Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 09, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-15259 | |
Entity Registrant Name | ARGO GROUP INTERNATIONAL HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-0214719 | |
Entity Address, Address Line One | 501 7th Avenue 7th Floor | |
Entity Address, City or Town | New York | |
Entity Address, Postal Zip Code | 10018 | |
Entity Address, State or Province | NY | |
City Area Code | 210 | |
Local Phone Number | 321-8400 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,256,638,730 | |
Entity Central Index Key | 0001091748 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
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 US, Inc. and The Guarantee With Respects 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 Preferred Stock, 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Investments: | ||
Fixed maturities available-for-sale, at fair value (cost: 2024 - $2,371.9, 2023 - $2,521.5; allowance for expected credit losses: 2024 - $0.5, 2023 - $0.2) | $ 2,403.6 | $ 2,585.4 |
Equity securities, at fair value (cost: 2024 - $28.5; 2023 - $11.7) | 56.2 | 10.7 |
Other investments (cost: 2024 - $292.7; 2023 - $311.0) | 292.7 | 311 |
Short-term investments, at fair value (cost: 2024 - $790.1; 2023 - $429.0) | 790.1 | 429.5 |
Total investments | 3,982.2 | 3,481.2 |
Cash, restricted cash and cash equivalents | 475.5 | 791.6 |
Accrued investment income | 23.3 | 20.4 |
Premiums receivable | 248.4 | 230.7 |
Reinsurance recoverables | 2,994.3 | 2,959.3 |
Other intangible assets, net of accumulated amortization | 159.8 | 180.6 |
Current income taxes receivable, net | 53.9 | 53.1 |
Deferred tax asset, net | 39 | 39.1 |
Deferred acquisition costs, net | 49.4 | 7.2 |
Ceded unearned premiums | 378.9 | 356 |
Operating lease right-of-use assets | 51 | 51.2 |
Other assets | 186.3 | 189.1 |
Value of business acquired, net of accumulated amortization | 78.3 | 143.6 |
Total assets | 8,720.3 | 8,503.1 |
Liabilities and Stockholders' Equity | ||
Reserves for losses and loss adjustment expenses | 5,516.9 | 5,544.5 |
Unearned premiums | 859.7 | 916.6 |
Accrued underwriting expenses and other liabilities | 154.7 | 73.9 |
Ceded reinsurance payable, net | 215.2 | 192.7 |
Funds held | 45.7 | 57.3 |
Senior unsecured fixed rate notes | 128.4 | 128 |
Junior subordinated debentures | 242.2 | 241.2 |
Operating lease liabilities | 51.9 | 51.4 |
Total liabilities | 7,214.7 | 7,205.6 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity: | ||
Series A Preferred stock and additional paid-in capital - $1.00 par, 30,000,000 shares authorized; 6,000 and 6,000 shares issued at June 30, 2024 and December 31, 2023, respectively; liquidation preference $25,000 | 137.1 | 137.1 |
Common stock - $1.00 par, 2,000,000,000 shares authorized; 1,256,638,730 and 1,056,638,730 shares issued at June 30, 2024 and December 31, 2023, respectively | 1,256.6 | 1,056.6 |
Additional paid-in capital | 51.1 | 51.1 |
Retained earnings | 33.9 | 0.9 |
Accumulated other comprehensive income, net of taxes | 26.9 | 51.8 |
Total stockholders' equity | 1,505.6 | 1,297.5 |
Total liabilities and stockholders' equity | 8,720.3 | 8,503.1 |
Mortgage Loans | ||
Investments: | ||
Mortgage loans (cost: 2024 - $228.1, 2023 - $144.8; allowance for expected credit losses: 2024 - $0.2, 2023 - $0.2) and Private loans (cost: 2024 - $212.4, 2023 - $— ; allowance for expected credit losses: 2024 - $0.7, 2023 - $—) | 227.9 | 144.6 |
Private Loans | ||
Investments: | ||
Mortgage loans (cost: 2024 - $228.1, 2023 - $144.8; allowance for expected credit losses: 2024 - $0.2, 2023 - $0.2) and Private loans (cost: 2024 - $212.4, 2023 - $— ; allowance for expected credit losses: 2024 - $0.7, 2023 - $—) | $ 211.7 | $ 0 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fixed maturities available-for-sale, at cost | $ 2,371.9 | $ 2,521.5 |
Fixed maturities, allowance for expected credit losses | 0.5 | 0.2 |
Loans, at cost | 228.1 | 144.8 |
Equity securities, cost | 28.5 | 11.7 |
Other investments, cost | 292.7 | 311 |
Short-term investments, cost | $ 790.1 | $ 429 |
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) | 2,000,000,000 | 2,000,000,000 |
Common shares, shares issued (in shares) | 1,256,638,730 | 1,056,638,730 |
Mortgage Loans | ||
Loans, Allowance for credit loss | $ 0.2 | $ 0.2 |
Loans, at cost | 228.1 | 144.8 |
Private Loans | ||
Loans, Allowance for credit loss | 0.7 | 0 |
Loans, at cost | $ 212.4 | $ 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Premiums and other revenue: | ||||
Net earned premiums | $ 289.9 | $ 329.9 | $ 603.6 | $ 719.8 |
Net investment income | 66 | 32.8 | 124.8 | 62.5 |
Net investment and other gains (losses): | ||||
Net realized investment and other (losses) gains | (1.6) | (4.4) | 5 | (28.4) |
Change in fair value recognized | 26.4 | 6 | 26.4 | 12.2 |
Change in allowance for credit losses on fixed maturity securities | 0 | 0 | (0.4) | (0.1) |
Total net investment and other gains (losses) | 24.8 | 1.6 | 31 | (16.3) |
Total revenue | 380.7 | 364.3 | 759.4 | 766 |
Expenses: | ||||
Losses and loss adjustment expenses | 226.7 | 241.4 | 446.7 | 526 |
Underwriting, acquisition and general expenses | 116.8 | 110.9 | 233.9 | 247.9 |
Non-operating expenses | 5.2 | 6.8 | 12.9 | 18.4 |
Interest expense | 11.1 | 8.2 | 19.8 | 16.7 |
Fee and other (income) expense, net | (0.1) | (0.1) | (0.1) | (0.5) |
Foreign currency exchange (gains) losses | 2.7 | 0.7 | 0.7 | 3.4 |
Total expenses | 362.4 | 367.9 | 713.9 | 811.9 |
Income (loss) before income taxes | 18.3 | (3.6) | 45.5 | (45.9) |
Income tax provision (benefit) | 5.6 | (5.8) | 7.2 | (14.3) |
Net income (loss) | 12.7 | 2.2 | 38.3 | (31.6) |
Dividends on Series A Preferred stock | 2.7 | 2.7 | 5.3 | 5.3 |
Net income (loss) attributable to common stockholders | 10 | (0.5) | 33 | (36.9) |
Net income (loss) attributable to common stockholders | $ 10 | $ (0.5) | $ 33 | $ (36.9) |
Net income (loss) attributable to common stockholders per share of common stock: | ||||
Basic (in dollars per share) | $ (0.01) | $ (1.05) | ||
Diluted (in dollars per share) | (0.01) | (1.05) | ||
Dividend declared per common share (in dollars per share) | $ 0 | $ 0 | ||
Weighted average common stock: | ||||
Basic (in shares) | 35,176,248 | 35,138,385 | ||
Diluted (in shares) | 35,176,248 | 35,138,385 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 12.7 | $ 2.2 | $ 38.3 | $ (31.6) |
Foreign currency translation: | ||||
Foreign currency translation adjustments | 0 | 0.1 | (0.1) | 0.5 |
Defined benefit pension plans: | ||||
Net gain arising during the period | 0 | 0 | 0 | 1 |
Fixed maturity securities: | ||||
Unrealized (losses) gains arising during the period | (11.4) | (13.2) | (25.2) | 20 |
Reclassification adjustment for losses (gains) included in net income | 0.1 | 3.7 | (6.4) | 25.9 |
Other comprehensive (loss) income before tax | (11.3) | (9.4) | (31.7) | 47.4 |
Defined benefit pension plans: | ||||
Net gain arising during the period | 0 | 0 | 0 | 0.2 |
Fixed maturity securities: | ||||
Unrealized (losses) gains arising during the period | (2.4) | (2.2) | (5.5) | 3 |
Reclassification adjustment for losses (gains) included in net income | 0 | 0.7 | (1.3) | 5.4 |
Income tax (benefit) provision related to other comprehensive income (loss) | (2.4) | (1.5) | (6.8) | 8.6 |
Other comprehensive (loss) income, net of tax | (8.9) | (7.9) | (24.9) | 38.8 |
Comprehensive income (loss) | $ 3.8 | $ (5.7) | $ 13.4 | $ 7.2 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Millions | Total | Preferred Stock and Additional Paid-in Capital | Common Stock | Additional Paid-In Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2022 | $ 1,232.9 | $ 144 | $ 46.4 | $ 1,395.4 | $ (455.1) | $ 407.3 | $ (305.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (31.6) | (31.6) | |||||
Other comprehensive (loss) income - change in fair value of fixed maturities, net of taxes | 37.5 | 37.5 | |||||
Other comprehensive income (loss), net of tax | 1.3 | 1.3 | |||||
Activity under stock incentive plans | (0.2) | 0.1 | (0.3) | ||||
Retirement of common stock (tax payments on equity compensation) | (0.8) | (0.8) | |||||
Employee stock purchase plan | 0.8 | 0.8 | |||||
Dividends on preferred stock and Series A Preferred stock | (5.3) | (5.3) | |||||
Cash dividend declared - common shares | 0.2 | 0.2 | |||||
Ending Balance at Jun. 30, 2023 | 1,234.8 | 144 | 46.5 | 1,395.1 | (455.1) | 370.6 | (266.3) |
Beginning Balance at Mar. 31, 2023 | 1,244.5 | 144 | 46.5 | 1,396.6 | (455.1) | 370.9 | (258.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 2.2 | 2.2 | |||||
Other comprehensive (loss) income - change in fair value of fixed maturities, net of taxes | (8) | (8) | |||||
Other comprehensive income (loss), net of tax | 0.1 | 0.1 | |||||
Activity under stock incentive plans | (1.9) | (1.9) | |||||
Employee stock purchase plan | 0.4 | 0.4 | |||||
Dividends on preferred stock and Series A Preferred stock | (2.7) | (2.7) | |||||
Cash dividend declared - common shares | 0.2 | 0.2 | |||||
Ending Balance at Jun. 30, 2023 | 1,234.8 | 144 | 46.5 | 1,395.1 | (455.1) | 370.6 | (266.3) |
Beginning Balance at Dec. 31, 2023 | 1,297.5 | 137.1 | 1,056.6 | 51.1 | 0 | 0.9 | 51.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 38.3 | 38.3 | |||||
Other comprehensive (loss) income - change in fair value of fixed maturities, net of taxes | (24.8) | (24.8) | |||||
Other comprehensive income (loss), net of tax | (0.1) | (0.1) | |||||
Dividends on preferred stock and Series A Preferred stock | (5.3) | (5.3) | |||||
Issuance of common stock | 200 | 200 | |||||
Ending Balance at Jun. 30, 2024 | 1,505.6 | 137.1 | 1,256.6 | 51.1 | 0 | 33.9 | 26.9 |
Beginning Balance at Mar. 31, 2024 | 1,404.5 | 137.1 | 1,156.6 | 51.1 | 0 | 23.9 | 35.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 12.7 | 12.7 | |||||
Other comprehensive (loss) income - change in fair value of fixed maturities, net of taxes | (8.9) | (8.9) | |||||
Dividends on preferred stock and Series A Preferred stock | (2.7) | (2.7) | |||||
Issuance of common stock | 100 | 100 | |||||
Ending Balance at Jun. 30, 2024 | $ 1,505.6 | $ 137.1 | $ 1,256.6 | $ 51.1 | $ 0 | $ 33.9 | $ 26.9 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividend declared per common share (in dollars per share) | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows provided by (used in) operating activities: | ||
Net income (loss) | $ 38.3 | $ (31.6) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Amortization and depreciation | 92.9 | 8.1 |
Share-based payments expense | 0 | (0.6) |
Deferred income tax expense (benefit), net | 8 | (11.8) |
Net investment and other (gains) losses | (31) | 16.3 |
Undistributed earnings from alternative investment portfolio | (11.5) | (3) |
Foreign currency exchange losses | 0.7 | 3.4 |
Change in: | ||
Accrued investment income | (2.9) | (0.5) |
Receivables | (52.7) | 682 |
Deferred acquisition costs | (42.2) | (6.2) |
Ceded unearned premiums | (22.9) | (40.3) |
Reserves for losses and loss adjustment expenses | 61.6 | (347) |
Unearned premiums | (53.8) | 5 |
Ceded reinsurance payable and funds held | 10.9 | (53.3) |
Income taxes | (0.8) | (0.9) |
Accrued underwriting expenses and other liabilities | (6.7) | (68.2) |
Other, net | (68.1) | (31.8) |
Cash (used in) provided by operating activities | (80.2) | 119.6 |
Cash flows provided by (used in) investing activities: | ||
Sales of fixed maturity investments | 107.4 | 18.2 |
Maturities and mandatory calls of fixed maturity investments | 278.3 | 90.5 |
Sales of equity securities | 2.8 | 10.6 |
Sales of other investments | 47.6 | 8.4 |
Purchases of fixed maturity investments | (205.1) | (11.3) |
Purchases of equity securities | (20.2) | 0 |
Purchases of other investments | (14.6) | (10.5) |
Change in short-term investments | (343.1) | (371.5) |
Settlements of foreign currency exchange forward contracts | 0.8 | 5.9 |
Proceeds from business divestitures, net of cash transferred | 0 | 54.3 |
Purchases of fixed assets, net | 0 | (1.6) |
Cash used in investing activities | (430.6) | (207) |
Cash flows provided by (used in) financing activities: | ||
Debt borrowings | 100 | 0 |
Repayment of debt | (100) | 0 |
Issuance of common stock | 200 | 0 |
Activity under stock incentive plans | 0 | 0.8 |
Payment of cash dividends to preferred stockholders | (5.3) | (5.3) |
Payment of cash dividends to common stockholders | 0 | 0.2 |
Cash provided by (used in) financing activities | 194.7 | (4.3) |
Net change in cash and restricted cash including balances classified as held-for-sale | (316.1) | (91.7) |
Net change in cash balances classified as held-for-sale | 0 | 70.8 |
Cash, restricted cash, and cash equivalents, beginning of period | 791.6 | 50.2 |
Cash, restricted cash, and cash equivalents, end of period | 475.5 | 29.3 |
Mortgage Loans | ||
Cash flows provided by (used in) investing activities: | ||
Proceeds from loans | 19.9 | 0 |
Purchase of loans | (102.1) | 0 |
Private Loans | ||
Cash flows provided by (used in) investing activities: | ||
Proceeds from loans | 1.9 | 0 |
Purchase of loans | $ (204.2) | $ 0 |
Business and Significant Accoun
Business and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Significant Accounting Policies | Business and Significant Accounting Policies The accompanying Condensed Consolidated Financial Statements of Argo Group International Holdings, Inc. 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. On November 16, 2023, we merged with Brookfield Reinsurance Ltd., which resulted in a change to Company’s ownership (the “Merger”). Brookfield Reinsurance Ltd. elected to push-down its purchase accounting, which resulted in the Company reflecting the fair market value of our assets and liabilities as of November 16, 2023, in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations. The application of push-down accounting created a new basis of accounting for all of our assets and liabilities. As such, the Company’s financial position, results of operations, and cash flows subsequent to the acquisition are not comparable with those prior to November 16, 2023, and therefore have been separated to indicate pre-acquisition and post-acquisition periods. The pre-acquisition period through November 15, 2023 is referred to as the Predecessor. The post-acquisition period, November 16, 2023 and forward, includes the impact of push-down accounting and is referred to as the Successor. 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 Condensed 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; fair value of investments and assessment of potential impairment, including the allowance for credit losses on fixed maturity securities; valuation of intangibles, including those identified as part of purchase accounting related to the Merger, and our deferred tax asset valuation allowance. Actual results could materially differ from those estimates. Certain financial information that is normally included in annual Condensed Consolidated 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 Condensed Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission ("SEC") (the “2023 Form 10-K”). The interim financial information as of, and for the three and six months ended, June 30, 2024 and 2023 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 material 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. Commutation of Riverstone Holdings Limited Reinsurance Agreement On June 2, 2024, the Company entered into a commutation with Riverstone Holdings Limited (part of the RiverStone International group) on its legacy assumed business from our former Malta operations, ArgoGlobal Holdings (Malta) Ltd., which was sold in 2022. This transaction had no material impact on our net income in the second quarter of 2024. As of June 30, 2024, the final consideration payable to Riverstone Holdings Limited is reflected in Accrued underwriting expenses and other liabilities on our Condensed Consolidated Balance Sheets, which was settled in July of 2024. 