Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 27, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Registrant Name | Global Indemnity Ltd | ||
Entity Central Index Key | 0001494904 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 001-34809 | ||
Entity Incorporation, State or Country Code | E9 | ||
Entity Tax Identification Number | 98-1304287 | ||
Entity Address, Address Line One | 27 HOSPITAL ROAD | ||
Entity Address, Address Line Two | GEORGE TOWN | ||
Entity Address, City or Town | GRAND CAYMAN | ||
Entity Address, Country | KY | ||
Entity Address, Postal Zip Code | KY1-9008 | ||
City Area Code | 345 | ||
Local Phone Number | 949-0100 | ||
Entity Public Float | $ 258,924,978 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement relating to the 2020 Annual Meeting of Shareholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2019 are incorporated by reference into Part III of this report. | ||
Ordinary Shares A | |||
Document Information [Line Items] | |||
Trading Symbol | GBLI | ||
Entity Ordinary Shares, Shares Outstanding | 10,162,332 | ||
Title of each class | A Ordinary Shares | ||
Name of each exchange on which registered | NASDAQ | ||
Ordinary Shares B | |||
Document Information [Line Items] | |||
Entity Ordinary Shares, Shares Outstanding | 4,133,366 | ||
7.75% Subordinated Notes due 2045 | |||
Document Information [Line Items] | |||
Trading Symbol | GBLIZ | ||
Title of each class | 7.75% Subordinated Notes due 2045 | ||
Name of each exchange on which registered | NASDAQ | ||
7.875% Subordinated Notes due 2047 | |||
Document Information [Line Items] | |||
Trading Symbol | GBLIL | ||
Title of each class | 7.875% Subordinated Notes due 2047 | ||
Name of each exchange on which registered | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed maturities: | ||
Available for sale, at fair value (amortized cost: $1,231,568 and $1,257,830) | $ 1,253,159 | $ 1,235,155 |
Equity securities, at fair value | 263,104 | 124,747 |
Other invested assets | 47,279 | 50,753 |
Total investments | 1,563,542 | 1,410,655 |
Cash and cash equivalents | 44,271 | 99,497 |
Premiums receivable, net | 118,035 | 87,679 |
Reinsurance receivables, net | 83,938 | 114,418 |
Funds held by ceding insurers | 48,580 | 49,206 |
Federal income taxes receivable | 10,989 | 10,866 |
Deferred federal income taxes | 31,077 | 48,589 |
Deferred acquisition costs | 70,677 | 61,676 |
Intangible assets | 21,491 | 22,020 |
Goodwill | 6,521 | 6,521 |
Prepaid reinsurance premiums | 16,716 | 20,594 |
Receivable for securities sold | 0 | 15 |
Other assets | 60,048 | 28,530 |
Total assets | 2,075,885 | 1,960,266 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 630,181 | 680,031 |
Unearned premiums | 314,861 | 281,912 |
Ceded balances payable | 20,404 | 14,994 |
Payable for securities purchased | 850 | 0 |
Contingent commissions | 11,928 | 10,636 |
Debt | 296,640 | 288,565 |
Other liabilities | 74,212 | 55,069 |
Total liabilities | 1,349,076 | 1,331,207 |
Commitments and contingencies (Note 14) | ||
Shareholders’ equity: | ||
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued: 10,282,277 and 10,171,954, respectively; A ordinary shares outstanding: 10,167,056 and 10,095,312, respectively; B ordinary shares issued and outstanding: 4,133,366 and 4,133,366, respectively | 2 | 2 |
Additional paid-in capital | 442,403 | 438,182 |
Accumulated other comprehensive income (loss), net of taxes | 17,609 | (21,231) |
Retained earnings | 270,768 | 215,132 |
Total shareholders’ equity | 726,809 | 629,059 |
Total liabilities and shareholders’ equity | 2,075,885 | 1,960,266 |
Ordinary Shares A | ||
Shareholders’ equity: | ||
A ordinary shares in treasury, at cost: 115,221 and 76,642 shares, respectively | (3,973) | (3,026) |
Total shareholders’ equity | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available for sale, amortized cost | $ 1,231,568 | $ 1,257,830 |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 900,000,000 | 900,000,000 |
Ordinary Shares A | ||
Ordinary shares, shares issued | 10,282,277 | 10,171,954 |
Ordinary shares, shares outstanding | 10,167,056 | 10,095,312 |
Treasury shares, shares | 115,221 | 76,642 |
Ordinary Shares B | ||
Ordinary shares, shares issued | 4,133,366 | 4,133,366 |
Ordinary shares, shares outstanding | 4,133,366 | 4,133,366 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues: | ||||
Gross written premiums | $ 636,861 | $ 547,897 | $ 516,334 | |
Net written premiums | 562,089 | 472,547 | 450,180 | |
Net earned premiums | 525,262 | 467,775 | 438,034 | |
Net investment income | 42,052 | 46,342 | 39,323 | |
Net realized investment gains (losses): | ||||
Other than temporary impairment losses on investments | (1,897) | (456) | (2,606) | |
Other net realized investment gains (losses) | 37,239 | (16,451) | 4,182 | |
Total net realized investment gains (losses) | 35,342 | (16,907) | 1,576 | |
Other income | 1,816 | 1,728 | 6,582 | |
Total revenues | 604,472 | 498,938 | 485,515 | |
Losses and Expenses: | ||||
Net losses and loss adjustment expenses | 275,402 | 334,625 | 269,212 | |
Acquisition costs and other underwriting expenses | 208,403 | 190,778 | 183,733 | |
Corporate and other operating expenses | 18,888 | 29,766 | 25,714 | |
Interest expense | 20,022 | 19,694 | 16,906 | |
Income (loss) before income taxes | 81,757 | (75,925) | (10,050) | |
Income tax expense (benefit) | 11,742 | (19,229) | (499) | |
Net income (loss) | $ 70,015 | $ (56,696) | $ (9,551) | |
Net income (loss) | ||||
Basic | [1] | $ 4.93 | $ (4.02) | $ (0.55) |
Diluted | [1] | $ 4.88 | $ (4.02) | $ (0.55) |
Weighted-average number of shares outstanding | ||||
Basic | 14,191,756 | 14,088,883 | 17,308,663 | |
Diluted | [2] | 14,334,706 | 14,088,883 | 17,308,663 |
Cash dividends declared per share | $ 1 | $ 1 | $ 0 | |
[1] | For the years ended December 31, 2018 and 2017, “weighted average shares outstanding - basic” was used to calculate “diluted earnings per share” due to a net loss for the period. | |||
[2] | For the years ended December 31, 2018 and 2017, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss for the period. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||||||||
Net income (loss) | $ 29,031 | $ 6,721 | $ 14,663 | $ 19,600 | $ (73,317) | $ 3,728 | $ 7,192 | $ 5,701 | $ 70,015 | $ (56,696) | $ (9,551) |
Other comprehensive income (loss), net of tax: | |||||||||||
Unrealized holding gains (losses) | 43,980 | (20,748) | 9,677 | ||||||||
Portion of other than temporary impairment losses recognized in other comprehensive income (loss) | (5) | (3) | (3) | ||||||||
Reclassification adjustment for gains included in net income | (5,437) | 2,450 | (848) | ||||||||
Unrealized foreign currency translation gains | 302 | (1,885) | 775 | ||||||||
Other comprehensive income (loss), net of tax | 38,840 | (20,186) | 9,601 | ||||||||
Comprehensive income (loss), net of tax | $ 108,855 | $ (76,882) | $ 50 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital | Accumulated other comprehensive income (loss), net of deferred income tax | Retained Earnings | Treasury Shares | Ordinary Shares A | Ordinary Shares ATreasury Shares | Ordinary Shares B |
Number at Dec. 31, 2016 | 0 | 13,436,548 | 4,133,366 | |||||
A ordinary shares purchased | 29,551 | |||||||
Retirement of treasury shares | 0 | |||||||
Retirement of shares | $ 0 | |||||||
Ordinary shares issued under share incentive plans | 2,204 | |||||||
Ordinary shares issued to directors | 27,121 | |||||||
Ordinary shares redeemed | (3,397,031) | |||||||
Adjustment for shares redeemed indirectly owned by subsidiary | 34,085 | |||||||
Number at Dec. 31, 2017 | 29,551 | 10,102,927 | 4,133,366 | |||||
Balance at Dec. 31, 2016 | $ 430,283 | $ (618) | $ 368,284 | $ 0 | $ 1 | $ 1 | ||
A ordinary shares purchased, at cost | $ (1,159) | |||||||
Other comprehensive income (loss), net of tax: | ||||||||
Change in unrealized holding gains (losses) | 8,829 | |||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | $ (3) | (3) | ||||||
Unrealized foreign currency translation gains | 775 | 775 | ||||||
Other comprehensive income (loss), net of tax | 9,601 | 9,601 | ||||||
Cumulative effect adjustment resulting from adoption of new accounting guidance | 0 | 0 | ||||||
Ordinary shares redeemed | (83,015) | |||||||
Adjustment for gain on shares redeemed indirectly owned by subsidiary | 706 | 120 | ||||||
Net income (loss) | (9,551) | (9,551) | ||||||
Dividends to shareholders | 0 | |||||||
Share compensation plans | 3,741 | |||||||
Balance at Dec. 31, 2017 | 718,394 | 434,730 | 8,983 | 275,838 | $ (1,159) | $ 1 | $ 1 | |
A ordinary shares purchased | 45,233 | |||||||
Retirement of treasury shares | 1,858 | |||||||
Retirement of shares | $ (54) | |||||||
Ordinary shares issued under share incentive plans | 37,381 | |||||||
Ordinary shares issued to directors | 31,646 | |||||||
Ordinary shares redeemed | 0 | |||||||
Adjustment for shares redeemed indirectly owned by subsidiary | 0 | |||||||
Number at Dec. 31, 2018 | 76,642 | 10,171,954 | 4,133,366 | |||||
A ordinary shares purchased, at cost | $ (1,813) | |||||||
Other comprehensive income (loss), net of tax: | ||||||||
Change in unrealized holding gains (losses) | (18,298) | |||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | (3) | (3) | ||||||
Unrealized foreign currency translation gains | (1,885) | (1,885) | ||||||
Other comprehensive income (loss), net of tax | (20,186) | (20,186) | ||||||
Cumulative effect adjustment resulting from adoption of new accounting guidance | (10,028) | 10,198 | ||||||
Ordinary shares redeemed | 0 | |||||||
Adjustment for gain on shares redeemed indirectly owned by subsidiary | 0 | 0 | ||||||
Net income (loss) | (56,696) | (56,696) | ||||||
Dividends to shareholders | (14,208) | (14,208) | ||||||
Share compensation plans | 3,452 | |||||||
Balance at Dec. 31, 2018 | 629,059 | 438,182 | (21,231) | 215,132 | $ (3,026) | $ 1 | $ 1 | |
A ordinary shares purchased | 27,028 | |||||||
Retirement of treasury shares | 11,551 | |||||||
Retirement of shares | $ 0 | |||||||
Ordinary shares issued under share incentive plans | 43,404 | |||||||
Ordinary shares issued to directors | 66,919 | |||||||
Ordinary shares redeemed | 0 | |||||||
Adjustment for shares redeemed indirectly owned by subsidiary | 0 | |||||||
Number at Dec. 31, 2019 | 115,221 | 10,282,277 | 4,133,366 | |||||
A ordinary shares purchased, at cost | $ (947) | |||||||
Other comprehensive income (loss), net of tax: | ||||||||
Change in unrealized holding gains (losses) | 38,543 | |||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | (5) | (5) | ||||||
Unrealized foreign currency translation gains | 302 | 302 | ||||||
Other comprehensive income (loss), net of tax | 38,840 | 38,840 | ||||||
Cumulative effect adjustment resulting from adoption of new accounting guidance | 0 | (5) | ||||||
Ordinary shares redeemed | 0 | |||||||
Adjustment for gain on shares redeemed indirectly owned by subsidiary | 0 | 0 | ||||||
Net income (loss) | 70,015 | 70,015 | ||||||
Dividends to shareholders | (14,374) | (14,374) | ||||||
Share compensation plans | 4,221 | |||||||
Balance at Dec. 31, 2019 | $ 726,809 | $ 442,403 | $ 17,609 | $ 270,768 | $ (3,973) | $ 1 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 70,015 | $ (56,696) | $ (9,551) |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||
Amortization and depreciation | 7,103 | 7,019 | 6,505 |
Amortization of debt issuance costs | 264 | 264 | 232 |
Restricted stock and stock option expense | 4,221 | 3,452 | 3,741 |
Deferred federal income taxes | 11,783 | (19,554) | (1,018) |
Amortization of bond premium and discount, net | 4,887 | 5,925 | 7,899 |
Net realized investment (gains) losses | (35,342) | 16,907 | (1,576) |
Changes in: | |||
Premiums receivable, net | (30,356) | (3,293) | 7,708 |
Reinsurance receivables, net | 30,480 | (9,358) | 38,714 |
Funds held by ceding insurers | 928 | (5,791) | (31,635) |
Unpaid losses and loss adjustment expenses | (49,850) | 45,367 | (16,378) |
Unearned premiums | 32,949 | (3,485) | (1,587) |
Ceded balances payable | 5,410 | 4,143 | (3,824) |
Other assets and liabilities, net | (16,162) | 46,823 | (27,061) |
Contingent commissions | 1,292 | 2,652 | (1,470) |
Federal income tax receivable/payable | (123) | (534) | 406 |
Deferred acquisition costs, net | (9,001) | (29) | (3,746) |
Prepaid reinsurance premiums | 3,878 | 8,257 | 13,732 |
Net cash provided by (used for) operating activities | 32,376 | 42,069 | (18,909) |
Cash flows from investing activities: | |||
Proceeds from sale of fixed maturities | 977,321 | 293,348 | 918,439 |
Proceeds from sale of equity securities | 260,891 | 35,639 | 32,218 |
Proceeds from maturity of fixed maturities | 180,546 | 55,182 | 145,475 |
Proceeds from other invested assets | 16,757 | 43,377 | 12,299 |
Amounts received (paid) in connection with derivatives | (7,654) | 4,392 | 1,464 |
Purchases of fixed maturities | (1,129,567) | (370,536) | (1,078,199) |
Purchases of equity securities | (365,255) | (36,258) | (36,647) |
Purchases of other invested assets | (13,283) | (16,309) | (24,000) |
Acquisition of business | 0 | (3,515) | 0 |
Net cash provided by (used for) investing activities | (80,244) | 5,320 | (28,951) |
Cash flows from financing activities: | |||
Net borrowings (repayments) under margin borrowing facility | 7,811 | (6,412) | 5,584 |
Redemption of ordinary shares | 0 | 0 | (83,015) |
Proceeds from issuance of subordinated notes | 0 | 0 | 130,000 |
Debt issuance cost | 0 | 0 | (4,246) |
Dividends paid to shareholders | (14,222) | (14,027) | 0 |
Purchases of A ordinary shares | (947) | (1,867) | (1,159) |
Net cash provided by (used for) financing activities | (7,358) | (22,306) | 47,164 |
Net change in cash and cash equivalents | (55,226) | 25,083 | (696) |
Cash and cash equivalents at beginning of period | 99,497 | 74,414 | 75,110 |
Cash and cash equivalents at end of period | $ 44,271 | $ 99,497 | $ 74,414 |
Principles of Consolidation and
Principles of Consolidation and Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principles of Consolidation and Basis of Presentation | 1. Global Indemnity Limited (“Global Indemnity” or “the Company”) was incorporated on February 9, 2016 and is domiciled in the Cayman Islands. On November 7, 2016, Global Indemnity replaced Global Indemnity plc as the ultimate parent company as a result of a redomestication transaction. The Company’s A ordinary shares are publicly traded on the NASDAQ Global Select Market under the ticker symbol GBLI. During the first quarter of 2019, the Company re-evaluated its Personal Lines segment and determined that Personal Lines should be bifurcated into two reportable segments: Specialty Property and Farm, Ranch, & Stable. This is the result of changing how Specialty Property and Farm, Ranch, & Stable are managed and reported. Specialty Property is managed out of the Company’s Scottsdale, Arizona office; whereas, Farm, Ranch, & Stable is managed out of the Company’s Omaha, Nebraska office. In the past, Farm, Ranch, & Stable reported to the Scottsdale, Arizona office and now it reports directly to the Company’s main headquarters in Bala Cynwyd, Pennsylvania. Results for Specialty Property and Farm, Ranch, & Stable are separately measured, resources are separately allocated to each of these lines, and employees in each line are now being rewarded based on each line’s separate results. Accordingly, the Company now reports Specialty Property and Farm, Ranch, & Stable as two separate reportable segments. In addition, the Company has changed the name of its Commercial Lines segment to Commercial Specialty to better align with its key product offerings. The segment results for the years ended December 31, 2018 and 2017 have been revised to reflect these changes. See Note 19 for additional information regarding segments. The Company manages its business through four business segments: Commercial Specialty, Specialty Property, Farm, Ranch, & Stable, and Reinsurance Operations. The Company’s Commercial Specialty segment offers specialty property and casualty insurance products in the excess and surplus lines marketplace. The Company manages Commercial Specialty by differentiating them into four product classifications: 1) Penn-America, which markets property and general liability products to small commercial businesses through a select network of wholesale general agents with specific binding authority; 2) United National, which markets insurance products for targeted insured segments, including specialty products, such as property, general liability, and professional lines through program administrators with specific binding authority; 3)Diamond State, which markets property, casualty, and professional lines products, which are developed by the Company’s underwriting department by individuals with expertise in those lines of business, through wholesale brokers and also markets through program administrators having specific binding authority; and 4) Vacant Express, which primarily insures dwellings which are currently vacant, undergoing renovation, or are under construction and is marketed through aggregators, brokers, and retail agents. These product classifications comprise the Company’s Commercial Specialty business segment and are not considered individual business segments because each product has similar economic characteristics, distribution, and coverage. The Company’s Specialty Property segment offers specialty personal lines property and casualty insurance products through general and specialty agents with specific binding authority on an admitted basis. The Company’s Farm, Ranch, & Stable segment provides specialized property and casualty coverage including Commercial Farm Auto and Excess/Umbrella Coverage for the agriculture industry as well as specialized insurance products for the equine mortality and equine major medical industry on an admitted basis. These insurance products are sold through wholesalers and retail agents, with a selected number having specific binding authority. Collectively, the Company’s U.S. insurance subsidiaries are licensed in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The Company’s Reinsurance Operations consist solely of the operations of its Bermuda-based wholly-owned subsidiary, Global Indemnity Reinsurance. Global Indemnity Reinsurance is a treaty reinsurer of specialty property and casualty insurance and reinsurance companies. The Company’s Reinsurance Operations segment provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. The consolidated financial statements have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On January 1, 2018, the Company adopted new accounting guidance which requires equity investments, except for those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with the changes in fair value recognized in net income. Upon adoption, the Company recorded a cumulative effect adjustment, net of tax, of $10.0 million which reduced accumulated other comprehensive income and increased retained earnings. During the year ended December 31, 2018, net realized investment gains (losses) included a loss of $22.0 million related to the change in the fair value of equity investments in accordance with this new accounting guidance. In addition, under the new guidance, equity investments, are no longer classified into different categories as either trading or available for sale. Prior to the adoption of this new guidance, equity securities were previously classified as available for sale. On January 1, 2018, the Company adopted new accounting guidance regarding the classification of certain cash receipts and cash payments within the statement of cash flows. Upon adoption, the Company made a policy election to use the cumulative earnings approach for presenting distributions received from equity method investees. Under this approach, distributions up to the amount of cumulative equity in earnings recognized will be treated as returns on investment and presented in operating activities and those in excess of that amount will be treated as returns of investment and presented in the investing section. Prior to adoption, all distributions received from equity method investees were presented in the investing section of the consolidated statements of cash flows. The provisions of this accounting guidance were adopted on a retrospective basis. As a result, the consolidated statement of cash flows for the year ended December 31, 2017 that was included in the Form 10-K for the year ended December 31, 2017 was restated. For the year ended December 31, 2017, net cash flows from operating activities was increased by $4.7 million and net cash flows from investing activities was reduced by $4.7 million. The consolidated financial statements include the accounts of Global Indemnity and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2 . Summary of Significant Accounting Policies Investments The Company’s investments in fixed maturities, which are classified as available for sale, and equity securities are carried at their fair value. Fair value is defined as 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. The fair values of the Company's fixed maturities and equity securities are determined on the basis of quoted market prices where available. If quoted market prices are not available, the Company uses third party pricing services to assist in determining fair value. In many instances, these services examine the pricing of similar instruments to estimate fair value. The Company purchases bonds with the expectation of holding them to their maturity; however, changes to the portfolio are sometimes required to assure it is appropriately matched to liabilities. In addition, changes in financial market conditions and tax considerations may cause the Company to sell an investment before it matures. The difference between amortized cost and fair value of the Company’s fixed maturity portfolio, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders’ equity and, accordingly, has no effect on net income other than for the credit loss component of impairments deemed to be other than temporary. Equity securities are measured at fair value with the changes in fair value recognized in net income. For investments in limited partnerships where the ownership interest is less than 3%, the Company carries these investments at fair value, and the change in the difference between cost and the fair value of the partnership interests, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders' equity and, accordingly, has no effect on net income other than for impairments deemed to be other than temporary. The Company uses the equity method to account for investments in limited partnerships where its ownership interest exceeds 3%. The equity method of accounting for an investment in a limited partnership requires that its cost basis be updated to account for the income or loss earned on the investment. The income or loss associated with the limited partnerships is reflected in the consolidated statements of operations, and the adjusted cost basis approximates fair value. The Company’s investments in other invested assets were valued at $47.3 million and $50.8 million as of December 31, 2019 and 2018, respectively. These amounts relate to investments in limited partnerships. The Company does not have access to daily valuations, therefore; the estimated fair value of the limited partnerships are based on net asset value as a practical expedient for the limited partnerships. Net realized gains and losses on investments are determined based on the first-in, first-out method. The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each fixed maturity security in an unrealized loss position to assess whether the security has a credit loss. Specifically, the Company considers credit rating, market price, and issuer specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities for which the Company determines that a credit loss is likely are subjected to further analysis through discounted cash flow testing to estimate the credit loss to be recognized in earnings, if any. The specific methodologies and significant assumptions used by asset class are discussed below. Upon identification of such securities and periodically thereafter, a detailed review is performed to determine whether the decline is considered other than temporary. This review includes an analysis of several factors, including but not limited to, the credit ratings and cash flows of the securities and the magnitude and length of time that the fair value of such securities is below cost. For fixed maturities, the factors considered in reaching the conclusion that a decline below cost is other than temporary include, among others, whether: (1) the issuer is in financial distress; (2) the investment is secured; (3) a significant credit rating action occurred; (4) scheduled interest payments were delayed or missed; (5) changes in laws or regulations have affected an issuer or industry; (6) the investment has an unrealized loss and was identified by the Company’s investment manager as an investment to be sold before recovery or maturity; and (7) the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized. According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met, the Company must recognize an other than temporary impairment with the entire unrealized loss being recorded through earnings. For debt securities in an unrealized loss position not meeting these conditions, the Company assesses whether the impairment of a security is other than temporary. If the impairment is deemed to be other than temporary, the Company must separate the other than temporary impairment into two components: the amount representing the credit loss and the amount related to all other factors, such as changes in interest rates. The credit loss represents the portion of the amortized book value in excess of the net present value of the projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. The credit loss component of the other than temporary impairment is recorded through earnings, whereas the amount relating to factors other than credit losses is recorded in other comprehensive income, net of taxes. Prior to the implementation of new accounting guidance on January 1, 2018, management carefully reviewed all equity securities with unrealized losses to determine if a security should be impaired and further focuses on securities that had either: (1) persisted with unrealized losses for more than twelve consecutive months or (2) the value of the investment had been 20% or more below cost for six continuous months or more. On January 1, 2018, the Company adopted new accounting guidance which requires equity investments, except for those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with the changes in fair value recognized in net income. The amount of any write-down, including those that are deemed to be other than temporary, is included in earnings as a realized loss in the period in which the impairment arose. For an analysis of other than temporary losses that were recorded for the years ended December 31, 2019, 2018, and 2017, please see Note 3 below. Variable Interest Entities A Variable Interest Entity (“VIE”) refers to an investment in which an investor holds a controlling interest that is not based on the majority of voting rights. Under the VIE model, the party that has the power to exercise significant management influence and maintain a controlling financial interest in the entity’s economics is said to be the primary beneficiary, and is required to consolidate the entity within their results. Other entities that participate in a VIE, for which their financial interests fluctuate with changes in the fair value of the investment entity’s net assets but do not have significant management influence and the ability to direct the VIE’s significant economic activities are said to have a variable interest in the VIE but do not consolidate the VIE in their financial results. The Company has variable interests in three VIEs for which it is not the primary beneficiary. These investments are accounted for under the equity method of accounting as their ownership interest exceeds 3% of their respective investments. Cash and Cash Equivalents For the purpose of the statements of cash flows, the Company considers all liquid instruments with an original maturity of three months or less to be cash equivalents. The Company has a cash management program that provides for the investment of excess cash balances primarily in short-term money market instruments. Generally, bank balances exceed federally insured limits. The carrying amount of cash and cash equivalents approximates fair value. At December 31, 2019 and 2018, the Company had approximately $35.8 million and $77.4 million, respectively, of cash and cash equivalents that was invested in a diversified portfolio of high quality short-term debt securities. Valuation of Premium Receivable The Company evaluates the collectability of premium receivable based on a combination of factors. In instances in which the Company is aware of a specific circumstance where a party may be unable to meet its financial obligations to the Company, a specific allowance for bad debts against amounts due is recorded to reduce the net receivable to the amount reasonably believed by management to be collectible. For all remaining balances, allowances are recognized for bad debts based on the length of time the receivables are past due. The allowance for bad debts was $2.8 million and $2.3 million as of December 31, 2019 and 2018, respectively. Goodwill and Intangible Assets The Company tests for impairment of goodwill at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of goodwill for impairment using both qualitative and quantitative factors. Impairment of goodwill is recognized only if the carrying amount of the reporting unit, including goodwill, exceeds the fair value of the reporting unit. The amount of the impairment loss would be equal to the excess carrying value of the goodwill over the implied fair value of the reporting unit goodwill. Based on the qualitative assessment performed, t of as of December 31, 2019. Impairment of intangible assets with an indefinite at least annually and more frequently as circumstances warrant here were no impairments Intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated useful lives. The carrying amounts of definite lived intangible assets are regularly reviewed for indicators of impairment in accordance with applicable accounting guidance. Impairment is recognized only if the carrying amount of the intangible asset is in excess of its undiscounted projected cash flows. The impairment is measured as the difference between the carrying amount and the estimated fair value of the asset. As of December 31, 2019, there were no triggering events that occurred during the year that would result in an impairment of definite lived intangible assets. See Note 6 for additional information on goodwill and intangible assets. Reinsurance In the normal course of business, the Company seeks to reduce the loss that may arise from events that cause unfavorable underwriting results by reinsuring certain levels of risk from various areas of exposure with reinsurers. Amounts receivable from reinsurers are estimated in a manner consistent with the reinsured policy and the reinsurance contract. The Company regularly reviews the collectability of reinsurance receivables. An allowance for uncollectible reinsurance receivable is recognized based on the financial strength of the reinsurers and the length of time any balances are past due. Any changes in the allowance resulting from this review are included in net losses and loss adjustment expenses on the consolidated statements of operations during the period in which the determination is made. The allowance for uncollectible reinsurance was $9.0 million and $8.0 million as of December 31, 2019 and 2018, respectively. The applicable accounting guidance requires that the reinsurer must assume significant insurance risk under the reinsured portions of the underlying insurance contracts and that there must be a reasonably possible chance that the reinsurer may realize a significant loss from the transaction. The Company has evaluated its reinsurance contracts and concluded that each contract qualifies for reinsurance accounting treatment pursuant to this guidance. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. The deferred tax asset balance is analyzed regularly by management. This assessment requires significant judgment and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of carryforward periods, and tax planning strategies and/or actions. Management believes that it is more likely than not that the results of future operations can generate sufficient taxable income to realize the remaining deferred income tax assets, and accordingly, the Company has not established any valuation allowances. Deferred Acquisition Costs The costs of acquiring new and renewal insurance and reinsurance contracts include commissions, premium taxes and certain other costs that are directly related to the successful acquisition of new and renewal insurance and reinsurance contracts. The excess of the Company’s costs of acquiring new and renewal insurance and reinsurance contracts over the related ceding commissions earned from reinsurers is capitalized as deferred acquisition costs and amortized over the period in which the related premiums are earned. The amortization of deferred acquisition costs for the years ended December 31, 2019, 2018, and 2017 was $132.3 million, $118.0 million, and $109.0 million, respectively. Premium Deficiency A premium deficiency is recognized if the sum of expected loss and loss adjustment expenses and unamortized acquisition costs exceeds related unearned premium after consideration of investment income. This evaluation is done at a distribution and product line level in Insurance Operations and at a treaty level in Reinsurance Operations. Any future expected loss on the related unearned premium is recorded first by impairing the unamortized acquisition costs on the related unearned premium followed by an increase to loss and loss adjustment expense reserves on additional expected loss in excess of unamortized acquisition costs. No premium deficiency reserve existed as of December 31, 2019 or 2018. Derivative Instruments The Company uses derivative instruments to manage its exposure to cash flow variability from interest rate risk and limit exposure to severe equity market changes. The derivative instruments are carried on the balance sheet at fair value and included in other assets and other liabilities. Changes in the fair value of the derivative instruments and the periodic net interest settlements under the derivatives instruments are recognized as net realized investment gains (losses) on the consolidated statements of operations. Margin Borrowing Facility The carrying amounts reported in the balance sheet represent the outstanding borrowings. The outstanding borrowings are due on demand; therefore, the cash receipts and cash payments related to the margin borrowing facility are shown net in the consolidated statements of cash flows. Subordinated Notes The carrying amounts reported in the balance sheet represent the outstanding balances, net of deferred issuance cost. See Note 10 for details. Unpaid Losses and Loss Adjustment Expenses The liability for unpaid losses and loss adjustment expenses represents the Company’s best estimate of future amounts needed to pay losses and related settlement expenses with respect to events insured by the Company. This liability is based upon the accumulation of individual case estimates for losses reported prior to the close of the accounting period with respect to direct business, estimates received from ceding companies with respect to assumed reinsurance, and estimates of unreported losses. The process of establishing the liability for unpaid losses and loss adjustment is complex, requiring the use of informed actuarially based estimates and management’s judgment. In some cases, significant periods of time, up to several years or more, may elapse between the occurrence of an insured loss and the reporting of that loss to the Company. To establish this liability, the Company regularly reviews and updates the methods of making such estimates and establishing the resulting liabilities. Any resulting adjustments are recorded in consolidated statements of operations during the period in which the determination is made. Retirement of Treasury Stock Upon the formal retirement of treasury stock, the Company offsets the par value of the treasury stock that is being retired against Ordinary Shares and reflects any excess of cost over par value as a deduction from Additional Paid-in Capital. Share Redemptions When shares are redeemed, the Company offsets the par value of the redeemed shares against Ordinary Shares and reflects any excess of cost over par value as a deduction from Retained Earnings. Premiums Premiums are recognized as revenue ratably over the term of the respective policies and treaties. Unearned premiums are computed on a pro rata basis to the day of expiration. Mandatory reinstatement premiums assessed on reinsurance policies are earned in the period of the loss event that gave rise to the reinstatement premiums. Contingent Commissions Certain professional general agencies of the Insurance Operations are paid special incentives, referred to as contingent commissions, when results of business produced by these agencies are more favorable than predetermined thresholds. Similarly, in some circumstances, companies that cede business to the Reinsurance Operations are paid profit commissions based on the profitability of the ceded portfolio. These commissions are charged to other underwriting expenses when incurred. Share-Based Compensation The Company accounts for stock options and other equity based compensation using the modified prospective application of the fair value-based method permitted by the appropriate accounting guidance. See Note 15 for details. Earnings per Share Basic earnings per share have been calculated by dividing net income available to common shareholders by the weighted-average ordinary shares outstanding. In periods of net income, diluted earnings per share have been calculated by dividing net income available to common shareholders by the sum of the weighted-average ordinary shares outstanding and the weighted-average common share equivalents outstanding, which include options and other equity awards. In periods of net loss, diluted earnings per share is the same as basic earnings per share. See Note 17 for details. Foreign Currency At times, the Company maintains investments and cash accounts in foreign currencies related to the operations of its business. At period-end, the Company re-measures non-U.S. currency financial assets to their current U.S. dollar equivalent. The resulting gain or loss for foreign denominated fixed maturity investments, if any, is reflected in accumulated other comprehensive income in shareholders’ equity; whereas, the gain or loss on foreign denominated cash accounts and equity securities is reflected in income during the period. Financial liabilities, if any, are generally adjusted within the reserving process. However, for known losses on claims to be paid in foreign currencies, the Company re-measures the liabilities to their current U.S. dollar equivalent each period end with the resulting gain or loss reflected in income during the period. Net transaction gains and losses, primarily comprised of re-measurement of known losses on claims to be paid in foreign currencies, were a gain Leases The Company determines if an arrangement is a lease at inception. Leases with a term of 12 months or less are not recorded on the consolidated balance sheets. Lease right-of-use assets (“ROU”) are included in other assets on the consolidated balance sheets and lease liabilities are included in other liabilities on the consolidated balance sheets. Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company’s leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate at the commencement date in determining the present value of future payments. The ROU asset is calculated using the initial lease liability amount, plus any lease payments made at or before the commencement date, minus any lease incentives received, plus any initial direct costs incurred. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. The Company’s lease agreements may contain both lease and non-lease components which are accounted separately. The Company elected the practical expedient on not separating lease components from non-lease components for its equipment leases. Other Income In 2019 and 2018, other income is primarily comprised of fee income and foreign exchange gains and losses. In 2017, other income is comprised of fee income on policies issued, commission income, accrued interest on the anticipated indemnification of unpaid loss and loss adjustment expense reserve, and foreign exchange gains and losses. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 3 . Investments The amortized cost and estimated fair value of investments were as follows as of December 31, 2019 and 2018: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Other than temporary impairments recognized in AOCI (1) As of December 31, 2019 Fixed maturities: U.S. treasury and agency obligations $ 153,906 $ 3,580 $ (797 ) $ 156,689 $ — Obligations of states and political subdivisions 63,256 853 (271 ) 63,838 — Mortgage-backed securities 325,448 3,177 (251 ) 328,374 — Asset-backed securities 168,020 937 (420 ) 168,537 — Commercial mortgage-backed securities 183,944 4,369 (209 ) 188,104 — Corporate bonds 239,860 8,478 (79 ) 248,259 — Foreign corporate bonds 97,134 2,247 (23 ) 99,358 — Total fixed maturities 1,231,568 23,641 (2,050 ) 1,253,159 — Equity Securities 263,104 — — 263,104 — Other invested assets 47,279 — — 47,279 — Total $ 1,541,951 $ 23,641 $ (2,050 ) $ 1,563,542 $ — (1) Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”). (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Other than temporary impairments recognized in AOCI (1) As of December 31, 2018 Fixed maturities: U.S. treasury and agency obligations $ 79,766 $ 252 $ (1,163 ) $ 78,855 $ — Obligations of states and political subdivisions 95,629 322 (338 ) 95,613 — Mortgage-backed securities 119,327 313 (1,786 ) 117,854 — Asset-backed securities 185,430 336 (2,012 ) 183,754 — Commercial mortgage-backed securities 206,236 338 (3,852 ) 202,722 — Corporate bonds 452,692 243 (12,080 ) 440,855 — Foreign corporate bonds 118,750 44 (3,292 ) 115,502 — Total fixed maturities 1,257,830 1,848 (24,523 ) 1,235,155 — Common stock 124,747 — — 124,747 — Other invested assets 50,753 — — 50,753 — Total $ 1,433,330 $ 1,848 $ (24,523 ) $ 1,410,655 $ — (1) Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”). As of December 31, 2019, the Company’s investments in equity securities consist of $135.3 million of common stock, $11.7 million of preferred stock, $54.6 million of mutual funds that invest in fixed maturities, and $61.5 million of mutual funds that invest in common stocks. As of December 31, 2019, the Company held a Fannie Mae mortgage pool totaling 4.2% of shareholders’ equity. Excluding the Fannie Mae pool, U.S. treasuries, agency bonds, mutual funds, and limited partnerships, the Company did not hold any debt or equity investments in a single issuer in excess of 3% of shareholders' equity at December 31, 2019 and December 31, 2018. The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at December 31, 2019, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Estimated Fair Value Due in one year or less $ 18,857 $ 18,931 Due in one year through five years 266,699 272,472 Due in five years through ten years 181,756 186,057 Due in ten years through fifteen years 25,728 26,338 Due after fifteen years 61,116 64,346 Mortgage-backed securities 325,448 328,374 Asset-backed securities 168,020 168,537 Commercial mortgage-backed securities 183,944 188,104 Total $ 1,231,568 $ 1,253,159 The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2019. Less than 12 months 12 months or longer (1) Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasury and agency obligations $ 35,633 $ (797 ) $ — $ — $ 35,633 $ (797 ) Obligations of states and political subdivisions 27,180 (271 ) — — 27,180 (271 ) Mortgage-backed securities 93,579 (244 ) 902 (7 ) 94,481 (251 ) Asset-backed securities 43,402 (167 ) 16,152 (253 ) 59,554 (420 ) Commercial mortgage-backed securities 25,698 (196 ) 1,945 (13 ) 27,643 (209 ) Corporate bonds 19,407 (79 ) — — 19,407 (79 ) Foreign corporate bonds 4,822 (20 ) 2,035 (3 ) 6,857 (23 ) Total fixed maturities $ 249,721 $ (1,774 ) $ 21,034 $ (276 ) $ 270,755 $ (2,050 ) (1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2018: Less than 12 months 12 months or longer (1) Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasury and agency obligations $ — $ — $ 67,185 $ (1,163 ) $ 67,185 $ (1,163 ) Obligations of states and political subdivisions 22,802 (57 ) 28,179 (281 ) 50,981 (338 ) Mortgage-backed securities 36,858 (408 ) 60,838 (1,378 ) 97,696 (1,786 ) Asset-backed securities 96,085 (1,342 ) 50,506 (670 ) 146,591 (2,012 ) Commercial mortgage-backed securities 44,596 (878 ) 127,557 (2,974 ) 172,153 (3,852 ) Corporate bonds 285,997 (8,791 ) 115,052 (3,289 ) 401,049 (12,080 ) Foreign corporate bonds 56,543 (1,795 ) 47,494 (1,497 ) 104,037 (3,292 ) Total fixed maturities $ 542,881 $ (13,271 ) $ 496,811 $ (11,252 ) $ 1,039,692 $ (24,523 ) (1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. Subject to the risks and uncertainties in evaluating the potential impairment of a security’s value, the impairment evaluation conducted by the Company as of December 31, 2019 concluded the unrealized losses discussed above are not other than temporary impairments. The impairment evaluation process is discussed in the “Investment” section of Note 2 (“Summary of Significant Accounting Policies”). The following is a description, by asset type, of the methodology and significant inputs that the Company used to measure the amount of credit loss recognized in earnings, if any: U.S. treasury and agency obligations – As of December 31, 2019, gross unrealized losses related to U.S. treasury and agency obligations were $0.797 million. All unrealized losses have been in an unrealized loss position for less than twelve months. Macroeconomic and market analysis is conducted in evaluating these securities. Consideration is given to the interest rate environment, duration and yield curve management of the portfolio, sector allocation and security selection. Obligations of states and political subdivisions – As of December 31, 2019, gross unrealized losses related to obligations of states and political subdivisions were $0.271 million. All unrealized losses have been in an unrealized loss position for less than twelve months. All factors that influence performance of the municipal bond market are considered in evaluating these securities. The aforementioned factors include investor expectations, supply and demand patterns, and current versus historical yield and spread relationships. The analysis relies on the output of fixed income credit analysts, as well as dedicated municipal bond analysts who perform extensive in-house fundamental analysis on each issuer, regardless of their rating by the major agencies. Mortgage-backed securities (“MBS”) – As of December 31, 2019, gross unrealized losses related to mortgage-backed securities were $0.251 million. Of this amount, $0.007 million have been in an unrealized loss position for twelve months or greater and are rated AA+ or better. Mortgage-backed securities are modeled to project principal losses under downside, base, and upside scenarios for the economy and home prices. The primary assumption that drives the security and loan level modeling is the Home Price Index (“HPI”) projection. These forecasts incorporate not just national macro-economic trends, but also regional impacts to arrive at the most granular and accurate projections. These assumptions are incorporated into the model as a basis to generate delinquency probabilities, default curves, loss severity curves, and voluntary prepayment curves at the loan level within each deal. The model utilizes HPI-adjusted current LTV, payment history, loan terms, loan modification history, and borrower characteristics as inputs to generate expected cash flows and principal loss for each bond under various scenarios. Asset backed securities (“ABS”) - As of December 31, 2019, gross unrealized losses related to asset backed securities were $0.420 million. Of this amount, $0.253 million have been in an unrealized loss position for twelve months or greater and are rated A or better. The weighted average credit enhancement for the Company’s asset backed portfolio is 28.7. This represents the percentage of pool losses that can occur before an asset backed security will incur its first dollar of principal losses. Every ABS transaction is analyzed on a stand-alone basis. This analysis involves a thorough review of the collateral, prepayment, and structural risk in each transaction. Additionally, the analysis includes an in-depth credit analysis of the originator and servicer of the collateral. The analysis projects an expected loss for a deal given a set of assumptions specific to the asset type. These assumptions are used to calculate at what level of losses the deal will incur its first dollar of principal loss. The major assumptions used to calculate this ratio are loss severities, recovery lags, and no advances on principal and interest. Commercial mortgage-backed securities (“CMBS”) - As of December 31, 2019, gross unrealized losses related to the CMBS portfolio were $0.209 million. Of this amount, $0.013 million have been in an unrealized loss position for twelve months or greater and are rated AA+ or better. The weighted average credit enhancement for the Company’s CMBS portfolio is 30.0. This represents the percentage of pool losses that can occur before a mortgage-backed security will incur its first dollar of principal loss. For the Company’s CMBS portfolio, a loan level analysis is utilized where every underlying CMBS loan is re-underwritten based on a set of assumptions reflecting expectations for the future path of the economy. Each loan is analyzed over time using a series of tests to determine if a credit event will occur during the life of the loan. Inherent in this process are several economic scenarios and their corresponding rent/vacancy and capital market states. The five primary credit events that frame the analysis include loan modifications, term default, balloon default, extension, and ability to pay off at balloon. The resulting output is the expected loss adjusted cash flows for each bond under the base case and distressed scenarios. Corporate bonds - As of December 31, 2019, gross unrealized losses related to corporate bonds were $0.079 million. All unrealized losses have been in an unrealized loss position for less than twelve months. The analysis for this asset class includes maintaining detailed financial models that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. Foreign bonds – As of December 31, 2019, gross unrealized losses related to foreign bonds were $0.023 million. Of this amount, $0.003 million have been in an unrealized loss position for twelve months or greater and are rated AA-. For this asset class, detailed financial models are maintained that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the years ended December 31, 2019, 2018, and 2017: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Fixed maturities: OTTI losses, gross $ (1,897 ) $ (456 ) $ (31 ) Portion of loss recognized in other comprehensive income (pre-tax) — — — Net impairment losses on fixed maturities recognized in earnings (1,897 ) (456 ) (31 ) Equity securities — — (2,575 ) Total $ (1,897 ) $ (456 ) $ (2,606 ) The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company as of December 31, 2019, 2018, and 2017 for which a portion of the OTTI loss was recognized in other comprehensive income. Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Balance at beginning of period $ 13 $ 13 $ 31 Additions where no OTTI was previously recorded — — — Additions where an OTTI was previously recorded — — — Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery — — — Reductions reflecting increases in expected cash flows to be collected — — — Reductions for securities sold during the period (13 ) — (18 ) Balance at end of period $ — $ 13 $ 13 Accumulated Other Comprehensive Income, Net of Tax Accumulated other comprehensive income, net of tax, as of December 31, 2019 and 2018 was as follows: December 31, (Dollars in thousands) 2019 2018 Net unrealized gains (losses) from: Fixed maturities $ 21,591 $ (22,675 ) Foreign currency fluctuations (1,032 ) (1,334 ) Deferred taxes (2,950 ) 2,778 Accumulated other comprehensive income, net of tax $ 17,609 $ (21,231 ) The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the years ended December 31, 2019 and 2018: Year Ended December 31, 2019 (Dollars in thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ (19,897 ) $ (1,334 ) $ (21,231 ) Other comprehensive income (loss) before reclassification, before tax 50,325 302 50,627 Amounts reclassified from accumulated other comprehensive income (loss), before tax (6,059 ) — (6,059 ) Other comprehensive income (loss), before tax 44,266 302 44,568 Income tax benefit (expense) (5,728 ) — (5,728 ) Ending balance, net of tax $ 18,641 $ (1,032 ) $ 17,609 Year Ended December 31, 2018 (Dollars in thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ 8,272 $ 711 $ 8,983 Other comprehensive income (loss) before reclassification, before tax (23,891 ) (1,885 ) (25,776 ) Amounts reclassified from accumulated other comprehensive income (loss), before tax 2,923 — 2,923 Other comprehensive income (loss), before tax (20,968 ) (1,885 ) (22,853 ) Income tax expense 2,667 — 2,667 Cumulative effect adjustment, net of tax (9,868 ) (160 ) (10,028 ) Ending balance, net of tax $ (19,897 ) $ (1,334 ) $ (21,231 ) The reclassifications out of accumulated other comprehensive income for the years ended December 31, 2019 and 2018 were as follows: (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive Income Years Ended December 31, Details about Accumulated Other Comprehensive Income Components Affected Line Item in the Consolidated Statements of Operations 2019 2018 Unrealized gains and losses on available for sale securities Other net realized investment (gains) losses $ (7,956 ) $ 2,467 Other than temporary impairment losses on investments 1,897 456 Total before tax (6,059 ) 2,923 Income tax expense (benefit) 622 (473 ) Unrealized gains and losses on available for sale securities, net of tax (5,437 ) 2,450 Foreign currency items Other net realized investment (gains) losses — — Income tax expense — — Foreign currency items, net of tax — — Total reclassifications Total reclassifications, net of tax $ (5,437 ) $ 2,450 Net Realized Investment Gains (Losses) The components of net realized investment gains (losses) for the years ended December 31, 2019, 2018, and 2017 were as follows: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Fixed maturities: Gross realized gains $ 9,675 $ 354 $ 4,066 Gross realized losses (3,616 ) (3,277 ) (3,387 ) Net realized gains (losses) 6,059 (2,923 ) 679 Equity Securities: Gross realized gains 40,730 6,491 4,178 Gross realized losses (6,737 ) (22,592 ) (3,206 ) Net realized gains (losses) 33,993 (16,101 ) 972 Derivatives: Gross realized gains 3,518 3,906 3,555 Gross realized losses (8,228 ) (1,789 ) (3,630 ) Net realized gains (losses) (1) (4,710 ) 2,117 (75 ) Total net realized investment gains (losses) $ 35,342 $ (16,907 ) $ 1,576 (1) Includes periodic net interest settlements related to the derivatives of $1.2 million, $1.9 million, and $3.6 million for the years ended December 31, 2019, 2018, and 2017, respectively. New accounting guidance regarding equity securities was implemented on January 1, 2018 which requires companies to disclose realized gains and losses for equity securities still held at period end and gains and losses from securities sold during the period. The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of December 31, 2019: Years Ended December 31, (Dollars in thousands) 2019 2018 Net gains and (losses) recognized during the period on equity securities $ 33,993 $ (16,101 ) Less: Net gains (losses) recognized during the period on equity securities sold during the period 10,846 5,921 Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date $ 23,147 $ (22,022 ) The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the years ended December 31, 2019, 2018, and 2017 were as follows: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Fixed maturities $ 977,321 $ 293,348 $ 918,439 Equity securities 260,891 35,639 32,218 Net Investment Income The sources of net investment income for the years ended December 31, 2019, 2018, and 2017 were as follows: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Fixed maturities $ 36,673 $ 37,085 $ 33,020 Equity securities 7,006 4,037 3,595 Cash and cash equivalents 1,510 1,177 894 Other invested assets 78 6,879 4,741 Total investment income 45,267 49,178 42,250 Investment expense (3,215 ) (2,836 ) (2,927 ) Net investment income $ 42,052 $ 46,342 $ 39,323 As of December 31, 2019, the Company did not own fixed maturity securities that were non-income producing for the preceding twelve months. As of December 31, 2018, the Company owned fixed maturity securities with a market value of $0.4 million that were non-income producing for the preceding twelve months. The Company’s total investment return on a pre-tax basis for the years ended December 31, 2019, 2018, and 2017 were as follows: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Net investment income $ 42,052 $ 46,342 $ 39,323 Net realized investment gains(losses) 35,342 (16,907 ) 1,576 Change in unrealized holding gains and losses 44,568 (22,853 ) 14,424 Net realized and unrealized investment returns 79,910 (39,760 ) 16,000 Total investment return $ 121,962 $ 6,582 $ 55,323 Total investment return % 7.8 % 0.4 % 3.5 % Average investment portfolio $ 1,558,565 $ 1,522,805 $ 1,597,487 Insurance Enhanced Asset-Backed and Credit Securities As of December 31, 2019, the Company held insurance enhanced bonds with a market value of approximately $36.5 million, which represented 2.3% of the Company’s total cash and invested assets, net of payable/ receivable for securities purchased and sold. The insurance enhanced bonds are comprised of $16.3 million of municipal bonds, $20.1 million of commercial mortgage-backed securities, and $0.1 million of collateralized mortgage obligations. The financial guarantors of the Company’s $36.5 million of insurance enhanced commercial-mortgage-backed, municipal securities, and collateralized mortgage obligations include Municipal Bond Insurance Association ($3.9 million), Assured Guaranty Corporation ($10.2 million), Federal Home Loan Mortgage Corporation ($20.1 million), Ambac Financial Group ($2.2 million), and Federal Deposit Insurance Corporation ($0.1 million). The Company had no direct investments in the entities that have provided financial guarantees or other credit support to any security held by the Company at December 31, 2019. Bonds Held on Deposit Certain cash balances, cash equivalents, equity securities, and bonds available for sale were deposited with various governmental authorities in accordance with statutory requirements, were held as collateral, or were held in trust pursuant to intercompany reinsurance agreements. The fair values were as follows as of December 31, 2019 and 2018: Estimated Fair Value (Dollars in thousands) December 31, 2019 December 31, 2018 On deposit with governmental authorities $ 26,431 $ 25,855 Intercompany trusts held for the benefit of U.S. policyholders 179,116 209,028 Held in trust pursuant to third party requirements 133,122 98,417 Letter of credit held for third party requirements 1,458 2,317 Securities held as collateral 91,229 83,214 Total $ 431,356 $ 418,831 Variable Interest Entities A Variable Interest Entity (VIE) refers to an investment in which an investor holds a controlling interest that is not based on the majority of voting rights. Under the VIE model, the party that has the power to exercise significant management influence and maintain a controlling financial interest in the entity’s economics is said to be the primary beneficiary, and is required to consolidate the entity within their results. Other entities that participate in a VIE, for which their financial interests fluctuate with changes in the fair value of the investment entity’s net assets but do not have significant management influence and the ability to direct the VIE’s significant economic activities are said to have a variable interest in the VIE but do not consolidate the VIE in their financial results. The Company has variable interests in three VIE’s for which it is not the primary beneficiary. These investments are accounted for under the equity method of accounting as their ownership interest exceeds 3% of their respective investments. The fair value of one of the Company’s VIE’s, which invests in distressed securities and assets, was $13.5 million and $17.9 million as of December 31, 2019 and 2018, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $27.7 million and $32.1 million at December 31, 2019 and 2018, respectively. The fair value of a second VIE that also invests in distressed securities and assets was $24.0 million and $32.9 million as of December 31, 2019 and 2018, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $41.0 million and $53.4 million at December 31, 2019 and 2018, respectively. The fair value of a third VIE that invests in REIT qualifying assets was $9.8 million as of December 31, 2019. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $10.3 million at December 31, 2019. The Company’s investment in VIEs is included in other invested assets on the consolidated balance sheet with changes in fair value recorded in the consolidated statements of operations. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 4 . Derivative Instruments Derivatives are used by the Company to reduce risks from changes in interest rates and limit exposure to severe equity market changes. The Company has interest rate swaps with terms to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. In 2019, the Company began to utilize exchange-traded futures contracts, which give the holder the right and obligation to participate in market movements at a future date, to allow the Company to react faster to market conditions. The Company posts collateral and settles variation margin in cash on a daily basis equal to the amount of the futures contracts’ change in value scaled by a multiplier. The Company accounts for the interest rate swaps and futures as non-hedge instruments and recognizes the fair value of the interest rate swaps in other assets or other liabilities on the consolidated balance sheets with the changes in fair value recognized as net realized investment gains or losses in the consolidated statements of operations. The Company is ultimately responsible for the valuation of the interest rate swaps. To aid in determining the estimated fair value of the interest rate swaps, the Company relies on the forward interest rate curve and information obtained from a third party financial institution. The following table summarizes information on the location and the gross amount of the derivatives on the consolidated balance sheets as of December 31, 2019 and 2018: (Dollars in thousands) December 31, 2019 December 31, 2018 Derivatives Not Designated as Hedging Instruments under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value Interest rate swap agreements Other assets/liabilities $ 200,000 $ (10,275 ) $ 200,000 $ (4,062 ) Futures contracts on bonds (1) Other assets/liabilities 16,894 — — — Futures contracts on equities (1) Other assets/liabilities 57,816 — — — Total $ 274,710 $ (10,275 ) $ 200,000 $ (4,062 ) (1) Futures are settled daily such that their fair value is not reflected in the consolidated statements of financial position The following table summarizes the net gains (losses) included in the consolidated statements of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the years ended December 31, 2019, 2018, and 2017: Consolidated Statements of Years Ended December 31, (Dollars in thousands) Operations Line 2019 2018 2017 Interest rate swap agreements Net realized investment gains (losses) $ (7,449 ) $ 2,117 $ (75 ) Futures contracts on bonds Net realized investment gains (losses) 873 — — Futures contracts on equities Net realized investment gains (losses) 1,866 — — $ (4,710 ) $ 2,117 $ (75 ) As of December 31, 2019 and 2018, the Company is due $3.0 million and $2.6 million, respectively, for funds it needed to post to execute the swap transaction and $12.5 million and $3.7 million, respectively, for margin calls made in connection with the interest rate swaps. These amounts are included in other assets on the consolidated balance sheets. As of December 31, 2019, the Company posted initial margin of $3.0 million in securities for trading futures contracts and has a mark-to-market receivable of $0.3 million in connection with the futures contracts. Variation margin is included in other assets on the consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5 . Fair Value Measurements The accounting standards related to fair value measurements define fair value, establish a framework for measuring fair value, outline a fair value hierarchy based on inputs used to measure fair value, and enhance disclosure requirements for fair value measurements. These standards do not change existing guidance as to whether or not an instrument is carried at fair value. The Company has determined that its fair value measurements are in accordance with the requirements of these accounting standards. The Company’s invested assets and derivative instruments are carried at their fair value and are categorized based upon a fair value hierarchy: • Level 1 – inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date. • Level 2 – inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly. • Level 3 – inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset. The following table presents information about the Company’s invested assets and derivative instruments measured at fair value on a recurring basis as of December 31, 2019 and 2018, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. As of December 31, 2019 Fair Value Measurements (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 156,689 $ — $ — $ 156,689 Obligations of states and political subdivisions — 63,838 — 63,838 Mortgage-backed securities — 328,374 — 328,374 Commercial mortgage-backed securities — 188,104 — 188,104 Asset-backed securities — 168,537 — 168,537 Corporate bonds — 248,259 — 248,259 Foreign corporate bonds — 99,358 — 99,358 Total fixed maturities 156,689 1,096,470 — 1,253,159 Equity securities 251,448 11,656 — 263,104 Total assets measured at fair value (1) $ 408,137 $ 1,108,126 $ — $ 1,516,263 Liabilities: Derivative instruments $ — $ 10,275 $ — $ 10,275 Total Liabilities measured at fair value $ — $ 10,275 $ — $ 10,275 (1) Excluded from the table above are limited partnerships of $47.3 million at December 31, 2019 whose fair value is based on net asset value as a practical expedient. As of December 31, 2018 Fair Value Measurements (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 78,855 $ — $ — $ 78,855 Obligations of states and political subdivisions — 95,613 — 95,613 Mortgage-backed securities — 117,854 — 117,854 Commercial mortgage-backed securities — 202,722 — 202,722 Asset-backed securities — 183,754 — 183,754 Corporate bonds — 440,855 — 440,855 Foreign corporate bonds — 115,502 — 115,502 Total fixed maturities 78,855 1,156,300 — 1,235,155 Equity securities 124,747 — — 124,747 Total assets measured at fair value (1) $ 203,602 $ 1,156,300 $ — $ 1,359,902 Liabilities: Derivative instruments $ — $ 4,062 $ — $ 4,062 Total liabilities measured at fair value $ — $ 4,062 $ — $ 4,062 (1) Excluded from the table above are limited partnerships of $50.8 million at December 31, 2018 whose fair value is based on net asset value as a practical expedient. The securities classified as Level 1 in the above table consist of U.S. Treasuries and equity securities actively traded on an exchange. The securities classified as Level 2 in the above table consist primarily of fixed maturity securities and derivative instruments. Based on the typical trading volumes and the lack of quoted market prices for fixed maturities, security prices are derived through recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information. If there are no recent reported trades, matrix or model processes are used to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Included in the pricing of asset-backed securities, collateralized mortgage obligations, and mortgage-backed securities are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment speeds previously experienced at the interest rate levels projected for the underlying collateral. The estimated fair value of the derivative instruments, consisting of interest rate swaps, is obtained from a third party financial institution that utilizes observable inputs such as the forward interest rate curve. For the Company’s material debt arrangements, the current fair value of the Company’s debt at December 31, 2019 and 2018 was as follows: December 31, 2019 December 31, 2018 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Margin Borrowing Facility $ 73,629 $ 73,629 $ 65,818 $ 65,818 7.75% Subordinated Notes due 2045 (1) 96,864 100,264 96,742 92,261 7.875% Subordinated Notes due 2047 (2) 126,147 134,462 126,005 120,597 Total $ 296,640 $ 308,355 $ 288,565 $ 278,676 (1) As of December 31, 2019 and 2018, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.1 million and $3.3 million, respectively. (2) As of December 31, 2019 and 2018, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $3.9 million and $4.0 million, respectively. The fair value of the margin borrowing facility approximates its carrying value due to the facility being due on demand. The subordinated notes due 2045 and 2047 are publicly traded instruments and are classified as Level 1 in the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the years ended December 31, 2019, 2018, and 2017. Fair Value of Alternative Investments Other invested assets consist of limited liability partnerships whose fair value is based on net asset value per share practical expedient. The following table provides the fair value and future funding commitments related to these investments at December 31, 2019 and 2018. December 31, 2019 December 31, 2018 (Dollars in thousands) Fair Value Future Funding Commitment Fair Value Future Funding Commitment Real Estate Fund, LP (1) $ — $ — $ — $ — European Non-Performing Loan Fund, LP (2) 13,530 14,214 17,893 14,214 Distressed Debt Fund, LP (3) 23,966 17,000 32,860 20,500 Mortgage Debt Fund, LP (4) 9,783 506 — — Total $ 47,279 $ 31,720 $ 50,753 $ 34,714 (1) This limited partnership invests in real estate assets through a combination of direct or indirect investments in partnerships, limited liability companies, mortgage loans, and lines of credit. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company continues to hold an investment in this limited partnership and has written the fair value down to zero. (2) This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. Based on the terms of the partnership agreement, the Company anticipates its interest in this partnership to be redeemed by 2020 unless extended with the consent of the limited partners. (3) This limited partnership invests in stressed and distressed securities and structured products. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. Based on the terms of the partnership agreement, the Company anticipates its interest to be redeemed no later than 2027 unless extended with the consent of the limited partners. (4) This limited partnership invests in REIT qualifying assets such as mortgage loans, investor property loans, and commercial mortgage loans. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. Based on the terms of the partnership agreement, the Company anticipates its interest to be redeemed no later than 2027 unless extended with the consent of the limited partners. Limited Partnerships with ownership interest exceeding 3% The Company uses the equity method to account for investments in limited partnerships where its ownership interest exceeds 3%. The equity method of accounting for an investment in a limited partnership requires that its cost basis be updated to account for the income or loss earned on the investment. The investment income associated with these limited partnerships, which is reflected in the consolidated statements of operations, was less than $0.1 million, $6.9 million, and $4.7 million for the years ended December 31, 2019, 2018, and 2017, respectively. Pricing The Company’s pricing vendors provide prices for all investment categories except for investments in limited partnerships whose fair value is based on net asset values as a practical expedient. Two primary vendors are utilized to provide prices for equity and fixed maturity securities. The following is a description of the valuation methodologies used by the Company’s pricing vendors for investment securities carried at fair value: • Equity security prices are received from primary and secondary exchanges. • Corporate and agency bonds are evaluated by utilizing a spread to a benchmark curve. Bonds with similar characteristics are grouped into specific sectors. Inputs for both asset classes consist of trade prices, broker quotes, the new issue market, and prices on comparable securities. • Data from commercial vendors is aggregated with market information, then converted into an option adjusted spread “OAS” matrix and prepayment model used for commercial mortgage obligations (“CMO”). CMOs are categorized with mortgage-backed securities in the tables listed above. For asset-backed securities, spread data is derived from trade prices, dealer quotations, and research reports. For both asset classes, evaluations utilize standard inputs plus new issue data, and collateral performance. The evaluated pricing models incorporate cash flows, broker quotes, market trades, historical prepayment speeds, and dealer projected speeds. • For obligations of state and political subdivisions, an attribute-based modeling system is used. The pricing model incorporates trades, market clearing yields, market color, and fundamental credit research. • U.S. treasuries are evaluated by obtaining feeds from a number of live data sources including primary and secondary dealers as well as inter-dealer brokers. • For mortgage-backed securities, various external analytical products are utilized and purchased from commercial vendors. The Company performs certain procedures to validate whether the pricing information received from the pricing vendors is reasonable, to ensure that the fair value determination is consistent with accounting guidance, and to ensure that its assets are properly classified in the fair value hierarchy. The Company’s procedures include, but are not limited to: • Reviewing periodic reports provided by the Investment Manager that provides information regarding rating changes and securities placed on watch. This procedure allows the Company to understand why a particular security’s market value may have changed or may potentially change. • Understanding and periodically evaluating the various pricing methods and procedures used by the Company’s pricing vendors to ensure that investments are properly classified within the fair value hierarchy. • On a quarterly basis, the Company corroborates investment security prices received from its pricing vendors by obtaining pricing from a second pricing vendor for a sample of securities. During 2019 and 2018, the Company has not adjusted quotes or prices obtained from the pricing vendors. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill As a result of acquisitions in 2015 and 2010, the Company has goodwill, within the Specialty Property Intangible assets The following table presents details of the Company’s intangible assets as of December 31, 2019: (Dollars in thousands) Description Weighted Average Amortization Period Cost Accumulated Amortization Net Value Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 3,430 1,870 Agent relationships 10 years 900 444 456 Trade names 7 years 600 435 165 $ 25,800 $ 4,309 $ 21,491 The following table presents details of the Company’s intangible assets as of December 31, 2018: (Dollars in thousands) Description Weighted Average Amortization Period Cost Accumulated Amortization Net Value Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 3,076 2,224 Agent relationships 10 years 900 356 544 Trade names 7 years 600 348 252 $ 25,800 $ 3,780 $ 22,020 Amortization related to the Company’s definite lived intangible assets was $0.5 million for each of the years ended December 31, 2019, 2018 and 2017. The weighted average amortization period for total definite lived intangible assets was 13.4 years. The Company expects that amortization expense for the next five years will be as follows: (Dollars in thousands) 2020 $ 529 2021 522 2022 443 2023 443 2024 443 Intangible assets with indefinite lives As of December 31, 2019 and 2018, indefinite lived intangible assets, which are comprised of tradenames, trademarks, and state insurance licenses, were $19.0 million. Impairment testing performed in 2019 and 2018 indicated that there was no impairment of these assets. Intangible assets with definite lives As of December 31, 2019 and 2018, definite lived intangible assets, net of accumulated amortization, were $2.5 million and $3.0 million, respectively, and were comprised of customer relationships, agent relationships, and tradenames. There was no impairment of these assets in 2019 or 2018. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Reinsurance | 7. Reinsurance The Company cedes risk to unrelated reinsurers on a pro rata (“quota share”) and excess of loss basis in the ordinary course of business to limit its net loss exposure on insurance contracts. Reinsurance ceded arrangements do not discharge the Company of primary liability. Moreover, reinsurers may fail to pay the Company due to a lack of reinsurer liquidity, perceived improper underwriting, and losses for risks that are excluded from reinsurance coverage and other similar factors, all of which could adversely affect the Company’s financial results. The Company had the following reinsurance balances as of December 31, 2019 and 2018: (Dollars in thousands) December 31, 2019 December 31, 2018 Reinsurance receivables, net $ 83,938 $ 114,418 Collateral securing reinsurance receivables (3,802 ) (11,347 ) Reinsurance receivables, net of collateral $ 80,136 $ 103,071 Allowance for uncollectible reinsurance receivables $ 8,992 $ 8,040 Prepaid reinsurance premiums 16,716 20,594 The reinsurance receivables above are net of a purchase accounting adjustment related to discounting acquired loss reserves to their present value and applying a risk margin to the discounted reserves. This adjustment was $0.4 million and $0.8 million at December 31, 2019 and 2018, respectively. As of December 31, 2019, the Company had one aggregate unsecured reinsurance receivables that exceeded 3% of shareholders’ equity from the following reinsurer. Unsecured reinsurance receivables include amounts receivable for paid and unpaid losses and loss adjustment expenses, less amounts secured by collateral. (Dollars in thousands) Reinsurance Receivables A.M. Best Ratings (As of December 31, 2019) Munich Re America Corporation $ 44,129 A+ The effect of reinsurance on premiums written and earned is as follows: (Dollars in thousands) Written Earned For the year ended December 31, 2019: Direct business $ 548,618 $ 527,018 Reinsurance assumed 88,243 76,893 Reinsurance ceded (1) (74,772 ) (78,649 ) Net premiums $ 562,089 $ 525,262 For the year ended December 31, 2018: Direct business $ 495,129 $ 483,229 Reinsurance assumed 52,768 68,156 Reinsurance ceded (1) (75,350 ) (83,610 ) Net premiums $ 472,547 $ 467,775 For the year ended December 31, 2017: Direct business $ 433,922 $ 440,109 Reinsurance assumed 82,412 77,811 Reinsurance ceded (1) (66,154 ) (79,886 ) Net premiums $ 450,180 $ 438,034 (1) Includes ceded written premiums of ($0.3) million, ($2.1) million, and ($1.3) million and ceded earned premiums of $2.3 million, $7.3 million and $13.5 million to American Bankers Insurance Company for the years ended December 31, 2019, 2018, and 2017, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8 . Income Taxes As of December 31, 2019, the statutory income tax rates of the countries where the Company conducts or conducted business are 21% in the United States, 0% in Bermuda, 0% in the Cayman Islands, 24.94% for companies with a registered office in Luxembourg City, 1.0% to 2.5% in Barbados, 19% in the United Kingdom and 25% on non-trading income, 33% on capital gains and 12.5% on trading income in the Republic of Ireland. The statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense. The Company’s income before income taxes from its non-U.S. subsidiaries and U.S. subsidiaries for the years ended December 31, 2019, 2018, and 2017 were as follows: Year Ended December 31, 2019 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 88,282 $ 548,579 $ — $ 636,861 Net written premiums $ 88,285 $ 473,804 $ — $ 562,089 Net earned premiums $ 75,961 $ 449,301 $ — $ 525,262 Net investment income 29,307 26,816 (14,071 ) 42,052 Net realized investment gains 3,121 32,221 — 35,342 Other income (loss) (165 ) 1,981 — 1,816 Total revenues 108,224 510,319 (14,071 ) 604,472 Losses and Expenses: Net losses and loss adjustment expenses 36,502 238,900 — 275,402 Acquisition costs and other underwriting expenses 23,610 184,793 — 208,403 Corporate and other operating expenses 7,462 11,426 — 18,888 Interest expense 1,409 32,684 (14,071 ) 20,022 Income before income taxes $ 39,241 $ 42,516 $ — $ 81,757 Year Ended December 31, 2018 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 48,050 $ 499,847 $ — $ 547,897 Net written premiums $ 48,041 $ 424,506 $ — $ 472,547 Net earned premiums $ 135,826 $ 331,949 $ — $ 467,775 Net investment income 49,699 27,294 (30,651 ) 46,342 Net realized investment losses (669 ) (16,238 ) — (16,907 ) Other income (loss) (210 ) 1,938 — 1,728 Total revenues 184,646 344,943 (30,651 ) 498,938 Losses and Expenses: Net losses and loss adjustment expenses 91,178 243,447 — 334,625 Acquisition costs and other underwriting expenses 57,487 133,291 — 190,778 Corporate and other operating expenses 12,234 17,532 — 29,766 Interest expense 7,108 43,237 (30,651 ) 19,694 Income (loss) before income taxes $ 16,639 $ (92,564 ) $ — $ (75,925 ) Year Ended December 31, 2017 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 212,386 $ 462,453 $ (158,505 ) $ 516,334 Net written premiums $ 212,432 $ 237,748 $ — $ 450,180 Net earned premiums $ 201,165 $ 236,869 $ — $ 438,034 Net investment income 56,890 24,609 (42,176 ) 39,323 Net realized investment gains (losses) (641 ) 2,217 — 1,576 Other income 216 6,366 — 6,582 Total revenues 257,630 270,061 (42,176 ) 485,515 Losses and Expenses: Net losses and loss adjustment expenses 94,903 174,309 — 269,212 Acquisition costs and other underwriting expenses 89,153 94,580 — 183,733 Corporate and other operating expenses 17,399 8,315 — 25,714 Interest expense 16,740 42,342 (42,176 ) 16,906 Income (loss) before income taxes $ 39,435 $ (49,485 ) $ — $ (10,050 ) For the year ended December 31, 2017, the Company’s income (loss) before income taxes from its non-U.S. subsidiaries and U.S. subsidiaries, as reported in the table above, includes the results of the quota share agreement between Global Indemnity Reinsurance and the Insurance Operations. This quota share agreement was cancelled on a runoff basis effective January 1, 2018. The following table summarizes the components of income tax expense (benefit): Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Current income tax expense (benefit): Foreign $ (41 ) $ 325 $ 392 U.S. Federal — — 127 Total current income tax expense (benefit) (41 ) 325 519 Deferred income tax expense (benefit): U.S. tax rate change — — 17,524 U.S. Federal 11,783 (19,554 ) (18,542 ) Total deferred income tax expense (benefit) 11,783 (19,554 ) (1,018 ) Total income tax expense (benefit) $ 11,742 $ (19,229 ) $ (499 ) The weighted average expected tax provision has been calculated using income (loss) before income taxes in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate: Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average $ 8,928 10.9 % $ (19,112 ) (25.2 %) $ (16,928 ) (168.4 %) Adjustments: Tax exempt interest (3 ) (0.0 ) (6 ) — (213 ) (2.1 ) Dividend exclusion (284 ) (0.3 ) (279 ) (0.4 ) (571 ) (5.7 ) Tax rate change — — — — 17,524 174.4 Non-deductible interest 2,714 3.3 356 0.5 — — Other 387 0.5 (188 ) (0.2 ) (311 ) (3.2 ) Effective income tax expense (benefit) $ 11,742 14.4 % $ (19,229 ) (25.3 %) $ (499 ) (5.0 %) The effective income tax expense rate for 2019 was 14.4%, compared with an effective income tax benefit rate of 25.3% and 5.0% for 2018 and 2017, respectively. The increase in the effective income tax expense rate in 2019 compared to 2018 is due to higher pretax income in the U.S. in 2019. The increase in the effective income tax benefit rate in 2018 compared to 2017 is due to a $17.5 million tax expense recorded in 2017 as a result of the TCJA enacted in 2017 resulting in lowering the tax rate from 35% to 21% which caused the Company to write down its deferred tax asset offset by an increase in losses incurred by the Company’s non-U.S. operations in 2018 compared to 2017. The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at December 31, 2019 and 2018 are presented below: (Dollars in thousands) 2019 2018 Deferred tax assets: Discounted unpaid losses and loss adjustment expenses $ 3,681 $ 3,482 Unearned premiums 10,234 9,206 Section 163(j) carryforward 9,023 11,075 Net operating loss carryforward 21,871 29,480 Partnership K1 basis differences 1,703 113 Loss on derivative instruments 2,158 853 Investment impairments 1 816 Stock options 1,352 1,375 Stat-to-GAAP reinsurance reserve 874 895 Unrealized loss on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income (loss) — 2,778 Unrealized loss on equity securities — 1,409 Intercompany transfers — 210 Other 1,840 1,860 Total deferred tax assets 52,737 63,552 Deferred tax liabilities: Intangible assets 3,112 3,150 Unrealized gain on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income (loss) 2,950 — Unrealized gain on equity securities 3,438 — Investment basis differences — 212 Deferred acquisition costs 11,608 10,525 Depreciation and amortization 436 528 Other 116 548 Total deferred tax liabilities 21,660 14,963 Total net deferred tax assets $ 31,077 $ 48,589 The deferred tax assets and deferred tax liabilities listed in the table above relate to temporary differences between the Company’s accounting and tax carrying values and carryforwards for its companies in the United States. Management believes it is more likely than not that the remaining deferred tax assets will be completely utilized in future years. As a result, the Company has not recorded a valuation allowance at December 31, 2019 and 2018. The Company has a net operating loss (“NOL”) carryforward of $21.9 million as of December 31, 2019, which begins to expire in 2036 based on when the original NOL was generated. The Company’s NOL carryforward as of December 31, 2018 was $29.5 million. The Company has a Section 163(j) (“163(j)”) carryforward of $9.0 million and $11.1 million as of December 31, 2019 and 2018, respectively, which can be carried forward indefinitely. The 163(j) carryforward relates to the limitation on the deduction for business interest expense paid or accrued. The Company had an alternative minimum tax (“AMT”) credit carryforward of $11.0 million as of December 31, 2017. The TCJA repealed the corporate AMT. The AMT credit carryforward of $11.0 million was reclassed to federal income taxes receivable at December 31, 2017 and will be fully refunded by the end of 2021. The Company and some of its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. The Company is no longer subject to U.S. federal tax examinations by tax authorities for tax years before 2016. Should the Company’s subsidiaries that are subject to income taxes imposed by the U.S. authorities pay a dividend to their foreign affiliates, withholding taxes would apply. The Company has not recorded deferred taxes for potential withholding tax on undistributed earnings. The Company believes, although there can be no assurances, that it qualifies for treaty benefits under the Tax Convention with Luxembourg and would be subject to a 5% withholding tax if it were to pay a dividend. Determination of the unrecognized deferred tax liability related to these undistributed earnings is not practicable because of the complexities with its hypothetical calculation. The Company did not pay any dividends from a U.S. subsidiary to a foreign affiliate during 2019, 2018, or 2017. The Company applies a more-likely-than-not recognition threshold for all tax uncertainties whereby it only recognizes those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the taxing authorities. All tax benefits recognized by the company in 2019, 2018, and 2017 have a greater than 50% likelihood of being sustained upon examination by the taxing authorities. The Company classifies all interest and penalties related to uncertain tax positions as income tax expense. The Company did not incur any interest and penalties related to uncertain tax positions during the years ended December 31, 2019, 2018 and 2017. As of December 31, 2019, the Company did not record any liabilities for tax-related interest and penalties on its consolidated balance sheets. |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | 9 . Liability for Unpaid Losses and Loss Adjustment Expenses Consolidated Activity Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Balance at beginning of period $ 680,031 $ 634,664 $ 651,042 Less: Ceded reinsurance receivables 109,342 97,243 130,439 Net balance at beginning of period 570,689 537,421 520,603 Purchased reserves, gross — — 19,333 Less: Purchased reserves ceded — — (29 ) Purchase reserves, net of third party reinsurance — — 19,362 Incurred losses and loss adjustment expenses related to: Current year 308,211 363,423 323,112 Prior years (32,809 ) (28,798 ) (53,900 ) Total incurred losses and loss adjustment expenses 275,402 334,625 269,212 Paid losses and loss adjustment expenses related to: Current year 146,128 173,545 156,325 Prior years 146,055 127,812 115,431 Total paid losses and loss adjustment expenses 292,183 301,357 271,756 Net balance at end of period 553,908 570,689 537,421 Plus: Ceded reinsurance receivables 76,273 109,342 97,243 Balance at end of period $ 630,181 $ 680,031 $ 634,664 When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates. During 2019, the Company reduced its prior accident year loss reserves by $32.8 million, which consisted of a $18.4 million decrease related to Commercial Specialty, $10.8 million decrease related to Specialty Property, $5.5 million decrease related to Farm, Ranch, & Stable, and a $1.9 million increase related to Reinsurance Operations. The $18.4 million reduction of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • General Liability: A $14.5 million reduction in aggregate with $3.5 million of favorable development in the construction defect reserve category and $11.0 million of favorable development in the other general liability reserve categories. The favorable development in the construction defect reserve category recognizes better than expected claims frequency and severity in the 2004 through 2009, 2011 through 2015, 2017 and 2018 accident years, partially offset by increases in the 2010 and 2016 accident years which reflects higher than anticipated claims severity. The decreases in the other general liability reserve categories primarily recognizes lower than anticipated claims severity in the 1999 through 2014, 2016 and 2017 accident years, partially offset by an increase in the 2015 accident year which was impacted by higher than expected claims severity. • Commercial Auto Liability: A $2.0 million decrease primarily driven by better than expected claims severity in the 2000 through 2002, 2010 through 2013, 2015 and 2016 accident years. • Professional Liability: A $1.9 million reduction primarily in the 2007 through 2011 accident years recognizes better than expected claims severity • Property: A $0.9 million decrease in aggregate mainly due to lower than anticipated claims severity in the 2012 through 2016 accident years, partially offset by increases in the 2010, 2017 and 2018 accident years which were impacted by higher than expected claims severity. • Reinsurance: A $1.0 million increase was recognized based on a review of expected ceded recoverables by reinsurer. The increase was primarily in the general liability reserve categories and older accident years. The $10.8 million reduction of prior accident year loss reserves related to Specialty Property primarily consisted of the following: • Property: A $10.2 million decrease in aggregate primarily recognizes a reduction in the catastrophe reserve category for subrogation recoveries from the California Camp wildfire loss in the 2018 accident year. There also was favorable development in accident years 2015 through 2017 reflecting better than expected claims severity. • General Liability: A $0.6 million decrease primarily recognizes lower than expected claims severity in the 2014 through 2016 and 2018 accident years, partially offset by increases in the 2010 and 2017 accident years, recognizing higher than expected claims severity. The $5.5 million reduction of prior accident year loss reserves related to Farm, Ranch, & Stable primarily consisted of the following: • Property: A $3.9 million decrease in aggregate in the 2015 through 2018 accident years primarily reflects lower than expected claims severity. Also, there were ceded recoveries from a second accident quarter catastrophe in the 2018 accident year leading to favorable development in that year. • Liability: A $1.6 million decrease primarily in the 2015 through 2017 accident years recognizes lower than anticipated claims severity, partially offset by increases in the 2013, 2014, and 2018 accident years which reflects higher than expected claims severity The $1.9 million increase in prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following: • Property: A $5.0 million increase primarily in the 2016 through 2018 accident years partially offset by favorable development in the 2011 through 2015 accident years based on a review of the experience reported from the cedants. The 2018 accident year was adversely impacted by $9.0 million of development from Typhoon Jebi. • Professional Liability: A $3.1 million decrease was recognized in the 2008, 2010 and 2013 through 2015 accident years, partially offset by an increase in the 2007 accident year based on a review of the experience reported from the cedants. During 2018, the Company reduced its prior accident year loss reserves by $28.8 million, which consisted of a $7.3 million decrease related to Commercial Specialty, $7.9 million decrease related to Specialty Property, $4.7 million decrease related to Farm, Ranch, & Stable, and a $8.9 million decrease related to Reinsurance Operations. The $7.3 million reduction of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • General Liability: A $1.3 million reduction in reserve categories excluding construction defect. Lower than expected claims severity was the primary driver of the favorable development, mainly in the 2002 through 2004, 2006 through 2010, and 2012 through 2014 accident years which was partially offset by increases in the 2011 and 2015 through 2017 accident years. • Commercial Auto Liability: A $3.2 million decrease in the aggregate primarily due to a reduction in the 2010, 2012 and 2013 accident years resulting from lower than anticipated claims severity partially offset by an increase in the 2015 and 2017 accident years. • Professional Liability: A $0.9 million decrease reflects lower than expected claims severity mainly in the 2008, 2011, and 2014 accident years. • Property: A $1.9 million decrease in the aggregate recognizes lower than anticipated claims severity primarily in the 2007, 2014, 2015, and 2017 accident years partially offset by an increase in the 2016 accident year. The $7.9 million reduction of prior accident year loss reserves related to Specialty Property primarily consisted of the following: • Property: A $5.7 million reduction in the property reserve categories. The decrease reflects lower than anticipated claims severity primarily in the 2014 through 2017 accident years. • General Liability: A $2.2 million decrease primarily in the 2011 through 2014 and 2016 through 2017 accident years, which recognizes lower than expected claims severity, partially offset by an increase in the 2015 accident year which reflects higher than expected claims severity. The $4.7 reduction of prior accident year loss reserves related to Farm, Ranch, & Stable primarily consisted of the following: • Property: A $1.3 million reduction primarily in the 2014 through 2017 accident years mainly reflects lower than expected claims severity. • Liability: A $3.4 million decrease reflects lower than expected claims severity primarily in the 2012, 2014, 2016 and 2017 accident years, partially offset by increases in the 2007 and 2013 accident years recognizing higher than anticipated claims severity. The $8.9 million reduction of prior accident year loss reserves related to Reinsurance Operations was from the property lines for accident years 2007, 2009 through 2012, 2015, and 2016 partially offset by increases in the 2013, 2014, and 2017 accident years. The accident year changes were based on a review of the experience reported from cedants. During 2017, the Company reduced its prior accident year loss reserves by $53.9 million, which consisted of a $39.4 million decrease related to Commercial Specialty, $1.6 million decrease related to Specialty Property, $5.0 million decrease related to Farm, Ranch, & Stable, and a $7.9 million decrease related to Reinsurance Operations. The $39.4 million reduction of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • General Liability: A $26.9 million reduction in aggregate with $6.9 million of favorable development in the construction defect reserve category and $20.0 million of favorable development in the other general liability reserve categories. The favorable development in the construction defect reserve category recognizes lower than anticipated claims frequency and severity which led to reductions primarily in the 2005 through 2016 accident years. For the other general liability reserve categories, lower than expected claims severity was the primary driver of the favorable development mainly in the 2005 through 2014 accident years. • Professional Liability: A $5.8 million decrease in aggregate primarily reflects lower than expected claims severity in the 2006 through 2008 and 2011 through 2012 accident years. • Property: A $6.3 million reduction in aggregate with $4.0 million of favorable development in the property excluding catastrophe reserve categories and $2.3 million of favorable development in the property catastrophe reserve categories. The favorable development in the reserve categories excluding catastrophe experience reflects lower than expected claims severity in the 2011 through 2015 accident years. For the property catastrophe reserve categories, lower than anticipated claims severity was the driver of the favorable development in the 2011 through 2016 accident years. • Workers Compensation: A $0.5 million reduction primarily due to lower than expected case incurred emergence in the 2011 accident year. The $1.6 million reduction of prior accident year loss reserves related to Specialty Property primarily consisted of the following: • Property: A $4.0 million reduction in the property reserve categories. The decrease mainly reflects lower than anticipated claims severity primarily in the 2012, 2013, 2015, and 2016 accident years. • General Liability: A $2.4 million increase in the 2015 accident year recognizes higher than expected claims severity, partially offset by a decrease in the 2016 accident year mainly due to lower than anticipated claims severity. The $5.0 reduction of prior accident year loss reserves related to Farm, Ranch, & Stable primarily consisted of the following: • Property: A $2.1 million decrease mainly in the 2016 accident year primarily reflects lower than expected claims severity. • Liability: A $2.9 million decrease primarily reflects lower than expected claims severity in the 2015 and 2016 accident years. The $7.9 million reduction of prior accident year loss reserves related to Reinsurance Operations was primarily from the property lines for accident years 2008 through 2016. Ultimate losses were lowered in these accident years based on reviews of the experience reported from cedants. Prior to 2001, the Company underwrote multi-peril business insuring general contractors, developers, and sub-contractors primarily involved in residential construction that has resulted in significant exposure to construction defect (“CD”) claims. The Company’s reserves for CD claims are established based upon management’s best estimate in consideration of known facts, existing case law and generally accepted actuarial methodologies. However, due to the inherent uncertainty concerning this type of business, the ultimate exposure for these claims may vary significantly from the amounts currently recorded. As of December 31, 2019 and 2018, gross reserves for CD claims were $36.9 million and $42.4 million, respectively, and net reserves for CD claims were $35.4 million and $39.3 million, respectively. The Company has exposure to asbestos and environmental (“A&E”) claims. The asbestos exposure primarily arises from the sale of product liability insurance, and the environmental exposure arises from the sale of general liability and commercial multi-peril insurance. In establishing the liability for unpaid losses and loss adjustment expenses related to A&E exposures, management considers facts currently known and the current state of the law and coverage litigation. Liabilities are recognized for known claims (including the cost of related litigation) when sufficient information has been developed to indicate the involvement of a specific insurance policy, and management can reasonably estimate its liability. In addition, liabilities have been established to cover additional exposures on both known and unasserted claims. Estimates of the liabilities are reviewed and updated regularly. Case law continues to evolve for such claims, and uncertainty exists about the outcome of coverage litigation and whether past claim experience will be representative of future claim experience. Included in net unpaid losses and loss adjustment expenses as of December 31, 2019, 2018, and 2017 were IBNR reserves of $27.1 million, $27.4 million, and $26.9 million, respectively, and case reserves of approximately $2.0 million, $2.1 million, and $3.3 million, respectively, for known A&E-related claims. The following table shows the Company’s gross reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Gross reserve for A&E losses and loss adjustment expenses – beginning of period $ 50,445 $ 51,873 $ 51,919 Plus: Change in incurred losses and loss adjustment expenses (2 ) (1 ) 1,470 Less: Payments 1,618 1,427 1,516 Gross reserves for A&E losses and loss adjustment expenses – end of period $ 48,825 $ 50,445 $ 51,873 The following table shows the Company’s net reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Net reserve for A&E losses and loss adjustment expenses – beginning of period $ 29,524 $ 30,124 $ 29,890 Plus: Change in incurred losses and loss adjustment expenses (1 ) — 967 Less: Payments 490 600 733 Net reserves for A&E losses and loss adjustment expenses – end of period $ 29,033 $ 29,524 $ 30,124 Establishing reserves for A&E and other mass tort claims involves more judgment than other types of claims due to, among other things, inconsistent court decisions, an increase in bankruptcy filings as a result of asbestos-related liabilities, and judicial interpretations that often expand theories of recovery and broaden the scope of coverage. The insurance industry continues to receive a substantial number of asbestos-related bodily injury claims, with an increasing focus being directed toward other parties, including installers of products containing asbestos rather than against asbestos manufacturers. This shift has resulted in significant insurance coverage litigation implicating applicable coverage defenses or determinations, if any, including but not limited to, determinations as to whether or not an asbestos-related bodily injury claim is subject to aggregate limits of liability found in most comprehensive general liability policies. As of December 31, 2019, 2018, and 2017, the survival ratio on a gross basis for the Company’s open A&E claims was 32.1 years, 24.2 years, and 20.7 years, respectively. As of December 31, 2019, 2018, and 2017, the survival ratio on a net basis for the Company’s open A&E claims was 47.8 years, 35.7 years, and 35.6 years, respectively. The survival ratio, which is the ratio of gross or net reserves to the 3-year average of annual paid claims, is a financial measure that indicates how long the current amount of gross or net reserves are expected to last based on the current rate of paid claims. Line of Business Categories The following is information, presented by lines of business with similar characteristics including similar payout patterns, about incurred and paid claims development as of December 31, 2019, net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities included within the net incurred claims amounts. The years included represent the number of years for which claims incurred typically remain outstanding but need not exceed 10 years including the most recent report period presented. The information about incurred and paid claims development for the years ended December 31, 2010 to 2019, is presented as required supplementary unaudited information. Commercial Specialty Property and Casualty Methodologies Commercial Specialty’s internal actuarial reserve reviews were completed for loss and allocated loss adjustment expenses (“ALAE”) separately for property excluding catastrophe experience, property catastrophes, and casualty reserve categories. The internal actuarial th Commercial Specialty’s cumulative claim frequency has been calculated at the claim level and includes claims closed without payment. Commercial Specialty – Property (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2017 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) 2017 $ 44,785 $ 43,805 $ 45,627 $ 1,468 2,960 2018 60,555 62,219 1,853 2,688 2019 54,853 8,966 2,669 Total $ 162,699 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Commercial Specialty – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2017 2018 2019 (unaudited) (unaudited) 2017 $ 28,541 $ 37,712 $ 42,699 2018 36,161 54,400 2019 34,921 Total 132,020 All outstanding liabilities before 2017, net of reinsurance 2,972 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 33,651 The following is required supplementary information about average historical claims duration as of December 31, 2019: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 Commercial Specialty - Property 61.4 % 24.7 % 10.9 % Commercial Specialty – Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 $ 79,188 $ 101,830 $ 102,252 $ 101,113 $ 94,484 $ 91,368 $ 84,681 $ 82,824 $ 80,012 $ 79,022 $ 6,152 3,528 2011 115,441 117,602 117,288 115,193 108,720 96,361 84,269 87,045 83,825 4,144 3,887 2012 61,340 65,911 65,637 63,359 55,137 52,504 50,022 47,966 6,686 2,411 2013 63,807 68,089 67,702 66,301 64,877 61,487 58,756 4,505 2,548 2014 61,325 60,227 58,042 56,837 56,129 53,955 8,413 2,345 2015 57,262 56,620 57,775 58,392 59,568 10,462 2,101 2016 54,130 53,776 53,584 51,893 9,740 1,927 2017 54,338 54,572 53,385 16,667 1,795 2018 57,879 57,457 27,742 2,062 2019 68,952 51,764 1,747 Total $ 614,779 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Commercial Specialty – Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 $ 5,503 $ 19,926 $ 34,659 $ 50,520 $ 58,913 $ 65,377 $ 67,277 $ 69,615 $ 70,300 $ 71,951 2011 5,451 21,325 41,282 56,562 64,722 72,087 74,839 77,675 78,595 2012 3,500 11,884 22,456 31,231 36,360 39,596 39,899 40,595 2013 6,400 17,881 29,510 38,438 46,272 50,964 52,265 2014 3,968 15,690 26,268 33,697 39,361 42,517 2015 3,336 14,584 25,147 35,816 42,543 2016 4,135 14,027 21,966 34,872 2017 4,914 12,711 22,988 2018 4,297 13,827 2019 5,174 Total 405,327 All outstanding liabilities before 2010, net of reinsurance 65,083 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 274,535 The following is required supplementary information about average historical claims duration as of December 31, 2019: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 8 9 10 Commercial Specialty - Casualty 7.7 % 18.3 % 19.5 % 18.3 % 11.0 % 7.5 % 2.1 % 2.6 % 1.0 % 2.1 % Specialty Property Property and Casualty Methodologies Specialty Property’s internal actuarial reserve reviews were completed for loss and allocated loss adjustment expenses (ALAE) separately for property excluding catastrophe experience, property catastrophes, and casualty reserve categories. The internal actuarial th Specialty Property is primarily comprised of business acquired in the purchase of American Reliable, which occurred on January 1, 2015. The acquisition included the purchase of the business of the legal entity as well as additional books of business written by other Assurant entities. In addition, ceding arrangements subsequent to the date of the acquisition are not consistent with years prior to the acquisition. As a result, it is not practical, nor would it be consistent, to include information for years prior to 2015 in the development tables for Specialty Property. Specialty Property’s cumulative claim frequency has been calculated at the claim level and includes claims closed without payment. Specialty Property – Property (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) 2018 $ 122,164 $ 112,947 $ 3,917 15,093 2019 79,798 7,553 9,695 Total $ 192,745 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Specialty Property – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2018 2019 (unaudited) 2018 $ 99,741 $ 106,755 2019 66,786 Total 173,541 All outstanding liabilities before 2018, net of reinsurance 5,146 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 24,350 The following is required supplementary information about average historical claims duration as of December 31, 2019. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 Specialty Property - Property 86.0 % 6.2 % Specialty Property – Casualty (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2015 2016 2017 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 6,875 $ 8,455 $ 11,230 $ 11,656 $ 11,412 $ 1,155 856 2016 8,249 8,068 7,613 6,713 1,467 854 2017 7,213 6,966 7,515 1,650 503 2018 5,242 5,028 3,194 330 2019 3,986 3,158 234 Total $ 34,654 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Specialty Property – Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 1,301 $ 4,979 $ 6,698 $ 9,129 $ 10,050 2016 1,165 2,654 3,889 4,856 2017 979 2,658 4,502 2018 248 1,339 2019 397 Total 21,144 All outstanding liabilities before 2015, net of reinsurance 1,309 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 14,819 The following is required supplementary information about average historical claims duration as of December 31, 2019: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 Specialty Property - Casualty 11.3 % 24.6 % 19.3 % 17.9 % 8.1 % Farm, Ranch, & Stable Property and Casualty Methodologies Farm, Ranch, & Stable’s internal actuarial reserve reviews were completed for loss and allocated loss adjustment expenses (ALAE) separately for property excluding catastrophe experience, property catastrophes, and casualty reserve categories. The internal actuarial th Farm, Ranch, & Stable is primarily comprised of business acquired in the purchase of American Reliable, which occurred on January 1, 2015. The acquisition included the purchase of the business of the legal entity as well as additional books of business written by other Assurant entities. In addition, ceding arrangements subsequent to the date of the acquisition are not consistent with years prior to the acquisition. As a result, it is not practical, nor would it be consistent, to include information for years prior to 2015 in the development tables for Farm, Ranch, & Stable. Farm, Ranch, & Stable’s cumulative claim frequency has been calculated at the claim level and includes claims closed without payment. Farm, Ranch, & Stable – Property (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) 2018 $ 34,811 $ 32,376 $ 1,704 2,760 2019 37,120 2,332 2,890 Total $ 69,496 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Farm, Ranch, & Stable – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2018 2019 (unaudited) 2018 $ 27,427 $ 30,475 2019 31,461 Total 61,936 All outstanding liabilities before 2018, net of reinsurance 1,289 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 8,849 The following is required supplementary information about average historical claims duration as of December 31, 2019. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 Farm, Ranch, & Stable - Property 84.7 % 9.4 % Farm, Ranch, & Stable – Casualty (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2015 2016 2017 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 12,055 $ 12,052 $ 10,621 $ 10,664 $ 10,383 $ 1,525 475 2016 13,226 13,005 11,977 10,507 2,077 545 2017 12,786 12,171 10,600 4,562 488 2018 9,934 10,559 5,419 529 2019 9,781 6,957 452 Total $ 51,830 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Farm, Ranch, & Stable – Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 2,138 $ 3,778 $ 6,228 $ 6,986 $ 8,481 2016 2,342 4,231 5,954 7,069 2017 1,153 2,145 4,242 2018 1,092 3,225 2019 1,626 Total 24,643 All outstanding liabilities before 2015, net of reinsurance 1,546 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 28,733 The following is required supplementary information about average historical claims duration as of December 31, 2019: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 Farm, Ranch, & Stable - Casualty 16.1 % 15.8 % 19.9 % 9.0 % 14.4 % Reinsurance Lines Property & Casualty Methodologies Reinsurance Operations’ internal reserve reviews were completed for loss and allocated loss adjustment expenses (ALAE) combined for run off treaties and the current book of business. The current book of business is constituted of professional liability portfolios and retrocessions from Bermuda based companies for property catastrophe, marine and casualty business. The reserve reviews were completed based on the latest data reported from the cedants which is typically on a quarter lag. Paid loss, ALAE and Case reserves, shown in the reinsurance category tables below, which are originally based in a foreign currency, are remeasured in U.S. dollars based on the Foreign Exchange (FX) rate at the end of the period. Management’s ultimate selections were based on a review of ultimates reported from the cedants, including loss emergence during the reporting period, and a third party actuarial review completed during the 4 th The Company does not have direct access to claim frequency information underlying certain reinsurance contracts. As a result, the Company does not believe providing claim frequency information is practicable. Reinsurance Lines – Property (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2013 2014 2015 2016 2017 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2013 $ 15,153 $ 9,948 $ 8,197 $ 6,698 $ 6,345 $ 6,471 $ 6,130 $ 332 — 2014 21,787 18,861 14,139 13,590 14,301 13,554 642 — 2015 19,877 16,738 12,526 9,945 9,050 1,005 — 2016 23,646 22,485 12,497 13,021 2,255 — 2017 43,782 50,032 51,711 10,371 — 2018 59,022 66,314 19,511 — 2019 32,442 27,907 — Total $ 192,222 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Reinsurance Lines – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2013 2014 2015 2016 2017 2018 2019 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2013 $ 723 $ 4,008 $ 5,835 $ 5,111 $ 5,255 $ 5,735 $ 5,593 2014 2,243 9,035 10,460 11,182 12,339 12,480 2015 742 5,163 6,768 7,139 7,411 2016 2,071 5,704 7,161 8,514 2017 2,152 20,609 28,079 2018 21 21,608 2019 139 Total 83,824 All outstanding liabilities before 2013, net of reinsurance 859 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 109,257 The following is required supplementary information about average historical claims duration as of December 31, 2019: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 Reinsurance Lines - Property 8.2% 41.5% 16.7% 2.0% 4.6% 4.4% -2.3% Reinsurance Lines – Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 $ 41,831 $ 53,279 $ 57,916 $ 62,628 $ 61,062 $ 61,792 $ 60,701 $ 60,573 $ 60,151 $ 59,426 $ 1,009 — 2011 45,726 48,846 44,692 47,980 46,510 43,657 42,968 42,235 41,826 762 — 2012 15,865 15,624 17,123 17,579 17,360 17,348 16,982 16,449 473 — 2013 1,224 1,262 1,172 1,013 974 974 112 14 — 2014 1,988 2,095 2,060 1,957 1,957 593 590 — 2015 2,908 2,911 2,780 2,780 2,180 2,179 — 2016 3,627 3,627 3,627 3,627 3,627 — 2017 4,358 4,358 4,358 4,356 — 2018 5,573 5,573 5,573 — 2019 13,686 13,575 — Total $ 147,830 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Reinsurance Lines – Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (unaudited) (unaudited) (unaudited) (unaudited) (unau |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 1 0 . Debt The Company’s outstanding debt consisted of the following at December 31, 2019 and 2018: December 31, (Dollars in thousands) 2019 2018 Margin Borrowing Facility $ 73,629 $ 65,818 7.75% Subordinated Notes due 2045 96,864 96,742 7.875% Subordinated Notes due 2047 126,147 126,005 Total $ 296,640 $ 288,565 Margin Borrowing Facility The Company has available a margin borrowing facility. The borrowing rate for this facility is tied to the Fed Funds Effective rate and was approximately 1.9% and 2.7% at December 31, 2019 and 2018, respectively. This facility is due on demand. The borrowings are subject to maintenance margin, which is a minimum account balance that must be maintained. A decline in market conditions could require an additional deposit of collateral. As of December 31, 2019, approximately $88.2 million in securities were deposited as collateral to support borrowings. The amount borrowed against the margin account may fluctuate as routine investment transactions, such as dividends received, investment income received, maturities and pay-downs, impact cash balances. The margin facility contains customary events of default, including, without limitation, insolvency, failure to make required payments, failure to comply with any representations or warranties, failure to adequately assure future performance, and failure of a guarantor to perform under its guarantee. The amount outstanding on the Company’s margin borrowing facility was $73.6 million and $65.8 million as of December 31, 2019 and 2018, respectively. The Company recorded interest expense related to the Margin Borrowing Facility of approximately $1.8 million, $1.4 million, and $1.0 million for the years ended December 31, 2019, 2018, and 2017, respectively. 7.75% Subordinated Notes due 2045 On August 12, 2015, the Company issued $100.0 million in aggregate principal amount of its 2045 Subordinated Notes through an underwritten public offering (the “2045 Notes”). The 2045 Notes bear interest at an annual rate equal to 7.75%, payable quarterly in arrears on February 15, May 15, August 15, and November 15 of each year, commencing November 15, 2015. The 2045 Notes mature on August 15, 2045. The Company has the right to redeem the 2045 Notes in $25 increments, in whole or in part, on and after August 15, 2020, or on any interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the 2045 Notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption. The 2045 Notes are subordinated unsecured obligations and rank (i) senior to the Company’s existing and future capital stock, (ii) senior in right of payment to future junior subordinated debt, (iii) equally in right of payment with any unsecured, subordinated debt that the Company incurs in the future that ranks equally with the 2045 Notes, and (iv) subordinate in right of payment to any of the Company’s existing and future senior debt. In addition, the 2045 Notes are structurally subordinated to all existing and future indebtedness, liabilities and other obligations of the Company’s subsidiaries. The 2045 Notes do not require the maintenance of any financial ratios or specified levels of net worth or liquidity, and do not contain provisions that would afford holders of the 2045 Notes protection in the event of a sudden and dramatic decline in the Company’s credit quality resulting from any highly leveraged transaction, reorganization, restructuring, merger or similar transaction involving the Company that may adversely affect holders. The 2045 Notes do not restrict the Company in any way, now or in the future, from incurring additional indebtedness, including senior indebtedness that would rank senior in right of payment to the 2045 Notes. There is no right of acceleration of maturity of the 2045 Notes in the case of default in the payment of principal, premium, if any, or interest on the 2045 Notes or in the performance of any other obligation of the Company under the 2045 Notes or if the Company defaults on any other debt securities. Holders may accelerate payment of indebtedness on the 2045 Notes only upon the Company’s bankruptcy, insolvency or reorganization. The Company incurred $3.7 million in deferred issuance costs associated with the 2045 Notes, which is being amortized over the term of the 2045 Notes. Interest expense, including amortization of deferred issuance costs, recognized on the 2045 Notes was $7.9 million for each of the years ended December 31, 2019, 2018, and 2017. 