Price | 67.77 | EPS | -2 | |
Shares | 81 | P/E | -28 | |
MCap | 5,456 | P/FCF | 11 | |
Net Debt | -221 | EBIT | -141 | |
TEV | 5,235 | TEV/EBIT | -37 | TTM 2018-06-30, in MM, except price, ratios |
10-Q | 2018-06-30 | Filed 2018-07-27 |
10-Q | 2018-03-31 | Filed 2018-05-02 |
10-K | 2017-12-31 | Filed 2018-02-28 |
10-Q | 2017-11-02 | Filed 2017-11-02 |
10-Q | 2017-06-30 | Filed 2017-08-02 |
10-Q | 2017-03-31 | Filed 2017-05-05 |
10-K | 2016-12-31 | Filed 2017-02-23 |
10-Q | 2016-09-30 | Filed 2016-11-03 |
10-Q | 2016-06-30 | Filed 2016-08-05 |
10-Q | 2016-03-31 | Filed 2016-05-06 |
10-K | 2015-12-31 | Filed 2016-02-22 |
10-Q | 2015-09-30 | Filed 2015-11-06 |
10-Q | 2015-06-30 | Filed 2015-08-07 |
10-Q | 2015-03-31 | Filed 2015-05-08 |
10-K | 2014-12-31 | Filed 2015-02-24 |
10-Q | 2014-09-30 | Filed 2014-11-07 |
10-Q | 2014-06-30 | Filed 2014-08-07 |
10-Q | 2014-03-31 | Filed 2014-05-02 |
10-K | 2013-12-31 | Filed 2014-02-19 |
10-Q | 2013-09-30 | Filed 2013-11-08 |
10-Q | 2013-06-30 | Filed 2013-08-08 |
10-Q | 2013-03-31 | Filed 2013-05-06 |
10-K | 2012-12-31 | Filed 2013-02-15 |
10-Q | 2012-09-30 | Filed 2012-11-06 |
10-Q | 2012-06-30 | Filed 2012-08-01 |
10-Q | 2012-03-31 | Filed 2012-05-03 |
10-K | 2011-12-31 | Filed 2012-02-17 |
10-Q | 2011-09-30 | Filed 2011-11-04 |
10-Q | 2011-06-30 | Filed 2011-08-05 |
10-Q | 2011-03-31 | Filed 2011-05-06 |
10-K | 2010-12-31 | Filed 2011-02-18 |
10-Q | 2010-09-30 | Filed 2010-11-05 |
10-Q | 2010-06-30 | Filed 2010-08-06 |
10-Q | 2010-03-31 | Filed 2010-05-07 |
10-K | 2009-12-31 | Filed 2010-03-01 |
8-K | 2018-07-26 | |
8-K | 2018-07-18 | |
8-K | 2018-05-30 | |
8-K | 2018-05-01 | |
8-K | 2018-04-27 | |
8-K | 2018-03-02 | |
8-K | 2018-02-28 | |
8-K | 2018-02-28 | |
8-K | 2018-02-01 | |
8-K | 2018-01-21 |
Part I. Financial Information |
Item 1. Financial Statements |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |
Item 3. Quantitative and Qualitative Disclosures About Market Risk |
Item 4. Controls and Procedures |
Part II. Other Information |
Item 1. Legal Proceedings |
Item 1A. Risk Factors |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. Defaults Upon Senior Securities |
Item 4. Mine Safety Disclosure |
Item 5. Other Information |
Item 6. Exhibits |
EX-31.1 | a20180630-exhibit311.htm |
EX-31.2 | a20180630-exhibit312.htm |
EX-32 | a20180630-exhibit32.htm |
Balance Sheet | Income Statement | Cash Flow |
---|---|---|
Assets, Equity
|
Rev, G Profit, Net Income
|
Ops, Inv, Fin
|
BERMUDA | 98-0501001 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
Large accelerated filer | x | Accelerated filer | o |
Non-accelerated filer | o | (Do not check if a smaller reporting company) | |
Smaller reporting company | o | ||
Emerging growth company | o |
Page | |
Table of Contents | Page | |
June 30, 2018 | December 31, 2017 | ||||||
(unaudited) | |||||||
Assets | |||||||
Fixed maturity investments trading, at fair value (amortized cost: 2018—$5,651,953; 2017—$5,876,261) | $ | 5,559,953 | $ | 5,858,348 | |||
Short-term investments trading, at fair value (amortized cost: 2018—$3,728,930; 2017—$3,381,714) | 3,728,894 | 3,381,757 | |||||
Other investments, at fair value (cost: 2018—$341,883; 2017—$330,416) | 366,184 | 355,218 | |||||
Investments in investment affiliates, equity method (cost: 2018—$72,135; 2017—$61,944) | 127,247 | 100,137 | |||||
