ARGO GROUP INTERNATIONAL HOLDINGS, LTD., 10-Q filed on 8/4/2016
Quarterly Report
v3.5.0.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2016
Aug. 01, 2016
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2016  
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q2  
Trading Symbol AGII  
Entity Registrant Name Argo Group International Holdings, Ltd.  
Entity Central Index Key 0001091748  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Common Stock, Shares Outstanding   30,046,385
v3.5.0.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
 [1]
Assets    
Available-for-sale (cost: 2016 - $2,870.4; 2015 - $2,971.0) $ 2,892.6 $ 2,927.3
Equity securities, at fair value (cost: 2016 - $335.7; 2015 - $349.7) 454.5 463.9
Other investments (cost: 2016 - $582.4; 2015 - $499.6) 585.7 513.7
Short-term investments, at fair value (cost: 2016 - $225.2; 2015 - $211.2) 225.3 210.8
Total investments 4,158.1 4,115.7
Cash 120.6 121.7
Accrued investment income 20.7 21.6
Premiums receivable 511.2 404.5
Reinsurance recoverables 1,205.0 1,121.1
Goodwill 152.2 152.2
Intangible assets, net of accumulated amortization 70.5 73.3
Current income taxes receivable, net 2.9 11.6
Deferred acquisition costs, net 144.6 132.4
Ceded unearned premiums 312.2 250.8
Other assets 262.8 220.7
Total assets 6,960.8 6,625.6
Liabilities and Shareholders' Equity    
Reserves for losses and loss adjustment expenses 3,181.9 3,123.6
Unearned premiums 956.5 886.7
Accrued underwriting expenses 104.5 133.9
Ceded reinsurance payable, net 432.6 312.4
Funds held 96.1 77.6
Senior unsecured fixed rate notes 139.4 139.3
Other indebtedness 57.1 55.2
Junior subordinated debentures 172.7 172.7
Deferred tax liabilities, net 45.1 23.6
Other liabilities 34.6 32.5
Total liabilities 5,220.5 4,957.5
Commitments and contingencies (Note 13) 0.0 0.0
Shareholders' equity:    
Common shares - $1.00 par, 500,000,000 shares authorized; 39,942,416 and 37,104,294 shares issued at June 30, 2016 and December 31, 2015, respectively 39.9 37.1
Additional paid-in capital 1,117.1 964.9
Treasury shares (9,900,239 and 9,181,644 shares at June 30, 2016 and December 31, 2015, respectively) (371.1) (331.1)
Retained earnings 885.3 985.7
Accumulated other comprehensive income, net of taxes 69.1 11.5
Total shareholders' equity 1,740.3 1,668.1
Total liabilities and shareholders' equity $ 6,960.8 $ 6,625.6
[1] Derived from audited consolidated financial statements.
v3.5.0.2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
 [1]
Statement Of Financial Position [Abstract]    
Available-for-sale cost $ 2,870.4 $ 2,971.0
Equity securities cost 335.7 349.7
Other investments cost 582.4 499.6
Short-term investments, Cost $ 225.2 $ 211.2
Common shares, par value $ 1.00 $ 1.00
Common shares, shares authorized 500,000,000 500,000,000
Common shares, shares issued 39,942,416 37,104,294
Treasury shares, shares 9,900,239 9,181,644
[1] Derived from audited consolidated financial statements.
v3.5.0.2
Condensed Consolidated Statements of Income - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Premiums and other revenue:        
Earned premiums $ 344.9 $ 346.0 $ 689.8 $ 680.6
Net investment income 35.7 24.4 56.9 50.1
Fee and other income 5.8 4.1 12.6 8.7
Net realized investment and other (losses) gains (2.1) 2.7 (4.9) 13.8
Total revenue 384.3 377.2 754.4 753.2
Expenses:        
Losses and loss adjustment expenses 196.6 190.6 388.2 374.3
Underwriting, acquisition and insurance expenses 133.0 139.5 265.6 269.1
Interest expense 4.9 4.6 9.7 9.5
Fee and other expense 5.7 4.8 12.2 9.8
Foreign currency exchange loss (gain) 4.5 3.0 6.0 (6.6)
Total expenses 344.7 342.5 681.7 656.1
Income before income taxes 39.6 34.7 72.7 97.1
Provision for income taxes 8.7 6.8 14.1 10.4
Net income before equity in earnings of subsidiaries 30.9 27.9 58.6 86.7
Equity in undistributed earnings of subsidiaries 0.0 0.0 0.0 0.0
Net income $ 30.9 $ 27.9 $ 58.6 $ 86.7
Net income per common share:        
Basic $ 1.03 $ 0.91 $ 1.93 $ 2.81
Diluted 1.00 0.89 1.89 2.76
Dividend declared per common share $ 0.22 $ 0.18 $ 0.42 $ 0.36
Weighted average common shares:        
Basic 30,187,592 30,742,865 30,333,417 30,841,708
Diluted 30,810,156 31,316,804 30,971,189 31,429,906
Net realized investment and other (losses) gains before other- than-temporary impairment losses $ 2.8 $ 4.1 $ 1.7 $ 15.7
Other-than-temporary impairment losses recognized in earnings:        
Other-than-temporary impairment losses on fixed maturities (0.5) (0.5) (1.1) (0.9)
Other-than-temporary impairment losses on equity securities (4.4) (0.9) (5.5) (1.0)
Impairment losses recognized in earnings (4.9) (1.4) (6.6) (1.9)
Net realized investment and other (losses) gains $ (2.1) $ 2.7 $ (4.9) $ 13.8
v3.5.0.2
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Statement Of Income And Comprehensive Income [Abstract]        
Net income $ 30.9 $ 27.9 $ 58.6 $ 86.7
Other comprehensive income (loss):        
Foreign currency translation adjustments 2.3 0.5 3.8 (2.6)
Unrealized gains (losses) on securities:        
Gains (losses) arising during the year 39.1 (10.3) 77.9 (34.6)
Reclassification adjustment for gains included in net income (0.3) (9.5) (8.1) (7.0)
Other comprehensive income (loss) before tax 41.1 (19.3) 73.6 (44.2)
Unrealized gains (loss) on securities:        
Gains (losses) arising during the year 12.1 (7.5) 19.9 (10.3)
Reclassification adjustment for gains included in net income 0.2 (2.8) (3.9) (2.9)
Income tax provision (benefit) related to other comprehensive income (loss) 12.3 (10.3) 16.0 (13.2)
Other comprehensive income (loss), net of tax 28.8 (9.0) 57.6 (31.0)
Comprehensive income $ 59.7 $ 18.9 $ 116.2 $ 55.7
v3.5.0.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities:    
Net income $ 58.6 $ 86.7
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization and depreciation 17.8 19.6
Share-based payments expense 5.6 12.9
Excess tax benefit from share-based payment arrangements (0.1) (0.1)
Deferred income tax provision, net 6.1 1.6
Net realized investment and other (gains) losses 4.9 (13.8)
Undistributed earnings from alternative investment portfolio (10.9) (7.5)
Amortization of debt issuance costs 0.1 0.1
Loss on disposals of fixed assets, net 0.1 0.2
Change in:    
Accrued investment income 0.9 1.5
Receivables (185.3) (120.4)
Deferred acquisition costs (11.8) (15.0)
Ceded unearned premiums (60.3) (56.0)
Reserves for losses and loss adjustment expenses 51.0 41.1
Unearned premiums 66.5 82.7
Ceded reinsurance payable and funds held 138.5 87.4
Income taxes 9.1 8.7
Accrued underwriting expenses (23.6) (31.7)
Other, net (35.7) (3.4)
Cash provided by operating activities 31.5 94.6
Cash flows from investing activities:    
Sales of fixed maturity investments 532.0 564.1
Maturities and mandatory calls of fixed maturity investments 673.3 382.6
Sales of equity securities 93.0 33.6
Sales of other investments 5.5 46.2
Purchases of fixed maturity investments (1,119.0) (907.6)
Purchases of equity securities (59.6) (48.0)
Purchases of other investments (77.1) (61.7)
Change in foreign regulatory deposits and voluntary pools 2.7 6.8
Change in short-term investments (13.7) (47.5)
Settlements of foreign currency exchange forward contracts 6.8 (4.6)
Purchases of fixed assets (22.7) (14.4)
Other, net (0.9) 18.6
Cash provided (used by) investing activities 20.3 (31.9)
Cash flows from financing activities:    
Activity under stock incentive plans 0.2 (1.4)
Repurchase of Company's common shares (40.0) (24.9)
Excess tax expense from share-based payment arrangements 0.1 0.1
Payment of cash dividends to common shareholders (13.1) (11.2)
Cash used by financing activities (52.8) (37.4)
Effect of exchange rate changes on cash (0.1) 0.2
Change in cash (1.1) 25.5
Cash, beginning of period 121.7 [1] 81.0
Cash, end of period $ 120.6 $ 106.5
[1] Derived from audited consolidated financial statements.
v3.5.0.2
Basis of Presentation
 6 Months Ended
Jun. 30, 2016
Accounting Policies [Abstract]  
Basis of Presentation

1.

Basis of Presentation

The accompanying consolidated financial statements of Argo Group International Holdings, Ltd. (“Argo Group,” “we” or the “Company”) and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The preparation of interim 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. Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission on February 26, 2016.

The interim financial information as of, and for the three and six months ended, June 30, 2016 and 2015 is unaudited. However, in the opinion of management, the interim information includes all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results presented for the interim periods. The operating results for the interim periods are not necessarily indicative of the results to be expected for the full year. All significant intercompany amounts have been eliminated in consolidation.

During the first quarter of 2016, we evaluated our accounting for income from our alternative investment portfolio and determined that as we manage these investments to appreciate in value on a quarter to quarter basis, it is more appropriate to classify the change in value as net investment income as opposed to realized investment gains (losses). As a result, net investment income for the three and six months ended June 30, 2016 was increased $12.5 million and $10.9 million, respectively, and net realized investment and other gains were reduced by the same amounts for the respective periods. Net investment income for the three and six months ended June 30, 2015, include increases of $2.6 million and $7.5 million, respectively, related to the alternative investment portfolio, and net realized investment and other gains were reduced by the same amounts for the respective periods.

10% Stock Dividend

On May 3, 2016, our Board of Directors declared a 10% stock dividend, payable on June 15, 2016, to shareholders of record at the close of business on June 1, 2016. As a result of the stock dividend, 2,735,542 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.

 
v3.5.0.2
Recently Issued Accounting Pronouncements
 6 Months Ended
Jun. 30, 2016
Accounting Changes And Error Corrections [Abstract]  
Recently Issued Accounting Pronouncements

2.

Recently Issued Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Measurement of Credit Losses on Financial Instruments” (Topic 326). ASU 2016-13 requires organizations to estimate credit losses on certain types of financial instruments, including receivables and available-for-sale debt securities, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The guidance requires a modified retrospective transition method and early adoption is permitted. We are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements.

In March 2016, FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” (Topic 718). ASU 2016-09 simplifies the accounting for share-based payment award transactions including income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows, and accounting for forfeitures. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning December 15, 2018. We are currently evaluating the impact that the adoption of ASU 2016-09 will have on our financial results and disclosures.

In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842). ASU 2016-02 requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additionally, ASU 2016-02 modifies current guidance for lessors' accounting. ASU 2016-02 is effective for interim and annual reporting periods beginning on or after January 1, 2019, with early adoption permitted. We are currently evaluating the impact that the adoption of ASU 2016-02 will have on our financial results and disclosures.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (Subtopic 825-10). ASU 2016-01 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 ability to realize our 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 evaluating the impact that the adoption of ASU 2016-01 will have on our financial results and disclosures.

In May 2015, the FASB issued ASU 2015-09, “Disclosures about Short-Duration Contracts” (Topic 944). ASU 2015-09 requires 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 evaluating the impact that the adoption of ASU 2015-09 will have on our financial disclosures.

In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (Subtopic 205-40). ASU 2014-15 requires entities to disclose whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued. Management is also required to evaluate and disclose whether it plans to alleviate the doubt. The ASU will apply to both annual and interim reporting periods. The standard is effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016.  We do not anticipate that the adoption of ASU 2014-15 will have a material impact on our consolidated financial statements

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (Topic 606), which replaces most existing GAAP revenue recognition guidance and permits the use of either the retrospective or cumulative effect transition method. In August 2015, “Deferral of the Effective Date” (Topic 606), deferred the effective date of this guidance to interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted for fiscal years, and interim reporting periods within those years, beginning after December 15, 2016. Subsequently, in 2016, the FASB issued implementation guidance related to ASU 2014-09, including:

 

·

ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (Topic 606), which is intended to provide further clarification on the application of the principal versus agent implementation;

 

·

ASU 2016-10, “Identifying Performance Obligations and Licensing” (Topic 606), which is intended to clarify the guidance for identifying promised goods or services in a contract with a customer;

 

·

ASU 2016-11, “Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting” (Topic 605 & 815); and

 

·

ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients” (Topic 606), which amends certain aspects of ASU 2014-09 to address certain implementation issues.

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.

Accounting Standards Retrospectively Adopted in 2016

In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which amends the guidance in Accounting Standards Codification Topic 835-30 “Interest-Imputation of Interest.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. For public business entities, the guidance was effective for annual and interim periods beginning after December 15, 2015. We adopted this guidance effective January 1, 2016 and adjusted our prior period balances to reflect the adoption of this guidance.

As of December 31, 2015, we reported $4.5 million of unamortized debt issuance costs related to our Senior unsecured fixed rate notes. The effects of the retrospective application of this guidance on individual financial statement line items in our Consolidated Balance Sheets were as follows:

 

 

 

December 31, 2015

 

(in millions)

 

As Previously Reported

 

 

As Adjusted

 

 

Effect of Change

 

Other assets

 

$

225.2

 

 

$

220.7

 

 

$

(4.5

)

Senior unsecured fixed rate notes

 

 

143.8

 

 

 

139.3

 

 

 

(4.5

)

 

The effects of the retrospective application of this guidance on individual financial statement line items in our Consolidated Statements of Cash Flows were as follows:

 

 

 

For the six months ended June 30, 2015

 

(in millions)

 

As Previously Reported

 

 

As Adjusted

 

 

Effect of Change

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of debt issuance costs

 

$

—

 

 

$

(0.1

)

 

$

(0.1

)

 

There were no changes to the Consolidated Statements of Income for the periods presented as a result of adoption of the authoritative guidance.

 
v3.5.0.2
Investments
 6 Months Ended
Jun. 30, 2016
Investments Debt And Equity Securities [Abstract]  
Investments

3.

Investments

Composition of Invested Assets

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

 

June 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments

 

$

188.9

 

 

$

2.8

 

 

$

—

 

 

$

191.7

 

Non-U.S. Governments

 

 

81.2

 

 

 

0.9

 

 

 

0.1

 

 

 

82.0

 

Obligations of states and political subdivisions

 

 

390.2

 

 

 

24.5

 

 

 

0.2

 

 

 

414.5

 

Credit-Financial

 

 

496.7

 

 

 

10.8

 

 

 

0.5

 

 

 

507.0

 

Credit-Industrial

 

 

539.2

 

 

 

12.4

 

 

 

4.3

 

 

 

547.3

 

Credit-Utility

 

 

149.8

 

 

 

4.8

 

 

 

4.0

 

 

 

150.6

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency (1)

 

 

150.7

 

 

 

5.8

 

 

 

—

 

 

 

156.5

 

CMO/MBS-non agency

 

 

5.9

 

 

 

0.5

 

 

 

—

 

 

 

6.4

 

CMBS (2)

 

 

208.9

 

 

 

2.2

 

 

 

0.4

 

 

 

210.7

 

ABS (3)

 

 

116.0

 

 

 

0.7

 

 

 

0.3

 

 

 

116.4

 

CLO (4)

 

 

140.8

 

 

 

0.2

 

 

 

2.2

 

 

 

138.8

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

170.6

 

 

 

2.9

 

 

 

11.4

 

 

 

162.1

 

Credit

 

 

121.4

 

 

 

1.5

 

 

 

14.7

 

 

 

108.2

 

ABS/CMBS

 

 

15.5

 

 

 

—

 

 

 

2.7

 

 

 

12.8

 

CLO

 

 

94.6

 

 

 

1.0

 

 

 

8.0

 

 

 

87.6

 

Total fixed maturities

 

 

2,870.4

 

 

 

71.0

 

 

 

48.8

 

 

 

2,892.6

 

Equity securities

 

 

335.7

 

 

 

129.6

 

 

 

10.8

 

 

 

454.5

 

Other investments

 

 

582.4

 

 

 

9.1

 

 

 

5.8

 

 

 

585.7

 

Short-term investments

 

 

225.2

 

 

 

0.1

 

 

 

—

 

 

 

225.3

 

Total investments

 

$

4,013.7

 

 

$

209.8

 

 

$

65.4

 

 

$

4,158.1

 

 

(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, 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”).

 

Included in “Total investments” in our Consolidated Balance Sheets at June 30, 2016 and December 31, 2015 is $121.3 million and $95.3 million, respectively, of assets managed on behalf of the trade capital providers, who are third-party participants that provide underwriting capital to the operations of our Syndicate 1200 segment.

Contractual Maturity

The amortized cost and fair values of fixed maturity investments as of June 30, 2016, by contractual maturity, were as follows:

 

(in millions)

 

Amortized

Cost

 

 

Fair

Value

 

Due in one year or less

 

$

277.6

 

 

$

269.8

 

Due after one year through five years

 

 

1,278.8

 

 

 

1,287.2

 

Due after five years through ten years

 

 

426.5

 

 

 

440.7

 

Thereafter

 

 

155.1

 

 

 

165.7

 

Structured securities

 

 

732.4

 

 

 

729.2

 

Total

 

$

2,870.4

 

 

$

2,892.6

 

 

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 and unfunded investment commitments of the other invested assets portfolio as of June 30, 2016 and December 31, 2015 were as follows:

 

June 30, 2016

 

 

 

 

 

 

 

 

(in millions)

 

Carrying

Value

 

 

Unfunded

Commitments

 

Investment Type

 

 

 

 

 

 

 

 

Hedge funds

 

$

178.7

 

 

$

3.0

 

Private equity

 

 

163.4

 

 

 

106.5

 

Long only funds

 

 

242.8

 

 

 

—

 

Other investments

 

 

0.8

 

 

 

—

 

Total other invested assets

 

$

585.7

 

 

$

109.5

 

 

December 31, 2015

 

 

 

 

 

 

 

 

(in millions)

 

Carrying

Value

 

 

Unfunded

Commitments

 

Investment Type

 

 

 

 

 

 

 

 

Hedge funds

 

$

146.9

 

 

$

—

 

Private equity

 

 

144.1

 

 

 

90.2

 

Long only funds

 

 

211.0

 

 

 

—

 

Other investments

 

 

11.7

 

 

 

—

 

Total other invested assets

 

$

513.7

 

 

$

90.2

 

 

The following describes each investment type:

 

·

Hedge funds: Hedge funds include funds that primarily buy and sell stocks, including the short sales of stocks, 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 domestic and 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 our participation in pools, foreign exchange currency forward contracts to manage exposure on losses related to global catastrophic events, certain non-U.S. dollar denominated investments and to minimize negative impacts to our investment portfolio returns.

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:

 

June 30, 2016

 

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 (1)

 

$

6.4

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

6.4

 

 

$

—

 

Non-U.S. Governments (2)

 

 

11.8

 

 

 

0.1

 

 

 

1.6

 

 

 

—

 

 

 

13.4

 

 

 

0.1

 

Obligations of states and political

   subdivisions

 

 

0.2

 

 

 

—

 

 

 

9.9

 

 

 

0.2

 

 

 

10.1

 

 

 

0.2

 

Credit-Financial

 

 

42.8

 

 

 

0.2

 

 

 

29.0

 

 

 

0.3

 

 

 

71.8

 

 

 

0.5

 

Credit-Industrial

 

 

89.7

 

 

 

2.2

 

 

 

43.7

 

 

 

2.1

 

 

 

133.4

 

 

 

4.3

 

Credit-Utility

 

 

28.2

 

 

 

0.9

 

 

 

22.1

 

 

 

3.1

 

 

 

50.3

 

 

 

4.0

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency  (1) (2)

 

 

1.1

 

 

 

—

 

 

 

4.2

 

 

 

—

 

 

 

5.3

 

 

 

—

 

CMO/MBS-non agency (1)

 

 

0.1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.1

 

 

 

—

 

CMBS

 

 

45.2

 

 

 

0.2

 

 

 

10.2

 

 

 

0.2

 

 

 

55.4

 

 

 

0.4

 

ABS (1)

 

 

15.3

 

 

 

—

 

 

 

6.2

 

 

 

0.3

 

 

 

21.5

 

 

 

0.3

 

CLO

 

 

64.8

 

 

 

1.4

 

 

 

40.6

 

 

 

0.8

 

 

 

105.4

 

 

 

2.2

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

88.1

 

 

 

11.3

 

 

 

0.3

 

 

 

0.1

 

 

 

88.4

 

 

 

11.4

 

Credit

 

 

84.6

 

 

 

14.6

 

 

 

0.8

 

 

 

0.1

 

 

 

85.4

 

 

 

14.7

 

ABS/CMBS

 

 

10.6

 

 

 

2.1

 

 

 

2.2

 

 

 

0.6

 

 

 

12.8

 

 

 

2.7

 

CLO

 

 

73.9

 

 

 

7.1

 

 

 

10.4

 

 

 

0.9

 

 

 

84.3

 

 

 

8.0

 

Total fixed maturities

 

 

562.8

 

 

 

40.1

 

 

 

181.2

 

 

 

8.7

 

 

 

744.0

 

 

 

48.8

 

Equity securities

 

 

75.8

 

 

 

10.8

 

 

 

—

 

 

 

—

 

 

 

75.8

 

 

 

10.8

 

Other investments

 

 

(5.5

)

 

 

5.8

 

 

 

—

 

 

 

—

 

 

 

(5.5

)

 

 

5.8

 

Short-term investments (1)

 

 

0.4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.4

 

 

 

—

 

Total

 

$

633.5

 

 

$

56.7

 

 

$

181.2

 

 

$

8.7

 

 

$

814.7

 

 

$

65.4

 

 

(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.

 

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

 

 

(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 6,747 securities, of which 1,448 were in an unrealized loss position for less than one year and 335 were in an unrealized loss position for a period one year or greater as of June 30, 2016. 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-than-temporarily impaired or not, we also considered that we do not intend to sell the investments and it is unlikely that we will be required to sell the investments before recovery of their 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 June 30, 2016.

We recognized other-than-temporary losses on our fixed maturities portfolio of $0.5 million and $1.1 million for the three and six months ended June 30, 2016, respectively.  We recognized other-than-temporary losses on our fixed maturities of $0.5 million and $0.9 million for the three and six months ended June 30, 2015, respectively. We recognized other-than-temporary losses on our equity portfolio of $4.4 million and $5.5 million for the three and six months ended June 30, 2016, respectively.  We recognized other-than-temporary losses on our equity portfolio of $0.9 million and $1.0 million for the three and six months ended June 30, 2015, respectively.

Realized Gains and Losses

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

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Realized gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities

 

$

4.6

 

 

$

3.5

 

 

$

11.0

 

 

$

7.6

 

Equity securities

 

 

5.3

 

 

 

9.0

 

 

 

24.6

 

 

 

12.8

 

Other investments

 

 

16.8

 

 

 

4.8

 

 

 

27.0

 

 

 

18.9

 

Short-term investments

 

 

0.2

 

 

 

1.1

 

 

 

0.4

 

 

 

1.1

 

Other assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Gain on sale of real estate holdings

 

 

—

 

 

 

0.1

 

 

 

—

 

 

 

0.4

 

Gross realized investment gains

 

 

26.9

 

 

 

18.5

 

 

 

63.0

 

 

 

40.8

 

Realized losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities

 

 

(6.5

)

 

 

(5.3

)

 

 

(14.9

)

 

 

(9.0

)

Equity securities

 

 

(1.0

)

 

 

(0.4

)

 

 

(7.1

)

 

 

(1.1

)

Other investments

 

 

(16.6

)

 

 

(8.4

)

 

 

(39.2

)

 

 

(13.6

)

Short-term investments

 

 

—

 

 

 

(0.3

)

 

 

(0.1

)

 

 

(1.4

)

Other-than-temporary impairment losses on fixed

   maturities

 

 

(0.5

)

 

 

(0.5

)

 

 

(1.1

)

 

 

(0.9

)

Other-than-temporary impairment losses on equity

   securities

 

 

(4.4

)

 

 

(0.9

)

 

 

(5.5

)

 

 

(1.0

)

Gross realized investment and other losses

 

 

(29.0

)

 

 

(15.8

)

 

 

(67.9

)

 

 

(27.0

)

Net realized investment and other (losses) gains

 

$

(2.1

)

 

$

2.7

 

 

$

(4.9

)

 

$

13.8

 

 

The cost of securities sold is based on the specific identification method.

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 and Other

 

 

Tax

Effects

 

 

Total

 

Three Months Ended June 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized before impairments

 

$

(1.9

)

 

$

4.3

 

 

$

0.2

 

 

$

0.2

 

 

$

—

 

 

$

(1.7

)

 

$

1.1

 

Realized - impairments

 

 

(0.5

)

 

 

(4.4

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1.7

 

 

 

(3.2

)

Change in unrealized

 

 

25.9

 

 

 

12.9

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(12.3

)

 

 

26.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized before impairments

 

$

(1.8

)

 

$

8.6

 

 

$

(3.6

)

 

$

0.8

 

 

$

0.1

 

 

$

(1.8

)

 

$

2.3

 

Realized - impairments

 

 

(0.5

)

 

 

(0.9

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.5

 

 

 

(0.9

)

Change in unrealized

 

 

(6.0

)

 

 

(14.0

)

 

 

—

 

 

 

0.2

 

 

 

—

 

 

 

10.3

 

 

 

(9.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized before impairments

 

$

(3.9

)

 

$

17.5

 

 

$

(12.2

)

 

$

0.3

 

 

$

—

 

 

$

(3.5

)

 

$

(1.8

)

Realized - impairments

 

 

(1.1

)

 

 

(5.5

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2.3

 

 

 

(4.3

)

Change in unrealized

 

 

64.8

 

 

 

4.0

 

 

 

0.6

 

 

 

0.4

 

 

 

—

 

 

 

(16.0

)

 

 

53.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized before impairments

 

$

(1.4

)

 

$

11.7

 

 

$

5.3

 

 

$

(0.3

)

 

$

0.4

 

 

$

(6.3

)

 

$

9.4

 

Realized - impairments

 

 

(0.9

)

 

 

(1.0

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.2

 

 

 

(1.7

)

Change in unrealized

 

 

(18.3

)

 

 

(24.9

)

 

 

1.6

 

 

 

—

 

 

 

—

 

 

 

13.2

 

 

 

(28.4

)

 

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. These 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 (losses) gains” in our Consolidated Statements of Income.

