By Investing Activities 46,969 (721,262 ) (640,048 ) FINANCING ACTIVITIES Additions to senior long-term debt — 592,923 493,149 Increase in notes payable to subsidiaries 47,105 — — Repayment and retirement of senior long-term debt — — (183,343 ) Premiums and fees related to early extinguishment of debt — — (43,691 ) Repurchases of common stock (54,007 ) (110,838 ) (51,142 ) Other (70 ) (9,848 ) (337 ) Net Cash Provided (Used) By Financing Activities (6,972 ) 472,237 214,636 Decrease in cash, cash equivalents, restricted cash and restricted cash equivalents (84,546 ) (19,888 ) (90,287 ) Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year 350,766 370,654 460,941 CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS AT END OF YEAR $ 266,220 $ 350,766 $ 370,654 |
Quarterly Financial Informati_2
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results Of Consolidated Operations | The following table presents the unaudited quarterly results of consolidated operations for 2018 , 2017 and 2016 . Quarters Ended (dollars in thousands, except per share amounts) Mar. 31 June 30 Sept. 30 Dec. 31 2018 Operating revenues $ 1,575,471 $ 1,987,013 $ 2,235,949 $ 1,042,852 Net income (loss) (1) (65,594 ) 279,587 409,028 (753,374 ) Net income (loss) to shareholders (1) (64,306 ) 278,231 409,438 (751,543 ) Comprehensive income (loss) to shareholders (174,839 ) 164,336 315,106 (680,373 ) Net income (loss) per share: Basic $ (4.25 ) $ 20.01 $ 28.56 $ (53.88 ) Diluted (4.25 ) 19.97 28.50 (53.88 ) 2017 Operating revenues $ 1,411,751 $ 1,481,493 $ 1,506,148 $ 1,662,267 Net income (loss) (1) 71,040 151,427 (261,035 ) 439,326 Net income (loss) to shareholders (1) 69,869 149,660 (259,141 ) 434,881 Comprehensive income (loss) to shareholders 223,239 342,357 (19,869 ) 629,247 Net income (loss) per share: Basic $ 3.91 $ 10.34 $ (18.82 ) $ 30.48 Diluted 3.90 10.31 (18.82 ) 30.39 2016 Operating revenues $ 1,376,182 $ 1,375,937 $ 1,431,282 $ 1,428,625 Net income (1) 163,646 80,673 83,421 132,703 Net income to shareholders (1) 160,370 78,797 83,796 132,726 Comprehensive income (loss) to shareholders 396,994 209,942 89,161 (29,050 ) Net income per share: Basic $ 11.21 $ 5.44 $ 5.62 $ 9.14 Diluted 11.15 5.41 5.60 9.11 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Deferred policy acquisition cost amortization period | 1 year | ||
Tax benefit greater than 50% | 50.00% | ||
Insurance premiums revenue recognition period | 1 year | ||
Stock-based compensation expense, net of taxes | $ 13 | $ 11.9 | $ 14.3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Cash and Cash Equivalents) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Maximum [Member] | Cash And Cash Equivalents [Member] | |
Cash and Cash Equivalents [Line Items] | |
Investment maturity period | 90 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Goodwill and Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, estimated useful life | 5 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, estimated useful life | 20 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 10 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 40 years |
Land Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 7 years |
Land Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 40 years |
Furniture and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Furniture and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 10 years |
Other Property And Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Other Property And Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 25 years |
Summary Of Significant Accoun_7
Summary Of Significant Accounting Policies (Recent Accounting Pronouncements) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred Tax Liabilities, Other Comprehensive Income | $ 590,250 | $ 603,523 |
Operating Leases, Future Minimum Payments Due | 305,907 | |
Accounting Standards Update 2014-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accumulated Other Comprehensive Income (Loss) | 300 | |
Accounting Standards Update 2016-01 [Member] | Equity Securities [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accumulated Other Comprehensive Income (Loss) | (2,600,000) | |
Deferred Tax Liabilities, Other Comprehensive Income | 684,400 | |
Accounting Standards Update 2018-02 [Domain] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Retained Earnings, Unappropriated | 402,900 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | 250,000 | |
Operating Lease, Liability | $ 275,000 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 14, 2018 | Oct. 01, 2018 | Nov. 17, 2017 | Aug. 31, 2017 | Apr. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||||
Definite-lived intangible assets, weighted-average amortization period | 15 years | |||||||
Agent Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Definite-lived intangible assets, weighted-average amortization period | 12 years | |||||||
Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Definite-lived intangible assets, weighted-average amortization period | 16 years | |||||||
Trade Names [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Definite-lived intangible assets, weighted-average amortization period | 15 years | |||||||
Other Intangible Assets [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Definite-lived intangible assets, weighted-average amortization period | 5 years | |||||||
Investment Management Agreements [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Definite-lived intangible assets, weighted-average amortization period | 16 years | |||||||
Brahmin [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total purchase consideration | $ 193,800 | |||||||
Cash consideration | 173,300 | |||||||
Goodwill recognized | 72,900 | |||||||
Intangible assets | $ 81,300 | |||||||
Percentage acquired | 90.00% | |||||||
Non-controlling interests | $ 19,600 | |||||||
Brahmin [Member] | Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | $ 45,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 16 years | |||||||
Brahmin [Member] | Trade Names [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | $ 35,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 16 years | |||||||
Brahmin [Member] | Other Intangible Assets [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | $ 1,300 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 8 years | |||||||
Nephila Holdings Limited [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total purchase consideration | $ 972,600 | |||||||
Cash consideration | 972,600 | |||||||
Goodwill recognized | 474,900 | |||||||
Goodwill, tax deductible | 0 | |||||||
Intangible assets | $ 516,800 | |||||||
Percentage acquired | 100.00% | |||||||
Non-controlling interests | $ 23,400 | |||||||
Nephila Holdings Limited [Member] | Trade Names [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | $ 22,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 14 years | |||||||
Nephila Holdings Limited [Member] | Investment Management Agreements [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | $ 441,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 16 years | |||||||
Nephila Holdings Limited [Member] | Broker Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | $ 31,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 12 years | |||||||
Nephila Holdings Limited [Member] | Technology-Based Intangible Assets [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | $ 22,800 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 6 years | |||||||
SureTec Financial Corp [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total purchase consideration | $ 246,900 | |||||||
Cash consideration | 225,600 | |||||||
Goodwill recognized | 70,400 | |||||||
Goodwill, tax deductible | 0 | |||||||
Intangible assets | 103,000 | |||||||
SureTec Financial Corp [Member] | Agent Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | $ 92,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 15 years | |||||||
Costa Farms [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total purchase consideration | $ 417,200 | |||||||
Cash consideration | 387,900 | |||||||
Payment Of Contingent Consideration | 29,300 | |||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 19,000 | |||||||
Goodwill recognized | 186,200 | |||||||
Intangible assets | $ 192,000 | |||||||
Percentage acquired | 81.00% | |||||||
Non-controlling interests | $ 66,600 | |||||||
Costa Farms [Member] | Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | $ 161,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 17 years | |||||||
Costa Farms [Member] | Trade Names [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | $ 31,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 9 years | |||||||
State National Companies, Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total purchase consideration | $ 918,800 | |||||||
Cash consideration | 918,800 | |||||||
Goodwill recognized | 379,150 | $ 379,200 | ||||||
Goodwill, tax deductible | 0 | |||||||
Intangible assets | $ 370,500 | |||||||
Finite-lived intangible assets | $ 338,500 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 13 years | |||||||
Percentage acquired | 100.00% | |||||||
Cash State National stockholders will receive for each outstanding share of State National common stock | $ 21 | |||||||
Unpaid losses and loss adjustment expenses acquired, adjustment to fair value | $ 64,500 | |||||||
Unpaid losses and loss adjustment expenses, weighted average amortization period, years | 3 years | |||||||
Unpaid losses and loss adjustment expenses, unamortized fair value adjustment | $ 35,300 | $ 57,700 | ||||||
Deferred ceding fees acquired, adjustment to fair value | $ 28,300 | |||||||
Deferred ceding fees, weighted average amortization period, years | 1 year | |||||||
Deferred ceding fees, unamortized fair value adjustment | $ 0 | $ 19,300 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 32,000 | |||||||
State National Companies, Inc. [Member] | Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | $ 289,000 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 13 years | |||||||
State National Companies, Inc. [Member] | Trade Names [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-lived intangible assets | $ 22,500 | |||||||
Definite-lived intangible assets, weighted-average amortization period | 13 years |
Acquisitions (Summary Of Fair V
Acquisitions (Summary Of Fair Value Of Assets Acquired And Liabilities Assumed) (Details) - State National Companies, Inc. [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Nov. 17, 2017 |
ASSETS | ||
Investments | $ 395,940 | |
Cash and cash equivalents | 77,302 | |
Restricted cash and cash equivalents | 25,545 | |
Receivables | 147,256 | |
Prepaid reinsurance premiums | 808,331 | |
Reinsurance recoverables on paid and unpaid losses | 2,075,734 | |
Other assets | 83,721 | |
LIABILITIES | ||
Unpaid losses and loss adjustment expenses | 2,086,621 | |
Unearned premiums | 825,529 | |
Payables to insurance and reinsurance companies | 122,203 | |
Senior long-term debt and other debt | 44,500 | |
Other liabilities | 365,826 | |
Net assets | 169,150 | |
Goodwill | $ 379,200 | 379,150 |
Intangible assets | 370,500 | |
Acquisition date fair value | $ 918,800 |
Acquisitions (Summary Of Net In
Acquisitions (Summary Of Net Intangible Assets Acquired) (Details) - USD ($) $ in Thousands | Nov. 17, 2017 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [3] | Dec. 31, 2018 | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | |||||||||
Economic useful lives of finite-lived intangible assets, years | 15 years | ||||||||
Amortization (from the Acquisition Date through December 31, 2017) | $ 115,930 | [1] | $ 80,758 | [2] | $ 68,533 | ||||
Net intangible assets as of December 31, 2017 | $ 1,726,196 | $ 1,355,681 | $ 1,726,196 | ||||||
Customer Relationships [Member] | |||||||||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | |||||||||
Economic useful lives of finite-lived intangible assets, years | 16 years | ||||||||
Trade Names [Member] | |||||||||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | |||||||||
Economic useful lives of finite-lived intangible assets, years | 15 years | ||||||||
Technology [Member] | |||||||||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | |||||||||
Economic useful lives of finite-lived intangible assets, years | 6 years | ||||||||
State National Companies, Inc. [Member] | |||||||||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | |||||||||
Finite-lived intangible assets | $ 338,500 | ||||||||
Indefinite-lived intangible assets | $ 32,000 | ||||||||
Economic useful lives of finite-lived intangible assets, years | 13 years | ||||||||
Intangible assets, before amortization, as of the Acquisition Date | $ 370,500 | ||||||||
Amortization (from the Acquisition Date through December 31, 2017) | 32,336 | ||||||||
Net intangible assets as of December 31, 2017 | $ 338,164 | $ 338,164 | |||||||
State National Companies, Inc. [Member] | Insurance Licenses [Member] | |||||||||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | |||||||||
Indefinite-lived intangible assets | $ 32,000 | ||||||||
Economic useful lives of indefinite-lived intangible assets, years | Indefinite | ||||||||
State National Companies, Inc. [Member] | Customer Relationships [Member] | |||||||||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | |||||||||
Finite-lived intangible assets | $ 289,000 | ||||||||
Economic useful lives of finite-lived intangible assets, years | 13 years | ||||||||
State National Companies, Inc. [Member] | Trade Names [Member] | |||||||||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | |||||||||
Finite-lived intangible assets | $ 22,500 | ||||||||
Economic useful lives of finite-lived intangible assets, years | 13 years | ||||||||
State National Companies, Inc. [Member] | Technology [Member] | |||||||||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | |||||||||
Finite-lived intangible assets | $ 27,000 | ||||||||
Economic useful lives of finite-lived intangible assets, years | 9 years | ||||||||
[1] | Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. | ||||||||
[2] | Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. | ||||||||
[3] | Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)securities | Dec. 31, 2017USD ($)securities | Dec. 31, 2016USD ($) | ||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale fixed maturity securities in unrealized loss position, number of positions | securities | 1,005 | |||
Available-for-sale securities in unrealized loss position, number of positions | securities | 739 | |||
Available-for-sale fixed maturity securities in unrealized loss position, number of positions, 12 months or longer | securities | 541 | |||
Available-for-sale fixed maturity securities, estimated fair value | $ 4,594,664 | |||
Available-for-sale securities, estimated fair value | $ 2,767,652 | |||
Available-for-sale fixed maturity securities, gross unrealized holding losses | (133,989) | |||
Available-for-sale securities, gross unrealized holding losses | $ (57,348) | |||
Number of available-for-sale securities positions in a continuous unrealized loss position for one year or longer at period end | securities | 272 | |||
Available-for-sale fixed maturity securities, estimated fair value, 12 months or longer | 1,983,912 | |||
Available-for-sale securities, estimated fair value, 12 months or longer | $ 1,481,341 | |||
Available-for-sale fixed maturity securities, gross unrealized holding losses, 12 months or longer | $ (77,504) | |||
Available-for-sale securities, gross unrealized holding losses, 12 months or longer | (34,348) | |||
Estimated average duration of fixed maturities | 6 years 1 month | |||
Cumulative credit loss recognized in income | $ 0 | $ 0 | $ 10,700 | |
Percentage threshold of shareholders' equity used to define concentration of investments | 10.00% | 10.00% | ||
Ten largest equity holdings | $ 2,300,000 | |||
Ten largest equity holdings, percentage of equity portfolio | 41.00% | |||
Investments in property and casualty | $ 1,000,000 | |||
Investments in property and casualty, percentage of equity portfolio | 18.00% | |||
Berkshire Hathaway Inc. [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Investments in property and casualty | $ 645,900 | |||
Fixed Maturities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale fixed maturity securities in unrealized loss position, number of positions, 12 months or longer | securities | 258 | |||
Available-for-sale fixed maturity securities, estimated fair value | 4,397,021 | $ 2,246,614 | ||
Available-for-sale fixed maturity securities, gross unrealized holding losses | (131,215) | (37,344) | ||
Available-for-sale fixed maturity securities, estimated fair value, 12 months or longer | 1,983,912 | 1,468,807 | ||
Available-for-sale fixed maturity securities, gross unrealized holding losses, 12 months or longer | $ (77,504) | (31,054) | ||
Equity Securities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities, estimated fair value | [1] | 151,934 | ||
Available-for-sale securities, gross unrealized holding losses | [1] | $ (19,935) | ||
Number of available-for-sale securities positions in a continuous unrealized loss position for one year or longer at period end | securities | 14 | |||
Available-for-sale securities, estimated fair value, 12 months or longer | [1] | $ 12,534 | ||
Available-for-sale securities, gross unrealized holding losses, 12 months or longer | [1] | $ (3,294) | ||
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See note 1. |
Investments (Available-For-Sale
Investments (Available-For-Sale Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity investments, amortized cost | $ 9,950,773 | $ 9,551,153 | |
Available-for-sale investments, amortized cost | 11,030,800 | 14,379,831 | |
Available-for-sale investments, gross unrealized holding gains | 224,073 | 3,747,008 | |
Available-for-sale investments, gross unrealized holding losses | (133,989) | (57,348) | |
Available-for-sale fixed maturity investments, estimated fair value | 10,043,188 | 9,940,670 | |
Available-for-sale investments, estimated fair value | 11,120,884 | 18,069,491 | |
U.S. Treasury Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity investments, amortized cost | 248,286 | 162,378 | |
Available-for-sale fixed maturity investments, gross unrealized holding gains | 308 | 54 | |
Available-for-sale fixed maturity investments, gross unrealized holding losses | (1,952) | (1,819) | |
Available-for-sale fixed maturity investments, estimated fair value | 246,642 | 160,613 | |
U.S. Government-Sponsored Enterprises [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity investments, amortized cost | 357,765 | 352,455 | |
Available-for-sale fixed maturity investments, gross unrealized holding gains | 5,671 | 11,883 | |
Available-for-sale fixed maturity investments, gross unrealized holding losses | (4,114) | (818) | |
Available-for-sale fixed maturity investments, estimated fair value | 359,322 | 363,520 | |
Obligations Of States, Municipalities And Political Subdivisions [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity investments, amortized cost | 4,285,068 | 4,381,358 | |
Available-for-sale fixed maturity investments, gross unrealized holding gains | 96,730 | 193,120 | |
Available-for-sale fixed maturity investments, gross unrealized holding losses | (28,868) | (7,916) | |
Available-for-sale fixed maturity investments, estimated fair value | 4,352,930 | 4,566,562 | |
Foreign Governments [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity investments, amortized cost | 1,482,826 | 1,341,628 | |
Available-for-sale fixed maturity investments, gross unrealized holding gains | 98,356 | 150,010 | |
Available-for-sale fixed maturity investments, gross unrealized holding losses | (21,578) | (2,410) | |