7.875% Subordinated Notes due 2047 On March 23, 2017, the Company issued Subordinated Notes due in 2047 in the aggregate principal amount of $120.0 million through an underwritten public offering (the “2047 Notes”). Pursuant to the underwriting agreement, the Company granted the underwriters a 30 day option to purchase up to an additional $18 million aggregate principal amount of the 2047 Notes solely to cover over-allotments, if any. On March 30, 2017, the underwriters exercised their over-allotment option in the amount of $10 million principal amount of the 2047 Notes. As a result, the aggregate principal amount of the 2047 Notes increased to $130.0 million. The sale of the 2047 Notes pursuant to the over-allotment option closed on March 30, 2017. The 2047 Notes bear interest at an annual rate equal to 7.875%, payable quarterly in arrears on January 15, April 15, July 15, and October 15 of each year, commencing July 15, 2017. The 2047 Notes mature on April 15, 2047. The Company has the right to redeem the 2047 Notes in $25 increments, in whole or in part, on and after April 15, 2022, or on any interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the 2047 Notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption. If the Company redeems only a portion of the 2047 Notes on any date of redemption, the Company may subsequently redeem additional 2047 Notes. The 2047 Notes are subordinated unsecured obligations and rank (i) senior to the Company’s existing and future capital stock, (ii) senior in right of payment to future junior subordinated debt, (iii) equally in right of payment with any existing unsecured, subordinated debt that the Company has issued or may issue in the future that ranks equally with the 2047 Notes, including the Company’s 2045 Notes and (iv) subordinate in right of payment to any of the Company’s future senior debt. In addition, the 2047 Notes are structurally subordinated to all existing and future indebtedness, liabilities and other obligations of the Company’s subsidiaries including the Company’s margin borrowing facility. The 2047 Notes do not require the maintenance of any financial ratios or specified levels of net worth or liquidity, and do not contain provisions that would afford holders of the 2047 Notes protection in the event of a sudden and dramatic decline in the Company’s credit quality resulting from any highly leveraged transaction, reorganization, restructuring, merger or similar transaction involving the Company that may adversely affect holders. The 2047 Notes do not restrict the Company in any way, now or in the future, from incurring additional indebtedness, including senior indebtedness that would rank senior in right of payment to the 2047 Notes. There is no right of acceleration of maturity of the 2047 Notes in the case of default in the payment of principal, premium, if any, or interest on the 2047 Notes or in the performance of any other obligation of the Company under the notes or if the Company defaults on any other debt securities. Holders may accelerate payment of indebtedness on the 2047 Notes only upon the Company’s bankruptcy, insolvency or reorganization. The Company incurred $4.2 million in deferred issuance costs associated with the 2047 Notes, which is being amortized over the term of the 2047 Notes. Interest expense, including amortization of deferred issuance costs, recognized on the 2047 Notes was $10.4 million, $10.4 million, and $8.0 million for the years ended December 31, 2019, 2018, and 2017 respectively. The following table represents the amounts recorded for the subordinated notes as of December 31, 2019 and 2018: December 31, 2019 (Dollars in thousands) Outstanding Principal Unamortized Debt Issuance Costs Net Carrying Amount 7.75% Subordinated Notes due 2045 $ 100,000 $ (3,136 ) $ 96,864 7.875% Subordinated Notes due 2047 130,000 (3,853 ) 126,147 $ 230,000 $ (6,989 ) $ 223,011 December 31, 2018 (Dollars in thousands) Outstanding Principal Unamortized Debt Issuance Costs Net Carrying Amount 7.75% Subordinated Notes due 2045 $ 100,000 $ (3,258 ) $ 96,742 7.875% Subordinated Notes due 2047 130,000 (3,995 ) 126,005 $ 230,000 $ (7,253 ) $ 222,747 Co-obligor Transaction On April 25, 2018, Global Indemnity Group, LLC, an indirect wholly owned subsidiary of the Company, became a subordinated co-obligor with respect to the 2045 Notes and the 2047 Notes with the same obligations and duties as the Company under the Indenture (including the due and punctual performance and observance of all of the covenants and conditions to be performed by the Company, including, without limitation, the obligation to pay the principal of, and interest on, the Notes of either series when due whether at maturity, by acceleration, redemption or otherwise), and with the same rights, benefits and privileges of the Company thereunder. Notwithstanding the foregoing, Global Indemnity Group, LLC's obligations (including the obligation to pay the principal of and interest in respect of the Notes of any series) are subject to subordination to all monetary obligations or liabilities of Global Indemnity Group, LLC owing to Global Indemnity Reinsurance, Ltd., a wholly owned subsidiary of the Company, and/or any other regulated reinsurance or insurance company that is a direct or indirect subsidiary of the Company, in addition to indebtedness of Global Indemnity Group, LLC for borrowed money. If the Company pays any amount with respect to the subordinated note obligations, the Company is entitled to be reimbursed by Global Indemnity Group, LLC within 10 business days after a demand is made to Global Indemnity Group, LLC by the Company. In consideration for becoming a subordinated co-obligor on the subordinated notes, Global Indemnity Group, LLC received a promissory note from the Company with a principal amount of $230 million due April 15, 2047 that has since been assigned to an affiliate. This promissory note is eliminated in consolidation. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 1 1 . Leases Effective January 1, 2019, the Company adopted new accounting guidance which increased transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The Company adopted this new accounting guidance using the optional transition method. Under this method, the Company applied the new leases standard at the adoption date and recognized a cumulative effect adjustment of less than $0.1 million to the opening balance sheet of retained earnings. The Company elected the package of practical expedients permitted under the transition guidance within the new standard. In addition, the Company elected the hindsight practical expedient to determine the lease term for existing leases. The Company determines if an arrangement is a lease at inception. Leases with a term of 12 months or less are not recorded on the consolidated balance sheets. For leases with a term of greater than 12 months, lease right-of-use assets (“ROU”) are included in other assets on the consolidated balance sheets and lease liabilities are included in other liabilities on the consolidated balance sheets. Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company’s leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate at the commencement date in determining the present value of future payments. The ROU assets are calculated using the initial lease liability amount, plus any lease payments made at or before the commencement date, minus any lease incentives received, plus any initial direct costs incurred. The Company’s lease agreements may contain both lease and non-lease components which are accounted separately. The Company elected the practical expedient on not separating lease components from non-lease components for its equipment leases. The Company leases office space and equipment under various operating lease arrangements. The Company’s leases have remaining lease terms ranging from 5 months to 11 years. Some building leases have options to extend, terminate, or retract the leased area. The Company did not factor in term extension, terminations, or space retractions into the lease terms used to calculate the right-of-use assets and lease liabilities since it was uncertain as to whether these options would be executed. The Company is also party to certain service contracts. These agreements will continue to be accounted for as service contracts and expensed in the period the services have been provided. As contracts are signed, renewed, or renegotiated, they will be evaluated using the criteria set forth in the new lease guidance to determine if these contracts contain a lease and will be accounted for properly depending upon the terms and language in the contract. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. The components of lease expenses for the year ended December 31, 2019 were as follows: (Dollars in thousands) Operating lease expenses $ 3,293 Short-term lease expenses 7 Total lease expenses $ 3,300 Prior to the adoption of the new accounting guidance, rental expense under operating leases was $3.5 million for the each of the years ended December 31, 2018 and 2017. There was no sublease income for the years ended December 31, 2019, 2018, and 2017. Supplemental cash flow information related to leases was as follows: (Dollars in thousands) Year Ended December 31, 2019 Cash paid for amounts included in the measurement of liabilities: Operating leases $ 2,530 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 13,858 Supplemental balance sheet information related to leases was as follows: The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheets. (Dollars in thousands) Classification on the consolidated balance sheets December 31, 2019 Assets: Operating lease assets Other assets $ 22,761 Liabilities: Operating lease liabilities Other liabilities $ 23,539 Weighted-average remaining lease term Operating leases 10.2 years Weighted-average discount rate Operating leases (1) 2.7 % (1) Represents the Company’s incremental borrowing rate At December 31, 2019, future minimum lease payments under non-cancelable operating leases were as follows: (Dollars in thousands) 2020 $ 1,931 2021 2,779 2022 2,659 2023 2,702 2024 2,746 Thereafter 14,142 Total future minimum lease payments 26,959 Less: amount representing interest 3,420 Present value of minimum lease payments $ 23,539 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | 12. Shareholders’ Equity Dividend Restriction The ability of Global Indemnity Limited to pay dividends is subject to Cayman Island regulations. Under Cayman Islands law, dividends and distributions may only be made from distributable reserves or from amounts standing to the credit of the Company’s share premium account, together with any reserve established by the revaluation of the Company’s asset, subject to the ability of the Company to meet its obligations in the ordinary course as they fall due. Distributable reserves represents the accumulated realized profits and losses of Global Indemnity Limited on a standalone basis, which is $270.8 million as of December 31, 2019. Share premium represents the excess of the consideration paid upon the initial issuance of any share over the par value. As of December 31, 2019, share premium was $442.4 million. Reserves established by the revaluation of the Company’s asset were $17.6 million as of December 31, 2019. As of December 31, 2019, the maximum dividends and distributions allowable under Cayman Island law is $730.8 million. Since the Company is a holding company and has no direct operations, its ability to pay dividends depends, in part, on the ability of its subsidiaries to pay dividends. Global Indemnity Reinsurance and the U.S. insurance subsidiaries are subject to significant regulatory restrictions limiting their ability to declare and pay dividends. See Note 18 for additional information regarding dividend limitations imposed on Global Indemnity Reinsurance and the U.S. insurance subsidiaries. Dividend Program During the fourth quarter of 2017, Global Indemnity announced the adoption of a dividend program. Although subject to the absolute discretion of the Board of Directors and factors, conditions, and prospects as such may exist from time to time when the Board of Directors considers the advisability of declaring a quarterly dividend, the Company currently anticipates a dividend rate of $0.25 per share per quarter ($1.00 per share per year). Dividends Dividend payments of $0.25 per ordinary share per quarter were declared during the year ended December 31, 2019 as follows: Approval Date Record Date Payment Date Total Dividends Paid (Dollars in thousands) February 10, 2019 March 22, 2019 March 29, 2019 $ 3,521 June 2, 2019 June 21, 2019 June 28, 2019 3,525 September 15, 2019 September 26, 2019 October 2, 2019 3,528 December 8, 2019 December 24, 2019 December 31, 2019 3,532 Various (1) Various Various 268 Total $ 14,374 (1) Represents dividends declared on unvested shares, net of forfeitures. Dividend payments of $0.25 per ordinary share per quarter were declared during the year ended December 31, 2018 as follows: Approval Date Record Date Payment Date Total Dividends Paid (Dollars in thousands) March 4, 2018 March 21, 2018 March 29, 2018 $ 3,499 June 3, 2018 June 22, 2018 June 29, 2018 3,502 September 16, 2018 September 27, 2018 October 1, 2018 3,504 December 2, 2018 December 24, 2018 December 31, 2018 3,506 Various (1) Various Various 197 Total $ 14,208 (1) Represents dividends declared on unvested shares, net of forfeitures. There were no dividends declared during the year ended December 31, 2017. As of December 31, 2019 and 2018, accrued dividends on unvested shares, which were included in other liabilities on the consolidated balance sheets, were $0.3 million and $0.2 million, respectively. Repurchases and Redemptions of the Company’s Ordinary Shares The Company allows employees to surrender A ordinary shares as payment for the tax liability incurred upon the vesting of restricted stock that was issued under the Company’s share incentive plan in effect at the time of issuance. During 2019, 2018, and 2017, the Company purchased an aggregate of 27,028, 45,233 and 29,551, respectively, of surrendered A ordinary shares from its employees for $0.9 million, $1.8 million and $1.2 million, respectively. All shares purchased from employees by the Company are held as treasury stock and recorded at cost until formally retired by the company. In 2015, the Company entered into a redemption agreement with certain affiliates of the Fox Paine Funds to redeem 8,260,870 of its ordinary shares. In conjunction with the 2015 redemption, the Company acquired rights, expiring year end 2019, to redeem an additional 3,397,031 ordinary shares for $78.1 million, which amount was subject to an annual 3% increase. On December 29, 2017, Global Indemnity acquired 3,397,031 of its A ordinary shares for approximately $83.0 million in the aggregate (approximately $24.44 per share) from former investors in the Fox Paine Funds. See Note 12 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2015 Annual Report on Form 10-K for more information on the 2015 redemption. The following table provides information with respect to the A ordinary shares that were surrendered, repurchased, or redeemed in 2019: Period (1) Total Number of Shares Purchased or Redeemed Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plan or Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs A ordinary shares: January 1-31, 2019 7,945 (2) $ 36.23 — — February 1-28, 2019 19,083 (2) $ 34.59 — — Total 27,028 $ 35.07 — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. There were no B ordinary shares that were surrendered, repurchased, or redeemed in 2019. The following table provides information with respect to the A ordinary shares that were surrendered, repurchased, or redeemed in 2018: Period (1) Total Number of Shares Purchased or Redeemed Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plan or Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs A ordinary shares: January 1-31, 2018 26,639 (2) $ 42.02 — — March 1-31, 2018 18,594 (2) $ 37.27 — — Total 45,233 $ 40.07 — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. There were no B ordinary shares that were surrendered, repurchased, or redeemed in 2018. Each A ordinary share has one vote and each B ordinary share has ten votes. As of December 31, 2019, the Company’s A ordinary shares were held by approximately 218 shareholders of record. There were four holders of record of the Company’s B ordinary shares, all of whom are affiliated investment funds of Fox Paine & Company, LLC or an affiliate of an investment fund, as of December 31, 2019. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions Fox Paine Entities As of December 31, 2019, U.N. Co-Investment Fund III (Cayman), L.P. and Fox Paine Capital Fund II International, L.P. (collectively, the “Fox Paine Funds”), which are investment funds managed by Fox Paine & Company, LLC, beneficially own approximately 80.3% of the Company’s total voting power. As of December 31, 2019, Fox Mercury Investments, L.P. and certain of its affiliates (collectively, the “FM Entities”) separately beneficially own approximately 2.1% of the Company’s total voting power. The Fox Paine Funds have the right to appoint a number of the Company’s Directors equal in aggregate to the pro rata percentage of the voting shares of the Company beneficially held by the Fox Paine Funds, FM Entities and Fox Paine & Company, LLC (collectively, “Fox Paine Entities”) so long as the Fox Paine Entities beneficially own shares representing an aggregate 25% or more of the voting power in the Company. The Fox Paine Funds control the election of all of the Company’s Directors due to its controlling share ownership. The Company’s Chairman is the chief executive and founder of Fox Paine & Company, LLC. The Company relies on Fox Paine & Company, LLC to provide management services and other services related to the operations of the Company. Starting in 2014, this fee is adjusted annually to reflect the percentage change in the CPI-U. Management fee expense of $2.1 million, $2.1 million, and $2.2 million was incurred during the years ended December 31, 2019, 2018, and 2017, respectively. Prepaid management fees, which were included in other assets on the consolidated balance sheets, were $1.4 million as of December 31, 2019 and 2018. In addition, Fox Paine & Company, LLC may also propose and negotiate transaction fees with the Company subject to the provisions of the Company’s related party transaction policies, including approval of the Company’s Audit Committee of the Board of Directors, for those services from time to time. Each of the Company’s transactions with Fox Paine & Company, LLC described below was reviewed and approved by the Company’s Audit Committee, which is composed of independent directors, and the Board of Directors (other than Saul A. Fox, Chairman of the Board of Directors of the Company and Chief Executive of Fox Paine & Company, LLC, who is not a member of the Audit Committee and recused himself from the Board of Directors’ deliberations). Recapitalization and Reorganization Transactions Fee On April 25, 2018, the Company and its indirect wholly owned subsidiaries (including Global Indemnity Group, LLC and Global Indemnity Reinsurance) entered into a series of recapitalization and reorganization transactions (collectively, the “Reorganization”) designed to improve the Company’s annual results and long-term financial performance. Pursuant to the Reorganization, the Company’s affiliated group implemented the following, among other things: (i) Global Indemnity Group, LLC became a subordinated co-obligor with the Company under the Company’s 7.75% Subordinated Notes due in 2045 and its 7.875% Subordinated Notes due in 2047, (ii) Global Indemnity Group, LLC agreed to provide capital to Global Indemnity Reinsurance from time to time to satisfy Global Indemnity Reinsurance’s obligations incurred in connection with its insurance and reinsurance business and (iii) Global Indemnity Group, LLC received a promissory note from the Company, which was subsequently assigned within the Company’s affiliated group in connection with the settlement of certain intra-group indebtedness. Fox Paine & Company, LLC acted as financial advisor to the Company's affiliated group in connection with the design, structuring and implementation of the Reorganization. Fox Paine & Company, LLC’s services for the Company’s affiliated group in connection with the Reorganization were performed during the first and second quarter of 2018. The total fee for these services was $12.5 million which was paid in June 2018. As with each of the Company's transactions with Fox Paine & Company, LLC, this transaction was reviewed and approved by the Company's Audit Committee and the Board of Directors (other than Saul A. Fox, Chairman of the Board of Directors of the Company and Chief Executive of Fox Paine & Company, LLC, who is not a member of the Audit Committee and recused himself from the Board of Directors’ deliberations), and, in connection with its review and approval of this transaction, the Audit Committee also engaged its own investment banking firm for advice. Illiquid Investment Fund Divestiture Fee On December 21, 2018, Global Indemnity Group, LLC exited an investment in a private credit fund pursuant to a sale of Global Indemnity Group, LLC’s investment to third parties at par plus accrued interest. Fox Paine & Company, LLC provided services to Global Indemnity Group, LLC in connection with the sale, including conducting due diligence to evaluate the private fund, recommending that Global Indemnity Group, LLC withdraw from the private fund, and conducting extended negotiations with the private fund to secure Global Indemnity Group, LLC’s withdrawal from the private fund on favorable terms. Fox Paine & Company, LLC’s services for Global Indemnity Group, LLC in connection with the sale were performed during the second, third, and fourth quarters of 2018. The total fee for these services was $2.0 million which was paid in May 2019. Other Transactions The Company paid an $11.0 million advisory fee to Fox Paine & Company, LLC in connection with the redemption of 3,397,031 shares on December 29, 2017 as well as other services performed. See Note 12 for additional information on the share redemption. On September 17, 2017, the Company and Fox Paine & Company, LLC entered into a confidentiality agreement whereby Fox Paine & Company, LLC agrees to keep confidential proprietary information, as defined in the confidentiality agreement, it receives regarding the Company from time to time, including proprietary information it may receive from director or director nominees appointed by the Fox Paine Funds. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies Legal Proceedings The Company is, from time to time, involved in various legal proceedings in the ordinary course of business. The Company maintains insurance and reinsurance coverage for such risks in amounts that it considers adequate. However, there can be no assurance that the insurance and reinsurance coverage that the Company maintains is sufficient or will be available in adequate amounts or at a reasonable cost. The Company does not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material adverse effect on its business, results of operations, cash flows, or financial condition. There is a greater potential for disputes with reinsurers who are in runoff. Some of the Company’s reinsurers’ have operations that are in runoff, and therefore, the Company closely monitors those relationships. The Company anticipates that, similar to the rest of the insurance and reinsurance industry, it will continue to be subject to litigation and arbitration proceedings in the ordinary course of business. Commitments In 2014, the Company entered into a $50 million commitment to purchase an alternative investment vehicle which is comprised of European non-performing loans. As of December 31, 2019, the Company has funded $35.8 million of this commitment leaving $14.2 million as unfunded. In 2017, the Company entered into a $50 million commitment to purchase an alternative investment vehicle comprised of stressed and distressed securities and structured products. As of December 31, 2019, the Company has funded $33.0 million of this commitment leaving $17.0 million as unfunded. In 2019, the Company entered into a $10 million commitment to purchase an alternative investment vehicle which is comprised of mortgage loans and other real-estate related investments. As of December 31, 2019, the Company has funded $9.5 million of this commitment leaving $0.5 million as unfunded. Other Commitments The Company is party to a Management Agreement, as amended, with Fox Paine & Company, LLC, whereby in connection with certain management services provided to it by Fox Paine & Company, LLC, the Company agreed to pay an annual management fee to Fox Paine & Company, LLC. See Note 13 above for additional information pertaining to this management agreement. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Plans | 15. Share-Based Compensation Plans Effective January 1, 2017, the Company adopted new accounting guidance which changed several aspects of the accounting for share-based payment transactions. Under the new guidance, all excess tax benefits and tax deficiencies associated with share-based payment awards are required to be recognized as an income tax benefit or expense in net income with the corresponding cash flows recognized as an operating activity in the Consolidated Statement of Cash Flow as opposed to being reported separately as a financing activity. Excess tax benefits and deficiencies are no longer recognized in additional paid-in-capital. The new guidance removes the requirement to delay recognition of any excess tax benefit when there is no current taxes payable to which the benefit would be applied. The new guidance also allows an employer to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur, rather than estimating forfeitures upon issuance of the award. Upon adoption of this new accounting guidance, the Company elected to retain its policy of accruing the compensation cost based on the number of awards that are expected to vest. The adoption of this accounting guidance did not result in any cumulative adjustment or restatement. The provisions of this new guidance were adopted on a prospective basis and did not have a material impact on the Company’s financial position, results of operations or cash flows. The fair value method of accounting recognizes share-based compensation to employees and non-employee directors in the consolidated statements of operations using the grant-date fair value of the stock options and other equity-based compensation expensed over the requisite service and vesting period. For the purpose of determining the fair value of stock option awards, the Company uses the Black-Scholes option-pricing model. An estimation of forfeitures is required when recognizing compensation expense which is then adjusted over the requisite service period should actual forfeitures differ from such estimates. Changes in estimated forfeitures are recognized through a cumulative adjustment to compensation in the period of change. Share Incentive Plan On June 13, 2018, the Company’s Shareholders approved the Global Indemnity Limited 2018 Share Incentive Plan (“the 2018 Plan”). The purpose of the 2018 Plan is to provide the Company a competitive advantage in attracting, retaining, and motivating officers, employees, consultants and non-employee directors, and to provide the Company with a share plan providing incentives linked to the financial results of the Company’s business and increases in shareholder value. Under the 2018 Plan, the Company may issue up to 2.5 million A ordinary shares pursuant to awards granted under the Plan. The 2018 Plan replaced the Global Indemnity Limited Share Incentive Plan, effective since February 2014, which was set to expire pursuant to its terms on February 9, 2019. Options Award activity for stock options granted under the Plan and the weighted average exercise price per share are summarized as follows: Time-Based Options Performance- Based Options Total Options Weighted Average Exercise Price Per Share Options outstanding at January 1, 2017 300,000 300,000 600,000 $ 25.13 Options issued — — — — Options forfeited — — — — Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2017 300,000 300,000 (1) 600,000 25.13 Options issued 300,000 — 300,000 50.00 Options forfeited — (100,000 ) (100,000 ) 38.43 Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2018 600,000 200,000 800,000 35.06 Options issued — — — — Options forfeited — — — — Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2019 600,000 200,000 800,000 $ 35.06 Options exercisable at December 31, 2019 500,000 100,000 600,000 $ 32.01 (1) In 2014, 300,000 options were granted. On March 6, 2018, the existing vesting provisions of these options were eliminated and replaced with new vesting provisions related to return on equity targets for 2018, 2019, and 2020 (“Bonus Years”). 100,000 options were related to the 2018 Bonus Year. Return on equity targets for the 2018 bonus year were not met and therefore, these 100,000 options have been forfeited. 200,000 options remain outstanding. 100,000 options, which were related to return on equity targets for the 2019 bonus year, vested on December 31, 2019. These options are subject to remeasurement of 2019 bonus year results after the third full calendar year following the bonus year. 100,000 options are related to return on equity targets for the 2020 bonus year. These options are subject to remeasurement of 2020 bonus year results after the third full calendar year following the bonus year. During the year ended December 31, 2018, the Company awarded 300,000 options with a strike price of 50.00. There were no stock options granted in 2019 or 2017. The Company recorded $1.1 million, $0.3 million, and ($0.4) million of compensation expense for stock options outstanding under the Plan during the years ended December 31, 2019, 2018, and 2017, respectively. The Company did not receive any proceeds from the exercise of options during 2019, 2018 or 2017 under the Plan. Compensation expense related to options outstanding under the Plan is anticipated to be $1.3 million during the year ended December 31, 2020. Option intrinsic values, which are the differences between the fair value of $29.63 at December 31, 2019 and the strike price of the option, are as follows: Number of Shares Weighted Average Strike Price Intrinsic Value Outstanding 800,000 35.06 $3.5 Million Exercisable 600,000 32.01 $3.5 Million Exercised (1) — — — (1) The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. The options exercisable at December 31, 2019 include the following: Option Price Number of options exercisable $ 17.87 300,000 $ 38.43 (1) 100,000 $ 50.00 200,000 Options exercisable at December 31, 2019 600,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. There were no options granted under the Plan in 2019 or 2017. The weighted average fair value of options granted under the Plan was $3.79 in 2018 using a Black-Scholes option-pricing model and the following weighted average assumptions. 2018 Dividend yield 2.0% Expected volatility 22.47% Risk-free interest rate 2.0% Expected option life 3.3 years The following tables summarize the range of exercise prices of options outstanding at December 31, 2019, 2018, and 2017: Ranges of Exercise Prices Outstanding at December 31, 2019 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $ 17.87 1.7 years $30.00 — $38.43 200,000 (1) $ 38.43 5.0 years $50.00 — $59.99 300,000 $ 50.00 8.0 years Total 800,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. Ranges of Exercise Prices Outstanding at December 31, 2018 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $ 17.87 2.7 years $30.00 — $38.43 200,000 (1) $ 38.43 6.0 years $50.00 — $59.99 300,000 $ 50.00 9.0 years Total 800,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. Ranges of Exercise Prices Outstanding at December 31, 2017 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $ 17.87 3.7 years $30.00 — $37.70 300,000 (1) $ 32.38 6.1 years Total 600,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. Restricted Shares / Restricted Stock Units In addition to stock option grants, the Plan also provides for the granting of restricted shares and restricted stock units to employees and non-employee Directors. The Company recognized compensation expense for restricted stock of $2.8 million, $3.1 million and $4.1 million for 2019, 2018, and 2017, respectively. The total unrecognized compensation expense for the non-vested restricted stock is $2.5 million at December 31, 2019, which will be recognized over a weighted average life of 1.9 years. The Company recognized compensation expense for restricted stock units of $0.4 million for 2019. There was no compensation expense for restricted stock units in 2018 or 2017. The total unrecognized compensation expense for the non-vested restricted stock units is $4.0 million at December 31, 2019, which will be recognized over a weighted average life of 2.8 years. The following table summarizes the restricted stock grants since the 2003 inception of the original share incentive plan: Restricted Stock Awards Year Employees Directors Total Inception through 2016 1,066,615 513,394 1,580,009 2017 22,503 27,121 49,624 2018 38,778 31,646 70,424 2019 43,680 66,919 110,599 1,171,576 639,080 1,810,656 The following table summarizes the restricted stock unit grants since the 2003 inception of the original share incentive plan: Restricted Stock Unit Awards Year Employees Directors Total Inception through 2018 — — — 2019 175,498 — 175,498 175,498 — 175,498 The following table summarizes the non-vested restricted shares activity for the years ended December 31, 2019, 2018, and 2017: Number of Shares Weighted Average Price Per Share Non-vested Restricted Shares at January 1, 2017 299,598 $ 28.02 Shares issued 49,624 39.42 Shares vested (116,111 ) 29.75 Shares forfeited (20,299 ) 28.63 Non-vested Restricted Shares at December 31, 2017 212,812 29.67 Shares issued 70,424 38.85 Shares vested (166,117 ) 30.88 Shares forfeited (3,255 ) 28.91 Non-vested Restricted Shares at December 31, 2018 113,864 33.61 Shares issued 110,599 30.93 Shares vested (150,395 ) 29.86 Shares forfeited (11,828 ) 38.42 Non-vested Restricted Shares at December 31, 2019 62,240 $ 37.00 The following table summarizes the non-vested restricted stock units activity for the years ended December 31, 2019, 2018, and 2017: Number of Restricted Stock Units Weighted Average Price Per Restricted Stock Unit Non-vested Restricted Stock Units at December 31, 2017 and 2018 — $ — Restricted Stock Units issued 175,498 30.18 Restricted Stock Units vested — — Restricted Stock Units forfeited — — Non-vested Restricted Stock Units at December 31, 2019 175,498 $ 30.18 Based on the terms of the restricted share and restricted stock unit grants, all forfeited shares revert back to the Company. During 2017, the Company granted an aggregate of 22,503 A ordinary shares to key employees at a weighted average grant date fair value of $38.21 per share under the Plan. These shares will vest as follows: • 16.5% vested on both January 1, 2018 and January 1, 2019. 17.0% of the granted stock will vest on January 1, 2020. • Subject to Board approval, 50% of granted stock will vests 100%, no later than March 15, 2020, following a re-measurement of 2016 results as of December 31, 2019. During 2017, the Company granted 27,121 A ordinary shares, at a weighted average grant date fair value of $40.42 per share, to non-employee directors of the Company under the Plan. During 2018, the Company granted 38,778 A ordinary shares, with a weighted average grant date value of $40.57 per share, to key employees under the Plan. 11,843 of these shares vested immediately. The remainder will vest as follows: • 16.5% vested on January 1, 2019. 16.5% and 17.0% of the granted stock will vest on January 1, 2020 and January 1, 2021, respectively. • Subject to Board approval, 50% of granted stock will vests 100%, no later than March 15, 2021, following a re-measurement of 2017 results as of December 31, 2020. During 2018, the Company granted 31,646 A ordinary shares, at a weighted average grant date fair value of $36.74 per share, to non-employee directors of the Company under the Plan. During 2019, the Company granted 43,680 restricted A ordinary shares, with a weighted average grant date value of $34.23 per share, to key employees under the Plan. 9,063 of these shares vested immediately. 27,117 of these shares will vest as follows: • 16.5%, 16.5%, and 17.0% of the restricted stock will vest on January 1, 2020, January 1, 2021, and January 1, 2022, respectively. • Subject to Board approval, 50% of restricted stock will vest 100%, no later than March 15, 2022, following a remeasurement of 2018 results as of December 31, 2021. The remaining 7,500 shares will vest 20% on August 26, 2020, August 26, 2021, August 26, 2022, August 26, 2023 and August 26, 2024. In addition, the Company granted 175,498 restricted stock units with a weighted average grant date value of $30.18 per unit, to key employees under the Plan. These restricted stock units will vest as follows: • 10.0%, 20.0%, 30.0%, and 40.0% of the restricted stock units will vest on June 18, 2021, June 18, 2022, June 18, 2023 and June 18, 2024, respectively. During 2019, the Company granted 66,919 A ordinary shares at a weighted average grant date fair value of $28.77 per share, to non-employee directors of the Company under the plan. All of the shares granted to non-employee directors in 2019, 2018, and 2017 were fully vested but subject to certain restrictions. Chief Executive Officer On March 6, 2018, the Company entered into a Chief Executive Agreement (the “Employment Agreement”) with Cynthia Y. Valko, the Company’s Chief Executive Officer. In accordance with the Employment Agreement, the vesting schedule for the 300,000 stock options issued in 2014 (“Tranche 2 Options”) was modified. 100,000 of the Tranche 2 Options were related to the attainment of Return on Equity criteria for 2018 and were scheduled to vest on December 31, 2018. These options were forfeited on December 31, 2018 because the Return on Equity criteria was not met. Of the remaining 200,000 options, 100,000 vested on December 31, 2019 and 100,000 are scheduled to vest on December 31, 2020 if the 2020 Return on Equity criteria is met. Under the terms of the Employment Agreement, Ms. Valko was also granted an additional 300,000 Time-Based Options (“Tranche 3 Options”) with an exercise price of $50 per share. 100,000 of the Tranche 3 Options vested on December 31, 2018. 100,000 of the Tranche 3 Options vested on December 31, 2019. 100,000 of the Tranche 3 Options will vest on December 31, 2020 if Ms. Valko remains employed and in good standing as of such date. Tranche 3 Options expire on the earlier of December 31, 2027 or 90 calendar days after Ms. Valko is neither employed by Global Indemnity nor a member of the Board of Directors. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
401(k) Plan | 16. 401(k) Plan The Company maintains a 401(k) defined contribution plan that covers all eligible U.S. employees. Under this plan, the Company matches 100% of the first 6% contributed by an employee. Vesting on contributions made by the Company is immediate. Total expenses for the plan were $1.9 million for each of the years ended December 31, 2019, 2018, and 2017. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 17. Earnings Per Share Earnings per share have been computed using the weighted average number of ordinary shares and ordinary share equivalents outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share: Years Ended December 31, (Dollars in thousands, except share and per share data) 2019 2018 2017 Net income (loss) $ 70,015 $ (56,696 ) $ (9,551 ) Basic earnings per share: Weighted average shares outstanding - basic 14,191,756 14,088,883 17,308,663 Net income (loss) per share $ 4.93 $ (4.02 ) $ (0.55 ) Diluted earnings per share: Weighted average shares outstanding – diluted (1) 14,334,706 14,088,883 17,308,663 Net income (loss) per share $ 4.88 $ (4.02 ) $ (0.55 ) (1) For the years ended December 31, 2018 and 2017, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss for the period. A reconciliation of weighted average shares for basic earnings per share to weighted average shares for diluted earnings per share is as follows: Years Ended December 31, 2019 2018 2017 Weighted average shares for basic earnings per share 14,191,756 14,088,883 17,308,663 Non-vested restricted stock 20,492 — — Non-vested restricted stock units 3,392 — — Options 119,066 — — Weighted average shares for diluted earnings per share 14,334,706 14,088,883 17,308,663 If the Company had not incurred a loss in the years ended December 31, 2018 and 2017, 14,325,276 and 17,680,209 weighted average shares, respectively, would have been used to compute the diluted loss per share calculations. In addition to the basic shares, weighted average shares for the diluted calculations would have included 76,568 and 157,441 shares of non-vested restricted stock, respectively, and 159,825 and 214,105 share equivalents for options, respectively. The weighted average shares outstanding used to determine dilutive earnings per share for the years ended December 31, 2019 and 2018 do not include 500,000 options which were deemed to be anti-dilutive. The year ended December 31, 2017 did not have any options that were deemed to be anti-dilutive. |
Statutory Financial Information
Statutory Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Statutory Financial Information | 18. Statutory Financial Information GAAP differs in certain respects from Statutory Accounting Principles (“SAP”) as prescribed or permitted by the various U.S. state insurance departments. The principal differences between SAP and GAAP are as follows: • Under SAP, investments in debt securities are primarily carried at amortized cost, while under GAAP the Company records its debt securities at estimated fair value. • Under SAP, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under SAP, certain assets designated as "Non-admitted assets" (such as prepaid expenses) are charged against surplus. • Under SAP, net deferred income tax assets are admitted following the application of specified criteria, with the resulting admitted deferred tax amount being credited directly to surplus. • Under SAP, certain premium receivables are non-admitted and are charged against surplus based upon aging criteria. • Under SAP, the costs and related receivables for guaranty funds and other assessments are recorded based on management's estimate of the ultimate liability and related receivable settlement, while under GAAP such costs are accrued when the liability is probable and reasonably estimable and the related receivable amount is based on future premium collections or policy surcharges from in-force policies. • Under SAP, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. • Under SAP, a provision for reinsurance is charged to surplus based on the authorized status of reinsurers, available collateral, and certain aging criteria, whereas under GAAP, an allowance for uncollectible reinsurance is established based on management’s best estimate of the collectability of reinsurance receivables. • Under SAP, the tax impact of the Tax Cuts and Jobs Act enacted on December 22, 2017 is recorded through surplus, whereas under GAAP, the tax impact is recorded in the Consolidated Statements of Operations. The National Association of Insurance Commissioners (“NAIC”) issues model laws and regulations, many of which have been adopted by state insurance regulators, relating to: (a) risk-based capital ("RBC") standards; (b) codification of insurance accounting principles; (c) investment restrictions; and (d) restrictions on the ability of insurance companies to pay dividends. The Company’s U.S. insurance subsidiaries are required by law to maintain certain minimum surplus on a statutory basis, and are subject to regulations under which payment of a dividend from statutory surplus is restricted and may require prior approval of regulatory authorities. Applying the current regulatory restrictions as of December 31, 2019, the maximum amount of distributions that could be paid in 2020 by the United National insurance companies, the Penn-America insurance companies, and American Reliable under applicable laws and regulations without regulatory approval is approximately $13.2 million, $7.4 million, and $9.0 million, respectively. The Penn-America insurance companies limitation includes $2.4 million that would be distributed to United National Insurance Company or its subsidiary Penn Independent Corporation based on the December 31, 2019 ownership percentages. The Company’s U.S. insurance subsidiaries did not declare or pay any dividends in 2019. The NAIC's RBC model provides a tool for insurance regulators to determine the levels of statutory capital and surplus an insurer must maintain in relation to its insurance and investment risks, as well as its reinsurance exposures, to assess the potential need for regulatory attention. The model provides four levels of regulatory attention, varying with the ratio of an insurance company's total adjusted capital to its authorized control level RBC ("ACLRBC"). If a company’s total adjusted capital is: (a) less than or equal to 200%, but greater than 150% of its ACLRBC (the "Company Action Level"), the company must submit a comprehensive plan to the regulatory authority proposing corrective actions aimed at improving its capital position; (b) less than or equal to 150%, but greater than 100% of its ACLRBC (the "Regulatory Action Level"), the regulatory authority will perform a special examination of the company and issue an order specifying the corrective actions that must be followed; (c) less than or equal to 100%, but greater than 70% of its ACLRBC (the "Authorized Control Level"), the regulatory authority may take any action it deems necessary, including placing the company under regulatory control; and (d) less than or equal to 70% of its ACLRBC (the "Mandatory Control Level"), the regulatory authority must place the company under its control. Based on the standards currently adopted, the Company reported in its 2019 statutory filings that the capital and surplus of the U.S. insurance companies are above the prescribed Company Action Level RBC requirements. The following is selected information for the Company’s U.S. insurance companies, net of intercompany eliminations, where applicable, as determined in accordance with SAP: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Statutory capital and surplus, as of end of period $ 263,793 $ 225,645 $ 274,586 Statutory net income (loss) 39,971 (52,036 ) (19,019 ) Global Indemnity Reinsurance must also prepare annual statutory financial statements. The Bermuda Insurance Act 1978 (the “Insurance Act”) prescribes rules for the preparation and substance of these statutory financial statements which include, in statutory form, a balance sheet, an income statement, a statement of capital and surplus and notes thereto. The statutory financial statements are not prepared in accordance with GAAP or SAP and are distinct from the financial statements prepared for presentation to Global Indemnity Reinsurance's shareholders and under the Bermuda Companies Act 1981 (the “Companies Act”), which financial statements will be prepared in accordance with GAAP. The principal differences between statutory financial statements prepared under the Insurance Act and GAAP are as follows: • Under the Insurance Act, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under the Insurance Act, prepaid expenses and intangible assets are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis. • Under the Insurance Act, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. Under the Companies Act, Global Indemnity Reinsurance may only declare or pay a dividend if it has no reasonable grounds for believing that it is, or would after the payment be, unable to pay its liabilities as they become due, or if the realizable value of its assets would not be less than the aggregate of its liabilities and its issued share capital and share premium accounts. Global Indemnity Reinsurance is also prohibited, without the approval of the BMA, from reducing by 15% or more its total statutory capital or 25% or more of its total statutory capital and surplus as set out in its previous year’s statutory financial statements, and any application for such approval must include such information as the BMA may require. Based upon the total statutory capital plus the statutory surplus as set out in its 2019 statutory financial statements that will be filed in 2020, Global Indemnity Reinsurance could pay a dividend of up to $198.8 million without requesting BMA approval. Global Indemnity Reinsurance is dependent on receiving distributions from its subsidiaries in order to pay the full dividend in cash. Global Indemnity Reinsurance did not declare or pay any dividends during 2019. The following is selected information for Global Indemnity Reinsurance, net of intercompany eliminations, where applicable, as determined in accordance with the Bermuda Insurance Act 1978: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Statutory capital and surplus, as of end of period $ 885,763 $ 835,620 $ 908,433 Statutory net income 34,086 (3,972 ) 29,647 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 19. Segment Information During the 1st quarter of 2019, the Company re-evaluated its Personal Lines segment and determined that Personal Lines should be bifurcated into two reportable segments: Specialty Property and Farm, Ranch, & Stable. In addition, the Company has changed the name of its Commercial Lines segment to Commercial Specialty to better align with its key product offerings. The segment results for the years ended December 31, 2018 and 2017 have been revised to reflect these changes. Please see Note 1 for additional information related to these segment changes. All four segments follow the same accounting policies used for the Company’s consolidated financial statements. For further disclosure regarding the Company’s accounting policies, please see Note 2. The Company manages its business through four business segments. Commercial Specialty offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs. Specialty Property offers specialty personal lines property and casualty insurance products. Farm, Ranch, & Stable offers specialized property and casualty coverage including Commercial Farm Auto and Excess/Umbrella Coverage for the agriculture industry as well as specialized insurance products for the equine mortality and equine major medical industry. Reinsurance Operations provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. The following are tabulations of business segment information for the years ended December 31, 2019, 2018, and 2017. Corporate information is included to reconcile segment data to the consolidated financial statements. 2019: (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 297,332 $ 163,503 (3) $ 87,745 $ 88,281 $ 636,861 Net written premiums $ 258,719 $ 140,670 $ 74,416 $ 88,284 $ 562,089 Net earned premiums $ 237,758 $ 140,232 $ 71,312 $ 75,960 $ 525,262 Other income (loss) — 1,820 132 (136 ) 1,816 Total revenues 237,758 142,052 71,444 75,824 527,078 Losses and Expenses: Net losses and loss adjustment expenses 108,911 75,426 42,700 48,365 275,402 Acquisition costs and other underwriting expenses 96,475 58,768 29,551 23,609 208,403 Income (loss) from segments $ 32,372 $ 7,858 $ (807 ) $ 3,850 43,273 Unallocated Items: Net investment income 42,052 Net realized investment gains 35,342 Corporate and other operating expenses (18,888 ) Interest expense (20,022 ) Income before income taxes 81,757 Income tax expense (11,742 ) Net income $ 70,015 Segment assets $ 713,010 $ 226,388 $ 136,891 $ 325,451 $ 1,401,740 Corporate assets 674,145 Total assets $ 2,075,885 (1) Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018. (2) External business only, excluding business assumed from affiliates. ( 3 ) Includes ($273) of business written by American Reliable that was ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement 2018: (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 249,948 $ 170,168 (6) $ 79,738 $ 48,043 $ 547,897 Net written premiums $ 226,827 $ 127,470 $ 70,217 $ 48,033 $ 472,547 Net earned premiums $ 218,357 $ 128,768 $ 69,248 $ 51,402 $ 467,775 Other income (loss) — 1,782 156 (210 ) 1,728 Total revenues 218,357 130,550 69,404 51,192 469,503 Losses and Expenses: Net losses and loss adjustment expenses 114,476 122,709 41,180 56,260 334,625 Acquisition costs and other underwriting expenses 87,371 (3) 55,760 (4) 29,801 (5) 17,846 190,778 Income (loss) from segments $ 16,510 $ (47,919 ) $ (1,577 ) $ (22,914 ) $ (55,900 ) Unallocated Items: Net investment income 46,342 Net realized investment losses (16,907 ) Corporate and other operating expenses (29,766 ) Interest expense (19,694 ) Loss before income taxes (75,925 ) Income tax benefit 19,229 Net loss $ (56,696 ) Segment assets $ 712,632 $ 270,083 $ 134,056 $ 316,922 $ 1,433,693 Corporate assets 526,573 Total assets $ 1,960,266 (1) Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018. (2) External business only, excluding business assumed from affiliates. (3) Includes federal excise tax of $386 relating to cessions from Commercial Specialty to Reinsurance Operations. (4) Includes federal excise tax of $313 relating to cessions from (5) Includes federal excise tax of $145 relating to cessions from Farm, Ranch, & Stable to Reinsurance Operations. ( 6 ) Includes ($2,062) of business written by American Reliable that was ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. 2017: (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 212,670 $ 173,780 (6) $ 75,997 $ 53,887 $ 516,334 Net written premiums $ 186,448 $ 144,271 $ 65,528 $ 53,933 $ 450,180 Net earned premiums $ 178,798 $ 149,786 $ 66,197 $ 43,253 $ 438,034 Other income 78 6,013 275 216 6,582 Total revenues 178,876 155,799 66,472 43,469 444,616 Losses and Expenses: Net losses and loss adjustment expenses 62,834 112,055 53,743 40,580 269,212 Acquisition costs and other underwriting expenses 75,990 (3) 63,477 (4) 29,636 (5) 14,630 183,733 Income (loss) from segments $ 40,052 $ (19,733 ) $ (16,907 ) $ (11,741 ) $ (8,329 ) Unallocated Items: Net investment income 39,323 Net realized investment gains 1,576 Corporate and other operating expenses (25,714 ) Interest expense (16,906 ) Loss before income taxes (10,050 ) Income tax benefit 499 Net loss $ (9,551 ) Segment assets $ 688,250 $ 249,596 $ 140,785 $ 281,648 $ 1,360,279 Corporate assets 641,390 Total assets $ 2,001,669 (1) Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018. (2) External business only, excluding business assumed from affiliates. (3) Includes federal excise tax of $714 relating to cessions from Commercial Specialty to Reinsurance Operations. (4) Includes federal excise tax of $597 relating to cessions from Specialty Property to Reinsurance Operations. (5) Includes federal excise tax of 265 relating to cessions from Farm, Ranch, & Stable to Reinsurance Operations. ( 6 ) Includes ($1,338) of business written by American Reliable that was ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries | 20. Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries The following tables present condensed consolidating balance sheets at December 31, 2019 and December 31, 2018, condensed consolidating statements of operations, condensed consolidating statements of comprehensive income, and condensed consolidating statements of cash flows for the years ended December 31, 2019, 2018, and 2017. Global Indemnity Group, LLC is a 100% owned subsidiary of the Company. See Note 10 for information on the Company’s debt obligations. Condensed Consolidating Balance Sheets at December 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated ASSETS Total investments $ 44,468 $ 257,317 $ 1,261,757 $ — $ 1,563,542 Cash and cash equivalents 977 2,663 40,631 — 44,271 Investments in subsidiaries 1,218,491 355,777 434,278 (2,008,546 ) — Due from subsidiaries and affiliates (3,612 ) (3,965 ) 7,577 — — Notes receivable – affiliate — 80,049 445,498 (525,547 ) — Interest receivable – affiliate — 5,014 17,258 (22,272 ) — Premiums receivable, net — — 118,035 — 118,035 Reinsurance receivables, net — — 83,938 — 83,938 Funds held by ceding insurers — — 48,580 — 48,580 Federal income taxes receivable — 14,197 (3,208 ) — 10,989 Deferred federal income taxes — 31,833 (756 ) — 31,077 Deferred acquisition costs — — 70,677 — 70,677 Intangible assets — — 21,491 — 21,491 Goodwill — — 6,521 — 6,521 Prepaid reinsurance premiums — — 16,716 — 16,716 Other assets 9,394 12,622 45,021 (6,989 ) 60,048 Total assets $ 1,269,718 $ 755,507 $ 2,614,014 $ (2,563,354 ) $ 2,075,885 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Unpaid losses and loss adjustment expenses $ — $ — $ 630,181 $ — $ 630,181 Unearned premiums — — 314,861 — 314,861 Ceded balances payable — — 20,404 — 20,404 Payable for securities purchased — — 850 — 850 Contingent commissions — — 11,928 — 11,928 Debt — 303,629 — (6,989 ) 296,640 Notes payable – affiliates 520,498 — 5,049 (525,547 ) — Accrued interest payable – affiliates 20,343 — 1,929 (22,272 ) — Other liabilities 2,068 17,600 54,544 — 74,212 Total liabilities 542,909 321,229 1,039,746 (554,808 ) 1,349,076 Shareholders’ equity Total shareholders’ equity 726,809 434,278 1,574,268 (2,008,546 ) 726,809 Total liabilities and shareholders’ equity $ 1,269,718 $ 755,507 $ 2,614,014 $ (2,563,354 ) $ 2,075,885 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Balance Sheets at December 31, 2018 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated ASSETS Total investments $ 55,377 $ 233,479 $ 1,121,799 $ — $ 1,410,655 Cash and cash equivalents 2,221 26,039 71,237 — 99,497 Investments in subsidiaries 1,105,032 296,357 (19,922 ) (1,381,467 ) — Due from subsidiaries and affiliates 584 (2,133 ) 1,549 — — Notes receivable – affiliate — 80,049 847,808 (927,857 ) — Interest receivable – affiliate — 3,869 17,425 (21,294 ) — Premiums receivable, net — — 87,679 — 87,679 Reinsurance receivables, net — — 114,418 — 114,418 Funds held by ceding insurers — — 49,206 — 49,206 Federal income taxes receivable — 4,631 6,235 — 10,866 Deferred federal income taxes — 44,481 4,108 — 48,589 Deferred acquisition costs — — 61,676 — 61,676 Intangible assets — — 22,020 — 22,020 Goodwill — — 6,521 — 6,521 Prepaid reinsurance premiums — — 20,594 — 20,594 Receivable for securities sold — — 15 — 15 Other assets 8,461 5,085 22,237 (7,253 ) 28,530 Total assets $ 1,171,675 $ 691,857 $ 2,434,605 $ (2,337,871 ) $ 1,960,266 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Unpaid losses and loss adjustment expenses $ — $ — $ 680,031 $ — $ 680,031 Unearned premiums — — 281,912 — 281,912 Ceded balances payable — — 14,994 — 14,994 Contingent commissions — — 10,636 — 10,636 Debt — 295,818 — (7,253 ) 288,565 Notes payable – affiliates 520,498 402,310 5,049 (927,857 ) — Accrued interest payable – affiliates 19,499 — 1,795 (21,294 ) — Other liabilities 2,619 13,651 38,799 — 55,069 Total liabilities 542,616 711,779 1,033,216 (956,404 ) 1,331,207 Shareholders’ equity Total shareholders’ equity 629,059 (19,922 ) 1,401,389 (1,381,467 ) 629,059 Total liabilities and shareholders’ equity $ 1,171,675 $ 691,857 $ 2,434,605 $ (2,337,871 ) $ 1,960,266 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Operations for the Year Ended December 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Revenues: Net earned premiums $ — $ — $ 525,262 $ — $ 525,262 Net investment income 2,295 6,563 34,339 (1,145 ) 42,052 Net realized investment gains 574 28,596 6,172 — 35,342 Other income — 30 1,786 — 1,816 Total revenues 2,869 35,189 567,559 (1,145 ) 604,472 Losses and Expenses: Net losses and loss adjustment expenses — — 275,402 — 275,402 Acquisition costs and other underwriting expenses — — 208,403 — 208,403 Corporate and other operating expenses 6,692 10,254 1,942 — 18,888 Interest expense 1,108 19,743 316 (1,145 ) 20,022 Income (loss) before equity in net income of subsidiaries and income taxes (4,931 ) 5,192 81,496 — 81,757 Equity in net income of subsidiaries 74,946 28,401 32,067 (135,414 ) — Income before income taxes 70,015 33,593 113,563 (135,414 ) 81,757 Income tax expense — 1,526 10,216 — 11,742 Net income $ 70,015 $ 32,067 $ 103,347 $ (135,414 ) $ 70,015 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Operations for the Year Ended December 31, 2018 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Revenues: Net earned premiums $ — $ — $ 467,775 $ — $ 467,775 Net investment income 658 9,208 73,317 (36,841 ) 46,342 Net realized investment losses (154 ) (15,284 ) (1,469 ) — (16,907 ) Other income — 20 1,708 — 1,728 Total revenues 504 (6,056 ) 541,331 (36,841 ) 498,938 Losses and Expenses: Net losses and loss adjustment expenses — — 334,625 — 334,625 Acquisition costs and other underwriting expenses — — 190,778 — 190,778 Corporate and other operating expenses 11,317 17,047 1,402 — 29,766 Interest expense 12,994 43,187 354 (36,841 ) 19,694 Income (loss) before equity in net loss of subsidiaries and income taxes (23,807 ) (66,290 ) 14,172 — (75,925 ) Equity in net loss of subsidiaries (32,889 ) (16,694 ) (73,009 ) 122,592 — Loss before income taxes (56,696 ) (82,984 ) (58,837 ) 122,592 (75,925 ) Income tax benefit — (9,975 ) (9,254 ) — (19,229 ) Net loss $ (56,696 ) $ (73,009 ) $ (49,583 ) $ 122,592 $ (56,696 ) (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Operations for the Year Ended December 31, 2017 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Revenues: Net earned premiums $ — $ — $ 438,034 $ — $ 438,034 Net investment income 361 8,943 74,264 (44,245 ) 39,323 Net realized investment gains (losses) (368 ) 877 1,067 — 1,576 Other income 6 4,170 2,406 — 6,582 Total revenues (1 ) 13,990 515,771 (44,245 ) 485,515 Losses and Expenses: Net losses and loss adjustment expenses — — 269,212 — 269,212 Acquisition costs and other underwriting expenses — — 183,733 — 183,733 Corporate and other operating expenses 16,807 (11,595 ) 20,502 — 25,714 Interest expense 18,349 42,332 332 (44,107 ) 16,906 Income (loss) before equity in net income (loss) of subsidiaries and income taxes (35,157 ) (16,747 ) 41,992 (138 ) (10,050 ) Equity in net income (loss) of subsidiaries 25,606 (19,018 ) (48,595 ) 42,007 — Loss before income taxes (9,551 ) (35,765 ) (6,603 ) 41,869 (10,050 ) Income tax expense (benefit) — 12,830 (13,329 ) — (499 ) Net income (loss) $ (9,551 ) $ (48,595 ) $ 6,726 $ 41,869 $ (9,551 ) (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Comprehensive Income for the Year Ended December 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Net income $ 70,015 $ 32,067 $ 103,347 $ (135,414 ) $ 70,015 Other comprehensive income, net of tax: Unrealized holding gains 872 1,588 41,520 — 43,980 Equity in other comprehensive income of unconsolidated subsidiaries 38,520 19,734 21,547 (79,801 ) — Portion of other-than-temporary impairment losses recognized in other comprehensive income — — (5 ) — (5 ) Reclassification adjustment for (gains) losses included in net income (552 ) 225 (5,110 ) — (5,437 ) Unrealized foreign currency translation gains — — 302 — 302 Other comprehensive income, net of tax 38,840 21,547 58,254 (79,801 ) 38,840 Comprehensive income, net of tax $ 108,855 $ 53,614 $ 161,601 $ (215,215 ) $ 108,855 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Comprehensive Income for the Year Ended December 31, 2018 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Net loss $ (56,696 ) $ (73,009 ) $ (49,583 ) $ 122,592 $ (56,696 ) Other comprehensive loss, net of tax: Unrealized holding gains (499 ) (2,917 ) (17,332 ) — (20,748 ) Equity in other comprehensive loss of unconsolidated subsidiaries (19,841 ) (8,230 ) (10,120 ) 38,191 — Portion of other-than-temporary impairment losses recognized in other comprehensive losses — — (3 ) — (3 ) Reclassification adjustment for losses included in net loss 154 1,027 1,269 — 2,450 Unrealized foreign currency translation loss — — (1,885 ) — (1,885 ) Other comprehensive loss, net of tax (20,186 ) (10,120 ) (28,071 ) 38,191 (20,186 ) Comprehensive loss, net of tax $ (76,882 ) $ (83,129 ) $ (77,654 ) $ 160,783 $ (76,882 ) (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Comprehensive Income for the Year Ended December 31, 2017 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Net income (loss) $ (9,551 ) $ (48,595 ) $ 6,726 $ 41,869 $ (9,551 ) Other comprehensive income (loss), net of tax: Unrealized holding gains (losses) (216 ) 9,735 187 (29 ) 9,677 Equity in other comprehensive income (loss) of unconsolidated subsidiaries 9,449 (385 ) 8,955 (18,019 ) — Portion of other-than-temporary impairment losses recognized in other comprehensive income (losses) — — (3 ) — (3 ) Reclassification adjustment for (gains) losses included in net income 368 (619 ) (735 ) 138 (848 ) Unrealized foreign currency translation gains — 224 551 — 775 Other comprehensive income (loss), net of tax 9,601 8,955 8,955 (17,910 ) 9,601 Comprehensive income (loss), net of tax $ 50 $ (39,640 ) $ 15,681 $ 23,959 $ 50 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Cash Flows for the Year Ended December 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Global Indemnity Limited Consolidated Cash flows from operating activities: Net cash provided by (used for) operating activities $ 2,632 $ (23,295 ) $ 53,039 $ 32,376 Cash