Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 30, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-15202 | |
Entity Registrant Name | W. R. BERKLEY CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-1867895 | |
Entity Address, Address Line One | 475 Steamboat Road | |
Entity Address, City or Town | Greenwich | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06830 | |
City Area Code | (203) | |
Local Phone Number | 629-3000 | |
Title of 12(b) Security | Common Stock, par value $.20 per share | |
Trading Symbol | WRB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 183,176,414 | |
Entity Central Index Key | 0000011544 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
5.625% Subordinated Debentures due 2053 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.625% Subordinated Debentures due 2053 | |
Trading Symbol | WRB B | |
Security Exchange Name | NYSE | |
5.9% Subordinated Debentures due 2056 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.9% Subordinated Debentures due 2056 | |
Trading Symbol | WRB C | |
Security Exchange Name | NYSE | |
5.75% Subordinated Debentures due 2056 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.75% Subordinated Debentures due 2056 | |
Trading Symbol | WRB D | |
Security Exchange Name | NYSE | |
5.70% Subordinated Debentures due 2058 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.70% Subordinated Debentures due 2058 | |
Trading Symbol | WRB E | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturity securities | $ 13,732,800 | $ 13,606,812 |
Real estate | 2,067,544 | 1,957,092 |
Investment funds | 1,401,571 | 1,332,818 |
Arbitrage trading account | 533,442 | 452,548 |
Equity securities | 416,588 | 279,006 |
Loans receivable | 94,697 | 94,813 |
Total investments | 18,246,642 | 17,723,089 |
Cash and cash equivalents | 1,258,174 | 817,602 |
Premiums and fees receivable | 2,034,036 | 1,807,762 |
Due from reinsurers | 2,040,250 | 1,932,291 |
Deferred policy acquisition costs | 520,908 | 497,629 |
Prepaid reinsurance premiums | 538,358 | 498,880 |
Trading account receivables from brokers and clearing organizations | 402,361 | 347,228 |
Property, furniture and equipment | 398,885 | 416,372 |
Goodwill | 173,037 | 173,037 |
Accrued investment income | 140,864 | 144,481 |
Federal and foreign income taxes | 0 | 36,193 |
Other assets | 734,388 | 501,413 |
Total assets | 26,487,903 | 24,895,977 |
Liabilities: | ||
Reserves for losses and loss expenses | 12,320,278 | 11,966,448 |
Unearned premiums | 3,614,152 | 3,359,991 |
Due to reinsurers | 294,949 | 256,917 |
Trading account securities sold but not yet purchased | 159,349 | 38,120 |
Federal and foreign income taxes | 38,437 | 0 |
Other liabilities | 1,258,995 | 1,005,184 |
Senior notes and other debt | 1,873,799 | 1,882,028 |
Subordinated debentures | 907,866 | 907,491 |
Total liabilities | 20,467,825 | 19,416,179 |
Equity: | ||
Perferred stock, par value $.10 per share: Authorized 5,000,000 shares; issued and outstanding - none | 0 | 0 |
Common stock, par value $.20 per share: Authorized 500,000,000 shares, issued and outstanding, net of treasury shares, 121,716,402 and 121,514,852 shares, respectively | 70,535 | 70,535 |
Additional paid-in capital | 1,058,416 | 1,039,633 |
Retained earnings | 7,826,015 | 7,558,619 |
Accumulated other comprehensive loss | (260,796) | (510,470) |
Treasury stock, at cost, 169,508,366 and 169,683,237 shares, respectively | (2,717,410) | (2,720,466) |
Total stockholders’ equity | 5,976,760 | 5,437,851 |
Noncontrolling interests | 43,318 | 41,947 |
Total equity | 6,020,078 | 5,479,798 |
Total liabilities and equity | $ 26,487,903 | $ 24,895,977 |
Consolidated Balance Sheets C_2
Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock issued (in shares) | 5,000,000 | 5,000,000 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollar per share) | $ 0.2 | $ 0.2 |
Common shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common shares issued (in shares) | 183,168,398 | 182,993,640 |
Common shares outstanding (in shares) | 183,168,398 | 182,993,640 |
Treasury stock issued at cost (in shares) | 169,508,366 | 169,683,237 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
REVENUES: | ||||
Net premiums written | $ 1,743,464 | $ 1,624,104 | $ 3,453,065 | $ 3,289,442 |
Change in net unearned premiums | (96,623) | (43,051) | (213,368) | (140,981) |
Net premiums earned | 1,646,841 | 1,581,053 | 3,239,697 | 3,148,461 |
Net investment income | 188,333 | 153,777 | 346,587 | 328,295 |
Net realized and unrealized gains on investments | 73,574 | 69,631 | 142,226 | 118,095 |
Revenues from non-insurance businesses | 89,297 | 76,698 | 181,124 | 146,869 |
Insurance service fees | 22,446 | 29,719 | 47,759 | 60,393 |
Other income | 2,893 | 38 | 3,013 | 50 |
Total revenues | 2,023,384 | 1,910,916 | 3,960,406 | 3,802,163 |
OPERATING COSTS AND EXPENSES: | ||||
Losses and loss expenses | 1,028,830 | 973,636 | 2,017,479 | 1,936,856 |
Other operating costs and expenses | 591,828 | 593,142 | 1,179,916 | 1,203,581 |
Expenses from non-insurance businesses | 88,272 | 75,191 | 178,397 | 144,734 |
Interest expense | 40,718 | 39,705 | 81,439 | 76,760 |
Total operating costs and expenses | 1,749,648 | 1,681,674 | 3,457,231 | 3,361,931 |
Income before income taxes | 273,736 | 229,242 | 503,175 | 440,232 |
Income tax expense | (56,309) | (48,464) | (104,134) | (91,881) |
Net income before noncontrolling interests | 217,427 | 180,778 | 399,041 | 348,351 |
Noncontrolling interests | (718) | (703) | (1,610) | (1,879) |
Net income to common stockholders | $ 216,709 | $ 180,075 | $ 397,431 | $ 346,472 |
NET INCOME PER SHARE: | ||||
Basic (in dollar per share) | $ 1.14 | $ 0.95 | $ 2.09 | $ 1.83 |
Diluted (in dollar per share) | $ 1.12 | $ 0.93 | $ 2.06 | $ 1.80 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income before noncontrolling interests | $ 217,427 | $ 180,778 | $ 399,041 | $ 348,351 |
Other comprehensive income (loss): | ||||
Change in unrealized currency translation adjustments | (14,492) | (104,455) | 5,268 | (91,656) |
Change in unrealized investment gains (losses), net of taxes | 118,649 | (32,442) | 244,424 | (158,214) |
Other comprehensive income (loss) | 104,157 | (136,897) | 249,692 | (249,870) |
Comprehensive income | 321,584 | 43,881 | 648,733 | 98,481 |
Noncontrolling interests | (748) | (666) | (1,592) | (1,853) |
Comprehensive income to common stockholders | $ 320,836 | $ 43,215 | $ 647,141 | $ 96,628 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated Other Comprehensive Income (Loss) | Unrealized investment gain | Currency Translation Adjustments | Treasury stock | Noncontrolling interest |
Beginning of period at Dec. 31, 2017 | $ 70,535 | $ 1,024,771 | $ 6,956,882 | $ 68,541 | $ 375,421 | $ (306,880) | $ (2,709,386) | $ 39,819 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Restricted stock units issued | (5,642) | ||||||||
Restricted stock units expensed | 17,667 | ||||||||
Cumulative effect adjustment resulting from changes in accounting principles | 215,939 | (214,539) | |||||||
Net income before noncontrolling interests | $ 348,351 | 346,472 | 1,879 | ||||||
Dividends ($0.61, $0.43, $0.71 and $0.53 per share, respectively) | (96,131) | ||||||||
Change in unrealized gains (losses) on securities not other-than-temporarily impaired | (158,214) | (158,199) | |||||||
Change in unrealized gains (losses) on other-than-temporarily impaired securities | 11 | ||||||||
Net change in period | (91,656) | (91,656) | |||||||
Stock exercised/vested | 6,963 | ||||||||
Stock repurchased | (6,799) | ||||||||
Stock issued | 688 | ||||||||
Distributions | (2,162) | ||||||||
Other comprehensive income (loss), net of tax | $ (249,870) | (249,870) | (91,656) | (26) | |||||
End of period at Jun. 30, 2018 | 1,036,796 | 7,423,162 | (395,842) | 2,694 | (398,536) | (2,708,534) | 39,510 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock dividends, per share, cash paid (in dollars per share) | $ 0.53 | ||||||||
Beginning of period at Mar. 31, 2018 | 70,535 | 1,033,718 | 7,322,201 | (258,982) | 35,099 | (294,081) | (2,715,697) | 40,404 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Restricted stock units issued | (5,155) | ||||||||
Restricted stock units expensed | 8,233 | ||||||||
Cumulative effect adjustment resulting from changes in accounting principles | 0 | 0 | |||||||
Net income before noncontrolling interests | $ 180,778 | 180,075 | 703 | ||||||
Dividends ($0.61, $0.43, $0.71 and $0.53 per share, respectively) | (79,114) | ||||||||
Change in unrealized gains (losses) on securities not other-than-temporarily impaired | (32,442) | (32,403) | |||||||
Change in unrealized gains (losses) on other-than-temporarily impaired securities | (2) | ||||||||
Net change in period | (104,455) | (104,455) | |||||||
Stock exercised/vested | 6,475 | ||||||||
Stock repurchased | 0 | ||||||||
Stock issued | 688 | ||||||||
Distributions | (1,560) | ||||||||
Other comprehensive income (loss), net of tax | $ (136,897) | (136,897) | (104,455) | (37) | |||||
End of period at Jun. 30, 2018 | 1,036,796 | 7,423,162 | (395,842) | 2,694 | (398,536) | (2,708,534) | 39,510 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock dividends, per share, cash paid (in dollars per share) | $ 0.43 | ||||||||
Beginning of period at Dec. 31, 2018 | $ 5,479,798 | 70,535 | 1,039,633 | 7,558,619 | (510,470) | (91,491) | (418,979) | (2,720,466) | 41,947 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Restricted stock units issued | (2,504) | ||||||||
Restricted stock units expensed | 21,287 | ||||||||
Cumulative effect adjustment resulting from changes in accounting principles | 0 | 0 | |||||||
Net income before noncontrolling interests | 399,041 | 397,431 | 1,610 | ||||||
Dividends ($0.61, $0.43, $0.71 and $0.53 per share, respectively) | (130,035) | ||||||||
Change in unrealized gains (losses) on securities not other-than-temporarily impaired | 244,424 | 244,393 | |||||||
Change in unrealized gains (losses) on other-than-temporarily impaired securities | 13 | ||||||||
Net change in period | 5,268 | 5,268 | |||||||
Stock exercised/vested | 2,504 | ||||||||
Stock repurchased | 0 | ||||||||
Stock issued | 552 | ||||||||
Distributions | (221) | ||||||||
Other comprehensive income (loss), net of tax | 249,692 | 249,692 | 5,268 | (18) | |||||
End of period at Jun. 30, 2019 | $ 6,020,078 | 1,058,416 | 7,826,015 | (260,796) | 152,915 | (413,711) | (2,717,410) | 43,318 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock dividends, per share, cash paid (in dollars per share) | $ 0.71 | ||||||||
Beginning of period at Mar. 31, 2019 | $ 70,535 | 1,053,372 | 7,721,039 | (364,983) | 34,236 | (399,219) | (2,720,011) | 42,844 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Restricted stock units issued | (2,049) | ||||||||
Restricted stock units expensed | 7,093 | ||||||||
Cumulative effect adjustment resulting from changes in accounting principles | 0 | 0 | |||||||
Net income before noncontrolling interests | $ 217,427 | 216,709 | 718 | ||||||
Dividends ($0.61, $0.43, $0.71 and $0.53 per share, respectively) | (111,733) | ||||||||
Change in unrealized gains (losses) on securities not other-than-temporarily impaired | 118,649 | 118,597 | |||||||
Change in unrealized gains (losses) on other-than-temporarily impaired securities | 82 | ||||||||
Net change in period | (14,492) | (14,492) | |||||||
Stock exercised/vested | 2,049 | ||||||||
Stock repurchased | 0 | ||||||||
Stock issued | 552 | ||||||||
Distributions | (274) | ||||||||
Other comprehensive income (loss), net of tax | 104,157 | 104,157 | (14,492) | 30 | |||||
End of period at Jun. 30, 2019 | $ 6,020,078 | $ 1,058,416 | $ 7,826,015 | $ (260,796) | $ 152,915 | $ (413,711) | $ (2,717,410) | $ 43,318 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock dividends, per share, cash paid (in dollars per share) | $ 0.61 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FROM OPERATING ACTIVITIES: | ||
Net income to common stockholders | $ 397,431 | $ 346,472 |
Adjustments to reconcile net income to net cash from (used in) operating activities: | ||
Net realized and unrealized gains on investments | (142,226) | (118,095) |
Depreciation and amortization | 51,289 | 56,372 |
Noncontrolling interests | 1,610 | 1,879 |
Investment funds | (58,251) | (53,070) |
Stock incentive plans | 27,340 | 19,722 |
Change in: | ||
Arbitrage trading account | (14,797) | (7,871) |
Premiums and fees receivable | (223,771) | (152,832) |
Reinsurance accounts | (112,681) | (77,140) |
Deferred policy acquisition costs | (23,632) | (11,152) |
Income taxes | 2,759 | (39,069) |
Reserves for losses and loss expenses | 350,981 | 123,582 |
Unearned premiums | 254,010 | 171,468 |
Other | (107,416) | (140,904) |
Net cash from operating activities | 402,646 | 119,362 |
CASH FROM (USED IN) INVESTING ACTIVITIES: | ||
Proceeds from sale of fixed maturity securities | 1,320,079 | 2,773,554 |
Proceeds from sale of equity securities | 39,103 | 284,204 |
Contributions to investment funds | (2,896) | (4,996) |
Proceeds from maturities and prepayments of fixed maturity securities | 1,490,772 | 1,305,805 |
Purchase of fixed maturity securities | (2,633,251) | (4,062,901) |
Purchase of equity securities | (41,849) | (87,059) |
Real estate purchased | (117,773) | (419,021) |
Change in loans receivable | 140 | (16,310) |
Net additions to property, furniture and equipment | (10,804) | (29,704) |
Change in balances due to security brokers | 19,096 | 46,641 |
Payment for business purchased net of cash acquired | 0 | 6,637 |
Net cash from (used in) investing activities | 62,617 | (216,424) |
CASH (USED IN) FROM FINANCING ACTIVITIES: | ||
Repayment of senior notes and other debt | 0 | (23) |
Net proceeds from issuance of debt | 0 | 200,838 |
Cash dividends to common stockholders | (18,302) | (77,873) |
Purchase of common treasury shares | 0 | (6,799) |
Other, net | (5,548) | (1,763) |
Net cash (used in) from financing activities | (23,850) | 114,380 |
Net impact on cash due to change in foreign exchange rates | (841) | (56,587) |
Net change in cash and cash equivalents | 440,572 | (39,269) |
Cash and cash equivalents at beginning of year | 817,602 | 950,471 |
Cash and cash equivalents at end of period | $ 1,258,174 | $ 911,202 |
General
General | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The unaudited consolidated financial statements, which include the accounts of W. R. Berkley Corporation and its subsidiaries (the “Company”) have been prepared on the basis of U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all the information and notes required by GAAP for annual financial statements. The unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring items, which are necessary to present fairly the Company’s financial position and results of operations on a basis consistent with the prior audited consolidated financial statements. Operating results for interim periods are not necessarily indicative of the results that may be expected for the year. All significant intercompany accounts and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the revenues and expenses reflected during the reporting period. For further information related to areas of judgment and estimates and other information necessary to understand the Company’s financial position and results of operations, refer to the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Reclassifications have been made in the 2018 financial statements as originally reported to conform to the presentation of the 2019 financial statements. Shares outstanding and per share amounts have been adjusted to reflect the 3-for-2 common stock split effected on April 2, 2019. Additionally, commencing with the first quarter of 2019, the Company renamed the Reinsurance segment to Reinsurance & Monoline Excess, and reclassified the monoline excess business from the Insurance segment. The reclassified business includes operations that solely retain risk on an excess basis. The income tax provision has been computed based on the Company’s estimated annual effective tax rate. The effective tax rate for the quarter differs from the federal income tax rate of 21% principally because of tax-exempt investment income, as well as tax on income from foreign jurisdictions with different tax rates. |
Per Share Data
Per Share Data | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Per Share Data | Per Share Data The Company presents both basic and diluted net income per share (“EPS”) amounts. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period (including 7,389,781 and 7,270,954 common shares held in a grantor trust as of June 30, 2019 and 2018 , respectively). The common shares held in the grantor trust are for delivery upon settlement of vested but mandatorily deferred restricted stock units ("RSUs"). Shares held by the grantor trust do not affect diluted shares outstanding since the shares deliverable under vested RSUs were already included in diluted shares outstanding. Diluted EPS is based upon the weighted average number of basic and common equivalent shares outstanding during the period and is calculated using the treasury stock method for stock incentive plans. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect. The weighted average number of common shares used in the computation of basic and diluted earnings per share was as follows: For the Three Months For the Six Months (In thousands) 2019 2018 2019 2018 Basic 190,512 189,776 190,456 189,669 Diluted 193,059 192,509 192,804 192,284 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently adopted accounting pronouncements: In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases, which amends the accounting and disclosure guidance for leases. This guidance retains the two classifications of a lease, as either an operating or finance lease, both of which require lessees to recognize a right-of-use asset and a lease liability for leases with terms of more than 12 months. The right-of-use asset and the lease liability are determined based upon the present value of cash flows. Finance leases reflect the financial arrangement by recognizing interest expense on the lease liability separately from the amortization expense of the right-of-use asset. Operating leases recognize lease expense (with no separate recognition of interest expense) on a straight-line basis over the term of the lease. The accounting by lessors is not significantly changed by the updated guidance. The updated guidance was effective for reporting periods beginning after December 15, 2018. As permitted by the rules, the Company adopted the new guidance prospectively for the quarter ended March 31, 2019. The Company elected to use the practical expedient permitted by the transition guidance which allowed companies to not reassess existing lease classifications for already effective leases. The adoption of this guidance resulted in the recognition of a right-of-use asset of $ 185 million and a lease liability of $ 215 million (prior to adoption the Company had a $ 30 million deferred rent liability recognized) reported within other assets and other liabilities, respectively, in the consolidated balance sheet. The adoption of this guidance did not have an impact on the Company's results of operations or liquidity. All other accounting and reporting standards that have become effective in 2019 were either not applicable to the Company or their adoption did not have a material impact on the Company. Accounting and reporting standards that are not yet effective: In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which amends the accounting guidance for credit losses on financial instruments. The updated guidance amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. This guidance also applies a new current expected credit loss model for determining credit-related impairments for financial instruments measured at amortized cost, such as reinsurance recoverables. The updated guidance is effective for reporting periods beginning after December 15, 2019. The Company will not be able to determine the impact the adoption of this guidance will have on its results of operations, financial position or liquidity until the year the guidance becomes effective. All other recently issued but not yet effective accounting and reporting standards are either not applicable to the Company or are not expected to have a material impact on the Company. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Consolidated Statements of Comprehensive Income | Consolidated Statement of Comprehensive Income The following table presents the components of the changes in accumulated other comprehensive (loss) income ("AOCI"): (In thousands) Unrealized Investment Gains (Losses) Currency Translation Adjustments Accumulated Other Comprehensive (Loss) Income As of and for the six months ended June 30, 2019 Changes in AOCI Beginning of period $ (91,491 ) $ (418,979 ) $ (510,470 ) Other comprehensive income before reclassifications 245,615 5,268 250,883 Amounts reclassified from AOCI (1,191 ) — (1,191 ) Other comprehensive income 244,424 5,268 249,692 Unrealized investment loss related to noncontrolling interest (18 ) — (18 ) End of period $ 152,915 $ (413,711 ) $ (260,796 ) Amounts reclassified from AOCI Pre-tax $ (1,508 ) (1) $ — $ (1,508 ) Tax effect 317 (2) — 317 After-tax amounts reclassified $ (1,191 ) $ — $ (1,191 ) Other comprehensive income Pre-tax $ 316,331 $ 5,268 $ 321,599 Tax effect (71,907 ) — (71,907 ) Other comprehensive income $ 244,424 $ 5,268 $ 249,692 As of and for the three months ended June 30, 2019 Changes in AOCI Beginning of period $ 34,236 $ (399,219 ) $ (364,983 ) Other comprehensive income (loss) before reclassifications 118,475 (14,492 ) 103,983 Amounts reclassified from AOCI 174 — 174 Other comprehensive income (loss) 118,649 (14,492 ) 104,157 Unrealized investment losses related to noncontrolling interest 30 — 30 Ending balance $ 152,915 $ (413,711 ) $ (260,796 ) Amounts reclassified from AOCI Pre-tax $ 220 (1) $ — $ 220 Tax effect (46 ) (2) — (46 ) After-tax amounts reclassified $ 174 $ — $ 174 Other comprehensive income (loss) Pre-tax $ 147,072 $ (14,492 ) $ 132,580 Tax effect (28,423 ) — (28,423 ) Other comprehensive income (loss) $ 118,649 $ (14,492 ) $ 104,157 _________________________ (1) Net realized and unrealized gains on investments in the consolidated statements of income. (2) Income tax expense in the consolidated statements of income. (In thousands) Unrealized Investment Gains (Losses) Currency Translation Adjustments Accumulated Other Comprehensive (Loss) Income As of and for the six months ended June 30, 2018 Changes in AOCI Beginning of period $ 375,421 $ (306,880 ) $ 68,541 Cumulative effect adjustment resulting from changes in accounting principles (214,539 ) — (214,539 ) Restated beginning of period 160,882 (306,880 ) (145,998 ) Other comprehensive loss before reclassifications (147,632 ) (91,656 ) (239,288 ) Amounts reclassified from AOCI (10,582 ) — (10,582 ) Other comprehensive loss (158,214 ) (91,656 ) (249,870 ) Unrealized investment loss related to noncontrolling interest 26 — 26 End of period $ 2,694 $ (398,536 ) $ (395,842 ) Amounts reclassified from AOCI Pre-tax $ (13,395 ) (1) $ — $ (13,395 ) Tax effect 2,813 (2) — 2,813 After-tax amounts reclassified $ (10,582 ) $ — $ (10,582 ) Other comprehensive loss Pre-tax $ (201,336 ) $ (91,656 ) $ (292,992 ) Tax effect 43,122 — 43,122 Other comprehensive loss $ (158,214 ) $ (91,656 ) $ (249,870 ) As of and for the three months ended June 30, 2018 Changes in AOCI Beginning of period $ 35,099 $ (294,081 ) $ (258,982 ) Other comprehensive loss before reclassifications (29,443 ) (104,455 ) (133,898 ) Amounts reclassified from AOCI (2,999 ) — (2,999 ) Other comprehensive loss (32,442 ) (104,455 ) (136,897 ) Unrealized investment loss related to noncontrolling interest 37 — 37 Ending balance $ 2,694 $ (398,536 ) $ (395,842 ) Amounts reclassified from AOCI Pre-tax $ (3,796 ) (1) $ — $ (3,796 ) Tax effect 797 (2) — 797 After-tax amounts reclassified $ (2,999 ) $ — $ (2,999 ) Other comprehensive loss Pre-tax $ (40,488 ) $ (104,455 ) $ (144,943 ) Tax effect 8,046 — 8,046 Other comprehensive loss $ (32,442 ) $ (104,455 ) $ (136,897 ) _________________________ (1) Net realized and unrealized gains on investments in the consolidated statements of income. (2) Income tax expense in the consolidated statements of income. |
Statements of Cash Flow
Statements of Cash Flow | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Statements of Cash Flow | Statements of Cash Flows Interest payments were $77,672,000 and $72,878,000 and income taxes paid were $82,800,000 and $111,000,000 for the six months ended June 30, 2019 and 2018 |
Investments In Fixed Maturity S
Investments In Fixed Maturity Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments In Fixed Maturity Securities | Investments in Fixed Maturity Securities At June 30, 2019 and December 31, 2018 , investments in fixed maturity securities were as follows: (In thousands) Amortized Cost Gross Unrealized Fair Value Carrying Value Gains Losses June 30, 2019 Held to maturity: State and municipal $ 69,167 $ 13,089 $ — $ 82,256 $ 69,167 Residential mortgage-backed 9,380 1,083 — 10,463 9,380 Total held to maturity 78,547 14,172 — 92,719 78,547 Available for sale: U.S. government and government agency 760,247 18,241 (1,418 ) 777,070 777,070 State and municipal: Special revenue 2,322,750 63,204 (2,674 ) 2,383,280 2,383,280 State general obligation 320,338 22,108 (43 ) 342,403 342,403 Pre-refunded 298,825 19,876 (122 ) 318,579 318,579 Corporate backed 238,319 7,065 (639 ) 244,745 244,745 Local general obligation 427,233 32,026 (443 ) 458,816 458,816 Total state and municipal 3,607,465 144,279 (3,921 ) 3,747,823 3,747,823 Mortgage-backed securities: Residential (1) 1,242,880 28,521 (5,316 ) 1,266,085 1,266,085 Commercial 303,332 6,829 (380 ) 309,781 309,781 Total mortgage-backed securities 1,546,212 35,350 (5,696 ) 1,575,866 1,575,866 Asset-backed 2,719,618 9,874 (27,707 ) 2,701,785 2,701,785 Corporate: Industrial 2,178,339 59,623 (7,755 ) 2,230,207 2,230,207 Financial 1,431,612 27,484 (5,373 ) 1,453,723 1,453,723 Utilities 312,200 12,548 (426 ) 324,322 324,322 Other 27,027 1,096 (90 ) 28,033 28,033 Total corporate 3,949,178 100,751 (13,644 ) 4,036,285 4,036,285 Foreign government 818,276 20,507 (23,359 ) 815,424 815,424 Total available for sale 13,400,996 329,002 (75,745 ) 13,654,253 13,654,253 Total investments in fixed maturity securities $ 13,479,543 $ 343,174 $ (75,745 ) $ 13,746,972 $ 13,732,800 (In thousands) Amortized Gross Unrealized Fair Carrying Gains Losses December 31, 2018 Held to maturity: State and municipal $ 67,891 $ 11,549 $ — $ 79,440 $ 67,891 Residential mortgage-backed 10,744 1,259 — 12,003 10,744 Total held to maturity 78,635 12,808 — 91,443 78,635 Available for sale: U.S. government and government agency 697,931 9,219 (4,910 ) 702,240 702,240 State and municipal: Special revenue 2,396,089 30,507 (19,790 ) 2,406,806 2,406,806 State general obligation 335,626 11,951 (1,103 ) 346,474 346,474 Pre-refunded 408,141 16,568 (30 ) 424,679 424,679 Corporate backed 272,440 4,319 (2,350 ) 274,409 274,409 Local general obligation 403,219 18,350 (1,339 ) 420,230 420,230 Total state and municipal 3,815,515 81,695 (24,612 ) 3,872,598 3,872,598 Mortgage-backed securities: Residential (1) 1,264,376 7,729 (20,225 ) 1,251,880 1,251,880 Commercial 345,070 1,304 (3,708 ) 342,666 342,666 Total mortgage-backed securities 1,609,446 9,033 (23,933 ) 1,594,546 1,594,546 Asset-backed 2,462,303 10,131 (33,687 ) 2,438,747 2,438,747 Corporate: Industrial 2,295,778 15,355 (53,312 ) 2,257,821 2,257,821 Financial 1,502,427 7,178 (45,683 ) 1,463,922 1,463,922 Utilities 330,326 2,997 (4,148 ) 329,175 329,175 Other 60,238 322 (167 ) 60,393 60,393 Total corporate 4,188,769 25,852 (103,310 ) 4,111,311 4,111,311 Foreign government 822,093 11,753 (25,111 ) 808,735 808,735 Total available for sale 13,596,057 147,683 (215,563 ) 13,528,177 13,528,177 Total investments in fixed maturity securities $ 13,674,692 $ 160,491 $ (215,563 ) $ 13,619,620 $ 13,606,812 ____________ (1) Gross unrealized losses for residential mortgage-backed securities include $(42,762) and $(55,090) as of June 30, 2019 and December 31, 2018 , respectively, related to securities with the non-credit portion of other-than-temporary impairments (“OTTI”) recognized in accumulated other comprehensive income. The amortized cost and fair value of fixed maturity securities at June 30, 2019 , by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations. (In thousands) Amortized Cost Fair Value Due in one year or less $ 1,017,744 $ 1,022,427 Due after one year through five years 4,680,578 4,764,795 Due after five years through ten years 3,226,328 3,347,580 Due after ten years 2,999,301 3,025,841 Mortgage-backed securities 1,555,592 1,586,329 Total $ 13,479,543 $ 13,746,972 At June 30, 2019 and December 31, 2018 , there were no investments that exceeded 10% |
Investments in Equity Securitie
Investments in Equity Securities | 6 Months Ended |
Jun. 30, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |
Investments in Equity Securities | Investments in Fixed Maturity Securities At June 30, 2019 and December 31, 2018 , investments in fixed maturity securities were as follows: (In thousands) Amortized Cost Gross Unrealized Fair Value Carrying Value Gains Losses June 30, 2019 Held to maturity: State and municipal $ 69,167 $ 13,089 $ — $ 82,256 $ 69,167 Residential mortgage-backed 9,380 1,083 — 10,463 9,380 Total held to maturity 78,547 14,172 — 92,719 78,547 Available for sale: U.S. government and government agency 760,247 18,241 (1,418 ) 777,070 777,070 State and municipal: Special revenue 2,322,750 63,204 (2,674 ) 2,383,280 2,383,280 State general obligation 320,338 22,108 (43 ) 342,403 342,403 Pre-refunded 298,825 19,876 (122 ) 318,579 318,579 Corporate backed 238,319 7,065 (639 ) 244,745 244,745 Local general obligation 427,233 32,026 (443 ) 458,816 458,816 Total state and municipal 3,607,465 144,279 (3,921 ) 3,747,823 3,747,823 Mortgage-backed securities: Residential (1) 1,242,880 28,521 (5,316 ) 1,266,085 1,266,085 Commercial 303,332 6,829 (380 ) 309,781 309,781 Total mortgage-backed securities 1,546,212 35,350 (5,696 ) 1,575,866 1,575,866 Asset-backed 2,719,618 9,874 (27,707 ) 2,701,785 2,701,785 Corporate: Industrial 2,178,339 59,623 (7,755 ) 2,230,207 2,230,207 Financial 1,431,612 27,484 (5,373 ) 1,453,723 1,453,723 Utilities 312,200 12,548 (426 ) 324,322 324,322 Other 27,027 1,096 (90 ) 28,033 28,033 Total corporate 3,949,178 100,751 (13,644 ) 4,036,285 4,036,285 Foreign government 818,276 20,507 (23,359 ) 815,424 815,424 Total available for sale 13,400,996 329,002 (75,745 ) 13,654,253 13,654,253 Total investments in fixed maturity securities $ 13,479,543 $ 343,174 $ (75,745 ) $ 13,746,972 $ 13,732,800 (In thousands) Amortized Gross Unrealized Fair Carrying Gains Losses December 31, 2018 Held to maturity: State and municipal $ 67,891 $ 11,549 $ — $ 79,440 $ 67,891 Residential mortgage-backed 10,744 1,259 — 12,003 10,744 Total held to maturity 78,635 12,808 — 91,443 78,635 Available for sale: U.S. government and government agency 697,931 9,219 (4,910 ) 702,240 702,240 State and municipal: Special revenue 2,396,089 30,507 (19,790 ) 2,406,806 2,406,806 State general obligation 335,626 11,951 (1,103 ) 346,474 346,474 Pre-refunded 408,141 16,568 (30 ) 424,679 424,679 Corporate backed 272,440 4,319 (2,350 ) 274,409 274,409 Local general obligation 403,219 18,350 (1,339 ) 420,230 420,230 Total state and municipal 3,815,515 81,695 (24,612 ) 3,872,598 3,872,598 Mortgage-backed securities: Residential (1) 1,264,376 7,729 (20,225 ) 1,251,880 1,251,880 Commercial 345,070 1,304 (3,708 ) 342,666 342,666 Total mortgage-backed securities 1,609,446 9,033 (23,933 ) 1,594,546 1,594,546 Asset-backed 2,462,303 10,131 (33,687 ) 2,438,747 2,438,747 Corporate: Industrial 2,295,778 15,355 (53,312 ) 2,257,821 2,257,821 Financial 1,502,427 7,178 (45,683 ) 1,463,922 1,463,922 Utilities 330,326 2,997 (4,148 ) 329,175 329,175 Other 60,238 322 (167 ) 60,393 60,393 Total corporate 4,188,769 25,852 (103,310 ) 4,111,311 4,111,311 Foreign government 822,093 11,753 (25,111 ) 808,735 808,735 Total available for sale 13,596,057 147,683 (215,563 ) 13,528,177 13,528,177 Total investments in fixed maturity securities $ 13,674,692 $ 160,491 $ (215,563 ) $ 13,619,620 $ 13,606,812 ____________ (1) Gross unrealized losses for residential mortgage-backed securities include $(42,762) and $(55,090) as of June 30, 2019 and December 31, 2018 , respectively, related to securities with the non-credit portion of other-than-temporary impairments (“OTTI”) recognized in accumulated other comprehensive income. The amortized cost and fair value of fixed maturity securities at June 30, 2019 , by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations. (In thousands) Amortized Cost Fair Value Due in one year or less $ 1,017,744 $ 1,022,427 Due after one year through five years 4,680,578 4,764,795 Due after five years through ten years 3,226,328 3,347,580 Due after ten years 2,999,301 3,025,841 Mortgage-backed securities 1,555,592 1,586,329 Total $ 13,479,543 $ 13,746,972 At June 30, 2019 and December 31, 2018 , there were no investments that exceeded 10% |
Equity securities | |
Debt Securities, Available-for-sale [Line Items] | |
Investments in Equity Securities | Investments in Equity Securities At June 30, 2019 and December 31, 2018 , investments in equity securities were as follows: (In thousands) Cost Gross Unrealized Fair Value Carrying Value Gains Losses June 30, 2019 Common stocks $ 153,440 $ 8,092 $ (21,306 ) $ 140,226 $ 140,226 Preferred stocks 101,423 180,316 (5,377 ) 276,362 276,362 Total $ 254,863 $ 188,408 $ (26,683 ) $ 416,588 $ 416,588 December 31, 2018 Common stocks $ 113,576 $ 4,335 $ (19,719 ) $ 98,192 $ 98,192 Preferred stocks 115,201 72,364 (6,751 ) 180,814 180,814 Total $ 228,777 $ 76,699 $ (26,470 ) $ 279,006 $ 279,006 |
Arbitrage Trading Account
Arbitrage Trading Account | 6 Months Ended |
Jun. 30, 2019 | |
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | |
Arbitrage Trading Account | Arbitrage Trading Account At June 30, 2019 and December 31, 2018 , the fair and carrying values of the arbitrage trading account were $533 million and $453 million , respectively. The primary focus of the trading account is merger arbitrage. Merger arbitrage is the business of investing in the securities of publicly held companies which are the targets in announced tender offers and mergers. Arbitrage investing differs from other types of investing in its focus on transactions and events believed likely to bring about a change in value over a relatively short time period (usually four months or less). The Company uses put options, call options and swap contracts in order to mitigate the impact of potential changes in market conditions on the merger arbitrage trading account. These options and contracts are reported at fair value. As of June 30, 2019 , the fair value of long option contracts outstanding was $313 thousand (notional amount of $9.9 million ) and the fair value of short option contracts outstanding was $291 thousand (notional amount of $15.6 million ). Other than with respect to the use of these trading account securities, the Company does not make use of derivatives. |
Net Investment Income
Net Investment Income | 6 Months Ended |
Jun. 30, 2019 | |
Net Investment Income [Abstract] | |
Net Investment Income | Net Investment Income Net investment income consists of the following: For the Three Months For the Six Months (In thousands) 2019 2018 2019 2018 Investment income earned on: Fixed maturity securities, including cash and cash equivalents and loans receivable $ 128,903 $ 129,665 $ 261,022 $ 252,911 Investment funds 46,840 12,716 58,251 53,070 Arbitrage trading account 7,199 8,333 17,784 13,524 Real estate 5,174 3,174 9,481 9,742 Equity securities 1,303 559 2,591 1,205 Gross investment income 189,419 154,447 349,129 330,452 Investment expense (1,086 ) (670 ) (2,542 ) (2,157 ) Net investment income $ 188,333 $ 153,777 $ 346,587 $ 328,295 |
Investment Funds
Investment Funds | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment Funds | Investment Funds The Company evaluates whether it is an investor in a variable interest entity ("VIE"). Such entities do not have sufficient equity at risk to finance their activities without additional subordinated financial support, or the equity investors, as a group, do not have the characteristics of a controlling financial interest (primary beneficiary). The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose, and the Company's relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE and on an ongoing basis. The Company is not the primary beneficiary in any of its investment funds, and accordingly, carries its interests in investment funds under the equity method of accounting. The Company’s maximum exposure to loss with respect to these investments is limited to the carrying amount reported on the Company’s consolidated balance sheet and its unfunded commitments, which were $241 million as of June 30, 2019 . Investment funds consisted of the following: Carrying Value as of Income (Loss) from Investment Funds June 30, December 31, For the Six Months (In thousands) 2019 2018 2019 2018 Real estate $ 654,610 $ 642,137 $ 13,078 $ 35,826 Energy 75,053 75,213 (7,100 ) (1,256 ) Other funds 671,908 615,468 52,273 18,500 Total $ 1,401,571 $ 1,332,818 $ 58,251 $ 53,070 |
Real Estate
Real Estate | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate [Abstract] | |
Real Estate | Real Estate Investment in real estate represents directly owned property held for investment, as follows: Carrying Value June 30, December 31, (In thousands) 2019 2018 Properties in operation $ 1,310,149 $ 1,279,584 Properties under development 757,395 677,508 Total $ 2,067,544 $ 1,957,092 In 2019, properties in operation included a long-term ground lease in Washington, D.C., a hotel in Memphis, Tennessee, two office complexes in New York City, office buildings in West Palm Beach and Palm Beach, Florida, and an office building in London. Properties in operation are net of accumulated depreciation and amortization of $55,515,000 and $46,250,000 as of June 30, 2019 and December 31, 2018 , respectively. Related depreciation expense was $8,931,000 and $10,784,000 for the six months ended June 30, 2019 and 2018 , respectively. Future minimum rental income expected on operating leases relating to properties in operation is $32,963,388 in 2019, $66,249,918 in 2020, $68,157,589 in 2021, $71,308,839 in 2022, $64,897,648 in 2023, $62,673,400 in 2024 and $666,203,503 thereafter. The Company borrowed $101,750,000 through a non-recourse loan secured by the West Palm Beach office building in 2018. The loan matures in November 2028 and carries a fixed interest rate of 4.21% . The carrying value does not reflect the outstanding financing, but rather is reflected within senior notes and other debt on the Company's consolidated balance sheet. |
Loans Receivable