Cash and cash equivalents | 719,219 | 754,990 | |||||
Restricted cash | 286,279 | 394,663 | |||||
Total investments and cash | 10,787,776 | 10,845,113 | |||||
Premiums receivable | 1,947,462 | 939,487 | |||||
Deferred acquisition costs | 317,834 | 213,816 | |||||
Prepaid reinsurance premiums | 336,384 | 132,938 | |||||
Securities lending collateral | 2,117 | 2,717 | |||||
Loss reserves recoverable | 970,950 | 1,233,997 | |||||
Paid losses recoverable | 71,876 | 46,873 | |||||
Income taxes recoverable | 11,023 | 9,044 | |||||
Deferred tax asset | 60,438 | 52,467 | |||||
Receivable for investments sold | 15,662 | 12,182 | |||||
Intangible assets | 167,052 | 171,411 | |||||
Goodwill | 229,573 | 229,573 | |||||
Accrued investment income | 31,082 | 29,096 | |||||
Other assets | 549,841 | 508,165 | |||||
Total assets | $ | 15,499,070 | $ | 14,426,879 | |||
Liabilities | |||||||
Reserve for losses and loss expenses | $ | 4,699,599 | $ | 4,831,390 | |||
Unearned premiums | 2,190,884 | 1,147,186 | |||||
Reinsurance balances payable | 406,081 | 331,645 | |||||
Securities lending payable | 2,117 | 2,717 | |||||
Deferred tax liability | 2,142 | 4,600 | |||||
Payable for investments purchased | 60,275 | 74,496 | |||||
Accounts payable and accrued expenses | 576,260 | 1,225,875 | |||||
Notes payable to AlphaCat investors | 1,206,671 | 1,108,364 | |||||
Senior notes payable | 245,664 | 245,564 | |||||
Debentures payable | 538,751 | 539,158 | |||||
Total liabilities | 9,928,444 | 9,510,995 | |||||
Commitments and contingent liabilities | |||||||
Redeemable noncontrolling interests | 1,390,233 | 1,004,094 | |||||
Shareholders’ equity | |||||||
Preferred shares (Issued and Outstanding: 2018—16,000; 2017—16,000) | 400,000 | 400,000 | |||||
Common shares (Issued: 2018—163,186,889; 2017—161,994,491; Outstanding: 2018—80,511,948; 2017—79,319,550) | 28,558 | 28,349 | |||||
Treasury shares (2018—82,674,941; 2017—82,674,941) | (14,468 | ) | (14,468 | ) | |||
Additional paid-in capital | 816,282 | 814,641 | |||||
Accumulated other comprehensive income (loss) | 9,859 | (22,192 | ) | ||||
Retained earnings | 2,568,905 | 2,688,742 | |||||
Total shareholders’ equity available to Validus | 3,809,136 | 3,895,072 | |||||
Noncontrolling interests | 371,257 | 16,718 | |||||
Total shareholders’ equity | 4,180,393 | 3,911,790 | |||||
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 15,499,070 | $ | 14,426,879 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Revenues | |||||||||||||||
Gross premiums written | $ | 847,206 | $ | 792,902 | $ | 2,679,662 | $ | 1,983,759 | |||||||
Reinsurance premiums ceded | (107,567 | ) | (56,222 | ) | (483,861 | ) | (256,328 | ) | |||||||
Net premiums written | 739,639 | 736,680 | 2,195,801 | 1,727,431 | |||||||||||
Change in unearned premiums | (3,032 | ) | (105,653 | ) | (840,252 | ) | (521,028 | ) | |||||||
Net premiums earned | 736,607 | 631,027 | 1,355,549 | 1,206,403 | |||||||||||
Net investment income | 57,560 | 44,241 | 109,632 | 84,455 | |||||||||||
Net realized (losses) gains on investments | (7,394 | ) | 2,274 | (5,194 | ) | 1,110 | |||||||||
Change in net unrealized (losses) gains on investments | (10,730 | ) | 16,321 | (68,111 | ) | 29,669 | |||||||||
Income from investment affiliates | 2,178 | 9,466 | 15,246 | 14,654 | |||||||||||