Available-for-sale fixed maturity investments, estimated fair value | 1,559,604 | 1,489,228 | |
Commercial Mortgage-Backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity investments, amortized cost | 1,691,572 | 1,244,777 | |
Available-for-sale fixed maturity investments, gross unrealized holding gains | 3,154 | 6,108 | |
Available-for-sale fixed maturity investments, gross unrealized holding losses | (44,527) | (16,559) | |
Available-for-sale fixed maturity investments, estimated fair value | 1,650,199 | 1,234,326 | |
Residential Mortgage-Backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity investments, amortized cost | 886,501 | 846,916 | |
Available-for-sale fixed maturity investments, gross unrealized holding gains | 6,170 | 14,115 | |
Available-for-sale fixed maturity investments, gross unrealized holding losses | (12,499) | (4,863) | |
Available-for-sale fixed maturity investments, estimated fair value | 880,172 | 856,168 | |
Asset-Backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity investments, amortized cost | 19,614 | 34,942 | |
Available-for-sale fixed maturity investments, gross unrealized holding gains | 7 | 8 | |
Available-for-sale fixed maturity investments, gross unrealized holding losses | (213) | (222) | |
Available-for-sale fixed maturity investments, estimated fair value | 19,408 | 34,728 | |
Corporate Bonds [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity investments, amortized cost | 979,141 | 1,186,699 | |
Available-for-sale fixed maturity investments, gross unrealized holding gains | 13,234 | 51,563 | |
Available-for-sale fixed maturity investments, gross unrealized holding losses | (17,464) | (2,737) | |
Available-for-sale fixed maturity investments, estimated fair value | 974,911 | 1,235,525 | |
Total Fixed Maturities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity investments, amortized cost | 9,950,773 | 9,551,153 | |
Available-for-sale fixed maturity investments, gross unrealized holding gains | 223,630 | 426,861 | |
Available-for-sale fixed maturity investments, gross unrealized holding losses | (131,215) | (37,344) | |
Available-for-sale fixed maturity investments, estimated fair value | 10,043,188 | 9,940,670 | |
Insurance, Banks And Other Financial Institutions [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale investments, amortized cost | [1] | 899,324 | |
Available-for-sale investments, gross unrealized holding gains | [1] | 1,209,162 | |
Available-for-sale investments, gross unrealized holding losses | [1] | (5,453) | |
Available-for-sale investments, estimated fair value | [1] | 2,103,033 | |
Industrial, Consumer And All Other [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale investments, amortized cost | [1] | 1,768,337 | |
Available-for-sale investments, gross unrealized holding gains | [1] | 2,110,959 | |
Available-for-sale investments, gross unrealized holding losses | [1] | (14,482) | |
Available-for-sale investments, estimated fair value | [1] | 3,864,814 | |
Total Equity Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale investments, amortized cost | [1] | 2,667,661 | |
Available-for-sale investments, gross unrealized holding gains | [1] | 3,320,121 | |
Available-for-sale investments, gross unrealized holding losses | [1] | (19,935) | |
Available-for-sale investments, estimated fair value | [1] | 5,967,847 | |
Short-Term Investments [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale investments, amortized cost | 1,080,027 | 2,161,017 | |
Available-for-sale investments, gross unrealized holding gains | 443 | 26 | |
Available-for-sale investments, gross unrealized holding losses | (2,774) | (69) | |
Available-for-sale investments, estimated fair value | $ 1,077,696 | $ 2,160,974 | |
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See note 1. |
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 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity securities, estimated fair value, less than 12 months | $ 2,610,752 | ||
Available-for-sale securities, estimated fair value, less than 12 months | $ 1,286,311 | ||
Available-for-sale fixed maturity securities, gross unrealized holding, less than 12 months | (56,485) | ||
Available-for-sale securities, gross unrealized holding losses, less than 12 months | (23,000) | ||
Available-for-sale fixed maturity securities, estimated fair value, 12 months or longer | 1,983,912 | ||
Available-for-sale securities, estimated fair value, 12 months or longer | 1,481,341 | ||
Available-for-sale fixed maturity securities, gross unrealized holding losses, 12 months or longer | (77,504) | ||
Available-for-sale securities, gross unrealized holding losses, 12 months or longer | (34,348) | ||
Available-for-sale fixed maturity securities, estimated fair value | 4,594,664 | ||
Available-for-sale securities, estimated fair value | 2,767,652 | ||
Available-for-sale fixed maturity securities, gross unrealized holding losses | (133,989) | ||
Available-for-sale securities, gross unrealized holding losses | (57,348) | ||
U.S. Treasury Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity securities, estimated fair value, less than 12 months | 2,922 | 78,756 | |
Available-for-sale fixed maturity securities, gross unrealized holding, less than 12 months | (83) | (659) | |
Available-for-sale fixed maturity securities, estimated fair value, 12 months or longer | 156,352 | 78,298 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses, 12 months or longer | (1,869) | (1,160) | |
Available-for-sale fixed maturity securities, estimated fair value | 159,274 | 157,054 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses | (1,952) | (1,819) | |
U.S. Government-Sponsored Enterprises [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity securities, estimated fair value, less than 12 months | 88,854 | 11,593 | |
Available-for-sale fixed maturity securities, gross unrealized holding, less than 12 months | (1,923) | (79) | |
Available-for-sale fixed maturity securities, estimated fair value, 12 months or longer | 96,337 | 89,194 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses, 12 months or longer | (2,191) | (739) | |
Available-for-sale fixed maturity securities, estimated fair value | 185,191 | 100,787 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses | (4,114) | (818) | |
Obligations Of States, Municipalities And Political Subdivisions [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity securities, estimated fair value, less than 12 months | 656,573 | 80,654 | |
Available-for-sale fixed maturity securities, gross unrealized holding, less than 12 months | (12,455) | (789) | |
Available-for-sale fixed maturity securities, estimated fair value, 12 months or longer | 453,736 | 404,814 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses, 12 months or longer | (16,413) | (7,127) | |
Available-for-sale fixed maturity securities, estimated fair value | 1,110,309 | 485,468 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses | (28,868) | (7,916) | |
Foreign Governments [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity securities, estimated fair value, less than 12 months | 419,764 | 31,752 | |
Available-for-sale fixed maturity securities, gross unrealized holding, less than 12 months | (14,461) | (452) | |
Available-for-sale fixed maturity securities, estimated fair value, 12 months or longer | 84,776 | 63,406 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses, 12 months or longer | (7,117) | (1,958) | |
Available-for-sale fixed maturity securities, estimated fair value | 504,540 | 95,158 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses | (21,578) | (2,410) | |
Commercial Mortgage-Backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity securities, estimated fair value, less than 12 months | 653,410 | 253,936 | |
Available-for-sale fixed maturity securities, gross unrealized holding, less than 12 months | (10,128) | (1,980) | |
Available-for-sale fixed maturity securities, estimated fair value, 12 months or longer | 709,971 | 481,216 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses, 12 months or longer | (34,399) | (14,579) | |
Available-for-sale fixed maturity securities, estimated fair value | 1,363,381 | 735,152 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses | (44,527) | (16,559) | |
Residential Mortgage-Backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity securities, estimated fair value, less than 12 months | 276,777 | 157,508 | |
Available-for-sale fixed maturity securities, gross unrealized holding, less than 12 months | (3,685) | (1,345) | |
Available-for-sale fixed maturity securities, estimated fair value, 12 months or longer | 242,949 | 148,960 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses, 12 months or longer | (8,814) | (3,518) | |
Available-for-sale fixed maturity securities, estimated fair value | 519,726 | 306,468 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses | (12,499) | (4,863) | |
Asset-Backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity securities, estimated fair value, less than 12 months | 1,645 | 14,263 | |
Available-for-sale fixed maturity securities, gross unrealized holding, less than 12 months | (11) | (123) | |
Available-for-sale fixed maturity securities, estimated fair value, 12 months or longer | 17,030 | 15,165 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses, 12 months or longer | (202) | (99) | |
Available-for-sale fixed maturity securities, estimated fair value | 18,675 | 29,428 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses | (213) | (222) | |
Corporate Bonds [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity securities, estimated fair value, less than 12 months | 313,164 | 149,345 | |
Available-for-sale fixed maturity securities, gross unrealized holding, less than 12 months | (10,965) | (863) | |
Available-for-sale fixed maturity securities, estimated fair value, 12 months or longer | 222,761 | 187,754 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses, 12 months or longer | (6,499) | (1,874) | |
Available-for-sale fixed maturity securities, estimated fair value | 535,925 | 337,099 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses | (17,464) | (2,737) | |
Total Fixed Maturities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity securities, estimated fair value, less than 12 months | 2,413,109 | 777,807 | |
Available-for-sale fixed maturity securities, gross unrealized holding, less than 12 months | (53,711) | (6,290) | |
Available-for-sale fixed maturity securities, estimated fair value, 12 months or longer | 1,983,912 | 1,468,807 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses, 12 months or longer | (77,504) | (31,054) | |
Available-for-sale fixed maturity securities, estimated fair value | 4,397,021 | 2,246,614 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses | (131,215) | (37,344) | |
Insurance, Banks And Other Financial Institutions [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities, estimated fair value, less than 12 months | [1] | 60,848 | |
Available-for-sale securities, gross unrealized holding losses, less than 12 months | [1] | (4,843) | |
Available-for-sale securities, estimated fair value, 12 months or longer | [1] | 1,291 | |
Available-for-sale securities, gross unrealized holding losses, 12 months or longer | [1] | (610) | |
Available-for-sale securities, estimated fair value | [1] | 62,139 | |
Available-for-sale securities, gross unrealized holding losses | [1] | (5,453) | |
Industrial, Consumer And All Other [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities, estimated fair value, less than 12 months | [1] | 78,552 | |
Available-for-sale securities, gross unrealized holding losses, less than 12 months | [1] | (11,798) | |
Available-for-sale securities, estimated fair value, 12 months or longer | [1] | 11,243 | |
Available-for-sale securities, gross unrealized holding losses, 12 months or longer | [1] | (2,684) | |
Available-for-sale securities, estimated fair value | [1] | 89,795 | |
Available-for-sale securities, gross unrealized holding losses | [1] | (14,482) | |
Total Equity Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities, estimated fair value, less than 12 months | [1] | 139,400 | |
Available-for-sale securities, gross unrealized holding losses, less than 12 months | [1] | (16,641) | |
Available-for-sale securities, estimated fair value, 12 months or longer | [1] | 12,534 | |
Available-for-sale securities, gross unrealized holding losses, 12 months or longer | [1] | (3,294) | |
Available-for-sale securities, estimated fair value | [1] | 151,934 | |
Available-for-sale securities, gross unrealized holding losses | [1] | (19,935) | |
Short-Term Investments [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale fixed maturity securities, estimated fair value, less than 12 months | 197,643 | 369,104 | |
Available-for-sale fixed maturity securities, gross unrealized holding, less than 12 months | (2,774) | (69) | |
Available-for-sale fixed maturity securities, estimated fair value, 12 months or longer | 0 | 0 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses, 12 months or longer | 0 | 0 | |
Available-for-sale fixed maturity securities, estimated fair value | 197,643 | 369,104 | |
Available-for-sale fixed maturity securities, gross unrealized holding losses | $ (2,774) | $ (69) | |
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See note 1. |
Investments (Schedule Of Amorti
Investments (Schedule Of Amortized Cost And Estimated Fair Value Of Fixed Maturities By Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, amortized cost | $ 377,745 | |
Due after one year through five years, amortized cost | 1,293,384 | |
Due after five years through ten years, amortized cost | 2,103,596 | |
Due after ten years, amortized cost | 3,578,361 | |
Amortized cost, sub-total | 7,353,086 | |
Fixed maturities, amortized cost | 9,950,773 | $ 9,551,153 |
Due in one year or less, estimated fair value | 376,564 | |
Due after one year through five years, estimated fair value | 1,298,995 | |
Due after five years through ten years, estimated fair value | 2,137,866 | |
Due after ten years, estimated fair value | 3,679,984 | |
Estimated fair value, sub-total | 7,493,409 | |
Available-for-sale fixed maturity investments, estimated fair value | 10,043,188 | 9,940,670 |
Commercial Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 1,691,572 | |
Fixed maturities, amortized cost | 1,691,572 | 1,244,777 |
Estimated fair value | 1,650,199 | |
Available-for-sale fixed maturity investments, estimated fair value | 1,650,199 | 1,234,326 |
Residential Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 886,501 | |
Fixed maturities, amortized cost | 886,501 | 846,916 |
Estimated fair value | 880,172 | |
Available-for-sale fixed maturity investments, estimated fair value | 880,172 | 856,168 |
Asset-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 19,614 | |
Fixed maturities, amortized cost | 19,614 | 34,942 |
Estimated fair value | 19,408 | |
Available-for-sale fixed maturity investments, estimated fair value | $ 19,408 | $ 34,728 |
Investments (Components Of Net
Investments (Components Of Net Investment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Municipal bonds (tax-exempt) | $ 80,016 | $ 87,768 | $ 88,654 |
Short-term investments, including overnight deposits | 48,765 | 26,772 | 11,177 |
Dividends on equity securities | 90,840 | 82,096 | 70,577 |
Income (loss) from equity method investments | (1,924) | 11,076 | 6,852 |
Other | 881 | (828) | 2,676 |
Total investment income | 450,965 | 422,740 | 390,437 |
Investment expenses | (16,750) | (17,031) | (17,207) |
Net investment income | 434,215 | 405,709 | 373,230 |
Taxable Municipal Bonds [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Taxable bonds | 73,058 | 70,771 | 65,749 |
Other Taxable Bonds [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Taxable bonds | $ 159,329 | $ 145,085 | $ 144,752 |
Investments (Net Investment Gai
Investments (Net Investment Gains (Losses) and Change in Net Unrealized Gains On Available-For-Sale Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Gain (Loss) on Securities [Line Items] | |||||||
Realized gains | $ 7,106 | $ 52,282 | $ 76,752 | ||||
Realized losses | 19,080 | 12,697 | 28,396 | ||||
Other-than-temporary impairment losses recognized in net income | 0 | (7,589) | (18,355) | ||||
Net realized investment gains (losses) | (11,974) | 39,585 | 48,356 | ||||
Change in fair value of equity securities sold during the period | [1] | 20,177 | 6,989 | (3,990) | |||
Change in fair value of equity securities held at the end of the period | [1] | (445,799) | (51,877) | 20,781 | |||
Change in fair value of equity securities | [1] | (425,622) | (44,888) | 16,791 | |||
Net investment gains (losses) | (437,596) | [2] | (5,303) | [3] | 65,147 | [4] | |
Change in net unrealized gains on investments included in other comprehensive income (loss) | (299,446) | 1,125,440 | 342,111 | ||||
Sales Of Fixed Maturities [Member] | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Realized gains | 4,221 | 5,525 | 5,160 | ||||
Realized losses | 5,768 | 1,983 | 704 | ||||
Sales Of Equity Securities [Member] | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Realized gains | [1] | 0 | 40,113 | 70,177 | |||
Realized losses | [1] | 0 | 1,830 | 6,988 | |||
Sales Of Short-Term Investments [Member] | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Realized gains | 1,604 | 0 | 0 | ||||
Realized losses | (10,545) | (699) | (522) | ||||
Other [Member] | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Realized gains | 1,281 | 6,644 | 1,415 | ||||
Realized losses | 2,767 | 596 | 1,827 | ||||
Fixed Maturities [Member] | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Change in net unrealized gains on investments included in other comprehensive income (loss) | (297,158) | 89,741 | (56,534) | ||||
Equity Securities [Member] | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Change in net unrealized gains on investments included in other comprehensive income (loss) | [1] | 0 | 1,035,793 | 398,752 | |||
Short-Term Investments [Member] | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Change in net unrealized gains on investments included in other comprehensive income (loss) | $ (2,288) | $ (94) | $ (107) | ||||
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. Prior to adopting ASU No. 2016-01, the Company recorded certain investments in equity securities at estimated fair value with changes in fair value recorded in net income. | ||||||
[2] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment losses within net income. Prior periods have not been restated to conform to the current presentation. See note 1. | ||||||
[3] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment losses within net income. Prior periods have not been restated to conform to the current presentation. See note 1. | ||||||
[4] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment gains within net income. Prior periods have not been restated to conform to the current presentation. See note 1. |
Investments (Summary Of Other-T
Investments (Summary Of Other-Than-Temporary Impairment Losses Recognized In Net Income And In Net Realized Investment Gains By Investment Type) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Other-than-temporary impairment losses recognized in net income | $ 0 | $ (7,589) | $ (18,355) |
Investments (Schedule Of Restri
Investments (Schedule Of Restricted Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Investments, available-for-sale | $ 4,781,566 | $ 4,672,073 |
Restricted cash and cash equivalents | 382,264 | 302,387 |
Total | $ 5,163,830 | $ 4,974,460 |
Investments Investments (Compon
Investments Investments (Components Of Restricted Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Components Of Restricted Assets [Line Items] | ||
