Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 28, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Registrant Name | GLOBAL INDEMNITY GROUP, LLC | |
Entity Central Index Key | 0001494904 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-34809 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-2619578 | |
Entity Address, Address Line One | Three Bala Plaza East | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Bala Cynwyd | |
Entity Address, Country | PA | |
Entity Address, Postal Zip Code | 19004 | |
City Area Code | 610 | |
Local Phone Number | 664-1500 | |
Class A Common Shares | ||
Document Information [Line Items] | ||
Entity Ordinary Shares, Shares Outstanding | 10,642,307 | |
Title of each class | Class A Common Shares | |
Trading Symbol | GBLI | |
Name of each exchange on which registered | NYSE | |
Class B Common Shares | ||
Document Information [Line Items] | ||
Entity Ordinary Shares, Shares Outstanding | 3,947,206 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fixed maturities: | ||
Available for sale, at fair value (amortized cost: $1,151,195 and $1,193,746; net of allowance for expected credit losses of $0 at June 30, 2022 and December 31, 2021) | $ 1,118,129 | $ 1,201,866 |
Equity securities, at fair value | 17,870 | 99,978 |
Other invested assets | 140,197 | 152,651 |
Total investments | 1,276,196 | 1,454,495 |
Cash and cash equivalents | 59,842 | 78,278 |
Premium receivables, net of allowance for expected credit losses of $2,919 at June 30, 2022 and $2,996 at December 31, 2021 | 161,959 | 128,444 |
Reinsurance receivables, net of allowance for expected credit losses of $8,992 at June 30, 2022 and December 31, 2021 | 104,064 | 99,864 |
Funds held by ceding insurers | 23,906 | 27,958 |
Deferred federal income taxes | 49,671 | 37,329 |
Deferred acquisition costs | 70,089 | 60,331 |
Intangible assets | 20,068 | 20,261 |
Goodwill | 5,398 | 5,398 |
Prepaid reinsurance premiums | 51,538 | 53,494 |
Lease right of use assets | 15,040 | 16,051 |
Other assets | 24,008 | 30,906 |
Total assets | 1,861,779 | 2,012,809 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 804,661 | 759,904 |
Unearned premiums | 336,677 | 316,566 |
Ceded balances payable | 14,755 | 35,340 |
Payable for securities purchased | 9,564 | 794 |
Contingent commissions | 6,328 | 7,903 |
Debt | 0 | 126,430 |
Lease liabilities | 17,912 | 19,079 |
Other liabilities | 30,602 | 40,172 |
Total liabilities | 1,220,499 | 1,306,188 |
Commitments and contingencies (Note 11) | ||
Shareholders’ equity: | ||
Common shares: no par value; 900,000,000 common shares authorized; class A common shares issued: 10,675,757 and 10,574,589 respectively; class A common shares outstanding: 10,642,307 and 10,557,093, respectively; class B common shares issued and outstanding: 3,947,206 and 3,947,206, respectively | 0 | 0 |
Additional paid-in capital | 450,052 | 447,406 |
Accumulated other comprehensive income (loss), net of tax | (26,625) | 6,404 |
Retained earnings | 214,757 | 249,301 |
Total shareholders’ equity | 641,280 | 706,621 |
Total liabilities and shareholders’ equity | 1,861,779 | 2,012,809 |
Series A Cumulative Fixed Rate Preferred Shares | ||
Shareholders’ equity: | ||
Series A cumulative fixed rate preferred shares, $1,000 par value; 100,000,000 shares authorized, shares issued and outstanding: 4,000 and 4,000 shares, respectively, liquidation preference: $1,000 per share and $1,000 per share, respectively | 4,000 | 4,000 |
Class A Common Shares | ||
Shareholders’ equity: | ||
Class A common shares in treasury, at cost: 33,450 and 17,496 shares, respectively | $ (904) | $ (490) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Available for sale, amortized cost | $ 1,151,195 | $ 1,193,746 |
Available-for-sale, net of allowance for expected credit losses | 0 | 0 |
Premiums receivable, allowance for expected credit loss | 2,919 | 2,996 |
Reinsurance receivable, allowance for expected credit loss | $ 8,992 | $ 8,992 |
Common shares, par value | $ 0 | $ 0 |
Common shares, shares authorized | 900,000,000 | 900,000,000 |
Series A Cumulative Fixed Rate Preferred Shares | ||
Preferred shares, par value | $ 1,000 | $ 1,000 |
Preferred shares, shares authorized | 100,000,000 | 100,000,000 |
Preferred shares, shares issued | 4,000 | 4,000 |
Preferred shares, shares outstanding | 4,000 | 4,000 |
Preferred shares, liquidation preference | $ 1,000 | $ 1,000 |
Class A Common Shares | ||
Common shares, shares issued | 10,675,757 | 10,574,589 |
Common shares, shares outstanding | 10,642,307 | 10,557,093 |
Treasury shares, shares | 33,450 | 17,496 |
Class B Common Shares | ||
Common shares, shares issued | 3,947,206 | 3,947,206 |
Common shares, shares outstanding | 3,947,206 | 3,947,206 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Revenues: | |||||
Gross written premiums | $ 196,823 | $ 175,236 | $ 387,806 | $ 338,794 | |
Ceded written premiums | (29,665) | (14,583) | (61,166) | (30,458) | |
Net written premiums | 167,158 | 160,653 | 326,640 | 308,336 | |
Change in net unearned premiums | (11,409) | (11,245) | (22,068) | (15,228) | |
Net earned premiums | 155,749 | 149,408 | 304,572 | 293,108 | |
Net investment income | 1,930 | 10,633 | 8,522 | 20,469 | |
Net realized investment gains (losses) | (9,916) | 3,833 | (35,301) | 7,652 | |
Other income | 97 | 521 | 523 | 898 | |
Total revenues | 147,860 | 164,395 | 278,316 | 322,127 | |
Losses and Expenses: | |||||
Net losses and loss adjustment expenses | 92,618 | 90,938 | 177,313 | 181,721 | |
Acquisition costs and other underwriting expenses | 61,098 | 57,213 | 117,790 | 111,977 | |
Corporate and other operating expenses | 2,993 | 6,329 | 7,653 | 10,605 | |
Interest expense | 410 | 2,696 | 3,005 | 5,291 | |
Loss on extinguishment of debt | 3,529 | 3,529 | 0 | ||
Income (loss) before income taxes | (12,788) | 7,219 | (30,974) | 12,533 | |
Income tax expense (benefit) | (626) | 844 | (4,039) | 641 | |
Net income (loss) | (12,162) | 6,375 | (26,935) | 11,892 | |
Less: preferred stock distributions | 110 | 110 | 220 | 220 | |
Net income (loss) available to common shareholders | $ (12,272) | $ 6,265 | $ (27,155) | $ 11,672 | |
Net income (loss) available to common shareholders | |||||
Basic | [1] | $ (0.84) | $ 0.43 | $ (1.87) | $ 0.81 |
Diluted | [1] | $ (0.84) | $ 0.43 | $ (1.87) | $ 0.80 |
Weighted-average number of shares outstanding | |||||
Basic | 14,543,234 | 14,412,446 | 14,529,170 | 14,396,523 | |
Diluted | [2] | 14,543,234 | 14,681,731 | 14,529,170 | 14,651,124 |
Cash distributions declared per common share | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 | |
[1]For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss for the period.[2]For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (12,162) | $ 6,375 | $ (26,935) | $ 11,892 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized holding gains (losses) | (21,503) | 9,477 | (63,876) | (15,701) |
Reclassification adjustment for losses included in net income (loss) | 7,877 | (295) | 30,962 | 521 |
Unrealized foreign currency translation gains (losses) | (227) | (67) | (115) | (160) |
Other comprehensive income (loss), net of tax | (13,853) | 9,115 | (33,029) | (15,340) |
Comprehensive income (loss), net of tax | $ (26,015) | $ 15,490 | $ (59,964) | $ (3,448) |
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 | Class A Common Shares Common Stock | Class A Common Shares Treasury Shares | Series A Cumulative Fixed Rate Preferred Shares Preferred Stock | Class B Common Shares Common Stock |
Number at Dec. 31, 2020 | 0 | 10,263,722 | 4,000 | 4,133,366 | |||||
Class A common shares purchased | 16,915 | ||||||||
Forfeited shares | 178 | ||||||||
Common shares issued under share incentive plans, net of forfeitures | 42,644 | ||||||||
Common shares issued to directors | 39,744 | ||||||||
Share conversion | 186,160 | (186,160) | |||||||
Number at Jun. 30, 2021 | 17,093 | 10,532,270 | 4,000 | 3,947,206 | |||||
Balance at Dec. 31, 2020 | $ 445,051 | $ 34,308 | $ 234,965 | $ 0 | $ 4,000 | ||||
Class A common shares purchased, at cost | $ (479) | ||||||||
Other comprehensive income (loss): | |||||||||
Change in unrealized holding gains (losses) | (15,180) | ||||||||
Unrealized foreign currency translation gains | $ (160) | (160) | |||||||
Other comprehensive income (loss), net of tax | (15,340) | (15,340) | |||||||
Net income (loss) | 11,892 | 11,892 | |||||||
Preferred share distributions | (220) | (220) | |||||||
Dividends/ Distribution to shareholders | (7,365) | ||||||||
Share compensation plans | 2,753 | ||||||||
Balance at Jun. 30, 2021 | 709,565 | 447,804 | 18,968 | 239,272 | $ (479) | ||||
Number at Mar. 31, 2021 | 9,993 | 10,303,832 | 4,000 | 4,133,366 | |||||
Class A common shares purchased | 7,100 | ||||||||
Forfeited shares | 0 | ||||||||
Common shares issued under share incentive plans, net of forfeitures | 22,540 | ||||||||
Common shares issued to directors | 19,738 | ||||||||
Share conversion | 186,160 | (186,160) | |||||||
Number at Jun. 30, 2021 | 17,093 | 10,532,270 | 4,000 | 3,947,206 | |||||
Balance at Mar. 31, 2021 | 446,199 | 9,853 | 236,688 | $ (283) | $ 4,000 | ||||
Class A common shares purchased, at cost | $ (196) | ||||||||
Other comprehensive income (loss): | |||||||||
Change in unrealized holding gains (losses) | 9,182 | ||||||||
Unrealized foreign currency translation gains | (67) | (67) | |||||||
Other comprehensive income (loss), net of tax | 9,115 | 9,115 | |||||||
Net income (loss) | 6,375 | 6,375 | |||||||
Preferred share distributions | (110) | (110) | |||||||
Dividends/ Distribution to shareholders | (3,681) | ||||||||
Share compensation plans | 1,605 | ||||||||
Balance at Jun. 30, 2021 | 709,565 | 447,804 | 18,968 | 239,272 | $ (479) | ||||
Number at Dec. 31, 2021 | 17,496 | 10,574,589 | 4,000 | 3,947,206 | |||||
Class A common shares purchased | 15,954 | ||||||||
Forfeited shares | 0 | ||||||||
Common shares issued under share incentive plans, net of forfeitures | 50,598 | ||||||||
Common shares issued to directors | 50,570 | ||||||||
Share conversion | 0 | 0 | |||||||
Number at Jun. 30, 2022 | 33,450 | 10,675,757 | 4,000 | 3,947,206 | |||||
Balance at Dec. 31, 2021 | 706,621 | 447,406 | 6,404 | 249,301 | $ (490) | $ 4,000 | |||
Class A common shares purchased, at cost | $ (414) | ||||||||
Other comprehensive income (loss): | |||||||||
Change in unrealized holding gains (losses) | (32,914) | ||||||||
Unrealized foreign currency translation gains | (115) | (115) | |||||||
Other comprehensive income (loss), net of tax | (33,029) | (33,029) | |||||||
Net income (loss) | (26,935) | (26,935) | |||||||
Preferred share distributions | (220) | (220) | |||||||
Dividends/ Distribution to shareholders | (7,389) | ||||||||
Share compensation plans | 2,646 | ||||||||
Balance at Jun. 30, 2022 | 641,280 | 450,052 | (26,625) | 214,757 | $ (904) | ||||
Number at Mar. 31, 2022 | 22,277 | 10,614,555 | 4,000 | 3,947,206 | |||||
Class A common shares purchased | 11,173 | ||||||||
Forfeited shares | 0 | ||||||||
Common shares issued under share incentive plans, net of forfeitures | 35,442 | ||||||||
Common shares issued to directors | 25,760 | ||||||||
Share conversion | 0 | 0 | |||||||
Number at Jun. 30, 2022 | 33,450 | 10,675,757 | 4,000 | 3,947,206 | |||||
Balance at Mar. 31, 2022 | 448,266 | (12,772) | 230,771 | $ (610) | $ 4,000 | ||||
Class A common shares purchased, at cost | $ (294) | ||||||||
Other comprehensive income (loss): | |||||||||
Change in unrealized holding gains (losses) | (13,626) | ||||||||
Unrealized foreign currency translation gains | (227) | (227) | |||||||
Other comprehensive income (loss), net of tax | (13,853) | (13,853) | |||||||
Net income (loss) | (12,162) | (12,162) | |||||||
Preferred share distributions | (110) | (110) | |||||||
Dividends/ Distribution to shareholders | (3,742) | ||||||||
Share compensation plans | 1,786 | ||||||||
Balance at Jun. 30, 2022 | $ 641,280 | $ 450,052 | $ (26,625) | $ 214,757 | $ (904) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Retained Earnings | ||
Dividend payable, per share | $ 0.25 | $ 0.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (26,935) | $ 11,892 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization and depreciation | 3,265 | 4,176 |
Amortization of debt issuance costs | 41 | 71 |
Restricted stock and stock option expense | 2,646 | 2,753 |
Deferred federal income taxes | (4,039) | 641 |
Amortization of bond premium and discount, net | 1,628 | 3,043 |
Net realized investment (gains) losses | 35,301 | (7,652) |
Loss on extinguishment of debt | 3,529 | 0 |
(Income) loss from equity method investments, net of distributions | 5,913 | (1,658) |
Changes in: | ||
Premium receivables, net | (33,515) | (14,501) |
Reinsurance receivables, net | (4,200) | (1,539) |
Funds held by ceding insurers | 3,905 | 11,485 |
Unpaid losses and loss adjustment expenses | 44,757 | 34,807 |
Unearned premiums | 20,111 | 17,489 |
Ceded balances payable | (20,585) | 5,396 |
Other assets and liabilities | (3,986) | (8,377) |
Contingent commissions | (1,575) | (4,412) |
Deferred acquisition costs | (9,758) | (3,866) |
Prepaid reinsurance premiums | 1,956 | (2,260) |
Net cash provided by operating activities | 18,459 | 47,488 |
Cash flows from investing activities: | ||
Proceeds from sale of fixed maturities | 829,205 | 636,040 |
Proceeds from sale of equity securities | 88,726 | 42,821 |
Proceeds from maturity of fixed maturities | 42,483 | 38,459 |
Proceeds from maturity of preferred stock | 0 | 666 |
Proceeds from other invested assets | 6,542 | 2,673 |
Amounts received (paid) in connection with derivatives | 4,490 | (276) |
Purchases of fixed maturities | (860,076) | (680,805) |
Purchases of equity securities | (10,376) | (27,402) |
Purchases of other invested assets | 0 | (70,000) |
Net cash provided by (used for) investing activities | 100,994 | (57,824) |
Cash flows from financing activities: | ||
Distributions paid to common shareholders | (7,255) | (7,219) |
Distributions paid to preferred shareholders | (220) | (220) |
Purchases of class A common shares | (414) | (479) |
Redemption of subordinated notes | (130,000) | 0 |
Net cash used for financing activities | (137,889) | (7,918) |
Net change in cash and cash equivalents | (18,436) | (18,254) |
Cash and cash equivalents at beginning of period | 78,278 | 67,359 |
Cash and cash equivalents at end of period | $ 59,842 | $ 49,105 |
Principles of Consolidation and
Principles of Consolidation and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principles of Consolidation and Basis of Presentation | 1. Principles of Consolidation and Basis of Presentation Global Indemnity Group, LLC (“Global Indemnity” or “the Company”), a Delaware limited liability company formed on June 23, 2020, replaced Global Indemnity Limited, incorporated in the Cayman Islands as an exempted company with limited liability, as the ultimate parent company of the Global Indemnity group of companies as a result of a redomestication transaction completed on August 28, 2020. Global Indemnity Group, LLC’s class A common shares are publicly traded on the New York Stock Exchange under the ticker symbol GBLI. Global Indemnity Group, LLC’s predecessors have been publicly traded since 2003. See Note 2 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2021 Annual Report on Form 10-K for additional information regarding the redomestication. On August 8, 2022, the Company sold the renewal rights related to all business lines within its Farm, Ranch & Stable segment for business written on or after August 8, 2022 to Everett Cash Mutual Insurance Company. During the 2 nd Global Indemnity Group, LLC is a holding company that is classified as a publicly traded partnership for U.S. federal income tax purposes and meets the qualifying income exception to maintain partnership status. Global Indemnity Group, LLC owns all shares of its direct and indirect subsidiaries, including those of its insurance companies: United National Insurance Company, Diamond State Insurance Company, Penn-America Insurance Company, Penn-Star Insurance Company, Penn-Patriot Insurance Company, and American Reliable Insurance Company. The insurance companies’ primary activity is providing insurance products across a distribution network that includes binding authority, program, brokerage and reinsurance. The insurance companies are managed through business, certain business within Property Brokerage, property and catastrophe reinsurance treaties , Farm, Ranch, & Stable business, and specialized insurance products for the equine mortality and equine major medical industry . Collectively, the Company’s insurance subsidiaries are licensed in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The Commercial Specialty segment comprises the Company’s Insurance Operations (“Insurance Operations”). The interim consolidated financial statements are unaudited, but 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. The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and six months ended June 30, 2022 and 2021 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2021 Annual Report on Form 10-K. The consolidated financial statements include the accounts of Global Indemnity Group, LLC and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2022 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 2 . Investments The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of June 30, 2022 and December 31, 2021: (Dollars in thousands) Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of June 30, 2022 Fixed maturities: U.S. treasuries $ 242,102 $ — $ 301 $ (2,076 ) $ 240,327 Obligations of states and political subdivisions 33,397 — 32 (1,055 ) 32,374 Mortgage-backed securities 64,187 — 428 (2,776 ) 61,839 Asset-backed securities 143,274 — 144 (5,888 ) 137,530 Commercial mortgage-backed securities 112,660 — 19 (3,781 ) 108,898 Corporate bonds 343,252 — 23 (11,904 ) 331,371 Foreign corporate bonds 212,323 — 1 (6,534 ) 205,790 Total fixed maturities $ 1,151,195 $ — $ 948 $ (34,014 ) $ 1,118,129 (Dollars in thousands) Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of December 31, 2021 Fixed maturities: U.S. treasuries $ 149,934 $ — $ 603 $ (419 ) $ 150,118 Agency obligations 5,697 — 1 (68 ) 5,630 Obligations of states and political subdivisions 53,637 — 1,385 (301 ) 54,721 Mortgage-backed securities 250,007 — 2,618 (2,284 ) 250,341 Asset-backed securities 172,916 — 700 (974 ) 172,642 Commercial mortgage-backed securities 135,017 — 2,503 (627 ) 136,893 Corporate bonds 288,866 — 5,571 (2,054 ) 292,383 Foreign corporate bonds 137,672 — 2,370 (904 ) 139,138 Total fixed maturities $ 1,193,746 $ — $ 15,751 $ (7,631 ) $ 1,201,866 As of June 30, 2022 and December 31, 2021, the Company’s investments in equity securities consist of the following: (Dollars in thousands) June 30, 2022 December 31, 2021 Common stock $ 878 $ 75,987 Preferred stock 16,992 23,991 Total $ 17,870 $ 99,978 Excluding U.S. treasuries, limited liability companies, and limited partnerships, the Company did not hold any debt or equity investments in a single issuer in excess of 2.3% and 2.0% of shareholders' equity at June 30, 2022 and December 31, 2021, respectively. The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at June 30, 2022, 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 $ 57,798 $ 57,486 Due in one year through five years 722,611 707,206 Due in five years through ten years 36,200 32,948 Due in ten years through fifteen years 304 277 Due after fifteen years 14,161 11,945 Mortgage-backed securities 64,187 61,839 Asset-backed securities 143,274 137,530 Commercial mortgage-backed securities 112,660 108,898 Total $ 1,151,195 $ 1,118,129 The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of June 30, 2022. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 4. Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasuries $ 187,603 $ (2,019 ) $ 643 $ (57 ) $ 188,246 $ (2,076 ) Obligations of states and political subdivisions 28,204 (1,055 ) — — 28,204 (1,055 ) Mortgage-backed securities 44,366 (2,589 ) 3,008 (187 ) 47,374 (2,776 ) Asset-backed securities 97,049 (4,602 ) 20,929 (1,286 ) 117,978 (5,888 ) Commercial mortgage-backed securities 95,440 (3,743 ) 2,062 (38 ) 97,502 (3,781 ) Corporate bonds 318,485 (11,005 ) 6,213 (899 ) 324,698 (11,904 ) Foreign corporate bonds 200,161 (6,406 ) 1,137 (128 ) 201,298 (6,534 ) Total fixed maturities $ 971,308 $ (31,419 ) $ 33,992 $ (2,595 ) $ 1,005,300 $ (34,014 ) The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2021. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 4. Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasuries $ 114,894 $ (390 ) $ 970 $ (29 ) $ 115,864 $ (419 ) Agency obligations 5,380 (68 ) — — 5,380 (68 ) Obligations of states and political subdivisions 13,346 (301 ) — — 13,346 (301 ) Mortgage-backed securities 143,674 (2,222 ) 3,009 (62 ) 146,683 (2,284 ) Asset-backed securities 102,309 (703 ) 10,662 (271 ) 112,971 (974 ) Commercial mortgage-backed securities 50,448 (466 ) 1,286 (161 ) 51,734 (627 ) Corporate bonds 129,146 (1,954 ) 2,633 (100 ) 131,779 (2,054 ) Foreign corporate bonds 67,915 (893 ) 412 (11 ) 68,327 (904 ) Total fixed maturities $ 627,112 $ (6,997 ) $ 18,972 $ (634 ) $ 646,084 $ (7,631 ) The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each available for sale debt security in an unrealized loss position to assess whether the decline in fair value below amortized cost basis has resulted from a credit loss or other factors. In assessing whether a credit loss exists, the Company compares the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis of the security, a credit loss exists and an allowance for expected credit losses is recorded. Subsequent changes in the allowances are recorded in the period of change as either credit loss expense or reversal of credit loss expense. Any impairments related to factors other than credit losses and the intent to sell are recorded through other comprehensive income, net of taxes. For fixed maturities, the factors considered in reaching the conclusion that a credit loss exists include, among others, whether: (1) the extent to which the fair value is less than the amortized cost basis; (2) the issuer is in financial distress; (3) the investment is secured; (4) a significant credit rating action occurred; (5) scheduled interest payments were delayed or missed; (6) changes in laws or regulations have affected an issuer or industry; (7) 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; (8) the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized; and (9) changes in US Treasury rates and/or credit spreads since original purchase to identify whether the unrealized loss is simply due to interest rate movement. 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, any allowance for expected credit losses is written off and the amortized cost basis is written down to the fair value of the fixed maturity security with any incremental impairment reported in earnings. That new amortized cost basis shall not be adjusted for subsequent recoveries in fair value. The Company elected the practical expedient to exclude accrued interest from both the fair value and the amortized cost basis of the available for sale debt securities for the purposes of identifying and measuring an impairment and to not measure an allowance for expected credit losses for accrued interest receivables. Accrued interest receivable is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default on payment. The Company made an accounting policy election to present the accrued interest receivable balance with other assets on the Company’s consolidated statements of financial position. Accrued interest receivable related to fixed maturities was $6.2 million and $5.2 million as of June 30, 2022 and December 31, 2021, respectively. 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. treasuries – As of June 30, 2022, gross unrealized losses related to U.S. treasuries were $2.076 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, 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. Based on the analysis performed, the Company did not recognize a credit loss on U.S. treasuries during the period. Obligations of states and political subdivisions – As of June 30, 2022, gross unrealized losses related to obligations of states and political subdivisions were $1.055 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, elements that may influence the performance of the municipal bond market are considered in evaluating these securities such as 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. Based on the analysis performed, the Company did not recognize a credit loss on obligations of states and political subdivisions during the period. Mortgage-backed securities (“MBS”) – As of June 30, 2022, gross unrealized losses related to mortgage-backed securities were $2.776 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, 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 loan to value, 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. Based on the analysis performed, the Company did not recognize a credit loss on mortgage-backed securities during the period. Asset backed securities (“ABS”) - As of June 30, 2022, gross unrealized losses related to asset backed securities were $5.888 million. The weighted average credit enhancement for the Company’s asset backed portfolio is 32.2. This represents the percentage of pool losses that can occur before an asset backed security will incur its first dollar of principal losses. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, 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. Based on the analysis performed, the Company did not recognize a credit loss on asset backed securities during the period. Commercial mortgage-backed securities (“CMBS”) - As of June 30, 2022, gross unrealized losses related to the CMBS portfolio were $3.781 million. The weighted average credit enhancement for the Company’s CMBS portfolio is 47.5. This represents the percentage of pool losses that can occur before a commercial mortgage-backed security will incur its first dollar of principal loss. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, 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. Based on the analysis performed, the Company did not recognize a credit loss on commercial mortgage-backed securities during the period. Corporate bonds - As of June 30, 2022, gross unrealized losses related to corporate bonds were $11.904 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, 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. Based on the analysis performed, the Company did not recognize a credit loss on corporate bonds during the period. Foreign bonds – As of June 30, 2022, gross unrealized losses related to foreign bonds were $6.534 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, 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. Based on the analysis performed, the Company did not recognize a credit loss on foreign bonds during the period. The Company has evaluated its investment portfolio and has determined that an allowance for expected credit losses on its investments is not required. The Company recorded the following impairments on its investment portfolio for the quarters and six months ended June 30, 2022 and 2021 and are related to securities in an unrealized loss position where the Company had an intent to sell the securities: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Fixed maturities: Impairment related to intent to sell (680 ) — (26,205 ) — Total $ (680 ) $ — $ (26,205 ) $ — In response to a rising interest rate environment, the Company took action early in April 2022 to shorten the duration of its fixed maturities portfolio. The Company identified fixed maturities securities with a weighted average life of five years or greater as having an intent to sell. Most of the proceeds from the sale of these securities were reinvested into fixed income investments with maturities of two years and less. Accumulated Other Comprehensive Income (Loss), Net of Tax Accumulated other comprehensive income, net of tax, as of June 30, 2022 and December 31, 2021 was as follows: (Dollars in thousands) June 30, 2022 December 31, 2021 Net unrealized gains (losses) from: Fixed maturities $ (33,066 ) $ 8,120 Foreign currency fluctuations (291 ) (145 ) Deferred taxes 6,732 (1,571 ) Accumulated other comprehensive income (loss), net of tax $ (26,625 ) $ 6,404 The following tables present the changes in accumulated other comprehensive income, net of tax, by components, for the quarters and six months ended June 30, 2022 and 2021: Quarter Ended June 30, 2022 (Dollars In Thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Beginning balance, net of tax $ (12,769 ) $ (3 ) $ (12,772 ) Other comprehensive income (loss) before reclassification, before tax (26,518 ) (287 ) (26,805 ) Amounts reclassified from accumulated other comprehensive income, before tax 9,317 — 9,317 Other comprehensive income (loss), before tax (17,201 ) (287 ) (17,488 ) Income tax benefit 3,575 60 3,635 Ending balance, net of tax $ (26,395 ) $ (230 ) $ (26,625 ) Quarter Ended June 30, 2021 (Dollars In Thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ 9,819 $ 34 $ 9,853 Other comprehensive income before reclassification, before tax 11,797 (84 ) 11,713 Amounts reclassified from accumulated other comprehensive income, before tax (453 ) — (453 ) Other comprehensive income, before tax 11,344 (84 ) 11,260 Income tax (expense) benefit (2,162 ) 17 (2,145 ) Ending balance, net of tax $ 19,001 $ (33 ) $ 18,968 Six Months Ended June 30, 2022 (Dollars In Thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ 6,519 $ (115 ) $ 6,404 Other comprehensive income before reclassification, before tax (79,267 ) (146 ) (79,413 ) Amounts reclassified from accumulated other comprehensive income, before tax 38,081 — 38,081 Other comprehensive income, before tax (41,186 ) (146 ) (41,332 ) Income tax benefit 8,272 31 8,303 Ending balance, net of tax $ (26,395 ) $ (230 ) $ (26,625 ) Six Months Ended June 30, 2021 (Dollars In Thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ 34,181 $ 127 $ 34,308 Other comprehensive income before reclassification, before tax (19,389 ) (202 ) (19,591 ) Amounts reclassified from accumulated other comprehensive income, before tax 706 — 706 Other comprehensive income, before tax (18,683 ) (202 ) (18,885 ) Income tax benefit 3,503 42 3,545 Ending balance, net of tax $ 19,001 $ (33 ) $ 18,968 The reclassifications out of accumulated other comprehensive income for the quarters and six months ended June 30, 2022 and 2021 were as follows: Amounts Reclassified from Accumulated Other Comprehensive Income (Dollars in thousands) Quarters Ended June 30, Details about Accumulated Other Comprehensive Income Components Affected Line Item in the Consolidated Statements of Operations 2022 2021 Unrealized gains and losses on available for sale securities Other net realized investment (gains) losses $ 9,317 $ (453 ) Income tax expense (benefit) (1,440 ) 158 Total reclassifications, net of tax $ 7,877 $ (295 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Dollars in thousands) Six Months Ended June 30, Details about Accumulated Other Comprehensive Income Components Affected Line Item in the Consolidated Statements of Operations 2022 2021 Unrealized gains and losses on available for sale securities Other net realized investment (gains) losses $ 38,081 $ 706 Income tax expense (benefit) (7,119 ) (185 ) Total reclassifications, net of tax $ 30,962 $ 521 Net Realized Investment Gains (Losses) The components of net realized investment gains (losses) for the quarters and six months ended June 30, 2022 and 2021 were as follows: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Fixed maturities: Gross realized gains $ 456 $ 2,300 $ 662 $ 5,678 Gross realized losses (9,773 ) (1,847 ) (38,743 ) (6,384 ) Net realized gains (losses) (9,317 ) 453 (38,081 ) (706 ) Equity securities: Gross realized gains 2 4,338 1,806 8,784 Gross realized losses (2,417 ) (943 ) (5,566 ) (1,021 ) Net realized gains (losses) (2,415 ) 3,395 (3,760 ) 7,763 Derivatives: Gross realized gains 2,872 1,366 8,960 3,719 Gross realized losses (1,056 ) (1,381 ) (2,420 ) (3,124 ) Net realized gains (losses) (1) 1,816 (15 ) 6,540 595 Total net realized investment gains (losses) $ (9,916 ) $ 3,833 $ (35,301 ) $ 7,652 (1) Includes periodic net interest settlements related to the derivatives of $1.1 million and $1.4 million for the quarters ended June 30, 2022 and 2021, respectively, and $2.5 million and $2.8 million for the six months ended June 30, 2022 and 2021, respectively. The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of June 30, 2022 and 2021: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Net gains (losses) recognized during the period on equity securities $ (2,415 ) $ 3,395 $ (3,760 ) $ 7,763 Less: net gains (losses) recognized during the period on equity securities sold during the period (498 ) 1,429 10,616 2,805 Unrealized gains (losses) recognized during the reporting period on equity securities $ (1,917 ) $ 1,966 $ (14,376 ) $ 4,958 The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the six months ended June 30, 2022 and 2021 were as follows: Six Months Ended June 30, (Dollars in thousands) 2022 2021 Fixed maturities $ 829,205 $ 636,040 Equity securities 88,726 42,821 Net Investment Income The sources of net investment income for the quarters and six months ended June 30, 2022 and 2021 were as follows: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Fixed maturities $ 7,467 $ 6,648 $ 13,871 $ 13,475 Equity securities 275 618 609 1,293 Cash and cash equivalents 99 214 131 264 Other invested assets (5,300 ) 3,788 (4,874 ) 6,785 Total investment income 2,541 11,268 9,737 21,817 Investment expense (611 ) (635 ) (1,215 ) (1,348 ) Net investment income $ 1,930 $ 10,633 $ 8,522 $ 20,469 The Company’s total investment return on a pre-tax basis for the quarters and six months ended June 30, 2022 and 2021 were as follows: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Net investment income $ 1,930 $ 10,633 $ 8,522 $ 20,469 Net realized investment gains (losses) (9,916 ) 3,833 (35,301 ) 7,652 Change in unrealized holding gains (losses) (17,488 ) 11,260 (41,332 ) (18,885 ) Net realized and unrealized investment returns (27,404 ) 15,093 (76,633 ) (11,233 ) Total investment return $ (25,474 ) $ 25,726 $ (68,111 ) $ 9,236 Total investment return % (1) (1.8 %) 1.8 % (4.8 %) 0.6 % Average investment portfolio (2) $ 1,395,519 $ 1,452,754 $ 1,429,227 $ 1,463,027 (1) Not annualized. ( 2 ) Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period. As of June 30, 2022 and December 31, 2021, the Company did not own any fixed maturity securities that were non-income producing for the preceding twelve months. Insurance Enhanced Asset-Backed and Credit Securities As of June 30, 2022, the Company held insurance enhanced bonds with a market value of approximately $ million The insurance enhanced bonds are comprised of $8.0 of municipal bonds, $4.8 of commercial mortgage-backed securities, and 7.8 of collateralized mortgage obligations. The financial guarantors of the Company’s $20.6 million of insurance enhanced commercial-mortgage-backed, municipal securities, and collateralized mortgage obligations include Assured Guaranty Corporation ($6.5), Federal Home Loan Mortgage Corporation ($12.6), and Ambac Financial Group ($1.5). 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 June 30, 2022. Bonds Held on Deposit Certain cash balances, cash equivalents, 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. The fair values were as follows as of June 30, 2022 and December 31, 2021: Estimated Fair Value (Dollars in thousands) June 30, 2022 December 31, 2021 On deposit with governmental authorities $ 25,304 $ 26,093 Held in trust pursuant to third party requirements 110,768 119,513 Letter of credit held for third party requirements 1,187 2,512 Total $ 137,259 $ 148,118 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 four 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 carrying value of one of the Company’s VIE’s, which invests in distressed securities and assets, was $5.0 million and $8.6 million as of June 30, 2022 and December 31, 2021, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $19.2 million and $22.8 million at June 30, 2022 and December 31, 2021, respectively. The carrying value of a second VIE that also invests in distressed securities and assets was $0.3 million at June 30, 2022 and December 31, 2021, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $17.3 million at June 30, 2022 and December 31, 2021, respectively. The carrying value and maximum exposure to loss of a third VIE that invests in Real Estate Investment Trust (“REIT”) qualifying assets was $9.6 million and $11.7 million as of June 30, 2022 and December 31, 2021, respectively. The carrying value and maximum exposure to loss of a fourth VIE, which invests in a broad portfolio of non-investment grade loans, was $99.6 million and $106.2 million as of June 30, 2022 and December 31, 2021, respectively. The Company’s investment in VIEs is included in other invested assets on the consolidated balance sheets with changes in carrying value recorded in the consolidated statements of operations. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 3 . 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. The Company has also used 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. When using derivatives, the Company posts collateral and settles variation margin in cash on a daily basis equal to the amount of the derivatives’ change in value. 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 June 30, 2022 and December 31, 2021: (Dollars in thousands) June 30, 2022 December 31, 2021 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 $ 213,022 $ 565 $ 213,022 $ (8,395 ) Total (1) $ 213,022 $ 565 $ 213,022 $ (8,395 ) (1) The derivatives are held by GBLI Holdings, LLC and are guaranteed by Global Indemnity Group, LLC 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 quarters and six months ended June 30, 2022 and 2021: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) Consolidated Statements of Operations Line 2022 2021 2022 2021 Interest rate swap agreements Net realized investment gains (losses) $ 1,816 $ (15 ) $ 6,540 $ 914 Futures contracts on bonds Net realized investment gains (losses) — — — (319 ) Total $ 1,816 $ (15 ) $ 6,540 $ 595 As of June 30, 2022 and December 31, 2021, the Company is due $2.0 million and $1.8 million, respectively, for funds it needed to post to execute the swap transaction and $2.4 million and $9.8 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. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4 . 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 June 30, 2022 and December 31, 2021 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value Measurements As of June 30, 2022 (Dollars in thousands) Level 1 Level 2 Level 3 Total Fixed maturities: U.S. treasuries $ 240,327 $ — $ — $ 240,327 Obligations of states and political subdivisions — 32,374 — 32,374 Mortgage-backed securities — 60,868 971 61,839 Commercial mortgage-backed securities — 108,898 — 108,898 Asset-backed securities — 136,605 925 137,530 Corporate bonds — 329,886 1,485 331,371 Foreign corporate bonds — 205,699 91 205,790 Total fixed maturities 240,327 874,330 3,472 1,118,129 Equity securities — 16,992 878 17,870 Derivative instruments — 565 — 565 Total assets measured at fair value $ 240,327 $ 891,887 $ 4,350 $ 1,136,564 Fair Value Measurements As of December 31, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasuries $ 150,118 $ — $ — $ 150,118 Agency obligations — 5,630 — 5,630 Obligations of states and political subdivisions — 54,721 — 54,721 Mortgage-backed securities — 250,341 — 250,341 Commercial mortgage-backed securities — 136,893 — 136,893 Asset-backed securities — 171,686 956 172,642 Corporate bonds — 290,807 1,576 292,383 Foreign corporate bonds — 139,138 — 139,138 Total fixed maturities 150,118 1,049,216 2,532 1,201,866 Equity securities 75,750 23,991 237 99,978 Total assets measured at fair value $ 225,868 $ 1,073,207 $ 2,769 $ 1,301,844 Liabilities: Derivative instruments $ — $ 8,395 $ — $ 8,395 Total liabilities measured at fair value $ — $ 8,395 $ — $ 8,395 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 of fixed maturities, equity 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. The investments classified as Level 3 in the above table consist of fixed maturities and equity securities with unobservable inputs. The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the quarters and six months ended June 30, 2022 and 2021: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Beginning balance $ 4,288 $ 2,203 $ 2,769 $ — Total gains (realized / unrealized): Included in accumulated other comprehensive income 23 7 15 (32 ) Included in earnings attributable to realized (102 ) — (170 ) — Transfers into level 3 607 702 857 702 Transfers out of level 3 — (1,720 ) — (1,720 ) Amortization of bond premium and discount, net 2 — 2 — Purchases 55 43 1,479 2,285 Sales (523 ) — (602 ) — Ending balance $ 4,350 1,235 $ 4,350 1,235 Gains (losses) included in earnings attributable to the change in unrealized gains (losses) related to assets still held at end of reporting period $ (9 ) $ — $ (14 ) $ — For the Company’s material debt arrangements, the current fair value of the Company’s debt at June 30, 2022 and December 31, 2021 was as follows: June 30, 2022 December 31, 2021 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value 7.875% Subordinated Notes due 2047 (1) $ — $ — $ 126,430 $ 129,238 Total $ — $ — $ 126,430 $ 129,238 (1) As of December 31, 2021, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $3.6 million. In April 2022, the Company redeemed all of its outstanding 7.875% subordinated notes due 2047 and unamortized debt issuance cost of $3.5 million was written off included in the consolidated statements of operations as loss on extinguishment of debt. The subordinated notes due 2047 were publicly traded instruments which were classified as Level 1 in the fair value hierarchy. Fair Value of Alternative Investments Other invested assets consist of limited liability companies and limited partnerships whose carrying value approximates fair value. The following table provides the fair value and future funding commitments related to these investments at June 30, 2022 and December 31, 2021. June 30, 2022 December 31, 2021 (Dollars in thousands) Fair Value Future Funding Commitment Fair Value Future Funding Commitment European Non-Performing Loan Fund, LP (1) $ 5,012 $ 14,214 $ 8,636 $ 14,214 Distressed Debt Fund, LP (2) 330 17,000 349 17,000 Mortgage Debt Fund, LP (3) 9,592 — 11,707 — Credit Fund, LLC (4) 99,608 — 106,162 — Global Debt Fund, LP (5) 25,655 — 25,797 — Total $ 140,197 $ 31,214 $ 152,651 $ 31,214 ( 1 ) 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. ( 2 ) 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. ( 3 ) 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. (4) This limited liability company invests in a broad portfolio of non-investment grade loans, secured and unsecured corporate debt, credit default swaps, reverse repurchase agreements and synthetic indices. The Company does have the ability to sell its interest by providing notice to the fund. ( 5 ) This limited partnership invests in performing, stressed or distressed securities and loans across the global fixed income markets. 