The fair value of our foreign currency exchange forward contracts as of June 30, 2016 and December 31, 2015 was as follows:

 

 

 

June 30,

 

 

December 31,

 

(in millions)

 

2016

 

 

2015

 

Canadian dollar (CAD) currency exposure

 

$

(5.1

)

 

$

5.2

 

Euro (EUR) investment exposure

 

 

0.4

 

 

 

2.9

 

Total return strategy

 

 

0.6

 

 

 

(0.8

)

 

 

$

(4.1

)

 

$

7.3

 

 

 

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

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Realized gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global catastrophe (1)

 

$

—

 

 

$

0.2

 

 

$

—

 

 

$

0.5

 

Canadian dollar (CAD) currency exposure

 

 

4.6

 

 

 

3.6

 

 

 

7.4

 

 

 

11.1

 

Euro (EUR) investment exposure

 

 

2.3

 

 

 

—

 

 

 

2.3

 

 

 

6.3

 

Investment portfolio return strategy

 

 

—

 

 

 

0.4

 

 

 

0.3

 

 

 

0.4

 

Total return strategy

 

 

9.5

 

 

 

—

 

 

 

15.9

 

 

 

—

 

Gross realized investment gains

 

 

16.4

 

 

 

4.2

 

 

 

25.9

 

 

 

18.3

 

Realized losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global catastrophe (1)

 

 

—

 

 

 

(0.8

)

 

 

—

 

 

 

(2.0

)

Canadian dollar (CAD) currency exposure

 

 

(7.0

)

 

 

(2.8

)

 

 

(15.5

)

 

 

(4.8

)

Euro (EUR) investment exposure

 

 

—

 

 

 

(2.4

)

 

 

(3.6

)

 

 

(2.4

)

Investment portfolio return strategy

 

 

—

 

 

 

(1.0

)

 

 

(0.2

)

 

 

(1.0

)

Total return strategy

 

 

(9.4

)

 

 

—

 

 

 

(18.4

)

 

 

—

 

Gross realized investment losses

 

 

(16.4

)

 

 

(7.0

)

 

 

(37.7

)

 

 

(10.2

)

Net realized investment gains (losses) on foreign

   currency exchange forward contracts

 

$

—

 

 

$

(2.8

)

 

$

(11.8

)

 

$

8.1

 

(1)

Global Catastrophe program ended 2015

Regulatory Deposits, Pledged Securities and Letters of Credit

At June 30, 2016, the amortized cost and fair value of investments on deposit with U.S., Canadian and various other agencies for regulatory purposes were $164.9 million and $172.6 million, respectively. At December 31, 2015, the amortized cost and fair value of investments on deposit with U.S., Canadian and various other agencies for regulatory purposes were $187.1 million and $192.8 million, respectively.

At June 30, 2016, investments with an amortized cost of $36.6 million and fair value of $36.7 million were pledged as collateral in support of irrevocable letters of credit (“LOCs”) in the amount of $24.7 million issued under the terms of certain reinsurance agreements in respect of reported loss and loss expense reserves. 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 LOCs in the amount of $29.3 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 $204.8 million and $202.5 million at June 30, 2016 and December 31, 2015, 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 approach, income approach and/or cost 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 judgments 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 June 30, 2016. 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 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 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 interest in a mutual fund that is reported at fair value using Level 2 inputs. The valuation is based on the fund’s net asset value per share, at the end of each month. The underlying assets in the fund 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 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 the three months ended June 30, 2016.

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)

 

June 30, 2016

 

 

Level 1 (a)

 

 

Level 2 (b)

 

 

Level 3 (c)

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments

 

$

191.7

 

 

$

139.9

 

 

$

51.8

 

 

$

—

 

Non-U.S. Governments

 

 

82.0

 

 

 

—

 

 

 

82.0

 

 

 

—

 

Obligations of states and political subdivisions

 

 

414.5

 

 

 

—

 

 

 

414.5

 

 

 

—

 

Credit-Financial

 

 

507.0

 

 

 

—

 

 

 

507.0

 

 

 

—

 

Credit-Industrial

 

 

547.3

 

 

 

—

 

 

 

547.3

 

 

 

—

 

Credit-Utility

 

 

150.6

 

 

 

—

 

 

 

150.6

 

 

 

—

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency

 

 

156.5

 

 

 

—

 

 

 

156.5

 

 

 

—

 

CMO/MBS-non agency

 

 

6.4

 

 

 

—

 

 

 

6.4

 

 

 

—

 

CMBS

 

 

210.7

 

 

 

—

 

 

 

210.7

 

 

 

—

 

ABS

 

 

116.4

 

 

 

—

 

 

 

116.4

 

 

 

—

 

CLO

 

 

138.8

 

 

 

—

 

 

 

138.8

 

 

 

—

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

162.1

 

 

 

—

 

 

 

162.1

 

 

 

—

 

Credit

 

 

108.2

 

 

 

—

 

 

 

108.2

 

 

 

—

 

ABS/CMBS

 

 

12.8

 

 

 

—

 

 

 

12.8

 

 

 

—

 

CLO

 

 

87.6

 

 

 

—

 

 

 

87.6

 

 

 

—

 

Total fixed maturities

 

 

2,892.6

 

 

 

139.9

 

 

 

2,752.7

 

 

 

—

 

Equity securities

 

 

454.5

 

 

 

452.0

 

 

 

2.0

 

 

 

0.5

 

Other investments

 

 

82.7

 

 

 

—

 

 

 

82.7

 

 

 

—

 

Short-term investments

 

 

225.3

 

 

 

214.6

 

 

 

10.7

 

 

 

—

 

 

 

$

3,655.1

 

 

$

806.5

 

 

$

2,848.1

 

 

$

0.5

 

 

(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, 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

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, 2016

 

$

0.7

 

 

$

0.7

 

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, June 30, 2016

 

$

0.5

 

 

$

0.5

 

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 June 30, 2016

 

$

—

 

 

$

—

 

 

(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

 

$

—

 

 

$

—

 

 

At June 30, 2016 and December 31, 2015, 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.

 
v3.5.0.2
Reserves for Losses and Loss Adjustment Expenses
 6 Months Ended
Jun. 30, 2016
Insurance [Abstract]  
Reserves for Losses and Loss Adjustment Expenses

4.

Reserves for Losses and Loss Adjustment Expenses

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

 

 

For the Six Months Ended June 30,

 

(in millions)

2016

 

 

2015

 

Net reserves beginning of the year

$

2,133.3

 

 

$

2,137.1

 

Add:

 

 

 

 

 

 

 

Losses and LAE incurred during current calendar

   year, net of reinsurance:

 

 

 

 

 

 

 

Current accident year

 

404.1

 

 

 

383.0

 

Prior accident years

 

(15.9

)

 

 

(8.7

)

Losses and LAE incurred during calendar year, net

   of reinsurance

 

388.2

 

 

 

374.3

 

Deduct:

 

 

 

 

 

 

 

Losses and LAE payments made during current

   calendar year, net of reinsurance:

 

 

 

 

 

 

 

Current accident year

 

65.3

 

 

 

52.8

 

Prior accident years

 

300.1

 

 

 

313.3

 

Losses and LAE payments made during current

   calendar year, net of reinsurance:

 

365.4

 

 

 

366.1

 

Change in participation interest (1)

 

(36.3

)

 

 

(1.2

)

Foreign exchange adjustments

 

4.4

 

 

 

(14.5

)

Net reserves - end of period

 

2,124.2

 

 

 

2,129.6

 

Add:

 

 

 

 

 

 

 

Reinsurance recoverables on unpaid losses and LAE,

   end of period

 

1,057.7

 

 

 

948.6

 

Gross reserves - end of period

$

3,181.9

 

 

$

3,078.2

 

 

(1)

Amount represents decreases in reserves due to change in 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.

The impact from the (favorable) unfavorable development of prior accident years’ loss and LAE reserves on each reporting segment is presented below:

 

 

For the Six Months Ended June 30,

 

(in millions)

2016

 

 

2015

 

Excess and Surplus Lines

$

(6.3

)

 

$

(9.8

)

Commercial Specialty

 

(5.6

)

 

 

6.4

 

International Specialty

 

(5.8

)

 

 

(3.7

)

Syndicate 1200

 

(4.4

)

 

 

(2.5

)

Run-off Lines

 

6.2

 

 

 

0.9

 

Total favorable prior-year development

$

(15.9

)

 

$

(8.7

)

 

 

 

 

 

 

 

 

 

The following describes the primary factors behind each segment’s prior accident year reserve development for the six months ended June 30, 2016 and 2015:

Six months ended June 30, 2016:

 

·

Excess and Surplus Lines: Favorable development in the property lines, general and products liability lines, and commercial automobile

 

·

Commercial Specialty: Favorable development primarily in auto liability, surety, and property lines, partially offset by unfavorable development in other liability lines

 

·

International Specialty: Favorable development in the property reinsurance line and in the Brazil unit

 

·

Syndicate 1200: Favorable development in property lines, partially offset by unfavorable development in specialty lines

 

·

Run-off Lines: Unfavorable development primarily in asbestos and risk management liability,

Six months ended June 30, 2015:

 

·

Excess and Surplus Lines: Favorable development in the general and products liability lines and commercial automobile, partially offset by unfavorable development in the property lines

 

·

Commercial Specialty: Unfavorable development in general liability and workers compensation due to increases in claim severity, partially offset by favorable development in auto liability and short-tail lines

 

·

International Specialty: Favorable development in Argo Re and long-tail lines, partially offset by unfavorable development in the Brazil unit

 

·

Syndicate 1200: Favorable development in property and marine & energy, partially offset by unfavorable development in various liability classes

 

·

Run-off Lines: Unfavorable development in workers compensation lines and assumed asbestos and environmental liability, offset in part by favorable development in run-off reinsurance claims.

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 favorable or unfavorable loss development, which may be material, will not occur.

v3.5.0.2
Disclosures about Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2016
Fair Value Disclosures [Abstract]  
Disclosures about Fair Value of Financial Instruments

5.

Disclosures about Fair Value of Financial Instruments

Cash. The carrying amount approximates fair value.

Investment securities and short-term investments. See Note 3, “Investments,” for additional information.

Premiums receivable and reinsurance recoverables on paid losses. The carrying value of current receivables approximates fair value. At June 30, 2016 and December 31, 2015, the carrying values of premiums receivable over 90 days were $12.3 million and $10.0 million, respectively. Included in “Reinsurance recoverables” in our Consolidated Balance Sheets at June 30, 2016 and December 31, 2015, 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 June 30, 2016 and December 31, 2015, 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 June 30, 2016 and December 31, 2015, the carrying values over 90 days were $11.4 million and $7.1 million, respectively. Our methodology for establishing our allowances for doubtful accounts includes specifically identifying all potential uncollectible balances regardless of aging. At June 30, 2016 and December 31, 2015, the allowance for doubtful accounts for premiums receivable was $2.6 million and $3.5 million, respectively, and the allowance for doubtful accounts for reinsurance recoverables on paid losses was $1.8 million and $2.2 million, respectively. Premiums receivable over 90 days were secured by collateral in the amount of $0.2 million at both June 30, 2016 and December 31, 2015. Reinsurance recoverables on paid losses over 90 days were secured by collateral in the amount of $0.6 million and $0.7 at June 30, 2016 and December 31, 2015, respectively.

Debt. At June 30, 2016 and December 31, 2015, 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:

 

 

 

June 30, 2016

 

 

December 31, 2015

 

(in millions)

 

Carrying

Amount

 

 

Fair

Value

 

 

Carrying

Amount

 

 

Fair

Value

 

Junior subordinated debentures

 

$

172.7

 

 

$

165.3

 

 

$

172.7

 

 

$

166.5

 

Senior unsecured fixed rate notes

 

 

139.4

 

 

 

146.5

 

 

 

139.3

 

 

 

141.8

 

Other indebtedness:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Floating rate loan stock

 

 

56.5

 

 

 

54.1

 

 

 

54.6

 

 

 

52.7

 

Note payable

 

 

0.6

 

 

 

0.6

 

 

 

0.6

 

 

 

0.6

 

 

 

$

369.2

 

 

$

366.5

 

 

$

367.2

 

 

$

361.6

 

 
v3.5.0.2
Shareholders' Equity
 6 Months Ended
Jun. 30, 2016
Equity [Abstract]  
Shareholders' Equity

6.

Shareholders’ Equity

On August 2, 2016, our Board of Directors declared a quarterly cash dividend in the amount of $0.22 on each share of common stock outstanding. The dividend will be paid on August 29, 2016 to shareholders of record at the close of business on August 15, 2016.

On May 3, 2016, our Board of Directors declared a 10% stock dividend, payable on June 15, 2016, to shareholders of record at the close of business on June 1, 2016. As a result of the stock dividend, 2,735,542 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 3, 2016, our Board of Directors declared a quarterly cash dividend in the amount of $0.22 on each share of common stock outstanding. On June 17, 2016, we paid $6.9 million to our shareholders of record on June 1, 2016.

On May 5, 2015, our Board of directors declared a quarterly cash dividend in the amount of $0.18 on each share of common stock outstanding. On June 15, 2015, we paid $5.6 million to our shareholders of record on June 1, 2015.

On May 3, 2016, our Board of Directors authorized the repurchase of up to $150.0 million of our common shares (“2016 Repurchase Authorization”). The 2016 Repurchase Authorization supersedes all the previous Repurchase Authorizations. As of June 30, 2016, availability under the 2016 Repurchase Authorization for future repurchases of our common shares was $137.4 million.   

For the six months ended June 30, 2016, we repurchased a total of 718,595 common shares for $40.0 million. A summary of activity from January 1, 2016 through June 30, 2016 follows.

A summary of common shares repurchased for the six months ended June 30, 2016 is shown below:

 

Repurchase Type

 

Date

Trading Plan

Initiated

 

2016

Purchase

Period

 

Number of

Shares

Repurchased

 

 

Average Price

of Shares

Repurchased

 

 

Total Cost

(in millions)

 

 

Repurchase

Authorization

Year

10b5-1 Trading Plan

 

12/16/2015

 

01/04/2016-02/11/2016

 

 

266,538

 

 

$

55.59

 

 

$

14.8

 

 

2013

10b5-1 Trading Plan

 

03/16/2016

 

03/16/2016-05/02/2016

 

 

162,893

 

 

$

55.62

 

 

 

9.1

 

 

2013

10b5-1 Trading Plan

 

06/16/2016

 

06/24/2016-06/28/2016

 

 

14,774

 

 

$

49.78

 

 

 

0.7

 

 

2016

Open Market

 

N/A

 

01/01/2016-05/02/2016

 

 

64,464

 

 

$

54.14

 

 

 

3.5

 

 

2013

Open Market

 

N/A

 

05/03/2016-06/30/2016

 

 

209,926

 

 

$

56.70

 

 

 

11.9

 

 

2016

Total

 

 

 

 

 

 

718,595

 

 

$

55.67

 

 

$

40.0

 

 

 

 
v3.5.0.2
Accumulated Other Comprehensive Income (Loss)
 6 Months Ended
Jun. 30, 2016
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)

7.

Accumulated Other Comprehensive Income (Loss)

A summary of changes in accumulated other comprehensive income (loss), net of taxes (where applicable) by component for the six months ended June 30, 2016 and 2015 is presented below:

 

(in millions)

 

Foreign Currency Translation Adjustments

 

 

Unrealized

Holding Gains

on Securities

 

 

Defined Benefit Pension Plans

 

 

Total

 

Balance, January 1, 2016

 

$

(21.6

)

 

$

40.0

 

 

$

(6.9

)

 

$

11.5

 

Other comprehensive income before

   reclassifications

 

 

3.8

 

 

 

58.0

 

 

 

—

 

 

 

61.8

 

Amounts reclassified from accumulated other

   comprehensive (loss)

 

 

—

 

 

 

(4.2

)

 

 

—

 

 

 

(4.2

)

Net current-period other comprehensive

   income

 

 

3.8

 

 

 

53.8

 

 

 

—

 

 

 

57.6

 

Balance at June 30, 2016

 

$

(17.8

)

 

$

93.8

 

 

$

(6.9

)

 

$

69.1

 

 

(in millions)

 

Foreign Currency Translation Adjustments

 

 

Unrealized

Holding Gains

on Securities

 

 

Defined Benefit Pension Plans

 

 

Total

 

Balance, January 1, 2015

 

$

(15.6

)

 

$

130.7

 

 

$

(7.0

)

 

$

108.1

 

Other comprehensive (loss) income before

   reclassifications

 

 

(2.6

)

 

 

(24.3

)

 

 

—

 

 

 

(26.9

)

Amounts reclassified from accumulated other

   comprehensive (loss) income

 

 

—

 

 

 

(4.1

)

 

 

—

 

 

 

(4.1

)

Net current-period other comprehensive

   (loss) income

 

 

(2.6

)

 

 

(28.4

)

 

 

—

 

 

 

(31.0

)

Balance at June 30, 2015

 

$

(18.2

)

 

$

102.3

 

 

$

(7.0

)

 

$

77.1

 

 

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

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Unrealized gains and losses on securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized investment (gain)

 

$

(0.3

)

 

$

(9.5

)

 

$

(8.1

)

 

$

(7.0

)

Provision for income tax (benefit)

 

 

(0.2

)

 

 

2.8

 

 

 

3.9

 

 

 

2.9

 

Net of taxes

 

$

(0.5

)

 

$

(6.7

)

 

$

(4.2

)

 

$

(4.1

)

 

 
v3.5.0.2
Net Income Per Common Share
 6 Months Ended
Jun. 30, 2016
Earnings Per Share [Abstract]  
Net Income Per Common Share

8.

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 Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

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

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Net income

 

$

30.9

 

 

$

27.9

 

 

$

58.6

 

 

$

86.7

 

Weighted average common shares outstanding - basic

 

 

30,187,592

 

 

 

30,742,865

 

 

 

30,333,417

 

 

 

30,841,708

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity compensation awards

 

 

622,564

 

 

 

573,939

 

 

 

637,772

 

 

 

588,198

 

Weighted average common shares outstanding - diluted

 

 

30,810,156

 

 

 

31,316,804

 

 

 

30,971,189

 

 

 

31,429,906

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.03

 

 

$

0.91

 

 

$

1.93

 

 

$

2.81

 

Diluted

 

$

1.00

 

 

$

0.89

 

 

$

1.89

 

 

$

2.76

 

 

Excluded from the weighted average common shares outstanding calculation at June 30, 2016, and 2015 are 9,900,239 shares and 9,095,585 shares, respectively, which are held as treasury shares. The shares are excluded as of their repurchase date. For the three and six months ended June 30, 2016, there were no equity compensation awards with an anti-dilutive effect. For the three and six months ended June 30, 2015, equity compensation awards to purchase 484 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 during the second quarter 2015.

 
v3.5.0.2
Supplemental Cash Flow Information
 6 Months Ended
Jun. 30, 2016
Supplemental Cash Flow Elements [Abstract]  
Supplemental Cash Flow Information

9.

Supplemental Cash Flow Information

Income taxes paid. We paid income taxes of $1.3 million and $10.5 million during the six months ended June 30, 2016 and 2015, respectively.

Income taxes recovered. We recovered income taxes of $0.3 million and $11.5 million during the six months ended June 30, 2016 and 2015, respectively.

Interest paid was as follows:

 

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

Senior unsecured fixed rate notes

 

$

4.7

 

 

$

4.7

 

Junior subordinated debentures

 

 

3.8

 

 

 

3.5

 

Other indebtedness

 

 

1.2

 

 

 

1.2

 

Total interest paid

 

$

9.7

 

 

$

9.4

 

 
v3.5.0.2
Share-based Compensation
 6 Months Ended
Jun. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-based Compensation

10.

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 six months ended June 30, 2016 and 2015:

 

 

 

For the Six Months Ended June 30,

 

 

 

2016

 

 

2015

 

Risk-free rate of return

 

 

1.00%

 

 

 

1.70%

 

Expected dividend yields

 

 

1.70%

 

 

 

1.57%

 

Expected award life (years)

 

 

4.54

 

 

4.62

 

Expected volatility

 

 

19.70%

 

 

 

21.10%

 

 

All outstanding awards were adjusted to reflect the 10% stock dividend, resulting in a 10% increase to the number of awards outstanding and a 9.09% reduction in the exercise price.

Argo Group’s Long-Term Incentive Plans

In November 2007, our shareholders approved the 2007 Long-Term Incentive Plan (the “2007 Plan”), which provides 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, 1.46 million 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 unit 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.

A summary of restricted share activity as of June 30, 2016 and changes during the six months then ended is as follows:

 

 

 

Shares

 

 

Weighted-Average

Grant Date

Fair Value

 

Outstanding at January 1, 2016

 

 

514,742

 

 

$

40.51

 

Granted

 

 

251,302

 

 

$

55.33

 

Vested and issued

 

 

(70,534

)

 

$

35.90

 

Expired or forfeited

 

 

(10,016

)

 

$

45.90

 

Outstanding at June 30, 2016

 

 

685,494

 

 

$

46.34

 

 

The restricted shares vest over two to four years. Expense recognized under this plan for the restricted shares was $1.8 million and $3.5 million for the three and six months ended June 30, 2016, respectively, as compared to $1.5 million and $3.0 million for the three and six months ended June 30, 2015, respectively. Compensation expense for all share-based compensation awards is included in “Underwriting, acquisition and insurance expenses” in the accompanying Consolidated Statements of Income. As of June 30, 2016, there was $21.7 million of total unrecognized compensation cost related to restricted share compensation arrangements granted by Argo Group.

In January 2016, we modified certain unvested cash-settled SARs, converting the awards into stock-settled SARs.  We evaluated this modification under the terms of ASU 718 “Share Based Payments”, and determined that no additional expense resulted from the conversion.  The expense for the stock-settled SARs will be amortized over the remaining vesting period.

A summary of stock-settled SARs activity as of June 30, 2016 and changes during the six months then ended is as follows:

 

 

 

Shares

 

 

Weighted-Average

Exercise Price

 

Outstanding at January 1, 2016

 

 

1,438,146

 

 

$

32.49

 

Granted

 

 

542

 

 

$

40.38

 

Converted from cash-settled SARs

 

 

944,046

 

 

$

45.31

 

Exercised

 

 

(103,150

)

 

$

28.56

 

Expired or forfeited

 

 

(96,929

)

 

$

46.63

 

Outstanding at June 30, 2016

 

 

2,182,655

 

 

$

37.59

 

 

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. Expense recognized for the stock-settled SARs was $1.2 million and $2.6 for the three and six months ended June 30, 2016, respectively, as compared to $0.3 million and $1.0 million for the three and six months ended June 30, 2015, respectively. As of June 30, 2016, there was $10.9 million of total unrecognized compensation cost related to stock-settled SARs outstanding.

A summary of cash-settled SARs activity as of June 30, 2016 and changes during the six months then ended is as follows:

 

 

 

Shares

 

 

Weighted-Average

Exercise Price

 

Outstanding at January 1, 2016

 

 

2,220,560

 

 

$

39.06

 

Granted

 

 

540

 

 

$

40.38

 

Converted to stock-settled SARs(1)

 

 

(864,036

)

 

$

45.33

 

Exercised

 

 

(358,698

)

 

$

33.82

 

Expired or forfeited

 

 

(79,576

)

 

$

43.60

 

Outstanding at June 30, 2016

 

 

918,790

 

 

$

34.83

 

 

(1)

The converted shares were not adjusted for the 10% stock dividend because the conversion occurred prior to the stock          dividend record date.

 

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. We recouped $0.2 million and $0.5 million for the three and six months ended June 30, 2016, respectively, primarily related to the conversion of certain cash-settled SARs. Expense recognized for the cash-settled SARs was $8.5 million and $11.3 million for the three and six months ended June 30, 2015, respectively. As of June 30, 2016, there was $0.7 million of total unrecognized compensation cost related to cash-settled SARs outstanding.

 
v3.5.0.2
Underwriting, Acquisition and Insurance Expenses
 6 Months Ended
Jun. 30, 2016
Underwriting Acquisition And Insurance Expenses [Abstract]  
Underwriting, Acquisition and Insurance Expenses

11.

Underwriting, Acquisition and Insurance Expenses

Underwriting, acquisition and insurance expenses were as follows:

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Commissions

 

$

62.1

 

 

$

67.2

 

 

$

119.2

 

 

$

125.9

 

General expenses

 

 

71.1

 

 

 

79.7

 

 

 

141.7

 

 

 

152.6

 

Premium taxes, boards and bureaus

 

 

6.3

 

 

 

—

 

 

 

12.9

 

 

 

0.6

 

 

 

 

139.5

 

 

 

146.9

 

 

 

273.8

 

 

 

279.1

 

Net deferral of policy acquisition costs

 

 

(6.5

)

 

 

(7.4

)

 

 

(8.2

)

 

 

(10.0

)

Total underwriting, acquisition and insurance expenses

 

$

133.0

 

 

$

139.5

 

 

$

265.6

 

 

$

269.1

 

 

Included in general expenses for the three months ended June 30, 2016 and 2015 was $2.6 million and $7.7 million, respectively, and $5.6 million and $12.9 million for the six months ended June 30, 2016, and 2015, respectively, of expense for our total equity-related compensation. The increase in premium taxes, boards and bureaus for the three and six months ended June 30, 2016 as compared to the three and six months ended June 30, 2015 was primarily due to a decline in the accrual for premium taxes and other assessments due to a change in accounting estimate in the first quarter of 2015.
v3.5.0.2
Income Taxes
 6 Months Ended
Jun. 30, 2016
Income Tax Disclosure [Abstract]  
Income Taxes

12.

