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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
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Delaware
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22-1867895
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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475 Steamboat Road, Greenwich, Connecticut
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06830
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(Address of principal executive offices)
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(Zip Code)
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(203) 629-3000
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(Registrant’s telephone number, including area code)
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None
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Former name, former address and former fiscal year, if changed since last report
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
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EX-10.1
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EX-31.1
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EX-31.2
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EX-32.1
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EX-101 INSTANCE DOCUMENT
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EX-101 SCHEMA DOCUMENT
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EX-101 CALCULATION LINKBASE DOCUMENT
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EX-101 LABELS LINKBASE DOCUMENT
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EX-101 PRESENTATION LINKBASE DOCUMENT
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EX-101 DEFINITION LINKBASE DOCUMENT
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Item 1.
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Financial Statements
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September 30,
2015 |
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December 31,
2014 |
||||
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(Unaudited)
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(Audited)
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||||
Assets
|
|
|
|
||||
Investments:
|
|
|
|
||||
Fixed maturity securities
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$
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12,368,319
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|
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$
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12,705,160
|
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Investment funds
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1,140,218
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1,211,401
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||
Real estate
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873,909
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731,612
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Arbitrage trading account
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351,179
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450,648
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Loans receivable
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286,273
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322,012
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Equity securities
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177,877
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170,991
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|
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Total investments
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15,197,775
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|
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15,591,824
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||
Cash and cash equivalents
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879,934
|
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674,441
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Premiums and fees receivable
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1,720,637
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1,651,088
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Due from reinsurers
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1,559,277
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1,503,441
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Deferred policy acquisition costs
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524,269
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|
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488,525
|
|
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Prepaid reinsurance premiums
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400,392
|
|
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395,748
|
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Trading account receivables from brokers and clearing organizations
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401,941
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|
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371,034
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Property, furniture and equipment
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336,825
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332,098
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Goodwill
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153,281
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|
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150,944
|
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Accrued investment income
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128,140
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|
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120,367
|
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||
Federal and foreign income taxes
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2,021
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|
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30,171
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Other assets
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434,074
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|
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369,558
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Total assets
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$
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21,738,566
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|
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$
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21,679,239
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||||
Liabilities and Equity
|
|
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||||
Liabilities:
|
|
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||||
Reserves for losses and loss expenses
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$
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10,661,054
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$
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10,369,701
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Unearned premiums
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3,198,009
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3,026,732
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Due to reinsurers
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230,008
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|
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237,270
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Trading account securities sold but not yet purchased
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33,360
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106,079
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Other liabilities
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820,278
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859,736
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Senior notes and other debt
|
1,838,965
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2,115,527
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Subordinated debentures
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340,255
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|
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340,060
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|
||
Total liabilities
|
17,121,929
|
|
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17,055,105
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|
||
Equity:
|
|
|
|
||||
Preferred stock, par value $.10 per share:
|
|
|
|
||||
Authorized 5,000,000 shares; issued and outstanding - none
|
|
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Common stock, par value $.20 per share:
|
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||||
Authorized 500,000,000 shares, issued and outstanding, net of treasury shares, 123,267,846 and 126,748,836 shares, respectively
|
47,024
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47,024
|
|
||
Additional paid-in capital
|
989,547
|
|
|
991,512
|
|
||
Retained earnings
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6,083,120
|
|
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5,732,410
|
|
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Accumulated other comprehensive income
|
28,111
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|
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183,550
|
|
||
Treasury stock, at cost, 111,850,072 and 108,369,082 shares, respectively
|
(2,564,536
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)
|
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(2,364,551
|
)
|
||
Total stockholders’ equity
|
4,583,266
|
|
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4,589,945
|
|
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Noncontrolling interests
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33,371
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34,189
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Total equity
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4,616,637
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4,624,134
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Total liabilities and equity
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$
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21,738,566
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$
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21,679,239
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|
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For the Three Months
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For the Nine Months
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||||||||||||
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Ended September 30,
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Ended September 30,
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||||||||||||
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2015
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2014
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2015
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2014
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||||||||
REVENUES:
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|
|