Loans Receivable | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans Receivable | Loans Receivable Loans receivable are as follows: (In thousands) June 30, 2019 December 31, 2018 Amortized cost (net of valuation allowance): Real estate loans $ 61,830 $ 62,289 Commercial loans 32,867 32,524 Total $ 94,697 $ 94,813 Fair value: Real estate loans $ 62,536 $ 63,047 Commercial loans 34,369 34,026 Total $ 96,905 $ 97,073 Valuation allowance: Specific $ 341 $ 1,200 General 1,949 2,183 Total $ 2,290 $ 3,383 For the Three Months 2019 2018 Change in valuation allowance $ (1,093 ) $ — For the Six Months 2019 2018 Change in valuation allowance $ (1,093 ) $ — Loans receivable in non-accrual status were $0.4 million and $1.2 million as of June 30, 2019 and December 31, 2018 . The Company monitors the performance of its loans receivable and assesses the ability of the borrower to pay principal and interest based upon loan structure, underlying property values, cash flow and related financial and operating performance of the property and market conditions. Loans receivable with a potential for default are further assessed using discounted cash flow analysis and comparable cost and sales methodologies, if appropriate. The real estate loans are secured by commercial real estate primarily located in New York. These loans generally earn interest at floating LIBOR-based interest rates and have maturities (inclusive of extension options) through August 2025. The commercial loans are with small business owners who have secured the related financing with the assets of the business. Commercial loans primarily earn interest on a fixed basis and have varying maturities generally not exceeding 10 years. In evaluating the real estate loans, the Company considers their credit quality indicators, including loan to value ratios, which compare the outstanding loan amount to the estimated value of the property, the borrower’s financial condition and performance with respect to loan terms, the position in the capital structure, the overall leverage in the capital structure and other market conditions. Based on these considerations, none of the real estate loans were considered to be impaired at June 30, 2019 , and accordingly, the Company determined that a specific valuation allowance was not required. |
Realized And Unrealized Investm
Realized And Unrealized Investment Gains (Losses) on Investments | 6 Months Ended |
Jun. 30, 2019 | |
Realized and Unrealized Investment Gains (Losses) [Abstract] | |
Realized And Unrealized Investment Gains (Losses) on Investments | Net Realized and Unrealized Gains (Losses) on Investments Net realized and unrealized gains (losses) on investments are as follows: For the Three Months For the Six Months (In thousands) 2019 2018 2019 2018 Net realized and unrealized gains (losses) on investments in earnings Fixed maturity securities: Gains $ 3,157 $ 7,921 $ 8,403 $ 21,260 Losses (3,377 ) (4,125 ) (6,895 ) (7,865 ) Equity securities (1): Net realized (losses) gains on investment sales (6 ) 119,422 23,339 241,743 Change in unrealized gains (losses) 69,418 (54,652 ) 111,496 (148,857 ) Investment funds 41 (353 ) 58 (234 ) Real estate 3,021 (402 ) 5,767 7,596 Loans receivable — 1 (970 ) 2,059 Other 1,320 1,819 1,028 2,393 Net realized and unrealized gains on investments in earnings before OTTI 73,574 69,631 142,226 118,095 Other-than-temporary impairments — — — — Net realized and unrealized gains on investments in earnings 73,574 69,631 142,226 118,095 Income tax expense (15,451 ) (14,623 ) (29,867 ) (24,800 ) After-tax net realized and unrealized gains on investments in earnings $ 58,123 $ 55,008 $ 112,359 $ 93,295 Change in unrealized investment gains (losses) of available for sale securities: Fixed maturity securities $ 146,629 $ (36,848 ) $ 321,123 $ (196,575 ) Previously impaired fixed maturity securities 81 (2 ) 12 11 Investment funds 361 (3,638 ) (4,804 ) (4,772 ) Total change in unrealized investment gains (losses) 147,071 (40,488 ) 316,331 (201,336 ) Income tax (expense) benefit (28,422 ) 8,118 (71,907 ) 43,194 Noncontrolling interests 30 37 (18 ) 26 After-tax change in unrealized investment gains (losses) of available for sale securities $ 118,679 $ (32,333 ) $ 244,406 $ (158,116 ) ______________________ (1) The net realized gains or losses on investment sales represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized gains consists of two components: (i) the reversal of the gain or loss recognized in previous periods on equity securities sold and (ii) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held. |
Fixed Maturity Securities In An
Fixed Maturity Securities In An Unrealized Loss Position | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturity Securities In An Unrealized Loss Position | Fixed Maturity Securities in an Unrealized Loss Position The following tables summarize all fixed maturity securities in an unrealized loss position at June 30, 2019 and December 31, 2018 by the length of time those securities have been continuously in an unrealized loss position: Less Than 12 Months 12 Months or Greater Total (In thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2019 U.S. government and government agency $ 6,175 $ 37 $ 92,729 $ 1,381 $ 98,904 $ 1,418 State and municipal 64,499 838 270,454 3,083 334,953 3,921 Mortgage-backed securities 23,049 112 334,887 5,584 357,936 5,696 Asset-backed securities 1,010,706 17,410 572,110 10,297 1,582,816 27,707 Corporate 139,627 1,095 328,409 12,549 468,036 13,644 Foreign government 140,589 18,942 73,967 4,417 214,556 23,359 Fixed maturity securities $ 1,384,645 $ 38,434 $ 1,672,556 $ 37,311 $ 3,057,201 $ 75,745 December 31, 2018 U.S. government and government agency $ 195,359 $ 933 $ 130,815 $ 3,977 $ 326,174 $ 4,910 State and municipal 701,700 6,874 744,905 17,738 1,446,605 24,612 Mortgage-backed securities 334,063 2,911 712,595 21,022 1,046,658 23,933 Asset-backed securities 1,687,665 28,965 342,855 4,722 2,030,520 33,687 Corporate 1,730,513 54,181 954,763 49,129 2,685,276 103,310 Foreign government 246,273 24,197 80,004 914 326,277 25,111 Fixed maturity securities $ 4,895,573 $ 118,061 $ 2,965,937 $ 97,502 $ 7,861,510 $ 215,563 A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at June 30, 2019 is presented in the table below: ($ in thousands) Number of Securities Aggregate Fair Value Gross Unrealized Loss Foreign government 12 $ 114,714 $ 22,719 Corporate 11 65,905 3,278 Asset-backed securities 7 10,412 1,344 Mortgage-backed securities 4 7,170 63 Total 34 $ 198,201 $ 27,404 For OTTI of fixed maturity securities that management does not intend to sell or to be required to sell, the portion of the decline in value that is considered to be due to credit factors is recognized in earnings, and the portion of the decline in value that is considered to be due to non-credit factors is recognized in other comprehensive income. The Company has evaluated its fixed maturity securities in an unrealized loss position and believes the unrealized losses are due primarily to temporary market and sector-related factors rather than to issuer-specific factors. None of these securities are delinquent or in default under financial covenants. Based on its assessment of these issuers, the Company expects them to continue to meet their contractual payment obligations as they become due and does not consider any of these securities to be OTTI. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company’s fixed maturity available for sale securities, equity securities and its arbitrage trading account securities are carried at fair value. Fair value is defined as “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.” The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 - Quoted prices for similar assets or valuations based on inputs that are observable. Level 3 - Estimates of fair value based on internal pricing methodologies using unobservable inputs. Unobservable inputs are only used to measure fair value to the extent that observable inputs are not available. Substantially all of the Company’s fixed maturity securities were priced by independent pricing services. The prices provided by the independent pricing services are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The pricing services may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs are available for each security evaluation on any given day. The pricing services used by the Company have indicated that they will only produce an estimate of fair value if objectively verifiable information is available. The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness and periodically performs independent price tests of a sample of securities to ensure proper valuation. If prices from independent pricing services are not available for fixed maturity securities, the Company estimates the fair value. For Level 2 securities, the Company utilizes pricing models and processes which may include benchmark yields, sector groupings, matrix pricing, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers and reference data. Where broker quotes are used, the Company generally requests two or more quotes and sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes received from brokers. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial projections, credit quality and business developments of the issuer and other relevant information. For Level 3 securities, the Company generally uses a discounted cash flow model to estimate the fair value of fixed maturity securities. The cash flow models are based upon assumptions as to prevailing credit spreads, interest rate and interest rate volatility, time to maturity and subordination levels. Projected cash flows are discounted at rates that are adjusted to reflect illiquidity, where appropriate. The following tables present the assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018 by level: (In thousands) Total Level 1 Level 2 Level 3 June 30, 2019 Assets: Fixed maturity securities available for sale: U.S. government and government agency $ 777,070 $ — $ 777,070 $ — State and municipal 3,747,823 — 3,747,823 — Mortgage-backed securities 1,575,866 — 1,575,866 — Asset-backed securities 2,701,785 — 2,701,760 25 Corporate 4,036,285 — 4,036,285 — Foreign government 815,424 — 815,424 — Total fixed maturity securities available for sale 13,654,253 — 13,654,228 25 Equity securities: Common stocks 140,226 131,242 — 8,984 Preferred stocks 276,362 — 272,426 3,936 Total equity securities 416,588 131,242 272,426 12,920 Arbitrage trading account 533,442 424,030 83,206 26,206 Total $ 14,604,283 $ 555,272 $ 14,009,860 $ 39,151 Liabilities: Trading account securities sold but not yet purchased $ 159,349 $ 144,420 $ 213 $ 14,716 December 31, 2018 Assets: Fixed maturity securities available for sale: U.S. government and government agency $ 702,240 $ — $ 702,240 $ — State and municipal 3,872,598 — 3,872,598 — Mortgage-backed securities 1,594,546 — 1,594,546 — Asset-backed securities 2,438,747 — 2,438,648 99 Corporate 4,111,311 — 4,111,311 — Foreign government 808,735 — 808,735 — Total fixed maturity securities available for sale 13,528,177 — 13,528,078 99 Equity securities: Common stocks 98,192 89,596 — 8,596 Preferred stocks 180,814 — 176,869 3,945 Total equity securities 279,006 89,596 176,869 12,541 Arbitrage trading account 452,548 353,335 81,905 17,308 Total $ 14,259,731 $ 442,931 $ 13,786,852 $ 29,948 Liabilities: Trading account securities sold but not yet purchased $ 38,120 $ 37,327 $ — $ 793 The following tables summarize changes in Level 3 assets and liabilities for the six months ended June 30, 2019 and for the year ended December 31, 2018 : Gains (Losses) Included in: (In thousands) Beginning Balance Earnings (Losses) Other Comprehensive Income (Loss) Impairments Purchases (Sales) Paydowns / Maturities Transfers In / (Out) Ending Balance Six Months Ended Assets: Fixed maturities securities available for sale: Asset-backed securities $ 99 $ 2 $ 46 $ — $ — $ (122 ) $ — $ — $ 25 Total 99 2 46 — — (122 ) — — 25 Equity securities: Common stocks 8,596 388 — — — — — — 8,984 Preferred stocks 3,945 (9 ) — — — — — — 3,936 Total 12,541 379 — — — — — — 12,920 Arbitrage trading account 17,308 409 — — 14,672 (21,072 ) — 14,889 26,206 Total $ 29,948 $ 790 $ 46 $ — $ 14,672 $ (21,194 ) $ — $ 14,889 $ 39,151 Liabilities: Trading account securities sold but not yet purchased $ 793 $ 9,320 $ — $ — $ 7,609 $ (3,006 ) $ — $ — $ 14,716 Year Ended Assets: Fixed maturities securities available for sale: Asset-backed securities $ 172 $ (2 ) $ 46 $ — $ — $ (117 ) $ — $ — $ 99 Total 172 (2 ) 46 — — (117 ) — — 99 Equity securities: Common stocks 9,370 (548 ) — — — (227 ) — 1 8,596 Preferred stocks 10,843 100 — — (6,998 ) — — 3,945 Total 20,213 (448 ) — — — (7,225 ) — 1 12,541 Arbitrage trading account — (6 ) — — 11,523 (11 ) — 5,802 17,308 Total $ 20,385 $ (456 ) $ 46 $ — $ 11,523 $ (7,353 ) $ — $ 5,803 $ 29,948 Liabilities: Trading account securities sold but not yet purchased $ — $ (67 ) $ — $ — $ 860 $ — $ — $ — $ 793 Transfers into Level 3 represent cases where a publicly traded price was no longer available for a particular investment. The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments: June 30, 2019 December 31, 2018 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Assets: Fixed maturity securities $ 13,732,800 $ 13,746,972 $ 13,606,812 $ 13,619,620 Equity securities 416,588 416,588 279,006 279,006 Arbitrage trading account 533,442 533,442 452,548 452,548 Loans receivable 94,697 96,905 94,813 97,073 Cash and cash equivalents 1,258,174 1,258,174 817,602 817,602 Trading account receivables from brokers and clearing organizations 402,361 402,361 347,228 347,228 Liabilities: Due to broker 39,230 39,230 20,144 20,144 Trading account securities sold but not yet purchased 159,349 159,349 38,120 38,120 Subordinated debentures 907,866 969,172 907,491 840,002 Senior notes and other debt 1,873,799 2,019,430 1,882,028 1,968,996 The estimated fair values of the Company’s fixed maturity securities, equity securities and arbitrage trading account securities are based on various valuation techniques that rely on fair value measurements as described in Note 15. The fair value of loans receivable are estimated by using current institutional purchaser yield requirements for loans with similar credit characteristics, which is considered a Level 2 input. The fair value of the senior notes and other debt and the subordinated debentures is based on spreads for similar securities, which is considered a Level 2 input. |
Reserves for Loss and Loss Expe
Reserves for Loss and Loss Expenses | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Reserves for Loss and Loss Expenses | Reserves for Loss and Loss Expenses The Company's reserves for losses and loss expenses are comprised of case reserves and incurred but not reported liabilities ("IBNR"). When a claim is reported, a case reserve is established for the estimated ultimate payment based upon known information about the claim. As more information about the claim becomes available over time, case reserves are adjusted up or down as appropriate. Reserves are also established on an aggregate basis to provide for IBNR liabilities and expected loss reserve development on reported claims. Loss reserves included in the Company’s financial statements represent management’s best estimates based upon an actuarially derived point estimate and other considerations. The Company uses a variety of actuarial techniques and methods to derive an actuarial point estimate for each operating unit. These methods include paid loss development, incurred loss development, paid and incurred Bornhuetter-Ferguson methods and frequency and severity methods. In circumstances where one actuarial method is considered more credible than the others, that method is used to set the point estimate. The actuarial point estimate may also be based on a judgmental weighting of estimates produced from each of the methods considered. Industry loss experience is used to supplement the Company’s own data in selecting “tail factors” in areas where the Company’s own data is limited. The actuarial data is analyzed by line of business, coverage and accident or policy year, as appropriate, for each operating unit. The establishment of the actuarially derived loss reserve point estimate also includes consideration of qualitative factors that may affect the ultimate losses. These qualitative considerations include, among others, the impact of re-underwriting initiatives, changes in the mix of business, changes in distribution sources and changes in policy terms and conditions. The key assumptions used to arrive at the best estimate of loss reserves are the expected loss ratios, rate of loss cost inflation, and reported and paid loss emergence patterns. Expected loss ratios represent management’s expectation of losses at the time the business is priced and written, before any actual claims experience has emerged. This expectation is a significant determinant of the estimate of loss reserves for recently written business where there is little paid or incurred loss data to consider. Expected loss ratios are generally derived from historical loss ratios adjusted for the impact of rate changes, loss cost trends and known changes in the type of risks underwritten. Expected loss ratios are estimated for each key line of business within each operating unit. Expected loss cost inflation is particularly important for the long-tail lines, such as excess casualty, and claims with a high medical component, such as workers’ compensation. Reported and paid loss emergence patterns are used to project current reported or paid loss amounts to their ultimate settlement value. Loss development factors are based on the historical emergence patterns of paid and incurred losses, and are derived from the Company’s own experience and industry data. The paid loss emergence pattern is also significant to excess and assumed workers’ compensation reserves because those reserves are discounted to their estimated present value based upon such estimated payout patterns. Loss frequency and severity are measures of loss activity that are considered in determining the key assumptions described in our discussion of loss and loss expense reserves, including expected loss ratios, rate of loss cost inflation and reported and paid loss emergence patterns. Loss frequency is a measure of the number of claims per unit of insured exposure, and loss severity is a measure of the average size of claims. Factors affecting loss frequency include the effectiveness of loss controls and safety programs and changes in economic activity or weather patterns. Factors affecting loss severity include changes in policy limits, retentions, rate of inflation and judicial interpretations. Another factor affecting estimates of loss frequency and severity is the loss reporting lag, which is the period of time between the occurrence of a loss and the date the loss is reported to the Company. The length of the loss reporting lag affects our ability to accurately predict loss frequency (loss frequencies are more predictable for lines with short reporting lags) as well as the amount of reserves needed for incurred but not reported losses (less IBNR is required for lines with short reporting lags). As a result, loss reserves for lines with short reporting lags are likely to have less variation from initial loss estimates. For lines with short reporting lags, which include commercial automobile, primary workers’ compensation, other liability (claims-made) and property business, the key assumption is the loss emergence pattern used to project ultimate loss estimates from known losses paid or reported to date. For lines of business with long reporting lags, which include other liability (occurrence), products liability, excess workers’ compensation and liability reinsurance, the key assumption is the expected loss ratio since there is often little paid or incurred loss data to consider. Historically, the Company has experienced less variation from its initial loss