Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 03, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 001-33289 | |
Entity Registrant Name | Enstar Group LTD | |
Entity Incorporation, State or Country Code | D0 | |
Entity Address, Address Line One | Windsor Place | |
Entity Address, Address Line Two | 3rd Floor | |
Entity Address, Address Line Three | 22 Queen Street | |
Entity Address, City or Town | Hamilton | |
Entity Address, Postal Zip Code | HM JX | |
Entity Address, Country | BM | |
City Area Code | 441 | |
Local Phone Number | 292-3645 | |
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 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity Central Index Key | 0001363829 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Ordinary Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Ordinary shares, par value $1.00 per share | |
Trading Symbol | ESGR | |
Security Exchange Name | NASDAQ | |
Series D Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/1,000th Interest in a 7.00% | |
Trading Symbol | ESGRP | |
Security Exchange Name | NASDAQ | |
Series E Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/1,000th Interest in a 7.00% | |
Trading Symbol | ESGRO | |
Security Exchange Name | NASDAQ | |
Voting Ordinary Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 16,782,445 | |
Nonvoting Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,597,712 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Available-for-sale, at fair value | $ 5,576,511 | $ 3,658,895 |
Funds held - directly managed | 1,028,503 | 1,074,890 |
Equities, at fair value | 1,158,219 | 846,795 |
Other investments, at fair value | 1,814,593 | 4,244,034 |
Equity method investments | 936,430 | 832,295 |
Total investments (Note 4 and Note 10) | 14,622,446 | 15,256,930 |
Cash and cash equivalents | 769,359 | 901,152 |
Restricted cash and cash equivalents | 356,899 | 471,964 |
Premiums receivable | 379,981 | 405,793 |
Reinsurance balances recoverable on paid and unpaid losses (net of allowance: 2021 — $140,488; 2020 — $137,122) (Note 6) | 1,484,384 | 1,568,333 |
Reinsurance balances recoverable on paid and unpaid losses, at fair value (Note 6 and Note 10) | 492,343 | 520,830 |
Insurance balances recoverable (net of allowance: 2021 — $5,822; 2020 — $4,824) (Note 9) | 245,979 | 249,652 |
Funds held by reinsured companies | 2,201,958 | 635,819 |
Variable interest entity assets of the InRe Fund (Note 11) | ||
TOTAL ASSETS | 24,621,331 | 21,647,284 |
Cash and restricted cash | 2,128,795 | 1,373,116 |
Total investments | 14,622,446 | 15,256,930 |
Other assets | 1,154,460 | 925,533 |
Other assets | 1,154,460 | 925,533 |
Assets held-for-sale (Note 3) | 0 | 711,278 |
TOTAL ASSETS | 24,621,331 | 21,647,284 |
LIABILITIES | ||
Losses and loss adjustment expenses (Note 8) | 10,803,753 | 8,140,362 |
Losses and loss adjustment expenses, at fair value (Note 8 and Note 10) | 2,234,105 | 2,452,920 |
Defendant asbestos and environmental liabilities (Note 9) | 677,919 | 706,329 |
Insurance and reinsurance balances payable | 584,084 | 494,412 |
Debt obligations (Note 14) | 1,364,212 | 1,373,259 |
Other liabilities | 886,056 | 942,905 |
Liabilities held-for-sale (Note 3) | 0 | 483,657 |
TOTAL LIABILITIES | 17,243,939 | 14,593,844 |
COMMITMENTS AND CONTINGENCIES (Note 21) | ||
REDEEMABLE NONCONTROLLING INTEREST (Note 15) | 177,449 | 365,436 |
SHAREHOLDERS’ EQUITY (Note 16) | ||
Treasury shares, at cost (Series C Preferred shares 2021 and 2020: 388,571) | (421,559) | (421,559) |
Joint Share Ownership Plan (voting ordinary shares, held in trust 2021 and 2020: 565,630) | (566) | (566) |
Additional paid-in capital | 1,835,231 | 1,836,074 |
Accumulated other comprehensive income | 33,077 | 80,659 |
Retained earnings | 5,208,565 | 4,647,312 |
Total Enstar Shareholders’ Equity | 7,187,308 | 6,674,395 |
Noncontrolling interest (Note 15) | 12,635 | 13,609 |
TOTAL SHAREHOLDERS’ EQUITY | 7,199,943 | 6,688,004 |
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY | 24,621,331 | 21,647,284 |
InRe Fund | ||
ASSETS | ||
Trading, at fair value | 198,793 | |
Equities, at fair value | 1,135,334 | |
Total investments (Note 4 and Note 10) | 1,393,134 | 0 |
Cash and cash equivalents | 122,701 | |
Restricted cash and cash equivalents | 879,836 | |
Variable interest entity assets of the InRe Fund (Note 11) | ||
TOTAL ASSETS | 2,913,522 | 0 |
Cash and restricted cash | 1,002,537 | 0 |
Total investments | 1,393,134 | 0 |
Other assets | 517,851 | 0 |
Other assets | 517,851 | 0 |
TOTAL ASSETS | 2,913,522 | 0 |
LIABILITIES | ||
Other liabilities | 21,500 | |
TOTAL LIABILITIES | 693,810 | 0 |
SHAREHOLDERS’ EQUITY (Note 16) | ||
Total Enstar Shareholders’ Equity | 2,200,000 | |
Voting Ordinary shares (issued and outstanding 2021: 18,571,161; 2020: 18,575,550) | ||
SHAREHOLDERS’ EQUITY (Note 16) | ||
Ordinary shares | 18,571 | 18,576 |
Non-voting convertible ordinary Series C Shares (issued and outstanding 2021: 2,689,262; 2020: 2,599,672) | ||
SHAREHOLDERS’ EQUITY (Note 16) | ||
Ordinary shares | 2,690 | 2,600 |
Non-voting convertible ordinary Series E Shares (issued and outstanding 2021 and 2020: 910,010) | ||
SHAREHOLDERS’ EQUITY (Note 16) | ||
Ordinary shares | 910 | 910 |
Series C Preferred Shares (issued and held in treasury 2021 and 2020: 388,571) | ||
SHAREHOLDERS’ EQUITY (Note 16) | ||
Preferred Shares | 389 | 389 |
Series D Preferred Shares (issued and outstanding 2021 and 2020: 16,000) | ||
SHAREHOLDERS’ EQUITY (Note 16) | ||
Preferred Shares | 400,000 | 400,000 |
Series E Preferred Shares (issued and outstanding 2021 and 2020: 4,400) | ||
SHAREHOLDERS’ EQUITY (Note 16) | ||
Preferred Shares | 110,000 | 110,000 |
Short-term investments, AFS, at fair value | ||
ASSETS | ||
Trading, at fair value | 19,788 | 5,129 |
Available-for-sale, at fair value | 110,473 | 263,795 |
Fixed maturity investments | ||
ASSETS | ||
Trading, at fair value | 4,088,402 | 4,594,892 |
Available-for-sale, at fair value | 5,466,038 | $ 3,395,100 |
Fixed maturity investments | InRe Fund | ||
ASSETS | ||
Trading, at fair value | $ 198,793 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Investments, available-for-sale, at fair value, amortized cost | $ 5,554,105 | $ 3,576,641 |
Investments, allowance for credit losses | 7,386 | 322 |
Allowance for estimated uncollectible reinsurance | 140,488 | 137,122 |
Insurance balance recoverable, allowance for credit loss | $ 5,822 | $ 4,824 |
SHAREHOLDERS’ EQUITY | ||
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Ordinary shares issued (in shares) | 22,170,433 | 22,085,232 |
Ordinary shares outstanding (in shares) | 22,170,433 | 22,085,232 |
Treasury shares, preferred at cost (in shares) | 388,571 | 388,571 |
Treasury shares, voting ordinary shares, held in trust (in shares) | 565,630 | 565,630 |
Voting Ordinary Shares | ||
SHAREHOLDERS’ EQUITY | ||
Ordinary shares issued (in shares) | 18,571,161 | 18,575,550 |
Ordinary shares outstanding (in shares) | 18,571,161 | 18,575,550 |
Series C Non-Voting Convertible Ordinary Shares | ||
SHAREHOLDERS’ EQUITY | ||
Ordinary shares issued (in shares) | 2,689,262 | 2,599,672 |
Ordinary shares outstanding (in shares) | 2,689,262 | 2,599,672 |
Series E Non-Voting Convertible Ordinary Shares | ||
SHAREHOLDERS’ EQUITY | ||
Ordinary shares issued (in shares) | 910,010 | 910,010 |
Ordinary shares outstanding (in shares) | 910,010 | 910,010 |
Series C Preferred Shares | ||
SHAREHOLDERS’ EQUITY | ||
Preferred shares issued (in shares) | 388,571 | 388,571 |
Treasury shares, preferred at cost (in shares) | 388,571 | 388,571 |
Series D Preferred Stock | ||
SHAREHOLDERS’ EQUITY | ||
Preferred shares issued (in shares) | 16,000 | 16,000 |
Preferred shares outstanding (in shares) | 16,000 | 16,000 |
Series E Preferred Stock | ||
SHAREHOLDERS’ EQUITY | ||
Preferred shares issued (in shares) | 4,400 | 4,400 |
Preferred shares outstanding (in shares) | 4,400 | 4,400 |
Short-term investments, AFS, at fair value | ||
ASSETS | ||
Investments, available-for-sale, at fair value, amortized cost | $ 110,452 | $ 263,750 |
Investments, allowance for credit losses | 0 | 0 |
Fixed maturity investments | ||
ASSETS | ||
Investments, available-for-sale, at fair value, amortized cost | 5,443,653 | 3,312,891 |
Investments, allowance for credit losses | $ 7,386 | $ 322 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
INCOME | |||||
Net premiums earned | $ 59,644 | $ 142,871 | $ 152,520 | $ 302,222 | |
Fees and commission income | 8,274 | 10,010 | 17,872 | 17,538 | |
Net investment income | [1] | 76,147 | 94,443 | 138,236 | 169,157 |
Net realized and unrealized gains | [1] | 405,220 | 967,608 | 384,432 | 338,547 |
Other income (expense) | (3,359) | (1,087) | (2,808) | 19,357 | |
Net gain on sale of subsidiaries | 0 | 0 | 14,894 | 0 | |
Total income | 545,926 | 1,213,845 | 705,146 | 846,821 | |
EXPENSES | |||||
Net incurred losses and loss adjustment expenses | 39,304 | 186,692 | (16,203) | 229,992 | |
Acquisition costs | 4,956 | 49,067 | 38,970 | 95,110 | |
General and administrative expenses | 92,717 | 144,830 | 175,717 | 243,258 | |
Interest expense | 16,301 | 14,018 | 32,480 | 27,433 | |
Net foreign exchange (gains) losses | (9,139) | 5,158 | (6,505) | (6,781) | |
Total expenses | 144,139 | 399,765 | 224,459 | 589,012 | |
EARNINGS BEFORE INCOME TAXES | 401,787 | 814,080 | 480,687 | 257,809 | |
Income tax expense | (9,422) | (16,652) | (3,440) | (11,380) | |
Earnings (loss) from equity method investments | (3,059) | (8,790) | 114,972 | 3,660 | |
NET EARNINGS FROM CONTINUING OPERATIONS | 389,306 | 788,638 | 592,219 | 250,089 | |
Net loss from discontinued operations, net of income taxes | 0 | (1,152) | 0 | (3,221) | |
NET EARNINGS | 389,306 | 787,486 | 592,219 | 246,868 | |
Net (earnings) loss attributable to noncontrolling interest | (3,055) | 19,992 | (13,846) | 52,714 | |
NET EARNINGS ATTRIBUTABLE TO ENSTAR | 386,251 | 807,478 | 578,373 | 299,582 | |
Dividends on preferred shares | (8,925) | (8,925) | (17,850) | (17,850) | |
NET EARNINGS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ 377,326 | $ 798,553 | $ 560,523 | $ 281,732 | |
Basic: | |||||
Net earnings from continuing operations (in dollars per share) | $ 17.44 | $ 37.06 | $ 25.95 | $ 13.16 | |
Net loss from discontinued operations (in dollars per share) | 0 | (0.03) | 0 | (0.09) | |
Net earnings per ordinary share (in dollars per share) | 17.44 | 37.03 | 25.95 | 13.07 | |
Diluted: | |||||
Net earnings from continuing operations (in dollars per share) | 17.28 | 36.68 | 25.60 | 13.02 | |
Net loss from discontinued operations (in dollars per share) | 0 | (0.03) | 0 | (0.09) | |
Net earnings per ordinary share (in dollars per share) | $ 17.28 | $ 36.65 | $ 25.60 | $ 12.93 | |
Weighted average ordinary shares outstanding: | |||||
Basic (in shares) | 21,631,749 | 21,565,240 | 21,597,236 | 21,557,542 | |
Diluted (in shares) | 21,832,218 | 21,789,242 | 21,892,744 | 21,788,331 | |
[1] | Includes amounts attributed to the InRe Fund, refer to Note 11 - "Variable Interest Entities" for additional information. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
NET EARNINGS | $ 389,306 | $ 787,486 | $ 592,219 | $ 246,868 |
Other comprehensive income (loss), net of income taxes: | ||||
Unrealized gains (losses) on fixed income available-for-sale investments arising during the period | 57,020 | 112,506 | (54,254) | 53,771 |
Reclassification adjustment for change in allowance for credit losses recognized in net earnings | (5,094) | (10,762) | 6,931 | 2,450 |
Reclassification adjustment for net realized gains included in net earnings | (529) | (4,222) | (1,123) | (4,010) |
Reclassification to earnings on disposal of subsidiary | 0 | 0 | 475 | 0 |
Unrealized gains (losses) arising during the period, net of reclassification adjustments | 51,397 | 97,522 | (47,971) | 52,211 |
Cumulative currency translation adjustment | (399) | (1,205) | 1,019 | (1,891) |
Total other comprehensive income (loss) | 50,998 | 96,317 | (46,952) | 50,320 |
Comprehensive income | 440,304 | 883,803 | 545,267 | 297,188 |
Comprehensive (income) loss attributable to noncontrolling interest | (3,260) | 9,616 | (14,476) | 46,508 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSTAR | $ 437,044 | $ 893,419 | $ 530,791 | $ 343,696 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Ordinary SharesVoting Ordinary Shares | Ordinary SharesSeries C Non-Voting Convertible Ordinary Shares | Ordinary SharesSeries E Non-Voting Convertible Ordinary Shares | Preferred StockSeries C Preferred Shares | Preferred StockSeries D Preferred Stock | Preferred StockSeries E Preferred Stock | Treasury Shares (Series C Preferred Shares) | Joint Share Ownership Plan — Voting Ordinary Shares, Held in Trust | Additional Paid-in Capital | Additional Paid-in CapitalVoting Ordinary Shares | Accumulated Other Comprehensive Income (Loss) | Cumulative currency translation adjustment | Defined benefit pension liability | Unrealized gains (losses) on available-for-sale investments | Retained Earnings | Retained EarningsCumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance | Noncontrolling Interest (excludes Redeemable Noncontrolling Interest) |
Balance, beginning of period at Dec. 31, 2019 | $ 18,002 | $ 2,600 | $ 910 | $ 389 | $ 400,000 | $ 110,000 | $ (421,559) | $ 0 | $ 1,836,778 | $ 7,171 | $ 8,548 | $ (945) | $ (432) | $ 2,887,892 | $ (6,148) | $ 14,168 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Issue of shares | 726 | 0 | ||||||||||||||||
Shares repurchased | (93) | (12,433) | $ (1,360) | |||||||||||||||
Exercise of warrants | 0 | 0 | ||||||||||||||||
Amortization of share-based compensation | 12,130 | |||||||||||||||||
Change in other comprehensive income (loss) | $ 50,320 | (1,724) | 45,838 | |||||||||||||||
Net earnings | 281,732 | 246,868 | ||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | 52,714 | 52,714 | (615) | |||||||||||||||
Dividend on preferred shares | (17,850) | |||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | 26,628 | |||||||||||||||||
Dividends paid | 0 | |||||||||||||||||
Balance, end of period at Jun. 30, 2020 | 5,200,466 | 18,635 | 2,600 | 910 | 389 | 400,000 | 110,000 | (421,559) | (566) | 1,835,115 | 51,285 | 6,824 | (945) | 45,406 | 3,190,104 | 13,553 | ||
Balance, beginning of period at Mar. 31, 2020 | 18,610 | 2,600 | 910 | 389 | 400,000 | 110,000 | (421,559) | (566) | 1,825,798 | (34,656) | 7,862 | (945) | (41,573) | 2,375,073 | 0 | 13,405 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Issue of shares | 25 | (566) | ||||||||||||||||
Shares repurchased | 0 | 0 | (109) | |||||||||||||||
Exercise of warrants | 0 | 0 | ||||||||||||||||
Amortization of share-based compensation | 9,426 | |||||||||||||||||
Change in other comprehensive income (loss) | 96,317 | (1,038) | 86,979 | |||||||||||||||
Net earnings | 798,553 | 787,486 | ||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | 19,992 | 19,992 | 148 | |||||||||||||||
Dividend on preferred shares | (8,925) | |||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | 16,478 | |||||||||||||||||
Dividends paid | 0 | |||||||||||||||||
Balance, end of period at Jun. 30, 2020 | 5,200,466 | 18,635 | 2,600 | 910 | 389 | 400,000 | 110,000 | (421,559) | (566) | 1,835,115 | 51,285 | 6,824 | (945) | 45,406 | 3,190,104 | 13,553 | ||
Balance, beginning of period at Dec. 31, 2020 | 6,688,004 | 18,576 | 2,600 | 910 | 389 | 400,000 | 110,000 | (421,559) | (566) | 1,836,074 | 80,659 | 7,876 | 207 | 72,576 | 4,647,312 | 0 | 13,609 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Issue of shares | 43 | 0 | ||||||||||||||||
Shares repurchased | (48) | (11,385) | (2,563) | |||||||||||||||
Exercise of warrants | 90 | (90) | ||||||||||||||||
Amortization of share-based compensation | 13,195 | |||||||||||||||||
Change in other comprehensive income (loss) | (46,952) | 178 | (47,760) | |||||||||||||||
Net earnings | 560,523 | 592,219 | ||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | (13,846) | (13,846) | (340) | |||||||||||||||
Dividend on preferred shares | (17,850) | |||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | 730 | |||||||||||||||||
Dividends paid | (634) | |||||||||||||||||
Balance, end of period at Jun. 30, 2021 | 7,199,943 | 18,571 | 2,690 | 910 | 389 | 400,000 | 110,000 | (421,559) | (566) | 1,835,231 | 33,077 | 8,054 | 207 | 24,816 | 5,208,565 | 12,635 | ||
Balance, beginning of period at Mar. 31, 2021 | 18,596 | 2,690 | 910 | 389 | 400,000 | 110,000 | (421,559) | (566) | 1,836,792 | (17,715) | 8,619 | 207 | (26,541) | 4,831,239 | $ 0 | 12,655 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Issue of shares | 5 | 0 | ||||||||||||||||
Shares repurchased | (30) | (7,178) | $ (311) | |||||||||||||||
Exercise of warrants | 0 | 0 | ||||||||||||||||
Amortization of share-based compensation | 5,928 | |||||||||||||||||
Change in other comprehensive income (loss) | 50,998 | (565) | 51,357 | |||||||||||||||
Net earnings | 377,326 | 389,306 | ||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | (3,055) | (3,055) | 614 | |||||||||||||||
Dividend on preferred shares | (8,925) | |||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | 0 | |||||||||||||||||
Dividends paid | (634) | |||||||||||||||||
Balance, end of period at Jun. 30, 2021 | $ 7,199,943 | $ 18,571 | $ 2,690 | $ 910 | $ 389 | $ 400,000 | $ 110,000 | $ (421,559) | $ (566) | $ 1,835,231 | $ 33,077 | $ 8,054 | $ 207 | $ 24,816 | $ 5,208,565 | $ 12,635 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 51 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
OPERATING ACTIVITIES: | |||||
NET EARNINGS | $ 389,306 | $ 787,486 | $ 592,219 | $ 246,868 | |
Net loss from discontinued operations, net of income taxes | 0 | 1,152 | 0 | 3,221 | |
Adjustments to reconcile net earnings to cash flows provided by operating activities: | |||||
Realized gains on sales of investments | (346,341) | (61,406) | |||
Unrealized gains on investments | (38,091) | (277,141) | |||
Net gain on sales of subsidiaries | (14,894) | 0 | |||
Depreciation and other amortization | 38,005 | 30,006 | |||
Earnings from equity method investments | 3,059 | 8,790 | (114,972) | (3,660) | |
Sales and maturities of trading securities | 3,267,170 | 2,165,843 | |||
Purchases of trading securities | (2,031,855) | (1,175,992) | |||
Payments to cover securities sold short | (685,140) | 0 | |||
Proceeds from securities sold short | 244,829 | 0 | |||
Net payments for derivative contracts | (77,773) | 0 | |||
Other non-cash items | 10,274 | 11,082 | |||
Changes in: | |||||
Reinsurance balances recoverable on paid and unpaid losses | 111,995 | 84,827 | |||
Funds held by reinsured companies | (1,566,139) | (990,864) | |||
Losses and loss adjustment expenses | 2,447,066 | 741,100 | |||
Defendant asbestos and environmental liabilities | (28,410) | (39,623) | |||
Insurance and reinsurance balances payable | 94,238 | 152,886 | |||
Premiums receivable | 23,476 | (49,939) | |||
Other operating assets and liabilities | (255,008) | 11,953 | |||
Variable interest entity assets and liabilities of the InRe Fund (Note 11) | 684,367 | 0 | |||
Net cash flows provided by operating activities | 2,355,016 | 849,161 | |||
INVESTING ACTIVITIES: | |||||
Sales of subsidiaries, net of cash sold | (232,269) | 0 | |||
Sales and maturities of available-for-sale securities | 1,495,918 | 1,156,786 | |||
Purchase of available-for-sale securities | (3,451,516) | (1,759,023) | |||
Purchase of other investments | (307,429) | (656,757) | |||
Proceeds from other investments | 135,734 | 136,592 | |||
Purchase of equity method investments | 0 | (33,000) | |||
Dividends from equity method investments | 0 | 237 | |||
Other investing activities | 334 | (974) | |||
Consolidation of the InRe Fund opening cash and restricted cash balances (Note 11) | 574,081 | 0 | |||
Net cash flows used in investing activities | (1,785,147) | (1,156,139) | |||
FINANCING ACTIVITIES: | |||||
Dividends on preferred shares | (17,850) | (17,850) | |||
Dividends paid to noncontrolling interest | (634) | 0 | |||
Repurchase of shares | (7,200) | (11,433) | (12,526) | ||
Receipt of loans | 20,000 | 364,000 | |||
Repayment of loans | (30,000) | (14,000) | |||
Net cash flows provided by (used in) financing activities | (39,917) | 319,624 | |||
Net cash flows provided by operating activities | 0 | 95,096 | |||
Net cash flows used in investing activities | 0 | (93,940) | |||
Net cash flows from discontinued operations | 0 | 1,156 | |||
EFFECT OF EXCHANGE RATE CHANGES ON FOREIGN CURRENCY CASH AND CASH EQUIVALENTS | 2,527 | 4,526 | |||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 532,479 | 18,328 | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,373,116 | 971,349 | |||
NET CHANGE IN CASH OF BUSINESSES HELD FOR SALE | 223,200 | (1,156) | |||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 2,128,795 | 988,521 | 2,128,795 | 988,521 | $ 1,373,116 |
Supplemental Cash Flow Information: | |||||
Income taxes paid, net of refunds | 5,146 | 15,450 | |||
Interest paid | 31,408 | 26,783 | |||
Reconciliation to Condensed Consolidated Balance Sheets: | |||||
Cash and cash equivalents | 769,359 | 769,359 | 901,152 | ||
Restricted cash and cash equivalents | 356,899 | 356,899 | 471,964 | ||
Cash, cash equivalents and restricted cash | 2,128,795 | 988,521 | 2,128,795 | 988,521 | 1,373,116 |
Consolidated Entity, Excluding Consolidated VIE | |||||
Reconciliation to Condensed Consolidated Balance Sheets: | |||||
Cash and cash equivalents | 769,359 | 651,855 | 769,359 | 651,855 | |
Restricted cash and cash equivalents | 356,899 | 336,666 | 356,899 | 336,666 | |
InRe Fund | |||||
OPERATING ACTIVITIES: | |||||
NET EARNINGS | 196,558 | 196,558 | |||
Adjustments to reconcile net earnings to cash flows provided by operating activities: | |||||
Sales and maturities of trading securities | 2,029,295 | 2,029,295 | |||
Purchases of trading securities | (946,950) | (946,950) | |||
Payments to cover securities sold short | (685,140) | (685,140) | |||
Proceeds from securities sold short | 244,829 | 244,829 | |||
Net payments for derivative contracts | (77,773) | (77,773) | |||
Changes in: | |||||
Other operating assets and liabilities | (415) | (415) | |||
INVESTING ACTIVITIES: | |||||
Consolidation of the InRe Fund opening cash and restricted cash balances (Note 11) | 574,081 | 574,081 | |||
FINANCING ACTIVITIES: | |||||
Net cash flows provided by (used in) financing activities | (800,000) | (800,000) | |||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,002,537 | 1,002,537 | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 | |||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 1,002,537 | 0 | 1,002,537 | 0 | 0 |
Reconciliation to Condensed Consolidated Balance Sheets: | |||||
Cash and cash equivalents | 122,701 | 122,701 | |||
Restricted cash and cash equivalents | 879,836 | 879,836 | |||
Cash, cash equivalents and restricted cash | $ 1,002,537 | $ 0 | $ 1,002,537 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($)shares | |
Statement of Cash Flows [Abstract] | |
Distributions | $ 202,073 |
Shares issued (in shares) | shares | 89,590 |
Warrants exercised (in shares) | shares | 175,901 |
Capital withdrawals | $ 61,400 |
Other investments | 51,700 |
Unsettled purchases and sales of AFS investments | 55,900 |
Unsettled purchases and sales of other investments | 6,400 |
Contribution to other investments | 481,300 |
Redemption of other investments | 381,300 |
Decrease in investment fees | $ 100,000 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 1. SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation These unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, these financial statements reflect all adjustments consisting of normal recurring items considered necessary for a fair presentation under U.S. GAAP. The results of operations for any interim period are not necessarily indicative of results for the full year. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2020. All significant inter-company transactions and balances have been eliminated. In these notes, the terms "we," "us," "our," "Enstar," or "the Company" refer to Enstar Group Limited and its consolidated subsidiaries. During the first quarter of 2021, we revised our segment structure and as a result restated the prior period comparatives to conform with the current period presentation. Refer to Note 22 - "Segment Information" for further information. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Our actual results may differ materially from these estimates. Results of changes in estimates are reflected in earnings in the period in which the change is made. Accounting policies that we believe are most dependent on assumptions and estimates are considered to be our critical accounting policies and are related to the determination of: • liability for losses and loss adjustment expenses ("LAE"); • reinsurance balances recoverable on paid and unpaid losses; • defendant asbestos and environmental liabilities and related insurance balances recoverable; • valuation allowances on reinsurance balances recoverable and deferred tax assets; • impairment charges, including credit allowances on investment securities classified as available-for-sale ("AFS"), and impairments on deferred charge assets; • gross and net premiums written and net premiums earned; • fair value measurements of investments; • fair value estimates associated with accounting for acquisitions; • fair value estimates associated with loss portfolio transfer reinsurance agreements for which we have elected the fair value option; and • redeemable noncontrolling interests. New Accounting Standards Adopted in 2021 Accounting Standards Update ("ASU") 2020-08 – Codification Improvements to Subtopic 310-20 - Receivables - Nonrefundable Fees and Other Costs In October 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-08 to clarify that an entity should re-evaluate whether a callable debt security is within the scope of Accounting Standards Codification ("ASC") 310-20-35-33 during each reporting period and accelerate amortization of the premium associated with the callable debt to the earliest call date. All entities are required to apply the amendments in this ASU on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The adoption of ASU 2020-08 did not have a material impact on our condensed consolidated financial statements and the related disclosures. ASU 2020-06 – Accounting for Convertible Instruments and Contracts in an Entity's Own Equity In August 2020, the FASB issued ASU 2020-06, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. For convertible instruments, the ASU eliminates two of the three accounting models in ASC 470-20 that require separate accounting for embedded conversion features. The ASU also simplifies an issuer's application of the derivatives scope exception in ASC 815-40 for contracts in its own equity and removes some of the conditions that preclude a freestanding contract from being classified in equity, thereby allowing more of such contracts to qualify for equity classification. We early adopted the amendments in ASU 2020-06 as of January 1, 2021 and that adoption did not have an impact on our condensed consolidated financial statements and the related disclosures. ASU 2020-01 - Clarifying the Interactions between ASC 321, ASC 323 and ASC 815 In January 2020, the FASB issued ASU 2020-01 to clarify the interaction of the accounting for equity securities under ASC 321 and investments accounted for under the equity method of accounting in ASC 323 and the accounting for certain forward contracts and purchased options accounted for under ASC 815. With respect to the interactions between ASC 321 and ASC 323, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting when applying the measurement alternative in ASC 321, immediately before applying or upon discontinuing the equity method of accounting. With respect to forward contracts or purchased options to purchase securities, the amendments clarify that when applying the guidance in ASC 815-10-15-141(a), an entity should not consider whether upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in ASC 323 or the fair value option in accordance with ASC 825. The adoption of ASU 2020-01 did not have an impact on our condensed consolidated financial statements and disclosures. ASU 2019-12 - Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12 which removes certain exceptions for (1) recognizing deferred taxes for investments, (2) performing intraperiod tax allocation, and (3) calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating income taxes to a legal entity that is not subject to income taxes. The adoption of ASU 2019-12 did not have any impact on our condensed consolidated financial statements and disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted Note 2 - "Significant Accounting Policies" to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 describes accounting pronouncements that were not adopted as of December 31, 2020. Those pronouncements have not yet been adopted unless discussed above in "New Accounting Standards Adopted in 2021." In addition, the following accounting pronouncement was issued by the FASB during the three months ended June 30, 2021 and is yet to be adopted. ASU 2021-04 - Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity - Classified Written Call Options In May 2021, the FASB issued ASU 2021-04 which requires issuers to account for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after the modification or exchange based on the economic substance of the modification or exchange. Under the ASU, an issuer considers the facts and circumstances of a modification or exchange and accounts for the resulting change in fair value of the written call option based on whether the transaction was done to issue equity, to issue or modify debt, or for other reasons. The guidance clarifies that to the extent applicable, issuers should first reference other GAAP to account for the effect of a modification. If other GAAP is not applicable, the guidance clarifies whether to account for the modification or exchange as either (i) an adjustment to equity, or (ii) an expense. The ASU is to be applied prospectively and is effective for all entities for annual periods beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted, but entities need to apply the guidance as of the beginning of the fiscal year in which they early adopt it. |
Significant New Business
Significant New Business | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
SIGNIFICANT NEW BUSINESS | 2. SIGNIFICANT NEW BUSINESS We define significant new business as material transactions other than business acquisitions. Generally, our significant new business takes the form of loss portfolio transfer ("LPT") or adverse development cover ("ADC") reinsurance transactions or direct business transfers. The table below sets forth a summary of significant new business that we have completed between January 1, 2020 and June 30, 2021: Transaction Date Completed Total Assets Assumed Deferred Charge Asset (1) Total Assets from Transactions Total Liabilities Assumed Net Fair Value Adjustment (2) Total Liabilities from Transactions Type of Transaction and Primary Nature of Business Hiscox June 3, 2021 $ 532,394 N/A $ 532,394 $ 532,394 N/A $ 532,394 LPT of diversified legacy insurance business, including surplus lines broker business Coca-Cola May 24, 2021 41,928 6,143 48,071 48,071 N/A 48,071 LPT of U.S. workers' compensation liability AXA Group May 3, 2021 1,395,000 91,988 1,486,988 1,486,988 N/A 1,486,988 ADC of a diversified mix of global casualty and professional lines CNA February 5, 2021 651,736 105,479 757,215 757,215 N/A 757,215 LPT of U.S. excess workers' compensation liabilities Liberty Mutual (3) January 8, 2021 363,159 25,402 388,561 388,561 N/A 388,561 LPT of U.S. energy liability, construction liability and homebuilders liability Total 2021 $ 2,984,217 $ 229,012 $ 3,213,229 $ 3,213,229 $ — $ 3,213,229 Hannover Re August 6, 2020 $ 182,498 N/A $ 182,498 $ 209,713 $ (27,215) $ 182,498 Novation of U.S. asbestos, environmental and workers' compensation liabilities Munich Re July 1, 2020 100,956 N/A 100,956 100,956 N/A 100,956 Business Transfer of Australian public liability, professional liability and builders' warranty liabilities AXA Group (3) June 1, 2020 179,681 N/A 179,681 179,681 N/A 179,681 LPT of U.S. construction general liability Aspen June 1, 2020 770,000 11,746 781,746 781,746 N/A 781,746 ADC on a diversified mix of property, liability and specialty lines of business across the U.S., U.K. and Europe Lyft March 31, 2020 465,000 N/A 465,000 465,000 N/A 465,000 LPT of U.S. motor liabilities Total 2020 $ 1,698,135 $ 11,746 $ 1,709,881 $ 1,737,096 $ (27,215) $ 1,709,881 Total $ 4,682,352 $ 240,758 $ 4,923,110 $ 4,950,325 $ (27,215) $ 4,923,110 (1) Where the estimated ultimate losses payable exceed the premium consideration received at the inception of the agreement, a deferred charge asset is recorded. (2) When the fair value option is elected for any retroactive reinsurance agreement, an initial net fair value adjustment is recorded at the inception of the agreement. (3) We have ceded 10% of these transactions to Enhanzed Reinsurance Ltd. ("Enhanzed Re"), in which we have an investment, on the same terms and conditions as those received by us. Refer to Note 20 - "Related Party Transactions" for further details. Refer to Note 23 - "Subsequent Events" for additional information related transactions not completed as of June 30, 2021. |
Divestitures, Held-For-Sale Bus
Divestitures, Held-For-Sale Businesses and Discontinued Operations | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURES, HELD-FOR-SALE BUSINESSES AND DISCONTINUED OPERATIONS | 3. DIVESTITURES, HELD-FOR-SALE BUSINESSES AND DISCONTINUED OPERATIONS Atrium Exchange Transaction On August 13, 2020, we announced an exchange transaction with Trident V, L.P., Trident V Parallel Fund, L.P. and Trident V Professionals Fund, L.P. (collectively, the "Trident V Funds") managed by Stone Point Capital LLC ("Stone Point"). As part of the exchange, we entered into a recapitalization agreement with the Trident V Funds, Dowling Capital Partners I, L.P. and Capital City Partners LLC (collectively, the "Dowling Funds"), North Bay Holdings Limited ("North Bay"), and StarStone Specialty Holdings Limited ("SSHL"). On January 1, 2021, this transaction was completed. As of December 31, 2020, Enstar owned an indirect 59.0% interest in North Bay and the Trident V Funds and the Dowling Funds owned 39.3% and 1.7%, respectively. North Bay owns 100.0% of SSHL, the holding company for the StarStone group, which previously included StarStone's U.S. operations, including StarStone U.S. Holdings, Inc. and its subsidiaries (“StarStone U.S.”) and StarStone International. North Bay also owned 92.1% of Northshore Holdings Limited ("Northshore"), the holding company that owns Atrium Underwriting Group Limited and its subsidiaries (collectively, "Atrium") and Arden Reinsurance Company Ltd. ("Arden"). The remaining share ownership of Northshore is held on behalf of certain Atrium employees. Pursuant to the terms of the recapitalization agreement, we exchanged a portion of our indirect interest in Northshore for all of the Trident V Funds’ indirect interest in StarStone U.S., which was owned through an interest in Core Specialty Insurance Holdings, Inc. (“Core Specialty”) (the “Exchange Transaction”). Subsequent to the Exchange Transaction, the Trident V Funds no longer hold any interest in Core Specialty, and the common shares of Core Specialty received as part consideration for the sale of StarStone U.S. were distributed to Enstar and the Dowling Funds. Effective January 1, 2021, we owned 25.2% on a fully diluted basis (24.7% as of June 30, 2021) of Core Specialty, which in turn owns StarStone U.S., and 13.8% of Northshore, which continues to own Atrium and Arden. The Trident V Funds own 76.3% of Northshore, while the Dowling Funds own 0.4% of Core Specialty and 1.6% of Northshore. The Exchange Transaction had no impact on the ultimate ownership of SSHL, which continues to own StarStone International, with us, the Trident V Funds and the Dowling Funds retaining our and their ownership interests in SSHL of 59.0%, 39.3% and 1.7%, respectively. Effective January 1, 2021, Northshore was de-consolidated and our remaining investment with a carrying value of $34.0 million as of June 30, 2021 is accounted for as a privately held equity investment and carried at its fair value. During the first quarter of 2021, we recognized a loss of $7.8 million on completion of the Exchange Transaction. Through our wholly owned subsidiary, SGL No. 1 Limited (“SGL No. 1”), a Lloyd’s corporate member, we provided 25% of the underwriting capacity on the 2017 to 2020 underwriting years of Atrium's Syndicate 609 at Lloyd’s. Effective January 1, 2021, and in conjunction with the completion of the Exchange Transaction, SGL No.1 ceased its provision of underwriting capacity on Syndicate 609 for future underwriting years. SGL No.1 is obligated to support underwriting capacity on Syndicate 609 through the provision of FAL, and will settle its share of the 2020 and prior underwriting years for the economic benefit of Atrium via reinsurance agreements with Arden and a Syndicate 609 Capacity Lease Agreement with Atrium 5 Limited, a UK domiciled subsidiary of Atrium. As a result of these contractual arrangements, the net loss reserve liabilities, and the cash, investments and other assets that support those liabilities, will be settled by: i) the distribution of SGL No.1’s share of the Syndicate 609 result; ii) the settlement of the net payable or receivable position on the reinsurance agreement with Arden; and iii) the required settlement, if any, of the Syndicate 609 Capacity Lease Agreement payable, each of which will occur no earlier than December 31, 2022. December 31, 2020 Distribution of SGL No.1 share of Syndicate 609 results $ 19,115 Due to Arden under reinsurance agreement (7,965) Due to Atrium 5 Limited under Capacity Lease Agreement (11,150) Net balances with Northshore Group — Until these balances are settled, as at January 1, 2021, the Company recognized gross loss reserves of $254.6 million, reinsurance recoverable of $90.8 million, and $163.8 million of net assets required to support the net insurance liabilities. Additionally, although the value of and the change in other insurance assets and liabilities are recorded gross within our Legacy Underwriting segment, there is no retention by Enstar of the net results of Atrium's 2020 and prior underwriting years as the business was contractually transferred to the Atrium entities that were divested in the Exchange Transaction. We recorded net unearned premium of $37.4 million and deferred acquisition costs of $20.3 million, included within other assets on our consolidated balance sheet, as of January 1, 2021. Effective January 1, 2021, balances that SGL No. 1 has with Atrium and Arden are no longer eliminated in our condensed consolidated financial statements. As of December 31, 2020, we classified the assets and liabilities of Northshore as held-for-sale, but Northshore did not qualify as a discontinued operation since the pending disposal did not represent a strategic shift that would have a major effect on our operations and financial results. The following table summarizes the components of Northshore's assets and liabilities held-for-sale on our condensed consolidated balance sheet: December 31, 2020 ASSETS Short-term investments, AFS, at fair value $ 1,720 Fixed maturities, trading, at fair value 154,026 Fixed maturities, AFS, at fair value 7,483 Other investments, at fair value 9,897 Total investments 173,126 Cash and cash equivalents 71,156 Restricted cash and cash equivalents 152,044 Premiums receivable 62,392 Reinsurance balances recoverable on paid and unpaid losses 37,341 Funds held by reinsured companies 32,226 Other assets 182,993 TOTAL ASSETS HELD-FOR-SALE $ 711,278 LIABILITIES Losses and loss adjustment expenses $ 254,149 Insurance and reinsurance balances payable 12,393 Debt obligations 39,850 Other liabilities 177,265 TOTAL LIABILITIES HELD-FOR-SALE $ 483,657 NET ASSETS HELD-FOR-SALE $ 227,621 As of December 31, 2020, included in the table above were restricted investments of $94.4 million. Recapitalization of StarStone U.S. and Discontinued Operations On November 30, 2020, we completed the sale and recapitalization of StarStone U.S. through the sale of StarStone U.S. to Core Specialty, a newly formed entity with equity backing from funds managed by SkyKnight Capital, L.P., Dragoneer Investment Group and Aquiline Capital Partners LLC. We received consideration of $282.0 million inclusive of $235.0 million of common shares of Core Specialty and cash of $47.0 million. At the closing date, the $235.0 million of common shares of Core Specialty represented a 25.2% interest in Core Specialty on a fully diluted basis (24.7% as of June 30, 2021). Our investment in Core Specialty is accounted for as an equity method investment, and we record our proportionate share of the net earnings on a quarter lag. The StarStone U.S. business qualified as a discontinued operation. The following table summarizes the components of net loss from discontinued operations, net of income taxes, related to StarStone U.S., on the consolidated statements of earnings: Three Months Ended June 30, Six Months Ended June 30, 2020 2020 INCOME Net premiums earned $ 65,403 $ 165,949 Net investment income 3,699 7,414 Net realized and unrealized gains 6,262 847 Other income 24 25 75,388 174,235 EXPENSES Net incurred losses and loss adjustment expenses 48,115 112,709 Acquisition costs 12,251 32,794 General and administrative expenses 15,645 30,729 Interest expense 591 1,180 Net foreign exchange gains (11) (2) 76,591 177,410 LOSS BEFORE INCOME TAXES (1,203) (3,175) Income tax benefit (expense) 51 (46) NET LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES (1,152) (3,221) Net loss from discontinued operations attributable to noncontrolling interest 473 1,321 NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS $ (679) $ (1,900) Continuing Involvement Disclosures Following the completion of the sale of StarStone U.S. to Core Specialty on November 30, 2020, our continuing involvement with StarStone U.S. comprised of the following transactions: LPT and ADC reinsurance agreement In connection with the sale of StarStone U.S. to Core Specialty, one of our insurance subsidiaries entered into a loss portfolio transfer (“LPT”) and adverse development cover (“ADC”) reinsurance agreement with StarStone U.S. pursuant to which we reinsured all of the net loss reserves of StarStone U.S. in respect of premium earned prior to October 31, 2020. Under the terms of the LPT and ADC reinsurance agreement, we assumed total net loss reserves of $462.4 million from StarStone U.S. in exchange for a total reinsurance premium consideration of $478.2 million, subject to an aggregate limit of $130.0 million above the assumed total net loss reserves. Our subsidiary's obligations to StarStone U.S. under the LPT and ADC reinsurance agreement are guaranteed by us. The LPT and ADC reinsurance agreement between us and StarStone U.S. shall continue in force until such time as our liability with respect to the assumed total net loss reserves terminates. Concurrent with the closing of the LPT and ADC reinsurance agreement, one of our wholly-owned subsidiaries entered into an Administrative Services Agreement ("ASA") with StarStone U.S., through which it was appointed as an independent contractor to provide certain administrative services covering the business we assumed from StarStone U.S. through the LPT and ADC reinsurance agreement. This ASA became effective on November 30, 2020 and shall continue in force (subject to certain limited exceptions) until such time as the LPT and ADC reinsurance agreement between us and StarStone U.S. terminates. In addition, concurrent with the sale of StarStone U.S. to Core Specialty, which was completed on November 30, 2020, one of our wholly-owned subsidiaries entered into a Transition Services Agreement ("TSA") with Core Specialty through which our subsidiary and Core Specialty agreed to provide certain transitional services to each other relating to the StarStone U.S. businesses, for a specified period of time. This TSA became effective on November 30, 2020 and unless otherwise agreed to in writing by both Core Specialty and us, shall terminate on the earliest to occur of (a) the 2-year anniversary of the agreement, (b) the date on which all the covered transitional services have been terminated, and (c) the termination of the agreement. Reinsurance transactions previously eliminated on consolidation The table below presents a summary of the total income and expenses which have been recognized within our continuing operations relating to transactions, primarily reinsurances, between StarStone U.S. and our subsidiaries: Three Months Ended June 30, Six Months Ended June 30, 2021 2021 2020 2021 2020 Total income (1) $ (1,959) $ 3,650 $ (387) $ 7,363 Total expenses (income) (1) 3,468 (7,239) 1,068 (14,899) Net earnings (loss) $ (5,427) $ 10,889 $ (1,455) $ 22,262 (1) For the three and six months ended June 30, 2021 and 2020, negative total income was driven by a premium adjustment and negative total expenses were driven by favorable loss development on the losses and LAE reserves ceded by StarStone U.S. to our subsidiaries. Cash flows The cash inflows (outflows) between our subsidiaries and StarStone U.S. for the six months ended June 30, 2021 and 2020 were $7.6 million and ($9.8 million), respectively. Equity method investment We have applied the equity method of accounting to the common shares we acquired in Core Specialty as part-consideration for the sale of StarStone U.S. and which made up 25.2% of the total outstanding common shares in Core Specialty on a fully diluted basis as of November 30, 2020 when we completed the sale and recapitalization of StarStone U.S. (24.7% as of June 30, 2021). Our investment in the common shares of Core Specialty, which is included in equity method investments on our condensed consolidated balance sheet, was $224.3 million as of June 30, 2021 (December 31, 2020: $235.0 million). Following the completion of the Exchange Transaction on January 1, 2021 as described above, common shares in Core Specialty with a carrying value of $4.0 million were distributed to redeemable noncontrolling interests as discussed in Note 15 - "Noncontrolling Interests." During the three and six months ended June 30, 2021 our share of net loss on our investment in Core Specialty, which is included within earnings from equity method investments in our condensed consolidated statement of earnings, was $3.7 million and $6.7 million, respectively. Run-off of StarStone International (non-U.S.) On June 10, 2020, we announced that we placed StarStone International into an orderly run-off (the "StarStone International Run-Off"). The liabilities associated with the StarStone International Run-Off vary in duration, and the run-off is expected to occur over a number of years. Steps to reduce the size of StarStone International's operations have begun and will involve several phases that will occur over time. As a result, we cannot anticipate with certainty the expected completion date of the StarStone International Run-Off. We continue to evaluate additional strategic options for StarStone International's operations and business. Consequently, such options could have the effect of mitigating costs associated with placing the business into run-off. The remaining StarStone International operations will continue to serve the needs of policyholders and ensure that the companies continue to meet all regulatory requirements. The results of StarStone International are included within continuing operations in the Run-off segment. Recent developments relating to StarStone International include: • On March 15, 2021, we sold StarStone Underwriting Limited ("SUL"), the Lloyd's managing agency, together with the right to operate Lloyd's Syndicate 1301, to Inigo Limited ("Inigo"). As of December 31, 2020, we had a 59.0% interest in SUL and the Trident V Funds and the Dowling Funds owned 39.3% and 1.7%, respectively. Upon closing, Enstar, the Trident V Funds and the Dowling Funds received consideration of $30.0 million in the form of Inigo shares and $0.6 million in cash. Following the completion of the sale of SUL to Inigo on March 15, 2021, we recognized a gain on the sale of $23.1 million in the first quarter of 2021. In addition, Enstar and the Trident V Funds have committed to invest up to $27.0 million and $18.0 million, respectively, into Inigo. As of June 30, 2021, Enstar had funded $16.9 million of its capital commitment to Inigo, with $10.1 million yet to be called by Inigo. As of June 30, 2021, our investment in Inigo was $34.6 million (December 31, 2020: $16.9 million) representing 6.5% of the total outstanding ordinary shares of Inigo and was accounted for as a privately held equity investment and carried at fair value. In conjunction with the transaction, Enstar, the Trident V Funds and the Dowling Funds will retain the economics of Syndicate 1301’s 2020 and prior years’ underwriting portfolios as this business runs off. • On February 11, 2021, we sold Arena N.V., a Belgium-based specialist accident and health managing general agent for consideration of $1.0 million. We recognized a loss on the sale of $0.3 million during the first quarter of 2021. The following table provides a summary of the net gain on sales of subsidiaries included in the condensed consolidated statement of earnings: Six Months Ended June 30, 2021 Atrium (7,844) SUL 23,067 Arena (329) Net gain on sales of subsidiaries 14,894 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | 4. INVESTMENTS We hold: (i) trading portfolios of short-term and fixed maturity investments and equities, carried at fair value; (ii) AFS portfolios of short-term and fixed maturity investments, carried at fair value; (iii) other investments, carried at fair value; (iv) equity method investments; and (v) funds held - directly managed. Effective April 1, 2021, the InRe Fund was consolidated by us. As a result, the carrying amounts of the assets and liabilities of the InRe Fund are presented separately in “variable interest entity assets of the InRe Fund” and “variable interest entity liabilities of the InRe Fund” within the consolidated balance sheet as of June 30, 2021. Refer to Note 11 - "Variable Interest Entities" for additional information. Short-term and Fixed Maturity Investments Asset Types The fair values of the underlying asset categories comprising our short-term and fixed maturity investments classified as trading and AFS and the fixed maturity investments included within our funds held - directly managed balance were as follows: June 30, 2021 Short-term investments, trading Short-term investments, AFS Fixed maturities, trading Fixed maturities, AFS Fixed maturities, funds held - directly managed Total U.S. government and agency $ 15,683 $ 88,177 $ 109,398 $ 450,424 $ 125,757 $ 789,439 U.K. government — — 30,110 11,586 — 41,696 Other government 4,105 — 334,134 125,647 16,393 480,279 Corporate — 22,296 2,884,794 3,225,992 519,916 6,652,998 Municipal — — 86,860 105,550 52,049 244,459 Residential mortgage-backed — — 130,711 397,707 43,821 572,239 Commercial mortgage-backed — — 296,776 483,990 206,488 987,254 Asset-backed — — 215,619 665,142 54,832 935,593 Total fixed maturity and short-term investments $ 19,788 $ 110,473 $ 4,088,402 $ 5,466,038 $ 1,019,256 $ 10,703,957 December 31, 2020 Short-term investments, trading Short-term investments, AFS Fixed maturities, trading Fixed maturities, AFS Fixed maturities, funds held - directly managed Total U.S. government and agency $ — $ 243,556 $ 123,874 $ 474,442 $ 109,176 $ 951,048 U.K. government — — 37,508 13,574 — 51,082 Other government 3,424 3,213 327,437 146,914 21,165 502,153 Corporate 1,705 17,026 3,227,726 1,920,323 519,952 5,686,732 Municipal — — 79,959 30,032 52,678 162,669 Residential mortgage-backed — — 154,471 328,871 70,603 553,945 Commercial mortgage-backed — — 347,225 276,488 230,377 854,090 Asset-backed — — 296,692 204,456 56,312 557,460 Total fixed maturity and short-term investments $ 5,129 $ 263,795 $ 4,594,892 $ 3,395,100 $ 1,060,263 $ 9,319,179 Contractual Maturities The contractual maturities of our short-term and fixed maturity investments, classified as trading and AFS and the fixed maturity investments included within our funds held - directly managed balance are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. As of June 30, 2021 Amortized Fair Value % of Total Fair Value One year or less $ 527,076 $ 532,927 5.0 % More than one year through two years 936,548 953,402 8.9 % More than two years through five years 2,405,532 2,479,482 23.3 % More than five years through ten years 2,355,524 2,455,554 22.9 % More than ten years 1,664,804 1,787,506 16.7 % Residential mortgage-backed 569,169 572,239 5.3 % Commercial mortgage-backed 966,496 987,254 9.2 % Asset-backed 939,474 935,593 8.7 % $ 10,364,623 $ 10,703,957 100.0 % Credit Ratings The following table sets forth the credit ratings of our short-term and fixed maturity investments classified as trading and AFS and the fixed maturity investments included within our funds held - directly managed balance as of June 30, 2021: Amortized Fair Value % of Total AAA AA Rated A Rated BBB Non- Not Rated U.S. government and agency $ 784,054 $ 789,439 7.4 % $ 788,822 $ 381 $ — $ 236 $ — $ — U.K. government 40,011 41,696 0.4 % — 34,379 7,317 — — — Other government 460,069 480,279 4.5 % 213,984 168,864 46,640 45,889 4,902 — Corporate 6,378,115 6,652,998 62.2 % 166,647 663,162 2,964,842 2,550,601 291,394 16,352 Municipal 227,235 244,459 2.3 % 11,820 129,533 82,076 20,937 — 93 Residential mortgage-backed 569,169 572,239 5.3 % 557,182 2,423 2,201 8,920 1,413 100 Commercial mortgage-backed 966,496 987,254 9.2 % 705,402 116,062 85,728 71,649 3,831 4,582 Asset-backed 939,474 935,593 8.7 % 348,411 279,778 199,722 82,737 21,781 3,164 Total $ 10,364,623 $ 10,703,957 100.0 % $ 2,792,268 $ 1,394,582 $ 3,388,526 $ 2,780,969 $ 323,321 $ 24,291 % of total fair value 26.1 % 13.0 % 31.7 % 26.0 % 3.0 % 0.2 % Unrealized Gains and Losses on AFS Short-term and Fixed Maturity Investments The amortized cost, unrealized gains and losses, allowance for credit losses and fair values of our short-term and fixed maturity investments classified as AFS were as follows: Gross Unrealized Losses As of June 30, 2021 Amortized Cost Gross Unrealized Gains Non-Credit Related Losses Allowance for Credit Losses Fair Value U.S. government and agency $ 539,883 $ 1,754 $ (3,036) $ — $ 538,601 U.K. government 11,357 289 (60) — 11,586 Other government 122,336 3,882 (530) (41) 125,647 Corporate 3,231,801 39,415 (15,757) (7,171) 3,248,288 Municipal 103,993 1,823 (266) — 105,550 Residential mortgage-backed 398,564 1,666 (2,506) (17) 397,707 Commercial mortgage-backed 481,909 5,277 (3,039) (157) 483,990 Asset-backed 664,262 1,230 (350) — 665,142 $ 5,554,105 $ 55,336 $ (25,544) $ (7,386) $ 5,576,511 Gross Unrealized Losses As of December 31, 2020 Amortized Cost Gross Unrealized Gains Non-Credit Related Losses Allowance for Credit Losses Fair Value U.S. government and agency $ 715,527 $ 3,305 $ (834) $ — $ 717,998 U.K. government 12,494 1,080 — — 13,574 Other government 142,459 7,721 (53) — 150,127 Corporate 1,873,184 65,913 (1,567) (181) 1,937,349 Municipal 28,881 1,155 (4) — 30,032 Residential mortgage-backed 326,268 3,292 (689) — 328,871 Commercial mortgage-backed 273,516 5,202 (2,097) (133) 276,488 Asset-backed 204,312 846 (694) (8) 204,456 $ 3,576,641 $ 88,514 $ (5,938) $ (322) $ 3,658,895 Gross Unrealized Losses on AFS Short-term and Fixed Maturity Investments The following tables summarizes our short-term and fixed maturity investments classified as AFS that were in a gross unrealized loss position, for which an allowance for credit losses has not been recorded: 12 Months or Greater Less Than 12 Months Total As of June 30, 2021 Fair Gross Unrealized Fair Gross Unrealized Fair Gross Unrealized U.S. government and agency $ — $ — $ 413,863 $ (3,036) $ 413,863 $ (3,036) U.K. government — — 4,175 (60) 4,175 (60) Other government — — 26,701 (257) 26,701 (257) Corporate 2,016 (49) 1,174,039 (6,928) 1,176,055 (6,977) Municipal — — 26,310 (266) 26,310 (266) Residential mortgage-backed 2,372 (2) 256,022 (2,340) 258,394 (2,342) Commercial mortgage-backed 2,885 (65) 265,257 (2,843) 268,142 (2,908) Asset-backed — — 433,875 (350) 433,875 (350) Total short-term and fixed maturity investments $ 7,273 $ (116) $ 2,600,242 $ (16,080) $ 2,607,515 $ (16,196) 12 Months or Greater Less Than 12 Months Total As of December 31, 2020 Fair Gross Unrealized Fair Gross Unrealized Fair Gross Unrealized U.S. government and agency $ — $ — $ 55,839 $ (834) $ 55,839 $ (834) Other government — — 7,971 (53) 7,971 (53) Corporate — — 199,048 (1,224) 199,048 (1,224) Municipal — — 1,690 (4) 1,690 (4) Residential mortgage-backed 4,626 (125) 79,149 (564) 83,775 (689) Commercial mortgage-backed 38 (38) 67,094 (1,562) 67,132 (1,600) Asset-backed — — 116,827 (564) 116,827 (564) Total short-term and fixed maturity investments $ 4,664 $ (163) $ 527,618 $ (4,805) $ 532,282 $ (4,968) As of June 30, 2021 and December 31, 2020, the number of securities classified as AFS in an unrealized loss position for which an allowance for credit loss is not recorded was 1,503 and 407, respectively. Of these securities, the number of securities that had been in an unrealized loss position for twelve months or longer was 13 and 2, respectively. We adopted ASU 2016-13 and the related amendments on January 1, 2020 prospectively, and recognized an allowance for credit losses of $3.1 million on initial adoption of the guidance. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. Our allowance for credit losses is derived based on various data sources, multiple key inputs and forecast scenarios. These include default rates specific to the individual security, vintage of the security, geography of the issuer of the security, industry analyst reports, credit ratings and consensus economic forecasts. To determine the credit losses on our AFS securities, we use the probability of default ("PD") and loss given default ("LGD") methodology through a third-party proprietary tool which calculates the expected credit losses based on a discounted cash flow method. The tool uses effective interest rates to discount the expected cash flows associated with each AFS security to determine its fair value, which is then compared with its amortized cost basis to derive the credit loss on the security. The methodology and inputs used to determine the credit losses by security type are as follows: • Corporate and Government: Expected cashflows are derived that are specific to each security. The PD is based on a quantitative model that converts agency ratings to term structures that vary by country, industry and the state of the credit cycle. This is used along with macroeconomic forecasts to produce scenario conditioned PDs. The LGD is based on default studies provided by a third party which we use along with macroeconomic forecasts to produce scenario conditioned LGDs. • Municipals : Expected cash flows are derived that are specific to each security. The PD model produces scenario conditioned PD output over the lifetime of the municipal security. These PDs are based on key macroeconomic and instrument specific risk factors. The LGD is derived based on a model which uses assumptions specific to the municipal securities. For corporate, government and municipal securities, we use an explicit reversion and a three year forecast period, which we consider to be a reasonable duration during which an economic forecast could continue to be reliable. • Asset-backed, Commercial and Residential mortgage-backed: Expected cash flows are derived that are specific to each security. The PD and LGD for each security is based on a quantitative model that generates scenario conditioned PD and LGD term structures based on the underlying collateral type, waterfall and other trustee information. This model also considers prepayments. For these security types, there is no explicit reversion and the forecasts are deemed reasonable and supportable over the life of the portfolio. Due to the short-term period during which accrued investment income remains unpaid, which is typically six months or less since the coupon on our debt securities is paid semi-annually or more frequently, we elected not to establish an allowance for credit losses on our accrued investment income balances. Accrued investment income is written off through net realized investment gains (losses) at the time the issuer of the debt security defaults or is expected to default on payments. The following tables provide a reconciliation of the beginning and ending allowance for credit losses on our AFS debt securities: Three Months Ended June 30, 2021 Other Corporate Residential mortgage-backed Commercial Asset-backed Total Allowance for credit losses, beginning of period $ (68) $ (12,206) $ — $ (264) $ — $ (12,538) Allowances for credit losses on securities for which credit losses were not previously recorded — (455) (17) (5) (39) (516) Reductions for securities sold during the period 1 61 — — — 62 Decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period 26 5,429 — 112 39 5,606 Allowance for credit losses, end of period $ (41) $ (7,171) $ (17) $ (157) $ — $ (7,386) Three Months Ended June 30, 2020 Other Corporate Commercial Asset-backed Total Allowance for credit losses, beginning of period $ — $ (14,323) $ (1) $ — $ (14,324) Allowances for credit losses on securities for which credit losses were not previously recorded — (149) (493) (89) (731) Reductions for securities sold during the period — 1,388 — — 1,388 Decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period — 9,994 — — 9,994 Allowance for credit losses, end of period $ — $ (3,090) $ (494) $ (89) $ (3,673) Six Months Ended June 30, 2021 Other Corporate Residential mortgage-backed Commercial Asset-backed Total Allowance for credit losses, beginning of period $ — $ (181) $ — $ (133) $ (8) $ (322) Allowances for credit losses on securities for which credit losses were not previously recorded (68) (12,577) (17) (237) (39) (12,938) Reductions for securities sold during the period 1 72 — — — 73 Decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period 26 5,515 — 213 47 5,801 Allowance for credit losses, end of period $ (41) $ (7,171) $ (17) $ (157) $ — $ (7,386) Six Months Ended June 30, 2020 Other Corporate Commercial Asset-backed Total Allowance for credit losses, beginning of period $ — $ — $ — $ — $ — Cumulative effect of change in accounting principle (22) (2,987) (50) — (3,059) Allowances for credit losses on securities for which credit losses were not previously recorded — (1,876) (444) (89) (2,409) Reductions for securities sold during the period — 1,773 — — 1,773 Reductions in the allowance for credit losses on securities we either intend to sell or more likely than not, we will be required to sell before the recovery of their amortized cost basis 22 — — — 22 Allowance for credit losses, end of period $ — $ (3,090) $ (494) $ (89) $ (3,673) During the three and six months ended June 30, 2021 and 2020 we did not have any write-offs charged against the allowance for credit losses or any recoveries of amounts previously written-off. Equity Investments The following table summarizes our equity investments classified as trading: June 30, 2021 December 31, 2020 Publicly traded equity investments in common and preferred stocks $ 304,701 $ 260,767 Exchange-traded funds 504,793 311,287 Privately held equity investments in common and preferred stocks 348,725 274,741 $ 1,158,219 $ 846,795 Equity investments include publicly traded common and preferred stocks, exchange-traded funds and privately held common and preferred stocks. Our publicly traded equity investments in common and preferred stocks predominantly trade on major exchanges. Our investments in exchange-traded funds also trade on major exchanges. Our privately held equity investments in common and preferred stocks are direct investments in companies that we believe offer attractive risk adjusted returns and/or offer other strategic advantages. Each investment may have its own unique terms and conditions and there may be restrictions on disposals. There is no active market for these investments. Refer to Note 20 - "Related Party Transactions" for further information on certain privately held equity investments. Other Investments, at fair value The following table summarizes our other investments carried at fair value: June 30, 2021 December 31, 2020 Hedge funds (1) $ 73,130 $ 2,638,339 Fixed income funds 603,889 552,541 Equity funds 5,617 190,767 Private equity funds 536,368 363,103 CLO equities 145,103 128,083 CLO equity funds 190,158 166,523 Private credit funds 242,359 192,319 Others 17,969 12,359 $ 1,814,593 $ 4,244,034 (1) Effective April 1, 2021, the InRe Fund was consolidated by us. As a result, the carrying amounts of the assets and liabilities of the InRe Fund are presented separately in “variable interest entity assets of the InRe Fund” and “variable interest entity liabilities of the InRe Fund” within the condensed consolidated balance sheet as of June 30, 2021. Refer to Note 11 - "Variable Interest Entities" for additional information. As of December 31, 2020, our investment in the InRe Fund was $2.4 billion. The valuation of our other investments is described in Note 10 - "Fair Value Measurements." Due to a lag in the valuations of certain funds reported by the managers, we may record changes in valuation with up to a three-month lag. We regularly review and discuss fund performance with the fund managers to corroborate the reasonableness of the reported net asset values and to assess whether any events have occurred within the lag period that would affect the valuation of the investments. The following is a description of the nature of each of these investment categories: • Hedge funds invest in fixed income, equity and other investments. As noted above the InRe hedge fund was consolidated effective April 1, 2021. • Fixed income funds comprise a number of positions in diversified fixed income funds that are managed by third-party managers. Underlying investments vary from high-grade corporate bonds to non-investment grade senior secured loans and bonds, in both liquid and illiquid markets. The liquid fixed income funds have regularly published prices. • Equity funds invest primarily in European public equities. • Private equity funds include primary, secondary, and direct co-investment opportunities. • CLO equities comprise investments in the equity tranches of term-financed securitizations of diversified pools of corporate bank loans. • CLO equity funds invest primarily in the equity tranches of term-financed securitizations of diversified pools of corporate bank loans. • Private credit funds invest primarily in direct senior or collateralized loans. • Others primarily comprise of real estate funds that invests primarily in commercial real estate equity. As of June 30, 2021, we had unfunded commitments of $1.4 billion to other investments. Certain of our other investments are subject to restrictions on redemptions and sales that are determined by the governing documents, which limits our ability to liquidate those investments. These restrictions may include lock-ups, redemption gates, restricted share classes or side pockets, restrictions on the frequency of redemption and notice periods. A gate is the ability to deny or delay a redemption request, whereas a side-pocket is a designated account for which the investor loses its redemption rights. Certain other investments may not have any restrictions governing their sale, but there is no active market and no guarantee that we will be able to execute a sale in a timely manner. In addition, even if certain other investments are not eligible for redemption or sales are restricted, we may still receive income distributions from those other investments. The table below details the estimated date by which proceeds would be received if we had provided notice of our intent to redeem or initiated a sales process as of June 30, 2021: Less than 1 Year 1-2 years 2-3 years More than 3 years Not Eligible/ Restricted Total Redemption Frequency Hedge funds $ 73,130 $ — $ — $ — $ — $ 73,130 Monthly to Bi-annually Fixed income funds 568,474 — — — 35,415 603,889 Daily to Quarterly Equity funds 5,617 — — — — 5,617 Daily Private equity funds — 50,950 — — 485,418 536,368 Quarterly CLO equities 145,103 — — — — 145,103 Daily to Quarterly CLO equity funds 172,776 11,260 5,757 — 365 190,158 Quarterly to Bi-annually Private credit funds — — — — 242,359 242,359 N/A Other — — — — 17,969 17,969 N/A $ 965,100 $ 62,210 $ 5,757 $ — $ 781,526 $ 1,814,593 As of December 31, 2020, we had $48.2 million of hedge funds subject to gates or side-pockets. Equity Method Investments The table below shows our equity method investments: June 30, 2021 December 31, 2020 Ownership % Carrying Value Ownership % Carrying Value Enhanzed Re 47.4 % $ 433,993 47.4 % $ 330,289 Citco (1) 31.9 % 54,069 31.9 % 53,022 Monument Re (2) 20.0 % 204,322 20.0 % 193,716 Core Specialty 24.7 % 224,270 25.2 % 235,000 Other ~27% 19,776 ~27% 20,268 $ 936,430 $ 832,295 (1) We own 31.9% of the common shares in HH CTCO Holdings Limited, which owns 15.4% of the convertible preferred shares of Citco III Limited ("Citco"), amounting to a 6.2% interest in the total equity of Citco. (2) We own 20.0% of the common shares in Monument Re as well as different classes of preferred shares which have fixed dividend yields and whose balances are included in the Investment amount. Refer to Note 20 - "Related Party Transactions" for further information regarding the investments above. As of June 30, 2021, we had unfunded commitments of $68.7 million related to Enhanzed Re. Refer to Note 23 - "Subsequent Events" for additional information related to transactions with Enhanzed Re and Monument Re subsequent to June 30, 2021. Funds Held Under funds held arrangements, the reinsured company has retained funds that would otherwise have been remitted to our reinsurance subsidiaries. We either have (i) funds held by reinsured companies, which are carried at amortized cost and on which we receive a fixed crediting rate, or (ii) funds held - directly managed, which are carried at fair value and on which we receive the underlying return on the portfolio. The investment returns on funds held by reinsurance companies are recognized in net investment income and the investment returns on funds held -directly managed are recognized in net investment income and net realized and unrealized gains (losses). The funds held balance is credited with investment income and losses payable are deducted. Funds Held - Directly Managed Funds held - directly managed, where we receive the underlying return on the investment portfolio, are carried at fair value, either because we elected the fair value option at the inception of the reinsurance contract, or because it represents the aggregate of funds held at amortized cost and the fair value of an embedded derivative. The embedded derivative relates to our contractual right to receive the return on the underlying investment portfolio supporting the reinsurance contract. We include the estimated fair value of these embedded derivatives in the condensed consolidated balance sheets with the host contract in order to reflect the expected settlement of these features with the host contract. The change in the fair value of the embedded derivative is included in net unrealized gains (losses). The following table summarizes the components of the funds held - directly managed: June 30, 2021 December 31, 2020 Short-term and fixed maturity investments, trading $ 1,019,256 $ 1,060,263 Cash and cash equivalents 3,895 9,067 Other assets 5,352 5,560 $ 1,028,503 $ 1,074,890 The following table summarizes the fixed maturity investment components of funds held - directly managed: June 30, 2021 December 31, 2020 Funds held - Directly Managed - Fair Value Option Funds held - Directly Managed - Variable Return Total Funds held - Directly Managed - Fair Value Option Funds held - Directly Managed - Variable Return Total Short-term and fixed maturity investments, at amortized cost $ 108,654 $ 843,482 $ 952,136 $ 106,938 $ 859,403 $ 966,341 Net unrealized gains: Change in fair value - fair value option accounting 7,212 — 7,212 9,693 — 9,693 Change in fair value - embedded derivative accounting — 59,908 59,908 — 84,229 84,229 Short-term fixed maturity investments within funds held - directly managed, at fair value $ 115,866 $ 903,390 $ 1,019,256 $ 116,631 $ 943,632 $ 1,060,263 Refer to the sections above for details of the short-term and fixed maturity investments within our funds held - directly managed portfolios. Funds Held by Reinsured Companies Funds held by reinsured companies, where we received a fixed crediting rate, are carried at cost on our condensed consolidated balance sheets. As of June 30, 2021 and December 31, 2020, we had funds held by reinsured companies of $2.2 billion and $635.8 million, respectively. The increase from December 31, 2020 was primarily driven by the transactions with AXA Group and Hiscox as described in Note 2 - "Significant New Business." Net Investment Income Major categories of net investment income are summarized as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Fixed maturity investments $ 46,996 $ 52,837 $ 92,477 $ 106,279 Short-term investments and cash and cash equivalents (188) 752 (182) 3,377 Funds held by reinsured companies 32,420 24,099 32,008 24,369 Funds held - directly managed 6,894 10,685 13,931 19,501 Investment income from fixed maturities and cash and cash equivalents 86,122 88,373 138,234 153,526 Equity investments 4,632 3,762 8,930 9,725 Other investments 8,831 5,291 18,125 13,384 Investment income from equities and other investments 13,463 9,053 27,055 23,109 Gross investment income 99,585 97,426 165,289 176,635 Investment expenses (3,267) (2,983) (6,882) (7,478) Net investment expenses of the InRe Fund (1) (20,171) — (20,171) — Net investment income $ 76,147 $ 94,443 $ 138,236 $ 169,157 (1) Effective April 1, 2021, the InRe Fund was consolidated by us. Refer to Note 11 - "Variable Interest Entities" for additional information. Prior to this, all income or loss from the InRe Fund was determined by the change in net asset value (NAV) of our holdings in the fund, which was included within net realized and unrealized gains (losses) from other investments. Net Realized and Unrealized Gains (Losses) Components of net realized and unrealized gains (losses) were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net realized gains (losses) on sales: Gross realized gains on fixed maturity securities, AFS $ 3,494 $ 8,577 $ 8,265 $ 10,124 Gross realized losses on fixed maturity securities, AFS (2,864) (4,567) (6,766) (6,593) Decrease (increase) in allowance for expected credit losses on fixed maturity securities, AFS 5,090 9,002 (7,137) (2,637) Net realized gains on fixed maturity securities, trading 11,275 41,556 29,039 57,380 Net realized gains on funds held - directly managed 728 1,741 1,252 2,253 Net realized gains on equity investments 1,033 1,886 63 879 Net realized investment losses on investment derivatives (259) — (80) — Net realized gains of the InRe Fund (1) 321,705 — 321,705 — Total net realized gains on sales $ 340,202 $ 58,195 $ 346,341 $ 61,406 Net unrealized gains (losses): Fixed maturity securities, trading $ 40,011 $ 300,948 $ (128,912) $ 44,471 Fixed maturity securities in funds held - directly managed 17,530 60,107 (26,660) 34,805 Equity investments 52,003 39,333 81,964 (52,619) Other Investments (1) 60,500 143,971 139,983 (69,712) Investment derivatives (51) — 84 — Net unrealized gains (losses) of the InRe Fund (1) (104,975) 365,054 (28,368) 320,196 Total net unrealized gains $ 65,018 $ 909,413 $ 38,091 $ 277,141 Net realized and unrealized gains $ 405,220 $ 967,608 $ 384,432 $ 338,547 (1) Effective April 1, 2021, the InRe Fund was consolidated by us. Prior to this, all income or loss from the InRe Fund was determined by the change in net asset value (NAV) of our holdings in the fund, which was included within net realized and unrealized gains (losses) from other investments. Prior period amounts have been reclassified to net unrealized gains (losses) of the InRe Fund to conform to current period presentation. The gross realized gains and losses on AFS investments for the three months ended June 30, 2021 and 2020 included in the table above resulted from sales of $504.3 million and $678.5 million, respectively. The gross realized gains and losses on AFS investments for the six months ended June 30, 2021 and 2020 included in the table above resulted from sales of $1.2 billion and $1.0 billion, respectively. Reconciliation to the Consolidated Statements of Comprehensive Income The following table provides a reconciliation of the gross realized gains and losses and credit recoveries (losses) on our AFS fixed maturity debt securities that arose during the three and six months ended June 30, 2021 within our continuing and discontinued operations and the offsetting reclassification adjustments included within our consolidated statements of comprehensive income: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Included within continuing operations: Gross realized gains on fixed maturity securities, AFS $ 3,494 $ 8,577 $ 8,265 $ 10,124 Gross realized losses on fixed maturity securities, AFS (2,864) (4,567) (6,766) (6,593) Tax effect (101) — (376) — Included within discontinued operations: Gross realized gains on fixed maturity securities, AFS — 269 — 536 Gross realized losses on fixed maturity securities, AFS — (57) — (57) Total reclassification adjustment $ 529 $ 4,222 $ 1,123 $ 4,010 Included within continuing operations: Credit losses on fixed maturity securities, AFS $ 5,090 $ 9,002 $ (7,137) $ (2,637) Tax effect 4 — 206 — Included within discontinued operations: Credit losses on fixed maturity securities, AFS — 1,760 — 187 Total reclassification adjustment $ 5,094 $ 10,762 $ (6,931) $ (2,450) Restricted Assets We utilize trust accounts to collateralize business with our (re)insurance counterparties. We are also required to maintain investments and cash and cash equivalents on deposit with regulatory authorities and Lloyd's to support our (re)insurance operations. The investments and cash and cash equivalents on deposit are available to settle (re)insurance liabilities. Collateral generally takes the form of assets held in trust, letters of credit or funds held. The assets used as collateral are primarily highly rated fixed maturity securities. The carrying value of our restricted assets, including restricted cash of $356.9 million and $472.0 million, as of June 30, 2021 and December 31, 2020, respectively, was as follows: June 30, 2021 December 31, 2020 Collateral in trust for third party agreements $ 5,529,480 $ 4,924,866 Assets on deposit with regulatory authorities 230,361 131,283 Collateral for secured letter of credit facilities 98,561 104,627 Funds at Lloyd's (1) 491,171 260,914 $ 6,349,573 $ 5,421,690 |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE AND HEDGING INSTRUMENTS | 5. DERIVATIVES AND HEDGING INSTRUMENTS Foreign Currency Hedging of Net Investments in Foreign Operations We use foreign currency forward exchange rate contracts in qualifying hedging relationships to hedge the foreign currency exchange rate risk associated with certain of our net investments in foreign operations. As of June 30, 2021 and December 31, 2020, we had foreign currency forward exchange rate contracts in place which we had designated as hedges of our net investments in foreign operations. The following table presents the gross notional amounts and estimated fair values recorded within other assets and liabilities related to our qualifying foreign currency forward exchange rate contracts: June 30, 2021 December 31, 2020 Gross Notional Amount Fair Value Gross Notional Amount Fair Value Assets Liabilities Assets Liabilities Foreign currency forward - AUD $ 64,543 $ 2,165 $ — $ 73,852 $ 13 $ 5,060 Foreign currency forward - EUR 250,592 7,626 — 217,168 205 8,889 Foreign currency forward - GBP 306,376 7,792 2 312,671 951 14,998 Total qualifying hedges $ 621,511 $ 17,583 $ 2 $ 603,691 $ 1,169 $ 28,947 The following table presents the net gains and losses deferred in the cumulative translation adjustment ("CTA") account, which is a component of AOCI, in shareholders' equity, relating to our foreign currency forward exchange rate contracts: Amount of Gains (Losses) Deferred in AOCI Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Foreign currency forward - AUD $ 999 $ (7,435) $ 1,535 $ 1,036 Foreign currency forward - EUR (1,552) (3,111) 7,782 (476) Foreign currency forward - GBP (502) 505 (3,690) 21,317 Net gains (losses) on qualifying derivative hedges $ (1,055) $ (10,041) $ 5,627 $ 21,877 Derivatives Not Designated or Not Qualifying as Net Investments in Hedging Instruments From time to time, we may also utilize foreign currency forward contracts as part of our overall foreign currency risk management strategy or to obtain exposure to a particular financial market, as well as for yield enhancement in non-qualifying hedging relationships. We may also utilize equity call option instruments or other derivatives either to obtain exposure to a particular equity instrument or for yield enhancement in non-qualifying hedging relationships. Foreign Currency Forward Contracts The following table presents the gross notional amounts and estimated fair values recorded within other assets and other liabilities related to our non-qualifying foreign currency forward exchange rate hedging relationships: June 30, 2021 December 31, 2020 Gross Notional Amount Fair Value Gross Notional Amount Fair Value Assets Liabilities Assets Liabilities Foreign currency forward - AUD $ 27,436 $ 2,092 $ 831 $ 28,848 $ 882 $ 2,847 Foreign currency forward - CAD 47,228 1,467 48 64,224 10 1,764 Foreign currency forward - EUR 80,569 — 2,064 43,531 1,782 41 Foreign currency forward - GBP 62,103 938 59 2,731 161 404 Total non-qualifying hedges $ 217,336 $ 4,497 $ 3,002 $ 139,334 $ 2,835 $ 5,056 The following table presents the amounts of the net gains and losses included in earnings related to our non-qualifying foreign currency forward exchange rate contracts: Gains (losses) on non-qualifying-hedges charged to net earnings Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Foreign currency forward - AUD $ 494 $ (2,978) $ 1,333 $ (445) Foreign currency forward - CAD (480) (2,225) (1,289) 2,771 Foreign currency forward - EUR 274 (224) (2,051) 952 Foreign currency forward - GBP 338 924 718 $ 1,500 Net gains (losses) on non-qualifying hedges $ 626 $ (4,503) $ (1,289) $ 4,778 Investments in Call Options on Equities During the three and six months ended June 30, 2020, we recorded unrealized losses of $0 and less than $0.1 million, respectively, in net earnings, on call options on equities which we purchased in 2018 at a cost of $10.0 million and which expired without being exercised during the six months ended June 30, 2020. Forward Interest Rate Swaps In 2019, we entered into a forward interest rate swap, with a notional amount of AUD$120.0 million, to partially mitigate the risk associated with declining interest rates prior to the completion of our business transfer transaction with Munich Reinsurance Company which closed on July 1, 2020. We recorded unrealized gains in net earnings of less than $0.1 million and $0.8 million on the instrument for the three and six months ended June 30, 2020. This forward interest rate swap was terminated on April 7, 2020, for an inception-to-date net realized gain of $0.5 million. Credit Default Swaps, Futures and Currency Forward Contracts From time to time we may also utilize (i) credit default swaps to both hedge and replicate credit exposure, (ii) government bond futures contracts for interest rate management, and (iii) foreign currency forward contracts for currency hedging, to collectively manage credit and duration risk, as well as for yield enhancement on some of our fixed income portfolios. The following tables present the gross notional amounts and estimated fair values recorded within other assets and other liabilities related to our credit default swaps, government bond futures contracts and currency forward contracts: June 30, 2021 December 31, 2020 Gross Notional Amount Fair Value Gross Notional Amount Fair Value Assets Liabilities Assets Liabilities Futures contracts - long positions $ 14,699 $ 56 $ 7 $ 34,502 $ 32 $ 5 Futures contracts - short positions (14,225) 1 54 (32,316) 6 121 Currency forward contracts - long positions - USD 394 10 — 1,428 — 13 Currency forward contracts - short positions - USD (432) — 12 (3,233) 60 — Currency forward contracts - long positions - GBP 7,432 7 — 1,278 19 — Currency forward contracts - short positions - GBP (13,811) — 54 (4,418) 12 — Total $ (5,943) $ 74 $ 127 $ (2,759) $ 129 $ 139 The following table presents the amounts of the net gains (losses) included in earnings related to our credit default swaps, government bond futures contracts and currency forward contracts: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Credit default swaps $ (77) — $ (77) — Futures contracts (230) (37) 83 (37) Currency forward contracts (631) 166 (1,351) 166 Total net losses $ (938) 129 $ (1,345) 129 |