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”), for which the financial results are reported in our International segment. On February 2, 2023, the Seller completed the sale of the entire issued share capital of AUA. The Company received the total consideration of $161.3 million, which included cash proceeds of $130.7 million as base consideration and an additional $30.6 million which was placed in escrow by the Buyer related to certain reinsurance-related recoverables. The funds in escrow may be released to the Seller over a period of two years following the closing. At the end of the two-year escrow period, any remaining balance of the escrow will be returned to the Buyer. Since the sale of AUA, $13.1 million of the consideration placed in escrow was released to the Company. As a result of the sale, we realized a loss of $20.3 million in the first quarter of 2023, which is included as a component of Net realized investment and other gains (losses) in our Condensed Consolidated Statements of Income (Loss). This loss is due to the realization of unrealized investment losses, which was previously a component of accumulated other comprehensive income. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company evaluated recently issued accounting pronouncements and determined none are material to our results of operations or financial position reported herein. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments As a result of the push-down accounting due to the Merger, the amortized cost of our investments is based on the fair value as of November 16, 2023. 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: June 30, 2024 (in millions) Amortized Gross Gross Allowance for Credit Losses Fair Fixed maturities U.S. Governments $ 252.6 $ 0.7 $ — $ — $ 253.3 Foreign Governments 4.1 — — — 4.1 Obligations of states and political subdivisions 83.0 1.4 — — 84.4 Corporate bonds 1,260.2 15.3 1.7 0.5 1,273.3 Commercial mortgage-backed securities 261.9 8.6 0.3 — 270.2 Residential mortgage-backed securities 225.9 3.7 0.3 — 229.3 Asset-backed securities 122.4 2.0 0.1 — 124.3 Collateralized loan obligations 161.8 3.3 0.4 — 164.7 Total fixed maturities $ 2,371.9 $ 35.0 $ 2.8 $ 0.5 $ 2,403.6 December 31, 2023 (in millions) Amortized Gross Gross Allowance for Credit Losses Fair Fixed maturities U.S. Governments $ 357.7 $ 4.5 $ — $ — $ 362.2 Foreign Governments 27.9 2.6 — 0.2 30.3 Obligations of states and political subdivisions 92.4 2.0 — — 94.4 Corporate bonds 1,185.0 28.9 0.8 — 1,213.1 Commercial mortgage-backed securities 270.9 10.1 0.5 — 280.5 Residential mortgage-backed securities 235.2 13.6 — — 248.8 Asset-backed securities 140.4 1.7 0.1 — 142.0 Collateralized loan obligations 212.0 2.1 — — 214.1 Total fixed maturities $ 2,521.5 $ 65.5 $ 1.4 $ 0.2 $ 2,585.4 Contractual Maturity The amortized cost and fair values of fixed maturity investments as of June 30, 2024, by contractual maturity, were as follows: (in millions) Amortized Fair Due in one year or less $ 302.0 $ 302.5 Due after one year through five years 1,067.8 1,074.6 Due after five years through ten years 215.4 222.5 Due after ten years 14.7 15.4 Structured securities 772.0 788.6 Total $ 2,371.9 $ 2,403.6 The actual maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations. Other Invested Assets Details regarding the carrying value and unfunded investment commitments of Other investments as of June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 December 31, 2023 (in millions) Carrying Unfunded Carrying Unfunded Investment type Hedge funds $ 29.8 $ — $ 56.2 $ — Private equity 255.2 80.8 250.3 93.4 Other 7.7 9.3 4.5 — Total other investments $ 292.7 $ 90.1 $ 311.0 $ 93.4 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. • Other: Other includes participation in investment pools. Unrealized Losses and Other-than-temporary Impairments An aging of unrealized losses on our investments in fixed maturities is presented below: June 30, 2024 Less Than One Year One Year or Greater Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities U.S. Governments $ 103.2 $ — $ — $ — $ 103.2 $ — Obligations of states and political subdivisions 20.3 — — — 20.3 — Corporate bonds 252.7 1.7 — — 252.7 1.7 Commercial mortgage-backed securities 23.3 0.3 — — 23.3 0.3 Residential mortgage-backed securities 51.2 0.3 — — 51.2 0.3 Asset-backed securities 11.1 0.1 — — 11.1 0.1 Collateralized loan obligations 4.4 0.4 — — 4.4 0.4 Total fixed maturities $ 466.2 $ 2.8 $ — $ — $ 466.2 $ 2.8 December 31, 2023 Less Than One Year One Year or Greater Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities Foreign Governments $ 0.1 $ — $ — $ — $ 0.1 $ — Obligations of states and political subdivisions 0.5 — — — 0.5 — Corporate bonds 38.7 0.8 — — 38.7 0.8 Commercial mortgage-backed securities 32.2 0.5 — — 32.2 0.5 Residential mortgage-backed securities 2.9 — — — 2.9 — Asset-backed securities 11.4 0.1 — — 11.4 0.1 Collateralized loan obligations 21.4 — — — 21.4 — Total fixed maturities $ 107.2 $ 1.4 $ — $ — $ 107.2 $ 1.4 We hold a total of 1,197 fixed maturity securities, of which 277 were in an unrealized loss position for less than one year and none were in an unrealized loss position for a period of one year or greater as of June 30, 2024. The unrealized losses as of June 30, 2024 are primarily driven from interest rate movements. 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 Net investment and other gains (losses) . 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 six months ending June 30, 2024 and 2023, respectively: Successor (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, March 31, 2024 $ — $ — $ 0.2 $ — $ 0.2 Securities for which allowance was not previously recorded — — 0.2 — 0.2 Additional net increases (decreases) in existing allowance — — 0.1 — 0.1 Ending balance, June 30, 2024 $ — $ — $ 0.5 $ — $ 0.5 Predecessor (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, March 31, 2023 $ 0.8 $ 0.4 $ 1.4 $ 0.1 $ 2.7 Securities for which allowance was not previously recorded 0.1 — 0.5 — 0.6 Securities sold during the period — — (0.2) — (0.2) Additional net increases (decreases) in existing allowance 0.1 (0.4) (0.3) — (0.6) Ending balance, June 30, 2023 $ 1.0 $ — $ 1.4 $ 0.1 $ 2.5 Successor (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, January 1, 2024 $ 0.2 $ — $ — $ — $ 0.2 Securities for which allowance was not previously recorded — — 0.3 — 0.3 Additional net increases (decreases) in existing allowance (0.2) — 0.2 — — Ending balance, June 30, 2024 $ — $ — $ 0.5 $ — $ 0.5 Predecessor (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, January 1, 2023 $ 0.7 $ 0.4 $ 1.6 $ 0.1 $ 2.8 Securities for which allowance was not previously recorded 0.1 — 0.7 — 0.8 Securities sold during the period — — (0.4) — (0.4) Additional net increases (decreases) in existing allowance 0.2 (0.4) (0.5) — (0.7) Ending balance, June 30, 2023 $ 1.0 $ — $ 1.4 $ 0.1 $ 2.5 The change in allowance for credit losses on fixed maturity securities, included in Net investment and other gains (losses) in the Condensed Consolidated Statements of Income (Loss) was $0.4 million and $0.1 million for the six months ended June 30, 2024, and 2023, respectively. There were no change in allowance for credit losses on fixed maturity securities for the three months ended June 30, 2024, and 2023, respectively. For 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. Mortgage Loans Mortgage loan investments are composed of participation interests in a portfolio of commercial and residential mortgage loans. Loan collateral is diversified with regard to property type and geography. The following table presents loans by property type: June 30, 2024 (in millions) Cost Composition Loan Count Residential $ 7.4 3.2 % 3 Apartments 67.7 29.7 % 14 Hotel 12.5 5.5 % 2 Industrial 95.4 41.9 % 5 Office 25.4 11.1 % 1 Retail 19.7 8.6 % 4 Total $ 228.1 100.0 % 29 December 31, 2023 (in millions) Cost Composition Loan Count Apartments $ 76.1 52.6 % 16 Hotel 22.4 15.4 % 4 Industrial 26.0 18.0 % 4 Retail 20.3 14.0 % 4 Total $ 144.8 100.0 % 28 The following table presents our loans by Debt Service Coverage Ratio (“DSCR”): June 30, 2024 (in millions) Cost Loan Count Less than 1.00 $ 10.4 2 1.00 to 1.50 36.8 8 Greater than 1.5 to 2.0 123.7 8 Greater than 2.0 to 3.0 37.3 6 Greater than 3.0 to 4.0 12.5 2 Total $ 220.7 26 DSCR does not include residential mortgage loans. December 31, 2023 (in millions) Cost Loan Count Less than 1.00 $ 36.2 8 1.00 to 1.50 29.4 6 Greater than 1.5 to 2.0 30.9 6 Greater than 2.0 to 3.0 36.0 6 Greater than 3.0 to 4.0 12.3 2 Total $ 144.8 28 The following table presents loans by Loan To Value (“LTV”): June 30, 2024 (in millions) Cost Loan Count Greater than 50.0% to 55.0% $ 13.6 3 Greater than 55.0% to 60.0% 0.1 1 Greater than 60.0% to 70.0% 112.9 8 Greater than 70.0% 101.5 17 Total $ 228.1 29 December 31, 2023 (in millions) Cost Loan Count Equal to or less than 50.0% $ 12.3 2 Greater than 50.0% to 55.0% 9.1 2 Greater than 55.0% to 60.0% 18.9 4 Greater than 60.0% to 70.0% 37.3 6 Greater than 70.0% 67.2 14 Total $ 144.8 28 The following table presents loans by maturity: June 30, 2024 (in millions) Cost Loan Count One Year or Less $ 34.9 6 Greater than One Year and Less than Three 127.3 8 Greater than Three Years and Less than Five Years 18.7 6 Greater than Five Years and Less than Seven Years — — Greater than Seven Years and Less than Ten Years 47.2 9 Total $ 228.1 29 December 31, 2023 (in millions) Cost Loan Count One Year or Less $ 19.7 4 Greater than One Year and Less than Three 34.9 6 Greater than Three Years and Less than Five Years 32.4 6 Greater than Five Years and Less than Seven Years 17.2 4 Greater than Seven Years and Less than Ten Years 40.6 8 Total $ 144.8 28 Investment and Other Gains and Losses The following table presents our gross realized investment gains and losses: Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Realized gains on fixed maturities and other: Fixed maturities $ 0.7 $ 0.4 $ 7.5 $ 0.6 Other investments, including short-term investments 1.1 2.3 3.7 10.2 Total realized gains on fixed maturities and other 1.8 2.7 11.2 10.8 Realized losses on fixed maturities and other: Fixed maturities (0.3) (1.3) (0.6) (23.7) Other investments, including short-term investments (2.2) (1.0) (5.0) (6.8) Total realized losses on fixed maturities and other (2.5) (2.3) (5.6) (30.5) Other net losses recognized on fixed maturities and other: Credit losses on fixed maturities — — (0.5) (0.1) Impairment related to change in intent — (2.2) — (2.8) Other (2.3) — (2.3) (3.6) Total other net losses recognized on fixed maturities and other (2.3) (2.2) (2.8) (6.5) Equity securities: Net realized gains (losses) on equity securities (0.9) (2.6) (0.5) (2.3) Change in unrealized gains (losses) on equity securities held at the end of the period 28.7 6.0 28.7 12.2 Net gains (losses) on equity securities 27.8 3.4 28.2 9.9 Net investment and other gains (losses) before income taxes 24.8 1.6 31.0 (16.3) Income tax (benefit) provision 4.8 (0.2) 6.4 (5.3) Net investment and other gains (losses), net of income taxes $ 20.0 $ 1.8 $ 24.6 $ (11.0) The cost of securities sold is based on the specific identification method. Changes in unrealized gains (losses) related to fixed maturity investments are summarized as follows: Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Change in unrealized gains (losses) Fixed maturities $ (11.4) $ (9.2) $ (31.2) $ 46.4 Other and short-term investments 0.1 (0.3) (0.4) (0.5) Net unrealized investment gains (losses) before income taxes (11.3) (9.5) (31.6) 45.9 Income tax provision (benefit) (2.4) (1.5) (6.8) 8.4 Net unrealized investment gains (losses), net of income taxes $ (8.9) $ (8.0) $ (24.8) $ 37.5 Foreign Currency Exchange Forward Contracts We entered into foreign currency exchange forward contracts primarily to manage currency exposure from our non-USD insurance operations. The currency forward contracts were carried at fair value in our Condensed Consolidated Balance Sheets in Other assets at December 31, 2023. The Company did not have any foreign currency exchange forward contracts at June 30, 2024. 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 December 31, 2023 was as follows: As of December 31, 2023 (in millions) Notional Amount Fair Value Operational currency Open contracts in a gain position $ 75.4 $ 1.8 Open contracts in a loss position 43.3 (0.3) Net open contracts for operational currency $ 1.5 Asset manager investment exposure Open contracts in a loss position $ 45.8 $ (0.2) Net open contracts for asset manager investment exposure (0.2) Total $ 1.3 The following table presents our gross realized investment gains and losses on our foreign currency exchange forward contracts: Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Realized gains Operational currency exposure $ 1.6 $ 4.8 $ 2.8 $ 8.9 Asset manager investment exposure — 0.6 0.2 0.6 Gross realized investment gains 1.6 5.4 3.0 9.5 Realized losses Operational currency exposure (1.0) (3.7) (3.6) (6.7) Asset manager investment exposure (1.0) (0.4) — (0.7) Gross realized investment losses (2.0) (4.1) (3.6) (7.4) Net realized investment (losses) gains on foreign currency exchange forward contracts $ (0.4) $ 1.3 $ (0.6) $ 2.1 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 loss and loss expense reserves. The following table presents our components of restricted investments: As of (in millions) June 30, 2024 December 31, 2023 Securities on deposit for regulatory and other purposes $ 140.2 $ 153.4 Securities pledged as collateral for letters of credit 39.1 109.2 Total restricted investments $ 179.3 $ 262.6 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. Significant increases (decreases) in those inputs in isolation could result in a significantly lower (higher) fair value measurement. To validate the fair value of investments in the Company’s Condensed Consolidated 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 June 30, 2024 and December 31, 2023. A description of the valuation techniques we use to measure assets at fair value is as follows: Fixed Maturities (Available-for-Sale) Levels 1 and 2: • United States Treasury securities are typically valued using Level 1 inputs. For these securities, we obtain fair value measurements from third-party pricing services using quoted prices (unadjusted) in active markets at the reporting date. • United States Government agencies, non-U.S. Government securities, obligations of states and political subdivisions, credit securities and foreign denominated government and credit securities are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, yield curves, live trading levels, trade execution data, credit information and the security’s terms and conditions, among other things. • Asset and mortgage-backed securities and collateralized loan obligations are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. Fixed Maturities (Available-for-Sale) Level 3: We own term loans and asset-back securities that are valued using unobservable inputs. Equity Securities Level 1: 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. 