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 Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Current tax provision

 

$

6.5

 

 

$

9.0

 

 

$

8.0

 

 

$

8.8

 

Deferred tax provision (benefit) related to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Future tax deductions

 

 

2.0

 

 

 

(2.9

)

 

 

4.9

 

 

 

2.6

 

Valuation allowance change

 

 

0.2

 

 

 

0.7

 

 

 

1.2

 

 

 

(1.0

)

Income tax provision

 

$

8.7

 

 

$

6.8

 

 

$

14.1

 

 

$

10.4

 

 

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 three and six months ended June 30, 2016 and 2015, pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows:

 

 

 

For the Three Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

 

Pre-Tax

Income (Loss)

 

 

Effective

Tax

Rate

 

 

Pre-Tax

Income (Loss)

 

 

Effective

Tax

Rate

 

Bermuda

 

$

22.1

 

 

 

0.0

%

 

$

18.3

 

 

 

0.0

%

United States

 

 

26.5

 

 

 

30.9

%

 

 

20.2

 

 

 

27.0

%

United Kingdom

 

 

(9.8

)

 

 

-5.7

%

 

 

(2.9

)

 

 

-46.9

%

Belgium

 

 

—

 

(1)

 

16.3

%

 

 

0.1

 

 

 

16.5

%

Brazil

 

 

0.8

 

 

 

0.0

%

 

 

(1.2

)

 

 

0.0

%

United Arab Emirates

 

 

—

 

(1)

 

0.0

%

 

 

0.1

 

 

 

0.0

%

Ireland

 

 

(0.1

)

 

 

0.0

%

 

 

(0.1

)

 

 

0.0

%

Malta

 

 

0.1

 

 

 

0.0

%

 

 

0.2

 

 

 

0.0

%

Switzerland

 

 

—

 

(1)

 

22.8

%

 

 

—

 

(1)

 

-36.7

%

Pre-tax income

 

$

39.6

 

 

 

 

 

 

$

34.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

 

Pre-Tax

Income (Loss)

 

 

Effective

Tax

Rate

 

 

Pre-Tax

Income (Loss)

 

 

Effective

Tax

Rate

 

Bermuda

 

$

44.1

 

 

 

0.0

%

 

$

44.0

 

 

 

0.0

%

United States

 

 

49.8

 

 

 

27.5

%

 

 

48.7

 

 

 

23.0

%

United Kingdom

 

 

(22.1

)

 

 

-1.7

%

 

 

7.2

 

 

 

-12.0

%

Belgium

 

 

—

 

(1)

 

32.0

%

 

 

(0.1

)

 

 

-24.2

%

Brazil

 

 

0.7

 

 

 

0.0

%

 

 

(3.0

)

 

 

0.0

%

United Arab Emirates

 

 

—

 

(1)

 

0.0

%

 

 

0.1

 

 

 

0.0

%

Ireland

 

 

(0.1

)

 

 

0.0

%

 

 

(0.1

)

 

 

0.0

%

Malta

 

 

0.3

 

 

 

0.0

%

 

 

0.3

 

 

 

0.0

%

Switzerland

 

 

—

 

(1)

 

21.1

%

 

 

—

 

(1)

 

-18.6

%

Pre-tax income

 

$

72.7

 

 

 

 

 

 

$

97.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) 

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

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 Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Income tax provision at expected rate

 

$

7.6

 

 

$

6.2

 

 

$

13.4

 

 

$

17.4

 

Tax effect of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt interest

 

 

(0.9

)

 

 

(1.0

)

 

 

(1.8

)

 

 

(1.9

)

Dividends received deduction

 

 

(0.8

)

 

 

(0.6

)

 

 

(1.3

)

 

 

(1.2

)

Valuation allowance change

 

 

0.2

 

 

 

0.7

 

 

 

1.2

 

 

 

(1.0

)

Other permanent adjustments, net

 

 

—

 

 

 

—

 

 

 

0.2

 

 

 

0.2

 

Adjustment for annualized rate

 

 

0.9

 

 

 

0.3

 

 

 

(0.6

)

 

 

(0.2

)

United States state tax benefit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2.5

)

Other foreign adjustments

 

 

(0.6

)

 

 

0.4

 

 

 

(0.6

)

 

 

0.1

 

Foreign tax credit utilization

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1.2

)

Deferred tax rate reduction

 

 

—

 

 

 

—

 

 

 

(0.3

)

 

 

—

 

Foreign exchange adjustments

 

 

2.1

 

 

 

0.6

 

 

 

3.6

 

 

 

0.4

 

Foreign withholding taxes

 

 

0.2

 

 

 

0.2

 

 

 

0.3

 

 

 

0.3

 

Income tax provision

 

$

8.7

 

 

$

6.8

 

 

$

14.1

 

 

$

10.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit) - Foreign

 

$

0.6

 

 

$

1.4

 

 

$

0.4

 

 

$

(0.8

)

Income tax provision - United States, Federal

 

 

7.9

 

 

 

5.2

 

 

 

13.5

 

 

 

14.7

 

Income tax benefit  - United States, State

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3.8

)

Foreign withholding tax - United States

 

 

0.2

 

 

 

0.2

 

 

 

0.2

 

 

 

0.3

 

Income tax provision

 

$

8.7

 

 

$

6.8

 

 

$

14.1

 

 

$

10.4

 

 

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 sufficient taxable income in the future 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 June 30, 2016, we had a total net deferred tax liability of $21.1 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 $16.3 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 as Internal Revenue Code Section 382 limits the application of net operating loss and net capital 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 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 $24.0 million is required as of June 30, 2016 of which $14.4 million relates to the PXRE Corporation and ARIS loss carryforwards, $7.8 million relates to Brazil operations, and $1.8 million relates to Malta operations. For the six months ended June 30, 2016, the valuation allowance was reduced by $0.5 million pertaining to PXRE Corporation and ARIS loss carryforwards, and increased by $1.7 million pertaining to our Brazil operations. 

Of the PXRE Corporation net operating loss carryforwards, $14.8 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 June 30, 2016 and 2015. 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.

v3.5.0.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2016
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

13.

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 $109.5 million related to our limited partnership investments at June 30, 2016. 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.

v3.5.0.2
Segment Information
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Segment Information

14.

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.

Based on management’s evaluation of the Argo Pro platform’s shift in primary distribution channels and mix of admitted versus non-admitted business, we have reclassified Argo Pro’s results of operations and identifiable assets from Excess and Surplus Lines to the Commercial Specialty segment effective January 1, 2016, as the current makeup of the platform more closely aligns with our Commercial Specialty segment. The results of operations and identifiable assets for prior periods have been reclassified to conform to the current presentation.

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 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 Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

2016

 

 

2015

 

 

2016

 

 

2015

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess and Surplus Lines

$

121.3

 

 

$

118.4

 

 

$

241.1

 

 

$

230.3

 

Commercial Specialty

 

85.5

 

 

 

84.4

 

 

 

172.3

 

 

 

168.2

 

International Specialty

 

39.7

 

 

 

37.2

 

 

 

77.5

 

 

 

73.4

 

Syndicate 1200

 

98.2

 

 

 

105.6

 

 

 

198.7

 

 

 

208.6

 

Run-off Lines

 

0.2

 

 

 

0.4

 

 

 

0.2

 

 

 

0.1

 

Total earned premiums

 

344.9

 

 

 

346.0

 

 

 

689.8

 

 

 

680.6

 

Net investment income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess and Surplus Lines

 

13.7

 

 

 

9.4

 

 

 

22.4

 

 

 

17.4

 

Commercial Specialty

 

8.0

 

 

 

5.7

 

 

 

13.1

 

 

 

10.7

 

International Specialty

 

5.0

 

 

 

3.3

 

 

 

8.3

 

 

 

6.2

 

Syndicate 1200

 

4.1

 

 

 

2.6

 

 

 

6.9

 

 

 

4.8

 

Run-off Lines

 

3.4

 

 

 

2.4

 

 

 

5.6

 

 

 

4.4

 

Corporate and Other

 

1.5

 

 

 

1.0

 

 

 

0.6

 

 

 

6.6

 

Total net investment income

 

35.7

 

 

 

24.4

 

 

 

56.9

 

 

 

50.1

 

Fee and other income

 

5.8

 

 

 

4.1

 

 

 

12.6

 

 

 

8.7

 

Net realized investment and other (losses) gains

 

(2.1

)

 

 

2.7

 

 

 

(4.9

)

 

 

13.8

 

Total revenue

$

384.3

 

 

$

377.2

 

 

$

754.4

 

 

$

753.2

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

2016

 

 

2015

 

 

2016

 

 

2015

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess and Surplus Lines

$

25.0

 

 

$

20.7

 

 

$

46.2

 

 

$

42.1

 

Commercial Specialty

 

20.4

 

 

 

9.5

 

 

 

34.1

 

 

 

16.6

 

International Specialty

 

6.9

 

 

 

9.1

 

 

 

17.2

 

 

 

18.0

 

Syndicate 1200

 

8.4

 

 

 

10.3

 

 

 

15.8

 

 

 

21.5

 

Run-off Lines

 

(3.2

)

 

 

(0.8

)

 

 

(4.6

)

 

 

0.4

 

Total segment income before taxes

 

57.5

 

 

 

48.8

 

 

 

108.7

 

 

 

98.6

 

Corporate and Other

 

(15.8

)

 

 

(16.8

)

 

 

(31.1

)

 

 

(15.3

)

Net realized investment and other (losses) gains

 

(2.1

)

 

 

2.7

 

 

 

(4.9

)

 

 

13.8

 

Total income before income taxes

$

39.6

 

 

$

34.7

 

 

$

72.7

 

 

$

97.1

 

 

The table below presents earned premiums by geographic location for the three and six months ended June 30, 2016 and 2015. 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 Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

2016

 

 

2015

 

 

2016

 

 

2015

 

Bermuda

$

29.0

 

 

$

26.1

 

 

$

57.1

 

 

$

50.0

 

Brazil

 

10.0

 

 

 

11.9

 

 

 

19.2

 

 

 

24.4

 

Malta

 

0.5

 

 

 

0.4

 

 

 

1.0

 

 

 

0.9

 

United Kingdom

 

98.1

 

 

 

104.5

 

 

 

198.7

 

 

 

206.4

 

United States

 

207.3

 

 

 

203.1

 

 

 

413.8

 

 

 

398.9

 

Total earned premiums

$

344.9

 

 

$

346.0

 

 

$

689.8

 

 

$

680.6

 

 

The following table represents identifiable assets:

 

 

June 30,

 

 

December 31,

 

(in millions)

2016

 

 

2015

 

Excess and Surplus Lines

$

2,233.2

 

 

$

2,174.8

 

Commercial Specialty

 

1,532.5

 

 

 

1,511.7

 

International Specialty

 

979.7

 

 

 

877.2

 

Syndicate 1200

 

1,322.3

 

 

 

1,216.5

 

Run-off Lines

 

541.8

 

 

 

558.4

 

Corporate and Other

 

351.3

 

 

 

287.0

 

Total

$

6,960.8

 

 

$

6,625.6

 

 

Included in total assets at June 30, 2016 and December 31, 2015 are $527.7 million and $377.1 million, respectively, in assets associated with trade capital providers.

 
v3.5.0.2
Senior Unsecured Fixed Rate Notes
 6 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
Senior Unsecured Fixed Rate Notes

15.

Senior Unsecured Fixed Rate Notes

 

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.

In accordance with ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (Topic 835), we present the unamortized debt issuance costs in the balance sheet as a direct deduction from the carrying value of the debt liability. At June 30, 2016 and December 31, 2015, the Notes consisted of the following:

 

(in millions)

June 30,

2016

 

 

December 31,

2015

 

Senior unsecured fixed rate notes

 

 

 

 

 

 

 

Principal

$

143.8

 

 

$

143.8

 

Less: unamortized debt issuance costs

 

(4.4

)

 

 

(4.5

)

Senior unsecured fixed rate notes, less unamortized debt issuance costs

$

139.4

 

 

$

139.3

 

 

In accordance with Article 10 of SEC Regulation S-X, we have elected to present condensed consolidating financial information in lieu of separate financial statements for the Subsidiary Issuer. The following tables present condensed consolidating financial information at June 30, 2016 and December 31, 2015 and for the three and six months ended June 30, 2016 and 2015, 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.

The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer. 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

June 30, 2016

(in millions)

(Unaudited)

 

 

 

 

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

 

$

(2.1

)

 

$

2,770.9

 

 

$

1,389.3

 

 

$

—

 

 

$

4,158.1

 

Cash

 

 

—

 

 

 

82.9

 

 

 

37.7

 

 

 

—

 

 

 

120.6

 

Accrued investment income

 

 

—

 

 

 

15.5

 

 

 

5.2

 

 

 

—

 

 

 

20.7

 

Premiums receivable

 

 

—

 

 

 

211.0

 

 

 

300.2

 

 

 

—

 

 

 

511.2

 

Reinsurance recoverables

 

 

—

 

 

 

1,251.3

 

 

 

(46.3

)

 

 

—

 

 

 

1,205.0

 

Goodwill and other intangible assets, net

 

 

—

 

 

 

128.4

 

 

 

94.3

 

 

 

—

 

 

 

222.7

 

Current income taxes receivable, net

 

 

—

 

 

 

2.0

 

 

 

0.9

 

 

 

—

 

 

 

2.9

 

Deferred acquisition costs, net

 

 

—

 

 

 

60.4

 

 

 

84.2

 

 

 

—

 

 

 

144.6

 

Ceded unearned premiums

 

 

—

 

 

 

154.1

 

 

 

158.1

 

 

 

—

 

 

 

312.2

 

Other assets

 

 

10.7

 

 

 

162.8

 

 

 

89.3

 

 

 

—

 

 

 

262.8

 

Intercompany note receivable

 

 

—

 

 

 

50.2

 

 

 

(50.2

)

 

 

—

 

 

 

—

 

Investments in subsidiaries

 

 

1,804.0

 

 

 

—

 

 

 

—

 

 

 

(1,804.0

)

 

 

—

 

Total assets

 

$

1,812.6

 

 

$

4,889.5

 

 

$

2,062.7

 

 

$

(1,804.0

)

 

$

6,960.8

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves for losses and loss adjustment expenses

 

$

—

 

 

 

2,209.2

 

 

 

972.7

 

 

$

—

 

 

$

3,181.9

 

Unearned premiums

 

 

—

 

 

 

529.2

 

 

 

427.3

 

 

 

—

 

 

 

956.5

 

Funds held and ceded reinsurance payable, net

 

 

—

 

 

 

745.6

 

 

 

(216.9

)

 

 

—

 

 

 

528.7

 

Long-term debt

 

 

28.3

 

 

 

284.3

 

 

 

56.6

 

 

 

—

 

 

 

369.2

 

Deferred tax liabilities, net

 

 

—

 

 

 

37.4

 

 

 

7.7

 

 

 

—

 

 

 

45.1

 

Accrued underwriting expenses and other liabilities

 

 

12.3

 

 

 

79.5

 

 

 

47.3

 

 

 

—

 

 

 

139.1

 

Due to (from) affiliates

 

 

31.7

 

 

 

1.6

 

 

 

(1.6

)

 

 

(31.7

)

 

 

—

 

Total liabilities

 

 

72.3

 

 

 

3,886.8

 

 

 

1,293.1

 

 

 

(31.7

)

 

 

5,220.5

 

Total shareholders' equity

 

 

1,740.3

 

 

 

1,002.7

 

 

 

769.6

 

 

 

(1,772.3

)

 

 

1,740.3

 

Total liabilities and shareholders' equity

 

$

1,812.6

 

 

$

4,889.5

 

 

$

2,062.7

 

 

$

(1,804.0

)

 

$

6,960.8

 

 

(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, 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

 

 

 

151.7

 

 

 

60.8

 

 

 

—

 

 

 

220.7

 

Intercompany note receivable

 

 

—

 

 

 

49.8

 

 

 

(49.8

)

 

 

—

 

 

 

—

 

Investments in subsidiaries

 

 

1,715.9

 

 

 

—

 

 

 

—

 

 

 

(1,715.9

)

 

 

—

 

Total assets

 

$

1,730.3

 

 

$

4,764.8

 

 

$

1,846.4

 

 

$

(1,715.9

)

 

$

6,625.6

 

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

 

 

 

284.2

 

 

 

54.6

 

 

 

—

 

 

 

367.2

 

Deferred tax liabilities, net

 

 

—

 

 

 

11.9

 

 

 

11.7

 

 

 

—

 

 

 

23.6

 

Accrued underwriting expenses and other liabilities

 

 

16.3

 

 

 

95.4

 

 

 

54.7

 

 

 

—

 

 

 

166.4

 

Due to (from) affiliates

 

 

17.5

 

 

 

2.3

 

 

 

(2.3

)

 

 

(17.5

)

 

 

—

 

Total liabilities

 

 

62.2

 

 

 

3,792.0

 

 

 

1,120.8

 

 

 

(17.5

)

 

 

4,957.5

 

Total shareholders' equity

 

 

1,668.1

 

 

 

972.8

 

 

 

725.6

 

 

 

(1,698.4

)

 

 

1,668.1

 

Total liabilities and shareholders' equity

 

$

1,730.3

 

 

$

4,764.8

 

 

$

1,846.4

 

 

$

(1,715.9

)

 

$

6,625.6

 

 

(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 THREE MONTHS ENDED JUNE 30, 2016

(in millions)

(Unaudited)

 

 

 

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

 

$

—

 

 

$

120.2

 

 

$

224.7

 

 

$

—

 

 

$

344.9

 

Net investment income (expense)

 

 

(0.5

)

 

 

27.5

 

 

 

8.7

 

 

 

—

 

 

 

35.7

 

Fee and other income

 

 

—

 

 

 

4.2

 

 

 

1.6

 

 

 

—

 

 

 

5.8

 

Net realized investment and other (losses)

   gains

 

 

0.2

 

 

 

1.9

 

 

 

(4.2

)

 

 

—

 

 

 

(2.1

)

Total revenue

 

 

(0.3

)

 

 

153.8

 

 

 

230.8

 

 

 

—

 

 

 

384.3

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

—

 

 

 

69.1

 

 

 

127.5

 

 

 

—

 

 

 

196.6

 

Underwriting, acquisition and insurance

   expenses

 

 

1.1

 

 

 

49.0

 

 

 

82.9

 

 

 

—

 

 

 

133.0

 

Interest expense

 

 

0.4

 

 

 

3.9

 

 

 

0.6

 

 

 

—

 

 

 

4.9

 

Fee and other expense

 

 

—

 

 

 

5.0

 

 

 

0.7

 

 

 

—

 

 

 

5.7

 

Foreign currency exchange loss

 

 

—

 

 

 

(0.1

)

 

 

4.6

 

 

 

—

 

 

 

4.5

 

Total expenses

 

 

1.5

 

 

 

126.9

 

 

 

216.3

 

 

 

—

 

 

 

344.7

 

Income before income taxes

 

 

(1.8

)

 

 

26.9

 

 

 

14.5

 

 

 

—

 

 

 

39.6

 

Provision for income taxes

 

 

—

 

 

 

8.3

 

 

 

0.4

 

 

 

—

 

 

 

8.7

 

Net income before equity in earnings of

   subsidiaries

 

 

(1.8

)

 

 

18.6

 

 

 

14.1

 

 

 

—

 

 

 

30.9

 

Equity in undistributed earnings of

   subsidiaries

 

 

32.7

 

 

 

—

 

 

 

—

 

 

 

(32.7

)

 

 

—

 

Net income

 

$

30.9

 

 

$

18.6

 

 

$

14.1

 

 

$

(32.7

)

 

$

30.9

 

 

(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 THREE MONTHS ENDED JUNE 30, 2015

(in millions)

(Unaudited)

 

 

 

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

 

$

—

 

 

$

118.8

 

 

$

227.2

 

 

$

—

 

 

$

346.0

 

Net investment income (expense)

 

 

(0.3

)

 

 

16.6

 

 

 

8.1

 

 

 

—

 

 

 

24.4

 

Fee and other income

 

 

 

 

 

 

2.8

 

 

 

1.3

 

 

 

—

 

 

 

4.1

 

Net realized investment and other (losses)

   gains

 

 

2.0

 

 

 

4.8

 

 

 

(2.1

)

 

 

(2.0

)

 

 

2.7

 

Total revenue

 

 

1.7

 

 

 

143.0

 

 

 

234.5

 

 

 

(2.0

)

 

 

377.2

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

—

 

 

 

64.4

 

 

 

126.2

 

 

 

—

 

 

 

190.6

 

Underwriting, acquisition and insurance

   expenses

 

 

4.8

 

 

 

49.6

 

 

 

85.1

 

 

 

—

 

 

 

139.5

 

Interest expense

 

 

0.2

 

 

 

3.8

 

 

 

0.6

 

 

 

—

 

 

 

4.6

 

Fee and other expense

 

 

—

 

 

 

4.4

 

 

 

0.4

 

 

 

—

 

 

 

4.8

 

Foreign currency exchange loss (gains)

 

 

—

 

 

 

0.1

 

 

 

2.9

 

 

 

—

 

 

 

3.0

 

Total expenses

 

 

5.0

 

 

 

122.3

 

 

 

215.2

 

 

 

—

 

 

 

342.5

 

Income before income taxes

 

 

(3.3

)

 

 

20.7

 

 

 

19.3

 

 

 

(2.0

)

 

 

34.7

 

Provision for income taxes

 

 

—

 

 

 

5.4

 

 

 

1.4

 

 

 

—

 

 

 

6.8

 

Net income before equity in earnings of

   subsidiaries

 

 

(3.3

)

 

 

15.3

 

 

 

17.9

 

 

 

(2.0

)

 

 

27.9

 

Equity in undistributed earnings of

   subsidiaries

 

 

31.2

 

 

 

—

 

 

 

—

 

 

 

(31.2

)

 

 

—

 

Net income

 

$

27.9

 

 

$

15.3

 

 

$

17.9

 

 

$

(33.2

)

 

$

27.9

 

 

(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 SIX MONTHS ENDED JUNE 30, 2016

(in millions)

(Unaudited)

 

 

 

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

 

$

—

 

 

$

240.1

 

 

$

449.7

 

 

$

—

 

 

$

689.8

 

Net investment income (expense)

 

 

(1.1

)

 

 

40.1

 

 

 

17.9

 

 

 

—

 

 

 

56.9

 

Fee and other income

 

 

—

 

 

 

9.4

 

 

 

3.2

 

 

 

—

 

 

 

12.6

 

Net realized investment and other (losses)

   gains

 

 

0.2

 

 

 

13.1

 

 

 

(18.2

)

 

 

—

 

 

 

(4.9

)

Total revenue

 

 

(0.9

)

 

 

302.7

 

 

 

452.6

 

 

 

—

 

 

 

754.4

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

—

 

 

 

137.4

 

 

 

250.8

 

 

 

—

 

 

 

388.2

 

Underwriting, acquisition and insurance

   expenses

 

 

6.3

 

 

 

96.6

 

 

 

162.7

 

 

 

—

 

 

 

265.6

 

Interest expense

 

 

0.7

 

 

 

7.8

 

 

 

1.2

 

 

 

—

 

 

 

9.7

 

Fee and other expense

 

 

—

 

 

 

11.2

 

 

 

1.0

 

 

 

—

 

 

 

12.2

 

Foreign currency exchange loss (gains)

 

 

—

 

 

 

(0.1

)

 

 

6.1

 

 

 

—

 

 

 

6.0

 

Impairment of intangible assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total expenses

 

 

7.0

 

 

 

252.9

 

 

 

421.8

 

 

 

—

 

 

 

681.7

 

Income before income taxes

 

 

(7.9

)

 

 

49.8

 

 

 

30.8

 

 

 

—

 

 

 

72.7

 

Provision for income taxes

 

 

—

 

 

 

13.7

 

 

 

0.4

 

 

 

—

 

 

 

14.1

 

Net income before equity in earnings of

   subsidiaries

 

 

(7.9

)

 

 

36.1

 

 

 

30.4

 

 

 

—

 

 

 

58.6

 

Equity in undistributed earnings of

   subsidiaries

 

 

66.5

 

 

 

—

 

 

 

—

 

 

 

(66.5

)

 

 

—

 

Net income

 

$

58.6

 

 

$

36.1

 

 

$

30.4

 

 

$

(66.5

)

 

$

58.6

 

(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 SIX MONTHS ENDED JUNE 30, 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

 

$

—

 

 

$

253.9

 

 

$

426.7

 

 

$

—

 

 

$

680.6

 

Net investment income (expense)

 

 

(0.5

)

 

 

36.0

 

 

 

14.6

 

 

 

—

 

 

 

50.1

 

Fee and other income

 

 

 

 

 

 

6.4

 

 

 

2.3

 

 

 

—

 

 

 

8.7

 

Net realized investment and other (losses)

   gains

 

 

2.0

 

 

 

15.8

 

 

 

(2.0

)

 

 

(2.0

)

 

 

13.8

 

Total revenue

 

 

1.5

 

 

 

312.1

 

 

 

441.6

 

 

 

(2.0

)

 

 

753.2

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

—

 

 

 

144.6

 

 

 

229.7

 

 

 

—

 

 

 

374.3

 

Underwriting, acquisition and insurance

   expenses

 

 

9.5

 

 

 

101.5

 

 

 

158.1

 

 

 

—

 

 

 

269.1

 

Interest expense

 

 

0.7

 

 

 

7.6

 

 

 

1.2

 

 

 

—

 

 

 

9.5

 

Fee and other expense

 

 

—

 

 

 

8.8

 

 

 

1.0

 

 

 

—

 

 

 

9.8

 

Foreign currency exchange loss (gains)

 

 

—

 

 

 

0.9

 

 

 

(7.5

)

 

 

—

 

 

 

(6.6

)

Impairment of intangible assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total expenses

 

 

10.2

 

 

 

263.4

 

 

 

382.5

 

 

 

—

 

 

 

656.1

 

Income before income taxes

 

 

(8.7

)

 

 

48.7

 

 

 

59.1

 

 

 

(2.0

)

 

 

97.1

 

Provision for income taxes

 

 

—

 

 

 

11.2

 

 

 

(0.8

)

 

 

—

 

 

 

10.4

 

Net income before equity in earnings of

   subsidiaries

 

 

(8.7

)

 

 

37.5

 

 

 

59.9

 

 

 

(2.0

)

 

 

86.7

 

Equity in undistributed earnings of

   subsidiaries

 

 

95.4

 

 

 

—

 

 

 

—

 

 

 

(95.4

)

 

 

—

 

Net income

 

$

86.7

 

 

$

37.5

 

 

$

59.9

 

 

$

(97.4

)

 

$

86.7

 

(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 THE SIX MONTHS ENDED JUNE 30, 2016

(in millions)

(Unaudited)

 

 

 

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 (used by) operating activities

 

$

14.7

 

 

$

(9.3

)

 

$

26.1

 

 

$

—

 

 

$

31.5

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales of investments

 

 

—

 

 

 

490.0

 

 

 

140.5

 

 

 

—

 

 

 

630.5

 

Maturities and mandatory calls of fixed

   maturity investments

 

 

—

 

 

 

296.9

 

 

 

376.4

 

 

 

—

 

 

 

673.3

 

Purchases of investments

 

 

—

 

 

 

(720.1

)

 

 

(535.6

)

 

 

—

 

 

 

(1,255.7

)

Change in short-term investments and

   foreign regulatory deposits

 

 

(1.8

)

 

 

(12.3

)

 

 

3.1

 

 

 

—

 

 

 

(11.0

)

Settlements of foreign currency exchange

   forward contracts

 

 

—

 

 

 

—

 

 

 

6.8

 

 

 

—

 

 

 

6.8

 

Purchases of fixed assets and other, net

 

 

—

 

 

 

(11.2

)

 

 

(12.4

)

 

 

—

 

 

 

(23.6

)

Cash provided (used by) investing activities

 

 

(1.8

)

 

 

43.3

 

 

 

(21.2

)

 

 

—

 

 

 

20.3

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Activity under stock incentive plans

 

 

0.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.2

 

Repurchase of Company's common shares

 

 

—

 

 

 

(40.0

)

 

 

—

 

 

 

—

 

 

 

(40.0

)

Excess tax expense from share-based

   payment arrangements

 

 

—

 

 

 

0.1

 

 

 

—

 

 

 

—

 

 

 

0.1

 

Payment of cash dividend to common

   shareholders

 

 

(13.1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(13.1

)

Cash used by financing activities

 

 

(12.9

)

 

 

(39.9

)

 

 

—

 

 

 

—

 

 

 

(52.8

)

Effect of exchange rate changes on cash

 

 

—

 

 

 

—

 

 

 

(0.1

)

 

 

—

 

 

 

(0.1

)

Change in cash

 

 

—

 

 

 

(5.9

)

 

 

4.8

 

 

 

—

 

 

 

(1.1

)

Cash, beginning of the period

 

 

—

 

 

 

88.8

 

 

 

32.9

 

 

 

—

 

 

 

121.7

 

Cash, end of period

 

$

—

 

 

$

82.9

 

 

$

37.7

 

 

$

—

 

 

$

120.6

 

 

(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 THE SIX MONTHS ENDED JUNE 30, 2015

(in millions)

(Unaudited)

 

 

 

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

 

$

11.4

 

 

$

20.7

 

 

$

62.5

 

 

$

—

 

 

$

94.6

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales of investments

 

 

—

 

 

 

493.4

 

 

 

150.5

 

 

 

—

 

 

 

643.9

 

Maturities and mandatory calls of fixed

   maturity investments

 

 

—

 

 

 

311.7

 

 

 

70.9

 

 

 

—

 

 

 

382.6

 

Purchases of investments

 

 

—

 

 

 

(770.6

)

 

 

(246.7

)

 

 

—

 

 

 

(1,017.3

)

Change in short-term investments and

   foreign regulatory deposits

 

 

0.2

 

 

 

(6.9

)

 

 

(34.0

)

 

 

—

 

 

 

(40.7

)

Settlements of foreign currency exchange

   forward contracts

 

 

0.8

 

 

 

—

 

 

 

(5.4

)

 

 

—

 

 

 

(4.6

)

Purchases of fixed assets and other, net

 

 

0.2

 

 

 

(0.4

)

 

 

4.4

 

 

 

—

 

 

 

4.2

 

Cash provided (used by) investing activities

 

 

1.2

 

 

 

27.2

 

 

 

(60.3

)

 

 

—

 

 

 

(31.9

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Activity under stock incentive plans

 

 

(1.4

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1.4

)

Repurchase of Company's common shares

 

 

—

 

 

 

(24.9

)

 

 

—

 

 

 

—

 

 

 

(24.9

)

Excess tax expense from share-based

   payment arrangements

 

 

—

 

 

 

0.1

 

 

 

—

 

 

 

—

 

 

 

0.1

 

Payment of cash dividend to common

   shareholders

 

 

(11.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11.2

)

Cash used by financing activities

 

 

(12.6

)

 

 

(24.8

)

 

 

—

 

 

 

—

 

 

 

(37.4

)

Effect of exchange rate changes on cash

 

 

—

 

 

 

—

 

 

 

0.2

 

 

 

—

 

 

 

0.2

 

Change in cash

 

 

—

 

 

 

23.1

 

 

 

2.4

 

 

 

—

 

 

 

25.5

 

Cash, beginning of period

 

 

—

 

 

 

49.3

 

 

 

31.7

 

 

 

—

 

 

 

81.0

 

Cash, end of period

 

$

—

 

 

$

72.4

 

 

$

34.1

 

 

$

—

 

 

$

106.5

 

 

(1) 

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

(2) 

Includes all Argo Group parent company eliminations.
v3.5.0.2
Basis of Presentation (Policies)
 6 Months Ended
Jun. 30, 2016
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements of Argo Group International Holdings, Ltd. (“Argo Group,” “we” or the “Company”) and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The preparation of interim 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. Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission on February 26, 2016.