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||||||||
Net premiums written
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$
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1,571,037
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$
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1,525,382
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$
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4,690,364
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$
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4,541,038
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Change in net unearned premiums
|
(39,479
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)
|
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(64,578
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)
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(193,752
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)
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(298,977
|
)
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||||
Net premiums earned
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1,531,558
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1,460,804
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4,496,612
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4,242,061
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|
||||
Net investment income
|
133,214
|
|
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179,225
|
|
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385,036
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|
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486,665
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|
||||
Insurance service fees
|
35,192
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|
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26,345
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107,652
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|
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81,970
|
|
||||
Net realized investment gains
|
66,419
|
|
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72,258
|
|
|
113,020
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|
|
234,180
|
|
||||
Other-than-temporary impairments
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(12,515
|
)
|
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—
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(12,515
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)
|
|
—
|
|
||||
Revenues from wholly-owned investees
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107,059
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101,568
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|
|
305,261
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|
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298,693
|
|
||||
Other income
|
30
|
|
|
405
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|
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335
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|
|
931
|
|
||||
Total revenues
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1,860,957
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1,840,605
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5,395,401
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5,344,500
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||||
OPERATING COSTS AND EXPENSES:
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|
|
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||||||||
Losses and loss expenses
|
926,355
|
|
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887,123
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2,733,298
|
|
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2,576,996
|
|
||||
Other operating costs and expenses
|
573,541
|
|
|
544,303
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|
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1,698,169
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1,593,619
|
|
||||
Expenses from wholly-owned investees
|
100,500
|
|
|
97,797
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|
|
288,900
|
|
|
290,823
|
|
||||
Interest expense
|
31,641
|
|
|
32,929
|
|
|
99,210
|
|
|
93,570
|
|
||||
Total operating costs and expenses
|
1,632,037
|
|
|
1,562,152
|
|
|
4,819,577
|
|
|
4,555,008
|
|
||||
Income before income taxes
|
228,920
|
|
|
278,453
|
|
|
575,824
|
|
|
789,492
|
|
||||
Income tax expense
|
(76,184
|
)
|
|
(89,662
|
)
|
|
(181,595
|
)
|
|
(250,840
|
)
|
||||
Net income before noncontrolling interests
|
152,736
|
|
|
188,791
|
|
|
394,229
|
|
|
538,652
|
|
||||
Noncontrolling interests
|
(129
|
)
|
|
(252
|
)
|
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(280
|
)
|
|
(479
|
)
|
||||
Net income to common stockholders
|
$
|
152,607
|
|
|
$
|
188,539
|
|
|
$
|
393,949
|
|
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$
|
538,173
|
|
|
|
|
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||||||||
NET INCOME PER SHARE:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.24
|
|
|
$
|
1.48
|
|
|
$
|
3.17
|
|
|
$
|
4.20
|
|
Diluted
|
$
|
1.18
|
|
|
$
|
1.42
|
|
|
$
|
3.02
|
|
|
$
|
4.02
|
|
|
For the Three Months
|
|
For the Nine Months
|
||||||||||||
|
Ended September 30,
|
|
Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Net income before noncontrolling interests
|
$
|
152,736
|
|
|
$
|
188,791
|
|
|
$
|
394,229
|
|
|
$
|
538,652
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Change in unrealized currency translation adjustments
|
(62,535
|
)
|
|
(49,380
|
)
|
|
(76,713
|
)
|
|
(28,590
|
)
|
||||
Change in unrealized investment gains (losses), net of taxes
|
4,497
|
|
|
(12,912
|
)
|
|
(78,832
|
)
|
|
108,232
|
|
||||
Change in net pension asset, net of taxes
|
—
|
|
|
2,020
|
|
|
—
|
|
|
4,631
|
|
||||
Other comprehensive income (loss)
|
(58,038
|
)
|
|
(60,272
|
)
|
|
(155,545
|
)
|
|
84,273
|
|
||||
Comprehensive income
|
94,698
|
|
|
128,519
|
|
|
238,684
|
|
|
622,925
|
|
||||
Comprehensive (income) to the noncontrolling interest
|
(35
|
)
|
|
(334
|
)
|
|
(174
|
)
|
|
(598
|
)
|
||||
Comprehensive income to common stockholders
|
$
|
94,663
|
|
|
$
|
128,185
|
|
|
$
|
238,510
|
|
|
$
|
622,327
|
|
|
For the Nine Months
|
||||||
|
Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
COMMON STOCK:
|
|
|
|
||||
Beginning and end of period
|
$
|
47,024
|
|
|
$
|
47,024
|
|
ADDITIONAL PAID-IN CAPITAL:
|
|
|
|
||||
Beginning of period
|
$
|
991,512
|
|
|
$
|
967,440
|
|
Restricted stock units issued, net of tax
|
(25,394
|
)
|
|
(6,383
|
)
|
||
Stock incentive plans expensed
|
23,429
|
|
|
21,047
|
|
||
End of period
|
$
|
989,547
|
|
|
$
|
982,104
|
|
RETAINED EARNINGS:
|
|
|
|
||||
Beginning of period
|
$
|
5,732,410
|
|
|
$
|
5,265,015
|
|
Net income to common stockholders
|
393,949
|
|
|
538,173
|
|
||
Dividends
|
(43,239
|
)
|
|
(40,782
|
)
|
||
End of period
|
$
|
6,083,120
|
|
|
$
|
5,762,406
|
|
ACCUMULATED OTHER COMPREHENSIVE INCOME:
|
|
|
|
||||
Unrealized investment gains:
|
|
|
|
||||
Beginning of period
|
$
|
306,199
|
|
|
$
|
256,566
|
|
Unrealized gains (losses) on securities not other-than-temporarily impaired
|
(78,773
|
)
|
|
107,501
|
|
||
Unrealized gains on other-than-temporarily impaired securities
|
47
|
|
|
612
|
|
||
End of period
|
227,473
|
|
|
364,679
|
|
||
Currency translation adjustments:
|
|
|
|
||||
Beginning of period
|
(122,649
|
)
|
|
(60,524
|
)
|
||
Net change in period
|
(76,713
|
)
|
|
(28,590
|
)
|
||
End of period
|
(199,362
|
)
|
|
(89,114
|
)
|
||
Net pension asset:
|
|
|
|
||||
Beginning of period
|
—
|
|
|
(6,651
|
)
|
||
Net change in period
|
—
|
|
|
4,631
|
|
||
End of period
|
—
|
|
|
(2,020
|
)
|
||
Total accumulated other comprehensive income
|
$
|
28,111
|
|
|
$
|
273,545
|
|
TREASURY STOCK:
|
|
|
|
||||
Beginning of period
|
$
|
(2,364,551
|
)
|
|
$
|
(2,132,835
|
)
|
Stock exercised/vested
|
23,044
|
|
|
6,384
|
|
||
Stock repurchased
|
(223,652
|
)
|
|
(230,319
|
)
|
||
Stock incentive plans expensed
|
623
|
|
|
594
|
|
||
End of period
|
$
|
(2,564,536
|
)
|
|
$
|
(2,356,176
|
)
|
NONCONTROLLING INTERESTS:
|
|
|
|
||||
Beginning of period
|
$
|
34,189
|
|
|
$
|
33,359
|
|
Contributions (distributions)
|
(992
|
)
|
|
614
|
|
||
Net income
|
280
|
|
|
479
|
|
||
Other comprehensive income (loss), net of tax
|
(106
|
)
|
|
119
|
|
||
End of period
|
$
|
33,371
|
|
|
$
|
34,571
|
|
|
For the Nine Months
|
||||||
|
Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
CASH FROM OPERATING ACTIVITIES:
|
|
|
|
||||
Net income to common stockholders
|
$
|
393,949
|
|
|
$
|
538,173
|
|
Adjustments to reconcile net income to net cash from operating activities:
|
|
|
|
||||
Net investment gains
|
(100,505
|
)
|
|
(234,180
|
)
|
||
Depreciation and amortization
|
65,384
|
|
|
63,415
|
|
||
Noncontrolling interests
|
280
|
|
|
479
|
|
||
Investment funds
|
(50,838
|
)
|
|
(150,502
|
)
|
||
Stock incentive plans
|
24,052
|
|
|
21,549
|
|
||
Change in:
|
|
|
|
||||
Arbitrage trading account
|
(4,157
|
)
|
|
1,781
|
|
||
Premiums and fees receivable
|
(99,541
|
)
|
|
(125,319
|
)
|
||
Reinsurance accounts
|
(62,272
|
)
|
|
12,967
|
|
||
Deferred policy acquisition costs
|
(40,216
|
)
|
|
(44,087
|
)
|
||
Income taxes
|
80,587
|
|
|
11,092
|
|
||
Reserves for losses and loss expenses
|
362,854
|
|
|
277,542
|
|
||
Unearned premiums
|
198,534
|
|
|
345,521
|
|
||
Other
|
(147,776
|
)
|
|
(143,645
|
)
|
||
Net cash from operating activities
|
620,335
|
|
|
574,786
|
|
||
CASH FROM (USED IN) INVESTING ACTIVITIES:
|
|
|
|
||||
Proceeds from sale of fixed maturity securities
|
765,764
|
|
|
546,970
|
|
||
Proceeds from sale of equity securities
|
23,778
|
|
|
109,928
|
|
||
Distributions from investment funds
|
198,489
|
|
|
285,233
|
|
||
Proceeds from maturities and prepayments of fixed maturity securities
|
2,727,635
|
|
|
1,887,252
|
|
||
Purchase of fixed maturity securities
|
(3,387,648
|
)
|
|
(3,098,477
|
)
|
||
Purchase of equity securities
|
(37,754
|
)
|
|
(28,606
|
)
|
||
Additions to real estate
|
(150,940
|
)
|
|
(253,007
|
)
|
||
Real estate sold
|
—
|
|
|
343,723
|
|
||
Change in loans receivable
|
35,739
|
|
|
320
|
|
||
Net additions to property, furniture and equipment
|
(40,262
|
)
|
|
(30,797
|
)
|
||
Change in balances due to security brokers
|
43,429
|
|
|
68,411
|
|
||
Cash distributed in connection with business disposition
|
—
|
|
|
15,612
|
|
||
Payment for business purchased net of cash aquired
|
(7,156
|
)
|
|
(65,423
|
)
|
||
Net cash from (used in) investing activities
|
171,074
|
|
|
(218,861
|
)
|
||
CASH FROM (USED IN) FINANCING ACTIVITIES:
|
|
|
|
||||
Repayment of senior notes and other debt
|
(279,204
|
)
|
|
(1,829
|
)
|
||
Net proceeds from issuance of debt
|
1,891
|
|
|
431,409
|
|
||
Cash dividends to common stockholders
|
(43,239
|
)
|
|
(40,782
|
)
|
||
Purchase of common treasury shares
|
(223,652
|
)
|
|
(236,703
|
)
|
||
Other, net
|
(3,345
|
)
|
|
913
|
|
||
Net cash from (used in) financing activities
|
(547,549
|
)
|
|
153,008
|
|
||
Net impact on cash due to change in foreign exchange rates
|
(38,367
|
)
|
|
(6,386
|
)
|
||
Net change in cash and cash equivalents
|
205,493
|
|
|
502,547
|
|
||
Cash and cash equivalents at beginning of year
|
674,441
|
|
|
839,738
|
|
||
Cash and cash equivalents at end of period
|
$
|
879,934
|
|
|
$
|
1,342,285
|
|
|
For the Three Months
|
|
For the Nine Months
|
||||||||
|
Ended September 30,
|
|
Ended September 30,
|
||||||||
(In thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Basic
|
123,163
|
|
|
127,165
|
|
|
124,294
|
|
|
128,225
|
|
Diluted
|
128,947
|
|
|
133,001
|
|
|
130,563
|
|
|
133,886
|
|
