Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 25, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36777 | ||
Entity Registrant Name | JAMES RIVER GROUP HOLDINGS, LTD. | ||
Entity Incorporation, State or Country Code | D0 | ||
Entity Tax Identification Number | 98-0585280 | ||
Entity Address, Address Line Three | Wellesley House | ||
Entity Address, Address Line Two | 2nd Floor | ||
Entity Address, Address Line One | 90 Pitts Bay Road | ||
Entity Address, City or Town | Pembroke | ||
Entity Address, Postal Zip Code | HM08 | ||
Entity Address, Country | BM | ||
City Area Code | 441 | ||
Local Phone Number | 278-4580 | ||
Title of 12(b) Security | Common Shares, par value $0.0002 per share | ||
Trading Symbol | JRVR | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,362,783,768 | ||
Entity Common Stock, Shares Outstanding | 37,448,314 | ||
Documents Incorporated by Reference | Portions of the James River Group Holdings, Ltd. Proxy Statement or an amendment to this Annual Report on Form 10-K to be filed with the Securities and Exchange Commission within 120 days after the year covered by this Form 10-K with respect to the 2022 Annual General Meeting of Shareholders are incorporated by reference into Part III hereof. | ||
Entity Central Index Key | 0001620459 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Charlotte, North Carolina |
Auditor Firm ID | 42 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Invested assets: | ||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: 2021 – $1,643,865; 2020 – $1,690,890) | $ 1,677,561 | $ 1,783,642 |
Equity securities, at fair value (cost: 2021 – $95,783; 2020 – $81,698) | 108,410 | 88,975 |
Bank loan participations, at fair value | 156,043 | 147,604 |
Short-term investments | 136,563 | 130,289 |
Other invested assets | 51,908 | 46,548 |
Total invested assets | 2,130,485 | 2,197,058 |
Cash and cash equivalents | 190,123 | 162,260 |
Restricted cash equivalents | 102,005 | 859,920 |
Accrued investment income | 11,037 | 10,980 |
Premiums receivable and agents’ balances, net | 393,967 | 369,577 |
Reinsurance recoverable on unpaid losses, net | 1,348,628 | 805,684 |
Reinsurance recoverable on paid losses | 82,235 | 46,118 |
Prepaid reinsurance premiums | 291,498 | 243,741 |
Deferred policy acquisition costs | 68,526 | 62,953 |
Intangible assets, net | 36,039 | 36,402 |
Goodwill | 181,831 | 181,831 |
Deferred tax assets, net | 26,430 | 0 |
Income taxes receivable | 3,337 | 4,433 |
Other assets | 82,409 | 82,115 |
Total assets | 4,948,550 | 5,063,072 |
Liabilities: | ||
Reserve for losses and loss adjustment expenses | 2,748,473 | 2,192,080 |
Unearned premiums | 727,552 | 630,371 |
Payables to reinsurers | 135,617 | 110,431 |
Funds held | 97,360 | 859,920 |
Senior debt | 262,300 | 262,300 |
Junior subordinated debt | 104,055 | 104,055 |
Accrued expenses | 57,920 | 55,989 |
Deferred tax liabilities, net | 0 | 1,105 |
Other liabilities | 89,911 | 51,213 |
Total liabilities | 4,223,188 | 4,267,464 |
Commitments and contingent liabilities | ||
Shareholders’ equity: | ||
Common Shares – $0.0002 par value; 200,000,000 shares authorized. 2021 and 2020: 37,373,066 and 30,649,261 shares issued and outstanding, respectively | 7 | 6 |
Preferred Shares – 2021 and 2020: $0.00125 par value; 20,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 862,040 | 664,476 |
Retained (deficit) earnings | (166,663) | 49,227 |
Accumulated other comprehensive income | 29,978 | 81,899 |
Total shareholders’ equity | 725,362 | 795,608 |
Total liabilities and shareholders’ equity | $ 4,948,550 | $ 5,063,072 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fixed maturity securities, available-for-sale, at amortized cost (in dollars) | $ 1,643,865 | |
Equity securities, at cost (in dollars) | $ 95,783 | $ 81,698 |
Common stock, par value (in dollars per share) | $ 0.0002 | $ 0.0002 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 37,373,066 | 30,649,261 |
Common stock, shares outstanding (in shares) | 37,373,066 | 30,649,261 |
Preferred stock par value (in dollars per share) | $ 0.00125 | $ 0.00125 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Fixed maturity securities | ||
Fixed maturity securities, available-for-sale, at amortized cost (in dollars) | $ 1,643,865 | $ 1,690,890 |
Consolidated Statements of (Los
Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Gross written premiums | $ 1,507,299 | $ 1,257,000 | $ 1,470,735 |
Ceded written premiums | (762,919) | (609,226) | (574,585) |
Net written premiums | 744,380 | 647,774 | 896,150 |
Change in net unearned premiums | (48,786) | (40,968) | (72,404) |
Net earned premiums | 695,594 | 606,806 | 823,746 |
Net investment income | 56,865 | 73,368 | 75,652 |
Net realized and unrealized gains (losses) on investments | 15,564 | (16,030) | (2,919) |
Other income | 4,857 | 4,545 | 10,646 |
Total revenues | 772,880 | 668,689 | 907,125 |
Expenses: | |||
Losses and loss adjustment expenses | 792,352 | 478,545 | 672,102 |
Other operating expenses | 164,692 | 165,498 | 170,908 |
Other expenses | 2,585 | 2,138 | 1,055 |
Interest expense | 8,922 | 10,033 | 10,596 |
Amortization of intangible assets | 363 | 538 | 597 |
Total expenses | 968,914 | 656,752 | 855,258 |
(Loss) income before income taxes | (196,034) | 11,937 | 51,867 |
Income tax (benefit) expense: | |||
Current | (2,835) | 11,534 | 18,453 |
Deferred | (20,400) | (4,421) | (4,925) |
Total income tax (benefit) expense | (23,235) | 7,113 | 13,528 |
Net (loss) income | (172,799) | 4,824 | 38,339 |
Other comprehensive (losses) income: | |||
Net unrealized (losses) gains, net of taxes of $(7,135) in 2021, $6,874 in 2020, and $3,358 in 2019 | (51,921) | 50,785 | 46,942 |
Total comprehensive (loss) income | $ (224,720) | $ 55,609 | $ 85,281 |
Per share data: | |||
Basic (loss) earnings per share (in dollars per share) | $ (4.94) | $ 0.16 | $ 1.27 |
Diluted (loss) earnings per share (in dollars per share) | (4.94) | 0.16 | 1.25 |
Dividend declared per share (in dollars per share) | $ 1.20 | $ 1.20 | $ 1.20 |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 34,956,957 | 30,552,210 | 30,275,184 |
Diluted (in shares) | 34,956,957 | 30,884,416 | 30,673,924 |
Consolidated Statements of (L_2
Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net unrealized gains (losses), taxes | $ (7,135) | $ 6,874 | $ 3,358 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Shares | Preferred Shares | Additional Paid-in Capital | Retained (Deficit) Earnings | Retained (Deficit) EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) |
Balances at Dec. 31, 2018 | $ 709,241,000 | $ 8,280,000 | $ 6,000 | $ 0 | $ 645,310,000 | $ 79,753,000 | $ 8,280,000 | $ (15,828,000) |
Balances (in shares) at Dec. 31, 2018 | 29,988,460 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 38,339,000 | 38,339,000 | ||||||
Other comprehensive (loss) income | 46,942,000 | 46,942,000 | ||||||
Dividends | (36,786,000) | (36,786,000) | ||||||
Exercise of stock options (in shares) | 345,434 | |||||||
Exercise of stock options | 7,124,000 | 7,124,000 | ||||||
Vesting of RSUs (in shares) | 90,497 | |||||||
Vesting of RSUs | (1,737,000) | (1,737,000) | ||||||
Compensation expense under share incentive plans | 7,178,000 | 7,178,000 | ||||||
Balances at Dec. 31, 2019 | 778,581,000 | $ 6,000 | 0 | 657,875,000 | 89,586,000 | 31,114,000 | ||
Balances (ASU 2019-05) at Dec. 31, 2019 | (7,827,000) | (7,827,000) | ||||||
Balances (ASU 2016-13) at Dec. 31, 2019 | $ (265,000) | $ (265,000) | ||||||
Balances (in shares) at Dec. 31, 2019 | 30,424,391 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 4,824,000 | 4,824,000 | ||||||
Other comprehensive (loss) income | 50,785,000 | 50,785,000 | ||||||
Dividends | (37,091,000) | (37,091,000) | ||||||
Exercise of stock options (in shares) | 113,346 | |||||||
Exercise of stock options | 1,327,000 | 1,327,000 | ||||||
Vesting of RSUs (in shares) | 111,524 | |||||||
Vesting of RSUs | (2,351,000) | (2,351,000) | ||||||
Compensation expense under share incentive plans | 7,625,000 | 7,625,000 | ||||||
Balances at Dec. 31, 2020 | $ 795,608,000 | $ 6,000 | 0 | 664,476,000 | 49,227,000 | 81,899,000 | ||
Balances (in shares) at Dec. 31, 2020 | 30,649,261 | 30,649,261 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | $ (172,799,000) | (172,799,000) | ||||||
Other comprehensive (loss) income | (51,921,000) | (51,921,000) | ||||||
Dividends | (43,091,000) | (43,091,000) | ||||||
Issuance of common shares (in shares) | 6,497,500 | |||||||
Issuance of common shares | 192,107,000 | $ 1,000 | 192,106,000 | |||||
Exercise of stock options (in shares) | 93,446 | |||||||
Exercise of stock options | 1,671,000 | 1,671,000 | ||||||
Vesting of RSUs (in shares) | 132,859 | |||||||
Vesting of RSUs | (2,871,000) | (2,871,000) | ||||||
Compensation expense under share incentive plans | 6,658,000 | 6,658,000 | ||||||
Balances at Dec. 31, 2021 | $ 725,362,000 | $ 7,000 | $ 0 | $ 862,040,000 | $ (166,663,000) | $ 29,978,000 | ||
Balances (in shares) at Dec. 31, 2021 | 37,373,066 | 37,373,066 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Operating activities | ||||
Net (loss) income | $ (172,799) | $ 4,824 | $ 38,339 | |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||
Deferred policy acquisition costs | (75,236) | (76,525) | (91,449) | |
Amortization of policy acquisition costs | 69,663 | 75,578 | 83,893 | |
Net realized and unrealized (gains) losses on investments | (15,564) | 16,030 | 2,919 | |
Distributions from equity method investments | 2,434 | 3,162 | 2,834 | |
Income from equity method investments | (918) | (3,208) | (4,598) | |
Deferred U.S. federal income tax benefit | (20,400) | (4,421) | (4,925) | |
Provision for depreciation and amortization | 4,715 | 5,019 | 4,063 | |
Share based compensation expense | 6,658 | 7,625 | 7,178 | |
Excess tax benefits from equity incentive plan transactions | (208) | (679) | (1,099) | |
Change in operating assets and liabilities: | ||||
Reserve for losses and loss adjustment expenses | 556,393 | 146,574 | 384,047 | |
Unearned premiums | 97,181 | 105,994 | 137,904 | |
Premiums receivable and agents’ balances | (46,865) | (115) | (61,563) | |
Reinsurance balances | (601,632) | (213,264) | (235,632) | |
Funds held | (762,560) | (339,244) | 1,199,164 | |
Payable to insurance companies | 2,286 | (396) | 263 | |
Other | 43,306 | (784) | 27,684 | |
Net cash provided by (used in) operating activities | [1] | (913,546) | (273,830) | 1,489,022 |
Fixed maturity securities: | ||||
Purchases | (362,537) | (573,482) | (450,793) | |
Sales | 135,913 | 37,674 | 121,245 | |
Maturities and calls | 296,170 | 240,322 | 128,809 | |
Equity Securities: | ||||
Purchases | (21,845) | (16,713) | (4,975) | |
Sales | 7,227 | 6,838 | 8,656 | |
Bank loan participations: | ||||
Purchases | (126,369) | (77,965) | (102,794) | |
Sales | 65,291 | 135,664 | 48,415 | |
Maturities | 59,799 | 32,653 | 45,277 | |
Other invested assets: | ||||
Purchases | (12,394) | (1,937) | 0 | |
Return of capital | 1,758 | 353 | 1,877 | |
Repayments and redemptions | 3,760 | 16,292 | 10,998 | |
Securities receivable or payable, net | 1,627 | (1,777) | 5,404 | |
Short-term investments, net | (6,274) | 26,636 | (74,959) | |
Purchases of property and equipment | (6,303) | (549) | (519) | |
Net cash provided by (used in) investing activities | 35,823 | (175,991) | (263,359) | |
Financing activities | ||||
Senior debt issuances | 0 | 164,000 | 60,000 | |
Senior debt repayments | 0 | (60,000) | (20,000) | |
Dividends paid | (43,236) | (37,051) | (36,720) | |
Issuances of common shares - public offering | 192,107 | 0 | 0 | |
Issuances of common shares under equity incentive plans | 1,877 | 2,580 | 8,286 | |
Common share repurchases | (3,077) | (3,604) | (2,899) | |
Other financing activities | 0 | 0 | (711) | |
Net cash provided by financing activities | 147,671 | 65,925 | 7,956 | |
Change in cash, cash equivalents, and restricted cash equivalents | (730,052) | (383,896) | 1,233,619 | |
Cash, cash equivalents, and restricted cash equivalents at beginning of year | 1,022,180 | 1,406,076 | 172,457 | |
Cash, cash equivalents, and restricted cash equivalents at end of year | 292,128 | 1,022,180 | 1,406,076 | |
Supplemental information | ||||
U.S. federal income taxes (refunded) paid, net | (3,932) | 17,236 | 18,719 | |
Interest paid | 9,927 | 11,305 | 12,354 | |
Restricted cash equivalents at beginning of year | 859,920 | 1,199,164 | 0 | |
Restricted cash equivalents at end of year | 102,005 | 859,920 | 1,199,164 | |
Change in restricted cash equivalents | $ (757,915) | $ (339,244) | $ 1,199,164 | |
[1] | Cash (used in) provided by operating activities for the years ended December 31, 2021, 2020, and 2019 primarily reflects the activity in restricted cash equivalents above. As permitted under the agreements establishing the Indemnity Trust and the LPT Trust, we have withdrawn collateral from the Indemnity Trust and the LPT Trust to fund the Loss Fund Trust as required under the Administrative Services Agreement. Amounts on deposit in the Loss Fund Trust are included in restricted cash equivalents on the Company's consolidated balance sheets. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Amounts Recoverable from an Indemnifying Party and Reinsurer on Legacy Commercial Auto Book ”. Excluding the restricted cash activity above, cash (used in) provided by operating activities was $(155.6) million, $65.4 million, and $289.9 million for the years ended December 31, 2021, 2020, and 2019, respectively. The cash used in operating activities (excluding restricted cash equivalents) in 2021 was largely driven by the $317.6 million of reinsurance premium paid in September 2021 to effect the LPT transaction. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash provided by operating activities, excluding the reduction in collateral funds | $ (155.6) | $ 65.4 | $ 289.9 |
Loss Portfolio Transfer | Excess and Surplus Lines | |||
Payment to effect a loss portfolio transfer reinsurance transaction | $ 317.6 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Organization James River Group Holdings, Ltd. (referred to as “JRG Holdings” or, with its subsidiaries, the “Company”) is an exempted holding company registered in Bermuda, organized for the purpose of acquiring and managing insurance and reinsurance entities. The Company owns five insurance companies based in the United States (“U.S.”) focused on specialty insurance niches and two Bermuda-based reinsurance companies as described below: • James River Group Holdings UK Limited (“James River UK”) is an insurance holding company formed in 2015 in the United Kingdom (“U.K.”). The Company contributed James River Group, Inc. (“James River Group”), a U.S. insurance holding company, to James River UK in 2015. • James River Group is a Delaware domiciled insurance holding company formed in 2002, which owns all of the Company’s U.S.-based subsidiaries, either directly or indirectly through one of its wholly-owned U.S. subsidiaries. James River Group oversees the Company’s U.S. insurance operations and maintains all of the outstanding debt in the U.S. • James River Insurance Company (“James River Insurance”) is an Ohio domiciled excess and surplus lines insurance company that, with its wholly-owned insurance subsidiary, James River Casualty Company, is authorized to write business in every state and the District of Columbia. • Falls Lake National Insurance Company (“Falls Lake National”) is an Ohio domiciled insurance company which wholly owns Stonewood Insurance Company (“Stonewood Insurance”), a North Carolina domiciled company, and Falls Lake Fire and Casualty Company, a California domiciled company. Falls Lake National primarily writes specialty admitted fronting and program business and individual risk workers' compensation insurance. • JRG Reinsurance Company Ltd. (“JRG Re”) was formed in 2007 and commenced operations in 2008. JRG Re, a Bermuda domiciled reinsurer, primarily provides non-catastrophe casualty reinsurance to U.S. third parties and, through December 31, 2017, to the Company’s U.S.-based insurance subsidiaries. • Carolina Re Ltd ("Carolina Re") was formed in 2018 and as of January 1, 2018 provides reinsurance to the Company's U.S.-based insurance subsidiaries. Carolina Re is also the cedent on a stop loss reinsurance treaty with JRG Re. Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), which vary in some respects from statutory accounting practices (“SAP”) which are prescribed or permitted by the various state insurance departments in the U.S. or by insurance regulators in Bermuda. The accompanying consolidated financial statements include the accounts and operations of the Company and its subsidiaries. Intercompany transactions and balances have been eliminated. Estimates and Assumptions Preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates. Fixed Maturity and Equity Securities Fixed maturity securities classified as “available-for-sale” are carried at fair value, and unrealized gains and losses on such securities, net of any deferred taxes, are reported as a separate component of accumulated other comprehensive income. The Company does not have any securities classified as “held-to-maturity” or “trading”. Fair value generally represents quoted market value prices for securities traded in the public marketplace or prices analytically determined using bid or closing prices for securities not traded in the public marketplace. Premiums and discounts on mortgage-backed securities and asset-backed securities are amortized or accrued using the constant yield method which considers anticipated prepayments at the date of purchase. To the extent that the estimated lives of such securities change as a result of changes in estimated prepayment rates, the adjustments are included in net investment income using the retrospective method. Realized investment gains or losses are determined on a specific identification basis. Interest income is recognized as earned, and dividend income is recognized on the ex-dividend date. The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments on January 1, 2020. This update changed the impairment model for available-for-sale fixed maturities and requires the Company to determine whether unrealized losses on available-for-sale fixed maturities are due to credit-related factors. An allowance for credit losses is established for any credit-related impairments, limited to the amount by which fair value is below amortized cost. Changes in the allowance for credit losses are recognized in earnings and included in n et realized and unrealized gains (losses) on investments . Unrealized losses that are not credit-related continue to be recognized in other comprehensive income. The Company considers the extent to which fair value is below amortized cost in determining whether a credit-related loss exists. The Company also considers the credit quality rating of the security, with a special emphasis on securities downgraded below investment grade. A comparison is made between the present value of expected future cash flows for a security and its amortized cost. If the present value of future expected cash flows is less than amortized cost, a credit loss is presumed to exist and an allowance for credit losses is established. Management may conclude that a qualitative analysis is sufficient to support its conclusion that the present value of the expected cash flows equals or exceeds a security’s amortized cost. Bank Loan Participations Bank loan participations are managed by a specialized outside investment manager. In connection with the adoption of ASU 2016-13, the Company elected the fair value option in accounting for bank loan participations effective January 1, 2020. Under the fair value option, bank loan participations are measured at fair value, and changes in unrealized gains and losses in bank loan participations are reported in our income statement as net realized and unrealized gains (losses) on investments. Losses due to credit-related impairments on bank loan participations are determined based upon consultations and advice from the Company's specialized investment manager and consideration of any adverse situations that could affect the borrower's ability to repay, the estimated value of underlying collateral, and other relevant factors. Interest income is accrued on the unpaid principal balance. Discounts and premiums are amortized to income using the interest method. Prior to the election of the fair value option on January 1, 2020, bank loan participations were generally stated at their outstanding unpaid principal balances net of unamortized premiums or discounts and net of any allowance for credit losses. The allowance for credit losses was maintained at a level considered adequate to absorb estimated probable credit losses. Generally, the accrual of interest on a bank loan participation is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest. A bank loan participation may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Interest received on nonaccrual loans generally is reported as investment income. There were no bank loans on nonaccrual status at December 31, 2021 or 2020. Generally, bank loan participations are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Other Invested Assets Other invested assets at December 31, 2021 and 2020 include the Company’s interests in private debt and equity investments. The investments are primarily focused in renewable energy, limited partnerships, and bank holding companies. Equity interests in various limited liability companies (“LLCs”) and limited partnerships are accounted for under the equity method, as the Company has determined that the equity method best reflects its economic interest in the underlying equity investment. Short-Term Investments Short-term investments are carried at amortized cost, which approximates fair value. Short-term investments have maturities greater than three months but less than one year at the date of purchase. Cash Equivalents The Company considers highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Restricted Cash Equivalents The Company considers highly liquid investments with maturities of three months or less at the date of purchase that are segregated for a specific use to be restricted cash equivalents. Certain restricted cash equivalents invested in funds with floating net asset values are measured at fair value with changes in fair value recognized in net income. Direct Written Premiums Direct written premiums are earned on a pro rata basis over the terms of the policies, generally 12 months. The portion of premiums written applicable to the unexpired terms of the policies in force is recorded as unearned premiums. Policies are accounted for on an individual basis, with no aggregation by counterparty. Assumed Reinsurance Premiums Assumed reinsurance written premiums include amounts reported by brokers and ceding companies, supplemented by the Company’s own estimates of premiums when reports have not been received. Premiums on the Company’s excess of loss and pro rata reinsurance contracts are estimated when the business is underwritten. For excess of loss contracts, the deposit premium, as defined in the contract, is generally recorded as an estimate of premiums written at the inception date of the treaty. Estimates of premiums written under pro rata contracts are recorded in the period in which the underlying risks are expected to begin and are based on information provided by the brokers and the ceding companies. Reinsurance premium estimates are reviewed by management periodically. Any adjustment to these estimates is recorded in the period in which it becomes known. Reinsurance premiums assumed are earned over the terms of the underlying policies or reinsurance contracts. Contracts and policies written on a “losses occurring” basis cover claims that may occur during the term of the contract or policy, which is typically 12 months. Accordingly, the premium is earned evenly over the term. Contracts which are written on a “risks attaching” basis cover claims which attach to the underlying insurance policies written during the terms of such contracts. Premiums earned on such contracts usually extend beyond the original term of the reinsurance contract, typically resulting in recognition of premiums earned over a 24-month period in proportion to the level of underlying exposure. Contracts are accounted for on an individual basis, with no aggregation by counterparty. Premiums Receivable and Agents’ Balances, Net Premiums receivable and agents’ balances are carried at face value net of any allowance for credit losses. The allowance for credit losses represents the current estimate of expected credit losses based on the Company’s assessment of the collectability of receivables that are past due, historical collection percentages, and consideration of current economic conditions and expectations of future conditions that could affect ultimate collections. Receivables greater than 90 days past due were $7.5 million and $6.9 million at December 31, 2021 and 2020, respectively. The allowance for credit losses was $16.7 million and $8.3 million at December 31, 2021 and 2020, respectively. Credit loss expense was $9.4 million for the year ended December 31, 2021 ($7.1 million of which will be deducted from amounts due to our reinsurers), $3.3 million for the year ended December 31, 2020, and $2.5 million for the year ended December 31, 2019. Receivables written off against the allowance for credit losses totaled $1.1 million for the year ended December 31, 2021, $660,000 for the year ended December 31, 2020, and $812,000 for the year ended December 31, 2019. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Deferred Policy Acquisition Costs Costs which are incrementally or directly related to the successful acquisition of new or renewal insurance business are deferred. These deferred costs are primarily commissions to agents, ceding commissions paid on reinsurance assumed, premium taxes, and the portion of underwriting fixed compensation and payroll related fringe benefits directly related to an insurance contract that has been acquired, net of ceding commissions related to reinsurance ceded. Amortization of such policy acquisition costs is charged to expense in proportion to premium earned over the estimated policy life. To the extent that unearned premiums on existing policies are not adequate to cover projected related costs and expenses, deferred policy acquisition costs are charged to earnings. The Company considers anticipated investment income in determining whether a premium deficiency exists. Reinsurance and Adjustable Features of Insurance and Reinsurance Contracts Certain premiums and losses are ceded to other insurance companies or assumed from other insurance companies under various excess of loss and quota-share reinsurance contracts. The Company enters into ceded reinsurance contracts to limit its exposure to large losses, to limit exposure on new lines of insurance written by the Company, and to provide additional capacity for growth. Premiums, commissions, and losses and loss adjustment expenses on reinsured business are accounted for on a basis consistent with that used in accounting for the original policies issued and the terms of the reinsurance contracts. Reinsurance recoverables and prepaid reinsurance premiums are reported as assets. The Company uses a provision matrix to calculate the allowance for credit losses on reinsurance recoverables by applying impairment rates based on historical loss data to similarly rated reinsurance companies based on the expected duration of the receivables. The Company also considers the expected impact of current and future expected economic conditions and adjusts estimates if needed based on an evaluation of these factors. The allowance for credit losses on reinsurance recoverables at December 31, 2021 and 2020 was $631,000 and $335,000, respectively. Other amounts payable to insurance companies and reinsurers or receivable from insurance companies and reinsurers are netted where the right of offset exists. The Company receives ceding commissions in connection with certain ceded reinsurance. The ceding commissions are recorded as a reduction of other operating expenses. Certain reinsurance contracts include provisions that adjust premiums or acquisition expenses based upon the loss experience under the contracts. Premiums written and earned, as well as related acquisition expenses are recorded based upon the projected loss experience under the contracts. The Company’s Specialty Admitted Insurance segment writes insurance under specialty admitted fronting and program arrangements. The fronting and program arrangements may contain contractual provisions that adjust acquisition expenses based upon loss experience under the contracts. The specialty admitted fronting and program arrangements are significantly reinsured. These reinsurance contracts may also contain provisions that adjust premiums or acquisition expenses based upon the loss experience under the contracts. Premiums written and earned, as well as related acquisition expenses, are recorded based upon the projected loss experience under the contracts. Other Income Other income is principally comprised of fee income earned on policies for which the Company has no exposure to underwriting risk. Fee income of $4.5 million, $3.4 million, and $9.5 million is included in other income for the years ended December 31, 2021, 2020, and 2019, respectively. Fees are earned on a pro rata basis over the service period of the underlying business. Policies are accounted for on an individual basis, with no aggregation by counterparty. Income Taxes Deferred tax assets and deferred tax liabilities are provided for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of assets and liabilities and their respective U.S. tax basis. Deferred tax assets and liabilities are measured using enacted U.S. corporate tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance only when management believes it is more likely than not that some, or all, of the deferred tax assets will not be realized. The Company determined that no valuation allowance was necessary at December 31, 2021 or 2020. Goodwill Goodwill is tested annually for impairment in the fourth quarter of each calendar year, or more frequently if events or changes in circumstances indicate that the carrying amount of the Company’s reporting units, including goodwill, may exceed their fair values. The Company first assesses qualitative factors in determining whether it is necessary to perform the quantitative goodwill impairment test. If management determines that it is more likely than not that the fair value of a reporting unit is less than the carrying value based on qualitative factors then they will perform the quantitative goodwill impairment test. For the quantitative goodwill impairment testing, the fair value of the reporting units is determined using a combination of a market approach and an income approach which projects the future cash flows produced by the reporting units and discounts those cash flows to their present value. The projection of future cash flows is necessarily dependent upon assumptions on the future levels of income as well as business trends, prospects, market, and economic conditions. The results of the two approaches are weighted to determine the fair value of each reporting unit. When the fair value is less than the carrying value of the net assets of the reporting unit, including goodwill, an impairment loss is charged to operations. To determine the amount of any goodwill impairment, the implied fair value of reporting unit goodwill is compared to the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination is determined. That is, the fair value of a reporting unit is assigned to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. Intangible Assets, Net Intangible assets are initially recognized and measured at fair value. Specifically identified intangible assets with indefinite lives include trademarks and state insurance licenses and authorities. Other specifically identified intangible assets with lives ranging from 7.0 to 27.5 years represent relationships with brokers. These intangible assets are amortized on a straight-line basis over their estimated useful lives. Intangible assets with indefinite useful lives are reviewed for impairment at least annually. In evaluating whether there has been impairment to the intangible asset, management determines the fair value of the intangible asset and compares the resulting fair value to the carrying value of the intangible asset. If the carrying value exceeds the fair value, the intangible asset is written down to fair value, and the impairment is reported through earnings. The Company evaluates intangible assets with definite lives for impairment when impairment indicators are noted. Impairment of Long-Lived Assets Long-lived assets with finite lives are tested for impairment whenever recognized events or changes in circumstances indicate the carrying value of these assets may not be recoverable. If indicators of impairment are present, fair value is calculated using estimated future cash flows expected to be generated from the use of those assets. An impairment loss is recognized only if the carrying amount of a long-lived asset or asset group is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset or asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. That assessment is based on the carrying amount of the asset or asset group at the date it is tested for recoverability. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset or asset group exceeds its fair value. Property and Equipment, Net Property and equipment, which is included in “other assets” in the accompanying consolidated balance sheets, is reported at cost less accumulated depreciation and is depreciated principally on a straight-line basis over the estimated useful lives of the depreciable assets, generally three Reserve for Losses and Loss Adjustment Expenses The reserve for losses and loss adjustment expenses represents the estimated ultimate cost of all reported and unreported losses and loss adjustment expenses incurred and unpaid at the balance sheet date. The Company does not discount this reserve. The process of estimating the reserve for losses and loss adjustment expenses requires a high degree of judgment and is subject to a number of variables. The reserve for losses and loss adjustment expenses is estimated using individual case-basis valuations and statistical analyses. Those estimates are subject to the effects of trends in loss severity and frequency. The Company utilizes various actuarially-accepted reserving methodologies in determining the continuum of expected outcomes for its reserves. These methodologies utilize various inputs, including management’s initial expected loss ratio (the ratio of losses and loss adjustment expenses incurred to net earned premiums), expected reporting patterns and payment patterns for losses and loss adjustment expenses (based on insurance industry data and the Company’s own experience), and the Company’s actual paid and reported losses and loss adjustment expenses. An internal actuary reviews these results and (after applying appropriate professional judgment and other actuarial techniques that are considered necessary) presents recommendations to the Company’s management. Management uses this information and its judgment to make decisions on the final recorded reserve for losses and loss adjustment expenses. Management believes that the use of judgment is necessary to arrive at a best estimate for the reserve for losses and loss adjustment expenses given the long-tailed nature of the business generally written by the Company and the limited operating experience of the Casualty Reinsurance segment, the fronting and program business in the Specialty Admitted Insurance segment, and the commercial auto business in the Excess and Surplus Lines segment. Catastrophes of significant magnitude, including hurricanes and earthquakes, involve complex coverage issues. In estimating the reserve for losses and loss adjustment expenses for these catastrophes, management uses case reserve estimates based on information obtained from site inspections by the Company’s adjustors and the terms of coverage provided in the policies. Management estimates reserves for incurred but not reported claims for these catastrophes using judgment based on an assessment of the Company’s property insurance exposures where the catastrophes occur and the Company’s progress in settling claims. Although management believes that the reserve for losses and loss adjustment expenses is reasonable, it is possible that the Company’s actual incurred losses and loss adjustment expenses will not develop in a manner consistent with the assumptions inherent in the determination of these reserves. Specifically, the Company’s actual ultimate loss ratio could differ from management’s initial expected loss ratio and/or the Company’s actual reporting patterns for losses could differ from the expected reporting patterns. Accordingly, the ultimate settlement of losses and the related loss adjustment expenses may vary significantly from the estimates included in the Company’s consolidated financial statements. These estimates are reviewed continually by management and are adjusted as necessary as experience develops or new information becomes known; such adjustments are included in current operations. Share Based Compensation The Company expenses the fair value of share equity awards over the vesting period of the award on a straight-line basis. The Black-Scholes-Merton option pricing model is used to value the options granted (see Note 12). Forfeitures of share-based awards are recognized as they occur. As the share based compensation expense is incurred, a corresponding increase to additional paid-in capital in shareholders’ equity is recognized. Share based compensation expense is reflected in “other operating expenses” in the accompanying consolidated statements of (loss) income and comprehensive (loss) income. Variable Interest Entities Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (“VIE”). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose, and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. The Company holds interests in VIEs through certain equity method investments included in “other invested assets” in the accompanying consolidated balance sheets. The Company has determined that it should not consolidate any of the VIEs as it is not the primary beneficiary in any of the relationships. Although the investments resulted in the Company holding variable interests in the entities, they did not empower the Company to direct the activities that most significantly impact the economic performance of the entities. The Company’s investments related to these VIEs totaled $26.9 million and $30.1 million as of December 31, 2021 and 2020, respectively, representing the Company’s maximum exposure to loss. (Loss) Earnings Per Share Basic (loss) earnings per share excludes dilution and is computed by dividing net (loss) income by the weighted-average number of common shares outstanding for the period. Diluted (loss) earnings per share reflects the dilution that could occur if securities or other contracts to issue common shares or common share equivalents were exercised or converted into common shares as calculated using the treasury stock method. When inclusion of common share equivalents increases the earnings per share or reduces the loss per share, the effect on earnings is anti-dilutive, and the diluted net earnings or net loss per share is computed excluding these common share equivalents. The following represents a reconciliation of the numerator and denominator of the basic and diluted (loss) earnings per share computations contained in the consolidated financial statements. Net (Loss) Income Weighted-Average (Loss) Earnings (in thousands, except per share data) Year ended December 31, 2021 Basic $ (172,799) 34,956,957 $ (4.94) Common share equivalents — — — Diluted $ (172,799) 34,956,957 $ (4.94) Year ended December 31, 2020 Basic $ 4,824 30,552,210 $ 0.16 Common share equivalents — 332,206 — Diluted $ 4,824 30,884,416 $ 0.16 Year ended December 31, 2019 Basic $ 38,339 30,275,184 $ 1.27 Common share equivalents — 398,740 (0.02) Diluted $ 38,339 30,673,924 $ 1.25 Common share equivalents relate to our outstanding equity awards (stock options and RSUs). For the year ended December 31, 2021, common share equivalents of 175,360 were excluded from the calculation of diluted loss per share as their effects were anti-dilutive. For the year ended December 31, 2020, all common share equivalents were dilutive. For the year ended December 31, 2019, 9,735 shares were excluded from the calculation of diluted earnings per share as their effects were anti-dilutive. Adopted Accounting Standards There were no new accounting standards adopted in 2021 that materially impacted the Company's financial statements . Prospective Accounting Standards There are no prospective accounting standards which are expected to have a material impact on our financial statements subsequent to December 31, 2021. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The Company’s available-for-sale fixed maturity securities are summarized as follows: Cost or Gross Gross Fair (in thousands) December 31, 2021 Fixed maturity securities: State and municipal $ 323,773 $ 12,156 $ (2,212) $ 333,717 Residential mortgage-backed 246,586 2,384 (2,339) 246,631 Corporate 711,930 26,119 (5,714) 732,335 Commercial mortgage and asset-backed 301,247 4,941 (1,700) 304,488 U.S. Treasury securities and obligations guaranteed by the U.S. government 60,329 653 (592) 60,390 Total fixed maturity securities, available-for-sale $ 1,643,865 $ 46,253 $ (12,557) $ 1,677,561 December 31, 2020 Fixed maturity securities: State and municipal $ 277,241 $ 19,203 $ (39) $ 296,405 Residential mortgage-backed 286,104 7,784 (40) 293,848 Corporate 715,145 52,098 (421) 766,822 Commercial mortgage and asset-backed 314,911 12,611 (803) 326,719 U.S. Treasury securities and obligations guaranteed by the U.S. government 97,489 2,360 (1) 99,848 Total fixed maturity securities, available-for-sale $ 1,690,890 $ 94,056 $ (1,304) $ 1,783,642 The amortized cost and fair value of available-for-sale investments in fixed maturity securities at December 31, 2021 are summarized, by contractual maturity, as follows: Cost or Fair (in thousands) One year or less $ 86,238 $ 86,948 After one year through five years 463,670 477,474 After five years through ten years 310,943 314,147 After ten years 235,181 247,873 Residential mortgage-backed 246,586 246,631 Commercial mortgage and asset-backed 301,247 304,488 Total $ 1,643,865 $ 1,677,561 Actual maturities may differ for some securities because borrowers have the right to call or prepay obligations with or without penalties. The following table shows the Company’s gross unrealized losses and fair value for available-for-sale securities aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross (in thousands) December 31, 2021 Fixed maturity securities: State and municipal $ 93,313 $ (2,162) $ 1,150 $ (50) $ 94,463 $ (2,212) Residential mortgage-backed 140,386 (2,337) 147 (2) 140,533 (2,339) Corporate 179,078 (4,232) 18,635 (1,482) 197,713 (5,714) Commercial mortgage and asset-backed 159,289 (1,695) 1,229 (5) 160,518 (1,700) U.S. Treasury securities and obligations guaranteed by the U.S. government 24,378 (592) — — 24,378 (592) Total fixed maturity securities, available-for-sale $ 596,444 $ (11,018) $ 21,161 $ (1,539) $ 617,605 $ (12,557) December 31, 2020 Fixed maturity securities: State and municipal $ 7,193 $ (39) $ — $ — $ 7,193 $ (39) Residential mortgage-backed 3,649 (40) — — 3,649 (40) Corporate 28,607 (421) — — 28,607 (421) Commercial mortgage and asset-backed 18,427 (447) 38,802 (356) 57,229 (803) U.S. Treasury securities and obligations guaranteed by the U.S. government 2,291 (1) — — 2,291 (1) Total fixed maturity securities, available-for-sale $ 60,167 $ (948) $ 38,802 $ (356) $ 98,969 $ (1,304) The Company held securities of 230 issuers that were in an unrealized loss position at December 31, 2021 with a total fair value of $617.6 million and gross unrealized losses of $12.6 million. None of the fixed maturity securities with unrealized losses has ever missed, or been delinquent on, a scheduled principal or interest payment. At December 31, 2021, 99.5% of the Company’s fixed maturity security portfolio was rated “BBB-” or better (“investment grade”) by Standard & Poor’s or received an equivalent rating from another nationally recognized rating agency. The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments on January 1, 2020. This update changed the impairment model for available-for-sale fixed maturities and requires the Company to determine whether unrealized losses on available-for-sale fixed maturities are due to credit-related factors. An allowance for credit losses is established for any credit-related impairments, limited to the amount by which fair value is below amortized cost. Changes in the allowance for credit losses are recognized in earnings and included in net realized and unrealized gains (losses) on investments. Unrealized losses that are not credit-related continue to be recognized in other comprehensive income. The Company considers the extent to which fair value is below amortized cost in determining whether a credit-related loss exists. The Company also considers the credit quality rating of the security, with a special emphasis on securities downgraded below investment grade. A comparison is made between the present value of expected future cash flows for a security and its amortized cost. If the present value of future expected cash flows is less than amortized cost, a credit loss is presumed to exist and an allowance for credit losses is established. Management may conclude that a qualitative analysis is sufficient to support its conclusion that the present value of expected cash flows equals or exceeds a security's amortized cost. As a result of this review, management concluded that there were no credit-related impairments of fixed maturities at December 31, 2021 or 2020. Management does not intend to sell the securities in an unrealized loss position, and it is not "more likely than not" that the Company will be required to sell these securities before a recovery in their value to their amortized cost basis occurs. Management concluded that none of the fixed maturity securities with an unrealized loss at December 31, 2019 experienced an other-than-temporary impairment. In connection with the adoption of ASU 2016-13, the Company elected the fair value option in accounting for bank loan participations effective January 1, 2020. The targeted transition relief offered by ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief was applied to elect the fair value option to account for bank loan participations already held at the January 1, 2020 date of adoption. Under the fair value option, bank loan participations are measured at fair value, and changes in unrealized gains and losses in bank loan participations are reported in our income statement as net realized and unrealized gains (losses) on investments. At adoption on January 1, 2020, the Company applied the amendments on a modified retrospective basis, reducing the carrying value of its bank loan portfolio to fair value through an $8.4 million adjustment with a $7.8 million (net of tax) cumulative effect adjustment to reduce retained earnings. Applying the fair value option to the bank loan portfolio increases volatility in the Company's financial statements, but management believes it is less subjective and less burdensome to implement and maintain than ASU 2016-13, which would have otherwise been required. At December 31, 2021, the Company's bank loan portfolio had an aggregate unpaid principal balance of $159.0 million and an aggregate fair value of $156.0 million. Investment income on bank loan participations included in net investment income was $10.6 million and $12.2 million during the years ended December 31, 2021 and 2020, respectively. Net realized and unrealized gains (losses) on investments includes gains of $6.7 million and $1.3 million related to changes in unrealized gains and losses on bank loan participations for the years ended December 31, 2021 and 2020, respectively. Management concluded that none of the unrealized losses were due to credit-related impairments for the year ended December 31, 2021. For the year ended December 31, 2020, management concluded that $8.3 million of unrealized losses were due to credit-related impairments. Losses due to credit-related impairments were determined based upon consultations and advice from the Company's specialized investment manager and consideration of any adverse situations that could affect the borrower's ability to repay, the estimated value of underlying collateral, and other relevant factors. Prior to the election of the fair value option on January 1, 2020, bank loan participations were classified as held-for-investment and carried at amortized cost net of any allowance for credit losses. Under the prior accounting method, management concluded that seven loans from six issuers in the Company's bank loan portfolio were impaired at December 31, 2019 . At December 31, 2019 , the impaired loans had a carrying value of $6.9 million, unpaid principal of $14.3 million, and an allowance for credit losses of $7.2 million , $5.1 million of which related to two loans from one issuer that was experiencing liquidity concerns resulting from revenue declines and poor growth prospects in its most profitable segment. Bank loan participations generally have a credit rating that is below investment grade (i.e. below “BBB-” for Standard & Poor’s) at the date of purchase. These bank loans are primarily senior, secured floating-rate debt rated “BB”, “B”, or “CCC” by Standard & Poor’s or an equivalent rating from another nationally recognized rating agency. These bank loans include assignments of, and participations in, performing and non-performing senior corporate debt generally acquired through primary bank syndications and in secondary markets. Bank loans consist of, but are not limited to, term loans, the funded and unfunded portions of revolving credit loans, and other similar loans and investments. Management believed that it was probable at the time that these loans were acquired that the Company would be able to collect all contractually required payments receivable. Interest income on bank loan participations is accrued on the unpaid principal balance, and discounts and premiums on bank loan participations are amortized to income using the interest method. Generally, the accrual of interest on a bank loan participation is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest. A bank loan participation may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Generally, bank loan participations are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Interest received on nonaccrual loans generally is reported as investment income. There were no bank loans on nonaccrual status at December 31, 2021 or 2020. The average recorded investment in impaired bank loans was $3.5 million during the year ended December 31, 2019 and investment income of $293,000 was recognized during the time that the loans were impaired. The Company recorded losses of $8.9 million during the year ended December 31, 2019 for changes in the fair value of impaired bank loans. At December 31, 2019 , unamortized discounts on bank loan participations were $2.4 million, and unamortized premiums were $4,000. Major categories of the Company’s net investment income are summarized as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Fixed maturity securities $ 42,968 $ 45,070 $ 39,875 Bank loan participations 10,571 12,150 19,772 Equity securities 4,883 4,800 5,262 Other invested assets 2,200 9,181 6,254 Cash, cash equivalents, restricted cash equivalents, and short-term investments 260 6,619 9,210 Gross investment income 60,882 77,820 80,373 Investment expense (4,017) (4,452) (4,721) Net investment income $ 56,865 $ 73,368 $ 75,652 The Company’s net realized and unrealized gains and losses on investments are summarized as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Fixed maturity securities: Gross realized gains $ 4,988 $ 1,098 $ 1,575 Gross realized losses (64) (53) (494) 4,924 1,045 1,081 Equity securities: Gross realized gains 284 — 11 Gross realized losses (827) (1,441) (232) Changes in fair values of equity securities 5,350 (215) 6,257 4,807 (1,656) 6,036 Bank loan participations: Gross realized gains 555 554 846 Gross realized losses (1,388) (17,286) (10,902) Changes in fair values of bank loan participations 6,661 1,318 — 5,828 (15,414) (10,056) Short-term investments and other: Gross realized gains 75 77 21 Gross realized losses (150) (2) (1) Changes in fair values of short-term investments and other 80 (80) — 5 (5) 20 Total $ 15,564 $ (16,030) $ (2,919) The change in the Company’s available-for-sale fixed maturity gross unrealized net gains was $(59.1) million, $57.7 million, and $50.3 million for the years ended December 31, 2021, 2020, and 2019, respectively. The Company invests selectively in private debt and equity opportunities. These investments, which together comprise the Company’s other invested assets, are primarily focused in renewable energy, limited partnerships, and bank holding companies. Carrying Value Investment Income December 31, Year Ended December 31, 2021 2020 2021 2020 2019 (in thousands) Renewable energy LLCs (a) Excess and Surplus Lines $ 24,211 $ — $ (625) $ — $ — Corporate & Other 2,709 30,145 (812) 2,016 2,181 26,920 30,145 (1,437) 2,016 2,181 Renewable energy notes receivable ( b) Excess and Surplus Lines 2,329 — 417 — — Corporate & Other 2,911 — 522 5,630 1,313 5,240 — 939 5,630 1,313 Limited partnerships (c) Excess and Surplus Lines 13,098 4,096 1,417 272 2,090 Corporate & Other 2,150 7,807 938 920 327 15,248 11,903 2,355 1,192 2,417 Bank holding companies (d) Excess and Surplus Lines 4,500 — 200 — — Corporate & Other — 4,500 143 343 343 4,500 4,500 343 343 343 Total other invested assets Excess and Surplus Lines 44,138 4,096 1,409 272 2,090 Corporate & Other 7,770 42,452 791 8,909 4,164 $ 51,908 $ 46,548 $ 2,200 $ 9,181 $ 6,254 (a) The Company’s Excess and Surplus Lines and Corporate and Other segments own equity interests ranging from 2.6% to 32.6% in various LLCs whose principal objective is capital appreciation and income generation from owning and operating renewable energy production facilities (wind and solar). The LLCs are managed by an entity for which two of our former directors serve as officers, and the Company’s Non-Executive Chairman has invested in certain of these LLCs. The equity method is used to account for the Company’s LLC investments. Income for the LLCs primarily reflects adjustments to the carrying values of investments in renewable energy projects to their determined fair values. The fair value adjustments are included in revenues for the LLCs. Expenses for the LLCs are not significant and are comprised of administrative and interest expenses. During the year ended December 31, 2021, the Company transferred $26.3 million of its investments in the LLCs from the Corporate and Other segment to the Excess and Surplus Lines segment. The Company received cash distributions from these investments totaling $1.8 million and $3.1 million for the years ended December 31, 2021 and 2020, respectively. (b) The Company's Excess and Surplus Lines and Corporate and Other segments have invested in notes receivable for renewable energy projects. At December 31, 2021, the Company held two notes issued by an entity for which two of our former directors serve as officers . Interest on the notes, which mature in 2025, is fixed at 12%. During the year ended December 31, 2021, the Company received principal repayments of $1.7 million and $2.1 million on the notes receivable in the Company's Excess and Surplus Lines segment and Corporate and Other segment, respectively. During the year ended December 31, 2020 , the Company received the total principal balance of $8.8 million plus a $5.3 million gain at maturity on an earlier note receivable for renewable energy projects. Interest on that note was fixed at 15%. (c) The Company owns investments in limited partnerships that invest in concentrated portfolios including publicly-traded small cap equities, loans of middle market private equity sponsored companies, private equity general partnership interests, commercial mortgage-backed securities, and tranches of distressed home loans. Income from the partnerships is recognized under the equity method of accounting. During the year ended December 31, 2021, the Company transferred $5.1 million of its investments in the limited partnerships from the Corporate and Other segment to the Excess and Surplus Lines segment. At December 31, 2021, the Company’s Excess and Surplus Lines segment has outstanding commitments to invest another $5.3 million in these limited partnerships. (d) The Company's Excess and Surplus Lines segment holds $4.5 million of subordinated notes issued by a bank holding company for which the Company’s Non-Executive Chairman was previously the Lead Independent Director and an investor and for which one of the Company’s directors is also an investor (the "Bank Holding Company"). During the year ended December 31, 2021, the Company transferred ownership of the subordinated notes from the Corporate and Other segment to the Excess and Surplus Lines segment. Interest on the notes, which mature in 2023, is fixed at 7.6% per annum. At December 31, 2020, the Company held an investment in a collateralized loan obligation (CLO) where one of the underlying loans was issued by the Bank Holding Company. The investment, with a carrying value of $520,000 at December 31, 2020, was classified as an available-for-sale fixed maturity. During the year ended December 31, 2021, the Company received the final principal repayment for the investment. The Company maintains fixed maturity securities, short-term investments, accrued investment income, and cash and cash equivalents amounting to $478.4 million at December 31, 2021 in trust accounts or on deposit as collateral for outstanding letters of credit issued as security to third-party reinsureds on reinsurance assumed by JRG Re. At December 31, 2021 and 2020, cash and investments with a fair value of $54.9 million and $46.9 million, respectively, were on deposit with state insurance departments to satisfy regulatory requirements. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs An analysis of deferred policy acquisition costs is as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Balance at beginning of period $ 62,953 $ 62,006 $ 54,450 Policy acquisition costs deferred: Commissions 51,466 51,306 67,303 Underwriting and other issue expenses 23,770 25,219 24,146 75,236 76,525 91,449 Amortization of policy acquisition costs (69,663) (75,578) (83,893) Net change 5,573 947 7,556 Balance at end of period $ 68,526 $ 62,953 $ 62,006 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets On December 11, 2007, the Company completed an acquisition of James River Group by acquiring 100% of the outstanding shares of James River Group common stock, referred to herein as the “Merger”. The transaction was accounted for under the purchase method of accounting, and goodwill and intangible assets were recognized by the Company as a result of the transaction. All of the Company’s goodwill is an asset of the Excess and Surplus Lines segment. The Company’s annual testing performed in the fourth quarter of 2021, 2020 and 2019 indicated that no impairment of goodwill had occurred. The carrying amount of goodwill at December 31, 2021 and 2020 was $181.8 million. Accumulated goodwill impairment losses were $99.6 million at December 31, 2021 and 2020. The most recent goodwill impairment losses occurred in 2010. Specifically identifiable intangible assets were acquired in the Merger. During the fourth quarters of 2021, 2020 and 2019, the indefinite-lived intangible assets for trademarks and insurance licenses and authorities were tested for impairment. Intangible assets for broker relationships that have specific lives and are subject to amortization were also reviewed for impairment. There were no impairments recognized in 2021, 2020, or 2019. The gross carrying amounts and accumulated amortization for each major specifically identifiable intangible asset class were as follows: December 31, 2021 2020 Weighted- Gross Accumulated Gross Accumulated (in thousands) Trademarks Indefinite $ 22,200 $ — $ 22,200 $ — Insurance licenses and authorities Indefinite 8,964 — 8,964 — Identifiable intangibles not subject to amortization 31,164 — 31,164 — Broker relationships 24.6 11,611 6,736 11,611 6,373 Identifiable intangible assets subject to amortization 11,611 6,736 11,611 6,373 $ 42,775 $ 6,736 $ 42,775 $ 6,373 Future estimated amortization of specifically identifiable intangible assets as of December 31, 2021 is as follows ( in thousands) : 2022 $ 363 2023 363 2024 363 2025 363 2026 363 Thereafter 3,059 Total $ 4,874 The table below summarizes the changes in the net carrying values of intangible assets by segment for 2021: December 31, 2020 December 31, 2021 Net Carrying Amortization Impairment Net Carrying (in thousands) Excess and Surplus Lines Trademarks $ 19,700 $ — $ — $ 19,700 Insurance licenses and authorities 4,900 — — 4,900 Broker relationships 5,237 (363) — 4,874 29,837 (363) — 29,474 Specialty Admitted Insurance Trademarks 2,500 — — 2,500 Insurance licenses and authorities 4,065 — — 4,065 Broker relationships — — — — 6,565 — — 6,565 Total identifiable intangible assets $ 36,402 $ (363) $ — $ 36,039 The table below summarizes the changes in the net carrying values of intangible assets by segment for 2020: December 31, 2019 December 31, 2020 Net Carrying Amortization Impairment Net Carrying (in thousands) Excess and Surplus Lines Trademarks $ 19,700 $ — $ — $ 19,700 Insurance licenses and authorities 4,900 — — 4,900 Broker relationships 5,603 (366) — 5,237 30,203 (366) — 29,837 Specialty Admitted Insurance Trademarks 2,500 — — 2,500 Insurance licenses and authorities 4,065 — — 4,065 Broker relationships 172 (172) — — 6,737 (172) — 6,565 Total identifiable intangible assets $ 36,940 $ (538) $ — $ 36,402 Amortization of intangible assets was $362,000 for the Excess and Surplus Lines segment and $235,000 for the Specialty Admitted Insurance segment for the year ended December 31, 2019. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net of accumulated depreciation, is included in "other assets" on the consolidated balance sheets and consists of the following: December 31, 2021 2020 (in thousands) Electronic data processing hardware and software $ 2,492 $ 3,238 Furniture and equipment 2,221 2,025 Property and equipment, cost basis 4,713 5,263 Accumulated depreciation (3,932) (3,975) Property and equipment, net $ 781 $ 1,288 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company has entered into operating leases for office space in Bermuda, North Carolina, Virginia, Arizona, and Georgia. Following the adoption of ASU 2016-02, Leases (Topic 842) , effective January 1, 2019, the present value of future lease payments for the Company’s leases with terms greater than 12 months are included on the consolidated balance sheets as lease liabilities and right-of-use lease assets. For leases with terms of 12 months or less, lease payments are recognized in other operating expenses on a straight-line basis over the lease term. Total expected lease payments are based on the lease payments specified in the contract and the stated term, including any options to extend or terminate that the Company is reasonably certain to exercise. The Company has elected the practical expedient to account for lease components and any associated non-lease components as a single lease component, and therefore allocates all of the expected lease payments to the lease component. The lease liability, which represents the Company’s obligation to make lease payments arising from the lease, is calculated based on the present value of expected lease payments over the remaining lease term, discounted using the Company’s collateralized incremental borrowing rate at the commencement date. The lease liability is then adjusted for any prepaid rent, lease incentives received or capitalized initial direct costs to determine the lease asset, which represents the Company's right to use the underlying asset for the lease term. Lease liabilities and right-of-use assets are included in other liabilities other assets Upon adoption of the new standard on January 1, 2019, the Company derecognized assets of $22.6 million and liabilities of $30.9 million associated with a lease that was designated as build-to-suit under the previous guidance, and recorded a cumulative-effect adjustment to increase retained earnings by $8.3 million. The Company also recorded right-of-use assets of $17.2 million and lease liabilities of $17.8 million at adoption of the new standard associated with the Company's operating leases. At December 31, 2021, lease liabilities and right-of-use assets associated with the Company's operating leases were $12.8 million and $11.7 million, respectively ($14.9 million and $14.0 million at December 31, 2020, respectively). The weighted-average discount rate and weighted average remaining lease term for operating leases was 4.1% and 3.6 years, respectively, as of December 31, 2021. The table below summarizes maturities of the Company’s operating lease liabilities as of December 31, 2021, which reconciles to total lease liabilities included in other liabilities on the Company’s consolidated balance sheets: Years ending December 31, (in thousands) 2022 $ 4,146 2023 3,935 2024 2,625 2025 2,556 2026 407 Thereafter 90 Total lease payments 13,759 Less imputed interest (967) Total operating lease liabilities $ 12,792 Operating lease liabilities include $8.5 million associated with office space in a building that is owned by a partnership in which the Company has a minority interest. Operating lease costs were $5.1 million, $5.0 million, and $5.2 million for the years ended December 31, 2021 , 2020, and 2019, respectively. Operating lease costs are primarily comprised of rental expense for operating leases. Rental expense is recognized on a straight line basis over the lease term and includes amortization of the right-of-use lease asset and imputed interest on the lease liability. Operating lease costs are included in other operating expenses in the Company's consolidated statements of (loss) income and comprehensive (loss) income. |
Reserve for Losses and Loss Adj
Reserve for Losses and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Reserve for Losses and Loss Adjustment Expenses | Reserve for Losses and Loss Adjustment Expenses In establishing the reserve for losses and loss adjustment expenses, the Company’s internal actuaries estimate an initial expected ultimate loss ratio for each of our lines of business by accident year (or for our Casualty Reinsurance segment, on a contract by contract basis). Input from the Company’s underwriting and claims departments, including premium pricing assumptions and historical experience, are considered by the Company’s internal actuaries in estimating the initial expected loss ratios. The Company’s internal actuaries generally utilize five actuarial methods in their estimation process for the reserve for losses and loss adjustment expenses. These five methods utilize, to varying degrees, the initial expected loss ratio, detailed statistical analysis of past claims reporting and payment patterns, claims frequency and severity, paid loss experience, industry loss experience, and changes in market conditions, policy forms, exclusions, and exposures. In applying these methods to develop an estimate of the reserve for losses and loss adjustment expenses, our internal actuaries use judgment to determine three key parameters for each accident year and line of business: the initial expected loss ratios, the incurred and paid loss development factors and the weighting of the five actuarial methods to be used for each accident year and line of business. For the Excess and Surplus Lines and Specialty Admitted Insurance segments, the internal actuaries perform a study on each of these parameters annually and make recommendations for the initial expected loss ratios, the incurred and paid loss development factors and the weighting of the five actuarial methods by accident year and line of business. Members of management’s Reserve Committee review and approve the parameter review actuarial recommendations, and absent any developments requiring an earlier review, these approved parameters are used in the reserve estimation process for the next four quarters at which time a new parameter study is performed. For the Casualty Reinsurance segment, periodic assessments are made on a contract by contract basis. Method weights are generally less rigid for the Casualty Reinsurance segment given the heterogeneous nature of the various contracts, and the potential for significant changes in mix of business within individual treaties. Different reserving methods are appropriate in different situations, and the Company’s internal actuaries use their judgment and experience to determine the weighting of the methods to use for each accident year and each line of business and, for our Casualty Reinsurance segment, on a contract by contract basis. For example, the current accident year has very little incurred and paid loss development data on which to base reserve projections. As a result, the Company relies heavily on the initial expected loss ratio in estimating reserves for the current accident year. The Company generally sets the initial expected loss ratio for the current accident year consistent with the internal actuaries’ pricing assumptions adjusted upward where warranted based on management's judgment in order to produce the best estimate. We believe that this is a reasonable and appropriate reserving assumption for the current accident year since our pricing assumptions are actuarially driven and since the Company expects to make an acceptable return on the new business written. If actual loss emergence is better than our initial expected loss ratio assumptions, we will experience favorable development and if it is worse than our initial expected loss ratio assumptions, we will experience adverse development. Conversely, sufficient incurred and paid loss development data is available for the oldest accident years, so more weight is given to this development data and less weight is given to the initial expected loss ratio. The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses, net of reinsurance, to the gross amounts reported in the consolidated balance sheets. Reinsurance recoverables on unpaid losses and loss adjustment expenses are presented gross of an allowance for credit losses on reinsurance balances of $631,000 and $335,000 at December 31, 2021 and 2020, respectively. Year Ended December 31, 2021 2020 2019 (in thousands) Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period $ 1,386,061 $ 1,377,461 $ 1,194,088 Add: Incurred losses and loss adjustment expenses net of reinsurance: Current year 466,574 386,341 603,094 Prior years 325,778 92,204 69,008 Total incurred losses and loss and adjustment expenses 792,352 478,545 672,102 Deduct: Loss and loss adjustment expense payments net of reinsurance: Current year 35,006 31,952 75,249 Prior years 487,741 437,993 413,480 Total loss and loss adjustment expense payments 522,747 469,945 488,729 Deduct: Loss reserves ceded in LPT Transaction 256,452 — — Reserve for losses and loss adjustment expenses net of reinsurance recoverables at end of period 1,399,214 1,386,061 1,377,461 Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period 1,349,259 806,019 668,045 Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period $ 2,748,473 $ 2,192,080 $ 2,045,506 The foregoing reconciliation shows that $325.8 million of adverse development was experienced in 2021 on the reserve for losses and loss adjustment expenses held at December 31, 2020. This adverse reserve development included $190.7 million of adverse development in the Excess and Surplus Lines segment, including $200.1 million of adverse development in the commercial auto line of business that was primarily related to the 2019 and prior accident years with Rasier LLC and its affiliates (collectively, “Rasier”) . The adverse development for commercial auto was partially offset by $9.4 million of favorable development in other Excess and Surplus Lines underwriting divisions. Favorable reserve development in the Specialty Admitted Insurance segment was $2.5 million as losses on our workers’ compensation business written prior to 2020 continued to develop more favorably than we had anticipated. The Casualty Reinsurance segment experienced $137.6 million of adverse development on prior underwriting years. Actual reported and paid losses in the Casualty Reinsurance segment significantly exceeded expectations in 2021, particularly in the fourth quarter of 2021, causing us to refine some of the assumptions used to determine our best estimate of ultimate losses for this segment. Specifically, we responded to this highly elevated loss emergence by making significant adjustments to our assumed tail factors, other development factors, initial expected loss ratios, and weights given to various actuarial methods. In particular, we gave significantly more weight to incurred loss development methods and Bornhuetter – Ferguson incurred loss development methods than had been done previously. These actuarial refinements resulted in material deterioration in ultimate loss selections for underwriting years 2014 through 2018. The adverse development was concentrated in four treaties, three of which were general liability and one which was professional liability. Of the $137.6 million of adverse development recognized in 2021, $113.4 million was concentrated in these four treaties. The foregoing reconciliation shows that $92.2 million of adverse development was experienced in 2020 on the reserve for losses and loss adjustment expenses held at December 31, 2019. This adverse reserve development included $59.4 million of adverse development in the Excess and Surplus Lines segment including $91.4 million of adverse development in the commercial auto line of business that was primarily related to the 2018 and prior accident years with Rasier. The adverse development for commercial auto was partially offset by $32.0 million of favorable development in other Excess and Surplus Lines underwriting divisions that was primarily related to the 2018 and 2019 accident years. The Company also experienced $5.0 million of favorable development on prior accident years in the Specialty Admitted Insurance segment, as losses on our workers’ compensation business written prior to 2019 continued to develop more favorably than we had anticipated. The Casualty Reinsurance segment experienced $37.8 million of adverse development on prior accident years primarily in accident years 2014 through 2018. This adverse development was mainly in the general liability and commercial auto lines of business. The foregoing reconciliation shows that $69.0 million of adverse development was experienced in 2019 on the reserve for losses and loss adjustment expenses held at December 31, 2018. This adverse reserve development included $51.2 million of adverse development in the Excess and Surplus Lines segment including $57.4 million of adverse development in the commercial auto line of business that was primarily related to the 2016 and 2017 accident years with Rasier. The adverse development for commercial auto was partially offset by $6.2 million of favorable development in other Excess and Surplus Lines underwriting divisions. The Company also experienced $5.3 million of favorable development on prior accident years in the Specialty Admitted Insurance segment, as losses on our workers’ compensation business written prior to 2018 continued to develop more favorably than we had anticipated. The Casualty Reinsurance segment experienced $23.1 million of adverse development on prior accident years primarily in accident years 2011 through 2016. This adverse development was mainly in the general liability and commercial auto lines of business. The following tables present incurred and paid losses and loss adjustment expenses, net of reinsurance as of December 31, 2021 for: (1) the Excess and Surplus Lines segment split between all excess and surplus lines business excluding commercial auto, and separately, commercial auto, (2) the Specialty Admitted Insurance segment split between individual risk workers’ compensation and fronting and programs, and (3) the Casualty Reinsurance segment. The information provided herein about incurred and paid accident year claims development for the years ended December 31, 2020 and prior is presented as “unaudited” supplementary information. Excess and Surplus Lines — Excluding Commercial Auto Incurred losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 $ 97,908 $ 98,672 $ 97,829 $ 96,497 $ 97,306 $ 99,619 $ 101,271 $ 103,061 $ 106,118 $ 108,336 2013 96,729 96,064 85,433 81,009 82,830 83,855 82,732 82,517 83,594 2014 114,942 104,092 90,267 82,232 84,074 88,904 90,191 90,944 2015 126,443 113,417 104,847 102,434 103,688 110,466 114,398 2016 138,507 125,093 126,050 126,971 125,097 132,235 2017 144,349 131,897 132,136 124,265 128,674 2018 167,004 158,458 146,633 150,687 2019 214,653 194,759 189,671 2020 239,897 211,732 2021 304,435 Total $ 1,514,706 Cumulative paid losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 $ 6,944 $ 33,757 $ 49,604 $ 63,216 $ 74,869 $ 82,545 $ 88,812 $ 94,588 $ 99,628 $ 101,669 2013 3,867 14,509 30,382 44,421 59,641 66,553 71,035 74,635 76,295 2014 3,412 16,969 28,212 43,891 58,774 71,549 76,523 79,980 2015 4,048 17,164 34,801 55,911 73,455 87,344 94,494 2016 5,180 22,852 46,045 70,105 90,166 102,072 2017 5,290 22,956 42,764 64,924 81,303 2018 6,000 26,160 50,679 76,494 2019 8,235 31,346 62,227 2020 8,642 34,561 2021 11,693 Total $ 720,788 All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance (44 claims outstanding) $ 6,714 Total outstanding losses and loss adjustment expenses, net of reinsurance $ 800,632 Excess and Surplus Lines — Commercial Auto Incurred losses and adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 $ 1,255 $ 1,300 $ 1,451 $ 1,351 $ 1,301 $ 1,277 $ 1,277 $ 1,277 $ 1,277 2014 20,487 14,071 17,233 18,953 19,779 18,303 19,196 20,013 2015 30,109 33,113 35,149 36,139 36,636 37,839 38,046 2016 74,340 109,286 126,791 147,122 157,712 164,399 2017 207,355 208,743 272,421 319,472 355,713 2018 255,881 230,220 283,408 349,067 2019 262,306 240,773 339,771 2020 19,133 10,899 2021 21,154 Total $ 1,300,339 Cumulative paid losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 $ 60 $ 1,182 $ 1,285 $ 1,291 $ 1,275 $ 1,275 $ 1,275 $ 1,275 $ 1,275 2014 6,166 8,645 12,679 16,359 18,678 17,745 18,301 19,163 2015 8,356 15,234 24,282 31,592 34,819 35,983 36,710 2016 18,295 54,054 89,381 125,108 141,545 152,030 2017 41,467 107,377 192,961 252,169 309,860 2018 45,136 119,099 184,686 257,346 2019 44,225 107,182 192,982 2020 628 2,854 2021 2,810 Total $ 975,030 Total outstanding losses and loss adjustment expenses, net of reinsurance before Rasier LPT $ 325,309 Reinsurance recoverable for Rasier LPT $ 256,452 Total outstanding losses and loss adjustment expenses, net of reinsurance $ 68,857 Specialty Admitted — Individual Risk Workers’ Compensation Incurred losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 $ 32,116 $ 32,420 $ 31,490 $ 29,689 $ 28,255 $ 28,174 $ 28,186 $ 28,186 $ 27,741 $ 27,386 2013 12,525 13,668 12,786 11,578 10,907 10,909 10,909 10,598 10,573 2014 16,638 16,652 14,620 13,890 12,704 12,704 12,573 12,685 2015 20,938 21,274 19,741 18,376 17,626 16,492 16,468 2016 21,678 20,299 18,050 15,800 14,050 13,069 2017 24,869 22,071 19,779 18,810 16,606 2018 16,432 16,288 16,038 14,200 2019 20,253 21,056 20,631 2020 20,137 22,240 2021 14,519 Total $ 168,377 Cumulative paid losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 $ 9,222 $ 20,308 $ 24,755 $ 26,435 $ 26,897 $ 26,932 $ 26,963 $ 26,994 $ 27,128 $ 27,140 2013 4,487 8,723 9,846 10,246 10,263 10,309 10,337 10,335 10,336 2014 4,633 10,648 12,041 12,236 12,282 12,282 12,276 12,287 2015 6,604 13,285 15,118 15,889 15,901 16,068 16,069 2016 4,664 10,227 12,135 12,432 12,481 12,483 2017 6,546 12,782 14,285 15,195 15,210 2018 4,497 9,034 11,412 11,746 2019 5,473 13,776 16,254 2020 7,394 14,668 2021 5,874 Total $ 142,067 All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance (6 claims outstanding) $ 927 Outstanding losses and loss adjustment expenses assumed from involuntary workers’ compensation pools $ 3,941 Total outstanding losses and loss adjustment expenses, net of reinsurance $ 31,178 Specialty Admitted — Fronting and Programs Incurred losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 $ 104 $ 80 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 2014 3,460 3,468 3,818 3,425 3,228 3,083 3,081 3,068 2015 7,136 9,632 9,358 8,974 8,384 8,444 8,436 2016 11,542 15,670 14,682 15,522 14,468 15,090 2017 21,229 24,271 25,201 24,728 25,097 2018 21,758 20,677 19,822 20,158 2019 18,832 19,020 19,991 2020 25,433 28,131 2021 39,999 Total $ 160,022 Cumulative paid losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 $ 28 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 2014 883 1,687 2,369 2,728 2,854 2,916 2,917 2,926 2015 2,058 4,666 6,165 6,919 7,329 7,654 7,728 2016 1,894 5,123 6,888 10,732 10,896 11,711 2017 1,223 6,682 13,065 15,854 18,219 2018 885 4,972 10,495 12,631 2019 4,358 5,125 9,958 2020 5,375 15,678 2021 8,347 Total $ 87,250 All outstanding losses and loss adjustment expenses, net of reinsurance $ 72,772 Outstanding losses and loss adjustment expenses, assumed from involuntary pools $ 781 Total outstanding losses and loss adjustment expenses, net of reinsurance $ 73,553 Casualty Reinsurance Incurred losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 $ 148,251 $ 132,388 $ 131,281 $ 135,594 $ 136,813 $ 139,978 $ 143,305 $ 146,045 $ 147,413 $ 148,103 2013 133,230 130,361 131,352 134,446 137,801 143,124 146,760 149,682 153,622 2014 118,881 115,927 114,636 116,981 121,200 126,160 130,822 139,208 2015 119,157 108,870 108,699 109,117 114,517 120,185 133,790 2016 112,759 105,533 103,544 108,222 114,979 132,058 2017 134,628 128,472 129,800 138,831 176,828 2018 121,529 119,098 125,715 163,957 2019 86,022 85,549 100,895 2020 80,374 81,800 2021 82,610 Total $ 1,312,871 Cumulative paid losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 $ 73,124 $ 81,859 $ 97,215 $ 113,943 $ 121,026 $ 128,567 $ 133,606 $ 137,430 $ 139,719 $ 141,563 2013 59,756 75,094 93,902 108,396 119,256 127,732 134,644 139,250 142,824 2014 41,421 58,601 76,302 89,899 101,366 110,374 117,971 125,444 2015 40,021 53,986 68,002 80,208 90,661 100,548 110,692 2016 36,268 50,905 65,409 78,145 90,356 104,115 2017 47,739 72,891 90,117 106,942 126,747 2018 30,903 50,274 69,123 90,054 2019 12,646 25,453 37,488 2020 5,589 15,270 2021 2,082 Total $ 896,279 All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance $ 8,402 Total outstanding losses and loss adjustment expenses, net of reinsurance $ 424,994 The reconciliation of the net incurred and paid claims development tables to the reserve for losses and loss adjustment expenses in the consolidated balance sheet at December 31, 2021 is as follows (in thousands): E&S – excluding commercial auto $ 800,632 E&S – commercial auto 68,857 Specialty Admitted – individual risk workers’ compensation 31,178 Specialty Admitted – fronting and programs 73,553 Casualty Reinsurance 424,994 Net reserve for losses and loss adjustment expenses 1,399,214 Reinsurance recoverables on unpaid losses (gross of $631,000 allowance for credit losses on reinsurance recoverables) 1,349,259 Gross reserve for losses and loss adjustment expenses $ 2,748,473 The following is unaudited supplementary information about average annual percentage payouts of incurred claims by age, net of reinsurance, as of December 31, 2021. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 E&S – excluding commercial auto 8.7 % 15.1 % 17.1 % 18.2 % 14.7 % 8.4 % 5.3 % 4.1 % 2.3 % 1.8 % E&S – commercial auto 17.7 % 35.0 % 17.9 % 13.9 % 8.4 % 3.2 % 1.1 % 0.6 % 2.1 % Specialty Admitted – individual risk workers’ compensation 27.8 % 31.3 % 15.2 % 8.7 % 6.5 % 3.4 % 2.2 % 1.1 % 1.2 % 0.9 % Specialty Admitted – fronting and programs 17.8 % 22.3 % 21.2 % 14.1 % 9.3 % 6.0 % 4.7 % 2.3 % 2.3 % Casualty Reinsurance 13.2 % 9.7 % 7.7 % 7.0 % 7.5 % 7.4 % 7.4 % 7.0 % 6.8 % 6.1 % In determining the cumulative number of reported claims, the Company measures claim counts by individual claimant for individual risk workers’ compensation policies in the Specialty Admitted Insurance segment. In the Excess and Surplus Lines insurance segment and for fronting and programs in the Specialty Admitted Insurance segment, the Company measures claim counts by claim event. The claim counts include all claims reported, even if the Company does not establish a liability for the claim (i.e. reserve for loss and loss adjustment expenses). The Casualty Reinsurance segment typically assumes written premium under quota share arrangements. The Company typically does not have direct access to claim frequency information underlying its assumed quota share arrangements given the nature of that business. In addition, multiple claims are often aggregated by the ceding company before being reported to the Company. We do not use claim frequency information in the Casualty Reinsurance segment in the determination of loss reserves or for other internal purposes. Based on these considerations, the Company does not believe providing claims frequency information is practicable as it relates to the Casualty Reinsurance segment. The table below provides information on IBNR liabilities and claims frequency for: (1) the Excess and Surplus Lines segment split between commercial auto and all non commercial auto, and (2) the Specialty Admitted Insurance segment split between individual risk workers’ compensation and fronting and programs: Excess and Surplus Lines — Excluding Commercial Auto Accident Year Incurred Losses IBNR Cumulative # of ($ in thousands) 2012 $ 108,336 $ 1,449 1,868 2013 83,594 2,624 2,510 2014 90,944 4,040 2,225 2015 114,398 5,543 2,636 2016 132,235 10,541 3,102 2017 128,674 14,307 3,197 2018 150,687 31,961 4,465 2019 189,671 77,244 5,417 2020 211,732 128,364 4,442 2021 304,435 252,419 2,964 Excess and Surplus Lines — Commercial Auto Accident Year Incurred Losses IBNR Cumulative # of ($ in thousands) 2013 $ 1,277 $ 2 54 2014 20,013 266 7,764 2015 38,046 741 41,770 2016 164,399 4,895 89,117 2017 355,713 9,690 134,150 2018 349,067 22,594 97,334 2019 339,771 54,011 71,428 2020 10,899 3,442 594 2021 21,154 14,481 699 Specialty Admitted - Individual Risk Workers’ Compensation Accident Year Incurred Losses IBNR Cumulative # of ($ in thousands) 2012 $ 27,386 $ 247 1,323 2013 10,573 237 540 2014 12,685 319 851 2015 16,468 391 975 2016 13,069 585 836 2017 16,606 1,283 1,093 2018 14,200 2,253 1,238 2019 20,631 3,057 1,552 2020 22,240 3,890 1,367 2021 14,519 2,845 1,238 Specialty Admitted — Fronting and Programs Accident Year Incurred Losses IBNR Cumulative # of ($ in thousands) 2013 $ 52 $ — 22 2014 3,068 134 858 2015 8,436 502 1,361 2016 15,090 2,241 2,816 2017 25,097 4,630 6,788 2018 20,158 4,000 7,360 2019 19,991 5,316 8,084 2020 28,131 5,843 8,680 2021 39,999 22,373 8,253 The table below provides information on IBNR liabilities for the Casualty Reinsurance segment: Accident Year Incurred Losses IBNR ($ in thousands) 2012 $ 148,103 $ 906 2013 153,622 2,566 2014 139,208 5,712 2015 133,790 9,817 2016 132,058 14,766 2017 176,828 33,463 2018 163,957 42,942 2019 100,895 49,980 2020 81,800 94,855 2021 82,610 24,450 The Company has not provided insurance coverage that could reasonably be expected to produce material levels of asbestos claims activity. In addition, management does not believe that the Company is exposed to environmental liability claims other than those which it has specifically underwritten and priced as an environmental exposure. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The Company remains liable to policyholders if its reinsurers are unable to meet their contractual obligations under applicable reinsurance agreements. To minimize exposure to significant losses from reinsurance insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk. The Company’s reinsurance contracts generally require reinsurers that are not authorized as reinsurers under U.S. state insurance regulations or that experience rating downgrades from rating agencies below specified levels to fund their share of the Company’s ceded outstanding losses and loss adjustment expense reserves, typically through the use of irrevocable and unconditional letters of credit. In fronting arrangements, which the Company conducts through its Specialty Admitted Insurance segment, the Company is subject to credit risk with regard to insurance companies who act as reinsurers for the Company in such arrangements. The Company customarily requires a collateral trust arrangement to secure the obligations of the insurance entity for whom it is fronting. At December 31, 2021, the Company had reinsurance recoverables on unpaid losses of $1,348.6 million and reinsurance recoverables on paid losses of $82.2 million. All material reinsurance recoverables are from companies with A.M. Best Company ratings of “A-” (Excellent) or better, or are collateralized by the reinsurer for our benefit through letters of credit or trust agreements, or represent recoverables from a state residual market for automobile insurance. At December 31, 2021, reinsurance recoverables on unpaid losses from the Company’s three largest reinsurers were $325.0 million, $256.5 million, and $125.4 million, representing 52.4% of the total balance. At December 31, 2021, prepaid reinsurance premiums ceded to three reinsurers totaled $80.7 million, $43.2 million, and $19.8 million, representing 49.3% of the total balance. Premiums written, premiums earned, and losses and loss adjustment expenses incurred are summarized as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Written premiums: Direct $ 1,322,034 $ 1,103,994 $ 1,305,948 Assumed 185,265 153,006 164,787 Ceded (762,919) (609,226) (574,585) Net $ 744,380 $ 647,774 $ 896,150 Earned premiums: Direct $ 1,255,875 $ 1,005,138 $ 1,182,501 Assumed 154,243 145,867 150,330 Ceded (714,524) (544,199) (509,085) Net $ 695,594 $ 606,806 $ 823,746 Losses and loss adjustment expenses: Direct $ 1,117,673 $ 709,545 $ 953,548 Assumed 232,240 125,096 113,843 Ceded (557,561) (356,096) (395,289) Net $ 792,352 $ 478,545 $ 672,102 |