Reinsurance Balances Recoverabl
Reinsurance Balances Recoverable on Paid and Unpaid Losses | 6 Months Ended |
Jun. 30, 2021 | |
Insurance [Abstract] | |
REINSURANCE BALANCES RECOVERABLE ON PAID AND UNPAID LOSSES | $1 million 619,145 55,083 (47,772) 626,456 31.7 % Other reinsurers < $1 million 22,978 609 — 23,587 1.2 % Total $ 1,947,829 $ 76,670 $ (47,772) $ 1,976,727 100.0 % December 31, 2020 Run-off Legacy Underwriting Corporate & Other Total % of Top 10 reinsurers $ 1,036,676 $ 327,917 $ — $ 1,364,593 65.3 % Other reinsurers > $1 million 574,869 159,513 (36,780) 697,602 33.4 % Other reinsurers < $1 million 23,765 3,203 — 26,968 1.3 % Total $ 1,635,310 $ 490,633 $ (36,780) $ 2,089,163 100.0 % June 30, 2021 December 31, 2020 Information regarding top ten reinsurers: Number of top 10 reinsurers rated A- or better 7 7 Number of top 10 non-rated reinsurers (1) 3 3 Reinsurers rated A- or better in top 10 $ 803,312 $ 863,819 Non-rated reinsurers in top 10 (1) 523,372 500,774 Total top 10 reinsurance recoverables $ 1,326,684 $ 1,364,593 Single reinsurers that represent 10% or more of total reinsurance balance recoverables as of June 30, 2021 and December 31, 2020: Lloyd's Syndicates (2) $ 327,940 $ 331,118 Michigan Catastrophic Claims Association (3) $ 227,279 $ 229,374 Enhanzed Re (4) $ 226,003 $ — (1) The reinsurance balances recoverable from the three non-rated top 10 reinsurers was comprised of: • $227.3 million and $229.4 million as of June 30, 2021 and December 31, 2020 respectively, due from Michigan Catastrophic Claims Association; • $70.1 million and $73.8 million as of June 30, 2021 and December 31, 2020 respectively, due from a reinsurer who has provided us with security in the form of pledged assets i n trust for the full amount of the recoverable balance; and • $226.0 million and $208.4 million as of June 30, 2021 and December 31, 2020 respectively, due from Enhanzed Re, an equity method investee to whom some of our subsidiaries have retroceded their exposures through quota share reinsurance agreements as discussed in Note 20 - "Related Party Transactions." These quota share reinsurance agreements are written on a funds withheld basis. (2) Lloyd's Syndicates are rated A+ by Standard & Poor's and A by A.M. Best. (3) U.S. state backed reinsurer that is supported by assessments on active auto writers operating within the state. (4) Enhanzed Re, an equity method investee, is a Bermuda based Class 4 and Class E reinsurer as discussed in Note 20 - "Related Party Transactions." Allowance for Estimated Uncollectible Reinsurance Balances Recoverable on Paid and Unpaid Losses We evaluate and monitor the credit risk related to our reinsurers, and an allowance for estimated uncollectible reinsurance balances recoverable on paid and unpaid losses ("allowance for estimated uncollectible reinsurance") is established for amounts considered potentially uncollectible. The following tables show our gross and net balances recoverable from our reinsurers as well as the related allowance for estimated uncollectible reinsurance broken down by the credit ratings of our reinsurers. The majority of the allowance for estimated uncollectible reinsurance relates to the Run-off segment. June 30, 2021 Gross Allowance for estimated uncollectible reinsurance Net Provisions as a Reinsurers rated A- or above $ 1,385,215 $ 61,010 $ 1,324,205 4.4 % Reinsurers rated below A-, secured 599,123 — 599,123 — % Reinsurers rated below A-, unsecured 132,877 79,478 53,399 59.8 % Total $ 2,117,215 $ 140,488 $ 1,976,727 6.6 % December 31, 2020 Gross Allowance for estimated uncollectible reinsurance Net Provisions as a Reinsurers rated A- or above $ 1,464,529 $ 60,801 $ 1,403,728 4.2 % Reinsurers rated below A-, secured 608,999 — 608,999 — % Reinsurers rated below A-, unsecured 152,757 76,321 76,436 50.0 % Total $ 2,226,285 $ 137,122 $ 2,089,163 6.2 % The table below provides a reconciliation of the beginning and ending allowance for estimated uncollectible reinsurance balances for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Allowance for estimated uncollectible reinsurance, beginning of period $ 138,765 $ 143,327 $ 137,122 $ 147,639 Cumulative effect of change in accounting principle on allowance for estimated uncollectible reinsurance (1) — — — (195) Effect of exchange rate movement 2 (1,446) 160 (1,446) Current period change in the allowance 1,721 2,584 3,738 (1,533) Write-offs charged against the allowance — (600) — (600) Recoveries collected — (212) (532) (212) Allowance for estimated uncollectible reinsurance, end of period $ 140,488 $ 143,653 $ 140,488 $ 143,653 (1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. 12. PREMIUMS WRITTEN AND EARNED The following table provides a summary of premiums written and earned by segment: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Premiums Premiums Premiums Premiums Premiums Written Premiums Earned Premiums Written Premiums Earned Run-off Gross $ 8,001 $ 61,564 $ (2,155) $ 14,395 $ 30,184 $ 155,770 $ (1,828) $ 32,473 Ceded 2,160 (19,160) (1,048) (3,878) (15,525) (40,530) 801 (5,926) Net $ 10,161 $ 42,404 $ (3,203) $ 10,517 $ 14,659 $ 115,240 $ (1,027) $ 26,547 Legacy Underwriting Gross $ 13,515 $ 38,060 $ 141,547 $ 167,235 $ 41,089 $ 86,119 $ 350,981 $ 344,278 Ceded (6,501) (20,820) (17,568) (34,881) (22,608) (48,839) (74,719) (68,603) Net $ 7,014 $ 17,240 $ 123,979 $ 132,354 $ 18,481 $ 37,280 $ 276,262 $ 275,675 Total Gross $ 21,516 $ 99,624 $ 139,392 $ 181,630 $ 71,273 $ 241,889 $ 349,153 $ 376,751 Ceded (4,341) (39,980) (18,616) (38,759) (38,133) (89,369) (73,918) (74,529) Total $ 17,175 $ 59,644 $ 120,776 $ 142,871 $ 33,140 $ 152,520 $ 275,235 $ 302,222 Gross premiums written for the three and six months ended June 30, 2021 decreased by $117.9 million and $277.9 million, respectively, primarily due to StarStone International being placed into an orderly run-off in the second quarter of 2020 and the sale of Atrium in the first quarter of 2021. Refer to Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations" for further information." id="sjs-B4">6. REINSURANCE BALANCES RECOVERABLE ON PAID AND UNPAID LOSSES The following tables provide the total reinsurance balances recoverable on paid and unpaid losses: June 30, 2021 Run-off (1) Legacy Underwriting (1) Corporate & Other Total Recoverable from reinsurers on unpaid: Outstanding losses $ 1,179,211 $ 25,872 $ — $ 1,205,083 IBNR 563,115 49,444 — 612,559 ULAE 16,901 954 — 17,855 Fair value adjustments - acquired companies — — (14,165) (14,165) Fair value adjustments - fair value option — — (33,607) (33,607) Total reinsurance reserves recoverable 1,759,227 76,270 (47,772) 1,787,725 Paid losses recoverable 188,602 400 — 189,002 Total $ 1,947,829 $ 76,670 $ (47,772) $ 1,976,727 Reconciliation to Condensed Consolidated Balance Sheet: Reinsurance balances recoverable on paid and unpaid losses $ 1,421,879 $ 76,670 $ (14,165) $ 1,484,384 Reinsurance balances recoverable on paid and unpaid losses - fair value option 525,950 — (33,607) 492,343 Total $ 1,947,829 $ 76,670 $ (47,772) $ 1,976,727 (1) Effective January 1, 2021, the net loss reserves of StarStone International were transferred from the Legacy Underwriting segment to the Run-off segment. Refer to Note 22 - "Segment Information" for further details. December 31, 2020 Run-off Legacy Underwriting Corporate & Other Total Recoverable from reinsurers on unpaid: Outstanding losses $ 938,231 $ 263,638 $ — $ 1,201,869 IBNR 508,082 139,761 — 647,843 ULAE 16,688 — — 16,688 Fair value adjustments - acquired companies — — (15,353) (15,353) Fair value adjustments - fair value option — — (21,427) (21,427) Total reinsurance reserves recoverable 1,463,001 403,399 (36,780) 1,829,620 Paid losses recoverable 172,309 87,234 — 259,543 Total $ 1,635,310 $ 490,633 $ (36,780) $ 2,089,163 Reconciliation to Condensed Consolidated Balance Sheet: Reinsurance balances recoverable on paid and unpaid losses $ 1,093,053 $ 490,633 $ (15,353) $ 1,568,333 Reinsurance balances recoverable on paid and unpaid losses - fair value option 542,257 — (21,427) 520,830 Total $ 1,635,310 $ 490,633 $ (36,780) $ 2,089,163 Our (re)insurance Run-off subsidiaries and assumed portfolios, prior to acquisition, used retrocessional agreements to reduce their exposure to the risk of (re)insurance assumed. On an annual basis, StarStone International, included within the Run-off segment from January 1, 2021, purchased a tailored outwards reinsurance program designed to manage its risk profile. The majority of StarStone International's third-party reinsurance is with highly rated reinsurers or is collateralized by pledged assets or letters of credit. The fair value adjustments, determined on acquisition of (re)insurance subsidiaries, are based on the estimated timing of loss and LAE recoveries included in the Run-off segment and an assumed interest rate equivalent to a risk free rate for securities with similar duration to the acquired reinsurance balances recoverable on paid and unpaid losses plus a spread for credit risk, and are amortized over the estimated recovery period, as adjusted for accelerations in timing of payments as a result of commutation settlements. The determination of the As of June 30, 2021 and December 31, 2020, we had reinsurance balances recoverable on paid and unpaid losses of $2.0 billion and $2.1 billion, respectively. The decrease of $112.4 million was primarily due to cash collection s, partially offset by assumed ceded assets relating to CNA, Syndicate 609 and the Liberty Mutual retrocession to Enhanzed Re a Top Ten Reinsurers June 30, 2021 Run-off Legacy Underwriting Corporate & Other Total % of Top 10 reinsurers $ 1,305,706 $ 20,978 $ — $ 1,326,684 67.1 % Other reinsurers > $1 million 619,145 55,083 (47,772) 626,456 31.7 % Other reinsurers < $1 million 22,978 609 — 23,587 1.2 % Total $ 1,947,829 $ 76,670 $ (47,772) $ 1,976,727 100.0 % December 31, 2020 Run-off Legacy Underwriting Corporate & Other Total % of Top 10 reinsurers $ 1,036,676 $ 327,917 $ — $ 1,364,593 65.3 % Other reinsurers > $1 million 574,869 159,513 (36,780) 697,602 33.4 % Other reinsurers < $1 million 23,765 3,203 — 26,968 1.3 % Total $ 1,635,310 $ 490,633 $ (36,780) $ 2,089,163 100.0 % June 30, 2021 December 31, 2020 Information regarding top ten reinsurers: Number of top 10 reinsurers rated A- or better 7 7 Number of top 10 non-rated reinsurers (1) 3 3 Reinsurers rated A- or better in top 10 $ 803,312 $ 863,819 Non-rated reinsurers in top 10 (1) 523,372 500,774 Total top 10 reinsurance recoverables $ 1,326,684 $ 1,364,593 Single reinsurers that represent 10% or more of total reinsurance balance recoverables as of June 30, 2021 and December 31, 2020: Lloyd's Syndicates (2) $ 327,940 $ 331,118 Michigan Catastrophic Claims Association (3) $ 227,279 $ 229,374 Enhanzed Re (4) $ 226,003 $ — (1) The reinsurance balances recoverable from the three non-rated top 10 reinsurers was comprised of: • $227.3 million and $229.4 million as of June 30, 2021 and December 31, 2020 respectively, due from Michigan Catastrophic Claims Association; • $70.1 million and $73.8 million as of June 30, 2021 and December 31, 2020 respectively, due from a reinsurer who has provided us with security in the form of pledged assets i n trust for the full amount of the recoverable balance; and • $226.0 million and $208.4 million as of June 30, 2021 and December 31, 2020 respectively, due from Enhanzed Re, an equity method investee to whom some of our subsidiaries have retroceded their exposures through quota share reinsurance agreements as discussed in Note 20 - "Related Party Transactions." These quota share reinsurance agreements are written on a funds withheld basis. (2) Lloyd's Syndicates are rated A+ by Standard & Poor's and A by A.M. Best. (3) U.S. state backed reinsurer that is supported by assessments on active auto writers operating within the state. (4) Enhanzed Re, an equity method investee, is a Bermuda based Class 4 and Class E reinsurer as discussed in Note 20 - "Related Party Transactions." Allowance for Estimated Uncollectible Reinsurance Balances Recoverable on Paid and Unpaid Losses We evaluate and monitor the credit risk related to our reinsurers, and an allowance for estimated uncollectible reinsurance balances recoverable on paid and unpaid losses ("allowance for estimated uncollectible reinsurance") is established for amounts considered potentially uncollectible. The following tables show our gross and net balances recoverable from our reinsurers as well as the related allowance for estimated uncollectible reinsurance broken down by the credit ratings of our reinsurers. The majority of the allowance for estimated uncollectible reinsurance relates to the Run-off segment. June 30, 2021 Gross Allowance for estimated uncollectible reinsurance Net Provisions as a Reinsurers rated A- or above $ 1,385,215 $ 61,010 $ 1,324,205 4.4 % Reinsurers rated below A-, secured 599,123 — 599,123 — % Reinsurers rated below A-, unsecured 132,877 79,478 53,399 59.8 % Total $ 2,117,215 $ 140,488 $ 1,976,727 6.6 % December 31, 2020 Gross Allowance for estimated uncollectible reinsurance Net Provisions as a Reinsurers rated A- or above $ 1,464,529 $ 60,801 $ 1,403,728 4.2 % Reinsurers rated below A-, secured 608,999 — 608,999 — % Reinsurers rated below A-, unsecured 152,757 76,321 76,436 50.0 % Total $ 2,226,285 $ 137,122 $ 2,089,163 6.2 % The table below provides a reconciliation of the beginning and ending allowance for estimated uncollectible reinsurance balances for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Allowance for estimated uncollectible reinsurance, beginning of period $ 138,765 $ 143,327 $ 137,122 $ 147,639 Cumulative effect of change in accounting principle on allowance for estimated uncollectible reinsurance (1) — — — (195) Effect of exchange rate movement 2 (1,446) 160 (1,446) Current period change in the allowance 1,721 2,584 3,738 (1,533) Write-offs charged against the allowance — (600) — (600) Recoveries collected — (212) (532) (212) Allowance for estimated uncollectible reinsurance, end of period $ 140,488 $ 143,653 $ 140,488 $ 143,653 (1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. 12. PREMIUMS WRITTEN AND EARNED The following table provides a summary of premiums written and earned by segment: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Premiums Premiums Premiums Premiums Premiums Written Premiums Earned Premiums Written Premiums Earned Run-off Gross $ 8,001 $ 61,564 $ (2,155) $ 14,395 $ 30,184 $ 155,770 $ (1,828) $ 32,473 Ceded 2,160 (19,160) (1,048) (3,878) (15,525) (40,530) 801 (5,926) Net $ 10,161 $ 42,404 $ (3,203) $ 10,517 $ 14,659 $ 115,240 $ (1,027) $ 26,547 Legacy Underwriting Gross $ 13,515 $ 38,060 $ 141,547 $ 167,235 $ 41,089 $ 86,119 $ 350,981 $ 344,278 Ceded (6,501) (20,820) (17,568) (34,881) (22,608) (48,839) (74,719) (68,603) Net $ 7,014 $ 17,240 $ 123,979 $ 132,354 $ 18,481 $ 37,280 $ 276,262 $ 275,675 Total Gross $ 21,516 $ 99,624 $ 139,392 $ 181,630 $ 71,273 $ 241,889 $ 349,153 $ 376,751 Ceded (4,341) (39,980) (18,616) (38,759) (38,133) (89,369) (73,918) (74,529) Total $ 17,175 $ 59,644 $ 120,776 $ 142,871 $ 33,140 $ 152,520 $ 275,235 $ 302,222 Gross premiums written for the three and six months ended June 30, 2021 decreased by $117.9 million and $277.9 million, respectively, primarily due to StarStone International being placed into an orderly run-off in the second quarter of 2020 and the sale of Atrium in the first quarter of 2021. Refer to Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations" for further information. |
Deferred Charge Assets and Defe
Deferred Charge Assets and Deferred Gain Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Insurance [Abstract] | |
DEFERRED CHARGE ASSETS AND DEFERRED GAIN LIABILITIES | 7. DEFERRED CHARGE ASSETS AND DEFERRED GAIN LIABILITIES For (re)insurance contracts for which we do not elect the fair value option, a deferred charge asset is recorded for the excess, if any, of the estimated ultimate losses payable over the premiums received at the initial measurement period; whereas, a deferred gain liability is recorded for the excess, if any, of the premiums received over the estimated ultimate losses payable at the initial measurement period. In addition, for retrocessions of losses and LAE reserves that we have assumed through retroactive reinsurance contracts where the retroceded liabilities exceed the retrocession premiums paid, we record the excess as a deferred gain liability which is amortized to earnings over the estimated period during which the losses paid on the assumed retroceded liabilities are recovered from the retrocessionaire. We present the change in deferred charges assets and deferred gain liabilities within corporate and other activities. Deferred Charge Assets Deferred charge assets are included in other assets on our condensed consolidated balance sheets. The following table presents a reconciliation of the deferred charge assets: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Beginning carrying value $ 360,785 $ 257,832 $ 238,602 $ 272,462 Recorded during the period 98,131 11,746 229,012 11,746 Amortization (23,765) (11,062) (32,463) (25,692) Ending carrying value $ 435,151 $ 258,516 $ 435,151 $ 258,516 Deferred charge assets are assessed at each reporting period for impairment. If the asset is determined to be impaired, it is written down in the period of determination. For the six months ended June 30, 2021, we completed our impairment assessment and concluded that there had been no impairment of our carried deferred charge assets. Deferred Gain Liabilities Deferred gain liabilities are included in other liabilities on our consolidated balance sheets. The following table presents a reconciliation of the deferred gain liabilities: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Beginning carrying value $ 19,251 $ 12,578 $ 19,880 $ 12,875 Recorded during the period 1,562 — 1,562 — Amortization (754) (662) (1,383) (959) Ending carrying value $ 20,059 $ 11,916 $ 20,059 $ 11,916 |
Losses and Loss Adjustment Expe
Losses and Loss Adjustment Expenses | 6 Months Ended |
Jun. 30, 2021 | |
Insurance [Abstract] | |
LOSSES AND LOSS ADJUSTMENT EXPENSES | 8. LOSSES AND LOSS ADJUSTMENT EXPENSES The liability for losses and loss adjustment expenses ("LAE"), also referred to as loss reserves, represents our gross estimates before reinsurance for unpaid reported losses and includes losses that have been incurred but not reported ("IBNR") using a variety of actuarial methods. We recognize an asset for the portion of the liability that we expect to recover from reinsurers. LAE reserves include allocated loss adjustment expenses ("ALAE"), and unallocated loss adjustment expenses ("ULAE"). ALAE are linked to the settlement of an individual claim or loss, whereas ULAE are based on our estimates of future costs to administer the claims. IBNR represents reserves for loss and LAE that have been incurred but not yet reported to us. This includes amounts for unreported claims, development on known claims and reopened claims. Our loss reserves cover multiple lines of business, which include asbestos, environmental, general casualty, workers' compensation/personal accident, marine, aviation and transit, construction defect, professional indemnity/directors and officers, motor, property and other non-life lines of business. The following tables summarize the liability for losses and LAE by segment and for our corporate and other activities: June 30, 2021 Run-off Legacy Underwriting Corporate & Other Total Outstanding losses $ 5,604,831 $ 94,652 $ — $ 5,699,483 IBNR 7,022,204 143,890 — 7,166,094 ULAE 428,626 2,369 — 430,995 Fair value adjustments - acquired companies — — (133,853) (133,853) Fair value adjustments - fair value option — — (124,861) (124,861) Total $ 13,055,661 $ 240,911 $ (258,714) $ 13,037,858 Reconciliation to Condensed Consolidated Balance Sheet: Loss and loss adjustment expenses $ 10,696,695 $ 240,911 $ (133,853) $ 10,803,753 Loss and loss adjustment expenses, at fair value 2,358,966 — (124,861) 2,234,105 Total $ 13,055,661 $ 240,911 $ (258,714) $ 13,037,858 December 31, 2020 Run-off Legacy Underwriting Corporate & Other Total Outstanding losses $ 4,440,425 $ 687,424 $ — $ 5,127,849 IBNR 4,641,500 636,003 — 5,277,503 ULAE 350,600 35,102 — 385,702 Fair value adjustments - acquired companies — — (143,183) (143,183) Fair value adjustments - fair value option — — (54,589) (54,589) Total $ 9,432,525 $ 1,358,529 $ (197,772) $ 10,593,282 Reconciliation to Condensed Consolidated Balance Sheet: Loss and loss adjustment expenses $ 6,925,016 $ 1,358,529 $ (143,183) $ 8,140,362 Loss and loss adjustment expenses, at fair value 2,507,509 — (54,589) 2,452,920 Total $ 9,432,525 $ 1,358,529 $ (197,772) $ 10,593,282 The table below provides a consolidated reconciliation of the beginning and ending liability for losses and LAE: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Balance as of beginning of period $ 11,427,420 $ 9,836,797 $ 10,593,282 $ 9,868,404 Add: losses and LAE relating to SGL No.1 (1) — — 254,561 — 11,427,420 9,836,797 10,847,843 9,868,404 Less: Reinsurance reserves recoverable (2) 1,869,535 1,902,749 1,829,620 1,927,624 Reinsurance reserves recoverable relating to SGL No1 (1) — — 90,792 — 1,869,535 1,902,749 1,920,412 1,927,624 Less: net deferred charge assets and deferred gain liabilities on retroactive reinsurance 341,534 245,254 218,722 259,587 Less: cumulative effect of change in accounting principle on the determination of the allowance for estimated uncollectible reinsurance balances (3) — — — 643 Net balance as of beginning of period 9,216,351 7,688,794 8,708,709 7,680,550 Net incurred losses and LAE: Current period 49,165 119,613 103,225 235,118 Prior periods (9,861) 67,079 (119,428) (5,126) Total net incurred losses and LAE 39,304 186,692 (16,203) 229,992 Net paid losses: Current period (5,892) (11,303) (12,394) (15,110) Prior periods (354,667) (369,984) (690,697) (726,003) Total net paid losses (360,559) (381,287) (703,091) (741,113) Effect of exchange rate movement 2,510 40,153 (6,261) (106,227) Assumed business (4) 1,965,559 954,323 2,880,011 1,425,473 Ceded business (28,124) — (28,124) — Net balance as of June 30 10,835,041 8,488,675 10,835,041 8,488,675 Plus: reinsurance reserves recoverable (2) 1,787,725 1,858,161 1,787,725 1,858,161 Plus: net deferred charge assets and deferred gain liabilities on retroactive reinsurance (5) 415,092 246,600 415,092 246,600 Balance as of June 30 $ 13,037,858 $ 10,593,436 $ 13,037,858 $ 10,593,436 (1) This balance represents the gross up for our participation in Atrium's Syndicate 609 relating to the 2020 and prior underwriting years which is no longer eliminated on our condensed consolidated financial statements following the completion of the Exchange Transaction on January 1, 2021. Gross losses and LAE exclude $0.4 million of fair value adjustments that were a component of the losses and LAE balance included on the held-for-sale balance sheet and which were derecognized following the completion of the Exchange Transaction. Refer to Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations" for further details. (2) Net of allowance for estimated uncollectible reinsurance. (3) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. (4) Refer to Note 2 - "Significant New Business" for further information. (5) Refer to Note 7 - "Deferred Charge Assets and Deferred Gain Liabilities" for further information. The tables below provide the components of net incurred losses and LAE by segment and for our corporate and other activities: Three Months Ended June 30, 2021 Run-off Legacy Underwriting Corporate & Other Total Net losses paid $ 357,194 $ 3,365 $ — $ 360,559 Net change in case and LAE reserves (1) (122,747) 5,264 — (117,483) Net change in IBNR reserves (2) (235,698) 1,899 — (233,799) Increase (reduction) in estimates of net ultimate losses (1,251) 10,528 — 9,277 Increase (reduction) in provisions for unallocated LAE (3) (15,746) (247) — (15,993) Amortization of deferred charge assets and deferred gain liabilities (4) — — 23,011 23,011 Amortization of fair value adjustments (5) — — 5,296 5,296 Changes in fair value - fair value option (6) — — 17,713 17,713 Net incurred losses and LAE $ (16,997) $ 10,281 $ 46,020 $ 39,304 Three Months Ended June 30, 2020 Run-off Legacy Underwriting Corporate & Other Total Net losses paid $ 283,402 $ 97,885 $ — $ 381,287 Net change in case and LAE reserves (1) (76,106) (29,359) — (105,465) Net change in IBNR reserves (2) (255,120) (1,029) — (256,149) Increase (reduction) in estimates of net ultimate losses (47,824) 67,497 — 19,673 Increase (reduction) in provisions for unallocated LAE (3) (12,425) 27,885 — 15,460 Amortization of deferred charge assets and deferred gain liabilities (4) — — 10,400 10,400 Amortization of fair value adjustments (5) — — 7,116 7,116 Changes in fair value - fair value option (6) — — 134,043 134,043 Net incurred losses and LAE $ (60,249) $ 95,382 $ 151,559 $ 186,692 Six Months Ended June 30, 2021 Run-off Legacy Underwriting Corporate & Other Total Net losses paid $ 687,823 $ 15,268 $ — $ 703,091 Net change in case and LAE reserves (1) (242,110) (2,507) — (244,617) Net change in IBNR reserves (2) (429,641) 2,688 — (426,953) Increase (reduction) in estimates of net ultimate losses 16,072 15,449 — 31,521 Increase (reduction) in provisions for unallocated LAE (3) (28,444) (690) — (29,134) Amortization of deferred charge assets and deferred gain liabilities (4) — — 31,080 31,080 Amortization of fair value adjustments (5) — — 8,089 8,089 Changes in fair value - fair value option (6) — — (57,759) (57,759) Net incurred losses and LAE $ (12,372) $ 14,759 $ (18,590) $ (16,203) Six Months Ended June 30, 2020 Run-off Legacy Underwriting Corporate & Other Total Net losses paid $ 542,368 $ 198,745 $ — $ 741,113 Net change in case and LAE reserves (1) (250,686) (64,547) — (315,233) Net change in IBNR reserves (2) (359,220) 38,220 — (321,000) Increase (reduction) in estimates of net ultimate losses (67,538) 172,418 — 104,880 Increase (reduction) in provisions for unallocated LAE (3) (19,904) 28,495 — 8,591 Amortization of deferred charge assets and deferred gain liabilities (4) — — 24,733 24,733 Amortization of fair value adjustments (5) — — 15,982 15,982 Changes in fair value - fair value option (6) — — 75,806 75,806 Net incurred losses and LAE $ (87,442) $ 200,913 $ 116,521 $ 229,992 (1) Comprises the movement during the year in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys, less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims. (2) Represents the gross change in our actuarial estimates of IBNR, less amounts recoverable. (3) Represents the change in the estimate of the total future costs to administer the claims. (4) Relates to the amortization of deferred charge assets and deferred gain liabilities on retroactive reinsurance contracts. (5) Relates to the amortization of fair value adjustments associated with the acquisition of companies. (6) Represents the changes in the fair value of liabilities related to our assumed retroactive reinsurance contracts for which we have elected the fair value option. Run-off Segment The table below provides a reconciliation of the beginning and ending liability for losses and LAE for the Run-off segment: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Balance as of beginning of period $ 11,467,367 $ 8,652,532 $ 9,432,525 $ 8,683,983 Less: reinsurance reserves recoverable (1) 1,835,796 1,568,296 1,463,001 1,645,352 Plus: cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance (2) — — — 703 Net balance as of beginning of period 9,631,571 7,084,236 7,969,524 7,039,334 Net incurred losses and LAE: Current period 41,409 8,086 85,570 15,935 Prior periods (58,406) (68,335) (97,942) (103,377) Total net incurred losses and LAE (16,997) (60,249) (12,372) (87,442) Net paid losses: Current period 519 202 (2,756) (1,038) Prior periods (357,713) (283,604) (685,067) (541,330) Total net paid losses (357,194) (283,402) (687,823) (542,368) Effect of exchange rate movement 5,050 30,606 (7,362) (109,483) Assumed business (3) 2,063,690 966,069 3,109,023 1,437,219 Ceded business (29,686) — (29,686) — Transfer from the Legacy Underwriting segment (4) — — 955,130 — Net balance as of June 30 11,296,434 7,737,260 11,296,434 7,737,260 Plus: reinsurance reserves recoverable (1) 1,759,227 1,494,652 1,759,227 1,494,652 Balance as of June 30 $ 13,055,661 $ 9,231,912 $ 13,055,661 $ 9,231,912 (1) Net of allowance for estimated uncollectible reinsurance. (2) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. (3) Refer to Note 2 - "Significant New Business" for further information. (4) Effective January 1, 2021, the net loss reserves of StarStone International were transferred from the Legacy Underwriting segment to the Run-off segment. Refer to Note 22 - "Segment Information" for further details. Net incurred losses and LAE in the Run-off segment were as follows: Three Months Ended June 30, 2021 2020 Prior Current Total Prior Current Total Net losses paid $ 357,713 $ (519) $ 357,194 $ 283,604 $ (202) $ 283,402 Net change in case and LAE reserves (1) (129,991) 7,244 (122,747) (75,276) (830) (76,106) Net change in IBNR reserves (2) (269,418) 33,720 (235,698) (264,238) 9,118 (255,120) Increase (reduction) in estimates of net ultimate losses (41,696) 40,445 (1,251) (55,910) 8,086 (47,824) Increase (reduction) in provisions for unallocated LAE (3) (16,710) 964 (15,746) (12,425) — (12,425) Net incurred losses and LAE $ (58,406) $ 41,409 $ (16,997) $ (68,335) $ 8,086 $ (60,249) (1) Comprises the movement during the year in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys, less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims. (2) Represents the gross change in our actuarial estimates of IBNR, less amounts recoverable. (3) Represents the change in the estimate of the total future costs to administer the claims. Three Months Ended June 30, 2021 Current period net incurred losses and LAE of $41.4 million primarily relates to the run-off of StarStone International business which was transferred from the Legacy Underwriting segment on January 1, 2021. The reduction in estimates of net ultimate losses relating to prior periods of $41.7 million was primarily related to favorable development in our professional indemnity/directors & officers line of business across our Lloyd's portfolios arising from a change in ultimates and reductions in case reserve estimates for large claims, continued favorable actual experience versus expected losses in our workers' compensation and general casualty lines of business as well as favorable actual experience versus expected losses across multiple StarStone International books of business. Partially offsetting this favorable development was an increase in net incurred losses of $21.6 million due to our reevaluation of our gross and net exposure on COVID-19 pandemic related losses. Three Months Ended June 30, 2020 Current period net incurred losses and LAE of $8.1 million related to current period net earned premium, primarily in respect of the run-off of the AmTrust RITC transactions. The reduction in estimates of net ultimate losses relating to prior periods of $55.9 million primarily related to favorable development in our professional indemnity/directors & officers lines of businesses and favorable actual versus expected development in our workers' compensation and motor liability lines of business. Six Months Ended June 30, 2021 2020 Prior Current Total Prior Current Total Net losses paid $ 685,067 $ 2,756 $ 687,823 $ 541,330 $ 1,038 $ 542,368 Net change in case and LAE reserves (1) (247,147) 5,037 (242,110) (251,528) 842 (250,686) Net change in IBNR reserves (2) (504,983) 75,342 (429,641) (373,275) 14,055 (359,220) Increase (reduction) in estimates of net ultimate losses (67,063) 83,135 16,072 (83,473) 15,935 (67,538) Increase (reduction) in provisions for unallocated LAE (3) (30,879) 2,435 (28,444) (19,904) — (19,904) Net incurred losses and LAE $ (97,942) $ 85,570 $ (12,372) $ (103,377) $ 15,935 $ (87,442) (1) Comprises the movement during the year in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys, less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims. (2) Represents the gross change in our actuarial estimates of IBNR, less amounts recoverable. (3) Represents the change in the estimate of the total future costs to administer the claims. Six Months Ended June 30, 2021 Current period net incurred losses and LAE of $85.6 million related to current period net earned premium, primarily in respect of the run-off of StarStone International business which was transferred from the Legacy Underwriting segment on January 1, 2021. The reduction in estimates of net ultimate losses relating to prior periods of $67.1 million was primarily related to favorable development in our professional indemnity/directors & officers line of business across our Lloyd's portfolios arising from a change in ultimates and reductions in case reserve estimates for large claims, continued favorable actual experience versus expected losses in our workers' compensation and general casualty lines of business as well as favorable actual experience versus expected losses across multiple StarStone International books of business. Partially offsetting this favorable development was an increase in net incurred losses of $22.0 million due to our reevaluation of our gross and net exposure on COVID-19 pandemic related losses. Six Months Ended June 30, 2020 Current period net incurred losses and LAE of $15.9 million related to current period net earned premium, primarily in respect of the run-off of the AmTrust RITC transactions. The reduction in estimates of net ultimate losses relating to prior periods of $83.5 million primarily related to favorable development in our professional indemnity/directors & officers lines of businesses and favorable actual versus expected development in our workers compensation and motor liability lines of business. Legacy Underwriting Segment The table below provides a reconciliation of the beginning and ending liability for losses and LAE for our Legacy Underwriting segment: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Balance as of beginning of period $ 249,096 $ 1,616,527 $ 1,358,529 $ 1,569,865 Add: losses and LAE relating to SGL No.1 (1) — — 254,561 — 249,096 1,616,527 1,613,090 1,569,865 Less: Reinsurance reserves recoverable (2) 88,957 442,905 403,399 385,613 Reinsurance recoverable relating to SGL No.1 (1) — — 90,792 — 88,957 442,905 494,191 385,613 Less: cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance (3) — — — 1,346 Net balance as of beginning of period 160,139 1,173,622 1,118,899 1,182,906 Net incurred losses and LAE: Current period 7,756 111,527 17,655 219,183 Prior periods 2,525 (16,145) (2,896) (18,270) Total net incurred losses and LAE 10,281 95,382 14,759 200,913 Net paid losses: Current period (6,411) (11,505) (9,638) (14,072) Prior periods 3,046 (86,380) (5,630) (184,673) Total net paid losses (3,365) (97,885) (15,268) (198,745) Effect of exchange rate movement (2,414) 9,990 1,381 (3,965) Transfer to Run-off segment (4) — — (955,130) — Net balance as of June 30 164,641 1,181,109 164,641 1,181,109 Plus: reinsurance reserves recoverable (1) 76,270 429,847 76,270 429,847 Balance as of June 30 $ 240,911 $ 1,610,956 $ 240,911 $ 1,610,956 (1) This balance represents the gross up for our participation in Atrium's Syndicate 609 relating to the 2020 and prior underwriting years which is no longer eliminated on our condensed consolidated financial statements following the completion of the Exchange Transaction on January 1, 2021. Refer to Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations" for further details. (2) Net of allowance for estimated uncollectible reinsurance. (3) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. (4) Effective January 1, 2021, the net loss reserves of StarStone International were transferred from the Legacy Underwriting segment to the Run-off segment. Refer to Note 22 - "Segment Information" for further details. Net incurred losses and LAE in the Legacy Underwriting segment were as follows: Three Months Ended June 30, 2021 2020 Prior Period Current Period Total Prior Period Current Period Total Net losses paid $ (3,046) $ 6,411 $ 3,365 $ 86,380 $ 11,505 $ 97,885 Net change in case and LAE reserves (1) 7,838 (2,574) 5,264 (29,802) 443 (29,359) Net change in IBNR reserves (2) (1,954) 3,853 1,899 (72,997) 71,968 (1,029) Increase (reduction) in estimates of net ultimate losses 2,838 7,690 10,528 (16,419) 83,916 67,497 Increase (reduction) in provisions for unallocated LAE (3) (313) 66 (247) 274 27,611 27,885 Net incurred losses and LAE $ 2,525 $ 7,756 $ 10,281 $ (16,145) $ 111,527 $ 95,382 (1) Comprises the movement during the year in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys, less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims. (2) Represents the gross change in our actuarial estimates of IBNR, less amounts recoverable. (3) Represents the change in the estimate of the total future costs to administer the claims. Three Months Ended June 30, 2021 Current period net incurred losses and LAE of $7.8 million related to current period net earned premium. The increase in net incurred losses and LAE liabilities relating to prior periods was $2.5 million and was attributable to an increase in estimates of net ultimate losses of $2.8 million. Three Months Ended June 30, 2020 Current period net incurred losses and LAE of $111.5 million related to current period net earned premium and included losses related to the COVID-19 pandemic of $1.2 million. The decrease in net incurred losses and LAE liabilities relating to prior periods was $16.1 million and was attributable to an decrease in estimates of net ultimate losses of $16.4 million. Six Months Ended June 30, 2021 2020 Prior Period Current Period Total Prior Period Current Period Total Net losses paid $ 5,630 $ 9,638 $ 15,268 $ 184,673 $ 14,072 $ 198,745 Net change in case and LAE reserves (1) (4,692) 2,185 (2,507) (73,340) 8,793 (64,547) Net change in IBNR reserves (2) (3,304) 5,992 2,688 (129,786) 168,006 38,220 Increase (reduction) in estimates of net ultimate losses (2,366) 17,815 15,449 (18,453) 190,871 172,418 Increase (reduction) in provisions for unallocated LAE (3) (530) (160) (690) 183 28,312 28,495 Net incurred losses and LAE $ (2,896) $ 17,655 $ 14,759 $ (18,270) $ 219,183 $ 200,913 (1) Comprises the movement during the year in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys, less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims. (2) Represents the gross change in our actuarial estimates of IBNR, less amounts recoverable. (3) Represents the change in the estimate of the total future costs to administer the claims. Six Months Ended June 30, 2021 Current period net incurred losses and LAE of $17.7 million related to current period net earned premium. The reduction in net incurred losses and LAE liabilities relating to prior periods was $2.9 million and was attributable to a reduction in estimates of net ultimate losses of $2.4 million. |
Defendant Asbestos and Environm
Defendant Asbestos and Environmental Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Liability for Asbestos and Environmental Claims [Abstract] | |
DEFENDANT ASBESTOS AND ENVIRONMENTAL LIABILITIES | 9. DEFENDANT ASBESTOS AND ENVIRONMENTAL LIABILITIES We acquired DCo LLC ("DCo") on December 30, 2016, and Morse TEC on October 30, 2019. These companies hold liabilities associated with personal injury asbestos claims and environmental claims arising from their legacy manufacturing operations. Defendant asbestos liabilities on our condensed consolidated balance sheets include amounts for loss payments and defense costs for pending and future asbestos-related claims, determined using standard actuarial techniques for asbestos exposures. Defendant environmental liabilities include estimated clean-up costs associated with the acquired companies' former operations based on engineering reports. Insurance balances recoverable on our condensed consolidated balance sheets include estimated insurance recoveries relating to these liabilities. The recorded asset represents our assessment of the capacity of the insurance agreements to indemnify our subsidiaries for the anticipated defense and loss payments for pending claims and projected future claims. The recognition of these recoveries is based on an assessment of the right to recover under the respective contracts and on the financial strength of the insurers. The recorded asset does not represent the limits of our insurance coverage, but rather the amount we would expect to recover if the accrued and projected loss and defense costs were paid in full. Included within insurance balances recoverable and defendant asbestos and environmental liabilities are the fair value adjustments that were initially recognized upon acquisition. These fair value adjustments are amortized in proportion to the actual payout of claims and recoveries. The carrying value of the asbestos and environmental liabilities, insurance recoveries, future estimated expenses and the fair value adjustments related to DCo and Morse TEC were as follows: June 30, 2021 December 31, 2020 Defendant asbestos and environmental liabilities: Defendant asbestos liabilities $ 877,894 $ 913,276 Defendant environmental liabilities 12,074 12,572 Estimated future expenses 39,002 42,510 Fair value adjustments (251,051) (262,029) Defendant asbestos and environmental liabilities 677,919 706,329 Insurance balances recoverable: Insurance recoveries related to defendant asbestos liabilities (net of allowance: 2021 - $5,822; 2020 - $4,824) 305,948 310,602 Fair value adjustments (59,969) (60,950) Insurance balances recoverable 245,979 249,652 Net liabilities relating to defendant asbestos and environmental exposures $ 431,940 $ 456,677 The table below provides a consolidated reconciliation of the beginning and ending liability for defendant asbestos and environmental exposures: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Balance as of beginning of period $ 691,557 $ 822,716 $ 706,329 $ 847,685 Less: Insurance balances recoverable 248,010 435,613 249,652 448,855 Plus: Cumulative effect of change in accounting principle on the determination of the allowance for estimated uncollectible insurance balances (1) — — — 3,167 Net balance as of beginning of period 443,547 387,103 456,677 401,997 Total net paid claims (10,916) (7,495) (17,224) (914) Amounts recorded in other income: Reduction in estimates of ultimate net liabilities (4,450) (1,978) (14,002) (26,893) Reduction in estimated future expenses (745) (975) (3,508) (3,003) Amortization of fair value adjustments 4,504 3,130 9,997 8,598 Total other income (691) 177 (7,513) (21,298) Net balance as at June 30 431,940 379,785 431,940 379,785 Plus: Insurance balances recoverable (2) 245,979 428,277 245,979 428,277 Balance as at June 30 $ 677,919 $ 808,062 $ 677,919 $ 808,062 (1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. Allowance for Estimated Uncollectible Insurance Balances Recoverable on Defendant Asbestos Liabilities We evaluate and monitor the credit risk related to our insurers and an allowance for estimated uncollectible insurance balances recoverable on our defendant asbestos liabilities ("allowance for estimated uncollectible insurance") is established for amounts considered potentially uncollectible. The table below provides a reconciliation of the beginning and ending allowance for estimated uncollectible insurance balances related to our defendant asbestos liabilities. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Allowance for estimated uncollectible insurance balances, beginning of period $ 5,272 $ 6,985 $ 4,824 $ 3,818 Cumulative effect of change in accounting principle — — — 3,167 Current period change in the allowance 550 1,361 998 1,361 Allowance for estimated uncollectible insurance balances, end of period $ 5,822 $ 8,346 $ 5,822 $ 8,346 During the three and six months ended June 30, 2021 and 2020, we did not record any write-offs charged against the allowance for estimated uncollectible insurance or any recoveries of amounts previously written off. We did not have significant non-disputed past due balances receivable from our insurers related to our defendant asbestos liabilities, that were older than one year for any of the periods presented. Any balances that are part of ongoing legal activity are estimated to be recovered at the level of our recorded asset, which is consistent with our legal advice and past collection experience. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 10. FAIR VALUE MEASUREMENTS Fair Value Hierarchy Fair value is defined as the price at which to sell an asset or transfer a liability (i.e. the "exit price") in an orderly transaction between market participants. We use a fair value hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. The hierarchy is broken down into three levels as follows: • Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. • Level 2 - Valuations based on quoted prices in active markets for similar assets or liabilities, quoted prices for identical assets or liabilities in inactive markets, or for which significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. • Level 3 - Valuations based on unobservable inputs where there is little or no market activity. Unadjusted third party pricing sources or management's assumptions and internal valuation models may be used to determine the fair values. In addition, certain of our other investments are measured at fair value using net asset value ("NAV") per share (or its equivalent) as a practical expedient and have not been classified within the fair value hierarchy above. We have categorized our assets and liabilities that are recorded at fair value on a recurring basis among levels based on the observability of inputs, or at fair value using NAV per share (or its equivalent) as follows: June 30, 2021 Quoted Prices in Significant Significant Fair Value Based on NAV as Practical Expedient Total Fair Investments: Short-term and fixed maturity investments: U.S. government and agency $ — $ 789,439 $ — $ — $ 789,439 U.K. government — 41,696 — — 41,696 Other government — 480,279 — — 480,279 Corporate — 6,652,998 — — 6,652,998 Municipal — 244,459 — — 244,459 Residential mortgage-backed — 572,239 — — 572,239 Commercial mortgage-backed — 987,254 — — 987,254 Asset-backed — 935,593 — — 935,593 $ — $ 10,703,957 $ — $ — $ 10,703,957 Other assets included within funds held - directly managed $ — $ 9,247 $ — $ — $ 9,247 Equities: Publicly traded equity investments $ 263,046 $ 41,655 $ — $ — $ 304,701 Exchange-traded funds 504,793 — — — 504,793 Privately held equity investments — — 348,725 — 348,725 $ 767,839 $ 41,655 $ 348,725 $ — $ 1,158,219 Other investments: Hedge funds (1) $ — $ — $ — $ 73,130 $ 73,130 Fixed income funds — 266,889 — 337,000 603,889 Equity funds — 5,617 — — 5,617 Private equity funds — — — 536,368 536,368 CLO equities — 145,103 — — 145,103 CLO equity funds — — — 190,158 190,158 Private credit funds — — — 242,359 242,359 Other — — 314 17,655 17,969 $ — $ 417,609 $ 314 $ 1,396,670 $ 1,814,593 Total Investments $ 767,839 $ 11,172,468 $ 349,039 $ 1,396,670 $ 13,686,016 Cash and cash equivalents $ 414,623 $ 33,005 $ — $ — $ 447,628 Reinsurance balances recoverable on paid and unpaid losses: $ — $ — $ 492,343 $ — $ 492,343 Other Assets: Derivatives qualifying as hedging $ — $ 17,583 $ — $ — $ 17,583 Derivatives not qualifying as hedging — 4,571 — — 4,571 Derivative instruments $ — $ 22,154 $ — $ — $ 22,154 Losses and LAE: $ — $ — $ 2,234,105 $ — $ 2,234,105 Other Liabilities: Derivatives qualifying as hedging $ — $ 2 $ — $ — $ 2 Derivatives not qualifying as hedging — 3,129 — — 3,129 Derivative instruments $ — $ 3,131 $ — $ — $ 3,131 December 31, 2020 Quoted Prices in Significant Significant Fair Value Based on NAV as Practical Expedient Total Fair Investments: Short-term and fixed maturity investments: U.S. government and agency $ — $ 951,048 $ — $ — $ 951,048 U.K government — 51,082 — — 51,082 Other government — 502,153 — — 502,153 Corporate — 5,686,732 — — 5,686,732 Municipal — 162,669 — — 162,669 Residential mortgage-backed — 553,945 — — 553,945 Commercial mortgage-backed — 854,090 — — 854,090 Asset-backed — 557,460 — — 557,460 $ — $ 9,319,179 $ — $ — $ 9,319,179 Other assets included within funds held - directly managed $ — $ 14,627 $ — $ — $ 14,627 Equities: Publicly traded equity investments $ 229,167 $ 31,600 $ — $ — $ 260,767 Exchange-traded funds 311,287 — — — 311,287 Privately held equity investments — — 274,741 — 274,741 $ 540,454 $ 31,600 $ 274,741 $ — $ 846,795 Other investments: Hedge funds (1) $ — $ — $ — $ 2,638,339 $ 2,638,339 Fixed income funds — 285,837 — 266,704 552,541 Equity funds — 5,073 — 185,694 190,767 Private equity funds — — — 363,103 363,103 CLO equities — 128,083 — — 128,083 CLO equity funds — — — 166,523 166,523 Private credit funds — — 9,250 183,069 192,319 Other — — 314 12,045 12,359 $ — $ 418,993 $ 9,564 $ 3,815,477 $ 4,244,034 Total Investments $ 540,454 $ 9,784,399 $ 284,305 $ 3,815,477 $ 14,424,635 Cash and cash equivalents $ 385,790 $ 208,272 $ — $ — $ 594,062 Reinsurance balances recoverable on paid and unpaid losses: $ — $ — $ 520,830 $ — $ 520,830 Other Assets: Derivatives qualifying as hedging $ — $ 1,169 $ — $ — $ 1,169 Derivatives not qualifying as hedging — 2,964 — — 2,964 Derivative instruments $ — $ 4,133 $ — $ — $ 4,133 Losses and LAE: $ — $ — $ 2,452,920 $ — $ 2,452,920 Other Liabilities: Derivatives qualifying as hedging $ — $ 28,947 $ — $ — $ 28,947 Derivatives not qualifying as hedging — 5,195 — — 5,195 Derivative instruments $ — $ 34,142 $ — $ — $ 34,142 (1) Effective April 1, 2021, the InRe Fund was consolidated by us. As a result, the carrying amounts of the assets and liabilities of the InRe Fund are presented separately in “Variable interest entity assets of the InRe Fund” and “Variable interest entity liabilities of the InRe Fund” within the condensed consolidated balance sheet as of June 30, 2021. Refer to Note 11 - "Variable Interest Entities" for additional information. As of December 31, 2020, our investment in the InRe Fund was $2.4 billion. Short-term and Fixed Maturity Investments The fair values for all securities in the short-term and fixed maturity investments and funds held - directly managed portfolios are independently provided by the investment accounting service providers, investment managers and investment custodians, each of which utilize internationally recognized independent pricing services. We record the unadjusted price provided by the investment accounting service providers, investment managers or investment custodians and validate this price through a process that includes, but is not limited to: (i) comparison of prices against alternative pricing sources; (ii) quantitative analysis (e.g. comparing the quarterly return for each managed portfolio to its target benchmark); (iii) evaluation of methodologies used by external parties to estimate fair value, including a review of the inputs used for pricing; and (iv) comparing the price to our knowledge of the current investment market. Our internal price validation procedures and review of fair value methodology documentation provided by independent pricing services have not historically resulted in adjustment in the prices obtained from the pricing service. The independent pricing services used by the investment accounting service providers, investment managers and investment custodians obtain actual transaction prices for securities that have quoted prices in active markets. Where we utilize single unadjusted broker-dealer quotes, they are generally provided by market makers or broker-dealers who are recognized as market participants in the markets for which they are providing the quotes. For determining the fair value of securities that are not actively traded, in general, pricing services use "matrix pricing" in which the independent pricing service uses observable market inputs including, but not limited to, reported trades, benchmark yields, broker-dealer quotes, interest rates, prepayment speeds, default rates and other such inputs as are available from market sources to determine a reasonable fair value. The following describes the techniques generally used to determine the fair value of our short-term and fixed maturity investments by asset class, including the investments underlying the funds held - directly managed. • U.S. government and agency securities consist of securities issued by the U.S. Treasury and mortgage pass-through agencies such as the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and other agencies. Non-U.S. government securities consist of bonds issued by non-U.S. governments and agencies along with supranational organizations. The significant inputs used to determine the fair value of these securities include the spread above the risk-free yield curve, reported trades and broker-dealer quotes. These are considered to be observable market inputs and, therefore, the fair values of these securities are classified as Level 2. • Corporate securities consist primarily of investment-grade debt of a wide variety of corporate issuers and industries. The fair values of these securities are determined using the spread above the risk-free yield curve, reported trades, broker-dealer quotes, benchmark yields, and industry and market indicators. These are considered observable market inputs and, therefore, the fair values of these securities are classified as Level 2. • Municipal securities consist primarily of bonds issued by U.S.-domiciled state and municipal entities. The fair values of these securities are determined using the spread above the risk-free yield curve, reported trades, broker-dealer quotes and benchmark yields. These are considered observable market inputs and, therefore, the fair values of these securities are classified as Level 2. Equities Our investments in equities consist of a combination of publicly and privately traded investments. Our publicly traded equity investments in common and preferred stocks predominantly trade on major exchanges and are managed by our external advisors. Our exchange-traded funds also trade on major exchanges. Our publicly traded equities are widely diversified and there is no significant concentration in any specific industry. We use an internationally recognized pricing service to estimate the fair value of our publicly traded equities and exchange-traded funds. We have categorized the majority of our publicly traded equity investments, other than preferred stock, and our exchange-traded funds as Level 1 investments because the fair values of these investments are based on unadjusted quoted prices in active markets for identical assets. We have two equity securities trading in an inactive market and, as a result have been classified as Level 2. The fair value estimates of our investments in publicly traded preferred stock are based on observable market data and, as a result, have been categorized as Level 2. Other investments, at fair value We have ongoing due diligence processes with respect to the other investments carried at fair value in which we invest, including active discussions with managers of the investments. These processes are designed to assist us in assessing the quality of information provided by, or on behalf of, each fund and in determining whether such information continues to be reliable or whether further review is warranted. Certain funds do not provide full transparency of their underlying holdings; however, we obtain the audited financial statements for funds annually and review the audited results relative to the net asset values provided by the managers, and regularly review and discuss the fund performance with the fund managers to corroborate the reasonableness of the reported net asset values ("NAV"). The use of NAV as an estimate of the fair value for investments in certain entities that calculate NAV is a permitted practical expedient. Due to the time lag in the NAV reported by certain fund managers we adjust the valuation for capital calls and distributions. Other investments measured at fair value using NAV as a practical expedient have not been classified in the fair value hierarchy. Other investments for which we do not use NAV as a practical expedient have been valued using prices from independent pricing services, investment managers and broker-dealers. The following describes the techniques generally used to determine the fair value of our other investments. • For our investments in hedge funds, we measure fair value by obtaining the most recently available NAV as advised by the external fund manager or third-party administrator. The fair values of these investments are measured using the NAV as a practical expedient and therefore have not been categorized within the fair value hierarchy. • Our investments in fixed income funds and equity funds are valued based on a combination of prices from independent pricing services, external fund managers or third-party administrators. For the publicly available prices we have classified the investments as Level 2. For the non-publicly available prices we are using NAV as a practical expedient and therefore these have not been categorized within the fair value hierarchy. • For our investments in private equity funds, we measure fair value by obtaining the most recently available NAV from the external fund manager or third-party administrator. The fair values of these investments are measured using the NAV as a practical expedient and therefore have not been categorized within the fair value hierarchy. • We measure the fair value of our direct investment in CLO equities based on valuations provided by independent pricing services. The fair values measured using prices provided by independent pricing services have been classified as Level 2. • For our investments in the CLO equity funds, we measure fair value by obtaining the most recently available NAV as advised by the external fund manager or third party administrator. The fair value of these investments is measured using the NAV as a practical expedient and therefore have not been categorized within the fair value hierarchy. • Our investments in private credit funds are primarily valued by obtaining the most recently available NAV from the external fund manager or third-party administrator. The fair values of these investments are measured using the NAV as a practical expedient and therefore have not been categorized within the fair value hierarchy. Also included within private credit funds was a loan which was valued at cost less distributions and was classified as Level 3; this has been fully paid down this quarter. • Included within other is an investment in a real estate debt fund, for which we measure fair value by obtaining the most recently available NAV from the external fund manager or third-party administrator. The fair value of this investment is measured using the NAV as a practical expedient and therefore has not been categorized within the fair value hierarchy. Cash and Cash Equivalents Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are very close to maturity. As such, they present insignificant risk of changes in value due to changes in interest rates. Included within cash and cash equivalents are money market funds, fixed interest deposits and highly liquid fixed maturity investments purchased with an original maturity of three months or less. The majority of our cash and cash equivalents included within the fair value hierarchy are comprised of money market and liquid reserve funds which have been categorized as Level 1. Fixed interest deposits and highly liquid fixed maturity investments with an original maturity of three months or less have been categorized as Level 2. Operating cash balances are not subject to the recurring fair value measurement guidance and are therefore excluded from the fair value hierarchy. Insurance Contracts - Fair Value Option The Company uses an internal model to calculate the fair value of the liability for losses and loss adjustment expenses and reinsurance balances recoverable on paid and unpaid losses for certain retroactive reinsurance contracts where we have elected the fair value option. The fair value is calculated as the aggregate of discounted cash flows plus a risk margin. The discounted cash flow approach uses (i) estimated nominal cash flows based upon an appropriate payment pattern developed in accordance with standard actuarial techniques and (ii) a discount rate based upon a high quality rated corporate bond yield plus a credit spread for non-performance risk. The model uses corporate bond rates across the yield curve depending on the estimated timing of the future cash flows and specific to the currency of the risk. The risk margin is calculated using the present value of the cost of capital. The cost of capital approach uses (i) projected capital requirements, (ii) multiplied by the risk cost of capital representing the return required for non-hedgeable risk based upon the weighted average cost of capital less investment income and (iii) discounted using the weighted average cost of capital. Derivative Instruments The fair values of our derivative instruments, as described in Note 5 - "Derivatives and Hedging Instruments" are classified as Level 2. The fair values are based upon prices in active markets for identical contracts. Level 3 Measurements and Changes in Leveling Transfers into or out of levels are recorded at their fair values as of the end of the reporting period, consistent with the date of determination of fair value. Investments The following tables present a reconciliation of the beginning and ending balances for all investments measured at fair value on a recurring basis using Level 3 inputs: Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Privately-held Equities Other Investments Total Privately-held Equities Other Investments Total Beginning fair value $ 330,404 $ 9,564 $ 339,968 $ 267,012 $ 314 $ 267,326 Purchases 19,652 — 19,652 34 — 34 Sales and paydowns — (9,250) (9,250) — — — Total realized and unrealized gains (losses) (1,331) — (1,331) 3,954 — 3,954 Transfer out of Level 3 into Level 2 — — — — — — Ending fair value $ 348,725 $ 314 $ 349,039 $ 271,000 $ 314 $ 271,314 Six months ended June 30, 2021 Six months ended June 30, 2020 Privately-held Equities Other Investments Total Privately-held Equities Other Investments Total Beginning fair value $ 274,741 $ 9,564 $ 284,305 $ 265,799 $ 87,869 $ 353,668 Purchases 76,844 — 76,844 1,392 37,092 38,484 Sales and paydowns — (9,250) (9,250) — (539) (539) Total realized and unrealized losses (2,860) — (2,860) 3,809 (40,368) (36,559) Transfer out of Level 3 into Level 2 — — — — (83,740) (83,740) Ending fair value $ 348,725 $ 314 $ 349,039 $ 271,000 $ 314 $ 271,314 Net realized and unrealized gains (losses) related to Level 3 assets in the tables above are included in net realized and unrealized gains (losses) in our consolidated statements of earnings. The securities transferred from Level 3 to Level 2 were based upon obtaining market observable information regarding the valuations of the specific assets. Valuations Techniques and Inputs The table below presents the qualitative information related to the fair value measurements for our privately held equity investments measured at fair value on a recurring basis using Level 3 inputs: Qualitative Information about Level 3 Fair Value Measurements Fair Value as of June 30, 2021 Valuation Techniques Unobservable Input Range (Average) (1) (in millions of U.S. dollars) $ 227.4 Guideline company methodology Distribution waterfall 12.8 41.0 Cost as approximation of fair value Cost as approximation of fair value 68.5 Transaction price approximates fair value Discount rate 10% - 12.5% (11.3%) 1.2x - 1.3x (1.3x) 12.1 Net Asset Value (2) NAV at recent transaction 19.9 $ 349.0 (1) The average represents the arithmetic average of the inputs and is not weighted by the relative fair value. (2) This relates to our direct investment in the equity of a privately held business development company ("BDC") which follows the Investment Company accounting guidance in ASC 946 and therefore values its underlying investments using NAV as a practical expedient as permitted by ASC 946. Our valuation of our equity interest in this BDC is therefore based on the NAV provided by the BDC, subject to our own independent validation procedures. The following table presents a reconciliation of the beginning and ending balances for all insurance contracts measured at fair value on a recurring basis using Level 3 inputs: Three Months Ended June 30, 2021 2020 Liability for losses and LAE Reinsurance balances recoverable Net Liability for losses and LAE Reinsurance balances recoverable Net Beginning fair value $ 2,277,382 $ 490,814 $ 1,786,568 $ 2,345,543 $ 653,396 $ 1,692,147 Assumed business — — — (4,975) — (4,975) Incurred losses and LAE: Increase (reduction) in estimates of ultimate losses (4,277) 6,258 (10,535) (21,075) (4,951) (16,124) Reduction in unallocated LAE (3,264) — (3,264) (3,299) — (3,299) Change in fair value 24,174 6,461 17,713 175,787 41,744 134,043 Total incurred losses and LAE 16,633 12,719 3,914 151,413 36,793 114,620 Paid losses (60,637) (11,306) (49,331) (62,279) (22,321) (39,958) Effect of exchange rate movements 727 116 611 24,837 3,516 21,321 Ending fair value $ 2,234,105 $ 492,343 $ 1,741,762 $ 2,454,539 $ 671,384 $ 1,783,155 Six Months Ended June 30, 2021 2020 Liability for losses and LAE Reinsurance balances recoverable Net Liability for losses and LAE Reinsurance balances recoverable Net Beginning fair value $ 2,452,920 $ 520,830 $ 1,932,090 $ 2,621,122 $ 695,518 $ 1,925,604 Incurred losses and LAE: Reduction in estimates of ultimate losses (12,500) 6,967 (19,467) (35,514) (8,122) (27,392) Reduction in unallocated LAE (7,659) — (7,659) (9,712) — (9,712) Change in fair value (69,909) (12,150) (57,759) 110,983 35,177 75,806 Total incurred losses and LAE (90,068) (5,183) (84,885) 65,757 27,055 38,702 Paid losses (134,587) (23,289) (111,298) (143,442) (38,435) (105,007) Effect of exchange rate movements 5,840 (15) 5,855 (88,898) (12,754) (76,144) Ending fair value $ 2,234,105 $ 492,343 $ 1,741,762 $ 2,454,539 $ 671,384 $ 1,783,155 The following table presents the components of the net change in fair value: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Changes in fair value due to changes in: Duration $ 4,005 $ 3,702 $ 5,571 $ 7,850 Corporate bond yield 13,708 130,341 (63,330) 66,249 Weighted cost of capital — — — (5,048) Risk cost of capital — — — 6,755 Change in fair value $ 17,713 $ 134,043 $ (57,759) $ 75,806 Below is a summary of the quantitative information regarding the significant observable and unobservable inputs used in the internal model to determine fair value on a recurring basis: June 30, 2021 December 31, 2020 Valuation Technique Unobservable (U) and Observable (O) Inputs Weighted Average Weighted Average Internal model Corporate bond yield (O) A rated A rated Internal model Credit spread for non-performance risk (U) 0.2% 0.2% Internal model Risk cost of capital (U) 5.1% 5.1% Internal model Weighted average cost of capital (U) 8.25% 8.25% Internal model Duration - liability (U) 8.21 years 8.17 years Internal model Duration - reinsurance balances recoverable on paid and unpaid losses (U) 7.88 years 8.23 years The fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses may increase or decrease due to changes in the corporate bond rate, the credit spread for non-performance risk, the risk cost of capital, the weighted average cost of capital and the estimated payment pattern as described below: • An increase in the corporate bond rate or credit spread for non-performance risk would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a decrease in the corporate bond rate or credit spread for non-performance risk would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. • An increase in the weighted average cost of capital would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a decrease in the weighted average cost of capital would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. • An increase in the risk cost of capital would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a decrease in the risk cost of capital would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. • The duration of the liability and recoverable is adjusted every period to reflect actual net payments during the period and expected future payments. An acceleration of the estimated payment pattern, a decrease in duration, would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a deceleration of the estimated payment pattern, an increase in duration, would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. In addition, the estimate of the capital required to support the liabilities is based upon current industry standards for capital adequacy. If the required capital per unit of risk increases, then the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses would increase. Conversely, a decrease in required capital would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Disclosure of Fair Values for Financial Instruments Carried at Cost Senior Notes As of June 30, 2021, our 4.50% Senior Notes due 2022 (the "2022 Senior Notes") and our 4.95% Senior Notes due 2029 (the "2029 Senior Notes" and, together with the 2022 Senior Notes, the "Senior Notes") were carried at amortized cost of $349.5 million and $494.8 million, respectively, while the fair value based on observable market pricing from a third party pricing service was $357.3 million and $574.1 million, respectively. The Senior Notes are classified as Level 2. Junior Subordinated Notes As of June 30, 2021, our 5.75% Fixed-Rate Reset Junior Subordinated Notes due 2040 (the “Junior Subordinated Notes”) were carried at amortized cost of $344.9 million, while the fair value based on observable market pricing from a third party pricing service was $371.5 million. The Junior Subordinated Notes are classified as Level 2. Insurance Contracts Disclosure of fair value of amounts relating to insurance contracts is not required, except those for which we elected the fair value option, as described above. Remaining Assets and Liabilities Our remaining assets and liabilities were generally carried at cost or amortized cost, which due to their short-term nature approximates fair value as of June 30, 2021 and December 31, 2020. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 11. VARIABLE INTEREST ENTITIES We consolidate all variable interest entities ("VIEs") in which we are considered to be the primary beneficiary. Consolidated VIE InRe Fund On April 1, 2021, we obtained control of the InRe Fund following redemption by the general partner, an affiliate of Hillhouse Group, of all of its outstanding ownership interests and termination of its investment management activities. As such, on that date we had full ownership of the InRe Fund and the power to direct its activities, which led to our determination to consolidate the InRe Fund. Prior to consolidation, our investment in the InRe Fund was recorded at fair value using the NAV as a practical expedient and thus, there was no gain or loss upon consolidation. The carrying amounts of the assets and liabilities of the InRe Fund are presented separately in “variable interest entity assets of the InRe Fund” and “variable interest entity liabilities of the InRe Fund” within the condensed consolidated balance sheet as of June 30, 2021. Net investment income and changes in the fair value of assets and liabilities of the InRe Fund are presented in “net investment income” and “net realized and unrealized gains,” respectively, in the consolidated statement of earnings for the three and six months ended June 30, 2021. Our subsidiary, which now serves as the general partner of the InRe Fund, has exposure to risk of loss that is not limited to the amount of its investment in accordance with the limited partnership agreement. We cannot predict the amount of loss, if any, which may occur as a result of this exposure; however, we believe the likelihood is remote that a material loss will occur. We have not committed to provide any financial support to the general partner of the InRe Fund. In addition, we have not committed to provide any additional financial support to the InRe Fund in excess of previously funded capital commitments. The InRe Fund utilizes prime brokerage borrowing facilities and has also securitized certain letters of credit relating to intragroup reinsurances. Funds that employ leverage through borrowings and derivatives can generate outsized returns but can also experience greater levels of volatility. The assets of Enstar are not available to the creditors of the InRe Fund. The following table presents the assets and liabilities associated with the InRe Fund, as presented within the condensed consolidated balance sheet: June 30, 2021 ASSETS Cash and cash equivalents $ 122,701 Restricted cash held at brokers (1) 879,836 Total cash, cash equivalents and restricted cash 1,002,537 Securities owned, at fair value 1,393,134 Other assets: Derivative assets, at fair value 477,645 Due from brokers 34,835 Receivable from investments sold 4,571 Other assets 800 Total other assets 517,851 Total variable interest entity assets of the InRe Fund $ 2,913,522 LIABILITIES Derivative liabilities, at fair value $ 302,100 Due to brokers 172,821 Securities sold, but not yet purchased, at fair value 135,950 Payable for investments purchased 61,439 Other liabilities 21,500 Total variable interest entity liabilities of the InRe Fund $ 693,810 (1) Includes margin posted as collateral which is considered to be restricted cash. The InRe Fund's cash flows are classified as operating cash flows in the consolidated statements of cash flows as the InRe Fund is accounted for under investment company accounting standards. The following table presents the net cash flows of the InRe Fund for the three and six months ended June 30, 2021, following its consolidation on April 1, 2021 (the cash flows prior to April 1, 2021 are not presented as the InRe Fund was not consolidated): Three and Six Months Ended June 30, 2021 OPERATING ACTIVITIES Net earnings $ 196,558 Adjustments to reconcile net earnings to cash flows: Realized gains on sales of investments and derivatives (321,705) Unrealized losses on investments and derivatives 104,975 Sales of trading securities 2,029,295 Purchases of trading securities (946,950) Payments to cover securities sold short (685,140) Proceeds from securities sold short 244,829 Net payment for derivative contracts (77,773) Changes in: Due from brokers, excluding restricted cash 641,839 Receivable from investments sold 456,996 Due to brokers (353,574) Payable for investments purchased (79,729) Performance fee payable 19,250 Other (415) Subtotal 684,367 Net operating cash flows from the InRe fund 1,228,456 INVESTING ACTIVITIES Consolidation of the InRe Fund opening cash and restricted cash balances 574,081 Net investing cash flows from the InRe fund 574,081 FINANCING ACTIVITIES Enstar capital withdrawals (1) (800,000) Net cash used in financing activities (2) (800,000) NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 1,002,537 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD — CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD $ 1,002,537 (1) Eliminated in the condensed consolidated statement of cash flows. (2) In addition to the cash flows presented above, for the six months ended June 30, 2021 the InRe Fund's non-cash financing activities included a third-party capital withdrawal from the InRe Fund totaling $61.4 million which was funded through the transfer of a trading security. Fixed Maturity Investments Asset Types The fair value of the underlying asset categories comprising the InRe Fund's securities owned classified as trading were as follows: June 30, 2021 Convertible bonds $ 194,275 Corporate bonds 4,518 Total fixed maturity investments $ 198,793 Credit Ratings The following table sets forth the credit ratings of the InRe Fund's fixed maturity investments classified as trading as of June 30, 2021: Amortized Cost Fair Value % of Total AAA Rated AA Rated A Rated BBB Rated Non-Investment Grade Non-Rated Convertible bonds $ 144,683 $ 194,275 98 % — $ 4,466 $ — $ — $ — $ 189,809 Corporate bonds 4,435 4,518 2 % — — 1,942 — 2,576 — Total 149,118 198,793 100 % $ — $ 4,466 $ 1,942 $ — $ 2,576 $ 189,809 $ of total fair value — % 2.2 % 1.0 % — % 1.3 % 95.5 % Equity Investments The following table summarizes the InRe Fund's equity investments classified as trading: June 30, 2021 Publicly traded equity investments in common and preferred stocks $ 1,079,679 Exchange-traded funds 55,655 $ 1,135,334 Equity investments include publicly traded common stocks and exchange-traded funds. The InRe Fund's publicly traded equity investments in common stocks predominantly trade on major exchanges. The InRe Fund's investments in exchange-traded funds also trade on major exchanges. Other Investments The InRe Fund's investments classified as trading included warrants and rights of $59.0 million as of June 30, 2021. Investment Income Major categories of net investment income (expense) for the InRe Fund are summarized as follows: Three and Six Months Ended June 30, 2021 Fixed maturity investments $ 456 Equity and other investments 2,139 Investment income 2,595 Investment expenses (22,766) Net investment expenses $ (20,171) Net Realized and Unrealized Gains (Losses) Components of net realized and unrealized gains (losses) for the InRe Fund were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net realized gains on sale: Fixed maturity securities $ 54,683 $ — $ 54,683 $ — Equity investments 105,777 — 105,777 — Derivatives 161,245 — 161,245 — Total net realized gains $ 321,705 $ — $ 321,705 $ — Net unrealized gains (losses): Fixed maturity securities $ (19,803) $ — $ (19,803) $ — Equity investments 66,620 — 66,620 — Other investments 2,211 — 2,211 — Derivatives (154,003) — (154,003) — Change in net asset value of the investment in the InRe Fund (1) — 365,054 76,607 320,196 Total net unrealized gains (losses) (104,975) 365,054 (28,368) 320,196 Net realized and unrealized gains $ 216,730 $ 365,054 $ 293,337 $ 320,196 (1) Prior to the consolidation of the InRe Fund on April 1, 2021, all income or (loss) from the InRe Fund was determined by the change in NAV of our holdings in the fund, which was included within net unrealized gains (losses) from other investments. Derivatives Not Designated or Not Qualifying as Net Investments in Hedging Instruments The InRe Fund’s activities include the purchase and sale of a variety of derivative financial instruments. These derivatives are used for trading purposes and / or managing risk (including market, credit and interest rate risk) associated with the portfolio of investments within the fund. Derivatives are instruments that derive their value from underlying asset prices, indices, reference rates and other inputs, or a combination of these factors. Derivatives may be traded on an exchange or they may be privately negotiated contracts. Derivative contracts, including options, swaps, contracts for differences, forwards and futures, may result in off-balance sheet risk as the InRe Fund’s obligations under these contracts may exceed the amounts recognized in the condensed consolidated balance sheets. All positions are reported in the condensed consolidated balance sheets at fair value and any change in fair value is reflected in the consolidated statements of earnings as a gain or loss in the period in which such change in fair value occurs. The derivatives involve varying degrees of market, credit and interest rate risks as described below. Market Risks Market risks may arise from the InRe Fund's investments in equity options, contract for differences or futures (which could have unfavorable results due to changes in interest rates, foreign exchange rates, or the fair values of the instruments underlying the contracts). The InRe Fund's exposure to market risks is managed through monitoring of open positions, diversification of the portfolio and balancing the risk of movements in equity prices by entering positions designed to protect against market downturns. The InRe Fund is exposed to market risk equal to the notional value of derivative contracts purchased and is exposed to market risk in excess of the amount recognized in the consolidated balance sheets on certain derivative contracts that are sold short (which represent obligations of the InRe Fund to deliver the specified security at the contracted price at a future point in time, and thereby create a liability to repurchase the security in the market at the prevailing prices). The liability for securities sold short is marked to market based on the current fair value of the underlying security at the reporting date with changes in fair value recorded as unrealized gains or losses in the accompanying consolidated statements of earnings. These transactions may involve market risk in excess of the amount currently reflected in the accompanying condensed consolidated balance sheets. Credit Risk Credit risk arises from the potential inability of counterparties to perform in accordance with the terms of a contract (see “Counterparty Credit Risk” section below). Interest Rate Risk Interest rate risk arises due to changes in various interest rates and the related impact on valuation of investments within the InRe Fund. The InRe Fund’s investments in instruments whose values vary with the level or volatility of interest rates exposes it to interest rate risk. These instruments include, but are not limited to, corporate bonds, convertible bonds, certain trading-related assets and liabilities and derivatives. Financial Statement Presentation The following table presents the notional values and estimated fair value by instrument as disclosed within the condensed consolidated balance sheet, before counterparty netting, as of June 30, 2021: June 30, 2021 Fair Value Notional Value Derivatives Not Designated as Hedging Instruments Derivative Assets Option contracts $ 431,211 $ 1,345,380 Forward contracts 46,434 292,882 Total derivative assets of the InRe Fund $ 477,645 $ 1,638,262 Derivative Liabilities Option contracts $ 256,801 $ 2,140,967 Forward contracts 45,299 1,233,086 Total derivative liabilities of the InRe Fund $ 302,100 $ 3,374,053 The following table presents the income from derivative instruments included within the consolidated statements of earnings for the three and six months ended June 30, 2021 (following consolidation of the InRe Fund on April 1, 2021): Three and Six Months Ended June 30, 2021 Derivatives Not Designated as Hedging Instruments Option contracts $ 82 Forward contracts 7,160 Total net gain from derivative instruments, presented as a component of net realized and unrealized gains $ 7,242 Counterparty Credit Risk Credit risk is the risk of the potential inability of counterparties to perform under the terms of contracts. The InRe Fund is exposed to the credit risk relating to whether the counterparty will meet its obligations when they come due. The InRe Fund’s exposure to credit risk at any point in time is limited to amounts recorded as assets in the condensed consolidated balance sheets. The InRe Fund seeks to reduce its credit risk by dealing with reputable counterparties that are high credit quality institutions, and by seeking to negotiate master agreements with inputs that include netting provisions that incorporate the right of “set off” (assets less liabilities) across OTC contracts with such counterparties. The following disclosure enables users of the financial statements to evaluate the effect or potential effect of netting arrangements on the InRe Fund's financial position for recognized assets and liabilities. These recognized assets and liabilities are financial instruments and derivative instruments that are either subject to an enforceable master netting arrangement or similar agreement or meet the following right of set off criteria: (1) the amounts owed by the InRe Fund to another party are determinable; (2) the InRe Fund has the right to set off the amounts owed with the amounts owed by the other party; (3) the InRe Fund intends to set off; and (4) the InRe Fund’s right of set off is enforceable at law. As of June 30, 2021, the InRe Fund holds financial instruments and derivative instruments that are eligible for offset in the condensed consolidated balance sheet and are subject to a master netting arrangement. The master netting arrangement allows the counterparty to net applicable collateral held on behalf of the InRe Fund against applicable liabilities or payment obligations of the InRe Fund to the counterparty. These arrangements also allow the counterparty to net any of its applicable liabilities or payment obligations they have to the InRe Fund against any collateral sent to the InRe Fund. The following table provides disclosure regarding the potential effect of offsetting of recognized assets presented in the condensed consolidated balance sheet: As of June 30, 2021 Gross Amounts of Recognized Derivative Assets Gross Derivative Liability Amounts Offset in the Balance Sheet Net Amounts of Derivative Assets Presented in the Balance Sheet Gross Amounts of Derivative Liabilities Not Offset in the Balance Sheet Cash Collateral Received Net Asset Amount UBS AG $ 197,794 $ — $ 197,794 $ (129,558) $ — $ 68,236 Morgan Stanley 54,285 — 54,285 (43,092) — 11,193 Goldman Sachs 34,319 — 34,319 (15,999) — 18,320 Merrill Lynch 168,882 — 168,882 (94,345) — 74,537 JP Morgan 22,305 — 22,305 (17,041) — 5,264 Other 60 — 60 (60) — — Total $ 477,645 $ — $ 477,645 $ (300,095) $ — $ 177,550 The following table provides disclosure regarding the potential effect of offsetting of recognized liabilities presented in the condensed consolidated balance sheet: As of June 30, 2021 Gross Amounts of Recognized Derivative Liabilities Gross Derivative Asset Amounts Offset in the Balance Sheet Net Amounts of Derivative Liabilities Presented in the Balance Sheet Gross Amounts of Derivative Assets Not Offset in the Balance Sheet Cash Collateral Pledged (1) Net Amount UBS AG $ (129,558) $ — $ (129,558) $ 129,558 $ — $ — Morgan Stanley (43,092) — (43,092) 43,092 — — Goldman Sachs (15,999) — (15,999) 15,999 — — Merrill Lynch (94,345) — (94,345) 94,345 — — JP Morgan (17,041) — (17,041) 17,041 — — Other (2,065) — (2,065) 985 1,080 — Total $ (302,100) $ — $ (302,100) $ 301,020 $ 1,080 $ — (1) Collateral amounts presented, if any, are limited to the derivative balances and, accordingly, do not include any excess collateral received or pledged. Total collateral pledged not presented above was $68.6 million with Barclays Bank Plc, $520.0 million with Goldman Sachs, $1.0 million with HSBC Bank Plc, $96.9 million with Merrill Lynch International, $121.4 million with Morgan Stanley and $70.7 million with UBS AG. Fair Value Hierarchy We have categorized the InRe Fund's assets and liabilities that are recorded at fair value on a recurring basis among levels based on the observability of inputs as follows: June 30, 2021 (in thousands) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Securities owned: Equities $ 1,135,334 $ — $ — $ 1,135,334 Warrants and rights — 59,007 — 59,007 Convertible bonds — 147,348 46,927 194,275 Corporate bonds — 4,518 — 4,518 Total securities owned 1,135,334 210,873 46,927 1,393,134 Derivatives assets: Option contracts — 431,211 — 431,211 Forward contracts — 46,434 — 46,434 Total derivative assets — 477,645 — 477,645 Securities sold, not yet purchased: Equities 89,427 — — 89,427 Corporate bonds — 46,523 — 46,523 Total securities sold, but not yet purchased 89,427 46,523 — 135,950 Derivative liabilities: Option contracts — 256,801 — 256,801 Forward contracts 7,003 38,296 — 45,299 Total Derivatives liabilities $ 7,003 $ 295,097 $ — $ 302,100 Level 3 Measurements and Changes in Leveling Transfers into or out of levels are recorded at their fair values as of the end of the reporting period, consistent with the date of determination of fair value. There were no securities transferred to or from Level 3 by the InRe Fund during the three and six months ended June 30, 2021. The InRe Fund purchased a convertible bond during the three and six months ended June 30, 2021 that is the only Level 3 investment measured at fair value on a recurring basis using unobservable inputs as of June 30, 2021. There were no other purchases, issuances, sales or settlements of Level 3 investments by the InRe Fund during the current period. Net unrealized gains related to Level 3 assets were $16.9 million and are included in net realized and unrealized gains (losses) in the consolidated statements of earnings. Valuation Techniques and Inputs The table below presents the qualitative information related to the fair value measurements for convertible bond investment measured at fair value on a recurring basis using Level 3 inputs: Qualitative Information about Level 3 Fair Value Measurements Fair Value as of June 30, 2021 Valuation Techniques Unobservable Input Range (Average) Unrealized Gain $ 46,927 Broker Pricing (1) (1) $ 16,927 (1) Where quoted market prices in active markets are not available to estimate fair values for recognition and disclosure purposes, the InRe Fund uses Broker Pricing, a technique that relies on unobservable inputs for the determination of fair value and involves a level of judgement and uncertainty. Changes in the broker price that reasonably could have been different at the reporting date may result in a higher or lower determination of fair value. Nonconsolidated VIEs We have investments in certain limited partnership funds which are deemed to be VIEs. The activities of these VIEs are generally limited to holding investments and our involvement in these entities is passive in nature. Our maximum exposure to these VIEs is limited to the fair value of our investment and unfunded commitments at any given time. We do not have the power to direct the activities which most significantly impact the VIEs economic performance. As a result, we are not the primary beneficiary of these VIEs and are therefore not required to consolidate them. The table below presents the fair value of our investments in nonconsolidated VIEs as well as our maximum exposure to loss associated with these VIEs: As of June 30, 2021 Fair Value Unfunded Commitments Maximum Exposure to Loss Equities Publicly traded equity investment in common stock $ 60,911 $ — $ 60,911 Other investments Hedge funds $ 73,130 $ — $ 73,130 Fixed income funds 132,229 44,263 176,492 Private equity funds 479,470 781,162 1,260,632 CLO equity funds 190,158 — 190,158 Private credit funds 242,359 72,289 314,648 Other 17,971 38,544 56,515 Total $ 1,135,317 $ 936,258 $ 2,071,575 Total investments in nonconsolidated VIEs $ 1,196,228 $ 936,258 $ 2,132,486 As of December 31, 2020 Fair Value Unfunded Commitments Maximum Exposure to Loss Equities Publicly traded equity investment in common stock $ 54,248 $ — $ 54,248 Other investments Hedge fund $ 2,638,339 $ — $ 2,638,339 Fixed income funds 98,874 16,538 115,412 Private equity funds 361,691 761,969 1,123,660 CLO equity funds 166,524 — 166,524 Private credit funds 183,069 126,455 309,524 Other 12,358 17,674 30,032 Total $ 3,460,855 $ 922,636 $ 4,383,491 Total investments in nonconsolidated VIEs $ 3,515,103 $ 922,636 $ 4,437,739 |
Premiums Written and Earned
Premiums Written and Earned | 6 Months Ended |
Jun. 30, 2021 | |
Insurance [Abstract] | |
PREMIUMS WRITTEN AND EARNED | $1 million 619,145 55,083 (47,772) 626,456 31.7 % Other reinsurers < $1 million 22,978 609 — 23,587 1.2 % Total $ 1,947,829 $ 76,670 $ (47,772) $ 1,976,727 100.0 % December 31, 2020 Run-off Legacy Underwriting Corporate & Other Total % of Top 10 reinsurers $ 1,036,676 $ 327,917 $ — $ 1,364,593 65.3 % Other reinsurers > $1 million 574,869 159,513 (36,780) 697,602 33.4 % Other reinsurers < $1 million 23,765 3,203 — 26,968 1.3 % Total $ 1,635,310 $ 490,633 $ (36,780) $ 2,089,163 100.0 % June 30, 2021 December 31, 2020 Information regarding top ten reinsurers: Number of top 10 reinsurers rated A- or better 7 7 Number of top 10 non-rated reinsurers (1) 3 3 Reinsurers rated A- or better in top 10 $ 803,312 $ 863,819 Non-rated reinsurers in top 10 (1) 523,372 500,774 Total top 10 reinsurance recoverables $ 1,326,684 $ 1,364,593 Single reinsurers that represent 10% or more of total reinsurance balance recoverables as of June 30, 2021 and December 31, 2020: Lloyd's Syndicates (2) $ 327,940 $ 331,118 Michigan Catastrophic Claims Association (3) $ 227,279 $ 229,374 Enhanzed Re (4) $ 226,003 $ — (1) The reinsurance balances recoverable from the three non-rated top 10 reinsurers was comprised of: • $227.3 million and $229.4 million as of June 30, 2021 and December 31, 2020 respectively, due from Michigan Catastrophic Claims Association; • $70.1 million and $73.8 million as of June 30, 2021 and December 31, 2020 respectively, due from a reinsurer who has provided us with security in the form of pledged assets i n trust for the full amount of the recoverable balance; and • $226.0 million and $208.4 million as of June 30, 2021 and December 31, 2020 respectively, due from Enhanzed Re, an equity method investee to whom some of our subsidiaries have retroceded their exposures through quota share reinsurance agreements as discussed in Note 20 - "Related Party Transactions." These quota share reinsurance agreements are written on a funds withheld basis. (2) Lloyd's Syndicates are rated A+ by Standard & Poor's and A by A.M. Best. (3) U.S. state backed reinsurer that is supported by assessments on active auto writers operating within the state. (4) Enhanzed Re, an equity method investee, is a Bermuda based Class 4 and Class E reinsurer as discussed in Note 20 - "Related Party Transactions." Allowance for Estimated Uncollectible Reinsurance Balances Recoverable on Paid and Unpaid Losses We evaluate and monitor the credit risk related to our reinsurers, and an allowance for estimated uncollectible reinsurance balances recoverable on paid and unpaid losses ("allowance for estimated uncollectible reinsurance") is established for amounts considered potentially uncollectible. The following tables show our gross and net balances recoverable from our reinsurers as well as the related allowance for estimated uncollectible reinsurance broken down by the credit ratings of our reinsurers. The majority of the allowance for estimated uncollectible reinsurance relates to the Run-off segment. June 30, 2021 Gross Allowance for estimated uncollectible reinsurance Net Provisions as a Reinsurers rated A- or above $ 1,385,215 $ 61,010 $ 1,324,205 4.4 % Reinsurers rated below A-, secured 599,123 — 599,123 — % Reinsurers rated below A-, unsecured 132,877 79,478 53,399 59.8 % Total $ 2,117,215 $ 140,488 $ 1,976,727 6.6 % December 31, 2020 Gross Allowance for estimated uncollectible reinsurance Net Provisions as a Reinsurers rated A- or above $ 1,464,529 $ 60,801 $ 1,403,728 4.2 % Reinsurers rated below A-, secured 608,999 — 608,999 — % Reinsurers rated below A-, unsecured 152,757 76,321 76,436 50.0 % Total $ 2,226,285 $ 137,122 $ 2,089,163 6.2 % The table below provides a reconciliation of the beginning and ending allowance for estimated uncollectible reinsurance balances for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Allowance for estimated uncollectible reinsurance, beginning of period $ 138,765 $ 143,327 $ 137,122 $ 147,639 Cumulative effect of change in accounting principle on allowance for estimated uncollectible reinsurance (1) — — — (195) Effect of exchange rate movement 2 (1,446) 160 (1,446) Current period change in the allowance 1,721 2,584 3,738 (1,533) Write-offs charged against the allowance — (600) — (600) Recoveries collected — (212) (532) (212) Allowance for estimated uncollectible reinsurance, end of period $ 140,488 $ 143,653 $ 140,488 $ 143,653 (1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. 12. PREMIUMS WRITTEN AND EARNED The following table provides a summary of premiums written and earned by segment: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Premiums Premiums Premiums Premiums Premiums Written Premiums Earned Premiums Written Premiums Earned Run-off Gross $ 8,001 $ 61,564 $ (2,155) $ 14,395 $ 30,184 $ 155,770 $ (1,828) $ 32,473 Ceded 2,160 (19,160) (1,048) (3,878) (15,525) (40,530) 801 (5,926) Net $ 10,161 $ 42,404 $ (3,203) $ 10,517 $ 14,659 $ 115,240 $ (1,027) $ 26,547 Legacy Underwriting Gross $ 13,515 $ 38,060 $ 141,547 $ 167,235 $ 41,089 $ 86,119 $ 350,981 $ 344,278 Ceded (6,501) (20,820) (17,568) (34,881) (22,608) (48,839) (74,719) (68,603) Net $ 7,014 $ 17,240 $ 123,979 $ 132,354 $ 18,481 $ 37,280 $ 276,262 $ 275,675 Total Gross $ 21,516 $ 99,624 $ 139,392 $ 181,630 $ 71,273 $ 241,889 $ 349,153 $ 376,751 Ceded (4,341) (39,980) (18,616) (38,759) (38,133) (89,369) (73,918) (74,529) Total $ 17,175 $ 59,644 $ 120,776 $ 142,871 $ 33,140 $ 152,520 $ 275,235 $ 302,222 Gross premiums written for the three and six months ended June 30, 2021 decreased by $117.9 million and $277.9 million, respectively, primarily due to StarStone International being placed into an orderly run-off in the second quarter of 2020 and the sale of Atrium in the first quarter of 2021. Refer to Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations" for further information." id="sjs-B4">6. REINSURANCE BALANCES RECOVERABLE ON PAID AND UNPAID LOSSES The following tables provide the total reinsurance balances recoverable on paid and unpaid losses: June 30, 2021 Run-off (1) Legacy Underwriting (1) Corporate & Other Total Recoverable from reinsurers on unpaid: Outstanding losses $ 1,179,211 $ 25,872 $ — $ 1,205,083 IBNR 563,115 49,444 — 612,559 ULAE 16,901 954 — 17,855 Fair value adjustments - acquired companies — — (14,165) (14,165) Fair value adjustments - fair value option — — (33,607) (33,607) Total reinsurance reserves recoverable 1,759,227 76,270 (47,772) 1,787,725 Paid losses recoverable 188,602 400 — 189,002 Total $ 1,947,829 $ 76,670 $ (47,772) $ 1,976,727 Reconciliation to Condensed Consolidated Balance Sheet: Reinsurance balances recoverable on paid and unpaid losses $ 1,421,879 $ 76,670 $ (14,165) $ 1,484,384 Reinsurance balances recoverable on paid and unpaid losses - fair value option 525,950 — (33,607) 492,343 Total $ 1,947,829 $ 76,670 $ (47,772) $ 1,976,727 (1) Effective January 1, 2021, the net loss reserves of StarStone International were transferred from the Legacy Underwriting segment to the Run-off segment. Refer to Note 22 - "Segment Information" for further details. December 31, 2020 Run-off Legacy Underwriting Corporate & Other Total Recoverable from reinsurers on unpaid: Outstanding losses $ 938,231 $ 263,638 $ — $ 1,201,869 IBNR 508,082 139,761 — 647,843 ULAE 16,688 — — 16,688 Fair value adjustments - acquired companies — — (15,353) (15,353) Fair value adjustments - fair value option — — (21,427) (21,427) Total reinsurance reserves recoverable 1,463,001 403,399 (36,780) 1,829,620 Paid losses recoverable 172,309 87,234 — 259,543 Total $ 1,635,310 $ 490,633 $ (36,780) $ 2,089,163 Reconciliation to Condensed Consolidated Balance Sheet: Reinsurance balances recoverable on paid and unpaid losses $ 1,093,053 $ 490,633 $ (15,353) $ 1,568,333 Reinsurance balances recoverable on paid and unpaid losses - fair value option 542,257 — (21,427) 520,830 Total $ 1,635,310 $ 490,633 $ (36,780) $ 2,089,163 Our (re)insurance Run-off subsidiaries and assumed portfolios, prior to acquisition, used retrocessional agreements to reduce their exposure to the risk of (re)insurance assumed. On an annual basis, StarStone International, included within the Run-off segment from January 1, 2021, purchased a tailored outwards reinsurance program designed to manage its risk profile. The majority of StarStone International's third-party reinsurance is with highly rated reinsurers or is collateralized by pledged assets or letters of credit. The fair value adjustments, determined on acquisition of (re)insurance subsidiaries, are based on the estimated timing of loss and LAE recoveries included in the Run-off segment and an assumed interest rate equivalent to a risk free rate for securities with similar duration to the acquired reinsurance balances recoverable on paid and unpaid losses plus a spread for credit risk, and are amortized over the estimated recovery period, as adjusted for accelerations in timing of payments as a result of commutation settlements. The determination of the As of June 30, 2021 and December 31, 2020, we had reinsurance balances recoverable on paid and unpaid losses of $2.0 billion and $2.1 billion, respectively. The decrease of $112.4 million was primarily due to cash collection s, partially offset by assumed ceded assets relating to CNA, Syndicate 609 and the Liberty Mutual retrocession to Enhanzed Re a Top Ten Reinsurers June 30, 2021 Run-off Legacy Underwriting Corporate & Other Total % of Top 10 reinsurers $ 1,305,706 $ 20,978 $ — $ 1,326,684 67.1 % Other reinsurers > $1 million 619,145 55,083 (47,772) 626,456 31.7 % Other reinsurers < $1 million 22,978 609 — 23,587 1.2 % Total $ 1,947,829 $ 76,670 $ (47,772) $ 1,976,727 100.0 % December 31, 2020 Run-off Legacy Underwriting Corporate & Other Total % of Top 10 reinsurers $ 1,036,676 $ 327,917 $ — $ 1,364,593 65.3 % Other reinsurers > $1 million 574,869 159,513 (36,780) 697,602 33.4 % Other reinsurers < $1 million 23,765 3,203 — 26,968 1.3 % Total $ 1,635,310 $ 490,633 $ (36,780) $ 2,089,163 100.0 % June 30, 2021 December 31, 2020 Information regarding top ten reinsurers: Number of top 10 reinsurers rated A- or better 7 7 Number of top 10 non-rated reinsurers (1) 3 3 Reinsurers rated A- or better in top 10 $ 803,312 $ 863,819 Non-rated reinsurers in top 10 (1) 523,372 500,774 Total top 10 reinsurance recoverables $ 1,326,684 $ 1,364,593 Single reinsurers that represent 10% or more of total reinsurance balance recoverables as of June 30, 2021 and December 31, 2020: Lloyd's Syndicates (2) $ 327,940 $ 331,118 Michigan Catastrophic Claims Association (3) $ 227,279 $ 229,374 Enhanzed Re (4) $ 226,003 $ — (1) The reinsurance balances recoverable from the three non-rated top 10 reinsurers was comprised of: • $227.3 million and $229.4 million as of June 30, 2021 and December 31, 2020 respectively, due from Michigan Catastrophic Claims Association; • $70.1 million and $73.8 million as of June 30, 2021 and December 31, 2020 respectively, due from a reinsurer who has provided us with security in the form of pledged assets i n trust for the full amount of the recoverable balance; and • $226.0 million and $208.4 million as of June 30, 2021 and December 31, 2020 respectively, due from Enhanzed Re, an equity method investee to whom some of our subsidiaries have retroceded their exposures through quota share reinsurance agreements as discussed in Note 20 - "Related Party Transactions." These quota share reinsurance agreements are written on a funds withheld basis. (2) Lloyd's Syndicates are rated A+ by Standard & Poor's and A by A.M. Best. (3) U.S. state backed reinsurer that is supported by assessments on active auto writers operating within the state. (4) Enhanzed Re, an equity method investee, is a Bermuda based Class 4 and Class E reinsurer as discussed in Note 20 - "Related Party Transactions." Allowance for Estimated Uncollectible Reinsurance Balances Recoverable on Paid and Unpaid Losses We evaluate and monitor the credit risk related to our reinsurers, and an allowance for estimated uncollectible reinsurance balances recoverable on paid and unpaid losses ("allowance for estimated uncollectible reinsurance") is established for amounts considered potentially uncollectible. The following tables show our gross and net balances recoverable from our reinsurers as well as the related allowance for estimated uncollectible reinsurance broken down by the credit ratings of our reinsurers. The majority of the allowance for estimated uncollectible reinsurance relates to the Run-off segment. June 30, 2021 Gross Allowance for estimated uncollectible reinsurance Net Provisions as a Reinsurers rated A- or above $ 1,385,215 $ 61,010 $ 1,324,205 4.4 % Reinsurers rated below A-, secured 599,123 — 599,123 — % Reinsurers rated below A-, unsecured 132,877 79,478 53,399 59.8 % Total $ 2,117,215 $ 140,488 $ 1,976,727 6.6 % December 31, 2020 Gross Allowance for estimated uncollectible reinsurance Net Provisions as a Reinsurers rated A- or above $ 1,464,529 $ 60,801 $ 1,403,728 4.2 % Reinsurers rated below A-, secured 608,999 — 608,999 — % Reinsurers rated below A-, unsecured 152,757 76,321 76,436 50.0 % Total $ 2,226,285 $ 137,122 $ 2,089,163 6.2 % The table below provides a reconciliation of the beginning and ending allowance for estimated uncollectible reinsurance balances for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Allowance for estimated uncollectible reinsurance, beginning of period $ 138,765 $ 143,327 $ 137,122 $ 147,639 Cumulative effect of change in accounting principle on allowance for estimated uncollectible reinsurance (1) — — — (195) Effect of exchange rate movement 2 (1,446) 160 (1,446) Current period change in the allowance 1,721 2,584 3,738 (1,533) Write-offs charged against the allowance — (600) — (600) Recoveries collected — (212) (532) (212) Allowance for estimated uncollectible reinsurance, end of period $ 140,488 $ 143,653 $ 140,488 $ 143,653 (1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. 12. PREMIUMS WRITTEN AND EARNED The following table provides a summary of premiums written and earned by segment: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Premiums Premiums Premiums Premiums Premiums Written Premiums Earned Premiums Written Premiums Earned Run-off Gross $ 8,001 $ 61,564 $ (2,155) $ 14,395 $ 30,184 $ 155,770 $ (1,828) $ 32,473 Ceded 2,160 (19,160) (1,048) (3,878) (15,525) (40,530) 801 (5,926) Net $ 10,161 $ 42,404 $ (3,203) $ 10,517 $ 14,659 $ 115,240 $ (1,027) $ 26,547 Legacy Underwriting Gross $ 13,515 $ 38,060 $ 141,547 $ 167,235 $ 41,089 $ 86,119 $ 350,981 $ 344,278 Ceded (6,501) (20,820) (17,568) (34,881) (22,608) (48,839) (74,719) (68,603) Net $ 7,014 $ 17,240 $ 123,979 $ 132,354 $ 18,481 $ 37,280 $ 276,262 $ 275,675 Total Gross $ 21,516 $ 99,624 $ 139,392 $ 181,630 $ 71,273 $ 241,889 $ 349,153 $ 376,751 Ceded (4,341) (39,980) (18,616) (38,759) (38,133) (89,369) (73,918) (74,529) Total $ 17,175 $ 59,644 $ 120,776 $ 142,871 $ 33,140 $ 152,520 $ 275,235 $ 302,222 Gross premiums written for the three and six months ended June 30, 2021 decreased by $117.9 million and $277.9 million, respectively, primarily due to StarStone International being placed into an orderly run-off in the second quarter of 2020 and the sale of Atrium in the first quarter of 2021. Refer to Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations" for further information. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 13. GOODWILL AND INTANGIBLE ASSETS As of June 30, 2021 and December 31, 2020, goodwill, included within other assets in the condensed consolidated balance sheets, was $63.0 million and related to the Run-off segment. Goodwill relating to the Legacy Underwriting segment of $8.0 million was impaired in the second quarter of 2020 following the decision to place StarStone International into run-off. The amortization recorded on the intangible assets of the Legacy Underwriting segment, prior to the reclassification of Atrium to held-for-sale, for the three and six months ended June 30, 2020 was $0.5 million and $1.0 million, respectively |
Debt Obligations and Credit Fac
Debt Obligations and Credit Facilities | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS AND CREDIT FACILITIES | 14. DEBT OBLIGATIONS AND CREDIT FACILITIES We utilize debt financing and credit facilities primarily for funding acquisitions and significant new business, investment activities and, from time to time, for general corporate purposes. Our debt obligations were as follows: Facility Origination Date Term June 30, 2021 December 31, 2020 4.50% Senior Notes due 2022 March 10, 2017 5 years $ 349,492 $ 349,253 4.95% Senior Notes due 2029 May 28, 2019 10 years 494,777 494,194 Total Senior Notes 844,269 843,447 5.75% Junior Subordinated Notes due 2040 August 26, 2020 20 years 344,943 344,812 EGL Revolving Credit Facility August 16, 2018 5 years 175,000 185,000 Total debt obligations $ 1,364,212 $ 1,373,259 The table below provides a summary of the total interest expense: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Interest expense on debt obligations $ 15,896 $ 13,675 $ 31,803 $ 26,870 Amortization of debt issuance costs 349 343 605 563 Funds withheld balances and other 56 — 72 — Total interest expense $ 16,301 $ 14,018 $ 32,480 $ 27,433 Debt Obligations Senior Notes We have issued two series of Senior Notes as shown in the table above. The 2022 Senior Notes and the 2029 Senior Notes bear interest at a fixed rate per annum, equal to 4.50% and 4.95%, respectively. We incurred costs of $2.9 million and $6.8 million in issuing the 2022 and 2029 Senior Notes, respectively. The unamortized costs as of June 30, 2021 were $0.5 million and $5.2 million, respectively (December 31, 2020: $0.7 million and $5.8 million, respectively). Junior Subordinated Notes Our wholly-owned subsidiary, Enstar Finance LLC ("Enstar Finance") issued the Junior Subordinated Notes as shown in the table above, which are fully and unconditionally guaranteed by us on an unsecured and junior subordinated basis. The Junior Subordinated Notes bear interest (i) during the initial five-year period ending August 31, 2025, at a fixed rate per annum of 5.75% and (ii) during each five-year reset period thereafter beginning September 1, 2025, at a fixed rate per annum equal to the five-year U.S. treasury rate calculated as of two business days prior to the beginning of such five-year period plus 5.468%. We incurred costs of $5.2 million in issuing the Junior Subordinated Notes. The unamortized costs as of June 30, 2021 and December 31, 2020 were $5.1 million and $5.2 million, respectively. EGL Revolving Credit Facility As of June 30, 2021, we were permitted to borrow up to an aggregate of $600.0 million under the revolving credit facility. We may request additional commitments under the facility up to an additional $400.0 million, which the existing lenders in their discretion or new lenders may provide, in each case subject to the terms of the agreement. To date, we have not requested any additional commitments under the facility. As of June 30, 2021, there was $425.0 million of available unutilized capacity under the facility. Refer to Note 23 - "Subsequent Events" for additional information related to borrowings subsequent to June 30, 2021. We pay interest on loans borrowed under the facility at a per annum rate comprising a reference rate determined based on the type of loan we borrow plus a margin based on the Company's long term senior unsecured debt ratings. The applicable reference rate is adjusted base rate for base rate loans and adjusted LIBOR for LIBOR loans. The applicable margin varies based upon changes to our long term senior unsecured debt ratings assigned by S&P or Fitch. We pay interest quarterly for base rate loans and as frequently as monthly for LIBOR loans, depending on the applicable interest period. We also pay a commitment fee based on the average daily Maturities As of June 30, 2021, the amount of outstanding debt obligations that will become due in each of the next five years and thereafter was as follows: 2021, $0; 2022, $350.0 million; 2023, $175.0 million; 2024, $0; 2025 $0; and thereafter, $850.0 million. Credit and Deposit Facilities We utilize unsecured and secured letters of credit and a deposit facility to support certain of our (re)insurance performance obligations. $275.0 million Funds at Lloyd's Letter of Credit Facility We use letters of credit under this facility to satisfy a portion of our Funds at Lloyd's requirements. We may request additional commitments under the facility in an aggregate amount not to exceed $75.0 million and letters of credit issued under the facility will expire at the end of 2025. As of June 30, 2021 and December 31, 2020, our combined Funds at Lloyd's comprised cash and investments of $581.0 million (including $89.8 million provided under the Funds at Lloyd's Deposit Facility discussed below) and $260.9 million, respectively, and unsecured letters of credit of $210.0 million as of both dates. $90.0 million Funds at Lloyd’s Deposit Facility On May 6, 2021, we entered into a $90.0 million Funds at Lloyd's Deposit Facility. We use this facility to satisfy a portion of our Funds at Lloyd’s requirements. Under this facility, a third-party lender deposits a requested market valuation amount of eligible securities into Lloyd’s on behalf of our Lloyd’s corporate member. We may request additional commitments under the facility in an aggregate amount not to exceed $10.0 million, and the facility is scheduled to expire on May 6, 2023. As of June 30, 2021 the aggregate amount requested as deposits under the facility was $90.0 million. $250.0 million Letter of Credit Facility On June 3, 2021, we entered into an uncommitted letter of credit facility, and on June 4, 2021, we procured the issuance of a $250.0 million letter of credit thereunder. We use the letter of credit issued under this facility to provide collateral support for certain reinsurance obligations of our subsidiaries. As of June 30, 2021, the aggregate amount of letters of credit issued under the facility was $250.0 million. $100.0 million Letter of Credit Facility On May 24, 2021, we entered into an uncommitted letter of credit facility and procured the issuance of a $100.0 million letter of credit thereunder. We use the letter of credit issued under this facility to provide collateral support for certain reinsurance obligations of our subsidiaries. As of June 30, 2021, the aggregate amount of letters of credit issued under the facility was $100.0 million. $120.0 million Letter of Credit Facility We use this facility to provide collateral support for certain reinsurance obligations of our subsidiaries. We may request additional commitments under the facility in an aggregate amount not to exceed $60.0 million, which the existing lender in its discretion or new lenders may provide, in each case subject to the terms of the agreement. As of June 30, 2021 and December 31, 2020, the aggregate amount of letters of credit issued under the facility was $115.7 million as of both dates. $800.0 million Syndicated Letter of Credit Facility We use this facility to collateralize certain reinsurance obligations. As of June 30, 2021 and December 31, 2020, the aggregate amount of letters of credit issued under the facility was $566.6 million and $587.1 million, respectively. The December 31, 2020 amount has been corrected from $424.1 million that was previously disclosed in our 2020 Annual Report on Form-K. This correction has no impact on our condensed consolidated financial statements and is not considered material to previously issued financial statements. $65.0 million Letter of Credit Facility We use this facility to collateralize a portion of our reinsurance obligations relating to our novation transaction with Hannover Re, which we completed on August 6, 2020, as discussed in Note 2 - "Significant New Business." As of June 30, 2021 and December 31, 2020, the aggregate amount of letters of credit issued under the facility was $61.0 million as of both dates. Subsidiary Capital Letters of Credit We also utilize unsecured letters of credit to support the regulatory capital requirements of certain of our subsidiaries. $100.0 million Bermuda Letter of Credit Facility The letter of credit issued under this facility qualifies as eligible capital for one of our Bermuda regulated subsidiaries. As of June 30, 2021 and December 31, 2020, the aggregate face amount of letters of credit under the facility was $100.0 million as of both dates. GBP £32.0 million United Kingdom Letter of Credit Facility The letter of credit issued under this facility qualifies as Ancillary Own Funds capital for one of our U.K. regulated subsidiaries. As of June 30, 2021 and December 31, 2020, the aggregate face amount of letters of credit under the facility was $44.2 million and $43.7 million, respectively. Refer to Note 15 - "Debt Obligations and Credit Facilities" to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further information on the terms of our letter of credit facilities. |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS | 15. NONCONTROLLING INTERESTSWe have both redeemable noncontrolling interest ("RNCI") and noncontrolling interest ("NCI") on our condensed consolidated balance sheets. RNCI with redemption features that are not solely within our control are classified within temporary equity in the condensed consolidated balance sheets and carried at redemption value, which is fair value. The change in fair value is recognized through retained earnings as if the balance sheet date were also the redemption date. In addition, we also have NCI, which is carried at book value, does not have redemption features and is classified within equity in the condensed consolidated balance sheets. Redeemable Noncontrolling Interest As of December 31, 2020, the RNCI comprised the ownership interests held by the Trident V Funds (39.3%) and the Dowling Funds (1.7%) in our subsidiary North Bay. As discussed in Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations," North Bay owned our investment in Northshore, the holding company that owns Atrium and Arden and SSHL, the holding company for the StarStone group, which includes StarStone International and which also owned StarStone U.S. prior to its sale to Core Specialty which was completed on November 30, 2020. Following the completion of the Exchange Transaction on January 1, 2021, there is no RNCI in respect of Northshore and the remaining RNCI as of June 30, 2021 relates only to StarStone International. The following is a reconciliation of the beginning and ending carrying amount of the equity attributable to the RNCI: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Balance at beginning of period $ 174,803 $ 392,773 $ 365,436 $ 438,791 Distributions paid — — (202,073) — Net earnings (losses) attributable to RNCI 2,441 (20,140) 14,186 (52,099) Change in unrealized losses on AFS investments attributable to RNCI 40 10,543 (211) 6,373 Change in currency translation adjustments attributable to RNCI 165 (165) 841 (165) Change in redemption value of RNCI — (16,478) (730) (26,628) Cumulative effect of change in accounting principle attributable to RNCI (1) — — — 261 Balance at end of period $ 177,449 $ 366,533 $ 177,449 $ 366,533 (1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. We carried the RNCI at its estimated redemption value, which is fair value, as of June 30, 2021 and December 31, 2020. The decrease in the six months ended June 30, 2021 was primarily driven by the Exchange Transaction, which was completed on January 1, 2021, whereas the decrease in the six months ended June 30, 2020 was primarily attributable to net losses related to StarStone during that period. Refer to Note 21 - "Commitments and Contingencies" for additional information regarding RNCI. Noncontrolling Interest As of June 30, 2021 and December 31, 2020, we had $12.6 million and $13.6 million, respectively, of NCI primarily related to external interests in three of our subsidiaries. A reconciliation of the beginning and ending carrying amount of the equity attributable to NCI is included in the consolidated statement of changes in shareholder's equity. |
Shareholders Equity
Shareholders Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
SHAREHOLDERS EQUITY | 16. SHAREHOLDERS' EQUITY Voting Ordinary Shares Share Repurchases On February 25, 2021, our Board of Directors approved an extension of the duration of our previously announced ordinary share repurchase program (the “Repurchase Program”) through March 1, 2022. The Repurchase Program was previously set to expire on March 1, 2021. Pursuant to the Repurchase Program, the Company was able to repurchase a limited number of its ordinary shares, not to exceed $150.0 million in aggregate, including shares repurchased prior to the extension of the Repurchase Program. Pursuant to the Repurchase Program during the three and six months ended June 30, 2021, we repurchased 30,364 and 48,367 ordinary shares, at an average price of $237.39 and $236.39, respectively, and for an aggregate price of $7.2 million and $11.4 million, respectively. As of June 30, 2021, the remaining capacity under the Repurchase Program was $112.6 million. Refer to Note 23 - "Subsequent Events" for additional information related to ordinary share repurchases subsequent to June 30, 2021 and the termination of the Repurchase Program on July 15, 2021. Non-Voting Ordinary Shares Series C Warrants to acquire 175,901 Series C Non-Voting Ordinary Shares for an exercise price of $115.00 per share were exercised on a non-cash basis during the six months ended June 30, 2021, which resulted in a total of 89,590 Series C Non-Voting Ordinary Shares being issued in the period. Dividends on Preferred Shares During the three months ended June 30, 2021 and 2020, we declared and paid dividends on Series D Preferred Shares of $7.0 million and on Series E Preferred Shares of $1.9 million for both periods. During the six months ended June 30, 2021 and 2020, we declared and paid dividends on Series D Preferred Shares of $14.0 million and on Series E Preferred Shares of $3.9 million for both periods. Refer to Note 23 - "Subsequent Events" for additional information related to preferred share dividends declared subsequent to June 30, 2021. Accumulated Other Comprehensive Income The following tables present a roll forward of accumulated other comprehensive income (loss): Unrealized gains (losses) arising during the year Cumulative Currency Translation Adjustment Defined Benefit Pension Liability Total Balance, March 31, 2021, net of tax $ (26,541) $ 8,619 $ 207 $ (17,715) Unrealized gains on fixed income available-for-sale investments arising during the year 57,020 — — 57,020 Reclassification adjustment for change in allowance for credit losses recognized in net earnings (5,094) — — (5,094) Reclassification adjustment for net realized gains included in net earnings (529) — — (529) Change in currency translation adjustment — (399) — (399) Total other comprehensive income (loss) 51,397 (399) — 50,998 Other comprehensive (income) loss attributable to RNCI (40) (166) — (206) Balance, June 30, 2021, net of tax $ 24,816 $ 8,054 $ 207 $ 33,077 Unrealized gains (losses) arising during the year Cumulative Currency Translation Adjustment Defined Benefit Pension Liability Total Balance, March 31, 2020, net of tax $ (41,573) $ 7,862 $ (945) $ (34,656) Unrealized gains on fixed income available-for-sale investments arising during the year 112,506 — — 112,506 Reclassification adjustment for change in allowance for credit losses recognized in net earnings (10,762) — — (10,762) Reclassification adjustment for net realized gains included in net earnings (4,222) — — (4,222) Change in currency translation adjustment — (1,205) — (1,205) Total other comprehensive income (loss) 97,522 (1,205) — 96,317 Other comprehensive (income) loss attributable to RNCI (10,543) 167 — (10,376) Balance, June 30, 2020, net of tax $ 45,406 $ 6,824 $ (945) $ 51,285 Unrealized gains (losses) arising during the year Cumulative Currency Translation Adjustment Defined Benefit Pension Liability Total Balance, December 31, 2020, net of tax $ 72,576 $ 7,876 $ 207 $ 80,659 Unrealized losses on fixed income available-for-sale investments arising during the year (54,254) — — (54,254) Reclassification adjustment for change in allowance for credit losses recognized in net earnings 6,931 — — 6,931 Reclassification adjustment for net realized gains included in net earnings (1,123) — — (1,123) Reclassification to earnings on disposal of subsidiary 475 — — 475 Change in currency translation adjustment — 1,019 — 1,019 Total other comprehensive income (loss) (47,971) 1,019 — (46,952) Other comprehensive (income) loss attributable to RNCI 211 (841) — (630) Balance, June 30, 2021, net of tax $ 24,816 $ 8,054 $ 207 $ 33,077 Unrealized gains (losses) arising during the year Cumulative Currency Translation Adjustment Defined Benefit Pension Liability Total Balance, December 31, 2019, net of tax $ (432) $ 8,548 $ (945) $ 7,171 Unrealized gains on fixed income available-for-sale investments arising during the year 53,771 — — 53,771 Reclassification adjustment for change in allowance for credit losses recognized in net earnings 2,450 — — 2,450 Reclassification adjustment for net realized gains included in net earnings (4,010) — — (4,010) Change in currency translation adjustment — (1,891) — (1,891) Total other comprehensive income (loss) 52,211 (1,891) — 50,320 Other comprehensive (income) loss attributable to RNCI (6,373) 167 — (6,206) Balance, June 30, 2020, net of tax $ 45,406 $ 6,824 $ (945) $ 51,285 The following table presents details about the tax effects allocated to each component of other comprehensive income (loss): Three Months Ended June 30, 2021 2020 Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Unrealized gains (losses) on fixed income available-for-sale investments arising during the year $ 59,178 $ (2,158) $ 57,020 $ 112,506 $ — $ 112,506 Reclassification adjustment for change in allowance for credit losses recognized in net earnings (5,090) (4) (5,094) (10,762) — (10,762) Reclassification adjustment for net realized (gains) losses included in net earnings (630) 101 (529) (4,222) — (4,222) Change in currency translation adjustment (399) — (399) (1,205) — (1,205) Other comprehensive income (loss) $ 53,059 $ (2,061) $ 50,998 $ 96,317 $ — $ 96,317 Six Months Ended June 30, 2021 2020 Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Unrealized gains (losses) on fixed income available-for-sale investments arising during the year $ (57,089) $ 2,835 $ (54,254) $ 53,771 $ — $ 53,771 Reclassification adjustment for change in allowance for credit losses recognized in net earnings 7,137 (206) 6,931 2,450 — 2,450 Reclassification adjustment for net realized (gains) losses included in net earnings (1,499) 376 (1,123) (4,010) — (4,010) Reclassification to earnings on disposal of subsidiary 586 (111) 475 — — — Change in currency translation adjustment 1,019 — 1,019 (1,891) — (1,891) Other comprehensive income (loss) $ (49,846) $ 2,894 $ (46,952) $ 50,320 $ — $ 50,320 The following table presents details of amounts reclassified from accumulated other comprehensive income: Three Months Ended Details about AOCI components June 30, 2021 June 30, 2020 Affected Line Item in Statement where Net Earnings are presented Unrealized gains on fixed income available-for-sale investments 5,720 13,012 Net realized and unrealized gains — 1,972 Net loss from discontinued operations 5,720 14,984 Total before tax (97) — Income tax benefit Total reclassifications for the period, net of tax 5,623 14,984 Six Months Ended Details about AOCI components June 30, 2021 June 30, 2020 Affected Line Item in Statement where Net Earnings are presented Unrealized gains (losses) on fixed income available-for-sale investments (6,224) 894 Net realized and unrealized gains — 666 Net loss from discontinued operations (6,224) 1,560 Total before tax (59) — Income tax benefit Total reclassifications for the period, net of tax (6,283) 1,560 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 17. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted net earnings per ordinary share: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Numerator: Earnings per share attributable to Enstar ordinary shareholders: Net earnings from continuing operations (1) $ 377,326 $ 799,232 $ 560,523 $ 283,632 Net loss from discontinued operations (2) — (679) — (1,900) Net earnings attributable to Enstar ordinary shareholders: $ 377,326 $ 798,553 $ 560,523 $ 281,732 Denominator: Weighted-average ordinary shares outstanding — basic (3) 21,631,749 21,565,240 21,597,236 21,557,542 Effect of dilutive securities: Share-based compensation plans (4) 200,469 185,300 214,849 177,264 Warrants (5) — 38,702 80,659 53,525 Weighted-average ordinary shares outstanding — diluted 21,832,218 21,789,242 21,892,744 21,788,331 Earnings per share attributable to Enstar ordinary shareholders: Basic: Net earnings from continuing operations $ 17.44 $ 37.06 $ 25.95 $ 13.16 Net loss from discontinued operations — (0.03) — (0.09) Net earnings per ordinary share $ 17.44 $ 37.03 $ 25.95 $ 13.07 Diluted: Net earnings from continuing operations $ 17.28 $ 36.68 $ 25.60 $ 13.02 Net loss from discontinued operations — (0.03) — (0.09) Net earnings per ordinary share $ 17.28 $ 36.65 $ 25.60 $ 12.93 (1) Net earnings from continuing operations attributable to Enstar ordinary shareholders equals net earnings from continuing operations, plus net loss (earnings) from continuing operations attributable to noncontrolling interest, less dividends on preferred shares. (2) Net loss from discontinued operations attributable to Enstar ordinary shareholders equals net loss from discontinued operations, net of income tax benefit (expense), plus net loss from discontinued operations attributable to noncontrolling interest; refer to Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations" for a breakdown by period. (3) Weighted-average ordinary shares for basic earnings per share includes ordinary shares (voting and non-voting) but excludes ordinary shares held in the Enstar Group Limited Employee Benefit Trust (the "EB Trust") in respect of Joint Share Ownership Plan ("JSOP") awards. (4) Share-based dilutive securities include restricted shares, restricted share units, and performance share units. Certain share-based compensation awards, including the ordinary shares held in the EB Trust in respect of JSOP awards, were excluded from the calculation for the three and six months ended June 30, 2021 and 2020 because they were anti-dilutive. (5) Warrants to acquire 175,901 Series C Non-Voting Ordinary Shares for an exercise price of $115.00 per share were exercised on a non-cash basis during the six months ended June 30, 2021, which resulted in a total of 89,590 Series C Non-Voting Ordinary Shares being issued in the period. As of June 30, 2021, there were no warrants outstanding following the exercise described. The warrants presented in the table above are a weighted-average of the warrants outstanding for the period. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
SHARE-BASED COMPENSATION | 18. SHARE-BASED COMPENSATION We provide various employee benefits including share-based compensation, an employee share purchase plan and an annual incentive compensation program. These are described in Note 19 - "Share-Based Compensation and Pensions" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020. The table below provides a summary of the compensation costs for all of our share-based compensation plans: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Share-based compensation plans: Restricted shares and restricted share units $ 1,714 $ 2,330 $ 3,009 $ 3,929 Performance share units 2,995 5,855 6,890 5,188 Cash-settled stock appreciation rights 245 (316) 3,013 (3,475) Joint share ownership plan expense 1,133 1,133 2,254 2,005 Other share-based compensation plans: Northshore incentive plan — (25) — 447 StarStone incentive plan — — — (223) Deferred compensation and ordinary share plan for non-employee directors 108 93 979 959 Employee share purchase plan 81 104 166 208 Total share-based compensation $ 6,276 $ 9,174 $ 16,311 $ 9,038 The associated tax benefit recorded to income tax benefit in the consolidated statement of earnings was $0.5 million and $0.4 million for the three months ended June 30, 2021, and 2020, respectively and $1.4 million and $1.3 million for the six months ended June 30, 2021, and 2020, respectively. |
Income Taxation
Income Taxation | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXATION | 19. INCOME TAXATION Interim Tax Calculation Method We use the estimated annual effective tax rate method for computing our interim tax provision. This method applies our best estimate of the effective tax rate expected for the full year to our year-to-date earnings before income taxes. We provide for income tax expense or benefit based upon our pre-tax earnings and the provisions of currently enacted tax laws. Certain items deemed to be unusual, infrequent or not reliably estimated are excluded from the estimated annual effective tax rate. In the event such items are identified, the actual tax expense or benefit is reported in the same period as the related item. Certain other items are not included in the estimated annual effective tax rate, such as changes in the assessment of valuation allowance on deferred tax assets and uncertain tax positions, if any. Interim Tax Expense The effective tax rates on income for the three months ended June 30, 2021 and 2020 were 2.4% and 2.1%, respectively, and for the six months ended June 30, 2021 and 2020 were 0.6% and 4.4%, respectively. The effective tax rate on income differs from the statutory rate of 0% due to tax on foreign operations, primarily the U.S. and the U.K. We have foreign operating subsidiaries and branch operations principally located in the U.S., U.K., Continental Europe and Australia that are subject to federal, foreign, state and local taxes in those jurisdictions. The undistributed earnings from our foreign subsidiaries will be indefinitely reinvested in those jurisdictions where the undistributed earnings were earned. Deferred tax liabilities have not been accrued with respect to the undistributed earnings of our foreign subsidiaries. Generally, when earnings are distributed as dividends, withholding taxes may be imposed by the jurisdiction of the paying subsidiary. For our U.S. subsidiaries, we have not currently accrued any withholding taxes with respect to unremitted earnings because, solely for U.S. Federal income tax purposes, there are no accumulated positive earnings and profits that could be subject to U.S. dividend withholding tax. For our United Assessment of Valuation Allowance on Deferred Tax Assets We have estimated the future taxable income of our foreign subsidiaries and have provided a valuation allowance in respect of loss carryforwards where we do not expect to realize a tax benefit. We have considered all available evidence using a "more likely than not" standard in determining the amount of the valuation allowance. During the three and six months ended June 30, 2021, we have maintained a valuation allowance for deferred tax assets which management does not believe meet the "more likely than not" criteria. Unrecognized Tax Benefits There were no unrecognized tax benefits as of June 30, 2021 and December 31, 2020. Tax Examinations Our operating subsidiaries may be subject to audit by various tax authorities and may have different statutes of limitations expiration dates. With limited exceptions, our major subsidiaries that operate in the U.S., U.K. and Australia are no longer subject to tax examinations for years before 2016. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 20. RELATED PARTY TRANSACTIONSStone Point Capital LLC Through several private transactions occurring from May 2012 to July 2012 and an additional private transaction that closed in May 2018, investment funds managed by Stone Point Capital LLC ("Stone Point") have acquired an aggregate of 1,635,986 of our Voting Ordinary Shares (which constitutes 8.8% of our outstanding Voting Ordinary Shares). On November 6, 2013, we appointed James D. Carey to our Board of Directors. Mr. Carey is the sole member of an entity that is one of four general partners of the entities serving as general partners for Trident, is a member of the investment committees of such general partners, and is a member and senior principal of Stone Point, the manager of the Trident funds. On November 30, 2020, we completed the sale and recapitalization of StarStone U.S. to Core Specialty in a transaction described in Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations". Pursuant to the terms of a Recapitalization Agreement entered into on August 13, 2020 among us, the Trident V Funds, which are advised by Stone Point, and the Dowling Funds (the "Recapitalization Agreement"), we agreed to exchange a portion of our indirect interest in Northshore, the holding company that owns Atrium and Arden, for all of the Trident V Funds’ indirect interest in StarStone U.S. (the “Exchange Transaction”), which is described in Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations". Our interests in StarStone and Atrium were held through North Bay, which was a joint venture between us, the Trident V Funds and the Dowling Funds. As of December 31, 2020, we had an indirect 59.0% interest in North Bay and the Trident V Funds and the Dowling Funds owned 39.3% and 1.7%, respectively. North Bay owned 100% of StarStone Specialty Holdings Limited ("SSHL"), the holding company for the StarStone group, which included StarStone U.S. and StarStone International. North Bay also owned 92% of Northshore, the holding company for Atrium and Arden. North Bay also owned the preferred equity of three segregated cells within our wholly-owned subsidiary Fitzwilliam Insurance Limited (the “Fitzwilliam Cells”) that have provided reinsurance to StarStone and are considered part of StarStone International. Following the completion of the sale and recapitalization of StarStone U.S. and the Exchange Transaction, we owned 25.2% on a fully diluted basis (24.7% as of June 30, 2021) of Core Specialty, which owns StarStone U.S., and 13.8% of Northshore, which continues to own Atrium and Arden. The Trident V Funds owned 76.3% of Northshore, and the Dowling Funds owned 0.4% of Core Specialty and 1.6% of Northshore. Additional information relating to our remaining interest in Northshore is set forth under the heading "Northshore" below. The Exchange Transaction had no impact on the ultimate ownership of SSHL, which continues to own StarStone International, with us, the Trident V Funds and the Dowling Funds retaining our and their ownership interests in SSHL of 59.0%, 39.3% and 1.7%, respectively. In connection with the closing of the Exchange Transaction, we entered into amended and restated shareholders’ agreements with the Trident V Funds and the Dowling Funds with respect to our investment in SSHL and Northshore. With respect to SSHL, we have the right to designate three of five members of the SSHL board of directors and the Trident V Funds have the right to designate the other two members. The Trident V Funds also have certain customary rights as a minority shareholder to approve certain material matters and transactions. Each shareholder of SSHL must provide us and the Trident V Funds with a right of first offer to acquire its shares in SSHL if such shareholder wishes to sell them. Each shareholder will also have certain rights to participate in sales of SSHL shares by the other shareholders, and we have certain rights to cause the Trident V Funds and the Dowling Funds to sell their SSHL shares if we wish to sell control of SSHL or the StarStone International business. Also pursuant to the terms of the shareholders’ agreement for SSHL, at any time after December 31, 2022, the Trident V Funds have the right to cause us to purchase their shares in SSHL at their fair market value, and the Dowling Funds have the right to participate in any such sale transaction initiated by the Trident V Funds. We would be entitled to pay the purchase price for such SSHL shares in cash or in unrestricted ordinary shares of Enstar that are then listed or admitted to trading on a national securities exchange. At any time after March 31, 2023, we will have the right to cause the Trident V Funds and the Dowling Funds to sell their shares in SSHL to us at their fair market value. We would be obligated to pay the purchase price for such SSHL shares in cash. Pursuant to the terms of the shareholders’ agreement for Northshore, for so long as we own 50% or more of the Northshore shares we held upon the closing of the Exchange Transaction, we have the right to designate one member to the board of directors of Northshore and each of its material subsidiaries. Our shares in Northshore are subject to an 18-month restriction on transfer following the closing of the Exchange Transaction, after which the Trident V Funds have a right of first offer to acquire our shares in Northshore if we wish to sell them. We have certain rights to participate in sales of Northshore shares by the Trident V Funds, and the Trident V Funds have certain rights to cause us to sell our Northshore shares if the Trident V Funds wish to sell control of Northshore or the Atrium business. We, in partnership with StarStone's other shareholders, have previously completed transactions to provide capital support to StarStone in the form of: (i) a contribution to its contributed surplus account and a loss portfolio transfer, effective October 1, 2018. To fund the transaction, the North Bay shareholders contributed an aggregate amount of $135.0 million to North Bay in proportion to their ownership interests. Trident’s proportionate contribution of $53.1 million was temporarily funded by North Bay and was reimbursed in the first quarter of 2019; and (ii) a loss portfolio transfer, effective April 1, 2019, for which shareholders agreed to contribute an aggregate amount of $48.0 million. In addition, Enstar has separately entered into a loss portfolio transfer and adverse development cover with StarStone effective October 1, 2019, whereby StarStone transferred $189.4 million in loss reserves and unearned premium to a wholly-owned Enstar subsidiary in exchange for premium of $189.4 million. Enstar also provided an additional $59.0 million adverse development cover in excess of the $189.4 million. As of June 30, 2021 and December 31, 2020, the RNCI on our balance sheet relating to these Trident co-investment transactions was $170.1 million and $350.2 million, respectively. As of June 30, 2021, we had the following additional relationships with Stone Point and its affiliates: • Investments in funds (carried within other investments) managed by Stone Point, with respect to which we recognized net unrealized gains (losses); • Investments in registered investment companies affiliated with entities owned by Trident or otherwise affiliated with Stone Point, with respect to which we recognized net unrealized gains (losses) and interest income; • Separate accounts managed by Eagle Point Credit Management, PRIMA Capital Advisors and SKY Harbor Capital Management, which are affiliates of entities owned by Trident, with respect to which we incurred management fees; • Investments in funds (carried within other investments) managed by Sound Point Capital, an entity in which Mr. Carey has an indirect minority ownership interest and serves as a director, with respect to which we recognized net unrealized gains (losses); • Sound Point Capital has acted as collateral manager for certain of our direct investments in CLO debt and equity securities, with respect to which we recognized net unrealized gains (losses) and interest income; • Marble Point Capital, which is an affiliate of an entity owned by Trident, has acted as collateral manager for certain of our direct investments in CLO debt and equity securities, with respect to which we recognized net unrealized gains (losses) and interest income; • In the fourth quarter of 2018, we invested $25.0 million in Mitchell TopCo Holdings, the parent company of Mitchell International ("Mitchell") and Genex Services, as a co-investor alongside certain Trident funds. Mitchell provides third-party outsourcing managed care services to one of our subsidiaries in the ordinary course of its business; and • In the second quarter of 2020, we invested $10.0 million in a 2-year senior secured unrated floating rate term loan facility with an extension option which was arranged and managed by Sound Point Capital. The facility's borrower, Amplify U.S. Inc., is a subsidiary of Evergreen (as defined below) and has used the proceeds to purchase AmTrust's preferred stock. The facility ranks senior to all other claims of the borrower, the purchased preferred stock and cash flows therefrom serve as collateral, and AmTrust has provided an unsecured guarantee for the facility. The term loan facility was fully repaid in June 2021. For further information on our relationships with Evergreen and AmTrust, refer to the AmTrust section below. The following table presents the amounts included in our condensed consolidated balance sheet related to our related party transactions with Stone Point and its affiliated entities: June 30, 2021 December 31, 2020 Short-term investments, AFS, at fair value $ — $ 878 Fixed maturities, trading, at fair value 142,736 196,086 Fixed maturities, AFS, at fair value 291,924 227,397 Equities, at fair value 134,178 103,914 Other investments, at fair value: Hedge funds — 19,844 Fixed income funds 230,341 210,017 Private equity funds 52,811 37,262 CLO equities 36,032 38,658 CLO equity funds 189,793 166,523 Private Debt 18,950 27,016 Real estate fund 29,855 27,278 Total investments 1,126,620 1,054,873 Cash and cash equivalents 13,635 23,933 Other assets 1,971 403 Other liabilities 1,515 745 Net investment $ 1,140,711 $ 1,078,464 As of June 30, 2021, we had unfunded commitments of $203.2 million to other investments, $38.0 million to privately held equity and $21.0 million to fixed maturity investments managed by Stone Point and its affiliated entities. The following table presents the amounts included in net earnings related to our related party transactions with Stone Point and its affiliated entities: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net investment income $ 4,416 $ 4,793 $ 4,878 $ 8,877 Net realized and unrealized gains (losses) 22,318 29,729 47,232 (72,787) Total net earnings (losses) $ 26,734 $ 34,522 $ 52,110 $ (63,910) We have historically made significant direct investments in funds (the "Hillhouse Funds") managed by Hillhouse Capital Management, Ltd. and Hillhouse Capital Advisors, Ltd. (together, "Hillhouse Group") and AnglePoint Asset Management Ltd., an affiliate of Hillhouse Group ("AnglePoint Cayman"). On February 21, 2021, we entered into a Termination and Release Agreement (the "TRA") with the InRe Fund, Hillhouse Group, AnglePoint Cayman, AnglePoint Asset Management Limited (“AnglePoint HK”), and InRe Fund GP, Ltd. (“InRe GP”) pursuant to which we agreed to terminate certain relationships with Hillhouse and its affiliates, primarily with respect to the InRe Fund. In connection with AnglePoint Cayman ceasing to serve as investment manager of the InRe Fund, affiliates of Hillhouse Group agreed to a deduction of $100.0 million from amounts due to them from the InRe Fund and to waive their right to receive any performance fees that could have been earned for 2021. We also redeemed our investments in the other Hillhouse Funds at their carrying value plus an implied interim return and received $381.3 million in the form of additional interest in the InRe Fund. AnglePoint Cayman previously received sub-advisory services with respect to InRe Fund from its affiliate, AnglePoint HK, an investment advisory company licensed by the Securities and Futures Commission in Hong Kong. Pursuant to the TRA, we acquired an option to buy AnglePoint HK, which we also had the right to assign to a third-party. On April 1, 2021, we entered into a Designation Agreement with Jie Liu (the "Designation Agreement"), pursuant to which we designated Mr. Liu, an AnglePoint HK partner, as the purchaser of AnglePoint HK, and he acquired the company from an affiliate of Hillhouse Group on the same day. AnglePoint Cayman simultaneously assigned its investment management agreement with InRe Fund to AnglePoint HK. The Designation Agreement requires us and AnglePoint HK to amend the InRe Fund investment management agreement and limited partnership agreement to incorporate a revised fee structure for AnglePoint HK and certain other agreed changes. The InRe Fund, qualifies as a variable interest entity and was consolidated effective April 1, 2021, refer to Note 11 - "Variable Interest Entities" for additional information. As a result, the InRe Fund ceased to be a related party on the same date. As of December 31, 2020, the carrying value (i.e., the net asset value) of our direct investment in the InRe Fund, which was then managed by AnglePoint Cayman, was $2.4 billion. Hillhouse Group and AnglePoint Cayman charged investment management and performance fees to funds they manage, which are deducted from the Hillhouse Funds’ reported net asset values. For the full year ended December 31, 2020, we incurred management and performance fees of $489.0 million. This amount has been revised from $394.0 million disclosed in our 2020 Annual Report on Form 10-K to correct management and performance fees for full year 2020. This correction has no impact on our consolidated financial statements and is not considered material to previously issued financial statements. As of June 30, 2021, our equity method investee, Enhanzed Re, had investments in a fund managed by AnglePoint Cayman, as set forth in the table below. Our condensed consolidated balance sheet included the following balances related to transactions with Hillhouse Group and its affiliates (as applicable): June 30, 2021 December 31, 2020 Investments in funds managed by AnglePoint Cayman, held by Enhanzed Re $ 12,954 $ 851,435 Our ownership percentage of Enhanzed Re 47.4 % 47.4 % Our share of Enhanzed Re's investment in funds managed by AnglePoint Cayman held by Enhanzed Re (through our equity method investment ownership) $ 6,140 $ 403,580 Investment in other funds managed by Hillhouse Group and its affiliates: InRe Fund (1) $ 2,365,158 Other funds $ — 369,508 $ — $ 2,734,666 (1) Effective April 1, 2021, AnglePoint HK assumed the role of manager of the InRe Fund as described above, refer to AnglePoint HK disclosures below. During the second quarter of 2021, Enhanzed Re redeemed $902.2 million of their investments in funds managed by AnglePoint Cayman. The following table presents the amounts included in net earnings related to our related party transactions with Hillhouse Group and its affiliates: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 InRe Fund (1) (2) $ — $ 365,054 $ 76,607 $ 320,196 Other Funds — 55,230 20,871 35,184 Net realized and unrealized gains $ — $ 420,284 $ 97,478 $ 355,380 (1) Effective April 1, 2021, AnglePoint HK assumed the role of manager of the InRe Fund as described above, refer to AnglePoint HK disclosures below. (2) The six months ended June 30, 2021, includes the impact of a deduction of $100.0 million from amounts due to affiliates of Hillhouse Group from the InRe Fund, which had the effect of increasing our NAV in the InRe Fund on February 21, 2021. Refer to Note 23 - "Subsequent Events" for additional information related to transactions with Hillhouse Group subsequent to June 30, 2021. AnglePoint HK As of June 30, 2021, the carrying value (i.e., the net asset value) of our direct investment in the InRe Fund, L.P. (the "InRe Fund"), which is managed by AnglePoint HK (defined and discussed above), was $2.2 billion. The following table presents the amounts included in net earnings related to our related party transactions with AnglePoint HK (as applicable): Three and Six Months Ended June 30, 2021 Net investment expenses (1) $ (20,171) Net realized and unrealized gains 216,730 $ 196,559 (1) The InRe Fund net investment expenses primarily include management and performance fee accruals which were previously included in the change in NAV and included within net realized and unrealized gains prior to consolidation of the fund. Northshore Following the completion of the Exchange Transaction with the Stone Point managed Trident V Funds on January 1, 2021 as described in Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations", our equity interest in Northshore, the holding company that owns Atrium and Arden was reduced to 13.8% from 54.1% while the Trident V Funds' total equity interest in Northshore increased from 36.0% to 76.3%. We have accounted for our residual equity interest in Northshore as an investment in a privately held equity security at fair value. The carrying value of our investment in Northshore was $34.0 million as of June 30, 2021. Concurrent with the closing of the Exchange Transaction on January 1, 2021, one of our wholly-owned subsidiaries and Northshore entered into a TSA through which our wholly-owned subsidiary agreed to provide certain transitional services to Northshore over a transition period of up to 18 months. In addition, concurrent with the completion of the Exchange Transaction on January 1, 2021, Arden also entered into an LPT Retrocession Agreement with one of our majority owned subsidiaries, through which Arden fully reinsured its non-life run-off portfolio with total liabilities of $19.0 million to our majority owned subsidiary, in exchange for a retrocession premium consideration of an equal amount. Arden retained the premium under a funds held arrangement, to secure the payment obligations of our majority owned subsidiary. Our condensed consolidated balance sheet included the following balances between us and Arden: June 30, 2021 Balances under LPT Retrocession Agreement: Premiums Receivable $ 13,185 Loss and loss adjustment expenses 12,921 Our condensed consolidated statement of earnings included the following amounts between us and Arden: Three Months Ended Six Months Ended June 30, June 30, 2021 2021 Transactions under LPT Retrocession Agreement: Net incurred losses and LAE $ 28 $ 346 Interest expense (83) (83) Total net earnings (loss) $ (55) $ 263 Furthermore, as described in Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations", through our wholly-owned subsidiary SGL No.1, a Lloyd’s corporate member, we provided 25% of the underwriting capacity on the 2017 to 2020 underwriting years of Atrium's Syndicate 609 at Lloyd’s. Effective January 1, 2021, and in conjunction with the completion of the Exchange Transaction, SGL No.1 ceased its provision of