(In thousands)
|
2014
|
||
|
|
||
Cash and cash equivalents
|
$
|
17,457
|
|
Real estate, furniture and equipment
|
669
|
|
|
Goodwill and other intangibles assets
|
79,646
|
|
|
Premium and service fee receivable
|
24,432
|
|
|
Other assets
|
2,590
|
|
|
Total assets acquired
|
124,794
|
|
|
Deferred federal income tax
|
(7,107
|
)
|
|
Debt
|
—
|
|
|
Other liabilities assumed
|
(34,809
|
)
|
|
Net assets acquired
|
$
|
82,878
|
|
(In thousands)
|
Unrealized Investment Gains (Losses)
|
|
Currency Translation Adjustments
|
|
Net Pension Asset
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||
As of and for the nine months ended September 30, 2015:
|
|
|
|
|
|
|
|||||||||
Changes in AOCI
|
|
|
|
|
|
|
|||||||||
Beginning of period
|
$
|
306,199
|
|
|
$
|
(122,649
|
)
|
|
$
|
—
|
|
|
$
|
183,550
|
|
Other comprehensive income (loss) before reclassifications
|
(69,078
|
)
|
|
(76,713
|
)
|
|
—
|
|
|
(145,791
|
)
|
||||
Amounts reclassified from AOCI
|
(9,754
|
)
|
|
—
|
|
|
—
|
|
|
(9,754
|
)
|
||||
Other comprehensive income (loss)
|
(78,832
|
)
|
|
(76,713
|
)
|
|
—
|
|
|
(155,545
|
)
|
||||
Unrealized investment gain related to non-controlling interest
|
106
|
|
|
—
|
|
|
—
|
|
|
106
|
|
||||
End of period
|
$
|
227,473
|
|
|
$
|
(199,362
|
)
|
|
$
|
—
|
|
|
$
|
28,111
|
|
Amounts reclassified from AOCI
|
|
|
|
|
|
|
|
||||||||
Pre-tax
|
$
|
(15,006
|
)
|
(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(15,006
|
)
|
Tax effect (2)
|
5,252
|
|
|
—
|
|
|
—
|
|
|
5,252
|
|
||||
After-tax amounts reclassified
|
$
|
(9,754
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(9,754
|
)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
||||||||
Pre-tax
|
$
|
(135,186
|
)
|
|
$
|
(76,713
|
)
|
|
$
|
—
|
|
|
$
|
(211,899
|
)
|
Tax effect
|
56,354
|
|
|
—
|
|
|
—
|
|
|
56,354
|
|
||||
Other comprehensive income (loss)
|
$
|
(78,832
|
)
|
|
$
|
(76,713
|
)
|
|
$
|
—
|
|
|
$
|
(155,545
|
)
|
|
|
|
|
|
|
|
|
||||||||
As of and for the three months ended September 30, 2015:
|
|
|
|
|
|
|
|||||||||
Changes in AOCI
|
|
|
|
|
|
|
|||||||||
Beginning of period
|
$
|
222,882
|
|
|
$
|
(136,827
|
)
|
|
$
|
—
|
|
|
$
|
86,055
|
|
Other comprehensive income (loss) before reclassifications
|
3,943
|
|
|
(62,535
|
)
|
|
—
|
|
|
(58,592
|
)
|
||||
Amounts reclassified from AOCI
|
554
|
|
|
—
|
|
|
—
|
|
|
554
|
|
||||
Other comprehensive income (loss)
|
4,497
|
|
|
(62,535
|
)
|
|
—
|
|
|
(58,038
|
)
|
||||
Unrealized investment gain related to non-controlling interest
|
94
|
|
|
—
|
|
|
—
|
|
|
94
|
|
||||
End of period
|
$
|
227,473
|
|
|
$
|
(199,362
|
)
|
|
$
|
—
|
|
|
$
|
28,111
|
|
Amounts reclassified from AOCI
|
|
|
|
|
|
|
|
||||||||
Pre-tax
|
$
|
852
|
|
(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
852
|
|
Tax effect (2)
|
(298
|
)
|
|
—
|
|
|
—
|
|
|
(298
|
)
|
||||
After-tax amounts reclassified
|
$
|
554
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
554
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
||||||||
Pre-tax
|
$
|
(7,731
|
)
|
|
$
|
(62,535
|
)
|
|
$
|
—
|
|
|
$
|
(70,266
|
)
|
Tax effect
|
12,228
|
|
|
—
|
|
|
—
|
|
|
12,228
|
|
||||
Other comprehensive income (loss)
|
$
|
4,497
|
|
|
$
|
(62,535
|
)
|
|
$
|
—
|
|
|
$
|
(58,038
|
)
|
|
|
|
|
|
|
|
|
|
Unrealized Investment Gains (Losses)
|
|
Currency Translation Adjustments
|
|
Net Pension Asset
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||
(In thousands)
|
|
|
|
|
|
|
|
||||||||
As of and for the nine months ended September 30, 2014:
|
|
|
|
|
|
|
|||||||||
Changes in AOCI
|
|
|
|
|
|
|
|||||||||
Beginning of period
|
$
|
256,566
|
|
|
$
|
(60,524
|
)
|
|
$
|
(6,651
|
)
|
|
$
|
189,391
|
|
Other comprehensive income (loss) before reclassifications
|
143,388
|
|
|
(28,590
|
)
|
|
—
|
|
|
114,798
|
|
||||
Amounts reclassified from AOCI
|
(35,156
|
)
|
|
—
|
|
|
4,631
|
|
|
(30,525
|
)
|
||||
Other comprehensive income (loss)
|
108,232
|
|
|
(28,590
|
)
|
|
4,631
|
|
|
84,273
|
|
||||
Unrealized investment loss related to non-controlling interest
|
(119
|
)
|
|
—
|
|
|
—
|
|
|
(119
|
)
|
||||
End of period
|
$
|
364,679
|
|
|
$
|
(89,114
|
)
|
|
$
|
(2,020
|
)
|
|
$
|
273,545
|
|
Amounts reclassified from AOCI
|
|
|
|
|
|
|
|
||||||||
Pre-tax
|
$
|
(54,086
|
)
|
(1)
|
$
|
—
|
|
|
$
|
7,125
|
|
(3)
|
$
|
(46,961
|
)
|
Tax effect (2)
|
18,930
|
|
|
—
|
|
|
(2,494
|
)
|
|
16,436
|
|
||||
After-tax amounts reclassified
|
$
|
(35,156
|
)
|
|
$
|
—
|
|
|
$
|
4,631
|
|
|
$
|
(30,525
|
)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
||||||||
Pre-tax
|
$
|
163,651
|
|
|
$
|
(28,590
|
)
|
|
$
|
7,125
|
|
|
$
|
142,186
|
|
Tax effect
|
(55,419
|
)
|
|
—
|
|
|
(2,494
|
)
|
|
(57,913
|
)
|
||||
Other comprehensive income (loss)
|
$
|
108,232
|
|
|
$
|
(28,590
|
)
|
|
$
|
4,631
|
|
|
$
|
84,273
|
|
|
|
|
|
|
|
|
|
||||||||
As of and for the three months ended September 30, 2014:
|
|
|
|
|
|
|
|||||||||
Changes in AOCI
|
|
|
|
|
|
|
|||||||||
Beginning of period
|
$
|
377,673
|
|
|
$
|
(39,734
|
)
|
|
$
|
(4,040
|
)
|
|
$
|
333,899
|
|
Other comprehensive income (loss) before reclassifications
|
3,099
|
|
|
(49,380
|
)
|
|
—
|
|
|
(46,281
|
)
|
||||
Amounts reclassified from AOCI
|
(16,011
|
)
|
|
—
|
|
|
2,020
|
|
|
(13,991
|
)
|
||||
Other comprehensive income (loss)
|
(12,912
|
)
|
|
(49,380
|
)
|
|
2,020
|
|
|
(60,272
|
)
|
||||
Unrealized investment loss related to non-controlling interest
|
(82
|
)
|
|
—
|
|
|
—
|
|
|
(82
|
)
|
||||
End of period
|
$
|
364,679
|
|
|
$
|
(89,114
|
)
|
|
$
|
(2,020
|
)
|
|
$
|
273,545
|
|
Amounts reclassified from AOCI
|
|
|
|
|
|
|
|
||||||||
Pre-tax
|
$
|
(24,632
|
)
|
(1)
|
$
|
—
|
|
|
$
|
3,108
|
|
(3)
|
$
|
(21,524
|
)
|
Tax effect (2)
|
8,621
|
|
|
—
|
|
|
(1,088
|
)
|
|
7,533
|
|
||||
After-tax amounts reclassified
|
$
|
(16,011
|
)
|
|
$
|
—
|
|
|
$
|
2,020
|
|
|
$
|
(13,991
|
)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
||||||||
Pre-tax
|
$
|
(25,029
|
)
|
|
$
|
(49,380
|
)
|
|
$
|
3,108
|
|
|
$
|
(71,301
|
)
|
Tax effect
|
12,117
|
|
|
—
|
|
|
(1,088
|
)
|
|
11,029
|
|
||||
Other comprehensive income (loss)
|
$
|
(12,912
|
)
|
|
$
|
(49,380
|
)
|
|
$
|
2,020
|
|
|
$
|
(60,272
|
)
|
(In thousands)
|
Amortized
Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
|
Carrying
Value
|
||||||||||||
Gains
|
|
Losses
|
|
||||||||||||||||
September 30, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||
State and municipal
|
$
|
76,065
|
|
|
$
|
15,824
|
|
|
$
|
—
|
|
|
$
|
91,889
|
|
|
$
|
76,065
|
|
Residential mortgage-backed
|
20,025
|
|
|
2,637
|
|
|
—
|
|
|
22,662
|
|
|
20,025
|
|
|||||
Corporate
|
5,000
|
|
|
65
|
|
|
—
|
|
|
5,065
|
|
|
5,000
|
|
|||||
Total held to maturity
|
101,090
|
|
|
18,526
|
|
|
—
|
|
|
119,616
|
|
|
101,090
|
|
|||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and government agency
|
641,696
|
|
|
32,748
|
|
|
(1,476
|
)
|
|
672,968
|
|
|
672,968
|
|
|||||
State and municipal:
|
|
|
|
|
|
|
|
|
|
||||||||||
Special revenue
|
2,476,539
|
|
|
104,030
|
|
|
(4,848
|
)
|
|
2,575,721
|
|
|
2,575,721
|
|
|||||
State general obligation
|
602,995
|
|
|
28,828
|
|
|
(4,511
|
)
|
|
627,312
|
|
|
627,312
|
|
|||||
Pre-refunded
|
442,026
|
|
|
34,132
|
|
|
—
|
|
|
476,158
|
|
|
476,158
|
|
|||||
Corporate backed
|
385,972
|
|
|
13,156
|
|
|
(709
|
)
|
|
398,419
|
|
|
398,419
|
|
|||||
Local general obligation
|
321,376
|
|
|
24,968
|
|
|
(197
|
)
|
|
346,147
|
|
|
346,147
|
|
|||||
Total state and municipal
|
4,228,908
|
|
|
205,114
|
|
|
(10,265
|
)
|
|
4,423,757
|
|
|
4,423,757
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential (1)
|
1,038,903
|
|
|
27,601
|
|
|
(7,084
|
)
|
|
1,059,420
|
|
|
1,059,420
|
|
|||||
Commercial
|
67,003
|
|
|
1,236
|
|
|
(35
|
)
|
|
68,204
|
|
|
68,204
|
|
|||||
Total mortgage-backed securities
|
1,105,906
|
|
|
28,837
|
|
|
(7,119
|
)
|
|
1,127,624
|
|
|
1,127,624
|
|
|||||
Corporate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Industrial
|
1,888,762
|
|
|
80,342
|
|
|
(17,257
|
)
|
|
1,951,847
|
|
|
1,951,847
|
|
|||||
Asset-backed
|
1,634,056
|
|
|
17,722
|
|
|
(11,681
|
)
|
|
1,640,097
|
|
|
1,640,097
|
|
|||||
Financial
|
1,264,970
|
|
|
35,728
|
|
|
(11,980
|
)
|
|
1,288,718
|
|
|
1,288,718
|
|
|||||
Utilities
|
187,325
|
|
|
10,549
|
|
|
(1,549
|
)
|
|
196,325
|
|
|
196,325
|
|
|||||
Other
|
80,796
|
|
|
446
|
|
|
(18
|
)
|
|
81,224
|
|
|
81,224
|
|
|||||
Total corporate
|
5,055,909
|
|
|
144,787
|
|
|
(42,485
|
)
|
|
5,158,211
|
|
|
5,158,211
|
|
|||||
Foreign
|
854,313
|
|
|
46,433
|
|
|
(16,077
|
)
|
|
884,669
|
|
|
884,669
|
|
|||||
Total available for sale
|
11,886,732
|
|
|
457,919
|
|
|
(77,422
|
)
|
|
12,267,229
|
|
|
12,267,229
|
|
|||||
Total investments in fixed maturity securities
|
$
|
11,987,822
|
|
|
$
|
476,445
|
|
|
$
|
(77,422
|
)
|
|
$
|
12,386,845
|
|
|
$
|
12,368,319
|
|
(In thousands)
|
Amortized
Cost |
|
Gross Unrealized
|
|
Fair
Value |
|
Carrying
Value |
||||||||||||
Gains
|
|
Losses
|
|||||||||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||
State and municipal
|
$
|
72,901
|
|
|
$
|
17,501
|
|
|
$
|
—
|
|
|
$
|
90,402
|
|
|
$
|
72,901
|
|
Residential mortgage-backed
|
23,278
|
|
|
2,854
|
|
|
—
|
|
|
26,132
|
|
|
23,278
|
|
|||||
Corporate
|
4,998
|
|
|
291
|
|
|
—
|
|
|
5,289
|
|
|
4,998
|
|
|||||
Total held to maturity
|
101,177
|
|
|
20,646
|
|
|
—
|
|
|
121,823
|
|
|
101,177
|
|
|||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and government agency
|
773,192
|
|
|
33,353
|
|
|
(3,157
|
)
|
|
803,388
|
|
|
803,388
|
|
|||||
State and municipal:
|
|
|
|
|
|
|
|
|
|
||||||||||
Special revenue
|
2,264,210
|
|
|
111,841
|
|
|
(2,084
|
)
|
|
2,373,967
|
|
|
2,373,967
|
|
|||||
State general obligation
|
674,022
|
|
|
37,615
|
|
|
(787
|
)
|
|
710,850
|
|
|
710,850
|
|
|||||
Pre-refunded
|
504,778
|
|
|
35,619
|
|
|
(289
|
)
|
|
540,108
|
|
|
540,108
|
|
|||||
Corporate backed
|
413,234
|
|
|
18,976
|
|
|
(855
|
)
|
|
431,355
|
|
|
431,355
|
|
|||||
Local general obligation
|
281,622
|
|
|
25,099
|
|
|
(5
|
)
|
|
306,716
|
|
|
306,716
|
|
|||||
Total state and municipal
|
4,137,866
|
|
|
229,150
|
|
|
(4,020
|
)
|
|
4,362,996
|
|
|
4,362,996
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential (1)
|
1,201,924
|
|
|
27,124
|
|
|
(9,449
|
)
|
|
1,219,599
|
|
|
1,219,599
|
|
|||||
Commercial
|
74,479
|
|
|
1,610
|
|
|
(52
|
)
|
|
76,037
|
|
|
76,037
|
|
|||||
Total mortgage-backed securities
|
1,276,403
|
|
|
28,734
|
|
|
(9,501
|
)
|
|
1,295,636
|
|
|
1,295,636
|
|
|||||
Corporate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset-backed
|
2,019,032
|
|
|
18,868
|
|
|
(11,974
|
)
|
|
2,025,926
|
|
|
2,025,926
|
|
|||||
Industrial
|
1,606,724
|
|
|
117,206
|
|
|
(5,131
|
)
|
|
1,718,799
|
|
|
1,718,799
|
|
|||||
Financial
|
1,140,801
|
|
|
38,080
|
|
|
(7,673
|
)
|
|
1,171,208
|
|
|
1,171,208
|
|
|||||
Utilities
|
184,107
|
|
|
12,436
|
|
|
(1
|
)
|
|
196,542
|
|
|
196,542
|
|
|||||
Other
|
86,294
|
|
|
1,370
|
|
|
(2
|
)
|
|
87,662
|
|
|
87,662
|
|
|||||
Total corporate
|
5,036,958
|
|
|
187,960
|
|
|
(24,781
|
)
|
|
5,200,137
|
|
|
5,200,137
|
|
|||||
Foreign
|
897,668
|
|
|
62,223
|
|
|
(18,065
|
)
|
|
941,826
|
|
|
941,826
|
|
|||||
Total available for sale
|
12,122,087
|
|
|
541,420
|
|
|
(59,524
|
)
|
|
12,603,983
|
|
|
12,603,983
|
|
|||||
Total investments in fixed maturity securities
|
$
|
12,223,264
|
|
|
$
|
562,066
|
|
|
$
|
(59,524
|
)
|
|
$
|
12,725,806
|
|
|
$
|
12,705,160
|
|
(1)
|
Gross unrealized losses for residential mortgage-backed securities include
$1,023,313
and
$1,095,671
as of
September 30, 2015
and
December 31, 2014
, respectively, related to the non-credit portion of other-than-temporary impairments (“OTTI”) recognized in accumulated other comprehensive income.