Restricted assets | $ 5,163,830 | $ 4,974,460 |
Held In Trust Or On Deposit [Member] | ||
Components Of Restricted Assets [Line Items] | ||
Restricted assets | 4,780,613 | 4,624,998 |
Cash And Cash Equivalents And Securities Pledged As Collateral [Member] | ||
Components Of Restricted Assets [Line Items] | ||
Restricted assets | $ 383,217 | $ 349,462 |
Receivables (Components Of Rece
Receivables (Components Of Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Amounts receivable from agents, brokers and insureds | $ 1,327,549 | $ 1,281,366 |
Trade accounts receivable | 226,282 | 181,666 |
Notes Receivable | 40,375 | 528 |
Program services fees receivable | 24,787 | 22,767 |
Employee stock loans receivable (see note 12(c)) | 19,227 | 18,499 |
Investment management and incentive fees receivable | 16,744 | 5,796 |
Insurance proceeds receivable | 0 | 39,196 |
Other | 53,140 | 31,410 |
Receivables, gross | 1,708,104 | 1,581,228 |
Allowance for doubtful receivables | (15,578) | (13,775) |
Receivables | $ 1,692,526 | $ 1,567,453 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Amounts Of Policy Acquisition Costs Deferred And Amortized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $ 465,569 | $ 392,410 | $ 352,756 |
Policy acquisition costs deferred | 1,024,888 | 964,755 | 823,840 |
Amortization of policy acquisition costs | (1,009,303) | (894,353) | (782,221) |
Foreign currency movements | (6,641) | 2,757 | (1,965) |
Deferred policy acquisition costs | $ 474,513 | $ 465,569 | $ 392,410 |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs (Components Of Underwriting, Acquisition And Insurance Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |||
Amortization of policy acquisition costs | $ 1,009,303 | $ 894,353 | $ 782,221 |
Other operating expenses | 768,208 | 695,111 | 714,904 |
Underwriting, acquisition and insurance expenses | $ 1,777,511 | $ 1,589,464 | $ 1,497,125 |
Property And Equipment (Compone
Property And Equipment (Components Of Property And Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Land | $ 72,011 | $ 66,885 | |
Buildings | 137,095 | 119,729 | |
Leasehold improvements | 108,973 | 98,246 | |
Land improvements | 93,545 | 89,444 | |
Furniture and equipment | 392,060 | 341,450 | |
Other | 227,356 | 196,465 | |
Property and equipment, gross | 1,031,040 | 912,219 | |
Accumulated depreciation and amortization | (479,498) | (410,602) | |
Property and equipment | 551,542 | 501,617 | |
Depreciation and amortization expense of property and equipment | $ 80,900 | $ 71,600 | $ 64,800 |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Goodwill And Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 107,300 | |||||
Goodwill, Impairment Loss | 91,910 | $ 0 | $ (18,700) | |||
Carrying value following impairment charge | 2,237,975 | 1,777,464 | 1,142,248 | |||
Amortization of intangible assets | 115,930 | [1] | 80,758 | [2] | 68,533 | [3] |
Estimated amortization of intangible assets for 2019 | 140,300 | |||||
Estimated amortization of intangible assets for 2020 | 137,200 | |||||
Estimated amortization of intangible assets for 2021 | 133,500 | |||||
Estimated amortization of intangible assets for 2022 | 130,100 | |||||
Estimated amortization of intangible assets for 2023 | 128,400 | |||||
Indefinite-lived intangible assets | 92,400 | 88,200 | ||||
Intangible assets acquired during period | 608,300 | |||||
Amortizable intangible assets acquired | $ 604,100 | |||||
Definite-lived intangible assets, weighted-average amortization period | 15 years | |||||
Impairment of Goodwill and Intangible Assets | $ 199,198 | $ 0 | 18,723 | |||
Markel Ventures Operations [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets (Excluding Goodwill) | 14,900 | |||||
Goodwill, Impairment Loss | 18,700 | |||||
Markel Ventures Operations [Member] | Industrial Manufacturing [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Carrying value following impairment charge | $ 0 | |||||
Markel CATCo IM [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets (Excluding Goodwill) | 87,100 | |||||
Goodwill, Impairment Loss | 91,900 | |||||
Impairment of Goodwill and Intangible Assets | 179,000 | |||||
Intangible Assets, Net (Including Goodwill) | $ 0 | |||||
Investment Management Agreements [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Definite-lived intangible assets, weighted-average amortization period | 16 years | |||||
Customer Relationships [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Definite-lived intangible assets, weighted-average amortization period | 16 years | |||||
Trade Names [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Definite-lived intangible assets, weighted-average amortization period | 15 years | |||||
Agent Relationships [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Definite-lived intangible assets, weighted-average amortization period | 12 years | |||||
Technology [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Definite-lived intangible assets, weighted-average amortization period | 6 years | |||||
Other Intangible Assets [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Definite-lived intangible assets, weighted-average amortization period | 5 years | |||||
[1] | Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. | |||||
[2] | Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. | |||||
[3] | Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets (Components Of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Goodwill [Line Items] | ||||||
Goodwill, beginning balance | $ 1,777,464 | $ 1,142,248 | ||||
Acquisitions (see note 2) | 548,075 | 626,735 | ||||
Goodwill, Impairment Loss | 91,910 | 0 | $ (18,700) | |||
Foreign currency movements and other adjustments | 4,346 | 8,481 | ||||
Goodwill, ending balance | 2,237,975 | 1,777,464 | 1,142,248 | |||
Accumulated impairment losses | [1] | 139,200 | 47,300 | |||
Insurance [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, beginning balance | 771,821 | 672,763 | ||||
Acquisitions (see note 2) | 0 | 93,123 | ||||
Goodwill, Impairment Loss | 0 | |||||
Foreign currency movements and other adjustments | (1,637) | 5,935 | ||||
Goodwill, ending balance | 770,184 | 771,821 | 672,763 | |||
Reinsurance [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, beginning balance | 122,745 | 122,745 | ||||
Acquisitions (see note 2) | 0 | 0 | ||||
Goodwill, Impairment Loss | 0 | |||||
Foreign currency movements and other adjustments | 0 | 0 | ||||
Goodwill, ending balance | 122,745 | 122,745 | 122,745 | |||
Markel Ventures [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, beginning balance | 424,981 | 237,767 | ||||
Acquisitions (see note 2) | 73,174 | 186,194 | ||||
Goodwill, Impairment Loss | 0 | |||||
Foreign currency movements and other adjustments | (817) | 1,020 | ||||
Goodwill, ending balance | 497,338 | 424,981 | 237,767 | |||
Accumulated impairment losses | [1] | 47,300 | 47,340 | |||
Other [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, beginning balance | [2] | 457,917 | [1] | 108,973 | ||
Acquisitions (see note 2) | [2] | 474,901 | 347,418 | |||
Goodwill, Impairment Loss | [2] | 91,910 | ||||
Foreign currency movements and other adjustments | [2] | 6,800 | 1,526 | |||
Goodwill, ending balance | [2] | 847,708 | [1] | $ 457,917 | [1] | $ 108,973 |
Accumulated impairment losses | [1] | $ 91,900 | ||||
[1] | As of December 31, 2018, goodwill was net of accumulated impairment losses of $139.2 million, of which $91.9 million was in Other and $47.3 million was in Markel Ventures. As of December 31, 2017, goodwill was net of accumulated impairment losses of $47.3 million, all of which was included in Markel Ventures. | |||||
[2] | Amounts included in Other reflect the Company's operations that are not included in a reportable segment. |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets (Components Of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | $ 2,196,597 | $ 1,777,015 |
Intangible assets, accumulated amortization | (470,401) | (421,334) |
Customer Relationships [Member] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 953,739 | 941,477 |
Intangible assets, accumulated amortization | (204,261) | (161,797) |
Investment Management Agreements [Member] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 441,000 | 98,000 |
Intangible assets, accumulated amortization | 0 | (14,000) |
Broker Relationships [Member] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 204,367 | 184,959 |
Intangible assets, accumulated amortization | (78,559) | (69,677) |
Trade Names [Member] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 193,154 | 164,335 |
Intangible assets, accumulated amortization | (62,827) | (59,660) |
Technology [Member] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 109,208 | 94,712 |
Intangible assets, accumulated amortization | (47,090) | (44,489) |
Agent Relationships [Member] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 92,000 | 92,000 |
Intangible assets, accumulated amortization | (10,175) | (4,042) |
Insurance Licenses [Member] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 74,635 | 70,385 |
Intangible assets, accumulated amortization | 0 | 0 |
Renewal Rights [Domain] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 21,053 | 19,514 |
Intangible assets, accumulated amortization | (18,272) | (17,681) |
Other [Member] | ||
Schedule of Indefinite-Lived And Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 107,441 | 111,633 |
Intangible assets, accumulated amortization | $ (49,217) | $ (49,988) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | |||
Unrecognized Tax Benefits | $ 0 | ||
Income tax payments | 63,100,000 | $ 70,200,000 | $ 142,200,000 |
Income taxes payable | 83,700,000 | 51,300,000 | |
Income taxes receivable | 49,300,000 | 64,300,000 | |
One-time tax benefit as a result of the TCJA | 5,699,000 | 339,899,000 | 0 |
Tax credit carryforwards | $ 39,877,000 | 48,938,000 | |
Tax credit, expiration date | Dec. 31, 2028 | ||
Net operating loss carryforwards | $ 40,700,000 | ||
Estimated gross deferred tax assets including net operating losses realized through generating taxable income or reversal of existing temporary differences attributable to gross deferred tax liabilities | 449,100,000 | ||
Valuation allowance | (36,286,000) | (25,225,000) | |
Change in Tax Status of UK Subsidiaries One-time Tax Expense | $ (103,281,000) | $ 0 | $ 0 |
Earliest Tax Year [Member] | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforwards, expiration date | Dec. 31, 2028 | ||
Latest Tax Year [Member] | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforwards, expiration date | Dec. 31, 2037 | ||
Certain Branch Operations In Europe And Wholly Owned Subsidiary In Brazil [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryforwards | $ 121,700,000 | ||
Certain Branch Operations In Europe And Wholly Owned Subsidiary In Brazil [Member] | Earliest Tax Year [Member] | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforwards, expiration date | Dec. 31, 2020 | ||
Certain Branch Operations In Europe And Wholly Owned Subsidiary In Brazil [Member] | Latest Tax Year [Member] | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforwards, expiration date | Dec. 31, 2027 | ||
Certain Branch Operations In Europe And Wholly Owned Subsidiary In Brazil [Member] | Subject To Expiration [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryforwards | $ 31,400,000 |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $ 99,373 | $ 337,704 | $ 288,905 |
Foreign operations | (107,228) | (250,409) | 341,015 |
Income (Loss) Before Income Taxes | $ (7,855) | $ 87,295 | $ 629,920 |
Income Taxes (Components Of I_2
Income Taxes (Components Of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic, current | $ 77,936 | $ (19,255) | $ 57,916 |
Foreign, current | 41,833 | 29,882 | 48,203 |
Total current tax expense | 119,769 | 10,627 | 106,119 |
Domestic, deferred | (77,255) | (222,427) | 19,991 |
Foreign, deferred | 79,984 | (101,663) | 43,367 |
Total deferred tax expense (benefit) | 2,729 | (324,090) | 63,358 |
Income tax expense (benefit) | $ 122,498 | $ (313,463) | $ 169,477 |
Income Taxes (Reconciliations O
Income Taxes (Reconciliations Of United States Corporate Income Tax Rate To Effective Tax Rate On Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States corporate tax rate amount | $ (1,650) | $ 30,553 | $ 220,472 |
Change in Tax Status of UK Subsidiaries One-time Tax Expense | 103,281 | 0 | 0 |
Nondeductible loss on investments managed by MCIM | 26,552 | 16,231 | 0 |
Foreign operations | 4,951 | 37,207 | 4,672 |
Tax-exempt investment income amount | (18,927) | (41,565) | (39,710) |
TCJA amount | (5,699) | (339,899) | 0 |
Tax credits amount | (3,617) | (10,236) | (13,294) |
Stock based compensation amount | (2,635) | (9,001) | (5,411) |
Other amount | 20,242 | 3,247 | 2,748 |
Income tax expense (benefit) | $ 122,498 | $ (313,463) | $ 169,477 |
Income Taxes (Components Of Dom
Income Taxes (Components Of Domestic And Foreign Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Unpaid losses and loss adjustment expenses | $ 164,497 | $ 144,761 |
Unearned premiums recognized for income tax purposes | 85,952 | 74,282 |
Life and annuity benefits | 78,370 | 77,945 |
Net operating loss carryforwards | 46,662 | 29,252 |
Tax credit carryforwards | 39,877 | 48,938 |
Accrued incentive compensation | 30,308 | 23,167 |
Other differences between financial reporting and tax bases | 39,763 | 60,995 |
Total gross deferred tax assets | 485,429 | 459,340 |
Less valuation allowance | (36,286) | (25,225) |
Total gross deferred tax assets, net of allowance | 449,143 | 434,115 |
Investments | 590,250 | 603,523 |
Goodwill and other intangible assets | 124,953 | 171,681 |
Deferred policy acquisition costs | 89,716 | 90,826 |
Other differences between financial reporting and tax bases | 90,269 | 73,664 |
Total gross deferred tax liabilities | 895,188 | 939,694 |
Net deferred tax liability | $ 446,045 | $ 505,579 |
Unpaid Losses And Loss Adjust_3
Unpaid Losses And Loss Adjustment Expenses (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Deferred gain related to the completion of the Part VII transfer | $ (3,900) | ||||||
Adverse (favorable) development related to the commutation of a property and casualty deposit contract | $ (11,700) | ||||||
Net reserves for losses and loss adjustment expenses of acquired insurance companies | $ 0 | 57,493 | 0 | ||||
Net losses and loss adjustment expenses | 3,371,699 | 3,367,223 | 2,555,902 | ||||
Adverse (favorable) development on prior years' loss reserves | $ (551,040) | $ (497,627) | (493,495) | ||||
IBNR reserves as a percentage of total unpaid losses and loss adjustment expenses | 64.00% | 64.00% | |||||
Asbestos-related reserves, gross loss incurred | $ 247,711 | $ 274,527 | 323,904 | ||||
Asbestos-related reserves, net loss incurred | 83,048 | 104,661 | 111,604 | $ 132,869 | |||
Asbestos and environmental net reserves for reported claims | 74,400 | ||||||
Asbestos and environmental reserves incurred but not reported, net | 8,700 | ||||||
Liability for asbestos and environmental claims, net claims paid since inception | 647,700 | ||||||
Insurance [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Net losses and loss adjustment expenses | 2,596,057 | 2,442,344 | 2,009,426 | ||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 12,088,244 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 6,928,416 | ||||||
Insurance [Member] | 2012 Accident Year [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 1,348,062 | 1,361,513 | 1,395,103 | 1,427,255 | $ 1,489,026 | $ 1,609,802 | $ 1,369,219 |
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | $ 1,150,793 | 1,117,221 | 1,052,859 | 937,643 | 780,067 | 567,450 | 233,371 |
Cumulative number of reported claims | 127,000 | ||||||
Insurance [Member] | 2012 Accident Year [Member] | Alterra [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 256,400 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 36,800 | ||||||
Insurance [Member] | 2013 Accident Year [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | $ 1,387,804 | 1,428,733 | 1,462,652 | 1,525,750 | 1,694,879 | 1,735,667 | |
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | $ 1,099,985 | 1,037,635 | 949,370 | 779,023 | 571,548 | 271,439 | |
Cumulative number of reported claims | 87 | ||||||
Insurance [Member] | 2013 Accident Year [Member] | Alterra [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 313,300 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 29,500 | ||||||
Insurance [Member] | 2017 Accident Year [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | $ 2,160,771 | 2,326,966 | |||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | $ 990,931 | 438,289 | |||||
Cumulative number of reported claims | 116 | ||||||
Insurance [Member] | 2018 Accident Year [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | $ 2,452,747 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | $ 496,812 | ||||||
Cumulative number of reported claims | 147 | ||||||
Reinsurance [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Net losses and loss adjustment expenses | $ 775,642 | 924,879 | 546,476 | ||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 4,264,423 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 1,880,409 | ||||||
Reinsurance [Member] | 2012 Accident Year [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 446,722 | 454,839 | 457,038 | 485,374 | 507,023 | 550,343 | 72,903 |
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 288,772 | 263,811 | 231,541 | 183,943 | 128,769 | 64,460 | $ 4,049 |
Reinsurance [Member] | 2012 Accident Year [Member] | Alterra [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 474,200 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 52,600 | ||||||
Reinsurance [Member] | 2013 Accident Year [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 506,609 | 543,963 | 534,148 | 547,828 | 578,994 | 586,074 | |
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 331,630 | 301,714 | 268,761 | $ 209,893 | $ 155,515 | 71,503 | |
Reinsurance [Member] | 2013 Accident Year [Member] | Alterra [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 536,200 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | $ 68,900 | ||||||
Reinsurance [Member] | 2017 Accident Year [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 939,604 | 906,216 | |||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 359,659 | 158,049 | |||||
Reinsurance [Member] | 2018 Accident Year [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 760,161 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 87,614 | ||||||
Asbestos [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Asbestos-related reserves, gross loss incurred | 188,300 | ||||||
Asbestos-related reserves, net loss incurred | 63,400 | ||||||
Gen Liab Workers Comp Prof Liab and Marine And Energy Insurance Segment Surety And Marine And Energy Reinsurance Segment [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Adverse (favorable) development on prior years' loss reserves | $ (424,100) | ||||||
Gen Liab Prof Liab Workers Comp Marine And Energy Insurance Segment Surety And Marine And Energy Reinsurance Segment [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Adverse (favorable) development on prior years' loss reserves | (422,900) | ||||||
Ogden Rate Change [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Adverse (favorable) development on prior years' loss reserves | 85,000 | ||||||
General liability property And Marine And Energy Insurance segment And Property lines Reinsurance segment [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Adverse (favorable) development on prior years' loss reserves | (418,000) | ||||||