estimates for lines of businesses with short reporting lags than for lines of business with long reporting lags. The key assumptions used in calculating the most recent estimate of the loss reserves are reviewed each quarter and adjusted, to the extent necessary, to reflect the latest reported loss data, current trends and other factors observed. The table below provides a reconciliation of the beginning and ending reserve balances: June 30, (In thousands) 2019 2018 Net reserves at beginning of period $ 10,248,883 $ 10,056,914 Net provision for losses and loss expenses: Claims occurring during the current year (1) 1,980,138 1,916,140 Increase (decrease) in estimates for claims occurring in prior years (2) (3) 16,764 (246 ) Loss reserve discount accretion 20,577 20,962 Total 2,017,479 1,936,856 Net payments for claims: Current year 548,589 316,567 Prior years 1,200,906 1,527,522 Total 1,749,495 1,844,089 Foreign currency translation (2,228 ) (72,351 ) Net reserves at end of period 10,514,639 10,077,330 Ceded reserves at end of period 1,805,639 1,659,245 Gross reserves at end of period $ 12,320,278 $ 11,736,575 _______________________________________ (1) Claims occurring during the current year are net of loss reserve discounts of $ 11 million and $13 million for the six months ended June 30, 2019 and 2018 . (2) The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years increased by $ 9 million and decreased by $ 6 million for the six months ended June 30, 2019 and 2018 , respectively. (3) For certain retrospectively rated insurance policies and reinsurance agreements, reserve development is offset by additional or return premiums. Favorable development, net of additional and return premiums, was $14 million and $19 million for the six months ended June 30, 2019 and 2018 , respectively. During the six months ended June 30, 2019 , favorable prior year development (net of additional and return premiums) of $13.6 million included $17.2 million of favorable development for the Insurance segment, offset by $3.6 million of adverse development for the Reinsurance & Monoline Excess segment. The overall favorable development for the Insurance segment was primarily attributable to favorable development on workers’ compensation business, partially offset by adverse development on other liability business, commercial auto liability business, and medical malpractice business. The favorable workers’ compensation development was spread across many accident years, including prior to 2009, but was most significant in accident years 2015 through 2018. The favorable workers’ compensation development reflects a continuation of the benign loss cost trends experienced during recent years, particularly the favorable claim frequency trends (i.e., number of reported claims per unit of exposure). The adverse other liability development was mainly related to accident years 2014 through 2016. It was driven by a higher than expected number of large losses being reported in the period, including both general liability and professional liability losses. The adverse commercial auto liability development was primarily related to accident year 2018, and was driven by a higher than expected number of large losses. The adverse medical malpractice development was primarily related to accident years 2013 through 2016, and stemmed from a discontinued book of business at one of our profit centers. The adverse development for the Reinsurance & Monoline Excess segment was mainly driven by U.S. casualty facultative business from accident years 2009 and prior related to construction projects. During the six months ended June 30, 2018, favorable prior year development (net of additional and return premiums) of $19.3 million included $18.6 million of favorable development for the Insurance segment, and $0.7 million |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | Fair Value Measurements The Company’s fixed maturity available for sale securities, equity securities and its arbitrage trading account securities are carried at fair value. Fair value is defined as “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.” The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 - Quoted prices for similar assets or valuations based on inputs that are observable. Level 3 - Estimates of fair value based on internal pricing methodologies using unobservable inputs. Unobservable inputs are only used to measure fair value to the extent that observable inputs are not available. Substantially all of the Company’s fixed maturity securities were priced by independent pricing services. The prices provided by the independent pricing services are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The pricing services may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs are available for each security evaluation on any given day. The pricing services used by the Company have indicated that they will only produce an estimate of fair value if objectively verifiable information is available. The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness and periodically performs independent price tests of a sample of securities to ensure proper valuation. If prices from independent pricing services are not available for fixed maturity securities, the Company estimates the fair value. For Level 2 securities, the Company utilizes pricing models and processes which may include benchmark yields, sector groupings, matrix pricing, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers and reference data. Where broker quotes are used, the Company generally requests two or more quotes and sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes received from brokers. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial projections, credit quality and business developments of the issuer and other relevant information. For Level 3 securities, the Company generally uses a discounted cash flow model to estimate the fair value of fixed maturity securities. The cash flow models are based upon assumptions as to prevailing credit spreads, interest rate and interest rate volatility, time to maturity and subordination levels. Projected cash flows are discounted at rates that are adjusted to reflect illiquidity, where appropriate. The following tables present the assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018 by level: (In thousands) Total Level 1 Level 2 Level 3 June 30, 2019 Assets: Fixed maturity securities available for sale: U.S. government and government agency $ 777,070 $ — $ 777,070 $ — State and municipal 3,747,823 — 3,747,823 — Mortgage-backed securities 1,575,866 — 1,575,866 — Asset-backed securities 2,701,785 — 2,701,760 25 Corporate 4,036,285 — 4,036,285 — Foreign government 815,424 — 815,424 — Total fixed maturity securities available for sale 13,654,253 — 13,654,228 25 Equity securities: Common stocks 140,226 131,242 — 8,984 Preferred stocks 276,362 — 272,426 3,936 Total equity securities 416,588 131,242 272,426 12,920 Arbitrage trading account 533,442 424,030 83,206 26,206 Total $ 14,604,283 $ 555,272 $ 14,009,860 $ 39,151 Liabilities: Trading account securities sold but not yet purchased $ 159,349 $ 144,420 $ 213 $ 14,716 December 31, 2018 Assets: Fixed maturity securities available for sale: U.S. government and government agency $ 702,240 $ — $ 702,240 $ — State and municipal 3,872,598 — 3,872,598 — Mortgage-backed securities 1,594,546 — 1,594,546 — Asset-backed securities 2,438,747 — 2,438,648 99 Corporate 4,111,311 — 4,111,311 — Foreign government 808,735 — 808,735 — Total fixed maturity securities available for sale 13,528,177 — 13,528,078 99 Equity securities: Common stocks 98,192 89,596 — 8,596 Preferred stocks 180,814 — 176,869 3,945 Total equity securities 279,006 89,596 176,869 12,541 Arbitrage trading account 452,548 353,335 81,905 17,308 Total $ 14,259,731 $ 442,931 $ 13,786,852 $ 29,948 Liabilities: Trading account securities sold but not yet purchased $ 38,120 $ 37,327 $ — $ 793 The following tables summarize changes in Level 3 assets and liabilities for the six months ended June 30, 2019 and for the year ended December 31, 2018 : Gains (Losses) Included in: (In thousands) Beginning Balance Earnings (Losses) Other Comprehensive Income (Loss) Impairments Purchases (Sales) Paydowns / Maturities Transfers In / (Out) Ending Balance Six Months Ended Assets: Fixed maturities securities available for sale: Asset-backed securities $ 99 $ 2 $ 46 $ — $ — $ (122 ) $ — $ — $ 25 Total 99 2 46 — — (122 ) — — 25 Equity securities: Common stocks 8,596 388 — — — — — — 8,984 Preferred stocks 3,945 (9 ) — — — — — — 3,936 Total 12,541 379 — — — — — — 12,920 Arbitrage trading account 17,308 409 — — 14,672 (21,072 ) — 14,889 26,206 Total $ 29,948 $ 790 $ 46 $ — $ 14,672 $ (21,194 ) $ — $ 14,889 $ 39,151 Liabilities: Trading account securities sold but not yet purchased $ 793 $ 9,320 $ — $ — $ 7,609 $ (3,006 ) $ — $ — $ 14,716 Year Ended Assets: Fixed maturities securities available for sale: Asset-backed securities $ 172 $ (2 ) $ 46 $ — $ — $ (117 ) $ — $ — $ 99 Total 172 (2 ) 46 — — (117 ) — — 99 Equity securities: Common stocks 9,370 (548 ) — — — (227 ) — 1 8,596 Preferred stocks 10,843 100 — — (6,998 ) — — 3,945 Total 20,213 (448 ) — — — (7,225 ) — 1 12,541 Arbitrage trading account — (6 ) — — 11,523 (11 ) — 5,802 17,308 Total $ 20,385 $ (456 ) $ 46 $ — $ 11,523 $ (7,353 ) $ — $ 5,803 $ 29,948 Liabilities: Trading account securities sold but not yet purchased $ — $ (67 ) $ — $ — $ 860 $ — $ — $ — $ 793 Transfers into Level 3 represent cases where a publicly traded price was no longer available for a particular investment. The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments: June 30, 2019 December 31, 2018 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Assets: Fixed maturity securities $ 13,732,800 $ 13,746,972 $ 13,606,812 $ 13,619,620 Equity securities 416,588 416,588 279,006 279,006 Arbitrage trading account 533,442 533,442 452,548 452,548 Loans receivable 94,697 96,905 94,813 97,073 Cash and cash equivalents 1,258,174 1,258,174 817,602 817,602 Trading account receivables from brokers and clearing organizations 402,361 402,361 347,228 347,228 Liabilities: Due to broker 39,230 39,230 20,144 20,144 Trading account securities sold but not yet purchased 159,349 159,349 38,120 38,120 Subordinated debentures 907,866 969,172 907,491 840,002 Senior notes and other debt 1,873,799 2,019,430 1,882,028 1,968,996 The estimated fair values of the Company’s fixed maturity securities, equity securities and arbitrage trading account securities are based on various valuation techniques that rely on fair value measurements as described in Note 15. The fair value of loans receivable are estimated by using current institutional purchaser yield requirements for loans with similar credit characteristics, which is considered a Level 2 input. The fair value of the senior notes and other debt and the subordinated debentures is based on spreads for similar securities, which is considered a Level 2 input. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Reinsurance | Reinsurance The following is a summary of reinsurance financial information: For the Three Months For the Six Months (In thousands) 2019 2018 2019 2018 Written premiums: Direct $ 1,883,032 $ 1,785,266 $ 3,712,847 $ 3,572,501 Assumed 206,828 162,808 423,243 354,995 Ceded (346,396 ) (323,970 ) (683,025 ) (638,054 ) Total net premiums written $ 1,743,464 $ 1,624,104 $ 3,453,065 $ 3,289,442 Earned premiums: Direct $ 1,773,437 $ 1,705,277 $ 3,497,047 $ 3,379,827 Assumed 198,661 180,509 386,852 369,375 Ceded (325,257 ) (304,733 ) (644,202 ) (600,741 ) Total net premiums earned $ 1,646,841 $ 1,581,053 $ 3,239,697 $ 3,148,461 Ceded losses and loss expenses incurred $ 239,267 $ 161,073 $ 412,314 $ 400,068 Ceded commissions earned $ 73,092 $ 65,922 $ 144,109 $ 132,278 The Company reinsures a portion of its insurance exposures in order to reduce its net liability on individual risks and catastrophe losses. The Company also cedes premiums to state assigned risk plans and captive insurance companies. Estimated amounts due from reinsurers are reported net of reserves for uncollectible reinsurance of $1 million as of both June 30, 2019 and December 31, 2018 . |
Restricted Stock Units
Restricted Stock Units | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Restricted Stock Units | Restricted Stock Units Pursuant to its stock incentive plan, the Company may issue restricted stock units ("RSUs") to employees of the Company and its subsidiaries. The RSUs generally vest three to five years from the award date and are subject to other vesting and forfeiture provisions contained in the award agreement. RSUs are expensed pro-ratably over the vesting period. RSU expenses were $25 million and $18 million for the six months ended June 30, 2019 and 2018 , respectively. A summary of RSUs issued in the six months ended June 30, 2019 and 2018 follows: ($ in thousands) Units Fair Value 2019 5,141 $ 308 2018 19,538 $ 963 |
Litigation and Contingent Liabi
Litigation and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingent Liabilities | Litigation and Contingent Liabilities In the ordinary course of business, the Company is subject to disputes, litigation and arbitration arising from its insurance and reinsurance businesses. These matters are generally related to insurance and reinsurance claims and are considered in the establishment of loss and loss expense reserves. In addition, the Company may also become involved in legal actions which seek extra-contractual damages, punitive damages or penalties, including claims alleging bad faith in handling of insurance claims. The Company expects its ultimate liability with respect to such matters will not be material to its financial condition. However, adverse outcomes on such matters are possible, from time to time, and could be material to the Company’s results of operations in any particular financial reporting period. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases As described in note 3, the Company prospectively adopted ASU 2016-02, Leases, for the quarter ended March 31, 2019, which requires lessees to recognize a right-of-use asset and a lease liability for leases with terms of more than 12 months on the balance sheet. All leases disclosed within this footnote are classified as operating leases. Recognized right-of-use asset and lease liability are reported within other assets and other liabilities, respectively, in the consolidated balance sheet. Lease expense is reported in other operating costs and expenses in the consolidated statement of income and accounted for on a straight-line basis over the lease term. To determine the discount rate used to calculate present value of future minimum lease payments, the Company uses its incremental borrowing rate during the lease commencement period in line with the respective lease duration. In certain cases, the Company has the option to renew the lease. Lease renewal future payments are included in the present value of the future minimum lease payments when the Company determines it is reasonably certain to renew. The main leases entered into by the Company are for office space used by the Company’s operating units across the world. Additionally, the Company, to a lesser extent, has equipment leases mainly for office equipment. Further information relating to operating lease expense and other operating lease information are as follows: For the Three Months Ended For the Six Months Ended (In thousands) Leases: Lease cost $ 10,680 $ 22,235 Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows $ 11,132 $ 22,789 Right-of-use assets obtained in exchange for new lease liabilities $ 2,918 $ 7,884 ($ in thousands) June 30, 2019 Right-of-use assets $ 179,984 Lease liabilities $ 209,107 Weighted-average remaining lease term 6.6 years Weighted-average discount rate 5.97 % Contractual maturities of the Company’s future minimum lease payments are as follows: (In thousands) June 30, 2019 Contractual Maturities: 2019 $ 24,117 2020 44,461 2021 40,681 2022 35,121 2023 31,556 Thereafter 77,578 Total undiscounted future minimum lease payments 253,514 Less: Discount impact (44,407 ) Total lease liability $ 209,107 |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company’s reportable segments include the following two business segments, plus a corporate segment: • Insurance - predominantly commercial insurance business, including excess and surplus lines, admitted lines and specialty personal lines throughout the United States, as well as insurance business in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia. • Reinsurance & Monoline Excess - reinsurance business on a facultative and treaty basis, primarily in the United States, the United Kingdom, Continental Europe, Australia, the Asia-Pacific Region and South Africa, as well as monoline excess business in the United States. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Income tax expense and benefits are calculated based upon the Company's overall effective tax rate. Summary financial information about the Company's reporting segments is presented in the following tables. Income (loss) before income taxes by segment includes allocated investment income. Identifiable assets by segment are those assets used in or allocated to the operation of each segment. Revenues (In thousands) Earned Premiums (1) Investment Income Other Total (2) Pre-Tax Income (Loss) Net Income (Loss) to Common Stockholders Three months ended June 30, 2019 Insurance $ 1,475,184 $ 132,403 $ 13,687 $ 1,621,274 $ 225,871 $ 179,241 Reinsurance & Monoline Excess 171,657 44,449 — 216,106 52,635 41,864 Corporate, other and eliminations (3) — 11,481 100,949 112,430 (78,344 ) (62,519 ) Net realized and unrealized gains on investments — — 73,574 73,574 73,574 58,123 Total $ 1,646,841 $ 188,333 $ 188,210 $ 2,023,384 $ 273,736 $ 216,709 Three months ended June 30, 2018 Insurance $ 1,415,579 $ 94,542 $ 18,707 $ 1,528,828 $ 163,181 $ 128,693 Reinsurance & Monoline Excess 165,474 41,914 — 207,388 56,174 44,291 Corporate, other and eliminations (3) — 17,321 87,748 105,069 (59,744 ) (47,917 ) Net realized and unrealized gains on investments — — 69,631 69,631 69,631 55,008 Total $ 1,581,053 $ 153,777 $ 176,086 $ 1,910,916 $ 229,242 $ 180,075 Six months ended June 30, 2019 Insurance $ 2,902,218 $ 232,444 $ 26,931 $ 3,161,593 $ 410,387 $ 325,234 Reinsurance & Monoline Excess 337,479 84,023 — 421,502 97,490 77,389 Corporate, other and eliminations (3) — 30,120 204,965 235,085 (146,928 ) (117,551 ) Net realized and unrealized gains on investments — — 142,226 142,226 142,226 112,359 Total $ 3,239,697 $ 346,587 $ 374,122 $ 3,960,406 $ 503,175 $ 397,431 Six Months Ended June 30, 2018 Insurance $ 2,806,868 $ 208,040 $ 37,675 $ 3,052,583 $ 362,109 $ 286,426 Reinsurance & Monoline Excess 341,593 88,928 — 430,521 100,866 79,838 Corporate, other and eliminations (3) — 31,327 169,637 200,964 (140,838 ) (113,087 ) Net realized and unrealized gains on investments — — 118,095 118,095 118,095 93,295 Total $ 3,148,461 $ 328,295 $ 325,407 $ 3,802,163 $ 440,232 $ 346,472 _________________ (1) Certain amounts included in earned premiums of each segment are related to inter-segment transactions. (2) Revenues for Insurance from foreign countries for the three months ended June 30, 2019 and 2018 were $179 million and $176 million , and for the six months ended June 30, 2019 and 2018 were $349 million and $359 million , respectively. Revenues for Reinsurance & Monoline Excess from foreign countries for the three months ended June 30, 2019 and 2018 were $62 million and $55 million , and for the six months ended June 30, 2019 and 2018 were $121 million and $112 million , respectively. (3) Corporate, other and eliminations represent corporate revenues and expenses that are not allocated to business segments. Identifiable Assets (In thousands) June 30, December 31, Insurance $ 19,444,475 $ 18,214,293 Reinsurance & Monoline Excess 4,573,446 4,371,151 Corporate, other and eliminations 2,469,982 2,310,533 Consolidated $ 26,487,903 $ 24,895,977 Net premiums earned by major line of business are as follows: For the Three Months For the Six Months (In thousands) 2019 2018 2019 2018 Insurance: Other liability $ 505,621 $ 474,721 $ 996,282 $ 938,889 Workers’ compensation 330,510 336,996 657,186 661,974 Short-tail lines (1) 305,852 288,320 594,943 583,347 Commercial automobile 188,278 175,812 369,203 351,010 Professional liability 144,923 139,730 284,604 271,648 Total Insurance 1,475,184 1,415,579 2,902,218 2,806,868 Reinsurance & Monoline Excess: Casualty reinsurance 95,109 86,841 185,939 177,411 Monoline excess (2) 39,400 40,429 78,381 81,477 Property reinsurance 37,148 38,204 73,159 82,705 Total Reinsurance & Monoline Excess 171,657 165,474 337,479 341,593 Total $ 1,646,841 $ 1,581,053 $ 3,239,697 $ 3,148,461 ______________ (1) Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery and other lines. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Per Share Data | Per Share Data The Company presents both basic and diluted net income per share (“EPS”) amounts. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period (including 7,389,781 and 7,270,954 common shares held in a grantor trust as of June 30, 2019 and 2018 , respectively). The common shares held in the grantor trust are for delivery upon settlement of vested but mandatorily deferred restricted stock units ("RSUs"). Shares held by the grantor trust do not affect diluted shares outstanding since the shares deliverable under vested RSUs were already included in diluted shares outstanding. Diluted EPS is based upon the weighted average number of basic and common equivalent shares outstanding during the period and is calculated using the treasury stock method for stock incentive plans. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently adopted accounting pronouncements: In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases, which amends the accounting and disclosure guidance for leases. This guidance retains the two classifications of a lease, as either an operating or finance lease, both of which require lessees to recognize a right-of-use asset and a lease liability for leases with terms of more than 12 months. The right-of-use asset and the lease liability are determined based upon the present value of cash flows. Finance leases reflect the financial arrangement by recognizing interest expense on the lease liability separately from the amortization expense of the right-of-use asset. Operating leases recognize lease expense (with no separate recognition of interest expense) on a straight-line basis over the term of the lease. The accounting by lessors is not significantly changed by the updated guidance. The updated guidance was effective for reporting periods beginning after December 15, 2018. As permitted by the rules, the Company adopted the new guidance prospectively for the quarter ended March 31, 2019. The Company elected to use the practical expedient permitted by the transition guidance which allowed companies to not reassess existing lease classifications for already effective leases. The adoption of this guidance resulted in the recognition of a right-of-use asset of $ 185 million and a lease liability of $ 215 million (prior to adoption the Company had a $ 30 million deferred rent liability recognized) reported within other assets and other liabilities, respectively, in the consolidated balance sheet. The adoption of this guidance did not have an impact on the Company's results of operations or liquidity. All other accounting and reporting standards that have become effective in 2019 were either not applicable to the Company or their adoption did not have a material impact on the Company. Accounting and reporting standards that are not yet effective: In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which amends the accounting guidance for credit losses on financial instruments. The updated guidance amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. This guidance also applies a new current expected credit loss model for determining credit-related impairments for financial instruments measured at amortized cost, such as reinsurance recoverables. The updated guidance is effective for reporting periods beginning after December 15, 2019. The Company will not be able to determine the impact the adoption of this guidance will have on its results of operations, financial position or liquidity until the year the guidance becomes effective. All other recently issued but not yet effective accounting and reporting standards are either not applicable to the Company or are not expected to have a material impact on the Company. |
Per Share Data (Tables)
Per Share Data (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Weighted average number of common shares | The weighted average number of common shares used in the computation of basic and diluted earnings per share was as follows: For the Three Months For the Six Months (In thousands) 2019 2018 2019 2018 Basic 190,512 189,776 190,456 189,669 Diluted 193,059 192,509 192,804 192,284 |
Consolidated Statements of Co_3
Consolidated Statements of Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Components of changes in accumulated other comprehensive income (loss) | The following table presents the components of the changes in accumulated other comprehensive (loss) income ("AOCI"): (In thousands) Unrealized Investment Gains (Losses) Currency Translation Adjustments Accumulated Other Comprehensive (Loss) Income As of and for the six months ended June 30, 2019 Changes in AOCI Beginning of period $ (91,491 ) $ (418,979 ) $ (510,470 ) Other comprehensive income before reclassifications 245,615 5,268 250,883 Amounts reclassified from AOCI (1,191 ) — (1,191 ) Other comprehensive income 244,424 5,268 249,692 Unrealized investment loss related to noncontrolling interest (18 ) — (18 ) End of period $ 152,915 $ (413,711 ) $ (260,796 ) Amounts reclassified from AOCI Pre-tax $ (1,508 ) (1) $ — $ (1,508 ) Tax effect 317 (2) — 317 After-tax amounts reclassified $ (1,191 ) $ — $ (1,191 ) Other comprehensive income Pre-tax $ 316,331 $ 5,268 $ 321,599 Tax effect (71,907 ) — (71,907 ) Other comprehensive income $ 244,424 $ 5,268 $ 249,692 As of and for the three months ended June 30, 2019 Changes in AOCI Beginning of period $ 34,236 $ (399,219 ) $ (364,983 ) Other comprehensive income (loss) before reclassifications 118,475 (14,492 ) 103,983 Amounts reclassified from AOCI 174 — 174 Other comprehensive income (loss) 118,649 (14,492 ) 104,157 Unrealized investment losses related to noncontrolling interest 30 — 30 Ending balance $ 152,915 $ (413,711 ) $ (260,796 ) Amounts reclassified from AOCI Pre-tax $ 220 (1) $ — $ 220 Tax effect (46 ) (2) — (46 ) After-tax amounts reclassified $ 174 $ — $ 174 Other comprehensive income (loss) Pre-tax $ 147,072 $ (14,492 ) $ 132,580 Tax effect (28,423 ) — (28,423 ) Other comprehensive income (loss) $ 118,649 $ (14,492 ) $ 104,157 _________________________ (1) Net realized and unrealized gains on investments in the consolidated statements of income. (2) Income tax expense in the consolidated statements of income. (In thousands) Unrealized Investment Gains (Losses) Currency Translation Adjustments Accumulated Other Comprehensive (Loss) Income As of and for the six months ended June 30, 2018 Changes in AOCI Beginning of period $ 375,421 $ (306,880 ) $ 68,541 Cumulative effect adjustment resulting from changes in accounting principles (214,539 ) — (214,539 ) Restated beginning of period 160,882 (306,880 ) (145,998 ) Other comprehensive loss before reclassifications (147,632 ) (91,656 ) (239,288 ) Amounts reclassified from AOCI (10,582 ) — (10,582 ) Other comprehensive loss (158,214 ) (91,656 ) (249,870 ) Unrealized investment loss related to noncontrolling interest 26 — 26 End of period $ 2,694 $ (398,536 ) $ (395,842 ) Amounts reclassified from AOCI Pre-tax $ (13,395 ) (1) $ — $ (13,395 ) Tax effect 2,813 (2) — 2,813 After-tax amounts reclassified $ (10,582 ) $ — $ (10,582 ) Other comprehensive loss Pre-tax $ (201,336 ) $ (91,656 ) $ (292,992 ) Tax effect 43,122 — 43,122 Other comprehensive loss $ (158,214 ) $ (91,656 ) $ (249,870 ) As of and for the three months ended June 30, 2018 Changes in AOCI Beginning of period $ 35,099 $ (294,081 ) $ (258,982 ) Other comprehensive loss before reclassifications (29,443 ) (104,455 ) (133,898 ) Amounts reclassified from AOCI (2,999 ) — (2,999 ) Other comprehensive loss (32,442 ) (104,455 ) (136,897 ) Unrealized investment loss related to noncontrolling interest 37 — 37 Ending balance $ 2,694 $ (398,536 ) $ (395,842 ) Amounts reclassified from AOCI Pre-tax $ (3,796 ) (1) $ — $ (3,796 ) Tax effect 797 (2) — 797 After-tax amounts reclassified $ (2,999 ) $ — $ (2,999 ) Other comprehensive loss Pre-tax $ (40,488 ) $ (104,455 ) $ (144,943 ) Tax effect 8,046 — 8,046 Other comprehensive loss $ (32,442 ) $ (104,455 ) $ (136,897 ) _________________________ (1) Net realized and unrealized gains on investments in the consolidated statements of income. (2) Income tax expense in the consolidated statements of income. |
Investments in Fixed Maturity_2
Investments in Fixed Maturity Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investments in fixed maturity securities | At June 30, 2019 and December 31, 2018 , investments in fixed maturity securities were as follows: (In thousands) Amortized Cost Gross Unrealized Fair Value Carrying Value Gains Losses June 30, 2019 Held to maturity: State and municipal $ 69,167 $ 13,089 $ — $ 82,256 $ 69,167 Residential mortgage-backed 9,380 1,083 — 10,463 9,380 Total held to maturity 78,547 14,172 — 92,719 78,547 Available for sale: U.S. government and government agency 760,247 18,241 (1,418 ) 777,070 777,070 State and municipal: Special revenue 2,322,750 63,204 (2,674 ) 2,383,280 2,383,280 State general obligation 320,338 22,108 (43 ) 342,403 342,403 Pre-refunded 298,825 19,876 (122 ) 318,579 318,579 Corporate backed 238,319 7,065 (639 ) 244,745 244,745 Local general obligation 427,233 32,026 (443 ) 458,816 458,816 Total state and municipal 3,607,465 144,279 (3,921 ) 3,747,823 3,747,823 Mortgage-backed securities: Residential (1) 1,242,880 28,521 (5,316 ) 1,266,085 1,266,085 Commercial 303,332 6,829 (380 ) 309,781 309,781 Total mortgage-backed securities 1,546,212 35,350 (5,696 ) 1,575,866 1,575,866 Asset-backed 2,719,618 9,874 (27,707 ) 2,701,785 2,701,785 Corporate: Industrial 2,178,339 59,623 (7,755 ) 2,230,207 2,230,207 Financial 1,431,612 27,484 (5,373 ) 1,453,723 1,453,723 Utilities 312,200 12,548 (426 ) 324,322 324,322 Other 27,027 1,096 (90 ) 28,033 28,033 Total corporate 3,949,178 100,751 (13,644 ) 4,036,285 4,036,285 Foreign government 818,276 20,507 (23,359 ) 815,424 815,424 Total available for sale 13,400,996 329,002 (75,745 ) 13,654,253 13,654,253 Total investments in fixed maturity securities $ 13,479,543 $ 343,174 $ (75,745 ) $ 13,746,972 $ 13,732,800 (In thousands) Amortized Gross Unrealized Fair Carrying Gains Losses December 31, 2018 Held to maturity: State and municipal $ 67,891 $ 11,549 $ — $ 79,440 $ 67,891 Residential mortgage-backed 10,744 1,259 — 12,003 10,744 Total held to maturity 78,635 12,808 — 91,443 78,635 Available for sale: U.S. government and government agency 697,931 9,219 (4,910 ) 702,240 702,240 State and municipal: Special revenue 2,396,089 30,507 (19,790 ) 2,406,806 2,406,806 State general obligation 335,626 11,951 (1,103 ) 346,474 346,474 Pre-refunded 408,141 16,568 (30 ) 424,679 424,679 Corporate backed 272,440 4,319 (2,350 ) 274,409 274,409 Local general obligation 403,219 18,350 (1,339 ) 420,230 420,230 Total state and municipal 3,815,515 81,695 (24,612 ) 3,872,598 3,872,598 Mortgage-backed securities: Residential (1) 1,264,376 7,729 (20,225 ) 1,251,880 1,251,880 Commercial 345,070 1,304 (3,708 ) 342,666 342,666 Total mortgage-backed securities 1,609,446 9,033 (23,933 ) 1,594,546 1,594,546 Asset-backed 2,462,303 10,131 (33,687 ) 2,438,747 2,438,747 Corporate: Industrial 2,295,778 15,355 (53,312 ) 2,257,821 2,257,821 Financial 1,502,427 7,178 (45,683 ) 1,463,922 1,463,922 Utilities 330,326 2,997 (4,148 ) 329,175 329,175 Other 60,238 322 (167 ) 60,393 60,393 Total corporate 4,188,769 25,852 (103,310 ) 4,111,311 4,111,311 Foreign government 822,093 11,753 (25,111 ) 808,735 808,735 Total available for sale 13,596,057 147,683 (215,563 ) 13,528,177 13,528,177 Total investments in fixed maturity securities $ 13,674,692 $ 160,491 $ (215,563 ) $ 13,619,620 $ 13,606,812 ____________ (1) Gross unrealized losses for residential mortgage-backed securities include $(42,762) and $(55,090) as of June 30, 2019 and December 31, 2018 , respectively, related to securities with the non-credit portion of other-than-temporary impairments (“OTTI”) recognized in accumulated other comprehensive income. |
Amortized cost and fair value of fixed maturity securities by contractual maturity | The amortized cost and fair value of fixed maturity securities at June 30, 2019 , by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations. (In thousands) Amortized Cost Fair Value Due in one year or less $ 1,017,744 $ 1,022,427 Due after one year through five years 4,680,578 4,764,795 Due after five years through ten years 3,226,328 3,347,580 Due after ten years 2,999,301 3,025,841 Mortgage-backed securities 1,555,592 1,586,329 Total $ 13,479,543 $ 13,746,972 |
Investments in Equity Securit_2
Investments in Equity Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity securities | |
Debt Securities, Available-for-sale [Line Items] | |
Schedule of Investments in Equity Securities | At June 30, 2019 and December 31, 2018 , investments in equity securities were as follows: (In thousands) Cost Gross Unrealized Fair Value Carrying Value Gains Losses June 30, 2019 Common stocks $ 153,440 $ 8,092 $ (21,306 ) $ 140,226 $ 140,226 Preferred stocks 101,423 180,316 (5,377 ) 276,362 276,362 Total $ 254,863 $ 188,408 $ (26,683 ) $ 416,588 $ 416,588 December 31, 2018 Common stocks $ 113,576 $ 4,335 $ (19,719 ) $ 98,192 $ 98,192 Preferred stocks 115,201 72,364 (6,751 ) 180,814 180,814 Total $ 228,777 $ 76,699 $ (26,470 ) $ 279,006 $ 279,006 |
Net Investment Income (Tables)
Net Investment Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Net Investment Income [Abstract] | |
Schedule of Net Investment Income | Net investment income consists of the following: For the Three Months For the Six Months (In thousands) 2019 2018 2019 2018 Investment income earned on: Fixed maturity securities, including cash and cash equivalents and loans receivable $ 128,903 $ 129,665 $ 261,022 $ 252,911 Investment funds 46,840 12,716 58,251 53,070 Arbitrage trading account 7,199 8,333 17,784 13,524 Real estate 5,174 3,174 9,481 9,742 Equity securities 1,303 559 2,591 1,205 Gross investment income 189,419 154,447 349,129 330,452 Investment expense (1,086 ) (670 ) (2,542 ) (2,157 ) Net investment income $ 188,333 $ 153,777 $ 346,587 $ 328,295 |
Investment Funds (Tables)
Investment Funds (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investment Funds | Investment funds consisted of the following: Carrying Value as of Income (Loss) from Investment Funds June 30, December 31, For the Six Months (In thousands) 2019 2018 2019 2018 Real estate $ 654,610 $ 642,137 $ 13,078 $ 35,826 Energy 75,053 75,213 (7,100 ) (1,256 ) Other funds 671,908 615,468 52,273 18,500 Total $ 1,401,571 $ 1,332,818 $ 58,251 $ 53,070 |
Real Estate (Tables)
Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate [Abstract] | |
Schedule of Real Estate Investments | Investment in real estate represents directly owned property held for investment, as follows: Carrying Value June 30, December 31, (In thousands) 2019 2018 Properties in operation $ 1,310,149 $ 1,279,584 Properties under development 757,395 677,508 Total $ 2,067,544 $ 1,957,092 |
Loans Receivable Loans Receivab
Loans Receivable Loans Receivable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Loans Receivable | Loans receivable are as follows: (In thousands) June 30, 2019 December 31, 2018 Amortized cost (net of valuation allowance): Real estate loans $ 61,830 $ 62,289 Commercial loans 32,867 32,524 Total $ 94,697 $ 94,813 Fair value: Real estate loans $ 62,536 $ 63,047 Commercial loans 34,369 34,026 Total $ 96,905 $ 97,073 Valuation allowance: Specific $ 341 $ 1,200 General 1,949 2,183 Total $ 2,290 $ 3,383 For the Three Months 2019 2018 Change in valuation allowance $ (1,093 ) $ — For the Six Months 2019 2018 Change in valuation allowance $ (1,093 ) $ — |
Realized And Unrealized Inves_2
Realized And Unrealized Investment Gains (Losses) on Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Realized and Unrealized Investment Gains (Losses) [Abstract] | |
Realized And Unrealized Investment Gains (Losses) | Net realized and unrealized gains (losses) on investments are as follows: For the Three Months For the Six Months (In thousands) 2019 2018 2019 2018 Net realized and unrealized gains (losses) on investments in earnings Fixed maturity securities: Gains $ 3,157 $ 7,921 $ 8,403 $ 21,260 Losses (3,377 ) (4,125 ) (6,895 ) (7,865 ) Equity securities (1): Net realized (losses) gains on investment sales (6 ) 119,422 23,339 241,743 Change in unrealized gains (losses) 69,418 (54,652 ) 111,496 (148,857 ) Investment funds 41 (353 ) 58 (234 ) Real estate 3,021 (402 ) 5,767 7,596 Loans receivable — 1 (970 ) 2,059 Other 1,320 1,819 1,028 2,393 Net realized and unrealized gains on investments in earnings before OTTI 73,574 69,631 142,226 118,095 Other-than-temporary impairments — — — — Net realized and unrealized gains on investments in earnings 73,574 69,631 142,226 118,095 Income tax expense (15,451 ) (14,623 ) (29,867 ) (24,800 ) After-tax net realized and unrealized gains on investments in earnings $ 58,123 $ 55,008 $ 112,359 $ 93,295 Change in unrealized investment gains (losses) of available for sale securities: Fixed maturity securities $ 146,629 $ (36,848 ) $ 321,123 $ (196,575 ) Previously impaired fixed maturity securities 81 (2 ) 12 11 Investment funds 361 (3,638 ) (4,804 ) (4,772 ) Total change in unrealized investment gains (losses) 147,071 (40,488 ) 316,331 (201,336 ) Income tax (expense) benefit (28,422 ) 8,118 (71,907 ) 43,194 Noncontrolling interests 30 37 (18 ) 26 After-tax change in unrealized investment gains (losses) of available for sale securities $ 118,679 $ (32,333 ) $ 244,406 $ (158,116 ) ______________________ (1) The net realized gains or losses on investment sales represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized gains consists of two components: (i) the reversal of the gain or loss recognized in previous periods on equity securities sold and (ii) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held. |
Fixed Maturity Securities In _2