The interim financial information as of, and for the three and six months ended, June 30, 2016 and 2015 is unaudited. However, in the opinion of management, the interim information includes all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results presented for the interim periods. The operating results for the interim periods are not necessarily indicative of the results to be expected for the full year. All significant intercompany amounts have been eliminated in consolidation.

During the first quarter of 2016, we evaluated our accounting for income from our alternative investment portfolio and determined that as we manage these investments to appreciate in value on a quarter to quarter basis, it is more appropriate to classify the change in value as net investment income as opposed to realized investment gains (losses). As a result, net investment income for the three and six months ended June 30, 2016 was increased $12.5 million and $10.9 million, respectively, and net realized investment and other gains were reduced by the same amounts for the respective periods. Net investment income for the three and six months ended June 30, 2015, include increases of $2.6 million and $7.5 million, respectively, related to the alternative investment portfolio, and net realized investment and other gains were reduced by the same amounts for the respective periods.

10% Stock Dividend

On May 3, 2016, our Board of Directors declared a 10% stock dividend, payable on June 15, 2016, to shareholders of record at the close of business on June 1, 2016. As a result of the stock dividend, 2,735,542 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.
v3.5.0.2
Recently Issued Accounting Pronouncements (Tables)
 6 Months Ended
Jun. 30, 2016
Accounting Changes And Error Corrections [Abstract]  
Effects of Retrospective Application of Guidance on Individual Financial Statement Line Items

The effects of the retrospective application of this guidance on individual financial statement line items in our Consolidated Balance Sheets were as follows:

 

 

December 31, 2015

 

(in millions)

 

As Previously Reported

 

 

As Adjusted

 

 

Effect of Change

 

Other assets

 

$

225.2

 

 

$

220.7

 

 

$

(4.5

)

Senior unsecured fixed rate notes

 

 

143.8

 

 

 

139.3

 

 

 

(4.5

)

 

The effects of the retrospective application of this guidance on individual financial statement line items in our Consolidated Statements of Cash Flows were as follows:

 

 

 

For the six months ended June 30, 2015

 

(in millions)

 

As Previously Reported

 

 

As Adjusted

 

 

Effect of Change

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of debt issuance costs

 

$

—

 

 

$

(0.1

)

 

$

(0.1

)

 
v3.5.0.2
Investments (Tables)
 6 Months Ended
Jun. 30, 2016
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 were as follows:

 

June 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments

 

$

188.9

 

 

$

2.8

 

 

$

—

 

 

$

191.7

 

Non-U.S. Governments

 

 

81.2

 

 

 

0.9

 

 

 

0.1

 

 

 

82.0

 

Obligations of states and political subdivisions

 

 

390.2

 

 

 

24.5

 

 

 

0.2

 

 

 

414.5

 

Credit-Financial

 

 

496.7

 

 

 

10.8

 

 

 

0.5

 

 

 

507.0

 

Credit-Industrial

 

 

539.2

 

 

 

12.4

 

 

 

4.3

 

 

 

547.3

 

Credit-Utility

 

 

149.8

 

 

 

4.8

 

 

 

4.0

 

 

 

150.6

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency (1)

 

 

150.7

 

 

 

5.8

 

 

 

—

 

 

 

156.5

 

CMO/MBS-non agency

 

 

5.9

 

 

 

0.5

 

 

 

—

 

 

 

6.4

 

CMBS (2)

 

 

208.9

 

 

 

2.2

 

 

 

0.4

 

 

 

210.7

 

ABS (3)

 

 

116.0

 

 

 

0.7

 

 

 

0.3

 

 

 

116.4

 

CLO (4)

 

 

140.8

 

 

 

0.2

 

 

 

2.2

 

 

 

138.8

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

170.6

 

 

 

2.9

 

 

 

11.4

 

 

 

162.1

 

Credit

 

 

121.4

 

 

 

1.5

 

 

 

14.7

 

 

 

108.2

 

ABS/CMBS

 

 

15.5

 

 

 

—

 

 

 

2.7

 

 

 

12.8

 

CLO

 

 

94.6

 

 

 

1.0

 

 

 

8.0

 

 

 

87.6

 

Total fixed maturities

 

 

2,870.4

 

 

 

71.0

 

 

 

48.8

 

 

 

2,892.6

 

Equity securities

 

 

335.7

 

 

 

129.6

 

 

 

10.8

 

 

 

454.5

 

Other investments

 

 

582.4

 

 

 

9.1

 

 

 

5.8

 

 

 

585.7

 

Short-term investments

 

 

225.2

 

 

 

0.1

 

 

 

—

 

 

 

225.3

 

Total investments

 

$

4,013.7

 

 

$

209.8

 

 

$

65.4

 

 

$

4,158.1

 

 

(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, 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”).
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 June 30, 2016, by contractual maturity, were as follows:

 

(in millions)

 

Amortized

Cost

 

 

Fair

Value

 

Due in one year or less

 

$

277.6

 

 

$

269.8

 

Due after one year through five years

 

 

1,278.8

 

 

 

1,287.2

 

Due after five years through ten years

 

 

426.5

 

 

 

440.7

 

Thereafter

 

 

155.1

 

 

 

165.7

 

Structured securities

 

 

732.4

 

 

 

729.2

 

Total

 

$

2,870.4

 

 

$

2,892.6

 

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

Details regarding the carrying value and unfunded investment commitments of the other invested assets portfolio as of June 30, 2016 and December 31, 2015 were as follows:

 

June 30, 2016

 

 

 

 

 

 

 

 

(in millions)

 

Carrying

Value

 

 

Unfunded

Commitments

 

Investment Type

 

 

 

 

 

 

 

 

Hedge funds

 

$

178.7

 

 

$

3.0

 

Private equity

 

 

163.4

 

 

 

106.5

 

Long only funds

 

 

242.8

 

 

 

—

 

Other investments

 

 

0.8

 

 

 

—

 

Total other invested assets

 

$

585.7

 

 

$

109.5

 

 

December 31, 2015

 

 

 

 

 

 

 

 

(in millions)

 

Carrying

Value

 

 

Unfunded

Commitments

 

Investment Type

 

 

 

 

 

 

 

 

Hedge funds

 

$

146.9

 

 

$

—

 

Private equity

 

 

144.1

 

 

 

90.2

 

Long only funds

 

 

211.0

 

 

 

—

 

Other investments

 

 

11.7

 

 

 

—

 

Total other invested assets

 

$

513.7

 

 

$

90.2

 

 
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:

 

June 30, 2016

 

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 (1)

 

$

6.4

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

6.4

 

 

$

—

 

Non-U.S. Governments (2)

 

 

11.8

 

 

 

0.1

 

 

 

1.6

 

 

 

—

 

 

 

13.4

 

 

 

0.1

 

Obligations of states and political

   subdivisions

 

 

0.2

 

 

 

—

 

 

 

9.9

 

 

 

0.2

 

 

 

10.1

 

 

 

0.2

 

Credit-Financial

 

 

42.8

 

 

 

0.2

 

 

 

29.0

 

 

 

0.3

 

 

 

71.8

 

 

 

0.5

 

Credit-Industrial

 

 

89.7

 

 

 

2.2

 

 

 

43.7

 

 

 

2.1

 

 

 

133.4

 

 

 

4.3

 

Credit-Utility

 

 

28.2

 

 

 

0.9

 

 

 

22.1

 

 

 

3.1

 

 

 

50.3

 

 

 

4.0

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency  (1) (2)

 

 

1.1

 

 

 

—

 

 

 

4.2

 

 

 

—

 

 

 

5.3

 

 

 

—

 

CMO/MBS-non agency (1)

 

 

0.1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.1

 

 

 

—

 

CMBS

 

 

45.2

 

 

 

0.2

 

 

 

10.2

 

 

 

0.2

 

 

 

55.4

 

 

 

0.4

 

ABS (1)

 

 

15.3

 

 

 

—

 

 

 

6.2

 

 

 

0.3

 

 

 

21.5

 

 

 

0.3

 

CLO

 

 

64.8

 

 

 

1.4

 

 

 

40.6

 

 

 

0.8

 

 

 

105.4

 

 

 

2.2

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

88.1

 

 

 

11.3

 

 

 

0.3

 

 

 

0.1

 

 

 

88.4

 

 

 

11.4

 

Credit

 

 

84.6

 

 

 

14.6

 

 

 

0.8

 

 

 

0.1

 

 

 

85.4

 

 

 

14.7

 

ABS/CMBS

 

 

10.6

 

 

 

2.1

 

 

 

2.2

 

 

 

0.6

 

 

 

12.8

 

 

 

2.7

 

CLO

 

 

73.9

 

 

 

7.1

 

 

 

10.4

 

 

 

0.9

 

 

 

84.3

 

 

 

8.0

 

Total fixed maturities

 

 

562.8

 

 

 

40.1

 

 

 

181.2

 

 

 

8.7

 

 

 

744.0

 

 

 

48.8

 

Equity securities

 

 

75.8

 

 

 

10.8

 

 

 

—

 

 

 

—

 

 

 

75.8

 

 

 

10.8

 

Other investments

 

 

(5.5

)

 

 

5.8

 

 

 

—

 

 

 

—

 

 

 

(5.5

)

 

 

5.8

 

Short-term investments (1)

 

 

0.4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.4

 

 

 

—

 

Total

 

$

633.5

 

 

$

56.7

 

 

$

181.2

 

 

$

8.7

 

 

$

814.7

 

 

$

65.4

 

 

(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.

 

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

 

 

(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 Company's Gross Realized Investment Gains (Losses)

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

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Realized gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities

 

$

4.6

 

 

$

3.5

 

 

$

11.0

 

 

$

7.6

 

Equity securities

 

 

5.3

 

 

 

9.0

 

 

 

24.6

 

 

 

12.8

 

Other investments

 

 

16.8

 

 

 

4.8

 

 

 

27.0

 

 

 

18.9

 

Short-term investments

 

 

0.2

 

 

 

1.1

 

 

 

0.4

 

 

 

1.1

 

Other assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Gain on sale of real estate holdings

 

 

—

 

 

 

0.1

 

 

 

—

 

 

 

0.4

 

Gross realized investment gains

 

 

26.9

 

 

 

18.5

 

 

 

63.0

 

 

 

40.8

 

Realized losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities

 

 

(6.5

)

 

 

(5.3

)

 

 

(14.9

)

 

 

(9.0

)

Equity securities

 

 

(1.0

)

 

 

(0.4

)

 

 

(7.1

)

 

 

(1.1

)

Other investments

 

 

(16.6

)

 

 

(8.4

)

 

 

(39.2

)

 

 

(13.6

)

Short-term investments

 

 

—

 

 

 

(0.3

)

 

 

(0.1

)

 

 

(1.4

)

Other-than-temporary impairment losses on fixed

   maturities

 

 

(0.5

)

 

 

(0.5

)

 

 

(1.1

)

 

 

(0.9

)

Other-than-temporary impairment losses on equity

   securities

 

 

(4.4

)

 

 

(0.9

)

 

 

(5.5

)

 

 

(1.0

)

Gross realized investment and other losses

 

 

(29.0

)

 

 

(15.8

)

 

 

(67.9

)

 

 

(27.0

)

Net realized investment and other (losses) gains

 

$

(2.1

)

 

$

2.7

 

 

$

(4.9

)

 

$

13.8

 

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

The cost of securities sold is based on the specific identification method.

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 and Other

 

 

Tax

Effects

 

 

Total

 

Three Months Ended June 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized before impairments

 

$

(1.9

)

 

$

4.3

 

 

$

0.2

 

 

$

0.2

 

 

$

—

 

 

$

(1.7

)

 

$

1.1

 

Realized - impairments

 

 

(0.5

)

 

 

(4.4

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1.7

 

 

 

(3.2

)

Change in unrealized

 

 

25.9

 

 

 

12.9

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(12.3

)

 

 

26.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized before impairments

 

$

(1.8

)

 

$

8.6

 

 

$

(3.6

)

 

$

0.8

 

 

$

0.1

 

 

$

(1.8

)

 

$

2.3

 

Realized - impairments

 

 

(0.5

)

 

 

(0.9

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.5

 

 

 

(0.9

)

Change in unrealized

 

 

(6.0

)

 

 

(14.0

)

 

 

—

 

 

 

0.2

 

 

 

—

 

 

 

10.3

 

 

 

(9.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized before impairments

 

$

(3.9

)

 

$

17.5

 

 

$

(12.2

)

 

$

0.3

 

 

$

—

 

 

$

(3.5

)

 

$

(1.8

)

Realized - impairments

 

 

(1.1

)

 

 

(5.5

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2.3

 

 

 

(4.3

)

Change in unrealized

 

 

64.8

 

 

 

4.0

 

 

 

0.6

 

 

 

0.4

 

 

 

—

 

 

 

(16.0

)

 

 

53.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized before impairments

 

$

(1.4

)

 

$

11.7

 

 

$

5.3

 

 

$

(0.3

)

 

$

0.4

 

 

$

(6.3

)

 

$

9.4

 

Realized - impairments

 

 

(0.9

)

 

 

(1.0

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.2

 

 

 

(1.7

)

Change in unrealized

 

 

(18.3

)

 

 

(24.9

)

 

 

1.6

 

 

 

—

 

 

 

—

 

 

 

13.2

 

 

 

(28.4

)

 
Schedule of Fair Value of Foreign Currency Exchange Forward Contracts

The fair value of our foreign currency exchange forward contracts as of June 30, 2016 and December 31, 2015 was as follows:

 

 

 

June 30,

 

 

December 31,

 

(in millions)

 

2016

 

 

2015

 

Canadian dollar (CAD) currency exposure

 

$

(5.1

)

 

$

5.2

 

Euro (EUR) investment exposure

 

 

0.4

 

 

 

2.9

 

Total return strategy

 

 

0.6

 

 

 

(0.8

)

 

 

$

(4.1

)

 

$

7.3

 

 

 
Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts

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

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Realized gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global catastrophe (1)

 

$

—

 

 

$

0.2

 

 

$

—

 

 

$

0.5

 

Canadian dollar (CAD) currency exposure

 

 

4.6

 

 

 

3.6

 

 

 

7.4

 

 

 

11.1

 

Euro (EUR) investment exposure

 

 

2.3

 

 

 

—

 

 

 

2.3

 

 

 

6.3

 

Investment portfolio return strategy

 

 

—

 

 

 

0.4

 

 

 

0.3

 

 

 

0.4

 

Total return strategy

 

 

9.5

 

 

 

—

 

 

 

15.9

 

 

 

—

 

Gross realized investment gains

 

 

16.4

 

 

 

4.2

 

 

 

25.9

 

 

 

18.3

 

Realized losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global catastrophe (1)

 

 

—

 

 

 

(0.8

)

 

 

—

 

 

 

(2.0

)

Canadian dollar (CAD) currency exposure

 

 

(7.0

)

 

 

(2.8

)

 

 

(15.5

)

 

 

(4.8

)

Euro (EUR) investment exposure

 

 

—

 

 

 

(2.4

)

 

 

(3.6

)

 

 

(2.4

)

Investment portfolio return strategy

 

 

—

 

 

 

(1.0

)

 

 

(0.2

)

 

 

(1.0

)

Total return strategy

 

 

(9.4

)

 

 

—

 

 

 

(18.4

)

 

 

—

 

Gross realized investment losses

 

 

(16.4

)

 

 

(7.0

)

 

 

(37.7

)

 

 

(10.2

)

Net realized investment gains (losses) on foreign

   currency exchange forward contracts

 

$

—

 

 

$

(2.8

)

 

$

(11.8

)

 

$

8.1

 

(1)

Global Catastrophe program ended 2015
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)

 

June 30, 2016

 

 

Level 1 (a)

 

 

Level 2 (b)

 

 

Level 3 (c)

 

Fixed maturities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Governments

 

$

191.7

 

 

$

139.9

 

 

$

51.8

 

 

$

—

 

Non-U.S. Governments

 

 

82.0

 

 

 

—

 

 

 

82.0

 

 

 

—

 

Obligations of states and political subdivisions

 

 

414.5

 

 

 

—

 

 

 

414.5

 

 

 

—

 

Credit-Financial

 

 

507.0

 

 

 

—

 

 

 

507.0

 

 

 

—

 

Credit-Industrial

 

 

547.3

 

 

 

—

 

 

 

547.3

 

 

 

—

 

Credit-Utility

 

 

150.6

 

 

 

—

 

 

 

150.6

 

 

 

—

 

Structured securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMO/MBS-agency

 

 

156.5

 

 

 

—

 

 

 

156.5

 

 

 

—

 

CMO/MBS-non agency

 

 

6.4

 

 

 

—

 

 

 

6.4

 

 

 

—

 

CMBS

 

 

210.7

 

 

 

—

 

 

 

210.7

 

 

 

—

 

ABS

 

 

116.4

 

 

 

—

 

 

 

116.4

 

 

 

—

 

CLO

 

 

138.8

 

 

 

—

 

 

 

138.8

 

 

 

—

 

Foreign denominated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governments

 

 

162.1

 

 

 

—

 

 

 

162.1

 

 

 

—

 

Credit

 

 

108.2

 

 

 

—

 

 

 

108.2

 

 

 

—

 

ABS/CMBS

 

 

12.8

 

 

 

—

 

 

 

12.8

 

 

 

—

 

CLO

 

 

87.6

 

 

 

—

 

 

 

87.6

 

 

 

—

 

Total fixed maturities

 

 

2,892.6

 

 

 

139.9

 

 

 

2,752.7

 

 

 

—

 

Equity securities

 

 

454.5

 

 

 

452.0

 

 

 

2.0

 

 

 

0.5

 

Other investments

 

 

82.7

 

 

 

—

 

 

 

82.7

 

 

 

—

 

Short-term investments

 

 

225.3

 

 

 

214.6

 

 

 

10.7

 

 

 

—

 

 

 

$

3,655.1

 

 

$

806.5

 

 

$

2,848.1

 

 

$

0.5

 

 

(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, 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

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, 2016

 

$

0.7

 

 

$

0.7

 

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, June 30, 2016

 

$

0.5

 

 

$

0.5

 

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 June 30, 2016

 

$

—

 

 

$

—

 

 

(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

 

$

—

 

 

$

—

 

 
v3.5.0.2
Reserves for Losses and Loss Adjustment Expenses (Tables)
 6 Months Ended
Jun. 30, 2016
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 Six Months Ended June 30,

 

(in millions)

2016

 

 

2015

 

Net reserves beginning of the year

$

2,133.3

 

 

$

2,137.1

 

Add:

 

 

 

 

 

 

 

Losses and LAE incurred during current calendar

   year, net of reinsurance:

 

 

 

 

 

 

 

Current accident year

 

404.1

 

 

 

383.0

 

Prior accident years

 

(15.9

)

 

 

(8.7

)

Losses and LAE incurred during calendar year, net

   of reinsurance

 

388.2

 

 

 

374.3

 

Deduct:

 

 

 

 

 

 

 

Losses and LAE payments made during current

   calendar year, net of reinsurance:

 

 

 

 

 

 

 

Current accident year

 

65.3

 

 

 

52.8

 

Prior accident years

 

300.1

 

 

 

313.3

 

Losses and LAE payments made during current

   calendar year, net of reinsurance:

 

365.4

 

 

 

366.1

 

Change in participation interest (1)

 

(36.3

)

 

 

(1.2

)

Foreign exchange adjustments

 

4.4

 

 

 

(14.5

)

Net reserves - end of period

 

2,124.2

 

 

 

2,129.6

 

Add:

 

 

 

 

 

 

 

Reinsurance recoverables on unpaid losses and LAE,

   end of period

 

1,057.7

 

 

 

948.6

 

Gross reserves - end of period

$

3,181.9

 

 

$

3,078.2

 

 

(1)

Amount represents decreases in reserves due to change in syndicate participation

Impact from (Favorable) Unfavorable Development of Prior Accident Years’ Loss and LAE Reserves on Each Reporting Segment

The impact from the (favorable) unfavorable development of prior accident years’ loss and LAE reserves on each reporting segment is presented below:

 

 

For the Six Months Ended June 30,

 

(in millions)

2016

 

 

2015

 

Excess and Surplus Lines

$

(6.3

)

 

$

(9.8

)

Commercial Specialty

 

(5.6

)

 

 

6.4

 

International Specialty

 

(5.8

)

 

 

(3.7

)

Syndicate 1200

 

(4.4

)

 

 

(2.5

)

Run-off Lines

 

6.2

 

 

 

0.9

 

Total favorable prior-year development

$

(15.9

)

 

$

(8.7

)

 

 

 

 

 

 

 

 

 
v3.5.0.2
Disclosures about Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2016
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:

 

 

 

June 30, 2016

 

 

December 31, 2015

 

(in millions)

 

Carrying

Amount

 

 

Fair

Value

 

 

Carrying

Amount

 

 

Fair

Value

 

Junior subordinated debentures

 

$

172.7

 

 

$

165.3

 

 

$

172.7

 

 

$

166.5

 

Senior unsecured fixed rate notes

 

 

139.4

 

 

 

146.5

 

 

 

139.3

 

 

 

141.8

 

Other indebtedness:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Floating rate loan stock

 

 

56.5

 

 

 

54.1

 

 

 

54.6

 

 

 

52.7

 

Note payable

 

 

0.6

 

 

 

0.6

 

 

 

0.6

 

 

 

0.6

 

 

 

$

369.2

 

 

$

366.5

 

 

$

367.2

 

 

$

361.6

 

 
v3.5.0.2
Shareholders' Equity (Tables)
 6 Months Ended
Jun. 30, 2016
Equity [Abstract]  
Schedule of Repurchase of Shares

A summary of common shares repurchased for the six months ended June 30, 2016 is shown below:

 

Repurchase Type

 

Date

Trading Plan

Initiated

 

2016

Purchase

Period

 

Number of

Shares

Repurchased

 

 

Average Price

of Shares

Repurchased

 

 

Total Cost

(in millions)

 

 

Repurchase

Authorization

Year

10b5-1 Trading Plan

 

12/16/2015

 

01/04/2016-02/11/2016

 

 

266,538

 

 

$

55.59

 

 

$

14.8

 

 

2013

10b5-1 Trading Plan

 

03/16/2016

 

03/16/2016-05/02/2016

 

 

162,893

 

 

$

55.62

 

 

 

9.1

 

 

2013

10b5-1 Trading Plan

 

06/16/2016

 

06/24/2016-06/28/2016

 

 

14,774

 

 

$

49.78

 

 

 

0.7

 

 

2016

Open Market

 

N/A

 

01/01/2016-05/02/2016

 

 

64,464

 

 

$

54.14

 

 

 

3.5

 

 

2013

Open Market

 

N/A

 

05/03/2016-06/30/2016

 

 

209,926

 

 

$

56.70

 

 

 

11.9

 

 

2016

Total

 

 

 

 

 

 

718,595

 

 

$

55.67

 

 

$

40.0

 

 

 

 
v3.5.0.2
Accumulated Other Comprehensive Income (Loss) (Tables)
 6 Months Ended
Jun. 30, 2016
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 for the six months ended June 30, 2016 and 2015 is presented below:

 

(in millions)

 

Foreign Currency Translation Adjustments

 

 

Unrealized

Holding Gains

on Securities

 

 

Defined Benefit Pension Plans

 

 

Total

 

Balance, January 1, 2016

 

$

(21.6

)

 

$

40.0

 

 

$

(6.9

)

 

$

11.5

 

Other comprehensive income before

   reclassifications

 

 

3.8

 

 

 

58.0

 

 

 

—

 

 

 

61.8

 

Amounts reclassified from accumulated other

   comprehensive (loss)

 

 

—

 

 

 

(4.2

)

 

 

—

 

 

 

(4.2

)

Net current-period other comprehensive

   income

 

 

3.8

 

 

 

53.8

 

 

 

—

 

 

 

57.6

 

Balance at June 30, 2016

 

$

(17.8

)

 

$

93.8

 

 

$

(6.9

)

 

$

69.1

 

 

(in millions)

 

Foreign Currency Translation Adjustments

 

 

Unrealized

Holding Gains

on Securities

 

 

Defined Benefit Pension Plans

 

 

Total

 

Balance, January 1, 2015

 

$

(15.6

)

 

$

130.7

 

 

$

(7.0

)

 

$

108.1

 

Other comprehensive (loss) income before

   reclassifications

 

 

(2.6

)

 

 

(24.3

)

 

 

—

 

 

 

(26.9

)

Amounts reclassified from accumulated other

   comprehensive (loss) income

 

 

—

 

 

 

(4.1

)

 

 

—

 

 

 

(4.1

)

Net current-period other comprehensive

   (loss) income

 

 

(2.6

)

 

 

(28.4

)

 

 

—

 

 

 

(31.0

)

Balance at June 30, 2015

 

$

(18.2

)

 

$

102.3

 

 

$

(7.0

)

 

$

77.1

 

 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)

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

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Unrealized gains and losses on securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized investment (gain)

 

$

(0.3

)

 

$

(9.5

)

 

$

(8.1

)

 

$

(7.0

)

Provision for income tax (benefit)

 

 

(0.2

)

 

 

2.8

 

 

 

3.9

 

 

 

2.9

 

Net of taxes

 

$

(0.5

)

 

$

(6.7

)

 

$

(4.2

)

 

$

(4.1

)

 
v3.5.0.2
Net Income Per Common Share (Tables)
 6 Months Ended
Jun. 30, 2016
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 Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

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

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Net income

 

$

30.9

 

 

$

27.9

 

 

$

58.6

 

 

$

86.7

 

Weighted average common shares outstanding - basic

 

 

30,187,592

 

 

 

30,742,865

 

 

 

30,333,417

 

 

 

30,841,708

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity compensation awards

 

 

622,564

 

 

 

573,939

 

 

 

637,772

 

 

 

588,198

 