|
(In thousands)
|
Amortized
Cost
|
|
Fair Value
|
||||
Due in one year or less
|
$
|
872,912
|
|
|
$
|
884,845
|
|
Due after one year through five years
|
3,896,880
|
|
|
4,043,852
|
|
||
Due after five years through ten years
|
3,572,074
|
|
|
3,706,649
|
|
||
Due after ten years
|
2,520,025
|
|
|
2,601,213
|
|
||
Mortgage-backed securities
|
1,125,931
|
|
|
1,150,286
|
|
||
Total
|
$
|
11,987,822
|
|
|
$
|
12,386,845
|
|
(In thousands)
|
Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
|
Carrying
Value
|
||||||||||||
Gains
|
|
Losses
|
|
||||||||||||||||
September 30, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stocks
|
$
|
64,382
|
|
|
$
|
—
|
|
|
$
|
(22,254
|
)
|
|
$
|
42,128
|
|
|
$
|
42,128
|
|
Preferred stocks
|
118,783
|
|
|
20,756
|
|
|
(3,790
|
)
|
|
135,749
|
|
|
135,749
|
|
|||||
Total
|
$
|
183,165
|
|
|
$
|
20,756
|
|
|
$
|
(26,044
|
)
|
|
$
|
177,877
|
|
|
$
|
177,877
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stocks
|
$
|
69,870
|
|
|
$
|
11,929
|
|
|
$
|
(5,453
|
)
|
|
$
|
76,346
|
|
|
$
|
76,346
|
|
Preferred stocks
|
90,425
|
|
|
8,385
|
|
|
(4,165
|
)
|
|
94,645
|
|
|
94,645
|
|
|||||
Total
|
$
|
160,295
|
|
|
$
|
20,314
|
|
|
$
|
(9,618
|
)
|
|
$
|
170,991
|
|
|
$
|
170,991
|
|
|
For the Three Months
|
|
For the Nine Months
|
||||||||||||
|
Ended September 30,
|
|
Ended September 30,
|
||||||||||||
(In thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Investment income earned on:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities, including cash and cash equivalents and loans receivable
|
$
|
104,936
|
|
|
$
|
117,289
|
|
|
$
|
318,095
|
|
|
$
|
331,947
|
|
Investment funds
|
22,926
|
|
|
59,077
|
|
|
50,838
|
|
|
135,232
|
|
||||
Arbitrage trading account
|
2,608
|
|
|
47
|
|
|
11,470
|
|
|
12,508
|
|
||||
Equity securities available for sale
|
1,109
|
|
|
1,369
|
|
|
3,513
|
|
|
5,418
|
|
||||
Real estate
|
4,389
|
|
|
3,042
|
|
|
9,270
|
|
|
9,207
|
|
||||
Gross investment income
|
135,968
|
|
|
180,824
|
|
|
393,186
|
|
|
494,312
|
|
||||
Investment expense
|
(2,754
|
)
|
|
(1,599
|
)
|
|
(8,150
|
)
|
|
(7,647
|
)
|
||||
Net investment income
|
$
|
133,214
|
|
|
$
|
179,225
|
|
|
$
|
385,036
|
|
|
$
|
486,665
|
|
|
Carrying Value as of
|
|
Income (Loss) from Investment Funds
|
||||||||||||
|
September 30,
|
|
December 31,
|
|
For the Nine Months Ended September 30:
|
||||||||||
(In thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Real estate
|
$
|
534,854
|
|
|
$
|
466,703
|
|
|
$
|
51,467
|
|
|
$
|
24,341
|
|
Energy
|
108,830
|
|
|
152,056
|
|
|
(25,124
|
)
|
|
18,136
|
|
||||
Arbitrage
|
69,417
|
|
|
282,335
|
|
|
(3,925
|
)
|
|
15,270
|
|
||||
Other
|
427,117
|
|
|
310,307
|
|
|
28,420
|
|
|
77,485
|
|
||||
Total
|
$
|
1,140,218
|
|
|
$
|
1,211,401
|
|
|
$
|
50,838
|
|
|
$
|
135,232
|
|
|
Carrying Value
|
||||||
|
September 30,
|
|
December 31,
|
||||
(In thousands)
|
2015
|
|
2014
|
||||
Properties in operation
|
$
|
226,930
|
|
|
$
|
196,980
|
|
Properties under development
|
646,979
|
|
|
534,632
|
|
||
Total
|
$
|
873,909
|
|
|
$
|
731,612
|
|
(In thousands)
|
September 30, 2015
|
|
December 31, 2014
|
||||
Amortized cost:
|
|
|
|
||||
Real estate loans
|
$
|
203,064
|
|
|
$
|
243,407
|
|
Commercial loans
|
83,209
|
|
|
78,605
|
|
||
Total
|
$
|
286,273
|
|
|
$
|
322,012
|
|
|
|
|
|
||||
Fair value:
|
|
|
|
||||
Real estate loans
|
$
|
204,350
|
|
|
$
|
245,112
|
|
Commercial loans
|
84,711
|
|
|
80,107
|
|
||
Total
|
$
|
289,061
|
|
|
$
|
325,219
|
|
|
|
|
|
||||
Valuation allowance:
|
|
|
|
||||
Specific
|
$
|
75
|
|
|
$
|
115
|
|
General
|
2,330
|
|
|
2,371
|
|
||
Total
|
$
|
2,405
|
|
|
$
|
2,486
|
|
|
|
|
|
||||
|
For the Three Months
Ended September 30,
|
||||||
|
|||||||
|
2015
|
|
2014
|
||||
Increase (decrease) in valuation allowance
|
$
|
19
|
|
|
$
|
(24
|
)
|
Loans receivable charged off
|
—
|
|
|
—
|
|
||
|
|
|
|
||||
|
For the Nine Months
Ended September 30,
|
||||||
|
|||||||
|
2015
|
|
2014
|
||||
Increase (decrease) in valuation allowance
|
$
|
(81
|
)
|
|
$
|
455
|
|
Loans receivable charged off
|
—
|
|
|
—
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30:
|
||||||||||||
(In thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Realized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
||||||
Gains
|
$
|
1,341
|
|
|
$
|
13,803
|
|
|
$
|
8,178
|
|
|
$
|
17,263
|
|
Losses
|
(2,171
|
)
|
|
(2,208
|
)
|
|
(2,810
|
)
|
|
(3,727
|
)
|
||||
Equity securities available for sale
|
(21
|
)
|
|
9,729
|
|
|
9,639
|
|
|
39,310
|
|
||||
Investment funds
|
70,648
|
|
|
50,919
|
|
|
92,821
|
|
|
95,675
|
|
||||
Real estate
|
—
|
|
|
15
|
|
|
—
|
|
|
85,659
|
|
||||
Other
|
(3,378
|
)
|
|
—
|
|
|
5,192
|
|
|
—
|
|
||||
Total
|
66,419
|
|
|
72,258
|
|
|
113,020
|
|
|
234,180
|
|
||||
Net of other-than-temporary impairments:
|
|
|
|
|
|
|
|
||||||||
Other-than-temporary impairments
|
(12,515
|
)
|
|
—
|
|
|
(12,515
|
)
|
|
—
|
|
||||
Income tax expense
|
(18,866
|
)
|
|
(25,290
|
)
|
|
(35,177
|
)
|
|
(81,963
|
)
|
||||
Total after-tax realized investment gains
|
$
|
35,038
|
|
|
$
|
46,968
|
|
|
$
|
65,328
|
|
|
$
|
152,217
|
|
Change in unrealized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities
|
$
|
2,449
|
|
|
$
|
10,722
|
|
|
$
|
(102,863
|
)
|
|
$
|
190,242
|
|
Previously impaired fixed maturity securities
|
50
|
|
|
188
|
|
|
73
|
|
|
941
|
|
||||
Equity securities available for sale
|
(2,353
|
)
|
|
(27,548
|
)
|
|
(15,977
|
)
|
|
(19,215
|
)
|
||||
Investment funds
|
(7,876
|
)
|
|
(8,391
|
)
|
|
(16,417
|
)
|
|
(8,317
|
)
|
||||
Total change in unrealized investment gains (losses)
|
(7,730
|
)
|
|
(25,029
|
)
|
|
(135,184
|
)
|
|
163,651
|
|
||||
Income tax benefit (expense)
|
12,229
|
|
|
12,117
|
|
|
56,354
|
|
|
(55,419
|
)
|
||||
Noncontrolling interests
|
94
|
|
|
(82
|
)
|
|
106
|
|
|
(119
|
)
|
||||
Total after-tax unrealized gains (losses)
|
$
|
4,593
|
|
|
$
|
(12,994
|
)
|
|
$
|
(78,724
|
)
|
|
$
|
108,113
|
|
|
Less Than 12 Months
|
|
12 Months or Greater
|
|
Total
|
||||||||||||||||||
(In thousands)
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and government agency
|
$
|
18,390
|
|
|
$
|
222
|
|
|
$
|
68,963
|
|
|
$
|
1,254
|
|
|
$
|
87,353
|
|
|
$
|
1,476
|
|
State and municipal
|
543,568
|
|
|
7,670
|
|
|
110,634
|
|
|
2,595
|
|
|
654,202
|
|
|
10,265
|
|
||||||
Mortgage-backed securities
|
115,152
|
|
|
889
|
|
|
200,490
|
|
|
6,230
|
|
|
315,642
|
|
|
7,119
|
|
||||||
Corporate
|
1,782,625
|
|
|
28,626
|
|
|
155,263
|
|
|
13,859
|
|
|
1,937,888
|
|
|
42,485
|
|
||||||
Foreign
|
96,348
|
|
|
11,117
|
|
|
22,355
|
|
|
4,960
|
|
|
118,703
|
|
|
16,077
|
|
||||||
Fixed maturity securities
|
2,556,083
|
|
|
48,524
|
|
|
557,705
|
|
|
28,898
|
|
|
3,113,788
|
|
|
77,422
|
|
||||||
Common stocks
|
24,109
|
|
|
21,352
|
|
|
8,112
|
|
|
902
|
|
|
32,221
|
|
|
22,254
|
|
||||||
Preferred stocks
|
4,791
|
|
|
396
|
|
|
22,280
|
|
|
3,394
|
|
|
27,071
|
|
|
3,790
|
|
||||||
Equity securities
|
28,900
|
|
|
21,748
|
|
|
30,392
|
|
|
4,296
|
|
|
59,292
|
|
|
26,044
|
|
||||||
Total
|
$
|
2,584,983
|
|
|
$
|
70,272
|
|
|
$
|
588,097
|
|
|
$
|
33,194
|
|
|
$
|
3,173,080
|
|
|
$
|
103,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and government agency
|
$
|
84,750
|
|
|
$
|
522
|
|
|
$
|
84,850
|
|
|
$
|
2,635
|
|
|
$
|
169,600
|
|
|
$
|
3,157
|
|
State and municipal
|
158,594
|
|
|
631
|
|
|
150,284
|
|
|
3,389
|
|
|
308,878
|
|
|
4,020
|
|
||||||
Mortgage-backed securities
|
75,739
|
|
|
332
|
|
|
312,922
|
|
|
9,169
|
|
|
388,661
|
|
|
9,501
|
|
||||||
Corporate
|
1,586,238
|
|
|
8,697
|
|
|
214,628
|
|
|
16,084
|
|
|
1,800,866
|
|
|
24,781
|
|
||||||
Foreign
|
76,471
|
|
|
3,907
|
|
|
85,025
|
|
|
14,158
|
|
|
161,496
|
|
|
18,065
|
|
||||||
Fixed maturity securities
|
1,981,792
|
|
|
14,089
|
|
|
847,709
|
|
|
45,435
|
|
|
2,829,501
|
|
|
59,524
|
|
||||||
Common stocks
|
15,929
|
|
|
5,453
|
|
|
—
|
|
|
—
|
|
|
15,929
|
|
|
5,453
|
|
||||||
Preferred stocks
|
27,126
|
|
|
1,139
|
|
|
22,648
|
|
|
3,026
|
|
|
49,774
|
|
|
4,165
|
|
||||||
Equity securities
|
43,055
|
|
|
6,592
|
|
|
22,648
|
|
|
3,026
|
|
|
65,703
|
|
|
9,618
|
|
||||||
Total
|
$
|
2,024,847
|
|
|
$
|
20,681
|
|
|
$
|
870,357
|
|
|
$
|
48,461
|
|
|
$
|
2,895,204
|
|
|
$
|
69,142
|
|
($ in thousands)
|
Number of
Securities
|
|
Aggregate
Fair Value
|
|
Gross
Unrealized
Loss
|
|||||
Mortgage-backed securities
|
7
|
|
|
$
|
23,109
|
|
|
$
|
1,530
|
|
Corporate
|
17
|
|
|