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. Limited Liability Companies and Limited Partnerships with ownership interest exceeding 3% The Company uses the equity method to account for investments in limited liability companies and limited partnerships where its ownership interest exceeds 3%. The equity method of accounting for an investment in limited liability companies and limited partnerships requires that its cost basis be updated to account for the income or loss earned on the investment. In the Fair Value of Alternative Investments table above, all of the investments, except for the Credit Fund, LLC, are booked on a one quarter lag due to non-availability of data at the time the financial statements are prepared. Information for the Credit Fund, LLC is received on a timely basis and is included in current results. The investment income (loss) associated with the limited liability companies and limited partnerships whose ownership interest exceeds 3% is reflected in the consolidated statements of operations in the amounts of ($5.3) million and $3.8 million for the quarters ended June 30, 2022 and 2021, respectively, and ($5.4) million and $6.8 million for the six months ended June 30, 2022 and 2021, respectively. Pricing The Company’s pricing vendors provide prices for all investment categories except for investments in limited liability companies and limited partnerships. 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 collateralized 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 the quarters and six months ended June 30, 2022 and 2021, the Company has not adjusted quotes or prices obtained from the pricing vendors. |
Allowance for Expected Credit L
Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables | 6 Months Ended |
Jun. 30, 2022 | |
Allowance For Credit Loss [Abstract] | |
Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables | 5 . Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables For premium receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, direct placement with collection agencies, solvency of insured or agent, terminated agents, and other relevant factors. The following table is an analysis of the allowance for expected credit losses related to the Company's premium receivables for the quarters and six months ended June 30, 2022 and 2021: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Beginning balance $ 2,937 $ 2,772 $ 2,996 $ 2,900 Current period provision for expected credit losses 536 172 619 260 Write-offs (554 ) (122 ) (696 ) (338 ) Ending balance $ 2,919 $ 2,822 $ 2,919 $ 2,822 For reinsurance receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, disputes, applicable coverage defenses, insolvent reinsurers, financial strength of solvent reinsurers based on AM Best Ratings and other relevant factors. The following table is an analysis of the allowance for expected credit losses related to the Company's reinsurance receivables for the quarters and six months ended June 30, 2022 and 2021: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Beginning balance $ 8,992 $ 8,992 $ 8,992 $ 8,992 Current period provision for expected credit losses — — — — Write-offs — — — — Recoveries of amounts previously written off — — — — Ending balance $ 8,992 $ 8,992 $ 8,992 $ 8,992 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6 . Income Taxes Global Indemnity Group, LLC is a publicly traded partnership for U.S. federal income tax purposes and meets the qualifying income exception to maintain partnership status. As a publicly traded partnership, Global Indemnity Group, LLC is generally not subject to federal income tax and most state income taxes. However, income earned by the subsidiaries of Global Indemnity Group, LLC is subject to corporate tax in the United States and certain foreign jurisdictions. As of June 30, 2022, the statutory income tax rates of the countries where the Company conducts or conducted business are 21% in the United States, 0% in Bermuda, 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 (loss) before income taxes is derived from its U.S. subsidiaries for the quarters and six months ended June 30, 2022 and 2021. The following table summarizes the components of income tax expense (benefit): Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Deferred income tax expense (benefit): U.S. Federal $ (626 ) $ 844 $ (4,039 ) $ 641 Total deferred income tax expense (benefit) (626 ) 844 (4,039 ) 641 Total income tax expense (benefit) $ (626 ) $ 844 $ (4,039 ) $ 641 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: Quarters Ended June 30, 2022 2021 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average tax rate $ (2,686 ) 21.0 % $ 1,516 21.0 % Adjustments: Dividend exclusion (24 ) 0.2 (19 ) (0.3 ) Parent (income) loss treated as partnership for tax 1,827 (14.3 ) (819 ) (11.3 ) Other 257 (2.0 ) 166 2.3 Effective income tax expense (benefit) $ (626 ) 4.9 % $ 844 11.7 % The effective income tax benefit rate for the quarter ended June 30, 2022 was 4.9% compared to an effective income tax expense rate of 11.7% for the quarter ended June 30, 2021. The difference between 2022 and 2021 is primarily due to a change in income or loss at the parent company which is treated as a partnership for tax. Six Months Ended June 30, 2022 2021 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average tax rate $ (6,505 ) 21.0 % $ 2,632 21.0 % Adjustments: Dividend exclusion (46 ) 0.1 (36 ) (0.3 ) Parent (income) loss treated as partnership for tax 2,070 (6.7 ) (2,186 ) (17.4 ) Other 442 (1.4 ) 231 1.8 Effective income tax expense (benefit) $ (4,039 ) 13.0 % $ 641 5.1 % The effective income tax benefit rate for the six months ended June 30, 2022 was 13.0% compared to an effective income tax expense rate of 5.1% for the six months ended June 30, 2021. The difference between 2022 and 2021 is primarily due to a change in income or loss at the parent company which is treated as a partnership for tax. The Company has a net operating loss (“NOL”) carryforward of $28.0 million as of June 30, 2022, which begins to expire in 2036 based on when the original NOL was generated. The Company’s NOL carryforward as of December 31, 2021 was $28.6 million. As of June 30, 2022, the Company has a Section 163(j) (“163(j)”) carryforward of $3.5 million which can be carried forward indefinitely. The 163(j) carryforward relates to the limitation on the deduction for business interest expense paid or accrued. |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 6 Months Ended |
Jun. 30, 2022 | |
Insurance [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | 7 . Liability for Unpaid Losses and Loss Adjustment Expenses Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Balance at beginning of period $ 770,332 $ 675,908 $ 759,904 $ 662,811 Less: Ceded reinsurance receivables 93,194 79,421 94,443 82,158 Net balance at beginning of period 677,138 596,487 665,461 580,653 Incurred losses and loss adjustment expenses related to: Current year 96,189 85,409 183,947 179,603 Prior years (3,571 ) 5,529 (6,634 ) 2,118 Total incurred losses and loss adjustment expenses 92,618 90,938 177,313 181,721 Paid losses and loss adjustment expenses related to: Current year 29,079 38,558 42,394 60,277 Prior years 30,201 38,400 89,904 91,630 Total paid losses and loss adjustment expenses 59,280 76,958 132,298 151,907 Net balance at end of period 710,476 610,467 710,476 610,467 Plus: Ceded reinsurance receivables 94,185 87,151 94,185 87,151 Balance at end of period $ 804,661 $ 697,618 $ 804,661 $ 697,618 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 the second quarter of 2022, the Company decreased its prior accident year loss reserves by $3.6 million, which consisted of a $0.3 million increase related to Commercial Specialty, a $1.2 million decrease related to Reinsurance Operations, and a $2.6 million decrease related to Exited Lines. The $0.3 million increase of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • Property: A $0.9 million decrease • General Liability: A $1.3 million increase reflects higher than expected claims severity in accident years prior to 2005, 2016, 2017, 2019 and 2020 accident years, partially offset by decreases in the 2010 through 2015, 2018 and 2021 accident years. • Professional: A $0.1 million decrease primarily in the 2020 accident year. The $1.2 million reduction of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following: • Professional: A $1.2 million decrease was recognized in the 2016 accident year reflecting a reduction in the ultimate for the claims-made segment; the inception-to-date case incurred remains zero in this year. The $2.6 million reduction of prior accident year loss reserves related to Exited Lines consisted of the following: • Property: A $0.5 million decrease reflects a $0.3 million reduction primarily in the Property Brokerage lines with decreases in the 2011 and 2018 through 2021 accident years, partially offset by increases in the 2016 and 2017 accident years as well as a $0.2 million reduction primarily due to lower than expected claims severity in the 2019 and 2020 accident years, partially offset by an increase in the 2021 accident year in the Farm, Ranch & Stable business lines. • Reinsurance: A $2.1 million decrease primarily in the 2017 through the 2021 accident years based on the reported information from cedants. During the second quarter of 2021, the Company increased its prior accident year loss reserves by $5.5 million, which consisted of a $0.5 million decrease related to Commercial Specialty, a less than $0.1 million decrease related to Reinsurance Operations, and a $6.1 million increase related to Exited Lines. The $0.5 million decrease of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • Property: A $0.5 million increase primarily in commercial lines. • General Liability: A $0.7 million decrease reflects a reduction of $0.9 million in the 2000 accident year from a runoff reserve category as well as other decreases mainly resulting from lower than anticipated claims severity in the 2007, 2008, 2013, 2014 and 2019 accident years partially offset by increases in the 2012, 2016 through 2018 and 2020 accident years. • Professional: A $0.3 million decrease primarily in the 2019 and 2020 accident years mainly reflecting lower than anticipated claims severity. The $6.1 million increase in prior accident year loss reserves related to Exited Lines primarily consisted of the following: • Property: A $6.5 million increase primarily in the 2018 accident year reflects an increase in the estimated ultimate for Hurricane Michael; the increase recognizes case incurred emergence on a Property Brokerage claim. • General Liability: A $0.1 million reduction primarily reflects a reduction in the 2017 accident year, mostly offset by an increase in the 2018 accident year. • Reinsurance: A $0.3 million decrease in the property lines mainly in the 2017 through 2020 accident years based on the reported information from cedants. During the first six months of 2022, the Company decreased its prior accident year loss reserves by $6.6 million, which consisted of a $0.5 million increase related to Commercial Specialty, a $1.2 million decrease related to Reinsurance Operations, and a $6.0 million decrease related to Exited Lines. The $0.5 million increase of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • Property: A $0.7 million decrease primarily recognizes lower than expected claims severity in the 2016, 2018 and 2021 accident years, partially offset by increases in the 2015, 2017, 2019 and 2020 accident years. • General Liability: A $1.5 million increase reflects higher than expected claims severity in accident years prior to 2005, 2010, 2016, 2017, 2019 and 2020 accident years, partially offset by decreases in the 2006, 2007, 2011 through 2015, 2018 and 2021 accident years. • Professional: A $0.2 million decrease primarily in the 2006, 2019 and 2020 accident years, partially offset by an increase in the 2021 accident year. The $1.2 million reduction of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following: • Professional: A $1.2 million decrease was recognized in the 2016 accident year reflecting a reduction in the ultimate for the claims-made segment; the inception-to-date case incurred remains zero in this year. The $6.0 million reduction of prior accident year loss reserves related to Exited Lines primarily consisted of the following: • Property: A $1.1 million decrease primarily resulted from a $0.4 million reduction in Property Brokerage with decreases in the 2011 and 2018 through 2021 accident years, partially offset by increases in the 2016 and 2017 accident years plus a $0.4 million decrease in Specialty Property, mainly in the 2017, 2018, 2020 and 2021 accident years, partially offset by an increase in the 2019 accident year. In addition, there was a $0.3 million reduction which primarily reflects lower than expected claims severity in the 2018 through 2020 accident years, partially offset by an increase in the 2021 accident year in the Farm, Ranch & Stable business lines. • Reinsurance: A $4.3 million decrease primarily in the 2016 through the 2021 accident years based on reported information from the cedants. • General Liability: A $0.6 million reduction in the 2016, 2017, 2019 and 2021 accident years. During the first six months of 2021, the Company increased its prior accident year loss reserves by $2.1 million, which consisted of a $3.1 million decrease related to Commercial Specialty, a less than $0.1 million decrease related to Reinsurance Operations, and a $5.3 million increase related to Exited Lines. The $3.1 million decrease in prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • Property: A $1.9 million decrease recognizes lower than expected claims severity in the 2017, 2019, and 2020 accident years, partially offset by an increase in the 2016 accident year. • General Liability: A $0.8 million reduction reflects a decrease of $0.9 million in the 2000 accident year from a runoff reserve category as well as other decreases mainly resulting from lower than anticipated claims severity in the 2007, 2008, 2011 and 2013 through 2016 accident years partially offset by increases in the 2012, 2017 and 2018 accident years. • Professional: A $0.4 million decrease primarily in the 2019 and 2020 accident years mainly reflecting lower than anticipated claims severity. The $5.3 million increase in prior accident year loss reserves related to Exited Lines primarily consisted of the following: • General Liability: A $1.2 million reduction primarily reflects decreases in the 2015 through 2018 accident years partially offset by an increase in the 2007 accident year. • Property: A $7.4 million increase reflects a $8.2 million increase in the 2018 accident year primarily due to an increase in the estimated ultimate for Hurricane Michael which recognizes case incurred emergence on a Property Brokerage claim and a $0.8 million increases in the 2018 and 2020 accident years mainly due to higher than anticipated claims severity. These increases were partially offset by a subrogation recoveries of $1.1 million in the catastrophe reserve category from the California Thomas wildfire loss in the 2017 accident year and a decrease of $0.5 million in the 2019 accident year primarily recognizing lower than expected claims severity. • Reinsurance: A $0.9 million |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 8 . Debt The Company’s outstanding debt consisted of the following at June 30, 2022 and December 31, 2021: (Dollars in thousands) June 30, 2022 December 31, 2021 7.875% Subordinated Notes due 2047 $ — $ 126,430 Total $ — $ 126,430 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 2.3% and 0.8% at June 30, 2022 and December 31, 2021, 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. The Company did not have any securities that were deposited as collateral at June 30, 2022 or December 31, 2021. 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 Company did not have any amounts outstanding on the margin borrowing facility as of June 30, 2022 or December 31, 2021. The Company did not incur any interest expense related to the Margin Borrowing Facility for the quarters and six months ended June 30, 2022 and 2021. 7.875% Subordinated Notes due 2047 (the “2047 Notes”) On April 15, 2022, the Company redeemed the entire $130.0 million in aggregate principal amount of the outstanding 2047 Notes plus accrued and unpaid interest on the 2047 Notes redeemed to, but not including the Redemption Date of April 15, 2022. In connection with the redemption, the Company wrote off deferred issuance costs of $3.5 million which was recognized as a loss on extinguishment of debt in its consolidated statements of operations for the quarter and six months ended June 30, 2022. Interest expense, including amortization of deferred issuance costs through the date of redemption, recognized on the 2047 Notes was $0.4 million and $2.6 million for each of the quarters ended June 30, 2022 and 2021, respectively, and $3.0 million and $5.2 million for the six months ended June 30, 2022 and 2021, respectively. In connection with the redemption of the 2047 Notes, the Supplemental Indenture and the co-obligor transaction are no longer effective. Please see Note 13 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2021 Annual Report on Form 10-K for more information on the Supplemental Indenture and the co-obligor transaction. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | 9 . Shareholders’ Equity During the quarters ended June 30, 2022 and 2021, there were 11,173 and 7,100 A ordinary shares, respectively, that were surrendered or repurchased with an average price paid per share of $26.28 and $27.64, respectively. The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2022: Period (1) Total Number of Shares Purchased 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 January 1-31, 2022 4,781 (2) $ 25.13 — — June 1-30, 2022 11,173 $ 26.28 — — Total 15,954 $ 25.94 — — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock and/or restricted stock units. The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2021: Period (1) Total Number of Shares Purchased 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 January 1-31, 2021 6,720 (2) $ 28.59 — — March 1-31, 2021 3,095 (2) $ 29.40 — — June 1-30, 2021 7,100 (2) $ 27.64 — — Total 16,915 $ 28.34 — — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock and/or restricted stock units. On April 5, 2021, Global Indemnity Group, LLC converted 186,160 of class B common shares to class A common shares. There were no other class B common shares that were surrendered or repurchased during the quarters and six months ended June 30, 2022 or 2021. As of June 30, 2022, Global Indemnity Group, LLC’s class A common shares were held by approximately 155 shareholders of record. There were three holders of record of Global Indemnity Group, LLC’s class B common shares, all of whom are affiliated investment funds of Fox Paine & Company, LLC, as of June 30, 2022. Global Indemnity Group, LLC’s preferred shares were held by 1 holder of record, an affiliate of Fox Paine & Company, LLC, as of June 30, 2022. Please see Note 15 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2021 Annual Report on Form 10-K for more information on the Company’s repurchase program. Distributions Distribution payments of $0.25 per common share were declared during the six months ended June 30, 2022 as follows: Approval Date Record Date Payment Date Total Distributions Declared (Dollars in thousands) March 3, 2022 March 21, 2022 March 31, 2022 $ 3,597 June 2, 2022 June 20, 2022 June 30, 2022 3,602 Various ( 1) Various Various 56 Total $ 7,255 (1) Represents distributions declared on unvested shares, net of forfeitures. Distribution payments of $0.25 per common share were declared during the six months ended June 30, 2021 as follows: Approval Date Record Date Payment Date Total Distributions Declared (Dollars in thousands) February 14, 2021 March 22, 2021 March 31, 2021 $ 3,570 June 5, 2021 June 21, 2021 June 30, 2021 3,579 Various (1) Various Various 216 Total $ 7,365 (1) Represents distributions declared on unvested shares, net of forfeitures. Accrued distributions on unvested shares, which were included in other liabilities on the consolidated balance sheets, were $1.0 million and $0.9 million as of June 30, 2022 and December 31, 2021, respectively. Accrued preferred distributions were less than $0.1 million as of both June 30, 2022 and December 31, 2021 and were included in other liabilities on the consolidated balance sheets. Please see Note 15 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2021 Annual Report on Form 10-K for more information on the Company’s distribution program. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10 . Related Party Transactions Fox Paine Entities Pursuant to Global Indemnity Group, LLC’s Limited Liability Company Agreement (“LLCA”), Fox Paine Capital Fund II International, L.P. and certain of its affiliates (the “Fox Paine Funds”), together with Fox Mercury Investments, L.P. and certain of its affiliates (the “FM Entities”), and Fox Paine & Company LLC (collectively, the “Fox Paine Entities”) currently constitute a Class B Majority Shareholder (as defined in the LLCA) and, as such, have the right to appoint a number of Global Indemnity Group, LLC’s directors equal in aggregate to the pro rata percentage of the voting power in Global Indemnity Group, LLC beneficially held by the Fox Paine Entities, rounded up to the nearest whole number of directors. The Fox Paine Entities beneficially own shares representing approximately 82.8% of the voting power of Global Indemnity Group, LLC as of June 30, 2022. The Fox Paine Entities control the appointment or election of all of Global Indemnity Group, LLC’s Directors due to the LLCA and their controlling share ownership. Global Indemnity Group, LLC’s Chairman is the chief executive and founder of Fox Paine & Company, LLC. On August 27, 2020, Global Indemnity Group, LLC issued and sold to Wyncote LLC, an affiliate of Fox Paine & Company, LLC, 4,000 Series A Cumulative Fixed Rate Preferred Interests at a price of $1,000 per Series A Preferred Interest, for the aggregate purchase price of $4,000,000. While these preferred interests are non-voting, the preferred shareholders are entitled to appoint two additional members to Global Indemnity Group, LLC’s Board of Directors whenever the “Unpaid Targeted Priority Return” with respect to the preferred interests exceed zero immediately following six or more “Distribution Dates”, whether or not such Distribution Dates occur consecutively. Global Indemnity Group, LLC’s Board of Directors is obligated to take, and cause Global Indemnity Group, LLC’s officers to take, any necessary actions to effectuate such appointments, including expanding the size of the Board of Directors, in connection with any exercise of the foregoing provisions. Management fee expense of $0.7 million was incurred during each of the quarters ended June 30, 2022 and 2021 and management fee expense of $1.4 million and $1.3 million was incurred during the six months ended June 30, 2022 and 2021, respectively. Prepaid management fees, which were included in other assets on the consolidated balance sheets, were $0.5 million and $1.9 million as of June 30, 2022 and December 31, 2021, respectively. 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 and conflict matter policies, including approval of Global Indemnity Group, LLC’s Conflicts Committee of the Board of Directors, for those services from time to time. Each of the Company’s transactions with Fox Paine & Company, LLC are reviewed and approved by Global Indemnity Group, LLC’s Conflicts Committee, which is composed of independent directors, and the Board of Directors (other than Saul A. Fox, Chairman of the Board of Directors of Global Indemnity Group, LLC and Chief Executive of Fox Paine & Company, LLC, who is not a member of the Conflicts Committee and recused himself from the Board of Directors’ deliberations related to fees paid to Fox Paine & Company, LLC or its affiliates). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 1 . 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 June 30, 2022, the Company has funded $35.8 million of this commitment leaving $14.2 million as unfunded. Since the investment period has concluded, the Company expects minimal capital calls will be made prospectively. 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 June 30, 2022, the Company has funded $33.0 million of this commitment leaving $17.0 million as unfunded. In 2021, the Company entered into a $25 million commitment to purchase an alternative investment vehicle comprised of performing, stressed or distressed securities and loans across the global fixed income markets. As of June 30, 2022, the Company has fully funded this commitment. 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 10 above for additional information pertaining to this management agreement. COVID-19 There is risk that legislation could be passed or there could be a court ruling which would require the Company to cover business interruption claims regardless of terms, exclusions including the virus exclusions contained within the Company’s Commercial Specialty and Exited Lines policies, or other conditions included in policies that would otherwise preclude coverage. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Plans | 1 2 . Share-Based Compensation Plans Options During the first quarter of 2021, the Company granted 140,000 Performance-Based Options under the Plan. The Performance-Based Options vest in 33% increments over a three-year Restricted Shares / Restricted Stock Units There were no restricted class A common shares or restricted stock units granted to key employees during the quarters and six months ended June 30, 2022 and 2021. There were 35,442 and 22,540 restricted stock units that vested during the quarters ended June 30, 2022 and 2021, respectively, and 61,522 and 42,977 restricted stock units that vested during the six months ended June 30, 2022 and 2021, respectively. Upon vesting, the restricted stock units converted to restricted class A common shares. During the quarters ended June 30, 2022 and 2021, the Company granted 25,760 and 19,738 class A common shares, respectively, at a weighted average grant date value of $25.96 and $28.71 per share, respectively, to non-employee directors of the Company under the Plan. Of the shares granted during the quarters ended June 30, 2022 and 2021, the vesting of 8,827 and 4,838 shares, respectively, is deferred until January 1, 2024 or a change of control, whichever is earlier. The remaining shares granted to non-employee directors of the Company in 2022 and 2021 were fully vested but are subject to certain restrictions. During the six months ended June 30, 2022 and 2021, the Company granted 50,570 and 39,744 class A common shares, respectively, at a weighted average grant date value of $25.80 and $28.51 per share, respectively, to non-employee directors of the Company under the Plan. Of the shares granted during the six months ended June 30, 2022 and 2021, the vesting of 16,140 shares and 9,741 shares, respectively, is deferred until January 1, 2024 or a change of control, whichever is earlier. The remaining shares granted to non-employee directors of the Company in 2022 and 2021 were fully vested but are subject to certain restrictions. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 1 3 . Earnings Per Share Earnings per share have been computed using the weighted average number of common shares and common share equivalents outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands, except share and per share data) 2022 2021 2022 2021 Numerator: Net income (loss) $ (12,162 ) $ 6,375 $ (26,935 ) $ 11,892 Less: preferred stock distributions 110 110 220 220 Net income (loss) available to common shareholders $ (12,272 ) $ 6,265 $ (27,155 ) $ 11,672 Denominator: Weighted average shares for basic earnings per share 14,543,234 14,412,446 14,529,170 14,396,523 Non-vested restricted stock — 12,310 — 11,254 Non-vested restricted stock units — 140,785 — 129,035 Options — 116,190 — 114,312 Weighted average shares for diluted earnings per share (1) 14,543,234 14,681,731 14,529,170 14,651,124 Earnings per share - Basic $ (0.84 ) $ 0.43 $ (1.87 ) $ 0.81 Earnings per share - Diluted $ (0.84 ) $ 0.43 $ (1.87 ) $ 0.80 (1) For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period. If the Company had not incurred a loss in the quarter ended June 30, 2022, 14,749,370 weighted average shares would have been used to compute the diluted loss per share calculation. In addition to the basic shares, weighted average shares for the diluted calculation would have included 110,417 shares of non-vested restricted stock units and 95,719 share equivalents for options. If the Company had not incurred a loss in the six months ended June 30, 2022, 14,728,182 weighted average shares would have been used to compute the diluted loss per share calculation. In addition to the basic shares, weighted average shares for the diluted calculation would have included 103,670 shares of non-vested restricted stock units and 95,342 share equivalents for options. The weighted average shares outstanding used to determine dilutive earnings per share does not include 393,333 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | 1 4 . Segment Information On August 8, 2022, the Company sold the renewal rights related to all business lines within its Farm, Ranch & Stable segment for business written on or after August 8, 2022 to Everett Cash Mutual Insurance Company. During the 2 nd The Company manages its business through three business segments. Commercial Specialty offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs. Reinsurance Operations provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. Exited Lines represents lines of business that are no longer being written or are in runoff. The following are tabulations of business segment information for the quarters and six months ended June 30, 2022 and 2021: Quarter Ended June 30, 2022 (Dollars in thousands) Commercial Specialty Reinsurance Operations (1) Exited Lines Total Revenues: Gross written premiums $ 109,797 $ 46,394 $ 40,632 $ 196,823 Net written premiums $ 101,171 $ 46,394 $ 19,593 $ 167,158 Net earned premiums $ 95,172 $ 38,596 $ 21,981 $ 155,749 Other income (loss) 260 (61 ) (25 ) 174 Total revenues 95,432 38,535 21,956 155,923 Losses and Expenses: Net losses and loss adjustment expenses 56,042 22,481 14,095 92,618 Acquisition costs and other underwriting expenses 36,222 14,369 10,507 61,098 Income (loss) from segments $ 3,168 $ 1,685 $ (2,646 ) $ 2,207 Unallocated Items: Net investment income 1,930 Net realized investment losses (9,916 ) Other loss (77 ) Corporate and other operating expenses (2,993 ) Interest expense (410 ) Loss on extinguishment of debt (3,529 ) Loss before income taxes (12,788 ) Income tax benefit 626 Net loss $ (12,162 ) Segment assets $ 1,002,120 $ 326,804 $ 384,991 $ 1,713,915 Corporate assets 147,864 Total assets $ 1,861,779 (1) External business only, excluding business assumed from affiliates. Quarter Ended June 30, 2021 (Dollars in thousands) Commercial Specialty Reinsurance Operations (1) Exited Lines Total Revenues: Gross written premiums $ 99,406 $ 24,487 $ 51,343 $ 175,236 Net written premiums $ 91,647 $ 24,487 $ 44,519 $ 160,653 Net earned premiums $ 81,965 $ 18,061 $ 49,382 $ 149,408 Other income 208 14 290 512 Total revenues 82,173 18,075 49,672 149,920 Losses and Expenses: Net losses and loss adjustment expenses 42,669 11,600 36,669 90,938 Acquisition costs and other underwriting expenses 30,577 6,198 20,438 57,213 Income (loss) from segments $ 8,927 $ 277 $ (7,435 ) $ 1,769 Unallocated Items: Net investment income 10,633 Net realized investment gains 3,833 Other income 9 Corporate and other operating expenses (6,329 ) Interest expense (2,696 ) Income before income taxes 7,219 Income tax expense (844 ) Net income $ 6,375 Segment assets $ 905,240 $ 191,152 $ 470,245 $ 1,566,637 Corporate assets 370,680 Total assets $ 1,937,317 (1) External business only, excluding business assumed from affiliates. Six Months Ended June 30, 2022 (Dollars in thousands) Commercial Specialty Reinsurance Operations (1) Exited Lines Total Revenues: Gross written premiums $ 214,063 $ 87,839 $ 85,904 $ 387,806 Net written premiums $ 199,484 $ 87,839 $ 39,317 $ 326,640 Net earned premiums $ 186,935 $ 73,559 $ 44,078 $ 304,572 Other income (loss) 519 (81 ) 175 613 Total revenues 187,454 73,478 44,253 305,185 Losses and Expenses: Net losses and loss adjustment expenses 108,095 43,938 25,280 177,313 Acquisition costs and other underwriting expenses 69,911 26,546 21,333 117,790 Income (loss) from segments $ 9,448 $ 2,994 $ (2,360 ) $ 10,082 Unallocated Items: Net investment income 8,522 Net realized investment losses (35,301 ) Other loss (90 ) Corporate and other operating expenses (7,653 ) Interest expense (3,005 ) Loss on extinguishment of debt (3,529 ) Loss before income taxes (30,974 ) Income tax benefit 4,039 Net loss $ (26,935 ) Segment assets $ 1,002,120 $ 326,804 $ 384,991 $ 1,713,915 Corporate assets 147,864 Total assets $ 1,861,779 (1) External business only, excluding business assumed from affiliates. Six Months Ended June 30, 2021 (Dollars in thousands) Commercial Specialty Reinsurance Operations (1) Exited Lines Total Revenues: Gross written premiums $ 188,740 $ 46,438 $ 103,616 $ 338,794 Net written premiums $ 173,819 $ 46,438 $ 88,079 $ 308,336 Net earned premiums $ 160,657 $ 34,859 $ 97,592 $ 293,108 Other income (loss) 452 (42 ) 510 920 Total revenues 161,109 34,817 98,102 294,028 Losses and Expenses: Net losses and loss adjustment expenses 92,459 22,475 66,787 181,721 Acquisition costs and other underwriting expenses 59,629 11,977 40,371 111,977 Income (loss) from segments $ 9,021 $ 365 $ (9,056 ) $ 330 Unallocated Items: Net investment income 20,469 Net realized investment gains 7,652 Other loss (22 ) Corporate and other operating expenses (10,605 ) Interest expense (5,291 ) Income before income taxes 12,533 Income tax expense (641 ) Net income $ 11,892 Segment assets $ 905,240 $ 191,152 $ 470,245 $ 1,566,637 Corporate assets 370,680 Total assets $ 1,937,317 (1) External business only, excluding business assumed from affiliates. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 1 5 . New Accounting Pronouncements The Company did not adopt any new accounting pronouncements during the six months ended June 30, 2022. Please see Note 24 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2021 Annual Report on Form 10-K for more information on accounting pronouncements issued but not yet adopted. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 1 6 . On August 8, 2022 August 8, 2022 August 8, 2022. Everett Cash Mutual Insurance Company th |
Principles of Consolidation a_2
Principles of Consolidation and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business Segments | On August 8, 2022, the Company sold the renewal rights related to all business lines within its Farm, Ranch & Stable segment for business written on or after August 8, 2022 to Everett Cash Mutual Insurance Company. During the 2 nd Global Indemnity Group, LLC is a holding company that is classified as a publicly traded partnership for U.S. federal income tax purposes and meets the qualifying income exception to maintain partnership status. Global Indemnity Group, LLC owns all shares of its direct and indirect subsidiaries, including those of its insurance companies: United National Insurance Company, Diamond State Insurance Company, Penn-America Insurance Company, Penn-Star Insurance Company, Penn-Patriot Insurance Company, and American Reliable Insurance Company. The insurance companies’ primary activity is providing insurance products across a distribution network that includes binding authority, program, brokerage and reinsurance. The insurance companies are managed through business, certain business within Property Brokerage, property and catastrophe reinsurance treaties , Farm, Ranch, & Stable business, and specialized insurance products for the equine mortality and equine major medical industry . Collectively, the Company’s insurance subsidiaries are licensed in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The Commercial Specialty segment comprises the Company’s Insurance Operations (“Insurance Operations”). The interim consolidated financial statements are unaudited, but 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 | The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and six months ended June 30, 2022 and 2021 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2021 Annual Report on Form 10-K. The consolidated financial statements include the accounts of Global Indemnity Group, LLC and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Investments | The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each available for sale debt security in an unrealized loss position to assess whether the decline in fair value below amortized cost basis has resulted from a credit loss or other factors. In assessing whether a credit loss exists, the Company compares the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis of the security, a credit loss exists and an allowance for expected credit losses is recorded. Subsequent changes in the allowances are recorded in the period of change as either credit loss expense or reversal of credit loss expense. Any impairments related to factors other than credit losses and the intent to sell are recorded through other comprehensive income, net of taxes. For fixed maturities, the factors considered in reaching the conclusion that a credit loss exists include, among others, whether: (1) the extent to which the fair value is less than the amortized cost basis; (2) the issuer is in financial distress; (3) the investment is secured; (4) a significant credit rating action occurred; (5) scheduled interest payments were delayed or missed; (6) changes in laws or regulations have affected an issuer or industry; (7) 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; (8) the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized; and (9) changes in US Treasury rates and/or credit spreads since original purchase to identify whether the unrealized loss is simply due to interest rate movement. 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, any allowance for expected credit losses is written off and the amortized cost basis is written down to the fair value of the fixed maturity security with any incremental impairment reported in earnings. That new amortized cost basis shall not be adjusted for subsequent recoveries in fair value. The Company elected the practical expedient to exclude accrued interest from both the fair value and the amortized cost basis of the available for sale debt securities for the purposes of identifying and measuring an impairment and to not measure an allowance for expected credit losses for accrued interest receivables. Accrued interest receivable is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default on payment. The Company made an accounting policy election to present the accrued interest receivable balance with other assets on the Company’s consolidated statements of financial position. Accrued interest receivable related to fixed maturities was $6.2 million and $5.2 million as of June 30, 2022 and December 31, 2021, respectively. |
Derivative Instruments | 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. |