Weighted average common shares outstanding - diluted

 

 

30,810,156

 

 

 

31,316,804

 

 

 

30,971,189

 

 

 

31,429,906

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.03

 

 

$

0.91

 

 

$

1.93

 

 

$

2.81

 

Diluted

 

$

1.00

 

 

$

0.89

 

 

$

1.89

 

 

$

2.76

 

 
v3.5.0.2
Supplemental Cash Flow Information (Tables)
 6 Months Ended
Jun. 30, 2016
Supplemental Cash Flow Elements [Abstract]  
Schedule of Interest Paid

Interest paid was as follows:

 

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

Senior unsecured fixed rate notes

 

$

4.7

 

 

$

4.7

 

Junior subordinated debentures

 

 

3.8

 

 

 

3.5

 

Other indebtedness

 

 

1.2

 

 

 

1.2

 

Total interest paid

 

$

9.7

 

 

$

9.4

 

 
v3.5.0.2
Share-based Compensation (Tables)
 6 Months Ended
Jun. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Fair Value Assumptions

The following table summarizes the assumptions we used for the six months ended June 30, 2016 and 2015:

 

 

 

For the Six Months Ended June 30,

 

 

 

2016

 

 

2015

 

Risk-free rate of return

 

 

1.00%

 

 

 

1.70%

 

Expected dividend yields

 

 

1.70%

 

 

 

1.57%

 

Expected award life (years)

 

 

4.54

 

 

4.62

 

Expected volatility

 

 

19.70%

 

 

 

21.10%

 

 
Summary of Restricted Share Activity

A summary of restricted share activity as of June 30, 2016 and changes during the six months then ended is as follows:

 

 

 

Shares

 

 

Weighted-Average

Grant Date

Fair Value

 

Outstanding at January 1, 2016

 

 

514,742

 

 

$

40.51

 

Granted

 

 

251,302

 

 

$

55.33

 

Vested and issued

 

 

(70,534

)

 

$

35.90

 

Expired or forfeited

 

 

(10,016

)

 

$

45.90

 

Outstanding at June 30, 2016

 

 

685,494

 

 

$

46.34

 

 
Summary of Stock-Settled SARs Activity

A summary of stock-settled SARs activity as of June 30, 2016 and changes during the six months then ended is as follows:

 

 

 

Shares

 

 

Weighted-Average

Exercise Price

 

Outstanding at January 1, 2016

 

 

1,438,146

 

 

$

32.49

 

Granted

 

 

542

 

 

$

40.38

 

Converted from cash-settled SARs

 

 

944,046

 

 

$

45.31

 

Exercised

 

 

(103,150

)

 

$

28.56

 

Expired or forfeited

 

 

(96,929

)

 

$

46.63

 

Outstanding at June 30, 2016

 

 

2,182,655

 

 

$

37.59

 

 
Summary of Cash-Settled SARs Activity

A summary of cash-settled SARs activity as of June 30, 2016 and changes during the six months then ended is as follows:

 

 

 

Shares

 

 

Weighted-Average

Exercise Price

 

Outstanding at January 1, 2016

 

 

2,220,560

 

 

$

39.06

 

Granted

 

 

540

 

 

$

40.38

 

Converted to stock-settled SARs(1)

 

 

(864,036

)

 

$

45.33

 

Exercised

 

 

(358,698

)

 

$

33.82

 

Expired or forfeited

 

 

(79,576

)

 

$

43.60

 

Outstanding at June 30, 2016

 

 

918,790

 

 

$

34.83

 

 

(1)

The converted shares were not adjusted for the 10% stock dividend because the conversion occurred prior to the stock          dividend record date.

v3.5.0.2
Underwriting, Acquisition and Insurance Expenses (Tables)
 6 Months Ended
Jun. 30, 2016
Underwriting Acquisition And Insurance Expenses [Abstract]  
Underwriting, Acquisition and Insurance Expenses

Underwriting, acquisition and insurance expenses were as follows:

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Commissions

 

$

62.1

 

 

$

67.2

 

 

$

119.2

 

 

$

125.9

 

General expenses

 

 

71.1

 

 

 

79.7

 

 

 

141.7

 

 

 

152.6

 

Premium taxes, boards and bureaus

 

 

6.3

 

 

 

—

 

 

 

12.9

 

 

 

0.6

 

 

 

 

139.5

 

 

 

146.9

 

 

 

273.8

 

 

 

279.1

 

Net deferral of policy acquisition costs

 

 

(6.5

)

 

 

(7.4

)

 

 

(8.2

)

 

 

(10.0

)

Total underwriting, acquisition and insurance expenses

 

$

133.0

 

 

$

139.5

 

 

$

265.6

 

 

$

269.1

 

 
v3.5.0.2
Income Taxes (Tables)
 6 Months Ended
Jun. 30, 2016
Income Tax Disclosure [Abstract]  
Income Tax Provision (Benefit)

Our income tax provision includes the following components:

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Current tax provision

 

$

6.5

 

 

$

9.0

 

 

$

8.0

 

 

$

8.8

 

Deferred tax provision (benefit) related to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Future tax deductions

 

 

2.0

 

 

 

(2.9

)

 

 

4.9

 

 

 

2.6

 

Valuation allowance change

 

 

0.2

 

 

 

0.7

 

 

 

1.2

 

 

 

(1.0

)

Income tax provision

 

$

8.7

 

 

$

6.8

 

 

$

14.1

 

 

$

10.4

 

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

For the three and six months ended June 30, 2016 and 2015, pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows:

 

 

 

For the Three Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

 

Pre-Tax

Income (Loss)

 

 

Effective

Tax

Rate

 

 

Pre-Tax

Income (Loss)

 

 

Effective

Tax

Rate

 

Bermuda

 

$

22.1

 

 

 

0.0

%

 

$

18.3

 

 

 

0.0

%

United States

 

 

26.5

 

 

 

30.9

%

 

 

20.2

 

 

 

27.0

%

United Kingdom

 

 

(9.8

)

 

 

-5.7

%

 

 

(2.9

)

 

 

-46.9

%

Belgium

 

 

—

 

(1)

 

16.3

%

 

 

0.1

 

 

 

16.5

%

Brazil

 

 

0.8

 

 

 

0.0

%

 

 

(1.2

)

 

 

0.0

%

United Arab Emirates

 

 

—

 

(1)

 

0.0

%

 

 

0.1

 

 

 

0.0

%

Ireland

 

 

(0.1

)

 

 

0.0

%

 

 

(0.1

)

 

 

0.0

%

Malta

 

 

0.1

 

 

 

0.0

%

 

 

0.2

 

 

 

0.0

%

Switzerland

 

 

—

 

(1)

 

22.8

%

 

 

—

 

(1)

 

-36.7

%

Pre-tax income

 

$

39.6

 

 

 

 

 

 

$

34.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

 

Pre-Tax

Income (Loss)

 

 

Effective

Tax

Rate

 

 

Pre-Tax

Income (Loss)

 

 

Effective

Tax

Rate

 

Bermuda

 

$

44.1

 

 

 

0.0

%

 

$

44.0

 

 

 

0.0

%

United States

 

 

49.8

 

 

 

27.5

%

 

 

48.7

 

 

 

23.0

%

United Kingdom

 

 

(22.1

)

 

 

-1.7

%

 

 

7.2

 

 

 

-12.0

%

Belgium

 

 

—

 

(1)

 

32.0

%

 

 

(0.1

)

 

 

-24.2

%

Brazil

 

 

0.7

 

 

 

0.0

%

 

 

(3.0

)

 

 

0.0

%

United Arab Emirates

 

 

—

 

(1)

 

0.0

%

 

 

0.1

 

 

 

0.0

%

Ireland

 

 

(0.1

)

 

 

0.0

%

 

 

(0.1

)

 

 

0.0

%

Malta

 

 

0.3

 

 

 

0.0

%

 

 

0.3

 

 

 

0.0

%

Switzerland

 

 

—

 

(1)

 

21.1

%

 

 

—

 

(1)

 

-18.6

%

Pre-tax income

 

$

72.7

 

 

 

 

 

 

$

97.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) 

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

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 Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Income tax provision at expected rate

 

$

7.6

 

 

$

6.2

 

 

$

13.4

 

 

$

17.4

 

Tax effect of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt interest

 

 

(0.9

)

 

 

(1.0

)

 

 

(1.8

)

 

 

(1.9

)

Dividends received deduction

 

 

(0.8

)

 

 

(0.6

)

 

 

(1.3

)

 

 

(1.2

)

Valuation allowance change

 

 

0.2

 

 

 

0.7

 

 

 

1.2

 

 

 

(1.0

)

Other permanent adjustments, net

 

 

—

 

 

 

—

 

 

 

0.2

 

 

 

0.2

 

Adjustment for annualized rate

 

 

0.9

 

 

 

0.3

 

 

 

(0.6

)

 

 

(0.2

)

United States state tax benefit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2.5

)

Other foreign adjustments

 

 

(0.6

)

 

 

0.4

 

 

 

(0.6

)

 

 

0.1

 

Foreign tax credit utilization

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1.2

)

Deferred tax rate reduction

 

 

—

 

 

 

—

 

 

 

(0.3

)

 

 

—

 

Foreign exchange adjustments

 

 

2.1

 

 

 

0.6

 

 

 

3.6

 

 

 

0.4

 

Foreign withholding taxes

 

 

0.2

 

 

 

0.2

 

 

 

0.3

 

 

 

0.3

 

Income tax provision

 

$

8.7

 

 

$

6.8

 

 

$

14.1

 

 

$

10.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit) - Foreign

 

$

0.6

 

 

$

1.4

 

 

$

0.4

 

 

$

(0.8

)

Income tax provision - United States, Federal

 

 

7.9

 

 

 

5.2

 

 

 

13.5

 

 

 

14.7

 

Income tax benefit  - United States, State

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3.8

)

Foreign withholding tax - United States

 

 

0.2

 

 

 

0.2

 

 

 

0.2

 

 

 

0.3

 

Income tax provision

 

$

8.7

 

 

$

6.8

 

 

$

14.1

 

 

$

10.4

 

 
v3.5.0.2
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2016
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 Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

2016

 

 

2015

 

 

2016

 

 

2015

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess and Surplus Lines

$

121.3

 

 

$

118.4

 

 

$

241.1

 

 

$

230.3

 

Commercial Specialty

 

85.5

 

 

 

84.4

 

 

 

172.3

 

 

 

168.2

 

International Specialty

 

39.7

 

 

 

37.2

 

 

 

77.5

 

 

 

73.4

 

Syndicate 1200

 

98.2

 

 

 

105.6

 

 

 

198.7

 

 

 

208.6

 

Run-off Lines

 

0.2

 

 

 

0.4

 

 

 

0.2

 

 

 

0.1

 

Total earned premiums

 

344.9

 

 

 

346.0

 

 

 

689.8

 

 

 

680.6

 

Net investment income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess and Surplus Lines

 

13.7

 

 

 

9.4

 

 

 

22.4

 

 

 

17.4

 

Commercial Specialty

 

8.0

 

 

 

5.7

 

 

 

13.1

 

 

 

10.7

 

International Specialty

 

5.0

 

 

 

3.3

 

 

 

8.3

 

 

 

6.2

 

Syndicate 1200

 

4.1

 

 

 

2.6

 

 

 

6.9

 

 

 

4.8

 

Run-off Lines

 

3.4

 

 

 

2.4

 

 

 

5.6

 

 

 

4.4

 

Corporate and Other

 

1.5

 

 

 

1.0

 

 

 

0.6

 

 

 

6.6

 

Total net investment income

 

35.7

 

 

 

24.4

 

 

 

56.9

 

 

 

50.1

 

Fee and other income

 

5.8

 

 

 

4.1

 

 

 

12.6

 

 

 

8.7

 

Net realized investment and other (losses) gains

 

(2.1

)

 

 

2.7

 

 

 

(4.9

)

 

 

13.8

 

Total revenue

$

384.3

 

 

$

377.2

 

 

$

754.4

 

 

$

753.2

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

2016

 

 

2015

 

 

2016

 

 

2015

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess and Surplus Lines

$

25.0

 

 

$

20.7

 

 

$

46.2

 

 

$

42.1

 

Commercial Specialty

 

20.4

 

 

 

9.5

 

 

 

34.1

 

 

 

16.6

 

International Specialty

 

6.9

 

 

 

9.1

 

 

 

17.2

 

 

 

18.0

 

Syndicate 1200

 

8.4

 

 

 

10.3

 

 

 

15.8

 

 

 

21.5

 

Run-off Lines

 

(3.2

)

 

 

(0.8

)

 

 

(4.6

)

 

 

0.4

 

Total segment income before taxes

 

57.5

 

 

 

48.8

 

 

 

108.7

 

 

 

98.6

 

Corporate and Other

 

(15.8

)

 

 

(16.8

)

 

 

(31.1

)

 

 

(15.3

)

Net realized investment and other (losses) gains

 

(2.1

)

 

 

2.7

 

 

 

(4.9

)

 

 

13.8

 

Total income before income taxes

$

39.6

 

 

$

34.7

 

 

$

72.7

 

 

$

97.1

 

 
Schedule of Earned Premiums by Geographic Location

The table below presents earned premiums by geographic location for the three and six months ended June 30, 2016 and 2015. 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 Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(in millions)

2016

 

 

2015

 

 

2016

 

 

2015

 

Bermuda

$

29.0

 

 

$

26.1

 

 

$

57.1

 

 

$

50.0

 

Brazil

 

10.0

 

 

 

11.9

 

 

 

19.2

 

 

 

24.4

 

Malta

 

0.5

 

 

 

0.4

 

 

 

1.0

 

 

 

0.9

 

United Kingdom

 

98.1

 

 

 

104.5

 

 

 

198.7

 

 

 

206.4

 

United States

 

207.3

 

 

 

203.1

 

 

 

413.8

 

 

 

398.9

 

Total earned premiums

$

344.9

 

 

$

346.0

 

 

$

689.8

 

 

$

680.6

 

 
Identifiable Assets

 

The following table represents identifiable assets:

 

 

June 30,

 

 

December 31,

 

(in millions)

2016

 

 

2015

 

Excess and Surplus Lines

$

2,233.2

 

 

$

2,174.8

 

Commercial Specialty

 

1,532.5

 

 

 

1,511.7

 

International Specialty

 

979.7

 

 

 

877.2

 

Syndicate 1200

 

1,322.3

 

 

 

1,216.5

 

Run-off Lines

 

541.8

 

 

 

558.4

 

Corporate and Other

 

351.3

 

 

 

287.0

 

Total

$

6,960.8

 

 

$

6,625.6

 

 
v3.5.0.2
Senior Unsecured Fixed Rate Notes (Tables)
 6 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
Schedule Of Unamortized Debt Issuance Costs Deducted From Carrying Value Of Debt Liability

At June 30, 2016 and December 31, 2015, the Notes consisted of the following:

 

(in millions)

June 30,

2016

 

 

December 31,

2015

 

Senior unsecured fixed rate notes

 

 

 

 

 

 

 

Principal

$

143.8

 

 

$

143.8

 

Less: unamortized debt issuance costs

 

(4.4

)

 

 

(4.5

)

Senior unsecured fixed rate notes, less unamortized debt issuance costs

$

139.4

 

 

$

139.3

 

 
Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

June 30, 2016

(in millions)

(Unaudited)

 

 

 

 

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

 

$

(2.1

)

 

$

2,770.9

 

 

$

1,389.3

 

 

$

—

 

 

$

4,158.1

 

Cash

 

 

—

 

 

 

82.9

 

 

 

37.7

 

 

 

—

 

 

 

120.6

 

Accrued investment income

 

 

—

 

 

 

15.5

 

 

 

5.2

 

 

 

—

 

 

 

20.7

 

Premiums receivable

 

 

—

 

 

 

211.0

 

 

 

300.2

 

 

 

—

 

 

 

511.2

 

Reinsurance recoverables

 

 

—

 

 

 

1,251.3

 

 

 

(46.3

)

 

 

—

 

 

 

1,205.0

 

Goodwill and other intangible assets, net

 

 

—

 

 

 

128.4

 

 

 

94.3

 

 

 

—

 

 

 

222.7

 

Current income taxes receivable, net

 

 

—

 

 

 

2.0

 

 

 

0.9

 

 

 

—

 

 

 

2.9

 

Deferred acquisition costs, net

 

 

—

 

 

 

60.4

 

 

 

84.2

 

 

 

—

 

 

 

144.6

 

Ceded unearned premiums

 

 

—

 

 

 

154.1

 

 

 

158.1

 

 

 

—

 

 

 

312.2

 

Other assets

 

 

10.7

 

 

 

162.8

 

 

 

89.3

 

 

 

—

 

 

 

262.8

 

Intercompany note receivable

 

 

—

 

 

 

50.2

 

 

 

(50.2

)

 

 

—

 

 

 

—

 

Investments in subsidiaries

 

 

1,804.0

 

 

 

—

 

 

 

—

 

 

 

(1,804.0

)

 

 

—

 

Total assets

 

$

1,812.6

 

 

$

4,889.5

 

 

$

2,062.7

 

 

$

(1,804.0

)

 

$

6,960.8

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves for losses and loss adjustment expenses

 

$

—

 

 

 

2,209.2

 

 

 

972.7

 

 

$

—

 

 

$

3,181.9

 

Unearned premiums

 

 

—

 

 

 

529.2

 

 

 

427.3

 

 

 

—

 

 

 

956.5

 

Funds held and ceded reinsurance payable, net

 

 

—

 

 

 

745.6

 

 

 

(216.9

)

 

 

—

 

 

 

528.7

 

Long-term debt

 

 

28.3

 

 

 

284.3

 

 

 

56.6

 

 

 

—

 

 

 

369.2

 

Deferred tax liabilities, net

 

 

—

 

 

 

37.4

 

 

 

7.7

 

 

 

—

 

 

 

45.1

 

Accrued underwriting expenses and other liabilities

 

 

12.3

 

 

 

79.5

 

 

 

47.3

 

 

 

—

 

 

 

139.1

 

Due to (from) affiliates

 

 

31.7

 

 

 

1.6

 

 

 

(1.6

)

 

 

(31.7

)

 

 

—

 

Total liabilities

 

 

72.3

 

 

 

3,886.8

 

 

 

1,293.1

 

 

 

(31.7

)

 

 

5,220.5

 

Total shareholders' equity

 

 

1,740.3

 

 

 

1,002.7

 

 

 

769.6

 

 

 

(1,772.3

)

 

 

1,740.3

 

Total liabilities and shareholders' equity

 

$

1,812.6

 

 

$

4,889.5

 

 

$

2,062.7

 

 

$

(1,804.0

)

 

$

6,960.8

 

 

(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, 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

 

 

 

151.7

 

 

 

60.8

 

 

 

—

 

 

 

220.7

 

Intercompany note receivable

 

 

—

 

 

 

49.8

 

 

 

(49.8

)

 

 

—

 

 

 

—

 

Investments in subsidiaries

 

 

1,715.9

 

 

 

—

 

 

 

—

 

 

 

(1,715.9

)

 

 

—

 

Total assets

 

$

1,730.3

 

 

$

4,764.8

 

 

$

1,846.4

 

 

$

(1,715.9

)

 

$

6,625.6

 

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

 

 

 

284.2

 

 

 

54.6

 

 

 

—

 

 

 

367.2

 

Deferred tax liabilities, net

 

 

—

 

 

 

11.9

 

 

 

11.7

 

 

 

—

 

 

 

23.6

 

Accrued underwriting expenses and other liabilities

 

 

16.3

 

 

 

95.4

 

 

 

54.7

 

 

 

—

 

 

 

166.4

 

Due to (from) affiliates

 

 

17.5

 

 

 

2.3

 

 

 

(2.3

)

 

 

(17.5

)

 

 

—

 

Total liabilities

 

 

62.2

 

 

 

3,792.0

 

 

 

1,120.8

 

 

 

(17.5

)

 

 

4,957.5

 

Total shareholders' equity

 

 

1,668.1

 

 

 

972.8

 

 

 

725.6

 

 

 

(1,698.4

)

 

 

1,668.1

 

Total liabilities and shareholders' equity

 

$

1,730.3

 

 

$

4,764.8

 

 

$

1,846.4

 

 

$

(1,715.9

)

 

$

6,625.6

 

 

(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 THREE MONTHS ENDED JUNE 30, 2016

(in millions)

(Unaudited)

 

 

 

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

 

$

—

 

 

$

120.2

 

 

$

224.7

 

 

$

—

 

 

$

344.9

 

Net investment income (expense)

 

 

(0.5

)

 

 

27.5

 

 

 

8.7

 

 

 

—

 

 

 

35.7

 

Fee and other income

 

 

—

 

 

 

4.2

 

 

 

1.6

 

 

 

—

 

 

 

5.8

 

Net realized investment and other (losses)

   gains

 

 

0.2

 

 

 

1.9

 

 

 

(4.2

)

 

 

—

 

 

 

(2.1

)

Total revenue

 

 

(0.3

)

 

 

153.8

 

 

 

230.8

 

 

 

—

 

 

 

384.3

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

—

 

 

 

69.1

 

 

 

127.5

 

 

 

—

 

 

 

196.6

 

Underwriting, acquisition and insurance

   expenses

 

 

1.1

 

 

 

49.0

 

 

 

82.9

 

 

 

—

 

 

 

133.0

 

Interest expense

 

 

0.4

 

 

 

3.9

 

 

 

0.6

 

 

 

—

 

 

 

4.9

 

Fee and other expense

 

 

—

 

 

 

5.0

 

 

 

0.7

 

 

 

—

 

 

 

5.7

 

Foreign currency exchange loss

 

 

—

 

 

 

(0.1

)

 

 

4.6

 

 

 

—

 

 

 

4.5

 

Total expenses

 

 

1.5

 

 

 

126.9

 

 

 

216.3

 

 

 

—

 

 

 

344.7

 

Income before income taxes

 

 

(1.8

)

 

 

26.9

 

 

 

14.5

 

 

 

—

 

 

 

39.6

 

Provision for income taxes

 

 

—

 

 

 

8.3

 

 

 

0.4

 

 

 

—

 

 

 

8.7

 

Net income before equity in earnings of

   subsidiaries

 

 

(1.8

)

 

 

18.6

 

 

 

14.1

 

 

 

—

 

 

 

30.9

 

Equity in undistributed earnings of

   subsidiaries

 

 

32.7

 

 

 

—

 

 

 

—

 

 

 

(32.7

)

 

 

—

 

Net income

 

$

30.9

 

 

$

18.6

 

 

$

14.1

 

 

$

(32.7

)

 

$

30.9

 

 

(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 THREE MONTHS ENDED JUNE 30, 2015

(in millions)

(Unaudited)

 

 

 

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

 

$

—

 

 

$

118.8

 

 

$

227.2

 

 

$

—

 

 

$

346.0

 

Net investment income (expense)

 

 

(0.3

)

 

 

16.6

 

 

 

8.1

 

 

 

—

 

 

 

24.4

 

Fee and other income

 

 

 

 

 

 

2.8

 

 

 

1.3

 

 

 

—

 

 

 

4.1

 

Net realized investment and other (losses)

   gains

 

 

2.0

 

 

 

4.8

 

 

 

(2.1

)

 

 

(2.0

)

 

 

2.7

 

Total revenue

 

 

1.7

 

 

 

143.0

 

 

 

234.5

 

 

 

(2.0

)

 

 

377.2

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

—

 

 

 

64.4

 

 

 

126.2

 

 

 

—

 

 

 

190.6

 

Underwriting, acquisition and insurance

   expenses

 

 

4.8

 

 

 

49.6

 

 

 

85.1

 

 

 

—

 

 

 

139.5

 

Interest expense

 

 

0.2

 

 

 

3.8

 

 

 

0.6

 

 

 

—

 

 

 

4.6

 

Fee and other expense

 

 

—

 

 

 

4.4

 

 

 

0.4

 

 

 

—

 

 

 

4.8

 

Foreign currency exchange loss (gains)

 

 

—

 

 

 

0.1

 

 

 

2.9

 

 

 

—

 

 

 

3.0

 

Total expenses

 

 

5.0

 

 

 

122.3

 

 

 

215.2

 

 

 

—

 

 

 

342.5

 

Income before income taxes

 

 

(3.3

)

 

 

20.7

 

 

 

19.3

 

 

 

(2.0

)

 

 

34.7

 

Provision for income taxes

 

 

—

 

 

 

5.4

 

 

 

1.4

 

 

 

—

 

 

 

6.8

 

Net income before equity in earnings of

   subsidiaries

 

 

(3.3

)

 

 

15.3

 

 

 

17.9

 

 

 

(2.0

)

 

 

27.9

 

Equity in undistributed earnings of

   subsidiaries

 

 

31.2

 

 

 

—

 

 

 

—

 

 

 

(31.2

)

 

 

—

 

Net income

 

$

27.9

 

 

$

15.3

 

 

$

17.9

 

 

$

(33.2

)

 

$

27.9

 

 

(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 SIX MONTHS ENDED JUNE 30, 2016

(in millions)

(Unaudited)

 

 

 

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

 

$

—

 

 

$

240.1

 

 

$

449.7

 

 

$

—

 

 

$

689.8

 

Net investment income (expense)

 

 

(1.1

)

 

 

40.1

 

 

 

17.9

 

 

 

—

 

 

 

56.9

 

Fee and other income

 

 

—

 

 

 

9.4

 

 

 

3.2

 

 

 

—

 

 

 

12.6

 

Net realized investment and other (losses)

   gains

 

 

0.2

 

 

 

13.1

 

 

 

(18.2

)

 

 

—

 

 

 

(4.9

)

Total revenue

 

 

(0.9

)

 

 

302.7

 

 

 

452.6

 

 

 

—

 

 

 

754.4

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

—

 

 

 

137.4

 

 

 

250.8

 

 

 

—

 

 

 

388.2

 

Underwriting, acquisition and insurance

   expenses

 

 

6.3

 

 

 

96.6

 

 

 

162.7

 

 

 

—

 

 

 

265.6

 

Interest expense

 

 

0.7

 

 

 

7.8

 

 

 

1.2

 

 

 

—

 

 

 

9.7

 

Fee and other expense

 

 

—

 

 

 

11.2

 

 

 

1.0

 

 

 

—

 

 

 

12.2

 

Foreign currency exchange loss (gains)

 

 

—

 

 

 

(0.1

)

 

 

6.1

 

 

 

—

 

 

 

6.0

 

Impairment of intangible assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total expenses

 

 

7.0

 

 

 

252.9

 

 

 

421.8

 

 

 

—

 

 

 

681.7

 

Income before income taxes

 

 

(7.9

)

 

 

49.8

 

 

 

30.8

 

 

 

—

 

 

 

72.7

 

Provision for income taxes

 

 

—

 

 

 

13.7

 

 

 

0.4

 

 

 

—

 

 

 

14.1

 

Net income before equity in earnings of

   subsidiaries

 

 

(7.9

)

 

 

36.1

 

 

 

30.4

 

 

 

—

 

 

 

58.6

 

Equity in undistributed earnings of

   subsidiaries

 

 

66.5

 

 

 

—

 

 

 

—

 

 

 

(66.5

)

 

 

—

 

Net income

 

$

58.6

 

 

$

36.1

 

 

$

30.4

 

 

$

(66.5

)

 

$

58.6

 

(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 SIX MONTHS ENDED JUNE 30, 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

 

$

—

 

 

$

253.9

 

 

$

426.7

 

 

$

—

 

 

$

680.6

 

Net investment income (expense)

 

 

(0.5

)

 

 

36.0

 

 

 

14.6

 

