ARGO GROUP INTERNATIONAL HOLDINGS, LTD., 10-K filed on 2/26/2016
Annual Report
v3.3.1.900
Document and Entity Information - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Feb. 22, 2016
Jun. 30, 2015
Document And Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2015    
Document Fiscal Year Focus 2015    
Document Fiscal Period Focus FY    
Trading Symbol AGII    
Entity Registrant Name Argo Group International Holdings, Ltd.    
Entity Central Index Key 0001091748    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer Yes    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Filer Category Large Accelerated Filer    
Entity Common Stock, Shares Outstanding   27,611,357  
Entity Public Float     $ 1,532.6
v3.3.1.900
Consolidated Balance Sheets - USD ($)
Dec. 31, 2015
Dec. 31, 2014
Assets    
Available-for-sale (cost: 2015 - $2,971.0; 2014 - $2,817.2) $ 2,927,300,000 $ 2,840,700,000
Equity securities, at fair value (cost: 2015 - $349.7; 2014 - $324.8) 463,900,000 503,800,000
Other investments (cost: 2015 - $499.6; 2014 - $488.9) 513,700,000 495,100,000
Short-term investments, at fair value (cost: 2015 - $211.2; 2014 - $258.3) 210,800,000 258,300,000
Total investments 4,115,700,000 4,097,900,000
Cash 121,700,000 81,000,000
Accrued investment income 21,600,000 22,100,000
Premiums receivable 404,500,000 353,600,000
Reinsurance recoverables 1,121,100,000 997,200,000
Goodwill 152,200,000 152,200,000
Intangible assets, net of accumulated amortization 73,300,000 78,600,000
Current income taxes receivable, net 11,600,000 14,900,000
Deferred acquisition costs, net 132,400,000 124,600,000
Ceded unearned premiums 250,800,000 207,600,000
Other assets 225,200,000 226,600,000
Total assets 6,630,100,000 6,356,300,000
Liabilities and Shareholders' Equity    
Reserves for losses and loss adjustment expenses 3,123,600,000 3,042,400,000
Unearned premiums 886,700,000 817,200,000
Accrued underwriting expenses 133,900,000 143,100,000
Ceded reinsurance payable, net 312,400,000 178,800,000
Funds held 77,600,000 55,000,000
Senior unsecured fixed rate notes 143,800,000 143,800,000
Other indebtedness 55,200,000 62,000,000
Junior subordinated debentures 172,700,000 172,700,000
Deferred tax liabilities, net 23,600,000 53,000,000
Other liabilities 32,500,000 41,600,000
Total liabilities 4,962,000,000 4,709,600,000
Commitments and contingencies (Note 16) 0 0
Shareholders' equity:    
Common shares - $1.00 par, 500,000,000 shares authorized; 37,105,922 and 36,889,386 shares issued at December 31, 2015 and December 31, 2014, respectively 37,100,000 34,300,000
Additional paid-in capital 964,900,000 836,300,000
Treasury shares (9,181,644 and 8,606,489 shares at December 31, 2015 and December 31, 2014, respectively) (331,100,000) (301,400,000)
Retained earnings 985,700,000 969,400,000
Accumulated other comprehensive income, net of taxes 11,500,000 108,100,000
Total shareholders' equity 1,668,100,000 1,646,700,000
Total liabilities and shareholders' equity $ 6,630,100,000 $ 6,356,300,000
v3.3.1.900
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Statement Of Financial Position [Abstract]    
Available-for-sale cost $ 2,971.0 $ 2,817.2
Equity securities cost 349.7 324.8
Other investments cost 499.6 488.9
Short-term investments, Cost $ 211.2 $ 258.3
Common shares, par value $ 1.00 $ 1.00
Common shares, shares authorized 500,000,000 500,000,000
Common shares, shares issued 37,105,922 36,889,386
Treasury shares, shares 9,181,644 8,606,489
v3.3.1.900
Consolidated Statements of Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Premiums and other revenue:      
Earned premiums $ 1,371.9 $ 1,338.1 $ 1,303.8
Net investment income 85.6 86.6 100.0
Net realized investment and other gains 27.1 94.0 71.3
Total revenue 1,484.6 1,518.7 1,475.1
Expenses:      
Losses and loss adjustment expenses 766.1 747.4 742.0
Other reinsurance-related expenses 0.0 0.0 19.2
Underwriting, acquisition and insurance expenses 539.6 539.2 510.8
Interest expense 19.0 19.9 20.2
Fee and other expense, net 0.7 0.6 4.9
Foreign currency exchange gain (18.3) (7.8) (1.7)
Impairment of intangible assets 0.0 3.4 0.0
Total expenses 1,307.1 1,302.7 1,295.4
Income before income taxes 177.5 216.0 179.7
Provision for income taxes 14.3 32.8 36.5
Net income $ 163.2 $ 183.2 $ 143.2
Net income per common share:      
Basic $ 5.84 [1] $ 6.39 [1] $ 4.85
Diluted 5.72 [1] 6.27 [1] 4.67
Dividend declared per common share $ 0.80 $ 0.63 $ 0.54
Weighted average common shares:      
Basic 27,972,962 28,690,306 29,536,472
Diluted 28,533,299 29,212,848 30,656,483
Net realized investment and other gains before other-than-temporary impairment losses $ 39.0 $ 96.3 $ 79.1
Other-than-temporary impairment losses recognized in earnings:      
Other-than-temporary impairment losses on fixed maturities (2.2) (1.2) (6.0)
Other-than-temporary impairment losses on equity securities (9.7) (1.1) (1.8)
Impairment losses recognized in earnings (11.9) (2.3) (7.8)
Net realized investment and other gains $ 27.1 $ 94.0 $ 71.3
[1] Basic and diluted net income per common share are computed independently for each quarter and full year based on the respective average number of common shares outstanding; therefore, the sum of the quarterly net income per common share data may not equal the net income per common share for the year.
v3.3.1.900
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Statement Of Income And Comprehensive Income [Abstract]      
Net income $ 163.2 $ 183.2 $ 143.2
Other comprehensive income:      
Foreign currency translation adjustments (6.0) (4.1) (2.8)
Defined benefit pension plans:      
Net gain (loss) arising during the year 0.4 (3.7) 2.0
Unrealized (losses) gains on securities:      
(Losses) gains arising during the year (121.1) (5.7) 1.2
Reclassification adjustment for gains included in net income (7.2) (30.6) (59.8)
Other comprehensive loss before tax (133.9) (44.1) (59.4)
Defined benefit pension plans:      
Net gain (loss) arising during the year 0.3 (1.3) 0.7
Unrealized (loss) gains on securities:      
(Loss) gains arising during the year (31.3) 6.8 1.0
Reclassification adjustment for gains included in net income (6.3) (9.9) (19.4)
Income tax provision (benefit) related to other comprehensive loss (37.3) (4.4) (17.7)
Other comprehensive loss, net of tax (96.6) (39.7) (41.7)
Comprehensive income $ 66.6 $ 143.5 $ 101.5
v3.3.1.900
Consolidated Statements of Shareholders' Equity - USD ($)
$ in Millions
Total
Common Shares [Member]
Additional Paid-In Capital [Member]
Treasury Shares [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance at Dec. 31, 2012 $ 1,514.1 $ 31.4 $ 722.7 $ (205.5) $ 776.0 $ 189.5
Net income 143.2 0.0 0.0 0.0 143.2 0.0
Other comprehensive income, net of tax (41.7) 0.0 0.0 0.0 0.0 (41.7)
Repurchase of common shares (1,098,732, 1,048,144, and 575,115 at a weighted average price of $41.04, $48.48, and $51.58 for 2013, 2014, and 2015 respectively) (45.1) 0.0 0.0 (45.1) 0.0 0.0
Activity under stock incentive plans 8.7 0.2 8.5 0.0 0.0 0.0
Retirement of common shares (tax payments on equity compensation) (1.9) 0.0 (1.9) 0.0 0.0 0.0
Deferred tax - share-based payments 0.1 0.0 0.1 0.0 0.0 0.0
Employee stock purchase plan 1.4 0.1 1.3 0.0 0.0 0.0
10% stock dividend 0.0 2.4 96.6 0.0 (99.0) 0.0
Cash dividend declared - common shares (15.8) 0.0 0.0 0.0 (15.8) 0.0
Ending Balance at Dec. 31, 2013 1,563.0 34.1 827.3 (250.6) 804.4 147.8
Net income 183.2 0.0 0.0 0.0 183.2 0.0
Other comprehensive income, net of tax (39.7) 0.0 0.0 0.0 0.0 (39.7)
Repurchase of common shares (1,098,732, 1,048,144, and 575,115 at a weighted average price of $41.04, $48.48, and $51.58 for 2013, 2014, and 2015 respectively) (50.8) 0.0 0.0 (50.8) 0.0 0.0
Activity under stock incentive plans 8.7 0.2 8.5 0.0 0.0 0.0
Retirement of common shares (tax payments on equity compensation) (1.1) 0.0 (1.1) 0.0 0.0 0.0
Deferred tax - share-based payments 0.1 0.0 0.1 0.0 0.0 0.0
Employee stock purchase plan 1.5 0.0 1.5 0.0 0.0 0.0
Cash dividend declared - common shares (18.2) 0.0 0.0 0.0 (18.2) 0.0
Ending Balance at Dec. 31, 2014 1,646.7 34.3 836.3 (301.4) 969.4 108.1
Net income 163.2 0.0 0.0 0.0 163.2 0.0
Other comprehensive income, net of tax (96.6) 0.0 0.0 0.0 0.0 (96.6)
Repurchase of common shares (1,098,732, 1,048,144, and 575,115 at a weighted average price of $41.04, $48.48, and $51.58 for 2013, 2014, and 2015 respectively) (29.7) 0.0 0.0 (29.7) 0.0 0.0
Activity under stock incentive plans 9.2 0.3 8.9 0.0 0.0 0.0
Retirement of common shares (tax payments on equity compensation) (4.1) (0.1) (4.0) 0.0 0.0 0.0
Deferred tax - share-based payments 0.6 0.0 0.6 0.0 0.0 0.0
Employee stock purchase plan 1.5 0.0 1.5 0.0 0.0 0.0
10% stock dividend 0.0 2.6 121.6 0.0 (124.2) 0.0
Cash dividend declared - common shares (22.7) 0.0 0.0 0.0 (22.7) 0.0
Ending Balance at Dec. 31, 2015 $ 1,668.1 $ 37.1 $ 964.9 $ (331.1) $ 985.7 $ 11.5
v3.3.1.900
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Statement Of Stockholders Equity [Abstract]      
Common shares repurchased 575,155 1,048,144 1,098,732
Repurchase of common shares, weighted average price $ 51,580 $ 48,480 $ 41,040
Stock dividend declared 10.00%   10.00%
Cash dividend declared - common shares, per share $ 0.80 $ 0.63 $ 0.54
v3.3.1.900
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Cash flows from operating activities:      
Net income $ 163.2 $ 183.2 $ 143.2
Adjustments to reconcile net income to net cash provided (used) by operating activities:      
Amortization and depreciation 38.7 37.2 39.6
Share-based payments expense 29.1 19.6 23.3
Excess tax (benefit) expense from share-based payment arrangements (0.6) (0.1) (0.2)
Deferred income tax provision, net 8.3 27.6 3.8
Net realized investment and other gains (27.1) (94.0) (71.3)
Loss on disposals of fixed assets, net 0.2 0.0 0.2
Impairment of intangible assets 0.0 3.4 0.0
Change in:      
Accrued investment income 0.5 3.4 5.3
Receivables (182.6) 256.7 86.7
Deferred acquisition costs (8.5) (7.3) (14.1)
Ceded unearned premiums (45.9) (12.4) (4.0)
Reserves for losses and loss adjustment expenses 94.3 (182.0) (8.9)
Unearned premiums 76.5 39.1 51.4
Ceded reinsurance payable and funds held 157.2 (163.9) (246.4)
Income taxes 3.3 (19.7) 17.0
Accrued underwriting expenses (24.6) 11.7 (4.0)
Other, net 0.6 28.0 (21.8)
Cash provided (used) by operating activities 282.6 130.5 (0.2)
Cash flows from investing activities:      
Sales of fixed maturity investments 787.5 1,104.9 1,795.4
Maturities and mandatory calls of fixed maturity investments 843.9 323.0 281.8
Sales of equity securities 122.0 123.9 163.4
Sales of other investments 58.4 33.2 7.5
Purchases of fixed maturity investments (1,842.8) (1,531.5) (1,822.9)
Purchases of equity securities (114.1) (55.8) (80.0)
Purchases of other investments (77.2) (149.5) (72.9)
Change in foreign regulatory deposits and voluntary pools 3.5 21.2 (7.7)
Change in short-term investments 46.1 75.3 (145.3)
Settlements of foreign currency exchange forward contracts (10.1) (1.1) (3.9)
Purchases of fixed assets (18.9) (39.0) (26.1)
Other, net 8.1 (25.9) 31.5
Cash (used) provided by investing activities (193.6) (121.3) 120.8
Cash flows from financing activities:      
Payment on note payable 0.0 (0.1) 0.0
Redemption of trust preferred securities, net 0.0 (18.0) 0.0
Activity under stock incentive plans 1.8 4.6 2.6
Repurchase of Company's common shares (29.7) (50.8) (46.5)
Excess tax expense from share-based payment arrangements 0.6 0.1 0.2
Payment of cash dividends to common shareholders (22.7) (18.2) (15.8)
Cash used by financing activities (50.0) (82.4) (59.5)
Effect of exchange rate changes on cash 1.7 (3.2) 0.5
Change in cash 40.7 (76.4) 61.6
Cash, beginning of year 81.0 157.4 95.8
Cash, end of year $ 121.7 $ 81.0 $ 157.4
v3.3.1.900
Business and Significant Accounting Policies
 12 Months Ended
Dec. 31, 2015
Accounting Policies [Abstract]  
Business and Significant Accounting Policies

1.

Business and Significant Accounting Policies

Business

Argo Group International Holdings, Ltd. (“Argo Group,” “we” or the “Company”) is an international underwriter of specialty insurance and reinsurance products in the property and casualty market. Argo Group US, Inc. (“Argo Group US”) is a subsidiary of Argo Financial Holding (Ireland), Ltd. (“Argo Ireland”). Argo Underwriting Agency Limited (“Syndicate 1200”) is a subsidiary of Argo International Holdings, Ltd. Argo Re, Ltd. (“Argo Re”), a Bermuda based company, is the parent of both Argo Ireland and Argo International Holdings, Ltd. Argo Re is directly owned by Argo Group.

We conduct our ongoing business through four segments.

Excess and Surplus Lines products are underwritten by Colony Insurance Company (“Colony”) under two operating platforms: Colony Specialty and Argo Pro.

Commercial Specialty consists of the following operations: Argo Insurance, Rockwood Casualty Insurance Company (“Rockwood”), Argo Surety, Trident Insurance Services, Alteris and ARIS Title Insurance Corporation (“ARIS”).

International Specialty products are provided by our Bermuda operations, which include Argo Re and Argo Insurance – Casualty and Professional Lines and Argo Seguros Brasil S.A. based in Brazil.

Syndicate 1200 products are underwritten by Argo Underwriting Agency Limited based in London, on behalf of one underwriting syndicate under the Lloyd’s of London (“Lloyd’s”) global franchise.

Our Run-off Lines segment includes liabilities associated with other liability policies that were issued in the 1960s, 1970s and into the 1980s, as well as the former risk management business and other business no longer underwritten.

Basis of Presentation and Use of Estimates

The consolidated financial statements of Argo Group and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The major estimates reflected in our consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses; reinsurance recoverables, including the reinsurance recoverables allowance for doubtful accounts; estimates of written and earned premiums; reinsurance premium receivable; fair value of investments and assessment of potential impairment; valuation of goodwill and intangibles and our deferred tax asset valuation allowance. Actual results could differ from those estimates.

Specifically, estimates for reserves for losses and loss adjustment expenses are based upon past claim experience modified for current trends as well as prevailing economic, legal and social conditions. Although management believes that amounts included in the accompanying consolidated financial statements are reasonable, such estimates may be more or less than the amounts ultimately paid when the claims are settled. The estimates are continually reviewed and any changes are reflected in current operating results. Further, the nature of loss exposures involves significant variability due to the nature of the long-tailed payments on certain claims. As such, losses and loss adjustment expenses could vary significantly from the recorded amounts.

The consolidated financial statements include the accounts and operations of Argo Group and its subsidiaries. All material intercompany accounts and transactions have been eliminated. Certain amounts in prior years’ financial statements have been reclassified to conform to the current presentation. Amounts related to trade capital providers, who are third-party capital participants that provide underwriting capital to the Syndicate 1200 segment, are included in the balance sheet. Trade capital providers participate on a quota share basis, assuming 100% of their contractual participation in the underwriting syndicate results and with such results settled on a year of account basis.

In 2009, the Financial Accounting Standards Board (“FASB”) issued revised accounting standards regarding consolidation of variable interest entities. We reevaluated our investment in our twelve statutory trusts (collectively, the “Trusts”) and two charitable foundations (collectively, the “Foundations”). We determined that the Trusts and Foundations continue to be variable interest entities due to the fact that the Trusts and Foundations do not have sufficient equity to finance their activities without additional subordinate financial support from other parties. We do not have any power to direct the activities that impact the Trusts or Foundations’ economic performance. We are not entitled to receive a majority of the residual returns of the Trusts and U.S. charitable foundations. Additionally, we are not responsible for absorbing the majority of the expected losses of the Trusts or U.S. charitable foundations; therefore, we are not the primary beneficiary and, accordingly, the Trusts and U.S. charitable foundations are not included in our consolidated financial statements. The expenses and donations of the charitable foundations in Bermuda are paid by Argo Group and have been included in the consolidated results.

We have used a series of special purpose reinsurance companies to provide reinsurance coverage through a series of transactions, including insurance linked securities.  Under the provisions of Accounting Standards Codification (“ASC”) Topic 810-10, “Consolidation,” these reinsurance companies are variable interest entities.  However, we do not have a variable interest in these entities, and therefore are not required to consolidate them in our consolidated financial statements.

Stock Dividends

On May 7, 2013, our Board of Directors declared a 10% stock dividend, payable on June 17, 2013, to shareholders of record at the close of business on June 3, 2013. As a result of the stock dividend, 2,447,839 additional shares were issued. Cash was paid in lieu of fractional shares of our common shares. All references to share and per share amounts in this document and related disclosures have been adjusted to reflect the stock dividend for all periods presented.

On February 17, 2015, our Board of Directors declared a 10% stock dividend, payable on March 16, 2015, to shareholders of record at the close of business on March 2, 2015. As a result of the stock dividend, 2,554,506 additional shares were issued. Cash was paid in lieu of fractional shares of our common shares. All references to share and per share amounts in this document and related disclosures have been adjusted to reflect the stock dividend for all periods presented

Cash

Cash consists of cash deposited in banks, generally in concentration and operating accounts. Interest-bearing cash accounts are classified as short-term investments.

Investments

Investments in fixed maturities at December 31, 2015 and 2014 include bonds and structured securities. Equity securities include common stocks, preferred stocks and mutual funds. Other investments consist of foreign regulatory deposits, hedge funds, private equity funds, private equity direct investments, voluntary pools and foreign exchange currency forward contracts. Short-term investments consist of money market funds, certificates of deposit, bonds, sovereign debt and interest-bearing cash accounts. Investments maturing in less than one year are classified as short-term investments in our consolidated financial statements.

The amortized cost of fixed maturity securities is adjusted for amortization of premiums and accretion of discounts. This amortization or accretion is included in “Net investment income” in our Consolidated Statements of Income.

For the structured securities portion of the fixed maturity securities portfolio, we recognize income using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. Premium or discount on high investment grade securities (rated AA or higher) is amortized into income using the retrospective method. Premium or discount on lower grade securities (rated less than AA) is amortized into income using the prospective method.

Our investments in fixed maturities and equity securities with readily determinable fair value are considered available-for-sale and are carried at fair value. Changes in the fair value of investments classified as available-for-sale are not recognized to income during the period, but rather are recognized as a separate component of shareholders’ equity until realized. Fair value of these investments is estimated using prices obtained from third-party pricing services, where available. For securities where we were unable to obtain fair values from a pricing service or broker, fair values were estimated using information obtained from investment advisors. We performed several processes to ascertain the reasonableness of these investment values by i) obtaining and reviewing internal control reports for our service providers that obtain fair values from third-party pricing services, ii) discussing with our investment managers their process for reviewing and validating pricing obtained from outside services and obtaining values for all securities from our investment managers and iii) comparing the security pricing received from the investment managers with the prices used in the consolidated financial statements and obtaining additional information for variances that exceeded a certain threshold. As of December 31, 2015, investments we hold for which we did not receive a fair value from a pricing service or broker accounted for less than 1% of our investment portfolio. The actual value at which these securities could actually be sold or settled with a willing buyer or seller may differ from our estimated fair values depending on a number of factors including, but not limited to, current and future economic conditions, quantity sold or settled, presence of an active market and availability of a willing buyer or seller. The cost of securities sold is based on the specific identification method.

Changes in the value of other investments consisting of hedge funds, private equity funds, private equity direct investments and voluntary pools are principally recognized to income during the period using the equity method of accounting. Our foreign regulatory deposits are assets held in trust in jurisdictions where there is a legal and regulatory requirement to maintain funds locally in order to protect policyholders. Lloyd’s is the appointed investment manager for the funds. The underlying assets are invested in government securities, agency securities and corporate bonds whose values are obtained from Lloyd’s. Foreign currency future contracts held by us are valued by our counterparties using market driven foreign currency exchange rates.

We regularly evaluate our investments for other-than-temporary impairment. For fixed maturity securities, the evaluation for a credit loss is generally based on the present value of expected cash flows of the security as compared to the amortized book value. For structured securities, frequency and severity of loss inputs are used in projecting future cash flows of the securities. Loss frequency is measured as the credit default rate, which includes such factors as loan-to-value ratios and credit scores of borrowers. Loss severity includes such factors as trends in real estate values and proceeds at foreclosure. We also recognize other-than-temporary losses on our fixed maturity securities that we intend to sell.

All investment balances include amounts relating to trade capital providers. The results of operations and other comprehensive income exclude amounts relating to trade capital providers. Trade capital providers’ participation in the syndicate results are included in reinsurance recoverable for ceded losses and reinsurance payable for ceded premiums.

Receivables

Premiums receivable, representing amounts due from insureds, are presented net of an allowance for doubtful accounts. The allowances for doubtful accounts were $3.5 million and $5.2 million at December 31, 2015 and 2014, respectively. Premiums receivable include amounts relating to the trade capital providers’ quota share.

Reinsurance recoverables represent amounts of paid losses and loss adjustment expenses, case reserves and incurred but not reported (“IBNR”) amounts ceded to reinsurers under reinsurance treaties. Reinsurance recoverables also reflect amounts that are due from trade capital providers. Reinsurance recoverables are presented in our Consolidated Balance Sheets net of an allowance for doubtful accounts of $3.2 million and $3.4 million at December 31, 2015 and 2014, respectively (see Note 3, “Reinsurance” for related disclosures).

An estimate of amounts that are likely to be charged off is established as an allowance for doubtful accounts as of the balance sheet date. Our estimate includes specific insured and reinsurance balances that are considered probable to be charged off after all collection efforts have ceased and in accordance with historical write-off trends based on aging categories. Premiums receivable and reinsurance recoverables on paid losses written off, net of recoveries against the allowance for doubtful accounts or directly to the income statement are as follows:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Premiums receivable

 

$

1.0

 

 

$

1.1

 

 

$

0.2

 

Reinsurance recoverables

 

 

0.2

 

 

 

0.5

 

 

 

—

 

Net written off (recovered)

 

$

1.2

 

 

$

1.6

 

 

$

0.2

 

 

Recoveries occur when subsequent collection or litigation results in the receipt of amounts previously written off. Amounts recovered are applied against the bad debt expense account.

Earned Premiums

Premium revenue is recognized ratably over the policy period. Premiums that have yet to be earned are reported as “Unearned premiums” in our Consolidated Balance Sheets.

Unearned premium balances include cessions to reinsurers including trade capital providers, while the earned premium recognized in our Consolidated Statements of Income excludes amounts relating to trade capital providers. The trade capital providers’ quota share amount is included in “Ceded reinsurance payable, net”.

Assumed reinstatement premiums that reinstate coverage are written and earned at the time the associated loss event occurs. The original premium is earned over the remaining exposure period of the contract. Reinstatement premiums are estimated based upon contract terms for reported losses and estimated for incurred but not reported losses.

Retrospectively Rated Policies

We have written a number of workers compensation, property and other liability policies that are retrospectively rated. Under this type of policy, the policyholder or coverholder may be entitled, subsequent to coverage expiration, to a refund or may owe additional premiums based on the amount of losses incurred under the policy. The retrospective premium adjustments on certain policies are limited to a minimum or maximum premium adjustment, which is calculated as a percentage of the standard amount of premium charged during the life of the policy. Accrued retrospectively rated premiums have been determined based on estimated ultimate loss experience of the individual policyholder accounts. The estimated liability for return of premiums under retrospectively rated policies is included in “Unearned premiums” in our Consolidated Balance Sheets and was $6.5 million and $5.8 million at December 31, 2015 and 2014, respectively.  The estimated amount included in premiums receivables for additional premiums due under retrospectively rated policies was $0.1 million at December 31, 2015. No amount was included in premiums receivables for additional premium due under retrospectively rate policies at December 31, 2014.

Deferred Acquisition Costs

Policy acquisition costs, which include commissions, premium taxes, fees and certain other costs of underwriting policies, are deferred, when such policies are profitable, and amortized over the same period in which the related premiums are earned. To qualify for capitalization, the policy acquisition cost must be directly related to the successful acquisition of an insurance contract. Anticipated investment income is considered in determining whether the deferred acquisition costs are recoverable and whether a premium deficiency exists. We continually review the methods of making such estimates and establishing the deferred costs with any adjustments made in the accounting period in which the adjustment arose.

The 2015 and 2014 net amortization of policy acquisition costs will not equal the change in our Consolidated Balance Sheets as the trade capital providers’ share is not reflected in our Consolidated Statements of Income and differences arise from foreign currency exchange rates applied to deferred acquisition costs which are treated as a nonmonetary asset.

Reserves for Losses and Loss Adjustment Expenses

Liabilities for unpaid losses and loss adjustment expenses include the accumulation of individual case estimates for claims reported as well as estimates of IBNR claims and estimates of claim settlement expenses. Reinsurance recoverables on unpaid claims and claim expenses represent estimates of the portion of such liabilities that will be recoverable from reinsurers. Amounts recoverable from reinsurers are recognized as assets at the same time and in a manner consistent with the unpaid claims liabilities associated with the reinsurance policy.

Reinsurance

In the normal course of business, our insurance and reinsurance subsidiaries reinsure various risks above certain retention levels with other insurance enterprises. Reinsurance recoverables include claims we paid and estimates of unpaid losses and loss adjustment expenses that are subject to reimbursement under reinsurance and retrocessional contracts. The method for determining reinsurance recoverables for unpaid losses and loss adjustment expenses involves reviewing actuarial estimates of gross unpaid losses and loss adjustment expenses to determine our ability to cede unpaid losses and loss adjustment expenses under our existing reinsurance contracts. This method is continually reviewed and updated and any resulting adjustments are reflected in earnings in the period identified. Reinsurance premiums, commissions and expense reimbursements are accounted for on a basis consistent with those used in accounting for the original policies issued and the term of the reinsurance contracts. Amounts recoverable from reinsurers for losses and loss adjustment expenses for which our insurance and reinsurance subsidiaries have not been relieved of their legal obligations to the policyholder are reported as assets.

Goodwill and Intangible Assets

Goodwill and intangible assets are allocated to the segment in which the results of operations for the acquired company are reported (see Note 18, “Segment Information” for further discussion). Intangible assets with a finite life are amortized over the estimated useful life of the asset. Goodwill and intangible assets with an indefinite useful life are not amortized. Goodwill and intangible assets are tested for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. For goodwill, we may perform a qualitative test to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment test. Based on prior goodwill impairment testing, we determined the performance of the quantitative impairment test was required for 2015. The first step of the quantitative test is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill (“Step 1”). If the fair value of a reporting unit exceeds its carrying value amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step is not necessary. However, if the carrying amount of the reporting unit exceeds its fair value, the second step (“Step 2”) is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. Step 2 compares the implied fair value of goodwill with the carrying amount of goodwill. If the implied value of goodwill is less than the carrying amount of goodwill, it is written down to its fair value with a corresponding expense reflected in the Consolidated Statements of Income. The implied goodwill is calculated based on a hypothetical purchase price allocation, similar to the requirements in the accounting guidance for business combinations, whereby the implied fair value of the reporting unit is allocated to the fair value of the assets and liabilities of the reporting unit.

We perform our goodwill impairment test on the first day of the fourth quarter of each year, or October 1 of each year. In performing Step 1 of the impairment test, we estimated the fair value of reporting units using an average of three valuation methods: a comparable company analysis, a precedent transaction analysis and a discounted cash flow analysis. All three methods require management to make various judgments and assumptions. The discounted cash flow analysis included projections of earned premiums, loss ratios, expense growth and discount rates for each reporting unit. Assumptions about such future cash flows are based on our budgets, business plans, economic projections, anticipated future cash flows and market data. Finally, the comparable company analysis and precedent transaction analysis required judgment in selecting comparable companies and comparable transactions for use in the calculations. In all instances, future changes in these judgments and assumptions could cause impairment of goodwill.

For the years ended December 31, 2015, 2014 and 2013, all of our reporting units passed Step 1 of the goodwill impairment analysis as the fair value of each reporting unit were in excess of their carrying values.  Therefore, Step 2 of the goodwill impairment analysis was not required. Any future decline in the fair value of these reporting units could result in the carrying value of the reporting unit being in excess of fair value, triggering Step 2 of the impairment testing model, which could result in an impairment of goodwill.

For the year ended December 31, 2014, we determined as a result of the slower than anticipated development of revenues for our art title insurance company, the likelihood of near term recovery of the intangible assets, including goodwill, was not probable. Therefore, we wrote-off $1.6 million of goodwill and $1.8 million of indefinite lived intangible assets related to this operating unit.

As noted above, we have elected to make the first day of the fourth quarter the annual impairment assessment date for goodwill and indefinite-lived intangible assets. An impairment analysis subsequent to this date has not been performed as management believes that no additional indicators of impairment have arisen, such as significant additional pricing competition, unexpected significant declines in operating results, divestiture of a significant component of the business or a significant decline in our market capitalization.

The following table presents our intangible assets and accumulated amortization at December 31:

 

 

 

December 31, 2015

 

 

December 31, 2014

 

(in millions)

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

Lloyd's capacity

 

$

60.5

 

 

n/a

 

 

$

60.5

 

 

n/a

 

Distribution network

 

 

45.5

 

 

 

33.2

 

 

 

44.8

 

 

 

27.9

 

Additional Lloyd's capacity

 

 

4.8

 

 

 

4.6

 

 

 

4.8

 

 

 

3.9

 

Other

 

 

1.6

 

 

 

1.3

 

 

 

1.5

 

 

 

1.2

 

 

 

$

112.4

 

 

$

39.1

 

 

$

111.6

 

 

$

33.0

 

 

The weighted average useful life by category at December 31, 2015 was 9.3 years for the distribution network, 5.0 years for the additional Lloyd’s capacity and 9.1 years for other. The weighted average useful life for all categories was 8.9 years at December 31, 2015.

During the twelve months ended December 31, 2015, 2014 and 2013, amortization expense was $7.5 million, $5.6 million and $6.1 million, respectively, and is included in “Underwriting, acquisition and insurance expenses” in our Consolidated Statements of Income.

The estimated amortization expense for the years ended December 31, 2016, 2017, 2018, 2019 and 2020 is $5.6 million, $4.8 million, $2.2 million, $0.4 million and $0.0 million, respectively.

Property and Equipment

Property and equipment used in operations, including certain costs incurred to develop or obtain computer software for internal use, are capitalized and carried at cost less accumulated depreciation and are reported in “Other assets” in our Consolidated Balance Sheets. Depreciation is calculated using a straight-line method over the estimated useful lives of the assets, generally three to thirty nine years. The accumulated depreciation for property and equipment was $85.1 million and $78.2 million at December 31, 2015 and 2014, respectively. The net book value of our property and equipment at December 31, 2015 and 2014 was $133.1 million and $96.4 million, respectively. The depreciation expense at December 31, 2015, 2014 and 2013 was $17.5 million, $15.1 million and $15.5 million, respectively.

Derivative Instruments

We enter into short-term, currency spot and forward contracts to mitigate foreign exchange rate exposure in our non-U.S. Dollar denominated fixed maturity investments. The forward contracts used are typically less than sixty days and are renewed as long as the non-U.S. Dollar denominated fixed maturity investments are held in our portfolio. Forward contracts are designated as hedges for accounting purposes. We also enter into foreign currency exchange forward contracts to manage currency exposure on losses related to global catastrophe events. These foreign currency forward contracts are carried at fair value in our Consolidated Balance Sheets in “Other investments.” The realized and unrealized gains and losses are included in “Net realized investment and other gains” in our Consolidated Statements of Income.

Through our subsidiary Argo Re, in December 2011, we entered into a reinsurance contract with a special purpose reinsurance company that provided us with protection against certain severe catastrophe events and the occurrence of multiple significant catastrophe events during the same year. The special purpose reinsurance company provided the reinsurance through a catastrophe bond transaction that was supported by a collateralized facility. The reinsurance contract was deemed to be a derivative. We recorded the contract at fair value, with any changes in the value reflected in “Other reinsurance-related expenses” in our Consolidated Statements of Income. See Note 4, “Derivative Instruments” for related disclosures.

Share-Based Payments

Compensation expense for share-based payments is recognized based on the measurement-date fair value for awards that will settle in shares. Awards that are expected to be settled in cash are accounted for as liability awards, resulting in the fair value of the award being measured at each reporting date until the award is exercised, forfeited or expires unexercised. Compensation expense for awards that are settled in equity are recognized on a straight line pro rata basis over the vesting period. Compensation expense for awards that are settled in cash are recognized on the accelerated recognition method over the award’s vesting period. See Note 12, “Share-based Compensation” for related disclosures.

Foreign Currency Exchange Gain (Loss)

The U.S. Dollar is the functional currency of all but two of our foreign operations. Monetary assets and liabilities in foreign operations that are denominated in foreign currencies are revalued at the exchange rates in effect at the balance sheet date. The resulting gains and losses from changes in the foreign exchange rates are reflected in net income. Revenues and expenses denominated in foreign currencies are translated at the prevailing exchange rate during the period with the resulting foreign exchange gains and losses included in net income for the period. In the case of our foreign currency denominated available-for-sale investments, the change in exchange rates between the local currency and our functional currency at each balance sheet date represents an unrealized appreciation or depreciation in value of these securities and is included as a component of accumulated other comprehensive gain.

Translation gains and losses related to our operations in Brazil and Malta are recorded as a component of shareholders’ equity in our Consolidated Balance Sheets. At December 31, 2015 and 2014, the foreign currency translation adjustments were a loss of $21.6 million and $15.6 million, respectively.

Income Taxes

Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in net income in the period in which the change is enacted.

We recognize potential accrued interest and penalties within our global operations in “Interest expense” and “Underwriting, acquisition and insurance expenses,” respectively, in our Consolidated Statements of Income.

Supplemental Cash Flow Information

Income taxes paid. We paid income taxes of $10.9 million, $23.7 million and $14.2 million in 2015, 2014 and 2013, respectively.

Income taxes recovered. We recovered income taxes of $11.7 million and $0.1 million in 2015 and 2014, respectively. We did not recover any income taxes in 2013.

Interest paid as follows:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Senior unsecured fixed rate notes

 

$

9.3

 

 

$

9.3

 

 

$

9.3

 

Junior subordinated debentures

 

 

7.0

 

 

 

7.6

 

 

 

7.9

 

Other indebtedness

 

 

2.4

 

 

 

2.8

 

 

 

2.6

 

Total interest paid

 

$

18.7

 

 

$

19.7

 

 

$

19.8

 

 

Non-cash operating activities transactions. Our Consolidated Statements of Cash Flows contains a reconciliation of net income to “Net cash (used) provided by operating activities,” which includes, among other things, certain adjustments for non-cash items. For the year ended December 31, 2014, the adjustment for “Net realized and other gains” includes a $43.3 million non-cash item related to the pre-tax realized gain recognized on the sale of a real estate holding, as the proceeds from this sale were held in escrow and recorded as a receivable within “Other assets” in our Consolidated Balance Sheet at December 31, 2014.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (Topic 606). The ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The ASU provides a five-step analysis of transactions to determine when and how revenue is recognized and requires additional disclosures sufficient to describe the nature, amount, timing and uncertainty of revenue and cash flows for these transactions. The original effective date of this ASU was deferred by one year by the FASB’s August 2015 issuance of ASU 2015-14, “Deferral of the Effective Date” (Topic 606), with the new effective date being for annual reporting periods beginning after December 15, 2017, with early adoption permitted as early as annual reporting periods beginning after December 15, 2016. We will adopt this ASU on January 1, 2018. Companies may use either a “full retrospective” adoption, meaning the update is applied to all periods presented, or a “modified retrospective” adoption, meaning the update is applied only to the most current period presented in the financial statements. While insurance contracts are excluded from this ASU, fee income related to our brokerage operations and management of the third-party capital for our underwriting Syndicate at Lloyd’s will be subject to this updated guidance. We continue to evaluate what impact this ASU will have on our financial results and disclosures and which adoption method to apply, but do not anticipate such impact being material based on the limited revenue streams subject to the ASU.

In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis" (Topic 810). ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether entities should be consolidated if they are deemed variable interest entities. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. We have adopted this standard as of the effective date, and the adoption did not impact our financial statements.

In May 2015, the FASB issued ASU 2015-09, “Disclosures about Short-Duration Contracts” (Topic 944). ASU 2015-09 focuses on the requirement of additional disclosures for unpaid claim liabilities and claim adjustment expenses for short-duration insurance contracts (i.e., coverage provided for a fixed period of short duration, typically a year or less).  The standard will require tables showing incurred and paid claims development information by accident year for the number of years claims typically remain outstanding, but not more than 10 years, including a reconciliation of this information to the statement of financial position. This ASU is effective for annual periods beginning after December 15, 2015 and interim periods within annual periods after December 15, 2016. We are currently in the process of evaluating the impact of the adoption of ASU 2015-09 on our financial disclosures.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (Subtopic 825-10). The ASU will require equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income. This ASU will also require us to assess the realizability of any deferred tax assets (“DTAs”) related to an available-for-sale debt security in combination with our other DTAs. The ASU will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently in the process of evaluating the impact of the adoption of ASU 2016-01 on our financial results and disclosures.

 

 
v3.3.1.900
Investments
 12 Months Ended
Dec. 31, 2015
Investments Debt And Equity Securities [Abstract]  
Investments

2.

Investments

Composition of Invested Assets

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investments as of December 31 were as follows:

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments

 

$

207.9

 

 

$

0.7

 

 

$

0.7

 

 

$

207.9

 

Non-U.S. Governments

 

 

92.9

 

 

 

—

 

 

 

1.2

 

 

 

91.7

 

Obligations of states and political subdivisions

 

 

467.6

 

 

 

20.7

 

 

 

0.3

 

 

 

488.0

 

Credit-Financial

 

 

533.3

 

 

 

6.1

 

 

 

3.5

 

 

 

535.9

 

Credit-Industrial

 

 

524.2

 

 

 

5.4

 

 

 

11.7

 

 

 

517.9

 

Credit-Utility

 

 

168.7

 

 

 

0.9

 

 

 

13.4

 

 

 

156.2

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency (1)

 

 

126.5

 

 

 

5.0

 

 

 

0.5

 

 

 

131.0

 

CMO/MBS-non agency

 

 

11.0

 

 

 

0.6

 

 

 

0.1

 

 

 

11.5

 

CMBS (2)

 

 

182.2

 

 

 

0.5

 

 

 

1.5

 

 

 

181.2

 

ABS (3)

 

 

111.4

 

 

 

0.2

 

 

 

0.7

 

 

 

110.9

 

CLO (4)

 

 

137.1

 

 

 

0.2

 

 

 

1.7

 

 

 

135.6

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

170.0

 

 

 

0.8

 

 

 

19.6

 

 

 

151.2

 

Credit

 

 

129.1

 

 

 

1.2

 

 

 

20.2

 

 

 

110.1

 

ABS/CMBS

 

 

24.1

 

 

 

0.1

 

 

 

2.3

 

 

 

21.9

 

CLO

 

 

85.0

 

 

 

0.7

 

 

 

9.4

 

 

 

76.3

 

Total fixed maturities

 

 

2,971.0

 

 

 

43.1

 

 

 

86.8

 

 

 

2,927.3

 

Equity securities

 

 

349.7

 

 

 

131.5

 

 

 

17.3

 

 

 

463.9

 

Other investments

 

 

499.6

 

 

 

15.0

 

 

 

0.9

 

 

 

513.7

 

Short-term investments

 

 

211.2

 

 

 

—

 

 

 

0.4

 

 

 

210.8

 

Total investments

 

$

4,031.5

 

 

$

189.6

 

 

$

105.4

 

 

$

4,115.7

 

 

(1) 

Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”).

(2) 

Commercial mortgage-backed securities (“CMBS”).

(3) 

Asset-backed securities (“ABS”).

(4)

Collateralized loan obligations (“CLO”)

 

December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments

 

$

184.0

 

 

$

1.3

 

 

$

0.3

 

 

$

185.0

 

Non-U.S. Governments

 

 

79.9

 

 

 

0.6

 

 

 

0.6

 

 

 

79.9

 

Obligations of states and political subdivisions

 

 

468.1

 

 

 

22.9

 

 

 

0.3

 

 

 

490.7

 

Credit-Financial

 

 

508.1

 

 

 

12.3

 

 

 

2.3

 

 

 

518.1

 

Credit-Industrial

 

 

493.7

 

 

 

9.4

 

 

 

3.5

 

 

 

499.6

 

Credit-Utility

 

 

142.7

 

 

 

3.2

 

 

 

3.9

 

 

 

142.0

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency (1)

 

 

168.0

 

 

 

8.0

 

 

 

0.7

 

 

 

175.3

 

CMO/MBS-non agency

 

 

13.2

 

 

 

0.8

 

 

 

—

 

 

 

14.0

 

CMBS (2)

 

 

178.6

 

 

 

1.6

 

 

 

0.2

 

 

 

180.0

 

ABS (3)

 

 

142.7

 

 

 

0.4

 

 

 

0.5

 

 

 

142.6

 

CLO (4)

 

 

78.7

 

 

 

0.2

 

 

 

0.5

 

 

 

78.4

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

148.4

 

 

 

1.2

 

 

 

9.4

 

 

 

140.2

 

Credit

 

 

136.7

 

 

 

1.8

 

 

 

12.5

 

 

 

126.0

 

ABS/CMBS

 

 

29.5

 

 

 

0.2

 

 

 

2.5

 

 

 

27.2

 

CLO

 

 

44.9

 

 

 

0.7

 

 

 

3.9

 

 

 

41.7

 

Total fixed maturities

 

 

2,817.2

 

 

 

64.6

 

 

 

41.1

 

 

 

2,840.7

 

Equity securities

 

 

324.8

 

 

 

184.1

 

 

 

5.1

 

 

 

503.8

 

Other investments

 

 

488.9

 

 

 

7.5

 

 

 

1.3

 

 

 

495.1

 

Short-term investments

 

 

258.3

 

 

 

—

 

 

 

—

 

 

 

258.3

 

Total investments

 

$

3,889.2

 

 

$

256.2

 

 

$

47.5

 

 

$

4,097.9

 

 

(1) 

Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”).

(2) 

Commercial mortgage-backed securities (“CMBS”).

(3) 

Asset-backed securities (“ABS”).

(4)

Collateralized loan obligations (“CLO”)

 

Included in “Total investments” in our Consolidated Balance Sheets at December 31, 2015 and 2014 is $95.3 million and $75.2 million, respectively, of assets managed on behalf of the trade capital providers, who are third-party participants that provide underwriting capital to our Syndicate 1200 segment.

Contractual Maturity

The amortized cost and fair values of fixed maturity investments as of December 31, 2015, by contractual maturity, were as follows:

 

(in millions)

 

Amortized

Cost

 

 

Fair

Value

 

Due in one year or less

 

$

239.5

 

 

$

226.5

 

Due after one year through five years

 

 

1,394.6

 

 

 

1,373.5

 

Due after five years through ten years

 

 

481.2

 

 

 

475.7

 

Thereafter

 

 

178.4

 

 

 

183.2

 

Structured securities

 

 

677.3

 

 

 

668.4

 

Total

 

$

2,971.0

 

 

$

2,927.3

 

 

The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations.

Other Invested Assets

 

Details regarding the carrying value, redemption characteristics and unfunded investment commitments of the other invested assets portfolio as of December 31, 2015 and 2014 were as follows:

 

December 31, 2015

 

 

 

 

 

 

 

 

(in millions)

 

Carrying

Value

 

 

Unfunded

Commitments

 

Investment Type

 

 

 

 

 

 

 

 

Hedge funds

 

$

146.9

 

 

$

—

 

Private equity

 

 

144.1

 

 

 

90.2

 

Long only funds

 

 

200.0

 

 

 

—

 

Other investments

 

 

22.7

 

 

 

—

 

Total other invested assets

 

$

513.7

 

 

$

90.2

 

 

 December 31, 2014

 

 

 

 

 

 

 

 

(in millions)

 

Carrying

Value

 

 

Unfunded

Commitments

 

Investment Type

 

 

 

 

 

 

 

 

Hedge funds

 

$

153.2

 

 

$

—

 

Private equity

 

 

123.6

 

 

 

72.9

 

Long only funds

 

 

200.7

 

 

 

—

 

Other investments

 

 

17.6

 

 

 

—

 

Total other invested assets

 

$

495.1

 

 

$

72.9

 

      

The following describes each investment type:

 

 

·

Hedge funds: Hedge funds include funds that primarily buy and sell stocks including short sales, multi-strategy credit, relative value credit and distressed credit.

 

·

Private equity:  Private equity includes buyout funds, real asset/infrastructure funds, credit special situations funds, mezzanine lending funds and direct investments and strategic non-controlling minority investments in private companies that are principally accounted for using the equity method of accounting.

 

·

Long only funds: These funds include a fund that primarily owns international stocks, a fund that owns high yield fixed income securities and a fund that primarily owns investment-grade corporate and sovereign fixed income securities.

 

·

Other investments: Other investments include participation in investment pools, foreign exchange currency forward contracts to manage our foreign currency exposure and a portfolio of foreign exchange currency forward contracts that are actively traded by an external currency manager for a total return strategy.

Unrealized Losses and Other-than-temporary Impairments

An aging of unrealized losses on our investments in fixed maturities, equity securities, other investments and short-term investments is presented below:

 

December 31, 2015

 

Less Than One Year

 

 

One Year or Greater

 

 

Total

 

(in millions)

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments (2)

 

$

138.3

 

 

$

0.7

 

 

$

0.4

 

 

$

—

 

 

$

138.7

 

 

$

0.7

 

Non-U.S. Governments (2)

 

 

80.2

 

 

 

1.2

 

 

 

2.2

 

 

 

—

 

 

 

82.4

 

 

 

1.2

 

Obligations of states and political

   subdivisions (1)

 

 

9.3

 

 

 

—

 

 

 

8.8

 

 

 

0.3

 

 

 

18.1

 

 

 

0.3

 

Credit-Financial

 

 

308.7

 

 

 

3.0

 

 

 

32.2

 

 

 

0.5

 

 

 

340.9

 

 

 

3.5

 

Credit-Industrial

 

 

320.4

 

 

 

9.6

 

 

 

28.7

 

 

 

2.1

 

 

 

349.1

 

 

 

11.7

 

Credit-Utility

 

 

111.6

 

 

 

8.5

 

 

 

16.4

 

 

 

4.9

 

 

 

128.0

 

 

 

13.4

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency

 

 

26.9

 

 

 

0.2

 

 

 

8.4

 

 

 

0.3

 

 

 

35.3

 

 

 

0.5

 

CMO/MBS-non agency

 

 

7.0

 

 

 

0.1

 

 

 

—

 

 

 

—

 

 

 

7.0

 

 

 

0.1

 

CMBS (2)

 

 

126.3

 

 

 

1.5

 

 

 

3.0

 

 

 

—

 

 

 

129.3

 

 

 

1.5

 

ABS

 

 

91.8

 

 

 

0.4

 

 

 

6.8

 

 

 

0.3

 

 

 

98.6

 

 

 

0.7

 

CLO

 

 

103.5

 

 

 

1.4

 

 

 

12.5

 

 

 

0.3

 

 

 

116.0

 

 

 

1.7

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

137.1

 

 

 

19.5

 

 

 

0.3

 

 

 

0.1

 

 

 

137.4

 

 

 

19.6

 

Credit

 

 

104.3

 

 

 

20.0

 

 

 

0.5

 

 

 

0.2

 

 

 

104.8

 

 

 

20.2

 

ABS/CMBS (2)

 

 

20.8

 

 

 

2.3

 

 

 

0.1

 

 

 

—

 

 

 

20.9

 

 

 

2.3

 

CLO

 

 

75.5

 

 

 

9.2

 

 

 

0.5

 

 

 

0.2

 

 

 

76.0

 

 

 

9.4

 

Total fixed maturities

 

 

1,661.7

 

 

 

77.6

 

 

 

120.8

 

 

 

9.2

 

 

 

1,782.5

 

 

 

86.8

 

Equity securities

 

 

112.4

 

 

 

17.3

 

 

 

—

 

 

 

—

 

 

 

112.4

 

 

 

17.3

 

Other investments

 

 

(0.5

)

 

 

0.9

 

 

 

—

 

 

 

—

 

 

 

(0.5

)

 

 

0.9

 

Short-term investments

 

 

5.8

 

 

 

0.4

 

 

 

—

 

 

 

—

 

 

 

5.8

 

 

 

0.4

 

Total

 

$

1,779.4

 

 

$

96.2

 

 

$

120.8

 

 

$

9.2

 

 

$

1,900.2

 

 

$

105.4

 

 

December 31, 2014

 

Less Than One Year

 

 

One Year or Greater

 

 

Total

 

(in millions)

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments

 

$

55.0

 

 

$

0.2

 

 

$

15.7

 

 

$

0.1

 

 

$

70.7

 

 

$

0.3

 

Non-U.S. Governments

 

 

36.5

 

 

 

0.4

 

 

 

5.2

 

 

 

0.2

 

 

 

41.7

 

 

 

0.6

 

Obligations of states and political

   subdivisions

 

 

10.4

 

 

 

0.1

 

 

 

16.6

 

 

 

0.2

 

 

 

27.0

 

 

 

0.3

 

Credit-Financial

 

 

195.7

 

 

 

2.2

 

 

 

11.1

 

 

 

0.1

 

 

 

206.8

 

 

 

2.3

 

Credit-Industrial

 

 

240.8

 

 

 

3.3

 

 

 

12.2

 

 

 

0.2

 

 

 

253.0

 

 

 

3.5

 

Credit-Utility

 

 

63.1

 

 

 

3.8

 

 

 

1.9

 

 

 

0.1

 

 

 

65.0

 

 

 

3.9

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency

 

 

10.1

 

 

 

0.1

 

 

 

19.2

 

 

 

0.6

 

 

 

29.3

 

 

 

0.7

 

CMBS

 

 

49.3

 

 

 

0.1

 

 

 

6.0

 

 

 

0.1

 

 

 

55.3

 

 

 

0.2

 

ABS

 

 

68.8

 

 

 

0.2

 

 

 

8.1

 

 

 

0.3

 

 

 

76.9

 

 

 

0.5

 

CLO

 

 

60.4

 

 

 

0.5

 

 

 

—

 

 

 

—

 

 

 

60.4

 

 

 

0.5

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

123.7

 

 

 

9.3

 

 

 

11.2

 

 

 

0.1

 

 

 

134.9

 

 

 

9.4

 

Credit

 

 

122.3

 

 

 

12.3

 

 

 

0.9

 

 

 

0.2

 

 

 

123.2

 

 

 

12.5

 

ABS/CMBS

 

 

26.8

 

 

 

2.5

 

 

 

—

 

 

 

—

 

 

 

26.8

 

 

 

2.5

 

CLO

 

 

41.7

 

 

 

3.9

 

 

 

—

 

 

 

—

 

 

 

41.7

 

 

 

3.9

 

Total fixed maturities

 

 

1,104.6

 

 

 

38.9

 

 

 

108.1

 

 

 

2.2

 

 

 

1,212.7

 

 

 

41.1

 

Equity securities

 

 

53.6

 

 

 

5.1

 

 

 

—

 

 

 

—

 

 

 

53.6

 

 

 

5.1

 

Other investments

 

 

(0.9

)

 

 

1.3

 

 

 

—

 

 

 

—

 

 

 

(0.9

)

 

 

1.3

 

Short-term investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

1,157.3

 

 

$

45.3

 

 

$

108.1

 

 

$

2.2

 

 

$

1,265.4

 

 

$

47.5

 

 

(1) 

Unrealized losses less than one year are less than $0.1 million.

(2) 

Unrealized losses one year or greater are less than $0.1 million.

We regularly evaluate our investments for other than temporary impairment. For fixed maturity securities, the evaluation for a credit loss is generally based on the present value of expected cash flows of the security as compared to the amortized book value. For structured securities, frequency and severity of loss inputs are used in projecting future cash flows of the securities. Loss frequency is measured as the credit default rate, which includes such factors as loan-to-value ratios and credit scores of borrowers. For equity securities and other investments, the length of time and the amount of decline in fair value are the principal factors in determining other-than-temporary impairment. We also recognize other-than-temporary losses on fixed maturity securities that we intend to sell.

We hold a total of 6,941 securities, of which 3,410 were in an unrealized loss position for less than one year and 205 were in an unrealized loss position for a period one year or greater as of December 31, 2015. Unrealized losses greater than twelve months on fixed maturities were the result of a number of factors, including increased credit spreads, foreign currency fluctuations and higher market yields relative to the date the securities were purchased, and for structured securities, by the performance of the underlying collateral as well. In considering whether an investment is other-then-temporarily impaired or not, we also considered that we do not intend to sell the investment and it is unlikely that we will be required to sell the investment before recovery of its amortized cost bases, which may be maturity. In situations where we did not recognize other-than-temporary losses on investments in our equity portfolio, we have evaluated the near-term prospects of the investment in relation to the severity and duration of the impairment and based on that evaluation, have the ability and intent to hold these investments until a recovery of the cost basis. We do not consider these investments to be other-than-temporarily impaired at December 31, 2015.

 

We recognized other-than-temporary losses on our fixed maturities portfolio of $2.2 million, $1.2 million and $6.0 million for 2015, 2014 and 2013, respectively. We recognized other-than-temporary losses on our equity portfolio of $9.7 million, $1.1 million and $1.8 million for 2015, 2014 and 2013, respectively.