underwriting capacity on Syndicate 609. Accordingly, the 2020 underwriting year was the last underwriting year that SGL No. 1 participated in with respect to the Atrium business. We will continue to report SGL No. 1's 25% gross share of the 2020 and prior underwriting years of Syndicate 609 until the 2020 underwriting year completes an RITC into a successor year, which will be no earlier than December 31, 2022. December 31, 2020 Distributions of SGL No.1 Share of Syndicate 609 results 19,115 Due to Arden under reinsurance agreement (7,965) Due to Atrium 5 limited under capacity lease agreement (11,150) Net balances with Northshore Group — There is no net retention for Enstar on Atrium's 2020 and prior underwriting years as the business was contractually transferred to the Atrium entities that were divested in the Exchange Transaction. Effective January 1, 2021, all balances that SGL No. 1 has with Atrium and Arden are no longer eliminated in our condensed consolidated financial statements. Our condensed consolidated balance sheet includes the following balances related to our participation in Atrium's Syndicate 609 through our wholly-owned subsidiary SGL 1. The balances are disclosed on a gross basis and therefore include the reinsurance balances recoverable from Arden under a quota share reinsurance agreement as well as the net results arising from our participation which is payable by SGL 1 to Atrium under a capacity lease tenancy agreement as described further below: June 30, 2021 Balances under quota share agreement Short-term investments, trading, at fair value $ — Fixed maturities, trading, at fair value 165,717 Fixed maturities, available-for-sale, at fair value 1,102 Other investments, at fair value 12,153 Cash and cash equivalents 24,654 Restricted cash and cash equivalents 4,626 Premiums receivable 18,408 Reinsurance balances recoverable on paid and unpaid losses 76,670 Funds held by reinsured companies 31,555 Other assets 41,657 Losses and loss adjustment expenses 240,910 Insurance and reinsurance balances payable 87,240 Other liabilities 48,286 Balances under lease capacity agreement Other liabilities 12,782 Our condensed consolidated statement of earnings included the following amounts related to our participation in Atrium's Syndicate 609 through our wholly-owned subsidiary SGL 1. These amounts reflect the impact of cessions by SGL 1 to Arden under a quota share reinsurance agreement with the net results arising from our participation being payable by SGL 1 to Atrium under a capacity lease tenancy agreement as described further below: Three Months Ended Six Months Ended June 30, June 30, 2021 2021 Transactions under quota share agreement Net premiums earned $ 17,240 $ 37,280 Net investment income 288 1,046 Net realized and unrealized gains (losses) 210 (1,099) Other income 1,282 1,282 Net incurred losses and loss adjustment expenses (10,281) (14,759) Acquisition costs (4,922) (9,899) General and administrative expenses (1,418) (3,502) Transactions under lease capacity agreement Other expense $ (3,831) $ (10,349) Total net earnings $ (1,432) $ — As discussed above, Enstar does not retain any of the economics related to its participation in Atrium's 2020 and prior underwriting years through its wholly-owned subsidiary SGL 1 since this business is contractually transferred to the Atrium entities that were divested in the Exchange Transaction, through a quota share reinsurance agreement with Arden covering 65% of the business written by Atrium's Syndicate 609 and a capacity lease tenancy Our investment in the common and preferred shares of Monument Re, which is included in equity method investments on our condensed consolidated balance sheet, as of June 30, 2021 and December 31, 2020 was $204.3 million and $193.7 million, respectively. During the three months ended June 30, 2021 and 2020 our share of net earnings (loss) on our investment in Monument Re was $1.9 million and $(0.1) million, respectively. During the six months ended June 30, 2021 and 2020 our share of net earnings (loss) on our investment in Monument Re was $16.7 million and $(1.5) million, respectively. In addition, one of our representatives serves on Monument Re's board of directors. During the three and six months ended June 30, 2021 and 2020 we received director fees from Monument of $0.1 million (three and six months ended June 30, 2020: $0). Refer to Note 23 - "Subsequent Events" for additional information related to transactions with Monument Re subsequent to June 30, 2021. Clear Spring (formerly SeaBright) Effective January 1, 2017, we sold SeaBright Insurance Company (“SeaBright Insurance”) to Clear Spring PC Acquisition Corp., a subsidiary of Delaware Life Insurance Company ("Delaware Life"). Following the sale, SeaBright Insurance was capitalized with $56.0 million of equity, with Enstar retaining a 20% indirect equity interest in SeaBright Insurance. Subsequently, SeaBright Insurance was renamed Clear Spring Property and Casualty Company ("Clear Spring"). Effective December 30, 2020, we sold our remaining interest in Clear Spring to Delaware Life for $12.2 million and recorded a gain on sale of $0.6 million in the fourth quarter of 2020. As a result, Clear Spring was not a related party as of December 31, 2020. Prior to the sale, we accounted for our equity interest in Clear Spring as an equity method investment as we had significant influence over its operating and financial policies. During the three and six months ended June 30, 2020 our share of net losses on our investment in Clear Spring was $0.6 million and $0.2 million. Effective January 1, 2017, StarStone National Insurance Company (“StarStone National”) entered into a ceding quota share treaty with Clear Spring pursuant to which Clear Spring reinsures 33.3% of core workers' compensation business written by StarStone National. This agreement was terminated as of December 31, 2018. Effective January 1, 2017, we also entered into an assuming quota share treaty with Clear Spring pursuant to which an Enstar subsidiary reinsures 25% of all workers' compensation business written by Clear Spring. Our consolidated statement of earnings included the following amounts between us and Clear Spring: Three Months Ended Six Months Ended June 30, June 30, 2020 2020 Transactions under StarStone ceding quota share, included in net loss from discontinued operations: Ceded premium earned $ 682 $ 1 Net incurred losses and LAE (2,043) (1,289) Acquisition costs (99) (27) Transactions under assuming quota share: Premium earned (170) — Net incurred losses and LAE 510 882 Acquisition costs 20 7 Total net earnings $ (1,100) $ (426) AmTrust In November 2018, pursuant to a Subscription Agreement with Evergreen Parent L.P. ("Evergreen"), K-Z Evergreen, LLC and Trident Pine Acquisition LP ("Trident Pine"), we purchased equity in Evergreen in the aggregate amount of $200.0 million. Evergreen is an entity formed by private equity funds managed by Stone Point and the Karfunkel-Zyskind Family that acquired the 45% of the issued and outstanding shares of common stock of AmTrust that the Karfunkel-Zyskind Family and certain of its affiliates and related parties did not already own or control. The equity interest was in the form of equity securities issued at the same price and in the same proportion as the equity interest purchased by Trident Pine. In a second transaction in December 2019, Enstar acquired an additional $25.9 million of Evergreen securities from another investor. Following the closing of the second transaction, Enstar owns 8.4% of the equity interest in Evergreen and Trident Pine owns 21.8%. Evergreen owns all of the equity interest in AmTrust. In addition, upon the successful closing of the transaction we received a fee of $3.3 million, half of which was received upon closing, and the other half was received on the first anniversary of the closing. The fee was recorded in full in other income within our consolidated statements of earnings for the year ended December 31, 2018. Our indirect investment in the shares of AmTrust, carried in equities on our condensed consolidated balance sheet, as of June 30, 2021 and December 31, 2020 was $227.4 million and $230.3 million, respectively. The following table presents the amounts included in net earnings related to our related party transactions with AmTrust (excluding withholding taxes): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net investment income $ 1,493 $ 1,896 $ 2,986 $ 4,367 Net realized and unrealized gains (losses) (1,453) 3,954 (2,945) 3,809 Total net earnings $ 40 $ 5,850 $ 41 $ 8,176 In June 2018, we made a $50.0 million indirect investment in the shares of Citco III Limited ("Citco"), a fund administrator with global operations. As of June 30, 2021 and December 31, 2020, we owned 31.9% of the common shares in HH CTCO Holdings Limited, which in turn owns 15.4% of the convertible preferred shares, amounting to a 6.2% interest in the total equity of Citco. Pursuant to an investment agreement and in consideration for participation therein, a related party of Hillhouse Group provided us with investment support. In a private transaction that preceded our co-investment opportunity, certain Citco shareholders, including Trident, agreed to sell all or a portion of their interests in Citco. As of June 30, 2021 and December 31, 2020, Trident owned 3.4% interest in Citco. Mr. Carey currently serves as an observer to the board of directors of Citco in connection with Trident's investment therein. Our indirect investment in the shares of Citco, which is included in equity method investments on our condensed consolidated balance sheet, as of June 30, 2021 and December 31, 2020 was $54.1 million and $53.0 million, respectively. During the three months ended June 30, 2021 and 2020 our share of net earnings on our indirect investment in Citco was $0.7 million and $0.5 million, respectively. During the six months ended June 30, 2021 and 2020 our share of net earnings on our indirect investment in Citco was $1.4 million and $0.3 million, respectively. Enhanzed Re is a joint venture between Enstar, Allianz SE ("Allianz") and Hillhouse Group that was capitalized in December 2018. Enhanzed Re is a Bermuda-based Class 4 and Class E reinsurer that reinsures life, non-life run-off, and property and casualty insurance business, initially sourced from Allianz and Enstar. Enstar, Allianz and Hillhouse Group affiliates have made equity investment commitments in the aggregate of $470.0 million to Enhanzed Re. Enstar owns 47.4% of the entity, Allianz owns 24.9%, and an affiliate of Hillhouse Group owns 27.7%. As of June 30, 2021, Enstar contributed $154.1 million of its total capital commitment to Enhanzed Re and had an uncalled amount of $68.7 million. We have accounted for our equity interest in Enhanzed Re as an equity method investment as we have significant influence over its operating and financial policies. Enstar acts as the (re)insurance manager for Enhanzed Re, for which it receives fee income recorded within fees and commission income, AnglePoint Cayman previously acted as the primary investment manager, and an affiliate of Allianz provides investment management services. Enhanzed Re writes business from affiliates of its operating sponsors, Allianz SE and Enstar. Our investment in the common shares of Enhanzed Re, which is included in equity method investments on our condensed consolidated balance sheet, as of June 30, 2021 and December 31, 2020 was $434.0 million and $330.3 million, respectively. During the three months ended June 30, 2021 and 2020 our share of net loss on our investment in Enhanzed Re was $1.9 million and $8.3 million, respectively. During the six months ended June 30, 2021 and 2020 our share of net earnings on our investment in Enhanzed Re was $103.7 million and $5.9 million, respectively. We have ceded 10% of the 2019 Zurich transaction, the 2020 AXA Group transaction and the 2021 Liberty Mutual and CNA transactions, which are described in Note 2 - "Significant New Business," to Enhanzed Re on the same terms and conditions as those received by Enstar. During the fourth quarter of 2020, one of our UK-based Run-off subsidiaries entered into a 50% Quota Share reinsurance agreement with Enhanzed Re. The reinsurance is on a funds held basis with fixed crediting rates. . Our condensed consolidated balance sheet included the following balances between us and Enhanzed Re: June 30, 2021 December 31, 2020 Balances under ceding quota share: Reinsurance balances recoverable $ 226,003 $ 208,379 Funds held 242,483 193,981 Insurance balances payables 1,560 1,276 Other assets 7,767 730 Our condensed consolidated statement of earnings included the following amounts between us and Enhanzed Re: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Amounts under ceding quota share: Ceded premium earned $ (1,510) $ — $ (1,641) $ — Fees and commission income 117 — 233 — Net investment expense (1,280) — (2,437) — Net realized and unrealized gains 149 — 132 — Other income (expense) 735 (3,172) 1,462 (2,881) Net incurred losses and LAE 1,319 (13) 1,054 (13) Acquisition costs 368 — 373 23 Total net loss $ (102) $ (3,185) $ (824) $ (2,871) Change in unrealized losses on AFS investments (665) — (1,288) — Core Specialty Following the sale and recapitalization of StarStone U. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 21. COMMITMENTS AND CONTINGENCIES Concentration of Credit Risk We believe that there are no significant concentrations of credit risk associated with our cash and cash equivalents, fixed maturity investments, or other investments. Our cash and investments are managed pursuant to guidelines that follow prudent standards of diversification and liquidity, and limit the allowable holdings of a single issue and issuers. We are also subject to custodial credit risk on our investments, which we manage by diversifying our holdings amongst large financial institutions that are highly regulated. We have exposure to credit risk on certain of our assets pledged to ceding companies under insurance contracts. In addition, we are potentially exposed should any insurance intermediaries be unable to fulfill their contractual obligations with respect to payments of balances owed to and by us. Credit risk exists in relation to (re)insurance balances recoverable on paid and unpaid losses. We remain liable to the extent that counterparties do not meet their contractual obligations and, therefore, we evaluate and monitor concentration of credit risk among our (re)insurers. We are also subject to credit risk in relation to funds held by reinsured companies. Under funds held arrangements, the reinsured company has retained funds that would otherwise have been remitted to our reinsurance subsidiaries. The funds may be placed into trust or subject to other security arrangements. However, we generally have the contractual ability to offset any shortfall in the payment of the funds held balances with amounts owed by us. As of June 30, 2021, we had a significant funds held concentration of $909.5 million (December 31, 2020: $955.0 million) to one reinsured company which has financial strength credit ratings of A+ from A.M. Best and AA from S&P. We limit the amount of credit exposure to any one counterparty, and none of our counterparty credit exposures, excluding U.S. government instruments and the counterparty noted above, exceeded 10% of shareholders’ equity as of June 30, 2021. Our credit exposure to the U.S. government was $1.2 billion as of June 30, 2021 (December 31, 2020: $1.4 billion). For additional information relating to credit risk for the InRe Fund, refer to Note 11 - "Variable Interest Entities." Legal Proceedings We are, from time to time, involved in various legal proceedings in the ordinary course of business, including litigation and arbitration regarding claims. Estimated losses relating to claims arising in the ordinary course of business, including the anticipated outcome of any pending arbitration or litigation, are included in the liability for losses and LAE in our condensed consolidated balance sheets. In addition to claims litigation, we may be subject to other lawsuits and regulatory actions in the normal course of business, which may involve, among other things, allegations of underwriting errors or omissions or bad faith, employment claims or regulatory activity. We do not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material effect on our business, results of operations or financial condition. We anticipate that, similar to the rest of the (re)insurance industry, we will continue to be subject to litigation and arbitration proceedings in the ordinary course of business, including litigation generally related to the scope of coverage with respect to asbestos and environmental and other claims. Unfunded Investment Commitments As of June 30, 2021, we had unfunded commitments of $1.4 billion to other investments, $68.7 million to equity method investments, $48.1 million to privately held equity and $21.0 million to fixed maturity investments. Guarantees As of June 30, 2021 and December 31, 2020, parental guarantees and capital instruments supporting subsidiaries' (re)insurance obligations were $2.1 billion and $1.7 billion, respectively. We also guarantee the Junior Subordinated Notes, which are described in Note 14 - "Debt Obligations and Credit Facilities." Redeemable Noncontrolling Interest We have the right to purchase the RNCI interests from the RNCI holders at certain times in the future (each such right, a "call right") and the RNCI holders have the right to sell their RNCI interests to us at certain times in the future (each such right, a "put right"). Following the closing of the Exchange Transaction, we have a call right over the portion of SSHL owned by the Trident V Funds and the Dowling Funds, and they have put rights to transfer those interests to us. Leases We have recognized a right-of-use asset and an offsetting lease liability on our condensed consolidated balance sheets, relating primarily to office space and facilities that we have leased to conduct our business operations. On an ongoing basis we determine whether an arrangement is a lease or contains a lease at inception and also complete an assessment to determine the classification of each lease as either a finance lease or an operating lease. Our leases are all currently classified as operating leases. Our leases have remaining lease terms of one year to 36 years; some of which include options to extend the lease term for up to five years, and some of which include options to terminate the lease within one year. We consider these options in determining the lease term used to establish our right-of-use assets and lease liabilities. Renewal options that we believe we are likely to exercise are considered when determining lease terms. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Since a majority of our leases do not provide an implicit discount rate, we use our collateralized incremental borrowing rate in determining the present value of lease payments. The table below provides the lease cost and other information relating to our operating leases: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Lease cost: Operating lease cost $ 2,022 $ 3,202 $ 4,134 $ 6,524 Short-term lease cost (1) — 61 4 119 Total lease cost 2,022 3,263 4,138 6,643 Sub-lease income (2) (473) (138) (1,027) (276) Total net lease cost $ 1,549 $ 3,125 $ 3,111 $ 6,367 Other information: Operating cash paid for amounts included in the measurement of lease liabilities $ 1,937 $ 4,145 $ 4,047 $ 7,328 Non-cash activity: right-of-use assets relating to leases (139) 191 (504) 263 Weighted-average remaining lease term 6.4 years 6.2 years Weighted-average discount rate 6.8 % 6.3 % (1) Leases with an initial lease term of twelve months or less are not recognized within our condensed consolidated balance sheets. (2) Sub-lease income consists of rental income received from third parties to whom we have sub-leased some of our leased office spaces and is included within other income in our consolidated statements of earnings. The table below provides a summary of the operating leases recorded on our condensed consolidated balance sheets: Balance sheet classification June 30, 2021 December 31, 2020 Right-of-use assets (1) Other assets $ 22,219 $ 32,297 Current lease liabilities (1) Other liabilities 6,047 7,959 Non-current lease liabilities (1) Other liabilities 19,122 27,064 (1) The December 31, 2020 right-of-use assets and the total lease liability balances exclude balances of $1.0 million related to Atrium which were reclassified to held-for-sale balances on our condensed consolidated balance sheet as of December 31, 2020. The table below provides a summary of the contractual maturities of our operating lease liabilities: 2021 2022 2023 2024 2025 2026 and beyond Total lease payments Less: Imputed interest Present value of lease liabilities Contractual maturities $ 4,230 6,580 5,703 4,047 3,165 8,651 32,376 (7,207) $ 25,169 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 22. SEGMENT INFORMATION During the first quarter of 2021, we revised our segment structure to align with how our chief operating decision maker ("CODM"), who was determined to be our Chief Executive Officer, views our business, assesses performance and allocates resources to our business components. Effective January 1, 2021, our business is organized into three reportable segments: (i) Run-off: consists of our acquired property and casualty and other (re)insurance business and StarStone International (from January 1, 2021) following our decision to place it into an orderly run-off. This segment also includes our consulting and management business, which manages the run-off portfolios of third parties through our service companies. Management’s primary objective with respect to the Run-off segment is to generate reserve/claims savings over time by settling claims in a timely, cost efficient manner using our claims management expertise including settling claims for lower than outstanding ultimate loss estimates and implementation of reinsurance and commutation strategies; (ii) Investments: consists of our investment activities and the performance of our investment portfolio, excluding those investable assets attributable to our Legacy Underwriting segment. Management’s primary objective of the Investments segment is to obtain the highest possible risk and capital adjusted returns while maintaining prudent diversification of assets and operating within the constraints of a global regulated (re)insurance company. We additionally consider the liquidity requirements and duration of our claims and contract liabilities; and (iii) Legacy Underwriting: consists of businesses that we have either, in the case of Atrium, exited via the sale of the majority of our interest in or, in the case of StarStone International (included in the Legacy Underwriting Segment through December 31, 2020), placed into run-off. Prior to January 1, 2021, this segment comprised SGL No. 1's 25% net share of Atrium's Syndicate 609 business at Lloyd's and StarStone International (through December 31, 2020). From January 1, 2021, this segment comprises SGL No.1's 25% gross share of the 2020 and prior underwriting years of Atrium's Syndicate 609 at Lloyd's, offset by the contractual transfer of the results of that business to the Atrium entities that were divested in the Exchange Transaction. There is no net retention for Enstar on Atrium's 2020 and prior underwriting years. For further information on the Exchange Transaction and the StarStone International Run-off, refer to Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations." In addition, our corporate and other activities, which do not qualify as an operating segment, includes income and expense items that are not directly attributable to our reportable segments. These include, (a) holding company income and expenses, (b) the amortization of deferred charge assets and deferred gain liabilities on retroactive reinsurance contracts, (c) the amortization of fair value adjustments associated with the acquisition of companies, (d) changes in the fair value of assets and liabilities related to our assumed retroactive reinsurance contracts for which we have elected the fair value option, (e) corporate expenses not allocated to our reportable segments, (f) debt servicing costs, (g) net foreign exchange (gains) losses, (h) gains (losses) arising on sales of subsidiaries (if any), (i) income tax benefit (expense), (j) net earnings (losses) from discontinued operations, net of income tax (if any), (k) net (earnings) loss attributable to noncontrolling interest, and (l) preferred share dividends. Items (b), (c) and (d) highlighted above are included within corporate and other activities since the CODM evaluates the performance of the Run off and Legacy Underwriting segments without consideration of these amounts. Refer to "(p) Acquisitions, Goodwill and Intangible Assets" and "(q) Retroactive Reinsurance" within Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further information. Our assets are reviewed on a consolidated basis by management for decision making purposes since they support business operations across all of our three reportable segments as well as our corporate & other activities. We do not allocate assets and liabilities to our reportable segments with the exception of liabilities for losses and loss adjustment expenses, reinsurance balances recoverable on paid and unpaid losses and goodwill that are directly attributable to our reportable segments. Expenses that are directly attributable to our three reportable segments are disclosed under those segments while non-direct expenses, as well as costs related to shared services that are not directly attributable to our reportable segments, are allocated to our reportable segments as well as to our corporate and other activities, on the basis of the actual or proportion of benefit derived from the services provided. Following the re-organization of our reportable segments during the first quarter of 2021 as detailed above, we restated the prior period comparatives to conform to the current period presentation. Three Months Ended June 30, 2021 Run-off Investments Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 42,404 $ — $ 17,240 $ — $ 59,644 Fees and commission income 8,274 — — — 8,274 Net investment income — 75,859 288 — 76,147 Net realized and unrealized gains — 405,010 210 — 405,220 Other income (expense) 5,196 — (2,549) (6,006) (3,359) 55,874 480,869 15,189 (6,006) 545,926 EXPENSES Net incurred losses and loss adjustment expenses (16,997) — 10,281 46,020 39,304 Acquisition costs 34 — 4,922 — 4,956 General and administrative expenses (2) 64,138 12,303 1,418 14,858 92,717 47,175 12,303 16,621 60,878 136,977 EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES 8,699 468,566 (1,432) (66,884) 408,949 Loss from equity method investments — (3,059) — — (3,059) SEGMENT INCOME (LOSS) 8,699 465,507 (1,432) (66,884) 405,890 Interest expense (16,301) (16,301) Net foreign exchange gains 9,139 9,139 Income tax expense (9,422) (9,422) NET EARNINGS 389,306 Net earnings attributable to noncontrolling interest (3,055) (3,055) NET EARNINGS ATTRIBUTABLE TO ENSTAR 386,251 Dividends on preferred shares (8,925) (8,925) NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS $ (95,448) $ 377,326 (1) Other income (expense) for corporate and other activities includes the amortization of fair value adjustments associated with the acquisition of DCo and Morse TEC. Net incurred losses and loss adjustment expenses for corporate and other activities includes the amortization of deferred charge assets and deferred gain liabilities on retroactive reinsurance contracts and fair value adjustments associated with the acquisition of companies and the changes in the fair value of liabilities related to our assumed retroactive reinsurance agreements for which we have elected the fair value option. (2) Includes refinement of first quarter 2021 general and administrative expense allocations which increased/(decreased) general and administrative expenses of the Run-off and Investments segments by $16.3 million and $2.6 million, respectively, as well as corporate and other activities by $(18.9) million. Three Months Ended June 30, 2020 Run-off Investments Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 10,517 $ — $ 132,354 $ — $ 142,871 Fees and commission income 3,966 — 6,044 — 10,010 Net investment income — 86,263 8,180 — 94,443 Net realized and unrealized gains — 926,494 41,114 — 967,608 Other income (expense) 899 — 30 (2,016) (1,087) 15,382 1,012,757 187,722 (2,016) 1,213,845 EXPENSES Net incurred losses and loss adjustment expenses (60,249) — 95,382 151,559 186,692 Acquisition costs 3,589 — 45,478 — 49,067 General and administrative expenses (2) 52,466 10,704 70,062 11,598 144,830 (4,194) 10,704 210,922 163,157 380,589 EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES 19,576 1,002,053 (23,200) (165,173) 833,256 Loss from equity method investments — (8,790) — — (8,790) SEGMENT INCOME (LOSS) 19,576 993,263 (23,200) (165,173) 824,466 Interest expense (14,018) (14,018) Net foreign exchange losses (5,158) (5,158) Income tax expense (16,652) (16,652) NET EARNINGS FROM CONTINUING OPERATIONS 788,638 Net loss from discontinued operations, net of income taxes (1,152) (1,152) NET EARNINGS 787,486 Net loss attributable to noncontrolling interest 19,992 19,992 NET EARNINGS ATTRIBUTABLE TO ENSTAR 807,478 Dividends on preferred shares (8,925) (8,925) NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS $ (191,086) $ 798,553 (1) Other income (expense) for corporate and other activities includes the amortization of fair value adjustments associated with the acquisition of DCo and Morse TEC. Net incurred losses and loss adjustment expenses for corporate and other activities includes the amortization of deferred charge assets and deferred gain liabilities on retroactive reinsurance contracts and fair value adjustments associated with the acquisition of companies and the changes in the fair value of liabilities related to our assumed retroactive reinsurance agreements for which we have elected the fair value option. (2) Includes refinement of first quarter 2020 general and administrative expense allocations which increased/(decreased) general and administrative expenses of the Run-off and Investments segments by $13.6 million and $2.5 million, respectively, as well as corporate and other activities by $(16.1) million. Six Months Ended June 30, 2021 Run-off Investments Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 115,240 $ — $ 37,280 $ — $ 152,520 Fees and commission income 17,872 — — — 17,872 Net investment income — 137,190 1,046 — 138,236 Net realized and unrealized gains (losses) — 385,531 (1,099) — 384,432 Other income (expense) 17,511 — (9,067) (11,252) (2,808) Net gain on sales of subsidiaries — — — 14,894 14,894 150,623 522,721 28,160 3,642 705,146 EXPENSES Net incurred losses and loss adjustment expenses (12,372) — 14,759 (18,590) (16,203) Acquisition costs 29,071 — 9,899 — 38,970 General and administrative expenses 91,729 15,843 3,502 64,643 175,717 108,428 15,843 28,160 46,053 198,484 EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES 42,195 506,878 — (42,411) 506,662 Earnings from equity method investments — 114,972 — — 114,972 SEGMENT INCOME (LOSS) 42,195 621,850 — (42,411) 621,634 Interest expense (32,480) (32,480) Net foreign exchange gains 6,505 6,505 Income tax expense (3,440) (3,440) NET EARNINGS 592,219 Net earnings attributable to noncontrolling interest (13,846) (13,846) NET EARNINGS ATTRIBUTABLE TO ENSTAR 578,373 Dividends on preferred shares (17,850) (17,850) NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS $ (103,522) $ 560,523 (1) Other income (expense) for corporate and other activities includes the amortization of fair value adjustments associated with the acquisition of DCo and Morse TEC. Net incurred losses and loss adjustment expenses for corporate and other activities includes the amortization of deferred charge assets and deferred gain liabilities on retroactive reinsurance contracts and fair value adjustments associated with the acquisition of companies and the changes in the fair value of liabilities related to our assumed retroactive reinsurance agreements for which we have elected the fair value option. Six Months Ended June 30, 2020 Run-off Investments Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 26,547 $ — $ 275,675 $ — $ 302,222 Fees and commission income 8,951 — 8,587 — 17,538 Net investment income — 151,226 17,931 — 169,157 Net realized and unrealized gains (losses) — 351,812 (13,265) — 338,547 Other income (expense) 28,662 — 150 (9,455) 19,357 64,160 503,038 289,078 (9,455) 846,821 EXPENSES Net incurred losses and loss adjustment expenses (87,442) — 200,913 116,521 229,992 Acquisition costs 10,496 — 84,614 — 95,110 General and administrative expenses 75,853 14,268 96,120 57,017 243,258 (1,093) 14,268 381,647 173,538 568,360 EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES 65,253 488,770 (92,569) (182,993) 278,461 Earnings from equity method investments — 3,660 — — 3,660 SEGMENT INCOME (LOSS) 65,253 492,430 (92,569) (182,993) 282,121 Interest expense (27,433) (27,433) Net foreign exchange gains 6,781 6,781 Income tax expense (11,380) (11,380) NET EARNINGS FROM CONTINUING OPERATIONS 250,089 Net loss from discontinued operations, net of income taxes (3,221) (3,221) NET EARNINGS 246,868 Net loss attributable to noncontrolling interest 52,714 52,714 NET EARNINGS ATTRIBUTABLE TO ENSTAR 299,582 Dividends on preferred shares (17,850) (17,850) NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS $ (183,382) $ 281,732 (1) Other income (expense) for corporate and other activities includes the amortization of fair value adjustments associated with the acquisition of DCo and Morse TEC. Net incurred losses and loss adjustment expenses for corporate and other activities includes the amortization of deferred charge assets and deferred gain liabilities on retroactive reinsurance contracts and fair value adjustments associated with the acquisition of companies and the changes in the fair value of liabilities related to our assumed retroactive reinsurance agreements for which we have elected the fair value option. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 23. SUBSEQUENT EVENTS Acquisitions Enhanzed Re On July 15, 2021, we entered into an agreement to purchase a Hillhouse Group affiliate's entire 27.7% interest in Enhanzed Re for an estimated purchase price of $228.7 million. The transaction is subject to certain closing adjustments and customary closing conditions, including regulatory approval, and is expected to close in the fourth quarter of 2021. Following the completion of the purchase transaction, our equity interests in Enhanzed Re will increase from 47.4% to 75.1%, with joint venture partner Allianz SE continuing to own the remaining 24.9% and our subsidiary assuming the Hillhouse Group affiliate's remaining outstanding capital commitment of $40.2 million. Following the closing of the purchase, we expect to consolidate Enhanzed Re. Significant New Business The table below sets forth a summary of significant new business that was announced or completed subsequent to June 30, 2021: Transaction Date Transaction Announced or Completed Initial Estimate of Liabilities Assumed Type of Transaction and Primary Nature of Business ProSight Completed on August 4, 2021 $ 500,000 LPT of U.S. discontinued workers' compensation and excess workers' compensation lines of business and ADC on a diversified mix of general liability classes of business RSA Announced on July 27, 2021 97,222 ADC on a diversified mix of commercial and personal insurance lines across the U.K. and Ireland Total $ 597,222 In addition, on July 1, 2021, and effective February 5, 2021, we ceded 10% of CNA transaction, as described in Note 2 - "Significant New Business," to Enhanzed Re, in which we have an investment, on the same terms and conditions as those received by us. Variable Interest Entities InRe Fund In July 2021, we submitted a notice to redeem $700.0 million of our investment in the InRe Fund, which is managed by AnglePoint Asset Management Limited (“AnglePoint HK”). The InRe Fund has available liquidity to meet the redemption request, and we expect to receive the proceeds from this redemption in August 2021. Including the July 2021 redemption, we have redeemed an aggregate of $1.5 billion from the InRe Fund since April 1, 2021, and we continue to evaluate our overall exposure to hedge funds, including the InRe Fund, in the context of our overall investment portfolio. Shareholders' Equity Share Repurchases Subsequent to June 30, 2021, we repurchased 45,311 voting ordinary shares for $10.7 million under the Repurchase Program. On July 15, 2021, we terminated the Repurchase Program. On July 22, 2021, Enstar repurchased 3,749,400 ordinary shares of Enstar held by funds managed by Hillhouse Group for a price of $234.52 per share, totaling $879.3 million in aggregate. The shares represented the Hillhouse funds' entire interest in Enstar, which constituted 16.9% of total ordinary shares and 9.4% of voting ordinary shares. EGL Revolving Credit Facility Subsequent to June 30, 2021, we borrowed an additional $300.0 million under the EGL Revolving Credit Facility, decreasing the unutilized capacity under the facility to $125.0 million. The proceeds were used to fund in part the repurchase of our shares from funds managed by Hillhouse Group and pay associated costs and expenses. Dividends on Preferred Shares On August 4, 2021, we declared $7.0 million and $1.9 million of dividends on the Series D and E Preferred Shares, respectively, to be paid on September 1, 2021 to shareholders of record as of August 15, 2021. Related Party Transactions Monument Re On July 27, 2021, we entered into a subscription agreement with Monument Re and Monument Re’s other common shareholders to subscribe to a newly issued class of Monument Re preferred stock. As part of this agreement, our existing classes of preferred shares in Monument Re (including any accrued unpaid dividends thereon) will be exchanged for the new class of preferred shares. In connection with the transaction we will continue to own 20.0% of the common shares of Monument Re and 13.2% of the new class of preferred shares upon closing on a committed capital basis. The subscription agreement is subject to customary closing conditions including regulatory approvals and amending the existing shareholders’ agreement and bye-laws of Monument Re. A fund managed by Stone Point Capital has agreed to acquire 11.4% of the new class of preferred shares. The transaction is expected to close before the end of the first quarter of 2022. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Preparation | These unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. |
Basis of Consolidation | In the opinion of management, these financial statements reflect all adjustments consisting of normal recurring items considered necessary for a fair presentation under U.S. GAAP. The results of operations for any interim period are not necessarily indicative of results for the full year. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2020. All significant inter-company transactions and balances have been eliminated. In these notes, the terms "we," "us," "our," "Enstar," or "the Company" refer to Enstar Group Limited and its consolidated subsidiaries. |
Reclassifications | During the first quarter of 2021, we revised our segment structure and as a result restated the prior period comparatives to conform with the current period presentation. Refer to Note 22 - "Segment Information" for further information. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Our actual results may differ materially from these estimates. Results of changes in estimates are reflected in earnings in the period in which the change is made. Accounting policies that we believe are most dependent on assumptions and estimates are considered to be our critical accounting policies and are related to the determination of: • liability for losses and loss adjustment expenses ("LAE"); • reinsurance balances recoverable on paid and unpaid losses; • defendant asbestos and environmental liabilities and related insurance balances recoverable; • valuation allowances on reinsurance balances recoverable and deferred tax assets; • impairment charges, including credit allowances on investment securities classified as available-for-sale ("AFS"), and impairments on deferred charge assets; • gross and net premiums written and net premiums earned; • fair value measurements of investments; • fair value estimates associated with accounting for acquisitions; • fair value estimates associated with loss portfolio transfer reinsurance agreements for which we have elected the fair value option; and • redeemable noncontrolling interests. |
New Accounting Standards Adopted in 2021 and Recently Issued Accounting Pronouncements Not Yet Adopted | New Accounting Standards Adopted in 2021 Accounting Standards Update ("ASU") 2020-08 – Codification Improvements to Subtopic 310-20 - Receivables - Nonrefundable Fees and Other Costs In October 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-08 to clarify that an entity should re-evaluate whether a callable debt security is within the scope of Accounting Standards Codification ("ASC") 310-20-35-33 during each reporting period and accelerate amortization of the premium associated with the callable debt to the earliest call date. All entities are required to apply the amendments in this ASU on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The adoption of ASU 2020-08 did not have a material impact on our condensed consolidated financial statements and the related disclosures. ASU 2020-06 – Accounting for Convertible Instruments and Contracts in an Entity's Own Equity In August 2020, the FASB issued ASU 2020-06, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. For convertible instruments, the ASU eliminates two of the three accounting models in ASC 470-20 that require separate accounting for embedded conversion features. The ASU also simplifies an issuer's application of the derivatives scope exception in ASC 815-40 for contracts in its own equity and removes some of the conditions that preclude a freestanding contract from being classified in equity, thereby allowing more of such contracts to qualify for equity classification. We early adopted the amendments in ASU 2020-06 as of January 1, 2021 and that adoption did not have an impact on our condensed consolidated financial statements and the related disclosures. ASU 2020-01 - Clarifying the Interactions between ASC 321, ASC 323 and ASC 815 In January 2020, the FASB issued ASU 2020-01 to clarify the interaction of the accounting for equity securities under ASC 321 and investments accounted for under the equity method of accounting in ASC 323 and the accounting for certain forward contracts and purchased options accounted for under ASC 815. With respect to the interactions between ASC 321 and ASC 323, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting when applying the measurement alternative in ASC 321, immediately before applying or upon discontinuing the equity method of accounting. With respect to forward contracts or purchased options to purchase securities, the amendments clarify that when applying the guidance in ASC 815-10-15-141(a), an entity should not consider whether upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in ASC 323 or the fair value option in accordance with ASC 825. The adoption of ASU 2020-01 did not have an impact on our condensed consolidated financial statements and disclosures. ASU 2019-12 - Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12 which removes certain exceptions for (1) recognizing deferred taxes for investments, (2) performing intraperiod tax allocation, and (3) calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating income taxes to a legal entity that is not subject to income taxes. The adoption of ASU 2019-12 did not have any impact on our condensed consolidated financial statements and disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted Note 2 - "Significant Accounting Policies" to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 describes accounting pronouncements that were not adopted as of December 31, 2020. Those pronouncements have not yet been adopted unless discussed above in "New Accounting Standards Adopted in 2021." In addition, the following accounting pronouncement was issued by the FASB during the three months ended June 30, 2021 and is yet to be adopted. ASU 2021-04 - Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity - Classified Written Call Options In May 2021, the FASB issued ASU 2021-04 which requires issuers to account for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after the modification or exchange based on the economic substance of the modification or exchange. Under the ASU, an issuer considers the facts and circumstances of a modification or exchange and accounts for the resulting change in fair value of the written call option based on whether the transaction was done to issue equity, to issue or modify debt, or for other reasons. The guidance clarifies that to the extent applicable, issuers should first reference other GAAP to account for the effect of a modification. If other GAAP is not applicable, the guidance clarifies whether to account for the modification or exchange as either (i) an adjustment to equity, or (ii) an expense. The ASU is to be applied prospectively and is effective for all entities for annual periods beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted, but entities need to apply the guidance as of the beginning of the fiscal year in which they early adopt it. |
Significant New Business (Table
Significant New Business (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Significant New Business | The table below sets forth a summary of significant new business that we have completed between January 1, 2020 and June 30, 2021: Transaction Date Completed Total Assets Assumed Deferred Charge Asset (1) Total Assets from Transactions Total Liabilities Assumed Net Fair Value Adjustment (2) Total Liabilities from Transactions Type of Transaction and Primary Nature of Business Hiscox June 3, 2021 $ 532,394 N/A $ 532,394 $ 532,394 N/A $ 532,394 LPT of diversified legacy insurance business, including surplus lines broker business Coca-Cola May 24, 2021 41,928 6,143 48,071 48,071 N/A 48,071 LPT of U.S. workers' compensation liability AXA Group May 3, 2021 1,395,000 91,988 1,486,988 1,486,988 N/A 1,486,988 ADC of a diversified mix of global casualty and professional lines CNA February 5, 2021 651,736 105,479 757,215 757,215 N/A 757,215 LPT of U.S. excess workers' compensation liabilities Liberty Mutual (3) January 8, 2021 363,159 25,402 388,561 388,561 N/A 388,561 LPT of U.S. energy liability, construction liability and homebuilders liability Total 2021 $ 2,984,217 $ 229,012 $ 3,213,229 $ 3,213,229 $ — $ 3,213,229 Hannover Re August 6, 2020 $ 182,498 N/A $ 182,498 $ 209,713 $ (27,215) $ 182,498 Novation of U.S. asbestos, environmental and workers' compensation liabilities Munich Re July 1, 2020 100,956 N/A 100,956 100,956 N/A 100,956 Business Transfer of Australian public liability, professional liability and builders' warranty liabilities AXA Group (3) June 1, 2020 179,681 N/A 179,681 179,681 N/A 179,681 LPT of U.S. construction general liability Aspen June 1, 2020 770,000 11,746 781,746 781,746 N/A 781,746 ADC on a diversified mix of property, liability and specialty lines of business across the U.S., U.K. and Europe Lyft March 31, 2020 465,000 N/A 465,000 465,000 N/A 465,000 LPT of U.S. motor liabilities Total 2020 $ 1,698,135 $ 11,746 $ 1,709,881 $ 1,737,096 $ (27,215) $ 1,709,881 Total $ 4,682,352 $ 240,758 $ 4,923,110 $ 4,950,325 $ (27,215) $ 4,923,110 (1) Where the estimated ultimate losses payable exceed the premium consideration received at the inception of the agreement, a deferred charge asset is recorded. (2) When the fair value option is elected for any retroactive reinsurance agreement, an initial net fair value adjustment is recorded at the inception of the agreement. (3) We have ceded 10% of these transactions to Enhanzed Reinsurance Ltd. ("Enhanzed Re"), in which we have an investment, on the same terms and conditions as those received by us. Refer to Note 20 - "Related Party Transactions" for further details. The table below sets forth a summary of significant new business that was announced or completed subsequent to June 30, 2021: Transaction Date Transaction Announced or Completed Initial Estimate of Liabilities Assumed Type of Transaction and Primary Nature of Business ProSight Completed on August 4, 2021 $ 500,000 LPT of U.S. discontinued workers' compensation and excess workers' compensation lines of business and ADC on a diversified mix of general liability classes of business RSA Announced on July 27, 2021 97,222 ADC on a diversified mix of commercial and personal insurance lines across the U.K. and Ireland Total $ 597,222 |
Divestitures, Held-For-Sale B_2
Divestitures, Held-For-Sale Businesses and Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Financial Information of Held-For-Sale Business | The following table summarizes the components of Northshore's assets and liabilities held-for-sale on our condensed consolidated balance sheet: December 31, 2020 ASSETS Short-term investments, AFS, at fair value $ 1,720 Fixed maturities, trading, at fair value 154,026 Fixed maturities, AFS, at fair value 7,483 Other investments, at fair value 9,897 Total investments 173,126 Cash and cash equivalents 71,156 Restricted cash and cash equivalents 152,044 Premiums receivable 62,392 Reinsurance balances recoverable on paid and unpaid losses 37,341 Funds held by reinsured companies 32,226 Other assets 182,993 TOTAL ASSETS HELD-FOR-SALE $ 711,278 LIABILITIES Losses and loss adjustment expenses $ 254,149 Insurance and reinsurance balances payable 12,393 Debt obligations 39,850 Other liabilities 177,265 TOTAL LIABILITIES HELD-FOR-SALE $ 483,657 NET ASSETS HELD-FOR-SALE $ 227,621 Three Months Ended June 30, Six Months Ended June 30, 2020 2020 INCOME Net premiums earned $ 65,403 $ 165,949 Net investment income 3,699 7,414 Net realized and unrealized gains 6,262 847 Other income 24 25 75,388 174,235 EXPENSES Net incurred losses and loss adjustment expenses 48,115 112,709 Acquisition costs 12,251 32,794 General and administrative expenses 15,645 30,729 Interest expense 591 1,180 Net foreign exchange gains (11) (2) 76,591 177,410 LOSS BEFORE INCOME TAXES (1,203) (3,175) Income tax benefit (expense) 51 (46) NET LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES (1,152) (3,221) Net loss from discontinued operations attributable to noncontrolling interest 473 1,321 NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS $ (679) $ (1,900) The table below presents a summary of the total income and expenses which have been recognized within our continuing operations relating to transactions, primarily reinsurances, between StarStone U.S. and our subsidiaries: Three Months Ended June 30, Six Months Ended June 30, 2021 2021 2020 2021 2020 Total income (1) $ (1,959) $ 3,650 $ (387) $ 7,363 Total expenses (income) (1) 3,468 (7,239) 1,068 (14,899) Net earnings (loss) $ (5,427) $ 10,889 $ (1,455) $ 22,262 (1) For the three and six months ended June 30, 2021 and 2020, negative total income was driven by a premium adjustment and negative total expenses were driven by favorable loss development on the losses and LAE reserves ceded by StarStone U.S. to our subsidiaries. The following table provides a summary of the net gain on sales of subsidiaries included in the condensed consolidated statement of earnings: Six Months Ended June 30, 2021 Atrium (7,844) SUL 23,067 Arena (329) Net gain on sales of subsidiaries 14,894 |
Summary of Distribution of Syndicate Results | December 31, 2020 Distribution of SGL No.1 share of Syndicate 609 results $ 19,115 Due to Arden under reinsurance agreement (7,965) Due to Atrium 5 Limited under Capacity Lease Agreement (11,150) Net balances with Northshore Group — December 31, 2020 Distributions of SGL No.1 Share of Syndicate 609 results 19,115 Due to Arden under reinsurance agreement (7,965) Due to Atrium 5 limited under capacity lease agreement (11,150) Net balances with Northshore Group — |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | The fair values of the underlying asset categories comprising our short-term and fixed maturity investments classified as trading and AFS and the fixed maturity investments included within our funds held - directly managed balance were as follows: June 30, 2021 Short-term investments, trading Short-term investments, AFS Fixed maturities, trading Fixed maturities, AFS Fixed maturities, funds held - directly managed Total U.S. government and agency $ 15,683 $ 88,177 $ 109,398 $ 450,424 $ 125,757 $ 789,439 U.K. government — — 30,110 11,586 — 41,696 Other government 4,105 — 334,134 125,647 16,393 480,279 Corporate — 22,296 2,884,794 3,225,992 519,916 6,652,998 Municipal — — 86,860 105,550 52,049 244,459 Residential mortgage-backed — — 130,711 397,707 43,821 572,239 Commercial mortgage-backed — — 296,776 483,990 206,488 987,254 Asset-backed — — 215,619 665,142 54,832 935,593 Total fixed maturity and short-term investments $ 19,788 $ 110,473 $ 4,088,402 $ 5,466,038 $ 1,019,256 $ 10,703,957 December 31, 2020 Short-term investments, trading Short-term investments, AFS Fixed maturities, trading Fixed maturities, AFS Fixed maturities, funds held - directly managed Total U.S. government and agency $ — $ 243,556 $ 123,874 $ 474,442 $ 109,176 $ 951,048 U.K. government — — 37,508 13,574 — 51,082 Other government 3,424 3,213 327,437 146,914 21,165 502,153 Corporate 1,705 17,026 3,227,726 1,920,323 519,952 5,686,732 Municipal — — 79,959 30,032 52,678 162,669 Residential mortgage-backed — — 154,471 328,871 70,603 553,945 Commercial mortgage-backed — — 347,225 276,488 230,377 854,090 Asset-backed — — 296,692 204,456 56,312 557,460 Total fixed maturity and short-term investments $ 5,129 $ 263,795 $ 4,594,892 $ 3,395,100 $ 1,060,263 $ 9,319,179 |
Summary of Amortized Cost and Estimated Fair Value of Fixed Maturities by Contractual Maturity | The contractual maturities of our short-term and fixed maturity investments, classified as trading and AFS and the fixed maturity investments included within our funds held - directly managed balance are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. As of June 30, 2021 Amortized Fair Value % of Total Fair Value One year or less $ 527,076 $ 532,927 5.0 % More than one year through two years 936,548 953,402 8.9 % More than two years through five years 2,405,532 2,479,482 23.3 % More than five years through ten years 2,355,524 2,455,554 22.9 % More than ten years 1,664,804 1,787,506 16.7 % Residential mortgage-backed 569,169 572,239 5.3 % Commercial mortgage-backed 966,496 987,254 9.2 % Asset-backed 939,474 935,593 8.7 % $ 10,364,623 $ 10,703,957 100.0 % |
Credit Ratings Company's Fixed Maturity and Short-Term Investments Available-for-Sale | The following table sets forth the credit ratings of our short-term and fixed maturity investments classified as trading and AFS and the fixed maturity investments included within our funds held - directly managed balance as of June 30, 2021: Amortized Fair Value % of Total AAA AA Rated A Rated BBB Non- Not Rated U.S. government and agency $ 784,054 $ 789,439 7.4 % $ 788,822 $ 381 $ — $ 236 $ — $ — U.K. government 40,011 41,696 0.4 % — 34,379 7,317 — — — Other government 460,069 480,279 4.5 % 213,984 168,864 46,640 45,889 4,902 — Corporate 6,378,115 6,652,998 62.2 % 166,647 663,162 2,964,842 2,550,601 291,394 16,352 Municipal 227,235 244,459 2.3 % 11,820 129,533 82,076 20,937 — 93 Residential mortgage-backed 569,169 572,239 5.3 % 557,182 2,423 2,201 8,920 1,413 100 Commercial mortgage-backed 966,496 987,254 9.2 % 705,402 116,062 85,728 71,649 3,831 4,582 Asset-backed 939,474 935,593 8.7 % 348,411 279,778 199,722 82,737 21,781 3,164 Total $ 10,364,623 $ 10,703,957 100.0 % $ 2,792,268 $ 1,394,582 $ 3,388,526 $ 2,780,969 $ 323,321 $ 24,291 % of total fair value 26.1 % 13.0 % 31.7 % 26.0 % 3.0 % 0.2 % |
Amortized Cost and Estimated Fair Values of Company's Fixed Maturity and Short-Term Investments Classified as Available-for-Sale | The amortized cost, unrealized gains and losses, allowance for credit losses and fair values of our short-term and fixed maturity investments classified as AFS were as follows: Gross Unrealized Losses As of June 30, 2021 Amortized Cost Gross Unrealized Gains Non-Credit Related Losses Allowance for Credit Losses Fair Value U.S. government and agency $ 539,883 $ 1,754 $ (3,036) $ — $ 538,601 U.K. government 11,357 289 (60) — 11,586 Other government 122,336 3,882 (530) (41) 125,647 Corporate 3,231,801 39,415 (15,757) (7,171) 3,248,288 Municipal 103,993 1,823 (266) — 105,550 Residential mortgage-backed 398,564 1,666 (2,506) (17) 397,707 Commercial mortgage-backed 481,909 5,277 (3,039) (157) 483,990 Asset-backed 664,262 1,230 (350) — 665,142 $ 5,554,105 $ 55,336 $ (25,544) $ (7,386) $ 5,576,511 Gross Unrealized Losses As of December 31, 2020 Amortized Cost Gross Unrealized Gains Non-Credit Related Losses Allowance for Credit Losses Fair Value U.S. government and agency $ 715,527 $ 3,305 $ (834) $ — $ 717,998 U.K. government 12,494 1,080 — — 13,574 Other government 142,459 7,721 (53) — 150,127 Corporate 1,873,184 65,913 (1,567) (181) 1,937,349 Municipal 28,881 1,155 (4) — 30,032 Residential mortgage-backed 326,268 3,292 (689) — 328,871 Commercial mortgage-backed 273,516 5,202 (2,097) (133) 276,488 Asset-backed 204,312 846 (694) (8) 204,456 $ 3,576,641 $ 88,514 $ (5,938) $ (322) $ 3,658,895 |
Summary of Investments Classified as Available-for-Sale in Unrealized Loss Position as Well as Aggregate Fair Value and Gross Unrealized Loss by Length of Time | The following tables summarizes our short-term and fixed maturity investments classified as AFS that were in a gross unrealized loss position, for which an allowance for credit losses has not been recorded: 12 Months or Greater Less Than 12 Months Total As of June 30, 2021 Fair Gross Unrealized Fair Gross Unrealized Fair Gross Unrealized U.S. government and agency $ — $ — $ 413,863 $ (3,036) $ 413,863 $ (3,036) U.K. government — — 4,175 (60) 4,175 (60) Other government — — 26,701 (257) 26,701 (257) Corporate 2,016 (49) 1,174,039 (6,928) 1,176,055 (6,977) Municipal — — 26,310 (266) 26,310 (266) Residential mortgage-backed 2,372 (2) 256,022 (2,340) 258,394 (2,342) Commercial mortgage-backed 2,885 (65) 265,257 (2,843) 268,142 (2,908) Asset-backed — — 433,875 (350) 433,875 (350) Total short-term and fixed maturity investments $ 7,273 $ (116) $ 2,600,242 $ (16,080) $ 2,607,515 $ (16,196) 12 Months or Greater Less Than 12 Months Total As of December 31, 2020 Fair Gross Unrealized Fair Gross Unrealized Fair Gross Unrealized U.S. government and agency $ — $ — $ 55,839 $ (834) $ 55,839 $ (834) Other government — — 7,971 (53) 7,971 (53) Corporate — — 199,048 (1,224) 199,048 (1,224) Municipal — — 1,690 (4) 1,690 (4) Residential mortgage-backed 4,626 (125) 79,149 (564) 83,775 (689) Commercial mortgage-backed 38 (38) 67,094 (1,562) 67,132 (1,600) Asset-backed — — 116,827 (564) 116,827 (564) Total short-term and fixed maturity investments $ 4,664 $ (163) $ 527,618 $ (4,805) $ 532,282 $ (4,968) |
Summary of Allowance for Credit Losses | The following tables provide a reconciliation of the beginning and ending allowance for credit losses on our AFS debt securities: Three Months Ended June 30, 2021 Other Corporate Residential mortgage-backed Commercial Asset-backed Total Allowance for credit losses, beginning of period $ (68) $ (12,206) $ — $ (264) $ — $ (12,538) Allowances for credit losses on securities for which credit losses were not previously recorded — (455) (17) (5) (39) (516) Reductions for securities sold during the period 1 61 — — — 62 Decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period 26 5,429 — 112 39 5,606 Allowance for credit losses, end of period $ (41) $ (7,171) $ (17) $ (157) $ — $ (7,386) Three Months Ended June 30, 2020 Other Corporate Commercial Asset-backed Total Allowance for credit losses, beginning of period $ — $ (14,323) $ (1) $ — $ (14,324) Allowances for credit losses on securities for which credit losses were not previously recorded — (149) (493) (89) (731) Reductions for securities sold during the period — 1,388 — — 1,388 Decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period — 9,994 — — 9,994 Allowance for credit losses, end of period $ — $ (3,090) $ (494) $ (89) $ (3,673) Six Months Ended June 30, 2021 Other Corporate Residential mortgage-backed Commercial Asset-backed Total Allowance for credit losses, beginning of period $ — $ (181) $ — $ (133) $ (8) $ (322) Allowances for credit losses on securities for which credit losses were not previously recorded (68) (12,577) (17) (237) (39) (12,938) Reductions for securities sold during the period 1 72 — — — 73 Decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period 26 5,515 — 213 47 5,801 Allowance for credit losses, end of period $ (41) $ (7,171) $ (17) $ (157) $ — $ (7,386) Six Months Ended June 30, 2020 Other Corporate Commercial Asset-backed Total Allowance for credit losses, beginning of period $ — $ — $ — $ — $ — Cumulative effect of change in accounting principle (22) (2,987) (50) — (3,059) Allowances for credit losses on securities for which credit losses were not previously recorded — (1,876) (444) (89) (2,409) Reductions for securities sold during the period — 1,773 — — 1,773 Reductions in the allowance for credit losses on securities we either intend to sell or more likely than not, we will be required to sell before the recovery of their amortized cost basis 22 — — — 22 Allowance for credit losses, end of period $ — $ (3,090) $ (494) $ (89) $ (3,673) |
Schedule of Equity Securities | The following table summarizes our equity investments classified as trading: June 30, 2021 December 31, 2020 Publicly traded equity investments in common and preferred stocks $ 304,701 $ 260,767 Exchange-traded funds 504,793 311,287 Privately held equity investments in common and preferred stocks 348,725 274,741 $ 1,158,219 $ 846,795 |
Other Investments | The following table summarizes our other investments carried at fair value: June 30, 2021 December 31, 2020 Hedge funds (1) $ 73,130 $ 2,638,339 Fixed income funds 603,889 552,541 Equity funds 5,617 190,767 Private equity funds 536,368 363,103 CLO equities 145,103 128,083 CLO equity funds 190,158 166,523 Private credit funds 242,359 192,319 Others 17,969 12,359 $ 1,814,593 $ 4,244,034 (1) Effective April 1, 2021, the InRe Fund was consolidated by us. As a result, the carrying amounts of the assets and liabilities of the InRe Fund are presented separately in “variable interest entity assets of the InRe Fund” and “variable interest entity liabilities of the InRe Fund” within the condensed consolidated balance sheet as of June 30, 2021. Refer to Note 11 - "Variable Interest Entities" for additional information. As of December 31, 2020, our investment in the InRe Fund was $2.4 billion. The table below details the estimated date by which proceeds would be received if we had provided notice of our intent to redeem or initiated a sales process as of June 30, 2021: Less than 1 Year 1-2 years 2-3 years More than 3 years Not Eligible/ Restricted Total Redemption Frequency Hedge funds $ 73,130 $ — $ — $ — $ — $ 73,130 Monthly to Bi-annually Fixed income funds 568,474 — — — 35,415 603,889 Daily to Quarterly Equity funds 5,617 — — — — 5,617 Daily Private equity funds — 50,950 — — 485,418 536,368 Quarterly CLO equities 145,103 — — — — 145,103 Daily to Quarterly CLO equity funds 172,776 11,260 5,757 — 365 190,158 Quarterly to Bi-annually Private credit funds — — — — 242,359 242,359 N/A Other — — — — 17,969 17,969 N/A $ 965,100 $ 62,210 $ 5,757 $ — $ 781,526 $ 1,814,593 |
Equity Method Investments | The table below shows our equity method investments: June 30, 2021 December 31, 2020 Ownership % Carrying Value Ownership % Carrying Value Enhanzed Re 47.4 % $ 433,993 47.4 % $ 330,289 Citco (1) 31.9 % 54,069 31.9 % 53,022 Monument Re (2) 20.0 % 204,322 20.0 % 193,716 Core Specialty 24.7 % 224,270 25.2 % 235,000 Other ~27% 19,776 ~27% 20,268 $ 936,430 $ 832,295 (1) We own 31.9% of the common shares in HH CTCO Holdings Limited, which owns 15.4% of the convertible preferred shares of Citco III Limited ("Citco"), amounting to a 6.2% interest in the total equity of Citco. (2) We own 20.0% of the common shares in Monument Re as well as different classes of preferred shares which have fixed dividend yields and whose balances are included in the Investment amount. |
Funds Held, Directly Managed, Carrying Values of Assets | The following table summarizes the components of the funds held - directly managed: June 30, 2021 December 31, 2020 Short-term and fixed maturity investments, trading $ 1,019,256 $ 1,060,263 Cash and cash equivalents 3,895 9,067 Other assets 5,352 5,560 $ 1,028,503 $ 1,074,890 |
Funds Held, Directly Managed, Fair Value to Amortized Cost | The following table summarizes the fixed maturity investment components of funds held - directly managed: June 30, 2021 December 31, 2020 Funds held - Directly Managed - Fair Value Option Funds held - Directly Managed - Variable Return Total Funds held - Directly Managed - Fair Value Option Funds held - Directly Managed - Variable Return Total Short-term and fixed maturity investments, at amortized cost $ 108,654 $ 843,482 $ 952,136 $ 106,938 $ 859,403 $ 966,341 Net unrealized gains: Change in fair value - fair value option accounting 7,212 — 7,212 9,693 — 9,693 Change in fair value - embedded derivative accounting — 59,908 59,908 — 84,229 84,229 Short-term fixed maturity investments within funds held - directly managed, at fair value $ 115,866 $ 903,390 $ 1,019,256 $ 116,631 $ 943,632 $ 1,060,263 |
Major Categories of Net Investment Income | Major categories of net investment income are summarized as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Fixed maturity investments $ 46,996 $ 52,837 $ 92,477 $ 106,279 Short-term investments and cash and cash equivalents (188) 752 (182) 3,377 Funds held by reinsured companies 32,420 24,099 32,008 24,369 Funds held - directly managed 6,894 10,685 13,931 19,501 Investment income from fixed maturities and cash and cash equivalents 86,122 88,373 138,234 153,526 Equity investments 4,632 3,762 8,930 9,725 Other investments 8,831 5,291 18,125 13,384 Investment income from equities and other investments 13,463 9,053 27,055 23,109 Gross investment income 99,585 97,426 165,289 176,635 Investment expenses (3,267) (2,983) (6,882) (7,478) Net investment expenses of the InRe Fund (1) (20,171) — (20,171) — Net investment income $ 76,147 $ 94,443 $ 138,236 $ 169,157 (1) Effective April 1, 2021, the InRe Fund was consolidated by us. Refer to Note 11 - "Variable Interest Entities" for additional information. Prior to this, all income or loss from the InRe Fund was determined by the change in net asset value (NAV) of our holdings in the fund, which was included within net realized and unrealized gains (losses) from other investments. |
Realized Gain (Loss) on Investments | Components of net realized and unrealized gains (losses) were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net realized gains (losses) on sales: Gross realized gains on fixed maturity securities, AFS $ 3,494 $ 8,577 $ 8,265 $ 10,124 Gross realized losses on fixed maturity securities, AFS (2,864) (4,567) (6,766) (6,593) Decrease (increase) in allowance for expected credit losses on fixed maturity securities, AFS 5,090 9,002 (7,137) (2,637) Net realized gains on fixed maturity securities, trading 11,275 41,556 29,039 57,380 Net realized gains on funds held - directly managed 728 1,741 1,252 2,253 Net realized gains on equity investments 1,033 1,886 63 879 Net realized investment losses on investment derivatives (259) — (80) — Net realized gains of the InRe Fund (1) 321,705 — 321,705 — Total net realized gains on sales $ 340,202 $ 58,195 $ 346,341 $ 61,406 Net unrealized gains (losses): Fixed maturity securities, trading $ 40,011 $ 300,948 $ (128,912) $ 44,471 Fixed maturity securities in funds held - directly managed 17,530 60,107 (26,660) 34,805 Equity investments 52,003 39,333 81,964 (52,619) Other Investments (1) 60,500 143,971 139,983 (69,712) Investment derivatives (51) — 84 — Net unrealized gains (losses) of the InRe Fund (1) (104,975) 365,054 (28,368) 320,196 Total net unrealized gains $ 65,018 $ 909,413 $ 38,091 $ 277,141 Net realized and unrealized gains $ 405,220 $ 967,608 $ 384,432 $ 338,547 |
Unrealized Gain (Loss) on Investments | Components of net realized and unrealized gains (losses) were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net realized gains (losses) on sales: Gross realized gains on fixed maturity securities, AFS $ 3,494 $ 8,577 $ 8,265 $ 10,124 Gross realized losses on fixed maturity securities, AFS (2,864) (4,567) (6,766) (6,593) Decrease (increase) in allowance for expected credit losses on fixed maturity securities, AFS 5,090 9,002 (7,137) (2,637) Net realized gains on fixed maturity securities, trading 11,275 41,556 29,039 57,380 Net realized gains on funds held - directly managed 728 1,741 1,252 2,253 Net realized gains on equity investments 1,033 1,886 63 879 Net realized investment losses on investment derivatives (259) — (80) — Net realized gains of the InRe Fund (1) 321,705 — 321,705 — Total net realized gains on sales $ 340,202 $ 58,195 $ 346,341 $ 61,406 Net unrealized gains (losses): Fixed maturity securities, trading $ 40,011 $ 300,948 $ (128,912) $ 44,471 Fixed maturity securities in funds held - directly managed 17,530 60,107 (26,660) 34,805 Equity investments 52,003 39,333 81,964 (52,619) Other Investments (1) 60,500 143,971 139,983 (69,712) Investment derivatives (51) — 84 — Net unrealized gains (losses) of the InRe Fund (1) (104,975) 365,054 (28,368) 320,196 Total net unrealized gains $ 65,018 $ 909,413 $ 38,091 $ 277,141 Net realized and unrealized gains $ 405,220 $ 967,608 $ 384,432 $ 338,547 |
Reconciliation to Comprehensive Income | The following table provides a reconciliation of the gross realized gains and losses and credit recoveries (losses) on our AFS fixed maturity debt securities that arose during the three and six months ended June 30, 2021 within our continuing and discontinued operations and the offsetting reclassification adjustments included within our consolidated statements of comprehensive income: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Included within continuing operations: Gross realized gains on fixed maturity securities, AFS $ 3,494 $ 8,577 $ 8,265 $ 10,124 Gross realized losses on fixed maturity securities, AFS (2,864) (4,567) (6,766) (6,593) Tax effect (101) — (376) — Included within discontinued operations: Gross realized gains on fixed maturity securities, AFS — 269 — 536 Gross realized losses on fixed maturity securities, AFS — (57) — (57) Total reclassification adjustment $ 529 $ 4,222 $ 1,123 $ 4,010 Included within continuing operations: Credit losses on fixed maturity securities, AFS $ 5,090 $ 9,002 $ (7,137) $ (2,637) Tax effect 4 — 206 — Included within discontinued operations: Credit losses on fixed maturity securities, AFS — 1,760 — 187 Total reclassification adjustment $ 5,094 $ 10,762 $ (6,931) $ (2,450) |
Schedule of Restricted Assets | The carrying value of our restricted assets, including restricted cash of $356.9 million and $472.0 million, as of June 30, 2021 and December 31, 2020, respectively, was as follows: June 30, 2021 December 31, 2020 Collateral in trust for third party agreements $ 5,529,480 $ 4,924,866 Assets on deposit with regulatory authorities 230,361 131,283 Collateral for secured letter of credit facilities 98,561 104,627 Funds at Lloyd's (1) 491,171 260,914 $ 6,349,573 $ 5,421,690 |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Estimated Fair Value and Unrealized Gains (Losses) on Derivative Instruments | The following table presents the gross notional amounts and estimated fair values recorded within other assets and liabilities related to our qualifying foreign currency forward exchange rate contracts: June 30, 2021 December 31, 2020 Gross Notional Amount Fair Value Gross Notional Amount Fair Value Assets Liabilities Assets Liabilities Foreign currency forward - AUD $ 64,543 $ 2,165 $ — $ 73,852 $ 13 $ 5,060 Foreign currency forward - EUR 250,592 7,626 — 217,168 205 8,889 Foreign currency forward - GBP 306,376 7,792 2 312,671 951 14,998 Total qualifying hedges $ 621,511 $ 17,583 $ 2 $ 603,691 $ 1,169 $ 28,947 The following table presents the net gains and losses deferred in the cumulative translation adjustment ("CTA") account, which is a component of AOCI, in shareholders' equity, relating to our foreign currency forward exchange rate contracts: Amount of Gains (Losses) Deferred in AOCI Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Foreign currency forward - AUD $ 999 $ (7,435) $ 1,535 $ 1,036 Foreign currency forward - EUR (1,552) (3,111) 7,782 (476) Foreign currency forward - GBP (502) 505 (3,690) 21,317 Net gains (losses) on qualifying derivative hedges $ (1,055) $ (10,041) $ 5,627 $ 21,877 The following table presents the gross notional amounts and estimated fair values recorded within other assets and other liabilities related to our non-qualifying foreign currency forward exchange rate hedging relationships: June 30, 2021 December 31, 2020 Gross Notional Amount Fair Value Gross Notional Amount Fair Value Assets Liabilities Assets Liabilities Foreign currency forward - AUD $ 27,436 $ 2,092 $ 831 $ 28,848 $ 882 $ 2,847 Foreign currency forward - CAD 47,228 1,467 48 64,224 10 1,764 Foreign currency forward - EUR 80,569 — 2,064 43,531 1,782 41 Foreign currency forward - GBP 62,103 938 59 2,731 161 404 Total non-qualifying hedges $ 217,336 $ 4,497 $ 3,002 $ 139,334 $ 2,835 $ 5,056 The following table presents the amounts of the net gains and losses included in earnings related to our non-qualifying foreign currency forward exchange rate contracts: Gains (losses) on non-qualifying-hedges charged to net earnings Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Foreign currency forward - AUD $ 494 $ (2,978) $ 1,333 $ (445) Foreign currency forward - CAD (480) (2,225) (1,289) 2,771 Foreign currency forward - EUR 274 (224) (2,051) 952 Foreign currency forward - GBP 338 924 718 $ 1,500 Net gains (losses) on non-qualifying hedges $ 626 $ (4,503) $ (1,289) $ 4,778 The following tables present the gross notional amounts and estimated fair values recorded within other assets and other liabilities related to our credit default swaps, government bond futures contracts and currency forward contracts: June 30, 2021 December 31, 2020 Gross Notional Amount Fair Value Gross Notional Amount Fair Value Assets Liabilities Assets Liabilities Futures contracts - long positions $ 14,699 $ 56 $ 7 $ 34,502 $ 32 $ 5 Futures contracts - short positions (14,225) 1 54 (32,316) 6 121 Currency forward contracts - long positions - USD 394 10 — 1,428 — 13 Currency forward contracts - short positions - USD (432) — 12 (3,233) 60 — Currency forward contracts - long positions - GBP 7,432 7 — 1,278 19 — Currency forward contracts - short positions - GBP (13,811) — 54 (4,418) 12 — Total $ (5,943) $ 74 $ 127 $ (2,759) $ 129 $ 139 |
Derivative Instruments, Gain (Loss) | The following table presents the amounts of the net gains (losses) included in earnings related to our credit default swaps, government bond futures contracts and currency forward contracts: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Credit default swaps $ (77) — $ (77) — Futures contracts (230) (37) 83 (37) Currency forward contracts (631) 166 (1,351) 166 Total net losses $ (938) 129 $ (1,345) 129 |
Reinsurance Balances Recovera_2
Reinsurance Balances Recoverable on Paid and Unpaid Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Insurance [Abstract] | |
Summary of Reinsurance Reserves Recoverable and Uncollectible Reinsurance Balances Recoverable | The following tables provide the total reinsurance balances recoverable on paid and unpaid losses: June 30, 2021 Run-off (1) Legacy Underwriting (1) Corporate & Other Total Recoverable from reinsurers on unpaid: Outstanding losses $ 1,179,211 $ 25,872 $ — $ 1,205,083 IBNR 563,115 49,444 — 612,559 ULAE 16,901 954 — 17,855 Fair value adjustments - acquired companies — — (14,165) (14,165) Fair value adjustments - fair value option — — (33,607) (33,607) Total reinsurance reserves recoverable 1,759,227 76,270 (47,772) 1,787,725 Paid losses recoverable 188,602 400 — 189,002 Total $ 1,947,829 $ 76,670 $ (47,772) $ 1,976,727 Reconciliation to Condensed Consolidated Balance Sheet: Reinsurance balances recoverable on paid and unpaid losses $ 1,421,879 $ 76,670 $ (14,165) $ 1,484,384 Reinsurance balances recoverable on paid and unpaid losses - fair value option 525,950 — (33,607) 492,343 Total $ 1,947,829 $ 76,670 $ (47,772) $ 1,976,727 (1) Effective January 1, 2021, the net loss reserves of StarStone International were transferred from the Legacy Underwriting segment to the Run-off segment. Refer to Note 22 - "Segment Information" for further details. December 31, 2020 Run-off Legacy Underwriting Corporate & Other Total Recoverable from reinsurers on unpaid: Outstanding losses $ 938,231 $ 263,638 $ — $ 1,201,869 IBNR 508,082 139,761 — 647,843 ULAE 16,688 — — 16,688 Fair value adjustments - acquired companies — — (15,353) (15,353) Fair value adjustments - fair value option — — (21,427) (21,427) Total reinsurance reserves recoverable 1,463,001 403,399 (36,780) 1,829,620 Paid losses recoverable 172,309 87,234 — 259,543 Total $ 1,635,310 $ 490,633 $ (36,780) $ 2,089,163 Reconciliation to Condensed Consolidated Balance Sheet: Reinsurance balances recoverable on paid and unpaid losses $ 1,093,053 $ 490,633 $ (15,353) $ 1,568,333 Reinsurance balances recoverable on paid and unpaid losses - fair value option 542,257 — (21,427) 520,830 Total $ 1,635,310 $ 490,633 $ (36,780) $ 2,089,163 The following tables show our gross and net balances recoverable from our reinsurers as well as the related allowance for estimated uncollectible reinsurance broken down by the credit ratings of our reinsurers. The majority of the allowance for estimated uncollectible reinsurance relates to the Run-off segment. June 30, 2021 Gross Allowance for estimated uncollectible reinsurance Net Provisions as a Reinsurers rated A- or above $ 1,385,215 $ 61,010 $ 1,324,205 4.4 % Reinsurers rated below A-, secured 599,123 — 599,123 — % Reinsurers rated below A-, unsecured 132,877 79,478 53,399 59.8 % Total $ 2,117,215 $ 140,488 $ 1,976,727 6.6 % December 31, 2020 Gross Allowance for estimated uncollectible reinsurance Net Provisions as a Reinsurers rated A- or above $ 1,464,529 $ 60,801 $ 1,403,728 4.2 % Reinsurers rated below A-, secured 608,999 — 608,999 — % Reinsurers rated below A-, unsecured 152,757 76,321 76,436 50.0 % Total $ 2,226,285 $ 137,122 $ 2,089,163 6.2 % The following table provides a summary of premiums written and earned by segment: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Premiums Premiums Premiums Premiums Premiums Written Premiums Earned Premiums Written Premiums Earned Run-off Gross $ 8,001 $ 61,564 $ (2,155) $ 14,395 $ 30,184 $ 155,770 $ (1,828) $ 32,473 Ceded 2,160 (19,160) (1,048) (3,878) (15,525) (40,530) 801 (5,926) Net $ 10,161 $ 42,404 $ (3,203) $ 10,517 $ 14,659 $ 115,240 $ (1,027) $ 26,547 Legacy Underwriting Gross $ 13,515 $ 38,060 $ 141,547 $ 167,235 $ 41,089 $ 86,119 $ 350,981 $ 344,278 Ceded (6,501) (20,820) (17,568) (34,881) (22,608) (48,839) (74,719) (68,603) Net $ 7,014 $ 17,240 $ 123,979 $ 132,354 $ 18,481 $ 37,280 $ 276,262 $ 275,675 Total Gross $ 21,516 $ 99,624 $ 139,392 $ 181,630 $ 71,273 $ 241,889 $ 349,153 $ 376,751 Ceded (4,341) (39,980) (18,616) (38,759) (38,133) (89,369) (73,918) (74,529) Total $ 17,175 $ 59,644 $ 120,776 $ 142,871 $ 33,140 $ 152,520 $ 275,235 $ 302,222 |
