Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 07, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-15259 | |
Entity Registrant Name | ARGO GROUP INTERNATIONAL HOLDINGS, LTD. | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-0214719 | |
Entity Address, Address Line One | 90 Pitts Bay Road | |
Entity Address, City or Town | Pembroke | |
Entity Address, Postal Zip Code | HM08 | |
Entity Address, Country | BM | |
City Area Code | 441 | |
Local Phone Number | 296-5858 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 35,055,498 | |
Entity Central Index Key | 0001091748 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, Par Value of $1.00 Per Share | |
Trading Symbol | ARGO | |
Security Exchange Name | NYSE | |
Guarantee of Argo Group U.S., Inc. 6.500% Senior Notes due 2042 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 6.500% Senior Notes Due 2042 issued by Argo Group U.S., Inc. and The Guarantee With Respect Thereto | |
Trading Symbol | ARGD | |
Security Exchange Name | NYSE | |
Depositary Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/1000th Interest in 7.00% Resettable Fixed Rate Preference Share, Series A, Par Value $1.00 Per Share | |
Trading Symbol | ARGOPrA | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Investments: | ||
Fixed maturities available-for-sale, at fair value (amortized cost: 2022 - $4,131.5, 2021 - $4,203.2; allowance for expected credit losses: 2022 - $3.3, 2021 - $2.5) | $ 3,730.3 | $ 4,223.3 |
Commercial mortgage loans (cost: 2022 - $158.8; allowance for expected credit losses: 2022 - $0.2) | 158.6 | 0 |
Equity securities, at fair value (cost: 2022 - $55.3; 2021 - $70.3) | 43.9 | 56.3 |
Other investments (cost: 2022 - $401.6; 2021 - $387.0) | 401.6 | 387.2 |
Short-term investments, at fair value (amortized cost: 2022 - $570.2; 2021 - $655.4) | 570.7 | 655.8 |
Total investments | 4,905.1 | 5,322.6 |
Cash | 99.4 | 146.1 |
Accrued investment income | 23.1 | 20.9 |
Premiums receivable | 656.5 | 648.6 |
Reinsurance recoverables | 3,015.8 | 2,966.4 |
Goodwill | 136.1 | 147.3 |
Intangible assets, net of accumulated amortization | 0 | 17.3 |
Current income taxes receivable, net | 2.8 | 7.3 |
Deferred tax asset, net | 151.8 | 73.6 |
Deferred acquisition costs, net | 183.4 | 168 |
Ceded unearned premiums | 450.8 | 506.7 |
Operating lease right-of-use assets | 60.3 | 81.4 |
Other assets | 173.6 | 211.6 |
Total assets | 9,858.7 | 10,317.8 |
Liabilities and Shareholders' Equity | ||
Reserves for losses and loss adjustment expenses | 5,731.4 | 5,595 |
Unearned premiums | 1,404.9 | 1,466.8 |
Accrued underwriting expenses and other liabilities | 120.3 | 166.6 |
Ceded reinsurance payable, net | 503.1 | 724.4 |
Funds held | 253.7 | 76.6 |
Senior unsecured fixed rate notes | 140.5 | 140.3 |
Other indebtedness | 52.5 | 57 |
Junior subordinated debentures | 258.5 | 258.2 |
Operating lease liabilities | 68.9 | 97.7 |
Total liabilities | 8,533.8 | 8,582.6 |
Commitments and contingencies (Note 14) | ||
Shareholders' equity: | ||
Preferred shares and additional paid-in capital - $1.00 par, 30,000,000 shares authorized; 6,000 shares issued at September 30, 2022 and December 31, 2021, respectively; liquidation preference $25,000 | 144 | 144 |
Common shares - $1.00 par, 500,000,000 shares authorized; 46,339,696 and 46,192,867 shares issued at September 30, 2022 and December 31, 2021, respectively | 46.3 | 46.2 |
Additional paid-in capital | 1,392.6 | 1,386.4 |
Treasury shares (11,318,339 shares at September 30, 2022 and December 31, 2021, respectively) | (455.1) | (455.1) |
Retained earnings | 530 | 636.4 |
Accumulated other comprehensive loss, net of taxes | (332.9) | (22.7) |
Total shareholders' equity | 1,324.9 | 1,735.2 |
Total liabilities and shareholders' equity | $ 9,858.7 | $ 10,317.8 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Fixed maturities available-for-sale, at cost | $ 4,131.5 | $ 4,203.2 |
Allowance for expected credit losses | 3.3 | 2.5 |
Cost | 158.8 | |
Allowance for credit loss | 0.2 | |
Equity securities, cost | 55.3 | 70.3 |
Other investments, cost | 401.6 | 387 |
Short-term investments, cost | $ 570.2 | $ 655.4 |
Preferred shares, par value (in dollars per share) | $ 1 | $ 1 |
Preferred shares, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Preferred shares, shares issued (in shares) | 6,000 | 6,000 |
Liquidation preference (in dollars per share) | $ 25,000 | $ 25,000 |
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) | 46,339,696 | 46,192,867 |
Treasury shares (in shares) | 11,318,339 | 11,318,339 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Premiums and other revenue: | ||||
Earned premiums | $ 455 | $ 487.5 | $ 1,389.9 | $ 1,423.9 |
Net investment income | 34 | 46.1 | 100.9 | 143.2 |
Net investment and other gains (losses): | ||||
Net realized investment and other gains (losses) | (42.3) | 0.6 | (119.2) | 3.3 |
Change in fair value recognized | (1.1) | (5.1) | 2.5 | 30.7 |
Change in allowance for credit losses on fixed maturity securities | (1.3) | (0.8) | (2.9) | (1.5) |
Total net investment and other gains (losses) | (44.7) | (5.3) | (119.6) | 32.5 |
Total revenue | 444.3 | 528.3 | 1,371.2 | 1,599.6 |
Expenses: | ||||
Losses and loss adjustment expenses | 298.8 | 311.7 | 858.4 | 890.9 |
Underwriting, acquisition and insurance expenses | 161 | 177.1 | 494.9 | 530.8 |
Non-operating expenses | 11 | 8.2 | 33.9 | 20.9 |
Interest expense | 6.8 | 5.5 | 18.7 | 16.3 |
Fee and other (income) expense, net | 0.1 | (1.1) | (1.8) | (1.8) |
Foreign currency exchange (gains) losses | (9.1) | (1.3) | (16.5) | 4.4 |
Impairment of goodwill and intangibles | 28.5 | 0 | 28.5 | 0 |
Total expenses | 497.1 | 500.1 | 1,416.1 | 1,461.5 |
Income (loss) before income taxes | (52.8) | 28.2 | (44.9) | 138.1 |
Income tax provision (benefit) | (4) | 5.8 | 21.1 | 16.1 |
Net income (loss) | (48.8) | 22.4 | (66) | 122 |
Dividends on preferred shares | 2.6 | 2.6 | 7.9 | 7.9 |
Net income (loss) attributable to common shareholders | (51.4) | 19.8 | (73.9) | 114.1 |
Net Loss attributable to common shareholders, basic | $ (51.4) | $ 19.8 | $ (73.9) | $ 114.1 |
Net income (loss) attributable to common shareholders per common share: | ||||
Basic (in dollars per share) | $ (1.47) | $ 0.57 | $ (2.11) | $ 3.28 |
Diluted (in dollars per share) | (1.47) | 0.56 | (2.11) | 3.26 |
Dividend declared per common share (in dollars per share) | $ 0.31 | $ 0.31 | $ 0.93 | $ 0.93 |
Weighted average common shares: | ||||
Basic (in shares) | 35,014,182 | 34,852,274 | 34,955,787 | 34,794,078 |
Diluted (in shares) | 35,014,182 | 35,034,250 | 34,955,787 | 35,059,966 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (48.8) | $ 22.4 | $ (66) | $ 122 |
Foreign currency translation: | ||||
Foreign currency translation adjustments | (1) | (2.3) | (1.4) | 0.2 |
Reclassification adjustment for foreign currency translation included in net income | 0 | 0 | 31.8 | 0 |
Defined benefit pension plans: | ||||
Net gain arising during the year | 0 | 0 | 0 | 1.9 |
Unrealized losses on fixed maturity securities: | ||||
(Losses) gains arising during the year | (137.6) | (31.5) | (460) | (60.3) |
Reclassification adjustment for losses (gains) included in net income | 47.5 | 8.2 | 42.1 | (11) |
Other comprehensive (loss) income before tax | (91.1) | (25.6) | (387.5) | (69.2) |
Defined benefit pension plans: | ||||
Net gain arising during the year | 0 | 0 | 0 | 0.4 |
Unrealized gains (losses) on fixed maturity securities: | ||||
Losses arising during the year | (24) | (4.8) | (86.1) | (11.1) |
Reclassification adjustment for losses (gains) included in net income (loss) | 9.8 | 0.4 | 8.8 | (1.9) |
Income tax (benefit) provision related to other comprehensive income (loss) | (14.2) | (4.4) | (77.3) | (12.6) |
Other comprehensive loss, net of tax | (76.9) | (21.2) | (310.2) | (56.6) |
Comprehensive (loss) income | $ (125.7) | $ 1.2 | $ (376.2) | $ 65.4 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Preferred Shares and Additional Paid-in Capital | Common Shares | Additional Paid-In Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2020 | $ 1,857.8 | $ 144 | $ 46 | $ 1,380.2 | $ (455.1) | $ 684.1 | $ 58.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 122 | 122 | |||||
Other comprehensive loss - Change in fair value of fixed maturities, net of taxes | (58.3) | (58.3) | |||||
Other comprehensive loss, net - Other | 1.7 | 1.7 | |||||
Activity under stock incentive plans | 6 | 0.2 | 5.8 | ||||
Retirement of common shares (tax payments on equity compensation) | (2.5) | (2.5) | |||||
Employee stock purchase plan | 1.5 | 1.5 | |||||
Dividends on preferred shares | (7.9) | (7.9) | |||||
Cash dividend declared - common shares | (32.7) | (32.7) | |||||
Ending Balance at Sep. 30, 2021 | 1,887.6 | 144 | 46.2 | 1,385 | (455.1) | 765.5 | 2 |
Beginning Balance at Jun. 30, 2021 | 1,897.9 | 144 | 46.2 | 1,383.1 | (455.1) | 756.5 | 23.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 22.4 | 22.4 | |||||
Other comprehensive loss - Change in fair value of fixed maturities, net of taxes | (18.9) | (18.9) | |||||
Other comprehensive loss, net - Other | (2.3) | (2.3) | |||||
Activity under stock incentive plans | 1.5 | 1.5 | |||||
Retirement of common shares (tax payments on equity compensation) | (0.1) | (0.1) | |||||
Employee stock purchase plan | 0.5 | 0.5 | |||||
Dividends on preferred shares | (2.6) | (2.6) | |||||
Cash dividend declared - common shares | (10.8) | (10.8) | |||||
Ending Balance at Sep. 30, 2021 | 1,887.6 | 144 | 46.2 | 1,385 | (455.1) | 765.5 | 2 |
Beginning Balance at Dec. 31, 2021 | 1,735.2 | 144 | 46.2 | 1,386.4 | (455.1) | 636.4 | (22.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (66) | (66) | |||||
Other comprehensive loss - Change in fair value of fixed maturities, net of taxes | (340.6) | (340.6) | |||||
Other comprehensive loss, net - Other | 30.4 | 30.4 | |||||
Activity under stock incentive plans | 7 | 0.2 | 6.8 | ||||
Retirement of common shares (tax payments on equity compensation) | (2) | 0.1 | (1.9) | ||||
Employee stock purchase plan | 1.3 | 1.3 | |||||
Dividends on preferred shares | (7.9) | (7.9) | |||||
Cash dividend declared - common shares | (32.5) | (32.5) | |||||
Ending Balance at Sep. 30, 2022 | 1,324.9 | 144 | 46.3 | 1,392.6 | (455.1) | 530 | (332.9) |
Beginning Balance at Jun. 30, 2022 | 1,460.7 | 144 | 46.3 | 1,388.9 | (455.1) | 592.6 | (256) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (48.8) | (48.8) | |||||
Other comprehensive loss - Change in fair value of fixed maturities, net of taxes | (75.9) | (75.9) | |||||
Other comprehensive loss, net - Other | (1) | (1) | |||||
Activity under stock incentive plans | 4 | 0.1 | 3.9 | ||||
Retirement of common shares (tax payments on equity compensation) | (0.7) | 0.1 | (0.6) | ||||
Employee stock purchase plan | 0.4 | 0.4 | |||||
Dividends on preferred shares | (2.6) | (2.6) | |||||
Cash dividend declared - common shares | (11.2) | (11.2) | |||||
Ending Balance at Sep. 30, 2022 | $ 1,324.9 | $ 144 | $ 46.3 | $ 1,392.6 | $ (455.1) | $ 530 | $ (332.9) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Aug. 04, 2022 | Aug. 06, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividend declared per common share (in dollars per share) | $ 0.31 | $ 0.31 | $ 0.31 | $ 0.31 | $ 0.93 | $ 0.93 |
Other comprehensive loss, net - Other | $ (1) | $ (2.3) | $ 30.4 | $ 1.7 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows provided by (used in) operating activities: | ||
Net income (loss) | $ (66) | $ 122 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Amortization and depreciation | 15 | 28.5 |
Share-based payments expense | 6.4 | 6.4 |
Deferred income tax benefit, net | (2.6) | (14.4) |
Net investment and other (gains) losses | 119.6 | (32.5) |
Undistributed earnings from alternative investment portfolio | (21.8) | (74.8) |
Loss on disposals of long-lived assets, net | (0.6) | 1.7 |
Foreign currency exchange (gains) losses | (16.5) | 4.4 |
Impairment of goodwill and intangibles | 28.5 | 0 |
Change in: | ||
Accrued investment income | (2.2) | 0.9 |
Receivables | (274.2) | 30.2 |
Deferred acquisition costs | (17.3) | (12) |
Ceded unearned premiums | 40.4 | 2.3 |
Reserves for losses and loss adjustment expenses | 334.6 | 36.5 |
Unearned premiums | (2.9) | 77.3 |
Ceded reinsurance payable and funds held | (32.1) | (176.3) |
Income taxes | 1 | (1) |
Accrued underwriting expenses and other liabilities | (11.6) | 42.5 |
Other, net | 1.8 | (0.9) |
Cash provided by operating activities | 99.5 | 40.8 |
Cash flows provided by (used in) investing activities: | ||
Sales of fixed maturity investments | 678.3 | 786.4 |
Maturities and mandatory calls of fixed maturity investments | 323.8 | 591.1 |
Sales of equity securities | 16.3 | 36.9 |
Sales of other investments | 45.3 | 81.1 |
Purchases of fixed maturity investments | (1,042.1) | (1,511.9) |
Purchases of equity securities | (1) | (5.3) |
Purchases of other investments | (36.2) | (40.1) |
Change in foreign regulatory deposits and voluntary pools | (4) | 36.2 |
Purchase of mortgage loans | (158.8) | 0 |
Change in short-term investments | 82.2 | 32.3 |
Settlements of foreign currency exchange forward contracts | (21.5) | (9.7) |
Proceeds from business divestitures, net of cash transferred | 13.9 | 0 |
Purchases of fixed assets, net | (2.3) | 16 |
Other, net | 0 | 37.6 |
Cash provided by (used in) investing activities | (106.1) | 50.6 |
Cash flows provided by (used in) financing activities: | ||
Activity under stock incentive plans | 2.1 | 1.2 |
Payment of cash dividends to preferred shareholders | (7.9) | (7.9) |
Payment of cash dividends to common shareholders | (32.5) | (32.7) |
Cash used in financing activities | (38.3) | (39.4) |
Effect of exchange rate changes on cash | (1.8) | 1.2 |
Change in cash | (46.7) | 53.2 |
Cash, beginning of year | 146.1 | 148.8 |
Cash, end of period | $ 99.4 | $ 202 |
Business and Significant Accoun
Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Significant Accounting Policies | Business and Significant Accounting Policies Business The accompanying consolidated financial statements of Argo Group International Holdings, Ltd. and its subsidiaries (“Argo Group,” “we,” “us,” “our” or the “Company”) 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. Argo Group is an underwriter of specialty insurance products in the property and casualty market. 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 expected credit losses; estimates of written and earned premiums; reinsurance premium receivable; fair value of investments and assessment of potential impairment, including the allowance for credit losses on fixed maturity securities; valuation of goodwill and intangibles and our deferred tax asset valuation allowance. Actual results could materially differ from those estimates. Certain financial information that is normally 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 and Form 10-K/A for the year ended December 31, 2021 filed with the Securities and Exchange Commission ("SEC") (collectively, “2021 Form 10-K”). The interim financial information as of, and for, the three and nine months ended, September 30, 2022 and 2021 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. Sale of Argo Underwriting Agency Limited On September 8, 2022, Argo International Holdings Limited (the “Seller”), a wholly-owned subsidiary of the Company and Ohio Farmers Insurance Company (the “Buyer”), part of the Westfield group of insurance companies, entered into a sale and purchase agreement (the “Transaction”) under which the Seller agreed to sell, and the Buyer agreed to purchase, the entire issued share capital of Argo Underwriting Agency Limited (“AUA”). The base cash consideration for the purchase is $125.0 million, which will be adjusted to reflect the extent by which AUA’s net assets as at completion are greater or lesser than AUA net assets as at March 31, 2022. As a result of the sale, an impairment was recorded in the amount of $28.5 million, consisting of $17.3 million of indefinite lived intangible assets and $11.2 million of goodwill, representing the difference between the carrying value and implied fair value as determined by the consideration to be received. In addition, the Buyer will be obliged to replace certain funds provided by the Company to support the activities of AUA and certain of its subsidiaries at Lloyd’s of London, which would then be released to the Company. The Transaction is subject to a number of closing conditions, including regulatory approvals from Lloyd’s of London, the UK Prudential Regulation Authority and the UK Financial Conduct Authority among others. None of the closing conditions or regulatory approvals were completed or received in advance of the execution of the purchase agreement. There can be no assurance that these required closing conditions or regulatory approvals will be met or received, or will be on terms acceptable to the parties. As of September 30, 2022, numerous closing conditions, including regulatory approvals, remained open. In addition, the completion of certain closing conditions are not within the Company’s control, and as such, uncertainty exists surrounding the timing and closure of the Transaction. Should the Transaction fail to be completed as a result of regulatory or other closing conditions, it is likely that significant changes to the Company’s plan of sale would be made. Although the Company is not aware of any specific issues that would prevent the closing of the Transaction, until the Company has received regulatory approval and executed certain critical transactions which may involve third parties as part of the closing conditions, the Company cannot conclude as of September 30, 2022 that the closing of the Transaction is probable before September 30, 2023. Loss Portfolio Transfer - U.S. On August 8, 2022, the Company entered into a loss portfolio transfer agreement with a wholly owned subsidiary of Enstar Group Limited (“Enstar”) covering a majority of the Company’s U.S. casualty insurance reserves, including construction, for accident years 2011 to 2019. Enstar’s subsidiary will provide ground up cover of $746.0 million of reserves, and an additional $275.0 million of cover in excess of $821.0 million, up to a policy limit of $1,096.0 million. The Company will retain a loss corridor of $75.0 million up to $821.0 million. For the nine months ended September 30, 2022, the Company recognized $37.7 million of losses that fall within the corridor. In addition, as a result of the anticipated loss portfolio transfer, the Company determined that it is more likely than not it will be required to sell certain securities before recovery of its amortized cost. As such, the Company recognized $34.2 million of realized losses related to the impairment of assets that will be transferred at fair value to a third party at the close of the transaction. These losses were previously a component of accumulated other comprehensive income. The impairment is included as a component of Net realized investment and other gains (losses) in our Condensed Consolidated Statements of Income (Loss). The transaction with Enstar closed on November 9, 2022. See Note 16, “Subsequent Events” for additional information. Sale of ArgoGlobal SE On June 22, 2022, we completed the sale of our Malta operations, ArgoGlobal Holdings (Malta) Ltd. and its subsidiaries (“AGSE”) to RiverStone Holdings Limited (part of the RiverStone International Group) for €4.9 million (approximately $5.2 million), subject to the terms and conditions set forth in the purchase agreement. AGSE is one of the business units within our International Operations reporting segment. As a result, we realized a loss on the sale of AGSE of $21.3 million, which is included as a component of Net realized investment and other gains (losses) in our Condensed Consolidated Statements of Income (Loss). This amount includes $4.5 million of losses from the realization of historical foreign currency translation, which was previously a component of accumulated other comprehensive income. Loss Portfolio Transfer - Syndicate 1200 In April 2022, Argo Managing Agency Limited, for and on behalf of Lloyd’s Syndicate 1200, reached an agreement to enter into a loss portfolio transfer of the 2018 and 2019 years of account to Riverstone Managing Agency Limited, for and on behalf of Lloyd's Syndicate 3500, retrospectively from January 1, 2022. Sale of Argo Seguros Brasil S.A. On February 15, 2022, we completed the sale of our Brazilian operations, Argo Seguros Brasil S.A. (“Argo Seguros”), to Spice Private Equity Ltd., an investment company focused on global private equity investments, for a final purchase price of 140 million Brazilian Reais (approximately $26.9 million), subject to the terms and conditions set forth in the purchase agreement. Argo Seguros is one of the business units within our International Operations reporting segment. As a result, we realized a loss on the sale of Argo Seguros of $33.8 million in 2022, which is included as a component of Net realized investment and other gains (losses) in our Condensed Consolidated Statements of Income (Loss). This amount includes $27.3 million of losses from the realization of historical foreign currency translation, which was previously a component of accumulated other comprehensive income. We previously recognized a $6.3 million loss during 2021 as we adjusted the carrying value of Argo Seguros to its fair value. Basis of Presentation and Use of Estimates Commercial Mortgage Loans Commercial mortgages are carried at unpaid principal balances less allowance for credit losses, plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loans is accrued as earned. Non-Operating Expenses Non-operating expenses represent costs not associated with our ongoing insurance or other operations, including severance expenses, certain legal costs, merger and acquisition and other transaction-related expenses, and certain non-recurring expenses. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting PronouncementsThe Company evaluated recently issued accounting pronouncements and determined none are material to our results of operations or financial position reported herein. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Included in Total investments in our Consolidated Balance Sheets at September 30, 2022 and December 31, 2021 is $56.4 million and $89.6 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, allowance for credit losses, and fair value of fixed maturity investments were as follows: September 30, 2022 (in millions) Amortized Gross Gross Allowance for Credit Losses Fair Fixed maturities U.S. Governments $ 548.9 $ — $ 37.1 $ — $ 511.8 Foreign Governments 222.7 0.1 23.8 0.7 198.3 Obligations of states and political subdivisions 171.6 0.7 10.9 0.4 161.0 Corporate bonds 1,864.4 1.5 186.9 2.1 1,676.9 Commercial mortgage-backed securities 398.4 — 52.6 — 345.8 Residential mortgage-backed securities 415.3 0.2 52.6 — 362.9 Asset-backed securities 195.8 — 13.3 0.1 182.4 Collateralized loan obligations 314.4 — 23.2 — 291.2 Total fixed maturities $ 4,131.5 $ 2.5 $ 400.4 $ 3.3 $ 3,730.3 December 31, 2021 (in millions) Amortized Gross Gross Allowance for Credit Losses Fair Fixed maturities U.S. Governments $ 422.7 $ 5.5 $ 3.2 $ — $ 425.0 Foreign Governments 234.7 2.2 3.9 0.2 232.8 Obligations of states and political subdivisions 166.7 5.8 1.2 — 171.3 Corporate bonds 1,972.3 33.5 20.3 2.2 1,983.3 Commercial mortgage-backed securities 416.7 6.3 4.3 — 418.7 Residential mortgage-backed securities 480.7 7.5 5.7 — 482.5 Asset-backed securities 173.0 1.3 0.6 0.1 173.6 Collateralized loan obligations 336.4 1.3 1.6 — 336.1 Total fixed maturities $ 4,203.2 $ 63.4 $ 40.8 $ 2.5 $ 4,223.3 Contractual Maturity The amortized cost and fair values of fixed maturity investments as of September 30, 2022, by contractual maturity, were as follows: (in millions) Amortized Fair Due in one year or less $ 174.0 $ 170.8 Due after one year through five years 1,921.3 1,783.4 Due after five years through ten years 647.5 542.1 Due after ten years 64.7 51.6 Structured securities 1,324.0 1,182.4 Total $ 4,131.5 $ 3,730.3 The actual 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 September 30, 2022 and December 31, 2021 were as follows: September 30, 2022 (in millions) Carrying Unfunded Investment Type Hedge funds $ 55.0 $ — Private equity 263.0 116.3 Overseas deposits 78.9 — Other 4.7 — Total other investments $ 401.6 $ 116.3 December 31, 2021 (in millions) Carrying Unfunded Investment Type Hedge funds $ 58.6 $ — Private equity 248.9 64.2 Overseas deposits 74.9 — Other 4.8 — Total other investments $ 387.2 $ 64.2 The following describes each investment type: • Hedge funds: Hedge funds, carried at net asset value (“NAV”) as a practical expedient of fair value, 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. • Overseas deposits: Overseas deposits are principally invested in short-term sovereign fixed income and investment grade corporate securities. • Other: Other includes participation in investment pools. Unrealized Losses An aging of unrealized losses on our investments in fixed maturities is presented below: September 30, 2022 Less Than One Year One Year or Greater Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities U.S. Governments $ 430.0 $ 26.0 $ 81.8 $ 11.1 $ 511.8 $ 37.1 Foreign Governments 134.6 17.4 63.7 6.4 198.3 23.8 Obligations of states and political subdivisions 141.7 6.4 19.3 4.5 161.0 10.9 Corporate bonds 1,305.7 111.1 371.2 75.8 1,676.9 186.9 Commercial mortgage-backed securities 243.2 26.0 102.6 26.6 345.8 52.6 Residential mortgage-backed securities 232.3 25.1 130.6 27.5 362.9 52.6 Asset-backed securities 175.8 12.4 6.6 0.9 182.4 13.3 Collateralized loan obligations 278.2 22.3 13.0 0.9 291.2 23.2 Total fixed maturities $ 2,941.5 $ 246.7 $ 788.8 $ 153.7 $ 3,730.3 $ 400.4 December 31, 2021 Less Than One Year One Year or Greater Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities U.S. Governments $ 193.4 $ 2.6 $ 14.6 $ 0.6 $ 208.0 $ 3.2 Foreign Governments 152.4 3.3 2.6 0.6 155.0 3.9 Obligations of states and political subdivisions 46.0 0.8 0.1 0.4 46.1 1.2 Corporate bonds 854.3 18.3 41.7 2.0 896.0 20.3 Commercial mortgage-backed securities 198.8 4.1 6.5 0.2 205.3 4.3 Residential mortgage-backed securities 284.2 5.6 4.0 0.1 288.2 5.7 Asset-backed securities 62.6 0.6 — — 62.6 0.6 Collateralized loan obligations 176.1 1.6 0.5 — 176.6 1.6 Total fixed maturities $ 1,967.8 $ 36.9 $ 70.0 $ 3.9 $ 2,037.8 $ 40.8 Allowance for Credit Losses For fixed maturities with a decline in fair value below the amortized cost due to credit-related factors, an allowance is established for the difference between the estimated recoverable value and amortized cost with a corresponding charge to Net investment and other gains (losses) in the Condensed Consolidated Statements of Income (Loss). The allowance is limited to the difference between amortized cost and fair value. The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not associated with credit-related factors is recognized in the Condensed Consolidated Statements of Comprehensive Income (Loss). Accrued interest is excluded from the measurement of the allowance for credit losses. When determining if a credit loss has been incurred, we may consider the historical performance of the security, available market information and security specific considerations such as the priority payment of the security. In addition, inputs used in our analysis include, but are not limited to, credit ratings and downgrades, delinquency rates, missed scheduled interest or principal payments, purchase yields, underlying asset performance, collateral types, modeled default rates, modeled severity rates, call/prepayment rates, expected cash flows, industry concentrations, and potential or filed bankruptcies or restructurings. In cooperation with our investment managers, we evaluate for credit losses each quarter utilizing a bottom up review approach. At the security level, a determination is made as to whether a decline in fair value below the amortized cost basis is due to credit-related or noncredit-related factors. If we determine that all or a portion of a fixed maturity is uncollectible, the uncollectible amortized cost is written off with a corresponding reduction to the allowance for credit losses. If we collect cash flows that were previously written off, the recovery is recognized in realized investment gains. We also consider whether we intend to sell an available-for-sale security or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost. In these instances, a decline in fair value is recognized in Net investment and other gains (losses) in the Condensed Consolidated Statements of Income (Loss) based on the fair value of the security at the time of assessment, resulting in a new cost basis for the security. The following table presents a roll-forward of the changes in allowance for credit losses on available-for-sale fixed maturities by industry category for the three and nine months ending September 30, 2022 and 2021, respectively: (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, June 30, 2022 $ 0.5 $ 0.4 $ 1.0 $ 0.1 $ 2.0 Securities for which allowance was not previously recorded 0.1 — 1.1 — 1.2 Securities sold during the period — — — — — Reductions for credit impairments — — — — — Additional net increases (decreases) in existing allowance 0.1 — — — 0.1 Ending balance, September 30, 2022 $ 0.7 $ 0.4 $ 2.1 $ 0.1 $ 3.3 (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, June 30, 2021 $ 0.2 $ — $ 6.2 $ — $ 6.4 Securities for which allowance was not previously recorded — — 0.7 0.2 0.9 Securities sold during the period — — (0.2) — (0.2) Additional net increases (decreases) in existing allowance — — (0.1) — (0.1) Ending balance, September 30, 2021 $ 0.2 $ — $ 6.6 $ 0.2 $ 7.0 (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, January 1, 2022 $ 0.2 $ — $ 2.2 $ 0.1 $ 2.5 Securities for which allowance was not previously recorded 0.4 — 1.6 — 2.0 Securities sold during the period (0.1) — (0.6) — (0.7) Reductions for credit impairments — — (1.4) — (1.4) Additional net increases (decreases) in existing allowance 0.2 0.4 0.3 — 0.9 Ending balance, September 30, 2022 $ 0.7 $ 0.4 $ 2.1 $ 0.1 $ 3.3 (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, January 1, 2021 $ 0.2 $ 0.1 $ 6.1 $ 0.2 $ 6.6 Securities for which allowance was not previously recorded — — 2.7 0.2 2.9 Securities sold during the period — — (1.1) — (1.1) Additional net increases (decreases) in existing allowance — (0.1) (1.1) (0.2) (1.4) Ending balance, September 30, 2021 $ 0.2 $ — $ 6.6 $ 0.2 $ 7.0 Total credit impairment (gains) losses, net of allowance for credit losses, included in Net investment and other gains (losses) in the Condensed Consolidated Statements of Income (Loss) was $1.3 million and $2.9 million for the three and nine months ended September 30, 2022, respectively. Total credit impairment (gains) losses, net of allowance for credit losses, included in Net investment and other gains (losses) in the Condensed Consolidated Statements of Income was $0.8 million and $1.5 million for the three and nine months ended September 30, 2021, respectively. For commercial mortgage loans an allowance for credit losses is established at the time of origination or purchase, as necessary, and is updated each reporting period. Changes in the allowance for credit losses are recorded in Net investment and other gains (losses) . This allowance reflects the risk of loss, even when that risk is remote, that is expected over the remaining contractual life of the loan. The allowance for credit losses considers available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts of future economic conditions. Commercial Mortgage Loans Commercial mortgage loan investments are composed of participation interests in a portfolio of commercial mortgage loans. Loan collateral is diversified with regard to property type and geography. The following table presents loans by property type: September 30, 2022 (in millions) Cost Composition Loan Count Apartments $ 86.3 54.4 % 16 Hotel 25.0 15.7 % 4 Industrial 26.0 16.3 % 4 Retail 21.5 13.6 % 4 Total $ 158.8 100.0 % 28 The following table presents our loans by Debt Service Covenant Ratio (“DSCR”): September 30, 2022 (in millions) Cost Loan Count 1.00 to 1.50 $ 10.4 2 Greater than 1.5 to 2.0 59.3 10 Greater than 2.0 to 3.0 52.0 10 Greater than 3.0 to 4.0 25.8 4 Greater than 4.0 11.3 2 Total $ 158.8 28 The following table presents loans by Loan To Value (“LTV”): September 30, 2022 (in millions) Cost Loan Count Equal to or less than 50.0% $ 35.6 6 Greater than 50.0% to 55.0% 9.1 2 Greater than 55.0% to 60.0% 42.6 8 Greater than 60.0% to 70.0% 71.5 12 Total $ 158.8 28 The following table presents loans by maturity: September 30, 2022 (in millions) Cost Loan Count Greater than One Year and Less than Three $ 54.8 $ 10 Greater than Three Years and Less than Five Years 33.8 6 Greater than Five Years and Less than Seven Years 20.4 4 Greater than Seven Years and Less than Ten Years 49.8 8 Total $ 158.8 28 Investment Gains and Losses The following table presents our gross realized investment gains and losses: For the Three Months Ended For the Nine Months Ended (in millions) 2022 2021 2022 2021 Realized gains on fixed maturities and other: Fixed maturities $ 1.1 $ 3.3 $ 17.0 $ 26.3 Other investments, including short-terms 7.8 0.9 19.9 8.9 Other assets — — — 3.4 8.9 4.2 36.9 38.6 Realized losses on fixed maturities and other: Fixed maturities (3.5) (0.4) (24.9) (5.0) Other investments, including short-terms (12.1) (3.3) (40.1) (16.6) Other assets — (1.4) — (14.0) (15.6) (5.1) (65.0) (35.6) Other net losses recognized on fixed maturities and other: Credit gains (losses) on fixed maturities (1.5) (0.7) (4.9) (1.5) Impairment related to change in intent (1) (34.2) — (34.2) — Other (2) (1.4) — (55.1) — (37.1) (0.7) (94.2) (1.5) Equity securities: Net realized gains (losses) on equity securities 0.2 1.4 0.2 0.3 Change in unrealized gains (losses) on equity securities held at the end of the period (1.1) (5.1) 2.5 30.7 Net gains (losses) on equity securities (0.9) (3.7) 2.7 31.0 Net investment and other gains (losses) before income taxes (44.7) (5.3) (119.6) 32.5 Income tax (benefit) provision (7.0) — (8.8) — Net investment and other gains (losses), net of income taxes $ (37.7) $ (5.3) $ (110.8) $ 32.5 (1) Refer to the Loss Portfolio Transfer - U.S. in Note 1, “Business and Significant Accounting Policies” for additional information. (2) Refer to the sale of AGSE and Argo Seguros in Note 1, “Business and Significant Accounting Policies” for additional information. The cost of securities sold is based on the specific identification method. Changes in unrealized gains (losses) related to investments are summarized as follows: For the Three Months Ended For the Nine Months Ended (in millions) 2022 2021 2022 2021 Change in unrealized gains (losses) Fixed maturities $ (88.9) $ (23.0) $ (417.6) $ (70.7) Other and short-term investments (1.2) (0.3) (0.3) (0.6) Net unrealized investment gains (losses) before income taxes (90.1) (23.3) (417.9) (71.3) Income tax provision (benefit) (14.2) (4.4) (77.3) (13.0) Net unrealized investment gains (losses), net of income taxes $ (75.9) $ (18.9) $ (340.6) $ (58.3) Foreign Currency Exchange Forward Contracts We enter into foreign currency exchange forward contracts to manage operational currency exposure from our non-USD insurance operations, and gain exposure to a total return strategy which invests in multiple currencies. The currency forward contracts are carried at fair value in our Condensed Consolidated Balance Sheets in Other liabilities and Other assets at September 30, 2022 and December 31, 2021, respectively. The net realized gains and (losses) are included in Net realized investment and other gains (losses) in our Condensed Consolidated Statements of Income (Loss). The fair value of our foreign currency exchange forward contracts as of September 30, 2022 and December 31, 2021 was as follows: September 30, 2022 December 31, 2021 (in millions) Notional Amount Fair Value Notional Amount Fair Value Operational currency exposure $ 288.8 $ (3.4) $ 276.3 $ (0.3) Asset manager investment exposure 25.0 3.8 35.5 (0.3) Total $ 313.8 $ 0.4 $ 311.8 $ (0.6) The following table represents our gross realized investment gains and losses on our foreign currency exchange forward contracts: For the Three Months Ended For the Nine Months Ended (in millions) 2022 2021 2022 2021 Realized gains Operational currency exposure $ 4.7 $ — $ 12.5 $ 7.1 Asset manager investment exposure 3.1 1.0 7.3 2.8 Total return strategy — 6.9 — 13.0 Gross realized investment gains 7.8 7.9 19.8 22.9 Realized losses Operational currency exposure (11.2) (5.2) (36.7) (17.8) Asset manager investment exposure — — (1.0) (0.8) Total return strategy — (6.9) — (12.0) Gross realized investment losses (11.2) (12.1) (37.7) (30.6) Net realized investment (losses) gains on foreign currency exchange forward contracts $ (3.4) $ (4.2) $ (17.9) $ (7.7) 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: (in millions) September 30, 2022 December 31, 2021 Securities on deposit for regulatory and other purposes $ 158.5 $ 195.6 Securities pledged as collateral for letters of credit and other 178.5 193.9 Securities on deposit supporting Lloyd’s business (1) 257.0 296.8 Total restricted investments $ 594.0 $ 686.3 (1) Argo Group is required to maintain Funds at Lloyd’s (“FAL”) to support its business for Syndicate 1200 and Syndicate 1910. At September 30, 2022 the amount of securities pledged for FAL was $257.0 million, of which $134.0 million was provided by Argo Re, Ltd. Fair Value Measurements Fair value is the price that would be received upon the sale of 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. • 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. To validate the fair value of investments in the Company’s financial statements, we receive prices from multiple sources including third-party pricing services and our outside investment managers. Through a comparative analysis, the Company validates the reasonableness of its valuations. 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 September 30, 2022 and December 31, 2021. 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 or Level 3 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 brokers and independent valuation services, both based upon estimates, assumptions and other unobservable inputs. 