Net Investment Income and Realized Gains and Losses

Investment income and expenses were as follows:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividends on fixed maturities

 

$

78.2

 

 

$

76.3

 

 

$

87.7

 

Dividends on equity securities

 

 

16.3

 

 

 

15.8

 

 

 

17.7

 

Interest on short-term and other investments

 

 

7.2

 

 

 

5.3

 

 

 

5.0

 

Other

 

 

—

 

 

 

4.2

 

 

 

3.7

 

Investment income

 

 

101.7

 

 

 

101.6

 

 

 

114.1

 

Investment expenses

 

 

(16.1

)

 

 

(15.0

)

 

 

(14.1

)

Net investment income

 

$

85.6

 

 

$

86.6

 

 

$

100.0

 

 

 The following table presents our gross realized investment gains (losses) and other:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Realized gains

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities

 

$

12.3

 

 

$

17.0

 

 

$

33.5

 

Equity securities

 

 

40.5

 

 

 

29.2

 

 

 

59.1

 

Other investments

 

 

59.3

 

 

 

44.8

 

 

 

38.9

 

Short-term investments

 

 

1.2

 

 

 

0.1

 

 

 

0.1

 

Other assets

 

 

—

 

 

 

2.0

 

 

 

—

 

Gain on sale of real estate holdings

 

 

0.3

 

 

 

43.3

 

 

 

—

 

Gross realized investment gains and other

 

 

113.6

 

 

 

136.4

 

 

 

131.6

 

Realized losses

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities

 

 

(23.5

)

 

 

(12.2

)

 

 

(19.6

)

Equity securities

 

 

(6.6

)

 

 

(0.6

)

 

 

(1.4

)

Other investments

 

 

(42.7

)

 

 

(21.8

)

 

 

(30.8

)

Short-term investments

 

 

(1.8

)

 

 

(0.9

)

 

 

(0.7

)

Other assets

 

 

—

 

 

 

(4.6

)

 

 

—

 

Other-than-temporary impairment losses on fixed

   maturities

 

 

(2.2

)

 

 

(1.2

)

 

 

(6.0

)

Other-than-temporary impairment losses on equity

   securities

 

 

(9.7

)

 

 

(1.1

)

 

 

(1.8

)

Gross realized investment and other losses

 

 

(86.5

)

 

 

(42.4

)

 

 

(60.3

)

Net realized investment gains and other

 

$

27.1

 

 

$

94.0

 

 

$

71.3

 

 

Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments are summarized as follows:

 

(in millions)

 

Fixed

Maturities

 

 

Equity

Maturities

 

 

Other

Investments

 

 

Other

 

 

Real Estate Holdings

 

 

Tax

Effects

 

 

Total

 

Year Ended December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized before impairments

 

$

(11.2

)

 

$

33.9

 

 

$

16.6

 

 

$

(0.6

)

 

$

0.3

 

 

$

(15.3

)

 

$

23.7

 

Realized - impairments

 

 

(2.2

)

 

 

(9.7

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4.2

 

 

 

(7.7

)

Change in unrealized

 

 

(65.3

)

 

 

(64.1

)

 

 

1.5

 

 

 

(0.4

)

 

 

—

 

 

 

37.6

 

 

 

(90.7

)

Year Ended December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized before impairments

 

$

4.8

 

 

$

28.6

 

 

$

23.0

 

 

$

(3.4

)

 

$

43.3

 

 

$

(34.0

)

 

$

62.3

 

Realized - impairments

 

 

(1.2

)

 

 

(1.1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.8

 

 

 

(1.5

)

Change in unrealized

 

 

(30.5

)

 

 

(8.4

)

 

 

2.5

 

 

 

—

 

 

 

—

 

 

 

3.1

 

 

 

(33.3

)

Year Ended December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized before impairments

 

$

13.9

 

 

$

57.7

 

 

$

8.1

 

 

$

(0.6

)

 

$

—

 

 

$

(26.2

)

 

$

52.9

 

Realized - impairments

 

 

(6.0

)

 

 

(1.8

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2.7

 

 

 

(5.1

)

Change in unrealized

 

 

(102.6

)

 

 

39.5

 

 

 

4.5

 

 

 

—

 

 

 

—

 

 

 

18.4

 

 

 

(40.2

)

 

Foreign Currency Exchange Forward Contracts

We entered into foreign currency exchange forward contracts to manage currency exposure on losses related to certain global catastrophe events, manage currency exposure on our Canadian dollar (“CAD”) investment portfolio, minimize negative impacts to our investment portfolio returns, manage currency exposure on certain Euro (“EUR”) denominated investments and gain exposure to a total return strategy which invests in multiple currencies.  The currency forward contracts are carried at fair value in our Consolidated Balance Sheets in “Other investments”.  The realized and unrealized gains and losses are included in “Net realized investment and other gains” in our Consolidated Statements of Income.

The fair value of our foreign currency exchange forward contracts as of December 31 was as follows:

 

(in millions)

 

December 31,

2015

 

 

December 31,

2014

 

Global catastrophe (1)

 

$

—

 

 

$

(0.6

)

Canadian dollar (CAD) currency exposure

 

 

5.2

 

 

 

(0.6

)

Euro (EUR) investment exposure

 

 

2.9

 

 

 

2.3

 

Investment portfolio return strategy (2)

 

 

—

 

 

 

—

 

Total return strategy (3)

 

 

(0.8

)

 

 

—

 

 

 

$

7.3

 

 

$

1.1

 

 

(1) 

Program not renewed in 2015.

(2) 

Program inception in 2015 and fair value is less than $0.1 million at December 31, 2015.

(3) 

Program inception in 2015.

 

The following table presents our gross investment realized gains and losses on our foreign currency exchange forward contracts:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Realized gains

 

 

 

 

 

 

 

 

 

 

 

 

Global catastrophe

 

$

0.5

 

 

$

4.6

 

 

$

7.8

 

Canadian dollar (CAD) currency exposure

 

 

21.0

 

 

 

4.6

 

 

 

—

 

Euro (EUR) investment exposure

 

 

8.5

 

 

 

6.0

 

 

 

—

 

Investment portfolio return strategy

 

 

5.1

 

 

 

—

 

 

 

—

 

Total return strategy

 

 

1.4

 

 

 

—

 

 

 

—

 

Gross realized investment gains

 

 

36.5

 

 

 

15.2

 

 

 

7.8

 

Realized losses

 

 

 

 

 

 

 

 

 

 

 

 

Global catastrophe

 

 

(2.3

)

 

 

(4.9

)

 

 

(10.4

)

Canadian dollar (CAD) currency exposure

 

 

(7.3

)

 

 

(2.2

)

 

 

—

 

Euro (EUR) investment exposure

 

 

(2.3

)

 

 

(2.4

)

 

 

—

 

Investment portfolio return strategy

 

 

(7.2

)

 

 

—

 

 

 

—

 

Total return strategy

 

 

(2.2

)

 

 

—

 

 

 

—

 

Gross realized investment losses

 

 

(21.3

)

 

 

(9.5

)

 

 

(10.4

)

Net realized investment gains (losses) on foreign

   currency exchange forward contracts

 

$

15.2

 

 

$

5.7

 

 

$

(2.6

)

 

Regulatory Deposits, Pledged Securities and Letters of Credit

At December 31, 2015, the amortized cost and fair value of investments on deposit with U.S., Canadian and various agencies for regulatory purposes were $187.1 million and $192.8 million, respectively. At December 31, 2014, the amortized cost and fair value of investments on deposit with U.S. and various agencies for regulatory purposes were $186.6 million and $194.2 million, respectively.

 

At December 31, 2015, investments with an amortized cost of $34.9 million and fair value of $35.0 million were pledged as collateral in support of irrevocable letters of credit (“LOC’s”) in the amount of $29.3 million issued under the terms of certain reinsurance agreements in respect of reported loss and loss expense reserves. At December 31, 2014, investments with an amortized cost of $55.0 million and fair value of $55.3 million were pledged as collateral in support of irrevocable LOC’s in the amount of $43.6 million issued under the terms of certain reinsurance agreements in respect of reported loss and loss expense reserves.

 

Our Corporate member’s capital supporting our Lloyd’s business was $202.5 million and $217.9 million at December 31, 2015 and 2014, respectively.

Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability, or in the absence of a principal market, the most advantageous market. Market participants are buyers and sellers in the principal (or most advantageous) market that are independent, knowledgeable, able to transact for the asset or liability and willing to transfer the asset or liability.

Valuation techniques consistent with the market and income approach are used to measure fair value. The inputs of these valuation techniques are categorized into three levels.

 

·

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the reporting date. We define actively traded as a security that has traded in the past seven days. We receive one quote per instrument for Level 1 inputs.

 

·

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. We receive one quote per instrument for Level 2 inputs.

 

·

Level 3 inputs are unobservable inputs. Unobservable inputs reflect our own assumptions about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances.

We receive fair value prices from third-party pricing services and our outside investment managers. These prices are determined using observable market information such as dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. We have reviewed the processes used by the third-party providers for pricing the securities, and have determined that these processes result in fair values consistent with GAAP requirements. In addition, we review these prices for reasonableness, and have not adjusted any prices received from the third-party providers as of December 31, 2015 or 2014. A description of the valuation techniques we use to measure assets at fair value is as follows:

Fixed Maturities (Available-for-Sale) Levels 1 and 2:

 

·

United States Treasury securities are typically valued using Level 1 inputs. For these securities, we obtain fair value measurements from third-party pricing services using quoted prices (unadjusted) in active markets at the reporting date.

 

·

United States Government agencies, non-U.S. Government securities, obligations of states and political subdivisions, credit securities and foreign denominated government and credit securities are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, yield curves, live trading levels, trade execution data, credit information and the security’s terms and conditions, among other things.

 

·

CMO/MBS agency, CMO/MBS non-agency, CMBS, ABS and CLO securities, both domestic and foreign, are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things.

Equity Securities Level 1: Equity securities are principally reported at fair value using Level 1 inputs. For these securities, we obtain fair value measurements from a third-party pricing service using quoted prices (unadjusted) in active markets at the reporting date.

Equity Securities Level 2: We own interests in a mutual fund that is reported at fair value using Level 2 inputs. The valuation is based on the funds’ net asset value per share, at the end of each month. The underlying assets in the funds are valued primarily on the basis of closing market quotations or official closing prices on each valuation day.

Equity Securities Level 3: We own certain equity securities that are reported at fair value using Level 3 inputs. The valuation techniques for these securities include the following:

 

·

Fair value measurements are obtained from the National Association of Insurance Commissioners’ Security Valuation Office at the reporting date.

 

·

Fair value measurements for an investment in an equity fund obtained by applying final prices provided by the administrator of the fund, which is based upon certain estimates and assumptions.

Other Investments Level 2: Foreign regulatory deposits are assets held in trust in jurisdictions where there is a legal and regulatory requirement to maintain funds locally in order to protect policyholders. Lloyd’s is the appointed investment manager for the funds. These assets are invested in short-term government securities, agency securities and corporate bonds and are valued using Level 2 inputs based upon values obtained from Lloyd’s. Foreign currency future contracts are valued by our counterparty using market driven foreign currency exchange rates and are considered Level 2 investments.

Short-term Investments: Short-term investments are principally reported at fair value using Level 1 inputs, with the exception of short-term corporate and governmental bonds reported at fair value using Level 2 inputs as described in the fixed maturities section above. Values for the investments categorized as Level 1 are obtained from various financial institutions as of the reporting date.

Transfers Between Level 1 and Level 2 Securities: There were no transfers between Level 1 and Level 2 securities during 2015 or 2014.

Based on an analysis of the inputs, our financial assets measured at fair value on a recurring basis have been categorized as follows:

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

(in millions)

 

December 31, 2015

 

 

Level 1 (a)

 

 

Level 2 (b)

 

 

Level 3 (c)

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments

 

$

207.9

 

 

$

150.4

 

 

$

57.5

 

 

$

—

 

Non-U.S. Governments

 

 

91.7

 

 

 

—

 

 

 

91.7

 

 

 

—

 

Obligations of states and political subdivisions

 

 

488.0

 

 

 

—

 

 

 

488.0

 

 

 

—

 

Credit-Financial

 

 

535.9

 

 

 

—

 

 

 

535.9

 

 

 

—

 

Credit-Industrial

 

 

517.9

 

 

 

—

 

 

 

517.9

 

 

 

—

 

Credit-Utility

 

 

156.2

 

 

 

—

 

 

 

156.2

 

 

 

—

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency

 

 

131.0

 

 

 

—

 

 

 

131.0

 

 

 

—

 

CMO/MBS-non agency

 

 

11.5

 

 

 

—

 

 

 

11.5

 

 

 

—

 

CMBS

 

 

181.2

 

 

 

—

 

 

 

181.2

 

 

 

—

 

ABS

 

 

110.9

 

 

 

—

 

 

 

110.9

 

 

 

—

 

CLO

 

 

135.6

 

 

 

—

 

 

 

135.6

 

 

 

—

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

151.2

 

 

 

—

 

 

 

151.2

 

 

 

—

 

Credit

 

 

110.1

 

 

 

—

 

 

 

110.1

 

 

 

—

 

ABS/CMBS

 

 

21.9

 

 

 

—

 

 

 

21.9

 

 

 

—

 

CLO

 

 

76.3

 

 

 

—

 

 

 

76.3

 

 

 

—

 

Total fixed maturities

 

 

2,927.3

 

 

 

150.4

 

 

 

2,776.9

 

 

 

—

 

Equity securities

 

 

463.9

 

 

 

457.6

 

 

 

5.6

 

 

 

0.7

 

Other investments

 

 

97.2

 

 

 

—

 

 

 

97.2

 

 

 

—

 

Short-term investments

 

 

210.8

 

 

 

203.6

 

 

 

7.2

 

 

 

—

 

 

 

$

3,699.2

 

 

$

811.6

 

 

$

2,886.9

 

 

$

0.7

 

 

(a) 

Quoted prices in active markets for identical assets

(b) 

Significant other observable inputs

(c) 

Significant unobservable inputs

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

(in millions)

 

December 31, 2014

 

 

Level 1 (a)

 

 

Level 2 (b)

 

 

Level 3 (c)

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments

 

$

185.0

 

 

$

99.2

 

 

$

85.8

 

 

$

—

 

Non-U.S. Governments

 

 

79.9

 

 

 

—

 

 

 

79.9

 

 

 

—

 

Obligations of states and political subdivisions

 

 

490.7

 

 

 

—

 

 

 

490.7

 

 

 

—

 

Credit-Financial

 

 

518.1

 

 

 

—

 

 

 

518.1

 

 

 

—

 

Credit-Industrial

 

 

499.6

 

 

 

—

 

 

 

499.6

 

 

 

—

 

Credit-Utility

 

 

142.0

 

 

 

—

 

 

 

142.0

 

 

 

—

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency

 

 

175.3

 

 

 

—

 

 

 

175.3

 

 

 

—

 

CMO/MBS-non agency

 

 

14.0

 

 

 

—

 

 

 

14.0

 

 

 

—

 

CMBS

 

 

180.0

 

 

 

—

 

 

 

180.0

 

 

 

—

 

ABS

 

 

142.6

 

 

 

—

 

 

 

142.6

 

 

 

—

 

CLO

 

 

78.4

 

 

 

—

 

 

 

78.4

 

 

 

—

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

140.2

 

 

 

—

 

 

 

140.2

 

 

 

—

 

Credit

 

 

126.0

 

 

 

—

 

 

 

126.0

 

 

 

—

 

ABS/CMBS

 

 

27.2

 

 

 

—

 

 

 

27.2

 

 

 

—

 

CLO

 

 

41.7

 

 

 

—

 

 

 

41.7

 

 

 

—

 

Total fixed maturities

 

 

2,840.7

 

 

 

99.2

 

 

 

2,741.5

 

 

 

—

 

Equity securities

 

 

503.8

 

 

 

485.4

 

 

 

17.5

 

 

 

0.9

 

Other investments

 

 

97.3

 

 

 

—

 

 

 

97.3

 

 

 

—

 

Short-term investments

 

 

258.3

 

 

 

256.4

 

 

 

1.9

 

 

 

—

 

 

 

$

3,700.1

 

 

$

841.0

 

 

$

2,858.2

 

 

$

0.9

 

 

(a) 

Quoted prices in active markets for identical assets

(b) 

Significant other observable inputs

(c) 

Significant unobservable inputs

The fair value measurements in the tables above do not equal “Total investments” on our Consolidated Balance Sheets as they exclude certain other investments that are accounted for under the equity-method of accounting.

A reconciliation of the beginning and ending balances for the investments categorized as Level 3 are as follows:

Fair Value Measurements Using Observable Inputs (Level 3)

 

(in millions)

 

Equity

Securities

 

 

Total

 

Beginning balance, January 1, 2015

 

$

0.9

 

 

$

0.9

 

Transfers into Level 3

 

 

—

 

 

 

—

 

Transfers out of Level 3

 

 

—

 

 

 

—

 

Total gains or losses (realized/unrealized):

 

 

—

 

 

 

 

 

Included in net income (loss)

 

 

—

 

 

 

—

 

Included in other comprehensive income (loss)

 

 

—

 

 

 

—

 

Purchases, issuances, sales, and settlements

 

 

—

 

 

 

 

 

Purchases

 

 

—

 

 

 

—

 

Issuances

 

 

—

 

 

 

—

 

Sales

 

 

(0.2

)

 

 

(0.2

)

Settlements

 

 

—

 

 

 

—

 

Ending balance, December 31, 2015

 

$

0.7

 

 

$

0.7

 

Amount of total gains or losses for the year included in net

   income (loss) attributable to the change in unrealized gains

   or losses relating to assets still held at December 31, 2015

 

$

—

 

 

$

—

 

 

(in millions)

 

Equity

Securities

 

 

Other

Assets

 

 

Total

 

Beginning balance, January 1, 2014

 

$

1.3

 

 

$

2.6

 

 

$

3.9

 

Transfers into Level 3

 

 

—

 

 

 

—

 

 

 

—

 

Transfers out of Level 3

 

 

—

 

 

 

—

 

 

 

—

 

Total gains or losses (realized/unrealized):

 

 

 

 

 

 

 

 

 

 

 

 

Included in net income (loss)

 

 

—

 

 

 

—

 

 

 

—

 

Included in other comprehensive income (loss)

 

 

0.1

 

 

 

—

 

 

 

0.1

 

Purchases, issuances, sales, and settlements

 

 

 

 

 

 

 

 

 

 

 

 

Purchases

 

 

—

 

 

 

—

 

 

 

—

 

Issuances

 

 

—

 

 

 

—

 

 

 

—

 

Sales

 

 

(0.5

)

 

 

—

 

 

 

(0.5

)

Settlements

 

 

—

 

 

 

(2.6

)

 

 

(2.6

)

Ending balance, December 31, 2014

 

$

0.9

 

 

$

—

 

 

$

0.9

 

Amount of total gains or losses for the year included in net

   income (loss) attributable to the change in unrealized gains

   or losses relating to assets still held at December 31, 2014

 

$

—

 

 

$

—

 

 

$

—

 

 

At December 31, 2015 and 2014, we did not have any financial assets or financial liabilities measured at fair value on a nonrecurring basis or any financial liabilities on a recurring basis.

v3.3.1.900
Reinsurance
 12 Months Ended
Dec. 31, 2015
Insurance [Abstract]  
Reinsurance

3.

Reinsurance

We reinsure certain risks with other insurance companies. Such arrangements serve to limit our maximum loss on certain individual risks as well as on catastrophes and large or unusually hazardous risks. We are liable for reinsurance ceded in the event our reinsurers do not meet their obligations. Thus, a credit exposure exists with respect to reinsurance ceded to the extent that any reinsurer is unable or unwilling to meet the obligations assumed under the reinsurance contracts. Our allowance for uncollectible reinsurance balances receivable on paid losses and incurred claims was $3.2 million and $3.4 million as of December 31, 2015 and 2014, respectively. Under certain reinsurance agreements, collateral, including letters of credit, is held to secure performance of reinsurers in meeting their obligations. The amount of such collateral was $421.6 million and $359.4 million at December 31, 2015 and 2014, respectively. The collateral we hold does not apply to our entire outstanding reinsurance recoverable. Rather, collateral is provided on an individual contract basis as appropriate. For each individual reinsurer, the collateral held may exceed or fall below the total outstanding recoverable from that individual reinsurer.

The long-term nature of the reinsurance contracts creates a credit risk to us over time arising from potentially uncollectible reinsurance. To mitigate that counterparty risk, we evaluate our reinsurers to assess their financial condition. The factors that underlie these reviews include a financial risk assessment as well as an internal assessment of the capitalization and the operational risk of the reinsurer. As a result of these reviews, we may make changes to the approved markets that are used in both our treaty and facultative reinsurance programs.

Estimated losses recoverable from reinsurers and the ceded portion of unearned premiums are reported as assets in our Consolidated Balance Sheets. Included in “Reinsurance recoverables” are paid loss recoverables of $130.8 million and $91.9 million as of December 31, 2015 and 2014, respectively. “Earned Premiums” and “Losses and loss adjustment expenses” are reported net of reinsurance in our Consolidated Statements of Income.

Losses and loss adjustment expenses of $766.1 million, $747.4 million and $742.0 million for the years ended December 31, 2015, 2014 and 2013, respectively, are net of amounts ceded to reinsurers of $284.6 million, $246.6 million and $292.8 million, respectively.

We are required to accept certain assigned risks and other legally mandated reinsurance obligations. Prior to the mid-1980s, we assumed various forms of casualty reinsurance for which we continue to maintain reserves for losses and loss adjustment expenses (see Note 19, “Run-off Lines”). For such assumed reinsurance transactions, we engage in various monitoring steps that are common with assumed reinsurance such as ongoing claims reviews. We currently assume property related reinsurance primarily through our subsidiary, Argo Re and casualty related reinsurance primarily through Syndicate 1200 (see Note 18, “Segment Information”).

Premiums were as follows:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Direct written premiums

 

$

1,651.4

 

 

$

1,585.5

 

 

$

1,576.1

 

Reinsurance ceded to other companies

 

 

(610.0

)

 

 

(537.5

)

 

 

(537.1

)

Reinsurance assumed from other companies

 

 

360.7

 

 

 

319.9

 

 

 

312.3

 

Net written premiums

 

$

1,402.1

 

 

$

1,367.9

 

 

$

1,351.3

 

Direct earned premiums

 

$

1,602.2

 

 

$

1,551.8

 

 

$

1,541.0

 

Reinsurance ceded to other companies

 

 

(563.7

)

 

 

(524.8

)

 

 

(533.7

)

Reinsurance assumed from other companies

 

 

333.4

 

 

 

311.1

 

 

 

296.5

 

Net earned premiums

 

$

1,371.9

 

 

$

1,338.1

 

 

$

1,303.8

 

Percentage of reinsurance assumed to net earned

   premiums

 

 

24.3

%

 

 

23.2

%

 

 

22.7

%

 
v3.3.1.900
Derivative Instruments
 12 Months Ended
Dec. 31, 2015
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative Instruments

4.

Derivative Instruments

Through our subsidiary Argo Re, in December 2011 we entered into a reinsurance contract with a special purpose reinsurance company that provided us with protection against certain severe catastrophe events and the occurrence of multiple significant catastrophe events during the same year. The contract was effective beginning on January 1, 2012 and provided coverage of $100 million for hurricanes and earthquakes (including fire) in the U.S. and covered losses for the first and subsequent events on a per-occurrence basis over a 24-month coverage period. The contract expired in December 2013. This transaction ignored the effects of inuring reinsurance, creating the remote possibility of a double recovery on covered events, and was therefore deemed to be a derivative.

“Other reinsurance-related expenses” for the year ended December 31, 2013 were $19.2 million, which were incurred due to the change in the fair value of the derivative, principally due to the passage of the transaction’s risk coverage term.

The special purpose reinsurance company that was the counterparty to this transaction was a variable interest entity under the provisions of ASC Topic 810-10, “Consolidation.” Argo Group was not the primary beneficiary of this entity and was therefore not required to consolidate it in our consolidated financial statements.

v3.3.1.900
Reserves for Losses and Loss Adjustment Expenses
 12 Months Ended
Dec. 31, 2015
Insurance [Abstract]  
Reserves for Losses and Loss Adjustment Expenses

5.

Reserves for Losses and Loss Adjustment Expenses

The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”):

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Net reserves beginning of the year

 

$

2,137.1

 

 

$

2,107.6

 

 

$

2,110.9

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Losses and LAE incurred during current calendar

   year, net of reinsurance:

 

 

 

 

 

 

 

 

 

 

 

 

Current accident year

 

 

798.5

 

 

 

785.1

 

 

 

775.6

 

Prior accident years

 

 

(32.4

)

 

 

(37.7

)

 

 

(33.6

)

Losses and LAE incurred during calendar year, net

   of reinsurance

 

 

766.1

 

 

 

747.4

 

 

 

742.0

 

Deduct:

 

 

 

 

 

 

 

 

 

 

 

 

Losses and LAE payments made during current

   calendar year, net of reinsurance:

 

 

 

 

 

 

 

 

 

 

 

 

Current accident year

 

 

169.0

 

 

 

185.9

 

 

 

199.3

 

Prior accident years

 

 

564.5

 

 

 

550.8

 

 

 

554.2

 

Losses and LAE payments made during current

   calendar year, net of reinsurance:

 

 

733.5

 

 

 

736.7

 

 

 

753.5

 

Change in participation interest (1)

 

 

(1.2

)

 

 

37.8

 

 

 

10.4

 

Foreign exchange adjustments

 

 

(35.2

)

 

 

(19.0

)

 

 

(2.2

)

Net reserves - end of year

 

 

2,133.3

 

 

 

2,137.1

 

 

 

2,107.6

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Reinsurance recoverables on unpaid losses and LAE,

   end of year

 

 

990.3

 

 

 

905.3

 

 

 

1,122.7

 

Gross reserves - end of year

 

$

3,123.6

 

 

$

3,042.4

 

 

$

3,230.3

 

 

(1) 

Amount represents (decrease) increase in reserves due to change in our syndicate participation.

Reserves for losses and LAE represent the estimated indemnity cost and related adjustment expenses necessary to investigate and settle claims. Such estimates are based upon individual case estimates for reported claims, estimates from ceding companies for reinsurance assumed and actuarial estimates for losses that have been incurred but not yet reported to the insurer. Any change in probable ultimate liabilities is reflected in current operating results.

Impacting losses and LAE for the year ended December 31, 2015 was $32.4 million in favorable prior years’ loss reserve development comprised of the following: $32.1 million of net favorable development in the Excess and Surplus Lines segment primarily the result of favorable development in the general and products liability lines and commercial automobile, partially offset by unfavorable development in property lines; $9.1 million of net unfavorable development in the Commercial Specialty segment, primarily driven by unfavorable development in general liability and workers compensation due to increases in claim severity, partially offset by favorable development in short-tail, directors and officers and auto liability lines; $7.7 million of net favorable development in the International Specialty segment primarily driven by favorable development in Argo Insurance Bermuda and Argo Re, partially offset by unfavorable development in the Brazil unit; $10.3 million of favorable development in the Syndicate 1200 segment primarily driven by favorable development in various property classes, as well as favorable development in general liability, partially offset by unfavorable development in accident & health lines; $8.6 million of unfavorable development in the Run-off Lines segment primarily caused by unfavorable development in workers compensation lines driven by increasing medical costs on older claims and discount unwind, as well as in asbestos and environmental liability driven by increasing defense costs in primary asbestos, offset in part by favorable development in run-off reinsurance claims.

Impacting losses and LAE for the year ended December 31, 2014 was $37.7 million in favorable prior years’ loss reserve development comprised of the following: $47.4 million of net favorable development in the Excess and Surplus Lines segment primarily caused by favorable development in the general and products liability lines, partially offset by unfavorable development in commercial automobile; $6.8 million of net unfavorable development in the Commercial Specialty segment, primarily driven by unfavorable development in general liability due to increases in claim severity, as well as unfavorable development in auto liability lines, partially offset by favorable development in short-tail and workers compensation lines; $0.4 million of net favorable development in the International Specialty segment; $21.1 million of favorable development in the Syndicate 1200 segment primarily driven by favorable development in various property classes, as well as favorable development in professional indemnity, partially offset by unfavorable development in general liability; $24.4 million of unfavorable development in the Run-off Lines segment primarily caused by unfavorable development in workers compensation lines driven by increasing medical costs on older claims, as well as in asbestos liability driven by increasing defense costs on primary business and activity on assumed business including the impact of arbitrations and commutations.

Net favorable loss development recognized in 2013 for prior accident years was a $33.6 million reduction to losses and LAE. The Excess and Surplus Lines segment had net favorable loss development of $43.9 million primarily due to favorable development in the general and products liability lines of business, partially offset by unfavorable development in commercial automobile losses. The Commercial Specialty segment had net unfavorable loss development of $1.1 million primarily attributable to unfavorable development in general liability due to increases in claim severity and unfavorable development in automobile liability, partially offset by favorable development in workers compensation and short-tail lines. The International Specialty segment had net negligible prior year loss development. The Syndicate 1200 segment had net favorable loss development of $6.2 million primarily attributable to favorable development in various property classes, partially offset by unfavorable development in general liability. The Run-off Lines segment had net unfavorable development of $15.5 million primarily due to unfavorable development in the asbestos liability driven by higher defense costs for claims from general liability policies written on a direct basis, as well as commutation and settlement activity, and unfavorable development in the medical malpractice liability line due to the loss of the New York Liquidation Bureau funding for structured settlement annuity payments.

In the opinion of management, our reserves represent the best estimate of our ultimate liabilities, based on currently known facts, current law, current technology and assumptions considered reasonable where facts are not known. Due to the significant uncertainties and related management judgments, there can be no assurance that future loss development, favorable or unfavorable, will not occur.

Pension-type reserves (tabular reserves) are indemnity reserves that are calculated using discounts determined with reference to actuarial tables, which incorporate interest and contingencies such as mortality, remarriage, inflation or recovery from disability applied to a reasonably determinable payment stream. We discounted certain workers compensation pension-type reserves using a maximum interest rate of 3.5% in 2015, 2014 and 2013. The amount of unamortized discount was $14.9 million, $17.6 million and $19.5 million at December 31, 2015, 2014 and 2013, respectively.

v3.3.1.900
Junior Subordinated Debentures
 12 Months Ended
Dec. 31, 2015
Junior Subordinated Debentures [Member]  
Junior Subordinated Debentures

6.

Junior Subordinated Debentures

Through a series of trusts, that are wholly-owned subsidiaries (non-consolidated), we issued debt. The debentures are variable with the rate being reset quarterly and subject to certain interest rate ceilings. Interest payments are payable quarterly. The debentures are all unsecured and are subordinated to other indebtedness. At December 31, 2015 and 2014, all debentures were eligible for redemption subject to certain terms and conditions at a price equal to 100% of the principal plus accrued and unpaid interest.

On July 16, 2014, Argo Group US, Inc. purchased the outstanding PXRE Capital Trust V $20,000,000 Junior Subordinated Debt Securities (“Capital Trust V”) at a discount equal to 90.0% of the principal amount plus accrued and unpaid interest through the date of purchase for a total price of $18.2 million, resulting in the recognition of a $2.0 million pre-tax realized gain.

A summary of our outstanding junior subordinated debentures is presented below:

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issue Date

 

Trust Preferred Pools

 

Maturity

 

Rate Structure

 

Interest Rate at December 31, 2015

 

 

Amount

 

Argo Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

05/15/2003

 

PXRE Capital Statutory Trust II

 

05/15/2033

 

3M LIBOR + 4.10%

 

 

4.46%

 

 

$

18.1

 

11/06/2003

 

PXRE Capital Trust VI

 

09/30/2033

 

3M LIBOR + 3.90%

 

 

4.51%

 

 

 

10.3

 

Argo Group US

 

 

 

 

 

 

 

 

 

 

 

 

 

 

05/15/2003

 

Argonaut Group Statutory Trust I

 

05/15/2033

 

3M LIBOR + 4.10%

 

 

4.46%

 

 

 

15.5

 

12/16/2003

 

Argonaut Group Statutory Trust III

 

01/08/2034

 

3M LIBOR + 4.10%

 

 

4.42%

 

 

 

12.3

 

04/29/2004

 

Argonaut Group Statutory Trust IV

 

04/29/2034

 

3M LIBOR + 3.85%

 

 

4.21%

 

 

 

13.4

 

05/26/2004

 

Argonaut Group Statutory Trust V

 

05/24/2034

 

3M LIBOR + 3.85%

 

 

4.23%

 

 

 

12.3

 

05/12/2004

 

Argonaut Group Statutory Trust VI

 

05/12/2034

 

3M LIBOR + 3.80%

 

 

4.33%

 

 

 

13.4

 

09/17/2004

 

Argonaut Group Statutory Trust VII

 

12/15/2034

 

3M LIBOR + 3.60%

 

 

4.11%

 

 

 

15.5

 

09/22/2004

 

Argonaut Group Statutory Trust VIII

 

09/22/2034

 

3M LIBOR + 3.55%

 

 

4.14%

 

 

 

15.5

 

10/22/2004

 

Argonaut Group Statutory Trust IX

 

12/15/2034

 

3M LIBOR + 3.60%

 

 

4.11%

 

 

 

15.5

 

09/15/2005

 

Argonaut Group Statutory Trust X

 

09/15/2035

 

3M LIBOR + 3.40%

 

 

3.91%

 

 

 

30.9

 

 

 

Total Outstanding

 

 

 

 

 

 

 

 

 

$

172.7

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issue Date

 

Trust Preferred Pools

 

Maturity

 

Rate Structure

 

Interest Rate at December 31, 2014

 

 

Amount

 

Argo Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

05/15/2003

 

PXRE Capital Statutory Trust II

 

05/15/2033

 

3M LIBOR + 4.10%

 

 

4.33%

 

 

$

18.1

 

11/06/2003

 

PXRE Capital Trust VI

 

09/30/2033

 

3M LIBOR + 3.90%

 

 

4.16%

 

 

 

10.3

 

Argo Group US

 

 

 

 

 

 

 

 

 

 

 

 

 

 

05/15/2003

 

Argonaut Group Statutory Trust I

 

05/15/2033

 

3M LIBOR + 4.10%

 

 

4.33%

 

 

 

15.5

 

12/16/2003

 

Argonaut Group Statutory Trust III

 

01/08/2034

 

3M LIBOR + 4.10%

 

 

4.33%

 

 

 

12.3

 

04/29/2004

 

Argonaut Group Statutory Trust IV

 

04/29/2034

 

3M LIBOR + 3.85%

 

 

4.08%

 

 

 

13.4

 

05/26/2004

 

Argonaut Group Statutory Trust V

 

05/24/2034

 

3M LIBOR + 3.85%

 

 

4.08%

 

 

 

12.3

 

05/12/2004

 

Argonaut Group Statutory Trust VI

 

05/12/2034

 

3M LIBOR + 3.80%

 

 

4.04%

 

 

 

13.4

 

09/17/2004

 

Argonaut Group Statutory Trust VII

 

12/15/2034

 

3M LIBOR + 3.60%

 

 

3.84%

 

 

 

15.5

 

09/22/2004

 

Argonaut Group Statutory Trust VIII

 

09/22/2034

 

3M LIBOR + 3.55%

 

 

3.80%

 

 

 

15.5

 

10/22/2004

 

Argonaut Group Statutory Trust IX

 

12/15/2034

 

3M LIBOR + 3.60%

 

 

3.84%

 

 

 

15.5

 

09/15/2005

 

Argonaut Group Statutory Trust X

 

09/15/2035

 

3M LIBOR + 3.40%

 

 

3.64%

 

 

 

30.9

 

 

 

Total Outstanding

 

 

 

 

 

 

 

 

 

$

172.7

 

 
v3.3.1.900
Other Indebtedness
 12 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Other Indebtedness

7.

Other Indebtedness

Floating Rate Loan Stock

This debt was assumed through the acquisition of Syndicate 1200. These notes are unsecured. At December 31, 2015 and 2014, all notes were eligible for redemption subject to certain terms and conditions at a price equal to 100% of the principal plus accrued and unpaid interest. Interest on the U.S. Dollar and Euro notes is due semiannually and quarterly, respectively. A summary of the notes outstanding at December 31, 2015 and 2014 is presented below:

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issue Date

 

Currency

 

Maturity

 

Rate Structure

 

Interest Rate at

December 31, 2015

 

 

Amount

 

12/08/2004

 

U.S. Dollar

 

11/15/2034

 

6 month LIBOR + 4.2%

 

 

4.66%

 

 

$

6.5

 

09/06/2005

 

Euro

 

08/22/2035

 

3 month LIBOR + 4.0%

 

 

3.91%

 

 

 

12.7

 

10/31/2006

 

U.S. Dollar

 

01/15/2036

 

6 month LIBOR + 4.0%

 

 

4.46%

 

 

 

10.0

 

10/31/2006

 

Euro

 

11/22/2036

 

3 month LIBOR + 4.0%

 

 

3.91%

 

 

 

11.1

 

06/08/2007

 

Euro

 

09/15/2037

 

3 month LIBOR + 3.9%

 

 

3.86%

 

 

 

14.3

 

 

 

 

 

 

 

 

 

 

 

 

 

$

54.6

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issue Date

 

Currency

 

Maturity

 

Rate Structure

 

Interest Rate at

December 31, 2014

 

 

Amount

 

12/08/2004

 

U.S. Dollar

 

11/15/2034

 

6 month LIBOR + 4.2%

 

 

4.53%

 

 

$

6.5

 

09/06/2005

 

Euro

 

08/22/2035

 

3 month LIBOR + 4.0%

 

 

4.08%

 

 

 

14.9

 

10/31/2006

 

U.S. Dollar

 

01/15/2036

 

6 month LIBOR + 4.0%

 

 

4.33%

 

 

 

10.0

 

10/31/2006

 

Euro

 

11/22/2036

 

3 month LIBOR + 4.0%

 

 

4.08%

 

 

 

13.1

 

06/08/2007

 

Euro

 

09/15/2037

 

3 month LIBOR + 3.9%

 

 

3.98%

 

 

 

16.8

 

 

 

 

 

 

 

 

 

 

 

 

 

$

61.3

 

 

No principal payments have been made since the acquisition of Syndicate 1200. The floating rate loan stock denominated in Euros fluctuates due to foreign currency translation. The outstanding balance on these loans was $38.1 million and $44.8 million as of December 31, 2015 and 2014, respectively. The foreign currency translation adjustment is recorded in our Consolidated Statements of Income.

Borrowing Under Revolving Credit Facility

On March 7, 2014, each of Argo Group, Argo Group US, Inc., Argo International Holdings Limited and Argo Underwriting Agency Limited (the “Borrowers”) entered into a $175.0 million Credit Agreement (“Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent. The Credit Agreement replaced and terminated the previous $150.0 million Credit Agreement. The Credit Agreement provides for a $175.0 million revolving credit facility with a maturity date of March 7, 2018 unless extended in accordance with the terms of the Credit Agreement. Borrowings under the Credit Agreement may be used for general corporate purposes, including working capital and permitted acquisitions, and each of the Borrowers has agreed to be jointly and severally liable for the obligations of the other Borrowers under the Credit Agreement.

The Credit Agreement contains customary events of default. If an event of default occurs and is continuing, the Borrowers might be required immediately to repay all amounts outstanding under the Credit Agreement. Lenders holding at least a majority of the loans and commitments under the Credit Agreement may elect to accelerate the maturity of the loans and/or terminate the commitments under the Credit Agreement upon the occurrence and during the continuation of an event of default.

Included in the Credit Agreement is a provision that allows up to $17.5 million of the revolving credit facility to be used for LOCs, subject to availability. On March 7, 2014, the $0.2 million LOC outstanding under the previous $150.0 million Credit Agreement was transferred to the Credit Agreement. At December 31, 2015 and 2014, there were no borrowings outstanding and $0.2 million in LOCs against the Credit Facility.

Other Debt

As part of the ARIS Title Insurance Corporation (“ARIS”) acquisition, at December 31, 2015 and 2014, we had a note payable for $0.6 million and $0.7 million, respectively. The note had a variable interest rate of 2.00% above 30-day LIBOR, with the variable interest rate being reset quarterly and subject to certain interest rate ceilings. Interest payments are payable quarterly. The note payable matures on April 1, 2019.

 
v3.3.1.900
Disclosures about Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2015
Fair Value Disclosures [Abstract]  
Disclosures about Fair Value of Financial Instruments

8.

Disclosures about Fair Value of Financial Instruments

Cash. The carrying amount approximates fair value.

Investment securities and short-term investments. See Note 2, “Investments,” for additional information.

Premiums receivable and reinsurance recoverables on paid losses. The carrying value of current receivables approximates fair value. At December 31, 2015 and 2014, the carrying values of premiums receivable over 90 days were $10.0 million and $12.4 million, respectively. Included in “Reinsurance recoverables” in our Consolidated Balance Sheets at December 31, 2015 and 2014, are amounts that are due from trade capital providers associated with the operations of Syndicate 1200. Upon settlement, the receivable is offset against the liability also reflected in our accompanying Consolidated Balance Sheets. At December 31, 2015 and 2014, the payable was in excess of the receivable. Of our reinsurance recoverables on paid losses, excluding amounts attributable to Syndicate 1200’s trade capital providers, at December 31, 2015 and 2014, the carrying values over 90 days were $7.1 million and $9.9 million, respectively. Our methodology for establishing our allowances for doubtful accounts includes specifically identifying all potential uncollectible balances regardless of aging. At December 31, 2015 and 2014, the allowance for doubtful accounts for premiums receivable was $3.5 million and $5.2 million, respectively, and the allowance for doubtful accounts for reinsurance recoverables on paid losses was $2.2 million and $1.8 million, respectively. Premiums receivable over 90 days were secured by collateral in the amount of $0.2 million and $0.3 million at December 31, 2015 and 2014, respectively. Reinsurance recoverables on paid losses over 90 days were secured by collateral in the amount of $0.7 million and $0.4 million at December 31, 2015 and 2014, respectively.

Debt. At December 31, 2015 and 2014, the fair value of our Junior subordinated debentures, Senior unsecured fixed rate notes and Other indebtedness was estimated using appropriate market indices or quoted prices from external sources based on current market conditions.

A summary of our financial instruments whose carrying value did not equal fair value is shown below:

 

 

 

December 31, 2015

 

 

December 31, 2014

 

(in millions)

 

Carrying

Amount

 

 

Fair

Value

 

 

Carrying

Amount

 

 

Fair

Value

 

Junior subordinated debentures

 

$

172.7

 

 

$

166.5

 

 

$

172.7

 

 

$

155.5

 

Senior unsecured fixed rate notes

 

 

143.8

 

 

 

146.3

 

 

 

143.8

 

 

 

132.3

 

Other indebtedness:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Floating rate loan stock

 

 

54.6

 

 

 

52.7

 

 

 

61.3

 

 

 

55.2

 

Note payable

 

 

0.6

 

 

 

0.6

 

 

 

0.7

 

 

 

0.6

 

 

 

$

371.7

 

 

$

366.1

 

 

$

378.5

 

 

$

343.6

 

 
v3.3.1.900
Shareholders' Equity
 12 Months Ended
Dec. 31, 2015
Equity [Abstract]  
Shareholders' Equity

9.

Shareholders’ Equity

On February 16, 2016, our Board of Directors declared a quarterly cash dividend in the amount of $0.22 on each share of common stock outstanding. The cash dividend will be paid on March 15, 2016 to shareholders of record at the close of business on March 1, 2016

On February 17, 2015, our Board of Directors declared a 10% stock dividend, payable on March 16, 2015, to shareholders of record at the close of business on March 2, 2015. As a result of the stock dividend, 2,554,506 additional shares were issued. Cash was paid in lieu of fractional shares of our common shares. All references to share and per share amounts in this document and related disclosures have been adjusted to reflect the stock dividend for all periods presented.

On May 7, 2013, our Board of Directors declared a 10% stock dividend, payable on June 17, 2013, to shareholders of record at the close of business on June 3, 2013. As a result of the stock dividend, 2,447,839 additional shares were issued. Cash was paid in lieu of fractional shares of our common shares. All references to share and per share amounts in this document and related disclosures have been adjusted to reflect the stock dividend for all periods presented.

During 2015, our Board of Directors declared quarterly cash dividends totaling $0.80 on each share of common stock outstanding to our shareholders of record. For the year ended December 31, 2015, we paid cash dividends totaling $22.7 million to our shareholders.

On February 18, 2014, May 5, 2014, August 5, 2014 and November 4, 2014, our Board of Directors declared quarterly cash dividends totaling $0.69 on each share of common stock outstanding or $0.63 on each share outstanding adjusted for the 2015 stock dividend to our shareholders of record. For the year ended December 31, 2014, we paid cash dividends totaling $18.2 million to our shareholders.

On February 15, 2013, our Board of Directors declared a quarterly cash dividend in the amount of $0.15 on each share of common stock outstanding or $0.13 on each share outstanding adjusted for the 2013 and 2015 stock dividends to our shareholders of record. On May 7, 2013, August 6, 2013 and November 4, 2013, our Board of Directors declared quarterly cash dividends totaling $0.45 on each share of common stock outstanding or $0.41 on each share outstanding adjusted for the 2015 stock dividend to our shareholders of record. For the year ended December 31, 2013, we paid cash dividends totaling $15.8 million to our shareholders.

We are authorized to issue 30 million shares of $1.00 par value preferred shares. As of December 31, 2015 and 2014, no preferred shares were issued and outstanding.

On November 5, 2013, our Board of Directors authorized the repurchase of up to $150.0 million of our common shares (“2013 Repurchase Authorization”). The 2013 Repurchase Authorization supersedes all the previous Repurchase Authorizations. As of December 31, 2015, availability under the 2013 Repurchase Authorization for future repurchases of our common shares was $63.1 million.

For the year ended December 31, 2015 and 2014, we repurchased 575,155 common shares and 1,048,144 common shares, respectively for $29.7 million and $50.8 million, respectively.

A summary of common shares repurchased in 2015 is shown below:

 

Repurchase Type

 

Date

Trading Plan

Initiated

 

2015

Purchase

Period

 

Number of

Shares

Repurchased

 

 

Average Price

of Shares

Repurchased

 

 

Total Cost

(in millions)

 

 

Repurchase

Authorization

Year

10b5-1 Trading Plan

 

12/15/2014

 

01/05/2015-02/12/2015

 

 

117,482

 

 

$

53.50

 

 

$

6.3

 

 

2013

10b5-1 Trading Plan

 

03/16/2015

 

03/18/2015-05/06/2015

 

 

150,050

 

 

$

49.56

 

 

 

7.4

 

 

2013

10b5-1 Trading Plan

 

12/16/2015

 

12/18/2015-12/23/2015

 

 

100

 

 

$

59.03

 

 

 

—

 

 

2013

Open Market

 

N/A

 

01/01/2015-09/30/2015

 

 

307,523

 

 

$

51.83

 

 

 

16.0

 

 

2013

Total

 

 

 

 

 

 

575,155

 

 

$

51.58

 

 

$

29.7

 

 

 

 

At December 31, 2015, we had the following authorized, unissued common shares reserved for future issuance:

 

Reserve Name

 

Shares Reserved

 

2014 Long-Term Incentive Plan

 

 

3,930,147

 

2007 Employee Share Purchase Plan

 

 

1,929,537

 

Historical stock compensation plans

 

 

860

 

Total

 

 

5,860,544

 

 

Shares reserved under the historical plans represent all grants issued and outstanding under terminated plans as of December 31, 2015. (See Note 12, “Share-based Compensation” for further discussion.)

 
v3.3.1.900
Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 31, 2015
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)

10.

Accumulated Other Comprehensive Income (Loss)

In February 2013, the FASB issued ASU 2013-02 that amends ASC 220, “Comprehensive Income.” See Note 1, “Business and Significant Accounting Policies” for additional information regarding the provisions of this update. Effective January 1, 2013, we adopted the update prospectively.

A summary of changes in accumulated other comprehensive income (loss), net of taxes (where applicable) by component is presented below:

 

(in millions)

 

Foreign Currency

Translation

Adjustments

 

 

Unrealized

Holding Gains

on Securities

 

 

Defined Benefit

Pension Plans

 

 

Total

 

Balance, January 1, 2014

 

$

(11.5

)

 

$

163.9

 

 

$

(4.6

)

 

$

147.8

 

Other comprehensive (loss) income before

   reclassifications

 

 

(4.1

)

 

 

(12.5

)

 

 

(2.4

)

 

 

(19.0

)

Amounts reclassified from accumulated other

   comprehensive (loss) income

 

 

—

 

 

 

(20.7

)

 

 

—

 

 

 

(20.7

)

Net current-period other comprehensive (loss) income

 

 

(4.1

)

 

 

(33.2

)

 

 

(2.4

)

 

 

(39.7

)

Balance, December 31, 2014

 

 

(15.6

)

 

 

130.7

 

 

 

(7.0

)

 

 

108.1

 

Other comprehensive (loss) income before

   reclassifications

 

 

(6.0

)

 

 

(89.8

)

 

 

0.1

 

 

 

(95.7

)

Amounts reclassified from accumulated other

   comprehensive (loss) income

 

 

—

 

 

 

(0.9

)

 

 

—

 

 

 

(0.9

)

Net current-period other comprehensive (loss) income

 

 

(6.0

)

 

 

(90.7

)

 

 

0.1

 

 

 

(96.6

)

Balance, December 31, 2015

 

$

(21.6

)

 

$

40.0

 

 

$

(6.9

)

 

$

11.5

 

 

The amounts reclassified from accumulated other comprehensive income (loss) shown in the above table have been included in the following captions in our Consolidated Statements of Income:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Unrealized gains and losses on securities:

 

 

 

 

 

 

 

 

 

 

 

 

Net realized investment gains

 

$

(7.2

)

 

$

(30.6

)

 

$

(59.8

)

Provision for income taxes

 

 

6.3

 

 

 

9.9

 

 

 

19.4

 

Net of taxes

 

$

(0.9

)

 

$

(20.7

)

 

$

(40.4

)

 
v3.3.1.900
Net Income Per Common Share
 12 Months Ended
Dec. 31, 2015
Earnings Per Share [Abstract]  
Net Income Per Common Share

11.

Net Income Per Common Share

The following table presents the calculation of net income per common share on a basic and diluted basis:

 

 

 

For the Years Ended December 31,

 

(in millions, except number of shares and per share amounts)

 

2015

 

 

2014

 

 

2013

 

Net income

 

$

163.2

 

 

$

183.2

 

 

$

143.2

 

Weighted average common shares outstanding - basic

 

 

27,972,962

 

 

 

28,690,306

 

 

 

29,536,472

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

Equity compensation awards

 

 

560,337

 

 

 

522,542

 

 

 

1,120,011

 

Weighted average common shares outstanding - diluted

 

 

28,533,299

 

 

 

29,212,848

 

 

 

30,656,483

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

5.84

 

 

$

6.39

 

 

$

4.85

 

Diluted

 

$

5.72

 

 

$

6.27

 

 

$

4.67

 

 

Excluded from the weighted average common shares outstanding calculation at December 31, 2015, 2014 and 2013 are 9,181,644 shares, 8,606,489 shares and 7,558,345 shares, respectively, which are held as treasury shares. The shares are excluded as of their repurchase date. In 2015, there were no anti-dilutive shares of common stock to be excluded from the computation of diluted net income per common share. In 2014, equity compensation awards to purchase 1,700 shares of common stock were excluded from the computation of diluted net income per common share as these instruments were anti-dilutive. These instruments expired or will expire at varying times from 2015 through 2021. In 2013, equity compensation awards to purchase 3,300 shares of common stock were excluded from the computation of diluted net income per common share as these instruments were anti-dilutive. These instruments expired or will expire at varying times from 2014 through 2020.

v3.3.1.900
Share-based Compensation
 12 Months Ended
Dec. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-based Compensation

12.

Share-based Compensation

The fair value method of accounting is used for equity-based compensation plans. Under the fair value method, compensation cost is measured based on the fair value of the award at the measurement date and recognized over the requisite service period. We use the Black-Scholes model to estimate the fair values on the measurement date for share options and share appreciation rights (“SARs”). The Black-Scholes model uses several assumptions to value a share award. The volatility assumption is based on the historical change in our stock price over the previous five years preceding the measurement date. The risk-free rate of return assumption is based on the five-year U.S. Treasury constant maturity rate on the measurement date. The expected award life is based upon the average holding period over the history of the incentive plan. The expected dividend yield is based on our history and expected dividend payouts.

The following table summarizes the assumptions we used:

 

 

 

For the Years Ended December 31,

 

 

2015

 

2014

 

2013

Risk-free rate of return

 

1.44% to 1.81%

 

1.53% to 1.77%

 

0.80% to 1.71%

Expected dividend yields

 

1.46% to 1.60%

 

1.49% to 1.55%

 

1.49% to 1.67%

Expected award life (years)

 

4.62 to 4.71

 

4.67 to 4.85

 

4.91 to 5.07

Expected volatility

 

20.04% to 22.09%

 

22.84% to 25.46%

 

26.30% to 32.07%

 

We estimate forfeitures based on historical forfeitures patterns, thereby recognizing expense only for those awards that are expected to vest. The estimate of forfeitures is adjusted as actual forfeitures differ from our estimate, resulting in recognition of compensation expense only for those awards that actually vest.

The compensation expense recognized under all our share-based payment plans was $29.1 million ($23.7 million, net of tax), $19.6 million ($16.2 million, net of tax) and $23.3 million ($18.6 million, net of tax) for the years ended December 31, 2015, 2014 and 2013, respectively. The compensation expense is included in “Underwriting, acquisition and insurance expenses” in our Consolidated Statements of Income.

We present all tax benefits resulting from the exercise of stock options and vesting of non-vested shares as cash flows from financing activities. Excess tax benefits are realized tax benefits from tax deductions for exercised options and vested shares in excess of the deferred tax asset attributable to stock compensation costs for such options. Such tax benefits and cash flows were immaterial for all reporting periods.

Argo Group’s Long-Term Incentive Plans

In November 2007, our shareholders approved the 2007 Long-Term Incentive Plan (the “2007 Plan”), which provided for an aggregate of 4.5 million shares of our common stock that may be issued to executives, non-employee directors, and other key employees. As of May 2014, 1,457,800 shares remained available for grant under the 2007 Plan. In May 2014, our shareholders approved the 2014 Long-Term Incentive Plan (the “2014 Plan”), which provides for an additional 2.8 million shares of our common stock to be available for issuance to executives, non-employee directors and other key employees. The share awards may be in the form of share options, SARs, restricted shares, restricted share awards, restricted share units awards, performance awards, other share-based awards and other cash-based awards. Shares issued under this plan may be shares that are authorized and unissued or shares that we reacquired, including shares purchased on the open market. Share options and SARs will count as one share for the purposes of the limits under the incentive plans; restricted shares, restricted share units, performance units, performance shares or other share-based incentive awards which settle in common shares will count as 2.75 shares for purpose of the limits under the 2014 Plan.

Share options may be in the form of incentive share options, non-qualified share options and restorative options. Share options are required to have an exercise price that is not less than the market value on the date of grant. We are prohibited from repricing the options. The term of the share options cannot exceed seven years from the grant date.

 

During 2015, all options granted under this plan were either exercised or expired. Cash received for the exercise of options under this plan was $1.4 million for the year ended December 31, 2015.

There were no options granted under this plan during the years ended December 31, 2015, 2014, and 2013.

A summary of restricted share activity as of December 31, 2015 and changes during the year then ended is as follows:

 

 

 

Shares

 

 

Weighted-Average

Grant Date

Fair Value

 

Outstanding at January 1, 2015

 

 

313,716

 

 

$

35.19

 

Granted

 

 

299,902

 

 

$

41.94

 

Vested and issued

 

 

(123,028

)

 

$

30.04

 

Expired or forfeited

 

 

(15,283

)

 

$

45.20

 

Outstanding at December 31, 2015

 

 

475,307

 

 

$

40.46

 

 

As of December 31, 2015, there was $13.3 million of total unrecognized compensation cost related to restricted share compensation arrangements granted by Argo Group. The weighted-average period over which this unrecognized expense is expected to be recognized is 2.3 years. The total fair value of shares vested during the year ended December 31, 2015 was $4.1 million.

