Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 06, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ARGO | |
Entity Registrant Name | Argo Group International Holdings, Ltd. | |
Entity Central Index Key | 0001091748 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 34,105,100 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | [1] |
Investments: | |||
Fixed maturities available-for-sale, at fair value (cost: 2019 - $3,580.1; 2018 - $3,529.1) | $ 3,573.3 | $ 3,460.4 | |
Equity securities, at fair value (cost: 2019 - $305.2; 2018 - $310.6) | 403.2 | 354.5 | |
Other investments (cost: 2019 - $473.7; 2018 - $482.0) | 483.3 | 489.8 | |
Short-term investments, at fair value (cost: 2019 - $444.1; 2018 - $482.3) | 443.7 | 482.3 | |
Total investments | 4,903.5 | 4,787 | |
Cash | 152.7 | 139.2 | |
Accrued investment income | 27.5 | 27.2 | |
Premiums receivable | 673.2 | 649.9 | |
Reinsurance recoverables | 2,661.4 | 2,688.3 | |
Goodwill | 177 | 177 | |
Intangible assets, net of accumulated amortization | 93.1 | 93.5 | |
Current income taxes receivable, net | 5 | 8.2 | |
Deferred acquisition costs, net | 167.9 | 167.3 | |
Ceded unearned premiums | 562.5 | 457.7 | |
Operating lease right-of-use assets | 115.3 | ||
Other assets | 415.4 | 362.9 | |
Total assets | 9,954.5 | 9,558.2 | |
Liabilities and Shareholders' Equity | |||
Reserves for losses and loss adjustment expenses | 4,668.9 | 4,654.6 | |
Unearned premiums | 1,344.5 | 1,300.9 | |
Accrued underwriting expenses and other liabilities | 248.2 | 261.9 | |
Ceded reinsurance payable, net | 1,047.1 | 970.5 | |
Funds held | 36.3 | 37.2 | |
Senior unsecured fixed rate notes | 139.9 | 139.8 | |
Other indebtedness | 183 | 183.4 | |
Junior subordinated debentures | 257 | 257 | |
Deferred tax liabilities, net | 20.7 | 6.2 | |
Operating lease liabilities | 128.3 | 0 | |
Total liabilities | 8,073.9 | 7,811.5 | |
Commitments and contingencies (Note 14) | |||
Shareholders' equity: | |||
Common shares - $1.00 par, 500,000,000 shares authorized; 45,365,223 and 45,276,999 shares issued at March 31, 2019 and December 31, 2018, respectively | 45.4 | 45.3 | |
Additional paid-in capital | 1,374.9 | 1,372 | |
Treasury shares (11,315,889 shares at March 31, 2019 and December 31, 2018, respectively) | (455.1) | (455.1) | |
Retained earnings | 943 | 862.6 | |
Accumulated other comprehensive loss, net of taxes | (27.6) | (78.1) | |
Total shareholders' equity | 1,880.6 | 1,746.7 | |
Total liabilities and shareholders' equity | $ 9,954.5 | $ 9,558.2 | |
[1] | Derived from audited consolidated financial statements. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Fixed maturities available-for-sale, cost | $ 3,580.1 | $ 3,529.1 |
Equity securities, cost | 305.2 | 310.6 |
Other investments, cost | 473.7 | 482 |
Short-term investments, cost | $ 444.1 | $ 482.3 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common shares, shares issued (in shares) | 45,365,223 | 45,276,999 |
Treasury shares (in shares) | 11,315,889 | 11,315,889 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Premiums and other revenue: | ||
Earned premiums | $ 420.5 | $ 414.7 |
Net investment income | 33.9 | 36 |
Fee and other income | 2.3 | 2 |
Net realized investment gains (losses): | ||
Net realized investment (losses) gains | (1.7) | 15.2 |
Change in fair value of equity securities | 54.2 | (30.9) |
Net realized investment gains (losses) | 52.5 | (15.7) |
Total revenue | 509.2 | 437 |
Expenses: | ||
Losses and loss adjustment expenses | 237.9 | 237.2 |
Underwriting, acquisition and insurance expenses | 160.7 | 160.2 |
Interest expense | 8.5 | 7.7 |
Fee and other expense | 1.3 | 2 |
Foreign currency exchange losses | 0.7 | 4.9 |
Total expenses | 409.1 | 412 |
Income before income taxes | 100.1 | 25 |
Income tax provision | 8.9 | 0.2 |
Net income | $ 91.2 | $ 24.8 |
Net income per common share: | ||
Basic (in dollars per share) | $ 2.68 | $ 0.73 |
Diluted (in dollars per share) | 2.63 | 0.71 |
Dividend declared per common share (in dollars per share) | $ 0.31 | $ 0.27 |
Weighted average common shares: | ||
Basic (in shares) | 33,984,329 | 33,868,749 |
Diluted (in shares) | 34,737,939 | 34,740,343 |
Net realized investment losses before other-than-temporary impairment losses | $ 56.8 | $ (14.7) |
Other-than-temporary impairment losses recognized in earnings: | ||
Other-than-temporary impairment losses on fixed maturities | (4.3) | (1) |
Impairment losses recognized in earnings | $ (4.3) | $ (1) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 91.2 | $ 24.8 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 0.2 | (1.1) |
Unrealized gains (losses) on securities: | ||
Gains (losses) arising during the year | 56.8 | (24.7) |
Reclassification adjustment for losses (gains) included in net income | 3.1 | (12.5) |
Other comprehensive income (loss) before tax | 60.1 | (38.3) |
Unrealized gains (losses) on securities: | ||
Gains (losses) arising during the year | 9.1 | (4) |
Reclassification adjustment for losses (gains) included in net income | 0.5 | (2.3) |
Income tax provision (benefit) related to other comprehensive income | 9.6 | (6.3) |
Other comprehensive income (loss), net of tax | 50.5 | (32) |
Comprehensive income (loss) | $ 141.7 | $ (7.2) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Shares [Member] | Additional Paid-In Capital [Member] | Treasury Shares [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) Member] | |
Beginning Balance at Dec. 31, 2017 | $ 1,819.7 | $ 40.4 | $ 1,129.1 | $ (423.4) | $ 977 | $ 96.6 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 24.8 | 24.8 | |||||
Other comprehensive income (loss)- Change in fair value of investment, net of tax | (30.9) | (30.9) | |||||
Other comprehensive income (loss)- Other | (1.1) | (1.1) | |||||
Repurchase of common shares | (18.6) | (18.6) | |||||
Activity under stock incentive plans | 4.6 | 0.2 | 4.4 | ||||
Retirement of common shares (tax payments on equity compensation) | (2.2) | (0.1) | (2.1) | ||||
Employee stock purchase plan | 0.4 | 0.4 | |||||
15% Stock Dividend | 4.4 | 232.9 | (237.3) | ||||
Cash dividends declared - common shares | (9.3) | (9.3) | |||||
Ending Balance at Mar. 31, 2018 | 1,787.4 | 44.9 | 1,364.7 | (442) | 851.8 | (32) | |
Beginning Balance at Dec. 31, 2018 | 1,746.7 | [1] | 45.3 | 1,372 | (455.1) | 862.6 | (78.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 91.2 | 91.2 | |||||
Other comprehensive income (loss)- Change in fair value of investment, net of tax | 50.3 | 50.3 | |||||
Other comprehensive income (loss)- Other | 0.2 | 0.2 | |||||
Activity under stock incentive plans | 4.2 | 0.1 | 4.1 | ||||
Retirement of common shares (tax payments on equity compensation) | (1.6) | (1.6) | |||||
Employee stock purchase plan | 0.4 | 0.4 | |||||
Cash dividends declared - common shares | (10.8) | (10.8) | |||||
Ending Balance at Mar. 31, 2019 | $ 1,880.6 | $ 45.4 | $ 1,374.9 | $ (455.1) | $ 943 | $ (27.6) | |
[1] | Derived from audited consolidated financial statements. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Statement of Stockholders' Equity [Abstract] | |
Common shares repurchased (in shares) | shares | 314,586 |
Repurchase of common shares, weighted average price (in dollars per share) | $ 59.23 |
Dividend declared per common share (in dollars per share) | $ 0.27 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Cash flows from operating activities: | |||
Net income | $ 91.2 | $ 24.8 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Amortization and depreciation | 6.7 | 6.1 | |
Share-based payments expense | 4.6 | 5.2 | |
Deferred income tax provision (benefit), net | 5.3 | (3.7) | |
Net realized investment (gains) loss | (52.5) | 15.7 | |
Undistributed earnings from alternative investment portfolio | (1.9) | (8.7) | |
Change in: | |||
Accrued investment income | (0.3) | (0.7) | |
Receivables | 1.8 | 0.9 | |
Deferred acquisition costs | (0.5) | (2.5) | |
Ceded unearned premiums | (104.9) | (93.8) | |
Reserves for losses and loss adjustment expenses | 15.2 | (42.7) | |
Unearned premiums | 43.9 | 47.7 | |
Ceded reinsurance payable and funds held | 75.8 | 133.9 | |
Income taxes | 3.2 | 3.6 | |
Accrued underwriting expenses and other liabilities | 6.7 | 106.4 | |
Other, net | (38.7) | (38.6) | |
Cash provided by operating activities | 55.6 | 153.6 | |
Cash flows from investing activities: | |||
Sales of fixed maturity investments | 235.5 | 469.2 | |
Maturities and mandatory calls of fixed maturity investments | 65.8 | 144.8 | |
Sales of equity securities | 15 | 51.7 | |
Sales of other investments | 22 | 34.5 | |
Purchases of fixed maturity investments | (358.9) | (616.5) | |
Purchases of equity securities | (12.1) | (60.1) | |
Purchases of other investments | (13.2) | (10.9) | |
Change in foreign regulatory deposits and voluntary pools | (0.3) | 5.1 | |
Change in short-term investments | 38.3 | (166.1) | |
Settlements of foreign currency exchange forward contracts | 3.6 | 1.7 | |
Purchases of fixed assets | (7.3) | (6.4) | |
Other, net | (20.1) | 8.9 | |
Cash used in investing activities | (31.7) | (128.5) | |
Cash flows from financing activities: | |||
Activity under stock incentive plans | 0.3 | 0.2 | |
Repurchase of Company's common shares | 0 | (18.6) | |
Payment of cash dividends to common shareholders | (10.8) | (9.3) | |
Cash used in financing activities | (10.5) | (27.7) | |
Effect of exchange rate changes on cash | 0.1 | (0.3) | |
Change in cash | 13.5 | (2.9) | |
Cash, beginning of year | 139.2 | [1] | 176.6 |
Cash, end of period | 152.7 | 173.7 | |
Ariscom [Member] | |||
Cash flows from investing activities: | |||
Cash acquired with acquisition of Ariscom | $ 0 | $ 15.6 | |
[1] | Derived from audited consolidated financial statements. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of Argo Group International Holdings, Ltd. (“Argo Group,” “we” or the “Company”) and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The preparation of interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The major estimates reflected in our consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses; reinsurance recoverables, including the reinsurance recoverables allowance for doubtful accounts; estimates of written and earned premiums; reinsurance premium receivable; fair value of investments and assessment of potential impairment; valuation of goodwill and intangibles and our deferred tax asset valuation allowance. Actual results could differ from those estimates. Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 , filed with the Securities and Exchange Commission on February 25, 2019. The interim financial information as of, and for the three months ended March 31, 2019 and 2018 is unaudited. However, in the opinion of management, the interim information includes all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results presented for the interim periods. The operating results for the interim periods are not necessarily indicative of the results to be expected for the full year. All significant intercompany amounts have been eliminated in consolidation. Certain reclassifications have been made to financial information presented for prior years to conform to the current year’s presentation. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2018-13, "Fair Value Measurement (Topic 820)." ASU 2018-13 eliminates, adds and modifies certain disclosure requirements on fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within the year of adoption. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty are applied prospectively for only the most recent interim or annual period presented in the initial fiscal year adoption. All other amendments are applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. We are currently in the process of evaluating the impact that the adoption of the ASU will have on our financial disclosures. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (Topic 326). ASU 2016-13 requires organizations to estimate credit losses on certain types of financial instruments, including receivables and available-for-sale debt securities, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within the year of adoption. The guidance requires a modified retrospective transition method and early adoption is permitted. We are currently in the process of evaluating the impact that the adoption of the ASU will have on our financial results and disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842). ASU 2016-02 requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additionally, the ASU modifies current guidance for lessors' accounting. In July 2018, the FASB issued ASU 2018-11), "Leases (Topic 842): Targeted Improvements", which provides for an alternative transition method by allowing entities to initially apply the new leases standard at the adoption date (such as January 1, 2019) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption (comparative periods presented in the financial statements will continue to be in accordance with current GAAP (Topic 840, Leases). The standard was effective for annual and interim periods beginning after December 15, 2018, with earlier application permitted. We have entered into operating leases for office space and certain other assets. We adopted the new standard on the effective date of January 1, 2019. We applied the following practical expedients: • We have elected to adopt this standard using the option transition method, which allows companies to continue applying the guidance under the lease standard in effect at that time in the comparative periods presented in the consolidated financial statements. The adoption of the standard had no effect on our consolidated shareholders’ equity. Prior periods were not restated. • We have elected the "package of practical expedients", which permits us not to reassess under the new standard our prior conclusion about lease identification, lease classification and initial direct costs. • Where we are the lessor, we have elected the practical expedient which permits us to not separate non-lease components from the associated lease components if the non-lease components otherwise would be accounted for in accordance with the new revenue standard. For the majority of our asset classes, we elected not to separate lease and non-lease components. As a result, our right-of-use assets and lease liabilities represent base rent components of our leases. We have elected to not apply the practical expedient which allows the use of hindsight in determining the lease term and in assessing impairment of the entity’s right-of-use assets. The remaining practical expedients did not specifically apply to our lease population as of the adoption date. Please see Note 4 - “Leases” for further discussion on the impact of the adoptions of this standard. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Included in “Total investments” in our Consolidated Balance Sheets at March 31, 2019 and December 31, 2018 is $145.5 million and $133.4 million , respectively, of assets managed on behalf of the trade capital providers, who are third-party participants that provide underwriting capital to the operations of Syndicates 1200 and 1910. Fixed Maturities The amortized cost, gross unrealized gains, gross unrealized losses and fair value in fixed maturity investments were as follows: March 31, 2019 (in millions) Amortized Gross Gross Fair Fixed maturities U.S. Governments $ 250.6 $ 0.6 $ 3.0 $ 248.2 Foreign Governments 239.0 2.3 3.3 238.0 Obligations of states and political subdivisions 217.1 6.0 0.3 222.8 Corporate bonds 1,816.1 16.7 26.3 1,806.5 Commercial mortgage-backed securities 209.1 2.6 1.3 210.4 Residential mortgage-backed securities 406.9 5.1 3.5 408.5 Asset-backed securities 211.6 0.8 0.6 211.8 Collateralized loan obligations 229.7 0.3 2.9 227.1 Total fixed maturities $ 3,580.1 $ 34.4 $ 41.2 $ 3,573.3 December 31, 2018 (in millions) Amortized Gross Gross Fair Fixed maturities U.S. Governments $ 240.9 $ 0.2 $ 4.9 $ 236.2 Foreign Governments 224.1 0.5 7.8 216.8 Obligations of states and political subdivisions 236.7 4.3 1.2 239.8 Corporate bonds 1,808.7 7.5 58.7 1,757.5 Commercial mortgage-backed securities 205.3 0.7 3.2 202.8 Residential mortgage-backed securities 413.1 3.4 5.7 410.8 Asset-backed securities 173.6 0.4 1.2 172.8 Collateralized loan obligations 226.7 0.5 3.5 223.7 Total fixed maturities $ 3,529.1 $ 17.5 $ 86.2 $ 3,460.4 Contractual Maturity The amortized cost and fair values of fixed maturity investments as of March 31, 2019 , by contractual maturity, were as follows: (in millions) Amortized Fair Due in one year or less $ 345.0 $ 342.6 Due after one year through five years 1,507.3 1,501.1 Due after five years through ten years 556.9 555.1 Thereafter 113.6 116.7 Structured securities 1,057.3 1,057.8 Total $ 3,580.1 $ 3,573.3 The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations. Other Investments Details regarding the carrying value and unfunded investment commitments of other investments as of March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 (in millions) Carrying Unfunded Investment Type Hedge funds $ 115.9 $ — Private equity 223.2 125.9 Long only funds 139.9 — Other 4.3 — Total other investments $ 483.3 $ 125.9 December 31, 2018 (in millions) Carrying Unfunded Investment Type Hedge funds $ 120.6 $ — Private equity 211.8 120.5 Long only funds 153.0 — Other 4.4 — Total other investments $ 489.8 $ 120.5 The following describes each investment type: • Hedge funds: Hedge funds include funds that primarily buy and sell stocks, including short sales, multi-strategy credit, relative value credit and distressed credit. • Private equity: Private equity includes buyout funds, real asset/infrastructure funds, credit special situations funds, mezzanine lending funds and direct investments and strategic non-controlling minority investments in private companies that are principally accounted for using the equity method of accounting. • Long only funds: Our long only funds include a fund that primarily owns international stocks and funds that primarily own investment-grade corporate and sovereign fixed income securities. • Other: Other includes participation in investment pools. Unrealized Losses and Other-Than-Temporary Impairments An aging of unrealized losses on our investments in fixed maturities is presented below: March 31, 2019 Less Than One Year One Year or Greater Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities U.S. Governments $ 12.8 $ 0.1 $ 157.6 $ 2.8 $ 170.4 $ 2.9 Foreign Governments 64.3 2.1 85.6 1.2 149.9 3.3 Obligations of states and political subdivisions 13.1 0.1 20.4 0.2 33.5 0.3 Corporate bonds 389.0 17.1 525.8 9.2 914.8 26.3 Commercial mortgage-backed securities 30.6 0.1 69.5 1.3 100.1 1.4 Residential mortgage-backed securities 43.3 0.2 170.2 3.3 213.5 3.5 Asset-backed securities 58.4 0.2 66.9 0.4 125.3 0.6 Collateralized loan obligations 200.0 2.5 19.1 0.4 219.1 2.9 Total fixed maturities $ 811.5 $ 22.4 $ 1,115.1 $ 18.8 $ 1,926.6 $ 41.2 December 31, 2018 Less Than One Year One Year or Greater Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities U.S. Governments $ 28.2 $ 0.2 $ 173.0 $ 4.7 $ 201.2 $ 4.9 Foreign Governments 73.4 3.6 125.0 4.2 198.4 7.8 Obligations of states and political subdivisions 53.3 0.6 25.3 0.6 78.6 1.2 Corporate bonds 964.3 45.7 440.8 13.0 1,405.1 58.7 Commercial mortgage-backed securities 48.5 0.6 90.6 2.6 139.1 3.2 Residential mortgage-backed securities 63.5 0.7 176.1 5.0 239.6 5.7 Asset-backed securities 73.6 0.6 64.2 0.6 137.8 1.2 Collateralized loan obligations 209.5 3.3 10.3 0.2 219.8 3.5 Total fixed maturities $ 1,514.3 $ 55.3 $ 1,105.3 $ 30.9 $ 2,619.6 $ 86.2 We regularly evaluate our investments for other-than-temporary impairment. For fixed maturity securities, the evaluation for a credit loss is generally based on the present value of expected cash flows of the security as compared to the amortized book value. For structured securities, frequency and severity of loss inputs are used in projecting future cash flows of the securities. Loss frequency is measured as the credit default rate, which includes such factors as loan-to-value ratios and credit scores of borrowers. We also recognize other-than-temporary losses on fixed maturity securities that we intend to sell. Effective January 1, 2018, the Company adopted ASU 2016-01. As a result, changes in the fair value of equity securities are recognized in net realized investment gains in the Consolidated Statement of Income. We hold a total of 9,083 securities, of which 1,413 were in an unrealized loss position for less than one year and 1,393 were in an unrealized loss position for a period one year or greater as of March 31, 2019 . Unrealized losses greater than twelve months on fixed maturities were the result of a number of factors, including increased