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 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 collateralized 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. |
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. |
Earnings Per Share | Earnings per share have been computed using the weighted average number of common shares and common share equivalents outstanding during the period. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost and Estimated Fair Value of Company's Fixed Maturities Securities | The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of June 30, 2022 and December 31, 2021: (Dollars in thousands) Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of June 30, 2022 Fixed maturities: U.S. treasuries $ 242,102 $ — $ 301 $ (2,076 ) $ 240,327 Obligations of states and political subdivisions 33,397 — 32 (1,055 ) 32,374 Mortgage-backed securities 64,187 — 428 (2,776 ) 61,839 Asset-backed securities 143,274 — 144 (5,888 ) 137,530 Commercial mortgage-backed securities 112,660 — 19 (3,781 ) 108,898 Corporate bonds 343,252 — 23 (11,904 ) 331,371 Foreign corporate bonds 212,323 — 1 (6,534 ) 205,790 Total fixed maturities $ 1,151,195 $ — $ 948 $ (34,014 ) $ 1,118,129 (Dollars in thousands) Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of December 31, 2021 Fixed maturities: U.S. treasuries $ 149,934 $ — $ 603 $ (419 ) $ 150,118 Agency obligations 5,697 — 1 (68 ) 5,630 Obligations of states and political subdivisions 53,637 — 1,385 (301 ) 54,721 Mortgage-backed securities 250,007 — 2,618 (2,284 ) 250,341 Asset-backed securities 172,916 — 700 (974 ) 172,642 Commercial mortgage-backed securities 135,017 — 2,503 (627 ) 136,893 Corporate bonds 288,866 — 5,571 (2,054 ) 292,383 Foreign corporate bonds 137,672 — 2,370 (904 ) 139,138 Total fixed maturities $ 1,193,746 $ — $ 15,751 $ (7,631 ) $ 1,201,866 |
Schedule Of Investments In Equity Securities | As of June 30, 2022 and December 31, 2021, the Company’s investments in equity securities consist of the following: (Dollars in thousands) June 30, 2022 December 31, 2021 Common stock $ 878 $ 75,987 Preferred stock 16,992 23,991 Total $ 17,870 $ 99,978 |
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 June 30, 2022, 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 $ 57,798 $ 57,486 Due in one year through five years 722,611 707,206 Due in five years through ten years 36,200 32,948 Due in ten years through fifteen years 304 277 Due after fifteen years 14,161 11,945 Mortgage-backed securities 64,187 61,839 Asset-backed securities 143,274 137,530 Commercial mortgage-backed securities 112,660 108,898 Total $ 1,151,195 $ 1,118,129 |
Summary of Securities With Gross Unrealized Losses | The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of June 30, 2022. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 4. Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasuries $ 187,603 $ (2,019 ) $ 643 $ (57 ) $ 188,246 $ (2,076 ) Obligations of states and political subdivisions 28,204 (1,055 ) — — 28,204 (1,055 ) Mortgage-backed securities 44,366 (2,589 ) 3,008 (187 ) 47,374 (2,776 ) Asset-backed securities 97,049 (4,602 ) 20,929 (1,286 ) 117,978 (5,888 ) Commercial mortgage-backed securities 95,440 (3,743 ) 2,062 (38 ) 97,502 (3,781 ) Corporate bonds 318,485 (11,005 ) 6,213 (899 ) 324,698 (11,904 ) Foreign corporate bonds 200,161 (6,406 ) 1,137 (128 ) 201,298 (6,534 ) Total fixed maturities $ 971,308 $ (31,419 ) $ 33,992 $ (2,595 ) $ 1,005,300 $ (34,014 ) The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2021. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 4. Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasuries $ 114,894 $ (390 ) $ 970 $ (29 ) $ 115,864 $ (419 ) Agency obligations 5,380 (68 ) — — 5,380 (68 ) Obligations of states and political subdivisions 13,346 (301 ) — — 13,346 (301 ) Mortgage-backed securities 143,674 (2,222 ) 3,009 (62 ) 146,683 (2,284 ) Asset-backed securities 102,309 (703 ) 10,662 (271 ) 112,971 (974 ) Commercial mortgage-backed securities 50,448 (466 ) 1,286 (161 ) 51,734 (627 ) Corporate bonds 129,146 (1,954 ) 2,633 (100 ) 131,779 (2,054 ) Foreign corporate bonds 67,915 (893 ) 412 (11 ) 68,327 (904 ) Total fixed maturities $ 627,112 $ (6,997 ) $ 18,972 $ (634 ) $ 646,084 $ (7,631 ) |
Schedule of Impairments on Investments | The Company recorded the following impairments on its investment portfolio for the quarters and six months ended June 30, 2022 and 2021 and are related to securities in an unrealized loss position where the Company had an intent to sell the securities: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Fixed maturities: Impairment related to intent to sell (680 ) — (26,205 ) — Total $ (680 ) $ — $ (26,205 ) $ — |
Schedule of Accumulated Other Comprehensive Income, Net of Tax | Accumulated other comprehensive income, net of tax, as of June 30, 2022 and December 31, 2021 was as follows: (Dollars in thousands) June 30, 2022 December 31, 2021 Net unrealized gains (losses) from: Fixed maturities $ (33,066 ) $ 8,120 Foreign currency fluctuations (291 ) (145 ) Deferred taxes 6,732 (1,571 ) Accumulated other comprehensive income (loss), net of tax $ (26,625 ) $ 6,404 |
Changes in Accumulated Other Comprehensive Income | The following tables present the changes in accumulated other comprehensive income, net of tax, by components, for the quarters and six months ended June 30, 2022 and 2021: Quarter Ended June 30, 2022 (Dollars In Thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Beginning balance, net of tax $ (12,769 ) $ (3 ) $ (12,772 ) Other comprehensive income (loss) before reclassification, before tax (26,518 ) (287 ) (26,805 ) Amounts reclassified from accumulated other comprehensive income, before tax 9,317 — 9,317 Other comprehensive income (loss), before tax (17,201 ) (287 ) (17,488 ) Income tax benefit 3,575 60 3,635 Ending balance, net of tax $ (26,395 ) $ (230 ) $ (26,625 ) Quarter Ended June 30, 2021 (Dollars In Thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ 9,819 $ 34 $ 9,853 Other comprehensive income before reclassification, before tax 11,797 (84 ) 11,713 Amounts reclassified from accumulated other comprehensive income, before tax (453 ) — (453 ) Other comprehensive income, before tax 11,344 (84 ) 11,260 Income tax (expense) benefit (2,162 ) 17 (2,145 ) Ending balance, net of tax $ 19,001 $ (33 ) $ 18,968 Six Months Ended June 30, 2022 (Dollars In Thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ 6,519 $ (115 ) $ 6,404 Other comprehensive income before reclassification, before tax (79,267 ) (146 ) (79,413 ) Amounts reclassified from accumulated other comprehensive income, before tax 38,081 — 38,081 Other comprehensive income, before tax (41,186 ) (146 ) (41,332 ) Income tax benefit 8,272 31 8,303 Ending balance, net of tax $ (26,395 ) $ (230 ) $ (26,625 ) Six Months Ended June 30, 2021 (Dollars In Thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ 34,181 $ 127 $ 34,308 Other comprehensive income before reclassification, before tax (19,389 ) (202 ) (19,591 ) Amounts reclassified from accumulated other comprehensive income, before tax 706 — 706 Other comprehensive income, before tax (18,683 ) (202 ) (18,885 ) Income tax benefit 3,503 42 3,545 Ending balance, net of tax $ 19,001 $ (33 ) $ 18,968 |
Reclassifications Out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive income for the quarters and six months ended June 30, 2022 and 2021 were as follows: Amounts Reclassified from Accumulated Other Comprehensive Income (Dollars in thousands) Quarters Ended June 30, Details about Accumulated Other Comprehensive Income Components Affected Line Item in the Consolidated Statements of Operations 2022 2021 Unrealized gains and losses on available for sale securities Other net realized investment (gains) losses $ 9,317 $ (453 ) Income tax expense (benefit) (1,440 ) 158 Total reclassifications, net of tax $ 7,877 $ (295 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Dollars in thousands) Six Months Ended June 30, Details about Accumulated Other Comprehensive Income Components Affected Line Item in the Consolidated Statements of Operations 2022 2021 Unrealized gains and losses on available for sale securities Other net realized investment (gains) losses $ 38,081 $ 706 Income tax expense (benefit) (7,119 ) (185 ) Total reclassifications, net of tax $ 30,962 $ 521 |
Components of Net Realized Investment Gains (Losses) | The components of net realized investment gains (losses) for the quarters and six months ended June 30, 2022 and 2021 were as follows: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Fixed maturities: Gross realized gains $ 456 $ 2,300 $ 662 $ 5,678 Gross realized losses (9,773 ) (1,847 ) (38,743 ) (6,384 ) Net realized gains (losses) (9,317 ) 453 (38,081 ) (706 ) Equity securities: Gross realized gains 2 4,338 1,806 8,784 Gross realized losses (2,417 ) (943 ) (5,566 ) (1,021 ) Net realized gains (losses) (2,415 ) 3,395 (3,760 ) 7,763 Derivatives: Gross realized gains 2,872 1,366 8,960 3,719 Gross realized losses (1,056 ) (1,381 ) (2,420 ) (3,124 ) Net realized gains (losses) (1) 1,816 (15 ) 6,540 595 Total net realized investment gains (losses) $ (9,916 ) $ 3,833 $ (35,301 ) $ 7,652 (1) Includes periodic net interest settlements related to the derivatives of $1.1 million and $1.4 million for the quarters ended June 30, 2022 and 2021, respectively, and $2.5 million and $2.8 million for the six months ended June 30, 2022 and 2021, 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 June 30, 2022 and 2021: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Net gains (losses) recognized during the period on equity securities $ (2,415 ) $ 3,395 $ (3,760 ) $ 7,763 Less: net gains (losses) recognized during the period on equity securities sold during the period (498 ) 1,429 10,616 2,805 Unrealized gains (losses) recognized during the reporting period on equity securities $ (1,917 ) $ 1,966 $ (14,376 ) $ 4,958 |
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 six months ended June 30, 2022 and 2021 were as follows: Six Months Ended June 30, (Dollars in thousands) 2022 2021 Fixed maturities $ 829,205 $ 636,040 Equity securities 88,726 42,821 |
Schedule of Investment Income | The sources of net investment income for the quarters and six months ended June 30, 2022 and 2021 were as follows: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Fixed maturities $ 7,467 $ 6,648 $ 13,871 $ 13,475 Equity securities 275 618 609 1,293 Cash and cash equivalents 99 214 131 264 Other invested assets (5,300 ) 3,788 (4,874 ) 6,785 Total investment income 2,541 11,268 9,737 21,817 Investment expense (611 ) (635 ) (1,215 ) (1,348 ) Net investment income $ 1,930 $ 10,633 $ 8,522 $ 20,469 |
Schedule of Total Investment Return | The Company’s total investment return on a pre-tax basis for the quarters and six months ended June 30, 2022 and 2021 were as follows: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Net investment income $ 1,930 $ 10,633 $ 8,522 $ 20,469 Net realized investment gains (losses) (9,916 ) 3,833 (35,301 ) 7,652 Change in unrealized holding gains (losses) (17,488 ) 11,260 (41,332 ) (18,885 ) Net realized and unrealized investment returns (27,404 ) 15,093 (76,633 ) (11,233 ) Total investment return $ (25,474 ) $ 25,726 $ (68,111 ) $ 9,236 Total investment return % (1) (1.8 %) 1.8 % (4.8 %) 0.6 % Average investment portfolio (2) $ 1,395,519 $ 1,452,754 $ 1,429,227 $ 1,463,027 (1) Not annualized. ( 2 ) Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period. |
Summary of Estimated Fair Values of Bonds Held on Deposit | The fair values were as follows as of June 30, 2022 and December 31, 2021: Estimated Fair Value (Dollars in thousands) June 30, 2022 December 31, 2021 On deposit with governmental authorities $ 25,304 $ 26,093 Held in trust pursuant to third party requirements 110,768 119,513 Letter of credit held for third party requirements 1,187 2,512 Total $ 137,259 $ 148,118 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021: (Dollars in thousands) June 30, 2022 December 31, 2021 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 $ 213,022 $ 565 $ 213,022 $ (8,395 ) Total (1) $ 213,022 $ 565 $ 213,022 $ (8,395 ) (1) The derivatives are held by GBLI Holdings, LLC and are guaranteed by Global Indemnity Group, LLC |
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 quarters and six months ended June 30, 2022 and 2021: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) Consolidated Statements of Operations Line 2022 2021 2022 2021 Interest rate swap agreements Net realized investment gains (losses) $ 1,816 $ (15 ) $ 6,540 $ 914 Futures contracts on bonds Net realized investment gains (losses) — — — (319 ) Total $ 1,816 $ (15 ) $ 6,540 $ 595 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value Measurements As of June 30, 2022 (Dollars in thousands) Level 1 Level 2 Level 3 Total Fixed maturities: U.S. treasuries $ 240,327 $ — $ — $ 240,327 Obligations of states and political subdivisions — 32,374 — 32,374 Mortgage-backed securities — 60,868 971 61,839 Commercial mortgage-backed securities — 108,898 — 108,898 Asset-backed securities — 136,605 925 137,530 Corporate bonds — 329,886 1,485 331,371 Foreign corporate bonds — 205,699 91 205,790 Total fixed maturities 240,327 874,330 3,472 1,118,129 Equity securities — 16,992 878 17,870 Derivative instruments — 565 — 565 Total assets measured at fair value $ 240,327 $ 891,887 $ 4,350 $ 1,136,564 Fair Value Measurements As of December 31, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasuries $ 150,118 $ — $ — $ 150,118 Agency obligations — 5,630 — 5,630 Obligations of states and political subdivisions — 54,721 — 54,721 Mortgage-backed securities — 250,341 — 250,341 Commercial mortgage-backed securities — 136,893 — 136,893 Asset-backed securities — 171,686 956 172,642 Corporate bonds — 290,807 1,576 292,383 Foreign corporate bonds — 139,138 — 139,138 Total fixed maturities 150,118 1,049,216 2,532 1,201,866 Equity securities 75,750 23,991 237 99,978 Total assets measured at fair value $ 225,868 $ 1,073,207 $ 2,769 $ 1,301,844 Liabilities: Derivative instruments $ — $ 8,395 $ — $ 8,395 Total liabilities measured at fair value $ — $ 8,395 $ — $ 8,395 |
Changes in Level 3 Investments Measured at Fair Value on Recurring Basis | The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the quarters and six months ended June 30, 2022 and 2021: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Beginning balance $ 4,288 $ 2,203 $ 2,769 $ — Total gains (realized / unrealized): Included in accumulated other comprehensive income 23 7 15 (32 ) Included in earnings attributable to realized (102 ) — (170 ) — Transfers into level 3 607 702 857 702 Transfers out of level 3 — (1,720 ) — (1,720 ) Amortization of bond premium and discount, net 2 — 2 — Purchases 55 43 1,479 2,285 Sales (523 ) — (602 ) — Ending balance $ 4,350 1,235 $ 4,350 1,235 Gains (losses) included in earnings attributable to the change in unrealized gains (losses) related to assets still held at end of reporting period $ (9 ) $ — $ (14 ) $ — |
Current Fair Value of Debt | For the Company’s material debt arrangements, the current fair value of the Company’s debt at June 30, 2022 and December 31, 2021 was as follows: June 30, 2022 December 31, 2021 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value 7.875% Subordinated Notes due 2047 (1) $ — $ — $ 126,430 $ 129,238 Total $ — $ — $ 126,430 $ 129,238 (1) As of December 31, 2021, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $3.6 million. In April 2022, the Company redeemed all of its outstanding 7.875% subordinated notes due 2047 and unamortized debt issuance cost of $3.5 million was written off included in the consolidated statements of operations as loss on extinguishment of debt. |
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 June 30, 2022 and December 31, 2021. June 30, 2022 December 31, 2021 (Dollars in thousands) Fair Value Future Funding Commitment Fair Value Future Funding Commitment European Non-Performing Loan Fund, LP (1) $ 5,012 $ 14,214 $ 8,636 $ 14,214 Distressed Debt Fund, LP (2) 330 17,000 349 17,000 Mortgage Debt Fund, LP (3) 9,592 — 11,707 — Credit Fund, LLC (4) 99,608 — 106,162 — Global Debt Fund, LP (5) 25,655 — 25,797 — Total $ 140,197 $ 31,214 $ 152,651 $ 31,214 ( 1 ) 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. ( 2 ) 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. ( 3 ) 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. (4) This limited liability company invests in a broad portfolio of non-investment grade loans, secured and unsecured corporate debt, credit default swaps, reverse repurchase agreements and synthetic indices. The Company does have the ability to sell its interest by providing notice to the fund. ( 5 ) This limited partnership invests in performing, stressed or distressed securities and loans across the global fixed income markets. 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. |
Allowance for Expected Credit_2
Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Allowance For Credit Loss [Abstract] | |
Schedule of Allowance for Credit Losses Related to Premium Receivables | The following table is an analysis of the allowance for expected credit losses related to the Company's premium receivables for the quarters and six months ended June 30, 2022 and 2021: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Beginning balance $ 2,937 $ 2,772 $ 2,996 $ 2,900 Current period provision for expected credit losses 536 172 619 260 Write-offs (554 ) (122 ) (696 ) (338 ) Ending balance $ 2,919 $ 2,822 $ 2,919 $ 2,822 |
Schedule of Allowance for Credit Losses Related to Reinsurance Receivables | The following table is an analysis of the allowance for expected credit losses related to the Company's reinsurance receivables for the quarters and six months ended June 30, 2022 and 2021: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Beginning balance $ 8,992 $ 8,992 $ 8,992 $ 8,992 Current period provision for expected credit losses — — — — Write-offs — — — — Recoveries of amounts previously written off — — — — Ending balance $ 8,992 $ 8,992 $ 8,992 $ 8,992 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | The following table summarizes the components of income tax expense (benefit): Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Deferred income tax expense (benefit): U.S. Federal $ (626 ) $ 844 $ (4,039 ) $ 641 Total deferred income tax expense (benefit) (626 ) 844 (4,039 ) 641 Total income tax expense (benefit) $ (626 ) $ 844 $ (4,039 ) $ 641 |
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: Quarters Ended June 30, 2022 2021 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average tax rate $ (2,686 ) 21.0 % $ 1,516 21.0 % Adjustments: Dividend exclusion (24 ) 0.2 (19 ) (0.3 ) Parent (income) loss treated as partnership for tax 1,827 (14.3 ) (819 ) (11.3 ) Other 257 (2.0 ) 166 2.3 Effective income tax expense (benefit) $ (626 ) 4.9 % $ 844 11.7 % Six Months Ended June 30, 2022 2021 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average tax rate $ (6,505 ) 21.0 % $ 2,632 21.0 % Adjustments: Dividend exclusion (46 ) 0.1 (36 ) (0.3 ) Parent (income) loss treated as partnership for tax 2,070 (6.7 ) (2,186 ) (17.4 ) Other 442 (1.4 ) 231 1.8 Effective income tax expense (benefit) $ (4,039 ) 13.0 % $ 641 5.1 % |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2022 2021 2022 2021 Balance at beginning of period $ 770,332 $ 675,908 $ 759,904 $ 662,811 Less: Ceded reinsurance receivables 93,194 79,421 94,443 82,158 Net balance at beginning of period 677,138 596,487 665,461 580,653 Incurred losses and loss adjustment expenses related to: Current year 96,189 85,409 183,947 179,603 Prior years (3,571 ) 5,529 (6,634 ) 2,118 Total incurred losses and loss adjustment expenses 92,618 90,938 177,313 181,721 Paid losses and loss adjustment expenses related to: Current year 29,079 38,558 42,394 60,277 Prior years 30,201 38,400 89,904 91,630 Total paid losses and loss adjustment expenses 59,280 76,958 132,298 151,907 Net balance at end of period 710,476 610,467 710,476 610,467 Plus: Ceded reinsurance receivables 94,185 87,151 94,185 87,151 Balance at end of period $ 804,661 $ 697,618 $ 804,661 $ 697,618 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Outstanding Debt | The Company’s outstanding debt consisted of the following at June 30, 2022 and December 31, 2021: (Dollars in thousands) June 30, 2022 December 31, 2021 7.875% Subordinated Notes due 2047 $ — $ 126,430 Total $ — $ 126,430 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Information with Respect to Class A Common Shares that were Surrendered or Repurchased | The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2022: Period (1) Total Number of Shares Purchased 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 January 1-31, 2022 4,781 (2) $ 25.13 — — June 1-30, 2022 11,173 $ 26.28 — — Total 15,954 $ 25.94 — — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock and/or restricted stock units. The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2021: Period (1) Total Number of Shares Purchased 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 January 1-31, 2021 6,720 (2) $ 28.59 — — March 1-31, 2021 3,095 (2) $ 29.40 — — June 1-30, 2021 7,100 (2) $ 27.64 — — Total 16,915 $ 28.34 — — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock and/or restricted stock units. |