A summary of stock-settled SARs activity as of December 31, 2015 and changes during the year then ended is as follows:

 

 

 

Shares

 

 

Weighted-Average

Exercise Price

 

Outstanding at January 1, 2015

 

 

1,313,726

 

 

$

28.43

 

Granted

 

 

243,305

 

 

$

46.53

 

Exercised

 

 

(228,244

)

 

$

24.21

 

Expired or forfeited

 

 

(10,686

)

 

$

28.17

 

Outstanding at December 31, 2015

 

 

1,318,101

 

 

$

32.50

 

Vested or expected to vest as of end of year

 

 

1,238,645

 

 

$

32.01

 

Exercisable at end of year

 

 

803,807

 

 

$

27.58

 

 

The stock-settled SARs vest over a one to four year period. Upon exercise of the stock-settled SARs, the employee is entitled to receive shares of our common stock equal to the appreciation of the stock as compared to the exercise price. For the year ended December 31, 2015, 228,244 stock-settled SARs were exercised resulting in 129,670 shares being issued. As of December 31, 2015, there was $2.9 million of total unrecognized compensation cost related to stock-settled SARs outstanding. The weighted-average period over which this unrecognized expense is expected to be recognized is 2.7 years. Aggregate intrinsic value of the stock-settled SARs at December 31, 2015 was $36.0 million.

A summary of cash-settled SARs activity as of December 31, 2015 and changes during the year then ended is as follows:

 

 

 

Shares

 

 

Weighted-Average

Exercise Price

 

Outstanding at January 1, 2015

 

 

2,001,451

 

 

$

32.76

 

Granted

 

 

913,157

 

 

$

47.48

 

Exercised

 

 

(492,511

)

 

$

29.47

 

Expired or forfeited

 

 

(287,976

)

 

$

37.11

 

Outstanding at December 31, 2015

 

 

2,134,121

 

 

$

39.22

 

Vested or expected to vest as of end of year

 

 

1,876,079

 

 

$

37.79

 

Exercisable at end of year

 

 

463,176

 

 

$

30.38

 

 

The cash-settled SARs vest over a one to four year period. Upon exercise of the cash-settled SARs, the employee is entitled to receive cash payment for the appreciation in the value of our common stock over the exercise price. We account for the cash-settled SARs as liability awards, which require the awards to be revalued at each reporting period. For the year ended December 31, 2015, 492,511 cash-settled SARs were exercised resulting in $12.8 million in cash payments. As of December 31, 2015, there was $15.8 million of total unrecognized compensation cost related to cash-settled SARs outstanding. The weighted-average period over which this unrecognized expense is expected to be recognized is 2.6 years. Aggregate intrinsic value of the cash-settled SARs at December 31, 2015 was $44.0 million. The liability for cash-settled SARs was $31.0 million and $24.4 million at December 31, 2015 and 2014, respectively.

Included in the total shares outstanding at December 31, 2015 are 271,311 restricted shares, 803,506 cash-settled SARs and 181,319 stock-settled SARs whose vesting is contingent on the employee meeting defined performance conditions. Employees have a specified time period in which to meet the performance condition (typically one year) and forfeit the grant (on a pro rata basis) if the performance conditions are not met in the specified time frame. We evaluate the likelihood of the employee completing the performance condition and include this estimate in the determination of the forfeiture factor for the grants.

We have granted to certain key employees restricted share units, which provide the employee with the economic equivalent of stock ownership. Each restricted share unit is valued at the closing price of our common stock on the national exchange on which it is listed as of the date credited, and fluctuates daily thereafter. The restricted share units outstanding under this plan vest over a 24 to 48 month period, subject to continued employment. Upon vesting, the employee receives a cash payment equivalent to the number of restricted share units vested valued at the closing market price of our common shares. Total expense recognized for the restricted share units totaled $0.2 million, $0.5 million, and $0.9 million for the years ended December 31, 2015, 2014, and 2013, respectively. Cash payments paid for vested awards under this plan totaled $0.3 million and $0.4 million for the years ended December 31, 2015 and 2014, respectively.

Employees Share Purchase Plans

We have established an employee stock purchase plan for eligible employees (Argo Group’s 2007 Employee Share Purchase Plan). Under this plan, newly issued shares of our common stock may be purchased over an offering period of three months at 85% of the lower of the market value on the first day of the offering period or on the designated purchase date at the end of the offering period. We have also established a Save As You Earn Plan for our United Kingdom employees (Argo Group’s Save As You Earn Plan). Under this plan, newly issued shares of our common stock may be purchased over an offering period of three or five years at 85% of the market value of the common shares on the first day of the offering period. Expense recognized under these plans for the years ended December 31, 2015, 2014, and 2013 was $0.4 million, $0.3 million and $0.3 million, respectively.

Argo Group International Holdings, Ltd. Deferred Compensation Plan for Non-Employee Directors

Until December 16, 2013, the non-employee members of our Board of Directors were entitled to participate in the Argo Group International Holdings, Ltd. Deferred Compensation Plan for Non-Employee Directors (“Directors Plan”), a non-funded and non-qualified deferred compensation plan. Under the Directors Plan, non-employee directors could elect each year to defer payment of 0%, 50% or 100% of their cash compensation payable during the next calendar year. While no further deferrals were permitted under the Directors Plan from and after December 16, 2013, and certain amounts thereunder were paid out prior to the end of 2013, additional deferred amounts remain subject to the terms of the Directors Plan and will be paid out in accordance with the terms of the Directors Plan. Deferred amounts are credited with interest earned at a rate two percent above the prime commercial lending rate, to be reset each May 1. In addition, the Directors Plan calls for us to grant a match equal to 75% of the cash compensation amounts deferred in the form of “Stock Units,” which provide directors with the economic equivalent of stock ownership and were credited as a bookkeeping entry to each director’s “Stock Unit Account.” Each Stock Unit is valued at the closing price of our common stock on the national exchange on which it is listed as of the date credited for all purposes under the Directors Plan and fluctuates daily thereafter on that same basis. The Directors Plan provided for a Stock Unit Account to be established for each non-employee director upon their election to the Board and credits their account with an initial bookkeeping entry for 1,650 Stock Units. In conjunction with the termination of the Directors Plan, all cash balances and related interest for the years 2010 through 2013 were settled resulting in $1.9 million in cash payments for the year ended December 31, 2013. Remaining distributions from the Directors Plan will occur six months after the non-employee director ceases to be a member of the Board, the date on which a change in control (as defined in the Directors Plan) occurs or December 1, 2017, whichever comes first, and will be made in cash. The non-employee directors are responsible for all tax requirements on the deferred compensation and any related earnings. Under the Directors Plan, we recorded compensation expense of $0.9 million, $0.7 million and $2.0 million for the years ended December 31, 2015, 2014, and 2013, respectively. The liability for remaining distributions under the Directors Plan was $4.5 million and $4.2 million at December 31, 2015 and 2014, respectively.

 
v3.3.1.900
Underwriting, Acquisition and Insurance Expenses
 12 Months Ended
Dec. 31, 2015
Underwriting Acquisition And Insurance Expenses [Abstract]  
Underwriting, Acquisition and Insurance Expenses

13.

Underwriting, Acquisition and Insurance Expenses

Underwriting, acquisition and insurance expenses were as follows:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Commissions

 

$

232.2

 

 

$

231.1

 

 

$

229.6

 

General expenses

 

 

298.5

 

 

 

288.0

 

 

 

272.8

 

Premium taxes, boards and bureaus

 

 

9.8

 

 

 

25.5

 

 

 

24.2

 

 

 

 

540.5

 

 

 

544.6

 

 

 

526.6

 

Net deferral of policy acquisition costs

 

 

(0.9

)

 

 

(5.4

)

 

 

(15.8

)

Total underwriting, acquisition and insurance expenses

 

$

539.6

 

 

$

539.2

 

 

$

510.8

 

 

Included in general expenses for the years ended December 31, 2015, 2014 and 2013 is $29.1 million, $19.6 million and $23.3 million, respectively, of expense for our equity-related compensation. The decrease in premium taxes, boards and bureaus for the year ended December 31, 2015 as compared to the year ended December 31, 2014 was primarily due to a decline in the accrual for premium taxes and other assessments due to a change in accounting estimate.
v3.3.1.900
Income Taxes
 12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Income Taxes

14.

Income Taxes

We are incorporated under the laws of Bermuda and, under current Bermuda law, are not obligated to pay any taxes in Bermuda based upon income or capital gains. We have received an undertaking from the Supervisor of Insurance in Bermuda pursuant to the provisions of the Exempted Undertakings Tax Protection Act, 2011, which exempts us from any Bermuda taxes computed on profits, income or any capital asset, gain or appreciation or any tax in the nature of estate duty or inheritance tax, at least until the year 2035.

We do not consider ourselves to be engaged in a trade or business in the United States or the United Kingdom and, accordingly, do not expect to be subject to direct United States or United Kingdom income taxation.

We have subsidiaries based in the United Kingdom that are subject to the tax laws of that country. Under current law, these subsidiaries are taxed at the applicable corporate tax rates. Eight of the United Kingdom subsidiaries are deemed to be engaged in business in the United States, and therefore, are subject to United States corporate tax in respect of a proportion of their United States underwriting business only. Relief is available against the United Kingdom tax liabilities in respect of overseas taxes paid that arise from the underwriting business. Our United Kingdom subsidiaries file separate United Kingdom income tax returns.

We have subsidiaries based in the United States that are subject to United States tax laws. Under current law, these subsidiaries are taxed at the applicable corporate tax rates. Our United States subsidiaries file a consolidated United States federal income tax return.

We also have operations in Belgium, Switzerland, Brazil, France, Malta, Spain and Ireland, which also are subject to income taxes imposed by the jurisdiction in which they operate. We have operations in the United Arab Emirates, which are not subject to income tax under the laws of that country.

Our income tax provision includes the following components:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Current tax provision

 

$

6.0

 

 

$

5.2

 

 

$

32.7

 

Deferred tax provision related to:

 

 

 

 

 

 

 

 

 

 

 

 

Future tax deductions

 

 

10.9

 

 

 

58.4

 

 

 

0.1

 

Valuation allowance change

 

 

(2.6

)

 

 

(30.8

)

 

 

3.7

 

Income tax provision

 

$

14.3

 

 

$

32.8

 

 

$

36.5

 

 

Our expected income tax provision computed on pre-tax income (loss) at the weighted average tax rate has been calculated as the sum of the pre-tax income (loss) in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. For the years ended December 31, 2015, 2014 and 2013, pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows:

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

 

 

Pre-Tax

Income (Loss)

 

 

Effective

Tax

Rate

 

 

Pre-Tax

Income (Loss)

 

 

Effective

Tax

Rate

 

 

Pre-Tax

Income (Loss)

 

 

Effective

Tax

Rate

 

Bermuda

 

$

94.3

 

 

 

0.0

%

 

$

102.8

 

 

 

0.0

%

 

$

50.5

 

 

 

0.0

%

United States

 

 

64.8

 

 

 

19.9

%

 

 

98.0

 

 

 

28.1

%

 

 

120.9

 

 

 

28.2

%

United Kingdom

 

 

21.3

 

 

 

(4.7

%)

 

 

21.5

 

 

 

24.8

%

 

 

18.5

 

 

 

12.0

%

Belgium

 

 

—

 

(1)

 

237.0

%

 

 

—

 

(1)

 

63.8

%

 

 

0.2

 

 

 

103.0

%

Brazil

 

 

(3.2

)

 

 

0.0

%

 

 

(2.2

)

 

 

0.0

%

 

 

(9.7

)

 

 

0.0

%

United Arab Emirates

 

 

0.2

 

 

 

0.0

%

 

 

(0.9

)

 

 

0.0

%

 

 

1.1

 

 

 

0.0

%

Ireland (2)

 

 

(0.1

)

 

 

5.0

%

 

 

(1.1

)

 

 

0.0

%

 

 

(0.1

)

 

 

0.0

%

Malta

 

 

0.1

 

 

 

0.0

%

 

 

(2.2

)

 

 

0.0

%

 

 

(1.7

)

 

 

0.0

%

Switzerland

 

 

0.1

 

 

 

20.5

%

 

 

0.1

 

 

 

17.6

%

 

 

—

 

(1)

 

5.6

%

Pre-tax income

 

$

177.5

 

 

 

 

 

 

$

216.0

 

 

 

 

 

 

$

179.7

 

 

 

 

 

 

(1)

Pre-tax income for the respective year was less than $0.1 million.

(2)

Effective tax rate of 5 percent on intercompany dividends of $50.0 million for the year ended December 31, 2015.  Dividends eliminated in consolidation.

A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Income tax provision at expected rate

 

$

25.8

 

 

$

37.2

 

 

$

43.1

 

Tax effect of:

 

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt interest

 

 

(4.2

)

 

 

(4.5

)

 

 

(5.6

)

Dividends received deduction

 

 

(2.3

)

 

 

(2.3

)

 

 

(2.3

)

Valuation allowance change

 

 

(2.6

)

 

 

(30.8

)

 

 

3.7

 

Other permanent adjustments, net

 

 

0.3

 

 

 

(0.7

)

 

 

0.3

 

Adjustment for prior year tax return

 

 

(0.6

)

 

 

(0.9

)

 

 

(1.6

)

United States state tax expense

 

 

(2.5

)

 

 

2.5

 

 

 

0.3

 

PXRE Reinsurance capital loss carryforward

 

 

—

 

 

 

29.8

 

 

 

—

 

Other foreign adjustments

 

 

(0.3

)

 

 

0.7

 

 

 

(0.1

)

Foreign tax credit utilization

 

 

(2.1

)

 

 

0.1

 

 

 

1.1

 

Deferred tax rate reduction

 

 

—

 

 

 

(0.4

)

 

 

(1.2

)

Foreign exchange adjustments

 

 

(0.1

)

 

 

1.7

 

 

 

(1.7

)

Foreign withholding taxes

 

 

2.9

 

 

 

0.4

 

 

 

0.5

 

Income tax provision

 

$

14.3

 

 

$

32.8

 

 

$

36.5

 

Income tax provision  - Foreign

 

$

(1.1

)

 

$

5.2

 

 

$

2.4

 

Income tax provision - United States, Federal

 

 

16.4

 

 

 

23.3

 

 

 

33.2

 

Income tax (benefit) provision  - United States, State

 

 

(3.9

)

 

 

3.9

 

 

 

0.4

 

Foreign withholding tax

 

 

2.9

 

 

 

0.4

 

 

 

0.5

 

Income tax provision

 

$

14.3

 

 

$

32.8

 

 

$

36.5

 

 

The consolidated provision for income taxes for the year ended December 31, 2015 was affected by a $2.1 million decrease to taxes related to foreign tax credit utilization in the United Kingdom, a $2.5 million decrease in tax related to the reversal of an estimated state tax accrual, and an increase of $2.5 million in withholding taxes paid on an intercompany dividend payment.

 

The consolidated provision for income taxes for the year ended December 31, 2014 was affected by a $1.3 million decrease for additional taxes reported on the prior year tax return, a $0.4 million reduction for change in the United Kingdom deferred tax rate and a $1.0 million increase for the foreign exchange adjustment on the translation from Sterling to the U.S. Dollar within the Syndicate 1200 segment. Additionally, a $29.8 million increase is recognized due to the expiration of the PXRE Reinsurance Company capital loss carryforward benefit, which was offset by the related Valuation Allowance.

The consolidated provision for income taxes for the year ended December 31, 2013 was affected by a $1.6 million decrease for additional taxes reported on the prior year tax return, a $1.2 million reduction for change in the United Kingdom deferred tax rate and a $1.7 million decrease for the foreign exchange adjustment on the translation from Sterling to the U.S. Dollar within the Syndicate 1200 segment.

Deferred taxes arise from temporary differences in the recognition of revenues and expenses for tax and financial reporting purposes. The net deferred tax liability as of December 31, 2015 and 2014 resulted from the tax-effected temporary differences shown in the following table. Due primarily to changes in unrealized gains on available-for-sale investment securities, the net deferred tax liability decreased by $29.4 million and increased $24.3 million for the years ended December 31, 2015 and 2014, respectively.

 

 

 

December 31,

 

(in millions)

 

2015

 

 

2014

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Losses and loss adjustment expense reserve discounting

 

$

23.4

 

 

$

25.1

 

Unearned premiums

 

 

26.6

 

 

 

24.8

 

Allowance for bad debt

 

 

1.6

 

 

 

2.0

 

Accrual for contingent commissions

 

 

0.3

 

 

 

0.3

 

Net operating loss carryforward

 

 

17.8

 

 

 

18.8

 

Impairment of investment values

 

 

9.6

 

 

 

8.2

 

United States amortization of intangible assets

 

 

4.9

 

 

 

4.3

 

Accrued bonus

 

 

7.0

 

 

 

6.7

 

Accrued vacation

 

 

1.6

 

 

 

1.7

 

Stock option expense

 

 

10.1

 

 

 

8.0

 

Brazil operating losses

 

 

5.9

 

 

 

7.4

 

Malta operating losses

 

 

1.8

 

 

 

2.1

 

Other

 

 

15.9

 

 

 

7.0

 

Deferred tax assets, gross

 

 

126.5

 

 

 

116.4

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Unrealized gains on equity securities

 

 

(40.1

)

 

 

(62.3

)

Unrealized gains on fixed maturities and other investment

   securities

 

 

(0.4

)

 

 

(15.3

)

Deferred acquisition costs

 

 

(20.4

)

 

 

(20.3

)

United States amortization of intangible assets

 

 

(3.6

)

 

 

(3.5

)

United Kingdom underwriting losses

 

 

(9.7

)

 

 

(9.0

)

United Kingdom amortization of intangible assets

 

 

(1.8

)

 

 

(2.3

)

Deferred gain on like-kind exchange

 

 

(13.3

)

 

 

—

 

Depreciable fixed asset

 

 

(18.0

)

 

 

(16.3

)

Unrealized Gain on Limited Partnership Interests

 

 

(11.0

)

 

 

(10.5

)

Other

 

 

(9.0

)

 

 

(4.5

)

Deferred tax liabilities, gross

 

 

(127.3

)

 

 

(144.0

)

Deferred tax assets, net before valuation allowance

 

$

(0.8

)

 

$

(27.6

)

Valuation allowance

 

 

(22.8

)

 

 

(25.4

)

Deferred tax liabilities, net

 

$

(23.6

)

 

$

(53.0

)

Net deferred tax liabilities - Foreign

 

$

(11.7

)

 

$

(11.8

)

Net deferred tax liabilities - United States

 

 

(11.9

)

 

 

(41.2

)

Deferred tax liabilities, net

 

$

(23.6

)

 

$

(53.0

)

 

Our net deferred tax assets (liabilities) are supported by taxes paid in previous periods, reversal of taxable temporary differences and recognition of future income. Management regularly evaluates the recoverability of the deferred tax assets and makes any necessary adjustments to them based upon any changes in management’s expectations of future taxable income. Realization of deferred tax assets is dependent upon our generation of future taxable income sufficient to recover tax benefits that cannot be recovered from taxes paid in the carryback period, generally two years for net operating losses and three years for capital losses, for our United States operations. At December 31, 2015, we had a total net deferred tax liability of $0.8 million prior to any valuation allowance.

 

Management has determined that a valuation allowance is required for a portion of the tax-effected net operating loss carryforward included as part of the United States consolidated group of $16.8 million generated from PXRE Corporation and for the tax effected net operating loss carryforward of $1.0 million from ARIS. The valuation allowances have been established pursuant to Internal Revenue Code Section 382 limits regarding the application of net operating loss carryforwards following an ownership change. The loss carryforwards available per year are $2.8 million, as required by Internal Revenue Code Section 382.

 

Furthermore, due to cumulative losses incurred since inception, management has concluded that a valuation allowance is required for the full amount of the tax-effected net operating losses generated by our Brazil and Malta entities.

 

Accordingly, a valuation allowance of $22.8 million is required as of December 31, 2015 of which $14.9 million relates to the PXRE Corporation and ARIS loss carryforwards, $6.1 million relates to Brazil operations, and $1.8 million relates to Malta operations. During the year ended December 31, 2015, the valuation allowance was reduced by $1.0 million pertaining to PXRE Corporation and ARIS loss carryforwards, decreased by $1.3 million pertaining to our Brazil operations and decreased by $0.3 million pertaining to our Malta operations.

 

Of the PXRE Corporation net operating loss carryforwards, $15.3 million will expire if not used by December 31, 2025 and $1.5 million will expire if not used by December 31, 2027. Of the ARIS loss carryforward, $0.2 million will expire if not used by December 31, 2027, $0.4 million will expire if not used by December 31, 2028, and $0.4 million will expire if not used by December 31, 2029.

For any uncertain tax positions not meeting the “more-likely-than-not” recognition threshold, accounting standards require recognition, measurement and disclosure in a company’s financial statements. We had no material unrecognized tax benefits as of December 31, 2015, 2014 and 2013. Our United States subsidiaries are no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2012. Our United Kingdom subsidiaries are no longer subject to United Kingdom income tax examinations by Her Majesty’s Revenue and Customs for years before 2012.

 
v3.3.1.900
Pension Benefits and Savings Plans
 12 Months Ended
Dec. 31, 2015
Compensation And Retirement Disclosure [Abstract]  
Pension Benefits and Savings Plans

15.

Pension Benefits and Savings Plans

Argo Group US sponsors a qualified defined benefit plan and non-qualified unfunded supplemental defined benefit plans, all of which were curtailed effective February 2004. The following tables set forth the change in plan assets and the change in projected benefit obligation, as of December 31 with respect to these plans. The assets and liabilities of the plans were measured as of December 31 of the respective years presented.

 

(in millions)

 

2015

 

 

2014

 

Change in plan assets

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

19.2

 

 

$

20.2

 

Actual return on plan assets

 

 

(0.1

)

 

 

1.0

 

Employer contributions

 

 

0.2

 

 

 

0.2

 

Settlements and benefits paid

 

 

(1.8

)

 

 

(2.2

)

Fair value of plan assets at end of year

 

$

17.5

 

 

$

19.2

 

 

(in millions)

 

2015

 

 

2014

 

Change in projected benefit obligation

 

 

 

 

 

 

 

 

Projected benefit obligation at beginning of year

 

$

25.8

 

 

$

22.6

 

Interest cost

 

 

0.8

 

 

 

1.0

 

Actuarial loss (gain)

 

 

(1.6

)

 

 

4.3

 

Settlements and benefits paid

 

 

(1.9

)

 

 

(2.1

)

Projected benefit obligation at end of year

 

$

23.1

 

 

$

25.8

 

 

As of December 31, 2015 and 2014, the qualified pension plan was underfunded by $3.4 million and $4.4 million, respectively. The non-qualified pension plans were unfunded by $2.3 million $2.2 million at December 31, 2015 and 2014, respectively. Underfunded and unfunded amounts are included in “Other liabilities” in our Consolidated Balance Sheets.

Assumptions used to determine benefit obligations at December 31 were as follows:

 

 

 

2015

 

 

2014

 

Weighted average discount rate

 

 

3.48%

 

 

 

3.37%

 

Expected rate of increase in future compensation levels

 

n/a

 

 

n/a

 

 

Assumptions used to determine net periodic benefit cost follows:

 

 

 

For the Years Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Weighted average discount rate

 

 

3.55%

 

 

 

4.39%

 

 

 

3.63%

 

Expected return on plan assets

 

 

6.00%

 

 

 

6.00%

 

 

 

6.00%

 

Expected rate of increase in future compensation levels

 

n/a

 

 

n/a

 

 

n/a

 

 

In 2015, 2014, and 2013, the expected return on plan assets was ascertained using multiple factors that include market conditions, duration of the fixed maturity portion of the portfolio and long-term return forecasts provided by several asset management companies.

Net periodic benefit costs were $0.1 million, $0.5 million and $0.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. We estimate that $0.4 million of unrecognized actuarial loss will be amortized from accumulated other comprehensive gain into net periodic benefit cost during 2016. Over the next five years, we expect our annual payments under the pensions plan not to exceed $2.5 million per year.

The projected benefit obligation for the non-qualified unfunded supplemental defined benefit plans, with accumulated benefit obligations in excess of plan assets, was $2.3 and $2.2 million at December 31, 2015 and 2014, respectively. The fair value of plan assets for these plans was zero for these same periods. The accumulated benefit obligation for all defined benefit plans is equal to the projected benefit obligation for each of the years presented.

Our investment policy for the qualified plan requires the investments be prudently selected and properly diversified so as to minimize the risk of large losses in accordance with applicable laws including the Employee Retirement Income Security Act of 1974. The overall investment strategy is to achieve a balance of long-term growth of capital and current income, taking into account the need for liquidity to pay benefits as they come due. Periodic shifts in the asset allocation may be made based on the assessment of current and prospective market conditions.

The investment policy for the qualified plan contains asset allocation guidelines with target allocations that remain effective until such time as the investment policy is revised. At December 31, 2015, the target allocations were 65% fixed maturity investments, short-term investments, and cash; and 35% equity investments. The target asset allocation percentages were selected based on risk diversification needs, expected distribution patterns and asset manager recommendations. The actual asset allocation as of December 31, 2015 was 62% fixed maturity investments, short-term investments and cash; and 38% equity investments, of which 21.3% and 16.7% were allocated between U.S. and international equities, respectively. These allocations were in compliance with the investment policy that allows the investment manager based on its judgment and market conditions to deviate from the target allocations.

Following is a description of the valuation techniques used to measure the plan’s assets at fair value.

Mutual funds: Fair value is determined using observable, market-based inputs on the valuation date (Level 1). For the years ended December 31, 2015 and 2014, assets with a fair value of $17.4 million and $18.8 million, respectively, were valued using Level 1 fair value measurements.

Short-term investment fund: Fair value is determined based on the net asset values provided by the plan trustee (Level 2). For the years ended December 31, 2015 and 2014, assets with a fair value of $0.1 million and $0.4 million, respectively, were valued using Level 2 fair value measurements.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while it is believed the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Based on the current funding status of the pension plan, effects of the curtailment and expected changes in pension plan asset values and pension obligations, we do not believe any significant funding of the pension plan will be required during the year ending December 31, 2016.

Substantially all of our employees are either eligible or mandated by applicable laws to participate in employee savings plans. Under these plans, a percentage of the employee’s pay may be or is mandated based on applicable laws to be contributed to various savings alternatives. The plans also call for our contributions under several formulae. Charges to income related to our contributions were $6.3 million, $7.1 million and $6.8 million in 2015, 2014 and 2013, respectively.

 
v3.3.1.900
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2015
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

16.

Commitments and Contingencies

Argo Group’s subsidiaries are parties to legal actions incidental to their business. Based on the opinion of counsel, management believes that the resolution of these matters will not materially affect our financial condition or results of operations.

We have contractual commitments to invest up to $90.2 million related to our limited partnership investments at December 31, 2015. These commitments will be funded as required by the partnership agreements which can be called to be fulfilled at any time, not to exceed thirteen years.
v3.3.1.900
Leases
 12 Months Ended
Dec. 31, 2015
Leases [Abstract]  
Leases

17.

Leases

We lease office space and equipment under lease agreements that expire at various intervals and are subject to renewal options at market rates prevailing at the time of renewal. At December 31, 2015, the future minimum payments under non-cancelable operating leases are as follows:

 

(in millions)

 

Amount Due

 

2016

 

$

10.3

 

2017

 

 

9.2

 

2018

 

 

7.1

 

2019

 

 

5.9

 

2020

 

 

3.3

 

Thereafter

 

 

4.4

 

Total

 

$

40.2

 

 

We incurred lease expense of $14.2 million, $14.7 million and $14.6 million for the years ended December 31, 2015, 2014 and 2013, respectively.

 
v3.3.1.900
Segment Information
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Information

18.

Segment Information

We are primarily engaged in underwriting property and casualty insurance and reinsurance. We have four ongoing reporting segments: Excess and Surplus Lines, Commercial Specialty, International Specialty and Syndicate 1200. Additionally, we have a Run-off Lines segment for certain products that we no longer underwrite.

We consider many factors, including the nature of each segment’s insurance and reinsurance products, production sources, distribution strategies and the regulatory environment, in determining how to aggregate reporting segments.  Transactions between segments are reported in the segment that initiated the transaction.

In evaluating the operating performance of our segments, we focus on core underwriting and investing results before the consideration of realized gains or losses from the sales of investments. Realized investment gains are reported as a component of the Corporate and Other segment, as decisions regarding the acquisition and disposal of securities reside with the corporate investment function and are not under the control of the individual business segments. Identifiable assets by segment are those assets used in the operation of each segment.

Revenue and income (loss) before income taxes for each segment were as follows:

 

 

For the Years Ended December 31,

 

(in millions)

2015

 

 

2014

 

 

2013

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

Earned premiums

 

 

 

 

 

 

 

 

 

 

 

Excess and Surplus Lines

$

525.3

 

 

$

485.2

 

 

$

460.2

 

Commercial Specialty

 

290.1

 

 

 

291.9

 

 

 

299.0

 

International Specialty

 

148.7

 

 

 

148.3

 

 

 

142.4

 

Syndicate 1200

 

407.4

 

 

 

411.1

 

 

 

401.7

 

Run-off Lines

 

0.4

 

 

 

1.6

 

 

 

0.5

 

Total earned premiums

 

1,371.9

 

 

 

1,338.1

 

 

 

1,303.8

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

Excess and Surplus Lines

 

35.2

 

 

 

36.7

 

 

 

42.2

 

Commercial Specialty

 

18.5

 

 

 

18.7

 

 

 

22.8

 

International Specialty

 

11.8

 

 

 

8.2

 

 

 

8.4

 

Syndicate 1200

 

9.2

 

 

 

10.2

 

 

 

11.0

 

Run-off Lines

 

8.3

 

 

 

9.7

 

 

 

10.8

 

Corporate and Other

 

2.6

 

 

 

3.1

 

 

 

4.8

 

Total net investment income

 

85.6

 

 

 

86.6

 

 

 

100.0

 

Net realized investment and other gains

 

27.1

 

 

 

94.0

 

 

 

71.3

 

Total revenue

$

1,484.6

 

 

$

1,518.7

 

 

$

1,475.1

 

 

 

For the Years Ended December 31,

 

(in millions)

2015

 

 

2014

 

 

2013

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

 

Excess and Surplus Lines

$

96.0

 

 

$

106.0

 

 

$

89.4

 

Commercial Specialty

 

29.9

 

 

 

8.9

 

 

 

21.4

 

International Specialty

 

31.3

 

 

 

21.1

 

 

 

11.3

 

Syndicate 1200

 

33.8

 

 

 

44.1

 

 

 

37.3

 

Run-off Lines

 

(7.2

)

 

 

(23.0

)

 

 

(10.6

)

Total segment income before taxes

 

183.8

 

 

 

157.1

 

 

 

148.8

 

Corporate and Other

 

(33.4

)

 

 

(35.1

)

 

 

(40.4

)

Net realized investment and other gains

 

27.1

 

 

 

94.0

 

 

 

71.3

 

Total income (loss) before income taxes

$

177.5

 

 

$

216.0

 

 

$

179.7

 

 

The table below presents earned premiums by geographic location. For this disclosure, we determine geographic location by the country of domicile of our subsidiaries that underwrite the business and not by the location of insureds or reinsureds from whom the business was generated.

 

 

For the Years Ended December 31,

 

(in millions)

2015

 

 

2014

 

 

2013

 

Bermuda

$

103.4

 

 

$

101.5

 

 

$

101.7

 

Brazil

 

43.1

 

 

 

44.3

 

 

 

38.7

 

Malta

 

1.9

 

 

 

2.1

 

 

 

1.8

 

United Kingdom

 

407.4

 

 

 

411.7

 

 

 

401.7

 

United States

 

816.1

 

 

 

778.5

 

 

 

759.9

 

Total earned premiums

$

1,371.9

 

 

$

1,338.1

 

 

$

1,303.8

 

 

The following table represents identifiable assets:

 

 

 

December 31,

 

(in millions)

 

2015

 

 

2014

 

Excess and Surplus Lines

 

$

2,439.9

 

 

$

2,344.0

 

Commercial Specialty

 

 

1,360.7

 

 

 

1,307.0

 

International Specialty

 

 

793.6

 

 

 

776.8

 

Syndicate 1200

 

 

1,371.2

 

 

 

1,258.5

 

Run-off Lines

 

 

527.2

 

 

 

550.5

 

Corporate and Other

 

 

137.5

 

 

 

119.5

 

Total

 

$

6,630.1

 

 

$

6,356.3

 

 

Included in total assets at December 31, 2015 and 2014 are $377.1 million and $315.4 million, respectively, in assets associated with trade capital providers.

The following table represents goodwill and intangible assets, net of accumulated amortization as of December 31:

 

 

 

Goodwill

 

 

Intangible Assets, Net of

Accumulated Amortization

 

(in millions)

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Excess and Surplus Lines

 

$

76.4

 

 

$

76.4

 

 

$

2.2

 

 

$

2.8

 

Commercial Specialty

 

 

47.1

 

 

 

47.1

 

 

 

4.1

 

 

 

5.5

 

Syndicate 1200

 

 

28.7

 

 

 

28.7

 

 

 

67.0

 

 

 

70.3

 

Total

 

$

152.2

 

 

$

152.2

 

 

$

73.3

 

 

$

78.6

 

 
v3.3.1.900
Run-off Lines
 12 Months Ended
Dec. 31, 2015
Discontinued Operations And Disposal Groups [Abstract]  
Run-off Lines

19.

Run-off Lines

We have discontinued active underwriting of certain lines of business, including those lines that were previously recorded in Argonaut Group’s Risk Management segment. All current activity within these lines is related to the management of claims and other administrative functions. Also included in Run-off Lines are other liability reserves, which include exposure to claims for asbestos and environmental liabilities written in past years. The other liability reserves are often characterized by long elapsed periods between the occurrence of a claim and ultimate payment to resolve the claim. We use a specialized staff dedicated to administer and settle these claims.

The following table presents our gross reserves for Run-off Lines as of December 31:

 

 

 

December 31,

 

(in millions)

 

2015

 

 

2014

 

Asbestos and Environmental:

 

 

 

 

 

 

 

 

Reinsurance assumed

 

$

34.6

 

 

$

40.1

 

Other

 

 

11.8

 

 

 

13.8

 

Total Asbestos and Environmental

 

 

46.4

 

 

 

53.9

 

Risk management

 

 

252.2

 

 

 

257.1

 

Run-off reinsurance lines

 

 

3.0

 

 

 

4.1

 

Other run-off lines

 

 

4.7

 

 

 

3.4

 

Total Run-off Lines

 

$

306.3

 

 

$

318.5

 

 

We have received asbestos and environmental liability claims arising from other liability coverage primarily written in the 1960s, 1970s and into the mid-1980s. Asbestos and environmental claims originate from policies directly underwritten by us and from reinsurance assumed during this period, including a portion assumed from the London market. The following table represents the total gross reserves for our asbestos exposure:

 

 

 

December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Direct written

 

 

 

 

 

 

 

 

 

 

 

 

Case reserves

 

$

2.0

 

 

$

2.5

 

 

$

1.7

 

Unallocated loss adjustment expense ("ULAE")

 

 

0.5

 

 

 

1.0

 

 

 

1.3

 

Incurred but not reported ("IBNR")

 

 

8.2

 

 

 

7.6

 

 

 

6.4

 

Total direct written reserves

 

 

10.7

 

 

 

11.1

 

 

 

9.4

 

Assumed domestic

 

 

 

 

 

 

 

 

 

 

 

 

Case reserves

 

 

12.2

 

 

 

13.2

 

 

 

15.7

 

ULAE

 

 

0.8

 

 

 

1.6

 

 

 

2.2

 

IBNR

 

 

13.7

 

 

 

15.8

 

 

 

15.8

 

Total assumed domestic reserves

 

 

26.7

 

 

 

30.6

 

 

 

33.7

 

Assumed London

 

 

 

 

 

 

 

 

 

 

 

 

Case reserves

 

 

4.0

 

 

 

4.7

 

 

 

5.8

 

ULAE

 

 

—

 

 

 

0.2

 

 

 

0.4

 

IBNR

 

 

1.4

 

 

 

1.2

 

 

 

1.4

 

Total assumed London reserves

 

 

5.4

 

 

 

6.1

 

 

 

7.6

 

Total asbestos reserves

 

$

42.8

 

 

$

47.8

 

 

$

50.7

 

 

The following table presents our net underwriting results for Run-off Lines:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Asbestos and Environmental:

 

 

 

 

 

 

 

 

 

 

 

 

Reinsurance assumed

 

$

(1.0

)

 

$

(8.3

)

 

$

(3.8

)

Other

 

 

(3.4

)

 

 

(5.0

)

 

 

(7.2

)

Total Asbestos and Environmental

 

 

(4.4

)

 

 

(13.3

)

 

 

(11.0

)

Risk management

 

 

(8.2

)

 

 

(15.5

)

 

 

(5.9

)

Run-off reinsurance lines

 

 

2.0

 

 

 

(1.5

)

 

 

(1.9

)

Other run-off lines

 

 

(3.5

)

 

 

(0.7

)

 

 

(0.8

)

Total Run-off Lines

 

$

(14.1

)

 

$

(31.0

)

 

$

(19.6

)

 

Reserves for asbestos and environmental claims cannot be estimated with traditional loss reserving techniques that rely on historical accident year loss development factors. The uncertainty in the asbestos and environmental reserves estimates arises from several factors including lack of historical data, inapplicability of standard actuarial projection techniques, uncertainty with regards to claim costs, coverage interpretations and judicial, statutory and regulatory provisions under which the claims may be ultimately resolved. It is impossible to predict how the courts will interpret coverage issues and these resolutions may have a material impact on the ultimate resolution of the asbestos and environmental liabilities. We use a variety of estimation methods to calculate reserves as a whole; however, reserves for asbestos and environmental claims were determined utilizing a variety of methods which rely on historical claim reporting and severity information for the industry as well as company specific information. We apply greatest weight to the methods that project future calendar period claims and severities because it best captures the unique claim reporting and severity characteristics of the underlying exposures. Although management has recorded its best estimate of loss reserves, due to the uncertainties of estimation of liability that may arise as discussed herein, further deterioration of claims could occur in the future.

Please see Note 5, “Reserves for Losses and Loss Adjustment Expenses” for further discussion.

v3.3.1.900
Statutory Accounting Principles
 12 Months Ended
Dec. 31, 2015
Statutory Accounting Principles [Abstract]  
Statutory Accounting Principles

20.

Statutory Accounting Principles

Financial Information

The statutory capital and surplus for our principal operating subsidiaries was as follows:

 

Statutory capital and surplus (1)

 

December 31,

 

(in millions)

 

2015

 

 

2014

 

Bermuda

 

$

1,260.1

 

 

$

1,261.1

 

United Kingdom (2)

 

 

232.8

 

 

 

224.5

 

United States

 

 

854.5

 

 

 

790.4

 

 

(1) 

Such amounts include ownership interests in affiliate insurance and reinsurance subsidiaries.

(2) 

Capital on deposit with Lloyd’s in U.S. Dollars

The statutory net income (loss) for our principal operating subsidiaries was as follows:

 

Statutory net income (loss) (1)

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Bermuda

 

$

182.2

 

 

$

128.2

 

 

$

124.2

 

United Kingdom (2)

 

 

34.8

 

 

 

28.7

 

 

 

42.3

 

United States

 

 

94.4

 

 

 

117.7

 

 

 

117.4

 

 

(1) 

Such amounts include ownership interests in affiliate insurance and reinsurance subsidiaries.

(2) 

In U.S. Dollars

Dividends

As an insurance and reinsurance holding company, we are largely dependent on dividends and other permitted payments from our insurance and reinsurance subsidiaries to pay cash dividends to our shareholders, for debt service and for our operating expenses. The ability of our insurance and reinsurance subsidiaries to pay dividends to us is subject to certain restrictions imposed by the jurisdictions of domicile that regulate our insurance and reinsurance subsidiaries and each jurisdiction has calculations for the amount of dividends that an insurance and reinsurance company can pay without the approval of the insurance regulator.

The payment of dividends to our shareholders is governed by the Bermuda Companies Act of 1981, as amended, which permits the payment of dividends so long as (i) we are not, or would not be after the payment, unable to pay our liabilities as they become due or (ii) the realizable value of our assets is in excess of our liabilities after taking such payment into account. In light of these restrictions, we have no material restrictions on dividend payments that may be made to our shareholders at December 31, 2015.

Argo Re is the direct subsidiary of Argo Group, and therefore, has direct dividend paying capabilities to the parent. As of December 31, 2015, Argo Re’s solvency and liquidity margins and statutory capital and surplus were in excess of the minimum levels required by the Insurance Act. As of December 31, 2015 and 2014, the minimum statutory capital and surplus required to be maintained by Argo Re was $345.9 million and $332.1 million, respectively.

Argo Re is generally prohibited from declaring or paying, in any financial year, dividends of more than 25% of its total statutory capital and surplus (as shown on its previous financial year’s statutory balance sheet) unless it files (at least seven days before payment of such dividends) with the Bermuda Monetary Authority (“BMA”) an affidavit signed by at least two directors (one of whom must be a Bermuda resident director if any of the insurer’s directors are resident in Bermuda) and the principal representative stating that it will continue to meet its solvency margin and minimum liquidity ratio. Argo Re may not reduce its total statutory capital by 15% or more, as set out in its previous year’s financial statements, unless it has received the prior approval of the BMA. Based on these regulatory restrictions, the maximum amount available for payment of dividends to Argo Group by Argo Re during 2016 without prior regulatory approval is $315.2 million.

In 2015, 2014 and 2013, Argo Re paid cash dividends to Argo Group of $41.0 million, $40.9 million and $84.5 million, respectively. The proceeds of the dividends were used to repay intercompany balances related primarily to dividend and interest payments and other corporate expenses.

Our U.S. insurance subsidiaries file financial statements prepared in accordance with statutory accounting principles prescribed or permitted by insurance regulatory authorities of the state in which they are domiciled. The differences between statutory-based financial statements and financial statements prepared in accordance with GAAP vary between jurisdictions. The principal differences are that for statutory-based financial statements, deferred policy acquisition costs are not recognized, a portion of the deferred federal income tax asset is non-admitted, bonds are generally carried at amortized cost, certain assets are non-admitted and charged directly to surplus, a collectability allowance related to reinsurance recoverables is charged directly to surplus and outstanding losses and unearned premium are presented net of reinsurance.

As an intermediate insurance holding company, Argo Group US is largely dependent on dividends and other permitted payments from its insurance subsidiaries to service its debt, fund operating expenses and pay dividends to Argo Ireland. Various state insurance laws restrict the amount that may be transferred to Argo Group US from its subsidiaries in the form of dividends without prior approval of regulatory authorities. In addition, that portion of the insurance subsidiaries’ net equity that results from the difference between statutory insurance principles and GAAP would not be available for dividends.

Argo Group US did not receive dividends from its subsidiaries in 2015.

In December 2014, Argo Group US received an extraordinary dividend in the amount of $20.0 million in cash from Rockwood. In December 2014, Argo Group US received an ordinary dividend of $48.8 million, in the form of $0.1 million in cash and $48.7 million in securities, from Argonaut Insurance Company. In December 2014, Argo Group US received an extraordinary dividend of $55.2 million, in the form of $0.2 million in cash and $55.0 million in securities, from Colony.

In December 2013, Argo Group US received an ordinary dividend in the amount of $9.5 million in cash from Rockwood, an ordinary dividend in the amount of $24.8 million, in the form of $0.1 million in cash and $24.7 million in the form of securities, from Argonaut Insurance Company, and an extraordinary dividend of $76.2 million, in the form of $0.3 million in cash and $75.9 million in the form of securities, from Colony.

Argonaut Insurance Company is a direct subsidiary of Argo Group US and is regulated by the Illinois Division of Insurance. During 2016, Argonaut Insurance Company may be permitted to pay dividends of up to $41.6 million without approval from the Illinois Division of Insurance. Colony, a direct subsidiary of Argo Group US, is regulated by the Virginia Bureau of Insurance. Colony may be permitted to pay dividends of up to $35.0 million without approval from the Virginia Bureau of Insurance during 2016. Rockwood, a direct subsidiary of Argo Group US, is regulated by the Pennsylvania Department of Insurance. Rockwood may be permitted to pay dividends of up to $18.2 million without approval from the Pennsylvania Department of Insurance during 2016. Each department of insurance may require prior approval for the payment of all dividends, based on business and regulatory conditions of the insurance companies.

Dividend payments from Syndicate 1200 to its immediate parent are not restricted by regulatory authority. Dividend payments will be subject to the earnings, operations, financial condition, capital and general business requirements of Syndicate 1200.

Certain assets of our subsidiaries are pledged to regulatory agencies, serve as collateral for letters of credit or are assigned as the assets of the trade capital providers of our Lloyd’s syndicate, and therefore, are not available funds that may be paid up as dividends to Argo Group. See Note 2, “Investments” and Note 18, “Segment Information” for further discussion.

 
v3.3.1.900
Insurance Assessments
 12 Months Ended
Dec. 31, 2015
Insurance [Abstract]  
Insurance Assessments

21.

Insurance Assessments

We are required to participate in statutorily created insolvency guarantee and weather-related loss protection associations in all states in the U.S. where we are authorized to transact business. These associations were formed for the purpose of paying the claims of insolvent companies. We are assessed a pro-rata share of such claims based upon our premium writings, subject to a maximum annual assessment per line of insurance. Certain of these assessments can be recovered through premium tax offsets or policy surcharges. We do not believe that assessments on current insolvencies will have a material impact on our financial condition or results of operations. We have accrued assessments of $4.1 million and $17.0 million at December 31, 2015 and 2014, respectively. The decrease in the accrual from December 31, 2014 to December 31, 2015, was primarily attributable to a change in accounting estimates.
v3.3.1.900
Transactions with Related Parties
 12 Months Ended
Dec. 31, 2015
Related Party Transactions [Abstract]  
Transactions with Related Parties

22.

Transactions with Related Parties

In 2013, our Surety unit received a submission through its established broker network to issue approximately $13 million of surety bonds on behalf of Kinetica Partners, LLC (“Kinetica”) in connection with a Gulf of Mexico pipeline project. Mr. Gary Woods, Chairman of our Board of Directors, is the President of Kinetica, and beneficially owns 10% of Kinetica through a family trust. The submission was underwritten, priced and bound in the ordinary course of business by the Surety unit. The terms and conditions of the surety bonds that were issued and the premium charged to Kinetica for issuance of the bonds, were consistent with those routinely applied and charged for similarly situated risks bound for unrelated third-parties. Per the Surety unit’s standard requirements in connection with the issuance of surety bonds, Kinetica and Mr. Woods, in his personal capacity, among others, executed our Surety unit’s standard form of indemnity agreement holding our Surety unit harmless against any and all losses and expenses incurred resulting from the issuance of the surety bonds.

 
v3.3.1.900
Unaudited Quarterly Financial Data
 12 Months Ended
Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]  
Unaudited Quarterly Financial Data

23.

Unaudited Quarterly Financial Data

The following tables represent unaudited quarterly financial data for the years ended December 31, 2015 and 2014. In the opinion of management, all adjustments necessary to present fairly the results of operations for such periods have been made. Total revenue, net income before income taxes and net income include realized gains or losses from the sale of investments and other. We cannot anticipate when or if similar gains or losses may occur in the future. Since financial results rely heavily on estimates, caution should be used in drawing specific conclusions from quarterly consolidated results.

 

(in millions, except per share amounts)

 

1st Quarter

 

 

2nd Quarter

 

 

3rd Quarter

 

 

4th Quarter

 

 

Year

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

371.4

 

 

$

373.1

 

 

$

371.0

 

 

$

369.1

 

 

$

1,484.6

 

Net income before income taxes

 

 

62.4

 

 

 

34.7

 

 

 

36.2

 

 

 

44.2

 

 

 

177.5

 

Net income

 

 

58.8

 

 

 

27.9

 

 

 

35.3

 

 

 

41.2

 

 

 

163.2

 

Net income per common share :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

2.09

 

 

$

1.00

 

 

$

1.27

 

 

$

1.48

 

 

$

5.84

 

Diluted*

 

$

2.05

 

 

$

0.98

 

 

$

1.24

 

 

$

1.44

 

 

$

5.72

 

Comprehensive income (loss)

 

$

36.8

 

 

$

18.9

 

 

$

(18.3

)

 

$

29.2

 

 

$

66.6

 

 

(in millions, except per share amounts)

 

1st Quarter

 

 

2nd Quarter

 

 

3rd Quarter

 

 

4th Quarter

 

 

Year

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

360.1

 

 

$

375.2

 

 

$

371.3

 

 

$

412.1

 

 

$

1,518.7

 

Net income before income taxes

 

 

42.7

 

 

 

44.7

 

 

 

48.3

 

 

 

80.3

 

 

 

216.0

 

Net income

 

 

40.2

 

 

 

38.6

 

 

 

44.7

 

 

 

59.7

 

 

 

183.2

 

Net income per common share :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

1.38

 

 

$

1.34

 

 

$

1.57

 

 

$

2.11

 

 

$

6.39

 

Diluted*

 

$

1.36

 

 

$

1.32

 

 

$

1.54

 

 

$

2.07

 

 

$

6.27

 

Comprehensive income

 

$

41.3

 

 

$

64.1

 

 

$

6.8

 

 

$

31.3

 

 

$

143.5

 

 

*

Basic and diluted net income per common share are computed independently for each quarter and full year based on the respective average number of common shares outstanding; therefore, the sum of the quarterly net income per common share data may not equal the net income per common share for the year.

 
v3.3.1.900
Information Provided in Connection with Outstanding Debt of Subsidiaries
 12 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Information Provided in Connection with Outstanding Debt of Subsidiaries

24.

Information Provided in Connection with Outstanding Debt of Subsidiaries

In September 2012, Argo Group (the “Parent Guarantor”), through its subsidiary Argo Group US (the “Subsidiary Issuer”), issued $143,750,000 aggregate principal amount of the Subsidiary Issuer’s 6.5% Senior Notes due September 15, 2042 (the “Notes”). The Notes are unsecured and unsubordinated obligations of the Subsidiary Issuer and rank equally in right of payment with all of the Subsidiary Issuer’s other unsecured and unsubordinated debt. The Notes are guaranteed on a full and unconditional senior unsecured basis by the Parent Guarantor. The Notes may be redeemed, for cash, in whole or in part, on or after September 15, 2017, at the Subsidiary Issuer’s option, at any time and from time to time, prior to maturity at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date.

The following tables present condensed consolidating financial information at December 31, 2015 and 2014 and for the three years ended December 31, 2015, 2014 and 2013, for the Parent Guarantor and the Subsidiary Issuer. The Subsidiary Issuer is an indirect wholly-owned subsidiary of the Parent Guarantor. Investments in subsidiaries are accounted for by the Parent Guarantor under the equity method for purposes of the supplemental consolidating presentation. Earnings of subsidiaries are reflected in the Parent Guarantor’s investment accounts and earnings.

Condensed consolidating financial information of the Subsidiary Issuer is presented on a consolidated basis and consists principally of the net assets, results of operations and cash flows of operating insurance company subsidiaries.