Fixed Maturity Securities In An Unrealized Loss Position (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities in an unrealized loss position | The following tables summarize all fixed maturity securities in an unrealized loss position at June 30, 2019 and December 31, 2018 by the length of time those securities have been continuously in an unrealized loss position: Less Than 12 Months 12 Months or Greater Total (In thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2019 U.S. government and government agency $ 6,175 $ 37 $ 92,729 $ 1,381 $ 98,904 $ 1,418 State and municipal 64,499 838 270,454 3,083 334,953 3,921 Mortgage-backed securities 23,049 112 334,887 5,584 357,936 5,696 Asset-backed securities 1,010,706 17,410 572,110 10,297 1,582,816 27,707 Corporate 139,627 1,095 328,409 12,549 468,036 13,644 Foreign government 140,589 18,942 73,967 4,417 214,556 23,359 Fixed maturity securities $ 1,384,645 $ 38,434 $ 1,672,556 $ 37,311 $ 3,057,201 $ 75,745 December 31, 2018 U.S. government and government agency $ 195,359 $ 933 $ 130,815 $ 3,977 $ 326,174 $ 4,910 State and municipal 701,700 6,874 744,905 17,738 1,446,605 24,612 Mortgage-backed securities 334,063 2,911 712,595 21,022 1,046,658 23,933 Asset-backed securities 1,687,665 28,965 342,855 4,722 2,030,520 33,687 Corporate 1,730,513 54,181 954,763 49,129 2,685,276 103,310 Foreign government 246,273 24,197 80,004 914 326,277 25,111 Fixed maturity securities $ 4,895,573 $ 118,061 $ 2,965,937 $ 97,502 $ 7,861,510 $ 215,563 |
Non-Investment Grade Fixed Maturity Securities | A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at June 30, 2019 is presented in the table below: ($ in thousands) Number of Securities Aggregate Fair Value Gross Unrealized Loss Foreign government 12 $ 114,714 $ 22,719 Corporate 11 65,905 3,278 Asset-backed securities 7 10,412 1,344 Mortgage-backed securities 4 7,170 63 Total 34 $ 198,201 $ 27,404 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets And Liabilities Measured At Fair value, On A Recurring Basis | The following tables present the assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018 by level: (In thousands) Total Level 1 Level 2 Level 3 June 30, 2019 Assets: Fixed maturity securities available for sale: U.S. government and government agency $ 777,070 $ — $ 777,070 $ — State and municipal 3,747,823 — 3,747,823 — Mortgage-backed securities 1,575,866 — 1,575,866 — Asset-backed securities 2,701,785 — 2,701,760 25 Corporate 4,036,285 — 4,036,285 — Foreign government 815,424 — 815,424 — Total fixed maturity securities available for sale 13,654,253 — 13,654,228 25 Equity securities: Common stocks 140,226 131,242 — 8,984 Preferred stocks 276,362 — 272,426 3,936 Total equity securities 416,588 131,242 272,426 12,920 Arbitrage trading account 533,442 424,030 83,206 26,206 Total $ 14,604,283 $ 555,272 $ 14,009,860 $ 39,151 Liabilities: Trading account securities sold but not yet purchased $ 159,349 $ 144,420 $ 213 $ 14,716 December 31, 2018 Assets: Fixed maturity securities available for sale: U.S. government and government agency $ 702,240 $ — $ 702,240 $ — State and municipal 3,872,598 — 3,872,598 — Mortgage-backed securities 1,594,546 — 1,594,546 — Asset-backed securities 2,438,747 — 2,438,648 99 Corporate 4,111,311 — 4,111,311 — Foreign government 808,735 — 808,735 — Total fixed maturity securities available for sale 13,528,177 — 13,528,078 99 Equity securities: Common stocks 98,192 89,596 — 8,596 Preferred stocks 180,814 — 176,869 3,945 Total equity securities 279,006 89,596 176,869 12,541 Arbitrage trading account 452,548 353,335 81,905 17,308 Total $ 14,259,731 $ 442,931 $ 13,786,852 $ 29,948 Liabilities: Trading account securities sold but not yet purchased $ 38,120 $ 37,327 $ — $ 793 |
Summarize Changes In Level 3 Assets | The following tables summarize changes in Level 3 assets and liabilities for the six months ended June 30, 2019 and for the year ended December 31, 2018 : Gains (Losses) Included in: (In thousands) Beginning Balance Earnings (Losses) Other Comprehensive Income (Loss) Impairments Purchases (Sales) Paydowns / Maturities Transfers In / (Out) Ending Balance Six Months Ended Assets: Fixed maturities securities available for sale: Asset-backed securities $ 99 $ 2 $ 46 $ — $ — $ (122 ) $ — $ — $ 25 Total 99 2 46 — — (122 ) — — 25 Equity securities: Common stocks 8,596 388 — — — — — — 8,984 Preferred stocks 3,945 (9 ) — — — — — — 3,936 Total 12,541 379 — — — — — — 12,920 Arbitrage trading account 17,308 409 — — 14,672 (21,072 ) — 14,889 26,206 Total $ 29,948 $ 790 $ 46 $ — $ 14,672 $ (21,194 ) $ — $ 14,889 $ 39,151 Liabilities: Trading account securities sold but not yet purchased $ 793 $ 9,320 $ — $ — $ 7,609 $ (3,006 ) $ — $ — $ 14,716 Year Ended Assets: Fixed maturities securities available for sale: Asset-backed securities $ 172 $ (2 ) $ 46 $ — $ — $ (117 ) $ — $ — $ 99 Total 172 (2 ) 46 — — (117 ) — — 99 Equity securities: Common stocks 9,370 (548 ) — — — (227 ) — 1 8,596 Preferred stocks 10,843 100 — — (6,998 ) — — 3,945 Total 20,213 (448 ) — — — (7,225 ) — 1 12,541 Arbitrage trading account — (6 ) — — 11,523 (11 ) — 5,802 17,308 Total $ 20,385 $ (456 ) $ 46 $ — $ 11,523 $ (7,353 ) $ — $ 5,803 $ 29,948 Liabilities: Trading account securities sold but not yet purchased $ — $ (67 ) $ — $ — $ 860 $ — $ — $ — $ 793 |
Reserves for Loss and Loss Ex_2
Reserves for Loss and Loss Expenses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Reserve Balances | The table below provides a reconciliation of the beginning and ending reserve balances: June 30, (In thousands) 2019 2018 Net reserves at beginning of period $ 10,248,883 $ 10,056,914 Net provision for losses and loss expenses: Claims occurring during the current year (1) 1,980,138 1,916,140 Increase (decrease) in estimates for claims occurring in prior years (2) (3) 16,764 (246 ) Loss reserve discount accretion 20,577 20,962 Total 2,017,479 1,936,856 Net payments for claims: Current year 548,589 316,567 Prior years 1,200,906 1,527,522 Total 1,749,495 1,844,089 Foreign currency translation (2,228 ) (72,351 ) Net reserves at end of period 10,514,639 10,077,330 Ceded reserves at end of period 1,805,639 1,659,245 Gross reserves at end of period $ 12,320,278 $ 11,736,575 _______________________________________ (1) Claims occurring during the current year are net of loss reserve discounts of $ 11 million and $13 million for the six months ended June 30, 2019 and 2018 . (2) The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years increased by $ 9 million and decreased by $ 6 million for the six months ended June 30, 2019 and 2018 , respectively. (3) For certain retrospectively rated insurance policies and reinsurance agreements, reserve development is offset by additional or return premiums. Favorable development, net of additional and return premiums, was $14 million and $19 million for the six months ended June 30, 2019 and 2018 , respectively. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts And Estimated Fair Values Of Financial Instruments | The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments: June 30, 2019 December 31, 2018 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Assets: Fixed maturity securities $ 13,732,800 $ 13,746,972 $ 13,606,812 $ 13,619,620 Equity securities 416,588 416,588 279,006 279,006 Arbitrage trading account 533,442 533,442 452,548 452,548 Loans receivable 94,697 96,905 94,813 97,073 Cash and cash equivalents 1,258,174 1,258,174 817,602 817,602 Trading account receivables from brokers and clearing organizations 402,361 402,361 347,228 347,228 Liabilities: Due to broker 39,230 39,230 20,144 20,144 Trading account securities sold but not yet purchased 159,349 159,349 38,120 38,120 Subordinated debentures 907,866 969,172 907,491 840,002 Senior notes and other debt 1,873,799 2,019,430 1,882,028 1,968,996 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Reinsurance Financial Information | The following is a summary of reinsurance financial information: For the Three Months For the Six Months (In thousands) 2019 2018 2019 2018 Written premiums: Direct $ 1,883,032 $ 1,785,266 $ 3,712,847 $ 3,572,501 Assumed 206,828 162,808 423,243 354,995 Ceded (346,396 ) (323,970 ) (683,025 ) (638,054 ) Total net premiums written $ 1,743,464 $ 1,624,104 $ 3,453,065 $ 3,289,442 Earned premiums: Direct $ 1,773,437 $ 1,705,277 $ 3,497,047 $ 3,379,827 Assumed 198,661 180,509 386,852 369,375 Ceded (325,257 ) (304,733 ) (644,202 ) (600,741 ) Total net premiums earned $ 1,646,841 $ 1,581,053 $ 3,239,697 $ 3,148,461 Ceded losses and loss expenses incurred $ 239,267 $ 161,073 $ 412,314 $ 400,068 Ceded commissions earned $ 73,092 $ 65,922 $ 144,109 $ 132,278 |
Restricted Stock Units (Tables)
Restricted Stock Units (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary Of Restricted Stock Units Issued | A summary of RSUs issued in the six months ended June 30, 2019 and 2018 follows: ($ in thousands) Units Fair Value 2019 5,141 $ 308 2018 19,538 $ 963 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | Further information relating to operating lease expense and other operating lease information are as follows: For the Three Months Ended For the Six Months Ended (In thousands) Leases: Lease cost $ 10,680 $ 22,235 Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows $ 11,132 $ 22,789 Right-of-use assets obtained in exchange for new lease liabilities $ 2,918 $ 7,884 |
Supplemental Balance Sheet Information | ($ in thousands) June 30, 2019 Right-of-use assets $ 179,984 Lease liabilities $ 209,107 Weighted-average remaining lease term 6.6 years Weighted-average discount rate 5.97 % |
Maturities of Operating Lease Liabilities | Contractual maturities of the Company’s future minimum lease payments are as follows: (In thousands) June 30, 2019 Contractual Maturities: 2019 $ 24,117 2020 44,461 2021 40,681 2022 35,121 2023 31,556 Thereafter 77,578 Total undiscounted future minimum lease payments 253,514 Less: Discount impact (44,407 ) Total lease liability $ 209,107 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Financial Information Of Company Operating Segments | Revenues (In thousands) Earned Premiums (1) Investment Income Other Total (2) Pre-Tax Income (Loss) Net Income (Loss) to Common Stockholders Three months ended June 30, 2019 Insurance $ 1,475,184 $ 132,403 $ 13,687 $ 1,621,274 $ 225,871 $ 179,241 Reinsurance & Monoline Excess 171,657 44,449 — 216,106 52,635 41,864 Corporate, other and eliminations (3) — 11,481 100,949 112,430 (78,344 ) (62,519 ) Net realized and unrealized gains on investments — — 73,574 73,574 73,574 58,123 Total $ 1,646,841 $ 188,333 $ 188,210 $ 2,023,384 $ 273,736 $ 216,709 Three months ended June 30, 2018 Insurance $ 1,415,579 $ 94,542 $ 18,707 $ 1,528,828 $ 163,181 $ 128,693 Reinsurance & Monoline Excess 165,474 41,914 — 207,388 56,174 44,291 Corporate, other and eliminations (3) — 17,321 87,748 105,069 (59,744 ) (47,917 ) Net realized and unrealized gains on investments — — 69,631 69,631 69,631 55,008 Total $ 1,581,053 $ 153,777 $ 176,086 $ 1,910,916 $ 229,242 $ 180,075 Six months ended June 30, 2019 Insurance $ 2,902,218 $ 232,444 $ 26,931 $ 3,161,593 $ 410,387 $ 325,234 Reinsurance & Monoline Excess 337,479 84,023 — 421,502 97,490 77,389 Corporate, other and eliminations (3) — 30,120 204,965 235,085 (146,928 ) (117,551 ) Net realized and unrealized gains on investments — — 142,226 142,226 142,226 112,359 Total $ 3,239,697 $ 346,587 $ 374,122 $ 3,960,406 $ 503,175 $ 397,431 Six Months Ended June 30, 2018 Insurance $ 2,806,868 $ 208,040 $ 37,675 $ 3,052,583 $ 362,109 $ 286,426 Reinsurance & Monoline Excess 341,593 88,928 — 430,521 100,866 79,838 Corporate, other and eliminations (3) — 31,327 169,637 200,964 (140,838 ) (113,087 ) Net realized and unrealized gains on investments — — 118,095 118,095 118,095 93,295 Total $ 3,148,461 $ 328,295 $ 325,407 $ 3,802,163 $ 440,232 $ 346,472 _________________ (1) Certain amounts included in earned premiums of each segment are related to inter-segment transactions. (2) Revenues for Insurance from foreign countries for the three months ended June 30, 2019 and 2018 were $179 million and $176 million , and for the six months ended June 30, 2019 and 2018 were $349 million and $359 million , respectively. Revenues for Reinsurance & Monoline Excess from foreign countries for the three months ended June 30, 2019 and 2018 were $62 million and $55 million , and for the six months ended June 30, 2019 and 2018 were $121 million and $112 million , respectively. (3) |
Identifiable Assets By Segment | (In thousands) June 30, December 31, Insurance $ 19,444,475 $ 18,214,293 Reinsurance & Monoline Excess 4,573,446 4,371,151 Corporate, other and eliminations 2,469,982 2,310,533 Consolidated $ 26,487,903 $ 24,895,977 |
Net Premiums Earned By Major Line Of Business | Net premiums earned by major line of business are as follows: For the Three Months For the Six Months (In thousands) 2019 2018 2019 2018 Insurance: Other liability $ 505,621 $ 474,721 $ 996,282 $ 938,889 Workers’ compensation 330,510 336,996 657,186 661,974 Short-tail lines (1) 305,852 288,320 594,943 583,347 Commercial automobile 188,278 175,812 369,203 351,010 Professional liability 144,923 139,730 284,604 271,648 Total Insurance 1,475,184 1,415,579 2,902,218 2,806,868 Reinsurance & Monoline Excess: Casualty reinsurance 95,109 86,841 185,939 177,411 Monoline excess (2) 39,400 40,429 78,381 81,477 Property reinsurance 37,148 38,204 73,159 82,705 Total Reinsurance & Monoline Excess 171,657 165,474 337,479 341,593 Total $ 1,646,841 $ 1,581,053 $ 3,239,697 $ 3,148,461 ______________ (1) Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery and other lines. (2) Monoline excess includes operations that solely retain risk on an excess basis. |
General (Details)
General (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Federal Income Tax Rate | 21.00% |
Per Share Data (Narrative) (Det
Per Share Data (Narrative) (Details) - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Weighted average number of shares held in grantor trust | 7,389,781 | 7,270,954 |
Per Share Data (Weighted Averag
Per Share Data (Weighted Average Number of Common Shares Used In the Computation of Basic and Diluted Earnings per Share) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Basic (shares) | 190,512 | 189,776 | 190,456 | 189,669 |
Diluted (shares) | 193,059 | 192,509 | 192,804 | 192,284 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | |||
Operating lease, right-of-use asset | $ 179,984 | ||
Operating lease, liability | $ 209,107 | ||
Deferred rent liability | $ 30,000 | ||
Accounting Standards Update 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, right-of-use asset | $ 185,000 | ||
Operating lease, liability | $ 215,000 |
Consolidated Statements of Co_4
Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning of period | $ 5,479,798 | ||||
Other comprehensive income (loss) | $ 104,157 | $ (136,897) | 249,692 | $ (249,870) | |
End of period | 6,020,078 | 6,020,078 | |||
Net realized and unrealized gains on investments | 73,574 | 69,631 | 142,226 | 118,095 | |
Income before income taxes | 273,736 | 229,242 | 503,175 | 440,232 | |
Tax effect | (56,309) | (48,464) | (104,134) | (91,881) | |
Net income before noncontrolling interests | 217,427 | 180,778 | 399,041 | 348,351 | |
Total change in unrealized investment gains (losses) | 147,071 | (40,488) | 316,331 | (201,336) | |
Net change in period | (14,492) | (104,455) | 5,268 | (91,656) | |
Other comprehensive income (loss), pre-tax | 132,580 | (144,943) | 321,599 | (292,992) | |
Other comprehensive income (loss), tax effect | (28,423) | 8,046 | (71,907) | 43,122 | |
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning of period | $ 68,541 | (364,983) | (258,982) | (510,470) | 68,541 |
Cumulative effect adjustment resulting from changes in accounting principles | (214,539) | ||||
Restated beginning of period | (145,998) | ||||
Other comprehensive income (loss) before reclassifications | 103,983 | (133,898) | 250,883 | (239,288) | |
Amounts reclassified from AOCI | 174 | (2,999) | (1,191) | (10,582) | |
Other comprehensive income (loss) | 104,157 | (136,897) | 249,692 | (249,870) | |
End of period | (260,796) | (395,842) | (260,796) | (395,842) | |
Unrealized investment loss related to noncontrolling interest | 30 | 37 | (18) | 26 | |
Accumulated Other Comprehensive Income (Loss) | Amounts reclassified from AOCI | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Income before income taxes | 220 | (3,796) | (1,508) | (13,395) | |
Tax effect | (46) | 797 | 317 | 2,813 | |
Net income before noncontrolling interests | 174 | (2,999) | (1,191) | (10,582) | |
Unrealized Investment Gains (Losses) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning of period | 375,421 | 34,236 | 35,099 | (91,491) | 375,421 |
Cumulative effect adjustment resulting from changes in accounting principles | (214,539) | ||||
Restated beginning of period | 160,882 | ||||
Other comprehensive income (loss) before reclassifications | 118,475 | (29,443) | 245,615 | (147,632) | |
Amounts reclassified from AOCI | 174 | (2,999) | (1,191) | (10,582) | |
Other comprehensive income (loss) | 118,649 | (32,442) | 244,424 | (158,214) | |
End of period | 152,915 | 2,694 | 152,915 | 2,694 | |
Unrealized investment loss related to noncontrolling interest | 30 | 37 | (18) | 26 | |
Total change in unrealized investment gains (losses) | 147,072 | (40,488) | 316,331 | (201,336) | |
Unrealized investment gains, tax effect | (28,423) | 8,046 | (71,907) | 43,122 | |
Unrealized investment gains (losses), after-tax amounts | 118,649 | (32,442) | 244,424 | (158,214) | |
Unrealized Investment Gains (Losses) | Amounts reclassified from AOCI | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Net realized and unrealized gains on investments | 220 | (3,796) | (1,508) | (13,395) | |
Tax effect | (46) | 797 | 317 | 2,813 | |
Net income before noncontrolling interests | 174 | (2,999) | (1,191) | (10,582) | |
Currency Translation Adjustments | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning of period | (306,880) | (399,219) | (294,081) | (418,979) | (306,880) |
Cumulative effect adjustment resulting from changes in accounting principles | 0 | ||||
Restated beginning of period | $ (306,880) | ||||
Other comprehensive income (loss) before reclassifications | (14,492) | (104,455) | 5,268 | (91,656) | |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss) | (14,492) | (104,455) | 5,268 | (91,656) | |
End of period | (413,711) | (398,536) | (413,711) | (398,536) | |
Unrealized investment loss related to noncontrolling interest | 0 | 0 | 0 | 0 | |
Currency translation adjustment, pre-tax | (14,492) | (104,455) | 5,268 | (91,656) | |
Currency translation adjustment, tax effect | 0 | 0 | 0 | 0 | |
Net change in period | (14,492) | (104,455) | 5,268 | (91,656) | |
Currency Translation Adjustments | Amounts reclassified from AOCI | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Income before income taxes | 0 | 0 | 0 | 0 | |
Tax effect | 0 | 0 | 0 | 0 | |
Net income before noncontrolling interests | $ 0 | $ 0 | $ 0 | $ 0 |
Statements of Cash Flow (Detail
Statements of Cash Flow (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest payments | $ 77,672,000 | $ 72,878,000 |
Income taxes paid | $ 82,800,000 | $ 111,000,000 |
Investments in Fixed Maturity_3
Investments in Fixed Maturity Securities (Investments in fixed maturity securities) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Total held to maturity, Amortized Cost | $ 78,547,000 | $ 78,635,000 |
Held to maturity, Gross Unrealized Gains | 14,172,000 | 12,808,000 |
Held to maturity, Gross Unrealized Losses | 0 | 0 |
Total held to maturity, Fair Value | 92,719,000 | 91,443,000 |
Total held to maturity, Carrying Value | 78,547,000 | 78,635,000 |
Total available for sale, Amortized Cost | 13,400,996,000 | 13,596,057,000 |
Total available for sale, Gross Unrealized Gains | 329,002,000 | 147,683,000 |
Total available for sale, Gross Unrealized Losses | (75,745,000) | (215,563,000) |
Total available for sale, Fair Value | 13,654,253,000 | 13,528,177,000 |
Total available for sale, Carrying Value | 13,654,253,000 | 13,528,177,000 |
Total investments in fixed maturity securities, Amortized Value | 13,479,543,000 | 13,674,692,000 |
Total investments in fixed maturity securities, Gross Unrealized Gains | 343,174,000 | 160,491,000 |