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) June 30, Level 1 (1) Level 2 (2) Level 3 (3) Fixed maturities U.S. Governments $ 253.3 $ 251.2 $ 2.1 $ — Foreign Governments 4.1 — 4.1 — Obligations of states and political subdivisions 84.4 — 84.4 — Corporate bonds 1,273.3 — 1,250.7 22.6 Commercial mortgage-backed securities 270.2 — 270.2 — Residential mortgage-backed securities 229.3 — 229.3 — Asset-backed securities 124.3 — 111.5 12.8 Collateralized loan obligations 164.7 — 164.7 — Total fixed maturities 2,403.6 251.2 2,117.0 35.4 Equity securities 56.2 2.0 — 54.2 Other investments 3.4 — 0.2 3.2 Short-term investments 790.1 790.1 — — Derivatives 23.1 — 23.1 — Total assets $ 3,276.4 $ 1,043.3 $ 2,140.3 $ 92.8 (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 $ 362.2 $ 360.1 $ 2.1 $ — Foreign Governments 30.3 — 30.3 — Obligations of states and political subdivisions 94.4 — 94.4 — Corporate bonds 1,213.1 — 1,180.5 32.6 Commercial mortgage-backed securities 280.5 — 280.5 — Residential mortgage-backed securities 248.8 — 248.8 — Asset-backed securities 142.0 — 124.2 17.8 Collateralized loan obligations 214.1 — 214.1 — Total fixed maturities 2,585.4 360.1 2,174.9 50.4 Equity securities 10.7 4.3 — 6.4 Other investments 0.2 — 0.2 — Short-term investments 429.5 429.0 0.5 — Derivatives 1.3 — 1.3 — Total assets $ 3,027.1 $ 793.4 $ 2,176.9 $ 56.8 (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 Condensed Consolidated Balance Sheets as they primarily exclude Mortgage loans , Private loans , and Other investments . Our mortgage loans and private loans are accounted for using the amortized cost basis and other investments are accounted for under the equity-method of accounting, amortized cost basis, or 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) Fixed Maturities Equity Other Investments Total Beginning balance, January 1, 2024 $ 50.4 $ 6.4 $ — $ 56.8 Transfers into Level 3 0.7 — — 0.7 Transfers out of Level 3 (10.1) — — (10.1) Total gains or losses (realized/unrealized): Included in net income 1.1 27.9 — 29.0 Included in other comprehensive income (0.2) — — (0.2) Purchases, issuances, sales, and settlements: Purchases 1.1 20.1 3.2 24.4 Sales — (0.2) — (0.2) Settlements (7.6) — — (7.6) Ending balance, June 30, 2024 $ 35.4 $ 54.2 $ 3.2 $ 92.8 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 June 30, 2024 $ — $ 28.8 $ — $ 28.8 (in millions) Fixed Maturities Equity Total Beginning balance, January 1, 2023 $ 40.7 $ 15.5 $ 56.2 Transfers into Level 3 5.6 — 5.6 Transfers out of Level 3 (5.6) (7.6) (13.2) Total gains or losses (realized/unrealized): Included in net income (0.1) (0.4) (0.5) Included in other comprehensive loss 0.8 — 0.8 Purchases, issuances, sales, and settlements: Purchases 10.6 — 10.6 Sales (0.5) (1.1) (1.6) Settlements (1.1) — (1.1) Ending balance, December 31, 2023 $ 50.4 $ 6.4 $ 56.8 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 December 31, 2023 $ — $ (0.8) $ (0.8) At June 30, 2024 and December 31, 2023, 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 certain investments at cost, less an allowance for expected credit losses, on the Condensed Consolidated Balance Sheets. The fair value of the Company’s investments is estimated using a discounted cash flow analysis. Due to the level of unobservable inputs factored into the estimation of fair value, the valuation would be categorized as Level 3. The cost and estimated fair value of these investments were: As of June 30, 2024 December 31, 2023 (in millions) Cost Fair Value Cost Fair Value Mortgage loans $ 228.1 $ 232.5 $ 144.8 $ 148.8 Private loans 212.4 212.7 — — Total $ 440.5 $ 445.2 $ 144.8 $ 148.8 |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2024 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses Premiums receivable The following table presents the balances of premiums receivable, net of allowance for estimated uncollectible premiums, including expected lifetime credit losses and the changes in the allowance for the respective periods: (in millions) Premiums Receivable, Net of Allowance for Estimated Uncollectible Premiums Allowance for Estimated Uncollectible Premiums Successor Balance, December 31, 2023 $ 230.7 $ 3.0 Current period change for estimated uncollectible premiums 2.2 Write-offs of uncollectible premiums receivable (1.6) Balance, June 30, 2024 $ 248.4 $ 3.6 Predecessor Balance, December 31, 2022 $ 292.0 $ 4.7 Current period change for estimated uncollectible premiums 1.4 Balance, June 30, 2023 $ 311.9 $ 6.1 Reinsurance Recoverables The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, including expected credit losses and changes in the allowance for the respective periods: (in millions) Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance Allowance for Estimated Uncollectible Reinsurance Successor Balance, December 31, 2023 $ 2,959.3 $ — Balance, June 30, 2024 $ 2,994.3 $ — Predecessor Balance, December 31, 2022 $ 3,029.1 $ 4.7 Balance, June 30, 2023 $ 2,908.2 $ 4.7 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 | 6 Months Ended |
Jun. 30, 2024 | |
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”): Successor Predecessor (in millions) Six Months Ended Six Months Ended Net reserves - beginning of the year $ 2,747.1 $ 2,213.1 Add: Losses and LAE incurred during current calendar year, net of reinsurance: Current accident year 381.1 451.0 Prior accident years 65.6 75.0 Losses and LAE incurred during calendar year, net of reinsurance 446.7 526.0 Deduct: Losses and LAE payments made during current calendar year, net of reinsurance: Current accident year 23.2 58.3 Prior accident years 406.3 256.4 Losses and LAE payments made during current calendar year, net of reinsurance: 429.5 314.7 Add/(Deduct): Divestitures (1) — 24.4 Retroactive reinsurance (2) — 21.7 Deferred gain on U.S. loss portfolio transfer, net of amortization — (6.0) Total net reserve adjustments — 40.1 Foreign exchange adjustments (2.2) 3.5 Net reserves - end of period 2,762.1 2,468.0 Add: Reinsurance recoverables on unpaid losses and LAE, end of period 2,754.8 2,736.7 Gross reserves - end of period $ 5,516.9 $ 5,204.7 (1) For the six months ended June 30, 2023, the adjustment relates to the year-to-date activity of Syndicate 1200 and on reinsurance contracts with AUA subsidiaries. Refer to the sale of Argo Underwriting Agency Limited in Note 1, “Business and Significant Accounting Policies” for additional information. (2) In connection with the sale of AUA, the Company entered into two retroactive reinsurance agreements with AUA subsidiaries. Reserves for losses and LAE represent the estimated indemnity cost and related adjustment expenses necessary to investigate and settle claims. Such estimates are based upon individual case estimates for reported claims, estimates from ceding companies for reinsurance assumed and actuarial estimates for losses that have been incurred but not yet reported to the insurer. Any change in probable ultimate liabilities is reflected in current operating results. The impact from the unfavorable (favorable) development of prior accident years’ loss and LAE reserves on each reporting segment is presented below: Successor Predecessor (in millions) Six Months Ended Six Months Ended U.S. Operations $ 55.1 $ 65.1 International Operations 10.1 8.2 Run-off Lines 0.4 1.7 Total unfavorable (favorable) prior-year development $ 65.6 $ 75.0 The following describes the primary factors behind each segment’s net prior accident year loss reserve development for the six months ended June 30, 2024 and 2023: Six months ended June 30, 2024: • U.S. Operations: Net unfavorable development primarily related to movements on large individual surety claims in specialty lines along with the recognition of some higher-than-expected loss experience across a number of specialty and casualty lines. • International Operations : Net unfavorable development primarily related to our assumed business from our former Malta operations, ArgoGlobal Holdings (Malta) Ltd., which was sold in 2022. • Run-off Lines: Net unfavorable development primarily related to involuntary pools. Six months ended June 30, 2023: • U.S. Operations: Net unfavorable development primarily related to liability and professional lines partially offset by favorable development in specialty lines. The liability lines development was driven by businesses we have exited. The professional lines development was driven by movements on individual management liability claims. The favorable development in specialty lines was due to a lack of claim activity in surety business. • International Operations : Net unfavorable development primarily related to movements on claims in professional lines in Bermuda operations and specialty lines in Europe partially offset by favorable development in runoff Reinsurance lines. • Run-off Lines: Net unfavorable loss reserve development on prior accident years in other run-off lines. 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 | 6 Months Ended |
Jun. 30, 2024 | |
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, mortgage loan and private loan investments, 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 due to short-term nature. Debt. At June 30, 2024 and December 31, 2023, 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 for similar financial instruments being traded in active markets. 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 third-party providers for pricing these instruments and have determined that they 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 June 30, 2024 and December 31, 2023. 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 Level 2: • Our trust preferred debentures and subordinated debentures are typically valued using Level 2 inputs. For these securities, we obtain fair value measurements 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: June 30, 2024 December 31, 2023 (in millions) Carrying Fair Carrying Fair Junior subordinated debentures: Trust preferred debentures $ 161.4 $ 165.6 $ 160.8 $ 165.9 Subordinated debentures 80.8 83.3 80.4 83.3 Total junior subordinated debentures 242.2 248.9 241.2 249.2 Senior unsecured fixed rate notes 128.4 126.8 128.0 132.7 $ 370.6 $ 375.7 $ 369.2 $ 381.9 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) June 30, 2024 Level 1 (1) Level 2 (2) Level 3 (3) Junior subordinated debentures: Trust preferred debentures $ 165.6 $ — $ 165.6 $ — Subordinated debentures 83.3 — 83.3 — Total junior subordinated debentures 248.9 — 248.9 — Senior unsecured fixed rate notes 126.8 126.8 — — $ 375.7 $ 126.8 $ 248.9 $ — (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, 2023 Level 1 (1) Level 2 (2) Level 3 (3) Junior subordinated debentures: Trust preferred debentures $ 165.9 $ — $ 165.9 $ — Subordinated debentures 83.3 — 83.3 — Total junior subordinated debentures 249.2 — 249.2 — Senior unsecured fixed rate notes 132.7 132.7 — — $ 381.9 $ 132.7 $ 249.2 $ — (1) Quoted prices in active markets for identical assets (2) Significant other observable inputs (3) Significant unobservable inputs |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock As a result of the Merger, the Company’s authorized and outstanding share capital is owned by BNRE Triangle Acquisition Inc. For the first six months of 2024, the Company issued a total of 200.0 million shares of its common stock at par value for $200.0 million to BNRE Triangle Acquisition Inc. Preferred Stock Dividend On May 7, 2024, our Board of Directors declared a quarterly cash dividend in the amount of $437.50 per share on our 7.00% Resettable Fixed Rate Preferred Stock, Series A, par value of $1.00 per share, with a liquidation preference of $25,000 per share (the “Series A Preferred Stock”). Holders of depositary shares, each representing a 1/1,000th interest in a share of Series A Preferred Stock (the “Depositary Shares”), received $0.43750 per Depositary Share. On June 17, 2024, we paid $2.7 million to our stockholders of record, as of May 31, 2024, of the Series A Preferred Stock. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) A summary of changes in accumulated other comprehensive income (loss), net of taxes (where applicable) by component for the six months ended June 30, 2024 and 2023 is presented below: (in millions) Foreign Currency Translation Adjustments Unrealized Defined Benefit Pension Plans Total Balance, January 1, 2024 $ 0.1 $ 51.1 $ 0.6 $ 51.8 Other comprehensive income before reclassifications (0.1) (19.7) — (19.8) Amounts reclassified from accumulated other comprehensive loss — (5.1) — (5.1) Net current-period other comprehensive income (loss) (0.1) (24.8) — (24.9) Balance, June 30, 2024 $ — $ 26.3 $ 0.6 $ 26.9 (in millions) Foreign Currency Translation Adjustments Unrealized Defined Benefit Pension Plans Total Balance, January 1, 2023 $ (4.2) $ (293.1) $ (7.8) $ (305.1) Other comprehensive income before reclassifications 0.5 17.0 0.8 18.3 Amounts reclassified from accumulated other comprehensive loss — 20.5 — 20.5 Net current-period other comprehensive income 0.5 37.5 0.8 38.8 Balance, June 30, 2023 $ (3.7) $ (255.6) $ (7.0) $ (266.3) 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): Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Unrealized gains and losses on securities: Net realized investment and other gains (losses) $ (0.1) $ (3.7) $ 6.4 $ (25.9) Income tax provision (benefit) — 0.7 (1.3) 5.4 Total, net of taxes $ (0.1) $ (3.0) $ 5.1 $ (20.5) 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. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Interest paid and income taxes paid (recovered) were as follows: Successor Predecessor (in millions) Six Months Ended Six Months Ended Senior unsecured fixed rate notes $ 4.7 $ 4.7 Junior subordinated debentures 12.3 11.1 Other indebtedness 1.9 0.8 Total interest paid $ 18.9 $ 16.6 Income taxes paid $ 0.1 $ 0.2 Income taxes recovered — (0.1) Income taxes paid, net $ 0.1 $ 0.1 Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2024 excludes $3.3 million of noncash activity for a lease which commenced in 2024. The lease is reflected on our Condensed Consolidated Balance Sheets in Operating lease right-of-use assets and Operating lease liabilities . |
Underwriting, Acquisition and G
Underwriting, Acquisition and General Expenses | 6 Months Ended |
Jun. 30, 2024 | |
Underwriting, Acquisition and Insurance Expenses [Abstract] | |
Underwriting, Acquisition and General Expenses | Underwriting, Acquisition and General Expenses Underwriting, acquisition and general expenses were as follows: Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Commission expense $ 26.5 $ 40.4 $ 57.6 $ 97.9 Other underwriting and insurance expenses 64.5 70.2 132.4 156.2 Amortization of value of business acquired and other intangible assets 43.0 — 86.1 — Total 134.0 110.6 276.1 254.1 Net deferral of policy acquisition costs (17.2) 0.3 (42.2) (6.2) Total underwriting, acquisition and general expenses $ 116.8 $ 110.9 $ 233.9 $ 247.9 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company was incorporated under the laws of Bermuda until November 30, 2023. Under Bermuda law, the Company was not obligated to pay any tax in Bermuda based upon income or capital gains. We previously received an undertaking from the Supervisor of Insurance in Bermuda pursuant to the provisions of the Exempted Undertakings Tax Protection Act, 2011 which exempted 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. As of November 30, 2023, the Company redomiciled from Bermuda to the United States. In connection with redomiciling from Bermuda to the United States, the Company’s predecessor pre-tax loss and tax benefit is reported in Bermuda. Subsequent to redomiciling, the Company’s successor pre-tax income and tax provision is reported in the U.S. Separately, Argo Re has submitted an Internal Revenue Code Section 953(d) election to treat the entity as a U.S. taxpayer. The election is deemed retroactive to the period beginning January 1, 2023. Argo Re pre-tax loss for the predecessor period is reported in Bermuda. The retroactive U.S. tax benefit incurred for the predecessor period is reflected in purchase accounting. Argo Re pre-tax income and tax provision is reported in the United States for the successor period. On February 2, 2023, Argo International Holdings Limited, a wholly-owned U.K. subsidiary of the Company, sold AUA. See Note 1, “Business and Significant Accounting Policies” for additional information related to this transaction. The predecessor period includes activity of AUA until it was sold. Subsequent to the AUA sale, the Company retained one U.K. subsidiary that is subject to the tax laws of that country. Under current law, the subsidiary is taxed at the applicable corporate tax rates and files a separate U.K. income tax return. 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. Beginning January 1, 2024, our U.S. subsidiaries file a consolidated U.S. federal income tax return with BAMR US Holdings LLC, a subsidiary of Brookfield Reinsurance Ltd. We also have operations in Ireland and Italy which are subject to income taxes imposed by the jurisdiction in which they operate. Furthermore, we have an operation in Barbados which is not subject to income tax under the laws of that country. On August 16, 2022, U.S. legislation referred to as the Inflation Reduction Act of 2022 was enacted. This legislation enacted a new Corporate Alternative Minimum Tax (“CAMT”) and Excise Tax on Repurchases of Corporate Stock. The Company has determined as of the period ending June 30, 2024, that it is subject to CAMT. The recognition of applicable CAMT is reported on a consolidated basis with Brookfield Reinsurance Ltd. The Company is not subject to Excise Tax on Repurchases of Corporate Stock. 