Schedule of Distributions Declared | Distribution payments of $0.25 per common share were declared during the six months ended June 30, 2022 as follows: Approval Date Record Date Payment Date Total Distributions Declared (Dollars in thousands) March 3, 2022 March 21, 2022 March 31, 2022 $ 3,597 June 2, 2022 June 20, 2022 June 30, 2022 3,602 Various ( 1) Various Various 56 Total $ 7,255 (1) Represents distributions declared on unvested shares, net of forfeitures. Distribution payments of $0.25 per common share were declared during the six months ended June 30, 2021 as follows: Approval Date Record Date Payment Date Total Distributions Declared (Dollars in thousands) February 14, 2021 March 22, 2021 March 31, 2021 $ 3,570 June 5, 2021 June 21, 2021 June 30, 2021 3,579 Various (1) Various Various 216 Total $ 7,365 (1) Represents distributions declared on unvested shares, net of forfeitures. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands, except share and per share data) 2022 2021 2022 2021 Numerator: Net income (loss) $ (12,162 ) $ 6,375 $ (26,935 ) $ 11,892 Less: preferred stock distributions 110 110 220 220 Net income (loss) available to common shareholders $ (12,272 ) $ 6,265 $ (27,155 ) $ 11,672 Denominator: Weighted average shares for basic earnings per share 14,543,234 14,412,446 14,529,170 14,396,523 Non-vested restricted stock — 12,310 — 11,254 Non-vested restricted stock units — 140,785 — 129,035 Options — 116,190 — 114,312 Weighted average shares for diluted earnings per share (1) 14,543,234 14,681,731 14,529,170 14,651,124 Earnings per share - Basic $ (0.84 ) $ 0.43 $ (1.87 ) $ 0.81 Earnings per share - Diluted $ (0.84 ) $ 0.43 $ (1.87 ) $ 0.80 (1) For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Business Segment Information | The following are tabulations of business segment information for the quarters and six months ended June 30, 2022 and 2021: Quarter Ended June 30, 2022 (Dollars in thousands) Commercial Specialty Reinsurance Operations (1) Exited Lines Total Revenues: Gross written premiums $ 109,797 $ 46,394 $ 40,632 $ 196,823 Net written premiums $ 101,171 $ 46,394 $ 19,593 $ 167,158 Net earned premiums $ 95,172 $ 38,596 $ 21,981 $ 155,749 Other income (loss) 260 (61 ) (25 ) 174 Total revenues 95,432 38,535 21,956 155,923 Losses and Expenses: Net losses and loss adjustment expenses 56,042 22,481 14,095 92,618 Acquisition costs and other underwriting expenses 36,222 14,369 10,507 61,098 Income (loss) from segments $ 3,168 $ 1,685 $ (2,646 ) $ 2,207 Unallocated Items: Net investment income 1,930 Net realized investment losses (9,916 ) Other loss (77 ) Corporate and other operating expenses (2,993 ) Interest expense (410 ) Loss on extinguishment of debt (3,529 ) Loss before income taxes (12,788 ) Income tax benefit 626 Net loss $ (12,162 ) Segment assets $ 1,002,120 $ 326,804 $ 384,991 $ 1,713,915 Corporate assets 147,864 Total assets $ 1,861,779 (1) External business only, excluding business assumed from affiliates. Quarter Ended June 30, 2021 (Dollars in thousands) Commercial Specialty Reinsurance Operations (1) Exited Lines Total Revenues: Gross written premiums $ 99,406 $ 24,487 $ 51,343 $ 175,236 Net written premiums $ 91,647 $ 24,487 $ 44,519 $ 160,653 Net earned premiums $ 81,965 $ 18,061 $ 49,382 $ 149,408 Other income 208 14 290 512 Total revenues 82,173 18,075 49,672 149,920 Losses and Expenses: Net losses and loss adjustment expenses 42,669 11,600 36,669 90,938 Acquisition costs and other underwriting expenses 30,577 6,198 20,438 57,213 Income (loss) from segments $ 8,927 $ 277 $ (7,435 ) $ 1,769 Unallocated Items: Net investment income 10,633 Net realized investment gains 3,833 Other income 9 Corporate and other operating expenses (6,329 ) Interest expense (2,696 ) Income before income taxes 7,219 Income tax expense (844 ) Net income $ 6,375 Segment assets $ 905,240 $ 191,152 $ 470,245 $ 1,566,637 Corporate assets 370,680 Total assets $ 1,937,317 (1) External business only, excluding business assumed from affiliates. Six Months Ended June 30, 2022 (Dollars in thousands) Commercial Specialty Reinsurance Operations (1) Exited Lines Total Revenues: Gross written premiums $ 214,063 $ 87,839 $ 85,904 $ 387,806 Net written premiums $ 199,484 $ 87,839 $ 39,317 $ 326,640 Net earned premiums $ 186,935 $ 73,559 $ 44,078 $ 304,572 Other income (loss) 519 (81 ) 175 613 Total revenues 187,454 73,478 44,253 305,185 Losses and Expenses: Net losses and loss adjustment expenses 108,095 43,938 25,280 177,313 Acquisition costs and other underwriting expenses 69,911 26,546 21,333 117,790 Income (loss) from segments $ 9,448 $ 2,994 $ (2,360 ) $ 10,082 Unallocated Items: Net investment income 8,522 Net realized investment losses (35,301 ) Other loss (90 ) Corporate and other operating expenses (7,653 ) Interest expense (3,005 ) Loss on extinguishment of debt (3,529 ) Loss before income taxes (30,974 ) Income tax benefit 4,039 Net loss $ (26,935 ) Segment assets $ 1,002,120 $ 326,804 $ 384,991 $ 1,713,915 Corporate assets 147,864 Total assets $ 1,861,779 (1) External business only, excluding business assumed from affiliates. Six Months Ended June 30, 2021 (Dollars in thousands) Commercial Specialty Reinsurance Operations (1) Exited Lines Total Revenues: Gross written premiums $ 188,740 $ 46,438 $ 103,616 $ 338,794 Net written premiums $ 173,819 $ 46,438 $ 88,079 $ 308,336 Net earned premiums $ 160,657 $ 34,859 $ 97,592 $ 293,108 Other income (loss) 452 (42 ) 510 920 Total revenues 161,109 34,817 98,102 294,028 Losses and Expenses: Net losses and loss adjustment expenses 92,459 22,475 66,787 181,721 Acquisition costs and other underwriting expenses 59,629 11,977 40,371 111,977 Income (loss) from segments $ 9,021 $ 365 $ (9,056 ) $ 330 Unallocated Items: Net investment income 20,469 Net realized investment gains 7,652 Other loss (22 ) Corporate and other operating expenses (10,605 ) Interest expense (5,291 ) Income before income taxes 12,533 Income tax expense (641 ) Net income $ 11,892 Segment assets $ 905,240 $ 191,152 $ 470,245 $ 1,566,637 Corporate assets 370,680 Total assets $ 1,937,317 (1) External business only, excluding business assumed from affiliates. |
Principles of Consolidation a_3
Principles of Consolidation and Basis of Presentation - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2022 Segment Product | |
Organization And Basis Of Presentation [Line Items] | |
Date of incorporation | Jun. 23, 2020 |
State of incorporation | DE |
Redomestication date | Aug. 28, 2020 |
Kind of listing | class A common shares |
Number of business segments | Segment | 3 |
Commercial Specialty | |
Organization And Basis Of Presentation [Line Items] | |
Number of product classifications | Product | 4 |
Schedule of Amortized Cost and
Schedule of Amortized Cost and Estimated Fair Value of Company's Fixed Maturities Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | $ 1,151,195 | $ 1,193,746 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 948 | 15,751 |
Fixed maturities, Gross Unrealized losses | (34,014) | (7,631) |
Fixed maturities, Estimated Fair Value | 1,118,129 | 1,201,866 |
U.S. Treasuries | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 242,102 | 149,934 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 301 | 603 |
Fixed maturities, Gross Unrealized losses | (2,076) | (419) |
Fixed maturities, Estimated Fair Value | 240,327 | 150,118 |
Agency Obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 5,697 | |
Fixed maturities, Allowance for Expected Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 1 | |
Fixed maturities, Gross Unrealized losses | (68) | |
Fixed maturities, Estimated Fair Value | 5,630 | |
Obligations of States and Political Subdivisions | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 33,397 | 53,637 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 32 | 1,385 |
Fixed maturities, Gross Unrealized losses | (1,055) | (301) |
Fixed maturities, Estimated Fair Value | 32,374 | 54,721 |
Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 64,187 | 250,007 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 428 | 2,618 |
Fixed maturities, Gross Unrealized losses | (2,776) | (2,284) |
Fixed maturities, Estimated Fair Value | 61,839 | 250,341 |
Asset-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 143,274 | 172,916 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 144 | 700 |
Fixed maturities, Gross Unrealized losses | (5,888) | (974) |
Fixed maturities, Estimated Fair Value | 137,530 | 172,642 |
Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 112,660 | 135,017 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 19 | 2,503 |
Fixed maturities, Gross Unrealized losses | (3,781) | (627) |
Fixed maturities, Estimated Fair Value | 108,898 | 136,893 |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 343,252 | 288,866 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 23 | 5,571 |
Fixed maturities, Gross Unrealized losses | (11,904) | (2,054) |
Fixed maturities, Estimated Fair Value | 331,371 | 292,383 |
Foreign Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 212,323 | 137,672 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 1 | 2,370 |
Fixed maturities, Gross Unrealized losses | (6,534) | (904) |
Fixed maturities, Estimated Fair Value | $ 205,790 | $ 139,138 |
Schedule of Investments in Equi
Schedule of Investments in Equity Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, at fair value | $ 17,870 | $ 99,978 |
Common Stock | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, at fair value | 878 | 75,987 |
Preferred Stock | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, at fair value | $ 16,992 | $ 23,991 |
Investments - Additional Inform
Investments - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2022 USD ($) Entity | Dec. 31, 2021 USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | ||
Investments in a single issuer as a percentage of shareholders' equity | 2.30% | 2% |
Accrued interest receivable related to fixed maturities | $ 6,200,000 | $ 5,200,000 |
Weighted average life of fixed maturities securities | 5 years | |
Maturity period of securities that reinvested to fixed income investments | 2 years | |
Fixed maturity securities with market value | $ 0 | 0 |
Investments in insurance enhanced bonds | $ 20,600,000 | |
Insurance enhanced bonds as a percentage of total cash and invested assets | 1.60% | |
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | $ 20,600,000 | |
Variable Interest Entity, Not Primary Beneficiary | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Number of VIE's | Entity | 4 | |
Ownership interest exceeds respective investments | 3% | |
One of the Company's variable interest VIE's, invests in distressed securities and assets | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Significant variable interest in carrying value of the non-consolidated VIE | $ 5,000,000 | 8,600,000 |
Variable interest entities, maximum exposure to loss | 19,200,000 | 22,800,000 |
Second VIE that invests in distressed securities and assets | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Significant variable interest in carrying value of the non-consolidated VIE | 300,000 | 300,000 |
Variable interest entities, maximum exposure to loss | 17,300,000 | 17,300,000 |
Third VIE that invests in REIT qualifying assets | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Significant variable interest in carrying value of the non-consolidated VIE | 9,600,000 | 11,700,000 |
Variable interest entities, maximum exposure to loss | 9,600,000 | 11,700,000 |
Fourth VIE that invests in Broad Portfolio of Non-Investment Grade Loans | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Significant variable interest in carrying value of the non-consolidated VIE | 99,600,000 | 106,200,000 |
Variable interest entities, maximum exposure to loss | 99,600,000 | $ 106,200,000 |
Assured Guaranty Corporation | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | 6,500,000 | |
Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investments in insurance enhanced bonds | 8,000,000 | |
Federal Home Loan Mortgage Corporation | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | 12,600,000 | |
Ambac Financial Group | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | 1,500,000 | |
U.S. Treasuries | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Gross unrealized losses | 2,076,000 | |
Obligations of States and Political Subdivisions | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Gross unrealized losses | 1,055,000 | |
Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Gross unrealized losses | 2,776,000 | |
Asset-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Gross unrealized losses | $ 5,888,000 | |
Weighted average credit enhancement | 32.20% | |
Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Gross unrealized losses | $ 3,781,000 | |
Weighted average credit enhancement | 47.50% | |
Investments in insurance enhanced bonds | $ 4,800,000 | |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Gross unrealized losses | 11,904,000 | |
Foreign Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Gross unrealized losses | 6,534,000 | |
Collateralized Mortgage Obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investments in insurance enhanced bonds | $ 7,800,000 |
Summary of Amortized Cost and E
Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | $ 57,798 | |
Due in one year through five years, Amortized Cost | 722,611 | |
Due in five years through ten years, Amortized Cost | 36,200 | |
Due in ten years through fifteen years, Amortized Cost | 304 | |
Due after fifteen years, Amortized Cost | 14,161 | |
Fixed maturities, Amortized Cost | 1,151,195 | $ 1,193,746 |
Due in one year or less, Estimated Fair value | 57,486 | |
Due in one year through five years, Estimated Fair value | 707,206 | |
Due in five years through ten years, Estimated Fair value | 32,948 | |
Due in ten years through fifteen years, Estimated Fair value | 277 | |
Due after fifteen years, Estimated Fair value | 11,945 | |
Fixed Maturities, estimated fair value | 1,118,129 | 1,201,866 |
Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 64,187 | |
Fixed maturities, Amortized Cost | 64,187 | 250,007 |
Estimated Fair value | 61,839 | |
Fixed Maturities, estimated fair value | 61,839 | 250,341 |
Asset-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 143,274 | |
Fixed maturities, Amortized Cost | 143,274 | 172,916 |
Estimated Fair value | 137,530 | |
Fixed Maturities, estimated fair value | 137,530 | 172,642 |
Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 112,660 | |
Fixed maturities, Amortized Cost | 112,660 | 135,017 |
Estimated Fair value | 108,898 | |
Fixed Maturities, estimated fair value | $ 108,898 | $ 136,893 |
Summary of Securities with Gros
Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
U.S. Treasuries | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total, Gross Unrealized Losses | $ (2,076) | |
Obligations of States and Political Subdivisions | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total, Gross Unrealized Losses | (1,055) | |
Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total, Gross Unrealized Losses | (2,776) | |
Asset-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total, Gross Unrealized Losses | (5,888) | |
Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total, Gross Unrealized Losses | (3,781) | |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total, Gross Unrealized Losses | (11,904) | |
Foreign Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total, Gross Unrealized Losses | (6,534) | |
Fixed Income Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 971,308 | $ 627,112 |
Less than 12 months, Gross Unrealized Losses | (31,419) | (6,997) |
12 months or longer, Fair Value | 33,992 | 18,972 |
12 months or longer, Gross Unrealized Losses | (2,595) | (634) |
Total, Fair Value | 1,005,300 | 646,084 |
Total, Gross Unrealized Losses | (34,014) | (7,631) |
Fixed Income Securities | U.S. Treasuries | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 187,603 | 114,894 |
Less than 12 months, Gross Unrealized Losses | (2,019) | (390) |
12 months or longer, Fair Value | 643 | 970 |
12 months or longer, Gross Unrealized Losses | (57) | (29) |
Total, Fair Value | 188,246 | 115,864 |
Total, Gross Unrealized Losses | (2,076) | (419) |
Fixed Income Securities | Agency Obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 5,380 | |
Less than 12 months, Gross Unrealized Losses | (68) | |
12 months or longer, Fair Value | 0 | |
12 months or longer, Gross Unrealized Losses | 0 | |
Total, Fair Value | 5,380 | |
Total, Gross Unrealized Losses | (68) | |
Fixed Income Securities | Obligations of States and Political Subdivisions | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 28,204 | 13,346 |
Less than 12 months, Gross Unrealized Losses | (1,055) | (301) |
12 months or longer, Fair Value | 0 | 0 |
12 months or longer, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 28,204 | 13,346 |
Total, Gross Unrealized Losses | (1,055) | (301) |
Fixed Income Securities | Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 44,366 | 143,674 |
Less than 12 months, Gross Unrealized Losses | (2,589) | (2,222) |
12 months or longer, Fair Value | 3,008 | 3,009 |
12 months or longer, Gross Unrealized Losses | (187) | (62) |
Total, Fair Value | 47,374 | 146,683 |
Total, Gross Unrealized Losses | (2,776) | (2,284) |
Fixed Income Securities | Asset-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 97,049 | 102,309 |
Less than 12 months, Gross Unrealized Losses | (4,602) | (703) |
12 months or longer, Fair Value | 20,929 | 10,662 |
12 months or longer, Gross Unrealized Losses | (1,286) | (271) |
Total, Fair Value | 117,978 | 112,971 |
Total, Gross Unrealized Losses | (5,888) | (974) |
Fixed Income Securities | Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 95,440 | 50,448 |
Less than 12 months, Gross Unrealized Losses | (3,743) | (466) |
12 months or longer, Fair Value | 2,062 | 1,286 |
12 months or longer, Gross Unrealized Losses | (38) | (161) |
Total, Fair Value | 97,502 | 51,734 |
Total, Gross Unrealized Losses | (3,781) | (627) |
Fixed Income Securities | Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 318,485 | 129,146 |
Less than 12 months, Gross Unrealized Losses | (11,005) | (1,954) |
12 months or longer, Fair Value | 6,213 | 2,633 |
12 months or longer, Gross Unrealized Losses | (899) | (100) |
Total, Fair Value | 324,698 | 131,779 |
Total, Gross Unrealized Losses | (11,904) | (2,054) |
Fixed Income Securities | Foreign Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 200,161 | 67,915 |
Less than 12 months, Gross Unrealized Losses | (6,406) | (893) |
12 months or longer, Fair Value | 1,137 | 412 |
12 months or longer, Gross Unrealized Losses | (128) | (11) |
Total, Fair Value | 201,298 | 68,327 |
Total, Gross Unrealized Losses | $ (6,534) | $ (904) |
Schedule of Impairments on Inve
Schedule of Impairments on Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | ||||
Impairment related to intent to sell | $ (680) | $ 0 | $ (26,205) | $ 0 |
Total | $ (680) | $ 0 | $ (26,205) | $ 0 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income, Net of Tax (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Investments Debt And Equity Securities [Abstract] | ||||||
Fixed maturities | $ (33,066) | $ 8,120 | ||||
Foreign currency fluctuations | (291) | (145) | ||||
Deferred taxes | 6,732 | (1,571) | ||||
Accumulated other comprehensive income (loss), net of tax | $ (26,625) | $ (12,772) | $ 6,404 | $ 18,968 | $ 9,853 | $ 34,308 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, net of tax | $ (12,772) | $ 9,853 | $ 6,404 | $ 34,308 |
Other comprehensive income (loss) before reclassification, before tax | (26,805) | 11,713 | (79,413) | (19,591) |
Amounts reclassified from accumulated other comprehensive income, before tax | 9,317 | (453) | 38,081 | 706 |
Other comprehensive income (loss), before tax | (17,488) | 11,260 | (41,332) | (18,885) |
Income tax (expense) benefit | 3,635 | (2,145) | 8,303 | 3,545 |
Ending balance, net of tax | (26,625) | 18,968 | (26,625) | 18,968 |
Unrealized Gains and Losses on Available for Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, net of tax | (12,769) | 9,819 | 6,519 | 34,181 |