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. Based on an analysis of the inputs, our financial assets and liabilities measured at fair value on a recurring basis have been categorized as follows: Fair Value Measurements at Reporting Date Using (in millions) September 30, Level 1 (1) Level 2 (2) Level 3 (3) Fixed maturities U.S. Governments $ 511.8 $ 507.5 $ 4.3 $ — Foreign Governments 198.3 — 198.3 — Obligations of states and political subdivisions 161.0 — 161.0 — Corporate bonds 1,676.9 — 1,654.3 22.6 Commercial mortgage-backed securities 345.8 — 345.8 — Residential mortgage-backed securities 362.9 — 362.9 — Asset-backed securities 182.4 — 163.2 19.2 Collateralized loan obligations 291.2 — 291.2 — Total fixed maturities 3,730.3 507.5 3,181.0 41.8 Equity securities 43.9 26.9 — 17.0 Other investments 79.2 — 79.2 — Short-term investments 570.7 570.3 0.4 — Derivatives 0.4 — 0.4 — Total assets $ 4,424.5 $ 1,104.7 $ 3,261.0 $ 58.8 (1) Quoted prices in active markets for identical assets (2) Significant other observable inputs (3) Significant unobservable inputs Fair Value Measurements at Reporting Date Using (in millions) December 31, Level 1 (1) Level 2 (2) Level 3 (3) Fixed maturities U.S. Governments $ 425.0 $ 417.4 $ 7.6 $ — Foreign Governments 232.8 — 232.8 — Obligations of states and political subdivisions 171.3 — 171.3 — Corporate bonds 1,983.3 — 1,980.5 2.8 Commercial mortgage-backed securities 418.7 — 418.7 — Residential mortgage-backed securities 482.5 — 482.5 — Asset-backed securities 173.6 — 173.6 — Collateralized loan obligations 336.1 — 336.1 — Total fixed maturities 4,223.3 417.4 3,803.1 2.8 Equity securities 56.3 41.6 — 14.7 Other investments 75.4 — 75.4 — Short-term investments 655.8 653.9 1.9 — Total assets $ 5,010.8 $ 1,112.9 $ 3,880.4 $ 17.5 Derivatives $ 0.6 $ — $ 0.6 $ — Total liabilities $ 0.6 $ — $ 0.6 $ — (1) Quoted prices in active markets for identical assets (2) Significant other observable inputs (3) Significant unobservable inputs The fair value measurements in the tables above do not equal Total investments on our Consolidated Balance Sheets as they primarily exclude other investments that are accounted for under the equity-method of accounting as well as hedge funds which are carried at NAV as a practical expedient. A reconciliation of the beginning and ending balances for the investments categorized as Level 3 are as follows: Fair Value Measurements Using Unobservable Inputs (Level 3) (in millions) Credit Financial Equity Total Beginning balance, January 1, 2022 $ 2.8 $ 14.7 $ 17.5 Transfers into Level 3 42.6 0.6 43.2 Transfers out of Level 3 — — — Total gains or losses (realized/unrealized): Included in net income (0.3) 0.6 0.3 Included in other comprehensive income (2.9) — (2.9) Purchases, issuances, sales, and settlements: Purchases 1.4 1.1 2.5 Issuances — — — Sales (1.8) — (1.8) Settlements — — — Ending balance, September 30, 2022 $ 41.8 $ 17.0 $ 58.8 Amount of total gains or losses for the year included in net income attributable to the change in unrealized gains or losses relating to assets still held at September 30, 2022 $ — $ (3.6) $ (3.6) (in millions) Credit Financial Equity Total Beginning balance, January 1, 2021 $ 7.0 $ 17.5 $ 24.5 Transfers into Level 3 — 2.4 2.4 Transfers out of Level 3 — — — Total gains or losses (realized/unrealized): Included in net income — 4.2 4.2 Included in other comprehensive loss (0.8) — (0.8) Purchases, issuances, sales, and settlements: Purchases 0.1 1.2 1.3 Issuances — — — Sales (3.5) (10.6) (14.1) Settlements — — — Ending balance, December 31, 2021 $ 2.8 $ 14.7 $ 17.5 Amount of total gains or losses for the year included in net income attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2021 $ — $ — $ — At September 30, 2022 and December 31, 2021, 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. The Company holds investments in commercial mortgage loans reported at cost, less an allowance for expected credit losses, on the Balance Sheet. As of September 30, 2022, the cost and estimated fair value of the investments in commercial mortgage loans were: September 30, 2022 (in millions) Cost Fair Value Commercial Mortgage Loans $ 158.8 $ 152.7 |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2022 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses Premiums receivable The following table represents the balances of premiums receivable, net of allowance for expected credit losses, at September 30, 2022 and January 1, 2022, and the changes in the allowance for expected credit losses for the nine months ended September 30, 2022. (in millions) Premiums Receivable, Net of Allowance for Estimated Uncollectible Premiums Allowance for Estimated Uncollectible Premiums Balance, January 1, 2022 $ 648.6 $ 5.7 Current period change for estimated uncollectible premiums 0.2 Write-offs of uncollectible premiums receivable (1) (1.8) Balance, September 30, 2022 $ 656.5 $ 4.1 (1) Includes allowance transferred as a result of divestitures in the amount of $1.5 million. Reinsurance Recoverables The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at September 30, 2022 and January 1, 2022, and changes in the allowance for estimated uncollectible reinsurance for the nine months ended September 30, 2022. (in millions) Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance Allowance for Estimated Uncollectible Reinsurance Balance, January 1, 2022 $ 2,966.4 $ 3.8 Current period change for estimated uncollectible reinsurance 0.7 Write-offs of uncollectible reinsurance recoverables — Balance, September 30, 2022 $ 3,015.8 $ 4.5 We primarily utilize A.M. Best credit ratings when determining the allowance, and adjust as needed based on our historical experience with the reinsurers. A portion of our reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements. |
Reserves for Losses and Loss Ad
Reserves for Losses and Loss Adjustment Expenses | 9 Months Ended |
Sep. 30, 2022 | |
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 Nine Months Ended (in millions) 2022 2021 Net reserves beginning of the year $ 3,123.2 $ 2,906.1 Add: Losses and LAE incurred during current calendar year, net of reinsurance: Current accident year 826.8 884.9 Prior accident years 31.6 6.0 Losses and LAE incurred during calendar year, net of reinsurance 858.4 890.9 Deduct: Losses and LAE payments made during current calendar year, net of reinsurance: Current accident year 112.0 100.5 Prior accident years 623.2 552.8 Losses and LAE payments made during current calendar year, net of reinsurance: 735.2 653.3 Divestitures (1) (35.2) — Net reserves ceded: Loss portfolio transfer (for years of account 2019 and 2018) (2) (175.5) — Reinsurance to close transaction (for years of account 2017 and prior) (3) — 219.7 Change in participation interest (4) 32.2 12.5 Foreign exchange adjustments (10.6) (7.3) Net reserves - end of period 3,057.3 2,929.2 Add: Reinsurance recoverables on unpaid losses and LAE, end of period 2,674.1 2,510.3 Gross reserves - end of period $ 5,731.4 $ 5,439.5 (1) Refer to the sale of Argo Seguros and AGSE in Note 1, “Business and Significant Accounting Policies” for additional information. (2) Loss portfolio transfer on Syndicate 1200's reserves for the 2018 and 2019 years of account. Refer to Note 1, “Business and Significant Accounting Policies” for additional information. (3) Amount represents reserves ceded under the reinsurance to close transaction with RiverStone for Lloyd’s years of account 2017 and prior, effective January 1, 2021. (4) 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. Underwriting results for the nine months ended September 30, 2022 included net losses and loss adjustment expenses for Hurricane Ian of $23.4 million. The impact from the (favorable) unfavorable development of prior accident years’ loss and LAE reserves on each reporting segment is presented below: For the Nine Months Ended (in millions) 2022 2021 U.S. Operations $ 27.9 $ (0.7) International Operations 0.8 0.1 Run-off Lines 2.9 6.6 Total (favorable) unfavorable prior-year development $ 31.6 $ 6.0 The following describes the primary factors behind each segment’s prior accident year reserve development for the nine months ended September 30, 2022 and 2021: Nine months ended September 30, 2022: • U.S. Operations: Unfavorable development primarily related to liability and property lines, including the impact of large losses, partially offset by favorable development in specialty lines. The unfavorable prior year development was largely driven by businesses we have exited, and relates to accident years 2019 and prior partially offset by favorable prior year development on accident years 2020 and 2021. • International Operations : Unfavorable development primarily related to unfavorable movements in professional lines in Argo Insurance Bermuda, partially offset by favorable development in Syndicate 1200 property and liability lines. • Run-off Lines: Unfavorable loss reserve development on prior accident years in other run-off lines. Nine months ended September 30, 2021: • U.S. Operations : Favorable development primarily in specialty lines, partially offset by unfavorable development in liability and professional lines. • International Operations : Unfavorable development primarily related to a one-time accounting adjustment and large claim movements in Argo Insurance Bermuda, partially offset by favorable development in property lines, including losses associated with prior year catastrophe losses. • Run-off Lines: Unfavorable loss reserve development on prior accident years in risk management workers compensation, other run-off lines and an individual environmental loss. Our reserves represent the best estimate of our ultimate liabilities, based on currently known facts, current law, current technology and reasonable assumptions 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 | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 and December 31, 2021, the fair value of our debt instruments is determined using both Level 1 and Level 2 inputs, as previously defined in Note 3, “Investments.” We receive fair value prices from third-party pricing services for our financial instruments as well as for similar financial instruments. These prices are determined using observable market information such as publicly traded quoted prices, and trading prices for similar financial instruments actively being traded in the current market. We have reviewed the processes used by the third-party providers for pricing the instruments 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 September 30, 2022 and December 31, 2021. A description of the valuation techniques we use to measure these liabilities at fair value is as follows: Senior Unsecured Fixed Rate Notes Level 1: • Our senior unsecured fixed rate notes are valued 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. Junior Subordinated Debentures and Floating Rate Loan Stock Level 2: • Our trust preferred debentures, subordinated debentures and floating rate loan stock are typically valued using Level 2 inputs. For these securities, we obtain fair value measurements from a third-party pricing service using quoted prices for similar securities being traded in active markets at the reporting date, as our specific debt instruments are less frequently traded. A summary of our financial instruments whose carrying value did not equal fair value is shown below: September 30, 2022 December 31, 2021 (in millions) Carrying Fair Carrying Fair Junior subordinated debentures: Trust preferred debentures $ 172.7 $ 168.2 $ 172.7 $ 172.9 Subordinated debentures 85.8 89.4 85.5 91.9 Total junior subordinated debentures 258.5 257.6 258.2 264.8 Senior unsecured fixed rate notes 140.5 131.6 140.3 148.4 Floating rate loan stock 52.5 51.1 57.0 57.1 $ 451.5 $ 440.3 $ 455.5 $ 470.3 Based on an analysis of the inputs, our financial instruments measured at fair value for disclosure purposes have been categorized as follows: Fair Value Measurements at Reporting Date Using (in millions) September 30, 2022 Level 1 (1) Level 2 (2) Level 3 (3) Junior subordinated debentures: Trust preferred debentures $ 168.2 $ — $ 168.2 $ — Subordinated debentures 89.4 — 89.4 — Total junior subordinated debentures 257.6 — 257.6 — Senior unsecured fixed rate notes 131.6 131.6 — — Floating rate loan stock 51.1 — 51.1 — $ 440.3 $ 131.6 $ 308.7 $ — (1) Quoted prices in active markets for identical assets (2) Significant other observable inputs (3) Significant unobservable inputs Fair Value Measurements at Reporting Date Using (in millions) December 31, 2021 Level 1 (1) Level 2 (2) Level 3 (3) Junior subordinated debentures: Trust preferred debentures $ 172.9 $ — $ 172.9 $ — Subordinated debentures 91.9 — 91.9 — Total junior subordinated debentures 264.8 — 264.8 — Senior unsecured fixed rate notes 148.4 148.4 — — Floating rate loan stock 57.1 — 57.1 — $ 470.3 $ 148.4 $ 321.9 $ — (1) Quoted prices in active markets for identical assets (2) Significant other observable inputs (3) Significant unobservable inputs |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Dividends On August 4, 2022, our Board of Directors declared a quarterly cash dividend in the amount of $0.31 on each common share outstanding. On September 15, 2022, we paid $11.2 million to our shareholders of record on August 31, 2022. On August 4, 2022, our Board of Directors declared a quarterly cash dividend in the amount of $437.50 per share on our 7.00% Resettable Fixed Rate Preference Shares, Series A, par value of $1.00 per share, with a liquidation preference of $25,000 per share (the “Series A Preference Shares”). Holders of depositary shares, each representing a 1/1,000th interest in a Series A Preference Share (the “Depositary Shares”), received $0.43750 per Depositary Share. On September 15, 2022, we paid $2.6 million to our shareholders of record of Series A Preference Shares on August 31, 2022. On August 6, 2021, our Board of Directors declared a quarterly cash dividend in the amount of $0.31 on each common share outstanding. On September 15, 2021, we paid $10.8 million to our shareholders of record on August 31, 2021. On August 6, 2021, our Board of Directors declared a quarterly cash dividend in the amount of $437.50 per share on our 7.00% Resettable Fixed Rate Preference Shares, Series A, par value of $1.00 per share, with a liquidation preference of $25,000 per share (the “Series A Preference Shares”). Holders of depositary shares, each representing a 1/1,000th interest in a Series A Preference Share (the “Depositary Shares”), received $0.43750 per Depositary Share. On September 15, 2021, we paid $2.6 million to our shareholders of record of Series A Preference Shares on August 31, 2021. Stock Repurchases 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 September 30, 2022, 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 nine months ended September 30, 2022 and September 30, 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) A summary of changes in accumulated other comprehensive (loss) income, net of taxes (where applicable) by component for the nine months ended September 30, 2022 and 2021 is presented below: (in millions) Foreign Currency Translation Adjustments Unrealized Defined Benefit Pension Plans Total Balance, January 1, 2022 $ (35.3) $ 19.7 $ (7.1) $ (22.7) Other comprehensive loss before reclassifications (1.4) (373.9) — (375.3) Amounts reclassified from accumulated other comprehensive loss 31.8 33.3 — 65.1 Net current-period other comprehensive income (loss) 30.4 (340.6) — (310.2) Balance, September 30, 2022 $ (4.9) $ (320.9) $ (7.1) $ (332.9) (in millions) Foreign Currency Translation Adjustments Unrealized Defined Benefit Pension Plans Total Balance, January 1, 2021 $ (37.9) $ 105.1 $ (8.6) $ 58.6 Other comprehensive income (loss) before reclassifications 0.2 (49.2) 1.5 (47.5) Amounts reclassified from accumulated other comprehensive loss — (9.1) — (9.1) Net current-period other comprehensive income (loss) 0.2 (58.3) 1.5 (56.6) Balance, September 30, 2021 $ (37.7) $ 46.8 $ (7.1) $ 2.0 The amounts reclassified from accumulated other comprehensive income (loss) shown in the above table have been included in the following captions in our Condensed Consolidated Statements of Income (Loss): For the Three Months Ended For the Nine Months Ended (in millions) 2022 2021 2022 2021 Unrealized gains and losses on securities: Net realized investment gains (losses) (1) $ 47.5 $ 8.2 $ 42.1 $ (11.0) Provision for income taxes (9.8) (0.4) (8.8) 1.9 Foreign currency translation adjustments: Net realized foreign currency translation losses (2) — — 31.8 — Total, net of taxes $ 37.7 $ 7.8 $ 65.1 $ (9.1) (1) Net realized investment gains (losses) includes losses realized as a result of the Loss Portfolio Transfer - U.S . Refer to the sale of Argo Underwriting Agency Limited in Note 1, “Business and Significant Accounting Policies” for additional information. (2) Foreign currency translation losses were realized as a result of the sale of Argo Seguros and AGSE. Refer to the sale of Argo Seguros and AGSE in Note 1, “Business and Significant Accounting Policies” for additional information. Income tax effects are released from accumulated other comprehensive income (loss) for unrealized gains or losses when the gains or losses are realized, and are taxed at the statutory rate based on jurisdiction of the underlying transaction. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share The following table presents the calculation of net income (loss) per common share on a basic and diluted basis: For the Three Months Ended For the Nine Months Ended (in millions, except number of shares and per share amounts) 2022 2021 2022 2021 Net income (loss) $ (48.8) $ 22.4 $ (66.0) $ 122.0 Less: Preferred share dividends 2.6 2.6 7.9 7.9 Net income (loss) attributable to common shareholders (51.4) 19.8 (73.9) 114.1 Weighted average common shares outstanding - basic 35,014,182 34,852,274 34,955,787 34,794,078 Effect of dilutive securities: Equity compensation awards — 181,976 — 265,888 Weighted average common shares outstanding - diluted 35,014,182 35,034,250 34,955,787 35,059,966 Net income (loss) per common share: Basic $ (1.47) $ 0.57 $ (2.11) $ 3.28 Diluted $ (1.47) $ 0.56 $ (2.11) $ 3.26 Excluded from the weighted average common shares outstanding calculation at September 30, 2022 and 2021 are 11,318,339 shares, which are held as treasury shares. The shares are excluded as of their repurchase date. Excluded from the computation of diluted net loss per common shares were 9,049 and 96,973 potentially dilutive shares for the three and nine months ended September 30, 2022, respectively. The potentially dilutive shares were excluded due to the net loss incurred for the periods presented. For the three and nine months ended September 30, 2021, 26,422 and 49,796, respectively, weighted average shares were excluded from the computation of diluted net income per common shares as they were antidilutive. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2022 | |
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 Nine Months Ended (in millions) 2022 2021 Senior unsecured fixed rate notes $ 7.0 $ 7.0 Junior subordinated debentures 9.0 7.5 Other indebtedness 1.0 1.5 Total interest paid $ 17.0 $ 16.0 Income taxes paid $ 26.2 $ 30.7 Income taxes recovered (0.5) (1.2) Income taxes paid, net $ 25.7 $ 29.5 |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation Argo Group’s 2019 Omnibus Incentive Plan In May 2019, our shareholders approved the 2019 Omnibus Incentive Plan (the “2019 Plan”), which provides equity-based and cash-based incentives to key employees and non-employee directors. The intent of the 2019 Plan is to encourage and provide for the acquisition of an ownership interest in Argo Group, enabling us to attract and retain qualified and competent persons to serve as members of our management team and Board of Directors. The 2019 Plan authorizes 1,885,000 common shares to be granted as equity-based awards. No further grants will be made under any prior plan; however, any awards under a prior plan that are outstanding as of the effective date shall remain subject to the terms and conditions of, and be governed by, such prior plan. Awards granted under the 2019 Plan may be in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance awards, other stock-based awards or other cash-based awards. Awards may be granted either alone, in addition to or in tandem with other awards authorized under the 2019 Plan. Awards that are settled in stock will count as one share for the purposes of reducing the share reserve under the 2019 Plan. Shares issued under this plan may be shares that are authorized and unissued or shares that we have reacquired, including shares purchased on the open market. Stock options and stock appreciation rights are required to have an exercise price that is not less than the fair market value on the date of grant. The term of these awards is not to exceed ten years. Restricted Shares A summary of non-vested restricted share activity as of September 30, 2022 and changes during the nine months then ended is as follows: Shares Weighted-Average Outstanding at January 1, 2022 278,430 $ 49.57 Granted 357,408 39.47 Reclassed from performance shares 14,373 32.61 Vested and issued (153,391) 47.02 Expired or forfeited (118,339) 43.48 Outstanding at September 30, 2022 378,481 $ 42.33 The restricted shares generally vest over one Underwriting, acquisition and insurance expenses in the accompanying Condensed Consolidated Statements of Income (Loss). As of September 30, 2022, there was $13.2 million of total unrecognized compensation cost related to restricted share compensation arrangements granted by Argo Group. Performance Shares We have issued to certain key employees non-vested restricted stock awards whose vesting is subject to the achievement of certain performance measures. The non-vested performance share awards vest over three A summary of non-vested performance share activity as of September 30, 2022 and changes during the nine months then ended is as follows: Shares Weighted-Average Outstanding at January 1, 2022 200,564 $ 47.52 Granted 124,464 41.00 Reclassed to restricted shares (14,373) 32.61 Vested and issued (3,275) 61.05 Expired or forfeited (176,128) 44.75 Outstanding at September 30, 2022 131,252 $ 46.34 Expense recognized under this plan for the performance shares was $0.5 million for the three months ended September 30, 2022, compared to $0.2 million for the three months ended September 30, 2021. For the nine months ended September 30, 2022, we recouped expense of $0.1 million, compared to expense of $1.8 million for the nine months ended September 30, 2021. The recoupment of expenses recognized for the nine months ended September 30, 2022 was primarily attributable to the forfeiture of awards due to the departure of our former president and chief executive officer. As of September 30, 2022, there was $3.5 million of total unrecognized compensation cost related to performance share compensation arrangements granted by Argo Group. Stock-settled Share Appreciation Rights |