 

 

—

 

 

 

50.1

 

Fee and other income

 

 

 

 

 

 

6.4

 

 

 

2.3

 

 

 

—

 

 

 

8.7

 

Net realized investment and other (losses)

   gains

 

 

2.0

 

 

 

15.8

 

 

 

(2.0

)

 

 

(2.0

)

 

 

13.8

 

Total revenue

 

 

1.5

 

 

 

312.1

 

 

 

441.6

 

 

 

(2.0

)

 

 

753.2

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

—

 

 

 

144.6

 

 

 

229.7

 

 

 

—

 

 

 

374.3

 

Underwriting, acquisition and insurance

   expenses

 

 

9.5

 

 

 

101.5

 

 

 

158.1

 

 

 

—

 

 

 

269.1

 

Interest expense

 

 

0.7

 

 

 

7.6

 

 

 

1.2

 

 

 

—

 

 

 

9.5

 

Fee and other expense

 

 

—

 

 

 

8.8

 

 

 

1.0

 

 

 

—

 

 

 

9.8

 

Foreign currency exchange loss (gains)

 

 

—

 

 

 

0.9

 

 

 

(7.5

)

 

 

—

 

 

 

(6.6

)

Impairment of intangible assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total expenses

 

 

10.2

 

 

 

263.4

 

 

 

382.5

 

 

 

—

 

 

 

656.1

 

Income before income taxes

 

 

(8.7

)

 

 

48.7

 

 

 

59.1

 

 

 

(2.0

)

 

 

97.1

 

Provision for income taxes

 

 

—

 

 

 

11.2

 

 

 

(0.8

)

 

 

—

 

 

 

10.4

 

Net income before equity in earnings of

   subsidiaries

 

 

(8.7

)

 

 

37.5

 

 

 

59.9

 

 

 

(2.0

)

 

 

86.7

 

Equity in undistributed earnings of

   subsidiaries

 

 

95.4

 

 

 

—

 

 

 

—

 

 

 

(95.4

)

 

 

—

 

Net income

 

$

86.7

 

 

$

37.5

 

 

$

59.9

 

 

$

(97.4

)

 

$

86.7

 

 
Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2016

(in millions)

(Unaudited)

 

 

 

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 (used by) operating activities

 

$

14.7

 

 

$

(9.3

)

 

$

26.1

 

 

$

—

 

 

$

31.5

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales of investments

 

 

—

 

 

 

490.0

 

 

 

140.5

 

 

 

—

 

 

 

630.5

 

Maturities and mandatory calls of fixed

   maturity investments

 

 

—

 

 

 

296.9

 

 

 

376.4

 

 

 

—

 

 

 

673.3

 

Purchases of investments

 

 

—

 

 

 

(720.1

)

 

 

(535.6

)

 

 

—

 

 

 

(1,255.7

)

Change in short-term investments and

   foreign regulatory deposits

 

 

(1.8

)

 

 

(12.3

)

 

 

3.1

 

 

 

—

 

 

 

(11.0

)

Settlements of foreign currency exchange

   forward contracts

 

 

—

 

 

 

—

 

 

 

6.8

 

 

 

—

 

 

 

6.8

 

Purchases of fixed assets and other, net

 

 

—

 

 

 

(11.2

)

 

 

(12.4

)

 

 

—

 

 

 

(23.6

)

Cash provided (used by) investing activities

 

 

(1.8

)

 

 

43.3

 

 

 

(21.2

)

 

 

—

 

 

 

20.3

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Activity under stock incentive plans

 

 

0.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.2

 

Repurchase of Company's common shares

 

 

—

 

 

 

(40.0

)

 

 

—

 

 

 

—

 

 

 

(40.0

)

Excess tax expense from share-based

   payment arrangements

 

 

—

 

 

 

0.1

 

 

 

—

 

 

 

—

 

 

 

0.1

 

Payment of cash dividend to common

   shareholders

 

 

(13.1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(13.1

)

Cash used by financing activities

 

 

(12.9

)

 

 

(39.9

)

 

 

—

 

 

 

—

 

 

 

(52.8

)

Effect of exchange rate changes on cash

 

 

—

 

 

 

—

 

 

 

(0.1

)

 

 

—

 

 

 

(0.1

)

Change in cash

 

 

—

 

 

 

(5.9

)

 

 

4.8

 

 

 

—

 

 

 

(1.1

)

Cash, beginning of the period

 

 

—

 

 

 

88.8

 

 

 

32.9

 

 

 

—

 

 

 

121.7

 

Cash, end of period

 

$

—

 

 

$

82.9

 

 

$

37.7

 

 

$

—

 

 

$

120.6

 

 

(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 THE SIX MONTHS ENDED JUNE 30, 2015

(in millions)

(Unaudited)

 

 

 

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

 

$

11.4

 

 

$

20.7

 

 

$

62.5

 

 

$

—

 

 

$

94.6

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales of investments

 

 

—

 

 

 

493.4

 

 

 

150.5

 

 

 

—

 

 

 

643.9

 

Maturities and mandatory calls of fixed

   maturity investments

 

 

—

 

 

 

311.7

 

 

 

70.9

 

 

 

—

 

 

 

382.6

 

Purchases of investments

 

 

—

 

 

 

(770.6

)

 

 

(246.7

)

 

 

—

 

 

 

(1,017.3

)

Change in short-term investments and

   foreign regulatory deposits

 

 

0.2

 

 

 

(6.9

)

 

 

(34.0

)

 

 

—

 

 

 

(40.7

)

Settlements of foreign currency exchange

   forward contracts

 

 

0.8

 

 

 

—

 

 

 

(5.4

)

 

 

—

 

 

 

(4.6

)

Purchases of fixed assets and other, net

 

 

0.2

 

 

 

(0.4

)

 

 

4.4

 

 

 

—

 

 

 

4.2

 

Cash provided (used by) investing activities

 

 

1.2

 

 

 

27.2

 

 

 

(60.3

)

 

 

—

 

 

 

(31.9

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Activity under stock incentive plans

 

 

(1.4

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1.4

)

Repurchase of Company's common shares

 

 

—

 

 

 

(24.9

)

 

 

—

 

 

 

—

 

 

 

(24.9

)

Excess tax expense from share-based

   payment arrangements

 

 

—

 

 

 

0.1

 

 

 

—

 

 

 

—

 

 

 

0.1

 

Payment of cash dividend to common

   shareholders

 

 

(11.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11.2

)

Cash used by financing activities

 

 

(12.6

)

 

 

(24.8

)

 

 

—

 

 

 

—

 

 

 

(37.4

)

Effect of exchange rate changes on cash

 

 

—

 

 

 

—

 

 

 

0.2

 

 

 

—

 

 

 

0.2

 

Change in cash

 

 

—

 

 

 

23.1

 

 

 

2.4

 

 

 

—

 

 

 

25.5

 

Cash, beginning of period

 

 

—

 

 

 

49.3

 

 

 

31.7

 

 

 

—

 

 

 

81.0

 

Cash, end of period

 

$

—

 

 

$

72.4

 

 

$

34.1

 

 

$

—

 

 

$

106.5

 

 

(1) 

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

(2) 