Other comprehensive income (loss) before reclassification, before tax | (26,518) | 11,797 | (79,267) | (19,389) |
Amounts reclassified from accumulated other comprehensive income, before tax | 9,317 | (453) | 38,081 | 706 |
Other comprehensive income (loss), before tax | (17,201) | 11,344 | (41,186) | (18,683) |
Income tax (expense) benefit | 3,575 | (2,162) | 8,272 | 3,503 |
Ending balance, net of tax | (26,395) | 19,001 | (26,395) | 19,001 |
Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, net of tax | (3) | 34 | (115) | 127 |
Other comprehensive income (loss) before reclassification, before tax | (287) | (84) | (146) | (202) |
Amounts reclassified from accumulated other comprehensive income, before tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), before tax | (287) | (84) | (146) | (202) |
Income tax (expense) benefit | 60 | 17 | 31 | 42 |
Ending balance, net of tax | $ (230) | $ (33) | $ (230) | $ (33) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense (benefit) | $ 626 | $ (844) | $ 4,039 | $ (641) |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications, net of tax | 7,877 | (295) | 30,962 | 521 |
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 | 9,317 | (453) | 38,081 | 706 |
Income tax expense (benefit) | $ (1,440) | $ 158 | $ (7,119) | $ (185) |
Components of Net Realized Inve
Components of Net Realized Investment Gains (Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Schedule Of Available For Sale Securities [Line Items] | |||||
Total net realized investment gains (losses) | $ (9,916) | $ 3,833 | $ (35,301) | $ 7,652 | |
Equity securities, Gross realized gains | 2 | 4,338 | 1,806 | 8,784 | |
Equity securities, Gross realized losses | (2,417) | (943) | (5,566) | (1,021) | |
Equity securities, Total net realized investment gains (losses) | (2,415) | 3,395 | (3,760) | 7,763 | |
Not Designated as Hedging Instrument | Interest Rate Swap | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Gross realized gains | 2,872 | 1,366 | 8,960 | 3,719 | |
Gross realized losses | (1,056) | (1,381) | (2,420) | (3,124) | |
Total net realized investment gains (losses) | [1] | 1,816 | (15) | 6,540 | 595 |
Fixed Income Securities | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Gross realized gains | 456 | 2,300 | 662 | 5,678 | |
Gross realized losses | (9,773) | (1,847) | (38,743) | (6,384) | |
Total net realized investment gains (losses) | $ (9,317) | $ 453 | $ (38,081) | $ (706) | |
[1]Includes periodic net interest settlements related to the derivatives of $1.1 million and $1.4 million for the quarters ended June 30, 2022 and 2021, respectively, and $2.5 million and $2.8 million for the six months ended June 30, 2022 and 2021, respectively. |
Components of Net Realized In_2
Components of Net Realized Investment Gains (Losses) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Available For Sale Securities [Line Items] | ||||
Net interest settlements | $ 1,816 | $ (15) | $ 6,540 | $ 595 |
Interest Rate Swap | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Net interest settlements | $ 1,100 | $ 1,400 | $ 2,500 | $ 2,800 |
Summary of Calculation of Reali
Summary of Calculation of Realized Gains and Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | ||||
Equity securities, Total net realized investment gains (losses) | $ (2,415) | $ 3,395 | $ (3,760) | $ 7,763 |
Less: net gains (losses) recognized during the period on equity securities sold during the period | (498) | 1,429 | 10,616 | 2,805 |
Unrealized gains (losses) recognized during the reporting period on equity securities | $ (1,917) | $ 1,966 | $ (14,376) | $ 4,958 |
Schedule of Proceeds From Sales
Schedule of Proceeds From Sales and Redemptions of Available for Sale Securities (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | ||
Fixed maturities | $ 829,205 | $ 636,040 |
Equity securities | $ 88,726 | $ 42,821 |
Schedule of Investment Income (
Schedule of Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Available For Sale Securities [Line Items] | ||||
Investment income | $ 2,541 | $ 11,268 | $ 9,737 | $ 21,817 |
Investment expense | (611) | (635) | (1,215) | (1,348) |
Net investment income | 1,930 | 10,633 | 8,522 | 20,469 |
Fixed Income Securities | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Investment income | 7,467 | 6,648 | 13,871 | 13,475 |
Equity Securities | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Investment income | 275 | 618 | 609 | 1,293 |
Cash and Cash Equivalents | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Investment income | 99 | 214 | 131 | 264 |
Other Invested Assets | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Investment income | $ (5,300) | $ 3,788 | $ (4,874) | $ 6,785 |
Schedule of Total Investment Re
Schedule of Total Investment Return (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||||
Investments Debt And Equity Securities [Abstract] | |||||||
Net investment income | $ 1,930 | $ 10,633 | $ 8,522 | $ 20,469 | |||
Net realized investment gains (losses) | (9,916) | 3,833 | (35,301) | 7,652 | |||
Change in unrealized holding gains (losses) | (17,488) | 11,260 | (41,332) | (18,885) | |||
Net realized and unrealized investment returns | (27,404) | 15,093 | (76,633) | (11,233) | |||
Total investment return | $ (25,474) | $ 25,726 | $ (68,111) | $ 9,236 | |||
Total investment return % | (1.80%) | 1.80% | [1] | (4.80%) | 0.60% | [1] | |
Average investment portfolio | [2] | $ 1,395,519 | $ 1,452,754 | $ 1,429,227 | $ 1,463,027 | ||
[1]Not annualized.[2]Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period. |
Summary of Estimated Fair Value
Summary of Estimated Fair Values of Bonds Held on Deposit (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated Fair Value | $ 137,259 | $ 148,118 |
On Deposit With Governmental Authorities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated Fair Value | 25,304 | 26,093 |
Held In Trust Pursuant To Third Party Requirements | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated Fair Value | 110,768 | 119,513 |
Letter Of Credit Held For Third Party Requirements | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated Fair Value | $ 1,187 | $ 2,512 |
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 | Jun. 30, 2022 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amount | [1] | $ 213,022 | $ 213,022 |
Fair Value/Assets | [1] | 565 | |
Fair Value/Liabilities | [1] | (8,395) | |
Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 213,022 | 213,022 | |
Fair Value/Assets | $ 565 | ||
Fair Value/Liabilities | $ (8,395) | ||
[1] The derivatives are held by GBLI Holdings, LLC and are guaranteed by Global Indemnity Group, LLC |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) for changes in fair value and net settlements of derivatives | $ 1,816 | $ (15) | $ 6,540 | $ 595 |
Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) for changes in fair value and net settlements of derivatives | 1,100 | 1,400 | 2,500 | 2,800 |
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 | 1,816 | (15) | 6,540 | 914 |
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 | $ 0 | $ 0 | $ 0 | $ (319) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - Other Assets - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Funds needed to post execute swap transaction | $ 2 | $ 1.8 |
Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Margin calls made in connection with interest rate swaps | $ 2.4 | $ 9.8 |
Company's Invested Assets and D
Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | $ 1,118,129 | $ 1,201,866 |
Equity securities | 17,870 | 99,978 |
U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 240,327 | 150,118 |
Agency Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 5,630 | |
Obligations of States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 32,374 | 54,721 |
Mortgage Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 61,839 | 250,341 |
Commercial Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 108,898 | 136,893 |
Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 137,530 | 172,642 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 331,371 | 292,383 |
Foreign Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 205,790 | 139,138 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 1,118,129 | 1,201,866 |
Equity securities | 17,870 | 99,978 |
Derivative instruments | 565 | |
Total invested assets | 1,136,564 | 1,301,844 |
Total invested liabilities | 8,395 | |
Fair Value, Measurements, Recurring | Derivative instruments - Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested liabilities | 8,395 | |
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 | 240,327 | 150,118 |
Equity securities | 0 | 75,750 |
Derivative instruments | 0 | |
Total invested assets | 240,327 | 225,868 |
Total invested liabilities | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Derivative instruments - Liabilities | ||
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 | 874,330 | 1,049,216 |
Equity securities | 16,992 | 23,991 |
Derivative instruments | 565 | |
Total invested assets | 891,887 | 1,073,207 |
Total invested liabilities | 8,395 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Derivative instruments - Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested liabilities | 8,395 | |
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 | 3,472 | 2,532 |
Equity securities | 878 | 237 |
Derivative instruments | 0 | |
Total invested assets | 4,350 | 2,769 |
Total invested liabilities | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Derivative instruments - Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested liabilities | 0 | |
Fair Value, Measurements, Recurring | U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 240,327 | 150,118 |
Fair Value, Measurements, Recurring | U.S. Treasuries | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 240,327 | 150,118 |
Fair Value, Measurements, Recurring | U.S. Treasuries | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. Treasuries | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Agency Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 5,630 | |
Fair Value, Measurements, Recurring | Agency Obligations | 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 | Agency Obligations | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 5,630 | |
Fair Value, Measurements, Recurring | 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 | 32,374 | 54,721 |
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 | 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 | 32,374 | 54,721 |
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 | 0 |
Fair Value, Measurements, Recurring | Mortgage Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 61,839 | 250,341 |
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 | 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 | 60,868 | 250,341 |
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 | 971 | 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 | 108,898 | 136,893 |
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 | 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 | 108,898 | 136,893 |
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 | 0 |
Fair Value, Measurements, Recurring | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 137,530 | 172,642 |
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 | 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 | 136,605 | 171,686 |
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 | 925 | 956 |
Fair Value, Measurements, Recurring | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 331,371 | 292,383 |
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 | 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 | 329,886 | 290,807 |
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 | 1,485 | 1,576 |
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 205,790 | 139,138 |
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 | 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 | 205,699 | 139,138 |
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 | $ 91 | $ 0 |
Changes in Level 3 Investments
Changes in Level 3 Investments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | ||||
Beginning balance | $ 4,288 | $ 2,203 | $ 2,769 | $ 0 |
Included in accumulated other comprehensive income | 23 | 7 | 15 | (32) |
Included in earnings attributable to realized | (102) | 0 | (170) | 0 |
Transfers into level 3 | 607 | 702 | 857 | 702 |
Transfers out of level 3 | 0 | (1,720) | 0 | (1,720) |
Amortization of bond premium and discount, net | 2 | 0 | 2 | 0 |
Purchases | 55 | 43 | 1,479 | 2,285 |
Sales | (523) | 0 | (602) | 0 |
Ending balance | 4,350 | 1,235 | 4,350 | 1,235 |
Gains (losses) included in earnings attributable to the change in unrealized gains (losses) related to assets still held at end of reporting period | $ (9) | $ 0 | $ (14) | $ 0 |
Current Fair Value of Debt (Det
Current Fair Value of Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | $ 0 | $ 126,430 | |
Debt, fair value | 0 | 129,238 | |
7.875% Subordinated Notes due 2047 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | [1] | 0 | 126,430 |
Debt, fair value | [1] | $ 0 | $ 129,238 |
[1]As of December 31, 2021, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $3.6 million. In April 2022, the Company redeemed all of its outstanding 7.875% subordinated notes due 2047 and unamortized debt issuance cost of $3.5 million was written off included in the consolidated statements of operations as loss on extinguishment of debt. |
Current Fair Value of Debt (Par
Current Fair Value of Debt (Parenthetical) (Detail) - 7.875% Subordinated Notes due 2047 - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Apr. 15, 2022 | Apr. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Subordinated Notes percentage | 7.875% | 7.875% | 7.875% | |
Subordinated Notes due date | 2047 | 2047 | 2047 | 2047 |
Unamortized Debt Issuance Costs | $ 3,600 | |||
Write off of unamortized debt issuance costs | $ 3,500 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 15, 2022 | Apr. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
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 | $ (5.3) | $ 3.8 | $ (5.4) | $ 6.8 | |||
Ownership interest exceeds respective investments | 3% | 3% | |||||
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% | 3% | |||||
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 | 2047 | |||
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 | Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 140,197 | $ 152,651 | |
Future Funding Commitments | 31,214 | 31,214 | |
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 | [1] | 5,012 | 8,636 |
Future Funding Commitments | [1] | 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 | [2] | 330 | 349 |
Future Funding Commitments | [2] | 17,000 | 17,000 |
Mortgage Debt Fund, LP | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [3] | 9,592 | 11,707 |
Future Funding Commitments | [3] | 0 | 0 |
Credit Fund, LLC | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [4] | 99,608 | 106,162 |
Future Funding Commitments | [4] | 0 | 0 |
Global Debt Fund, LP | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [5] | 25,655 | 25,797 |
Future Funding Commitments | [5] | $ 0 | $ 0 |
[1]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.[2]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.[3]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.[4]This limited liability company invests in a broad portfolio of non-investment grade loans, secured and unsecured corporate debt, credit default swaps, reverse repurchase agreements and synthetic indices. The Company does have the ability to sell its interest by providing notice to the fund.[5]This limited partnership invests in performing, stressed or distressed securities and loans across the global fixed income markets. 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. |
Allowance for Expected Credit_3
Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables - Schedule of Allowance for Credit Losses Related to Premium Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Premium Receivables | ||||
Beginning balance | $ 2,937 | $ 2,772 | $ 2,996 | $ 2,900 |
Current period provision for expected credit losses | 536 | 172 | 619 | 260 |
Write-offs | (554) | (122) | (696) | (338) |
Ending balance | $ 2,919 | $ 2,822 | $ 2,919 | $ 2,822 |
Allowance for Expected Credit_4
Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables - Schedule of Allowance for Credit Losses Related to Reinsurance Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reinsurance Receivables | ||||
Beginning balance | $ 8,992 | $ 8,992 | $ 8,992 | $ 8,992 |
Current period provision for expected credit losses | 0 | 0 | 0 | 0 |
Write-offs | 0 | 0 | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 | 0 |
Ending balance | $ 8,992 | $ 8,992 | $ 8,992 | $ 8,992 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Income Tax [Line Items] | |||||
Effective income tax expense (benefit) rate | (4.90%) | 11.70% | (13.00%) | 5.10% | |
Net operating loss carryforwards | $ 28 | $ 28 | $ 28.6 | ||
Section 163(j) carryforward | $ 3.5 | $ 3.5 | |||
UNITED STATES | |||||
Income Tax [Line Items] | |||||
Statutory income tax rates | 21% | ||||
BERMUDA | |||||
Income Tax [Line Items] | |||||
Statutory income tax rates | 0% | ||||
IRELAND | Non Trading Income | |||||
Income Tax [Line Items] | |||||
Statutory income tax rates | 25% | ||||
IRELAND | Capital Gain | |||||
Income Tax [Line Items] | |||||
Statutory income tax rates | 33% | ||||
IRELAND | Trading Income | |||||
Income Tax [Line Items] | |||||
Statutory income tax rates | 12.50% |
Components of Income Tax Expens
Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Deferred income tax expense (benefit): | ||||
U.S. Federal | $ (626) | $ 844 | $ (4,039) | $ 641 |
Total deferred income tax expense (benefit) | (626) | 844 | (4,039) | 641 |
Total income tax expense (benefit) | $ (626) | $ 844 | $ (4,039) | $ 641 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Expected tax provision at weighted average tax rate | $ (2,686) | $ 1,516 | $ (6,505) | $ 2,632 |
Adjustments: | ||||
Dividend exclusion | (24) | (19) | (46) | (36) |
Parent (income) loss treated as partnership for tax | 1,827 | (819) | 2,070 | (2,186) |
Other | 257 | 166 | 442 | 231 |
Total income tax expense (benefit) | $ (626) | $ 844 | $ (4,039) | $ 641 |
Expected tax provision at weighted average | 21% | 21% | 21% | 21% |
Adjustments: | ||||
Dividend exclusion, % of Pre-Tax Income | 0.20% | (0.30%) | 0.10% | (0.30%) |
Parent (income) loss treated as partnership for tax, % of Pre-Tax Income | (14.30%) | (11.30%) | (6.70%) | (17.40%) |
Other, % of Pre-Tax Income | (2.00%) | 2.30% | (1.40%) | 1.80% |
Effective income tax expense (benefit) | (4.90%) | 11.70% | (13.00%) | 5.10% |
Summarized Activity in Liabilit
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Insurance [Abstract] | ||||
Balance at beginning of period | $ 770,332 | $ 675,908 | $ 759,904 | $ 662,811 |
Less: Ceded reinsurance receivables | 93,194 | 79,421 | 94,443 | 82,158 |
Net balance at beginning of period | 677,138 | 596,487 | 665,461 | 580,653 |
Incurred losses and loss adjustment expenses related to: | ||||
Current year | 96,189 | 85,409 | 183,947 | 179,603 |
Prior years | (3,571) | 5,529 | (6,634) | 2,118 |
Total incurred losses and loss adjustment expenses | 92,618 | 90,938 | 177,313 | 181,721 |
Paid losses and loss adjustment expenses related to: | ||||
Current year | 29,079 | 38,558 | 42,394 | 60,277 |
Prior years | 30,201 | 38,400 | 89,904 | 91,630 |
Total paid losses and loss adjustment expenses | 59,280 | 76,958 | 132,298 | 151,907 |
Net balance at end of period | 710,476 | 610,467 | 710,476 | 610,467 |
Plus: Ceded reinsurance receivables | 94,185 | 87,151 | 94,185 | 87,151 |
Balance at end of period | $ 804,661 | $ 697,618 | $ 804,661 | $ 697,618 |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (3,571) | $ 5,529 | $ (6,634) | $ 2,118 |
Commercial Specialty | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 300 | (500) | 500 | (3,100) |
Commercial Specialty | Property Lines | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 500 | |||
Commercial Specialty | Property Lines | Accident Years 2015 through 2017 and 2019 through 2021 | ||||
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 2015 through 2021 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (700) | |||
Commercial Specialty | Property Lines | Accident Years 2016, 2017, 2019, and 2020 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,900) | |||
Commercial Specialty | General Liability | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (700) | (800) | ||
Commercial Specialty | General Liability | Prior to Accident Years 2005 and 2010 through 2021 | ||||