Other insurance related (loss) income and other (loss) income | (16,116 | ) | 1,339 | 9,424 | 2,669 | ||||||||||
Foreign exchange losses | (526 | ) | (7,329 | ) | (1 | ) | (5,760 | ) | |||||||
Total revenues | 761,579 | 697,339 | 1,416,545 | 1,333,200 | |||||||||||
Expenses | |||||||||||||||
Losses and loss expenses | 476,610 | 296,149 | 798,155 | 565,734 | |||||||||||
Policy acquisition costs | 118,781 | 117,268 | 235,237 | 228,896 | |||||||||||
General and administrative expenses | 120,862 | 96,349 | 235,588 | 184,273 | |||||||||||
Share compensation expenses | 16,040 | 11,146 | 25,769 | 20,637 | |||||||||||
Finance expenses | 14,310 | 14,209 | 28,573 | 28,152 | |||||||||||
Transaction expenses | 3,837 | 4,427 | 11,593 | 4,427 | |||||||||||
Total expenses | 750,440 | 539,548 | 1,334,915 | 1,032,119 | |||||||||||
Income before taxes and (income) attributable to AlphaCat investors | 11,139 | 157,791 | 81,630 | 301,081 | |||||||||||
Tax benefit | 7,151 | 987 | 13,984 | 4,536 | |||||||||||
(Income) attributable to AlphaCat investors | (29,849 | ) | (11,830 | ) | (40,711 | ) | (19,333 | ) | |||||||
Net (loss) income | (11,559 | ) | 146,948 | 54,903 | 286,284 | ||||||||||
Net (income) attributable to noncontrolling interests | (35,511 | ) | (43,650 | ) | (100,223 | ) | (86,222 | ) | |||||||
Net (loss) income (attributable) available to Validus | (47,070 | ) | 103,298 | (45,320 | ) | 200,062 | |||||||||
Dividends on preferred shares | (5,828 | ) | (2,203 | ) | (11,656 | ) | (4,406 | ) | |||||||
Net (loss) income (attributable) available to Validus common shareholders | $ | (52,898 | ) | $ | 101,095 | $ | (56,976 | ) | $ | 195,656 | |||||
Comprehensive (loss) income: | |||||||||||||||
Net (loss) income | $ | (11,559 | ) | $ | 146,948 | $ | 54,903 | $ | 286,284 | ||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Change in foreign currency translation adjustments | (2,737 | ) | 1,489 | (900 | ) | 2,086 | |||||||||
Change in minimum pension liability | 342 | 1,184 | 304 | 1,252 | |||||||||||
Change in fair value of cash flow hedges | 3,035 | (144 | ) | 31,798 | (46 | ) | |||||||||
Other comprehensive income, net of tax | 640 | 2,529 | 31,202 | 3,292 | |||||||||||
Comprehensive (income) attributable to noncontrolling interests | (35,511 | ) | (43,650 | ) | (100,223 | ) | (86,222 | ) | |||||||
Comprehensive (loss) income (attributable) available to Validus | $ | (46,430 | ) | $ | 105,827 | $ | (14,118 | ) | $ | 203,354 | |||||
(Loss) earnings per common share | |||||||||||||||
Basic (loss) earnings per share (attributable) available to Validus common shareholders | $ | (0.66 | ) | $ | 1.28 | $ | (0.72 | ) | $ | 2.47 | |||||
(Loss) earnings per diluted share (attributable) available to Validus common shareholders | $ | (0.66 | ) | $ | 1.25 | $ | (0.72 | ) | $ | 2.42 | |||||
Cash dividends declared per common share | $ | 0.38 | $ | 0.38 | $ | 0.76 | $ | 0.76 | |||||||
Weighted average number of common shares and common share equivalents outstanding: | |||||||||||||||
Basic | 79,650,474 | 79,270,561 | 79,488,081 | 79,202,116 | |||||||||||
Diluted | 79,650,474 | 80,872,451 | 79,488,081 | 80,861,998 |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
(unaudited) | |||||||
Preferred shares | |||||||
Balance, beginning of period | $ | 400,000 | $ | 150,000 | |||