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 six months ended June 30, 2024 and 2023, pre-tax income (loss) attributable to our operations and the corresponding operations’ effective tax rates were as follows: Successor Predecessor Three Months Ended Three Months Ended (in millions) Pre-Tax Effective Pre-Tax Effective Bermuda $ — — % $ 3.6 — % United States 21.8 25.7 % (5.7) 95.9 % United Kingdom (2.3) — % (1.5) 18.9 % Italy (1.2) — % — (1) (2.7) % Pre-tax income (loss) $ 18.3 30.6 % $ (3.6) 158.8 % (1) Pre-tax income (loss) for the respective year was less than $0.1 million. Successor Predecessor Six Months Ended Six Months Ended (in millions) Pre-Tax Effective Pre-Tax Effective Bermuda $ — — % $ (11.5) — % United States 49.8 14.3 % (13.1) 53.1 % United Kingdom (2.3) — % (21.6) 34.3 % United Arab Emirates — — % 0.3 — % Italy (2.0) (1.9) % — (1) (338.5) % Pre-tax income (loss) $ 45.5 15.8 % $ (45.9) 31.0 % (1) Pre-tax income (loss) for the respective year was less than $0.1 million. A reconciliation of the difference between the provision (benefit) for income taxes and the expected tax provision (benefit) at the weighted average tax rate is as follows: Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Income tax provision (benefit) at expected rate $ 3.7 $ (1.5) $ 9.4 $ (6.9) Tax effect of: Nontaxable investment income (0.1) — (0.2) (0.1) Foreign exchange adjustments — — — (2.6) Base Erosion and Anti-Abuse Tax — (3.5) — (3.5) Withholding taxes — — — 0.1 Ireland Capital Loss 3.3 — 3.3 — U.S. state tax expense, net of federal income tax effect — (1.3) — (1.2) Change in uncertain tax position liability — 1.2 — 1.2 Change in valuation allowance (2.4) — (2.4) (0.1) Impact of change in tax rate related to Finance Act 2021 — — — (0.4) Prior period adjustment 1.1 — (3.4) (0.1) Other — (0.7) 0.5 (0.7) Income tax provision (benefit) $ 5.6 $ (5.8) $ 7.2 $ (14.3) 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. The valuation allowance for deferred tax assets decreased by $2.4 million for the three and six months ended June 30, 2024, primarily related to the following: $3.3 million decrease related to an Ireland Capital Loss due to dissolution and a $0.9 million increase related to limited net operating loss carryforwards incurred in the United Kingdom. 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 $39.0 million of our 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 the Company’s Condensed Consolidated Financial Statements. No change to the uncertain tax positions were recorded for federal or state income tax liability for the three and six months ended June 30, 2024. A net decrease of interest in the amount of $1.1 million has been recorded in the line item Interest expense in our Condensed Consolidated Statements of Income (Loss) for the six months ended June 30, 2024. A net decrease of penalty in the amount of $0.2 million has been recorded in the line item Underwriting, acquisition, and general expenses in our Consolidated Statements of Income (Loss) for the six months ended June 30, 2024. The Company did not incur interest and penalty for the three months ended June 30, 2024. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Actions Argo Group’s subsidiaries are parties to legal actions incidental to their business. As of June 30, 2024, management believes that the resolution of these matters would not materially affect our financial condition or results of operations. Federal Securities Class Action The Police & Fire Retirement System City of Detroit v. Argo Group International Holdings, Inc., et al., No. 22-cv-8971 (S.D.N.Y.) 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, the defendants made false and misleading statements concerning the Company’s reserves and underwriting standards. On January 18, 2023, U.S. District Judge Lewis A. Kaplan granted the Police and Fire Retirement System City of Detroit and the Oklahoma Law Enforcement Retirement System’s joint motion for appointment as lead plaintiff. On March 27, 2023, lead plaintiffs filed an amended class action complaint. On May 26, 2023, the defendants moved to dismiss the amended class action complaint. On July 13, 2023, lead plaintiffs filed an opposition to such motion, after which defendants filed a reply on August 14, 2023. Bermuda Appraisal Petitions In April 2023, appraisal petitions were filed in the Supreme Court of Bermuda (the “Court”) relating to the acquisition of the Company by Brookfield Reinsurance Ltd. for $30.00 per share (the “Transaction Price”) that closed on November 16, 2023. The petitions were filed by certain stockholders pursuant to Section 106(6) of the Bermuda Companies Act 1981 and are captioned Corbin Erisa Opportunity Fund, Ltd. v. Argo Group International Holdings, Ltd., Corbin Opportunity Fund, L.P. v. Argo Group International Holdings, Ltd., Fourworld Event Opportunities, LP v. Argo Group International Holdings, Ltd., Fourworld Global Opportunities Fund, Ltd. v. Argo Group International Holdings, Ltd., Fourworld Special Opportunities Fund, LLC v. Argo Group International Holdings, Ltd., and FW Deep Value Opportunities Fund I, LLC v. Argo Group International Holdings, Ltd. Section 106(6) permits a stockholder of a Bermuda corporation, such as the Company, to petition the Court for a determination of the fair value of the Company’s shares if they are not satisfied with the Transaction Price. On January 3, 2024, the Company filed a summons to stay the appraisal action pending judgment of the Judicial Committee of the Privy Council in the matter captioned “In re matter of Jardine Strategy Holdings Limited Case No: Civ/2022/14-31.” Hearings were held on July 9, 2024 and July 18, 2024. The Court is considering the stay application and will hand down a judgment in due course. The Company intends to continue to defend this matter vigorously. Contractual Commitments We have contractual commitments to invest up to $90.1 million related to our limited partnership investments at June 30, 2024, 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. Additionally, the Company has commitments to fund up to $43.3 million related to its investments in term loan and mortgage loan investments. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
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. Net investment and other gains (losses) 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: Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Revenue: Net earned premiums U.S. Operations $ 264.8 $ 311.2 $ 551.5 $ 636.8 International Operations 25.0 18.6 51.9 82.9 Run-off Lines 0.1 0.1 0.2 0.1 Total net earned premiums 289.9 329.9 603.6 719.8 Net investment income U.S. Operations 56.1 27.1 106.1 51.5 International Operations 8.0 5.0 15.2 9.6 Run-off Lines 1.9 0.7 3.5 1.4 Total net investment income 66.0 32.8 124.8 62.5 Net investment and other gains (losses) 24.8 1.6 31.0 (16.3) Total revenue $ 380.7 $ 364.3 $ 759.4 $ 766.0 Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Income (loss) before income taxes U.S. Operations $ (6.2) $ (4.6) $ 26.0 $ (9.2) International Operations 4.8 9.5 (3.0) 11.9 Run-off Lines 0.8 (0.3) 0.6 (1.0) Total segment income (loss) before income taxes (0.6) 4.6 23.6 1.7 Corporate and Other (3.2) (9.1) (8.4) (27.9) Net investment and other gains (losses) 24.8 1.6 31.0 (16.3) Foreign currency exchange gains (losses) (2.7) (0.7) (0.7) (3.4) Total income (loss) before income taxes $ 18.3 $ (3.6) $ 45.5 $ (45.9) The table below presents net earned premiums by geographic location for the three and six months ended June 30, 2024 and 2023. 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. Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended United States $ 264.9 $ 311.3 $ 551.7 $ 636.9 United Kingdom — — — 48.3 Bermuda 25.0 18.6 51.9 34.6 Total earned premiums $ 289.9 $ 329.9 $ 603.6 $ 719.8 The following table represents identifiable assets: As of (in millions) June 30, 2024 December 31, 2023 U.S. Operations $ 6,649.8 $ 6,279.0 International Operations 1,728.0 1,888.9 Run-off Lines 223.5 221.4 Corporate and Other 119.0 113.8 Total assets $ 8,720.3 $ 8,503.1 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As part of the Merger, the Company has entered into recurring transactions and agreements with Brookfield Reinsurance Ltd., its subsidiaries and affiliates. For the three and six months ended June 30, 2024, the Company purchased related party investments of $219.2 million and $251.7 million, respectively. Additionally, during the second quarter of 2024, the Company recorded a gain of $27.9 million driven from a related party equity security, which is reflected in Net investment and other gains (losses) on our Condensed Consolidated Statements of Income (Loss). Related party investments as of June 30, 2024 were primarily attributed to $101.3 million of mortgage loans, and $126.6 million in private loans. Additionally, the Company has unfunded commitments totaling $52.6 million across the related party investments. Investment transactions with related parties are accounted for in the same manner as those with unrelated parties in the financial statements. For the three and six months ended June 30, 2024, the Company incurred investment management fees due to related party arrangements of $2.5 million and $4.8 million, which is recognized in Net investment income on our Condensed Consolidated Statements of Income (Loss). As of June 30, 2024, the related party investment management fees payable is $2.5 million which is recognized in Accrued underwriting expenses and other liabilities on our Condensed Consolidated Balance Sheets. Additionally, the Company issued common stock to BNRE Triangle Acquisition Inc. See Note 7, “Stockholders’ Equity,” for additional information. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events There are no subsequent events identified as of the date of this report. |
Business and Significant Acco_2
Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying Condensed Consolidated Financial Statements of Argo Group International Holdings, Inc. 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. On November 16, 2023, we merged with Brookfield Reinsurance Ltd., which resulted in a change to Company’s ownership (the “Merger”). Brookfield Reinsurance Ltd. elected to push-down its purchase accounting, which resulted in the Company reflecting the fair market value of our assets and liabilities as of November 16, 2023, in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations. The application of push-down accounting created a new basis of accounting for all of our assets and liabilities. As such, the Company’s financial position, results of operations, and cash flows subsequent to the acquisition are not comparable with those prior to November 16, 2023, and therefore have been separated to indicate pre-acquisition and post-acquisition periods. The pre-acquisition period through November 15, 2023 is referred to as the Predecessor. The post-acquisition period, November 16, 2023 and forward, includes the impact of push-down accounting and is referred to as the Successor. 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 Condensed 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; fair value of investments and assessment of potential impairment, including the allowance for credit losses on fixed maturity securities; valuation of intangibles, including those identified as part of purchase accounting related to the Merger, and our deferred tax asset valuation allowance. Actual results could materially differ from those estimates. Certain financial information that is normally included in annual Condensed Consolidated 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 Condensed Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission ("SEC") (the “2023 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 Net investment and other gains (losses) . 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, mortgage loan and private loan investments, 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 due to short-term nature. Debt. At June 30, 2024 and December 31, 2023, 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 for similar financial instruments being traded in active markets. 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 third-party providers for pricing these instruments and have determined that they 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 June 30, 2024 and December 31, 2023. 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 Level 2: • Our trust preferred debentures and subordinated debentures are typically valued using Level 2 inputs. For these securities, we obtain fair value measurements using quoted prices for similar securities being traded in active markets at the reporting date, as our specific debt instruments are less frequently traded. |
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. Significant increases (decreases) in those inputs in isolation could result in a significantly lower (higher) fair value measurement. To validate the fair value of investments in the Company’s Condensed Consolidated 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 June 30, 2024 and December 31, 2023. A description of the valuation techniques we use to measure assets at fair value is as follows: Fixed Maturities (Available-for-Sale) Levels 1 and 2: • United States Treasury securities are typically valued using Level 1 inputs. For these securities, we obtain fair value measurements from third-party pricing services using quoted prices (unadjusted) in active markets at the reporting date. • United States Government agencies, non-U.S. Government securities, obligations of states and political subdivisions, credit securities and foreign denominated government and credit securities are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, yield curves, live trading levels, trade execution data, credit information and the security’s terms and conditions, among other things. • Asset and mortgage-backed securities and collateralized loan obligations are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. Fixed Maturities (Available-for-Sale) Level 3: We own term loans and asset-back securities that are valued using unobservable inputs. Equity Securities Level 1: 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. 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) | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 (in millions) Amortized Gross Gross Allowance for Credit Losses Fair Fixed maturities U.S. Governments $ 252.6 $ 0.7 $ — $ — $ 253.3 Foreign Governments 4.1 — — — 4.1 Obligations of states and political subdivisions 83.0 1.4 — — 84.4 Corporate bonds 1,260.2 15.3 1.7 0.5 1,273.3 Commercial mortgage-backed securities 261.9 8.6 0.3 — 270.2 Residential mortgage-backed securities 225.9 3.7 0.3 — 229.3 Asset-backed securities 122.4 2.0 0.1 — 124.3 Collateralized loan obligations 161.8 3.3 0.4 — 164.7 Total fixed maturities $ 2,371.9 $ 35.0 $ 2.8 $ 0.5 $ 2,403.6 December 31, 2023 (in millions) Amortized Gross Gross Allowance for Credit Losses Fair Fixed maturities U.S. Governments $ 357.7 $ 4.5 $ — $ — $ 362.2 Foreign Governments 27.9 2.6 — 0.2 30.3 Obligations of states and political subdivisions 92.4 2.0 — — 94.4 Corporate bonds 1,185.0 28.9 0.8 — 1,213.1 Commercial mortgage-backed securities 270.9 10.1 0.5 — 280.5 Residential mortgage-backed securities 235.2 13.6 — — 248.8 Asset-backed securities 140.4 1.7 0.1 — 142.0 Collateralized loan obligations 212.0 2.1 — — 214.1 Total fixed maturities $ 2,521.5 $ 65.5 $ 1.4 $ 0.2 $ 2,585.4 |
Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity | The amortized cost and fair values of fixed maturity investments as of June 30, 2024, by contractual maturity, were as follows: (in millions) Amortized Fair Due in one year or less $ 302.0 $ 302.5 Due after one year through five years 1,067.8 1,074.6 Due after five years through ten years 215.4 222.5 Due after ten years 14.7 15.4 Structured securities 772.0 788.6 Total $ 2,371.9 $ 2,403.6 |
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 June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 December 31, 2023 (in millions) Carrying Unfunded Carrying Unfunded Investment type Hedge funds $ 29.8 $ — $ 56.2 $ — Private equity 255.2 80.8 250.3 93.4 Other 7.7 9.3 4.5 — Total other investments $ 292.7 $ 90.1 $ 311.0 $ 93.4 |