Development On Specified Medical And Medical Malpractice [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Adverse (favorable) development on prior years' loss reserves | $ 71,200 | ||||||
Personal Lines [Member] | Insurance [Member] | 2012 Accident Year [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Cumulative number of reported claims | 66 | ||||||
Personal Lines [Member] | Insurance [Member] | 2013 Accident Year [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Cumulative number of reported claims | 17 | ||||||
Personal Lines [Member] | Insurance [Member] | 2017 Accident Year [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Cumulative number of reported claims | 24 | ||||||
Personal Lines [Member] | Insurance [Member] | 2018 Accident Year [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Cumulative number of reported claims | 46 | ||||||
2018 Catastrophes [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Net losses and loss adjustment expenses, net of assumed reinstatement premiums | $ 287,300 | ||||||
Net losses and loss adjustment expenses | 292,800 | ||||||
Net assumed reinstatement premiums | (5,400) | ||||||
Reinsurance recoverables | $ 244,100 | ||||||
2017 Catastrophes [Member] | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Net losses and loss adjustment expenses, net of assumed reinstatement premiums | 565,300 | ||||||
Net losses and loss adjustment expenses | 585,400 | ||||||
Net assumed reinstatement premiums | (20,100) | ||||||
Reinsurance recoverables | $ 490,300 |
Unpaid Losses And Loss Adjust_4
Unpaid Losses And Loss Adjustment Expenses (Reconciliation Of Consolidated Reserves For Losses And Loss Adjustment Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | 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 | $ 8,964,945 | $ 8,108,717 | $ 8,235,288 |
Foreign currency movements | (69,119) | 110,079 | (129,692) |
Adjusted net reserves for losses and loss adjustment expenses, beginning of year | 8,895,826 | 8,218,796 | 8,105,596 |
Incurred losses and loss adjustment expenses, current accident year | 3,371,699 | 3,367,223 | 2,555,902 |
Incurred losses and loss adjustment expenses, prior accident years | (551,040) | (497,627) | (493,495) |
Total incurred losses and loss adjustment expenses | 2,820,659 | 2,869,596 | 2,062,407 |
Payments, current accident year | 666,515 | 671,112 | 532,140 |
Payments, prior accident years | 1,835,027 | 1,513,580 | 1,529,206 |
Total payments | 2,501,542 | 2,184,692 | 2,061,346 |
Effect of foreign currency rate changes | (500) | 3,752 | 2,060 |
Net reserves for losses and loss adjustment expenses of acquired insurance companies | 0 | 57,493 | 0 |
Net reserves for losses and loss adjustment expenses, end of year | 9,214,443 | 8,964,945 | 8,108,717 |
Reinsurance recoverable on unpaid losses | 5,062,036 | 4,619,336 | 2,006,945 |
Gross reserves for losses and loss adjustment expenses, end of year | $ 14,276,479 | $ 13,584,281 | $ 10,115,662 |
Unpaid Losses And Loss Adjust_5
Unpaid Losses And Loss Adjustment Expenses (Ultimate Incurred Losses And Cumulative Paid Losses And Allocated Loss Adjustment Expenses, Net Of Reinsurance) (Details) number in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Claims Development [Line Items] | |||||||
Total liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | $ 9,006,199 | ||||||
Reinsurance [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 4,264,423 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 1,880,409 | ||||||
All outstanding liabilities for unpaid losses and loss adjustment expenses before 2012, net of reinsurance | 650,117 | ||||||
Total liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 3,034,131 | ||||||
Reinsurance [Member] | 2012 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 446,722 | $ 454,839 | $ 457,038 | $ 485,374 | $ 507,023 | $ 550,343 | $ 72,903 |
Total of incurred-but-not-reported liabilities, net of reinsurance | 62,700 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 288,772 | 263,811 | 231,541 | 183,943 | 128,769 | 64,460 | 4,049 |
Reinsurance [Member] | 2013 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 506,609 | 543,963 | 534,148 | 547,828 | 578,994 | 586,074 | |
Total of incurred-but-not-reported liabilities, net of reinsurance | 78,266 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 331,630 | 301,714 | 268,761 | 209,893 | 155,515 | 71,503 | |
Reinsurance [Member] | 2014 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 556,775 | 578,688 | 536,247 | 564,720 | 577,123 | ||
Total of incurred-but-not-reported liabilities, net of reinsurance | 121,489 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 312,296 | 275,278 | 226,883 | 158,105 | 97,918 | ||
Reinsurance [Member] | 2015 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 522,783 | 531,854 | 514,050 | 528,076 | |||
Total of incurred-but-not-reported liabilities, net of reinsurance | 197,446 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 259,366 | 207,985 | 133,932 | 63,924 | |||
Reinsurance [Member] | 2016 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 531,769 | 533,526 | 523,958 | ||||
Total of incurred-but-not-reported liabilities, net of reinsurance | 199,881 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 241,072 | 169,877 | 79,383 | ||||
Reinsurance [Member] | 2017 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 939,604 | 906,216 | |||||
Total of incurred-but-not-reported liabilities, net of reinsurance | 403,107 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 359,659 | 158,049 | |||||
Reinsurance [Member] | 2018 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 760,161 | ||||||
Total of incurred-but-not-reported liabilities, net of reinsurance | 543,670 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 87,614 | ||||||
Insurance [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 12,088,244 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | 6,928,416 | ||||||
All outstanding liabilities for unpaid losses and loss adjustment expenses before 2012, net of reinsurance | 605,610 | ||||||
Total liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 5,765,438 | ||||||
Insurance [Member] | 2012 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 1,348,062 | 1,361,513 | 1,395,103 | 1,427,255 | 1,489,026 | 1,609,802 | 1,369,219 |
Total of incurred-but-not-reported liabilities, net of reinsurance | $ 119,585 | ||||||
Cumulative number of reported claims | 127 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | $ 1,150,793 | 1,117,221 | 1,052,859 | 937,643 | 780,067 | 567,450 | $ 233,371 |
Insurance [Member] | 2013 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 1,387,804 | 1,428,733 | 1,462,652 | 1,525,750 | 1,694,879 | 1,735,667 | |
Total of incurred-but-not-reported liabilities, net of reinsurance | $ 200,744 | ||||||
Cumulative number of reported claims | 87 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | $ 1,099,985 | 1,037,635 | 949,370 | 779,023 | 571,548 | $ 271,439 | |
Insurance [Member] | 2014 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 1,522,132 | 1,570,428 | 1,627,960 | 1,695,698 | 1,862,947 | ||
Total of incurred-but-not-reported liabilities, net of reinsurance | $ 213,237 | ||||||
Cumulative number of reported claims | 78 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | $ 1,167,598 | 1,062,211 | 894,470 | 657,742 | $ 331,626 | ||
Insurance [Member] | 2015 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 1,530,354 | 1,585,447 | 1,710,271 | 1,783,064 | |||
Total of incurred-but-not-reported liabilities, net of reinsurance | $ 291,364 | ||||||
Cumulative number of reported claims | 84 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | $ 1,040,377 | 876,509 | 665,112 | $ 322,633 | |||
Insurance [Member] | 2016 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 1,686,374 | 1,786,959 | 1,871,455 | ||||
Total of incurred-but-not-reported liabilities, net of reinsurance | $ 378,681 | ||||||
Cumulative number of reported claims | 89 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | $ 981,920 | 752,606 | $ 372,182 | ||||
Insurance [Member] | 2017 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 2,160,771 | 2,326,966 | |||||
Total of incurred-but-not-reported liabilities, net of reinsurance | $ 691,736 | ||||||
Cumulative number of reported claims | 116 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | $ 990,931 | $ 438,289 | |||||
Insurance [Member] | 2018 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Ultimate incurred losses and allocated loss adjustment expenses, net of reinsurance | 2,452,747 | ||||||
Total of incurred-but-not-reported liabilities, net of reinsurance | $ 1,466,264 | ||||||
Cumulative number of reported claims | 147 | ||||||
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance | $ 496,812 | ||||||
Personal Lines [Member] | Insurance [Member] | 2012 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Cumulative number of reported claims | 66 | ||||||
Personal Lines [Member] | Insurance [Member] | 2013 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Cumulative number of reported claims | 17 | ||||||
Personal Lines [Member] | Insurance [Member] | 2017 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Cumulative number of reported claims | 24 | ||||||
Personal Lines [Member] | Insurance [Member] | 2018 Accident Year [Member] | |||||||
Claims Development [Line Items] | |||||||
Cumulative number of reported claims | 46 |
Unpaid Losses And Loss Adjust_6
Unpaid Losses And Loss Adjustment Expenses (Average Annual Percentage Payout Of Incurred Losses By Age (in Years), Net Of Reinsurance) (Details) | Dec. 31, 2018 |
Insurance [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average annual percentage payout of incurred losses in year 1 | 20.30% |
Average annual percentage payout of incurred losses in year 2 | 23.10% |
Average annual percentage payout of incurred losses in year 3 | 14.70% |
Average annual percentage payout of incurred losses in year 4 | 11.40% |
Average annual percentage payout of incurred losses in year 5 | 7.30% |
Average annual percentage payout of incurred losses in year 6 | 4.60% |
Average annual percentage payout of incurred losses in year 7 | 2.50% |
Reinsurance [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average annual percentage payout of incurred losses in year 1 | 12.60% |
Average annual percentage payout of incurred losses in year 2 | 15.50% |
Average annual percentage payout of incurred losses in year 3 | 13.00% |
Average annual percentage payout of incurred losses in year 4 | 10.60% |
Average annual percentage payout of incurred losses in year 5 | 7.90% |
Average annual percentage payout of incurred losses in year 6 | 6.60% |
Average annual percentage payout of incurred losses in year 7 | 5.60% |
Unpaid Losses And Loss Adjust_7
Unpaid Losses And Loss Adjustment Expenses (Reconciliation Of Net Incurred And Paid Loss Development Tables, By Segment, To The Liability For Losses And Loss Adjustment Expenses In The Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Liabilities for for unpaid losses and loss adjustment expenses, net of reinsurance | $ 9,006,199 | ||
Reinsurance recoverable on unpaid losses | 5,062,036 | ||
Unallocated loss adjustment expenses | 239,753 | ||
Unamortized fair value adjustments on acquired reserves for losses and loss adjustment expenses | (31,509) | ||
Total reconciling items | 208,244 | ||
Total gross liability for unpaid losses and loss adjustment expenses | 14,276,479 | $ 13,584,281 | $ 10,115,662 |
Insurance [Member] | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Liabilities for for unpaid losses and loss adjustment expenses, net of reinsurance | 5,765,438 | ||
Reinsurance recoverable on unpaid losses | 1,965,565 | ||
Total gross liability for unpaid losses and loss adjustment expenses | 7,947,772 | 7,711,510 | |
Reinsurance [Member] | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Liabilities for for unpaid losses and loss adjustment expenses, net of reinsurance | 3,034,131 | ||
Reinsurance recoverable on unpaid losses | 415,900 | ||
Total gross liability for unpaid losses and loss adjustment expenses | 3,425,751 | 3,248,070 | |
Other Insurance (Discontinued Lines) [Member] | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Liabilities for for unpaid losses and loss adjustment expenses, net of reinsurance | 204,069 | ||
Reinsurance recoverable on unpaid losses | 166,505 | ||
Program Services [Member] | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Liabilities for for unpaid losses and loss adjustment expenses, net of reinsurance | 2,561 | ||
Reinsurance recoverable on unpaid losses | 2,514,066 | ||
Total gross liability for unpaid losses and loss adjustment expenses | $ 2,516,627 | $ 2,195,431 |
Unpaid Losses And Loss Adjust_8
Unpaid Losses And Loss Adjustment Expenses (Reconciliation Of Consolidated A&E Reserves For Losses And Loss Adjustment Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract] | ||||
Net reserves for A&E losses and loss adjustment expenses, beginning of year | $ 104,661 | $ 111,604 | $ 132,869 | |
Commutations and other | (305) | 6,827 | 0 | |
Adjusted net reserves for A&E losses and loss adjustment expenses, beginning of year | 104,356 | 118,431 | $ 132,869 | |
Incurred losses and loss adjustment expenses | 0 | 659 | (5,277) | |
Payments | (21,308) | (14,429) | (15,988) | |
Net reserves for A&E losses and loss adjustment expenses, end of year | 83,048 | 104,661 | 111,604 | |
Reinsurance recoverable on unpaid losses | 164,663 | 169,866 | 212,300 | |
Gross reserves for A&E losses and loss adjustment expenses, end of year | $ 247,711 | $ 274,527 | $ 323,904 |
Life And Annuity Benefits (Narr
Life And Annuity Benefits (Narrative) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Liability for Future Policy Benefits [Abstract] | |
Average reserve valuation rate | 2.30% |
Life and annuity benefits reserve single contract concentration | 33.10% |
Annuities included in life and annuity benefits subject to discretionary withdrawal | $ 0 |
Life And Annuity Benefits (Sche
Life And Annuity Benefits (Schedule Of Life And Annuity Benefits) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Liability for Future Policy Benefits [Abstract] | ||
Life | $ 122,798 | $ 127,208 |
Annuities | 827,773 | 885,984 |
Accident and health | 50,882 | 58,920 |
Total life and annuity benefits | $ 1,001,453 | $ 1,072,112 |
Senior Long-Term Debt And Oth_3
Senior Long-Term Debt And Other Debt (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 30, 2017 | |
Debt Instrument [Line Items] | |||||
Repayments of assumed debt from business combination | $ 44,500 | $ 84,300 | |||
Loss on early extinguishment of debt | 0 | 0 | $ 44,100 | ||
Senior long-term debt and other debt | 3,009,577 | 3,099,230 | |||
Senior long-term debt and other debt, estimated fair value | 3,030,000 | 3,351,000 | |||
Interest on senior long-term debt and other debt | 155,400 | 141,300 | 135,400 | ||
7.20% Unsecured Senior Notes Due April 14, 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Unsecured senior notes, principal outstanding | $ 90,600 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, capacity available | 300,000 | ||||
Line of credit facility, potential increased maximum capacity | $ 500,000 | ||||
Line of credit facility, unused capacity, commitment fee, percent | 0.25% | ||||
Borrowings outstanding under the facility | $ 0 | $ 0 | |||
Secured Letters Of Credit [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, capacity available | $ 200,000 | ||||
Unsecured Senior Notes [Member] | 6.25% Unsecured Senior Notes Due September 30, 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 6.25% | 6.25% | |||
Unsecured Senior Notes [Member] | 7.20% Unsecured Senior Notes Due April 14, 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 7.20% | ||||
Unsecured Senior Notes [Member] | 3.50% Unsecured Senior Notes Due November 1, 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 3.50% | 3.50% | |||
Debt instrument, face amount | $ 300,000 | ||||
Net proceeds from issuance of unsecured senior notes | $ 297,400 | ||||
Unsecured Senior Notes [Member] | 4.30% Unsecured Senior Notes Due November 1, 2047 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 4.30% | 4.30% | |||
Debt instrument, face amount | $ 300,000 | ||||
Net proceeds from issuance of unsecured senior notes | $ 295,500 | ||||
Unsecured Senior Notes [Member] | 5.0% Unsecured Senior Notes Due April 5, 2046 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 5.00% | 5.00% | 5.00% | ||
Debt instrument, face amount | $ 500,000 | ||||
Net proceeds from issuance of unsecured senior notes | $ 493,100 | ||||
Unsecured Senior Notes [Member] | 7.35% Unsecured Senior Notes Due August 15, 2034 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 7.35% | 7.35% | 7.35% | ||
Debt instrument, repurchased face amount | $ 70,200 | ||||
Early repayment of senior debt | $ 95,000 | ||||
Unsecured Senior Notes [Member] | 7.125% Unsecured Senior Notes Due September 30, 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 7.125% | 7.125% | 7.125% | ||
Debt instrument, repurchased face amount | $ 108,800 | ||||
Early repayment of senior debt | $ 126,400 | ||||
Other Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior long-term debt and other debt | $ 102,975 | $ 185,282 | |||
Other Debt [Member] | Markel Diversified Fund [Member] | |||||
Debt Instrument [Line Items] | |||||
Note payable included in total liabilities of the Markel Diversified Fund delivered as part of the consideration provided for its investment | 24,875 | 62,500 | |||
Other Debt [Member] | Markel Ventures Operations [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior long-term debt and other debt | $ 78,100 | $ 78,300 | |||
Minimum [Member] | Other Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 1.70% | ||||
Maximum [Member] | Other Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 6.30% |
Senior Long-Term Debt And Oth_4
Senior Long-Term Debt And Other Debt (Summary Of Senior Long-Term Debt And Other Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2016 |
Debt Instrument [Line Items] | |||
Senior long-term debt and other debt | $ 3,009,577 | $ 3,099,230 | |
Unsecured Senior Notes [Member] | 7.125% Unsecured Senior Notes Due September 30, 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes | $ 234,640 | $ 234,411 | |
Debt instrument, interest rate | 7.125% | 7.125% | 7.125% |
Debt instrument, unamortized discount | $ 142 | $ 332 | |
Unsecured Senior Notes [Member] | 6.25% Unsecured Senior Notes Due September 30, 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes | $ 367,213 | $ 376,616 | |
Debt instrument, interest rate | 6.25% | 6.25% | |
Debt Instrument, unamortized premium | $ 17,213 | $ 26,618 | |
Unsecured Senior Notes [Member] | 5.35% Unsecured Senior Notes Due June 1, 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes | $ 249,417 | $ 249,176 | |
Debt instrument, interest rate | 5.35% | 5.35% | |
Debt instrument, unamortized discount | $ 499 | $ 706 | |
Unsecured Senior Notes [Member] | 4.90% Unsecured Senior Notes Due July 1, 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes | $ 348,864 | $ 348,540 | |
Debt instrument, interest rate | 4.90% | 4.90% | |
Debt instrument, unamortized discount | $ 978 | $ 1,257 | |
Unsecured Senior Notes [Member] | 3.625% Unsecured Senior Notes Due March 30, 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes | $ 248,988 | $ 248,749 | |
Debt instrument, interest rate | 3.625% | 3.625% | |
Debt instrument, unamortized discount | $ 855 | $ 1,056 | |
Unsecured Senior Notes [Member] | 3.50% Unsecured Senior Notes Due November 1, 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes | $ 297,035 | $ 296,728 | |
Debt instrument, interest rate | 3.50% | 3.50% | |
Debt instrument, unamortized discount | $ 2,298 | $ 2,558 | |