Total investments in fixed maturity securities, Gross Unrealized Losses | (75,745,000) | (215,563,000) |
Total investments in fixed maturity securities, Fair Value | 13,746,972,000 | 13,619,620,000 |
Total investments in fixed maturity securities, Carrying Value | 13,732,800,000 | 13,606,812,000 |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total held to maturity, Amortized Cost | 69,167,000 | 67,891,000 |
Held to maturity, Gross Unrealized Gains | 13,089,000 | 11,549,000 |
Held to maturity, Gross Unrealized Losses | 0 | 0 |
Total held to maturity, Fair Value | 82,256,000 | 79,440,000 |
Total held to maturity, Carrying Value | 69,167,000 | 67,891,000 |
Total available for sale, Amortized Cost | 3,607,465,000 | 3,815,515,000 |
Total available for sale, Gross Unrealized Gains | 144,279,000 | 81,695,000 |
Total available for sale, Gross Unrealized Losses | (3,921,000) | (24,612,000) |
Total available for sale, Fair Value | 3,747,823,000 | 3,872,598,000 |
Total available for sale, Carrying Value | 3,747,823,000 | 3,872,598,000 |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total held to maturity, Amortized Cost | 9,380,000 | 10,744,000 |
Held to maturity, Gross Unrealized Gains | 1,083,000 | 1,259,000 |
Held to maturity, Gross Unrealized Losses | 0 | 0 |
Total held to maturity, Fair Value | 10,463,000 | 12,003,000 |
Total held to maturity, Carrying Value | 9,380,000 | 10,744,000 |
Total available for sale, Amortized Cost | 1,242,880,000 | 1,264,376,000 |
Total available for sale, Gross Unrealized Gains | 28,521,000 | 7,729,000 |
Total available for sale, Gross Unrealized Losses | (5,316,000) | (20,225,000) |
Total available for sale, Fair Value | 1,266,085,000 | 1,251,880,000 |
Total available for sale, Carrying Value | 1,266,085,000 | 1,251,880,000 |
Gross unrealized gains (losses) related to securities | (42,762) | (55,090) |
U.S. government and government agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available for sale, Amortized Cost | 760,247,000 | 697,931,000 |
Total available for sale, Gross Unrealized Gains | 18,241,000 | 9,219,000 |
Total available for sale, Gross Unrealized Losses | (1,418,000) | (4,910,000) |
Total available for sale, Fair Value | 777,070,000 | 702,240,000 |
Total available for sale, Carrying Value | 777,070,000 | 702,240,000 |
Special revenue | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available for sale, Amortized Cost | 2,322,750,000 | 2,396,089,000 |
Total available for sale, Gross Unrealized Gains | 63,204,000 | 30,507,000 |
Total available for sale, Gross Unrealized Losses | (2,674,000) | (19,790,000) |
Total available for sale, Fair Value | 2,383,280,000 | 2,406,806,000 |
Total available for sale, Carrying Value | 2,383,280,000 | 2,406,806,000 |
State general obligation | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available for sale, Amortized Cost | 320,338,000 | 335,626,000 |
Total available for sale, Gross Unrealized Gains | 22,108,000 | 11,951,000 |
Total available for sale, Gross Unrealized Losses | (43,000) | (1,103,000) |
Total available for sale, Fair Value | 342,403,000 | 346,474,000 |
Total available for sale, Carrying Value | 342,403,000 | 346,474,000 |
Pre-refunded | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available for sale, Amortized Cost | 298,825,000 | 408,141,000 |
Total available for sale, Gross Unrealized Gains | 19,876,000 | 16,568,000 |
Total available for sale, Gross Unrealized Losses | (122,000) | (30,000) |
Total available for sale, Fair Value | 318,579,000 | 424,679,000 |
Total available for sale, Carrying Value | 318,579,000 | 424,679,000 |
Corporate backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available for sale, Amortized Cost | 238,319,000 | 272,440,000 |
Total available for sale, Gross Unrealized Gains | 7,065,000 | 4,319,000 |
Total available for sale, Gross Unrealized Losses | (639,000) | (2,350,000) |
Total available for sale, Fair Value | 244,745,000 | 274,409,000 |
Total available for sale, Carrying Value | 244,745,000 | 274,409,000 |
Local general obligation | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available for sale, Amortized Cost | 427,233,000 | 403,219,000 |
Total available for sale, Gross Unrealized Gains | 32,026,000 | 18,350,000 |
Total available for sale, Gross Unrealized Losses | (443,000) | (1,339,000) |
Total available for sale, Fair Value | 458,816,000 | 420,230,000 |
Total available for sale, Carrying Value | 458,816,000 | 420,230,000 |
Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available for sale, Amortized Cost | 303,332,000 | 345,070,000 |
Total available for sale, Gross Unrealized Gains | 6,829,000 | 1,304,000 |
Total available for sale, Gross Unrealized Losses | (380,000) | (3,708,000) |
Total available for sale, Fair Value | 309,781,000 | 342,666,000 |
Total available for sale, Carrying Value | 309,781,000 | 342,666,000 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available for sale, Amortized Cost | 1,546,212,000 | 1,609,446,000 |
Total available for sale, Gross Unrealized Gains | 35,350,000 | 9,033,000 |
Total available for sale, Gross Unrealized Losses | (5,696,000) | (23,933,000) |
Total available for sale, Fair Value | 1,575,866,000 | 1,594,546,000 |
Total available for sale, Carrying Value | 1,575,866,000 | 1,594,546,000 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available for sale, Amortized Cost | 2,719,618,000 | 2,462,303,000 |
Total available for sale, Gross Unrealized Gains | 9,874,000 | 10,131,000 |
Total available for sale, Gross Unrealized Losses | (27,707,000) | (33,687,000) |
Total available for sale, Fair Value | 2,701,785,000 | 2,438,747,000 |
Total available for sale, Carrying Value | 2,701,785,000 | 2,438,747,000 |
Industrial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available for sale, Amortized Cost | 2,178,339,000 | 2,295,778,000 |
Total available for sale, Gross Unrealized Gains | 59,623,000 | 15,355,000 |
Total available for sale, Gross Unrealized Losses | (7,755,000) | (53,312,000) |
Total available for sale, Fair Value | 2,230,207,000 | 2,257,821,000 |
Total available for sale, Carrying Value | 2,230,207,000 | 2,257,821,000 |
Financial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available for sale, Amortized Cost | 1,431,612,000 | 1,502,427,000 |
Total available for sale, Gross Unrealized Gains | 27,484,000 | 7,178,000 |
Total available for sale, Gross Unrealized Losses | (5,373,000) | (45,683,000) |
Total available for sale, Fair Value | 1,453,723,000 | 1,463,922,000 |
Total available for sale, Carrying Value | 1,453,723,000 | 1,463,922,000 |
Utilities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available for sale, Amortized Cost | 312,200,000 | 330,326,000 |
Total available for sale, Gross Unrealized Gains | 12,548,000 | 2,997,000 |
Total available for sale, Gross Unrealized Losses | (426,000) | (4,148,000) |
Total available for sale, Fair Value | 324,322,000 | 329,175,000 |
Total available for sale, Carrying Value | 324,322,000 | 329,175,000 |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available for sale, Amortized Cost | 27,027,000 | 60,238,000 |
Total available for sale, Gross Unrealized Gains | 1,096,000 | 322,000 |
Total available for sale, Gross Unrealized Losses | (90,000) | (167,000) |
Total available for sale, Fair Value | 28,033,000 | 60,393,000 |
Total available for sale, Carrying Value | 28,033,000 | 60,393,000 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available for sale, Amortized Cost | 3,949,178,000 | 4,188,769,000 |
Total available for sale, Gross Unrealized Gains | 100,751,000 | 25,852,000 |
Total available for sale, Gross Unrealized Losses | (13,644,000) | (103,310,000) |
Total available for sale, Fair Value | 4,036,285,000 | 4,111,311,000 |
Total available for sale, Carrying Value | 4,036,285,000 | 4,111,311,000 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available for sale, Amortized Cost | 818,276,000 | 822,093,000 |
Total available for sale, Gross Unrealized Gains | 20,507,000 | 11,753,000 |
Total available for sale, Gross Unrealized Losses | (23,359,000) | (25,111,000) |
Total available for sale, Fair Value | 815,424,000 | 808,735,000 |
Total available for sale, Carrying Value | $ 815,424,000 | $ 808,735,000 |
Investments in Fixed Maturity_4
Investments in Fixed Maturity Securities (Amortized cost and fair value of fixed maturity securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost, Due in one year or less | $ 1,017,744 | |
Amortized Cost, Due after one year through five years | 4,680,578 | |
Amortized Cost, Due after five years through ten years | 3,226,328 | |
Amortized Cost, Due after ten years | 2,999,301 | |
Amortized Cost, Mortgaged-backed securities | 1,555,592 | |
Total investments in fixed maturity securities, Amortized Value | 13,479,543 | $ 13,674,692 |
Fair Value, Due in one year or less | 1,022,427 | |
Fair Value, Due after one year through five years | 4,764,795 | |
Fair Value, Due after five years through ten years | 3,347,580 | |
Fair Value, Due after ten years | 3,025,841 | |
Fair Value, Mortgage-backed securities | 1,586,329 | |
Total investments in fixed maturity securities, Fair Value | $ 13,746,972 | $ 13,619,620 |
Investments in Equity Securit_3
Investments in Equity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | $ 416,588 | $ 279,006 |
Fair Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 254,863 | 228,777 |
Gross Unrealized, Gains | 188,408 | 76,699 |
Gross Unrealized, Losses | (26,683) | (26,470) |
Equity securities | 416,588 | 279,006 |
Fair Value | Common stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 153,440 | 113,576 |
Gross Unrealized, Gains | 8,092 | 4,335 |
Gross Unrealized, Losses | (21,306) | (19,719) |
Equity securities | 140,226 | 98,192 |
Fair Value | Preferred stocks | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 101,423 | 115,201 |
Gross Unrealized, Gains | 180,316 | 72,364 |
Gross Unrealized, Losses | (5,377) | (6,751) |
Equity securities | 276,362 | 180,814 |
Carrying Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | 416,588 | 279,006 |
Carrying Value | Common stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | 140,226 | 98,192 |
Carrying Value | Preferred stocks | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | $ 276,362 | $ 180,814 |
Arbitrage Trading Account (Deta
Arbitrage Trading Account (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Arbitrage trading account | $ 533,442 | $ 452,548 |
Long | Options held | ||
Derivative [Line Items] | ||
Fair value of derivative | 313 | |
Notional amount of derivative | 9,900 | |
Short | Options held | ||
Derivative [Line Items] | ||
Fair value of derivative | 291 | |
Notional amount of derivative | $ 15,600 |
Net Investment Income (Details)
Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 189,419 | $ 154,447 | $ 349,129 | $ 330,452 |
Investment expense | (1,086) | (670) | (2,542) | (2,157) |
Net investment income | 188,333 | 153,777 | 346,587 | 328,295 |
Fixed maturity securities, including cash and cash equivalents and loans receivable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 128,903 | 129,665 | 261,022 | 252,911 |
Investment funds | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 46,840 | 12,716 | 58,251 | 53,070 |
Arbitrage trading account | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 7,199 | 8,333 | 17,784 | 13,524 |
Real estate | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 5,174 | 3,174 | 9,481 | 9,742 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | $ 1,303 | $ 559 | $ 2,591 | $ 1,205 |
Investment Funds (Details)
Investment Funds (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Unfunded commitments | $ 241,000 | ||
Investment funds | 1,401,571 | $ 1,332,818 | |
Income (Loss) from Investment Funds | $ 53,070 | 58,251 | |
Real estate | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment funds | 654,610 | 642,137 | |
Income (Loss) from Investment Funds | 35,826 | 13,078 | |
Energy | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment funds | 75,053 | 75,213 | |
Income (Loss) from Investment Funds | (1,256) | (7,100) | |
Other funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment funds | 671,908 | $ 615,468 | |
Income (Loss) from Investment Funds | $ 18,500 | $ 52,273 |
Real Estate (Details)
Real Estate (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Real Estate [Abstract] | ||
Properties in operation | $ 1,310,149 | $ 1,279,584 |
Properties under development | 757,395 | 677,508 |
Total | $ 2,067,544 | $ 1,957,092 |
Real Estate (Narrative) (Detail
Real Estate (Narrative) (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Accumulated depreciation and amortization on properties | $ 55,515,000 | $ 46,250,000 | |
Real estate depreciation expense | 8,931,000 | $ 10,784,000 | |
Lease future minimum payments 2019 | 32,963,388 | ||
Lease future minimum payments 2020 | 66,249,918 | ||
Lease future minimum payments 2021 | 68,157,589 | ||
Lease future minimum payments 2022 | 71,308,839 | ||
Lease future minimum payments 2023 | 64,897,648 | ||
Lease future minimum payments 2024 | 62,673,400 | ||
Lease future minimum payments there after | $ 666,203,503 | ||
Secured Debt | |||
Debt Instrument [Line Items] | |||
Fae value of debt | $ 101,750,000,000 | ||
Interest rate, percent | 4.21% |
Loans Receivable (Details)
Loans Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans receivable, gross | $ 94,697 | $ 94,697 | $ 94,813 | ||
Loans receivable | 96,905 | 96,905 | 97,073 | ||
Valuation allowance, specific | 341 | 341 | 1,200 | ||
Valuation allowance, general | 1,949 | 1,949 | 2,183 | ||
Valuation allowance of loans receivable | 2,290 | 2,290 | 3,383 | ||
Change in valuation allowance | (1,093) | $ 0 | (1,093) | $ 0 | |
Loans in nonaccrual status | 400 | 400 | 1,200 | ||
Real estate loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans receivable, gross | 61,830 | 61,830 | 62,289 | ||
Loans receivable | 62,536 | 62,536 | 63,047 | ||
Commercial loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans receivable, gross | 32,867 | 32,867 | 32,524 | ||
Loans receivable | $ 34,369 | $ 34,369 | $ 34,026 |
Realized And Unrealized Inves_3
Realized And Unrealized Investment Gains (Losses) on Investments (Realized and Unrealized Investments Gains (Losses)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Fixed maturity securities, gains | $ 3,157 | $ 7,921 | $ 8,403 | $ 21,260 |
Fixed maturity securities, losses | (3,377) | (4,125) | (6,895) | (7,865) |
Net realized (losses) gains on investment sales | (6) | 119,422 | 23,339 | 241,743 |
Change in unrealized gains (losses) | 69,418 | (54,652) | 111,496 | (148,857) |
Investment funds | 41 | (353) | 58 | (234) |
Real estate | 3,021 | (402) | 5,767 | 7,596 |
Loans receivable | 0 | 1 | (970) | 2,059 |
Other | 1,320 | 1,819 | 1,028 | 2,393 |
Net realized and unrealized gains on investments in earnings before OTTI | 73,574 | 69,631 | 142,226 | 118,095 |
Other-than-temporary impairments | 0 | 0 | 0 | 0 |
Net realized and unrealized gains on investments in earnings | 73,574 | 69,631 | 142,226 | 118,095 |
Income tax expense | (15,451) | (14,623) | (29,867) | (24,800) |
After-tax net realized and unrealized gains on investments in earnings | $ 58,123 | $ 55,008 | $ 112,359 | $ 93,295 |
Realized And Unrealized Inves_4
Realized And Unrealized Investment Gains (Losses) on Investments (Change in Unrealized Gains (Losses) of Available For Sales Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Realized and Unrealized Investment Gains Losses [Line Items] | ||||
Total change in unrealized investment gains (losses) | $ 147,071 | $ (40,488) | $ 316,331 | $ (201,336) |
Income tax (expense) benefit | (28,422) | 8,118 | (71,907) | 43,194 |
Noncontrolling interests | 30 | 37 | (18) | 26 |
Total change in unrealized gains | 118,679 | (32,333) | 244,406 | (158,116) |
Debt securities | ||||
Realized and Unrealized Investment Gains Losses [Line Items] | ||||
Total change in unrealized investment gains (losses) | 146,629 | (36,848) | 321,123 | (196,575) |
Previously impaired fixed maturity securities | ||||
Realized and Unrealized Investment Gains Losses [Line Items] | ||||
Total change in unrealized investment gains (losses) | 81 | (2) | 12 | 11 |
Investment funds | ||||
Realized and Unrealized Investment Gains Losses [Line Items] | ||||
Total change in unrealized investment gains (losses) | $ 361 | $ (3,638) | $ (4,804) | $ (4,772) |
Fixed Maturity Securities In _3
Fixed Maturity Securities In An Unrealized Loss Position (Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | $ 1,384,645 | $ 4,895,573 |
Gross Unrealized Losses, Less than 12 Months | 38,434 | 118,061 |
Fair Value, 12 Months or Greater | 1,672,556 | 2,965,937 |
Gross Unrealized Losses, 12 Months or Greater | 37,311 | 97,502 |
Fair Value, Total | 3,057,201 | 7,861,510 |
Gross Unrealized Losses, Total | 75,745 | 215,563 |
U.S. government and government agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 6,175 | 195,359 |
Gross Unrealized Losses, Less than 12 Months | 37 | 933 |
Fair Value, 12 Months or Greater | 92,729 | 130,815 |
Gross Unrealized Losses, 12 Months or Greater | 1,381 | 3,977 |
Fair Value, Total | 98,904 | 326,174 |
Gross Unrealized Losses, Total | 1,418 | 4,910 |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 64,499 | 701,700 |
Gross Unrealized Losses, Less than 12 Months | 838 | 6,874 |
Fair Value, 12 Months or Greater | 270,454 | 744,905 |
Gross Unrealized Losses, 12 Months or Greater | 3,083 | 17,738 |
Fair Value, Total | 334,953 | 1,446,605 |
Gross Unrealized Losses, Total | 3,921 | 24,612 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 23,049 | 334,063 |
Gross Unrealized Losses, Less than 12 Months | 112 | 2,911 |
Fair Value, 12 Months or Greater | 334,887 | 712,595 |
Gross Unrealized Losses, 12 Months or Greater | 5,584 | 21,022 |
Fair Value, Total | 357,936 | 1,046,658 |
Gross Unrealized Losses, Total | 5,696 | 23,933 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 1,010,706 | 1,687,665 |
Gross Unrealized Losses, Less than 12 Months | 17,410 | 28,965 |
Fair Value, 12 Months or Greater | 572,110 | 342,855 |
Gross Unrealized Losses, 12 Months or Greater | 10,297 | 4,722 |
Fair Value, Total | 1,582,816 | 2,030,520 |
Gross Unrealized Losses, Total | 27,707 | 33,687 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 139,627 | 1,730,513 |
Gross Unrealized Losses, Less than 12 Months | 1,095 | 54,181 |
Fair Value, 12 Months or Greater | 328,409 | 954,763 |
Gross Unrealized Losses, 12 Months or Greater | 12,549 | 49,129 |
Fair Value, Total | 468,036 | 2,685,276 |
Gross Unrealized Losses, Total | 13,644 | 103,310 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 140,589 | 246,273 |
Gross Unrealized Losses, Less than 12 Months | 18,942 | 24,197 |
Fair Value, 12 Months or Greater | 73,967 | 80,004 |
Gross Unrealized Losses, 12 Months or Greater | 4,417 | 914 |
Fair Value, Total | 214,556 | 326,277 |
Gross Unrealized Losses, Total | $ 23,359 | $ 25,111 |
Fixed Maturity Securities In _4
Fixed Maturity Securities In An Unrealized Loss Position (Non-Investment Grade Fixed Maturity Securities) (Details) $ in Thousands | Jun. 30, 2019USD ($)position | Dec. 31, 2018USD ($) |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | $ 357,936 | $ 1,046,658 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | 468,036 | 2,685,276 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | $ 1,582,816 | $ 2,030,520 |
Noninvestment Grade Investments at Loss Position | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Securities | position | 34 | |
Aggregate Fair Value | $ 198,201 | |
Gross Unrealized Loss | $ 27,404 | |
Noninvestment Grade Investments at Loss Position | Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Securities | position | 12 | |
Aggregate Fair Value | $ 114,714 | |