Reinsurance Balances Recoverable by Reinsurer | June 30, 2021 Run-off Legacy Underwriting Corporate & Other Total % of Top 10 reinsurers $ 1,305,706 $ 20,978 $ — $ 1,326,684 67.1 % Other reinsurers > $1 million 619,145 55,083 (47,772) 626,456 31.7 % Other reinsurers < $1 million 22,978 609 — 23,587 1.2 % Total $ 1,947,829 $ 76,670 $ (47,772) $ 1,976,727 100.0 % December 31, 2020 Run-off Legacy Underwriting Corporate & Other Total % of Top 10 reinsurers $ 1,036,676 $ 327,917 $ — $ 1,364,593 65.3 % Other reinsurers > $1 million 574,869 159,513 (36,780) 697,602 33.4 % Other reinsurers < $1 million 23,765 3,203 — 26,968 1.3 % Total $ 1,635,310 $ 490,633 $ (36,780) $ 2,089,163 100.0 % June 30, 2021 December 31, 2020 Information regarding top ten reinsurers: Number of top 10 reinsurers rated A- or better 7 7 Number of top 10 non-rated reinsurers (1) 3 3 Reinsurers rated A- or better in top 10 $ 803,312 $ 863,819 Non-rated reinsurers in top 10 (1) 523,372 500,774 Total top 10 reinsurance recoverables $ 1,326,684 $ 1,364,593 Single reinsurers that represent 10% or more of total reinsurance balance recoverables as of June 30, 2021 and December 31, 2020: Lloyd's Syndicates (2) $ 327,940 $ 331,118 Michigan Catastrophic Claims Association (3) $ 227,279 $ 229,374 Enhanzed Re (4) $ 226,003 $ — (1) The reinsurance balances recoverable from the three non-rated top 10 reinsurers was comprised of: • $227.3 million and $229.4 million as of June 30, 2021 and December 31, 2020 respectively, due from Michigan Catastrophic Claims Association; • $70.1 million and $73.8 million as of June 30, 2021 and December 31, 2020 respectively, due from a reinsurer who has provided us with security in the form of pledged assets i n trust for the full amount of the recoverable balance; and • $226.0 million and $208.4 million as of June 30, 2021 and December 31, 2020 respectively, due from Enhanzed Re, an equity method investee to whom some of our subsidiaries have retroceded their exposures through quota share reinsurance agreements as discussed in Note 20 - "Related Party Transactions." These quota share reinsurance agreements are written on a funds withheld basis. (2) Lloyd's Syndicates are rated A+ by Standard & Poor's and A by A.M. Best. (3) U.S. state backed reinsurer that is supported by assessments on active auto writers operating within the state. |
Reconciliation for Reinsurance Recoverable, Allowance for Credit Loss | The table below provides a reconciliation of the beginning and ending allowance for estimated uncollectible reinsurance balances for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Allowance for estimated uncollectible reinsurance, beginning of period $ 138,765 $ 143,327 $ 137,122 $ 147,639 Cumulative effect of change in accounting principle on allowance for estimated uncollectible reinsurance (1) — — — (195) Effect of exchange rate movement 2 (1,446) 160 (1,446) Current period change in the allowance 1,721 2,584 3,738 (1,533) Write-offs charged against the allowance — (600) — (600) Recoveries collected — (212) (532) (212) Allowance for estimated uncollectible reinsurance, end of period $ 140,488 $ 143,653 $ 140,488 $ 143,653 (1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. |
Deferred Charge Assets and De_2
Deferred Charge Assets and Deferred Gain Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | The following table presents a reconciliation of the deferred charge assets: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Beginning carrying value $ 360,785 $ 257,832 $ 238,602 $ 272,462 Recorded during the period 98,131 11,746 229,012 11,746 Amortization (23,765) (11,062) (32,463) (25,692) Ending carrying value $ 435,151 $ 258,516 $ 435,151 $ 258,516 |
Schedule Of Deferred Gain Liabilities | The following table presents a reconciliation of the deferred gain liabilities: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Beginning carrying value $ 19,251 $ 12,578 $ 19,880 $ 12,875 Recorded during the period 1,562 — 1,562 — Amortization (754) (662) (1,383) (959) Ending carrying value $ 20,059 $ 11,916 $ 20,059 $ 11,916 |
Losses and Loss Adjustment Ex_2
Losses and Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Insurance [Abstract] | |
Total Losses and Loss Adjustment Expense Liabilities, and Reconciliation of Beginning and Ending Balances | The following tables summarize the liability for losses and LAE by segment and for our corporate and other activities: June 30, 2021 Run-off Legacy Underwriting Corporate & Other Total Outstanding losses $ 5,604,831 $ 94,652 $ — $ 5,699,483 IBNR 7,022,204 143,890 — 7,166,094 ULAE 428,626 2,369 — 430,995 Fair value adjustments - acquired companies — — (133,853) (133,853) Fair value adjustments - fair value option — — (124,861) (124,861) Total $ 13,055,661 $ 240,911 $ (258,714) $ 13,037,858 Reconciliation to Condensed Consolidated Balance Sheet: Loss and loss adjustment expenses $ 10,696,695 $ 240,911 $ (133,853) $ 10,803,753 Loss and loss adjustment expenses, at fair value 2,358,966 — (124,861) 2,234,105 Total $ 13,055,661 $ 240,911 $ (258,714) $ 13,037,858 December 31, 2020 Run-off Legacy Underwriting Corporate & Other Total Outstanding losses $ 4,440,425 $ 687,424 $ — $ 5,127,849 IBNR 4,641,500 636,003 — 5,277,503 ULAE 350,600 35,102 — 385,702 Fair value adjustments - acquired companies — — (143,183) (143,183) Fair value adjustments - fair value option — — (54,589) (54,589) Total $ 9,432,525 $ 1,358,529 $ (197,772) $ 10,593,282 Reconciliation to Condensed Consolidated Balance Sheet: Loss and loss adjustment expenses $ 6,925,016 $ 1,358,529 $ (143,183) $ 8,140,362 Loss and loss adjustment expenses, at fair value 2,507,509 — (54,589) 2,452,920 Total $ 9,432,525 $ 1,358,529 $ (197,772) $ 10,593,282 The table below provides a consolidated reconciliation of the beginning and ending liability for losses and LAE: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Balance as of beginning of period $ 11,427,420 $ 9,836,797 $ 10,593,282 $ 9,868,404 Add: losses and LAE relating to SGL No.1 (1) — — 254,561 — 11,427,420 9,836,797 10,847,843 9,868,404 Less: Reinsurance reserves recoverable (2) 1,869,535 1,902,749 1,829,620 1,927,624 Reinsurance reserves recoverable relating to SGL No1 (1) — — 90,792 — 1,869,535 1,902,749 1,920,412 1,927,624 Less: net deferred charge assets and deferred gain liabilities on retroactive reinsurance 341,534 245,254 218,722 259,587 Less: cumulative effect of change in accounting principle on the determination of the allowance for estimated uncollectible reinsurance balances (3) — — — 643 Net balance as of beginning of period 9,216,351 7,688,794 8,708,709 7,680,550 Net incurred losses and LAE: Current period 49,165 119,613 103,225 235,118 Prior periods (9,861) 67,079 (119,428) (5,126) Total net incurred losses and LAE 39,304 186,692 (16,203) 229,992 Net paid losses: Current period (5,892) (11,303) (12,394) (15,110) Prior periods (354,667) (369,984) (690,697) (726,003) Total net paid losses (360,559) (381,287) (703,091) (741,113) Effect of exchange rate movement 2,510 40,153 (6,261) (106,227) Assumed business (4) 1,965,559 954,323 2,880,011 1,425,473 Ceded business (28,124) — (28,124) — Net balance as of June 30 10,835,041 8,488,675 10,835,041 8,488,675 Plus: reinsurance reserves recoverable (2) 1,787,725 1,858,161 1,787,725 1,858,161 Plus: net deferred charge assets and deferred gain liabilities on retroactive reinsurance (5) 415,092 246,600 415,092 246,600 Balance as of June 30 $ 13,037,858 $ 10,593,436 $ 13,037,858 $ 10,593,436 (1) This balance represents the gross up for our participation in Atrium's Syndicate 609 relating to the 2020 and prior underwriting years which is no longer eliminated on our condensed consolidated financial statements following the completion of the Exchange Transaction on January 1, 2021. Gross losses and LAE exclude $0.4 million of fair value adjustments that were a component of the losses and LAE balance included on the held-for-sale balance sheet and which were derecognized following the completion of the Exchange Transaction. Refer to Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations" for further details. (2) Net of allowance for estimated uncollectible reinsurance. (3) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. (4) Refer to Note 2 - "Significant New Business" for further information. (5) Refer to Note 7 - "Deferred Charge Assets and Deferred Gain Liabilities" for further information. The table below provides a reconciliation of the beginning and ending liability for losses and LAE for the Run-off segment: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Balance as of beginning of period $ 11,467,367 $ 8,652,532 $ 9,432,525 $ 8,683,983 Less: reinsurance reserves recoverable (1) 1,835,796 1,568,296 1,463,001 1,645,352 Plus: cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance (2) — — — 703 Net balance as of beginning of period 9,631,571 7,084,236 7,969,524 7,039,334 Net incurred losses and LAE: Current period 41,409 8,086 85,570 15,935 Prior periods (58,406) (68,335) (97,942) (103,377) Total net incurred losses and LAE (16,997) (60,249) (12,372) (87,442) Net paid losses: Current period 519 202 (2,756) (1,038) Prior periods (357,713) (283,604) (685,067) (541,330) Total net paid losses (357,194) (283,402) (687,823) (542,368) Effect of exchange rate movement 5,050 30,606 (7,362) (109,483) Assumed business (3) 2,063,690 966,069 3,109,023 1,437,219 Ceded business (29,686) — (29,686) — Transfer from the Legacy Underwriting segment (4) — — 955,130 — Net balance as of June 30 11,296,434 7,737,260 11,296,434 7,737,260 Plus: reinsurance reserves recoverable (1) 1,759,227 1,494,652 1,759,227 1,494,652 Balance as of June 30 $ 13,055,661 $ 9,231,912 $ 13,055,661 $ 9,231,912 (1) Net of allowance for estimated uncollectible reinsurance. (2) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. (3) Refer to Note 2 - "Significant New Business" for further information. (4) Effective January 1, 2021, the net loss reserves of StarStone International were transferred from the Legacy Underwriting segment to the Run-off segment. Refer to Note 22 - "Segment Information" for further details. The table below provides a reconciliation of the beginning and ending liability for losses and LAE for our Legacy Underwriting segment: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Balance as of beginning of period $ 249,096 $ 1,616,527 $ 1,358,529 $ 1,569,865 Add: losses and LAE relating to SGL No.1 (1) — — 254,561 — 249,096 1,616,527 1,613,090 1,569,865 Less: Reinsurance reserves recoverable (2) 88,957 442,905 403,399 385,613 Reinsurance recoverable relating to SGL No.1 (1) — — 90,792 — 88,957 442,905 494,191 385,613 Less: cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance (3) — — — 1,346 Net balance as of beginning of period 160,139 1,173,622 1,118,899 1,182,906 Net incurred losses and LAE: Current period 7,756 111,527 17,655 219,183 Prior periods 2,525 (16,145) (2,896) (18,270) Total net incurred losses and LAE 10,281 95,382 14,759 200,913 Net paid losses: Current period (6,411) (11,505) (9,638) (14,072) Prior periods 3,046 (86,380) (5,630) (184,673) Total net paid losses (3,365) (97,885) (15,268) (198,745) Effect of exchange rate movement (2,414) 9,990 1,381 (3,965) Transfer to Run-off segment (4) — — (955,130) — Net balance as of June 30 164,641 1,181,109 164,641 1,181,109 Plus: reinsurance reserves recoverable (1) 76,270 429,847 76,270 429,847 Balance as of June 30 $ 240,911 $ 1,610,956 $ 240,911 $ 1,610,956 (1) This balance represents the gross up for our participation in Atrium's Syndicate 609 relating to the 2020 and prior underwriting years which is no longer eliminated on our condensed consolidated financial statements following the completion of the Exchange Transaction on January 1, 2021. Refer to Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations" for further details. (2) Net of allowance for estimated uncollectible reinsurance. (3) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. (4) Effective January 1, 2021, the net loss reserves of StarStone International were transferred from the Legacy Underwriting segment to the Run-off segment. Refer to Note 22 - "Segment Information" for further details. |
Schedule of Incurred Losses | The tables below provide the components of net incurred losses and LAE by segment and for our corporate and other activities: Three Months Ended June 30, 2021 Run-off Legacy Underwriting Corporate & Other Total Net losses paid $ 357,194 $ 3,365 $ — $ 360,559 Net change in case and LAE reserves (1) (122,747) 5,264 — (117,483) Net change in IBNR reserves (2) (235,698) 1,899 — (233,799) Increase (reduction) in estimates of net ultimate losses (1,251) 10,528 — 9,277 Increase (reduction) in provisions for unallocated LAE (3) (15,746) (247) — (15,993) Amortization of deferred charge assets and deferred gain liabilities (4) — — 23,011 23,011 Amortization of fair value adjustments (5) — — 5,296 5,296 Changes in fair value - fair value option (6) — — 17,713 17,713 Net incurred losses and LAE $ (16,997) $ 10,281 $ 46,020 $ 39,304 Three Months Ended June 30, 2020 Run-off Legacy Underwriting Corporate & Other Total Net losses paid $ 283,402 $ 97,885 $ — $ 381,287 Net change in case and LAE reserves (1) (76,106) (29,359) — (105,465) Net change in IBNR reserves (2) (255,120) (1,029) — (256,149) Increase (reduction) in estimates of net ultimate losses (47,824) 67,497 — 19,673 Increase (reduction) in provisions for unallocated LAE (3) (12,425) 27,885 — 15,460 Amortization of deferred charge assets and deferred gain liabilities (4) — — 10,400 10,400 Amortization of fair value adjustments (5) — — 7,116 7,116 Changes in fair value - fair value option (6) — — 134,043 134,043 Net incurred losses and LAE $ (60,249) $ 95,382 $ 151,559 $ 186,692 Six Months Ended June 30, 2021 Run-off Legacy Underwriting Corporate & Other Total Net losses paid $ 687,823 $ 15,268 $ — $ 703,091 Net change in case and LAE reserves (1) (242,110) (2,507) — (244,617) Net change in IBNR reserves (2) (429,641) 2,688 — (426,953) Increase (reduction) in estimates of net ultimate losses 16,072 15,449 — 31,521 Increase (reduction) in provisions for unallocated LAE (3) (28,444) (690) — (29,134) Amortization of deferred charge assets and deferred gain liabilities (4) — — 31,080 31,080 Amortization of fair value adjustments (5) — — 8,089 8,089 Changes in fair value - fair value option (6) — — (57,759) (57,759) Net incurred losses and LAE $ (12,372) $ 14,759 $ (18,590) $ (16,203) Six Months Ended June 30, 2020 Run-off Legacy Underwriting Corporate & Other Total Net losses paid $ 542,368 $ 198,745 $ — $ 741,113 Net change in case and LAE reserves (1) (250,686) (64,547) — (315,233) Net change in IBNR reserves (2) (359,220) 38,220 — (321,000) Increase (reduction) in estimates of net ultimate losses (67,538) 172,418 — 104,880 Increase (reduction) in provisions for unallocated LAE (3) (19,904) 28,495 — 8,591 Amortization of deferred charge assets and deferred gain liabilities (4) — — 24,733 24,733 Amortization of fair value adjustments (5) — — 15,982 15,982 Changes in fair value - fair value option (6) — — 75,806 75,806 Net incurred losses and LAE $ (87,442) $ 200,913 $ 116,521 $ 229,992 (1) Comprises the movement during the year in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys, less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims. (2) Represents the gross change in our actuarial estimates of IBNR, less amounts recoverable. (3) Represents the change in the estimate of the total future costs to administer the claims. (4) Relates to the amortization of deferred charge assets and deferred gain liabilities on retroactive reinsurance contracts. (5) Relates to the amortization of fair value adjustments associated with the acquisition of companies. (6) Represents the changes in the fair value of liabilities related to our assumed retroactive reinsurance contracts for which we have elected the fair value option. Net incurred losses and LAE in the Run-off segment were as follows: Three Months Ended June 30, 2021 2020 Prior Current Total Prior Current Total Net losses paid $ 357,713 $ (519) $ 357,194 $ 283,604 $ (202) $ 283,402 Net change in case and LAE reserves (1) (129,991) 7,244 (122,747) (75,276) (830) (76,106) Net change in IBNR reserves (2) (269,418) 33,720 (235,698) (264,238) 9,118 (255,120) Increase (reduction) in estimates of net ultimate losses (41,696) 40,445 (1,251) (55,910) 8,086 (47,824) Increase (reduction) in provisions for unallocated LAE (3) (16,710) 964 (15,746) (12,425) — (12,425) Net incurred losses and LAE $ (58,406) $ 41,409 $ (16,997) $ (68,335) $ 8,086 $ (60,249) (1) Comprises the movement during the year in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys, less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims. (2) Represents the gross change in our actuarial estimates of IBNR, less amounts recoverable. (3) Represents the change in the estimate of the total future costs to administer the claims. Six Months Ended June 30, 2021 2020 Prior Current Total Prior Current Total Net losses paid $ 685,067 $ 2,756 $ 687,823 $ 541,330 $ 1,038 $ 542,368 Net change in case and LAE reserves (1) (247,147) 5,037 (242,110) (251,528) 842 (250,686) Net change in IBNR reserves (2) (504,983) 75,342 (429,641) (373,275) 14,055 (359,220) Increase (reduction) in estimates of net ultimate losses (67,063) 83,135 16,072 (83,473) 15,935 (67,538) Increase (reduction) in provisions for unallocated LAE (3) (30,879) 2,435 (28,444) (19,904) — (19,904) Net incurred losses and LAE $ (97,942) $ 85,570 $ (12,372) $ (103,377) $ 15,935 $ (87,442) (1) Comprises the movement during the year in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys, less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims. (2) Represents the gross change in our actuarial estimates of IBNR, less amounts recoverable. (3) Represents the change in the estimate of the total future costs to administer the claims. Net incurred losses and LAE in the Legacy Underwriting segment were as follows: Three Months Ended June 30, 2021 2020 Prior Period Current Period Total Prior Period Current Period Total Net losses paid $ (3,046) $ 6,411 $ 3,365 $ 86,380 $ 11,505 $ 97,885 Net change in case and LAE reserves (1) 7,838 (2,574) 5,264 (29,802) 443 (29,359) Net change in IBNR reserves (2) (1,954) 3,853 1,899 (72,997) 71,968 (1,029) Increase (reduction) in estimates of net ultimate losses 2,838 7,690 10,528 (16,419) 83,916 67,497 Increase (reduction) in provisions for unallocated LAE (3) (313) 66 (247) 274 27,611 27,885 Net incurred losses and LAE $ 2,525 $ 7,756 $ 10,281 $ (16,145) $ 111,527 $ 95,382 (1) Comprises the movement during the year in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys, less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims. (2) Represents the gross change in our actuarial estimates of IBNR, less amounts recoverable. (3) Represents the change in the estimate of the total future costs to administer the claims. Six Months Ended June 30, 2021 2020 Prior Period Current Period Total Prior Period Current Period Total Net losses paid $ 5,630 $ 9,638 $ 15,268 $ 184,673 $ 14,072 $ 198,745 Net change in case and LAE reserves (1) (4,692) 2,185 (2,507) (73,340) 8,793 (64,547) Net change in IBNR reserves (2) (3,304) 5,992 2,688 (129,786) 168,006 38,220 Increase (reduction) in estimates of net ultimate losses (2,366) 17,815 15,449 (18,453) 190,871 172,418 Increase (reduction) in provisions for unallocated LAE (3) (530) (160) (690) 183 28,312 28,495 Net incurred losses and LAE $ (2,896) $ 17,655 $ 14,759 $ (18,270) $ 219,183 $ 200,913 (1) Comprises the movement during the year in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys, less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims. (2) Represents the gross change in our actuarial estimates of IBNR, less amounts recoverable. (3) Represents the change in the estimate of the total future costs to administer the claims. |
Defendant Asbestos and Enviro_2
Defendant Asbestos and Environmental Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Liability for Asbestos and Environmental Claims [Abstract] | |
Schedule of Liability for Asbestos and Liability Claims | The carrying value of the asbestos and environmental liabilities, insurance recoveries, future estimated expenses and the fair value adjustments related to DCo and Morse TEC were as follows: June 30, 2021 December 31, 2020 Defendant asbestos and environmental liabilities: Defendant asbestos liabilities $ 877,894 $ 913,276 Defendant environmental liabilities 12,074 12,572 Estimated future expenses 39,002 42,510 Fair value adjustments (251,051) (262,029) Defendant asbestos and environmental liabilities 677,919 706,329 Insurance balances recoverable: Insurance recoveries related to defendant asbestos liabilities (net of allowance: 2021 - $5,822; 2020 - $4,824) 305,948 310,602 Fair value adjustments (59,969) (60,950) Insurance balances recoverable 245,979 249,652 Net liabilities relating to defendant asbestos and environmental exposures $ 431,940 $ 456,677 |
Reconciliation of Asbestos and Environmental Liabilities | The table below provides a consolidated reconciliation of the beginning and ending liability for defendant asbestos and environmental exposures: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Balance as of beginning of period $ 691,557 $ 822,716 $ 706,329 $ 847,685 Less: Insurance balances recoverable 248,010 435,613 249,652 448,855 Plus: Cumulative effect of change in accounting principle on the determination of the allowance for estimated uncollectible insurance balances (1) — — — 3,167 Net balance as of beginning of period 443,547 387,103 456,677 401,997 Total net paid claims (10,916) (7,495) (17,224) (914) Amounts recorded in other income: Reduction in estimates of ultimate net liabilities (4,450) (1,978) (14,002) (26,893) Reduction in estimated future expenses (745) (975) (3,508) (3,003) Amortization of fair value adjustments 4,504 3,130 9,997 8,598 Total other income (691) 177 (7,513) (21,298) Net balance as at June 30 431,940 379,785 431,940 379,785 Plus: Insurance balances recoverable (2) 245,979 428,277 245,979 428,277 Balance as at June 30 $ 677,919 $ 808,062 $ 677,919 $ 808,062 (1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. |
Reconciliation of Allowance for Estimated Uncollectible Insurance Balances | The table below provides a reconciliation of the beginning and ending allowance for estimated uncollectible insurance balances related to our defendant asbestos liabilities. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Allowance for estimated uncollectible insurance balances, beginning of period $ 5,272 $ 6,985 $ 4,824 $ 3,818 Cumulative effect of change in accounting principle — — — 3,167 Current period change in the allowance 550 1,361 998 1,361 Allowance for estimated uncollectible insurance balances, end of period $ 5,822 $ 8,346 $ 5,822 $ 8,346 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Categorized Investments Recorded at Fair Value among Levels | We have categorized our assets and liabilities that are recorded at fair value on a recurring basis among levels based on the observability of inputs, or at fair value using NAV per share (or its equivalent) as follows: June 30, 2021 Quoted Prices in Significant Significant Fair Value Based on NAV as Practical Expedient Total Fair Investments: Short-term and fixed maturity investments: U.S. government and agency $ — $ 789,439 $ — $ — $ 789,439 U.K. government — 41,696 — — 41,696 Other government — 480,279 — — 480,279 Corporate — 6,652,998 — — 6,652,998 Municipal — 244,459 — — 244,459 Residential mortgage-backed — 572,239 — — 572,239 Commercial mortgage-backed — 987,254 — — 987,254 Asset-backed — 935,593 — — 935,593 $ — $ 10,703,957 $ — $ — $ 10,703,957 Other assets included within funds held - directly managed $ — $ 9,247 $ — $ — $ 9,247 Equities: Publicly traded equity investments $ 263,046 $ 41,655 $ — $ — $ 304,701 Exchange-traded funds 504,793 — — — 504,793 Privately held equity investments — — 348,725 — 348,725 $ 767,839 $ 41,655 $ 348,725 $ — $ 1,158,219 Other investments: Hedge funds (1) $ — $ — $ — $ 73,130 $ 73,130 Fixed income funds — 266,889 — 337,000 603,889 Equity funds — 5,617 — — 5,617 Private equity funds — — — 536,368 536,368 CLO equities — 145,103 — — 145,103 CLO equity funds — — — 190,158 190,158 Private credit funds — — — 242,359 242,359 Other — — 314 17,655 17,969 $ — $ 417,609 $ 314 $ 1,396,670 $ 1,814,593 Total Investments $ 767,839 $ 11,172,468 $ 349,039 $ 1,396,670 $ 13,686,016 Cash and cash equivalents $ 414,623 $ 33,005 $ — $ — $ 447,628 Reinsurance balances recoverable on paid and unpaid losses: $ — $ — $ 492,343 $ — $ 492,343 Other Assets: Derivatives qualifying as hedging $ — $ 17,583 $ — $ — $ 17,583 Derivatives not qualifying as hedging — 4,571 — — 4,571 Derivative instruments $ — $ 22,154 $ — $ — $ 22,154 Losses and LAE: $ — $ — $ 2,234,105 $ — $ 2,234,105 Other Liabilities: Derivatives qualifying as hedging $ — $ 2 $ — $ — $ 2 Derivatives not qualifying as hedging — 3,129 — — 3,129 Derivative instruments $ — $ 3,131 $ — $ — $ 3,131 December 31, 2020 Quoted Prices in Significant Significant Fair Value Based on NAV as Practical Expedient Total Fair Investments: Short-term and fixed maturity investments: U.S. government and agency $ — $ 951,048 $ — $ — $ 951,048 U.K government — 51,082 — — 51,082 Other government — 502,153 — — 502,153 Corporate — 5,686,732 — — 5,686,732 Municipal — 162,669 — — 162,669 Residential mortgage-backed — 553,945 — — 553,945 Commercial mortgage-backed — 854,090 — — 854,090 Asset-backed — 557,460 — — 557,460 $ — $ 9,319,179 $ — $ — $ 9,319,179 Other assets included within funds held - directly managed $ — $ 14,627 $ — $ — $ 14,627 Equities: Publicly traded equity investments $ 229,167 $ 31,600 $ — $ — $ 260,767 Exchange-traded funds 311,287 — — — 311,287 Privately held equity investments — — 274,741 — 274,741 $ 540,454 $ 31,600 $ 274,741 $ — $ 846,795 Other investments: Hedge funds (1) $ — $ — $ — $ 2,638,339 $ 2,638,339 Fixed income funds — 285,837 — 266,704 552,541 Equity funds — 5,073 — 185,694 190,767 Private equity funds — — — 363,103 363,103 CLO equities — 128,083 — — 128,083 CLO equity funds — — — 166,523 166,523 Private credit funds — — 9,250 183,069 192,319 Other — — 314 12,045 12,359 $ — $ 418,993 $ 9,564 $ 3,815,477 $ 4,244,034 Total Investments $ 540,454 $ 9,784,399 $ 284,305 $ 3,815,477 $ 14,424,635 Cash and cash equivalents $ 385,790 $ 208,272 $ — $ — $ 594,062 Reinsurance balances recoverable on paid and unpaid losses: $ — $ — $ 520,830 $ — $ 520,830 Other Assets: Derivatives qualifying as hedging $ — $ 1,169 $ — $ — $ 1,169 Derivatives not qualifying as hedging — 2,964 — — 2,964 Derivative instruments $ — $ 4,133 $ — $ — $ 4,133 Losses and LAE: $ — $ — $ 2,452,920 $ — $ 2,452,920 Other Liabilities: Derivatives qualifying as hedging $ — $ 28,947 $ — $ — $ 28,947 Derivatives not qualifying as hedging — 5,195 — — 5,195 Derivative instruments $ — $ 34,142 $ — $ — $ 34,142 (1) Effective April 1, 2021, the InRe Fund was consolidated by us. As a result, the carrying amounts of the assets and liabilities of the InRe Fund are presented separately in “Variable interest entity assets of the InRe Fund” and “Variable interest entity liabilities of the InRe Fund” within the condensed consolidated balance sheet as of June 30, 2021. Refer to Note 11 - "Variable Interest Entities" for additional information. As of December 31, 2020, our investment in the InRe Fund was $2.4 billion. |
Reconciliation for Assets Measured at Fair Value on a Recurring Basis | The following tables present a reconciliation of the beginning and ending balances for all investments measured at fair value on a recurring basis using Level 3 inputs: Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Privately-held Equities Other Investments Total Privately-held Equities Other Investments Total Beginning fair value $ 330,404 $ 9,564 $ 339,968 $ 267,012 $ 314 $ 267,326 Purchases 19,652 — 19,652 34 — 34 Sales and paydowns — (9,250) (9,250) — — — Total realized and unrealized gains (losses) (1,331) — (1,331) 3,954 — 3,954 Transfer out of Level 3 into Level 2 — — — — — — Ending fair value $ 348,725 $ 314 $ 349,039 $ 271,000 $ 314 $ 271,314 Six months ended June 30, 2021 Six months ended June 30, 2020 Privately-held Equities Other Investments Total Privately-held Equities Other Investments Total Beginning fair value $ 274,741 $ 9,564 $ 284,305 $ 265,799 $ 87,869 $ 353,668 Purchases 76,844 — 76,844 1,392 37,092 38,484 Sales and paydowns — (9,250) (9,250) — (539) (539) Total realized and unrealized losses (2,860) — (2,860) 3,809 (40,368) (36,559) Transfer out of Level 3 into Level 2 — — — — (83,740) (83,740) Ending fair value $ 348,725 $ 314 $ 349,039 $ 271,000 $ 314 $ 271,314 The following table presents a reconciliation of the beginning and ending balances for all insurance contracts measured at fair value on a recurring basis using Level 3 inputs: Three Months Ended June 30, 2021 2020 Liability for losses and LAE Reinsurance balances recoverable Net Liability for losses and LAE Reinsurance balances recoverable Net Beginning fair value $ 2,277,382 $ 490,814 $ 1,786,568 $ 2,345,543 $ 653,396 $ 1,692,147 Assumed business — — — (4,975) — (4,975) Incurred losses and LAE: Increase (reduction) in estimates of ultimate losses (4,277) 6,258 (10,535) (21,075) (4,951) (16,124) Reduction in unallocated LAE (3,264) — (3,264) (3,299) — (3,299) Change in fair value 24,174 6,461 17,713 175,787 41,744 134,043 Total incurred losses and LAE 16,633 12,719 3,914 151,413 36,793 114,620 Paid losses (60,637) (11,306) (49,331) (62,279) (22,321) (39,958) Effect of exchange rate movements 727 116 611 24,837 3,516 21,321 Ending fair value $ 2,234,105 $ 492,343 $ 1,741,762 $ 2,454,539 $ 671,384 $ 1,783,155 Six Months Ended June 30, 2021 2020 Liability for losses and LAE Reinsurance balances recoverable Net Liability for losses and LAE Reinsurance balances recoverable Net Beginning fair value $ 2,452,920 $ 520,830 $ 1,932,090 $ 2,621,122 $ 695,518 $ 1,925,604 Incurred losses and LAE: Reduction in estimates of ultimate losses (12,500) 6,967 (19,467) (35,514) (8,122) (27,392) Reduction in unallocated LAE (7,659) — (7,659) (9,712) — (9,712) Change in fair value (69,909) (12,150) (57,759) 110,983 35,177 75,806 Total incurred losses and LAE (90,068) (5,183) (84,885) 65,757 27,055 38,702 Paid losses (134,587) (23,289) (111,298) (143,442) (38,435) (105,007) Effect of exchange rate movements 5,840 (15) 5,855 (88,898) (12,754) (76,144) Ending fair value $ 2,234,105 $ 492,343 $ 1,741,762 $ 2,454,539 $ 671,384 $ 1,783,155 The following table presents the components of the net change in fair value: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Changes in fair value due to changes in: Duration $ 4,005 $ 3,702 $ 5,571 $ 7,850 Corporate bond yield 13,708 130,341 (63,330) 66,249 Weighted cost of capital — — — (5,048) Risk cost of capital — — — 6,755 Change in fair value $ 17,713 $ 134,043 $ (57,759) $ 75,806 |
Valuation Inputs and Techniques | The table below presents the qualitative information related to the fair value measurements for our privately held equity investments measured at fair value on a recurring basis using Level 3 inputs: Qualitative Information about Level 3 Fair Value Measurements Fair Value as of June 30, 2021 Valuation Techniques Unobservable Input Range (Average) (1) (in millions of U.S. dollars) $ 227.4 Guideline company methodology Distribution waterfall 12.8 41.0 Cost as approximation of fair value Cost as approximation of fair value 68.5 Transaction price approximates fair value Discount rate 10% - 12.5% (11.3%) 1.2x - 1.3x (1.3x) 12.1 Net Asset Value (2) NAV at recent transaction 19.9 $ 349.0 (1) The average represents the arithmetic average of the inputs and is not weighted by the relative fair value. (2) This relates to our direct investment in the equity of a privately held business development company ("BDC") which follows the Investment Company accounting guidance in ASC 946 and therefore values its underlying investments using NAV as a practical expedient as permitted by ASC 946. Our valuation of our equity interest in this BDC is therefore based on the NAV provided by the BDC, subject to our own independent validation procedures. |
Reconciliation for Liabilities Measured at Fair Value on a Recurring Basis | The following table presents a reconciliation of the beginning and ending balances for all insurance contracts measured at fair value on a recurring basis using Level 3 inputs: Three Months Ended June 30, 2021 2020 Liability for losses and LAE Reinsurance balances recoverable Net Liability for losses and LAE Reinsurance balances recoverable Net Beginning fair value $ 2,277,382 $ 490,814 $ 1,786,568 $ 2,345,543 $ 653,396 $ 1,692,147 Assumed business — — — (4,975) — (4,975) Incurred losses and LAE: Increase (reduction) in estimates of ultimate losses (4,277) 6,258 (10,535) (21,075) (4,951) (16,124) Reduction in unallocated LAE (3,264) — (3,264) (3,299) — (3,299) Change in fair value 24,174 6,461 17,713 175,787 41,744 134,043 Total incurred losses and LAE 16,633 12,719 3,914 151,413 36,793 114,620 Paid losses (60,637) (11,306) (49,331) (62,279) (22,321) (39,958) Effect of exchange rate movements 727 116 611 24,837 3,516 21,321 Ending fair value $ 2,234,105 $ 492,343 $ 1,741,762 $ 2,454,539 $ 671,384 $ 1,783,155 Six Months Ended June 30, 2021 2020 Liability for losses and LAE Reinsurance balances recoverable Net Liability for losses and LAE Reinsurance balances recoverable Net Beginning fair value $ 2,452,920 $ 520,830 $ 1,932,090 $ 2,621,122 $ 695,518 $ 1,925,604 Incurred losses and LAE: Reduction in estimates of ultimate losses (12,500) 6,967 (19,467) (35,514) (8,122) (27,392) Reduction in unallocated LAE (7,659) — (7,659) (9,712) — (9,712) Change in fair value (69,909) (12,150) (57,759) 110,983 35,177 75,806 Total incurred losses and LAE (90,068) (5,183) (84,885) 65,757 27,055 38,702 Paid losses (134,587) (23,289) (111,298) (143,442) (38,435) (105,007) Effect of exchange rate movements 5,840 (15) 5,855 (88,898) (12,754) (76,144) Ending fair value $ 2,234,105 $ 492,343 $ 1,741,762 $ 2,454,539 $ 671,384 $ 1,783,155 The following table presents the components of the net change in fair value: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Changes in fair value due to changes in: Duration $ 4,005 $ 3,702 $ 5,571 $ 7,850 Corporate bond yield 13,708 130,341 (63,330) 66,249 Weighted cost of capital — — — (5,048) Risk cost of capital — — — 6,755 Change in fair value $ 17,713 $ 134,043 $ (57,759) $ 75,806 |
Quantitative Information | Below is a summary of the quantitative information regarding the significant observable and unobservable inputs used in the internal model to determine fair value on a recurring basis: June 30, 2021 December 31, 2020 Valuation Technique Unobservable (U) and Observable (O) Inputs Weighted Average Weighted Average Internal model Corporate bond yield (O) A rated A rated Internal model Credit spread for non-performance risk (U) 0.2% 0.2% Internal model Risk cost of capital (U) 5.1% 5.1% Internal model Weighted average cost of capital (U) 8.25% 8.25% Internal model Duration - liability (U) 8.21 years 8.17 years Internal model Duration - reinsurance balances recoverable on paid and unpaid losses (U) 7.88 years 8.23 years |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Marketable Securities | The fair values of the underlying asset categories comprising our short-term and fixed maturity investments classified as trading and AFS and the fixed maturity investments included within our funds held - directly managed balance were as follows: June 30, 2021 Short-term investments, trading Short-term investments, AFS Fixed maturities, trading Fixed maturities, AFS Fixed maturities, funds held - directly managed Total U.S. government and agency $ 15,683 $ 88,177 $ 109,398 $ 450,424 $ 125,757 $ 789,439 U.K. government — — 30,110 11,586 — 41,696 Other government 4,105 — 334,134 125,647 16,393 480,279 Corporate — 22,296 2,884,794 3,225,992 519,916 6,652,998 Municipal — — 86,860 105,550 52,049 244,459 Residential mortgage-backed — — 130,711 397,707 43,821 572,239 Commercial mortgage-backed — — 296,776 483,990 206,488 987,254 Asset-backed — — 215,619 665,142 54,832 935,593 Total fixed maturity and short-term investments $ 19,788 $ 110,473 $ 4,088,402 $ 5,466,038 $ 1,019,256 $ 10,703,957 December 31, 2020 Short-term investments, trading Short-term investments, AFS Fixed maturities, trading Fixed maturities, AFS Fixed maturities, funds held - directly managed Total U.S. government and agency $ — $ 243,556 $ 123,874 $ 474,442 $ 109,176 $ 951,048 U.K. government — — 37,508 13,574 — 51,082 Other government 3,424 3,213 327,437 146,914 21,165 502,153 Corporate 1,705 17,026 3,227,726 1,920,323 519,952 5,686,732 Municipal — — 79,959 30,032 52,678 162,669 Residential mortgage-backed — — 154,471 328,871 70,603 553,945 Commercial mortgage-backed — — 347,225 276,488 230,377 854,090 Asset-backed — — 296,692 204,456 56,312 557,460 Total fixed maturity and short-term investments $ 5,129 $ 263,795 $ 4,594,892 $ 3,395,100 $ 1,060,263 $ 9,319,179 |
Credit Ratings Company's Fixed Maturity and Short-Term Investments Available-for-Sale | The following table sets forth the credit ratings of our short-term and fixed maturity investments classified as trading and AFS and the fixed maturity investments included within our funds held - directly managed balance as of June 30, 2021: Amortized Fair Value % of Total AAA AA Rated A Rated BBB Non- Not Rated U.S. government and agency $ 784,054 $ 789,439 7.4 % $ 788,822 $ 381 $ — $ 236 $ — $ — U.K. government 40,011 41,696 0.4 % — 34,379 7,317 — — — Other government 460,069 480,279 4.5 % 213,984 168,864 46,640 45,889 4,902 — Corporate 6,378,115 6,652,998 62.2 % 166,647 663,162 2,964,842 2,550,601 291,394 16,352 Municipal 227,235 244,459 2.3 % 11,820 129,533 82,076 20,937 — 93 Residential mortgage-backed 569,169 572,239 5.3 % 557,182 2,423 2,201 8,920 1,413 100 Commercial mortgage-backed 966,496 987,254 9.2 % 705,402 116,062 85,728 71,649 3,831 4,582 Asset-backed 939,474 935,593 8.7 % 348,411 279,778 199,722 82,737 21,781 3,164 Total $ 10,364,623 $ 10,703,957 100.0 % $ 2,792,268 $ 1,394,582 $ 3,388,526 $ 2,780,969 $ 323,321 $ 24,291 % of total fair value 26.1 % 13.0 % 31.7 % 26.0 % 3.0 % 0.2 % |
Schedule of Equity Securities | The following table summarizes our equity investments classified as trading: June 30, 2021 December 31, 2020 Publicly traded equity investments in common and preferred stocks $ 304,701 $ 260,767 Exchange-traded funds 504,793 311,287 Privately held equity investments in common and preferred stocks 348,725 274,741 $ 1,158,219 $ 846,795 |
Major Categories of Net Investment Income | Major categories of net investment income are summarized as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Fixed maturity investments $ 46,996 $ 52,837 $ 92,477 $ 106,279 Short-term investments and cash and cash equivalents (188) 752 (182) 3,377 Funds held by reinsured companies 32,420 24,099 32,008 24,369 Funds held - directly managed 6,894 10,685 13,931 19,501 Investment income from fixed maturities and cash and cash equivalents 86,122 88,373 138,234 153,526 Equity investments 4,632 3,762 8,930 9,725 Other investments 8,831 5,291 18,125 13,384 Investment income from equities and other investments 13,463 9,053 27,055 23,109 Gross investment income 99,585 97,426 165,289 176,635 Investment expenses (3,267) (2,983) (6,882) (7,478) Net investment expenses of the InRe Fund (1) (20,171) — (20,171) — Net investment income $ 76,147 $ 94,443 $ 138,236 $ 169,157 (1) Effective April 1, 2021, the InRe Fund was consolidated by us. Refer to Note 11 - "Variable Interest Entities" for additional information. Prior to this, all income or loss from the InRe Fund was determined by the change in net asset value (NAV) of our holdings in the fund, which was included within net realized and unrealized gains (losses) from other investments. |
Unrealized Gain (Loss) on Investments | Components of net realized and unrealized gains (losses) were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net realized gains (losses) on sales: Gross realized gains on fixed maturity securities, AFS $ 3,494 $ 8,577 $ 8,265 $ 10,124 Gross realized losses on fixed maturity securities, AFS (2,864) (4,567) (6,766) (6,593) Decrease (increase) in allowance for expected credit losses on fixed maturity securities, AFS 5,090 9,002 (7,137) (2,637) Net realized gains on fixed maturity securities, trading 11,275 41,556 29,039 57,380 Net realized gains on funds held - directly managed 728 1,741 1,252 2,253 Net realized gains on equity investments 1,033 1,886 63 879 Net realized investment losses on investment derivatives (259) — (80) — Net realized gains of the InRe Fund (1) 321,705 — 321,705 — Total net realized gains on sales $ 340,202 $ 58,195 $ 346,341 $ 61,406 Net unrealized gains (losses): Fixed maturity securities, trading $ 40,011 $ 300,948 $ (128,912) $ 44,471 Fixed maturity securities in funds held - directly managed 17,530 60,107 (26,660) 34,805 Equity investments 52,003 39,333 81,964 (52,619) Other Investments (1) 60,500 143,971 139,983 (69,712) Investment derivatives (51) — 84 — Net unrealized gains (losses) of the InRe Fund (1) (104,975) 365,054 (28,368) 320,196 Total net unrealized gains $ 65,018 $ 909,413 $ 38,091 $ 277,141 Net realized and unrealized gains $ 405,220 $ 967,608 $ 384,432 $ 338,547 |
Realized Gain (Loss) on Investments | Components of net realized and unrealized gains (losses) were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net realized gains (losses) on sales: Gross realized gains on fixed maturity securities, AFS $ 3,494 $ 8,577 $ 8,265 $ 10,124 Gross realized losses on fixed maturity securities, AFS (2,864) (4,567) (6,766) (6,593) Decrease (increase) in allowance for expected credit losses on fixed maturity securities, AFS 5,090 9,002 (7,137) (2,637) Net realized gains on fixed maturity securities, trading 11,275 41,556 29,039 57,380 Net realized gains on funds held - directly managed 728 1,741 1,252 2,253 Net realized gains on equity investments 1,033 1,886 63 879 Net realized investment losses on investment derivatives (259) — (80) — Net realized gains of the InRe Fund (1) 321,705 — 321,705 — Total net realized gains on sales $ 340,202 $ 58,195 $ 346,341 $ 61,406 Net unrealized gains (losses): Fixed maturity securities, trading $ 40,011 $ 300,948 $ (128,912) $ 44,471 Fixed maturity securities in funds held - directly managed 17,530 60,107 (26,660) 34,805 Equity investments 52,003 39,333 81,964 (52,619) Other Investments (1) 60,500 143,971 139,983 (69,712) Investment derivatives (51) — 84 — Net unrealized gains (losses) of the InRe Fund (1) (104,975) 365,054 (28,368) 320,196 Total net unrealized gains $ 65,018 $ 909,413 $ 38,091 $ 277,141 Net realized and unrealized gains $ 405,220 $ 967,608 $ 384,432 $ 338,547 |
Estimated Fair Value and Unrealized Gains (Losses) on Derivative Instruments | The following table presents the gross notional amounts and estimated fair values recorded within other assets and liabilities related to our qualifying foreign currency forward exchange rate contracts: June 30, 2021 December 31, 2020 Gross Notional Amount Fair Value Gross Notional Amount Fair Value Assets Liabilities Assets Liabilities Foreign currency forward - AUD $ 64,543 $ 2,165 $ — $ 73,852 $ 13 $ 5,060 Foreign currency forward - EUR 250,592 7,626 — 217,168 205 8,889 Foreign currency forward - GBP 306,376 7,792 2 312,671 951 14,998 Total qualifying hedges $ 621,511 $ 17,583 $ 2 $ 603,691 $ 1,169 $ 28,947 The following table presents the net gains and losses deferred in the cumulative translation adjustment ("CTA") account, which is a component of AOCI, in shareholders' equity, relating to our foreign currency forward exchange rate contracts: Amount of Gains (Losses) Deferred in AOCI Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Foreign currency forward - AUD $ 999 $ (7,435) $ 1,535 $ 1,036 Foreign currency forward - EUR (1,552) (3,111) 7,782 (476) Foreign currency forward - GBP (502) 505 (3,690) 21,317 Net gains (losses) on qualifying derivative hedges $ (1,055) $ (10,041) $ 5,627 $ 21,877 The following table presents the gross notional amounts and estimated fair values recorded within other assets and other liabilities related to our non-qualifying foreign currency forward exchange rate hedging relationships: June 30, 2021 December 31, 2020 Gross Notional Amount Fair Value Gross Notional Amount Fair Value Assets Liabilities Assets Liabilities Foreign currency forward - AUD $ 27,436 $ 2,092 $ 831 $ 28,848 $ 882 $ 2,847 Foreign currency forward - CAD 47,228 1,467 48 64,224 10 1,764 Foreign currency forward - EUR 80,569 — 2,064 43,531 1,782 41 Foreign currency forward - GBP 62,103 938 59 2,731 161 404 Total non-qualifying hedges $ 217,336 $ 4,497 $ 3,002 $ 139,334 $ 2,835 $ 5,056 The following table presents the amounts of the net gains and losses included in earnings related to our non-qualifying foreign currency forward exchange rate contracts: Gains (losses) on non-qualifying-hedges charged to net earnings Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Foreign currency forward - AUD $ 494 $ (2,978) $ 1,333 $ (445) Foreign currency forward - CAD (480) (2,225) (1,289) 2,771 Foreign currency forward - EUR 274 (224) (2,051) 952 Foreign currency forward - GBP 338 924 718 $ 1,500 Net gains (losses) on non-qualifying hedges $ 626 $ (4,503) $ (1,289) $ 4,778 The following tables present the gross notional amounts and estimated fair values recorded within other assets and other liabilities related to our credit default swaps, government bond futures contracts and currency forward contracts: June 30, 2021 December 31, 2020 Gross Notional Amount Fair Value Gross Notional Amount Fair Value Assets Liabilities Assets Liabilities Futures contracts - long positions $ 14,699 $ 56 $ 7 $ 34,502 $ 32 $ 5 Futures contracts - short positions (14,225) 1 54 (32,316) 6 121 Currency forward contracts - long positions - USD 394 10 — 1,428 — 13 Currency forward contracts - short positions - USD (432) — 12 (3,233) 60 — Currency forward contracts - long positions - GBP 7,432 7 — 1,278 19 — Currency forward contracts - short positions - GBP (13,811) — 54 (4,418) 12 — Total $ (5,943) $ 74 $ 127 $ (2,759) $ 129 $ 139 |
Categorized Investments Recorded at Fair Value among Levels | We have categorized our assets and liabilities that are recorded at fair value on a recurring basis among levels based on the observability of inputs, or at fair value using NAV per share (or its equivalent) as follows: June 30, 2021 Quoted Prices in Significant Significant Fair Value Based on NAV as Practical Expedient Total Fair Investments: Short-term and fixed maturity investments: U.S. government and agency $ — $ 789,439 $ — $ — $ 789,439 U.K. government — 41,696 — — 41,696 Other government — 480,279 — — 480,279 Corporate — 6,652,998 — — 6,652,998 Municipal — 244,459 — — 244,459 Residential mortgage-backed — 572,239 — — 572,239 Commercial mortgage-backed — 987,254 — — 987,254 Asset-backed — 935,593 — — 935,593 $ — $ 10,703,957 $ — $ — $ 10,703,957 Other assets included within funds held - directly managed $ — $ 9,247 $ — $ — $ 9,247 Equities: Publicly traded equity investments $ 263,046 $ 41,655 $ — $ — $ 304,701 Exchange-traded funds 504,793 — — — 504,793 Privately held equity investments — — 348,725 — 348,725 $ 767,839 $ 41,655 $ 348,725 $ — $ 1,158,219 Other investments: Hedge funds (1) $ — $ — $ — $ 73,130 $ 73,130 Fixed income funds — 266,889 — 337,000 603,889 Equity funds — 5,617 — — 5,617 Private equity funds — — — 536,368 536,368 CLO equities — 145,103 — — 145,103 CLO equity funds — — — 190,158 190,158 Private credit funds — — — 242,359 242,359 Other — — 314 17,655 17,969 $ — $ 417,609 $ 314 $ 1,396,670 $ 1,814,593 Total Investments $ 767,839 $ 11,172,468 $ 349,039 $ 1,396,670 $ 13,686,016 Cash and cash equivalents $ 414,623 $ 33,005 $ — $ — $ 447,628 Reinsurance balances recoverable on paid and unpaid losses: $ — $ — $ 492,343 $ — $ 492,343 Other Assets: Derivatives qualifying as hedging $ — $ 17,583 $ — $ — $ 17,583 Derivatives not qualifying as hedging — 4,571 — — 4,571 Derivative instruments $ — $ 22,154 $ — $ — $ 22,154 Losses and LAE: $ — $ — $ 2,234,105 $ — $ 2,234,105 Other Liabilities: Derivatives qualifying as hedging $ — $ 2 $ — $ — $ 2 Derivatives not qualifying as hedging — 3,129 — — 3,129 Derivative instruments $ — $ 3,131 $ — $ — $ 3,131 December 31, 2020 Quoted Prices in Significant Significant Fair Value Based on NAV as Practical Expedient Total Fair Investments: Short-term and fixed maturity investments: U.S. government and agency $ — $ 951,048 $ — $ — $ 951,048 U.K government — 51,082 — — 51,082 Other government — 502,153 — — 502,153 Corporate — 5,686,732 — — 5,686,732 Municipal — 162,669 — — 162,669 Residential mortgage-backed — 553,945 — — 553,945 Commercial mortgage-backed — 854,090 — — 854,090 Asset-backed — 557,460 — — 557,460 $ — $ 9,319,179 $ — $ — $ 9,319,179 Other assets included within funds held - directly managed $ — $ 14,627 $ — $ — $ 14,627 Equities: Publicly traded equity investments $ 229,167 $ 31,600 $ — $ — $ 260,767 Exchange-traded funds 311,287 — — — 311,287 Privately held equity investments — — 274,741 — 274,741 $ 540,454 $ 31,600 $ 274,741 $ — $ 846,795 Other investments: Hedge funds (1) $ — $ — $ — $ 2,638,339 $ 2,638,339 Fixed income funds — 285,837 — 266,704 552,541 Equity funds — 5,073 — 185,694 190,767 Private equity funds — — — 363,103 363,103 CLO equities — 128,083 — — 128,083 CLO equity funds — — — 166,523 166,523 Private credit funds — — 9,250 183,069 192,319 Other — — 314 12,045 12,359 $ — $ 418,993 $ 9,564 $ 3,815,477 $ 4,244,034 Total Investments $ 540,454 $ 9,784,399 $ 284,305 $ 3,815,477 $ 14,424,635 Cash and cash equivalents $ 385,790 $ 208,272 $ — $ — $ 594,062 Reinsurance balances recoverable on paid and unpaid losses: $ — $ — $ 520,830 $ — $ 520,830 Other Assets: Derivatives qualifying as hedging $ — $ 1,169 $ — $ — $ 1,169 Derivatives not qualifying as hedging — 2,964 — — 2,964 Derivative instruments $ — $ 4,133 $ — $ — $ 4,133 Losses and LAE: $ — $ — $ 2,452,920 $ — $ 2,452,920 Other Liabilities: Derivatives qualifying as hedging $ — $ 28,947 $ — $ — $ 28,947 Derivatives not qualifying as hedging — 5,195 — — 5,195 Derivative instruments $ — $ 34,142 $ — $ — $ 34,142 (1) Effective April 1, 2021, the InRe Fund was consolidated by us. As a result, the carrying amounts of the assets and liabilities of the InRe Fund are presented separately in “Variable interest entity assets of the InRe Fund” and “Variable interest entity liabilities of the InRe Fund” within the condensed consolidated balance sheet as of June 30, 2021. Refer to Note 11 - "Variable Interest Entities" for additional information. As of December 31, 2020, our investment in the InRe Fund was $2.4 billion. |
Valuation Inputs and Techniques | The table below presents the qualitative information related to the fair value measurements for our privately held equity investments measured at fair value on a recurring basis using Level 3 inputs: Qualitative Information about Level 3 Fair Value Measurements Fair Value as of June 30, 2021 Valuation Techniques Unobservable Input Range (Average) (1) (in millions of U.S. dollars) $ 227.4 Guideline company methodology Distribution waterfall 12.8 41.0 Cost as approximation of fair value Cost as approximation of fair value 68.5 Transaction price approximates fair value Discount rate 10% - 12.5% (11.3%) 1.2x - 1.3x (1.3x) 12.1 Net Asset Value (2) NAV at recent transaction 19.9 $ 349.0 (1) The average represents the arithmetic average of the inputs and is not weighted by the relative fair value. (2) This relates to our direct investment in the equity of a privately held business development company ("BDC") which follows the Investment Company accounting guidance in ASC 946 and therefore values its underlying investments using NAV as a practical expedient as permitted by ASC 946. Our valuation of our equity interest in this BDC is therefore based on the NAV provided by the BDC, subject to our own independent validation procedures. |
Schedule of Nonconsolidated Variable Interest Entities | The table below presents the fair value of our investments in nonconsolidated VIEs as well as our maximum exposure to loss associated with these VIEs: As of June 30, 2021 Fair Value Unfunded Commitments Maximum Exposure to Loss Equities Publicly traded equity investment in common stock $ 60,911 $ — $ 60,911 Other investments Hedge funds $ 73,130 $ — $ 73,130 Fixed income funds 132,229 44,263 176,492 Private equity funds 479,470 781,162 1,260,632 CLO equity funds 190,158 — 190,158 Private credit funds 242,359 72,289 314,648 Other 17,971 38,544 56,515 Total $ 1,135,317 $ 936,258 $ 2,071,575 Total investments in nonconsolidated VIEs $ 1,196,228 $ 936,258 $ 2,132,486 As of December 31, 2020 Fair Value Unfunded Commitments Maximum Exposure to Loss Equities Publicly traded equity investment in common stock $ 54,248 $ — $ 54,248 Other investments Hedge fund $ 2,638,339 $ — $ 2,638,339 Fixed income funds 98,874 16,538 115,412 Private equity funds 361,691 761,969 1,123,660 CLO equity funds 166,524 — 166,524 Private credit funds 183,069 126,455 309,524 Other 12,358 17,674 30,032 Total $ 3,460,855 $ 922,636 $ 4,383,491 Total investments in nonconsolidated VIEs $ 3,515,103 $ 922,636 $ 4,437,739 |
InRe Fund | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Condensed Balance Sheet | The following table presents the assets and liabilities associated with the InRe Fund, as presented within the condensed consolidated balance sheet: June 30, 2021 ASSETS Cash and cash equivalents $ 122,701 Restricted cash held at brokers (1) 879,836 Total cash, cash equivalents and restricted cash 1,002,537 Securities owned, at fair value 1,393,134 Other assets: Derivative assets, at fair value 477,645 Due from brokers 34,835 Receivable from investments sold 4,571 Other assets 800 Total other assets 517,851 Total variable interest entity assets of the InRe Fund $ 2,913,522 LIABILITIES Derivative liabilities, at fair value $ 302,100 Due to brokers 172,821 Securities sold, but not yet purchased, at fair value 135,950 Payable for investments purchased 61,439 Other liabilities 21,500 Total variable interest entity liabilities of the InRe Fund $ 693,810 (1) Includes margin posted as collateral which is considered to be restricted cash. |
Condensed Cash Flow Statement | The following table presents the net cash flows of the InRe Fund for the three and six months ended June 30, 2021, following its consolidation on April 1, 2021 (the cash flows prior to April 1, 2021 are not presented as the InRe Fund was not consolidated): Three and Six Months Ended June 30, 2021 OPERATING ACTIVITIES Net earnings $ 196,558 Adjustments to reconcile net earnings to cash flows: Realized gains on sales of investments and derivatives (321,705) Unrealized losses on investments and derivatives 104,975 Sales of trading securities 2,029,295 Purchases of trading securities (946,950) Payments to cover securities sold short (685,140) Proceeds from securities sold short 244,829 Net payment for derivative contracts (77,773) Changes in: Due from brokers, excluding restricted cash 641,839 Receivable from investments sold 456,996 Due to brokers (353,574) Payable for investments purchased (79,729) Performance fee payable 19,250 Other (415) Subtotal 684,367 Net operating cash flows from the InRe fund 1,228,456 INVESTING ACTIVITIES Consolidation of the InRe Fund opening cash and restricted cash balances 574,081 Net investing cash flows from the InRe fund 574,081 FINANCING ACTIVITIES Enstar capital withdrawals (1) (800,000) Net cash used in financing activities (2) (800,000) NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 1,002,537 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD — CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD $ 1,002,537 (1) Eliminated in the condensed consolidated statement of cash flows. |
Marketable Securities | The fair value of the underlying asset categories comprising the InRe Fund's securities owned classified as trading were as follows: June 30, 2021 Convertible bonds $ 194,275 Corporate bonds 4,518 Total fixed maturity investments $ 198,793 |
Credit Ratings Company's Fixed Maturity and Short-Term Investments Available-for-Sale | The following table sets forth the credit ratings of the InRe Fund's fixed maturity investments classified as trading as of June 30, 2021: Amortized Cost Fair Value % of Total AAA Rated AA Rated A Rated BBB Rated Non-Investment Grade Non-Rated Convertible bonds $ 144,683 $ 194,275 98 % — $ 4,466 $ — $ — $ — $ 189,809 Corporate bonds 4,435 4,518 2 % — — 1,942 — 2,576 — Total 149,118 198,793 100 % $ — $ 4,466 $ 1,942 $ — $ 2,576 $ 189,809 $ of total fair value — % 2.2 % 1.0 % — % 1.3 % 95.5 % |
Schedule of Equity Securities | The following table summarizes the InRe Fund's equity investments classified as trading: June 30, 2021 Publicly traded equity investments in common and preferred stocks $ 1,079,679 Exchange-traded funds 55,655 $ 1,135,334 |
Major Categories of Net Investment Income | Major categories of net investment income (expense) for the InRe Fund are summarized as follows: Three and Six Months Ended June 30, 2021 Fixed maturity investments $ 456 Equity and other investments 2,139 Investment income 2,595 Investment expenses (22,766) Net investment expenses $ (20,171) |
Unrealized Gain (Loss) on Investments | Components of net realized and unrealized gains (losses) for the InRe Fund were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net realized gains on sale: Fixed maturity securities $ 54,683 $ — $ 54,683 $ — Equity investments 105,777 — 105,777 — Derivatives 161,245 — 161,245 — Total net realized gains $ 321,705 $ — $ 321,705 $ — Net unrealized gains (losses): Fixed maturity securities $ (19,803) $ — $ (19,803) $ — Equity investments 66,620 — 66,620 — Other investments 2,211 — 2,211 — Derivatives (154,003) — (154,003) — Change in net asset value of the investment in the InRe Fund (1) — 365,054 76,607 320,196 Total net unrealized gains (losses) (104,975) 365,054 (28,368) 320,196 Net realized and unrealized gains $ 216,730 $ 365,054 $ 293,337 $ 320,196 (1) Prior to the consolidation of the InRe Fund on April 1, 2021, all income or (loss) from the InRe Fund was determined by the change in NAV of our holdings in the fund, which was included within net unrealized gains (losses) from other investments. |
Realized Gain (Loss) on Investments | Components of net realized and unrealized gains (losses) for the InRe Fund were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net realized gains on sale: Fixed maturity securities $ 54,683 $ — $ 54,683 $ — Equity investments 105,777 — 105,777 — Derivatives 161,245 — 161,245 — Total net realized gains $ 321,705 $ — $ 321,705 $ — Net unrealized gains (losses): Fixed maturity securities $ (19,803) $ — $ (19,803) $ — Equity investments 66,620 — 66,620 — Other investments 2,211 — 2,211 — Derivatives (154,003) — (154,003) — Change in net asset value of the investment in the InRe Fund (1) — 365,054 76,607 320,196 Total net unrealized gains (losses) (104,975) 365,054 (28,368) 320,196 Net realized and unrealized gains $ 216,730 $ 365,054 $ 293,337 $ 320,196 (1) Prior to the consolidation of the InRe Fund on April 1, 2021, all income or (loss) from the InRe Fund was determined by the change in NAV of our holdings in the fund, which was included within net unrealized gains (losses) from other investments. |
Estimated Fair Value and Unrealized Gains (Losses) on Derivative Instruments | The following table presents the notional values and estimated fair value by instrument as disclosed within the condensed consolidated balance sheet, before counterparty netting, as of June 30, 2021: June 30, 2021 Fair Value Notional Value Derivatives Not Designated as Hedging Instruments Derivative Assets Option contracts $ 431,211 $ 1,345,380 Forward contracts 46,434 292,882 Total derivative assets of the InRe Fund $ 477,645 $ 1,638,262 Derivative Liabilities Option contracts $ 256,801 $ 2,140,967 Forward contracts 45,299 1,233,086 Total derivative liabilities of the InRe Fund $ 302,100 $ 3,374,053 The following table presents the income from derivative instruments included within the consolidated statements of earnings for the three and six months ended June 30, 2021 (following consolidation of the InRe Fund on April 1, 2021): Three and Six Months Ended June 30, 2021 Derivatives Not Designated as Hedging Instruments Option contracts $ 82 Forward contracts 7,160 Total net gain from derivative instruments, presented as a component of net realized and unrealized gains $ 7,242 |
Offsetting Assets | The following table provides disclosure regarding the potential effect of offsetting of recognized assets presented in the condensed consolidated balance sheet: As of June 30, 2021 Gross Amounts of Recognized Derivative Assets Gross Derivative Liability Amounts Offset in the Balance Sheet Net Amounts of Derivative Assets Presented in the Balance Sheet Gross Amounts of Derivative Liabilities Not Offset in the Balance Sheet Cash Collateral Received Net Asset Amount UBS AG $ 197,794 $ — $ 197,794 $ (129,558) $ — $ 68,236 Morgan Stanley 54,285 — 54,285 (43,092) — 11,193 Goldman Sachs 34,319 — 34,319 (15,999) — 18,320 Merrill Lynch 168,882 — 168,882 (94,345) — 74,537 JP Morgan 22,305 — 22,305 (17,041) — 5,264 Other 60 — 60 (60) — — Total $ 477,645 $ — $ 477,645 $ (300,095) $ — $ 177,550 The following table provides disclosure regarding the potential effect of offsetting of recognized liabilities presented in the condensed consolidated balance sheet: As of June 30, 2021 Gross Amounts of Recognized Derivative Liabilities Gross Derivative Asset Amounts Offset in the Balance Sheet Net Amounts of Derivative Liabilities Presented in the Balance Sheet Gross Amounts of Derivative Assets Not Offset in the Balance Sheet Cash Collateral Pledged (1) Net Amount UBS AG $ (129,558) $ — $ (129,558) $ 129,558 $ — $ — Morgan Stanley (43,092) — (43,092) 43,092 — — Goldman Sachs (15,999) — (15,999) 15,999 — — Merrill Lynch (94,345) — (94,345) 94,345 — — JP Morgan (17,041) — (17,041) 17,041 — — Other (2,065) — (2,065) 985 1,080 — Total $ (302,100) $ — $ (302,100) $ 301,020 $ 1,080 $ — (1) Collateral amounts presented, if any, are limited to the derivative balances and, accordingly, do not include any excess collateral received or pledged. Total collateral pledged not presented above was $68.6 million with Barclays Bank Plc, $520.0 million with Goldman Sachs, $1.0 million with HSBC Bank Plc, $96.9 million with Merrill Lynch International, $121.4 million with Morgan Stanley and $70.7 million with UBS AG. |
Categorized Investments Recorded at Fair Value among Levels | We have categorized the InRe Fund's assets and liabilities that are recorded at fair value on a recurring basis among levels based on the observability of inputs as follows: June 30, 2021 (in thousands) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Securities owned: Equities $ 1,135,334 $ — $ — $ 1,135,334 Warrants and rights — 59,007 — 59,007 Convertible bonds — 147,348 46,927 194,275 Corporate bonds — 4,518 — 4,518 Total securities owned 1,135,334 210,873 46,927 1,393,134 Derivatives assets: Option contracts — 431,211 — 431,211 Forward contracts — 46,434 — 46,434 Total derivative assets — 477,645 — 477,645 Securities sold, not yet purchased: Equities 89,427 — — 89,427 Corporate bonds — 46,523 — 46,523 Total securities sold, but not yet purchased 89,427 46,523 — 135,950 Derivative liabilities: Option contracts — 256,801 — 256,801 Forward contracts 7,003 38,296 — 45,299 Total Derivatives liabilities $ 7,003 $ 295,097 $ — $ 302,100 |
Valuation Inputs and Techniques | The table below presents the qualitative information related to the fair value measurements for convertible bond investment measured at fair value on a recurring basis using Level 3 inputs: Qualitative Information about Level 3 Fair Value Measurements Fair Value as of June 30, 2021 Valuation Techniques Unobservable Input Range (Average) Unrealized Gain $ 46,927 Broker Pricing (1) (1) $ 16,927 (1) Where quoted market prices in active markets are not available to estimate fair values for recognition and disclosure purposes, the InRe Fund uses Broker Pricing, a technique that relies on unobservable inputs for the determination of fair value and involves a level of judgement and uncertainty. Changes in the broker price that reasonably could have been different at the reporting date may result in a higher or lower determination of fair value. |
Premiums Written and Earned (Ta
Premiums Written and Earned (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Insurance [Abstract] | |
Schedule of Net Premiums Written and Earned | The following tables provide the total reinsurance balances recoverable on paid and unpaid losses: June 30, 2021 Run-off (1) Legacy Underwriting (1) Corporate & Other Total Recoverable from reinsurers on unpaid: Outstanding losses $ 1,179,211 $ 25,872 $ — $ 1,205,083 IBNR 563,115 49,444 — 612,559 ULAE 16,901 954 — 17,855 Fair value adjustments - acquired companies — — (14,165) (14,165) Fair value adjustments - fair value option — — (33,607) (33,607) Total reinsurance reserves recoverable 1,759,227 76,270 (47,772) 1,787,725 Paid losses recoverable 188,602 400 — 189,002 Total $ 1,947,829 $ 76,670 $ (47,772) $ 1,976,727 Reconciliation to Condensed Consolidated Balance Sheet: Reinsurance balances recoverable on paid and unpaid losses $ 1,421,879 $ 76,670 $ (14,165) $ 1,484,384 Reinsurance balances recoverable on paid and unpaid losses - fair value option 525,950 — (33,607) 492,343 Total $ 1,947,829 $ 76,670 $ (47,772) $ 1,976,727 (1) Effective January 1, 2021, the net loss reserves of StarStone International were transferred from the Legacy Underwriting segment to the Run-off segment. Refer to Note 22 - "Segment Information" for further details. December 31, 2020 Run-off Legacy Underwriting Corporate & Other Total Recoverable from reinsurers on unpaid: Outstanding losses $ 938,231 $ 263,638 $ — $ 1,201,869 IBNR 508,082 139,761 — 647,843 ULAE 16,688 — — 16,688 Fair value adjustments - acquired companies — — (15,353) (15,353) Fair value adjustments - fair value option — — (21,427) (21,427) Total reinsurance reserves recoverable 1,463,001 403,399 (36,780) 1,829,620 Paid losses recoverable 172,309 87,234 — 259,543 Total $ 1,635,310 $ 490,633 $ (36,780) $ 2,089,163 Reconciliation to Condensed Consolidated Balance Sheet: Reinsurance balances recoverable on paid and unpaid losses $ 1,093,053 $ 490,633 $ (15,353) $ 1,568,333 Reinsurance balances recoverable on paid and unpaid losses - fair value option 542,257 — (21,427) 520,830 Total $ 1,635,310 $ 490,633 $ (36,780) $ 2,089,163 The following tables show our gross and net balances recoverable from our reinsurers as well as the related allowance for estimated uncollectible reinsurance broken down by the credit ratings of our reinsurers. The majority of the allowance for estimated uncollectible reinsurance relates to the Run-off segment. June 30, 2021 Gross Allowance for estimated uncollectible reinsurance Net Provisions as a Reinsurers rated A- or above $ 1,385,215 $ 61,010 $ 1,324,205 4.4 % Reinsurers rated below A-, secured 599,123 — 599,123 — % Reinsurers rated below A-, unsecured 132,877 79,478 53,399 59.8 % Total $ 2,117,215 $ 140,488 $ 1,976,727 6.6 % December 31, 2020 Gross Allowance for estimated uncollectible reinsurance Net Provisions as a Reinsurers rated A- or above $ 1,464,529 $ 60,801 $ 1,403,728 4.2 % Reinsurers rated below A-, secured 608,999 — 608,999 — % Reinsurers rated below A-, unsecured 152,757 76,321 76,436 50.0 % Total $ 2,226,285 $ 137,122 $ 2,089,163 6.2 % The following table provides a summary of premiums written and earned by segment: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Premiums Premiums Premiums Premiums Premiums Written Premiums Earned Premiums Written Premiums Earned Run-off Gross $ 8,001 $ 61,564 $ (2,155) $ 14,395 $ 30,184 $ 155,770 $ (1,828) $ 32,473 Ceded 2,160 (19,160) (1,048) (3,878) (15,525) (40,530) 801 (5,926) Net $ 10,161 $ 42,404 $ (3,203) $ 10,517 $ 14,659 $ 115,240 $ (1,027) $ 26,547 Legacy Underwriting Gross $ 13,515 $ 38,060 $ 141,547 $ 167,235 $ 41,089 $ 86,119 $ 350,981 $ 344,278 Ceded (6,501) (20,820) (17,568) (34,881) (22,608) (48,839) (74,719) (68,603) Net $ 7,014 $ 17,240 $ 123,979 $ 132,354 $ 18,481 $ 37,280 $ 276,262 $ 275,675 Total Gross $ 21,516 $ 99,624 $ 139,392 $ 181,630 $ 71,273 $ 241,889 $ 349,153 $ 376,751 Ceded (4,341) (39,980) (18,616) (38,759) (38,133) (89,369) (73,918) (74,529) Total $ 17,175 $ 59,644 $ 120,776 $ 142,871 $ 33,140 $ 152,520 $ 275,235 $ 302,222 |
Debt Obligations and Credit F_2
Debt Obligations and Credit Facilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Amounts of Loans Payable Outstanding, and Accrued Interest | Our debt obligations were as follows: Facility Origination Date Term June 30, 2021 December 31, 2020 4.50% Senior Notes due 2022 March 10, 2017 5 years $ 349,492 $ 349,253 4.95% Senior Notes due 2029 May 28, 2019 10 years 494,777 494,194 Total Senior Notes 844,269 843,447 5.75% Junior Subordinated Notes due 2040 August 26, 2020 20 years 344,943 344,812 EGL Revolving Credit Facility August 16, 2018 5 years 175,000 185,000 Total debt obligations $ 1,364,212 $ 1,373,259 |
Interest Expense | The table below provides a summary of the total interest expense: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Interest expense on debt obligations $ 15,896 $ 13,675 $ 31,803 $ 26,870 Amortization of debt issuance costs 349 343 605 563 Funds withheld balances and other 56 — 72 — Total interest expense $ 16,301 $ 14,018 $ 32,480 $ 27,433 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Carrying Amount of Equity Attributable to Noncontrolling Interest | The following is a reconciliation of the beginning and ending carrying amount of the equity attributable to the RNCI: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Balance at beginning of period $ 174,803 $ 392,773 $ 365,436 $ 438,791 Distributions paid — — (202,073) — Net earnings (losses) attributable to RNCI 2,441 (20,140) 14,186 (52,099) Change in unrealized losses on AFS investments attributable to RNCI 40 10,543 (211) 6,373 Change in currency translation adjustments attributable to RNCI 165 (165) 841 (165) Change in redemption value of RNCI — (16,478) (730) (26,628) Cumulative effect of change in accounting principle attributable to RNCI (1) — — — 261 Balance at end of period $ 177,449 $ 366,533 $ 177,449 $ 366,533 (1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. |
Shareholders Equity (Tables)