Underwriting, Acquisition and I
Underwriting, Acquisition and Insurance Expenses | 9 Months Ended |
Sep. 30, 2022 | |
Underwriting, Acquisition and Insurance Expenses [Abstract] | |
Underwriting, Acquisition and Insurance Expenses | Underwriting, Acquisition and Insurance Expenses Underwriting, acquisition and insurance expenses were as follows: For the Three Months Ended For the Nine Months Ended (in millions) 2022 2021 2022 2021 Commissions $ 72.7 $ 88.0 $ 211.9 $ 236.2 Other underwriting and insurance expenses 97.5 105.1 297.9 315.7 Total underwriting, acquisition and insurance expenses before deferral 170.2 193.1 509.8 551.9 Net deferral of policy acquisition costs (9.2) (16.0) (14.9) (21.1) Total underwriting, acquisition and insurance expenses $ 161.0 $ 177.1 $ 494.9 $ 530.8 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesWe 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 Amendment 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. Argo Group International Holdings, Ltd. does not consider itself to be engaged in a trade or business in the U.S. or the U.K. and, accordingly, does not expect to be subject to direct U.S. or U.K. income taxation. We have subsidiaries based in the U.K. that are subject to the tax laws of that country. Under current law, these subsidiaries are taxed at the applicable corporate tax rates. Certain of the U.K. subsidiaries are deemed to be engaged in business in the U.S., and therefore, are subject to U.S. corporate tax in respect of a proportion of their U.S. underwriting business only. Relief is available against the U.K. tax liabilities in respect of overseas taxes paid that arise from the underwriting business. Our U.K. subsidiaries file separate U.K. income tax returns. We have subsidiaries based in the U.S. that are subject to U.S. tax laws. Under current law, these subsidiaries are taxed at the applicable corporate tax rates. Our U.S. subsidiaries file a consolidated U.S. federal income tax return. We also have operations in Ireland, Italy, and Switzerland, which also are subject to income taxes imposed by the jurisdiction in which they operate. During 2022, our operations in Brazil and Malta were divested. We also have operations in Barbados and the United Arab Emirates, which are not subject to income tax under the laws of those countries. On June 10, 2021, U.K. tax legislation referred to as Finance Act 2021 received Royal Assent and was enacted. The effects of changes in tax laws and tax rates are recognized in the period of enactment. Accordingly, we recorded the impacts of Finance Act 2021 in our June 30, 2021 consolidated financial statements which primarily includes the remeasurement of our deferred tax assets and liabilities for the increased U.K. federal tax rate from 19% to 25% beginning on April 1, 2023. On August 16, 2022, U.S. tax legislation referred to as the Inflation Reduction Act of 2022 was enacted. The Company does not anticipate an impact to our financial statements in regards to the recent legislative change. 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 and nine months ended September 30, 2022 and 2021, pre-tax income (loss) attributable to our operations and the corresponding operations’ effective tax rates were as follows: For the Three Months Ended September 30, 2022 2021 (in millions) Pre-Tax Effective Pre-Tax Effective Bermuda $ (11.3) — % $ 7.2 — % United States (3.2) 46.3 % 21.4 26.8 % United Kingdom (37.6) 6.8 % (6.1) (1.0) % Brazil — — % 5.9 — % United Arab Emirates 0.5 — % 0.9 — % Ireland (1.3) — % — (1) — % Italy 0.1 (1.7) % 0.2 — % Malta — — % (1.3) — % Switzerland — — % — (1) — % Pre-tax income $ (52.8) 7.6 % $ 28.2 20.6 % (1) Pre-tax income (loss) for the respective year was less than $0.1 million. For the Nine Months Ended September 30, 2022 2021 (in millions) Pre-Tax Effective Pre-Tax Effective Bermuda $ (60.3) — % $ 14.5 — % United States 81.6 20.7 % 126.7 20.7 % United Kingdom (23.9) (16.2) % (14.9) 68.4 % Brazil (0.1) (422.4) % 9.8 — % United Arab Emirates 1.3 — % 1.2 — % Ireland (39.3) — % (0.1) — % Italy (0.1) (46.4) % 1.4 — % Malta (4.1) — % (0.4) — % Switzerland — — % (0.1) — % Pre-tax income $ (44.9) (47.0) % $ 138.1 11.7 % 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 inherent 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 For the Nine Months Ended (in millions) 2022 2021 2022 2021 Income tax provision at expected rate $ (7.8) $ 5.6 $ 11.1 $ 28.4 Tax effect of: Nontaxable investment income (0.1) (0.1) (0.3) (0.4) Foreign exchange adjustments — 0.2 0.8 (0.3) Goodwill and intangible assets 5.5 — — 5.5 — Withholding taxes — — — 0.1 Sale of Brazil and Malta Operations 0.1 — 6.6 — Change in uncertain tax position liability — (0.4) 0.6 (2.3) Change in valuation allowance (1.3) 0.8 (6.7) (1.1) Impact of change in tax rate related to Finance Act 2021 (0.4) — 0.9 (7.4) Prior period adjustment (0.5) — 0.3 — Other 0.5 (0.3) 2.3 (0.9) Income tax provision $ (4.0) $ 5.8 $ 21.1 $ 16.1 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 U.S. property and casualty insurers two years for net operating losses and for all our U.S. 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. For the three and nine months ended September 30, 2022, the net change in valuation allowance for deferred tax assets was a decrease of $1.3 million and $6.7 million, respectively, 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 or disposals. 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. For the three and nine months ended September 30, 2022, the Company had a net increase of uncertain tax positions in the amount of $0.0 million and $0.6 million related to state income tax liability. Separately, a net increase of interest in the amount of $0.1 million and $0.2 million has been recorded in the line item Interest expense in our Consolidated Statements of Income (Loss) for the three and nine months ended September 30, 2022. No change to penalties were recorded for the three and nine months ended September 30, 2022. Our U.S. subsidiaries are no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2018. Our U.K. subsidiaries are no longer subject to U.K. income tax examinations by Her Majesty’s Revenue and Customs for years before 2020. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Argo Group’s subsidiaries are parties to legal actions incidental to their business. As of September 30, 2022, management believed that the resolution of these matters would not materially affect our financial condition or results of operations. See Note 16, “Subsequent Events” for information regarding the securities class action lawsuit filed against the Company on October 20, 2022. We have contractual commitments to invest up to $116.3 million related to our limited partnership investments at September 30, 2022, as further disclosed in Note 3, “Investments.” These commitments will be funded as required by the partnership agreements which can be called to be fulfilled at any time, not to exceed twelve years. On November 9, 2022, the U.S. Loss Portfolio Transaction with Enstar covering a majority of the Company’s U.S. casualty insurance reserves, including construction, for accident years 2011 to 2019 closed. See Note 16, “Subsequent Events” for information on contractual commitments as a result of this transaction. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We are primarily engaged in underwriting property and casualty insurance. We have two ongoing reporting segments: U.S. Operations and International Operations. Additionally, we have Run-off Lines 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. 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 (loss) before income taxes for each segment were as follows: For the Three Months Ended For the Nine Months Ended (in millions) 2022 2021 2022 2021 Revenue: Earned premiums U.S. Operations $ 329.3 $ 323.5 $ 998.5 $ 952.4 International Operations 125.2 163.9 390.7 471.1 Run-off Lines 0.5 0.1 0.7 0.4 Total earned premiums 455.0 487.5 1,389.9 1,423.9 Net investment income U.S. Operations 23.1 29.2 68.7 91.7 International Operations 10.3 12.3 30.4 38.2 Run-off Lines 0.6 0.9 1.8 2.8 Corporate and Other — 3.7 — 10.5 Total net investment income 34.0 46.1 100.9 143.2 Net investment and other gains (losses) (44.7) (5.3) (119.6) 32.5 Total revenue $ 444.3 $ 528.3 $ 1,371.2 $ 1,599.6 For the Three Months Ended For the Nine Months Ended (in millions) 2022 2021 2022 2021 Income (loss) before income taxes U.S. Operations $ 26.6 $ 39.9 $ 113.5 $ 130.1 International Operations 3.3 6.9 28.6 14.6 Run-off Lines 0.7 (3.6) (1.9) (4.5) Total segment income before income taxes 30.6 43.2 140.2 140.2 Corporate and Other (19.3) (11.0) (53.5) (30.2) Net investment and other gains (losses) (44.7) (5.3) (119.6) 32.5 Foreign currency exchange gains (losses) 9.1 1.3 16.5 (4.4) Impairment of goodwill (28.5) — (28.5) — Total income (loss) before income taxes $ (52.8) $ 28.2 $ (44.9) $ 138.1 The table below presents earned premiums by geographic location for the three and nine months ended September 30, 2022 and 2021. 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 For the Nine Months Ended (in millions) 2022 2021 2022 2021 United States $ 329.8 $ 322.7 $ 999.2 $ 949.7 United Kingdom 113.8 129.1 349.8 344.9 Bermuda 11.4 10.3 28.8 46.1 Malta — 7.7 3.7 32.7 All other jurisdictions — 17.7 8.4 50.5 Total earned premiums $ 455.0 $ 487.5 $ 1,389.9 $ 1,423.9 The following table represents identifiable assets: (in millions) September 30, 2022 December 31, 2021 U.S. Operations $ 5,597.1 $ 5,800.1 International Operations 3,864.4 3,932.3 Run-off Lines 266.1 314.7 Corporate and Other 131.1 270.7 Total $ 9,858.7 $ 10,317.8 Included in total assets at September 30, 2022 and December 31, 2021 are $302.5 million and $554.2 million, respectively, in assets associated with trade capital providers. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Loss Portfolio Transfer - U.S. On November 9, 2022, the U.S. Loss Portfolio Transaction with Enstar covering a majority of the Company’s U.S. casualty insurance reserves, including construction, for accident years 2011 to 2019 closed. The estimated subject reserves transferred to Enstar on the closing date were $509.0 million, which represents the $746.0 million in loss reserves as of January 1, 2022, less estimated claims paid through October 31, 2022. On the closing date, the Company also transferred approximately $630.0 million of cash and investments to Enstar for which a portion will be deposited into a Trust established to secure Enstar’s claim payment obligation to the Company. The financial statement impact of this transaction, which will be recorded in the fourth quarter of 2022, is a $509.0 million increase in Reinsurance recoverables , a reduction of $630.0 million in cash and investments, and an after-tax charge of approximately $100.0 million. Federal Securities Class Action On October 20, 2022, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against the Company and certain of its current and former officers, alleging securities fraud violations under sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Plaintiff alleges that from February 13, 2018 through August 9, 2022, Defendants made false and misleading statements concerning the Company’s reserves and underwriting standards. The Company is not able at this time to determine or predict the ultimate outcome of this proceeding or provide a reasonable estimate or range of estimates of the possible outcome or loss, if any, in this matter. |
Business and Significant Acco_2
Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Business and Significant Accounting Policies Business The accompanying consolidated financial statements of Argo Group International Holdings, Ltd. and its subsidiaries (“Argo Group,” “we,” “us,” “our” or the “Company”) 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. Argo Group is an underwriter of specialty insurance products in the property and casualty market. 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 expected credit losses; estimates of written and earned premiums; reinsurance premium receivable; fair value of investments and assessment of potential impairment, including the allowance for credit losses on fixed maturity securities; valuation of goodwill and intangibles and our deferred tax asset valuation allowance. Actual results could materially differ from those estimates. Certain financial information that is normally 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 and Form 10-K/A for the year ended December 31, 2021 filed with the Securities and Exchange Commission ("SEC") (collectively, “2021 Form 10-K”). |
Reclassification | Certain reclassifications have been made to financial information presented for prior years to conform to the current year’s presentation. |
Allowance for Credit Losses | Allowance for Credit Losses For fixed maturities with a decline in fair value below the amortized cost due to credit-related factors, an allowance is established for the difference between the estimated recoverable value and amortized cost with a corresponding charge to Net investment and other gains (losses) in the Condensed Consolidated Statements of Income (Loss). The allowance is limited to the difference between amortized cost and fair value. The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not associated with credit-related factors is recognized in the Condensed Consolidated Statements of Comprehensive Income (Loss). Accrued interest is excluded from the measurement of the allowance for credit losses. When determining if a credit loss has been incurred, we may consider the historical performance of the security, available market information and security specific considerations such as the priority payment of the security. In addition, inputs used in our analysis include, but are not limited to, credit ratings and downgrades, delinquency rates, missed scheduled interest or principal payments, purchase yields, underlying asset performance, collateral types, modeled default rates, modeled severity rates, call/prepayment rates, expected cash flows, industry concentrations, and potential or filed bankruptcies or restructurings. In cooperation with our investment managers, we evaluate for credit losses each quarter utilizing a bottom up review approach. At the security level, a determination is made as to whether a decline in fair value below the amortized cost basis is due to credit-related or noncredit-related factors. If we determine that all or a portion of a fixed maturity is uncollectible, the uncollectible amortized cost is written off with a corresponding reduction to the allowance for credit losses. If we collect cash flows that were previously written off, the recovery is recognized in realized investment gains. We also consider whether we intend to sell an available-for-sale security or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost. In these instances, a decline in fair value is recognized in Net investment and other gains (losses) in the Condensed Consolidated Statements of Income (Loss) based on the fair value of the security at the time of assessment, resulting in a new cost basis for the security. |
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 September 30, 2022 and December 31, 2021, the fair value of our debt instruments is determined using both Level 1 and Level 2 inputs, as previously defined in Note 3, “Investments.” We receive fair value prices from third-party pricing services for our financial instruments as well as for similar financial instruments. These prices are determined using observable market information such as publicly traded quoted prices, and trading prices for similar financial instruments actively being traded in the current market. We have reviewed the processes used by the third-party providers for pricing the instruments 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 September 30, 2022 and December 31, 2021. A description of the valuation techniques we use to measure these liabilities at fair value is as follows: Senior Unsecured Fixed Rate Notes Level 1: • Our senior unsecured fixed rate notes are valued 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. • Our trust preferred debentures, subordinated debentures and floating rate loan stock are typically valued using Level 2 inputs. For these securities, we obtain fair value measurements from a third-party pricing service using quoted prices for similar securities being traded in active markets at the reporting date, as our specific debt instruments are less frequently traded. |
Financing Receivable | Commercial Mortgage Loans Commercial mortgages are carried at unpaid principal balances less allowance for credit losses, plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loans is accrued as earned. |
Non-Operating Expense | Non-Operating Expenses Non-operating expenses represent costs not associated with our ongoing insurance or other operations, including severance expenses, certain legal costs, merger and acquisition and other transaction-related expenses, and certain non-recurring expenses. |
Fair Value Measurement | Fair Value Measurements Fair value is the price that would be received upon the sale of 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. • 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. To validate the fair value of investments in the Company’s financial statements, we receive prices from multiple sources including third-party pricing services and our outside investment managers. Through a comparative analysis, the Company validates the reasonableness of its valuations. 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 September 30, 2022 and December 31, 2021. 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 or Level 3 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 brokers and independent valuation services, both based upon estimates, assumptions and other unobservable inputs. 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. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, allowance for credit losses, and fair value of fixed maturity investments were as follows: September 30, 2022 (in millions) Amortized Gross Gross Allowance for Credit Losses Fair Fixed maturities U.S. Governments $ 548.9 $ — $ 37.1 $ — $ 511.8 Foreign Governments 222.7 0.1 23.8 0.7 198.3 Obligations of states and political subdivisions 171.6 0.7 10.9 0.4 161.0 Corporate bonds 1,864.4 1.5 186.9 2.1 1,676.9 Commercial mortgage-backed securities 398.4 — 52.6 — 345.8 Residential mortgage-backed securities 415.3 0.2 52.6 — 362.9 Asset-backed securities 195.8 — 13.3 0.1 182.4 Collateralized loan obligations 314.4 — 23.2 — 291.2 Total fixed maturities $ 4,131.5 $ 2.5 $ 400.4 $ 3.3 $ 3,730.3 December 31, 2021 (in millions) Amortized Gross Gross Allowance for Credit Losses Fair Fixed maturities U.S. Governments $ 422.7 $ 5.5 $ 3.2 $ — $ 425.0 Foreign Governments 234.7 2.2 3.9 0.2 232.8 Obligations of states and political subdivisions 166.7 5.8 1.2 — 171.3 Corporate bonds 1,972.3 33.5 20.3 2.2 1,983.3 Commercial mortgage-backed securities 416.7 6.3 4.3 — 418.7 Residential mortgage-backed securities 480.7 7.5 5.7 — 482.5 Asset-backed securities 173.0 1.3 0.6 0.1 173.6 Collateralized loan obligations 336.4 1.3 1.6 — 336.1 Total fixed maturities $ 4,203.2 $ 63.4 $ 40.8 $ 2.5 $ 4,223.3 |