Includes all Argo Group parent company eliminations.
v3.5.0.2
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Accumulated Other Comprehensive Income Loss [Line Items]        
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance     $ 11.5 [1] $ 108.1
Other comprehensive (loss) income before reclassifications     61.8 (26.9)
Amounts reclassified from accumulated other comprehensive (loss) income     (4.2) (4.1)
Other comprehensive income (loss), net of tax $ 28.8 $ (9.0) 57.6 (31.0)
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance 69.1 77.1 69.1 77.1
Foreign Currency Translation Adjustments        
Accumulated Other Comprehensive Income Loss [Line Items]        
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance     (21.6) (15.6)
Other comprehensive (loss) income before reclassifications     3.8 (2.6)
Amounts reclassified from accumulated other comprehensive (loss) income     0.0 0.0
Other comprehensive income (loss), net of tax     3.8 (2.6)
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance (17.8) (18.2) (17.8) (18.2)
Unrealized Holding Gains on Securities        
Accumulated Other Comprehensive Income Loss [Line Items]        
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance     40.0 130.7
Other comprehensive (loss) income before reclassifications     58.0 (24.3)
Amounts reclassified from accumulated other comprehensive (loss) income     (4.2) (4.1)
Other comprehensive income (loss), net of tax     53.8 (28.4)
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance 93.8 102.3 93.8 102.3
Defined Benefit Pension Plans        
Accumulated Other Comprehensive Income Loss [Line Items]        
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance     (6.9) (7.0)
Other comprehensive (loss) income before reclassifications     0.0 0.0
Amounts reclassified from accumulated other comprehensive (loss) income     0.0 0.0
Other comprehensive income (loss), net of tax     0.0 0.0
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance $ (6.9) $ (7.0) $ (6.9) $ (7.0)
[1] Derived from audited consolidated financial statements.
v3.5.0.2
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Unrealized gains and losses on securities:        
Net realized investment (gain) $ (0.3) $ (9.5) $ (8.1) $ (7.0)
Provision for income tax (benefit) (0.2) 2.8 3.9 2.9
Net of taxes     (4.2) (4.1)
Unrealized Holding Gains on Securities        
Unrealized gains and losses on securities:        
Net of taxes     (4.2) (4.1)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Holding Gains on Securities        
Unrealized gains and losses on securities:        
Net realized investment (gain) (0.3) (9.5) (8.1) (7.0)
Provision for income tax (benefit) (0.2) 2.8 3.9 2.9
Net of taxes $ (0.5) $ (6.7) $ (4.2) $ (4.1)
v3.5.0.2
Basis of Presentation - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 17, 2016
May 03, 2016
Jun. 15, 2015
May 05, 2015
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Basis Of Presentation [Line Items]                
Stock dividend declared   10.00%     10.00%   10.00%  
Additional stock issued as dividend   2,735,542            
Dividends declaration date   May 03, 2016   May 05, 2015        
Dividends payable date   Jun. 15, 2016            
Dividend payable, date of record Jun. 01, 2016 Jun. 01, 2016 Jun. 01, 2015          
Restatement Of Revenue [Member]                
Basis Of Presentation [Line Items]                
Increase in net investment income         $ 12.5 $ 2.6 $ 10.9 $ 7.5
Decrease in net realized investment and other gains         $ (12.5) $ (2.6) $ (10.9) $ (7.5)
v3.5.0.2
Recently Issued Accounting Pronouncements - Additional Information (Detail) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]    
Unamortized debt issuance costs related to senior unsecured fixed rate notes $ 4.4 $ 4.5
v3.5.0.2
Recently Issued Accounting Pronouncements - Effects of Retrospective Application of Guidance on Individual Financial Statement Line Items in Consolidated Balance Sheets (Detail) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
Item Effected [Line Items]    
Other assets $ 262.8 $ 220.7 [1]
Senior unsecured fixed rate notes $ 139.4 139.3 [1]
As Previously Reported [Member]    
Item Effected [Line Items]    
Other assets   225.2
Senior unsecured fixed rate notes   143.8
Restatement Of Revenue [Member]    
Item Effected [Line Items]    
Other assets   (4.5)
Senior unsecured fixed rate notes   $ (4.5)
[1] Derived from audited consolidated financial statements.
v3.5.0.2
Recently Issued Accounting Pronouncements - Effects of Retrospective Application of Guidance on Individual Financial Statement Line Items in Consolidated Statement of Cash Flows (Detail) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities:    
Amortization of debt issuance costs $ (0.1) $ (0.1)
As Previously Reported [Member]    
Cash flows from operating activities:    
Amortization of debt issuance costs   0.0
Restatement Of Revenue [Member]    
Cash flows from operating activities:    
Amortization of debt issuance costs   $ (0.1)
v3.5.0.2
Investments - Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments (Detail) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost $ 4,013.7 $ 4,031.5
Gross Unrealized Gains 209.8 189.6
Gross Unrealized Losses 65.4 105.4
Fair Value 4,158.1 4,115.7
Fixed Maturities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 2,870.4 2,971.0
Gross Unrealized Gains 71.0 43.1
Gross Unrealized Losses 48.8 86.8
Fair Value 2,892.6 2,927.3
Fixed Maturities [Member] | CLO [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost [1] 140.8 137.1
Gross Unrealized Gains [1] 0.2 0.2
Gross Unrealized Losses [1] 2.2 1.7
Fair Value [1] 138.8 135.6
Fixed Maturities [Member] | U.S. Governments [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 188.9 207.9
Gross Unrealized Gains 2.8 0.7
Gross Unrealized Losses 0.0 [2] 0.7 [3]
Fair Value 191.7 207.9
Fixed Maturities [Member] | Non-U.S. Governments [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 81.2 92.9
Gross Unrealized Gains 0.9 0.0
Gross Unrealized Losses [3] 0.1 1.2
Fair Value 82.0 91.7
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 390.2 467.6
Gross Unrealized Gains 24.5 20.7
Gross Unrealized Losses 0.2 0.3 [2]
Fair Value 414.5 488.0
Fixed Maturities [Member] | Credit-Financial [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 496.7 533.3
Gross Unrealized Gains 10.8 6.1
Gross Unrealized Losses 0.5 3.5
Fair Value 507.0 535.9
Fixed Maturities [Member] | Credit-Industrial [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 539.2 524.2
Gross Unrealized Gains 12.4 5.4
Gross Unrealized Losses 4.3 11.7
Fair Value 547.3 517.9
Fixed Maturities [Member] | Credit-Utility [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 149.8 168.7
Gross Unrealized Gains 4.8 0.9
Gross Unrealized Losses 4.0 13.4
Fair Value 150.6 156.2
Fixed Maturities [Member] | CMO/MBS-Agency [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost [4] 150.7 126.5
Gross Unrealized Gains [4] 5.8 5.0
Gross Unrealized Losses [4] 0.0 [2],[3] 0.5
Fair Value [4] 156.5 131.0
Fixed Maturities [Member] | CMO/MBS-Non Agency [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 5.9 11.0
Gross Unrealized Gains 0.5 0.6
Gross Unrealized Losses 0.0 [2] 0.1
Fair Value 6.4 11.5
Fixed Maturities [Member] | CMBS [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost [5] 208.9 182.2
Gross Unrealized Gains [5] 2.2 0.5
Gross Unrealized Losses [5] 0.4 1.5 [3]
Fair Value [5] 210.7 181.2
Fixed Maturities [Member] | ABS [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost [6] 116.0 111.4
Gross Unrealized Gains [6] 0.7 0.2
Gross Unrealized Losses [6] 0.3 [2] 0.7
Fair Value [6] 116.4 110.9
Fixed Maturities [Member] | Foreign Denominated: Governments [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 170.6 170.0
Gross Unrealized Gains 2.9 0.8
Gross Unrealized Losses 11.4 19.6
Fair Value 162.1 151.2
Fixed Maturities [Member] | Foreign Denominated: Credit [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 121.4 129.1
Gross Unrealized Gains 1.5 1.2
Gross Unrealized Losses 14.7 20.2
Fair Value 108.2 110.1
Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 15.5 24.1
Gross Unrealized Gains 0.0 0.1
Gross Unrealized Losses 2.7 2.3 [3]
Fair Value 12.8 21.9
Fixed Maturities [Member] | Foreign denominated: CLO [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 94.6 85.0
Gross Unrealized Gains 1.0 0.7
Gross Unrealized Losses 8.0 9.4
Fair Value 87.6 76.3
Equity Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 335.7 349.7
Gross Unrealized Gains 129.6 131.5
Gross Unrealized Losses 10.8 17.3
Fair Value 454.5 463.9
Other Investments [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 582.4 499.6
Gross Unrealized Gains 9.1 15.0
Gross Unrealized Losses 5.8 0.9
Fair Value 585.7 513.7
Short-Term Investments [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 225.2 211.2
Gross Unrealized Gains 0.1 0.0
Gross Unrealized Losses 0.0 [2] 0.4
Fair Value $ 225.3 $ 210.8
[1] Collateralized loan obligations (“CLO”).
[2] Unrealized losses less than one year are less than $0.1 million.
[3] Unrealized losses one year or greater are less than $0.1 million.
[4] Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”).
[5] Commercial mortgage-backed securities (“CMBS”).
[6] Asset-backed securities (“ABS”).
v3.5.0.2
Investments - Additional Information (Detail)
 3 Months Ended 6 Months Ended
Jun. 30, 2016
USD ($)
Security
Jun. 30, 2015
USD ($)
Jun. 30, 2016
USD ($)
Security
Jun. 30, 2015
USD ($)
Dec. 31, 2015
USD ($)
Schedule Of Investments [Line Items]          
Fair value of investments, assets managed on behalf of the trade capital providers $ 121,300,000   $ 121,300,000   $ 95,300,000
Number of securities in an unrealized loss position, total | Security 6,747   6,747    
Number of securities in an unrealized loss position for less than one year | Security 1,448   1,448    
Number of securities in an unrealized loss position for a period of one year or greater | Security 335   335    
Amortized Cost $ 4,013,700,000   $ 4,013,700,000   4,031,500,000
Fair Value 4,158,100,000   4,158,100,000   4,115,700,000
Reported loss expense reserve 24,700,000   24,700,000   29,300,000
Securities pledged to Lloyd's 204,800,000   204,800,000   202,500,000
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 36,600,000   36,600,000   34,900,000
Pledged assets separately reported, securities pledged under letters of credit facilities, at fair value 36,700,000   36,700,000   35,000,000
Fixed Maturities [Member]          
Schedule Of Investments [Line Items]          
Other-than-temporary losses 500,000 $ 500,000 1,100,000 $ 900,000  
Amortized Cost 2,870,400,000   2,870,400,000   2,971,000,000
Fair Value 2,892,600,000   2,892,600,000   2,927,300,000
Equity Securities [Member]          
Schedule Of Investments [Line Items]          
Other-than-temporary losses 4,400,000 $ 900,000 5,500,000 $ 1,000,000  
Amortized Cost 335,700,000   335,700,000   349,700,000
Fair Value 454,500,000   454,500,000   463,900,000
Deposit with Various U.S. Canadian Insurance and Other Agencies [Member] | United States [Member]          
Schedule Of Investments [Line Items]          
Amortized Cost 164,900,000   164,900,000   187,100,000
Fair Value $ 172,600,000   $ 172,600,000   $ 192,800,000
v3.5.0.2
Investments - Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity (Detail)
$ in Millions
Jun. 30, 2016
USD ($)
Investments Debt And Equity Securities [Abstract]  
Amortized Cost, Due in one year or less $ 277.6
Amortized Cost, Due after one year through five years 1,278.8
Amortized Cost, Due after five years through ten years 426.5
Amortized Cost, Thereafter 155.1
Amortized Cost, Structured securities 732.4
Amortized Cost, Total 2,870.4
Fair Value, Due in one year or less 269.8
Fair Value, Due after one year through five years 1,287.2
Fair Value, Due after five years through ten years 440.7
Fair Value, Thereafter 165.7
Fair Value, Structured securities 729.2
Fair Value, Total $ 2,892.6
v3.5.0.2
Investments - Schedule of Carrying Value and Unfunded Investment Commitments of Other Invested Assets Portfolio (Detail) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
Schedule Of Investments [Line Items]    
Carrying Value $ 4,158.1 $ 4,115.7 [1]
Hedge funds [Member]    
Schedule Of Investments [Line Items]    
Carrying Value 178.7 146.9
Unfunded Commitments 3.0 0.0
Private equity [Member]    
Schedule Of Investments [Line Items]    
Carrying Value 163.4 144.1
Unfunded Commitments 106.5 90.2
Long only funds [Member]    
Schedule Of Investments [Line Items]    
Carrying Value 242.8 211.0
Unfunded Commitments 0.0 0.0
Other Investments [Member]    
Schedule Of Investments [Line Items]    
Carrying Value 0.8 11.7
Unfunded Commitments 0.0 0.0
Other invested assets [Member]    
Schedule Of Investments [Line Items]    
Carrying Value 585.7 513.7
Unfunded Commitments $ 109.5 $ 90.2
[1] Derived from audited consolidated financial statements.
v3.5.0.2
Investments - Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments (Detail) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year $ 633.5 $ 1,779.4
Unrealized Losses, Less Than One Year 56.7 96.2
Fair Value, One Year or Greater 181.2 120.8
Unrealized Losses, One Year or Greater 8.7 9.2
Fair Value, Total 814.7 1,900.2
Unrealized Losses, Total 65.4 105.4
Fixed Maturities [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 562.8 1,661.7
Unrealized Losses, Less Than One Year 40.1 77.6
Fair Value, One Year or Greater 181.2 120.8
Unrealized Losses, One Year or Greater 8.7 9.2
Fair Value, Total 744.0 1,782.5
Unrealized Losses, Total 48.8 86.8
Fixed Maturities [Member] | CLO [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 64.8 103.5
Unrealized Losses, Less Than One Year 1.4 1.4
Fair Value, One Year or Greater 40.6 12.5
Unrealized Losses, One Year or Greater 0.8 0.3
Fair Value, Total 105.4 116.0
Unrealized Losses, Total [1] 2.2 1.7
Fixed Maturities [Member] | U.S. Governments [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 6.4 [2] 138.3 [3]
Unrealized Losses, Less Than One Year 0.0 [2] 0.7 [3]
Fair Value, One Year or Greater 0.0 [2] 0.4 [3]
Unrealized Losses, One Year or Greater 0.0 [2] 0.0 [3]
Fair Value, Total 6.4 [2] 138.7 [3]
Unrealized Losses, Total 0.0 [2] 0.7 [3]
Fixed Maturities [Member] | Non-U.S. Governments [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year [3] 11.8 80.2
Unrealized Losses, Less Than One Year [3] 0.1 1.2
Fair Value, One Year or Greater [3] 1.6 2.2
Unrealized Losses, One Year or Greater [3] 0.0 0.0
Fair Value, Total [3] 13.4 82.4
Unrealized Losses, Total [3] 0.1 1.2
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 0.2 9.3 [2]
Unrealized Losses, Less Than One Year 0.0 0.0 [2]
Fair Value, One Year or Greater 9.9 8.8 [2]
Unrealized Losses, One Year or Greater 0.2 0.3 [2]
Fair Value, Total 10.1 18.1 [2]
Unrealized Losses, Total 0.2 0.3 [2]
Fixed Maturities [Member] | Credit-Financial [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 42.8 308.7
Unrealized Losses, Less Than One Year 0.2 3.0
Fair Value, One Year or Greater 29.0 32.2
Unrealized Losses, One Year or Greater 0.3 0.5
Fair Value, Total 71.8 340.9
Unrealized Losses, Total 0.5 3.5
Fixed Maturities [Member] | Credit-Industrial [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 89.7 320.4
Unrealized Losses, Less Than One Year 2.2 9.6
Fair Value, One Year or Greater 43.7 28.7
Unrealized Losses, One Year or Greater 2.1 2.1
Fair Value, Total 133.4 349.1
Unrealized Losses, Total 4.3 11.7
Fixed Maturities [Member] | Credit-Utility [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 28.2 111.6
Unrealized Losses, Less Than One Year 0.9 8.5
Fair Value, One Year or Greater 22.1 16.4
Unrealized Losses, One Year or Greater 3.1 4.9
Fair Value, Total 50.3 128.0
Unrealized Losses, Total 4.0 13.4
Fixed Maturities [Member] | CMO/MBS-Agency [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 1.1 [2],[3] 26.9
Unrealized Losses, Less Than One Year 0.0 [2],[3] 0.2
Fair Value, One Year or Greater 4.2 [2],[3] 8.4
Unrealized Losses, One Year or Greater 0.0 [2],[3] 0.3
Fair Value, Total 5.3 [2],[3] 35.3
Unrealized Losses, Total [4] 0.0 [2],[3] 0.5
Fixed Maturities [Member] | CMO/MBS-Non Agency [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 0.1 [2] 7.0
Unrealized Losses, Less Than One Year 0.0 [2] 0.1
Fair Value, One Year or Greater 0.0 [2] 0.0
Unrealized Losses, One Year or Greater 0.0 [2] 0.0
Fair Value, Total 0.1 [2] 7.0
Unrealized Losses, Total 0.0 [2] 0.1
Fixed Maturities [Member] | CMBS [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 45.2 126.3 [3]
Unrealized Losses, Less Than One Year 0.2 1.5 [3]
Fair Value, One Year or Greater 10.2 3.0 [3]
Unrealized Losses, One Year or Greater 0.2 0.0 [3]
Fair Value, Total 55.4 129.3 [3]
Unrealized Losses, Total [5] 0.4 1.5 [3]
Fixed Maturities [Member] | ABS [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 15.3 [2] 91.8
Unrealized Losses, Less Than One Year 0.0 [2] 0.4
Fair Value, One Year or Greater 6.2 [2] 6.8
Unrealized Losses, One Year or Greater 0.3 [2] 0.3
Fair Value, Total 21.5 [2] 98.6
Unrealized Losses, Total [6] 0.3 [2] 0.7
Fixed Maturities [Member] | Foreign Denominated: Governments [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 88.1 137.1
Unrealized Losses, Less Than One Year 11.3 19.5
Fair Value, One Year or Greater 0.3 0.3
Unrealized Losses, One Year or Greater 0.1 0.1
Fair Value, Total 88.4 137.4
Unrealized Losses, Total 11.4 19.6
Fixed Maturities [Member] | Foreign Denominated: Credit [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 84.6 104.3
Unrealized Losses, Less Than One Year 14.6 20.0
Fair Value, One Year or Greater 0.8 0.5
Unrealized Losses, One Year or Greater 0.1 0.2
Fair Value, Total 85.4 104.8
Unrealized Losses, Total 14.7 20.2
Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 10.6 20.8 [3]
Unrealized Losses, Less Than One Year 2.1 2.3 [3]
Fair Value, One Year or Greater 2.2 0.1 [3]
Unrealized Losses, One Year or Greater 0.6 0.0 [3]
Fair Value, Total 12.8 20.9 [3]
Unrealized Losses, Total 2.7 2.3 [3]
Fixed Maturities [Member] | Foreign denominated: CLO [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 73.9 75.5
Unrealized Losses, Less Than One Year 7.1 9.2
Fair Value, One Year or Greater 10.4 0.5
Unrealized Losses, One Year or Greater 0.9 0.2
Fair Value, Total 84.3 76.0
Unrealized Losses, Total 8.0 9.4
Equity Securities [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 75.8 112.4
Unrealized Losses, Less Than One Year 10.8 17.3
Fair Value, One Year or Greater 0.0 0.0
Unrealized Losses, One Year or Greater 0.0 0.0
Fair Value, Total 75.8 112.4
Unrealized Losses, Total 10.8 17.3
Other Investments [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year (5.5) (0.5)
Unrealized Losses, Less Than One Year 5.8 0.9
Fair Value, One Year or Greater 0.0 0.0
Unrealized Losses, One Year or Greater 0.0 0.0
Fair Value, Total (5.5) (0.5)
Unrealized Losses, Total 5.8 0.9
Short-Term Investments [Member]    
Schedule Of Investments [Line Items]    
Fair Value, Less Than One Year 0.4 [2] 5.8
Unrealized Losses, Less Than One Year 0.0 [2] 0.4
Fair Value, One Year or Greater 0.0 [2] 0.0
Unrealized Losses, One Year or Greater 0.0 [2] 0.0
Fair Value, Total 0.4 [2] 5.8
Unrealized Losses, Total $ 0.0 [2] $ 0.4
[1] Collateralized loan obligations (“CLO”).
[2] Unrealized losses less than one year are less than $0.1 million.
[3] Unrealized losses one year or greater are less than $0.1 million.
[4] Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”).
[5] Commercial mortgage-backed securities (“CMBS”).
[6] Asset-backed securities (“ABS”).
v3.5.0.2
Investments - Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments (Parenthetical) (Detail) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
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
v3.5.0.2
Investments - Schedule of Company's Gross Realized Investment Gains (Losses) (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Schedule Of Investments [Line Items]        
Gross realized investment gains and other $ 26.9 $ 18.5 $ 63.0 $ 40.8
Gross realized investment and other losses (29.0) (15.8) (67.9) (27.0)
Net realized investment and other (losses) gains (2.1) 2.7 (4.9) 13.8
Fixed Maturities [Member]        
Schedule Of Investments [Line Items]        
Gross realized investment gains and other 4.6 3.5 11.0 7.6
Gross realized investment and other losses (6.5) (5.3) (14.9) (9.0)
Equity Securities [Member]        
Schedule Of Investments [Line Items]        
Gross realized investment gains and other 5.3 9.0 24.6 12.8
Gross realized investment and other losses (1.0) (0.4) (7.1) (1.1)
Other Investments [Member]        
Schedule Of Investments [Line Items]        
Gross realized investment gains and other 16.8 4.8 27.0 18.9
Gross realized investment and other losses (16.6) (8.4) (39.2) (13.6)
Short-Term Investments [Member]        
Schedule Of Investments [Line Items]        
Gross realized investment gains and other 0.2 1.1 0.4 1.1
Gross realized investment and other losses 0.0 (0.3) (0.1) (1.4)
Other Assets [Member]        
Schedule Of Investments [Line Items]        
Gross realized investment gains and other 0.0 0.0 0.0 0.0
Real Estate Holdings [Member]        
Schedule Of Investments [Line Items]        
Gross realized investment gains and other 0.0 0.1 0.0 0.4
Other-Than-Temporary Impairment Losses on Fixed Maturities [Member]        
Schedule Of Investments [Line Items]        
Gross realized investment and other losses (0.5) (0.5) (1.1) (0.9)
Other-Than-Temporary Impairment Losses on Equity Securities [Member]        
Schedule Of Investments [Line Items]        
Gross realized investment and other losses $ (4.4) $ (0.9) $ (5.5) $ (1.0)
v3.5.0.2
Investments - Schedule of Realized Gains (Losses) and Changes in Unrealized of Appreciation(Depreciation) (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Schedule Of Investments [Line Items]        
Realized before impairments $ 1.1 $ 2.3 $ (1.8) $ 9.4
Realized - impairments (3.2) (0.9) (4.3) (1.7)
Change in unrealized 26.5 (9.5) 53.8 (28.4)
Realized before impairments, Tax Effects (1.7) (1.8) (3.5) (6.3)
Realized - impairments, Tax Effects 1.7 0.5 2.3 0.2
Change in unrealized, Tax Effects (12.3) 10.3 (16.0) 13.2
Fixed Maturities [Member]        
Schedule Of Investments [Line Items]        
Realized before impairments (1.9) (1.8) (3.9) (1.4)
Realized - impairments (0.5) (0.5) (1.1) (0.9)
Change in unrealized 25.9 (6.0) 64.8 (18.3)
Equity Securities [Member]        
Schedule Of Investments [Line Items]        
Realized before impairments 4.3 8.6 17.5 11.7
Realized - impairments (4.4) (0.9) (5.5) (1.0)
Change in unrealized 12.9 (14.0) 4.0 (24.9)
Other Investments [Member]        
Schedule Of Investments [Line Items]        
Realized before impairments 0.2 (3.6) (12.2) 5.3
Realized - impairments 0.0 0.0 0.0 0.0
Change in unrealized 0.0 0.0 0.6 1.6
Other Assets [Member]        
Schedule Of Investments [Line Items]        
Realized before impairments 0.2 0.8 0.3 (0.3)
Realized - impairments 0.0 0.0 0.0 0.0
Change in unrealized 0.0 0.2 0.4 0.0
Real Estate Holdings and Other [Member]        
Schedule Of Investments [Line Items]        
Realized before impairments 0.0 0.1 0.0 0.4
Realized - impairments 0.0 0.0 0.0 0.0
Change in unrealized $ 0.0 $ 0.0 $ 0.0 $ 0.0
v3.5.0.2
Investments - Schedule of Fair Value of Foreign Currency Exchange Forward Contracts (Detail) - Foreign Currency Exchange Forward Contracts [Member] - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
Schedule Of Investments [Line Items]    
Fair value of foreign currency exchange forward contracts $ (4.1) $ 7.3
Currency Exposure [Member] | Canadian Dollar (CAD) [Member]    
Schedule Of Investments [Line Items]    
Fair value of foreign currency exchange forward contracts (5.1) 5.2
Investment Exposure [Member] | Euro (EUR) [Member]    
Schedule Of Investments [Line Items]    
Fair value of foreign currency exchange forward contracts 0.4 2.9
Total return strategy [Member]    
Schedule Of Investments [Line Items]    
Fair value of foreign currency exchange forward contracts $ 0.6 $ (0.8)
v3.5.0.2
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
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Schedule Of Investments [Line Items]        
Realized gains from foreign currency exchange forward contracts $ 16.4 $ 4.2 $ 25.9 $ 18.3
Realized losses from foreign currency exchange forward contracts (16.4) (7.0) (37.7) (10.2)
Net realized investment gains (losses) on foreign currency exchange forward contracts 0.0 (2.8) (11.8) 8.1
Global Catastrophe [Member]        
Schedule Of Investments [Line Items]        
Realized gains from foreign currency exchange forward contracts [1] 0.0 0.2 0.0 0.5
Realized losses from foreign currency exchange forward contracts [1] 0.0 (0.8) 0.0 (2.0)
Currency Exposure [Member] | Canadian Dollar (CAD) [Member]        
Schedule Of Investments [Line Items]        
Realized gains from foreign currency exchange forward contracts 4.6 3.6 7.4 11.1
Realized losses from foreign currency exchange forward contracts (7.0) (2.8) (15.5) (4.8)
Investment Exposure [Member] | Euro (EUR) [Member]        
Schedule Of Investments [Line Items]        
Realized gains from foreign currency exchange forward contracts 2.3 0.0 2.3 6.3
Realized losses from foreign currency exchange forward contracts 0.0 (2.4) (3.6) (2.4)
Investment Portfolio Return Strategy [Member]        
Schedule Of Investments [Line Items]        
Realized gains from foreign currency exchange forward contracts 0.0 0.4 0.3 0.4
Realized losses from foreign currency exchange forward contracts 0.0 (1.0) (0.2) (1.0)
Total return strategy [Member]        
Schedule Of Investments [Line Items]        
Realized gains from foreign currency exchange forward contracts 9.5 0.0 15.9 0.0
Realized losses from foreign currency exchange forward contracts $ (9.4) $ 0.0 $ (18.4) $ 0.0
[1] Global Catastrophe program ended 2015
v3.5.0.2
Investments - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value $ 4,158.1 $ 4,115.7
Fixed Maturities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 2,892.6 2,927.3
Fixed Maturities [Member] | CLO [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [1] 138.8 135.6
Fixed Maturities [Member] | U.S. Governments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 191.7 207.9
Fixed Maturities [Member] | Non-U.S. Governments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 82.0 91.7
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 414.5 488.0
Fixed Maturities [Member] | Credit-Financial [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 507.0 535.9
Fixed Maturities [Member] | Credit-Industrial [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 547.3 517.9
Fixed Maturities [Member] | Credit-Utility [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 150.6 156.2
Fixed Maturities [Member] | CMO/MBS-Agency [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [2] 156.5 131.0
Fixed Maturities [Member] | CMO/MBS-Non Agency [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 6.4 11.5
Fixed Maturities [Member] | CMBS [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [3] 210.7 181.2
Fixed Maturities [Member] | ABS [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [4] 116.4 110.9
Fixed Maturities [Member] | Foreign Denominated: Governments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 162.1 151.2
Fixed Maturities [Member] | Foreign Denominated: Credit [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 108.2 110.1
Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 12.8 21.9
Fixed Maturities [Member] | Foreign denominated: CLO [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 87.6 76.3
Equity Securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 454.5 463.9
Other Investments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 585.7 513.7
Short-Term Investments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 225.3 210.8
Fair Value, Measurements, Recurring [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 3,655.1 3,699.2
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] 806.5 811.6
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] 2,848.1 2,886.9
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value [7] 0.5 0.7
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 2,892.6 2,927.3
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CLO [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 138.8 135.6
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] 139.9 150.4
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] 2,752.7 2,776.9
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] 138.8 135.6
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 191.7 207.9
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] 139.9 150.4
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] 51.8 57.5
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 82.0 91.7
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] 82.0 91.7
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 414.5 488.0
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] 414.5 488.0
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 507.0 535.9
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] 507.0 535.9
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 547.3 517.9
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] 547.3 517.9
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 150.6 156.2
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] 150.6 156.2
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 156.5 131.0
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] 156.5 131.0
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 6.4 11.5
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] 6.4 11.5
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 210.7 181.2
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] 210.7 181.2
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 116.4 110.9
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] 116.4 110.9
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 162.1 151.2
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] 162.1 151.2
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 108.2 110.1
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] 108.2 110.1
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 12.8 21.9
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] 12.8 21.9
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 87.6 76.3
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] 87.6 76.3
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 454.5 463.9
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] 452.0 457.6
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] 2.0 5.6
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] 0.5 0.7
Fair Value, Measurements, Recurring [Member] | Other Investments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 82.7 97.2
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] 82.7 97.2
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 225.3 210.8
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] 214.6 203.6
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] 10.7 7.2
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
v3.5.0.2
Investments - Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3 (Detail) - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]    
Beginning balance $ 0.7 $ 0.9
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 0.0
Purchases 0.0 0.0
Issuances 0.0 0.0
Sales (0.2) (0.2)
Settlements 0.0 0.0
Ending balance 0.5 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 end of period 0.0 0.0
Equity Securities [Member]    
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]    
Beginning balance 0.7 0.9
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 0.0
Purchases 0.0 0.0
Issuances 0.0 0.0
Sales (0.2) (0.2)
Settlements 0.0 0.0
Ending balance 0.5 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 end of period $ 0.0 $ 0.0
v3.5.0.2
Reserves for Losses and Loss Adjustment Expenses - Reinsurance Recoverables (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
 [2]
Liability for Claims and Claims Adjustment Expense [Abstract]          
Net reserves beginning of the year     $ 2,133.3 $ 2,137.1  
Losses and LAE incurred during current calendar year, net of reinsurance:          
Current accident year     404.1 383.0  
Prior accident years     (15.9) (8.7)  
Losses and LAE incurred during calendar year, net of reinsurance $ 196.6 $ 190.6 388.2 374.3  
Current accident year     65.3 52.8  
Prior accident years     300.1 313.3  
Losses and LAE payments made during current calendar year, net of reinsurance:     365.4 366.1  
Change in participation interest [1]     (36.3) (1.2)  
Foreign exchange adjustments     4.4 (14.5)  
Net reserves - end of period 2,124.2 2,129.6 2,124.2 2,129.6  
Reinsurance recoverables on unpaid losses and LAE, end of period (1,057.7) (948.6) (1,057.7) (948.6)  
Reserves for losses and loss adjustment expenses $ 3,181.9 $ 3,078.2 $ 3,181.9 $ 3,078.2 $ 3,123.6
[1] Amount represents decreases in reserves due to change in syndicate participation
[2] Derived from audited consolidated financial statements.
v3.5.0.2
Reserves for Losses and Loss Adjustment Expenses - Impact from (Favorable) Unfavorable Development of Prior Accident Years' Loss and LAE Reserves on Each Reporting Segment (Detail) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items]    
Total favorable prior-year development $ (15.9) $ (8.7)
Excess and Surplus Lines [Member]    
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items]    
Total favorable prior-year development (6.3) (9.8)
Commercial Specialty [Member]    
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items]    
Total favorable prior-year development (5.6) 6.4
International Specialty [Member]    
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items]    
Total favorable prior-year development (5.8) (3.7)
Syndicate 1200 [Member]    
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items]    
Total favorable prior-year development (4.4) (2.5)
Run Off Lines [Member]    
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items]    
Total favorable prior-year development $ 6.2 $ 0.9
v3.5.0.2
Disclosures about Fair Value of Financial Instruments - Additional Information (Detail) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Premiums receivable $ 511.2 $ 404.5 [1]
Reinsurance recoverables 1,205.0 1,121.1 [1]
Premiums receivable, allowance for doubtful accounts 2.6 3.5
Over 90 Days [Member]    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Premiums receivable 12.3 10.0
Reinsurance recoverables 11.4 7.1
Reinsurance recoverables, allowance for doubtful accounts 1.8 2.2
Premiums receivables, secured by collateral 0.2 0.2
Reinsurance recoverables, secured by collateral $ 0.6 $ 0.7
[1] Derived from audited consolidated financial statements.
v3.5.0.2
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
Jun. 30, 2016
Dec. 31, 2015
Carrying Amount [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments $ 369.2 $ 367.2
Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 366.5 361.6
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 165.3 166.5
Senior Unsecured Fixed Rate Notes [Member] | Carrying Amount [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 139.4 139.3
Senior Unsecured Fixed Rate Notes [Member] | Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 146.5 141.8
Other Indebtedness [Member] | Carrying Amount [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 56.5 54.6
Other Indebtedness [Member] | Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 54.1 52.7
Other Indebtedness [Member] | Carrying Amount [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 0.6 0.6
Other Indebtedness [Member] | Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments $ 0.6 $ 0.6
v3.5.0.2
Shareholders Equity - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended
Aug. 02, 2016
Jun. 17, 2016
May 03, 2016
Jun. 15, 2015
May 05, 2015
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Class Of Stock [Line Items]                  
Stock dividend declared     10.00%     10.00%   10.00%  
Dividends declaration date     May 03, 2016   May 05, 2015        
Additional stock issued as dividend     2,735,542            
Dividends payable date     Jun. 15, 2016            
Dividend payable, date of record   Jun. 01, 2016 Jun. 01, 2016 Jun. 01, 2015          
Dividend declared per common share     $ 0.22   $ 0.18 $ 0.22 $ 0.18 $ 0.42 $ 0.36
Cash dividends paid - common shares, total   $ 6,900,000   $ 5,600,000          
Common shares repurchased on open market               718,595  
2016 Repurchase Authorization [Member]                  
Class Of Stock [Line Items]                  
Total number of shares authorized for purchase, Value     $ 150,000,000     $ 137,400,000   $ 137,400,000  
Common shares repurchased on open market               718,595  
Common shares repurchased on open market, total cost               $ 40,000,000  
Subsequent Event [Member]                  
Class Of Stock [Line Items]                  
Dividends declaration date Aug. 02, 2016                
Dividends payable date Aug. 29, 2016                