Preferred shares issued | — | 250,000 | |||||
Balance, end of period | $ | 400,000 | $ | 400,000 | |||
Common shares | |||||||
Balance, beginning of period | $ | 28,349 | $ | 28,224 | |||
Common shares issued, net | 209 | 115 | |||||
Balance, end of period | $ | 28,558 | $ | 28,339 | |||
Treasury shares | |||||||
Balance, beginning of period | $ | (14,468 | ) | $ | (14,376 | ) | |
Repurchase of common shares | — | (47 | ) | ||||
Balance, end of period | $ | (14,468 | ) | $ | (14,423 | ) | |
Additional paid-in capital | |||||||
Balance, beginning of period | $ | 814,641 | $ | 821,023 | |||
Offering expenses on preferred shares | — | (8,314 | ) | ||||
Common shares redeemed, net | (24,128 | ) | (12,076 | ) | |||
Repurchase of common shares | — | (13,949 | ) | ||||
Share compensation expenses | 25,769 | 20,637 | |||||
Balance, end of period | $ | 816,282 | $ | 807,321 | |||
Accumulated other comprehensive income (loss) | |||||||
Balance, beginning of period | $ | (22,192 | ) | $ | (23,216 | ) | |
Other comprehensive income | 31,202 | 3,292 | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | 849 | — | |||||
Balance, end of period | $ | 9,859 | $ | (19,924 | ) | ||
Retained earnings | |||||||
Balance, beginning of period | $ | 2,688,742 | $ | 2,876,636 | |||
Net income | 54,903 | 286,284 | |||||
Net (income) attributable to noncontrolling interests | (100,223 | ) | (86,222 | ) | |||
Dividends on common shares | (62,861 | ) | (62,174 | ) | |||
Dividends on preferred shares | (11,656 | ) | (4,406 | ) | |||
Balance, end of period | $ | 2,568,905 | $ | 3,010,118 | |||
Total shareholders’ equity available to Validus | $ | 3,809,136 | $ | 4,211,431 | |||
Noncontrolling interests | 371,257 | 415,658 | |||||
Total shareholders’ equity | $ | 4,180,393 | $ | 4,627,089 |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
(unaudited) | |||||||
Cash flows provided by (used in) operating activities | |||||||
Net income | $ | 54,903 | $ | 286,284 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Share compensation expenses | 25,769 | 20,637 | |||||
Loss on redemption of AlphaCat ILS fund | — | 402 | |||||
Amortization of discount on Senior Notes | 54 | 54 | |||||
(Income) from investment and operating affiliates | (15,246 | ) | (14,654 | ) | |||
Net realized and change in net unrealized losses (gains) on investments | 73,305 | (30,779 | ) | ||||
Amortization of intangible assets | 4,359 | 3,995 | |||||
Foreign exchange losses (gains) included in net income | 8,837 | (9,686 | ) | ||||
Amortization of premium on fixed maturity investments | 6,853 | 7,012 | |||||
Change in operational balance sheet items: | |||||||
Premiums receivable | (1,010,121 | ) | (648,195 | ) | |||
Deferred acquisition costs | (104,018 | ) | (97,746 | ) | |||
Prepaid reinsurance premiums | (203,446 | ) | (30,684 | ) | |||
Loss reserves recoverable | 261,992 | (113,508 | ) | ||||
Paid losses recoverable | (24,994 | ) | 17,500 | ||||
Reserve for losses and loss expenses | (125,377 | ) | 199,985 | ||||
Unearned premiums | 1,043,698 | 488,198 | |||||
Reinsurance balances payable | 75,018 | 111,488 | |||||
Other operational balance sheet items, net | 91,562 | (137,618 | ) | ||||
Net cash provided by operating activities | 163,148 | 52,685 | |||||
Cash flows provided by (used in) investing activities | |||||||