Shareholders Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables present a roll forward of accumulated other comprehensive income (loss): Unrealized gains (losses) arising during the year Cumulative Currency Translation Adjustment Defined Benefit Pension Liability Total Balance, March 31, 2021, net of tax $ (26,541) $ 8,619 $ 207 $ (17,715) Unrealized gains on fixed income available-for-sale investments arising during the year 57,020 — — 57,020 Reclassification adjustment for change in allowance for credit losses recognized in net earnings (5,094) — — (5,094) Reclassification adjustment for net realized gains included in net earnings (529) — — (529) Change in currency translation adjustment — (399) — (399) Total other comprehensive income (loss) 51,397 (399) — 50,998 Other comprehensive (income) loss attributable to RNCI (40) (166) — (206) Balance, June 30, 2021, net of tax $ 24,816 $ 8,054 $ 207 $ 33,077 Unrealized gains (losses) arising during the year Cumulative Currency Translation Adjustment Defined Benefit Pension Liability Total Balance, March 31, 2020, net of tax $ (41,573) $ 7,862 $ (945) $ (34,656) Unrealized gains on fixed income available-for-sale investments arising during the year 112,506 — — 112,506 Reclassification adjustment for change in allowance for credit losses recognized in net earnings (10,762) — — (10,762) Reclassification adjustment for net realized gains included in net earnings (4,222) — — (4,222) Change in currency translation adjustment — (1,205) — (1,205) Total other comprehensive income (loss) 97,522 (1,205) — 96,317 Other comprehensive (income) loss attributable to RNCI (10,543) 167 — (10,376) Balance, June 30, 2020, net of tax $ 45,406 $ 6,824 $ (945) $ 51,285 Unrealized gains (losses) arising during the year Cumulative Currency Translation Adjustment Defined Benefit Pension Liability Total Balance, December 31, 2020, net of tax $ 72,576 $ 7,876 $ 207 $ 80,659 Unrealized losses on fixed income available-for-sale investments arising during the year (54,254) — — (54,254) Reclassification adjustment for change in allowance for credit losses recognized in net earnings 6,931 — — 6,931 Reclassification adjustment for net realized gains included in net earnings (1,123) — — (1,123) Reclassification to earnings on disposal of subsidiary 475 — — 475 Change in currency translation adjustment — 1,019 — 1,019 Total other comprehensive income (loss) (47,971) 1,019 — (46,952) Other comprehensive (income) loss attributable to RNCI 211 (841) — (630) Balance, June 30, 2021, net of tax $ 24,816 $ 8,054 $ 207 $ 33,077 Unrealized gains (losses) arising during the year Cumulative Currency Translation Adjustment Defined Benefit Pension Liability Total Balance, December 31, 2019, net of tax $ (432) $ 8,548 $ (945) $ 7,171 Unrealized gains on fixed income available-for-sale investments arising during the year 53,771 — — 53,771 Reclassification adjustment for change in allowance for credit losses recognized in net earnings 2,450 — — 2,450 Reclassification adjustment for net realized gains included in net earnings (4,010) — — (4,010) Change in currency translation adjustment — (1,891) — (1,891) Total other comprehensive income (loss) 52,211 (1,891) — 50,320 Other comprehensive (income) loss attributable to RNCI (6,373) 167 — (6,206) Balance, June 30, 2020, net of tax $ 45,406 $ 6,824 $ (945) $ 51,285 The following table presents details about the tax effects allocated to each component of other comprehensive income (loss): Three Months Ended June 30, 2021 2020 Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Unrealized gains (losses) on fixed income available-for-sale investments arising during the year $ 59,178 $ (2,158) $ 57,020 $ 112,506 $ — $ 112,506 Reclassification adjustment for change in allowance for credit losses recognized in net earnings (5,090) (4) (5,094) (10,762) — (10,762) Reclassification adjustment for net realized (gains) losses included in net earnings (630) 101 (529) (4,222) — (4,222) Change in currency translation adjustment (399) — (399) (1,205) — (1,205) Other comprehensive income (loss) $ 53,059 $ (2,061) $ 50,998 $ 96,317 $ — $ 96,317 Six Months Ended June 30, 2021 2020 Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Unrealized gains (losses) on fixed income available-for-sale investments arising during the year $ (57,089) $ 2,835 $ (54,254) $ 53,771 $ — $ 53,771 Reclassification adjustment for change in allowance for credit losses recognized in net earnings 7,137 (206) 6,931 2,450 — 2,450 Reclassification adjustment for net realized (gains) losses included in net earnings (1,499) 376 (1,123) (4,010) — (4,010) Reclassification to earnings on disposal of subsidiary 586 (111) 475 — — — Change in currency translation adjustment 1,019 — 1,019 (1,891) — (1,891) Other comprehensive income (loss) $ (49,846) $ 2,894 $ (46,952) $ 50,320 $ — $ 50,320 The following table presents details of amounts reclassified from accumulated other comprehensive income: Three Months Ended Details about AOCI components June 30, 2021 June 30, 2020 Affected Line Item in Statement where Net Earnings are presented Unrealized gains on fixed income available-for-sale investments 5,720 13,012 Net realized and unrealized gains — 1,972 Net loss from discontinued operations 5,720 14,984 Total before tax (97) — Income tax benefit Total reclassifications for the period, net of tax 5,623 14,984 Six Months Ended Details about AOCI components June 30, 2021 June 30, 2020 Affected Line Item in Statement where Net Earnings are presented Unrealized gains (losses) on fixed income available-for-sale investments (6,224) 894 Net realized and unrealized gains — 666 Net loss from discontinued operations (6,224) 1,560 Total before tax (59) — Income tax benefit Total reclassifications for the period, net of tax (6,283) 1,560 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Comparison of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted net earnings per ordinary share: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Numerator: Earnings per share attributable to Enstar ordinary shareholders: Net earnings from continuing operations (1) $ 377,326 $ 799,232 $ 560,523 $ 283,632 Net loss from discontinued operations (2) — (679) — (1,900) Net earnings attributable to Enstar ordinary shareholders: $ 377,326 $ 798,553 $ 560,523 $ 281,732 Denominator: Weighted-average ordinary shares outstanding — basic (3) 21,631,749 21,565,240 21,597,236 21,557,542 Effect of dilutive securities: Share-based compensation plans (4) 200,469 185,300 214,849 177,264 Warrants (5) — 38,702 80,659 53,525 Weighted-average ordinary shares outstanding — diluted 21,832,218 21,789,242 21,892,744 21,788,331 Earnings per share attributable to Enstar ordinary shareholders: Basic: Net earnings from continuing operations $ 17.44 $ 37.06 $ 25.95 $ 13.16 Net loss from discontinued operations — (0.03) — (0.09) Net earnings per ordinary share $ 17.44 $ 37.03 $ 25.95 $ 13.07 Diluted: Net earnings from continuing operations $ 17.28 $ 36.68 $ 25.60 $ 13.02 Net loss from discontinued operations — (0.03) — (0.09) Net earnings per ordinary share $ 17.28 $ 36.65 $ 25.60 $ 12.93 (1) Net earnings from continuing operations attributable to Enstar ordinary shareholders equals net earnings from continuing operations, plus net loss (earnings) from continuing operations attributable to noncontrolling interest, less dividends on preferred shares. (2) Net loss from discontinued operations attributable to Enstar ordinary shareholders equals net loss from discontinued operations, net of income tax benefit (expense), plus net loss from discontinued operations attributable to noncontrolling interest; refer to Note 3 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations" for a breakdown by period. (3) Weighted-average ordinary shares for basic earnings per share includes ordinary shares (voting and non-voting) but excludes ordinary shares held in the Enstar Group Limited Employee Benefit Trust (the "EB Trust") in respect of Joint Share Ownership Plan ("JSOP") awards. (4) Share-based dilutive securities include restricted shares, restricted share units, and performance share units. Certain share-based compensation awards, including the ordinary shares held in the EB Trust in respect of JSOP awards, were excluded from the calculation for the three and six months ended June 30, 2021 and 2020 because they were anti-dilutive. (5) Warrants to acquire 175,901 Series C Non-Voting Ordinary Shares for an exercise price of $115.00 per share were exercised on a non-cash basis during the six months ended June 30, 2021, which resulted in a total of 89,590 Series C Non-Voting Ordinary Shares being issued in the period. As of June 30, 2021, there were no warrants outstanding following the exercise described. The warrants presented in the table above are a weighted-average of the warrants outstanding for the period. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Compensation Cost for Share-based Compensation Plans | The table below provides a summary of the compensation costs for all of our share-based compensation plans: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Share-based compensation plans: Restricted shares and restricted share units $ 1,714 $ 2,330 $ 3,009 $ 3,929 Performance share units 2,995 5,855 6,890 5,188 Cash-settled stock appreciation rights 245 (316) 3,013 (3,475) Joint share ownership plan expense 1,133 1,133 2,254 2,005 Other share-based compensation plans: Northshore incentive plan — (25) — 447 StarStone incentive plan — — — (223) Deferred compensation and ordinary share plan for non-employee directors 108 93 979 959 Employee share purchase plan 81 104 166 208 Total share-based compensation $ 6,276 $ 9,174 $ 16,311 $ 9,038 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table presents the amounts included in our condensed consolidated balance sheet related to our related party transactions with Stone Point and its affiliated entities: June 30, 2021 December 31, 2020 Short-term investments, AFS, at fair value $ — $ 878 Fixed maturities, trading, at fair value 142,736 196,086 Fixed maturities, AFS, at fair value 291,924 227,397 Equities, at fair value 134,178 103,914 Other investments, at fair value: Hedge funds — 19,844 Fixed income funds 230,341 210,017 Private equity funds 52,811 37,262 CLO equities 36,032 38,658 CLO equity funds 189,793 166,523 Private Debt 18,950 27,016 Real estate fund 29,855 27,278 Total investments 1,126,620 1,054,873 Cash and cash equivalents 13,635 23,933 Other assets 1,971 403 Other liabilities 1,515 745 Net investment $ 1,140,711 $ 1,078,464 As of June 30, 2021, we had unfunded commitments of $203.2 million to other investments, $38.0 million to privately held equity and $21.0 million to fixed maturity investments managed by Stone Point and its affiliated entities. The following table presents the amounts included in net earnings related to our related party transactions with Stone Point and its affiliated entities: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net investment income $ 4,416 $ 4,793 $ 4,878 $ 8,877 Net realized and unrealized gains (losses) 22,318 29,729 47,232 (72,787) Total net earnings (losses) $ 26,734 $ 34,522 $ 52,110 $ (63,910) June 30, 2021 December 31, 2020 Investments in funds managed by AnglePoint Cayman, held by Enhanzed Re $ 12,954 $ 851,435 Our ownership percentage of Enhanzed Re 47.4 % 47.4 % Our share of Enhanzed Re's investment in funds managed by AnglePoint Cayman held by Enhanzed Re (through our equity method investment ownership) $ 6,140 $ 403,580 Investment in other funds managed by Hillhouse Group and its affiliates: InRe Fund (1) $ 2,365,158 Other funds $ — 369,508 $ — $ 2,734,666 (1) Effective April 1, 2021, AnglePoint HK assumed the role of manager of the InRe Fund as described above, refer to AnglePoint HK disclosures below. The following table presents the amounts included in net earnings related to our related party transactions with Hillhouse Group and its affiliates: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 InRe Fund (1) (2) $ — $ 365,054 $ 76,607 $ 320,196 Other Funds — 55,230 20,871 35,184 Net realized and unrealized gains $ — $ 420,284 $ 97,478 $ 355,380 (1) Effective April 1, 2021, AnglePoint HK assumed the role of manager of the InRe Fund as described above, refer to AnglePoint HK disclosures below. (2) The six months ended June 30, 2021, includes the impact of a deduction of $100.0 million from amounts due to affiliates of Hillhouse Group from the InRe Fund, which had the effect of increasing our NAV in the InRe Fund on February 21, 2021. The following table presents the amounts included in net earnings related to our related party transactions with AnglePoint HK (as applicable): Three and Six Months Ended June 30, 2021 Net investment expenses (1) $ (20,171) Net realized and unrealized gains 216,730 $ 196,559 (1) The InRe Fund net investment expenses primarily include management and performance fee accruals which were previously included in the change in NAV and included within net realized and unrealized gains prior to consolidation of the fund. Our condensed consolidated balance sheet included the following balances between us and Arden: June 30, 2021 Balances under LPT Retrocession Agreement: Premiums Receivable $ 13,185 Loss and loss adjustment expenses 12,921 Our condensed consolidated statement of earnings included the following amounts between us and Arden: Three Months Ended Six Months Ended June 30, June 30, 2021 2021 Transactions under LPT Retrocession Agreement: Net incurred losses and LAE $ 28 $ 346 Interest expense (83) (83) Total net earnings (loss) $ (55) $ 263 Our condensed consolidated balance sheet includes the following balances related to our participation in Atrium's Syndicate 609 through our wholly-owned subsidiary SGL 1. The balances are disclosed on a gross basis and therefore include the reinsurance balances recoverable from Arden under a quota share reinsurance agreement as well as the net results arising from our participation which is payable by SGL 1 to Atrium under a capacity lease tenancy agreement as described further below: June 30, 2021 Balances under quota share agreement Short-term investments, trading, at fair value $ — Fixed maturities, trading, at fair value 165,717 Fixed maturities, available-for-sale, at fair value 1,102 Other investments, at fair value 12,153 Cash and cash equivalents 24,654 Restricted cash and cash equivalents 4,626 Premiums receivable 18,408 Reinsurance balances recoverable on paid and unpaid losses 76,670 Funds held by reinsured companies 31,555 Other assets 41,657 Losses and loss adjustment expenses 240,910 Insurance and reinsurance balances payable 87,240 Other liabilities 48,286 Balances under lease capacity agreement Other liabilities 12,782 Our condensed consolidated statement of earnings included the following amounts related to our participation in Atrium's Syndicate 609 through our wholly-owned subsidiary SGL 1. These amounts reflect the impact of cessions by SGL 1 to Arden under a quota share reinsurance agreement with the net results arising from our participation being payable by SGL 1 to Atrium under a capacity lease tenancy agreement as described further below: Three Months Ended Six Months Ended June 30, June 30, 2021 2021 Transactions under quota share agreement Net premiums earned $ 17,240 $ 37,280 Net investment income 288 1,046 Net realized and unrealized gains (losses) 210 (1,099) Other income 1,282 1,282 Net incurred losses and loss adjustment expenses (10,281) (14,759) Acquisition costs (4,922) (9,899) General and administrative expenses (1,418) (3,502) Transactions under lease capacity agreement Other expense $ (3,831) $ (10,349) Total net earnings $ (1,432) $ — Our consolidated statement of earnings included the following amounts between us and Clear Spring: Three Months Ended Six Months Ended June 30, June 30, 2020 2020 Transactions under StarStone ceding quota share, included in net loss from discontinued operations: Ceded premium earned $ 682 $ 1 Net incurred losses and LAE (2,043) (1,289) Acquisition costs (99) (27) Transactions under assuming quota share: Premium earned (170) — Net incurred losses and LAE 510 882 Acquisition costs 20 7 Total net earnings $ (1,100) $ (426) Our indirect investment in the shares of AmTrust, carried in equities on our condensed consolidated balance sheet, as of June 30, 2021 and December 31, 2020 was $227.4 million and $230.3 million, respectively. The following table presents the amounts included in net earnings related to our related party transactions with AmTrust (excluding withholding taxes): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net investment income $ 1,493 $ 1,896 $ 2,986 $ 4,367 Net realized and unrealized gains (losses) (1,453) 3,954 (2,945) 3,809 Total net earnings $ 40 $ 5,850 $ 41 $ 8,176 Our condensed consolidated balance sheet included the following balances between us and Enhanzed Re: June 30, 2021 December 31, 2020 Balances under ceding quota share: Reinsurance balances recoverable $ 226,003 $ 208,379 Funds held 242,483 193,981 Insurance balances payables 1,560 1,276 Other assets 7,767 730 Our condensed consolidated statement of earnings included the following amounts between us and Enhanzed Re: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Amounts under ceding quota share: Ceded premium earned $ (1,510) $ — $ (1,641) $ — Fees and commission income 117 — 233 — Net investment expense (1,280) — (2,437) — Net realized and unrealized gains 149 — 132 — Other income (expense) 735 (3,172) 1,462 (2,881) Net incurred losses and LAE 1,319 (13) 1,054 (13) Acquisition costs 368 — 373 23 Total net loss $ (102) $ (3,185) $ (824) $ (2,871) Change in unrealized losses on AFS investments (665) — (1,288) — June 30, 2021 December 31, 2020 Balances under assuming quota share, LPT and ADC reinsurances: Funds held by reinsured companies $ 50,426 $ 58,086 Other assets 2,764 38,846 Losses and loss adjustment expenses 597,390 682,637 Insurance and reinsurance balances payable 60,840 24,806 Other liabilities 175 5,003 Balances under ceding reinsurances: Reinsurance balances recoverable on paid and unpaid losses 1,691 1,736 Balances under service agreements: Other assets 5,231 6,727 Other liabilities 53 328 Balances under sale and recapitalization agreement: Other liabilities — 4,512 Our consolidated statement of earnings included the following amounts between us and Core Specialty: Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 Transactions under assuming quota share, LPT and ADC reinsurances: Net premiums earned $ (1,310) $ 2,935 Net incurred losses and loss adjustment expenses 1,369 9,221 Acquisition costs 1,893 3,217 Net investment income — 121 Other expense (15) (15) Transactions under service agreements: Fees and commission income 3,801 7,499 Transactions under sale and recapitalization agreement: Other Income — 567 Interest expense — (15) Total net earnings $ 5,738 $ 23,530 |
Summary of Distribution of Syndicate Results | December 31, 2020 Distribution of SGL No.1 share of Syndicate 609 results $ 19,115 Due to Arden under reinsurance agreement (7,965) Due to Atrium 5 Limited under Capacity Lease Agreement (11,150) Net balances with Northshore Group — December 31, 2020 Distributions of SGL No.1 Share of Syndicate 609 results 19,115 Due to Arden under reinsurance agreement (7,965) Due to Atrium 5 limited under capacity lease agreement (11,150) Net balances with Northshore Group — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease, Cost and Other Lease Information | The table below provides the lease cost and other information relating to our operating leases: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Lease cost: Operating lease cost $ 2,022 $ 3,202 $ 4,134 $ 6,524 Short-term lease cost (1) — 61 4 119 Total lease cost 2,022 3,263 4,138 6,643 Sub-lease income (2) (473) (138) (1,027) (276) Total net lease cost $ 1,549 $ 3,125 $ 3,111 $ 6,367 Other information: Operating cash paid for amounts included in the measurement of lease liabilities $ 1,937 $ 4,145 $ 4,047 $ 7,328 Non-cash activity: right-of-use assets relating to leases (139) 191 (504) 263 Weighted-average remaining lease term 6.4 years 6.2 years Weighted-average discount rate 6.8 % 6.3 % (1) Leases with an initial lease term of twelve months or less are not recognized within our condensed consolidated balance sheets. (2) Sub-lease income consists of rental income received from third parties to whom we have sub-leased some of our leased office spaces and is included within other income in our consolidated statements of earnings. |
Assets and Liabilities, Lessee | The table below provides a summary of the operating leases recorded on our condensed consolidated balance sheets: Balance sheet classification June 30, 2021 December 31, 2020 Right-of-use assets (1) Other assets $ 22,219 $ 32,297 Current lease liabilities (1) Other liabilities 6,047 7,959 Non-current lease liabilities (1) Other liabilities 19,122 27,064 (1) The December 31, 2020 right-of-use assets and the total lease liability balances exclude balances of $1.0 million related to Atrium which were reclassified to held-for-sale balances on our condensed consolidated balance sheet as of December 31, 2020. |
Lessee, Operating Lease, Liability, Maturity | The table below provides a summary of the contractual maturities of our operating lease liabilities: 2021 2022 2023 2024 2025 2026 and beyond Total lease payments Less: Imputed interest Present value of lease liabilities Contractual maturities $ 4,230 6,580 5,703 4,047 3,165 8,651 32,376 (7,207) $ 25,169 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Operations by Segment | The following tables set forth selected and unaudited condensed consolidated statement of earnings results by segment and for our corporate and other activities: Three Months Ended June 30, 2021 Run-off Investments Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 42,404 $ — $ 17,240 $ — $ 59,644 Fees and commission income 8,274 — — — 8,274 Net investment income — 75,859 288 — 76,147 Net realized and unrealized gains — 405,010 210 — 405,220 Other income (expense) 5,196 — (2,549) (6,006) (3,359) 55,874 480,869 15,189 (6,006) 545,926 EXPENSES Net incurred losses and loss adjustment expenses (16,997) — 10,281 46,020 39,304 Acquisition costs 34 — 4,922 — 4,956 General and administrative expenses (2) 64,138 12,303 1,418 14,858 92,717 47,175 12,303 16,621 60,878 136,977 EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES 8,699 468,566 (1,432) (66,884) 408,949 Loss from equity method investments — (3,059) — — (3,059) SEGMENT INCOME (LOSS) 8,699 465,507 (1,432) (66,884) 405,890 Interest expense (16,301) (16,301) Net foreign exchange gains 9,139 9,139 Income tax expense (9,422) (9,422) NET EARNINGS 389,306 Net earnings attributable to noncontrolling interest (3,055) (3,055) NET EARNINGS ATTRIBUTABLE TO ENSTAR 386,251 Dividends on preferred shares (8,925) (8,925) NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS $ (95,448) $ 377,326 (1) Other income (expense) for corporate and other activities includes the amortization of fair value adjustments associated with the acquisition of DCo and Morse TEC. Net incurred losses and loss adjustment expenses for corporate and other activities includes the amortization of deferred charge assets and deferred gain liabilities on retroactive reinsurance contracts and fair value adjustments associated with the acquisition of companies and the changes in the fair value of liabilities related to our assumed retroactive reinsurance agreements for which we have elected the fair value option. (2) Includes refinement of first quarter 2021 general and administrative expense allocations which increased/(decreased) general and administrative expenses of the Run-off and Investments segments by $16.3 million and $2.6 million, respectively, as well as corporate and other activities by $(18.9) million. Three Months Ended June 30, 2020 Run-off Investments Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 10,517 $ — $ 132,354 $ — $ 142,871 Fees and commission income 3,966 — 6,044 — 10,010 Net investment income — 86,263 8,180 — 94,443 Net realized and unrealized gains — 926,494 41,114 — 967,608 Other income (expense) 899 — 30 (2,016) (1,087) 15,382 1,012,757 187,722 (2,016) 1,213,845 EXPENSES Net incurred losses and loss adjustment expenses (60,249) — 95,382 151,559 186,692 Acquisition costs 3,589 — 45,478 — 49,067 General and administrative expenses (2) 52,466 10,704 70,062 11,598 144,830 (4,194) 10,704 210,922 163,157 380,589 EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES 19,576 1,002,053 (23,200) (165,173) 833,256 Loss from equity method investments — (8,790) — — (8,790) SEGMENT INCOME (LOSS) 19,576 993,263 (23,200) (165,173) 824,466 Interest expense (14,018) (14,018) Net foreign exchange losses (5,158) (5,158) Income tax expense (16,652) (16,652) NET EARNINGS FROM CONTINUING OPERATIONS 788,638 Net loss from discontinued operations, net of income taxes (1,152) (1,152) NET EARNINGS 787,486 Net loss attributable to noncontrolling interest 19,992 19,992 NET EARNINGS ATTRIBUTABLE TO ENSTAR 807,478 Dividends on preferred shares (8,925) (8,925) NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS $ (191,086) $ 798,553 (1) Other income (expense) for corporate and other activities includes the amortization of fair value adjustments associated with the acquisition of DCo and Morse TEC. Net incurred losses and loss adjustment expenses for corporate and other activities includes the amortization of deferred charge assets and deferred gain liabilities on retroactive reinsurance contracts and fair value adjustments associated with the acquisition of companies and the changes in the fair value of liabilities related to our assumed retroactive reinsurance agreements for which we have elected the fair value option. (2) Includes refinement of first quarter 2020 general and administrative expense allocations which increased/(decreased) general and administrative expenses of the Run-off and Investments segments by $13.6 million and $2.5 million, respectively, as well as corporate and other activities by $(16.1) million. Six Months Ended June 30, 2021 Run-off Investments Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 115,240 $ — $ 37,280 $ — $ 152,520 Fees and commission income 17,872 — — — 17,872 Net investment income — 137,190 1,046 — 138,236 Net realized and unrealized gains (losses) — 385,531 (1,099) — 384,432 Other income (expense) 17,511 — (9,067) (11,252) (2,808) Net gain on sales of subsidiaries — — — 14,894 14,894 150,623 522,721 28,160 3,642 705,146 EXPENSES Net incurred losses and loss adjustment expenses (12,372) — 14,759 (18,590) (16,203) Acquisition costs 29,071 — 9,899 — 38,970 General and administrative expenses 91,729 15,843 3,502 64,643 175,717 108,428 15,843 28,160 46,053 198,484 EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES 42,195 506,878 — (42,411) 506,662 Earnings from equity method investments — 114,972 — — 114,972 SEGMENT INCOME (LOSS) 42,195 621,850 — (42,411) 621,634 Interest expense (32,480) (32,480) Net foreign exchange gains 6,505 6,505 Income tax expense (3,440) (3,440) NET EARNINGS 592,219 Net earnings attributable to noncontrolling interest (13,846) (13,846) NET EARNINGS ATTRIBUTABLE TO ENSTAR 578,373 Dividends on preferred shares (17,850) (17,850) NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS $ (103,522) $ 560,523 (1) Other income (expense) for corporate and other activities includes the amortization of fair value adjustments associated with the acquisition of DCo and Morse TEC. Net incurred losses and loss adjustment expenses for corporate and other activities includes the amortization of deferred charge assets and deferred gain liabilities on retroactive reinsurance contracts and fair value adjustments associated with the acquisition of companies and the changes in the fair value of liabilities related to our assumed retroactive reinsurance agreements for which we have elected the fair value option. Six Months Ended June 30, 2020 Run-off Investments Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 26,547 $ — $ 275,675 $ — $ 302,222 Fees and commission income 8,951 — 8,587 — 17,538 Net investment income — 151,226 17,931 — 169,157 Net realized and unrealized gains (losses) — 351,812 (13,265) — 338,547 Other income (expense) 28,662 — 150 (9,455) 19,357 64,160 503,038 289,078 (9,455) 846,821 EXPENSES Net incurred losses and loss adjustment expenses (87,442) — 200,913 116,521 229,992 Acquisition costs 10,496 — 84,614 — 95,110 General and administrative expenses 75,853 14,268 96,120 57,017 243,258 (1,093) 14,268 381,647 173,538 568,360 EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES 65,253 488,770 (92,569) (182,993) 278,461 Earnings from equity method investments — 3,660 — — 3,660 SEGMENT INCOME (LOSS) 65,253 492,430 (92,569) (182,993) 282,121 Interest expense (27,433) (27,433) Net foreign exchange gains 6,781 6,781 Income tax expense (11,380) (11,380) NET EARNINGS FROM CONTINUING OPERATIONS 250,089 Net loss from discontinued operations, net of income taxes (3,221) (3,221) NET EARNINGS 246,868 Net loss attributable to noncontrolling interest 52,714 52,714 NET EARNINGS ATTRIBUTABLE TO ENSTAR 299,582 Dividends on preferred shares (17,850) (17,850) NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS $ (183,382) $ 281,732 (1) Other income (expense) for corporate and other activities includes the amortization of fair value adjustments associated with the acquisition of DCo and Morse TEC. Net incurred losses and loss adjustment expenses for corporate and other activities includes the amortization of deferred charge assets and deferred gain liabilities on retroactive reinsurance contracts and fair value adjustments associated with the acquisition of companies and the changes in the fair value of liabilities related to our assumed retroactive reinsurance agreements for which we have elected the fair value option. |
Subsequent Events (Tables)
Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Schedule of Significant New Business | The table below sets forth a summary of significant new business that we have completed between January 1, 2020 and June 30, 2021: Transaction Date Completed Total Assets Assumed Deferred Charge Asset (1) Total Assets from Transactions Total Liabilities Assumed Net Fair Value Adjustment (2) Total Liabilities from Transactions Type of Transaction and Primary Nature of Business Hiscox June 3, 2021 $ 532,394 N/A $ 532,394 $ 532,394 N/A $ 532,394 LPT of diversified legacy insurance business, including surplus lines broker business Coca-Cola May 24, 2021 41,928 6,143 48,071 48,071 N/A 48,071 LPT of U.S. workers' compensation liability AXA Group May 3, 2021 1,395,000 91,988 1,486,988 1,486,988 N/A 1,486,988 ADC of a diversified mix of global casualty and professional lines CNA February 5, 2021 651,736 105,479 757,215 757,215 N/A 757,215 LPT of U.S. excess workers' compensation liabilities Liberty Mutual (3) January 8, 2021 363,159 25,402 388,561 388,561 N/A 388,561 LPT of U.S. energy liability, construction liability and homebuilders liability Total 2021 $ 2,984,217 $ 229,012 $ 3,213,229 $ 3,213,229 $ — $ 3,213,229 Hannover Re August 6, 2020 $ 182,498 N/A $ 182,498 $ 209,713 $ (27,215) $ 182,498 Novation of U.S. asbestos, environmental and workers' compensation liabilities Munich Re July 1, 2020 100,956 N/A 100,956 100,956 N/A 100,956 Business Transfer of Australian public liability, professional liability and builders' warranty liabilities AXA Group (3) June 1, 2020 179,681 N/A 179,681 179,681 N/A 179,681 LPT of U.S. construction general liability Aspen June 1, 2020 770,000 11,746 781,746 781,746 N/A 781,746 ADC on a diversified mix of property, liability and specialty lines of business across the U.S., U.K. and Europe Lyft March 31, 2020 465,000 N/A 465,000 465,000 N/A 465,000 LPT of U.S. motor liabilities Total 2020 $ 1,698,135 $ 11,746 $ 1,709,881 $ 1,737,096 $ (27,215) $ 1,709,881 Total $ 4,682,352 $ 240,758 $ 4,923,110 $ 4,950,325 $ (27,215) $ 4,923,110 (1) Where the estimated ultimate losses payable exceed the premium consideration received at the inception of the agreement, a deferred charge asset is recorded. (2) When the fair value option is elected for any retroactive reinsurance agreement, an initial net fair value adjustment is recorded at the inception of the agreement. (3) We have ceded 10% of these transactions to Enhanzed Reinsurance Ltd. ("Enhanzed Re"), in which we have an investment, on the same terms and conditions as those received by us. Refer to Note 20 - "Related Party Transactions" for further details. The table below sets forth a summary of significant new business that was announced or completed subsequent to June 30, 2021: Transaction Date Transaction Announced or Completed Initial Estimate of Liabilities Assumed Type of Transaction and Primary Nature of Business ProSight Completed on August 4, 2021 $ 500,000 LPT of U.S. discontinued workers' compensation and excess workers' compensation lines of business and ADC on a diversified mix of general liability classes of business RSA Announced on July 27, 2021 97,222 ADC on a diversified mix of commercial and personal insurance lines across the U.K. and Ireland Total $ 597,222 |
Significant New Business (Detai
Significant New Business (Details) - USD ($) $ in Thousands | Jan. 08, 2021 | Jun. 01, 2020 | Jun. 30, 2021 | Jun. 03, 2021 | May 24, 2021 | May 03, 2021 | Feb. 05, 2021 | Aug. 06, 2020 | Jul. 01, 2020 | Mar. 31, 2020 |
Asset Acquisition [Line Items] | ||||||||||
Total Assets Assumed | $ 4,682,352 | |||||||||
Deferred Charge Asset | 240,758 | |||||||||
Total Assets from Transactions | 4,923,110 | |||||||||
Total Liabilities Assumed | 4,950,325 | |||||||||
Net Fair Value Adjustment | (27,215) | |||||||||
Total Liabilities from Transactions | 4,923,110 | |||||||||
Total 2021 | ||||||||||
Asset Acquisition [Line Items] | ||||||||||
Total Assets Assumed | 2,984,217 | |||||||||
Deferred Charge Asset | 229,012 | |||||||||
Total Assets from Transactions | 3,213,229 | |||||||||
Total Liabilities Assumed | 3,213,229 | |||||||||
Net Fair Value Adjustment | 0 | |||||||||
Total Liabilities from Transactions | 3,213,229 | |||||||||
Hiscox | ||||||||||
Asset Acquisition [Line Items] | ||||||||||
Total Assets Assumed | $ 532,394 | |||||||||
Total Assets from Transactions | 532,394 | |||||||||
Total Liabilities Assumed | 532,394 | |||||||||
Total Liabilities from Transactions | $ 532,394 | |||||||||
Coca-Cola | ||||||||||
Asset Acquisition [Line Items] | ||||||||||
Total Assets Assumed | $ 41,928 | |||||||||
Deferred Charge Asset | 6,143 | |||||||||
Total Assets from Transactions | 48,071 | |||||||||
Total Liabilities Assumed | 48,071 | |||||||||
Total Liabilities from Transactions | $ 48,071 | |||||||||
AXA Group | ||||||||||
Asset Acquisition [Line Items] | ||||||||||
Total Assets Assumed | $ 179,681 | $ 1,395,000 | ||||||||
Deferred Charge Asset | 91,988 | |||||||||
Total Assets from Transactions | 179,681 | 1,486,988 | ||||||||
Total Liabilities Assumed | 179,681 | 1,486,988 | ||||||||
Total Liabilities from Transactions | $ 179,681 | $ 1,486,988 | ||||||||
Percentage ceded | 10.00% | |||||||||
CNA | ||||||||||
Asset Acquisition [Line Items] | ||||||||||
Total Assets Assumed | $ 651,736 | |||||||||
Deferred Charge Asset | 105,479 | |||||||||
Total Assets from Transactions | 757,215 | |||||||||
Total Liabilities Assumed | 757,215 | |||||||||
Total Liabilities from Transactions | $ 757,215 | |||||||||
Liberty Mutual | ||||||||||
Asset Acquisition [Line Items] | ||||||||||
Total Assets Assumed | $ 363,159 | |||||||||
Deferred Charge Asset | 25,402 | |||||||||
Total Assets from Transactions | 388,561 | |||||||||
Total Liabilities Assumed | 388,561 | |||||||||
Total Liabilities from Transactions | $ 388,561 | |||||||||
Percentage ceded | 10.00% | |||||||||
Total 2020 | ||||||||||
Asset Acquisition [Line Items] | ||||||||||
Total Assets Assumed | 1,698,135 | |||||||||
Deferred Charge Asset | 11,746 | |||||||||
Total Assets from Transactions | 1,709,881 | |||||||||
Total Liabilities Assumed | 1,737,096 | |||||||||
Net Fair Value Adjustment | (27,215) | |||||||||
Total Liabilities from Transactions | $ 1,709,881 | |||||||||
Hannover Re | ||||||||||
Asset Acquisition [Line Items] | ||||||||||
Total Assets Assumed | $ 182,498 | |||||||||
Total Assets from Transactions | 182,498 | |||||||||
Total Liabilities Assumed | 209,713 | |||||||||
Net Fair Value Adjustment | (27,215) | |||||||||
Total Liabilities from Transactions | $ 182,498 | |||||||||
Munich Re | ||||||||||
Asset Acquisition [Line Items] | ||||||||||
Total Assets Assumed | $ 100,956 | |||||||||
Total Assets from Transactions | 100,956 | |||||||||
Total Liabilities Assumed | 100,956 | |||||||||
Total Liabilities from Transactions | $ 100,956 | |||||||||
Aspen | ||||||||||
Asset Acquisition [Line Items] | ||||||||||
Total Assets Assumed | $ 770,000 | |||||||||
Deferred Charge Asset | 11,746 | |||||||||
Total Assets from Transactions | 781,746 | |||||||||
Total Liabilities Assumed | 781,746 | |||||||||
Total Liabilities from Transactions | $ 781,746 | |||||||||
Lyft | ||||||||||
Asset Acquisition [Line Items] | ||||||||||
Total Assets Assumed | $ 465,000 | |||||||||
Total Assets from Transactions | 465,000 | |||||||||
Total Liabilities Assumed | 465,000 | |||||||||
Total Liabilities from Transactions | $ 465,000 |
Divestitures, Held-For-Sale B_3
Divestitures, Held-For-Sale Businesses and Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands | Mar. 15, 2021 | Feb. 11, 2021 | Nov. 30, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Jan. 01, 2021 | Mar. 31, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Gain (loss) on sale of subsidiaries | $ 0 | $ 0 | $ 14,894 | $ 0 | ||||||||
Gross loss reserves | 13,037,858 | $ 11,427,420 | 10,593,436 | 13,037,858 | 10,593,436 | $ 10,847,843 | $ 254,600 | $ 9,836,797 | $ 9,868,404 | |||
Reinsurance recoverable | 2,117,215 | 2,117,215 | 2,226,285 | 90,800 | ||||||||
Net loss reserves | 10,835,041 | 9,216,351 | 8,488,675 | 10,835,041 | 8,488,675 | 8,708,709 | 163,800 | 7,688,794 | 7,680,550 | |||
Unearned premiums | 37,400 | |||||||||||
Deferred acquisition cost | 435,151 | 360,785 | 258,516 | 435,151 | 258,516 | 238,602 | $ 20,300 | 257,832 | 272,462 | |||
Assumed business | 1,965,559 | 954,323 | 2,880,011 | 1,425,473 | ||||||||
Continuing cash flows after disposal | 7,600 | (9,800) | 7,600 | (9,800) | ||||||||
Earnings (loss) from equity method investments | (3,059) | (8,790) | 114,972 | 3,660 | ||||||||
Inigo | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Privately held equity investment | 34,600 | 34,600 | $ 16,900 | |||||||||
Funded commitment | $ 27,000 | |||||||||||
Payments to acquire investments | 16,900 | |||||||||||
Unfunded commitments | 10,100 | 10,100 | ||||||||||
Run-off | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Syndicate underwriting capacity percentage | 25.00% | |||||||||||
Gross loss reserves | 13,055,661 | 11,467,367 | 9,231,912 | 13,055,661 | 9,231,912 | $ 9,432,525 | 8,652,532 | 8,683,983 | ||||
Net loss reserves | 11,296,434 | 9,631,571 | 7,737,260 | 11,296,434 | 7,737,260 | $ 7,969,524 | $ 7,084,236 | $ 7,039,334 | ||||
Assumed business | $ 2,063,690 | $ 966,069 | $ 3,109,023 | $ 1,437,219 | ||||||||
StarStone US | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Assumed business | $ 462,400 | |||||||||||
Reinsurance premium consideration | 478,200 | |||||||||||
Reinsurance premium, additional consideration to be received | $ 130,000 | |||||||||||
Trident | Inigo | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Funded commitment | 18,000 | |||||||||||
Core Specialty | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Ownership percentage, fully diluted basis | 25.20% | 24.70% | 24.70% | 25.20% | ||||||||
Decrease in investment | $ 4,000 | |||||||||||
Earnings (loss) from equity method investments | $ (3,700) | (6,700) | ||||||||||
Northshore | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Privately held equity investment | $ 34,000 | $ 34,000 | ||||||||||
North Bay | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Ownership percentage in noncontrolling interest by parent | 59.00% | |||||||||||
North Bay | Trident | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Interest owned by an entity (percent) | 39.30% | |||||||||||
North Bay | Dowling | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Interest owned by an entity (percent) | 1.70% | |||||||||||
SSHL | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Ownership percentage in noncontrolling interest by parent | 59.00% | 59.00% | ||||||||||
SSHL | Trident | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Interest owned by an entity (percent) | 39.30% | 39.30% | ||||||||||
SSHL | Dowling | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Interest owned by an entity (percent) | 1.70% | 1.70% | ||||||||||
SSHL | North Bay | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Ownership percentage in noncontrolling interest by parent | 100.00% | |||||||||||
Northshore | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Ownership percentage in noncontrolling interest by parent | 54.10% | 13.80% | ||||||||||
Northshore | Trident | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Interest owned by an entity (percent) | 36.00% | 76.30% | ||||||||||
Northshore | Dowling | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Interest owned by an entity (percent) | 1.60% | |||||||||||
Northshore | North Bay | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Ownership percentage in noncontrolling interest by parent | 92.10% | |||||||||||
Northshore | Core Specialty | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Interest owned by an entity (percent) | 13.80% | |||||||||||
Core Specialty | Dowling | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Interest owned by an entity (percent) | 0.40% | |||||||||||
StarStone US | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Ownership percentage in noncontrolling interest by parent | 59.00% | |||||||||||
SUL | Trident | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Interest owned by an entity (percent) | 39.30% | |||||||||||
SUL | Dowling | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Interest owned by an entity (percent) | 1.70% | |||||||||||
Inigo | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Ownership percentage in noncontrolling interest by parent | 6.50% | 6.50% | ||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Gain (loss) on sale of subsidiaries | $ 14,894 | |||||||||||
Northshore | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Gain (loss) on sale of subsidiaries | (7,800) | |||||||||||
Northshore | Disposal group, held-for-sale | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Restricted investments | $ 94,400 | |||||||||||
StarStone US | Discontinued Operations, Disposed of by Sale | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Consideration received | $ 282,000 | |||||||||||
Value of shares received | 235,000 | |||||||||||
Cash consideration | $ 47,000 | |||||||||||
SUL | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Gain (loss) on sale of subsidiaries | 23,100 | 23,067 | ||||||||||
Proceeds from sale | 600 | |||||||||||
Proceeds from sale, value of shares | $ 30,000 | |||||||||||
Arena | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Gain (loss) on sale of subsidiaries | $ (300) | $ (329) | ||||||||||
Proceeds from sale | $ 1,000 |
Divestitures, Held-For-Sale B_4
Divestitures, Held-For-Sale Businesses and Discontinued Operations - Syndicate Results (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Distribution of SGL No.1 share of Syndicate 609 results | $ 19,115 |
Net receivable (payable) | 0 |
Arden | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Due to Arden under reinsurance agreement | (7,965) |
Atrium 5 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Due to Atrium 5 Limited under Capacity Lease Agreement | $ (11,150) |
Divestitures, Held-For-Sale B_5
Divestitures, Held-For-Sale Businesses and Discontinued Operations - Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
ASSETS | |||||
TOTAL ASSETS HELD-FOR-SALE | $ 0 | $ 0 | $ 711,278 | ||
LIABILITIES | |||||
TOTAL LIABILITIES HELD-FOR-SALE | 0 | 0 | 483,657 | ||
EXPENSES | |||||
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | 0 | $ (1,152) | 0 | $ (3,221) | |
Northshore | Disposal group, held-for-sale | |||||
ASSETS | |||||
Other investments, at fair value | 9,897 | ||||
Total investments | 173,126 | ||||
Cash and cash equivalents | 71,156 | ||||
Restricted cash and cash equivalents | 152,044 | ||||
Premiums receivable | 62,392 | ||||
Reinsurance balances recoverable on paid and unpaid losses | 37,341 | ||||
Funds held by reinsured companies | 32,226 | ||||
Other assets | 182,993 | ||||
TOTAL ASSETS HELD-FOR-SALE | 711,278 | ||||
LIABILITIES | |||||
Losses and loss adjustment expenses | 254,149 | ||||
Insurance and reinsurance balances payable | 12,393 | ||||
Debt obligations | 39,850 | ||||
Other liabilities | 177,265 | ||||
TOTAL LIABILITIES HELD-FOR-SALE | 483,657 | ||||
NET ASSETS HELD-FOR-SALE | 227,621 | ||||
Northshore | Disposal group, held-for-sale | Short-term investments | |||||
ASSETS | |||||
Available-for-sale, at fair value | 1,720 | ||||
Northshore | Disposal group, held-for-sale | Fixed maturity investments | |||||
ASSETS | |||||
Available-for-sale, at fair value | 7,483 | ||||
Trading, at fair value | $ 154,026 | ||||
StarStone US | Discontinued Operations, Disposed of by Sale | |||||
INCOME | |||||
Net premiums earned | 65,403 | 165,949 | |||
Net investment income | 3,699 | 7,414 | |||
Net realized and unrealized gains | 6,262 | 847 | |||
Other income | 24 | 25 | |||
Total income | 75,388 | 174,235 | |||
EXPENSES | |||||
Net incurred losses and loss adjustment expenses | 48,115 | 112,709 | |||
Acquisition costs | 12,251 | 32,794 | |||
General and administrative expenses | 15,645 | 30,729 | |||
Interest expense | 591 | 1,180 | |||
Net foreign exchange gains | (11) | (2) | |||
Total expenses | 76,591 | 177,410 | |||
LOSS BEFORE INCOME TAXES | (1,203) | (3,175) | |||
Income tax benefit (expense) | 51 | (46) | |||
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | (1,152) | (3,221) | |||
Net loss (earnings) from discontinued operations attributable to noncontrolling interest | 473 | 1,321 | |||
NET EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | (679) | (1,900) | |||
Discontinued Operation, Continuing Involvement [Abstract] | |||||
Total income | (1,959) | 3,650 | (387) | 7,363 | |
Total expenses (income) | 3,468 | (7,239) | 1,068 | (14,899) | |
Net earnings (loss) | $ (5,427) | $ 10,889 | $ (1,455) | $ 22,262 |
Divestitures, Held-For-Sale B_6
Divestitures, Held-For-Sale Businesses and Discontinued Operations - Gain (Loss) On Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net gain on sale of subsidiaries | $ 0 | $ 0 | $ 14,894 | $ 0 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net gain on sale of subsidiaries | 14,894 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Atrium | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net gain on sale of subsidiaries | (7,844) | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | SUL | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net gain on sale of subsidiaries | $ 23,100 | 23,067 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Arena | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net gain on sale of subsidiaries | $ (300) | $ (329) |
Investments - Asset Types - Fix
Investments - Asset Types - Fixed Maturity Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, fair value | $ 5,576,511 | $ 3,658,895 |
Fair value | 10,703,957 | 9,319,179 |
U.S. government and agency | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, fair value | 538,601 | 717,998 |
Fair value | 789,439 | 951,048 |
U.K. government | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, fair value | 11,586 | 13,574 |
Fair value | 41,696 | 51,082 |
Other government | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, fair value | 125,647 | 150,127 |
Fair value | 480,279 | 502,153 |
Corporate | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, fair value | 3,248,288 | 1,937,349 |
Fair value | 6,652,998 | 5,686,732 |
Municipal | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, fair value | 105,550 | 30,032 |
Fair value | 244,459 | 162,669 |
Residential mortgage-backed | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, fair value | 397,707 | 328,871 |
Fair value | 572,239 | 553,945 |
Commercial mortgage-backed | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, fair value | 483,990 | 276,488 |
Fair value | 987,254 | 854,090 |
Asset-backed | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, fair value | 665,142 | 204,456 |
Fair value | 935,593 | 557,460 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value | 420,900 | 458,100 |
Short-term investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 19,788 | 5,129 |
Debt securities, fair value | 110,473 | 263,795 |
Short-term investments | U.S. government and agency | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 15,683 | 0 |
Debt securities, fair value | 88,177 | 243,556 |
Short-term investments | U.K. government | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 0 | 0 |
Debt securities, fair value | 0 | 0 |
Short-term investments | Other government | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 4,105 | 3,424 |
Debt securities, fair value | 0 | 3,213 |
Short-term investments | Corporate | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 0 | 1,705 |
Debt securities, fair value | 22,296 | 17,026 |
Short-term investments | Municipal | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 0 | 0 |
Debt securities, fair value | 0 | 0 |
Short-term investments | Residential mortgage-backed | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 0 | 0 |
Debt securities, fair value | 0 | 0 |
Short-term investments | Commercial mortgage-backed | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 0 | 0 |
Debt securities, fair value | 0 | 0 |
Short-term investments | Asset-backed | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 0 | 0 |
Debt securities, fair value | 0 | 0 |
Fixed maturity investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 4,088,402 | 4,594,892 |
Debt securities, fair value | 5,466,038 | 3,395,100 |
Fixed maturity investments | U.S. government and agency | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 109,398 | 123,874 |
Debt securities, fair value | 450,424 | 474,442 |
Fixed maturity investments | U.K. government | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 30,110 | 37,508 |
Debt securities, fair value | 11,586 | 13,574 |
Fixed maturity investments | Other government | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 334,134 | 327,437 |
Debt securities, fair value | 125,647 | 146,914 |
Fixed maturity investments | Corporate | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 2,884,794 | 3,227,726 |
Debt securities, fair value | 3,225,992 | 1,920,323 |
Fixed maturity investments | Municipal | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 86,860 | 79,959 |
Debt securities, fair value | 105,550 | 30,032 |
Fixed maturity investments | Residential mortgage-backed | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 130,711 | 154,471 |
Debt securities, fair value | 397,707 | 328,871 |
Fixed maturity investments | Commercial mortgage-backed | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 296,776 | 347,225 |
Debt securities, fair value | 483,990 | 276,488 |
Fixed maturity investments | Asset-backed | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 215,619 | 296,692 |
Debt securities, fair value | 665,142 | 204,456 |
Funds held - directly managed | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 1,019,256 | 1,060,263 |
Funds held - directly managed | U.S. government and agency | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 125,757 | 109,176 |
Funds held - directly managed | U.K. government | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 0 | 0 |
Funds held - directly managed | Other government | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 16,393 | 21,165 |
Funds held - directly managed | Corporate | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 519,916 | 519,952 |
Funds held - directly managed | Municipal | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 52,049 | 52,678 |
Funds held - directly managed | Residential mortgage-backed | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 43,821 | 70,603 |
Funds held - directly managed | Commercial mortgage-backed | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 206,488 | 230,377 |
Funds held - directly managed | Asset-backed | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | $ 54,832 | $ 56,312 |
Investments - Contractual Matur
Investments - Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value | ||
Fair Value | $ 10,703,957 | $ 9,319,179 |
Residential mortgage-backed | ||
Fair Value | ||
Fair Value | 572,239 | 553,945 |
Commercial mortgage-backed | ||
Fair Value | ||
Fair Value | 987,254 | 854,090 |
Asset-backed | ||
Fair Value | ||
Fair Value | 935,593 | $ 557,460 |
Short-Term Investments and Fixed Maturities | ||
Amortized Cost | ||
One year or less | 527,076 | |
More than one year through two years | 936,548 | |
More than two years through five years | 2,405,532 | |
More than five years through ten years | 2,355,524 | |
More than ten years | 1,664,804 | |
Trading securities, amortized cost | 10,364,623 | |
Fair Value | ||
One year or less | 532,927 | |
More than one year through two years | 953,402 | |
More than two years through five years | 2,479,482 | |
More than five years through ten years | 2,455,554 | |
More than ten years | 1,787,506 | |
Fair Value | $ 10,703,957 | |
% of Total Fair Value | ||
One year or less | 5.00% | |
More than one year through two years | 8.90% | |
More than two years through five years | 23.30% | |
More than five years through ten years | 22.90% | |
More than ten years | 16.70% | |
Trading securities, percentage of fair value | 100.00% | |
Short-Term Investments and Fixed Maturities | Residential mortgage-backed | ||
Amortized Cost | ||
Securities without single maturity date | $ 569,169 | |
Fair Value | ||
Securities without single maturity date | $ 572,239 | |
% of Total Fair Value | ||
Securities without single maturity date | 5.30% | |
Short-Term Investments and Fixed Maturities | Commercial mortgage-backed | ||
Amortized Cost | ||
Securities without single maturity date | $ 966,496 | |
Fair Value | ||
Securities without single maturity date | $ 987,254 | |
% of Total Fair Value | ||
Securities without single maturity date | 9.20% | |
Short-Term Investments and Fixed Maturities | Asset-backed | ||
Amortized Cost | ||
Securities without single maturity date | $ 939,474 | |
Fair Value | ||
Securities without single maturity date | $ 935,593 | |
% of Total Fair Value | ||
Securities without single maturity date | 8.70% |
Investments - Credit Ratings (D
Investments - Credit Ratings (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 10,364,623 | |
Fair value | 10,703,957 | $ 9,319,179 |
Non- Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 323,321 | |
Marketable Securities | Portfolio Concentration Risk | Trading Securities and Available for Sale Securities | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
% of Total Investments | 100.00% | |
Marketable Securities | Credit Rating Concentration Risk | Non- Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
% of Total Investments | 3.00% | |
AAA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 2,792,268 | |
AAA Rated | Marketable Securities | Credit Rating Concentration Risk | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
% of Total Investments | 26.10% | |
AA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 1,394,582 | |
AA Rated | Marketable Securities | Credit Rating Concentration Risk | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
% of Total Investments | 13.00% | |
A Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 3,388,526 | |
A Rated | Marketable Securities | Credit Rating Concentration Risk | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
% of Total Investments | 31.70% | |
BBB Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 2,780,969 | |
BBB Rated | Marketable Securities | Credit Rating Concentration Risk | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
% of Total Investments | 26.00% | |
Not Rated | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 24,291 | |
Not Rated | Marketable Securities | Credit Rating Concentration Risk | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
% of Total Investments | 0.20% | |
U.S. government and agency | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 784,054 | |
Fair value | 789,439 | 951,048 |
U.S. government and agency | Non- Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 0 | |
U.S. government and agency | Marketable Securities | Portfolio Concentration Risk | Trading Securities and Available for Sale Securities | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
% of Total Investments | 7.40% | |
U.S. government and agency | AAA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 788,822 | |
U.S. government and agency | AA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 381 | |
U.S. government and agency | A Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 0 | |
U.S. government and agency | BBB Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 236 | |
U.S. government and agency | Not Rated | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 0 | |
U.K. government | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Amortized Cost | 40,011 | |
Fair value | 41,696 | 51,082 |
U.K. government | Non- Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 0 | |
U.K. government | Marketable Securities | Portfolio Concentration Risk | Trading Securities and Available for Sale Securities | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
% of Total Investments | 0.40% | |
U.K. government | AAA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 0 | |
U.K. government | AA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 34,379 | |
U.K. government | A Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 7,317 | |
U.K. government | BBB Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 0 | |
U.K. government | Not Rated | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 0 | |
Other government | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Amortized Cost | 460,069 | |
Fair value | 480,279 | 502,153 |
Other government | Non- Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 4,902 | |
Other government | Marketable Securities | Portfolio Concentration Risk | Trading Securities and Available for Sale Securities | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
% of Total Investments | 4.50% | |
Other government | AAA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 213,984 | |
Other government | AA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 168,864 | |
Other government | A Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 46,640 | |
Other government | BBB Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 45,889 | |
Other government | Not Rated | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 0 | |
Corporate | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,378,115 | |
Fair value | 6,652,998 | 5,686,732 |
Corporate | Non- Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 291,394 | |
Corporate | Marketable Securities | Portfolio Concentration Risk | Trading Securities and Available for Sale Securities | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
% of Total Investments | 62.20% | |
Corporate | AAA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 166,647 | |
Corporate | AA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 663,162 | |
Corporate | A Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 2,964,842 | |
Corporate | BBB Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 2,550,601 | |
Corporate | Not Rated | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 16,352 | |
Municipal | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Amortized Cost | 227,235 | |
Fair value | 244,459 | 162,669 |
Municipal | Non- Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 0 | |
Municipal | Marketable Securities | Portfolio Concentration Risk | Trading Securities and Available for Sale Securities | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
% of Total Investments | 2.30% | |
Municipal | AAA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 11,820 | |
Municipal | AA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 129,533 | |
Municipal | A Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 82,076 | |
Municipal | BBB Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 20,937 | |
Municipal | Not Rated | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 93 | |
Residential mortgage-backed | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Amortized Cost | 569,169 | |
Fair value | 572,239 | 553,945 |
Residential mortgage-backed | Non- Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 1,413 | |
Residential mortgage-backed | Marketable Securities | Portfolio Concentration Risk | Trading Securities and Available for Sale Securities | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
% of Total Investments | 5.30% | |
Residential mortgage-backed | AAA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 557,182 | |
Residential mortgage-backed | AA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 2,423 | |
Residential mortgage-backed | A Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 2,201 | |
Residential mortgage-backed | BBB Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 8,920 | |
Residential mortgage-backed | Not Rated | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 100 | |
Commercial mortgage-backed | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Amortized Cost | 966,496 | |
Fair value | 987,254 | 854,090 |
Commercial mortgage-backed | Non- Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 3,831 | |
Commercial mortgage-backed | Marketable Securities | Portfolio Concentration Risk | Trading Securities and Available for Sale Securities | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
% of Total Investments | 9.20% | |
Commercial mortgage-backed | AAA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 705,402 | |
Commercial mortgage-backed | AA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 116,062 | |
Commercial mortgage-backed | A Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 85,728 | |
Commercial mortgage-backed | BBB Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 71,649 | |
Commercial mortgage-backed | Not Rated | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 4,582 | |
Asset-backed | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Amortized Cost | 939,474 | |
Fair value | 935,593 | $ 557,460 |
Asset-backed | Non- Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 21,781 | |
Asset-backed | Marketable Securities | Portfolio Concentration Risk | Trading Securities and Available for Sale Securities | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
% of Total Investments | 8.70% | |
Asset-backed | AAA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 348,411 | |
Asset-backed | AA Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 279,778 | |
Asset-backed | A Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 199,722 | |
Asset-backed | BBB Rated | Investment Grade | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | 82,737 | |
Asset-backed | Not Rated | ||
Schedule of Trading Securities and Available-for-sale Securities [Line Items] | ||
Fair value | $ 3,164 |
Investments - Available-for-sal
Investments - Available-for-sale Portfolios - Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | $ 5,554,105 | $ 3,576,641 | ||||
Gross Unrealized Gains | 55,336 | 88,514 | ||||
Non-Credit Related Losses | (25,544) | (5,938) | ||||
Allowance for Credit Losses | (7,386) | $ (12,538) | (322) | $ (3,673) | $ (14,324) | $ 0 |
Debt securities, fair value | 5,576,511 | 3,658,895 | ||||
U.S. government and agency | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 539,883 | 715,527 | ||||
Gross Unrealized Gains | 1,754 | 3,305 | ||||
Non-Credit Related Losses | (3,036) | (834) | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Debt securities, fair value | 538,601 | 717,998 | ||||
U.K. government | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 11,357 | 12,494 | ||||
Gross Unrealized Gains | 289 | 1,080 | ||||
Non-Credit Related Losses | (60) | 0 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Debt securities, fair value | 11,586 | 13,574 | ||||
Other government | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 122,336 | 142,459 | ||||
Gross Unrealized Gains | 3,882 | 7,721 | ||||
Non-Credit Related Losses | (530) | (53) | ||||
Allowance for Credit Losses | (41) | (68) | 0 | 0 | 0 | 0 |
Debt securities, fair value | 125,647 | 150,127 | ||||
Corporate | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 3,231,801 | 1,873,184 | ||||
Gross Unrealized Gains | 39,415 | 65,913 | ||||
Non-Credit Related Losses | (15,757) | (1,567) | ||||
Allowance for Credit Losses | (7,171) | (12,206) | (181) | (3,090) | (14,323) | 0 |
Debt securities, fair value | 3,248,288 | 1,937,349 | ||||
Municipal | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 103,993 | 28,881 | ||||
Gross Unrealized Gains | 1,823 | 1,155 | ||||
Non-Credit Related Losses | (266) | (4) | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Debt securities, fair value | 105,550 | 30,032 | ||||
Residential mortgage-backed | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 398,564 | 326,268 | ||||
Gross Unrealized Gains | 1,666 | 3,292 | ||||
Non-Credit Related Losses | (2,506) | (689) | ||||
Allowance for Credit Losses | (17) | 0 | 0 | |||
Debt securities, fair value | 397,707 | 328,871 | ||||
Commercial mortgage-backed | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 481,909 | 273,516 | ||||
Gross Unrealized Gains | 5,277 | 5,202 | ||||
Non-Credit Related Losses | (3,039) | (2,097) | ||||
Allowance for Credit Losses | (157) | (264) | (133) | (494) | (1) | 0 |
Debt securities, fair value | 483,990 | 276,488 | ||||
Asset-backed | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 664,262 | 204,312 | ||||
Gross Unrealized Gains | 1,230 | 846 | ||||
Non-Credit Related Losses | (350) | (694) | ||||
Allowance for Credit Losses | 0 | $ 0 | (8) | $ (89) | $ 0 | $ 0 |
Debt securities, fair value | $ 665,142 | $ 204,456 |
Investments - Gross Unrealized
Investments - Gross Unrealized Losses (Details) $ in Thousands | Jun. 30, 2021USD ($)Security | Dec. 31, 2020USD ($)Security |
Fair Value | ||
12 Months or Greater | $ 7,273 | $ 4,664 |
Less Than 12 Months | 2,600,242 | 527,618 |
Total | 2,607,515 | 532,282 |
Gross Unrealized Losses | ||
12 Months or Greater | (116) | (163) |
Less Than 12 Months | (16,080) | (4,805) |
Total | $ (16,196) | $ (4,968) |
Number of securities classified as available-for-sale in an unrealized loss position | Security | 1,503 | 407 |
Number of securities classified as available-for-sale in an unrealized loss position for twelve months or longer | Security | 13 | 2 |
U.S. government and agency | ||
Fair Value | ||
12 Months or Greater | $ 0 | $ 0 |
Less Than 12 Months | 413,863 | 55,839 |
Total | 413,863 | 55,839 |
Gross Unrealized Losses | ||
12 Months or Greater | 0 | 0 |
Less Than 12 Months | (3,036) | (834) |
Total | (3,036) | (834) |
U.K. government | ||
Fair Value | ||
12 Months or Greater | 0 | |
Less Than 12 Months | 4,175 | |
Total | 4,175 | |
Gross Unrealized Losses | ||
12 Months or Greater | 0 | |
Less Than 12 Months | (60) | |
Total | (60) | |
Other government | ||
Fair Value | ||
12 Months or Greater | 0 | 0 |
Less Than 12 Months | 26,701 | 7,971 |
Total | 26,701 | 7,971 |
Gross Unrealized Losses | ||
12 Months or Greater | 0 | 0 |
Less Than 12 Months | (257) | (53) |
Total | (257) | (53) |
Corporate | ||
Fair Value | ||
12 Months or Greater | 2,016 | 0 |
Less Than 12 Months | 1,174,039 | 199,048 |
Total | 1,176,055 | 199,048 |
Gross Unrealized Losses | ||
12 Months or Greater | (49) | 0 |
Less Than 12 Months | (6,928) | (1,224) |
Total | (6,977) | (1,224) |
Municipal | ||
Fair Value | ||
12 Months or Greater | 0 | 0 |
Less Than 12 Months | 26,310 | 1,690 |
Total | 26,310 | 1,690 |
Gross Unrealized Losses | ||
12 Months or Greater | 0 | 0 |
Less Than 12 Months | (266) | (4) |
Total | (266) | (4) |
Residential mortgage-backed | ||
Fair Value | ||
12 Months or Greater | 2,372 | 4,626 |
Less Than 12 Months | 256,022 | 79,149 |
Total | 258,394 | 83,775 |
Gross Unrealized Losses | ||
12 Months or Greater | (2) | (125) |
Less Than 12 Months | (2,340) | (564) |
Total | (2,342) | (689) |
Commercial mortgage-backed | ||
Fair Value | ||
12 Months or Greater | 2,885 | 38 |
Less Than 12 Months | 265,257 | 67,094 |
Total | 268,142 | 67,132 |
Gross Unrealized Losses | ||
12 Months or Greater | (65) | (38) |
Less Than 12 Months | (2,843) | (1,562) |
Total | (2,908) | (1,600) |
Asset-backed | ||
Fair Value | ||
12 Months or Greater | 0 | 0 |
Less Than 12 Months | 433,875 | 116,827 |
Total | 433,875 | 116,827 |
Gross Unrealized Losses | ||
12 Months or Greater | 0 | 0 |
Less Than 12 Months | (350) | (564) |
Total | $ (350) | $ (564) |
Investments - Allowance for Cre
Investments - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | $ (12,538) | $ (14,324) | $ (322) | $ 0 |
Allowances for credit losses on securities for which credit losses were not previously recorded | (516) | (731) | (12,938) | (2,409) |
Reductions for securities sold during the period | 62 | 1,388 | 73 | 1,773 |
Reductions in the allowance for credit losses on securities we either intend to sell or more likely than not, we will be required to sell before the recovery of their amortized cost basis | 22 | |||
Decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period | 5,606 | 9,994 | 5,801 | |
Allowance for credit losses, end of period | (7,386) | (3,673) | (7,386) | (3,673) |
Other government | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | (68) | 0 | 0 | 0 |
Allowances for credit losses on securities for which credit losses were not previously recorded | 0 | 0 | (68) | 0 |
Reductions for securities sold during the period | 1 | 0 | 1 | 0 |
Reductions in the allowance for credit losses on securities we either intend to sell or more likely than not, we will be required to sell before the recovery of their amortized cost basis | 22 | |||
Decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period | 26 | 0 | 26 | |
Allowance for credit losses, end of period | (41) | 0 | (41) | 0 |
Corporate | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | (12,206) | (14,323) | (181) | 0 |
Allowances for credit losses on securities for which credit losses were not previously recorded | (455) | (149) | (12,577) | (1,876) |
Reductions for securities sold during the period | 61 | 1,388 | 72 | 1,773 |
Reductions in the allowance for credit losses on securities we either intend to sell or more likely than not, we will be required to sell before the recovery of their amortized cost basis | 0 | |||
Decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period | 5,429 | 9,994 | 5,515 | |
Allowance for credit losses, end of period | (7,171) | (3,090) | (7,171) | (3,090) |
Residential mortgage-backed | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | 0 | 0 | ||
Allowances for credit losses on securities for which credit losses were not previously recorded | (17) | (17) | ||
Reductions for securities sold during the period | 0 | 0 | ||
Decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period | 0 | 0 | ||
Allowance for credit losses, end of period | (17) | (17) | ||
Commercial mortgage-backed | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | (264) | (1) | (133) | 0 |
Allowances for credit losses on securities for which credit losses were not previously recorded | (5) | (493) | (237) | (444) |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Reductions in the allowance for credit losses on securities we either intend to sell or more likely than not, we will be required to sell before the recovery of their amortized cost basis | 0 | |||
Decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period | 112 | 0 | 213 | |
Allowance for credit losses, end of period | (157) | (494) | (157) | (494) |
Asset-backed | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | 0 | 0 | (8) | 0 |
Allowances for credit losses on securities for which credit losses were not previously recorded | (39) | (89) | (39) | (89) |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Reductions in the allowance for credit losses on securities we either intend to sell or more likely than not, we will be required to sell before the recovery of their amortized cost basis | 0 | |||
Decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period | 39 | 0 | 47 | |
Allowance for credit losses, end of period | $ 0 | $ (89) | $ 0 | (89) |
Cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | (3,059) | |||
Cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance | Other government | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | (22) | |||
Cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance | Corporate | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | (2,987) | |||
Cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance | Commercial mortgage-backed | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | (50) | |||
Cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance | Asset-backed | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | $ 0 |
Investments - Equities - Equity
Investments - Equities - Equity Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equities, at fair value | $ 1,158,219 | $ 846,795 |
Publicly traded equity investments in common and preferred stocks | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equities, at fair value | 304,701 | 260,767 |
Exchange-traded funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equities, at fair value | 504,793 | 311,287 |
Privately held equity investments in common and preferred stocks | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equities, at fair value | $ 348,725 | $ 274,741 |
Investments - Other Investments
Investments - Other Investments, at Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Other Investments [Line Items] | ||
Other investments, at fair value | $ 1,814,593 | $ 4,244,034 |
Valuation lag period | 3 months | |
Hedge funds | ||
Other Investments [Line Items] | ||
Other investments, at fair value | 2,638,339 | |
Hedge funds | Consolidated Entity, Excluding Consolidated VIE | ||
Other Investments [Line Items] | ||
Other investments, at fair value | $ 73,130 | |
Fixed income funds | ||
Other Investments [Line Items] | ||
Other investments, at fair value | 603,889 | 552,541 |
Equity funds | ||
Other Investments [Line Items] | ||
Other investments, at fair value | 5,617 | 190,767 |
Private equity funds | ||
Other Investments [Line Items] | ||
Other investments, at fair value | 536,368 | 363,103 |
Unfunded commitments | 48,100 | |
CLO equities | ||
Other Investments [Line Items] | ||
Other investments, at fair value | 145,103 | 128,083 |
CLO equity funds | ||
Other Investments [Line Items] | ||
Other investments, at fair value | 190,158 | 166,523 |
Private credit funds | ||
Other Investments [Line Items] | ||
Other investments, at fair value | 242,359 | 192,319 |
Others | ||
Other Investments [Line Items] | ||
Other investments, at fair value | 17,969 | 12,359 |
InRe Fund | ||
Other Investments [Line Items] | ||
Other investments, at fair value | $ 2,400,000 | |
Other investments | ||
Other Investments [Line Items] | ||
Unfunded commitments | $ 1,400,000 |
Investments - Other Investmen_2
Investments - Other Investments at Fair Value by Notice Period (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | ||
Other investments, at fair value | $ 1,814,593 | $ 4,244,034 |
Hedge funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 2,638,339 | |
Hedge funds | Consolidated Entity, Excluding Consolidated VIE | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 73,130 | |
Fixed income funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 603,889 | 552,541 |
Equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 5,617 | 190,767 |
Private equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 536,368 | 363,103 |
CLO equities | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 145,103 | 128,083 |
CLO equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 190,158 | 166,523 |
Private credit funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 242,359 | 192,319 |
Others | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 17,969 | 12,359 |
Less than 1 Year | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 965,100 | |
Less than 1 Year | Hedge funds | Consolidated Entity, Excluding Consolidated VIE | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 73,130 | |
Less than 1 Year | Fixed income funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 568,474 | |
Less than 1 Year | Equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 5,617 | |
Less than 1 Year | Private equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
Less than 1 Year | CLO equities | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 145,103 | |
Less than 1 Year | CLO equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 172,776 | |
Less than 1 Year | Private credit funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
Less than 1 Year | Others | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
1-2 years | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 62,210 | |
1-2 years | Hedge funds | Consolidated Entity, Excluding Consolidated VIE | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
1-2 years | Fixed income funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
1-2 years | Equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
1-2 years | Private equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 50,950 | |
1-2 years | CLO equities | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
1-2 years | CLO equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 11,260 | |
1-2 years | Private credit funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
1-2 years | Others | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
2-3 years | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 5,757 | |
2-3 years | Hedge funds | Consolidated Entity, Excluding Consolidated VIE | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
2-3 years | Fixed income funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
2-3 years | Equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
2-3 years | Private equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
2-3 years | CLO equities | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
2-3 years | CLO equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 5,757 | |
2-3 years | Private credit funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
2-3 years | Others | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
More than 3 years | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
More than 3 years | Hedge funds | Consolidated Entity, Excluding Consolidated VIE | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
More than 3 years | Fixed income funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
More than 3 years | Equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
More than 3 years | Private equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
More than 3 years | CLO equities | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
More than 3 years | CLO equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
More than 3 years | Private credit funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
More than 3 years | Others | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
Not Eligible/ Restricted | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 781,526 | |
Not Eligible/ Restricted | Hedge funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | $ 48,200 | |
Not Eligible/ Restricted | Hedge funds | Consolidated Entity, Excluding Consolidated VIE | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
Not Eligible/ Restricted | Fixed income funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 35,415 | |
Not Eligible/ Restricted | Equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
Not Eligible/ Restricted | Private equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 485,418 | |
Not Eligible/ Restricted | CLO equities | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 0 | |
Not Eligible/ Restricted | CLO equity funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 365 | |
Not Eligible/ Restricted | Private credit funds | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | 242,359 | |
Not Eligible/ Restricted | Others | ||
Schedule of Investments [Line Items] | ||
Other investments, at fair value | $ 17,969 |
Investments - Equity Method Inv
Investments - Equity Method Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 936,430 | $ 832,295 |
Citco III Limited | HH CTCO Holdings Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership % | 6.20% | |
Convertible Preferred Stock | Citco III Limited | HH CTCO Holdings Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership % | 15.40% | |
Enhanzed Re | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership % | 47.40% | 47.40% |
Equity method investments | $ 433,993 | $ 330,289 |
HH CTCO Holdings Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 54,069 | $ 53,022 |
HH CTCO Holdings Limited | Common Stock | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership % | 31.90% | 31.90% |
Monument Re | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership % | 22.50% | 23.00% |
Equity method investments | $ 204,322 | $ 193,716 |
Monument Re | Common Stock | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership % | 20.00% | 20.00% |
Core Specialty | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership % | 24.70% | 25.20% |
Equity method investments | $ 224,270 | $ 235,000 |
Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership % | 27.00% | 27.00% |
Equity method investments | $ 19,776 | $ 20,268 |
Citco III Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 54,100 | $ 53,000 |
Equity Method Investments | Enhanzed Re | ||
Schedule of Equity Method Investments [Line Items] | ||
Unfunded commitments | $ 68,700 |
Investments - Funds Held Direct
Investments - Funds Held Directly Managed Components (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Funds Held, Directly Managed [Line Items] | ||
Funds held - directly managed | $ 1,028,503 | $ 1,074,890 |
Funds held - directly managed | ||
Schedule of Funds Held, Directly Managed [Line Items] | ||
Debt securities, trading | 1,019,256 | 1,060,263 |
Cash and cash equivalents | 3,895 | 9,067 |
Funds held - directly managed, other assets | 5,352 | 5,560 |
Funds held - directly managed | $ 1,028,503 | $ 1,074,890 |
Investments - Funds Held Dire_2
Investments - Funds Held Directly Managed - Fixed Maturity Components (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Funds held - Directly Managed - Fair Value Option | ||
Schedule of Funds Held, Directly Managed [Line Items] | ||
Trading securities, amortized cost | $ 108,654 | $ 106,938 |
Net unrealized gains: | ||
Change in fair value - fair value option accounting | 7,212 | 9,693 |
Change in fair value - embedded derivative accounting | 0 | 0 |
Debt securities, trading | 115,866 | 116,631 |
Funds held - Directly Managed - Variable Return | ||
Schedule of Funds Held, Directly Managed [Line Items] | ||
Trading securities, amortized cost | 843,482 | 859,403 |
Net unrealized gains: | ||
Change in fair value - fair value option accounting | 0 | 0 |
Change in fair value - embedded derivative accounting | 59,908 | 84,229 |
Debt securities, trading | 903,390 | 943,632 |
Funds held - directly managed | ||
Schedule of Funds Held, Directly Managed [Line Items] | ||
Trading securities, amortized cost | 952,136 | 966,341 |
Net unrealized gains: | ||
Change in fair value - fair value option accounting | 7,212 | 9,693 |
Change in fair value - embedded derivative accounting | 59,908 | 84,229 |
Debt securities, trading | $ 1,019,256 | $ 1,060,263 |
Investments - Funds Held Dire_3
Investments - Funds Held Directly Managed Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Funds held by reinsured companies | $ 2,201,958 | $ 635,819 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Net Investment Income [Line Items] | |||||
Gross investment income | $ 99,585 | $ 97,426 | $ 165,289 | $ 176,635 | |
Investment expenses | (3,267) | (2,983) | (6,882) | (7,478) | |
Net investment income | [1] | 76,147 | 94,443 | 138,236 | 169,157 |
InRe Fund | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | 2,595 | 2,595 | |||
Investment expenses | (22,766) | (22,766) | |||
Net investment income | (20,171) | 0 | (20,171) | 0 | |
Fixed maturity investments | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | 46,996 | 52,837 | 92,477 | 106,279 | |
Fixed maturity investments | InRe Fund | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | 456 | 456 | |||
Short-term investments and cash and cash equivalents | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | (188) | 752 | (182) | 3,377 | |
Funds held by reinsured companies | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | 32,420 | 24,099 | 32,008 | 24,369 | |
Funds held - directly managed | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | 6,894 | 10,685 | 13,931 | 19,501 | |
Investment income from fixed maturities and cash and cash equivalents | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | 86,122 | 88,373 | 138,234 | 153,526 | |
Equity investments | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | 4,632 | 3,762 | 8,930 | 9,725 | |
Other investments | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | 8,831 | 5,291 | 18,125 | 13,384 | |
Investment income from equities and other investments | |||||
Net Investment Income [Line Items] | |||||
Gross investment income | $ 13,463 | $ 9,053 | $ 27,055 | $ 23,109 | |
[1] | Includes amounts attributed to the InRe Fund, refer to Note 11 - "Variable Interest Entities" for additional information. |
Investments - Net Realized and
Investments - Net Realized and Unrealized Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Net realized gains on sale: | |||||
Gross realized gains on fixed maturity securities, AFS | $ 3,494 | $ 8,577 | $ 8,265 | $ 10,124 | |
Gross realized losses on fixed maturity securities, AFS | 2,864 | 4,567 | 6,766 | 6,593 | |
Decrease (increase) in allowance for expected credit losses on fixed maturity securities, AFS | (5,094) | (10,762) | 6,931 | 2,450 | |
Net realized investment losses on investment derivatives | (259) | 0 | (80) | 0 | |
Total net realized gains on sales | 340,202 | 58,195 | 346,341 | 61,406 | |
Net unrealized gains (losses): | |||||
Investment derivatives | (51) | 0 | 84 | 0 | |
Total net unrealized gains | 65,018 | 909,413 | 38,091 | 277,141 | |
Net realized and unrealized gains | [1] | 405,220 | 967,608 | 384,432 | 338,547 |
Sales of available-for-sale securities | 504,300 | 678,500 | 1,200,000 | 1,000,000 | |
InRe Fund | |||||
Net realized gains on sale: | |||||
Net realized gains (losses) on fixed maturity securities | 54,683 | 0 | 54,683 | 0 | |
Net realized gains on equity investments | 105,777 | 0 | 105,777 | 0 | |
Net realized investment losses on investment derivatives | 161,245 | 0 | 161,245 | 0 | |
Total net realized gains on sales | 321,705 | 0 | 321,705 | 0 | |
Net unrealized gains (losses): | |||||
Fixed maturity securities | (19,803) | 0 | (19,803) | 0 | |
Equity investments | 66,620 | 0 | 66,620 | 0 | |
Other Investments | (104,975) | 365,054 | (28,368) | 320,196 | |
Investment derivatives | (154,003) | 0 | (154,003) | 0 | |
Total net unrealized gains | (104,975) | 365,054 | (28,368) | 320,196 | |
Net realized and unrealized gains | 216,730 | 365,054 | 293,337 | 320,196 | |
Fixed maturity securities | |||||
Net realized gains on sale: | |||||
Gross realized gains on fixed maturity securities, AFS | 3,494 | 8,577 | 8,265 | 10,124 | |
Gross realized losses on fixed maturity securities, AFS | (2,864) | (4,567) | (6,766) | (6,593) | |
Decrease (increase) in allowance for expected credit losses on fixed maturity securities, AFS | 5,090 | 9,002 | (7,137) | (2,637) | |
Net realized gains (losses) on fixed maturity securities | 11,275 | 41,556 | 29,039 | 57,380 | |
Net unrealized gains (losses): | |||||
Fixed maturity securities | 40,011 | 300,948 | (128,912) | 44,471 | |
Funds held - directly managed | |||||
Net realized gains on sale: | |||||
Net realized gains (losses) on fixed maturity securities | 728 | 1,741 | 1,252 | 2,253 | |
Net unrealized gains (losses): | |||||
Fixed maturity securities | 17,530 | 60,107 | (26,660) | 34,805 | |
Equity investments | |||||
Net realized gains on sale: | |||||
Net realized gains on equity investments | 1,033 | 1,886 | 63 | 879 | |
Net unrealized gains (losses): | |||||