Senior Debt
Senior Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Senior Debt | Senior Debt The Company has a $315.0 million senior revolving credit facility (as amended or amended and restated, the "2013 Facility”). The 2013 Facility is comprised of the following at December 31, 2021: • A $102.5 million secured revolving facility utilized by JRG Re to issue letters of credit for the benefit of third-party reinsureds. This portion of our credit facility is secured by our investment securities. At December 31, 2021, the Company had $34.3 million of letters of credit issued under the secured facility. • A $212.5 million unsecured revolving facility to meet the working capital needs of the Company. All unpaid principal on the revolver is due at maturity. Interest accrues quarterly and is payable in arrears at LIBOR plus a margin (1.625% at December 31, 2021), which is subject to change according to terms in the credit agreement. At December 31, 2021 and 2020, the Company had a drawn balance of $185.8 million outstanding on the unsecured revolver. In 2020, we borrowed an additional $52.5 million to support our growth and for general corporate purposes. James River Group Holdings, Ltd. and JRG Re are borrowers on the 2013 Facility. The 2013 Facility has been amended from time to time since its inception in 2013. On November 8, 2019, the Company entered into a Second Amended and Restated Credit Agreement for the 2013 Facility which, among other things, extended the maturity date of the 2013 Facility until November 8, 2024, increased the amount available under the unsecured revolving credit facility to $212.5 million, lowered the applicable interest rate and letter of credit fees, and modified certain negative covenants to be less restrictive. A subsidiary of the Bank Holding Company is one of the lenders for the 2013 Facility, with a $36.0 million commitment allocation on the total $315.0 million 2013 Facility. The 2013 Facility contains certain financial and other covenants (including minimum net worth, maximum ratio of total adjusted debt outstanding to total capitalization, and financial strength ratings) with which the Company was in compliance, at December 31, 2021. On August 2, 2017, the Company and its wholly-owned subsidiary, JRG Re, together as borrowers, entered into a credit agreement (the "2017 Facility") that provides the Company with a revolving line of credit of up to $100.0 million, which may be used for loans and letters of credit made or issued, at the borrowers' option, on a secured or unsecured basis. The loans and letters of credit made or issued under the revolving line of credit may be used to finance the Borrowers’ general corporate purposes. On November 8, 2019, the Company entered into a First Amendment to Credit Agreement which, among other things, lowered the applicable interest rate and modified certain negative covenants to be less restrictive. Obligations under the 2017 Facility carry a variable rate of interest subject to terms in the credit agreement (LIBOR plus a margin of 1.625% at December 31, 2021) and will mature 30 days after notice of termination from the lender. Interest accrues quarterly and is payable in arrears at variable rates which are subject to change according to terms in the credit agreement. At December 31, 2021, unsecured loans of $61.5 million and secured letters of credit totaling $20.5 million were outstanding under the facility. During 2020, we borrowed an additional $51.5 million in unsecured loans to support our growth and for general corporate purposes. In order to secure borrowings and letters of credit made or issued under the secured portion of the revolving line of credit, JRG Re entered into a pledge and security agreement on August 2, 2017 with the lender, pursuant to which JRG Re will pledge certain investment securities. In the event the Company elects to pledge investment securities as collateral for the secured portion of the revolving credit facility, the Company will enter into a similar pledge and security agreement. The lender under the credit agreement and its affiliate is a joint bookrunner and joint lead arranger under the Company’s Second Amended and Restated Credit Agreement dated as of November 8, 2019, as amended, and its affiliate was also an underwriter in the December 2014 initial public offering of the Company’s common shares. The 2017 Facility contains certain financial and other covenants which we are in compliance with at December 31, 2021. On May 26, 2004, James River Group issued $15.0 million of unsecured, floating rate senior debentures (the “Senior Debt”), due April 29, 2034 unless accelerated earlier, through an indenture. The Senior Debt is not redeemable by the holder and is not subject to sinking fund requirements. Interest accrues quarterly and is payable in arrears at a per annum rate of the three-month LIBOR on the Determination Date (as defined in the indenture) plus 3.85%. The Senior Debt is redeemable prior to its stated maturity in whole or in part, at the option of James River Group. The terms of the indenture generally provide that so long as the Senior Debt is outstanding, neither James River Group nor any of its subsidiaries may: • assume or permit to exist any indebtedness that is secured by any encumbrance on the capital stock of James River Group or any of its subsidiaries which is senior to the Senior Debt; or • issue, sell, transfer or otherwise dispose of any shares of, securities convertible into, or warrants, rights or options to subscribe for or purchase shares of, capital stock of any subsidiary. The terms of the Senior Debt contain certain covenants, with which we are in compliance at December 31, 2021, and which, among other things, restrict our ability to assume senior indebtedness secured by our U.S. holding company's common stock or its subsidiaries' capital stock or to issue shares of its subsidiaries' capital stock. |
Junior Subordinated Debt
Junior Subordinated Debt | 12 Months Ended |
Dec. 31, 2021 | |
Subordinated Borrowings [Abstract] | |
Junior Subordinated Debt | Junior Subordinated Debt The Company issued trust preferred securities (“Trust Preferred Securities”) through James River Capital Trust I, James River Capital Trust II, James River Capital Trust III, James River Capital Trust IV, and Franklin Holdings II (Bermuda) Capital Trust I, (each, a “Trust”; collectively, the “Trusts”). These Delaware statutory trusts are sponsored and wholly-owned by the Company. Each Trust was created solely for the purpose of issuing the Trust Preferred Securities. Each Trust used proceeds from the sale of its Trust Preferred Securities to purchase the Company’s floating rate junior subordinated debentures (the “Junior Subordinated Debt”) issued to the Trust under an indenture (each, an “Indenture”; collectively, the “Indentures”). The Junior Subordinated Debt is the sole asset of each Trust, and the Trust Preferred Securities are the sole liabilities of each Trust. The Company purchased all of the outstanding common stock of the Trusts, and the investment in the Trusts is included in “other assets” in the accompanying consolidated balance sheets. The following table summarizes the nature and terms of the junior subordinated debt and trust preferred securities outstanding at December 31, 2021 (including the Company’s repurchases of a portion of these trust preferred securities): James River James River James River James River Franklin ($ in thousands) Issue date May 26, December 15, June 15, December 11, January 10, Principal amount of Trust Preferred Securities $7,000 $15,000 $20,000 $54,000 $30,000 Principal amount of Junior Subordinated Debt $7,217 $15,464 $20,619 $55,670 $30,928 Carrying amount of Junior Subordinated Debt net of repurchases $7,217 $15,464 $20,619 $44,827 $15,928 Maturity date of Junior Subordinated Debt, unless accelerated earlier May 24, December 15, June 15, December 15, March 15, Trust common stock $217 $464 $619 $1,670 $928 Interest rate, per annum Three-Month LIBOR plus 4.0% Three-Month LIBOR plus 3.4% Three-Month LIBOR plus 3.0% Three-Month LIBOR plus 3.1% Three-Month LIBOR plus 4.0% All of the Junior Subordinated Debt is currently redeemable at 100.0% of the unpaid principal amount at the Company’s option. Interest on the Trust Preferred Securities and interest paid to the Trusts on the Junior Subordinated Debt is payable quarterly in arrears at a per annum rate as described in the table above. The Company has the right to defer interest payments on the Junior Subordinated Debt for up to five years without triggering an event of default. The Trust Preferred Securities are subject to mandatory redemption in a like amount (a) upon repayment of all of the Junior Subordinated Debt on the stated maturity date, (b) contemporaneously with the optional prepayment of all of the Junior Subordinated Debt in conjunction with a special event (as defined), and (c) five years or more after the issue date, contemporaneously with the optional prepayment, in whole or in part, of the Junior Subordinated Debt. The Indentures contain certain covenants which the Company is in compliance with as of December 31, 2021. Interest payable is included in “accrued expenses” on the accompanying consolidated balance sheets. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock | Capital Stock The Company’s authorized share capital consists of 200,000,000 common shares, par value $0.0002 per share (37,373,066 shares issued and outstanding at December 31, 2021) and 20,000,000 undesignated preferred shares, par value $0.00125 per share (no shares issued or outstanding at December 31, 2021). On May 10, 2021, the Company closed the offering and public sale (the “Offering”) of an aggregate of 6,497,500 of the Company’s common shares at a public offering price of $31.00 per share. The Company received net proceeds (before expenses) from the Offering of $192.1 million, which were used for general corporate purposes. The common shares were offered and sold pursuant to an underwriting agreement entered into by the Company, Barclays Capital, Inc., and Keefe, Bruyette & Woods, Inc., as representatives of the several underwriters named therein. The Company also issued 226,305 common shares in 2021 related to outstanding equity incentive plan awards. Of the new shares issued, 93,446 were related to employee stock option exercises and 132,859 were related to vesting of restricted share units (“RSUs”). As a result of the Offering and the issuances related to equity incentive plan awards, the total common shares outstanding increased from 30,649,261 at December 31, 2020 to 37,373,066 at December 31, 2021. In 2020, the Company issued 224,870 shares related to outstanding equity incentive plan awards, increasing the number of common shares outstanding from 30,424,391 at December 31, 2019 to 30,649,261 at December 31, 2020. Of the new shares issued, 113,346 were related to employee stock option exercises and 111,524 were related to vesting of restricted share units (“RSUs”). The Company has 4,321,150 common shares reserved for future issuance upon exercise or vesting of equity awards, as applicable. The Board of Directors declared the following cash dividends in 2021, 2020, and 2019: Date of Dividend per Payable to Shareholders Payment Date Total Amount (thousands) 2021 February 24, 2021 $0.30 March 15, 2021 March 31, 2021 $ 9,345 April 27, 2021 $0.30 June 14, 2021 June 30, 2021 $ 11,291 July 27, 2021 $0.30 September 13, 2021 September 30, 2021 $ 11,282 October 26, 2021 $0.30 December 13, 2021 December 31, 2021 $ 11,292 Total $1.20 $ 43,210 2020 February 19, 2020 $0.30 March 16, 2020 March 31, 2020 $ 9,269 April 28, 2020 $0.30 June 15, 2020 June 30, 2020 $ 9,271 July 28, 2020 $0.30 September 14, 2020 September 30, 2020 $ 9,292 October 27, 2020 $0.30 December 14, 2020 December 31, 2020 $ 9,305 Total $1.20 $ 37,137 2019 February 20, 2019 $0.30 March 11, 2019 March 29, 2019 $ 9,146 April 30, 2019 $0.30 June 10, 2019 June 28, 2019 $ 9,205 July 30, 2019 $0.30 September 16, 2019 September 30, 2019 $ 9,231 November 5, 2019 $0.30 December 16, 2019 December 31, 2019 $ 9,229 Total $1.20 $ 36,811 Included in the dividends are $404,000, $449,000 and $433,000 of dividend equivalents on RSUs, of which $518,000, $663,000 and $623,000 were payable as of December 31, 2021, 2020, and 2019, respectively. |
Equity Awards
Equity Awards | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Awards | Equity Awards Equity Incentive Plans The Company’s shareholders have approved various equity incentive plans, including the Amended and Restated 2009 Equity Incentive Plan (the “Legacy Plan”), the 2014 Long Term Incentive Plan (“2014 LTIP”), and the 2014 Non-Employee Director Incentive Plan (“2014 Director Plan”) (collectively, the “Plans”). All awards issued under the Plans are issued at the discretion of the Board of Directors. Under the Legacy Plan, employees received non-qualified stock options. There are no options outstanding under the Legacy Plan as of December 31, 2021 and no additional awards may be granted. Employees are eligible to receive non-qualified stock options, incentive stock options, share appreciation rights, performance shares, restricted shares, RSUs, and other awards under the 2014 LTIP. The maximum number of shares available for issuance under the 2014 LTIP is 4,171,150, and at December 31, 2021, 1,326,456 shares are available for grant. Non-employee directors of the Company are eligible to receive non-qualified stock options, share appreciation rights, performance shares, restricted shares, RSUs, and other awards under the 2014 Director Plan. At the 2019 Annual General Meeting of Shareholders of the Company held on April 30, 2019, the Company's shareholders approved an amendment to the 2014 Director Plan. The Board of Directors of the Company had previously approved the amendment. The amendment increased the number of the Company's common shares authorized for issuance under the 2014 Director Plan by 100,000 shares. The maximum number of shares available for issuance under the 2014 Director Plan is 150,000, and at December 31, 2021, 94,781 shares are available for grant. Generally, awards issued under the 2014 LTIP and 2014 Director Plan vest immediately in the event that an award recipient is terminated without Cause (as defined), and in the case of the 2014 LTIP for Good Reason (as defined), at any time following a Change in Control (as defined in the applicable plans). Options The following table summarizes the option activity: Year Ended December 31, 2021 2020 2019 Shares Weighted- Shares Weighted- Shares Weighted- Outstanding: Beginning of year 463,324 $ 32.25 643,851 $ 30.41 1,115,324 $ 29.02 Granted — $ — — $ — — $ — Exercised (126,798) $ 22.26 (180,527) $ 25.70 (459,415) $ 26.87 Forfeited (48,552) $ 40.42 — $ — (12,058) $ 36.84 End of year 287,974 $ 35.26 463,324 $ 32.25 643,851 $ 30.41 Exercisable, end of year 287,974 $ 35.26 463,324 $ 32.25 590,340 $ 29.34 All of the outstanding options vested over three years and have a contractual life of seven years from the original date of grant. All of the outstanding options have an exercise price equal to the fair value of the underlying shares at the date of grant. The intrinsic value of each option is determined based on the difference between the fair value of the underlying share and the exercise price of the underlying option. The total intrinsic value of options exercised during 2021, 2020 and 2019 was $1.3 million, $3.8 million and $8.2 million, respectively. The aggregate intrinsic value of options outstanding at December 31, 2021, 2020 and 2019 was $0, $7.8 million and $7.1 million, respectively. The aggregate intrinsic value of options exercisable at December 31, 2021, 2020 and 2019 was $0, $7.8 million and $7.1 million, respectively. The fair value used for calculating intrinsic values was $28.81, $49.15 and $41.21 at December 31, 2021, 2020 and 2019, respectively. The weighted-average remaining contractual life of the options outstanding and exercisable at December 31, 2021 is 1.4 years. There were no options granted in 2021, 2020, or 2019. The value of the options granted was estimated at the date of grant using the Black-Scholes-Merton option pricing model. RSUs The following table summarizes RSU activity: Year Ended December 31, 2021 2020 2019 Shares Weighted- Shares Weighted- Shares Weighted- Unvested, beginning of year 399,856 $ 43.59 340,368 $ 41.50 300,142 $ 39.22 Granted 161,971 $ 47.82 272,608 $ 45.11 197,078 $ 42.56 Vested (194,157) $ 42.74 (165,344) $ 41.49 (134,407) $ 37.99 Forfeited (75,535) $ 45.98 (47,776) $ 44.57 (22,445) $ 41.32 Unvested, end of year 292,135 $ 45.89 399,856 $ 43.59 340,368 $ 41.50 The vesting period of RSUs granted to employees have ranged from one Compensation Expense Share based compensation expense is recognized on a straight line basis over the vesting period. The amount of expense and related tax benefit is summarized below: Year Ended December 31, 2021 2020 2019 (in thousands) Share based compensation expense $ 6,658 $ 7,625 $ 7,178 U.S. tax benefit on share based compensation expense $ 1,206 $ 1,001 $ 872 As of December 31, 2021, the Company had $8.7 million of unrecognized share based compensation expense expected to be charged to earnings over a weighted-average period of 1.8 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Under current Bermuda law, James River Group Holdings, Ltd. and its Bermuda based subsidiaries, JRG Re and Carolina Re, are not required to pay any Bermuda taxes on their income or capital gains. Those companies have received an undertaking from the Minister of Finance in Bermuda that, in the event of any taxes being imposed, the Company will be exempt from taxation in Bermuda until March 2035. Distributions from the Company’s U.S. subsidiaries to its U.K. intermediate holding company, James River UK, are generally subject to a 5% dividend withholding tax. No distributions occurred in 2021, 2020 or 2019. The Company’s U.S. subsidiaries are subject to federal, state and local corporate income taxes, and other taxes applicable to U.S. corporations. In addition, Carolina Re is subject to Federal income taxes as a result of its irrevocable election to be taxed as a U.S. domestic corporation under Section 953(d) of the Code. The Company’s U.S.-domiciled subsidiaries and Carolina Re file a consolidated U.S. federal income tax return. The Company’s U.S.-based subsidiaries are generally no longer subject to income tax examination by U.S. income tax authorities for the tax years ending before January 1, 2017. During 2018, the IRS published factors that allowed the Company to adjust its current and deferred tax liabilities based on the provisions of the Tax Act. The Tax Act has specific transition provisions associated with reserve discounting. The initial impact of the proposed regulations in 2018 was an increase to our deferred tax asset for the additional discount as of December 31, 2017 of $8.8 million offset by an increase to our deferred tax liability of $8.8 million representing the 8 year transition provision required by the Tax Act. During 2018, $1.1 million of this transition provision was recognized in our current provision and adjusted out of our deferred tax liability. The regulations were finalized in 2019, and the remaining reserve adjustment at December 31, 2019 based on these final regulations is $5.7 million to be recognized over the next six years at $950,000 per year. The expected income tax provision computed from pre-tax income at the weighted-average tax rate has been calculated as the sum of the pre-tax income in each jurisdiction multiplied by that jurisdiction’s applicable Federal statutory tax rate. Federal statutory tax rates of 0% and 21% have been used in 2021, 2020 and 2019 for Bermuda and the U.S., respectively. The U.S. (loss) income before Federal income taxes was $(89.3) million, $25.1 million, and $70.7 million for the years ending December 31, 2021, 2020, and 2019, respectively. The Tax Act base-erosion and anti-abuse tax (“BEAT”) provisions impose a minimum tax on applicable taxpayers that make certain payments to related foreign persons. BEAT subjects the modified taxable income of an applicable taxpayer to a specified tax rate (10% in 2021). Modified taxable income is generally calculated by adding back certain payments to related foreign persons to regular taxable income. For the Company, reinsurance premiums paid by the Company’s U.S. insurance subsidiaries to JRG Re, a Bermuda entity that is not a U.S. taxpayer, are added back to regular taxable income in applying the BEAT provisions. A reconciliation of the difference between the Company’s Federal income tax provision on U.S. income and the expected Federal tax provision on U.S. income using the weighted-average tax rate as well as a reconciliation to total tax expense is as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Federal income tax (benefit) expense at applicable statutory rates $ (18,750) $ 5,272 $ 14,843 Tax-exempt investment income (278) (260) (230) Dividends received deduction (298) (283) (307) Excess tax benefits on share based compensation (208) (679) (1,099) Provision to return and amended tax returns (3,945) — — Base Erosion and Anti-Abuse Tax — 2,843 — Other 233 17 99 Federal income tax (benefit) expense $ (23,246) $ 6,910 $ 13,306 U.S. state income tax expense 11 203 222 Total income tax (benefit) expense $ (23,235) $ 7,113 $ 13,528 The significant components of net deferred tax assets (liabilities) at the corporate income tax rate of 21% for the years ended December 31, 2021 and 2020 are summarized as follows: December 31, 2021 2020 (in thousands) Deferred tax assets: Accrued compensation expenses $ 2,604 $ 2,308 Reserve for losses and loss adjustment expenses 18,016 14,265 Unearned premiums 10,675 9,753 Share based compensation 1,541 1,427 Allowance for credit losses 2,516 2,130 Property and equipment 144 213 Net operating loss carryforward 15,221 — Other 7,053 4,810 Total deferred tax assets 57,770 34,906 Deferred tax liabilities: Intangible assets 7,289 7,324 Net unrealized gains 6,626 12,201 Deferred policy acquisition costs 4,494 4,786 Equity method investments 10,257 8,839 Other 2,674 2,861 Total deferred tax liabilities 31,340 36,011 Net deferred tax assets (liabilities) $ 26,430 $ (1,105) Deferred income taxes have not been accrued with respect to certain undistributed earnings of foreign subsidiaries. If the earnings were to be distributed, as dividends or otherwise, such amounts may be subject to withholding taxation in the jurisdiction of the paying entity. The Company asserts that U.S. unremitted earnings as of December 31, 2021 will be permanently reinvested in the U.S. and, accordingly, no provision for withholding taxes arising in respect to U.S. unremitted earnings has been made. The company is considered a mixed company for net operating loss carryforward rules. A 20-year carryforward without an annual income limitation is applicable for insurance companies. The carryforward period for non-insurance companies is unlimited but limited to 80% of the current year taxable income. The Company had no reserve for future tax contingencies or liabilities (“unrecognized tax benefits”) at December 31, 2021 or 2020. The U.S. imposes a 1% excise tax on reinsurance premiums paid to non-U.S. reinsurers with respect to risks located in the U.S. The rates of tax are established based on the nature of the risk, unless reduced by an applicable U.S. tax treaty. For the years ended December 31, 2021, 2020, and 2019, the Company paid $338,000, $468,000, and $586,000, respectively, of federal excise taxes on its intercompany reinsurance transactions. The Company also paid excise taxes of $1.5 million, $1.2 million, and $1.5 million for the years ended December 31, 2021, 2020, and 2019, respectively, on written premiums assumed from third-party insurers with respect to risks located in the U.S. These excise taxes are reflected as “other operating expenses” in the Company’s consolidated income statements. |
Other Operating Expenses and Ot
Other Operating Expenses and Other Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Other Operating Expenses And Other Expenses [Abstract] | |
Other Operating Expenses and Other Expenses | Other Operating Expenses and Other Expenses Other operating expenses consist of the following: Year Ended December 31, 2021 2020 2019 (in thousands) Amortization of policy acquisition costs $ 69,663 $ 75,578 $ 83,893 Other underwriting expenses of the insurance segments 67,420 60,502 59,351 Other operating expenses of the Corporate and Other segment 27,609 29,418 27,664 Total $ 164,692 $ 165,498 $ 170,908 Other expenses of $2.6 million for the year ended December 31, 2021 primarily consist of legal and other professional fees related to the Company’s May 2021 common share offering, certain legal and professional consulting fees related to various strategic initiatives, and employee severance costs. Other expenses of $2.1 million and $1.1 million for the years ended December 31, 2020 and 2019, respectively, primarily consist of employee severance costs. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee BenefitsThe Company and its subsidiaries offer savings plans (the “Savings Plans”) which qualify under Section 401(k) of the U.S. Internal Revenue Code. Participants may contribute certain percentages of their pre-tax salary to the Savings Plans subject to statutory limitations. The Company and its subsidiaries match employee contributions at various rates up to a maximum contribution of 6.0% of the participant’s earnings subject to certain statutory limits. For the years ended December 31, 2021, 2020, and 2019, the expense associated with the Savings Plans totaled $3.4 million, $3.5 million, and $3.2 million, respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities The Company is involved in various legal proceedings, including commercial matters and litigation regarding insurance claims arising in the ordinary course of business as well as an alleged class action lawsuit. In addition, the Company is involved from time to time in legal actions which seek extra-contractual damages, punitive damages or penalties, including claims alleging bad faith in the handling of insurance claims. The Company believes that the outcome of such matters, individually and in the aggregate, is not reasonably likely to have a material adverse effect on its consolidated financial position, results of operations or cash flows. On July 9, 2021 a purported class action lawsuit was filed in the U.S. District Court, Eastern District of Virginia (the "Court") by Employees' Retirement Fund of the City of Fort Worth against James River Group Holdings, Ltd. and certain of its present and former officers (together, "Defendants"). On September 22, 2021, the Court entered an order appointing Employees' Retirement Fund of the City of Fort Worth and the City of Miami General Employees' and Sanitation Employees' Retirement Trust as co-lead plaintiffs (together, "Plaintiffs"). Plaintiffs' consolidated amended complaint was filed on November 19, 2021 (the "Amended Complaint"), which asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of a putative class of persons and entities that purchased the Company's stock between February 22, 2019 and October 25, 2021. The Amended Complaint alleges that Defendants failed to make appropriate disclosures concerning the adequacy of reserves for policies that covered Rasier LLC, a subsidiary of Uber Technologies, Inc., and seeks unspecified damages, costs, attorneys’ fees and such other relief as the court may deem proper. The Defendants filed a motion to dismiss on January 18, 2022. Plaintiffs' response to the motion to dismiss is due to be filed on March 4, 2022. For a description of the potential future impacts of COVID-19 on the Company, see the “The global coronavirus outbreak could harm business and results of operations of the Company” risk factor in Part I—Item IA in this Annual Report. The Company’s reinsurance subsidiary, JRG Re, entered into three letter of credit facilities with banks as security to third-party reinsureds on reinsurance assumed by JRG Re. JRG Re has established custodial accounts to secure these letters of credit. Under a $30.0 million facility, $5.9 million of letters of credit were issued through December 31, 2021 which were secured by deposits of $9.6 million. Under the 2013 Facility, $34.3 million of letters of credit were issued through December 31, 2021 which were secured by deposits of $53.2 million. Under the 2017 Facility, $20.5 million of letters of credit were issued through December 31, 2021 which were secured by deposits of $33.1 million. JRG Re has also established trust accounts to secure its obligations to selected reinsureds. The total amount deposited in the trust accounts for the benefit of third-party reinsureds was $382.4 million at December 31, 2021. Amounts Recoverable from an Indemnifying Party and Reinsurer on Legacy Commercial Auto Book James River previously issued a set of commercial auto insurance contracts to Rasier (the “Rasier Commercial Auto Policies”) under which James River pays losses and loss adjustment expenses on the contracts. James River has indemnity agreements with Rasier (non-insurance entities) (collectively, the “Indemnity Agreements”) and is contractually entitled to reimbursement for the portion of the losses and loss adjustment expenses paid on behalf of Rasier under the Rasier Commercial Auto Policies and other expenses incurred by James River. On September 27, 2021, James River entered into a loss portfolio transfer reinsurance agreement (the “LPT Agreement”) with Aleka to reinsure substantially all of the Rasier Commercial Auto Policies for which James River is not otherwise indemnified by Rasier under the Indemnity Agreements. Under the terms of the LPT Agreement, effective as of July 1, 2021, James River ceded to Aleka approximately $345.1 million of commercial auto liabilities relating to Rasier Commercial Auto Policies written in the years 2013-2019, which amount constituted the reinsurance premium. Each of Rasier and Aleka are required to post collateral under the Indemnity Agreements and the LPT Agreement, respectively: • Pursuant to the Indemnity Agreements, Rasier is required to post collateral for the amounts that are recoverable or may be recoverable under the indemnity agreements, including, among other things, case loss and loss adjustment expense reserves, IBNR loss and loss adjustment expense reserves, extra contractual obligations and excess policy limits liabilities. The collateral is provided through a collateral trust arrangement (the “Indemnity Trust”) in favor of James River by Aleka. In connection with the execution of the LPT Agreement, James River returned $691.3 million to the Indemnity Trust, representing the remaining balance of the amount withdrawn in October 2019, as was permitted under the indemnification agreements with Rasier and the associated trust agreement. At December 31, 2021, the balance in the Indemnity Trust was $584.6 million, and, together with the balance of the Loss Fund Trust (as defined below) attributable to the Indemnity Agreements as described below, the total balance of collateral securing Rasier’s obligations under the Indemnity Agreements was $653.7 million. • Pursuant to the LPT Agreement, Aleka is required to post collateral equal to 102% of James River's estimate of Aleka's obligations under the LPT Agreement, calculated in accordance with statutory accounting principles. The collateral is provided through a collateral trust arrangement (the “LPT Trust”) established in favor of James River by Aleka. At December 31, 2021, the balance in the LPT Trust was $251.7 million, and, together with the balance of the Loss Fund Trust (as defined below) attributable to the LPT Agreement as described below, the total balance of collateral securing Aleka’s obligations under the LPT Agreement was $279.9 million. At December 31, 2021, the total reinsurance recoverables under the LPT Agreement was $272.3 million (including $256.5 million of unpaid recoverables and $15.9 million of paid recoverables). In connection with the execution of the LPT Agreement, James River and Aleka entered into an administrative services agreement (the “Administrative Services Agreement”) with a third party claims administrator (the “Administrator”) pursuant to which the Administrator handles the claims on the Rasier Commercial Auto Policies for the remaining life of those claims. The claims paid by the Administrator are reimbursable by James River, and pursuant to the Administrative Services Agreement, James River established a loss fund trust account for the benefit of the Administrator (the “Loss Fund Trust”) to collateralize its claims payment reimbursement obligations. James River funds the Loss Fund Trust using funds withdrawn from the Indemnity Trust, funds withdrawn from the LPT Trust, and its own funds, in each case in an amount equal to the pro rata portion of the required Loss Fund Trust balance attributable to the Indemnity Agreements, the LPT Agreement and James River’s existing third party reinsurance agreements, respectively. At December 31, 2021, the balance in the Loss Fund Trust was $102.0 million, including $69.2 million representing collateral supporting Rasier’s obligations under the Indemnity Agreements and $28.2 million representing collateral supporting Aleka’s obligations under the LPT Agreement. Funds posted to the Loss Fund Trust are classified as restricted cash equivalents on the Company's balance sheet. While the LPT Agreement brings economic finality to substantially all of the Rasier Commercial Auto Policies, the Company has credit exposure to Rasier and Aleka under the Indemnity Agreements and the LPT Agreement if the estimated losses and expenses of the Rasier Commercial Auto Policies grow at a faster pace than the growth in our collateral balances. In addition, we have credit exposure if our estimates of future losses and loss adjustment expenses and other amounts recoverable under the Indemnity Agreements and the LPT Agreement, which are the basis for establishing the collateral balances, are lower than actual amounts paid or payable. The amount of our credit exposure in any of these instances could be material. To mitigate these risks, we closely and frequently monitor our exposure compared to our collateral held, and we request additional collateral when our analysis indicates that we have uncollateralized exposure. |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive (Loss) Income | Other Comprehensive (Loss) Income The following table summarizes the components of other comprehensive (loss) income: Year Ended December 31, 2021 2020 2019 (in thousands) Unrealized (losses) gains arising during the period, before U.S. income taxes $ (54,132) $ 58,704 $ 51,381 U.S. income taxes 6,189 (6,967) (3,510) Unrealized (losses) gains arising during the period, net of U.S. income taxes (47,943) 51,737 47,871 Less reclassification adjustment: Net realized investment gains 4,924 1,045 1,081 U.S. income taxes (946) (93) (152) Reclassification adjustment for investment gains realized in net income 3,978 952 929 Other comprehensive (loss) income $ (51,921) $ 50,785 $ 46,942 In addition to the net realized investment gains of $4.9 million, $1.0 million, and $1.1 million on available-for-sale fixed maturity securities for the years ended December 31, 2021, 2020, and 2019, the Company recognized net realized and unrealized investment gains (losses) in the respective years of $5.8 million, $(15.4) million, and $(10.1) million on its investments in bank loan participations and $4.8 million, $(1.7) million, and $6.0 million on its investments in equity securities. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has four reportable segments, three of which are separately managed business units and the fourth (“Corporate and Other”) includes the Company’s remaining operations. The Excess and Surplus Lines segment primarily offers commercial excess and surplus lines liability and excess property insurance products. The Specialty Admitted Insurance segment offers workers’ compensation insurance coverage as well as specialty admitted fronting and program business. The Casualty Reinsurance segment offers commercial liability and non-catastrophe property reinsurance to U.S. insurance companies and to the Company’s U.S.-based insurance subsidiaries. The Corporate and Other segment consists of certain management and treasury activities of James River Group, James River UK, and JRG Holdings as well as interest expense associated with senior debt and Junior Subordinated Debt, and investment income from investments classified as other invested assets. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Segment revenues for each reportable segment consist of net earned premiums, net investment income, and realized and unrealized (losses) gains on investments. Segment profit (loss) for each reportable segment is measured by underwriting profit (loss), which is generally defined as net earned premiums less losses and loss adjustment expenses and other operating expenses of the operating segments. Gross fee income of the Excess and Surplus Lines segment and Specialty Admitted Insurance segment is included in the respective segment’s underwriting (loss) profit. Gross fee income of $4.5 million ($0.0 million from the Excess and Surplus Lines segment and $4.5 million from the Specialty Admitted Insurance segment), $3.4 million ($1.6 million from the Excess and Surplus Lines segment and $1.8 million from the Specialty Admitted Insurance segment) and $9.5 million ($9.1 million from the Excess and Surplus Lines segment and $421,000 from the Specialty Admitted Insurance segment) was included in other income and in underwriting (loss) profit for the years ended December 31, 2021, 2020 and 2019, respectively. Segment results are reported prior to the effects of the intercompany reinsurance agreements between the Company’s insurance and reinsurance subsidiaries. All gross written premiums and net earned premiums for all periods presented were generated from policies issued to U.S. based insureds. Excess and Specialty Casualty Corporate Total (in thousands) As of and for the Year Ended December 31, 2021 Gross written premiums $ 833,657 $ 491,561 $ 182,081 $ — $ 1,507,299 Net earned premiums 486,000 75,371 134,223 — 695,594 Segment revenues 508,829 83,855 179,354 842 772,880 Net investment income 13,811 3,044 39,445 565 56,865 Interest expense — — — 8,922 8,922 Underwriting (loss) profit of operating segments (121,478) 9,667 (117,526) — (229,337) Segment goodwill 181,831 — — — 181,831 Segment assets 1,997,192 1,062,125 1,857,462 31,771 4,948,550 As of and for the Year Ended December 31, 2020 Gross written premiums $ 699,143 $ 408,691 $ 149,166 $ — $ 1,257,000 Net earned premiums 415,168 57,505 134,133 — 606,806 Segment revenues 429,918 62,790 166,837 9,144 668,689 Net investment income 18,664 3,392 42,554 8,758 73,368 Interest expense — — — 10,033 10,033 Underwriting profit (loss) of operating segments 9,752 4,185 (18,364) — (4,427) Segment goodwill 181,831 — — — 181,831 Segment assets 2,208,344 907,604 1,899,328 47,796 5,063,072 As of and for the Year Ended December 31, 2019 Gross written premiums $ 922,320 $ 387,642 $ 160,773 $ — $ 1,470,735 Net earned premiums 625,528 54,338 143,880 — 823,746 Segment revenues 657,501 61,241 183,700 4,683 907,125 Net investment income 21,358 3,802 46,325 4,167 75,652 Interest expense — — — 10,596 10,596 Underwriting profit (loss) of operating segments 19,157 5,913 (7,161) — 17,909 Segment goodwill 181,831 — — — 181,831 Segment assets 2,481,934 786,433 1,699,473 56,565 5,024,405 The following table reconciles the underwriting (loss) profit of operating segments by individual segment to income before income taxes: Year Ended December 31, 2021 2020 2019 (in thousands) Underwriting (loss) profit of the operating segments: Excess and Surplus Lines $ (121,478) $ 9,752 $ 19,157 Specialty Admitted Insurance 9,667 4,185 5,913 Casualty Reinsurance (117,526) (18,364) (7,161) Total underwriting (loss) profit of operating segments (229,337) (4,427) 17,909 Other operating expenses of the Corporate and Other segment (27,609) (29,418) (27,664) Underwriting loss (256,946) (33,845) (9,755) Net investment income 56,865 73,368 75,652 Net realized and unrealized gains (losses) on investments 15,564 (16,030) (2,919) Other income 353 1,153 1,137 Other expenses (2,585) (2,138) (1,055) Interest expense (8,922) (10,033) (10,596) Amortization of intangible assets (363) (538) (597) (Loss) income before income taxes $ (196,034) $ 11,937 $ 51,867 The Company currently has 15 underwriting divisions, including 13 in the Excess and Surplus Lines segment, one in the Specialty Admitted Insurance segment, and one in the Casualty Reinsurance segment. Each underwriting division focuses on a specific industry group or coverage. Gross written premiums by segment and underwriting division are presented below: Year Ended December 31, 2021 2020 2019 (in thousands) Excess Casualty $ 285,082 $ 213,037 $ 118,954 General Casualty 140,608 125,433 115,832 Manufacturers and Contractors 139,720 122,880 105,096 Excess Property 47,241 37,332 31,606 Energy 46,216 51,109 45,442 Life Sciences 35,935 35,163 24,462 Commercial Auto 34,630 30,029 405,565 Allied Health 35,192 26,918 26,713 Small Business 32,593 24,790 19,725 Environmental 17,050 17,753 16,539 Professional Liability 8,104 6,881 6,441 Sports and Entertainment 9,442 6,118 4,212 Medical Professionals 1,844 1,700 1,733 Total Excess and Surplus Lines segment 833,657 699,143 922,320 Specialty Admitted Insurance segment 491,561 408,691 387,642 Casualty Reinsurance segment 182,081 149,166 160,773 Total $ 1,507,299 $ 1,257,000 $ 1,470,735 The Company does business with three brokers that generated $239.1 million, $197.3 million and $132.5 million of gross written premiums for the Excess and Surplus Lines segment for the year ended December 31, 2021, representing 15.9%, 13.1% and 8.8% of consolidated gross written premiums and 28.7%, 23.7% and 15.9% of the Excess and Surplus Lines segment’s gross written premiums, respectively. The Company has agency contracts with various branches within the aforementioned brokers. No other broker generated 10.0% or more of the gross written premiums for the Excess and Surplus Lines segment for the year ended December 31, 2021. No individual insured generated 10.0% or more of the gross written premiums for the Excess and Surplus Lines segment for the year ended December 31, 2021. The Specialty Admitted Insurance segment accepts applications for insurance from a variety of sources, including independent retail agents, program administrators and managing general agents (“MGAs”). The Company does business with two agencies that generated $124.1 million (Atlas General Insurance Services) and $89.5 million of gross written premiums for the Specialty Admitted Insurance segment for the year ended December 31, 2021, representing 8.2% and 5.9% of the consolidated gross written premiums and 25.2% and 18.2% of the Specialty Admitted Insurance segment’s gross written premiums, respectively. No other agency generated 10.0% or more of the gross written premiums for the Specialty Admitted Insurance segment for the year ended December 31, 2021. The Company does business with three brokers that generated $80.1 million, $53.9 million, and $20.0 million of gross written premiums for the Casualty Reinsurance segment for the year ended December 31, 2021, representing 5.3%, 3.6%, and 1.3% of consolidated gross written premiums and 44.0%, 29.6%, and 11.0% of the Casualty Reinsurance segment’s gross written premiums, respectively. No other broker generated 10.0% or more of the gross written premiums for the Casualty Reinsurance segment for the year ended December 31, 2021. The Casualty Reinsurance segment assumed business from three unaffiliated ceding companies that generated $76.6 million, $22.9 million, and $16.2 million of gross written premiums for the year ended December 31, 2021, representing 5.1%, 1.5%, and 1.1% of consolidated gross written premiums and 42.1%, 12.6%, and 8.9% of the Casualty Reinsurance segment’s gross written premiums, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Three levels of inputs are used to measure fair value of financial instruments: (1) Level 1: quoted price (unadjusted) in active markets for identical assets, (2) Level 2: inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument, and (3) Level 3: inputs to the valuation methodology are unobservable for the asset or liability. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair values of fixed maturity securities, equity securities, and bank loan participations have been determined using fair value prices provided by the Company's investment accounting services provider or investment managers, who utilize internationally recognized independent pricing services. The prices provided by the independent pricing services are generally based on observable market data in active markets ( e.g. broker quotes and prices observed for comparable securities). Values for U.S. Treasury and publicly-traded equity securities are generally based on Level 1 inputs which use the market approach valuation technique. The values for all other fixed maturity securities (including state and municipal securities and obligations of U.S. government corporations and agencies) and bank loan participations generally incorporate significant Level 2 inputs, and in some cases, Level 3 inputs, using the market approach and income approach valuation techniques. There have been no changes in the Company’s use of valuation techniques since December 31, 2019. The Company reviews fair value prices provided by its outside investment accounting service provider or investment managers for reasonableness by comparing the fair values provided by the managers to those provided by its investment custodian. The Company also reviews and monitors changes in unrealized gains and losses. The Company has not historically adjusted security prices. The Company obtains an understanding of the methods, models and inputs used by the investment managers and independent pricing services, and controls are in place to validate that prices provided represent fair values. The Company’s control process includes, but is not limited to, initial and ongoing evaluation of the methodologies used, a review of specific securities and an assessment for proper classification within the fair value hierarchy, and obtaining and reviewing internal control reports for our investment manager that obtains fair values from independent pricing services. Assets measured at fair value on a recurring basis as of December 31, 2021 are summarized below: Fair Value Measurements Using Quoted Prices Significant Significant Total (in thousands) Fixed maturity securities, available-for-sale: State and municipal $ — $ 333,717 $ — $ 333,717 Residential mortgage-backed — 246,631 — 246,631 Corporate — 732,335 — 732,335 Commercial mortgage and asset-backed — 304,488 304,488 U.S. Treasury securities and obligations guaranteed by the U.S. government 59,988 402 — 60,390 Total fixed maturity securities, available-for-sale $ 59,988 $ 1,617,573 $ — $ 1,677,561 Equity securities: Preferred stock $ — $ 63,612 $ — $ 63,612 Common stock 41,244 3,452 102 44,798 Total equity securities $ 41,244 $ 67,064 $ 102 $ 108,410 Bank loan participations $ — $ 156,043 $ — $ 156,043 Short-term investments $ — $ 136,563 $ — $ 136,563 Assets measured at fair value on a recurring basis as of December 31, 2020 are summarized below: Fair Value Measurements Using Quoted Prices Significant Significant Total (in thousands) Fixed maturity securities, available-for-sale: State and municipal $ — $ 296,405 $ — $ 296,405 Residential mortgage-backed — 293,848 — 293,848 Corporate — 766,822 — 766,822 Commercial mortgage and asset-backed — 326,719 — 326,719 U.S. Treasury securities and obligations guaranteed by the U.S. government 99,384 464 — 99,848 Total fixed maturity securities, available-for-sale $ 99,384 $ 1,684,258 $ — $ 1,783,642 Equity securities: Preferred stock $ — $ 67,495 $ — $ 67,495 Common stock 15,793 5,015 672 21,480 Total equity securities $ 15,793 $ 72,510 $ 672 $ 88,975 Bank loan participations $ — $ 147,296 $ 308 $ 147,604 Short-term investments $ — $ 130,289 $ — $ 130,289 A reconciliation of the beginning and ending balances of available-for-sale fixed maturity securities, equity securities, and bank loan participations (following the Company's election of the fair value option in accounting for bank loan participations effective January 1, 2020) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is shown below: Year Ended December 31, 2021 2020 2019 (in thousands) Beginning balance $ 980 $ 43 $ 4,442 Transfers in to Level 3 8 358 3,010 Transfers out of Level 3 (6) (767) (7,238) Purchases — 1,417 — Sales (426) — — Maturities, calls and paydowns (379) (17) — Amortization of discount — 2 — Total gains or losses (realized/unrealized): Included in earnings (75) (56) (171) Included in other comprehensive income — — — Ending balance $ 102 $ 980 $ 43 The Company held one equity security at December 31, 2021 for which the fair value was determined using significant unobservable inputs (Level 3). The fair value of $102,000 for the equity security was based on expected proceeds from its sale. During 2021, one equity security was transferred from Level 2 to Level 3 as the security was no longer actively traded. This security was exchanged for an equity security that is publicly traded and it was transferred from Level 3 to Level 1. The Company held one bank loan participation and two equity securities at December 31, 2020 and one equity security at December 31, 2019 for which the fair value was determined using significant unobservable inputs (Level 3). A market approach using prices in trades of comparable securities was utilized to determine a fair value of $980,000 at December 31, 2020 and $43,000 at December 31, 2019. During 2019, one equity security was transferred from Level 1 to Level 3 as the security was no longer actively traded. The Company was subsequently able to obtain a quoted price from a pricing vendor for the equity security and it was transferred from Level 3 to Level 2. During 2020, the Company was able to obtain a quoted price from a vendor for two bank loan participations and one equity security and transferred them to Level 2. Transfers out of Level 3 occur when the Company is able to obtain reliable prices from pricing vendors for which the Company was previously unable to obtain reliable prices. Transfers in to Level 3 occur when the Company is unable to obtain reliable prices for securities from pricing vendors and instead must use broker price quotes. There were no transfers between Level 1 and Level 2 during 2021, 2020 or 2019. The Company recognizes transfers between levels at the beginning of the reporting period. In the determination of the fair value for bank loan participations and certain high yield bonds, the Company’s investment manager endeavors to obtain data from multiple external pricing sources. External pricing sources may include brokers, dealers and price data vendors that provide a composite price based on prices from multiple dealers. Such external pricing sources typically provide valuations for normal institutional size trading units of such securities using methods based on market transactions for comparable securities, and various relationships between securities, as generally recognized by institutional dealers. For investments in which the investment manager determines that only one external pricing source is appropriate or if only one external price is available, the relevant investment is generally recorded at fair value based on such price. Investments for which external sources are not available or are determined by the investment manager not to be representative of fair value are recorded at fair value as determined by the Company, with input from its investment managers and valuation specialists as considered necessary. In determining the fair value of such investments, the Company considers one or more of the following factors: type of security held, convertibility or exchangeability of the security, redeemability of the security (including the timing of redemptions), application of industry accepted valuation models, recent trading activity, liquidity, estimates of liquidation value, purchase cost, and prices received for securities with similar terms of the same issuer or similar issuers. There were no investments for which external sources were unavailable to determine fair value as of December 31, 2021 and 2020. The carrying values and fair values of financial instruments are summarized below: December 31, 2021 2020 Carrying Fair Carrying Fair (in thousands) Assets Fixed maturity securities, available-for-sale $ 1,677,561 $ 1,677,561 $ 1,783,642 $ 1,783,642 Equity securities 108,410 108,410 88,975 88,975 Bank loan participations 156,043 156,043 147,604 147,604 Cash and cash equivalents 190,123 190,123 162,260 162,260 Restricted cash equivalents 102,005 102,005 859,920 859,920 Short-term investments 136,563 136,563 130,289 130,289 Other invested assets – notes receivable 4,500 4,834 4,500 5,302 Liabilities Senior debt 262,300 252,213 262,300 250,953 Junior subordinated debt 104,055 106,635 104,055 110,612 The fair values of fixed maturity securities, equity securities, and bank loan participations have been determined using quoted market prices for securities traded in the public market or prices using bid or closing prices for securities not traded in the public marketplace. The fair values of cash and cash equivalents and short-term investments approximate their carrying values due to their short-term maturity. The fair values of other invested assets-notes receivable, senior debt, and junior subordinated debt at December 31, 2021 and 2020 were determined by calculating the present value of expected future cash flows under the terms of the note agreements or debt agreements, as applicable, discounted at an estimated market rate of interest at December 31, 2021 and 2020, respectively. The fair values of senior debt and junior subordinated debt at December 31, 2021 and 2020 were determined using inputs to the valuation methodology that are unobservable (Level 3). |
Statutory Matters
Statutory Matters | 12 Months Ended |
Dec. 31, 2021 | |
Statutory Matters [Abstract] | |
Statutory Matters | Statutory Matters U.S. U.S. state insurance laws and regulations prescribe accounting practices for determining statutory net income and capital and surplus for insurance companies. In addition, state regulators may permit statutory accounting practices that differ from prescribed practices. Statutory accounting practices prescribed or permitted by regulatory authorities for the Company’s insurance subsidiaries differ from U.S. GAAP. The principal differences between SAP and GAAP as they relate to the financial statements of the Company’s insurance subsidiaries are (a) policy acquisition costs are expensed as incurred under SAP, whereas they are deferred and amortized under GAAP, (b) certain assets are not admitted for purposes of determining surplus under SAP, (c) the classification and carrying amounts of investments in certain securities are different under SAP and GAAP, and (d) the criteria for providing asset valuation allowances and the methodologies used to determine the amount thereof are different under SAP and GAAP. Combined net income, statutory capital and surplus and minimum required statutory capital and surplus, as determined in accordance with statutory accounting practices, for the U.S. insurance subsidiaries as of December 31, 2021, 2020, and 2019 and for the years then ended are summarized as follows: 2021 2020 2019 (in thousands) Statutory net (loss) income $ (3,847) $ (710) $ 3,586 Statutory capital and surplus 325,368 286,449 266,715 Minimum required statutory capital and surplus 111,031 100,170 111,208 Risk-Based Capital (“RBC”) requirements promulgated by the National Association of Insurance Commissioners require property-casualty insurers to maintain minimum capitalization levels determined based on formulas incorporating various business risks of the insurance subsidiaries. As of December 31, 2021, the insurance subsidiaries’ adjusted capital and surplus exceeds their authorized control level RBC. Bermuda The Company has two Bermuda-based insurance subsidiaries: JRG Re, a Class 3B insurer and Carolina Re, a Class 3A insurer. Under the Bermuda Insurance Act 1978 and related regulations, an insurer must maintain minimum statutory capital and surplus at the greater of a minimum solvency margin (“MSM”) and the Enhanced Capital Requirement (“ECR”), which is the higher of the MSM and capital calculated by the Bermuda Solvency Capital Requirement (“BSCR”) model or an approved internal model. The combined estimated Bermuda insurers minimum statutory solvency margin required at December 31, 2021 was approximately $167.1 million (2020: $172.9 million). Actual combined statutory capital and surplus at December 31, 2021 was $518.7 million (2020: $615.2 million). The insurers had combined statutory net (loss) income of $(141.5) million for 2021, $20.8 million for 2020, and $53.2 million for 2019. The combined ECR for the year ended December 31, 2020 was $419.7 million. The BSCR models for the year ended December 31, 2021 will not be filed with the Bermuda Monetary Authority until April 30, 2022. The Company believes that the minimum statutory capital and surplus requirements will be met. The insurers must also maintain a minimum liquidity ratio in which the value of its relevant assets is not less than 75.0% of the amount of its relevant liabilities for general business. Relevant assets include cash and cash equivalents, fixed maturities, quoted alternative investments, accrued interest income, premiums receivable, losses recoverable from reinsurers, and funds withheld. The relevant liabilities include total insurance provisions and other liabilities less deferred income taxes and letters of credit, guarantees and other instruments. As of December 31, 2021, the minimum liquidity ratio requirements were met. |
Dividend Restrictions
Dividend Restrictions | 12 Months Ended |
Dec. 31, 2021 | |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments [Abstract] | |
Dividend Restrictions | Dividend Restrictions U.S. The insurance statutes of the U.S.-based insurance subsidiaries’ states of domicile limit the amount of dividends that they may pay annually without first obtaining regulatory approval. Generally, the limitations are based on the greater of statutory net income for the preceding year or 10.0% of statutory surplus at the end of the preceding year. The maximum amount of dividends available to James River Group from its U.S. insurance subsidiaries during 2022 without regulatory approval is $27.2 million. However, U.S. insurance regulators have broad powers to prevent the reduction of statutory surplus to inadequate levels and could refuse to permit the payment of dividends. Distributions from the Company’s U.S.-based subsidiaries to its U.K. intermediate holding company, James River UK, are generally subject to a 5% dividend withholding tax. The payment of any dividends by the Company’s U.S.-based subsidiaries directly to a Bermuda-based entity is subject to U.S. taxes at a 30.0% tax rate. JRG Holdings has determined that earnings of its U.S. subsidiaries have been and will be indefinitely reinvested in U.S. operations. Bermuda The Bermuda Insurance Act of 1978 prohibits an insurer from declaring or paying a dividend if it is in breach of its minimum solvency margin, its enhanced capital requirement, or its minimum liquidity ratio, or if the declaration or payment of such dividend would cause such a breach. An insurer can declare or pay dividends without prior regulatory approval up to 25% of the total statutory capital and surplus (as shown on its previous financial year's statutory balance sheet). The maximum combined amount of dividends and return of capital that can be paid without prior regulatory approval from our Bermuda insurers at December 31, 2021 is calculated to be approximately $129.7 million. However, this dividend amount is subject to annual enhanced solvency requirement calculations. |
Other Related Party Transaction
Other Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Other Related Party Transactions | Other Related Party Transactions The Company leases a commercial office building which houses the Company’s Richmond, Virginia operations under the terms of a non-cancelable lease from an entity with which it is affiliated. The term of the lease, which has been amended from time to time, runs through 2026. Operating costs under the lease were $2.1 million, $1.9 million, and $2.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. Upon retiring effective July 31, 2021, the Company’s former President and Chief Operating Officer entered into a consulting agreement with the Company to provide consulting services as requested by the Company’s Chief Executive Officer during the period August 1, 2021 through December 31, 2021. The Company incurred expenses of $146,000 in 2021 as compensation for rendering these consulting services. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 21, 2022, the Board of Directors declared a cash dividend of $0.05 per share. The dividend is payable on March 31, 2022 to shareholders of record on March 14, 2022. On February 21, 2022, the Board of Directors approved awards under the 2014 LTIP and the 2014 Director Plan to the Company’s employees and directors with an aggregate fair value of $11.0 million and a grant date of March 2, 2022. On February 23, 2022, one of the Company’s primary operating subsidiaries, JRG Reinsurance Company Ltd., entered into a loss portfolio transfer retrocession agreement (the “Retrocession Agreement”) with Fortitude Reinsurance Company Ltd. (“FRL”) under which FRL will reinsure the majority of the reserves in the Company’s Casualty Reinsurance segment. Under the terms of the transaction, at closing, JRG Re will (a) cede to FRL all existing and future claims for losses arising under certain casualty reinsurance agreements with underlying insurance companies with treaty inception dates ranging from 2011 to 2020 (the “Subject Business”), in each case net of third-party reinsurance and other recoveries, up to an aggregate limit of $400.0 million; (b) continue to manage and retain the benefit of other third-party reinsurance on the Subject Business; (c) pay FRL a reinsurance premium of $335.0 million, $310.0 million of which JRG Re will credit to a notional funds withheld account (the “Funds Withheld Account”) and $25.0 million of which JRG Re will pay in cash to FRL; and (d) pay FRL a 2% per annum crediting rate on the Funds Withheld Account balance on a quarterly basis. The total premium, initial Funds Withheld Account credit, and aggregate limit will be adjusted for claims paid from October 1, 2021 to the closing date. An after-tax loss of $6.8 million will be recognized as adverse loss and loss adjustment reserve development in the Casualty Reinsurance segment associated with the Retrocession Agreement during the first quarter of 2022. The Retrocession Agreement will close upon receipt of required regulatory approvals by FRL and satisfaction of other customary closing conditions. |
SCHEDULE I - Summary of Investm
SCHEDULE I - Summary of Investments - Other than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments - Other than Investments in Related Parties | Summary of Investments—Other than Investments in Related Parties Type of Investment Cost or Fair Amount at which shown on Balance Sheet (1) (in thousands) Fixed maturity securities, available-for-sale: State and municipal $ 323,773 $ 333,717 $ 333,717 Residential mortgage-backed 246,586 246,631 246,631 Corporate 711,930 732,335 732,335 Commercial mortgage and asset-backed 301,247 304,488 304,488 U.S. Treasury securities and obligations guaranteed by the U.S. government 60,329 60,390 60,390 Total fixed maturity securities, available-for-sale 1,643,865 1,677,561 1,677,561 Equity securities: Preferred Stock 51,584 63,612 63,612 Common Stock 44,199 44,798 44,798 Total equity securities 95,783 108,410 108,410 Bank loan participations 156,505 156,043 156,043 Short-term investments 136,563 136,563 136,563 Other invested assets 15,248 Total invested assets $ 2,093,825 (1) Differences between the amounts in this column and the amounts in the consolidated balance sheet are due to this schedule excluding investments in related parties. |
SCHEDULE II - Condensed Financi
SCHEDULE II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE II - Condensed Financial Information of Registrant | Condensed Financial Information of Registrant Balance Sheets (Parent Company) December 31, 2021 2020 (in thousands) Assets Cash and cash equivalents $ 157 $ 571 Investment in subsidiaries 1,003,762 1,145,887 Due from subsidiaries 3,356 1,140 Other assets 3,197 3,116 Total assets $ 1,010,472 $ 1,150,714 Liabilities and shareholders’ equity Liabilities: Accrued expenses $ 1,419 $ 1,824 Senior debt 247,300 247,300 Junior subordinated debt 15,928 15,928 Notes payable to subsidiary — 70,000 Due to subsidiaries 19,847 19,391 Other liabilities 616 663 Total liabilities 285,110 355,106 Commitments and contingent liabilities Shareholders’ equity: Class A common shares 7 6 Additional paid-in capital 862,040 664,476 Retained (deficit) earnings (166,663) 49,227 Accumulated other comprehensive income 29,978 81,899 Total shareholders’ equity 725,362 795,608 Total liabilities and shareholders’ equity $ 1,010,472 $ 1,150,714 See accompanying notes. SCHEDULE II JAMES RIVER GROUP HOLDINGS, LTD. AND SUBSIDIARIES Condensed Financial Information of Registrant Statements of (Loss) Income and Comprehensive (Loss) Income (Parent Company) Year Ended December 31, 2021 2020 2019 (in thousands) Revenues: Other income $ 39 $ 45 $ 61 Total revenues 39 45 61 Expenses: Other operating expenses 11,632 14,960 14,267 Other expenses 469 — — Interest expense 5,532 6,234 5,047 Total expenses 17,633 21,194 19,314 Loss before equity in net income of subsidiaries (17,594) (21,149) (19,253) Equity in net (loss) income of subsidiaries (155,205) 25,973 57,592 Net (loss) income $ (172,799) $ 4,824 $ 38,339 Other comprehensive (loss) income: Equity in other comprehensive (losses) earnings of subsidiaries (51,921) 50,785 46,942 Total comprehensive (loss) income $ (224,720) $ 55,609 $ 85,281 See accompanying notes. SCHEDULE II JAMES RIVER GROUP HOLDINGS, LTD. AND SUBSIDIARIES Condensed Financial Information of Registrant Statements of Cash Flows (Parent Company) Year Ended December 31, 2021 2020 2019 (in thousands) Operating activities Net (loss) income $ (172,799) $ 4,824 $ 38,339 Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: Provision for depreciation and amortization 216 216 182 Share based compensation expense 6,658 7,625 7,178 Equity in undistributed earnings of subsidiaries 218,204 (25,973) (49,592) Changes in operating assets and liabilities (2,364) 6,433 (2,782) Net cash provided by (used in) operating activities 49,915 (6,875) (6,675) Investing activities Net cash provided by investing activities — — — Financing activities Dividends paid (43,236) (37,051) (36,720) Senior debt issuance — 164,000 60,000 Senior debt repayments — (60,000) (20,000) Subsidiary note issuance — 30,000 — Subsidiary note repayments (70,000) — — Contribution to subsidiary (128,000) (90,000) — Debt issue costs paid — — (711) Issuances of common shares - public offering 192,107 — — Issuances of common shares under equity incentive plans 1,877 2,580 8,286 Common share repurchases (3,077) (3,604) (2,899) Net cash (used in) provided by financing activities (50,329) 5,925 7,956 Change in cash and cash equivalents (414) (950) 1,281 Cash and cash equivalents at beginning of period 571 1,521 240 Cash and cash equivalents at end of period $ 157 $ 571 $ 1,521 Supplemental information Interest paid $ 5,954 $ 6,530 $ 5,710 See accompanying notes. SCHEDULE II JAMES RIVER GROUP HOLDINGS, LTD. AND SUBSIDIARIES Condensed Financial Information of Registrant Notes to Condensed Financial Statements 1. Accounting Policies Organization James River Group Holdings, Ltd. (the “Company”) is an exempted holding company registered in Bermuda, organized for the purpose of acquiring and managing insurance and reinsurance entities. Basis of Presentation The accompanying condensed financial statements have been prepared using the equity method. Under the equity method, the investment in consolidated subsidiaries is stated at cost plus equity in undistributed earnings of consolidated subsidiaries since the date of acquisition. These condensed financial statements should be read in conjunction with the Company’s consolidated financial statements. Estimates and Assumptions Preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates. Adopted Accounting Standards There were no new accounting standards adopted in 2021 that materially impacted the Company's financial statements . |
SCHEDULE III - Supplementary In
SCHEDULE III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | Supplementary Insurance Information (in thousands) Deferred Reserve Unearned Net Net Losses Amortization Other Net December 31, 2021 Excess and Surplus Lines $ 26,297 $ 1,623,635 $ 382,479 $ 486,000 $ 13,811 $ 516,299 $ 50,283 $ 91,179 $ 501,250 Specialty Admitted (4,889) 686,643 165,998 75,371 3,044 55,875 (8,395) 14,333 83,935 Casualty Reinsurance 47,118 438,195 179,075 134,223 39,445 220,178 27,775 31,571 159,195 Corporate and Other — — — — 565 — — 27,609 — Total $ 68,526 $ 2,748,473 $ 727,552 $ 695,594 $ 56,865 $ 792,352 $ 69,663 $ 164,692 $ 744,380 December 31, 2020 Excess and Surplus Lines $ 25,875 $ 1,276,054 $ 345,976 $ 415,168 $ 18,664 $ 318,467 $ 49,387 $ 88,520 $ 450,346 Specialty Admitted (3,073) 600,309 136,355 57,505 3,392 41,928 (4,525) 13,213 59,884 Casualty Reinsurance 40,151 315,717 148,040 134,133 42,554 118,150 30,716 34,347 137,544 Corporate and Other — — — — 8,758 — — 29,418 — Total $ 62,953 $ 2,192,080 $ 630,371 $ 606,806 $ 73,368 $ 478,545 $ 75,578 $ 165,498 $ 647,774 December 31, 2019 Excess and Surplus Lines $ 24,428 $ 1,245,581 $ 267,924 $ 625,528 $ 21,358 $ 528,133 $ 49,720 $ 87,326 $ 685,814 Specialty Admitted (2,902) 511,027 115,606 54,338 3,802 34,860 (3,560) 13,986 58,637 Casualty Reinsurance 40,480 288,898 140,847 143,880 46,325 109,109 37,733 41,932 151,699 Corporate and Other — — — — 4,167 — — 27,664 — Total $ 62,006 $ 2,045,506 $ 524,377 $ 823,746 $ 75,652 $ 672,102 $ 83,893 $ 170,908 $ 896,150 |
SCHEDULE IV - Reinsurance
SCHEDULE IV - Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Reinsurance | Reinsurance Direct Ceded Assumed Net Percentage (in thousands) Year Ended December 31, 2021 Excess and Surplus Lines Written Premiums $ 833,657 $ 332,407 $ — $ 501,250 — Specialty Admitted Written Premiums 488,377 407,626 3,184 83,935 3.8 % Casualty Reinsurance Written Premiums — 22,886 182,081 159,195 114.4 % Total Written Premiums $ 1,322,034 $ 762,919 $ 185,265 $ 744,380 24.9 % Year Ended December 31, 2020 Excess and Surplus Lines Written Premiums $ 699,143 $ 248,797 $ — $ 450,346 — Specialty Admitted Written Premiums 404,851 348,807 3,840 59,884 6.4 % Casualty Reinsurance Written Premiums — 11,622 149,166 137,544 108.4 % Total Written Premiums $ 1,103,994 $ 609,226 $ 153,006 $ 647,774 23.6 % Year Ended December 31, 2019 Excess and Surplus Lines Written Premiums $ 922,320 $ 236,506 $ — $ 685,814 — Specialty Admitted Written Premiums 383,628 329,005 4,014 58,637 6.8 % Casualty Reinsurance Written Premiums — 9,074 160,773 151,699 106.0 % Total Written Premiums $ 1,305,948 $ 574,585 $ 164,787 $ 896,150 18.4 % |
SCHEDULE V - Valuation and Qual
SCHEDULE V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts Balance Additions Amounts Charged to Expense Deductions Amounts Written Off or Disposals Balance (in thousands) Year Ended December 31, 2021 Allowance for Credit Losses on Premiums Receivable and Agents' Balances $ 8,317 $ 9,426 $ (1,063) $ 16,680 Allowance for Credit Losses on Reinsurance Balances 335 296 — 631 Allowance for Credit Losses on Bank Loans — — — — Total $ 8,652 $ 9,722 $ (1,063) $ 17,311 Year Ended December 31, 2020 Allowance for Credit Losses on Premiums Receivable and Agents' Balances $ 5,659 $ 3,318 $ (660) $ 8,317 Allowance for Credit Losses on Reinsurance Balances 335 — — 335 Allowance for Credit Losses on Bank Loans 7,181 — (7,181) — Total $ 13,175 $ 3,318 $ (7,841) $ 8,652 Year Ended December 31, 2019 Allowance for Credit Losses on Premiums Receivable and Agents' Balances $ 3,948 $ 2,523 $ (812) $ 5,659 Allowance for Credit Losses on Bank Loans — 8,898 (1,717) 7,181 Total $ 3,948 $ 11,421 $ (2,529) $ 12,840 In connection with the adoption of ASU 2016-13, the Company elected the fair value option in accounting for bank loan participations effective January 1, 2020. Under the fair value option, bank loan participations are measured at fair value, and changes in unrealized gains and losses in bank loan participations are reported in our income statement as net realized and unrealized gains (losses) on investments. Also u pon adoption of ASU 2016-13 |
SCHEDULE VI - Supplementary Inf
SCHEDULE VI - Supplementary Information Concerning Property Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
Supplementary Information Concerning Property Casualty Insurance Operations | Supplementary Information Concerning Property Casualty Insurance Operations Year Ended December 31, 2021 2020 2019 (in thousands) Deferred policy acquisition costs $ 68,526 $ 62,953 $ 62,006 Reserve for losses and loss adjustment expenses 2,748,473 2,192,080 2,045,506 Unearned premiums 727,552 630,371 524,377 Net earned premiums 695,594 606,806 823,746 Net investment income 56,865 73,368 75,652 Losses and loss adjustment expenses incurred: Current year 466,574 386,341 603,094 Prior year 325,778 92,204 69,008 Total losses and loss adjustment expenses incurred 792,352 478,545 672,102 Amortization of policy acquisition costs 69,663 75,578 83,893 Paid losses and loss adjustment expenses, net of reinsurance 522,747 469,945 488,729 Net written premiums 744,380 647,774 896,150 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), which vary in some respects from statutory accounting practices (“SAP”) which are prescribed or permitted by the various state insurance departments in the U.S. or by insurance regulators in Bermuda. The accompanying consolidated financial statements include the accounts and operations of the Company and its subsidiaries. Intercompany transactions and balances have been eliminated. |
Estimates and Assumptions | Estimates and Assumptions Preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates. |
Fixed Maturity and Equity Securities | Fixed Maturity and Equity Securities Fixed maturity securities classified as “available-for-sale” are carried at fair value, and unrealized gains and losses on such securities, net of any deferred taxes, are reported as a separate component of accumulated other comprehensive income. The Company does not have any securities classified as “held-to-maturity” or “trading”. Fair value generally represents quoted market value prices for securities traded in the public marketplace or prices analytically determined using bid or closing prices for securities not traded in the public marketplace. Premiums and discounts on mortgage-backed securities and asset-backed securities are amortized or accrued using the constant yield method which considers anticipated prepayments at the date of purchase. To the extent that the estimated lives of such securities change as a result of changes in estimated prepayment rates, the adjustments are included in net investment income using the retrospective method. Realized investment gains or losses are determined on a specific identification basis. Interest income is recognized as earned, and dividend income is recognized on the ex-dividend date. The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments on January 1, 2020. This update changed the impairment model for available-for-sale fixed maturities and requires the Company to determine whether unrealized losses on available-for-sale fixed maturities are due to credit-related factors. An allowance for credit losses is established for any credit-related impairments, limited to the amount by which fair value is below amortized cost. Changes in the allowance for credit losses are recognized in earnings and included in n et realized and unrealized gains (losses) on investments . Unrealized losses that are not credit-related continue to be recognized in other comprehensive income. |
Bank Loan Participations | Bank Loan Participations Bank loan participations are managed by a specialized outside investment manager. In connection with the adoption of ASU 2016-13, the Company elected the fair value option in accounting for bank loan participations effective January 1, 2020. Under the fair value option, bank loan participations are measured at fair value, and changes in unrealized gains and losses in bank loan participations are reported in our income statement as net realized and unrealized gains (losses) on investments. Losses due to credit-related impairments on bank loan participations are determined based upon consultations and advice from the Company's specialized investment manager and consideration of any adverse situations that could affect the borrower's ability to repay, the estimated value of underlying collateral, and other relevant factors. Interest income is accrued on the unpaid principal balance. Discounts and premiums are amortized to income using the interest method. Prior to the election of the fair value option on January 1, 2020, bank loan participations were generally stated at their outstanding unpaid principal balances net of unamortized premiums or discounts and net of any allowance for credit losses. The allowance for credit losses was maintained at a level considered adequate to absorb estimated probable credit losses. Generally, the accrual of interest on a bank loan participation is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest. A bank loan participation may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Interest received on nonaccrual loans generally is reported as investment income. There were no bank loans on nonaccrual status at December 31, 2021 or 2020. Generally, bank loan participations are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. |
Other Invested Assets | Other Invested Assets Other invested assets at December 31, 2021 and 2020 include the Company’s interests in private debt and equity investments. The investments are primarily focused in renewable energy, limited partnerships, and bank holding companies. Equity interests in various limited liability companies (“LLCs”) and limited partnerships are accounted for under the equity method, as the Company has determined that the equity method best reflects its economic interest in the underlying equity investment. |
Short-Term Investments | Short-Term Investments Short-term investments are carried at amortized cost, which approximates fair value. Short-term investments have maturities greater than three months but less than one year at the date of purchase. |
Cash Equivalents and Restricted Cash Equivalents | Cash Equivalents The Company considers highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Restricted Cash Equivalents |
Direct Written Premiums | Direct Written Premiums Direct written premiums are earned on a pro rata basis over the terms of the policies, generally 12 months. The portion of premiums written applicable to the unexpired terms of the policies in force is recorded as unearned premiums. Policies are accounted for on an individual basis, with no aggregation by counterparty. |
Assumed Reinsurance Premiums | Assumed Reinsurance Premiums Assumed reinsurance written premiums include amounts reported by brokers and ceding companies, supplemented by the Company’s own estimates of premiums when reports have not been received. Premiums on the Company’s excess of loss and pro rata reinsurance contracts are estimated when the business is underwritten. For excess of loss contracts, the deposit premium, as defined in the contract, is generally recorded as an estimate of premiums written at the inception date of the treaty. Estimates of premiums written under pro rata contracts are recorded in the period in which the underlying risks are expected to begin and are based on information provided by the brokers and the ceding companies. Reinsurance premium estimates are reviewed by management periodically. Any adjustment to these estimates is recorded in the period in which it becomes known. Reinsurance premiums assumed are earned over the terms of the underlying policies or reinsurance contracts. Contracts and policies written on a “losses occurring” basis cover claims that may occur during the term of the contract or policy, which is typically 12 months. Accordingly, the premium is earned evenly over the term. Contracts which are written on a “risks attaching” basis cover claims which attach to the underlying insurance policies written during the terms of such contracts. Premiums earned on such contracts usually extend beyond the original term of the reinsurance contract, typically resulting in recognition of premiums earned over a 24-month period in proportion to the level of underlying exposure. Contracts are accounted for on an individual basis, with no aggregation by counterparty. |
Premiums Receivable and Agents' Balances, Net | Premiums Receivable and Agents’ Balances, Net Premiums receivable and agents’ balances are carried at face value net of any allowance for credit losses. The allowance for credit losses represents the current estimate of expected credit losses based on the Company’s assessment of the collectability of receivables that are past due, historical collection percentages, and consideration of current economic conditions and expectations of future conditions that could affect ultimate collections. Receivables greater than 90 days past due were $7.5 million and $6.9 million at December 31, 2021 and 2020, respectively. The allowance for credit losses was $16.7 million and $8.3 million at December 31, 2021 and 2020, respectively. Credit loss expense was $9.4 million for the year ended December 31, 2021 ($7.1 million of which will be deducted from amounts due to our reinsurers), $3.3 million for the year ended December 31, 2020, and $2.5 million for the year ended December 31, 2019. Receivables written off against the allowance for credit losses totaled $1.1 million for the year ended December 31, 2021, $660,000 for the year ended December 31, 2020, and $812,000 for the year ended December 31, 2019. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Costs which are incrementally or directly related to the successful acquisition of new or renewal insurance business are deferred. These deferred costs are primarily commissions to agents, ceding commissions paid on reinsurance assumed, premium taxes, and the portion of underwriting fixed compensation and payroll related fringe benefits directly related to an insurance contract that has been acquired, net of ceding commissions related to reinsurance ceded. Amortization of such policy acquisition costs is charged to expense in proportion to premium earned over the estimated policy life. To the extent that unearned premiums on existing policies are not adequate to cover projected related costs and expenses, deferred policy acquisition costs are charged to earnings. The Company considers anticipated investment income in determining whether a premium deficiency exists. |
Reinsurance and Adjustable Features of Insurance and Reinsurance Contracts | Reinsurance and Adjustable Features of Insurance and Reinsurance Contracts Certain premiums and losses are ceded to other insurance companies or assumed from other insurance companies under various excess of loss and quota-share reinsurance contracts. The Company enters into ceded reinsurance contracts to limit its exposure to large losses, to limit exposure on new lines of insurance written by the Company, and to provide additional capacity for growth. Premiums, commissions, and losses and loss adjustment expenses on reinsured business are accounted for on a basis consistent with that used in accounting for the original policies issued and the terms of the reinsurance contracts. Reinsurance recoverables and prepaid reinsurance premiums are reported as assets. The Company uses a provision matrix to calculate the allowance for credit losses on reinsurance recoverables by applying impairment rates based on historical loss data to similarly rated reinsurance companies based on the expected duration of the receivables. The Company also considers the expected impact of current and future expected economic conditions and adjusts estimates if needed based on an evaluation of these factors. The allowance for credit losses on reinsurance recoverables at December 31, 2021 and 2020 was $631,000 and $335,000, respectively. Other amounts payable to insurance companies and reinsurers or receivable from insurance companies and reinsurers are netted where the right of offset exists. The Company receives ceding commissions in connection with certain ceded reinsurance. The ceding commissions are recorded as a reduction of other operating expenses. Certain reinsurance contracts include provisions that adjust premiums or acquisition expenses based upon the loss experience under the contracts. Premiums written and earned, as well as related acquisition expenses are recorded based upon the projected loss experience under the contracts. The Company’s Specialty Admitted Insurance segment writes insurance under specialty admitted fronting and program arrangements. The fronting and program arrangements may contain contractual provisions that adjust acquisition expenses based upon loss experience under the contracts. The specialty admitted fronting and program arrangements are significantly reinsured. These reinsurance contracts may also contain provisions that adjust premiums or acquisition expenses based upon the loss experience under the contracts. Premiums written and earned, as well as related acquisition expenses, are recorded based upon the projected loss experience under the contracts. |