Proceeds on sales of fixed maturity investments | 1,739,391 | 1,632,371 | |||||
Proceeds on maturities of fixed maturity investments | 316,335 | 247,394 | |||||
Purchases of fixed maturity investments | (1,867,720 | ) | (1,682,609 | ) | |||
Purchases of short-term investments, net | (347,138 | ) | (88,623 | ) | |||
Purchases of other investments, net | (12,487 | ) | (33,870 | ) | |||
Decrease in securities lending collateral | 600 | 7,265 | |||||
(Investments in) distributions from investment affiliates, net | (11,864 | ) | 11,708 | ||||
Purchase of subsidiary, net of cash | — | (183,923 | ) | ||||
Net cash used in investing activities | (182,883 | ) | (90,287 | ) | |||
Cash flows provided by (used in) financing activities | |||||||
Net proceeds on issuance of notes payable to AlphaCat investors | 98,720 | 269,645 | |||||
Net proceeds on issuance of preferred shares | — | 241,686 | |||||
Redemption of common shares, net | (23,919 | ) | (11,961 | ) | |||
Purchases of common shares under share repurchase program | — | (13,996 | ) | ||||
Dividends paid on preferred shares | (11,656 | ) | (4,406 | ) | |||
Dividends paid on common shares | (68,518 | ) | (63,286 | ) | |||
Decrease in securities lending payable | (600 | ) | (7,265 | ) | |||
Third party investments in redeemable noncontrolling interests | 466,550 | 210,200 | |||||
Third party redemptions of redeemable noncontrolling interests | (233,478 | ) | (79,334 | ) | |||
Third party investments in noncontrolling interests | 321,900 | 258,300 | |||||
Third party distributions of noncontrolling interests | (20,118 | ) | (96,125 | ) | |||
Third party subscriptions deployed on funds and sidecars, net | (645,233 | ) | (171,952 | ) | |||
Net cash (used in) provided by financing activities | (116,352 | ) | 531,506 | ||||
Effect of foreign currency rate changes on cash and cash equivalents and restricted cash | (8,068 | ) | 10,608 | ||||
Net (decrease) increase in cash and cash equivalents and restricted cash | (144,155 | ) | 504,512 | ||||
Cash and cash equivalents and restricted cash—beginning of period | 1,149,653 | 490,932 | |||||
Cash and cash equivalents and restricted cash—end of period | $ | 1,005,498 | $ | 995,444 | |||
Supplemental disclosure of cash flow information: | |||||||
Taxes paid during the year | $ | 868 | $ | 568 | |||
Interest paid during the year | $ | 25,090 | $ | 27,186 |
June 30, 2018 | December 31, 2017 | ||||||||||||||
Amortized Cost or Cost | Fair Value | Amortized Cost or Cost | Fair Value | ||||||||||||
Managed investments | |||||||||||||||
U.S. government and government agency | $ | 613,130 | $ | 604,392 | $ | 733,510 | $ | 727,397 | |||||||
Non-U.S. government and government agency | 285,514 | 282,263 | 310,845 | 312,239 | |||||||||||
U.S. states, municipalities and political subdivisions | 191,065 | 189,437 | 201,347 | 201,303 | |||||||||||
Agency residential mortgage-backed securities | 956,254 | 929,859 | 984,387 | 978,049 | |||||||||||
Non-agency residential mortgage-backed securities | 48,061 | 47,600 | 40,264 | 40,373 | |||||||||||
U.S. corporate | 1,459,190 | 1,436,885 | 1,531,498 | 1,533,395 | |||||||||||
Non-U.S. corporate | 410,287 | 403,385 | 420,522 | 422,249 | |||||||||||
Bank loans | 480,593 | 471,212 | 450,320 | 442,951 | |||||||||||