Equity investments | 52,003 | 39,333 | 81,964 | (52,619) | |
Other investments | |||||
Net unrealized gains (losses): | |||||
Other Investments | $ 60,500 | $ 143,971 | $ 139,983 | $ (69,712) | |
[1] | Includes amounts attributed to the InRe Fund, refer to Note 11 - "Variable Interest Entities" for additional information. |
Investments - Reconciliation to
Investments - Reconciliation to Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Gross realized gains on fixed maturity securities, AFS | $ 3,494 | $ 8,577 | $ 8,265 | $ 10,124 |
Gross realized losses on fixed maturity securities, AFS | (2,864) | (4,567) | (6,766) | (6,593) |
Tax effect | (101) | 0 | (376) | 0 |
Total reclassification adjustment | 529 | 4,222 | 1,123 | 4,010 |
Decrease (increase) in allowance for expected credit losses on fixed maturity securities, AFS | 5,094 | 10,762 | (6,931) | (2,450) |
Discontinued Operations | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Gross realized gains on fixed maturity securities, AFS | 0 | 269 | 0 | 536 |
Gross realized losses on fixed maturity securities, AFS | 0 | (57) | 0 | (57) |
Decrease (increase) in allowance for expected credit losses on fixed maturity securities, AFS | 0 | 1,760 | 0 | 187 |
Continuing Operations | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Decrease (increase) in allowance for expected credit losses on fixed maturity securities, AFS | 5,090 | 9,002 | (7,137) | (2,637) |
Tax effect | $ 4 | $ 0 | $ 206 | $ 0 |
Investments - Restricted Assets
Investments - Restricted Assets (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)syndicate | Dec. 31, 2020USD ($)syndicate | |
Line of Credit Facility [Line Items] | ||
Restricted cash and cash equivalents | $ 356,899 | $ 471,964 |
Collateral in trust for third party agreements | 5,529,480 | 4,924,866 |
Assets on deposit with regulatory authorities | 230,361 | 131,283 |
Funds at Lloyd's | 491,171 | 260,914 |
Restricted assets, total | $ 6,349,573 | $ 5,421,690 |
Number of syndicates | syndicate | 2 | 3 |
Asset Pledged as Collateral | ||
Line of Credit Facility [Line Items] | ||
Collateral for secured letter of credit facilities | $ 98,561 | $ 104,627 |
Derivative and Hedging Instru_3
Derivative and Hedging Instruments - Foreign Currency Hedging of Net Investments (Details) - Currency forward contracts - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Derivatives qualifying as hedging | |||||
Derivative [Line Items] | |||||
Gross Notional Amount | $ 621,511 | $ 621,511 | $ 603,691 | ||
Assets | 17,583 | 17,583 | 1,169 | ||
Liabilities | 2 | 2 | 28,947 | ||
Net gains (losses) on qualifying derivative hedges | (1,055) | $ (10,041) | 5,627 | $ 21,877 | |
Derivatives qualifying as hedging | AUD | |||||
Derivative [Line Items] | |||||
Gross Notional Amount | 64,543 | 64,543 | 73,852 | ||
Assets | 2,165 | 2,165 | 13 | ||
Liabilities | 0 | 0 | 5,060 | ||
Net gains (losses) on qualifying derivative hedges | 999 | (7,435) | 1,535 | 1,036 | |
Derivatives qualifying as hedging | EUR | |||||
Derivative [Line Items] | |||||
Gross Notional Amount | 250,592 | 250,592 | 217,168 | ||
Assets | 7,626 | 7,626 | 205 | ||
Liabilities | 0 | 0 | 8,889 | ||
Net gains (losses) on qualifying derivative hedges | (1,552) | (3,111) | 7,782 | (476) | |
Derivatives qualifying as hedging | GBP | |||||
Derivative [Line Items] | |||||
Gross Notional Amount | 306,376 | 306,376 | 312,671 | ||
Assets | 7,792 | 7,792 | 951 | ||
Liabilities | 2 | 2 | 14,998 | ||
Net gains (losses) on qualifying derivative hedges | (502) | 505 | (3,690) | 21,317 | |
Derivatives not qualifying as hedging | |||||
Derivative [Line Items] | |||||
Gross Notional Amount | 217,336 | 217,336 | 139,334 | ||
Assets | 4,497 | 4,497 | 2,835 | ||
Liabilities | 3,002 | 3,002 | 5,056 | ||
Gains (losses) on non-qualifying-hedges charged to net earnings | 626 | (4,503) | (1,289) | 4,778 | |
Derivatives not qualifying as hedging | AUD | |||||
Derivative [Line Items] | |||||
Gross Notional Amount | 27,436 | 27,436 | 28,848 | ||
Assets | 2,092 | 2,092 | 882 | ||
Liabilities | 831 | 831 | 2,847 | ||
Gains (losses) on non-qualifying-hedges charged to net earnings | 494 | (2,978) | 1,333 | (445) | |
Derivatives not qualifying as hedging | EUR | |||||
Derivative [Line Items] | |||||
Gross Notional Amount | 80,569 | 80,569 | 43,531 | ||
Assets | 0 | 0 | 1,782 | ||
Liabilities | 2,064 | 2,064 | 41 | ||
Gains (losses) on non-qualifying-hedges charged to net earnings | 274 | (224) | (2,051) | 952 | |
Derivatives not qualifying as hedging | GBP | |||||
Derivative [Line Items] | |||||
Gross Notional Amount | 62,103 | 62,103 | 2,731 | ||
Assets | 938 | 938 | 161 | ||
Liabilities | 59 | 59 | 404 | ||
Gains (losses) on non-qualifying-hedges charged to net earnings | 338 | 924 | 718 | 1,500 | |
Derivatives not qualifying as hedging | CAD | |||||
Derivative [Line Items] | |||||
Gross Notional Amount | 47,228 | 47,228 | 64,224 | ||
Assets | 1,467 | 1,467 | 10 | ||
Liabilities | 48 | 48 | $ 1,764 | ||
Gains (losses) on non-qualifying-hedges charged to net earnings | $ (480) | $ (2,225) | $ (1,289) | $ 2,771 |
Derivative and Hedging Instru_4
Derivative and Hedging Instruments - Investments in Call Options on Equities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2018 | |
Derivative [Line Items] | |||||
Unrealized loss in net earnings | $ 51 | $ 0 | $ (84) | $ 0 | |
Derivatives not qualifying as hedging | Call options on equity | |||||
Derivative [Line Items] | |||||
Unrealized loss in net earnings | $ 0 | $ 100 | |||
Gross Notional Amount | $ 10,000 |
Derivative and Hedging Instru_5
Derivative and Hedging Instruments - Forward Interest Rate Swaps (Details) $ in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | 15 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Apr. 07, 2020USD ($) | Dec. 31, 2019AUD ($) | |
Derivative [Line Items] | ||||||
Unrealized gain on equity securities | $ (51) | $ 0 | $ 84 | $ 0 | ||
Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Notional amount of derivative | $ 120 | |||||
Unrealized gain on equity securities | $ 100 | $ 800 | ||||
Gain on derivative | $ 500 |
Derivative and Hedging Instru_6
Derivative and Hedging Instruments - Summary of Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Credit Risk, Government Bond Future, Foreign Currency Forward Contracts | ||
Derivative [Line Items] | ||
Gross Notional Amount | $ (5,943) | $ (2,759) |
Assets | 74 | 129 |
Liabilities | 127 | 139 |
Futures contracts | Long positions | ||
Derivative [Line Items] | ||
Gross Notional Amount | 14,699 | 34,502 |
Assets | 56 | 32 |
Liabilities | 7 | 5 |
Futures contracts | Short positions | ||
Derivative [Line Items] | ||
Gross Notional Amount | (14,225) | (32,316) |
Assets | 1 | 6 |
Liabilities | 54 | 121 |
Currency forward contracts | Long positions | USD | ||
Derivative [Line Items] | ||
Gross Notional Amount | 394 | 1,428 |
Assets | 10 | 0 |
Liabilities | 0 | 13 |
Currency forward contracts | Long positions | GBP | ||
Derivative [Line Items] | ||
Gross Notional Amount | 7,432 | 1,278 |
Assets | 7 | 19 |
Liabilities | 0 | 0 |
Currency forward contracts | Short positions | USD | ||
Derivative [Line Items] | ||
Gross Notional Amount | (432) | (3,233) |
Assets | 0 | 60 |
Liabilities | 12 | 0 |
Currency forward contracts | Short positions | GBP | ||
Derivative [Line Items] | ||
Gross Notional Amount | (13,811) | (4,418) |
Assets | 0 | 12 |
Liabilities | $ 54 | $ 0 |
Derivative and Hedging Instru_7
Derivative and Hedging Instruments - Net Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative [Line Items] | ||||
Total net losses | $ (938) | $ 129 | $ (1,345) | $ 129 |
Credit default swaps | ||||
Derivative [Line Items] | ||||
Total net losses | (77) | 0 | (77) | 0 |
Futures contracts | ||||
Derivative [Line Items] | ||||
Total net losses | (230) | (37) | 83 | (37) |
Currency forward contracts | ||||
Derivative [Line Items] | ||||
Total net losses | $ (631) | $ 166 | $ (1,351) | $ 166 |
Reinsurance Balances Recovera_3
Reinsurance Balances Recoverable on Paid and Unpaid Losses - Total Reinsurance Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Effects of Reinsurance [Line Items] | |||||
Outstanding losses | $ 1,205,083 | $ 1,201,869 | |||
IBNR | 612,559 | 647,843 | |||
ULAE | 17,855 | 16,688 | |||
Fair value adjustments - acquired companies | (14,165) | (15,353) | |||
Fair value adjustments - fair value option | (33,607) | (21,427) | |||
Total reinsurance reserves recoverable | 1,787,725 | $ 1,869,535 | 1,829,620 | $ 1,902,749 | $ 1,927,624 |
Paid losses recoverable | 189,002 | 259,543 | |||
Total | 1,976,727 | 2,089,163 | |||
Reinsurance balances recoverable on paid and unpaid losses | 1,484,384 | 1,568,333 | |||
Reinsurance balances recoverable on paid and unpaid losses - fair value option | 492,343 | 520,830 | |||
Corporate & Other | |||||
Effects of Reinsurance [Line Items] | |||||
Outstanding losses | 0 | 0 | |||
IBNR | 0 | 0 | |||
ULAE | 0 | 0 | |||
Fair value adjustments - acquired companies | (14,165) | (15,353) | |||
Fair value adjustments - fair value option | (33,607) | (21,427) | |||
Total reinsurance reserves recoverable | (47,772) | (36,780) | |||
Paid losses recoverable | 0 | 0 | |||
Total | (47,772) | (36,780) | |||
Reinsurance balances recoverable on paid and unpaid losses | (14,165) | (15,353) | |||
Reinsurance balances recoverable on paid and unpaid losses - fair value option | (33,607) | (21,427) | |||
Run-off | |||||
Effects of Reinsurance [Line Items] | |||||
Outstanding losses | 1,179,211 | 938,231 | |||
IBNR | 563,115 | 508,082 | |||
ULAE | 16,901 | 16,688 | |||
Fair value adjustments - acquired companies | 0 | 0 | |||
Fair value adjustments - fair value option | 0 | 0 | |||
Total reinsurance reserves recoverable | 1,759,227 | 1,463,001 | |||
Paid losses recoverable | 188,602 | 172,309 | |||
Total | 1,947,829 | 1,635,310 | |||
Reinsurance balances recoverable on paid and unpaid losses | 1,421,879 | 1,093,053 | |||
Reinsurance balances recoverable on paid and unpaid losses - fair value option | 525,950 | 542,257 | |||
Legacy Underwriting | |||||
Effects of Reinsurance [Line Items] | |||||
Outstanding losses | 25,872 | 263,638 | |||
IBNR | 49,444 | 139,761 | |||
ULAE | 954 | 0 | |||
Fair value adjustments - acquired companies | 0 | 0 | |||
Fair value adjustments - fair value option | 0 | 0 | |||
Total reinsurance reserves recoverable | 76,270 | $ 88,957 | 403,399 | $ 442,905 | $ 385,613 |
Paid losses recoverable | 400 | 87,234 | |||
Total | 76,670 | 490,633 | |||
Reinsurance balances recoverable on paid and unpaid losses | 76,670 | 490,633 | |||
Reinsurance balances recoverable on paid and unpaid losses - fair value option | $ 0 | $ 0 |
Reinsurance Balances Recovera_4
Reinsurance Balances Recoverable on Paid and Unpaid Losses - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Insurance [Abstract] | ||
Reinsurance balances recoverable | $ 1,976,727 | $ 2,089,163 |
(Decrease) in reinsurance balances recoverable | $ (112,400) |
Reinsurance Balances Recovera_5
Reinsurance Balances Recoverable on Paid and Unpaid Losses - Top Ten Reinsurers (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)reinsurer | Dec. 31, 2020USD ($)reinsurer | |
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | $ 1,976,727 | $ 2,089,163 |
Corporate & Other | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | (47,772) | (36,780) |
Lloyds of London | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | 327,940 | 331,118 |
Michigan Catastrophic Claims Associations | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | 227,279 | 229,374 |
Reinsurance balances recoverable | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | $ 1,976,727 | $ 2,089,163 |
Concentration risk percentage | 100.00% | 100.00% |
Reinsurance balances recoverable | Reinsurer Concentration Risk | Corporate & Other | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | $ (47,772) | $ (36,780) |
Reinsurance balances recoverable | Top 10 reinsurers | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | $ 1,326,684 | $ 1,364,593 |
Concentration risk percentage | 67.10% | 65.30% |
Reinsurance balances recoverable | Top 10 reinsurers | Reinsurer Concentration Risk | Corporate & Other | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | $ 0 | $ 0 |
Reinsurance balances recoverable | Other reinsurers greater than $1 million | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | $ 626,456 | $ 697,602 |
Concentration risk percentage | 31.70% | 33.40% |
Reinsurance balances recoverable | Other reinsurers greater than $1 million | Reinsurer Concentration Risk | Corporate & Other | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | $ (47,772) | $ (36,780) |
Reinsurance balances recoverable | Other reinsurers less than $1 million | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | $ 23,587 | $ 26,968 |
Concentration risk percentage | 1.20% | 1.30% |
Reinsurance balances recoverable | Other reinsurers less than $1 million | Reinsurer Concentration Risk | Corporate & Other | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | $ 0 | $ 0 |
Reinsurance balances recoverable | Top 10 Total | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | $ 803,312 | $ 863,819 |
Number of external reinsurers | reinsurer | 7 | 7 |
Reinsurance balances recoverable | Top Ten Reinsurers, Three Non-Rated Reinsurers | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | $ 523,372 | $ 500,774 |
Number of external reinsurers | reinsurer | 3 | 3 |
Reinsurance balances recoverable | Top Ten Reinsurers, Non-Rated Reinsurers, US State Backed | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | $ 227,300 | $ 229,400 |
Reinsurance balances recoverable | Top Ten Reinsurers, Non-Rated Reinsurers, Provided Security | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | 70,100 | 73,800 |
Reinsurance balances recoverable | Top Ten Reinsurers, Non-Rated Reinsurers, Provided Security, Reinsurer Two | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | 226,000 | 208,400 |
Run-off | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | 1,947,829 | 1,635,310 |
Run-off | Reinsurance balances recoverable | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | 1,947,829 | 1,635,310 |
Run-off | Reinsurance balances recoverable | Top 10 reinsurers | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | 1,305,706 | 1,036,676 |
Run-off | Reinsurance balances recoverable | Other reinsurers greater than $1 million | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | 619,145 | 574,869 |
Run-off | Reinsurance balances recoverable | Other reinsurers less than $1 million | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | 22,978 | 23,765 |
Legacy Underwriting | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | 76,670 | 490,633 |
Legacy Underwriting | Reinsurance balances recoverable | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | 76,670 | 490,633 |
Legacy Underwriting | Reinsurance balances recoverable | Top 10 reinsurers | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | 20,978 | 327,917 |
Legacy Underwriting | Reinsurance balances recoverable | Other reinsurers greater than $1 million | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | 55,083 | 159,513 |
Legacy Underwriting | Reinsurance balances recoverable | Other reinsurers less than $1 million | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | 609 | 3,203 |
Equity Method Investee | Enhanzed Re | Reinsurer Concentration Risk | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance balances recoverable | $ 226,003 | $ 0 |
Reinsurance Balances Recovera_6
Reinsurance Balances Recoverable on Paid and Unpaid Losses - Summary of Provisions for Uncollectible Reinsurance Balances Recoverable by Rating of Reinsurer (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Effects of Reinsurance [Line Items] | |||||||
Gross | $ 2,117,215 | $ 90,800 | $ 2,226,285 | ||||
Allowance for estimated uncollectible reinsurance | 140,488 | $ 138,765 | 137,122 | $ 143,653 | $ 143,327 | $ 147,639 | |
Total | $ 1,976,727 | $ 2,089,163 | |||||
Provisions as a % of Gross | 6.60% | 6.20% | |||||
Reinsurers rated A- or above | |||||||
Effects of Reinsurance [Line Items] | |||||||
Gross | $ 1,385,215 | $ 1,464,529 | |||||
Allowance for estimated uncollectible reinsurance | 61,010 | 60,801 | |||||
Total | $ 1,324,205 | $ 1,403,728 | |||||
Provisions as a % of Gross | 4.40% | 4.20% | |||||
Secured | Reinsurers rated below A- | |||||||
Effects of Reinsurance [Line Items] | |||||||
Gross | $ 599,123 | $ 608,999 | |||||
Allowance for estimated uncollectible reinsurance | 0 | 0 | |||||
Total | $ 599,123 | $ 608,999 | |||||
Provisions as a % of Gross | 0.00% | 0.00% | |||||
Unsecured | Reinsurers rated below A- | |||||||
Effects of Reinsurance [Line Items] | |||||||
Gross | $ 132,877 | $ 152,757 | |||||
Allowance for estimated uncollectible reinsurance | 79,478 | 76,321 | |||||
Total | $ 53,399 | $ 76,436 | |||||
Provisions as a % of Gross | 59.80% | 50.00% |
Reinsurance Balances Recovera_7
Reinsurance Balances Recoverable on Paid and Unpaid Losses Reinsurance Balances Recoverable on Paid and Unpaid Losses - Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for estimated uncollectible reinsurance, beginning of period | $ 138,765 | $ 143,327 | $ 137,122 | $ 147,639 |
Effect of exchange rate movement | 2 | (1,446) | 160 | (1,446) |
Current period change in the allowance | 1,721 | 2,584 | 3,738 | (1,533) |
Write-offs charged against the allowance | 0 | (600) | 0 | (600) |
Recoveries collected | 0 | (212) | (532) | (212) |
Allowance for estimated uncollectible reinsurance, end of period | 140,488 | 143,653 | 140,488 | 143,653 |
Cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance | ||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for estimated uncollectible reinsurance, beginning of period | $ 0 | $ 0 | $ 0 | $ (195) |
Deferred Charge Assets and De_3
Deferred Charge Assets and Deferred Gain Liabilities - Deferred Charge Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Beginning carrying value | $ 360,785,000 | $ 257,832,000 | $ 238,602,000 | $ 272,462,000 |
Recorded during the period | 98,131,000 | 11,746,000 | 229,012,000 | 11,746,000 |
Amortization | (23,765,000) | (11,062,000) | (32,463,000) | (25,692,000) |
Ending carrying value | $ 435,151,000 | $ 258,516,000 | 435,151,000 | $ 258,516,000 |
Impairment loss of deferred charge assets | $ 0 |
Deferred Charge Assets and De_4
Deferred Charge Assets and Deferred Gain Liabilities - Deferred Gain Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Movement Analysis Of Deferred Gain Liabilities [Roll Forward] | ||||
Beginning carrying value | $ 19,251 | $ 12,578 | $ 19,880 | $ 12,875 |
Recorded during the period | 1,562 | 0 | 1,562 | 0 |
Amortization | (754) | (662) | (1,383) | (959) |
Ending carrying value | $ 20,059 | $ 11,916 | $ 20,059 | $ 11,916 |
Losses and Loss Adjustment Ex_3
Losses and Loss Adjustment Expenses - Balance Sheet Summary by Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Outstanding losses | $ 5,699,483 | $ 5,127,849 | |||
IBNR | 7,166,094 | 5,277,503 | |||
ULAE | 430,995 | 385,702 | |||
Fair value adjustments - acquired companies | (133,853) | (143,183) | |||
Fair value adjustments - fair value option | (124,861) | (54,589) | |||
Total | 13,037,858 | $ 11,427,420 | 10,593,282 | $ 9,836,797 | $ 9,868,404 |
Loss and loss adjustment expenses | 10,803,753 | 8,140,362 | |||
Loss and loss adjustment expenses, at fair value | 2,234,105 | 2,452,920 | |||
Legacy Underwriting | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Total | $ 249,096 | 1,358,529 | $ 1,616,527 | $ 1,569,865 | |
Operating Segments | Run-off | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Outstanding losses | 5,604,831 | 4,440,425 | |||
IBNR | 7,022,204 | 4,641,500 | |||
ULAE | 428,626 | 350,600 | |||
Fair value adjustments - acquired companies | 0 | 0 | |||
Fair value adjustments - fair value option | 0 | 0 | |||
Total | 13,055,661 | 9,432,525 | |||
Loss and loss adjustment expenses | 10,696,695 | 6,925,016 | |||
Loss and loss adjustment expenses, at fair value | 2,358,966 | 2,507,509 | |||
Operating Segments | Legacy Underwriting | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Outstanding losses | 94,652 | 687,424 | |||
IBNR | 143,890 | 636,003 | |||
ULAE | 2,369 | 35,102 | |||
Fair value adjustments - acquired companies | 0 | 0 | |||
Fair value adjustments - fair value option | 0 | 0 | |||
Total | 240,911 | 1,358,529 | |||
Loss and loss adjustment expenses | 240,911 | 1,358,529 | |||
Loss and loss adjustment expenses, at fair value | 0 | 0 | |||
Corporate & Other | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Outstanding losses | 0 | 0 | |||
IBNR | 0 | 0 | |||
ULAE | 0 | 0 | |||
Fair value adjustments - acquired companies | (133,853) | (143,183) | |||
Fair value adjustments - fair value option | (124,861) | (54,589) | |||
Total | (258,714) | (197,772) | |||
Loss and loss adjustment expenses | (133,853) | (143,183) | |||
Loss and loss adjustment expenses, at fair value | $ (124,861) | $ (54,589) |
Losses and Loss Adjustment Ex_4
Losses and Loss Adjustment Expenses - Reconciliation of Beginning and Ending Reserves for Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||||||
Balance as of beginning of period | $ 13,037,858 | $ 13,037,858 | $ 11,427,420 | $ 10,593,282 | $ 9,836,797 | $ 9,868,404 | ||
Add: losses and LAE related to SGL No. 1 | 0 | 254,561 | 0 | 0 | ||||
Balance as of beginning of period | 11,427,420 | $ 9,836,797 | 10,847,843 | $ 9,868,404 | ||||
Less: | ||||||||
Reinsurance reserves recoverable | 1,787,725 | 1,787,725 | 1,869,535 | 1,829,620 | 1,902,749 | 1,927,624 | ||
Reinsurance reserves recoverable relating to SGL No 1 | 0 | 90,792 | 0 | 0 | ||||
Total reinsurance reserves recoverable | 1,869,535 | 1,902,749 | 1,920,412 | 1,927,624 | ||||
Less: net deferred charge assets and deferred gain liabilities on retroactive reinsurance | 341,534 | 245,254 | 218,722 | 259,587 | ||||
Net balance as of beginning of period | 9,216,351 | 7,688,794 | 8,708,709 | 7,680,550 | ||||
Net incurred losses and LAE: | ||||||||
Current period | 49,165 | 119,613 | 103,225 | 235,118 | ||||
Prior periods | (9,861) | 67,079 | (119,428) | (5,126) | ||||
Total net incurred losses and LAE | 39,304 | 186,692 | (16,203) | 229,992 | ||||
Net paid losses: | ||||||||
Current period | (5,892) | (11,303) | (12,394) | (15,110) | ||||
Prior periods | (354,667) | (369,984) | (690,697) | (726,003) | ||||
Total net paid losses | (360,559) | (381,287) | (703,091) | (741,113) | ||||
Effect of exchange rate movement | 2,510 | 40,153 | (6,261) | (106,227) | ||||
Assumed business | 1,965,559 | 954,323 | 2,880,011 | 1,425,473 | ||||
Ceded business | (28,124) | 0 | (28,124) | 0 | ||||
Net balance as of June 30 | 10,835,041 | 8,488,675 | 10,835,041 | 8,488,675 | ||||
Plus: reinsurance reserves recoverable | 1,787,725 | 1,858,161 | 1,787,725 | 1,858,161 | ||||
Plus: net deferred charge assets and deferred gain liabilities on retroactive reinsurance | 415,092 | 246,600 | 415,092 | 246,600 | ||||
Balance as of June 30 | 13,037,858 | 10,593,436 | 13,037,858 | 10,593,436 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||
Net paid losses: | ||||||||
Fair value adjustment | 400 | |||||||
Run-off | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||||||
Balance as of beginning of period | 11,467,367 | 8,652,532 | 9,432,525 | 8,683,983 | ||||
Less: | ||||||||
Reinsurance reserves recoverable | 1,759,227 | 1,759,227 | 1,463,001 | |||||
Total reinsurance reserves recoverable | 1,835,796 | 1,568,296 | 1,463,001 | 1,645,352 | ||||
Net balance as of beginning of period | 9,631,571 | 7,084,236 | 7,969,524 | 7,039,334 | ||||
Net incurred losses and LAE: | ||||||||
Current period | 41,409 | 8,086 | 85,570 | 15,935 | ||||
Prior periods | (58,406) | (68,335) | (97,942) | (103,377) | ||||
Total net incurred losses and LAE | (16,997) | (60,249) | (12,372) | (87,442) | ||||
Net paid losses: | ||||||||
Current period | 519 | 202 | (2,756) | (1,038) | ||||
Prior periods | (357,713) | (283,604) | (685,067) | (541,330) | ||||
Total net paid losses | (357,194) | (283,402) | (687,823) | (542,368) | ||||
Effect of exchange rate movement | 5,050 | 30,606 | (7,362) | (109,483) | ||||
Assumed business | 2,063,690 | 966,069 | 3,109,023 | 1,437,219 | ||||
Ceded business | (29,686) | 0 | (29,686) | 0 | ||||
Transfer | 0 | 0 | 955,130 | 0 | ||||
Net balance as of June 30 | 11,296,434 | 7,737,260 | 11,296,434 | 7,737,260 | ||||
Plus: reinsurance reserves recoverable | 1,759,227 | 1,494,652 | 1,759,227 | 1,494,652 | ||||
Balance as of June 30 | 13,055,661 | 9,231,912 | 13,055,661 | 9,231,912 | ||||
Legacy Underwriting | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||||||
Balance as of beginning of period | 249,096 | 1,358,529 | 1,616,527 | 1,569,865 | ||||
Add: losses and LAE related to SGL No. 1 | 0 | 254,561 | 0 | 0 | ||||
Balance as of beginning of period | 249,096 | 1,616,527 | 1,613,090 | 1,569,865 | ||||
Less: | ||||||||
Reinsurance reserves recoverable | 76,270 | 76,270 | 88,957 | 403,399 | 442,905 | 385,613 | ||
Reinsurance reserves recoverable relating to SGL No 1 | 0 | 90,792 | 0 | 0 | ||||
Total reinsurance reserves recoverable | 88,957 | 442,905 | 494,191 | 385,613 | ||||
Net balance as of beginning of period | 160,139 | 1,173,622 | 1,118,899 | 1,182,906 | ||||
Net incurred losses and LAE: | ||||||||
Current period | 7,756 | 111,527 | 17,655 | 219,183 | ||||
Prior periods | 2,525 | (16,145) | (2,896) | (18,270) | ||||
Total net incurred losses and LAE | 10,281 | 95,382 | 14,759 | 200,913 | ||||
Net paid losses: | ||||||||
Current period | (6,411) | (11,505) | (9,638) | (14,072) | ||||
Prior periods | 3,046 | (86,380) | (5,630) | (184,673) | ||||
Total net paid losses | (3,365) | (97,885) | (15,268) | (198,745) | ||||
Effect of exchange rate movement | (2,414) | 9,990 | 1,381 | (3,965) | ||||
Transfer | 0 | 0 | (955,130) | 0 | ||||
Net balance as of June 30 | 164,641 | 1,181,109 | 164,641 | 1,181,109 | ||||
Plus: reinsurance reserves recoverable | 76,270 | 429,847 | 76,270 | 429,847 | ||||
Balance as of June 30 | $ 240,911 | $ 1,610,956 | $ 240,911 | $ 1,610,956 | ||||
Cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance | ||||||||
Less: | ||||||||
Less: cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance | 0 | 0 | 0 | 643 | ||||
Cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance | Run-off | ||||||||
Less: | ||||||||
Less: cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance | 0 | 0 | 0 | 703 | ||||
Cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance | Legacy Underwriting | ||||||||
Less: | ||||||||
Less: cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance | $ 0 | $ 0 | $ 0 | $ 1,346 |
Losses and Loss Adjustment Ex_5
Losses and Loss Adjustment Expenses - Net (Reduction) Increase in Ultimate Losses and Loss Adjustment Expense Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Prior Period | ||||
Net losses paid | $ 354,667 | $ 369,984 | $ 690,697 | $ 726,003 |
Net incurred losses and LAE, prior period | (9,861) | 67,079 | (119,428) | (5,126) |
Current Period | ||||
Net losses paid | 5,892 | 11,303 | 12,394 | 15,110 |
Net incurred losses and LAE, current period | 49,165 | 119,613 | 103,225 | 235,118 |
Total | ||||
Net losses paid | 360,559 | 381,287 | 703,091 | 741,113 |
Net change in case and LAE reserves | (117,483) | (105,465) | (244,617) | (315,233) |
Net change in IBNR reserves | (233,799) | (256,149) | (426,953) | (321,000) |
Increase (reduction) in estimates of net ultimate losses | 9,277 | 19,673 | 31,521 | 104,880 |
Increase (reduction) in provisions for unallocated LAE | (15,993) | 15,460 | (29,134) | 8,591 |
Amortization of deferred charge assets and deferred gain liabilities | 23,011 | 10,400 | 31,080 | 24,733 |
Amortization of fair value adjustments | 5,296 | 7,116 | 8,089 | 15,982 |
Changes in fair value - fair value option | 17,713 | 134,043 | (57,759) | 75,806 |
Total net incurred losses and LAE | 39,304 | 186,692 | (16,203) | 229,992 |
Run-off | ||||
Prior Period | ||||
Net losses paid | 357,713 | 283,604 | 685,067 | 541,330 |
Increase (reduction) in estimates of net ultimate losses | (41,700) | (55,900) | (67,100) | (83,500) |
Net incurred losses and LAE, prior period | (58,406) | (68,335) | (97,942) | (103,377) |
Current Period | ||||
Net losses paid | (519) | (202) | 2,756 | 1,038 |
Net incurred losses and LAE, current period | 41,409 | 8,086 | 85,570 | 15,935 |
Total | ||||
Net losses paid | 357,194 | 283,402 | 687,823 | 542,368 |
Total net incurred losses and LAE | (16,997) | (60,249) | (12,372) | (87,442) |
Legacy Underwriting | ||||
Prior Period | ||||
Net losses paid | (3,046) | 86,380 | 5,630 | 184,673 |
Increase (reduction) in estimates of net ultimate losses | 2,800 | (16,400) | (2,400) | (18,500) |
Net incurred losses and LAE, prior period | 2,525 | (16,145) | (2,896) | (18,270) |
Current Period | ||||
Net losses paid | 6,411 | 11,505 | 9,638 | 14,072 |
Net incurred losses and LAE, current period | 7,756 | 111,527 | 17,655 | 219,183 |
Total | ||||
Net losses paid | 3,365 | 97,885 | 15,268 | 198,745 |
Total net incurred losses and LAE | 10,281 | 95,382 | 14,759 | 200,913 |
Operating Segments | Run-off | ||||
Prior Period | ||||
Net losses paid | 357,713 | 283,604 | 685,067 | 541,330 |
Net change in case and LAE reserves | (129,991) | (75,276) | (247,147) | (251,528) |
Net change in IBNR reserves | (269,418) | (264,238) | (504,983) | (373,275) |
Increase (reduction) in estimates of net ultimate losses | (41,696) | (55,910) | (67,063) | (83,473) |
Increase (reduction) in provisions for unallocated LAE | (16,710) | (12,425) | (30,879) | (19,904) |
Net incurred losses and LAE, prior period | (58,406) | (68,335) | (97,942) | (103,377) |
Current Period | ||||
Net losses paid | (519) | (202) | 2,756 | 1,038 |
Net change in case and LAE reserves | 7,244 | (830) | 5,037 | 842 |
Net change in IBNR reserves | 33,720 | 9,118 | 75,342 | 14,055 |
Increase (reduction) in estimates of net ultimate losses | 40,445 | 8,086 | 83,135 | 15,935 |
Reduction in provisions for unallocated LAE | 964 | 0 | 2,435 | 0 |
Net incurred losses and LAE, current period | 41,409 | 8,086 | 85,570 | 15,935 |
Total | ||||
Net losses paid | 357,194 | 283,402 | 687,823 | 542,368 |
Net change in case and LAE reserves | (122,747) | (76,106) | (242,110) | (250,686) |
Net change in IBNR reserves | (235,698) | (255,120) | (429,641) | (359,220) |
Increase (reduction) in estimates of net ultimate losses | (1,251) | (47,824) | 16,072 | (67,538) |
Increase (reduction) in provisions for unallocated LAE | (15,746) | (12,425) | (28,444) | (19,904) |
Amortization of deferred charge assets and deferred gain liabilities | 0 | 0 | 0 | 0 |
Amortization of fair value adjustments | 0 | 0 | 0 | 0 |
Changes in fair value - fair value option | 0 | 0 | 0 | 0 |
Total net incurred losses and LAE | (16,997) | (60,249) | (12,372) | (87,442) |
Operating Segments | Legacy Underwriting | ||||
Prior Period | ||||
Net losses paid | (3,046) | 86,380 | 5,630 | 184,673 |
Net change in case and LAE reserves | 7,838 | (29,802) | (4,692) | (73,340) |
Net change in IBNR reserves | (1,954) | (72,997) | (3,304) | (129,786) |
Increase (reduction) in estimates of net ultimate losses | 2,838 | (16,419) | (2,366) | (18,453) |
Increase (reduction) in provisions for unallocated LAE | (313) | 274 | (530) | 183 |
Net incurred losses and LAE, prior period | 2,525 | (16,145) | (2,896) | (18,270) |
Current Period | ||||
Net losses paid | 6,411 | 11,505 | 9,638 | 14,072 |
Net change in case and LAE reserves | (2,574) | 443 | 2,185 | 8,793 |
Net change in IBNR reserves | 3,853 | 71,968 | 5,992 | 168,006 |
Increase (reduction) in estimates of net ultimate losses | 7,690 | 83,916 | 17,815 | 190,871 |
Reduction in provisions for unallocated LAE | 66 | 27,611 | (160) | 28,312 |
Net incurred losses and LAE, current period | 7,756 | 111,527 | 17,655 | 219,183 |
Total | ||||
Net losses paid | 3,365 | 97,885 | 15,268 | 198,745 |
Net change in case and LAE reserves | 5,264 | (29,359) | (2,507) | (64,547) |
Net change in IBNR reserves | 1,899 | (1,029) | 2,688 | 38,220 |
Increase (reduction) in estimates of net ultimate losses | 10,528 | 67,497 | 15,449 | 172,418 |
Increase (reduction) in provisions for unallocated LAE | (247) | 27,885 | (690) | 28,495 |
Amortization of deferred charge assets and deferred gain liabilities | 0 | 0 | 0 | 0 |
Amortization of fair value adjustments | 0 | 0 | 0 | 0 |
Changes in fair value - fair value option | 0 | 0 | 0 | 0 |
Total net incurred losses and LAE | 10,281 | 95,382 | 14,759 | 200,913 |
Corporate & Other | ||||
Total | ||||
Net losses paid | 0 | 0 | 0 | 0 |
Net change in case and LAE reserves | 0 | 0 | 0 | 0 |
Net change in IBNR reserves | 0 | 0 | 0 | 0 |
Increase (reduction) in estimates of net ultimate losses | 0 | 0 | 0 | 0 |
Increase (reduction) in provisions for unallocated LAE | 0 | 0 | 0 | 0 |
Amortization of deferred charge assets and deferred gain liabilities | 23,011 | 10,400 | 31,080 | 24,733 |
Amortization of fair value adjustments | 5,296 | 7,116 | 8,089 | 15,982 |
Changes in fair value - fair value option | 17,713 | 134,043 | (57,759) | 75,806 |
Total net incurred losses and LAE | $ 46,020 | $ 151,559 | $ (18,590) | $ 116,521 |
Losses and Loss Adjustment Ex_6
Losses and Loss Adjustment Expenses - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Effects of Reinsurance [Line Items] | ||||
Net incurred losses and LAE, current period | $ 49,165 | $ 119,613 | $ 103,225 | $ 235,118 |
Prior periods | (9,861) | 67,079 | (119,428) | (5,126) |
Run-off | ||||
Effects of Reinsurance [Line Items] | ||||
Net incurred losses and LAE, current period | 41,409 | 8,086 | 85,570 | 15,935 |
Increase (reduction) in estimates of net ultimate losses | (41,700) | (55,900) | (67,100) | (83,500) |
Prior periods | (58,406) | (68,335) | (97,942) | (103,377) |
Run-off | COVID-19 | ||||
Effects of Reinsurance [Line Items] | ||||
Net incurred losses and LAE, current period | 21,600 | 22,000 | ||
Legacy Underwriting | ||||
Effects of Reinsurance [Line Items] | ||||
Net incurred losses and LAE, current period | 7,756 | 111,527 | 17,655 | 219,183 |
Increase (reduction) in estimates of net ultimate losses | 2,800 | (16,400) | (2,400) | (18,500) |
Prior periods | $ 2,525 | (16,145) | $ (2,896) | (18,270) |
Legacy Underwriting | COVID-19 | ||||
Effects of Reinsurance [Line Items] | ||||
Net incurred losses and LAE, current period | $ 1,200 | $ 34,300 |
Defendant Asbestos and Enviro_3
Defendant Asbestos and Environmental Liabilities - Liability for Asbestos and Liability Claims (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||||||
Defendant asbestos and environmental liabilities | $ 677,919 | $ 691,557 | $ 706,329 | $ 808,062 | $ 822,716 | $ 847,685 |
Estimated future expenses | 39,002 | 42,510 | ||||
Fair value adjustments | (251,051) | (262,029) | ||||
Insurance recoveries related to defendant asbestos and environmental liabilities | 305,948 | 310,602 | ||||
Fair value adjustments | (59,969) | (60,950) | ||||
Insurance balances recoverable | 245,979 | 248,010 | 249,652 | 428,277 | 435,613 | 448,855 |
Net liabilities relating to defendant asbestos and environmental exposures | 431,940 | 456,677 | 379,785 | |||
Insurance balance recoverable, allowance for credit loss | 5,822 | $ 5,272 | 4,824 | $ 8,346 | $ 6,985 | $ 3,818 |
Defendant asbestos liabilities | ||||||
Loss Contingencies [Line Items] | ||||||
Defendant asbestos and environmental liabilities | 877,894 | 913,276 | ||||
Defendant environmental liabilities | ||||||
Loss Contingencies [Line Items] | ||||||
Defendant asbestos and environmental liabilities | $ 12,074 | $ 12,572 |
Defendant Asbestos and Enviro_4
Defendant Asbestos and Environmental Liabilities - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Liability for Asbestos and Environmental Claims [Roll Forward] | ||||||||
Balance as of beginning of period | $ 691,557 | $ 822,716 | $ 706,329 | $ 847,685 | ||||
Less: Insurance balances recoverable | 248,010 | 435,613 | 249,652 | 448,855 | ||||
Plus: Cumulative effect of change in accounting principle on the determination of the allowance for estimated uncollectible insurance balances | 5,822 | 8,346 | 5,822 | 8,346 | $ 5,272 | $ 4,824 | $ 6,985 | $ 3,818 |
Net balance as of beginning of period | 456,677 | |||||||
Total net paid claims | (10,916) | (7,495) | (17,224) | (914) | ||||
Amounts recorded in other income: | ||||||||
Reduction in estimates of ultimate net liabilities | (4,450) | (1,978) | (14,002) | (26,893) | ||||
Reduction in estimated future expenses | (745) | (975) | (3,508) | (3,003) | ||||
Amortization of fair value adjustments | 4,504 | 3,130 | 9,997 | 8,598 | ||||
Total other income | (691) | 177 | (7,513) | (21,298) | ||||
Net balance as at June 30 | 431,940 | 379,785 | 431,940 | 379,785 | ||||
Plus: Insurance balances recoverable | 245,979 | 428,277 | 245,979 | 428,277 | ||||
Balance as at June 30 | 677,919 | 808,062 | 677,919 | 808,062 | ||||
Cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance | ||||||||
Liability for Asbestos and Environmental Claims [Roll Forward] | ||||||||
Plus: Cumulative effect of change in accounting principle on the determination of the allowance for estimated uncollectible insurance balances | $ 0 | $ 0 | $ 0 | $ 3,167 | ||||
Cumulative effect of change in accounting principle, adjusted balance | ||||||||
Liability for Asbestos and Environmental Claims [Roll Forward] | ||||||||
Net balance as of beginning of period | $ 443,547 | $ 387,103 | $ 456,677 | $ 401,997 |
Defendant Asbestos and Enviro_5
Defendant Asbestos and Environmental Liabilities Defendant Asbestos and Environmental Liabilities - Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Liability For Asbestos And Environmental Claims, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for estimated uncollectible insurance balances, beginning of period | $ 5,272 | $ 6,985 | $ 4,824 | $ 3,818 |
Current period change in the allowance | 550 | 1,361 | 998 | 1,361 |
Allowance for estimated uncollectible insurance balances, end of period | 5,822 | 8,346 | 5,822 | 8,346 |
Cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance | ||||
Liability For Asbestos And Environmental Claims, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for estimated uncollectible insurance balances, beginning of period | $ 0 | $ 0 | $ 0 | $ 3,167 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Investments: | ||
Short-term and fixed maturity investments | $ 10,703,957 | $ 9,319,179 |
Equities, at fair value | 1,158,219 | 846,795 |
Reinsurance balances recoverable on paid and unpaid losses | (33,607) | (21,427) |
Other assets: | ||
Losses and LAE | 2,234,105 | 2,452,920 |
Other Liabilities: | ||
Other investments | 1,814,593 | 4,244,034 |
Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 10,703,957 | |
InRe Fund | ||
Other Liabilities: | ||
Other investments | 2,400,000 | |
U.S. government and agency | ||
Investments: | ||
Short-term and fixed maturity investments | 789,439 | 951,048 |
U.K. government | ||
Investments: | ||
Short-term and fixed maturity investments | 41,696 | 51,082 |
Corporate | ||
Investments: | ||
Short-term and fixed maturity investments | 6,652,998 | 5,686,732 |
Municipal | ||
Investments: | ||
Short-term and fixed maturity investments | 244,459 | 162,669 |
Residential mortgage-backed | ||
Investments: | ||
Short-term and fixed maturity investments | 572,239 | 553,945 |
Commercial mortgage-backed | ||
Investments: | ||
Short-term and fixed maturity investments | 987,254 | 854,090 |
Asset-backed | ||
Investments: | ||
Short-term and fixed maturity investments | 935,593 | 557,460 |
Publicly traded equity investments | ||
Investments: | ||
Equities, at fair value | 304,701 | 260,767 |
Exchange-traded funds | ||
Investments: | ||
Equities, at fair value | 504,793 | 311,287 |
Private equity funds | ||
Investments: | ||
Equities, at fair value | 348,725 | 274,741 |
Private equity funds | Significant Unobservable Inputs (Level 3) | ||
Investments: | ||
Other investments | 349,000 | |
Recurring | ||
Investments: | ||
Equities, at fair value | 1,158,219 | 846,795 |
Total Investments | 13,686,016 | 14,424,635 |
Cash and cash equivalents | 447,628 | 594,062 |
Other assets: | ||
Losses and LAE | 2,234,105 | 2,452,920 |
Recurring | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 10,703,957 | 9,319,179 |
Recurring | Other investments | ||
Investments: | ||
Other investments | 1,814,593 | 4,244,034 |
Recurring | Reinsurance recoverable | ||
Investments: | ||
Reinsurance balances recoverable on paid and unpaid losses | 492,343 | 520,830 |
Recurring | Derivative instruments, assets | ||
Other assets: | ||
Derivative instruments | 22,154 | 4,133 |
Recurring | Derivative instruments, liabilities | ||
Other Liabilities: | ||
Derivative instruments | 3,131 | 34,142 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Investments: | ||
Equities, at fair value | 767,839 | 540,454 |
Total Investments | 767,839 | 540,454 |
Cash and cash equivalents | 414,623 | 385,790 |
Other assets: | ||
Losses and LAE | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Reinsurance recoverable | ||
Investments: | ||
Reinsurance balances recoverable on paid and unpaid losses | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative instruments, assets | ||
Other assets: | ||
Derivative instruments | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative instruments, liabilities | ||
Other Liabilities: | ||
Derivative instruments | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Investments: | ||
Equities, at fair value | 41,655 | 31,600 |
Total Investments | 11,172,468 | 9,784,399 |
Cash and cash equivalents | 33,005 | 208,272 |
Other assets: | ||
Losses and LAE | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 10,703,957 | 9,319,179 |
Recurring | Significant Other Observable Inputs (Level 2) | Other investments | ||
Investments: | ||
Other investments | 417,609 | 418,993 |
Recurring | Significant Other Observable Inputs (Level 2) | Reinsurance recoverable | ||
Investments: | ||
Reinsurance balances recoverable on paid and unpaid losses | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Derivative instruments, assets | ||
Other assets: | ||
Derivative instruments | 22,154 | 4,133 |
Recurring | Significant Other Observable Inputs (Level 2) | Derivative instruments, liabilities | ||
Other Liabilities: | ||
Derivative instruments | 3,131 | 34,142 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Investments: | ||
Equities, at fair value | 348,725 | 274,741 |
Total Investments | 349,039 | 284,305 |
Cash and cash equivalents | 0 | 0 |
Other assets: | ||
Losses and LAE | 2,234,105 | 2,452,920 |
Recurring | Significant Unobservable Inputs (Level 3) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Other investments | ||
Investments: | ||
Other investments | 314 | 9,564 |
Recurring | Significant Unobservable Inputs (Level 3) | Reinsurance recoverable | ||
Investments: | ||
Reinsurance balances recoverable on paid and unpaid losses | 492,343 | 520,830 |
Recurring | Significant Unobservable Inputs (Level 3) | Derivative instruments, assets | ||
Other assets: | ||
Derivative instruments | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Derivative instruments, liabilities | ||
Other Liabilities: | ||
Derivative instruments | 0 | 0 |
Recurring | Fair Value Based on NAV as Practical Expedient | ||
Investments: | ||
Total Investments | 1,396,670 | 3,815,477 |
Cash and cash equivalents | 0 | 0 |
Recurring | Fair Value Based on NAV as Practical Expedient | Other investments | ||
Investments: | ||
Other investments | 1,396,670 | 3,815,477 |
Recurring | U.S. government and agency | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 789,439 | 951,048 |
Recurring | U.S. government and agency | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | U.S. government and agency | Significant Other Observable Inputs (Level 2) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 789,439 | 951,048 |
Recurring | U.S. government and agency | Significant Unobservable Inputs (Level 3) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | U.K. government | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 41,696 | 51,082 |
Recurring | U.K. government | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | U.K. government | Significant Other Observable Inputs (Level 2) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 41,696 | 51,082 |
Recurring | U.K. government | Significant Unobservable Inputs (Level 3) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Other government | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 480,279 | 502,153 |
Recurring | Other government | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Other government | Significant Other Observable Inputs (Level 2) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 480,279 | 502,153 |
Recurring | Other government | Significant Unobservable Inputs (Level 3) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Corporate | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 6,652,998 | 5,686,732 |
Recurring | Corporate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Corporate | Significant Other Observable Inputs (Level 2) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 6,652,998 | 5,686,732 |
Recurring | Corporate | Significant Unobservable Inputs (Level 3) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Municipal | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 244,459 | 162,669 |
Recurring | Municipal | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Municipal | Significant Other Observable Inputs (Level 2) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 244,459 | 162,669 |
Recurring | Municipal | Significant Unobservable Inputs (Level 3) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Residential mortgage-backed | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 572,239 | 553,945 |
Recurring | Residential mortgage-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Residential mortgage-backed | Significant Other Observable Inputs (Level 2) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 572,239 | 553,945 |
Recurring | Residential mortgage-backed | Significant Unobservable Inputs (Level 3) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Commercial mortgage-backed | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 987,254 | 854,090 |
Recurring | Commercial mortgage-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Commercial mortgage-backed | Significant Other Observable Inputs (Level 2) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 987,254 | 854,090 |
Recurring | Commercial mortgage-backed | Significant Unobservable Inputs (Level 3) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Asset-backed | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 935,593 | 557,460 |
Recurring | Asset-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Asset-backed | Significant Other Observable Inputs (Level 2) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 935,593 | 557,460 |
Recurring | Asset-backed | Significant Unobservable Inputs (Level 3) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Funds held - directly managed | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 9,247 | 14,627 |
Recurring | Funds held - directly managed | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Funds held - directly managed | Significant Other Observable Inputs (Level 2) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 9,247 | 14,627 |
Recurring | Funds held - directly managed | Significant Unobservable Inputs (Level 3) | Short-Term Investments and Fixed Maturities | ||
Investments: | ||
Short-term and fixed maturity investments | 0 | 0 |
Recurring | Publicly traded equity investments | ||
Investments: | ||
Equities, at fair value | 304,701 | 260,767 |
Recurring | Publicly traded equity investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Investments: | ||
Equities, at fair value | 263,046 | 229,167 |
Recurring | Publicly traded equity investments | Significant Other Observable Inputs (Level 2) | ||
Investments: | ||
Equities, at fair value | 41,655 | 31,600 |
Recurring | Publicly traded equity investments | Significant Unobservable Inputs (Level 3) | ||
Investments: | ||
Equities, at fair value | 0 | 0 |
Recurring | Exchange-traded funds | ||
Investments: | ||
Equities, at fair value | 504,793 | 311,287 |
Recurring | Exchange-traded funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Investments: | ||
Equities, at fair value | 504,793 | 311,287 |
Recurring | Exchange-traded funds | Significant Other Observable Inputs (Level 2) | ||
Investments: | ||
Equities, at fair value | 0 | 0 |
Recurring | Exchange-traded funds | Significant Unobservable Inputs (Level 3) | ||
Investments: | ||
Equities, at fair value | 0 | 0 |
Recurring | Private equity funds | ||
Investments: | ||
Equities, at fair value | 348,725 | 274,741 |
Recurring | Private equity funds | Other investments | ||
Investments: | ||
Other investments | 536,368 | 363,103 |
Recurring | Private equity funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Investments: | ||
Equities, at fair value | 0 | 0 |
Recurring | Private equity funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | Private equity funds | Significant Other Observable Inputs (Level 2) | ||
Investments: | ||
Equities, at fair value | 0 | 0 |
Recurring | Private equity funds | Significant Other Observable Inputs (Level 2) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | Private equity funds | Significant Unobservable Inputs (Level 3) | ||
Investments: | ||
Equities, at fair value | 348,725 | 274,741 |
Recurring | Private equity funds | Significant Unobservable Inputs (Level 3) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | Private equity funds | Fair Value Based on NAV as Practical Expedient | Other investments | ||
Investments: | ||
Other investments | 536,368 | 363,103 |
Recurring | Hedge funds (1) | Other investments | ||
Investments: | ||
Other investments | 73,130 | 2,638,339 |
Recurring | Hedge funds (1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | Hedge funds (1) | Significant Other Observable Inputs (Level 2) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | Hedge funds (1) | Significant Unobservable Inputs (Level 3) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | Hedge funds (1) | Fair Value Based on NAV as Practical Expedient | Other investments | ||
Investments: | ||
Other investments | 73,130 | 2,638,339 |
Recurring | Fixed income funds | Other investments | ||
Investments: | ||
Other investments | 603,889 | 552,541 |
Recurring | Fixed income funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | Fixed income funds | Significant Other Observable Inputs (Level 2) | Other investments | ||
Investments: | ||
Other investments | 266,889 | 285,837 |
Recurring | Fixed income funds | Significant Unobservable Inputs (Level 3) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | Fixed income funds | Fair Value Based on NAV as Practical Expedient | Other investments | ||
Investments: | ||
Other investments | 337,000 | 266,704 |
Recurring | Equity funds | Other investments | ||
Investments: | ||
Other investments | 5,617 | 190,767 |
Recurring | Equity funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | Equity funds | Significant Other Observable Inputs (Level 2) | Other investments | ||
Investments: | ||
Other investments | 5,617 | 5,073 |
Recurring | Equity funds | Significant Unobservable Inputs (Level 3) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | Equity funds | Fair Value Based on NAV as Practical Expedient | Other investments | ||
Investments: | ||
Other investments | 0 | 185,694 |
Recurring | CLO equities | Other investments | ||
Investments: | ||
Other investments | 145,103 | 128,083 |
Recurring | CLO equities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | CLO equities | Significant Other Observable Inputs (Level 2) | Other investments | ||
Investments: | ||
Other investments | 145,103 | 128,083 |
Recurring | CLO equities | Significant Unobservable Inputs (Level 3) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | CLO equities | Fair Value Based on NAV as Practical Expedient | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | CLO equity funds | Other investments | ||
Investments: | ||
Other investments | 190,158 | 166,523 |
Recurring | CLO equity funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | CLO equity funds | Significant Other Observable Inputs (Level 2) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | CLO equity funds | Significant Unobservable Inputs (Level 3) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | CLO equity funds | Fair Value Based on NAV as Practical Expedient | Other investments | ||
Investments: | ||
Other investments | 190,158 | 166,523 |
Recurring | Private credit funds | Other investments | ||
Investments: | ||
Other investments | 242,359 | 192,319 |
Recurring | Private credit funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | Private credit funds | Significant Other Observable Inputs (Level 2) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | Private credit funds | Significant Unobservable Inputs (Level 3) | Other investments | ||
Investments: | ||
Other investments | 0 | 9,250 |
Recurring | Private credit funds | Fair Value Based on NAV as Practical Expedient | Other investments | ||
Investments: | ||
Other investments | 242,359 | 183,069 |
Recurring | Other | Other investments | ||
Investments: | ||
Other investments | 17,969 | 12,359 |
Recurring | Other | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | Other | Significant Other Observable Inputs (Level 2) | Other investments | ||
Investments: | ||
Other investments | 0 | 0 |
Recurring | Other | Significant Unobservable Inputs (Level 3) | Other investments | ||
Investments: | ||
Other investments | 314 | 314 |
Recurring | Other | Fair Value Based on NAV as Practical Expedient | Other investments | ||
Investments: | ||
Other investments | 17,655 | 12,045 |
Derivatives qualifying as hedging | Recurring | Derivative instruments, assets | ||
Other assets: | ||
Derivative instruments | 17,583 | 1,169 |
Derivatives qualifying as hedging | Recurring | Derivative instruments, liabilities | ||
Other Liabilities: | ||
Derivative instruments | 2 | 28,947 |
Derivatives qualifying as hedging | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative instruments, assets | ||
Other assets: | ||
Derivative instruments | 0 | 0 |
Derivatives qualifying as hedging | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative instruments, liabilities | ||
Other Liabilities: | ||
Derivative instruments | 0 | 0 |
Derivatives qualifying as hedging | Recurring | Significant Other Observable Inputs (Level 2) | Derivative instruments, assets | ||
Other assets: | ||
Derivative instruments | 17,583 | 1,169 |
Derivatives qualifying as hedging | Recurring | Significant Other Observable Inputs (Level 2) | Derivative instruments, liabilities | ||
Other Liabilities: | ||
Derivative instruments | 2 | 28,947 |
Derivatives qualifying as hedging | Recurring | Significant Unobservable Inputs (Level 3) | Derivative instruments, assets | ||
Other assets: | ||
Derivative instruments | 0 | 0 |
Derivatives qualifying as hedging | Recurring | Significant Unobservable Inputs (Level 3) | Derivative instruments, liabilities | ||
Other Liabilities: | ||
Derivative instruments | 0 | 0 |
Derivatives not qualifying as hedging | Recurring | Derivative instruments, assets | ||
Other assets: | ||
Derivative instruments | 4,571 | 2,964 |
Derivatives not qualifying as hedging | Recurring | Derivative instruments, liabilities | ||
Other Liabilities: | ||
Derivative instruments | 3,129 | 5,195 |
Derivatives not qualifying as hedging | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative instruments, assets | ||
Other assets: | ||
Derivative instruments | 0 | 0 |
Derivatives not qualifying as hedging | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative instruments, liabilities | ||
Other Liabilities: | ||
Derivative instruments | 0 | 0 |
Derivatives not qualifying as hedging | Recurring | Significant Other Observable Inputs (Level 2) | Derivative instruments, assets | ||
Other assets: | ||
Derivative instruments | 4,571 | 2,964 |
Derivatives not qualifying as hedging | Recurring | Significant Other Observable Inputs (Level 2) | Derivative instruments, liabilities | ||
Other Liabilities: | ||
Derivative instruments | 3,129 | 5,195 |
Derivatives not qualifying as hedging | Recurring | Significant Unobservable Inputs (Level 3) | Derivative instruments, assets | ||
Other assets: | ||
Derivative instruments | 0 | 0 |
Derivatives not qualifying as hedging | Recurring | Significant Unobservable Inputs (Level 3) | Derivative instruments, liabilities | ||
Other Liabilities: | ||
Derivative instruments | $ 0 | $ 0 |
Fair Value Measurements - Inves
Fair Value Measurements - Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reinsurance balances recoverable | ||||
Beginning fair value | $ 339,968 | $ 267,326 | $ 284,305 | $ 353,668 |
Purchases | 19,652 | 34 | 76,844 | 38,484 |
Sales and paydowns | (9,250) | 0 | (9,250) | (539) |
Total realized and unrealized gains (losses) | (1,331) | 3,954 | (2,860) | (36,559) |
Transfer out of Level 3 into Level 2 | 0 | 0 | 0 | (83,740) |
Ending fair value | 349,039 | 271,314 | 349,039 | 271,314 |
Privately-held Equities | ||||
Reinsurance balances recoverable | ||||
Beginning fair value | 330,404 | 267,012 | 274,741 | 265,799 |
Purchases | 19,652 | 34 | 76,844 | 1,392 |
Sales and paydowns | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | (1,331) | 3,954 | (2,860) | 3,809 |
Transfer out of Level 3 into Level 2 | 0 | 0 | 0 | 0 |
Ending fair value | 348,725 | 271,000 | 348,725 | 271,000 |
Other investments | ||||
Reinsurance balances recoverable | ||||
Beginning fair value | 9,564 | 314 | 9,564 | 87,869 |
Purchases | 0 | 0 | 0 | 37,092 |
Sales and paydowns | (9,250) | 0 | (9,250) | (539) |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | (40,368) |
Transfer out of Level 3 into Level 2 | 0 | 0 | 0 | (83,740) |
Ending fair value | $ 314 | $ 314 | $ 314 | $ 314 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Techniques (Details) - Private equity funds - Level 3 $ in Millions | Jun. 30, 2021USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments | $ 349 |
Guideline company methodology | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments | $ 227.4 |
Guideline company methodology | Distribution waterfall | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments, measurement input | 12.8 |
Cost as approximation of fair value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments | $ 41 |
Transaction price approximates fair value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments | $ 68.5 |
Transaction price approximates fair value | Discount rate | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments, measurement input | 0.10 |
Transaction price approximates fair value | Discount rate | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments, measurement input | 0.125 |
Transaction price approximates fair value | Discount rate | Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments, measurement input | 0.113 |
Transaction price approximates fair value | Exit multiple | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments, measurement input | 1.2 |
Transaction price approximates fair value | Exit multiple | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments, measurement input | 1.3 |
Transaction price approximates fair value | Exit multiple | Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments, measurement input | 1.3 |
Net Asset Value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments | $ 12.1 |
Net Asset Value | NAV at recent transaction | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments, measurement input | 19.9 |
Fair Value Measurements - Insur
Fair Value Measurements - Insurance Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reinsurance balances recoverable | ||||
Beginning fair value | $ 339,968 | $ 267,326 | $ 284,305 | $ 353,668 |
Assumed business | 19,652 | 34 | 76,844 | 38,484 |
Incurred losses and LAE: | ||||
Change in fair value | (1,331) | 3,954 | (2,860) | (36,559) |
Ending fair value | 349,039 | 271,314 | 349,039 | 271,314 |
Net | ||||
Beginning fair value | 1,786,568 | 1,692,147 | 1,932,090 | 1,925,604 |
Assumed business | 0 | (4,975) | ||
Incurred losses and LAE: | ||||
Increase (reduction) in estimates of ultimate losses | (10,535) | (16,124) | (19,467) | (27,392) |
Reduction in unallocated LAE | (3,264) | (3,299) | (7,659) | (9,712) |
Change in fair value | 17,713 | 134,043 | (57,759) | 75,806 |
Total incurred losses and LAE | 3,914 | 114,620 | (84,885) | 38,702 |
Paid losses | (49,331) | (39,958) | (111,298) | (105,007) |
Effect of exchange rate movements | 611 | 21,321 | 5,855 | (76,144) |
Ending fair value | 1,741,762 | 1,783,155 | 1,741,762 | 1,783,155 |
Liability for losses and LAE | ||||
Liability for losses and LAE | ||||
Beginning fair value | 2,277,382 | 2,345,543 | 2,452,920 | 2,621,122 |
Assumed business | 0 | (4,975) | ||
Incurred losses and LAE: | ||||
Increase (reduction) in estimates of ultimate losses | (4,277) | (21,075) | (12,500) | (35,514) |
Reduction in unallocated LAE | (3,264) | (3,299) | (7,659) | (9,712) |
Change in fair value | 24,174 | 175,787 | (69,909) | 110,983 |
Total incurred losses and LAE | 16,633 | 151,413 | (90,068) | 65,757 |
Paid losses | (60,637) | (62,279) | (134,587) | (143,442) |
Effect of exchange rate movements | 727 | 24,837 | 5,840 | (88,898) |
Ending fair value | 2,234,105 | 2,454,539 | 2,234,105 | 2,454,539 |
Reinsurance balances recoverable | ||||
Reinsurance balances recoverable | ||||
Beginning fair value | 490,814 | 653,396 | 520,830 | 695,518 |
Assumed business | 0 | 0 | ||
Incurred losses and LAE: | ||||
Increase (reduction) in estimates of ultimate losses | 6,258 | (4,951) | 6,967 | (8,122) |
Reduction in unallocated LAE | 0 | 0 | 0 | 0 |
Change in fair value | 6,461 | 41,744 | (12,150) | 35,177 |
Total incurred losses and LAE | 12,719 | 36,793 | (5,183) | 27,055 |
Paid losses | (11,306) | (22,321) | (23,289) | (38,435) |
Effect of exchange rate movements | 116 | 3,516 | (15) | (12,754) |
Ending fair value | 492,343 | 671,384 | 492,343 | 671,384 |
Duration | ||||
Incurred losses and LAE: | ||||
Change in fair value | 4,005 | 3,702 | 5,571 | 7,850 |
Corporate bond yield | ||||
Incurred losses and LAE: | ||||
Change in fair value | 13,708 | 130,341 | (63,330) | 66,249 |
Weighted cost of capital | ||||
Incurred losses and LAE: | ||||
Change in fair value | 0 | 0 | 0 | (5,048) |
Risk cost of capital | ||||
Incurred losses and LAE: | ||||
Change in fair value | $ 0 | $ 0 | $ 0 | $ 6,755 |
Fair Value Measurements - Obser
Fair Value Measurements - Observable and Unobservable Inputs (Details) - Internal Model - Recurring | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Liability for losses and LAE | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average cost of capital | 8.25% | 8.25% |
Duration | 8 years 2 months 15 days | 8 years 2 months 1 day |
Reinsurance balances recoverable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk cost of capital | 5.10% | 5.10% |
Duration | 7 years 10 months 17 days | 8 years 2 months 23 days |
Measurement Input, Entity Credit Risk | Liability for losses and LAE | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit spread for non-performance risk | 0.20% | 0.20% |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, amortized cost | $ 1,364,212 | $ 1,373,259 |
Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, amortized cost | $ 844,269 | 843,447 |
4.50% Senior Notes due 2022 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stated interest rate | 4.50% | |
Debt, amortized cost | $ 349,492 | 349,253 |
Debt, fair value | $ 357,300 | |
4.95% Senior Notes due 2029 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stated interest rate | 4.95% | |
Debt, amortized cost | $ 494,777 | 494,194 |
Debt, fair value | $ 574,100 | |
5.75% Junior Subordinated Notes due 2040 | Junior Subordinated Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stated interest rate | 5.75% | |
Debt, amortized cost | $ 344,943 | $ 344,812 |
Debt, fair value | $ 371,500 |
Variable Interest Entities - Ba
Variable Interest Entities - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | |||||
Cash and cash equivalents | $ 769,359 | $ 901,152 | |||
Restricted cash and cash equivalents | 356,899 | 471,964 | |||
Cash, cash equivalents and restricted cash | 2,128,795 | 1,373,116 | $ 988,521 | $ 971,349 | |
Securities owned, at fair value | 14,622,446 | 15,256,930 | |||
Other assets: | |||||
Total other assets | 1,154,460 | 925,533 | |||
TOTAL ASSETS | 24,621,331 | 21,647,284 | |||
LIABILITIES | |||||
Other liabilities | 886,056 | 942,905 | |||
TOTAL LIABILITIES | 17,243,939 | 14,593,844 | |||
InRe Fund | |||||
ASSETS | |||||
Cash and cash equivalents | 122,701 | ||||
Restricted cash and cash equivalents | 879,836 | ||||
Cash, cash equivalents and restricted cash | 1,002,537 | $ 0 | 0 | $ 0 | |
Securities owned, at fair value | 1,393,134 | 0 | |||
Other assets: | |||||
Derivative assets, at fair value | 477,645 | ||||
Due from brokers | 34,835 | ||||
Receivable from investments sold | 4,571 | ||||
Other assets | 800 | ||||
Total other assets | 517,851 | 0 | |||
TOTAL ASSETS | 2,913,522 | 0 | |||
LIABILITIES | |||||
Derivative liabilities, at fair value | 302,100 | ||||
Due to brokers | 172,821 | ||||
Securities sold, but not yet purchased, at fair value | 135,950 | ||||
Payable for investments purchased | 61,439 | ||||
Other liabilities | 21,500 | ||||
TOTAL LIABILITIES | $ 693,810 | $ 0 |
Variable Interest Entities - Ca
Variable Interest Entities - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
OPERATING ACTIVITIES: | ||||
NET EARNINGS | $ 389,306 | $ 787,486 | $ 592,219 | $ 246,868 |
Adjustments to reconcile net earnings to cash flows: | ||||
Sales of trading securities | 3,267,170 | 2,165,843 | ||
Purchases of trading securities | (2,031,855) | (1,175,992) | ||
Payments to cover securities sold short | (685,140) | 0 | ||
Proceeds from securities sold short | 244,829 | 0 | ||
Net payments for derivative contracts | (77,773) | 0 | ||
Changes in: | ||||
Other operating assets and liabilities | (255,008) | 11,953 | ||
INVESTING ACTIVITIES: | ||||
Consolidation of the InRe Fund opening cash and restricted cash balances (Note 11) | 574,081 | 0 | ||
FINANCING ACTIVITIES: | ||||
Enstar capital withdrawals | (61,400) | |||
Net cash flows provided by (used in) financing activities | (39,917) | 319,624 | ||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 532,479 | 18,328 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,373,116 | 971,349 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 2,128,795 | 988,521 | 2,128,795 | 988,521 |
InRe Fund | ||||
OPERATING ACTIVITIES: | ||||
NET EARNINGS | 196,558 | 196,558 | ||
Adjustments to reconcile net earnings to cash flows: | ||||
Realized gains on sales of investments and derivatives | (321,705) | (321,705) | ||
Unrealized losses on investments and derivatives | 104,975 | 104,975 | ||
Sales of trading securities | 2,029,295 | 2,029,295 | ||
Purchases of trading securities | (946,950) | (946,950) | ||
Payments to cover securities sold short | (685,140) | (685,140) | ||
Proceeds from securities sold short | 244,829 | 244,829 | ||
Net payments for derivative contracts | (77,773) | (77,773) | ||
Changes in: | ||||
Due from brokers, excluding restricted cash | 641,839 | 641,839 | ||
Receivable from investments sold | 456,996 | 456,996 | ||
Due to brokers | (353,574) | (353,574) | ||
Payable for investments purchased | (79,729) | (79,729) | ||
Performance fee payable | 19,250 | 19,250 | ||
Other operating assets and liabilities | (415) | (415) | ||
Subtotal | 684,367 | 684,367 | ||
Net cash flows provided by operating activities | 1,228,456 | 1,228,456 | ||
INVESTING ACTIVITIES: | ||||
Consolidation of the InRe Fund opening cash and restricted cash balances (Note 11) | 574,081 | 574,081 | ||
Net cash flows used in investing activities | 574,081 | 574,081 | ||
FINANCING ACTIVITIES: | ||||
Enstar capital withdrawals | (800,000) | (800,000) | ||
Net cash flows provided by (used in) financing activities | (800,000) | (800,000) | ||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,002,537 | 1,002,537 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 1,002,537 | $ 0 | $ 1,002,537 | $ 0 |
Variable Interest Entities - As
Variable Interest Entities - Asset Types (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fixed maturity investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | $ 4,088,402 | $ 4,594,892 |
Fixed maturity investments | Corporate bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 2,884,794 | $ 3,227,726 |
InRe Fund | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 198,793 | |
InRe Fund | Convertible bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 194,275 | |
InRe Fund | Corporate bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 4,518 | |
InRe Fund | Fixed maturity investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 198,793 | |
InRe Fund | Fixed maturity investments | Convertible bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 194,275 | |
InRe Fund | Fixed maturity investments | Corporate bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | $ 4,518 |
Variable Interest Entities - Cr
Variable Interest Entities - Credit Rating (Details) - InRe Fund $ in Thousands | 3 Months Ended |
Jun. 30, 2021USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | |
Amortized Cost | $ 149,118 |
Debt securities, trading | 198,793 |
Non- Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | 2,576 |
AAA Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | 0 |
AA Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | 4,466 |
A Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | 1,942 |
BBB Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | 0 |
Not Rated | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | $ 189,809 |
Trading Securities | Portfolio Concentration Risk | |
Debt and Equity Securities, FV-NI [Line Items] | |
% of Total Investments | 100.00% |
Trading Securities | Credit Rating Concentration Risk | Non- Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
% of Total Investments | 1.30% |
Trading Securities | Credit Rating Concentration Risk | AAA Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
% of Total Investments | 0.00% |
Trading Securities | Credit Rating Concentration Risk | AA Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
% of Total Investments | 2.20% |
Trading Securities | Credit Rating Concentration Risk | A Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
% of Total Investments | 1.00% |
Trading Securities | Credit Rating Concentration Risk | BBB Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
% of Total Investments | 0.00% |
Trading Securities | Credit Rating Concentration Risk | Not Rated | |
Debt and Equity Securities, FV-NI [Line Items] | |
% of Total Investments | 95.50% |
Convertible bonds | |
Debt and Equity Securities, FV-NI [Line Items] | |
Amortized Cost | $ 144,683 |
Debt securities, trading | 194,275 |
Convertible bonds | Non- Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | 0 |
Convertible bonds | AAA Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | 0 |
Convertible bonds | AA Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | 4,466 |
Convertible bonds | A Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | 0 |
Convertible bonds | BBB Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | 0 |
Convertible bonds | Not Rated | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | $ 189,809 |
Convertible bonds | Trading Securities | Portfolio Concentration Risk | |
Debt and Equity Securities, FV-NI [Line Items] | |
% of Total Investments | 98.00% |
Corporate bonds | |
Debt and Equity Securities, FV-NI [Line Items] | |
Amortized Cost | $ 4,435 |
Debt securities, trading | 4,518 |
Corporate bonds | Non- Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | 2,576 |
Corporate bonds | AAA Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | 0 |
Corporate bonds | AA Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | 0 |
Corporate bonds | A Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | 1,942 |
Corporate bonds | BBB Rated | Investment Grade | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | 0 |
Corporate bonds | Not Rated | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt securities, trading | $ 0 |
Corporate bonds | Trading Securities | Portfolio Concentration Risk | |
Debt and Equity Securities, FV-NI [Line Items] | |
% of Total Investments | 2.00% |
Variable Interest Entities - Eq
Variable Interest Entities - Equities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equities, at fair value | $ 1,158,219 | $ 846,795 |
InRe Fund | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equities, at fair value | 1,135,334 | |
Publicly traded equity investments in common and preferred stocks | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equities, at fair value | 304,701 | 260,767 |
Publicly traded equity investments in common and preferred stocks | InRe Fund | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equities, at fair value | 1,079,679 | |
Exchange-traded funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equities, at fair value | 504,793 | $ 311,287 |
Exchange-traded funds | InRe Fund | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equities, at fair value | $ 55,655 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | $ 1,814,593 | $ 4,244,034 |
InRe Fund | Convertible bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized gain | 16,927 | |
InRe Fund | Warrants and rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | $ 59,000 |
Variable Interest Entities - In
Variable Interest Entities - Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Gross investment income | $ 99,585 | $ 97,426 | $ 165,289 | $ 176,635 | |
Net investment expense | (3,267) | (2,983) | (6,882) | (7,478) | |
Net investment income | [1] | 76,147 | 94,443 | 138,236 | 169,157 |
InRe Fund | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Gross investment income | 2,595 | 2,595 | |||
Net investment expense | (22,766) | (22,766) | |||
Net investment income | (20,171) | 0 | (20,171) | 0 | |
Fixed maturity investments | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Gross investment income | 46,996 | $ 52,837 | 92,477 | $ 106,279 | |
Fixed maturity investments | InRe Fund | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Gross investment income | 456 | 456 | |||
Equity and other investments | InRe Fund | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Gross investment income | $ 2,139 | $ 2,139 | |||
[1] | Includes amounts attributed to the InRe Fund, refer to Note 11 - "Variable Interest Entities" for additional information. |
Variable Interest Entities - Ne
Variable Interest Entities - Net Realized and Unrealized Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Net realized gains on sale: | |||||
Derivatives | $ (259) | $ 0 | $ (80) | $ 0 | |
Total net realized gains on sales | 340,202 | 58,195 | 346,341 | 61,406 | |
Net unrealized gains (losses): | |||||
Derivatives | (51) | 0 | 84 | 0 | |
Net realized and unrealized gains | [1] | 405,220 | 967,608 | 384,432 | 338,547 |
InRe Fund | |||||
Net realized gains on sale: | |||||
Fixed maturity securities | 54,683 | 0 | 54,683 | 0 | |
Equity investments | 105,777 | 0 | 105,777 | 0 | |
Derivatives | 161,245 | 0 | 161,245 | 0 | |
Total net realized gains on sales | 321,705 | 0 | 321,705 | 0 | |
Net unrealized gains (losses): | |||||
Fixed maturity securities | (19,803) | 0 | (19,803) | 0 | |
Equity investments | 66,620 | 0 | 66,620 | 0 | |
Other investments | 2,211 | 0 | 2,211 | 0 | |
Derivatives | (154,003) | 0 | (154,003) | 0 | |
Change in net asset value of the investment in the InRe Fund | 0 | 365,054 | 76,607 | 320,196 | |
Total net unrealized gains (losses) | (104,975) | 365,054 | (28,368) | 320,196 | |
Net realized and unrealized gains | $ 216,730 | $ 365,054 | $ 293,337 | $ 320,196 | |
[1] | Includes amounts attributed to the InRe Fund, refer to Note 11 - "Variable Interest Entities" for additional information. |
Variable Interest Entities - Fa
Variable Interest Entities - Fair Value and Notional Amounts (Details) - InRe Fund $ in Thousands | Jun. 30, 2021USD ($) |
Derivative [Line Items] | |
Derivative assets, at fair value | $ 477,645 |
Derivative assets, notional value | 1,638,262 |
Derivative liabilities, at fair value | 302,100 |
Derivative liability, notional value | 3,374,053 |
Option contracts | |
Derivative [Line Items] | |
Derivative assets, at fair value | 431,211 |
Derivative assets, notional value | 1,345,380 |
Derivative liabilities, at fair value | 256,801 |
Derivative liability, notional value | 2,140,967 |
Forward contracts | |
Derivative [Line Items] | |
Derivative assets, at fair value | 46,434 |
Derivative assets, notional value | 292,882 |
Derivative liabilities, at fair value | 45,299 |
Derivative liability, notional value | $ 1,233,086 |
Variable Interest Entities - _2
Variable Interest Entities - Income Statement Impact (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative [Line Items] | ||||
Net gain (loss) | $ (938) | $ 129 | $ (1,345) | $ 129 |
InRe Fund | ||||
Derivative [Line Items] | ||||
Net gain (loss) | 7,242 | 7,242 | ||
Option contracts | InRe Fund | ||||
Derivative [Line Items] | ||||
Net gain (loss) | 82 | 82 | ||
Forward contracts | InRe Fund | ||||
Derivative [Line Items] | ||||
Net gain (loss) | $ 7,160 | $ 7,160 |
Variable Interest Entities - Of
Variable Interest Entities - Offsetting (Details) - InRe Fund $ in Thousands | Jun. 30, 2021USD ($) |
Offsetting Derivative Assets [Abstract] | |
Gross Amounts of Recognized Derivative Assets | $ 477,645 |
Gross Derivative Liability Amounts Offset in the Balance Sheet | 0 |
Net Amounts of Derivative Assets Presented in the Balance Sheet | 477,645 |
Gross Amounts of Derivative Assets Not Offset in the Balance Sheet | (300,095) |
Cash Collateral Pledged | 0 |
Net Asset Amount | 177,550 |
Offsetting Derivative Liabilities [Abstract] | |
Gross Amounts of Recognized Derivative Liabilities | (302,100) |
Gross Derivative Asset Amounts Offset in the Balance Sheet | 0 |
Derivative Liability | (302,100) |
Gross Amounts of Derivative Liabilities Not Offset in the Balance Sheet | 301,020 |
Cash Collateral Pledged | 1,080 |
Net Amount | 0 |
UBS AG | |
Offsetting Derivative Assets [Abstract] | |
Gross Amounts of Recognized Derivative Assets | 197,794 |
Gross Derivative Liability Amounts Offset in the Balance Sheet | 0 |
Net Amounts of Derivative Assets Presented in the Balance Sheet | 197,794 |
Gross Amounts of Derivative Assets Not Offset in the Balance Sheet | (129,558) |
Cash Collateral Pledged | 0 |
Net Asset Amount | 68,236 |
Offsetting Derivative Liabilities [Abstract] | |
Gross Amounts of Recognized Derivative Liabilities | (129,558) |
Gross Derivative Asset Amounts Offset in the Balance Sheet | 0 |
Derivative Liability | (129,558) |
Gross Amounts of Derivative Liabilities Not Offset in the Balance Sheet | 129,558 |
Cash Collateral Pledged | 0 |
Net Amount | 0 |
Morgan Stanley | |
Offsetting Derivative Assets [Abstract] | |
Gross Amounts of Recognized Derivative Assets | 54,285 |
Gross Derivative Liability Amounts Offset in the Balance Sheet | 0 |
Net Amounts of Derivative Assets Presented in the Balance Sheet | 54,285 |
Gross Amounts of Derivative Assets Not Offset in the Balance Sheet | (43,092) |
Cash Collateral Pledged | 0 |
Net Asset Amount | 11,193 |
Offsetting Derivative Liabilities [Abstract] | |
Gross Amounts of Recognized Derivative Liabilities | (43,092) |
Gross Derivative Asset Amounts Offset in the Balance Sheet | 0 |
Derivative Liability | (43,092) |
Gross Amounts of Derivative Liabilities Not Offset in the Balance Sheet | 43,092 |
Cash Collateral Pledged | 0 |
Net Amount | 0 |
Goldman Sachs | |
Offsetting Derivative Assets [Abstract] | |
Gross Amounts of Recognized Derivative Assets | 34,319 |
Gross Derivative Liability Amounts Offset in the Balance Sheet | 0 |