Other Income | Other Income Other income is principally comprised of fee income earned on policies for which the Company has no exposure to underwriting risk. Fee income of $4.5 million, $3.4 million, and $9.5 million is included in other income for the years ended December 31, 2021, 2020, and 2019, respectively. Fees are earned on a pro rata basis over the service period of the underlying business. Policies are accounted for on an individual basis, with no aggregation by counterparty. |
Income Taxes | Income TaxesDeferred tax assets and deferred tax liabilities are provided for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of assets and liabilities and their respective U.S. tax basis. Deferred tax assets and liabilities are measured using enacted U.S. corporate tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance only when management believes it is more likely than not that some, or all, of the deferred tax assets will not be realized. The Company determined that no valuation allowance was necessary at December 31, 2021 or 2020. |
Goodwill | Goodwill Goodwill is tested annually for impairment in the fourth quarter of each calendar year, or more frequently if events or changes in circumstances indicate that the carrying amount of the Company’s reporting units, including goodwill, may exceed their fair values. The Company first assesses qualitative factors in determining whether it is necessary to perform the quantitative goodwill impairment test. If management determines that it is more likely than not that the fair value of a reporting unit is less than the carrying value based on qualitative factors then they will perform the quantitative goodwill impairment test. For the quantitative goodwill impairment testing, the fair value of the reporting units is determined using a combination of a market approach and an income approach which projects the future cash flows produced by the reporting units and discounts those cash flows to their present value. The projection of future cash flows is necessarily dependent upon assumptions on the future levels of income as well as business trends, prospects, market, and economic conditions. The results of the two approaches are weighted to determine the fair value of each reporting unit. When the fair value is less than the carrying value of the net assets of the reporting unit, including goodwill, an impairment loss is charged to operations. To determine the amount of any goodwill impairment, the implied fair value of reporting unit goodwill is compared to the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business |
Intangible Assets, Net | Intangible Assets, Net Intangible assets are initially recognized and measured at fair value. Specifically identified intangible assets with indefinite lives include trademarks and state insurance licenses and authorities. Other specifically identified intangible assets with lives ranging from 7.0 to 27.5 years represent relationships with brokers. These intangible assets are amortized on a straight-line basis over their estimated useful lives. Intangible assets with indefinite useful lives are reviewed for impairment at least annually. In evaluating whether there has been impairment to the intangible asset, management determines the fair value of the intangible asset and compares the resulting fair value to the carrying value of the intangible asset. If the carrying value exceeds the fair value, the intangible asset is written down to fair value, and the impairment is reported through earnings. The Company evaluates intangible assets with definite lives for impairment when impairment indicators are noted. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets with finite lives are tested for impairment whenever recognized events or changes in circumstances indicate the carrying value of these assets may not be recoverable. If indicators of impairment are present, fair value is calculated using estimated future cash flows expected to be generated from the use of those assets. An impairment loss is recognized only if the carrying amount of a long-lived asset or asset group is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset or asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. That assessment is based on the carrying amount of the asset or asset group at the date it is tested for recoverability. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset or asset group exceeds its fair value. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, which is included in “other assets” in the accompanying consolidated balance sheets, is reported at cost less accumulated depreciation and is depreciated principally on a straight-line basis over the estimated useful lives of the depreciable assets, generally three |
Reserve for Losses and Loss Adjustment Expenses | Reserve for Losses and Loss Adjustment Expenses The reserve for losses and loss adjustment expenses represents the estimated ultimate cost of all reported and unreported losses and loss adjustment expenses incurred and unpaid at the balance sheet date. The Company does not discount this reserve. The process of estimating the reserve for losses and loss adjustment expenses requires a high degree of judgment and is subject to a number of variables. The reserve for losses and loss adjustment expenses is estimated using individual case-basis valuations and statistical analyses. Those estimates are subject to the effects of trends in loss severity and frequency. The Company utilizes various actuarially-accepted reserving methodologies in determining the continuum of expected outcomes for its reserves. These methodologies utilize various inputs, including management’s initial expected loss ratio (the ratio of losses and loss adjustment expenses incurred to net earned premiums), expected reporting patterns and payment patterns for losses and loss adjustment expenses (based on insurance industry data and the Company’s own experience), and the Company’s actual paid and reported losses and loss adjustment expenses. An internal actuary reviews these results and (after applying appropriate professional judgment and other actuarial techniques that are considered necessary) presents recommendations to the Company’s management. Management uses this information and its judgment to make decisions on the final recorded reserve for losses and loss adjustment expenses. Management believes that the use of judgment is necessary to arrive at a best estimate for the reserve for losses and loss adjustment expenses given the long-tailed nature of the business generally written by the Company and the limited operating experience of the Casualty Reinsurance segment, the fronting and program business in the Specialty Admitted Insurance segment, and the commercial auto business in the Excess and Surplus Lines segment. Catastrophes of significant magnitude, including hurricanes and earthquakes, involve complex coverage issues. In estimating the reserve for losses and loss adjustment expenses for these catastrophes, management uses case reserve estimates based on information obtained from site inspections by the Company’s adjustors and the terms of coverage provided in the policies. Management estimates reserves for incurred but not reported claims for these catastrophes using judgment based on an assessment of the Company’s property insurance exposures where the catastrophes occur and the Company’s progress in settling claims. |
Share Based Compensation | Share Based Compensation The Company expenses the fair value of share equity awards over the vesting period of the award on a straight-line basis. The Black-Scholes-Merton option pricing model is used to value the options granted (see Note 12). Forfeitures of share-based awards are recognized as they occur. As the share based compensation expense is incurred, a corresponding increase to additional paid-in capital in shareholders’ equity is recognized. Share based compensation expense is reflected in “other operating expenses” in the accompanying consolidated statements of (loss) income and comprehensive (loss) income. |
Variable Interest Entities | Variable Interest Entities Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (“VIE”). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose, and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. |
(Loss) Earnings Per Share | (Loss) Earnings Per Share Basic (loss) earnings per share excludes dilution and is computed by dividing net (loss) income by the weighted-average number of common shares outstanding for the period. Diluted (loss) earnings per share reflects the dilution that could occur if securities or other contracts to issue common shares or common share equivalents were exercised or converted into common shares as calculated using the treasury stock method. When inclusion of common share equivalents increases the earnings per share or reduces the loss per share, the effect on earnings is anti-dilutive, and the diluted net earnings or net loss per share is computed excluding these common share equivalents. |
Adopted Accounting Standards | Adopted Accounting Standards There were no new accounting standards adopted in 2021 that materially impacted the Company's financial statements . Prospective Accounting Standards There are no prospective accounting standards which are expected to have a material impact on our financial statements subsequent to December 31, 2021. |
Leases | Operating lease costs are primarily comprised of rental expense for operating leases. Rental expense is recognized on a straight line basis over the lease term and includes amortization of the right-of-use lease asset and imputed interest on the lease liability. Operating lease costs are included in other operating expenses in the Company's consolidated statements of (loss) income and comprehensive (loss) income. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share | The following represents a reconciliation of the numerator and denominator of the basic and diluted (loss) earnings per share computations contained in the consolidated financial statements. Net (Loss) Income Weighted-Average (Loss) Earnings (in thousands, except per share data) Year ended December 31, 2021 Basic $ (172,799) 34,956,957 $ (4.94) Common share equivalents — — — Diluted $ (172,799) 34,956,957 $ (4.94) Year ended December 31, 2020 Basic $ 4,824 30,552,210 $ 0.16 Common share equivalents — 332,206 — Diluted $ 4,824 30,884,416 $ 0.16 Year ended December 31, 2019 Basic $ 38,339 30,275,184 $ 1.27 Common share equivalents — 398,740 (0.02) Diluted $ 38,339 30,673,924 $ 1.25 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Summary of Available-for-Sale Investments | The Company’s available-for-sale fixed maturity securities are summarized as follows: Cost or Gross Gross Fair (in thousands) December 31, 2021 Fixed maturity securities: State and municipal $ 323,773 $ 12,156 $ (2,212) $ 333,717 Residential mortgage-backed 246,586 2,384 (2,339) 246,631 Corporate 711,930 26,119 (5,714) 732,335 Commercial mortgage and asset-backed 301,247 4,941 (1,700) 304,488 U.S. Treasury securities and obligations guaranteed by the U.S. government 60,329 653 (592) 60,390 Total fixed maturity securities, available-for-sale $ 1,643,865 $ 46,253 $ (12,557) $ 1,677,561 December 31, 2020 Fixed maturity securities: State and municipal $ 277,241 $ 19,203 $ (39) $ 296,405 Residential mortgage-backed 286,104 7,784 (40) 293,848 Corporate 715,145 52,098 (421) 766,822 Commercial mortgage and asset-backed 314,911 12,611 (803) 326,719 U.S. Treasury securities and obligations guaranteed by the U.S. government 97,489 2,360 (1) 99,848 Total fixed maturity securities, available-for-sale $ 1,690,890 $ 94,056 $ (1,304) $ 1,783,642 |
Schedule of Summary of Available-for-Sale Investments by Contractual Maturity | The amortized cost and fair value of available-for-sale investments in fixed maturity securities at December 31, 2021 are summarized, by contractual maturity, as follows: Cost or Fair (in thousands) One year or less $ 86,238 $ 86,948 After one year through five years 463,670 477,474 After five years through ten years 310,943 314,147 After ten years 235,181 247,873 Residential mortgage-backed 246,586 246,631 Commercial mortgage and asset-backed 301,247 304,488 Total $ 1,643,865 $ 1,677,561 |
Schedule of Gross Unrealized Losses and Fair Value for Available-for-Sale Securities | The following table shows the Company’s gross unrealized losses and fair value for available-for-sale securities aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross (in thousands) December 31, 2021 Fixed maturity securities: State and municipal $ 93,313 $ (2,162) $ 1,150 $ (50) $ 94,463 $ (2,212) Residential mortgage-backed 140,386 (2,337) 147 (2) 140,533 (2,339) Corporate 179,078 (4,232) 18,635 (1,482) 197,713 (5,714) Commercial mortgage and asset-backed 159,289 (1,695) 1,229 (5) 160,518 (1,700) U.S. Treasury securities and obligations guaranteed by the U.S. government 24,378 (592) — — 24,378 (592) Total fixed maturity securities, available-for-sale $ 596,444 $ (11,018) $ 21,161 $ (1,539) $ 617,605 $ (12,557) December 31, 2020 Fixed maturity securities: State and municipal $ 7,193 $ (39) $ — $ — $ 7,193 $ (39) Residential mortgage-backed 3,649 (40) — — 3,649 (40) Corporate 28,607 (421) — — 28,607 (421) Commercial mortgage and asset-backed 18,427 (447) 38,802 (356) 57,229 (803) U.S. Treasury securities and obligations guaranteed by the U.S. government 2,291 (1) — — 2,291 (1) Total fixed maturity securities, available-for-sale $ 60,167 $ (948) $ 38,802 $ (356) $ 98,969 $ (1,304) |
Schedule of Major Categories of the Company' s Net Investment Income | Major categories of the Company’s net investment income are summarized as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Fixed maturity securities $ 42,968 $ 45,070 $ 39,875 Bank loan participations 10,571 12,150 19,772 Equity securities 4,883 4,800 5,262 Other invested assets 2,200 9,181 6,254 Cash, cash equivalents, restricted cash equivalents, and short-term investments 260 6,619 9,210 Gross investment income 60,882 77,820 80,373 Investment expense (4,017) (4,452) (4,721) Net investment income $ 56,865 $ 73,368 $ 75,652 |
Schedule of Summary of Realized Gains and Losses | The Company’s net realized and unrealized gains and losses on investments are summarized as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Fixed maturity securities: Gross realized gains $ 4,988 $ 1,098 $ 1,575 Gross realized losses (64) (53) (494) 4,924 1,045 1,081 Equity securities: Gross realized gains 284 — 11 Gross realized losses (827) (1,441) (232) Changes in fair values of equity securities 5,350 (215) 6,257 4,807 (1,656) 6,036 Bank loan participations: Gross realized gains 555 554 846 Gross realized losses (1,388) (17,286) (10,902) Changes in fair values of bank loan participations 6,661 1,318 — 5,828 (15,414) (10,056) Short-term investments and other: Gross realized gains 75 77 21 Gross realized losses (150) (2) (1) Changes in fair values of short-term investments and other 80 (80) — 5 (5) 20 Total $ 15,564 $ (16,030) $ (2,919) |
Schedule of Available-for-Sale Gross Unrealized Gains or Losses | The Company’s net realized and unrealized gains and losses on investments are summarized as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Fixed maturity securities: Gross realized gains $ 4,988 $ 1,098 $ 1,575 Gross realized losses (64) (53) (494) 4,924 1,045 1,081 Equity securities: Gross realized gains 284 — 11 Gross realized losses (827) (1,441) (232) Changes in fair values of equity securities 5,350 (215) 6,257 4,807 (1,656) 6,036 Bank loan participations: Gross realized gains 555 554 846 Gross realized losses (1,388) (17,286) (10,902) Changes in fair values of bank loan participations 6,661 1,318 — 5,828 (15,414) (10,056) Short-term investments and other: Gross realized gains 75 77 21 Gross realized losses (150) (2) (1) Changes in fair values of short-term investments and other 80 (80) — 5 (5) 20 Total $ 15,564 $ (16,030) $ (2,919) |
Schedule of Other Invested Assets | The Company invests selectively in private debt and equity opportunities. These investments, which together comprise the Company’s other invested assets, are primarily focused in renewable energy, limited partnerships, and bank holding companies. Carrying Value Investment Income December 31, Year Ended December 31, 2021 2020 2021 2020 2019 (in thousands) Renewable energy LLCs (a) Excess and Surplus Lines $ 24,211 $ — $ (625) $ — $ — Corporate & Other 2,709 30,145 (812) 2,016 2,181 26,920 30,145 (1,437) 2,016 2,181 Renewable energy notes receivable ( b) Excess and Surplus Lines 2,329 — 417 — — Corporate & Other 2,911 — 522 5,630 1,313 5,240 — 939 5,630 1,313 Limited partnerships (c) Excess and Surplus Lines 13,098 4,096 1,417 272 2,090 Corporate & Other 2,150 7,807 938 920 327 15,248 11,903 2,355 1,192 2,417 Bank holding companies (d) Excess and Surplus Lines 4,500 — 200 — — Corporate & Other — 4,500 143 343 343 4,500 4,500 343 343 343 Total other invested assets Excess and Surplus Lines 44,138 4,096 1,409 272 2,090 Corporate & Other 7,770 42,452 791 8,909 4,164 $ 51,908 $ 46,548 $ 2,200 $ 9,181 $ 6,254 (a) The Company’s Excess and Surplus Lines and Corporate and Other segments own equity interests ranging from 2.6% to 32.6% in various LLCs whose principal objective is capital appreciation and income generation from owning and operating renewable energy production facilities (wind and solar). The LLCs are managed by an entity for which two of our former directors serve as officers, and the Company’s Non-Executive Chairman has invested in certain of these LLCs. The equity method is used to account for the Company’s LLC investments. Income for the LLCs primarily reflects adjustments to the carrying values of investments in renewable energy projects to their determined fair values. The fair value adjustments are included in revenues for the LLCs. Expenses for the LLCs are not significant and are comprised of administrative and interest expenses. During the year ended December 31, 2021, the Company transferred $26.3 million of its investments in the LLCs from the Corporate and Other segment to the Excess and Surplus Lines segment. The Company received cash distributions from these investments totaling $1.8 million and $3.1 million for the years ended December 31, 2021 and 2020, respectively. (b) The Company's Excess and Surplus Lines and Corporate and Other segments have invested in notes receivable for renewable energy projects. At December 31, 2021, the Company held two notes issued by an entity for which two of our former directors serve as officers . Interest on the notes, which mature in 2025, is fixed at 12%. During the year ended December 31, 2021, the Company received principal repayments of $1.7 million and $2.1 million on the notes receivable in the Company's Excess and Surplus Lines segment and Corporate and Other segment, respectively. During the year ended December 31, 2020 , the Company received the total principal balance of $8.8 million plus a $5.3 million gain at maturity on an earlier note receivable for renewable energy projects. Interest on that note was fixed at 15%. (c) The Company owns investments in limited partnerships that invest in concentrated portfolios including publicly-traded small cap equities, loans of middle market private equity sponsored companies, private equity general partnership interests, commercial mortgage-backed securities, and tranches of distressed home loans. Income from the partnerships is recognized under the equity method of accounting. During the year ended December 31, 2021, the Company transferred $5.1 million of its investments in the limited partnerships from the Corporate and Other segment to the Excess and Surplus Lines segment. At December 31, 2021, the Company’s Excess and Surplus Lines segment has outstanding commitments to invest another $5.3 million in these limited partnerships. (d) The Company's Excess and Surplus Lines segment holds $4.5 million of subordinated notes issued by a bank holding company for which the Company’s Non-Executive Chairman was previously the Lead Independent Director and an investor and for which one of the Company’s directors is also an investor (the "Bank Holding Company"). During the year ended December 31, 2021, the Company transferred ownership of the subordinated notes from the Corporate and Other segment to the Excess and Surplus Lines segment. Interest on the notes, which mature in 2023, is fixed at 7.6% per annum. |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Schedule of Deferred Policy Acquisition Costs | An analysis of deferred policy acquisition costs is as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Balance at beginning of period $ 62,953 $ 62,006 $ 54,450 Policy acquisition costs deferred: Commissions 51,466 51,306 67,303 Underwriting and other issue expenses 23,770 25,219 24,146 75,236 76,525 91,449 Amortization of policy acquisition costs (69,663) (75,578) (83,893) Net change 5,573 947 7,556 Balance at end of period $ 68,526 $ 62,953 $ 62,006 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Gross Carrying Amounts and Accumulated Amortization for Finite-Lived Intangible Assets | The gross carrying amounts and accumulated amortization for each major specifically identifiable intangible asset class were as follows: December 31, 2021 2020 Weighted- Gross Accumulated Gross Accumulated (in thousands) Trademarks Indefinite $ 22,200 $ — $ 22,200 $ — Insurance licenses and authorities Indefinite 8,964 — 8,964 — Identifiable intangibles not subject to amortization 31,164 — 31,164 — Broker relationships 24.6 11,611 6,736 11,611 6,373 Identifiable intangible assets subject to amortization 11,611 6,736 11,611 6,373 $ 42,775 $ 6,736 $ 42,775 $ 6,373 |
Schedule of Gross Carrying Amounts for Indefinite-Lived Intangible Assets | The gross carrying amounts and accumulated amortization for each major specifically identifiable intangible asset class were as follows: December 31, 2021 2020 Weighted- Gross Accumulated Gross Accumulated (in thousands) Trademarks Indefinite $ 22,200 $ — $ 22,200 $ — Insurance licenses and authorities Indefinite 8,964 — 8,964 — Identifiable intangibles not subject to amortization 31,164 — 31,164 — Broker relationships 24.6 11,611 6,736 11,611 6,373 Identifiable intangible assets subject to amortization 11,611 6,736 11,611 6,373 $ 42,775 $ 6,736 $ 42,775 $ 6,373 |
Schedule of Future Estimated Amortization | Future estimated amortization of specifically identifiable intangible assets as of December 31, 2021 is as follows ( in thousands) : 2022 $ 363 2023 363 2024 363 2025 363 2026 363 Thereafter 3,059 Total $ 4,874 |
Schedule of Acquired Indefinite-Lived Intangible Assets | The table below summarizes the changes in the net carrying values of intangible assets by segment for 2021: December 31, 2020 December 31, 2021 Net Carrying Amortization Impairment Net Carrying (in thousands) Excess and Surplus Lines Trademarks $ 19,700 $ — $ — $ 19,700 Insurance licenses and authorities 4,900 — — 4,900 Broker relationships 5,237 (363) — 4,874 29,837 (363) — 29,474 Specialty Admitted Insurance Trademarks 2,500 — — 2,500 Insurance licenses and authorities 4,065 — — 4,065 Broker relationships — — — — 6,565 — — 6,565 Total identifiable intangible assets $ 36,402 $ (363) $ — $ 36,039 The table below summarizes the changes in the net carrying values of intangible assets by segment for 2020: December 31, 2019 December 31, 2020 Net Carrying Amortization Impairment Net Carrying (in thousands) Excess and Surplus Lines Trademarks $ 19,700 $ — $ — $ 19,700 Insurance licenses and authorities 4,900 — — 4,900 Broker relationships 5,603 (366) — 5,237 30,203 (366) — 29,837 Specialty Admitted Insurance Trademarks 2,500 — — 2,500 Insurance licenses and authorities 4,065 — — 4,065 Broker relationships 172 (172) — — 6,737 (172) — 6,565 Total identifiable intangible assets $ 36,940 $ (538) $ — $ 36,402 |
Schedule of Acquired Finite-Lived Intangible Assets | The table below summarizes the changes in the net carrying values of intangible assets by segment for 2021: December 31, 2020 December 31, 2021 Net Carrying Amortization Impairment Net Carrying (in thousands) Excess and Surplus Lines Trademarks $ 19,700 $ — $ — $ 19,700 Insurance licenses and authorities 4,900 — — 4,900 Broker relationships 5,237 (363) — 4,874 29,837 (363) — 29,474 Specialty Admitted Insurance Trademarks 2,500 — — 2,500 Insurance licenses and authorities 4,065 — — 4,065 Broker relationships — — — — 6,565 — — 6,565 Total identifiable intangible assets $ 36,402 $ (363) $ — $ 36,039 The table below summarizes the changes in the net carrying values of intangible assets by segment for 2020: December 31, 2019 December 31, 2020 Net Carrying Amortization Impairment Net Carrying (in thousands) Excess and Surplus Lines Trademarks $ 19,700 $ — $ — $ 19,700 Insurance licenses and authorities 4,900 — — 4,900 Broker relationships 5,603 (366) — 5,237 30,203 (366) — 29,837 Specialty Admitted Insurance Trademarks 2,500 — — 2,500 Insurance licenses and authorities 4,065 — — 4,065 Broker relationships 172 (172) — — 6,737 (172) — 6,565 Total identifiable intangible assets $ 36,940 $ (538) $ — $ 36,402 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net of accumulated depreciation, is included in "other assets" on the consolidated balance sheets and consists of the following: December 31, 2021 2020 (in thousands) Electronic data processing hardware and software $ 2,492 $ 3,238 Furniture and equipment 2,221 2,025 Property and equipment, cost basis 4,713 5,263 Accumulated depreciation (3,932) (3,975) Property and equipment, net $ 781 $ 1,288 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of Lease Maturities | The table below summarizes maturities of the Company’s operating lease liabilities as of December 31, 2021, which reconciles to total lease liabilities included in other liabilities on the Company’s consolidated balance sheets: Years ending December 31, (in thousands) 2022 $ 4,146 2023 3,935 2024 2,625 2025 2,556 2026 407 Thereafter 90 Total lease payments 13,759 Less imputed interest (967) Total operating lease liabilities $ 12,792 |
Reserve for Losses and Loss A_2
Reserve for Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Schedule of Reconciliation of Beginning and Ending Reserve Balances for Losses and Loss Adjustment Expenses | Year Ended December 31, 2021 2020 2019 (in thousands) Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period $ 1,386,061 $ 1,377,461 $ 1,194,088 Add: Incurred losses and loss adjustment expenses net of reinsurance: Current year 466,574 386,341 603,094 Prior years 325,778 92,204 69,008 Total incurred losses and loss and adjustment expenses 792,352 478,545 672,102 Deduct: Loss and loss adjustment expense payments net of reinsurance: Current year 35,006 31,952 75,249 Prior years 487,741 437,993 413,480 Total loss and loss adjustment expense payments 522,747 469,945 488,729 Deduct: Loss reserves ceded in LPT Transaction 256,452 — — Reserve for losses and loss adjustment expenses net of reinsurance recoverables at end of period 1,399,214 1,386,061 1,377,461 Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period 1,349,259 806,019 668,045 Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period $ 2,748,473 $ 2,192,080 $ 2,045,506 |
Schedule of Incurred and Cumulative Paid Losses and Loss Adjustment Expenses, Net of Reinsurance | Excess and Surplus Lines — Excluding Commercial Auto Incurred losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 $ 97,908 $ 98,672 $ 97,829 $ 96,497 $ 97,306 $ 99,619 $ 101,271 $ 103,061 $ 106,118 $ 108,336 2013 96,729 96,064 85,433 81,009 82,830 83,855 82,732 82,517 83,594 2014 114,942 104,092 90,267 82,232 84,074 88,904 90,191 90,944 2015 126,443 113,417 104,847 102,434 103,688 110,466 114,398 2016 138,507 125,093 126,050 126,971 125,097 132,235 2017 144,349 131,897 132,136 124,265 128,674 2018 167,004 158,458 146,633 150,687 2019 214,653 194,759 189,671 2020 239,897 211,732 2021 304,435 Total $ 1,514,706 Cumulative paid losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 $ 6,944 $ 33,757 $ 49,604 $ 63,216 $ 74,869 $ 82,545 $ 88,812 $ 94,588 $ 99,628 $ 101,669 2013 3,867 14,509 30,382 44,421 59,641 66,553 71,035 74,635 76,295 2014 3,412 16,969 28,212 43,891 58,774 71,549 76,523 79,980 2015 4,048 17,164 34,801 55,911 73,455 87,344 94,494 2016 5,180 22,852 46,045 70,105 90,166 102,072 2017 5,290 22,956 42,764 64,924 81,303 2018 6,000 26,160 50,679 76,494 2019 8,235 31,346 62,227 2020 8,642 34,561 2021 11,693 Total $ 720,788 All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance (44 claims outstanding) $ 6,714 Total outstanding losses and loss adjustment expenses, net of reinsurance $ 800,632 Excess and Surplus Lines — Commercial Auto Incurred losses and adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 $ 1,255 $ 1,300 $ 1,451 $ 1,351 $ 1,301 $ 1,277 $ 1,277 $ 1,277 $ 1,277 2014 20,487 14,071 17,233 18,953 19,779 18,303 19,196 20,013 2015 30,109 33,113 35,149 36,139 36,636 37,839 38,046 2016 74,340 109,286 126,791 147,122 157,712 164,399 2017 207,355 208,743 272,421 319,472 355,713 2018 255,881 230,220 283,408 349,067 2019 262,306 240,773 339,771 2020 19,133 10,899 2021 21,154 Total $ 1,300,339 Cumulative paid losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 $ 60 $ 1,182 $ 1,285 $ 1,291 $ 1,275 $ 1,275 $ 1,275 $ 1,275 $ 1,275 2014 6,166 8,645 12,679 16,359 18,678 17,745 18,301 19,163 2015 8,356 15,234 24,282 31,592 34,819 35,983 36,710 2016 18,295 54,054 89,381 125,108 141,545 152,030 2017 41,467 107,377 192,961 252,169 309,860 2018 45,136 119,099 184,686 257,346 2019 44,225 107,182 192,982 2020 628 2,854 2021 2,810 Total $ 975,030 Total outstanding losses and loss adjustment expenses, net of reinsurance before Rasier LPT $ 325,309 Reinsurance recoverable for Rasier LPT $ 256,452 Total outstanding losses and loss adjustment expenses, net of reinsurance $ 68,857 Specialty Admitted — Individual Risk Workers’ Compensation Incurred losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 $ 32,116 $ 32,420 $ 31,490 $ 29,689 $ 28,255 $ 28,174 $ 28,186 $ 28,186 $ 27,741 $ 27,386 2013 12,525 13,668 12,786 11,578 10,907 10,909 10,909 10,598 10,573 2014 16,638 16,652 14,620 13,890 12,704 12,704 12,573 12,685 2015 20,938 21,274 19,741 18,376 17,626 16,492 16,468 2016 21,678 20,299 18,050 15,800 14,050 13,069 2017 24,869 22,071 19,779 18,810 16,606 2018 16,432 16,288 16,038 14,200 2019 20,253 21,056 20,631 2020 20,137 22,240 2021 14,519 Total $ 168,377 Cumulative paid losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 $ 9,222 $ 20,308 $ 24,755 $ 26,435 $ 26,897 $ 26,932 $ 26,963 $ 26,994 $ 27,128 $ 27,140 2013 4,487 8,723 9,846 10,246 10,263 10,309 10,337 10,335 10,336 2014 4,633 10,648 12,041 12,236 12,282 12,282 12,276 12,287 2015 6,604 13,285 15,118 15,889 15,901 16,068 16,069 2016 4,664 10,227 12,135 12,432 12,481 12,483 2017 6,546 12,782 14,285 15,195 15,210 2018 4,497 9,034 11,412 11,746 2019 5,473 13,776 16,254 2020 7,394 14,668 2021 5,874 Total $ 142,067 All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance (6 claims outstanding) $ 927 Outstanding losses and loss adjustment expenses assumed from involuntary workers’ compensation pools $ 3,941 Total outstanding losses and loss adjustment expenses, net of reinsurance $ 31,178 Specialty Admitted — Fronting and Programs Incurred losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 $ 104 $ 80 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 2014 3,460 3,468 3,818 3,425 3,228 3,083 3,081 3,068 2015 7,136 9,632 9,358 8,974 8,384 8,444 8,436 2016 11,542 15,670 14,682 15,522 14,468 15,090 2017 21,229 24,271 25,201 24,728 25,097 2018 21,758 20,677 19,822 20,158 2019 18,832 19,020 19,991 2020 25,433 28,131 2021 39,999 Total $ 160,022 Cumulative paid losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 $ 28 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 2014 883 1,687 2,369 2,728 2,854 2,916 2,917 2,926 2015 2,058 4,666 6,165 6,919 7,329 7,654 7,728 2016 1,894 5,123 6,888 10,732 10,896 11,711 2017 1,223 6,682 13,065 15,854 18,219 2018 885 4,972 10,495 12,631 2019 4,358 5,125 9,958 2020 5,375 15,678 2021 8,347 Total $ 87,250 All outstanding losses and loss adjustment expenses, net of reinsurance $ 72,772 Outstanding losses and loss adjustment expenses, assumed from involuntary pools $ 781 Total outstanding losses and loss adjustment expenses, net of reinsurance $ 73,553 Casualty Reinsurance Incurred losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 $ 148,251 $ 132,388 $ 131,281 $ 135,594 $ 136,813 $ 139,978 $ 143,305 $ 146,045 $ 147,413 $ 148,103 2013 133,230 130,361 131,352 134,446 137,801 143,124 146,760 149,682 153,622 2014 118,881 115,927 114,636 116,981 121,200 126,160 130,822 139,208 2015 119,157 108,870 108,699 109,117 114,517 120,185 133,790 2016 112,759 105,533 103,544 108,222 114,979 132,058 2017 134,628 128,472 129,800 138,831 176,828 2018 121,529 119,098 125,715 163,957 2019 86,022 85,549 100,895 2020 80,374 81,800 2021 82,610 Total $ 1,312,871 Cumulative paid losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 $ 73,124 $ 81,859 $ 97,215 $ 113,943 $ 121,026 $ 128,567 $ 133,606 $ 137,430 $ 139,719 $ 141,563 2013 59,756 75,094 93,902 108,396 119,256 127,732 134,644 139,250 142,824 2014 41,421 58,601 76,302 89,899 101,366 110,374 117,971 125,444 2015 40,021 53,986 68,002 80,208 90,661 100,548 110,692 2016 36,268 50,905 65,409 78,145 90,356 104,115 2017 47,739 72,891 90,117 106,942 126,747 2018 30,903 50,274 69,123 90,054 2019 12,646 25,453 37,488 2020 5,589 15,270 2021 2,082 Total $ 896,279 All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance $ 8,402 Total outstanding losses and loss adjustment expenses, net of reinsurance $ 424,994 |
Schedule of Reserve for Losses and Loss Adjustment Expenses | The reconciliation of the net incurred and paid claims development tables to the reserve for losses and loss adjustment expenses in the consolidated balance sheet at December 31, 2021 is as follows (in thousands): E&S – excluding commercial auto $ 800,632 E&S – commercial auto 68,857 Specialty Admitted – individual risk workers’ compensation 31,178 Specialty Admitted – fronting and programs 73,553 Casualty Reinsurance 424,994 Net reserve for losses and loss adjustment expenses 1,399,214 Reinsurance recoverables on unpaid losses (gross of $631,000 allowance for credit losses on reinsurance recoverables) 1,349,259 Gross reserve for losses and loss adjustment expenses $ 2,748,473 |
Schedule of Average Annual Percentage Payouts of Incurred Claims by Age, Net of Reinsurance | The following is unaudited supplementary information about average annual percentage payouts of incurred claims by age, net of reinsurance, as of December 31, 2021. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 E&S – excluding commercial auto 8.7 % 15.1 % 17.1 % 18.2 % 14.7 % 8.4 % 5.3 % 4.1 % 2.3 % 1.8 % E&S – commercial auto 17.7 % 35.0 % 17.9 % 13.9 % 8.4 % 3.2 % 1.1 % 0.6 % 2.1 % Specialty Admitted – individual risk workers’ compensation 27.8 % 31.3 % 15.2 % 8.7 % 6.5 % 3.4 % 2.2 % 1.1 % 1.2 % 0.9 % Specialty Admitted – fronting and programs 17.8 % 22.3 % 21.2 % 14.1 % 9.3 % 6.0 % 4.7 % 2.3 % 2.3 % Casualty Reinsurance 13.2 % 9.7 % 7.7 % 7.0 % 7.5 % 7.4 % 7.4 % 7.0 % 6.8 % 6.1 % |
Schedule of Incurred But Not Reported Liabilities and Claims Frequency | The table below provides information on IBNR liabilities and claims frequency for: (1) the Excess and Surplus Lines segment split between commercial auto and all non commercial auto, and (2) the Specialty Admitted Insurance segment split between individual risk workers’ compensation and fronting and programs: Excess and Surplus Lines — Excluding Commercial Auto Accident Year Incurred Losses IBNR Cumulative # of ($ in thousands) 2012 $ 108,336 $ 1,449 1,868 2013 83,594 2,624 2,510 2014 90,944 4,040 2,225 2015 114,398 5,543 2,636 2016 132,235 10,541 3,102 2017 128,674 14,307 3,197 2018 150,687 31,961 4,465 2019 189,671 77,244 5,417 2020 211,732 128,364 4,442 2021 304,435 252,419 2,964 Excess and Surplus Lines — Commercial Auto Accident Year Incurred Losses IBNR Cumulative # of ($ in thousands) 2013 $ 1,277 $ 2 54 2014 20,013 266 7,764 2015 38,046 741 41,770 2016 164,399 4,895 89,117 2017 355,713 9,690 134,150 2018 349,067 22,594 97,334 2019 339,771 54,011 71,428 2020 10,899 3,442 594 2021 21,154 14,481 699 Specialty Admitted - Individual Risk Workers’ Compensation Accident Year Incurred Losses IBNR Cumulative # of ($ in thousands) 2012 $ 27,386 $ 247 1,323 2013 10,573 237 540 2014 12,685 319 851 2015 16,468 391 975 2016 13,069 585 836 2017 16,606 1,283 1,093 2018 14,200 2,253 1,238 2019 20,631 3,057 1,552 2020 22,240 3,890 1,367 2021 14,519 2,845 1,238 Specialty Admitted — Fronting and Programs Accident Year Incurred Losses IBNR Cumulative # of ($ in thousands) 2013 $ 52 $ — 22 2014 3,068 134 858 2015 8,436 502 1,361 2016 15,090 2,241 2,816 2017 25,097 4,630 6,788 2018 20,158 4,000 7,360 2019 19,991 5,316 8,084 2020 28,131 5,843 8,680 2021 39,999 22,373 8,253 The table below provides information on IBNR liabilities for the Casualty Reinsurance segment: Accident Year Incurred Losses IBNR ($ in thousands) 2012 $ 148,103 $ 906 2013 153,622 2,566 2014 139,208 5,712 2015 133,790 9,817 2016 132,058 14,766 2017 176,828 33,463 2018 163,957 42,942 2019 100,895 49,980 2020 81,800 94,855 2021 82,610 24,450 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Schedule of Premiums Written, Premiums Earned, and Losses and Loss Adjustment Expenses | Premiums written, premiums earned, and losses and loss adjustment expenses incurred are summarized as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Written premiums: Direct $ 1,322,034 $ 1,103,994 $ 1,305,948 Assumed 185,265 153,006 164,787 Ceded (762,919) (609,226) (574,585) Net $ 744,380 $ 647,774 $ 896,150 Earned premiums: Direct $ 1,255,875 $ 1,005,138 $ 1,182,501 Assumed 154,243 145,867 150,330 Ceded (714,524) (544,199) (509,085) Net $ 695,594 $ 606,806 $ 823,746 Losses and loss adjustment expenses: Direct $ 1,117,673 $ 709,545 $ 953,548 Assumed 232,240 125,096 113,843 Ceded (557,561) (356,096) (395,289) Net $ 792,352 $ 478,545 $ 672,102 |
Junior Subordinated Debt (Table
Junior Subordinated Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subordinated Borrowings [Abstract] | |
Schedule of Junior Subordinated Debt | The following table summarizes the nature and terms of the junior subordinated debt and trust preferred securities outstanding at December 31, 2021 (including the Company’s repurchases of a portion of these trust preferred securities): James River James River James River James River Franklin ($ in thousands) Issue date May 26, December 15, June 15, December 11, January 10, Principal amount of Trust Preferred Securities $7,000 $15,000 $20,000 $54,000 $30,000 Principal amount of Junior Subordinated Debt $7,217 $15,464 $20,619 $55,670 $30,928 Carrying amount of Junior Subordinated Debt net of repurchases $7,217 $15,464 $20,619 $44,827 $15,928 Maturity date of Junior Subordinated Debt, unless accelerated earlier May 24, December 15, June 15, December 15, March 15, Trust common stock $217 $464 $619 $1,670 $928 Interest rate, per annum Three-Month LIBOR plus 4.0% Three-Month LIBOR plus 3.4% Three-Month LIBOR plus 3.0% Three-Month LIBOR plus 3.1% Three-Month LIBOR plus 4.0% |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Cash Dividends Declared | The Board of Directors declared the following cash dividends in 2021, 2020, and 2019: Date of Dividend per Payable to Shareholders Payment Date Total Amount (thousands) 2021 February 24, 2021 $0.30 March 15, 2021 March 31, 2021 $ 9,345 April 27, 2021 $0.30 June 14, 2021 June 30, 2021 $ 11,291 July 27, 2021 $0.30 September 13, 2021 September 30, 2021 $ 11,282 October 26, 2021 $0.30 December 13, 2021 December 31, 2021 $ 11,292 Total $1.20 $ 43,210 2020 February 19, 2020 $0.30 March 16, 2020 March 31, 2020 $ 9,269 April 28, 2020 $0.30 June 15, 2020 June 30, 2020 $ 9,271 July 28, 2020 $0.30 September 14, 2020 September 30, 2020 $ 9,292 October 27, 2020 $0.30 December 14, 2020 December 31, 2020 $ 9,305 Total $1.20 $ 37,137 2019 February 20, 2019 $0.30 March 11, 2019 March 29, 2019 $ 9,146 April 30, 2019 $0.30 June 10, 2019 June 28, 2019 $ 9,205 July 30, 2019 $0.30 September 16, 2019 September 30, 2019 $ 9,231 November 5, 2019 $0.30 December 16, 2019 December 31, 2019 $ 9,229 Total $1.20 $ 36,811 |
Equity Awards (Tables)
Equity Awards (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Summary of Option Activity | The following table summarizes the option activity: Year Ended December 31, 2021 2020 2019 Shares Weighted- Shares Weighted- Shares Weighted- Outstanding: Beginning of year 463,324 $ 32.25 643,851 $ 30.41 1,115,324 $ 29.02 Granted — $ — — $ — — $ — Exercised (126,798) $ 22.26 (180,527) $ 25.70 (459,415) $ 26.87 Forfeited (48,552) $ 40.42 — $ — (12,058) $ 36.84 End of year 287,974 $ 35.26 463,324 $ 32.25 643,851 $ 30.41 Exercisable, end of year 287,974 $ 35.26 463,324 $ 32.25 590,340 $ 29.34 |
Schedule of Summary of RSU Activity | The following table summarizes RSU activity: Year Ended December 31, 2021 2020 2019 Shares Weighted- Shares Weighted- Shares Weighted- Unvested, beginning of year 399,856 $ 43.59 340,368 $ 41.50 300,142 $ 39.22 Granted 161,971 $ 47.82 272,608 $ 45.11 197,078 $ 42.56 Vested (194,157) $ 42.74 (165,344) $ 41.49 (134,407) $ 37.99 Forfeited (75,535) $ 45.98 (47,776) $ 44.57 (22,445) $ 41.32 Unvested, end of year 292,135 $ 45.89 399,856 $ 43.59 340,368 $ 41.50 |
Schedule of Summary of Share Based Compensation Amount of Expense and Related Tax Benefit | The amount of expense and related tax benefit is summarized below: Year Ended December 31, 2021 2020 2019 (in thousands) Share based compensation expense $ 6,658 $ 7,625 $ 7,178 U.S. tax benefit on share based compensation expense $ 1,206 $ 1,001 $ 872 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of the Difference Between Federal Income Tax Provision (Benefit) and Expected Tax Provision (Benefit) | A reconciliation of the difference between the Company’s Federal income tax provision on U.S. income and the expected Federal tax provision on U.S. income using the weighted-average tax rate as well as a reconciliation to total tax expense is as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Federal income tax (benefit) expense at applicable statutory rates $ (18,750) $ 5,272 $ 14,843 Tax-exempt investment income (278) (260) (230) Dividends received deduction (298) (283) (307) Excess tax benefits on share based compensation (208) (679) (1,099) Provision to return and amended tax returns (3,945) — — Base Erosion and Anti-Abuse Tax — 2,843 — Other 233 17 99 Federal income tax (benefit) expense $ (23,246) $ 6,910 $ 13,306 U.S. state income tax expense 11 203 222 Total income tax (benefit) expense $ (23,235) $ 7,113 $ 13,528 |