flows from investing activities: Proceeds from sale of fixed maturities 48,393 101,584 827,344 977,321 Proceeds from sale of equity securities 10,900 249,991 — 260,891 Proceeds from maturity of fixed maturities — — 180,546 180,546 Proceeds from other invested assets 4,363 12,394 — 16,757 Amount paid in connection with derivatives — (7,654 ) — (7,654 ) Purchases of fixed maturities (10,548 ) (26,205 ) (1,092,814 ) (1,129,567 ) Purchases of equity securities (41,815 ) (311,711 ) (11,729 ) (365,255 ) Purchases of other invested assets — (13,283 ) — (13,283 ) Net cash provided by (used for) investing activities 11,293 5,116 (96,653 ) (80,244 ) Cash flows from financing activities: Net borrowings under margin borrowing facility — 7,811 — 7,811 Dividends paid to shareholders (14,222 ) — — (14,222 ) Capital contribution — (13,008 ) 13,008 — Purchase of A ordinary shares (947 ) — — (947 ) Net cash provided by (used for) financing activities (15,169 ) (5,197 ) 13,008 (7,358 ) Net change in cash and cash equivalents (1,244 ) (23,376 ) (30,606 ) (55,226 ) Cash and cash equivalents at beginning of period 2,221 26,039 71,237 99,497 Cash and cash equivalents at end of period $ 977 $ 2,663 $ 40,631 $ 44,271 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations Condensed Consolidating Statements of Cash Flows for the Year Ended December 31, 2018 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Global Indemnity Limited Consolidated Cash flows from operating activities: Net cash provided by (used for) operating activities $ (20,178 ) $ (35,207 ) $ 97,454 $ 42,069 Cash flows from investing activities: Proceeds from sale of fixed maturities 32,980 71,900 188,468 293,348 Proceeds from sale of equity securities — 35,639 — 35,639 Proceeds from maturity of fixed maturities 5,431 7,600 42,151 55,182 Proceeds from other invested assets 1,500 34,499 7,378 43,377 Amount received in connection with derivatives — 4,392 — 4,392 Purchases of fixed maturities (33,327 ) (40,858 ) (296,351 ) (370,536 ) Purchases of equity securities — (36,258 ) — (36,258 ) Purchases of other invested assets — (15,800 ) (509 ) (16,309 ) Acquisition of business — (3,515 ) — (3,515 ) Net cash provided by (used for) investing activities 6,584 57,599 (58,863 ) 5,320 Cash flows from financing activities: Net repayments under margin borrowing facility — (6,412 ) — (6,412 ) Proceeds / (issuance) of notes to affiliates 230,000 (227,690 ) (2,310 ) — Debt restructuring (230,000 ) 230,000 — — Dividends paid to shareholders (14,027 ) — — (14,027 ) Dividends from subsidiaries 20,620 — (20,620 ) — Purchase of A ordinary shares (1,867 ) — — (1,867 ) Net cash provided by (used for) financing activities 4,726 (4,102 ) (22,930 ) (22,306 ) Net change in cash and cash equivalents (8,868 ) 18,290 15,661 25,083 Cash and cash equivalents at beginning of period 11,089 7,749 55,576 74,414 Cash and cash equivalents at end of period $ 2,221 $ 26,039 $ 71,237 $ 99,497 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations Condensed Consolidating Statements of Cash Flows for the Year Ended December 31, 2017 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Global Indemnity Limited Consolidated Cash flows from operating activities: Net cash provided by (used for) operating activities $ (24,927 ) $ (37,165 ) $ 43,183 $ (18,909 ) Cash flows from investing activities: Proceeds from sale of fixed maturities 12,389 54,082 851,968 918,439 Proceeds from sale of equity securities — 32,218 — 32,218 Proceeds from maturity of fixed maturities 10,000 78,925 56,550 145,475 Proceeds from other invested assets — 4,139 8,160 12,299 Amount received in connection with derivatives — 1,464 — 1,464 Purchases of fixed maturities (32,044 ) (254,152 ) (792,003 ) (1,078,199 ) Purchases of equity securities — (36,647 ) — (36,647 ) Purchases of other invested assets — (22,500 ) (1,500 ) (24,000 ) Net cash provided by (used for) investing activities (9,655 ) (142,471 ) 123,175 (28,951 ) Cash flows from financing activities: Net borrowings under margin borrowing facility — 5,584 — 5,584 Redemption of ordinary shares (83,015 ) — — (83,015 ) Proceeds from issuance of subordinated notes 130,000 — — 130,000 Debt issuance cost (4,246 ) — — (4,246 ) Proceeds / (issuance) of notes to affiliates — 120,000 (120,000 ) — Dividends from subsidiaries 100,000 56,265 (156,265 ) — Capital contribution (96,000 ) — 96,000 — Purchase of A ordinary shares (1,159 ) — — (1,159 ) Net cash provided by (used for) financing activities 45,580 181,849 (180,265 ) 47,164 Net change in cash and cash equivalents 10,998 2,213 (13,907 ) (696 ) Cash and cash equivalents at beginning of period 91 5,536 69,483 75,110 Cash and cash equivalents at end of period $ 11,089 $ 7,749 $ 55,576 $ 74,414 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 21. Supplemental Cash Flow Information Taxes and Interest Paid The Company paid the following net federal income taxes and interest for 2019, 2018, and 2017: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Federal income taxes paid $ 251 $ 859 $ 133 Federal income taxes recovered 170 — 19 Interest paid 19,711 19,387 14,504 |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 22. New Accounting Pronouncements Accounting Standards Adopted in 2019 In July, 2019, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance which updated the U.S. Securities and Exchange Commission (“SEC”) sections of the Codification. This Update amends certain disclosure requirements which are redundant, duplicative, overlapping, outdated or superseded. This guidance is effective immediately. The adoption of this new accounting guidance did not have a material impact to the Company’s financial condition, results of operation, or cash flows. In February, 2016, the FASB issued new accounting guidance regarding leases. The new guidance increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. In July, 2018, additional accounting guidance was issued which provided entities with an additional and optional transition method when adopting this new standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative effect adjustment to the opening balance sheet of retained earnings. The lease guidance is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this new accounting guidance on January 1, 2019 using the optional transition method. The Company elected the package of practical expedients permitted under the transition guidance within the new standard. In addition, the Company elected the hindsight practical expedient to determine the lease term for existing leases. Upon adoption, the In March, 2017, the FASB issued new accounting guidance which amended the amortization period for certain purchased callable debt securities held at a premium. Prior to adoption, entities generally amortized the premium as an adjustment of yield over the contractual life of the instruments. Under the new guidance, the amortization period was shortened to the earliest call date. This guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted this guidance on January 1, 2019. The adoption of this new accounting guidance did not have a material impact on its financial condition, results of operations, and cash flows. In April, 2019, the FASB issued new accounting guidance that affected a wide variety of topics in the Codification. The amendments in this update represent changes to clarify certain aspects in the Codification as it relates to Topic 326, Financial Instruments, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments in this update are meant to make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarification. Some of the amendments in this guidance are effective immediately with the remainder effective for fiscal years beginning after December 31, 2019, including interim periods within those fiscal years. The adoption of this new accounting guidance did not have a material impact to the Company’s financial condition, results of operation, or cash flows. Recently Issued Accounting Guidance Not Yet Adopted In December, 2019, the FASB issued updated guidance related to the accounting for income taxes. The updated guidance is intended to simplify the accounting for income taxes by removing several exceptions contained in existing guidance and amending other existing guidance to simplify several other income tax accounting matters. The updated guidance is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Although the Company is still evaluating the impact of this new guidance, the Company does not anticipate that it will have a material impact on its financial condition, results of operations, or cash flows. In May, 2019, the FASB issued new accounting guidance which provides optional targeted transition relief related to the measurement of credit losses on financial instruments. Under the new guidance, companies will have the option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. Election of the fair value option would be applied on an instrument by instrument basis for eligible instruments. This guidance is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of this new accounting guidance will not have a material impact on the Company’s financial condition, results of operations, and cash flows. In August, 2018, the FASB issued new accounting guidance which removed, modified, and added certain disclosures related to Topic 820, Fair Value. This guidance is effective for all fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. The adoption of this new accounting guidance will not have a material impact on the Company’s financial condition, results of operations, and cash flows. In January, 2017, the FASB issued updated guidance that simplifies how an entity is required to test goodwill for impairment by eliminating the requirement to calculate the implied fair value of goodwill (i.e. Step 2 of the current goodwill impairment test). Under the new amendments, an entity may still first assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized, if any. A goodwill impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. This guidance is effective for public business entities’ annual or interim goodwill impairment testing in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this new accounting guidance will not have a material impact on the Company’s financial condition, results of operations, and cash flows. In June, 2016, the FASB issued new accounting guidance addressing the measurement of credit losses on financial instruments. For assets held at amortized cost basis, the new guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of information for credit loss estimates. For available for sale debt securities, credit losses should be measured similar to current GAAP; however, the new guidance requires that credit losses be presented as an allowance rather than as a write-down and allows for the reversal of credit losses in the current period net income. This guidance is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early application of this new guidance is permitted as of the fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. This guidance will be applied using a modified-retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The adoption of this new accounting guidance will not have a material impact on the Company’s financial condition, results of operations, and cash flows. |
Summary of Quarterly Financial
Summary of Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information (Unaudited) | 23. Summary of Quarterly Financial Information (Unaudited) An unaudited summary of the Company’s 2019 and 2018 quarterly performance is as follows: Year Ended December 31, 2019 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net earned premiums $ 122,089 $ 128,201 $ 133,312 $ 141,660 Net investment income 7,219 13,826 11,348 9,659 Net realized investment gains (losses) 10,390 3,590 (2,690 ) 24,052 Net losses and loss adjustment expenses 58,321 70,075 73,583 73,423 Acquisition costs and other underwriting expenses 49,743 50,534 53,366 54,760 Income before income taxes 23,894 15,849 6,404 35,610 Net income 19,600 14,663 6,721 29,031 Per share data - Diluted: Net income $ 1.37 $ 1.02 $ 0.47 $ 2.02 Year Ended December 31, 2018 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net earned premiums $ 108,002 $ 113,917 $ 120,528 $ 125,328 Net investment income 11,404 10,954 11,750 12,234 Net realized investment gains (losses) (316 ) 2,830 5,319 (24,740 ) Net losses and loss adjustment expenses 56,072 58,861 80,493 139,199 Acquisition costs and other underwriting expenses 45,003 47,513 48,680 49,582 Income (loss) before income taxes 4,448 5,793 436 (86,602 ) Net income (loss) 5,701 7,192 3,728 (73,317 ) Per share data - Diluted: Net income (loss) $ 0.40 $ 0.50 $ 0.26 $ (5.20 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 24. Subsequent events On February 9, 2020, the Company’s Board of Directors approved a dividend payment of $0.25 per ordinary share to be paid on March 31, 2020 to all shareholders of record as of the close of business on March 24, 2020. |
Summary of Investments - Other
Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Summary Of Investments Other Than Investments In Related Parties [Abstract] | |
Summary of Investments - Other Than Investments in Related Parties | GLOBAL INDEMNITY LIMITED IN RELATED PARTIES (In thousands) As of December 31, 2019 Cost * Value Amount Included in the Balance Sheet Type of Investment: Fixed maturities: United States government and government agencies and authorities $ 153,906 $ 156,689 $ 156,689 States, municipalities, and political subdivisions 63,256 63,838 63,838 Mortgage-backed and asset-backed securities 677,412 685,015 685,015 Public utilities 22,937 23,724 23,724 All other corporate bonds 314,057 323,893 323,893 Total fixed maturities 1,231,568 1,253,159 1,253,159 Equity securities: Public utilities 4,096 4,096 4,096 Industrial and miscellaneous 259,008 259,008 259,008 Total equity securities 263,104 263,104 263,104 Other long-term investments 47,279 47,279 47,279 Total investments $ 1,541,951 $ 1,563,542 $ 1,563,542 * Original cost of fixed maturities adjusted for amortization of premiums and accretion of discounts; original cost of equity securities and other long-term investments adjusted for income or loss earned on investments in accordance with equity method of accounting. All amounts are shown net of impairment losses. |
Condensed Financial Information
Condensed Financial Information of Registrant (Parent Only) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Registrant (Parent Only) | GLOBAL INDEMNITY LIMITED (Parent Only) Balance Sheets (Dollars in thousands, except share data) Years Ended December 31, ASSETS 2019 2018 Fixed maturities $ 30,938 $ 37,484 Other invested assets 13,530 17,893 Total investments 44,468 55,377 Cash and cash equivalents 977 2,221 Equity in unconsolidated subsidiaries (1) 1,218,491 1,105,032 Due from affiliates (1) — 584 Other assets 9,394 8,461 Total assets $ 1,273,330 $ 1,171,675 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Debt $ — $ — Due to affiliates (1) 3,612 — Intercompany notes payable (1) 520,498 520,498 Interest payable - affiliates (1) 20,343 19,499 Interest payable — — Other liabilities 2,068 2,619 Total liabilities 546,521 542,616 Commitments and contingencies — — Shareholders’ equity: Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued: 10,282,277 and 10,171,954, respectively; A ordinary shares outstanding: 10,167,056 and 10,095,312, respectively; B ordinary shares issued and outstanding: 4,133,366 and 4,133,366, respectively 2 2 Preferred shares, $0.0001 par value, 100,000,000 shares authorized, none issued and outstanding — — Additional paid-in capital 442,403 438,182 Accumulated other comprehensive income (loss), net of tax 17,609 (21,231 ) Retained earnings 270,768 215,132 A ordinary shares in treasury, at cost: 115,221 and 76,642 shares, respectively (3,973 ) (3,026 ) Total shareholders' equity 726,809 629,059 Total liabilities and shareholders’ equity $ 1,273,330 $ 1,171,675 (1) This item has been eliminated in the Company’s Consolidated Financial Statements. See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY LIMITED SCHEDULE II – Condensed Financial Information of Registrant (continued) (Parent Only) Statement of Operations and Comprehensive Income (Dollars in thousands) Years Ended December 31, 2019 2018 2017 Revenues: Net investment income $ 2,295 $ 658 $ 361 Net realized investment gains (losses) 574 (154 ) (368 ) Other income (loss) — — 6 Total revenues 2,869 504 (1 ) Expenses: Intercompany interest expense (1) 844 7,034 2,477 Interest expense 264 5,960 15,872 Other expenses 6,692 11,317 16,807 Loss before equity in earnings of unconsolidated subsidiaries (4,931 ) (23,807 ) (35,157 ) Equity in earnings of unconsolidated subsidiaries (1) 74,946 (32,889 ) 25,606 Net income (loss) 70,015 (56,696 ) (9,551 ) Other comprehensive income (loss), net of tax: Unrealized holding gains (losses) 872 (499 ) (216 ) Equity in other comprehensive income (loss) of unconsolidated subsidiaries (1) 38,520 (19,841 ) 9,449 Reclassification adjustment for (gains) losses included in net income (loss) (552 ) 154 368 Other comprehensive income (loss), net of tax 38,840 (20,186 ) 9,601 Comprehensive income (loss), net of tax $ 108,855 $ (76,882 ) $ 50 (1) This item has been eliminated in the Company’s Consolidated Financial Statements. See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY LIMITED SCHEDULE II – Condensed Financial Information of Registrant – (continued) (Parent Only) Statements of Cash Flows (Dollars in thousands) Years Ended December 31, 2019 2018 2017 Net cash provided by (used in) operating activities $ 2,632 $ (20,178 ) $ (24,927 ) Cash flows from investing activities: Proceeds from sale of fixed maturities 48,393 32,980 12,389 Proceeds from sale of equity securities 10,900 — — Proceeds from maturity of fixed maturities — 5,431 10,000 Proceeds from other invested assets 4,363 1,500 — Purchase of fixed maturities (10,548 ) (33,327 ) (32,044 ) Purchases of equity securities (41,815 ) — — Net cash provided by (used in) investing activities 11,293 6,584 (9,655 ) Cash flows from financing activities: Redemption of ordinary shares — — (83,015 ) Proceeds from issuance of subordinated notes — — 130,000 Debt issuance cost — — (4,246 ) Proceeds from notes to affiliates — 230,000 — Debt restructuring — (230,000 ) — Dividends paid to shareholders (14,222 ) (14,027 ) — Dividends from subsidiaries — 20,620 100,000 Capital contribution — — (96,000 ) Purchase of A ordinary shares (947 ) (1,867 ) (1,159 ) Net cash provided by (used in) financing activities (15,169 ) 4,726 45,580 Net change in cash and equivalents (1,244 ) (8,868 ) 10,998 Cash and cash equivalents at beginning of period 2,221 11,089 91 Cash and cash equivalents at end of period $ 977 $ 2,221 $ 11,089 See Notes to Consolidated Financial Statements included in Item 8. |
Supplementary Insurance Informa
Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | GLOBAL INDEMNITY LIMITED (Dollars in thousands) Segment Deferred Policy Acquisition Costs Future Policy Benefits, Losses, Claims And Loss Expenses Unearned Premiums Other Policy and Benefits Payable At December 31, 2019: Commercial Specialty $ 27,415 $ 390,148 $ 134,433 $ — Specialty Property 18,249 50,334 81,922 — Farm, Ranch, & Stable 9,612 45,601 44,048 — Reinsurance Operations 15,401 144,098 54,458 — At December 31, 2018: Commercial Specialty $ 23,059 $ 417,175 $ 110,704 $ — Specialty Property 18,161 82,722 88,809 — Farm, Ranch, & Stable 8,897 50,923 40,265 — Reinsurance Operations 11,559 129,211 42,134 — At December 31, 2017: Commercial Specialty $ 21,222 $ 419,042 $ 102,191 $ — Specialty Property 18,668 68,900 99,631 — Farm, Ranch, & Stable 8,895 51,355 38,073 — Reinsurance Operations 12,862 95,367 45,502 — Segment Premium Revenue Benefits, Claims, Losses And Settlement Expenses Amortization of Deferred Policy Acquisition Costs Net Written Premium For the year ended December 31, 2019: Commercial Specialty $ 237,758 $ 108,911 $ 56,339 $ 258,719 Specialty Property 140,232 75,426 37,811 140,670 Farm, Ranch, & Stable 71,312 42,700 18,307 74,416 Reinsurance Operations 75,960 48,365 19,872 88,284 Total $ 525,262 $ 275,402 $ 132,329 $ 562,089 For the year ended December 31, 2018: Commercial Specialty $ 218,357 $ 114,476 $ 49,715 $ 226,827 Specialty Property 128,768 122,709 37,854 127,470 Farm, Ranch, & Stable 69,248 41,180 17,536 70,217 Reinsurance Operations 51,402 56,260 12,883 48,033 Total $ 467,775 $ 334,625 $ 117,988 $ 472,547 For the year ended December 31, 2017: Commercial Specialty $ 178,798 $ 62,834 $ 42,008 $ 186,448 Specialty Property 149,786 112,055 38,893 144,271 Farm, Ranch, & Stable 66,197 53,743 17,723 65,528 Reinsurance Operations 43,253 40,580 10,340 53,933 Total $ 438,034 $ 269,212 $ 108,964 $ 450,180 Unallocated Corporate Items Net Investment Income Corporate and Other Operating Expenses For the year ended December 31, 2019 $ 42,052 $ 18,888 For the year ended December 31, 2018 46,342 29,766 For the year ended December 31, 2017 39,323 25,714 |
Reinsurance Earned Premiums
Reinsurance Earned Premiums | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Schedule Of Reinsurance Premiums For Insurance Companies [Abstract] | |
Reinsurance Earned Premiums | GLOBAL INDEMNITY LIMITED EARNED PREMIUMS (Dollars in thousands) Direct Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net For the year ended December 31, 2019: Property & Liability Insurance $ 527,018 $ 78,649 $ 76,893 $ 525,262 14.6 % For the year ended December 31, 2018: Property & Liability Insurance $ 483,229 $ 83,610 $ 68,156 $ 467,775 14.6 % For the year ended December 31, 2017: Property & Liability Insurance $ 440,109 $ 79,886 $ 77,811 $ 438,034 17.8 % |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves | (Dollars in thousands) Description Balance at Beginning of Period Charged (Credited) to Costs and Expenses Charged (Credited) to Other Accounts Other Deductions Balance at End of Period For the year ended December 31, 2019: Investment asset valuation reserves: Mortgage loans $ — $ — $ — $ — $ — Real estate — — — — — Allowance for doubtful accounts: Premiums, accounts and notes receivable $ 2,272 $ 482 $ — $ — $ 2,754 Deferred tax asset valuation allowance — — — — — Reinsurance receivables 8,040 952 — — 8,992 For the year ended December 31, 2018: Investment asset valuation reserves: Mortgage loans $ — $ — $ — $ — $ — Real estate — — — — — Allowance for doubtful accounts: Premiums, accounts and notes receivable $ 2,179 $ 93 $ — $ — $ 2,272 Deferred tax asset valuation allowance — — — — — Reinsurance receivables 8,040 — — — 8,040 For the year ended December 31, 2017: Investment asset valuation reserves: Mortgage loans $ — $ — $ — $ — $ — Real estate — — — — — Allowance for doubtful accounts: Premiums, accounts and notes receivable $ 1,928 $ 251 $ — $ — $ 2,179 Deferred tax asset valuation allowance — — — — — Reinsurance receivables 8,040 — — — 8,040 |
Supplementary Information For P
Supplementary Information For Property Casualty Underwriters | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | |
Supplementary Information For Property Casualty Underwriters | GLOBAL INDEMNITY LIMITED (Dollars in thousands) Deferred Policy Acquisition Costs Reserves for Unpaid Claims and Claim Adjustment Expenses Discount If Any Deducted Unearned Premiums Consolidated Property & Casualty Entities: As of December 31, 2019 $ 70,677 $ 630,181 $ 400 $ 314,861 As of December 31, 2018 61,676 680,031 800 281,912 As of December 31, 2017 61,647 634,664 1,200 285,397 Earned Net Investment Claims and Claim Adjustment Expense Incurred Related To Amortization Of Deferred Policy Paid Claims and Claim Adjustment Premiums Premiums Income Current Year Prior Year Acquisition Costs Expenses Written Consolidated Property & Casualty Entities: For the year ended December 31, 2019 $ 525,262 $ 42,052 $ 308,211 $ (32,809 ) $ 132,329 $ 292,183 $ 562,089 For the year ended December 31, 2018 467,775 46,342 363,423 (28,798 ) 117,988 301,357 472,547 For the year ended December 31, 2017 438,034 39,323 323,112 (53,900 ) 108,964 271,756 450,180 Note: All of the Company's insurance subsidiaries are 100% owned and consolidated. |
Principles of Consolidation a_2
Principles of Consolidation and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Business Segments | During the first quarter of 2019, the Company re-evaluated its Personal Lines segment and determined that Personal Lines should be bifurcated into two reportable segments: Specialty Property and Farm, Ranch, & Stable. This is the result of changing how Specialty Property and Farm, Ranch, & Stable are managed and reported. Specialty Property is managed out of the Company’s Scottsdale, Arizona office; whereas, Farm, Ranch, & Stable is managed out of the Company’s Omaha, Nebraska office. In the past, Farm, Ranch, & Stable reported to the Scottsdale, Arizona office and now it reports directly to the Company’s main headquarters in Bala Cynwyd, Pennsylvania. Results for Specialty Property and Farm, Ranch, & Stable are separately measured, resources are separately allocated to each of these lines, and employees in each line are now being rewarded based on each line’s separate results. Accordingly, the Company now reports Specialty Property and Farm, Ranch, & Stable as two separate reportable segments. In addition, the Company has changed the name of its Commercial Lines segment to Commercial Specialty to better align with its key product offerings. The segment results for the years ended December 31, 2018 and 2017 have been revised to reflect these changes. See Note 19 for additional information regarding segments. The Company manages its business through four business segments: Commercial Specialty, Specialty Property, Farm, Ranch, & Stable, and Reinsurance Operations. The Company’s Commercial Specialty segment offers specialty property and casualty insurance products in the excess and surplus lines marketplace. The Company manages Commercial Specialty by differentiating them into four product classifications: 1) Penn-America, which markets property and general liability products to small commercial businesses through a select network of wholesale general agents with specific binding authority; 2) United National, which markets insurance products for targeted insured segments, including specialty products, such as property, general liability, and professional lines through program administrators with specific binding authority; 3)Diamond State, which markets property, casualty, and professional lines products, which are developed by the Company’s underwriting department by individuals with expertise in those lines of business, through wholesale brokers and also markets through program administrators having specific binding authority; and 4) Vacant Express, which primarily insures dwellings which are currently vacant, undergoing renovation, or are under construction and is marketed through aggregators, brokers, and retail agents. These product classifications comprise the Company’s Commercial Specialty business segment and are not considered individual business segments because each product has similar economic characteristics, distribution, and coverage. The Company’s Specialty Property segment offers specialty personal lines property and casualty insurance products through general and specialty agents with specific binding authority on an admitted basis. The Company’s Farm, Ranch, & Stable segment provides specialized property and casualty coverage including Commercial Farm Auto and Excess/Umbrella Coverage for the agriculture industry as well as specialized insurance products for the equine mortality and equine major medical industry on an admitted basis. These insurance products are sold through wholesalers and retail agents, with a selected number having specific binding authority. Collectively, the Company’s U.S. insurance subsidiaries are licensed in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The Company’s Reinsurance Operations consist solely of the operations of its Bermuda-based wholly-owned subsidiary, Global Indemnity Reinsurance. Global Indemnity Reinsurance is a treaty reinsurer of specialty property and casualty insurance and reinsurance companies. The Company’s Reinsurance Operations segment provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. The consolidated financial statements have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Intercompany Balances and Transactions | On January 1, 2018, the Company adopted new accounting guidance which requires equity investments, except for those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with the changes in fair value recognized in net income. Upon adoption, the Company recorded a cumulative effect adjustment, net of tax, of $10.0 million which reduced accumulated other comprehensive income and increased retained earnings. During the year ended December 31, 2018, net realized investment gains (losses) included a loss of $22.0 million related to the change in the fair value of equity investments in accordance with this new accounting guidance. In addition, under the new guidance, equity investments, are no longer classified into different categories as either trading or available for sale. Prior to the adoption of this new guidance, equity securities were previously classified as available for sale. On January 1, 2018, the Company adopted new accounting guidance regarding the classification of certain cash receipts and cash payments within the statement of cash flows. Upon adoption, the Company made a policy election to use the cumulative earnings approach for presenting distributions received from equity method investees. Under this approach, distributions up to the amount of cumulative equity in earnings recognized will be treated as returns on investment and presented in operating activities and those in excess of that amount will be treated as returns of investment and presented in the investing section. Prior to adoption, all distributions received from equity method investees were presented in the investing section of the consolidated statements of cash flows. The provisions of this accounting guidance were adopted on a retrospective basis. As a result, the consolidated statement of cash flows for the year ended December 31, 2017 that was included in the Form 10-K for the year ended December 31, 2017 was restated. For the year ended December 31, 2017, net cash flows from operating activities was increased by $4.7 million and net cash flows from investing activities was reduced by $4.7 million. The consolidated financial statements include the accounts of Global Indemnity and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Investments | Investments The Company’s investments in fixed maturities, which are classified as available for sale, and equity securities are carried at their fair value. Fair value is defined as 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. The fair values of the Company's fixed maturities and equity securities are determined on the basis of quoted market prices where available. If quoted market prices are not available, the Company uses third party pricing services to assist in determining fair value. In many instances, these services examine the pricing of similar instruments to estimate fair value. The Company purchases bonds with the expectation of holding them to their maturity; however, changes to the portfolio are sometimes required to assure it is appropriately matched to liabilities. In addition, changes in financial market conditions and tax considerations may cause the Company to sell an investment before it matures. The difference between amortized cost and fair value of the Company’s fixed maturity portfolio, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders’ equity and, accordingly, has no effect on net income other than for the credit loss component of impairments deemed to be other than temporary. Equity securities are measured at fair value with the changes in fair value recognized in net income. For investments in limited partnerships where the ownership interest is less than 3%, the Company carries these investments at fair value, and the change in the difference between cost and the fair value of the partnership interests, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders' equity and, accordingly, has no effect on net income other than for impairments deemed to be other than temporary. The Company uses the equity method to account for investments in limited partnerships where its ownership interest exceeds 3%. The equity method of accounting for an investment in a limited partnership requires that its cost basis be updated to account for the income or loss earned on the investment. The income or loss associated with the limited partnerships is reflected in the consolidated statements of operations, and the adjusted cost basis approximates fair value. The Company’s investments in other invested assets were valued at $47.3 million and $50.8 million as of December 31, 2019 and 2018, respectively. These amounts relate to investments in limited partnerships. The Company does not have access to daily valuations, therefore; the estimated fair value of the limited partnerships are based on net asset value as a practical expedient for the limited partnerships. Net realized gains and losses on investments are determined based on the first-in, first-out method. The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each fixed maturity security in an unrealized loss position to assess whether the security has a credit loss. Specifically, the Company considers credit rating, market price, and issuer specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities for which the Company determines that a credit loss is likely are subjected to further analysis through discounted cash flow testing to estimate the credit loss to be recognized in earnings, if any. The specific methodologies and significant assumptions used by asset class are discussed below. Upon identification of such securities and periodically thereafter, a detailed review is performed to determine whether the decline is considered other than temporary. This review includes an analysis of several factors, including but not limited to, the credit ratings and cash flows of the securities and the magnitude and length of time that the fair value of such securities is below cost. For fixed maturities, the factors considered in reaching the conclusion that a decline below cost is other than temporary include, among others, whether: (1) the issuer is in financial distress; (2) the investment is secured; (3) a significant credit rating action occurred; (4) scheduled interest payments were delayed or missed; (5) changes in laws or regulations have affected an issuer or industry; (6) the investment has an unrealized loss and was identified by the Company’s investment manager as an investment to be sold before recovery or maturity; and (7) the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized. According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met, the Company must recognize an other than temporary impairment with the entire unrealized loss being recorded through earnings. For debt securities in an unrealized loss position not meeting these conditions, the Company assesses whether the impairment of a security is other than temporary. If the impairment is deemed to be other than temporary, the Company must separate the other than temporary impairment into two components: the amount representing the credit loss and the amount related to all other factors, such as changes in interest rates. The credit loss represents the portion of the amortized book value in excess of the net present value of the projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. The credit loss component of the other than temporary impairment is recorded through earnings, whereas the amount relating to factors other than credit losses is recorded in other comprehensive income, net of taxes. Prior to the implementation of new accounting guidance on January 1, 2018, management carefully reviewed all equity securities with unrealized losses to determine if a security should be impaired and further focuses on securities that had either: (1) persisted with unrealized losses for more than twelve consecutive months or (2) the value of the investment had been 20% or more below cost for six continuous months or more. On January 1, 2018, the Company adopted new accounting guidance which requires equity investments, except for those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with the changes in fair value recognized in net income. The amount of any write-down, including those that are deemed to be other than temporary, is included in earnings as a realized loss in the period in which the impairment arose. For an analysis of other than temporary losses that were recorded for the years ended December 31, 2019, 2018, and 2017, please see Note 3 below. |
Variable Interest Entities | Variable Interest Entities A Variable Interest Entity (“VIE”) refers to an investment in which an investor holds a controlling interest that is not based on the majority of voting rights. Under the VIE model, the party that has the power to exercise significant management influence and maintain a controlling financial interest in the entity’s economics is said to be the primary beneficiary, and is required to consolidate the entity within their results. Other entities that participate in a VIE, for which their financial interests fluctuate with changes in the fair value of the investment entity’s net assets but do not have significant management influence and the ability to direct the VIE’s significant economic activities are said to have a variable interest in the VIE but do not consolidate the VIE in their financial results. The Company has variable interests in three VIEs for which it is not the primary beneficiary. These investments are accounted for under the equity method of accounting as their ownership interest exceeds 3% of their respective investments. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purpose of the statements of cash flows, the Company considers all liquid instruments with an original maturity of three months or less to be cash equivalents. The Company has a cash management program that provides for the investment of excess cash balances primarily in short-term money market instruments. Generally, bank balances exceed federally insured limits. The carrying amount of cash and cash equivalents approximates fair value. At December 31, 2019 and 2018, the Company had approximately $35.8 million and $77.4 million, respectively, of cash and cash equivalents that was invested in a diversified portfolio of high quality short-term debt securities. |
Valuation of Premium Receivable | Valuation of Premium Receivable The Company evaluates the collectability of premium receivable based on a combination of factors. In instances in which the Company is aware of a specific circumstance where a party may be unable to meet its financial obligations to the Company, a specific allowance for bad debts against amounts due is recorded to reduce the net receivable to the amount reasonably believed by management to be collectible. For all remaining balances, allowances are recognized for bad debts based on the length of time the receivables are past due. The allowance for bad debts was $2.8 million and $2.3 million as of December 31, 2019 and 2018, respectively. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company tests for impairment of goodwill at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of goodwill for impairment using both qualitative and quantitative factors. Impairment of goodwill is recognized only if the carrying amount of the reporting unit, including goodwill, exceeds the fair value of the reporting unit. The amount of the impairment loss would be equal to the excess carrying value of the goodwill over the implied fair value of the reporting unit goodwill. Based on the qualitative assessment performed, t of as of December 31, 2019. Impairment of intangible assets with an indefinite at least annually and more frequently as circumstances warrant here were no impairments Intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated useful lives. The carrying amounts of definite lived intangible assets are regularly reviewed for indicators of impairment in accordance with applicable accounting guidance. Impairment is recognized only if the carrying amount of the intangible asset is in excess of its undiscounted projected cash flows. The impairment is measured as the difference between the carrying amount and the estimated fair value of the asset. As of December 31, 2019, there were no triggering events that occurred during the year that would result in an impairment of definite lived intangible assets. See Note 6 for additional information on goodwill and intangible assets. |
Reinsurance | Reinsurance In the normal course of business, the Company seeks to reduce the loss that may arise from events that cause unfavorable underwriting results by reinsuring certain levels of risk from various areas of exposure with reinsurers. Amounts receivable from reinsurers are estimated in a manner consistent with the reinsured policy and the reinsurance contract. The Company regularly reviews the collectability of reinsurance receivables. An allowance for uncollectible reinsurance receivable is recognized based on the financial strength of the reinsurers and the length of time any balances are past due. Any changes in the allowance resulting from this review are included in net losses and loss adjustment expenses on the consolidated statements of operations during the period in which the determination is made. The allowance for uncollectible reinsurance was $9.0 million and $8.0 million as of December 31, 2019 and 2018, respectively. The applicable accounting guidance requires that the reinsurer must assume significant insurance risk under the reinsured portions of the underlying insurance contracts and that there must be a reasonably possible chance that the reinsurer may realize a significant loss from the transaction. The Company has evaluated its reinsurance contracts and concluded that each contract qualifies for reinsurance accounting treatment pursuant to this guidance. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. The deferred tax asset balance is analyzed regularly by management. This assessment requires significant judgment and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of carryforward periods, and tax planning strategies and/or actions. Management believes that it is more likely than not that the results of future operations can generate sufficient taxable income to realize the remaining deferred income tax assets, and accordingly, the Company has not established any valuation allowances. |
Deferred Acquisition Costs | Deferred Acquisition Costs The costs of acquiring new and renewal insurance and reinsurance contracts include commissions, premium taxes and certain other costs that are directly related to the successful acquisition of new and renewal insurance and reinsurance contracts. The excess of the Company’s costs of acquiring new and renewal insurance and reinsurance contracts over the related ceding commissions earned from reinsurers is capitalized as deferred acquisition costs and amortized over the period in which the related premiums are earned. The amortization of deferred acquisition costs for the years ended December 31, 2019, 2018, and 2017 was $132.3 million, $118.0 million, and $109.0 million, respectively. |
Premium Deficiency | Premium Deficiency A premium deficiency is recognized if the sum of expected loss and loss adjustment expenses and unamortized acquisition costs exceeds related unearned premium after consideration of investment income. This evaluation is done at a distribution and product line level in Insurance Operations and at a treaty level in Reinsurance Operations. Any future expected loss on the related unearned premium is recorded first by impairing the unamortized acquisition costs on the related unearned premium followed by an increase to loss and loss adjustment expense reserves on additional expected loss in excess of unamortized acquisition costs. No premium deficiency reserve existed as of December 31, 2019 or 2018. |
Derivative Instruments | Derivative Instruments The Company uses derivative instruments to manage its exposure to cash flow variability from interest rate risk and limit exposure to severe equity market changes. The derivative instruments are carried on the balance sheet at fair value and included in other assets and other liabilities. Changes in the fair value of the derivative instruments and the periodic net interest settlements under the derivatives instruments are recognized as net realized investment gains (losses) on the consolidated statements of operations. The Company accounts for the interest rate swaps and futures as non-hedge instruments and recognizes the fair value of the interest rate swaps in other assets or other liabilities on the consolidated balance sheets with the changes in fair value recognized as net realized investment gains or losses in the consolidated statements of operations. The Company is ultimately responsible for the valuation of the interest rate swaps. To aid in determining the estimated fair value of the interest rate swaps, the Company relies on the forward interest rate curve and information obtained from a third party financial institution. |
Margin Borrowing Facility | Margin Borrowing Facility The carrying amounts reported in the balance sheet represent the outstanding borrowings. The outstanding borrowings are due on demand; therefore, the cash receipts and cash payments related to the margin borrowing facility are shown net in the consolidated statements of cash flows. |
Subordinated Notes | Subordinated Notes The carrying amounts reported in the balance sheet represent the outstanding balances, net of deferred issuance cost. See Note 10 for details. |
Unpaid Losses and Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses The liability for unpaid losses and loss adjustment expenses represents the Company’s best estimate of future amounts needed to pay losses and related settlement expenses with respect to events insured by the Company. This liability is based upon the accumulation of individual case estimates for losses reported prior to the close of the accounting period with respect to direct business, estimates received from ceding companies with respect to assumed reinsurance, and estimates of unreported losses. The process of establishing the liability for unpaid losses and loss adjustment is complex, requiring the use of informed actuarially based estimates and management’s judgment. In some cases, significant periods of time, up to several years or more, may elapse between the occurrence of an insured loss and the reporting of that loss to the Company. To establish this liability, the Company regularly reviews and updates the methods of making such estimates and establishing the resulting liabilities. Any resulting adjustments are recorded in consolidated statements of operations during the period in which the determination is made. |
Retirement of Treasury Stock | Retirement of Treasury Stock Upon the formal retirement of treasury stock, the Company offsets the par value of the treasury stock that is being retired against Ordinary Shares and reflects any excess of cost over par value as a deduction from Additional Paid-in Capital. |
Share Redemptions | Share Redemptions When shares are redeemed, the Company offsets the par value of the redeemed shares against Ordinary Shares and reflects any excess of cost over par value as a deduction from Retained Earnings. |
Premiums | Premiums Premiums are recognized as revenue ratably over the term of the respective policies and treaties. Unearned premiums are computed on a pro rata basis to the day of expiration. Mandatory reinstatement premiums assessed on reinsurance policies are earned in the period of the loss event that gave rise to the reinstatement premiums. |
Contingent Commissions | Contingent Commissions Certain professional general agencies of the Insurance Operations are paid special incentives, referred to as contingent commissions, when results of business produced by these agencies are more favorable than predetermined thresholds. Similarly, in some circumstances, companies that cede business to the Reinsurance Operations are paid profit commissions based on the profitability of the ceded portfolio. These commissions are charged to other underwriting expenses when incurred. |
Share-Based Compensation | Share-Based Compensation The Company accounts for stock options and other equity based compensation using the modified prospective application of the fair value-based method permitted by the appropriate accounting guidance. See Note 15 for details. |
Earnings per Share | Earnings per Share Basic earnings per share have been calculated by dividing net income available to common shareholders by the weighted-average ordinary shares outstanding. In periods of net income, diluted earnings per share have been calculated by dividing net income available to common shareholders by the sum of the weighted-average ordinary shares outstanding and the weighted-average common share equivalents outstanding, which include options and other equity awards. In periods of net loss, diluted earnings per share is the same as basic earnings per share. See Note 17 for details. Earnings per share have been computed using the weighted average number of ordinary shares and ordinary share equivalents outstanding during the period. |
Foreign Currency | Foreign Currency At times, the Company maintains investments and cash accounts in foreign currencies related to the operations of its business. At period-end, the Company re-measures non-U.S. currency financial assets to their current U.S. dollar equivalent. The resulting gain or loss for foreign denominated fixed maturity investments, if any, is reflected in accumulated other comprehensive income in shareholders’ equity; whereas, the gain or loss on foreign denominated cash accounts and equity securities is reflected in income during the period. Financial liabilities, if any, are generally adjusted within the reserving process. However, for known losses on claims to be paid in foreign currencies, the Company re-measures the liabilities to their current U.S. dollar equivalent each period end with the resulting gain or loss reflected in income during the period. Net transaction gains and losses, primarily comprised of re-measurement of known losses on claims to be paid in foreign currencies, were a gain |
Leases | Leases The Company determines if an arrangement is a lease at inception. Leases with a term of 12 months or less are not recorded on the consolidated balance sheets. Lease right-of-use assets (“ROU”) are included in other assets on the consolidated balance sheets and lease liabilities are included in other liabilities on the consolidated balance sheets. Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company’s leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate at the commencement date in determining the present value of future payments. The ROU asset is calculated using the initial lease liability amount, plus any lease payments made at or before the commencement date, minus any lease incentives received, plus any initial direct costs incurred. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. The Company’s lease agreements may contain both lease and non-lease components which are accounted separately. The Company elected the practical expedient on not separating lease components from non-lease components for its equipment leases. |
Other Income | Other Income In 2019 and 2018, other income is primarily comprised of fee income and foreign exchange gains and losses. In 2017, other income is comprised of fee income on policies issued, commission income, accrued interest on the anticipated indemnification of unpaid loss and loss adjustment expense reserve, and foreign exchange gains and losses. |
Fair Value Measurement | The Company’s invested assets and derivative instruments are carried at their fair value and are categorized based upon a fair value hierarchy: • Level 1 – inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date. • Level 2 – inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly. • Level 3 – inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset. The Company’s pricing vendors provide prices for all investment categories except for investments in limited partnerships whose fair value is based on net asset values as a practical expedient. Two primary vendors are utilized to provide prices for equity and fixed maturity securities. The following is a description of the valuation methodologies used by the Company’s pricing vendors for investment securities carried at fair value: • Equity security prices are received from primary and secondary exchanges. • Corporate and agency bonds are evaluated by utilizing a spread to a benchmark curve. Bonds with similar characteristics are grouped into specific sectors. Inputs for both asset classes consist of trade prices, broker quotes, the new issue market, and prices on comparable securities. • Data from commercial vendors is aggregated with market information, then converted into an option adjusted spread “OAS” matrix and prepayment model used for commercial mortgage obligations (“CMO”). CMOs are categorized with mortgage-backed securities in the tables listed above. For asset-backed securities, spread data is derived from trade prices, dealer quotations, and research reports. For both asset classes, evaluations utilize standard inputs plus new issue data, and collateral performance. The evaluated pricing models incorporate cash flows, broker quotes, market trades, historical prepayment speeds, and dealer projected speeds. • For obligations of state and political subdivisions, an attribute-based modeling system is used. The pricing model incorporates trades, market clearing yields, market color, and fundamental credit research. • U.S. treasuries are evaluated by obtaining feeds from a number of live data sources including primary and secondary dealers as well as inter-dealer brokers. • For mortgage-backed securities, various external analytical products are utilized and purchased from commercial vendors. |
Statutory Income Tax Rates | The statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense |
Tax Uncertainties | The Company applies a more-likely-than-not recognition threshold for all tax uncertainties whereby it only recognizes those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the taxing authorities. |
Loss Reserves and Prior Year Development | When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates. |
Share-Based Compensation | Effective January 1, 2017, the Company adopted new accounting guidance which changed several aspects of the accounting for share-based payment transactions. Under the new guidance, all excess tax benefits and tax deficiencies associated with share-based payment awards are required to be recognized as an income tax benefit or expense in net income with the corresponding cash flows recognized as an operating activity in the Consolidated Statement of Cash Flow as opposed to being reported separately as a financing activity. Excess tax benefits and deficiencies are no longer recognized in additional paid-in-capital. The new guidance removes the requirement to delay recognition of any excess tax benefit when there is no current taxes payable to which the benefit would be applied. The new guidance also allows an employer to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur, rather than estimating forfeitures upon issuance of the award. Upon adoption of this new accounting guidance, the Company elected to retain its policy of accruing the compensation cost based on the number of awards that are expected to vest. The adoption of this accounting guidance did not result in any cumulative adjustment or restatement. The provisions of this new guidance were adopted on a prospective basis and did not have a material impact on the Company’s financial position, results of operations or cash flows. The fair value method of accounting recognizes share-based compensation to employees and non-employee directors in the consolidated statements of operations using the grant-date fair value of the stock options and other equity-based compensation expensed over the requisite service and vesting period. For the purpose of determining the fair value of stock option awards, the Company uses the Black-Scholes option-pricing model. An estimation of forfeitures is required when recognizing compensation expense which is then adjusted over the requisite service period should actual forfeitures differ from such estimates. Changes in estimated forfeitures are recognized through a cumulative adjustment to compensation in the period of change. |
Financial Information | GAAP differs in certain respects from Statutory Accounting Principles (“SAP”) as prescribed or permitted by the various U.S. state insurance departments. The principal differences between SAP and GAAP are as follows: • Under SAP, investments in debt securities are primarily carried at amortized cost, while under GAAP the Company records its debt securities at estimated fair value. • Under SAP, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under SAP, certain assets designated as "Non-admitted assets" (such as prepaid expenses) are charged against surplus. • Under SAP, net deferred income tax assets are admitted following the application of specified criteria, with the resulting admitted deferred tax amount being credited directly to surplus. • Under SAP, certain premium receivables are non-admitted and are charged against surplus based upon aging criteria. • Under SAP, the costs and related receivables for guaranty funds and other assessments are recorded based on management's estimate of the ultimate liability and related receivable settlement, while under GAAP such costs are accrued when the liability is probable and reasonably estimable and the related receivable amount is based on future premium collections or policy surcharges from in-force policies. • Under SAP, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. • Under SAP, a provision for reinsurance is charged to surplus based on the authorized status of reinsurers, available collateral, and certain aging criteria, whereas under GAAP, an allowance for uncollectible reinsurance is established based on management’s best estimate of the collectability of reinsurance receivables. • Under SAP, the tax impact of the Tax Cuts and Jobs Act enacted on December 22, 2017 is recorded through surplus, whereas under GAAP, the tax impact is recorded in the Consolidated Statements of Operations. |
Global Indemnity Reinsurance | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Financial Information | Global Indemnity Reinsurance must also prepare annual statutory financial statements. The Bermuda Insurance Act 1978 (the “Insurance Act”) prescribes rules for the preparation and substance of these statutory financial statements which include, in statutory form, a balance sheet, an income statement, a statement of capital and surplus and notes thereto. The statutory financial statements are not prepared in accordance with GAAP or SAP and are distinct from the financial statements prepared for presentation to Global Indemnity Reinsurance's shareholders and under the Bermuda Companies Act 1981 (the “Companies Act”), which financial statements will be prepared in accordance with GAAP. The principal differences between statutory financial statements prepared under the Insurance Act and GAAP are as follows: • Under the Insurance Act, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under the Insurance Act, prepaid expenses and intangible assets are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis. • Under the Insurance Act, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost and Estimated Fair Value of Investments | The amortized cost and estimated fair value of investments were as follows as of December 31, 2019 and 2018: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Other than temporary impairments recognized in AOCI (1) As of December 31, 2019 Fixed maturities: U.S. treasury and agency obligations $ 153,906 $ 3,580 $ (797 ) $ 156,689 $ — Obligations of states and political subdivisions 63,256 853 (271 ) 63,838 — Mortgage-backed securities 325,448 3,177 (251 ) 328,374 — Asset-backed securities 168,020 937 (420 ) 168,537 — Commercial mortgage-backed securities 183,944 4,369 (209 ) 188,104 — Corporate bonds 239,860 8,478 (79 ) 248,259 — Foreign corporate bonds 97,134 2,247 (23 ) 99,358 — Total fixed maturities 1,231,568 23,641 (2,050 ) 1,253,159 — Equity Securities 263,104 — — 263,104 — Other invested assets 47,279 — — 47,279 — Total $ 1,541,951 $ 23,641 $ (2,050 ) $ 1,563,542 $ — (1) Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”). (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Other than temporary impairments recognized in AOCI (1) As of December 31, 2018 Fixed maturities: U.S. treasury and agency obligations $ 79,766 $ 252 $ (1,163 ) $ 78,855 $ — Obligations of states and political subdivisions 95,629 322 (338 ) 95,613 — Mortgage-backed securities 119,327 313 (1,786 ) 117,854 — Asset-backed securities 185,430 336 (2,012 ) 183,754 — Commercial mortgage-backed securities 206,236 338 (3,852 ) 202,722 — Corporate bonds 452,692 243 (12,080 ) 440,855 — Foreign corporate bonds 118,750 44 (3,292 ) 115,502 — Total fixed maturities 1,257,830 1,848 (24,523 ) 1,235,155 — Common stock 124,747 — — 124,747 — Other invested assets 50,753 — — 50,753 — Total $ 1,433,330 $ 1,848 $ (24,523 ) $ 1,410,655 $ — (1) Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”). |
Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities | The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at December 31, 2019, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Estimated Fair Value Due in one year or less $ 18,857 $ 18,931 Due in one year through five years 266,699 272,472 Due in five years through ten years 181,756 186,057 Due in ten years through fifteen years 25,728 26,338 Due after fifteen years 61,116 64,346 Mortgage-backed securities 325,448 328,374 Asset-backed securities 168,020 168,537 Commercial mortgage-backed securities 183,944 188,104 Total $ 1,231,568 $ 1,253,159 |