Schedule of Unrealized Gain (Loss) on Investments | An aging of unrealized losses on our investments in fixed maturities is presented below: June 30, 2024 Less Than One Year One Year or Greater Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities U.S. Governments $ 103.2 $ — $ — $ — $ 103.2 $ — Obligations of states and political subdivisions 20.3 — — — 20.3 — Corporate bonds 252.7 1.7 — — 252.7 1.7 Commercial mortgage-backed securities 23.3 0.3 — — 23.3 0.3 Residential mortgage-backed securities 51.2 0.3 — — 51.2 0.3 Asset-backed securities 11.1 0.1 — — 11.1 0.1 Collateralized loan obligations 4.4 0.4 — — 4.4 0.4 Total fixed maturities $ 466.2 $ 2.8 $ — $ — $ 466.2 $ 2.8 December 31, 2023 Less Than One Year One Year or Greater Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities Foreign Governments $ 0.1 $ — $ — $ — $ 0.1 $ — Obligations of states and political subdivisions 0.5 — — — 0.5 — Corporate bonds 38.7 0.8 — — 38.7 0.8 Commercial mortgage-backed securities 32.2 0.5 — — 32.2 0.5 Residential mortgage-backed securities 2.9 — — — 2.9 — Asset-backed securities 11.4 0.1 — — 11.4 0.1 Collateralized loan obligations 21.4 — — — 21.4 — Total fixed maturities $ 107.2 $ 1.4 $ — $ — $ 107.2 $ 1.4 |
Schedule of 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 six months ending June 30, 2024 and 2023, respectively: Successor (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, March 31, 2024 $ — $ — $ 0.2 $ — $ 0.2 Securities for which allowance was not previously recorded — — 0.2 — 0.2 Additional net increases (decreases) in existing allowance — — 0.1 — 0.1 Ending balance, June 30, 2024 $ — $ — $ 0.5 $ — $ 0.5 Predecessor (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, March 31, 2023 $ 0.8 $ 0.4 $ 1.4 $ 0.1 $ 2.7 Securities for which allowance was not previously recorded 0.1 — 0.5 — 0.6 Securities sold during the period — — (0.2) — (0.2) Additional net increases (decreases) in existing allowance 0.1 (0.4) (0.3) — (0.6) Ending balance, June 30, 2023 $ 1.0 $ — $ 1.4 $ 0.1 $ 2.5 Successor (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, January 1, 2024 $ 0.2 $ — $ — $ — $ 0.2 Securities for which allowance was not previously recorded — — 0.3 — 0.3 Additional net increases (decreases) in existing allowance (0.2) — 0.2 — — Ending balance, June 30, 2024 $ — $ — $ 0.5 $ — $ 0.5 Predecessor (in millions) Foreign Governments Obligations of states and political subdivisions Corporate bonds Asset backed securities Total Beginning balance, January 1, 2023 $ 0.7 $ 0.4 $ 1.6 $ 0.1 $ 2.8 Securities for which allowance was not previously recorded 0.1 — 0.7 — 0.8 Securities sold during the period — — (0.4) — (0.4) Additional net increases (decreases) in existing allowance 0.2 (0.4) (0.5) — (0.7) Ending balance, June 30, 2023 $ 1.0 $ — $ 1.4 $ 0.1 $ 2.5 |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table presents loans by property type: June 30, 2024 (in millions) Cost Composition Loan Count Residential $ 7.4 3.2 % 3 Apartments 67.7 29.7 % 14 Hotel 12.5 5.5 % 2 Industrial 95.4 41.9 % 5 Office 25.4 11.1 % 1 Retail 19.7 8.6 % 4 Total $ 228.1 100.0 % 29 December 31, 2023 (in millions) Cost Composition Loan Count Apartments $ 76.1 52.6 % 16 Hotel 22.4 15.4 % 4 Industrial 26.0 18.0 % 4 Retail 20.3 14.0 % 4 Total $ 144.8 100.0 % 28 |
Schedule of Financing Receivable Credit Quality Indicators | The following table presents our loans by Debt Service Coverage Ratio (“DSCR”): June 30, 2024 (in millions) Cost Loan Count Less than 1.00 $ 10.4 2 1.00 to 1.50 36.8 8 Greater than 1.5 to 2.0 123.7 8 Greater than 2.0 to 3.0 37.3 6 Greater than 3.0 to 4.0 12.5 2 Total $ 220.7 26 DSCR does not include residential mortgage loans. December 31, 2023 (in millions) Cost Loan Count Less than 1.00 $ 36.2 8 1.00 to 1.50 29.4 6 Greater than 1.5 to 2.0 30.9 6 Greater than 2.0 to 3.0 36.0 6 Greater than 3.0 to 4.0 12.3 2 Total $ 144.8 28 The following table presents loans by Loan To Value (“LTV”): June 30, 2024 (in millions) Cost Loan Count Greater than 50.0% to 55.0% $ 13.6 3 Greater than 55.0% to 60.0% 0.1 1 Greater than 60.0% to 70.0% 112.9 8 Greater than 70.0% 101.5 17 Total $ 228.1 29 December 31, 2023 (in millions) Cost Loan Count Equal to or less than 50.0% $ 12.3 2 Greater than 50.0% to 55.0% 9.1 2 Greater than 55.0% to 60.0% 18.9 4 Greater than 60.0% to 70.0% 37.3 6 Greater than 70.0% 67.2 14 Total $ 144.8 28 |
Schedule of Financing Receivable, before Allowance for Credit Loss, Maturity | The following table presents loans by maturity: June 30, 2024 (in millions) Cost Loan Count One Year or Less $ 34.9 6 Greater than One Year and Less than Three 127.3 8 Greater than Three Years and Less than Five Years 18.7 6 Greater than Five Years and Less than Seven Years — — Greater than Seven Years and Less than Ten Years 47.2 9 Total $ 228.1 29 December 31, 2023 (in millions) Cost Loan Count One Year or Less $ 19.7 4 Greater than One Year and Less than Three 34.9 6 Greater than Three Years and Less than Five Years 32.4 6 Greater than Five Years and Less than Seven Years 17.2 4 Greater than Seven Years and Less than Ten Years 40.6 8 Total $ 144.8 28 |
Schedule of Company's Investment and Other Gains and Losses | The following table presents our gross realized investment gains and losses: Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Realized gains on fixed maturities and other: Fixed maturities $ 0.7 $ 0.4 $ 7.5 $ 0.6 Other investments, including short-term investments 1.1 2.3 3.7 10.2 Total realized gains on fixed maturities and other 1.8 2.7 11.2 10.8 Realized losses on fixed maturities and other: Fixed maturities (0.3) (1.3) (0.6) (23.7) Other investments, including short-term investments (2.2) (1.0) (5.0) (6.8) Total realized losses on fixed maturities and other (2.5) (2.3) (5.6) (30.5) Other net losses recognized on fixed maturities and other: Credit losses on fixed maturities — — (0.5) (0.1) Impairment related to change in intent — (2.2) — (2.8) Other (2.3) — (2.3) (3.6) Total other net losses recognized on fixed maturities and other (2.3) (2.2) (2.8) (6.5) Equity securities: Net realized gains (losses) on equity securities (0.9) (2.6) (0.5) (2.3) Change in unrealized gains (losses) on equity securities held at the end of the period 28.7 6.0 28.7 12.2 Net gains (losses) on equity securities 27.8 3.4 28.2 9.9 Net investment and other gains (losses) before income taxes 24.8 1.6 31.0 (16.3) Income tax (benefit) provision 4.8 (0.2) 6.4 (5.3) Net investment and other gains (losses), net of income taxes $ 20.0 $ 1.8 $ 24.6 $ (11.0) |
Schedule of Changes in Unrealized Appreciation (Depreciation) | Changes in unrealized gains (losses) related to fixed maturity investments are summarized as follows: Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Change in unrealized gains (losses) Fixed maturities $ (11.4) $ (9.2) $ (31.2) $ 46.4 Other and short-term investments 0.1 (0.3) (0.4) (0.5) Net unrealized investment gains (losses) before income taxes (11.3) (9.5) (31.6) 45.9 Income tax provision (benefit) (2.4) (1.5) (6.8) 8.4 Net unrealized investment gains (losses), net of income taxes $ (8.9) $ (8.0) $ (24.8) $ 37.5 |
Schedule of Fair Value of Foreign Currency Exchange Forward Contracts | The fair value of our foreign currency exchange forward contracts as of December 31, 2023 was as follows: As of December 31, 2023 (in millions) Notional Amount Fair Value Operational currency Open contracts in a gain position $ 75.4 $ 1.8 Open contracts in a loss position 43.3 (0.3) Net open contracts for operational currency $ 1.5 Asset manager investment exposure Open contracts in a loss position $ 45.8 $ (0.2) Net open contracts for asset manager investment exposure (0.2) Total $ 1.3 |
Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts | The following table presents our gross realized investment gains and losses on our foreign currency exchange forward contracts: Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Realized gains Operational currency exposure $ 1.6 $ 4.8 $ 2.8 $ 8.9 Asset manager investment exposure — 0.6 0.2 0.6 Gross realized investment gains 1.6 5.4 3.0 9.5 Realized losses Operational currency exposure (1.0) (3.7) (3.6) (6.7) Asset manager investment exposure (1.0) (0.4) — (0.7) Gross realized investment losses (2.0) (4.1) (3.6) (7.4) Net realized investment (losses) gains on foreign currency exchange forward contracts $ (0.4) $ 1.3 $ (0.6) $ 2.1 |
Schedule of Restricted Assets | The following table presents our components of restricted investments: As of (in millions) June 30, 2024 December 31, 2023 Securities on deposit for regulatory and other purposes $ 140.2 $ 153.4 Securities pledged as collateral for letters of credit 39.1 109.2 Total restricted investments $ 179.3 $ 262.6 |
Schedule of 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) June 30, Level 1 (1) Level 2 (2) Level 3 (3) Fixed maturities U.S. Governments $ 253.3 $ 251.2 $ 2.1 $ — Foreign Governments 4.1 — 4.1 — Obligations of states and political subdivisions 84.4 — 84.4 — Corporate bonds 1,273.3 — 1,250.7 22.6 Commercial mortgage-backed securities 270.2 — 270.2 — Residential mortgage-backed securities 229.3 — 229.3 — Asset-backed securities 124.3 — 111.5 12.8 Collateralized loan obligations 164.7 — 164.7 — Total fixed maturities 2,403.6 251.2 2,117.0 35.4 Equity securities 56.2 2.0 — 54.2 Other investments 3.4 — 0.2 3.2 Short-term investments 790.1 790.1 — — Derivatives 23.1 — 23.1 — Total assets $ 3,276.4 $ 1,043.3 $ 2,140.3 $ 92.8 (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 $ 362.2 $ 360.1 $ 2.1 $ — Foreign Governments 30.3 — 30.3 — Obligations of states and political subdivisions 94.4 — 94.4 — Corporate bonds 1,213.1 — 1,180.5 32.6 Commercial mortgage-backed securities 280.5 — 280.5 — Residential mortgage-backed securities 248.8 — 248.8 — Asset-backed securities 142.0 — 124.2 17.8 Collateralized loan obligations 214.1 — 214.1 — Total fixed maturities 2,585.4 360.1 2,174.9 50.4 Equity securities 10.7 4.3 — 6.4 Other investments 0.2 — 0.2 — Short-term investments 429.5 429.0 0.5 — Derivatives 1.3 — 1.3 — Total assets $ 3,027.1 $ 793.4 $ 2,176.9 $ 56.8 (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) Fixed Maturities Equity Other Investments Total Beginning balance, January 1, 2024 $ 50.4 $ 6.4 $ — $ 56.8 Transfers into Level 3 0.7 — — 0.7 Transfers out of Level 3 (10.1) — — (10.1) Total gains or losses (realized/unrealized): Included in net income 1.1 27.9 — 29.0 Included in other comprehensive income (0.2) — — (0.2) Purchases, issuances, sales, and settlements: Purchases 1.1 20.1 3.2 24.4 Sales — (0.2) — (0.2) Settlements (7.6) — — (7.6) Ending balance, June 30, 2024 $ 35.4 $ 54.2 $ 3.2 $ 92.8 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 June 30, 2024 $ — $ 28.8 $ — $ 28.8 (in millions) Fixed Maturities Equity Total Beginning balance, January 1, 2023 $ 40.7 $ 15.5 $ 56.2 Transfers into Level 3 5.6 — 5.6 Transfers out of Level 3 (5.6) (7.6) (13.2) Total gains or losses (realized/unrealized): Included in net income (0.1) (0.4) (0.5) Included in other comprehensive loss 0.8 — 0.8 Purchases, issuances, sales, and settlements: Purchases 10.6 — 10.6 Sales (0.5) (1.1) (1.6) Settlements (1.1) — (1.1) Ending balance, December 31, 2023 $ 50.4 $ 6.4 $ 56.8 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 December 31, 2023 $ — $ (0.8) $ (0.8) |
Schedule of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value | The Company holds certain investments at cost, less an allowance for expected credit losses, on the Condensed Consolidated Balance Sheets. The fair value of the Company’s investments is estimated using a discounted cash flow analysis. Due to the level of unobservable inputs factored into the estimation of fair value, the valuation would be categorized as Level 3. The cost and estimated fair value of these investments were: As of June 30, 2024 December 31, 2023 (in millions) Cost Fair Value Cost Fair Value Mortgage loans $ 228.1 $ 232.5 $ 144.8 $ 148.8 Private loans 212.4 212.7 — — Total $ 440.5 $ 445.2 $ 144.8 $ 148.8 A summary of our financial instruments whose carrying value did not equal fair value is shown below: June 30, 2024 December 31, 2023 (in millions) Carrying Fair Carrying Fair Junior subordinated debentures: Trust preferred debentures $ 161.4 $ 165.6 $ 160.8 $ 165.9 Subordinated debentures 80.8 83.3 80.4 83.3 Total junior subordinated debentures 242.2 248.9 241.2 249.2 Senior unsecured fixed rate notes 128.4 126.8 128.0 132.7 $ 370.6 $ 375.7 $ 369.2 $ 381.9 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Credit Loss [Abstract] | |
Schedule of Premium Receivable, Allowance for Credit Loss | The following table presents the balances of premiums receivable, net of allowance for estimated uncollectible premiums, including expected lifetime credit losses and the changes in the allowance for the respective periods: (in millions) Premiums Receivable, Net of Allowance for Estimated Uncollectible Premiums Allowance for Estimated Uncollectible Premiums Successor Balance, December 31, 2023 $ 230.7 $ 3.0 Current period change for estimated uncollectible premiums 2.2 Write-offs of uncollectible premiums receivable (1.6) Balance, June 30, 2024 $ 248.4 $ 3.6 Predecessor Balance, December 31, 2022 $ 292.0 $ 4.7 Current period change for estimated uncollectible premiums 1.4 Balance, June 30, 2023 $ 311.9 $ 6.1 |
Schedule of 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, including expected credit losses and changes in the allowance for the respective periods: (in millions) Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance Allowance for Estimated Uncollectible Reinsurance Successor Balance, December 31, 2023 $ 2,959.3 $ — Balance, June 30, 2024 $ 2,994.3 $ — Predecessor Balance, December 31, 2022 $ 3,029.1 $ 4.7 Balance, June 30, 2023 $ 2,908.2 $ 4.7 |
Reserves for Losses and Loss _2
Reserves for Losses and Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
Schedule of Reserves for Losses and Loss Adjustment Expenses | The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”): Successor Predecessor (in millions) Six Months Ended Six Months Ended Net reserves - beginning of the year $ 2,747.1 $ 2,213.1 Add: Losses and LAE incurred during current calendar year, net of reinsurance: Current accident year 381.1 451.0 Prior accident years 65.6 75.0 Losses and LAE incurred during calendar year, net of reinsurance 446.7 526.0 Deduct: Losses and LAE payments made during current calendar year, net of reinsurance: Current accident year 23.2 58.3 Prior accident years 406.3 256.4 Losses and LAE payments made during current calendar year, net of reinsurance: 429.5 314.7 Add/(Deduct): Divestitures (1) — 24.4 Retroactive reinsurance (2) — 21.7 Deferred gain on U.S. loss portfolio transfer, net of amortization — (6.0) Total net reserve adjustments — 40.1 Foreign exchange adjustments (2.2) 3.5 Net reserves - end of period 2,762.1 2,468.0 Add: Reinsurance recoverables on unpaid losses and LAE, end of period 2,754.8 2,736.7 Gross reserves - end of period $ 5,516.9 $ 5,204.7 (1) For the six months ended June 30, 2023, the adjustment relates to the year-to-date activity of Syndicate 1200 and on reinsurance contracts with AUA subsidiaries. Refer to the sale of Argo Underwriting Agency Limited in Note 1, “Business and Significant Accounting Policies” for additional information. (2) |
Schedule of Impact from (Favorable) Unfavorable Development of Prior Accident Years’ Loss and LAE Reserves on Each Reporting Segment | The impact from the unfavorable (favorable) development of prior accident years’ loss and LAE reserves on each reporting segment is presented below: Successor Predecessor (in millions) Six Months Ended Six Months Ended U.S. Operations $ 55.1 $ 65.1 International Operations 10.1 8.2 Run-off Lines 0.4 1.7 Total unfavorable (favorable) prior-year development $ 65.6 $ 75.0 |
Disclosures About Fair Value _2
Disclosures About Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value | The Company holds certain investments at cost, less an allowance for expected credit losses, on the Condensed Consolidated Balance Sheets. The fair value of the Company’s investments is estimated using a discounted cash flow analysis. Due to the level of unobservable inputs factored into the estimation of fair value, the valuation would be categorized as Level 3. The cost and estimated fair value of these investments were: As of June 30, 2024 December 31, 2023 (in millions) Cost Fair Value Cost Fair Value Mortgage loans $ 228.1 $ 232.5 $ 144.8 $ 148.8 Private loans 212.4 212.7 — — Total $ 440.5 $ 445.2 $ 144.8 $ 148.8 A summary of our financial instruments whose carrying value did not equal fair value is shown below: June 30, 2024 December 31, 2023 (in millions) Carrying Fair Carrying Fair Junior subordinated debentures: Trust preferred debentures $ 161.4 $ 165.6 $ 160.8 $ 165.9 Subordinated debentures 80.8 83.3 80.4 83.3 Total junior subordinated debentures 242.2 248.9 241.2 249.2 Senior unsecured fixed rate notes 128.4 126.8 128.0 132.7 $ 370.6 $ 375.7 $ 369.2 $ 381.9 |