 

 

 

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2015

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

$

6.2

 

 

$

2,761.0

 

 

$

1,348.5

 

 

$

—

 

 

$

4,115.7

 

Cash

 

 

—

 

 

 

88.8

 

 

 

32.9

 

 

 

—

 

 

 

121.7

 

Accrued investment income

 

 

—

 

 

 

16.4

 

 

 

5.2

 

 

 

—

 

 

 

21.6

 

Premiums receivable

 

 

—

 

 

 

166.4

 

 

 

238.1

 

 

 

—

 

 

 

404.5

 

Reinsurance recoverables

 

 

—

 

 

 

1,212.2

 

 

 

(91.1

)

 

 

—

 

 

 

1,121.1

 

Goodwill and other intangible assets, net

 

 

—

 

 

 

129.8

 

 

 

95.7

 

 

 

—

 

 

 

225.5

 

Current income taxes receivable, net

 

 

—

 

 

 

4.7

 

 

 

6.9

 

 

 

—

 

 

 

11.6

 

Deferred acquisition costs, net

 

 

—

 

 

 

58.2

 

 

 

74.2

 

 

 

—

 

 

 

132.4

 

Ceded unearned premiums

 

 

—

 

 

 

125.8

 

 

 

125.0

 

 

 

—

 

 

 

250.8

 

Other assets

 

 

8.2

 

 

 

156.2

 

 

 

60.8

 

 

 

—

 

 

 

225.2

 

Due (to) from affiliates

 

 

(17.5

)

 

 

(2.3

)

 

 

2.3

 

 

 

17.5

 

 

 

—

 

Intercompany note receivable

 

 

—

 

 

 

49.8

 

 

 

(49.8

)

 

 

—

 

 

 

—

 

Investments in subsidiaries

 

 

1,715.9

 

 

 

—

 

 

 

—

 

 

 

(1,715.9

)

 

 

—

 

Total assets

 

$

1,712.8

 

 

$

4,767.0

 

 

$

1,848.7

 

 

$

(1,698.4

)

 

$

6,630.1

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves for losses and loss adjustment expenses

 

$

—

 

 

$

2,194.1

 

 

$

929.5

 

 

$

—

 

 

$

3,123.6

 

Unearned premiums

 

 

—

 

 

 

501.5

 

 

 

385.2

 

 

 

—

 

 

 

886.7

 

Funds held and ceded reinsurance payable, net

 

 

—

 

 

 

702.6

 

 

 

(312.6

)

 

 

—

 

 

 

390.0

 

Long-term debt

 

 

28.4

 

 

 

288.7

 

 

 

54.6

 

 

 

—

 

 

 

371.7

 

Deferred tax liabilities, net

 

 

—

 

 

 

11.9

 

 

 

11.7

 

 

 

—

 

 

 

23.6

 

Accrued underwriting expenses and other liabilities

 

 

16.3

 

 

 

95.4

 

 

 

54.7

 

 

 

—

 

 

 

166.4

 

Total liabilities

 

 

44.7

 

 

 

3,794.2

 

 

 

1,123.1

 

 

 

—

 

 

 

4,962.0

 

Total shareholders' equity

 

 

1,668.1

 

 

 

972.8

 

 

 

725.6

 

 

 

(1,698.4

)

 

 

1,668.1

 

Total liabilities and shareholders' equity

 

$

1,712.8

 

 

$

4,767.0

 

 

$

1,848.7

 

 

$

(1,698.4

)

 

$

6,630.1

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

 

 

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2014

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

$

0.7

 

 

$

2,841.5

 

 

$

1,255.7

 

 

$

—

 

 

$

4,097.9

 

Cash

 

 

—

 

 

 

49.3

 

 

 

31.7

 

 

 

—

 

 

 

81.0

 

Accrued investment income

 

 

—

 

 

 

17.8

 

 

 

4.3

 

 

 

—

 

 

 

22.1

 

Premiums receivable

 

 

—

 

 

 

154.6

 

 

 

199.0

 

 

 

—

 

 

 

353.6

 

Reinsurance recoverables

 

 

—

 

 

 

1,173.6

 

 

 

(176.4

)

 

 

—

 

 

 

997.2

 

Goodwill and other intangible assets, net

 

 

—

 

 

 

131.7

 

 

 

99.1

 

 

 

—

 

 

 

230.8

 

Current income taxes receivable, net

 

 

—

 

 

 

10.1

 

 

 

4.8

 

 

 

—

 

 

 

14.9

 

Deferred acquisition costs, net

 

 

—

 

 

 

58.0

 

 

 

66.6

 

 

 

—

 

 

 

124.6

 

Ceded unearned premiums

 

 

—

 

 

 

98.5

 

 

 

109.1

 

 

 

—

 

 

 

207.6

 

Other assets

 

 

9.6

 

 

 

174.1

 

 

 

67.9

 

 

 

(25.0

)

 

 

226.6

 

Due (to) from affiliates

 

 

2.9

 

 

 

(19.8

)

 

 

19.8

 

 

 

(2.9

)

 

 

—

 

Intercompany note receivable

 

 

—

 

 

 

72.0

 

 

 

(72.0

)

 

 

—

 

 

 

—

 

Investments in subsidiaries

 

 

1,698.0

 

 

 

—

 

 

 

—

 

 

 

(1,698.0

)

 

 

—

 

Total assets

 

$

1,711.2

 

 

$

4,761.4

 

 

$

1,609.6

 

 

$

(1,725.9

)

 

$

6,356.3

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves for losses and loss adjustment expenses

 

$

—

 

 

$

2,136.4

 

 

$

906.0

 

 

$

—

 

 

$

3,042.4

 

Unearned premiums

 

 

—

 

 

 

448.9

 

 

 

368.3

 

 

 

—

 

 

 

817.2

 

Funds held and ceded reinsurance payable, net

 

 

—

 

 

 

675.1

 

 

 

(441.3

)

 

 

—

 

 

 

233.8

 

Long-term debt

 

 

49.0

 

 

 

288.7

 

 

 

61.4

 

 

 

(20.6

)

 

 

378.5

 

Deferred tax liabilities, net

 

 

—

 

 

 

41.2

 

 

 

11.8

 

 

 

—

 

 

 

53.0

 

Accrued underwriting expenses and other liabilities

 

 

15.5

 

 

 

104.2

 

 

 

65.0

 

 

 

—

 

 

 

184.7

 

Total liabilities

 

 

64.5

 

 

 

3,694.5

 

 

 

971.2

 

 

 

(20.6

)

 

 

4,709.6

 

Total shareholders' equity

 

 

1,646.7

 

 

 

1,066.9

 

 

 

638.4

 

 

 

(1,705.3

)

 

 

1,646.7

 

Total liabilities and shareholders' equity

 

$

1,711.2

 

 

$

4,761.4

 

 

$

1,609.6

 

 

$

(1,725.9

)

 

$

6,356.3

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

 

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2015

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Premiums and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned premiums

 

$

—

 

 

$

497.3

 

 

$

874.6

 

 

$

—

 

 

$

1,371.9

 

Net investment income

 

 

40.1

 

 

 

56.0

 

 

 

30.5

 

 

 

(41.0

)

 

 

85.6

 

Net realized investment and other gains

 

 

—

 

 

 

34.8

 

 

 

(7.7

)

 

 

—

 

 

 

27.1

 

Total revenue

 

 

40.1

 

 

 

588.1

 

 

 

897.4

 

 

 

(41.0

)

 

 

1,484.6

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

—

 

 

 

304.2

 

 

 

461.9

 

 

 

—

 

 

 

766.1

 

Underwriting, acquisition and insurance

   expenses

 

 

19.0

 

 

 

198.4

 

 

 

322.2

 

 

 

—

 

 

 

539.6

 

Interest expense

 

 

1.5

 

 

 

15.3

 

 

 

2.2

 

 

 

—

 

 

 

19.0

 

Fee and other expense, net

 

 

—

 

 

 

4.3

 

 

 

(3.6

)

 

 

—

 

 

 

0.7

 

Foreign currency exchange loss (gains)

 

 

—

 

 

 

1.0

 

 

 

(19.3

)

 

 

—

 

 

 

(18.3

)

Total expenses

 

 

20.5

 

 

 

523.2

 

 

 

763.4

 

 

 

—

 

 

 

1,307.1

 

Income before income taxes

 

 

19.6

 

 

 

64.9

 

 

 

134.0

 

 

 

(41.0

)

 

 

177.5

 

Provision for income taxes

 

 

—

 

 

 

12.9

 

 

 

1.4

 

 

 

—

 

 

 

14.3

 

Net income before equity in earnings of

   subsidiaries

 

 

19.6

 

 

 

52.0

 

 

 

132.6

 

 

 

(41.0

)

 

 

163.2

 

Equity in undistributed earnings of

   subsidiaries

 

 

143.6

 

 

 

—

 

 

 

—

 

 

 

(143.6

)

 

 

—

 

Net income

 

$

163.2

 

 

$

52.0

 

 

$

132.6

 

 

$

(184.6

)

 

$

163.2

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

 

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2014

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Premiums and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned premiums

 

$

—

 

 

$

461.0

 

 

$

877.1

 

 

$

—

 

 

$

1,338.1

 

Net investment income

 

 

40.5

 

 

 

56.7

 

 

 

(10.6

)

 

 

—

 

 

 

86.6

 

Net realized investment and other gains

 

 

2.0

 

 

 

86.9

 

 

 

7.1

 

 

 

(2.0

)

 

 

94.0

 

Total revenue

 

 

42.5

 

 

 

604.6

 

 

 

873.6

 

 

 

(2.0

)

 

 

1,518.7

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

—

 

 

 

285.6

 

 

 

461.8

 

 

 

—

 

 

 

747.4

 

Underwriting, acquisition and insurance

   expenses

 

 

17.3

 

 

 

199.9

 

 

 

322.0

 

 

 

—

 

 

 

539.2

 

Interest expense

 

 

2.3

 

 

 

15.2

 

 

 

2.7

 

 

 

(0.3

)

 

 

19.9

 

Fee and other expense, net

 

 

—

 

 

 

2.4

 

 

 

(1.8

)

 

 

—

 

 

 

0.6

 

Foreign currency exchange loss (gains)

 

 

—

 

 

 

0.4

 

 

 

(8.2

)

 

 

—

 

 

 

(7.8

)

Impairment of intangible assets

 

 

—

 

 

 

3.4

 

 

 

—

 

 

 

—

 

 

 

3.4

 

Total expenses

 

 

19.6

 

 

 

506.9

 

 

 

776.5

 

 

 

(0.3

)

 

 

1,302.7

 

Income before income taxes

 

 

22.9

 

 

 

97.7

 

 

 

97.1

 

 

 

(1.7

)

 

 

216.0

 

Provision for income taxes

 

 

—

 

 

 

27.5

 

 

 

5.3

 

 

 

—

 

 

 

32.8

 

Net income before equity in earnings of

   subsidiaries

 

 

22.9

 

 

 

70.2

 

 

 

91.8

 

 

 

(1.7

)

 

 

183.2

 

Equity in undistributed earnings of

   subsidiaries

 

 

160.3

 

 

 

—

 

 

 

—

 

 

 

(160.3

)

 

 

—

 

Net income

 

$

183.2

 

 

$

70.2

 

 

$

91.8

 

 

$

(162.0

)

 

$

183.2

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

 

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2013

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Premiums and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned premiums

 

$

—

 

 

$

439.9

 

 

$

863.9

 

 

$

—

 

 

$

1,303.8

 

Net investment income

 

 

84.5

 

 

 

73.4

 

 

 

(57.9

)

 

 

—

 

 

 

100.0

 

Net realized investment and other gains

 

 

—

 

 

 

72.2

 

 

 

(0.9

)

 

 

—

 

 

 

71.3

 

Total revenue

 

 

84.5

 

 

 

585.5

 

 

 

805.1

 

 

 

—

 

 

 

1,475.1

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

—

 

 

 

268.6

 

 

 

473.4

 

 

 

—

 

 

 

742.0

 

Other reinsurance-related expenses

 

 

—

 

 

 

—

 

 

 

19.2

 

 

 

—

 

 

 

19.2

 

Underwriting, acquisition and insurance

   expenses

 

 

27.4

 

 

 

176.9

 

 

 

306.5

 

 

 

—

 

 

 

510.8

 

Interest expense

 

 

3.3

 

 

 

15.2

 

 

 

2.9

 

 

 

(1.2

)

 

 

20.2

 

Fee and other expense, net

 

 

—

 

 

 

4.1

 

 

 

0.8

 

 

 

—

 

 

 

4.9

 

Foreign currency exchange gain

 

 

—

 

 

 

(0.3

)

 

 

(1.4

)

 

 

—

 

 

 

(1.7

)

Total expenses

 

 

30.7

 

 

 

464.5

 

 

 

801.4

 

 

 

(1.2

)

 

 

1,295.4

 

Income before income taxes

 

 

53.8

 

 

 

121.0

 

 

 

3.7

 

 

 

1.2

 

 

 

179.7

 

Provision for income taxes

 

 

—

 

 

 

34.1

 

 

 

2.4

 

 

 

—

 

 

 

36.5

 

Net income before equity in earnings of

   subsidiaries

 

 

53.8

 

 

 

86.9

 

 

 

1.3

 

 

 

1.2

 

 

 

143.2

 

Equity in undistributed earnings of

   subsidiaries

 

 

89.4

 

 

 

—

 

 

 

—

 

 

 

(89.4

)

 

 

—

 

Net income

 

$

143.2

 

 

$

86.9

 

 

$

1.3

 

 

$

(88.2

)

 

$

143.2

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR YEAR ENDED DECEMBER 31, 2015

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Net cash flows from operating activities

 

$

32.7

 

 

$

116.4

 

 

$

133.5

 

 

$

—

 

 

$

282.6

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales of investments

 

 

—

 

 

 

631.1

 

 

 

336.8

 

 

 

—

 

 

 

967.9

 

Maturities and mandatory calls of fixed

   maturity investments

 

 

—

 

 

 

681.8

 

 

 

162.1

 

 

 

—

 

 

 

843.9

 

Purchases of investments

 

 

—

 

 

 

(1,384.5

)

 

 

(649.6

)

 

 

—

 

 

 

(2,034.1

)

Change in short-term investments and

   foreign regulatory deposits

 

 

0.9

 

 

 

14.9

 

 

 

33.8

 

 

 

—

 

 

 

49.6

 

Settlements of foreign currency exchange

   forward contracts

 

 

1.5

 

 

 

—

 

 

 

(11.6

)

 

 

—

 

 

 

(10.1

)

Issuance of intercompany note, net

 

 

—

 

 

 

7.5

 

 

 

(7.5

)

 

 

—

 

 

 

—

 

Redemption of PXRE Capital Trust V

 

 

—

 

 

 

18.0

 

 

 

(18.0

)

 

 

—

 

 

 

—

 

Purchases of fixed assets and other, net

 

 

3.8

 

 

 

(16.6

)

 

 

2.0

 

 

 

—

 

 

 

(10.8

)

Cash provided (used) by investing activities

 

 

6.2

 

 

 

(47.8

)

 

 

(152.0

)

 

 

—

 

 

 

(193.6

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redemption of PXRE Capital Trust V

 

 

(18.0

)

 

 

—

 

 

 

18.0

 

 

 

—

 

 

 

—

 

Activity under stock incentive plans

 

 

1.8

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1.8

 

Repurchase of Company's common shares

 

 

—

 

 

 

(29.7

)

 

 

—

 

 

 

—

 

 

 

(29.7

)

Excess tax expense from share-based

   payment arrangements

 

 

—

 

 

 

0.6

 

 

 

—

 

 

 

—

 

 

 

0.6

 

Payment of cash dividend to common

   shareholders

 

 

(22.7

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(22.7

)

Cash used (provided) by financing activities

 

 

(38.9

)

 

 

(29.1

)

 

 

18.0

 

 

 

—

 

 

 

(50.0

)

Effect of exchange rate changes on cash

 

 

—

 

 

 

—

 

 

 

1.7

 

 

 

—

 

 

 

1.7

 

Change in cash

 

 

—

 

 

 

39.5

 

 

 

1.2

 

 

 

—

 

 

 

40.7

 

Cash, beginning of year

 

 

—

 

 

 

49.3

 

 

 

31.7

 

 

 

—

 

 

 

81.0

 

Cash, end of year

 

$

—

 

 

$

88.8

 

 

$

32.9

 

 

$

—

 

 

$

121.7

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

 

 

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR YEAR ENDED DECEMBER 31, 2014

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Net cash flows from operating activities

 

$

25.7

 

 

$

43.2

 

 

$

37.2

 

 

$

24.4

 

 

$

130.5

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales of investments

 

 

—

 

 

 

803.8

 

 

 

458.2

 

 

 

—

 

 

 

1,262.0

 

Maturities and mandatory calls of fixed

   maturity investments

 

 

—

 

 

 

192.1

 

 

 

130.9

 

 

 

—

 

 

 

323.0

 

Purchases of investments

 

 

—

 

 

 

(1,126.1

)

 

 

(610.7

)

 

 

—

 

 

 

(1,736.8

)

Change in short-term investments and

   foreign regulatory deposits

 

 

0.5

 

 

 

76.0

 

 

 

20.0

 

 

 

—

 

 

 

96.5

 

Settlements of foreign currency exchange

   forward contracts

 

 

1.3

 

 

 

—

 

 

 

(2.4

)

 

 

—

 

 

 

(1.1

)

Issuance of intercompany note, net

 

 

—

 

 

 

14.5

 

 

 

(7.6

)

 

 

(6.9

)

 

 

—

 

Purchases of fixed assets and other, net

 

 

(7.0

)

 

 

(35.5

)

 

 

(16.0

)

 

 

(6.4

)

 

 

(64.9

)

Cash (used) provided by investing activities

 

 

(5.2

)

 

 

(75.2

)

 

 

(27.6

)

 

$

(13.3

)

 

 

(121.3

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings under intercompany note, net

 

 

(6.9

)

 

 

—

 

 

 

—

 

 

 

6.9

 

 

 

—

 

Activity under stock incentive plans

 

 

4.6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4.6

 

Redemption of trust preferred securities, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(18.0

)

 

 

(18.0

)

Payment on note payable

 

 

—

 

 

 

(0.1

)

 

 

—

 

 

 

—

 

 

 

(0.1

)

Repurchase of Company's common shares

 

 

—

 

 

 

(50.8

)

 

 

—

 

 

 

—

 

 

 

(50.8

)

Excess tax expense from share-based payment

   arrangements

 

 

—

 

 

 

0.1

 

 

 

—

 

 

 

—

 

 

 

0.1

 

Payment of cash dividend to common

   shareholders

 

 

(18.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(18.2

)

Cash provided (used) by financing activities

 

 

(20.5

)

 

 

(50.8

)

 

 

—

 

 

$

(11.1

)

 

 

(82.4

)

Effect of exchange rate changes on cash

 

 

—

 

 

 

—

 

 

 

(3.2

)

 

 

—

 

 

 

(3.2

)

Change in cash

 

 

—

 

 

 

(82.8

)

 

 

6.4

 

 

 

—

 

 

 

(76.4

)

Cash, beginning of year

 

 

—

 

 

 

132.1

 

 

 

25.3

 

 

 

—

 

 

 

157.4

 

Cash, end of year

 

$

—

 

 

$

49.3

 

 

$

31.7

 

 

$

—

 

 

$

81.0

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

 

 

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR YEAR ENDED DECEMBER 31, 2013

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Net cash flows from operating activities

 

$

63.2

 

 

$

62.5

 

 

$

(125.9

)

 

$

—

 

 

$

(0.2

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales of investments

 

 

—

 

 

 

1,130.2

 

 

 

836.1

 

 

 

—

 

 

 

1,966.3

 

Maturities and mandatory calls of fixed

   maturity investments

 

 

—

 

 

 

168.9

 

 

 

112.9

 

 

 

—

 

 

 

281.8

 

Purchases of investments

 

 

—

 

 

 

(1,156.7

)

 

 

(819.1

)

 

 

—

 

 

 

(1,975.8

)

Change in short-term investments and

   foreign regulatory deposits

 

 

(1.4

)

 

 

(119.1

)

 

 

(32.5

)

 

 

—

 

 

 

(153.0

)

Settlements of foreign currency exchange

   forward contracts

 

 

0.7

 

 

 

—

 

 

 

(4.6

)

 

 

—

 

 

 

(3.9

)

Issuance of intercompany note, net

 

 

—

 

 

 

35.0

 

 

 

14.3

 

 

 

(49.3

)

 

 

—

 

Purchases of fixed assets and other, net

 

 

—

 

 

 

(16.3

)

 

 

21.7

 

 

 

—

 

 

 

5.4

 

Cash provided (used) by investing activities

 

 

(0.7

)

 

 

42.0

 

 

 

128.8

 

 

 

(49.3

)

 

 

120.8

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings under intercompany note, net

 

 

(49.3

)

 

 

—

 

 

 

—

 

 

 

49.3

 

 

 

—

 

Proceeds from issuance of senior

   unsecured fixed rate notes

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Redemption of trust preferred securities, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Activity under stock incentive plans

 

 

2.6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2.6

 

Repurchase of Company's common shares

 

 

—

 

 

 

(46.5

)

 

 

—

 

 

 

—

 

 

 

(46.5

)

Excess tax benefit from share-based payment

   arrangements

 

 

—

 

 

 

0.2

 

 

 

—

 

 

 

—

 

 

 

0.2

 

Payment of cash dividend to common

   shareholders

 

 

(15.8

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(15.8

)

Cash provided (used) by financing activities

 

 

(62.5

)

 

 

(46.3

)

 

 

—

 

 

 

49.3

 

 

 

(59.5

)

Effect of exchange rate changes on cash

 

 

—

 

 

 

—

 

 

 

0.5

 

 

 

—

 

 

 

0.5

 

Change in cash

 

 

—

 

 

 

58.2

 

 

 

3.4

 

 

 

—

 

 

 

61.6

 

Cash, beginning of year

 

 

—

 

 

 

73.9

 

 

 

21.9

 

 

 

—

 

 

 

95.8

 

Cash, end of year

 

$

—

 

 

$

132.1

 

 

$

25.3

 

 

$

—

 

 

$

157.4

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 
v3.3.1.900
Schedule II Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2015
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]  
Schedule II Condensed Financial Information of Registrant

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(in millions)

 

 

BALANCE  SHEETS

 

 

 

December 31,

 

 

 

 

 

2015

 

 

2014

 

Assets

 

 

 

 

 

 

 

 

 

 

Other investments, unrealized gain (loss) on foreign currency

   exchange forward contracts

 

 

 

$

5.2

 

 

$

(1.2

)

Short-term investments

 

 

 

 

1.0

 

 

 

1.9

 

Investment in subsidiaries

 

 

 

 

1,715.9

 

 

 

1,698.0

 

Due (to) from subsidiaries

 

 

 

 

(17.5

)

 

 

2.9

 

Other assets

 

 

 

 

8.2

 

 

 

9.6

 

Total assets

 

 

 

$

1,712.8

 

 

$

1,711.2

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

Junior subordinated debentures

 

 

 

$

28.4

 

 

$

49.0

 

Accrued underwriting expenses

 

 

 

 

16.3

 

 

 

15.5

 

Total liabilities

 

 

 

 

44.7

 

 

 

64.5

 

Shareholders' equity

 

 

 

 

1,668.1

 

 

 

1,646.7

 

Total liabilities and shareholders' equity

 

 

 

$

1,712.8

 

 

$

1,711.2

 

 

 

STATEMENTS OF INCOME

 

For the Years Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income (1)

 

$

40.1

 

 

$

40.5

 

 

$

84.5

 

Net realized investment and other gains

 

 

—

 

 

 

2.0

 

 

 

—

 

Total revenue

 

 

40.1

 

 

 

42.5

 

 

 

84.5

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1.5

 

 

 

2.3

 

 

 

3.3

 

Other expenses

 

 

19.0

 

 

 

17.3

 

 

 

27.4

 

Total expenses

 

 

20.5

 

 

 

19.6

 

 

 

30.7

 

Net income before equity in earnings of

   subsidiaries (2)

 

 

19.6

 

 

 

22.9

 

 

 

53.8

 

Equity in undistributed earnings of subsidiaries

 

 

143.6

 

 

 

160.3

 

 

 

89.4

 

Net income

 

$

163.2

 

 

$

183.2

 

 

$

143.2

 

 

(1) 

For the years ended December 31, 2015 and 2014, net investment income includes intercompany dividends of $41.0 million and $40.9 million, respectively.

(2) 

Argo Group International Holdings, Ltd. is not subject to taxation.

 

 

 

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(in millions)

 

STATEMENTS OF CASH FLOWS

 

For the Years Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

163.2

 

 

$

183.2

 

 

$

143.2

 

Adjustments to reconcile net income to net cash provided (used) by

   operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization and depreciation

 

 

0.2

 

 

 

—

 

 

 

0.7

 

Share-based payments expense

 

 

8.2

 

 

 

5.7

 

 

 

8.7

 

Net realized investment and other gains

 

 

—

 

 

 

(2.0

)

 

 

—

 

Undistributed earnings of subsidiaries

 

 

(143.6

)

 

 

(160.3

)

 

 

(89.4

)

Change in:

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid assets

 

 

0.2

 

 

 

2.0

 

 

 

(0.1

)

Accrued underwriting expenses

 

 

(2.4

)

 

 

(2.2

)

 

 

(0.9

)

Due to subsidiaries

 

 

12.5

 

 

 

(0.6

)

 

 

0.2

 

Interest on intercompany note payable

 

 

—

 

 

 

0.3

 

 

 

0.8

 

Other, net

 

 

(5.6

)

 

 

(0.4

)

 

 

—

 

Cash provided by operating activities

 

 

32.7

 

 

 

25.7

 

 

 

63.2

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Change in short-term investments

 

 

0.9

 

 

 

0.5

 

 

 

(1.4

)

Settlements of foreign currency exchange forward contracts

 

 

1.5

 

 

 

1.3

 

 

 

0.7

 

Purchases of fixed assets and other, net

 

 

3.8

 

 

 

(7.0

)

 

 

—

 

Cash provided (used) by investing activities

 

 

6.2

 

 

 

(5.2

)

 

 

(0.7

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings under intercompany note payable, net

 

 

—

 

 

 

(6.9

)

 

 

(49.3

)

Activity under stock incentive plans

 

 

1.8

 

 

 

4.6

 

 

 

2.6

 

Redemption of PXRE Capital Trust V

 

 

(18.0

)

 

 

—

 

 

 

—

 

Payment of cash dividend to common shareholders

 

 

(22.7

)

 

 

(18.2

)

 

 

(15.8

)

Cash used by financing activities

 

 

(38.9

)

 

 

(20.5

)

 

 

(62.5

)

Change in cash

 

 

—

 

 

 

—

 

 

 

—

 

Cash, beginning of year

 

 

—

 

 

 

—

 

 

 

—

 

Cash, end of year

 

$

—

 

 

$

—

 

 

$

—

 

 
v3.3.1.900
Schedule III Supplemental Insurance Information
 12 Months Ended
Dec. 31, 2015
Supplementary Insurance Information [Abstract]  
Schedule III Supplemental Insurance Information

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

SCHEDULE III

SUPPLEMENTAL INSURANCE INFORMATION

FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

(in millions)

 

Segment

 

DAC

(a)

 

 

Reserves for

Losses and Loss

Adjustment

Expenses

(b)

 

 

UPR

(c)

 

 

Premium

Revenue

(d)

 

 

Net

Investment

Income

(l)

 

 

Loss

& LAE

(e)

 

 

Amortization

(Deferral)

DAC

(f) (2)

 

 

Other

Operating

Expenses

(3)

 

 

Net

Premiums

Written

(g)

 

Year Ended December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess and Surplus Lines

 

$

38.3

 

 

$

1,204.9

 

 

$

307.1

 

 

$

525.3

 

 

$

35.2

 

 

$

291.8

 

 

$

(1.4

)

 

$

168.1

 

 

$

552.9

 

Commercial Specialty

 

 

20.1

 

 

 

683.7

 

 

 

194.1

 

 

 

290.1

 

 

 

18.5

 

 

 

179.3

 

 

 

2.4

 

 

 

90.3

 

 

 

285.6

 

International Specialty

 

 

2.1

 

 

 

324.7

 

 

 

123.3

 

 

 

148.7

 

 

 

11.8

 

 

 

72.8

 

 

 

(2.0

)

 

 

55.4

 

 

 

159.9

 

Syndicate 1200

 

 

71.9

 

 

 

604.0

 

 

 

262.2

 

 

 

407.4

 

 

 

9.2

 

 

 

213.6

 

 

 

0.1

 

 

 

169.8

 

 

 

403.3

 

Run-off Lines

 

 

—

 

 

 

306.3

 

 

 

—

 

 

 

0.4

 

 

 

8.3

 

 

 

8.6

 

 

 

—

 

 

 

5.9

 

 

 

0.4

 

Corporate and Other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2.6

 

 

 

—

 

 

 

—

 

 

 

51.0

 

 

 

—

 

Total

 

$

132.4

 

 

$

3,123.6

 

 

$

886.7

 

 

$

1,371.9

 

 

$

85.6

 

 

$

766.1

 

 

$

(0.9

)

 

$

540.5

 

 

$

1,402.1

 

Year Ended December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess and Surplus Lines

 

$

36.9

 

 

$

1,165.4

 

 

$

274.9

 

 

$

485.2

 

 

$

36.7

 

 

$

248.0

 

 

$

1.9

 

 

$

159.7

 

 

$

487.8

 

Commercial Specialty

 

 

22.5

 

 

 

652.2

 

 

 

172.9

 

 

 

291.9

 

 

 

18.7

 

 

 

189.1

 

 

 

(4.3

)

 

 

107.8

 

 

 

301.1

 

International Specialty

 

 

0.8

 

 

 

306.3

 

 

 

123.9

 

 

 

148.3

 

 

 

8.2

 

 

 

77.8

 

 

 

1.7

 

 

 

52.8

 

 

 

156.6

 

Syndicate 1200

 

 

64.4

 

 

 

600.0

 

 

 

245.5

 

 

 

411.1

 

 

 

10.2

 

 

 

208.1

 

 

 

(4.7

)

 

 

172.5

 

 

 

420.8

 

Run-off Lines

 

 

—

 

 

 

318.5

 

 

 

—

 

 

 

1.6

 

 

 

9.7

 

 

 

24.4

 

 

 

—

 

 

 

8.2

 

 

 

1.6

 

Corporate and Other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3.1

 

 

 

—

 

 

 

—

 

 

 

43.6

 

 

 

—

 

Total

 

$

124.6

 

 

$

3,042.4

 

 

$

817.2

 

 

$

1,338.1

 

 

$

86.6

 

 

$

747.4

 

 

$

(5.4

)

 

$

544.6

 

 

$

1,367.9

 

Year Ended December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess and Surplus Lines

 

$

38.8

 

 

$

1,171.8

 

 

$

264.8

 

 

$

460.2

 

 

$

42.2

 

 

$

244.0

 

 

$

(1.4

)

 

$

158.6

 

 

$

478.7

 

Commercial Specialty

 

 

18.1

 

 

 

653.4

 

 

 

159.4

 

 

 

299.0

 

 

 

22.8

 

 

 

194.0

 

 

 

0.4

 

 

 

97.0

 

 

 

288.2

 

International Specialty

 

 

2.2

 

 

 

295.6

 

 

 

117.1

 

 

 

142.4

 

 

 

8.4

 

 

 

79.9

 

 

 

(1.0

)

 

 

51.1

 

 

 

155.4

 

Syndicate 1200

 

 

54.8

 

 

 

777.0

 

 

 

237.8

 

 

 

401.7

 

 

 

11.0

 

 

 

208.6

 

 

 

(13.8

)

 

 

170.0

 

 

 

428.5

 

Run-off Lines

 

 

—

 

 

 

332.5

 

 

 

—

 

 

 

0.5

 

 

 

10.8

 

 

 

15.5

 

 

 

—

 

 

 

4.6

 

 

 

0.5

 

Corporate and Other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4.8

 

 

 

—

 

 

 

—

 

 

 

45.3

 

 

 

—

 

Total

 

$

113.9

 

 

$

3,230.3

 

 

$

779.1

 

 

$

1,303.8

 

 

$

100.0

 

 

$

742.0

 

 

$

(15.8

)

 

$

526.6

 

 

$

1,351.3

 

 

(a) 

Deferred Policy Acquisition Cost

(b) 

Future Policy Benefits, Losses, Claims and Loss Expenses

(c) 

Unearned Premiums

(d) 

Premium Revenue, net (premiums earned)

(e) 

Benefits, Claims, Losses and Settlement Expenses

(f) 

Amortization (Deferral) of Deferred Policy Acquisition Costs

(g) 

Premiums Written, net

(1) 

Net Investment Income allocated based upon each segment’s share of investable funds.

(2) 

The amortization (deferral) of DAC will not equal the change in the balance sheet. See Note 1, “Business and Significant Accounting Policies” for further discussion.

(3) 

Other Insurance Expenses allocated based on specific identification, where possible, and related activities.

v3.3.1.900
Schedule V Valuation and Qualifying Accounts
 12 Months Ended
Dec. 31, 2015
Valuation And Qualifying Accounts [Abstract]  
Schedule V Valuation and Qualifying Accounts

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

SCHEDULE V

VALUATION AND QUALIFYING ACCOUNTS

(in millions)

 

 

Balance at

Beginning

of Year

 

 

Charged to

Cost and

Expense

 

 

Capital Loss

Carryforward

 

 

Net Operating

Loss

Carryforward

 

 

Charged to

Other

Accounts

 

 

Deductions

 

 

Balance at

End of Year

 

Year Ended December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deducted from assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation allowance for deferred tax asset

 

$

25.4

 

 

$

(1.0

)

 

$

—

 

 

$

—

 

 

$

(1.6

)

 

$

—

 

 

$

22.8

 

Year Ended December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deducted from assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation allowance for deferred tax asset

 

$

56.2

 

 

$

(30.7

)

 

$

—

 

 

$

—

 

 

$

(0.1

)

 

$

—

 

 

$

25.4

 

Year Ended December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deducted from assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation allowance for deferred tax asset

 

$

52.5

 

 

$

(1.0

)

 

$

—

 

 

$

—

 

 

$

4.7

 

 

$

—

 

 

$

56.2

 

 
v3.3.1.900
Schedule VI Supplemental Information for Property-Casualty Insurance Companies
 12 Months Ended
Dec. 31, 2015
Supplemental Information For Property Casualty Insurance Underwriters [Abstract]  
Schedule VI Supplemental Information for Property-Casualty Insurance Companies

ARGO GROUP INTERNATIONAL HOLDINGS, LTD.

SCHEDULE VI

SUPPLEMENTAL INFORMATION FOR PROPERTY-CASUALTY INSURANCE COMPANIES

(in millions)

 

 

 

For the Years Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Deferred acquisition costs

 

$

132.4

 

 

$

124.6

 

 

$

113.9

 

Reserves for losses and loss adjustment expenses

 

$

3,123.6

 

 

$

3,042.4

 

 

$

3,230.3

 

Unamortized discount in reserves for losses

 

$

14.9

 

 

$

17.6

 

 

$

19.5

 

Unearned premiums

 

$

886.7

 

 

$

817.2

 

 

$

779.1

 

Premiums earned

 

$

1,371.9

 

 

$

1,338.1

 

 

$

1,303.8

 

Net investment income

 

$

85.6

 

 

$

86.6

 

 

$

100.0

 

Losses and loss adjustment expenses incurred:

 

 

 

 

 

 

 

 

 

 

 

 

Current year

 

$

798.5

 

 

$

785.1

 

 

$

775.6

 

Prior years

 

 

(32.4

)

 

 

(37.7

)

 

 

(33.6

)

Losses and loss adjustment expenses incurred

 

$

766.1

 

 

$

747.4

 

 

$

742.0

 

Deferral of policy acquisition costs (1)

 

$

(0.9

)

 

$

(5.4

)

 

$

(15.8

)

Paid losses and loss adjustment expenses, net of

   reinsurance

 

$

733.5

 

 

$

736.7

 

 

$

753.5

 

Gross premiums written

 

$

2,012.1

 

 

$

1,905.4

 

 

$

1,888.4

 

 

(1) 

The amortization (deferral) of policy acquisition costs will not equal the change in the balance sheet. For further discussion, see Note 1, “Business and Significant Accounting Policies.”

v3.3.1.900
Business and Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2015
Accounting Policies [Abstract]  
Business

Business

Argo Group International Holdings, Ltd. (“Argo Group,” “we” or the “Company”) is an international underwriter of specialty insurance and reinsurance products in the property and casualty market. Argo Group US, Inc. (“Argo Group US”) is a subsidiary of Argo Financial Holding (Ireland), Ltd. (“Argo Ireland”). Argo Underwriting Agency Limited (“Syndicate 1200”) is a subsidiary of Argo International Holdings, Ltd. Argo Re, Ltd. (“Argo Re”), a Bermuda based company, is the parent of both Argo Ireland and Argo International Holdings, Ltd. Argo Re is directly owned by Argo Group.

We conduct our ongoing business through four segments.

Excess and Surplus Lines products are underwritten by Colony Insurance Company (“Colony”) under two operating platforms: Colony Specialty and Argo Pro.

Commercial Specialty consists of the following operations: Argo Insurance, Rockwood Casualty Insurance Company (“Rockwood”), Argo Surety, Trident Insurance Services, Alteris and ARIS Title Insurance Corporation (“ARIS”).

International Specialty products are provided by our Bermuda operations, which include Argo Re and Argo Insurance – Casualty and Professional Lines and Argo Seguros Brasil S.A. based in Brazil.

Syndicate 1200 products are underwritten by Argo Underwriting Agency Limited based in London, on behalf of one underwriting syndicate under the Lloyd’s of London (“Lloyd’s”) global franchise.

Our Run-off Lines segment includes liabilities associated with other liability policies that were issued in the 1960s, 1970s and into the 1980s, as well as the former risk management business and other business no longer underwritten.

Basis of Presentation and Use of Estimates

Basis of Presentation and Use of Estimates

The consolidated financial statements of Argo Group and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The major estimates reflected in our consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses; reinsurance recoverables, including the reinsurance recoverables allowance for doubtful accounts; estimates of written and earned premiums; reinsurance premium receivable; fair value of investments and assessment of potential impairment; valuation of goodwill and intangibles and our deferred tax asset valuation allowance. Actual results could differ from those estimates.

Specifically, estimates for reserves for losses and loss adjustment expenses are based upon past claim experience modified for current trends as well as prevailing economic, legal and social conditions. Although management believes that amounts included in the accompanying consolidated financial statements are reasonable, such estimates may be more or less than the amounts ultimately paid when the claims are settled. The estimates are continually reviewed and any changes are reflected in current operating results. Further, the nature of loss exposures involves significant variability due to the nature of the long-tailed payments on certain claims. As such, losses and loss adjustment expenses could vary significantly from the recorded amounts.

The consolidated financial statements include the accounts and operations of Argo Group and its subsidiaries. All material intercompany accounts and transactions have been eliminated. Certain amounts in prior years’ financial statements have been reclassified to conform to the current presentation. Amounts related to trade capital providers, who are third-party capital participants that provide underwriting capital to the Syndicate 1200 segment, are included in the balance sheet. Trade capital providers participate on a quota share basis, assuming 100% of their contractual participation in the underwriting syndicate results and with such results settled on a year of account basis.

In 2009, the Financial Accounting Standards Board (“FASB”) issued revised accounting standards regarding consolidation of variable interest entities. We reevaluated our investment in our twelve statutory trusts (collectively, the “Trusts”) and two charitable foundations (collectively, the “Foundations”). We determined that the Trusts and Foundations continue to be variable interest entities due to the fact that the Trusts and Foundations do not have sufficient equity to finance their activities without additional subordinate financial support from other parties. We do not have any power to direct the activities that impact the Trusts or Foundations’ economic performance. We are not entitled to receive a majority of the residual returns of the Trusts and U.S. charitable foundations. Additionally, we are not responsible for absorbing the majority of the expected losses of the Trusts or U.S. charitable foundations; therefore, we are not the primary beneficiary and, accordingly, the Trusts and U.S. charitable foundations are not included in our consolidated financial statements. The expenses and donations of the charitable foundations in Bermuda are paid by Argo Group and have been included in the consolidated results.

We have used a series of special purpose reinsurance companies to provide reinsurance coverage through a series of transactions, including insurance linked securities.  Under the provisions of Accounting Standards Codification (“ASC”) Topic 810-10, “Consolidation,” these reinsurance companies are variable interest entities.  However, we do not have a variable interest in these entities, and therefore are not required to consolidate them in our consolidated financial statements.
10% Stock Dividend

Stock Dividends

On May 7, 2013, our Board of Directors declared a 10% stock dividend, payable on June 17, 2013, to shareholders of record at the close of business on June 3, 2013. As a result of the stock dividend, 2,447,839 additional shares were issued. Cash was paid in lieu of fractional shares of our common shares. All references to share and per share amounts in this document and related disclosures have been adjusted to reflect the stock dividend for all periods presented.

On February 17, 2015, our Board of Directors declared a 10% stock dividend, payable on March 16, 2015, to shareholders of record at the close of business on March 2, 2015. As a result of the stock dividend, 2,554,506 additional shares were issued. Cash was paid in lieu of fractional shares of our common shares. All references to share and per share amounts in this document and related disclosures have been adjusted to reflect the stock dividend for all periods presented
Cash

Cash

Cash consists of cash deposited in banks, generally in concentration and operating accounts. Interest-bearing cash accounts are classified as short-term investments.

Investments

Investments

Investments in fixed maturities at December 31, 2015 and 2014 include bonds and structured securities. Equity securities include common stocks, preferred stocks and mutual funds. Other investments consist of foreign regulatory deposits, hedge funds, private equity funds, private equity direct investments, voluntary pools and foreign exchange currency forward contracts. Short-term investments consist of money market funds, certificates of deposit, bonds, sovereign debt and interest-bearing cash accounts. Investments maturing in less than one year are classified as short-term investments in our consolidated financial statements.

The amortized cost of fixed maturity securities is adjusted for amortization of premiums and accretion of discounts. This amortization or accretion is included in “Net investment income” in our Consolidated Statements of Income.

For the structured securities portion of the fixed maturity securities portfolio, we recognize income using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. Premium or discount on high investment grade securities (rated AA or higher) is amortized into income using the retrospective method. Premium or discount on lower grade securities (rated less than AA) is amortized into income using the prospective method.

Our investments in fixed maturities and equity securities with readily determinable fair value are considered available-for-sale and are carried at fair value. Changes in the fair value of investments classified as available-for-sale are not recognized to income during the period, but rather are recognized as a separate component of shareholders’ equity until realized. Fair value of these investments is estimated using prices obtained from third-party pricing services, where available. For securities where we were unable to obtain fair values from a pricing service or broker, fair values were estimated using information obtained from investment advisors. We performed several processes to ascertain the reasonableness of these investment values by i) obtaining and reviewing internal control reports for our service providers that obtain fair values from third-party pricing services, ii) discussing with our investment managers their process for reviewing and validating pricing obtained from outside services and obtaining values for all securities from our investment managers and iii) comparing the security pricing received from the investment managers with the prices used in the consolidated financial statements and obtaining additional information for variances that exceeded a certain threshold. As of December 31, 2015, investments we hold for which we did not receive a fair value from a pricing service or broker accounted for less than 1% of our investment portfolio. The actual value at which these securities could actually be sold or settled with a willing buyer or seller may differ from our estimated fair values depending on a number of factors including, but not limited to, current and future economic conditions, quantity sold or settled, presence of an active market and availability of a willing buyer or seller. The cost of securities sold is based on the specific identification method.

Changes in the value of other investments consisting of hedge funds, private equity funds, private equity direct investments and voluntary pools are principally recognized to income during the period using the equity method of accounting. Our foreign regulatory deposits are assets held in trust in jurisdictions where there is a legal and regulatory requirement to maintain funds locally in order to protect policyholders. Lloyd’s is the appointed investment manager for the funds. The underlying assets are invested in government securities, agency securities and corporate bonds whose values are obtained from Lloyd’s. Foreign currency future contracts held by us are valued by our counterparties using market driven foreign currency exchange rates.

We regularly evaluate our investments for other-than-temporary impairment. For fixed maturity securities, the evaluation for a credit loss is generally based on the present value of expected cash flows of the security as compared to the amortized book value. For structured securities, frequency and severity of loss inputs are used in projecting future cash flows of the securities. Loss frequency is measured as the credit default rate, which includes such factors as loan-to-value ratios and credit scores of borrowers. Loss severity includes such factors as trends in real estate values and proceeds at foreclosure. We also recognize other-than-temporary losses on our fixed maturity securities that we intend to sell.

All investment balances include amounts relating to trade capital providers. The results of operations and other comprehensive income exclude amounts relating to trade capital providers. Trade capital providers’ participation in the syndicate results are included in reinsurance recoverable for ceded losses and reinsurance payable for ceded premiums.

Receivables

Receivables

Premiums receivable, representing amounts due from insureds, are presented net of an allowance for doubtful accounts. The allowances for doubtful accounts were $3.5 million and $5.2 million at December 31, 2015 and 2014, respectively. Premiums receivable include amounts relating to the trade capital providers’ quota share.

Reinsurance recoverables represent amounts of paid losses and loss adjustment expenses, case reserves and incurred but not reported (“IBNR”) amounts ceded to reinsurers under reinsurance treaties. Reinsurance recoverables also reflect amounts that are due from trade capital providers. Reinsurance recoverables are presented in our Consolidated Balance Sheets net of an allowance for doubtful accounts of $3.2 million and $3.4 million at December 31, 2015 and 2014, respectively (see Note 3, “Reinsurance” for related disclosures).

An estimate of amounts that are likely to be charged off is established as an allowance for doubtful accounts as of the balance sheet date. Our estimate includes specific insured and reinsurance balances that are considered probable to be charged off after all collection efforts have ceased and in accordance with historical write-off trends based on aging categories. Premiums receivable and reinsurance recoverables on paid losses written off, net of recoveries against the allowance for doubtful accounts or directly to the income statement are as follows:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Premiums receivable

 

$

1.0

 

 

$

1.1

 

 

$

0.2

 

Reinsurance recoverables

 

 

0.2

 

 

 

0.5

 

 

 

—

 

Net written off (recovered)

 

$

1.2

 

 

$

1.6

 

 

$

0.2

 

 

Recoveries occur when subsequent collection or litigation results in the receipt of amounts previously written off. Amounts recovered are applied against the bad debt expense account.

Earned Premiums

Earned Premiums

Premium revenue is recognized ratably over the policy period. Premiums that have yet to be earned are reported as “Unearned premiums” in our Consolidated Balance Sheets.

Unearned premium balances include cessions to reinsurers including trade capital providers, while the earned premium recognized in our Consolidated Statements of Income excludes amounts relating to trade capital providers. The trade capital providers’ quota share amount is included in “Ceded reinsurance payable, net”.

Assumed reinstatement premiums that reinstate coverage are written and earned at the time the associated loss event occurs. The original premium is earned over the remaining exposure period of the contract. Reinstatement premiums are estimated based upon contract terms for reported losses and estimated for incurred but not reported losses.

Retrospectively Rated Policies

Retrospectively Rated Policies

We have written a number of workers compensation, property and other liability policies that are retrospectively rated. Under this type of policy, the policyholder or coverholder may be entitled, subsequent to coverage expiration, to a refund or may owe additional premiums based on the amount of losses incurred under the policy. The retrospective premium adjustments on certain policies are limited to a minimum or maximum premium adjustment, which is calculated as a percentage of the standard amount of premium charged during the life of the policy. Accrued retrospectively rated premiums have been determined based on estimated ultimate loss experience of the individual policyholder accounts. The estimated liability for return of premiums under retrospectively rated policies is included in “Unearned premiums” in our Consolidated Balance Sheets and was $6.5 million and $5.8 million at December 31, 2015 and 2014, respectively.  The estimated amount included in premiums receivables for additional premiums due under retrospectively rated policies was $0.1 million at December 31, 2015. No amount was included in premiums receivables for additional premium due under retrospectively rate policies at December 31, 2014.
Deferred Acquisition Costs

Deferred Acquisition Costs

Policy acquisition costs, which include commissions, premium taxes, fees and certain other costs of underwriting policies, are deferred, when such policies are profitable, and amortized over the same period in which the related premiums are earned. To qualify for capitalization, the policy acquisition cost must be directly related to the successful acquisition of an insurance contract. Anticipated investment income is considered in determining whether the deferred acquisition costs are recoverable and whether a premium deficiency exists. We continually review the methods of making such estimates and establishing the deferred costs with any adjustments made in the accounting period in which the adjustment arose.

The 2015 and 2014 net amortization of policy acquisition costs will not equal the change in our Consolidated Balance Sheets as the trade capital providers’ share is not reflected in our Consolidated Statements of Income and differences arise from foreign currency exchange rates applied to deferred acquisition costs which are treated as a nonmonetary asset.

Reserves for Losses and Loss Adjustment Expenses

Reserves for Losses and Loss Adjustment Expenses

Liabilities for unpaid losses and loss adjustment expenses include the accumulation of individual case estimates for claims reported as well as estimates of IBNR claims and estimates of claim settlement expenses. Reinsurance recoverables on unpaid claims and claim expenses represent estimates of the portion of such liabilities that will be recoverable from reinsurers. Amounts recoverable from reinsurers are recognized as assets at the same time and in a manner consistent with the unpaid claims liabilities associated with the reinsurance policy.

Reinsurance

Reinsurance

In the normal course of business, our insurance and reinsurance subsidiaries reinsure various risks above certain retention levels with other insurance enterprises. Reinsurance recoverables include claims we paid and estimates of unpaid losses and loss adjustment expenses that are subject to reimbursement under reinsurance and retrocessional contracts. The method for determining reinsurance recoverables for unpaid losses and loss adjustment expenses involves reviewing actuarial estimates of gross unpaid losses and loss adjustment expenses to determine our ability to cede unpaid losses and loss adjustment expenses under our existing reinsurance contracts. This method is continually reviewed and updated and any resulting adjustments are reflected in earnings in the period identified. Reinsurance premiums, commissions and expense reimbursements are accounted for on a basis consistent with those used in accounting for the original policies issued and the term of the reinsurance contracts. Amounts recoverable from reinsurers for losses and loss adjustment expenses for which our insurance and reinsurance subsidiaries have not been relieved of their legal obligations to the policyholder are reported as assets.

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill and intangible assets are allocated to the segment in which the results of operations for the acquired company are reported (see Note 18, “Segment Information” for further discussion). Intangible assets with a finite life are amortized over the estimated useful life of the asset. Goodwill and intangible assets with an indefinite useful life are not amortized. Goodwill and intangible assets are tested for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. For goodwill, we may perform a qualitative test to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment test. Based on prior goodwill impairment testing, we determined the performance of the quantitative impairment test was required for 2015. The first step of the quantitative test is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill (“Step 1”). If the fair value of a reporting unit exceeds its carrying value amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step is not necessary. However, if the carrying amount of the reporting unit exceeds its fair value, the second step (“Step 2”) is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. Step 2 compares the implied fair value of goodwill with the carrying amount of goodwill. If the implied value of goodwill is less than the carrying amount of goodwill, it is written down to its fair value with a corresponding expense reflected in the Consolidated Statements of Income. The implied goodwill is calculated based on a hypothetical purchase price allocation, similar to the requirements in the accounting guidance for business combinations, whereby the implied fair value of the reporting unit is allocated to the fair value of the assets and liabilities of the reporting unit.

We perform our goodwill impairment test on the first day of the fourth quarter of each year, or October 1 of each year. In performing Step 1 of the impairment test, we estimated the fair value of reporting units using an average of three valuation methods: a comparable company analysis, a precedent transaction analysis and a discounted cash flow analysis. All three methods require management to make various judgments and assumptions. The discounted cash flow analysis included projections of earned premiums, loss ratios, expense growth and discount rates for each reporting unit. Assumptions about such future cash flows are based on our budgets, business plans, economic projections, anticipated future cash flows and market data. Finally, the comparable company analysis and precedent transaction analysis required judgment in selecting comparable companies and comparable transactions for use in the calculations. In all instances, future changes in these judgments and assumptions could cause impairment of goodwill.

For the years ended December 31, 2015, 2014 and 2013, all of our reporting units passed Step 1 of the goodwill impairment analysis as the fair value of each reporting unit were in excess of their carrying values.  Therefore, Step 2 of the goodwill impairment analysis was not required. Any future decline in the fair value of these reporting units could result in the carrying value of the reporting unit being in excess of fair value, triggering Step 2 of the impairment testing model, which could result in an impairment of goodwill.

For the year ended December 31, 2014, we determined as a result of the slower than anticipated development of revenues for our art title insurance company, the likelihood of near term recovery of the intangible assets, including goodwill, was not probable. Therefore, we wrote-off $1.6 million of goodwill and $1.8 million of indefinite lived intangible assets related to this operating unit.

As noted above, we have elected to make the first day of the fourth quarter the annual impairment assessment date for goodwill and indefinite-lived intangible assets. An impairment analysis subsequent to this date has not been performed as management believes that no additional indicators of impairment have arisen, such as significant additional pricing competition, unexpected significant declines in operating results, divestiture of a significant component of the business or a significant decline in our market capitalization.

The following table presents our intangible assets and accumulated amortization at December 31:

 

 

 

December 31, 2015

 

 

December 31, 2014

 

(in millions)

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

Lloyd's capacity

 

$

60.5

 

 

n/a

 

 

$

60.5

 

 

n/a

 

Distribution network

 

 

45.5

 

 

 

33.2

 

 

 

44.8

 

 

 

27.9

 

Additional Lloyd's capacity

 

 

4.8

 

 

 

4.6

 

 

 

4.8

 

 

 

3.9

 

Other

 

 

1.6

 

 

 

1.3

 

 

 

1.5

 

 

 

1.2

 

 

 

$

112.4

 

 

$

39.1

 

 

$

111.6

 

 

$

33.0

 

 

The weighted average useful life by category at December 31, 2015 was 9.3 years for the distribution network, 5.0 years for the additional Lloyd’s capacity and 9.1 years for other. The weighted average useful life for all categories was 8.9 years at December 31, 2015.

During the twelve months ended December 31, 2015, 2014 and 2013, amortization expense was $7.5 million, $5.6 million and $6.1 million, respectively, and is included in “Underwriting, acquisition and insurance expenses” in our Consolidated Statements of Income.

The estimated amortization expense for the years ended December 31, 2016, 2017, 2018, 2019 and 2020 is $5.6 million, $4.8 million, $2.2 million, $0.4 million and $0.0 million, respectively.

Property and Equipment

Property and Equipment

Property and equipment used in operations, including certain costs incurred to develop or obtain computer software for internal use, are capitalized and carried at cost less accumulated depreciation and are reported in “Other assets” in our Consolidated Balance Sheets. Depreciation is calculated using a straight-line method over the estimated useful lives of the assets, generally three to thirty nine years. The accumulated depreciation for property and equipment was $85.1 million and $78.2 million at December 31, 2015 and 2014, respectively. The net book value of our property and equipment at December 31, 2015 and 2014 was $133.1 million and $96.4 million, respectively. The depreciation expense at December 31, 2015, 2014 and 2013 was $17.5 million, $15.1 million and $15.5 million, respectively.

Derivative Instruments

Derivative Instruments

We enter into short-term, currency spot and forward contracts to mitigate foreign exchange rate exposure in our non-U.S. Dollar denominated fixed maturity investments. The forward contracts used are typically less than sixty days and are renewed as long as the non-U.S. Dollar denominated fixed maturity investments are held in our portfolio. Forward contracts are designated as hedges for accounting purposes. We also enter into foreign currency exchange forward contracts to manage currency exposure on losses related to global catastrophe events. These foreign currency forward contracts are carried at fair value in our Consolidated Balance Sheets in “Other investments.” The realized and unrealized gains and losses are included in “Net realized investment and other gains” in our Consolidated Statements of Income.

Through our subsidiary Argo Re, in December 2011, we entered into a reinsurance contract with a special purpose reinsurance company that provided us with protection against certain severe catastrophe events and the occurrence of multiple significant catastrophe events during the same year. The special purpose reinsurance company provided the reinsurance through a catastrophe bond transaction that was supported by a collateralized facility. The reinsurance contract was deemed to be a derivative. We recorded the contract at fair value, with any changes in the value reflected in “Other reinsurance-related expenses” in our Consolidated Statements of Income. See Note 4, “Derivative Instruments” for related disclosures.

Share-Based Payments

Share-Based Payments

Compensation expense for share-based payments is recognized based on the measurement-date fair value for awards that will settle in shares. Awards that are expected to be settled in cash are accounted for as liability awards, resulting in the fair value of the award being measured at each reporting date until the award is exercised, forfeited or expires unexercised. Compensation expense for awards that are settled in equity are recognized on a straight line pro rata basis over the vesting period. Compensation expense for awards that are settled in cash are recognized on the accelerated recognition method over the award’s vesting period. See Note 12, “Share-based Compensation” for related disclosures.

Foreign Currency Exchange Gain (Loss)

Foreign Currency Exchange Gain (Loss)

The U.S. Dollar is the functional currency of all but two of our foreign operations. Monetary assets and liabilities in foreign operations that are denominated in foreign currencies are revalued at the exchange rates in effect at the balance sheet date. The resulting gains and losses from changes in the foreign exchange rates are reflected in net income. Revenues and expenses denominated in foreign currencies are translated at the prevailing exchange rate during the period with the resulting foreign exchange gains and losses included in net income for the period. In the case of our foreign currency denominated available-for-sale investments, the change in exchange rates between the local currency and our functional currency at each balance sheet date represents an unrealized appreciation or depreciation in value of these securities and is included as a component of accumulated other comprehensive gain.

Translation gains and losses related to our operations in Brazil and Malta are recorded as a component of shareholders’ equity in our Consolidated Balance Sheets. At December 31, 2015 and 2014, the foreign currency translation adjustments were a loss of $21.6 million and $15.6 million, respectively.

Income Taxes

Income Taxes

Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in net income in the period in which the change is enacted.

We recognize potential accrued interest and penalties within our global operations in “Interest expense” and “Underwriting, acquisition and insurance expenses,” respectively, in our Consolidated Statements of Income.

Supplemental Cash Flow Information

Supplemental Cash Flow Information

Income taxes paid. We paid income taxes of $10.9 million, $23.7 million and $14.2 million in 2015, 2014 and 2013, respectively.

Income taxes recovered. We recovered income taxes of $11.7 million and $0.1 million in 2015 and 2014, respectively. We did not recover any income taxes in 2013.

Interest paid as follows:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Senior unsecured fixed rate notes

 

$

9.3

 

 

$

9.3

 

 

$

9.3

 

Junior subordinated debentures

 

 

7.0

 

 

 

7.6

 

 

 

7.9

 

Other indebtedness

 

 

2.4

 

 

 

2.8

 

 

 

2.6

 

Total interest paid

 

$

18.7

 

 

$

19.7

 

 

$

19.8

 

 

Non-cash operating activities transactions. Our Consolidated Statements of Cash Flows contains a reconciliation of net income to “Net cash (used) provided by operating activities,” which includes, among other things, certain adjustments for non-cash items. For the year ended December 31, 2014, the adjustment for “Net realized and other gains” includes a $43.3 million non-cash item related to the pre-tax realized gain recognized on the sale of a real estate holding, as the proceeds from this sale were held in escrow and recorded as a receivable within “Other assets” in our Consolidated Balance Sheet at December 31, 2014.
Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (Topic 606). The ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The ASU provides a five-step analysis of transactions to determine when and how revenue is recognized and requires additional disclosures sufficient to describe the nature, amount, timing and uncertainty of revenue and cash flows for these transactions. The original effective date of this ASU was deferred by one year by the FASB’s August 2015 issuance of ASU 2015-14, “Deferral of the Effective Date” (Topic 606), with the new effective date being for annual reporting periods beginning after December 15, 2017, with early adoption permitted as early as annual reporting periods beginning after December 15, 2016. We will adopt this ASU on January 1, 2018. Companies may use either a “full retrospective” adoption, meaning the update is applied to all periods presented, or a “modified retrospective” adoption, meaning the update is applied only to the most current period presented in the financial statements. While insurance contracts are excluded from this ASU, fee income related to our brokerage operations and management of the third-party capital for our underwriting Syndicate at Lloyd’s will be subject to this updated guidance. We continue to evaluate what impact this ASU will have on our financial results and disclosures and which adoption method to apply, but do not anticipate such impact being material based on the limited revenue streams subject to the ASU.

In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis" (Topic 810). ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether entities should be consolidated if they are deemed variable interest entities. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. We have adopted this standard as of the effective date, and the adoption did not impact our financial statements.