Asset-backed securities | 719,803 | 714,434 | 657,234 | 658,303 | |||||||||||
Commercial mortgage-backed securities | 309,080 | 301,544 | 315,002 | 312,395 | |||||||||||
Total fixed maturities | 5,472,977 | 5,381,011 | 5,644,929 | 5,628,654 | |||||||||||
Short-term investments | 218,071 | 218,035 | 229,968 | 230,011 | |||||||||||
Other investments | |||||||||||||||
Hedge funds | 6,954 | 15,888 | 6,954 | 15,774 | |||||||||||
Private equity investments | 64,921 | 79,185 | 63,684 | 78,407 | |||||||||||
Fixed income investment funds | 208,400 | 209,503 | 203,167 | 204,426 | |||||||||||
Overseas deposits | 61,608 | 61,608 | 56,611 | 56,611 | |||||||||||
Total other investments | 341,883 | 366,184 | 330,416 | 355,218 | |||||||||||
Investments in investment affiliates (a) | 72,135 | 127,247 | 61,944 | 100,137 | |||||||||||
Total managed investments | $ | 6,105,066 | $ | 6,092,477 | $ | 6,267,257 | $ | 6,314,020 | |||||||
Non-managed investments | |||||||||||||||
Catastrophe bonds | $ | 178,976 | $ | 178,942 | $ | 231,332 | $ | 229,694 | |||||||
Short-term investments | 3,510,859 | 3,510,859 | 3,151,746 | 3,151,746 | |||||||||||
Total non-managed investments | 3,689,835 | 3,689,801 | 3,383,078 | 3,381,440 | |||||||||||
Total investments | $ | 9,794,901 | $ | 9,782,278 | $ | 9,650,335 | $ | 9,695,460 |
(a) | The Company’s investments in investment affiliates have been treated as equity method investments with the corresponding gains and losses recorded in income as “Income from investment affiliates.” |
(a) | Fixed maturity investments |
June 30, 2018 | December 31, 2017 | ||||||||||||
Fair Value | % of Total | Fair Value | % of Total | ||||||||||
Managed fixed maturities | |||||||||||||
AAA | $ | 2,560,857 | 46.2 | % | $ | 2,715,074 | 46.4 | % | |||||
AA | 417,814 | 7.5 | % | 442,397 | 7.6 | % | |||||||
A | 1,102,419 | 19.8 | % | 1,137,795 | 19.4 | % | |||||||
BBB | 797,698 | 14.3 | % | 828,392 | 14.1 | % | |||||||
Total investment grade managed fixed maturities | 4,878,788 | 87.8 | % | 5,123,658 | 87.5 | % | |||||||
BB | 157,241 | 2.8 | % | 168,967 | 2.9 | % | |||||||
B | 227,954 | 4.1 | % | 237,131 | 4.0 | % | |||||||
CCC | 20,219 | 0.4 | % | 18,217 | 0.3 | % | |||||||
CC | 564 | — | % | — | — | % | |||||||
NR | 96,245 | 1.7 | % | 80,681 | 1.4 | % | |||||||
Total non-investment grade managed fixed maturities | 502,223 | 9.0 | % | 504,996 | 8.6 | % | |||||||
Total managed fixed maturities | $ | 5,381,011 | 96.8 | % | $ | 5,628,654 | 96.1 | % | |||||
Non-managed catastrophe bonds | |||||||||||||
AAA | $ | 250 | — | % | $ | — | — | % | |||||
Total investment grade non-managed catastrophe bonds | 250 | — | % | — | — | % | |||||||
BB | $ | 6,632 | 0.2 | % | $ | 22,110 | 0.3 | % | |||||
B | 2,626 | — | % | 3,265 | 0.1 | % | |||||||
NR | 169,434 | 3.0 | % | 204,319 | 3.5 | % | |||||||
Total non-investment grade non-managed catastrophe bonds | 178,692 | 3.2 | % | 229,694 | 3.9 | % | |||||||
Total non-managed catastrophe bonds | 178,942 | 3.2 | % | 229,694 | 3.9 | % | |||||||
Total fixed maturities | $ | 5,559,953 | 100.0 | % | $ | 5,858,348 | 100.0 | % |
June 30, 2018 | December 31, 2017 | ||||||||||||||
Amortized Cost or Cost | Fair Value | Amortized Cost or Cost | Fair Value | ||||||||||||
Managed fixed maturities | |||||||||||||||
Due in one year or less | $ | 361,061 | $ | 359,094 | $ | 343,360 | $ | 343,541 | |||||||