Schedule of 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) June 30, 2024 Level 1 (1) Level 2 (2) Level 3 (3) Junior subordinated debentures: Trust preferred debentures $ 165.6 $ — $ 165.6 $ — Subordinated debentures 83.3 — 83.3 — Total junior subordinated debentures 248.9 — 248.9 — Senior unsecured fixed rate notes 126.8 126.8 — — $ 375.7 $ 126.8 $ 248.9 $ — (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, 2023 Level 1 (1) Level 2 (2) Level 3 (3) Junior subordinated debentures: Trust preferred debentures $ 165.9 $ — $ 165.9 $ — Subordinated debentures 83.3 — 83.3 — Total junior subordinated debentures 249.2 — 249.2 — Senior unsecured fixed rate notes 132.7 132.7 — — $ 381.9 $ 132.7 $ 249.2 $ — (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) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive (Loss) Income | A summary of changes in accumulated other comprehensive income (loss), net of taxes (where applicable) by component for the six months ended June 30, 2024 and 2023 is presented below: (in millions) Foreign Currency Translation Adjustments Unrealized Defined Benefit Pension Plans Total Balance, January 1, 2024 $ 0.1 $ 51.1 $ 0.6 $ 51.8 Other comprehensive income before reclassifications (0.1) (19.7) — (19.8) Amounts reclassified from accumulated other comprehensive loss — (5.1) — (5.1) Net current-period other comprehensive income (loss) (0.1) (24.8) — (24.9) Balance, June 30, 2024 $ — $ 26.3 $ 0.6 $ 26.9 (in millions) Foreign Currency Translation Adjustments Unrealized Defined Benefit Pension Plans Total Balance, January 1, 2023 $ (4.2) $ (293.1) $ (7.8) $ (305.1) Other comprehensive income before reclassifications 0.5 17.0 0.8 18.3 Amounts reclassified from accumulated other comprehensive loss — 20.5 — 20.5 Net current-period other comprehensive income 0.5 37.5 0.8 38.8 Balance, June 30, 2023 $ (3.7) $ (255.6) $ (7.0) $ (266.3) |
Schedule of 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): Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Unrealized gains and losses on securities: Net realized investment and other gains (losses) $ (0.1) $ (3.7) $ 6.4 $ (25.9) Income tax provision (benefit) — 0.7 (1.3) 5.4 Total, net of taxes $ (0.1) $ (3.0) $ 5.1 $ (20.5) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Interest Paid and Income Taxes Paid (Recovered) | Interest paid and income taxes paid (recovered) were as follows: Successor Predecessor (in millions) Six Months Ended Six Months Ended Senior unsecured fixed rate notes $ 4.7 $ 4.7 Junior subordinated debentures 12.3 11.1 Other indebtedness 1.9 0.8 Total interest paid $ 18.9 $ 16.6 Income taxes paid $ 0.1 $ 0.2 Income taxes recovered — (0.1) Income taxes paid, net $ 0.1 $ 0.1 Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2024 excludes $3.3 million of noncash activity for a lease which commenced in 2024. The lease is reflected on our Condensed Consolidated Balance Sheets in Operating lease right-of-use assets and Operating lease liabilities . |
Underwriting, Acquisition and_2
Underwriting, Acquisition and General Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Underwriting, Acquisition and Insurance Expenses [Abstract] | |
Schedule of Underwriting, Acquisition and General Expenses | Underwriting, acquisition and general expenses were as follows: Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Commission expense $ 26.5 $ 40.4 $ 57.6 $ 97.9 Other underwriting and insurance expenses 64.5 70.2 132.4 156.2 Amortization of value of business acquired and other intangible assets 43.0 — 86.1 — Total 134.0 110.6 276.1 254.1 Net deferral of policy acquisition costs (17.2) 0.3 (42.2) (6.2) Total underwriting, acquisition and general expenses $ 116.8 $ 110.9 $ 233.9 $ 247.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates | For the three and six months ended June 30, 2024 and 2023, pre-tax income (loss) attributable to our operations and the corresponding operations’ effective tax rates were as follows: Successor Predecessor Three Months Ended Three Months Ended (in millions) Pre-Tax Effective Pre-Tax Effective Bermuda $ — — % $ 3.6 — % United States 21.8 25.7 % (5.7) 95.9 % United Kingdom (2.3) — % (1.5) 18.9 % Italy (1.2) — % — (1) (2.7) % Pre-tax income (loss) $ 18.3 30.6 % $ (3.6) 158.8 % (1) Pre-tax income (loss) for the respective year was less than $0.1 million. Successor Predecessor Six Months Ended Six Months Ended (in millions) Pre-Tax Effective Pre-Tax Effective Bermuda $ — — % $ (11.5) — % United States 49.8 14.3 % (13.1) 53.1 % United Kingdom (2.3) — % (21.6) 34.3 % United Arab Emirates — — % 0.3 — % Italy (2.0) (1.9) % — (1) (338.5) % Pre-tax income (loss) $ 45.5 15.8 % $ (45.9) 31.0 % (1) Pre-tax income (loss) for the respective year was less than $0.1 million. |
Schedule of 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 (benefit) for income taxes and the expected tax provision (benefit) at the weighted average tax rate is as follows: Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Income tax provision (benefit) at expected rate $ 3.7 $ (1.5) $ 9.4 $ (6.9) Tax effect of: Nontaxable investment income (0.1) — (0.2) (0.1) Foreign exchange adjustments — — — (2.6) Base Erosion and Anti-Abuse Tax — (3.5) — (3.5) Withholding taxes — — — 0.1 Ireland Capital Loss 3.3 — 3.3 — U.S. state tax expense, net of federal income tax effect — (1.3) — (1.2) Change in uncertain tax position liability — 1.2 — 1.2 Change in valuation allowance (2.4) — (2.4) (0.1) Impact of change in tax rate related to Finance Act 2021 — — — (0.4) Prior period adjustment 1.1 — (3.4) (0.1) Other — (0.7) 0.5 (0.7) Income tax provision (benefit) $ 5.6 $ (5.8) $ 7.2 $ (14.3) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Income (Loss) Before Income Taxes for Each Segment | Revenue and income (loss) before income taxes for each segment were as follows: Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Revenue: Net earned premiums U.S. Operations $ 264.8 $ 311.2 $ 551.5 $ 636.8 International Operations 25.0 18.6 51.9 82.9 Run-off Lines 0.1 0.1 0.2 0.1 Total net earned premiums 289.9 329.9 603.6 719.8 Net investment income U.S. Operations 56.1 27.1 106.1 51.5 International Operations 8.0 5.0 15.2 9.6 Run-off Lines 1.9 0.7 3.5 1.4 Total net investment income 66.0 32.8 124.8 62.5 Net investment and other gains (losses) 24.8 1.6 31.0 (16.3) Total revenue $ 380.7 $ 364.3 $ 759.4 $ 766.0 Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Income (loss) before income taxes U.S. Operations $ (6.2) $ (4.6) $ 26.0 $ (9.2) International Operations 4.8 9.5 (3.0) 11.9 Run-off Lines 0.8 (0.3) 0.6 (1.0) Total segment income (loss) before income taxes (0.6) 4.6 23.6 1.7 Corporate and Other (3.2) (9.1) (8.4) (27.9) Net investment and other gains (losses) 24.8 1.6 31.0 (16.3) Foreign currency exchange gains (losses) (2.7) (0.7) (0.7) (3.4) Total income (loss) before income taxes $ 18.3 $ (3.6) $ 45.5 $ (45.9) |
Schedule of Earned Premiums by Geographic Location | The table below presents net earned premiums by geographic location for the three and six months ended June 30, 2024 and 2023. 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. Successor Predecessor Successor Predecessor (in millions) Three Months Ended Three Months Ended Six Months Ended Six Months Ended United States $ 264.9 $ 311.3 $ 551.7 $ 636.9 United Kingdom — — — 48.3 Bermuda 25.0 18.6 51.9 34.6 Total earned premiums $ 289.9 $ 329.9 $ 603.6 $ 719.8 |
Schedule of Identifiable Assets | The following table represents identifiable assets: As of (in millions) June 30, 2024 December 31, 2023 U.S. Operations $ 6,649.8 $ 6,279.0 International Operations 1,728.0 1,888.9 Run-off Lines 223.5 221.4 Corporate and Other 119.0 113.8 Total assets $ 8,720.3 $ 8,503.1 |
Business and Significant Acco_3
Business and Significant Accounting Policies (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Argo Underwriting Agency Limited - USD ($) $ in Millions | 3 Months Ended | 17 Months Ended | |
Feb. 02, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash consideration received from sale | $ 161.3 | ||
Proceeds from sale of Trident assets | 130.7 | ||
Consideration placed in escrow | $ 30.6 | ||
Consideration placed in escrow, term | 2 years | ||
Consideration placed in escrow, | $ 13.1 | ||
Loss on disposal | $ 20.3 |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Fixed maturities | ||||||
Amortized Cost | $ 2,371.9 | $ 2,521.5 | ||||
Gross Unrealized Gains | 35 | 65.5 | ||||
Gross Unrealized Losses | 2.8 | 1.4 | ||||
Allowance for Credit Losses | 0.5 | $ 0.2 | 0.2 | $ 2.5 | $ 2.7 | $ 2.8 |
Fair Value | 2,403.6 | 2,585.4 | ||||
U.S. Governments | ||||||
Fixed maturities | ||||||
Amortized Cost | 252.6 | 357.7 | ||||
Gross Unrealized Gains | 0.7 | 4.5 | ||||
Gross Unrealized Losses | 0 | 0 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 253.3 | 362.2 | ||||
Foreign Governments | ||||||
Fixed maturities | ||||||
Amortized Cost | 4.1 | 27.9 | ||||
Gross Unrealized Gains | 0 | 2.6 | ||||
Gross Unrealized Losses | 0 | 0 | ||||
Allowance for Credit Losses | 0 | 0.2 | ||||
Fair Value | 4.1 | 30.3 | ||||
Obligations of states and political subdivisions | ||||||
Fixed maturities | ||||||
Amortized Cost | 83 | 92.4 | ||||
Gross Unrealized Gains | 1.4 | 2 | ||||
Gross Unrealized Losses | 0 | 0 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 84.4 | 94.4 | ||||
Corporate bonds | ||||||
Fixed maturities | ||||||
Amortized Cost | 1,260.2 | 1,185 | ||||
Gross Unrealized Gains | 15.3 | 28.9 | ||||
Gross Unrealized Losses | 1.7 | 0.8 | ||||
Allowance for Credit Losses | 0.5 | 0 | ||||
Fair Value | 1,273.3 | 1,213.1 | ||||
Commercial mortgage-backed securities | ||||||
Fixed maturities | ||||||
Amortized Cost | 261.9 | 270.9 | ||||
Gross Unrealized Gains | 8.6 | 10.1 | ||||
Gross Unrealized Losses | 0.3 | 0.5 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 270.2 | 280.5 | ||||
Residential mortgage-backed securities | ||||||
Fixed maturities | ||||||
Amortized Cost | 225.9 | 235.2 | ||||
Gross Unrealized Gains | 3.7 | 13.6 | ||||
Gross Unrealized Losses | 0.3 | 0 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 229.3 | 248.8 | ||||
Asset-backed securities | ||||||
Fixed maturities | ||||||
Amortized Cost | 122.4 | 140.4 | ||||
Gross Unrealized Gains | 2 | 1.7 | ||||
Gross Unrealized Losses | 0.1 | 0.1 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 124.3 | 142 | ||||
Collateralized loan obligations | ||||||
Fixed maturities | ||||||
Amortized Cost | 161.8 | 212 | ||||
Gross Unrealized Gains | 3.3 | 2.1 | ||||
Gross Unrealized Losses | 0.4 | 0 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | $ 164.7 | $ 214.1 |
Investments - Schedule of Amo_2
Investments - Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity (Detail) $ in Millions | Jun. 30, 2024 USD ($) |
Amortized Cost | |
Due in one year or less | $ 302 |
Due after one year through five years | 1,067.8 |
Due after five years through ten years | 215.4 |
Due after ten years | 14.7 |
Structured securities | 772 |
Total | 2,371.9 |
Fair Value | |
Due in one year or less | 302.5 |
Due after one year through five years | 1,074.6 |
Due after five years through ten years | 222.5 |
Due after ten years | 15.4 |
Structured securities | 788.6 |
Total | $ 2,403.6 |
Investments - Schedule of Carry
Investments - Schedule of Carrying Value and Unfunded Investment Commitments of Other Invested Assets Portfolio (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Investments [Line Items] | ||
Carrying Value | $ 3,982.2 | $ 3,481.2 |
Unfunded Commitments | 90.1 | 93.4 |
Hedge funds | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 29.8 | 56.2 |
Unfunded Commitments | 0 | 0 |
Private equity | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 255.2 | 250.3 |
Unfunded Commitments | 80.8 | 93.4 |
Other | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 7.7 | 4.5 |
Unfunded Commitments | 9.3 | 0 |
Other Investments | ||
Schedule of Investments [Line Items] | ||
Carrying Value | $ 292.7 | $ 311 |
Investments - Schedule of Aging
Investments - Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | $ 466.2 | $ 107.2 |
Unrealized Losses, Less Than One Year | 2.8 | 1.4 |
Fair Value, One Year or Greater | 0 | 0 |
Unrealized Losses, One Year or Greater | 0 | 0 |
Fair Value, Total | 466.2 | 107.2 |
Unrealized Losses, Total | 2.8 | 1.4 |
U.S. Governments | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 103.2 | |
Unrealized Losses, Less Than One Year | 0 | |
Fair Value, One Year or Greater | 0 | |
Unrealized Losses, One Year or Greater | 0 | |
Fair Value, Total | 103.2 | |
Unrealized Losses, Total | 0 | |
Foreign Governments | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 0.1 | |
Unrealized Losses, Less Than One Year | 0 | |
Fair Value, One Year or Greater | 0 | |
Unrealized Losses, One Year or Greater | 0 | |
Fair Value, Total | 0.1 | |
Unrealized Losses, Total | 0 | |
Obligations of states and political subdivisions | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 20.3 | 0.5 |
Unrealized Losses, Less Than One Year | 0 | 0 |
Fair Value, One Year or Greater | 0 | 0 |
Unrealized Losses, One Year or Greater | 0 | 0 |
Fair Value, Total | 20.3 | 0.5 |
Unrealized Losses, Total | 0 | 0 |
Corporate bonds | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 252.7 | 38.7 |
Unrealized Losses, Less Than One Year | 1.7 | 0.8 |
Fair Value, One Year or Greater | 0 | 0 |
Unrealized Losses, One Year or Greater | 0 | 0 |
Fair Value, Total | 252.7 | 38.7 |
Unrealized Losses, Total | 1.7 | 0.8 |
Commercial mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 23.3 | 32.2 |
Unrealized Losses, Less Than One Year | 0.3 | 0.5 |
Fair Value, One Year or Greater | 0 | 0 |
Unrealized Losses, One Year or Greater | 0 | 0 |
Fair Value, Total | 23.3 | 32.2 |
Unrealized Losses, Total | 0.3 | 0.5 |
Residential mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 51.2 | 2.9 |
Unrealized Losses, Less Than One Year | 0.3 | 0 |
Fair Value, One Year or Greater | 0 | 0 |
Unrealized Losses, One Year or Greater | 0 | 0 |
Fair Value, Total | 51.2 | 2.9 |
Unrealized Losses, Total | 0.3 | 0 |
Asset-backed securities | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 11.1 | 11.4 |
Unrealized Losses, Less Than One Year | 0.1 | 0.1 |
Fair Value, One Year or Greater | 0 | 0 |
Unrealized Losses, One Year or Greater | 0 | 0 |
Fair Value, Total | 11.1 | 11.4 |
Unrealized Losses, Total | 0.1 | 0.1 |
Collateralized loan obligations | ||
Schedule of Investments [Line Items] | ||
Fair Value, Less Than One Year | 4.4 | 21.4 |
Unrealized Losses, Less Than One Year | 0.4 | 0 |
Fair Value, One Year or Greater | 0 | 0 |
Unrealized Losses, One Year or Greater | 0 | 0 |
Fair Value, Total | 4.4 | 21.4 |
Unrealized Losses, Total | $ 0.4 | $ 0 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) security | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) security | Jun. 30, 2023 USD ($) | |
Investments, Debt and Equity Securities [Abstract] | ||||
Number of securities in an unrealized loss position, total | 1,197 | 1,197 | ||
Number of securities in an unrealized loss position for less than one year | 277 | 277 | ||
Number of securities in an unrealized loss position for a period of one year or greater | 0 | 0 | ||
Credit losses on fixed maturities | $ | $ 0 | $ 0 | $ 0.4 | $ 0.1 |
Investments - Schedule of Allow
Investments - Schedule of Allowance for Credit Losses (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 0.2 | $ 2.7 | $ 0.2 | $ 2.8 |
Securities for which allowance was not previously recorded | 0.2 | 0.6 | 0.3 | 0.8 |
Securities sold during the period | (0.2) | (0.4) | ||
Additional net increases (decreases) in existing allowance | 0.1 | (0.6) | 0 | (0.7) |
Ending balance | 0.5 | 2.5 | 0.5 | 2.5 |
Foreign Governments | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | 0.8 | 0.2 | 0.7 |
Securities for which allowance was not previously recorded | 0 | 0.1 | 0 | 0.1 |
