Consolidated Balance Sheets as of December 31, 2008 and 2007 
| In thousands of U.S.$ (except share amounts) |
2008 | 2007 | ||
ASSETS |
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| Investments | ||||
| Fixed maturity investments available for sale, at fair value | ||||
| (amortized cost: $4,047,368 and $4,556,061 at | ||||
| December 31, 2008 and 2007, respectively) | 3,875,137 | 4,589,054 | ||
| Short-term investments, available for sale at fair value | ||||
| (amortized cost: $111,322 and $12,646 at December 31, 2008 and 2007) | 111,333 | 12,646 | ||
| Preferred equity securities, available for sale at fair value | 25,360 | 58,536 | ||
| Other investments | 284,263 | 358,128 | ||
| Total investments | 4,296,093 | 5,018,364 | ||
| Cash and cash equivalents | 1,061,994 | 567,825 | ||
| Premiums receivable, net | 609,387 | 723,832 | ||
| Deferred acquisition costs | 160,870 | 168,968 | ||
| Securities lending collateral | 112,940 | 173,041 | ||
| Prepaid reinsurance premiums | 149,591 | 122,594 | ||
| Losses recoverable | 557,834 | 187,354 | ||
| Accrued investment income | 30,872 | 38,543 | ||
| Goodwill and intangible assets | 200,791 | 206,632 | ||
| Deferred tax asset | 20,691 | – | ||
| Other assets | 71,407 | 64,000 | ||
| Total assets | 7,272,470 | 7,271,153 | ||
LIABILITIES |
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| Reserve for losses and loss expenses | 3,235,456 | 2,892,224 | ||
| Reserve for unearned premiums | 885,488 | 855,085 | ||
| Deposit liabilities | 58,622 | 108,943 | ||
| Reinsurance balances payable | 233,561 | 162,899 | ||
| Securities lending payable | 115,603 | 173,041 | ||
| Debt | 447,468 | 448,753 | ||
| Deferred tax liability | – | 922 | ||
| Other liabilities | 88,989 | 117,027 | ||
| Total liabilities | 5,065,187 | 4,758,894 | ||
| Commitments and contingent liabilities | ||||
Shareholders' Equity |
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| Preferred shares | ||||
| Series A, non-cumulative – Par value $1.00 - 8,000,000 issued and outstanding | ||||
| (2007 – 8,000,000); aggregate liquidation preference $200,000 (2007 – $200,000) | 8,000 | 8,000 | ||
| Common shares | ||||
| Ordinary – 57,203,454 issued and outstanding (2007 – 60,364,488) | 57,203 | 60,364 | ||
| Additional paid-in capital | 1,029,363 | 1,165,300 | ||
| Accumulated other comprehensive (loss) income | (132,665 | ) | 57,725 | |
| Retained earnings | 1,245,382 | 1,220,870 | ||
| Total shareholders' equity | 2,207,283 | 2,512,259 | ||
| Total liabilities and shareholders' equity | 7,272,470 | 7,271,153 | ||
The financial information presented in this report should be reviewed in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2008 filed with the Securities and Exchange Commission.