Unsecured Senior Notes [Member] | 7.35% Unsecured Senior Notes Due August 15, 2034 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes | $ 128,715 | $ 128,642 | |
Debt instrument, interest rate | 7.35% | 7.35% | 7.35% |
Debt instrument, unamortized discount | $ 1,074 | $ 1,143 | |
Unsecured Senior Notes [Member] | 5.0% Unsecured Senior Notes Due March 30, 2043 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes | $ 244,269 | $ 244,033 | |
Debt instrument, interest rate | 5.00% | 5.00% | |
Debt instrument, unamortized discount | $ 5,431 | $ 5,655 | |
Unsecured Senior Notes [Member] | 5.0% Unsecured Senior Notes Due April 5, 2046 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes | $ 492,486 | $ 492,219 | |
Debt instrument, interest rate | 5.00% | 5.00% | 5.00% |
Debt instrument, unamortized discount | $ 6,664 | $ 6,909 | |
Unsecured Senior Notes [Member] | 4.30% Unsecured Senior Notes Due November 1, 2047 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes | $ 294,975 | $ 294,834 | |
Debt instrument, interest rate | 4.30% | 4.30% | |
Debt instrument, unamortized discount | $ 4,278 | $ 4,451 | |
Other Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior long-term debt and other debt | $ 102,975 | $ 185,282 | |
Other Debt [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 1.70% | ||
Other Debt [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 6.30% |
Senior Long-Term Debt And Oth_5
Senior Long-Term Debt And Other Debt (Summary Of Future Principal Payments Due At Maturity On Senior Long-Term Debt And Other Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | $ 288,538 | |
2,020 | 356,585 | |
2,021 | 281,287 | |
2,022 | 356,315 | |
2,023 | 250,671 | |
2024 and thereafter | 1,484,896 | |
Total principal payments | 3,018,292 | |
Net unamortized premium | (5,005) | |
Net unamortized debt issuance costs | (3,710) | |
Senior long-term debt and other debt | $ 3,009,577 | $ 3,099,230 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares authorized | 50,000,000 | 50,000,000 | |
Common stock, par value | $ 0 | $ 0 | |
Common stock, shares issued | 13,887,711 | 13,903,526 | |
Common stock, shares outstanding | 13,887,711 | 13,903,526 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, par value | $ 0 | $ 0 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Stock Repurchased During Period, Shares | 35,174 | ||
Stock Repurchased During Period, Value | $ 39 | ||
May 2018 Share Repurchase Program [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Board of Directors approved the repurchase of common stock under a share repurchase program, maximum | $ 300 | ||
Stock Repurchased During Period, Shares | 19,665 | ||
Stock Repurchased During Period, Value | $ 21.4 | ||
November 2013 Share Repurchase Program [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Repurchased During Period, Shares | 15,509 | ||
Stock Repurchased During Period, Value | $ 17.6 | ||
Cumulative Stock Repurchased Shares | 199,244 | ||
Cumulative stock repurchased value | $ 175.6 | ||
2016 Employee Stock Purchase And Bonus Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Bonus calculation percentage based on the value of stocks acquired by employees | 10.00% | ||
Percentage of bonus shares award to loan program participants | 5.00% | ||
Shares authorized under the 2016 Employee Stock Purchase and Bonus Plan | 125,000 | ||
Number of shares available for purchase | 105,283 | ||
Loans outstanding under 2016 Employee Stock Purchase and Bonus Plan | $ 19.2 | $ 18.5 | |
Employee Stock Purchase And Bonus Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued under the prior Employee Stock Purchase and Bonus Plan since the effective date of the 2016 Employee Stock Purchase and Bonus Plan | 0 | ||
Number of shares available for purchase | 113,690 | ||
2012 Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based awards issued under the 2012 Compensation Plan since the effective date of the 2016 Compensation Plan | 0 | ||
2016 Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for future awards | 220,831 | ||
2016 Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock units awarded | 14,306 | ||
Number of restricted stock units vested | 24,535 | ||
Weighted average grant-date fair value, share-based awards | $ 1,121.68 | $ 979.23 | $ 878.03 |
Unrecognized compensation cost related to nonvested share-based awards | $ 8.8 | ||
Weighted average remaining service period of share-based awards | 1 year 9 months | ||
Fair value of the vested share-based awards | $ 19.1 | $ 28.8 | $ 29.8 |
2016 Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member] | Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock units awarded | 990 | ||
2016 Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member] | Performance Based [Member] | Associates And Executive Officers [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock issuable for each vested restricted stock unit | 1 | ||
Number of restricted stock units awarded | 11,214 | ||
Restricted stock awards, vesting period | 3 years | ||
2016 Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member] | Retention And Hiring [Member] | Associates And Executive Officers [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock issuable for each vested restricted stock unit | 1 | ||
Number of restricted stock units awarded | 2,102 | ||
Restricted stock awards, vesting period | 3 years |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule Of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||||||||||
Earnings Per Share [Line Items] | ||||||||||||||||||||||||||||||
Net Income (Loss) to Shareholders | $ (751,543) | [1] | $ 409,438 | [1] | $ 278,231 | [1] | $ (64,306) | [1] | $ 434,881 | [1] | $ (259,141) | [1] | $ 149,660 | [1] | $ 69,869 | [1] | $ 132,726 | [1] | $ 83,796 | [1] | $ 78,797 | [1] | $ 160,370 | [1] | $ (128,180) | [2] | $ 395,269 | [2] | $ 455,689 | [2] |
Adjustment of redeemable noncontrolling interests | (4,828) | (33,738) | (15,472) | |||||||||||||||||||||||||||
Adjusted net income to shareholders | $ (133,008) | $ 361,531 | $ 440,217 | |||||||||||||||||||||||||||
Basic common shares outstanding | 13,923 | 13,964 | 14,013 | |||||||||||||||||||||||||||
Diluted shares outstanding | 13,923 | 14,006 | 14,078 | |||||||||||||||||||||||||||
Basic net income (loss) per share (dollars per share) | $ (53.88) | $ 28.56 | $ 20.01 | $ (4.25) | $ 30.48 | $ (18.82) | $ 10.34 | $ 3.91 | $ 9.14 | $ 5.62 | $ 5.44 | $ 11.21 | $ (9.55) | $ 25.89 | $ 31.41 | |||||||||||||||
Diluted net income (loss) per share (dollars per share) | $ (53.88) | $ 28.50 | $ 19.97 | $ (4.25) | $ 30.39 | $ (18.82) | $ 10.31 | $ 3.90 | $ 9.11 | $ 5.60 | $ 5.41 | $ 11.15 | $ (9.55) | [3] | $ 25.81 | [3] | $ 31.27 | [3] | ||||||||||||
Stock Options [Member] | ||||||||||||||||||||||||||||||
Earnings Per Share [Line Items] | ||||||||||||||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 1 | 4 | |||||||||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||||||||||||||||||||
Earnings Per Share [Line Items] | ||||||||||||||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 41 | 61 | |||||||||||||||||||||||||||
Dilutive potential common shares | 25 | |||||||||||||||||||||||||||||
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. | |||||||||||||||||||||||||||||
[2] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. | |||||||||||||||||||||||||||||
[3] | The impact of restricted stock units and restricted stock of 25 thousand shares was excluded from the computation of diluted earnings per share for the year ended December 31, 2018 because the effect would have been anti-dilutive. |
Shareholders' Equity (Summary O
Shareholders' Equity (Summary Of Nonvested Share-Based Awards) (Details) - 2016 Compensation Plan [Member] - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of awards, nonvested awards, beginning balance | 31,518 | ||
Number of awards, granted | 14,306 | ||
Number of awards, vested | (24,535) | ||
Number of awards, nonvested awards, ending balance | 20,873 | 31,518 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Weighted average grant-date fair value, nonvested awards, beginning balance | $ 808.63 | ||
Weighted average grant-date fair value, granted | 1,121.68 | $ 979.23 | $ 878.03 |
Weighted average grant-date fair value, vested | 779.65 | ||
Weighted average grant-date fair value, nonvested awards, ending balance | $ 1,042.83 | $ 808.63 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 416 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 914.94 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Change In Accumulated Other Comprehensive Income By Component, Net Of Taxes And Noncontrolling Interests) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive income, beginning balance | $ 2,345,571 | $ 1,565,866 | $ 1,354,508 | ||
Other comprehensive income (loss) before reclassifications | (257,780) | 800,834 | 243,286 | ||
Amounts reclassified from accumulated other comprehensive income | 10,190 | [1] | (21,129) | (31,928) | |
Cumulative Effect of Adoption of ASU No. 2016-01, Net of Taxes | $ (2,595,484) | ||||
Cumulative Effect of Adoption of ASU No 2018-02 | 402,853 | ||||
Accumulated Other Comprehensive Income, Adjusted | 152,940 | ||||
Total other comprehensive income (loss) | (247,590) | 779,705 | 211,358 | ||
Accumulated other comprehensive income, ending balance | (94,650) | 2,345,571 | 1,565,866 | ||
Unrealized Holding Gains On Available-For-Sale Securities [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive income, beginning balance | 2,477,973 | 1,714,930 | 1,472,762 | ||
Other comprehensive income (loss) before reclassifications | (241,325) | 787,339 | 275,696 | ||
Amounts reclassified from accumulated other comprehensive income | 7,849 | [1] | (24,296) | (33,528) | |
Cumulative Effect of Adoption of ASU No. 2016-01, Net of Taxes | (2,597,976) | ||||
Cumulative Effect of Adoption of ASU No 2018-02 | 401,539 | ||||
Accumulated Other Comprehensive Income, Adjusted | 281,536 | ||||
Total other comprehensive income (loss) | (233,476) | 763,043 | 242,168 | ||
Accumulated other comprehensive income, ending balance | 48,060 | 2,477,973 | 1,714,930 | ||
Foreign Currency [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive income, beginning balance | (74,003) | (84,406) | (72,696) | ||
Other comprehensive income (loss) before reclassifications | (16,455) | 10,403 | (11,710) | ||
Amounts reclassified from accumulated other comprehensive income | 0 | [1] | 0 | 0 | |
Cumulative Effect of Adoption of ASU No. 2016-01, Net of Taxes | 2,492 | ||||
Cumulative Effect of Adoption of ASU No 2018-02 | 1,314 | ||||
Accumulated Other Comprehensive Income, Adjusted | (70,197) | ||||
Total other comprehensive income (loss) | (16,455) | 10,403 | (11,710) | ||
Accumulated other comprehensive income, ending balance | (86,652) | (74,003) | (84,406) | ||
Net Actuarial Pension Loss [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive income, beginning balance | (58,399) | (64,658) | (45,558) | ||
Other comprehensive income (loss) before reclassifications | 0 | 3,092 | (20,700) | ||
Amounts reclassified from accumulated other comprehensive income | 2,341 | [1] | 3,167 | 1,600 | |
Cumulative Effect of Adoption of ASU No. 2016-01, Net of Taxes | 0 | ||||
Cumulative Effect of Adoption of ASU No 2018-02 | 0 | ||||
Accumulated Other Comprehensive Income, Adjusted | $ (58,399) | ||||
Total other comprehensive income (loss) | 2,341 | 6,259 | (19,100) | ||
Accumulated other comprehensive income, ending balance | $ (56,058) | $ (58,399) | $ (64,658) | ||
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) (Schedule Of Tax Expense (Benefit) Of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Net holding gains arising during the period | [1] | $ (68,056) | $ 372,469 | $ 112,399 |
Change in unrealized other-than-temporary impairment losses on fixed maturities arising during the period | [1] | 0 | 0 | 6 |
Reclassification adjustments for net losses included in net income | [1] | 2,086 | (10,072) | (12,462) |
Change in net unrealized gains on investments | [1] | (65,970) | 362,397 | 99,943 |
Change in foreign currency translation adjustments | 1,523 | 28 | 1,037 | |
Change in net actuarial pension loss | 622 | 1,284 | (4,192) | |
Total | $ (63,825) | $ 363,709 | $ 96,788 | |
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. |
Other Comprehensive Income (L_5
Other Comprehensive Income (Loss) (Amounts Reclassified From Accumulated Other Comprehensive Income Into Income, By Component) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2017 | [1] | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||||||||||||
Other-than-temporary impairment losses recognized in net income | $ 0 | $ (7,589) | $ (18,355) | |||||||||||||||||||||||||
Net realized investment gains (losses), excluding other-than-temporary impairment losses | (11,974) | 47,174 | 66,711 | |||||||||||||||||||||||||
Income (Loss) Before Income Taxes | (7,855) | 87,295 | 629,920 | |||||||||||||||||||||||||
Income Taxes | (122,498) | 313,463 | (169,477) | |||||||||||||||||||||||||
Underwriting, acquisition and insurance expenses | (1,777,511) | (1,589,464) | (1,497,125) | |||||||||||||||||||||||||
Net income (loss) | $ (753,374) | $ 409,028 | $ 279,587 | $ (65,594) | $ 439,326 | $ (261,035) | $ 151,427 | $ 71,040 | $ 132,703 | $ 83,421 | $ 80,673 | $ 163,646 | (130,353) | 400,758 | 460,443 | |||||||||||||
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 | [2] | 0 | (7,589) | (18,355) | ||||||||||||||||||||||||
Net realized investment gains (losses), excluding other-than-temporary impairment losses | [2] | (9,935) | 41,957 | 64,345 | ||||||||||||||||||||||||
Income (Loss) Before Income Taxes | [2] | (9,935) | 34,368 | 45,990 | ||||||||||||||||||||||||
Income Taxes | [2] | 2,086 | (10,072) | (12,462) | ||||||||||||||||||||||||
Net income (loss) | [2] | (7,849) | 24,296 | 33,528 | ||||||||||||||||||||||||
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Net Actuarial Pension Loss [Member] | ||||||||||||||||||||||||||||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||||||||||||
Income Taxes | 622 | 648 | 351 | |||||||||||||||||||||||||
Underwriting, acquisition and insurance expenses | (2,963) | (3,815) | (1,951) | |||||||||||||||||||||||||
Net income (loss) | $ (2,341) | $ (3,167) | $ (1,600) | |||||||||||||||||||||||||
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. | |||||||||||||||||||||||||||
[2] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Net investment gains (losses) | $ (437,596) | [1] | $ (5,303) | [2] | $ 65,147 | [3] | |
Other Comprehensive Income (Loss), Net of Tax | (299,446) | 1,125,440 | $ 342,111 | ||||
Equity securities | 5,720,945 | 0 | |||||
Equity securities, available-for-sale | 0 | 5,967,847 | |||||
Fair value, level 1 to level 2 transfers, amount | 0 | 0 | |||||
Fair value, level 2 to level 1 transfers, amount | 0 | 0 | |||||
Net realized investment gains (losses) | [4] | $ 108,646 | 51,970 | ||||
Short-Term Investments [Member] | Maximum [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Investment maturity period | 1 year | ||||||
Nonrecurring [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Assets measured at fair value | $ 0 | 0 | |||||
Liabilities measured at fair value | 0 | 0 | |||||
CATCo Reinsurance Opportunities Fund Ltd. (CROF) [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Net investment gains (losses) | (16,000) | ||||||
Other Comprehensive Income (Loss), Net of Tax | (5,800) | ||||||
Equity securities | $ 4,500 | ||||||
Equity securities, available-for-sale | $ 20,500 | ||||||
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment losses within net income. Prior periods have not been restated to conform to the current presentation. See note 1. | ||||||
[2] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment losses within net income. Prior periods have not been restated to conform to the current presentation. See note 1. | ||||||
[3] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment gains within net income. Prior periods have not been restated to conform to the current presentation. See note 1. | ||||||
[4] | Included in change in fair value of equity securities in the consolidated statements of income (loss) and comprehensive income (loss) for the years ended December 31, 2018 and 2017. |
Fair Value Measurements (Balanc
Fair Value Measurements (Balances Of Assets Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | $ 10,043,188 | $ 9,940,670 | ||
Equity securities | 5,720,945 | 0 | ||
Short-term investments | 1,077,696 | 2,160,974 | ||
Total investments | 11,120,884 | 18,069,491 | ||
Fixed Maturities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 10,043,188 | 9,940,670 | ||
U.S. Treasury Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 246,642 | 160,613 | ||
U.S. Government-Sponsored Enterprises [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 359,322 | 363,520 | ||
Obligations Of States, Municipalities And Political Subdivisions [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 4,352,930 | 4,566,562 | ||
Foreign Governments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 1,559,604 | 1,489,228 | ||
Commercial Mortgage-Backed Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 1,650,199 | 1,234,326 | ||
Residential Mortgage-Backed Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 880,172 | 856,168 | ||
Asset-Backed Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 19,408 | 34,728 | ||
Corporate Bonds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 974,911 | 1,235,525 | ||
Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total investments | [1] | 5,967,847 | ||
Insurance, Banks And Other Financial Institutions [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total investments | [1] | 2,103,033 | ||
Industrial, Consumer And All Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total investments | [1] | 3,864,814 | ||
Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 10,043,188 | 9,940,670 | ||
Equity securities | 5,720,945 | 5,967,847 | [2] | |
Short-term investments | 1,077,696 | 2,160,974 | ||
Total investments | 16,841,829 | 18,069,491 | [2] | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Equity securities | 5,667,217 | 5,799,038 | [2] | |
Short-term investments | 981,616 | 2,065,749 | ||
Total investments | 6,648,833 | 7,864,787 | [2] | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 10,043,188 | 9,940,670 | ||
Equity securities | 0 | 0 | [2] | |
Short-term investments | 96,080 | 95,225 | ||
Total investments | 10,139,268 | 10,035,895 | [2] | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Equity securities | 53,728 | 168,809 | [2] | |
Short-term investments | 0 | 0 | ||
Total investments | 53,728 | 168,809 | [2] | |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 246,642 | 160,613 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 246,642 | 160,613 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 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] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 359,322 | 363,520 | ||
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] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 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] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 359,322 | 363,520 | ||
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] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Obligations Of States, Municipalities And Political Subdivisions [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 4,352,930 | 4,566,562 | ||
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] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Obligations Of States, Municipalities And Political Subdivisions [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 4,352,930 | 4,566,562 | ||