Due after one year through five years | 2,333,731 | 2,295,728 | 2,527,018 | 2,513,620 | |||||||||||
Due after five years through ten years | 556,784 | 547,685 | 577,347 | 577,109 | |||||||||||
Due after ten years | 188,203 | 185,067 | 200,317 | 205,264 | |||||||||||
3,439,779 | 3,387,574 | 3,648,042 | 3,639,534 | ||||||||||||
Asset-backed and mortgage-backed securities | 2,033,198 | 1,993,437 | 1,996,887 | 1,989,120 | |||||||||||
Total managed fixed maturities | $ | 5,472,977 | $ | 5,381,011 | $ | 5,644,929 | $ | 5,628,654 | |||||||
Non-managed catastrophe bonds | |||||||||||||||
Due in one year or less | $ | 47,918 | $ | 46,922 | $ | 88,797 | $ | 88,367 | |||||||
Due after one year through five years | 130,433 | 131,395 | 140,035 | 138,844 | |||||||||||
Due after five years through ten years | 625 | 625 | 2,500 | 2,483 | |||||||||||
Total non-managed catastrophe bonds | 178,976 | 178,942 | 231,332 | 229,694 | |||||||||||
Total fixed maturities | $ | 5,651,953 | $ | 5,559,953 | $ | 5,876,261 | $ | 5,858,348 |
(b) | Other investments |
June 30, 2018 | ||||||||||||||||
Fair Value | Investments with redemption restrictions | Investments without redemption restrictions | Redemption frequency (a) | Redemption notice period (a) | ||||||||||||
Hedge funds | $ | 15,888 | $ | 15,888 | $ | — | ||||||||||
Private equity investments | 79,185 | 79,185 | — | |||||||||||||
Fixed income investment funds | 209,503 | 209,503 | — | |||||||||||||
Overseas deposits | 61,608 | 61,608 | — | |||||||||||||
Total other investments | $ | 366,184 | $ | 366,184 | $ | — |
December 31, 2017 | ||||||||||||||||
Fair Value | Investments with redemption restrictions | Investments without redemption restrictions | Redemption frequency (a) | Redemption notice period (a) | ||||||||||||
Hedge funds | 15,774 | 15,774 | — | |||||||||||||
Private equity investments | 78,407 | 78,407 | — | |||||||||||||
Fixed income investment funds | 204,426 | 200,532 | 3,894 | Daily | Daily to 2 days | |||||||||||
Overseas deposits | 56,611 | 56,611 | — | |||||||||||||
Total other investments | $ | 355,218 | $ | 351,324 | $ | 3,894 |
(c) | Investments in investment affiliates |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Investment affiliates, beginning of period | $ | 113,471 | $ | 94,697 | $ | 100,137 | $ | 100,431 | |||||||
Net capital contributions (distributions) | 11,598 | (786 | ) | 11,864 | (11,708 | ) | |||||||||
Income from investment affiliates | 2,178 | 9,466 | 15,246 | 14,654 | |||||||||||
Investment affiliates, end of period | $ | 127,247 | $ | 103,377 | $ | 127,247 | $ | 103,377 |
June 30, 2018 | |||||||||||||
Investment at cost | Voting ownership % | Equity ownership % | Carrying value | ||||||||||
Aquiline II | $ | 28,529 | — | % | 8.1 | % | $ | 49,248 | |||||
Aquiline III | 25,501 | — | % | 9.0 | % | 59,900 | |||||||
Aquiline Tech | 4,406 | — | % | 10.6 | % | 4,400 | |||||||
Aquiline Armour | 13,699 | — | % | 15.2 | % | 13,699 | |||||||
Total investments in investment affiliates | $ | 72,135 | $ | 127,247 | |||||||||
December 31, 2017 | |||||||||||||
Investment at cost | Voting ownership % | Equity ownership % | Carrying value | ||||||||||
Aquiline II | $ | 33,349 | — | % | 8.1 | % | $ | 51,914 | |||||
Aquiline III | 24,737 | — | % | 9.0 | % | 44,733 | |||||||