In May 2015, the FASB issued ASU 2015-09, “Disclosures about Short-Duration Contracts” (Topic 944). ASU 2015-09 focuses on the requirement of additional disclosures for unpaid claim liabilities and claim adjustment expenses for short-duration insurance contracts (i.e., coverage provided for a fixed period of short duration, typically a year or less).  The standard will require tables showing incurred and paid claims development information by accident year for the number of years claims typically remain outstanding, but not more than 10 years, including a reconciliation of this information to the statement of financial position. This ASU is effective for annual periods beginning after December 15, 2015 and interim periods within annual periods after December 15, 2016. We are currently in the process of evaluating the impact of the adoption of ASU 2015-09 on our financial disclosures.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (Subtopic 825-10). The ASU will require equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income. This ASU will also require us to assess the realizability of any deferred tax assets (“DTAs”) related to an available-for-sale debt security in combination with our other DTAs. The ASU will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently in the process of evaluating the impact of the adoption of ASU 2016-01 on our financial results and disclosures.

 
v3.3.1.900
Business and Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2015
Accounting Policies [Abstract]  
Summary of Receivables

Premiums receivable and reinsurance recoverables on paid losses written off, net of recoveries against the allowance for doubtful accounts or directly to the income statement are as follows:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Premiums receivable

 

$

1.0

 

 

$

1.1

 

 

$

0.2

 

Reinsurance recoverables

 

 

0.2

 

 

 

0.5

 

 

 

—

 

Net written off (recovered)

 

$

1.2

 

 

$

1.6

 

 

$

0.2

 

 
Intangible Assets And Accumulated Amortization

The following table presents our intangible assets and accumulated amortization at December 31:

 

 

 

December 31, 2015

 

 

December 31, 2014

 

(in millions)

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

Lloyd's capacity

 

$

60.5

 

 

n/a

 

 

$

60.5

 

 

n/a

 

Distribution network

 

 

45.5

 

 

 

33.2

 

 

 

44.8

 

 

 

27.9

 

Additional Lloyd's capacity

 

 

4.8

 

 

 

4.6

 

 

 

4.8

 

 

 

3.9

 

Other

 

 

1.6

 

 

 

1.3

 

 

 

1.5

 

 

 

1.2

 

 

 

$

112.4

 

 

$

39.1

 

 

$

111.6

 

 

$

33.0

 

 
Supplemental Cash Flow Information

Interest paid as follows:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Senior unsecured fixed rate notes

 

$

9.3

 

 

$

9.3

 

 

$

9.3

 

Junior subordinated debentures

 

 

7.0

 

 

 

7.6

 

 

 

7.9

 

Other indebtedness

 

 

2.4

 

 

 

2.8

 

 

 

2.6

 

Total interest paid

 

$

18.7

 

 

$

19.7

 

 

$

19.8

 

 
v3.3.1.900
Investments (Tables)
 12 Months Ended
Dec. 31, 2015
Investments Debt And Equity Securities [Abstract]  
Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investments as of December 31 were as follows:

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments

 

$

207.9

 

 

$

0.7

 

 

$

0.7

 

 

$

207.9

 

Non-U.S. Governments

 

 

92.9

 

 

 

—

 

 

 

1.2

 

 

 

91.7

 

Obligations of states and political subdivisions

 

 

467.6

 

 

 

20.7

 

 

 

0.3

 

 

 

488.0

 

Credit-Financial

 

 

533.3

 

 

 

6.1

 

 

 

3.5

 

 

 

535.9

 

Credit-Industrial

 

 

524.2

 

 

 

5.4

 

 

 

11.7

 

 

 

517.9

 

Credit-Utility

 

 

168.7

 

 

 

0.9

 

 

 

13.4

 

 

 

156.2

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency (1)

 

 

126.5

 

 

 

5.0

 

 

 

0.5

 

 

 

131.0

 

CMO/MBS-non agency

 

 

11.0

 

 

 

0.6

 

 

 

0.1

 

 

 

11.5

 

CMBS (2)

 

 

182.2

 

 

 

0.5

 

 

 

1.5

 

 

 

181.2

 

ABS (3)

 

 

111.4

 

 

 

0.2

 

 

 

0.7

 

 

 

110.9

 

CLO (4)

 

 

137.1

 

 

 

0.2

 

 

 

1.7

 

 

 

135.6

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

170.0

 

 

 

0.8

 

 

 

19.6

 

 

 

151.2

 

Credit

 

 

129.1

 

 

 

1.2

 

 

 

20.2

 

 

 

110.1

 

ABS/CMBS

 

 

24.1

 

 

 

0.1

 

 

 

2.3

 

 

 

21.9

 

CLO

 

 

85.0

 

 

 

0.7

 

 

 

9.4

 

 

 

76.3

 

Total fixed maturities

 

 

2,971.0

 

 

 

43.1

 

 

 

86.8

 

 

 

2,927.3

 

Equity securities

 

 

349.7

 

 

 

131.5

 

 

 

17.3

 

 

 

463.9

 

Other investments

 

 

499.6

 

 

 

15.0

 

 

 

0.9

 

 

 

513.7

 

Short-term investments

 

 

211.2

 

 

 

—

 

 

 

0.4

 

 

 

210.8

 

Total investments

 

$

4,031.5

 

 

$

189.6

 

 

$

105.4

 

 

$

4,115.7

 

 

(1) 

Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”).

(2) 

Commercial mortgage-backed securities (“CMBS”).

(3) 

Asset-backed securities (“ABS”).

(4)

Collateralized loan obligations (“CLO”)

 

December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments

 

$

184.0

 

 

$

1.3

 

 

$

0.3

 

 

$

185.0

 

Non-U.S. Governments

 

 

79.9

 

 

 

0.6

 

 

 

0.6

 

 

 

79.9

 

Obligations of states and political subdivisions

 

 

468.1

 

 

 

22.9

 

 

 

0.3

 

 

 

490.7

 

Credit-Financial

 

 

508.1

 

 

 

12.3

 

 

 

2.3

 

 

 

518.1

 

Credit-Industrial

 

 

493.7

 

 

 

9.4

 

 

 

3.5

 

 

 

499.6

 

Credit-Utility

 

 

142.7

 

 

 

3.2

 

 

 

3.9

 

 

 

142.0

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency (1)

 

 

168.0

 

 

 

8.0

 

 

 

0.7

 

 

 

175.3

 

CMO/MBS-non agency

 

 

13.2

 

 

 

0.8

 

 

 

—

 

 

 

14.0

 

CMBS (2)

 

 

178.6

 

 

 

1.6

 

 

 

0.2

 

 

 

180.0

 

ABS (3)

 

 

142.7

 

 

 

0.4

 

 

 

0.5

 

 

 

142.6

 

CLO (4)

 

 

78.7

 

 

 

0.2

 

 

 

0.5

 

 

 

78.4

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

148.4

 

 

 

1.2

 

 

 

9.4

 

 

 

140.2

 

Credit

 

 

136.7

 

 

 

1.8

 

 

 

12.5

 

 

 

126.0

 

ABS/CMBS

 

 

29.5

 

 

 

0.2

 

 

 

2.5

 

 

 

27.2

 

CLO

 

 

44.9

 

 

 

0.7

 

 

 

3.9

 

 

 

41.7

 

Total fixed maturities

 

 

2,817.2

 

 

 

64.6

 

 

 

41.1

 

 

 

2,840.7

 

Equity securities

 

 

324.8

 

 

 

184.1

 

 

 

5.1

 

 

 

503.8

 

Other investments

 

 

488.9

 

 

 

7.5

 

 

 

1.3

 

 

 

495.1

 

Short-term investments

 

 

258.3

 

 

 

—

 

 

 

—

 

 

 

258.3

 

Total investments

 

$

3,889.2

 

 

$

256.2

 

 

$

47.5

 

 

$

4,097.9

 

 

(1) 

Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”).

(2) 

Commercial mortgage-backed securities (“CMBS”).

(3) 

Asset-backed securities (“ABS”).

(4)

Collateralized loan obligations (“CLO”)
Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity

The amortized cost and fair values of fixed maturity investments as of December 31, 2015, by contractual maturity, were as follows:

 

(in millions)

 

Amortized

Cost

 

 

Fair

Value

 

Due in one year or less

 

$

239.5

 

 

$

226.5

 

Due after one year through five years

 

 

1,394.6

 

 

 

1,373.5

 

Due after five years through ten years

 

 

481.2

 

 

 

475.7

 

Thereafter

 

 

178.4

 

 

 

183.2

 

Structured securities

 

 

677.3

 

 

 

668.4

 

Total

 

$

2,971.0

 

 

$

2,927.3

 

 
Schedule Of Carrying Value Redemption Characteristics And Unfunded Investment Commitments Of Other Invested Assets Portfolio

 

Details regarding the carrying value, redemption characteristics and unfunded investment commitments of the other invested assets portfolio as of December 31, 2015 and 2014 were as follows:

 

December 31, 2015

 

 

 

 

 

 

 

 

(in millions)

 

Carrying

Value

 

 

Unfunded

Commitments

 

Investment Type

 

 

 

 

 

 

 

 

Hedge funds

 

$

146.9

 

 

$

—

 

Private equity

 

 

144.1

 

 

 

90.2

 

Long only funds

 

 

200.0

 

 

 

—

 

Other investments

 

 

22.7

 

 

 

—

 

Total other invested assets

 

$

513.7

 

 

$

90.2

 

 

 December 31, 2014

 

 

 

 

 

 

 

 

(in millions)

 

Carrying

Value

 

 

Unfunded

Commitments

 

Investment Type

 

 

 

 

 

 

 

 

Hedge funds

 

$

153.2

 

 

$

—

 

Private equity

 

 

123.6

 

 

 

72.9

 

Long only funds

 

 

200.7

 

 

 

—

 

Other investments

 

 

17.6

 

 

 

—

 

Total other invested assets

 

$

495.1

 

 

$

72.9

 

      

Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments

An aging of unrealized losses on our investments in fixed maturities, equity securities, other investments and short-term investments is presented below:

 

December 31, 2015

 

Less Than One Year

 

 

One Year or Greater

 

 

Total

 

(in millions)

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments (2)

 

$

138.3

 

 

$

0.7

 

 

$

0.4

 

 

$

—

 

 

$

138.7

 

 

$

0.7

 

Non-U.S. Governments (2)

 

 

80.2

 

 

 

1.2

 

 

 

2.2

 

 

 

—

 

 

 

82.4

 

 

 

1.2

 

Obligations of states and political

   subdivisions (1)

 

 

9.3

 

 

 

—

 

 

 

8.8

 

 

 

0.3

 

 

 

18.1

 

 

 

0.3

 

Credit-Financial

 

 

308.7

 

 

 

3.0

 

 

 

32.2

 

 

 

0.5

 

 

 

340.9

 

 

 

3.5

 

Credit-Industrial

 

 

320.4

 

 

 

9.6

 

 

 

28.7

 

 

 

2.1

 

 

 

349.1

 

 

 

11.7

 

Credit-Utility

 

 

111.6

 

 

 

8.5

 

 

 

16.4

 

 

 

4.9

 

 

 

128.0

 

 

 

13.4

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency

 

 

26.9

 

 

 

0.2

 

 

 

8.4

 

 

 

0.3

 

 

 

35.3

 

 

 

0.5

 

CMO/MBS-non agency

 

 

7.0

 

 

 

0.1

 

 

 

—

 

 

 

—

 

 

 

7.0

 

 

 

0.1

 

CMBS (2)

 

 

126.3

 

 

 

1.5

 

 

 

3.0

 

 

 

—

 

 

 

129.3

 

 

 

1.5

 

ABS

 

 

91.8

 

 

 

0.4

 

 

 

6.8

 

 

 

0.3

 

 

 

98.6

 

 

 

0.7

 

CLO

 

 

103.5

 

 

 

1.4

 

 

 

12.5

 

 

 

0.3

 

 

 

116.0

 

 

 

1.7

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

137.1

 

 

 

19.5

 

 

 

0.3

 

 

 

0.1

 

 

 

137.4

 

 

 

19.6

 

Credit

 

 

104.3

 

 

 

20.0

 

 

 

0.5

 

 

 

0.2

 

 

 

104.8

 

 

 

20.2

 

ABS/CMBS (2)

 

 

20.8

 

 

 

2.3

 

 

 

0.1

 

 

 

—

 

 

 

20.9

 

 

 

2.3

 

CLO

 

 

75.5

 

 

 

9.2

 

 

 

0.5

 

 

 

0.2

 

 

 

76.0

 

 

 

9.4

 

Total fixed maturities

 

 

1,661.7

 

 

 

77.6

 

 

 

120.8

 

 

 

9.2

 

 

 

1,782.5

 

 

 

86.8

 

Equity securities

 

 

112.4

 

 

 

17.3

 

 

 

—

 

 

 

—

 

 

 

112.4

 

 

 

17.3

 

Other investments

 

 

(0.5

)

 

 

0.9

 

 

 

—

 

 

 

—

 

 

 

(0.5

)

 

 

0.9

 

Short-term investments

 

 

5.8

 

 

 

0.4

 

 

 

—

 

 

 

—

 

 

 

5.8

 

 

 

0.4

 

Total

 

$

1,779.4

 

 

$

96.2

 

 

$

120.8

 

 

$

9.2

 

 

$

1,900.2

 

 

$

105.4

 

 

December 31, 2014

 

Less Than One Year

 

 

One Year or Greater

 

 

Total

 

(in millions)

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments

 

$

55.0

 

 

$

0.2

 

 

$

15.7

 

 

$

0.1

 

 

$

70.7

 

 

$

0.3

 

Non-U.S. Governments

 

 

36.5

 

 

 

0.4

 

 

 

5.2

 

 

 

0.2

 

 

 

41.7

 

 

 

0.6

 

Obligations of states and political

   subdivisions

 

 

10.4

 

 

 

0.1

 

 

 

16.6

 

 

 

0.2

 

 

 

27.0

 

 

 

0.3

 

Credit-Financial

 

 

195.7

 

 

 

2.2

 

 

 

11.1

 

 

 

0.1

 

 

 

206.8

 

 

 

2.3

 

Credit-Industrial

 

 

240.8

 

 

 

3.3

 

 

 

12.2

 

 

 

0.2

 

 

 

253.0

 

 

 

3.5

 

Credit-Utility

 

 

63.1

 

 

 

3.8

 

 

 

1.9

 

 

 

0.1

 

 

 

65.0

 

 

 

3.9

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency

 

 

10.1

 

 

 

0.1

 

 

 

19.2

 

 

 

0.6

 

 

 

29.3

 

 

 

0.7

 

CMBS

 

 

49.3

 

 

 

0.1

 

 

 

6.0

 

 

 

0.1

 

 

 

55.3

 

 

 

0.2

 

ABS

 

 

68.8

 

 

 

0.2

 

 

 

8.1

 

 

 

0.3

 

 

 

76.9

 

 

 

0.5

 

CLO

 

 

60.4

 

 

 

0.5

 

 

 

—

 

 

 

—

 

 

 

60.4

 

 

 

0.5

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

123.7

 

 

 

9.3

 

 

 

11.2

 

 

 

0.1

 

 

 

134.9

 

 

 

9.4

 

Credit

 

 

122.3

 

 

 

12.3

 

 

 

0.9

 

 

 

0.2

 

 

 

123.2

 

 

 

12.5

 

ABS/CMBS

 

 

26.8

 

 

 

2.5

 

 

 

—

 

 

 

—

 

 

 

26.8

 

 

 

2.5

 

CLO

 

 

41.7

 

 

 

3.9

 

 

 

—

 

 

 

—

 

 

 

41.7

 

 

 

3.9

 

Total fixed maturities

 

 

1,104.6

 

 

 

38.9

 

 

 

108.1

 

 

 

2.2

 

 

 

1,212.7

 

 

 

41.1

 

Equity securities

 

 

53.6

 

 

 

5.1

 

 

 

—

 

 

 

—

 

 

 

53.6

 

 

 

5.1

 

Other investments

 

 

(0.9

)

 

 

1.3

 

 

 

—

 

 

 

—

 

 

 

(0.9

)

 

 

1.3

 

Short-term investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

1,157.3

 

 

$

45.3

 

 

$

108.1

 

 

$

2.2

 

 

$

1,265.4

 

 

$

47.5

 

 

(1) 

Unrealized losses less than one year are less than $0.1 million.

(2) 

Unrealized losses one year or greater are less than $0.1 million.

Schedule of Investment Income and Expenses

Investment income and expenses were as follows:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividends on fixed maturities

 

$

78.2

 

 

$

76.3

 

 

$

87.7

 

Dividends on equity securities

 

 

16.3

 

 

 

15.8

 

 

 

17.7

 

Interest on short-term and other investments

 

 

7.2

 

 

 

5.3

 

 

 

5.0

 

Other

 

 

—

 

 

 

4.2

 

 

 

3.7

 

Investment income

 

 

101.7

 

 

 

101.6

 

 

 

114.1

 

Investment expenses

 

 

(16.1

)

 

 

(15.0

)

 

 

(14.1

)

Net investment income

 

$

85.6

 

 

$

86.6

 

 

$

100.0

 

 
Schedule of Company's Gross Realized Investment Gains (Losses)

 The following table presents our gross realized investment gains (losses) and other:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Realized gains

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities

 

$

12.3

 

 

$

17.0

 

 

$

33.5

 

Equity securities

 

 

40.5

 

 

 

29.2

 

 

 

59.1

 

Other investments

 

 

59.3

 

 

 

44.8

 

 

 

38.9

 

Short-term investments

 

 

1.2

 

 

 

0.1

 

 

 

0.1

 

Other assets

 

 

—

 

 

 

2.0

 

 

 

—

 

Gain on sale of real estate holdings

 

 

0.3

 

 

 

43.3

 

 

 

—

 

Gross realized investment gains and other

 

 

113.6

 

 

 

136.4

 

 

 

131.6

 

Realized losses

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities

 

 

(23.5

)

 

 

(12.2

)

 

 

(19.6

)

Equity securities

 

 

(6.6

)

 

 

(0.6

)

 

 

(1.4

)

Other investments

 

 

(42.7

)

 

 

(21.8

)

 

 

(30.8

)

Short-term investments

 

 

(1.8

)

 

 

(0.9

)

 

 

(0.7

)

Other assets

 

 

—

 

 

 

(4.6

)

 

 

—

 

Other-than-temporary impairment losses on fixed

   maturities

 

 

(2.2

)

 

 

(1.2

)

 

 

(6.0

)

Other-than-temporary impairment losses on equity

   securities

 

 

(9.7

)

 

 

(1.1

)

 

 

(1.8

)

Gross realized investment and other losses

 

 

(86.5

)

 

 

(42.4

)

 

 

(60.3

)

Net realized investment gains and other

 

$

27.1

 

 

$

94.0

 

 

$

71.3

 

 
Schedule of Realized Gains (Losses) and Changes in Unrealized Appreciation (Depreciation)

Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments are summarized as follows:

 

(in millions)

 

Fixed

Maturities

 

 

Equity

Maturities

 

 

Other

Investments

 

 

Other

 

 

Real Estate Holdings

 

 

Tax

Effects

 

 

Total

 

Year Ended December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized before impairments

 

$

(11.2

)

 

$

33.9

 

 

$

16.6

 

 

$

(0.6

)

 

$

0.3

 

 

$

(15.3

)

 

$

23.7

 

Realized - impairments

 

 

(2.2

)

 

 

(9.7

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4.2

 

 

 

(7.7

)

Change in unrealized

 

 

(65.3

)

 

 

(64.1

)

 

 

1.5

 

 

 

(0.4

)

 

 

—

 

 

 

37.6

 

 

 

(90.7

)

Year Ended December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized before impairments

 

$

4.8

 

 

$

28.6

 

 

$

23.0

 

 

$

(3.4

)

 

$

43.3

 

 

$

(34.0

)

 

$

62.3

 

Realized - impairments

 

 

(1.2

)

 

 

(1.1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.8

 

 

 

(1.5

)

Change in unrealized

 

 

(30.5

)

 

 

(8.4

)

 

 

2.5

 

 

 

—

 

 

 

—

 

 

 

3.1

 

 

 

(33.3

)

Year Ended December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized before impairments

 

$

13.9

 

 

$

57.7

 

 

$

8.1

 

 

$

(0.6

)

 

$

—

 

 

$

(26.2

)

 

$

52.9

 

Realized - impairments

 

 

(6.0

)

 

 

(1.8

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2.7

 

 

 

(5.1

)

Change in unrealized

 

 

(102.6

)

 

 

39.5

 

 

 

4.5

 

 

 

—

 

 

 

—

 

 

 

18.4

 

 

 

(40.2

)

 
Schedule of Fair Value of Foreign Currency Exchange Forward Contracts

The fair value of our foreign currency exchange forward contracts as of December 31 was as follows:

 

(in millions)

 

December 31,

2015

 

 

December 31,

2014

 

Global catastrophe (1)

 

$

—

 

 

$

(0.6

)

Canadian dollar (CAD) currency exposure

 

 

5.2

 

 

 

(0.6

)

Euro (EUR) investment exposure

 

 

2.9

 

 

 

2.3

 

Investment portfolio return strategy (2)

 

 

—

 

 

 

—

 

Total return strategy (3)

 

 

(0.8

)

 

 

—

 

 

 

$

7.3

 

 

$

1.1

 

 

 

(1) 

Program not renewed in 2015.

(2) 

Program inception in 2015 and fair value is less than $0.1 million at December 31, 2015.

(3) 

Program inception in 2015.
Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts

The following table presents our gross investment realized gains and losses on our foreign currency exchange forward contracts:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Realized gains

 

 

 

 

 

 

 

 

 

 

 

 

Global catastrophe

 

$

0.5

 

 

$

4.6

 

 

$

7.8

 

Canadian dollar (CAD) currency exposure

 

 

21.0

 

 

 

4.6

 

 

 

—

 

Euro (EUR) investment exposure

 

 

8.5

 

 

 

6.0

 

 

 

—

 

Investment portfolio return strategy

 

 

5.1

 

 

 

—

 

 

 

—

 

Total return strategy

 

 

1.4

 

 

 

—

 

 

 

—

 

Gross realized investment gains

 

 

36.5

 

 

 

15.2

 

 

 

7.8

 

Realized losses

 

 

 

 

 

 

 

 

 

 

 

 

Global catastrophe

 

 

(2.3

)

 

 

(4.9

)

 

 

(10.4

)

Canadian dollar (CAD) currency exposure

 

 

(7.3

)

 

 

(2.2

)

 

 

—

 

Euro (EUR) investment exposure

 

 

(2.3

)

 

 

(2.4

)

 

 

—

 

Investment portfolio return strategy

 

 

(7.2

)

 

 

—

 

 

 

—

 

Total return strategy

 

 

(2.2

)

 

 

—

 

 

 

—

 

Gross realized investment losses

 

 

(21.3

)

 

 

(9.5

)

 

 

(10.4

)

Net realized investment gains (losses) on foreign

   currency exchange forward contracts

 

$

15.2

 

 

$

5.7

 

 

$

(2.6

)

 
Financial Assets Measured at Fair Value on Recurring Basis

Based on an analysis of the inputs, our financial assets measured at fair value on a recurring basis have been categorized as follows:

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

(in millions)

 

December 31, 2015

 

 

Level 1 (a)

 

 

Level 2 (b)

 

 

Level 3 (c)

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments

 

$

207.9

 

 

$

150.4

 

 

$

57.5

 

 

$

—

 

Non-U.S. Governments

 

 

91.7

 

 

 

—

 

 

 

91.7

 

 

 

—

 

Obligations of states and political subdivisions

 

 

488.0

 

 

 

—

 

 

 

488.0

 

 

 

—

 

Credit-Financial

 

 

535.9

 

 

 

—

 

 

 

535.9

 

 

 

—

 

Credit-Industrial

 

 

517.9

 

 

 

—

 

 

 

517.9

 

 

 

—

 

Credit-Utility

 

 

156.2

 

 

 

—

 

 

 

156.2

 

 

 

—

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency

 

 

131.0

 

 

 

—

 

 

 

131.0

 

 

 

—

 

CMO/MBS-non agency

 

 

11.5

 

 

 

—

 

 

 

11.5

 

 

 

—

 

CMBS

 

 

181.2

 

 

 

—

 

 

 

181.2

 

 

 

—

 

ABS

 

 

110.9

 

 

 

—

 

 

 

110.9

 

 

 

—

 

CLO

 

 

135.6

 

 

 

—

 

 

 

135.6

 

 

 

—

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

151.2

 

 

 

—

 

 

 

151.2

 

 

 

—

 

Credit

 

 

110.1

 

 

 

—

 

 

 

110.1

 

 

 

—

 

ABS/CMBS

 

 

21.9

 

 

 

—

 

 

 

21.9

 

 

 

—

 

CLO

 

 

76.3

 

 

 

—

 

 

 

76.3

 

 

 

—

 

Total fixed maturities

 

 

2,927.3

 

 

 

150.4

 

 

 

2,776.9

 

 

 

—

 

Equity securities

 

 

463.9

 

 

 

457.6

 

 

 

5.6

 

 

 

0.7

 

Other investments

 

 

97.2

 

 

 

—

 

 

 

97.2

 

 

 

—

 

Short-term investments

 

 

210.8

 

 

 

203.6

 

 

 

7.2

 

 

 

—

 

 

 

$

3,699.2

 

 

$

811.6

 

 

$

2,886.9

 

 

$

0.7

 

 

(a) 

Quoted prices in active markets for identical assets

(b) 

Significant other observable inputs

(c) 

Significant unobservable inputs

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

(in millions)

 

December 31, 2014

 

 

Level 1 (a)

 

 

Level 2 (b)

 

 

Level 3 (c)

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments

 

$

185.0

 

 

$

99.2

 

 

$

85.8

 

 

$

—

 

Non-U.S. Governments

 

 

79.9

 

 

 

—

 

 

 

79.9

 

 

 

—

 

Obligations of states and political subdivisions

 

 

490.7

 

 

 

—

 

 

 

490.7

 

 

 

—

 

Credit-Financial

 

 

518.1

 

 

 

—

 

 

 

518.1

 

 

 

—

 

Credit-Industrial

 

 

499.6

 

 

 

—

 

 

 

499.6

 

 

 

—

 

Credit-Utility

 

 

142.0

 

 

 

—

 

 

 

142.0

 

 

 

—

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency

 

 

175.3

 

 

 

—

 

 

 

175.3

 

 

 

—

 

CMO/MBS-non agency

 

 

14.0

 

 

 

—

 

 

 

14.0

 

 

 

—

 

CMBS

 

 

180.0

 

 

 

—

 

 

 

180.0

 

 

 

—

 

ABS

 

 

142.6

 

 

 

—

 

 

 

142.6

 

 

 

—

 

CLO

 

 

78.4

 

 

 

—

 

 

 

78.4

 

 

 

—

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

140.2

 

 

 

—

 

 

 

140.2

 

 

 

—

 

Credit

 

 

126.0

 

 

 

—

 

 

 

126.0

 

 

 

—

 

ABS/CMBS

 

 

27.2

 

 

 

—

 

 

 

27.2

 

 

 

—

 

CLO

 

 

41.7

 

 

 

—

 

 

 

41.7

 

 

 

—

 

Total fixed maturities

 

 

2,840.7

 

 

 

99.2

 

 

 

2,741.5

 

 

 

—

 

Equity securities

 

 

503.8

 

 

 

485.4

 

 

 

17.5

 

 

 

0.9

 

Other investments

 

 

97.3

 

 

 

—

 

 

 

97.3

 

 

 

—

 

Short-term investments

 

 

258.3

 

 

 

256.4

 

 

 

1.9

 

 

 

—

 

 

 

$

3,700.1

 

 

$

841.0

 

 

$

2,858.2

 

 

$

0.9

 

 

(a) 

Quoted prices in active markets for identical assets

(b) 

Significant other observable inputs

(c) 

Significant unobservable inputs

Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3

A reconciliation of the beginning and ending balances for the investments categorized as Level 3 are as follows:

Fair Value Measurements Using Observable Inputs (Level 3)

 

(in millions)

 

Equity

Securities

 

 

Total

 

Beginning balance, January 1, 2015

 

$

0.9

 

 

$

0.9

 

Transfers into Level 3

 

 

—

 

 

 

—

 

Transfers out of Level 3

 

 

—

 

 

 

—

 

Total gains or losses (realized/unrealized):

 

 

—

 

 

 

 

 

Included in net income (loss)

 

 

—

 

 

 

—

 

Included in other comprehensive income (loss)

 

 

—

 

 

 

—

 

Purchases, issuances, sales, and settlements

 

 

—

 

 

 

 

 

Purchases

 

 

—

 

 

 

—

 

Issuances

 

 

—

 

 

 

—

 

Sales

 

 

(0.2

)

 

 

(0.2

)

Settlements

 

 

—

 

 

 

—

 

Ending balance, December 31, 2015

 

$

0.7

 

 

$

0.7

 

Amount of total gains or losses for the year included in net

   income (loss) attributable to the change in unrealized gains

   or losses relating to assets still held at December 31, 2015

 

$

—

 

 

$

—

 

 

(in millions)

 

Equity

Securities

 

 

Other

Assets

 

 

Total

 

Beginning balance, January 1, 2014

 

$

1.3

 

 

$

2.6

 

 

$

3.9

 

Transfers into Level 3

 

 

—

 

 

 

—

 

 

 

—

 

Transfers out of Level 3

 

 

—

 

 

 

—

 

 

 

—

 

Total gains or losses (realized/unrealized):

 

 

 

 

 

 

 

 

 

 

 

 

Included in net income (loss)

 

 

—

 

 

 

—

 

 

 

—

 

Included in other comprehensive income (loss)

 

 

0.1

 

 

 

—

 

 

 

0.1

 

Purchases, issuances, sales, and settlements

 

 

 

 

 

 

 

 

 

 

 

 

Purchases

 

 

—

 

 

 

—

 

 

 

—

 

Issuances

 

 

—

 

 

 

—

 

 

 

—

 

Sales

 

 

(0.5

)

 

 

—

 

 

 

(0.5

)

Settlements

 

 

—

 

 

 

(2.6

)

 

 

(2.6

)

Ending balance, December 31, 2014

 

$

0.9

 

 

$

—

 

 

$

0.9

 

Amount of total gains or losses for the year included in net

   income (loss) attributable to the change in unrealized gains

   or losses relating to assets still held at December 31, 2014

 

$

—

 

 

$

—

 

 

$

—

 

 
v3.3.1.900
Reinsurance (Tables)
 12 Months Ended
Dec. 31, 2015
Insurance [Abstract]  
Schedule of Reinsurance Premiums

Premiums were as follows:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Direct written premiums

 

$

1,651.4

 

 

$

1,585.5

 

 

$

1,576.1

 

Reinsurance ceded to other companies

 

 

(610.0

)

 

 

(537.5

)

 

 

(537.1

)

Reinsurance assumed from other companies

 

 

360.7

 

 

 

319.9

 

 

 

312.3

 

Net written premiums

 

$

1,402.1

 

 

$

1,367.9

 

 

$

1,351.3

 

Direct earned premiums

 

$

1,602.2

 

 

$

1,551.8

 

 

$

1,541.0

 

Reinsurance ceded to other companies

 

 

(563.7

)

 

 

(524.8

)

 

 

(533.7

)

Reinsurance assumed from other companies

 

 

333.4

 

 

 

311.1

 

 

 

296.5

 

Net earned premiums

 

$

1,371.9

 

 

$

1,338.1

 

 

$

1,303.8

 

Percentage of reinsurance assumed to net earned

   premiums

 

 

24.3

%

 

 

23.2

%

 

 

22.7

%

 
v3.3.1.900
Reserves for Losses and Loss Adjustment Expenses (Tables)
 12 Months Ended
Dec. 31, 2015
Insurance [Abstract]  
Reserves for Losses and Loss Adjustment Expenses

The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”):

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Net reserves beginning of the year

 

$

2,137.1

 

 

$

2,107.6

 

 

$

2,110.9

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Losses and LAE incurred during current calendar

   year, net of reinsurance:

 

 

 

 

 

 

 

 

 

 

 

 

Current accident year

 

 

798.5

 

 

 

785.1

 

 

 

775.6

 

Prior accident years

 

 

(32.4

)

 

 

(37.7

)

 

 

(33.6

)

Losses and LAE incurred during calendar year, net

   of reinsurance

 

 

766.1

 

 

 

747.4

 

 

 

742.0

 

Deduct:

 

 

 

 

 

 

 

 

 

 

 

 

Losses and LAE payments made during current

   calendar year, net of reinsurance:

 

 

 

 

 

 

 

 

 

 

 

 

Current accident year

 

 

169.0

 

 

 

185.9

 

 

 

199.3

 

Prior accident years

 

 

564.5

 

 

 

550.8

 

 

 

554.2

 

Losses and LAE payments made during current

   calendar year, net of reinsurance:

 

 

733.5

 

 

 

736.7

 

 

 

753.5

 

Change in participation interest (1)

 

 

(1.2

)

 

 

37.8

 

 

 

10.4

 

Foreign exchange adjustments

 

 

(35.2

)

 

 

(19.0

)

 

 

(2.2

)

Net reserves - end of year

 

 

2,133.3

 

 

 

2,137.1

 

 

 

2,107.6

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Reinsurance recoverables on unpaid losses and LAE,

   end of year

 

 

990.3

 

 

 

905.3

 

 

 

1,122.7

 

Gross reserves - end of year

 

$

3,123.6

 

 

$

3,042.4

 

 

$

3,230.3

 

 

(1) 

Amount represents (decrease) increase in reserves due to change in our syndicate participation.

v3.3.1.900
Junior Subordinated Debentures (Tables)
 12 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Schedule of Junior Subordinated Debentures

A summary of our outstanding junior subordinated debentures is presented below:

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issue Date

 

Trust Preferred Pools

 

Maturity

 

Rate Structure

 

Interest Rate at December 31, 2015

 

 

Amount

 

Argo Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

05/15/2003

 

PXRE Capital Statutory Trust II

 

05/15/2033

 

3M LIBOR + 4.10%

 

 

4.46%

 

 

$

18.1

 

11/06/2003

 

PXRE Capital Trust VI

 

09/30/2033

 

3M LIBOR + 3.90%

 

 

4.51%

 

 

 

10.3

 

Argo Group US

 

 

 

 

 

 

 

 

 

 

 

 

 

 

05/15/2003

 

Argonaut Group Statutory Trust I

 

05/15/2033

 

3M LIBOR + 4.10%

 

 

4.46%

 

 

 

15.5

 

12/16/2003

 

Argonaut Group Statutory Trust III

 

01/08/2034

 

3M LIBOR + 4.10%

 

 

4.42%

 

 

 

12.3

 

04/29/2004

 

Argonaut Group Statutory Trust IV

 

04/29/2034

 

3M LIBOR + 3.85%

 

 

4.21%

 

 

 

13.4

 

05/26/2004

 

Argonaut Group Statutory Trust V

 

05/24/2034

 

3M LIBOR + 3.85%

 

 

4.23%

 

 

 

12.3

 

05/12/2004

 

Argonaut Group Statutory Trust VI

 

05/12/2034

 

3M LIBOR + 3.80%

 

 

4.33%

 

 

 

13.4

 

09/17/2004

 

Argonaut Group Statutory Trust VII

 

12/15/2034

 

3M LIBOR + 3.60%

 

 

4.11%

 

 

 

15.5

 

09/22/2004

 

Argonaut Group Statutory Trust VIII

 

09/22/2034

 

3M LIBOR + 3.55%

 

 

4.14%

 

 

 

15.5

 

10/22/2004

 

Argonaut Group Statutory Trust IX

 

12/15/2034

 

3M LIBOR + 3.60%

 

 

4.11%

 

 

 

15.5

 

09/15/2005

 

Argonaut Group Statutory Trust X

 

09/15/2035

 

3M LIBOR + 3.40%

 

 

3.91%

 

 

 

30.9

 

 

 

Total Outstanding

 

 

 

 

 

 

 

 

 

$

172.7

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issue Date

 

Trust Preferred Pools

 

Maturity

 

Rate Structure

 

Interest Rate at December 31, 2014

 

 

Amount

 

Argo Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

05/15/2003

 

PXRE Capital Statutory Trust II

 

05/15/2033

 

3M LIBOR + 4.10%

 

 

4.33%

 

 

$

18.1

 

11/06/2003

 

PXRE Capital Trust VI

 

09/30/2033

 

3M LIBOR + 3.90%

 

 

4.16%

 

 

 

10.3

 

Argo Group US

 

 

 

 

 

 

 

 

 

 

 

 

 

 

05/15/2003

 

Argonaut Group Statutory Trust I

 

05/15/2033

 

3M LIBOR + 4.10%

 

 

4.33%

 

 

 

15.5

 

12/16/2003

 

Argonaut Group Statutory Trust III

 

01/08/2034

 

3M LIBOR + 4.10%

 

 

4.33%

 

 

 

12.3

 

04/29/2004

 

Argonaut Group Statutory Trust IV

 

04/29/2034

 

3M LIBOR + 3.85%

 

 

4.08%

 

 

 

13.4

 

05/26/2004

 

Argonaut Group Statutory Trust V

 

05/24/2034

 

3M LIBOR + 3.85%

 

 

4.08%

 

 

 

12.3

 

05/12/2004

 

Argonaut Group Statutory Trust VI

 

05/12/2034

 

3M LIBOR + 3.80%

 

 

4.04%

 

 

 

13.4

 

09/17/2004

 

Argonaut Group Statutory Trust VII

 

12/15/2034

 

3M LIBOR + 3.60%

 

 

3.84%

 

 

 

15.5

 

09/22/2004

 

Argonaut Group Statutory Trust VIII

 

09/22/2034

 

3M LIBOR + 3.55%

 

 

3.80%

 

 

 

15.5

 

10/22/2004

 

Argonaut Group Statutory Trust IX

 

12/15/2034

 

3M LIBOR + 3.60%

 

 

3.84%

 

 

 

15.5

 

09/15/2005

 

Argonaut Group Statutory Trust X

 

09/15/2035

 

3M LIBOR + 3.40%

 

 

3.64%

 

 

 

30.9

 

 

 

Total Outstanding

 

 

 

 

 

 

 

 

 

$

172.7

 

 
v3.3.1.900
Other Indebtedness (Tables)
 12 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Schedule of Floating Rate Loan Stock, Notes Outstanding

A summary of the notes outstanding at December 31, 2015 and 2014 is presented below:

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issue Date

 

Currency

 

Maturity

 

Rate Structure

 

Interest Rate at

December 31, 2015

 

 

Amount

 

12/08/2004

 

U.S. Dollar

 

11/15/2034

 

6 month LIBOR + 4.2%

 

 

4.66%

 

 

$

6.5

 

09/06/2005

 

Euro

 

08/22/2035

 

3 month LIBOR + 4.0%

 

 

3.91%

 

 

 

12.7

 

10/31/2006

 

U.S. Dollar

 

01/15/2036

 

6 month LIBOR + 4.0%

 

 

4.46%

 

 

 

10.0

 

10/31/2006

 

Euro

 

11/22/2036

 

3 month LIBOR + 4.0%

 

 

3.91%

 

 

 

11.1

 

06/08/2007

 

Euro

 

09/15/2037

 

3 month LIBOR + 3.9%

 

 

3.86%

 

 

 

14.3

 

 

 

 

 

 

 

 

 

 

 

 

 

$

54.6

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issue Date

 

Currency

 

Maturity

 

Rate Structure

 

Interest Rate at

December 31, 2014

 

 

Amount

 

12/08/2004

 

U.S. Dollar

 

11/15/2034

 

6 month LIBOR + 4.2%

 

 

4.53%

 

 

$

6.5

 

09/06/2005

 

Euro

 

08/22/2035

 

3 month LIBOR + 4.0%

 

 

4.08%

 

 

 

14.9

 

10/31/2006

 

U.S. Dollar

 

01/15/2036

 

6 month LIBOR + 4.0%

 

 

4.33%

 

 

 

10.0

 

10/31/2006

 

Euro

 

11/22/2036

 

3 month LIBOR + 4.0%

 

 

4.08%

 

 

 

13.1

 

06/08/2007

 

Euro

 

09/15/2037

 

3 month LIBOR + 3.9%

 

 

3.98%

 

 

 

16.8

 

 

 

 

 

 

 

 

 

 

 

 

 

$

61.3

 

 
v3.3.1.900
Disclosures about Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2015
Fair Value Disclosures [Abstract]  
Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value

A summary of our financial instruments whose carrying value did not equal fair value is shown below:

 

 

 

December 31, 2015

 

 

December 31, 2014

 

(in millions)

 

Carrying

Amount

 

 

Fair

Value

 

 

Carrying

Amount

 

 

Fair

Value

 

Junior subordinated debentures

 

$

172.7

 

 

$

166.5

 

 

$

172.7

 

 

$

155.5

 

Senior unsecured fixed rate notes

 

 

143.8

 

 

 

146.3

 

 

 

143.8

 

 

 

132.3

 

Other indebtedness:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Floating rate loan stock

 

 

54.6

 

 

 

52.7

 

 

 

61.3

 

 

 

55.2

 

Note payable

 

 

0.6

 

 

 

0.6

 

 

 

0.7

 

 

 

0.6

 

 

 

$

371.7

 

 

$

366.1

 

 

$

378.5

 

 

$

343.6

 

 
v3.3.1.900
Shareholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2015
Equity [Abstract]  
Schedule of Repurchase of Shares

A summary of common shares repurchased in 2015 is shown below:

 

Repurchase Type

 

Date

Trading Plan

Initiated

 

2015

Purchase

Period

 

Number of

Shares

Repurchased

 

 

Average Price

of Shares

Repurchased

 

 

Total Cost

(in millions)

 

 

Repurchase

Authorization

Year

10b5-1 Trading Plan

 

12/15/2014

 

01/05/2015-02/12/2015

 

 

117,482

 

 

$

53.50

 

 

$

6.3

 

 

2013

10b5-1 Trading Plan

 

03/16/2015

 

03/18/2015-05/06/2015

 

 

150,050

 

 

$

49.56

 

 

 

7.4

 

 

2013

10b5-1 Trading Plan

 

12/16/2015

 

12/18/2015-12/23/2015

 

 

100

 

 

$

59.03

 

 

 

—

 

 

2013

Open Market

 

N/A

 

01/01/2015-09/30/2015

 

 

307,523

 

 

$

51.83

 

 

 

16.0

 

 

2013

Total

 

 

 

 

 

 

575,155

 

 

$

51.58

 

 

$

29.7

 

 

 

 
Schedule of Authorized and Unissued Common Shares Reserved

At December 31, 2015, we had the following authorized, unissued common shares reserved for future issuance:

 

Reserve Name

 

Shares Reserved

 

2014 Long-Term Incentive Plan

 

 

3,930,147

 

2007 Employee Share Purchase Plan

 

 

1,929,537

 

Historical stock compensation plans

 

 

860

 

Total

 

 

5,860,544

 

 
v3.3.1.900
Accumulated Other Comprehensive Income (Loss) (Tables)
 12 Months Ended
Dec. 31, 2015
Equity [Abstract]  
Changes in Accumulated Other Comprehensive Income (Loss)

A summary of changes in accumulated other comprehensive income (loss), net of taxes (where applicable) by component is presented below:

 

(in millions)

 

Foreign Currency

Translation

Adjustments

 

 

Unrealized

Holding Gains

on Securities

 

 

Defined Benefit

Pension Plans

 

 

Total

 

Balance, January 1, 2014

 

$

(11.5

)

 

$

163.9

 

 

$

(4.6

)

 

$

147.8

 

Other comprehensive (loss) income before

   reclassifications

 

 

(4.1

)

 

 

(12.5

)

 

 

(2.4

)

 

 

(19.0

)

Amounts reclassified from accumulated other

   comprehensive (loss) income

 

 

—

 

 

 

(20.7

)

 

 

—

 

 

 

(20.7

)

Net current-period other comprehensive (loss) income

 

 

(4.1

)

 

 

(33.2

)

 

 

(2.4

)

 

 

(39.7

)

Balance, December 31, 2014

 

 

(15.6

)

 

 

130.7

 

 

 

(7.0

)

 

 

108.1

 

Other comprehensive (loss) income before

   reclassifications

 

 

(6.0

)

 

 

(89.8

)

 

 

0.1

 

 

 

(95.7

)

Amounts reclassified from accumulated other

   comprehensive (loss) income

 

 

—

 

 

 

(0.9

)

 

 

—

 

 

 

(0.9

)

Net current-period other comprehensive (loss) income

 

 

(6.0

)

 

 

(90.7

)

 

 

0.1

 

 

 

(96.6

)

Balance, December 31, 2015

 

$

(21.6

)

 

$

40.0

 

 

$

(6.9

)

 

$

11.5

 

 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)

The amounts reclassified from accumulated other comprehensive income (loss) shown in the above table have been included in the following captions in our Consolidated Statements of Income:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Unrealized gains and losses on securities:

 

 

 

 

 

 

 

 

 

 

 

 

Net realized investment gains

 

$

(7.2

)

 

$

(30.6

)

 

$

(59.8

)

Provision for income taxes

 

 

6.3

 

 

 

9.9

 

 

 

19.4

 

Net of taxes

 

$

(0.9

)

 

$

(20.7

)

 

$

(40.4

)

 
v3.3.1.900
Net Income Per Common Share (Tables)
 12 Months Ended
Dec. 31, 2015
Earnings Per Share [Abstract]  
Net Income Per Common Share on Basic and Diluted Basis

The following table presents the calculation of net income per common share on a basic and diluted basis:

 

 

 

For the Years Ended December 31,

 

(in millions, except number of shares and per share amounts)

 

2015

 

 

2014

 

 

2013

 

Net income

 

$

163.2

 

 

$

183.2

 

 

$

143.2

 

Weighted average common shares outstanding - basic

 

 

27,972,962

 

 

 

28,690,306

 

 

 

29,536,472

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

Equity compensation awards

 

 

560,337

 

 

 

522,542

 

 

 

1,120,011

 

Weighted average common shares outstanding - diluted

 

 

28,533,299

 

 

 

29,212,848

 

 

 

30,656,483

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

5.84

 

 

$

6.39

 

 

$

4.85

 

Diluted

 

$

5.72

 

 

$

6.27

 

 

$

4.67

 

 
v3.3.1.900
Share-based Compensation (Tables)
 12 Months Ended
Dec. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Fair Value Assumptions

The following table summarizes the assumptions we used:

 

 

 

For the Years Ended December 31,

 

 

2015

 

2014

 

2013

Risk-free rate of return

 

1.44% to 1.81%

 

1.53% to 1.77%

 

0.80% to 1.71%

Expected dividend yields

 

1.46% to 1.60%

 

1.49% to 1.55%

 

1.49% to 1.67%

Expected award life (years)

 

4.62 to 4.71

 

4.67 to 4.85

 

4.91 to 5.07

Expected volatility

 

20.04% to 22.09%

 

22.84% to 25.46%

 

26.30% to 32.07%

 
Summary of Restricted Share Activity

A summary of restricted share activity as of December 31, 2015 and changes during the year then ended is as follows:

 

 

 

Shares

 

 

Weighted-Average

Grant Date

Fair Value

 

Outstanding at January 1, 2015

 

 

313,716

 

 

$

35.19

 

Granted

 

 

299,902

 

 

$

41.94

 

Vested and issued

 

 

(123,028

)

 

$

30.04

 

Expired or forfeited

 

 

(15,283

)

 

$

45.20

 

Outstanding at December 31, 2015

 

 

475,307

 

 

$

40.46

 

 
Summary of Stock-Settled SARs Activity

A summary of stock-settled SARs activity as of December 31, 2015 and changes during the year then ended is as follows:

 

 

 

Shares

 

 

Weighted-Average

Exercise Price

 

Outstanding at January 1, 2015

 

 

1,313,726

 

 

$

28.43

 

Granted

 

 

243,305

 

 

$

46.53

 

Exercised

 

 

(228,244

)

 

$

24.21

 

Expired or forfeited

 

 

(10,686

)

 

$

28.17

 

Outstanding at December 31, 2015

 

 

1,318,101

 

 

$

32.50

 

Vested or expected to vest as of end of year

 

 

1,238,645

 

 

$

32.01

 

Exercisable at end of year

 

 

803,807

 

 

$

27.58

 

 
Summary of Cash-Settled SARs Activity

A summary of cash-settled SARs activity as of December 31, 2015 and changes during the year then ended is as follows:

 

 

 

Shares

 

 

Weighted-Average

Exercise Price

 

Outstanding at January 1, 2015

 

 

2,001,451

 

 

$

32.76

 

Granted

 

 

913,157

 

 

$

47.48

 

Exercised

 

 

(492,511

)

 

$

29.47

 

Expired or forfeited

 

 

(287,976

)

 

$

37.11

 

Outstanding at December 31, 2015

 

 

2,134,121

 

 

$

39.22

 

Vested or expected to vest as of end of year

 

 

1,876,079

 

 

$

37.79

 

Exercisable at end of year

 

 

463,176

 

 

$

30.38

 

 
v3.3.1.900
Underwriting, Acquisition and Insurance Expenses (Tables)
 12 Months Ended
Dec. 31, 2015
Underwriting Acquisition And Insurance Expenses [Abstract]  
Underwriting, Acquisition and Insurance Expenses

Underwriting, acquisition and insurance expenses were as follows:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Commissions

 

$

232.2

 

 

$

231.1

 

 

$

229.6

 

General expenses

 

 

298.5

 

 

 

288.0

 

 

 

272.8

 

Premium taxes, boards and bureaus

 

 

9.8

 

 

 

25.5

 

 

 

24.2

 

 

 

 

540.5

 

 

 

544.6

 

 

 

526.6

 

Net deferral of policy acquisition costs

 

 

(0.9

)

 

 

(5.4

)

 

 

(15.8

)

Total underwriting, acquisition and insurance expenses

 

$

539.6

 

 

$

539.2

 

 

$

510.8

 

 
v3.3.1.900
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Income Tax Provision (Benefit)

Our income tax provision includes the following components:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Current tax provision

 

$

6.0

 

 

$

5.2

 

 

$

32.7

 

Deferred tax provision related to:

 

 

 

 

 

 

 

 

 

 

 

 

Future tax deductions

 

 

10.9

 

 

 

58.4

 

 

 

0.1

 

Valuation allowance change

 

 

(2.6

)

 

 

(30.8

)

 

 

3.7

 

Income tax provision

 

$

14.3

 

 

$

32.8

 

 

$

36.5

 

 
Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates

For the years ended December 31, 2015, 2014 and 2013, pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows:

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

 

 

Pre-Tax

Income (Loss)

 

 

Effective

Tax

Rate

 

 

Pre-Tax

Income (Loss)

 

 

Effective

Tax

Rate

 

 

Pre-Tax

Income (Loss)

 

 

Effective

Tax

Rate

 

Bermuda

 

$

94.3

 

 

 

0.0

%

 

$

102.8

 

 

 

0.0

%

 

$

50.5

 

 

 

0.0

%

United States

 

 

64.8

 

 

 

19.9

%

 

 

98.0

 

 

 

28.1

%

 

 

120.9

 

 

 

28.2

%

United Kingdom

 

 

21.3

 

 

 

(4.7

%)

 

 

21.5

 

 

 

24.8

%

 

 

18.5

 

 

 

12.0

%

Belgium

 

 

—

 

(1)

 

237.0

%

 

 

—

 

(1)

 

63.8

%

 

 

0.2

 

 

 

103.0

%

Brazil

 

 

(3.2

)

 

 

0.0

%

 

 

(2.2

)

 

 

0.0

%

 

 

(9.7

)

 

 

0.0

%

United Arab Emirates

 

 

0.2

 

 

 

0.0

%

 

 

(0.9

)

 

 

0.0

%

 

 

1.1

 

 

 

0.0

%

Ireland (2)

 

 

(0.1

)

 

 

5.0

%

 

 

(1.1

)

 

 

0.0

%

 

 

(0.1

)

 

 

0.0

%

Malta

 

 

0.1

 

 

 

0.0

%

 

 

(2.2

)

 

 

0.0

%

 

 

(1.7

)

 

 

0.0

%

Switzerland

 

 

0.1

 

 

 

20.5

%

 

 

0.1

 

 

 

17.6

%

 

 

—

 

(1)

 

5.6

%

Pre-tax income

 

$

177.5

 

 

 

 

 

 

$

216.0

 

 

 

 

 

 

$

179.7

 

 

 

 

 

 

(1)

Pre-tax income for the respective year was less than $0.1 million.

(2)

Effective tax rate of 5 percent on intercompany dividends of $50.0 million for the year ended December 31, 2015.  Dividends eliminated in consolidation.
Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate

A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Income tax provision at expected rate

 

$

25.8

 

 

$

37.2

 

 

$

43.1

 

Tax effect of:

 

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt interest

 

 

(4.2

)

 

 

(4.5

)

 

 

(5.6

)

Dividends received deduction

 

 

(2.3

)

 

 

(2.3

)

 

 

(2.3

)

Valuation allowance change

 

 

(2.6

)

 

 

(30.8

)

 

 

3.7

 

Other permanent adjustments, net

 

 

0.3

 

 

 

(0.7

)

 

 

0.3

 

Adjustment for prior year tax return

 

 

(0.6

)

 

 

(0.9

)

 

 

(1.6

)

United States state tax expense

 

 

(2.5

)

 

 

2.5

 

 

 

0.3

 

PXRE Reinsurance capital loss carryforward

 

 

—

 

 

 

29.8

 

 

 

—

 

Other foreign adjustments

 

 

(0.3

)

 

 

0.7

 

 

 

(0.1

)

Foreign tax credit utilization

 

 

(2.1

)

 

 

0.1

 

 

 

1.1

 

Deferred tax rate reduction

 

 

—

 

 

 

(0.4

)

 

 

(1.2

)

Foreign exchange adjustments

 

 

(0.1

)

 

 

1.7

 

 

 

(1.7

)

Foreign withholding taxes

 

 

2.9

 

 

 

0.4

 

 

 

0.5

 

Income tax provision

 

$

14.3

 

 

$

32.8

 

 

$

36.5

 

Income tax provision  - Foreign

 

$

(1.1

)

 

$

5.2

 

 

$

2.4

 

Income tax provision - United States, Federal

 

 

16.4

 

 

 

23.3

 

 

 

33.2

 

Income tax (benefit) provision  - United States, State

 

 

(3.9

)

 

 

3.9

 

 

 

0.4

 

Foreign withholding tax

 

 

2.9

 

 

 

0.4

 

 

 

0.5

 

Income tax provision

 

$

14.3

 

 

$

32.8

 

 

$

36.5

 

 
Schedule of Deferred Tax Assets and Liabilities

 

 

 

December 31,

 

(in millions)

 

2015

 

 

2014

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Losses and loss adjustment expense reserve discounting

 

$

23.4

 

 

$

25.1

 

Unearned premiums

 

 

26.6

 

 

 

24.8

 

Allowance for bad debt

 

 

1.6

 

 

 

2.0

 

Accrual for contingent commissions

 

 

0.3

 

 

 

0.3

 

Net operating loss carryforward

 

 

17.8

 

 

 

18.8

 

Impairment of investment values

 

 

9.6

 

 

 

8.2

 

United States amortization of intangible assets

 

 

4.9

 

 

 

4.3

 

Accrued bonus

 

 

7.0

 

 

 

6.7

 

Accrued vacation

 

 

1.6

 

 

 

1.7

 

Stock option expense

 

 

10.1

 

 

 

8.0

 

Brazil operating losses

 

 

5.9

 

 

 

7.4

 

Malta operating losses

 

 

1.8

 

 

 

2.1

 

Other

 

 

15.9

 

 

 

7.0

 

Deferred tax assets, gross

 

 

126.5

 

 

 

116.4

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Unrealized gains on equity securities

 

 

(40.1

)

 

 

(62.3

)

Unrealized gains on fixed maturities and other investment

   securities

 

 

(0.4

)

 

 

(15.3

)

Deferred acquisition costs

 

 

(20.4

)

 

 

(20.3

)

United States amortization of intangible assets

 

 

(3.6

)

 

 

(3.5

)

United Kingdom underwriting losses

 

 

(9.7

)

 

 

(9.0

)

United Kingdom amortization of intangible assets

 

 

(1.8

)

 

 

(2.3

)

Deferred gain on like-kind exchange

 

 

(13.3

)

 

 

—

 

Depreciable fixed asset

 

 

(18.0

)

 

 

(16.3

)

Unrealized Gain on Limited Partnership Interests

 

 

(11.0

)

 

 

(10.5

)

Other

 

 

(9.0

)

 

 

(4.5

)

Deferred tax liabilities, gross

 

 

(127.3

)

 

 

(144.0

)

Deferred tax assets, net before valuation allowance

 

$

(0.8

)

 

$

(27.6

)

Valuation allowance

 

 

(22.8

)

 

 

(25.4

)

Deferred tax liabilities, net

 

$

(23.6

)

 

$

(53.0

)

Net deferred tax liabilities - Foreign

 

$

(11.7

)

 

$

(11.8

)

Net deferred tax liabilities - United States

 

 

(11.9

)

 

 

(41.2

)

Deferred tax liabilities, net

 

$

(23.6

)

 

$

(53.0

)

 
v3.3.1.900
Pension Benefits and Savings Plans (Tables)
 12 Months Ended
Dec. 31, 2015
Compensation And Retirement Disclosure [Abstract]  
Schedule of Change in Plan Assets

The assets and liabilities of the plans were measured as of December 31 of the respective years presented.