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 September 30, 2022, by contractual maturity, were as follows: (in millions) Amortized Fair Due in one year or less $ 174.0 $ 170.8 Due after one year through five years 1,921.3 1,783.4 Due after five years through ten years 647.5 542.1 Due after ten years 64.7 51.6 Structured securities 1,324.0 1,182.4 Total $ 4,131.5 $ 3,730.3 |
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 September 30, 2022 and December 31, 2021 were as follows: September 30, 2022 (in millions) Carrying Unfunded Investment Type Hedge funds $ 55.0 $ — Private equity 263.0 116.3 Overseas deposits 78.9 — Other 4.7 — Total other investments $ 401.6 $ 116.3 December 31, 2021 (in millions) Carrying Unfunded Investment Type Hedge funds $ 58.6 $ — Private equity 248.9 64.2 Overseas deposits 74.9 — Other 4.8 — Total other investments $ 387.2 $ 64.2 |
Unrealized Gain (Loss) on Investments | An aging of unrealized losses on our investments in fixed maturities is presented below: September 30, 2022 Less Than One Year One Year or Greater Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities U.S. Governments $ 430.0 $ 26.0 $ 81.8 $ 11.1 $ 511.8 $ 37.1 Foreign Governments 134.6 17.4 63.7 6.4 198.3 23.8 Obligations of states and political subdivisions 141.7 6.4 19.3 4.5 161.0 10.9 Corporate bonds 1,305.7 111.1 371.2 75.8 1,676.9 186.9 Commercial mortgage-backed securities 243.2 26.0 102.6 26.6 345.8 52.6 Residential mortgage-backed securities 232.3 25.1 130.6 27.5 362.9 52.6 Asset-backed securities 175.8 12.4 6.6 0.9 182.4 13.3 Collateralized loan obligations 278.2 22.3 13.0 0.9 291.2 23.2 Total fixed maturities $ 2,941.5 $ 246.7 $ 788.8 $ 153.7 $ 3,730.3 $ 400.4 December 31, 2021 Less Than One Year One Year or Greater Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities U.S. Governments $ 193.4 $ 2.6 $ 14.6 $ 0.6 $ 208.0 $ 3.2 Foreign Governments 152.4 3.3 2.6 0.6 155.0 3.9 Obligations of states and political subdivisions 46.0 0.8 0.1 0.4 46.1 1.2 Corporate bonds 854.3 18.3 41.7 2.0 896.0 20.3 Commercial mortgage-backed securities 198.8 4.1 6.5 0.2 205.3 4.3 Residential mortgage-backed securities 284.2 5.6 4.0 0.1 288.2 5.7 Asset-backed securities 62.6 0.6 — — 62.6 0.6 Collateralized loan obligations 176.1 1.6 0.5 — 176.6 1.6 Total fixed maturities $ 1,967.8 $ 36.9 $ 70.0 $ 3.9 $ 2,037.8 $ 40.8 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | The following table presents a roll-forward of the changes in allowance for credit losses on available-for-sale fixed maturities by industry category for the three and nine months ending September 30, 2022 and 2021, respectively: (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, June 30, 2022 $ 0.5 $ 0.4 $ 1.0 $ 0.1 $ 2.0 Securities for which allowance was not previously recorded 0.1 — 1.1 — 1.2 Securities sold during the period — — — — — Reductions for credit impairments — — — — — Additional net increases (decreases) in existing allowance 0.1 — — — 0.1 Ending balance, September 30, 2022 $ 0.7 $ 0.4 $ 2.1 $ 0.1 $ 3.3 (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, June 30, 2021 $ 0.2 $ — $ 6.2 $ — $ 6.4 Securities for which allowance was not previously recorded — — 0.7 0.2 0.9 Securities sold during the period — — (0.2) — (0.2) Additional net increases (decreases) in existing allowance — — (0.1) — (0.1) Ending balance, September 30, 2021 $ 0.2 $ — $ 6.6 $ 0.2 $ 7.0 (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, January 1, 2022 $ 0.2 $ — $ 2.2 $ 0.1 $ 2.5 Securities for which allowance was not previously recorded 0.4 — 1.6 — 2.0 Securities sold during the period (0.1) — (0.6) — (0.7) Reductions for credit impairments — — (1.4) — (1.4) Additional net increases (decreases) in existing allowance 0.2 0.4 0.3 — 0.9 Ending balance, September 30, 2022 $ 0.7 $ 0.4 $ 2.1 $ 0.1 $ 3.3 (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, January 1, 2021 $ 0.2 $ 0.1 $ 6.1 $ 0.2 $ 6.6 Securities for which allowance was not previously recorded — — 2.7 0.2 2.9 Securities sold during the period — — (1.1) — (1.1) Additional net increases (decreases) in existing allowance — (0.1) (1.1) (0.2) (1.4) Ending balance, September 30, 2021 $ 0.2 $ — $ 6.6 $ 0.2 $ 7.0 |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table presents loans by property type: September 30, 2022 (in millions) Cost Composition Loan Count Apartments $ 86.3 54.4 % 16 Hotel 25.0 15.7 % 4 Industrial 26.0 16.3 % 4 Retail 21.5 13.6 % 4 Total $ 158.8 100.0 % 28 |
Financing Receivable Credit Quality Indicators | The following table presents our loans by Debt Service Covenant Ratio (“DSCR”): September 30, 2022 (in millions) Cost Loan Count 1.00 to 1.50 $ 10.4 2 Greater than 1.5 to 2.0 59.3 10 Greater than 2.0 to 3.0 52.0 10 Greater than 3.0 to 4.0 25.8 4 Greater than 4.0 11.3 2 Total $ 158.8 28 The following table presents loans by Loan To Value (“LTV”): September 30, 2022 (in millions) Cost Loan Count Equal to or less than 50.0% $ 35.6 6 Greater than 50.0% to 55.0% 9.1 2 Greater than 55.0% to 60.0% 42.6 8 Greater than 60.0% to 70.0% 71.5 12 Total $ 158.8 28 |
Financing Receivable, before Allowance for Credit Loss, Maturity | The following table presents loans by maturity: September 30, 2022 (in millions) Cost Loan Count Greater than One Year and Less than Three $ 54.8 $ 10 Greater than Three Years and Less than Five Years 33.8 6 Greater than Five Years and Less than Seven Years 20.4 4 Greater than Seven Years and Less than Ten Years 49.8 8 Total $ 158.8 28 |
Schedule of Company's Gross Realized Investment Gains (Losses) | The following table presents our gross realized investment gains and losses: For the Three Months Ended For the Nine Months Ended (in millions) 2022 2021 2022 2021 Realized gains on fixed maturities and other: Fixed maturities $ 1.1 $ 3.3 $ 17.0 $ 26.3 Other investments, including short-terms 7.8 0.9 19.9 8.9 Other assets — — — 3.4 8.9 4.2 36.9 38.6 Realized losses on fixed maturities and other: Fixed maturities (3.5) (0.4) (24.9) (5.0) Other investments, including short-terms (12.1) (3.3) (40.1) (16.6) Other assets — (1.4) — (14.0) (15.6) (5.1) (65.0) (35.6) Other net losses recognized on fixed maturities and other: Credit gains (losses) on fixed maturities (1.5) (0.7) (4.9) (1.5) Impairment related to change in intent (1) (34.2) — (34.2) — Other (2) (1.4) — (55.1) — (37.1) (0.7) (94.2) (1.5) Equity securities: Net realized gains (losses) on equity securities 0.2 1.4 0.2 0.3 Change in unrealized gains (losses) on equity securities held at the end of the period (1.1) (5.1) 2.5 30.7 Net gains (losses) on equity securities (0.9) (3.7) 2.7 31.0 Net investment and other gains (losses) before income taxes (44.7) (5.3) (119.6) 32.5 Income tax (benefit) provision (7.0) — (8.8) — Net investment and other gains (losses), net of income taxes $ (37.7) $ (5.3) $ (110.8) $ 32.5 (1) Refer to the Loss Portfolio Transfer - U.S. in Note 1, “Business and Significant Accounting Policies” for additional information. (2) Refer to the sale of AGSE and Argo Seguros in Note 1, “Business and Significant Accounting Policies” for additional information. |
Schedule of Changes in Unrealized Appreciation (Depreciation) | Changes in unrealized gains (losses) related to investments are summarized as follows: For the Three Months Ended For the Nine Months Ended (in millions) 2022 2021 2022 2021 Change in unrealized gains (losses) Fixed maturities $ (88.9) $ (23.0) $ (417.6) $ (70.7) Other and short-term investments (1.2) (0.3) (0.3) (0.6) Net unrealized investment gains (losses) before income taxes (90.1) (23.3) (417.9) (71.3) Income tax provision (benefit) (14.2) (4.4) (77.3) (13.0) Net unrealized investment gains (losses), net of income taxes $ (75.9) $ (18.9) $ (340.6) $ (58.3) |
Schedule of Fair Value of Foreign Currency Exchange Forward Contracts | The fair value of our foreign currency exchange forward contracts as of September 30, 2022 and December 31, 2021 was as follows: September 30, 2022 December 31, 2021 (in millions) Notional Amount Fair Value Notional Amount Fair Value Operational currency exposure $ 288.8 $ (3.4) $ 276.3 $ (0.3) Asset manager investment exposure 25.0 3.8 35.5 (0.3) Total $ 313.8 $ 0.4 $ 311.8 $ (0.6) |
Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts | The following table represents our gross realized investment gains and losses on our foreign currency exchange forward contracts: For the Three Months Ended For the Nine Months Ended (in millions) 2022 2021 2022 2021 Realized gains Operational currency exposure $ 4.7 $ — $ 12.5 $ 7.1 Asset manager investment exposure 3.1 1.0 7.3 2.8 Total return strategy — 6.9 — 13.0 Gross realized investment gains 7.8 7.9 19.8 22.9 Realized losses Operational currency exposure (11.2) (5.2) (36.7) (17.8) Asset manager investment exposure — — (1.0) (0.8) Total return strategy — (6.9) — (12.0) Gross realized investment losses (11.2) (12.1) (37.7) (30.6) Net realized investment (losses) gains on foreign currency exchange forward contracts $ (3.4) $ (4.2) $ (17.9) $ (7.7) |
Schedule of Restricted Assets | The following table presents our components of restricted assets: (in millions) September 30, 2022 December 31, 2021 Securities on deposit for regulatory and other purposes $ 158.5 $ 195.6 Securities pledged as collateral for letters of credit and other 178.5 193.9 Securities on deposit supporting Lloyd’s business (1) 257.0 296.8 Total restricted investments $ 594.0 $ 686.3 (1) Argo Group is required to maintain Funds at Lloyd’s (“FAL”) to support its business for Syndicate 1200 and Syndicate 1910. At September 30, 2022 the amount of securities pledged for FAL was $257.0 million, of which $134.0 million was provided by Argo Re, Ltd. |
Financial Assets Measured at Fair Value on Recurring Basis | Based on an analysis of the inputs, our financial assets and liabilities measured at fair value on a recurring basis have been categorized as follows: Fair Value Measurements at Reporting Date Using (in millions) September 30, Level 1 (1) Level 2 (2) Level 3 (3) Fixed maturities U.S. Governments $ 511.8 $ 507.5 $ 4.3 $ — Foreign Governments 198.3 — 198.3 — Obligations of states and political subdivisions 161.0 — 161.0 — Corporate bonds 1,676.9 — 1,654.3 22.6 Commercial mortgage-backed securities 345.8 — 345.8 — Residential mortgage-backed securities 362.9 — 362.9 — Asset-backed securities 182.4 — 163.2 19.2 Collateralized loan obligations 291.2 — 291.2 — Total fixed maturities 3,730.3 507.5 3,181.0 41.8 Equity securities 43.9 26.9 — 17.0 Other investments 79.2 — 79.2 — Short-term investments 570.7 570.3 0.4 — Derivatives 0.4 — 0.4 — Total assets $ 4,424.5 $ 1,104.7 $ 3,261.0 $ 58.8 (1) Quoted prices in active markets for identical assets (2) Significant other observable inputs (3) Significant unobservable inputs Fair Value Measurements at Reporting Date Using (in millions) December 31, Level 1 (1) Level 2 (2) Level 3 (3) Fixed maturities U.S. Governments $ 425.0 $ 417.4 $ 7.6 $ — Foreign Governments 232.8 — 232.8 — Obligations of states and political subdivisions 171.3 — 171.3 — Corporate bonds 1,983.3 — 1,980.5 2.8 Commercial mortgage-backed securities 418.7 — 418.7 — Residential mortgage-backed securities 482.5 — 482.5 — Asset-backed securities 173.6 — 173.6 — Collateralized loan obligations 336.1 — 336.1 — Total fixed maturities 4,223.3 417.4 3,803.1 2.8 Equity securities 56.3 41.6 — 14.7 Other investments 75.4 — 75.4 — Short-term investments 655.8 653.9 1.9 — Total assets $ 5,010.8 $ 1,112.9 $ 3,880.4 $ 17.5 Derivatives $ 0.6 $ — $ 0.6 $ — Total liabilities $ 0.6 $ — $ 0.6 $ — (1) Quoted prices in active markets for identical assets (2) Significant other observable inputs (3) 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 Unobservable Inputs (Level 3) (in millions) Credit Financial Equity Total Beginning balance, January 1, 2022 $ 2.8 $ 14.7 $ 17.5 Transfers into Level 3 42.6 0.6 43.2 Transfers out of Level 3 — — — Total gains or losses (realized/unrealized): Included in net income (0.3) 0.6 0.3 Included in other comprehensive income (2.9) — (2.9) Purchases, issuances, sales, and settlements: Purchases 1.4 1.1 2.5 Issuances — — — Sales (1.8) — (1.8) Settlements — — — Ending balance, September 30, 2022 $ 41.8 $ 17.0 $ 58.8 Amount of total gains or losses for the year included in net income attributable to the change in unrealized gains or losses relating to assets still held at September 30, 2022 $ — $ (3.6) $ (3.6) (in millions) Credit Financial Equity Total Beginning balance, January 1, 2021 $ 7.0 $ 17.5 $ 24.5 Transfers into Level 3 — 2.4 2.4 Transfers out of Level 3 — — — Total gains or losses (realized/unrealized): Included in net income — 4.2 4.2 Included in other comprehensive loss (0.8) — (0.8) Purchases, issuances, sales, and settlements: Purchases 0.1 1.2 1.3 Issuances — — — Sales (3.5) (10.6) (14.1) Settlements — — — Ending balance, December 31, 2021 $ 2.8 $ 14.7 $ 17.5 Amount of total gains or losses for the year included in net income attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2021 $ — $ — $ — |
Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value | The Company holds investments in commercial mortgage loans reported at cost, less an allowance for expected credit losses, on the Balance Sheet. As of September 30, 2022, the cost and estimated fair value of the investments in commercial mortgage loans were: September 30, 2022 (in millions) Cost Fair Value Commercial Mortgage Loans $ 158.8 $ 152.7 A summary of our financial instruments whose carrying value did not equal fair value is shown below: September 30, 2022 December 31, 2021 (in millions) Carrying Fair Carrying Fair Junior subordinated debentures: Trust preferred debentures $ 172.7 $ 168.2 $ 172.7 $ 172.9 Subordinated debentures 85.8 89.4 85.5 91.9 Total junior subordinated debentures 258.5 257.6 258.2 264.8 Senior unsecured fixed rate notes 140.5 131.6 140.3 148.4 Floating rate loan stock 52.5 51.1 57.0 57.1 $ 451.5 $ 440.3 $ 455.5 $ 470.3 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Credit Loss [Abstract] | |
Premium Receivable, Allowance for Credit Loss | The following table represents the balances of premiums receivable, net of allowance for expected credit losses, at September 30, 2022 and January 1, 2022, and the changes in the allowance for expected credit losses for the nine months ended September 30, 2022. (in millions) Premiums Receivable, Net of Allowance for Estimated Uncollectible Premiums Allowance for Estimated Uncollectible Premiums Balance, January 1, 2022 $ 648.6 $ 5.7 Current period change for estimated uncollectible premiums 0.2 Write-offs of uncollectible premiums receivable (1) (1.8) Balance, September 30, 2022 $ 656.5 $ 4.1 (1) Includes allowance transferred as a result of divestitures in the amount of $1.5 million. |
Reinsurance Recoverable, Allowance for Credit Loss | Reinsurance Recoverables The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at September 30, 2022 and January 1, 2022, and changes in the allowance for estimated uncollectible reinsurance for the nine months ended September 30, 2022. (in millions) Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance Allowance for Estimated Uncollectible Reinsurance Balance, January 1, 2022 $ 2,966.4 $ 3.8 Current period change for estimated uncollectible reinsurance 0.7 Write-offs of uncollectible reinsurance recoverables — Balance, September 30, 2022 $ 3,015.8 $ 4.5 |
Reserves for Losses and Loss _2
Reserves for Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 Nine Months Ended (in millions) 2022 2021 Net reserves beginning of the year $ 3,123.2 $ 2,906.1 Add: Losses and LAE incurred during current calendar year, net of reinsurance: Current accident year 826.8 884.9 Prior accident years 31.6 6.0 Losses and LAE incurred during calendar year, net of reinsurance 858.4 890.9 Deduct: Losses and LAE payments made during current calendar year, net of reinsurance: Current accident year 112.0 100.5 Prior accident years 623.2 552.8 Losses and LAE payments made during current calendar year, net of reinsurance: 735.2 653.3 Divestitures (1) (35.2) — Net reserves ceded: Loss portfolio transfer (for years of account 2019 and 2018) (2) (175.5) — Reinsurance to close transaction (for years of account 2017 and prior) (3) — 219.7 Change in participation interest (4) 32.2 12.5 Foreign exchange adjustments (10.6) (7.3) Net reserves - end of period 3,057.3 2,929.2 Add: Reinsurance recoverables on unpaid losses and LAE, end of period 2,674.1 2,510.3 Gross reserves - end of period $ 5,731.4 $ 5,439.5 (1) Refer to the sale of Argo Seguros and AGSE in Note 1, “Business and Significant Accounting Policies” for additional information. (2) Loss portfolio transfer on Syndicate 1200's reserves for the 2018 and 2019 years of account. Refer to Note 1, “Business and Significant Accounting Policies” for additional information. (3) Amount represents reserves ceded under the reinsurance to close transaction with RiverStone for Lloyd’s years of account 2017 and prior, effective January 1, 2021. (4) 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 Nine Months Ended (in millions) 2022 2021 U.S. Operations $ 27.9 $ (0.7) International Operations 0.8 0.1 Run-off Lines 2.9 6.6 Total (favorable) unfavorable prior-year development $ 31.6 $ 6.0 |
Disclosures about Fair Value _2
Disclosures about Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value | The Company holds investments in commercial mortgage loans reported at cost, less an allowance for expected credit losses, on the Balance Sheet. As of September 30, 2022, the cost and estimated fair value of the investments in commercial mortgage loans were: September 30, 2022 (in millions) Cost Fair Value Commercial Mortgage Loans $ 158.8 $ 152.7 A summary of our financial instruments whose carrying value did not equal fair value is shown below: September 30, 2022 December 31, 2021 (in millions) Carrying Fair Carrying Fair Junior subordinated debentures: Trust preferred debentures $ 172.7 $ 168.2 $ 172.7 $ 172.9 Subordinated debentures 85.8 89.4 85.5 91.9 Total junior subordinated debentures 258.5 257.6 258.2 264.8 Senior unsecured fixed rate notes 140.5 131.6 140.3 148.4 Floating rate loan stock 52.5 51.1 57.0 57.1 $ 451.5 $ 440.3 $ 455.5 $ 470.3 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | Based on an analysis of the inputs, our financial instruments measured at fair value for disclosure purposes have been categorized as follows: Fair Value Measurements at Reporting Date Using (in millions) September 30, 2022 Level 1 (1) Level 2 (2) Level 3 (3) Junior subordinated debentures: Trust preferred debentures $ 168.2 $ — $ 168.2 $ — Subordinated debentures 89.4 — 89.4 — Total junior subordinated debentures 257.6 — 257.6 — Senior unsecured fixed rate notes 131.6 131.6 — — Floating rate loan stock 51.1 — 51.1 — $ 440.3 $ 131.6 $ 308.7 $ — (1) Quoted prices in active markets for identical assets (2) Significant other observable inputs (3) Significant unobservable inputs Fair Value Measurements at Reporting Date Using (in millions) December 31, 2021 Level 1 (1) Level 2 (2) Level 3 (3) Junior subordinated debentures: Trust preferred debentures $ 172.9 $ — $ 172.9 $ — Subordinated debentures 91.9 — 91.9 — Total junior subordinated debentures 264.8 — 264.8 — Senior unsecured fixed rate notes 148.4 148.4 — — Floating rate loan stock 57.1 — 57.1 — $ 470.3 $ 148.4 $ 321.9 $ — (1) Quoted prices in active markets for identical assets (2) Significant other observable inputs (3) Significant unobservable inputs |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 nine months ended September 30, 2022 and 2021 is presented below: (in millions) Foreign Currency Translation Adjustments Unrealized Defined Benefit Pension Plans Total Balance, January 1, 2022 $ (35.3) $ 19.7 $ (7.1) $ (22.7) Other comprehensive loss before reclassifications (1.4) (373.9) — (375.3) Amounts reclassified from accumulated other comprehensive loss 31.8 33.3 — 65.1 Net current-period other comprehensive income (loss) 30.4 (340.6) — (310.2) Balance, September 30, 2022 $ (4.9) $ (320.9) $ (7.1) $ (332.9) (in millions) Foreign Currency Translation Adjustments Unrealized Defined Benefit Pension Plans Total Balance, January 1, 2021 $ (37.9) $ 105.1 $ (8.6) $ 58.6 Other comprehensive income (loss) before reclassifications 0.2 (49.2) 1.5 (47.5) Amounts reclassified from accumulated other comprehensive loss — (9.1) — (9.1) Net current-period other comprehensive income (loss) 0.2 (58.3) 1.5 (56.6) Balance, September 30, 2021 $ (37.7) $ 46.8 $ (7.1) $ 2.0 |
Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income | The amounts reclassified from accumulated other comprehensive income (loss) shown in the above table have been included in the following captions in our Condensed Consolidated Statements of Income (Loss): For the Three Months Ended For the Nine Months Ended (in millions) 2022 2021 2022 2021 Unrealized gains and losses on securities: Net realized investment gains (losses) (1) $ 47.5 $ 8.2 $ 42.1 $ (11.0) Provision for income taxes (9.8) (0.4) (8.8) 1.9 Foreign currency translation adjustments: Net realized foreign currency translation losses (2) — — 31.8 — Total, net of taxes $ 37.7 $ 7.8 $ 65.1 $ (9.1) (1) Net realized investment gains (losses) includes losses realized as a result of the Loss Portfolio Transfer - U.S . Refer to the sale of Argo Underwriting Agency Limited in Note 1, “Business and Significant Accounting Policies” for additional information. (2) Foreign currency translation losses were realized as a result of the sale of Argo Seguros and AGSE. Refer to the sale of Argo Seguros and AGSE in Note 1, “Business and Significant Accounting Policies” for additional information. |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share on Basic and Diluted Basis | The following table presents the calculation of net income (loss) per common share on a basic and diluted basis: For the Three Months Ended For the Nine Months Ended (in millions, except number of shares and per share amounts) 2022 2021 2022 2021 Net income (loss) $ (48.8) $ 22.4 $ (66.0) $ 122.0 Less: Preferred share dividends 2.6 2.6 7.9 7.9 Net income (loss) attributable to common shareholders (51.4) 19.8 (73.9) 114.1 Weighted average common shares outstanding - basic 35,014,182 34,852,274 34,955,787 34,794,078 Effect of dilutive securities: Equity compensation awards — 181,976 — 265,888 Weighted average common shares outstanding - diluted 35,014,182 35,034,250 34,955,787 35,059,966 Net income (loss) per common share: Basic $ (1.47) $ 0.57 $ (2.11) $ 3.28 Diluted $ (1.47) $ 0.56 $ (2.11) $ 3.26 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 Nine Months Ended (in millions) 2022 2021 Senior unsecured fixed rate notes $ 7.0 $ 7.0 Junior subordinated debentures 9.0 7.5 Other indebtedness 1.0 1.5 Total interest paid $ 17.0 $ 16.0 Income taxes paid $ 26.2 $ 30.7 Income taxes recovered (0.5) (1.2) Income taxes paid, net $ 25.7 $ 29.5 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Restricted Share Activity | A summary of non-vested restricted share activity as of September 30, 2022 and changes during the nine months then ended is as follows: Shares Weighted-Average Outstanding at January 1, 2022 278,430 $ 49.57 Granted 357,408 39.47 Reclassed from performance shares 14,373 32.61 Vested and issued (153,391) 47.02 Expired or forfeited (118,339) 43.48 Outstanding at September 30, 2022 378,481 $ 42.33 |
Schedule of Performance Shares | A summary of non-vested performance share activity as of September 30, 2022 and changes during the nine months then ended is as follows: Shares Weighted-Average Outstanding at January 1, 2022 200,564 $ 47.52 Granted 124,464 41.00 Reclassed to restricted shares (14,373) 32.61 Vested and issued (3,275) 61.05 Expired or forfeited (176,128) 44.75 Outstanding at September 30, 2022 131,252 $ 46.34 |
Underwriting, Acquisition and_2
Underwriting, Acquisition and Insurance Expenses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Underwriting, Acquisition and Insurance Expenses [Abstract] | |
Underwriting, Acquisition and Insurance Expenses | Underwriting, acquisition and insurance expenses were as follows: For the Three Months Ended For the Nine Months Ended (in millions) 2022 2021 2022 2021 Commissions $ 72.7 $ 88.0 $ 211.9 $ 236.2 Other underwriting and insurance expenses 97.5 105.1 297.9 315.7 Total underwriting, acquisition and insurance expenses before deferral 170.2 193.1 509.8 551.9 Net deferral of policy acquisition costs (9.2) (16.0) (14.9) (21.1) Total underwriting, acquisition and insurance expenses $ 161.0 $ 177.1 $ 494.9 $ 530.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates | For the three and nine months ended September 30, 2022 and 2021, pre-tax income (loss) attributable to our operations and the corresponding operations’ effective tax rates were as follows: For the Three Months Ended September 30, 2022 2021 (in millions) Pre-Tax Effective Pre-Tax Effective Bermuda $ (11.3) — % $ 7.2 — % United States (3.2) 46.3 % 21.4 26.8 % United Kingdom (37.6) 6.8 % (6.1) (1.0) % Brazil — — % 5.9 — % United Arab Emirates 0.5 — % 0.9 — % Ireland (1.3) — % — (1) — % Italy 0.1 (1.7) % 0.2 — % Malta — — % (1.3) — % Switzerland — — % — (1) — % Pre-tax income $ (52.8) 7.6 % $ 28.2 20.6 % (1) Pre-tax income (loss) for the respective year was less than $0.1 million. For the Nine Months Ended September 30, 2022 2021 (in millions) Pre-Tax Effective Pre-Tax Effective Bermuda $ (60.3) — % $ 14.5 — % United States 81.6 20.7 % 126.7 20.7 % United Kingdom (23.9) (16.2) % (14.9) 68.4 % Brazil (0.1) (422.4) % 9.8 — % United Arab Emirates 1.3 — % 1.2 — % Ireland (39.3) — % (0.1) — % Italy (0.1) (46.4) % 1.4 — % Malta (4.1) — % (0.4) — % Switzerland — — % (0.1) — % Pre-tax income $ (44.9) (47.0) % $ 138.1 11.7 % |
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 For the Nine Months Ended (in millions) 2022 2021 2022 2021 Income tax provision at expected rate $ (7.8) $ 5.6 $ 11.1 $ 28.4 Tax effect of: Nontaxable investment income (0.1) (0.1) (0.3) (0.4) Foreign exchange adjustments — 0.2 0.8 (0.3) Goodwill and intangible assets 5.5 — — 5.5 — Withholding taxes — — — 0.1 Sale of Brazil and Malta Operations 0.1 — 6.6 — Change in uncertain tax position liability — (0.4) 0.6 (2.3) Change in valuation allowance (1.3) 0.8 (6.7) (1.1) Impact of change in tax rate related to Finance Act 2021 (0.4) — 0.9 (7.4) Prior period adjustment (0.5) — 0.3 — Other 0.5 (0.3) 2.3 (0.9) Income tax provision $ (4.0) $ 5.8 $ 21.1 $ 16.1 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Revenue and Income (Loss) Before Income Taxes for Each Segment | Revenue and income (loss) before income taxes for each segment were as follows: For the Three Months Ended For the Nine Months Ended (in millions) 2022 2021 2022 2021 Revenue: Earned premiums U.S. Operations $ 329.3 $ 323.5 $ 998.5 $ 952.4 International Operations 125.2 163.9 390.7 471.1 Run-off Lines 0.5 0.1 0.7 0.4 Total earned premiums 455.0 487.5 1,389.9 1,423.9 Net investment income U.S. Operations 23.1 29.2 68.7 91.7 International Operations 10.3 12.3 30.4 38.2 Run-off Lines 0.6 0.9 1.8 2.8 Corporate and Other — 3.7 — 10.5 Total net investment income 34.0 46.1 100.9 143.2 Net investment and other gains (losses) (44.7) (5.3) (119.6) 32.5 Total revenue $ 444.3 $ 528.3 $ 1,371.2 $ 1,599.6 For the Three Months Ended For the Nine Months Ended (in millions) 2022 2021 2022 2021 Income (loss) before income taxes U.S. Operations $ 26.6 $ 39.9 $ 113.5 $ 130.1 International Operations 3.3 6.9 28.6 14.6 Run-off Lines 0.7 (3.6) (1.9) (4.5) Total segment income before income taxes 30.6 43.2 140.2 140.2 Corporate and Other (19.3) (11.0) (53.5) (30.2) Net investment and other gains (losses) (44.7) (5.3) (119.6) 32.5 Foreign currency exchange gains (losses) 9.1 1.3 16.5 (4.4) Impairment of goodwill (28.5) — (28.5) — Total income (loss) before income taxes $ (52.8) $ 28.2 $ (44.9) $ 138.1 |
Schedule of Earned Premiums by Geographic Location | The table below presents earned premiums by geographic location for the three and nine months ended September 30, 2022 and 2021. 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 For the Nine Months Ended (in millions) 2022 2021 2022 2021 United States $ 329.8 $ 322.7 $ 999.2 $ 949.7 United Kingdom 113.8 129.1 349.8 344.9 Bermuda 11.4 10.3 28.8 46.1 Malta — 7.7 3.7 32.7 All other jurisdictions — 17.7 8.4 50.5 Total earned premiums $ 455.0 $ 487.5 $ 1,389.9 $ 1,423.9 |
Identifiable Assets | The following table represents identifiable assets: (in millions) September 30, 2022 December 31, 2021 U.S. Operations $ 5,597.1 $ 5,800.1 International Operations 3,864.4 3,932.3 Run-off Lines 266.1 314.7 Corporate and Other 131.1 270.7 Total $ 9,858.7 $ 10,317.8 |
Business and Significant Acco_3
Business and Significant Accounting Policies - Additional Information (Details) € in Millions, R$ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Jun. 22, 2022 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Sep. 08, 2022 USD ($) | Aug. 08, 2022 USD ($) | Jun. 22, 2022 EUR (€) | Feb. 15, 2022 USD ($) | Feb. 15, 2022 BRL (R$) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Impairment of goodwill and intangibles | $ 28.5 | $ 0 | $ 28.5 | $ 0 | |||||||||
Impairment of goodwill and intangible assets | $ 28.5 | $ 0 | 28.5 | $ 0 | |||||||||
Portfolio transfer reserves cover | $ 746 | ||||||||||||
Additional cover in excess of threshold | 275 | ||||||||||||
Additional cover threshold | 821 | ||||||||||||
Policy limit | 1,096 | ||||||||||||
Recognized loss | 37.7 | ||||||||||||
Recognized loss related to impaired assets | 34.2 | ||||||||||||
Minimum | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Loss corridor retained | 75 | ||||||||||||
Maximum | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Loss corridor retained | $ 821 | ||||||||||||
Forecast | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Estimated after-tax expense | $ 100 | ||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Argo Underwriting Agency Limited | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Cash consideration received from sale | $ 125 | ||||||||||||
Impairment of goodwill and intangibles | 28.5 | ||||||||||||
Disposal group, intangible assets | 17.3 | ||||||||||||
Impairment of goodwill and intangible assets | $ 11.2 | ||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ArgoGlobal Holdings Ltd. | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Cash consideration received from sale | $ 5.2 | € 4.9 | |||||||||||
Loss on disposal | 21.3 | ||||||||||||
Losses from the realization of historical foreign currency translation losses | $ 4.5 | ||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Argo Seguros Brasil S.A. | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Cash consideration received from sale | $ 26.9 | R$ 140 | |||||||||||
Loss on disposal | $ 33.8 | $ 6.3 | |||||||||||
Losses from the realization of historical foreign currency translation losses | $ 27.3 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) security | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) security | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||||
Fair value of investments, assets managed on behalf of the trade capital providers | $ | $ 56.4 | $ 56.4 | $ 89.6 | ||
Number of securities in an unrealized loss position, total | security | 5,020 | 5,020 | |||
Number of securities in an unrealized loss position for less than one year | security | 1,115 | 1,115 | |||
Number of securities in an unrealized loss position for a period of one year or greater | security | 306 | 306 | |||
Credit gains (losses) on fixed maturities | $ | $ 1.3 | $ 0.8 | $ 2.9 | $ 1.5 | |
Gain (Loss) on Investments | |||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||||
Credit gains (losses) on fixed maturities | $ | $ 1.3 | $ 0.8 | $ 2.9 | $ 1.5 |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Fixed maturities | ||||||
Amortized Cost | $ 4,131.5 | $ 4,203.2 | ||||
Gross Unrealized Gains | 2.5 | 63.4 | ||||
Gross Unrealized Losses | 400.4 | 40.8 | ||||
Allowance for Credit Losses | 3.3 | $ 2 | 2.5 | $ 7 | $ 6.4 | $ 6.6 |
Fair Value | 3,730.3 | 4,223.3 | ||||
U.S. Governments | ||||||
Fixed maturities | ||||||
Amortized Cost | 548.9 | 422.7 | ||||
Gross Unrealized Gains | 0 | 5.5 | ||||
Gross Unrealized Losses | 37.1 | 3.2 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 511.8 | 425 | ||||
Foreign Governments | ||||||
Fixed maturities | ||||||
Amortized Cost | 222.7 | 234.7 | ||||
Gross Unrealized Gains | 0.1 | 2.2 | ||||
Gross Unrealized Losses | 23.8 | 3.9 | ||||
Allowance for Credit Losses | 0.7 | 0.2 | ||||
Fair Value | 198.3 | 232.8 | ||||
Obligations of states and political subdivisions | ||||||
Fixed maturities | ||||||
Amortized Cost | 171.6 | 166.7 | ||||
Gross Unrealized Gains | 0.7 | 5.8 | ||||
Gross Unrealized Losses | 10.9 | 1.2 | ||||
Allowance for Credit Losses | 0.4 | 0 | ||||
Fair Value | 161 | 171.3 | ||||
Corporate bonds | ||||||
Fixed maturities | ||||||
Amortized Cost | 1,864.4 | 1,972.3 | ||||
Gross Unrealized Gains | 1.5 | 33.5 | ||||
Gross Unrealized Losses | 186.9 | 20.3 | ||||
Allowance for Credit Losses | 2.1 | 2.2 | ||||
Fair Value | 1,676.9 | 1,983.3 | ||||
Commercial mortgage-backed securities | ||||||
Fixed maturities | ||||||
Amortized Cost | 398.4 | 416.7 | ||||
Gross Unrealized Gains | 0 | 6.3 | ||||
Gross Unrealized Losses | 52.6 | 4.3 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 345.8 | 418.7 | ||||
Residential mortgage-backed securities | ||||||
Fixed maturities | ||||||
Amortized Cost | 415.3 | 480.7 | ||||
Gross Unrealized Gains | 0.2 | 7.5 | ||||
Gross Unrealized Losses | 52.6 | 5.7 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 362.9 | 482.5 | ||||
Asset-backed securities | ||||||
Fixed maturities | ||||||
Amortized Cost | 195.8 | 173 | ||||
Gross Unrealized Gains | 0 | 1.3 | ||||
Gross Unrealized Losses | 13.3 | 0.6 | ||||
Allowance for Credit Losses | 0.1 | 0.1 | ||||
Fair Value | 182.4 | 173.6 | ||||
Collateralized loan obligations | ||||||
Fixed maturities | ||||||
Amortized Cost | 314.4 | 336.4 | ||||
Gross Unrealized Gains | 0 | 1.3 | ||||
Gross Unrealized Losses | 23.2 | 1.6 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | $ 291.2 | $ 336.1 |
Investments - Schedule of Amo_2
Investments - Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity (Detail) $ in Millions | Sep. 30, 2022 USD ($) |
Amortized Cost | |
Due in one year or less | $ 174 |
Due after one year through five years | 1,921.3 |
Due after five years through ten years | 647.5 |
Due after ten years | 64.7 |
Structured securities | 1,324 |
Total | 4,131.5 |
Fair Value | |
Due in one year or less | 170.8 |
Due after one year through five years | 1,783.4 |
Due after five years through ten years | 542.1 |
Due after ten years | 51.6 |
Structured securities | 1,182.4 |
Total | $ 3,730.3 |
Investments - Schedule of Carry
Investments - Schedule of Carrying Value and Unfunded Investment Commitments of Other Invested Assets Portfolio (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Carrying Value | $ 4,905.1 | $ 5,322.6 |
Hedge funds | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 55 | 58.6 |
Unfunded Commitments | 0 | 0 |
Private equity | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 263 | 248.9 |
Unfunded Commitments | 116.3 | 64.2 |
Overseas deposits | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 78.9 | 74.9 |
Unfunded Commitments | 0 | 0 |
Other | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 4.7 | 4.8 |
Unfunded Commitments | 0 | 0 |
Other Investments | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 401.6 | 387.2 |
Unfunded Commitments | $ 116.3 | $ 64.2 |
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 - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | $ 2,941.5 | $ 1,967.8 |
Unrealized Losses, Less Than One Year | 246.7 | 36.9 |
Fair Value, One Year or Greater | 788.8 | 70 |
Unrealized Losses, One Year or Greater | 153.7 | 3.9 |
Fair Value, Total | 3,730.3 | 2,037.8 |
Unrealized Losses, Total | 400.4 | 40.8 |
U.S. Governments | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 430 | 193.4 |
Unrealized Losses, Less Than One Year | 26 | 2.6 |
Fair Value, One Year or Greater | 81.8 | 14.6 |
Unrealized Losses, One Year or Greater | 11.1 | 0.6 |
Fair Value, Total | 511.8 | 208 |
Unrealized Losses, Total | 37.1 | 3.2 |
Foreign Governments | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 134.6 | 152.4 |
Unrealized Losses, Less Than One Year | 17.4 | 3.3 |
Fair Value, One Year or Greater | 63.7 | 2.6 |
Unrealized Losses, One Year or Greater | 6.4 | 0.6 |
Fair Value, Total | 198.3 | 155 |
Unrealized Losses, Total | 23.8 | 3.9 |
Obligations of states and political subdivisions | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 141.7 | 46 |
Unrealized Losses, Less Than One Year | 6.4 | 0.8 |
Fair Value, One Year or Greater | 19.3 | 0.1 |
Unrealized Losses, One Year or Greater | 4.5 | 0.4 |
Fair Value, Total | 161 | 46.1 |
Unrealized Losses, Total | 10.9 | 1.2 |
Corporate bonds | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 1,305.7 | 854.3 |
Unrealized Losses, Less Than One Year | 111.1 | 18.3 |
Fair Value, One Year or Greater | 371.2 | 41.7 |
Unrealized Losses, One Year or Greater | 75.8 | 2 |
Fair Value, Total | 1,676.9 | 896 |
Unrealized Losses, Total | 186.9 | 20.3 |
Commercial mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 243.2 | 198.8 |
Unrealized Losses, Less Than One Year | 26 | 4.1 |
Fair Value, One Year or Greater | 102.6 | 6.5 |
Unrealized Losses, One Year or Greater | 26.6 | 0.2 |
Fair Value, Total | 345.8 | 205.3 |
Unrealized Losses, Total | 52.6 | 4.3 |
Residential mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 232.3 | 284.2 |
Unrealized Losses, Less Than One Year | 25.1 | 5.6 |
Fair Value, One Year or Greater | 130.6 | 4 |
Unrealized Losses, One Year or Greater | 27.5 | 0.1 |
Fair Value, Total | 362.9 | 288.2 |
Unrealized Losses, Total | 52.6 | 5.7 |
Asset-backed securities | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 175.8 | 62.6 |
Unrealized Losses, Less Than One Year | 12.4 | 0.6 |
Fair Value, One Year or Greater | 6.6 | 0 |
Unrealized Losses, One Year or Greater | 0.9 | 0 |
Fair Value, Total | 182.4 | 62.6 |
Unrealized Losses, Total | 13.3 | 0.6 |
Collateralized loan obligations | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 278.2 | 176.1 |
Unrealized Losses, Less Than One Year | 22.3 | 1.6 |
Fair Value, One Year or Greater | 13 | 0.5 |
Unrealized Losses, One Year or Greater | 0.9 | 0 |
Fair Value, Total | 291.2 | 176.6 |
Unrealized Losses, Total | $ 23.2 | $ 1.6 |
Investments - Allowance for Cre
Investments - Allowance for Credit Losses (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 2 | $ 6.4 | $ 2.5 | $ 6.6 |
Securities for which allowance was not previously recorded | 1.2 | 0.9 | 2 | 2.9 |
Securities sold during the period | 0 | (0.2) | (0.7) | (1.1) |
Reductions for credit impairments | 0 | (1.4) | ||
Additional net increases (decreases) in existing allowance | 0.1 | (0.1) | 0.9 | (1.4) |
Ending balance | 3.3 | 7 | 3.3 | 7 |
Foreign Governments | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0.5 | 0.2 | 0.2 | 0.2 |
Securities for which allowance was not previously recorded | 0.1 | 0 | 0.4 | 0 |
Securities sold during the period | 0 | 0 | (0.1) | 0 |
Reductions for credit impairments | 0 | 0 | ||
Additional net increases (decreases) in existing allowance | 0.1 | 0 | 0.2 | 0 |
Ending balance | 0.7 | 0.2 | 0.7 | 0.2 |
Obligations of states and political subdivisions | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0.4 | 0 | 0 | 0.1 |
Securities for which allowance was not previously recorded | 0 | 0 | 0 | 0 |
Securities sold during the period | 0 | 0 | 0 | 0 |
Reductions for credit impairments | 0 | 0 | ||
Additional net increases (decreases) in existing allowance | 0 | 0 | 0.4 | (0.1) |
Ending balance | 0.4 | 0 | 0.4 | 0 |
Corporate bonds | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1 | 6.2 | 2.2 | 6.1 |
Securities for which allowance was not previously recorded | 1.1 | 0.7 | 1.6 | 2.7 |