147,430
|
|
|
9,428
|
|
||
Foreign government
|
4
|
|
|
26,277
|
|
|
5,305
|
|
||
Total
|
28
|
|
|
$
|
196,816
|
|
|
$
|
16,263
|
|
(In thousands)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
September 30, 2015
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. government and government agency
|
$
|
672,968
|
|
|
$
|
—
|
|
|
$
|
672,968
|
|
|
$
|
—
|
|
State and municipal
|
4,423,757
|
|
|
—
|
|
|
4,423,757
|
|
|
—
|
|
||||
Mortgage-backed securities
|
1,127,624
|
|
|
—
|
|
|
1,127,624
|
|
|
—
|
|
||||
Corporate
|
5,158,211
|
|
|
—
|
|
|
5,158,057
|
|
|
154
|
|
||||
Foreign government
|
884,669
|
|
|
—
|
|
|
884,669
|
|
|
—
|
|
||||
Total fixed maturity securities available for sale
|
12,267,229
|
|
|
—
|
|
|
12,267,075
|
|
|
154
|
|
||||
Equity securities available for sale:
|
|
|
|
|
|
|
|
||||||||
Common stocks
|
42,128
|
|
|
33,709
|
|
|
—
|
|
|
8,419
|
|
||||
Preferred stocks
|
135,749
|
|
|
—
|
|
|
132,125
|
|
|
3,624
|
|
||||
Total equity securities available for sale
|
177,877
|
|
|
33,709
|
|
|
132,125
|
|
|
12,043
|
|
||||
Arbitrage trading account
|
351,179
|
|
|
226,115
|
|
|
124,464
|
|
|
600
|
|
||||
Total
|
$
|
12,796,285
|
|
|
$
|
259,824
|
|
|
$
|
12,523,664
|
|
|
$
|
12,797
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Securities sold but not yet purchased
|
$
|
33,360
|
|
|
$
|
33,336
|
|
|
$
|
24
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2014
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. government and government agency
|
$
|
803,388
|
|
|
$
|
—
|
|
|
$
|
803,388
|
|
|
$
|
—
|
|
State and municipal
|
4,362,996
|
|
|
—
|
|
|
4,362,996
|
|
|
—
|
|
||||
Mortgage-backed securities
|
1,295,636
|
|
|
—
|
|
|
1,295,636
|
|
|
—
|
|
||||
Corporate
|
5,200,137
|
|
|
—
|
|
|
5,179,372
|
|
|
20,765
|
|
||||
Foreign government
|
941,826
|
|
|
—
|
|
|
941,826
|
|
|
—
|
|
||||
Total fixed maturity securities available for sale
|
12,603,983
|
|
|
—
|
|
|
12,583,218
|
|
|
20,765
|
|
||||
Equity securities available for sale:
|
|
|
|
|
|
|
|
||||||||
Common stocks
|
76,346
|
|
|
65,605
|
|
|
—
|
|
|
10,741
|
|
||||
Preferred stocks
|
94,645
|
|
|
—
|
|
|
90,932
|
|
|
3,713
|
|
||||
Total equity securities available for sale
|
170,991
|
|
|
65,605
|
|
|
90,932
|
|
|
14,454
|
|
||||
Arbitrage trading account
|
450,648
|
|
|
295,047
|
|
|
154,881
|
|
|
720
|
|
||||
Total
|
$
|
13,225,622
|
|
|
$
|
360,652
|
|
|
$
|
12,829,031
|
|
|
$
|
35,939
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Securities sold but not yet purchased
|
$
|
106,079
|
|
|
$
|
106,074
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
Gains (Losses) Included in:
|
||||||||||||||||||||||||||||||||||
(In thousands)
|
Beginning
Balance
|
|
Earnings
|
|
Other
Comprehensive
Income
|
|
Impairments
|
|
Purchases
|
|
(Sales)
|
|
Paydowns / Maturities
|
|
Transfers
|
|
Ending
Balance
|
||||||||||||||||||
In / (Out)
|
|||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Fixed maturities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Corporate
|
$
|
20,765
|
|
|
$
|
15
|
|
|
$
|
180
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,673
|
)
|
|
$
|
(19,133
|
)
|
|
$
|
154
|
|
Total
|
20,765
|
|
|
15
|
|
|
180
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,673
|
)
|
|
(19,133
|
)
|
|
154
|
|
|||||||||
Equity securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Common stocks
|
10,741
|
|
|
—
|
|
|
9
|
|
|
(2,331
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,419
|
|
|||||||||
Preferred stocks
|
3,713
|
|
|
(89
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,624
|
|
|||||||||
Total
|
14,454
|
|
|
(89
|
)
|
|
9
|
|
|
(2,331
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,043
|
|
|||||||||
Arbitrage trading account
|
720
|
|
|
(375
|
)
|
|
—
|
|
|
—
|
|
|
72,640
|
|
|
(71,921
|
)
|
|
—
|
|
|
(464
|
)
|
|
600
|
|
|||||||||
Total
|
$
|
35,939
|
|
|
$
|
(449
|
)
|
|
$
|
189
|
|
|
$
|
(2,331
|
)
|
|
$
|
72,640
|
|
|
$
|
(71,921
|
)
|
|
$
|
(1,673
|
)
|
|
$
|
(19,597
|
)
|
|
$
|
12,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Securities sold but not yet purchased
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Year ended December 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Fixed maturities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Corporate
|
$
|
42,864
|
|
|
$
|
47
|
|
|
$
|
(3,711
|
)
|
|
$
|
—
|
|
|
$
|
238
|
|
|
$
|
(15,244
|
)
|
|
$
|
(3,429
|
)
|
|
$
|
—
|
|
|
$
|
20,765
|
|
Total
|
42,864
|
|
|
47
|
|
|
(3,711
|
)
|
|
—
|
|
|
238
|
|
|
(15,244
|
)
|
|
(3,429
|
)
|
|
—
|
|
|
20,765
|
|
|||||||||
Equity securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Common stocks
|
1,238
|
|
|
—
|
|
|
(911
|
)
|
|
—
|
|
|
11,343
|
|
|
(929
|
)
|
|
—
|
|
|
—
|
|
|
10,741
|
|
|||||||||
Preferred stocks
|
3,752
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
3,430
|
|
|
(3,452
|
)
|
|
—
|
|
|
—
|
|
|
3,713
|
|
|||||||||
Total
|
4,990
|
|
|
(17
|
)
|
|
(911
|
)
|
|
—
|
|
|
14,773
|
|
|
(4,381
|
)
|
|
—
|
|
|
—
|
|
|
14,454
|
|
|||||||||
Arbitrage trading account
|
1,780
|
|
|
2,274
|
|
|
—
|
|
|
—
|
|
|
4,942
|
|
|
(14,073
|
)
|
|
—
|
|
|
5,797
|
|
|
720
|
|
|||||||||
Total
|
$
|
49,634
|
|
|
$
|
2,304
|
|
|
$
|
(4,622
|
)
|
|
$
|
—
|
|
|
$
|
19,953
|
|
|
$
|
(33,698
|
)
|
|
$
|
(3,429
|
)
|
|
$
|
5,797
|
|
|
$
|
35,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Securities sold but not yet purchased
|
$
|
—
|
|
|
$
|
(20
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31
|
|
|
$
|
(11
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||
(In thousands)
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities
|
$
|
12,368,319
|
|
|
$
|
12,386,845
|
|
|
$
|
12,705,160
|
|
|
$
|
12,725,806
|
|
Equity securities available for sale
|
177,877
|
|
|
177,877
|
|
|
170,991
|
|
|
170,991
|
|
||||
Arbitrage trading account
|
351,179
|
|
|
351,179
|
|
|
450,648
|
|
|
450,648
|
|
||||
Loans receivable
|
286,273
|
|
|
289,061
|
|
|
322,012
|
|
|
325,219
|
|
||||
Cash and cash equivalents
|
879,934
|
|
|
879,934
|
|
|
674,441
|
|
|
674,441
|
|
||||
Trading account receivables from brokers and clearing organizations
|
401,941
|
|
|
401,941
|
|
|
371,034
|
|
|
371,034
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Due to broker
|
64,343
|
|
|
64,343
|
|
|
23,133
|
|
|
23,133
|
|
||||
Trading account securities sold but not yet purchased
|
33,360
|
|
|
33,360
|
|
|
106,079
|
|
|
106,079
|
|
||||
Subordinated debentures
|
340,255
|
|
|
343,000
|
|
|
340,060
|
|
|
332,640
|
|
||||
Senior notes and other debt
|
1,838,965
|
|
|
2,047,134
|
|
|
2,115,527
|
|
|
2,344,292
|
|
|
For the Three Months
|
|
For the Nine Months
|
||||||||||||
|
Ended September 30,
|
|
Ended September 30,
|
||||||||||||
(In thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Written premiums:
|
|
|
|
|
|
|
|
||||||||
Direct
|
$
|
1,601,344
|
|
|
$
|
1,553,493
|
|
|
$
|
4,852,584
|
|
|
$
|
4,699,319
|
|
Assumed
|
221,237
|
|
|
225,863
|
|
|
633,200
|
|
|
657,704
|
|
||||
Ceded
|
(251,544
|
)
|
|
(253,974
|
)
|
|
(795,420
|
)
|
|
(815,985
|
)
|
||||
Total net premiums written
|
$
|
1,571,037
|
|
|
$
|
1,525,382
|
|
|
$
|
4,690,364
|
|
|
$
|
4,541,038
|
|
|
|
|
|
|
|
|
|
||||||||
Earned premiums:
|
|
|
|
|
|
|
|
||||||||
Direct
|
$
|
1,575,624
|
|
|
$
|
1,505,738
|
|
|
$
|
4,646,343
|
|
|
$
|
4,336,463
|
|
Assumed
|
217,668
|
|
|
216,889
|
|
|
632,362
|
|
|
667,566
|
|
||||
Ceded
|
(261,734
|
)
|
|
(261,823
|
)
|
|
(782,093
|
)
|
|
(761,968
|
)
|
||||
Total net premiums earned
|
$
|
1,531,558
|
|
|
$
|
1,460,804
|
|
|
$
|
4,496,612
|
|
|
$
|
4,242,061
|
|
|
|
|
|
|
|
|
|
||||||||
Ceded losses incurred
|
$
|
123,765
|
|
|
$
|
128,903
|
|
|
$
|
374,084
|
|
|
$
|
319,156
|
|
Ceded commissions earned
|
$
|
45,946
|
|
|
$
|
40,821
|
|
|
$
|
129,766
|
|
|
$
|
116,047
|
|
($ in thousands)
|
Units
|
|
Fair Value
|
|||
Nine months ended September 30,
|
|
|
|
|||
2015
|
971,457
|
|
|
$
|
54,439
|
|
2014
|
1,135,900
|
|
|
$
|
50,791
|
|
•
|
Insurance-Domestic
- commercial insurance business, including excess and surplus lines and admitted lines, primarily throughout the United States;
|
•
|
Insurance-International
- insurance business primarily in the United Kingdom, Continental Europe, South America, Canada, Scandinavia, and Australia; and
|
•
|
Reinsurance-Global
- reinsurance business on a facultative and treaty basis, primarily in the United States, United Kingdom, Continental Europe, Australia, and the Asia-Pacific Region.