 

(in millions)

 

2015

 

 

2014

 

Change in plan assets

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

19.2

 

 

$

20.2

 

Actual return on plan assets

 

 

(0.1

)

 

 

1.0

 

Employer contributions

 

 

0.2

 

 

 

0.2

 

Settlements and benefits paid

 

 

(1.8

)

 

 

(2.2

)

Fair value of plan assets at end of year

 

$

17.5

 

 

$

19.2

 

 
Schedule of Change in Projected Benefit Obligation

 

(in millions)

 

2015

 

 

2014

 

Change in projected benefit obligation

 

 

 

 

 

 

 

 

Projected benefit obligation at beginning of year

 

$

25.8

 

 

$

22.6

 

Interest cost

 

 

0.8

 

 

 

1.0

 

Actuarial loss (gain)

 

 

(1.6

)

 

 

4.3

 

Settlements and benefits paid

 

 

(1.9

)

 

 

(2.1

)

Projected benefit obligation at end of year

 

$

23.1

 

 

$

25.8

 

 
Schedule of Assumptions to Determine Benefit Obligations

Assumptions used to determine benefit obligations at December 31 were as follows:

 

 

 

2015

 

 

2014

 

Weighted average discount rate

 

 

3.48%

 

 

 

3.37%

 

Expected rate of increase in future compensation levels

 

n/a

 

 

n/a

 

 
Schedule of Assumptions to Determine Net Periodic Benefit Cost

Assumptions used to determine net periodic benefit cost follows:

 

 

 

For the Years Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Weighted average discount rate

 

 

3.55%

 

 

 

4.39%

 

 

 

3.63%

 

Expected return on plan assets

 

 

6.00%

 

 

 

6.00%

 

 

 

6.00%

 

Expected rate of increase in future compensation levels

 

n/a

 

 

n/a

 

 

n/a

 

 
v3.3.1.900
Leases (Tables)
 12 Months Ended
Dec. 31, 2015
Leases [Abstract]  
Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases

At December 31, 2015, the future minimum payments under non-cancelable operating leases are as follows:

 

(in millions)

 

Amount Due

 

2016

 

$

10.3

 

2017

 

 

9.2

 

2018

 

 

7.1

 

2019

 

 

5.9

 

2020

 

 

3.3

 

Thereafter

 

 

4.4

 

Total

 

$

40.2

 

 
v3.3.1.900
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Revenue and Income (Loss) Before Income Taxes for Each Segment

Revenue and income (loss) before income taxes for each segment were as follows:

 

 

For the Years Ended December 31,

 

(in millions)

2015

 

 

2014

 

 

2013

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

Earned premiums

 

 

 

 

 

 

 

 

 

 

 

Excess and Surplus Lines

$

525.3

 

 

$

485.2

 

 

$

460.2

 

Commercial Specialty

 

290.1

 

 

 

291.9

 

 

 

299.0

 

International Specialty

 

148.7

 

 

 

148.3

 

 

 

142.4

 

Syndicate 1200

 

407.4

 

 

 

411.1

 

 

 

401.7

 

Run-off Lines

 

0.4

 

 

 

1.6

 

 

 

0.5

 

Total earned premiums

 

1,371.9

 

 

 

1,338.1

 

 

 

1,303.8

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

Excess and Surplus Lines

 

35.2

 

 

 

36.7

 

 

 

42.2

 

Commercial Specialty

 

18.5

 

 

 

18.7

 

 

 

22.8

 

International Specialty

 

11.8

 

 

 

8.2

 

 

 

8.4

 

Syndicate 1200

 

9.2

 

 

 

10.2

 

 

 

11.0

 

Run-off Lines

 

8.3

 

 

 

9.7

 

 

 

10.8

 

Corporate and Other

 

2.6

 

 

 

3.1

 

 

 

4.8

 

Total net investment income

 

85.6

 

 

 

86.6

 

 

 

100.0

 

Net realized investment and other gains

 

27.1

 

 

 

94.0

 

 

 

71.3

 

Total revenue

$

1,484.6

 

 

$

1,518.7

 

 

$

1,475.1

 

 

 

For the Years Ended December 31,

 

(in millions)

2015

 

 

2014

 

 

2013

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

 

Excess and Surplus Lines

$

96.0

 

 

$

106.0

 

 

$

89.4

 

Commercial Specialty

 

29.9

 

 

 

8.9

 

 

 

21.4

 

International Specialty

 

31.3

 

 

 

21.1

 

 

 

11.3

 

Syndicate 1200

 

33.8

 

 

 

44.1

 

 

 

37.3

 

Run-off Lines

 

(7.2

)

 

 

(23.0

)

 

 

(10.6

)

Total segment income before taxes

 

183.8

 

 

 

157.1

 

 

 

148.8

 

Corporate and Other

 

(33.4

)

 

 

(35.1

)

 

 

(40.4

)

Net realized investment and other gains

 

27.1

 

 

 

94.0

 

 

 

71.3

 

Total income (loss) before income taxes

$

177.5

 

 

$

216.0

 

 

$

179.7

 

 
Schedule of Earned Premiums by Geographic Location

The table below presents earned premiums by geographic location. For this disclosure, we determine geographic location by the country of domicile of our subsidiaries that underwrite the business and not by the location of insureds or reinsureds from whom the business was generated.

 

 

For the Years Ended December 31,

 

(in millions)

2015

 

 

2014

 

 

2013

 

Bermuda

$

103.4

 

 

$

101.5

 

 

$

101.7

 

Brazil

 

43.1

 

 

 

44.3

 

 

 

38.7

 

Malta

 

1.9

 

 

 

2.1

 

 

 

1.8

 

United Kingdom

 

407.4

 

 

 

411.7

 

 

 

401.7

 

United States

 

816.1

 

 

 

778.5

 

 

 

759.9

 

Total earned premiums

$

1,371.9

 

 

$

1,338.1

 

 

$

1,303.8

 

 
Identifiable Assets

The following table represents identifiable assets:

 

 

 

December 31,

 

(in millions)

 

2015

 

 

2014

 

Excess and Surplus Lines

 

$

2,439.9

 

 

$

2,344.0

 

Commercial Specialty

 

 

1,360.7

 

 

 

1,307.0

 

International Specialty

 

 

793.6

 

 

 

776.8

 

Syndicate 1200

 

 

1,371.2

 

 

 

1,258.5

 

Run-off Lines

 

 

527.2

 

 

 

550.5

 

Corporate and Other

 

 

137.5

 

 

 

119.5

 

Total

 

$

6,630.1

 

 

$

6,356.3

 

 
Schedule of Goodwill and Intangible Assets Net of Accumulated Amortization

The following table represents goodwill and intangible assets, net of accumulated amortization as of December 31:

 

 

 

Goodwill

 

 

Intangible Assets, Net of

Accumulated Amortization

 

(in millions)

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Excess and Surplus Lines

 

$

76.4

 

 

$

76.4

 

 

$

2.2

 

 

$

2.8

 

Commercial Specialty

 

 

47.1

 

 

 

47.1

 

 

 

4.1

 

 

 

5.5

 

Syndicate 1200

 

 

28.7

 

 

 

28.7

 

 

 

67.0

 

 

 

70.3

 

Total

 

$

152.2

 

 

$

152.2

 

 

$

73.3

 

 

$

78.6

 

 
v3.3.1.900
Run-off Lines (Tables)
 12 Months Ended
Dec. 31, 2015
Gross Reserves for Run-Off Lines

The following table presents our gross reserves for Run-off Lines as of December 31:

 

 

 

December 31,

 

(in millions)

 

2015

 

 

2014

 

Asbestos and Environmental:

 

 

 

 

 

 

 

 

Reinsurance assumed

 

$

34.6

 

 

$

40.1

 

Other

 

 

11.8

 

 

 

13.8

 

Total Asbestos and Environmental

 

 

46.4

 

 

 

53.9

 

Risk management

 

 

252.2

 

 

 

257.1

 

Run-off reinsurance lines

 

 

3.0

 

 

 

4.1

 

Other run-off lines

 

 

4.7

 

 

 

3.4

 

Total Run-off Lines

 

$

306.3

 

 

$

318.5

 

 
Total Gross Reserves for Asbestos Exposure

The following table represents the total gross reserves for our asbestos exposure:

 

 

 

December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Direct written

 

 

 

 

 

 

 

 

 

 

 

 

Case reserves

 

$

2.0

 

 

$

2.5

 

 

$

1.7

 

Unallocated loss adjustment expense ("ULAE")

 

 

0.5

 

 

 

1.0

 

 

 

1.3

 

Incurred but not reported ("IBNR")

 

 

8.2

 

 

 

7.6

 

 

 

6.4

 

Total direct written reserves

 

 

10.7

 

 

 

11.1

 

 

 

9.4

 

Assumed domestic

 

 

 

 

 

 

 

 

 

 

 

 

Case reserves

 

 

12.2

 

 

 

13.2

 

 

 

15.7

 

ULAE

 

 

0.8

 

 

 

1.6

 

 

 

2.2

 

IBNR

 

 

13.7

 

 

 

15.8

 

 

 

15.8

 

Total assumed domestic reserves

 

 

26.7

 

 

 

30.6

 

 

 

33.7

 

Assumed London

 

 

 

 

 

 

 

 

 

 

 

 

Case reserves

 

 

4.0

 

 

 

4.7

 

 

 

5.8

 

ULAE

 

 

—

 

 

 

0.2

 

 

 

0.4

 

IBNR

 

 

1.4

 

 

 

1.2

 

 

 

1.4

 

Total assumed London reserves

 

 

5.4

 

 

 

6.1

 

 

 

7.6

 

Total asbestos reserves

 

$

42.8

 

 

$

47.8

 

 

$

50.7

 

 
Run Off Lines [Member]  
Net Under writing Results for Run-Off Lines

The following table presents our net underwriting results for Run-off Lines:

 

 

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Asbestos and Environmental:

 

 

 

 

 

 

 

 

 

 

 

 

Reinsurance assumed

 

$

(1.0

)

 

$

(8.3

)

 

$

(3.8

)

Other

 

 

(3.4

)

 

 

(5.0

)

 

 

(7.2

)

Total Asbestos and Environmental

 

 

(4.4

)

 

 

(13.3

)

 

 

(11.0

)

Risk management

 

 

(8.2

)

 

 

(15.5

)

 

 

(5.9

)

Run-off reinsurance lines

 

 

2.0

 

 

 

(1.5

)

 

 

(1.9

)

Other run-off lines

 

 

(3.5

)

 

 

(0.7

)

 

 

(0.8

)

Total Run-off Lines

 

$

(14.1

)

 

$

(31.0

)

 

$

(19.6

)

 
v3.3.1.900
Statutory Accounting Principles (Tables)
 12 Months Ended
Dec. 31, 2015
Statutory Accounting Principles [Abstract]  
Schedule Of Statutory Net Income And Capital And Surplus [Table Text Block]

The statutory capital and surplus for our principal operating subsidiaries was as follows:

 

Statutory capital and surplus (1)

 

December 31,

 

(in millions)

 

2015

 

 

2014

 

Bermuda

 

$

1,260.1

 

 

$

1,261.1

 

United Kingdom (2)

 

 

232.8

 

 

 

224.5

 

United States

 

 

854.5

 

 

 

790.4

 

 

(1) 

Such amounts include ownership interests in affiliate insurance and reinsurance subsidiaries.

(2) 

Capital on deposit with Lloyd’s in U.S. Dollars

Statutory Net Income (Loss) for Principal Operating Subsidiaries

The statutory net income (loss) for our principal operating subsidiaries was as follows:

 

Statutory net income (loss) (1)

 

For the Years Ended December 31,

 

(in millions)

 

2015

 

 

2014

 

 

2013

 

Bermuda

 

$

182.2

 

 

$

128.2

 

 

$

124.2

 

United Kingdom (2)

 

 

34.8

 

 

 

28.7

 

 

 

42.3

 

United States

 

 

94.4

 

 

 

117.7

 

 

 

117.4

 

 

(1) 

Such amounts include ownership interests in affiliate insurance and reinsurance subsidiaries.

(2) 

In U.S. Dollars

v3.3.1.900
Unaudited Quarterly Financial Data (Tables)
 12 Months Ended
Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Data

(in millions, except per share amounts)

 

1st Quarter

 

 

2nd Quarter

 

 

3rd Quarter

 

 

4th Quarter

 

 

Year

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

371.4

 

 

$

373.1

 

 

$

371.0

 

 

$

369.1

 

 

$

1,484.6

 

Net income before income taxes

 

 

62.4

 

 

 

34.7

 

 

 

36.2

 

 

 

44.2

 

 

 

177.5

 

Net income

 

 

58.8

 

 

 

27.9

 

 

 

35.3

 

 

 

41.2

 

 

 

163.2

 

Net income per common share :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

2.09

 

 

$

1.00

 

 

$

1.27

 

 

$

1.48

 

 

$

5.84

 

Diluted*

 

$

2.05

 

 

$

0.98

 

 

$

1.24

 

 

$

1.44

 

 

$

5.72

 

Comprehensive income (loss)

 

$

36.8

 

 

$

18.9

 

 

$

(18.3

)

 

$

29.2

 

 

$

66.6

 

 

(in millions, except per share amounts)

 

1st Quarter

 

 

2nd Quarter

 

 

3rd Quarter

 

 

4th Quarter

 

 

Year

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

360.1

 

 

$

375.2

 

 

$

371.3

 

 

$

412.1

 

 

$

1,518.7

 

Net income before income taxes

 

 

42.7

 

 

 

44.7

 

 

 

48.3

 

 

 

80.3

 

 

 

216.0

 

Net income

 

 

40.2

 

 

 

38.6

 

 

 

44.7

 

 

 

59.7

 

 

 

183.2

 

Net income per common share :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

1.38

 

 

$

1.34

 

 

$

1.57

 

 

$

2.11

 

 

$

6.39

 

Diluted*

 

$

1.36

 

 

$

1.32

 

 

$

1.54

 

 

$

2.07

 

 

$

6.27

 

Comprehensive income

 

$

41.3

 

 

$

64.1

 

 

$

6.8

 

 

$

31.3

 

 

$

143.5

 

 

*

Basic and diluted net income per common share are computed independently for each quarter and full year based on the respective average number of common shares outstanding; therefore, the sum of the quarterly net income per common share data may not equal the net income per common share for the year.

v3.3.1.900
Information Provided in Connection with Outstanding Debt of Subsidiaries (Tables)
 12 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2015

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

$

6.2

 

 

$

2,761.0

 

 

$

1,348.5

 

 

$

—

 

 

$

4,115.7

 

Cash

 

 

—

 

 

 

88.8

 

 

 

32.9

 

 

 

—

 

 

 

121.7

 

Accrued investment income

 

 

—

 

 

 

16.4

 

 

 

5.2

 

 

 

—

 

 

 

21.6

 

Premiums receivable

 

 

—

 

 

 

166.4

 

 

 

238.1

 

 

 

—

 

 

 

404.5

 

Reinsurance recoverables

 

 

—

 

 

 

1,212.2

 

 

 

(91.1

)

 

 

—

 

 

 

1,121.1

 

Goodwill and other intangible assets, net

 

 

—

 

 

 

129.8

 

 

 

95.7

 

 

 

—

 

 

 

225.5

 

Current income taxes receivable, net

 

 

—

 

 

 

4.7

 

 

 

6.9

 

 

 

—

 

 

 

11.6

 

Deferred acquisition costs, net

 

 

—

 

 

 

58.2

 

 

 

74.2

 

 

 

—

 

 

 

132.4

 

Ceded unearned premiums

 

 

—

 

 

 

125.8

 

 

 

125.0

 

 

 

—

 

 

 

250.8

 

Other assets

 

 

8.2

 

 

 

156.2

 

 

 

60.8

 

 

 

—

 

 

 

225.2

 

Due (to) from affiliates

 

 

(17.5

)

 

 

(2.3

)

 

 

2.3

 

 

 

17.5

 

 

 

—

 

Intercompany note receivable

 

 

—

 

 

 

49.8

 

 

 

(49.8

)

 

 

—

 

 

 

—

 

Investments in subsidiaries

 

 

1,715.9

 

 

 

—

 

 

 

—

 

 

 

(1,715.9

)

 

 

—

 

Total assets

 

$

1,712.8

 

 

$

4,767.0

 

 

$

1,848.7

 

 

$

(1,698.4

)

 

$

6,630.1

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves for losses and loss adjustment expenses

 

$

—

 

 

$

2,194.1

 

 

$

929.5

 

 

$

—

 

 

$

3,123.6

 

Unearned premiums

 

 

—

 

 

 

501.5

 

 

 

385.2

 

 

 

—

 

 

 

886.7

 

Funds held and ceded reinsurance payable, net

 

 

—

 

 

 

702.6

 

 

 

(312.6

)

 

 

—

 

 

 

390.0

 

Long-term debt

 

 

28.4

 

 

 

288.7

 

 

 

54.6

 

 

 

—

 

 

 

371.7

 

Deferred tax liabilities, net

 

 

—

 

 

 

11.9

 

 

 

11.7

 

 

 

—

 

 

 

23.6

 

Accrued underwriting expenses and other liabilities

 

 

16.3

 

 

 

95.4

 

 

 

54.7

 

 

 

—

 

 

 

166.4

 

Total liabilities

 

 

44.7

 

 

 

3,794.2

 

 

 

1,123.1

 

 

 

—

 

 

 

4,962.0

 

Total shareholders' equity

 

 

1,668.1

 

 

 

972.8

 

 

 

725.6

 

 

 

(1,698.4

)

 

 

1,668.1

 

Total liabilities and shareholders' equity

 

$

1,712.8

 

 

$

4,767.0

 

 

$

1,848.7

 

 

$

(1,698.4

)

 

$

6,630.1

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

 

 

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2014

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

$

0.7

 

 

$

2,841.5

 

 

$

1,255.7

 

 

$

—

 

 

$

4,097.9

 

Cash

 

 

—

 

 

 

49.3

 

 

 

31.7

 

 

 

—

 

 

 

81.0

 

Accrued investment income

 

 

—

 

 

 

17.8

 

 

 

4.3

 

 

 

—

 

 

 

22.1

 

Premiums receivable

 

 

—

 

 

 

154.6

 

 

 

199.0

 

 

 

—

 

 

 

353.6

 

Reinsurance recoverables

 

 

—

 

 

 

1,173.6

 

 

 

(176.4

)

 

 

—

 

 

 

997.2

 

Goodwill and other intangible assets, net

 

 

—

 

 

 

131.7

 

 

 

99.1

 

 

 

—

 

 

 

230.8

 

Current income taxes receivable, net

 

 

—

 

 

 

10.1

 

 

 

4.8

 

 

 

—

 

 

 

14.9

 

Deferred acquisition costs, net

 

 

—

 

 

 

58.0

 

 

 

66.6

 

 

 

—

 

 

 

124.6

 

Ceded unearned premiums

 

 

—

 

 

 

98.5

 

 

 

109.1

 

 

 

—

 

 

 

207.6

 

Other assets

 

 

9.6

 

 

 

174.1

 

 

 

67.9

 

 

 

(25.0

)

 

 

226.6

 

Due (to) from affiliates

 

 

2.9

 

 

 

(19.8

)

 

 

19.8

 

 

 

(2.9

)

 

 

—

 

Intercompany note receivable

 

 

—

 

 

 

72.0

 

 

 

(72.0

)

 

 

—

 

 

 

—

 

Investments in subsidiaries

 

 

1,698.0

 

 

 

—

 

 

 

—

 

 

 

(1,698.0

)

 

 

—

 

Total assets

 

$

1,711.2

 

 

$

4,761.4

 

 

$

1,609.6

 

 

$

(1,725.9

)

 

$

6,356.3

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves for losses and loss adjustment expenses

 

$

—

 

 

$

2,136.4

 

 

$

906.0

 

 

$

—

 

 

$

3,042.4

 

Unearned premiums

 

 

—

 

 

 

448.9

 

 

 

368.3

 

 

 

—

 

 

 

817.2

 

Funds held and ceded reinsurance payable, net

 

 

—

 

 

 

675.1

 

 

 

(441.3

)

 

 

—

 

 

 

233.8

 

Long-term debt

 

 

49.0

 

 

 

288.7

 

 

 

61.4

 

 

 

(20.6

)

 

 

378.5

 

Deferred tax liabilities, net

 

 

—

 

 

 

41.2

 

 

 

11.8

 

 

 

—

 

 

 

53.0

 

Accrued underwriting expenses and other liabilities

 

 

15.5

 

 

 

104.2

 

 

 

65.0

 

 

 

—

 

 

 

184.7

 

Total liabilities

 

 

64.5

 

 

 

3,694.5

 

 

 

971.2

 

 

 

(20.6

)

 

 

4,709.6

 

Total shareholders' equity

 

 

1,646.7

 

 

 

1,066.9

 

 

 

638.4

 

 

 

(1,705.3

)

 

 

1,646.7

 

Total liabilities and shareholders' equity

 

$

1,711.2

 

 

$

4,761.4

 

 

$

1,609.6

 

 

$

(1,725.9

)

 

$

6,356.3

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

Condensed Consolidating Statement of Income

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2015

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Premiums and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned premiums

 

$

—

 

 

$

497.3

 

 

$

874.6

 

 

$

—

 

 

$

1,371.9

 

Net investment income

 

 

40.1

 

 

 

56.0

 

 

 

30.5

 

 

 

(41.0

)

 

 

85.6

 

Net realized investment and other gains

 

 

—

 

 

 

34.8

 

 

 

(7.7

)

 

 

—

 

 

 

27.1

 

Total revenue

 

 

40.1

 

 

 

588.1

 

 

 

897.4

 

 

 

(41.0

)

 

 

1,484.6

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

—

 

 

 

304.2

 

 

 

461.9

 

 

 

—

 

 

 

766.1

 

Underwriting, acquisition and insurance

   expenses

 

 

19.0

 

 

 

198.4

 

 

 

322.2

 

 

 

—

 

 

 

539.6

 

Interest expense

 

 

1.5

 

 

 

15.3

 

 

 

2.2

 

 

 

—

 

 

 

19.0

 

Fee and other expense, net

 

 

—

 

 

 

4.3

 

 

 

(3.6

)

 

 

—

 

 

 

0.7

 

Foreign currency exchange loss (gains)

 

 

—

 

 

 

1.0

 

 

 

(19.3

)

 

 

—

 

 

 

(18.3

)

Total expenses

 

 

20.5

 

 

 

523.2

 

 

 

763.4

 

 

 

—

 

 

 

1,307.1

 

Income before income taxes

 

 

19.6

 

 

 

64.9

 

 

 

134.0

 

 

 

(41.0

)

 

 

177.5

 

Provision for income taxes

 

 

—

 

 

 

12.9

 

 

 

1.4

 

 

 

—

 

 

 

14.3

 

Net income before equity in earnings of

   subsidiaries

 

 

19.6

 

 

 

52.0

 

 

 

132.6

 

 

 

(41.0

)

 

 

163.2

 

Equity in undistributed earnings of

   subsidiaries

 

 

143.6

 

 

 

—

 

 

 

—

 

 

 

(143.6

)

 

 

—

 

Net income

 

$

163.2

 

 

$

52.0

 

 

$

132.6

 

 

$

(184.6

)

 

$

163.2

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

 

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2014

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Premiums and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned premiums

 

$

—

 

 

$

461.0

 

 

$

877.1

 

 

$

—

 

 

$

1,338.1

 

Net investment income

 

 

40.5

 

 

 

56.7

 

 

 

(10.6

)

 

 

—

 

 

 

86.6

 

Net realized investment and other gains

 

 

2.0

 

 

 

86.9

 

 

 

7.1

 

 

 

(2.0

)

 

 

94.0

 

Total revenue

 

 

42.5

 

 

 

604.6

 

 

 

873.6

 

 

 

(2.0

)

 

 

1,518.7

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

—

 

 

 

285.6

 

 

 

461.8

 

 

 

—

 

 

 

747.4

 

Underwriting, acquisition and insurance

   expenses

 

 

17.3

 

 

 

199.9

 

 

 

322.0

 

 

 

—

 

 

 

539.2

 

Interest expense

 

 

2.3

 

 

 

15.2

 

 

 

2.7

 

 

 

(0.3

)

 

 

19.9

 

Fee and other expense, net

 

 

—

 

 

 

2.4

 

 

 

(1.8

)

 

 

—

 

 

 

0.6

 

Foreign currency exchange loss (gains)

 

 

—

 

 

 

0.4

 

 

 

(8.2

)

 

 

—

 

 

 

(7.8

)

Impairment of intangible assets

 

 

—

 

 

 

3.4

 

 

 

—

 

 

 

—

 

 

 

3.4

 

Total expenses

 

 

19.6

 

 

 

506.9

 

 

 

776.5

 

 

 

(0.3

)

 

 

1,302.7

 

Income before income taxes

 

 

22.9

 

 

 

97.7

 

 

 

97.1

 

 

 

(1.7

)

 

 

216.0

 

Provision for income taxes

 

 

—

 

 

 

27.5

 

 

 

5.3

 

 

 

—

 

 

 

32.8

 

Net income before equity in earnings of

   subsidiaries

 

 

22.9

 

 

 

70.2

 

 

 

91.8

 

 

 

(1.7

)

 

 

183.2

 

Equity in undistributed earnings of

   subsidiaries

 

 

160.3

 

 

 

—

 

 

 

—

 

 

 

(160.3

)

 

 

—

 

Net income

 

$

183.2

 

 

$

70.2

 

 

$

91.8

 

 

$

(162.0

)

 

$

183.2

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

 

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2013

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Premiums and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned premiums

 

$

—

 

 

$

439.9

 

 

$

863.9

 

 

$

—

 

 

$

1,303.8

 

Net investment income

 

 

84.5

 

 

 

73.4

 

 

 

(57.9

)

 

 

—

 

 

 

100.0

 

Net realized investment and other gains

 

 

—

 

 

 

72.2

 

 

 

(0.9

)

 

 

—

 

 

 

71.3

 

Total revenue

 

 

84.5

 

 

 

585.5

 

 

 

805.1

 

 

 

—

 

 

 

1,475.1

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

—

 

 

 

268.6

 

 

 

473.4

 

 

 

—

 

 

 

742.0

 

Other reinsurance-related expenses

 

 

—

 

 

 

—

 

 

 

19.2

 

 

 

—

 

 

 

19.2

 

Underwriting, acquisition and insurance

   expenses

 

 

27.4

 

 

 

176.9

 

 

 

306.5

 

 

 

—

 

 

 

510.8

 

Interest expense

 

 

3.3

 

 

 

15.2

 

 

 

2.9

 

 

 

(1.2

)

 

 

20.2

 

Fee and other expense, net

 

 

—

 

 

 

4.1

 

 

 

0.8

 

 

 

—

 

 

 

4.9

 

Foreign currency exchange gain

 

 

—

 

 

 

(0.3

)

 

 

(1.4

)

 

 

—

 

 

 

(1.7

)

Total expenses

 

 

30.7

 

 

 

464.5

 

 

 

801.4

 

 

 

(1.2

)

 

 

1,295.4

 

Income before income taxes

 

 

53.8

 

 

 

121.0

 

 

 

3.7

 

 

 

1.2

 

 

 

179.7

 

Provision for income taxes

 

 

—

 

 

 

34.1

 

 

 

2.4

 

 

 

—

 

 

 

36.5

 

Net income before equity in earnings of

   subsidiaries

 

 

53.8

 

 

 

86.9

 

 

 

1.3

 

 

 

1.2

 

 

 

143.2

 

Equity in undistributed earnings of

   subsidiaries

 

 

89.4

 

 

 

—

 

 

 

—

 

 

 

(89.4

)

 

 

—

 

Net income

 

$

143.2

 

 

$

86.9

 

 

$

1.3

 

 

$

(88.2

)

 

$

143.2

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR YEAR ENDED DECEMBER 31, 2015

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Net cash flows from operating activities

 

$

32.7

 

 

$

116.4

 

 

$

133.5

 

 

$

—

 

 

$

282.6

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales of investments

 

 

—

 

 

 

631.1

 

 

 

336.8

 

 

 

—

 

 

 

967.9

 

Maturities and mandatory calls of fixed

   maturity investments

 

 

—

 

 

 

681.8

 

 

 

162.1

 

 

 

—

 

 

 

843.9

 

Purchases of investments

 

 

—

 

 

 

(1,384.5

)

 

 

(649.6

)

 

 

—

 

 

 

(2,034.1

)

Change in short-term investments and

   foreign regulatory deposits

 

 

0.9

 

 

 

14.9

 

 

 

33.8

 

 

 

—

 

 

 

49.6

 

Settlements of foreign currency exchange

   forward contracts

 

 

1.5

 

 

 

—

 

 

 

(11.6

)

 

 

—

 

 

 

(10.1

)

Issuance of intercompany note, net

 

 

—

 

 

 

7.5

 

 

 

(7.5

)

 

 

—

 

 

 

—

 

Redemption of PXRE Capital Trust V

 

 

—

 

 

 

18.0

 

 

 

(18.0

)

 

 

—

 

 

 

—

 

Purchases of fixed assets and other, net

 

 

3.8

 

 

 

(16.6

)

 

 

2.0

 

 

 

—

 

 

 

(10.8

)

Cash provided (used) by investing activities

 

 

6.2

 

 

 

(47.8

)

 

 

(152.0

)

 

 

—

 

 

 

(193.6

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redemption of PXRE Capital Trust V

 

 

(18.0

)

 

 

—

 

 

 

18.0

 

 

 

—

 

 

 

—

 

Activity under stock incentive plans

 

 

1.8

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1.8

 

Repurchase of Company's common shares

 

 

—

 

 

 

(29.7

)

 

 

—

 

 

 

—

 

 

 

(29.7

)

Excess tax expense from share-based

   payment arrangements

 

 

—

 

 

 

0.6

 

 

 

—

 

 

 

—

 

 

 

0.6

 

Payment of cash dividend to common

   shareholders

 

 

(22.7

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(22.7

)

Cash used (provided) by financing activities

 

 

(38.9

)

 

 

(29.1

)

 

 

18.0

 

 

 

—

 

 

 

(50.0

)

Effect of exchange rate changes on cash

 

 

—

 

 

 

—

 

 

 

1.7

 

 

 

—

 

 

 

1.7

 

Change in cash

 

 

—

 

 

 

39.5

 

 

 

1.2

 

 

 

—

 

 

 

40.7

 

Cash, beginning of year

 

 

—

 

 

 

49.3

 

 

 

31.7

 

 

 

—

 

 

 

81.0

 

Cash, end of year

 

$

—

 

 

$

88.8

 

 

$

32.9

 

 

$

—

 

 

$

121.7

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

 

 

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR YEAR ENDED DECEMBER 31, 2014

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Net cash flows from operating activities

 

$

25.7

 

 

$

43.2

 

 

$

37.2

 

 

$

24.4

 

 

$

130.5

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales of investments

 

 

—

 

 

 

803.8

 

 

 

458.2

 

 

 

—

 

 

 

1,262.0

 

Maturities and mandatory calls of fixed

   maturity investments

 

 

—

 

 

 

192.1

 

 

 

130.9

 

 

 

—

 

 

 

323.0

 

Purchases of investments

 

 

—

 

 

 

(1,126.1

)

 

 

(610.7

)

 

 

—

 

 

 

(1,736.8

)

Change in short-term investments and

   foreign regulatory deposits

 

 

0.5

 

 

 

76.0

 

 

 

20.0

 

 

 

—

 

 

 

96.5

 

Settlements of foreign currency exchange

   forward contracts

 

 

1.3

 

 

 

—

 

 

 

(2.4

)

 

 

—

 

 

 

(1.1

)

Issuance of intercompany note, net

 

 

—

 

 

 

14.5

 

 

 

(7.6

)

 

 

(6.9

)

 

 

—

 

Purchases of fixed assets and other, net

 

 

(7.0

)

 

 

(35.5

)

 

 

(16.0

)

 

 

(6.4

)

 

 

(64.9

)

Cash (used) provided by investing activities

 

 

(5.2

)

 

 

(75.2

)

 

 

(27.6

)

 

$

(13.3

)

 

 

(121.3

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings under intercompany note, net

 

 

(6.9

)

 

 

—

 

 

 

—

 

 

 

6.9

 

 

 

—

 

Activity under stock incentive plans

 

 

4.6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4.6

 

Redemption of trust preferred securities, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(18.0

)

 

 

(18.0

)

Payment on note payable

 

 

—

 

 

 

(0.1

)

 

 

—

 

 

 

—

 

 

 

(0.1

)

Repurchase of Company's common shares

 

 

—

 

 

 

(50.8

)

 

 

—

 

 

 

—

 

 

 

(50.8

)

Excess tax expense from share-based payment

   arrangements

 

 

—

 

 

 

0.1

 

 

 

—

 

 

 

—

 

 

 

0.1

 

Payment of cash dividend to common

   shareholders

 

 

(18.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(18.2

)

Cash provided (used) by financing activities

 

 

(20.5

)

 

 

(50.8

)

 

 

—

 

 

$

(11.1

)

 

 

(82.4

)

Effect of exchange rate changes on cash

 

 

—

 

 

 

—

 

 

 

(3.2

)

 

 

—

 

 

 

(3.2

)

Change in cash

 

 

—

 

 

 

(82.8

)

 

 

6.4

 

 

 

—

 

 

 

(76.4

)

Cash, beginning of year

 

 

—

 

 

 

132.1

 

 

 

25.3

 

 

 

—

 

 

 

157.4

 

Cash, end of year

 

$

—

 

 

$

49.3

 

 

$

31.7

 

 

$

—

 

 

$

81.0

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.

 

 

 

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR YEAR ENDED DECEMBER 31, 2013

(in millions)

 

 

 

Argo Group

International

Holdings, Ltd

(Parent Guarantor)

 

 

Argo Group US, Inc.

and Subsidiaries

(Subsidiary Issuer)

 

 

Other Subsidiaries

and Eliminations (1)

 

 

Consolidating

Adjustments (2)

 

 

Total

 

Net cash flows from operating activities

 

$

63.2

 

 

$

62.5

 

 

$

(125.9

)

 

$

—

 

 

$

(0.2

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales of investments

 

 

—

 

 

 

1,130.2

 

 

 

836.1

 

 

 

—

 

 

 

1,966.3

 

Maturities and mandatory calls of fixed

   maturity investments

 

 

—

 

 

 

168.9

 

 

 

112.9

 

 

 

—

 

 

 

281.8

 

Purchases of investments

 

 

—

 

 

 

(1,156.7

)

 

 

(819.1

)

 

 

—

 

 

 

(1,975.8

)

Change in short-term investments and

   foreign regulatory deposits

 

 

(1.4

)

 

 

(119.1

)

 

 

(32.5

)

 

 

—

 

 

 

(153.0

)

Settlements of foreign currency exchange

   forward contracts

 

 

0.7

 

 

 

—

 

 

 

(4.6

)

 

 

—

 

 

 

(3.9

)

Issuance of intercompany note, net

 

 

—

 

 

 

35.0

 

 

 

14.3

 

 

 

(49.3

)

 

 

—

 

Purchases of fixed assets and other, net

 

 

—

 

 

 

(16.3

)

 

 

21.7

 

 

 

—

 

 

 

5.4

 

Cash provided (used) by investing activities

 

 

(0.7

)

 

 

42.0

 

 

 

128.8

 

 

 

(49.3

)

 

 

120.8

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings under intercompany note, net

 

 

(49.3

)

 

 

—

 

 

 

—

 

 

 

49.3

 

 

 

—

 

Proceeds from issuance of senior

   unsecured fixed rate notes

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Redemption of trust preferred securities, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Activity under stock incentive plans

 

 

2.6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2.6

 

Repurchase of Company's common shares

 

 

—

 

 

 

(46.5

)

 

 

—

 

 

 

—

 

 

 

(46.5

)

Excess tax benefit from share-based payment

   arrangements

 

 

—

 

 

 

0.2

 

 

 

—

 

 

 

—

 

 

 

0.2

 

Payment of cash dividend to common

   shareholders

 

 

(15.8

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(15.8

)

Cash provided (used) by financing activities

 

 

(62.5

)

 

 

(46.3

)

 

 

—

 

 

 

49.3

 

 

 

(59.5

)

Effect of exchange rate changes on cash

 

 

—

 

 

 

—

 

 

 

0.5

 

 

 

—

 

 

 

0.5

 

Change in cash

 

 

—

 

 

 

58.2

 

 

 

3.4

 

 

 

—

 

 

 

61.6

 

Cash, beginning of year

 

 

—

 

 

 

73.9

 

 

 

21.9

 

 

 

—

 

 

 

95.8

 

Cash, end of year

 

$

—

 

 

$

132.1

 

 

$

25.3

 

 

$

—

 

 

$

157.4

 

 

(1) 

Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.

(2) 