Summary of Securities With Gross Unrealized Losses | The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2019. Less than 12 months 12 months or longer (1) Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasury and agency obligations $ 35,633 $ (797 ) $ — $ — $ 35,633 $ (797 ) Obligations of states and political subdivisions 27,180 (271 ) — — 27,180 (271 ) Mortgage-backed securities 93,579 (244 ) 902 (7 ) 94,481 (251 ) Asset-backed securities 43,402 (167 ) 16,152 (253 ) 59,554 (420 ) Commercial mortgage-backed securities 25,698 (196 ) 1,945 (13 ) 27,643 (209 ) Corporate bonds 19,407 (79 ) — — 19,407 (79 ) Foreign corporate bonds 4,822 (20 ) 2,035 (3 ) 6,857 (23 ) Total fixed maturities $ 249,721 $ (1,774 ) $ 21,034 $ (276 ) $ 270,755 $ (2,050 ) (1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2018: Less than 12 months 12 months or longer (1) Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasury and agency obligations $ — $ — $ 67,185 $ (1,163 ) $ 67,185 $ (1,163 ) Obligations of states and political subdivisions 22,802 (57 ) 28,179 (281 ) 50,981 (338 ) Mortgage-backed securities 36,858 (408 ) 60,838 (1,378 ) 97,696 (1,786 ) Asset-backed securities 96,085 (1,342 ) 50,506 (670 ) 146,591 (2,012 ) Commercial mortgage-backed securities 44,596 (878 ) 127,557 (2,974 ) 172,153 (3,852 ) Corporate bonds 285,997 (8,791 ) 115,052 (3,289 ) 401,049 (12,080 ) Foreign corporate bonds 56,543 (1,795 ) 47,494 (1,497 ) 104,037 (3,292 ) Total fixed maturities $ 542,881 $ (13,271 ) $ 496,811 $ (11,252 ) $ 1,039,692 $ (24,523 ) (1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. |
Schedule of Other Than Temporary Impairments on Investments | The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the years ended December 31, 2019, 2018, and 2017: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Fixed maturities: OTTI losses, gross $ (1,897 ) $ (456 ) $ (31 ) Portion of loss recognized in other comprehensive income (pre-tax) — — — Net impairment losses on fixed maturities recognized in earnings (1,897 ) (456 ) (31 ) Equity securities — — (2,575 ) Total $ (1,897 ) $ (456 ) $ (2,606 ) |
Schedule of Credit Losses Recognized in Earnings | The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company as of December 31, 2019, 2018, and 2017 for which a portion of the OTTI loss was recognized in other comprehensive income. Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Balance at beginning of period $ 13 $ 13 $ 31 Additions where no OTTI was previously recorded — — — Additions where an OTTI was previously recorded — — — Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery — — — Reductions reflecting increases in expected cash flows to be collected — — — Reductions for securities sold during the period (13 ) — (18 ) Balance at end of period $ — $ 13 $ 13 |
Schedule of Accumulated Other Comprehensive Income, Net of Tax | Accumulated other comprehensive income, net of tax, as of December 31, 2019 and 2018 was as follows: December 31, (Dollars in thousands) 2019 2018 Net unrealized gains (losses) from: Fixed maturities $ 21,591 $ (22,675 ) Foreign currency fluctuations (1,032 ) (1,334 ) Deferred taxes (2,950 ) 2,778 Accumulated other comprehensive income, net of tax $ 17,609 $ (21,231 ) |
Changes in Accumulated Other Comprehensive Income | The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the years ended December 31, 2019 and 2018: Year Ended December 31, 2019 (Dollars in thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ (19,897 ) $ (1,334 ) $ (21,231 ) Other comprehensive income (loss) before reclassification, before tax 50,325 302 50,627 Amounts reclassified from accumulated other comprehensive income (loss), before tax (6,059 ) — (6,059 ) Other comprehensive income (loss), before tax 44,266 302 44,568 Income tax benefit (expense) (5,728 ) — (5,728 ) Ending balance, net of tax $ 18,641 $ (1,032 ) $ 17,609 Year Ended December 31, 2018 (Dollars in thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ 8,272 $ 711 $ 8,983 Other comprehensive income (loss) before reclassification, before tax (23,891 ) (1,885 ) (25,776 ) Amounts reclassified from accumulated other comprehensive income (loss), before tax 2,923 — 2,923 Other comprehensive income (loss), before tax (20,968 ) (1,885 ) (22,853 ) Income tax expense 2,667 — 2,667 Cumulative effect adjustment, net of tax (9,868 ) (160 ) (10,028 ) Ending balance, net of tax $ (19,897 ) $ (1,334 ) $ (21,231 ) |
Reclassifications Out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive income for the years ended December 31, 2019 and 2018 were as follows: (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive Income Years Ended December 31, Details about Accumulated Other Comprehensive Income Components Affected Line Item in the Consolidated Statements of Operations 2019 2018 Unrealized gains and losses on available for sale securities Other net realized investment (gains) losses $ (7,956 ) $ 2,467 Other than temporary impairment losses on investments 1,897 456 Total before tax (6,059 ) 2,923 Income tax expense (benefit) 622 (473 ) Unrealized gains and losses on available for sale securities, net of tax (5,437 ) 2,450 Foreign currency items Other net realized investment (gains) losses — — Income tax expense — — Foreign currency items, net of tax — — Total reclassifications Total reclassifications, net of tax $ (5,437 ) $ 2,450 |
Components of Net Realized Investment Gains (Losses) | The components of net realized investment gains (losses) for the years ended December 31, 2019, 2018, and 2017 were as follows: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Fixed maturities: Gross realized gains $ 9,675 $ 354 $ 4,066 Gross realized losses (3,616 ) (3,277 ) (3,387 ) Net realized gains (losses) 6,059 (2,923 ) 679 Equity Securities: Gross realized gains 40,730 6,491 4,178 Gross realized losses (6,737 ) (22,592 ) (3,206 ) Net realized gains (losses) 33,993 (16,101 ) 972 Derivatives: Gross realized gains 3,518 3,906 3,555 Gross realized losses (8,228 ) (1,789 ) (3,630 ) Net realized gains (losses) (1) (4,710 ) 2,117 (75 ) Total net realized investment gains (losses) $ 35,342 $ (16,907 ) $ 1,576 (1) Includes periodic net interest settlements related to the derivatives of $1.2 million, $1.9 million, and $3.6 million for the years ended December 31, 2019, 2018, and 2017, respectively. |
Summary of Calculation of Realized Gains and Losses | The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of December 31, 2019: Years Ended December 31, (Dollars in thousands) 2019 2018 Net gains and (losses) recognized during the period on equity securities $ 33,993 $ (16,101 ) Less: Net gains (losses) recognized during the period on equity securities sold during the period 10,846 5,921 Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date $ 23,147 $ (22,022 ) |
Proceeds from Sales and Redemptions of Available-for-Sale Securities | The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the years ended December 31, 2019, 2018, and 2017 were as follows: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Fixed maturities $ 977,321 $ 293,348 $ 918,439 Equity securities 260,891 35,639 32,218 |
Schedule of Investment Income | The sources of net investment income for the years ended December 31, 2019, 2018, and 2017 were as follows: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Fixed maturities $ 36,673 $ 37,085 $ 33,020 Equity securities 7,006 4,037 3,595 Cash and cash equivalents 1,510 1,177 894 Other invested assets 78 6,879 4,741 Total investment income 45,267 49,178 42,250 Investment expense (3,215 ) (2,836 ) (2,927 ) Net investment income $ 42,052 $ 46,342 $ 39,323 |
Schedule of Total Investment Return | The Company’s total investment return on a pre-tax basis for the years ended December 31, 2019, 2018, and 2017 were as follows: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Net investment income $ 42,052 $ 46,342 $ 39,323 Net realized investment gains(losses) 35,342 (16,907 ) 1,576 Change in unrealized holding gains and losses 44,568 (22,853 ) 14,424 Net realized and unrealized investment returns 79,910 (39,760 ) 16,000 Total investment return $ 121,962 $ 6,582 $ 55,323 Total investment return % 7.8 % 0.4 % 3.5 % Average investment portfolio $ 1,558,565 $ 1,522,805 $ 1,597,487 |
Summary of Estimated Fair Values of Bonds Held on Deposit | The fair values were as follows as of December 31, 2019 and 2018: Estimated Fair Value (Dollars in thousands) December 31, 2019 December 31, 2018 On deposit with governmental authorities $ 26,431 $ 25,855 Intercompany trusts held for the benefit of U.S. policyholders 179,116 209,028 Held in trust pursuant to third party requirements 133,122 98,417 Letter of credit held for third party requirements 1,458 2,317 Securities held as collateral 91,229 83,214 Total $ 431,356 $ 418,831 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summarized Information on Location and Gross Amount of Derivatives on Consolidated Balance Sheets | The following table summarizes information on the location and the gross amount of the derivatives on the consolidated balance sheets as of December 31, 2019 and 2018: (Dollars in thousands) December 31, 2019 December 31, 2018 Derivatives Not Designated as Hedging Instruments under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value Interest rate swap agreements Other assets/liabilities $ 200,000 $ (10,275 ) $ 200,000 $ (4,062 ) Futures contracts on bonds (1) Other assets/liabilities 16,894 — — — Futures contracts on equities (1) Other assets/liabilities 57,816 — — — Total $ 274,710 $ (10,275 ) $ 200,000 $ (4,062 ) (1) Futures are settled daily such that their fair value is not reflected in the consolidated statements of financial position |
Summary of Net Gain (Loss) Included in Consolidated Statements of Operations for Changes in Fair Value of Derivatives and Periodic Net Interest Settlements Under Derivatives | The following table summarizes the net gains (losses) included in the consolidated statements of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the years ended December 31, 2019, 2018, and 2017: Consolidated Statements of Years Ended December 31, (Dollars in thousands) Operations Line 2019 2018 2017 Interest rate swap agreements Net realized investment gains (losses) $ (7,449 ) $ 2,117 $ (75 ) Futures contracts on bonds Net realized investment gains (losses) 873 — — Futures contracts on equities Net realized investment gains (losses) 1,866 — — $ (4,710 ) $ 2,117 $ (75 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis | The following table presents information about the Company’s invested assets and derivative instruments measured at fair value on a recurring basis as of December 31, 2019 and 2018, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. As of December 31, 2019 Fair Value Measurements (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 156,689 $ — $ — $ 156,689 Obligations of states and political subdivisions — 63,838 — 63,838 Mortgage-backed securities — 328,374 — 328,374 Commercial mortgage-backed securities — 188,104 — 188,104 Asset-backed securities — 168,537 — 168,537 Corporate bonds — 248,259 — 248,259 Foreign corporate bonds — 99,358 — 99,358 Total fixed maturities 156,689 1,096,470 — 1,253,159 Equity securities 251,448 11,656 — 263,104 Total assets measured at fair value (1) $ 408,137 $ 1,108,126 $ — $ 1,516,263 Liabilities: Derivative instruments $ — $ 10,275 $ — $ 10,275 Total Liabilities measured at fair value $ — $ 10,275 $ — $ 10,275 (1) Excluded from the table above are limited partnerships of $47.3 million at December 31, 2019 whose fair value is based on net asset value as a practical expedient. As of December 31, 2018 Fair Value Measurements (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 78,855 $ — $ — $ 78,855 Obligations of states and political subdivisions — 95,613 — 95,613 Mortgage-backed securities — 117,854 — 117,854 Commercial mortgage-backed securities — 202,722 — 202,722 Asset-backed securities — 183,754 — 183,754 Corporate bonds — 440,855 — 440,855 Foreign corporate bonds — 115,502 — 115,502 Total fixed maturities 78,855 1,156,300 — 1,235,155 Equity securities 124,747 — — 124,747 Total assets measured at fair value (1) $ 203,602 $ 1,156,300 $ — $ 1,359,902 Liabilities: Derivative instruments $ — $ 4,062 $ — $ 4,062 Total liabilities measured at fair value $ — $ 4,062 $ — $ 4,062 (1) Excluded from the table above are limited partnerships of $50.8 million at December 31, 2018 whose fair value is based on net asset value as a practical expedient. |
Current Fair Value of Debt | For the Company’s material debt arrangements, the current fair value of the Company’s debt at December 31, 2019 and 2018 was as follows: December 31, 2019 December 31, 2018 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Margin Borrowing Facility $ 73,629 $ 73,629 $ 65,818 $ 65,818 7.75% Subordinated Notes due 2045 (1) 96,864 100,264 96,742 92,261 7.875% Subordinated Notes due 2047 (2) 126,147 134,462 126,005 120,597 Total $ 296,640 $ 308,355 $ 288,565 $ 278,676 (1) As of December 31, 2019 and 2018, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.1 million and $3.3 million, respectively. (2) As of December 31, 2019 and 2018, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $3.9 million and $4.0 million, respectively. |
Fair Value and Future Funding Commitments Related to These Investments | The following table provides the fair value and future funding commitments related to these investments at December 31, 2019 and 2018. December 31, 2019 December 31, 2018 (Dollars in thousands) Fair Value Future Funding Commitment Fair Value Future Funding Commitment Real Estate Fund, LP (1) $ — $ — $ — $ — European Non-Performing Loan Fund, LP (2) 13,530 14,214 17,893 14,214 Distressed Debt Fund, LP (3) 23,966 17,000 32,860 20,500 Mortgage Debt Fund, LP (4) 9,783 506 — — Total $ 47,279 $ 31,720 $ 50,753 $ 34,714 (1) This limited partnership invests in real estate assets through a combination of direct or indirect investments in partnerships, limited liability companies, mortgage loans, and lines of credit. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company continues to hold an investment in this limited partnership and has written the fair value down to zero. (2) This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. Based on the terms of the partnership agreement, the Company anticipates its interest in this partnership to be redeemed by 2020 unless extended with the consent of the limited partners. (3) This limited partnership invests in stressed and distressed securities and structured products. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. Based on the terms of the partnership agreement, the Company anticipates its interest to be redeemed no later than 2027 unless extended with the consent of the limited partners. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible assets | The following table presents details of the Company’s intangible assets as of December 31, 2019: (Dollars in thousands) Description Weighted Average Amortization Period Cost Accumulated Amortization Net Value Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 3,430 1,870 Agent relationships 10 years 900 444 456 Trade names 7 years 600 435 165 $ 25,800 $ 4,309 $ 21,491 The following table presents details of the Company’s intangible assets as of December 31, 2018: (Dollars in thousands) Description Weighted Average Amortization Period Cost Accumulated Amortization Net Value Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 3,076 2,224 Agent relationships 10 years 900 356 544 Trade names 7 years 600 348 252 $ 25,800 $ 3,780 $ 22,020 |
Expected Amortization Expense | The Company expects that amortization expense for the next five years will be as follows: (Dollars in thousands) 2020 $ 529 2021 522 2022 443 2023 443 2024 443 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Components of Reinsurance Balances | The Company had the following reinsurance balances as of December 31, 2019 and 2018: (Dollars in thousands) December 31, 2019 December 31, 2018 Reinsurance receivables, net $ 83,938 $ 114,418 Collateral securing reinsurance receivables (3,802 ) (11,347 ) Reinsurance receivables, net of collateral $ 80,136 $ 103,071 Allowance for uncollectible reinsurance receivables $ 8,992 $ 8,040 Prepaid reinsurance premiums 16,716 20,594 |
Unsecured Reinsurance Receivable that Exceeded Three Percent of Shareholders' Equity | Unsecured reinsurance receivables include amounts receivable for paid and unpaid losses and loss adjustment expenses, less amounts secured by collateral. (Dollars in thousands) Reinsurance Receivables A.M. Best Ratings (As of December 31, 2019) Munich Re America Corporation $ 44,129 A+ |
Effect of Reinsurance on Premiums Written and Earned | The effect of reinsurance on premiums written and earned is as follows: (Dollars in thousands) Written Earned For the year ended December 31, 2019: Direct business $ 548,618 $ 527,018 Reinsurance assumed 88,243 76,893 Reinsurance ceded (1) (74,772 ) (78,649 ) Net premiums $ 562,089 $ 525,262 For the year ended December 31, 2018: Direct business $ 495,129 $ 483,229 Reinsurance assumed 52,768 68,156 Reinsurance ceded (1) (75,350 ) (83,610 ) Net premiums $ 472,547 $ 467,775 For the year ended December 31, 2017: Direct business $ 433,922 $ 440,109 Reinsurance assumed 82,412 77,811 Reinsurance ceded (1) (66,154 ) (79,886 ) Net premiums $ 450,180 $ 438,034 (1) Includes ceded written premiums of ($0.3) million, ($2.1) million, and ($1.3) million and ceded earned premiums of $2.3 million, $7.3 million and $13.5 million to American Bankers Insurance Company for the years ended December 31, 2019, 2018, and 2017, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income before Income Taxes from its Non-U.S. Subsidiaries and U.S. Subsidiaries | The Company’s income before income taxes from its non-U.S. subsidiaries and U.S. subsidiaries for the years ended December 31, 2019, 2018, and 2017 were as follows: Year Ended December 31, 2019 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 88,282 $ 548,579 $ — $ 636,861 Net written premiums $ 88,285 $ 473,804 $ — $ 562,089 Net earned premiums $ 75,961 $ 449,301 $ — $ 525,262 Net investment income 29,307 26,816 (14,071 ) 42,052 Net realized investment gains 3,121 32,221 — 35,342 Other income (loss) (165 ) 1,981 — 1,816 Total revenues 108,224 510,319 (14,071 ) 604,472 Losses and Expenses: Net losses and loss adjustment expenses 36,502 238,900 — 275,402 Acquisition costs and other underwriting expenses 23,610 184,793 — 208,403 Corporate and other operating expenses 7,462 11,426 — 18,888 Interest expense 1,409 32,684 (14,071 ) 20,022 Income before income taxes $ 39,241 $ 42,516 $ — $ 81,757 Year Ended December 31, 2018 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 48,050 $ 499,847 $ — $ 547,897 Net written premiums $ 48,041 $ 424,506 $ — $ 472,547 Net earned premiums $ 135,826 $ 331,949 $ — $ 467,775 Net investment income 49,699 27,294 (30,651 ) 46,342 Net realized investment losses (669 ) (16,238 ) — (16,907 ) Other income (loss) (210 ) 1,938 — 1,728 Total revenues 184,646 344,943 (30,651 ) 498,938 Losses and Expenses: Net losses and loss adjustment expenses 91,178 243,447 — 334,625 Acquisition costs and other underwriting expenses 57,487 133,291 — 190,778 Corporate and other operating expenses 12,234 17,532 — 29,766 Interest expense 7,108 43,237 (30,651 ) 19,694 Income (loss) before income taxes $ 16,639 $ (92,564 ) $ — $ (75,925 ) Year Ended December 31, 2017 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 212,386 $ 462,453 $ (158,505 ) $ 516,334 Net written premiums $ 212,432 $ 237,748 $ — $ 450,180 Net earned premiums $ 201,165 $ 236,869 $ — $ 438,034 Net investment income 56,890 24,609 (42,176 ) 39,323 Net realized investment gains (losses) (641 ) 2,217 — 1,576 Other income 216 6,366 — 6,582 Total revenues 257,630 270,061 (42,176 ) 485,515 Losses and Expenses: Net losses and loss adjustment expenses 94,903 174,309 — 269,212 Acquisition costs and other underwriting expenses 89,153 94,580 — 183,733 Corporate and other operating expenses 17,399 8,315 — 25,714 Interest expense 16,740 42,342 (42,176 ) 16,906 Income (loss) before income taxes $ 39,435 $ (49,485 ) $ — $ (10,050 ) |
Components of Income Tax Expense (Benefit) | The following table summarizes the components of income tax expense (benefit): Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Current income tax expense (benefit): Foreign $ (41 ) $ 325 $ 392 U.S. Federal — — 127 Total current income tax expense (benefit) (41 ) 325 519 Deferred income tax expense (benefit): U.S. tax rate change — — 17,524 U.S. Federal 11,783 (19,554 ) (18,542 ) Total deferred income tax expense (benefit) 11,783 (19,554 ) (1,018 ) Total income tax expense (benefit) $ 11,742 $ (19,229 ) $ (499 ) |
Differences in Tax Provision for Financial Statement Purposes and Expected Tax Provision at Weighted Average Tax Rate | The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate: Years Ended December 31, 2019 2018 2017 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average $ 8,928 10.9 % $ (19,112 ) (25.2 %) $ (16,928 ) (168.4 %) Adjustments: Tax exempt interest (3 ) (0.0 ) (6 ) — (213 ) (2.1 ) Dividend exclusion (284 ) (0.3 ) (279 ) (0.4 ) (571 ) (5.7 ) Tax rate change — — — — 17,524 174.4 Non-deductible interest 2,714 3.3 356 0.5 — — Other 387 0.5 (188 ) (0.2 ) (311 ) (3.2 ) Effective income tax expense (benefit) $ 11,742 14.4 % $ (19,229 ) (25.3 %) $ (499 ) (5.0 %) |
Tax Effects of Temporary Differences That Give Rise to Significant Portions of Net Deferred Tax Assets | The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at December 31, 2019 and 2018 are presented below: (Dollars in thousands) 2019 2018 Deferred tax assets: Discounted unpaid losses and loss adjustment expenses $ 3,681 $ 3,482 Unearned premiums 10,234 9,206 Section 163(j) carryforward 9,023 11,075 Net operating loss carryforward 21,871 29,480 Partnership K1 basis differences 1,703 113 Loss on derivative instruments 2,158 853 Investment impairments 1 816 Stock options 1,352 1,375 Stat-to-GAAP reinsurance reserve 874 895 Unrealized loss on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income (loss) — 2,778 Unrealized loss on equity securities — 1,409 Intercompany transfers — 210 Other 1,840 1,860 Total deferred tax assets 52,737 63,552 Deferred tax liabilities: Intangible assets 3,112 3,150 Unrealized gain on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income (loss) 2,950 — Unrealized gain on equity securities 3,438 — Investment basis differences — 212 Deferred acquisition costs 11,608 10,525 Depreciation and amortization 436 528 Other 116 548 Total deferred tax liabilities 21,660 14,963 Total net deferred tax assets $ 31,077 $ 48,589 |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses | Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Balance at beginning of period $ 680,031 $ 634,664 $ 651,042 Less: Ceded reinsurance receivables 109,342 97,243 130,439 Net balance at beginning of period 570,689 537,421 520,603 Purchased reserves, gross — — 19,333 Less: Purchased reserves ceded — — (29 ) Purchase reserves, net of third party reinsurance — — 19,362 Incurred losses and loss adjustment expenses related to: Current year 308,211 363,423 323,112 Prior years (32,809 ) (28,798 ) (53,900 ) Total incurred losses and loss adjustment expenses 275,402 334,625 269,212 Paid losses and loss adjustment expenses related to: Current year 146,128 173,545 156,325 Prior years 146,055 127,812 115,431 Total paid losses and loss adjustment expenses 292,183 301,357 271,756 Net balance at end of period 553,908 570,689 537,421 Plus: Ceded reinsurance receivables 76,273 109,342 97,243 Balance at end of period $ 630,181 $ 680,031 $ 634,664 |
Gross Reserves for Asbestos and Environmental Losses | The following table shows the Company’s gross reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Gross reserve for A&E losses and loss adjustment expenses – beginning of period $ 50,445 $ 51,873 $ 51,919 Plus: Change in incurred losses and loss adjustment expenses (2 ) (1 ) 1,470 Less: Payments 1,618 1,427 1,516 Gross reserves for A&E losses and loss adjustment expenses – end of period $ 48,825 $ 50,445 $ 51,873 |
Net Reserves for Asbestos and Environmental Losses | The following table shows the Company’s net reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Net reserve for A&E losses and loss adjustment expenses – beginning of period $ 29,524 $ 30,124 $ 29,890 Plus: Change in incurred losses and loss adjustment expenses (1 ) — 967 Less: Payments 490 600 733 Net reserves for A&E losses and loss adjustment expenses – end of period $ 29,033 $ 29,524 $ 30,124 |
Incurred Claims Development | Commercial Specialty – Property (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2017 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) 2017 $ 44,785 $ 43,805 $ 45,627 $ 1,468 2,960 2018 60,555 62,219 1,853 2,688 2019 54,853 8,966 2,669 Total $ 162,699 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Commercial Specialty – Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 $ 79,188 $ 101,830 $ 102,252 $ 101,113 $ 94,484 $ 91,368 $ 84,681 $ 82,824 $ 80,012 $ 79,022 $ 6,152 3,528 2011 115,441 117,602 117,288 115,193 108,720 96,361 84,269 87,045 83,825 4,144 3,887 2012 61,340 65,911 65,637 63,359 55,137 52,504 50,022 47,966 6,686 2,411 2013 63,807 68,089 67,702 66,301 64,877 61,487 58,756 4,505 2,548 2014 61,325 60,227 58,042 56,837 56,129 53,955 8,413 2,345 2015 57,262 56,620 57,775 58,392 59,568 10,462 2,101 2016 54,130 53,776 53,584 51,893 9,740 1,927 2017 54,338 54,572 53,385 16,667 1,795 2018 57,879 57,457 27,742 2,062 2019 68,952 51,764 1,747 Total $ 614,779 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Specialty Property – Property (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) 2018 $ 122,164 $ 112,947 $ 3,917 15,093 2019 79,798 7,553 9,695 Total $ 192,745 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Specialty Property – Casualty (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2015 2016 2017 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 6,875 $ 8,455 $ 11,230 $ 11,656 $ 11,412 $ 1,155 856 2016 8,249 8,068 7,613 6,713 1,467 854 2017 7,213 6,966 7,515 1,650 503 2018 5,242 5,028 3,194 330 2019 3,986 3,158 234 Total $ 34,654 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Farm, Ranch, & Stable – Property (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) 2018 $ 34,811 $ 32,376 $ 1,704 2,760 2019 37,120 2,332 2,890 Total $ 69,496 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Farm, Ranch, & Stable – Casualty (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2015 2016 2017 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 12,055 $ 12,052 $ 10,621 $ 10,664 $ 10,383 $ 1,525 475 2016 13,226 13,005 11,977 10,507 2,077 545 2017 12,786 12,171 10,600 4,562 488 2018 9,934 10,559 5,419 529 2019 9,781 6,957 452 Total $ 51,830 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Reinsurance Lines – Property (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2013 2014 2015 2016 2017 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2013 $ 15,153 $ 9,948 $ 8,197 $ 6,698 $ 6,345 $ 6,471 $ 6,130 $ 332 — 2014 21,787 18,861 14,139 13,590 14,301 13,554 642 — 2015 19,877 16,738 12,526 9,945 9,050 1,005 — 2016 23,646 22,485 12,497 13,021 2,255 — 2017 43,782 50,032 51,711 10,371 — 2018 59,022 66,314 19,511 — 2019 32,442 27,907 — Total $ 192,222 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Reinsurance Lines – Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2019 Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 $ 41,831 $ 53,279 $ 57,916 $ 62,628 $ 61,062 $ 61,792 $ 60,701 $ 60,573 $ 60,151 $ 59,426 $ 1,009 — 2011 45,726 48,846 44,692 47,980 46,510 43,657 42,968 42,235 41,826 762 — 2012 15,865 15,624 17,123 17,579 17,360 17,348 16,982 16,449 473 — 2013 1,224 1,262 1,172 1,013 974 974 112 14 — 2014 1,988 2,095 2,060 1,957 1,957 593 590 — 2015 2,908 2,911 2,780 2,780 2,180 2,179 — 2016 3,627 3,627 3,627 3,627 3,627 — 2017 4,358 4,358 4,358 4,356 — 2018 5,573 5,573 5,573 — 2019 13,686 13,575 — Total $ 147,830 (1) Incurred-but-not-reported liabilities plus expected development on reported claims |
Cumulative Paid Claims Development | Commercial Specialty – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2017 2018 2019 (unaudited) (unaudited) 2017 $ 28,541 $ 37,712 $ 42,699 2018 36,161 54,400 2019 34,921 Total 132,020 All outstanding liabilities before 2017, net of reinsurance 2,972 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 33,651 Commercial Specialty – Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 $ 5,503 $ 19,926 $ 34,659 $ 50,520 $ 58,913 $ 65,377 $ 67,277 $ 69,615 $ 70,300 $ 71,951 2011 5,451 21,325 41,282 56,562 64,722 72,087 74,839 77,675 78,595 2012 3,500 11,884 22,456 31,231 36,360 39,596 39,899 40,595 2013 6,400 17,881 29,510 38,438 46,272 50,964 52,265 2014 3,968 15,690 26,268 33,697 39,361 42,517 2015 3,336 14,584 25,147 35,816 42,543 2016 4,135 14,027 21,966 34,872 2017 4,914 12,711 22,988 2018 4,297 13,827 2019 5,174 Total 405,327 All outstanding liabilities before 2010, net of reinsurance 65,083 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 274,535 Specialty Property – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2018 2019 (unaudited) 2018 $ 99,741 $ 106,755 2019 66,786 Total 173,541 All outstanding liabilities before 2018, net of reinsurance 5,146 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 24,350 Specialty Property – Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 1,301 $ 4,979 $ 6,698 $ 9,129 $ 10,050 2016 1,165 2,654 3,889 4,856 2017 979 2,658 4,502 2018 248 1,339 2019 397 Total 21,144 All outstanding liabilities before 2015, net of reinsurance 1,309 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 14,819 Farm, Ranch, & Stable – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2018 2019 (unaudited) 2018 $ 27,427 $ 30,475 2019 31,461 Total 61,936 All outstanding liabilities before 2018, net of reinsurance 1,289 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 8,849 Farm, Ranch, & Stable – Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 2,138 $ 3,778 $ 6,228 $ 6,986 $ 8,481 2016 2,342 4,231 5,954 7,069 2017 1,153 2,145 4,242 2018 1,092 3,225 2019 1,626 Total 24,643 All outstanding liabilities before 2015, net of reinsurance 1,546 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 28,733 Reinsurance Lines – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2013 2014 2015 2016 2017 2018 2019 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2013 $ 723 $ 4,008 $ 5,835 $ 5,111 $ 5,255 $ 5,735 $ 5,593 2014 2,243 9,035 10,460 11,182 12,339 12,480 2015 742 5,163 6,768 7,139 7,411 2016 2,071 5,704 7,161 8,514 2017 2,152 20,609 28,079 2018 21 21,608 2019 139 Total 83,824 All outstanding liabilities before 2013, net of reinsurance 859 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 109,257 Reinsurance Lines – Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 $ 10,185 $ 21,447 $ 30,754 $ 36,090 $ 39,123 $ 55,315 $ 55,848 $ 56,960 $ 57,042 $ 58,088 2011 7,968 20,072 28,495 36,020 38,907 39,815 40,079 40,303 40,476 2012 5,312 9,435 11,658 15,534 15,696 15,790 15,625 15,691 2013 123 50 62 65 65 65 71 2014 88 47 50 1 1 1 2015 107 128 1 1 1 2016 — — — — 2017 — 2 2 2018 — — 2019 27 Total 114,357 All outstanding liabilities before 2010, net of reinsurance 1,232 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 34,705 |
Supplementary Information about Average Historical Claims | The following is required supplementary information about average historical claims duration as of December 31, 2019: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 Commercial Specialty - Property 61.4 % 24.7 % 10.9 % The following is required supplementary information about average historical claims duration as of December 31, 2019: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 8 9 10 Commercial Specialty - Casualty 7.7 % 18.3 % 19.5 % 18.3 % 11.0 % 7.5 % 2.1 % 2.6 % 1.0 % 2.1 % The following is required supplementary information about average historical claims duration as of December 31, 2019. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 Specialty Property - Property 86.0 % 6.2 % The following is required supplementary information about average historical claims duration as of December 31, 2019: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 Specialty Property - Casualty 11.3 % 24.6 % 19.3 % 17.9 % 8.1 % The following is required supplementary information about average historical claims duration as of December 31, 2019. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 Farm, Ranch, & Stable - Property 84.7 % 9.4 % The following is required supplementary information about average historical claims duration as of December 31, 2019: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 Farm, Ranch, & Stable - Casualty 16.1 % 15.8 % 19.9 % 9.0 % 14.4 % The following is required supplementary information about average historical claims duration as of December 31, 2019: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 Reinsurance Lines - Property 8.2% 41.5% 16.7% 2.0% 4.6% 4.4% -2.3% The following is required supplementary information about average historical claims duration as of December 31, 2019: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) (1) Year 1 2 3 4 5 6 7 8 9 10 Reinsurance Lines - Casualty 19.8% 0.2% 6.8% 6.3% 2.2% 6.0% 1.6% 0.9% 0.3% 1.8% (1) May not be indicative of future average annual percentage payout of incurred claims due to a change in mix of business |
Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and Loss Adjustment Expenses in Consolidated Balance Sheets | The reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and loss adjustment expenses in the consolidated balance sheets as of December 31, 2019 is as follows: Net outstanding liabilities Commercial Specialty – Property $ 33,651 Commercial Specialty – Casualty 274,535 Specialty Property – Property 24,350 Specialty Property – Casualty 14,819 Farm, Ranch, & Stable – Property 8,849 Farm, Ranch, & Stable – Casualty 28,733 Reinsurance Lines – Property 109,257 Reinsurance Lines – Casualty 34,705 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance 528,899 Reinsurance recoverable on unpaid claims Commercial Specialty – Property 12,472 Commercial Specialty – Casualty 47,130 Specialty Property – Property 6,219 Specialty Property – Casualty 1,450 Farm, Ranch, & Stable – Property 563 Farm, Ranch, & Stable – Casualty 6,417 Reinsurance Lines – Property — Reinsurance Lines – Casualty — Total reinsurance recoverable on unpaid claims 74,251 Other outstanding liabilities Commercial Specialty Ceded Allowance 8,992 Unallocated claims adjustment expenses 15,707 Purchase accounting adjustment (400 ) Loss Clearing (1,939 ) Specialty Property Fronted business ceded to Assurant 2,421 Unallocated claims adjustment expenses 1,074 Loss Clearing 1 Farm, Ranch, & Stable Ceded Allowance — Unallocated claims adjustment expenses 1,040 Loss Clearing — Reinsurance Lines Unallocated claims adjustment expenses 365 Other (230 ) Total other outstanding liabilities 27,031 Total gross liability for unpaid losses and loss adjustment expenses $ 630,181 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Outstanding Debt | The Company’s outstanding debt consisted of the following at December 31, 2019 and 2018: December 31, (Dollars in thousands) 2019 2018 Margin Borrowing Facility $ 73,629 $ 65,818 7.75% Subordinated Notes due 2045 96,864 96,742 7.875% Subordinated Notes due 2047 126,147 126,005 Total $ 296,640 $ 288,565 |
Amounts Recorded for the Subordinated Notes | The following table represents the amounts recorded for the subordinated notes as of December 31, 2019 and 2018: December 31, 2019 (Dollars in thousands) Outstanding Principal Unamortized Debt Issuance Costs Net Carrying Amount 7.75% Subordinated Notes due 2045 $ 100,000 $ (3,136 ) $ 96,864 7.875% Subordinated Notes due 2047 130,000 (3,853 ) 126,147 $ 230,000 $ (6,989 ) $ 223,011 December 31, 2018 (Dollars in thousands) Outstanding Principal Unamortized Debt Issuance Costs Net Carrying Amount 7.75% Subordinated Notes due 2045 $ 100,000 $ (3,258 ) $ 96,742 7.875% Subordinated Notes due 2047 130,000 (3,995 ) 126,005 $ 230,000 $ (7,253 ) $ 222,747 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expenses for the year ended December 31, 2019 were as follows: (Dollars in thousands) Operating lease expenses $ 3,293 Short-term lease expenses 7 Total lease expenses $ 3,300 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: (Dollars in thousands) Year Ended December 31, 2019 Cash paid for amounts included in the measurement of liabilities: Operating leases $ 2,530 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 13,858 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheets. (Dollars in thousands) Classification on the consolidated balance sheets December 31, 2019 Assets: Operating lease assets Other assets $ 22,761 Liabilities: Operating lease liabilities Other liabilities $ 23,539 Weighted-average remaining lease term Operating leases 10.2 years Weighted-average discount rate Operating leases (1) 2.7 % (1) Represents the Company’s incremental borrowing rate |
Future Minimum Lease Payments Under Non-cancelable Operating Leases | At December 31, 2019, future minimum lease payments under non-cancelable operating leases were as follows: (Dollars in thousands) 2020 $ 1,931 2021 2,779 2022 2,659 2023 2,702 2024 2,746 Thereafter 14,142 Total future minimum lease payments 26,959 Less: amount representing interest 3,420 Present value of minimum lease payments $ 23,539 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Dividends Declared | Dividend payments of $0.25 per ordinary share per quarter were declared during the year ended December 31, 2019 as follows: Approval Date Record Date Payment Date Total Dividends Paid (Dollars in thousands) February 10, 2019 March 22, 2019 March 29, 2019 $ 3,521 June 2, 2019 June 21, 2019 June 28, 2019 3,525 September 15, 2019 September 26, 2019 October 2, 2019 3,528 December 8, 2019 December 24, 2019 December 31, 2019 3,532 Various (1) Various Various 268 Total $ 14,374 (1) Represents dividends declared on unvested shares, net of forfeitures. Dividend payments of $0.25 per ordinary share per quarter were declared during the year ended December 31, 2018 as follows: Approval Date Record Date Payment Date Total Dividends Paid (Dollars in thousands) March 4, 2018 March 21, 2018 March 29, 2018 $ 3,499 June 3, 2018 June 22, 2018 June 29, 2018 3,502 September 16, 2018 September 27, 2018 October 1, 2018 3,504 December 2, 2018 December 24, 2018 December 31, 2018 3,506 Various (1) Various Various 197 Total $ 14,208 (1) Represents dividends declared on unvested shares, net of forfeitures. |
Information with Respect to A Ordinary Shares that were Surrendered, Repurchased or Redeemed | The following table provides information with respect to the A ordinary shares that were surrendered, repurchased, or redeemed in 2019: Period (1) Total Number of Shares Purchased or Redeemed Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plan or Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs A ordinary shares: January 1-31, 2019 7,945 (2) $ 36.23 — — February 1-28, 2019 19,083 (2) $ 34.59 — — Total 27,028 $ 35.07 — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. There were no B ordinary shares that were surrendered, repurchased, or redeemed in 2019. The following table provides information with respect to the A ordinary shares that were surrendered, repurchased, or redeemed in 2018: Period (1) Total Number of Shares Purchased or Redeemed Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plan or Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs A ordinary shares: January 1-31, 2018 26,639 (2) $ 42.02 — — March 1-31, 2018 18,594 (2) $ 37.27 — — Total 45,233 $ 40.07 — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Line Items] | |
Summary of Award Activity for Stock Options Granted and Weighted Average Exercise Price Per Share | Award activity for stock options granted under the Plan and the weighted average exercise price per share are summarized as follows: Time-Based Options Performance- Based Options Total Options Weighted Average Exercise Price Per Share Options outstanding at January 1, 2017 300,000 300,000 600,000 $ 25.13 Options issued — — — — Options forfeited — — — — Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2017 300,000 300,000 (1) 600,000 25.13 Options issued 300,000 — 300,000 50.00 Options forfeited — (100,000 ) (100,000 ) 38.43 Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2018 600,000 200,000 800,000 35.06 Options issued — — — — Options forfeited — — — — Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2019 600,000 200,000 800,000 $ 35.06 Options exercisable at December 31, 2019 500,000 100,000 600,000 $ 32.01 (1) In 2014, 300,000 options were granted. On March 6, 2018, the existing vesting provisions of these options were eliminated and replaced with new vesting provisions related to return on equity targets for 2018, 2019, and 2020 (“Bonus Years”). 100,000 options were related to the 2018 Bonus Year. Return on equity targets for the 2018 bonus year were not met and therefore, these 100,000 options have been forfeited. 200,000 options remain outstanding. 100,000 options, which were related to return on equity targets for the 2019 bonus year, vested on December 31, 2019. These options are subject to remeasurement of 2019 bonus year results after the third full calendar year following the bonus year. 100,000 options are related to return on equity targets for the 2020 bonus year. These options are subject to remeasurement of 2020 bonus year results after the third full calendar year following the bonus year. |
Option Intrinsic values | Option intrinsic values, which are the differences between the fair value of $29.63 at December 31, 2019 and the strike price of the option, are as follows: Number of Shares Weighted Average Strike Price Intrinsic Value Outstanding 800,000 35.06 $3.5 Million Exercisable 600,000 32.01 $3.5 Million Exercised (1) — — — (1) The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. |
Options Exercisable | The options exercisable at December 31, 2019 include the following: Option Price Number of options exercisable $ 17.87 300,000 $ 38.43 (1) 100,000 $ 50.00 200,000 Options exercisable at December 31, 2019 600,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. |
Significant Assumptions Used to Estimate Fair Value of Stock Options Granted Using Black Scholes Option Pricing Model | There were no options granted under the Plan in 2019 or 2017. The weighted average fair value of options granted under the Plan was $3.79 in 2018 using a Black-Scholes option-pricing model and the following weighted average assumptions. 2018 Dividend yield 2.0% Expected volatility 22.47% Risk-free interest rate 2.0% Expected option life 3.3 years |
Summary of Range of Exercise Prices of Options Outstanding | The following tables summarize the range of exercise prices of options outstanding at December 31, 2019, 2018, and 2017: Ranges of Exercise Prices Outstanding at December 31, 2019 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $ 17.87 1.7 years $30.00 — $38.43 200,000 (1) $ 38.43 5.0 years $50.00 — $59.99 300,000 $ 50.00 8.0 years Total 800,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. Ranges of Exercise Prices Outstanding at December 31, 2018 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $ 17.87 2.7 years $30.00 — $38.43 200,000 (1) $ 38.43 6.0 years $50.00 — $59.99 300,000 $ 50.00 9.0 years Total 800,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. Ranges of Exercise Prices Outstanding at December 31, 2017 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $ 17.87 3.7 years $30.00 — $37.70 300,000 (1) $ 32.38 6.1 years Total 600,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. |
Summary of Restricted Stock Awards Since Inception | The following table summarizes the restricted stock grants since the 2003 inception of the original share incentive plan: Restricted Stock Awards Year Employees Directors Total Inception through 2016 1,066,615 513,394 1,580,009 2017 22,503 27,121 49,624 2018 38,778 31,646 70,424 2019 43,680 66,919 110,599 1,171,576 639,080 1,810,656 |
Summary of Non-Vested Restricted Shares/Units Activity | The following table summarizes the non-vested restricted shares activity for the years ended December 31, 2019, 2018, and 2017: Number of Shares Weighted Average Price Per Share Non-vested Restricted Shares at January 1, 2017 299,598 $ 28.02 Shares issued 49,624 39.42 Shares vested (116,111 ) 29.75 Shares forfeited (20,299 ) 28.63 Non-vested Restricted Shares at December 31, 2017 212,812 29.67 Shares issued 70,424 38.85 Shares vested (166,117 ) 30.88 Shares forfeited (3,255 ) 28.91 Non-vested Restricted Shares at December 31, 2018 113,864 33.61 Shares issued 110,599 30.93 Shares vested (150,395 ) 29.86 Shares forfeited (11,828 ) 38.42 Non-vested Restricted Shares at December 31, 2019 62,240 $ 37.00 |
Restricted Stock Units | |
Disclosure Of Compensation Related Costs Sharebased Payments [Line Items] | |
Summary of Restricted Stock Awards Since Inception | The following table summarizes the restricted stock unit grants since the 2003 inception of the original share incentive plan: Restricted Stock Unit Awards Year Employees Directors Total Inception through 2018 — — — 2019 175,498 — 175,498 175,498 — 175,498 |
Summary of Non-Vested Restricted Shares/Units Activity | The following table summarizes the non-vested restricted stock units activity for the years ended December 31, 2019, 2018, and 2017: Number of Restricted Stock Units Weighted Average Price Per Restricted Stock Unit Non-vested Restricted Stock Units at December 31, 2017 and 2018 — $ — Restricted Stock Units issued 175,498 30.18 Restricted Stock Units vested — — Restricted Stock Units forfeited — — Non-vested Restricted Stock Units at December 31, 2019 175,498 $ 30.18 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Years Ended December 31, (Dollars in thousands, except share and per share data) 2019 2018 2017 Net income (loss) $ 70,015 $ (56,696 ) $ (9,551 ) Basic earnings per share: Weighted average shares outstanding - basic 14,191,756 14,088,883 17,308,663 Net income (loss) per share $ 4.93 $ (4.02 ) $ (0.55 ) Diluted earnings per share: Weighted average shares outstanding – diluted (1) 14,334,706 14,088,883 17,308,663 Net income (loss) per share $ 4.88 $ (4.02 ) $ (0.55 ) (1) For the years ended December 31, 2018 and 2017, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss for the period. |
Reconciliation of Weighted Average Shares for Basic and Diluted Earnings Per Share | A reconciliation of weighted average shares for basic earnings per share to weighted average shares for diluted earnings per share is as follows: Years Ended December 31, 2019 2018 2017 Weighted average shares for basic earnings per share 14,191,756 14,088,883 17,308,663 Non-vested restricted stock 20,492 — — Non-vested restricted stock units 3,392 — — Options 119,066 — — Weighted average shares for diluted earnings per share 14,334,706 14,088,883 17,308,663 |
Statutory Financial Informati_2
Statutory Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Information for United States Insurance Companies & Global Indemnity Reinsurance, Net of Intercompany Eliminations, as Determined in Accordance With SAP and Bermuda | The following is selected information for the Company’s U.S. insurance companies, net of intercompany eliminations, where applicable, as determined in accordance with SAP: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Statutory capital and surplus, as of end of period $ 263,793 $ 225,645 $ 274,586 Statutory net income (loss) 39,971 (52,036 ) (19,019 ) |
Global Indemnity Reinsurance | |
Information for United States Insurance Companies & Global Indemnity Reinsurance, Net of Intercompany Eliminations, as Determined in Accordance With SAP and Bermuda | The following is selected information for Global Indemnity Reinsurance, net of intercompany eliminations, where applicable, as determined in accordance with the Bermuda Insurance Act 1978: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Statutory capital and surplus, as of end of period $ 885,763 $ 835,620 $ 908,433 Statutory net income 34,086 (3,972 ) 29,647 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Business Segment Information | The following are tabulations of business segment information for the years ended December 31, 2019, 2018, and 2017. Corporate information is included to reconcile segment data to the consolidated financial statements. 2019: (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 297,332 $ 163,503 (3) $ 87,745 $ 88,281 $ 636,861 Net written premiums $ 258,719 $ 140,670 $ 74,416 $ 88,284 $ 562,089 Net earned premiums $ 237,758 $ 140,232 $ 71,312 $ 75,960 $ 525,262 Other income (loss) — 1,820 132 (136 ) 1,816 Total revenues 237,758 142,052 71,444 75,824 527,078 Losses and Expenses: Net losses and loss adjustment expenses 108,911 75,426 42,700 48,365 275,402 Acquisition costs and other underwriting expenses 96,475 58,768 29,551 23,609 208,403 Income (loss) from segments $ 32,372 $ 7,858 $ (807 ) $ 3,850 43,273 Unallocated Items: Net investment income 42,052 Net realized investment gains 35,342 Corporate and other operating expenses (18,888 ) Interest expense (20,022 ) Income before income taxes 81,757 Income tax expense (11,742 ) Net income $ 70,015 Segment assets $ 713,010 $ 226,388 $ 136,891 $ 325,451 $ 1,401,740 Corporate assets 674,145 Total assets $ 2,075,885 (1) Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018. (2) External business only, excluding business assumed from affiliates. ( 3 ) Includes ($273) of business written by American Reliable that was ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement 2018: (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 249,948 $ 170,168 (6) $ 79,738 $ 48,043 $ 547,897 Net written premiums $ 226,827 $ 127,470 $ 70,217 $ 48,033 $ 472,547 Net earned premiums $ 218,357 $ 128,768 $ 69,248 $ 51,402 $ 467,775 Other income (loss) — 1,782 156 (210 ) 1,728 Total revenues 218,357 130,550 69,404 51,192 469,503 Losses and Expenses: Net losses and loss adjustment expenses 114,476 122,709 41,180 56,260 334,625 Acquisition costs and other underwriting expenses 87,371 (3) 55,760 (4) 29,801 (5) 17,846 190,778 Income (loss) from segments $ 16,510 $ (47,919 ) $ (1,577 ) $ (22,914 ) $ (55,900 ) Unallocated Items: Net investment income 46,342 Net realized investment losses (16,907 ) Corporate and other operating expenses (29,766 ) Interest expense (19,694 ) Loss before income taxes (75,925 ) Income tax benefit 19,229 Net loss $ (56,696 ) Segment assets $ 712,632 $ 270,083 $ 134,056 $ 316,922 $ 1,433,693 Corporate assets 526,573 Total assets $ 1,960,266 (1) Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018. (2) External business only, excluding business assumed from affiliates. (3) Includes federal excise tax of $386 relating to cessions from Commercial Specialty to Reinsurance Operations. (4) Includes federal excise tax of $313 relating to cessions from (5) Includes federal excise tax of $145 relating to cessions from Farm, Ranch, & Stable to Reinsurance Operations. ( 6 ) Includes ($2,062) of business written by American Reliable that was ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. 2017: (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 212,670 $ 173,780 (6) $ 75,997 $ 53,887 $ 516,334 Net written premiums $ 186,448 $ 144,271 $ 65,528 $ 53,933 $ 450,180 Net earned premiums $ 178,798 $ 149,786 $ 66,197 $ 43,253 $ 438,034 Other income 78 6,013 275 216 6,582 Total revenues 178,876 155,799 66,472 43,469 444,616 Losses and Expenses: Net losses and loss adjustment expenses 62,834 112,055 53,743 40,580 269,212 Acquisition costs and other underwriting expenses 75,990 (3) 63,477 (4) 29,636 (5) 14,630 183,733 Income (loss) from segments $ 40,052 $ (19,733 ) $ (16,907 ) $ (11,741 ) $ (8,329 ) Unallocated Items: Net investment income 39,323 Net realized investment gains 1,576 Corporate and other operating expenses (25,714 ) Interest expense (16,906 ) Loss before income taxes (10,050 ) Income tax benefit 499 Net loss $ (9,551 ) Segment assets $ 688,250 $ 249,596 $ 140,785 $ 281,648 $ 1,360,279 Corporate assets 641,390 Total assets $ 2,001,669 (1) Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018. (2) External business only, excluding business assumed from affiliates. (3) Includes federal excise tax of $714 relating to cessions from Commercial Specialty to Reinsurance Operations. (4) Includes federal excise tax of $597 relating to cessions from Specialty Property to Reinsurance Operations. (5) Includes federal excise tax of 265 relating to cessions from Farm, Ranch, & Stable to Reinsurance Operations. ( 6 ) Includes ($1,338) of business written by American Reliable that was ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets at December 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated ASSETS Total investments $ 44,468 $ 257,317 $ 1,261,757 $ — $ 1,563,542 Cash and cash equivalents 977 2,663 40,631 — 44,271 Investments in subsidiaries 1,218,491 355,777 434,278 (2,008,546 ) — Due from subsidiaries and affiliates (3,612 ) (3,965 ) 7,577 — — Notes receivable – affiliate — 80,049 445,498 (525,547 ) — Interest receivable – affiliate — 5,014 17,258 (22,272 ) — Premiums receivable, net — — 118,035 — 118,035 Reinsurance receivables, net — — 83,938 — 83,938 Funds held by ceding insurers — — 48,580 — 48,580 Federal income taxes receivable — 14,197 (3,208 ) — 10,989 Deferred federal income taxes — 31,833 (756 ) — 31,077 Deferred acquisition costs — — 70,677 — 70,677 Intangible assets — — 21,491 — 21,491 Goodwill — — 6,521 — 6,521 Prepaid reinsurance premiums — — 16,716 — 16,716 Other assets 9,394 12,622 45,021 (6,989 ) 60,048 Total assets $ 1,269,718 $ 755,507 $ 2,614,014 $ (2,563,354 ) $ 2,075,885 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Unpaid losses and loss adjustment expenses $ — $ — $ 630,181 $ — $ 630,181 Unearned premiums — — 314,861 — 314,861 Ceded balances payable — — 20,404 — 20,404 Payable for securities purchased — — 850 — 850 Contingent commissions — — 11,928 — 11,928 Debt — 303,629 — (6,989 ) 296,640 Notes payable – affiliates 520,498 — 5,049 (525,547 ) — Accrued interest payable – affiliates 20,343 — 1,929 (22,272 ) — Other liabilities 2,068 17,600 54,544 — 74,212 Total liabilities 542,909 321,229 1,039,746 (554,808 ) 1,349,076 Shareholders’ equity Total shareholders’ equity 726,809 434,278 1,574,268 (2,008,546 ) 726,809 Total liabilities and shareholders’ equity $ 1,269,718 $ 755,507 $ 2,614,014 $ (2,563,354 ) $ 2,075,885 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Balance Sheets at December 31, 2018 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated ASSETS Total investments $ 55,377 $ 233,479 $ 1,121,799 $ — $ 1,410,655 Cash and cash equivalents 2,221 26,039 71,237 — 99,497 Investments in subsidiaries 1,105,032 296,357 (19,922 ) (1,381,467 ) — Due from subsidiaries and affiliates 584 (2,133 ) 1,549 — — Notes receivable – affiliate — 80,049 847,808 (927,857 ) — Interest receivable – affiliate — 3,869 17,425 (21,294 ) — Premiums receivable, net — — 87,679 — 87,679 Reinsurance receivables, net — — 114,418 — 114,418 Funds held by ceding insurers — — 49,206 — 49,206 Federal income taxes receivable — 4,631 6,235 — 10,866 Deferred federal income taxes — 44,481 4,108 — 48,589 Deferred acquisition costs — — 61,676 — 61,676 Intangible assets — — 22,020 — 22,020 Goodwill — — 6,521 — 6,521 Prepaid reinsurance premiums — — 20,594 — 20,594 Receivable for securities sold — — 15 — 15 Other assets 8,461 5,085 22,237 (7,253 ) 28,530 Total assets $ 1,171,675 $ 691,857 $ 2,434,605 $ (2,337,871 ) $ 1,960,266 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Unpaid losses and loss adjustment expenses $ — $ — $ 680,031 $ — $ 680,031 Unearned premiums — — 281,912 — 281,912 Ceded balances payable — — 14,994 — 14,994 Contingent commissions — — 10,636 — 10,636 Debt — 295,818 — (7,253 ) 288,565 Notes payable – affiliates 520,498 402,310 5,049 (927,857 ) — Accrued interest payable – affiliates 19,499 — 1,795 (21,294 ) — Other liabilities 2,619 13,651 38,799 — 55,069 Total liabilities 542,616 711,779 1,033,216 (956,404 ) 1,331,207 Shareholders’ equity Total shareholders’ equity 629,059 (19,922 ) 1,401,389 (1,381,467 ) 629,059 Total liabilities and shareholders’ equity $ 1,171,675 $ 691,857 $ 2,434,605 $ (2,337,871 ) $ 1,960,266 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments |
Schedule of Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations for the Year Ended December 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Revenues: Net earned premiums $ — $ — $ 525,262 $ — $ 525,262 Net investment income 2,295 6,563 34,339 (1,145 ) 42,052 Net realized investment gains 574 28,596 6,172 — 35,342 Other income — 30 1,786 — 1,816 Total revenues 2,869 35,189 567,559 (1,145 ) 604,472 Losses and Expenses: Net losses and loss adjustment expenses — — 275,402 — 275,402 Acquisition costs and other underwriting expenses — — 208,403 — 208,403 Corporate and other operating expenses 6,692 10,254 1,942 — 18,888 Interest expense 1,108 19,743 316 (1,145 ) 20,022 Income (loss) before equity in net income of subsidiaries and income taxes (4,931 ) 5,192 81,496 — 81,757 Equity in net income of subsidiaries 74,946 28,401 32,067 (135,414 ) — Income before income taxes 70,015 33,593 113,563 (135,414 ) 81,757 Income tax expense — 1,526 10,216 — 11,742 Net income $ 70,015 $ 32,067 $ 103,347 $ (135,414 ) $ 70,015 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Operations for the Year Ended December 31, 2018 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Revenues: Net earned premiums $ — $ — $ 467,775 $ — $ 467,775 Net investment income 658 9,208 73,317 (36,841 ) 46,342 Net realized investment losses (154 ) (15,284 ) (1,469 ) — (16,907 ) Other income — 20 1,708 — 1,728 Total revenues 504 (6,056 ) 541,331 (36,841 ) 498,938 Losses and Expenses: Net losses and loss adjustment expenses — — 334,625 — 334,625 Acquisition costs and other underwriting expenses — — 190,778 — 190,778 Corporate and other operating expenses 11,317 17,047 1,402 — 29,766 Interest expense 12,994 43,187 354 (36,841 ) 19,694 Income (loss) before equity in net loss of subsidiaries and income taxes (23,807 ) (66,290 ) 14,172 — (75,925 ) Equity in net loss of subsidiaries (32,889 ) (16,694 ) (73,009 ) 122,592 — Loss before income taxes (56,696 ) (82,984 ) (58,837 ) 122,592 (75,925 ) Income tax benefit — (9,975 ) (9,254 ) — (19,229 ) Net loss $ (56,696 ) $ (73,009 ) $ (49,583 ) $ 122,592 $ (56,696 ) (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Operations for the Year Ended December 31, 2017 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Revenues: Net earned premiums $ — $ — $ 438,034 $ — $ 438,034 Net investment income 361 8,943 74,264 (44,245 ) 39,323 Net realized investment gains (losses) (368 ) 877 1,067 — 1,576 Other income 6 4,170 2,406 — 6,582 Total revenues (1 ) 13,990 515,771 (44,245 ) 485,515 Losses and Expenses: Net losses and loss adjustment expenses — — 269,212 — 269,212 Acquisition costs and other underwriting expenses — — 183,733 — 183,733 Corporate and other operating expenses 16,807 (11,595 ) 20,502 — 25,714 Interest expense 18,349 42,332 332 (44,107 ) 16,906 Income (loss) before equity in net income (loss) of subsidiaries and income taxes (35,157 ) (16,747 ) 41,992 (138 ) (10,050 ) Equity in net income (loss) of subsidiaries 25,606 (19,018 ) (48,595 ) 42,007 — Loss before income taxes (9,551 ) (35,765 ) (6,603 ) 41,869 (10,050 ) Income tax expense (benefit) — 12,830 (13,329 ) — (499 ) Net income (loss) $ (9,551 ) $ (48,595 ) $ 6,726 $ 41,869 $ (9,551 ) (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments |
Schedule of Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income for the Year Ended December 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Net income $ 70,015 $ 32,067 $ 103,347 $ (135,414 ) $ 70,015 Other comprehensive income, net of tax: Unrealized holding gains 872 1,588 41,520 — 43,980 Equity in other comprehensive income of unconsolidated subsidiaries 38,520 19,734 21,547 (79,801 ) — Portion of other-than-temporary impairment losses recognized in other comprehensive income — — (5 ) — (5 ) Reclassification adjustment for (gains) losses included in net income (552 ) 225 (5,110 ) — (5,437 ) Unrealized foreign currency translation gains — — 302 — 302 Other comprehensive income, net of tax 38,840 21,547 58,254 (79,801 ) 38,840 Comprehensive income, net of tax $ 108,855 $ 53,614 $ 161,601 $ (215,215 ) $ 108,855 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Comprehensive Income for the Year Ended December 31, 2018 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Net loss $ (56,696 ) $ (73,009 ) $ (49,583 ) $ 122,592 $ (56,696 ) Other comprehensive loss, net of tax: Unrealized holding gains (499 ) (2,917 ) (17,332 ) — (20,748 ) Equity in other comprehensive loss of unconsolidated subsidiaries (19,841 ) (8,230 ) (10,120 ) 38,191 — Portion of other-than-temporary impairment losses recognized in other comprehensive losses — — (3 ) — (3 ) Reclassification adjustment for losses included in net loss 154 1,027 1,269 — 2,450 Unrealized foreign currency translation loss — — (1,885 ) — (1,885 ) Other comprehensive loss, net of tax (20,186 ) (10,120 ) (28,071 ) 38,191 (20,186 ) Comprehensive loss, net of tax $ (76,882 ) $ (83,129 ) $ (77,654 ) $ 160,783 $ (76,882 ) (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Comprehensive Income for the Year Ended December 31, 2017 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Net income (loss) $ (9,551 ) $ (48,595 ) $ 6,726 $ 41,869 $ (9,551 ) Other comprehensive income (loss), net of tax: Unrealized holding gains (losses) (216 ) 9,735 187 (29 ) 9,677 Equity in other comprehensive income (loss) of unconsolidated subsidiaries 9,449 (385 ) 8,955 (18,019 ) — Portion of other-than-temporary impairment losses recognized in other comprehensive income (losses) — — (3 ) — (3 ) Reclassification adjustment for (gains) losses included in net income 368 (619 ) (735 ) 138 (848 ) Unrealized foreign currency translation gains — 224 551 — 775 Other comprehensive income (loss), net of tax 9,601 8,955 8,955 (17,910 ) 9,601 Comprehensive income (loss), net of tax $ 50 $ (39,640 ) $ 15,681 $ 23,959 $ 50 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments |