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] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Foreign Governments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 1,559,604 | 1,489,228 | ||
Fair Value, Measurements, Recurring [Member] | Foreign Governments [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Foreign Governments [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 1,559,604 | 1,489,228 | ||
Fair Value, Measurements, Recurring [Member] | Foreign Governments [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 1,650,199 | 1,234,326 | ||
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed Securities [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed Securities [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 1,650,199 | 1,234,326 | ||
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed Securities [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 880,172 | 856,168 | ||
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 880,172 | 856,168 | ||
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 19,408 | 34,728 | ||
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 19,408 | 34,728 | ||
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 974,911 | 1,235,525 | ||
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 974,911 | 1,235,525 | ||
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale fixed maturity investments, estimated fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Insurance, Banks And Other Financial Institutions [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 1,930,539 | 2,103,033 | [2] | |
Fair Value, Measurements, Recurring [Member] | Insurance, Banks And Other Financial Institutions [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 1,876,811 | 1,934,224 | [2] | |
Fair Value, Measurements, Recurring [Member] | Insurance, Banks And Other Financial Institutions [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 0 | 0 | [2] | |
Fair Value, Measurements, Recurring [Member] | Insurance, Banks And Other Financial Institutions [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 53,728 | 168,809 | [2] | |
Fair Value, Measurements, Recurring [Member] | Industrial, Consumer And All Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 3,790,406 | 3,864,814 | [2] | |
Fair Value, Measurements, Recurring [Member] | Industrial, Consumer And All Other [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 3,790,406 | 3,864,814 | [2] | |
Fair Value, Measurements, Recurring [Member] | Industrial, Consumer And All Other [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 0 | 0 | [2] | |
Fair Value, Measurements, Recurring [Member] | Industrial, Consumer And All Other [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | $ 0 | $ 0 | [2] | |
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See note 1. | |||
[2] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See note 1. |
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 | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Fair Value Disclosures [Abstract] | |||
Equity securities, beginning of period | $ 168,809 | $ 191,203 | |
Purchases | 28,900 | 56,250 | |
Sales | (35,335) | (26,674) | |
Total gains (losses) included in net income (loss) | [1] | (108,646) | (51,970) |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Equity securities, end of period | $ 53,728 | $ 168,809 | |
[1] | Included in change in fair value of equity securities in the consolidated statements of income (loss) and comprehensive income (loss) for the years ended December 31, 2018 and 2017. |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)reinsurer | Dec. 31, 2017USD ($)reinsurer | Dec. 31, 2016USD ($) | |
Reinsurance Disclosures [Line Items] | |||
Number of largest company reinsurers | reinsurer | 10 | ||
Percentage of ceded earned premiums to gross earned premiums | 38.00% | 21.00% | 17.00% |
Percentage of assumed earned premiums to net earned premiums | 28.00% | 30.00% | 30.00% |
2018 Catastrophes [Member] | |||
Reinsurance Disclosures [Line Items] | |||
Reinsurance recoverables | $ 244.1 | ||
2017 Catastrophes [Member] | |||
Reinsurance Disclosures [Line Items] | |||
Reinsurance recoverables | $ 490.3 | ||
Underwriting Operations [Member] | |||
Reinsurance Disclosures [Line Items] | |||
Number of largest company reinsurers | reinsurer | 10 | ||
Reinsurance recoverables | $ 710.5 | $ 856.8 | $ 362 |
Underwriting Operations [Member] | Ten Largest Reinsurers [Member] | |||
Reinsurance Disclosures [Line Items] | |||
Recoverable balances as a percentage of the total balance | 61.00% | 61.00% | |
Underwriting Operations [Member] | Fairfax Financial Group [Member] | |||
Reinsurance Disclosures [Line Items] | |||
Recoverable balances as a percentage of the total balance | 9.00% | ||
Program Services [Member] | |||
Reinsurance Disclosures [Line Items] | |||
Number of largest company reinsurers | reinsurer | 10 | ||
Reinsurance recoverables | $ 1,300 | ||
Program Services [Member] | Ten Largest Reinsurers [Member] | |||
Reinsurance Disclosures [Line Items] | |||
Recoverable balances as a percentage of the total balance | 75.00% | 79.00% | |
Program Services [Member] | Fosun International Holdings, Ltd [Member] | |||
Reinsurance Disclosures [Line Items] | |||
Recoverable balances as a percentage of the total balance | 24.00% |
Reinsurance (Effect Of Reinsura
Reinsurance (Effect Of Reinsurance And Retrocessional Reinsurance On Premiums Written And Earned) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effects of Reinsurance [Line Items] | |||
Direct premiums written | $ 6,584,804 | $ 4,172,467 | $ 3,560,635 |
Direct premiums earned | 6,235,218 | 4,068,622 | 3,506,687 |
Assumed premiums written | 1,279,665 | 1,334,493 | 1,236,010 |
Assumed premiums earned | 1,319,613 | 1,287,395 | 1,176,205 |
Ceded premiums written | (3,076,891) | (1,089,173) | (795,625) |
Ceded premiums earned | (2,842,771) | (1,108,039) | (817,022) |
Net premiums written | 4,787,578 | 4,417,787 | 4,001,020 |
Net premiums earned | 4,712,060 | 4,247,978 | 3,865,870 |
Underwriting [Member] | |||
Effects of Reinsurance [Line Items] | |||
Direct premiums written | 4,562,256 | 3,919,602 | 3,560,635 |
Direct premiums earned | 4,384,562 | 3,777,335 | 3,506,687 |
Assumed premiums written | 1,236,740 | 1,333,505 | 1,236,010 |
Assumed premiums earned | 1,291,032 | 1,286,043 | 1,176,205 |
Ceded premiums written | (1,013,406) | (835,320) | (795,625) |
Ceded premiums earned | (964,549) | (815,400) | (817,022) |
Net premiums written | 4,785,590 | 4,417,787 | 4,001,020 |
Net premiums earned | 4,711,045 | 4,247,978 | 3,865,870 |
Program Services [Member] | |||
Effects of Reinsurance [Line Items] | |||
Direct premiums written | 2,022,548 | 252,865 | 0 |
Direct premiums earned | 1,850,656 | 291,287 | 0 |
Assumed premiums written | 42,925 | 988 | 0 |
Assumed premiums earned | 28,581 | 1,352 | 0 |
Ceded premiums written | (2,063,485) | (253,853) | 0 |
Ceded premiums earned | (1,878,222) | (292,639) | 0 |
Net premiums written | 1,988 | 0 | 0 |
Net premiums earned | $ 1,015 | $ 0 | $ 0 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |||
Other revenues | $ 2,132,606 | $ 1,413,275 | $ 1,307,779 |
Equity securities | 5,720,945 | 0 | |
Fair value of the Company's investment in CROF | 0 | 5,967,847 | |
CATCo Reinsurance Opportunities Fund Ltd. (CROF) [Member] | |||
Variable Interest Entity [Line Items] | |||
Equity securities | $ 4,500 | ||
Fair value of the Company's investment in CROF | $ 20,500 | ||
Unconsolidated Markel CATCo Fund 1 [Member] | |||
Variable Interest Entity [Line Items] | |||
Percentage of total assets of the Markel Diversified Fund invested in one of the unconsolidated Funds | 2.00% | 7.00% | |
Unconsolidated Markel CATCo Fund 2 [Member] | |||
Variable Interest Entity [Line Items] | |||
Variable Interest Entity, Consolidated, Carrying Amount, Investment in one of the unconsolidated funds | $ 26,200 | ||
Other [Member] | |||
Variable Interest Entity [Line Items] | |||
Other revenues | 220,541 | $ 79,995 | 93,330 |
Revenue from Contract with Customer [Member] | |||
Variable Interest Entity [Line Items] | |||
Other revenues | 1,944,667 | 1,305,655 | 1,223,305 |
Revenue from Contract with Customer [Member] | Investment Management [Member] | |||
Variable Interest Entity [Line Items] | |||
Other revenues | 91,527 | 28,740 | 56,455 |
Revenue from Contract with Customer [Member] | Other [Member] | |||
Variable Interest Entity [Line Items] | |||
Other revenues | 124,763 | 63,486 | 91,439 |
Revenue from Contract with Customer [Member] | Other [Member] | Investment Management [Member] | |||
Variable Interest Entity [Line Items] | |||
Other revenues | 91,527 | ||
Unconsolidated Markel CATCo Funds [Member] | |||
Variable Interest Entity [Line Items] | |||
Other revenues | 66,200 | ||
Net investment and insurance assets under management of MCIM for unconsolidated VIEs | $ 3,400,000 | ||
Unconsolidated Markel CATCo Funds [Member] | Revenue from Contract with Customer [Member] | Other [Member] | Investment Management [Member] | |||
Variable Interest Entity [Line Items] | |||
Other revenues | $ 28,740 | $ 56,455 |
Variable Interest Entities Sche
Variable Interest Entities Schedule of Variable interest Entities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Other assets | $ 1,383,823 | $ 1,223,365 |
Other liabilities | 1,796,036 | 1,748,460 |
Markel Diversified Fund [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Investment in one of the unconsolidated funds | 27,547 | 168,192 |
Other assets | 1,082 | 2,059 |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 28,629 | 170,251 |
Other liabilities | 200 | 168 |
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | 25,075 | 62,668 |
Other Debt [Member] | Markel Diversified Fund [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Note Payable | $ 24,875 | $ 62,500 |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Narrative) (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Nephila Funds and Nephila Reinsurers [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues attributable to management contracts with Nephila Funds and the Nephila Renisurers | $ 24.4 | |||
Syndicate 2357 [Member] | ||||
Related Party Transaction [Line Items] | ||||
Gross written premiums on Markel's program with Nephila | $ 322.1 | |||
Reinsurance recoverables from Syndicate 2357 | 179.8 | 179.8 | ||
Markel CATCo Re. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Gross written premiums on behalf of Markel CATCo Re. | 10.9 | $ 9.7 | $ 6.7 | |
Maximum loss exposure on certain contracts | $ 250 | $ 250 |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 21, 2019 | |
Loss Contingencies [Line Items] | |||||
Maximum remaining term of noncancelable operating leases | 16 years | ||||
Rental expense | $ 52,900 | $ 44,600 | $ 40,200 | ||
Goodwill, Impairment Loss | 91,910 | 0 | (18,700) | ||
Impairment of Intangible Assets (Excluding Goodwill) | 107,300 | ||||
Impairment of Goodwill and Intangible Assets | 199,198 | 0 | 18,723 | ||
Markel Ventures Operations [Member] | |||||
Loss Contingencies [Line Items] | |||||
Goodwill, Impairment Loss | 0 | ||||
Impairment of Goodwill and Intangible Assets | 14,904 | 18,723 | |||
Industrial Products [Member] | |||||
Loss Contingencies [Line Items] | |||||
Impairment of Goodwill and Intangible Assets | 14,900 | ||||
Industrial Products [Member] | Markel Ventures Operations [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | 33,500 | ||||
Intangible Assets, Net (Including Goodwill) | 0 | ||||
Markel CATCo IM [Member] | |||||
Loss Contingencies [Line Items] | |||||
Accrued incentive and retention compensation | 52,900 | 34,900 | |||
Compensation Expense | 12,300 | $ 38,100 | $ 33,200 | ||
Accrued and unpaid incentive and retention compensation | 19,200 | ||||
Goodwill, Impairment Loss | 91,900 | ||||
Impairment of Intangible Assets (Excluding Goodwill) | 87,100 | ||||
Impairment of Goodwill and Intangible Assets | 179,000 | ||||
Intangible Assets, Net (Including Goodwill) | $ 0 | ||||
Markel CATCo IM [Member] | Markel CATCo IM [Member] | |||||
Loss Contingencies [Line Items] | |||||
AssetAcquisitionPerformanceAndRetentionBonuses | $ 100,000 | ||||
Subsequent Event [Domain] | Anthony Belisle v. Markel CATCo Investment Management Ltd and Markel Corp. [Member] | |||||
Loss Contingencies [Line Items] | |||||
Asserted claims | $ 66,000 | ||||
Subsequent Event [Domain] | Alissa Fredricks v. Markel CATCo Investment Management Ltd. and Markel Corp. [Member] | |||||
Loss Contingencies [Line Items] | |||||
Asserted claims | $ 7,500 |
Commitments And Contingencies_3
Commitments And Contingencies (Minimum Annual Rental Commitments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 48,853 |
2,020 | 41,630 |
2,021 | 37,602 |
2,022 | 31,898 |
2,023 | 28,261 |
2024 and thereafter | 117,663 |
Total | $ 305,907 |
Statutory Financial Informati_3
Statutory Financial Information (Narrative) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Statutory Accounting Practices [Line Items] | |
Amount of cash and investments held as funds at Lloyd's | $ 864.3 |
Funds at Lloyd's, Holding Company | 311.6 |
United States [Member] | |
Statutory Accounting Practices [Line Items] | |
Amount available for dividend payment | 466 |
Bermuda [Member] | |
Statutory Accounting Practices [Line Items] | |
Amount available for dividend payment | $ 373.9 |
Statutory Financial Informati_4
Statutory Financial Information (Actual Statutory Capital And Surplus) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
United States [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Actual statutory capital and surplus | $ 3,158,828 | $ 3,424,330 |
United Kingdom [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Actual statutory capital and surplus | 621,802 | 642,418 |
Bermuda [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Actual statutory capital and surplus | 1,495,563 | 1,779,387 |
Other Countries [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Actual statutory capital and surplus | $ 74,704 | $ 34,002 |
Statutory Financial Informati_5
Statutory Financial Information (Statutory Net Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
United States [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | $ 414,957 | $ 312,828 | $ 249,176 |
United Kingdom [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | 40,203 | (25,785) | 78,033 |
Bermuda [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | (131,411) | (78,070) | 132,442 |
Other Countries [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | $ (5,193) | $ (4,812) | $ (965) |
Segment Reporting Disclosures_2
Segment Reporting Disclosures (Narrative) (Details) - segment | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Major Customer [Line Items] | |||
Number of reportable ongoing underwriting segments | 2 | ||
Underwriting Operations [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of gross premiums written | 100.00% | 100.00% | 100.00% |
Markel Ventures Operations [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of Revenue Attributable to U.S. | 88.00% | 85.00% | 84.00% |
Top Three Independent Brokers [Member] | Underwriting Operations [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of gross premiums written | 25.00% | 27.00% | 28.00% |
Top Three Independent Brokers [Member] | Insurance [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of gross premiums written | 13.00% | 14.00% | 15.00% |
Top Three Independent Brokers [Member] | Reinsurance [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of gross premiums written | 76.00% | 78.00% | 75.00% |
Segment Reporting Disclosures_3
Segment Reporting Disclosures (Company's Segment Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Segment Reporting Information [Line Items] | ||||||
Gross premium volume | $ 7,864,469 | $ 5,506,960 | $ 4,796,645 | |||
Net written premiums | 4,787,578 | 4,417,787 | 4,001,020 | |||
Earned premiums | 4,712,060 | 4,247,978 | 3,865,870 | |||
Losses and loss adjustment expenses, current accident year | (3,371,699) | (3,367,223) | (2,555,902) | |||
Losses and loss adjustment expenses, prior accident years | 550,984 | 501,462 | 505,158 | |||
Amortization of policy acquisition costs | (1,009,303) | (894,353) | (782,221) | |||
Other operating expenses | (768,208) | (695,111) | (714,904) | |||
Underwriting profit (loss) | 113,834 | (207,247) | 318,001 | |||
Net investment income | 434,215 | 405,709 | 373,230 | |||
Net investment gains (losses) | (437,596) | [1] | (5,303) | [2] | 65,147 | [3] |
Products Revenues | 1,497,523 | 951,012 | 885,473 | |||
Services and other revenues | 635,083 | 462,263 | 422,306 | |||
Products expenses | (1,413,248) | [4] | (850,449) | [5] | (755,591) | [6] |
Services and other expenses | (474,924) | [4] | (458,621) | [5] | (416,141) | [6] |
Amortization of intangible assets | (115,930) | [7] | (80,758) | [8] | (68,533) | [9] |
Impairment of Goodwill and Intangible Assets | (199,198) | 0 | (18,723) | |||
Segment profit (loss) | 39,759 | 216,606 | 805,169 | |||
Interest expense | (154,212) | (132,451) | (129,896) | |||
Loss on early extinguishment of debt | 0 | 0 | (44,100) | |||
Net foreign exchange gains (losses) | 106,598 | 3,140 | (1,253) | |||
Income (Loss) Before Income Taxes | $ (7,855) | $ 87,295 | $ 629,920 | |||
U.S. GAAP combined ratio | 98.00% | [10] | 105.00% | [11] | 92.00% | [12] |
Depreciation expense | $ (80,900) | $ (71,600) | $ (64,800) | |||
Insurance [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross premium volume | 4,749,166 | 4,141,201 | 3,755,081 | |||
Net written premiums | 3,904,773 | 3,439,796 | 3,101,657 | |||
Earned premiums | 3,783,939 | 3,314,033 | 3,028,844 | |||
Losses and loss adjustment expenses, current accident year | (2,596,057) | (2,442,344) | (2,009,426) | |||
Losses and loss adjustment expenses, prior accident years | 502,260 | 500,627 | 369,594 | |||
Amortization of policy acquisition costs | (770,183) | (675,470) | (592,766) | |||
Other operating expenses | (691,186) | (611,749) | (597,201) | |||
Underwriting profit (loss) | 228,773 | 85,097 | 199,045 | |||
Net investment income | 0 | 0 | 0 | |||
Net investment gains (losses) | 0 | [1] | 0 | [2] | 0 | [3] |
Products Revenues | 0 | 0 | ||||
Services and other revenues | 0 | 0 | 0 | |||
Products expenses | 0 | [4] | 0 | [5] | 0 | [6] |
Services and other expenses | 0 | [4] | 0 | [5] | 0 | [6] |
Amortization of intangible assets | 0 | [7] | 0 | [8] | 0 | [9] |
Impairment of Goodwill and Intangible Assets | 0 | 0 | ||||
Segment profit (loss) | $ 228,773 | $ 85,097 | $ 199,045 | |||
U.S. GAAP combined ratio | 94.00% | [10] | 97.00% | [11] | 93.00% | [12] |
Reinsurance [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross premium volume | $ 1,050,870 | $ 1,112,101 | $ 1,041,055 | |||
Net written premiums | 882,285 | 978,160 | 898,728 | |||
Earned premiums | 928,574 | 934,114 | 836,264 | |||
Losses and loss adjustment expenses, current accident year | (775,642) | (924,879) | (546,476) | |||
Losses and loss adjustment expenses, prior accident years | 42,982 | (7,803) | 125,514 | |||
Amortization of policy acquisition costs | (239,120) | (218,883) | (189,455) | |||
Other operating expenses | (75,081) | (82,567) | (116,642) | |||
Underwriting profit (loss) | (118,287) | (300,018) | 109,205 | |||
Net investment income | 0 | 0 | 0 | |||
Net investment gains (losses) | 0 | [1] | 0 | [2] | 0 | [3] |
Products Revenues | 0 | 0 | ||||
Services and other revenues | 0 | 0 | 0 | |||
Products expenses | 0 | [4] | 0 | [5] | 0 | [6] |
Services and other expenses | 0 | [4] | 0 | [5] | 0 | [6] |
Amortization of intangible assets | 0 | [7] | 0 | [8] | 0 | [9] |
Impairment of Goodwill and Intangible Assets | 0 | 0 | ||||
Segment profit (loss) | $ (118,287) | $ (300,018) | $ 109,205 | |||
U.S. GAAP combined ratio | 113.00% | [10] | 132.00% | [11] | 87.00% | [12] |