Includes all Argo Group parent company eliminations.
v3.3.1.900
Business and Significant Accounting Policies - Additional Information (Detail)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Feb. 17, 2015
shares
Dec. 31, 2011
Contract
Dec. 31, 2014
USD ($)
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
USD ($)
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Dec. 31, 2013
USD ($)
shares
Dec. 31, 2009
Trust
Institution
May. 07, 2013
Business And Significant Accounting Policies [Line Items]                              
Percentage of contractual participation                     100.00%        
Number of Statutory Trusts | Trust                           12  
Number of Charitable Foundations | Institution                           2  
Stock dividend declared 10.00%           10.00%       10.00%   10.00%   10.00%
Additional stock issued as dividend | shares 2,554,506                       2,447,839    
Dividends declaration date Feb. 17, 2015   Nov. 04, 2014 Aug. 05, 2014 May 05, 2014 Feb. 18, 2014 Nov. 04, 2013 Aug. 06, 2013 May 07, 2013 Feb. 15, 2013     May 07, 2013    
Dividends payable date Mar. 16, 2015                       Jun. 17, 2013    
Dividend payable, date of record Mar. 02, 2015                       Jun. 03, 2013    
Short-term investments, maturity term                     1 year        
Percentage of investment portfolio in fair value from pricing service or broker                     1.00%        
Allowance for doubtful accounts     $ 5.2               $ 3.5 $ 5.2      
Reinsurance recoverables, allowance for doubtful accounts     3.4               3.2 3.4      
Estimated liability for return of premiums                     6.5 5.8      
Estimated amount of premiums receivables due                     $ 0.1 0.0      
Goodwill, Written off related to sale of operating unit                       1.6      
Indefinite-lived Intangible assets written-off                       1.8      
Weighted average useful life                     8 years 10 months 24 days        
Amortization expense                     $ 7.5 5.6 $ 6.1    
Estimated amortization expense for 2016                     5.6        
Estimated amortization expense for 2017                     4.8        
Estimated amortization expense for 2018                     2.2        
Estimated amortization expense for 2019                     0.4        
Estimated amortization expense for 2020                     0.0        
Accumulated depreciation for property and equipment     78.2               85.1 78.2      
Net book value of property and equipment     96.4               133.1 96.4      
Depreciation expense                     17.5 15.1 15.5    
Number of reinsurance contracts entered | Contract   1                          
Foreign currency translation adjustment     15.6               21.6 15.6      
Income taxes paid                     10.9 23.7 14.2    
Income taxes recovered     $ 0.1       $ 0.0       $ 11.7 0.1 $ 0.0    
Proceeds from sale of real estate                       $ 43.3      
Minimum [Member]                              
Business And Significant Accounting Policies [Line Items]                              
Property, Plant and Equipment, Useful Life                     3 years        
Maximum [Member]                              
Business And Significant Accounting Policies [Line Items]                              
Property, Plant and Equipment, Useful Life                     39 years        
Distribution Network [Member]                              
Business And Significant Accounting Policies [Line Items]                              
Weighted average useful life                     9 years 3 months 18 days        
Additional Lloyd's Capacity [Member]                              
Business And Significant Accounting Policies [Line Items]                              
Weighted average useful life                     5 years        
Other [Member]                              
Business And Significant Accounting Policies [Line Items]                              
Weighted average useful life                     9 years 1 month 6 days        
v3.3.1.900
Business and Significant Accounting Policies - Summary of Receivables (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Organization Consolidation And Presentation Of Financial Statements [Abstract]      
Premiums receivable $ 1.0 $ 1.1 $ 0.2
Reinsurance recoverables 0.2 0.5 0.0
Net written off (recovered) $ 1.2 $ 1.6 $ 0.2
v3.3.1.900
Business and Significant Accounting Policies - Intangible Assets and Accumulated Amortization (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 112.4 $ 111.6
Accumulated Amortization 39.1 33.0
Lloyd's Capacity [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 60.5 60.5
Accumulated Amortization 0.0 0.0
Distribution Network [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 45.5 44.8
Accumulated Amortization 33.2 27.9
Additional Lloyd's Capacity [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 4.8 4.8
Accumulated Amortization 4.6 3.9
Other [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 1.6 1.5
Accumulated Amortization $ 1.3 $ 1.2
v3.3.1.900
Business and Significant Accounting Policies - Supplemental Cash Flow Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Disclosure - Business and Significant Accounting Policies - Supplemental Cash Flow Information (Detail) [Line Items]      
Total interest paid $ 18.7 $ 19.7 $ 19.8
Senior Unsecured Fixed Rate Notes [Member]      
Disclosure - Business and Significant Accounting Policies - Supplemental Cash Flow Information (Detail) [Line Items]      
Total interest paid 9.3 9.3 9.3
Junior Subordinated Debentures [Member]      
Disclosure - Business and Significant Accounting Policies - Supplemental Cash Flow Information (Detail) [Line Items]      
Total interest paid 7.0 7.6 7.9
Other Indebtedness [Member]      
Disclosure - Business and Significant Accounting Policies - Supplemental Cash Flow Information (Detail) [Line Items]      
Total interest paid $ 2.4 $ 2.8 $ 2.6
v3.3.1.900
Investments - Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost $ 4,031.5 $ 3,889.2
Gross Unrealized Gains 189.6 256.2
Gross Unrealized Losses 105.4 47.5
Fair Value 4,115.7 4,097.9
Fixed Maturities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 2,971.0 2,817.2
Gross Unrealized Gains 43.1 64.6
Gross Unrealized Losses 86.8 41.1
Fair Value 2,927.3 2,840.7
Fixed Maturities [Member] | CLO [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost [1] 137.1 78.7
Gross Unrealized Gains [1] 0.2 0.2
Gross Unrealized Losses [1] 1.7 0.5
Fair Value [1] 135.6 78.4
Fixed Maturities [Member] | U.S. Governments [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 207.9 184.0
Gross Unrealized Gains 0.7 1.3
Gross Unrealized Losses 0.7 [2] 0.3
Fair Value 207.9 185.0
Fixed Maturities [Member] | Non-U.S. Governments [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 92.9 79.9
Gross Unrealized Gains 0.0 0.6
Gross Unrealized Losses 1.2 [2] 0.6
Fair Value 91.7 79.9
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 467.6 468.1
Gross Unrealized Gains 20.7 22.9
Gross Unrealized Losses 0.3 [3] 0.3
Fair Value 488.0 490.7
Fixed Maturities [Member] | Credit-Financial [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 533.3 508.1
Gross Unrealized Gains 6.1 12.3
Gross Unrealized Losses 3.5 2.3
Fair Value 535.9 518.1
Fixed Maturities [Member] | Credit-Industrial [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 524.2 493.7
Gross Unrealized Gains 5.4 9.4
Gross Unrealized Losses 11.7 3.5
Fair Value 517.9 499.6
Fixed Maturities [Member] | Credit-Utility [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 168.7 142.7
Gross Unrealized Gains 0.9 3.2
Gross Unrealized Losses 13.4 3.9
Fair Value 156.2 142.0
Fixed Maturities [Member] | CMO/MBS-Agency [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost [4] 126.5 168.0
Gross Unrealized Gains [4] 5.0 8.0
Gross Unrealized Losses [4] 0.5 0.7
Fair Value [4] 131.0 175.3
Fixed Maturities [Member] | CMO/MBS-Non Agency [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 11.0 13.2
Gross Unrealized Gains 0.6 0.8
Gross Unrealized Losses 0.1 0.0
Fair Value 11.5 14.0
Fixed Maturities [Member] | CMBS [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost [5] 182.2 178.6
Gross Unrealized Gains [5] 0.5 1.6
Gross Unrealized Losses [5] 1.5 [2] 0.2
Fair Value [5] 181.2 180.0
Fixed Maturities [Member] | ABS [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost [6] 111.4 142.7
Gross Unrealized Gains [6] 0.2 0.4
Gross Unrealized Losses [6] 0.7 0.5
Fair Value [6] 110.9 142.6
Fixed Maturities [Member] | Foreign Denominated: Governments [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 170.0 148.4
Gross Unrealized Gains 0.8 1.2
Gross Unrealized Losses 19.6 9.4
Fair Value 151.2 140.2
Fixed Maturities [Member] | Foreign Denominated: Credit [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 129.1 136.7
Gross Unrealized Gains 1.2 1.8
Gross Unrealized Losses 20.2 12.5
Fair Value 110.1 126.0
Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 24.1 29.5
Gross Unrealized Gains 0.1 0.2
Gross Unrealized Losses 2.3 [2] 2.5
Fair Value 21.9 27.2
Fixed Maturities [Member] | Foreign denominated: CLO [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 85.0 44.9
Gross Unrealized Gains 0.7 0.7
Gross Unrealized Losses 9.4 3.9
Fair Value 76.3 41.7
Equity Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 349.7 324.8
Gross Unrealized Gains 131.5 184.1
Gross Unrealized Losses 17.3 5.1
Fair Value 463.9 503.8
Other Investments [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 499.6 488.9
Gross Unrealized Gains 15.0 7.5
Gross Unrealized Losses 0.9 1.3
Fair Value 513.7 495.1
Short-Term Investments [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 211.2 258.3
Gross Unrealized Gains 0.0 0.0
Gross Unrealized Losses 0.4 0.0
Fair Value $ 210.8 $ 258.3
[1] Collateralized loan obligations (“CLO”)
[2] Unrealized losses one year or greater are less than $0.1 million.
[3] Unrealized losses less than one year are less than $0.1 million.
[4] Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”).
[5] Commercial mortgage-backed securities (“CMBS”).
[6] Asset-backed securities (“ABS”).
v3.3.1.900
Investments - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2015
USD ($)
Security
Dec. 31, 2014
USD ($)
Dec. 31, 2013
USD ($)
Schedule Of Investments [Line Items]      
Fair value of investments, assets managed on behalf of the trade capital providers $ 95,300,000 $ 75,200,000  
Number of securities in an unrealized loss position, total | Security 6,941    
Number of securities in an unrealized loss position for less than one year | Security 3,410    
Number of securities in an unrealized loss position for a period of one year or greater | Security 205    
Amortized Cost $ 4,031,500,000 3,889,200,000  
Fair Value 4,115,700,000 4,097,900,000  
Reported loss expense reserve 29,300,000 43,600,000  
Securities pledged to Lloyd's 202,500,000 217,900,000  
Transfers between Level 1 and Level 2 securities 0 0  
Transfers between Level 2 and Level 1 securities 0 0  
Securities Pledged as Collateral [Member]      
Schedule Of Investments [Line Items]      
Pledged assets separately reported, securities pledged under letters of credit facilities, at amortized cost 34,900,000 55,000,000  
Pledged assets separately reported, securities pledged under letters of credit facilities, at fair value 35,000,000 55,300,000  
Fixed Maturities [Member]      
Schedule Of Investments [Line Items]      
Other-than-temporary losses 2,200,000 1,200,000 $ 6,000,000
Amortized Cost 2,971,000,000 2,817,200,000  
Fair Value 2,927,300,000 2,840,700,000  
Equity Securities [Member]      
Schedule Of Investments [Line Items]      
Other-than-temporary losses 9,700,000 1,100,000 $ 1,800,000
Amortized Cost 349,700,000 324,800,000  
Fair Value 463,900,000 503,800,000  
Deposit with Various U.S. Canadian Insurance and Other Agencies [Member] | United States [Member]      
Schedule Of Investments [Line Items]      
Amortized Cost 187,100,000    
Fair Value $ 192,800,000    
Deposit with Various U.S. Insurance and Other Agencies [Member] | United States [Member]      
Schedule Of Investments [Line Items]      
Amortized Cost   186,600,000  
Fair Value   $ 194,200,000  
v3.3.1.900
Investments - Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity (Detail)
$ in Millions
Dec. 31, 2015
USD ($)
Investments Debt And Equity Securities [Abstract]  
Amortized Cost, Due in one year or less $ 239.5
Amortized Cost, Due after one year through five years 1,394.6
Amortized Cost, Due after five years through ten years 481.2
Amortized Cost, Thereafter 178.4
Amortized Cost, Structured securities 677.3
Amortized Cost, Total 2,971.0
Fair Value, Due in one year or less 226.5
Fair Value, Due after one year through five years 1,373.5
Fair Value, Due after five years through ten years 475.7
Fair Value, Thereafter 183.2
Fair Value, Structured securities 668.4
Fair Value, Total $ 2,927.3
v3.3.1.900
Investments - Schedule of Carrying Value and Unfunded Investment Commitments of Other Invested Assets Portfolio (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Schedule Of Investments [Line Items]    
Carrying Value $ 4,115.7 $ 4,097.9
Hedge funds [Member]    
Schedule Of Investments [Line Items]    
Carrying Value 146.9 153.2
Unfunded Commitments 0.0 0.0
Private equity [Member]    
Schedule Of Investments [Line Items]    
Carrying Value 144.1 123.6
Unfunded Commitments 90.2 72.9
Long only funds [Member]    
Schedule Of Investments [Line Items]    
Carrying Value 200.0 200.7
Unfunded Commitments 0.0 0.0
Other Investments [Member]    
Schedule Of Investments [Line Items]    
Carrying Value 22.7 17.6
Unfunded Commitments 0.0 0.0
Other invested assets [Member]    
Schedule Of Investments [Line Items]    
Carrying Value 513.7 495.1
Unfunded Commitments $ 90.2 $ 72.9
v3.3.1.900
Investments - Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year $ 1,779.4 $ 1,157.3
Unrealized Losses, Less Than One Year 96.2 45.3
Fair Value, One Year or Greater 120.8 108.1
Unrealized Losses, One Year or Greater 9.2 2.2
Fair Value, Total 1,900.2 1,265.4
Unrealized Losses, Total 105.4 47.5
Fixed Maturities [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 1,661.7 1,104.6
Unrealized Losses, Less Than One Year 77.6 38.9
Fair Value, One Year or Greater 120.8 108.1
Unrealized Losses, One Year or Greater 9.2 2.2
Fair Value, Total 1,782.5 1,212.7
Unrealized Losses, Total 86.8 41.1
Fixed Maturities [Member] | CLO [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 103.5 60.4
Unrealized Losses, Less Than One Year 1.4 0.5
Fair Value, One Year or Greater 12.5 0.0
Unrealized Losses, One Year or Greater 0.3 0.0
Fair Value, Total 116.0 60.4
Unrealized Losses, Total [1] 1.7 0.5
Fixed Maturities [Member] | U.S. Governments [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 138.3 [2] 55.0
Unrealized Losses, Less Than One Year 0.7 [2] 0.2
Fair Value, One Year or Greater 0.4 [2] 15.7
Unrealized Losses, One Year or Greater 0.0 [2] 0.1
Fair Value, Total 138.7 [2] 70.7
Unrealized Losses, Total 0.7 [2] 0.3
Fixed Maturities [Member] | Non-U.S. Governments [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 80.2 [2] 36.5
Unrealized Losses, Less Than One Year 1.2 [2] 0.4
Fair Value, One Year or Greater 2.2 [2] 5.2
Unrealized Losses, One Year or Greater 0.0 [2] 0.2
Fair Value, Total 82.4 [2] 41.7
Unrealized Losses, Total 1.2 [2] 0.6
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 9.3 [3] 10.4
Unrealized Losses, Less Than One Year 0.0 [3] 0.1
Fair Value, One Year or Greater 8.8 [3] 16.6
Unrealized Losses, One Year or Greater 0.3 [3] 0.2
Fair Value, Total 18.1 [3] 27.0
Unrealized Losses, Total 0.3 [3] 0.3
Fixed Maturities [Member] | Credit-Financial [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 308.7 195.7
Unrealized Losses, Less Than One Year 3.0 2.2
Fair Value, One Year or Greater 32.2 11.1
Unrealized Losses, One Year or Greater 0.5 0.1
Fair Value, Total 340.9 206.8
Unrealized Losses, Total 3.5 2.3
Fixed Maturities [Member] | Credit-Industrial [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 320.4 240.8
Unrealized Losses, Less Than One Year 9.6 3.3
Fair Value, One Year or Greater 28.7 12.2
Unrealized Losses, One Year or Greater 2.1 0.2
Fair Value, Total 349.1 253.0
Unrealized Losses, Total 11.7 3.5
Fixed Maturities [Member] | Credit-Utility [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 111.6 63.1
Unrealized Losses, Less Than One Year 8.5 3.8
Fair Value, One Year or Greater 16.4 1.9
Unrealized Losses, One Year or Greater 4.9 0.1
Fair Value, Total 128.0 65.0
Unrealized Losses, Total 13.4 3.9
Fixed Maturities [Member] | CMO/MBS-Agency [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 26.9 10.1
Unrealized Losses, Less Than One Year 0.2 0.1
Fair Value, One Year or Greater 8.4 19.2
Unrealized Losses, One Year or Greater 0.3 0.6
Fair Value, Total 35.3 29.3
Unrealized Losses, Total [4] 0.5 0.7
Fixed Maturities [Member] | CMO/MBS-Non Agency [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 7.0  
Unrealized Losses, Less Than One Year 0.1  
Fair Value, One Year or Greater 0.0  
Unrealized Losses, One Year or Greater 0.0  
Fair Value, Total 7.0  
Unrealized Losses, Total 0.1 0.0
Fixed Maturities [Member] | CMBS [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 126.3 [2] 49.3
Unrealized Losses, Less Than One Year 1.5 [2] 0.1
Fair Value, One Year or Greater 3.0 [2] 6.0
Unrealized Losses, One Year or Greater 0.0 [2] 0.1
Fair Value, Total 129.3 [2] 55.3
Unrealized Losses, Total [5] 1.5 [2] 0.2
Fixed Maturities [Member] | ABS [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 91.8 68.8
Unrealized Losses, Less Than One Year 0.4 0.2
Fair Value, One Year or Greater 6.8 8.1
Unrealized Losses, One Year or Greater 0.3 0.3
Fair Value, Total 98.6 76.9
Unrealized Losses, Total [6] 0.7 0.5
Fixed Maturities [Member] | Foreign Denominated: Governments [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 137.1 123.7
Unrealized Losses, Less Than One Year 19.5 9.3
Fair Value, One Year or Greater 0.3 11.2
Unrealized Losses, One Year or Greater 0.1 0.1
Fair Value, Total 137.4 134.9
Unrealized Losses, Total 19.6 9.4
Fixed Maturities [Member] | Foreign Denominated: Credit [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 104.3 122.3
Unrealized Losses, Less Than One Year 20.0 12.3
Fair Value, One Year or Greater 0.5 0.9
Unrealized Losses, One Year or Greater 0.2 0.2
Fair Value, Total 104.8 123.2
Unrealized Losses, Total 20.2 12.5
Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 20.8 [2] 26.8
Unrealized Losses, Less Than One Year 2.3 [2] 2.5
Fair Value, One Year or Greater 0.1 [2] 0.0
Unrealized Losses, One Year or Greater 0.0 [2] 0.0
Fair Value, Total 20.9 [2] 26.8
Unrealized Losses, Total 2.3 [2] 2.5
Fixed Maturities [Member] | Foreign denominated: CLO [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 75.5 41.7
Unrealized Losses, Less Than One Year 9.2 3.9
Fair Value, One Year or Greater 0.5 0.0
Unrealized Losses, One Year or Greater 0.2 0.0
Fair Value, Total 76.0 41.7
Unrealized Losses, Total 9.4 3.9
Equity Securities [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 112.4 53.6
Unrealized Losses, Less Than One Year 17.3 5.1
Fair Value, One Year or Greater 0.0 0.0
Unrealized Losses, One Year or Greater 0.0 0.0
Fair Value, Total 112.4 53.6
Unrealized Losses, Total 17.3 5.1
Other Investments [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year (0.5) (0.9)
Unrealized Losses, Less Than One Year 0.9 1.3
Fair Value, One Year or Greater 0.0 0.0
Unrealized Losses, One Year or Greater 0.0 0.0
Fair Value, Total (0.5) (0.9)
Unrealized Losses, Total 0.9 1.3
Short-Term Investments [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 5.8 0.0
Unrealized Losses, Less Than One Year 0.4 0.0
Fair Value, One Year or Greater 0.0 0.0
Unrealized Losses, One Year or Greater 0.0 0.0
Fair Value, Total 5.8 0.0
Unrealized Losses, Total $ 0.4 $ 0.0
[1] Collateralized loan obligations (“CLO”)
[2] Unrealized losses one year or greater are less than $0.1 million.
[3] Unrealized losses less than one year are less than $0.1 million.
[4] Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”).
[5] Commercial mortgage-backed securities (“CMBS”).
[6] Asset-backed securities (“ABS”).
v3.3.1.900
Investments - Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments (Parenthetical) (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Investments Debt And Equity Securities [Abstract]    
Unrealized losses less than one year $ 0.1 $ 0.1
Unrealized losses one year or greater $ 0.1 $ 0.1
v3.3.1.900
Investments - Schedule of Investment Income and Expenses (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Amortized Cost And Fair Value Debt Securities [Abstract]      
Interest and dividends on fixed maturities $ 78.2 $ 76.3 $ 87.7
Dividends on equity securities 16.3 15.8 17.7
Interest on short-term and other investments 7.2 5.3 5.0
Other 0.0 4.2 3.7
Investment income 101.7 101.6 114.1
Investment expenses (16.1) (15.0) (14.1)
Net investment income $ 85.6 $ 86.6 $ 100.0
v3.3.1.900
Investments - Schedule of Company's Gross Realized Investment Gains (Losses) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Schedule Of Investments [Line Items]      
Gross realized investment gains and other $ 113.6 $ 136.4 $ 131.6
Gross realized investment and other losses (86.5) (42.4) (60.3)
Net realized investment and other gains 27.1 94.0 71.3
Fixed Maturities [Member]      
Schedule Of Investments [Line Items]      
Gross realized investment gains and other 12.3 17.0 33.5
Gross realized investment and other losses (23.5) (12.2) (19.6)
Equity Securities [Member]      
Schedule Of Investments [Line Items]      
Gross realized investment gains and other 40.5 29.2 59.1
Gross realized investment and other losses (6.6) (0.6) (1.4)
Other Investments [Member]      
Schedule Of Investments [Line Items]      
Gross realized investment gains and other 59.3 44.8 38.9
Gross realized investment and other losses (42.7) (21.8) (30.8)
Short-Term Investments [Member]      
Schedule Of Investments [Line Items]      
Gross realized investment gains and other 1.2 0.1 0.1
Gross realized investment and other losses (1.8) (0.9) (0.7)
Other Assets [Member]      
Schedule Of Investments [Line Items]      
Gross realized investment gains and other 0.0 2.0 0.0
Gross realized investment and other losses 0.0 (4.6) 0.0
Real Estate Holdings [Member]      
Schedule Of Investments [Line Items]      
Gross realized investment gains and other 0.3 43.3 0.0
Other-Than-Temporary Impairment Losses on Fixed Maturities [Member]      
Schedule Of Investments [Line Items]      
Gross realized investment and other losses (2.2) (1.2) (6.0)
Other-Than-Temporary Impairment Losses on Equity Securities [Member]      
Schedule Of Investments [Line Items]      
Gross realized investment and other losses $ (9.7) $ (1.1) $ (1.8)
v3.3.1.900
Investments - Schedule of Realized Gains (Losses) and Changes in Unrealized of Appreciation(Depreciation) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Schedule Of Investments [Line Items]      
Realized before impairments $ 23.7 $ 62.3 $ 52.9
Realized - impairments (7.7) (1.5) (5.1)
Change in unrealized (90.7) (33.3) (40.2)
Realized before impairments, Tax Effects (15.3) (34.0) (26.2)
Realized - impairments, Tax Effects 4.2 0.8 2.7
Change in unrealized, Tax Effects 37.6 3.1 18.4
Fixed Maturities [Member]      
Schedule Of Investments [Line Items]      
Realized before impairments (11.2) 4.8 13.9
Realized - impairments (2.2) (1.2) (6.0)
Change in unrealized (65.3) (30.5) (102.6)
Equity Securities [Member]      
Schedule Of Investments [Line Items]      
Realized before impairments 33.9 28.6 57.7
Realized - impairments (9.7) (1.1) (1.8)
Change in unrealized (64.1) (8.4) 39.5
Other Investments [Member]      
Schedule Of Investments [Line Items]      
Realized before impairments 16.6 23.0 8.1
Realized - impairments 0.0 0.0 0.0
Change in unrealized 1.5 2.5 4.5
Other Assets [Member]      
Schedule Of Investments [Line Items]      
Realized before impairments (0.6) (3.4) (0.6)
Realized - impairments 0.0 0.0 0.0
Change in unrealized (0.4) 0.0 0.0
Real Estate Holdings [Member]      
Schedule Of Investments [Line Items]      
Realized before impairments 0.3 43.3 0.0
Realized - impairments 0.0 0.0 0.0
Change in unrealized $ 0.0 $ 0.0 $ 0.0
v3.3.1.900
Investments - Schedule of Fair Value of Foreign Currency Exchange Forward Contracts (Detail) - Foreign Currency Exchange Forward Contracts [Member] - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Schedule Of Investments [Line Items]    
Fair value of foreign currency exchange forward contracts $ 7.3 $ 1.1
Global Catastrophe [Member]    
Schedule Of Investments [Line Items]    
Fair value of foreign currency exchange forward contracts [1] 0.0 (0.6)
Currency Exposure [Member] | Canadian Dollar (CAD) [Member]    
Schedule Of Investments [Line Items]    
Fair value of foreign currency exchange forward contracts 5.2 (0.6)
Investment Exposure [Member] | Euro (EUR) [Member]    
Schedule Of Investments [Line Items]    
Fair value of foreign currency exchange forward contracts 2.9 2.3
Investment Portfolio Return Strategy [Member]    
Schedule Of Investments [Line Items]    
Fair value of foreign currency exchange forward contracts [2] 0.0 0.0
Total return strategy [Member]    
Schedule Of Investments [Line Items]    
Fair value of foreign currency exchange forward contracts [3] $ (0.8) $ 0.0
[1] Program not renewed in 2015.
[2] Program inception in 2015 and fair value is less than $0.1 million at December 31, 2015
[3] Program inception in 2015.
v3.3.1.900
Investments - Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts (Detail) - Foreign Currency Exchange Forward Contracts [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Schedule Of Investments [Line Items]      
Realized gains from foreign currency exchange forward contracts $ 36.5 $ 15.2 $ 7.8
Realized losses from foreign currency exchange forward contracts (21.3) (9.5) (10.4)
Net realized investment gains (losses) on foreign currency exchange forward contracts 15.2 5.7 (2.6)
Global Catastrophe [Member]      
Schedule Of Investments [Line Items]      
Realized gains from foreign currency exchange forward contracts 0.5 4.6 7.8
Realized losses from foreign currency exchange forward contracts (2.3) (4.9) (10.4)
Currency Exposure [Member] | Canadian Dollar (CAD) [Member]      
Schedule Of Investments [Line Items]      
Realized gains from foreign currency exchange forward contracts 21.0 4.6 0.0
Realized losses from foreign currency exchange forward contracts (7.3) (2.2) 0.0
Investment Exposure [Member] | Euro (EUR) [Member]      
Schedule Of Investments [Line Items]      
Realized gains from foreign currency exchange forward contracts 8.5 6.0 0.0
Realized losses from foreign currency exchange forward contracts (2.3) (2.4) 0.0
Investment Portfolio Return Strategy [Member]      
Schedule Of Investments [Line Items]      
Realized gains from foreign currency exchange forward contracts 5.1 0.0 0.0
Realized losses from foreign currency exchange forward contracts (7.2) 0.0 0.0
Total return strategy [Member]      
Schedule Of Investments [Line Items]      
Realized gains from foreign currency exchange forward contracts 1.4 0.0 0.0
Realized losses from foreign currency exchange forward contracts $ (2.2) $ 0.0 $ 0.0
v3.3.1.900
Investments - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value $ 4,115.7 $ 4,097.9
Fixed Maturities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 2,927.3 2,840.7
Fixed Maturities [Member] | CLO [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [1] 135.6 78.4
Fixed Maturities [Member] | U.S. Governments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 207.9 185.0
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 488.0 490.7
Fixed Maturities [Member] | Credit-Financial [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 535.9 518.1
Fixed Maturities [Member] | Credit-Industrial [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 517.9 499.6
Fixed Maturities [Member] | Credit-Utility [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 156.2 142.0
Fixed Maturities [Member] | CMO/MBS-Agency [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [2] 131.0 175.3
Fixed Maturities [Member] | CMO/MBS-Non Agency [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 11.5 14.0
Fixed Maturities [Member] | CMBS [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [3] 181.2 180.0
Fixed Maturities [Member] | ABS [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [4] 110.9 142.6
Fixed Maturities [Member] | Foreign Denominated: Governments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 151.2 140.2
Fixed Maturities [Member] | Foreign Denominated: Credit [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 110.1 126.0
Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 21.9 27.2
Fixed Maturities [Member] | Foreign denominated: CLO [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 76.3 41.7
Equity Securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 463.9 503.8
Other Investments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 513.7 495.1
Short-Term Investments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 210.8 258.3
Fair Value, Measurements, Recurring [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 3,699.2 3,700.1
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 811.6 841.0
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 2,886.9 2,858.2
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.7 0.9
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 2,927.3 2,840.7
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CLO [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 135.6 78.4
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 150.4 99.2
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | CLO [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 2,776.9 2,741.5
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Significant Other Observable Inputs (Level 2) [Member] | CLO [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 135.6 78.4
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Significant Unobservable Inputs (Level 3) [Member] | CLO [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 207.9 185.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 150.4 99.2
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 57.5 85.8
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Non-U.S. Governments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 91.7 79.9
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Non-U.S. Governments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Non-U.S. Governments [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 91.7 79.9
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Non-U.S. Governments [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 488.0 490.7
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 488.0 490.7
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Financial [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 535.9 518.1
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Financial [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Financial [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 535.9 518.1
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Financial [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Industrial [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 517.9 499.6
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Industrial [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Industrial [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 517.9 499.6
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Industrial [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Utility [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 156.2 142.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Utility [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Utility [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 156.2 142.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Utility [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Agency [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 131.0 175.3
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Agency [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Agency [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 131.0 175.3
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Agency [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Non Agency [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 11.5 14.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 11.5 14.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMBS [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 181.2 180.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMBS [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMBS [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 181.2 180.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMBS [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | ABS [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 110.9 142.6
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | ABS [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | ABS [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 110.9 142.6
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | ABS [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Governments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 151.2 140.2
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 151.2 140.2
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Credit [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 110.1 126.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 110.1 126.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 21.9 27.2
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 21.9 27.2
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: CLO [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 76.3 41.7
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: CLO [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: CLO [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 76.3 41.7
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: CLO [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 463.9 503.8
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 457.6 485.4
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 5.6 17.5
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.7 0.9
Fair Value, Measurements, Recurring [Member] | Other Investments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 97.2 97.3
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 97.2 97.3
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 210.8 258.3
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [5] 203.6 256.4
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [6] 7.2 1.9
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] $ 0.0 $ 0.0
[1] Collateralized loan obligations (“CLO”)
[2] Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”).
[3] Commercial mortgage-backed securities (“CMBS”).
[4] Asset-backed securities (“ABS”).
[5] Quoted prices in active markets for identical assets
[6] Significant other observable inputs
[7] Significant unobservable inputs
v3.3.1.900
Investments - Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3 (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]    
Beginning balance $ 0.9 $ 3.9
Transfers into Level 3 0.0 0.0
Transfers out of Level 3 0.0 0.0
Included in net income (loss) 0.0 0.0
Included in other comprehensive income (loss) 0.0 0.1
Purchases 0.0 0.0
Issuances 0.0 0.0
Sales (0.2) (0.5)
Settlements 0.0 (2.6)
Ending balance 0.7 0.9
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at end of period 0.0 0.0
Equity Securities [Member]    
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]    
Beginning balance 0.9 1.3
Transfers into Level 3 0.0 0.0
Transfers out of Level 3 0.0 0.0
Included in net income (loss) 0.0 0.0
Included in other comprehensive income (loss) 0.0 0.1
Purchases 0.0 0.0
Issuances 0.0 0.0
Sales (0.2) (0.5)
Settlements 0.0 0.0
Ending balance 0.7 0.9
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at end of period 0.0 0.0
Other Assets [Member]    
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]    
Beginning balance $ 0.0 2.6
Transfers into Level 3   0.0
Transfers out of Level 3   0.0
Included in net income (loss)   0.0
Included in other comprehensive income (loss)   0.0
Purchases   0.0
Issuances   0.0
Sales   0.0
Settlements   (2.6)
Ending balance   0.0
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at end of period   $ 0.0
v3.3.1.900
Reinsurance - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Reinsurance Disclosures [Abstract]      
Reinsurance recoverables, allowance for doubtful accounts $ 3.2 $ 3.4  
Amount of collateral under reinsurance agreement 421.6 359.4  
Paid loss recoverables in insurance recoverables 130.8 91.9  
Losses and loss adjustment expenses 766.1 747.4 $ 742.0
Net of amounts ceded to reinsurers $ 284.6 $ 246.6 $ 292.8
v3.3.1.900
Reinsurance - Schedule of Reinsurance Premium (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Premiums Written And Earned [Abstract]      
Direct written premiums $ 1,651.4 $ 1,585.5 $ 1,576.1
Reinsurance ceded to other companies (610.0) (537.5) (537.1)
Reinsurance assumed from other companies 360.7 319.9 312.3
Net written premiums 1,402.1 1,367.9 1,351.3
Direct earned premiums 1,602.2 1,551.8 1,541.0
Reinsurance ceded to other companies (563.7) (524.8) (533.7)
Reinsurance assumed from other companies 333.4 311.1 296.5
Net earned premiums $ 1,371.9 $ 1,338.1 $ 1,303.8
Percentage of reinsurance assumed to net earned premiums 24.30% 23.20% 22.70%
v3.3.1.900
Derivative Instruments - Additional Information (Detail)
$ in Millions
 1 Months Ended 12 Months Ended
Dec. 31, 2011
Contract
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Dec. 31, 2013
USD ($)
Jan. 01, 2012
USD ($)
Offsetting [Abstract]          
Number of reinsurance contracts | Contract 1        
Coverage amount         $ 100.0
Coverage period, months 24 months        
Other reinsurance-related expenses   $ 0.0 $ 0.0 $ 19.2  
v3.3.1.900
Reserves for Losses and Loss Adjustment Expenses - Reinsurance Recoverables (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Liability for Claims and Claims Adjustment Expense [Abstract]            
Net reserves beginning of the year $ 2,137.1 $ 2,107.6 $ 2,110.9      
Losses and LAE incurred during current calendar year, net of reinsurance:            
Current accident year 798.5 785.1 775.6      
Prior accident years (32.4) (37.7) (33.6)      
Losses and LAE incurred during calendar year, net of reinsurance 766.1 747.4 742.0      
Current accident year 169.0 185.9 199.3      
Prior accident years 564.5 550.8 554.2      
Losses and LAE payments made during current calendar year, net of reinsurance: 733.5 736.7 753.5      
Change in participation interest [1] (1.2) 37.8 10.4      
Foreign exchange adjustments (35.2) (19.0) (2.2)      
Net reserves - end of year 2,133.3 2,137.1 2,107.6      
Reinsurance recoverables on unpaid losses and LAE, end of year       $ (990.3) $ (905.3) $ (1,122.7)
Reserves for losses and loss adjustment expenses       3,123.6 3,042.4 3,230.3
Net reserves - end of period $ 2,137.1 $ 2,137.1 $ 2,107.6 $ 2,133.3 $ 2,137.1 $ 2,107.6
[1] Amount represents (decrease) increase in reserves due to change in our syndicate participation.
v3.3.1.900
Reserves for Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Schedule Of Reserves For Losses And Loss Adjustment Expenses [Line Items]      
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years $ 32.4 $ 37.7 $ 33.6
Workers compensation pension, maximum interest rate 3.50% 3.50% 3.50%
Workers compensation pension, unamortized discount $ 14.9 $ 17.6 $ 19.5
Excess and Surplus Lines [Member]      
Schedule Of Reserves For Losses And Loss Adjustment Expenses [Line Items]      
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years 32.1 47.4 43.9
Commercial Specialty [Member]      
Schedule Of Reserves For Losses And Loss Adjustment Expenses [Line Items]      
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years 9.1 6.8 1.1
International Specialty [Member]      
Schedule Of Reserves For Losses And Loss Adjustment Expenses [Line Items]      
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years 7.7 0.4  
Syndicate 1200 Segment [Member]      
Schedule Of Reserves For Losses And Loss Adjustment Expenses [Line Items]      
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years 10.3 21.1 6.2
Run Off Lines [Member]      
Schedule Of Reserves For Losses And Loss Adjustment Expenses [Line Items]      
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years $ 8.6 $ 24.4 $ 15.5
v3.3.1.900
Junior Subordinated Debentures - Additional Information (Detail) - USD ($)
 12 Months Ended
Jul. 16, 2014
Dec. 31, 2015
Dec. 31, 2014
Debt Instrument [Line Items]      
Junior subordinated debentures $ 20,000,000 $ 172,700,000 $ 172,700,000
Junior Subordinated Debentures [Member]      
Debt Instrument [Line Items]      
Debt Instrument, Redemption Price, Percentage   100.00% 100.00%
Percentage of debt securities redeemed as compare to principal amount 90.00%    
Redemption received on debt securities $ 18,200,000    
Recognition of pre-tax gain $ 2,000,000    
v3.3.1.900
Junior Subordinated Debentures - Schedule of Junior Subordinated Debentures (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Jul. 16, 2014
Debt Instrument [Line Items]      
Junior subordinated debentures, Amount $ 172,700,000 $ 172,700,000 $ 20,000,000
Argo Group [Member]      
Debt Instrument [Line Items]      
Junior subordinated debentures, Amount $ 28,400,000 $ 49,000,000  
PXRE Capital Statutory Trust II [Member] | Argo Group [Member]      
Debt Instrument [Line Items]      
Junior subordinated debentures, Issue date May 15, 2003 May 15, 2003  
Junior subordinated debentures, Maturity date May 15, 2033 May 15, 2033  
Junior subordinated debentures, Rate Structure 2015 and 2014: 3M LIBOR + 4.10%    
Junior subordinated debentures, interest rate stated percentage 4.46% 4.33%  
Junior subordinated debentures, Amount $ 18,100,000 $ 18,100,000  
PXRE Capital Trust VI [Member] | Argo Group [Member]      
Debt Instrument [Line Items]      
Junior subordinated debentures, Issue date Nov. 06, 2003 Nov. 06, 2003  
Junior subordinated debentures, Maturity date Sep. 30, 2033 Sep. 30, 2033  
Junior subordinated debentures, Rate Structure 2015 and 2014: 3M LIBOR + 3.90%    
Junior subordinated debentures, interest rate stated percentage 4.51% 4.16%  
Junior subordinated debentures, Amount $ 10,300,000 $ 10,300,000  
Argonaut Group Statutory Trust I [Member] | Argo Group US [Member]      
Debt Instrument [Line Items]      
Junior subordinated debentures, Issue date May 15, 2003 May 15, 2003  
Junior subordinated debentures, Maturity date May 15, 2033 May 15, 2033  
Junior subordinated debentures, Rate Structure 2015 and 2014: 3M LIBOR + 4.10%    
Junior subordinated debentures, interest rate stated percentage 4.46% 4.33%  
Junior subordinated debentures, Amount $ 15,500,000 $ 15,500,000  
Argonaut Group Statutory Trust III [Member] | Argo Group US [Member]      
Debt Instrument [Line Items]      
Junior subordinated debentures, Issue date Dec. 16, 2003 Dec. 16, 2003  
Junior subordinated debentures, Maturity date Jan. 08, 2034 Jan. 08, 2034  
Junior subordinated debentures, Rate Structure 2015 and 2014: 3M LIBOR + 4.10%    
Junior subordinated debentures, interest rate stated percentage 4.42% 4.33%  
Junior subordinated debentures, Amount $ 12,300,000 $ 12,300,000  
Argonaut Group Statutory Trust IV [Member] | Argo Group US [Member]      
Debt Instrument [Line Items]      
Junior subordinated debentures, Issue date Apr. 29, 2004 Apr. 29, 2004  
Junior subordinated debentures, Maturity date Apr. 29, 2034 Apr. 29, 2034  
Junior subordinated debentures, Rate Structure 2015 and 2014: 3M LIBOR + 3.85%    
Junior subordinated debentures, interest rate stated percentage 4.21% 4.08%  
Junior subordinated debentures, Amount $ 13,400,000 $ 13,400,000  
Argonaut Group Statutory Trust V [Member] | Argo Group US [Member]      
Debt Instrument [Line Items]      
Junior subordinated debentures, Issue date May 26, 2004 May 26, 2004  
Junior subordinated debentures, Maturity date May 24, 2034 May 24, 2034  
Junior subordinated debentures, Rate Structure 2015 and 2014: 3M LIBOR + 3.85%    
Junior subordinated debentures, interest rate stated percentage 4.23% 4.08%  
Junior subordinated debentures, Amount $ 12,300,000 $ 12,300,000  
Argonaut Group Statutory Trust VI [Member] | Argo Group US [Member]      
Debt Instrument [Line Items]      
Junior subordinated debentures, Issue date May 12, 2004 May 12, 2004  
Junior subordinated debentures, Maturity date May 12, 2034 May 12, 2034  
Junior subordinated debentures, Rate Structure 2015 and 2014: 3M LIBOR + 3.80%    
Junior subordinated debentures, interest rate stated percentage 4.33% 4.04%  
Junior subordinated debentures, Amount $ 13,400,000 $ 13,400,000  
Argonaut Group Statutory Trust VII [Member] | Argo Group US [Member]      
Debt Instrument [Line Items]      
Junior subordinated debentures, Issue date Sep. 17, 2004 Sep. 17, 2004  
Junior subordinated debentures, Maturity date Dec. 15, 2034 Dec. 15, 2034  
Junior subordinated debentures, Rate Structure 2015 and 2014: 3M LIBOR + 3.60%    
Junior subordinated debentures, interest rate stated percentage 4.11% 3.84%  
Junior subordinated debentures, Amount $ 15,500,000 $ 15,500,000  
Argonaut Group Statutory Trust VIII [Member] | Argo Group US [Member]      
Debt Instrument [Line Items]      
Junior subordinated debentures, Issue date Sep. 22, 2004 Sep. 22, 2004  
Junior subordinated debentures, Maturity date Sep. 22, 2034 Sep. 22, 2034  
Junior subordinated debentures, Rate Structure 2015 and 2014: 3M LIBOR + 3.55%    
Junior subordinated debentures, interest rate stated percentage 4.14% 3.80%  
Junior subordinated debentures, Amount $ 15,500,000 $ 15,500,000  
Argonaut Group Statutory Trust IX [Member] | Argo Group US [Member]      
Debt Instrument [Line Items]      
Junior subordinated debentures, Issue date Oct. 22, 2004 Oct. 22, 2004  
Junior subordinated debentures, Maturity date Dec. 15, 2034 Dec. 15, 2034  
Junior subordinated debentures, Rate Structure 2015 and 2014: 3M LIBOR + 3.60%    
Junior subordinated debentures, interest rate stated percentage 4.11% 3.84%  
Junior subordinated debentures, Amount $ 15,500,000 $ 15,500,000  
Argonaut Group Statutory Trust X [Member] | Argo Group US [Member]      
Debt Instrument [Line Items]      
Junior subordinated debentures, Issue date Sep. 15, 2005 Sep. 15, 2005  
Junior subordinated debentures, Maturity date Sep. 15, 2035 Sep. 15, 2035  
Junior subordinated debentures, Rate Structure 2015 and 2014: 3M LIBOR + 3.40%    
Junior subordinated debentures, interest rate stated percentage 3.91% 3.64%  
Junior subordinated debentures, Amount $ 30,900,000 $ 30,900,000  
v3.3.1.900
Other Indebtedness - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Mar. 07, 2014
Debt Instrument [Line Items]      
Floating rate loan stock denominated in Euros $ 38,100,000 $ 44,800,000  
Credit Agreement [Member] | Revolving Credit Facility | J P Morgan Chase Bank      
Debt Instrument [Line Items]      
Letter of credit facility amount     $ 175,000,000
Revolving credit facility maturity date Mar. 07, 2018    
Credit Agreement [Member] | Letter Of Credit | J P Morgan Chase Bank      
Debt Instrument [Line Items]      
Letter of credit facility amount $ 17,500,000    
Letter of credit facility amount $ 0 $ 200,000 200,000
Previous Credit Agreement [Member] | Revolving Credit Facility      
Debt Instrument [Line Items]      
Letter of credit facility amount     150,000,000
Maximum borrowing capacity under revolving credit facility before amendment     $ 150,000,000
Unsecured Debt [Member]      
Debt Instrument [Line Items]      
Debt Instrument, Redemption Price, Percentage 100.00% 100.00%  
Other Debt - Note Payable [Member]      
Debt Instrument [Line Items]      
Note payable as part of ARIS acquisition $ 600,000 $ 700,000  
Debt instrument maturity date Apr. 01, 2019    
Debt instrument, interest rate terms The note had a variable interest rate of 2.00% above 30-day LIBOR, with the variable interest rate being reset quarterly and subject to certain interest rate ceilings. Interest payments are payable quarterly.    
Other Debt - Note Payable [Member] | London Interbank Offered Rate (LIBOR) [Member]      
Debt Instrument [Line Items]      
Variable interest rate of note payable, above 30-day LIBOR 2.00%    
v3.3.1.900
Other Indebtedness - Schedule of Floating Rate Loan Stock, Notes Outstanding (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Debt Instrument [Line Items]    
Other indebtedness, Amount $ 54.6 $ 61.3
Floating Rate Loan Stock, U.S. Dollar, Start Year 2004 [Member]    
Debt Instrument [Line Items]    
Junior subordinated debentures, Issue date Dec. 08, 2004 Dec. 08, 2004
Debt instrument maturity date Nov. 15, 2034 Nov. 15, 2034
Other indebtedness, Rate Structure 2015 and 2014: 6 month LIBOR + 4.2%  
Junior subordinated debentures, interest rate stated percentage 4.66% 4.53%
Other indebtedness, Amount $ 6.5 $ 6.5
Floating Rate Loan Stock, Euro, Start Year 2005 [Member]    
Debt Instrument [Line Items]    
Junior subordinated debentures, Issue date Sep. 06, 2005 Sep. 06, 2005
Debt instrument maturity date Aug. 22, 2035 Aug. 22, 2035
Other indebtedness, Rate Structure 2015 and 2014: 3 month LIBOR + 4.0%  
Junior subordinated debentures, interest rate stated percentage 3.91% 4.08%
Other indebtedness, Amount $ 12.7 $ 14.9
Floating Rate Loan Stock, U.S. Dollar, Start Year 2006 [Member]    
Debt Instrument [Line Items]    
Junior subordinated debentures, Issue date Oct. 31, 2006 Oct. 31, 2006
Debt instrument maturity date Jan. 15, 2036 Jan. 15, 2036
Other indebtedness, Rate Structure 2015 and 2014: 6 month LIBOR + 4.0%  
Junior subordinated debentures, interest rate stated percentage 4.46% 4.33%
Other indebtedness, Amount $ 10.0 $ 10.0
Floating Rate Loan Stock, Euro, Start Year 2006 [Member]    
Debt Instrument [Line Items]    
Junior subordinated debentures, Issue date Oct. 31, 2006 Oct. 31, 2006
Debt instrument maturity date Nov. 22, 2036 Nov. 22, 2036
Other indebtedness, Rate Structure 2015 and 2014: 3 month LIBOR + 4.0%  
Junior subordinated debentures, interest rate stated percentage 3.91% 4.08%
Other indebtedness, Amount $ 11.1 $ 13.1
Floating Rate Loan Stock, Euro, Start Year 2007 [Member]    
Debt Instrument [Line Items]    
Junior subordinated debentures, Issue date Jun. 08, 2007 Jun. 08, 2007
Debt instrument maturity date Sep. 15, 2037 Sep. 15, 2037
Other indebtedness, Rate Structure 2015 and 2014: 3 month LIBOR + 3.9%  
Junior subordinated debentures, interest rate stated percentage 3.86% 3.98%
Other indebtedness, Amount $ 14.3 $ 16.8
v3.3.1.900
Disclosures about Fair Value of Financial Instruments - Additional Information (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Premiums receivable $ 404.5 $ 353.6
Reinsurance recoverables 1,121.1 997.2
Premiums receivable, allowance for doubtful accounts 3.5 5.2
Reinsurance recoverables, allowance for doubtful accounts 3.2 3.4
Over 90 Days [Member]    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Premiums receivable 10.0 12.4
Reinsurance recoverables 7.1 9.9
Reinsurance recoverables, allowance for doubtful accounts 2.2 1.8
Premiums receivables, secured by collateral 0.2 0.3
Reinsurance recoverables, secured by collateral $ 0.7 $ 0.4
v3.3.1.900
Disclosures about Fair Value of Financial Instruments - Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Carrying Amount [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments $ 371.7 $ 378.5
Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 366.1 343.6
Junior Subordinated Debentures [Member] | Carrying Amount [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 172.7 172.7
Junior Subordinated Debentures [Member] | Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 166.5 155.5
Senior Unsecured Fixed Rate Notes [Member] | Carrying Amount [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 143.8 143.8
Senior Unsecured Fixed Rate Notes [Member] | Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 146.3 132.3
Other Indebtedness [Member] | Carrying Amount [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 54.6 61.3
Other Indebtedness [Member] | Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 52.7 55.2
Other Indebtedness [Member] | Carrying Amount [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 0.6 0.7
Other Indebtedness [Member] | Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments $ 0.6 $ 0.6
v3.3.1.900
Shareholders Equity - Additional Information (Detail) - USD ($)
 3 Months Ended 12 Months Ended
Feb. 16, 2016
Feb. 17, 2015
Nov. 04, 2014
Aug. 05, 2014
May. 05, 2014
Feb. 18, 2014
Nov. 04, 2013
Aug. 06, 2013
May. 07, 2013
Feb. 15, 2013
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Nov. 05, 2013
Class Of Stock [Line Items]                                            
Dividend declared per common share     $ 0.69 $ 0.69 $ 0.69 $ 0.69 $ 0.45 $ 0.45 $ 0.45 $ 0.15                 $ 0.80 $ 0.63 $ 0.54  
Dividends declaration date   Feb. 17, 2015                 Nov. 04, 2014 Aug. 05, 2014 May 05, 2014 Feb. 18, 2014 Nov. 04, 2013 Aug. 06, 2013 May 07, 2013 Feb. 15, 2013     May 07, 2013  
Dividends payable date   Mar. 16, 2015                                     Jun. 17, 2013  
Dividend payable, date of record   Mar. 02, 2015                                     Jun. 03, 2013  
Stock dividend declared   10.00%             10.00%           10.00%       10.00%   10.00%  
Additional stock issued as dividend   2,554,506                                     2,447,839  
Cash dividends paid - common shares, total                                     $ 22,700,000 $ 18,200,000 $ 15,800,000  
Preferred shares, authorized                                     30,000,000      
Preferred shares, par value                                     $ 1.00      
Preferred shares, issued                     0               0 0    
Preferred shares, outstanding                     0               0 0    
Common shares repurchased on open market                                     575,155 1,048,144 1,098,732  
2013 Repurchase Authorization [Member]                                            
Class Of Stock [Line Items]                                            
Total number of shares authorized for purchase, Value                                     $ 63,100,000     $ 150,000,000
Common shares repurchased on open market                                     575,155 1,048,144    
Common shares repurchased on open market, total cost                                     $ 29,700,000 $ 50,800,000    
2015 Adjusted Stock Dividend [Member]                                            
Class Of Stock [Line Items]                                            
Dividend declared per common share     $ 0.63 $ 0.63 $ 0.63 $ 0.63 $ 0.41 $ 0.41 $ 0.41                          
2013 and 2015 Adjusted Stock Dividends [Member]                                            
Class Of Stock [Line Items]                                            
Dividend declared per common share                   $ 0.13                        
Subsequent Event [Member]                                            
Class Of Stock [Line Items]                                            
Dividend declared per common share $ 0.22                                          
Dividends declaration date Feb. 16, 2016                                          
Dividends payable date Mar. 15, 2016                                          
Dividend payable, date of record Mar. 01, 2016                                          
v3.3.1.900
Shareholders Equity - Schedule of Repurchase of Shares (Detail) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Equity Class Of Treasury Stock [Line Items]      
Common shares repurchased on open market 575,155 1,048,144 1,098,732
Average Price of Shares Repurchased $ 51.58    
Total Cost (in millions) $ 29.7 $ 50.8 $ 45.1
10b5-1 Trading Plan Initiated In 12/15/2014 [Member]      
Equity Class Of Treasury Stock [Line Items]      
Date Trading Plan Initiated Dec. 15, 2014    
Trading Plan Purchase Period Start Date Jan. 05, 2015    
Common shares repurchased on open market 117,482    
Average Price of Shares Repurchased $ 53.50    
Total Cost (in millions) $ 6.3    
Repurchase Authorization Year 2013    
Trading Plan Purchase Period End Date Dec. 02, 2015    
10b5-1 Trading Plan Initiated In 03/16/2015 [Member]      
Equity Class Of Treasury Stock [Line Items]      
Date Trading Plan Initiated Mar. 16, 2015    
Trading Plan Purchase Period Start Date Mar. 18, 2015    
Common shares repurchased on open market 150,050    
Average Price of Shares Repurchased $ 49.56    
Total Cost (in millions) $ 7.4    
Repurchase Authorization Year 2013    
Trading Plan Purchase Period End Date May 06, 2015    
10b5-1 Trading Plan Initiated In 12/16/2015 [Member]      
Equity Class Of Treasury Stock [Line Items]      
Date Trading Plan Initiated Dec. 16, 2015    
Trading Plan Purchase Period Start Date Dec. 18, 2015    
Common shares repurchased on open market 100    
Average Price of Shares Repurchased $ 59.03    
Total Cost (in millions) $ 0.0    
Repurchase Authorization Year 2013    
Trading Plan Purchase Period End Date Dec. 23, 2015    
Open Market [Member]      
Equity Class Of Treasury Stock [Line Items]      
Trading Plan Purchase Period Start Date Jan. 01, 2015    
Common shares repurchased on open market 307,523    
Average Price of Shares Repurchased $ 51.83    
Total Cost (in millions) $ 16.0    
Repurchase Authorization Year 2013    
Trading Plan Purchase Period End Date Sep. 30, 2015    
v3.3.1.900
Shareholders' Equity - Schedule of Authorized and Unissued Common Shares Reserved (Detail)
Dec. 31, 2015
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total Shares Reserved 5,860,544
2014 Long-Term Incentive Plan [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total Shares Reserved 3,930,147
2007 Employee Share Purchase Plan [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total Shares Reserved 1,929,537
Historical Stock Compensation Plans [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total Shares Reserved 860
v3.3.1.900
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Accumulated Other Comprehensive Income Loss [Line Items]      
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance $ 108.1 $ 147.8  
Other comprehensive (loss) income before reclassifications (95.7) (19.0)  
Amounts reclassified from accumulated other comprehensive (loss) income (0.9) (20.7)  
Other comprehensive loss, net of tax (96.6) (39.7) $ (41.7)
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance 11.5 108.1 147.8
Foreign Currency Translation Adjustments      
Accumulated Other Comprehensive Income Loss [Line Items]      
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance (15.6) (11.5)  
Other comprehensive (loss) income before reclassifications (6.0) (4.1)  
Amounts reclassified from accumulated other comprehensive (loss) income 0.0 0.0  
Other comprehensive loss, net of tax (6.0) (4.1)  
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance (21.6) (15.6) (11.5)
Unrealized Holding Gains on Securities      
Accumulated Other Comprehensive Income Loss [Line Items]      
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance 130.7 163.9  
Other comprehensive (loss) income before reclassifications (89.8) (12.5)  
Amounts reclassified from accumulated other comprehensive (loss) income (0.9) (20.7)  
Other comprehensive loss, net of tax (90.7) (33.2)  
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance 40.0 130.7 163.9
Defined Benefit Pension Plans      
Accumulated Other Comprehensive Income Loss [Line Items]      
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance (7.0) (4.6)  
Other comprehensive (loss) income before reclassifications 0.1 (2.4)  
Amounts reclassified from accumulated other comprehensive (loss) income 0.0 0.0  
Other comprehensive loss, net of tax 0.1 (2.4)  
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance $ (6.9) $ (7.0) $ (4.6)
v3.3.1.900
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Unrealized gains and losses on securities:      
Net realized investment gains $ (7.2) $ (30.6) $ (59.8)
Provision for income taxes 6.3 9.9 19.4
Net of taxes (0.9) (20.7)  
Unrealized Holding Gains on Securities      
Unrealized gains and losses on securities:      
Net of taxes (0.9) (20.7)  
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Holding Gains on Securities      
Unrealized gains and losses on securities:      
Net realized investment gains (7.2) (30.6) (59.8)
Provision for income taxes 6.3 9.9 19.4
Net of taxes $ (0.9) $ (20.7) $ (40.4)
v3.3.1.900
Net Income Per Common Share - Net Income Per Common Share on Basic and Diluted Basis (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Earnings Per Share [Abstract]                      
Net income $ 41.2 $ 35.3 $ 27.9 $ 58.8 $ 59.7 $ 44.7 $ 38.6 $ 40.2 $ 163.2 $ 183.2 $ 143.2
Weighted average common shares outstanding - basic                 27,972,962 28,690,306 29,536,472
Effect of dilutive securities:                      
Equity compensation awards                 560,337 522,542 1,120,011
Weighted average common shares outstanding - diluted                 28,533,299 29,212,848 30,656,483
Net income per common share - basic $ 1.48 [1] $ 1.27 [1] $ 1.00 [1] $ 2.09 [1] $ 2.11 [1] $ 1.57 [1] $ 1.34 [1] $ 1.38 [1] $ 5.84 [1] $ 6.39 [1] $ 4.85
Net income per common share - diluted $ 1.44 [1] $ 1.24 [1] $ 0.98 [1] $ 2.05 [1] $ 2.07 [1] $ 1.54 [1] $ 1.32 [1] $ 1.36 [1] $ 5.72 [1] $ 6.27 [1] $ 4.67
[1] Basic and diluted net income per common share are computed independently for each quarter and full year based on the respective average number of common shares outstanding; therefore, the sum of the quarterly net income per common share data may not equal the net income per common share for the year.
v3.3.1.900
Net Income Per Common Share - Additional Information (Detail) - shares
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Earnings Per Share [Abstract]      
Treasury shares, shares 9,181,644 8,606,489 7,558,345
Antidilutive securities excluded from computation of diluted net income per share, shares 0 1,700 3,300
v3.3.1.900
Share-based Compensation - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]      
Share-based compensation arrangement by share-based payment award, award vesting period, years 5 years 5 years  
Share-based payment expense $ 29.1 $ 19.6 $ 23.3
Share-based payments expense, net of tax $ 23.7 $ 16.2 $ 18.6
v3.3.1.900
Share-based Compensation - Fair Value Assumptions (Detail)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free rate of return, minimum 1.44% 1.53% 0.80%
Expected volatility, minimum 20.04% 22.84% 26.30%
Risk-free rate of return, maximum 1.81% 1.77% 1.71%
Expected volatility, maximum 22.09% 25.46% 32.07%
Minimum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected dividend yields 1.46% 1.49% 1.49%
Expected award life (years) 4 years 7 months 13 days 4 years 8 months 1 day 4 years 10 months 28 days
Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected dividend yields 1.60% 1.55% 1.67%
Expected award life (years) 4 years 8 months 16 days 4 years 10 months 6 days 5 years 26 days
v3.3.1.900
Share-Based Compensation - 2014 Long-Term Incentive Plan - Additional Information (Detail) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
May. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Nov. 30, 2007
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation arrangement by share-based payment award, number of shares authorized   5,860,544      
Cash received for exercise of stock options   $ 1.4      
Share-based compensation arrangement by share-based payment award, award vesting period, years   5 years 5 years    
Share-based payment expense   $ 29.1 $ 19.6 $ 23.3  
Employee Stock Option          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Options granted during the period   0 0 0  
Restricted Stock Units (RSUs) [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Employee service share-based compensation, unrecognized compensation costs on non-vested awards   $ 13.3      
Employee service share-based compensation, unrecognized compensation costs weighted-average period, years   2 years 3 months 18 days      
Share-based compensation arrangement by share-based payment award, total fair value of shares vested   $ 4.1      
Employee service share-based compensation, cash paid to exercise of stock options   $ 0.3 $ 0.4    
Share based compensation arrangement by share based payment award options, outstanding   475,307 313,716    
Share-based payment expense   $ 0.2 $ 0.5 $ 0.9  
Restricted Stock Units (RSUs) [Member] | Performance Condition [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share based compensation arrangement by share based payment award options, outstanding   271,311      
Restricted Stock Units (RSUs) [Member] | Minimum [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation arrangement by share-based payment award, award vesting period, years   24 months      
Restricted Stock Units (RSUs) [Member] | Maximum [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation arrangement by share-based payment award, award vesting period, years   48 months      
Stock-Settled SARs Activity [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Options granted during the period   243,305      
Employee service share-based compensation, unrecognized compensation costs on non-vested awards   $ 2.9      
Employee service share-based compensation, unrecognized compensation costs weighted-average period, years   2 years 8 months 12 days      
Exercised, shares   228,244      
Share based compensation arrangement by share based payment award, shares issued   129,670      
Share based compensation arrangement by share based payment award options exercises, intrinsic value   $ 36.0      
Share based compensation arrangement by share based payment award options, outstanding   1,318,101 1,313,726    
Stock-Settled SARs Activity [Member] | Performance Condition [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share based compensation arrangement by share based payment award options, outstanding   181,319      
Stock-Settled SARs Activity [Member] | Minimum [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation arrangement by share-based payment award, award vesting period, years   1 year      
Stock-Settled SARs Activity [Member] | Maximum [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation arrangement by share-based payment award, award vesting period, years   4 years      
Cash-Settled SARs Activity [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Options granted during the period   913,157      