|
|
Revenues
|
|
|
|
|
||||||||||||||||||
(In thousands)
|
Earned
Premiums
|
|
Investment
Income
|
|
Other
|
|
Total
|
|
Pre-Tax
Income
(Loss)
|
|
Net Income
(Loss) to Common Stockholders
|
||||||||||||
Three months ended September 30, 2015:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Insurance-Domestic
|
$
|
1,181,923
|
|
|
$
|
93,394
|
|
|
$
|
23,021
|
|
|
$
|
1,298,338
|
|
|
$
|
191,582
|
|
|
$
|
130,445
|
|
Insurance-International
|
197,578
|
|
|
13,595
|
|
|
—
|
|
|
211,173
|
|
|
12,527
|
|
|
9,001
|
|
||||||
Reinsurance-Global
|
152,057
|
|
|
19,468
|
|
|
—
|
|
|
171,525
|
|
|
22,413
|
|
|
15,807
|
|
||||||
Corporate and eliminations (1)
|
—
|
|
|
6,757
|
|
|
119,260
|
|
|
126,017
|
|
|
(51,506
|
)
|
|
(37,684
|
)
|
||||||
Net investment gains
|
—
|
|
|
—
|
|
|
53,904
|
|
|
53,904
|
|
|
53,904
|
|
|
35,038
|
|
||||||
Total
|
$
|
1,531,558
|
|
|
$
|
133,214
|
|
|
$
|
196,185
|
|
|
$
|
1,860,957
|
|
|
$
|
228,920
|
|
|
$
|
152,607
|
|
Three months ended September 30, 2014:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Insurance-Domestic
|
$
|
1,093,554
|
|
|
$
|
125,792
|
|
|
$
|
26,408
|
|
|
$
|
1,245,754
|
|
|
$
|
228,359
|
|
|
$
|
154,718
|
|
Insurance-International
|
205,529
|
|
|
19,957
|
|
|
—
|
|
|
225,486
|
|
|
12,603
|
|
|
9,217
|
|
||||||
Reinsurance-Global
|
161,721
|
|
|
26,916
|
|
|
—
|
|
|
188,637
|
|
|
29,005
|
|
|
20,207
|
|
||||||
Corporate and eliminations (1)
|
—
|
|
|
6,560
|
|
|
101,910
|
|
|
108,470
|
|
|
(63,772
|
)
|
|
(42,571
|
)
|
||||||
Net investment gains
|
—
|
|
|
—
|
|
|
72,258
|
|
|
72,258
|
|
|
72,258
|
|
|
46,968
|
|
||||||
Total
|
$
|
1,460,804
|
|
|
$
|
179,225
|
|
|
$
|
200,576
|
|
|
$
|
1,840,605
|
|
|
$
|
278,453
|
|
|
$
|
188,539
|
|
Nine months ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Insurance-Domestic
|
$
|
3,459,118
|
|
|
$
|
269,160
|
|
|
$
|
72,981
|
|
|
$
|
3,801,259
|
|
|
$
|
534,401
|
|
|
$
|
365,933
|
|
Insurance-International
|
583,041
|
|
|
40,177
|
|
|
—
|
|
|
623,218
|
|
|
41,347
|
|
|
29,648
|
|
||||||
Reinsurance-Global
|
454,453
|
|
|
54,575
|
|
|
—
|
|
|
509,028
|
|
|
69,797
|
|
|
49,134
|
|
||||||
Corporate and eliminations (1)
|
—
|
|
|
21,124
|
|
|
340,267
|
|
|
361,391
|
|
|
(170,226
|
)
|
|
(116,094
|
)
|
||||||
Net investment gains
|
—
|
|
|
—
|
|
|
100,505
|
|
|
100,505
|
|
|
100,505
|
|
|
65,328
|
|
||||||
Total
|
$
|
4,496,612
|
|
|
$
|
385,036
|
|
|
$
|
513,753
|
|
|
$
|
5,395,401
|
|
|
$
|
575,824
|
|
|
$
|
393,949
|
|
Nine months ended September 30, 2014:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Insurance-Domestic
|
$
|
3,138,806
|
|
|
$
|
347,002
|
|
|
$
|
82,159
|
|
|
$
|
3,567,967
|
|
|
$
|
607,399
|
|
|
$
|
414,588
|
|
Insurance-International
|
592,721
|
|
|
47,885
|
|
|
—
|
|
|
640,606
|
|
|
41,860
|
|
|
29,938
|
|
||||||
Reinsurance-Global
|
510,534
|
|
|
72,102
|
|
|
—
|
|
|
582,636
|
|
|
86,945
|
|
|
60,624
|
|
||||||
Corporate and eliminations (1)
|
—
|
|
|
19,676
|
|
|
299,435
|
|
|
319,111
|
|
|
(180,892
|
)
|
|
(119,194
|
)
|
||||||
Net investment gains
|
—
|
|
|
—
|
|
|
234,180
|
|
|
234,180
|
|
|
234,180
|
|
|
152,217
|
|
||||||
Total
|
$
|
4,242,061
|
|
|
$
|
486,665
|
|
|
$
|
615,774
|
|
|
$
|
5,344,500
|
|
|
$
|
789,492
|
|
|
$
|
538,173
|
|
(In thousands)
|
September 30, 2015
|
|
December 31, 2014
|
||||
Insurance-Domestic
|
$
|
16,298,153
|
|
|
$
|
16,036,513
|
|
Insurance-International
|
1,821,712
|
|
|
1,876,347
|
|
||
Reinsurance-Global
|
2,482,325
|
|
|
2,708,090
|
|
||
Corporate and eliminations
|
1,136,376
|
|
|
1,058,289
|
|
||
Total
|
$
|
21,738,566
|
|
|
$
|
21,679,239
|
|
|
For the Three Months
|
|
For the Nine Months
|
||||||||||||
|
Ended September 30,
|
|
Ended September 30,
|
||||||||||||
(In thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Insurance-Domestic:
|
|
|
|
|
|
|
|
||||||||
Other liability
|
$
|
395,400
|
|
|
$
|
368,818
|
|
|
$
|
1,146,884
|
|
|
$
|
1,070,525
|
|
Workers’ compensation
|
322,896
|
|
|
291,297
|
|
|
940,636
|
|
|
824,541
|
|
||||
Short-tail lines
|
230,733
|
|
|
222,561
|
|
|
687,626
|
|
|
642,833
|
|
||||
Commercial automobile
|
138,483
|
|
|
134,197
|
|
|
411,951
|
|
|
385,667
|
|
||||
Professional liability
|
94,411
|
|
|
76,681
|
|
|
272,021
|
|
|
215,240
|
|
||||
Total
|
1,181,923
|
|
|
1,093,554
|
|
|
3,459,118
|
|
|
3,138,806
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Insurance-International:
|
|
|
|
|
|
|
|
||||||||
Other liability
|
22,733
|
|
|
27,705
|
|
|
69,527
|
|
|
70,036
|
|
||||
Workers’ compensation
|
24,849
|
|
|
18,012
|
|
|
69,643
|
|
|
52,578
|
|
||||
Short-tail lines
|
96,624
|
|
|
100,417
|
|
|
285,980
|
|
|
303,119
|
|
||||
Commercial automobile
|
32,177
|
|
|
29,076
|
|
|
94,278
|
|
|
86,318
|
|
||||
Professional liability
|
21,195
|
|
|
30,319
|
|
|
63,613
|
|
|
80,670
|
|
||||
Total
|
197,578
|
|
|
205,529
|
|
|
583,041
|
|
|
592,721
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reinsurance-Global:
|
|
|
|
|
|
|
|
||||||||
Casualty
|
103,198
|
|
|
122,741
|
|
|
314,462
|
|
|
372,894
|
|
||||
Property
|
48,859
|
|
|
38,980
|
|
|
139,991
|
|
|
137,640
|
|
||||
Total
|
152,057
|
|
|
161,721
|
|
|
454,453
|
|
|
510,534
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total
|
$
|
1,531,558
|
|
|
$
|
1,460,804
|
|
|
$
|
4,496,612
|
|
|
$
|
4,242,061
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
(In thousands)
|
2015
|
|
2014
|
||||
Insurance-Domestic
|
$
|
7,086,421
|
|
|
$
|
6,767,374
|
|
Insurance-International
|
743,905
|
|
|
750,613
|
|
||
Reinsurance-Global
|
1,395,795
|
|
|
1,452,654
|
|
||
Net reserves for losses and loss expenses
|
9,226,121
|
|
|
8,970,641
|
|
||
Ceded reserves for losses and loss expenses
|
1,434,933
|
|
|
1,399,060
|
|
||
Gross reserves for losses and loss expenses
|
$
|
10,661,054
|
|
|
$
|
10,369,701
|
|
(In thousands)
|
Reported Case
Reserves
|
|
Incurred But
Not Reported
|
|
Total
|
||||||
September 30, 2015
|
|
|
|
|
|
||||||
Other liability
|
$
|
1,065,529
|
|
|
$
|
1,854,890
|
|
|
$
|
2,920,419
|
|
Workers’ compensation (1)
|
1,654,042
|
|
|
1,266,311
|
|
|
2,920,353
|
|
|||
Professional liability
|
293,527
|
|
|
477,608
|
|
|
771,135
|
|
|||
Commercial automobile
|
344,095
|
|
|
244,143
|
|
|
588,238
|
|
|||
Short-tail lines
|
334,200
|
|
|
295,981
|
|
|
630,181
|
|
|||
Total primary
|
3,691,393
|
|
|
4,138,933
|
|
|
7,830,326
|
|
|||
Reinsurance (1)
|
615,198
|
|
|
780,597
|
|
|
1,395,795
|
|
|||
Total
|
$
|
4,306,591
|
|
|
$
|
4,919,530
|
|
|
$
|
9,226,121
|
|
|
|
|
|
|
|
||||||
December 31, 2014
|
|
|
|
|
|
||||||
Other liability
|
$
|
1,035,442
|
|
|
$
|
1,785,598
|
|
|
$
|
2,821,040
|
|
Workers’ compensation (1)
|
1,603,310
|
|
|
1,201,117
|
|
|
2,804,427
|
|
|||
Professional liability
|
308,887
|
|
|
453,557
|
|
|
762,444
|
|
|||
Commercial automobile
|
319,700
|
|
|
203,085
|
|
|
522,785
|
|
|||
Short-tail lines
|
330,010
|
|
|
277,281
|
|
|
607,291
|
|
|||
Total primary
|
3,597,349
|
|
|
3,920,638
|
|
|
7,517,987
|
|
|||
Reinsurance (1)
|
603,851
|
|
|
848,803
|
|
|
1,452,654
|
|
|||
Total
|
$
|
4,201,200
|
|
|
$
|
4,769,441
|
|
|
$
|
8,970,641
|
|
(In thousands)
|
2015
|
|
2014
|
||||
Net decrease in prior year loss reserves
|
$
|
39,095
|
|
|
$
|
55,219
|
|
Increase in prior year earned premiums
|
9,733
|
|
|
7,098
|
|
||
Net favorable prior year development
|
$
|
48,828
|
|
|
$
|
62,317
|
|
($ in thousands)
|
Number of
Securities
|
|
Aggregate
Fair Value
|
|
Unrealized
Loss
|
|||||
Unrealized loss less than 20% of amortized cost
|
400
|
|
|
$
|
3,048,625
|
|
|
$
|
55,882
|
|
Unrealized loss of 20% or greater of amortized cost:
|
|
|
|
|
|
|||||
Less than twelve months
|
7
|
|
|
10,177
|
|
|
4,402
|
|
||
Twelve months and longer
|
20
|
|
|
54,986
|
|
|
17,138
|
|
||
Total
|
427
|
|
|
$
|
3,113,788
|
|
|
$
|
77,422
|
|
($ in thousands)
|
Number of
Securities
|
|
Aggregate
Fair Value
|
|
Unrealized
Loss
|
|||||
Mortgage-backed securities
|
7
|
|
|
$
|
23,109
|
|
|
$
|
1,530
|
|
Corporate
|
17
|
|
|
147,430
|
|
|
9,428
|
|
||
Foreign government
|
4
|
|
|
26,277
|
|
|
5,305
|
|
||
Total
|
28
|
|
|
$
|
196,816
|
|
|
$
|
16,263
|
|
(In thousands)
|
Carrying
Value
|
|
Percent
of Total
|
|||
Pricing source:
|
|
|
|
|||
Independent pricing services
|
$