Gross Unrealized Loss | $ 22,719 | |
Noninvestment Grade Investments at Loss Position | Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Securities | position | 4 | |
Aggregate Fair Value | $ 7,170 | |
Gross Unrealized Loss | $ 63 | |
Noninvestment Grade Investments at Loss Position | Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Securities | position | 11 | |
Aggregate Fair Value | $ 65,905 | |
Gross Unrealized Loss | $ 3,278 | |
Noninvestment Grade Investments at Loss Position | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Securities | position | 7 | |
Aggregate Fair Value | $ 10,412 | |
Gross Unrealized Loss | $ 1,344 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured At Fair Value, On a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Total fixed maturity securities available for sale | $ 13,654,253 | $ 13,528,177 |
Equity securities | 416,588 | 279,006 |
Arbitrage trading account | 533,442 | 452,548 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Total fixed maturity securities available for sale | 13,654,253 | 13,528,177 |
Equity securities | 416,588 | 279,006 |
Arbitrage trading account | 533,442 | 452,548 |
Assets, fair value disclosure | 14,604,283 | 14,259,731 |
Liabilities: | ||
Securities sold but not yet purchased | 159,349 | 38,120 |
Fair Value, Measurements, Recurring | U.S. government and government agency | ||
Assets: | ||
Total fixed maturity securities available for sale | 777,070 | 702,240 |
Fair Value, Measurements, Recurring | State and municipal | ||
Assets: | ||
Total fixed maturity securities available for sale | 3,747,823 | 3,872,598 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Assets: | ||
Total fixed maturity securities available for sale | 1,575,866 | 1,594,546 |
Fair Value, Measurements, Recurring | Asset-backed | ||
Assets: | ||
Total fixed maturity securities available for sale | 2,701,785 | 2,438,747 |
Fair Value, Measurements, Recurring | Corporate | ||
Assets: | ||
Total fixed maturity securities available for sale | 4,036,285 | 4,111,311 |
Fair Value, Measurements, Recurring | Foreign government | ||
Assets: | ||
Total fixed maturity securities available for sale | 815,424 | 808,735 |
Fair Value, Measurements, Recurring | Common stocks | ||
Assets: | ||
Equity securities | 140,226 | 98,192 |
Fair Value, Measurements, Recurring | Preferred stocks | ||
Assets: | ||
Equity securities | 276,362 | 180,814 |
Level 1 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Equity securities | 131,242 | 89,596 |
Arbitrage trading account | 424,030 | 353,335 |
Assets, fair value disclosure | 555,272 | 442,931 |
Liabilities: | ||
Securities sold but not yet purchased | 144,420 | 37,327 |
Level 1 | Fair Value, Measurements, Recurring | U.S. government and government agency | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | State and municipal | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Asset-backed | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Corporate | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Foreign government | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Common stocks | ||
Assets: | ||
Equity securities | 131,242 | 89,596 |
Level 1 | Fair Value, Measurements, Recurring | Preferred stocks | ||
Assets: | ||
Equity securities | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Total fixed maturity securities available for sale | 13,654,228 | 13,528,078 |
Equity securities | 272,426 | 176,869 |
Arbitrage trading account | 83,206 | 81,905 |
Assets, fair value disclosure | 14,009,860 | 13,786,852 |
Liabilities: | ||
Securities sold but not yet purchased | 213 | 0 |
Level 2 | Fair Value, Measurements, Recurring | U.S. government and government agency | ||
Assets: | ||
Total fixed maturity securities available for sale | 777,070 | 702,240 |
Level 2 | Fair Value, Measurements, Recurring | State and municipal | ||
Assets: | ||
Total fixed maturity securities available for sale | 3,747,823 | 3,872,598 |
Level 2 | Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Assets: | ||
Total fixed maturity securities available for sale | 1,575,866 | 1,594,546 |
Level 2 | Fair Value, Measurements, Recurring | Asset-backed | ||
Assets: | ||
Total fixed maturity securities available for sale | 2,701,760 | 2,438,648 |
Level 2 | Fair Value, Measurements, Recurring | Corporate | ||
Assets: | ||
Total fixed maturity securities available for sale | 4,036,285 | 4,111,311 |
Level 2 | Fair Value, Measurements, Recurring | Foreign government | ||
Assets: | ||
Total fixed maturity securities available for sale | 815,424 | 808,735 |
Level 2 | Fair Value, Measurements, Recurring | Common stocks | ||
Assets: | ||
Equity securities | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | Preferred stocks | ||
Assets: | ||
Equity securities | 272,426 | 176,869 |
Level 3 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Total fixed maturity securities available for sale | 25 | 99 |
Equity securities | 12,920 | 12,541 |
Arbitrage trading account | 26,206 | 17,308 |
Assets, fair value disclosure | 39,151 | 29,948 |
Liabilities: | ||
Securities sold but not yet purchased | 14,716 | 793 |
Level 3 | Fair Value, Measurements, Recurring | U.S. government and government agency | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | State and municipal | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Asset-backed | ||
Assets: | ||
Total fixed maturity securities available for sale | 25 | 99 |
Level 3 | Fair Value, Measurements, Recurring | Corporate | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Foreign government | ||
Assets: | ||
Total fixed maturity securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Common stocks | ||
Assets: | ||
Equity securities | 8,984 | 8,596 |
Level 3 | Fair Value, Measurements, Recurring | Preferred stocks | ||
Assets: | ||
Equity securities | $ 3,936 | $ 3,945 |
Fair Value Measurements (Summar
Fair Value Measurements (Summarize Changes in Level 3 Assets) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Assets, impairments | $ 0 | $ 0 | |
Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Assets, beginning balance | 29,948,000 | 20,385,000 | $ 20,385,000 |
Assets, earnings | 790,000 | (456,000) | 0 |
Assets, other comprehensive income | 46,000 | 46,000 | |
Assets, purchases | 14,672,000 | 11,523,000 | |
Assets, (sales) | (21,194,000) | (7,353,000) | |
Assets. transfers out | 14,889,000 | 5,803,000 | |
Assets, ending balance | 39,151,000 | 29,948,000 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Liabilities, beginning balance | 793,000 | 0 | 0 |
Liabilities, earnings | 9,320,000 | (67,000) | |
Liabilities, other comprehensive income | 0 | 0 | |
Liabilities, impairments | 0 | ||
Liabilities, purchases | 7,609,000 | 860,000 | |
Liabilities, (sales) | (3,006,000) | 0 | |
Liabilities, maturities | 0 | 0 | |
Liabilities, ending balance | 14,716,000 | 793,000 | |
Level 3 | Debt securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Assets, beginning balance | 99,000 | 172,000 | 172,000 |
Assets, earnings | 2,000 | (2,000) | |
Assets, other comprehensive income | 46,000 | 46,000 | |
Assets, impairments | 0 | 0 | |
Assets, purchases | 0 | 0 | |
Assets, (sales) | (122,000) | (117,000) | |
Assets. transfers out | 0 | 0 | |
Assets, ending balance | 25,000 | 99,000 | |
Level 3 | Asset-backed | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Assets, beginning balance | 99,000 | 172,000 | 172,000 |
Assets, earnings | 2,000 | (2,000) | |
Assets, other comprehensive income | 46,000 | 46,000 | |
Assets, impairments | 0 | 0 | |
Assets, purchases | 0 | 0 | |
Assets, (sales) | (122,000) | (117,000) | |
Assets, maturities | 0 | 0 | |
Assets. transfers out | 0 | 0 | |
Assets, ending balance | 25,000 | 99,000 | |
Level 3 | Equity securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Assets, beginning balance | 12,541,000 | 20,213,000 | 20,213,000 |
Assets, earnings | 379,000 | (448,000) | |
Assets, other comprehensive income | 0 | 0 | |
Assets, impairments | 0 | 0 | |
Assets, purchases | 0 | 0 | |
Assets, (sales) | 0 | (7,225,000) | |
Assets, maturities | 0 | ||
Assets. transfers out | 0 | 1,000 | |
Assets, ending balance | 12,920,000 | 12,541,000 | |
Level 3 | Common stock | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Assets, beginning balance | 8,596,000 | 9,370,000 | 9,370,000 |
Assets, earnings | 388,000 | (548,000) | |
Assets, other comprehensive income | 0 | 0 | |
Assets, impairments | 0 | 0 | |
Assets, purchases | 0 | 0 | |
Assets, (sales) | 0 | (227,000) | |
Assets. transfers out | 0 | 1,000 | |
Assets, ending balance | 8,984,000 | 8,596,000 | |
Level 3 | Preferred stocks | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Assets, beginning balance | 3,945,000 | 10,843,000 | 10,843,000 |
Assets, earnings | (9,000) | 100,000 | |
Assets, other comprehensive income | 0 | 0 | |
Assets, impairments | 0 | 0 | |
Assets, purchases | 0 | ||
Assets, (sales) | 0 | (6,998,000) | |
Assets. transfers out | 0 | 0 | |
Assets, ending balance | 3,936,000 | 3,945,000 | |
Level 3 | Arbitrage trading account | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Assets, beginning balance | 17,308,000 | 0 | 0 |
Assets, earnings | 409,000 | (6,000) | |
Assets, other comprehensive income | 0 | 0 | |
Assets, impairments | 0 | 0 | |
Assets, purchases | 14,672,000 | 11,523,000 | |
Assets, (sales) | (21,072,000) | (11,000) | |
Assets. transfers out | 14,889,000 | $ 5,802,000 | |
Assets, ending balance | 26,206,000 | 17,308,000 | |
Level 3 | Securities Sold, Not yet Purchased [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Assets. transfers out | $ 0 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Liabilities, transfers out | $ 0 |
Reserves for Loss and Loss Ex_3
Reserves for Loss and Loss Expenses (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Net reserves at beginning of period | $ 10,248,883 | $ 10,056,914 | |||
Net provision for losses and loss expenses: | |||||
Claims occurring during the current year | 1,980,138 | 1,916,140 | |||
Decrease in estimates for claims occurring in prior years | 16,764 | (246) | |||
Loss reserve discount accretion | 20,577 | 20,962 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 2,017,479 | 1,936,856 | |||
Net payments for claims: | |||||
Current year | 548,589 | 316,567 | |||
Prior years | 1,200,906 | 1,527,522 | |||
Total | 1,749,495 | 1,844,089 | |||
Foreign currency translation | (2,228) | (72,351) | |||
Net reserves at end of period | $ 10,248,883 | $ 10,056,914 | $ 10,514,639 | $ 10,248,883 | $ 10,077,330 |
Ceded reserves at end of period | 1,805,639 | 1,659,245 | |||
Gross reserves at end of period | $ 12,320,278 | $ 11,966,448 | $ 11,736,575 |
Reserves for Loss and Loss Ex_4
Reserves for Loss and Loss Expenses (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Net of loss reserve discounts | $ 11 | $ 13 |
Increase (decrease) in estimates for claims | 9 | (6) |
Adjustment expense | 14 | 19 |
Insurance | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Adjustment expense | 13.6 | 19.3 |
Favorable reserve development net of premium offsets | 17.2 | 18.6 |
Reinsurance & Monoline Excess | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Unfavorable reserve development net of premium offsets | $ 3.6 | $ 0.7 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Arbitrage trading account | $ 533,442 | $ 452,548 |
Loans receivable | 96,905 | 97,073 |
Carrying Value | ||
Assets: | ||
Fixed maturity securities | 13,732,800 | 13,606,812 |
Equity securities | 416,588 | 279,006 |
Arbitrage trading account | 533,442 | 452,548 |
Loans receivable | 94,697 | 94,813 |
Cash and cash equivalents | 1,258,174 | 817,602 |
Trading account receivables from brokers and clearing organizations | 402,361 | 347,228 |
Liabilities: | ||
Due to broker | 39,230 | 20,144 |
Trading account securities sold but not yet purchased | 159,349 | 38,120 |
Subordinated debentures | 907,866 | 907,491 |
Senior notes and other debt | 1,873,799 | 1,882,028 |
Fair Value | ||
Assets: | ||
Fixed maturity securities | 13,746,972 | 13,619,620 |
Equity securities | 416,588 | 279,006 |
Arbitrage trading account | 533,442 | 452,548 |
Loans receivable | 96,905 | 97,073 |
Cash and cash equivalents | 1,258,174 | 817,602 |
Trading account receivables from brokers and clearing organizations | 402,361 | 347,228 |
Liabilities: | ||
Due to broker | 39,230 | 20,144 |
Trading account securities sold but not yet purchased | 159,349 | 38,120 |
Subordinated debentures | 969,172 | 840,002 |
Senior notes and other debt | $ 2,019,430 | $ 1,968,996 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Written premiums: | |||||
Written premiums, direct | $ 1,883,032 | $ 1,785,266 | $ 3,712,847 | $ 3,572,501 | |
Written premiums, assumed | 206,828 | 162,808 | 423,243 | 354,995 | |
Written premiums, ceded | (346,396) | (323,970) | (683,025) | (638,054) | |
Total net premiums written | 1,743,464 | 1,624,104 | 3,453,065 | 3,289,442 | |
Earned premiums: | |||||
Earned premiums, direct | 1,773,437 | 1,705,277 | 3,497,047 | 3,379,827 | |
Earned premiums, assumed | 198,661 | 180,509 | 386,852 | 369,375 | |
Earned premiums, ceded | (325,257) | (304,733) | (644,202) | (600,741) | |
Net premiums earned | 1,646,841 | 1,581,053 | 3,239,697 | 3,148,461 | |
Ceded losses and loss expenses incurred | 239,267 | 161,073 | 412,314 | 400,068 | |
Ceded commissions earned | 73,092 | $ 65,922 | 144,109 | $ 132,278 | |
Uncollectible reinsurance | $ 1,000 | $ 1,000 | $ 1,000 |
Restricted Stock Units (Summary
Restricted Stock Units (Summary of Restricted Stock Units Issued) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item] | ||
Share based compensation expense | $ 25,000 | $ 18,000 |
Restricted stock | ||
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item] | ||
Restricted stock units (in units) | 5,141 | 19,538 |
Fair Value | $ 308 | $ 963 |
Minimum | Restricted stock | ||
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item] | ||
Award vesting period | 3 years | |
Maximum | Restricted stock | ||
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item] | ||
Award vesting period | 5 years |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Lease cost | $ 10,680 | $ 22,235 |
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows | 11,132 | 22,789 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 2,918 | $ 7,884 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease, right-of-use asset | $ 179,984 |
Operating lease, liability | $ 209,107 |
Weighted-average remaining lease term | 6 years 7 months 6 days |
Weighted-average discount rate | 5.97% |
Leases (Maturities of Operating
Leases (Maturities of Operating Lease Liabilities) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 24,117 |
2020 | 44,461 |
2021 | 40,681 |
2022 | 35,121 |
2023 | 31,556 |
Thereafter | 77,578 |
Total undiscounted future minimum lease payments | 253,514 |
Less: Discount impact | (44,407) |
Total lease liability | $ 209,107 |
Business Segments (Financial In
Business Segments (Financial Information of Company Operating Segments) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 2 | |||
Earned Premiums (1) | $ 1,646,841 | $ 1,581,053 | $ 3,239,697 | $ 3,148,461 |
Investment Income | 188,333 | 153,777 | 346,587 | 328,295 |
Other | 188,210 | 176,086 | 374,122 | 325,407 |
Total revenues | 2,023,384 | 1,910,916 | 3,960,406 | 3,802,163 |
Pre-Tax Income (Loss) | 273,736 | 229,242 | 503,175 | 440,232 |
Net Income (Loss) to Common Stockholders | 216,709 | 180,075 | 397,431 | 346,472 |
Net investment gains | 73,574 | 69,631 | 142,226 | 118,095 |
Net investment gains, net of tax | 58,123 | 55,008 | 112,359 | 93,295 |
Corporate, other and eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Earned Premiums (1) | 0 | 0 | 0 | 0 |
Investment Income | 11,481 | 17,321 | 30,120 | 31,327 |
Other | 100,949 | 87,748 | 204,965 | 169,637 |
Total revenues | 112,430 | 105,069 | 235,085 | 200,964 |
Pre-Tax Income (Loss) | (78,344) | (59,744) | (146,928) | (140,838) |
Net Income (Loss) to Common Stockholders | (62,519) | (47,917) | (117,551) | (113,087) |
Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Earned Premiums (1) | 1,475,184 | 1,415,579 | 2,902,218 | 2,806,868 |
Insurance | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Earned Premiums (1) | 1,475,184 | 1,415,579 | 2,902,218 | 2,806,868 |
Investment Income | 132,403 | 94,542 | 232,444 | 208,040 |
Other | 13,687 | 18,707 | 26,931 | 37,675 |
Total revenues | 1,621,274 | 1,528,828 | 3,161,593 | 3,052,583 |
Pre-Tax Income (Loss) | 225,871 | 163,181 | 410,387 | 362,109 |
Net Income (Loss) to Common Stockholders | 179,241 | 128,693 | 325,234 | 286,426 |
Reinsurance & Monoline Excess | ||||
Segment Reporting Information [Line Items] | ||||
Earned Premiums (1) | 171,657 | 165,474 | 337,479 | 341,593 |
Reinsurance & Monoline Excess | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Earned Premiums (1) | 171,657 | 165,474 | 337,479 | 341,593 |
Investment Income | 44,449 | 41,914 | 84,023 | 88,928 |
Other | 0 | 0 | 0 | 0 |
Total revenues | 216,106 | 207,388 | 421,502 | 430,521 |
Pre-Tax Income (Loss) | 52,635 | 56,174 | 97,490 | 100,866 |
Net Income (Loss) to Common Stockholders | 41,864 | 44,291 | 77,389 | 79,838 |
Re-insurance - International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 62,000 | 55,000 | 121,000 | 112,000 |
Net investment gains | ||||
Segment Reporting Information [Line Items] | ||||
Earned Premiums (1) | 0 | 0 | 0 | 0 |
Investment Income | 0 | 0 | 0 | 0 |
Insurance-International Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 179,000 | $ 176,000 | $ 349,000 | $ 359,000 |
Business Segments (Identifiable
Business Segments (Identifiable Assets by Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated Assets | $ 26,487,903 | $ 24,895,977 |
Operating Segments | Insurance | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated Assets | 19,444,475 | 18,214,293 |
Operating Segments | Reinsurance & Monoline Excess | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated Assets | 4,573,446 | 4,371,151 |
Corporate, other and eliminations | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated Assets | $ 2,469,982 | $ 2,310,533 |
Business Segments (Net Premiums
Business Segments (Net Premiums Earned By Major Line of Business) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from External Customer [Line Items] | ||||
Net premiums earned | $ 1,646,841 | $ 1,581,053 | $ 3,239,697 | $ 3,148,461 |
Insurance | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 1,475,184 | 1,415,579 | 2,902,218 | 2,806,868 |
Insurance | Other liability | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 505,621 | 474,721 | 996,282 | 938,889 |
Insurance | Workers’ compensation | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 330,510 | 336,996 | 657,186 | 661,974 |
Insurance | Property reinsurance | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 305,852 | 288,320 | 594,943 | 583,347 |
Insurance | Commercial automobile | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 188,278 | 175,812 | 369,203 | 351,010 |
Insurance | Professional liability | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 144,923 | 139,730 | 284,604 | 271,648 |
Reinsurance & Monoline Excess | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 171,657 | 165,474 | 337,479 | 341,593 |
Reinsurance & Monoline Excess | Property reinsurance | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 37,148 | 38,204 | 73,159 | 82,705 |
Reinsurance & Monoline Excess | Casualty reinsurance | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | 95,109 | 86,841 | 185,939 | 177,411 |
Reinsurance & Monoline Excess | Monoline Excess | ||||
Revenue from External Customer [Line Items] | ||||
Net premiums earned | $ 39,400 | $ 40,429 | $ 78,381 | $ 81,477 |