credit spreads, foreign currency fluctuations and higher market yields relative to the date the securities were purchased, and for structured securities, by the performance of the underlying collateral, as well. In considering whether or not an investment is other-than-temporarily impaired, we also considered that we do not intend to sell the investments and it is unlikely that we will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. We do not consider these investments to be other-than-temporarily impaired at March 31, 2019 . We recognized other-than-temporary losses on our fixed maturities portfolio as follows: For the Three Months Ended (in millions) 2019 2018 Other-than-temporary impairment: Corporate bonds $ (4.3 ) $ (1.0 ) Other-than-temporary impairment losses $ (4.3 ) $ (1.0 ) Net Realized Investment Gains and Losses The following table presents our gross realized investment gains (losses): For the Three Months Ended (in millions) 2019 2018 Realized gains on fixed maturities and other Fixed maturities $ 3.6 $ 7.5 Other investments 8.8 11.7 12.4 19.2 Realized losses on fixed maturities and other Fixed maturities (2.4 ) (4.9 ) Other investments (8.1 ) (9.3 ) Other-than-temporary impairment losses on fixed maturities (4.3 ) (1.0 ) (14.8 ) (15.2 ) Equity securities Net realized gains on equity securities 0.7 11.2 Change in unrealized gains (losses) on equity securities held at the end of the period 54.2 (30.9 ) Net realized gains (losses) on equity securities 54.9 (19.7 ) Net realized investment gains (losses) before income taxes 52.5 (15.7 ) Income tax (provision) benefit (9.7 ) 2.9 Net realized investment gains (losses), net of income taxes $ 42.8 $ (12.8 ) The cost of securities sold is based on the specific identification method. Changes in unrealized appreciation (depreciation) related to investments are summarized as follows: For the Three Months Ended (in millions) 2019 2018 Change in unrealized gains (losses) Fixed maturities $ 59.9 $ (37.1 ) Short-term investments — (0.1 ) Net unrealized investment gains (losses) before income taxes 59.9 (37.2 ) Income tax (provision) benefit (9.6 ) 6.3 Net unrealized investment gains (losses), net of income taxes $ 50.3 $ (30.9 ) Foreign Currency Exchange Forward Contracts We entered into foreign currency exchange forward contracts to manage operational currency exposure on our Canadian dollar (“CAD”) investment portfolio, minimize negative impacts to investment portfolio returns, and gain exposure to a total return strategy which invests in multiple currencies. The currency forward contracts are carried at fair value in our Consolidated Balance Sheets in “Other liabilities.” The gains and losses are included in “Net realized investment gains (losses)” in our Consolidated Statements of Income. The fair value of our foreign currency exchange forward contracts as of March 31, 2019 and December 31, 2018 was as follows: (in millions) March 31, 2019 December 31, 2018 Operational currency exposure $ (0.6 ) $ 4.4 Asset manager investment exposure 0.1 (0.3 ) Total return strategy 0.2 (1.5 ) Total $ (0.3 ) $ 2.6 The following table represents our gross investment realized gains and losses on our foreign currency exchange forward contracts: For the Three Months Ended (in millions) 2019 2018 Realized gains Operational currency exposure $ 0.3 $ 4.3 Asset manager investment exposure 1.1 4.3 Total return strategy 6.3 2.6 Gross realized investment gains 7.7 11.2 Realized losses Operational currency exposure (2.1 ) (0.6 ) Asset manager investment exposure (0.2 ) (5.9 ) Total return strategy (4.7 ) (2.1 ) Gross realized investment losses (7.0 ) (8.6 ) Net realized investment gains on foreign currency exchange forward contracts $ 0.7 $ 2.6 Regulatory Deposits, Pledged Securities and Letters of Credit We are required to maintain assets on deposit with various regulatory authorities to support our insurance and reinsurance operations. We maintain assets pledged as collateral in support of irrevocable letters of credit issued under the terms of certain reinsurance agreements for reported loss and loss expense reserves. The following table presents our components of restricted assets at March 31: (in millions) March 31, 2019 March 31, 2018 Securities on deposit for regulatory and other purposes $ 183.3 $ 171.7 Securities pledged as collateral for letters of credit 126.1 62.8 Securities and cash on deposit supporting Lloyd’s business 391.8 373.9 Total restricted investments $ 701.2 $ 608.4 Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability, or in the absence of a principal market, the most advantageous market. Market participants are buyers and sellers in the principal (or most advantageous) market that are independent, knowledgeable, able to transact for the asset or liability and willing to transfer the asset or liability. Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value. The inputs of these valuation techniques are categorized into three levels. • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the reporting date. We define actively traded as a security that has traded in the past seven days. We receive one quote per instrument for Level 1 inputs. • Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. We receive one quote per instrument for Level 2 inputs. • Level 3 inputs are unobservable inputs. Unobservable inputs reflect our own judgments about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. We receive fair value prices from third-party pricing services and our outside investment managers. These prices are determined using observable market information such as dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. We have reviewed the processes used by the third-party providers for pricing the securities, and have determined that these processes result in fair values consistent with GAAP requirements. In addition, we review these prices for reasonableness, and have not adjusted any prices received from the third-party providers as of March 31, 2019 and December 31,2018. A description of the valuation techniques we use to measure assets at fair value is as follows: Fixed Maturities (Available-for-Sale) Levels 1 and 2: • United States Treasury securities are typically valued using Level 1 inputs. For these securities, we obtain fair value measurements from third-party pricing services using quoted prices (unadjusted) in active markets at the reporting date. • United States Government agencies, non-U.S. Government securities, obligations of states and political subdivisions, credit securities and foreign denominated government and credit securities are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, yield curves, live trading levels, trade execution data, credit information and the security’s terms and conditions, among other things. • Asset and mortgage-backed securities and collateralized loan obligations are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. Fixed Maturities (Available-for-Sale) Levels 3: • We own term loans that are valued using unobservable inputs. Equity Securities Level 1: Equity securities are principally reported at fair value using Level 1 inputs. For these securities, we obtain fair value measurements from a third-party pricing service using quoted prices (unadjusted) in active markets at the reporting date. Equity Securities Level 3: We own certain equity securities that are reported at fair value using Level 3 inputs. The valuation techniques for these securities include the following: • Fair value measurements for an investment in an equity fund obtained by applying final prices provided by the administrator of the fund, which is based upon certain estimates and assumptions. • Fair value measurements from a broker and an independent valuation service, both based upon estimates and assumptions. Other Investments Level 2: Foreign regulatory deposits are assets held in trust in jurisdictions where there is a legal and regulatory requirement to maintain funds locally in order to protect policyholders. Lloyd’s is the appointed investment manager for the funds. These assets are invested in short-term government securities, agency securities and corporate bonds and are valued using Level 2 inputs based upon values obtained from Lloyd’s. Short-term Investments: Short-term investments are principally reported at fair value using Level 1 inputs, with the exception of short-term corporate and governmental bonds reported at fair value using Level 2 inputs as described in the fixed maturities section above. Values for the investments categorized as Level 1 are obtained from various financial institutions as of the reporting date. Transfers Between Level 1 and Level 2 Securities: There were no transfers between Level 1 and Level 2 securities during the three months ended March 31, 2019 . Based on an analysis of the inputs, our financial assets measured at fair value on a recurring basis have been categorized as follows: Fair Value Measurements at Reporting Date Using (in millions) March 31, 2019 Level 1 (a) Level 2 (b) Level 3 (c) Fixed maturities U.S. Governments $ 248.2 $ 238.3 $ 9.9 $ — Foreign Governments 238.0 — 238.0 — Obligations of states and political subdivisions 222.8 — 222.8 — Corporate bonds 1,806.5 1.2 1,803.1 2.2 Commercial mortgage-backed securities 210.4 — 210.4 — Residential mortgage-backed securities 408.5 — 408.5 — Asset-backed securities 211.8 — 211.8 — Collateralized loan obligations 227.1 — 227.1 — Total fixed maturities 3,573.3 239.5 3,331.6 2.2 Equity securities 403.2 394.5 — 8.7 Other investments 96.0 — 96.0 — Short-term investments 443.7 402.8 40.9 — $ 4,516.2 $ 1,036.8 $ 3,468.5 $ 10.9 (a) Quoted prices in active markets for identical assets (b) Significant other observable inputs (c) Significant unobservable inputs Fair Value Measurements at Reporting Date Using (in millions) December 31, 2018 Level 1 (a) Level 2 (b) Level 3 (c) Fixed maturities U.S. Governments $ 236.2 $ 226.7 $ 9.5 $ — Foreign Governments 216.8 — 216.8 — Obligations of states and political subdivisions 239.8 — 239.8 — Corporate bonds 1,757.5 — 1,755.3 2.2 Commercial mortgage-backed securities 202.8 — 202.8 — Residential mortgage-backed securities 410.8 — 410.8 — Asset-backed securities 172.8 — 172.8 — Collateralized loan obligations 223.7 — 223.7 — Total fixed maturities 3,460.4 226.7 3,231.5 2.2 Equity securities 354.5 346.3 — 8.2 Other investments 114.4 — 114.4 — Short-term investments 482.3 453.9 28.4 — $ 4,411.6 $ 1,026.9 $ 3,374.3 $ 10.4 (a) Quoted prices in active markets for identical assets (b) Significant other observable inputs (c) Significant unobservable inputs The fair value measurements in the tables above do not equal “Total investments” on our Consolidated Balance Sheets as they exclude certain other investments that are accounted for under the equity-method of accounting. A reconciliation of the beginning and ending balances for the investments categorized as Level 3 are as follows: Fair Value Measurements Using Observable Inputs (Level 3) (in millions) Credit Financial Equity Total Beginning balance, January 1, 2019 $ 2.2 $ 8.2 $ 10.4 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses (realized/unrealized): Included in net income (loss) — 0.5 0.5 Included in other comprehensive income (loss) — — — Purchases, issuances, sales, and settlements: Purchases — — — Issuances — — — Sales — — — Settlements — — — Ending balance, March 31, 2019 $ 2.2 $ 8.7 $ 10.9 Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at March 31, 2019 $ — $ — $ — (in millions) Credit Financial Equity Total Beginning balance, January 1, 2018 $ 1.9 $ 2.3 $ 4.2 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses (realized/unrealized): Included in net income (loss) — 0.2 0.2 Included in other comprehensive income (loss) 0.3 — 0.3 Purchases, issuances, sales, and settlements: Purchases — 7.3 7.3 Issuances — — — Sales — (1.6 ) (1.6 ) Settlements — — — Ending balance, December 31, 2018 $ 2.2 $ 8.2 $ 10.4 Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2018 $ — $ — $ — At March 31, 2019 and December 31, 2018 , we did not have any financial assets or financial liabilities measured at fair value on a nonrecurring basis or any financial liabilities on a recurring basis. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We adopted ASU 2016-02, "Leases" on January 1, 2019, which resulted in the recognition of operating leases on the balance sheet in beginning in 2019 and forward. See Note 2, “Recently Issued Accounting Pronouncements,” for additional information on the adoption of the ASU. We determine if a contract contains a lease at inception and recognize operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments at the commencement date. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Lease agreements have lease and non-lease components. We account for these components separately, therefore our right-of-use and lease liabilities represent base rent only. Lease expense is recognized on a straight-line basis over the lease term. Our operating lease obligations are for office facilities, including corporate housing, and equipment, including corporate aviation. Our leases have remaining lease terms of less than 1 year to 14 years , some of which include options to extend the leases. Expenses associated with leases totaled $5.3 million and $4.5 million for the three months ended March 31, 2019 and 2018, respectively. The components of lease expense and other lease information as of and during the three months ended March 31, 2019 are as follows: (in millions) March 31, 2019 Operating leases right-of-use assets $ 115.3 Operating lease liabilities 128.3 Operating lease weighted-average remaining lease term 10.26 years Operating lease weighted-average discount rate 3.87 % (in millions) For the Three Months Ended Operating leases costs $ 5.1 Variable lease costs 0.3 Sublease income (0.1 ) Total lease costs $ 5.3 Operating cash flows from operating lease (fixed payments) $ 4.7 Operating cash flows from operating lease (liability reduction) 3.7 Our finance leases and short-term leases as of March 31, 2019 are not material. Future minimum lease payments under operating leases as of March 31, 2019 and December 31, 2018 were as follows: (in millions) March 31, 2019 December 31, 2018 2019 $ 14.2 $ 18.7 2020 18.3 18.6 2021 17.5 17.5 2022 14.7 14.7 2023 12.3 12.3 Thereafter 80.6 80.1 Total future minimum lease payments $ 157.6 $ 161.9 Less imputed interest (29.3 ) N/A Total operating lease liability $ 128.3 N/A We have certain investment properties that we lease to independent, third parties. These properties consist of an office building that is currently leased through August 2026 and three condominiums that are leased on a short-term basis. The carrying value of these assets are included in "Other assets" on our consolidated balance sheet. Income for these leased properties was $0.8 million for each of the three months ended March 31, 2019 and 2018, and is included in "Fee and other income" on our consolidated statements of income. |
Reserves for Losses and Loss Ad
Reserves for Losses and Loss Adjustment Expenses | 3 Months Ended |
Mar. 31, 2019 | |
Insurance [Abstract] | |
Reserves for Losses and Loss Adjustment Expenses | Reserves for Losses and Loss Adjustment Expenses The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”): For the Three Months Ended (in millions) 2019 2018 Net reserves beginning of the year $ 2,562.9 $ 2,488.0 Net Ariscom reserves acquired — 47.2 Add: Losses and LAE incurred during current calendar year, net of reinsurance: Current accident year 240.4 239.2 Prior accident years (2.5 ) (2.0 ) Losses and LAE incurred during calendar year, net of reinsurance 237.9 237.2 Deduct: Losses and LAE payments made during current calendar year, net of reinsurance: Current accident year 34.7 33.3 Prior accident years 221.0 186.6 Losses and LAE payments made during current calendar year, net of reinsurance: 255.7 219.9 Change in participation interest (1) (14.6 ) (16.9 ) Foreign exchange adjustments (9.1 ) (0.8 ) Net reserves - end of period 2,521.4 2,534.8 Add: Reinsurance recoverables on unpaid losses and LAE, end of period 2,147.5 1,748.8 Gross reserves - end of period $ 4,668.9 $ 4,283.6 (1) Amount represents the change in reserves due to changing our participation in Syndicates 1200 and 1910. Reserves for losses and LAE represent the estimated indemnity cost and related adjustment expenses necessary to investigate and settle claims. Such estimates are based upon individual case estimates for reported claims, estimates from ceding companies for reinsurance assumed and actuarial estimates for losses that have been incurred but not yet reported to the insurer. Any change in probable ultimate liabilities is reflected in current operating results. The impact from the (favorable) unfavorable development of prior accident years’ loss and LAE reserves on each reporting segment is presented below: For the Three Months Ended (in millions) 2019 2018 U.S. Operations $ (4.0 ) $ (1.0 ) International Operations 0.8 (2.8 ) Run-off Lines 0.7 1.8 Total favorable prior-year development $ (2.5 ) $ (2.0 ) The following describes the primary factors behind each segment’s prior accident year reserve development for the three months ended March 31, 2019 and 2018 : Three months ended March 31, 2019 : • U.S. Operations: Favorable development in liability and specialty lines, partially offset by unfavorable development in workers compensation and commercial multi-peril lines. • International Operations: Unfavorable development in general liability, partially offset by favorable development in property reinsurance. • Run-off Lines: Unfavorable development in other run-off lines. Three months ended March 31, 2018 : • U.S. Operations: Favorable development in liability and specialty lines. • International Operations: Favorable development in property lines driven by 2017 catastrophe events, partially offset by unfavorable development within specialty lines. • Run-off Lines: Unfavorable development in risk management lines and other run-off lines. In the opinion of management, our reserves represent the best estimate of our ultimate liabilities, based on currently known facts, current law, current technology and assumptions considered reasonable where facts are not known. Due to the significant uncertainties and related management judgments, there can be no assurance that future favorable or unfavorable loss development, which may be material, will not occur. |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Disclosures about Fair Value of Financial Instruments | Disclosures about Fair Value of Financial Instruments Cash. The carrying amount approximates fair value. Investment securities and short-term investments . See Note 3, “Investments,” for additional information. Premiums receivable and reinsurance recoverables on paid losses. The carrying value of current receivables and reinsurance recoverables on paid losses approximates fair value. Debt. At March 31, 2019 and December 31, 2018 , the fair value of our Junior subordinated debentures, Senior unsecured fixed rate notes and Other indebtedness was estimated using appropriate market indices or quoted prices from external sources based on current market conditions. All of these debt instruments would be in Level 3 of the fair value hierarchy, as the fair value estimates shown below were calculated using unobservable inputs reflecting our assumptions about the assumptions market participants would use in pricing the liabilities. A summary of our financial instruments whose carrying value did not equal fair value is shown below: March 31, 2019 December 31, 2018 (in millions) Carrying Fair Carrying Fair Junior subordinated debentures: Trust preferred debentures $ 172.7 $ 166.3 $ 172.7 $ 163.2 Subordinated debentures acquired with Maybrooke 84.3 86.3 84.3 85.0 Total junior subordinated debentures 257.0 252.6 257.0 248.2 Senior unsecured fixed rate notes 139.9 142.6 139.8 139.5 Floating rate loan stock 57.4 55.2 57.8 54.5 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity On February 20, 2019 , our Board of Directors declared a quarterly cash dividend in the amount of $0.31 on each share of common stock outstanding. On March 15, 2019 , we paid $10.8 million to our shareholders of record on March 1, 2019 . On February 20, 2018, our Board of Directors declared a quarterly cash dividend in the amount of $0.27 on each share of common stock outstanding. On March 23, 2018, we paid $9.3 million to our shareholders of record on March 7, 2018 On February 20, 2018, the Board of Directors declared a 15% stock dividend, payable March 21, 2018 to all shareholders of record at the close of business on March 7, 2018. As a result of the stock dividend, 4,397,520 additional shares were issued. Cash was paid in lieu of fractional shares of our common shares. Excluding repurchased shares, all references to common shares and related per share amounts in this document and related disclosures have been adjusted to reflect the stock dividend for all periods presented. On May 3, 2016, our Board of Directors authorized the repurchase of up to $150.0 million of our common shares (“2016 Repurchase Authorization”). The 2016 Repurchase Authorization supersedes all previous Repurchase Authorizations. As of March 31, 2019 , availability under the 2016 Repurchase Authorization for future repurchases of our common shares was $53.3 million . We did not repurchase any common shares for the three months ended March 31, 2019. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income A summary of changes in accumulated other comprehensive (loss) income, net of taxes (where applicable) by component for the three months ended March 31, 2019 , and 2018 is presented below: (in millions) Foreign Currency Translation Adjustments Unrealized Defined Benefit Pension Plans Total Balance, January 1, 2019 $ (22.4 ) $ (49.0 ) $ (6.7 ) $ (78.1 ) Other comprehensive income before reclassifications 0.2 47.7 — 47.9 Amounts reclassified from accumulated other comprehensive income — 2.6 — 2.6 Net current-period other comprehensive income 0.2 50.3 — 50.5 Balance at March 31, 2019 $ (22.2 ) $ 1.3 $ (6.7 ) $ (27.6 ) (in millions) Foreign Currency Translation Adjustments Unrealized Defined Benefit Pension Plans Total Balance, January 1, 2018 $ (19.0 ) $ 121.9 $ (6.3 ) $ 96.6 Other comprehensive loss before reclassifications (1.1 ) (20.7 ) — (21.8 ) Amounts reclassified from accumulated other comprehensive loss — (10.2 ) — (10.2 ) Net current-period other comprehensive loss (1.1 ) (30.9 ) — (32.0 ) Cumulative effect of adoption of ASU 2016-01 — (117.5 ) — (117.5 ) Cumulative effect of adoption of ASU 2018-02 — 20.9 — 20.9 Balance at March 31, 2018 $ (20.1 ) $ (5.6 ) $ (6.3 ) $ (32.0 ) The amounts reclassified from accumulated other comprehensive (loss) income shown in the above table have been included in the following captions in our Consolidated Statements of Income: For the Three Months Ended March 31, (in millions) 2019 2018 Unrealized gains and losses on securities: Net realized investment loss (gains) $ 3.1 $ (12.5 ) (Benefit) provision for income taxes (0.5 ) 2.3 Net of taxes $ 2.6 $ (10.2 ) |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share The following table presents the calculation of net income per common share on a basic and diluted basis: For the Three Months Ended (in millions, except number of shares and per share amounts) 2019 2018 Net income $ 91.2 $ 24.8 Weighted average common shares outstanding - basic 33,984,329 33,868,749 Effect of dilutive securities: Equity compensation awards 753,610 871,594 Weighted average common shares outstanding - diluted 34,737,939 34,740,343 Net income per common share: Basic $ 2.68 $ 0.73 Diluted $ 2.63 $ 0.71 Excluded from the weighted average common shares outstanding calculation at March 31, 2019 and 2018 are 11,315,889 shares and 11,099,593 shares, respectively, which are held as treasury shares. The shares are excluded as of their repurchase date. For the three months ended March 31, 2019 and March 31, 2018 , there were no equity compensation awards with an anti-dilutive effect. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Interest paid and income taxes paid (recovered) were as follows: For the Three Months Ended March 31, (in millions) 2019 2018 Senior unsecured fixed rate notes $ 2.3 $ 2.3 Junior subordinated debentures 4.1 3.4 Other indebtedness 2.4 1.5 Total interest paid $ 8.8 $ 7.2 Income taxes paid 0.2 1.5 Income taxes recovered — — Income taxes paid, net $ 0.2 $ 1.5 |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | Share-based Compensation The fair value method of accounting is used for share-based compensation plans. Under the fair value method, compensation cost is measured based on the fair value of the award at the measurement date and recognized over the requisite service period. We use the Black-Scholes model to estimate the fair values on the measurement date for share options and share appreciation rights (“SARs”). The Black-Scholes model uses several assumptions to value a share award. The risk-free rate of return assumption is based on the five -year U.S. Treasury constant maturity rate on the measurement date. The expected dividend yield is based on our history and expected dividend payouts. The expected award life is based upon the average holding period over the history of the incentive plan. The expected volatility assumption is based on the historical change in our stock price over the previous five years preceding the measurement date. The following table summarizes the assumptions we used for the three months ended March 31, 2019 and 2018 : For the Three Months Ended March 31, 2019 2018 Risk-free rate of return 2.23% 2.61% Expected dividend yields 1.83% 1.71% Expected award life (years) 4.49 4.48 Expected volatility 18.18% 18.44% Argo Group’s Long-Term Incentive Plan In November 2007, our shareholders approved the 2007 Long-Term Incentive Plan (the “2007 Plan”), which provides for an aggregate of 4.5 million shares of our common stock that may be issued to executives, non-employee directors, and other key employees. As of May 2014, 1.46 million shares remained available for grant under the 2007 Plan. In May 2014, our shareholders approved the 2014 Long-Term Incentive Plan (the “2014 Plan”), which provides for an additional 2.8 million shares of our common stock to be available for issuance to executives, non-employee directors and other key employees. The share awards may be in the form of share options, SARs, restricted shares, restricted share awards, restricted share unit awards, performance awards, other share-based awards and other cash-based awards. Shares issued under this plan may be shares that are authorized and unissued or shares that we reacquired, including shares purchased on the open market. Share options and SARs will count as one share for the purposes of the limits under the incentive plans; restricted shares, restricted share units, performance units, performance shares or other share-based incentive awards which settle in common shares will count as 2.75 shares for purpose of the limits under the 2014 Plan. Share options may be in the form of incentive share options, non-qualified share options and restorative options. Share options are required to have an exercise price that is not less than the market value on the date of grant. We are prohibited from repricing the options, except for the impact of stock dividend declarations. The term of the share options cannot exceed seven years from the grant date. Restricted Shares A summary of restricted share activity as of March 31, 2019 and changes during the three months ended is as follows: Shares Weighted-Average Outstanding at January 1, 2019 897,005 $ 46.82 Granted 179,537 $ 68.27 Vested and issued (141,850 ) $ 49.42 Expired or forfeited (48,038 ) $ 54.80 Outstanding at March 31, 2019 886,654 $ 50.17 The restricted shares vest over one to four years. Expense recognized under this plan for the restricted shares was $3.7 million and $3.4 million for the three months ended March 31, 2019 and March 31, 2018 , respectively. Compensation expense for all share-based compensation awards is included in “Underwriting, acquisition and insurance expenses” in the accompanying Consolidated Statements of Income. As of March 31, 2019 , there was $34.5 million of total unrecognized compensation cost related to restricted share compensation arrangements granted by Argo Group. Stock-Settled SARs A summary of stock-settled SARs activity as of March 31, 2019 and changes during the three months ended is as follows: Shares Weighted-Average Outstanding at January 1, 2019 810,759 $ 33.88 Exercised (29,516 ) $ 35.64 Expired or forfeited (7,167 ) $ 37.85 Outstanding at March 31, 2019 774,076 $ 33.77 As of March 31, 2019 , all stock-settled SARs are fully vested. Upon exercise of the stock-settled SARs, the employee is entitled to receive shares of our common stock equal to the appreciation of the stock as compared to the exercise price. Expense recognized for the stock-settled SARs was $0.4 million and $1.1 million for the three months ended March 31, 2019 and March 31, 2018 , respectively. As of March 31, 2019 , there was no unrecognized compensation cost related to stock-settled SARs outstanding. Cash-Settled SARs A summary of cash-settled SARs activity as of March 31, 2019 and changes during the three months ended is as follows: Shares Weighted-Average Outstanding at January 1, 2019 58,428 $ 30.71 Exercised (12,869 ) $ 25.22 Expired or forfeited (3,656 ) $ 19.37 Outstanding at March 31, 2019 41,903 $ 33.38 As of March 31, 2019 , all the cash-settled SARs are fully vested. Upon exercise of the cash-settled SARs, the employee is entitled to receive cash payment for the appreciation in the value of our common stock over the exercise price. We account for the cash-settled SARs as liability awards, which require the awards to be revalued at each reporting period. Expense recognized for the cash-settled SARs was $0.2 million and $0.5 million for the three months ended March 31, 2019 and March 31, 2018 , respectively. As of March 31, 2019 , there was no unrecognized compensation cost related to cash-settled SARs outstanding. |
Underwriting, Acquisition and I
Underwriting, Acquisition and Insurance Expenses | 3 Months Ended |
Mar. 31, 2019 | |
Underwriting Acquisition And Insurance Expenses [Abstract] | |
Underwriting, Acquisition and Insurance Expenses | Underwriting, Acquisition and Insurance Expenses The components of our underwriting, acquisition and insurance expenses are detailed in the table below. General expenses includes certain costs associated with our holding company. For the Three Months Ended (in millions) 2019 2018 Commissions $ 63.3 $ 68.0 General expenses 89.1 87.8 Premium taxes, boards and bureaus 8.3 9.3 160.7 165.1 Net deferral of policy acquisition costs — (4.9 ) Total underwriting, acquisition and insurance expenses $ 160.7 $ 160.2 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We are incorporated under the laws of Bermuda and, under current Bermuda law, are not obligated to pay any taxes in Bermuda based upon income or capital gains. We have received an undertaking from the Supervisor of Insurance in Bermuda pursuant to the provisions of the Exempted Undertakings Tax Protection Act, 2011, which exempts us from any Bermuda taxes computed on profits, income or any capital asset, gain or appreciation or any tax in the nature of estate duty or inheritance tax, at least until the year 2035. We do not consider ourselves to be engaged in a trade or business in the United States or the United Kingdom and, accordingly, do not expect to be subject to direct United States or United Kingdom income taxation. We have subsidiaries based in the United Kingdom that are subject to the tax laws of that country. Under current law, these subsidiaries are taxed at the applicable corporate tax rates. Eight of the United Kingdom subsidiaries are deemed to be engaged in business in the United States, and therefore, are subject to United States corporate tax in respect of a proportion of their United States underwriting business only. Relief is available against the United Kingdom tax liabilities in respect of overseas taxes paid that arise from the underwriting business. Our United Kingdom subsidiaries file separate United Kingdom income tax returns. We have subsidiaries based in the United States that are subject to United States tax laws. Under current law, these subsidiaries are taxed at the applicable corporate tax rates. Our United States subsidiaries generally file a consolidated United States federal income tax return. We also have operations in Belgium, Brazil, France, Ireland, Italy, Malta, Spain, and Switzerland, which also are subject to income taxes imposed by the jurisdiction in which they operate. We have operations in Barbados and the United Arab Emirates, which are not subject to income tax under the laws of those countries. Our expected income tax provision computed on pre-tax income (loss) at the weighted average tax rate has been calculated as the sum of the pre-tax income (loss) in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. For the three months ended March 31, 2019 and 2018 , pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows: For the Three Months Ended March 31, 2019 2018 (in millions) Pre-Tax Effective Pre-Tax Effective Bermuda $ 32.0 — % $ 25.3 — % United States 69.4 14.4 % (6.3 ) 23.0 % United Kingdom (3.5 ) 31.5 % 6.2 24.5 % Belgium — (1) 30.8 % 0.1 35.8 % Brazil 1.8 — % (1.4 ) — % United Arab Emirates 0.2 — % 0.2 — % Ireland — (1) — % — (1) — % Italy (0.7 ) — % — (1) — % Malta 0.9 — % 0.9 — % Luxembourg — — % — (1) — % Switzerland — (1) — % — (1) 21.2 % Pre-tax income $ 100.1 8.9 % $ 25.0 0.7 % (1) Pre-tax income (loss) for the respective year was less than $0.1 million . Our effective tax rate may vary significantly from period to period depending on the jurisdiction generating the pre-tax income (loss) and its corresponding statutory tax rate. The geographic distribution of pre-tax income (loss) can fluctuate significantly between periods given the inherit nature of our business. A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows: For the Three Months Ended (in millions) 2019 2018 Income tax provision (benefit) at expected rate $ 14.9 $ (0.4 ) Tax effect of: Nontaxable investment income (0.4 ) (0.5 ) Foreign exchange adjustments 0.5 (0.2 ) Withholding taxes — (1) 0.1 Change in valuation allowance (0.6 ) (2.7 ) Other (5.5 ) 3.9 Income tax provision $ 8.9 $ 0.2 (1) Tax effect of the adjustment for the respective year was less than $0.1 million . Our gross deferred tax assets are supported by taxes paid in previous periods, reversal of taxable temporary differences and recognition of future taxable income. Management regularly evaluates the recoverability of the deferred tax assets and makes any necessary adjustments to them based upon any changes in management’s expectations of future taxable income. Realization of deferred tax assets is dependent upon our generation of future taxable income sufficient to recover tax benefits that cannot be recovered from taxes paid in the carryback period, generally for our US property and casualty insurers two years for net operating losses and for all our US subsidiaries three years for capital losses. If a company determines that any of its deferred tax assets will not result in future tax benefits, a valuation allowance must be established for the portion of these assets that are not expected to be realized. The net change in valuation allowance for deferred tax assets was a decrease of $0.6 million in 2019 relating to the following: Internal Revenue Code Section 382 limited net operating loss carryforwards within the United States, cumulative losses incurred since inception, and valuation allowances acquired through or related to acquisitions. Based upon a review of our available evidence, both positive and negative discussed above, our management concluded that it is more-likely-than-not that the other deferred tax assets will be realized. For any uncertain tax positions not meeting the “more-likely-than-not” recognition threshold, accounting standards require recognition, measurement and disclosure in a company’s financial statements. We had no material unrecognized tax benefits as of March 31, 2019 and 2018 . Our United States subsidiaries are no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2015. Our United Kingdom subsidiaries are no longer subject to United Kingdom income tax examinations by Her Majesty’s Revenue and Customs for years before 2017. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Argo Group’s subsidiaries are parties to legal actions incidental to their business. Based on the opinion of legal counsel, management believes that the resolution of these matters will not materially affect our financial condition or results of operations. We have contractual commitments to invest up to $125.9 million related to our limited partnership investments at March 31, 2019 . These commitments will be funded as required by the partnership agreements which can be called to be fulfilled at any time, not to exceed thirteen years |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We are primarily engaged in underwriting property and casualty insurance and reinsurance. We have two ongoing reporting segments: U.S. Operations and International Operations. Additionally, we have a Run-off Lines segment for certain products that we no longer underwrite. We consider many factors, including the nature of each segment’s insurance and reinsurance products, production sources, distribution strategies and the regulatory environment, in determining how to aggregate reporting segments. Transactions between segments are reported in the segment that initiated the transaction. In evaluating the operating performance of our segments, we focus on core underwriting and investing results before the consideration of realized gains or losses from investments. Realized investment gains are reported as a component of the Corporate and Other segment, as decisions regarding the acquisition and disposal of securities reside with the corporate investment function and are not under the control of the individual business segments. Identifiable assets by segment are those assets used in the operation of each segment. Revenue and income before income taxes for each segment were as follows: For the Three Months Ended (in millions) 2019 2018 Revenue: Earned premiums U.S. Operations $ 273.8 $ 262.3 International Operations 146.7 152.4 Total earned premiums 420.5 414.7 Net investment income U.S. Operations 23.1 22.6 International Operations 9.1 8.8 Run-off Lines 1.4 2.2 Corporate and Other 0.3 2.4 Total net investment income 33.9 36.0 Fee and other income 2.3 2.0 Net realized investment gains (losses) 52.5 (15.7 ) Total revenue $ 509.2 $ 437.0 For the Three Months Ended (in millions) 2019 2018 Income before income taxes U.S. Operations $ 42.9 $ 34.0 International Operations 16.2 22.9 Run-off Lines 0.6 (0.7 ) Total segment income before taxes 59.7 56.2 Corporate and Other (12.1 ) (15.5 ) Net realized investment gains (losses) 52.5 (15.7 ) Total income before income taxes $ 100.1 $ 25.0 The table below presents earned premiums by geographic location for the three months ended March 31, 2019 and 2018 . For this disclosure, we determine geographic location by the country of domicile of our subsidiaries that underwrite the business and not by the location of insureds or reinsureds from whom the business was generated. For the Three Months Ended (in millions) 2019 2018 United States $ 272.6 $ 261.4 United Kingdom 97.1 114.1 Bermuda 16.6 20.5 Malta 20.8 5.7 All other jurisdictions 13.4 13.0 Total earned premiums $ 420.5 $ 414.7 The following table represents identifiable assets: (in millions) March 31, 2019 December 31, 2018 U.S. Operations $ 5,179.6 $ 4,707.8 International Operations 4,219.0 3,984.7 Run-off Lines 364.3 444.8 Corporate and Other 191.6 420.9 Total $ 9,954.5 $ 9,558.2 Included in total assets at March 31, 2019 and December 31, 2018 are $760.9 million and $880.4 million , respectively, in assets associated with trade capital providers. |
Senior Unsecured Fixed Rate Not