Net Amounts of Derivative Assets Presented in the Balance Sheet | 34,319 |
Gross Amounts of Derivative Assets Not Offset in the Balance Sheet | (15,999) |
Cash Collateral Pledged | 0 |
Net Asset Amount | 18,320 |
Offsetting Derivative Liabilities [Abstract] | |
Gross Amounts of Recognized Derivative Liabilities | (15,999) |
Gross Derivative Asset Amounts Offset in the Balance Sheet | 0 |
Derivative Liability | (15,999) |
Gross Amounts of Derivative Liabilities Not Offset in the Balance Sheet | 15,999 |
Cash Collateral Pledged | 0 |
Net Amount | 0 |
Merrill Lynch | |
Offsetting Derivative Assets [Abstract] | |
Gross Amounts of Recognized Derivative Assets | 168,882 |
Gross Derivative Liability Amounts Offset in the Balance Sheet | 0 |
Net Amounts of Derivative Assets Presented in the Balance Sheet | 168,882 |
Gross Amounts of Derivative Assets Not Offset in the Balance Sheet | (94,345) |
Cash Collateral Pledged | 0 |
Net Asset Amount | 74,537 |
Offsetting Derivative Liabilities [Abstract] | |
Gross Amounts of Recognized Derivative Liabilities | (94,345) |
Gross Derivative Asset Amounts Offset in the Balance Sheet | 0 |
Derivative Liability | (94,345) |
Gross Amounts of Derivative Liabilities Not Offset in the Balance Sheet | 94,345 |
Cash Collateral Pledged | 0 |
Net Amount | 0 |
JP Morgan | |
Offsetting Derivative Assets [Abstract] | |
Gross Amounts of Recognized Derivative Assets | 22,305 |
Gross Derivative Liability Amounts Offset in the Balance Sheet | 0 |
Net Amounts of Derivative Assets Presented in the Balance Sheet | 22,305 |
Gross Amounts of Derivative Assets Not Offset in the Balance Sheet | (17,041) |
Cash Collateral Pledged | 0 |
Net Asset Amount | 5,264 |
Offsetting Derivative Liabilities [Abstract] | |
Gross Amounts of Recognized Derivative Liabilities | (17,041) |
Gross Derivative Asset Amounts Offset in the Balance Sheet | 0 |
Derivative Liability | (17,041) |
Gross Amounts of Derivative Liabilities Not Offset in the Balance Sheet | 17,041 |
Cash Collateral Pledged | 0 |
Net Amount | 0 |
Other | |
Offsetting Derivative Assets [Abstract] | |
Gross Amounts of Recognized Derivative Assets | 60 |
Gross Derivative Liability Amounts Offset in the Balance Sheet | 0 |
Net Amounts of Derivative Assets Presented in the Balance Sheet | 60 |
Gross Amounts of Derivative Assets Not Offset in the Balance Sheet | (60) |
Cash Collateral Pledged | 0 |
Net Asset Amount | 0 |
Offsetting Derivative Liabilities [Abstract] | |
Gross Amounts of Recognized Derivative Liabilities | (2,065) |
Gross Derivative Asset Amounts Offset in the Balance Sheet | 0 |
Derivative Liability | (2,065) |
Gross Amounts of Derivative Liabilities Not Offset in the Balance Sheet | 985 |
Cash Collateral Pledged | 1,080 |
Net Amount | 0 |
Barclays Bank Plc | |
Offsetting Derivative Liabilities [Abstract] | |
Cash Collateral Pledged | 68,600 |
HSBC Bank Plc | |
Offsetting Derivative Liabilities [Abstract] | |
Cash Collateral Pledged | 1,000 |
Goldman Sachs, Not Presented In Table | |
Offsetting Derivative Liabilities [Abstract] | |
Cash Collateral Pledged | 520,000 |
Merrill Lynch, Not Presented In Table | |
Offsetting Derivative Liabilities [Abstract] | |
Cash Collateral Pledged | 96,900 |
Morgan Stanley, Not Presented In Table | |
Offsetting Derivative Liabilities [Abstract] | |
Cash Collateral Pledged | 121,400 |
UBS AG, Not Presented In Table | |
Offsetting Derivative Liabilities [Abstract] | |
Cash Collateral Pledged | $ 70,700 |
Variable Interest Entities - _3
Variable Interest Entities - Fair Value Heirarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | $ 13,686,016 | $ 14,424,635 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 767,839 | 540,454 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 11,172,468 | 9,784,399 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 349,039 | $ 284,305 |
InRe Fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 477,645 | |
Derivative liabilities, at fair value | 302,100 | |
InRe Fund | Option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 431,211 | |
Derivative liabilities, at fair value | 256,801 | |
InRe Fund | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 46,434 | |
Derivative liabilities, at fair value | 45,299 | |
InRe Fund | Significant Unobservable Inputs (Level 3) | Convertible bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 46,927 | |
InRe Fund | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 1,393,134 | |
Derivative assets, at fair value | 477,645 | |
Total securities sold, but not yet purchased | 135,950 | |
Derivative liabilities, at fair value | 302,100 | |
InRe Fund | Recurring | Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 1,135,334 | |
Total securities sold, but not yet purchased | 89,427 | |
InRe Fund | Recurring | Warrants and rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 59,007 | |
InRe Fund | Recurring | Convertible bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 194,275 | |
InRe Fund | Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 4,518 | |
Total securities sold, but not yet purchased | 46,523 | |
InRe Fund | Recurring | Option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 431,211 | |
Derivative liabilities, at fair value | 256,801 | |
InRe Fund | Recurring | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 46,434 | |
Derivative liabilities, at fair value | 45,299 | |
InRe Fund | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 1,135,334 | |
Derivative assets, at fair value | 0 | |
Total securities sold, but not yet purchased | 89,427 | |
Derivative liabilities, at fair value | 7,003 | |
InRe Fund | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 1,135,334 | |
Total securities sold, but not yet purchased | 89,427 | |
InRe Fund | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Warrants and rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 0 | |
InRe Fund | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Convertible bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 0 | |
InRe Fund | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 0 | |
Total securities sold, but not yet purchased | 0 | |
InRe Fund | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 0 | |
Derivative liabilities, at fair value | 0 | |
InRe Fund | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 0 | |
Derivative liabilities, at fair value | 7,003 | |
InRe Fund | Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 210,873 | |
Derivative assets, at fair value | 477,645 | |
Total securities sold, but not yet purchased | 46,523 | |
Derivative liabilities, at fair value | 295,097 | |
InRe Fund | Recurring | Significant Other Observable Inputs (Level 2) | Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 0 | |
Total securities sold, but not yet purchased | 0 | |
InRe Fund | Recurring | Significant Other Observable Inputs (Level 2) | Warrants and rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 59,007 | |
InRe Fund | Recurring | Significant Other Observable Inputs (Level 2) | Convertible bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 147,348 | |
InRe Fund | Recurring | Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 4,518 | |
Total securities sold, but not yet purchased | 46,523 | |
InRe Fund | Recurring | Significant Other Observable Inputs (Level 2) | Option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 431,211 | |
Derivative liabilities, at fair value | 256,801 | |
InRe Fund | Recurring | Significant Other Observable Inputs (Level 2) | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 46,434 | |
Derivative liabilities, at fair value | 38,296 | |
InRe Fund | Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 46,927 | |
Derivative assets, at fair value | 0 | |
Total securities sold, but not yet purchased | 0 | |
Derivative liabilities, at fair value | 0 | |
InRe Fund | Recurring | Significant Unobservable Inputs (Level 3) | Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 0 | |
Total securities sold, but not yet purchased | 0 | |
InRe Fund | Recurring | Significant Unobservable Inputs (Level 3) | Warrants and rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 0 | |
InRe Fund | Recurring | Significant Unobservable Inputs (Level 3) | Convertible bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 46,927 | |
InRe Fund | Recurring | Significant Unobservable Inputs (Level 3) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities owned | 0 | |
Total securities sold, but not yet purchased | 0 | |
InRe Fund | Recurring | Significant Unobservable Inputs (Level 3) | Option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 0 | |
Derivative liabilities, at fair value | 0 | |
InRe Fund | Recurring | Significant Unobservable Inputs (Level 3) | Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 0 | |
Derivative liabilities, at fair value | $ 0 |
Variable Interest Entities - Qu
Variable Interest Entities - Quantitative Information (Details) - InRe Fund - Significant Unobservable Inputs (Level 3) - Convertible bonds $ in Thousands | 3 Months Ended |
Jun. 30, 2021USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Total fair value | $ 46,927 |
Unrealized gain | $ 16,927 |
Variable Interest Entities - No
Variable Interest Entities - Nonconsolidated VIEs (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Fair Value | $ 1,196,228 | $ 3,515,103 |
Unfunded Commitments | 936,258 | 922,636 |
Maximum Exposure to Loss | 2,132,486 | 4,437,739 |
Publicly traded equity investments in common and preferred stocks | ||
Variable Interest Entity [Line Items] | ||
Fair Value | 60,911 | 54,248 |
Unfunded Commitments | 0 | 0 |
Maximum Exposure to Loss | 60,911 | 54,248 |
Other investments | ||
Variable Interest Entity [Line Items] | ||
Fair Value | 1,135,317 | 3,460,855 |
Unfunded Commitments | 936,258 | 922,636 |
Maximum Exposure to Loss | 2,071,575 | 4,383,491 |
Hedge funds | ||
Variable Interest Entity [Line Items] | ||
Fair Value | 73,130 | 2,638,339 |
Unfunded Commitments | 0 | 0 |
Maximum Exposure to Loss | 73,130 | 2,638,339 |
Fixed income funds | ||
Variable Interest Entity [Line Items] | ||
Fair Value | 132,229 | 98,874 |
Unfunded Commitments | 44,263 | 16,538 |
Maximum Exposure to Loss | 176,492 | 115,412 |
Privately-held Equities | ||
Variable Interest Entity [Line Items] | ||
Fair Value | 479,470 | 361,691 |
Unfunded Commitments | 781,162 | 761,969 |
Maximum Exposure to Loss | 1,260,632 | 1,123,660 |
CLO equity funds | ||
Variable Interest Entity [Line Items] | ||
Fair Value | 190,158 | 166,524 |
Unfunded Commitments | 0 | 0 |
Maximum Exposure to Loss | 190,158 | 166,524 |
Private credit funds | ||
Variable Interest Entity [Line Items] | ||
Fair Value | 242,359 | 183,069 |
Unfunded Commitments | 72,289 | 126,455 |
Maximum Exposure to Loss | 314,648 | 309,524 |
Other | ||
Variable Interest Entity [Line Items] | ||
Fair Value | 17,971 | 12,358 |
Unfunded Commitments | 38,544 | 17,674 |
Maximum Exposure to Loss | $ 56,515 | $ 30,032 |
Premiums Written and Earned - S
Premiums Written and Earned - Schedule of Net Premiums Written and Earned (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Effects of Reinsurance [Line Items] | ||||
Gross, premiums written | $ 21,516 | $ 139,392 | $ 71,273 | $ 349,153 |
Ceded, premiums written | (4,341) | (18,616) | (38,133) | (73,918) |
Net, premiums written | 17,175 | 120,776 | 33,140 | 275,235 |
Gross, premiums earned | 99,624 | 181,630 | 241,889 | 376,751 |
Ceded premium earned | (39,980) | (38,759) | (89,369) | (74,529) |
Premiums Earned | 59,644 | 142,871 | 152,520 | 302,222 |
Operating Segments | Run-off | ||||
Effects of Reinsurance [Line Items] | ||||
Gross, premiums written | 8,001 | (2,155) | 30,184 | (1,828) |
Ceded, premiums written | 2,160 | (1,048) | (15,525) | 801 |
Net, premiums written | 10,161 | (3,203) | 14,659 | (1,027) |
Gross, premiums earned | 61,564 | 14,395 | 155,770 | 32,473 |
Ceded premium earned | (19,160) | (3,878) | (40,530) | (5,926) |
Premiums Earned | 42,404 | 10,517 | 115,240 | 26,547 |
Operating Segments | Legacy Underwriting | ||||
Effects of Reinsurance [Line Items] | ||||
Gross, premiums written | 13,515 | 141,547 | 41,089 | 350,981 |
Ceded, premiums written | (6,501) | (17,568) | (22,608) | (74,719) |
Net, premiums written | 7,014 | 123,979 | 18,481 | 276,262 |
Gross, premiums earned | 38,060 | 167,235 | 86,119 | 344,278 |
Ceded premium earned | (20,820) | (34,881) | (48,839) | (68,603) |
Premiums Earned | $ 17,240 | $ 132,354 | $ 37,280 | $ 275,675 |
Premiums Written and Earned - N
Premiums Written and Earned - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Insurance [Abstract] | ||
Increase (decrease) in gross premiums written | $ (117.9) | $ (277.9) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | |
Run-off | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 63 | $ 63 | ||
Legacy Underwriting | ||||
Goodwill [Line Items] | ||||
Impairment loss | $ 8 | |||
Intangible asset amortization | $ 0.5 | $ 1 |
Debt Obligations and Credit F_3
Debt Obligations and Credit Facilities - Amounts Outstanding and Accrued Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Debt, amortized cost | $ 1,364,212 | $ 1,364,212 | $ 1,373,259 | ||
Interest expense on debt obligations | 15,896 | $ 13,675 | 31,803 | $ 26,870 | |
Amortization of debt issuance costs | 349 | 343 | 605 | 563 | |
Funds withheld balances and other | 56 | 0 | 72 | 0 | |
Total interest expense | 16,301 | $ 14,018 | 32,480 | $ 27,433 | |
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt, amortized cost | $ 844,269 | $ 844,269 | 843,447 | ||
Senior Notes | 4.50% Senior Notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 4.50% | 4.50% | |||
Term | 5 years | ||||
Debt, amortized cost | $ 349,492 | $ 349,492 | 349,253 | ||
Senior Notes | 4.95% Senior Notes due 2029 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 4.95% | 4.95% | |||
Term | 10 years | ||||
Debt, amortized cost | $ 494,777 | $ 494,777 | 494,194 | ||
Junior Subordinated Debt | 5.75% Junior Subordinated Notes due 2040 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 5.75% | 5.75% | |||
Term | 20 years | ||||
Debt, amortized cost | $ 344,943 | $ 344,943 | 344,812 | ||
Line of Credit | EGL Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Term | 5 years | ||||
Debt, amortized cost | $ 175,000 | $ 175,000 | $ 185,000 |
Debt Obligations and Credit F_4
Debt Obligations and Credit Facilities - Additional Information (Details) | Sep. 01, 2025 | Aug. 05, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2021GBP (£) | Jun. 03, 2021USD ($) | May 24, 2021USD ($) | May 06, 2021USD ($) | Dec. 31, 2020USD ($) | Aug. 26, 2020USD ($) | May 28, 2019USD ($) | Mar. 10, 2017USD ($) |
Line of Credit Facility [Line Items] | |||||||||||
Maturity, remainder of 2021 | $ 0 | ||||||||||
Maturity, 2022 | 350,000,000 | ||||||||||
Maturity, 2023 | 175,000,000 | ||||||||||
Maturity, 2024 | 0 | ||||||||||
Maturity, 2025 | 0 | ||||||||||
Maturity, thereafter | 850,000,000 | ||||||||||
Cash and investments | $ 581,000,000 | $ 260,900,000 | |||||||||
Senior Notes | 4.50% Senior Notes due 2022 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Stated interest rate | 4.50% | 4.50% | |||||||||
Issuance costs | $ 500,000 | 700,000 | $ 2,900,000 | ||||||||
Senior Notes | 4.95% Senior Notes due 2029 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Stated interest rate | 4.95% | 4.95% | |||||||||
Issuance costs | $ 5,200,000 | 5,800,000 | $ 6,800,000 | ||||||||
Junior Subordinated Debt | 5.75% Junior Subordinated Notes due 2040 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Stated interest rate | 5.75% | 5.75% | |||||||||
Issuance costs | $ 5,100,000 | 5,200,000 | $ 5,200,000 | ||||||||
Junior Subordinated Debt | 5.75% Junior Subordinated Notes due 2040 | Scenario, Forecast | Treasury Rate | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on interest rate | 5.468% | ||||||||||
Line of Credit | 2018 EGL Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | 600,000,000 | ||||||||||
Optional increase in borrowing capacity | 400,000,000 | ||||||||||
Line of credit facility, remaining borrowing capacity | 425,000,000 | ||||||||||
Line of Credit | 2018 EGL Revolving Credit Facility | Subsequent Event | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, remaining borrowing capacity | $ 125,000,000 | ||||||||||
Letters of Credit | Cavello Letter Of Credit Facility | Line of Credit | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | 100,000,000 | ||||||||||
Letters of credit | 100,000,000 | 100,000,000 | |||||||||
Letters of Credit | Mercantile Letter Of Credit Facility | Line of Credit | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | £ | £ 32,000,000 | ||||||||||
Letters of credit | 44,200,000 | 43,700,000 | |||||||||
Letters of Credit | Line of Credit | FAL Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | 275,000,000 | ||||||||||
Optional increase in borrowing capacity | 75,000,000 | ||||||||||
Letters of credit | 210,000,000 | 210,000,000 | |||||||||
Letters of Credit | Line of Credit | June 2021 Letter Of Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 250,000,000 | ||||||||||
Letters of credit | 250,000,000 | ||||||||||
Letters of Credit | Line of Credit | May 2021 Letter Of Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||||||
Letters of credit | 100,000,000 | ||||||||||
Letters of Credit | Line of Credit | 2018 Facility Agreement | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | 120,000,000 | ||||||||||
Optional increase in borrowing capacity | 60,000,000 | ||||||||||
Letters of credit | 115,700,000 | 115,700,000 | |||||||||
Letters of Credit | Line of Credit | Maiden Facility Agreement | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | 800,000,000 | ||||||||||
Letters of credit | 566,600,000 | 587,100,000 | |||||||||
Letters of Credit | Line of Credit | Maiden Facility Agreement | Scenario, Previously Reported | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Letters of credit | 424,100,000 | ||||||||||
Letters of Credit | Line of Credit | 2020 Letter Of Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | 65,000,000 | ||||||||||
Letters of credit | 61,000,000 | $ 61,000,000 | |||||||||
Deposit Facility | FAL Deposit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Cash and investments | 89,800,000 | ||||||||||
Deposit Facility | Line of Credit | FAL Deposit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 90,000,000 | $ 90,000,000 | |||||||||
Optional increase in borrowing capacity | $ 10,000,000 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest | $ 12,635 | $ 13,609 |
North Bay | Trident | ||
Noncontrolling Interest [Line Items] | ||
Interest owned by an entity (percent) | 39.30% | |
North Bay | Dowling | ||
Noncontrolling Interest [Line Items] | ||
Interest owned by an entity (percent) | 1.70% | |
Subsidiaries | North Bay | Trident | ||
Noncontrolling Interest [Line Items] | ||
Interest owned by an entity (percent) | 39.30% | |
Subsidiaries | North Bay | Dowling | ||
Noncontrolling Interest [Line Items] | ||
Interest owned by an entity (percent) | 1.70% |
Noncontrolling Interests - Carr
Noncontrolling Interests - Carrying Amount of Equity Attributable to Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Increase (Decrease) in Redeemable Noncontrolling Interest [Roll Forward] | ||||
Balance at beginning of period | $ 174,803 | $ 392,773 | $ 365,436 | $ 438,791 |
Distributions paid | 0 | 0 | (202,073) | 0 |
Net earnings (losses) attributable to RNCI | 2,441 | (20,140) | 14,186 | (52,099) |
Change in unrealized losses on AFS investments attributable to RNCI | 40 | 10,543 | (211) | 6,373 |
Change in currency translation adjustments attributable to RNCI | 165 | (165) | 841 | (165) |
Change in redemption value of RNCI | 0 | (16,478) | (730) | (26,628) |
Cumulative effect of change in accounting principle attributable to RNCI | 0 | 0 | 0 | 261 |
Balance at end of period | $ 177,449 | $ 366,533 | $ 177,449 | $ 366,533 |
Shareholders Equity - Additiona
Shareholders Equity - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Feb. 25, 2021 | |
Class of Stock [Line Items] | |||||
Repurchase authorized amount | $ 150,000,000 | ||||
Shares repurchased (in shares) | 30,364 | 48,367 | |||
Average price per share repurchased (in dollars per share) | $ 237.39 | $ 236.39 | |||
Shares repurchased, value | $ 7,200,000 | $ 11,433,000 | $ 12,526,000 | ||
Remaining repurchase amount | $ 112,600,000 | $ 112,600,000 | |||
Shares issued (in shares) | 89,590 | ||||
Total dividends paid | $ 17,850,000 | 17,850,000 | |||
Non-voting convertible ordinary Series C Shares (issued and outstanding 2021: 2,689,262; 2020: 2,599,672) | |||||
Class of Stock [Line Items] | |||||
Number of shares called by warrants (in shares) | 175,901 | 175,901 | |||
Exercise price (in dollars per share) | $ 115 | $ 115 | |||
Shares issued (in shares) | 89,590 | ||||
Series D Preferred Shares (issued and outstanding 2021 and 2020: 16,000) | |||||
Class of Stock [Line Items] | |||||
Total dividends paid | $ 7,000,000 | $ 7,000,000 | $ 14,000,000 | 14,000,000 | |
Series E Preferred Shares (issued and outstanding 2021 and 2020: 4,400) | |||||
Class of Stock [Line Items] | |||||
Total dividends paid | $ 1,900,000 | $ 1,900,000 | $ 3,900,000 | $ 3,900,000 |
Shareholders Equity - Changes i
Shareholders Equity - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | $ 6,688,004 | |||
Unrealized losses on fixed income available-for-sale investments arising during the year | $ 57,020 | $ 112,506 | (54,254) | $ 53,771 |
Reclassification adjustment for change in allowance for credit losses recognized in net earnings | (5,094) | (10,762) | 6,931 | 2,450 |
Reclassification adjustment for net realized (gains) losses included in net earnings | (529) | (4,222) | (1,123) | (4,010) |
Reclassification to earnings on disposal of subsidiary | 475 | |||
Change in currency translation adjustment | (399) | (1,205) | 1,019 | (1,891) |
Total other comprehensive income (loss) | 50,998 | 96,317 | (46,952) | 50,320 |
Balance, end of period | 7,199,943 | 5,200,466 | 7,199,943 | 5,200,466 |
Unrealized gains (losses) on available-for-sale investments, Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (26,541) | (41,573) | 72,576 | (432) |
Total other comprehensive income (loss) | 51,357 | 86,979 | (47,760) | 45,838 |
Balance, end of period | 24,816 | 45,406 | 24,816 | 45,406 |
Unrealized gains on fixed income available-for-sale investments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Unrealized losses on fixed income available-for-sale investments arising during the year | 57,020 | 112,506 | (54,254) | 53,771 |
Reclassification adjustment for change in allowance for credit losses recognized in net earnings | (5,094) | (10,762) | 6,931 | 2,450 |
Reclassification adjustment for net realized (gains) losses included in net earnings | (529) | (4,222) | (1,123) | (4,010) |
Reclassification to earnings on disposal of subsidiary | 475 | |||
Total other comprehensive income (loss) | 51,397 | 97,522 | (47,971) | 52,211 |
Unrealized gains (losses) on available-for-sale investments, Noncontrolling interests | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Other comprehensive (income) loss attributable to RNCI | (40) | (10,543) | 211 | (6,373) |
Cumulative current translation adjustment, Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | 8,619 | 7,862 | 7,876 | 8,548 |
Total other comprehensive income (loss) | (565) | (1,038) | 178 | (1,724) |
Balance, end of period | 8,054 | 6,824 | 8,054 | 6,824 |
Cumulative Currency Translation Adjustment | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Change in currency translation adjustment | (399) | (1,205) | 1,019 | (1,891) |
Total other comprehensive income (loss) | (399) | (1,205) | 1,019 | (1,891) |
Cumulative current translation adjustment, Noncontrolling interests | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Other comprehensive (income) loss attributable to RNCI | (166) | 167 | (841) | 167 |
Defined benefit pension liability, Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | 207 | (945) | 207 | (945) |
Balance, end of period | 207 | (945) | 207 | (945) |
Defined Benefit Pension Liability | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Total other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Defined benefit pension liability, Noncontrolling interests | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Other comprehensive (income) loss attributable to RNCI | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive Income, Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (17,715) | (34,656) | 80,659 | 7,171 |
Balance, end of period | 33,077 | 51,285 | 33,077 | 51,285 |
Accumulated Other Comprehensive Income | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Total other comprehensive income (loss) | 50,998 | 96,317 | (46,952) | 50,320 |
Accumulated Other Comprehensive Income, Noncontrolling interests | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Other comprehensive (income) loss attributable to RNCI | $ (206) | $ (10,376) | $ (630) | $ (6,206) |
Shareholders Equity - Tax Effec
Shareholders Equity - Tax Effect (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) | $ 53,059 | $ 96,317 | $ (49,846) | $ 50,320 |
Other comprehensive income (loss) | (2,061) | 0 | 2,894 | 0 |
Reclassification adjustment for net realized (gains) losses included in net earnings | (529) | (4,222) | (1,123) | (4,010) |
Total other comprehensive income (loss) | 50,998 | 96,317 | (46,952) | 50,320 |
Unrealized gains on fixed income available-for-sale investments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Before reclassifications and tax | 59,178 | 112,506 | (57,089) | 53,771 |
Reclassification adjustment for change in allowance for credit losses recognized in net earnings | (5,090) | (10,762) | 7,137 | 2,450 |
Reclassification adjustment for net realized (gains) losses included in net earnings | (630) | (4,222) | (1,499) | (4,010) |
Reclassification to earnings on disposal of subsidiary | 586 | 0 | ||
Before reclassifications, tax | (2,158) | 0 | 2,835 | 0 |
Reclassification adjustment for change in allowance for credit losses recognized in net earnings | (4) | 0 | (206) | 0 |
Reclassification adjustment for net realized (gains) losses included in net earnings | 101 | 0 | 376 | 0 |
Reclassification to earnings on disposal of subsidiary | (111) | 0 | ||
Before reclassifications, net of tax amount | 57,020 | 112,506 | (54,254) | 53,771 |
Reclassification adjustment for change in allowance for credit losses recognized in net earnings | (5,094) | (10,762) | 6,931 | 2,450 |
Reclassification adjustment for net realized (gains) losses included in net earnings | (529) | (4,222) | (1,123) | (4,010) |
Reclassification to earnings on disposal of subsidiary | 475 | 0 | ||
Total other comprehensive income (loss) | 51,397 | 97,522 | (47,971) | 52,211 |
Cumulative Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Before reclassifications and tax | (399) | (1,205) | 1,019 | (1,891) |
Before reclassifications, tax | 0 | 0 | 0 | 0 |
Before reclassifications, net of tax amount | (399) | (1,205) | 1,019 | (1,891) |
Total other comprehensive income (loss) | $ (399) | $ (1,205) | $ 1,019 | $ (1,891) |
Shareholders' Equity - Reclassi
Shareholders' Equity - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net realized and unrealized gains | [1] | $ 405,220 | $ 967,608 | $ 384,432 | $ 338,547 |
Net loss from discontinued operations, net of income taxes | 0 | (1,152) | 0 | (3,221) | |
Income tax expense | (9,422) | (16,652) | (3,440) | (11,380) | |
NET EARNINGS | 389,306 | 787,486 | 592,219 | 246,868 | |
Reclassification out of Accumulated Other Comprehensive Income | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
NET EARNINGS | 5,623 | 14,984 | (6,283) | 1,560 | |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains on fixed income available-for-sale investments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net realized and unrealized gains | 5,720 | 13,012 | (6,224) | 894 | |
Net loss from discontinued operations, net of income taxes | 0 | 1,972 | 0 | 666 | |
Total before tax | 5,720 | 14,984 | (6,224) | 1,560 | |
Income tax expense | $ (97) | $ 0 | $ (59) | $ 0 | |
[1] | Includes amounts attributed to the InRe Fund, refer to Note 11 - "Variable Interest Entities" for additional information. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||
Net earnings (loss) from continuing operations | $ 377,326 | $ 799,232 | $ 560,523 | $ 283,632 |
Net earnings (loss) from discontinued operations | 0 | (679) | 0 | (1,900) |
NET EARNINGS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ 377,326 | $ 798,553 | $ 560,523 | $ 281,732 |
Denominator: | ||||
Weighted-average ordinary shares outstanding — basic (in shares) | 21,631,749 | 21,565,240 | 21,597,236 | 21,557,542 |
Effect of dilutive securities: | ||||
Share-based compensation plans (in shares) | 200,469 | 185,300 | 214,849 | 177,264 |
Warrants (in shares) | 0 | 38,702 | 80,659 | 53,525 |
Weighted-average ordinary shares outstanding — diluted (in shares) | 21,832,218 | 21,789,242 | 21,892,744 | 21,788,331 |
Basic: | ||||
Net earnings from continuing operations (in dollars per share) | $ 17.44 | $ 37.06 | $ 25.95 | $ 13.16 |
Net loss from discontinued operations (in dollars per share) | 0 | (0.03) | 0 | (0.09) |
Net earnings per ordinary share (in dollars per share) | 17.44 | 37.03 | 25.95 | 13.07 |
Diluted: | ||||
Net earnings from continuing operations (in dollars per share) | 17.28 | 36.68 | 25.60 | 13.02 |
Net loss from discontinued operations (in dollars per share) | 0 | (0.03) | 0 | (0.09) |
Net earnings per ordinary share (in dollars per share) | $ 17.28 | $ 36.65 | $ 25.60 | $ 12.93 |
Shares issued (in shares) | 89,590 |
Share-Based Compensation - Comp
Share-Based Compensation - Compensation Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 6,276 | $ 9,174 | $ 16,311 | $ 9,038 |
Tax benefit | 500 | 400 | 1,400 | 1,300 |
Restricted shares and restricted share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 1,714 | 2,330 | 3,009 | 3,929 |
Performance share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 2,995 | 5,855 | 6,890 | 5,188 |
Cash-settled stock appreciation rights | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 245 | (316) | 3,013 | (3,475) |
Employee share purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 81 | 104 | 166 | 208 |
Joint share ownership plan expense | Employee share purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 1,133 | 1,133 | 2,254 | 2,005 |
Northshore incentive plan | Incentive plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 0 | (25) | 0 | 447 |
StarStone incentive plan | Incentive plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 0 | 0 | 0 | (223) |
Deferred compensation and ordinary share plan for non-employee directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred compensation and ordinary share plan for non-employee directors | $ 108 | $ 93 | $ 979 | $ 959 |
Income Taxation (Details)
Income Taxation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate expense (benefit) | 2.40% | 2.10% | 0.60% | 4.40% | |
Statutory rate | 0.00% | ||||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Related Party Transactions - St
Related Party Transactions - Stone Point Capital LLC (Details) $ in Thousands | Oct. 01, 2019USD ($) | Apr. 01, 2019USD ($) | Oct. 01, 2018USD ($) | Jun. 30, 2021USD ($)director | Jun. 30, 2020USD ($) | Jul. 31, 2012shares | Jun. 30, 2021USD ($)director | Jun. 30, 2020USD ($) | Mar. 31, 2021USD ($) | Jan. 01, 2021 | Dec. 31, 2020USD ($) | Nov. 30, 2020 | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 06, 2013general_partner | |
Related Party Transaction [Line Items] | |||||||||||||||||
Number of newly elected board of directors | director | 5 | 5 | |||||||||||||||
Assumed business | $ 1,965,559 | $ 954,323 | $ 2,880,011 | $ 1,425,473 | |||||||||||||
Adverse development cover | $ 59,000 | ||||||||||||||||
Redeemable noncontrolling interest | 177,449 | 366,533 | 177,449 | 366,533 | $ 174,803 | $ 365,436 | $ 392,773 | $ 438,791 | |||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Available-for-sale, at fair value | 5,576,511 | 5,576,511 | 3,658,895 | ||||||||||||||
Equities, at fair value | 1,158,219 | 1,158,219 | 846,795 | ||||||||||||||
Other investments, at fair value | 1,814,593 | 1,814,593 | 4,244,034 | ||||||||||||||
Total investments | 14,622,446 | 14,622,446 | 15,256,930 | ||||||||||||||
Cash and cash equivalents | 769,359 | 769,359 | 901,152 | ||||||||||||||
Other assets | 1,154,460 | 1,154,460 | 925,533 | ||||||||||||||
Other liabilities | 886,056 | 886,056 | $ 942,905 | ||||||||||||||
Related Party, Consolidated Statement of Earnings [Abstract] | |||||||||||||||||
Net investment income | [1] | 76,147 | 94,443 | 138,236 | 169,157 | ||||||||||||
Net realized and unrealized gains (losses) | [1] | 405,220 | 967,608 | 384,432 | 338,547 | ||||||||||||
NET EARNINGS | $ 389,306 | 787,486 | $ 592,219 | 246,868 | |||||||||||||
North Bay | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Ownership percentage in noncontrolling interest by parent | 59.00% | ||||||||||||||||
SSHL | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Ownership percentage in noncontrolling interest by parent | 59.00% | 59.00% | |||||||||||||||
Northshore | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Ownership percentage in noncontrolling interest by parent | 13.80% | 54.10% | |||||||||||||||
Percentage of shares owned in order to designate member of board of directors | 50.00% | 50.00% | |||||||||||||||
Right to designate board of directors if 50% or more of shares owned | director | 1 | 1 | |||||||||||||||
Common shares subject to transfer restriction, term | 18 months | ||||||||||||||||
Short-term investments, AFS, at fair value | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Available-for-sale, at fair value | $ 110,473 | $ 110,473 | $ 263,795 | ||||||||||||||
Trading, at fair value | 19,788 | 19,788 | 5,129 | ||||||||||||||
Fixed Maturities | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Available-for-sale, at fair value | 5,466,038 | 5,466,038 | 3,395,100 | ||||||||||||||
Trading, at fair value | 4,088,402 | 4,088,402 | 4,594,892 | ||||||||||||||
Unfunded commitments | 21,000 | 21,000 | |||||||||||||||
Hedge funds | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Other investments, at fair value | 2,638,339 | ||||||||||||||||
Fixed income funds | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Other investments, at fair value | 603,889 | 603,889 | 552,541 | ||||||||||||||
Private equity funds | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Other investments, at fair value | 536,368 | 536,368 | 363,103 | ||||||||||||||
Unfunded commitments | 48,100 | 48,100 | |||||||||||||||
CLO equities | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Other investments, at fair value | 145,103 | 145,103 | 128,083 | ||||||||||||||
CLO equity funds | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Other investments, at fair value | 190,158 | 190,158 | 166,523 | ||||||||||||||
Other investments | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Unfunded commitments | $ 1,400,000 | $ 1,400,000 | |||||||||||||||
SSHL | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Right to designate board of directors | director | 3 | 3 | |||||||||||||||
Trident | Affiliated Entity | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related party transaction, shares acquired (in shares) | shares | 1,635,986 | ||||||||||||||||
Number of newly elected board of directors | general_partner | 1 | ||||||||||||||||
Number of general partners | general_partner | 4 | ||||||||||||||||
Redeemable noncontrolling interest | $ 170,100 | $ 170,100 | 350,200 | ||||||||||||||
Starstone | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Assumed business | 189,400 | ||||||||||||||||
Reinsurance premium consideration | $ 189,400 | ||||||||||||||||
StonePoint And Affiliated Entities | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Equities, at fair value | 134,178 | 134,178 | 103,914 | ||||||||||||||
Total investments | 1,126,620 | 1,126,620 | 1,054,873 | ||||||||||||||
Cash and cash equivalents | 13,635 | 13,635 | 23,933 | ||||||||||||||
Other assets | 1,971 | 1,971 | 403 | ||||||||||||||
Other liabilities | 1,515 | 1,515 | 745 | ||||||||||||||
Net investment | 1,140,711 | 1,140,711 | 1,078,464 | ||||||||||||||
Related Party, Consolidated Statement of Earnings [Abstract] | |||||||||||||||||
Net investment income | 4,416 | 4,793 | 4,878 | 8,877 | |||||||||||||
Net realized and unrealized gains (losses) | 22,318 | 29,729 | 47,232 | (72,787) | |||||||||||||
NET EARNINGS | 26,734 | 34,522 | 52,110 | (63,910) | |||||||||||||
StonePoint And Affiliated Entities | Short-term investments, AFS, at fair value | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Available-for-sale, at fair value | 0 | 0 | 878 | ||||||||||||||
StonePoint And Affiliated Entities | Fixed Maturities | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Available-for-sale, at fair value | 291,924 | 291,924 | 227,397 | ||||||||||||||
Trading, at fair value | 142,736 | 142,736 | 196,086 | ||||||||||||||
StonePoint And Affiliated Entities | Hedge funds | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Other investments, at fair value | 0 | 0 | 19,844 | ||||||||||||||
StonePoint And Affiliated Entities | Fixed income funds | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Other investments, at fair value | 230,341 | 230,341 | 210,017 | ||||||||||||||
StonePoint And Affiliated Entities | Private equity funds | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Other investments, at fair value | 52,811 | 52,811 | 37,262 | ||||||||||||||
StonePoint And Affiliated Entities | CLO equities | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Other investments, at fair value | 36,032 | 36,032 | 38,658 | ||||||||||||||
StonePoint And Affiliated Entities | CLO equity funds | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Other investments, at fair value | 189,793 | 189,793 | 166,523 | ||||||||||||||
StonePoint And Affiliated Entities | Private Debt | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Other investments, at fair value | 18,950 | 18,950 | 27,016 | ||||||||||||||
StonePoint And Affiliated Entities | Real estate fund | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Other investments, at fair value | 29,855 | 29,855 | $ 27,278 | ||||||||||||||
StonePoint And Affiliated Entities | Affiliated Entity | Fixed Maturities | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Unfunded commitments | 21,000 | 21,000 | |||||||||||||||
StonePoint And Affiliated Entities | Affiliated Entity | Private equity funds | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Unfunded commitments | 38,000 | 38,000 | |||||||||||||||
StonePoint And Affiliated Entities | Affiliated Entity | Other investments | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Unfunded commitments | $ 203,200 | $ 203,200 | |||||||||||||||
Stone Point | Affiliated Entity | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Ownership percentage | 8.80% | 8.80% | |||||||||||||||
Trident | North Bay | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Interest owned by an entity (percent) | 39.30% | ||||||||||||||||
Trident | SSHL | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Interest owned by an entity (percent) | 39.30% | 39.30% | |||||||||||||||
Trident | Northshore | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Interest owned by an entity (percent) | 76.30% | 36.00% | |||||||||||||||
Trident | SSHL | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Right to designate board of directors | director | 2 | 2 | |||||||||||||||
Trident | North Bay | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Payments to acquire investments | $ 53,100 | ||||||||||||||||
Dowling | North Bay | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Interest owned by an entity (percent) | 1.70% | ||||||||||||||||
Dowling | SSHL | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Interest owned by an entity (percent) | 1.70% | 1.70% | |||||||||||||||
Dowling | Northshore | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Interest owned by an entity (percent) | 1.60% | ||||||||||||||||
Dowling | Core Specialty | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Interest owned by an entity (percent) | 0.40% | ||||||||||||||||
North Bay | SSHL | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Ownership percentage in noncontrolling interest by parent | 100.00% | ||||||||||||||||
North Bay | Northshore | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Ownership percentage in noncontrolling interest by parent | 92.10% | ||||||||||||||||
Core Specialty | Northshore | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Interest owned by an entity (percent) | 13.80% | ||||||||||||||||
North Bay Shareholders | North Bay | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Payments to acquire investments | $ 48,000 | $ 135,000 | |||||||||||||||
Core Specialty | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Ownership percentage, fully diluted basis | 24.70% | 24.70% | 25.20% | 25.20% | |||||||||||||
Mitchell International | Affiliated Entity | |||||||||||||||||
Related Party, Consolidated Balance Sheet [Abstract] | |||||||||||||||||
Other investments, at fair value | $ 25,000 | ||||||||||||||||
Sound Point Capital | Affiliated Entity | Senior Secured Term Loan Facility | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Note receivable | $ 10,000 | $ 10,000 | |||||||||||||||
Term loan facility, term | 2 years | ||||||||||||||||
[1] | Includes amounts attributed to the InRe Fund, refer to Note 11 - "Variable Interest Entities" for additional information. |
Related Party Transactions - Hi
Related Party Transactions - Hillhouse (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 21, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||||
Shares issued (in shares) | 89,590 | ||||||
Investment | $ 7,187,308 | $ 7,187,308 | $ 6,674,395 | ||||
Other investments | 1,814,593 | 1,814,593 | $ 4,244,034 | ||||
Redeemed amount | 902,200 | 902,200 | |||||
Net realized and unrealized gains (losses) | [1] | 405,220 | $ 967,608 | 384,432 | $ 338,547 | ||
InRe Fund | |||||||
Related Party Transaction [Line Items] | |||||||
Investment | 2,200,000 | 2,200,000 | |||||
Net realized and unrealized gains (losses) | $ 216,730 | 365,054 | $ 293,337 | 320,196 | |||
Non-voting convertible ordinary Series C Shares (issued and outstanding 2021: 2,689,262; 2020: 2,599,672) | |||||||
Related Party Transaction [Line Items] | |||||||
Number of shares called by warrants (in shares) | 175,901 | 175,901 | |||||
Exercise price (in dollars per share) | $ 115 | $ 115 | |||||
Shares issued (in shares) | 89,590 | ||||||
Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage | 47.40% | 47.40% | 47.40% | ||||
Hillhouse Affiliates | Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage | 9.40% | 9.40% | |||||
Economic interest percentage | 16.90% | 16.90% | |||||
Hillhouse | |||||||
Related Party Transaction [Line Items] | |||||||
Other investments | $ 0 | $ 0 | $ 2,734,666 | ||||
Hillhouse | Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Termination and release agreement, performance fee waived | $ 100,000 | ||||||
Proceeds from sale of investments | $ 381,300 | ||||||
Other investments | 6,140 | 6,140 | 403,580 | ||||
Net realized and unrealized gains (losses) | 0 | 420,284 | 97,478 | 355,380 | |||
Hillhouse | Hillhouse Affiliates | Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Other investments | 12,954 | 12,954 | 851,435 | ||||
AnglePoint | |||||||
Related Party Transaction [Line Items] | |||||||
Net realized and unrealized gains (losses) | 216,730 | 216,730 | |||||
AnglePoint | Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Fees incurred | 489,000 | ||||||
AnglePoint | Affiliated Entity | Scenario, Previously Reported | |||||||
Related Party Transaction [Line Items] | |||||||
Fees incurred | 394,000 | ||||||
InRe Fund | |||||||
Related Party Transaction [Line Items] | |||||||
Other investments | 2,400,000 | ||||||
InRe Fund | Hillhouse | Affiliated Entity | InRe Fund | |||||||
Related Party Transaction [Line Items] | |||||||
Other investments | 2,365,158 | ||||||
Net realized and unrealized gains (losses) | 0 | 365,054 | 76,607 | 320,196 | |||
Other funds | Hillhouse | Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Other investments | 0 | 0 | $ 369,508 | ||||
Net realized and unrealized gains (losses) | $ 0 | $ 55,230 | $ 20,871 | $ 35,184 | |||
[1] | Includes amounts attributed to the InRe Fund, refer to Note 11 - "Variable Interest Entities" for additional information. |
Related Party Transactions - An
Related Party Transactions - AnglePoint HK (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||
Related Party Transaction [Line Items] | ||||||
Investment | $ 7,187,308 | $ 7,187,308 | $ 6,674,395 | |||
Investment expenses | (3,267) | $ (2,983) | (6,882) | $ (7,478) | ||
Net realized and unrealized gains | [1] | 405,220 | 967,608 | 384,432 | 338,547 | |
NET EARNINGS | 389,306 | 787,486 | 592,219 | 246,868 | ||
InRe Fund | ||||||
Related Party Transaction [Line Items] | ||||||
Investment | 2,200,000 | 2,200,000 | ||||
Investment expenses | (22,766) | (22,766) | ||||
Net realized and unrealized gains | 216,730 | $ 365,054 | 293,337 | $ 320,196 | ||
NET EARNINGS | 196,558 | 196,558 | ||||
AnglePoint | ||||||
Related Party Transaction [Line Items] | ||||||
Investment expenses | (20,171) | (20,171) | ||||
Net realized and unrealized gains | 216,730 | 216,730 | ||||
NET EARNINGS | $ 196,559 | $ 196,559 | ||||
[1] | Includes amounts attributed to the InRe Fund, refer to Note 11 - "Variable Interest Entities" for additional information. |
Related Party Transactions - No
Related Party Transactions - Northshore (Details) - USD ($) $ in Thousands | Jan. 01, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||||||||
Equity method investments | $ 936,430 | $ 936,430 | $ 832,295 | |||||||
Premiums receivable | 379,981 | 379,981 | 405,793 | |||||||
Losses and loss adjustment expenses | $ 254,600 | 13,037,858 | $ 10,593,436 | 13,037,858 | $ 10,593,436 | 10,847,843 | $ 11,427,420 | $ 9,836,797 | $ 9,868,404 | |
Net incurred losses and LAE | 39,304 | 186,692 | (16,203) | 229,992 | ||||||
Interest expense | (16,301) | (14,018) | (32,480) | (27,433) | ||||||
NET EARNINGS | 389,306 | 787,486 | 592,219 | 246,868 | ||||||
Distribution of SGL No.1 share of Syndicate 609 results | 19,115 | |||||||||
Net receivable (payable) | 0 | |||||||||
Debt securities, fair value | 5,576,511 | 5,576,511 | 3,658,895 | |||||||
Other investments | 1,814,593 | 1,814,593 | 4,244,034 | |||||||
Cash and cash equivalents | 769,359 | 769,359 | 901,152 | |||||||
Restricted cash and cash equivalents | 356,899 | 356,899 | 471,964 | |||||||
Reinsurance balances recoverable on paid and unpaid losses | 492,343 | 492,343 | 520,830 | |||||||
Funds held by reinsured companies | 2,201,958 | 2,201,958 | 635,819 | |||||||
Other assets | 1,154,460 | 1,154,460 | 925,533 | |||||||
Losses and loss adjustment expenses (Note 8) | 10,803,753 | 10,803,753 | 8,140,362 | |||||||
Insurance and reinsurance balances payable | 584,084 | 584,084 | 494,412 | |||||||
Other liabilities | 886,056 | 886,056 | 942,905 | |||||||
Net premiums earned | 59,644 | 142,871 | 152,520 | 302,222 | ||||||
Net investment income | [1] | 76,147 | 94,443 | 138,236 | 169,157 | |||||
Net realized and unrealized gains | [1] | 405,220 | 967,608 | 384,432 | 338,547 | |||||
Net incurred losses and loss adjustment expenses | (39,304) | (186,692) | 16,203 | (229,992) | ||||||
Acquisition costs | (4,956) | (49,067) | (38,970) | (95,110) | ||||||
General and administrative expenses | (92,717) | (144,830) | (175,717) | (243,258) | ||||||
Other income | (3,359) | (1,087) | (2,808) | 19,357 | ||||||
Short-term investments, AFS, at fair value | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt securities, trading | 19,788 | 19,788 | 5,129 | |||||||
Debt securities, fair value | 110,473 | 110,473 | 263,795 | |||||||
Fixed Maturities | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt securities, trading | 4,088,402 | 4,088,402 | 4,594,892 | |||||||
Debt securities, fair value | $ 5,466,038 | $ 5,466,038 | $ 3,395,100 | |||||||
Affiliated Entity | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Ownership % | 47.40% | 47.40% | 47.40% | |||||||
Reinsured portfolio, total liabilities | $ 19,000 | |||||||||
Affiliated Entity | Northshore | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Transition period | 18 months | |||||||||
Premiums receivable | $ 13,185 | $ 13,185 | ||||||||
Losses and loss adjustment expenses | 12,921 | 12,921 | ||||||||
Net incurred losses and LAE | 28 | 346 | ||||||||
Interest expense | (83) | (83) | ||||||||
NET EARNINGS | (55) | 263 | ||||||||
Net incurred losses and loss adjustment expenses | (28) | (346) | ||||||||
Run-off | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Losses and loss adjustment expenses | 13,055,661 | 9,231,912 | 13,055,661 | 9,231,912 | $ 9,432,525 | $ 11,467,367 | $ 8,652,532 | $ 8,683,983 | ||
Net incurred losses and LAE | (16,997) | (60,249) | (12,372) | (87,442) | ||||||
Syndicate underwriting capacity percentage | 25.00% | |||||||||
Reinsurance balances recoverable on paid and unpaid losses | 525,950 | 525,950 | $ 542,257 | |||||||
Net incurred losses and loss adjustment expenses | 16,997 | $ 60,249 | 12,372 | $ 87,442 | ||||||
Atrium Syndicate 609 | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
NET EARNINGS | (1,432) | 0 | ||||||||
Atrium Syndicate 609 | Quota Share Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Premiums receivable | 18,408 | 18,408 | ||||||||
Net incurred losses and LAE | 10,281 | 14,759 | ||||||||
Other investments | 12,153 | 12,153 | ||||||||
Cash and cash equivalents | 24,654 | 24,654 | ||||||||
Restricted cash and cash equivalents | 4,626 | 4,626 | ||||||||
Reinsurance balances recoverable on paid and unpaid losses | 76,670 | 76,670 | ||||||||
Funds held by reinsured companies | 31,555 | 31,555 | ||||||||
Other assets | 41,657 | 41,657 | ||||||||
Losses and loss adjustment expenses (Note 8) | 240,910 | 240,910 | ||||||||
Insurance and reinsurance balances payable | 87,240 | 87,240 | ||||||||
Other liabilities | 48,286 | 48,286 | ||||||||
Net premiums earned | 17,240 | 37,280 | ||||||||
Net investment income | 288 | 1,046 | ||||||||
Net realized and unrealized gains | 210 | (1,099) | ||||||||
Net incurred losses and loss adjustment expenses | (10,281) | (14,759) | ||||||||
Acquisition costs | (4,922) | (9,899) | ||||||||
General and administrative expenses | (1,418) | (3,502) | ||||||||
Other income | 1,282 | 1,282 | ||||||||
Atrium Syndicate 609 | Lease Capacity Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Other liabilities | 12,782 | 12,782 | ||||||||
Other expense | (3,831) | (10,349) | ||||||||
Atrium Syndicate 609 | Short-term investments, AFS, at fair value | Quota Share Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt securities, trading | 0 | 0 | ||||||||
Atrium Syndicate 609 | Fixed Maturities | Quota Share Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt securities, trading | 165,717 | 165,717 | ||||||||
Debt securities, fair value | $ 1,102 | $ 1,102 | ||||||||
Arden | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Due to Arden under reinsurance agreement | (7,965) | |||||||||
Arden | Affiliated Entity | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Quota share reinsurance agreement, percentage | 65.00% | 65.00% | ||||||||
Atrium 5 | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Due to Atrium 5 Limited under Capacity Lease Agreement | $ (11,150) | |||||||||
Northshore | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Ownership % | 13.80% | |||||||||
Ownership percentage in noncontrolling interest by parent | 13.80% | 54.10% | ||||||||
Northshore | Trident | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Interest owned by an entity (percent) | 76.30% | 36.00% | ||||||||
[1] | Includes amounts attributed to the InRe Fund, refer to Note 11 - "Variable Interest Entities" for additional information. |
Related Party Transactions - Mo
Related Party Transactions - Monument Re (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 51 Months Ended | 57 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | ||||||
Contributed amount of common and preferred shares | $ 0 | $ 33,000 | ||||
Equity method investments | $ 936,430 | 936,430 | $ 832,295 | $ 936,430 | ||
Earnings (loss) from equity method investments | $ (3,059) | $ (8,790) | $ 114,972 | 3,660 | ||
Monument Re | ||||||
Related Party Transaction [Line Items] | ||||||
Contributed amount of common and preferred shares | $ 59,600 | $ 59,600 | ||||
Common shares, ownership percentage | 20.00% | 20.00% | 20.00% | |||
Ownership percentage | 22.50% | 22.50% | 23.00% | 22.50% | ||
Equity method investments | $ 204,322 | $ 204,322 | $ 193,716 | $ 204,322 | ||
Earnings (loss) from equity method investments | 1,900 | (100) | 16,700 | (1,500) | ||
Fee income (less than) | $ 100 | $ 0 | $ 100 | $ 0 |
Related Party Transactions - Cl
Related Party Transactions - Clear Spring (Details) - USD ($) $ in Thousands | Dec. 30, 2020 | Jan. 01, 2017 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | |||||||
Capitalized amount of investment | $ 56,000 | ||||||
Proceeds from sale of investment | $ 12,200 | ||||||
Gain on sale | $ 600 | ||||||
Earnings (loss) from equity method investments | $ (3,059) | $ (8,790) | $ 114,972 | $ 3,660 | |||
Transactions under StarStone ceding quota share, included in net loss from discontinued operations: | |||||||
Net incurred losses and LAE | 39,304 | 186,692 | (16,203) | 229,992 | |||
Acquisition costs | (4,956) | (49,067) | (38,970) | (95,110) | |||
Transactions under assuming quota share: | |||||||
Net earnings | $ 389,306 | 787,486 | $ 592,219 | 246,868 | |||
Clear Spring | |||||||
Related Party Transaction [Line Items] | |||||||
Earnings (loss) from equity method investments | (600) | (200) | |||||
Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage | 47.40% | 47.40% | 47.40% | ||||
Clear Spring | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of business reinsured | 25.00% | ||||||
Clear Spring | Equity Method Investee | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage | 20.00% | ||||||
Clear Spring | Affiliated Entity | |||||||
Transactions under StarStone ceding quota share, included in net loss from discontinued operations: | |||||||
Net incurred losses and LAE | 510 | 882 | |||||
Acquisition costs | (20) | (7) | |||||
Transactions under assuming quota share: | |||||||
Premium earned | (170) | 0 | |||||
Net earnings | (1,100) | (426) | |||||
Starstone | Clear Spring | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of business reinsured | 33.30% | ||||||
Starstone | Clear Spring | Affiliated Entity | |||||||
Transactions under StarStone ceding quota share, included in net loss from discontinued operations: | |||||||
Ceded premium earned | 682 | 1 | |||||
Net incurred losses and LAE | 2,043 | 1,289 | |||||
Acquisition costs | $ (99) | $ (27) |
Related Party Transactions - Am
Related Party Transactions - AmTrust (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Nov. 30, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2018 | Dec. 31, 2020 | ||
Related Party Transaction [Line Items] | |||||||||
Purchase amount of equity interest | $ 0 | $ 33,000 | |||||||
Net investment income | [1] | $ 76,147 | $ 94,443 | 138,236 | 169,157 | ||||
Net realized and unrealized gains | [1] | 405,220 | 967,608 | 384,432 | 338,547 | ||||
NET EARNINGS | 389,306 | 787,486 | 592,219 | 246,868 | |||||
AmTrust Financial Services, Inc. | Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Ownership percentage | 45.00% | ||||||||
Trident Pine | Evergreen Parent L.P. | Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Capital units ownership percentage | 21.80% | ||||||||
Evergreen Parent L.P. | Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Purchase amount of equity interest | $ 25,900 | $ 200,000 | |||||||
Capital units ownership percentage | 8.40% | ||||||||
Fee income (less than) | $ 3,300 | ||||||||
AmTrust Financial Services, Inc. | Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Investment in related party | 227,400 | 227,400 | $ 230,300 | ||||||
Net investment income | 1,493 | 1,896 | 2,986 | 4,367 | |||||
Net realized and unrealized gains | (1,453) | 3,954 | (2,945) | 3,809 | |||||
NET EARNINGS | $ 40 | $ 5,850 | $ 41 | $ 8,176 | |||||
[1] | Includes amounts attributed to the InRe Fund, refer to Note 11 - "Variable Interest Entities" for additional information. |
Related Party Transactions - Ci
Related Party Transactions - Citco (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||||
Indirect investment acquired | $ 307,429 | $ 656,757 | ||||
Equity method investments | $ 936,430 | 936,430 | $ 832,295 | |||
Earnings (loss) from equity method investments | $ (3,059) | $ (8,790) | $ 114,972 | 3,660 | ||
Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership % | 47.40% | 47.40% | 47.40% | |||
Trident | Citco | Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Indirect investment acquired | $ 50,000 | |||||
Ownership percentage | 3.40% | 3.40% | 3.40% | |||
Citco | Citco | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership % | 6.20% | 6.20% | ||||
Citco | Convertible Preferred Stock | Citco | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership % | 15.40% | 15.40% | ||||
Citco | ||||||
Related Party Transaction [Line Items] | ||||||
Equity method investments | $ 54,069 | $ 54,069 | $ 53,022 | |||
Citco | Common Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership % | 31.90% | 31.90% | 31.90% | |||
Citco | ||||||
Related Party Transaction [Line Items] | ||||||
Equity method investments | $ 54,100 | $ 54,100 | $ 53,000 | |||
Earnings (loss) from equity method investments | $ 700 | $ 500 | $ 1,400 | $ 300 |
Related Party Transactions - En
Related Party Transactions - Enhanzed Re (Details) - USD ($) $ in Thousands | Oct. 01, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||||||||
Equity method investments | $ 936,430 | $ 936,430 | $ 832,295 | |||||
Earnings (loss) from equity method investments | (3,059) | $ (8,790) | 114,972 | $ 3,660 | ||||
Balances under ceding quota share: | ||||||||
Reinsurance balances recoverable | 1,976,727 | 1,976,727 | 2,089,163 | |||||
Funds held | 2,201,958 | 2,201,958 | 635,819 | |||||
Insurance balances payables | 584,084 | 584,084 | 494,412 | |||||
Other assets | 1,154,460 | 1,154,460 | $ 925,533 | |||||
Premiums Earned, Net [Abstract] | ||||||||
Ceded premium earned | (39,980) | (38,759) | (89,369) | (74,529) | ||||
Net investment expense | (3,267) | (2,983) | (6,882) | (7,478) | ||||
Net realized and unrealized gains | [1] | 405,220 | 967,608 | 384,432 | 338,547 | |||
Net incurred losses and LAE | 28,124 | 0 | 28,124 | 0 | ||||
Acquisition costs | 4,956 | 49,067 | 38,970 | 95,110 | ||||
NET EARNINGS | $ 389,306 | 787,486 | $ 592,219 | 246,868 | ||||
Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage | 47.40% | 47.40% | 47.40% | |||||
Enstar | Enhanzed Re | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity method investments | $ 154,100 | $ 154,100 | ||||||
Ownership percentage | 47.40% | |||||||
Uncalled amount of investment | 68,700 | 68,700 | ||||||
Allianz | Enhanzed Re | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage | 24.90% | |||||||
Hillhouse | Enhanzed Re | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage | 27.70% | |||||||
Enhanzed Re | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity method investments | $ 433,993 | $ 433,993 | $ 330,289 | |||||
Ownership percentage | 47.40% | 47.40% | 47.40% | |||||
Earnings (loss) from equity method investments | $ (1,900) | (8,300) | $ 103,700 | 5,900 | ||||
Enhanzed Re | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Quota share reinsurance agreement, percentage | 50.00% | 50.00% | ||||||
Enhanzed Re | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity method investments | $ 470,000 | |||||||
Balances under ceding quota share: | ||||||||
Reinsurance balances recoverable | $ 226,003 | $ 226,003 | $ 208,379 | |||||
Funds held | 242,483 | 242,483 | 193,981 | |||||
Insurance balances payables | 1,560 | 1,560 | 1,276 | |||||
Other assets | 7,767 | 7,767 | $ 730 | |||||
Premiums Earned, Net [Abstract] | ||||||||
Ceded premium earned | (1,510) | 0 | (1,641) | 0 | ||||
Fees and commission income | 117 | 0 | 233 | 0 | ||||
Net investment expense | (1,280) | 0 | (2,437) | 0 | ||||
Net realized and unrealized gains | 149 | 0 | 132 | 0 | ||||
Other income (expense) | 735 | (3,172) | 1,462 | (2,881) | ||||
Net incurred losses and LAE | 1,319 | (13) | 1,054 | (13) | ||||
Acquisition costs | 368 | 0 | 373 | 23 | ||||
NET EARNINGS | (102) | (3,185) | (824) | (2,871) | ||||
Change in unrealized losses on AFS investments | $ (665) | $ 0 | $ (1,288) | $ 0 | ||||
Enhanzed Re | Zurich | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage ceded | 10.00% | |||||||
[1] | Includes amounts attributed to the InRe Fund, refer to Note 11 - "Variable Interest Entities" for additional information. |
Related Party Transactions - Co
Related Party Transactions - Core Specialty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Nov. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
Related Party Transaction [Line Items] | |||||||||||
Equity method investments | $ 936,430 | $ 936,430 | $ 832,295 | ||||||||
Earnings (loss) from equity method investments | (3,059) | $ (8,790) | 114,972 | $ 3,660 | |||||||
Funds held by reinsured companies | 2,201,958 | 2,201,958 | 635,819 | ||||||||
Other assets | 1,154,460 | 1,154,460 | 925,533 | ||||||||
Losses and loss adjustment expenses | 13,037,858 | 10,593,436 | 13,037,858 | 10,593,436 | $ 11,427,420 | $ 254,600 | 10,847,843 | $ 9,836,797 | $ 9,868,404 | ||
Insurance and reinsurance balances payable | 584,084 | 584,084 | 494,412 | ||||||||
Other liabilities | 886,056 | 886,056 | 942,905 | ||||||||
Reinsurance balances recoverable on paid and unpaid losses | 1,976,727 | 1,976,727 | 2,089,163 | ||||||||
Net premiums earned | 59,644 | 142,871 | 152,520 | 302,222 | |||||||
Net incurred losses and loss adjustment expenses | (28,124) | 0 | (28,124) | 0 | |||||||
Acquisition costs | 4,956 | 49,067 | 38,970 | 95,110 | |||||||
Net investment income | [1] | 76,147 | 94,443 | 138,236 | 169,157 | ||||||
Interest expense | (16,301) | (14,018) | (32,480) | (27,433) | |||||||
NET EARNINGS | 389,306 | $ 787,486 | 592,219 | $ 246,868 | |||||||
Discontinued Operations, Disposed of by Sale | StarStone US | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Value of shares received | $ 235,000 | ||||||||||
Initial cash consideration received | 51,500 | ||||||||||
Cash consideration received | $ 47,000 | ||||||||||
Affiliated Entity | Core Specialty | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
NET EARNINGS | 5,738 | 23,530 | |||||||||
Affiliated Entity | Balances under assuming quota share, LPT and ADC reinsurances | Core Specialty | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Funds held by reinsured companies | 50,426 | 50,426 | 58,086 | ||||||||
Other assets | 2,764 | 2,764 | 38,846 | ||||||||
Losses and loss adjustment expenses | 597,390 | 597,390 | 682,637 | ||||||||
Insurance and reinsurance balances payable | 60,840 | 60,840 | 24,806 | ||||||||
Other liabilities | 175 | 175 | 5,003 | ||||||||
Net premiums earned | (1,310) | 2,935 | |||||||||
Net incurred losses and loss adjustment expenses | 1,369 | 9,221 | |||||||||
Acquisition costs | 1,893 | 3,217 | |||||||||
Net investment income | 0 | 121 | |||||||||
Other expense | (15) | (15) | |||||||||
Affiliated Entity | Balances under ceding reinsurances | Core Specialty | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Reinsurance balances recoverable on paid and unpaid losses | 1,691 | 1,691 | 1,736 | ||||||||
Affiliated Entity | Balances under service agreements | Core Specialty | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Other assets | 5,231 | 5,231 | 6,727 | ||||||||
Other liabilities | 53 | 53 | 328 | ||||||||
Fees and commission income | 3,801 | 7,499 | |||||||||
Affiliated Entity | Balances under sale and recapitalization agreement | Core Specialty | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Other liabilities | 0 | 0 | 4,512 | ||||||||
Other income (expense) | 0 | 567 | |||||||||
Interest expense | 0 | (15) | |||||||||
Core Specialty | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Equity method investments | 224,270 | 224,270 | $ 235,000 | ||||||||
Decrease in investment | 4,000 | ||||||||||
Earnings (loss) from equity method investments | (3,700) | (6,700) | |||||||||
Core Specialty | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Cash consideration repaid | $ 4,500 | $ 4,500 | |||||||||
[1] | Includes amounts attributed to the InRe Fund, refer to Note 11 - "Variable Interest Entities" for additional information. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Guarantor Obligations [Line Items] | ||
Funds held by reinsured companies | $ 2,201,958 | $ 635,819 |
Lease optional renewal period | 5 years | |
Lease optional termination period | 1 year | |
Limited Parental Guarantee | ||
Guarantor Obligations [Line Items] | ||
Parental guarantees | $ 2,100,000 | 1,700,000 |
US | ||
Guarantor Obligations [Line Items] | ||
Concentration of credit risk, counterparty credit exposure | 1,200,000 | 1,400,000 |
Reinsurance Recoverables | Reinsurer Concentration Risk | ||
Guarantor Obligations [Line Items] | ||
Funds held by reinsured companies | 909,500 | $ 955,000 |
Other investments | ||
Guarantor Obligations [Line Items] | ||
Commitments, unfunded | 1,400,000 | |
Private equity funds | ||
Guarantor Obligations [Line Items] | ||
Commitments, unfunded | 48,100 | |
Fixed Maturities | ||
Guarantor Obligations [Line Items] | ||
Commitments, unfunded | $ 21,000 | |
Minimum | ||
Guarantor Obligations [Line Items] | ||
Weighted-average remaining lease term | 1 year | |
Maximum | ||
Guarantor Obligations [Line Items] | ||
Weighted-average remaining lease term | 36 years |
Commitments and Contingencies_2
Commitments and Contingencies - Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease cost | $ 2,022 | $ 3,202 | $ 4,134 | $ 6,524 |
Short-term lease cost | 0 | 61 | 4 | 119 |
Total lease cost | 2,022 | 3,263 | 4,138 | 6,643 |
Sublease income | (473) | (138) | (1,027) | (276) |
Total net lease cost | 1,549 | 3,125 | 3,111 | 6,367 |
Operating cash paid for amounts included in the measurement of lease liabilities | 1,937 | 4,145 | 4,047 | 7,328 |
Non-cash activity: right-of-use assets relating to leases | $ (139) | $ 191 | $ (504) | $ 263 |
Weighted-average remaining lease term | 6 years 4 months 24 days | 6 years 2 months 12 days | 6 years 4 months 24 days | 6 years 2 months 12 days |
Weighted-average discount rate | 6.80% | 6.30% | 6.80% | 6.30% |
Commitments and Contingencies_3
Commitments and Contingencies - Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets [Extensible Enumeration] | Other assets | Other assets |
Right-of-use assets | $ 22,219 | $ 32,297 |
Current lease liabilities [Extensible Enumeration] | ||
Current lease liabilities | $ 6,047 | $ 7,959 |
Non-current lease liabilities [Extensible Enumeration] | ||
Non-current lease liabilities | $ 19,122 | $ 27,064 |
Atrium | Disposal group, held-for-sale | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | 1,000 | |
Lease liability | $ 1,000 |
Commitments and Contingencies_4
Commitments and Contingencies - Leases - Operating Lease Liabilities (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 4,230 |
2022 | 6,580 |
2023 | 5,703 |
2024 | 4,047 |
2025 | 3,165 |
2026 and beyond | 8,651 |
Total lease payments | 32,376 |
Less: Imputed interest | (7,207) |
Present value of lease liabilities | $ 25,169 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - Segment | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 3 | |
Atrium | ||
Segment Reporting Information [Line Items] | ||
Syndicate underwriting capacity percentage | 25.00% |
Segment Information - Summary o
Segment Information - Summary of Operations by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
INCOME | |||||
Net premiums earned | $ 59,644 | $ 142,871 | $ 152,520 | $ 302,222 | |
Fees and commission income | 8,274 | 10,010 | 17,872 | 17,538 | |
Net investment income | [1] | 76,147 | 94,443 | 138,236 | 169,157 |
Net realized and unrealized gains | [1] | 405,220 | 967,608 | 384,432 | 338,547 |
Other income (expense) | (3,359) | (1,087) | (2,808) | 19,357 | |
Net gain on sale of subsidiaries | 0 | 0 | 14,894 | 0 | |
Total income | 545,926 | 1,213,845 | 705,146 | 846,821 | |
EXPENSES | |||||
Net incurred losses and loss adjustment expenses | 39,304 | 186,692 | (16,203) | 229,992 | |
Acquisition costs | 4,956 | 49,067 | 38,970 | 95,110 | |
General and administrative expenses | 92,717 | 144,830 | 175,717 | 243,258 | |
Total expenses | 136,977 | 380,589 | 198,484 | 568,360 | |
EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES | 408,949 | 833,256 | 506,662 | 278,461 | |
Earnings (loss) from equity method investments | (3,059) | (8,790) | 114,972 | 3,660 | |
SEGMENT INCOME (LOSS) | 405,890 | 824,466 | 621,634 | 282,121 | |
Interest expense | (16,301) | (14,018) | (32,480) | (27,433) | |
Net foreign exchange gains (losses) | 9,139 | (5,158) | 6,505 | 6,781 | |
Income tax expense | (9,422) | (16,652) | (3,440) | (11,380) | |
NET EARNINGS FROM CONTINUING OPERATIONS | 389,306 | 788,638 | 592,219 | 250,089 | |
Net loss from discontinued operations, net of income taxes | 0 | (1,152) | 0 | (3,221) | |
NET EARNINGS | 389,306 | 787,486 | 592,219 | 246,868 | |
Net (earnings) loss attributable to noncontrolling interest | (3,055) | 19,992 | (13,846) | 52,714 | |
NET EARNINGS ATTRIBUTABLE TO ENSTAR | 386,251 | 807,478 | 578,373 | 299,582 | |
Dividends on preferred shares | (8,925) | (8,925) | (17,850) | (17,850) | |
NET EARNINGS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | 377,326 | 798,553 | 560,523 | 281,732 | |
Run-off | |||||
EXPENSES | |||||
Net incurred losses and loss adjustment expenses | (16,997) | (60,249) | (12,372) | (87,442) | |
Legacy Underwriting | |||||
EXPENSES | |||||
Net incurred losses and loss adjustment expenses | 10,281 | 95,382 | 14,759 | 200,913 | |
Operating Segments | Run-off | |||||
INCOME | |||||
Net premiums earned | 42,404 | 10,517 | 115,240 | 26,547 | |
Fees and commission income | 8,274 | 3,966 | 17,872 | 8,951 | |
Net investment income | 0 | 0 | 0 | 0 | |
Net realized and unrealized gains | 0 | 0 | 0 | 0 | |
Other income (expense) | 5,196 | 899 | 17,511 | 28,662 | |
Net gain on sale of subsidiaries | 0 | ||||
Total income | 55,874 | 15,382 | 150,623 | 64,160 | |
EXPENSES | |||||
Net incurred losses and loss adjustment expenses | (16,997) | (60,249) | (12,372) | (87,442) | |
Acquisition costs | 34 | 3,589 | 29,071 | 10,496 | |
General and administrative expenses | 64,138 | 52,466 | 91,729 | 75,853 | |
Total expenses | 47,175 | (4,194) | 108,428 | (1,093) | |
EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES | 8,699 | 19,576 | 42,195 | 65,253 | |
Earnings (loss) from equity method investments | 0 | 0 | 0 | 0 | |
SEGMENT INCOME (LOSS) | 8,699 | 19,576 | 42,195 | 65,253 | |
Increase (decrease) in general and administrative expense | 16,300 | 13,600 | |||
Operating Segments | Investments | |||||
INCOME | |||||
Net premiums earned | 0 | 0 | 0 | 0 | |
Fees and commission income | 0 | 0 | 0 | 0 | |
Net investment income | 75,859 | 86,263 | 137,190 | 151,226 | |
Net realized and unrealized gains | 405,010 | 926,494 | 385,531 | 351,812 | |
Other income (expense) | 0 | 0 | 0 | 0 | |
Net gain on sale of subsidiaries | 0 | ||||
Total income | 480,869 | 1,012,757 | 522,721 | 503,038 | |
EXPENSES | |||||
Net incurred losses and loss adjustment expenses | 0 | 0 | 0 | 0 | |
Acquisition costs | 0 | 0 | 0 | 0 | |
General and administrative expenses | 12,303 | 10,704 | 15,843 | 14,268 | |
Total expenses | 12,303 | 10,704 | 15,843 | 14,268 | |
EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES | 468,566 | 1,002,053 | 506,878 | 488,770 | |
Earnings (loss) from equity method investments | (3,059) | (8,790) | 114,972 | 3,660 | |
SEGMENT INCOME (LOSS) | 465,507 | 993,263 | 621,850 | 492,430 | |
Increase (decrease) in general and administrative expense | 2,600 | 2,500 | |||
Operating Segments | Legacy Underwriting | |||||
INCOME | |||||
Net premiums earned | 17,240 | 132,354 | 37,280 | 275,675 | |
Fees and commission income | 0 | 6,044 | 0 | 8,587 | |
Net investment income | 288 | 8,180 | 1,046 | 17,931 | |
Net realized and unrealized gains | 210 | 41,114 | (1,099) | (13,265) | |
Other income (expense) | (2,549) | 30 | (9,067) | 150 | |
Net gain on sale of subsidiaries | 0 | ||||
Total income | 15,189 | 187,722 | 28,160 | 289,078 | |
EXPENSES | |||||
Net incurred losses and loss adjustment expenses | 10,281 | 95,382 | 14,759 | 200,913 | |
Acquisition costs | 4,922 | 45,478 | 9,899 | 84,614 | |
General and administrative expenses | 1,418 | 70,062 | 3,502 | 96,120 | |
Total expenses | 16,621 | 210,922 | 28,160 | 381,647 | |
EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES | (1,432) | (23,200) | 0 | (92,569) | |
Earnings (loss) from equity method investments | 0 | 0 | 0 | 0 | |
SEGMENT INCOME (LOSS) | (1,432) | (23,200) | 0 | (92,569) | |
Corporate & Other | |||||
INCOME | |||||
Net premiums earned | 0 | 0 | 0 | 0 | |
Fees and commission income | 0 | 0 | 0 | 0 | |
Net investment income | 0 | 0 | 0 | 0 | |
Net realized and unrealized gains | 0 | 0 | 0 | 0 | |
Other income (expense) | (6,006) | (2,016) | (11,252) | (9,455) | |
Net gain on sale of subsidiaries | 14,894 | ||||
Total income | (6,006) | (2,016) | 3,642 | (9,455) | |
EXPENSES | |||||
Net incurred losses and loss adjustment expenses | 46,020 | 151,559 | (18,590) | 116,521 | |
Acquisition costs | 0 | 0 | 0 | 0 | |
General and administrative expenses | 14,858 | 11,598 | 64,643 | 57,017 | |
Total expenses | 60,878 | 163,157 | 46,053 | 173,538 | |
EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES | (66,884) | (165,173) | (42,411) | (182,993) | |
Earnings (loss) from equity method investments | 0 | 0 | 0 | 0 | |
SEGMENT INCOME (LOSS) | (66,884) | (165,173) | (42,411) | (182,993) | |
Interest expense | (16,301) | (14,018) | (32,480) | (27,433) | |
Net foreign exchange gains (losses) | 9,139 | (5,158) | 6,505 | 6,781 | |
Income tax expense | (9,422) | (16,652) | (3,440) | (11,380) | |
Net loss from discontinued operations, net of income taxes | (1,152) | (3,221) | |||
Net (earnings) loss attributable to noncontrolling interest | (3,055) | 19,992 | (13,846) | 52,714 | |
Dividends on preferred shares | (8,925) | (8,925) | (17,850) | (17,850) | |
NET EARNINGS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | (95,448) | (191,086) | $ (103,522) | $ (183,382) | |
Increase (decrease) in general and administrative expense | $ (18,900) | $ (16,100) | |||
[1] | Includes amounts attributed to the InRe Fund, refer to Note 11 - "Variable Interest Entities" for additional information. |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 01, 2021 | Jul. 22, 2021 | Jul. 01, 2021 | Aug. 05, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jul. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | Aug. 04, 2021 | Jul. 27, 2021 | Feb. 05, 2021 | Dec. 31, 2020 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||||||||||||||||
Total Liabilities Assumed | $ 4,950,325 | $ 4,950,325 | |||||||||||||||
Shares repurchased (in shares) | 30,364 | 48,367 | |||||||||||||||
Shares repurchased, value | $ 7,200 | $ 11,433 | $ 12,526 | ||||||||||||||
Average price per share repurchased (in dollars per share) | $ 237.39 | $ 236.39 | |||||||||||||||
Total dividends paid | $ 17,850 | 17,850 | |||||||||||||||
Scenario, Forecast | Enhanzed Re | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Percentage of stock to be acquired | 27.70% | ||||||||||||||||
Equity interest percentage before acquisition | 47.40% | ||||||||||||||||
Total equity interest, as a percentage | 75.10% | ||||||||||||||||
Capital commitment assumed | $ 40,200 | ||||||||||||||||
CNA | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Total Liabilities Assumed | $ 757,215 | ||||||||||||||||
Series D Preferred Shares (issued and outstanding 2021 and 2020: 16,000) | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Total dividends paid | $ 7,000 | $ 7,000 | 14,000 | 14,000 | |||||||||||||
Series D Preferred Shares (issued and outstanding 2021 and 2020: 16,000) | Scenario, Forecast | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Total dividends paid | $ 7,000 | ||||||||||||||||
Series E Preferred Shares (issued and outstanding 2021 and 2020: 4,400) | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Total dividends paid | $ 1,900 | $ 1,900 | $ 3,900 | $ 3,900 | |||||||||||||
Series E Preferred Shares (issued and outstanding 2021 and 2020: 4,400) | Scenario, Forecast | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Total dividends paid | $ 1,900 | ||||||||||||||||
Affiliated Entity | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Ownership % | 47.40% | 47.40% | 47.40% | ||||||||||||||
2018 EGL Revolving Credit Facility | Line of Credit | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Line of credit facility, remaining borrowing capacity | $ 425,000 | $ 425,000 | |||||||||||||||
Enhanzed Re | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Ownership % | 47.40% | 47.40% | 47.40% | ||||||||||||||
Enhanzed Re | Scenario, Forecast | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Payments to acquire investments | $ 228,700 | ||||||||||||||||
Monument Re | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Ownership % | 22.50% | 22.50% | 23.00% | ||||||||||||||
Ownership percentage | 20.00% | 20.00% | |||||||||||||||
Monument Re | Scenario, Forecast | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Subscription agreement, percentage of preferred shares owned | 13.20% | ||||||||||||||||
Subsequent Event | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Total Liabilities Assumed | $ 597,222 | ||||||||||||||||
Subsequent Event | Repurchase Program | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Shares repurchased (in shares) | 45,311 | ||||||||||||||||
Shares repurchased, value | $ 10,700 | ||||||||||||||||
Subsequent Event | Funds Managed by Hillhouse Group | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Shares repurchased (in shares) | 3,749,400 | ||||||||||||||||
Shares repurchased, value | $ 879,300 | ||||||||||||||||
Average price per share repurchased (in dollars per share) | $ 234.52 | ||||||||||||||||
Subsequent Event | InRe Fund | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Redemption notice, amount | $ 700,000 | ||||||||||||||||
Amount redeemed | $ 1,500,000 | ||||||||||||||||
Subsequent Event | RSA | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Total Liabilities Assumed | $ 97,222 | ||||||||||||||||
Subsequent Event | ProSight | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Total Liabilities Assumed | $ 500,000 | ||||||||||||||||
Subsequent Event | CNA | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Percentage ceded | 10.00% | ||||||||||||||||
Subsequent Event | 2018 EGL Revolving Credit Facility | Line of Credit | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Additional borrowings | 300,000 | ||||||||||||||||
Line of credit facility, remaining borrowing capacity | $ 125,000 | ||||||||||||||||
Hillhouse Affiliates | Affiliated Entity | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Economic interest percentage | 16.90% | 16.90% | |||||||||||||||
Ownership percentage | 9.40% | 9.40% | |||||||||||||||
Stone Point Capital | Monument Re | Scenario, Forecast | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Subscription agreement, percentage of preferred shares owned | 11.40% | ||||||||||||||||
Enhanzed Re | Allianz | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Ownership % | 24.90% | ||||||||||||||||
Enhanzed Re | Allianz | Scenario, Forecast | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Ownership % | 24.90% |