Employee service share-based compensation, unrecognized compensation costs on non-vested awards   $ 15.8      
Employee service share-based compensation, unrecognized compensation costs weighted-average period, years   2 years 7 months 6 days      
Exercised, shares   492,511      
Share based compensation arrangement by share based payment award options exercises, intrinsic value   $ 44.0      
Employee service share-based compensation, cash paid to exercise of stock options   12.8      
Liability for stock awards   $ 31.0 $ 24.4    
Share based compensation arrangement by share based payment award options, outstanding   2,134,121 2,001,451    
Cash-Settled SARs Activity [Member] | Performance Condition [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share based compensation arrangement by share based payment award options, outstanding   803,506      
Cash-Settled SARs Activity [Member] | Minimum [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation arrangement by share-based payment award, award vesting period, years   1 year      
Cash-Settled SARs Activity [Member] | Maximum [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation arrangement by share-based payment award, award vesting period, years   4 years      
2007 Plan [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation arrangement by share-based payment award, number of shares authorized         4,500,000
Share-based compensation arrangement by share-based payment award, number of shares available for grant 1,457,800        
2014 Plan [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation arrangement by share-based payment award, additional number of shares authorized 2,800,000        
Count of restricted shares, settle in common shares   2.75      
v3.3.1.900
Share-based Compensation - Summary of Restricted Share Activity (Detail) - Restricted Stock Units (RSUs) [Member]
 12 Months Ended
Dec. 31, 2015
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares, Outstanding at January 1, 2015 | shares 313,716
Granted, Shares | shares 299,902
Vested and issued, Shares | shares (123,028)
Expired or forfeited, Shares | shares (15,283)
Shares, Outstanding at December 31, 2015 | shares 475,307
Weighted-Average Grant Date Fair Value, Outstanding at January 1, 2015 | $ / shares $ 35.19
Granted, Weighted-Average Grant Date Fair Value | $ / shares 41.94
Vested and issued, Weighted-Average Grant Date Fair Value | $ / shares 30.04
Expired or forfeited, Weighted-Average Grant Date Fair Value | $ / shares 45.20
Weighted-Average Grant Date Fair Value, Outstanding at December 31, 2015 | $ / shares $ 40.46
v3.3.1.900
Share-based Compensation - Summary of Stock-Settled SARs Activity (Detail) - Stock-Settled SARs Activity [Member]
 12 Months Ended
Dec. 31, 2015
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares, Outstanding at January 1, 2015 | shares 1,313,726
Granted, Shares | shares 243,305
Exercised, Shares | shares (228,244)
Expired or forfeited, Shares | shares (10,686)
Shares, Outstanding at December 31, 2015 | shares 1,318,101
Vested or expected to vest as of year end, Shares | shares 1,238,645
Exercisable at end of year, Shares | shares 803,807
Weighted-Average Exercise Price, Outstanding at January 1, 2015 | $ / shares $ 28.43
Granted, Weighted-Average Exercise Price | $ / shares 46.53
Exercised, Weighted-Average Exercise Price | $ / shares 24.21
Expired or forfeited, Weighted-Average Exercise Price | $ / shares 28.17
Weighted-Average Exercise Price, Outstanding at December 31, 2015 | $ / shares 32.50
Vested or expected to vest as of year end, Weighted-Average Exercise Price | $ / shares 32.01
Exercisable at end of year, Weighted-Average Exercise Price | $ / shares $ 27.58
v3.3.1.900
Share-based Compensation - Summary of Cash-Settled SARs Activity (Detail) - Cash-Settled SARs Activity [Member]
 12 Months Ended
Dec. 31, 2015
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares, Outstanding at January 1, 2015 | shares 2,001,451
Granted, Shares | shares 913,157
Exercised, Shares | shares (492,511)
Expired or forfeited, Shares | shares (287,976)
Shares, Outstanding at December 31, 2015 | shares 2,134,121
Vested or expected to vest as of year end, Shares | shares 1,876,079
Exercisable at end of year, Shares | shares 463,176
Weighted-Average Exercise Price, Outstanding at January 1, 2015 | $ / shares $ 32.76
Granted, Weighted-Average Exercise Price | $ / shares 47.48
Exercised, Weighted-Average Exercise Price | $ / shares 29.47
Expired or forfeited, Weighted-Average Exercise Price | $ / shares 37.11
Weighted-Average Exercise Price, Outstanding at December 31, 2015 | $ / shares 39.22
Vested or expected to vest as of year end, Weighted-Average Exercise Price | $ / shares 37.79
Exercisable at end of year, Weighted-Average Exercise Price | $ / shares $ 30.38
v3.3.1.900
Share-Based Compensation - Employees Share Purchase Plans - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Schedule Of Share Repurchase Programs [Line Items]      
Share-based compensation arrangement by share-based payment award, award vesting period, years 5 years 5 years  
Share-based payment expense $ 29.1 $ 19.6 $ 23.3
2007 Employee Share Purchase Plan [Member]      
Schedule Of Share Repurchase Programs [Line Items]      
Share-based compensation arrangement by share-based payment award, discount from market price 85.00%    
Share-based compensation arrangement by share-based payment award, award vesting period, years 3 months    
Earn Plan [Member]      
Schedule Of Share Repurchase Programs [Line Items]      
Share-based compensation arrangement by share-based payment award, discount from market price 85.00%    
Earn Plan [Member] | Minimum [Member]      
Schedule Of Share Repurchase Programs [Line Items]      
Share-based compensation arrangement by share-based payment award, award vesting period, years 3 years    
Earn Plan [Member] | Maximum [Member]      
Schedule Of Share Repurchase Programs [Line Items]      
Share-based compensation arrangement by share-based payment award, award vesting period, years 5 years    
Stock Compensation Plan [Member]      
Schedule Of Share Repurchase Programs [Line Items]      
Share-based payment expense $ 0.4 $ 0.3 $ 0.3
v3.3.1.900
Share-Based Compensation - Deferred Compensation Plan for Non-Employee Directors - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Schedule Of Share Repurchase Programs [Line Items]      
Deferred compensation arrangement with individual, description Under the Directors Plan, non-employee directors could elect each year to defer payment of 0%, 50% or 100% of their cash compensation payable during the next calendar year.    
Deferred compensation arrangement with individual, employer contribution percentage     75.00%
Deferred compensation arrangement with individual, shares authorized for issuance     1,650
Share-based payment expense $ 29.1 $ 19.6 $ 23.3
2007 Plan [Member]      
Schedule Of Share Repurchase Programs [Line Items]      
Share-based compensation arrangement by share-based payment award, discount from market price     50.00%
Deferred compensation arrangement with individual, interest rate Two percent above the prime rate    
2007 Plan [Member] | Minimum [Member]      
Schedule Of Share Repurchase Programs [Line Items]      
Share-based compensation arrangement by share-based payment award, discount from market price     0.00%
2007 Plan [Member] | Maximum [Member]      
Schedule Of Share Repurchase Programs [Line Items]      
Share-based compensation arrangement by share-based payment award, discount from market price     100.00%
Deferred Compensation Plan [Member]      
Schedule Of Share Repurchase Programs [Line Items]      
Employee service share-based compensation, cash paid to exercise of stock options     $ 1.9
Share-based payment expense $ 0.9 0.7 $ 2.0
Liability for stock awards $ 4.5 $ 4.2  
Directors Plan Remaining Distributions Period [Member]      
Schedule Of Share Repurchase Programs [Line Items]      
Deferred compensation arrangement with individual, distributions period, months     6 months
v3.3.1.900
Underwriting, Acquisition and Insurance Expenses - Underwriting, Acquisition and Insurance Expenses (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Underwriting Acquisition And Insurance Expenses [Abstract]      
Commissions $ 232.2 $ 231.1 $ 229.6
General expenses 298.5 288.0 272.8
Premium taxes, boards and bureaus 9.8 25.5 24.2
Underwriting, acquisition and insurance expenses, total 540.5 544.6 526.6
Net deferral of policy acquisition costs (0.9) (5.4) (15.8)
Total underwriting, acquisition and insurance expenses $ 539.6 $ 539.2 $ 510.8
v3.3.1.900
Underwriting, Acquisition and Insurance Expenses - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Underwriting Acquisition And Insurance Expenses [Abstract]      
Share-based payments expense $ 29.1 $ 19.6 $ 23.3
v3.3.1.900
Income Taxes - Income Tax Provision (Benefit) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Tax Disclosure [Abstract]      
Current tax provision $ 6.0 $ 5.2 $ 32.7
Future tax deductions 10.9 58.4 0.1
Valuation allowance change (2.6) (30.8) 3.7
Income tax provision $ 14.3 $ 32.8 $ 36.5
v3.3.1.900
Income Taxes - Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss) $ 44.2 $ 36.2 $ 34.7 $ 62.4 $ 80.3 $ 48.3 $ 44.7 $ 42.7 $ 177.5 $ 216.0 $ 179.7
Effective Tax Rate                 0.00% 0.00% 0.00%
Bermuda [Member]                      
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss)                 $ 94.3 $ 102.8 $ 50.5
Effective Tax Rate                 0.00% 0.00% 0.00%
United States [Member]                      
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss)                 $ 64.8 $ 98.0 $ 120.9
Effective Tax Rate                 19.90% 28.10% 28.20%
United Kingdom [Member]                      
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss)                 $ 21.3 $ 21.5 $ 18.5
Effective Tax Rate                 (4.70%) 24.80% 12.00%
Belgium [Member]                      
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss)                 $ 0.0 [1] $ 0.0 [1] $ 0.2
Effective Tax Rate                 237.00% 63.80% 103.00%
Brazil [Member]                      
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss)                 $ (3.2) $ (2.2) $ (9.7)
Effective Tax Rate                 0.00% 0.00% 0.00%
United Arab Emirates [Member]                      
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss)                 $ 0.2 $ (0.9) $ 1.1
Effective Tax Rate                 0.00% 0.00% 0.00%
Ireland [Member]                      
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss) [2]                 $ (0.1) $ (1.1) $ (0.1)
Effective Tax Rate [2]                 5.00% 0.00% 0.00%
Malta [Member]                      
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss)                 $ 0.1 $ (2.2) $ (1.7)
Effective Tax Rate                 0.00% 0.00% 0.00%
Switzerland [Member]                      
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss)                 $ 0.1 $ 0.1 $ 0.0 [1]
Effective Tax Rate                 20.50% 17.60% 5.60%
[1] Pre-tax income for the respective year was less than $0.1 million.
[2] Effective tax rate of 5 percent on intercompany dividends of $50.0 million for the year ended December 31, 2015. Dividends eliminated in consolidation.
v3.3.1.900
Income Taxes - Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates (Parenthetical) (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss) $ 44.2 $ 36.2 $ 34.7 $ 62.4 $ 80.3 $ 48.3 $ 44.7 $ 42.7 $ 177.5 $ 216.0 $ 179.7
Effective tax rate percent on intercompany dividends                 0.00% 0.00% 0.00%
Intercompany dividends                 $ 2.3 $ 2.3 $ 2.3
Switzerland [Member]                      
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss)                 $ 0.1 $ 0.1 $ 0.0 [1]
Effective tax rate percent on intercompany dividends                 20.50% 17.60% 5.60%
Belgium [Member]                      
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss)                 $ 0.0 [1] $ 0.0 [1] $ 0.2
Effective tax rate percent on intercompany dividends                 237.00% 63.80% 103.00%
Ireland [Member]                      
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss) [2]                 $ (0.1) $ (1.1) $ (0.1)
Effective tax rate percent on intercompany dividends [2]                 5.00% 0.00% 0.00%
Intercompany dividends                 $ 50.0    
Maximum [Member] | Switzerland [Member]                      
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss)                 0.1 $ 0.1 $ 0.1
Maximum [Member] | Belgium [Member]                      
Income Tax Examination [Line Items]                      
Pre-Tax Income (Loss)                 $ 0.1 $ 0.1  
[1] Pre-tax income for the respective year was less than $0.1 million.
[2] Effective tax rate of 5 percent on intercompany dividends of $50.0 million for the year ended December 31, 2015. Dividends eliminated in consolidation.
v3.3.1.900
Income Taxes - Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Tax Disclosure [Abstract]      
Income tax provision at expected rate $ 25.8 $ 37.2 $ 43.1
Tax-exempt interest (4.2) (4.5) (5.6)
Dividends received deduction (2.3) (2.3) (2.3)
Valuation allowance change (2.6) (30.8) 3.7
Other permanent adjustments, net 0.3 (0.7) 0.3
Adjustment for prior year tax return (0.6) (0.9) (1.6)
United States state tax expense (2.5) 2.5 0.3
PXRE Reinsurance capital loss carryforward 0.0 29.8 0.0
Other foreign adjustments (0.3) 0.7 (0.1)
Foreign tax credit utilization (2.1) 0.1 1.1
Deferred tax rate reduction 0.0 (0.4) (1.2)
Foreign exchange adjustments (0.1) 1.7 (1.7)
Foreign withholding taxes 2.9 0.4 0.5
Income tax provision 14.3 32.8 36.5
Income tax provision - Foreign (1.1) 5.2 2.4
Income tax provision - United States, Federal 16.4 23.3 33.2
Income tax (benefit) provision - United States, State $ (3.9) $ 3.9 $ 0.4
v3.3.1.900
Income Taxes - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Taxes Disclosure [Line Items]      
Foreign tax credit utilization $ (2,100,000) $ 100,000 $ 1,100,000
Decrease in tax related to reversal of estimated state tax accrual 2,500,000    
Increase withholding taxes paid 2,500,000    
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions   1,300,000 1,600,000
Deferred tax rate reduction 0 (400,000) (1,200,000)
Foreign exchange adjustments, increase   1,000,000 1,700,000
Deferred tax decreased and Increase balance $ (29,400,000) 24,300,000  
Net operating losses carryback period 2 years    
Capital losses carryback period 3 years    
Total net deferred tax liabilities $ 800,000    
Net operating loss carryforward 16,800,000    
Loss carryforwards per year 2,800,000    
Valuation allowance 22,800,000 25,400,000  
Unrecognized tax benefits 0 0 $ 0
December 31, 2025 [Member]      
Income Taxes Disclosure [Line Items]      
Loss carryforwards, amounts expiring if not utilized 15,300,000    
December 31, 2027 [Member]      
Income Taxes Disclosure [Line Items]      
Loss carryforwards, amounts expiring if not utilized 1,500,000    
ARIS [Member]      
Income Taxes Disclosure [Line Items]      
Net operating loss carryforward 1,000,000    
ARIS [Member] | December 31, 2027 [Member]      
Income Taxes Disclosure [Line Items]      
Loss carryforwards, amounts expiring if not utilized 200,000    
ARIS [Member] | December 31, 2028 [Member]      
Income Taxes Disclosure [Line Items]      
Loss carryforwards, amounts expiring if not utilized 400,000    
ARIS [Member] | December 31, 2029 [Member]      
Income Taxes Disclosure [Line Items]      
Loss carryforwards, amounts expiring if not utilized 400,000    
PXRE Reinsurance Company [Member]      
Income Taxes Disclosure [Line Items]      
Increase of recognized benefit   29,800,000  
Valuation allowance 14,900,000    
Reduced valuation allowance 1,000,000    
United Kingdom [Member]      
Income Taxes Disclosure [Line Items]      
Foreign tax credit utilization 2,100,000    
Deferred tax rate reduction   $ (400,000)  
Malta [Member]      
Income Taxes Disclosure [Line Items]      
Valuation allowance 1,800,000    
Decreased valuation allowance 300,000    
Brazil [Member]      
Income Taxes Disclosure [Line Items]      
Valuation allowance 6,100,000    
Decreased valuation allowance $ 1,300,000    
v3.3.1.900
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Income Tax Examination [Line Items]    
Losses and loss adjustment expense reserve discounting $ 23.4 $ 25.1
Unearned premiums 26.6 24.8
Allowance for bad debt 1.6 2.0
Accrual for contingent commissions 0.3 0.3
Net operating loss carryforward 17.8 18.8
Impairment of investment values 9.6 8.2
United States amortization of intangible assets 4.9 4.3
Accrued bonus 7.0 6.7
Accrued vacation 1.6 1.7
Stock option expense 10.1 8.0
Other 15.9 7.0
Deferred tax assets, gross 126.5 116.4
Unrealized gains on equity securities (40.1) (62.3)
Unrealized gains on fixed maturities and other investment securities (0.4) (15.3)
Deferred acquisition costs (20.4) (20.3)
United States amortization of intangible assets (3.6) (3.5)
United Kingdom underwriting losses (9.7) (9.0)
United Kingdom amortization of intangible assets (1.8) (2.3)
Deferred gain on like-kind exchange (13.3) 0.0
Depreciable fixed asset (18.0) (16.3)
Unrealized Gain on Limited Partnership Interests (11.0) (10.5)
Other (9.0) (4.5)
Deferred tax liabilities, gross (127.3) (144.0)
Deferred tax assets, net before valuation allowance (0.8) (27.6)
Valuation allowance (22.8) (25.4)
Deferred tax liabilities, net (23.6) (53.0)
Net deferred tax liabilities - Foreign (11.7) (11.8)
Net deferred tax liabilities - United States (11.9) (41.2)
Brazil [Member]    
Income Tax Examination [Line Items]    
Operating losses 5.9 7.4
Malta [Member]    
Income Tax Examination [Line Items]    
Operating losses $ 1.8 $ 2.1
v3.3.1.900
Pension Benefits and Savings Plans - Schedule of Change in Plan Assets (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Compensation And Retirement Disclosure [Abstract]    
Fair value of plan assets at beginning of year $ 19.2 $ 20.2
Actual return on plan assets (0.1) 1.0
Employer contributions 0.2 0.2
Settlements and benefits paid (1.8) (2.2)
Fair value of plan assets at end of year $ 17.5 $ 19.2
v3.3.1.900
Pension Benefits and Savings Plans - Schedule of Change in Projected Benefit Obligation (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Compensation And Retirement Disclosure [Abstract]    
Projected benefit obligation at beginning of year $ 25.8 $ 22.6
Interest cost 0.8 1.0
Actuarial loss (gain) (1.6) 4.3
Settlements and benefits paid (1.9) (2.1)
Projected benefit obligation at end of year $ 23.1 $ 25.8
v3.3.1.900
Pension Benefits and Savings Plans - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]      
Net periodic benefit cost $ 100,000 $ 500,000 $ 100,000
Unrecognized actuarial loss 400,000    
Maximum expected annual payments under the pensions plan 2,500,000    
Defined benefit plans with accumulated benefit obligations in excess of plan assets 2,300,000 2,200,000  
Fair value of plan assets 17,500,000 19,200,000 20,200,000
Contributions by employer towards savings plan 200,000 200,000  
Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 17,400,000 18,800,000  
Short-Term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 100,000 400,000  
Qualified Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Amount of pension related to plan 3,400,000 4,400,000  
Non- Qualified Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Amount of pension related to plan 2,300,000 2,200,000  
Fair value of plan assets $ 0 0  
Target Thresholds [Member] | Fixed Income Investments [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Target Allocation Percentage 65.00%    
Target Thresholds [Member] | Equity Investments [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Target Allocation Percentage 35.00%    
Actual Asset Allocation [Member] | Fixed Income Investments [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Target Allocation Percentage 62.00%    
Actual Asset Allocation [Member] | United States [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Target Allocation Percentage 21.30%    
Actual Asset Allocation [Member] | Equity Investments [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Target Allocation Percentage 38.00%    
Actual Asset Allocation [Member] | Foreign Equities [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Target Allocation Percentage 16.70%    
Employee Savings Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Contributions by employer towards savings plan $ 6,300,000 $ 7,100,000 $ 6,800,000
v3.3.1.900
Pension Benefits and Savings Plans - Schedule of Assumptions to Determine Benefit Obligations (Detail)
Dec. 31, 2015
Dec. 31, 2014
Compensation And Retirement Disclosure [Abstract]    
Weighted average discount rate 3.48% 3.37%
Expected rate of increase in future compensation levels 0.00% 0.00%
v3.3.1.900
Pension Benefits and Savings Plans - Schedule of Assumptions to Determine Net Periodic Benefit Cost (Detail)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Compensation And Retirement Disclosure [Abstract]      
Weighted average discount rate 3.55% 4.39% 3.63%
Expected return on plan assets 6.00% 6.00% 6.00%
Expected rate of increase in future compensation levels 0.00% 0.00% 0.00%
v3.3.1.900
Commitments and Contingencies - Additional Information (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2015
USD ($)
Commitments And Contingencies [Line Items]  
Contractual commitments related to its limited partnership investments $ 90.2
Maximum [Member]  
Commitments And Contingencies [Line Items]  
Contractual commitments period 13 years
v3.3.1.900
Leases - Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases (Detail)
$ in Millions
Dec. 31, 2015
USD ($)
Leases [Abstract]  
2016 $ 10.3
2017 9.2
2018 7.1
2019 5.9
2020 3.3
Thereafter 4.4
Total $ 40.2
v3.3.1.900
Lease - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Leases [Abstract]      
Operating leases expense $ 14.2 $ 14.7 $ 14.6
v3.3.1.900
Segment Information - Additional Information (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2015
USD ($)
Segment
Dec. 31, 2014
USD ($)
Segment Reporting [Abstract]    
Number of reportable segments | Segment 4  
Assets associated with trade capital providers | $ $ 377.1 $ 315.4
v3.3.1.900
Segment Information - Revenue and Income (Loss) Before Income Taxes for Each Segment (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Segment Reporting Information [Line Items]                      
Earned premiums                 $ 1,371.9 $ 1,338.1 $ 1,303.8
Net investment income                 85.6 86.6 100.0
Net realized investment and other gains                 27.1 94.0 71.3
Total revenue $ 369.1 $ 371.0 $ 373.1 $ 371.4 $ 412.1 $ 371.3 $ 375.2 $ 360.1 1,484.6 1,518.7 1,475.1
Income (loss) before income taxes $ 44.2 $ 36.2 $ 34.7 $ 62.4 $ 80.3 $ 48.3 $ 44.7 $ 42.7 177.5 216.0 179.7
Corporate and Other [Member]                      
Segment Reporting Information [Line Items]                      
Net investment income                 2.6 3.1 4.8
Income (loss) before income taxes                 (33.4) (35.1) (40.4)
Operating Segments [Members]                      
Segment Reporting Information [Line Items]                      
Income (loss) before income taxes                 183.8 157.1 148.8
Excess and Surplus Lines [Member]                      
Segment Reporting Information [Line Items]                      
Earned premiums                 525.3 485.2 460.2
Net investment income                 35.2 36.7 42.2
Excess and Surplus Lines [Member] | Operating Segments [Members]                      
Segment Reporting Information [Line Items]                      
Income (loss) before income taxes                 96.0 106.0 89.4
Commercial Specialty [Member]                      
Segment Reporting Information [Line Items]                      
Earned premiums                 290.1 291.9 299.0
Net investment income                 18.5 18.7 22.8
Commercial Specialty [Member] | Operating Segments [Members]                      
Segment Reporting Information [Line Items]                      
Income (loss) before income taxes                 29.9 8.9 21.4
International Specialty [Member]                      
Segment Reporting Information [Line Items]                      
Earned premiums                 148.7 148.3 142.4
Net investment income                 11.8 8.2 8.4
International Specialty [Member] | Operating Segments [Members]                      
Segment Reporting Information [Line Items]                      
Income (loss) before income taxes                 31.3 21.1 11.3
Syndicate 1200 [Member]                      
Segment Reporting Information [Line Items]                      
Earned premiums                 407.4 411.1 401.7
Net investment income                 9.2 10.2 11.0
Syndicate 1200 [Member] | Operating Segments [Members]                      
Segment Reporting Information [Line Items]                      
Income (loss) before income taxes                 33.8 44.1 37.3
Run Off Lines [Member]                      
Segment Reporting Information [Line Items]                      
Earned premiums                 0.4 1.6 0.5
Net investment income                 8.3 9.7 10.8
Run Off Lines [Member] | Operating Segments [Members]                      
Segment Reporting Information [Line Items]                      
Income (loss) before income taxes                 $ (7.2) $ (23.0) $ (10.6)
v3.3.1.900
Segment Information - Schedule of Earned Premiums by Geographic Location (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total earned premiums $ 1,371.9 $ 1,338.1 $ 1,303.8
Bermuda [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total earned premiums 103.4 101.5 101.7
Brazil [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total earned premiums 43.1 44.3 38.7
Malta [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total earned premiums 1.9 2.1 1.8
United Kingdom [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total earned premiums 407.4 411.7 401.7
United States [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total earned premiums $ 816.1 $ 778.5 $ 759.9
v3.3.1.900
Segment Information - Identifiable Assets (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets $ 6,630.1 $ 6,356.3
Excess and Surplus Lines [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets 2,439.9 2,344.0
Commercial Specialty [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets 1,360.7 1,307.0
International Specialty [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets 793.6 776.8
Syndicate 1200 [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets 1,371.2 1,258.5
Run Off Lines [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets 527.2 550.5
Corporate and Other [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets $ 137.5 $ 119.5
v3.3.1.900
Segment Information - Schedule of Goodwill and Intangible Assets Net of Accumulated Amortization (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Segment Reporting Information [Line Items]    
Goodwill $ 152.2 $ 152.2
Intangible assets, net of accumulated amortization 73.3 78.6
Excess and Surplus Lines [Member]    
Segment Reporting Information [Line Items]    
Goodwill 76.4 76.4
Intangible assets, net of accumulated amortization 2.2 2.8
Commercial Specialty [Member]    
Segment Reporting Information [Line Items]    
Goodwill 47.1 47.1
Intangible assets, net of accumulated amortization 4.1 5.5
Syndicate 1200 [Member]    
Segment Reporting Information [Line Items]    
Goodwill 28.7 28.7
Intangible assets, net of accumulated amortization $ 67.0 $ 70.3
v3.3.1.900
Run-Off Lines - Gross Reserves for Run-Off Lines (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]    
Total Asbestos and Environmental $ 46.4 $ 53.9
Total Run-off Lines 306.3 318.5
Reinsurance Assumed [Member]    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]    
Total Asbestos and Environmental 34.6 40.1
Other [Member]    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]    
Total Asbestos and Environmental 11.8 13.8
Risk Management [Member]    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]    
Total Run-off Lines 252.2 257.1
Run-Off Reinsurance Lines [Member]    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]    
Total Run-off Lines 3.0 4.1
Other Run-Off Lines [Member]    
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]    
Total Run-off Lines $ 4.7 $ 3.4
v3.3.1.900
Run-Off Lines - Total Gross Reserves for Asbestos Exposure (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Total direct written reserves $ 10.7 $ 11.1 $ 9.4
Total assumed domestic reserves 26.7 30.6 33.7
Total assumed London reserves 5.4 6.1 7.6
Total asbestos reserves 42.8 47.8 50.7
Case Reserves [Member]      
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Total direct written reserves 2.0 2.5 1.7
Total assumed domestic reserves 12.2 13.2 15.7
Total assumed London reserves 4.0 4.7 5.8
ULAE [Member]      
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Total direct written reserves 0.5 1.0 1.3
Total assumed domestic reserves 0.8 1.6 2.2
Total assumed London reserves 0.0 0.2 0.4
IBNR [Member]      
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Total direct written reserves 8.2 7.6 6.4
Total assumed domestic reserves 13.7 15.8 15.8
Total assumed London reserves $ 1.4 $ 1.2 $ 1.4
v3.3.1.900
Run-Off Lines - Net Underwriting Results for Run-Off Lines (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Total Asbestos and Environmental $ (4.4) $ (13.3) $ (11.0)
Total Run-off Lines (14.1) (31.0) (19.6)
Reinsurance Assumed [Member]      
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Total Asbestos and Environmental (1.0) (8.3) (3.8)
Other [Member]      
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Total Asbestos and Environmental (3.4) (5.0) (7.2)
Risk Management [Member]      
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Total Run-off Lines (8.2) (15.5) (5.9)
Run-Off Reinsurance Lines [Member]      
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Total Run-off Lines 2.0 (1.5) (1.9)
Other Run-Off Lines [Member]      
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]      
Total Run-off Lines $ (3.5) $ (0.7) $ (0.8)
v3.3.1.900
Statutory Accounting Principle - Statutory Capital and Surplus for Principal Operating Subsidiaries (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Bermuda [Member]    
Statutory Accounting Practices [Line Items]    
Statutory capital and surplus $ 1,260.1 $ 1,261.1
United Kingdom [Member]    
Statutory Accounting Practices [Line Items]    
Statutory capital and surplus 232.8 224.5
United States [Member]    
Statutory Accounting Practices [Line Items]    
Statutory capital and surplus $ 854.5 $ 790.4
v3.3.1.900
Statutory Accounting Principles - Statutory Net Income (Loss) for Principal Operating Subsidiaries (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Bermuda [Member]      
Statutory Accounting Practices [Line Items]      
Statutory net income (loss) $ 182.2 $ 128.2 $ 124.2
United Kingdom [Member]      
Statutory Accounting Practices [Line Items]      
Statutory net income (loss) 34.8 28.7 42.3
United States [Member]      
Statutory Accounting Practices [Line Items]      
Statutory net income (loss) $ 94.4 $ 117.7 $ 117.4
v3.3.1.900
Statutory Accounting Principles - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Agro Re [Member]        
Statutory Accounting Practices [Line Items]        
Maximum permissible limit for dividend   25.00%    
Reduction in total statutory capital   15.00%    
Maximum permitted amount of dividends   $ 315.2    
Cash dividends   41.0 $ 40.9 $ 84.5
Rockwood Casualty Insurance Company [Member]        
Statutory Accounting Practices [Line Items]        
Cash dividends     20.0  
Dividend received from subsidiary       9.5
Rockwood Casualty Insurance Company [Member] | Scenario Forecast [Member]        
Statutory Accounting Practices [Line Items]        
Maximum permitted amount of dividends $ 18.2      
Argonaut Insurance Company [Member]        
Statutory Accounting Practices [Line Items]        
Cash dividends     0.1  
Dividends, Securities     48.7 24.7
Value of ordinary dividends     48.8 24.8
Dividend received from subsidiary       0.1
Argonaut Insurance Company [Member] | Scenario Forecast [Member]        
Statutory Accounting Practices [Line Items]        
Maximum permitted amount of dividends 41.6      
Colony Insurance Company [Member]        
Statutory Accounting Practices [Line Items]        
Cash dividends     0.2  
Dividends, Securities     55.0 75.9
Value of extraordinary dividends     55.2 76.2
Dividend received from subsidiary       $ 0.3
Colony Insurance Company [Member] | Scenario Forecast [Member]        
Statutory Accounting Practices [Line Items]        
Maximum permitted amount of dividends $ 35.0      
Minimum [Member]        
Statutory Accounting Practices [Line Items]        
Minimum statutory capital and surplus balance   $ 345.9 $ 332.1  
v3.3.1.900
Insurance Assessments - Additional Information (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Insurance [Abstract]    
Insurance assessments on current insolvencies $ 4.1 $ 17.0
v3.3.1.900
Transactions with Related Parties - Additional Information (Detail) - Kinetica [Member]
$ in Millions
Dec. 31, 2015
USD ($)
Schedule Of Other Related Party Transactions [Line Items]  
Surety bonds issued $ 13
Percentage of investment ownership 10.00%
v3.3.1.900
Unaudited Quarterly Financial Data - Quarterly Financial Data (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]                      
Total revenue $ 369.1 $ 371.0 $ 373.1 $ 371.4 $ 412.1 $ 371.3 $ 375.2 $ 360.1 $ 1,484.6 $ 1,518.7 $ 1,475.1
Net income before income taxes 44.2 36.2 34.7 62.4 80.3 48.3 44.7 42.7 177.5 216.0 179.7
Net income $ 41.2 $ 35.3 $ 27.9 $ 58.8 $ 59.7 $ 44.7 $ 38.6 $ 40.2 $ 163.2 $ 183.2 $ 143.2
Net income per common share:                      
Basic $ 1.48 [1] $ 1.27 [1] $ 1.00 [1] $ 2.09 [1] $ 2.11 [1] $ 1.57 [1] $ 1.34 [1] $ 1.38 [1] $ 5.84 [1] $ 6.39 [1] $ 4.85
Diluted $ 1.44 [1] $ 1.24 [1] $ 0.98 [1] $ 2.05 [1] $ 2.07 [1] $ 1.54 [1] $ 1.32 [1] $ 1.36 [1] $ 5.72 [1] $ 6.27 [1] $ 4.67
Comprehensive income (loss) $ 29.2 $ (18.3) $ 18.9 $ 36.8 $ 31.3 $ 6.8 $ 64.1 $ 41.3 $ 66.6 $ 143.5 $ 101.5
[1] Basic and diluted net income per common share are computed independently for each quarter and full year based on the respective average number of common shares outstanding; therefore, the sum of the quarterly net income per common share data may not equal the net income per common share for the year.
v3.3.1.900
Information Provided in Connection With Outstanding Debt of Subsidiaries - Additional Information (Detail) - Senior Unsecured Fixed Rate Notes [Member] - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2012
Schedule Of Equity Method Investments [Line Items]    
Principal amount of senior note   $ 143,750,000
Debt instrument interest rate stated percentage   6.50%
Debt instrument maturity date Sep. 15, 2042  
Initial maturity date Sep. 15, 2017  
Debt Instrument, Redemption Price, Percentage   100.00%
v3.3.1.900
Information Provided in Connection with Outstanding Debt of Subsidiaries - Condensed Consolidating Balance Sheet (Detail) - USD ($)
$ in Millions
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Assets        
Investments $ 4,115.7 $ 4,097.9    
Cash 121.7 81.0 $ 157.4 $ 95.8
Accrued investment income 21.6 22.1    
Premiums receivable 404.5 353.6    
Reinsurance recoverables 1,121.1 997.2    
Goodwill and other intangible assets, net 225.5 230.8    
Current income taxes receivable, net 11.6 14.9    
Deferred acquisition costs, net 132.4 124.6    
Ceded unearned premiums 250.8 207.6    
Other assets 225.2 226.6    
Due (to) from affiliates 0.0 0.0    
Intercompany note receivable 0.0 0.0    
Investments in subsidiaries 0.0 0.0    
Total assets 6,630.1 6,356.3    
Liabilities and Shareholders' Equity        
Reserves for losses and loss adjustment expenses 3,123.6 3,042.4 3,230.3  
Unearned premiums 886.7 817.2    
Funds held and ceded reinsurance payable, net 390.0 233.8    
Long-term debt 371.7 378.5    
Deferred tax liabilities, net 23.6 53.0    
Accrued underwriting expenses and other liabilities 166.4 184.7    
Total liabilities 4,962.0 4,709.6    
Total shareholders' equity 1,668.1 1,646.7 1,563.0 1,514.1
Total liabilities and shareholders' equity 6,630.1 6,356.3    
Argo Group International Holdings, Ltd (Parent Guarantor) [Member]        
Assets        
Investments 6.2 0.7    
Cash 0.0 0.0 0.0 0.0
Accrued investment income 0.0 0.0    
Premiums receivable 0.0 0.0    
Reinsurance recoverables 0.0 0.0    
Goodwill and other intangible assets, net 0.0 0.0    
Current income taxes receivable, net 0.0 0.0    
Deferred acquisition costs, net 0.0 0.0    
Ceded unearned premiums 0.0 0.0    
Other assets 8.2 9.6    
Due (to) from affiliates (17.5) 2.9    
Intercompany note receivable 0.0 0.0    
Investments in subsidiaries 1,715.9 1,698.0    
Total assets 1,712.8 1,711.2    
Liabilities and Shareholders' Equity        
Reserves for losses and loss adjustment expenses 0.0 0.0    
Unearned premiums 0.0 0.0    
Funds held and ceded reinsurance payable, net 0.0 0.0    
Long-term debt 28.4 49.0    
Deferred tax liabilities, net 0.0 0.0    
Accrued underwriting expenses and other liabilities 16.3 15.5    
Total liabilities 44.7 64.5    
Total shareholders' equity 1,668.1 1,646.7    
Total liabilities and shareholders' equity 1,712.8 1,711.2    
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member]        
Assets        
Investments 2,761.0 2,841.5    
Cash 88.8 49.3 132.1 73.9
Accrued investment income 16.4 17.8    
Premiums receivable 166.4 154.6    
Reinsurance recoverables 1,212.2 1,173.6    
Goodwill and other intangible assets, net 129.8 131.7    
Current income taxes receivable, net 4.7 10.1    
Deferred acquisition costs, net 58.2 58.0    
Ceded unearned premiums 125.8 98.5    
Other assets 156.2 174.1    
Due (to) from affiliates (2.3) (19.8)    
Intercompany note receivable 49.8 72.0    
Investments in subsidiaries 0.0 0.0    
Total assets 4,767.0 4,761.4    
Liabilities and Shareholders' Equity        
Reserves for losses and loss adjustment expenses 2,194.1 2,136.4    
Unearned premiums 501.5 448.9    
Funds held and ceded reinsurance payable, net 702.6 675.1    
Long-term debt 288.7 288.7    
Deferred tax liabilities, net 11.9 41.2    
Accrued underwriting expenses and other liabilities 95.4 104.2    
Total liabilities 3,794.2 3,694.5    
Total shareholders' equity 972.8 1,066.9    
Total liabilities and shareholders' equity 4,767.0 4,761.4    
Other Subsidiaries and Eliminations [Member]        
Assets        
Investments [1] 1,348.5 1,255.7    
Cash [1] 32.9 31.7 25.3 21.9
Accrued investment income [1] 5.2 4.3    
Premiums receivable [1] 238.1 199.0    
Reinsurance recoverables [1] (91.1) (176.4)    
Goodwill and other intangible assets, net [1] 95.7 99.1    
Current income taxes receivable, net [1] 6.9 4.8    
Deferred acquisition costs, net [1] 74.2 66.6    
Ceded unearned premiums [1] 125.0 109.1    
Other assets [1] 60.8 67.9    
Due (to) from affiliates [1] 2.3 19.8    
Intercompany note receivable [1] (49.8) (72.0)    
Investments in subsidiaries [1] 0.0 0.0    
Total assets [1] 1,848.7 1,609.6    
Liabilities and Shareholders' Equity        
Reserves for losses and loss adjustment expenses [1] 929.5 906.0    
Unearned premiums [1] 385.2 368.3    
Funds held and ceded reinsurance payable, net [1] (312.6) (441.3)    
Long-term debt [1] 54.6 61.4    
Deferred tax liabilities, net [1] 11.7 11.8    
Accrued underwriting expenses and other liabilities [1] 54.7 65.0    
Total liabilities [1] 1,123.1 971.2    
Total shareholders' equity [1] 725.6 638.4    
Total liabilities and shareholders' equity [1] 1,848.7 1,609.6    
Consolidating Adjustments [Member]        
Assets        
Investments [2] 0.0 0.0    
Cash [2] 0.0 0.0 $ 0.0 $ 0.0
Accrued investment income [2] 0.0 0.0    
Premiums receivable [2] 0.0 0.0    
Reinsurance recoverables [2] 0.0 0.0    
Goodwill and other intangible assets, net [2] 0.0 0.0    
Current income taxes receivable, net [2] 0.0 0.0    
Deferred acquisition costs, net [2] 0.0 0.0    
Ceded unearned premiums [2] 0.0 0.0    
Other assets [2] 0.0 (25.0)    
Due (to) from affiliates [2] 17.5 (2.9)    
Intercompany note receivable [2] 0.0 0.0    
Investments in subsidiaries [2] (1,715.9) (1,698.0)    
Total assets [2] (1,698.4) (1,725.9)    
Liabilities and Shareholders' Equity        
Reserves for losses and loss adjustment expenses [2] 0.0 0.0    
Unearned premiums [2] 0.0 0.0    
Funds held and ceded reinsurance payable, net [2] 0.0 0.0    
Long-term debt [2] 0.0 (20.6)    
Deferred tax liabilities, net [2] 0.0 0.0    
Accrued underwriting expenses and other liabilities [2] 0.0 0.0    
Total liabilities [2] 0.0 (20.6)    
Total shareholders' equity [2] (1,698.4) (1,705.3)    
Total liabilities and shareholders' equity [2] $ (1,698.4) $ (1,725.9)    
[1] Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
[2] Includes all Argo Group parent company eliminations.
v3.3.1.900
Information Provided in Connection with Outstanding Debt of Subsidiaries - Condensed Consolidating Statement of Income (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Premiums and other revenue:                      
Earned premiums                 $ 1,371.9 $ 1,338.1 $ 1,303.8
Net investment income                 85.6 86.6 100.0
Net realized investment and other gains                 27.1 94.0 71.3
Total revenue $ 369.1 $ 371.0 $ 373.1 $ 371.4 $ 412.1 $ 371.3 $ 375.2 $ 360.1 1,484.6 1,518.7 1,475.1
Expenses:                      
Losses and loss adjustment expenses                 766.1 747.4 742.0
Other reinsurance-related expenses                 0.0 0.0 19.2
Underwriting, acquisition and insurance expenses                 539.6 539.2 510.8
Interest expense                 19.0 19.9 20.2
Fee and other expense, net                 0.7 0.6 4.9
Foreign currency exchange loss (gains)                 (18.3) (7.8) (1.7)
Impairment of intangible assets                 0.0 3.4 0.0
Total expenses                 1,307.1 1,302.7 1,295.4
Income before income taxes 44.2 36.2 34.7 62.4 80.3 48.3 44.7 42.7 177.5 216.0 179.7
Provision for income taxes                 14.3 32.8 36.5
Net income before equity in earnings of subsidiaries                 163.2 183.2 143.2
Equity in undistributed earnings of subsidiaries                 0.0 0.0 0.0
Net income $ 41.2 $ 35.3 $ 27.9 $ 58.8 $ 59.7 $ 44.7 $ 38.6 $ 40.2 163.2 183.2 143.2
Argo Group International Holdings, Ltd (Parent Guarantor) [Member]                      
Premiums and other revenue:                      
Earned premiums                 0.0 0.0 0.0
Net investment income                 40.1 40.5 84.5
Net realized investment and other gains                 0.0 2.0 0.0
Total revenue                 40.1 42.5 84.5
Expenses:                      
Losses and loss adjustment expenses                 0.0 0.0 0.0
Other reinsurance-related expenses                     0.0
Underwriting, acquisition and insurance expenses                 19.0 17.3 27.4
Interest expense                 1.5 2.3 3.3
Fee and other expense, net                 0.0 0.0 0.0
Foreign currency exchange loss (gains)                 0.0 0.0 0.0
Impairment of intangible assets                 0.0 0.0  
Total expenses                 20.5 19.6 30.7
Income before income taxes                 19.6 22.9 53.8
Provision for income taxes                 0.0 0.0 0.0
Net income before equity in earnings of subsidiaries                 19.6 22.9 53.8
Equity in undistributed earnings of subsidiaries                 143.6 160.3 89.4
Net income                 163.2 183.2 143.2
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member]                      
Premiums and other revenue:                      
Earned premiums                 497.3 461.0 439.9
Net investment income                 56.0 56.7 73.4
Net realized investment and other gains                 34.8 86.9 72.2
Total revenue                 588.1 604.6 585.5
Expenses:                      
Losses and loss adjustment expenses                 304.2 285.6 268.6
Other reinsurance-related expenses                     0.0
Underwriting, acquisition and insurance expenses                 198.4 199.9 176.9
Interest expense                 15.3 15.2 15.2
Fee and other expense, net                 4.3 2.4 4.1
Foreign currency exchange loss (gains)                 1.0 0.4 (0.3)
Impairment of intangible assets                 0.0 3.4  
Total expenses                 523.2 506.9 464.5
Income before income taxes                 64.9 97.7 121.0
Provision for income taxes                 12.9 27.5 34.1
Net income before equity in earnings of subsidiaries                 52.0 70.2 86.9
Equity in undistributed earnings of subsidiaries                 0.0 0.0 0.0
Net income                 52.0 70.2 86.9
Other Subsidiaries and Eliminations [Member]                      
Premiums and other revenue:                      
Earned premiums [1]                 874.6 877.1 863.9
Net investment income [1]                 30.5 (10.6) (57.9)
Net realized investment and other gains [1]                 (7.7) 7.1 (0.9)
Total revenue [1]                 897.4 873.6 805.1
Expenses:                      
Losses and loss adjustment expenses [1]                 461.9 461.8 473.4
Other reinsurance-related expenses [1]                     19.2
Underwriting, acquisition and insurance expenses [1]                 322.2 322.0 306.5
Interest expense [1]                 2.2 2.7 2.9
Fee and other expense, net [1]                 (3.6) (1.8) 0.8
Foreign currency exchange loss (gains) [1]                 (19.3) (8.2) (1.4)
Impairment of intangible assets [1]                 0.0 0.0  
Total expenses [1]                 763.4 776.5 801.4
Income before income taxes [1]                 134.0 97.1 3.7
Provision for income taxes [1]                 1.4 5.3 2.4
Net income before equity in earnings of subsidiaries [1]                 132.6 91.8 1.3
Equity in undistributed earnings of subsidiaries [1]                 0.0 0.0 0.0
Net income [1]                 132.6 91.8 1.3
Consolidating Adjustments [Member]                      
Premiums and other revenue:                      
Earned premiums [2]                 0.0 0.0 0.0
Net investment income [2]                 (41.0) 0.0 0.0
Net realized investment and other gains [2]                 0.0 (2.0) 0.0
Total revenue [2]                 (41.0) (2.0) 0.0
Expenses:                      
Losses and loss adjustment expenses [2]                 0.0 0.0 0.0
Other reinsurance-related expenses [2]                     0.0
Underwriting, acquisition and insurance expenses [2]                 0.0 0.0 0.0
Interest expense [2]                 0.0 (0.3) (1.2)
Fee and other expense, net [2]                 0.0 0.0 0.0
Foreign currency exchange loss (gains) [2]                 0.0 0.0 0.0
Impairment of intangible assets [2]                 0.0 0.0  
Total expenses [2]                 0.0 (0.3) (1.2)
Income before income taxes [2]                 (41.0) (1.7) 1.2
Provision for income taxes [2]                 0.0 0.0 0.0
Net income before equity in earnings of subsidiaries [2]                 (41.0) (1.7) 1.2
Equity in undistributed earnings of subsidiaries [2]                 (143.6) (160.3) (89.4)
Net income [2]                 $ (184.6) $ (162.0) $ (88.2)
[1] Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
[2] Includes all Argo Group parent company eliminations.
v3.3.1.900
Information Provided in Connection with Outstanding Debt of Subsidiaries - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]      
Net cash flows (used by) from operating activities $ 282.6 $ 130.5 $ (0.2)
Cash flows from investing activities:      
Proceeds from sales of investments 967.9 1,262.0 1,966.3
Maturities and mandatory calls of fixed maturity investments 843.9 323.0 281.8
Purchases of investments (2,034.1) (1,736.8) (1,975.8)
Change in short-term investments and foreign regulatory deposits 49.6 96.5 (153.0)
Settlements of foreign currency exchange forward contracts (10.1) (1.1) (3.9)
Issuance of intercompany note, net 0.0 0.0 0.0
Redemption of PXRE Capital Trust V 0.0    
Purchases of fixed assets and other, net (10.8) (64.9) 5.4
Cash (used) provided by investing activities (193.6) (121.3) 120.8
Cash flows from financing activities:      
Borrowings under intercompany note, net   0.0 0.0
Proceeds from issuance of senior unsecured fixed rate notes     0.0
Redemption of trust preferred securities, net 0.0 (18.0) 0.0
Activity under stock incentive plans 1.8 4.6 2.6
Payment on note payable 0.0 (0.1) 0.0
Repurchase of Company's common shares (29.7) (50.8) (46.5)
Excess tax expense from share-based payment arrangements 0.6 0.1 0.2
Payment of cash dividends to common shareholders (22.7) (18.2) (15.8)
Cash used by financing activities (50.0) (82.4) (59.5)
Effect of exchange rate changes on cash 1.7 (3.2) 0.5
Change in cash 40.7 (76.4) 61.6
Cash, beginning of year 81.0 157.4 95.8
Cash, end of year 121.7 81.0 157.4
Argo Group International Holdings, Ltd (Parent Guarantor) [Member]      
Condensed Financial Statements, Captions [Line Items]      
Net cash flows (used by) from operating activities 32.7 25.7 63.2
Cash flows from investing activities:      
Proceeds from sales of investments 0.0 0.0 0.0
Maturities and mandatory calls of fixed maturity investments 0.0 0.0 0.0
Purchases of investments 0.0 0.0 0.0
Change in short-term investments and foreign regulatory deposits 0.9 0.5 (1.4)
Settlements of foreign currency exchange forward contracts 1.5 1.3 0.7
Issuance of intercompany note, net 0.0 0.0 0.0
Redemption of PXRE Capital Trust V 0.0    
Purchases of fixed assets and other, net 3.8 (7.0) 0.0
Cash (used) provided by investing activities 6.2 (5.2) (0.7)
Cash flows from financing activities:      
Borrowings under intercompany note, net   (6.9) (49.3)
Proceeds from issuance of senior unsecured fixed rate notes     0.0
Redemption of trust preferred securities, net (18.0) 0.0 0.0
Activity under stock incentive plans 1.8 4.6 2.6
Payment on note payable   0.0 0.0
Repurchase of Company's common shares 0.0 0.0 0.0
Excess tax expense from share-based payment arrangements 0.0 0.0 0.0
Payment of cash dividends to common shareholders (22.7) (18.2) (15.8)
Cash used by financing activities (38.9) (20.5) (62.5)
Effect of exchange rate changes on cash 0.0 0.0 0.0
Change in cash 0.0 0.0 0.0
Cash, beginning of year 0.0 0.0 0.0
Cash, end of year 0.0 0.0 0.0
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member]      
Condensed Financial Statements, Captions [Line Items]      
Net cash flows (used by) from operating activities 116.4 43.2 62.5
Cash flows from investing activities:      
Proceeds from sales of investments 631.1 803.8 1,130.2
Maturities and mandatory calls of fixed maturity investments 681.8 192.1 168.9
Purchases of investments (1,384.5) (1,126.1) (1,156.7)
Change in short-term investments and foreign regulatory deposits 14.9 76.0 (119.1)
Settlements of foreign currency exchange forward contracts 0.0 0.0 0.0
Issuance of intercompany note, net 7.5 14.5 35.0
Redemption of PXRE Capital Trust V 18.0    
Purchases of fixed assets and other, net (16.6) (35.5) (16.3)
Cash (used) provided by investing activities (47.8) (75.2) 42.0
Cash flows from financing activities:      
Borrowings under intercompany note, net   0.0 0.0
Proceeds from issuance of senior unsecured fixed rate notes     0.0
Redemption of trust preferred securities, net 0.0 0.0 0.0
Activity under stock incentive plans 0.0 0.0 0.0
Payment on note payable   (0.1) 0.0
Repurchase of Company's common shares (29.7) (50.8) (46.5)
Excess tax expense from share-based payment arrangements 0.6 0.1 0.2
Payment of cash dividends to common shareholders 0.0 0.0 0.0
Cash used by financing activities (29.1) (50.8) (46.3)
Effect of exchange rate changes on cash 0.0 0.0 0.0
Change in cash 39.5 (82.8) 58.2
Cash, beginning of year 49.3 132.1 73.9
Cash, end of year 88.8 49.3 132.1
Other Subsidiaries and Eliminations [Member]      
Condensed Financial Statements, Captions [Line Items]      
Net cash flows (used by) from operating activities [1] 133.5 37.2 (125.9)
Cash flows from investing activities:      
Proceeds from sales of investments [1] 336.8 458.2 836.1
Maturities and mandatory calls of fixed maturity investments [1] 162.1 130.9 112.9
Purchases of investments [1] (649.6) (610.7) (819.1)
Change in short-term investments and foreign regulatory deposits [1] 33.8 20.0 (32.5)
Settlements of foreign currency exchange forward contracts [1] (11.6) (2.4) (4.6)
Issuance of intercompany note, net [1] (7.5) (7.6) 14.3
Redemption of PXRE Capital Trust V [1] (18.0)    
Purchases of fixed assets and other, net [1] 2.0 (16.0) 21.7
Cash (used) provided by investing activities [1] (152.0) (27.6) 128.8
Cash flows from financing activities:      
Borrowings under intercompany note, net [1]   0.0 0.0
Proceeds from issuance of senior unsecured fixed rate notes [1]     0.0
Redemption of trust preferred securities, net [1] 18.0 0.0 0.0
Activity under stock incentive plans [1] 0.0 0.0 0.0
Payment on note payable [1]   0.0 0.0
Repurchase of Company's common shares [1] 0.0 0.0 0.0
Excess tax expense from share-based payment arrangements [1] 0.0 0.0 0.0
Payment of cash dividends to common shareholders [1] 0.0 0.0 0.0
Cash used by financing activities [1] 18.0 0.0 0.0
Effect of exchange rate changes on cash [1] 1.7 (3.2) 0.5
Change in cash [1] 1.2 6.4 3.4
Cash, beginning of year [1] 31.7 25.3 21.9
Cash, end of year [1] 32.9 31.7 25.3
Consolidating Adjustments [Member]      
Condensed Financial Statements, Captions [Line Items]      
Net cash flows (used by) from operating activities [2] 0.0 24.4 0.0
Cash flows from investing activities:      
Proceeds from sales of investments [2] 0.0 0.0 0.0
Maturities and mandatory calls of fixed maturity investments [2] 0.0 0.0 0.0
Purchases of investments [2] 0.0 0.0 0.0
Change in short-term investments and foreign regulatory deposits [2] 0.0 0.0 0.0
Settlements of foreign currency exchange forward contracts [2] 0.0 0.0 0.0
Issuance of intercompany note, net [2] 0.0 (6.9) (49.3)
Redemption of PXRE Capital Trust V [2] 0.0    
Purchases of fixed assets and other, net [2] 0.0 (6.4) 0.0
Cash (used) provided by investing activities [2] 0.0 (13.3) (49.3)
Cash flows from financing activities:      
Borrowings under intercompany note, net [2]   6.9 49.3
Proceeds from issuance of senior unsecured fixed rate notes [2]     0.0
Redemption of trust preferred securities, net [2] 0.0 (18.0) 0.0
Activity under stock incentive plans [2] 0.0 0.0 0.0
Payment on note payable [2]   0.0 0.0
Repurchase of Company's common shares [2] 0.0 0.0 0.0
Excess tax expense from share-based payment arrangements [2] 0.0 0.0 0.0
Payment of cash dividends to common shareholders [2] 0.0 0.0 0.0
Cash used by financing activities [2] 0.0 (11.1) 49.3
Effect of exchange rate changes on cash [2] 0.0 0.0 0.0
Change in cash [2] 0.0 0.0 0.0
Cash, beginning of year [2] 0.0 0.0 0.0
Cash, end of year [2] $ 0.0 $ 0.0 $ 0.0
[1] Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
[2] Includes all Argo Group parent company eliminations.
v3.3.1.900
Schedule II - Schedule of Balance Sheets (Detail) - USD ($)
Dec. 31, 2015
Dec. 31, 2014
Jul. 16, 2014
Dec. 31, 2013
Dec. 31, 2012
Condensed Financial Statements, Captions [Line Items]          
Short-term investments $ 210,800,000 $ 258,300,000      
Investment in subsidiaries 0 0      
Other assets 225,200,000 226,600,000      
Total assets 6,630,100,000 6,356,300,000      
Junior subordinated debentures, Amount 172,700,000 172,700,000 $ 20,000,000    
Accrued underwriting expenses 133,900,000 143,100,000      
Total liabilities 4,962,000,000 4,709,600,000      
Shareholders' equity 1,668,100,000 1,646,700,000   $ 1,563,000,000 $ 1,514,100,000
Total liabilities and shareholders' equity 6,630,100,000 6,356,300,000      
Argo Group International Holdings, Ltd (Parent Guarantor) [Member]          
Condensed Financial Statements, Captions [Line Items]          
Other investments, unrealized gain (loss) on foreign currency exchange forward contracts 5,200,000 (1,200,000)      
Short-term investments 1,000,000 1,900,000      
Investment in subsidiaries 1,715,900,000 1,698,000,000      
Due (to) from subsidiaries (17,500,000) 2,900,000      
Other assets 8,200,000 9,600,000      
Total assets 1,712,800,000 1,711,200,000      
Junior subordinated debentures, Amount 28,400,000 49,000,000      
Accrued underwriting expenses 16,300,000 15,500,000      
Total liabilities 44,700,000 64,500,000      
Shareholders' equity 1,668,100,000 1,646,700,000      
Total liabilities and shareholders' equity $ 1,712,800,000 $ 1,711,200,000      
v3.3.1.900
Schedule II - Schedule of Statements of Income (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]                      
Net investment income                 $ 85.6 $ 86.6 $ 100.0
Net realized investment and other gains                 27.1 94.0 71.3
Total revenue $ 369.1 $ 371.0 $ 373.1 $ 371.4 $ 412.1 $ 371.3 $ 375.2 $ 360.1 1,484.6 1,518.7 1,475.1
Interest expense                 19.0 19.9 20.2
Other expenses                 539.6 539.2 510.8
Net income before equity in earnings of subsidiaries                 163.2 183.2 143.2
Equity in undistributed earnings of subsidiaries                 0.0 0.0 0.0
Net income $ 41.2 $ 35.3 $ 27.9 $ 58.8 $ 59.7 $ 44.7 $ 38.6 $ 40.2 163.2 183.2 143.2
Argo Group International Holdings, Ltd (Parent Guarantor) [Member]                      
Condensed Financial Statements, Captions [Line Items]                      
Net investment income                 40.1 40.5 84.5
Net realized investment and other gains                 0.0 2.0 0.0
Total revenue                 40.1 42.5 84.5
Interest expense                 1.5 2.3 3.3
Other expenses                 19.0 17.3 27.4
Total expenses                 20.5 19.6 30.7
Net income before equity in earnings of subsidiaries                 19.6 22.9 53.8
Equity in undistributed earnings of subsidiaries                 143.6 160.3 89.4
Net income                 $ 163.2 $ 183.2 $ 143.2
v3.3.1.900
Schedule II - Schedule of Statements of Income (Parenthetical) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Argo Group International Holdings, Ltd (Parent Guarantor) [Member]    
Condensed Financial Statements, Captions [Line Items]    
Intercompany dividend $ 41.0 $ 40.9
v3.3.1.900
Schedule II - Schedule of Statements of Cash Flows (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]                      
Net income $ 41.2 $ 35.3 $ 27.9 $ 58.8 $ 59.7 $ 44.7 $ 38.6 $ 40.2 $ 163.2 $ 183.2 $ 143.2
Amortization and depreciation                 38.7 37.2 39.6
Share-based payments expense                 29.1 19.6 23.3
Net realized investment and other gains                 (27.1) (94.0) (71.3)
Undistributed earnings of subsidiaries                 0.0 0.0 0.0
Accrued underwriting expenses                 (24.6) 11.7 (4.0)
Other, net                 0.6 28.0 (21.8)
Cash provided (used) by operating activities                 282.6 130.5 (0.2)
Change in short-term investments                 46.1 75.3 (145.3)
Settlements of foreign currency exchange forward contracts                 (10.1) (1.1) (3.9)
Purchases of fixed assets and other, net                 (10.8) (64.9) 5.4
Cash (used) provided by investing activities                 (193.6) (121.3) 120.8
Activity under stock incentive plans                 1.8 4.6 2.6
Redemption of trust preferred securities, net                 0.0 (18.0) 0.0
Payment of cash dividends to common shareholders                 (22.7) (18.2) (15.8)
Cash used by financing activities                 (50.0) (82.4) (59.5)
Change in cash                 40.7 (76.4) 61.6
Cash, beginning of year       81.0       157.4 81.0 157.4 95.8
Cash, end of year 121.7       81.0       121.7 81.0 157.4
Argo Group International Holdings, Ltd (Parent Guarantor) [Member]                      
Condensed Financial Statements, Captions [Line Items]                      
Net income                 163.2 183.2 143.2
Amortization and depreciation                 0.2 0.0 0.7
Share-based payments expense                 8.2 5.7 8.7
Net realized investment and other gains                 0.0 (2.0) 0.0
Undistributed earnings of subsidiaries                 (143.6) (160.3) (89.4)
Prepaid assets                 0.2 2.0 (0.1)
Accrued underwriting expenses                 (2.4) (2.2) (0.9)
Due to subsidiaries                 12.5 (0.6) 0.2
Interest on intercompany note payable                 0.0 0.3 0.8
Other, net                 (5.6) (0.4) 0.0
Cash provided (used) by operating activities                 32.7 25.7 63.2
Change in short-term investments                 0.9 0.5 (1.4)
Settlements of foreign currency exchange forward contracts                 1.5 1.3 0.7
Purchases of fixed assets and other, net                 3.8 (7.0) 0.0
Cash (used) provided by investing activities                 6.2 (5.2) (0.7)
Borrowings under intercompany note payable, net                 0.0 (6.9) (49.3)
Activity under stock incentive plans                 1.8 4.6 2.6
Redemption of trust preferred securities, net                 (18.0) 0.0 0.0
Payment of cash dividends to common shareholders                 (22.7) (18.2) (15.8)
Cash used by financing activities                 (38.9) (20.5) (62.5)
Change in cash                 0.0 0.0 0.0
Cash, beginning of year       $ 0.0       $ 0.0 0.0 0.0 0.0
Cash, end of year $ 0.0       $ 0.0       $ 0.0 $ 0.0 $ 0.0
v3.3.1.900
Schedule III - Supplemental Insurance Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Supplementary Insurance Information By Segment [Line Items]      
Deferred acquisition costs $ 132.4 $ 124.6 $ 113.9
Reserves for Losses and Loss Adjustment Expenses 3,123.6 3,042.4 3,230.3
Unearned Premiums 886.7 817.2 779.1
Earned premiums 1,371.9 1,338.1 1,303.8
Net investment income 85.6 86.6 100.0
Benefits, Claims and Claim Adjustment Expenses 766.1 747.4 742.0
Amortization (Deferral) of Deferred Acquisition Costs (0.9) (5.4) (15.8)
Other Insurance Expenses 540.5 544.6 526.6
Net Premiums Written 1,402.1 1,367.9 1,351.3
Excess and Surplus Lines [Member]      
Supplementary Insurance Information By Segment [Line Items]      
Deferred acquisition costs 38.3 36.9 38.8
Reserves for Losses and Loss Adjustment Expenses 1,204.9 1,165.4 1,171.8
Unearned Premiums 307.1 274.9 264.8
Earned premiums 525.3 485.2 460.2
Net investment income 35.2 36.7 42.2
Benefits, Claims and Claim Adjustment Expenses 291.8 248.0 244.0
Amortization (Deferral) of Deferred Acquisition Costs (1.4) 1.9 (1.4)
Other Insurance Expenses 168.1 159.7 158.6
Net Premiums Written 552.9 487.8 478.7
Commercial Specialty [Member]      
Supplementary Insurance Information By Segment [Line Items]      
Deferred acquisition costs 20.1 22.5 18.1
Reserves for Losses and Loss Adjustment Expenses 683.7 652.2 653.4
Unearned Premiums 194.1 172.9 159.4
Earned premiums 290.1 291.9 299.0
Net investment income 18.5 18.7 22.8
Benefits, Claims and Claim Adjustment Expenses 179.3 189.1 194.0
Amortization (Deferral) of Deferred Acquisition Costs 2.4 (4.3) 0.4
Other Insurance Expenses 90.3 107.8 97.0
Net Premiums Written 285.6 301.1 288.2
International Specialty [Member]      
Supplementary Insurance Information By Segment [Line Items]      
Deferred acquisition costs 2.1 0.8 2.2
Reserves for Losses and Loss Adjustment Expenses 324.7 306.3 295.6
Unearned Premiums 123.3 123.9 117.1
Earned premiums 148.7 148.3 142.4
Net investment income 11.8 8.2 8.4
Benefits, Claims and Claim Adjustment Expenses 72.8 77.8 79.9
Amortization (Deferral) of Deferred Acquisition Costs (2.0) 1.7 (1.0)
Other Insurance Expenses 55.4 52.8 51.1
Net Premiums Written 159.9 156.6 155.4
Syndicate 1200 [Member]      
Supplementary Insurance Information By Segment [Line Items]      
Deferred acquisition costs 71.9 64.4 54.8
Reserves for Losses and Loss Adjustment Expenses 604.0 600.0 777.0
Unearned Premiums 262.2 245.5 237.8
Earned premiums 407.4 411.1 401.7
Net investment income 9.2 10.2 11.0
Benefits, Claims and Claim Adjustment Expenses 213.6 208.1 208.6
Amortization (Deferral) of Deferred Acquisition Costs 0.1 (4.7) (13.8)
Other Insurance Expenses 169.8 172.5 170.0
Net Premiums Written 403.3 420.8 428.5
Run Off Lines [Member]      
Supplementary Insurance Information By Segment [Line Items]      
Deferred acquisition costs 0.0 0.0 0.0
Reserves for Losses and Loss Adjustment Expenses 306.3 318.5 332.5
Unearned Premiums 0.0 0.0 0.0
Earned premiums 0.4 1.6 0.5
Net investment income 8.3 9.7 10.8
Benefits, Claims and Claim Adjustment Expenses 8.6 24.4 15.5
Amortization (Deferral) of Deferred Acquisition Costs 0.0 0.0 0.0
Other Insurance Expenses 5.9 8.2 4.6
Net Premiums Written 0.4 1.6 0.5
Corporate and Other [Member]      
Supplementary Insurance Information By Segment [Line Items]      
Deferred acquisition costs 0.0 0.0 0.0
Reserves for Losses and Loss Adjustment Expenses 0.0 0.0 0.0
Unearned Premiums 0.0 0.0 0.0
Earned premiums 0.0 0.0 0.0
Net investment income 2.6 3.1 4.8
Benefits, Claims and Claim Adjustment Expenses 0.0 0.0 0.0
Amortization (Deferral) of Deferred Acquisition Costs 0.0 0.0 0.0
Other Insurance Expenses 51.0 43.6 45.3
Net Premiums Written $ 0.0 $ 0.0 $ 0.0
v3.3.1.900
Schedule V - Valuation and Qualifying Accounts (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Valuation And Qualifying Accounts [Abstract]      
Valuation allowance for deferred tax asset, Balance at Beginning of Year $ 25.4 $ 56.2 $ 52.5
Valuation allowance for deferred tax asset, Charged to Cost and Expense (1.0) (30.7) (1.0)
Valuation allowance for deferred tax asset, Capital Loss Carryforward 0.0 0.0 0.0
Valuation allowance for deferred tax asset, Net Operating Loss Carryforward 0.0 0.0 0.0
Valuation allowance for deferred tax asset, Charged to Other Accounts (1.6) (0.1) 4.7
Valuation allowance for deferred tax asset, Deductions 0.0 0.0 0.0
Valuation allowance for deferred tax asset, Balance at End of Year $ 22.8 $ 25.4 $ 56.2
v3.3.1.900
Schedule VI - Supplemental Information for Property-Casualty Insurance Companies (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Supplemental Information For Property Casualty Insurance Underwriters [Abstract]      
Deferred acquisition costs $ 132.4 $ 124.6 $ 113.9
Reserves for losses and loss adjustment expenses 3,123.6 3,042.4 3,230.3
Unamortized discount in reserves for losses 14.9 17.6 19.5
Unearned premiums 886.7 817.2 779.1
Premiums earned 1,371.9 1,338.1 1,303.8
Net investment income 85.6 86.6 100.0
Losses and loss adjustment expenses incurred: Current Year 798.5 785.1 775.6
Prior accident years (32.4) (37.7) (33.6)
Losses and loss adjustment expenses incurred 766.1 747.4 742.0
Amortization (Deferral) of Deferred Acquisition Costs (0.9) (5.4) (15.8)
Paid losses and loss adjustment expenses, net of reinsurance 733.5 736.7 753.5
Gross premiums written $ 2,012.1 $ 1,905.4 $ 1,888.4