Schedule of Deferred Tax Assets (Liabilities) at the Current Prevailing Corporate Income Tax Rate | The significant components of net deferred tax assets (liabilities) at the corporate income tax rate of 21% for the years ended December 31, 2021 and 2020 are summarized as follows: December 31, 2021 2020 (in thousands) Deferred tax assets: Accrued compensation expenses $ 2,604 $ 2,308 Reserve for losses and loss adjustment expenses 18,016 14,265 Unearned premiums 10,675 9,753 Share based compensation 1,541 1,427 Allowance for credit losses 2,516 2,130 Property and equipment 144 213 Net operating loss carryforward 15,221 — Other 7,053 4,810 Total deferred tax assets 57,770 34,906 Deferred tax liabilities: Intangible assets 7,289 7,324 Net unrealized gains 6,626 12,201 Deferred policy acquisition costs 4,494 4,786 Equity method investments 10,257 8,839 Other 2,674 2,861 Total deferred tax liabilities 31,340 36,011 Net deferred tax assets (liabilities) $ 26,430 $ (1,105) |
Other Operating Expenses and _2
Other Operating Expenses and Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Operating Expenses And Other Expenses [Abstract] | |
Schedule of Other Operating Expenses | Other operating expenses consist of the following: Year Ended December 31, 2021 2020 2019 (in thousands) Amortization of policy acquisition costs $ 69,663 $ 75,578 $ 83,893 Other underwriting expenses of the insurance segments 67,420 60,502 59,351 Other operating expenses of the Corporate and Other segment 27,609 29,418 27,664 Total $ 164,692 $ 165,498 $ 170,908 |
Other Comprehensive (Loss) In_2
Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Components of Comprehensive Income (Loss) | The following table summarizes the components of other comprehensive (loss) income: Year Ended December 31, 2021 2020 2019 (in thousands) Unrealized (losses) gains arising during the period, before U.S. income taxes $ (54,132) $ 58,704 $ 51,381 U.S. income taxes 6,189 (6,967) (3,510) Unrealized (losses) gains arising during the period, net of U.S. income taxes (47,943) 51,737 47,871 Less reclassification adjustment: Net realized investment gains 4,924 1,045 1,081 U.S. income taxes (946) (93) (152) Reclassification adjustment for investment gains realized in net income 3,978 952 929 Other comprehensive (loss) income $ (51,921) $ 50,785 $ 46,942 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Summary of Company's Segment Results | Segment results are reported prior to the effects of the intercompany reinsurance agreements between the Company’s insurance and reinsurance subsidiaries. All gross written premiums and net earned premiums for all periods presented were generated from policies issued to U.S. based insureds. Excess and Specialty Casualty Corporate Total (in thousands) As of and for the Year Ended December 31, 2021 Gross written premiums $ 833,657 $ 491,561 $ 182,081 $ — $ 1,507,299 Net earned premiums 486,000 75,371 134,223 — 695,594 Segment revenues 508,829 83,855 179,354 842 772,880 Net investment income 13,811 3,044 39,445 565 56,865 Interest expense — — — 8,922 8,922 Underwriting (loss) profit of operating segments (121,478) 9,667 (117,526) — (229,337) Segment goodwill 181,831 — — — 181,831 Segment assets 1,997,192 1,062,125 1,857,462 31,771 4,948,550 As of and for the Year Ended December 31, 2020 Gross written premiums $ 699,143 $ 408,691 $ 149,166 $ — $ 1,257,000 Net earned premiums 415,168 57,505 134,133 — 606,806 Segment revenues 429,918 62,790 166,837 9,144 668,689 Net investment income 18,664 3,392 42,554 8,758 73,368 Interest expense — — — 10,033 10,033 Underwriting profit (loss) of operating segments 9,752 4,185 (18,364) — (4,427) Segment goodwill 181,831 — — — 181,831 Segment assets 2,208,344 907,604 1,899,328 47,796 5,063,072 As of and for the Year Ended December 31, 2019 Gross written premiums $ 922,320 $ 387,642 $ 160,773 $ — $ 1,470,735 Net earned premiums 625,528 54,338 143,880 — 823,746 Segment revenues 657,501 61,241 183,700 4,683 907,125 Net investment income 21,358 3,802 46,325 4,167 75,652 Interest expense — — — 10,596 10,596 Underwriting profit (loss) of operating segments 19,157 5,913 (7,161) — 17,909 Segment goodwill 181,831 — — — 181,831 Segment assets 2,481,934 786,433 1,699,473 56,565 5,024,405 |
Schedule of Underwriting Profit of Operating Segments by Individual Segment and Reconciliation to Consolidated Income Before Taxes | The following table reconciles the underwriting (loss) profit of operating segments by individual segment to income before income taxes: Year Ended December 31, 2021 2020 2019 (in thousands) Underwriting (loss) profit of the operating segments: Excess and Surplus Lines $ (121,478) $ 9,752 $ 19,157 Specialty Admitted Insurance 9,667 4,185 5,913 Casualty Reinsurance (117,526) (18,364) (7,161) Total underwriting (loss) profit of operating segments (229,337) (4,427) 17,909 Other operating expenses of the Corporate and Other segment (27,609) (29,418) (27,664) Underwriting loss (256,946) (33,845) (9,755) Net investment income 56,865 73,368 75,652 Net realized and unrealized gains (losses) on investments 15,564 (16,030) (2,919) Other income 353 1,153 1,137 Other expenses (2,585) (2,138) (1,055) Interest expense (8,922) (10,033) (10,596) Amortization of intangible assets (363) (538) (597) (Loss) income before income taxes $ (196,034) $ 11,937 $ 51,867 |
Schedule of Gross Written Premiums by Segment and Underwriting Division | Gross written premiums by segment and underwriting division are presented below: Year Ended December 31, 2021 2020 2019 (in thousands) Excess Casualty $ 285,082 $ 213,037 $ 118,954 General Casualty 140,608 125,433 115,832 Manufacturers and Contractors 139,720 122,880 105,096 Excess Property 47,241 37,332 31,606 Energy 46,216 51,109 45,442 Life Sciences 35,935 35,163 24,462 Commercial Auto 34,630 30,029 405,565 Allied Health 35,192 26,918 26,713 Small Business 32,593 24,790 19,725 Environmental 17,050 17,753 16,539 Professional Liability 8,104 6,881 6,441 Sports and Entertainment 9,442 6,118 4,212 Medical Professionals 1,844 1,700 1,733 Total Excess and Surplus Lines segment 833,657 699,143 922,320 Specialty Admitted Insurance segment 491,561 408,691 387,642 Casualty Reinsurance segment 182,081 149,166 160,773 Total $ 1,507,299 $ 1,257,000 $ 1,470,735 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | Assets measured at fair value on a recurring basis as of December 31, 2021 are summarized below: Fair Value Measurements Using Quoted Prices Significant Significant Total (in thousands) Fixed maturity securities, available-for-sale: State and municipal $ — $ 333,717 $ — $ 333,717 Residential mortgage-backed — 246,631 — 246,631 Corporate — 732,335 — 732,335 Commercial mortgage and asset-backed — 304,488 304,488 U.S. Treasury securities and obligations guaranteed by the U.S. government 59,988 402 — 60,390 Total fixed maturity securities, available-for-sale $ 59,988 $ 1,617,573 $ — $ 1,677,561 Equity securities: Preferred stock $ — $ 63,612 $ — $ 63,612 Common stock 41,244 3,452 102 44,798 Total equity securities $ 41,244 $ 67,064 $ 102 $ 108,410 Bank loan participations $ — $ 156,043 $ — $ 156,043 Short-term investments $ — $ 136,563 $ — $ 136,563 Assets measured at fair value on a recurring basis as of December 31, 2020 are summarized below: Fair Value Measurements Using Quoted Prices Significant Significant Total (in thousands) Fixed maturity securities, available-for-sale: State and municipal $ — $ 296,405 $ — $ 296,405 Residential mortgage-backed — 293,848 — 293,848 Corporate — 766,822 — 766,822 Commercial mortgage and asset-backed — 326,719 — 326,719 U.S. Treasury securities and obligations guaranteed by the U.S. government 99,384 464 — 99,848 Total fixed maturity securities, available-for-sale $ 99,384 $ 1,684,258 $ — $ 1,783,642 Equity securities: Preferred stock $ — $ 67,495 $ — $ 67,495 Common stock 15,793 5,015 672 21,480 Total equity securities $ 15,793 $ 72,510 $ 672 $ 88,975 Bank loan participations $ — $ 147,296 $ 308 $ 147,604 Short-term investments $ — $ 130,289 $ — $ 130,289 |
Schedule of Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | A reconciliation of the beginning and ending balances of available-for-sale fixed maturity securities, equity securities, and bank loan participations (following the Company's election of the fair value option in accounting for bank loan participations effective January 1, 2020) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is shown below: Year Ended December 31, 2021 2020 2019 (in thousands) Beginning balance $ 980 $ 43 $ 4,442 Transfers in to Level 3 8 358 3,010 Transfers out of Level 3 (6) (767) (7,238) Purchases — 1,417 — Sales (426) — — Maturities, calls and paydowns (379) (17) — Amortization of discount — 2 — Total gains or losses (realized/unrealized): Included in earnings (75) (56) (171) Included in other comprehensive income — — — Ending balance $ 102 $ 980 $ 43 |
Schedule of Carrying Value and Fair Value | The carrying values and fair values of financial instruments are summarized below: December 31, 2021 2020 Carrying Fair Carrying Fair (in thousands) Assets Fixed maturity securities, available-for-sale $ 1,677,561 $ 1,677,561 $ 1,783,642 $ 1,783,642 Equity securities 108,410 108,410 88,975 88,975 Bank loan participations 156,043 156,043 147,604 147,604 Cash and cash equivalents 190,123 190,123 162,260 162,260 Restricted cash equivalents 102,005 102,005 859,920 859,920 Short-term investments 136,563 136,563 130,289 130,289 Other invested assets – notes receivable 4,500 4,834 4,500 5,302 Liabilities Senior debt 262,300 252,213 262,300 250,953 Junior subordinated debt 104,055 106,635 104,055 110,612 |
Statutory Matters (Tables)
Statutory Matters (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Statutory Matters [Abstract] | |
Schedule of Statutory Accounting | Combined net income, statutory capital and surplus and minimum required statutory capital and surplus, as determined in accordance with statutory accounting practices, for the U.S. insurance subsidiaries as of December 31, 2021, 2020, and 2019 and for the years then ended are summarized as follows: 2021 2020 2019 (in thousands) Statutory net (loss) income $ (3,847) $ (710) $ 3,586 Statutory capital and surplus 325,368 286,449 266,715 Minimum required statutory capital and surplus 111,031 100,170 111,208 |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)insurance_companyreinsurance_companyshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)shares | |
Accounting Policies [Line Items] | |||
Premiums receivable and agents’ balances, net | $ 393,967 | $ 369,577 | |
Allowance for credit losses | 16,700 | 8,300 | |
Credit loss expense | 9,400 | 3,300 | $ 2,500 |
Amount of credit loss expense that is reinsured | 7,100 | ||
Allowance for credit losses written off | 1,100 | 660 | 812 |
Allowance for credit losses on reinsurance recoverables | 631 | 335 | |
Fee income | 4,500 | 3,400 | $ 9,500 |
Investment in variable interest entities | $ 26,900 | 30,100 | |
Common share equivalents excluded from calculations of diluted earnings per share | shares | 175,360 | 9,735 | |
Minimum | |||
Accounting Policies [Line Items] | |||
Intangible assets, useful life (in years) | 7 years | ||
Property and equipment, estimated useful lives (in years) | 3 years | ||
Maximum | |||
Accounting Policies [Line Items] | |||
Intangible assets, useful life (in years) | 27 years 6 months | ||
Property and equipment, estimated useful lives (in years) | 10 years | ||
Receivables greater than 90 days past due | |||
Accounting Policies [Line Items] | |||
Premiums receivable and agents’ balances, net | $ 7,500 | $ 6,900 | |
United States | |||
Accounting Policies [Line Items] | |||
Number of insurance companies | insurance_company | 5 | ||
Bermuda | |||
Accounting Policies [Line Items] | |||
Number of insurance companies | reinsurance_company | 2 |
Accounting Policies - Schedule
Accounting Policies - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Net (Loss) Income (Numerator) | $ (172,799) | $ 4,824 | $ 38,339 |
Weighted-Average Common Shares (Denominator) | |||
Basic (in shares) | 34,956,957 | 30,552,210 | 30,275,184 |
Common share equivalents (in shares) | 0 | 332,206 | 398,740 |
Diluted (in shares) | 34,956,957 | 30,884,416 | 30,673,924 |
(Loss) Earnings Per Share | |||
Basic (in dollars per share) | $ (4.94) | $ 0.16 | $ 1.27 |
Common share equivalents (in dollars per share) | 0 | 0 | (0.02) |
Diluted (in dollars per share) | $ (4.94) | $ 0.16 | $ 1.25 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-Sale Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities, Cost or Amortized Cost | $ 1,643,865 | |
Fair Value | 1,677,561 | $ 1,783,642 |
Fixed maturity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities, Cost or Amortized Cost | 1,643,865 | 1,690,890 |
Total investments available-for-sale, Gross Unrealized Gains | 46,253 | 94,056 |
Total investments available-for-sale, Gross Unrealized Losses | (12,557) | (1,304) |
Fair Value | 1,677,561 | 1,783,642 |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities, Cost or Amortized Cost | 323,773 | 277,241 |
Total investments available-for-sale, Gross Unrealized Gains | 12,156 | 19,203 |
Total investments available-for-sale, Gross Unrealized Losses | (2,212) | (39) |
Fair Value | 333,717 | 296,405 |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities, Cost or Amortized Cost | 246,586 | 286,104 |
Total investments available-for-sale, Gross Unrealized Gains | 2,384 | 7,784 |
Total investments available-for-sale, Gross Unrealized Losses | (2,339) | (40) |
Fair Value | 246,631 | 293,848 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities, Cost or Amortized Cost | 711,930 | 715,145 |
Total investments available-for-sale, Gross Unrealized Gains | 26,119 | 52,098 |
Total investments available-for-sale, Gross Unrealized Losses | (5,714) | (421) |
Fair Value | 732,335 | 766,822 |
Commercial mortgage and asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities, Cost or Amortized Cost | 301,247 | 314,911 |
Total investments available-for-sale, Gross Unrealized Gains | 4,941 | 12,611 |
Total investments available-for-sale, Gross Unrealized Losses | (1,700) | (803) |
Fair Value | 304,488 | 326,719 |
U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities, Cost or Amortized Cost | 60,329 | 97,489 |
Total investments available-for-sale, Gross Unrealized Gains | 653 | 2,360 |
Total investments available-for-sale, Gross Unrealized Losses | (592) | (1) |
Fair Value | $ 60,390 | $ 99,848 |
Investments - Schedule of Contr
Investments - Schedule of Contract Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cost or Amortized Cost | ||
One year or less | $ 86,238 | |
After one year through five years | 463,670 | |
After five years through ten years | 310,943 | |
After ten years | 235,181 | |
Residential mortgage-backed | 246,586 | |
Commercial mortgage and asset-backed | 301,247 | |
Total fixed maturity securities, Cost or Amortized Cost | 1,643,865 | |
Fair Value | ||
One year or less | 86,948 | |
After one year through five years | 477,474 | |
After five years through ten years | 314,147 | |
After ten years | 247,873 | |
Residential mortgage-backed | 246,631 | |
Commercial mortgage and asset-backed | 304,488 | |
Total, Fair Value | $ 1,677,561 | $ 1,783,642 |
Investments - Schedule of Gross
Investments - Schedule of Gross Unrealized Losses and Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fixed maturity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | $ 596,444 | $ 60,167 |
Fixed maturity securities, less than 12 months, gross unrealized losses | (11,018) | (948) |
Fixed maturity securities, 12 months or more, fair value | 21,161 | 38,802 |
Fixed maturity securities, 12 months or more, gross unrealized losses | (1,539) | (356) |
Fixed maturity securities, fair value | 617,605 | 98,969 |
Fixed maturity securities, gross unrealized losses | (12,557) | (1,304) |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 93,313 | 7,193 |
Fixed maturity securities, less than 12 months, gross unrealized losses | (2,162) | (39) |
Fixed maturity securities, 12 months or more, fair value | 1,150 | 0 |
Fixed maturity securities, 12 months or more, gross unrealized losses | (50) | 0 |
Fixed maturity securities, fair value | 94,463 | 7,193 |
Fixed maturity securities, gross unrealized losses | (2,212) | (39) |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 140,386 | 3,649 |
Fixed maturity securities, less than 12 months, gross unrealized losses | (2,337) | (40) |
Fixed maturity securities, 12 months or more, fair value | 147 | 0 |
Fixed maturity securities, 12 months or more, gross unrealized losses | (2) | 0 |
Fixed maturity securities, fair value | 140,533 | 3,649 |
Fixed maturity securities, gross unrealized losses | (2,339) | (40) |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 179,078 | 28,607 |
Fixed maturity securities, less than 12 months, gross unrealized losses | (4,232) | (421) |
Fixed maturity securities, 12 months or more, fair value | 18,635 | 0 |
Fixed maturity securities, 12 months or more, gross unrealized losses | (1,482) | 0 |
Fixed maturity securities, fair value | 197,713 | 28,607 |
Fixed maturity securities, gross unrealized losses | (5,714) | (421) |
Commercial mortgage and asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 159,289 | 18,427 |
Fixed maturity securities, less than 12 months, gross unrealized losses | (1,695) | (447) |
Fixed maturity securities, 12 months or more, fair value | 1,229 | 38,802 |
Fixed maturity securities, 12 months or more, gross unrealized losses | (5) | (356) |
Fixed maturity securities, fair value | 160,518 | 57,229 |
Fixed maturity securities, gross unrealized losses | (1,700) | (803) |
U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 24,378 | 2,291 |
Fixed maturity securities, less than 12 months, gross unrealized losses | (592) | (1) |
Fixed maturity securities, 12 months or more, fair value | 0 | 0 |
Fixed maturity securities, 12 months or more, gross unrealized losses | 0 | 0 |
Fixed maturity securities, fair value | 24,378 | 2,291 |
Fixed maturity securities, gross unrealized losses | $ (592) | $ (1) |
Investments - Narrative (Detail
Investments - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2021USD ($)issuer | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)issuerloan | Jan. 01, 2020USD ($) | Dec. 31, 2018USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||
Number of available-for-sale securities held in an unrealized loss position | issuer | 230 | ||||
Shareholders' equity | $ 725,362,000 | $ 795,608,000 | $ 778,581,000 | $ 709,241,000 | |
Bank loan portfolio aggregated unpaid principal balance | 159,000,000 | ||||
Bank loan portfolio aggregate fair value | 156,043,000 | 147,604,000 | |||
Net Investment Income | 56,865,000 | 73,368,000 | 75,652,000 | ||
Changes in fair values of bank loan participations | 6,661,000 | 1,318,000 | 0 | ||
Losses due to credit-related impairments | 0 | 8,300,000 | |||
Carrying value of impaired loans | 6,900,000 | ||||
Unpaid principal on impaired loans | 14,300,000 | ||||
Allowance for credit losses | 7,200,000 | ||||
Fixed maturity securities, available-for-sale | 1,677,561,000 | 1,783,642,000 | |||
Investment as collateral for outstanding letters of credit | 478,400,000 | ||||
Investments on deposit with state insurance departments | 54,900,000 | 46,900,000 | |||
Retained Earnings | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Shareholders' equity | (166,663,000) | 49,227,000 | 89,586,000 | 79,753,000 | |
Cumulative Effect, Period of Adoption, Adjustment | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Shareholders' equity | 8,280,000 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Shareholders' equity | $ 8,280,000 | ||||
Cumulative Effect, Period of Adoption, Adjustment | ASU 2019-05 | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Bank loan participations | $ (8,400,000) | ||||
Shareholders' equity | (7,827,000) | ||||
Cumulative Effect, Period of Adoption, Adjustment | ASU 2019-05 | Retained Earnings | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Shareholders' equity | (7,827,000) | $ (7,800,000) | |||
Fixed maturity securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Total fair value of unrealized loss position securities | 617,605,000 | 98,969,000 | |||
Gross unrealized losses | 12,557,000 | 1,304,000 | |||
Available-for-sale securities, change in gross unrealized gains (losses) | (59,100,000) | 57,700,000 | 50,300,000 | ||
Fixed maturity securities, available-for-sale | $ 1,677,561,000 | 1,783,642,000 | |||
Impaired bank loans | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Net Investment Income | $ 293,000 | ||||
Number of impaired loans | loan | 7 | ||||
Number of issuers with impaired loans | issuer | 6 | ||||
Average recorded investment in impaired bank loans | $ 3,500,000 | ||||
Net realized gain (loss) on changes in fair value of impaired bank loans | $ (8,900,000) | ||||
Loans from issuer experiencing liquidity concerns | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Number of impaired loans | loan | 2 | ||||
Number of issuers with impaired loans | issuer | 1 | ||||
Allowance for credit losses | $ 5,100,000 | ||||
Bank loan participations | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Unamortized discount | 2,400,000 | ||||
Unamortized premium | $ 4,000 | ||||
BBB- or better | Fixed maturity securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Percentage of available for sale securities | 99.50% | ||||
Loan Participations and Assignments | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Net Investment Income | $ 10,600,000 | 12,200,000 | |||
Bank Holding Company | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fixed maturity securities, available-for-sale | $ 520,000 |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Investment Income [Line Items] | |||
Gross investment income | $ 60,882 | $ 77,820 | $ 80,373 |
Investment expense | (4,017) | (4,452) | (4,721) |
Net investment income | 56,865 | 73,368 | 75,652 |
Fixed maturity securities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 42,968 | 45,070 | 39,875 |
Bank loan participations | |||
Net Investment Income [Line Items] | |||
Gross investment income | 10,571 | 12,150 | 19,772 |
Equity securities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 4,883 | 4,800 | 5,262 |
Other invested assets | |||
Net Investment Income [Line Items] | |||
Gross investment income | 2,200 | 9,181 | 6,254 |
Cash, cash equivalents, restricted cash equivalents, and short-term investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | $ 260 | $ 6,619 | $ 9,210 |
Investments - Summary of Realiz
Investments - Summary of Realized Gains and Losses on Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Fixed maturity securities, gross realized gains | $ 4,988 | $ 1,098 | $ 1,575 |
Fixed maturity securities, gross realized losses | (64) | (53) | (494) |
Fixed maturity securities | 4,924 | 1,045 | 1,081 |
Equity securities, gross realized gains | 284 | 0 | 11 |
Equity securities, gross realized losses | (827) | (1,441) | (232) |
Changes in fair values of equity securities | 5,350 | (215) | 6,257 |
Equity securities | 4,807 | (1,656) | 6,036 |
Bank loan participations, gross realized gain | 555 | 554 | 846 |
Bank loan participations, gross realized losses | (1,388) | (17,286) | (10,902) |
Changes in fair values of bank loan participations | 6,661 | 1,318 | 0 |
Bank loan participations | 5,828 | (15,414) | (10,056) |
Short-term investments and other, gross realized gains | 75 | 77 | 21 |
Short-term investments and other, gross realized losses | (150) | (2) | (1) |
Changes in fair values of short-term investments and other | 80 | (80) | 0 |
Short-term investments and other | 5 | (5) | 20 |
Total | $ 15,564 | $ (16,030) | $ (2,919) |
Investments - Summary of Privat
Investments - Summary of Private Debt and Equity Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Investment Income [Line Items] | |||
Carrying Value | $ 51,908 | $ 46,548 | |
Investment Income | 2,200 | 9,181 | $ 6,254 |
Distributions from equity method investments | 2,434 | 3,162 | 2,834 |
Renewable energy LLCs | |||
Net Investment Income [Line Items] | |||
Carrying Value | 26,920 | 30,145 | |
Investment Income | (1,437) | 2,016 | 2,181 |
Renewable energy notes receivable | |||
Net Investment Income [Line Items] | |||
Carrying Value | 5,240 | 0 | |
Investment Income | $ 939 | $ 5,630 | 1,313 |
Investment interest rate | 12.00% | 15.00% | |
Limited partnerships | |||
Net Investment Income [Line Items] | |||
Carrying Value | $ 15,248 | $ 11,903 | |
Investment Income | 2,355 | 1,192 | 2,417 |
Bank holding companies | |||
Net Investment Income [Line Items] | |||
Carrying Value | 4,500 | 4,500 | |
Investment Income | 343 | 343 | 343 |
Excess and Surplus Lines | |||
Net Investment Income [Line Items] | |||
Carrying Value | 44,138 | 4,096 | |
Investment Income | 1,409 | 272 | 2,090 |
Excess and Surplus Lines | Renewable energy LLCs | |||
Net Investment Income [Line Items] | |||
Carrying Value | 24,211 | 0 | |
Investment Income | (625) | 0 | 0 |
Excess and Surplus Lines | Renewable energy LLCs | Investment in LLC | |||
Net Investment Income [Line Items] | |||
Equity method investment transfer | $ 26,300 | ||
Excess and Surplus Lines | Renewable energy LLCs | Minimum | Investment in LLC | |||
Net Investment Income [Line Items] | |||
Ownership percentage | 2.60% | ||
Excess and Surplus Lines | Renewable energy LLCs | Maximum | Investment in LLC | |||
Net Investment Income [Line Items] | |||
Ownership percentage | 32.60% | ||
Excess and Surplus Lines | Renewable energy notes receivable | |||
Net Investment Income [Line Items] | |||
Carrying Value | $ 2,329 | 0 | |
Investment Income | 417 | 0 | 0 |
Total principal balance received | 1,700 | 8,800 | |
Excess and Surplus Lines | Limited partnerships | |||
Net Investment Income [Line Items] | |||
Carrying Value | 13,098 | 4,096 | |
Investment Income | 1,417 | 272 | 2,090 |
Equity method investment transfer | 5,100 | ||
Commitment to investment in limited partnership | 5,300 | ||
Excess and Surplus Lines | Bank holding companies | |||
Net Investment Income [Line Items] | |||
Carrying Value | 4,500 | 0 | |
Investment Income | $ 200 | 0 | 0 |
Investment interest rate | 7.60% | ||
Investment in private subordinated notes | $ 4,500 | ||
Corporate and Other | |||
Net Investment Income [Line Items] | |||
Carrying Value | 7,770 | 42,452 | |
Investment Income | 791 | 8,909 | 4,164 |
Corporate and Other | Renewable energy LLCs | |||
Net Investment Income [Line Items] | |||
Carrying Value | 2,709 | 30,145 | |
Investment Income | (812) | 2,016 | 2,181 |
Corporate and Other | Renewable energy LLCs | Investment in LLC | |||
Net Investment Income [Line Items] | |||
Equity method investment transfer | (26,300) | ||
Distributions from equity method investments | $ 1,800 | 3,100 | |
Corporate and Other | Renewable energy LLCs | Minimum | Investment in LLC | |||
Net Investment Income [Line Items] | |||
Ownership percentage | 2.60% | ||
Corporate and Other | Renewable energy LLCs | Maximum | Investment in LLC | |||
Net Investment Income [Line Items] | |||
Ownership percentage | 32.60% | ||
Corporate and Other | Renewable energy notes receivable | |||
Net Investment Income [Line Items] | |||
Carrying Value | $ 2,911 | 0 | |
Investment Income | 522 | 5,630 | 1,313 |
Total principal balance received | 2,100 | 5,300 | |
Corporate and Other | Limited partnerships | |||
Net Investment Income [Line Items] | |||
Carrying Value | 2,150 | 7,807 | |
Investment Income | 938 | 920 | 327 |
Equity method investment transfer | (5,100) | ||
Corporate and Other | Bank holding companies | |||
Net Investment Income [Line Items] | |||
Carrying Value | 0 | 4,500 | |
Investment Income | $ 143 | $ 343 | $ 343 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance at beginning of period | $ 62,953 | $ 62,006 | $ 54,450 |
Policy acquisition costs deferred: | |||
Commissions | 51,466 | 51,306 | 67,303 |
Underwriting and other issue expenses | 23,770 | 25,219 | 24,146 |
Policy acquisition costs deferred | 75,236 | 76,525 | 91,449 |
Amortization of policy acquisition costs | (69,663) | (75,578) | (83,893) |
Net change | 5,573 | 947 | 7,556 |
Balance at end of period | $ 68,526 | $ 62,953 | $ 62,006 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 11, 2007 | |
Business Acquisition [Line Items] | ||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | |
Goodwill | 181,831,000 | 181,831,000 | 181,831,000 | |
Accumulated goodwill impairment losses | 99,600,000 | 99,600,000 | ||
Impairment of intangible assets | 0 | 0 | 0 | |
Amortization of intangible assets | 363,000 | 538,000 | 597,000 | |
Excess and Surplus Lines | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 181,831,000 | 181,831,000 | 181,831,000 | |
Impairment of intangible assets | 0 | 0 | ||
Amortization of intangible assets | 363,000 | 366,000 | 362,000 | |
Specialty Admitted Insurance | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 0 | 0 | 0 | |
Impairment of intangible assets | 0 | 0 | ||
Amortization of intangible assets | $ 0 | $ 172,000 | $ 235,000 | |
James River Group, Inc. | ||||
Business Acquisition [Line Items] | ||||
Percentage of outstanding shares acquired | 100.00% |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Acquired Intangible Assets [Line Items] | ||
Identifiable intangibles not subject to amortization | $ 31,164 | $ 31,164 |
Identifiable intangible assets subject to amortization | ||
Gross Carrying Amount | 11,611 | 11,611 |
Accumulated Amortization | 6,736 | 6,373 |
Total intangible assets, gross | 42,775 | 42,775 |
Broker relationships | ||
Identifiable intangible assets subject to amortization | ||
Gross Carrying Amount | 11,611 | 11,611 |
Accumulated Amortization | $ 6,736 | 6,373 |
Weighted- Average Life (Years) | 24 years 7 months 6 days | |
Trademarks | ||
Acquired Intangible Assets [Line Items] | ||
Identifiable intangibles not subject to amortization | $ 22,200 | 22,200 |
Insurance licenses and authorities | ||
Acquired Intangible Assets [Line Items] | ||
Identifiable intangibles not subject to amortization | $ 8,964 | $ 8,964 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Future Estimated Amortization (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 363 |
2023 | 363 |
2024 | 363 |
2025 | 363 |
2026 | 363 |
Thereafter | 3,059 |
Total | $ 4,874 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Summary of Changes in Net Carrying Value of Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets [Roll Forward] | |||
Net Carrying Value | $ 36,402,000 | $ 36,940,000 | |
Amortization | (363,000) | (538,000) | $ (597,000) |
Impairment Losses | 0 | 0 | 0 |
Net Carrying Value | 36,039,000 | 36,402,000 | 36,940,000 |
Excess and Surplus Lines | |||
Intangible Assets [Roll Forward] | |||
Net Carrying Value | 29,837,000 | 30,203,000 | |
Amortization | (363,000) | (366,000) | (362,000) |
Impairment Losses | 0 | 0 | |
Net Carrying Value | 29,474,000 | 29,837,000 | 30,203,000 |
Excess and Surplus Lines | Trademarks | |||
Intangible Assets [Roll Forward] | |||
Net Carrying Value | 19,700,000 | 19,700,000 | |
Amortization | 0 | 0 | |
Impairment Losses | 0 | 0 | |
Net Carrying Value | 19,700,000 | 19,700,000 | 19,700,000 |
Excess and Surplus Lines | Insurance licenses and authorities | |||
Intangible Assets [Roll Forward] | |||
Net Carrying Value | 4,900,000 | 4,900,000 | |
Amortization | 0 | 0 | |
Impairment Losses | 0 | 0 | |
Net Carrying Value | 4,900,000 | 4,900,000 | 4,900,000 |
Excess and Surplus Lines | Broker relationships | |||
Intangible Assets [Roll Forward] | |||
Net Carrying Value | 5,237,000 | 5,603,000 | |
Amortization | (363,000) | (366,000) | |
Impairment Losses | 0 | 0 | |
Net Carrying Value | 4,874,000 | 5,237,000 | 5,603,000 |
Specialty Admitted Insurance | |||
Intangible Assets [Roll Forward] | |||
Net Carrying Value | 6,565,000 | 6,737,000 | |
Amortization | 0 | (172,000) | (235,000) |
Impairment Losses | 0 | 0 | |
Net Carrying Value | 6,565,000 | 6,565,000 | 6,737,000 |
Specialty Admitted Insurance | Trademarks | |||
Intangible Assets [Roll Forward] | |||
Net Carrying Value | 2,500,000 | 2,500,000 | |
Amortization | 0 | 0 | |
Impairment Losses | 0 | 0 | |
Net Carrying Value | 2,500,000 | 2,500,000 | 2,500,000 |
Specialty Admitted Insurance | Insurance licenses and authorities | |||
Intangible Assets [Roll Forward] | |||
Net Carrying Value | 4,065,000 | 4,065,000 | |
Amortization | 0 | 0 | |
Impairment Losses | 0 | 0 | |
Net Carrying Value | 4,065,000 | 4,065,000 | 4,065,000 |
Specialty Admitted Insurance | Broker relationships | |||
Intangible Assets [Roll Forward] | |||
Net Carrying Value | 0 | 172,000 | |
Amortization | 0 | (172,000) | |
Impairment Losses | 0 | 0 | |
Net Carrying Value | $ 0 | $ 0 | $ 172,000 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost basis | $ 4,713 | $ 5,263 |
Accumulated depreciation | (3,932) | (3,975) |
Property and equipment, net | 781 | 1,288 |
Electronic data processing hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost basis | 2,492 | 3,238 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost basis | $ 2,221 | $ 2,025 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets | |||
Assets derecognized | $ (4,948,550) | $ (5,063,072) | $ (5,024,405) | ||
Liabilities derecognized | (4,223,188) | (4,267,464) | |||
Shareholders' equity | 725,362 | 795,608 | 778,581 | $ 709,241 | |
Lease liabilities | 12,792 | 14,900 | |||
Right-of-use assets | $ 11,700 | 14,000 | |||
Weighted average discount rate | 4.10% | ||||
Weighted average remaining lease term | 3 years 7 months 6 days | ||||
Operating lease costs | $ 5,100 | $ 5,000 | $ 5,200 | ||
ASU 2016-02 | |||||
Related Party Transaction [Line Items] | |||||
Assets derecognized | $ 22,600 | ||||
Liabilities derecognized | 30,900 | ||||
Lease liabilities | 17,800 | ||||
Right-of-use assets | 17,200 | ||||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Related Party Transaction [Line Items] | |||||
Shareholders' equity | $ 8,280 | ||||
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-02 | |||||
Related Party Transaction [Line Items] | |||||
Shareholders' equity | $ 8,300 | ||||
Minority interest in partnership | |||||
Related Party Transaction [Line Items] | |||||
Lease liabilities | $ 8,500 |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Liabilities Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 4,146 | |
2023 | 3,935 | |
2024 | 2,625 | |
2025 | 2,556 | |
2026 | 407 | |
Thereafter | 90 | |
Total lease payments | 13,759 | |
Less imputed interest | (967) | |
Total operating lease liabilities | $ 12,792 | $ 14,900 |
Reserve for Losses and Loss A_3
Reserve for Losses and Loss Adjustment Expenses - Reserve for Losses and Loss Adjustment Expenses, Net of Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |||
Allowance for credit losses on reinsurance recoverables | $ 631 | $ 335 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Period Increase (Decrease) [Abstract] | |||
Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period | 1,386,061 | 1,377,461 | $ 1,194,088 |
Add: Incurred losses and loss adjustment expenses net of reinsurance: | |||
Current year | 466,574 | 386,341 | 603,094 |
Prior years | 325,778 | 92,204 | 69,008 |
Total incurred losses and loss and adjustment expenses | 792,352 | 478,545 | 672,102 |
Deduct: Loss and loss adjustment expense payments net of reinsurance: | |||
Current year | 35,006 | 31,952 | 75,249 |
Prior years | 487,741 | 437,993 | 413,480 |
Total loss and loss adjustment expense payments | 522,747 | 469,945 | 488,729 |
Reinsurance recoverable on unpaid losses, net | 1,348,628 | 805,684 | |
Reserve for losses and loss adjustment expenses net of reinsurance recoverables at end of period | 1,399,214 | 1,386,061 | 1,377,461 |
Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period | 1,349,259 | 806,019 | 668,045 |
Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period | 2,748,473 | 2,192,080 | 2,045,506 |
Excess and Surplus Lines | |||
Add: Incurred losses and loss adjustment expenses net of reinsurance: | |||
Prior years | 190,700 | 59,400 | 51,200 |
Loss Portfolio Transfer | Excess and Surplus Lines | |||
Deduct: Loss and loss adjustment expense payments net of reinsurance: | |||
Reinsurance recoverable on unpaid losses, net | $ 256,452 | $ 0 | $ 0 |
Reserve for Losses and Loss A_4
Reserve for Losses and Loss Adjustment Expenses - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Development on prior year loss reserves | |||
Reserves for losses and loss adjustment expenses | $ 325,778 | $ 92,204 | $ 69,008 |
Excess and Surplus Lines | |||
Development on prior year loss reserves | |||
Reserves for losses and loss adjustment expenses | 190,700 | 59,400 | 51,200 |
Specialty Admitted Insurance | Accident years prior to 2019 | |||
Development on prior year loss reserves | |||
Reserves for losses and loss adjustment expenses | (5,000) | ||
Specialty Admitted Insurance | Accident years prior to 2020 | |||
Development on prior year loss reserves | |||
Reserves for losses and loss adjustment expenses | (2,500) | ||
Specialty Admitted Insurance | Accident years prior to 2018 | |||
Development on prior year loss reserves | |||
Reserves for losses and loss adjustment expenses | (5,300) | ||
Casualty Reinsurance | |||
Development on prior year loss reserves | |||
Reserves for losses and loss adjustment expenses | 137,600 | ||
Casualty Reinsurance | General liability and professional liability treaties | |||
Development on prior year loss reserves | |||
Reserves for losses and loss adjustment expenses | 113,400 | ||
Casualty Reinsurance | Accident years 2014 through 2018 | |||
Development on prior year loss reserves | |||
Reserves for losses and loss adjustment expenses | 37,800 | ||
Casualty Reinsurance | Accident years 2011 through 2016 | |||
Development on prior year loss reserves | |||
Reserves for losses and loss adjustment expenses | 23,100 | ||
Commercial Auto | Excess and Surplus Lines | Accident years prior to 2019 | |||
Development on prior year loss reserves | |||
Reserves for losses and loss adjustment expenses | 200,100 | ||
Commercial Auto | Excess and Surplus Lines | Accident years 2018 and prior | |||
Development on prior year loss reserves | |||
Reserves for losses and loss adjustment expenses | 91,400 | ||
Commercial Auto | Excess and Surplus Lines | Accident years 2016 and 2017 | |||
Development on prior year loss reserves | |||
Reserves for losses and loss adjustment expenses | 57,400 | ||
Excluding Commercial Auto | Excess and Surplus Lines | |||
Development on prior year loss reserves | |||
Reserves for losses and loss adjustment expenses | $ (9,400) | $ (6,200) | |
Excluding Commercial Auto | Excess and Surplus Lines | Accident years 2018 and 2019 | |||
Development on prior year loss reserves | |||
Reserves for losses and loss adjustment expenses | $ (32,000) |
Reserve for Losses and Loss A_5
Reserve for Losses and Loss Adjustment Expenses - Incurred Losses and Loss Adjustment Expenses (Details) $ in Thousands | Dec. 31, 2021USD ($)claim | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Casualty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 1,312,871 | |||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 896,279 | |||||||||
All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance | 8,402 | |||||||||
Total outstanding losses and loss adjustment expenses, net of reinsurance | 424,994 | |||||||||
Casualty Reinsurance | Accident year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 148,103 | $ 147,413 | $ 146,045 | $ 143,305 | $ 139,978 | $ 136,813 | $ 135,594 | $ 131,281 | $ 132,388 | $ 148,251 |
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 141,563 | 139,719 | 137,430 | 133,606 | 128,567 | 121,026 | 113,943 | 97,215 | 81,859 | 73,124 |
Casualty Reinsurance | Accident year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 153,622 | 149,682 | 146,760 | 143,124 | 137,801 | 134,446 | 131,352 | 130,361 | 133,230 | |
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 142,824 | 139,250 | 134,644 | 127,732 | 119,256 | 108,396 | 93,902 | 75,094 | 59,756 | |
Casualty Reinsurance | Accident year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 139,208 | 130,822 | 126,160 | 121,200 | 116,981 | 114,636 | 115,927 | 118,881 | ||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 125,444 | 117,971 | 110,374 | 101,366 | 89,899 | 76,302 | 58,601 | 41,421 | ||
Casualty Reinsurance | Accident year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 133,790 | 120,185 | 114,517 | 109,117 | 108,699 | 108,870 | 119,157 | |||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 110,692 | 100,548 | 90,661 | 80,208 | 68,002 | 53,986 | 40,021 | |||
Casualty Reinsurance | Accident year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 132,058 | 114,979 | 108,222 | 103,544 | 105,533 | 112,759 | ||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 104,115 | 90,356 | 78,145 | 65,409 | 50,905 | 36,268 | ||||
Casualty Reinsurance | Accident year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 176,828 | 138,831 | 129,800 | 128,472 | 134,628 | |||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 126,747 | 106,942 | 90,117 | 72,891 | 47,739 | |||||
Casualty Reinsurance | Accident year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 163,957 | 125,715 | 119,098 | 121,529 | ||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 90,054 | 69,123 | 50,274 | 30,903 | ||||||
Casualty Reinsurance | Accident year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 100,895 | 85,549 | 86,022 | |||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 37,488 | 25,453 | 12,646 | |||||||
Casualty Reinsurance | Accident year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 81,800 | 80,374 | ||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 15,270 | 5,589 | ||||||||
Casualty Reinsurance | Accident year 2021 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 82,610 | |||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 2,082 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 1,514,706 | |||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 720,788 | |||||||||
All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance | 6,714 | |||||||||
Total outstanding losses and loss adjustment expenses, net of reinsurance | $ 800,632 | |||||||||
Claims outstanding | claim | 44 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 108,336 | 106,118 | 103,061 | 101,271 | 99,619 | 97,306 | 96,497 | 97,829 | 98,672 | 97,908 |
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 101,669 | 99,628 | 94,588 | 88,812 | 82,545 | 74,869 | 63,216 | 49,604 | 33,757 | 6,944 |
Claims outstanding | claim | 1,868 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 83,594 | 82,517 | 82,732 | 83,855 | 82,830 | 81,009 | 85,433 | 96,064 | 96,729 | |
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 76,295 | 74,635 | 71,035 | 66,553 | 59,641 | 44,421 | 30,382 | 14,509 | 3,867 | |
Claims outstanding | claim | 2,510 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 90,944 | 90,191 | 88,904 | 84,074 | 82,232 | 90,267 | 104,092 | 114,942 | ||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 79,980 | 76,523 | 71,549 | 58,774 | 43,891 | 28,212 | 16,969 | 3,412 | ||
Claims outstanding | claim | 2,225 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 114,398 | 110,466 | 103,688 | 102,434 | 104,847 | 113,417 | 126,443 | |||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 94,494 | 87,344 | 73,455 | 55,911 | 34,801 | 17,164 | 4,048 | |||
Claims outstanding | claim | 2,636 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 132,235 | 125,097 | 126,971 | 126,050 | 125,093 | 138,507 | ||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 102,072 | 90,166 | 70,105 | 46,045 | 22,852 | 5,180 | ||||
Claims outstanding | claim | 3,102 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 128,674 | 124,265 | 132,136 | 131,897 | 144,349 | |||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 81,303 | 64,924 | 42,764 | 22,956 | 5,290 | |||||
Claims outstanding | claim | 3,197 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 150,687 | 146,633 | 158,458 | 167,004 | ||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 76,494 | 50,679 | 26,160 | 6,000 | ||||||
Claims outstanding | claim | 4,465 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 189,671 | 194,759 | 214,653 | |||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 62,227 | 31,346 | 8,235 | |||||||
Claims outstanding | claim | 5,417 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 211,732 | 239,897 | ||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 34,561 | 8,642 | ||||||||