Aquiline Tech | 3,858 | — | % | 10.6 | % | 3,490 | |||||||
Total investments in investment affiliates | $ | 61,944 | $ | 100,137 |
(d) | Net investment income |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Managed investments | |||||||||||||||
Fixed maturities and short-term investments | $ | 39,224 | $ | 31,212 | $ | 76,993 | $ | 62,883 | |||||||
Other investments | 4,846 | 7,571 | 9,069 | 14,441 | |||||||||||
Cash and cash equivalents and restricted cash | 1,744 | 716 | 2,883 | 1,326 | |||||||||||
Securities lending income | 4 | 7 | 7 | 20 | |||||||||||
Total gross investment income | 45,818 | 39,506 | 88,952 | 78,670 | |||||||||||
Investment expenses | (3,066 | ) | (1,443 | ) | (6,409 | ) | (4,415 | ) | |||||||
Total managed net investment income | $ | 42,752 | $ | 38,063 | $ | 82,543 | $ | 74,255 | |||||||
Non managed investments | |||||||||||||||
Fixed maturities and short-term investments | $ | 5,842 | $ | 4,500 | $ | 9,990 | $ | 7,560 | |||||||
Cash and cash equivalents and restricted cash | 8,966 | 1,678 | 17,099 | 2,640 | |||||||||||
Total non-managed net investment income | 14,808 | 6,178 | 27,089 | 10,200 | |||||||||||
Total net investment income | $ | 57,560 | $ | 44,241 | $ | 109,632 | $ | 84,455 |
(e) | Net realized (losses) gains and change in net unrealized (losses) gains on investments |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Managed investments | |||||||||||||||
Gross realized gains | $ | 3,048 | $ | 5,175 | $ | 9,878 | $ | 7,865 | |||||||
Gross realized (losses) | (10,480 | ) | (2,906 | ) | (16,168 | ) | (8,488 | ) | |||||||
Net realized (losses) gains on investments | (7,432 | ) | 2,269 | (6,290 | ) | (623 | ) | ||||||||
Change in net unrealized (losses) gains on investments | (11,392 | ) | 15,942 | (68,169 | ) | 30,291 | |||||||||
Total net realized and change in net unrealized (losses) gains on managed investments | $ | (18,824 | ) | $ | 18,211 | $ | (74,459 | ) | $ | 29,668 | |||||
Non-managed investments | |||||||||||||||
Gross realized gains | $ | 175 | $ | 5 | $ | 1,410 | $ | 1,733 | |||||||
Gross realized (losses) | (137 | ) | — | (314 | ) | — | |||||||||
Net realized gains on investments | 38 | 5 | 1,096 | 1,733 | |||||||||||
Change in net unrealized gains (losses) on investments | 662 | 379 | 58 | (622 | ) | ||||||||||
Total net realized and change in net unrealized gains on non-managed investments | 700 | 384 | 1,154 | 1,111 | |||||||||||
Total net realized and change in net unrealized (losses) gains on total investments | $ | (18,124 | ) | $ | 18,595 | $ | (73,305 | ) | $ | 30,779 |
(f) | Pledged investments and cash |
(a) | Classification within the fair value hierarchy |
Level 1 | Level 2 | Level 3 | Fair value based on NAV practical expedient (a) | Total | |||||||||||||||
Managed investments | |||||||||||||||||||
U.S. government and government agency | $ | — | $ | 604,392 | $ | — | $ | — | $ | 604,392 | |||||||||
Non-U.S. government and government agency | — | 282,263 | — | — | 282,263 | ||||||||||||||
U.S. states, municipalities and political subdivisions | — | 189,437 | — | — | 189,437 | ||||||||||||||
Agency residential mortgage-backed securities | — | 929,859 | — | — | 929,859 | ||||||||||||||
Non-agency residential mortgage-backed securities | — | 47,600 | — | — | 47,600 | ||||||||||||||