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 2000, 2007, 2008, 2013, 2014 and 2019 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (900) | |||
Commercial Specialty | General Liability | Accident Years Prior to 2005, 2006, 2007, 2010 through 2021 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 1,500 | |||
Commercial Specialty | General Liability | Accident years 2000, 2007, 2008, 2011 and 2013 through 2016 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (900) | |||
Commercial Specialty | Professional | Accident Year 2020 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (100) | |||
Commercial Specialty | Professional | Accident Years 2019 and 2020 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (300) | (400) | ||
Commercial Specialty | Professional | Accident Years 2006, 2019 through 2021 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (200) | |||
Reinsurance Operations | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,200) | (1,200) | ||
Reinsurance Operations | Maximum | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (100) | (100) | ||
Reinsurance Operations | Professional | Accident Year 2016 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,200) | (1,200) | ||
Exited Lines | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (2,600) | 6,100 | (6,000) | 5,300 |
Exited Lines | Property Lines | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (500) | (1,100) | 7,400 | |
Exited Lines | Property Lines | Accident Years 2011 and 2016 through 2021 | Property Brokerage | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (300) | (400) | ||
Exited Lines | Property Lines | Accident Years 2019 through 2021 | Farm, Ranch & Stable Lines | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (200) | |||
Exited Lines | Property Lines | Accident Years 2017 through 2021 | Specialty Property | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (400) | |||
Exited Lines | Property Lines | Accident Years 2018 through 2021 | Farm, Ranch & Stable Lines | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (300) | |||
Exited Lines | 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 | 6,500 | |||
Exited Lines | Property Lines | Accident Years 2018 | Property Brokerage | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 8,200 | |||
Exited Lines | Property Lines | Accident Years 2018 and 2020 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 800 | |||
Exited Lines | Property Lines | Accident Years 2017 | Catastrophe | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,100) | |||
Exited Lines | Property Lines | Accident Years 2019 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (500) | |||
Exited Lines | General Liability | Accident Years 2017 and 2018 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (100) | |||
Exited Lines | General Liability | Accident Years 2016, 2017, 2019 and 2021 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (600) | |||
Exited Lines | General Liability | Accident Years 2007, 2015 through 2018 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,200) | |||
Exited Lines | Reinsurance | Accident Years 2017 through 2021 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (2,100) | |||
Exited Lines | Reinsurance | Accident Years 2017 through 2020 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (300) | |||
Exited Lines | Reinsurance | Accident Years 2016 through 2021 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (4,300) | |||
Exited Lines | Reinsurance | Accident Years 2010, 2011, 2017 through 2019 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (900) |
Outstanding Debt (Detail)
Outstanding Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Debt | $ 0 | $ 126,430 | |
7.875% Subordinated Notes due 2047 | |||
Debt Instrument [Line Items] | |||
Debt | [1] | $ 0 | $ 126,430 |
[1]As of December 31, 2021, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $3.6 million. In April 2022, the Company redeemed all of its outstanding 7.875% subordinated notes due 2047 and unamortized debt issuance cost of $3.5 million was written off included in the consolidated statements of operations as loss on extinguishment of debt. |
Outstanding Debt (Parenthetical
Outstanding Debt (Parenthetical) (Detail) - 7.875% Subordinated Notes due 2047 | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Apr. 15, 2022 | Apr. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Subordinated Notes percentage | 7.875% | 7.875% | 7.875% | |
Subordinated Notes due date | 2047 | 2047 | 2047 | 2047 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Apr. 15, 2022 | Apr. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||
Debt Instrument [Line Items] | ||||||||
Debt | $ 0 | $ 0 | $ 126,430,000 | |||||
Interest expense | 410,000 | $ 2,696,000 | 3,005,000 | $ 5,291,000 | ||||
Redemption of aggregate principal amount | 130,000,000 | 0 | ||||||
Loss on extinguishment of debt | $ (3,529,000) | $ (3,529,000) | 0 | |||||
7.875% Subordinated Notes due 2047 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 7.875% | 7.875% | 7.875% | 7.875% | ||||
Debt | [1] | $ 0 | $ 0 | $ 126,430,000 | ||||
Interest expense | 400,000 | 2,600,000 | $ 3,000,000 | 5,200,000 | ||||
Redemption date | Apr. 15, 2022 | |||||||
Debt instrument, redemption description | On April 15, 2022, the Company redeemed the entire $130.0 million in aggregate principal amount of the outstanding 2047 Notes plus accrued and unpaid interest on the 2047 Notes redeemed to, but not including the Redemption Date of April 15, 2022. | |||||||
Redemption of aggregate principal amount | $ 130,000,000 | |||||||
Subordinated Notes due date | 2047 | 2047 | 2047 | 2047 | ||||
Loss on extinguishment of debt | $ 3,500,000 | $ 3,500,000 | ||||||
Margin borrowing facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 2.30% | 2.30% | 0.80% | |||||
Collateral deposited to support borrowing | $ 0 | $ 0 | $ 0 | |||||
Debt Securities, Available-for-Sale, Restriction Type [Extensible Enumeration] | us-gaap:AssetPledgedAsCollateralMember | us-gaap:AssetPledgedAsCollateralMember | us-gaap:AssetPledgedAsCollateralMember | |||||
Debt | $ 0 | $ 0 | $ 0 | |||||
Interest expense | $ 0 | $ 0 | $ 0 | $ 0 | ||||
[1]As of December 31, 2021, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $3.6 million. In April 2022, the Company redeemed all of its outstanding 7.875% subordinated notes due 2047 and unamortized debt issuance cost of $3.5 million was written off included in the consolidated statements of operations as loss on extinguishment of debt. |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||||
Apr. 05, 2021 shares | Jun. 30, 2022 USD ($) Stockholder $ / shares shares | Jun. 30, 2021 $ / shares shares | Jun. 30, 2022 USD ($) Stockholder $ / shares shares | Jun. 30, 2021 $ / shares shares | Dec. 31, 2021 USD ($) | |
Equity [Line Items] | ||||||
Dividend & distribution payable, per share | $ / shares | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | ||
Accrued distributions | $ | $ 1,000,000 | $ 1,000,000 | $ 900,000 | |||
Maximum | ||||||
Equity [Line Items] | ||||||
Accrued preferred distributions | $ | $ 100,000 | $ 100,000 | $ 100,000 | |||
Class A Common Shares | ||||||
Equity [Line Items] | ||||||
Shares repurchased | shares | 11,173 | 7,100 | 15,954 | 16,915 | ||
Average price paid per share | $ / shares | $ 26.28 | $ 27.64 | $ 25.94 | $ 28.34 | ||
Number of shareholders | Stockholder | 155 | 155 | ||||
Class B Common Shares | ||||||
Equity [Line Items] | ||||||
Shares repurchased | shares | 0 | 0 | 0 | 0 | ||
Share conversion | shares | 186,160 | |||||
Number of shareholders | Stockholder | 3 | 3 | ||||
Series A Preferred Interest | ||||||
Equity [Line Items] | ||||||
Number of shareholders | Stockholder | 1 | 1 |
Information with Respect to Cla
Information with Respect to Class A Common Shares that were Surrendered or Repurchased (Detail) - Class A Common Shares - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased | 11,173 | 7,100 | 15,954 | 16,915 | |
Average Price Paid Per Share | $ 26.28 | $ 27.64 | $ 25.94 | $ 28.34 | |
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 | $ 0 | $ 0 | |
January 1-31, 2022 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased | [1],[2] | 4,781 | |||
Average Price Paid Per Share | [1] | $ 25.13 | |||
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 | $ 0 | ||
June 1-30, 2022 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased | [1] | 11,173 | |||
Average Price Paid Per Share | [1] | $ 26.28 | |||
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 | $ 0 | ||
January 1-31, 2021 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased | [1],[2] | 6,720 | |||
Average Price Paid Per Share | [1] | $ 28.59 | |||
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 | $ 0 | ||
March 1-31, 2021 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased | [1],[2] | 3,095 | |||
Average Price Paid Per Share | [1] | $ 29.40 | |||
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 | $ 0 | ||
June 1-30, 2021 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased | [1],[2] | 7,100 | |||
Average Price Paid Per Share | [1] | $ 27.64 | |||
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 | $ 0 | ||
[1]Based on settlement date.[2]Surrendered by employees as payment of taxes withheld on the vesting of restricted stock and/or restricted stock units. |
Schedule of Distributions Decla
Schedule of Distributions Declared (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||||||||||
Jun. 30, 2022 | Jun. 02, 2022 | Mar. 31, 2022 | Mar. 03, 2022 | Jun. 30, 2021 | Jun. 05, 2021 | Mar. 31, 2021 | Feb. 14, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Dividends Payable [Line Items] | |||||||||||
Approval Date | Jun. 02, 2022 | Mar. 03, 2022 | Jun. 05, 2021 | Feb. 14, 2021 | |||||||
Record Date | Jun. 20, 2022 | Mar. 21, 2022 | Jun. 21, 2021 | Mar. 22, 2021 | |||||||
Payment Date | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |||||||
Payment of dividends | $ 3,602 | $ 3,597 | $ 3,579 | $ 3,570 | $ 7,255 | $ 7,365 | |||||
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] | $ 56 | $ 216 | ||||||||
[1] Represents distributions declared on unvested shares, net of forfeitures. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Aug. 27, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Series A Preferred Interest | ||||||
Related Party Transaction [Line Items] | ||||||
Preferred interests, non-voting description | While these preferred interests are non-voting, the preferred shareholders are entitled to appoint two additional members to Global Indemnity Group, LLC’s Board of Directors whenever the “Unpaid Targeted Priority Return” with respect to the preferred interests exceed zero immediately following six or more “Distribution Dates”, whether or not such Distribution Dates occur consecutively | |||||
Fox Paine Entities | ||||||
Related Party Transaction [Line Items] | ||||||
Company's total voting power | 82.80% | 82.80% | ||||
Wyncote LLC | Series A Preferred Interest | ||||||
Related Party Transaction [Line Items] | ||||||
Preferred shares issued | 4,000 | |||||
Shares issued, price per share | $ 1,000 | |||||
Preferred shares issued, value | $ 4,000,000 | |||||
Fox Paine and Company | ||||||
Related Party Transaction [Line Items] | ||||||
Management fees | $ 700,000 | $ 700,000 | $ 1,400,000 | $ 1,300,000 | ||
Prepaid management fees | $ 500,000 | $ 500,000 | $ 1,900,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jan. 31, 2021 | Dec. 31, 2017 | Dec. 31, 2014 |
Commitments and Contingencies [Line Items] | |||||
Commitment to purchase alternative investment | $ 25,000 | $ 50,000 | $ 50,000 | ||
Future Funding Commitments | $ 31,214 | $ 31,214 | |||
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 | ||||
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 |
Share-Based Compensation Plans
Share-Based Compensation Plans - Additional Information (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Performance Based Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options awarded | 140,000 | |||||
Percentage of shares vested on each anniversary of the grant date | 33% | |||||
Vesting year | 3 years | |||||
Vesting period expiration date | 10 years | |||||
Options forfeited | 46,667 | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options awarded | 0 | 0 | 0 | |||
Unvested stock options forfeited | 0 | 0 | 0 | 300,000 | ||
Restricted Stock | Key Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted | 0 | 0 | 0 | 0 | ||
Restricted Stock | Non Employee Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted | 25,760 | 19,738 | 50,570 | 39,744 | ||
Weighted average grant date value of shares granted | $ 25.96 | $ 28.71 | $ 25.80 | $ 28.51 | ||
Shares deferred for vesting | 8,827 | 4,838 | 16,140 | 9,741 | ||
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares vested | 35,442 | 22,540 | 61,522 | 42,977 | ||
Restricted Stock Units | Key Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted | 0 | 0 | 0 | 0 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Numerator: | |||||
Net income (loss) | $ (12,162) | $ 6,375 | $ (26,935) | $ 11,892 | |
Less: preferred stock distributions | 110 | 110 | 220 | 220 | |
Net income (loss) available to common shareholders | $ (12,272) | $ 6,265 | $ (27,155) | $ 11,672 | |
Denominator: | |||||
Weighted average shares for basic earnings per share | 14,543,234 | 14,412,446 | 14,529,170 | 14,396,523 | |
Weighted average shares for diluted earnings per share | [1] | 14,543,234 | 14,681,731 | 14,529,170 | 14,651,124 |
Basic | [2] | $ (0.84) | $ 0.43 | $ (1.87) | $ 0.81 |
Diluted | [2] | $ (0.84) | $ 0.43 | $ (1.87) | $ 0.80 |
Restricted Stock | |||||
Denominator: | |||||
Non-vested restricted stock, units and options | 0 | 12,310 | 0 | 11,254 | |
Restricted Stock Units | |||||
Denominator: | |||||
Non-vested restricted stock, units and options | 0 | 140,785 | 0 | 129,035 | |
Stock Options | |||||
Denominator: | |||||
Non-vested restricted stock, units and options | 0 | 116,190 | 0 | 114,312 | |
[1]For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period.[2]For the quarter and six months ended June 30, 2022, “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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Incremental shares included in calculation of diluted EPS | 14,749,370 | 14,728,182 | ||
Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from calculation of diluted earnings per share | 393,333 | 540,000 | 393,333 | 540,000 |
Restricted Stock Units Diluted | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Non-vested restricted stock and options | 110,417 | 103,670 | ||
Stock Options Diluted | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Non-vested restricted stock and options | 95,719 | 95,342 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments managed | 3 |
Summary of Business Segment Inf
Summary of Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||
Revenues: | ||||||
Gross written premiums | $ 196,823 | $ 175,236 | $ 387,806 | $ 338,794 | ||
Net written premiums | 167,158 | 160,653 | 326,640 | 308,336 | ||
Net earned premiums | 155,749 | 149,408 | 304,572 | 293,108 | ||
Other income (loss) | 174 | 512 | 613 | 920 | ||
Total revenues | 155,923 | 149,920 | 305,185 | 294,028 | ||
Losses and Expenses: | ||||||
Net losses and loss adjustment expenses | 92,618 | 90,938 | 177,313 | 181,721 | ||
Acquisition costs and other underwriting expenses | 61,098 | 57,213 | 117,790 | 111,977 | ||
Income (loss) from segments | 2,207 | 1,769 | 10,082 | 330 | ||
Unallocated Items: | ||||||
Net investment income | 1,930 | 10,633 | 8,522 | 20,469 | ||
Net realized investment gains (losses) | (9,916) | 3,833 | (35,301) | 7,652 | ||
Other income (loss) | (77) | 9 | (90) | (22) | ||
Corporate and other operating expenses | (2,993) | (6,329) | (7,653) | (10,605) | ||
Interest expense | (410) | (2,696) | (3,005) | (5,291) | ||
Loss on extinguishment of debt | (3,529) | (3,529) | 0 | |||
Income (loss) before income taxes | (12,788) | 7,219 | (30,974) | 12,533 | ||
Income tax benefit (expense) | 626 | (844) | 4,039 | (641) | ||
Net income (loss) | (12,162) | 6,375 | (26,935) | 11,892 | ||
Total assets | 1,861,779 | 1,937,317 | 1,861,779 | 1,937,317 | $ 2,012,809 | |
Segment Assets | ||||||
Unallocated Items: | ||||||
Total assets | 1,713,915 | 1,566,637 | 1,713,915 | 1,566,637 | ||
Corporate Assets | ||||||
Unallocated Items: | ||||||
Total assets | 147,864 | 370,680 | 147,864 | 370,680 | ||
Commercial Specialty | ||||||
Revenues: | ||||||
Gross written premiums | 109,797 | 99,406 | 214,063 | 188,740 | ||
Net written premiums | 101,171 | 91,647 | 199,484 | 173,819 | ||
Net earned premiums | 95,172 | 81,965 | 186,935 | 160,657 | ||
Other income (loss) | 260 | 208 | 519 | 452 | ||
Total revenues | 95,432 | 82,173 | 187,454 | 161,109 | ||
Losses and Expenses: | ||||||
Net losses and loss adjustment expenses | 56,042 | 42,669 | 108,095 | 92,459 | ||
Acquisition costs and other underwriting expenses | 36,222 | 30,577 | 69,911 | 59,629 | ||
Income (loss) from segments | 3,168 | 8,927 | 9,448 | 9,021 | ||
Unallocated Items: | ||||||
Net investment income | 0 | 0 | 0 | 0 | ||
Net realized investment gains (losses) | 0 | 0 | 0 | 0 | ||
Other income (loss) | 0 | 0 | 0 | 0 | ||
Corporate and other operating expenses | 0 | 0 | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Loss on extinguishment of debt | 0 | 0 | ||||
Income (loss) before income taxes | 0 | 0 | 0 | 0 | ||
Income tax benefit (expense) | 0 | 0 | 0 | 0 | ||
Net income (loss) | 0 | 0 | 0 | 0 | ||
Total assets | 0 | 0 | 0 | 0 | ||
Commercial Specialty | Segment Assets | ||||||
Unallocated Items: | ||||||
Total assets | 1,002,120 | 905,240 | 1,002,120 | 905,240 | ||
Commercial Specialty | Corporate Assets | ||||||
Unallocated Items: | ||||||
Total assets | 0 | 0 | 0 | 0 | ||
Reinsurance Operations | ||||||
Revenues: | ||||||
Gross written premiums | [1] | 46,394 | 24,487 | 87,839 | 46,438 | |
Net written premiums | [1] | 46,394 | 24,487 | 87,839 | 46,438 | |
Net earned premiums | [1] | 38,596 | 18,061 | 73,559 | 34,859 | |
Other income (loss) | [1] | (61) | 14 | (81) | (42) | |
Total revenues | [1] | 38,535 | 18,075 | 73,478 | 34,817 | |
Losses and Expenses: | ||||||
Net losses and loss adjustment expenses | [1] | 22,481 | 11,600 | 43,938 | 22,475 | |
Acquisition costs and other underwriting expenses | [1] | 14,369 | 6,198 | 26,546 | 11,977 | |
Income (loss) from segments | [1] | 1,685 | 277 | 2,994 | 365 | |
Unallocated Items: | ||||||
Net investment income | [1] | 0 | 0 | 0 | 0 | |
Net realized investment gains (losses) | [1] | 0 | 0 | 0 | 0 | |
Other income (loss) | [1] | 0 | 0 | 0 | 0 | |
Corporate and other operating expenses | [1] | 0 | 0 | 0 | 0 | |
Interest expense | [1] | 0 | 0 | 0 | 0 | |
Loss on extinguishment of debt | [1] | 0 | 0 | |||
Income (loss) before income taxes | [1] | 0 | 0 | 0 | 0 | |
Income tax benefit (expense) | [1] | 0 | 0 | 0 | 0 | |
Net income (loss) | [1] | 0 | 0 | 0 | 0 | |
Total assets | [1] | 0 | 0 | 0 | 0 | |
Reinsurance Operations | Segment Assets | ||||||
Unallocated Items: | ||||||
Total assets | [1] | 326,804 | 191,152 | 326,804 | 191,152 | |
Reinsurance Operations | Corporate Assets | ||||||
Unallocated Items: | ||||||
Total assets | [1] | 0 | 0 | 0 | 0 | |
Exited Lines | ||||||
Revenues: | ||||||
Gross written premiums | 40,632 | 51,343 | 85,904 | 103,616 | ||
Net written premiums | 19,593 | 44,519 | 39,317 | 88,079 | ||
Net earned premiums | 21,981 | 49,382 | 44,078 | 97,592 | ||
Other income (loss) | (25) | 290 | 175 | 510 | ||
Total revenues | 21,956 | 49,672 | 44,253 | 98,102 | ||
Losses and Expenses: | ||||||
Net losses and loss adjustment expenses | 14,095 | 36,669 | 25,280 | 66,787 | ||
Acquisition costs and other underwriting expenses | 10,507 | 20,438 | 21,333 | 40,371 | ||
Income (loss) from segments | (2,646) | (7,435) | (2,360) | (9,056) | ||
Unallocated Items: | ||||||
Net investment income | 0 | 0 | 0 | 0 | ||
Net realized investment gains (losses) | 0 | 0 | 0 | 0 | ||
Other income (loss) | 0 | 0 | 0 | 0 | ||
Corporate and other operating expenses | 0 | 0 | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Loss on extinguishment of debt | 0 | 0 | ||||
Income (loss) before income taxes | 0 | 0 | 0 | 0 | ||
Income tax benefit (expense) | 0 | 0 | 0 | 0 | ||
Net income (loss) | 0 | 0 | 0 | 0 | ||
Total assets | 0 | 0 | 0 | 0 | ||
Exited Lines | Segment Assets | ||||||
Unallocated Items: | ||||||
Total assets | 384,991 | 470,245 | 384,991 | 470,245 | ||
Exited Lines | Corporate Assets | ||||||
Unallocated Items: | ||||||
Total assets | $ 0 | $ 0 | $ 0 | $ 0 | ||
[1]External business only, excluding business assumed from affiliates. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - American Reliable - Everett Cash Mutual Insurance $ in Millions | Aug. 08, 2022 USD ($) |
Subsequent Event [Line Items] | |
Acquisition amount | $ 10 |
Consideration to be paid | $ 40 |