Schedule of Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows for the Year Ended December 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Global Indemnity Limited Consolidated Cash flows from operating activities: Net cash provided by (used for) operating activities $ 2,632 $ (23,295 ) $ 53,039 $ 32,376 Cash flows from investing activities: Proceeds from sale of fixed maturities 48,393 101,584 827,344 977,321 Proceeds from sale of equity securities 10,900 249,991 — 260,891 Proceeds from maturity of fixed maturities — — 180,546 180,546 Proceeds from other invested assets 4,363 12,394 — 16,757 Amount paid in connection with derivatives — (7,654 ) — (7,654 ) Purchases of fixed maturities (10,548 ) (26,205 ) (1,092,814 ) (1,129,567 ) Purchases of equity securities (41,815 ) (311,711 ) (11,729 ) (365,255 ) Purchases of other invested assets — (13,283 ) — (13,283 ) Net cash provided by (used for) investing activities 11,293 5,116 (96,653 ) (80,244 ) Cash flows from financing activities: Net borrowings under margin borrowing facility — 7,811 — 7,811 Dividends paid to shareholders (14,222 ) — — (14,222 ) Capital contribution — (13,008 ) 13,008 — Purchase of A ordinary shares (947 ) — — (947 ) Net cash provided by (used for) financing activities (15,169 ) (5,197 ) 13,008 (7,358 ) Net change in cash and cash equivalents (1,244 ) (23,376 ) (30,606 ) (55,226 ) Cash and cash equivalents at beginning of period 2,221 26,039 71,237 99,497 Cash and cash equivalents at end of period $ 977 $ 2,663 $ 40,631 $ 44,271 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations Condensed Consolidating Statements of Cash Flows for the Year Ended December 31, 2018 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Global Indemnity Limited Consolidated Cash flows from operating activities: Net cash provided by (used for) operating activities $ (20,178 ) $ (35,207 ) $ 97,454 $ 42,069 Cash flows from investing activities: Proceeds from sale of fixed maturities 32,980 71,900 188,468 293,348 Proceeds from sale of equity securities — 35,639 — 35,639 Proceeds from maturity of fixed maturities 5,431 7,600 42,151 55,182 Proceeds from other invested assets 1,500 34,499 7,378 43,377 Amount received in connection with derivatives — 4,392 — 4,392 Purchases of fixed maturities (33,327 ) (40,858 ) (296,351 ) (370,536 ) Purchases of equity securities — (36,258 ) — (36,258 ) Purchases of other invested assets — (15,800 ) (509 ) (16,309 ) Acquisition of business — (3,515 ) — (3,515 ) Net cash provided by (used for) investing activities 6,584 57,599 (58,863 ) 5,320 Cash flows from financing activities: Net repayments under margin borrowing facility — (6,412 ) — (6,412 ) Proceeds / (issuance) of notes to affiliates 230,000 (227,690 ) (2,310 ) — Debt restructuring (230,000 ) 230,000 — — Dividends paid to shareholders (14,027 ) — — (14,027 ) Dividends from subsidiaries 20,620 — (20,620 ) — Purchase of A ordinary shares (1,867 ) — — (1,867 ) Net cash provided by (used for) financing activities 4,726 (4,102 ) (22,930 ) (22,306 ) Net change in cash and cash equivalents (8,868 ) 18,290 15,661 25,083 Cash and cash equivalents at beginning of period 11,089 7,749 55,576 74,414 Cash and cash equivalents at end of period $ 2,221 $ 26,039 $ 71,237 $ 99,497 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations Condensed Consolidating Statements of Cash Flows for the Year Ended December 31, 2017 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Global Indemnity Limited Consolidated Cash flows from operating activities: Net cash provided by (used for) operating activities $ (24,927 ) $ (37,165 ) $ 43,183 $ (18,909 ) Cash flows from investing activities: Proceeds from sale of fixed maturities 12,389 54,082 851,968 918,439 Proceeds from sale of equity securities — 32,218 — 32,218 Proceeds from maturity of fixed maturities 10,000 78,925 56,550 145,475 Proceeds from other invested assets — 4,139 8,160 12,299 Amount received in connection with derivatives — 1,464 — 1,464 Purchases of fixed maturities (32,044 ) (254,152 ) (792,003 ) (1,078,199 ) Purchases of equity securities — (36,647 ) — (36,647 ) Purchases of other invested assets — (22,500 ) (1,500 ) (24,000 ) Net cash provided by (used for) investing activities (9,655 ) (142,471 ) 123,175 (28,951 ) Cash flows from financing activities: Net borrowings under margin borrowing facility — 5,584 — 5,584 Redemption of ordinary shares (83,015 ) — — (83,015 ) Proceeds from issuance of subordinated notes 130,000 — — 130,000 Debt issuance cost (4,246 ) — — (4,246 ) Proceeds / (issuance) of notes to affiliates — 120,000 (120,000 ) — Dividends from subsidiaries 100,000 56,265 (156,265 ) — Capital contribution (96,000 ) — 96,000 — Purchase of A ordinary shares (1,159 ) — — (1,159 ) Net cash provided by (used for) financing activities 45,580 181,849 (180,265 ) 47,164 Net change in cash and cash equivalents 10,998 2,213 (13,907 ) (696 ) Cash and cash equivalents at beginning of period 91 5,536 69,483 75,110 Cash and cash equivalents at end of period $ 11,089 $ 7,749 $ 55,576 $ 74,414 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Net Federal Income Taxes and Cash Interest Paid | The Company paid the following net federal income taxes and interest for 2019, 2018, and 2017: Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Federal income taxes paid $ 251 $ 859 $ 133 Federal income taxes recovered 170 — 19 Interest paid 19,711 19,387 14,504 |
Summary of Quarterly Financia_2
Summary of Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Performance | An unaudited summary of the Company’s 2019 and 2018 quarterly performance is as follows: Year Ended December 31, 2019 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net earned premiums $ 122,089 $ 128,201 $ 133,312 $ 141,660 Net investment income 7,219 13,826 11,348 9,659 Net realized investment gains (losses) 10,390 3,590 (2,690 ) 24,052 Net losses and loss adjustment expenses 58,321 70,075 73,583 73,423 Acquisition costs and other underwriting expenses 49,743 50,534 53,366 54,760 Income before income taxes 23,894 15,849 6,404 35,610 Net income 19,600 14,663 6,721 29,031 Per share data - Diluted: Net income $ 1.37 $ 1.02 $ 0.47 $ 2.02 Year Ended December 31, 2018 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net earned premiums $ 108,002 $ 113,917 $ 120,528 $ 125,328 Net investment income 11,404 10,954 11,750 12,234 Net realized investment gains (losses) (316 ) 2,830 5,319 (24,740 ) Net losses and loss adjustment expenses 56,072 58,861 80,493 139,199 Acquisition costs and other underwriting expenses 45,003 47,513 48,680 49,582 Income (loss) before income taxes 4,448 5,793 436 (86,602 ) Net income (loss) 5,701 7,192 3,728 (73,317 ) Per share data - Diluted: Net income (loss) $ 0.40 $ 0.50 $ 0.26 $ (5.20 ) |
Principles of Consolidation a_3
Principles of Consolidation and Basis of Presentation - Additional Information (Detail) $ in Thousands | Jan. 01, 2018USD ($) | Mar. 31, 2019Segment | Dec. 31, 2019USD ($)SegmentProduct | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Organization And Basis Of Presentation [Line Items] | |||||
Date of incorporation | Feb. 9, 2016 | ||||
State of incorporation | E9 | ||||
Kind of listing | A ordinary shares | ||||
Number of business segments | Segment | 4 | ||||
Unrealized gains and losses recognized during the reporting period on equity securities | $ 23,147 | $ (22,022) | |||
Net cash flows from operating activities increase (decrease) | 32,376 | 42,069 | $ (18,909) | ||
Net cash flows from investing activities increase (decrease) | $ (80,244) | 5,320 | (28,951) | ||
Restatement Adjustment | |||||
Organization And Basis Of Presentation [Line Items] | |||||
Net cash flows from operating activities increase (decrease) | 4,700 | ||||
Net cash flows from investing activities increase (decrease) | $ (4,700) | ||||
Accounting Standards Update 2016-01 | |||||
Organization And Basis Of Presentation [Line Items] | |||||
Cumulative effect adjustment, net of tax | $ (10,000) | ||||
Unrealized gains and losses recognized during the reporting period on equity securities | $ (22,000) | ||||
Specialty Property and Farm, Ranch, & Stable | |||||
Organization And Basis Of Presentation [Line Items] | |||||
Number of business segments | Segment | 2 | ||||
Commercial Specialty | |||||
Organization And Basis Of Presentation [Line Items] | |||||
Number of product classifications | Product | 4 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2019USD ($)Entity | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Ownership interest exceeds respective investments | 3.00% | |||
Investments in other invested assets | $ 47,279,000 | $ 50,753,000 | ||
Cash and cash equivalents | 44,271,000 | 99,497,000 | $ 74,414,000 | $ 75,110,000 |
Allowance for bad debts | 2,800,000 | 2,300,000 | ||
Impairment of goodwill | 0 | 0 | ||
Impairments of indefinite lived intangible assets | 0 | 0 | ||
Impairment of definite lived intangible assets | 0 | 0 | ||
Amortization of deferred acquisition costs | 132,300,000 | 118,000,000 | 109,000,000 | |
Premium deficiency reserve | 0 | 0 | ||
Net foreign currency transaction gains (losses) | $ 300,000 | (2,900,000) | 2,100,000 | |
Variable Interest Entity, Not Primary Beneficiary | ||||
Significant Accounting Policies [Line Items] | ||||
Ownership interest exceeds respective investments | 3.00% | |||
Number of VIEs | Entity | 3 | |||
Allowance for Reinsurance Recoverable | ||||
Significant Accounting Policies [Line Items] | ||||
Allowance for uncollectible reinsurance receivables | $ 8,992,000 | 8,040,000 | $ 8,040,000 | $ 8,040,000 |
Money Market Funds | ||||
Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents | $ 35,800,000 | $ 77,400,000 |
Schedule of Amortized Cost and
Schedule of Amortized Cost and Estimated Fair Value of Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, Amortized Cost | $ 1,231,568 | $ 1,257,830 | |
Fixed maturities, Gross Unrealized Gains | 23,641 | 1,848 | |
Fixed maturities, Gross Unrealized losses | (2,050) | (24,523) | |
Fixed maturities, Estimated Fair Value | 1,253,159 | 1,235,155 | |
Other than temporary impairments recognized in AOCI | [1] | 0 | 0 |
Equity Securities, Amortized Cost | 263,104 | 124,747 | |
Equity Securities, Gross Unrealized Gains | 0 | 0 | |
Equity Securities, Gross Unrealized losses | 0 | 0 | |
Equity Securities, Estimated Fair Value | 263,104 | 124,747 | |
Other invested assets, Amortized Cost | 47,279 | 50,753 | |
Other invested assets, Gross Unrealized Gains | 0 | 0 | |
Other invested assets, Gross Unrealized losses | 0 | 0 | |
Other invested assets, Estimated Fair Value | 47,279 | 50,753 | |
Total, Amortized Cost | 1,541,951 | 1,433,330 | |
Total, Gross Unrealized Gains | 23,641 | 1,848 | |
Total, Gross Unrealized Losses | (2,050) | (24,523) | |
Total, Estimated Fair Value | 1,563,542 | 1,410,655 | |
U.S. Treasury and Agency Obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, Amortized Cost | 153,906 | 79,766 | |
Fixed maturities, Gross Unrealized Gains | 3,580 | 252 | |
Fixed maturities, Gross Unrealized losses | (797) | (1,163) | |
Fixed maturities, Estimated Fair Value | 156,689 | 78,855 | |
Other than temporary impairments recognized in AOCI | [1] | 0 | 0 |
Obligations of States and Political Subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, Amortized Cost | 63,256 | 95,629 | |
Fixed maturities, Gross Unrealized Gains | 853 | 322 | |
Fixed maturities, Gross Unrealized losses | (271) | (338) | |
Fixed maturities, Estimated Fair Value | 63,838 | 95,613 | |
Other than temporary impairments recognized in AOCI | [1] | 0 | 0 |
Mortgage Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, Amortized Cost | 325,448 | 119,327 | |
Fixed maturities, Gross Unrealized Gains | 3,177 | 313 | |
Fixed maturities, Gross Unrealized losses | (251) | (1,786) | |
Fixed maturities, Estimated Fair Value | 328,374 | 117,854 | |
Other than temporary impairments recognized in AOCI | [1] | 0 | 0 |
Asset-backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, Amortized Cost | 168,020 | 185,430 | |
Fixed maturities, Gross Unrealized Gains | 937 | 336 | |
Fixed maturities, Gross Unrealized losses | (420) | (2,012) | |
Fixed maturities, Estimated Fair Value | 168,537 | 183,754 | |
Other than temporary impairments recognized in AOCI | [1] | 0 | 0 |
Commercial Mortgage-Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, Amortized Cost | 183,944 | 206,236 | |
Fixed maturities, Gross Unrealized Gains | 4,369 | 338 | |
Fixed maturities, Gross Unrealized losses | (209) | (3,852) | |
Fixed maturities, Estimated Fair Value | 188,104 | 202,722 | |
Other than temporary impairments recognized in AOCI | [1] | 0 | 0 |
Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, Amortized Cost | 239,860 | 452,692 | |
Fixed maturities, Gross Unrealized Gains | 8,478 | 243 | |
Fixed maturities, Gross Unrealized losses | (79) | (12,080) | |
Fixed maturities, Estimated Fair Value | 248,259 | 440,855 | |
Other than temporary impairments recognized in AOCI | [1] | 0 | 0 |
Foreign Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed maturities, Amortized Cost | 97,134 | 118,750 | |
Fixed maturities, Gross Unrealized Gains | 2,247 | 44 | |
Fixed maturities, Gross Unrealized losses | (23) | (3,292) | |
Fixed maturities, Estimated Fair Value | 99,358 | 115,502 | |
Other than temporary impairments recognized in AOCI | [1] | 0 | $ 0 |
Common Stock | |||
Debt Securities, Available-for-sale [Line Items] | |||
Equity Securities, Estimated Fair Value | $ 135,300 | ||
[1] | Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”). |
Investments - Additional Inform
Investments - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2019USD ($)Entity | Dec. 31, 2018USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | $ 263,104,000 | $ 124,747,000 |
Investments in a single issuer as a percentage of shareholders' equity | 3.00% | 3.00% |
Fixed maturity securities with market value | $ 400,000 | |
Investments in insurance enhanced bonds | $ 36,500,000 | |
Insurance enhanced bonds as a percentage of total cash and invested assets | 2.30% | |
Investments In Collateralized Mortgage Obligations Commercial Mortgage Backed Securities And Taxable Municipal Bonds | $ 36,500,000 | |
Ownership interest exceeds respective investments | 3.00% | |
Variable Interest Entity, Not Primary Beneficiary | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of VIE's | Entity | 3 | |
Ownership interest exceeds respective investments | 3.00% | |
One of the Company's variable interest VIE's, invests in distressed securities and assets | ||
Debt Securities, Available-for-sale [Line Items] | ||
Significant variable interest in fair value of the non-consolidated VIE | $ 13,500,000 | 17,900,000 |
Variable interest entities, maximum exposure to loss | 27,700,000 | 32,100,000 |
Second VIE that invests in distressed securities and assets | ||
Debt Securities, Available-for-sale [Line Items] | ||
Significant variable interest in fair value of the non-consolidated VIE | 24,000,000 | 32,900,000 |
Variable interest entities, maximum exposure to loss | 41,000,000 | $ 53,400,000 |
Third VIE that invests in REIT qualifying assets | ||
Debt Securities, Available-for-sale [Line Items] | ||
Significant variable interest in fair value of the non-consolidated VIE | 9,800,000 | |
Variable interest entities, maximum exposure to loss | 10,300,000 | |
Municipal Bond Insurance Association | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments In Collateralized Mortgage Obligations Commercial Mortgage Backed Securities And Taxable Municipal Bonds | 3,900,000 | |
Assured Guaranty Corporation | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments In Collateralized Mortgage Obligations Commercial Mortgage Backed Securities And Taxable Municipal Bonds | 10,200,000 | |
Mutual Funds, Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | $ 54,600,000 | |
Fannie Mae Mortgage Pool | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment in mortgage pool as percentage of shareholders' equity | 4.20% | |
Municipal Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in insurance enhanced bonds | $ 16,300,000 | |
Federal Home Loan Mortgage Corporation | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments In Collateralized Mortgage Obligations Commercial Mortgage Backed Securities And Taxable Municipal Bonds | 20,100,000 | |
Ambac Financial Group | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments In Collateralized Mortgage Obligations Commercial Mortgage Backed Securities And Taxable Municipal Bonds | 2,200,000 | |
Federal Deposit Insurance Corporation | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments In Collateralized Mortgage Obligations Commercial Mortgage Backed Securities And Taxable Municipal Bonds | 100,000 | |
Common Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | 135,300,000 | |
Preferred Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | 11,700,000 | |
Mutual Funds, Common Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | 61,500,000 | |
U.S. Treasury and Agency Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 797,000 | |
Obligations of States and Political Subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 271,000 | |
Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 251,000 | |
Mortgage Backed Securities | AA+ Rating | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses for 12 months or greater | 7,000 | |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | $ 420,000 | |
Weighted average credit enhancement | 28.70% | |
Asset-backed Securities | A Rating | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses for 12 months or greater | $ 253,000 | |
Commercial Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | $ 209,000 | |
Weighted average credit enhancement | 30.00% | |
Investments in insurance enhanced bonds | $ 20,100,000 | |
Commercial Mortgage-Backed Securities | AA+ Rating | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses for 12 months or greater | 13,000 | |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 79,000 | |
Foreign Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 23,000 | |
Foreign Corporate Bonds | AA- Rating | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses for 12 months or greater | 3,000 | |
Collateralized Mortgage Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in insurance enhanced bonds | $ 100,000 |
Summary of Amortized Cost and E
Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | $ 18,857 | |
Due in one year through five years, Amortized Cost | 266,699 | |
Due in five years through ten years, Amortized Cost | 181,756 | |
Due in ten years through fifteen years, Amortized Cost | 25,728 | |
Due after fifteen years, Amortized Cost | 61,116 | |
Fixed maturities, Amortized Cost | 1,231,568 | $ 1,257,830 |
Due in one year or less, Estimated Fair value | 18,931 | |
Due in one year through five years, Estimated Fair value | 272,472 | |
Due in five years through ten years, Estimated Fair value | 186,057 | |
Due in ten years through fifteen years, Estimated Fair value | 26,338 | |
Due after fifteen years, Estimated Fair value | 64,346 | |
Fixed Maturities, estimated fair value | 1,253,159 | 1,235,155 |
Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 325,448 | |
Fixed maturities, Amortized Cost | 325,448 | 119,327 |
Estimated Fair value | 328,374 | |
Fixed Maturities, estimated fair value | 328,374 | 117,854 |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 168,020 | |
Fixed maturities, Amortized Cost | 168,020 | 185,430 |
Estimated Fair value | 168,537 | |
Fixed Maturities, estimated fair value | 168,537 | 183,754 |
Commercial Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 183,944 | |
Fixed maturities, Amortized Cost | 183,944 | 206,236 |
Estimated Fair value | 188,104 | |
Fixed Maturities, estimated fair value | $ 188,104 | $ 202,722 |
Summary of Securities with Gros
Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
U.S. Treasury and Agency Obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | $ (797) | ||
Obligations of States and Political Subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (271) | ||
Mortgage Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (251) | ||
Asset-backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (420) | ||
Commercial Mortgage-Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (209) | ||
Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (79) | ||
Foreign Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (23) | ||
Fixed Maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 249,721 | $ 542,881 | |
Less than 12 months, Gross Unrealized Losses | (1,774) | (13,271) | |
12 months or longer, Fair Value | [1] | 21,034 | 496,811 |
12 months or longer, Gross Unrealized Losses | [1] | (276) | (11,252) |
Total, Fair Value | 270,755 | 1,039,692 | |
Total, Gross Unrealized Losses | (2,050) | (24,523) | |
Fixed Maturities | U.S. Treasury and Agency Obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 35,633 | 0 | |
Less than 12 months, Gross Unrealized Losses | (797) | 0 | |
12 months or longer, Fair Value | [1] | 0 | 67,185 |
12 months or longer, Gross Unrealized Losses | [1] | 0 | (1,163) |
Total, Fair Value | 35,633 | 67,185 | |
Total, Gross Unrealized Losses | (797) | (1,163) | |
Fixed Maturities | Obligations of States and Political Subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 27,180 | 22,802 | |
Less than 12 months, Gross Unrealized Losses | (271) | (57) | |
12 months or longer, Fair Value | [1] | 0 | 28,179 |
12 months or longer, Gross Unrealized Losses | [1] | 0 | (281) |
Total, Fair Value | 27,180 | 50,981 | |
Total, Gross Unrealized Losses | (271) | (338) | |
Fixed Maturities | Mortgage Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 93,579 | 36,858 | |
Less than 12 months, Gross Unrealized Losses | (244) | (408) | |
12 months or longer, Fair Value | [1] | 902 | 60,838 |
12 months or longer, Gross Unrealized Losses | [1] | (7) | (1,378) |
Total, Fair Value | 94,481 | 97,696 | |
Total, Gross Unrealized Losses | (251) | (1,786) | |
Fixed Maturities | Asset-backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 43,402 | 96,085 | |
Less than 12 months, Gross Unrealized Losses | (167) | (1,342) | |
12 months or longer, Fair Value | [1] | 16,152 | 50,506 |
12 months or longer, Gross Unrealized Losses | [1] | (253) | (670) |
Total, Fair Value | 59,554 | 146,591 | |
Total, Gross Unrealized Losses | (420) | (2,012) | |
Fixed Maturities | Commercial Mortgage-Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 25,698 | 44,596 | |
Less than 12 months, Gross Unrealized Losses | (196) | (878) | |
12 months or longer, Fair Value | [1] | 1,945 | 127,557 |
12 months or longer, Gross Unrealized Losses | [1] | (13) | (2,974) |
Total, Fair Value | 27,643 | 172,153 | |
Total, Gross Unrealized Losses | (209) | (3,852) | |
Fixed Maturities | Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 19,407 | 285,997 | |
Less than 12 months, Gross Unrealized Losses | (79) | (8,791) | |
12 months or longer, Fair Value | [1] | 0 | 115,052 |
12 months or longer, Gross Unrealized Losses | [1] | 0 | (3,289) |
Total, Fair Value | 19,407 | 401,049 | |
Total, Gross Unrealized Losses | (79) | (12,080) | |
Fixed Maturities | Foreign Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 4,822 | 56,543 | |
Less than 12 months, Gross Unrealized Losses | (20) | (1,795) | |
12 months or longer, Fair Value | [1] | 2,035 | 47,494 |
12 months or longer, Gross Unrealized Losses | [1] | (3) | (1,497) |
Total, Fair Value | 6,857 | 104,037 | |
Total, Gross Unrealized Losses | $ (23) | $ (3,292) | |
[1] | Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. |
Schedule of Other Than Temporar
Schedule of Other Than Temporary Impairments on Investments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |||
OTTI losses, gross | $ (1,897) | $ (456) | $ (31) |
Portion of loss recognized in other comprehensive income (pre-tax) | 0 | 0 | 0 |
Net impairment losses on fixed maturities recognized in earnings | (1,897) | (456) | (31) |
Equity securities | 0 | 0 | (2,575) |
Total | $ (1,897) | $ (456) | $ (2,606) |
Schedule of Credit Losses Recog
Schedule of Credit Losses Recognized in Earnings (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |||
Balance at beginning of period | $ 13 | $ 13 | $ 31 |
Additions where no OTTI was previously recorded | 0 | 0 | 0 |
Additions where an OTTI was previously recorded | 0 | 0 | 0 |
Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery | 0 | 0 | 0 |
Reductions reflecting increases in expected cash flows to be collected | 0 | 0 | 0 |
Reductions for securities sold during the period | (13) | 0 | (18) |
Balance at end of period | $ 0 | $ 13 | $ 13 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income, Net of Tax (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Investments Debt And Equity Securities [Abstract] | |||
Fixed maturities | $ 21,591 | $ (22,675) | |
Foreign currency fluctuations | (1,032) | (1,334) | |
Deferred taxes | (2,950) | 2,778 | |
Accumulated other comprehensive income, net of tax | $ 17,609 | $ (21,231) | $ 8,983 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance, net of tax | $ (21,231) | $ 8,983 |
Other comprehensive income (loss) before reclassification, before tax | 50,627 | (25,776) |
Amounts reclassified from accumulated other comprehensive income (loss), before tax | (6,059) | 2,923 |
Other comprehensive income (loss), before tax | 44,568 | (22,853) |
Income tax benefit (expense) | (5,728) | 2,667 |
Cumulative effect adjustment, net of tax | (10,028) | |
Ending balance, net of tax | 17,609 | (21,231) |
Unrealized Gains and Losses on Available for Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance, net of tax | (19,897) | 8,272 |
Other comprehensive income (loss) before reclassification, before tax | 50,325 | (23,891) |
Amounts reclassified from accumulated other comprehensive income (loss), before tax | (6,059) | 2,923 |
Other comprehensive income (loss), before tax | 44,266 | (20,968) |
Income tax benefit (expense) | (5,728) | 2,667 |
Cumulative effect adjustment, net of tax | (9,868) | |
Ending balance, net of tax | 18,641 | (19,897) |
Foreign Currency Items | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance, net of tax | (1,334) | 711 |
Other comprehensive income (loss) before reclassification, before tax | 302 | (1,885) |
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 0 | 0 |
Other comprehensive income (loss), before tax | 302 | (1,885) |
Income tax benefit (expense) | 0 | 0 |
Cumulative effect adjustment, net of tax | (160) | |
Ending balance, net of tax | $ (1,032) | $ (1,334) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other net realized investment (gains) losses | $ (37,239) | $ 16,451 | $ (4,182) | ||||||||
Total before tax | $ (35,610) | $ (6,404) | $ (15,849) | $ (23,894) | $ 86,602 | $ (436) | $ (5,793) | $ (4,448) | (81,757) | 75,925 | 10,050 |
Income tax expense (benefit) | 11,742 | (19,229) | (499) | ||||||||
Net income (loss) | $ (29,031) | $ (6,721) | $ (14,663) | $ (19,600) | $ 73,317 | $ (3,728) | $ (7,192) | $ (5,701) | (70,015) | 56,696 | $ 9,551 |
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications, net of tax | (5,437) | 2,450 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available for Sale Securities | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other net realized investment (gains) losses | (7,956) | 2,467 | |||||||||
Other than temporary impairment losses on investments | 1,897 | 456 | |||||||||
Total before tax | (6,059) | 2,923 | |||||||||
Income tax expense (benefit) | 622 | (473) | |||||||||
Net income (loss) | (5,437) | 2,450 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Items | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other net realized investment (gains) losses | 0 | 0 | |||||||||
Income tax expense (benefit) | 0 | 0 | |||||||||
Net income (loss) | $ 0 | $ 0 |
Components of Net Realized Inve
Components of Net Realized Investment Gains (Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Total net realized investment gains (losses) | $ 24,052 | $ (2,690) | $ 3,590 | $ 10,390 | $ (24,740) | $ 5,319 | $ 2,830 | $ (316) | $ 35,342 | $ (16,907) | $ 1,576 | |
Equity securities, Gross realized gains | 40,730 | 6,491 | 4,178 | |||||||||
Equity securities, Gross realized losses | (6,737) | (22,592) | (3,206) | |||||||||
Equity securities, Total net realized investment gains (losses) | 33,993 | (16,101) | 972 | |||||||||
Not Designated as Hedging Instrument | Interest Rate Swap | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Gross realized gains | 3,518 | 3,906 | 3,555 | |||||||||
Gross realized losses | (8,228) | (1,789) | (3,630) | |||||||||
Total net realized investment gains (losses) | [1] | (4,710) | 2,117 | (75) | ||||||||
Fixed Maturities | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Gross realized gains | 9,675 | 354 | 4,066 | |||||||||
Gross realized losses | (3,616) | (3,277) | (3,387) | |||||||||
Total net realized investment gains (losses) | $ 6,059 | $ (2,923) | $ 679 | |||||||||
[1] | Includes periodic net interest settlements related to the derivatives of $1.2 million, $1.9 million, and $3.6 million for the years ended December 31, 2019, 2018, and 2017, respectively. |
Components of Net Realized In_2
Components of Net Realized Investment Gains (Losses) (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Net interest settlements | $ (4,710) | $ 2,117 | $ (75) |
Interest Rate Swap | |||
Debt Securities, Available-for-sale [Line Items] | |||
Net interest settlements | $ 1,200 | $ 1,900 | $ 3,600 |
Summary of Calculation of Reali
Summary of Calculation of Realized Gains and Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |||
Equity securities, Total net realized investment gains (losses) | $ 33,993 | $ (16,101) | $ 972 |
Less: Net gains (losses) recognized during the period on equity securities sold during the period | 10,846 | 5,921 | |
Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date | $ 23,147 | $ (22,022) |
Schedule of Proceeds From Sales
Schedule of Proceeds From Sales and Redemptions of Available for Sale Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |||
Fixed maturities | $ 977,321 | $ 293,348 | $ 918,439 |
Equity securities | $ 260,891 | $ 35,639 | $ 32,218 |
Schedule of Investment Income (
Schedule of Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Investment income | $ 45,267 | $ 49,178 | $ 42,250 | ||||||||
Investment expense | (3,215) | (2,836) | (2,927) | ||||||||
Net investment income | $ 9,659 | $ 11,348 | $ 13,826 | $ 7,219 | $ 12,234 | $ 11,750 | $ 10,954 | $ 11,404 | 42,052 | 46,342 | 39,323 |
Fixed Maturities | |||||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Investment income | 36,673 | 37,085 | 33,020 | ||||||||
Equity Securities | |||||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Investment income | 7,006 | 4,037 | 3,595 | ||||||||
Cash and Cash Equivalents | |||||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Investment income | 1,510 | 1,177 | 894 | ||||||||
Other Invested Assets | |||||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Investment income | $ 78 | $ 6,879 | $ 4,741 |
Schedule of Total Investment Re
Schedule of Total Investment Return (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |||||||||||
Net investment income | $ 9,659 | $ 11,348 | $ 13,826 | $ 7,219 | $ 12,234 | $ 11,750 | $ 10,954 | $ 11,404 | $ 42,052 | $ 46,342 | $ 39,323 |
Net realized investment gains(losses) | $ 24,052 | $ (2,690) | $ 3,590 | $ 10,390 | $ (24,740) | $ 5,319 | $ 2,830 | $ (316) | 35,342 | (16,907) | 1,576 |
Change in unrealized holding gains and losses | 44,568 | (22,853) | 14,424 | ||||||||
Net realized and unrealized investment returns | 79,910 | (39,760) | 16,000 | ||||||||
Total investment return | $ 121,962 | $ 6,582 | $ 55,323 | ||||||||
Total investment return % | 7.80% | 0.40% | 3.50% | ||||||||
Average investment portfolio | $ 1,558,565 | $ 1,522,805 | $ 1,597,487 |
Summary of Estimated Fair Value
Summary of Estimated Fair Values of Bonds Held on Deposit (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 431,356 | $ 418,831 |
On Deposit With Governmental Authorities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 26,431 | 25,855 |
Intercompany Trusts Held For Benefit Of U.S. Policyholders | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 179,116 | 209,028 |
Held In Trust Pursuant To Third Party Requirements | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 133,122 | 98,417 |
Letter Of Credit Held For Third Party Requirements | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 1,458 | 2,317 |
Securities Held As Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 91,229 | $ 83,214 |
Summarized Information on Locat
Summarized Information on Location and Gross Amount of Derivatives on Consolidated Balance Sheets (Detail) - Not Designated as Hedging Instrument - Other Assets Liabilities - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 274,710 | $ 200,000 | |
Fair Value | (10,275) | (4,062) | |
Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 200,000 | 200,000 | |
Fair Value | (10,275) | (4,062) | |
Futures Contracts on Bonds | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | [1] | 16,894 | 0 |
Fair Value | [1] | 0 | 0 |
Futures Contracts on Equities | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | [1] | 57,816 | 0 |
Fair Value | [1] | $ 0 | $ 0 |
[1] | Futures are settled daily such that their fair value is not reflected in the consolidated statements of financial position |
Summary of Net Gain (Loss) Incl
Summary of Net Gain (Loss) Included in Consolidated Statements of Operations for Changes in Fair Value of Derivatives and Periodic Net Interest Settlements Under Derivatives (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) for changes in fair value and net settlements of derivatives | $ (4,710) | $ 2,117 | $ (75) |
Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) for changes in fair value and net settlements of derivatives | 1,200 | 1,900 | 3,600 |
Interest Rate Swap | Net Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) for changes in fair value and net settlements of derivatives | (7,449) | 2,117 | (75) |
Futures Contracts on Bonds | Net Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) for changes in fair value and net settlements of derivatives | 873 | 0 | 0 |
Futures Contracts on Equities | Net Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) for changes in fair value and net settlements of derivatives | $ 1,866 | $ 0 | $ 0 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Trading Futures Contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Initial margin in securities | $ 3 | |
Mark-to-market receivable | 0.3 | |
Other Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Funds needed to post execute swap transaction | 3 | $ 2.6 |
Other Assets | Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Margin calls made in connection with interest rate swaps | $ 12.5 | $ 3.7 |
Company's Invested Assets and D
Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | $ 1,253,159 | $ 1,235,155 | |||
Equity securities | 263,104 | 124,747 | |||
U.S. Treasury and Agency Obligations | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 156,689 | 78,855 | |||
Obligations of States and Political Subdivisions | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 63,838 | 95,613 | |||
Mortgage Backed Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 328,374 | 117,854 | |||
Commercial Mortgage-Backed Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 188,104 | 202,722 | |||
Asset-backed Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 168,537 | 183,754 | |||
Corporate Bonds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 248,259 | 440,855 | |||
Foreign Corporate Bonds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 99,358 | 115,502 | |||
Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 1,253,159 | 1,235,155 | |||
Equity securities | 263,104 | 124,747 | |||
Total invested assets | 1,516,263 | [1] | 1,359,902 | [2] | |
Total invested liabilities | 10,275 | 4,062 | |||
Fair Value, Measurements, Recurring | Derivative instruments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested liabilities | 10,275 | 4,062 | |||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 156,689 | 78,855 | |||
Equity securities | 251,448 | 124,747 | |||
Total invested assets | 408,137 | [1] | 203,602 | [2] | |
Total invested liabilities | 0 | ||||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Derivative instruments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested liabilities | 0 | ||||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 1,096,470 | 1,156,300 | |||
Equity securities | 11,656 | ||||
Total invested assets | 1,108,126 | [1] | 1,156,300 | [2] | |
Total invested liabilities | 10,275 | 4,062 | |||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Derivative instruments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested liabilities | 10,275 | 4,062 | |||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 0 | ||||
Equity securities | 0 | ||||
Total invested assets | [1] | 0 | |||
Total invested liabilities | 0 | ||||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Derivative instruments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested liabilities | 0 | ||||
Fair Value, Measurements, Recurring | U.S. Treasury and Agency Obligations | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 156,689 | 78,855 | |||
Fair Value, Measurements, Recurring | U.S. Treasury and Agency Obligations | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 156,689 | 78,855 | |||
Fair Value, Measurements, Recurring | U.S. Treasury and Agency Obligations | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 0 | ||||
Fair Value, Measurements, Recurring | U.S. Treasury and Agency Obligations | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 0 | ||||
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 63,838 | 95,613 | |||
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 0 | ||||
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 63,838 | 95,613 | |||
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 0 | ||||
Fair Value, Measurements, Recurring | Mortgage Backed Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 328,374 | 117,854 | |||
Fair Value, Measurements, Recurring | Mortgage Backed Securities | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 0 | ||||
Fair Value, Measurements, Recurring | Mortgage Backed Securities | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 328,374 | 117,854 | |||
Fair Value, Measurements, Recurring | Mortgage Backed Securities | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 0 | ||||
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 188,104 | 202,722 | |||
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 0 | ||||
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 188,104 | 202,722 | |||
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 0 | ||||
Fair Value, Measurements, Recurring | Asset-backed Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 168,537 | 183,754 | |||
Fair Value, Measurements, Recurring | Asset-backed Securities | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 0 | ||||
Fair Value, Measurements, Recurring | Asset-backed Securities | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 168,537 | 183,754 | |||
Fair Value, Measurements, Recurring | Asset-backed Securities | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 0 | ||||
Fair Value, Measurements, Recurring | Corporate Bonds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 248,259 | 440,855 | |||
Fair Value, Measurements, Recurring | Corporate Bonds | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 0 | ||||
Fair Value, Measurements, Recurring | Corporate Bonds | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 248,259 | 440,855 | |||
Fair Value, Measurements, Recurring | Corporate Bonds | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 0 | ||||
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 99,358 | 115,502 | |||
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 0 | ||||
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | 99,358 | $ 115,502 | |||
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total invested assets | $ 0 | ||||
[1] | Excluded from the table above are limited partnerships of $47.3 million at December 31, 2019 whose fair value is based on net asset value as a practical expedient. | ||||
[2] | Excluded from the table above are limited partnerships of $50.8 million at December 31, 2018 whose fair value is based on net asset value as a practical expedient. |
Company's Invested Assets and_2
Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Other investment in limited partnership | $ 47,279 | $ 50,753 |
Current Fair Value of Debt (Det
Current Fair Value of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | $ 296,640 | $ 288,565 | |
Debt, fair value | 308,355 | 278,676 | |
7.75% Subordinated Notes due 2045 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | [1] | 96,864 | 96,742 |
Debt, fair value | [1] | 100,264 | 92,261 |
7.875% Subordinated Notes due 2047 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | [2] | 126,147 | 126,005 |
Debt, fair value | [2] | 134,462 | 120,597 |
Margin borrowing facilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 73,629 | 65,818 | |
Debt, fair value | $ 73,629 | $ 65,818 | |
[1] | As of December 31, 2019 and 2018, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.1 million and $3.3 million, respectively. | ||
[2] | As of December 31, 2019 and 2018, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $3.9 million and $4.0 million, respectively. |
Current Fair Value of Debt (Par
Current Fair Value of Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | Apr. 25, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
7.75% Subordinated Notes due 2045 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Subordinated Notes percentage | 7.75% | 7.75% | |
Subordinated Notes due date | 2045 | 2045 | 2045 |
Unamortized Debt Issuance Costs | $ 3,136 | $ 3,258 | |
7.875% Subordinated Notes due 2047 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Subordinated Notes percentage | 7.875% | 7.875% | |
Subordinated Notes due date | 2047 | 2047 | 2047 |
Unamortized Debt Issuance Costs | $ 3,853 | $ 3,995 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Apr. 25, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value assets, Transfers between level 1 and level 2 | $ 0 | $ 0 | $ 0 | |
Fair value liability, Transfers between level 1 and level 2 | 0 | 0 | 0 | |
Equity in the earnings of liability companies or partnerships | $ 0 | 0 | 0 | |
Ownership interest exceeds respective investments | 3.00% | |||
Equity Method Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity in the earnings of liability companies or partnerships | $ 6,900,000 | $ 4,700,000 | ||
Maximum | Equity Method Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity in the earnings of liability companies or partnerships | $ 100,000 | |||
Variable Interest Entity, Not Primary Beneficiary | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Ownership interest exceeds respective investments | 3.00% | |||
7.75% Subordinated Notes due 2045 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Subordinated Notes due date | 2045 | 2045 | 2045 | |
7.875% Subordinated Notes due 2047 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Subordinated Notes due date | 2047 | 2047 | 2047 | |
Fair Value, Inputs, Level 1 | 7.75% Subordinated Notes due 2045 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Subordinated Notes due date | 2045 | |||
Fair Value, Inputs, Level 1 | 7.875% Subordinated Notes due 2047 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Subordinated Notes due date | 2047 |
Fair Value and Future Funding C
Fair Value and Future Funding Commitments Related to These Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 47,279 | $ 50,753 | |
Future Funding Commitments | 31,720 | 34,714 | |
Real Estate Fund, LP | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [1] | 0 | 0 |
Future Funding Commitments | [1] | 0 | 0 |
European Non-Performing Loan Fund, LP | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [2] | 13,530 | 17,893 |
Future Funding Commitments | [2] | 14,214 | 14,214 |
Distressed Debt Fund, LP | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [3] | 23,966 | 32,860 |
Future Funding Commitments | [3] | 17,000 | 20,500 |
Mortgage Debt Fund, LP | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [4] | 9,783 | 0 |
Future Funding Commitments | [4] | $ 506 | $ 0 |
[1] | This limited partnership invests in real estate assets through a combination of direct or indirect investments in partnerships, limited liability companies, mortgage loans, and lines of credit. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company continues to hold an investment in this limited partnership and has written the fair value down to zero. | ||
[2] | This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. Based on the terms of the partnership agreement, the Company anticipates its interest in this partnership to be redeemed by 2020 unless extended with the consent of the limited partners. | ||
[3] | This limited partnership invests in stressed and distressed securities and structured products. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. Based on the terms of the partnership agreement, the Company anticipates its interest to be redeemed no later than 2027 unless extended with the consent of the limited partners. | ||
[4] | This limited partnership invests in REIT qualifying assets such as mortgage loans, investor property loans, and commercial mortgage loans. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. Based on the terms of the partnership agreement, the Company anticipates its interest to be redeemed no later than 2027 unless extended with the consent of the limited partners. |
Fair Value and Future Funding_2
Fair Value and Future Funding Commitments Related to These Investments (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Fair Value Disclosures [Abstract] | |
Fair value written down | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets And Goodwill [Line Items] | |||
Goodwill | $ 6,521,000 | $ 6,521,000 | |
Impairment of goodwill | 0 | 0 | |
Amortization of definite lived intangible assets | $ 500,000 | 500,000 | $ 500,000 |
Weighted average amortization period for definite lived intangible assets | 13 years 4 months 24 days | ||
Indefinite lived intangible assets | $ 19,000,000 | 19,000,000 | |
Impairment of indefinite lived intangible assets | 0 | 0 | |
Definite lived intangible assets | 2,500,000 | 3,000,000 | |
Impairment of definite lived intangible assets | 0 | 0 | |
Specialty Property and Farm, Ranch, & Stable | |||
Intangible Assets And Goodwill [Line Items] | |||
Goodwill | $ 6,500,000 | $ 6,500,000 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | $ 19,000 | $ 19,000 |
Weighted Average Amortization Period | 13 years 4 months 24 days | |
Cost | $ 25,800 | 25,800 |
Accumulated Amortization | 4,309 | 3,780 |
Net Value | 2,500 | 3,000 |
Net Value | 21,491 | 22,020 |
Trademarks | ||
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | 4,800 | 4,800 |
Trade names | ||
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | 4,200 | 4,200 |
State insurance licenses | ||
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | $ 10,000 | $ 10,000 |
Customer relationships | ||
Acquired Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 15 years | 15 years |
Cost | $ 5,300 | $ 5,300 |
Accumulated Amortization | 3,430 | 3,076 |
Net Value | $ 1,870 | $ 2,224 |
Agent Relationships | ||
Acquired Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 10 years | 10 years |
Cost | $ 900 | $ 900 |
Accumulated Amortization | 444 | 356 |
Net Value | $ 456 | $ 544 |
Trade names | ||
Acquired Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 7 years | 7 years |
Cost | $ 600 | $ 600 |
Accumulated Amortization | 435 | 348 |
Net Value | $ 165 | $ 252 |
Expected Amortization Expense (
Expected Amortization Expense (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | |
2020 | $ 529 |
2021 | 522 |
2022 | 443 |
2023 | 443 |
2024 | $ 443 |
Reinsurance Balances (Detail)
Reinsurance Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Effects of Reinsurance [Line Items] | ||||
Reinsurance receivables, net | $ 83,938 | $ 114,418 | ||
Collateral securing reinsurance receivables | (3,802) | (11,347) | ||
Reinsurance receivables, net of collateral | 80,136 | 103,071 | ||
Prepaid reinsurance premiums | 16,716 | 20,594 | ||
Allowance for Reinsurance Recoverable | ||||
Effects of Reinsurance [Line Items] | ||||
Allowance for uncollectible reinsurance receivables | $ 8,992 | $ 8,040 | $ 8,040 | $ 8,040 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Effects of Reinsurance [Line Items] | ||
Purchase accounting adjustments | $ 0.4 | $ 0.8 |
Minimum [Member] | ||
Effects of Reinsurance [Line Items] | ||
Unsecured reinsurance receivable percentage of shareholders' equity | 3.00% |
Unsecured Reinsurance Receivabl
Unsecured Reinsurance Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Reinsurance Receivables | $ 83,938 | $ 114,418 |
Munich Re America Corporation | A.M, Best A+ Rating | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Reinsurance Receivables | $ 44,129 |
Effect of Reinsurance on Premiu
Effect of Reinsurance on Premiums Written and Earned (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Insurance [Abstract] | ||||||||||||
Direct business | $ 548,618 | $ 495,129 | $ 433,922 | |||||||||
Reinsurance assumed | 88,243 | 52,768 | 82,412 | |||||||||
Reinsurance ceded | [1] | (74,772) | (75,350) | (66,154) | ||||||||
Net premiums | 562,089 | 472,547 | 450,180 | |||||||||
Direct business | 527,018 | 483,229 | 440,109 | |||||||||
Reinsurance assumed | 76,893 | 68,156 | 77,811 | |||||||||
Reinsurance ceded | [1] | (78,649) | (83,610) | (79,886) | ||||||||
Net premiums | $ 141,660 | $ 133,312 | $ 128,201 | $ 122,089 | $ 125,328 | $ 120,528 | $ 113,917 | $ 108,002 | $ 525,262 | $ 467,775 | $ 438,034 | |
[1] | Includes ceded written premiums of ($0.3) million, ($2.1) million, and ($1.3) million and ceded earned premiums of $2.3 million, $7.3 million and $13.5 million to American Bankers Insurance Company for the years ended December 31, 2019, 2018, and 2017, respectively. |
Effect of Reinsurance on Prem_2
Effect of Reinsurance on Premiums Written and Earned (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Ceded earned premiums | [1] | $ 78,649 | $ 83,610 | $ 79,886 |
American Bankers Insurance Company | ||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Ceded written premiums | (300) | (2,100) | (1,300) | |
Ceded earned premiums | $ 2,300 | $ 7,300 | $ 13,500 | |
[1] | Includes ceded written premiums of ($0.3) million, ($2.1) million, and ($1.3) million and ceded earned premiums of $2.3 million, $7.3 million and $13.5 million to American Bankers Insurance Company for the years ended December 31, 2019, 2018, and 2017, respectively. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | |||
Statutory income tax rates | 21.00% | 35.00% | |
Effective income tax expense rate | 14.40% | (25.30%) | (5.00%) |
Tax expense as a result of TCJA | $ 17,500,000 | ||
Alternative minimum tax credit carry forward | 11,000,000 | ||
AMT credit carryforward reclassed to federal income tax receivable | $ 10,989,000 | $ 10,866,000 | |
Net operating loss carryforwards | 21,871,000 | 29,480,000 | |
Section 163(j) carryforward | 9,023,000 | 11,075,000 | |
Payment of dividends | 14,222,000 | 14,027,000 | 0 |
Interest and penalties for uncertain tax positions | 0 | 0 | 0 |
Liabilities for tax-related interest and penalties | 0 | ||
Foreign Affiliate | |||
Income Tax [Line Items] | |||
Payment of dividends | $ 0 | $ 0 | 0 |
Global Indemnity Group, LLC | |||
Income Tax [Line Items] | |||
Withholding Tax | 5.00% | ||
Alternative Minimum Tax Credits | |||
Income Tax [Line Items] | |||
AMT credit carryforward reclassed to federal income tax receivable | $ 11,000,000 | ||
UNITED STATES | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 21.00% | ||
BERMUDA | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 0.00% | ||
CAYMAN ISLANDS | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 0.00% | ||
LUXEMBOURG | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 24.94% | ||
BARBADOS | Minimum [Member] | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 1.00% | ||
BARBADOS | Maximum | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 2.50% | ||
UNITED KINGDOM | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 19.00% | ||
IRELAND | Non Trading Income | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 25.00% | ||
IRELAND | Capital Gain | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 33.00% | ||
IRELAND | Trading Income | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 12.50% |
Income Before Income Taxes from
Income Before Income Taxes from its Non-U.S. Subsidiaries and U.S. Subsidiaries (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||||||||||
Gross written premiums | $ 636,861 | $ 547,897 | $ 516,334 | ||||||||
Net written premiums | 562,089 | 472,547 | 450,180 | ||||||||
Net earned premiums | $ 141,660 | $ 133,312 | $ 128,201 | $ 122,089 | $ 125,328 | $ 120,528 | $ 113,917 | $ 108,002 | 525,262 | 467,775 | 438,034 |
Net investment income | 9,659 | 11,348 | 13,826 | 7,219 | 12,234 | 11,750 | 10,954 | 11,404 | 42,052 | 46,342 | 39,323 |
Net realized investment gains (losses) | 24,052 | (2,690) | 3,590 | 10,390 | (24,740) | 5,319 | 2,830 | (316) | 35,342 | (16,907) | 1,576 |
Other income (loss) | 1,816 | 1,728 | 6,582 | ||||||||
Total revenues | 604,472 | 498,938 | 485,515 | ||||||||
Losses and Expenses: | |||||||||||
Net losses and loss adjustment expenses | 73,423 | 73,583 | 70,075 | 58,321 | 139,199 | 80,493 | 58,861 | 56,072 | 275,402 | 334,625 | 269,212 |
Acquisition costs and other underwriting expenses | 54,760 | 53,366 | 50,534 | 49,743 | 49,582 | 48,680 | 47,513 | 45,003 | 208,403 | 190,778 | 183,733 |
Corporate and other operating expenses | 18,888 | 29,766 | 25,714 | ||||||||
Interest expense | 20,022 | 19,694 | 16,906 | ||||||||
Income (loss) before income taxes | $ 35,610 | $ 6,404 | $ 15,849 | $ 23,894 | $ (86,602) | $ 436 | $ 5,793 | $ 4,448 | 81,757 | (75,925) | (10,050) |
Non-U.S. Subsidiaries | |||||||||||
Revenues: | |||||||||||
Gross written premiums | 88,282 | 48,050 | 212,386 | ||||||||
Net written premiums | 88,285 | 48,041 | 212,432 | ||||||||
Net earned premiums | 75,961 | 135,826 | 201,165 | ||||||||
Net investment income | 29,307 | 49,699 | 56,890 | ||||||||
Net realized investment gains (losses) | 3,121 | (669) | (641) | ||||||||
Other income (loss) | (165) | (210) | 216 | ||||||||
Total revenues | 108,224 | 184,646 | 257,630 | ||||||||
Losses and Expenses: | |||||||||||
Net losses and loss adjustment expenses | 36,502 | 91,178 | 94,903 | ||||||||
Acquisition costs and other underwriting expenses | 23,610 | 57,487 | 89,153 | ||||||||
Corporate and other operating expenses | 7,462 | 12,234 | 17,399 | ||||||||
Interest expense | 1,409 | 7,108 | 16,740 | ||||||||
Income (loss) before income taxes | 39,241 | 16,639 | 39,435 | ||||||||
U.S. Subsidiaries | |||||||||||
Revenues: | |||||||||||
Gross written premiums | 548,579 | 499,847 | 462,453 | ||||||||
Net written premiums | 473,804 | 424,506 | 237,748 | ||||||||
Net earned premiums | 449,301 | 331,949 | 236,869 | ||||||||
Net investment income | 26,816 | 27,294 | 24,609 | ||||||||
Net realized investment gains (losses) | 32,221 | (16,238) | 2,217 | ||||||||
Other income (loss) | 1,981 | 1,938 | 6,366 | ||||||||
Total revenues | 510,319 | 344,943 | 270,061 | ||||||||
Losses and Expenses: | |||||||||||
Net losses and loss adjustment expenses | 238,900 | 243,447 | 174,309 | ||||||||
Acquisition costs and other underwriting expenses | 184,793 | 133,291 | 94,580 | ||||||||
Corporate and other operating expenses | 11,426 | 17,532 | 8,315 | ||||||||
Interest expense | 32,684 | 43,237 | 42,342 | ||||||||
Income (loss) before income taxes | 42,516 | (92,564) | (49,485) | ||||||||
Eliminations | |||||||||||
Revenues: | |||||||||||
Gross written premiums | 0 | 0 | (158,505) | ||||||||
Net written premiums | 0 | 0 | 0 | ||||||||
Net earned premiums | 0 | 0 | 0 | ||||||||
Net investment income | (14,071) | (30,651) | (42,176) | ||||||||
Net realized investment gains (losses) | 0 | 0 | 0 | ||||||||
Other income (loss) | 0 | 0 | 0 | ||||||||
Total revenues | (14,071) | (30,651) | (42,176) | ||||||||
Losses and Expenses: | |||||||||||
Net losses and loss adjustment expenses | 0 | 0 | 0 | ||||||||
Acquisition costs and other underwriting expenses | 0 | 0 | 0 | ||||||||
Corporate and other operating expenses | 0 | 0 | 0 | ||||||||
Interest expense | (14,071) | (30,651) | (42,176) | ||||||||
Income (loss) before income taxes | $ 0 | $ 0 | $ 0 |
Components of Income Tax Expens
Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax expense (benefit): | |||
Foreign | $ (41) | $ 325 | $ 392 |
U.S. Federal | 0 | 0 | 127 |
Total current income tax expense (benefit) | (41) | 325 | 519 |
Deferred income tax expense (benefit): | |||
U.S. tax rate change | 0 | 0 | 17,524 |
U.S. Federal | 11,783 | (19,554) | (18,542) |
Total deferred income tax expense (benefit) | 11,783 | (19,554) | (1,018) |
Total income tax expense (benefit) | $ 11,742 | $ (19,229) | $ (499) |
Differences in Tax Provision fo
Differences in Tax Provision for Financial Statement Purposes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Expected tax provision at weighted average | $ 8,928 | $ (19,112) | $ (16,928) |
Adjustments: | |||
Tax exempt interest | (3) | (6) | (213) |
Dividend exclusion | (284) | (279) | (571) |
Tax rate change | 0 | 0 | 17,524 |
Non-deductible interest | 2,714 | 356 | 0 |
Other | 387 | (188) | (311) |
Total income tax expense (benefit) | $ 11,742 | $ (19,229) | $ (499) |
Expected tax provision at weighted average | 10.90% | (25.20%) | (168.40%) |
Adjustments: | |||
Tax exempt interest, % of Pre-Tax Income | (0.00%) | (0.00%) | (2.10%) |
Dividend exclusion, % of Pre-Tax Income | (0.30%) | (0.40%) | (5.70%) |
Tax rate change, % of Pre-Tax Income | 0.00% | 0.00% | 174.40% |
Non-deductible interest, % of Pre-Tax Income | 3.30% | 0.50% | 0.00% |
Other, % of Pre-Tax Income | 0.50% | (0.20%) | (3.20%) |
Effective income tax expense (benefit) | 14.40% | (25.30%) | (5.00%) |
Tax Effects of Temporary Differ
Tax Effects of Temporary Differences That Give Rise to Significant Portions of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Discounted unpaid losses and loss adjustment expenses | $ 3,681 | $ 3,482 |
Unearned premiums | 10,234 | 9,206 |
Section 163(j) carryforward | 9,023 | 11,075 |
Net operating loss carryforward | 21,871 | 29,480 |
Partnership K1 basis differences | 1,703 | 113 |
Loss on derivative instruments | 2,158 | 853 |
Investment impairments | 1 | 816 |
Stock options | 1,352 | 1,375 |
Stat-to-GAAP reinsurance reserve | 874 | 895 |
Unrealized loss on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income (loss) | 0 | 2,778 |
Unrealized loss on equity securities | 0 | 1,409 |
Intercompany transfers | 0 | 210 |
Other | 1,840 | 1,860 |
Total deferred tax assets | 52,737 | 63,552 |
Deferred tax liabilities: | ||
Intangible assets | 3,112 | 3,150 |
Unrealized gain on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income (loss) | 2,950 | 0 |
Unrealized gain on equity securities | 3,438 | 0 |
Investment basis differences | 0 | 212 |
Deferred acquisition costs | 11,608 | 10,525 |
Depreciation and amortization | 436 | 528 |
Other | 116 | 548 |
Total deferred tax liabilities | 21,660 | 14,963 |
Total net deferred tax assets | $ 31,077 | $ 48,589 |
Summarized Activity in Liabilit
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance [Abstract] | |||
Balance at beginning of period | $ 680,031 | $ 634,664 | $ 651,042 |
Less: Ceded reinsurance receivables | 109,342 | 97,243 | 130,439 |
Net balance at beginning of period | 570,689 | 537,421 | 520,603 |
Purchased reserves, gross | 0 | 0 | 19,333 |
Less: Purchased reserves ceded | 0 | 0 | (29) |
Purchase reserves, net of third party reinsurance | 0 | 0 | 19,362 |
Incurred losses and loss adjustment expenses related to: | |||
Current year | 308,211 | 363,423 | 323,112 |
Prior years | (32,809) | (28,798) | (53,900) |
Total incurred losses and loss adjustment expenses | 275,402 | 334,625 | 269,212 |
Paid losses and loss adjustment expenses related to: | |||
Current year | 146,128 | 173,545 | 156,325 |
Prior years | 146,055 | 127,812 | 115,431 |
Total paid losses and loss adjustment expenses | 292,183 | 301,357 | 271,756 |
Net balance at end of period | 553,908 | 570,689 | 537,421 |
Plus: Ceded reinsurance receivables | 76,273 | 109,342 | 97,243 |
Balance at end of period | $ 630,181 | $ 680,031 | $ 634,664 |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 08, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | $ (32,809) | $ (28,798) | $ (53,900) | ||
Unpaid losses and loss adjustment expense reserves | 630,181 | 680,031 | 634,664 | $ 651,042 | |
Unpaid losses and loss adjustment expense reserves, net | 553,908 | 570,689 | 537,421 | 520,603 | |
Unpaid losses and loss adjustment expense reserves | $ 29,033 | $ 29,524 | $ 30,124 | $ 29,890 | |
Survival ratio on a gross basis for open A&E claims, periods | 32 years 1 month 6 days | 24 years 2 months 12 days | 20 years 8 months 12 days | ||
Survival ratio on net basis for open A&E claims, periods | 47 years 9 months 18 days | 35 years 8 months 12 days | 35 years 7 months 6 days | ||
Global Indemnity Group, LLC | American Reliable Insurance Company | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Reserve Settlement | $ 41,500 | ||||
Proceeds for loss and loss adjustment expenses paid | 38,800 | ||||
Proceeds for accrued interest | 6,200 | ||||
Payment for the difference between the agreed upon purchase price and actual settlement | $ 3,500 | ||||
Construction Defect | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Unpaid losses and loss adjustment expense reserves | $ 36,900 | $ 42,400 | |||
Unpaid losses and loss adjustment expense reserves, net | 35,400 | 39,300 | |||
IBNR Reserves | Asbestos | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Unpaid losses and loss adjustment expense reserves | 27,100 | 27,400 | $ 26,900 | ||
Case Reserves | Asbestos | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Unpaid losses and loss adjustment expense reserves | 2,000 | 2,100 | 3,300 | ||
Commercial Specialty | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (18,400) | (7,300) | (39,400) | ||
Commercial Specialty | General Liability | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (14,500) | (26,900) | |||
Commercial Specialty | General Liability | Accident Years 2004 through 2018 | Construction Defect | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (3,500) | ||||
Commercial Specialty | General Liability | Accident Years 1999 through 2017 | Other General Liability | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (11,000) | ||||
Commercial Specialty | General Liability | Accident Years 2002 through 2004, 2006 through 2017 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (1,300) | ||||
Commercial Specialty | General Liability | Accident Years 2005 Through 2016 | Construction Defect | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (6,900) | ||||
Commercial Specialty | General Liability | Accident Years 2005 through 2014 | Other General Liability | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (20,000) | ||||
Commercial Specialty | Commercial Auto Liability | Accident Years 2000 through 2002, 2010 through 2013, 2015 and 2016 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (2,000) | ||||