Investing [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross premium volume | $ 0 | $ 0 | $ 0 | |||
Net written premiums | 0 | 0 | 0 | |||
Earned premiums | 0 | 0 | ||||
Losses and loss adjustment expenses, current accident year | 0 | 0 | 0 | |||
Losses and loss adjustment expenses, prior accident years | 0 | 0 | 0 | |||
Amortization of policy acquisition costs | 0 | 0 | 0 | |||
Other operating expenses | 0 | 0 | 0 | |||
Underwriting profit (loss) | 0 | 0 | 0 | |||
Net investment income | 433,702 | 405,377 | 373,121 | |||
Net investment gains (losses) | (437,596) | [1] | (5,303) | [2] | 65,147 | [3] |
Products Revenues | 0 | 0 | ||||
Services and other revenues | 0 | 0 | 0 | |||
Products expenses | 0 | [4] | 0 | [5] | 0 | [6] |
Services and other expenses | 0 | [4] | 0 | [5] | 0 | [6] |
Amortization of intangible assets | 0 | [7] | 0 | [8] | 0 | [9] |
Impairment of Goodwill and Intangible Assets | 0 | 0 | ||||
Segment profit (loss) | (3,894) | 400,074 | 438,268 | |||
Markel Ventures [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross premium volume | 0 | 0 | 0 | |||
Net written premiums | 0 | 0 | 0 | |||
Earned premiums | 0 | 0 | ||||
Losses and loss adjustment expenses, current accident year | 0 | 0 | 0 | |||
Losses and loss adjustment expenses, prior accident years | 0 | 0 | 0 | |||
Amortization of policy acquisition costs | 0 | 0 | 0 | |||
Other operating expenses | 0 | 0 | 0 | |||
Underwriting profit (loss) | 0 | 0 | 0 | |||
Net investment income | 513 | 332 | 109 | |||
Net investment gains (losses) | 0 | [1] | 0 | [2] | 0 | [3] |
Products Revenues | 1,497,523 | 951,012 | 885,473 | |||
Services and other revenues | 414,542 | 382,268 | 328,976 | |||
Products expenses | (1,413,248) | [4] | (850,449) | [5] | (755,591) | [6] |
Services and other expenses | (366,739) | [4] | (336,484) | [5] | (297,841) | [6] |
Amortization of intangible assets | (40,208) | [7] | (31,429) | [8] | (29,105) | [9] |
Impairment of Goodwill and Intangible Assets | (14,904) | (18,723) | ||||
Segment profit (loss) | 77,479 | 115,250 | 113,298 | |||
Depreciation expense | (52,200) | [4] | (41,700) | [5] | (35,500) | [6] |
Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross premium volume | 2,064,433 | [13] | 253,658 | [14] | 509 | [15] |
Net written premiums | 520 | [13] | (169) | [14] | 635 | [15] |
Earned premiums | (453) | [13] | (169) | [14] | 762 | [15] |
Losses and loss adjustment expenses, current accident year | 0 | [13] | 0 | [14] | 0 | [15] |
Losses and loss adjustment expenses, prior accident years | 5,742 | [13] | 8,638 | [14] | 10,050 | [15] |
Amortization of policy acquisition costs | 0 | [13] | 0 | [14] | 0 | [15] |
Other operating expenses | (1,941) | [13] | (795) | [14] | (1,061) | [15] |
Underwriting profit (loss) | 3,348 | [13] | 7,674 | [14] | 9,751 | [15] |
Net investment income | 0 | [13] | [14] | [15] | ||
Net investment gains (losses) | 0 | [1],[13] | [2],[14] | [3],[15] | ||
Products Revenues | 0 | [13],[14] | 0 | [15] | ||
Services and other revenues | 220,541 | [13] | 79,995 | [14] | 93,330 | [15] |
Products expenses | 0 | [4],[13] | 0 | [5],[14] | 0 | [6],[15] |
Services and other expenses | (108,185) | [4],[13] | (122,137) | [5],[14] | (118,300) | [6],[15] |
Amortization of intangible assets | (75,722) | [7],[13] | (49,329) | [8],[14] | (39,428) | [9],[15] |
Impairment of Goodwill and Intangible Assets | (184,294) | [13] | 0 | [15] | ||
Segment profit (loss) | $ (144,312) | [13] | $ (83,797) | [14] | $ (54,647) | [15] |
U.S. GAAP combined ratio - not meaniningful | NM | [10],[13],[16] | NM | [11],[14],[17] | NM | [12],[15],[18] |
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment losses within net income. Prior periods have not been restated to conform to the current presentation. See note 1. | |||||
[2] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment losses within net income. Prior periods have not been restated to conform to the current presentation. See note 1. | |||||
[3] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment gains within net income. Prior periods have not been restated to conform to the current presentation. See note 1. | |||||
[4] | Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $52.2 million for the year ended December 31, 2018. | |||||
[5] | Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $41.7 million for the year ended December 31, 2017. | |||||
[6] | Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $35.5 million for the year ended December 31, 2016. | |||||
[7] | Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. | |||||
[8] | Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. | |||||
[9] | Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to any other reportable segments. | |||||
[10] | 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. | |||||
[11] | 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. | |||||
[12] | 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. | |||||
[13] | Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets and impairment of goodwill and intangible assets that are not allocated to a reportable segment. | |||||
[14] | Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets that is not allocated to a reportable segment. | |||||
[15] | Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets and impairment of goodwill and intangible assets that are not allocated to a reportable segment. | |||||
[16] | NM - Ratio is not meaningful | |||||
[17] | NM - Ratio is not meaningful | |||||
[18] | NM - Ratio is not meaningful |
Segment Reporting Disclosures_4
Segment Reporting Disclosures (Summary Of Deferred Policy Acquisition Costs, Unearned Premiums And Unpaid Losses And Loss Adjustment Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||||
Deferred policy acquisition costs | $ 474,513 | $ 465,569 | $ 392,410 | $ 352,756 |
Unearned premiums | 3,611,028 | 3,308,779 | ||
Unpaid losses and loss adjustment expenses | 14,276,479 | 13,584,281 | $ 10,115,662 | |
Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Deferred policy acquisition costs | 315,363 | 286,780 | ||
Unearned premiums | 2,031,140 | 1,855,331 | ||
Unpaid losses and loss adjustment expenses | 7,947,772 | 7,711,510 | ||
Reinsurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Deferred policy acquisition costs | 159,150 | 178,789 | ||
Unearned premiums | 630,435 | 690,565 | ||
Unpaid losses and loss adjustment expenses | 3,425,751 | 3,248,070 | ||
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Deferred policy acquisition costs | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Unpaid losses and loss adjustment expenses | 386,329 | 429,270 | ||
Underwriting Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Deferred policy acquisition costs | 474,513 | 465,569 | ||
Unearned premiums | 2,661,575 | 2,545,896 | ||
Unpaid losses and loss adjustment expenses | 11,759,852 | 11,388,850 | ||
Program Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Deferred policy acquisition costs | 0 | 0 | ||
Unearned premiums | 949,453 | 762,883 | ||
Unpaid losses and loss adjustment expenses | $ 2,516,627 | $ 2,195,431 |
Segment Reporting Disclosures_5
Segment Reporting Disclosures (Summary Of Segment Earned Premiums By Product) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | $ 4,712,060 | $ 4,247,978 | $ 3,865,870 | |||
Insurance [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | 3,783,939 | 3,314,033 | 3,028,844 | |||
Insurance [Member] | General Liability [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | 889,543 | 764,956 | 675,199 | |||
Insurance [Member] | Professional Liability [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | 701,867 | 628,878 | 600,607 | |||
Insurance [Member] | Property [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | 369,116 | 365,513 | 357,320 | |||
Insurance [Member] | Marine And Energy [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | 376,747 | 312,282 | 277,608 | |||
Insurance [Member] | Personal Lines [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | 374,543 | 382,761 | 374,175 | |||
Insurance [Member] | Programs [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | 288,398 | 273,954 | 263,783 | |||
Insurance [Member] | Workers' Compensation [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | 329,690 | 319,679 | 301,126 | |||
Insurance [Member] | Other Products [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | 454,035 | 266,010 | 179,026 | |||
Reinsurance [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | 928,574 | 934,114 | 836,264 | |||
Reinsurance [Member] | Property [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | 233,195 | 321,178 | 288,771 | |||
Reinsurance [Member] | Casualty [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | 417,601 | 351,457 | 327,383 | |||
Reinsurance [Member] | Auto [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | 12,422 | 28,700 | 65,363 | |||
Reinsurance [Member] | Other Products [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | 265,356 | 232,779 | 154,747 | |||
Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Earned premiums | $ (453) | [1] | $ (169) | [2] | $ 762 | [3] |
[1] | Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets and impairment of goodwill and intangible assets that are not allocated to a reportable segment. | |||||
[2] | Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets that is not allocated to a reportable segment. | |||||
[3] | Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets and impairment of goodwill and intangible assets that are not allocated to a reportable segment. |
Segment Reporting Disclosures_6
Segment Reporting Disclosures (Summary Of Gross Written Premiums By Country) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 7,864,469 | $ 5,506,960 | $ 4,796,645 |
Underwriting Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 5,798,996 | $ 5,253,107 | $ 4,796,645 |
Percentage of gross premiums written | 100.00% | 100.00% | 100.00% |
United States [Member] | Underwriting Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 4,587,486 | $ 4,163,753 | $ 3,691,840 |
Percentage of gross premiums written | 79.00% | 79.00% | 77.00% |
United States [Member] | Program Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 2,065,473 | $ 253,853 | $ 0 |
United Kingdom [Member] | Underwriting Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 471,818 | $ 374,941 | $ 358,348 |
Percentage of gross premiums written | 8.00% | 7.00% | 7.00% |
Canada [Member] | Underwriting Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 127,546 | $ 132,018 | $ 125,444 |
Percentage of gross premiums written | 2.00% | 3.00% | 3.00% |
Other Countries [Member] | Underwriting Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 612,146 | $ 582,395 | $ 621,013 |
Percentage of gross premiums written | 11.00% | 11.00% | 13.00% |
Segment Reporting Disclosures_7
Segment Reporting Disclosures (Reconciliation Of Segment Assets To The Company's Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | |||
Assets | $ 33,306,263 | $ 32,805,016 | $ 25,875,299 |
Investing [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | 19,100,790 | 20,317,160 | 19,029,584 |
Underwriting Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | 6,451,984 | 6,828,048 | 5,397,696 |
Markel Ventures [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | 2,124,506 | 1,900,728 | 1,206,223 |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | 5,628,983 | 3,759,080 | 241,796 |
Segment Assets [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 27,677,280 | $ 29,045,936 | $ 25,633,503 |
Products, Services and Other _3
Products, Services and Other Revenues (Schedule Of Revenues From Contracts With Customers By Type) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Other revenues | $ 2,132,606 | $ 1,413,275 | $ 1,307,779 |
Revenue from Contract with Customer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 1,944,667 | 1,305,655 | 1,223,305 |
Markel Ventures Operations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 1,912,065 | 1,333,280 | 1,214,449 |
Markel Ventures Operations [Member] | Revenue from Contract with Customer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 1,819,904 | 1,242,169 | 1,131,866 |
Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 220,541 | 79,995 | 93,330 |
Other [Member] | Revenue from Contract with Customer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 124,763 | 63,486 | 91,439 |
Product [Member] | Revenue from Contract with Customer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 1,452,332 | 902,739 | 843,140 |
Product [Member] | Markel Ventures Operations [Member] | Revenue from Contract with Customer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 1,452,332 | 902,739 | 843,140 |
Product [Member] | Other [Member] | Revenue from Contract with Customer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 0 | 0 | 0 |
Services [Member] | Revenue from Contract with Customer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 400,808 | 374,176 | 323,710 |
Services [Member] | Markel Ventures Operations [Member] | Revenue from Contract with Customer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 367,572 | 339,430 | 288,726 |
Services [Member] | Other [Member] | Revenue from Contract with Customer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 33,236 | 34,746 | 34,984 |
Investment Management [Member] | Revenue from Contract with Customer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 91,527 | 28,740 | 56,455 |
Investment Management [Member] | Markel Ventures Operations [Member] | Revenue from Contract with Customer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 0 | 0 | 0 |
Investment Management [Member] | Other [Member] | Revenue from Contract with Customer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 91,527 | ||
Program Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 94,118 | 14,487 | 0 |
Program Services [Member] | Markel Ventures Operations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 0 | 0 | 0 |
Program Services [Member] | Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 94,118 | 14,487 | 0 |
Other Revenues [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 93,821 | 93,133 | 84,474 |
Other Revenues [Member] | Markel Ventures Operations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | 92,161 | 91,111 | 82,583 |
Other Revenues [Member] | Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | $ 1,660 | $ 2,022 | $ 1,891 |
Products, Services and Other _4
Products, Services and Other Revenues Products, Services and Other Revenues (Receivables And Customer Deposits Related To Contracts With Customers) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other revenue [Line Items] | ||
Receivables | $ 1,692,526 | $ 1,567,453 |
Contracts with Customers [Member] | ||
Other revenue [Line Items] | ||
Receivables | 247,532 | 176,865 |
Customer deposits | $ 48,238 | $ 61,546 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)fundsfund | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses relating to defined contribution plans | $ 41.8 | $ 36.7 | $ 30.1 |
Consecutive number of years | 3 years | ||
Number of years preceding retirement | 10 years | ||
Amortization of the net actuarial pension loss included as a component of accumulated other comprehensive income | $ 2.7 | ||
Percentage of equity securities invested in UK companies | 30.00% | ||
Percentage of equity securities invested in other markets | 70.00% | ||
Number of fixed maturity mutual funds | funds | 5 | ||
Accumulated benefit obligation | $ 168.1 | $ 195.1 | |
Expected plan contributions in 2019 | 3.4 | ||
Expected benefits to be paid in 2019 | 3.8 | ||
Expected benefits to be paid in 2020 | 3.8 | ||
Expected benefits to be paid in 2021 | 3.9 | ||
Expected benefits to be paid in 2022 | 4 | ||
Expected benefits to be paid in 2023 | 4.1 | ||
Aggregate benefits expected to be paid from 2024 to 2028 | $ 22 | ||
United Kingdom [Member] | Foreign Governments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of fixed maturity mutual funds | funds | 2 | ||
United Kingdom [Member] | Corporate Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of fixed maturity mutual funds | funds | 1 | ||
Other Foreign Governments [Member] | Foreign Governments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of fixed maturity mutual funds | funds | 1 | ||
United Kingdom And Other Foreign Governments [Member] | Corporate Bond Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of fixed maturity mutual funds | fund | 1 | ||
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation, percent | 47.00% | ||
Actual asset allocation, percent | 45.00% | 46.00% | |
Fixed Maturities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation, percent | 53.00% | ||
Actual asset allocation, percent | 55.00% | 54.00% |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule Of Amounts Recognized On The Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of period | $ 199,117 | $ 178,618 | |
Interest cost | 4,815 | 5,016 | $ 6,113 |
Benefits paid | (8,045) | (5,644) | |
Actuarial loss | (15,853) | 4,985 | |
Effect of foreign currency rate changes | (8,537) | 16,142 | |
Projected benefit obligation at end of year | 171,497 | 199,117 | 178,618 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 206,570 | 175,644 | |
Actual gain on plan assets | (5,683) | 16,902 | |
Employer contributions | 3,368 | 3,393 | |
Benefits paid | (8,045) | (5,644) | |
Effect of foreign currency rate changes | (9,246) | 16,275 | |
Fair value of plan assets at end of year | 186,964 | 206,570 | $ 175,644 |
Funded status of the plan | 15,467 | 7,453 | |
Net actuarial pension loss | $ 74,604 | $ 77,567 |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of Defined Benefit Plan Amounts Recognized in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Tax benefit (expense) | $ (622) | $ (1,284) | $ 4,192 |
Total other comprehensive income (loss) | (247,590) | 779,705 | 211,358 |
Net Actuarial Pension Loss [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gain (loss) | 0 | 3,728 | (25,243) |
Amortization of net actuarial loss | 2,963 | 3,815 | 1,951 |
Tax benefit (expense) | (622) | (1,284) | 4,192 |
Total other comprehensive income (loss) | $ 2,341 | $ 6,259 | $ (19,100) |
Employee Benefit Plans (Sched_3
Employee Benefit Plans (Schedule Of Net Periodic Benefit Income And Weighted Average Assumptions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan [Abstract] | |||
Interest cost | $ 4,815 | $ 5,016 | $ 6,113 |
Expected return on plan assets | (8,782) | (8,189) | (9,124) |
Amortization of net actuarial pension loss | 2,963 | 3,815 | 1,951 |
Net periodic benefit income (loss) | $ (1,004) | $ 642 | $ (1,060) |
Discount rate | 3.00% | 2.60% | 2.70% |
Expected return on plan assets, percent | 4.50% | 4.50% | 4.50% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary Of Fair Value Of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 186,964 | $ 206,570 | $ 175,644 |
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 186,964 | 206,570 | |
Level 1 [Member] | Fixed Maturities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 102,047 | 110,936 | |
Level 1 [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 84,909 | 95,452 | |
Level 1 [Member] | Cash And Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 8 | $ 182 |
Markel Corporation (Parent Co_3
Markel Corporation (Parent Company Only) Financial Information (Schedule Of Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Fixed maturities, available-for-sale | $ 10,043,188 | $ 9,940,670 | ||
Equity securities, available-for-sale | 0 | 5,967,847 | ||
Equity securities | 5,720,945 | 0 | ||
Short-term investments, available-for-sale (estimated fair value approximates cost) | 1,077,696 | 2,160,974 | ||
Total Investments | 16,841,829 | 18,069,491 | ||