Claims outstanding | claim | 4,442 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2021 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 304,435 | |||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 11,693 | |||||||||
Claims outstanding | claim | 2,964,000 | |||||||||
Commercial Auto | Excess and Surplus Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 1,300,339 | |||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 975,030 | |||||||||
All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance | 325,309 | |||||||||
Total outstanding losses and loss adjustment expenses, net of reinsurance | 68,857 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 1,277 | 1,277 | 1,277 | 1,277 | 1,301 | 1,351 | 1,451 | 1,300 | 1,255 | |
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 1,275 | 1,275 | 1,275 | 1,275 | 1,275 | 1,291 | 1,285 | 1,182 | 60 | |
Claims outstanding | claim | 54 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 20,013 | 19,196 | 18,303 | 19,779 | 18,953 | 17,233 | 14,071 | 20,487 | ||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 19,163 | 18,301 | 17,745 | 18,678 | 16,359 | 12,679 | 8,645 | 6,166 | ||
Claims outstanding | claim | 7,764 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 38,046 | 37,839 | 36,636 | 36,139 | 35,149 | 33,113 | 30,109 | |||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 36,710 | 35,983 | 34,819 | 31,592 | 24,282 | 15,234 | 8,356 | |||
Claims outstanding | claim | 41,770 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 164,399 | 157,712 | 147,122 | 126,791 | 109,286 | 74,340 | ||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 152,030 | 141,545 | 125,108 | 89,381 | 54,054 | 18,295 | ||||
Claims outstanding | claim | 89,117 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 355,713 | 319,472 | 272,421 | 208,743 | 207,355 | |||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 309,860 | 252,169 | 192,961 | 107,377 | 41,467 | |||||
Claims outstanding | claim | 134,150 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 349,067 | 283,408 | 230,220 | 255,881 | ||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 257,346 | 184,686 | 119,099 | 45,136 | ||||||
Claims outstanding | claim | 97,334 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 339,771 | 240,773 | 262,306 | |||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 192,982 | 107,182 | 44,225 | |||||||
Claims outstanding | claim | 71,428 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 10,899 | 19,133 | ||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 2,854 | 628 | ||||||||
Claims outstanding | claim | 594 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2021 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 21,154 | |||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 2,810 | |||||||||
Claims outstanding | claim | 699 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 168,377 | |||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 142,067 | |||||||||
All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance | 927 | |||||||||
Outstanding losses and loss adjustment expenses assumed from involuntary workers compensation pools | 3,941 | |||||||||
Total outstanding losses and loss adjustment expenses, net of reinsurance | $ 31,178 | |||||||||
Claims outstanding | claim | 6 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 27,386 | 27,741 | 28,186 | 28,186 | 28,174 | 28,255 | 29,689 | 31,490 | 32,420 | 32,116 |
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 27,140 | 27,128 | 26,994 | 26,963 | 26,932 | 26,897 | 26,435 | 24,755 | 20,308 | $ 9,222 |
Claims outstanding | claim | 1,323 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 10,573 | 10,598 | 10,909 | 10,909 | 10,907 | 11,578 | 12,786 | 13,668 | 12,525 | |
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 10,336 | 10,335 | 10,337 | 10,309 | 10,263 | 10,246 | 9,846 | 8,723 | 4,487 | |
Claims outstanding | claim | 540 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 12,685 | 12,573 | 12,704 | 12,704 | 13,890 | 14,620 | 16,652 | 16,638 | ||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 12,287 | 12,276 | 12,282 | 12,282 | 12,236 | 12,041 | 10,648 | 4,633 | ||
Claims outstanding | claim | 851 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 16,468 | 16,492 | 17,626 | 18,376 | 19,741 | 21,274 | 20,938 | |||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 16,069 | 16,068 | 15,901 | 15,889 | 15,118 | 13,285 | 6,604 | |||
Claims outstanding | claim | 975 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 13,069 | 14,050 | 15,800 | 18,050 | 20,299 | 21,678 | ||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 12,483 | 12,481 | 12,432 | 12,135 | 10,227 | 4,664 | ||||
Claims outstanding | claim | 836 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 16,606 | 18,810 | 19,779 | 22,071 | 24,869 | |||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 15,210 | 15,195 | 14,285 | 12,782 | 6,546 | |||||
Claims outstanding | claim | 1,093 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 14,200 | 16,038 | 16,288 | 16,432 | ||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 11,746 | 11,412 | 9,034 | 4,497 | ||||||
Claims outstanding | claim | 1,238 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 20,631 | 21,056 | 20,253 | |||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 16,254 | 13,776 | 5,473 | |||||||
Claims outstanding | claim | 1,552 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 22,240 | 20,137 | ||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 14,668 | 7,394 | ||||||||
Claims outstanding | claim | 1,367 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2021 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 14,519 | |||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 5,874 | |||||||||
Claims outstanding | claim | 1,238 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 160,022 | |||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 87,250 | |||||||||
All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance | 72,772 | |||||||||
Outstanding losses and loss adjustment expenses assumed from involuntary workers compensation pools | 781 | |||||||||
Total outstanding losses and loss adjustment expenses, net of reinsurance | 73,553 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | 52 | 52 | 52 | 52 | 52 | 52 | 52 | 80 | 104 | |
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 52 | 52 | 52 | 52 | 52 | 52 | 52 | 52 | $ 28 | |
Claims outstanding | claim | 22 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 3,068 | 3,081 | 3,083 | 3,228 | 3,425 | 3,818 | 3,468 | 3,460 | ||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 2,926 | 2,917 | 2,916 | 2,854 | 2,728 | 2,369 | 1,687 | $ 883 | ||
Claims outstanding | claim | 858 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 8,436 | 8,444 | 8,384 | 8,974 | 9,358 | 9,632 | 7,136 | |||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 7,728 | 7,654 | 7,329 | 6,919 | 6,165 | 4,666 | $ 2,058 | |||
Claims outstanding | claim | 1,361 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 15,090 | 14,468 | 15,522 | 14,682 | 15,670 | 11,542 | ||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 11,711 | 10,896 | 10,732 | 6,888 | 5,123 | $ 1,894 | ||||
Claims outstanding | claim | 2,816 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 25,097 | 24,728 | 25,201 | 24,271 | 21,229 | |||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 18,219 | 15,854 | 13,065 | 6,682 | $ 1,223 | |||||
Claims outstanding | claim | 6,788 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 20,158 | 19,822 | 20,677 | 21,758 | ||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 12,631 | 10,495 | 4,972 | $ 885 | ||||||
Claims outstanding | claim | 7,360 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 19,991 | 19,020 | 18,832 | |||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 9,958 | 5,125 | $ 4,358 | |||||||
Claims outstanding | claim | 8,084 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 28,131 | 25,433 | ||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 15,678 | $ 5,375 | ||||||||
Claims outstanding | claim | 8,680 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2021 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and loss adjustment expenses, net of reinsurance | $ 39,999 | |||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 8,347 | |||||||||
Claims outstanding | claim | 8,253 |
Reserve for Losses and Loss A_6
Reserve for Losses and Loss Adjustment Expenses - Cumulative Paid Losses and Loss Adjustment Expenses (Details) $ in Thousands | Dec. 31, 2021USD ($)claim | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Claims Development [Line Items] | ||||||||||
Reinsurance recoverable on unpaid losses, net | $ 1,348,628 | $ 805,684 | ||||||||
Casualty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 896,279 | |||||||||
All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance | 8,402 | |||||||||
Total outstanding losses and loss adjustment expenses, net of reinsurance | 424,994 | |||||||||
Casualty Reinsurance | Accident year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 141,563 | 139,719 | $ 137,430 | $ 133,606 | $ 128,567 | $ 121,026 | $ 113,943 | $ 97,215 | $ 81,859 | $ 73,124 |
Casualty Reinsurance | Accident year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 142,824 | 139,250 | 134,644 | 127,732 | 119,256 | 108,396 | 93,902 | 75,094 | 59,756 | |
Casualty Reinsurance | Accident year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 125,444 | 117,971 | 110,374 | 101,366 | 89,899 | 76,302 | 58,601 | 41,421 | ||
Casualty Reinsurance | Accident year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 110,692 | 100,548 | 90,661 | 80,208 | 68,002 | 53,986 | 40,021 | |||
Casualty Reinsurance | Accident year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 104,115 | 90,356 | 78,145 | 65,409 | 50,905 | 36,268 | ||||
Casualty Reinsurance | Accident year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 126,747 | 106,942 | 90,117 | 72,891 | 47,739 | |||||
Casualty Reinsurance | Accident year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 90,054 | 69,123 | 50,274 | 30,903 | ||||||
Casualty Reinsurance | Accident year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 37,488 | 25,453 | 12,646 | |||||||
Casualty Reinsurance | Accident year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 15,270 | 5,589 | ||||||||
Excluding Commercial Auto | Excess and Surplus Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | 720,788 | |||||||||
All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance | 6,714 | |||||||||
Total outstanding losses and loss adjustment expenses, net of reinsurance | $ 800,632 | |||||||||
Claims outstanding | claim | 44 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 101,669 | 99,628 | 94,588 | 88,812 | 82,545 | 74,869 | 63,216 | 49,604 | 33,757 | 6,944 |
Claims outstanding | claim | 1,868 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 76,295 | 74,635 | 71,035 | 66,553 | 59,641 | 44,421 | 30,382 | 14,509 | 3,867 | |
Claims outstanding | claim | 2,510 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 79,980 | 76,523 | 71,549 | 58,774 | 43,891 | 28,212 | 16,969 | 3,412 | ||
Claims outstanding | claim | 2,225 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 94,494 | 87,344 | 73,455 | 55,911 | 34,801 | 17,164 | 4,048 | |||
Claims outstanding | claim | 2,636 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 102,072 | 90,166 | 70,105 | 46,045 | 22,852 | 5,180 | ||||
Claims outstanding | claim | 3,102 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 81,303 | 64,924 | 42,764 | 22,956 | 5,290 | |||||
Claims outstanding | claim | 3,197 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 76,494 | 50,679 | 26,160 | 6,000 | ||||||
Claims outstanding | claim | 4,465 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 62,227 | 31,346 | 8,235 | |||||||
Claims outstanding | claim | 5,417 | |||||||||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 34,561 | 8,642 | ||||||||
Claims outstanding | claim | 4,442 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 87,250 | |||||||||
All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance | 72,772 | |||||||||
Outstanding losses and loss adjustment expenses assumed from involuntary workers compensation pools | 781 | |||||||||
Total outstanding losses and loss adjustment expenses, net of reinsurance | 73,553 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 52 | 52 | 52 | 52 | 52 | 52 | 52 | 52 | 28 | |
Claims outstanding | claim | 22 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 2,926 | 2,917 | 2,916 | 2,854 | 2,728 | 2,369 | 1,687 | 883 | ||
Claims outstanding | claim | 858 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 7,728 | 7,654 | 7,329 | 6,919 | 6,165 | 4,666 | 2,058 | |||
Claims outstanding | claim | 1,361 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 11,711 | 10,896 | 10,732 | 6,888 | 5,123 | 1,894 | ||||
Claims outstanding | claim | 2,816 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 18,219 | 15,854 | 13,065 | 6,682 | 1,223 | |||||
Claims outstanding | claim | 6,788 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 12,631 | 10,495 | 4,972 | 885 | ||||||
Claims outstanding | claim | 7,360 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 9,958 | 5,125 | 4,358 | |||||||
Claims outstanding | claim | 8,084 | |||||||||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 15,678 | 5,375 | ||||||||
Claims outstanding | claim | 8,680 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 142,067 | |||||||||
All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance | 927 | |||||||||
Outstanding losses and loss adjustment expenses assumed from involuntary workers compensation pools | 3,941 | |||||||||
Total outstanding losses and loss adjustment expenses, net of reinsurance | $ 31,178 | |||||||||
Claims outstanding | claim | 6 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 27,140 | 27,128 | 26,994 | 26,963 | 26,932 | 26,897 | 26,435 | 24,755 | 20,308 | $ 9,222 |
Claims outstanding | claim | 1,323 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 10,336 | 10,335 | 10,337 | 10,309 | 10,263 | 10,246 | 9,846 | 8,723 | 4,487 | |
Claims outstanding | claim | 540 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 12,287 | 12,276 | 12,282 | 12,282 | 12,236 | 12,041 | 10,648 | 4,633 | ||
Claims outstanding | claim | 851 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 16,069 | 16,068 | 15,901 | 15,889 | 15,118 | 13,285 | 6,604 | |||
Claims outstanding | claim | 975 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 12,483 | 12,481 | 12,432 | 12,135 | 10,227 | 4,664 | ||||
Claims outstanding | claim | 836 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 15,210 | 15,195 | 14,285 | 12,782 | 6,546 | |||||
Claims outstanding | claim | 1,093 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 11,746 | 11,412 | 9,034 | 4,497 | ||||||
Claims outstanding | claim | 1,238 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 16,254 | 13,776 | 5,473 | |||||||
Claims outstanding | claim | 1,552 | |||||||||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 14,668 | 7,394 | ||||||||
Claims outstanding | claim | 1,367 | |||||||||
Commercial Auto | Excess and Surplus Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 975,030 | |||||||||
All outstanding losses and loss adjustment expenses prior to 2012, net of reinsurance | 325,309 | |||||||||
Reinsurance recoverable on unpaid losses, net | 256,452 | |||||||||
Total outstanding losses and loss adjustment expenses, net of reinsurance | 68,857 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 1,275 | 1,275 | 1,275 | 1,275 | 1,275 | 1,291 | 1,285 | 1,182 | $ 60 | |
Claims outstanding | claim | 54 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 19,163 | 18,301 | 17,745 | 18,678 | 16,359 | 12,679 | 8,645 | $ 6,166 | ||
Claims outstanding | claim | 7,764 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 36,710 | 35,983 | 34,819 | 31,592 | 24,282 | 15,234 | $ 8,356 | |||
Claims outstanding | claim | 41,770 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 152,030 | 141,545 | 125,108 | 89,381 | 54,054 | $ 18,295 | ||||
Claims outstanding | claim | 89,117 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 309,860 | 252,169 | 192,961 | 107,377 | $ 41,467 | |||||
Claims outstanding | claim | 134,150 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 257,346 | 184,686 | 119,099 | $ 45,136 | ||||||
Claims outstanding | claim | 97,334 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 192,982 | 107,182 | $ 44,225 | |||||||
Claims outstanding | claim | 71,428 | |||||||||
Commercial Auto | Excess and Surplus Lines | Accident year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid losses and loss adjustment expenses, net of reinsurance | $ 2,854 | $ 628 | ||||||||
Claims outstanding | claim | 594 |
Reserve for Losses and Loss A_7
Reserve for Losses and Loss Adjustment Expenses - Reserves for Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Claims Development [Line Items] | ||||
Net reserve for losses and loss adjustment expenses | $ 1,399,214 | $ 1,386,061 | $ 1,377,461 | $ 1,194,088 |
Allowance for credit losses on reinsurance recoverables | 631 | 335 | ||
Reinsurance recoverables on unpaid losses (gross of $631,000 allowance for credit losses on reinsurance recoverables) | 1,349,259 | 806,019 | 668,045 | |
Gross reserve for losses and loss adjustment expenses | 2,748,473 | $ 2,192,080 | $ 2,045,506 | |
Casualty Reinsurance | ||||
Claims Development [Line Items] | ||||
Net reserve for losses and loss adjustment expenses | 424,994 | |||
Excluding Commercial Auto | Excess and Surplus Lines | ||||
Claims Development [Line Items] | ||||
Net reserve for losses and loss adjustment expenses | 800,632 | |||
Commercial Auto | Excess and Surplus Lines | ||||
Claims Development [Line Items] | ||||
Net reserve for losses and loss adjustment expenses | 68,857 | |||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | ||||
Claims Development [Line Items] | ||||
Net reserve for losses and loss adjustment expenses | 31,178 | |||
Fronting and Programs | Specialty Admitted Insurance | ||||
Claims Development [Line Items] | ||||
Net reserve for losses and loss adjustment expenses | $ 73,553 |
Reserve for Losses and Loss A_8
Reserve for Losses and Loss Adjustment Expenses - Average Annual Percentage Payouts of Incurred Claims (Details) | Dec. 31, 2021 |
Casualty Reinsurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 13.20% |
Year 2 | 9.70% |
Year 3 | 7.70% |
Year 4 | 7.00% |
Year 5 | 7.50% |
Year 6 | 7.40% |
Year 7 | 7.40% |
Year 8 | 7.00% |
Year 9 | 6.80% |
Year 10 | 6.10% |
Excluding Commercial Auto | E&S | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 8.70% |
Year 2 | 15.10% |
Year 3 | 17.10% |
Year 4 | 18.20% |
Year 5 | 14.70% |
Year 6 | 8.40% |
Year 7 | 5.30% |
Year 8 | 4.10% |
Year 9 | 2.30% |
Year 10 | 1.80% |
Commercial Auto | E&S | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 17.70% |
Year 2 | 35.00% |
Year 3 | 17.90% |
Year 4 | 13.90% |
Year 5 | 8.40% |
Year 6 | 3.20% |
Year 7 | 1.10% |
Year 8 | 0.60% |
Year 9 | 2.10% |
Individual Risk Workers' Compensation | Specialty Admitted Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 27.80% |
Year 2 | 31.30% |
Year 3 | 15.20% |
Year 4 | 8.70% |
Year 5 | 6.50% |
Year 6 | 3.40% |
Year 7 | 2.20% |
Year 8 | 1.10% |
Year 9 | 1.20% |
Year 10 | 0.90% |
Fronting and Programs | Specialty Admitted Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 17.80% |
Year 2 | 22.30% |
Year 3 | 21.20% |
Year 4 | 14.10% |
Year 5 | 9.30% |
Year 6 | 6.00% |
Year 7 | 4.70% |
Year 8 | 2.30% |
Year 9 | 2.30% |
Reserve for Losses and Loss A_9
Reserve for Losses and Loss Adjustment Expenses - IBNR Liabilities and Claims Frequency (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)claim | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 792,352 | $ 478,545 | $ 672,102 |
Casualty Reinsurance | Accident year 2012 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | 148,103 | ||
IBNR | 906 | ||
Casualty Reinsurance | Accident year 2013 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | 153,622 | ||
IBNR | 2,566 | ||
Casualty Reinsurance | Accident year 2014 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | 139,208 | ||
IBNR | 5,712 | ||
Casualty Reinsurance | Accident year 2015 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | 133,790 | ||
IBNR | 9,817 | ||
Casualty Reinsurance | Accident year 2016 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | 132,058 | ||
IBNR | 14,766 | ||
Casualty Reinsurance | Accident year 2017 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | 176,828 | ||
IBNR | 33,463 | ||
Casualty Reinsurance | Accident year 2018 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | 163,957 | ||
IBNR | 42,942 | ||
Casualty Reinsurance | Accident year 2019 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | 100,895 | ||
IBNR | 49,980 | ||
Casualty Reinsurance | Accident year 2020 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | 81,800 | ||
IBNR | 94,855 | ||
Casualty Reinsurance | Accident year 2021 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | 82,610 | ||
IBNR | 24,450 | ||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2013 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | 52 | ||
IBNR | $ 0 | ||
Cumulative Number of Reported Claims | claim | 22 | ||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2014 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 3,068 | ||
IBNR | $ 134 | ||
Cumulative Number of Reported Claims | claim | 858 | ||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2015 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 8,436 | ||
IBNR | $ 502 | ||
Cumulative Number of Reported Claims | claim | 1,361 | ||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2016 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 15,090 | ||
IBNR | $ 2,241 | ||
Cumulative Number of Reported Claims | claim | 2,816 | ||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2017 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 25,097 | ||
IBNR | $ 4,630 | ||
Cumulative Number of Reported Claims | claim | 6,788 | ||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2018 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 20,158 | ||
IBNR | $ 4,000 | ||
Cumulative Number of Reported Claims | claim | 7,360 | ||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2019 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 19,991 | ||
IBNR | $ 5,316 | ||
Cumulative Number of Reported Claims | claim | 8,084 | ||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2020 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 28,131 | ||
IBNR | $ 5,843 | ||
Cumulative Number of Reported Claims | claim | 8,680 | ||
Fronting and Programs | Specialty Admitted Insurance | Accident year 2021 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 39,999 | ||
IBNR | $ 22,373 | ||
Cumulative Number of Reported Claims | claim | 8,253 | ||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | |||
Claims Development [Line Items] | |||
Cumulative Number of Reported Claims | claim | 6 | ||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2012 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 27,386 | ||
IBNR | $ 247 | ||
Cumulative Number of Reported Claims | claim | 1,323 | ||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2013 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 10,573 | ||
IBNR | $ 237 | ||
Cumulative Number of Reported Claims | claim | 540 | ||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2014 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 12,685 | ||
IBNR | $ 319 | ||
Cumulative Number of Reported Claims | claim | 851 | ||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2015 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 16,468 | ||
IBNR | $ 391 | ||
Cumulative Number of Reported Claims | claim | 975 | ||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2016 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 13,069 | ||
IBNR | $ 585 | ||
Cumulative Number of Reported Claims | claim | 836 | ||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2017 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 16,606 | ||
IBNR | $ 1,283 | ||
Cumulative Number of Reported Claims | claim | 1,093 | ||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2018 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 14,200 | ||
IBNR | $ 2,253 | ||
Cumulative Number of Reported Claims | claim | 1,238 | ||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2019 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 20,631 | ||
IBNR | $ 3,057 | ||
Cumulative Number of Reported Claims | claim | 1,552 | ||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2020 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 22,240 | ||
IBNR | $ 3,890 | ||
Cumulative Number of Reported Claims | claim | 1,367 | ||
Individual Risk Workers' Compensation | Specialty Admitted Insurance | Accident year 2021 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 14,519 | ||
IBNR | $ 2,845 | ||
Cumulative Number of Reported Claims | claim | 1,238 | ||
Commercial Auto | Excess and Surplus Lines | Accident year 2013 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 1,277 | ||
IBNR | $ 2 | ||
Cumulative Number of Reported Claims | claim | 54 | ||
Commercial Auto | Excess and Surplus Lines | Accident year 2014 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 20,013 | ||
IBNR | $ 266 | ||
Cumulative Number of Reported Claims | claim | 7,764 | ||
Commercial Auto | Excess and Surplus Lines | Accident year 2015 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 38,046 | ||
IBNR | $ 741 | ||
Cumulative Number of Reported Claims | claim | 41,770 | ||
Commercial Auto | Excess and Surplus Lines | Accident year 2016 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 164,399 | ||
IBNR | $ 4,895 | ||
Cumulative Number of Reported Claims | claim | 89,117 | ||
Commercial Auto | Excess and Surplus Lines | Accident year 2017 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 355,713 | ||
IBNR | $ 9,690 | ||
Cumulative Number of Reported Claims | claim | 134,150 | ||
Commercial Auto | Excess and Surplus Lines | Accident year 2018 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 349,067 | ||
IBNR | $ 22,594 | ||
Cumulative Number of Reported Claims | claim | 97,334 | ||
Commercial Auto | Excess and Surplus Lines | Accident year 2019 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 339,771 | ||
IBNR | $ 54,011 | ||
Cumulative Number of Reported Claims | claim | 71,428 | ||
Commercial Auto | Excess and Surplus Lines | Accident year 2020 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 10,899 | ||
IBNR | $ 3,442 | ||
Cumulative Number of Reported Claims | claim | 594 | ||
Commercial Auto | Excess and Surplus Lines | Accident year 2021 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 21,154 | ||
IBNR | $ 14,481 | ||
Cumulative Number of Reported Claims | claim | 699 | ||
Excluding Commercial Auto | Excess and Surplus Lines | |||
Claims Development [Line Items] | |||
Cumulative Number of Reported Claims | claim | 44 | ||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2012 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 108,336 | ||
IBNR | $ 1,449 | ||
Cumulative Number of Reported Claims | claim | 1,868 | ||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2013 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 83,594 | ||
IBNR | $ 2,624 | ||
Cumulative Number of Reported Claims | claim | 2,510 | ||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2014 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 90,944 | ||
IBNR | $ 4,040 | ||
Cumulative Number of Reported Claims | claim | 2,225 | ||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2015 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 114,398 | ||
IBNR | $ 5,543 | ||
Cumulative Number of Reported Claims | claim | 2,636 | ||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2016 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 132,235 | ||
IBNR | $ 10,541 | ||
Cumulative Number of Reported Claims | claim | 3,102 | ||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2017 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 128,674 | ||
IBNR | $ 14,307 | ||
Cumulative Number of Reported Claims | claim | 3,197 | ||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2018 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 150,687 | ||
IBNR | $ 31,961 | ||
Cumulative Number of Reported Claims | claim | 4,465 | ||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2019 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 189,671 | ||
IBNR | $ 77,244 | ||
Cumulative Number of Reported Claims | claim | 5,417 | ||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2020 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 211,732 | ||
IBNR | $ 128,364 | ||
Cumulative Number of Reported Claims | claim | 4,442 | ||
Excluding Commercial Auto | Excess and Surplus Lines | Accident year 2021 | |||
Claims Development [Line Items] | |||
Incurred Losses and Loss Adj Expenses | $ 304,435 | ||
IBNR | $ 252,419 | ||
Cumulative Number of Reported Claims | claim | 2,964,000 |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverable on unpaid losses, net | $ 1,348,628 | $ 805,684 |
Reinsurance recoverable on paid losses | $ 82,235 | 46,118 |
Percentage of reinsurance recoverables on unpaid losses for 3 largest reinsurers | 52.40% | |
Prepaid reinsurance premiums ceded | $ 291,498 | $ 243,741 |
Percentage of prepaid reinsurance premiums ceded for 3 largest reinsurers | 49.30% | |
Largest reinsurer one | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverable on unpaid losses, net | $ 325,000 | |
Prepaid reinsurance premiums ceded | 80,700 | |
Largest reinsurer two | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverable on unpaid losses, net | 256,500 | |
Prepaid reinsurance premiums ceded | 43,200 | |
Largest reinsurer three | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverable on unpaid losses, net | 125,400 | |
Prepaid reinsurance premiums ceded | $ 19,800 |
Reinsurance - Summary of Premiu
Reinsurance - Summary of Premiums Written, Premiums Earned, and Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Written premiums: | |||
Direct | $ 1,322,034 | $ 1,103,994 | $ 1,305,948 |
Assumed | 185,265 | 153,006 | 164,787 |
Ceded | (762,919) | (609,226) | (574,585) |
Net written premiums | 744,380 | 647,774 | 896,150 |
Earned premiums: | |||
Direct | 1,255,875 | 1,005,138 | 1,182,501 |
Assumed | 154,243 | 145,867 | 150,330 |
Ceded | (714,524) | (544,199) | (509,085) |
Net earned premiums | 695,594 | 606,806 | 823,746 |
Losses and loss adjustment expenses: | |||
Direct | 1,117,673 | 709,545 | 953,548 |
Assumed | 232,240 | 125,096 | 113,843 |
Ceded | (557,561) | (356,096) | (395,289) |
Net | $ 792,352 | $ 478,545 | $ 672,102 |
Senior Debt (Details)
Senior Debt (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2021 | Nov. 08, 2019 | Aug. 02, 2017 | May 26, 2004 | |
Line of Credit Facility [Line Items] | |||||
Amount outstanding on line of credit | $ 262,300,000 | $ 262,300,000 | |||
2013 Facility | |||||
Line of Credit Facility [Line Items] | |||||
Current total capacity | 315,000,000 | ||||
2013 Facility | Bank Holding Company | |||||
Line of Credit Facility [Line Items] | |||||
Commitment to lend | 36,000,000 | ||||
2013 Facility | Secured | Jrg Re | |||||
Line of Credit Facility [Line Items] | |||||
Total capacity | 102,500,000 | ||||
Letters of credit outstanding | 34,300,000 | ||||
2013 Facility | Unsecured | |||||
Line of Credit Facility [Line Items] | |||||
Total capacity | 212,500,000 | $ 212,500,000 | |||
Amount outstanding on line of credit | 185,800,000 | $ 185,800,000 | |||
Additional borrowings | 52,500,000 | ||||
2013 Facility | LIBOR | Unsecured | |||||
Line of Credit Facility [Line Items] | |||||
Margin above LIBOR, percentage rate | 1.625% | ||||
2017 Facility | |||||
Line of Credit Facility [Line Items] | |||||
Total capacity | $ 100,000,000 | ||||
2017 Facility | Secured | Jrg Re | |||||
Line of Credit Facility [Line Items] | |||||
Letters of credit outstanding | $ 20,500,000 | ||||
2017 Facility | Unsecured | |||||
Line of Credit Facility [Line Items] | |||||
Amount outstanding on line of credit | $ 61,500,000 | ||||
Additional borrowings | $ 51,500,000 | ||||
2017 Facility | LIBOR | Unsecured | |||||
Line of Credit Facility [Line Items] | |||||
Margin above LIBOR, percentage rate | 1.625% | ||||
James River Group Senior Debt | |||||
Line of Credit Facility [Line Items] | |||||
Principal amount of Senior Debt | $ 15,000,000 | ||||
James River Group Senior Debt | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Margin above LIBOR, percentage rate | 3.85% |
Junior Subordinated Debt - Summ
Junior Subordinated Debt - Summary of Junior Subordinated Debt and Trust Preferred Securities (Details) - Junior Subordinated Debt $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
James River Capital Trust I | |
Debt Instrument [Line Items] | |
Issue date | May 26, 2004 |
Principal amount of Trust Preferred Securities | $ 7,000 |
Principal amount of Junior Subordinated Debt | 7,217 |
Carrying amount of Junior Subordinated Debt net of repurchases | $ 7,217 |
Maturity date of Junior Subordinated Debt, unless accelerated earlier | May 24, 2034 |
Trust common stock | $ 217 |
James River Capital Trust I | LIBOR | |
Debt Instrument [Line Items] | |
Interest rate, per annum | 4.00% |
James River Capital Trust II | |
Debt Instrument [Line Items] | |
Issue date | Dec. 15, 2004 |
Principal amount of Trust Preferred Securities | $ 15,000 |
Principal amount of Junior Subordinated Debt | 15,464 |
Carrying amount of Junior Subordinated Debt net of repurchases | $ 15,464 |
Maturity date of Junior Subordinated Debt, unless accelerated earlier | Dec. 15, 2034 |
Trust common stock | $ 464 |
James River Capital Trust II | LIBOR | |
Debt Instrument [Line Items] | |
Interest rate, per annum | 3.40% |
James River Capital Trust III | |
Debt Instrument [Line Items] | |
Issue date | Jun. 15, 2006 |
Principal amount of Trust Preferred Securities | $ 20,000 |
Principal amount of Junior Subordinated Debt | 20,619 |
Carrying amount of Junior Subordinated Debt net of repurchases | $ 20,619 |
Maturity date of Junior Subordinated Debt, unless accelerated earlier | Jun. 15, 2036 |
Trust common stock | $ 619 |
James River Capital Trust III | LIBOR | |
Debt Instrument [Line Items] | |
Interest rate, per annum | 3.00% |
James River Capital Trust IV | |
Debt Instrument [Line Items] | |
Issue date | Dec. 11, 2007 |
Principal amount of Trust Preferred Securities | $ 54,000 |
Principal amount of Junior Subordinated Debt | 55,670 |
Carrying amount of Junior Subordinated Debt net of repurchases | $ 44,827 |
Maturity date of Junior Subordinated Debt, unless accelerated earlier | Dec. 15, 2037 |
Trust common stock | $ 1,670 |
James River Capital Trust IV | LIBOR | |
Debt Instrument [Line Items] | |
Interest rate, per annum | 3.10% |
Franklin Holdings II (Bermuda) Capital Trust I | |
Debt Instrument [Line Items] | |
Issue date | Jan. 10, 2008 |
Principal amount of Trust Preferred Securities | $ 30,000 |
Principal amount of Junior Subordinated Debt | 30,928 |
Carrying amount of Junior Subordinated Debt net of repurchases | $ 15,928 |
Maturity date of Junior Subordinated Debt, unless accelerated earlier | Mar. 15, 2038 |
Trust common stock | $ 928 |
Franklin Holdings II (Bermuda) Capital Trust I | LIBOR | |
Debt Instrument [Line Items] | |
Interest rate, per annum | 4.00% |
Junior Subordinated Debt - Narr
Junior Subordinated Debt - Narrative (Details) - Junior Subordinated Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Instrument [Line Items] | |
Debt redemption percentage | 100.00% |
Deferred interest payment period (in years) | 5 years |
Capital Stock - Narrative (Deta
Capital Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | May 10, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | |||
Common stock, par value (in dollars per share) | $ 0.0002 | $ 0.0002 | |||
Common stock, shares outstanding (in shares) | 37,373,066 | 30,649,261 | |||
Common stock, shares issued (in shares) | 37,373,066 | 30,649,261 | |||
Undesignated preferred stock, shares authorized | 20,000,000 | 20,000,000 | |||
Undesignated stock par value (in dollars per share) | $ 0.00125 | $ 0.00125 | |||
Preferred stock, shares issued (in shares) | 0 | 0 | |||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||
Proceeds from issuance of stock | $ 192,107 | $ 0 | $ 0 | ||
Common shares reserved for future issuance | 4,321,150 | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock unit dividend equivalents | $ 404 | 449 | 433 | ||
Dividends payable | $ 518 | $ 663 | $ 623 | ||
Common stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares outstanding (in shares) | 37,373,066 | 30,649,261 | 30,424,391 | 29,988,460 | |
Issuance of common shares related to outstanding equity plan awards (in shares) | 226,305 | 224,870 | |||
Exercise of stock options (in shares) | 93,446 | 113,346 | 345,434 | ||
Vesting of RSUs (in shares) | 132,859 | 111,524 | 90,497 | ||
Public Stock Offering | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common shares issued during period (in shares) | 6,497,500 | ||||
Shares issued at a public offering price (in dollars per share) | $ 31 | ||||
Proceeds from issuance of stock | $ 192,100 |
Capital Stock - Summary of Cash
Capital Stock - Summary of Cash Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2021 | Oct. 26, 2021 | Sep. 30, 2021 | Jul. 27, 2021 | Jun. 30, 2021 | Apr. 27, 2021 | Mar. 31, 2021 | Feb. 24, 2021 | Dec. 31, 2020 | Oct. 27, 2020 | Sep. 30, 2020 | Jul. 28, 2020 | Jun. 30, 2020 | Apr. 28, 2020 | Mar. 31, 2020 | Feb. 19, 2020 | Dec. 31, 2019 | Nov. 05, 2019 | Sep. 30, 2019 | Jul. 30, 2019 | Jun. 28, 2019 | Apr. 30, 2019 | Mar. 29, 2019 | Feb. 20, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||
Dividend declared per share (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 1.20 | $ 1.20 | $ 1.20 | ||||||||||||
Total Amount (thousands) | $ 11,292 | $ 11,282 | $ 11,291 | $ 9,345 | $ 9,305 | $ 9,292 | $ 9,271 | $ 9,269 | $ 9,229 | $ 9,231 | $ 9,205 | $ 9,146 | $ 43,210 | $ 37,137 | $ 36,811 |
Equity Awards - Narrative (Deta
Equity Awards - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted | 0 | 0 | 0 | ||
Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, options, outstanding | 287,974 | 463,324 | 643,851 | 1,115,324 | |
Vesting period (in years) | 3 years | ||||
Contractual life of option (in years) | 7 years | ||||
Total intrinsic value of options exercised | $ 1.3 | $ 3.8 | $ 8.2 | ||
Aggregate intrinsic value of options outstanding | 0 | 7.8 | 7.1 | ||
Aggregate intrinsic value of options exercisable | $ 0 | $ 7.8 | $ 7.1 | ||
Fair value of shares used in calculation of intrinsic values (in dollars per share) | $ 28.81 | $ 49.15 | $ 41.21 | ||
Weighted-average remaining contractual life of options outstanding (in years) | 1 year 4 months 24 days | ||||
Options granted | 0 | 0 | 0 | ||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
Total fair value of shares vested | $ 9.1 | $ 7.2 | $ 5.3 | ||
RSUs | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 1 year | ||||
RSUs | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 5 years | ||||
Legacy Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, options, outstanding | 0 | ||||
2014 Long Term Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of shares available for issuance | 4,171,150 | ||||
Number of shares available for grant | 1,326,456 | ||||
2014 Non-Employee Director Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of shares available for issuance | 150,000 | ||||
Number of shares available for grant | 94,781 | ||||
Increase in number of common shares authorized for issuance | 100,000 | ||||
Non-employee directors | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 1 year |
Equity Awards - Summary of Opti
Equity Awards - Summary of Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | |||
Granted (in shares) | 0 | 0 | 0 |
Options | |||
Shares | |||
Beginning of year (in shares) | 463,324 | 643,851 | 1,115,324 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (126,798) | (180,527) | (459,415) |
Forfeited (in shares) | (48,552) | 0 | (12,058) |
End of year (in shares) | 287,974 | 463,324 | 643,851 |
Exercisable, end of year (in shares) | 287,974 | 463,324 | 590,340 |
Weighted- Average Exercise Price | |||
Beginning of year (in dollars per share) | $ 32.25 | $ 30.41 | $ 29.02 |
Granted (in dollars per share) | 0 | 0 | 0 |
Exercised (in dollars per share) | 22.26 | 25.70 | 26.87 |
Forfeited (in dollars per share) | 40.42 | 0 | 36.84 |
End of year (in dollars per share) | 35.26 | 32.25 | 30.41 |
Exercisable, end of year (in dollars per share) | $ 35.26 | $ 32.25 | $ 29.34 |
Equity Awards - Summary of RSU
Equity Awards - Summary of RSU Activity (Details) - RSUs - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | |||
Unvested, beginning of year (in shares) | 399,856 | 340,368 | 300,142 |
Granted (in shares) | 161,971 | 272,608 | 197,078 |
Vested (in shares) | (194,157) | (165,344) | (134,407) |
Forfeited (in shares) | (75,535) | (47,776) | (22,445) |
Unvested, end of year (in shares) | 292,135 | 399,856 | 340,368 |
Weighted- Average Grant Date Fair Value | |||
Unvested, beginning of year (in dollars per share) | $ 43.59 | $ 41.50 | $ 39.22 |
Granted (in dollars per share) | 47.82 | 45.11 | 42.56 |
Vested (in dollars per share) | 42.74 | 41.49 | 37.99 |
Forfeited (in dollars per share) | 45.98 | 44.57 | 41.32 |
Unvested, end of year (in dollars per share) | $ 45.89 | $ 43.59 | $ 41.50 |
Equity Awards - Summary of Shar
Equity Awards - Summary of Share Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Share based compensation expense | $ 6,658 | $ 7,625 | $ 7,178 |
U.S. tax benefit on share based compensation expense | $ 1,206 | $ 1,001 | $ 872 |
Equity Awards - Compensation Ex
Equity Awards - Compensation Expense (Details) - RSUs $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share based compensation expense | $ 8.7 |
Weighted-average period of unrecognized share based compensation expense | 1 year 9 months 18 days |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Percentage of dividend withholding tax | 5.00% | 5.00% | 5.00% | ||
Dividend distributions to intermediate holding company | $ 0 | $ 0 | $ 0 | ||
Increase to deferred tax asset for additional discount | $ 8,800,000 | ||||
Deferred tax liability | $ 8,800,000 | ||||
Transition provision expense | $ 1,100,000 | ||||
Income tax expense recognized over next six years | 5,700,000 | ||||
Income tax expense recognized over next six years per year | 950,000 | ||||
U.S. income before Federal income taxes | $ (89,300,000) | 25,100,000 | 70,700,000 | ||
Percentage of excise tax on reinsurance premiums paid | 1.00% | ||||
Payment of federal excise taxes | $ 338,000 | 468,000 | 586,000 | ||
Excise taxes paid | $ 1,500,000 | $ 1,200,000 | $ 1,500,000 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Federal income tax (benefit) expense at applicable statutory rates | $ (18,750) | $ 5,272 | $ 14,843 |
Tax-exempt investment income | (278) | (260) | (230) |
Dividends received deduction | (298) | (283) | (307) |
Excess tax benefits on share based compensation | (208) | (679) | (1,099) |
Provision to return and amended tax returns | (3,945) | 0 | 0 |
Base Erosion and Anti-Abuse Tax | 0 | 2,843 | 0 |
Other | 233 | 17 | 99 |
Federal income tax (benefit) expense | (23,246) | 6,910 | 13,306 |
U.S. state income tax expense | 11 | 203 | 222 |
Total income tax (benefit) expense | $ (23,235) | $ 7,113 | $ 13,528 |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Accrued compensation expenses | $ 2,604 | $ 2,308 |
Reserve for losses and loss adjustment expenses | 18,016 | 14,265 |
Unearned premiums | 10,675 | 9,753 |
Share based compensation | 1,541 | 1,427 |
Allowance for credit losses | 2,516 | 2,130 |
Property and equipment | 144 | 213 |
Net operating loss carryforward | 15,221 | 0 |
Other | 7,053 | 4,810 |
Total deferred tax assets | 57,770 | 34,906 |
Deferred tax liabilities: | ||
Intangible assets | 7,289 | 7,324 |
Net unrealized gains | 6,626 | 12,201 |
Deferred policy acquisition costs | 4,494 | 4,786 |
Equity method investments | 10,257 | 8,839 |