Senior Unsecured Fixed Rate Notes | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Senior Unsecured Fixed Rate Notes | Senior Unsecured Fixed Rate Notes In September 2012, Argo Group (the “Parent Guarantor”), through its subsidiary Argo Group US (the “Subsidiary Issuer”), issued $143,750,000 aggregate principal amount of the Subsidiary Issuer’s 6.5% Senior Notes due September 15, 2042 (the “Notes”). The Notes are unsecured and unsubordinated obligations of the Subsidiary Issuer and rank equally in right of payment with all of the Subsidiary Issuer’s other unsecured and unsubordinated debt. The Notes are guaranteed on a full and unconditional senior unsecured basis by the Parent Guarantor. The Notes may be redeemed, for cash, in whole or in part, on or after September 15, 2017 , at the Subsidiary Issuer’s option, at any time and from time to time, prior to maturity at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date. In accordance with ASU 2015-3, “Simplifying the Presentation of Debt Issuance Costs” (Topic 835), we present the unamortized debt issuance costs in the balance sheet as a direct deduction from the carrying value of the debt liability. At March 31, 2019 and December 31, 2018 , the Notes consisted of the following: (in millions) March 31, 2019 December 31, 2018 Senior unsecured fixed rate notes Principal $ 143.8 $ 143.8 Less: unamortized debt issuance costs (3.9 ) (4.0 ) Senior unsecured fixed rate notes, less unamortized debt issuance costs $ 139.9 $ 139.8 In accordance with Article 10 of SEC Regulation S-X, we have elected to present condensed consolidating financial information in lieu of separate financial statements for the Subsidiary Issuer. The following tables present condensed consolidating financial information at March 31, 2019 and December 31, 2018 and for the three months ended March 31, 2019 and 2018, of the Parent Guarantor and the Subsidiary Issuer. The Subsidiary Issuer is an indirect wholly-owned subsidiary of the Parent Guarantor. Investments in subsidiaries are accounted for by the Parent Guarantor under the equity method for purposes of the supplemental consolidating presentation. Earnings of subsidiaries are reflected in the Parent Guarantor’s investment accounts and earnings. The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer. Condensed consolidating financial information of the Subsidiary Issuer is presented on a consolidated basis and consists principally of the net assets, results of operations and cash flows of operating insurance company subsidiaries. CONDENSED CONSOLIDATING BALANCE SHEET MARCH 31, 2019 (in millions) (Unaudited) Argo Group Argo Group US, Inc. Other Subsidiaries Consolidating Total Assets Investments $ 1.9 $ 3,274.0 $ 1,627.6 $ — $ 4,903.5 Cash 1.9 33.3 117.5 — 152.7 Accrued investment income — 19.9 7.6 — 27.5 Premiums receivable — 222.2 451.0 — 673.2 Reinsurance recoverables — 1,659.1 1,002.3 — 2,661.4 Goodwill and other intangible assets, net 41.6 123.7 104.8 — 270.1 Current income taxes receivable, net — 6.1 (1.1 ) — 5.0 Deferred acquisition costs, net — 84.6 83.3 — 167.9 Ceded unearned premiums — 264.9 297.6 — 562.5 Operating lease right-of-use assets 8.7 76.5 30.1 — 115.3 Other assets 10.6 189.2 215.6 — 415.4 Intercompany note receivable — 54.4 (54.4 ) — — Investments in subsidiaries 1,999.4 — — (1,999.4 ) — Total assets $ 2,064.1 $ 6,007.9 $ 3,881.9 $ (1,999.4 ) $ 9,954.5 Liabilities and Shareholders' Equity Reserves for losses and loss adjustment expenses $ — $ 2,827.8 $ 1,841.1 $ — $ 4,668.9 Unearned premiums — 785.6 558.9 — 1,344.5 Funds held and ceded reinsurance payable, net — 754.9 328.5 — 1,083.4 Debt 153.4 284.8 141.7 — 579.9 Deferred tax liabilities, net — 21.7 (1.0 ) — 20.7 Accrued underwriting expenses and other liabilities 7.8 101.3 139.1 — 248.2 Operating lease liabilities 9.2 86.5 32.6 — 128.3 Due to (from) affiliates 13.1 3.1 (3.1 ) (13.1 ) — Intercompany note payable — — — — — Total liabilities 183.5 4,865.7 3,037.8 (13.1 ) 8,073.9 Total shareholders' equity 1,880.6 1,142.2 844.1 (1,986.3 ) 1,880.6 Total liabilities and shareholders' equity $ 2,064.1 $ 6,007.9 $ 3,881.9 $ (1,999.4 ) $ 9,954.5 (1) Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. (2) Includes all Argo Group parent company eliminatio ns. CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2018 (in millions) Argo Group Argo Group US, Inc. Other Subsidiaries Consolidating Total Assets Investments $ 3.8 $ 3,175.9 $ 1,607.3 $ — $ 4,787.0 Cash 1.7 31.7 105.8 — 139.2 Accrued investment income — 20.3 6.9 — 27.2 Premiums receivable — 229.5 420.4 — 649.9 Reinsurance recoverables — 1,635.2 1,053.1 — 2,688.3 Goodwill and other intangible assets, net 41.9 123.8 104.8 — 270.5 Current income taxes receivable, net — 9.1 (0.9 ) — 8.2 Deferred acquisition costs, net — 86.2 81.1 — 167.3 Ceded unearned premiums — 250.4 207.3 — 457.7 Other assets 15.7 165.3 181.9 — 362.9 Intercompany note receivable — 53.7 (53.7 ) — — Investments in subsidiaries 1,852.7 — — (1,852.7 ) — Total assets $ 1,915.8 $ 5,781.1 $ 3,714.0 $ (1,852.7 ) $ 9,558.2 Liabilities and Shareholders' Equity Reserves for losses and loss adjustment expenses $ — $ 2,771.4 $ 1,883.2 $ — $ 4,654.6 Unearned premiums — 797.4 503.5 — 1,300.9 Funds held and ceded reinsurance payable, net — 739.3 268.4 — 1,007.7 Debt 153.4 284.7 142.1 — 580.2 Deferred tax liabilities, net — 5.6 0.6 — 6.2 Accrued underwriting expenses and other liabilities 7.2 112.4 142.3 — 261.9 Due to (from) affiliates 8.5 2.0 (2.0 ) (8.5 ) — Intercompany note payable — 19.1 (19.1 ) — — Total liabilities 169.1 4,731.9 2,919.0 (8.5 ) 7,811.5 Total shareholders' equity 1,746.7 1,049.2 795.0 (1,844.2 ) 1,746.7 Total liabilities and shareholders' equity $ 1,915.8 $ 5,781.1 $ 3,714.0 $ (1,852.7 ) $ 9,558.2 (1) Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. (2) Includes all Argo Group parent company eliminations. CONDENSED CONSOLIDATING STATEMENT OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2019 (in millions) (Unaudited) Argo Group Argo Group US, Inc. Other Subsidiaries Consolidating Total Premiums and other revenue: Earned premiums $ — $ 266.5 $ 154.0 $ — $ 420.5 Net investment (expense) income (0.7 ) 23.8 10.8 — 33.9 Fee and other income — 1.1 1.2 — 2.3 Net realized investment (losses) gains (0.1 ) 45.9 6.7 — 52.5 Total revenue (0.8 ) 337.3 172.7 — 509.2 Expenses: Losses and loss adjustment expenses — 158.0 79.9 — 237.9 Underwriting, acquisition and insurance expenses 0.7 104.1 55.9 — 160.7 Interest expense 1.7 4.7 2.1 — 8.5 Fee and other expense — 0.8 0.5 — 1.3 Foreign currency exchange losses — 0.3 0.4 — 0.7 Total expenses 2.4 267.9 138.8 — 409.1 (Loss) income before income taxes (3.2 ) 69.4 33.9 — 100.1 Provision for income taxes — 10.0 (1.1 ) — 8.9 Net (loss) income before equity in earnings of subsidiaries (3.2 ) 59.4 35.0 — 91.2 Equity in undistributed earnings of subsidiaries 94.4 — — (94.4 ) — Net income $ 91.2 $ 59.4 $ 35.0 $ (94.4 ) $ 91.2 (1) Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. (2) Includes all Argo Group parent company eliminations. CONDENSED CONSOLIDATING STATEMENT OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2018 (in millions) (Unaudited) Argo Group Argo Group US, Inc. Other Subsidiaries Consolidating Total Premiums and other revenue: Earned premiums $ — $ 156.9 $ 257.8 $ — $ 414.7 Net investment (expense) income (0.7 ) 22.1 14.6 — 36.0 Fee and other income — 0.8 1.2 — 2.0 Net realized investment (losses) gains (0.4 ) (15.4 ) 0.1 — (15.7 ) Total revenue (1.1 ) 164.4 273.7 — 437.0 Expenses: Losses and loss adjustment expenses — 95.4 141.8 — 237.2 Underwriting, acquisition and insurance expenses 2.4 69.8 88.0 — 160.2 Interest expense 1.3 4.3 2.1 — 7.7 Fee and other expense — 1.4 0.6 — 2.0 Foreign currency exchange losses — 0.1 4.8 — 4.9 Total expenses 3.7 171.0 237.3 — 412.0 (Loss) income before income taxes (4.8 ) (6.6 ) 36.4 — 25.0 Provision (benefit) for income taxes — (1.4 ) 1.6 — 0.2 Net (loss) income before equity in earnings of subsidiaries (4.8 ) (5.2 ) 34.8 — 24.8 Equity in undistributed earnings of subsidiaries 29.6 — — (29.6 ) — Net income (loss) $ 24.8 $ (5.2 ) $ 34.8 $ (29.6 ) $ 24.8 (1) Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. (2) Includes all Argo Group parent company eliminations. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2019 (in millions) (Unaudited) Argo Group Argo Group US, Inc. Other Subsidiaries Consolidating Total Net cash flows from operating activities $ 8.8 $ 29.5 $ 17.3 $ — $ 55.6 Cash flows from investing activities: Proceeds from sales of investments — 156.6 115.9 — 272.5 Maturities and mandatory calls of fixed maturity investments — 51.3 14.5 — 65.8 Purchases of investments — (249.0 ) (135.2 ) — (384.2 ) Change in short-term investments and foreign regulatory deposits 1.9 35.3 0.8 — 38.0 Settlements of foreign currency exchange forward contracts — 0.3 3.3 — 3.6 Purchases of fixed assets and other, net — (3.3 ) (24.1 ) — (27.4 ) Cash provided by (used in) investing activities 1.9 (8.8 ) (24.8 ) — (31.7 ) Cash flows from financing activities: Payment on the intercompany note — (19.1 ) 19.1 — — Activity under stock incentive plans 0.3 — — — 0.3 Payment of cash dividend to common shareholders (10.8 ) — — — (10.8 ) Cash (used in) provided by financing activities (10.5 ) (19.1 ) 19.1 — (10.5 ) Effect of exchange rate changes on cash — — 0.1 — 0.1 Change in cash 0.2 1.6 11.7 — 13.5 Cash, beginning of year 1.7 31.7 105.8 — 139.2 Cash, end of period $ 1.9 $ 33.3 $ 117.5 $ — $ 152.7 (1) Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. (2) Includes all Argo Group parent company eliminations. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2018 (in millions) (Unaudited) Argo Group Argo Group US, Inc. Other Subsidiaries Consolidating Total Net cash flows from operating activities $ 27.8 $ 53.2 $ 72.6 $ — $ 153.6 Cash flows from investing activities: Proceeds from sales of investments — 325.0 230.4 — 555.4 Maturities and mandatory calls of fixed maturity investments — 113.1 31.7 — 144.8 Purchases of investments — (475.2 ) (212.3 ) — (687.5 ) Change in short-term investments and foreign regulatory deposits — (4.5 ) (156.5 ) — (161.0 ) Settlements of foreign currency exchange forward contracts (0.6 ) (0.7 ) 3.0 — 1.7 Cash acquired with acquisition of Ariscom — — 15.6 — 15.6 Purchases of fixed assets and other, net (0.1 ) 0.7 1.9 — 2.5 Cash used in investing activities (0.7 ) (41.6 ) (86.2 ) — (128.5 ) Cash flows from financing activities: Activity under stock incentive plans 0.2 — — — 0.2 Repurchase of Company's common shares (18.6 ) — — — (18.6 ) Payment of cash dividend to common shareholders (9.3 ) — — — (9.3 ) Cash used in financing activities (27.7 ) — — — (27.7 ) Effect of exchange rate changes on cash — — (0.3 ) — (0.3 ) Change in cash (0.6 ) 11.6 (13.9 ) — (2.9 ) Cash, beginning of year 0.9 47.8 127.9 — 176.6 Cash, end of period $ 0.3 $ 59.4 $ 114.0 $ — $ 173.7 (1) Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. (2) Includes all Argo Group parent company eliminations. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements of Argo Group International Holdings, Ltd. (“Argo Group,” “we” or the “Company”) and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The preparation of interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The major estimates reflected in our consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses; reinsurance recoverables, including the reinsurance recoverables allowance for doubtful accounts; estimates of written and earned premiums; reinsurance premium receivable; fair value of investments and assessment of potential impairment; valuation of goodwill and intangibles and our deferred tax asset valuation allowance. Actual results could differ from those estimates. Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 , filed with the Securities and Exchange Commission on February 25, 2019. The interim financial information as of, and for the three months ended March 31, 2019 and 2018 is unaudited. However, in the opinion of management, the interim information includes all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results presented for the interim periods. The operating results for the interim periods are not necessarily indicative of the results to be expected for the full year. All significant intercompany amounts have been eliminated in consolidation. |
Reclassification | Certain reclassifications have been made to financial information presented for prior years to conform to the current year’s presentation. |
Recently Issued Accounting Pronouncements | 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2018-13, "Fair Value Measurement (Topic 820)." ASU 2018-13 eliminates, adds and modifies certain disclosure requirements on fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within the year of adoption. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty are applied prospectively for only the most recent interim or annual period presented in the initial fiscal year adoption. All other amendments are applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. We are currently in the process of evaluating the impact that the adoption of the ASU will have on our financial disclosures. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (Topic 326). ASU 2016-13 requires organizations to estimate credit losses on certain types of financial instruments, including receivables and available-for-sale debt securities, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within the year of adoption. The guidance requires a modified retrospective transition method and early adoption is permitted. We are currently in the process of evaluating the impact that the adoption of the ASU will have on our financial results and disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842). ASU 2016-02 requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additionally, the ASU modifies current guidance for lessors' accounting. In July 2018, the FASB issued ASU 2018-11), "Leases (Topic 842): Targeted Improvements", which provides for an alternative transition method by allowing entities to initially apply the new leases standard at the adoption date (such as January 1, 2019) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption (comparative periods presented in the financial statements will continue to be in accordance with current GAAP (Topic 840, Leases). The standard was effective for annual and interim periods beginning after December 15, 2018, with earlier application permitted. We have entered into operating leases for office space and certain other assets. We adopted the new standard on the effective date of January 1, 2019. We applied the following practical expedients: • We have elected to adopt this standard using the option transition method, which allows companies to continue applying the guidance under the lease standard in effect at that time in the comparative periods presented in the consolidated financial statements. The adoption of the standard had no effect on our consolidated shareholders’ equity. Prior periods were not restated. • We have elected the "package of practical expedients", which permits us not to reassess under the new standard our prior conclusion about lease identification, lease classification and initial direct costs. • Where we are the lessor, we have elected the practical expedient which permits us to not separate non-lease components from the associated lease components if the non-lease components otherwise would be accounted for in accordance with the new revenue standard. For the majority of our asset classes, we elected not to separate lease and non-lease components. As a result, our right-of-use assets and lease liabilities represent base rent components of our leases. We have elected to not apply the practical expedient which allows the use of hindsight in determining the lease term and in assessing impairment of the entity’s right-of-use assets. The remaining practical expedients did not specifically apply to our lease population as of the adoption date. Please see Note 4 - “Leases” for further discussion on the impact of the adoptions of this standard. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments | The amortized cost, gross unrealized gains, gross unrealized losses and fair value in fixed maturity investments were as follows: March 31, 2019 (in millions) Amortized Gross Gross Fair Fixed maturities U.S. Governments $ 250.6 $ 0.6 $ 3.0 $ 248.2 Foreign Governments 239.0 2.3 3.3 238.0 Obligations of states and political subdivisions 217.1 6.0 0.3 222.8 Corporate bonds 1,816.1 16.7 26.3 1,806.5 Commercial mortgage-backed securities 209.1 2.6 1.3 210.4 Residential mortgage-backed securities 406.9 5.1 3.5 408.5 Asset-backed securities 211.6 0.8 0.6 211.8 Collateralized loan obligations 229.7 0.3 2.9 227.1 Total fixed maturities $ 3,580.1 $ 34.4 $ 41.2 $ 3,573.3 December 31, 2018 (in millions) Amortized Gross Gross Fair Fixed maturities U.S. Governments $ 240.9 $ 0.2 $ 4.9 $ 236.2 Foreign Governments 224.1 0.5 7.8 216.8 Obligations of states and political subdivisions 236.7 4.3 1.2 239.8 Corporate bonds 1,808.7 7.5 58.7 1,757.5 Commercial mortgage-backed securities 205.3 0.7 3.2 202.8 Residential mortgage-backed securities 413.1 3.4 5.7 410.8 Asset-backed securities 173.6 0.4 1.2 172.8 Collateralized loan obligations 226.7 0.5 3.5 223.7 Total fixed maturities $ 3,529.1 $ 17.5 $ 86.2 $ 3,460.4 |
Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity | The amortized cost and fair values of fixed maturity investments as of March 31, 2019 , by contractual maturity, were as follows: (in millions) Amortized Fair Due in one year or less $ 345.0 $ 342.6 Due after one year through five years 1,507.3 1,501.1 Due after five years through ten years 556.9 555.1 Thereafter 113.6 116.7 Structured securities 1,057.3 1,057.8 Total $ 3,580.1 $ 3,573.3 |
Schedule of Carrying Value And Unfunded Investment Commitments Of Other Invested Assets Portfolio | Details regarding the carrying value and unfunded investment commitments of other investments as of March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 (in millions) Carrying Unfunded Investment Type Hedge funds $ 115.9 $ — Private equity 223.2 125.9 Long only funds 139.9 — Other 4.3 — Total other investments $ 483.3 $ 125.9 December 31, 2018 (in millions) Carrying Unfunded Investment Type Hedge funds $ 120.6 $ — Private equity 211.8 120.5 Long only funds 153.0 — Other 4.4 — Total other investments $ 489.8 $ 120.5 |
Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments | An aging of unrealized losses on our investments in fixed maturities is presented below: March 31, 2019 Less Than One Year One Year or Greater Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities U.S. Governments $ 12.8 $ 0.1 $ 157.6 $ 2.8 $ 170.4 $ 2.9 Foreign Governments 64.3 2.1 85.6 1.2 149.9 3.3 Obligations of states and political subdivisions 13.1 0.1 20.4 0.2 33.5 0.3 Corporate bonds 389.0 17.1 525.8 9.2 914.8 26.3 Commercial mortgage-backed securities 30.6 0.1 69.5 1.3 100.1 1.4 Residential mortgage-backed securities 43.3 0.2 170.2 3.3 213.5 3.5 Asset-backed securities 58.4 0.2 66.9 0.4 125.3 0.6 Collateralized loan obligations 200.0 2.5 19.1 0.4 219.1 2.9 Total fixed maturities $ 811.5 $ 22.4 $ 1,115.1 $ 18.8 $ 1,926.6 $ 41.2 December 31, 2018 Less Than One Year One Year or Greater Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities U.S. Governments $ 28.2 $ 0.2 $ 173.0 $ 4.7 $ 201.2 $ 4.9 Foreign Governments 73.4 3.6 125.0 4.2 198.4 7.8 Obligations of states and political subdivisions 53.3 0.6 25.3 0.6 78.6 1.2 Corporate bonds 964.3 45.7 440.8 13.0 1,405.1 58.7 Commercial mortgage-backed securities 48.5 0.6 90.6 2.6 139.1 3.2 Residential mortgage-backed securities 63.5 0.7 176.1 5.0 239.6 5.7 Asset-backed securities 73.6 0.6 64.2 0.6 137.8 1.2 Collateralized loan obligations 209.5 3.3 10.3 0.2 219.8 3.5 Total fixed maturities $ 1,514.3 $ 55.3 $ 1,105.3 $ 30.9 $ 2,619.6 $ 86.2 |
Schedule of Recognized Other-than-temporary Losses on Fixed Maturities and Equity Portfolios | We recognized other-than-temporary losses on our fixed maturities portfolio as follows: For the Three Months Ended (in millions) 2019 2018 Other-than-temporary impairment: Corporate bonds $ (4.3 ) $ (1.0 ) Other-than-temporary impairment losses $ (4.3 ) $ (1.0 ) |
Schedule of Company's Gross Realized Investment Gains (Losses) | The following table presents our gross realized investment gains (losses): For the Three Months Ended (in millions) 2019 2018 Realized gains on fixed maturities and other Fixed maturities $ 3.6 $ 7.5 Other investments 8.8 11.7 12.4 19.2 Realized losses on fixed maturities and other Fixed maturities (2.4 ) (4.9 ) Other investments (8.1 ) (9.3 ) Other-than-temporary impairment losses on fixed maturities (4.3 ) (1.0 ) (14.8 ) (15.2 ) Equity securities Net realized gains on equity securities 0.7 11.2 Change in unrealized gains (losses) on equity securities held at the end of the period 54.2 (30.9 ) Net realized gains (losses) on equity securities 54.9 (19.7 ) Net realized investment gains (losses) before income taxes 52.5 (15.7 ) Income tax (provision) benefit (9.7 ) 2.9 Net realized investment gains (losses), net of income taxes $ 42.8 $ (12.8 ) |
Schedule Of Changes In Unrealized Appreciation (Depreciation) | Changes in unrealized appreciation (depreciation) related to investments are summarized as follows: For the Three Months Ended (in millions) 2019 2018 Change in unrealized gains (losses) Fixed maturities $ 59.9 $ (37.1 ) Short-term investments — (0.1 ) Net unrealized investment gains (losses) before income taxes 59.9 (37.2 ) Income tax (provision) benefit (9.6 ) 6.3 Net unrealized investment gains (losses), net of income taxes $ 50.3 $ (30.9 ) |
Schedule of Fair Value of Foreign Currency Exchange Forward Contracts | The fair value of our foreign currency exchange forward contracts as of March 31, 2019 and December 31, 2018 was as follows: (in millions) March 31, 2019 December 31, 2018 Operational currency exposure $ (0.6 ) $ 4.4 Asset manager investment exposure 0.1 (0.3 ) Total return strategy 0.2 (1.5 ) Total $ (0.3 ) $ 2.6 |
Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts | The following table represents our gross investment realized gains and losses on our foreign currency exchange forward contracts: For the Three Months Ended (in millions) 2019 2018 Realized gains Operational currency exposure $ 0.3 $ 4.3 Asset manager investment exposure 1.1 4.3 Total return strategy 6.3 2.6 Gross realized investment gains 7.7 11.2 Realized losses Operational currency exposure (2.1 ) (0.6 ) Asset manager investment exposure (0.2 ) (5.9 ) Total return strategy (4.7 ) (2.1 ) Gross realized investment losses (7.0 ) (8.6 ) Net realized investment gains on foreign currency exchange forward contracts $ 0.7 $ 2.6 |
Schedule of Restricted Assets | The following table presents our components of restricted assets at March 31: (in millions) March 31, 2019 March 31, 2018 Securities on deposit for regulatory and other purposes $ 183.3 $ 171.7 Securities pledged as collateral for letters of credit 126.1 62.8 Securities and cash on deposit supporting Lloyd’s business 391.8 373.9 Total restricted investments $ 701.2 $ 608.4 |
Financial Assets Measured at Fair Value on Recurring Basis | Based on an analysis of the inputs, our financial assets measured at fair value on a recurring basis have been categorized as follows: Fair Value Measurements at Reporting Date Using (in millions) March 31, 2019 Level 1 (a) Level 2 (b) Level 3 (c) Fixed maturities U.S. Governments $ 248.2 $ 238.3 $ 9.9 $ — Foreign Governments 238.0 — 238.0 — Obligations of states and political subdivisions 222.8 — 222.8 — Corporate bonds 1,806.5 1.2 1,803.1 2.2 Commercial mortgage-backed securities 210.4 — 210.4 — Residential mortgage-backed securities 408.5 — 408.5 — Asset-backed securities 211.8 — 211.8 — Collateralized loan obligations 227.1 — 227.1 — Total fixed maturities 3,573.3 239.5 3,331.6 2.2 Equity securities 403.2 394.5 — 8.7 Other investments 96.0 — 96.0 — Short-term investments 443.7 402.8 40.9 — $ 4,516.2 $ 1,036.8 $ 3,468.5 $ 10.9 (a) Quoted prices in active markets for identical assets (b) Significant other observable inputs (c) Significant unobservable inputs Fair Value Measurements at Reporting Date Using (in millions) December 31, 2018 Level 1 (a) Level 2 (b) Level 3 (c) Fixed maturities U.S. Governments $ 236.2 $ 226.7 $ 9.5 $ — Foreign Governments 216.8 — 216.8 — Obligations of states and political subdivisions 239.8 — 239.8 — Corporate bonds 1,757.5 — 1,755.3 2.2 Commercial mortgage-backed securities 202.8 — 202.8 — Residential mortgage-backed securities 410.8 — 410.8 — Asset-backed securities 172.8 — 172.8 — Collateralized loan obligations 223.7 — 223.7 — Total fixed maturities 3,460.4 226.7 3,231.5 2.2 Equity securities 354.5 346.3 — 8.2 Other investments 114.4 — 114.4 — Short-term investments 482.3 453.9 28.4 — $ 4,411.6 $ 1,026.9 $ 3,374.3 $ 10.4 (a) Quoted prices in active markets for identical assets (b) Significant other observable inputs (c) Significant unobservable inputs |
Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3 | A reconciliation of the beginning and ending balances for the investments categorized as Level 3 are as follows: Fair Value Measurements Using Observable Inputs (Level 3) (in millions) Credit Financial Equity Total Beginning balance, January 1, 2019 $ 2.2 $ 8.2 $ 10.4 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses (realized/unrealized): Included in net income (loss) — 0.5 0.5 Included in other comprehensive income (loss) — — — Purchases, issuances, sales, and settlements: Purchases — — — Issuances — — — Sales — — — Settlements — — — Ending balance, March 31, 2019 $ 2.2 $ 8.7 $ 10.9 Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at March 31, 2019 $ — $ — $ — (in millions) Credit Financial Equity Total Beginning balance, January 1, 2018 $ 1.9 $ 2.3 $ 4.2 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses (realized/unrealized): Included in net income (loss) — 0.2 0.2 Included in other comprehensive income (loss) 0.3 — 0.3 Purchases, issuances, sales, and settlements: Purchases — 7.3 7.3 Issuances — — — Sales — (1.6 ) (1.6 ) Settlements — — — Ending balance, December 31, 2018 $ 2.2 $ 8.2 $ 10.4 Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2018 $ — $ — $ — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Assets and Liabilities | The components of lease expense and other lease information as of and during the three months ended March 31, 2019 are as follows: (in millions) March 31, 2019 Operating leases right-of-use assets $ 115.3 Operating lease liabilities 128.3 Operating lease weighted-average remaining lease term 10.26 years Operating lease weighted-average discount rate 3.87 % |
Lease, Cost | (in millions) For the Three Months Ended Operating leases costs $ 5.1 Variable lease costs 0.3 Sublease income (0.1 ) Total lease costs $ 5.3 Operating cash flows from operating lease (fixed payments) $ 4.7 Operating cash flows from operating lease (liability reduction) 3.7 |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments under operating leases as of March 31, 2019 and December 31, 2018 were as follows: (in millions) March 31, 2019 December 31, 2018 2019 $ 14.2 $ 18.7 2020 18.3 18.6 2021 17.5 17.5 2022 14.7 14.7 2023 12.3 12.3 Thereafter 80.6 80.1 Total future minimum lease payments $ 157.6 $ 161.9 Less imputed interest (29.3 ) N/A Total operating lease liability $ 128.3 N/A |
Reserves for Losses and Loss _2
Reserves for Losses and Loss Adjustment Expenses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Insurance [Abstract] | |
Reserves for Losses and Loss Adjustment Expenses | The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”): For the Three Months Ended (in millions) 2019 2018 Net reserves beginning of the year $ 2,562.9 $ 2,488.0 Net Ariscom reserves acquired — 47.2 Add: Losses and LAE incurred during current calendar year, net of reinsurance: Current accident year 240.4 239.2 Prior accident years (2.5 ) (2.0 ) Losses and LAE incurred during calendar year, net of reinsurance 237.9 237.2 Deduct: Losses and LAE payments made during current calendar year, net of reinsurance: Current accident year 34.7 33.3 Prior accident years 221.0 186.6 Losses and LAE payments made during current calendar year, net of reinsurance: 255.7 219.9 Change in participation interest (1) (14.6 ) (16.9 ) Foreign exchange adjustments (9.1 ) (0.8 ) Net reserves - end of period 2,521.4 2,534.8 Add: Reinsurance recoverables on unpaid losses and LAE, end of period 2,147.5 1,748.8 Gross reserves - end of period $ 4,668.9 $ 4,283.6 (1) Amount represents the change in reserves due to changing our participation in Syndicates 1200 and 1910. |
Impact from (Favorable) Unfavorable Development of Prior Accident Years’ Loss and LAE Reserves on Each Reporting Segment | The impact from the (favorable) unfavorable development of prior accident years’ loss and LAE reserves on each reporting segment is presented below: For the Three Months Ended (in millions) 2019 2018 U.S. Operations $ (4.0 ) $ (1.0 ) International Operations 0.8 (2.8 ) Run-off Lines 0.7 1.8 Total favorable prior-year development $ (2.5 ) $ (2.0 ) |
Disclosures about Fair Value _2
Disclosures about Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value | A summary of our financial instruments whose carrying value did not equal fair value is shown below: March 31, 2019 December 31, 2018 (in millions) Carrying Fair Carrying Fair Junior subordinated debentures: Trust preferred debentures $ 172.7 $ 166.3 $ 172.7 $ 163.2 Subordinated debentures acquired with Maybrooke 84.3 86.3 84.3 85.0 Total junior subordinated debentures 257.0 252.6 257.0 248.2 Senior unsecured fixed rate notes 139.9 142.6 139.8 139.5 Floating rate loan stock 57.4 55.2 57.8 54.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss) Income | A summary of changes in accumulated other comprehensive (loss) income, net of taxes (where applicable) by component for the three months ended March 31, 2019 , and 2018 is presented below: (in millions) Foreign Currency Translation Adjustments Unrealized Defined Benefit Pension Plans Total Balance, January 1, 2019 $ (22.4 ) $ (49.0 ) $ (6.7 ) $ (78.1 ) Other comprehensive income before reclassifications 0.2 47.7 — 47.9 Amounts reclassified from accumulated other comprehensive income — 2.6 — 2.6 Net current-period other comprehensive income 0.2 50.3 — 50.5 Balance at March 31, 2019 $ (22.2 ) $ 1.3 $ (6.7 ) $ (27.6 ) (in millions) Foreign Currency Translation Adjustments Unrealized Defined Benefit Pension Plans Total Balance, January 1, 2018 $ (19.0 ) $ 121.9 $ (6.3 ) $ 96.6 Other comprehensive loss before reclassifications (1.1 ) (20.7 ) — (21.8 ) Amounts reclassified from accumulated other comprehensive loss — (10.2 ) — (10.2 ) Net current-period other comprehensive loss (1.1 ) (30.9 ) — (32.0 ) Cumulative effect of adoption of ASU 2016-01 — (117.5 ) — (117.5 ) Cumulative effect of adoption of ASU 2018-02 — 20.9 — 20.9 Balance at March 31, 2018 $ (20.1 ) $ (5.6 ) $ (6.3 ) $ (32.0 ) |
Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income | The amounts reclassified from accumulated other comprehensive (loss) income shown in the above table have been included in the following captions in our Consolidated Statements of Income: For the Three Months Ended March 31, (in millions) 2019 2018 Unrealized gains and losses on securities: Net realized investment loss (gains) $ 3.1 $ (12.5 ) (Benefit) provision for income taxes (0.5 ) 2.3 Net of taxes $ 2.6 $ (10.2 ) |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share on Basic and Diluted Basis | The following table presents the calculation of net income per common share on a basic and diluted basis: For the Three Months Ended (in millions, except number of shares and per share amounts) 2019 2018 Net income $ 91.2 $ 24.8 Weighted average common shares outstanding - basic 33,984,329 33,868,749 Effect of dilutive securities: Equity compensation awards 753,610 871,594 Weighted average common shares outstanding - diluted 34,737,939 34,740,343 Net income per common share: Basic $ 2.68 $ 0.73 Diluted $ 2.63 $ 0.71 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Interest Paid and Income Taxes Paid (Recovered) | Interest paid and income taxes paid (recovered) were as follows: For the Three Months Ended March 31, (in millions) 2019 2018 Senior unsecured fixed rate notes $ 2.3 $ 2.3 Junior subordinated debentures 4.1 3.4 Other indebtedness 2.4 1.5 Total interest paid $ 8.8 $ 7.2 Income taxes paid 0.2 1.5 Income taxes recovered — — Income taxes paid, net $ 0.2 $ 1.5 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Fair Value Assumptions | The following table summarizes the assumptions we used for the three months ended March 31, 2019 and 2018 : For the Three Months Ended March 31, 2019 2018 Risk-free rate of return 2.23% 2.61% Expected dividend yields 1.83% 1.71% Expected award life (years) 4.49 4.48 Expected volatility 18.18% 18.44% |
Summary of Restricted Share Activity | A summary of restricted share activity as of March 31, 2019 and changes during the three months ended is as follows: Shares Weighted-Average Outstanding at January 1, 2019 897,005 $ 46.82 Granted 179,537 $ 68.27 Vested and issued (141,850 ) $ 49.42 Expired or forfeited (48,038 ) $ 54.80 Outstanding at March 31, 2019 886,654 $ 50.17 |
Stock Settled Share Appreciation Rights | A summary of stock-settled SARs activity as of March 31, 2019 and changes during the three months ended is as follows: Shares Weighted-Average Outstanding at January 1, 2019 810,759 $ 33.88 Exercised (29,516 ) $ 35.64 Expired or forfeited (7,167 ) $ 37.85 Outstanding at March 31, 2019 774,076 $ 33.77 |
Summary of Cash-Settled SARs Activity | A summary of cash-settled SARs activity as of March 31, 2019 and changes during the three months ended is as follows: Shares Weighted-Average Outstanding at January 1, 2019 58,428 $ 30.71 Exercised (12,869 ) $ 25.22 Expired or forfeited (3,656 ) $ 19.37 Outstanding at March 31, 2019 41,903 $ 33.38 |
Underwriting, Acquisition and_2
Underwriting, Acquisition and Insurance Expenses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Underwriting Acquisition And Insurance Expenses [Abstract] | |
Underwriting, Acquisition and Insurance Expenses | The components of our underwriting, acquisition and insurance expenses are detailed in the table below. General expenses includes certain costs associated with our holding company. For the Three Months Ended (in millions) 2019 2018 Commissions $ 63.3 $ 68.0 General expenses 89.1 87.8 Premium taxes, boards and bureaus 8.3 9.3 160.7 165.1 Net deferral of policy acquisition costs — (4.9 ) Total underwriting, acquisition and insurance expenses $ 160.7 $ 160.2 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates | For the three months ended March 31, 2019 and 2018 , pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows: For the Three Months Ended March 31, 2019 2018 (in millions) Pre-Tax Effective Pre-Tax Effective Bermuda $ 32.0 — % $ 25.3 — % United States 69.4 14.4 % (6.3 ) 23.0 % United Kingdom (3.5 ) 31.5 % 6.2 24.5 % Belgium — (1) 30.8 % 0.1 35.8 % Brazil 1.8 — % (1.4 ) — % United Arab Emirates 0.2 — % 0.2 — % Ireland — (1) — % — (1) — % Italy (0.7 ) — % — (1) — % Malta 0.9 — % 0.9 — % Luxembourg — — % — (1) — % Switzerland — (1) — % — (1) 21.2 % Pre-tax income $ 100.1 8.9 % $ 25.0 0.7 % (1) Pre-tax income (loss) for the respective year was less than $0.1 million . |
Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate | A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows: For the Three Months Ended (in millions) 2019 2018 Income tax provision (benefit) at expected rate $ 14.9 $ (0.4 ) Tax effect of: Nontaxable investment income (0.4 ) (0.5 ) Foreign exchange adjustments 0.5 (0.2 ) Withholding taxes — (1) 0.1 Change in valuation allowance (0.6 ) (2.7 ) Other (5.5 ) 3.9 Income tax provision $ 8.9 $ 0.2 (1) Tax effect of the adjustment for the respective year was less than $0.1 million . |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenue and Income (Loss) Before Income Taxes for Each Segment | Revenue and income before income taxes for each segment were as follows: For the Three Months Ended (in millions) 2019 2018 Revenue: Earned premiums U.S. Operations $ 273.8 $ 262.3 International Operations 146.7 152.4 Total earned premiums 420.5 414.7 Net investment income U.S. Operations 23.1 22.6 International Operations 9.1 8.8 Run-off Lines 1.4 2.2 Corporate and Other 0.3 2.4 Total net investment income 33.9 36.0 Fee and other income 2.3 2.0 Net realized investment gains (losses) 52.5 (15.7 ) Total revenue $ 509.2 $ 437.0 For the Three Months Ended (in millions) 2019 2018 Income before income taxes U.S. Operations $ 42.9 $ 34.0 International Operations 16.2 22.9 Run-off Lines 0.6 (0.7 ) Total segment income before taxes 59.7 56.2 Corporate and Other (12.1 ) (15.5 ) Net realized investment gains (losses) 52.5 (15.7 ) Total income before income taxes $ 100.1 $ 25.0 |
Schedule of Earned Premiums by Geographic Location | The table below presents earned premiums by geographic location for the three months ended March 31, 2019 and 2018 . For this disclosure, we determine geographic location by the country of domicile of our subsidiaries that underwrite the business and not by the location of insureds or reinsureds from whom the business was generated. For the Three Months Ended (in millions) 2019 2018 United States $ 272.6 $ 261.4 United Kingdom 97.1 114.1 Bermuda 16.6 20.5 Malta 20.8 5.7 All other jurisdictions 13.4 13.0 Total earned premiums $ 420.5 $ 414.7 |
Identifiable Assets | The following table represents identifiable assets: (in millions) March 31, 2019 December 31, 2018 U.S. Operations $ 5,179.6 $ 4,707.8 International Operations 4,219.0 3,984.7 Run-off Lines 364.3 444.8 Corporate and Other 191.6 420.9 Total $ 9,954.5 $ 9,558.2 |
Senior Unsecured Fixed Rate N_2
Senior Unsecured Fixed Rate Notes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule Of Unamortized Debt Issuance Costs Deducted From Carrying Value Of Debt Liability | At March 31, 2019 and December 31, 2018 , the Notes consisted of the following: (in millions) March 31, 2019 December 31, 2018 Senior unsecured fixed rate notes Principal $ 143.8 $ 143.8 Less: unamortized debt issuance costs (3.9 ) (4.0 ) Senior unsecured fixed rate notes, less unamortized debt issuance costs $ 139.9 $ 139.8 |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET MARCH 31, 2019 (in millions) (Unaudited) Argo Group Argo Group US, Inc. Other Subsidiaries Consolidating Total Assets Investments $ 1.9 $ 3,274.0 $ 1,627.6 $ — $ 4,903.5 Cash 1.9 33.3 117.5 — 152.7 Accrued investment income — 19.9 7.6 — 27.5 Premiums receivable — 222.2 451.0 — 673.2 Reinsurance recoverables — 1,659.1 1,002.3 — 2,661.4 Goodwill and other intangible assets, net 41.6 123.7 104.8 — 270.1 Current income taxes receivable, net — 6.1 (1.1 ) — 5.0 Deferred acquisition costs, net — 84.6 83.3 — 167.9 Ceded unearned premiums — 264.9 297.6 — 562.5 Operating lease right-of-use assets 8.7 76.5 30.1 — 115.3 Other assets 10.6 189.2 215.6 — 415.4 Intercompany note receivable — 54.4 (54.4 ) — — Investments in subsidiaries 1,999.4 — — (1,999.4 ) — Total assets $ 2,064.1 $ 6,007.9 $ 3,881.9 $ (1,999.4 ) $ 9,954.5 Liabilities and Shareholders' Equity Reserves for losses and loss adjustment expenses $ — $ 2,827.8 $ 1,841.1 $ — $ 4,668.9 Unearned premiums — 785.6 558.9 — 1,344.5 Funds held and ceded reinsurance payable, net — 754.9 328.5 — 1,083.4 Debt 153.4 284.8 141.7 — 579.9 Deferred tax liabilities, net — 21.7 (1.0 ) — 20.7 Accrued underwriting expenses and other liabilities 7.8 101.3 139.1 — 248.2 Operating lease liabilities 9.2 86.5 32.6 — 128.3 Due to (from) affiliates 13.1 3.1 (3.1 ) (13.1 ) — Intercompany note payable — — — — — Total liabilities 183.5 4,865.7 3,037.8 (13.1 ) 8,073.9 Total shareholders' equity 1,880.6 1,142.2 844.1 (1,986.3 ) 1,880.6 Total liabilities and shareholders' equity $ 2,064.1 $ 6,007.9 $ 3,881.9 $ (1,999.4 ) $ 9,954.5 (1) Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. (2) Includes all Argo Group parent company eliminatio ns. CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2018 (in millions) Argo Group Argo Group US, Inc. Other Subsidiaries Consolidating Total Assets Investments $ 3.8 $ 3,175.9 $ 1,607.3 $ — $ 4,787.0 Cash 1.7 31.7 105.8 — 139.2 Accrued investment income — 20.3 6.9 — 27.2 Premiums receivable — 229.5 420.4 — 649.9 Reinsurance recoverables — 1,635.2 1,053.1 — 2,688.3 Goodwill and other intangible assets, net 41.9 123.8 104.8 — 270.5 Current income taxes receivable, net — 9.1 (0.9 ) — 8.2 Deferred acquisition costs, net — 86.2 81.1 — 167.3 Ceded unearned premiums — 250.4 207.3 — 457.7 Other assets 15.7 165.3 181.9 — 362.9 Intercompany note receivable — 53.7 (53.7 ) — — Investments in subsidiaries 1,852.7 — — (1,852.7 ) — Total assets $ 1,915.8 $ 5,781.1 $ 3,714.0 $ (1,852.7 ) $ 9,558.2 Liabilities and Shareholders' Equity Reserves for losses and loss adjustment expenses $ — $ 2,771.4 $ 1,883.2 $ — $ 4,654.6 Unearned premiums — 797.4 503.5 — 1,300.9 Funds held and ceded reinsurance payable, net — 739.3 268.4 — 1,007.7 Debt 153.4 284.7 142.1 — 580.2 Deferred tax liabilities, net — 5.6 0.6 — 6.2 Accrued underwriting expenses and other liabilities 7.2 112.4 142.3 — 261.9 Due to (from) affiliates 8.5 2.0 (2.0 ) (8.5 ) — Intercompany note payable — 19.1 (19.1 ) — — Total liabilities 169.1 4,731.9 2,919.0 (8.5 ) 7,811.5 Total shareholders' equity 1,746.7 1,049.2 795.0 (1,844.2 ) 1,746.7 Total liabilities and shareholders' equity $ 1,915.8 $ 5,781.1 $ 3,714.0 $ (1,852.7 ) $ 9,558.2 (1) Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. (2) Includes all Argo Group parent company eliminations. |