|
12,023,492
|
|
|
98.0
|
%
|
Syndicate manager
|
58,198
|
|
|
0.5
|
|
|
Directly by the Company based on:
|
|
|
|
|||
Observable data
|
185,385
|
|
|
1.5
|
|
|
Cash flow model
|
154
|
|
|
* -
|
||
Total
|
$
|
12,267,229
|
|
|
100.0
|
%
|
($ in thousands)
|
2015
|
|
2014
|
||||
Insurance-Domestic:
|
|
|
|
||||
Gross premiums written
|
$
|
4,289,042
|
|
|
$
|
4,087,752
|
|
Net premiums written
|
3,644,959
|
|
|
3,432,803
|
|
||
Net premiums earned
|
3,459,118
|
|
|
3,138,806
|
|
||
Loss ratio
|
61.5
|
%
|
|
60.2
|
%
|
||
Expense ratio
|
31.2
|
%
|
|
32.0
|
%
|
||
GAAP combined ratio
|
92.7
|
%
|
|
92.2
|
%
|
||
Insurance-International:
|
|
|
|
||||
Gross premiums written
|
$
|
713,561
|
|
|
$
|
747,639
|
|
Net premiums written
|
593,585
|
|
|
620,025
|
|
||
Net premiums earned
|
583,041
|
|
|
592,721
|
|
||
Loss ratio
|
58.2
|
%
|
|
60.9
|
%
|
||
Expense ratio
|
41.4
|
%
|
|
39.9
|
%
|
||
GAAP combined ratio
|
99.6
|
%
|
|
100.8
|
%
|
||
Reinsurance-Global:
|
|
|
|
||||
Gross premiums written
|
$
|
483,181
|
|
|
$
|
521,633
|
|
Net premiums written
|
451,820
|
|
|
488,210
|
|
||
Net premiums earned
|
454,453
|
|
|
510,534
|
|
||
Loss ratio
|
58.9
|
%
|
|
64.2
|
%
|
||
Expense ratio
|
37.8
|
%
|
|
32.9
|
%
|
||
GAAP combined ratio
|
96.7
|
%
|
|
97.1
|
%
|
||
Consolidated:
|
|
|
|
||||
Gross premiums written
|
$
|
5,485,784
|
|
|
$
|
5,357,024
|
|
Net premiums written
|
4,690,364
|
|
|
4,541,038
|
|
||
Net premiums earned
|
4,496,612
|
|
|
4,242,061
|
|
||
Loss ratio
|
60.8
|
%
|
|
60.7
|
%
|
||
Expense ratio
|
33.2
|
%
|
|
33.2
|
%
|
||
GAAP combined ratio
|
94.0
|
%
|
|
93.9
|
%
|
(In thousands, except per share data)
|
2015
|
|
2014
|
||||
Net income to common stockholders
|
$
|
393,949
|
|
|
$
|
538,173
|
|
Weighted average diluted shares
|
130,563
|
|
|
133,886
|
|
||
Net income per diluted share
|
$
|
3.02
|
|
|
$
|
4.02
|
|
•
|
Insurance-Domestic gross premiums increased 5% to $4,289 million in 2015 from $4,088 million in 2014. Gross premiums increased $81 million (7%) for workers' compensation, $57 million (4%) for other liability, $43 million (12%) for professional liability, $16 million (2%) for short-tail lines and $4 million (1%) for commercial auto.
|
•
|
Insurance-International gross premiums decreased 5% to $714 million in 2015 from $748 million in 2014. Gross premiums increased $18 million (34%) for workers' compensation, $10 million (11%) for other liability and $7 million (7%) for commercial auto. Insurance-International gross premiums decreased $52 million (12%) for short-tail lines and $17 million (19%) for professional liability. In local currency terms, Insurance-International gross premiums increased 7% in 2015.
|
•
|
Reinsurance-Global gross premiums decreased 7% to $483 million in 2015 from $522 million in 2014, due to increasingly competitive conditions. Gross premiums written decreased $31 million (9%) for casualty lines and $7 million (4%) for property lines.
|
|
Amount
|
|
Average Annualized
Yield
|
||||||||||
(In thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||
Fixed maturity securities, including cash and cash equivalents and loans receivable
|
$
|
318,095
|
|
|
$
|
331,947
|
|
|
3.3
|
%
|
|
3.5
|
%
|
Investment funds
|
50,838
|
|
|
135,232
|
|
|
5.6
|
|
|
18.0
|
|
||
Arbitrage trading account
|
11,470
|
|
|
12,508
|
|
|
2.7
|
|
|
2.8
|
|
||
Real estate
|
9,270
|
|
|
9,207
|
|
|
1.6
|
|
|
1.5
|
|
||
Equity securities available for sale
|
3,513
|
|
|
5,418
|
|
|
2.8
|
|
|
3.8
|
|
||
Gross investment income
|
393,186
|
|
|
494,312
|
|
|
3.3
|
|
|
4.3
|
|
||
Investment expenses
|
(8,150
|
)
|
|
(7,647
|
)
|
|
|
|
|
||||
Total
|
$
|
385,036
|
|
|
$
|
486,665
|
|
|
3.2
|
|
|
4.3
|
|
•
|
Insurance-Domestic - The loss ratio of 61.5% in 2015 was 1.3 points higher than the loss ratio of 60.2% in 2014. Catastrophe losses were $41 million in 2015 compared with $59 million in 2014. Favorable prior year reserve development was $36 million in 2015 compared with $72 million in 2014, a difference of 1.3 loss ratio points. The loss ratio excluding catastrophe losses and prior year reserve development increased 0.7 points to 61.3% in 2015 from 60.6% in 2014.
|
•
|
Insurance-International - The loss ratio of 58.2% in 2015 was 2.7 points lower than the loss ratio of 60.9% in 2014. Catastrophe losses were $2 million in 2015 compared with $9 million in 2014. Favorable prior year reserve development was $5 million in 2015 compared with unfavorable prior year development of $10 million in 2014, a difference of 2.6 loss ratio points. The loss ratio excluding catastrophe losses and prior year reserve development increased 0.9 points to 58.7% in 2015 from 57.8% in 2014.
|
•
|
Reinsurance-Global - The loss ratio of 58.9% in 2015 was 5.3 points lower than the loss ratio of 64.2% in 2014. Catastrophe losses were $3 million in 2015 compared with $2 million in 2014. Favorable prior year reserve development was $8 million in 2015 compared with $0.5 million in 2014, a difference of 1.6 loss ratio points. The loss ratio excluding catastrophe losses and prior year reserve development decreased 4.0 points to 60.0% in 2015 from 64.0% in 2014.
|
(In thousands)
|
2015
|
|
2014
|
||||
Underwriting expenses
|
$
|
1,491,109
|
|
|
$
|
1,407,608
|
|
Service expenses
|
93,314
|
|
|
69,130
|
|
||
Net foreign currency gains
|
(3,234
|
)
|
|
(1,018
|
)
|
||
Other costs and expenses
|
116,980
|
|
|
117,899
|
|
||
Total
|
$
|
1,698,169
|
|
|
$
|
1,593,619
|
|
($ in thousands)
|
2015
|
|
2014
|
||||
Insurance-Domestic:
|
|
|
|
||||
Gross premiums written
|
$
|
1,457,943
|
|
|
$
|
1,393,186
|
|
Net premiums written
|
1,248,740
|
|
|
1,182,579
|
|
||
Net premiums earned
|
1,181,923
|
|
|
1,093,554
|
|
||
Loss ratio
|
61.2
|
%
|
|
59.8
|
%
|
||
Expense ratio
|
30.8
|
%
|
|
31.1
|
%
|
||
GAAP combined ratio
|
92.0
|
%
|
|
90.9
|
%
|
||
Insurance-International:
|
|
|
|
||||
Gross premiums written
|
$
|
193,303
|
|
|
$
|
205,253
|
|
Net premiums written
|
163,587
|
|
|
171,582
|
|
||
Net premiums earned
|
197,578
|
|
|
205,529
|
|
||
Loss ratio
|
57.0
|
%
|
|
62.7
|
%
|
||
Expense ratio
|
43.4
|
%
|
|
40.7
|
%
|
||
GAAP combined ratio
|
100.4
|
%
|
|
103.4
|
%
|
||
Reinsurance-Global:
|
|
|
|
||||
Gross premiums written
|
$
|
171,335
|
|
|
$
|
180,917
|
|
Net premiums written
|
158,710
|
|
|
171,221
|
|
||
Net premiums earned
|
152,057
|
|
|
161,721
|
|
||
Loss ratio
|
59.1
|
%
|
|
64.5
|
%
|
||
Expense ratio
|
39.0
|
%
|
|
34.2
|
%
|
||
GAAP combined ratio
|
98.1
|
%
|
|
98.7
|
%
|
||
Consolidated:
|
|
|
|
||||
Gross premiums written
|
$
|
1,822,581
|
|
|
$
|
1,779,356
|
|
Net premiums written
|
1,571,037
|
|
|
1,525,382
|
|
||
Net premiums earned
|
1,531,558
|
|
|
1,460,804
|
|
||
Loss ratio
|
60.5
|
%
|
|
60.7
|
%
|
||
Expense ratio
|
33.2
|
%
|
|
32.8
|
%
|
||
GAAP combined ratio
|
93.7
|
%
|
|
93.5
|
%
|
(In thousands, except per share data)
|
2015
|
|
2014
|
||||
Net income to common stockholders
|
$
|
152,607
|
|
|
$
|
188,539
|
|
Weighted average diluted shares
|
128,947
|
|
|
133,001
|
|
||
Net income per diluted share
|
$
|
1.18
|
|
|
$
|
1.42
|
|
•
|
Insurance-Domestic gross premiums increased 5% to $1,458 million in 2015 from $1,393 million in 2014. Gross premiums increased $34 million (10%) for workers' compensation, $33 million (8%) for other liability and $1 million (1%) for professional liability, and decreased $2 million (1%) for short-tail lines and $1 million (1%) for commercial auto.
|
•
|
Insurance-International gross premiums decreased 6% to $193 million in 2015 from $205 million in 2014. Gross premiums increased $7 million (39%) for workers' compensation and $2 million (8%) for commercial auto. Insurance-International gross premiums decreased $12 million (39%) for professional liability, $6 million (18%) for other liability and $3 million (3%) for short-tail lines. In local currency terms, Insurance-International gross premiums increased 7% in 2015.
|
•
|
Reinsurance-Global gross premiums decreased 5% to $171 million in 2015 from $181 million in 2014, due to increasingly competitive conditions. Gross premiums written decreased $12 million (9%) for casualty lines and increased $2 million (4%) for property lines.