Securities sold during the period | 0 | 0 | ||
Additional net increases (decreases) in existing allowance | 0 | 0.1 | (0.2) | 0.2 |
Ending balance | 0 | 1 | 0 | 1 |
Obligations of states and political subdivisions | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | 0.4 | 0 | 0.4 |
Securities for which allowance was not previously recorded | 0 | 0 | 0 | 0 |
Securities sold during the period | 0 | 0 | ||
Additional net increases (decreases) in existing allowance | 0 | (0.4) | 0 | (0.4) |
Ending balance | 0 | 0 | 0 | 0 |
Corporate bonds | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0.2 | 1.4 | 0 | 1.6 |
Securities for which allowance was not previously recorded | 0.2 | 0.5 | 0.3 | 0.7 |
Securities sold during the period | (0.2) | (0.4) | ||
Additional net increases (decreases) in existing allowance | 0.1 | (0.3) | 0.2 | (0.5) |
Ending balance | 0.5 | 1.4 | 0.5 | 1.4 |
Asset-backed securities | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | 0.1 | 0 | 0.1 |
Securities for which allowance was not previously recorded | 0 | 0 | 0 | 0 |
Securities sold during the period | 0 | 0 | ||
Additional net increases (decreases) in existing allowance | 0 | 0 | 0 | 0 |
Ending balance | $ 0 | $ 0.1 | $ 0 | $ 0.1 |
Investments - Schedule of Comme
Investments - Schedule of Commercial Mortgage Loans (Details) $ in Millions | Jun. 30, 2024 USD ($) loan | Dec. 31, 2023 USD ($) loan |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 228.1 | $ 144.8 |
Composition | 100% | 100% |
Loan Count | loan | 29 | 28 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 7.4 | |
Composition | 3.20% | |
Loan Count | loan | 3 | |
Apartments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 67.7 | $ 76.1 |
Composition | 29.70% | 52.60% |
Loan Count | loan | 14 | 16 |
Hotel | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 12.5 | $ 22.4 |
Composition | 5.50% | 15.40% |
Loan Count | loan | 2 | 4 |
Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 95.4 | $ 26 |
Composition | 41.90% | 18% |
Loan Count | loan | 5 | 4 |
Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 25.4 | |
Composition | 11.10% | |
Loan Count | loan | 1 | |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 19.7 | $ 20.3 |
Composition | 8.60% | 14% |
Loan Count | loan | 4 | 4 |
Investments - Schedule of Loans
Investments - Schedule of Loans by Ratio (Details) $ in Millions | Jun. 30, 2024 USD ($) loan | Dec. 31, 2023 USD ($) loan |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 228.1 | $ 144.8 |
Loan Count | loan | 29 | 28 |
Excluding Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 220.7 | |
Loan Count | loan | 26 | |
Equal to or less than 50.0% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 12.3 | |
Loan Count | loan | 2 | |
Greater than 50.0% to 55.0% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 13.6 | $ 9.1 |
Loan Count | loan | 3 | 2 |
Greater than 55.0% to 60.0% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 0.1 | $ 18.9 |
Loan Count | loan | 1 | 4 |
Greater than 60.0% to 70.0% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 112.9 | $ 37.3 |
Loan Count | loan | 8 | 6 |
Greater than 70.0% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 101.5 | $ 67.2 |
Loan Count | loan | 17 | 14 |
Less than 1.00 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 10.4 | $ 36.2 |
Loan Count | loan | 2 | 8 |
1.00 to 1.50 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 36.8 | $ 29.4 |
Loan Count | loan | 8 | 6 |
Greater than 1.5 to 2.0 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 123.7 | $ 30.9 |
Loan Count | loan | 8 | 6 |
Greater than 2.0 to 3.0 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 37.3 | $ 36 |
Loan Count | loan | 6 | 6 |
Greater than 3.0 to 4.0 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ | $ 12.5 | $ 12.3 |
Loan Count | loan | 2 | 2 |
Investments - Schedule of Loa_2
Investments - Schedule of Loans by Maturity (Details) $ in Millions | Jun. 30, 2024 USD ($) loan | Dec. 31, 2023 USD ($) loan |
Cost | ||
One Year or Less | $ | $ 34.9 | $ 19.7 |
Greater than One Year and Less than Three | $ | 127.3 | 34.9 |
Greater than Three Years and Less than Five Years | $ | 18.7 | 32.4 |
Greater than Five Years and Less than Seven Years | $ | 0 | 17.2 |
Greater than Seven Years and Less than Ten Years | $ | 47.2 | 40.6 |
Cost | $ | $ 228.1 | $ 144.8 |
Loan Count | ||
One Year or Less | loan | 6 | 4 |
Greater than One Year and Less than Three | loan | 8 | 6 |
Greater than Three Years and Less than Five Years | loan | 6 | 6 |
Greater than Five Years and Less than Seven Years | loan | 0 | 4 |
Greater than Seven Years and Less than Ten Years | loan | 9 | 8 |
Loan Count | loan | 29 | 28 |
Investments - Schedule of Compa
Investments - Schedule of Company's Gross Realized Investment Other Gains (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Investments [Line Items] | ||||
Realized gains on fixed maturities and other: | $ 1.8 | $ 2.7 | $ 11.2 | $ 10.8 |
Realized losses on fixed maturities and other: | (2.5) | (2.3) | (5.6) | (30.5) |
Credit losses on fixed maturities | 0 | 0 | 0.4 | 0.1 |
Other | (2.3) | 0 | (2.3) | (3.6) |
Total other net losses recognized on fixed maturities and other | (2.3) | (2.2) | (2.8) | (6.5) |
Net realized gains (losses) on equity securities | (0.9) | (2.6) | (0.5) | (2.3) |
Change in unrealized gains (losses) on equity securities held at the end of the period | 28.7 | 6 | 28.7 | 12.2 |
Net gains (losses) on equity securities | 27.8 | 3.4 | 28.2 | 9.9 |
Net investment and other gains (losses) before income taxes | 24.8 | 1.6 | 31 | (16.3) |
Income tax (benefit) provision | 4.8 | (0.2) | 6.4 | (5.3) |
Net investment and other gains (losses), net of income taxes | 20 | 1.8 | 24.6 | (11) |
Fixed maturities | ||||
Schedule of Investments [Line Items] | ||||
Realized gains on fixed maturities and other: | 0.7 | 0.4 | 7.5 | 0.6 |
Realized losses on fixed maturities and other: | (0.3) | (1.3) | (0.6) | (23.7) |
Other investments | ||||
Schedule of Investments [Line Items] | ||||
Realized gains on fixed maturities and other: | 1.1 | 2.3 | 3.7 | 10.2 |
Realized losses on fixed maturities and other: | (2.2) | (1) | (5) | (6.8) |
Other than temporary impairment losses | ||||
Schedule of Investments [Line Items] | ||||
Credit losses on fixed maturities | 0 | 0 | (0.5) | (0.1) |
Impairment Related to Change in Intent | ||||
Schedule of Investments [Line Items] | ||||
Impairment related to change in intent | $ 0 | $ (2.2) | $ 0 | $ (2.8) |
Investments - Schedule of Chang
Investments - Schedule of Changes in Unrealized Appreciation (Depreciation) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Investments [Line Items] | ||||
Net unrealized investment gains (losses) before income taxes | $ (11.3) | $ (9.5) | $ (31.6) | $ 45.9 |
Income tax provision (benefit) | (2.4) | (1.5) | (6.8) | 8.4 |
Net unrealized investment gains (losses), net of income taxes | (8.9) | (8) | (24.8) | 37.5 |
Fixed maturities | ||||
Schedule of Investments [Line Items] | ||||
Net unrealized investment gains (losses) before income taxes | (11.4) | (9.2) | (31.2) | 46.4 |
Other and short-term investments | ||||
Schedule of Investments [Line Items] | ||||
Net unrealized investment gains (losses) before income taxes | $ 0.1 | $ (0.3) | $ (0.4) | $ (0.5) |
Investments - Schedule of Fair
Investments - Schedule of Fair Value of Foreign Currency Exchange Forward Contracts (Detail) - Foreign Currency Exchange Forward Contracts $ in Millions | Dec. 31, 2023 USD ($) |
Schedule of Investments [Line Items] | |
Foreign currency exchange, fair value | $ 1.3 |
Operational currency | |
Schedule of Investments [Line Items] | |
Foreign currency exchange, fair value | 1.5 |
Open contracts in a gain position | |
Schedule of Investments [Line Items] | |
Foreign currency exchange, notional amount | 75.4 |
Foreign currency exchange, fair value | 1.8 |
Open contracts in a loss position | |
Schedule of Investments [Line Items] | |
Foreign currency exchange, notional amount | 43.3 |
Foreign currency exchange, fair value | (0.3) |
Asset manager investment exposure | |
Schedule of Investments [Line Items] | |
Foreign currency exchange, fair value | (0.2) |
Open contracts in a loss position | |
Schedule of Investments [Line Items] | |
Foreign currency exchange, notional amount | 45.8 |
Foreign currency exchange, fair value | $ (0.2) |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Investments [Line Items] | ||||
Gross realized investment gains | $ 1.6 | $ 5.4 | $ 3 | $ 9.5 |
Gross realized investment losses | (2) | (4.1) | (3.6) | (7.4) |
Net realized investment (losses) gains on foreign currency exchange forward contracts | (0.4) | 1.3 | (0.6) | 2.1 |
Operational currency | ||||
Schedule of Investments [Line Items] | ||||
Gross realized investment gains | 1.6 | 4.8 | 2.8 | 8.9 |
Gross realized investment losses | (1) | (3.7) | (3.6) | (6.7) |
Asset manager investment exposure | ||||
Schedule of Investments [Line Items] | ||||
Gross realized investment gains | 0 | 0.6 | 0.2 | 0.6 |
Gross realized investment losses | $ (1) | $ (0.4) | $ 0 | $ (0.7) |
Investments - Schedule of Compo
Investments - Schedule of Components of Restricted Assets (Detail) - Asset Pledged as Collateral - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Restricted investments | $ 179.3 | $ 262.6 |
Securities on deposit for regulatory and other purposes | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Restricted investments | 140.2 | 153.4 |
Securities pledged as collateral for letters of credit | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Restricted investments | $ 39.1 | $ 109.2 |
Investments - Schedule of Finan
Investments - Schedule of Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | $ 3,982.2 | $ 3,481.2 |
Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivatives | 23.1 | 1.3 |
Total assets | 3,276.4 | 3,027.1 |
Fair Value, Recurring | Fixed maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 2,403.6 | 2,585.4 |
Fair Value, Recurring | Fixed maturities | Collateralized Loan Obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 164.7 | 214.1 |
Fair Value, Recurring | Fixed maturities | U.S. Governments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 253.3 | 362.2 |
Fair Value, Recurring | Fixed maturities | Foreign Governments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 4.1 | 30.3 |
Fair Value, Recurring | Fixed maturities | Obligations of states and political subdivisions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 84.4 | 94.4 |
Fair Value, Recurring | Fixed maturities | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 1,273.3 | 1,213.1 |
Fair Value, Recurring | Fixed maturities | Commercial mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 270.2 | 280.5 |
Fair Value, Recurring | Fixed maturities | Residential mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 229.3 | 248.8 |
Fair Value, Recurring | Fixed maturities | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 124.3 | 142 |
Fair Value, Recurring | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 56.2 | 10.7 |
Fair Value, Recurring | Other investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 3.4 | 0.2 |
Fair Value, Recurring | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 790.1 | 429.5 |
Fair Value, Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivatives | 0 | 0 |
Total assets | 1,043.3 | 793.4 |
Fair Value, Recurring | Level 1 | Fixed maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 251.2 | 360.1 |
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 | 251.2 | 360.1 |
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 | 2 | 4.3 |
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 | 790.1 | 429 |
Fair Value, Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivatives | 23.1 | 1.3 |
Total assets | 2,140.3 | 2,176.9 |
Fair Value, Recurring | Level 2 | Fixed maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 2,117 | 2,174.9 |
Fair Value, Recurring | Level 2 | Fixed maturities | Collateralized Loan Obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 164.7 | 214.1 |
Fair Value, Recurring | Level 2 | Fixed maturities | U.S. Governments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 2.1 | 2.1 |
Fair Value, Recurring | Level 2 | Fixed maturities | Foreign Governments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 4.1 | 30.3 |
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 | 84.4 | 94.4 |
Fair Value, Recurring | Level 2 | Fixed maturities | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 1,250.7 | 1,180.5 |
Fair Value, Recurring | Level 2 | Fixed maturities | Commercial mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 270.2 | 280.5 |
Fair Value, Recurring | Level 2 | Fixed maturities | Residential mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 229.3 | 248.8 |
Fair Value, Recurring | Level 2 | Fixed maturities | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 111.5 | 124.2 |
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 | 0.2 | 0.2 |
Fair Value, Recurring | Level 2 | Short-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 0 | 0.5 |
Fair Value, Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivatives | 0 | 0 |
Total assets | 92.8 | 56.8 |
Fair Value, Recurring | Level 3 | Fixed maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 35.4 | 50.4 |
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 | 32.6 |
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 | 12.8 | 17.8 |
Fair Value, Recurring | Level 3 | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 54.2 | 6.4 |
Fair Value, Recurring | Level 3 | Other investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 3.2 | 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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 56.8 | $ 56.2 |
Transfers into Level 3 | 0.7 | 5.6 |
Transfers out of Level 3 | (10.1) | (13.2) |
Included in net income | 29 | (0.5) |
Included in other comprehensive income | (0.2) | 0.8 |
Purchases | 24.4 | 10.6 |
Sales | (0.2) | (1.6) |
Settlements | (7.6) | (1.1) |
Ending balance | 92.8 | 56.8 |
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 | 28.8 | (0.8) |
Fixed maturities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 50.4 | 40.7 |
Transfers into Level 3 | 0.7 | 5.6 |
Transfers out of Level 3 | (10.1) | (5.6) |
Included in net income | 1.1 | (0.1) |
Included in other comprehensive income | (0.2) | 0.8 |
Purchases | 1.1 | 10.6 |
Sales | 0 | (0.5) |
Settlements | (7.6) | (1.1) |
Ending balance | 35.4 | 50.4 |
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 | 6.4 | 15.5 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (7.6) |
Included in net income | 27.9 | (0.4) |
Included in other comprehensive income | 0 | 0 |
Purchases | 20.1 | 0 |
Sales | (0.2) | (1.1) |
Settlements | 0 | 0 |
Ending balance | 54.2 | 6.4 |
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 | 28.8 | (0.8) |
Other Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Included in net income | 0 | |
Included in other comprehensive income | 0 | |
Purchases | 3.2 | |
Sales | 0 | |
Settlements | 0 | |
Ending balance | 3.2 | $ 0 |
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 |
Investments - Schedule of Com_2
Investments - Schedule of Commercial Mortgage Loans (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ 228.1 | $ 144.8 |
Total Loans Member | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | 440.5 | 144.8 |
Mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | 228.1 | 144.8 |
Private loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | 212.4 | 0 |
Fair Value | Total Loans Member | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | 445.2 | 148.8 |
Fair Value | Mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | 232.5 | 148.8 |
Fair Value | Private loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, at cost | $ 212.7 | $ 0 |
Allowance for Credit Losses - S
Allowance for Credit Losses - Schedule of Premiums Receivable (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Credit Loss [Abstract] | ||||
Premiums receivable | $ 248.4 | $ 311.9 | $ 230.7 | $ 292 |
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 3 | 4.7 | ||
Current period change for estimated uncollectible premiums | 2.2 | 1.4 | ||
Write-offs of uncollectible premiums receivable | (1.6) | |||