Securities sold during the period | 0 | (0.2) | (0.6) | (1.1) |
Reductions for credit impairments | 0 | (1.4) | ||
Additional net increases (decreases) in existing allowance | 0 | (0.1) | 0.3 | (1.1) |
Ending balance | 2.1 | 6.6 | 2.1 | 6.6 |
Asset-backed securities | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0.1 | 0 | 0.1 | 0.2 |
Securities for which allowance was not previously recorded | 0 | 0.2 | 0 | 0.2 |
Securities sold during the period | 0 | 0 | 0 | 0 |
Reductions for credit impairments | 0 | 0 | ||
Additional net increases (decreases) in existing allowance | 0 | 0 | 0 | (0.2) |
Ending balance | $ 0.1 | $ 0.2 | $ 0.1 | $ 0.2 |
Investments - Schedule of Comme
Investments - Schedule of Commercial Mortgage Loans (Details) $ in Millions | Sep. 30, 2022 USD ($) loan |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ | $ 158.8 |
Composition | 100% |
Loan Count | loan | 28 |
Apartments | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ | $ 86.3 |
Composition | 54.40% |
Loan Count | loan | 16 |
Hotel | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ | $ 25 |
Composition | 15.70% |
Loan Count | loan | 4 |
Industrial | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ | $ 26 |
Composition | 16.30% |
Loan Count | loan | 4 |
Retail | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ | $ 21.5 |
Composition | 13.60% |
Loan Count | loan | 4 |
Investments - Schedule of Loans
Investments - Schedule of Loans by Ratio (Details) $ in Millions | Sep. 30, 2022 USD ($) security loan |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ 158.8 |
Loan Count | loan | 28 |
Equal to or less than 50.0% | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ 35.6 |
Loan Count | security | 6 |
Greater than 50.0% to 55.0% | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ 9.1 |
Loan Count | security | 2 |
Greater than 55.0% to 60.0% | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ 42.6 |
Loan Count | security | 8 |
Greater than 60.0% to 70.0% | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ 71.5 |
Loan Count | security | 12 |
1.00 to 1.50 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ 10.4 |
Loan Count | security | 2 |
Greater than 1.5 to 2.0 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ 59.3 |
Loan Count | security | 10 |
Greater than 2.0 to 3.0 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ 52 |
Loan Count | security | 10 |
Greater than 3.0 to 4.0 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ 25.8 |
Loan Count | security | 4 |
Greater than 4.0 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ 11.3 |
Loan Count | security | 2 |
Investments - Schedule of Loa_2
Investments - Schedule of Loans by Maturity (Details) $ in Millions | Sep. 30, 2022 USD ($) security loan |
Investments, Debt and Equity Securities [Abstract] | |
Greater than One Year and Less than Three | $ 54.8 |
Greater than Three Years and Less than Five Years | 33.8 |
Greater than Five Years and Less than Seven Years | 20.4 |
Greater than Seven Years and Less than Ten Years | 49.8 |
Cost | $ 158.8 |
Greater than One Year and Less than Three | security | 10 |
Greater than Three Years and Less than Five Years | security | 6 |
Greater than Five Years and Less than Seven Years | security | 4 |
Greater than Seven Years and Less than Ten Years | security | 8 |
Loan Count | loan | 28 |
Investments - Schedule of Compa
Investments - Schedule of Company's Gross Realized Investment Gains (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Investments [Line Items] | ||||
Realized gains on fixed maturities and other: | $ 8.9 | $ 4.2 | $ 36.9 | $ 38.6 |
Realized losses on fixed maturities and other: | (15.6) | (5.1) | (65) | (35.6) |
Credit gains (losses) on fixed maturities | 1.3 | 0.8 | 2.9 | 1.5 |
Other | (1.4) | 0 | (55.1) | 0 |
Net (losses) recognized on fixed maturities and other | (37.1) | (0.7) | (94.2) | (1.5) |
Net realized gains (losses) on equity securities | 0.2 | 1.4 | 0.2 | 0.3 |
Change in unrealized gains (losses) on equity securities held at the end of the period | (1.1) | (5.1) | 2.5 | 30.7 |
Net gains (losses) on equity securities | (0.9) | (3.7) | 2.7 | 31 |
Net investment and other gains (losses) before income taxes | (44.7) | (5.3) | (119.6) | 32.5 |
Income tax (benefit) provision | (7) | 0 | (8.8) | 0 |
Net investment and other gains (losses), net of income taxes | (37.7) | (5.3) | (110.8) | 32.5 |
Fixed maturities | ||||
Schedule of Investments [Line Items] | ||||
Realized gains on fixed maturities and other: | 1.1 | 3.3 | 17 | 26.3 |
Realized losses on fixed maturities and other: | (3.5) | (0.4) | (24.9) | (5) |
Other investments | ||||
Schedule of Investments [Line Items] | ||||
Realized gains on fixed maturities and other: | 7.8 | 0.9 | 19.9 | 8.9 |
Realized losses on fixed maturities and other: | (12.1) | (3.3) | (40.1) | (16.6) |
Other assets | ||||
Schedule of Investments [Line Items] | ||||
Realized gains on fixed maturities and other: | 0 | 0 | 0 | 3.4 |
Realized losses on fixed maturities and other: | 0 | (1.4) | 0 | (14) |
Other than temporary impairment losses | ||||
Schedule of Investments [Line Items] | ||||
Credit gains (losses) on fixed maturities | (1.5) | (0.7) | (4.9) | (1.5) |
Impairment Related to Change in Intent | ||||
Schedule of Investments [Line Items] | ||||
Impairment related to change in intent | $ (34.2) | $ 0 | $ (34.2) | $ 0 |
Investments - Schedule of Chang
Investments - Schedule of Changes in Unrealized Appreciation (Depreciation) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Investments [Line Items] | ||||
Net unrealized investment gains (losses) before income taxes | $ (90.1) | $ (23.3) | $ (417.9) | $ (71.3) |
Income tax provision (benefit) | (14.2) | (4.4) | (77.3) | (13) |
Net unrealized investment gains (losses), net of income taxes | (75.9) | (18.9) | (340.6) | (58.3) |
Fixed maturities | ||||
Schedule of Investments [Line Items] | ||||
Net unrealized investment gains (losses) before income taxes | (88.9) | (23) | (417.6) | (70.7) |
Other and short-term investments | ||||
Schedule of Investments [Line Items] | ||||
Net unrealized investment gains (losses) before income taxes | $ (1.2) | $ (0.3) | $ (0.3) | $ (0.6) |
Investments - Schedule of Fair
Investments - Schedule of Fair Value of Foreign Currency Exchange Forward Contracts (Detail) - Foreign Currency Exchange Forward Contracts - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Foreign currency exchange, notional amount | $ 313.8 | $ 311.8 |
Foreign currency exchange, fair value | 0.4 | (0.6) |
Operational currency exposure | ||
Schedule of Investments [Line Items] | ||
Foreign currency exchange, notional amount | 288.8 | 276.3 |
Foreign currency exchange, fair value | (3.4) | (0.3) |
Asset manager investment exposure | ||
Schedule of Investments [Line Items] | ||
Foreign currency exchange, notional amount | 25 | 35.5 |
Foreign currency exchange, fair value | $ 3.8 | $ (0.3) |
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 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Investments [Line Items] | ||||
Gross realized investment gains | $ 7.8 | $ 7.9 | $ 19.8 | $ 22.9 |
Gross realized investment losses | (11.2) | (12.1) | (37.7) | (30.6) |
Net realized investment (losses) gains on foreign currency exchange forward contracts | (3.4) | (4.2) | (17.9) | (7.7) |
Operational currency exposure | ||||
Schedule of Investments [Line Items] | ||||
Gross realized investment gains | 4.7 | 0 | 12.5 | 7.1 |
Gross realized investment losses | (11.2) | (5.2) | (36.7) | (17.8) |
Asset manager investment exposure | ||||
Schedule of Investments [Line Items] | ||||
Gross realized investment gains | 3.1 | 1 | 7.3 | 2.8 |
Gross realized investment losses | 0 | 0 | (1) | (0.8) |
Total return strategy | ||||
Schedule of Investments [Line Items] | ||||
Gross realized investment gains | 0 | 6.9 | 0 | 13 |
Gross realized investment losses | $ 0 | $ (6.9) | $ 0 | $ (12) |
Investments - Components of Res
Investments - Components of Restricted Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Securities required to be maintained at Lloyd's | $ 257 | |
Asset Pledged as Collateral | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Restricted investments | 594 | $ 686.3 |
Asset Pledged as Collateral | Securities Deposits for Regulatory and Other Purposes | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Restricted investments | 158.5 | 195.6 |
Asset Pledged as Collateral | Letter of Credit | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Restricted investments | 178.5 | 193.9 |
Asset Pledged as Collateral | Deposits | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Restricted investments | 257 | $ 296.8 |
Argo Re | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Securities and cash on deposit supporting Lloyd's business | $ 134 |
Investments - Financial Assets
Investments - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | $ 4,905.1 | $ 5,322.6 |
Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 5,010.8 | |
Derivatives | 0.4 | |
Total assets | 4,424.5 | |
Derivatives | 0.6 | |
Total liabilities | 0.6 | |
Fair Value, Recurring | Fixed maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 3,730.3 | 4,223.3 |
Fair Value, Recurring | Fixed maturities | Collateralized Loan Obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 291.2 | 336.1 |
Fair Value, Recurring | Fixed maturities | U.S. Governments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 511.8 | 425 |
Fair Value, Recurring | Fixed maturities | Foreign Governments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 198.3 | 232.8 |
Fair Value, Recurring | Fixed maturities | Obligations of states and political subdivisions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 161 | 171.3 |
Fair Value, Recurring | Fixed maturities | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 1,676.9 | 1,983.3 |
Fair Value, Recurring | Fixed maturities | Commercial mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 345.8 | 418.7 |
Fair Value, Recurring | Fixed maturities | Residential mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 362.9 | 482.5 |
Fair Value, Recurring | Fixed maturities | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 182.4 | 173.6 |
Fair Value, Recurring | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 43.9 | 56.3 |
Fair Value, Recurring | Other investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 79.2 | 75.4 |
Fair Value, Recurring | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 570.7 | 655.8 |
Fair Value, Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 1,112.9 | |
Derivatives | 0 | |
Total assets | 1,104.7 | |
Derivatives | 0 | |
Total liabilities | 0 | |
Fair Value, Recurring | Level 1 | Fixed maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 507.5 | 417.4 |
Fair Value, Recurring | Level 1 | Fixed maturities | Collateralized Loan Obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Fixed maturities | U.S. Governments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 507.5 | 417.4 |
Fair Value, Recurring | Level 1 | Fixed maturities | Foreign Governments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Fixed maturities | Obligations of states and political subdivisions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Fixed maturities | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Fixed maturities | Commercial mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Fixed maturities | Residential mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Fixed maturities | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 26.9 | 41.6 |
Fair Value, Recurring | Level 1 | Other investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 570.3 | 653.9 |
Fair Value, Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 3,880.4 | |
Derivatives | 0.4 | |
Total assets | 3,261 | |
Derivatives | 0.6 | |
Total liabilities | 0.6 | |
Fair Value, Recurring | Level 2 | Fixed maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 3,181 | 3,803.1 |
Fair Value, Recurring | Level 2 | Fixed maturities | Collateralized Loan Obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 291.2 | 336.1 |
Fair Value, Recurring | Level 2 | Fixed maturities | U.S. Governments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 4.3 | 7.6 |
Fair Value, Recurring | Level 2 | Fixed maturities | Foreign Governments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 198.3 | 232.8 |
Fair Value, Recurring | Level 2 | Fixed maturities | Obligations of states and political subdivisions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 161 | 171.3 |
Fair Value, Recurring | Level 2 | Fixed maturities | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 1,654.3 | 1,980.5 |
Fair Value, Recurring | Level 2 | Fixed maturities | Commercial mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 345.8 | 418.7 |
Fair Value, Recurring | Level 2 | Fixed maturities | Residential mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 362.9 | 482.5 |
Fair Value, Recurring | Level 2 | Fixed maturities | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 163.2 | 173.6 |
Fair Value, Recurring | Level 2 | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 2 | Other investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 79.2 | 75.4 |
Fair Value, Recurring | Level 2 | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0.4 | 1.9 |
Fair Value, Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 17.5 | |
Derivatives | 0 | |
Total assets | 58.8 | |
Derivatives | 0 | |
Total liabilities | 0 | |
Fair Value, Recurring | Level 3 | Fixed maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 41.8 | 2.8 |
Fair Value, Recurring | Level 3 | Fixed maturities | Collateralized Loan Obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Fixed maturities | U.S. Governments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Fixed maturities | Foreign Governments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Fixed maturities | Obligations of states and political subdivisions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Fixed maturities | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 22.6 | 2.8 |
Fair Value, Recurring | Level 3 | Fixed maturities | Commercial mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Fixed maturities | Residential mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Fixed maturities | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 19.2 | 0 |
Fair Value, Recurring | Level 3 | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 17 | 14.7 |
Fair Value, Recurring | Level 3 | Other investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | $ 0 | $ 0 |
Investments - Schedule of Recon
Investments - Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3 (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 17.5 | $ 24.5 |
Transfers into Level 3 | 43.2 | 2.4 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | 0.3 | 4.2 |
Included in other comprehensive income | (2.9) | (0.8) |
Purchases | 2.5 | 1.3 |
Issuances | 0 | 0 |
Sales | (1.8) | (14.1) |
Settlements | 0 | 0 |
Ending balance | 58.8 | 17.5 |
Amount of total gains or losses for the year included in net income attributable to the change in unrealized gains or losses relating to assets still held at end of period | (3.6) | 0 |
Credit Financial | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 2.8 | 7 |
Transfers into Level 3 | 42.6 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | (0.3) | 0 |
Included in other comprehensive income | (2.9) | (0.8) |
Purchases | 1.4 | 0.1 |
Issuances | 0 | 0 |
Sales | (1.8) | (3.5) |
Settlements | 0 | 0 |
Ending balance | 41.8 | 2.8 |
Amount of total gains or losses for the year included in net income attributable to the change in unrealized gains or losses relating to assets still held at end of period | 0 | 0 |
Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 14.7 | 17.5 |
Transfers into Level 3 | 0.6 | 2.4 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | 0.6 | 4.2 |
Included in other comprehensive income | 0 | 0 |
Purchases | 1.1 | 1.2 |
Issuances | 0 | 0 |
Sales | 0 | (10.6) |
Settlements | 0 | 0 |
Ending balance | 17 | 14.7 |
Amount of total gains or losses for the year included in net income attributable to the change in unrealized gains or losses relating to assets still held at end of period | $ (3.6) | $ 0 |
Investments - Commercial Mortga
Investments - Commercial Mortgage Loans (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ 158.8 |
Fair Value | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cost | $ 152.7 |
Allowance for Credit Losses - P
Allowance for Credit Losses - Premiums Receivable (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Credit Loss [Abstract] | ||
Premiums receivable | $ 656.5 | $ 648.6 |
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, January 1, 2022 | 5.7 | |
Current period change for estimated uncollectible premiums | 0.2 | |
Write-offs of uncollectible premiums receivable | (1.8) | |
Balance, September 30, 2022 | 4.1 | |
Transferred due to divestitures | $ 1.5 |
Allowance for Credit Losses - R
Allowance for Credit Losses - Reinsurance Recoverables (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Credit Loss [Abstract] | ||
Reinsurance recoverables, net | $ 3,015.8 | $ 2,966.4 |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Balance, January 1, 2022 | 3.8 | |
Current period change for estimated uncollectible reinsurance | 0.7 | |
Write-offs of uncollectible reinsurance recoverables | 0 | |
Balance, September 30, 2022 | $ 4.5 |
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 | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Net reserves beginning of the year | $ 3,123.2 | $ 2,906.1 | |||
Losses and LAE incurred during current calendar year, net of reinsurance: | |||||
Current accident year | 826.8 | 884.9 | |||
Prior accident years | 31.6 | 6 | |||
Losses and LAE incurred during calendar year, net of reinsurance | $ 298.8 | $ 311.7 | 858.4 | 890.9 | |
Losses and LAE payments made during current calendar year, net of reinsurance: | |||||
Current accident year | 112 | 100.5 | |||
Prior accident years | 623.2 | 552.8 | |||
Losses and LAE payments made during current calendar year, net of reinsurance: | 735.2 | 653.3 | |||
Divestitures | (35.2) | 0 | |||
Loss portfolio transfer (for years of account 2019 and 2018) | (175.5) | 0 | |||
Net reserve ceded - reinsurance to close transaction for years of account 2017 and prior | 0 | 219.7 | |||
Change in participation interest | 32.2 | 12.5 | |||
Foreign exchange adjustments | (10.6) | (7.3) | |||
Net reserves - end of period | 3,057.3 | 2,929.2 | 3,057.3 | 2,929.2 | $ 3,123.2 |
Reinsurance recoverables on unpaid losses and LAE, end of period | 2,674.1 | 2,510.3 | 2,674.1 | 2,510.3 | |
Gross reserves - end of period | $ 5,731.4 | $ 5,439.5 | $ 5,731.4 | $ 5,439.5 | $ 5,595 |
Reserves for Losses and Loss _4
Reserves for Losses and Loss Adjustment Expenses - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Losses and loss adjustment expenses | $ 298.8 | $ 311.7 | $ 858.4 | $ 890.9 |
Hurricane | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Losses and loss adjustment expenses | $ 23.4 |
Reserves for Losses and Loss _5
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 | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items] | ||
Total (favorable) unfavorable prior-year development | $ 31.6 | $ 6 |
U.S. Operations | ||
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items] | ||
Total (favorable) unfavorable prior-year development | 27.9 | (0.7) |
International Operations | ||
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items] | ||
Total (favorable) unfavorable prior-year development | 0.8 | 0.1 |
Run-off Lines | ||
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items] | ||
Total (favorable) unfavorable prior-year development | $ 2.9 | $ 6.6 |
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 | Sep. 30, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | $ 451.5 | $ 455.5 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 440.3 | 470.3 |
Junior subordinated debentures | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 258.5 | 258.2 |