Commercial Specialty | Commercial Auto Liability | Accident Years 2010, 2012, 2013, 2015 and 2017 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (3,200) | ||||
Commercial Specialty | Professional Liability | Accident Years 2007 Through 2011 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (1,900) | ||||
Commercial Specialty | Professional Liability | Accident Years 2008, 2011 and 2014 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (900) | ||||
Commercial Specialty | Property Lines | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (6,300) | ||||
Commercial Specialty | Property Lines | Accident Years 2010 and 2012 through 2018 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (900) | ||||
Commercial Specialty | Property Lines | Accident Years 2007 and 2014 through 2017 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (1,900) | ||||
Commercial Specialty | Property Lines | Accident Years 2011 through 2015 | Noncatastrophe | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (4,000) | ||||
Commercial Specialty | Property Lines | Accident Years 2011 through 2016 | Catastrophe | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (2,300) | ||||
Commercial Specialty | Reinsurance | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | 1,000 | ||||
Commercial Specialty | Professional | Accident Years 2006 through 2008 and 2011 through 2012 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (5,800) | ||||
Commercial Specialty | Workers Compensation | Accident Year 2011 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (500) | ||||
Specialty Property | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (10,800) | (7,900) | (1,600) | ||
Specialty Property | General Liability | Accident Years 2014 through 2016 and 2018 and 2010 and 2017 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (600) | ||||
Specialty Property | General Liability | Accident Years 2011 through 2014 and 2016 through 2017 and 2015 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (2,200) | ||||
Specialty Property | General Liability | Accident Years 2015 and 2016 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | 2,400 | ||||
Specialty Property | Property Lines | Accident Year 2015 through 2018 | Catastrophe | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (10,200) | ||||
Specialty Property | Property Lines | Accident Years 2014 through 2017 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (5,700) | ||||
Specialty Property | Property Lines | Accident Years 2012, 2013, 2015, and 2016 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (4,000) | ||||
Farm, Ranch & Stable | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (5,500) | (4,700) | (5,000) | ||
Farm, Ranch & Stable | Property Lines | Accident Year 2015 through 2018 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (3,900) | ||||
Farm, Ranch & Stable | Property Lines | Accident Years 2014 through 2017 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (1,300) | ||||
Farm, Ranch & Stable | Property Lines | Accident Years 2016 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (2,100) | ||||
Farm, Ranch & Stable | Liability Lines | Accident Year 2015 through 2017, 2013, 2014 and 2018 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (1,600) | ||||
Farm, Ranch & Stable | Liability Lines | Accident Years 2012, 2014, 2016 and 2017, 2007 and 2013 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (3,400) | ||||
Farm, Ranch & Stable | Liability Lines | Accident Years 2015 and 2016 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (2,900) | ||||
Reinsurance Operations | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | 1,900 | (8,900) | (7,900) | ||
Reinsurance Operations | Professional Liability | Accident Years 2008, 2010 and 2013 through 2015 and 2007 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (3,100) | ||||
Reinsurance Operations | Property Lines | Accident Years 2016 through 2018 and 2011 through 2015 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | 5,000 | ||||
Reinsurance Operations | Property Lines | Accident Years 2018 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | $ 9,000 | ||||
Reinsurance Operations | Property Lines | Accident Years 2007, 2009 through 2017 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | $ (8,900) | ||||
Reinsurance Operations | Property Lines | Accident years 2008 through 2016 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | $ (7,900) |
Gross Reserves for Asbestos and
Gross Reserves for Asbestos and Environmental Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance [Abstract] | |||
Gross reserve for A&E losses and loss adjustment expenses – beginning of period | $ 50,445 | $ 51,873 | $ 51,919 |
Plus: Change in incurred losses and loss adjustment expenses | (2) | (1) | 1,470 |
Less: Payments | 1,618 | 1,427 | 1,516 |
Gross reserves for A&E losses and loss adjustment expenses – end of period | $ 48,825 | $ 50,445 | $ 51,873 |
Net Reserves for Asbestos and E
Net Reserves for Asbestos and Environmental Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance [Abstract] | |||
Net reserve for A&E losses and loss adjustment expenses – beginning of period | $ 29,524 | $ 30,124 | $ 29,890 |
Plus: Change in incurred losses and loss adjustment expenses | (1) | 0 | 967 |
Less: Payments | 490 | 600 | 733 |
Net reserves for A&E losses and loss adjustment expenses – end of period | $ 29,033 | $ 29,524 | $ 30,124 |
Incurred Claims and Allocated C
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Detail) $ in Thousands | Dec. 31, 2019USD ($)Claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | |
Commercial Specialty | Property Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 162,699 | ||||||||||
Commercial Specialty | Property Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 45,627 | $ 43,805 | $ 44,785 | ||||||||
IBNR | [1] | $ 1,468 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,960 | ||||||||||
Commercial Specialty | Property Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 62,219 | 60,555 | |||||||||
IBNR | [1] | $ 1,853 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,688 | ||||||||||
Commercial Specialty | Property Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 54,853 | ||||||||||
IBNR | [1] | $ 8,966 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,669 | ||||||||||
Commercial Specialty | Casualty Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 614,779 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 53,385 | 54,572 | 54,338 | ||||||||
IBNR | [1] | $ 16,667 | |||||||||
Cumulative Number of Reported Claims | Claim | 1,795 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 57,457 | 57,879 | |||||||||
IBNR | [1] | $ 27,742 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,062 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 68,952 | ||||||||||
IBNR | [1] | $ 51,764 | |||||||||
Cumulative Number of Reported Claims | Claim | 1,747 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 79,022 | 80,012 | 82,824 | $ 84,681 | $ 91,368 | $ 94,484 | $ 101,113 | $ 102,252 | $ 101,830 | $ 79,188 | |
IBNR | [1] | $ 6,152 | |||||||||
Cumulative Number of Reported Claims | Claim | 3,528 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 83,825 | 87,045 | 84,269 | 96,361 | 108,720 | 115,193 | 117,288 | 117,602 | 115,441 | ||
IBNR | [1] | $ 4,144 | |||||||||
Cumulative Number of Reported Claims | Claim | 3,887 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 47,966 | 50,022 | 52,504 | 55,137 | 63,359 | 65,637 | 65,911 | 61,340 | |||
IBNR | [1] | $ 6,686 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,411 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 58,756 | 61,487 | 64,877 | 66,301 | 67,702 | 68,089 | 63,807 | ||||
IBNR | [1] | $ 4,505 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,548 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 53,955 | 56,129 | 56,837 | 58,042 | 60,227 | 61,325 | |||||
IBNR | [1] | $ 8,413 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,345 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 59,568 | 58,392 | 57,775 | 56,620 | 57,262 | ||||||
IBNR | [1] | $ 10,462 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,101 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 51,893 | 53,584 | 53,776 | 54,130 | |||||||
IBNR | [1] | $ 9,740 | |||||||||
Cumulative Number of Reported Claims | Claim | 1,927 | ||||||||||
Specialty Property | Property Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 192,745 | ||||||||||
Specialty Property | Property Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 112,947 | 122,164 | |||||||||
IBNR | [1] | $ 3,917 | |||||||||
Cumulative Number of Reported Claims | Claim | 15,093 | ||||||||||
Specialty Property | Property Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 79,798 | ||||||||||
IBNR | [1] | $ 7,553 | |||||||||
Cumulative Number of Reported Claims | Claim | 9,695 | ||||||||||
Specialty Property | Casualty Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 34,654 | ||||||||||
Specialty Property | Casualty Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 7,515 | 6,966 | 7,213 | ||||||||
IBNR | [1] | $ 1,650 | |||||||||
Cumulative Number of Reported Claims | Claim | 503 | ||||||||||
Specialty Property | Casualty Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 5,028 | 5,242 | |||||||||
IBNR | [1] | $ 3,194 | |||||||||
Cumulative Number of Reported Claims | Claim | 330 | ||||||||||
Specialty Property | Casualty Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 3,986 | ||||||||||
IBNR | [1] | $ 3,158 | |||||||||
Cumulative Number of Reported Claims | Claim | 234 | ||||||||||
Specialty Property | Casualty Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 11,412 | 11,656 | 11,230 | 8,455 | 6,875 | ||||||
IBNR | [1] | $ 1,155 | |||||||||
Cumulative Number of Reported Claims | Claim | 856 | ||||||||||
Specialty Property | Casualty Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 6,713 | 7,613 | 8,068 | 8,249 | |||||||
IBNR | [1] | $ 1,467 | |||||||||
Cumulative Number of Reported Claims | Claim | 854 | ||||||||||
Farm, Ranch & Stable | Property Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 69,496 | ||||||||||
Farm, Ranch & Stable | Property Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 32,376 | 34,811 | |||||||||
IBNR | [1] | $ 1,704 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,760 | ||||||||||
Farm, Ranch & Stable | Property Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 37,120 | ||||||||||
IBNR | [1] | $ 2,332 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,890 | ||||||||||
Farm, Ranch & Stable | Casualty Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 51,830 | ||||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 10,600 | 12,171 | 12,786 | ||||||||
IBNR | [1] | $ 4,562 | |||||||||
Cumulative Number of Reported Claims | Claim | 488 | ||||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 10,559 | 9,934 | |||||||||
IBNR | [1] | $ 5,419 | |||||||||
Cumulative Number of Reported Claims | Claim | 529 | ||||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 9,781 | ||||||||||
IBNR | [1] | $ 6,957 | |||||||||
Cumulative Number of Reported Claims | Claim | 452 | ||||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 10,383 | 10,664 | 10,621 | 12,052 | 12,055 | ||||||
IBNR | [1] | $ 1,525 | |||||||||
Cumulative Number of Reported Claims | Claim | 475 | ||||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 10,507 | 11,977 | 13,005 | 13,226 | |||||||
IBNR | [1] | $ 2,077 | |||||||||
Cumulative Number of Reported Claims | Claim | 545 | ||||||||||
Reinsurance Operations | Property Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 192,222 | ||||||||||
Reinsurance Operations | Property Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 51,711 | 50,032 | 43,782 | ||||||||
IBNR | [1] | 10,371 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 66,314 | 59,022 | |||||||||
IBNR | [1] | 19,511 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 32,442 | ||||||||||
IBNR | [1] | 27,907 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 6,130 | 6,471 | 6,345 | 6,698 | 8,197 | 9,948 | 15,153 | ||||
IBNR | [1] | 332 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 13,554 | 14,301 | 13,590 | 14,139 | 18,861 | 21,787 | |||||
IBNR | [1] | 642 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 9,050 | 9,945 | 12,526 | 16,738 | 19,877 | ||||||
IBNR | [1] | 1,005 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 13,021 | 12,497 | 22,485 | 23,646 | |||||||
IBNR | [1] | 2,255 | |||||||||
Reinsurance Operations | Casualty Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 147,830 | ||||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 4,358 | 4,358 | 4,358 | ||||||||
IBNR | [1] | 4,356 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 5,573 | 5,573 | |||||||||
IBNR | [1] | 5,573 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 13,686 | ||||||||||
IBNR | [1] | 13,575 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 59,426 | 60,151 | 60,573 | 60,701 | 61,792 | 61,062 | 62,628 | 57,916 | 53,279 | $ 41,831 | |
IBNR | [1] | 1,009 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 41,826 | 42,235 | 42,968 | 43,657 | 46,510 | 47,980 | 44,692 | 48,846 | $ 45,726 | ||
IBNR | [1] | 762 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 16,449 | 16,982 | 17,348 | 17,360 | 17,579 | 17,123 | 15,624 | $ 15,865 | |||
IBNR | [1] | 473 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 112 | 974 | 974 | 1,013 | 1,172 | 1,262 | $ 1,224 | ||||
IBNR | [1] | 14 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 593 | 1,957 | 1,957 | 2,060 | 2,095 | $ 1,988 | |||||
IBNR | [1] | 590 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 2,180 | 2,780 | 2,780 | 2,911 | $ 2,908 | ||||||
IBNR | [1] | 2,179 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 3,627 | $ 3,627 | $ 3,627 | $ 3,627 | |||||||
IBNR | [1] | $ 3,627 | |||||||||
[1] | Incurred-but-not-reported liabilities plus expected development on reported claims |
Supplementary Information about
Supplementary Information about Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Claims Development [Line Items] | ||||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | $ 528,899 | |||||||||
Commercial Specialty | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 132,020 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 33,651 | |||||||||
Commercial Specialty | Property Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 42,699 | $ 37,712 | $ 28,541 | |||||||
Commercial Specialty | Property Insurance | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 54,400 | 36,161 | ||||||||
Commercial Specialty | Property Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 34,921 | |||||||||
Commercial Specialty | Property Insurance | All outstanding liabilities before 2017, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 2,972 | |||||||||
Commercial Specialty | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 405,327 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 274,535 | |||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 22,988 | 12,711 | 4,914 | |||||||
Commercial Specialty | Casualty Insurance | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 13,827 | 4,297 | ||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,174 | |||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 71,951 | 70,300 | 69,615 | $ 67,277 | $ 65,377 | $ 58,913 | $ 50,520 | $ 34,659 | $ 19,926 | $ 5,503 |
Commercial Specialty | Casualty Insurance | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 78,595 | 77,675 | 74,839 | 72,087 | 64,722 | 56,562 | 41,282 | 21,325 | 5,451 | |
Commercial Specialty | Casualty Insurance | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 40,595 | 39,899 | 39,596 | 36,360 | 31,231 | 22,456 | 11,884 | 3,500 | ||
Commercial Specialty | Casualty Insurance | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 52,265 | 50,964 | 46,272 | 38,438 | 29,510 | 17,881 | 6,400 | |||
Commercial Specialty | Casualty Insurance | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 42,517 | 39,361 | 33,697 | 26,268 | 15,690 | 3,968 | ||||
Commercial Specialty | Casualty Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 42,543 | 35,816 | 25,147 | 14,584 | 3,336 | |||||
Commercial Specialty | Casualty Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 34,872 | 21,966 | 14,027 | 4,135 | ||||||
Commercial Specialty | Casualty Insurance | All outstanding liabilities before 2010, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 65,083 | |||||||||
Specialty Property | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 173,541 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 24,350 | |||||||||
Specialty Property | Property Insurance | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 106,755 | 99,741 | ||||||||
Specialty Property | Property Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 66,786 | |||||||||
Specialty Property | Property Insurance | All outstanding liabilities before 2018, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 5,146 | |||||||||
Specialty Property | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 21,144 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 14,819 | |||||||||
Specialty Property | Casualty Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,502 | 2,658 | 979 | |||||||
Specialty Property | Casualty Insurance | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,339 | 248 | ||||||||
Specialty Property | Casualty Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 397 | |||||||||
Specialty Property | Casualty Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 10,050 | 9,129 | 6,698 | 4,979 | 1,301 | |||||
Specialty Property | Casualty Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,856 | 3,889 | 2,654 | 1,165 | ||||||
Specialty Property | Casualty Insurance | All outstanding liabilities before 2015, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 1,309 | |||||||||
Farm, Ranch & Stable | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 61,936 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 8,849 | |||||||||
Farm, Ranch & Stable | Property Insurance | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 30,475 | 27,427 | ||||||||
Farm, Ranch & Stable | Property Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 31,461 | |||||||||
Farm, Ranch & Stable | Property Insurance | All outstanding liabilities before 2018, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 1,289 | |||||||||
Farm, Ranch & Stable | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 24,643 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 28,733 | |||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,242 | 2,145 | 1,153 | |||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,225 | 1,092 | ||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,626 | |||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 8,481 | 6,986 | 6,228 | 3,778 | 2,138 | |||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 7,069 | 5,954 | 4,231 | 2,342 | ||||||
Farm, Ranch & Stable | Casualty Insurance | All outstanding liabilities before 2015, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 1,546 | |||||||||
Reinsurance Operations | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 83,824 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 109,257 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 28,079 | 20,609 | 2,152 | |||||||
Reinsurance Operations | Property Insurance | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 21,608 | 21 | ||||||||
Reinsurance Operations | Property Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 139 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,593 | 5,735 | 5,255 | 5,111 | 5,835 | 4,008 | 723 | |||
Reinsurance Operations | Property Insurance | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 12,480 | 12,339 | 11,182 | 10,460 | 9,035 | 2,243 | ||||
Reinsurance Operations | Property Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 7,411 | 7,139 | 6,768 | 5,163 | 742 | |||||
Reinsurance Operations | Property Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 8,514 | 7,161 | 5,704 | 2,071 | ||||||
Reinsurance Operations | Property Insurance | All outstanding liabilities before 2013, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 859 | |||||||||
Reinsurance Operations | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 114,357 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 34,705 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2 | 2 | 0 | |||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 27 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 58,088 | 57,042 | 56,960 | 55,848 | 55,315 | 39,123 | 36,090 | 30,754 | 21,447 | $ 10,185 |
Reinsurance Operations | Casualty Insurance | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 40,476 | 40,303 | 40,079 | 39,815 | 38,907 | 36,020 | 28,495 | 20,072 | $ 7,968 | |
Reinsurance Operations | Casualty Insurance | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 15,691 | 15,625 | 15,790 | 15,696 | 15,534 | 11,658 | 9,435 | $ 5,312 | ||
Reinsurance Operations | Casualty Insurance | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 71 | 65 | 65 | 65 | 62 | 50 | $ 123 | |||
Reinsurance Operations | Casualty Insurance | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1 | 1 | 1 | 50 | 47 | $ 88 | ||||
Reinsurance Operations | Casualty Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1 | $ 1 | $ 1 | $ 128 | $ 107 | |||||
Reinsurance Operations | Casualty Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | |||||||||
Reinsurance Operations | Casualty Insurance | All outstanding liabilities before 2010, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | $ 1,232 |
Supplementary Information of Av
Supplementary Information of Average Historical Claims (Detail) | Dec. 31, 2019 | |
Commercial Specialty | Property Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 61.40% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 24.70% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 10.90% | |
Commercial Specialty | Casualty Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 7.70% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 18.30% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 19.50% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 18.30% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 11.00% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 7.50% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year seven | 2.10% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year eight | 2.60% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year nine | 1.00% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year ten | 2.10% | |
Specialty Property | Property Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 86.00% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 6.20% | |
Specialty Property | Casualty Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 11.30% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 24.60% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 19.30% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 17.90% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 8.10% | |
Farm, Ranch & Stable | Property Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 84.70% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 9.40% | |
Farm, Ranch & Stable | Casualty Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 16.10% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 15.80% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 19.90% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 9.00% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 14.40% | |
Reinsurance Operations | Property Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 8.20% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 41.50% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 16.70% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 2.00% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 4.60% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 4.40% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year seven | (2.30%) | |
Reinsurance Operations | Casualty Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 19.80% | [1] |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 0.20% | [1] |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 6.80% | [1] |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 6.30% | [1] |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 2.20% | [1] |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 6.00% | [1] |
Average annual percentage payout of incurred claims by age, net of reinsurance year seven | 1.60% | [1] |
Average annual percentage payout of incurred claims by age, net of reinsurance year eight | 0.90% | [1] |
Average annual percentage payout of incurred claims by age, net of reinsurance year nine | 0.30% | [1] |
Average annual percentage payout of incurred claims by age, net of reinsurance year ten | 1.80% | [1] |
[1] | May not be indicative of future average annual percentage payout of incurred claims due to a change in mix of business |
Reconciliation of Net Incurred
Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and Loss Adjustment Expenses in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | $ 528,899 | |||
Reinsurance recoverable on unpaid claims | 74,251 | |||
Total other outstanding liabilities | 27,031 | |||
Total gross liability for unpaid losses and loss adjustment expenses | 630,181 | $ 680,031 | $ 634,664 | $ 651,042 |
Commercial Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Ceded Allowance | 8,992 | |||
Unallocated claims adjustment expenses | 15,707 | |||
Purchase accounting adjustment | (400) | |||
Loss Clearing | (1,939) | |||
Commercial Specialty | Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 33,651 | |||
Reinsurance recoverable on unpaid claims | 12,472 | |||
Commercial Specialty | Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 274,535 | |||
Reinsurance recoverable on unpaid claims | 47,130 | |||
Specialty Property | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unallocated claims adjustment expenses | 1,074 | |||
Loss Clearing | 1 | |||
Fronted business ceded to Assurant | 2,421 | |||
Specialty Property | Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 24,350 | |||
Reinsurance recoverable on unpaid claims | 6,219 | |||
Specialty Property | Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 14,819 | |||
Reinsurance recoverable on unpaid claims | 1,450 | |||
Farm, Ranch & Stable | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Ceded Allowance | 0 | |||
Unallocated claims adjustment expenses | 1,040 | |||
Loss Clearing | 0 | |||
Farm, Ranch & Stable | Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 8,849 | |||
Reinsurance recoverable on unpaid claims | 563 | |||
Farm, Ranch & Stable | Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 28,733 | |||
Reinsurance recoverable on unpaid claims | 6,417 | |||
Reinsurance Operations | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unallocated claims adjustment expenses | 365 | |||
Other | (230) | |||
Reinsurance Operations | Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 109,257 | |||
Reinsurance recoverable on unpaid claims | 0 | |||
Reinsurance Operations | Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 34,705 | |||
Reinsurance recoverable on unpaid claims | $ 0 |
Outstanding Debt (Detail)
Outstanding Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Debt | $ 296,640 | $ 288,565 | |
7.75% Subordinated Notes due 2045 | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 96,864 | 96,742 |
7.875% Subordinated Notes due 2047 | |||
Debt Instrument [Line Items] | |||
Debt | [2] | 126,147 | 126,005 |
Margin borrowing facilities | |||
Debt Instrument [Line Items] | |||
Debt | $ 73,629 | $ 65,818 | |
[1] | As of December 31, 2019 and 2018, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.1 million and $3.3 million, respectively. | ||
[2] | As of December 31, 2019 and 2018, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $3.9 million and $4.0 million, respectively. |
Outstanding Debt (Parenthetical
Outstanding Debt (Parenthetical) (Detail) | Apr. 25, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
7.75% Subordinated Notes due 2045 | |||
Debt Instrument [Line Items] | |||
Subordinated Notes percentage | 7.75% | 7.75% | |
Subordinated Notes due date | 2045 | 2045 | 2045 |
7.875% Subordinated Notes due 2047 | |||
Debt Instrument [Line Items] | |||
Subordinated Notes percentage | 7.875% | 7.875% | |
Subordinated Notes due date | 2047 | 2047 | 2047 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 25, 2018 | Mar. 23, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 30, 2017 | Aug. 12, 2015 | |
Debt Instrument [Line Items] | ||||||||
Debt | $ 296,640 | $ 288,565 | ||||||
Interest expense | 20,022 | 19,694 | $ 16,906 | |||||
Promissory notes | $ 230,000 | |||||||
7.75% Subordinated Notes due 2045 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt | [1] | $ 96,864 | $ 96,742 | |||||
Stated interest rate | 7.75% | 7.75% | ||||||
Interest expense | $ 7,900 | $ 7,900 | 7,900 | |||||
Debt instrument, face amount | $ 100,000 | |||||||
Debt instrument, interest rate terms | Payable quarterly in arrears on February 15, May 15, August 15, and November 15 of each year | |||||||
Debt instrument, maturity date | Aug. 15, 2045 | |||||||
Debt instrument, redemption description | The Company has the right to redeem the 2045 Notes in $25 increments, in whole or in part, on and after August 15, 2020, or on any interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the 2045 Notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption. | |||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | |||||||
Deferred issuance costs | $ 3,700 | |||||||
Subordinated Notes due date | 2045 | 2045 | 2045 | |||||
7.875% Subordinated Notes due 2047 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt | [2] | $ 126,147 | $ 126,005 | |||||
Stated interest rate | 7.875% | 7.875% | ||||||
Interest expense | $ 10,400 | $ 10,400 | 8,000 | |||||
Debt instrument, face amount | $ 120,000 | $ 130,000 | ||||||
Debt instrument, interest rate terms | Payable quarterly in arrears on January 15, April 15, July 15, and October 15 of each year | |||||||
Debt instrument, maturity date | Apr. 15, 2047 | |||||||
Debt instrument, redemption description | The Company has the right to redeem the 2047 Notes in $25 increments, in whole or in part, on and after April 15, 2022, or on any interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the 2047 Notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption. | |||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | |||||||
Deferred issuance costs | $ 4,200 | |||||||
Number of days granted to underwriters option to purchase | 30 days | |||||||
Additional aggregate principal amount purchased pursuant to over-allotment option granted to the underwriters | $ 18,000 | |||||||
Subordinated Notes due date | 2047 | 2047 | 2047 | |||||
7.875% Subordinated Notes due 2047 | Over-Allotment Option | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 10,000 | |||||||
Margin borrowing facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt | $ 73,629 | $ 65,818 | ||||||
Stated interest rate | 1.90% | 2.70% | ||||||
Collateral deposited to support borrowing | $ 88,200 | |||||||
Debt Securities, Available-for-sale, Restriction Type [Extensible List] | us-gaap:CollateralPledgedMember | |||||||
Interest expense | $ 1,800 | $ 1,400 | $ 1,000 | |||||
[1] | As of December 31, 2019 and 2018, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.1 million and $3.3 million, respectively. | |||||||
[2] | As of December 31, 2019 and 2018, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $3.9 million and $4.0 million, respectively. |
Amounts Recorded for Margin Bor
Amounts Recorded for Margin Borrowing Facilities and Subordinated Notes (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Net Carrying Amount | $ 296,640 | $ 288,565 | |
7.75% Subordinated Notes due 2045 | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 100,000 | 100,000 | |
Unamortized Debt Issuance Costs | (3,136) | (3,258) | |
Net Carrying Amount | [1] | 96,864 | 96,742 |
7.875% Subordinated Notes due 2047 | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 130,000 | 130,000 | |
Unamortized Debt Issuance Costs | (3,853) | (3,995) | |
Net Carrying Amount | [2] | 126,147 | 126,005 |
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 230,000 | 230,000 | |
Unamortized Debt Issuance Costs | (6,989) | (7,253) | |
Net Carrying Amount | $ 223,011 | $ 222,747 | |
[1] | As of December 31, 2019 and 2018, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.1 million and $3.3 million, respectively. | ||
[2] | As of December 31, 2019 and 2018, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $3.9 million and $4.0 million, respectively. |
Amounts Recorded for Margin B_2
Amounts Recorded for Margin Borrowing Facilities and Subordinated Notes (Parenthetical) (Detail) | Apr. 25, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
7.75% Subordinated Notes due 2045 | |||
Debt Instrument [Line Items] | |||
Subordinated Notes percentage | 7.75% | 7.75% | |
Subordinated Notes due date | 2045 | 2045 | 2045 |
7.875% Subordinated Notes due 2047 | |||
Debt Instrument [Line Items] | |||
Subordinated Notes percentage | 7.875% | 7.875% | |
Subordinated Notes due date | 2047 | 2047 | 2047 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Lessee Lease Description [Line Item] | ||||
Operating lease, existence of option to terminate [true false] | true | |||
Operating lease, existence of option to extend [true false] | true | |||
Operating lease, existence of option to retract [true false] | true | |||
Rental expense under operating leases, net of sub-lease income | $ 3,500,000 | $ 3,500,000 | ||
Rental expense under operating leases, sub-lease income | $ 0 | $ 0 | $ 0 | |
Maximum | ||||
Lessee Lease Description [Line Item] | ||||
Operating lease, remaining lease term | 11 years | |||
Minimum [Member] | ||||
Lessee Lease Description [Line Item] | ||||
Operating lease, remaining lease term | 5 months | |||
ASU 2016-02 | Maximum | ||||
Lessee Lease Description [Line Item] | ||||
Cumulative effect adjustment on retained earnings | $ 100,000 |
Components of Lease Expenses (D
Components of Lease Expenses (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expenses | $ 3,293 |
Short-term lease expenses | 7 |
Total lease expenses | $ 3,300 |
Schedule of Supplemental Cash F
Schedule of Supplemental Cash Flow Information Related To Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of liabilities: | |
Operating leases | $ 2,530 |
Right-of-use assets obtained in exchange for new lease obligations: | |
Operating leases | $ 13,858 |
Schedule of Supplemental Balanc
Schedule of Supplemental Balance Sheet Information Related to Leases (Detail) $ in Thousands | Dec. 31, 2019USD ($) | |
Assets: | ||
Operating lease assets | $ 22,761 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | |
Liabilities: | ||
Operating lease liabilities | $ 23,539 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | |
Weighted-average remaining lease term | ||
Operating leases | 10 years 2 months 12 days | |
Weighted-average discount rate | ||
Operating leases | 2.70% | [1] |
[1] | Represents the Company’s incremental borrowing rate |
Future Minimum Lease Payments U
Future Minimum Lease Payments Under Non-cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 1,931 |
2021 | 2,779 |
2022 | 2,659 |
2023 | 2,702 |
2024 | 2,746 |
Thereafter | 14,142 |
Total future minimum lease payments | 26,959 |
Less: amount representing interest | 3,420 |
Present value of minimum lease payments | $ 23,539 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | Dec. 31, 2019USD ($)Stockholder$ / shares | Dec. 29, 2017USD ($)$ / sharesshares | Dec. 31, 2017$ / shares | Dec. 31, 2019USD ($)Stockholder$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares |
Equity [Line Items] | |||||||
Share Premium | $ 442,403,000 | $ 442,403,000 | $ 438,182,000 | ||||
Dividend declared, per share | $ / shares | $ 1 | $ 1 | $ 0 | ||||
Dividend payable, per share | $ / shares | $ 0.25 | $ 0.25 | $ 0.25 | ||||
Accrued dividends | $ 300,000 | $ 300,000 | $ 200,000 | ||||
Fox Paine Funds | |||||||
Equity [Line Items] | |||||||
Stock repurchase program, number of shares purchased | shares | 3,397,031 | ||||||
Stock repurchase program, value of shares purchased | $ 83,000,000 | ||||||
Stock repurchase program, per share purchased | $ / shares | $ 24.44 | ||||||
Redemption Agreement | Fox Paine Funds | |||||||
Equity [Line Items] | |||||||
Ordinary shares agreed to redeem, shares | shares | 8,260,870 | ||||||
Additional Redemption Agreement | Fox Paine Funds | |||||||
Equity [Line Items] | |||||||
Ordinary shares agreed to redeem, shares | shares | 3,397,031 | ||||||
Redemption agreement expiration date | Dec. 31, 2019 | ||||||
Ordinary shares agreed to redeem | $ 78,100,000 | ||||||
Ordinary shares agreed to redeem, percentage of annual increase | 3.00% | ||||||
Ordinary Shares A | |||||||
Equity [Line Items] | |||||||
Shares repurchased or redeemed | shares | 27,028 | 45,233 | |||||
Voting rights | one | ||||||
Number of shareholders | Stockholder | 218 | 218 | |||||
Ordinary Shares A | Treasury Shares | |||||||
Equity [Line Items] | |||||||
Stock repurchase program, number of shares purchased | shares | 27,028 | 45,233 | 29,551 | ||||
Stock repurchase program, value of shares purchased | $ 947,000 | $ 1,813,000 | $ 1,159,000 | ||||
Ordinary Shares B | |||||||
Equity [Line Items] | |||||||
Shares repurchased or redeemed | shares | 0 | 0 | |||||
Voting rights | ten | ||||||
Number of shareholders | Stockholder | 4 | 4 | |||||
Quarterly Dividend | |||||||
Equity [Line Items] | |||||||
Dividend declared, per share | $ / shares | $ 0.25 | ||||||
Annual Dividend | |||||||
Equity [Line Items] | |||||||
Dividend declared, per share | $ / shares | $ 1 | ||||||
Global Indemnity Limited | |||||||
Equity [Line Items] | |||||||
Distributable reserves | $ 270,800,000 | $ 270,800,000 | |||||
Share Premium | 442,400,000 | 442,400,000 | |||||
Revaluation reserve | 17,600,000 | ||||||
Global Indemnity Limited | Maximum | |||||||
Equity [Line Items] | |||||||
Maximum dividends and distributions allowable under law | $ 730,800,000 | $ 730,800,000 |
Schedule of Dividends Declared
Schedule of Dividends Declared (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 08, 2019 | Oct. 02, 2019 | Sep. 15, 2019 | Jun. 28, 2019 | Jun. 02, 2019 | Mar. 29, 2019 | Feb. 10, 2019 | Dec. 31, 2018 | Dec. 02, 2018 | Oct. 01, 2018 | Sep. 16, 2018 | Jun. 29, 2018 | Jun. 03, 2018 | Mar. 29, 2018 | Mar. 04, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Dividends Payable [Line Items] | |||||||||||||||||||
Approval Date | Dec. 8, 2019 | Sep. 15, 2019 | Jun. 2, 2019 | Feb. 10, 2019 | Dec. 2, 2018 | Sep. 16, 2018 | Jun. 3, 2018 | Mar. 4, 2018 | |||||||||||
Record Date | Dec. 24, 2019 | Sep. 26, 2019 | Jun. 21, 2019 | Mar. 22, 2019 | Dec. 24, 2018 | Sep. 27, 2018 | Jun. 22, 2018 | Mar. 21, 2018 | |||||||||||
Payment Date | Dec. 31, 2019 | Oct. 2, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 31, 2018 | Oct. 1, 2018 | Jun. 29, 2018 | Mar. 29, 2018 | |||||||||||
Payment of dividends | $ 3,532 | $ 3,528 | $ 3,525 | $ 3,521 | $ 3,506 | $ 3,504 | $ 3,502 | $ 3,499 | $ 14,374 | $ 14,208 | |||||||||
Unvested Shares, Net of Forfeitures | |||||||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||||||
Approval Date | Various | Various | |||||||||||||||||
Record Date | Various | Various | |||||||||||||||||
Payment Date | Various | Various | |||||||||||||||||
Payment of dividends | [1] | $ 268 | $ 197 | ||||||||||||||||
[1] | Represents dividends declared on unvested shares, net of forfeitures. |
Information with Respect to A O
Information with Respect to A Ordinary Shares that were Surrendered, Repurchased or Redeemed (Detail) - Ordinary Shares A - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | 27,028 | 45,233 | |
Average Price Paid Per Share | $ 35.07 | $ 40.07 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | $ 0 | |
January 1-31, 2019 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1],[2] | 7,945 | |
Average Price Paid Per Share | [1] | $ 36.23 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1] | $ 0 | |
February 1-28, 2019 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1],[2] | 19,083 | |
Average Price Paid Per Share | [1] | $ 34.59 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1] | $ 0 | |
January 1-31, 2018 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1],[2] | 26,639 | |
Average Price Paid Per Share | [1] | $ 42.02 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1] | $ 0 | |
March 1-31, 2018 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1],[2] | 18,594 | |
Average Price Paid Per Share | [1] | $ 37.27 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1] | $ 0 | |
[1] | Based on settlement date. | ||
[2] | Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | Apr. 25, 2018 | Dec. 29, 2017 | May 31, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
7.75% Subordinated Notes due 2045 | |||||||
Related Party Transaction [Line Items] | |||||||
Subordinated Notes percentage | 7.75% | 7.75% | |||||
Subordinated Notes due date | 2045 | 2045 | 2045 | ||||
7.875% Subordinated Notes due 2047 | |||||||
Related Party Transaction [Line Items] | |||||||
Subordinated Notes percentage | 7.875% | 7.875% | |||||
Subordinated Notes due date | 2047 | 2047 | 2047 | ||||
Fox Paine Funds | |||||||
Related Party Transaction [Line Items] | |||||||
Company's total voting power | 80.30% | ||||||
Stock repurchase program, number of shares purchased | 3,397,031 | ||||||
FM Entities | |||||||
Related Party Transaction [Line Items] | |||||||
Company's total voting power | 2.10% | ||||||
Fox Paine Entities | |||||||
Related Party Transaction [Line Items] | |||||||
Minimum voting power required to nominate Directors | 25.00% | ||||||
Fox Paine and Company | |||||||
Related Party Transaction [Line Items] | |||||||
Management fees | $ 2.1 | $ 2.1 | $ 2.2 | ||||
Prepaid management fees | $ 1.4 | $ 1.4 | |||||
Advisory services fees estimated | $ 2 | ||||||
Fox Paine and Company | Co-Obligor Transaction | |||||||
Related Party Transaction [Line Items] | |||||||
Advisory services fees estimated | $ 12.5 | ||||||
Fox Paine and Company | Share Redemption Transaction | |||||||
Related Party Transaction [Line Items] | |||||||
Advisory services fees estimated | $ 11 | ||||||
Stock repurchase program, number of shares purchased | 3,397,031 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2014 |
Commitments and Contingencies [Line Items] | ||||
Commitment to purchase alternative investment | $ 10,000 | $ 50,000 | $ 50,000 | |
Future Funding Commitments | 31,720 | $ 34,714 | ||
European Non-Performing Loan Fund, LP | ||||
Commitments and Contingencies [Line Items] | ||||
Funded commitment amount | 35,800 | |||
Distressed Debt Fund, LP | ||||
Commitments and Contingencies [Line Items] | ||||
Funded commitment amount | 33,000 | |||
Mortgage Loans and Other Real-Estate Related Investments | ||||
Commitments and Contingencies [Line Items] | ||||
Funded commitment amount | 9,500 | |||
Unfunded Commitments | European Non-Performing Loan Fund, LP | ||||
Commitments and Contingencies [Line Items] | ||||
Future Funding Commitments | 14,200 | |||
Unfunded Commitments | Distressed Debt Fund, LP | ||||
Commitments and Contingencies [Line Items] | ||||
Future Funding Commitments | 17,000 | |||
Unfunded Commitments | Mortgage Loans and Other Real-Estate Related Investments | ||||
Commitments and Contingencies [Line Items] | ||||
Future Funding Commitments | $ 500 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Additional Information (Detail) - USD ($) | Mar. 06, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options awarded | 0 | 300,000 | 0 | 300,000 | |||||
Strike price per share | $ 0 | $ 50 | |||||||
Compensation expense, options | $ 1,100,000 | $ 300,000 | $ (400,000) | ||||||
Proceed from exercise of options | $ 0 | $ 0 | 0 | ||||||
Fair value of share | $ 29.63 | $ 29.63 | |||||||
Weighted average fair value of options granted | $ 3.79 | ||||||||
Stock options forfeited | 0 | 100,000 | |||||||
Key Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options, vested and expected to vest | 27,117 | 27,117 | |||||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation expense, restricted stock | $ 2,800,000 | $ 3,100,000 | $ 4,100,000 | ||||||
Unrecognized compensation expense for non-vested restricted stock | $ 2,500,000 | $ 2,500,000 | |||||||
Weighted average life of non-vested restricted stock | 1 year 10 months 24 days | ||||||||
Number of shares granted | 110,599 | 70,424 | 49,624 | 1,580,009 | 1,810,656 | ||||
Weighted average fair value per share | $ 30.93 | $ 38.85 | $ 39.42 | ||||||
Shares vested | 150,395 | 166,117 | 116,111 | ||||||
Restricted Stock | Key Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted | 43,680 | 38,778 | 22,503 | 1,066,615 | 1,171,576 | ||||
Weighted average fair value per share | $ 34.23 | $ 40.57 | $ 38.21 | ||||||
Shares vested | 9,063 | 11,843 | |||||||
Stock options, vested and expected to vest | 7,500 | 7,500 | |||||||
Restricted Stock | Key Employees | Share-based Payment Arrangement, Tranche One | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Jan. 1, 2020 | Jan. 1, 2019 | Jan. 1, 2018 | ||||||
Percentage of shares vested on each anniversary of the grant date | 16.50% | 16.50% | 16.50% | ||||||
Restricted Stock | Key Employees | Share-based Compensation Award, Tranche 2 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Jan. 1, 2021 | Jan. 1, 2020 | Jan. 1, 2019 | ||||||
Percentage of shares vested on each anniversary of the grant date | 16.50% | 16.50% | 16.50% | ||||||
Restricted Stock | Key Employees | Share-based Compensation Award, Tranche 3 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Jan. 1, 2022 | Jan. 1, 2021 | Jan. 1, 2020 | ||||||
Percentage of shares vested on each anniversary of the grant date | 17.00% | 17.00% | 17.00% | ||||||
Restricted Stock | Key Employees | Vesting Schedule Two | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Mar. 15, 2022 | Mar. 15, 2021 | Mar. 15, 2020 | ||||||
Percentage of shares vested on each anniversary of the grant date | 100.00% | 100.00% | 100.00% | ||||||
Percentage of stock award subject to vesting | 50.00% | 50.00% | 50.00% | ||||||
Restricted Stock | Key Employees | Share-based Compensation Award, Tranche 4 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Aug. 26, 2020 | ||||||||
Percentage of shares vested on each anniversary of the grant date | 20.00% | ||||||||
Restricted Stock | Key Employees | Share-based Compensation Award, Tranche 5 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Aug. 26, 2021 | ||||||||
Percentage of shares vested on each anniversary of the grant date | 20.00% | ||||||||
Restricted Stock | Key Employees | Share-based Compensation Award, Tranche 6 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Aug. 26, 2022 | ||||||||
Percentage of shares vested on each anniversary of the grant date | 20.00% | ||||||||
Restricted Stock | Key Employees | Share-based Compensation Award, Tranche 7 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Aug. 26, 2023 | ||||||||
Percentage of shares vested on each anniversary of the grant date | 20.00% | ||||||||
Restricted Stock | Key Employees | Share-based Compensation Award, Tranche 8 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Aug. 26, 2024 | ||||||||
Percentage of shares vested on each anniversary of the grant date | 20.00% | ||||||||
Restricted Stock | Non Employee Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted | 66,919 | 31,646 | 27,121 | ||||||
Weighted average fair value per share | $ 28.77 | $ 36.74 | $ 40.42 | ||||||
Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation expense, restricted stock | $ 400,000 | $ 0 | $ 0 | ||||||
Unrecognized compensation expense for non-vested restricted stock | $ 4,000,000 | $ 4,000,000 | |||||||
Weighted average life of non-vested restricted stock | 2 years 9 months 18 days | ||||||||
Number of shares granted | 175,498 | 0 | 175,498 | ||||||
Weighted average fair value per share | $ 30.18 | ||||||||
Shares vested | 0 | ||||||||
Restricted Stock Units | Key Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted | 175,498 | 0 | 175,498 | ||||||
Weighted average fair value per share | $ 30.18 | ||||||||
Restricted Stock Units | Key Employees | Share-based Payment Arrangement, Tranche One | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Jun. 18, 2021 | ||||||||
Percentage of shares vested on each anniversary of the grant date | 10.00% | ||||||||
Restricted Stock Units | Key Employees | Share-based Compensation Award, Tranche 2 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Jun. 18, 2022 | ||||||||
Percentage of shares vested on each anniversary of the grant date | 20.00% | ||||||||
Restricted Stock Units | Key Employees | Share-based Compensation Award, Tranche 3 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Jun. 18, 2023 | ||||||||
Percentage of shares vested on each anniversary of the grant date | 30.00% | ||||||||
Restricted Stock Units | Key Employees | Share-based Compensation Award, Tranche 4 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Jun. 18, 2024 | ||||||||
Percentage of shares vested on each anniversary of the grant date | 40.00% | ||||||||
Stock Options | Chief Executive Officer | Share-based Compensation Award, Tranche 2 | Employment Agreement | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options awarded | 300,000 | ||||||||
Stock Options | Chief Executive Officer | Vesting Schedule Two | Employment Agreement | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Dec. 31, 2019 | ||||||||
Stock options, vested | 100,000 | ||||||||
Stock Options | Chief Executive Officer | Vesting Schedule One | Employment Agreement | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Dec. 31, 2018 | ||||||||
Stock options, vested and expected to vest | 100,000 | ||||||||
Stock options forfeited | 100,000 | ||||||||
Stock Options | Chief Executive Officer | Vesting Schedule Two and Three | Employment Agreement | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options, vested and expected to vest | 200,000 | ||||||||
Stock Options | Chief Executive Officer | Vesting Schedule Three | Employment Agreement | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Dec. 31, 2020 | ||||||||
Stock options, vested and expected to vest | 100,000 | ||||||||
Time Based Option Award | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options awarded | 0 | 300,000 | |||||||
Stock options forfeited | 0 | ||||||||
Time Based Option Award | Chief Executive Officer | Share-based Compensation Award, Tranche 3 | Employment Agreement | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Strike price per share | $ 50 | ||||||||
Number of shares granted | 300,000 | ||||||||
Time Based Option Award | Chief Executive Officer | Vesting Schedule Two | Employment Agreement | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Dec. 31, 2019 | ||||||||
Stock options, vested and expected to vest | 100,000 | 100,000 | |||||||
Time Based Option Award | Chief Executive Officer | Vesting Schedule One | Employment Agreement | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Dec. 31, 2018 | ||||||||
Stock options, vested and expected to vest | 100,000 | 100,000 | |||||||
Time Based Option Award | Chief Executive Officer | Vesting Schedule Three | Employment Agreement | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting date | Dec. 31, 2020 | ||||||||
Stock options, vested and expected to vest | 100,000 | 100,000 | |||||||
Expiration date | Dec. 31, 2027 | ||||||||
Scenario Forecast | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected compensation expense, options | $ 1,300,000 | ||||||||
2018 Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Maximum number of shares authorized | 2,500,000 | 2,500,000 |
Summary of Award Activity for S
Summary of Award Activity for Stock Options Granted and Weighted Average Exercise Price Per Share (Detail) - $ / shares | Mar. 06, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2014 | |||
Options | ||||||||
Options outstanding, beginning balance | 800,000 | 600,000 | 600,000 | |||||
Options issued | 0 | 300,000 | 0 | 300,000 | ||||
Options forfeited | 0 | (100,000) | ||||||
Options exercised | [1] | 0 | ||||||
Options expired | 0 | |||||||
Options purchased by the Company | 0 | |||||||
Options outstanding, ending balance | 200,000 | 800,000 | 800,000 | 600,000 | ||||
Options exercisable at December 31, 2019 | 600,000 | |||||||
Weighted Average Exercise Price Per Share | ||||||||
Weighted average exercise price per share, beginning balance | $ 35.06 | $ 25.13 | $ 25.13 | |||||
Options issued | 0 | 50 | ||||||
Options forfeited | 0 | 38.43 | ||||||
Options exercised | [1] | 0 | ||||||
Options expired | 0 | |||||||
Options purchased by the Company | 0 | |||||||
Weighted average exercise price per share, ending balance | 35.06 | $ 35.06 | $ 25.13 | |||||
Options exercisable at December 31, 2019 | $ 32.01 | |||||||
Time Based Option Award | ||||||||
Options | ||||||||
Options outstanding, beginning balance | 600,000 | 300,000 | 300,000 | |||||
Options issued | 0 | 300,000 | ||||||
Options forfeited | 0 | |||||||
Options exercised | 0 | |||||||
Options expired | 0 | |||||||
Options purchased by the Company | 0 | |||||||
Options outstanding, ending balance | 600,000 | 600,000 | 300,000 | |||||
Options exercisable at December 31, 2019 | 500,000 | |||||||
Performance Based Stock Options | ||||||||
Options | ||||||||
Options outstanding, beginning balance | 200,000 | 300,000 | [2] | 300,000 | ||||
Options issued | 0 | |||||||
Options forfeited | 0 | (100,000) | ||||||
Options exercised | 0 | |||||||
Options expired | 0 | |||||||
Options purchased by the Company | 0 | |||||||
Options outstanding, ending balance | 200,000 | 200,000 | 300,000 | [2] | ||||
Options exercisable at December 31, 2019 | 100,000 | |||||||
[1] | The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. | |||||||
[2] | In 2014, 300,000 options were granted. On March 6, 2018, the existing vesting provisions of these options were eliminated and replaced with new vesting provisions related to return on equity targets for 2018, 2019, and 2020 (“Bonus Years”). 100,000 options were related to the 2018 Bonus Year. Return on equity targets for the 2018 bonus year were not met and therefore, these 100,000 options have been forfeited. 200,000 options remain outstanding. 100,000 options, which were related to return on equity targets for the 2019 bonus year, vested on December 31, 2019. These options are subject to remeasurement of 2019 bonus year results after the third full calendar year following the bonus year. 100,000 options are related to return on equity targets for the 2020 bonus year. These options are subject to remeasurement of 2020 bonus year results after the third full calendar year following the bonus year. |
Summary of Award Activity for_2
Summary of Award Activity for Stock Options Granted and Weighted Average Exercise Price Per Share (Parenthetical) (Detail) - shares | Mar. 06, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2014 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options awarded | 0 | 300,000 | 0 | 300,000 | ||
Stock options forfeited | 0 | 100,000 | ||||
Options outstanding | 200,000 | 800,000 | 800,000 | 600,000 | 600,000 | |
2018 Bonus Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options, vested and expected to vest | 100,000 | |||||
Stock options forfeited | 100,000 | |||||
2019 Bonus Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options, vested | 100,000 | |||||
2020 Bonus Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options, vested and expected to vest | 100,000 |
Option Intrinsic Values (Detail
Option Intrinsic Values (Detail) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 06, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||
Outstanding | 800,000 | 800,000 | 200,000 | 600,000 | 600,000 | |
Exercisable | 600,000 | |||||
Exercised | [1] | 0 | ||||
Outstanding | $ 35.06 | $ 35.06 | $ 25.13 | $ 25.13 | ||
Exercisable | 32.01 | |||||
Exercised | [1] | $ 0 | ||||
Outstanding | $ 3,500,000 | |||||
Exercisable | 3,500,000 | |||||
Exercised | [1] | $ 0 | ||||
[1] | The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. |
Options Exercisable (Detail)
Options Exercisable (Detail) | Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Price | $ / shares | $ 32.01 | |
Number of options exercisable | shares | 600,000 | |
Exercise Price 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Price | $ / shares | $ 17.87 | |
Number of options exercisable | shares | 300,000 | |
Exercise Price 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Price | $ / shares | $ 38.43 | [1] |
Number of options exercisable | shares | 100,000 | [1] |
Exercise Price 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Price | $ / shares | $ 50 | |
Number of options exercisable | shares | 200,000 | |
[1] | the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. |
Significant Assumptions Used To
Significant Assumptions Used To Estimate Fair Value of Stock Options Granted Using Black Scholes Option Pricing Model (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Dividend yield | 2.00% |
Expected volatility | 22.47% |
Risk-free interest rate | 2.00% |
Expected option life | 3 years 3 months 18 days |
Summary of Range of Exercise Pr
Summary of Range of Exercise Prices of Options Outstanding (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options outstanding | 800,000 | 800,000 | 600,000 | |
Exercise Price Range One | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Ranges of Exercise Prices, minimum | $ 17.87 | $ 17.87 | $ 17.87 | |
Ranges of Exercise Prices, maximum | $ 19.99 | $ 19.99 | $ 19.99 | |
Options outstanding | 300,000 | 300,000 | 300,000 | |
Weighted Average Per Share Exercise Price | $ 17.87 | $ 17.87 | $ 17.87 | |
Weighted Average Remaining Life | 1 year 8 months 12 days | 2 years 8 months 12 days | 3 years 8 months 12 days | |
Exercise Price Range Two | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Ranges of Exercise Prices, minimum | $ 30 | $ 30 | $ 30 | |
Ranges of Exercise Prices, maximum | $ 38.43 | $ 38.43 | $ 37.70 | |
Options outstanding | [1] | 200,000 | 200,000 | 300,000 |
Weighted Average Per Share Exercise Price | $ 38.43 | $ 38.43 | $ 32.38 | |
Weighted Average Remaining Life | 5 years | 6 years | 6 years 1 month 6 days | |
Exercise Price Range Three | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Ranges of Exercise Prices, minimum | $ 50 | $ 50 | ||
Ranges of Exercise Prices, maximum | $ 59.99 | $ 59.99 | ||
Options outstanding | 300,000 | 300,000 | ||
Weighted Average Per Share Exercise Price | $ 50 | $ 50 | ||
Weighted Average Remaining Life | 8 years | 9 years | ||
[1] | the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. |
Summary of Restricted Stock Gra
Summary of Restricted Stock Grants Since Inception (Detail) - Restricted Stock - shares | 12 Months Ended | 168 Months Ended | 204 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Awards | 110,599 | 70,424 | 49,624 | 1,580,009 | 1,810,656 |
Key Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Awards | 43,680 | 38,778 | 22,503 | 1,066,615 | 1,171,576 |
Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Awards | 66,919 | 31,646 | 27,121 | 513,394 | 639,080 |
Summary of Restricted Stock Uni
Summary of Restricted Stock Unit Grants Since Inception (Detail) - Restricted Stock Units - shares | 12 Months Ended | 192 Months Ended | 204 Months Ended |
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Awards | 175,498 | 0 | 175,498 |
Key Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Awards | 175,498 | 0 | 175,498 |
Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Awards | 0 | 0 | 0 |
Summary of Non-Vested Restricte
Summary of Non-Vested Restricted Shares Activity (Detail) - Restricted Stock - $ / shares | 12 Months Ended | 168 Months Ended | 204 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested restricted shares/units, beginning balance | 113,864 | 212,812 | 299,598 | ||
Shares/Units issued | 110,599 | 70,424 | 49,624 | 1,580,009 | 1,810,656 |
Shares/Units vested | (150,395) | (166,117) | (116,111) | ||
Shares/Units forfeited | (11,828) | (3,255) | (20,299) | ||
Non-vested restricted shares/units, ending balance | 62,240 | 113,864 | 212,812 | 299,598 | 62,240 |
Weighted Average Price Per Share | |||||
Weighted average price per share, beginning balance | $ 33.61 | $ 29.67 | $ 28.02 | ||
Shares/Units issued | 30.93 | 38.85 | 39.42 | ||
Shares/Units vested | 29.86 | 30.88 | 29.75 | ||
Shares/Units forfeited | 38.42 | 28.91 | 28.63 | ||
Weighted average price per share, ending balance | $ 37 | $ 33.61 | $ 29.67 | $ 28.02 | $ 37 |
Summary of Non-Vested Restric_2
Summary of Non-Vested Restricted Units Activity (Detail) - Restricted Stock Units - $ / shares | 12 Months Ended | 192 Months Ended | 204 Months Ended |
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested restricted shares/units, beginning balance | 0 | ||
Shares/Units issued | 175,498 | 0 | 175,498 |
Shares/Units vested | 0 | ||
Shares/Units forfeited | 0 | ||
Non-vested restricted shares/units, ending balance | 175,498 | 0 | 175,498 |
Weighted Average Price Per Share | |||
Weighted average price per share, beginning balance | $ 0 | ||
Shares/Units issued | 30.18 | ||
Shares/Units vested | 0 | ||
Shares/Units forfeited | 0 | ||
Weighted average price per share, ending balance | $ 30.18 | $ 0 | $ 30.18 |
401(k) Plan - Additional Inform
401(k) Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employer's matching contribution percentage on first 6% contributed by employee to a defined contribution plan | 100.00% | ||
Maximum percentage of employee's earnings that the company may contribute to the defined contribution plan | 6.00% | ||
Defined benefit plan expense | $ 1.9 | $ 1.9 | $ 1.9 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Earnings Per Share [Abstract] | |||||||||||||||
Net income (loss) | $ 29,031 | $ 6,721 | $ 14,663 | $ 19,600 | $ (73,317) | $ 3,728 | $ 7,192 | $ 5,701 | $ 70,015 | $ (56,696) | $ (9,551) | ||||
Weighted average shares outstanding - basic | 14,191,756 | 14,088,883 | 17,308,663 | ||||||||||||
Net income (loss) per share | [1] | $ 4.93 | $ (4.02) | $ (0.55) | |||||||||||
Weighted average shares outstanding – diluted | [2] | 14,334,706 | 14,088,883 | 17,308,663 | |||||||||||
Net income (loss) per share | $ 2.02 | $ 0.47 | $ 1.02 | $ 1.37 | $ (5.20) | $ 0.26 | $ 0.50 | $ 0.40 | $ 4.88 | [1] | $ (4.02) | [1] | $ (0.55) | [1] | |
[1] | For the years ended December 31, 2018 and 2017, “weighted average shares outstanding - basic” was used to calculate “diluted earnings per share” due to a net loss for the period. | ||||||||||||||