Condensed Consolidating Statement of Income | CONDENSED CONSOLIDATING STATEMENT OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2019 (in millions) (Unaudited) Argo Group Argo Group US, Inc. Other Subsidiaries Consolidating Total Premiums and other revenue: Earned premiums $ — $ 266.5 $ 154.0 $ — $ 420.5 Net investment (expense) income (0.7 ) 23.8 10.8 — 33.9 Fee and other income — 1.1 1.2 — 2.3 Net realized investment (losses) gains (0.1 ) 45.9 6.7 — 52.5 Total revenue (0.8 ) 337.3 172.7 — 509.2 Expenses: Losses and loss adjustment expenses — 158.0 79.9 — 237.9 Underwriting, acquisition and insurance expenses 0.7 104.1 55.9 — 160.7 Interest expense 1.7 4.7 2.1 — 8.5 Fee and other expense — 0.8 0.5 — 1.3 Foreign currency exchange losses — 0.3 0.4 — 0.7 Total expenses 2.4 267.9 138.8 — 409.1 (Loss) income before income taxes (3.2 ) 69.4 33.9 — 100.1 Provision for income taxes — 10.0 (1.1 ) — 8.9 Net (loss) income before equity in earnings of subsidiaries (3.2 ) 59.4 35.0 — 91.2 Equity in undistributed earnings of subsidiaries 94.4 — — (94.4 ) — Net income $ 91.2 $ 59.4 $ 35.0 $ (94.4 ) $ 91.2 (1) Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. (2) Includes all Argo Group parent company eliminations. CONDENSED CONSOLIDATING STATEMENT OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2018 (in millions) (Unaudited) Argo Group Argo Group US, Inc. Other Subsidiaries Consolidating Total Premiums and other revenue: Earned premiums $ — $ 156.9 $ 257.8 $ — $ 414.7 Net investment (expense) income (0.7 ) 22.1 14.6 — 36.0 Fee and other income — 0.8 1.2 — 2.0 Net realized investment (losses) gains (0.4 ) (15.4 ) 0.1 — (15.7 ) Total revenue (1.1 ) 164.4 273.7 — 437.0 Expenses: Losses and loss adjustment expenses — 95.4 141.8 — 237.2 Underwriting, acquisition and insurance expenses 2.4 69.8 88.0 — 160.2 Interest expense 1.3 4.3 2.1 — 7.7 Fee and other expense — 1.4 0.6 — 2.0 Foreign currency exchange losses — 0.1 4.8 — 4.9 Total expenses 3.7 171.0 237.3 — 412.0 (Loss) income before income taxes (4.8 ) (6.6 ) 36.4 — 25.0 Provision (benefit) for income taxes — (1.4 ) 1.6 — 0.2 Net (loss) income before equity in earnings of subsidiaries (4.8 ) (5.2 ) 34.8 — 24.8 Equity in undistributed earnings of subsidiaries 29.6 — — (29.6 ) — Net income (loss) $ 24.8 $ (5.2 ) $ 34.8 $ (29.6 ) $ 24.8 (1) Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. (2) Includes all Argo Group parent company eliminations. |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2019 (in millions) (Unaudited) Argo Group Argo Group US, Inc. Other Subsidiaries Consolidating Total Net cash flows from operating activities $ 8.8 $ 29.5 $ 17.3 $ — $ 55.6 Cash flows from investing activities: Proceeds from sales of investments — 156.6 115.9 — 272.5 Maturities and mandatory calls of fixed maturity investments — 51.3 14.5 — 65.8 Purchases of investments — (249.0 ) (135.2 ) — (384.2 ) Change in short-term investments and foreign regulatory deposits 1.9 35.3 0.8 — 38.0 Settlements of foreign currency exchange forward contracts — 0.3 3.3 — 3.6 Purchases of fixed assets and other, net — (3.3 ) (24.1 ) — (27.4 ) Cash provided by (used in) investing activities 1.9 (8.8 ) (24.8 ) — (31.7 ) Cash flows from financing activities: Payment on the intercompany note — (19.1 ) 19.1 — — Activity under stock incentive plans 0.3 — — — 0.3 Payment of cash dividend to common shareholders (10.8 ) — — — (10.8 ) Cash (used in) provided by financing activities (10.5 ) (19.1 ) 19.1 — (10.5 ) Effect of exchange rate changes on cash — — 0.1 — 0.1 Change in cash 0.2 1.6 11.7 — 13.5 Cash, beginning of year 1.7 31.7 105.8 — 139.2 Cash, end of period $ 1.9 $ 33.3 $ 117.5 $ — $ 152.7 (1) Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. (2) Includes all Argo Group parent company eliminations. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2018 (in millions) (Unaudited) Argo Group Argo Group US, Inc. Other Subsidiaries Consolidating Total Net cash flows from operating activities $ 27.8 $ 53.2 $ 72.6 $ — $ 153.6 Cash flows from investing activities: Proceeds from sales of investments — 325.0 230.4 — 555.4 Maturities and mandatory calls of fixed maturity investments — 113.1 31.7 — 144.8 Purchases of investments — (475.2 ) (212.3 ) — (687.5 ) Change in short-term investments and foreign regulatory deposits — (4.5 ) (156.5 ) — (161.0 ) Settlements of foreign currency exchange forward contracts (0.6 ) (0.7 ) 3.0 — 1.7 Cash acquired with acquisition of Ariscom — — 15.6 — 15.6 Purchases of fixed assets and other, net (0.1 ) 0.7 1.9 — 2.5 Cash used in investing activities (0.7 ) (41.6 ) (86.2 ) — (128.5 ) Cash flows from financing activities: Activity under stock incentive plans 0.2 — — — 0.2 Repurchase of Company's common shares (18.6 ) — — — (18.6 ) Payment of cash dividend to common shareholders (9.3 ) — — — (9.3 ) Cash used in financing activities (27.7 ) — — — (27.7 ) Effect of exchange rate changes on cash — — (0.3 ) — (0.3 ) Change in cash (0.6 ) 11.6 (13.9 ) — (2.9 ) Cash, beginning of year 0.9 47.8 127.9 — 176.6 Cash, end of period $ 0.3 $ 59.4 $ 114.0 $ — $ 173.7 (1) Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. (2) Includes all Argo Group parent company eliminations. |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions | Mar. 31, 2019USD ($)security | Dec. 31, 2018USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Fair value of investments, assets managed on behalf of the trade capital providers | $ | $ 145.5 | $ 133.4 |
Number of securities in an unrealized loss position, total | 9,083 | |
Number of securities in an unrealized loss position for less than one year | 1,413 | |
Number of securities in an unrealized loss position for a period of one year or greater | 1,393 |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Fixed maturities | |||
Amortized Cost | $ 3,580.1 | $ 3,529.1 | |
Fair Value | 3,573.3 | 3,460.4 | [1] |
Fixed Maturities [Member] | |||
Fixed maturities | |||
Amortized Cost | 3,580.1 | 3,529.1 | |
Gross Unrealized Gains | 34.4 | 17.5 | |
Gross Unrealized Losses | 41.2 | 86.2 | |
Fair Value | 3,573.3 | 3,460.4 | |
Fixed Maturities [Member] | U.S. Governments [Member] | |||
Fixed maturities | |||
Amortized Cost | 250.6 | 240.9 | |
Gross Unrealized Gains | 0.6 | 0.2 | |
Gross Unrealized Losses | 3 | 4.9 | |
Fair Value | 248.2 | 236.2 | |
Fixed Maturities [Member] | Foreign Governments [Member] | |||
Fixed maturities | |||
Amortized Cost | 239 | 224.1 | |
Gross Unrealized Gains | 2.3 | 0.5 | |
Gross Unrealized Losses | 3.3 | 7.8 | |
Fair Value | 238 | 216.8 | |
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | |||
Fixed maturities | |||
Amortized Cost | 217.1 | 236.7 | |
Gross Unrealized Gains | 6 | 4.3 | |
Gross Unrealized Losses | 0.3 | 1.2 | |
Fair Value | 222.8 | 239.8 | |
Fixed Maturities [Member] | Corporate Bonds [Member] | |||
Fixed maturities | |||
Amortized Cost | 1,816.1 | 1,808.7 | |
Gross Unrealized Gains | 16.7 | 7.5 | |
Gross Unrealized Losses | 26.3 | 58.7 | |
Fair Value | 1,806.5 | 1,757.5 | |
Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member] | |||
Fixed maturities | |||
Amortized Cost | 209.1 | 205.3 | |
Gross Unrealized Gains | 2.6 | 0.7 | |
Gross Unrealized Losses | 1.3 | 3.2 | |
Fair Value | 210.4 | 202.8 | |
Fixed Maturities [Member] | Residential Mortgage-backed Securities [Member] | |||
Fixed maturities | |||
Amortized Cost | 406.9 | 413.1 | |
Gross Unrealized Gains | 5.1 | 3.4 | |
Gross Unrealized Losses | 3.5 | 5.7 | |
Fair Value | 408.5 | 410.8 | |
Fixed Maturities [Member] | Asset-backed Securities [Member] | |||
Fixed maturities | |||
Amortized Cost | 211.6 | 173.6 | |
Gross Unrealized Gains | 0.8 | 0.4 | |
Gross Unrealized Losses | 0.6 | 1.2 | |
Fair Value | 211.8 | 172.8 | |
Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | |||
Fixed maturities | |||
Amortized Cost | 229.7 | 226.7 | |
Gross Unrealized Gains | 0.3 | 0.5 | |
Gross Unrealized Losses | 2.9 | 3.5 | |
Fair Value | $ 227.1 | $ 223.7 | |
[1] | Derived from audited consolidated financial statements. |
Investments - Schedule of Amo_2
Investments - Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Amortized Cost | |
Due in one year or less | $ 345 |
Due after one year through five years | 1,507.3 |
Due after five years through ten years | 556.9 |
Thereafter | 113.6 |
Structured securities | 1,057.3 |
Total | 3,580.1 |
Fair Value | |
Due in one year or less | 342.6 |
Due after one year through five years | 1,501.1 |
Due after five years through ten years | 555.1 |
Thereafter | 116.7 |
Structured securities | 1,057.8 |
Total | $ 3,573.3 |
Investments - Schedule of Carry
Investments - Schedule of Carrying Value and Unfunded Investment Commitments of Other Invested Assets Portfolio (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Schedule of Investments [Line Items] | |||
Carrying Value | $ 4,903.5 | $ 4,787 | [1] |
Hedge funds [Member] | |||
Schedule of Investments [Line Items] | |||
Carrying Value | 115.9 | 120.6 | |
Unfunded Commitments | 0 | 0 | |
Private equity [Member] | |||
Schedule of Investments [Line Items] | |||
Carrying Value | 223.2 | 211.8 | |
Unfunded Commitments | 125.9 | 120.5 | |
Long only funds [Member] | |||
Schedule of Investments [Line Items] | |||
Carrying Value | 139.9 | 153 | |
Unfunded Commitments | 0 | 0 | |
Other [Member] | |||
Schedule of Investments [Line Items] | |||
Carrying Value | 4.3 | 4.4 | |
Unfunded Commitments | 0 | 0 | |
Other Investments [Member] | |||
Schedule of Investments [Line Items] | |||
Carrying Value | 483.3 | 489.8 | |
Unfunded Commitments | $ 125.9 | $ 120.5 | |
[1] | Derived from audited consolidated financial statements. |
Investments - Schedule of Aging
Investments - Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments (Detail) - Fixed Maturities [Member] - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | $ 811.5 | $ 1,514.3 |
Unrealized Losses, Less Than One Year | 22.4 | 55.3 |
Fair Value, One Year or Greater | 1,115.1 | 1,105.3 |
Unrealized Losses, One Year or Greater | 18.8 | 30.9 |
Fair Value, Total | 1,926.6 | 2,619.6 |
Unrealized Losses, Total | 41.2 | 86.2 |
U.S. Governments [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 12.8 | 28.2 |
Unrealized Losses, Less Than One Year | 0.1 | 0.2 |
Fair Value, One Year or Greater | 157.6 | 173 |
Unrealized Losses, One Year or Greater | 2.8 | 4.7 |
Fair Value, Total | 170.4 | 201.2 |
Unrealized Losses, Total | 2.9 | 4.9 |
Foreign Governments [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 64.3 | 73.4 |
Unrealized Losses, Less Than One Year | 2.1 | 3.6 |
Fair Value, One Year or Greater | 85.6 | 125 |
Unrealized Losses, One Year or Greater | 1.2 | 4.2 |
Fair Value, Total | 149.9 | 198.4 |
Unrealized Losses, Total | 3.3 | 7.8 |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 13.1 | 53.3 |
Unrealized Losses, Less Than One Year | 0.1 | 0.6 |
Fair Value, One Year or Greater | 20.4 | 25.3 |
Unrealized Losses, One Year or Greater | 0.2 | 0.6 |
Fair Value, Total | 33.5 | 78.6 |
Unrealized Losses, Total | 0.3 | 1.2 |
Corporate Bonds [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 389 | 964.3 |
Unrealized Losses, Less Than One Year | 17.1 | 45.7 |
Fair Value, One Year or Greater | 525.8 | 440.8 |
Unrealized Losses, One Year or Greater | 9.2 | 13 |
Fair Value, Total | 914.8 | 1,405.1 |
Unrealized Losses, Total | 26.3 | 58.7 |
Commercial Mortgage-backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 30.6 | 48.5 |
Unrealized Losses, Less Than One Year | 0.1 | 0.6 |
Fair Value, One Year or Greater | 69.5 | 90.6 |
Unrealized Losses, One Year or Greater | 1.3 | 2.6 |
Fair Value, Total | 100.1 | 139.1 |
Unrealized Losses, Total | 1.4 | 3.2 |
Residential Mortgage-backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 43.3 | 63.5 |
Unrealized Losses, Less Than One Year | 0.2 | 0.7 |
Fair Value, One Year or Greater | 170.2 | 176.1 |
Unrealized Losses, One Year or Greater | 3.3 | 5 |
Fair Value, Total | 213.5 | 239.6 |
Unrealized Losses, Total | 3.5 | 5.7 |
Asset-backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 58.4 | 73.6 |
Unrealized Losses, Less Than One Year | 0.2 | 0.6 |
Fair Value, One Year or Greater | 66.9 | 64.2 |
Unrealized Losses, One Year or Greater | 0.4 | 0.6 |
Fair Value, Total | 125.3 | 137.8 |
Unrealized Losses, Total | 0.6 | 1.2 |
Collateralized Debt Obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 200 | 209.5 |
Unrealized Losses, Less Than One Year | 2.5 | 3.3 |
Fair Value, One Year or Greater | 19.1 | 10.3 |
Unrealized Losses, One Year or Greater | 0.4 | 0.2 |
Fair Value, Total | 219.1 | 219.8 |
Unrealized Losses, Total | $ 2.9 | $ 3.5 |
Investments - Schedule of Recog
Investments - Schedule of Recognized Other-than-temporary Losses on Fixed Maturities and Equity Portfolios (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other-than-temporary impairment: | ||
Other-than-temporary impairment losses | $ (4.3) | $ (1) |
Corporate Bonds [Member] | ||
Other-than-temporary impairment: | ||
Other-than-temporary impairment losses | $ (4.3) | $ (1) |
Investments - Schedule of Compa
Investments - Schedule of Company's Gross Realized Investment Gains (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Investments [Line Items] | ||
Realized gains on fixed maturities and other | $ 12.4 | $ 19.2 |
Realized losses on fixed maturities and other | 14.8 | 15.2 |
Net realized gains on equity securities | 0.7 | 11.2 |
Change in unrealized gains (losses) on equity securities held at the end of the period | 54.2 | (30.9) |
Net realized gains (losses) on equity securities | 54.9 | (19.7) |
Net realized investment gains (losses) before income taxes | 52.5 | (15.7) |
Income tax (provision) benefit | (9.7) | 2.9 |
Net realized investment gains (losses), net of income taxes | 42.8 | (12.8) |
Fixed Maturities [Member] | ||
Schedule of Investments [Line Items] | ||
Realized gains on fixed maturities and other | 3.6 | 7.5 |
Realized losses on fixed maturities and other | (2.4) | (4.9) |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Realized gains on fixed maturities and other | 8.8 | 11.7 |
Realized losses on fixed maturities and other | (8.1) | (9.3) |
Other-Than-Temporary Impairment Losses on Fixed Maturities [Member] | ||
Schedule of Investments [Line Items] | ||
Realized losses on fixed maturities and other | $ (4.3) | $ (1) |
Investments - Schedule of Chang
Investments - Schedule of Changes in Unrealized Appreciation (Depreciation) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Investments [Line Items] | ||
Net unrealized investment gains (losses) before income taxes | $ (59.9) | $ 37.2 |
Income tax (provision) benefit | (9.6) | 6.3 |
Net unrealized investment gains (losses), net of income taxes | (50.3) | 30.9 |
Fixed Maturities [Member] | ||
Schedule of Investments [Line Items] | ||
Net unrealized investment gains (losses) before income taxes | 59.9 | (37.1) |
Short-Term Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Net unrealized investment gains (losses) before income taxes | $ 0 | $ (0.1) |
Investments - Schedule of Fair
Investments - Schedule of Fair Value of Foreign Currency Exchange Forward Contracts (Detail) - Foreign Currency Exchange Forward Contracts [Member] - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Foreign currency exchange, fair value | $ (0.3) | $ 2.6 |
Operational Currency Exposure [Member] | ||
Schedule of Investments [Line Items] | ||
Foreign currency exchange, fair value | (0.6) | 4.4 |
Asset Manager Investment Exposure [Member] | ||
Schedule of Investments [Line Items] | ||
Foreign currency exchange, fair value | 0.1 | (0.3) |
Total return strategy [Member] | ||
Schedule of Investments [Line Items] | ||
Foreign currency exchange, fair value | $ 0.2 | $ (1.5) |
Investments - Schedule of Reali
Investments - Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts (Detail) - Foreign Currency Exchange Forward Contracts [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Investments [Line Items] | ||
Gross realized investment gains | $ 7.7 | $ 11.2 |
Gross realized investment losses | (7) | (8.6) |
Net realized investment gains on foreign currency exchange forward contracts | 0.7 | 2.6 |
Operational Currency Exposure [Member] | ||
Schedule of Investments [Line Items] | ||
Gross realized investment gains | 0.3 | 4.3 |
Gross realized investment losses | (2.1) | (0.6) |
Asset Manager Investment Exposure [Member] | ||
Schedule of Investments [Line Items] | ||
Gross realized investment gains | 1.1 | 4.3 |
Gross realized investment losses | (0.2) | (5.9) |
Total return strategy [Member] | ||
Schedule of Investments [Line Items] | ||
Gross realized investment gains | 6.3 | 2.6 |
Gross realized investment losses | $ (4.7) | $ (2.1) |
Investments - Components of Res
Investments - Components of Restricted Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Securities pledged as collateral for letters of credit | $ 126.1 | $ 62.8 |
Securities and cash on deposit supporting Lloyd’s business | 391.8 | 373.9 |
Total restricted investments | 701.2 | 608.4 |
Securities Deposits For Regulatory and Other Purposes [Member] | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Securities on deposit for regulatory and other purposes | $ 183.3 | $ 171.7 |
Investments - Financial Assets
Investments - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | $ 4,903.5 | $ 4,787 | [1] |
Other Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 483.3 | 489.8 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 4,516.2 | 4,411.6 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 3,573.3 | 3,460.4 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Collateralized Loan Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 227.1 | 223.7 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Residential Mortgage-backed Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 408.5 | 410.8 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 248.2 | 236.2 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Governments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 238 | 216.8 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 222.8 | 239.8 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Corporate Bonds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 1,806.5 | 1,757.5 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 210.4 | 202.8 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Asset-backed Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 211.8 | 172.8 | |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 403.2 | 354.5 | |
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 96 | 114.4 | |
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 443.7 | 482.3 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 1,036.8 | 1,026.9 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Fixed Maturities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 239.5 | 226.7 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Fixed Maturities [Member] | Collateralized Loan Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Fixed Maturities [Member] | Residential Mortgage-backed Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 238.3 | 226.7 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Fixed Maturities [Member] | Foreign Governments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Fixed Maturities [Member] | Corporate Bonds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 1.2 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Fixed Maturities [Member] | Asset-backed Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Equity Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 394.5 | 346.3 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Other Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Short-Term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 402.8 | 453.9 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 3,468.5 | 3,374.3 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Fixed Maturities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 3,331.6 | 3,231.5 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Fixed Maturities [Member] | Collateralized Loan Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 227.1 | 223.7 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Fixed Maturities [Member] | Residential Mortgage-backed Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 408.5 | 410.8 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 9.9 | 9.5 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Fixed Maturities [Member] | Foreign Governments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 238 | 216.8 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 222.8 | 239.8 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Fixed Maturities [Member] | Corporate Bonds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 1,803.1 | 1,755.3 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 210.4 | 202.8 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Fixed Maturities [Member] | Asset-backed Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 211.8 | 172.8 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Equity Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Other Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 96 | 114.4 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Short-Term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 40.9 | 28.4 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 10.9 | 10.4 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Fixed Maturities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 2.2 | 2.2 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Fixed Maturities [Member] | Collateralized Loan Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Fixed Maturities [Member] | Residential Mortgage-backed Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Fixed Maturities [Member] | Foreign Governments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Fixed Maturities [Member] | Corporate Bonds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 2.2 | 2.2 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Fixed Maturities [Member] | Asset-backed Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Equity Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 8.7 | 8.2 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Other Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Short-Term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | $ 0 | $ 0 | |