|
|
Amount
|
|
Average Annualized
Yield
|
||||||||||
(In thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||
Fixed maturity securities, including cash and cash equivalents and loans receivable
|
$
|
104,936
|
|
|
$
|
117,289
|
|
|
3.2
|
%
|
|
3.6
|
%
|
Investment funds
|
22,926
|
|
|
59,077
|
|
|
7.9
|
|
|
23.3
|
|
||
Arbitrage trading account
|
2,608
|
|
|
47
|
|
|
2.1
|
|
|
—
|
|
||
Real estate
|
4,389
|
|
|
3,042
|
|
|
2.1
|
|
|
0.8
|
|
||
Equity securities available for sale
|
1,109
|
|
|
1,369
|
|
|
2.6
|
|
|
3.3
|
|
||
Gross investment income
|
135,968
|
|
|
180,824
|
|
|
3.4
|
|
|
4.6
|
|
||
Investment expenses
|
(2,754
|
)
|
|
(1,599
|
)
|
|
|
|
|
||||
Total
|
$
|
133,214
|
|
|
$
|
179,225
|
|
|
3.3
|
|
|
4.6
|
|
•
|
Insurance-Domestic - The loss ratio of 61.2% in 2015 was 1.4 points higher than the loss ratio of 59.8% in 2014. Catastrophe losses were $4 million in 2015 compared with $8 million in 2014. Favorable prior year reserve development was $7 million in 2015 compared with $18 million in 2014, a difference of 1.0 loss ratio point. The loss ratio excluding catastrophe losses and prior year reserve development increased 0.7 points to 61.4% in 2015 from 60.7% in 2014.
|
•
|
Insurance-International - The loss ratio of 57.0% in 2015 was 5.7 points lower than the loss ratio of 62.7% in 2014. Catastrophe losses were $2 million in 2015 compared with $7 million in 2014. Favorable prior year reserve development was $3 million in 2015 compared to unfavorable prior year reserve development of $5 million in 2014, a difference of 3.7 loss ratio points. The loss ratio excluding catastrophe losses and prior year reserve development increased 0.5 points to 57.5% in 2015 from 57.0% in 2014.
|
•
|
Reinsurance-Global - The loss ratio of 59.1% in 2015 was 5.4 points lower than the loss ratio of 64.5% in 2014. Catastrophe losses were $1 million in each of 2015 and 2014. Favorable prior year reserve development was $5 million in 2015 compared with $0.8 million in 2014, a difference of 2.8 loss ratio points. The loss ratio excluding catastrophe losses and prior year reserve development decreased 3.0 points to 61.8% in 2015 from 64.8% in 2014.
|
(In thousands)
|
2015
|
|
2014
|
||||
Underwriting expenses
|
$
|
508,815
|
|
|
$
|
479,174
|
|
Service expenses
|
29,856
|
|
|
23,266
|
|
||
Net foreign currency gains
|
(5,743
|
)
|
|
(2,677
|
)
|
||
Other costs and expenses
|
40,613
|
|
|
44,540
|
|
||
Total
|
$
|
573,541
|
|
|
$
|
544,303
|
|
($ in thousands)
|
Carrying
Value
|
|
Percent
of Total
|
|||
Fixed maturity securities:
|
|
|
|
|||
U.S. government and government agencies
|
$
|
672,968
|
|
|
4.2
|
%
|
State and municipal:
|
|
|
|
|||
Special revenue
|
2,598,060
|
|
|
16.1
|
|
|
State general obligation
|
659,199
|
|
|
4.1
|
|
|
Pre-refunded (1)
|
477,118
|
|
|
3.0
|
|
|
Corporate backed
|
398,419
|
|
|
2.5
|
|
|
Local general obligation
|
367,026
|
|
|
2.3
|
|
|
Total state and municipal
|
4,499,822
|
|
|
28.0
|
|
|
Mortgage-backed securities:
|
|
|
|
|||
Agency
|
876,970
|
|
|
5.5
|
|
|
Residential-Prime
|
142,439
|
|
|
0.9
|
|
|
Commercial
|
68,204
|
|
|
0.4
|
|
|
Residential-Alt A
|
60,036
|
|
|
0.4
|
|
|
Total mortgage-backed securities
|
1,147,649
|
|
|
7.2
|
|
|
Corporate:
|
|
|
|
|||
Industrial
|
1,951,847
|
|
|
12.1
|
|
|
Asset-backed
|
1,640,097
|
|
|
10.2
|
|
|
Financial
|
1,293,718
|
|
|
8.0
|
|
|
Utilities
|
196,325
|
|
|
1.2
|
|
|
Other
|
81,224
|
|
|
0.5
|
|
|
Total corporate
|
5,163,211
|
|
|
32.0
|
|
|
Foreign government and foreign government agencies
|
884,669
|
|
|
5.5
|
|
|
Total fixed maturity securities
|
12,368,319
|
|
|
76.9
|
|
|
Equity securities:
|
|
|
|
|||
Preferred stocks
|
135,749
|
|
|
0.8
|
|
|
Common stocks
|
42,128
|
|
|
0.3
|
|
|
Total equity securities
|
177,877
|
|
|
1.1
|
|
|
Investment funds
|
1,140,218
|
|
|
7.1
|
|
|
Cash and cash equivalents
|
879,934
|
|
|
5.5
|
|
|
Real estate
|
873,909
|
|
|
5.4
|
|
|
Arbitrage trading account
|
351,179
|
|
|
2.2
|
|
|
Loans receivable
|
286,273
|
|
|
1.8
|
|
|
Total investments
|
$
|
16,077,709
|
|
|
100.0
|
%
|
(In thousands)
|
Carrying Value
|
||
Australia
|
$
|
223,787
|
|
United Kingdom
|
167,601
|
|
|
Canada
|
151,572
|
|
|
Argentina
|
136,293
|
|
|
Germany
|
67,030
|
|
|
Brazil
|
48,030
|
|
|
Supranational (1)
|
36,986
|
|
|
Norway
|
30,354
|
|
|
Singapore
|
6,079
|
|
|
Colombia
|
5,270
|
|
|
Netherlands
|
4,515
|
|
|
Austria
|
3,643
|
|
|
Uruguay
|
3,509
|
|
|
Total
|
$
|
884,669
|
|
Item 3.
|
Quantitative and Qualitative Disclosure About Market Risk
|
Item 4.
|
Controls and Procedures
|
|
Total number
of shares
purchased
|
|
Average price
paid per share
|
|
Total number of shares purchased
as part of publicly announced
plans
or programs
|
|
Maximum number of
shares that may yet be
purchased under the
plans or programs
|
|||||
July 2015
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
9,353,091
|
|
August 2015
|
106,113
|
|
|
52.018
|
|
|
106,113
|
|
|
9,246,978
|
|
|
September 2015
|
—
|
|
|
—
|
|
|
—
|
|
|
9,246,978
|
|
Number
|
|
|
(10.1)
|
|
Form of 2015 Performance-Based Restricted Stock Unit Agreement Under the W. R. Berkley Corporation 2012 Stock Incentive Plan
|
|
|
|
(31.1)
|
|
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/ 15d-14(a).
|
|
|
|
(31.2)
|
|
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/ 15d-14(a).
|
|
|
|
(32.1)
|
|
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
W. R. BERKLEY CORPORATION
|
Date:
|
November 9, 2015
|
/s/ W. Robert Berkley, Jr.
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W. Robert Berkley, Jr.
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President and Chief Executive Officer
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Date:
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November 9, 2015
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/s/ Eugene G. Ballard
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Eugene G. Ballard
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Executive Vice President - Chief Financial Officer
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A.
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In the event that the Committee determines that the Grantee, prior to the Vesting Date during Grantee’s employment, has engaged in a Competitive Action or enters into, or has entered into, an agreement (written, oral or otherwise) to engage in a Competitive Action or has engaged in Misconduct, all of the unvested Restricted Stock Units granted hereunder shall be immediately forfeited, and the Grantee shall have no further rights with respect to such Restricted Stock Units.
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B.
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In the event that the Committee determines that the Grantee, (1) on or after the Vesting Date during Grantee’s employment or for a period of one year following Grantee’s termination of employment for any reason, has engaged in a Competitive Action or has entered into an agreement (written, oral or otherwise) to engage in a Competitive Action, or (2) on or after the Vesting Date, has engaged in Misconduct, or prior to the Vesting Date Grantee has engaged in Misconduct that is not discovered or acted upon by the Company until on or after the Vesting Date, (x) the Grantee shall immediately forfeit all shares of Stock not yet delivered to Grantee with respect to the Restricted Stock Units and all rights to future payments of Dividend Equivalents (as defined below), and (y) the Grantee shall pay to the Company, upon demand by the Company, an amount equal to (i) the value, as of the Settlement Date (as defined below), of the number of shares of Stock delivered to the Grantee with respect to the Restricted Stock Units, (ii) all amounts paid to Grantee on or at any time prior to the Settlement Date in respect of Dividend Equivalents, and (iii) the value of all dividends, if any, paid to the Grantee in respect of the shares of Stock delivered to the Grantee on the Settlement Date. The Grantee may satisfy the payment obligation to the Company of the portion due under (i) above by returning the shares delivered to the Grantee on the Settlement Date, provided that any amounts due under (ii) and (iii) above must be remitted to the Company in addition to the return of the shares.
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C.
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Grantee acknowledges that engaging in (1) a Competitive Action during the Noncompete Period within the geographic areas set forth in Section 3(e) below or (2) Misconduct is contrary to the interests of the Company and would result in irreparable injuries to the Company and would cause loss in an amount that cannot be readily quantified. Grantee acknowledges that retaining the amounts required to be paid to the Company pursuant to this Section 3(d) once Grantee has (x) chosen to engage in or to agree to engage in a Competitive Action or (y) engaged in Misconduct is contrary to the interests of the Company. The amounts forfeited or paid to the Company hereunder do not and are not intended to constitute actual or liquidated damages. Any action or inaction by the Company with respect to enforcing the forfeiture or recapture provisions set forth herein shall not reduce, eliminate or in any way affect the Company’s right to enforce the forfeiture or recapture provisions in any other agreement with Grantee.
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D.
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The term “
Noncompete Period
” as used herein shall mean the period beginning on the date hereof and ending one year following Grantee’s termination of employment for any reason.
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E.
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Furthermore, if the Grantee engages in Misconduct or Competitive Action or has entered into an agreement (written, oral or otherwise) to engage in a Competitive Action during the Noncompete Period, then the Company shall be entitled to, and reserves the right to, pursue any other legal or equitable remedies in addition to the right to receive forfeitures and/or payments pursuant to this Section 3(d), including, but not limited to, the recovery of monetary damages resulting from such action set forth in Section 3(e) and injunctive relief.
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ROE Relative Performance*
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ROE Relative Performance
Vesting Percentage
(% of Target)*
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Less than +500 basis points
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0%
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≥+500 basis points
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80.0%
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≥+633 basis points
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90.0%
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≥+766 basis points
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100.0% (target)
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≥+900 basis points
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110.0%
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/s/ W. Robert Berkley, Jr.
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W. Robert Berkley, Jr.
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President and
Chief Executive Officer
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/s/ Eugene G. Ballard
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Eugene G. Ballard
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Executive Vice President -
Chief Financial Officer
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(1)
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ W. Robert Berkley, Jr.
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W. Robert Berkley, Jr.
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President and Chief Executive Officer
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/s/ Eugene G. Ballard
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Eugene G. Ballard
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Executive Vice President — Chief Financial Officer
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