Cash and cash equivalents | 2,014,168 | 2,198,459 | ||
Restricted cash and cash equivalents | 382,264 | 302,387 | ||
Income taxes receivable | 49,300 | 64,300 | ||
Other assets | 1,383,823 | 1,223,365 | ||
Total Assets | 33,306,263 | 32,805,016 | $ 25,875,299 | |
Net deferred tax liability | 446,045 | 505,579 | ||
Other liabilities | 1,796,036 | 1,748,460 | ||
Total Liabilities | 24,031,899 | 23,137,166 | ||
Total Shareholders' Equity | 9,080,653 | 9,504,148 | ||
Total liabilities and equity | 33,306,263 | 32,805,016 | ||
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fixed maturities, available-for-sale | 717,681 | 532,438 | ||
Equity securities, available-for-sale | 0 | 646,060 | ||
Equity securities | [1] | 1,175,120 | 0 | |
Short-term investments, available-for-sale (estimated fair value approximates cost) | 451,499 | 1,159,323 | ||
Total Investments | 2,344,300 | 2,337,821 | ||
Cash and cash equivalents | 263,043 | 349,347 | ||
Restricted cash and cash equivalents | 3,177 | 1,419 | ||
Receivables | 19,295 | 18,684 | ||
Investments in consolidated subsidiaries | 10,697,605 | 9,510,215 | ||
Notes receivable from subsidiaries | 160,111 | 140,110 | ||
Income taxes receivable | 21,174 | 5,704 | ||
Other assets | 135,722 | 121,233 | ||
Total Assets | 13,644,427 | 12,484,533 | ||
Senior long-term debt | 2,539,389 | 2,537,331 | ||
Notes payable to subsidiaries | [2] | 1,895,000 | 285,000 | |
Net deferred tax liability | 64,564 | 84,507 | ||
Other liabilities | 64,820 | 73,547 | ||
Total Liabilities | 4,563,773 | 2,980,385 | ||
Total Shareholders' Equity | 9,080,654 | 9,504,148 | ||
Total liabilities and equity | $ 13,644,427 | $ 12,484,533 | ||
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. | |||
[2] | In December 2018, Markel Corporation purchased Markel Global Reinsurance Company, an indirectly owned subsidiary of Markel Corporation, from Alterra USA Holdings Limited, another indirectly owned subsidiary of Markel Corporation, by issuing a $1.4 billion note payable to subsidiary. |
Markel Corporation (Parent Co_4
Markel Corporation (Parent Company Only) Financial Information (Schedule of Condensed Balance Sheets - Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Financial Statements, Captions [Line Items] | ||
Fixed maturities, amortized cost | $ 9,950,773 | $ 9,551,153 |
Equity securities, available-for-sale, cost | 2,667,661 | |
Equity securities, cost | 2,971,856 | |
Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Fixed maturities, amortized cost | 717,666 | 533,183 |
Equity securities, available-for-sale, cost | $ 402,694 | |
Equity securities, cost | $ 1,117,363 |
Markel Corporation (Parent Co_5
Markel Corporation (Parent Company Only) Financial Information (Schedule Of Condensed Statements Of Income And Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||||||||||||||
Net investment income | $ 434,215 | $ 405,709 | $ 373,230 | ||||||||||||||||||||||||||||
Change in fair value of equity securities | [1] | (425,622) | (44,888) | 16,791 | |||||||||||||||||||||||||||
Net investment gains (losses) | (437,596) | [2] | (5,303) | [3] | 65,147 | [4] | |||||||||||||||||||||||||
Total Operating Revenues | $ 1,042,852 | $ 2,235,949 | $ 1,987,013 | $ 1,575,471 | $ 1,662,267 | $ 1,506,148 | $ 1,481,493 | $ 1,411,751 | $ 1,428,625 | $ 1,431,282 | $ 1,375,937 | $ 1,376,182 | 6,841,285 | 6,061,659 | 5,612,026 | ||||||||||||||||
Services and other expenses | 474,924 | [5] | 458,621 | [6] | 416,141 | [7] | |||||||||||||||||||||||||
Interest expense | 154,212 | 132,451 | 129,896 | ||||||||||||||||||||||||||||
Net foreign exchange gains (losses) | 106,598 | 3,140 | (1,253) | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 0 | 0 | 44,100 | ||||||||||||||||||||||||||||
Total operating expenses | 6,801,526 | 5,845,053 | 4,806,857 | ||||||||||||||||||||||||||||
Income tax benefit | 122,498 | (313,463) | 169,477 | ||||||||||||||||||||||||||||
Net Income (Loss) to Shareholders | (751,543) | [8] | 409,438 | [8] | 278,231 | [8] | (64,306) | [8] | 434,881 | [8] | (259,141) | [8] | 149,660 | [8] | 69,869 | [8] | 132,726 | [8] | 83,796 | [8] | 78,797 | [8] | 160,370 | [8] | (128,180) | [9] | 395,269 | [9] | 455,689 | [9] | |
Net holding gains (losses) arising during the period | (241,325) | 787,339 | 275,661 | ||||||||||||||||||||||||||||
Reclassification adjustments for net gains included in net income to shareholders | 7,849 | (24,296) | (33,528) | ||||||||||||||||||||||||||||
Change in net unrealized gains on available-for-sale investments, net of taxes | (233,476) | 763,043 | 242,168 | ||||||||||||||||||||||||||||
Change in foreign currency translation adjustments, net of taxes | (16,495) | 10,449 | (11,704) | ||||||||||||||||||||||||||||
Total Other Comprehensive Income (Loss) | (247,630) | 779,751 | 211,364 | ||||||||||||||||||||||||||||
Comprehensive Income (Loss) to Shareholders | $ (680,373) | $ 315,106 | $ 164,336 | $ (174,839) | $ 629,247 | $ (19,869) | $ 342,357 | $ 223,239 | $ (29,050) | $ 89,161 | $ 209,942 | $ 396,994 | (375,770) | 1,174,974 | 667,047 | ||||||||||||||||
Parent Company [Member] | |||||||||||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||||||||||||||
Net investment income | 32,631 | 21,076 | 9,561 | ||||||||||||||||||||||||||||
Dividends on common stock of consolidated subsidiaries | 749,171 | 895,920 | 349,622 | ||||||||||||||||||||||||||||
Marketable Securities, Realized Gain (Loss) | (3,341) | 3,383 | 1,068 | ||||||||||||||||||||||||||||
Change in fair value of equity securities | [10] | (110,356) | 0 | 0 | |||||||||||||||||||||||||||
Net investment gains (losses) | (113,697) | 3,383 | 1,068 | ||||||||||||||||||||||||||||
Total Operating Revenues | 668,105 | 920,379 | 360,251 | ||||||||||||||||||||||||||||
Services and other expenses | 6,532 | 11,708 | 13,076 | ||||||||||||||||||||||||||||
Interest expense | 145,681 | 122,151 | 116,013 | ||||||||||||||||||||||||||||
Net foreign exchange gains (losses) | (3,391) | 0 | 0 | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 0 | 0 | 44,100 | ||||||||||||||||||||||||||||
Total operating expenses | 148,822 | 133,859 | 173,189 | ||||||||||||||||||||||||||||
Income before equity in undistributed earnings of consolidated subsidiaries and income taxes | 519,283 | 786,520 | 187,062 | ||||||||||||||||||||||||||||
Equity in undistributed earnings of consolidated subsidiaries | (696,045) | (469,365) | 196,615 | ||||||||||||||||||||||||||||
Income tax benefit | (48,582) | (78,114) | (72,012) | ||||||||||||||||||||||||||||
Net Income (Loss) to Shareholders | (128,180) | 395,269 | 455,689 | ||||||||||||||||||||||||||||
Net holding gains (losses) arising during the period | (1,492) | 52,277 | 37,045 | ||||||||||||||||||||||||||||
Consolidated subsidiaries' net holding gains (losses) arising during the period | (239,833) | 735,062 | 238,616 | ||||||||||||||||||||||||||||
Reclassification adjustments for net gains included in net income to shareholders | 2,564 | (1,513) | (523) | ||||||||||||||||||||||||||||
Consolidated subsidiaries' reclassification adjustments for net gains included in net income to shareholders | 5,285 | (22,783) | (32,970) | ||||||||||||||||||||||||||||
Change in net unrealized gains on available-for-sale investments, net of taxes | (233,476) | 763,043 | 242,168 | ||||||||||||||||||||||||||||
Change in foreign currency translation adjustments, net of taxes | 0 | (2,260) | (1,326) | ||||||||||||||||||||||||||||
Consolidated subsidiaries' change in foreign currency translation adjustments, net of taxes | (16,455) | 12,663 | (10,384) | ||||||||||||||||||||||||||||
Consolidated subsidiaries' change in net actuarial pension loss, net of taxes | 2,341 | 6,259 | (19,100) | ||||||||||||||||||||||||||||
Total Other Comprehensive Income (Loss) | (247,590) | 779,705 | 211,358 | ||||||||||||||||||||||||||||
Comprehensive Income (Loss) to Shareholders | $ (375,770) | $ 1,174,974 | $ 667,047 | ||||||||||||||||||||||||||||
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. Prior to adopting ASU No. 2016-01, the Company recorded certain investments in equity securities at estimated fair value with changes in fair value recorded in net income. | ||||||||||||||||||||||||||||||
[2] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment losses within net income. Prior periods have not been restated to conform to the current presentation. See note 1. | ||||||||||||||||||||||||||||||
[3] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment losses within net income. Prior periods have not been restated to conform to the current presentation. See note 1. | ||||||||||||||||||||||||||||||
[4] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net investment gains within net income. Prior periods have not been restated to conform to the current presentation. See note 1. | ||||||||||||||||||||||||||||||
[5] | Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $52.2 million for the year ended December 31, 2018. | ||||||||||||||||||||||||||||||
[6] | Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $41.7 million for the year ended December 31, 2017. | ||||||||||||||||||||||||||||||
[7] | Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $35.5 million for the year ended December 31, 2016. | ||||||||||||||||||||||||||||||
[8] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. | ||||||||||||||||||||||||||||||
[9] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. | ||||||||||||||||||||||||||||||
[10] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. |
Markel Corporation (Parent Co_6
Markel Corporation (Parent Company Only) Financial Information (Schedule Of Condensed Statements Of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||||||||||
Net Income (Loss) to Shareholders | $ (751,543) | [1] | $ 409,438 | $ 278,231 | $ (64,306) | [1] | $ 434,881 | [1] | $ (259,141) | $ 149,660 | $ 69,869 | [1] | $ 132,726 | [1] | $ 83,796 | $ 78,797 | $ 160,370 | [1] | $ (128,180) | [2] | $ 395,269 | [2] | $ 455,689 | [2] | ||||||
Net Cash Provided By Operating Activities | 892,857 | 858,529 | 534,623 | |||||||||||||||||||||||||||
Proceeds from sales of fixed maturities and equity securities | 419,199 | 577,650 | 365,822 | |||||||||||||||||||||||||||
Proceeds from maturities, calls and prepayments of fixed maturities | 551,808 | 1,129,895 | 963,165 | |||||||||||||||||||||||||||
Cost of fixed maturities and equity securities purchased | (1,545,913) | (1,176,281) | (2,205,939) | |||||||||||||||||||||||||||
Net change in short-term investments | 1,101,636 | 234,743 | (689,194) | |||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (1,175,211) | (1,431,712) | (7,527) | |||||||||||||||||||||||||||
Additions to property and equipment | (106,593) | (74,652) | (63,674) | |||||||||||||||||||||||||||
Other | (42,165) | (4,100) | (1,134) | |||||||||||||||||||||||||||
Net Cash Provided (Used) By Investing Activities | (797,239) | (744,457) | (1,638,481) | |||||||||||||||||||||||||||
Additions to senior long-term debt | 206,949 | 664,657 | 559,300 | |||||||||||||||||||||||||||
Premiums and fees related to early extinguishment of debt | 0 | 0 | (43,691) | |||||||||||||||||||||||||||
Repurchases of common stock | (54,007) | (110,838) | (51,142) | |||||||||||||||||||||||||||
Other | (4,127) | (6,281) | (10,750) | |||||||||||||||||||||||||||
Net Cash Provided (Used) By Financing Activities | (178,985) | 256,315 | 152,019 | |||||||||||||||||||||||||||
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | (104,414) | 415,682 | (984,977) | |||||||||||||||||||||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year | 2,500,846 | 2,085,164 | 3,070,141 | 2,500,846 | 2,085,164 | 3,070,141 | ||||||||||||||||||||||||
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS AT END OF YEAR | 2,396,432 | 2,500,846 | 2,085,164 | 2,396,432 | 2,500,846 | 2,085,164 | ||||||||||||||||||||||||
Parent Company [Member] | ||||||||||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||||||||||
Net Income (Loss) to Shareholders | (128,180) | 395,269 | 455,689 | |||||||||||||||||||||||||||
Adjustments to reconcile net income (loss) to shareholders to net cash provided (used) by operating activities | 3,637 | (166,132) | (120,564) | |||||||||||||||||||||||||||
Net Cash Provided By Operating Activities | (124,543) | 229,137 | 335,125 | |||||||||||||||||||||||||||
Proceeds from sales of fixed maturities and equity securities | 204,478 | 20,562 | 1,831 | |||||||||||||||||||||||||||
Proceeds from maturities, calls and prepayments of fixed maturities | 34,560 | 64,705 | 11,960 | |||||||||||||||||||||||||||
Cost of fixed maturities and equity securities purchased | (26,336) | (72,910) | (29,110) | |||||||||||||||||||||||||||
Net change in short-term investments | 930,876 | 649,181 | (731,389) | |||||||||||||||||||||||||||
Return of capital from subsidiaries | 12,712 | 45,225 | 21,021 | |||||||||||||||||||||||||||
Decrease (increase) in notes receivable due from subsidiaries | (20,000) | (58) | 92,530 | |||||||||||||||||||||||||||
Capital contributions to subsidiaries | (103,133) | (270,623) | 0 | |||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (972,619) | (1,153,683) | 0 | |||||||||||||||||||||||||||
Cost of equity method investments | (5,117) | (10,633) | (3,100) | |||||||||||||||||||||||||||
Additions to property and equipment | (3,191) | 0 | (584) | |||||||||||||||||||||||||||
Other | (5,261) | 6,972 | (3,207) | |||||||||||||||||||||||||||
Net Cash Provided (Used) By Investing Activities | 46,969 | (721,262) | (640,048) | |||||||||||||||||||||||||||
Additions to senior long-term debt | 0 | 592,923 | 493,149 | |||||||||||||||||||||||||||
IncreaseDecreaseInNotesPayableFromSubsidiaries | 47,105 | 0 | 0 | |||||||||||||||||||||||||||
Repayment and retirement of senior long-term debt | 0 | 0 | (183,343) | |||||||||||||||||||||||||||
Premiums and fees related to early extinguishment of debt | 0 | 0 | (43,691) | |||||||||||||||||||||||||||
Repurchases of common stock | (54,007) | (110,838) | (51,142) | |||||||||||||||||||||||||||
Other | (70) | (9,848) | (337) | |||||||||||||||||||||||||||
Net Cash Provided (Used) By Financing Activities | (6,972) | 472,237 | 214,636 | |||||||||||||||||||||||||||
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | (84,546) | (19,888) | (90,287) | |||||||||||||||||||||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year | $ 350,766 | $ 370,654 | $ 460,941 | 350,766 | 370,654 | 460,941 | ||||||||||||||||||||||||
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS AT END OF YEAR | $ 266,220 | $ 350,766 | $ 370,654 | $ 266,220 | $ 350,766 | $ 370,654 | ||||||||||||||||||||||||
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. | |||||||||||||||||||||||||||||
[2] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. |
Quarterly Financial Informati_3
Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||
Operating revenues | $ 1,042,852 | $ 2,235,949 | $ 1,987,013 | $ 1,575,471 | $ 1,662,267 | $ 1,506,148 | $ 1,481,493 | $ 1,411,751 | $ 1,428,625 | $ 1,431,282 | $ 1,375,937 | $ 1,376,182 | $ 6,841,285 | $ 6,061,659 | $ 5,612,026 | |||||||||||||||
Net income (loss) | (753,374) | [1] | 409,028 | [1] | 279,587 | [1] | (65,594) | [1] | 439,326 | [1] | (261,035) | [1] | 151,427 | [1] | 71,040 | [1] | 132,703 | [1] | 83,421 | [1] | 80,673 | [1] | 163,646 | [1] | (130,353) | 400,758 | 460,443 | |||
Net income (loss) to shareholders | (751,543) | [1] | 409,438 | [1] | 278,231 | [1] | (64,306) | [1] | 434,881 | [1] | (259,141) | [1] | 149,660 | [1] | 69,869 | [1] | 132,726 | [1] | 83,796 | [1] | 78,797 | [1] | 160,370 | [1] | (128,180) | [2] | 395,269 | [2] | 455,689 | [2] |
Comprehensive income (loss) to shareholders | $ (680,373) | $ 315,106 | $ 164,336 | $ (174,839) | $ 629,247 | $ (19,869) | $ 342,357 | $ 223,239 | $ (29,050) | $ 89,161 | $ 209,942 | $ 396,994 | $ (375,770) | $ 1,174,974 | $ 667,047 | |||||||||||||||
Basic net income (loss) per share (dollars per share) | $ (53.88) | $ 28.56 | $ 20.01 | $ (4.25) | $ 30.48 | $ (18.82) | $ 10.34 | $ 3.91 | $ 9.14 | $ 5.62 | $ 5.44 | $ 11.21 | $ (9.55) | $ 25.89 | $ 31.41 | |||||||||||||||
Diluted net income (loss) per share (dollars per share) | $ (53.88) | $ 28.50 | $ 19.97 | $ (4.25) | $ 30.39 | $ (18.82) | $ 10.31 | $ 3.90 | $ 9.11 | $ 5.60 | $ 5.41 | $ 11.15 | $ (9.55) | [3] | $ 25.81 | [3] | $ 31.27 | [3] | ||||||||||||
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the change in fair value of equity securities is no longer recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. | |||||||||||||||||||||||||||||
[2] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income, rather, changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 1. | |||||||||||||||||||||||||||||
[3] | The impact of restricted stock units and restricted stock of 25 thousand shares was excluded from the computation of diluted earnings per share for the year ended December 31, 2018 because the effect would have been anti-dilutive. |
Uncategorized Items - mkl-20181
Label | Element | Value |
Noncontrolling Interest [Member] | ||
Cumulative Effect of Adoption of ASU No. 2016-01, Net of Tax | mkl_CumulativeEffectofAdoptionofASUNo.201601NetofTax | $ 0 |
Cumulative Effect of Adoption of ASU No 2014-09, Net of Taxes | mkl_CumulativeEffectofAdoptionofASUNo201409NetofTaxes | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (2,567,000) |
Cumulative Effect of Adoption of ASU No 2018-02 | mkl_CumulativeEffectofAdoptionofASUNo201802 | 0 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of Adoption of ASU No. 2016-01, Net of Tax | mkl_CumulativeEffectofAdoptionofASUNo.201601NetofTax | (2,595,484,000) |
Cumulative Effect of Adoption of ASU No 2014-09, Net of Taxes | mkl_CumulativeEffectofAdoptionofASUNo201409NetofTaxes | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 152,940,000 |
Cumulative Effect of Adoption of ASU No 2018-02 | mkl_CumulativeEffectofAdoptionofASUNo201802 | 402,853,000 |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 3,381,834,000 |
Shares, Issued | us-gaap_SharesIssued | 13,904,000 |
Parent [Member] | ||
Cumulative Effect of Adoption of ASU No. 2016-01, Net of Tax | mkl_CumulativeEffectofAdoptionofASUNo.201601NetofTax | $ 0 |
Cumulative Effect of Adoption of ASU No 2014-09, Net of Taxes | mkl_CumulativeEffectofAdoptionofASUNo201409NetofTaxes | 325,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 9,504,473,000 |
Cumulative Effect of Adoption of ASU No 2018-02 | mkl_CumulativeEffectofAdoptionofASUNo201802 | 0 |
Retained Earnings [Member] | ||
Cumulative Effect of Adoption of ASU No. 2016-01, Net of Tax | mkl_CumulativeEffectofAdoptionofASUNo.201601NetofTax | 2,595,484,000 |
Cumulative Effect of Adoption of ASU No 2014-09, Net of Taxes | mkl_CumulativeEffectofAdoptionofASUNo201409NetofTaxes | 325,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 5,969,699,000 |
Cumulative Effect of Adoption of ASU No 2018-02 | mkl_CumulativeEffectofAdoptionofASUNo201802 | (402,853,000) |
Redeemable Noncontrolling Interests, Temporary Equity [Member] | ||
Cumulative Effect of Adoption of ASU No. 2016-01, Net of Tax | mkl_CumulativeEffectofAdoptionofASUNo.201601NetofTax | 0 |
Cumulative Effect of Adoption of ASU No 2014-09, Net of Taxes | mkl_CumulativeEffectofAdoptionofASUNo201409NetofTaxes | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 166,269,000 |
Cumulative Effect of Adoption of ASU No 2018-02 | mkl_CumulativeEffectofAdoptionofASUNo201802 | 0 |
Total Equity [Member] | ||
Cumulative Effect of Adoption of ASU No. 2016-01, Net of Tax | mkl_CumulativeEffectofAdoptionofASUNo.201601NetofTax | 0 |
Cumulative Effect of Adoption of ASU No 2014-09, Net of Taxes | mkl_CumulativeEffectofAdoptionofASUNo201409NetofTaxes | 325,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 9,501,906,000 |
Cumulative Effect of Adoption of ASU No 2018-02 | mkl_CumulativeEffectofAdoptionofASUNo201802 | $ 0 |