Ending balance | $ 3.6 | $ 6.1 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Schedule of Reinsurance Recoverables (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Credit Loss [Abstract] | ||||
Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance | $ 2,994.3 | $ 2,959.3 | $ 2,908.2 | $ 3,029.1 |
Allowance for Estimated Uncollectible Reinsurance | $ 0 | $ 0 | $ 4.7 | $ 4.7 |
Reserves for Losses and Loss _3
Reserves for Losses and Loss Adjustment Expenses - Schedule of Reserves for Losses and Loss Adjustment Expenses (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 11 Months Ended | |||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Nov. 15, 2023 USD ($) agreement | Dec. 31, 2023 USD ($) | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||||
Net reserves - beginning of the year | $ 2,747.1 | $ 2,213.1 | $ 2,213.1 | |||
Losses and LAE incurred during current calendar year, net of reinsurance: | ||||||
Current accident year | 381.1 | 451 | ||||
Prior accident years | 65.6 | 75 | ||||
Losses and LAE incurred during calendar year, net of reinsurance | $ 226.7 | $ 241.4 | 446.7 | 526 | ||
Losses and LAE payments made during current calendar year, net of reinsurance: | ||||||
Current accident year | 23.2 | 58.3 | ||||
Prior accident years | 406.3 | 256.4 | ||||
Losses and LAE payments made during current calendar year, net of reinsurance: | 429.5 | 314.7 | ||||
Add/(Deduct): | ||||||
Divestitures | 0 | 24.4 | ||||
Retroactive reinsurance | 0 | 21.7 | ||||
Deferred gain on U.S. loss portfolio transfer, net of amortization | 0 | (6) | ||||
Total net reserve adjustments | 0 | 40.1 | ||||
Foreign exchange adjustments | (2.2) | 3.5 | ||||
Net reserves - end of period | 2,762.1 | 2,468 | 2,762.1 | 2,468 | ||
Reinsurance recoverables on unpaid losses and LAE, end of period | 2,754.8 | 2,736.7 | 2,754.8 | 2,736.7 | ||
Gross reserves - end of period | $ 5,516.9 | $ 5,204.7 | $ 5,516.9 | $ 5,204.7 | $ 5,544.5 | |
Number of retroactive reinsurance agreements entered into | agreement | 2 |
Reserves for Losses and Loss _4
Reserves for Losses and Loss Adjustment Expenses - Schedule of Impact from (Favorable) Unfavorable Development of Prior Accident Years' Loss and LAE Reserves on Each Reporting Segment (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items] | ||
Total unfavorable (favorable) prior-year development | $ 65.6 | $ 75 |
U.S. Operations | ||
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items] | ||
Total unfavorable (favorable) prior-year development | 55.1 | 65.1 |
International Operations | ||
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items] | ||
Total unfavorable (favorable) prior-year development | 10.1 | 8.2 |
Run-off Lines | ||
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items] | ||
Total unfavorable (favorable) prior-year development | $ 0.4 | $ 1.7 |
Disclosures About Fair Value _3
Disclosures About Fair Value of Financial Instruments - Schedule of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | $ 370.6 | $ 369.2 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 375.7 | 381.9 |
Junior subordinated debentures | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 242.2 | 241.2 |
Junior subordinated debentures | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 248.9 | 249.2 |
Junior subordinated debentures | Trust preferred debentures | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 161.4 | 160.8 |
Junior subordinated debentures | Trust preferred debentures | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 165.6 | 165.9 |
Junior subordinated debentures | Subordinated debentures | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 80.8 | 80.4 |
Junior subordinated debentures | Subordinated debentures | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 83.3 | 83.3 |
Senior unsecured fixed rate notes | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | 128.4 | 128 |
Senior unsecured fixed rate notes | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial instruments | $ 126.8 | $ 132.7 |
Disclosures About Fair Value _4
Disclosures About Fair Value of Financial Instruments - Schedule of Fair Values Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | $ 375.7 | $ 381.9 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 126.8 | 132.7 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 248.9 | 249.2 |
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 | 248.9 | 249.2 |
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 | 248.9 | 249.2 |
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 | 165.6 | 165.9 |
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 | 165.6 | 165.9 |
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 | 83.3 | 83.3 |
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 | 83.3 | 83.3 |
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 | 126.8 | 132.7 |
Senior unsecured fixed rate notes | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments | 126.8 | 132.7 |
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 |
Stockholders' Equity (Detail)
Stockholders' Equity (Detail) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 17, 2024 USD ($) | May 07, 2024 $ / shares | Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) | Dec. 31, 2023 $ / shares | |
Class of Stock [Line Items] | |||||||
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 | ||||||
Depositary shares, dividends per share (in dollars per share) | $ 0.43750 | ||||||
Dividends declared | $ | $ 2.7 | $ 2.7 | $ 5.3 | $ 5.3 | |||
Series A Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, dividends declared (in dollars per share) | $ 437.50 | ||||||
Preferred stock, dividend rate (in percentage) | 7% | ||||||
Preferred shares par value (in dollars per share) | $ 1 | ||||||
Liquidation preference (in dollars per share) | $ 25,000 | ||||||
Dividends declared | $ | $ 2.7 | ||||||
Argo Group International Holdings, Inc. | Brookfield Reinsurance | |||||||
Class of Stock [Line Items] | |||||||
Number of shares purchased (in shares) | shares | 200 | ||||||
Consideration transferred, equity interests issued | $ | $ 200 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 1,297.5 | $ 1,232.9 |
Other comprehensive income before reclassifications | (19.8) | 18.3 |
Amounts reclassified from accumulated other comprehensive loss | (5.1) | 20.5 |
Net current-period other comprehensive income (loss) | (24.9) | 38.8 |
Ending Balance | 1,505.6 | 1,234.8 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 51.8 | (305.1) |
Ending Balance | 26.9 | (266.3) |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 0.1 | (4.2) |
Other comprehensive income before reclassifications | (0.1) | 0.5 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current-period other comprehensive income (loss) | (0.1) | 0.5 |
Ending Balance | 0 | (3.7) |
Unrealized Holding Gains (Losses) on Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 51.1 | (293.1) |
Other comprehensive income before reclassifications | (19.7) | 17 |
Amounts reclassified from accumulated other comprehensive loss | (5.1) | 20.5 |
Net current-period other comprehensive income (loss) | (24.8) | 37.5 |
Ending Balance | 26.3 | (255.6) |
Defined Benefit Pension Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 0.6 | (7.8) |
Other comprehensive income before reclassifications | 0 | 0.8 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current-period other comprehensive income (loss) | 0 | 0.8 |
Ending Balance | $ 0.6 | $ (7) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Schedule of Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Unrealized gains and losses on securities: | ||||
Net realized investment and other gains (losses) | $ 24.8 | $ 1.6 | $ 31 | $ (16.3) |
Income tax provision (benefit) | 5.6 | (5.8) | 7.2 | (14.3) |
Net income (loss) | 12.7 | 2.2 | 38.3 | (31.6) |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Unrealized gains and losses on securities: | ||||
Net income (loss) | (0.1) | (3) | 5.1 | (20.5) |
Unrealized Gains and Losses on Securities | Reclassification out of Accumulated Other Comprehensive Income | ||||
Unrealized gains and losses on securities: | ||||
Net realized investment and other gains (losses) | (0.1) | (3.7) | 6.4 | (25.9) |
Income tax provision (benefit) | $ 0 | $ 0.7 | $ (1.3) | $ 5.4 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Interest Paid and Income Taxes Paid (Recovered) (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Supplemental Cash Flow [Line Items] | ||
Total interest paid | $ 18.9 | $ 16.6 |
Income taxes paid | 0.1 | 0.2 |
Income taxes recovered | 0 | (0.1) |
Income taxes paid, net | 0.1 | 0.1 |
Noncash activity for a lease commenced | 3.3 | |
Senior unsecured fixed rate notes | ||
Supplemental Cash Flow [Line Items] | ||
Total interest paid | 4.7 | 4.7 |
Junior subordinated debentures | ||
Supplemental Cash Flow [Line Items] | ||
Total interest paid | 12.3 | 11.1 |
Other indebtedness | ||
Supplemental Cash Flow [Line Items] | ||
Total interest paid | $ 1.9 | $ 0.8 |
Schedule of Underwriting, Acqui
Schedule of Underwriting, Acquisition and General Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Underwriting, Acquisition and Insurance Expenses [Abstract] | ||||
Commission expense | $ 26.5 | $ 40.4 | $ 57.6 | $ 97.9 |
Other underwriting and insurance expenses | 64.5 | 70.2 | 132.4 | 156.2 |
Amortization of value of business acquired and other intangible assets | 43 | 0 | 86.1 | 0 |
Total | 134 | 110.6 | 276.1 | 254.1 |
Net deferral of policy acquisition costs | (17.2) | 0.3 | (42.2) | (6.2) |
Total underwriting, acquisition and general expenses | $ 116.8 | $ 110.9 | $ 233.9 | $ 247.9 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ 18.3 | $ (3.6) | $ 45.5 | $ (45.9) |
Effective Tax Rate | 30.60% | 158.80% | 15.80% | 31% |
Bermuda | ||||
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ 0 | $ 3.6 | $ 0 | $ (11.5) |
Effective Tax Rate | 0% | 0% | 0% | 0% |
United States | ||||
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ 21.8 | $ (5.7) | $ 49.8 | $ (13.1) |
Effective Tax Rate | 25.70% | 95.90% | 14.30% | 53.10% |
United Kingdom | ||||
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ (2.3) | $ (1.5) | $ (2.3) | $ (21.6) |
Effective Tax Rate | 0% | 18.90% | 0% | 34.30% |
United Arab Emirates | ||||
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ 0 | $ 0.3 | ||
Effective Tax Rate | 0% | 0% | ||
Italy | ||||
Income Tax Examination [Line Items] | ||||
Pre-Tax Income (Loss) | $ (1.2) | $ 0.1 | $ (2) | $ 0.1 |
Effective Tax Rate | 0% | (2.70%) | (1.90%) | (338.50%) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision (benefit) at expected rate | $ 3.7 | $ (1.5) | $ 9.4 | $ (6.9) |
Tax effect of: | ||||
Nontaxable investment income | (0.1) | 0 | (0.2) | (0.1) |
Foreign exchange adjustments | 0 | 0 | 0 | (2.6) |
Base Erosion and Anti-Abuse Tax | 0 | (3.5) | 0 | (3.5) |
Withholding taxes | 0 | 0 | 0 | 0.1 |
Ireland Capital Loss | 3.3 | 0 | 3.3 | 0 |
U.S. state tax expense, net of federal income tax effect | 0 | (1.3) | 0 | (1.2) |
Change in uncertain tax position liability | 0 | 1.2 | 0 | 1.2 |
Change in valuation allowance | (2.4) | 0 | (2.4) | (0.1) |
Impact of change in tax rate related to Finance Act 2021 | 0 | 0 | 0 | (0.4) |
Prior period adjustment | 1.1 | 0 | (3.4) | (0.1) |
Other | 0 | (0.7) | 0.5 | (0.7) |
Income tax provision (benefit) | $ 5.6 | $ (5.8) | $ 7.2 | $ (14.3) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Valuation Allowance [Line Items] | ||||
Net operating losses carryback period | 2 years | |||
Capital losses carryback period | 3 years | |||
Change in valuation allowance | $ (2.4) | $ 0 | $ (2.4) | $ (0.1) |
More-likely-than-not deferred tax assets that will be realized | 39 | 39 | ||
Decrease in tax penalty expense | 1.1 | |||
Decrease in income tax penalties expense | 0.2 | |||
Revenue Commissioners, Ireland | ||||
Valuation Allowance [Line Items] | ||||
(Decrease) increase in valuation allowance | (3.3) | (3.3) | ||
His Majesty's Revenue and Customs (HMRC) | ||||
Valuation Allowance [Line Items] | ||||
(Decrease) increase in valuation allowance | $ 0.9 | $ 0.9 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Nov. 16, 2023 | Jun. 30, 2024 | |
Other Commitments [Line Items] | ||
Contractual commitments related to its limited partnership investments (up to) | $ 90.1 | |
Contractual commitments period (not to exceed) | 12 years | |
Commitment to fund loan and mortgage loans | $ 43.3 | |
Argo Group International Holdings, Inc. | Common Stock | Brookfield Reinsurance | ||
Other Commitments [Line Items] | ||
Equity interests issued and issuable (in dollars per share) | $ 30 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Revenue and Income (Loss) Before Income Taxes for Each Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Net earned premiums | $ 289.9 | $ 329.9 | $ 603.6 | $ 719.8 |
Net investment income | 66 | 32.8 | 124.8 | 62.5 |
Net investment and other gains (losses) | 24.8 | 1.6 | 31 | (16.3) |
Total revenue | 380.7 | 364.3 | 759.4 | 766 |
Income (loss) before income taxes | 18.3 | (3.6) | 45.5 | (45.9) |
Foreign currency exchange gains (losses) | (2.7) | (0.7) | (0.7) | (3.4) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes | (0.6) | 4.6 | 23.6 | 1.7 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes | (3.2) | (9.1) | (8.4) | (27.9) |
U.S. Operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net earned premiums | 264.8 | 311.2 | 551.5 | 636.8 |
Net investment income | 56.1 | 27.1 | 106.1 | 51.5 |
Income (loss) before income taxes | (6.2) | (4.6) | 26 | (9.2) |
International Operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net earned premiums | 25 | 18.6 | 51.9 | 82.9 |
Net investment income | 8 | 5 | 15.2 | 9.6 |
Income (loss) before income taxes | 4.8 | 9.5 | (3) | 11.9 |
Run-off Lines | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net earned premiums | 0.1 | 0.1 | 0.2 | 0.1 |
Net investment income | 1.9 | 0.7 | 3.5 | 1.4 |
Income (loss) before income taxes | $ 0.8 | $ (0.3) | $ 0.6 | $ (1) |
Segment Information - Schedul_2
Segment Information - Schedule of Earned Premiums by Geographic Location (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total earned premiums | $ 289.9 | $ 329.9 | $ 603.6 | $ 719.8 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total earned premiums | 264.9 | 311.3 | 551.7 | 636.9 |
United Kingdom | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total earned premiums | 0 | 0 | 0 | 48.3 |
Bermuda | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total earned premiums | $ 25 | $ 18.6 | $ 51.9 | $ 34.6 |
Segment Information - Schedul_3
Segment Information - Schedule of Identifiable Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Identifiable assets | $ 8,720.3 | $ 8,503.1 |
Operating Segments | U.S. Operations | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Identifiable assets | 6,649.8 | 6,279 |
Operating Segments | International Operations | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Identifiable assets | 1,728 | 1,888.9 |
Operating Segments | Run-off Lines | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Identifiable assets | 223.5 | 221.4 |
Corporate and Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Identifiable assets | $ 119 | $ 113.8 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | ||||
Included in net income | $ 29 | $ (0.5) | ||
Loans, at cost | $ 228.1 | 228.1 | 144.8 | |
Unfunded Commitments | 90.1 | 90.1 | 93.4 | |
Accrued underwriting expenses and other liabilities | 154.7 | 154.7 | 73.9 | |
Equity securities | ||||
Related Party Transaction [Line Items] | ||||
Included in net income | 27.9 | (0.4) | ||
Mortgage Loans | ||||
Related Party Transaction [Line Items] | ||||
Purchase of loans | 102.1 | $ 0 | ||
Loans, at cost | 228.1 | 228.1 | 144.8 | |
Private Loans | ||||
Related Party Transaction [Line Items] | ||||
Purchase of loans | 204.2 | $ 0 | ||
Loans, at cost | 212.4 | 212.4 | $ 0 | |
Related Party | ||||
Related Party Transaction [Line Items] | ||||
Purchase of loans | 219.2 | 251.7 | ||
Unfunded Commitments | 52.6 | 52.6 | ||
Investment management fees | 2.5 | 4.8 | ||
Accrued underwriting expenses and other liabilities | 2.5 | 2.5 | ||
Related Party | Mortgage Loans | ||||
Related Party Transaction [Line Items] | ||||
Loans, at cost | 101.3 | 101.3 | ||
Related Party | Private Loans | ||||
Related Party Transaction [Line Items] | ||||
Loans, at cost | $ 126.6 | $ 126.6 |