Dividend payable, date of record Aug. 15, 2016                
Dividend declared per common share $ 0.22                
v3.5.0.2
Shareholders Equity - Schedule of Repurchase of Shares (Detail)
$ / shares in Units, $ in Millions
 6 Months Ended
Jun. 30, 2016
USD ($)
$ / shares
shares
Equity Class Of Treasury Stock [Line Items]  
Common shares repurchased on open market | shares 718,595
Average Price of Shares Repurchased | $ / shares $ 55.67
Total Cost (in millions) | $ $ 40.0
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 Jan. 04, 2016
Common shares repurchased on open market | shares 266,538
Average Price of Shares Repurchased | $ / shares $ 55.59
Total Cost (in millions) | $ $ 14.8
Repurchase Authorization Year 2013
Trading Plan Purchase Period End Date Feb. 11, 2016
10b5-1 Trading Plan Initiated In 03/16/2016 [Member]  
Equity Class Of Treasury Stock [Line Items]  
Date Trading Plan Initiated Mar. 16, 2016
Trading Plan Purchase Period Start Date Mar. 16, 2016
Common shares repurchased on open market | shares 162,893
Average Price of Shares Repurchased | $ / shares $ 55.62
Total Cost (in millions) | $ $ 9.1
Repurchase Authorization Year 2013
Trading Plan Purchase Period End Date May 02, 2016
10b5-1 Trading Plan Initiated In 06/14/2016 [Member]  
Equity Class Of Treasury Stock [Line Items]  
Date Trading Plan Initiated Jun. 16, 2016
Trading Plan Purchase Period Start Date Jun. 24, 2016
Common shares repurchased on open market | shares 14,774
Average Price of Shares Repurchased | $ / shares $ 49.78
Total Cost (in millions) | $ $ 0.7
Repurchase Authorization Year 2016
Trading Plan Purchase Period End Date Jun. 28, 2016
Open Market Repurchase Authorization Two Thousand And Sixteen [Member]  
Equity Class Of Treasury Stock [Line Items]  
Trading Plan Purchase Period Start Date May 03, 2016
Common shares repurchased on open market | shares 209,926
Average Price of Shares Repurchased | $ / shares $ 56.70
Total Cost (in millions) | $ $ 11.9
Repurchase Authorization Year 2016
Trading Plan Purchase Period End Date Jun. 30, 2016
Open Market Repurchase Authorization Two Thousand And Thirteen [Member]  
Equity Class Of Treasury Stock [Line Items]  
Trading Plan Purchase Period Start Date Jan. 01, 2016
Common shares repurchased on open market | shares 64,464
Average Price of Shares Repurchased | $ / shares $ 54.14
Total Cost (in millions) | $ $ 3.5
Repurchase Authorization Year 2013
Trading Plan Purchase Period End Date May 02, 2016
v3.5.0.2
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 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Earnings Per Share [Abstract]        
Net income $ 30.9 $ 27.9 $ 58.6 $ 86.7
Weighted average common shares outstanding - basic 30,187,592 30,742,865 30,333,417 30,841,708
Effect of dilutive securities:        
Equity compensation awards 622,564 573,939 637,772 588,198
Weighted average common shares outstanding - diluted 30,810,156 31,316,804 30,971,189 31,429,906
Net income per common share - basic $ 1.03 $ 0.91 $ 1.93 $ 2.81
Net income per common share - diluted $ 1.00 $ 0.89 $ 1.89 $ 2.76
v3.5.0.2
Net Income Per Common Share - Additional Information (Detail) - shares
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
 [1]
Earnings Per Share [Abstract]          
Treasury shares, shares 9,900,239 9,095,585 9,900,239 9,095,585 9,181,644
Antidilutive securities excluded from computation of diluted net income per share, shares 0 484 0 484  
[1] Derived from audited consolidated financial statements.
v3.5.0.2
Supplemental Cash Flow Information - Additional Information (Detail) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Income Taxes Paid Net [Abstract]    
Income taxes paid $ 1.3 $ 10.5
Income taxes recovered $ 0.3 $ 11.5
v3.5.0.2
Supplemental Cash Flow Information - Schedule of Interest Paid (Detail) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Supplemental Cash Flow [Line Items]    
Total interest paid $ 9.7 $ 9.4
Senior Unsecured Fixed Rate Notes [Member]    
Supplemental Cash Flow [Line Items]    
Total interest paid 4.7 4.7
Junior Subordinated Debentures [Member]    
Supplemental Cash Flow [Line Items]    
Total interest paid 3.8 3.5
Other Indebtedness [Member]    
Supplemental Cash Flow [Line Items]    
Total interest paid $ 1.2 $ 1.2
v3.5.0.2
Share-based Compensation - Additional Information (Detail)
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
May 03, 2016
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  
Stock dividend declared 10.00%   10.00%
Percentage increase in number of awards outstanding due to stock dividend 10.00%    
Reduction in exercise price of awards outstanding due to stock dividend 9.09%    
v3.5.0.2
Share-based Compensation - Fair Value Assumptions (Detail)
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]    
Risk-free rate of return 1.00% 1.70%
Expected dividend yields 1.70% 1.57%
Expected award life (years) 4 years 6 months 15 days 4 years 7 months 13 days
Expected volatility 19.70% 21.10%
v3.5.0.2
Share-Based Compensation - 2014 Long-Term Incentive Plan - Additional Information (Detail) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended
May 31, 2014
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Nov. 30, 2007
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation arrangement by share-based payment award, award vesting period, years       5 years 5 years  
Restricted Share [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation arrangement by share-based payment award, compensation expense   $ 1.8 $ 1.5 $ 3.5 $ 3.0  
Employee service share-based compensation, unrecognized compensation costs on non-vested awards   21.7   $ 21.7    
Restricted Share [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       2 years    
Restricted Share [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    
Stock-Settled SARs Activity [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation arrangement by share-based payment award, compensation expense   1.2 0.3 $ 2.6 1.0  
Employee service share-based compensation, unrecognized compensation costs on non-vested awards   10.9   $ 10.9    
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]            
Share-based compensation arrangement by share-based payment award, compensation expense     $ 8.5   $ 11.3  
Employee service share-based compensation, unrecognized compensation costs on non-vested awards   0.7   $ 0.7    
Share-based compensation arrangement by share-based payment award, compensation expense recouped   $ 0.2   $ 0.5    
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 1,460,000          
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    
v3.5.0.2
Share-based Compensation - Summary of Restricted Share Activity (Detail) - Restricted Stock Units (RSUs) [Member]
 6 Months Ended
Jun. 30, 2016
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares, Outstanding at January 1, 2016 | shares 514,742
Granted, Shares | shares 251,302
Vested and issued, Shares | shares (70,534)
Expired or forfeited, Shares | shares (10,016)
Shares, Outstanding at June 30, 2016 | shares 685,494
Weighted-Average Grant Date Fair Value, Outstanding at January 1, 2016 | $ / shares $ 40.51
Granted, Weighted-Average Grant Date Fair Value | $ / shares 55.33
Vested and issued, Weighted-Average Grant Date Fair Value | $ / shares 35.90
Expired or forfeited, Weighted-Average Grant Date Fair Value | $ / shares 45.90
Weighted-Average Grant Date Fair Value, Outstanding at June 30, 2016 | $ / shares $ 46.34
v3.5.0.2
Share-based Compensation - Summary of Stock-Settled SARs Activity (Detail) - Stock-Settled SARs Activity [Member]
 6 Months Ended
Jun. 30, 2016
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares, Outstanding at January 1, 2016 | shares 1,438,146
Granted, Shares | shares 542
Converted from cash-settled SARs | shares 944,046
Exercised, Shares | shares (103,150)
Expired or forfeited, Shares | shares (96,929)
Shares, Outstanding at June 30, 2016 | shares 2,182,655
Weighted-Average Exercise Price, Outstanding at January 1, 2016 | $ / shares $ 32.49
Granted, Weighted-Average Exercise Price | $ / shares 40.38
Converted from cash-settled SARs | $ / shares 45.31
Exercised, Weighted-Average Exercise Price | $ / shares 28.56
Expired or forfeited, Weighted-Average Exercise Price | $ / shares 46.63
Weighted-Average Exercise Price, Outstanding at June 30, 2016 | $ / shares $ 37.59
v3.5.0.2
Share-based Compensation - Summary of Cash-Settled SARs Activity (Detail) - Cash-Settled SARs Activity [Member]
 6 Months Ended
Jun. 30, 2016
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares, Outstanding at January 1, 2016 | shares 2,220,560
Granted, Shares | shares 540
Converted to stock-settled SARs | shares (864,036) [1]
Exercised, Shares | shares (358,698)
Expired or forfeited, Shares | shares (79,576)
Shares, Outstanding at June 30, 2016 | shares 918,790
Weighted-Average Exercise Price, Outstanding at January 1, 2016 | $ / shares $ 39.06
Granted, Weighted-Average Exercise Price | $ / shares 40.38
Converted to stock-settled SARs | $ / shares 45.33 [1]
Exercised, Weighted-Average Exercise Price | $ / shares 33.82
Expired or forfeited, Weighted-Average Exercise Price | $ / shares 43.60
Weighted-Average Exercise Price, Outstanding at June 30, 2016 | $ / shares $ 34.83
[1] The converted shares were not adjusted for the 10% stock dividend because the conversion occurred prior to the stock dividend record date.
v3.5.0.2
Underwriting, Acquisition and Insurance Expenses - Underwriting, Acquisition and Insurance Expenses (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Underwriting Acquisition And Insurance Expenses [Abstract]        
Commissions $ 62.1 $ 67.2 $ 119.2 $ 125.9
General expenses 71.1 79.7 141.7 152.6
Premium taxes, boards and bureaus 6.3 0.0 12.9 0.6
Underwriting, acquisition and insurance expenses, total 139.5 146.9 273.8 279.1
Net deferral of policy acquisition costs (6.5) (7.4) (8.2) (10.0)
Total underwriting, acquisition and insurance expenses $ 133.0 $ 139.5 $ 265.6 $ 269.1
v3.5.0.2
Underwriting, Acquisition and Insurance Expenses - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Underwriting Acquisition And Insurance Expenses [Abstract]        
Share-based payments expense $ 2.6 $ 7.7 $ 5.6 $ 12.9
v3.5.0.2
Income Taxes - Income Tax Provision (Benefit) (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Income Tax Disclosure [Abstract]        
Current tax provision $ 6.5 $ 9.0 $ 8.0 $ 8.8
Future tax deductions 2.0 (2.9) 4.9 2.6
Valuation allowance change 0.2 0.7 1.2 (1.0)
Income tax provision $ 8.7 $ 6.8 $ 14.1 $ 10.4
v3.5.0.2
Income Taxes - Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 39.6 $ 34.7 $ 72.7 $ 97.1
Bermuda [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 22.1 $ 18.3 $ 44.1 $ 44.0
Effective Tax Rate 0.00% 0.00% 0.00% 0.00%
United States [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 26.5 $ 20.2 $ 49.8 $ 48.7
Effective Tax Rate 30.90% 27.00% 27.50% 23.00%
United Kingdom [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ (9.8) $ (2.9) $ (22.1) $ 7.2
Effective Tax Rate (5.70%) (46.90%) (1.70%) (12.00%)
Belgium [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 0.0 [1] $ 0.1 $ 0.0 [1] $ (0.1)
Effective Tax Rate 16.30% 16.50% 32.00% (24.20%)
Brazil [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 0.8 $ (1.2) $ 0.7 $ (3.0)
Effective Tax Rate 0.00% 0.00% 0.00% 0.00%
United Arab Emirates [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 0.0 [1] $ 0.1 $ 0.0 [1] $ 0.1
Effective Tax Rate 0.00% 0.00% 0.00% 0.00%
Ireland [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ (0.1) $ (0.1) $ (0.1) $ (0.1)
Effective Tax Rate 0.00% 0.00% 0.00% 0.00%
Malta [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 0.1 $ 0.2 $ 0.3 $ 0.3
Effective Tax Rate 0.00% 0.00% 0.00% 0.00%
Switzerland [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) [1] $ 0.0 $ 0.0 $ 0.0 $ 0.0
Effective Tax Rate 22.80% (36.70%) 21.10% (18.60%)
[1] Pre-tax income for the respective year was less than $0.1 million.
v3.5.0.2
Income Taxes - Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates (Parenthetical) (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 39.6 $ 34.7 $ 72.7 $ 97.1
Belgium [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) 0.0 [1] 0.1 0.0 [1] (0.1)
United Arab Emirates [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) 0.0 [1] 0.1 0.0 [1] 0.1
Switzerland [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) [1] 0.0 0.0 0.0 0.0
Maximum [Member] | Belgium [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) 0.1   0.1  
Maximum [Member] | United Arab Emirates [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) 0.1   0.1  
Maximum [Member] | Switzerland [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 0.1 $ 0.1 $ 0.1 $ 0.1
[1] Pre-tax income for the respective year was less than $0.1 million.
v3.5.0.2
Income Taxes - Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Income Tax Disclosure [Abstract]        
Income tax provision at expected rate $ 7.6 $ 6.2 $ 13.4 $ 17.4
Tax-exempt interest (0.9) (1.0) (1.8) (1.9)
Dividends received deduction (0.8) (0.6) (1.3) (1.2)
Valuation allowance change 0.2 0.7 1.2 (1.0)
Other permanent adjustments, net 0.0 0.0 0.2 0.2
Adjustment for annualized rate 0.9 0.3 (0.6) (0.2)
United States state tax benefit 0.0 0.0 0.0 (2.5)
Other foreign adjustments (0.6) 0.4 (0.6) 0.1
Foreign tax credit utilization 0.0 0.0 0.0 (1.2)
Deferred tax rate reduction 0.0 0.0 (0.3) 0.0
Foreign exchange adjustments 2.1 0.6 3.6 0.4
Foreign withholding taxes 0.2 0.2 0.3 0.3
Income tax provision 8.7 6.8 14.1 10.4
Income tax provision (benefit) - Foreign 0.6 1.4 0.4 (0.8)
Income tax provision - United States, Federal 7.9 5.2 13.5 14.7
Income tax benefit - United States, State 0.0 0.0 0.0 (3.8)
Foreign withholding tax - United States $ 0.2 $ 0.2 $ 0.2 $ 0.3
v3.5.0.2
Income Taxes - Additional Information (Detail) - USD ($)
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Income Taxes Disclosure [Line Items]    
Net operating losses carryback period 2 years  
Capital losses carryback period 3 years  
Total net deferred tax liabilities $ 21,100,000  
Net operating loss carryforward 16,300,000  
Loss carryforwards per year 2,800,000  
Valuation allowance 24,000,000  
Unrecognized tax benefits 0 $ 0
December 31, 2025 [Member]    
Income Taxes Disclosure [Line Items]    
Loss carryforwards, amounts expiring if not utilized 14,800,000  
December 31, 2027 [Member]    
Income Taxes Disclosure [Line Items]    
Loss carryforwards, amounts expiring if not utilized 1,500,000  
Brazil [Member]    
Income Taxes Disclosure [Line Items]    
Valuation allowance 7,800,000  
Valuation Allowance Increased 1,700,000  
Malta [Member]    
Income Taxes Disclosure [Line Items]    
Valuation allowance 1,800,000  
PXRE Reinsurance Company [Member]    
Income Taxes Disclosure [Line Items]    
Valuation allowance 14,400,000  
Valuation Allowance Reduced 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  
v3.5.0.2
Commitments and Contingencies - Additional Information (Detail)
$ in Millions
 6 Months Ended
Jun. 30, 2016
USD ($)
Commitments And Contingencies [Line Items]  
Contractual commitments related to its limited partnership investments $ 109.5
Maximum [Member]  
Commitments And Contingencies [Line Items]  
Contractual commitments period 13 years
v3.5.0.2
Segment Information - Additional Information (Detail)
$ in Millions
 6 Months Ended
Jun. 30, 2016
USD ($)
Segment
Dec. 31, 2015
USD ($)
Segment Reporting [Abstract]    
Number of reportable segments | Segment 4  
Assets associated with trade capital providers | $ $ 527.7 $ 377.1
v3.5.0.2
Segment Information - Revenue and Income (Loss) Before Income Taxes for Each Segment (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Segment Reporting Information [Line Items]        
Earned premiums $ 344.9 $ 346.0 $ 689.8 $ 680.6
Net investment income (loss) 35.7 24.4 56.9 50.1
Fee and other income 5.8 4.1 12.6 8.7
Net realized investment and other (losses) gains (2.1) 2.7 (4.9) 13.8
Total revenue 384.3 377.2 754.4 753.2
Income (loss) before income taxes 39.6 34.7 72.7 97.1
Corporate and Other [Member]        
Segment Reporting Information [Line Items]        
Net investment income (loss) 1.5 1.0 0.6 6.6
Income (loss) before income taxes (15.8) (16.8) (31.1) (15.3)
Operating Segments [Members]        
Segment Reporting Information [Line Items]        
Income (loss) before income taxes 57.5 48.8 108.7 98.6
Excess and Surplus Lines [Member]        
Segment Reporting Information [Line Items]        
Earned premiums 121.3 118.4 241.1 230.3
Net investment income (loss) 13.7 9.4 22.4 17.4
Excess and Surplus Lines [Member] | Operating Segments [Members]        
Segment Reporting Information [Line Items]        
Income (loss) before income taxes 25.0 20.7 46.2 42.1
Commercial Specialty [Member]        
Segment Reporting Information [Line Items]        
Earned premiums 85.5 84.4 172.3 168.2
Net investment income (loss) 8.0 5.7 13.1 10.7
Commercial Specialty [Member] | Operating Segments [Members]        
Segment Reporting Information [Line Items]        
Income (loss) before income taxes 20.4 9.5 34.1 16.6
International Specialty [Member]        
Segment Reporting Information [Line Items]        
Earned premiums 39.7 37.2 77.5 73.4
Net investment income (loss) 5.0 3.3 8.3 6.2
International Specialty [Member] | Operating Segments [Members]        
Segment Reporting Information [Line Items]        
Income (loss) before income taxes 6.9 9.1 17.2 18.0
Syndicate 1200 [Member]        
Segment Reporting Information [Line Items]        
Earned premiums 98.2 105.6 198.7 208.6
Net investment income (loss) 4.1 2.6 6.9 4.8
Syndicate 1200 [Member] | Operating Segments [Members]        
Segment Reporting Information [Line Items]        
Income (loss) before income taxes 8.4 10.3 15.8 21.5
Run Off Lines [Member]        
Segment Reporting Information [Line Items]        
Earned premiums 0.2 0.4 0.2 0.1
Net investment income (loss) 3.4 2.4 5.6 4.4
Run Off Lines [Member] | Operating Segments [Members]        
Segment Reporting Information [Line Items]        
Income (loss) before income taxes $ (3.2) $ (0.8) $ (4.6) $ 0.4
v3.5.0.2
Segment Information - Schedule of Earned Premiums by Geographic Location (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total earned premiums $ 344.9 $ 346.0 $ 689.8 $ 680.6
Bermuda [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total earned premiums 29.0 26.1 57.1 50.0
Brazil [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total earned premiums 10.0 11.9 19.2 24.4
Malta [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total earned premiums 0.5 0.4 1.0 0.9
United Kingdom [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total earned premiums 98.1 104.5 198.7 206.4
United States [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total earned premiums $ 207.3 $ 203.1 $ 413.8 $ 398.9
v3.5.0.2
Segment Information - Identifiable Assets (Detail) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets $ 6,960.8 $ 6,625.6 [1]
Excess and Surplus Lines [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets 2,233.2 2,174.8
Commercial Specialty [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets 1,532.5 1,511.7
International Specialty [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets 979.7 877.2
Syndicate 1200 [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets 1,322.3 1,216.5
Run Off Lines [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets 541.8 558.4
Corporate and Other [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets $ 351.3 $ 287.0
[1] Derived from audited consolidated financial statements.
v3.5.0.2
Senior Unsecured Fixed Rate Notes - Additional Information (Detail) - USD ($)
 1 Months Ended 6 Months Ended
Sep. 30, 2012
Jun. 30, 2016
Dec. 31, 2015
Schedule Of Equity Method Investments [Line Items]      
Principal amount of senior note   $ 143,800,000 $ 143,800,000
Senior Unsecured Fixed Rate Notes [Member]      
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%    
v3.5.0.2
Senior Unsecured Fixed Rate Notes - Schedule Of Unamortized Debt Issuance Costs Deducted From Carrying Value Of Debt Liability (Detail) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
Debt Disclosure [Abstract]    
Principal $ 143.8 $ 143.8
Less: unamortized debt issuance costs (4.4) (4.5)
Senior unsecured fixed rate notes, less unamortized debt issuance costs $ 139.4 $ 139.3 [1]
[1] Derived from audited consolidated financial statements.
v3.5.0.2
Senior Unsecured Fixed Rate Notes - Condensed Consolidating Balance Sheet (Detail) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2015
Dec. 31, 2014
Assets        
Investments $ 4,158.1 $ 4,115.7 [1]    
Cash 120.6 121.7 [1] $ 106.5 $ 81.0
Accrued investment income 20.7 21.6 [1]    
Premiums receivable 511.2 404.5 [1]    
Reinsurance recoverables 1,205.0 1,121.1 [1]    
Goodwill and other intangible assets, net 222.7 225.5    
Current income taxes receivable, net 2.9 11.6 [1]    
Deferred acquisition costs, net 144.6 132.4 [1]    
Ceded unearned premiums 312.2 250.8 [1]    
Other assets 262.8 220.7 [1]    
Intercompany note receivable 0.0 0.0    
Investments in subsidiaries 0.0 0.0    
Total assets 6,960.8 6,625.6 [1]    
Liabilities and Shareholders' Equity        
Reserves for losses and loss adjustment expenses 3,181.9 3,123.6 [1] 3,078.2  
Unearned premiums 956.5 886.7 [1]    
Funds held and ceded reinsurance payable, net 528.7 390.0    
Long-term debt 369.2 367.2    
Deferred tax liabilities, net 45.1 23.6 [1]    
Accrued underwriting expenses and other liabilities 139.1 166.4    
Due to (from) affiliates 0.0 0.0    
Total liabilities 5,220.5 4,957.5 [1]    
Total shareholders' equity 1,740.3 1,668.1 [1]    
Total liabilities and shareholders' equity 6,960.8 6,625.6 [1]    
Argo Group International Holdings, Ltd (Parent Guarantor) [Member]        
Assets        
Investments (2.1) 6.2    
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 10.7 8.2    
Intercompany note receivable 0.0 0.0    
Investments in subsidiaries 1,804.0 1,715.9    
Total assets 1,812.6 1,730.3    
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 28.3 28.4    
Deferred tax liabilities, net 0.0 0.0    
Accrued underwriting expenses and other liabilities 12.3 16.3    
Due to (from) affiliates 31.7 17.5    
Total liabilities 72.3 62.2    
Total shareholders' equity 1,740.3 1,668.1    
Total liabilities and shareholders' equity 1,812.6 1,730.3    
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member]        
Assets        
Investments 2,770.9 2,761.0    
Cash 82.9 88.8 72.4 49.3
Accrued investment income 15.5 16.4    
Premiums receivable 211.0 166.4    
Reinsurance recoverables 1,251.3 1,212.2    
Goodwill and other intangible assets, net 128.4 129.8    
Current income taxes receivable, net 2.0 4.7    
Deferred acquisition costs, net 60.4 58.2    
Ceded unearned premiums 154.1 125.8    
Other assets 162.8 151.7    
Intercompany note receivable 50.2 49.8    
Investments in subsidiaries 0.0 0.0    
Total assets 4,889.5 4,764.8    
Liabilities and Shareholders' Equity        
Reserves for losses and loss adjustment expenses 2,209.2 2,194.1    
Unearned premiums 529.2 501.5    
Funds held and ceded reinsurance payable, net 745.6 702.6    
Long-term debt 284.3 284.2    
Deferred tax liabilities, net 37.4 11.9    
Accrued underwriting expenses and other liabilities 79.5 95.4    
Due to (from) affiliates 1.6 2.3    
Total liabilities 3,886.8 3,792.0    
Total shareholders' equity 1,002.7 972.8    
Total liabilities and shareholders' equity 4,889.5 4,764.8    
Other Subsidiaries and Eliminations [Member]        
Assets        
Investments [2] 1,389.3 1,348.5    
Cash [2] 37.7 32.9 34.1 31.7
Accrued investment income [2] 5.2 5.2    
Premiums receivable [2] 300.2 238.1    
Reinsurance recoverables [2] (46.3) (91.1)    
Goodwill and other intangible assets, net [2] 94.3 95.7    
Current income taxes receivable, net [2] 0.9 6.9    
Deferred acquisition costs, net [2] 84.2 74.2    
Ceded unearned premiums [2] 158.1 125.0    
Other assets [2] 89.3 60.8    
Intercompany note receivable [2] (50.2) (49.8)    
Investments in subsidiaries [2] 0.0 0.0    
Total assets [2] 2,062.7 1,846.4    
Liabilities and Shareholders' Equity        
Reserves for losses and loss adjustment expenses [2] 972.7 929.5    
Unearned premiums [2] 427.3 385.2    
Funds held and ceded reinsurance payable, net [2] (216.9) (312.6)    
Long-term debt [2] 56.6 54.6    
Deferred tax liabilities, net [2] 7.7 11.7    
Accrued underwriting expenses and other liabilities [2] 47.3 54.7    
Due to (from) affiliates [2] (1.6) (2.3)    
Total liabilities [2] 1,293.1 1,120.8    
Total shareholders' equity [2] 769.6 725.6    
Total liabilities and shareholders' equity [2] 2,062.7 1,846.4    
Consolidating Adjustments [Member]        
Assets        
Investments [3] 0.0 0.0    
Cash [3] 0.0 0.0 $ 0.0 $ 0.0
Accrued investment income [3] 0.0 0.0    
Premiums receivable [3] 0.0 0.0    
Reinsurance recoverables [3] 0.0 0.0    
Goodwill and other intangible assets, net [3] 0.0 0.0    
Current income taxes receivable, net [3] 0.0 0.0    
Deferred acquisition costs, net [3] 0.0 0.0    
Ceded unearned premiums [3] 0.0 0.0    
Other assets [3] 0.0 0.0    
Intercompany note receivable [3] 0.0 0.0    
Investments in subsidiaries [3] (1,804.0) (1,715.9)    
Total assets [3] (1,804.0) (1,715.9)    
Liabilities and Shareholders' Equity        
Reserves for losses and loss adjustment expenses [3] 0.0 0.0    
Unearned premiums [3] 0.0 0.0    
Funds held and ceded reinsurance payable, net [3] 0.0 0.0    
Long-term debt [3] 0.0 0.0    
Deferred tax liabilities, net [3] 0.0 0.0    
Accrued underwriting expenses and other liabilities [3] 0.0 0.0    
Due to (from) affiliates [3] (31.7) (17.5)    
Total liabilities [3] (31.7) (17.5)    
Total shareholders' equity [3] (1,772.3) (1,698.4)    
Total liabilities and shareholders' equity [3] $ (1,804.0) $ (1,715.9)    
[1] Derived from audited consolidated financial statements.
[2] Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
[3] Includes all Argo Group parent company eliminations.
v3.5.0.2
Senior Unsecured Fixed Rate Notes - Condensed Consolidating Statement of Income (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Premiums and other revenue:        
Earned premiums $ 344.9 $ 346.0 $ 689.8 $ 680.6
Net investment income (expense) 35.7 24.4 56.9 50.1
Fee and other income 5.8 4.1 12.6 8.7
Net realized investment and other (losses) gains (2.1) 2.7 (4.9) 13.8
Total revenue 384.3 377.2 754.4 753.2
Expenses:        
Losses and loss adjustment expenses 196.6 190.6 388.2 374.3
Underwriting, acquisition and insurance expenses 133.0 139.5 265.6 269.1
Interest expense 4.9 4.6 9.7 9.5
Fee and other expense 5.7 4.8 12.2 9.8
Foreign currency exchange loss (gain) 4.5 3.0 6.0 (6.6)
Total expenses 344.7 342.5 681.7 656.1
Impairment of intangible assets     0.0 0.0
Income before income taxes 39.6 34.7 72.7 97.1
Provision for income taxes 8.7 6.8 14.1 10.4
Net income before equity in earnings of subsidiaries 30.9 27.9 58.6 86.7
Equity in undistributed earnings of subsidiaries 0.0 0.0 0.0 0.0
Net income 30.9 27.9 58.6 86.7
Argo Group International Holdings, Ltd (Parent Guarantor) [Member]        
Premiums and other revenue:        
Earned premiums 0.0 0.0 0.0 0.0
Net investment income (expense) (0.5) (0.3) (1.1) (0.5)
Fee and other income 0.0 0.0 0.0 0.0
Net realized investment and other (losses) gains 0.2 2.0 0.2 2.0
Total revenue (0.3) 1.7 (0.9) 1.5
Expenses:        
Losses and loss adjustment expenses 0.0 0.0 0.0 0.0
Underwriting, acquisition and insurance expenses 1.1 4.8 6.3 9.5
Interest expense 0.4 0.2 0.7 0.7
Fee and other expense 0.0 0.0 0.0 0.0
Foreign currency exchange loss (gain) 0.0 0.0 0.0 0.0
Total expenses 1.5 5.0 7.0 10.2
Impairment of intangible assets     0.0 0.0
Income before income taxes (1.8) (3.3) (7.9) (8.7)
Provision for income taxes 0.0 0.0 0.0 0.0
Net income before equity in earnings of subsidiaries (1.8) (3.3) (7.9) (8.7)
Equity in undistributed earnings of subsidiaries 32.7 31.2 66.5 95.4
Net income 30.9 27.9 58.6 86.7
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member]        
Premiums and other revenue:        
Earned premiums 120.2 118.8 240.1 253.9
Net investment income (expense) 27.5 16.6 40.1 36.0
Fee and other income 4.2 2.8 9.4 6.4
Net realized investment and other (losses) gains 1.9 4.8 13.1 15.8
Total revenue 153.8 143.0 302.7 312.1
Expenses:        
Losses and loss adjustment expenses 69.1 64.4 137.4 144.6
Underwriting, acquisition and insurance expenses 49.0 49.6 96.6 101.5
Interest expense 3.9 3.8 7.8 7.6
Fee and other expense 5.0 4.4 11.2 8.8
Foreign currency exchange loss (gain) (0.1) 0.1 (0.1) 0.9
Total expenses 126.9 122.3 252.9 263.4
Impairment of intangible assets     0.0 0.0
Income before income taxes 26.9 20.7 49.8 48.7
Provision for income taxes 8.3 5.4 13.7 11.2
Net income before equity in earnings of subsidiaries 18.6 15.3 36.1 37.5
Equity in undistributed earnings of subsidiaries 0.0 0.0 0.0 0.0
Net income 18.6 15.3 36.1 37.5
Other Subsidiaries and Eliminations [Member]        
Premiums and other revenue:        
Earned premiums 224.7 [1] 227.2 [1] 449.7 [2] 426.7 [2]
Net investment income (expense) 8.7 [1] 8.1 [1] 17.9 [2] 14.6 [2]
Fee and other income 1.6 [1] 1.3 [1] 3.2 [2] 2.3 [2]
Net realized investment and other (losses) gains (4.2) [1] (2.1) [1] (18.2) [2] (2.0) [2]
Total revenue 230.8 [1] 234.5 [1] 452.6 [2] 441.6 [2]
Expenses:        
Losses and loss adjustment expenses 127.5 [1] 126.2 [1] 250.8 [2] 229.7 [2]
Underwriting, acquisition and insurance expenses 82.9 [1] 85.1 [1] 162.7 [2] 158.1 [2]
Interest expense 0.6 [1] 0.6 [1] 1.2 [2] 1.2 [2]
Fee and other expense 0.7 [1] 0.4 [1] 1.0 [2] 1.0 [2]
Foreign currency exchange loss (gain) 4.6 [1] 2.9 [1] 6.1 [2] (7.5) [2]
Total expenses 216.3 [1] 215.2 [1] 421.8 [2] 382.5 [2]
Impairment of intangible assets [2]     0.0 0.0
Income before income taxes 14.5 [1] 19.3 [1] 30.8 [2] 59.1 [2]
Provision for income taxes 0.4 [1] 1.4 [1] 0.4 [2] (0.8) [2]
Net income before equity in earnings of subsidiaries 14.1 [1] 17.9 [1] 30.4 [2] 59.9 [2]
Equity in undistributed earnings of subsidiaries 0.0 [1] 0.0 [1] 0.0 [2] 0.0 [2]
Net income 14.1 [1] 17.9 [1] 30.4 [2] 59.9 [2]
Consolidating Adjustments [Member]        
Premiums and other revenue:        
Earned premiums 0.0 [3] 0.0 [3] 0.0 [4] 0.0 [4]
Net investment income (expense) 0.0 [3] 0.0 [3] 0.0 [4] 0.0 [4]
Fee and other income 0.0 [3] 0.0 [3] 0.0 [4] 0.0 [4]
Net realized investment and other (losses) gains 0.0 [3] (2.0) [3] 0.0 [4] (2.0) [4]
Total revenue 0.0 [3] (2.0) [3] 0.0 [4] (2.0) [4]
Expenses:        
Losses and loss adjustment expenses 0.0 [3] 0.0 [3] 0.0 [4] 0.0 [4]
Underwriting, acquisition and insurance expenses 0.0 [3] 0.0 [3] 0.0 [4] 0.0 [4]
Interest expense 0.0 [3] 0.0 [3] 0.0 [4] 0.0 [4]
Fee and other expense 0.0 [3] 0.0 [3] 0.0 [4] 0.0 [4]
Foreign currency exchange loss (gain) 0.0 [3] 0.0 [3] 0.0 [4] 0.0 [4]
Total expenses 0.0 [3] 0.0 [3] 0.0 [4] 0.0 [4]
Impairment of intangible assets [4]     0.0 0.0
Income before income taxes 0.0 [3] (2.0) [3] 0.0 [4] (2.0) [4]
Provision for income taxes 0.0 [3] 0.0 [3] 0.0 [4] 0.0 [4]
Net income before equity in earnings of subsidiaries 0.0 [3] (2.0) [3] 0.0 [4] (2.0) [4]
Equity in undistributed earnings of subsidiaries (32.7) [3] (31.2) [3] (66.5) [4] (95.4) [4]
Net income $ (32.7) [3] $ (33.2) [3] $ (66.5) [4] $ (97.4) [4]
[1] Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
[2] Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations
[3] Includes all Argo Group parent company eliminations.
[4] Includes all Argo Group parent company eliminations
v3.5.0.2
Senior Unsecured Fixed Rate Notes - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Condensed Financial Statements, Captions [Line Items]    
Net cash flows (used by) from operating activities $ 31.5 $ 94.6
Cash flows from investing activities:    
Proceeds from sales of investments 630.5 643.9
Maturities and mandatory calls of fixed maturity investments 673.3 382.6
Purchases of investments (1,255.7) (1,017.3)
Change in short-term investments and foreign regulatory deposits (11.0) (40.7)
Settlements of foreign currency exchange forward contracts 6.8 (4.6)
Purchases of fixed assets (22.7) (14.4)
Purchases of fixed assets and other, net (23.6) 4.2
Cash provided (used by) investing activities 20.3 (31.9)
Cash flows from financing activities:    
Activity under stock incentive plans 0.2 (1.4)
Repurchase of Company's common shares (40.0) (24.9)
Excess tax expense from share-based payment arrangements 0.1 0.1
Payment of cash dividends to common shareholders (13.1) (11.2)
Cash used by financing activities (52.8) (37.4)
Effect of exchange rate changes on cash (0.1) 0.2
Change in cash (1.1) 25.5
Cash, beginning of period 121.7 [1] 81.0
Cash, end of period 120.6 106.5
Argo Group International Holdings, Ltd (Parent Guarantor) [Member]    
Condensed Financial Statements, Captions [Line Items]    
Net cash flows (used by) from operating activities 14.7 11.4
Cash flows from investing activities:    
Proceeds from sales of investments 0.0 0.0
Maturities and mandatory calls of fixed maturity investments 0.0 0.0
Purchases of investments 0.0 0.0
Change in short-term investments and foreign regulatory deposits (1.8) 0.2
Settlements of foreign currency exchange forward contracts 0.0 0.8
Purchases of fixed assets and other, net 0.0 0.2
Cash provided (used by) investing activities (1.8) 1.2
Cash flows from financing activities:    
Activity under stock incentive plans 0.2 (1.4)
Repurchase of Company's common shares 0.0 0.0
Excess tax expense from share-based payment arrangements 0.0 0.0
Payment of cash dividends to common shareholders (13.1) (11.2)
Cash used by financing activities (12.9) (12.6)
Effect of exchange rate changes on cash 0.0 0.0
Change in cash 0.0 0.0
Cash, beginning of period 0.0 0.0
Cash, end of period 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 (9.3) 20.7
Cash flows from investing activities:    
Proceeds from sales of investments 490.0 493.4
Maturities and mandatory calls of fixed maturity investments 296.9 311.7
Purchases of investments (720.1) (770.6)
Change in short-term investments and foreign regulatory deposits (12.3) (6.9)
Settlements of foreign currency exchange forward contracts 0.0 0.0
Purchases of fixed assets and other, net (11.2) (0.4)
Cash provided (used by) investing activities 43.3 27.2
Cash flows from financing activities:    
Activity under stock incentive plans 0.0 0.0
Repurchase of Company's common shares (40.0) (24.9)
Excess tax expense from share-based payment arrangements 0.1 0.1
Payment of cash dividends to common shareholders 0.0 0.0
Cash used by financing activities (39.9) (24.8)
Effect of exchange rate changes on cash 0.0 0.0
Change in cash (5.9) 23.1
Cash, beginning of period 88.8 49.3
Cash, end of period 82.9 72.4
Other Subsidiaries and Eliminations [Member]    
Condensed Financial Statements, Captions [Line Items]    
Net cash flows (used by) from operating activities [2] 26.1 62.5
Cash flows from investing activities:    
Proceeds from sales of investments [2] 140.5 150.5
Maturities and mandatory calls of fixed maturity investments [2] 376.4 70.9
Purchases of investments [2] (535.6) (246.7)
Change in short-term investments and foreign regulatory deposits [2] 3.1 (34.0)
Settlements of foreign currency exchange forward contracts [2] 6.8 (5.4)
Purchases of fixed assets and other, net [2] (12.4) 4.4
Cash provided (used by) investing activities [2] (21.2) (60.3)
Cash flows from financing activities:    
Activity under stock incentive plans [2] 0.0 0.0
Repurchase of Company's common shares [2] 0.0 0.0
Excess tax expense from share-based payment arrangements [2] 0.0 0.0
Payment of cash dividends to common shareholders [2] 0.0 0.0
Cash used by financing activities [2] 0.0 0.0
Effect of exchange rate changes on cash [2] (0.1) 0.2
Change in cash [2] 4.8 2.4
Cash, beginning of period [2] 32.9 31.7
Cash, end of period [2] 37.7 34.1
Consolidating Adjustments [Member]    
Condensed Financial Statements, Captions [Line Items]    
Net cash flows (used by) from operating activities [3] 0.0 0.0
Cash flows from investing activities:    
Proceeds from sales of investments [3] 0.0 0.0
Maturities and mandatory calls of fixed maturity investments [3] 0.0 0.0
Purchases of investments [3] 0.0 0.0
Change in short-term investments and foreign regulatory deposits [3] 0.0 0.0
Settlements of foreign currency exchange forward contracts [3] 0.0 0.0
Purchases of fixed assets and other, net [3] 0.0 0.0
Cash provided (used by) investing activities [3] 0.0 0.0
Cash flows from financing activities:    
Activity under stock incentive plans [3] 0.0 0.0
Repurchase of Company's common shares [3] 0.0 0.0
Excess tax expense from share-based payment arrangements [3] 0.0 0.0
Payment of cash dividends to common shareholders [3] 0.0 0.0
Cash used by financing activities [3] 0.0 0.0
Effect of exchange rate changes on cash [3] 0.0 0.0
Change in cash [3] 0.0 0.0
Cash, beginning of period [3] 0.0 0.0
Cash, end of period [3] $ 0.0 $ 0.0
[1] Derived from audited consolidated financial statements.
[2] Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
[3] Includes all Argo Group parent company eliminations.