[2] | For the years ended December 31, 2018 and 2017, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss for the period. |
Reconciliation of Weighted Aver
Reconciliation of Weighted Average Shares for Basic and Diluted Earnings Per Share (Detail) - shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | ||||
Weighted average shares for basic earnings per share | 14,191,756 | 14,088,883 | 17,308,663 | |
Weighted average shares for diluted earnings per share | [1] | 14,334,706 | 14,088,883 | 17,308,663 |
Restricted Stock | ||||
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | ||||
Non-vested restricted stock, units and options | 20,492 | 0 | 0 | |
Restricted Stock Units | ||||
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | ||||
Non-vested restricted stock, units and options | 3,392 | 0 | 0 | |
Stock Options | ||||
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | ||||
Non-vested restricted stock, units and options | 119,066 | 0 | 0 | |
[1] | For the years ended December 31, 2018 and 2017, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss for the period. |
Earning Per Share - Additional
Earning Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Incremental shares included in calculation of diluted EPS | 14,325,276 | 17,680,209 | |
Stock Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares excluded from calculation of diluted earnings per share | 500,000 | 500,000 | 0 |
Restricted Stock Diluted | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Non-vested restricted stock and options | 76,568 | 157,441 | |
Stock Options Diluted | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Non-vested restricted stock and options | 159,825 | 214,105 |
Statutory Financial Informati_3
Statutory Financial Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
United National Insurance Companies | |
Statutory Accounting Practices [Line Items] | |
Maximum amount of dividends that could be paid in 2019 under applicable laws and regulations without regulatory approval | $ 13,200,000 |
Dividends | 0 |
American Reliable Insurance Company | |
Statutory Accounting Practices [Line Items] | |
Maximum amount of dividends that could be paid in 2019 under applicable laws and regulations without regulatory approval | 9,000,000 |
Dividends | 0 |
Penn- America Insurance Companies | |
Statutory Accounting Practices [Line Items] | |
Maximum amount of dividends that could be paid in 2019 under applicable laws and regulations without regulatory approval | 7,400,000 |
Maximum amount of dividends payable under applicable laws and regulations without regulatory approval which would be distributed to wholly owned parent company | 2,400,000 |
Dividends | 0 |
Global Indemnity Reinsurance | |
Statutory Accounting Practices [Line Items] | |
Maximum amount of dividends that could be paid in 2019 under applicable laws and regulations without regulatory approval | $ 198,800,000 |
Maximum reduction in statutory capital allowed without regulatory approval | 15.00% |
Maximum reduction in statutory capital and surplus allowed without regulatory approval | 25.00% |
Information for Company's Unite
Information for Company's United States Insurance Companies, Net of Intercompany Eliminations as Determined in Accordance With Sap (Detail) - U.S. Insurance Companies - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus, as of end of period | $ 263,793 | $ 225,645 | $ 274,586 |
Statutory net income (loss) | $ 39,971 | $ (52,036) | $ (19,019) |
Information for United States I
Information for United States Insurance Companies & Global Indemnity Reinsurance, Net of Intercompany Eliminations, as Determined in Accordance With SAP and Bermuda (Detail) - Global Indemnity Reinsurance - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus, as of end of period | $ 885,763 | $ 835,620 | $ 908,433 |
Statutory net income | $ 34,086 | $ (3,972) | $ 29,647 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable business segments managed | 4 |
Personal Lines | |
Segment Reporting Information [Line Items] | |
Number of reportable business segments managed | 2 |
Summary of Business Segment Inf
Summary of Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Revenues: | |||||||||||||||
Gross written premiums | $ 636,861 | $ 547,897 | $ 516,334 | ||||||||||||
Net written premiums | 562,089 | 472,547 | 450,180 | ||||||||||||
Net earned premiums | $ 141,660 | $ 133,312 | $ 128,201 | $ 122,089 | $ 125,328 | $ 120,528 | $ 113,917 | $ 108,002 | 525,262 | 467,775 | 438,034 | ||||
Other income (loss) | 1,816 | 1,728 | 6,582 | ||||||||||||
Total revenues | 527,078 | 469,503 | 444,616 | ||||||||||||
Losses and Expenses: | |||||||||||||||
Net losses and loss adjustment expenses | 73,423 | 73,583 | 70,075 | 58,321 | 139,199 | 80,493 | 58,861 | 56,072 | 275,402 | 334,625 | 269,212 | ||||
Acquisition costs and other underwriting expenses | 54,760 | 53,366 | 50,534 | 49,743 | 49,582 | 48,680 | 47,513 | 45,003 | 208,403 | 190,778 | 183,733 | ||||
Income (loss) from segments | 43,273 | (55,900) | (8,329) | ||||||||||||
Unallocated Items: | |||||||||||||||
Net investment income | 9,659 | 11,348 | 13,826 | 7,219 | 12,234 | 11,750 | 10,954 | 11,404 | 42,052 | 46,342 | 39,323 | ||||
Net realized investment gains (losses) | 24,052 | (2,690) | 3,590 | 10,390 | (24,740) | 5,319 | 2,830 | (316) | 35,342 | (16,907) | 1,576 | ||||
Corporate and other operating expenses | (18,888) | (29,766) | (25,714) | ||||||||||||
Interest expense | (20,022) | (19,694) | (16,906) | ||||||||||||
Income (loss) before income taxes | 35,610 | 6,404 | 15,849 | 23,894 | (86,602) | 436 | 5,793 | 4,448 | 81,757 | (75,925) | (10,050) | ||||
Income tax expense (benefit) | (11,742) | 19,229 | 499 | ||||||||||||
Net income (loss) | 29,031 | $ 6,721 | $ 14,663 | $ 19,600 | (73,317) | $ 3,728 | $ 7,192 | $ 5,701 | 70,015 | (56,696) | (9,551) | ||||
Total assets | 2,075,885 | 1,960,266 | 2,075,885 | 1,960,266 | 2,001,669 | ||||||||||
Segment Assets | |||||||||||||||
Unallocated Items: | |||||||||||||||
Total assets | 1,401,740 | 1,433,693 | 1,401,740 | 1,433,693 | 1,360,279 | ||||||||||
Corporate Assets | |||||||||||||||
Unallocated Items: | |||||||||||||||
Total assets | 674,145 | 526,573 | 674,145 | 526,573 | 641,390 | ||||||||||
Commercial Specialty | |||||||||||||||
Revenues: | |||||||||||||||
Gross written premiums | [1] | 297,332 | 249,948 | 212,670 | |||||||||||
Net written premiums | [1] | 258,719 | 226,827 | 186,448 | |||||||||||
Net earned premiums | [1] | 237,758 | 218,357 | 178,798 | |||||||||||
Other income (loss) | [1] | 0 | 78 | ||||||||||||
Total revenues | [1] | 237,758 | 218,357 | 178,876 | |||||||||||
Losses and Expenses: | |||||||||||||||
Net losses and loss adjustment expenses | [1] | 108,911 | 114,476 | 62,834 | |||||||||||
Acquisition costs and other underwriting expenses | [1] | 96,475 | 87,371 | [2] | 75,990 | [3] | |||||||||
Income (loss) from segments | [1] | 32,372 | 16,510 | 40,052 | |||||||||||
Unallocated Items: | |||||||||||||||
Net investment income | [1] | 0 | |||||||||||||
Net realized investment gains (losses) | [1] | 0 | |||||||||||||
Corporate and other operating expenses | [1] | 0 | |||||||||||||
Interest expense | [1] | 0 | |||||||||||||
Income tax expense (benefit) | [1] | 0 | |||||||||||||
Net income (loss) | [1] | 0 | |||||||||||||
Total assets | [1] | 0 | 0 | ||||||||||||
Commercial Specialty | Segment Assets | |||||||||||||||
Unallocated Items: | |||||||||||||||
Total assets | [1] | 713,010 | 712,632 | 713,010 | 712,632 | 688,250 | |||||||||
Commercial Specialty | Corporate Assets | |||||||||||||||
Unallocated Items: | |||||||||||||||
Total assets | [1] | 0 | 0 | ||||||||||||
Specialty Property | |||||||||||||||
Revenues: | |||||||||||||||
Gross written premiums | [1] | 163,503 | [4] | 170,168 | [5] | 173,780 | [6] | ||||||||
Net written premiums | [1] | 140,670 | 127,470 | 144,271 | |||||||||||
Net earned premiums | [1] | 140,232 | 128,768 | 149,786 | |||||||||||
Other income (loss) | [1] | 1,820 | 1,782 | 6,013 | |||||||||||
Total revenues | [1] | 142,052 | 130,550 | 155,799 | |||||||||||
Losses and Expenses: | |||||||||||||||
Net losses and loss adjustment expenses | [1] | 75,426 | 122,709 | 112,055 | |||||||||||
Acquisition costs and other underwriting expenses | [1] | 58,768 | 55,760 | [7] | 63,477 | [8] | |||||||||
Income (loss) from segments | [1] | 7,858 | (47,919) | (19,733) | |||||||||||
Unallocated Items: | |||||||||||||||
Net investment income | [1] | 0 | |||||||||||||
Net realized investment gains (losses) | [1] | 0 | |||||||||||||
Corporate and other operating expenses | [1] | 0 | |||||||||||||
Interest expense | [1] | 0 | |||||||||||||
Income tax expense (benefit) | [1] | 0 | |||||||||||||
Net income (loss) | [1] | 0 | |||||||||||||
Total assets | [1] | 0 | 0 | ||||||||||||
Specialty Property | Segment Assets | |||||||||||||||
Unallocated Items: | |||||||||||||||
Total assets | [1] | 226,388 | 270,083 | 226,388 | 270,083 | 249,596 | |||||||||
Specialty Property | Corporate Assets | |||||||||||||||
Unallocated Items: | |||||||||||||||
Total assets | [1] | 0 | 0 | ||||||||||||
Farm, Ranch & Stable | |||||||||||||||
Revenues: | |||||||||||||||
Gross written premiums | [1] | 87,745 | 79,738 | 75,997 | |||||||||||
Net written premiums | [1] | 74,416 | 70,217 | 65,528 | |||||||||||
Net earned premiums | [1] | 71,312 | 69,248 | 66,197 | |||||||||||
Other income (loss) | [1] | 132 | 156 | 275 | |||||||||||
Total revenues | [1] | 71,444 | 69,404 | 66,472 | |||||||||||
Losses and Expenses: | |||||||||||||||
Net losses and loss adjustment expenses | [1] | 42,700 | 41,180 | 53,743 | |||||||||||
Acquisition costs and other underwriting expenses | [1] | 29,551 | 29,801 | [9] | 29,636 | [10] | |||||||||
Income (loss) from segments | [1] | (807) | (1,577) | (16,907) | |||||||||||
Unallocated Items: | |||||||||||||||
Net investment income | [1] | 0 | |||||||||||||
Net realized investment gains (losses) | [1] | 0 | |||||||||||||
Corporate and other operating expenses | [1] | 0 | |||||||||||||
Interest expense | [1] | 0 | |||||||||||||
Income tax expense (benefit) | [1] | 0 | |||||||||||||
Net income (loss) | [1] | 0 | |||||||||||||
Total assets | [1] | 0 | 0 | ||||||||||||
Farm, Ranch & Stable | Segment Assets | |||||||||||||||
Unallocated Items: | |||||||||||||||
Total assets | [1] | 136,891 | 134,056 | 136,891 | 134,056 | 140,785 | |||||||||
Farm, Ranch & Stable | Corporate Assets | |||||||||||||||
Unallocated Items: | |||||||||||||||
Total assets | [1] | 0 | 0 | ||||||||||||
Reinsurance Operations | |||||||||||||||
Revenues: | |||||||||||||||
Gross written premiums | [11] | 88,281 | 48,043 | 53,887 | |||||||||||
Net written premiums | [11] | 88,284 | 48,033 | 53,933 | |||||||||||
Net earned premiums | [11] | 75,960 | 51,402 | 43,253 | |||||||||||
Other income (loss) | [11] | (136) | (210) | 216 | |||||||||||
Total revenues | [11] | 75,824 | 51,192 | 43,469 | |||||||||||
Losses and Expenses: | |||||||||||||||
Net losses and loss adjustment expenses | [11] | 48,365 | 56,260 | 40,580 | |||||||||||
Acquisition costs and other underwriting expenses | [11] | 23,609 | 17,846 | 14,630 | |||||||||||
Income (loss) from segments | [11] | 3,850 | (22,914) | (11,741) | |||||||||||
Unallocated Items: | |||||||||||||||
Net investment income | [11] | 0 | |||||||||||||
Net realized investment gains (losses) | [11] | 0 | |||||||||||||
Corporate and other operating expenses | [11] | 0 | |||||||||||||
Interest expense | [11] | 0 | |||||||||||||
Income tax expense (benefit) | [11] | 0 | |||||||||||||
Net income (loss) | [11] | 0 | |||||||||||||
Total assets | [11] | 0 | 0 | ||||||||||||
Reinsurance Operations | Segment Assets | |||||||||||||||
Unallocated Items: | |||||||||||||||
Total assets | [11] | 325,451 | $ 316,922 | 325,451 | $ 316,922 | $ 281,648 | |||||||||
Reinsurance Operations | Corporate Assets | |||||||||||||||
Unallocated Items: | |||||||||||||||
Total assets | [11] | $ 0 | $ 0 | ||||||||||||
[1] | Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018. | ||||||||||||||
[2] | Includes federal excise tax of $386 relating to cessions from Commercial Specialty to Reinsurance Operations. | ||||||||||||||
[3] | Includes federal excise tax of $714 relating to cessions from Commercial Specialty to Reinsurance Operations. | ||||||||||||||
[4] | Includes ($273) of business written by American Reliable that was ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. | ||||||||||||||
[5] | Includes ($2,062) of business written by American Reliable that was ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. | ||||||||||||||
[6] | Includes ($1,338) of business written by American Reliable that was ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. | ||||||||||||||
[7] | Includes federal excise tax of $313 relating to cessions from Specialty Property to Reinsurance Operations. | ||||||||||||||
[8] | Includes federal excise tax of $597 relating to cessions from Specialty Property to Reinsurance Operations. | ||||||||||||||
[9] | Includes federal excise tax of $145 relating to cessions from Farm, Ranch, & Stable to Reinsurance Operations. | ||||||||||||||
[10] | Includes federal excise tax of 265 relating to cessions from Farm, Ranch, & Stable to Reinsurance Operations. | ||||||||||||||
[11] | External business only, excluding business assumed from affiliates. |
Summary of Business Segment I_2
Summary of Business Segment Information (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Specialty Property | |||
Segment Reporting Information [Line Items] | |||
Federal excise tax relating to cessions from Insurance Operations to Reinsurance Operations | $ 313 | $ 597 | |
Commercial Specialty | |||
Segment Reporting Information [Line Items] | |||
Federal excise tax relating to cessions from Insurance Operations to Reinsurance Operations | 386 | 714 | |
Farm, Ranch & Stable | |||
Segment Reporting Information [Line Items] | |||
Federal excise tax relating to cessions from Insurance Operations to Reinsurance Operations | 145 | 265 | |
American Reliable Insurance Company | Specialty Property | |||
Segment Reporting Information [Line Items] | |||
Ceded premiums written | $ (273) | $ (2,062) | $ (1,338) |
Quota share agreement percentage | 100.00% | 100.00% | 100.00% |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Global Indemnity Group, LLC | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage in subsidiary | 100.00% |
Schedule of Condensed Consolida
Schedule of Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
ASSETS | |||||
Total investments | $ 1,563,542 | $ 1,410,655 | |||
Cash and cash equivalents | 44,271 | 99,497 | $ 74,414 | $ 75,110 | |
Investments in subsidiaries | 0 | 0 | |||
Due from subsidiaries and affiliates | 0 | 0 | |||
Notes receivable – affiliate | 0 | 0 | |||
Interest receivable – affiliate | 0 | 0 | |||
Premiums receivable, net | 118,035 | 87,679 | |||
Reinsurance receivables, net | 83,938 | 114,418 | |||
Funds held by ceding insurers | 48,580 | 49,206 | |||
Federal income taxes receivable | 10,989 | 10,866 | |||
Deferred federal income taxes | 31,077 | 48,589 | |||
Deferred acquisition costs | 70,677 | 61,676 | |||
Intangible assets | 21,491 | 22,020 | |||
Goodwill | 6,521 | 6,521 | |||
Prepaid reinsurance premiums | 16,716 | 20,594 | |||
Receivable for securities sold | 0 | 15 | |||
Other assets | 60,048 | 28,530 | |||
Total assets | 2,075,885 | 1,960,266 | 2,001,669 | ||
Liabilities: | |||||
Unpaid losses and loss adjustment expenses | 630,181 | 680,031 | 634,664 | 651,042 | |
Unearned premiums | 314,861 | 281,912 | |||
Ceded balances payable | 20,404 | 14,994 | |||
Payable for securities purchased | 850 | 0 | |||
Contingent commissions | 11,928 | 10,636 | |||
Debt | 296,640 | 288,565 | |||
Notes payable – affiliates | 0 | 0 | |||
Accrued interest payable – affiliates | 0 | 0 | |||
Other liabilities | 74,212 | 55,069 | |||
Total liabilities | 1,349,076 | 1,331,207 | |||
Shareholders’ equity | |||||
Total shareholders’ equity | 726,809 | 629,059 | 718,394 | ||
Total liabilities and shareholders’ equity | 2,075,885 | 1,960,266 | |||
Global Indemnity Limited (Parent co-obligor) | Reportable Legal Entities | |||||
ASSETS | |||||
Total investments | 44,468 | 55,377 | |||
Cash and cash equivalents | 977 | 2,221 | 11,089 | 91 | |
Investments in subsidiaries | 1,218,491 | 1,105,032 | |||
Due from subsidiaries and affiliates | (3,612) | 584 | |||
Notes receivable – affiliate | 0 | 0 | |||
Interest receivable – affiliate | 0 | 0 | |||
Premiums receivable, net | 0 | 0 | |||
Reinsurance receivables, net | 0 | 0 | |||
Funds held by ceding insurers | 0 | 0 | |||
Federal income taxes receivable | 0 | 0 | |||
Deferred federal income taxes | 0 | 0 | |||
Deferred acquisition costs | 0 | 0 | |||
Intangible assets | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Prepaid reinsurance premiums | 0 | 0 | |||
Receivable for securities sold | 0 | ||||
Other assets | 9,394 | 8,461 | |||
Total assets | 1,269,718 | 1,171,675 | |||
Liabilities: | |||||
Unpaid losses and loss adjustment expenses | 0 | 0 | |||
Unearned premiums | 0 | 0 | |||
Ceded balances payable | 0 | 0 | |||
Payable for securities purchased | 0 | ||||
Contingent commissions | 0 | 0 | |||
Debt | 0 | 0 | |||
Notes payable – affiliates | 520,498 | 520,498 | |||
Accrued interest payable – affiliates | 20,343 | 19,499 | |||
Other liabilities | 2,068 | 2,619 | |||
Total liabilities | 542,909 | 542,616 | |||
Shareholders’ equity | |||||
Total shareholders’ equity | 726,809 | 629,059 | |||
Total liabilities and shareholders’ equity | 1,269,718 | 1,171,675 | |||
Global Indemnity Group, LLC (Subsidiary co-obligor) | Reportable Legal Entities | |||||
ASSETS | |||||
Total investments | 257,317 | 233,479 | |||
Cash and cash equivalents | 2,663 | 26,039 | 7,749 | 5,536 | |
Investments in subsidiaries | 355,777 | 296,357 | |||
Due from subsidiaries and affiliates | (3,965) | (2,133) | |||
Notes receivable – affiliate | 80,049 | 80,049 | |||
Interest receivable – affiliate | 5,014 | 3,869 | |||
Premiums receivable, net | 0 | 0 | |||
Reinsurance receivables, net | 0 | 0 | |||
Funds held by ceding insurers | 0 | 0 | |||
Federal income taxes receivable | 14,197 | 4,631 | |||
Deferred federal income taxes | 31,833 | 44,481 | |||
Deferred acquisition costs | 0 | 0 | |||
Intangible assets | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Prepaid reinsurance premiums | 0 | 0 | |||
Receivable for securities sold | 0 | ||||
Other assets | 12,622 | 5,085 | |||
Total assets | 755,507 | 691,857 | |||
Liabilities: | |||||
Unpaid losses and loss adjustment expenses | 0 | 0 | |||
Unearned premiums | 0 | 0 | |||
Ceded balances payable | 0 | 0 | |||
Payable for securities purchased | 0 | ||||
Contingent commissions | 0 | 0 | |||
Debt | 303,629 | 295,818 | |||
Notes payable – affiliates | 0 | 402,310 | |||
Accrued interest payable – affiliates | 0 | 0 | |||
Other liabilities | 17,600 | 13,651 | |||
Total liabilities | 321,229 | 711,779 | |||
Shareholders’ equity | |||||
Total shareholders’ equity | 434,278 | (19,922) | |||
Total liabilities and shareholders’ equity | 755,507 | 691,857 | |||
Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) | |||||
ASSETS | |||||
Total investments | [1] | 1,261,757 | 1,121,799 | ||
Cash and cash equivalents | [1] | 40,631 | 71,237 | $ 55,576 | $ 69,483 |
Investments in subsidiaries | [1] | 434,278 | (19,922) | ||
Due from subsidiaries and affiliates | [1] | 7,577 | 1,549 | ||
Notes receivable – affiliate | [1] | 445,498 | 847,808 | ||
Interest receivable – affiliate | [1] | 17,258 | 17,425 | ||
Premiums receivable, net | [1] | 118,035 | 87,679 | ||
Reinsurance receivables, net | [1] | 83,938 | 114,418 | ||
Funds held by ceding insurers | [1] | 48,580 | 49,206 | ||
Federal income taxes receivable | [1] | (3,208) | 6,235 | ||
Deferred federal income taxes | [1] | (756) | 4,108 | ||
Deferred acquisition costs | [1] | 70,677 | 61,676 | ||
Intangible assets | [1] | 21,491 | 22,020 | ||
Goodwill | [1] | 6,521 | 6,521 | ||
Prepaid reinsurance premiums | [1] | 16,716 | 20,594 | ||
Receivable for securities sold | [1] | 15 | |||
Other assets | [1] | 45,021 | 22,237 | ||
Total assets | [1] | 2,614,014 | 2,434,605 | ||
Liabilities: | |||||
Unpaid losses and loss adjustment expenses | [1] | 630,181 | 680,031 | ||
Unearned premiums | [1] | 314,861 | 281,912 | ||
Ceded balances payable | [1] | 20,404 | 14,994 | ||
Payable for securities purchased | [1] | 850 | |||
Contingent commissions | [1] | 11,928 | 10,636 | ||
Debt | [1] | 0 | 0 | ||
Notes payable – affiliates | [1] | 5,049 | 5,049 | ||
Accrued interest payable – affiliates | [1] | 1,929 | 1,795 | ||
Other liabilities | [1] | 54,544 | 38,799 | ||
Total liabilities | [1] | 1,039,746 | 1,033,216 | ||
Shareholders’ equity | |||||
Total shareholders’ equity | [1] | 1,574,268 | 1,401,389 | ||
Total liabilities and shareholders’ equity | [1] | 2,614,014 | 2,434,605 | ||
Consolidation Adjustments | |||||
ASSETS | |||||
Total investments | [2] | 0 | 0 | ||
Cash and cash equivalents | [2] | 0 | 0 | ||
Investments in subsidiaries | [2] | (2,008,546) | (1,381,467) | ||
Due from subsidiaries and affiliates | [2] | 0 | 0 | ||
Notes receivable – affiliate | [2] | (525,547) | (927,857) | ||
Interest receivable – affiliate | [2] | (22,272) | (21,294) | ||
Premiums receivable, net | [2] | 0 | 0 | ||
Reinsurance receivables, net | [2] | 0 | 0 | ||
Funds held by ceding insurers | [2] | 0 | 0 | ||
Federal income taxes receivable | [2] | 0 | 0 | ||
Deferred federal income taxes | [2] | 0 | 0 | ||
Deferred acquisition costs | [2] | 0 | 0 | ||
Intangible assets | [2] | 0 | 0 | ||
Goodwill | [2] | 0 | 0 | ||
Prepaid reinsurance premiums | [2] | 0 | 0 | ||
Receivable for securities sold | [2] | 0 | |||
Other assets | [2] | (6,989) | (7,253) | ||
Total assets | [2] | (2,563,354) | (2,337,871) | ||
Liabilities: | |||||
Unpaid losses and loss adjustment expenses | [2] | 0 | 0 | ||
Unearned premiums | [2] | 0 | 0 | ||
Ceded balances payable | [2] | 0 | 0 | ||
Payable for securities purchased | [2] | 0 | |||
Contingent commissions | [2] | 0 | 0 | ||
Debt | [2] | (6,989) | (7,253) | ||
Notes payable – affiliates | [2] | (525,547) | (927,857) | ||
Accrued interest payable – affiliates | [2] | (22,272) | (21,294) | ||
Other liabilities | [2] | 0 | 0 | ||
Total liabilities | [2] | (554,808) | (956,404) | ||
Shareholders’ equity | |||||
Total shareholders’ equity | [2] | (2,008,546) | (1,381,467) | ||
Total liabilities and shareholders’ equity | [2] | $ (2,563,354) | $ (2,337,871) | ||
[1] | Includes all other subsidiaries of Global Indemnity Limited and eliminations | ||||
[2] | Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments |
Schedule of Condensed Consoli_2
Schedule of Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues: | ||||||||||||
Net earned premiums | $ 141,660 | $ 133,312 | $ 128,201 | $ 122,089 | $ 125,328 | $ 120,528 | $ 113,917 | $ 108,002 | $ 525,262 | $ 467,775 | $ 438,034 | |
Net investment income | 9,659 | 11,348 | 13,826 | 7,219 | 12,234 | 11,750 | 10,954 | 11,404 | 42,052 | 46,342 | 39,323 | |
Net realized investment gains(losses) | 24,052 | (2,690) | 3,590 | 10,390 | (24,740) | 5,319 | 2,830 | (316) | 35,342 | (16,907) | 1,576 | |
Other income (loss) | 1,816 | 1,728 | 6,582 | |||||||||
Total revenues | 604,472 | 498,938 | 485,515 | |||||||||
Losses and Expenses: | ||||||||||||
Net losses and loss adjustment expenses | 73,423 | 73,583 | 70,075 | 58,321 | 139,199 | 80,493 | 58,861 | 56,072 | 275,402 | 334,625 | 269,212 | |
Acquisition costs and other underwriting expenses | 54,760 | 53,366 | 50,534 | 49,743 | 49,582 | 48,680 | 47,513 | 45,003 | 208,403 | 190,778 | 183,733 | |
Corporate and other operating expenses | 18,888 | 29,766 | 25,714 | |||||||||
Interest expense | 20,022 | 19,694 | 16,906 | |||||||||
Income (loss) before income taxes | 35,610 | 6,404 | 15,849 | 23,894 | (86,602) | 436 | 5,793 | 4,448 | 81,757 | (75,925) | (10,050) | |
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | |||||||||
Income (loss) before income taxes | 81,757 | (75,925) | (10,050) | |||||||||
Income tax expense (benefit) | 11,742 | (19,229) | (499) | |||||||||
Net income (loss) | $ 29,031 | $ 6,721 | $ 14,663 | $ 19,600 | $ (73,317) | $ 3,728 | $ 7,192 | $ 5,701 | 70,015 | (56,696) | (9,551) | |
Global Indemnity Limited (Parent co-obligor) | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Net earned premiums | 0 | 0 | 0 | |||||||||
Net investment income | 2,295 | 658 | 361 | |||||||||
Net realized investment gains(losses) | 574 | (154) | (368) | |||||||||
Other income (loss) | 0 | 0 | 6 | |||||||||
Total revenues | 2,869 | 504 | (1) | |||||||||
Losses and Expenses: | ||||||||||||
Net losses and loss adjustment expenses | 0 | 0 | 0 | |||||||||
Acquisition costs and other underwriting expenses | 0 | 0 | 0 | |||||||||
Corporate and other operating expenses | 6,692 | 11,317 | 16,807 | |||||||||
Interest expense | 1,108 | 12,994 | 18,349 | |||||||||
Income (loss) before income taxes | (4,931) | (23,807) | (35,157) | |||||||||
Equity in net income (loss) of subsidiaries | 74,946 | (32,889) | 25,606 | |||||||||
Income (loss) before income taxes | 70,015 | (56,696) | (9,551) | |||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||
Net income (loss) | 70,015 | (56,696) | (9,551) | |||||||||
Global Indemnity Group, LLC (Subsidiary co-obligor) | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Net earned premiums | 0 | 0 | 0 | |||||||||
Net investment income | 6,563 | 9,208 | 8,943 | |||||||||
Net realized investment gains(losses) | 28,596 | (15,284) | 877 | |||||||||
Other income (loss) | 30 | 20 | 4,170 | |||||||||
Total revenues | 35,189 | (6,056) | 13,990 | |||||||||
Losses and Expenses: | ||||||||||||
Net losses and loss adjustment expenses | 0 | 0 | 0 | |||||||||
Acquisition costs and other underwriting expenses | 0 | 0 | 0 | |||||||||
Corporate and other operating expenses | 10,254 | 17,047 | (11,595) | |||||||||
Interest expense | 19,743 | 43,187 | 42,332 | |||||||||
Income (loss) before income taxes | 5,192 | (66,290) | (16,747) | |||||||||
Equity in net income (loss) of subsidiaries | 28,401 | (16,694) | (19,018) | |||||||||
Income (loss) before income taxes | 33,593 | (82,984) | (35,765) | |||||||||
Income tax expense (benefit) | 1,526 | (9,975) | 12,830 | |||||||||
Net income (loss) | 32,067 | (73,009) | (48,595) | |||||||||
Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) | ||||||||||||
Revenues: | ||||||||||||
Net earned premiums | [1] | 525,262 | 467,775 | 438,034 | ||||||||
Net investment income | [1] | 34,339 | 73,317 | 74,264 | ||||||||
Net realized investment gains(losses) | [1] | 6,172 | (1,469) | 1,067 | ||||||||
Other income (loss) | [1] | 1,786 | 1,708 | 2,406 | ||||||||
Total revenues | [1] | 567,559 | 541,331 | 515,771 | ||||||||
Losses and Expenses: | ||||||||||||
Net losses and loss adjustment expenses | [1] | 275,402 | 334,625 | 269,212 | ||||||||
Acquisition costs and other underwriting expenses | [1] | 208,403 | 190,778 | 183,733 | ||||||||
Corporate and other operating expenses | [1] | 1,942 | 1,402 | 20,502 | ||||||||
Interest expense | [1] | 316 | 354 | 332 | ||||||||
Income (loss) before income taxes | [1] | 81,496 | 14,172 | 41,992 | ||||||||
Equity in net income (loss) of subsidiaries | [1] | 32,067 | (73,009) | (48,595) | ||||||||
Income (loss) before income taxes | [1] | 113,563 | (58,837) | (6,603) | ||||||||
Income tax expense (benefit) | [1] | 10,216 | (9,254) | (13,329) | ||||||||
Net income (loss) | [1] | 103,347 | (49,583) | 6,726 | ||||||||
Consolidation Adjustments | ||||||||||||
Revenues: | ||||||||||||
Net earned premiums | [2] | 0 | 0 | 0 | ||||||||
Net investment income | [2] | (1,145) | (36,841) | (44,245) | ||||||||
Net realized investment gains(losses) | [2] | 0 | 0 | 0 | ||||||||
Other income (loss) | [2] | 0 | 0 | 0 | ||||||||
Total revenues | [2] | (1,145) | (36,841) | (44,245) | ||||||||
Losses and Expenses: | ||||||||||||
Net losses and loss adjustment expenses | [2] | 0 | 0 | 0 | ||||||||
Acquisition costs and other underwriting expenses | [2] | 0 | 0 | 0 | ||||||||
Corporate and other operating expenses | [2] | 0 | 0 | 0 | ||||||||
Interest expense | [2] | (1,145) | (36,841) | (44,107) | ||||||||
Income (loss) before income taxes | [2] | 0 | 0 | (138) | ||||||||
Equity in net income (loss) of subsidiaries | [2] | (135,414) | 122,592 | 42,007 | ||||||||
Income (loss) before income taxes | [2] | (135,414) | 122,592 | 41,869 | ||||||||
Income tax expense (benefit) | [2] | 0 | 0 | 0 | ||||||||
Net income (loss) | [2] | $ (135,414) | $ 122,592 | $ 41,869 | ||||||||
[1] | Includes all other subsidiaries of Global Indemnity Limited and eliminations | |||||||||||
[2] | Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments |
Schedule of Condensed Consoli_3
Schedule of Condensed Consolidating Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net income (loss) | $ 29,031 | $ 6,721 | $ 14,663 | $ 19,600 | $ (73,317) | $ 3,728 | $ 7,192 | $ 5,701 | $ 70,015 | $ (56,696) | $ (9,551) | |
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized holding gains (losses) | 43,980 | (20,748) | 9,677 | |||||||||
Equity in other comprehensive income (loss) of unconsolidated subsidiaries | 0 | 0 | 0 | |||||||||
Portion of other than temporary impairment losses recognized in other comprehensive income (loss) | (5) | (3) | (3) | |||||||||
Reclassification adjustment for (gains) losses included in net income (loss) | (5,437) | 2,450 | (848) | |||||||||
Unrealized foreign currency translation gains (losses) | 302 | (1,885) | 775 | |||||||||
Other comprehensive income (loss), net of tax | 38,840 | (20,186) | 9,601 | |||||||||
Comprehensive income (loss), net of tax | 108,855 | (76,882) | 50 | |||||||||
Global Indemnity Limited (Parent co-obligor) | Reportable Legal Entities | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net income (loss) | 70,015 | (56,696) | (9,551) | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized holding gains (losses) | 872 | (499) | (216) | |||||||||
Equity in other comprehensive income (loss) of unconsolidated subsidiaries | 38,520 | (19,841) | 9,449 | |||||||||
Portion of other than temporary impairment losses recognized in other comprehensive income (loss) | 0 | 0 | 0 | |||||||||
Reclassification adjustment for (gains) losses included in net income (loss) | (552) | 154 | 368 | |||||||||
Unrealized foreign currency translation gains (losses) | 0 | 0 | 0 | |||||||||
Other comprehensive income (loss), net of tax | 38,840 | (20,186) | 9,601 | |||||||||
Comprehensive income (loss), net of tax | 108,855 | (76,882) | 50 | |||||||||
Global Indemnity Group, LLC (Subsidiary co-obligor) | Reportable Legal Entities | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net income (loss) | 32,067 | (73,009) | (48,595) | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized holding gains (losses) | 1,588 | (2,917) | 9,735 | |||||||||
Equity in other comprehensive income (loss) of unconsolidated subsidiaries | 19,734 | (8,230) | (385) | |||||||||
Portion of other than temporary impairment losses recognized in other comprehensive income (loss) | 0 | 0 | 0 | |||||||||
Reclassification adjustment for (gains) losses included in net income (loss) | 225 | 1,027 | (619) | |||||||||
Unrealized foreign currency translation gains (losses) | 0 | 0 | 224 | |||||||||
Other comprehensive income (loss), net of tax | 21,547 | (10,120) | 8,955 | |||||||||
Comprehensive income (loss), net of tax | 53,614 | (83,129) | (39,640) | |||||||||
Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net income (loss) | [1] | 103,347 | (49,583) | 6,726 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized holding gains (losses) | [1] | 41,520 | (17,332) | 187 | ||||||||
Equity in other comprehensive income (loss) of unconsolidated subsidiaries | [1] | 21,547 | (10,120) | 8,955 | ||||||||
Portion of other than temporary impairment losses recognized in other comprehensive income (loss) | [1] | (5) | (3) | (3) | ||||||||
Reclassification adjustment for (gains) losses included in net income (loss) | [1] | (5,110) | 1,269 | (735) | ||||||||
Unrealized foreign currency translation gains (losses) | [1] | 302 | (1,885) | 551 | ||||||||
Other comprehensive income (loss), net of tax | [1] | 58,254 | (28,071) | 8,955 | ||||||||
Comprehensive income (loss), net of tax | [1] | 161,601 | (77,654) | 15,681 | ||||||||
Consolidation Adjustments | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net income (loss) | [2] | (135,414) | 122,592 | 41,869 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized holding gains (losses) | [2] | 0 | 0 | (29) | ||||||||
Equity in other comprehensive income (loss) of unconsolidated subsidiaries | [2] | (79,801) | 38,191 | (18,019) | ||||||||
Portion of other than temporary impairment losses recognized in other comprehensive income (loss) | [2] | 0 | 0 | 0 | ||||||||
Reclassification adjustment for (gains) losses included in net income (loss) | [2] | 0 | 0 | 138 | ||||||||
Unrealized foreign currency translation gains (losses) | [2] | 0 | 0 | 0 | ||||||||
Other comprehensive income (loss), net of tax | [2] | (79,801) | 38,191 | (17,910) | ||||||||
Comprehensive income (loss), net of tax | [2] | $ (215,215) | $ 160,783 | $ 23,959 | ||||||||
[1] | Includes all other subsidiaries of Global Indemnity Limited and eliminations | |||||||||||
[2] | Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments |
Schedule of Condensed Consoli_4
Schedule of Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities: | ||||
Net cash provided by (used for) operating activities | $ 32,376 | $ 42,069 | $ (18,909) | |
Cash flows from investing activities: | ||||
Proceeds from sale of fixed maturities | 977,321 | 293,348 | 918,439 | |
Proceeds from sale of equity securities | 260,891 | 35,639 | 32,218 | |
Proceeds from maturity of fixed maturities | 180,546 | 55,182 | 145,475 | |
Proceeds from other invested assets | 16,757 | 43,377 | 12,299 | |
Amount received (paid) in connection with derivatives | (7,654) | 4,392 | 1,464 | |
Purchases of fixed maturities | (1,129,567) | (370,536) | (1,078,199) | |
Purchases of equity securities | (365,255) | (36,258) | (36,647) | |
Purchases of other invested assets | (13,283) | (16,309) | (24,000) | |
Acquisition of business | 0 | (3,515) | 0 | |
Net cash provided by (used for) investing activities | (80,244) | 5,320 | (28,951) | |
Cash flows from financing activities: | ||||
Net borrowings (repayments) under margin borrowing facility | 7,811 | (6,412) | 5,584 | |
Redemption of ordinary shares | 0 | 0 | (83,015) | |
Proceeds from issuance of subordinated notes | 0 | 0 | 130,000 | |
Debt issuance cost | 0 | 0 | (4,246) | |
Dividends paid to shareholders | (14,222) | (14,027) | 0 | |
Capital contribution | 0 | 0 | ||
Purchase of A ordinary shares | (947) | (1,867) | (1,159) | |
Net cash provided by (used for) financing activities | (7,358) | (22,306) | 47,164 | |
Proceeds / (issuance) of notes to affiliates | 0 | 0 | ||
Debt restructuring | 0 | |||
Dividends from subsidiaries | 0 | 0 | ||
Net change in cash and cash equivalents | (55,226) | 25,083 | (696) | |
Cash and cash equivalents at beginning of period | 99,497 | 74,414 | 75,110 | |
Cash and cash equivalents at end of period | 44,271 | 99,497 | 74,414 | |
Global Indemnity Limited (Parent co-obligor) | Reportable Legal Entities | ||||
Cash flows from operating activities: | ||||
Net cash provided by (used for) operating activities | 2,632 | (20,178) | (24,927) | |
Cash flows from investing activities: | ||||
Proceeds from sale of fixed maturities | 48,393 | 32,980 | 12,389 | |
Proceeds from sale of equity securities | 10,900 | 0 | 0 | |
Proceeds from maturity of fixed maturities | 0 | 5,431 | 10,000 | |
Proceeds from other invested assets | 4,363 | 1,500 | 0 | |
Amount received (paid) in connection with derivatives | 0 | 0 | 0 | |
Purchases of fixed maturities | (10,548) | (33,327) | (32,044) | |
Purchases of equity securities | (41,815) | 0 | 0 | |
Purchases of other invested assets | 0 | 0 | 0 | |
Acquisition of business | 0 | |||
Net cash provided by (used for) investing activities | 11,293 | 6,584 | (9,655) | |
Cash flows from financing activities: | ||||
Net borrowings (repayments) under margin borrowing facility | 0 | 0 | 0 | |
Redemption of ordinary shares | (83,015) | |||
Proceeds from issuance of subordinated notes | 130,000 | |||
Debt issuance cost | (4,246) | |||
Dividends paid to shareholders | (14,222) | (14,027) | ||
Capital contribution | 0 | (96,000) | ||
Purchase of A ordinary shares | (947) | (1,867) | (1,159) | |
Net cash provided by (used for) financing activities | (15,169) | 4,726 | 45,580 | |
Proceeds / (issuance) of notes to affiliates | 230,000 | 0 | ||
Debt restructuring | (230,000) | |||
Dividends from subsidiaries | 20,620 | 100,000 | ||
Net change in cash and cash equivalents | (1,244) | (8,868) | 10,998 | |
Cash and cash equivalents at beginning of period | 2,221 | 11,089 | 91 | |
Cash and cash equivalents at end of period | 977 | 2,221 | 11,089 | |
Global Indemnity Group, LLC (Subsidiary co-obligor) | Reportable Legal Entities | ||||
Cash flows from operating activities: | ||||
Net cash provided by (used for) operating activities | (23,295) | (35,207) | (37,165) | |
Cash flows from investing activities: | ||||
Proceeds from sale of fixed maturities | 101,584 | 71,900 | 54,082 | |
Proceeds from sale of equity securities | 249,991 | 35,639 | 32,218 | |
Proceeds from maturity of fixed maturities | 0 | 7,600 | 78,925 | |
Proceeds from other invested assets | 12,394 | 34,499 | 4,139 | |
Amount received (paid) in connection with derivatives | (7,654) | 4,392 | 1,464 | |
Purchases of fixed maturities | (26,205) | (40,858) | (254,152) | |
Purchases of equity securities | (311,711) | (36,258) | (36,647) | |
Purchases of other invested assets | (13,283) | (15,800) | (22,500) | |
Acquisition of business | (3,515) | |||
Net cash provided by (used for) investing activities | 5,116 | 57,599 | (142,471) | |
Cash flows from financing activities: | ||||
Net borrowings (repayments) under margin borrowing facility | 7,811 | (6,412) | 5,584 | |
Redemption of ordinary shares | 0 | |||
Proceeds from issuance of subordinated notes | 0 | |||
Debt issuance cost | 0 | |||
Dividends paid to shareholders | 0 | 0 | ||
Capital contribution | (13,008) | 0 | ||
Purchase of A ordinary shares | 0 | 0 | 0 | |
Net cash provided by (used for) financing activities | (5,197) | (4,102) | 181,849 | |
Proceeds / (issuance) of notes to affiliates | (227,690) | 120,000 | ||
Debt restructuring | 230,000 | |||
Dividends from subsidiaries | 0 | 56,265 | ||
Net change in cash and cash equivalents | (23,376) | 18,290 | 2,213 | |
Cash and cash equivalents at beginning of period | 26,039 | 7,749 | 5,536 | |
Cash and cash equivalents at end of period | 2,663 | 26,039 | 7,749 | |
Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) | ||||
Cash flows from operating activities: | ||||
Net cash provided by (used for) operating activities | [1] | 53,039 | 97,454 | 43,183 |
Cash flows from investing activities: | ||||
Proceeds from sale of fixed maturities | [1] | 827,344 | 188,468 | 851,968 |
Proceeds from sale of equity securities | [1] | 0 | 0 | 0 |
Proceeds from maturity of fixed maturities | [1] | 180,546 | 42,151 | 56,550 |
Proceeds from other invested assets | [1] | 0 | 7,378 | 8,160 |
Amount received (paid) in connection with derivatives | [1] | 0 | 0 | 0 |
Purchases of fixed maturities | [1] | (1,092,814) | (296,351) | (792,003) |
Purchases of equity securities | [1] | (11,729) | 0 | 0 |
Purchases of other invested assets | [1] | 0 | (509) | (1,500) |
Acquisition of business | [1] | 0 | ||
Net cash provided by (used for) investing activities | [1] | (96,653) | (58,863) | 123,175 |
Cash flows from financing activities: | ||||
Net borrowings (repayments) under margin borrowing facility | [1] | 0 | 0 | 0 |
Redemption of ordinary shares | [1] | 0 | ||
Proceeds from issuance of subordinated notes | [1] | 0 | ||
Debt issuance cost | [1] | 0 | ||
Dividends paid to shareholders | [1] | 0 | 0 | |
Capital contribution | [1] | 13,008 | 96,000 | |
Purchase of A ordinary shares | [1] | 0 | 0 | 0 |
Net cash provided by (used for) financing activities | [1] | 13,008 | (22,930) | (180,265) |
Proceeds / (issuance) of notes to affiliates | [1] | (2,310) | (120,000) | |
Debt restructuring | [1] | 0 | ||
Dividends from subsidiaries | [1] | (20,620) | (156,265) | |
Net change in cash and cash equivalents | [1] | (30,606) | 15,661 | (13,907) |
Cash and cash equivalents at beginning of period | [1] | 71,237 | 55,576 | 69,483 |
Cash and cash equivalents at end of period | [1] | $ 40,631 | $ 71,237 | $ 55,576 |
[1] | Includes all other subsidiaries of Global Indemnity Limited and eliminations |
Net Federal Income Taxes and Ca
Net Federal Income Taxes and Cash Interest Paid (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |||
Federal income taxes paid | $ 251 | $ 859 | $ 133 |
Federal income taxes recovered | 170 | 0 | 19 |
Interest paid | $ 19,711 | $ 19,387 | $ 14,504 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Right of use lease assets | $ 22,761 | |
Lease liabilities | $ 23,539 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Right of use lease assets | $ 25,300 | |
Lease liabilities | 25,400 | |
Accounting Standards Update 2016-02 | Maximum | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Cumulative effect adjustment resulting from adoption of new accounting guidance | $ 100 |
Summary of Quarterly Performanc
Summary of Quarterly Performance (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Net earned premiums | $ 141,660 | $ 133,312 | $ 128,201 | $ 122,089 | $ 125,328 | $ 120,528 | $ 113,917 | $ 108,002 | $ 525,262 | $ 467,775 | $ 438,034 | |||
Net investment income | 9,659 | 11,348 | 13,826 | 7,219 | 12,234 | 11,750 | 10,954 | 11,404 | 42,052 | 46,342 | 39,323 | |||
Net realized investment gains (losses) | 24,052 | (2,690) | 3,590 | 10,390 | (24,740) | 5,319 | 2,830 | (316) | 35,342 | (16,907) | 1,576 | |||
Net losses and loss adjustment expenses | 73,423 | 73,583 | 70,075 | 58,321 | 139,199 | 80,493 | 58,861 | 56,072 | 275,402 | 334,625 | 269,212 | |||
Acquisition costs and other underwriting expenses | 54,760 | 53,366 | 50,534 | 49,743 | 49,582 | 48,680 | 47,513 | 45,003 | 208,403 | 190,778 | 183,733 | |||
Income (loss) before income taxes | 35,610 | 6,404 | 15,849 | 23,894 | (86,602) | 436 | 5,793 | 4,448 | 81,757 | (75,925) | (10,050) | |||
Net income (loss) | $ 29,031 | $ 6,721 | $ 14,663 | $ 19,600 | $ (73,317) | $ 3,728 | $ 7,192 | $ 5,701 | $ 70,015 | $ (56,696) | $ (9,551) | |||
Per share data - Diluted: | ||||||||||||||
Net income (loss) per share | $ 2.02 | $ 0.47 | $ 1.02 | $ 1.37 | $ (5.20) | $ 0.26 | $ 0.50 | $ 0.40 | $ 4.88 | [1] | $ (4.02) | [1] | $ (0.55) | [1] |
[1] | For the years ended December 31, 2018 and 2017, “weighted average shares outstanding - basic” was used to calculate “diluted earnings per share” due to a net loss for the period. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Feb. 09, 2020 | Dec. 08, 2019 | Sep. 15, 2019 | Jun. 02, 2019 | Feb. 10, 2019 | Dec. 02, 2018 | Sep. 16, 2018 | Jun. 03, 2018 | Mar. 04, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||||||||||
Dividend declared date | Dec. 8, 2019 | Sep. 15, 2019 | Jun. 2, 2019 | Feb. 10, 2019 | Dec. 2, 2018 | Sep. 16, 2018 | Jun. 3, 2018 | Mar. 4, 2018 | |||
Dividend payable, per share | $ 0.25 | $ 0.25 | |||||||||
Dividend payable date | Dec. 31, 2019 | Oct. 2, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 31, 2018 | Oct. 1, 2018 | Jun. 29, 2018 | Mar. 29, 2018 | |||
Dividend payable, date of record | Dec. 24, 2019 | Sep. 26, 2019 | Jun. 21, 2019 | Mar. 22, 2019 | Dec. 24, 2018 | Sep. 27, 2018 | Jun. 22, 2018 | Mar. 21, 2018 | |||
Subsequent Events | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Dividend declared date | Feb. 9, 2020 | ||||||||||
Dividend payable, per share | $ 0.25 | ||||||||||
Dividend payable date | Mar. 31, 2020 | ||||||||||
Dividend payable, date of record | Mar. 24, 2020 |
Summary Of Investments Other Th
Summary Of Investments Other Than Investments In Related Parties (Detail) $ in Thousands | Dec. 31, 2019USD ($) | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | $ 1,541,951 | [1] |
Value | 1,563,542 | |
Amount Included in the Balance Sheet | 1,563,542 | |
Fixed Maturities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 1,231,568 | [1] |
Value | 1,253,159 | |
Amount Included in the Balance Sheet | 1,253,159 | |
Fixed Maturities | United States Government and Government Agencies and Authorities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 153,906 | [1] |
Value | 156,689 | |
Amount Included in the Balance Sheet | 156,689 | |
Fixed Maturities | States, Municipalities, and Political Subdivisions | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 63,256 | [1] |
Value | 63,838 | |
Amount Included in the Balance Sheet | 63,838 | |
Fixed Maturities | Mortgage Backed And Asset Backed Securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 677,412 | [1] |
Value | 685,015 | |
Amount Included in the Balance Sheet | 685,015 | |
Fixed Maturities | Public Utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 22,937 | [1] |
Value | 23,724 | |
Amount Included in the Balance Sheet | 23,724 | |
Fixed Maturities | All Other Corporate Bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 314,057 | [1] |
Value | 323,893 | |
Amount Included in the Balance Sheet | 323,893 | |
Equity securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 263,104 | [1] |
Value | 263,104 | |
Amount Included in the Balance Sheet | 263,104 | |
Equity securities | Public Utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 4,096 | [1] |
Value | 4,096 | |
Amount Included in the Balance Sheet | 4,096 | |
Equity securities | Industrial and Miscellaneous | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 259,008 | [1] |
Value | 259,008 | |
Amount Included in the Balance Sheet | 259,008 | |
Other long-term investments | Other Invested Assets | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 47,279 | [1] |
Value | 47,279 | |
Amount Included in the Balance Sheet | $ 47,279 | |
[1] | Original cost of fixed maturities adjusted for amortization of premiums and accretion of discounts; original cost of equity securities and other long-term investments adjusted for income or loss earned on investments in accordance with equity method of accounting. All amounts are shown net of impairment losses. |
Condensed Financial Informati_2
Condensed Financial Information of Registrant (Parent Only) Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
ASSETS | |||||
Fixed maturities | $ 1,253,159 | $ 1,235,155 | |||
Other invested assets | 47,279 | 50,753 | |||
Total investments | 1,563,542 | 1,410,655 | |||
Cash and cash equivalents | 44,271 | 99,497 | $ 74,414 | $ 75,110 | |
Due from affiliates | 0 | 0 | |||
Other assets | 60,048 | 28,530 | |||
Total assets | 2,075,885 | 1,960,266 | 2,001,669 | ||
Liabilities: | |||||
Debt | 296,640 | 288,565 | |||
Intercompany notes payable | 0 | 0 | |||
Interest payable | 0 | 0 | |||
Other liabilities | 74,212 | 55,069 | |||
Total liabilities | 1,349,076 | 1,331,207 | |||
Commitments and contingencies | |||||
Shareholders’ equity: | |||||
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued: 10,282,277 and 10,171,954, respectively; A ordinary shares outstanding: 10,167,056 and 10,095,312, respectively; B ordinary shares issued and outstanding: 4,133,366 and 4,133,366, respectively | 2 | 2 | |||
Additional paid-in capital | 442,403 | 438,182 | |||
Accumulated other comprehensive income (loss), net of taxes | 17,609 | (21,231) | 8,983 | ||
Retained earnings | 270,768 | 215,132 | |||
Total shareholders’ equity | 726,809 | 629,059 | 718,394 | ||
Total liabilities and shareholders’ equity | 2,075,885 | 1,960,266 | |||
Ordinary Shares A | |||||
Shareholders’ equity: | |||||
Total shareholders’ equity | 1 | 1 | $ 1 | $ 1 | |
Global Indemnity Limited | |||||
Shareholders’ equity: | |||||
Additional paid-in capital | 442,400 | ||||
Parent Company | Global Indemnity Limited | |||||
ASSETS | |||||
Fixed maturities | 30,938 | 37,484 | |||
Other invested assets | 13,530 | 17,893 | |||
Total investments | 44,468 | 55,377 | |||
Cash and cash equivalents | 977 | 2,221 | |||
Equity in unconsolidated subsidiaries | [1] | 1,218,491 | 1,105,032 | ||
Due from affiliates | [1] | 0 | 584 | ||
Other assets | 9,394 | 8,461 | |||
Total assets | 1,273,330 | 1,171,675 | |||
Liabilities: | |||||
Debt | 0 | 0 | |||
Due to affiliates (1) | 3,612 | 0 | |||
Intercompany notes payable | [1] | 520,498 | 520,498 | ||
Interest payable - affiliates | [1] | 20,343 | 19,499 | ||
Interest payable | 0 | 0 | |||
Other liabilities | 2,068 | 2,619 | |||
Total liabilities | 546,521 | 542,616 | |||
Commitments and contingencies | 0 | 0 | |||
Shareholders’ equity: | |||||
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued: 10,282,277 and 10,171,954, respectively; A ordinary shares outstanding: 10,167,056 and 10,095,312, respectively; B ordinary shares issued and outstanding: 4,133,366 and 4,133,366, respectively | 2 | 2 | |||
Preferred shares, $0.0001 par value, 100,000,000 shares authorized, none issued and outstanding | 0 | 0 | |||
Additional paid-in capital | 442,403 | 438,182 | |||
Accumulated other comprehensive income (loss), net of taxes | 17,609 | (21,231) | |||
Retained earnings | 270,768 | 215,132 | |||
Total shareholders’ equity | 726,809 | 629,059 | |||
Total liabilities and shareholders’ equity | 1,273,330 | 1,171,675 | |||
Parent Company | Global Indemnity Limited | Ordinary Shares A | |||||
Shareholders’ equity: | |||||
A ordinary shares in treasury, at cost: 115,221 and 76,642 shares, respectively | $ (3,973) | $ (3,026) | |||
[1] | This item has been eliminated in the Company’s Consolidated Financial Statements. |
Condensed Financial Informati_3
Condensed Financial Information of Registrant (Parent Only) Balance Sheets (Parenthetical) (Detail) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Condensed Financial Statements, Captions [Line Items] | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 900,000,000 | 900,000,000 |
Global Indemnity Limited | Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 900,000,000 | 900,000,000 |
Preferred shares, par value | $ 0.0001 | $ 0.0001 |
Preferred shares, shares authorized | 100,000,000 | 100,000,000 |
Preferred shares, shares issued | 0 | 0 |
Preferred shares, shares outstanding | 0 | 0 |
Ordinary Shares A | ||
Condensed Financial Statements, Captions [Line Items] | ||
Ordinary shares, shares issued | 10,282,277 | 10,171,954 |
Ordinary shares, shares outstanding | 10,167,056 | 10,095,312 |
Ordinary Shares A | Global Indemnity Limited | Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Ordinary shares, shares issued | 10,282,277 | 10,171,954 |
Ordinary shares, shares outstanding | 10,167,056 | 10,095,312 |
Treasury shares, shares | 115,221 | 76,642 |
Ordinary Shares B | ||
Condensed Financial Statements, Captions [Line Items] | ||
Ordinary shares, shares issued | 4,133,366 | 4,133,366 |
Ordinary shares, shares outstanding | 4,133,366 | 4,133,366 |
Ordinary Shares B | Global Indemnity Limited | Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Ordinary shares, shares issued | 4,133,366 | 4,133,366 |
Ordinary shares, shares outstanding | 4,133,366 | 4,133,366 |
Condensed Financial Informati_4
Condensed Financial Information of Registrant (Parent Only) Statement of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues: | ||||||||||||
Net investment income | $ 9,659 | $ 11,348 | $ 13,826 | $ 7,219 | $ 12,234 | $ 11,750 | $ 10,954 | $ 11,404 | $ 42,052 | $ 46,342 | $ 39,323 | |
Net realized investment gains (losses) | 24,052 | (2,690) | 3,590 | 10,390 | (24,740) | 5,319 | 2,830 | (316) | 35,342 | (16,907) | 1,576 | |
Other income (loss) | 1,816 | 1,728 | 6,582 | |||||||||
Total revenues | 604,472 | 498,938 | 485,515 | |||||||||
Expenses: | ||||||||||||
Interest expense | 20,022 | 19,694 | 16,906 | |||||||||
Income (loss) before income taxes | 35,610 | 6,404 | 15,849 | 23,894 | (86,602) | 436 | 5,793 | 4,448 | 81,757 | (75,925) | (10,050) | |
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | |||||||||
Net income (loss) | $ 29,031 | $ 6,721 | $ 14,663 | $ 19,600 | $ (73,317) | $ 3,728 | $ 7,192 | $ 5,701 | 70,015 | (56,696) | (9,551) | |
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized holding gains (losses) | 43,980 | (20,748) | 9,677 | |||||||||
Equity in other comprehensive income (loss) of unconsolidated subsidiaries | 0 | 0 | 0 | |||||||||
Reclassification adjustment for (gains) losses included in net income (loss) | 5,437 | (2,450) | 848 | |||||||||
Other comprehensive income (loss), net of tax | 38,840 | (20,186) | 9,601 | |||||||||
Comprehensive income (loss), net of tax | 108,855 | (76,882) | 50 | |||||||||
Parent Company | Global Indemnity Limited | ||||||||||||
Revenues: | ||||||||||||
Net investment income | 2,295 | 658 | 361 | |||||||||
Net realized investment gains (losses) | 574 | (154) | (368) | |||||||||
Other income (loss) | 0 | 0 | 6 | |||||||||
Total revenues | 2,869 | 504 | (1) | |||||||||
Expenses: | ||||||||||||
Intercompany interest expense | [1] | 844 | 7,034 | 2,477 | ||||||||
Interest expense | 264 | 5,960 | 15,872 | |||||||||
Other expenses | 6,692 | 11,317 | 16,807 | |||||||||
Income (loss) before income taxes | (4,931) | (23,807) | (35,157) | |||||||||
Equity in net income (loss) of subsidiaries | [1] | 74,946 | (32,889) | 25,606 | ||||||||
Net income (loss) | 70,015 | (56,696) | (9,551) | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized holding gains (losses) | 872 | (499) | (216) | |||||||||
Equity in other comprehensive income (loss) of unconsolidated subsidiaries | [1] | 38,520 | (19,841) | 9,449 | ||||||||
Reclassification adjustment for (gains) losses included in net income (loss) | (552) | 154 | 368 | |||||||||
Other comprehensive income (loss), net of tax | 38,840 | (20,186) | 9,601 | |||||||||
Comprehensive income (loss), net of tax | $ 108,855 | $ (76,882) | $ 50 | |||||||||
[1] | This item has been eliminated in the Company’s Consolidated Financial Statements. |
Condensed Financial Informati_5
Condensed Financial Information of Registrant (Parent Only) Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used for) operating activities | $ 32,376 | $ 42,069 | $ (18,909) |
Cash flows from investing activities: | |||
Proceeds from sale of fixed maturities | 977,321 | 293,348 | 918,439 |
Proceeds from sale of equity securities | 260,891 | 35,639 | 32,218 |
Proceeds from maturity of fixed maturities | 180,546 | 55,182 | 145,475 |
Proceeds from other invested assets | 16,757 | 43,377 | 12,299 |
Purchase of fixed maturities | (1,129,567) | (370,536) | (1,078,199) |
Purchases of equity securities | (365,255) | (36,258) | (36,647) |
Net cash provided by (used for) investing activities | (80,244) | 5,320 | (28,951) |
Cash flows from financing activities: | |||
Redemption of ordinary shares | 0 | 0 | (83,015) |
Proceeds from issuance of subordinated notes | 0 | 0 | 130,000 |
Debt issuance cost | 0 | 0 | (4,246) |
Proceeds / (issuance) of notes to affiliates | 0 | 0 | |
Debt restructuring | 0 | ||
Dividends paid to shareholders | (14,222) | (14,027) | 0 |
Dividends from subsidiaries | 0 | 0 | |
Purchase of A ordinary shares | (947) | (1,867) | (1,159) |
Net cash provided by (used for) financing activities | (7,358) | (22,306) | 47,164 |
Net change in cash and cash equivalents | (55,226) | 25,083 | (696) |
Cash and cash equivalents at beginning of period | 99,497 | 74,414 | 75,110 |
Cash and cash equivalents at end of period | 44,271 | 99,497 | 74,414 |
Parent Company | Global Indemnity Limited | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used for) operating activities | 2,632 | (20,178) | (24,927) |
Cash flows from investing activities: | |||
Proceeds from sale of fixed maturities | 48,393 | 32,980 | 12,389 |
Proceeds from sale of equity securities | 10,900 | 0 | 0 |
Proceeds from maturity of fixed maturities | 0 | 5,431 | 10,000 |
Proceeds from other invested assets | 4,363 | 1,500 | 0 |
Purchase of fixed maturities | (10,548) | (33,327) | (32,044) |
Purchases of equity securities | (41,815) | 0 | 0 |
Net cash provided by (used for) investing activities | 11,293 | 6,584 | (9,655) |
Cash flows from financing activities: | |||
Redemption of ordinary shares | 0 | 0 | (83,015) |
Proceeds from issuance of subordinated notes | 0 | 0 | 130,000 |
Debt issuance cost | 0 | 0 | (4,246) |
Proceeds / (issuance) of notes to affiliates | 0 | 230,000 | 0 |
Debt restructuring | 0 | (230,000) | 0 |
Dividends paid to shareholders | (14,222) | (14,027) | 0 |
Dividends from subsidiaries | 0 | 20,620 | 100,000 |
Capital contribution | 0 | 0 | (96,000) |
Purchase of A ordinary shares | (947) | (1,867) | (1,159) |
Net cash provided by (used for) financing activities | (15,169) | 4,726 | 45,580 |
Net change in cash and cash equivalents | (1,244) | (8,868) | 10,998 |
Cash and cash equivalents at beginning of period | 2,221 | 11,089 | 91 |
Cash and cash equivalents at end of period | $ 977 | $ 2,221 | $ 11,089 |
Supplementary Insurance Infor_2
Supplementary Insurance Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Premium Revenue | $ 525,262 | $ 467,775 | $ 438,034 |
Benefits, Claims, Losses And Settlement Expenses | 275,402 | 334,625 | 269,212 |
Amortization of Deferred Policy Acquisition Costs | 132,329 | 117,988 | 108,964 |
Net Written Premium | 562,089 | 472,547 | 450,180 |
Commercial Specialty | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 27,415 | 23,059 | 21,222 |
Future Policy Benefits, Losses, Claims And Loss Expenses | 390,148 | 417,175 | 419,042 |
Unearned Premiums | 134,433 | 110,704 | 102,191 |
Other Policy and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 237,758 | 218,357 | 178,798 |
Benefits, Claims, Losses And Settlement Expenses | 108,911 | 114,476 | 62,834 |
Amortization of Deferred Policy Acquisition Costs | 56,339 | 49,715 | 42,008 |
Net Written Premium | 258,719 | 226,827 | 186,448 |
Specialty Property | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 18,249 | 18,161 | 18,668 |
Future Policy Benefits, Losses, Claims And Loss Expenses | 50,334 | 82,722 | 68,900 |
Unearned Premiums | 81,922 | 88,809 | 99,631 |
Other Policy and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 140,232 | 128,768 | 149,786 |
Benefits, Claims, Losses And Settlement Expenses | 75,426 | 122,709 | 112,055 |
Amortization of Deferred Policy Acquisition Costs | 37,811 | 37,854 | 38,893 |
Net Written Premium | 140,670 | 127,470 | 144,271 |
Farm, Ranch & Stable | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 9,612 | 8,897 | 8,895 |
Future Policy Benefits, Losses, Claims And Loss Expenses | 45,601 | 50,923 | 51,355 |
Unearned Premiums | 44,048 | 40,265 | 38,073 |
Other Policy and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 71,312 | 69,248 | 66,197 |
Benefits, Claims, Losses And Settlement Expenses | 42,700 | 41,180 | 53,743 |
Amortization of Deferred Policy Acquisition Costs | 18,307 | 17,536 | 17,723 |
Net Written Premium | 74,416 | 70,217 | 65,528 |
Reinsurance Operations | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 15,401 | 11,559 | 12,862 |
Future Policy Benefits, Losses, Claims And Loss Expenses | 144,098 | 129,211 | 95,367 |
Unearned Premiums | 54,458 | 42,134 | 45,502 |
Other Policy and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 75,960 | 51,402 | 43,253 |
Benefits, Claims, Losses And Settlement Expenses | 48,365 | 56,260 | 40,580 |
Amortization of Deferred Policy Acquisition Costs | 19,872 | 12,883 | 10,340 |
Net Written Premium | $ 88,284 | $ 48,033 | $ 53,933 |
Supplementary Insurance Infor_3
Supplementary Insurance Information Unallocated Corporate Items (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||
Net Investment Income | $ 42,052 | $ 46,342 | $ 39,323 |
Corporate and Other Operating Expenses | $ 18,888 | $ 29,766 | $ 25,714 |
Reinsurance Earned Premiums (De
Reinsurance Earned Premiums (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||||||||
Direct Amount | $ 527,018 | $ 483,229 | $ 440,109 | |||||||||
Ceded to Other Companies | [1] | 78,649 | 83,610 | 79,886 | ||||||||
Assumed from Other Companies | 76,893 | 68,156 | 77,811 | |||||||||
Net premiums | $ 141,660 | $ 133,312 | $ 128,201 | $ 122,089 | $ 125,328 | $ 120,528 | $ 113,917 | $ 108,002 | 525,262 | 467,775 | 438,034 | |
Property & Liability Insurance | ||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||||||||
Direct Amount | 527,018 | 483,229 | 440,109 | |||||||||
Ceded to Other Companies | 78,649 | 83,610 | 79,886 | |||||||||
Assumed from Other Companies | 76,893 | 68,156 | 77,811 | |||||||||
Net premiums | $ 525,262 | $ 467,775 | $ 438,034 | |||||||||
Percentage of Amount Assumed to Net | 14.60% | 14.60% | 17.80% | |||||||||
[1] | Includes ceded written premiums of ($0.3) million, ($2.1) million, and ($1.3) million and ceded earned premiums of $2.3 million, $7.3 million and $13.5 million to American Bankers Insurance Company for the years ended December 31, 2019, 2018, and 2017, respectively. |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts and Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment Asset Valuation Reserves, Mortgage Loans | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Charged (Credited) to Other Accounts | $ 0 | $ 0 | $ 0 |
Other Deductions | 0 | 0 | 0 |
Investment Asset Valuation Reserves, Real Estate | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Allowance for Doubtful Accounts, Premiums, Accounts and Notes Receivable | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 2,272 | 2,179 | 1,928 |
Charged (Credited) to Costs and Expenses | 482 | 93 | 251 |
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Balance at End of Period | 2,754 | 2,272 | 2,179 |
Allowance for Doubtful Accounts, Deferred Tax Asset Valuation Allowance | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Allowance for Doubtful Accounts, Reinsurance Receivable | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 8,040 | 8,040 | 8,040 |
Charged (Credited) to Costs and Expenses | 952 | 0 | 0 |
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 8,992 | $ 8,040 | $ 8,040 |
Supplementary Information for_2
Supplementary Information for Property Casualty Underwriters (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | |||
Deferred Policy Acquisition Costs | $ 70,677 | $ 61,676 | $ 61,647 |
Reserves for Unpaid Claims and Claim Adjustment Expenses | 630,181 | 680,031 | 634,664 |
Discount If Any Deducted | 400 | 800 | 1,200 |
Unearned Premiums | 314,861 | 281,912 | 285,397 |
Earned Premiums | 525,262 | 467,775 | 438,034 |
Net Investment Income | 42,052 | 46,342 | 39,323 |
Claims and Claim Adjustment Expense Incurred Related To Current Year | 308,211 | 363,423 | 323,112 |
Claims and Claim Adjustment Expense Incurred Related To Prior Year | (32,809) | (28,798) | (53,900) |
Amortization Of Deferred Policy Acquisition Costs | 132,329 | 117,988 | 108,964 |
Paid Claims and Claim Adjustment Expenses | 292,183 | 301,357 | 271,756 |
Premiums Written | $ 562,089 | $ 472,547 | $ 450,180 |