[1] | Derived from audited consolidated financial statements. |
Investments - Schedule of Recon
Investments - Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3 (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 10.4 | $ 4.2 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income (loss) | 0.5 | 0.2 |
Included in other comprehensive income (loss) | 0 | 0.3 |
Purchases | 0 | 7.3 |
Issuances | 0 | 0 |
Sales | 0 | (1.6) |
Settlements | 0 | 0 |
Ending balance | 10.9 | 10.4 |
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at end of period | 0 | 0 |
Credit-Financial [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 2.2 | 1.9 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income (loss) | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0.3 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Ending balance | 2.2 | 2.2 |
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at end of period | 0 | 0 |
Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 8.2 | 2.3 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income (loss) | 0.5 | 0.2 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 7.3 |
Issuances | 0 | 0 |
Sales | 0 | (1.6) |
Settlements | 0 | 0 |
Ending balance | 8.7 | 8.2 |
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at end of period | $ 0 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)property | Mar. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Lease cost | $ 5.3 | $ 4.5 |
Number of leased properties | property | 3 | |
Lease income | $ 0.8 | $ 0.8 |
Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | |
Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 14 years |
Leases - Components of Leases (
Leases - Components of Leases (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | [1] | |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 115.3 | ||
Operating lease liabilities | $ 128.3 | $ 0 | |
Operating lease weighted-average remaining lease term | 10 years 3 months 4 days | ||
Operating lease weighted-average discount rate | 3.87% | ||
[1] | Derived from audited consolidated financial statements. |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Leases [Abstract] | ||
Operating leases costs | $ 5.1 | |
Variable lease costs | 0.3 | |
Sublease income | (0.1) | |
Total lease costs | 5.3 | $ 4.5 |
Operating cash flows from operating lease (fixed payments) | 4.7 | |
Operating cash flows from operating lease (liability reduction) | $ 3.7 |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Operating Lease Liabilities, Payments Due [Abstract] | |||
2019 | $ 14.2 | ||
2020 | 18.3 | ||
2021 | 17.5 | ||
2022 | 14.7 | ||
2023 | 12.3 | ||
Thereafter | 80.6 | ||
Total future minimum lease payments | 157.6 | ||
Less imputed interest | (29.3) | ||
Total operating lease liability | $ 128.3 | $ 0 | [1] |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2019 | 18.7 | ||
2020 | 18.6 | ||
2021 | 17.5 | ||
2022 | 14.7 | ||
2023 | 12.3 | ||
Thereafter | 80.1 | ||
Total future minimum lease payments | $ 161.9 | ||
[1] | Derived from audited consolidated financial statements. |
Reserves for Losses and Loss _3
Reserves for Losses and Loss Adjustment Expenses - Reserves for Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | [1] | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Net reserves beginning of the year | $ 2,562.9 | $ 2,488 | ||
Losses and LAE incurred during current calendar year, net of reinsurance: | ||||
Current accident year | 240.4 | 239.2 | ||
Prior accident years | (2.5) | (2) | ||
Losses and LAE incurred during calendar year, net of reinsurance | 237.9 | 237.2 | ||
Losses and LAE payments made during current calendar year, net of reinsurance: | ||||
Current accident year | 34.7 | 33.3 | ||
Prior accident years | 221 | 186.6 | ||
Losses and LAE payments made during current calendar year, net of reinsurance: | 255.7 | 219.9 | ||
Change in participation interest | (14.6) | (16.9) | ||
Foreign exchange adjustments | (9.1) | (0.8) | ||
Net reserves - end of period | 2,521.4 | 2,534.8 | ||
Reinsurance recoverables on unpaid losses and LAE, end of period | 2,147.5 | 1,748.8 | ||
Gross reserves - end of period | 4,668.9 | 4,283.6 | $ 4,654.6 | |
Ariscom [Member] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Net Ariscom reserves acquired | $ 0 | $ 47.2 | ||
[1] | Derived from audited consolidated financial statements. |
Reserves for Losses and Loss _4
Reserves for Losses and Loss Adjustment Expenses - Impact from (Favorable) Unfavorable Development of Prior Accident Years' Loss and LAE Reserves on Each Reporting Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items] | ||
Total unfavorable (favorable) prior-year development | $ (2.5) | $ (2) |
U.S. Operations [Member] | ||
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items] | ||
Total unfavorable (favorable) prior-year development | (4) | (1) |
International Operations [Member] | ||
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items] | ||
Total unfavorable (favorable) prior-year development | 0.8 | (2.8) |
Run Off Lines [Member] | ||
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items] | ||
Total unfavorable (favorable) prior-year development | $ 0.7 | $ 1.8 |
Disclosures about Fair Value _3
Disclosures about Fair Value of Financial Instruments - Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Junior Subordinated Debentures [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | $ 257 | $ 257 |
Junior Subordinated Debentures [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 252.6 | 248.2 |
Junior Subordinated Debentures [Member] | Trust Preferred Debentures [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 172.7 | 172.7 |
Junior Subordinated Debentures [Member] | Trust Preferred Debentures [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 166.3 | 163.2 |
Junior Subordinated Debentures [Member] | Junior Subordinated Debentures, Maybrooke [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 84.3 | 84.3 |
Junior Subordinated Debentures [Member] | Junior Subordinated Debentures, Maybrooke [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 86.3 | 85 |
Senior Unsecured Fixed Rate Notes [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 139.9 | 139.8 |
Senior Unsecured Fixed Rate Notes [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 142.6 | 139.5 |
Floating Rate Loan Stock [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 57.4 | 57.8 |
Floating Rate Loan Stock [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | $ 55.2 | $ 54.5 |
Shareholders Equity - Additiona
Shareholders Equity - Additional Information (Detail) - USD ($) | Mar. 15, 2019 | Feb. 20, 2019 | Mar. 23, 2018 | Mar. 07, 2018 | Feb. 20, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | May 03, 2016 |
Class of Stock [Line Items] | |||||||||
Dividend declared per common share (in dollars per share) | $ 0.31 | $ 0.27 | $ 0.31 | $ 0.27 | $ 0.27 | ||||
Cash dividends paid - common shares, total | $ 10,800,000 | $ 9,300,000 | $ 10,800,000 | $ 9,300,000 | |||||
Stock dividend percent | 15.00% | ||||||||
2016 Repurchase Authorization [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Total number of shares authorized for purchase | $ 150,000,000 | ||||||||
Remaining number of shares available under repurchase authorization | $ 53,300,000 | ||||||||
Stock Dividend [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Stock dividend percent | 15.00% | ||||||||
Additional stock issued as dividend (in shares) | 4,397,520 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Changes in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2018 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 1,746.7 | [1] | $ 1,819.7 | |
Other comprehensive income before reclassifications | 47.9 | (21.8) | ||
Amounts reclassified from accumulated other comprehensive income | 2.6 | (10.2) | ||
Net current-period other comprehensive income | 50.5 | (32) | ||
Ending Balance | 1,880.6 | 1,787.4 | ||
Foreign Currency Translation Adjustments [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (22.4) | (19) | ||
Other comprehensive income before reclassifications | 0.2 | (1.1) | ||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | ||
Net current-period other comprehensive income | 0.2 | (1.1) | ||
Ending Balance | (22.2) | (20.1) | ||
Foreign Currency Translation Adjustments [Member] | ASU 2016-01 [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Cumulative effect of adoption of ASU | $ 0 | |||
Foreign Currency Translation Adjustments [Member] | ASU 2018-02 [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Cumulative effect of adoption of ASU | 0 | |||
Unrealized Holding Gains on Securities [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (49) | 121.9 | ||
Other comprehensive income before reclassifications | 47.7 | (20.7) | ||
Amounts reclassified from accumulated other comprehensive income | 2.6 | (10.2) | ||
Net current-period other comprehensive income | 50.3 | (30.9) | ||
Ending Balance | 1.3 | (5.6) | ||
Unrealized Holding Gains on Securities [Member] | ASU 2016-01 [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Cumulative effect of adoption of ASU | (117.5) | |||
Unrealized Holding Gains on Securities [Member] | ASU 2018-02 [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Cumulative effect of adoption of ASU | 20.9 | |||
Defined Benefit Pension Plans [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (6.7) | (6.3) | ||
Other comprehensive income before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | ||
Net current-period other comprehensive income | 0 | 0 | ||
Ending Balance | (6.7) | (6.3) | ||
Defined Benefit Pension Plans [Member] | ASU 2016-01 [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Cumulative effect of adoption of ASU | 0 | |||
Defined Benefit Pension Plans [Member] | ASU 2018-02 [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Cumulative effect of adoption of ASU | 0 | |||
Accumulated Other Comprehensive Income (Loss) Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (78.1) | 96.6 | ||
Ending Balance | $ (27.6) | $ (32) | ||
Accumulated Other Comprehensive Income (Loss) Member] | ASU 2016-01 [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Cumulative effect of adoption of ASU | (117.5) | |||
Accumulated Other Comprehensive Income (Loss) Member] | ASU 2018-02 [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Cumulative effect of adoption of ASU | $ 20.9 | |||
[1] | Derived from audited consolidated financial statements. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive (Loss) Income - Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Unrealized gains and losses on securities: | ||
Net of taxes | $ 2.6 | $ (10.2) |
Unrealized Gains and Losses on Securities [Member] | ||
Unrealized gains and losses on securities: | ||
Net realized investment loss (gains) | 3.1 | (12.5) |
(Benefit) provision for income taxes | (0.5) | 2.3 |
Net of taxes | $ 2.6 | $ (10.2) |
Net Income Per Common Share - N
Net Income Per Common Share - Net Income (Loss) Per Common Share on Basic and Diluted Basis (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 91.2 | $ 24.8 |
Weighted average common shares outstanding - basic (in shares) | 33,984,329 | 33,868,749 |
Effect of dilutive securities: | ||
Equity compensation awards (in shares) | 753,610 | 871,594 |
Weighted average common shares outstanding - diluted (in shares) | 34,737,939 | 34,740,343 |
Net income per common share: | ||
Basic (in dollars per share) | $ 2.68 | $ 0.73 |
Diluted (in dollars per share) | $ 2.63 | $ 0.71 |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Detail) - shares | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Treasury shares (in shares) | 11,315,889 | 11,099,593 | 11,315,889 |
Equity compensation awards with anti-dilutive effect (in shares) | 0 | 0 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Interest Paid and Income Taxes Paid (Recovered) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow [Line Items] | ||
Total interest paid | $ 8.8 | $ 7.2 |
Income taxes paid | 0.2 | 1.5 |
Income taxes recovered | 0 | 0 |
Income taxes paid, net | 0.2 | 1.5 |
Senior Unsecured Fixed Rate Notes [Member] | ||
Supplemental Cash Flow [Line Items] | ||
Total interest paid | 2.3 | 2.3 |
Junior Subordinated Debentures [Member] | ||
Supplemental Cash Flow [Line Items] | ||
Total interest paid | 4.1 | 3.4 |
Other Indebtedness [Member] | ||
Supplemental Cash Flow [Line Items] | ||
Total interest paid | $ 2.4 | $ 1.5 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | ||
May 31, 2014 | Mar. 31, 2019 | Mar. 31, 2018 | Nov. 30, 2007 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, award vesting period, years | 5 years | |||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 7 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, compensation expense | $ 3,700,000 | $ 3,400,000 | ||
Employee service share-based compensation, unrecognized compensation costs on non-vested awards | $ 34,500,000 | |||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, award vesting period, years | 1 year | |||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, award vesting period, years | 4 years | |||
Stock-Settled SARs Activity [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, compensation expense | $ 400,000 | 1,100,000 | ||
Employee service share-based compensation, unrecognized compensation costs on non-vested awards | 0 | |||
Cash Settled S A Rs Activity [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, compensation expense | 200,000 | $ 500,000 | ||
Employee service share-based compensation, unrecognized compensation costs on non-vested awards | $ 0 | |||
2014 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | 4,500,000 | |||
Share-based compensation arrangement by share-based payment award, number of shares available for grant (in shares) | 1,460,000 | |||
2007 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, additional number of shares authorized (in shares) | 2,800,000 | |||
2007 Plan [Member] | Share Options and Stock Appreciation Rights [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Count of restricted shares, settle in common shares (in shares) | 1 | |||
2007 Plan [Member] | Restricted Shares, RSUs, Performance Units, Performance Shares, and Other [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Count of restricted shares, settle in common shares (in shares) | 2.75 |
Share-based Compensation - Fair
Share-based Compensation - Fair Value Assumptions (Detail) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Risk-free rate of return | 2.23% | 2.61% |
Expected dividend yields | 1.83% | 1.71% |
Expected award life (years) | 4 years 5 months 27 days | 4 years 5 months 23 days |
Expected volatility | 18.18% | 18.44% |
Share-based Compensation - Summ
Share-based Compensation - Summary of Restricted Share Activity (Detail) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 897,005 |
Granted (in shares) | shares | 179,537 |
Vested and issued (in shares) | shares | (141,850) |
Expired or forfeited (in shares) | shares | (48,038) |
Outstanding, ending balance (in shares) | shares | 886,654 |
Weighted-Average Grant Date Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 46.82 |
Granted (in dollars per share) | $ / shares | 68.27 |
Vested and issued (in dollars per share) | $ / shares | 49.42 |
Expired or forfeited (in dollars per share) | $ / shares | 54.80 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 50.17 |
Share-based Compensation - Su_2
Share-based Compensation - Summary of SARs Activity (Detail) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Stock-Settled SARs Activity [Member] | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 810,759 |
Exercised (in shares) | shares | (29,516) |
Expired or forfeited (in shares) | shares | (7,167) |
Outstanding, ending balance (in shares) | shares | 774,076 |
Weighted-Average Exercise Price | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 33.88 |
Exercised (in dollars per share) | $ / shares | 35.64 |
Expired or forfeited (in dollars per share) | $ / shares | 37.85 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 33.77 |
Cash Settled S A Rs Activity [Member] | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 58,428 |
Exercised (in shares) | shares | (12,869) |
Expired or forfeited (in shares) | shares | (3,656) |
Outstanding, ending balance (in shares) | shares | 41,903 |
Weighted-Average Exercise Price | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 30.71 |
Exercised (in dollars per share) | $ / shares | 25.22 |
Expired or forfeited (in dollars per share) | $ / shares | 19.37 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 33.38 |
Underwriting, Acquisition and_3
Underwriting, Acquisition and Insurance Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Underwriting Acquisition And Insurance Expenses [Abstract] | ||
Commissions | $ 63.3 | $ 68 |
General expenses | 89.1 | 87.8 |
Premium taxes, boards and bureaus | 8.3 | 9.3 |
Underwriting, acquisition and insurance expenses, total | 160.7 | 165.1 |
Net deferral of policy acquisition costs | 0 | (4.9) |
Total underwriting, acquisition and insurance expenses | $ 160.7 | $ 160.2 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)subsidiary | Mar. 31, 2018USD ($) | |
Income Taxes Disclosure [Line Items] | ||
Number of subsidiaries subject to corporate tax | subsidiary | 8 | |
Net operating losses carryback period | 2 years | |
Capital losses carryback period | 3 years | |
Change in valuation allowance | $ (0.6) | $ (2.7) |
Unrecognized tax benefits | $ 0 | $ 0 |
Income Taxes - Schedule of Pre-
Income Taxes - Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Examination [Line Items] | ||
Pre-Tax Income (Loss) | $ 100.1 | $ 25 |
Effective Tax Rate | 8.90% | 0.70% |
Bermuda [Member] | ||
Income Tax Examination [Line Items] | ||
Pre-Tax Income (Loss) | $ 32 | $ 25.3 |
Effective Tax Rate | 0.00% | 0.00% |
United States [Member] | ||
Income Tax Examination [Line Items] | ||
Pre-Tax Income (Loss) | $ 69.4 | $ (6.3) |
Effective Tax Rate | 14.40% | 23.00% |
United Kingdom [Member] | ||
Income Tax Examination [Line Items] | ||
Pre-Tax Income (Loss) | $ (3.5) | $ 6.2 |
Effective Tax Rate | 31.50% | 24.50% |
Belgium [Member] | ||
Income Tax Examination [Line Items] | ||
Pre-Tax Income (Loss) | $ 0 | $ 0.1 |
Effective Tax Rate | 30.80% | 35.80% |
Brazil [Member] | ||
Income Tax Examination [Line Items] | ||
Pre-Tax Income (Loss) | $ 1.8 | $ (1.4) |
Effective Tax Rate | 0.00% | 0.00% |
United Arab Emirates [Member] | ||
Income Tax Examination [Line Items] | ||
Pre-Tax Income (Loss) | $ 0.2 | $ 0.2 |
Effective Tax Rate | 0.00% | 0.00% |
Ireland [Member] | ||
Income Tax Examination [Line Items] | ||
Pre-Tax Income (Loss) | $ 0 | $ 0 |
Effective Tax Rate | 0.00% | 0.00% |
Italy [Member] | ||
Income Tax Examination [Line Items] | ||
Pre-Tax Income (Loss) | $ (0.7) | $ 0 |
Effective Tax Rate | 0.00% | 0.00% |
Malta [Member] | ||
Income Tax Examination [Line Items] | ||
Pre-Tax Income (Loss) | $ 0.9 | $ 0.9 |
Effective Tax Rate | 0.00% | 0.00% |
Luxembourg [Member] | ||
Income Tax Examination [Line Items] | ||
Pre-Tax Income (Loss) | $ 0 | $ 0 |
Effective Tax Rate | 0.00% | 0.00% |
Switzerland [Member] | ||
Income Tax Examination [Line Items] | ||
Pre-Tax Income (Loss) | $ 0 | $ 0 |
Effective Tax Rate | 0.00% | 21.20% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision (benefit) at expected rate | $ 14.9 | $ (0.4) |
Tax effect of: | ||
Nontaxable investment income | (0.4) | (0.5) |
Foreign exchange adjustments | 0.5 | (0.2) |
Withholding taxes | 0 | 0.1 |
Change in valuation allowance | (0.6) | (2.7) |
Other | (5.5) | 3.9 |
Income tax provision | $ 8.9 | $ 0.2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual commitments related to its limited partnership investments (up to) | $ 125.9 |
Contractual commitments period (not to exceed) | 13 years |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 2 | |
Assets associated with trade capital providers | $ | $ 760.9 | $ 880.4 |
Segment Information - Revenue a
Segment Information - Revenue and Income (Loss) Before Income Taxes for Each Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Earned premiums | $ 420.5 | $ 414.7 |
Net investment income | 33.9 | 36 |
Fee and other income | 2.3 | 2 |
Net realized investment gains (losses) before income taxes | 52.5 | (15.7) |
Total revenue | 509.2 | 437 |
Income (loss) before income taxes | 100.1 | 25 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Income (loss) before income taxes | 59.7 | 56.2 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net investment income | 0.3 | 2.4 |
Income (loss) before income taxes | (12.1) | (15.5) |
U.S. Operations [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Earned premiums | 273.8 | 262.3 |
Net investment income | 23.1 | 22.6 |
Income (loss) before income taxes | 42.9 | 34 |
International Operations [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Earned premiums | 146.7 | 152.4 |
Net investment income | 9.1 | 8.8 |
Income (loss) before income taxes | 16.2 | 22.9 |
Run Off Lines [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net investment income | 1.4 | 2.2 |
Income (loss) before income taxes | $ 0.6 | $ (0.7) |
Segment Information - Schedule
Segment Information - Schedule of Earned Premiums by Geographic Location (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total earned premiums | $ 420.5 | $ 414.7 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total earned premiums | 272.6 | 261.4 |
United Kingdom [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total earned premiums | 97.1 | 114.1 |
Bermuda [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total earned premiums | 16.6 | 20.5 |
Malta [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total earned premiums | 20.8 | 5.7 |
Other Jurisdiction [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total earned premiums | $ 13.4 | $ 13 |
Segment Information - Identifia
Segment Information - Identifiable Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Identifiable assets | $ 9,954.5 | $ 9,558.2 | [1] |
Operating Segments [Member] | U.S. Operations [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Identifiable assets | 5,179.6 | 4,707.8 | |
Operating Segments [Member] | International Operations [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Identifiable assets | 4,219 | 3,984.7 | |
Operating Segments [Member] | Run Off Lines [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Identifiable assets | 364.3 | 444.8 | |
Corporate and Other [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Identifiable assets | $ 191.6 | $ 420.9 | |
[1] | Derived from audited consolidated financial statements. |
Senior Unsecured Fixed Rate N_3
Senior Unsecured Fixed Rate Notes - Additional Information (Detail) - USD ($) | 1 Months Ended | ||
Sep. 30, 2012 | Mar. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Principal amount of senior note | $ 143,800,000 | $ 143,800,000 | |
Senior Unsecured Fixed Rate Notes [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Principal amount of senior note | $ 143,750,000 | ||
Interest rate stated percentage | 6.50% | ||
Redemption price, percentage | 100.00% |
Senior Unsecured Fixed Rate N_4
Senior Unsecured Fixed Rate Notes - Schedule Of Unamortized Debt Issuance Costs Deducted From Carrying Value Of Debt Liability (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
Principal | $ 143.8 | $ 143.8 | |
Less: unamortized debt issuance costs | (3.9) | (4) | |
Senior unsecured fixed rate notes, less unamortized debt issuance costs | $ 139.9 | $ 139.8 | [1] |
[1] | Derived from audited consolidated financial statements. |
Senior Unsecured Fixed Rate N_5
Senior Unsecured Fixed Rate Notes - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Assets | |||||
Investments | $ 4,903.5 | $ 4,787 | [1] | ||
Cash | 152.7 | 139.2 | [1] | $ 173.7 | $ 176.6 |
Accrued investment income | 27.5 | 27.2 | [1] | ||
Premiums receivable | 673.2 | 649.9 | [1] | ||
Reinsurance recoverables | 2,661.4 | 2,688.3 | [1] | ||
Goodwill and other intangible assets, net | 270.1 | 270.5 | |||
Current income taxes receivable, net | 5 | 8.2 | [1] | ||
Deferred acquisition costs, net | 167.9 | 167.3 | [1] | ||
Ceded unearned premiums | 562.5 | 457.7 | [1] | ||
Operating lease right-of-use assets | 115.3 | ||||
Other assets | 415.4 | 362.9 | [1] | ||
Intercompany note receivable | 0 | 0 | |||
Investments in subsidiaries | 0 | 0 | |||
Total assets | 9,954.5 | 9,558.2 | [1] | ||
Liabilities and Shareholders' Equity | |||||
Reserves for losses and loss adjustment expenses | 4,668.9 | 4,654.6 | [1] | 4,283.6 | |
Unearned premiums | 1,344.5 | 1,300.9 | [1] | ||
Funds held and ceded reinsurance payable, net | 1,083.4 | 1,007.7 | |||
Debt | 579.9 | 580.2 | |||
Deferred tax liabilities, net | 20.7 | 6.2 | [1] | ||
Accrued underwriting expenses and other liabilities | 248.2 | 261.9 | [1] | ||
Operating lease liabilities | 128.3 | 0 | [1] | ||
Due to (from) affiliates | 0 | 0 | |||
Intercompany note payable | 0 | 0 | |||
Total liabilities | 8,073.9 | 7,811.5 | [1] | ||
Total shareholders' equity | 1,880.6 | 1,746.7 | [1] | 1,787.4 | 1,819.7 |
Total liabilities and shareholders' equity | 9,954.5 | 9,558.2 | [1] | ||
Consolidating Adjustments [Member] | |||||
Assets | |||||
Investments | 0 | 0 | |||
Cash | 0 | 0 | 0 | 0 | |
Accrued investment income | 0 | 0 | |||
Premiums receivable | 0 | 0 | |||
Reinsurance recoverables | 0 | 0 | |||
Goodwill and other intangible assets, net | 0 | 0 | |||
Current income taxes receivable, net | 0 | 0 | |||
Deferred acquisition costs, net | 0 | 0 | |||
Ceded unearned premiums | 0 | 0 | |||
Operating lease right-of-use assets | 0 | ||||
Other assets | 0 | 0 | |||
Intercompany note receivable | 0 | 0 | |||
Investments in subsidiaries | (1,999.4) | (1,852.7) | |||
Total assets | (1,999.4) | (1,852.7) | |||
Liabilities and Shareholders' Equity | |||||
Reserves for losses and loss adjustment expenses | 0 | 0 | |||
Unearned premiums | 0 | 0 | |||
Funds held and ceded reinsurance payable, net | 0 | 0 | |||
Debt | 0 | 0 | |||
Deferred tax liabilities, net | 0 | 0 | |||
Accrued underwriting expenses and other liabilities | 0 | 0 | |||
Operating lease liabilities | 0 | ||||
Due to (from) affiliates | (13.1) | (8.5) | |||
Intercompany note payable | 0 | 0 | |||
Total liabilities | (13.1) | (8.5) | |||
Total shareholders' equity | (1,986.3) | (1,844.2) | |||
Total liabilities and shareholders' equity | (1,999.4) | (1,852.7) | |||
Other Subsidiaries and Eliminations [Member] | |||||
Assets | |||||
Investments | 1,627.6 | 1,607.3 | |||
Cash | 117.5 | 105.8 | 114 | 127.9 | |
Accrued investment income | 7.6 | 6.9 | |||
Premiums receivable | 451 | 420.4 | |||
Reinsurance recoverables | 1,002.3 | 1,053.1 | |||
Goodwill and other intangible assets, net | 104.8 | 104.8 | |||
Current income taxes receivable, net | (1.1) | (0.9) | |||
Deferred acquisition costs, net | 83.3 | 81.1 | |||
Ceded unearned premiums | 297.6 | 207.3 | |||
Operating lease right-of-use assets | 30.1 | ||||
Other assets | 215.6 | 181.9 | |||
Intercompany note receivable | (54.4) | (53.7) | |||
Investments in subsidiaries | 0 | 0 | |||
Total assets | 3,881.9 | 3,714 | |||
Liabilities and Shareholders' Equity | |||||
Reserves for losses and loss adjustment expenses | 1,841.1 | 1,883.2 | |||
Unearned premiums | 558.9 | 503.5 | |||
Funds held and ceded reinsurance payable, net | 328.5 | 268.4 | |||
Debt | 141.7 | 142.1 | |||
Deferred tax liabilities, net | (1) | 0.6 | |||
Accrued underwriting expenses and other liabilities | 139.1 | 142.3 | |||
Operating lease liabilities | 32.6 | ||||
Due to (from) affiliates | (3.1) | (2) | |||
Intercompany note payable | 0 | (19.1) | |||
Total liabilities | 3,037.8 | 2,919 | |||
Total shareholders' equity | 844.1 | 795 | |||
Total liabilities and shareholders' equity | 3,881.9 | 3,714 | |||
Argo Group International Holdings, Ltd (Parent Guarantor) [Member] | |||||
Assets | |||||
Investments | 1.9 | 3.8 | |||
Cash | 1.9 | 1.7 | 0.3 | 0.9 | |
Accrued investment income | 0 | 0 | |||
Premiums receivable | 0 | 0 | |||
Reinsurance recoverables | 0 | 0 | |||
Goodwill and other intangible assets, net | 41.6 | 41.9 | |||
Current income taxes receivable, net | 0 | 0 | |||
Deferred acquisition costs, net | 0 | 0 | |||
Ceded unearned premiums | 0 | 0 | |||
Operating lease right-of-use assets | 8.7 | ||||
Other assets | 10.6 | 15.7 | |||
Intercompany note receivable | 0 | 0 | |||
Investments in subsidiaries | 1,999.4 | 1,852.7 | |||
Total assets | 2,064.1 | 1,915.8 | |||
Liabilities and Shareholders' Equity | |||||
Reserves for losses and loss adjustment expenses | 0 | 0 | |||
Unearned premiums | 0 | 0 | |||
Funds held and ceded reinsurance payable, net | 0 | 0 | |||
Debt | 153.4 | 153.4 | |||
Deferred tax liabilities, net | 0 | 0 | |||
Accrued underwriting expenses and other liabilities | 7.8 | 7.2 | |||
Operating lease liabilities | 9.2 | ||||
Due to (from) affiliates | 13.1 | 8.5 | |||
Intercompany note payable | 0 | 0 | |||
Total liabilities | 183.5 | 169.1 | |||
Total shareholders' equity | 1,880.6 | 1,746.7 | |||
Total liabilities and shareholders' equity | 2,064.1 | 1,915.8 | |||
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member] | |||||
Assets | |||||
Investments | 3,274 | 3,175.9 | |||
Cash | 33.3 | 31.7 | $ 59.4 | $ 47.8 | |
Accrued investment income | 19.9 | 20.3 | |||
Premiums receivable | 222.2 | 229.5 | |||
Reinsurance recoverables | 1,659.1 | 1,635.2 | |||
Goodwill and other intangible assets, net | 123.7 | 123.8 | |||
Current income taxes receivable, net | 6.1 | 9.1 | |||
Deferred acquisition costs, net | 84.6 | 86.2 | |||
Ceded unearned premiums | 264.9 | 250.4 | |||
Operating lease right-of-use assets | 76.5 | ||||
Other assets | 189.2 | 165.3 | |||
Intercompany note receivable | 54.4 | 53.7 | |||
Investments in subsidiaries | 0 | 0 | |||
Total assets | 6,007.9 | 5,781.1 | |||
Liabilities and Shareholders' Equity | |||||
Reserves for losses and loss adjustment expenses | 2,827.8 | 2,771.4 | |||
Unearned premiums | 785.6 | 797.4 | |||
Funds held and ceded reinsurance payable, net | 754.9 | 739.3 | |||
Debt | 284.8 | 284.7 | |||
Deferred tax liabilities, net | 21.7 | 5.6 | |||
Accrued underwriting expenses and other liabilities | 101.3 | 112.4 | |||
Operating lease liabilities | 86.5 | ||||
Due to (from) affiliates | 3.1 | 2 | |||
Intercompany note payable | 0 | 19.1 | |||
Total liabilities | 4,865.7 | 4,731.9 | |||
Total shareholders' equity | 1,142.2 | 1,049.2 | |||
Total liabilities and shareholders' equity | $ 6,007.9 | $ 5,781.1 | |||
[1] | Derived from audited consolidated financial statements. |
Senior Unsecured Fixed Rate N_6
Senior Unsecured Fixed Rate Notes - Condensed Consolidating Statement of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Premiums and other revenue: | ||
Earned premiums | $ 420.5 | $ 414.7 |
Net investment income | 33.9 | 36 |
Fee and other income | 2.3 | 2 |
Net realized investment gains (losses) before income taxes | 52.5 | (15.7) |
Total revenue | 509.2 | 437 |
Expenses: | ||
Losses and loss adjustment expenses | 237.9 | 237.2 |
Underwriting, acquisition and insurance expenses | 160.7 | 160.2 |
Interest expense | 8.5 | 7.7 |
Fee and other expense | 1.3 | 2 |
Foreign currency exchange losses | 0.7 | 4.9 |
Total expenses | 409.1 | 412 |
Income before income taxes | 100.1 | 25 |
Income tax provision | 8.9 | 0.2 |
Net (loss) income before equity in earnings of subsidiaries | 91.2 | 24.8 |
Equity in undistributed earnings of subsidiaries | 0 | 0 |
Net income | 91.2 | 24.8 |
Consolidating Adjustments [Member] | ||
Premiums and other revenue: | ||
Earned premiums | 0 | 0 |
Net investment income | 0 | 0 |
Fee and other income | 0 | 0 |
Net realized investment gains (losses) before income taxes | 0 | 0 |
Total revenue | 0 | 0 |
Expenses: | ||
Losses and loss adjustment expenses | 0 | 0 |
Underwriting, acquisition and insurance expenses | 0 | 0 |
Interest expense | 0 | 0 |
Fee and other expense | 0 | 0 |
Foreign currency exchange losses | 0 | 0 |
Total expenses | 0 | 0 |
Income before income taxes | 0 | 0 |
Income tax provision | 0 | 0 |
Net (loss) income before equity in earnings of subsidiaries | 0 | 0 |
Equity in undistributed earnings of subsidiaries | (94.4) | (29.6) |
Net income | (94.4) | (29.6) |
Other Subsidiaries and Eliminations [Member] | ||
Premiums and other revenue: | ||
Earned premiums | 154 | 257.8 |
Net investment income | 10.8 | 14.6 |
Fee and other income | 1.2 | 1.2 |
Net realized investment gains (losses) before income taxes | 6.7 | 0.1 |
Total revenue | 172.7 | 273.7 |
Expenses: | ||
Losses and loss adjustment expenses | 79.9 | 141.8 |
Underwriting, acquisition and insurance expenses | 55.9 | 88 |
Interest expense | 2.1 | 2.1 |
Fee and other expense | 0.5 | 0.6 |
Foreign currency exchange losses | 0.4 | 4.8 |
Total expenses | 138.8 | 237.3 |
Income before income taxes | 33.9 | 36.4 |
Income tax provision | (1.1) | 1.6 |
Net (loss) income before equity in earnings of subsidiaries | 35 | 34.8 |
Equity in undistributed earnings of subsidiaries | 0 | 0 |
Net income | 35 | 34.8 |
Argo Group International Holdings, Ltd (Parent Guarantor) [Member] | ||
Premiums and other revenue: | ||
Earned premiums | 0 | 0 |
Net investment income | (0.7) | (0.7) |
Fee and other income | 0 | 0 |
Net realized investment gains (losses) before income taxes | (0.1) | (0.4) |
Total revenue | (0.8) | (1.1) |
Expenses: | ||
Losses and loss adjustment expenses | 0 | 0 |
Underwriting, acquisition and insurance expenses | 0.7 | 2.4 |
Interest expense | 1.7 | 1.3 |
Fee and other expense | 0 | 0 |
Foreign currency exchange losses | 0 | 0 |
Total expenses | 2.4 | 3.7 |
Income before income taxes | (3.2) | (4.8) |
Income tax provision | 0 | 0 |
Net (loss) income before equity in earnings of subsidiaries | (3.2) | (4.8) |
Equity in undistributed earnings of subsidiaries | 94.4 | 29.6 |
Net income | 91.2 | 24.8 |
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member] | ||
Premiums and other revenue: | ||
Earned premiums | 266.5 | 156.9 |
Net investment income | 23.8 | 22.1 |
Fee and other income | 1.1 | 0.8 |
Net realized investment gains (losses) before income taxes | 45.9 | (15.4) |
Total revenue | 337.3 | 164.4 |
Expenses: | ||
Losses and loss adjustment expenses | 158 | 95.4 |
Underwriting, acquisition and insurance expenses | 104.1 | 69.8 |
Interest expense | 4.7 | 4.3 |
Fee and other expense | 0.8 | 1.4 |
Foreign currency exchange losses | 0.3 | 0.1 |
Total expenses | 267.9 | 171 |
Income before income taxes | 69.4 | (6.6) |
Income tax provision | 10 | (1.4) |
Net (loss) income before equity in earnings of subsidiaries | 59.4 | (5.2) |
Equity in undistributed earnings of subsidiaries | 0 | 0 |
Net income | $ 59.4 | $ (5.2) |
Senior Unsecured Fixed Rate N_7
Senior Unsecured Fixed Rate Notes - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |||
Condensed Financial Statements, Captions [Line Items] | |||||
Net cash flows from operating activities | $ 55.6 | $ 153.6 | $ 153.6 | ||
Cash flows from investing activities: | |||||
Proceeds from sales of investments | 272.5 | 555.4 | |||
Maturities and mandatory calls of fixed maturity investments | 65.8 | 144.8 | 144.8 | ||
Purchases of investments | (384.2) | (687.5) | |||
Change in short-term investments and foreign regulatory deposits | 38 | (161) | |||
Settlements of foreign currency exchange forward contracts | 3.6 | 1.7 | 1.7 | ||
Cash acquired with acquisition of Ariscom | 15.6 | ||||
Purchases of fixed assets and other, net | (27.4) | 2.5 | |||
Cash used in investing activities | (31.7) | (128.5) | (128.5) | ||
Cash flows from financing activities: | |||||
Payment on the intercompany note | 0 | ||||
Activity under stock incentive plans | 0.3 | 0.2 | 0.2 | ||
Repurchase of Company's common shares | 0 | (18.6) | (18.6) | ||
Payment of cash dividends to common shareholders | (10.8) | (9.3) | (9.3) | ||
Cash used in financing activities | (10.5) | (27.7) | (27.7) | ||
Effect of exchange rate changes on cash | 0.1 | (0.3) | (0.3) | ||
Change in cash | 13.5 | (2.9) | (2.9) | ||
Cash, beginning of year | 139.2 | [1] | 176.6 | 176.6 | |
Cash, end of period | 152.7 | 173.7 | 139.2 | [1] | |
Argo Group International Holdings, Ltd (Parent Guarantor) [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net cash flows from operating activities | 8.8 | 27.8 | |||
Cash flows from investing activities: | |||||
Proceeds from sales of investments | 0 | 0 | |||
Maturities and mandatory calls of fixed maturity investments | 0 | 0 | |||
Purchases of investments | 0 | 0 | |||
Change in short-term investments and foreign regulatory deposits | 1.9 | 0 | |||
Settlements of foreign currency exchange forward contracts | 0 | (0.6) | |||
Cash acquired with acquisition of Ariscom | 0 | ||||
Purchases of fixed assets and other, net | 0 | (0.1) | |||
Cash used in investing activities | 1.9 | (0.7) | |||
Cash flows from financing activities: | |||||
Payment on the intercompany note | 0 | ||||
Activity under stock incentive plans | 0.3 | 0.2 | |||
Repurchase of Company's common shares | (18.6) | ||||
Payment of cash dividends to common shareholders | (10.8) | (9.3) | |||
Cash used in financing activities | (10.5) | (27.7) | |||
Effect of exchange rate changes on cash | 0 | 0 | |||
Change in cash | 0.2 | (0.6) | |||
Cash, beginning of year | 1.7 | 0.9 | 0.9 | ||
Cash, end of period | 1.9 | 0.3 | 1.7 | ||
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net cash flows from operating activities | 29.5 | 53.2 | |||
Cash flows from investing activities: | |||||
Proceeds from sales of investments | 156.6 | 325 | |||
Maturities and mandatory calls of fixed maturity investments | 51.3 | 113.1 | |||
Purchases of investments | (249) | (475.2) | |||
Change in short-term investments and foreign regulatory deposits | 35.3 | (4.5) | |||
Settlements of foreign currency exchange forward contracts | 0.3 | (0.7) | |||
Cash acquired with acquisition of Ariscom | 0 | ||||
Purchases of fixed assets and other, net | (3.3) | 0.7 | |||
Cash used in investing activities | (8.8) | (41.6) | |||
Cash flows from financing activities: | |||||
Payment on the intercompany note | (19.1) | ||||
Activity under stock incentive plans | 0 | 0 | |||
Repurchase of Company's common shares | 0 | ||||
Payment of cash dividends to common shareholders | 0 | 0 | |||
Cash used in financing activities | (19.1) | 0 | |||
Effect of exchange rate changes on cash | 0 | 0 | |||
Change in cash | 1.6 | 11.6 | |||
Cash, beginning of year | 31.7 | 47.8 | 47.8 | ||
Cash, end of period | 33.3 | 59.4 | 31.7 | ||
Other Subsidiaries and Eliminations [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net cash flows from operating activities | 17.3 | 72.6 | |||
Cash flows from investing activities: | |||||
Proceeds from sales of investments | 115.9 | 230.4 | |||
Maturities and mandatory calls of fixed maturity investments | 14.5 | 31.7 | |||
Purchases of investments | (135.2) | (212.3) | |||
Change in short-term investments and foreign regulatory deposits | 0.8 | (156.5) | |||
Settlements of foreign currency exchange forward contracts | 3.3 | 3 | |||
Cash acquired with acquisition of Ariscom | 15.6 | ||||
Purchases of fixed assets and other, net | (24.1) | 1.9 | |||
Cash used in investing activities | (24.8) | (86.2) | |||
Cash flows from financing activities: | |||||
Payment on the intercompany note | 19.1 | ||||
Activity under stock incentive plans | 0 | 0 | |||
Repurchase of Company's common shares | 0 | ||||
Payment of cash dividends to common shareholders | 0 | 0 | |||
Cash used in financing activities | 19.1 | 0 | |||
Effect of exchange rate changes on cash | 0.1 | (0.3) | |||
Change in cash | 11.7 | (13.9) | |||
Cash, beginning of year | 105.8 | 127.9 | 127.9 | ||
Cash, end of period | 117.5 | 114 | 105.8 | ||
Consolidating Adjustments [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net cash flows from operating activities | 0 | 0 | |||
Cash flows from investing activities: | |||||
Proceeds from sales of investments | 0 | 0 | |||
Maturities and mandatory calls of fixed maturity investments | 0 | 0 | |||
Purchases of investments | 0 | 0 | |||
Change in short-term investments and foreign regulatory deposits | 0 | 0 | |||
Settlements of foreign currency exchange forward contracts | 0 | 0 | |||
Cash acquired with acquisition of Ariscom | 0 | ||||
Purchases of fixed assets and other, net | 0 | 0 | |||
Cash used in investing activities | 0 | 0 | |||
Cash flows from financing activities: | |||||
Payment on the intercompany note | 0 | ||||
Activity under stock incentive plans | 0 | 0 | |||
Repurchase of Company's common shares | 0 | ||||
Payment of cash dividends to common shareholders | 0 | 0 | |||
Cash used in financing activities | 0 | 0 | |||
Effect of exchange rate changes on cash | 0 | 0 | |||
Change in cash | 0 | 0 | |||
Cash, beginning of year | 0 | 0 | 0 | ||
Cash, end of period | $ 0 | $ 0 | $ 0 | ||
[1] | Derived from audited consolidated financial statements. |
Uncategorized Items - argo-2019
Label | Element | Value |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 117,500,000 |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (20,900,000) |