Junior subordinated debentures | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 257.6 | 264.8 |
Junior subordinated debentures | Trust preferred debentures | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 172.7 | 172.7 |
Junior subordinated debentures | Trust preferred debentures | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 168.2 | 172.9 |
Junior subordinated debentures | Subordinated debentures | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 85.8 | 85.5 |
Junior subordinated debentures | Subordinated debentures | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 89.4 | 91.9 |
Senior unsecured fixed rate notes | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 140.5 | 140.3 |
Senior unsecured fixed rate notes | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 131.6 | 148.4 |
Floating rate loan stock | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 52.5 | 57 |
Floating rate loan stock | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | $ 51.1 | $ 57.1 |
Disclosures about Fair Value _4
Disclosures about Fair Value of Financial Instruments - Summary of Fair Values Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | $ 440.3 | $ 470.3 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 131.6 | 148.4 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 308.7 | 321.9 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 0 | 0 |
Junior subordinated debentures | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 257.6 | 264.8 |
Junior subordinated debentures | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 0 | 0 |
Junior subordinated debentures | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 257.6 | 264.8 |
Junior subordinated debentures | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 0 | 0 |
Junior subordinated debentures | Trust preferred debentures | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 168.2 | 172.9 |
Junior subordinated debentures | Trust preferred debentures | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 0 | 0 |
Junior subordinated debentures | Trust preferred debentures | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 168.2 | 172.9 |
Junior subordinated debentures | Trust preferred debentures | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 0 | 0 |
Junior subordinated debentures | Subordinated debentures | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 89.4 | 91.9 |
Junior subordinated debentures | Subordinated debentures | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 0 | 0 |
Junior subordinated debentures | Subordinated debentures | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 89.4 | 91.9 |
Junior subordinated debentures | Subordinated debentures | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 0 | 0 |
Senior unsecured fixed rate notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 131.6 | 148.4 |
Senior unsecured fixed rate notes | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 131.6 | 148.4 |
Senior unsecured fixed rate notes | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 0 | 0 |
Senior unsecured fixed rate notes | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 0 | 0 |
Floating rate loan stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 51.1 | 57.1 |
Floating rate loan stock | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 0 | 0 |
Floating rate loan stock | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 51.1 | 57.1 |
Floating rate loan stock | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | $ 0 | $ 0 |
Shareholders' Equity (Detail)
Shareholders' Equity (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 15, 2022 USD ($) | Aug. 04, 2022 $ / shares | Sep. 15, 2021 USD ($) | Aug. 06, 2021 $ / shares | Sep. 30, 2022 USD ($) $ / shares | Sep. 30, 2021 $ / shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 $ / shares shares | Aug. 05, 2022 | Dec. 31, 2021 $ / shares | May 03, 2016 USD ($) | |
Class of Stock [Line Items] | |||||||||||
Dividend declared per common share (in dollars per share) | $ 0.31 | $ 0.31 | $ 0.31 | $ 0.31 | $ 0.93 | $ 0.93 | |||||
Payments of dividends | $ | $ (11.2) | $ (10.8) | |||||||||
Preferred shares par value (in dollars per share) | 1 | 1 | $ 1 | ||||||||
Liquidation preference (in dollars per share) | $ 25,000 | $ 25,000 | $ 25,000 | ||||||||
Fractional interest per one preference share | 0.001 | 0.001 | |||||||||
Depositary shares, dividends per share (in dollars per share) | 0.43750 | $ 0.43750 | |||||||||
Number of shares repurchased (in shares) | shares | 0 | 0 | |||||||||
Series A Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Payments of dividends | $ | $ (2.6) | $ (2.6) | |||||||||
Preferred stock, dividends declared (in dollars per share) | $ 437.50 | $ 437.50 | |||||||||
Preferred stock, dividend rate (in percentage) | 7% | 7% | |||||||||
Preferred shares par value (in dollars per share) | $ 1 | $ 1 | |||||||||
Liquidation preference (in dollars per share) | $ 25,000 | $ 25,000 | |||||||||
2016 Repurchase Authorization | |||||||||||
Class of Stock [Line Items] | |||||||||||
Total number of shares authorized for purchase | $ | $ 150 | ||||||||||
Remaining number of shares available under repurchase authorization | $ | $ 53.3 | $ 53.3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 1,735.2 | $ 1,857.8 |
Other comprehensive loss before reclassifications | (375.3) | (47.5) |
Amounts reclassified from accumulated other comprehensive loss | 65.1 | (9.1) |
Net current-period other comprehensive income (loss) | (310.2) | (56.6) |
Ending Balance | 1,324.9 | 1,887.6 |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (35.3) | (37.9) |
Other comprehensive loss before reclassifications | (1.4) | 0.2 |
Amounts reclassified from accumulated other comprehensive loss | 31.8 | 0 |
Net current-period other comprehensive income (loss) | 30.4 | 0.2 |
Ending Balance | (4.9) | (37.7) |
Unrealized Holding Gains (Losses) on Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 19.7 | 105.1 |
Other comprehensive loss before reclassifications | (373.9) | (49.2) |
Amounts reclassified from accumulated other comprehensive loss | 33.3 | (9.1) |
Net current-period other comprehensive income (loss) | (340.6) | (58.3) |
Ending Balance | (320.9) | 46.8 |
Defined Benefit Pension Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (7.1) | (8.6) |
Other comprehensive loss before reclassifications | 0 | 1.5 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current-period other comprehensive income (loss) | 0 | 1.5 |
Ending Balance | (7.1) | (7.1) |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (22.7) | 58.6 |
Ending Balance | $ (332.9) | $ 2 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Unrealized gains and losses on securities: | ||||
Net realized investment gains (losses) | $ 44.7 | $ 5.3 | $ 119.6 | $ (32.5) |
Income tax provision (benefit) | (4) | 5.8 | 21.1 | 16.1 |
Foreign currency exchange gains (losses) | 9.1 | 1.3 | 16.5 | (4.4) |
Net income (loss) | (48.8) | 22.4 | (66) | 122 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Unrealized gains and losses on securities: | ||||
Net income (loss) | 37.7 | 7.8 | 65.1 | (9.1) |
Unrealized Gains and Losses on Securities | Reclassification out of Accumulated Other Comprehensive Income | ||||
Unrealized gains and losses on securities: | ||||
Net realized investment gains (losses) | 47.5 | 8.2 | 42.1 | (11) |
Income tax provision (benefit) | (9.8) | (0.4) | (8.8) | 1.9 |
Foreign Currency Translation Adjustments | Reclassification out of Accumulated Other Comprehensive Income | ||||
Unrealized gains and losses on securities: | ||||
Foreign currency exchange gains (losses) | $ 0 | $ 0 | $ 31.8 | $ 0 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Net Income (Loss) Per Common Share on Basic and Diluted Basis (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ (48.8) | $ 22.4 | $ (66) | $ 122 |
Less: Preferred share dividends | 2.6 | 2.6 | 7.9 | 7.9 |
Net income (loss) attributable to common shareholders | (51.4) | 19.8 | (73.9) | 114.1 |
Net income (loss) attributable to common shareholders | $ (51.4) | $ 19.8 | $ (73.9) | $ 114.1 |
Weighted average common shares outstanding - basic (in shares) | 35,014,182 | 34,852,274 | 34,955,787 | 34,794,078 |
Effect of dilutive securities: | ||||
Equity compensation awards (in shares) | 0 | 181,976 | 0 | 265,888 |
Weighted average common shares outstanding - diluted (in shares) | 35,014,182 | 35,034,250 | 34,955,787 | 35,059,966 |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ (1.47) | $ 0.57 | $ (2.11) | $ 3.28 |
Diluted (in dollars per share) | $ (1.47) | $ 0.56 | $ (2.11) | $ 3.26 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Treasury shares (in shares) | 11,318,339 | 11,318,339 | 11,318,339 | 11,318,339 |
Equity compensation awards with anti-dilutive effect (in shares) | 9,049 | 26,422 | 96,973 | 49,796 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Interest Paid and Income Taxes Paid (Recovered) (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Supplemental Cash Flow [Line Items] | ||
Total interest paid | $ 17 | $ 16 |
Income taxes paid | 26.2 | 30.7 |
Income taxes recovered | (0.5) | (1.2) |
Income taxes paid, net | 25.7 | 29.5 |
Senior unsecured fixed rate notes | ||
Supplemental Cash Flow [Line Items] | ||
Total interest paid | 7 | 7 |
Junior subordinated debentures | ||
Supplemental Cash Flow [Line Items] | ||
Total interest paid | 9 | 7.5 |
Other indebtedness | ||
Supplemental Cash Flow [Line Items] | ||
Total interest paid | $ 1 | $ 1.5 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | May 31, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment arrangement, (expense) recouped | $ 3.2 | $ 1.4 | $ 6.5 | $ 4.3 | ||
Employee service share-based compensation, unrecognized compensation costs on non-vested awards | 13.2 | $ 13.2 | ||||
Granted (in shares) | 357,408 | |||||
Granted (in dollars per share) | $ 39.47 | |||||
Restricted Stock Units (RSUs) | Minimum | ||||||
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) | Maximum | ||||||
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 | |||||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment arrangement, (expense) recouped | 0.5 | $ 0.2 | $ (0.1) | $ 1.8 | ||
Employee service share-based compensation, unrecognized compensation costs on non-vested awards | 3.5 | $ 3.5 | ||||
Granted (in shares) | 124,464 | |||||
Granted (in dollars per share) | $ 41 | |||||
Performance Shares | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, award vesting period, years | 3 years | |||||
Performance Shares | Maximum | ||||||
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 Appreciation Rights (SARs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, award vesting period, years | 3 years | |||||
Share-based payment arrangement, (expense) recouped | (0.1) | |||||
Granted (in shares) | 135,000 | |||||
SARs weighted average exercise price (in dollars per share) | $ 43.80 | |||||
Granted (in dollars per share) | $ 8.28 | |||||
Unamortized expense | $ 1 | $ 1 | ||||
2019 Plan | ||||||
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) | 1,885,000 | |||||
Expiration period | 10 years |
Share-based Compensation - Summ
Share-based Compensation - Summary of Restricted Share Activity (Detail) - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 278,430 |
Granted (in shares) | shares | 357,408 |
Reclassed from performance shares (in shares) | shares | 14,373 |
Vested and issued (in shares) | shares | (153,391) |
Expired or forfeited (in shares) | shares | (118,339) |
Outstanding, ending balance (in shares) | shares | 378,481 |
Weighted-Average Grant Date Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 49.57 |
Granted (in dollars per share) | $ / shares | 39.47 |
Reclassed from performance shares (in dollars per share) | $ / shares | 32.61 |
Vested and issued (in dollars per share) | $ / shares | 47.02 |
Expired or forfeited (in dollars per share) | $ / shares | 43.48 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 42.33 |
Share-based Compensation - Su_2
Share-based Compensation - Summary of Performance Shares Activity (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Weighted-Average Grant Date Fair Value | |
Reclassed to restricted shares (in dollars per share) | $ / shares | $ 32.61 |
Performance Shares | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 200,564 |
Granted (in shares) | shares | 124,464 |
Reclassed to restricted shares (in shares) | shares | (14,373) |
Vested and issued (in shares) | shares | (3,275) |
Expired or forfeited (in shares) | shares | (176,128) |
Outstanding, ending balance (in shares) | shares | 131,252 |
Weighted-Average Grant Date Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 47.52 |
Granted (in dollars per share) | $ / shares | 41 |
Vested and issued (in dollars per share) | $ / shares | 61.05 |
Expired or forfeited (in dollars per share) | $ / shares | 44.75 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 46.34 |
Underwriting, Acquisition and_3
Underwriting, Acquisition and Insurance Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Underwriting, Acquisition and Insurance Expenses [Abstract] | ||||
Commissions | $ 72.7 | $ 88 | $ 211.9 | $ 236.2 |
Other underwriting and insurance expenses | 97.5 | 105.1 | 297.9 | 315.7 |
Total underwriting, acquisition and insurance expenses before deferral | 170.2 | 193.1 | 509.8 | 551.9 |
Net deferral of policy acquisition costs | (9.2) | (16) | (14.9) | (21.1) |
Total underwriting, acquisition and insurance expenses | $ 161 | $ 177.1 | $ 494.9 | $ 530.8 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Net operating losses carryback period | 2 years | |||
Capital losses carryback period | 3 years | |||
Change in valuation allowance | $ (1.3) | $ 0.8 | $ (6.7) | $ (1.1) |
Change in uncertain tax position liability | 0 | $ (0.4) | 0.6 | $ (2.3) |
Interest on income taxes expense | $ 0.1 | $ 0.2 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ (52.8) | $ 28.2 | $ (44.9) | $ 138.1 |
Effective Tax Rate | 7.60% | 20.60% | (47.00%) | 11.70% |
Bermuda | ||||
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ (11.3) | $ 7.2 | $ (60.3) | $ 14.5 |
Effective Tax Rate | 0% | 0% | 0% | 0% |
United States | ||||
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ (3.2) | $ 21.4 | $ 81.6 | $ 126.7 |
Effective Tax Rate | 46.30% | 26.80% | 20.70% | 20.70% |
United Kingdom | ||||
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ (37.6) | $ (6.1) | $ (23.9) | $ (14.9) |
Effective Tax Rate | 6.80% | (1.00%) | (16.20%) | 68.40% |
Brazil | ||||
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ 0 | $ 5.9 | $ (0.1) | $ 9.8 |
Effective Tax Rate | 0% | 0% | (422.40%) | 0% |
United Arab Emirates | ||||
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ 0.5 | $ 0.9 | $ 1.3 | $ 1.2 |
Effective Tax Rate | 0% | 0% | 0% | 0% |
Ireland | ||||
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ (1.3) | $ 0 | $ (39.3) | $ (0.1) |
Effective Tax Rate | 0% | 0% | 0% | 0% |
Italy | ||||
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ 0.1 | $ 0.2 | $ (0.1) | $ 1.4 |
Effective Tax Rate | (1.70%) | 0% | (46.40%) | 0% |
Malta | ||||
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ 0 | $ (1.3) | $ (4.1) | $ (0.4) |
Effective Tax Rate | 0% | 0% | 0% | 0% |
Switzerland | ||||
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ 0 | $ 0 | $ 0 | $ (0.1) |
Effective Tax Rate | 0% | 0% | 0% | 0% |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision at expected rate | $ (7.8) | $ 5.6 | $ 11.1 | $ 28.4 |
Tax effect of: | ||||
Nontaxable investment income | (0.1) | (0.1) | (0.3) | (0.4) |
Foreign exchange adjustments | 0 | 0.2 | 0.8 | (0.3) |
Goodwill and intangible assets | 5.5 | 0 | 5.5 | 0 |
Withholding taxes | 0 | 0 | 0 | 0.1 |
Sale of Brazil and Malta Operations | 0.1 | 0 | 6.6 | 0 |
Change in uncertain tax position liability | 0 | (0.4) | 0.6 | (2.3) |
Change in valuation allowance | (1.3) | 0.8 | (6.7) | (1.1) |
Impact of change in tax rate related to Finance Act 2021 | (0.4) | 0 | 0.9 | (7.4) |
Prior period adjustment | (0.5) | 0 | 0.3 | 0 |
Other | 0.5 | (0.3) | 2.3 | (0.9) |
Income tax provision (benefit) | $ (4) | $ 5.8 | $ 21.1 | $ 16.1 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual commitments related to its limited partnership investments (up to) | $ 116.3 |
Contractual commitments period (not to exceed) | 12 years |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 2 | |
Assets associated with trade capital providers | $ | $ 302.5 | $ 554.2 |
Segment Information - Revenue a
Segment Information - Revenue and Income (Loss) Before Income Taxes for Each Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Earned premiums | $ 455 | $ 487.5 | $ 1,389.9 | $ 1,423.9 |
Net investment income | 34 | 46.1 | 100.9 | 143.2 |
Net investment and other gains (losses) | (44.7) | (5.3) | (119.6) | 32.5 |
Total revenue | 444.3 | 528.3 | 1,371.2 | 1,599.6 |
(Loss) income before income taxes | (52.8) | 28.2 | (44.9) | 138.1 |
Foreign currency exchange gains (losses) | 9.1 | 1.3 | 16.5 | (4.4) |
Impairment of goodwill and intangible assets | (28.5) | 0 | (28.5) | 0 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
(Loss) income before income taxes | 30.6 | 43.2 | 140.2 | 140.2 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Net investment income | 0 | 3.7 | 0 | 10.5 |
(Loss) income before income taxes | (19.3) | (11) | (53.5) | (30.2) |
U.S. Operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums | 329.3 | 323.5 | 998.5 | 952.4 |
Net investment income | 23.1 | 29.2 | 68.7 | 91.7 |
(Loss) income before income taxes | 26.6 | 39.9 | 113.5 | 130.1 |
International Operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums | 125.2 | 163.9 | 390.7 | 471.1 |
Net investment income | 10.3 | 12.3 | 30.4 | 38.2 |
(Loss) income before income taxes | 3.3 | 6.9 | 28.6 | 14.6 |
Run-off Lines | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums | 0.5 | 0.1 | 0.7 | 0.4 |
Net investment income | 0.6 | 0.9 | 1.8 | 2.8 |
(Loss) income before income taxes | $ 0.7 | $ (3.6) | $ (1.9) | $ (4.5) |
Segment Information - Schedule
Segment Information - Schedule of Earned Premiums by Geographic Location (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total earned premiums | $ 455 | $ 487.5 | $ 1,389.9 | $ 1,423.9 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total earned premiums | 329.8 | 322.7 | 999.2 | 949.7 |
United Kingdom | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total earned premiums | 113.8 | 129.1 | 349.8 | 344.9 |
Bermuda | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total earned premiums | 11.4 | 10.3 | 28.8 | 46.1 |
Malta | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total earned premiums | 0 | 7.7 | 3.7 | 32.7 |
All other jurisdictions | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total earned premiums | $ 0 | $ 17.7 | $ 8.4 | $ 50.5 |
Segment Information - Identifia
Segment Information - Identifiable Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Identifiable assets | $ 9,858.7 | $ 10,317.8 |
Operating Segments | U.S. Operations | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Identifiable assets | 5,597.1 | 5,800.1 |
Operating Segments | International Operations | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Identifiable assets | 3,864.4 | 3,932.3 |
Operating Segments | Run-off Lines | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Identifiable assets | 266.1 | 314.7 |
Corporate and Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Identifiable assets | $ 131.1 | $ 270.7 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Nov. 09, 2022 | Aug. 08, 2022 | |
Subsequent Event [Line Items] | |||
Portfolio transfer reserves cover | $ 746 | ||
Forecast | |||
Subsequent Event [Line Items] | |||
Reduction to cash and investments | $ 630 | ||
Estimated after-tax expense | 100 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Reserves transferred on closing date | $ 509 | ||
Portfolio transfer reserves cover | 746 | ||
Cash and investments transferred | $ 630 | ||
Subsequent Event | Forecast | |||
Subsequent Event [Line Items] | |||
Increase in reinsurance recoverables | $ 509 |