Other | 2,674 | 2,861 |
Total deferred tax liabilities | 31,340 | 36,011 |
Net deferred tax assets (liabilities) | $ 26,430 | |
Net deferred tax assets (liabilities) | $ (1,105) |
Other Operating Expenses and _3
Other Operating Expenses and Other Expenses - Summary of Other Operating Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Operating Expenses And Other Expenses [Abstract] | |||
Amortization of policy acquisition costs | $ 69,663 | $ 75,578 | $ 83,893 |
Other underwriting expenses of the insurance segments | 67,420 | 60,502 | 59,351 |
Other operating expenses of the Corporate and Other segment | 27,609 | 29,418 | 27,664 |
Total | $ 164,692 | $ 165,498 | $ 170,908 |
Other Operating Expenses and _4
Other Operating Expenses and Other Expenses - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Operating Expenses And Other Expenses [Abstract] | |||
Other expenses | $ 2,585 | $ 2,138 | $ 1,055 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Maximum matching employer contribution | 6.00% | ||
Expense associated with Savings Plans | $ 3.4 | $ 3.5 | $ 3.2 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) | Sep. 27, 2021USD ($) | Jul. 01, 2021USD ($) | Dec. 31, 2021USD ($)credit_facility | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Contingent Liabilities [Line Items] | |||||
Reinsurance recoverable on unpaid losses, net | $ 1,348,628,000 | $ 805,684,000 | |||
Reinsurance recoverable on paid losses | 82,235,000 | 46,118,000 | |||
Loss Portfolio Transfer | Excess and Surplus Lines | |||||
Contingent Liabilities [Line Items] | |||||
Reinsurance recoverable on unpaid losses, net | 256,452,000 | $ 0 | $ 0 | ||
Aleka | Excess and Surplus Lines | Commercial Auto Business | LPT Trust | |||||
Contingent Liabilities [Line Items] | |||||
Cash equivalent collateral held in trust arrangement | 251,700,000 | ||||
Aleka | Excess and Surplus Lines | Commercial Auto Business | LPT Trust And Loss Fund Trust | |||||
Contingent Liabilities [Line Items] | |||||
Cash equivalent collateral held in trust arrangement | 279,900,000 | ||||
Aleka | Excess and Surplus Lines | Commercial Auto Business | Loss Fund Trust | |||||
Contingent Liabilities [Line Items] | |||||
Cash equivalent collateral held in trust arrangement | 28,200,000 | ||||
Aleka | Loss Portfolio Transfer | Excess and Surplus Lines | Commercial Auto Business | |||||
Contingent Liabilities [Line Items] | |||||
Reinsurance premium | $ 345,100,000 | ||||
Required collateral percentage | 102.00% | ||||
Reinsurance recoverables | 272,300,000 | ||||
Reinsurance recoverable on unpaid losses, net | 256,500,000 | ||||
Reinsurance recoverable on paid losses | 15,900,000 | ||||
Rasier And Aleka | Excess and Surplus Lines | Commercial Auto Business | Loss Fund Trust | |||||
Contingent Liabilities [Line Items] | |||||
Cash equivalent collateral held in trust arrangement | 102,000,000 | ||||
Rasier | Excess and Surplus Lines | Commercial Auto Business | Indemnity Trust | |||||
Contingent Liabilities [Line Items] | |||||
Cash equivalent collateral held in trust arrangement | 584,600,000 | ||||
Cash Equivalent Collateral Returned to Trust | $ 691,300,000 | ||||
Rasier | Excess and Surplus Lines | Commercial Auto Business | Indemnity Trust And Loss Fund Trust | |||||
Contingent Liabilities [Line Items] | |||||
Cash equivalent collateral held in trust arrangement | 653,700,000 | ||||
Rasier | Excess and Surplus Lines | Commercial Auto Business | Loss Fund Trust | |||||
Contingent Liabilities [Line Items] | |||||
Cash equivalent collateral held in trust arrangement | $ 69,200,000 | ||||
JRG Reinsurance Company, Ltd. | |||||
Contingent Liabilities [Line Items] | |||||
Number of credit facilities | credit_facility | 3 | ||||
Third-party Reinsureds | JRG Reinsurance Company, Ltd. | |||||
Contingent Liabilities [Line Items] | |||||
Total amount deposited in trust accounts | $ 382,400,000 | ||||
Letter Of Credit 30 Million | JRG Reinsurance Company, Ltd. | |||||
Contingent Liabilities [Line Items] | |||||
Letters of credit facility, amount | 30,000,000 | ||||
Amount of letters of credit issued | 5,900,000 | ||||
Assets deposited for securing letters of credit | 9,600,000 | ||||
2013 Facility | JRG Reinsurance Company, Ltd. | |||||
Contingent Liabilities [Line Items] | |||||
Amount of letters of credit issued | 34,300,000 | ||||
Assets deposited for securing letters of credit | 53,200,000 | ||||
2017 Facility | JRG Reinsurance Company, Ltd. | |||||
Contingent Liabilities [Line Items] | |||||
Amount of letters of credit issued | 20,500,000 | ||||
Assets deposited for securing letters of credit | $ 33,100,000 |
Other Comprehensive (Loss) In_3
Other Comprehensive (Loss) Income - Summary of Components of Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Unrealized (losses) gains arising during the period, before U.S. income taxes | $ (54,132) | $ 58,704 | $ 51,381 |
U.S. income taxes | 6,189 | (6,967) | (3,510) |
Unrealized (losses) gains arising during the period, net of U.S. income taxes | (47,943) | 51,737 | 47,871 |
Less reclassification adjustment: | |||
Net realized investment gains | 4,924 | 1,045 | 1,081 |
U.S. income taxes | (946) | (93) | (152) |
Reclassification adjustment for investment gains realized in net income | 3,978 | 952 | 929 |
Other comprehensive (loss) income | $ (51,921) | $ 50,785 | $ 46,942 |
Other Comprehensive (Loss) In_4
Other Comprehensive (Loss) Income - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Net realized investment gains | $ 4,924 | $ 1,045 | $ 1,081 |
Bank loan participations net realized and unrealized gains (losses) | 5,828 | (15,414) | (10,056) |
Equity securities net realized and unrealized gains (losses) | $ 4,807 | $ (1,656) | $ 6,036 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)CompanybrokerUnderwriting_divisionSegmentagency | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 4 | ||
Fee income | $ 4,500 | $ 3,400 | $ 9,500 |
Number of underwriting divisions | Underwriting_division | 15 | ||
Gross written premiums | $ 1,507,299 | 1,257,000 | 1,470,735 |
Excess and Surplus Lines | |||
Segment Reporting Information [Line Items] | |||
Fee income | $ 0 | 1,600 | 9,100 |
Number of underwriting divisions | Underwriting_division | 13 | ||
Number of brokers | broker | 3 | ||
Gross written premiums | $ 833,657 | 699,143 | 922,320 |
Excess and Surplus Lines | Broker one | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 239,100 | ||
Consolidated gross written premiums percentage | 15.90% | ||
Gross written premiums percentage | 28.70% | ||
Excess and Surplus Lines | Broker two | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 197,300 | ||
Consolidated gross written premiums percentage | 13.10% | ||
Gross written premiums percentage | 23.70% | ||
Excess and Surplus Lines | Broker three | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 132,500 | ||
Consolidated gross written premiums percentage | 8.80% | ||
Gross written premiums percentage | 15.90% | ||
Specialty Admitted Insurance | |||
Segment Reporting Information [Line Items] | |||
Fee income | $ 4,500 | 1,800 | 421 |
Number of underwriting divisions | Underwriting_division | 1 | ||
Gross written premiums | $ 491,561 | 408,691 | 387,642 |
Number of agencies | agency | 2 | ||
Specialty Admitted Insurance | Agency one | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 124,100 | ||
Consolidated gross written premiums percentage | 8.20% | ||
Gross written premiums percentage | 25.20% | ||
Specialty Admitted Insurance | Agency two | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 89,500 | ||
Consolidated gross written premiums percentage | 5.90% | ||
Gross written premiums percentage | 18.20% | ||
Casualty Reinsurance | |||
Segment Reporting Information [Line Items] | |||
Number of underwriting divisions | Underwriting_division | 1 | ||
Number of brokers | broker | 3 | ||
Gross written premiums | $ 182,081 | $ 149,166 | $ 160,773 |
Number of unaffiliated ceding companies | Company | 3 | ||
Casualty Reinsurance | Broker one | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 80,100 | ||
Consolidated gross written premiums percentage | 5.30% | ||
Gross written premiums percentage | 44.00% | ||
Casualty Reinsurance | Broker two | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 53,900 | ||
Consolidated gross written premiums percentage | 3.60% | ||
Gross written premiums percentage | 29.60% | ||
Casualty Reinsurance | Broker three | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 20,000 | ||
Consolidated gross written premiums percentage | 1.30% | ||
Gross written premiums percentage | 11.00% | ||
Casualty Reinsurance | Unaffiliated ceding company one | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 76,600 | ||
Consolidated gross written premiums percentage | 5.10% | ||
Gross written premiums percentage | 42.10% | ||
Casualty Reinsurance | Unaffiliated ceding company two | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 22,900 | ||
Consolidated gross written premiums percentage | 1.50% | ||
Gross written premiums percentage | 12.60% | ||
Casualty Reinsurance | Unaffiliated ceding company three | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 16,200 | ||
Consolidated gross written premiums percentage | 1.10% | ||
Gross written premiums percentage | 8.90% |
Segment Information - Summary o
Segment Information - Summary of Segment Results (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 1,507,299 | $ 1,257,000 | $ 1,470,735 |
Net earned premiums | 695,594 | 606,806 | 823,746 |
Segment revenues | 772,880 | 668,689 | 907,125 |
Net investment income | 56,865 | 73,368 | 75,652 |
Interest expense | 8,922 | 10,033 | 10,596 |
Underwriting (loss) profit of operating segments | (229,337) | (4,427) | 17,909 |
Segment goodwill | 181,831 | 181,831 | 181,831 |
Segment assets | 4,948,550 | 5,063,072 | 5,024,405 |
Excess and Surplus Lines | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 833,657 | 699,143 | 922,320 |
Net earned premiums | 486,000 | 415,168 | 625,528 |
Segment revenues | 508,829 | 429,918 | 657,501 |
Net investment income | 13,811 | 18,664 | 21,358 |
Interest expense | 0 | 0 | 0 |
Underwriting (loss) profit of operating segments | (121,478) | 9,752 | 19,157 |
Segment goodwill | 181,831 | 181,831 | 181,831 |
Segment assets | 1,997,192 | 2,208,344 | 2,481,934 |
Specialty Admitted Insurance | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 491,561 | 408,691 | 387,642 |
Net earned premiums | 75,371 | 57,505 | 54,338 |
Segment revenues | 83,855 | 62,790 | 61,241 |
Net investment income | 3,044 | 3,392 | 3,802 |
Interest expense | 0 | 0 | 0 |
Underwriting (loss) profit of operating segments | 9,667 | 4,185 | 5,913 |
Segment goodwill | 0 | 0 | 0 |
Segment assets | 1,062,125 | 907,604 | 786,433 |
Casualty Reinsurance | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 182,081 | 149,166 | 160,773 |
Net earned premiums | 134,223 | 134,133 | 143,880 |
Segment revenues | 179,354 | 166,837 | 183,700 |
Net investment income | 39,445 | 42,554 | 46,325 |
Interest expense | 0 | 0 | 0 |
Underwriting (loss) profit of operating segments | (117,526) | (18,364) | (7,161) |
Segment goodwill | 0 | 0 | 0 |
Segment assets | 1,857,462 | 1,899,328 | 1,699,473 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 0 | 0 | 0 |
Net earned premiums | 0 | 0 | 0 |
Segment revenues | 842 | 9,144 | 4,683 |
Net investment income | 565 | 8,758 | 4,167 |
Interest expense | 8,922 | 10,033 | 10,596 |
Underwriting (loss) profit of operating segments | 0 | 0 | 0 |
Segment goodwill | 0 | 0 | 0 |
Segment assets | $ 31,771 | $ 47,796 | $ 56,565 |
Segment Information - Reconcili
Segment Information - Reconciliation of Operating Segments by Individual Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total underwriting (loss) profit of operating segments | $ (229,337) | $ (4,427) | $ 17,909 |
Other operating expenses of the Corporate and Other segment | (27,609) | (29,418) | (27,664) |
Underwriting loss | (256,946) | (33,845) | (9,755) |
Net investment income | 56,865 | 73,368 | 75,652 |
Net realized and unrealized gains (losses) on investments | 15,564 | (16,030) | (2,919) |
Other income | 353 | 1,153 | 1,137 |
Other expenses | (2,585) | (2,138) | (1,055) |
Interest expense | (8,922) | (10,033) | (10,596) |
Amortization of intangible assets | (363) | (538) | (597) |
(Loss) income before income taxes | (196,034) | 11,937 | 51,867 |
Excess and Surplus Lines | |||
Segment Reporting Information [Line Items] | |||
Total underwriting (loss) profit of operating segments | (121,478) | 9,752 | 19,157 |
Net investment income | 13,811 | 18,664 | 21,358 |
Interest expense | 0 | 0 | 0 |
Amortization of intangible assets | (363) | (366) | (362) |
Specialty Admitted Insurance | |||
Segment Reporting Information [Line Items] | |||
Total underwriting (loss) profit of operating segments | 9,667 | 4,185 | 5,913 |
Net investment income | 3,044 | 3,392 | 3,802 |
Interest expense | 0 | 0 | 0 |
Amortization of intangible assets | 0 | (172) | (235) |
Casualty Reinsurance | |||
Segment Reporting Information [Line Items] | |||
Total underwriting (loss) profit of operating segments | (117,526) | (18,364) | (7,161) |
Net investment income | 39,445 | 42,554 | 46,325 |
Interest expense | $ 0 | $ 0 | $ 0 |
Segment Information - Gross Wri
Segment Information - Gross Written Premiums (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total gross written premiums | $ 1,507,299 | $ 1,257,000 | $ 1,470,735 |
Excess and Surplus Lines | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | 833,657 | 699,143 | 922,320 |
Excess and Surplus Lines | Excess Casualty | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | 285,082 | 213,037 | 118,954 |
Excess and Surplus Lines | General Casualty | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | 140,608 | 125,433 | 115,832 |
Excess and Surplus Lines | Manufacturers and Contractors | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | 139,720 | 122,880 | 105,096 |
Excess and Surplus Lines | Excess Property | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | 47,241 | 37,332 | 31,606 |
Excess and Surplus Lines | Energy | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | 46,216 | 51,109 | 45,442 |
Excess and Surplus Lines | Life Sciences | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | 35,935 | 35,163 | 24,462 |
Excess and Surplus Lines | Commercial Auto | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | 34,630 | 30,029 | 405,565 |
Excess and Surplus Lines | Allied Health | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | 35,192 | 26,918 | 26,713 |
Excess and Surplus Lines | Small Business | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | 32,593 | 24,790 | 19,725 |
Excess and Surplus Lines | Environmental | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | 17,050 | 17,753 | 16,539 |
Excess and Surplus Lines | Professional Liability | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | 8,104 | 6,881 | 6,441 |
Excess and Surplus Lines | Sports and Entertainment | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | 9,442 | 6,118 | 4,212 |
Excess and Surplus Lines | Medical Professionals | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | 1,844 | 1,700 | 1,733 |
Specialty Admitted Insurance | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | 491,561 | 408,691 | 387,642 |
Casualty Reinsurance | |||
Segment Reporting Information [Line Items] | |||
Total gross written premiums | $ 182,081 | $ 149,166 | $ 160,773 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | $ 1,677,561 | $ 1,783,642 |
Equity securities: | ||
Bank loan participations | 156,043 | 147,604 |
Fixed maturity securities | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 1,677,561 | 1,783,642 |
State and municipal | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 333,717 | 296,405 |
Residential mortgage-backed | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 246,631 | 293,848 |
Corporate | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 732,335 | 766,822 |
Commercial mortgage and asset-backed | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 304,488 | 326,719 |
U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 60,390 | 99,848 |
Recurring basis | ||
Equity securities: | ||
Bank loan participations | 156,043 | 147,604 |
Short-term investments | 136,563 | 130,289 |
Recurring basis | Fixed maturity securities | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 1,677,561 | 1,783,642 |
Recurring basis | State and municipal | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 333,717 | 296,405 |
Recurring basis | Residential mortgage-backed | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 246,631 | 293,848 |
Recurring basis | Corporate | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 732,335 | 766,822 |
Recurring basis | Commercial mortgage and asset-backed | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 304,488 | 326,719 |
Recurring basis | U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 60,390 | 99,848 |
Recurring basis | Equity securities | ||
Equity securities: | ||
Equity securities | 108,410 | 88,975 |
Recurring basis | Preferred stock | ||
Equity securities: | ||
Equity securities | 63,612 | 67,495 |
Recurring basis | Common stock | ||
Equity securities: | ||
Equity securities | 44,798 | 21,480 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Equity securities: | ||
Bank loan participations | 0 | 0 |
Short-term investments | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Fixed maturity securities | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 59,988 | 99,384 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | State and municipal | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Residential mortgage-backed | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Corporate | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Commercial mortgage and asset-backed | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 59,988 | 99,384 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Equity securities | ||
Equity securities: | ||
Equity securities | 41,244 | 15,793 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Preferred stock | ||
Equity securities: | ||
Equity securities | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Common stock | ||
Equity securities: | ||
Equity securities | 41,244 | 15,793 |
Recurring basis | Significant Other Observable Inputs Level 2 | ||
Equity securities: | ||
Bank loan participations | 156,043 | 147,296 |
Short-term investments | 136,563 | 130,289 |
Recurring basis | Significant Other Observable Inputs Level 2 | Fixed maturity securities | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 1,617,573 | 1,684,258 |
Recurring basis | Significant Other Observable Inputs Level 2 | State and municipal | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 333,717 | 296,405 |
Recurring basis | Significant Other Observable Inputs Level 2 | Residential mortgage-backed | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 246,631 | 293,848 |
Recurring basis | Significant Other Observable Inputs Level 2 | Corporate | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 732,335 | 766,822 |
Recurring basis | Significant Other Observable Inputs Level 2 | Commercial mortgage and asset-backed | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 304,488 | 326,719 |
Recurring basis | Significant Other Observable Inputs Level 2 | U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 402 | 464 |
Recurring basis | Significant Other Observable Inputs Level 2 | Equity securities | ||
Equity securities: | ||
Equity securities | 67,064 | 72,510 |
Recurring basis | Significant Other Observable Inputs Level 2 | Preferred stock | ||
Equity securities: | ||
Equity securities | 63,612 | 67,495 |
Recurring basis | Significant Other Observable Inputs Level 2 | Common stock | ||
Equity securities: | ||
Equity securities | 3,452 | 5,015 |
Recurring basis | Significant Unobservable Inputs Level 3 | ||
Equity securities: | ||
Bank loan participations | 0 | 308 |
Short-term investments | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | Fixed maturity securities | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | State and municipal | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | Residential mortgage-backed | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | Corporate | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | Commercial mortgage and asset-backed | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 0 | |
Recurring basis | Significant Unobservable Inputs Level 3 | U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Fixed maturity securities, available-for-sale: | ||
Fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | Equity securities | ||
Equity securities: | ||
Equity securities | 102 | 672 |
Recurring basis | Significant Unobservable Inputs Level 3 | Preferred stock | ||
Equity securities: | ||
Equity securities | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | Common stock | ||
Equity securities: | ||
Equity securities | $ 102 | $ 672 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Available-for-Sale Fixed Maturity Securities Measured at Fair Value on a Recurring Basis (Details) - Available-for-sale fixed maturity securities and equity securities - Fair Value, Recurring - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 980 | $ 43 | $ 4,442 |
Transfers in to Level 3 | 8 | 358 | 3,010 |
Transfers out of Level 3 | (6) | (767) | (7,238) |
Purchases | 0 | 1,417 | 0 |
Sales | (426) | 0 | 0 |
Maturities, calls and paydowns | (379) | (17) | 0 |
Amortization of discount | 0 | 2 | 0 |
Total gains or losses (realized/unrealized) - Included in earnings | (75) | (56) | (171) |
Total gains or losses (realized/unrealized) - Included in other comprehensive income | 0 | 0 | 0 |
Ending balance | $ 102 | $ 980 | $ 43 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | Dec. 31, 2021security | Dec. 31, 2020securitybank_loan_participation | Dec. 31, 2019security |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of bank loan participations held | bank_loan_participation | 1 | ||
Number of equity securities held | security | 1 | 2 | 1 |
Number of equity securities transferred | security | 1 | 1 | 1 |
Number of bank loan participations transferred | bank_loan_participation | 2 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of the Carrying Value and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||||
Fixed maturity securities, available-for-sale | $ 1,677,561 | $ 1,783,642 | ||
Equity securities | 108,410 | 88,975 | ||
Bank loan participations | 156,043 | 147,604 | ||
Cash and cash equivalents | 190,123 | 162,260 | ||
Restricted cash equivalents | 102,005 | 859,920 | $ 1,199,164 | $ 0 |
Short-term investments | 136,563 | 130,289 | ||
Liabilities | ||||
Senior debt | 262,300 | 262,300 | ||
Junior subordinated debt | 104,055 | 104,055 | ||
Carrying Value | ||||
Assets | ||||
Fixed maturity securities, available-for-sale | 1,677,561 | 1,783,642 | ||
Equity securities | 108,410 | 88,975 | ||
Bank loan participations | 156,043 | 147,604 | ||
Cash and cash equivalents | 190,123 | 162,260 | ||
Restricted cash equivalents | 102,005 | 859,920 | ||
Short-term investments | 136,563 | 130,289 | ||
Other invested assets – notes receivable | 4,500 | 4,500 | ||
Liabilities | ||||
Senior debt | 262,300 | 262,300 | ||
Junior subordinated debt | 104,055 | 104,055 | ||
Fair Value | ||||
Assets | ||||
Fixed maturity securities, available-for-sale | 1,677,561 | 1,783,642 | ||
Equity securities | 108,410 | 88,975 | ||
Bank loan participations | 156,043 | 147,604 | ||
Cash and cash equivalents | 190,123 | 162,260 | ||
Restricted cash equivalents | 102,005 | 859,920 | ||
Short-term investments | 136,563 | 130,289 | ||
Other invested assets – notes receivable | 4,834 | 5,302 | ||
Liabilities | ||||
Senior debt | 252,213 | 250,953 | ||
Junior subordinated debt | $ 106,635 | $ 110,612 |
Statutory Matters - Schedule of
Statutory Matters - Schedule of Statutory Accounting (Details) - United States - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory Accounting Practices [Line Items] | |||
Statutory net (loss) income | $ (3,847) | $ (710) | $ 3,586 |
Statutory capital and surplus | 325,368 | 286,449 | 266,715 |
Minimum required statutory capital and surplus | $ 111,031 | $ 100,170 | $ 111,208 |
Statutory Matters - Narrative (
Statutory Matters - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)subsidiary | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Statutory Accounting Practices [Line Items] | |||
Number of subsidiaries | subsidiary | 2 | ||
Casualty Reinsurance | Bermuda | |||
Statutory Accounting Practices [Line Items] | |||
Minimum statutory solvency margin | $ 167.1 | $ 172.9 | |
Actual statutory capital and surplus | 518.7 | 615.2 | |
Statutory net (loss) income | $ (141.5) | 20.8 | $ 53.2 |
Combined ECR | $ 419.7 | ||
Minimum liquidity ratio | 75.00% |
Dividend Restrictions (Details)
Dividend Restrictions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Statutory Accounting Practices [Line Items] | |
Percentage of dividend withholding tax for distributions | 5.00% |
Percentage of dividend distribution tax | 30.00% |
United States | |
Statutory Accounting Practices [Line Items] | |
Dividend limitations percentage of statutory surplus | 10.00% |
Maximum amount of dividends available without regulatory approval | $ 27.2 |
Bermuda | |
Statutory Accounting Practices [Line Items] | |
Maximum amount of dividends and return of capital available | $ 129.7 |
Other Related Party Transacti_2
Other Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Chief Operating Officer | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amounts of transaction | $ 146 | ||
Minority interest in partnership | |||
Related Party Transaction [Line Items] | |||
Operating costs under lease | $ 2,100 | $ 1,900 | $ 2,100 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2022 | Mar. 14, 2022 | Feb. 24, 2022 | Feb. 23, 2022 | Feb. 21, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||||||||
Funds held | $ 97,360 | $ 859,920 | |||||||
Reserves for losses and loss adjustment expenses | $ 325,778 | $ 92,204 | $ 69,008 | ||||||
Preferred stock par value (in dollars per share) | $ 0.00125 | $ 0.00125 | |||||||
Casualty Reinsurance | |||||||||
Subsequent Event [Line Items] | |||||||||
Reserves for losses and loss adjustment expenses | $ 137,600 | ||||||||
Forecast | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends payable, date to be paid | Mar. 31, 2022 | ||||||||
Dividend payable, record date | Mar. 14, 2022 | ||||||||
Forecast | Loss Portfolio Transfer | JRG Reinsurance Company, Ltd. | Fortitude Reinsurance | |||||||||
Subsequent Event [Line Items] | |||||||||
Ceded premiums payable | $ 335,000 | $ 335,000 | |||||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends payable, per common share | $ 0.05 | ||||||||
Fair value of awards granted | $ 11,000 | ||||||||
Subsequent Event | Convertible Preferred Stock | Private Placement | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of common shares issued during period (in shares) | 150,000 | ||||||||
Preferred stock, dividend rate, percentage | 7.00% | ||||||||
Preferred stock par value (in dollars per share) | $ 0.00125 | ||||||||
Sale of stock, consideration received on transaction | $ 150,000 | ||||||||
Per share price (in dollars per share) | $ 1,000 | ||||||||
Subsequent Event | Loss Portfolio Transfer | JRG Reinsurance Company, Ltd. | Fortitude Reinsurance | |||||||||
Subsequent Event [Line Items] | |||||||||
Aggregate coverage limit | $ 400,000 | ||||||||
Funds held | 310,000 | ||||||||
Payments for reinsurance | $ 25,000 | ||||||||
Crediting rate on funds withheld | 2.00% | ||||||||
Subsequent Event | Loss Portfolio Transfer | JRG Reinsurance Company, Ltd. | Fortitude Reinsurance | Casualty Reinsurance | |||||||||
Subsequent Event [Line Items] | |||||||||
Reserves for losses and loss adjustment expenses | $ 6,800 |
SCHEDULE I - Summary of Inves_2
SCHEDULE I - Summary of Investments - Other than Investments in Related Parties (Details) $ in Thousands | Dec. 31, 2021USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amount at which shown on Balance Sheet | $ 2,093,825 |
Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 95,783 |
Fair Value | 108,410 |
Amount at which shown on Balance Sheet | 108,410 |
Preferred stock | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 51,584 |
Fair Value | 63,612 |
Amount at which shown on Balance Sheet | 63,612 |
Common stock | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 44,199 |
Fair Value | 44,798 |
Amount at which shown on Balance Sheet | 44,798 |
Bank loan participations | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 156,505 |
Fair Value | 156,043 |
Amount at which shown on Balance Sheet | 156,043 |
Short-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 136,563 |
Fair Value | 136,563 |
Amount at which shown on Balance Sheet | 136,563 |
Other invested assets | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amount at which shown on Balance Sheet | 15,248 |
Available-for-sale Securities | Fixed maturity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 1,643,865 |
Fair Value | 1,677,561 |
Amount at which shown on Balance Sheet | 1,677,561 |
Available-for-sale Securities | State and municipal | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 323,773 |
Fair Value | 333,717 |
Amount at which shown on Balance Sheet | 333,717 |
Available-for-sale Securities | Residential mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 246,586 |
Fair Value | 246,631 |
Amount at which shown on Balance Sheet | 246,631 |
Available-for-sale Securities | Corporate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 711,930 |
Fair Value | 732,335 |
Amount at which shown on Balance Sheet | 732,335 |
Available-for-sale Securities | Commercial mortgage and asset-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 301,247 |
Fair Value | 304,488 |
Amount at which shown on Balance Sheet | 304,488 |
Available-for-sale Securities | U.S. Treasury securities and obligations guaranteed by the U.S. government | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 60,329 |
Fair Value | 60,390 |
Amount at which shown on Balance Sheet | $ 60,390 |
SCHEDULE II - Condensed Finan_2
SCHEDULE II - Condensed Financial Information of Registrant - Balance Sheets (Parent Company) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||||
Cash and cash equivalents | $ 190,123 | $ 162,260 | ||
Other assets | 82,409 | 82,115 | ||
Total assets | 4,948,550 | 5,063,072 | $ 5,024,405 | |
Liabilities: | ||||
Accrued expenses | 57,920 | 55,989 | ||
Senior debt | 262,300 | 262,300 | ||
Junior subordinated debt | 104,055 | 104,055 | ||
Other liabilities | 89,911 | 51,213 | ||
Total liabilities | 4,223,188 | 4,267,464 | ||
Commitments and contingent liabilities | ||||
Shareholders’ equity: | ||||
Class A common shares | 7 | 6 | ||
Additional paid-in capital | 862,040 | 664,476 | ||
Retained (deficit) earnings | (166,663) | 49,227 | ||
Accumulated other comprehensive income | 29,978 | 81,899 | ||
Total shareholders’ equity | 725,362 | 795,608 | 778,581 | $ 709,241 |
Total liabilities and shareholders’ equity | 4,948,550 | 5,063,072 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 157 | 571 | $ 1,521 | $ 240 |
Investment in subsidiaries | 1,003,762 | 1,145,887 | ||
Due from subsidiaries | 3,356 | 1,140 | ||
Other assets | 3,197 | 3,116 | ||
Total assets | 1,010,472 | 1,150,714 | ||
Liabilities: | ||||
Accrued expenses | 1,419 | 1,824 | ||
Senior debt | 247,300 | 247,300 | ||
Junior subordinated debt | 15,928 | 15,928 | ||
Notes payable to subsidiary | 0 | 70,000 | ||
Due to subsidiaries | 19,847 | 19,391 | ||
Other liabilities | 616 | 663 | ||
Total liabilities | 285,110 | 355,106 | ||
Commitments and contingent liabilities | ||||
Shareholders’ equity: | ||||
Class A common shares | 7 | 6 | ||
Additional paid-in capital | 862,040 | 664,476 | ||
Retained (deficit) earnings | (166,663) | 49,227 | ||
Accumulated other comprehensive income | 29,978 | 81,899 | ||
Total shareholders’ equity | 725,362 | 795,608 | ||
Total liabilities and shareholders’ equity | $ 1,010,472 | $ 1,150,714 |
SCHEDULE II - Condensed Finan_3
SCHEDULE II - Condensed Financial Information of Registrant - Statements of (Loss) Income and Comprehensive (Loss) Income (Parent Company) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Other income | $ 4,857 | $ 4,545 | $ 10,646 |
Total revenues | 772,880 | 668,689 | 907,125 |
Expenses: | |||
Other operating expenses | 164,692 | 165,498 | 170,908 |
Other expenses | 2,585 | 2,138 | 1,055 |
Interest expense | 8,922 | 10,033 | 10,596 |
Equity in net (loss) income of subsidiaries | 918 | 3,208 | 4,598 |
Net (loss) income | (172,799) | 4,824 | 38,339 |
Other comprehensive (loss) income: | |||
Total comprehensive (loss) income | (224,720) | 55,609 | 85,281 |
Parent Company | |||
Revenues: | |||
Other income | 39 | 45 | 61 |
Total revenues | 39 | 45 | 61 |
Expenses: | |||
Other operating expenses | 11,632 | 14,960 | 14,267 |
Other expenses | 469 | 0 | 0 |
Interest expense | 5,532 | 6,234 | 5,047 |
Total expenses | 17,633 | 21,194 | 19,314 |
Loss before equity in net income of subsidiaries | (17,594) | (21,149) | (19,253) |
Equity in net (loss) income of subsidiaries | (155,205) | 25,973 | 57,592 |
Net (loss) income | (172,799) | 4,824 | 38,339 |
Other comprehensive (loss) income: | |||
Equity in other comprehensive (losses) earnings of subsidiaries | (51,921) | 50,785 | 46,942 |
Total comprehensive (loss) income | $ (224,720) | $ 55,609 | $ 85,281 |
SCHEDULE II - Condensed Finan_4
SCHEDULE II - Condensed Financial Information of Registrant - Statements of Cash Flows (Parent Company) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Operating activities | ||||
Net (loss) income | $ (172,799) | $ 4,824 | $ 38,339 | |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||||
Provision for depreciation and amortization | 4,715 | 5,019 | 4,063 | |
Share based compensation expense | 6,658 | 7,625 | 7,178 | |
Net cash provided by (used in) operating activities | [1] | (913,546) | (273,830) | 1,489,022 |
Investing activities | ||||
Net cash provided by (used in) investing activities | 35,823 | (175,991) | (263,359) | |
Financing activities | ||||
Dividends paid | (43,236) | (37,051) | (36,720) | |
Senior debt issuance | 0 | 164,000 | 60,000 | |
Senior debt repayments | 0 | (60,000) | (20,000) | |
Issuances of common shares - public offering | 192,107 | 0 | 0 | |
Issuances of common shares under equity incentive plans | 1,877 | 2,580 | 8,286 | |
Common share repurchases | (3,077) | (3,604) | (2,899) | |
Net cash provided by financing activities | 147,671 | 65,925 | 7,956 | |
Change in cash, cash equivalents, and restricted cash equivalents | (730,052) | (383,896) | 1,233,619 | |
Cash and cash equivalents at beginning of year | 162,260 | |||
Cash and cash equivalents at end of year | 190,123 | 162,260 | ||
Supplemental information | ||||
Interest paid | 9,927 | 11,305 | 12,354 | |
Parent Company | ||||
Operating activities | ||||
Net (loss) income | (172,799) | 4,824 | 38,339 | |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||||
Provision for depreciation and amortization | 216 | 216 | 182 | |
Share based compensation expense | 6,658 | 7,625 | 7,178 | |
Equity in undistributed earnings of subsidiaries | 218,204 | (25,973) | (49,592) | |
Changes in operating assets and liabilities | (2,364) | 6,433 | (2,782) | |
Net cash provided by (used in) operating activities | 49,915 | (6,875) | (6,675) | |
Investing activities | ||||
Net cash provided by (used in) investing activities | 0 | 0 | 0 | |
Financing activities | ||||
Dividends paid | (43,236) | (37,051) | (36,720) | |
Senior debt issuance | 0 | 164,000 | 60,000 | |
Senior debt repayments | 0 | (60,000) | (20,000) | |
Subsidiary note issuance | 0 | 30,000 | 0 | |
Subsidiary note repayments | (70,000) | 0 | 0 | |
Contribution to subsidiary | (128,000) | (90,000) | 0 | |
Debt issue costs paid | 0 | 0 | (711) | |
Issuances of common shares - public offering | 192,107 | 0 | 0 | |
Issuances of common shares under equity incentive plans | 1,877 | 2,580 | 8,286 | |
Common share repurchases | (3,077) | (3,604) | (2,899) | |
Net cash provided by financing activities | (50,329) | 5,925 | 7,956 | |
Change in cash, cash equivalents, and restricted cash equivalents | (414) | (950) | 1,281 | |
Cash and cash equivalents at beginning of year | 571 | 1,521 | 240 | |
Cash and cash equivalents at end of year | 157 | 571 | 1,521 | |
Supplemental information | ||||
Interest paid | $ 5,954 | $ 6,530 | $ 5,710 | |
[1] | Cash (used in) provided by operating activities for the years ended December 31, 2021, 2020, and 2019 primarily reflects the activity in restricted cash equivalents above. As permitted under the agreements establishing the Indemnity Trust and the LPT Trust, we have withdrawn collateral from the Indemnity Trust and the LPT Trust to fund the Loss Fund Trust as required under the Administrative Services Agreement. Amounts on deposit in the Loss Fund Trust are included in restricted cash equivalents on the Company's consolidated balance sheets. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Amounts Recoverable from an Indemnifying Party and Reinsurer on Legacy Commercial Auto Book ”. Excluding the restricted cash activity above, cash (used in) provided by operating activities was $(155.6) million, $65.4 million, and $289.9 million for the years ended December 31, 2021, 2020, and 2019, respectively. The cash used in operating activities (excluding restricted cash equivalents) in 2021 was largely driven by the $317.6 million of reinsurance premium paid in September 2021 to effect the LPT transaction. |
SCHEDULE III - Supplementary _2
SCHEDULE III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | $ 68,526 | $ 62,953 | $ 62,006 |
Reserve for Losses and Loss Adjustment Expenses | 2,748,473 | 2,192,080 | 2,045,506 |
Unearned Premiums | 727,552 | 630,371 | 524,377 |
Net Earned Premiums | 695,594 | 606,806 | 823,746 |
Net Investment Income | 56,865 | 73,368 | 75,652 |
Losses and Loss Adjustment Expenses | 792,352 | 478,545 | 672,102 |
Amortization of Policy Acquisition Costs | 69,663 | 75,578 | 83,893 |
Other Operating Expenses | 164,692 | 165,498 | 170,908 |
Net Written Premiums | 744,380 | 647,774 | 896,150 |
Excess and Surplus Lines | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 26,297 | 25,875 | 24,428 |
Reserve for Losses and Loss Adjustment Expenses | 1,623,635 | 1,276,054 | 1,245,581 |
Unearned Premiums | 382,479 | 345,976 | 267,924 |
Net Earned Premiums | 486,000 | 415,168 | 625,528 |
Net Investment Income | 13,811 | 18,664 | 21,358 |
Losses and Loss Adjustment Expenses | 516,299 | 318,467 | 528,133 |
Amortization of Policy Acquisition Costs | 50,283 | 49,387 | 49,720 |
Other Operating Expenses | 91,179 | 88,520 | 87,326 |
Net Written Premiums | 501,250 | 450,346 | 685,814 |
Specialty Admitted Insurance | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | (4,889) | (3,073) | (2,902) |
Reserve for Losses and Loss Adjustment Expenses | 686,643 | 600,309 | 511,027 |
Unearned Premiums | 165,998 | 136,355 | 115,606 |
Net Earned Premiums | 75,371 | 57,505 | 54,338 |
Net Investment Income | 3,044 | 3,392 | 3,802 |
Losses and Loss Adjustment Expenses | 55,875 | 41,928 | 34,860 |
Amortization of Policy Acquisition Costs | (8,395) | (4,525) | (3,560) |
Other Operating Expenses | 14,333 | 13,213 | 13,986 |
Net Written Premiums | 83,935 | 59,884 | 58,637 |
Casualty Reinsurance | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 47,118 | 40,151 | 40,480 |
Reserve for Losses and Loss Adjustment Expenses | 438,195 | 315,717 | 288,898 |
Unearned Premiums | 179,075 | 148,040 | 140,847 |
Net Earned Premiums | 134,223 | 134,133 | 143,880 |
Net Investment Income | 39,445 | 42,554 | 46,325 |
Losses and Loss Adjustment Expenses | 220,178 | 118,150 | 109,109 |
Amortization of Policy Acquisition Costs | 27,775 | 30,716 | 37,733 |
Other Operating Expenses | 31,571 | 34,347 | 41,932 |
Net Written Premiums | 159,195 | 137,544 | 151,699 |
Corporate and Other | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 0 | 0 | 0 |
Reserve for Losses and Loss Adjustment Expenses | 0 | 0 | 0 |
Unearned Premiums | 0 | 0 | 0 |
Net Earned Premiums | 0 | 0 | 0 |
Net Investment Income | 565 | 8,758 | 4,167 |
Losses and Loss Adjustment Expenses | 0 | 0 | 0 |
Amortization of Policy Acquisition Costs | 0 | 0 | 0 |
Other Operating Expenses | 27,609 | 29,418 | 27,664 |
Net Written Premiums | $ 0 | $ 0 | $ 0 |
SCHEDULE IV - Reinsurance (Deta
SCHEDULE IV - Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Direct Amount | $ 1,322,034 | $ 1,103,994 | $ 1,305,948 |
Ceded to Other Companies | 762,919 | 609,226 | 574,585 |
Assumed from Other Companies | 185,265 | 153,006 | 164,787 |
Net written premiums | $ 744,380 | $ 647,774 | $ 896,150 |
Percentage of Amount Assumed to Net | 24.90% | 23.60% | 18.40% |
Excess and Surplus Lines | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Direct Amount | $ 833,657 | $ 699,143 | $ 922,320 |
Ceded to Other Companies | 332,407 | 248,797 | 236,506 |
Assumed from Other Companies | 0 | 0 | 0 |
Net written premiums | $ 501,250 | $ 450,346 | $ 685,814 |
Percentage of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |
Specialty Admitted Insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Direct Amount | $ 488,377 | $ 404,851 | $ 383,628 |
Ceded to Other Companies | 407,626 | 348,807 | 329,005 |
Assumed from Other Companies | 3,184 | 3,840 | 4,014 |
Net written premiums | $ 83,935 | $ 59,884 | $ 58,637 |
Percentage of Amount Assumed to Net | 3.80% | 6.40% | 6.80% |
Casualty Reinsurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Direct Amount | $ 0 | $ 0 | $ 0 |
Ceded to Other Companies | 22,886 | 11,622 | 9,074 |
Assumed from Other Companies | 182,081 | 149,166 | 160,773 |
Net written premiums | $ 159,195 | $ 137,544 | $ 151,699 |
Percentage of Amount Assumed to Net | 114.40% | 108.40% | 106.00% |
SCHEDULE V - Valuation and Qu_2
SCHEDULE V - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 8,652 | $ 12,840 | $ 3,948 |
Additions Amounts Charged to Expense | 9,722 | 3,318 | 11,421 |
Deductions Amounts Written Off or Disposals | (1,063) | (7,841) | (2,529) |
Balance at End of Period | 17,311 | 8,652 | 12,840 |
Adjusted Balance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 13,175 | ||
Balance at End of Period | 13,175 | ||
Allowance for Credit Losses on Premiums Receivable and Agents' Balances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 8,317 | 5,659 | 3,948 |
Additions Amounts Charged to Expense | 9,426 | 3,318 | 2,523 |
Deductions Amounts Written Off or Disposals | (1,063) | (660) | (812) |
Balance at End of Period | 16,680 | 8,317 | 5,659 |
Allowance for Credit Losses on Reinsurance Balances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 335 | 335 | |
Additions Amounts Charged to Expense | 296 | 0 | |
Deductions Amounts Written Off or Disposals | 0 | 0 | |
Balance at End of Period | 631 | 335 | 335 |
Allowance for Credit Losses on Bank Loans | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 0 | 7,181 | 0 |
Additions Amounts Charged to Expense | 0 | 0 | 8,898 |
Deductions Amounts Written Off or Disposals | 0 | (7,181) | (1,717) |
Balance at End of Period | $ 0 | $ 0 | $ 7,181 |
SCHEDULE VI - Supplementary I_2
SCHEDULE VI - Supplementary Information Concerning Property Casualty Insurance Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |||
Deferred policy acquisition costs | $ 68,526 | $ 62,953 | $ 62,006 |
Reserve for losses and loss adjustment expenses | 2,748,473 | 2,192,080 | 2,045,506 |
Unearned premiums | 727,552 | 630,371 | 524,377 |
Net earned premiums | 695,594 | 606,806 | 823,746 |
Net investment income | 56,865 | 73,368 | 75,652 |
Current year | 466,574 | 386,341 | 603,094 |
Prior years | 325,778 | 92,204 | 69,008 |
Total incurred losses and loss and adjustment expenses | 792,352 | 478,545 | 672,102 |
Amortization of policy acquisition costs | 69,663 | 75,578 | 83,893 |
Paid losses and loss adjustment expenses, net of reinsurance | 522,747 | 469,945 | 488,729 |
Net written premiums | $ 744,380 | $ 647,774 | $ 896,150 |
Uncategorized Items - jrvr-2021
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |