Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 09, 2018 | Jun. 30, 2017 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Trading Symbol | AFSI | ||
Entity Registrant Name | AMTRUST FINANCIAL SERVICES, INC. | ||
Entity Central Index Key | 1,365,555 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 196,256,697 | ||
Entity Public Float | $ 1,691,514,138 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments: | ||
Fixed maturity securities, available-for-sale, at fair value (amortized cost $7,408,735; $7,315,041) | $ 7,488,290 | $ 7,398,134 |
Fixed maturity securities, trading, at fair value (amortized cost $52,171; $29,081) | 49,821 | 33,782 |
Equity securities, available-for-sale, at fair value (cost $93,580; $126,670) | 114,695 | 137,162 |
Equity securities, trading, at fair value (cost $102,342; $76,163) | 97,036 | 81,960 |
Short-term investments | 187,793 | 0 |
Equity investment in unconsolidated subsidiaries – related parties | 0 | 151,332 |
Other investments (related party $56,601; $72,328) | 212,026 | 152,187 |
Total investments | 8,149,661 | 7,954,557 |
Cash and cash equivalents | 763,121 | 567,771 |
Restricted cash and cash equivalents | 480,118 | 713,338 |
Accrued interest and dividends | 64,364 | 54,680 |
Premiums receivable, net | 2,784,848 | 2,802,167 |
Reinsurance recoverable (related party $3,026,834; $2,452,242) | 6,131,357 | 4,329,521 |
Prepaid reinsurance premiums (related party $1,172,332; $1,133,485) | 2,137,347 | 1,994,092 |
Federal income tax receivable | 73,911 | 110,315 |
Deferred policy acquisition costs | 922,857 | 928,920 |
Assets held for sale | 900,903 | 0 |
Property and equipment, net | 453,378 | 314,332 |
Goodwill | 552,892 | 686,565 |
Intangible assets, net | 380,823 | 556,560 |
Other assets (related party $271,401; $161,845; recorded at fair value $20,808; $356,856) | 1,423,050 | 1,601,850 |
Total assets | 25,218,630 | 22,614,668 |
Liabilities: | ||
Loss and loss adjustment expense reserves | 12,138,768 | 10,140,716 |
Unearned premiums | 5,279,239 | 4,880,066 |
Ceded reinsurance premiums payable (related party $402,461; $633,638) | 809,628 | 804,882 |
Reinsurance payable on paid losses | 0 | 15,960 |
Funds held under reinsurance treaties | 83,588 | 70,868 |
Note payable on collateral loan – related party | 167,975 | 167,975 |
Securities sold but not yet purchased, at fair value | 75,462 | 36,394 |
Securities sold under agreements to repurchase, at contract value | 0 | 160,270 |
Liabilities held for sale | 761,679 | 0 |
Deferred gain on retroactive reinsurance | 330,029 | 0 |
Debt (net of debt issuance cost of $15,027, $15,960) | 1,288,721 | 1,234,900 |
Accrued expenses and other liabilities (recorded at fair value $78,536; $76,840) | 913,474 | 1,635,666 |
Total liabilities | 21,848,563 | 19,147,697 |
Commitments and contingencies | ||
Redeemable non-controlling interest | 1,853 | 1,358 |
Stockholders’ equity: | ||
Common stock, $0.01 par value; 500,000 shares authorized; 210,751 and 196,455 issued in 2017 and 2016, respectively; 196,053 and 170,508 outstanding in 2017 and 2016, respectively | 2,108 | 1,965 |
Preferred stock, $0.01 par value; 10,000 shares authorized; 5,399 issued and outstanding; $913,750 aggregated liquidation preference in 2017 and 2016, respectively | 913,750 | 913,750 |
Additional paid-in capital | 1,639,681 | 1,384,922 |
Treasury stock at cost; 14,698 and 25,947 shares in 2017 and 2016, respectively | (242,106) | (310,883) |
Accumulated other comprehensive income (loss) | 15,516 | (125,722) |
Retained earnings | 860,854 | 1,405,071 |
Total AmTrust Financial Services, Inc. equity | 3,189,803 | 3,269,103 |
Non-controlling interest | 178,411 | 196,510 |
Total stockholders’ equity | 3,368,214 | 3,465,613 |
Total liabilities and stockholders' equity | $ 25,218,630 | $ 22,614,668 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed maturities, available-for-sale, at fair value | $ 7,408,735 | $ 7,315,041 |
Fixed maturities, trading, at fair value | 52,171 | 29,081 |
Equity securities, available-for-sale, at fair value | 93,580 | 126,670 |
Equity securities, trading, at fair value | 102,342 | 76,163 |
Other investments | 212,026 | 152,187 |
Other assets | 1,423,050 | 1,601,850 |
Other assets at fair value | 20,808 | 356,856 |
Accrued expenses and other current liabilities, fair value | 78,536 | 76,840 |
Debt Issuance Costs, Net | $ 15,027 | $ 15,960 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 210,751,000 | 196,455,000 |
Common stock, outstanding (in shares) | 196,053,000 | 170,508,000 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued and outstanding (in shares) | 5,399,000 | 5,399,000 |
Preferred stock, aggregated liquidation preference | $ 913,750 | $ 913,750 |
Treasury stock at cost (in shares) | 14,698,000 | 25,947,000 |
Reinsurance recoverable | $ 6,131,357 | $ 4,329,521 |
Prepaid reinsurance premium | 2,137,347 | 1,994,092 |
Ceded reinsurance premiums payable | 809,628 | 804,882 |
Related Party Transactions | ||
Other investments | 56,601 | 72,328 |
Other assets | 271,401 | 161,845 |
Reinsurance recoverable | 3,026,834 | 2,452,242 |
Prepaid reinsurance premium | 1,172,332 | 1,133,485 |
Ceded reinsurance premiums payable | $ 402,461 | $ 633,638 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premium income: | |||
Net written premiums | $ 5,152,516 | $ 4,851,327 | $ 4,261,928 |
Change in unearned premiums | (96,418) | (183,362) | (240,687) |
Net earned premiums | 5,056,098 | 4,667,965 | 4,021,241 |
Service and fee income (related parties - $90,655; $87,906; and $76,454) | 612,205 | 537,966 | 428,143 |
Net investment income | 227,503 | 208,047 | 156,290 |
Net realized gains on investments | 63,135 | 36,478 | 8,117 |
Total revenues | 5,958,941 | 5,450,456 | 4,613,791 |
Expenses: | |||
Loss and loss adjustment expenses | 4,084,478 | 3,142,279 | 2,688,118 |
Acquisition costs and other underwriting expenses (net of ceding commission and administrative services - related party - $609,321; $608,904; and $545,661) | 1,622,507 | 1,230,168 | 993,571 |
Other | 705,822 | 564,065 | 473,253 |
Total expenses | 6,412,807 | 4,936,512 | 4,154,942 |
(Loss) income before other (expenses) income, provision for income taxes and equity in earnings of unconsolidated subsidiaries | (453,866) | 513,944 | 458,849 |
Other income (expenses): | |||
Interest expense (net of interest income - related party - $4,654; $7,593; and $8,701) | (98,265) | (79,526) | (55,355) |
Loss on extinguishment of debt | 0 | 0 | (5,271) |
(Loss) gain on investment in life settlement contracts net of profit commission | (2,444) | 46,147 | 19,844 |
Foreign currency (loss) gain | (139,910) | (29,289) | 47,301 |
Gain on acquisition | 0 | 48,775 | 5,826 |
Gain on sale of policy management system | 186,755 | 0 | 0 |
Total other (expenses) income | (53,864) | (13,893) | 12,345 |
(Loss) income before income taxes and equity in earnings of unconsolidated subsidiaries | (507,730) | 500,051 | 471,194 |
(Benefit) provision for income taxes | (99,363) | 85,307 | 38,946 |
(Loss) income before equity in earnings of unconsolidated subsidiaries | (408,367) | 414,744 | 432,248 |
Equity in earnings of unconsolidated subsidiaries (related parties) | 73,488 | 15,626 | 25,385 |
Net (loss) income | (334,879) | 430,370 | 457,633 |
Net income attributable to non-controlling interest and redeemable non-controlling interest of subsidiaries | (14,010) | (19,384) | (6,928) |
Net (loss) income attributable to AmTrust stockholders | (348,889) | 410,986 | 450,705 |
Dividends on preferred stock | (66,284) | (47,847) | (31,590) |
Net (loss) income attributable to AmTrust common stockholders | $ (415,173) | $ 363,139 | $ 419,115 |
Earnings per common share: | |||
Basic (loss) earnings per share (in dollars per share) | $ (2.23) | $ 2.10 | $ 2.54 |
Diluted (loss) earnings per share (in dollars per share) | (2.23) | 2.08 | 2.49 |
Dividends declared per common share (in dollars per share) | $ 0.68 | $ 0.64 | $ 0.55 |
Weighted average common shares outstanding - Basic (in shares) | 185,961 | 172,554 | 165,042 |
Weighted average common shares outstanding - Diluted (in shares) | 185,961 | 174,545 | 168,360 |
Total other-than-temporary impairment losses | $ 0 | $ (31,659) | $ (19,155) |
Net impairment losses recognized in earnings | 0 | (31,659) | (19,155) |
Net realized gains on available for sale securities | 62,841 | 52,353 | 15,578 |
Net realized (losses) gains on trading securities | (15,157) | 14,896 | 10,037 |
Net realized gains on other invested assets | 15,451 | 888 | 1,657 |
Net realized investment gains | $ 63,135 | $ 36,478 | $ 8,117 |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Service, fee and other revenues | $ 612,205 | $ 537,966 | $ 428,143 |
Interest expense | 4,654 | 7,593 | 8,701 |
Related Party Transactions | |||
Service, fee and other revenues | 90,655 | 87,906 | 76,454 |
Acquisition costs and other underwriting expenses | 609,321 | 608,904 | 545,661 |
Maiden | |||
Service, fee and other revenues | 24,177 | 26,091 | 24,130 |
Acquisition costs and other underwriting expenses | $ 609,321 | $ 599,509 | $ 510,792 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $ (255,388) | $ (158,822) | $ 29,123 | $ 50,208 | $ 93,834 | $ 95,201 | $ 144,549 | $ 96,786 | $ (334,879) | $ 430,370 | $ 457,633 |
Other comprehensive (loss) income, net of tax: | |||||||||||
Foreign currency translation adjustments | 143,386 | (90,129) | (89,252) | ||||||||
Change in fair value of interest rate swap | 140 | 528 | 621 | ||||||||
Minimum pension liability | 930 | (3,070) | 2,686 | ||||||||
Unrealized gain (loss) on securities: | |||||||||||
Gross unrealized holding gain (loss) | 70,796 | 177,395 | (171,109) | ||||||||
Less tax (benefit) expense | 11,173 | 46,339 | (59,888) | ||||||||
Net unrealized holding gain (loss) | 59,623 | 131,056 | (111,221) | ||||||||
Other-than-temporary impairment loss | 0 | 25,219 | 4,315 | ||||||||
Other net realized (loss) gain on investments | (62,841) | (55,934) | (1,118) | ||||||||
Reclassification adjustment for investment (loss) gain included in net income | (62,841) | (30,715) | 3,197 | ||||||||
Other comprehensive income (loss), net of tax | 141,238 | 7,670 | (193,969) | ||||||||
Comprehensive (loss) income | (193,641) | 438,040 | 263,664 | ||||||||
Less: comprehensive income attributable to non-controlling and redeemable non-controlling interest | (14,010) | (19,384) | (6,928) | ||||||||
Comprehensive (loss) income attributable to AmTrust Financial Services, Inc. | $ (207,651) | $ 418,656 | $ 256,736 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Total Amtrust Financial Service, Inc. equity | Common stock | Preferred stock | Additional paid-in capital | Treasury stock | Accumulated Other Comprehensive Income (Loss) | Retained earnings | Noncontrolling Interest | Common stock | Common stockTotal Amtrust Financial Service, Inc. equity | Common stockAdditional paid-in capital | Common stockTreasury stock | Preferred stock | Preferred stockTotal Amtrust Financial Service, Inc. equity | Preferred stockAdditional paid-in capital | 5.5% Convertible senior notes due 2021 (the 2021 Notes)Convertible Senior Notes | 5.5% Convertible senior notes due 2021 (the 2021 Notes)Convertible Senior NotesTotal Amtrust Financial Service, Inc. equity | 5.5% Convertible senior notes due 2021 (the 2021 Notes)Convertible Senior NotesAdditional paid-in capital | 5.5% Convertible senior notes due 2021 (the 2021 Notes)Convertible Senior NotesTreasury stock |
Beginning balance at Dec. 31, 2014 | $ 2,071,394 | $ 1,912,213 | $ 1,960 | $ 300,000 | $ 1,021,789 | $ (297,586) | $ 60,577 | $ 825,473 | $ 159,181 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net (loss) income | 457,633 | 457,633 | 457,633 | |||||||||||||||||
Foreign currency translation, net of tax | (89,246) | (89,252) | (89,252) | 6 | ||||||||||||||||
Change in fair value of derivatives, net of tax | 621 | 621 | 621 | |||||||||||||||||
Minimum pension liability, net of tax | 2,686 | 2,686 | 2,686 | |||||||||||||||||
Unrealized holding loss on investments, net of tax | (111,221) | (111,221) | (111,221) | |||||||||||||||||
Reclassification adjustment for securities sold during the year, net of tax | 3,197 | 3,197 | 3,197 | |||||||||||||||||
Non-controlling interest in subsidiaries | (5,793) | (5,793) | 5,793 | |||||||||||||||||
Share issuance | 182,500 | $ 487,087 | $ 487,087 | $ 366,712 | $ 120,375 | $ 176,529 | $ 176,529 | $ (5,971) | ||||||||||||
Common stock repurchase | (578) | (578) | (578) | |||||||||||||||||
Extinguishment of 5.5% convertible senior notes | $ (3,764) | $ (3,764) | $ (19,302) | $ 15,538 | ||||||||||||||||
Issuance or purchase of restricted stock | (5,667) | (5,667) | (3,055) | (2,612) | ||||||||||||||||
Stock option compensation | 22,763 | 22,763 | 22,763 | |||||||||||||||||
Exercise of stock options, other including tax benefit | 2,556 | 2,556 | 4 | 556 | 1,996 | |||||||||||||||
Capital contribution (dividends) to subsidiaries, net | 11,475 | 11,475 | ||||||||||||||||||
Income attributable to non-controlling interest | (6,928) | |||||||||||||||||||
Distribution of non-controlling interest | (1,135) | (1,135) | (1,135) | |||||||||||||||||
Preferred stock dividend | (31,590) | (31,590) | (31,590) | |||||||||||||||||
Common stock dividend | (92,505) | (92,505) | (92,505) | |||||||||||||||||
Ending balance at Dec. 31, 2015 | 2,900,235 | 2,723,780 | 1,964 | 482,500 | 1,383,492 | (162,867) | (133,392) | 1,152,083 | 176,455 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net (loss) income | 430,370 | 430,370 | 430,370 | |||||||||||||||||
Foreign currency translation, net of tax | (90,129) | (90,129) | (90,129) | |||||||||||||||||
Change in fair value of derivatives, net of tax | 528 | 528 | 528 | |||||||||||||||||
Minimum pension liability, net of tax | (3,070) | (3,070) | (3,070) | |||||||||||||||||
Unrealized holding loss on investments, net of tax | 131,056 | 131,056 | 131,056 | |||||||||||||||||
Reclassification adjustment for securities sold during the year, net of tax | (30,715) | (30,715) | (30,715) | |||||||||||||||||
Non-controlling interest in subsidiaries | (757) | (19,384) | (19,384) | 18,627 | ||||||||||||||||
Share issuance | 1 | 431,250 | 346 | 346 | 269 | 76 | $ 417,264 | $ 417,264 | $ (13,986) | |||||||||||
Common stock repurchase | (152,392) | (152,392) | (152,392) | |||||||||||||||||
Extinguishment of 5.5% convertible senior notes | $ (1) | $ (1) | $ (3) | $ 2 | ||||||||||||||||
Stock option compensation | 23,286 | 23,286 | 23,286 | |||||||||||||||||
Exercise of stock options, other including tax benefit | (3,838) | (3,838) | (8,136) | 4,298 | ||||||||||||||||
Capital contribution (dividends) to subsidiaries, net | 1,428 | 1,428 | ||||||||||||||||||
Income attributable to non-controlling interest | (19,384) | |||||||||||||||||||
Distribution of non-controlling interest | (1,923) | (1,923) | (1,923) | |||||||||||||||||
Preferred stock dividend | (47,847) | (47,847) | (47,847) | |||||||||||||||||
Common stock dividend | (108,228) | (108,228) | (108,228) | |||||||||||||||||
Ending balance at Dec. 31, 2016 | 3,465,613 | 3,269,103 | 1,965 | 913,750 | 1,384,922 | (310,883) | (125,722) | 1,405,071 | 196,510 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net (loss) income | (334,879) | (334,879) | (334,879) | |||||||||||||||||
Foreign currency translation, net of tax | 143,386 | 143,386 | 143,386 | |||||||||||||||||
Change in fair value of derivatives, net of tax | 140 | 140 | 140 | |||||||||||||||||
Minimum pension liability, net of tax | 930 | 930 | 930 | |||||||||||||||||
Unrealized holding loss on investments, net of tax | 59,623 | 59,623 | 59,623 | |||||||||||||||||
Reclassification adjustment for securities sold during the year, net of tax | (62,841) | (62,841) | (62,841) | |||||||||||||||||
Share issuance | 298,747 | $ 143 | $ 298,747 | $ 238,677 | $ 59,927 | |||||||||||||||
Stock option compensation | 26,583 | 26,583 | 26,583 | |||||||||||||||||
Exercise of stock options, other including tax benefit | (1,651) | (1,651) | 0 | (6,849) | 5,198 | |||||||||||||||
RSU Vesting into stock | (3,652) | 3,652 | ||||||||||||||||||
Capital contribution (dividends) to subsidiaries, net | 20,359 | 20,359 | ||||||||||||||||||
Income attributable to redeemable non-controlling interest, net | (1,253) | (1,253) | (1,253) | |||||||||||||||||
Income attributable to non-controlling interest | (14,010) | (12,757) | (12,757) | 12,757 | ||||||||||||||||
Distribution of non-controlling interest | (51,215) | (51,215) | ||||||||||||||||||
Preferred stock dividend | (66,284) | (66,284) | (66,284) | |||||||||||||||||
Common stock dividend | (129,044) | (129,044) | (129,044) | |||||||||||||||||
Ending balance at Dec. 31, 2017 | $ 3,368,214 | $ 3,189,803 | $ 2,108 | $ 913,750 | $ 1,639,681 | $ (242,106) | $ 15,516 | $ 860,854 | $ 178,411 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Excess tax benefit from award | $ 448 | $ 5,930 | $ 10,211 |
Convertible Senior Notes | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | |||
Debt instrument, stated interest rate (percentage) | 5.50% | 5.50% | 5.50% |
Common stock | |||
Shares issued during the period (in shares) | 24,096 | 12 | 16,900 |
Preferred stock | |||
Shares issued during the period (in shares) | 431 | 165 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||||
Cash flows from operating activities: | ||||||
Net (loss) income | $ (334,879) | $ 430,370 | $ 457,633 | |||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||
Depreciation and amortization | 158,404 | 117,270 | 84,428 | |||
Amortization of deferred gain | (5,539) | 0 | 0 | |||
Net amortization of bond premium or discount | 18,350 | 29,310 | 17,401 | |||
Equity earnings on investment in unconsolidated subsidiaries | (73,488) | [1] | (17,224) | [1] | (25,385) | [1] |
Gain on investment in life settlement contracts, net | 2,444 | (46,147) | (19,844) | |||
Realized gain on marketable securities | (63,135) | (68,137) | (27,272) | |||
Non-cash write-down of marketable securities | 0 | 31,659 | 19,155 | |||
Non-cash write-down of investments | 21,352 | 0 | 0 | |||
Non-cash write-down of goodwill | 0 | 273 | 55,304 | |||
Discount on notes payable | 6,659 | 6,720 | 5,628 | |||
Stock based compensation | 26,583 | 23,286 | 22,763 | |||
Loss on extinguishment of debt | 0 | 0 | 5,271 | |||
Bad debt expense | 75,154 | 27,238 | 18,339 | |||
Foreign currency loss (gain) | 139,910 | 29,289 | (47,301) | |||
Gain on sale of policy management system | (186,755) | [2] | 0 | [2] | 0 | [2] |
Acquisition gain | 0 | (48,775) | (5,826) | |||
Dividend received from equity investment | 744 | 1,598 | 984 | |||
Changes in assets – (increase) decrease: | ||||||
Premiums and notes receivable | 89,887 | (423,790) | (396,910) | |||
Reinsurance recoverable | (1,757,714) | (541,507) | (570,050) | |||
Deferred policy acquisition costs, net | (191,190) | (252,487) | (64,377) | |||
Prepaid reinsurance premiums | (117,967) | (402,748) | (151,241) | |||
Prepaid expenses and other assets | (219,092) | 104,623 | (462,244) | |||
Changes in liabilities – increase (decrease): | ||||||
Reinsurance premium payable | 48,683 | 95,407 | 20,687 | |||
Loss and loss expense reserves | 1,625,556 | 1,413,039 | 1,440,388 | |||
Unearned premiums | 208,002 | 297,085 | 377,713 | |||
Funds held under reinsurance treaties | (14,075) | (58,090) | 9,955 | |||
Accrued expenses and other current liabilities | 166,809 | 168,441 | 246,060 | |||
Net cash (used in) provided by operating activities | (375,297) | 916,703 | 1,011,259 | |||
Purchases of: | ||||||
Fixed maturity securities, available-for-sale | (2,393,592) | (2,467,741) | (2,367,112) | |||
Equity securities, available-for-sale | (105,396) | (52,016) | (87,190) | |||
Equity securities, trading | (488,111) | (266,657) | (207,379) | |||
Other investments | (40,157) | (47,042) | (71,352) | |||
Subsidiaries, net of cash received | (102,905) | [3] | (402,232) | [3] | (242,358) | [3] |
Property, equipment and software | (199,409) | (117,047) | (152,249) | |||
Life settlement contracts | (16,473) | (17,230) | (1,065) | |||
Sales of: | ||||||
Fixed maturity securities, available-for-sale (includes maturities & paydowns) | 2,560,758 | 1,528,210 | 1,208,102 | |||
Equity securities, available-for-sale | 198,327 | 69,147 | 66,400 | |||
Equity securities, trading | 449,241 | 237,834 | 207,992 | |||
Other investments | 70,633 | 35,069 | 2,510 | |||
Securities sold but not purchased, net | 39,068 | (2,224) | 25,566 | |||
Equity method investment | 211,290 | [1] | 0 | [1] | 0 | [1] |
Life settlement contracts | 268,107 | [4] | 0 | [4] | 0 | [4] |
Policy management system | 57,040 | 0 | 0 | |||
Short term investments (purchases) sales, net | (173,786) | 79,180 | 71,319 | |||
Advance on equity interest in life settlement contracts entity | 39,724 | [4] | 0 | [4] | 0 | [4] |
Receipt of life settlement contract proceeds | 48,045 | 38,247 | 102,307 | |||
Decrease (Increase) in restricted cash and cash equivalents, net | 211,307 | (221,485) | (194,532) | |||
Net cash provided by (used in) investing activities | 633,711 | (1,605,987) | (1,639,041) | |||
Cash flows from financing activities: | ||||||
Revolving credit facility borrowings | 0 | 0 | 430,000 | |||
Revolving credit facility payments | 0 | 0 | (420,000) | |||
Repurchase agreements, net | (160,270) | 160,270 | 0 | |||
Secured loan agreement borrowings | 109,066 | 44,579 | 10,250 | |||
Secured loan agreement payments | (11,065) | (7,186) | (7,001) | |||
Promissory note payments | (52,343) | 0 | 0 | |||
2055 Subordinated notes proceeds | 0 | 0 | 285,000 | |||
Convertible senior notes payments | 0 | (10) | (62,079) | |||
Financing fees | (313) | (277) | (9,451) | |||
Common share issuance | 298,747 | 346 | 487,087 | |||
Common share repurchase | 0 | (152,392) | (578) | |||
Preferred share issuance | 0 | 417,264 | 176,529 | |||
Contingent consideration payments | (18,124) | (35,734) | (15,334) | |||
Non-controlling interest capital (dividends) contributions to consolidated subsidiaries, net | (30,918) | |||||
Non-controlling interest capital (dividends) contributions to consolidated subsidiaries, net | 1,428 | 11,475 | ||||
Stock option exercise and other | (1,651) | (3,839) | (2,556) | |||
Dividends distributed on common stock | (124,701) | (108,228) | (85,296) | |||
Dividends distributed on preferred stock | (66,284) | (47,847) | (31,590) | |||
Net cash (used in) provided by financing activities | (57,856) | 268,374 | 766,456 | |||
Effect of exchange rate changes on cash | 50,854 | (15,235) | (15,657) | |||
Cash included in business classified as held for sale | (56,062) | 0 | 0 | |||
Net increase (decrease) in cash and cash equivalents | 195,350 | (436,145) | 123,017 | |||
Cash and cash equivalents, beginning year | 567,771 | 1,003,916 | 880,899 | |||
Cash and cash equivalents, end of year | 763,121 | 567,771 | 1,003,916 | |||
Supplemental Cash Flow Information | ||||||
Interest payments on debt | 74,936 | 68,051 | 43,146 | |||
Income tax payments | 9,288 | 26,299 | 234,455 | |||
Declared dividends on common stock | $ 129,044 | $ 108,228 | $ 92,505 | |||
[1] | 2017 amounts relate to the sale of shares of National General Holding Corp. See Note 15 for more information. | |||||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmIyOTQ2MjBhYjk4YjRmNjk5M2EyYzE1MThhNGMwYjk4fFRleHRTZWxlY3Rpb246NjFEMTE4MkMxOUFDNDkwMDEyMTQwNzU1REQzRTJENDcM} | |||||
[3] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmIyOTQ2MjBhYjk4YjRmNjk5M2EyYzE1MThhNGMwYjk4fFRleHRTZWxlY3Rpb246QTU0NzhGRThFOEMxMTg1QkJCNEQwNzU1QUVFMDY0OEYM} | |||||
[4] | 2017 amounts relate to life settlement contract transactions in third and fourth quarters. See Note 6 for more information. |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations AmTrust Financial Services, Inc. (the “Company”) is an insurance holding company formed under the laws of Delaware. Through its wholly-owned subsidiaries, the Company provides specialty property and casualty insurance focusing on workers’ compensation and commercial package coverage for small business, specialty risk and extended warranty coverage, and property and casualty coverage for middle market business. The Company also provides reinsurance, primarily on personal and commercial automotive business. The Company transacts business primarily through twenty-four insurance subsidiaries domiciled in the United States ("U.S.") and seven major insurance subsidiaries domiciled outside of the U.S. |
Significant Accounting Polices
Significant Accounting Polices | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Reporting — The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include the accounts of the Company and its domestic and foreign subsidiaries. All significant intercompany transactions and accounts have been eliminated in the consolidated financial statements. Premiums — Insurance premiums, except for certain specialty risk and extended warranty programs, are recognized as earned on a straight-line basis over the contract period. Insurance premiums on specialty risk and extended warranty programs are earned over the contract period in proportion to the costs expected to be incurred in performing services over the contract. These estimates are based on the expected distribution of losses at the inception of the contract and are evaluated for appropriateness throughout the life of the contract. Unearned premiums represent the portion of premiums written which is applicable to the unexpired term of the contract or policy in force. Premium adjustments on contracts and audit premiums are based on estimates made over the contract period. Premiums earned but not yet billed to insureds are estimated and accrued, net of related costs. These estimates are subject to the effects of trends in payroll audit adjustments. Although considerable variability is inherent in such estimates, management believes that the accrual for earned but unbilled premiums is reasonable. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known; such adjustments are included in current operations. The Company historically has used a percentage of premiums for establishing its allowance for doubtful accounts. The Company reviews its allowance at least annually and makes adjustments as required. The allowance for doubtful accounts were approximately $107,074 and $72,867 as of December 31, 2017 and 2016 , respectively. Loss and Loss Adjustment Expense Reserves — Loss and loss adjustment expense (“LAE”) reserves represent the estimated ultimate net costs of all reported and unreported losses incurred. The reserves for unpaid losses and LAE are estimated using individual case-basis valuations and statistical analysis and are not discounted. Although considerable variability is inherent in the estimates of reserves for losses and LAE, management believes that the reserves for losses and LAE are adequate. The estimates are continually reviewed and adjusted as necessary in the period the experience develops or new information becomes known. Investments — The Company accounts for its investments in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320 Investments — Debt and Equity Securities , which requires that fixed maturity and equity securities that have readily determined fair values be segregated into categories based upon the Company’s intention for those securities. In accordance with ASC 320, the Company has classified its fixed maturity and certain equity securities as available-for-sale. The Company may sell its available-for-sale securities in response to changes in interest rates, risk/reward characteristics, liquidity needs or other factors. Fixed maturity securities and equity securities classified as available-for-sale are reported at their estimated fair values based on quoted market prices or a recognized pricing service, with unrealized gains and losses, net of tax effects, reported as a separate component of comprehensive income in stockholders’ equity. Additionally, the Company classified certain fixed maturity and equity securities as trading securities. Unrealized gains and losses on trading securities are reported within realized gains and losses. Realized gains and losses are determined on the specific identification method. The Company analyzes its fixed maturity and equity securities in an unrealized loss position for other-than-temporary impairment (“OTTI”) each reporting period. The Company considers an investment to be impaired when it has been in an unrealized loss position greater than a de minimis threshold for over 12 months, excluding securities backed by the U.S. government (e.g., U.S. treasury securities or agency-backed residential mortgage-backed securities). Additionally, the Company reviews whether any of the impaired positions related to securities for which OTTI was previously recognized, and whether the Company intends to sell any of the securities in an unrealized loss position. Once the Company completes the analysis described above, each security is further evaluated to assess whether the decline in the fair value of any investment below its cost basis is deemed other-than-temporary. The Company considers certain factors in completing its review of securities with unrealized losses for OTTI. For equity securities, the Company considers the length of time and the extent to which the fair value has been below cost, the financial condition and near-term prospects of the issuer, including any specific events that may influence the operations of the issuer, and the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value. For fixed maturity securities, the Company considers among other things, the length of time and the extent to which the fair value has been less than the amortized cost basis, adverse conditions and near-term prospects for improvement specifically related to the issuer, industry or geographic area, the historical and implied volatility of the fair value of the security, any information obtained from regulators and rating agencies, the issuer’s capital strength and the payment structure of the security and the likelihood the issuer will be able to make payments in the future (or the historical failure of the issuer to make scheduled interest or principal payments or payment of dividends). For equity securities, a decline in fair value that is considered to be other-than-temporary is recognized in net income based on the fair value of the security at the time of assessment, resulting in a new cost basis for the security. For fixed maturity securities where the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, a decline in fair value is considered to be other-than-temporary and is recognized in net income based on the fair value of the security at the time of assessment, resulting in a new cost basis for the security. If the decline in fair value of a fixed maturity security below its amortized cost is considered to be other-than-temporary based upon other considerations, the Company compares the estimated present value of the cash flows expected to be collected to the amortized cost of the security. The extent to which the estimated present value of the cash flows expected to be collected is less than the amortized cost of the security represents the credit-related portion of the other-than-temporary impairment, which is recognized in net income, resulting in a new cost basis for the security. Any remaining decline in fair value represents the non-credit portion of the other-than-temporary impairment, which is recognized in other comprehensive income (loss). The Company also classified certain of its fixed maturity equity securities as trading securities. Securities classified as trading are generally held for resale in anticipation of short-term market movement. Trading securities are stated at estimated fair market value. Gains and losses, both realized and unrealized, are included in the net realized gains or losses on investment on the consolidated statements of operations. The Company has the following major types of investments: (a) Cash, cash equivalents and restricted cash — Cash consists of uninvested balances in bank accounts. Cash equivalents consist of investments with original maturities of 90 days or less, primarily money market funds. Cash equivalents are carried at cost. Restricted cash consists of any cash or investment that is held for a specific purpose and therefore not available to the company for immediate or general business use. (b) Short-term investments — Short-term investments are carried at cost, which approximates fair value, and include investments with maturities between 91 days and less than 1 year at date of acquisition. (c) Fixed maturity and equity securities, available-for-sale — Fixed maturity and equity securities (common stocks, mutual funds and non-redeemable preferred stock) are classified as available-for-sale and carried at fair value. Unrealized gains or losses on available-for-sale securities are reported as a component of accumulated other comprehensive income. (d) Fixed maturity securities, trading — Fixed maturity securities classified as trading are carried at estimated fair market value. Gains and losses, both realized and unrealized, are reported in the net realized gain or loss on investment. (e) Equity securities, trading — Equity securities classified as trading are carried at estimated fair market value. Gains and losses, both realized and unrealized, are reported in the net realized gain or loss on investment. (f) Mortgage and asset backed securities — For mortgage and asset backed securities, the Company recognizes income using the retrospective adjustment method based on prepayments and the estimated economic life of the securities. The effective yield reflects actual payments to date plus anticipated future payments. (g) Other investments — Other investments consist primarily of equity investments in limited partnerships, including private equity limited partnerships and real estate partnerships, and investments in term loans. The Company applies the equity method of accounting for its investments in limited partnerships in which its ownership interest of the limited partnership enables the Company to exercise significant influence over the investee, and does not result in a controlling financial interest in the investee. The Company recognizes its proportionate share of the net income of these unconsolidated investees in net investment income. The Company invests in term loans, and recognizes interest income, adjusted for the amortization of premiums and discounts, in net investment income. (h) Derivatives and hedging activities — The Company from time to time invests in a limited amount of derivatives and other financial instruments as part of its investment portfolio. Derivatives are financial arrangements among two or more parties with returns linked to an underlying equity, debt, commodity, asset, liability, foreign exchange rate or other index. Unless subject to a scope exclusion, the Company carries all derivatives on the consolidated balance sheets at fair value. For derivatives that do not qualify for hedge accounting, the changes in fair value of the derivative are presented as a component of earnings. The Company primarily utilizes interest rate swaps, which are valued in terms of the contract between the Company and the issuer of the swaps, are based on the difference between the stated floating rate of the underlying indebtedness, and a predetermined fixed rate for such indebtedness with the result that the indebtedness carries a net fixed interest rate. (i) Securities sold under agreements to repurchase, at contract value — The Company from time to time invests in securities sold under agreements to repurchase, which are accounted for as collateralized borrowing transactions and are recorded at their contracted repurchase amounts, plus accrued interest. The Company minimizes the credit risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring exposure and collateral value and generally requiring additional collateral to be deposited with the Company when necessary. Net investment income consists primarily of interest and dividends less expenses. Interest on fixed maturity securities and term loans, adjusted for the amortization of premiums or discount, is recorded as income when earned. Investment expenses are accrued as incurred. Realized investment gains or losses are computed using the specific costs of securities sold, and, if applicable, include write-downs on investments having other-than-temporary declines in value. Fair Value of Financial Instruments — The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in ASC 820 Fair Value Measurement . The framework is based on the inputs used in valuation and gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. Additionally, valuation of fixed maturity securities is more subjective when markets are less liquid due to lack of market based inputs, which may increase the potential that the estimated fair value of an investment is not reflective of the price at which an actual transaction could occur. For investments that have quoted market prices in active markets, the Company uses the quoted market prices as fair value and includes these prices in the amounts disclosed in the Level 1 hierarchy. The Company receives the quoted market prices from nationally recognized third-party pricing services (“pricing service”). When quoted market prices are unavailable, the Company utilizes a pricing service to determine an estimate of fair value. This pricing method is used, primarily, for fixed maturity securities. The fair value estimates provided by the pricing service are included in the Level 2 hierarchy. If the Company determines that the fair value estimate provided by the pricing service does not represent fair value or if quoted market prices and an estimate from pricing services are unavailable, the Company produces an estimate of fair value based on dealer quotations of the bid price for recent activity in positions with the same or similar characteristics to that being valued or through consensus pricing of a pricing service. Depending on the level of observable inputs, the Company will then determine if the estimate is Level 2 or Level 3. Fixed Maturity securities — The Company utilizes a pricing service to estimate fair value measurements for all of its fixed maturity securities. The pricing service utilizes market quotations for fixed maturity securities that have quoted market prices in active markets. Since fixed maturity securities other than U.S. treasury securities generally do not trade on a daily basis, the pricing service prepares estimates of fair value measurements using relevant market data, benchmark curves, sector groupings and matrix pricing. The pricing service utilized by the Company has indicated it will produce an estimate of fair value only if there is verifiable information to produce a valuation. As the fair value estimates of most fixed maturity investments are based on observable market information rather than market quotes, the estimates of fair value other than U.S. Treasury securities are included in Level 2 of the hierarchy. U.S. Treasury securities are included in the amount disclosed in Level 1 as the estimates are based on unadjusted market prices. The Company’s Level 2 investments include obligations of U.S. government agencies, municipal bonds, corporate debt securities and other mortgage backed securities. Equity Securities — The Company utilizes a pricing service to estimate the fair value of the majority of its available-for-sale and trading equity securities. The pricing service utilizes market quotations for equity securities that have quoted market prices in active markets and their respective quoted prices are provided as fair value. The Company classifies the values of these equity securities as Level 1. The pricing service also provides fair value estimates for certain equity securities whose fair value is based on observable market information rather than market quotes. The Company classifies the value of these equity securities as Level 2. The Company also holds certain equity securities that are issued by privately-held entities or direct equity investments that do not have an active market. The Company estimates the fair value of these securities primarily based on inputs such as third party broker quotes, issuers' book value, market multiples, and other inputs. These equity securities are classified as Level 3 due to significant unobservable inputs used in the valuation. Derivatives — The Company estimates fair value using information provided by a pricing service for interest rate swaps and classifies derivatives as Level 2 hierarchy. Service and Fee Revenue — Service and fee income includes fee revenue for extended warranty and service plans, commission and broker fees, asset management fees, business service fees, administration fees and other service fees. Service and fee income is recognized when the revenue is earned and realized or realizable. The Company considers revenues to be earned and realized or realizable when all of the following four conditions are met: (1) persuasive evidence of an arrangement exists, (2) the arrangement fee is fixed or determinable, (3) delivery or performance has occurred, and (4) collectability is reasonably assured. The Company promotes and markets extended service plans (“ESP”) to consumers through retailers and certain other marketing organizations usually with terms ranging from one to five years, commencing at the expiration of the manufacturers’ warranty, if applicable. The Company generally insures the obligations under ESPs through contractual liability insurance issued by one of its insurance subsidiaries. In addition, under the terms of separate service agreements with various retailers, the Company provides for marketing and administrative services related to ESP. These service agreements are generally for one to five year terms and can be canceled by either party with thirty days' advance notice. The Company recognizes revenue related to administration services on a straight-line basis over the term of the ESP contracts. Warranty fee revenues are reported in service and fee income. Commission and broker fess are generally recognized at the completion of the placement process, which is typically considered complete on the effective date of the related policy. Asset management fees are recognized over time based on a percentage of assets under management. All other business service fees, administration fees and other service fees are recognized at a point in time or over time when earned and realized or realizable. Deferred Policy Acquisition Costs — The Company defers commission expenses, employee compensation and payroll related fringe benefits, premium taxes and assessments as well as underwriting and safety inspection costs that vary with and are primarily related to the successful acquisition of insurance policies. These acquisition costs are capitalized and charged to expense ratably as premiums are earned. The Company may realize deferred policy acquisition costs only if the ratio of loss and loss adjustment expense reserves (calculated on a discounted basis) to the premiums to be earned is less than 100%, as it historically has been. If, hypothetically, that ratio were to be above 100%, the Company could not continue to record deferred policy acquisition costs as an asset and may be required to establish a liability for a premium deficiency reserve. The Company considers anticipated investment income in determining whether a premium deficiency relating to short duration contracts exists. Deferred acquisition costs are presented net of ceding commissions. Reinsurance — Reinsurance agreements that meet the transfer of risk criteria are recorded as prospective reinsurance agreements or retroactive reinsurance agreements based on whether the agreement reinsures future or past reinsured events covered by the underlying insurance contracts. Prospective reinsurance is reinsurance in which a reinsurer agrees to reimburse a ceding entity for losses that may be incurred as a result of future insurable events covered under insurance contracts subject to the reinsurance in exchange for ceded premiums paid to the reinsurer. Retrospective reinsurance is reinsurance in which a reinsurer agrees to reimburse a ceding entity for liabilities incurred as a result of past insurable events covered under insurance contracts subject to the reinsurance in exchange for ceded premiums paid to the reinsurer. Prospective reinsurance premiums, losses and LAE ceded to reinsurers are accounted for on a basis consistent with the accounting for the underlying reinsured contracts. The Company records premiums earned and losses and LAE incurred and ceded to reinsurers as reductions of premium revenue and losses and LAE. The Company accounts for commissions allowed by reinsurers on business ceded as ceding commission, which is a reduction of acquisition costs and other underwriting expenses. The Company earns commissions on reinsurance premiums ceded in a manner consistent with the recognition of the earned premiums on the underlying insurance policies, on a pro rata basis over the terms of the policies reinsured. For retroactive reinsurance agreements, the ceded loss and LAE reserves recorded as reinsurance recoverable in excess the premium for reinsurance is recorded as a deferred gain on retroactive reinsurance, and amortized to earnings using the interest method over the estimated claims settlement period. Any related development on the ceded loss and LAE reserves recoverable under the retroactive reinsurance agreement increases the deferred gain if unfavorable, or decreases the deferred gain if favorable, and a cumulative amortization adjustment based on the change in estimate is recorded to earnings. If the premium for reinsurance exceeds the ceded loss and LAE reserves, or the related favorable development on the ceded loss and LAE reserves entirely offsets the deferred gain on retroactive reinsurance, a loss on retroactive reinsurance is recognized to earnings immediately. Reinsurance recoverable relates to the portion of reserves and paid losses and LAE that are ceded to reinsurers. Reinsurance does not discharge the Company from its primary liability to policyholders, and to the extent that a reinsurer is unable to meet its obligations, the Company is obligated to pay all claims. Amounts recoverable related to ceded loss and LAE reserves with respect to reinsurance agreements are substantially collateralized. The Company continuously monitors the financial condition of prospective and existing reinsurers. As a result, the Company purchases reinsurance from a number of financially strong reinsurers. The Company provides an allowance for reinsurance balances deemed uncollectible. Ceding Commissions on Reinsurance Transactions — Ceding commissions on reinsurance transactions are commissions the Company receives from ceding gross written premiums to third party reinsurers. In connection with the Maiden Quota Share, which is the Company's primary source of ceding commissions, the amount the Company receives is a blended rate based on a contractual formula contained in the individual reinsurance agreements, and the rate may not correlate specifically to the cost structure of the individual segments. The ceding commissions the Company receives cover a portion of its capitalized direct acquisition costs and a portion of other underwriting expenses. Ceding commissions received from reinsurance transactions that represent recovery of capitalized direct acquisition costs are recorded as a reduction of capitalized unamortized deferred acquisition costs and the net amount is charged to expense in proportion to net earned premiums. Ceding commissions received from reinsurance transactions that represent the recovery of other underwriting expenses are recognized in the consolidated statements of operations over the insurance contract period in proportion to the insurance protection provided and classified as a reduction of acquisition costs and other underwriting expenses. Ceding commissions received, but not yet earned, that represent the recovery of other underwriting expenses are classified as a component of accrued expenses and other current liabilities. The Company allocates ceding commissions to its segments based on each segment’s proportionate share of ceded unearned premiums. Assessments — Insurance related assessments are accrued in the period in which they have been incurred. A typical obligating event would be the issuance of an insurance policy or the occurrence of a claim. The Company is subject to a variety of assessments, such as assessments by state guaranty funds and workers’ compensation second injury funds. State guaranty funds assessments are used by state insurance regulators to cover losses of policyholders of insolvent insurance companies and for the operating expenses of such agencies. The Company uses estimated assessment rates in determining the appropriate assessment expense and accrual. The Company uses estimates derived from state regulators and/or National Association of Insurance Commissioners (“NAIC”) Tax and Assessments Guidelines. Assessment expense for the years ended December 31, 2017, 2016 and 2015 was approximately $22,189 , $36,144 and $25,866 , respectively. Business Combinations — The Company accounts for business combinations under the acquisition method of accounting, which requires the Company to record assets acquired, liabilities assumed and any non-controlling interest in the acquiree at their respective fair values as of the acquisition date in the Company's consolidated financial statements. The Company accounts for the insurance and reinsurance contracts under the acquisition method as new contracts, which requires the Company to record assets and liabilities at fair value. The Company adjusts the fair value loss and LAE reserves by recording the acquired loss reserves based on the Company’s existing accounting policies and then discounting them based on expected reserve payout patterns using a current risk-free rate of interest. This risk free interest rate is then adjusted based on different cash flow scenarios that use different payout and ultimate reserve assumptions deemed to be reasonably possible based upon the inherent uncertainties present in determining the amount and timing of payment of such reserves. The difference between the acquired loss and LAE reserves and the Company’s best estimate of the fair value of such reserves at the acquisition date is recorded either as an intangible asset or another liability, as applicable, and amortized proportionately to the decrease in the acquired loss and LAE reserves over the payout period for the acquired loss and LAE reserves. The Company records the fair value of unearned premiums based on the cash flows of the unexpired portion of the acquired insurance contracts. The Company records contingent consideration at fair value based on the terms of the purchase agreement with subsequent changes in fair value recorded through earnings. The determination of fair value may require management to make significant estimates and assumptions. The purchase price is the fair value of the total consideration conveyed to the seller and the Company records the excess of the purchase price over the fair value of the acquired net assets, where applicable, as goodwill. The Company assigns fair values to intangible assets based on valuation techniques including the income and market approaches. Transaction costs associated with the acquisition of a business are expensed as incurred. The Company includes the results of operations of an acquired business in its consolidated financial statements from the date of the acquisition. Goodwill and Intangible Assets — The Company accounts for goodwill and intangible assets in accordance with ASC 350 Intangibles — Goodwill and Other. The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, Business Combinations , which requires an acquirer to assign values to the acquired assets and liabilities based on their fair value. In the event that a purchase price paid is in excess of the net assets acquired, any unidentified excess is deemed to be goodwill. Goodwill is not amortized. Additionally, as a result of an acquisition, the Company may obtain identifiable intangible assets. Indefinite lived intangible assets are not amortized. Intangible assets with a finite life are amortized over the estimated useful life of the asset. Goodwill and intangible assets with an indefinite useful life are tested for impairment on an annual basis or more frequently if changes in circumstances indicate that the carrying amount may not be recoverable. If the goodwill or intangible asset is impaired, it is written down to its realizable value with a corresponding expense reflected in the consolidated statements of operations. The Company tests for impairment of goodwill at the reporting unit level. The Company generally combines reporting units, which are a component of an operating segment when they have similar economic characteristics, nature of services, types of customer, distribution methods and regulatory environment. The Company had six reporting units as of December 31, 2017 . Property, Equipment and Software — Property, equipment and software is recorded at cost. Maintenance and repairs are expensed as incurred. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, as follows: Building 40 years Equipment 5 to 7 years Computer equipment and software 3 to 20 years (primarily 3 years) Leasehold improvements Lesser of lease term or 15 years The Company accounts for its internal use software under ASC 350 Intangibles — Goodwill and Other . Accordingly, the Company capitalizes costs of computer software developed or obtained for internal use that is specifically identifiable, has determinable lives and relates to enhancements in functionality. Equalization reserves — The Company owns one Luxembourg-domiciled reinsurance entity. In connection with this entity, the Company acquired cash and equalization reserves of the reinsurance company. An equalization reserve is a catastrophe reserve established in excess of required reserves as established by the laws of Luxembourg. Equalization reserves are required to be established for Luxembourg statutory and tax purposes, but are not recognized under U.S. GAAP. The equalization reserves were originally established by the seller of the reinsurance entity, and under Luxembourg law allowed the reinsurance company to reduce its income tax paid. Income Taxes — The Company files a consolidated U.S. income tax return for its eligible domestic subsidiaries. The Company's non-domestic subsidiaries file income tax returns in their respective local jurisdictions. As part of the U.S. consolidated income tax return filing, the Company is party to federal income tax allocation agreements amongst the includible entities. Under the tax allocation agreements, the Company pays to or receives from its subsidiaries the amount, if any, by which the group’s federal income tax liability was affected by virtue of inclusion of the subsidiary in the consolidated federal return. Deferred income taxes reflect the impact of “temporary differences” between the amount of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. The deferred tax asset primarily consists of book versus tax differences for premiums earned, loss and loss adjustment expense reserve discounting, policy acquisition costs, and net operating losses. Changes in deferred income tax assets and liabilities that are associated with components of other comprehensive income, primarily unrealized investment gains and losses, are recorded directly to other comprehensive income. Otherw |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments (a) Available-for-Sale Securities The amortized cost, gross unrealized gains and losses, and the estimated fair value in fixed maturity and equity securities of our securities classified as available-for-sale are presented in the tables below: As of December 31, 2017 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturity securities: U.S. treasury securities $ 301,596 $ 852 $ (3,203 ) $ 299,245 U.S. government agencies 51,111 7 (593 ) 50,525 Municipal bonds 1,035,552 15,853 (5,878 ) 1,045,527 Foreign government 151,376 3,549 (3,191 ) 151,734 Corporate bonds: Finance 1,733,245 48,060 (11,894 ) 1,769,411 Industrial 2,236,966 57,253 (26,064 ) 2,268,155 Utilities 323,782 10,886 (2,246 ) 332,422 Commercial mortgage backed securities 419,279 3,811 (10,358 ) 412,732 Residential mortgage backed securities: Agency backed 562,043 5,779 (11,393 ) 556,429 Non-agency backed 6,870 7 (100 ) 6,777 Collateralized loan / debt obligations 591,198 9,666 (333 ) 600,531 Asset backed securities 30,080 72 (117 ) 30,035 Less: Assets classified as held for sale (See Note 27) (34,363 ) (910 ) 40 (35,233 ) Total fixed maturity securities $ 7,408,735 $ 154,885 $ (75,330 ) $ 7,488,290 Equity securities: Preferred stock $ 499 $ — $ (22 ) $ 477 Common stock 93,081 24,099 (2,962 ) 114,218 Total equity securities $ 93,580 $ 24,099 $ (2,984 ) $ 114,695 As of December 31, 2016 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturity securities: U.S. treasury securities $ 331,036 $ 1,235 $ (1,617 ) $ 330,654 U.S. government agencies 63,467 282 (17 ) 63,732 Municipal bonds 860,444 9,603 (15,877 ) 854,170 Foreign government 149,365 4,237 (726 ) 152,876 Corporate bonds: Finance 1,535,606 38,404 (7,722 ) 1,566,288 Industrial 2,222,843 62,133 (17,115 ) 2,267,861 Utilities 195,607 4,433 (1,210 ) 198,830 Commercial mortgage backed securities 178,092 2,464 (2,562 ) 177,994 Residential mortgage backed securities: Agency backed 1,210,229 13,685 (13,529 ) 1,210,385 Non-agency backed 61,646 586 (1,003 ) 61,229 Collateralized loan / debt obligations 476,767 8,389 (751 ) 484,405 Asset backed securities 29,939 31 (260 ) 29,710 Total fixed maturity securities $ 7,315,041 $ 145,482 $ (62,389 ) $ 7,398,134 Equity securities: Preferred stock $ 4,044 $ — $ (59 ) $ 3,985 Common stock 122,626 12,899 (2,348 ) 133,177 Total equity securities $ 126,670 $ 12,899 $ (2,407 ) $ 137,162 Proceeds from the sale of investments in available-for-sale securities during the years ended December 31, 2017, 2016 and 2015 were approximately $2,759,085 , $1,597,357 and $1,274,502 , respectively. A summary of the Company’s available-for-sale fixed securities as of December 31, 2017 and 2016 , by contractual maturity, is shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2017 December 31, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 228,107 $ 226,651 $ 319,275 $ 319,882 Due after one through five years 1,811,295 1,845,531 2,956,429 2,998,711 Due after five through ten years 3,199,736 3,239,839 1,645,211 1,683,112 Due after ten years 594,489 604,997 437,452 432,702 Mortgage and asset backed securities 1,609,471 1,606,505 1,956,674 1,963,727 Less: Assets classified as held for sale (See Note 27) (34,363 ) (35,233 ) — — Total fixed maturity securities $ 7,408,735 $ 7,488,290 $ 7,315,041 $ 7,398,134 There were no OTTI charges of our fixed maturity and equity securities classified as available-for-sale and other investments for the year ended December 31, 2017. Amounts for the years ended December 31, 2016 and 2015 are shown in the table below: Year Ended December 31, 2016 2015 Equity securities recognized in earnings $ 21,028 $ 1,276 Fixed maturity securities recognized in earnings 4,191 17,879 Other invested assets 6,440 — Total OTTI charges $ 31,659 $ 19,155 A progression of the credit portion of other-than-temporary impairments on fixed maturity securities for which the non-credit portion of an impairment has been recognized in other comprehensive income for the years ended December 31, 2017, 2016 and 2015 is shown in the table below: Year Ended December 31, 2017 2016 2015 Credit losses as of the beginning of the year $ 13,367 $ 21,521 $ 8,039 Credit losses on securities for which an OTTI was not previously recognized — 31,659 19,155 Reductions for securities sold, matured, or called (10,697 ) (39,813 ) (5,673 ) Credit losses as of the end of the year $ 2,670 $ 13,367 $ 21,521 See Note 2. "Significant Accounting Policies" for additional information on how the Company tests securities for OTTI. The following tables summarize the gross unrealized losses of our fixed maturity and equity securities by length of time the security has continuously been in an unrealized loss position as of December 31, 2017 and 2016 : Less Than 12 Months 12 Months or More Total As of December 31, 2017 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: U.S. treasury securities $ 41,931 $ (543 ) $ 247,035 $ (2,660 ) $ 288,966 $ (3,203 ) U.S. government agencies 48,744 (579 ) 469 (14 ) 49,213 (593 ) Municipal bonds 171,328 (2,675 ) 178,738 (3,203 ) 350,066 (5,878 ) Foreign government 57,399 (2,174 ) 17,093 (1,017 ) 74,492 (3,191 ) Corporate bonds: Finance 419,332 (9,669 ) 91,515 (2,225 ) 510,847 (11,894 ) Industrial 437,126 (16,372 ) 255,384 (9,692 ) 692,510 (26,064 ) Utilities 72,518 (2,104 ) 11,949 (142 ) 84,467 (2,246 ) Commercial mortgage backed securities 81,498 (4,033 ) 157,458 (6,325 ) 238,956 (10,358 ) Residential mortgage backed securities: Agency backed 91,699 (4,655 ) 167,757 (6,738 ) 259,456 (11,393 ) Non-agency backed 2,904 (33 ) 812 (67 ) 3,716 (100 ) Collateralized loan / debt obligations 56,754 (266 ) 4,274 (67 ) 61,028 (333 ) Asset-backed securities 7,101 (22 ) 3,138 1 (95 ) 10,239 (117 ) Total fixed maturity securities $ 1,488,334 $ (43,125 ) $ 1,135,622 $ (32,245 ) $ 2,623,956 $ (75,370 ) Equity securities: Preferred stock $ 477 $ (22 ) $ — $ — $ 477 $ (22 ) Common stock 16,527 (2,960 ) 119 (2 ) 16,646 (2,962 ) Total equity securities $ 17,004 $ (2,982 ) $ 119 $ (2 ) $ 17,123 $ (2,984 ) Less Than 12 Months 12 Months or More Total As of December 31, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: U.S. treasury securities $ 293,155 $ (1,613 ) $ 22,989 $ (4 ) $ 316,144 $ (1,617 ) U.S. government agencies 7,866 (17 ) — — 7,866 (17 ) Municipal bonds 519,578 (15,207 ) 15,742 (670 ) 535,320 (15,877 ) Foreign government 128,863 (688 ) 12,659 (38 ) 141,522 (726 ) Corporate bonds: Finance 1,071,982 (7,210 ) 16,840 (512 ) 1,088,822 (7,722 ) Industrial 1,200,129 (13,648 ) 114,035 (3,467 ) 1,314,164 (17,115 ) Utilities 119,488 (423 ) 10,391 (787 ) 129,879 (1,210 ) Commercial mortgage backed securities 71,780 (1,654 ) 10,910 (908 ) 82,690 (2,562 ) Residential mortgage backed securities: Agency backed 718,098 (13,469 ) 8,144 (60 ) 726,242 (13,529 ) Non-agency backed 24,372 (869 ) 4,462 (134 ) 28,834 (1,003 ) Collateralized loan / debt obligations 97,923 (433 ) 32,937 (318 ) 130,860 (751 ) Asset-backed securities 9,220 (124 ) 4,926 (136 ) 14,146 (260 ) Total fixed maturity securities $ 4,262,454 $ (55,355 ) $ 254,035 $ (7,034 ) $ 4,516,489 $ (62,389 ) Equity securities: Preferred stock $ 529 $ (30 ) $ — $ (29 ) $ 529 $ (59 ) Common stock 46,254 (1,394 ) 9,991 (954 ) 56,245 (2,348 ) Total equity securities $ 46,783 $ (1,424 ) $ 9,991 $ (983 ) $ 56,774 $ (2,407 ) There were 2,113 and 2,125 individual securities as of December 31, 2017 and 2016 , respectively, that account for the gross unrealized loss, none of which is deemed by the Company to be OTTI. As of December 31, 2017 , the Company has determined that the unrealized losses on fixed maturity securities were primarily due to market interest rate movements since their date of purchase. As of December 31, 2017 , for the $32,247 of unrealized losses related to securities in unrealized loss positions for a period of twelve or more consecutive months, none were related to securities in unrealized loss positions greater than or equal to 20% of amortized cost or cost. The net unrealized gains (losses) on available-for-sale securities for the years ended December 31, 2017, 2016 and 2015 were as follows: Year Ended December 31, 2017 2016 2015 Fixed maturity securities $ 79,555 $ 83,093 $ (48,245 ) Equity securities 21,115 10,492 (4,849 ) Total net unrealized gains (losses) 100,670 93,585 (53,094 ) Deferred income tax (expense) benefit (22,978 ) (27,756 ) 18,583 Cumulative net unrealized gains (losses), net of tax $ 77,692 $ 65,829 $ (34,511 ) Increase (decrease) in net unrealized gains, net of deferred income tax $ 11,863 $ 100,340 $ (108,024 ) (b) Trading Securities The original or amortized cost, estimated fair value and gross unrealized gains and losses of trading securities as of December 31, 2017 and 2016 are presented in the table below: As of December 31, 2017 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturity securities: Corporate bonds: Industrial $ 26,717 $ 124 $ (2,389 ) $ 24,452 Finance 500 1 — 501 U.S. treasury securities 24,954 16 (102 ) 24,868 Total fixed maturity securities $ 52,171 $ 141 $ (2,491 ) $ 49,821 Equity securities: Common stock $ 102,342 $ 6,492 $ (11,798 ) $ 97,036 As of December 31, 2016 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturity securities: Corporate bonds: Industrial $ 24,151 $ 4,379 $ — $ 28,530 Utilities 4,930 322 — 5,252 Total fixed maturity securities $ 29,081 $ 4,701 $ — $ 33,782 Equity securities: Common stock $ 76,163 $ 9,842 $ (4,045 ) $ 81,960 Proceeds from the sale of investments in trading securities during the years ended December 31, 2017, 2016, and 2015 were approximately $449,241 , $237,834 and $207,992 and respectively. The table below presents the portion of trading gains and losses for the period related to trading securities still held for the years ended December 31, 2017, 2016 and 2015 : Year Ended December 31, 2017 2016 2015 Net (losses) and gains recognized during the period on trading securities $ (15,157 ) $ 14,896 $ 10,037 Less: Net (losses) and gains recognized during the period on trading securities sold during the period (6,517 ) (9,869 ) (5,448 ) Unrealized (losses) and gains recognized during the reporting period on trading securities still held at the reporting date $ (8,640 ) $ 24,765 $ 15,485 (c) Investment Income Net investment income for the years ended December 31, 2017, 2016 and 2015 was derived from the following sources: Year Ended December 31, 2017 2016 2015 Fixed maturity securities, available-for-sale $ 245,281 $ 203,998 $ 152,663 Equity securities, available-for-sale 2,287 2,795 2,784 Fixed maturity securities, trading 1,935 — — Equity securities, trading (155 ) 22 (982 ) Cash and short term investments 8,447 6,732 3,718 Other invested assets (1) (20,679 ) — — Total investment income 237,116 213,547 158,183 Investment expenses and interest expense on securities sold under agreement to repurchase (9,613 ) (5,500 ) (1,893 ) Net investment income $ 227,503 $ 208,047 $ 156,290 (1) Includes losses from equity investments. (d) Realized Gains and Losses The tables below summarize the gross realized gains and (losses) for the years ended December 31, 2017, 2016 and 2015 . Year Ended December 31, 2017 Gross Realized Gains Gross Realized Losses Net Realized Gains (Losses) Fixed maturity securities, available-for-sale $ 48,066 $ (6,530 ) $ 41,536 Equity securities, available-for-sale 23,817 (2,512 ) 21,305 Fixed maturity securities, trading 5,417 (7,942 ) (2,525 ) Equity securities, trading 17,064 (29,696 ) (12,632 ) Other invested assets 17,770 (2,319 ) 15,451 Total $ 112,134 $ (48,999 ) $ 63,135 Year Ended December 31, 2016 Gross Realized Gains Gross Realized Losses Net Realized Gains (Losses) Fixed maturity securities, available-for-sale $ 71,291 $ (11,819 ) $ 59,472 Equity securities, available-for-sale 6,578 (13,697 ) (7,119 ) Fixed maturity securities, trading 11,918 (1,184 ) 10,734 Equity securities, trading 21,843 (17,681 ) 4,162 Other invested assets 888 — 888 Other-than-temporary impairment of other invested assets — (6,440 ) (6,440 ) Other-than-temporary impairment of fixed maturity securities, available-for-sale — (4,191 ) (4,191 ) Other-than-temporary impairment of equity securities, available-for-sale — (21,028 ) (21,028 ) Total $ 112,518 $ (76,040 ) $ 36,478 Year Ended December 31, 2015 Gross Realized Gains Gross Realized Losses Net Realized Gain (Losses) Fixed maturity securities, available-for-sale $ 17,828 $ (1,516 ) $ 16,312 Equity securities, available-for-sale 1,563 (2,297 ) (734 ) Equity securities, trading 22,602 (12,565 ) 10,037 Other invested assets 1,657 — 1,657 Other-than-temporary impairment of equity securities, available-for-sale — (17,879 ) (17,879 ) Other-than-temporary impairment of equity securities, trading — (1,276 ) (1,276 ) Total $ 43,650 $ (35,533 ) $ 8,117 On June 9, 2017, the Company announced that it entered into agreements to sell 10,586,000 common shares of National General Holdings Corp. (“NGHC”), a related party, at a price of $20.00 per share (representing a discount of 8.3% to NGHC's common stock closing market price on the Nasdaq Stock Exchange on June 8, 2017). The sale was completed through separate, privately negotiated purchase agreements with unaffiliated third parties and resulted in a $68,425 realized gain, which is reflected in the Equity in earnings of unconsolidated subsidiaries - related parties caption on the consolidated statements of operations. (e) Restricted Cash and Investments The Company, in order to conduct business in certain states, is required to maintain letters of credit or assets on deposit to support state mandated regulatory requirements and certain third party agreements. The Company also utilizes trust accounts to collateralize business with its reinsurance counterparties. These assets held are primarily in the form of cash or certain high grade securities. The fair values of our restricted assets as of December 31, 2017 and 2016 are as follows: December 31, 2017 2016 Restricted cash $ 480,118 $ 713,338 Restricted investments 3,193,838 2,126,216 Total restricted cash and investments $ 3,673,956 $ 2,839,554 (f) Other Securities sold but not yet purchased are securities that the Company has sold, but does not own, in anticipation of a decline in the market value of the security. The Company's risk is that the value of the security will increase rather than decline. Consequently, the settlement amount of the liability for securities sold, not yet purchased may exceed the amount recorded in the consolidated balance sheet as the Company is obligated to purchase the securities sold, not yet purchased in the market at prevailing prices to settle the obligations. To establish a position in security sold, not yet purchased, the Company needs to borrow the security for delivery to the buyer. When the transaction is open, the liability for the obligation to replace the borrowed security is marked to market and an unrealized gain or loss is recorded. At the time the transaction is closed, the Company realizes a gain or loss equal to the differences between the price at which the security was sold and the cost of replacing the borrowed security. While the transaction is open, the Company will also incur an expense for any dividends or interest which will be paid to the lender of the securities. The Company’s liability for securities to be delivered is measured at their fair value and was $75,462 and $36,394 as of December 31, 2017 and 2016 , respectively. The securities sold but not yet purchased consisted primarily of equity and fixed maturity securities. From time to time, the Company enters into repurchase agreements that are subject to a master netting arrangement, which are accounted for as collateralized borrowing transactions and are recorded at contract amounts. The Company receives cash or securities that it invests or holds in short term or fixed maturity securities. As of December 31, 2017 , the Company had no repurchase agreements outstanding. As of December 31, 2016 , the Company had 13 repurchase agreements with an outstanding principal amount of $160,270 , which approximates fair value, at interest rates between 0.75% and 0.90% . The Company had approximately $175,700 of collateral pledged in support of the agreements outstanding as of December 31, 2016 . Interest expense associated with repurchase agreements for the years ended December 31, 2017 and 2016 was $1,715 and $554 , respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair Value Hierarchy The following tables present the level within the fair value hierarchy at which the Company’s financial assets and financial liabilities are measured on a recurring basis as of December 31, 2017 and 2016 : As of December 31, 2017 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. treasury securities $ 324,113 $ 324,113 $ — $ — U.S. government securities 50,525 — 50,525 — Municipal bonds 1,045,527 — 1,045,100 427 Foreign government 151,734 — 151,734 — Corporate bonds and other bonds: Finance 1,769,912 — 1,769,912 — Industrial 2,292,607 — 2,292,607 — Utilities 332,422 — 332,422 — Commercial mortgage backed securities 412,732 — 389,831 22,901 Residential mortgage backed securities: Agency backed 556,429 — 556,429 — Non-agency backed 6,777 — 6,777 — Collateralized loan / debt obligations 600,531 — 600,531 — Asset-backed securities 30,035 — 29,242 793 Equity securities: Equity securities, available-for-sale 114,695 114,211 7 477 Equity securities, trading 97,036 96,555 481 — Short term investments 187,793 — 187,793 — Other investments 5,000 — — 5,000 Life settlement contracts 20,808 — — 20,808 Less: Fixed maturity securities classified as held for sale (see Note 27) (35,233 ) — (35,233 ) — Total financial assets (1) $ 7,963,443 $ 534,879 $ 7,378,158 $ 50,406 Financial Liabilities Securities sold but not yet purchased $ 75,462 $ 70,724 $ 4,738 $ — Life settlement contract profit commission 3,169 — — 3,169 Contingent consideration 75,367 — — 75,367 Total financial liabilities (2) $ 153,998 $ 70,724 $ 4,738 $ 78,536 (1) Does not include assets held for sale of $900,903 carried at fair value and classified as Level 2 within the fair value hierarchy as of December 31, 2017. See Note 27. "Divestitures" for additional information. (2) Does not include liabilities held for sale of $761,679 carried at fair value and classified as Level 2 within the fair value hierarchy as of December 31, 2017. See Note 27. "Divestitures" for additional information. As of December 31, 2016 Total Level 1 Level 2 Level 3 Financial Assets Fixed Maturity Securities: U.S. treasury securities $ 330,654 $ 330,654 $ — $ — U.S. government securities 63,732 — 63,732 — Municipal bonds 854,170 — 854,170 — Foreign government 152,876 — 149,298 3,578 Corporate bonds and other bonds: Finance 1,566,288 — 1,559,800 6,488 Industrial 2,296,391 — 2,291,351 5,040 Utilities 204,082 — 199,503 4,579 Commercial mortgage backed securities 177,994 — 177,994 — Residential mortgage backed securities: Agency backed 1,210,385 — 1,186,315 24,070 Non-agency backed 61,229 — 58,109 3,120 Collateralized loan / debt obligations 484,405 — 484,405 — Asset-backed securities 29,710 — 29,710 — Equity Securities: Equity securities, available-for-sale 137,162 66,228 49,618 21,316 Equity securities, trading 81,960 78,827 — 3,133 Life settlement contracts 356,856 — — 356,856 Total financial assets $ 8,007,894 $ 475,709 $ 7,104,005 $ 428,180 Financial Liabilities Securities sold but not yet purchased $ 36,394 $ 36,394 $ — $ — Securities sold under agreements to repurchase 160,270 — 160,270 — Life settlement contract profit commission 4,940 — — 4,940 Contingent consideration 71,657 — — 71,657 Derivatives 243 — 243 — Total financial liabilities $ 273,504 $ 36,394 $ 160,513 $ 76,597 Transfers between Level 1 and Level 2 for all periods presented are due to changes in the availability of observable market information and re-evaluation of the observability of pricing inputs. During the year ended December 31, 2017, $35,818 was transferred from Level 2 to Level 1. There were no significant transfers between Level 1 and Level 2 during the years ended December 31, 2016 and 2015. The following tables provide a summary of changes in fair value of the Company’s Level 3 financial assets and liabilities for the years ended December 31, 2017 and 2016 : The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. All transfers are reflected in the table at fair value as of the end of the reporting period. Balance as of January 1, 2017 Net income (loss) Other comprehensive loss Purchases and issuances Sales and settlements Net transfers (out of) into Level 3 Balance as of December 31, 2017 Fixed maturity securities, available-for-sale $ 46,875 $ 327 $ (1,013 ) $ 9,459 $ (8,740 ) $ (22,787 ) $ 24,121 Fixed maturity securities, trading — 1,992 — — (2,304 ) 312 — Equity securities, trading 3,133 (400 ) — 4,484 (3,834 ) (3,383 ) — Equity securities, available-for-sale 21,316 566 (186 ) 613 (38,198 ) 16,366 477 Other investments — — — 5,000 — — 5,000 Life settlement contracts 356,856 59,821 — 16,473 (412,342 ) — 20,808 Life settlement contract profit commission (4,940 ) 1,771 — — — — (3,169 ) Contingent consideration (71,656 ) 7,585 — (29,420 ) 18,124 — (75,367 ) Total $ 351,584 $ 71,662 $ (1,199 ) $ 6,609 $ (447,294 ) $ (9,492 ) $ (28,130 ) Balance as of January 1, 2016 Net income (loss) Other comprehensive income Purchases and Sales and Net transfers Balance as of December 31, 2016 Fixed maturity securities , available-for-sale $ — $ — $ 296 $ 12,901 $ — $ 33,678 $ 46,875 Equity securities, trading — — 1,394 1,739 — — 3,133 Equity securities, available-for-sale 37,211 (25,484 ) 5,042 511 (16,364 ) 20,400 21,316 Life settlement contracts 264,001 123,872 — 17,230 (48,247 ) — 356,856 Life settlement contract profit commission (15,406 ) (9,940 ) — — 20,406 — (4,940 ) Contingent consideration (84,760 ) (7,870 ) — (14,760 ) 35,734 — (71,656 ) Total $ 201,046 $ 80,578 $ 6,732 $ 17,621 $ (8,471 ) $ 54,078 $ 351,584 A reconciliation of net income for life settlement contracts in the above table to gain on investment in life settlement contracts net of profit commission included in the consolidated statements of operations for the years ended December 31, 2017 and 2016 is as follows: Year Ended December 31, 2017 2016 Net income (1) $ 59,821 $ 123,872 Premium paid (59,576 ) (65,098 ) Profit commission 1,771 (9,940 ) Other expenses (4,460 ) (2,687 ) (Loss) gain on investment in life settlement contracts $ (2,444 ) $ 46,147 (1) Includes loss on sale of life settlement contracts of $25,104 for the year ended December 31, 2017 . The Company uses the following methods and assumptions in estimating its fair value disclosures for financial instruments: • Equity and Fixed Maturity Investments: Fair value disclosures for these investments are disclosed elsewhere in Note 2. “Significant Accounting Policies”. As of December 31, 2017 , the Company's Level 3 equity securities consisted primarily of privately placed warrants of companies that have publicly traded common stock. The fair value of these equity securities as of December 31, 2017 was derived from the quoted price of the underlying common stock adjusted for other inputs that are not market observable. • Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Short Term Investments: The carrying value of cash and cash equivalents, restricted cash and cash equivalents, and short term investments approximate their respective fair value and are classified as Level 1 in the fair value hierarchy. • Premiums Receivable, Accrued Interest, Reinsurance Recoverables: The carrying values reported in the accompanying balance sheets for these financial instruments approximate their fair values due to the short term nature of the asset and are classified as Level 1 in the financial hierarchy. • Equity Investment in Unconsolidated Subsidiaries - Related Party: Prior to June 2017, the Company had an ownership percentage of approximately 12% in NGHC, a publicly-held insurance holding company (Nasdaq: NGHC). The Company accounted for this investment under the equity method of accounting as it had the ability to exert significant influence on NGHC. The fair value and the carrying value of the investment was approximately $307,263 and $151,332 , respectively, as of December 31, 2016. In June 2017, the Company sold 10,586,000 common shares of NGHC. As a result of the sale, the Company ceased accounting for this investment under the equity method of accounting and has classified the remaining $33,573 investment in NGHC, or 1,709,430 common shares, as equity securities, available-for-sale. Refer to Note 3. "Investments", and Note 15. "Related Party Transactions" for more information. • Subordinated Debentures and Debt: The fair value of the Company's debt arrangements as of December 31, 2017 was as follows: December 31, 2017 Carrying Value Fair Value Revolving credit facility $ 130,000 $ 130,000 5.5% Convertible senior notes due 2021 5,363 5,363 2.75% Convertible senior notes due 2044 172,958 172,290 6.125% Senior notes due 2023 248,458 245,247 Junior subordinated debentures due 2035-2037 122,116 110,410 Trust preferred securities due 2033-2037 92,786 86,137 7.25% Subordinated Notes due 2055 145,327 150,000 7.50% Subordinated Notes due 2055 130,795 139,806 Secured loan agreements 174,414 174,414 Promissory notes 66,504 66,929 Total debt $ 1,288,721 $ 1,280,596 The 7.25% subordinated notes due 2055, the 7.50% subordinated notes due 2055, the 2.75% convertible senior notes due 2044, and the 6.125% senior notes due 2023 are publicly traded instruments and are classified as Level 1 in the fair value hierarchy. The fair value of the junior subordinated debentures due 2035-2037 and Republic's trust preferred securities due 2033-2037 were determined using the Black-Derman-Toy interest rate lattice model and are classified as Level 3 in the fair value hierarchy. In determining the fair value of its remaining debt, the Company uses estimates based on rates currently available for debt with similar terms and remaining maturities. Accordingly, the fair value of the Republic promissory note and other debt is classified as Level 2 within the valuation hierarchy. The Company considers its other debt's carrying value to approximate fair value as their interest rates approximate current borrowing rates. • Contingent Consideration : The fair value of contingent consideration is based on a discounted cash flow methodology and is classified as Level 3 in the fair value hierarchy. The range of discount rates used for contingent consideration was primarily between 8% and 30% . • Life Settlement Contracts and Life Settlement Contract Profit Commission: The fair value of life settlement contracts as well as life settlement profit commission liability is based on information available to the Company at the end of the reporting period. These financial instruments are classified as Level 3 in the fair value hierarchy. The Company considers the following factors in its fair value estimates: cost at date of purchase, recent purchases and sales of similar investments (if available and applicable), financial standing of the issuer, changes in economic conditions affecting the issuer, maintenance cost, premiums, benefits, standard actuarially developed mortality tables and life expectancy reports prepared by nationally recognized and independent third party medical underwriters. The Company estimates the fair value of policies in the portfolio based on the expected cash flow to be generated by the policies (death benefits less premium payments), discounted to reflect the cost of funding, policy specific adjustments and reserves. In order to confirm the integrity of their calculation of fair value, the Company, quarterly, retains an independent third-party actuary to verify that the actuarial modeling used by the Company to determine fair value was performed correctly and that the valuation, as determined through the Company's actuarial modeling, is consistent with other methodologies. The Company considers this information in its assessment of the reasonableness of the life expectancy and discount rate inputs used in the valuation of these investments. The Company adjusts the standard mortality for each insured for the insured's life expectancy based on reviews of the insured's medical records and the independent life expectancy reports based thereon. The Company establishes policy specific reserves for the following uncertainties: improvements in mortality, the possibility that the high net worth individuals represented in its portfolio may have access to better health care, the volatility inherent in determining the life expectancy of insureds with significant reported health impairments, and the future expenses related to the administration of the portfolio, which incorporates current life expectancy assumptions, premium payments, the credit exposure to the insurance company that issued the life settlement contracts and the rate of return that a buyer would require on the contracts as no comparable market pricing is available. The application of the investment discount rate to the expected cash flow generated by the portfolio, net of the policy specific reserves, yields the fair value of the portfolio. The effective discount rate reflects the relationship between the fair value and the expected cash flow gross of these reserves. During 2017, the Company sold all but six of its life settlement contracts with an aggregate fair value of $20,808 as of December 31, 2017 . Refer to Note 6. "Investment in Life Settlements", for more information. The following table summarizes data utilized in estimating the fair value of the portfolio of life insurance policies as of December 31, 2017 and 2016 and, as described in Note 6. “Investment in Life Settlements”, only includes data for policies to which the Company assigned value at those dates: December 31, 2017 2016 Average age of insured 86.1 82.8 Average life expectancy, months (1) 74 107 Average face amount per policy (Amounts in thousands) $ 9,500 $ 6,572 Effective discount rate (2) 12.0 % 12.4 % (1) Standard life expectancy as adjusted for specific circumstances. (2) Effective discount rate (“EDR”) is the Company's estimated internal rate of return on its life settlement contract portfolio and is determined from the gross expected cash flows and valuation of the portfolio. The EDR is inclusive of the reserves and the gross expected cash flows of the portfolio. The Company anticipates that the EDR's range is between 10% and 15% and reflects the uncertainty that exists surrounding the information available as of the reporting date. As the accuracy and reliability if information improves (declines), the EDR will decrease (increase). The change in the EDR from December 31, 2016 to December 31, 2017 resulted from routine updating of life expectancies and other factors relating to operational risk. The Company's assumptions are, by their nature, inherently uncertain and the effect of changes in estimates may be significant. The fair value measurements used in estimating the present value calculation are derived from valuation techniques generally used in the industry that include inputs for the asset that are not based on observable market data. The extent to which the fair value could reasonably vary in the near term has been quantified by evaluating the effect of changes in significant underlying assumptions used to estimate the fair value amount. If the life expectancies were increased or decreased by 4 months and the discount factors were increased or decreased by 1% while all other variables are held constant, the carrying value of the investment in life insurance policies would increase or (decrease) by the unaudited amounts summarized below for the years ended December 31, 2017 and 2016 : Change in life expectancy Plus 4 Months Minus 4 Months Investment in life policies: December 31, 2017 $ (1,843 ) $ 1,546 December 31, 2016 $ (44,207 ) $ 43,492 Change in discount rate (1) Plus 1% Minus 1% Investment in life policies: December 31, 2017 $ (1,263 ) $ 1,368 December 31, 2016 $ (29,881 ) $ 33,155 (1) Discount rate is a present value calculation that considers legal risk, credit risk and liquidity risk and is a component of EDR. Non-recurring fair value measurements Assets and liabilities that are measured at fair value on a non-recurring basis include intangible assets and goodwill, which are recognized at fair value during the period in which an acquisition is completed, from updated estimates and assumptions during the measurement period, or when they are considered to be impaired. These non-recurring fair value measurements, primarily for intangible assets acquired, were based on Level 3 unobservable inputs. In the event of an impairment, the Company determines the fair value of the goodwill and intangible assets using a discounted cash flow approach or price to invested assets multiple, which contain significant unobservable inputs and therefore is considered a Level 3 fair value measurement. The unobservable inputs in the analysis generally include future cash flow projections and a discount rate. See Note 7. "Intangible Assets and Goodwill", for additional information on how the Company tests goodwill for impairment. The Company recognized non-recurring fair value adjustments related to impairment of intangible assets of $1,029 , $1,450 and $2,060 during 2017, 2016 and 2015, respectively, and a non-recurring adjustment related to impairment to goodwill of $55,304 during the year ended December 31, 2015. Additionally, there were certain adjustments to the initial fair value estimates of the assets and liabilities assumed at the acquisition date (as disclosed in Note 5. "Acquisitions" to these consolidated financial statements) from updated estimates and assumptions during the measurement period. The measurement period may be up to one year from the acquisition date. The Company records any measurement period adjustments to the fair value of assets acquired and liabilities assumed, with the corresponding offset to goodwill. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions The Company accounts for acquisitions pursuant to the acquisition method. In applying the acquisition method, the Company records the identifiable assets acquired and liabilities assumed at fair value and records the excess of the consideration paid over the value of the identified net assets acquired as goodwill. The Company assigns fair values to intangible assets based on valuation techniques including the income and market approaches. The following material acquisitions occurred during the years ended December 31, 2017 and 2016 : AmeriHealth Casualty Insurance Company On February 28, 2017, the Company completed its previously announced acquisition of AHC Insurance Company ("AHC"), formerly named AmeriHealth Casualty Insurance Company, a workers’ compensation insurance company operating primarily in Pennsylvania and New Jersey. The Company acquired 100% of the outstanding stock of AHC for $93,969 in cash, which is subject to a reserve guarantee of $40,000 , subject to a 10% loss corridor retained by the Company and payable after five years, based on the development of AHC’s loss reserves as of June 30, 2016. As of December 31, 2017 , the Company had recorded $34,081 related to the reserve guarantee. A summary of the assets acquired and liabilities assumed for AHC are as follows: Assets Cash and investments $ 275,351 Premium receivable 45,288 Accrued interest and dividends 1,162 Reinsurance recoverable 14,512 Other assets 42,622 Goodwill and intangible assets 18,824 Total assets acquired $ 397,759 Liabilities Loss and loss adjustment expense reserves $ 226,922 Unearned premiums 49,285 Accrued expenses and other liabilities 27,583 Total liabilities assumed $ 303,790 Acquisition price $ 93,969 The goodwill and intangible assets, as well as AHC's results of operations, are included as a component of the Small Commercial Business segment. The goodwill is not deductible for income tax purposes. The intangible assets consist primarily of agent relationships of $2,750 and a non-compete agreement of $1,500 . The agent relationships have a life of ten years and the non-compete agreement has a life of five years . As a result of this acquisition, the Company recorded approximately $95,743 of gross written premiums during the year ended December 31, 2017 . PDP Group, Inc. On May 1, 2017 , the Company acquired 100% of the outstanding common stock of PDP Group Inc. ("PDP"), a Maryland-based provider of tailored insurance solutions for auto dealers in North America. The purchase agreement required the Company to pay $49,801 in cash on the acquisition date and contained an earn-out provision that is contingent on PDP meeting certain performance conditions over a three -year period. The Company valued the contingent consideration associated with the earn-out provision at $12,621 as of the acquisition date. A summary of the assets acquired and liabilities assumed for PDP are as follows: Assets Cash and cash equivalents $ 11,826 Premium receivable 29,188 Other assets 705 Property and equipment, net 776 Goodwill and intangible assets 55,586 Total assets acquired $ 98,081 Liabilities Accrued expenses and other liabilities assumed $ 35,659 Total liabilities $ 35,659 Acquisition price $ 62,422 The goodwill and intangible assets, as well as PDP's results of operations, are included as a component of the Specialty Risk and Extended Warranty segment. The goodwill is not deductible for income tax purposes. The intangible assets consist primarily of agent relationships of $43,000 , trademarks of $2,000 , and a non-compete agreement of $800 . The agent relationships have a life of seventeen years and the non-compete agreement has a life of five years. The trademark has an infinite life. As a result of this acquisition, the Company recorded $29,331 in service and fee income related to PDP during year ended December 31, 2017 . ANV Holdings B.V. On November 7, 2016 , the Company completed the acquisition of ANV Holdings B.V. and its affiliates ("ANV") from Ontario Teachers' Pension Plan for approximately $203,277 in cash. ANV is a specialty insurance company that underwrites a variety of commercial property and casualty insurance products through its three Lloyd's syndicates and managing general underwriter. In addition, the Company now supports ANV's Funds at Lloyd's, which included replacing of Ontario Teachers' Pension Plan's participation. A summary of the assets acquired and liabilities assumed for ANV are as follows: Assets Cash and investments $ 415,968 Premium receivable 166,536 Accrued interest and dividends 635 Reinsurance recoverable 128,595 Other assets 142,786 Deferred tax assets 14,488 Property and equipment, net 11,741 Goodwill and intangible assets 147,235 Total assets acquired $ 1,027,984 Liabilities Loss and loss adjustment expense reserves $ 438,724 Unearned premiums 230,604 Deferred tax liabilities 17,066 Accrued expenses and other liabilities 138,313 Total liabilities assumed $ 824,707 Acquisition price $ 203,277 The goodwill and intangible assets as well as ANV's results of operations are included as a component of the Specialty Risk and Extended Warranty segment. The goodwill is not deductible for income tax purposes. The intangible assets consist primarily of syndicate capacity of $45,000 , agency relationships of $32,000 , and trademarks of $3,000 . The syndicate capacity has an indefinite life and other intangible asset lives range from three to fifteen years. As a result of this acquisition, the Company recorded approximately $644,038 and $85,033 , respectively, of gross written premiums for the years ended December 31, 2017 and 2016 . Trust Risk Group In conjunction with the settlement of a dispute with its former Italian medical liability broker, on July 20, 2016 , the Company obtained renewal rights associated with all the in-force business produced by TRG prior to the termination of the brokerage and agency relationship and a non-compete agreement from TRG and related parties for a period of three years in exchange for €16,000 (or $17,694 as of the acquisition date), as well as the release of a receivable balance due from TRG of €14,000 (or $15,483 as of the acquisition date). The cash consideration at inception of the non-compete agreement was €13,000 (or $14,376 as of the acquisition date), with the remainder of €3,000 (or $3,318 as of the acquisition date) to be paid after a period of three years. In accordance with FASB ASC 805-10 Business Combinations , the Company recorded an acquisition price of €29,800 (or $32,956 as of the acquisition date) for these agreements. The Company determined the fair value of the non-compete agreement to be €17,500 (or $19,353 as of the acquisition date) and the life of the asset to be three years. The fair value of the renewal rights agreement was determined to be €12,000 (or $13,271 at the date of acquisition) and to have a life of four years. The remaining amount of €300 (or $332 as of the acquisition date) was determined to be goodwill and is not deductible for income tax purposes. The goodwill and intangible assets, as well as the results of operations from these agreements, are included as a component of the Specialty Risk and Extended Warranty segment. Nationale Borg On May 31, 2016, the Company completed the acquisition of N.V. Nationale Borg-Maatscappij and its affiliates ("Nationale Borg") for € 163,053 (or $181,478 as of the acquisition date). Nationale Borg is an Amsterdam-based international direct writer and reinsurer of surety and trade credit insurance in over 70 countries that has been in existence for approximately 120 years. A summary of the assets acquired and liabilities assumed for Nationale Borg are as follows: Assets Cash and investments $ 216,801 Premium receivable 5,676 Accrued interest and dividends 83 Reinsurance recoverable 8,587 Other assets 14,734 Property and equipment 10,319 Goodwill and intangible assets 57,319 Total assets acquired $ 313,519 Liabilities Loss and loss adjustment expense reserves $ 78,909 Unearned premiums 24,782 Accrued expenses and other liabilities 28,350 Total liabilities assumed $ 132,041 Acquisition price $ 181,478 The goodwill and intangible assets, as well as Nationale Borg's results of operations, are included as a component of the Specialty Risk and Extended Warranty segment. The goodwill is not deductible for income tax purposes. The intangible assets consist primarily of customer relationships of $19,007 , tradenames of $1,556 , licenses of $389 , software of $778 , and value over business acquired ("VOBA") of $17,437 . The tradenames and licenses have an indefinite life and the other intangible assets have lives ranging from three to fifteen years. As a result of this acquisition, the Company recorded approximately $128,540 and $64,420 , respectively, of gross written premiums for the years ended December 31, 2017 and 2016 . First Nationwide Title Agency On May 20, 2016 , the Company completed the acquisition of First Nationwide Title Agency and its subsidiaries ("First Nationwide"). First Nationwide is a title agency providing title insurance products primarily in the State of New York. The consideration given for First Nationwide consisted of approximately $24,000 at closing and contingent consideration based on profitability of the agency over a five-year period. A summary of the assets acquired and liabilities assumed for First Nationwide are as follows: Assets Cash $ 268 Property and equipment 66 Goodwill and intangible assets 45,632 Total assets acquired $ 45,966 Liabilities Accrued expenses and other liabilities $ 491 Deferred tax liability 6,475 Total liabilities assumed $ 6,966 Acquisition price $ 39,000 The goodwill and intangible assets as well as First Nationwide's results of operations are included as a component of the Specialty Risk and Extended Warranty segment. The goodwill is not deductible for income tax purposes. The intangible assets consist primarily of customer relationships of $14,000 , tradenames of $1,500 , and non-compete agreements of $3,000 . The intangible assets have lives that range from four to seven years. As a result of this acquisition, the Company recorded approximately $23,768 and $12,471 , respectively, of service and fee income for the years ended December 31, 2017 and 2016 . Genworth On May 9, 2016 , the Company completed the acquisition of Genworth Financial Mortgage Insurance Ltd. ("Genworth"). Genworth provides mortgage insurance in Europe, primarily in the U.K., Finland, Italy and Germany. The consideration given for Genworth consisted of cash of approximately $54,500 . A summary of the assets acquired and liabilities assumed for Genworth are as follows: Assets Cash and investments $ 239,695 Reinsurance recoverable 27,570 Other assets 8,422 Property and equipment 964 Total assets acquired $ 276,651 Liabilities Loss and loss adjustment expense reserves $ 84,463 Unearned premiums 76,308 Accrued expenses and other liabilities 13,060 Total liabilities assumed $ 173,831 Acquisition price $ 54,500 Acquisition gain $ 48,320 The Company determined that the fair value of any intangible assets associated with the acquisition were immaterial. Genworth's results of operations are included as a component of the Specialty Risk and Extended Warranty segment. As a result of this acquisition, the Company recorded approximately $18,763 and $17,254 , respectively, of gross written premiums for the years ended December 31, 2017 and 2016 . Republic On April 18, 2016 , the Company completed the acquisition of Republic Companies, Inc. and its affiliates ("Republic") from Delek Group Ltd., and Republic Insurance Holdings, LLC. Republic provides commercial and personal lines property and casualty insurance through independent agents and managing general agents. Republic primarily distributes the majority of its business to individuals and small and medium-size businesses through a network of independent agents in the southwestern U.S. In addition, Republic generates fee revenue by providing insurance services to third parties. The consideration given for Republic consisted of approximately $113,456 of cash at closing, a promissory note payable of approximately $104,685 due to Delek Finance U.S. Inc. and deferred payments of approximately $15,200 that are owed to the minority owners of Republic. Further information on the promissory note can be found in Note 13. "Debt" and elsewhere in this report. The deferred payments will be made in nineteen quarterly installments of $800 and began three months after the acquisition date. The remaining deferred payment liability was $10,400 as of December 31, 2017 . A summary of the assets acquired and liabilities assumed for Republic are as follows: Assets Cash and investments $ 620,700 Premium receivable, net 85,455 Accrued interest and dividends 4,779 Reinsurance recoverable 622,660 Deferred tax assets 28,857 Other assets 223,619 Property and equipment 1,576 Goodwill and intangible assets 131,607 Total assets acquired $ 1,719,253 Liabilities Loss and loss adjustment expense reserves $ 879,356 Unearned premiums 301,972 Trust preferred outstanding 92,786 Accrued expenses and other liabilities 129,116 Funds held under reinsurance treaties 83,331 Total liabilities assumed $ 1,486,561 Acquisition price $ 232,692 The goodwill and intangible assets as well as Republic's results of operations are included as a component of the Small Commercial Business and Specialty Program segments. The goodwill is not deductible for income tax purposes. The intangible assets consist primarily of customer relationships of $40,800 , licenses of $11,400 , and tradenames of $5,200 . The tradenames and licenses have an indefinite life and the customer relationships have lives that range from seven to eight years. For the years ended December 31, 2017 and 2016 , the Company recorded $537,466 and $483,400 , respectively, of gross written premium, $8,201 and $5,853 , respectively, of service and fee income as a result of this acquisition. ARI Insurance Company On January 22, 2016 , the Company completed the acquisition of ARI Holdco Inc. ("ARIH") and its subsidiaries. ARIH's primary operating subsidiary, ARI Insurance Company ("ARI"), is an underwriter of commercial automobile insurance in New Jersey, Pennsylvania and Maryland. Immediately prior to the acquisition, ARI converted from a mutual form to a stock form of ownership in a transaction "sponsored" by the Company. As required by the plan of conversion and applicable Delaware law, the Company offered shares of its common stock, at a discount to the market price, to the members of ARI who held policies as of December 31, 2014 and the directors, officers and employees of ARI and its subsidiaries. The Company received subscriptions for approximately $276 , resulting in the issuance by the Company of 12,347 (on a post-split basis) shares of its common stock at a discounted price of 20% (or approximately $69 in the aggregate) from the Company's market trading price. Pursuant to the stock purchase agreement, after the expiration of the offering, the Company purchased all of the authorized shares of capital stock of ARIH at a purchase price equal to the greater of the gross proceeds received by the Company in the offering, and $3,750 . The Company made a payment to ARIH of $23,500 , which included the $276 in proceeds the Company received in the offering, for the stock of ARI. Additionally, the Company, as part of the transaction, was required to make a payment to an employee bonus pool of ARI of $3,750 . The remaining $23,500 of cash contributed to ARIH was retained by the Company. In accordance with FASB ASC 805-10 Business Combinations , the Company recorded an acquisition price of approximately $3,819 . A summary of the assets acquired and liabilities assumed for ARI are as follows: Assets Cash and investments $ 53,917 Premium receivable, net 15,577 Accrued interest and dividends 375 Reinsurance recoverable 17,554 Other assets 2,116 Intangible assets 1,097 Total assets acquired $ 90,636 Liabilities Loss and loss adjustment expense reserves $ 59,723 Unearned premiums 18,672 Accrued expenses and other liabilities 7,967 Total liabilities assumed $ 86,362 Acquisition price $ 3,819 Acquisition gain $ 455 The intangible assets, as well as ARI's results of operations, are included as a component of the Small Commercial Business segment. The intangible asset consisted of a license with an indefinite life of $250 . As a result of this acquisition, the Company recorded approximately $30,023 and $43,334 , respectively, of gross written premiums for the years ended December 31, 2017 and 2016 , respectively. The Company accounts for business combinations under the acquisition method of accounting and, therefore, increased the acquired loss and loss adjustment expense reserves by approximately $9,744 to their fair value. The Company adjusted the acquired loss and loss adjustment expense reserves to fair value by recording the acquired loss reserves based on the Company’s existing accounting policies and then discounting them based on expected reserve payout patterns using a current risk-free interest rate. This risk-free interest rate was then adjusted based on different cash flow scenarios that use different payout and ultimate reserve assumptions deemed to be reasonably possible based upon the inherent uncertainties present in determining the amount and timing of payment of such reserves. The difference between the acquired loss and loss adjustment expense reserves and the Company’s best estimate of the fair value of such reserves at the acquisition date was recorded as an intangible asset in the amount of approximately $847 and will be amortized proportionately to the decrease in the acquired loss and loss adjustment expense reserves over the payout period for the acquired loss and loss adjustment expense reserves. Other In addition, the Company completed other immaterial acquisitions, the total purchase consideration paid for which was approximately $48,993 and $76,718 , respectively, during the years ended December 31, 2017 and 2016 . No individual acquisition or acquisitions in the aggregate were material and, therefore, the Company is not required to include any pro forma financial information in this report. |
Investment in Life Settlements
Investment in Life Settlements | 12 Months Ended |
Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |
Investment in Life Settlements | Investment in Life Settlements The Company has a 50% ownership interest in each of two entities (collectively, the "LSC Entities") formed for the purpose of acquiring life settlement contracts, with a subsidiary of NGHC owning the remaining 50% . The LSC Entities are: Tiger Capital LLC (“Tiger”); and AMT Capital Holdings, S.A. (“AMTCH”). During 2017 , the LSC Entities acquired seven life settlement contracts for approximately $16,473 and had seven life settlement contracts mature for approximately $48,045 in cash. On August 16, 2017 , the Company sold 114 life settlement contracts from the Tiger portfolio for consideration of $100,000 , which included a payment of $90,000 on the closing date. In addition, a payment of $5,000 is due on the next two anniversaries of the closing date. Tiger paid a dividend to its members of $90,000 , with $45,127 going to NGHC and the remaining portion retained in the Company. On December 28, 2017 , the LSC Entities contributed 136 life settlement contracts to a limited partnership managed and operated by an unrelated third party. The consideration for the transaction included $217,831 of cash (including an advance of $39,724 on future payments from the limited partnership) and the right to receive certain contingent earn-out payments. The LSC Entities have a 30% non-controlling equity interest in the limited partnership while the remaining 70% is held by an unrelated third party. As of December 31, 2017 , the LSC Entities' carrying value of the investment in the limited partnership was $68,085 . As of December 31, 2017 , the LSC Entities directly held six life settlement contracts. One of those six contracts matured during 2018 . The Company recorded a loss on investment in life settlement contracts, net of profit commissions and all expenses incurred by the LSC Entities, of approximately $2,444 for the year ended December 31, 2017 . The Company recorded a gain on investment in life settlement contracts, net of profit commission, of $46,147 and $19,844 for the years ended December 31, 2016 , and 2015 , respectively. The following tables describe the Company’s investment in life settlements as of December 31, 2017 and 2016 : December 31, 2017 December 31, 2016 Expected Maturity Term in Years Life Settlement Contracts Fair Value Face Value Life Settlement Contracts Fair Value (1) Face Value 0 – 1 — $ — $ — — $ — $ — 1 – 2 — — — 2 8,873 12,500 2 – 3 — — — 7 39,495 63,000 3 – 4 1 6,041 10,000 10 37,436 75,422 4 – 5 — — — 10 34,003 82,900 Thereafter 5 14,767 47,000 225 237,049 1,405,414 Total 6 $ 20,808 $ 57,000 254 $ 356,856 $ 1,639,236 (1) As of December 31, 2016 , the Company determined the fair value of 18 policies to be negative and, therefore, assigned a fair value of zero to those policies. For contracts where the Company determined the fair value to be negative and therefore assigned a fair value of zero, the following table details the amount of premiums paid and the death benefits received for the year ended December 31, 2016. The Company had no such contracts as of December 31, 2017. Year Ended December 31, 2016 Number of policies with a negative value from discounted cash flow model 18 Premiums paid for the year ended $ 2,640 Death benefit received $ — The following table details premiums to be paid by the LSC Entities for each of the five succeeding fiscal years to keep the life insurance policies in force as of December 31, 2017 and 2016 : Premiums Due on Life Settlement Contracts December 31, 2017 December 31, 2016 2017 $ — $ 61,518 2018 1,555 49,684 2019 1,620 50,396 2020 1,723 46,632 2021 2,288 43,223 2022 2,147 — Thereafter 9,385 503,817 Total premiums to be paid $ 18,718 $ 755,270 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The composition of intangible assets is summarized as follows: December 31, 2017 Gross Balance Accumulated Amortization Net Value Useful Life Renewal rights $ 92,392 $ 52,609 $ 39,783 4 to 17 years Distribution networks 249,397 75,893 173,504 5 to 20 years Software 6,057 4,929 1,128 3 to 20 years Customer relationships 253,795 97,394 156,401 7 to 18 years Trademarks 9,720 6,920 2,800 3 to 15 years Trademarks 15,326 — 15,326 Indefinite Life Licenses 12,608 12,275 333 5 to 50 years Licenses 47,244 — 47,244 Indefinite Life Use rights 82,159 — 82,159 Indefinite Life Other 89,687 55,683 34,004 1 to 10 years Less: Assets classified as held for sale (See Note 27) (273,873 ) (102,014 ) (171,859 ) N/A Total intangible assets $ 584,512 $ 203,689 $ 380,823 12 years average December 31, 2016 Gross Balance Accumulated Amortization Net Value Useful Life Renewal rights $ 86,525 $ 38,547 $ 47,978 4 to 17 years Distribution networks 194,651 58,294 136,357 5 to 20 years Software 14,649 4,424 10,225 3 to 20 years Customer relationships 251,656 72,633 179,023 7 to 18 years Trademarks 9,720 5,533 4,187 3 to 15 years Trademarks 14,756 — 14,756 Indefinite Life Licenses 12,608 11,047 1,561 5 to 50 years Licenses 46,923 — 46,923 Indefinite Life Use rights 79,681 — 79,681 Indefinite Life Other 67,482 31,613 35,869 1 to 10 years Total intangible assets $ 778,651 $ 222,091 $ 556,560 11 years average Finite lived intangible assets are generally amortized under the straight-line method, except for renewal rights, which the Company amortizes using a 125% accelerated method, and certain customer relationships, which are amortized based on cash flows associated with the respective customer relationships. Amortization expense for the years ended December 31, 2017 , 2016 and 2015 was $85,143 , $65,425 and $46,524 , respectively. The estimated aggregate amortization expense for each of the next five years is: 2018 $ 74,898 2019 66,277 2020 52,200 2021 44,402 2022 37,620 Thereafter 132,556 Less: Assets classified as held for sale (See Note 27) (164,759 ) Total amortization of intangible assets with finite lives $ 243,194 The Company identifies reporting units for goodwill impairment testing in accordance with ASC 350-20-35 Intangibles - Goodwill and Other . The Company generally combines reporting units, which are a component of an operating segment, when they have similar economic characteristics, nature of services, types of customer, distribution methods and regulatory environment. For the years ended December 31, 2017 and 2016 , the Company had six reporting units that it tested for goodwill impairment. Goodwill is typically tested for impairment annually as of October 1 st . However, due to the announcement of the entry into an agreement to sell a majority interest in its U.S.-based fee business in the fourth quarter, the Company concluded that a triggering event had occurred. Therefore, an additional goodwill impairment analysis was performed as of the date of the announcement on all reporting units. Based on the impairment tests performed as of November 6, 2017, October 1, 2017 and October 1, 2016, the fair values exceeded the carrying values of the respective reporting units. No goodwill impairment losses were recognized for the years ended December 31, 2017 and 2016, respectively, as a result of the impairment tests. In 2015, the Company had one reporting unit, Specialty Risk and Extended Warranty - Luxembourg reporting unit (“RU”), which was at risk of failing step 1 in the goodwill impairment test required under ASC 350 Intangibles - Goodwill and Other. This RU had $60,249 of goodwill as of the test date in 2015. For the RU, a step 1 analysis was performed to determine whether an impairment existed using an October 1 st measurement date. Since Luxembourg reinsurance companies are regularly bought and sold between third parties and the transaction data information is available, the Guideline Transactions Method of the Market Approach (Fair value hierarchy Level 3) was utilized to determine the fair value of the RU. The Guideline Transactions Method is based on valuation multiples derived from actual transactions for comparable companies and was used to develop an estimate of value for the subject company. In applying this method, valuation multiples are derived from historical data of selected transactions, then evaluated and adjusted, if necessary, based on the strengths and weaknesses of the subject company relative to the derived market data. In the case of the RU, the most appropriate multiple to utilize was determined to be a Price to Invested Assets (“P/IA”) multiple, since invested assets and the corresponding regulatory reserves are metrics utilized by market participants to negotiate the purchase price of the transaction. These P/IA multiples are then applied to the appropriate invested assets of the subject company to arrive at an indication of fair value. Step 1 of the impairment test indicated that the RU’s carrying value exceeded its fair value in 2015. Accordingly, the Company performed a Step 2 impairment test and recorded a non-cash goodwill impairment charge of $55,304 during the year ended December 31, 2015, which is included in Other expenses on the consolidated statements of operations. The changes in the carrying amount of goodwill by segment for the years ended December 31, 2017 and 2016 are as follows: Small Commercial Business Specialty Risk and Extended Warranty Specialty Program Total Goodwill as of January 1, 2016 $ 145,352 $ 244,894 $ 42,454 $ 432,700 Goodwill additions 73,551 175,165 9,811 258,527 Foreign currency translation and other — (4,662 ) — (4,662 ) Goodwill as of December 31, 2016 $ 218,903 $ 415,397 $ 52,265 $ 686,565 Goodwill additions 16,229 53,918 — 70,147 Foreign currency translation and other (1) 14,813 (20,507 ) (9,811 ) (15,505 ) Less: Assets classified as held for sale (See Note 27) (11,653 ) (141,145 ) (35,517 ) (188,315 ) Goodwill as of December 31, 2017 $ 238,292 $ 307,663 $ 6,937 $ 552,892 (1) - Includes a reclassification of goodwill to intangible assets and adjustments to realign goodwill by segment. Goodwill added during 2017 resulted primarily from the acquisitions of AHC in the Small Commercial Business segment and the acquisitions of PDP and certain other companies in the Specialty Risk and Extended Warranty segment as well as prior year purchase adjustments. Goodwill added during 2016 resulted primarily from the acquisitions of Republic and Total Program Management in the Small Commercial Business segment and the acquisitions of Nationale Borg, ANV and First Nationwide in the Specialty Risk and Extended Warranty segment. A roll forward of the changes in cumulative goodwill impairment losses, which are all included in the Specialty Risk and Extended Warranty segment, is below: Goodwill $ 614,922 Accumulated impairment losses (182,222 ) Balance as of December 31, 2015 432,700 Goodwill acquired 258,527 Foreign currency translation and other (4,662 ) Goodwill 868,787 Accumulated impairment losses (182,222 ) Balance as of December 31, 2016 686,565 Goodwill acquired 70,147 Foreign currency translation and other (15,505 ) Goodwill 923,429 Accumulated impairment losses (182,222 ) Less: Assets classified as held for sale (See Note 27) (188,315 ) Balance as of December 31, 2017 $ 552,892 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Included within other assets are the following: December 31, 2017 2016 Other receivables (related party $12,280; $35,547) $ 654,873 $ 580,718 Life settlement contracts 20,808 356,856 Other assets (related party $2,334; $1,298) 463,615 347,230 Funds held with reinsurance companies 66,169 169,217 Loan receivable (related party $256,787; $125,000) 266,176 131,797 Deferred tax asset 116,844 16,032 Less: Assets classified as held for sale (see Note 27) (165,435 ) — Total other assets $ 1,423,050 $ 1,601,850 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property, Equipment and Software, net Property, equipment and software consist of the following: December 31, 2017 2016 Land $ 28,414 $ 20,678 Building 313,576 137,096 Software 202,568 192,846 Computer equipment 73,795 57,870 Other equipment 66,002 57,773 Leasehold improvements 13,180 29,221 Property, equipment and software, gross 697,535 495,484 Less: Accumulated depreciation (239,970 ) (181,152 ) Assets classified as held for sale (see Note 27) (4,187 ) — Property, equipment and software, net $ 453,378 $ 314,332 Depreciation expense was $73,261 , $52,677 and $37,905 for the years ended December 31, 2017, 2016 and 2015 . Accumulated depreciation was reduced by disposals and other activities of $14,443 during the year ended December 31, 2017. |
Loss and Loss Adjustment Expens
Loss and Loss Adjustment Expense Reserves | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Loss and Loss Adjustment Expense Reserves | Loss and Loss Adjustment Expense Reserves The following table provides a reconciliation of the beginning and ending balances for loss and loss adjustment expense reserves ("Loss and LAE"), reported in the accompanying consolidated balance sheets as of December 31, 2017, 2016 and 2015 : December 31, 2017 2016 2015 Loss and LAE, at beginning of year $ 10,140,716 $ 7,208,367 $ 5,664,205 Less: reinsurance recoverables at beginning of year 3,873,786 2,665,187 2,149,444 Net loss and LAE, at beginning of year 6,266,930 4,543,180 3,514,761 Incurred related to: Current year 3,665,506 2,884,392 2,654,187 Prior year 418,972 257,887 33,931 Total incurred during the year 4,084,478 3,142,279 2,688,118 Paid related to: Current year (1,259,315 ) (1,060,771 ) (847,357 ) Prior year (1,962,218 ) (1,484,638 ) (1,018,931 ) Total paid during the year (3,221,533 ) (2,545,409 ) (1,866,288 ) Commuted loss reserves — — 129,377 Retroactive reinsurance recoverable (1,018,716 ) — — Loss portfolio transfers — 312,049 Acquired outstanding loss and loss adjustment reserves 213,686 783,066 116,044 Allowance for reinsurance recoverable (34,328 ) — — Effect of foreign exchange rates 178,602 31,765 (38,832 ) Net loss and LAE, at end of year 6,469,119 6,266,930 4,543,180 Plus: reinsurance recoverables at end of year 5,669,649 3,873,786 2,665,187 Loss and LAE, at end of year $ 12,138,768 $ 10,140,716 $ 7,208,367 In 2017 , 2016 and 2015 , the Company’s liabilities for unpaid losses and LAE attributable to prior years increased by $418,972 , $257,887 and $33,931 , respectively. Consistent with prior years, the actuarial process was driven by updated and new incurred and paid loss data, continued review of actuarial diagnostics, which led to additional in-depth claims reviews or further development being recognized, and update of frequency and severity trends, which have continued to develop adversely. The adverse reserve development in 2017 was primarily driven by unfavorable development related to emerging loss experience beyond the prior indications based on new and updated data, especially within the Company's Small Commercial workers' compensation business in accident years of 2012 through 2016, deterioration of claim severities within auto liability that continues to exceed previously revised expectations, and unfavorable development on Italian hospital liability business related to lower than expected benefits on claims savings strategies in the oldest years. Additionally, Specialty Program segment adverse development was driven by development from long-tailed terminated programs, particularly general liability programs. The adverse development in 2016 and 2015 was primarily driven by unfavorable loss development due to higher actuarial estimates based on actual losses in the Company's Small Commercial Business and Specialty Program segments. In the Company's Small Commercial Business segment, this adverse prior period development was driven primarily by commercial auto and general liability businesses, as well as increases to the Company's non-California related workers' compensation prior selected ultimate losses, which were offset by prior selected ultimate losses for our California workers' compensation business. In the Company's Specialty Program segment, the adverse prior period development was driven primarily by commercial auto and general liability programs (including public entity, habitational and non-admitted programs). The percentage of the Company's unpaid losses and LAE related to IBNR was 52.8% , 52.5% and 53.3% as of December 31, 2017, 2016 and 2015 , respectively. In setting its reserves, the Company utilizes a combination of Company loss development factors and industry-wide loss development factors. In the event that the Company’s losses develop more favorably (adversely) than the industry, as a whole, the Company’s liabilities for unpaid losses and LAE may decrease (increase). The Company's management believes that its use of both its historical experience and industry-wide loss development factors provide a reasonable basis for estimating future losses. In either case, future events beyond the control of management, such as changes in law, judicial interpretations of law, and inflation may favorably or unfavorably impact the ultimate settlement of the Company’s Loss and LAE reserves. The anticipated effect of inflation is implicitly considered when estimating liabilities for losses and LAE. While the Company considers anticipated changes in claim costs due to inflation in estimating the ultimate claim costs, the increase in average severity of claims is caused by a number of factors that vary with the individual type of policy written. The Company projects future average severities based on historical trends adjusted for implemented changes in underwriting standards, policy provisions, and general economic trends. The Company monitors those anticipated trends based on actual development and makes modifications, if necessary. |
Short Duration Contracts
Short Duration Contracts | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Short Duration Contracts | Short Duration Contracts The following is information about the incurred and paid claims for the year ended December 31, 2017 , net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claim amounts. Additionally, incurred and paid claims information is presented for the years ended December 31, 2008 through December 31, 2016 as supplementary information. The Company’s reserves relate to short-duration contracts ("SDC") with characteristics including type of coverage, geography, and claim development. The Company considered these characteristics in determining an appropriate level of disaggregation related to its short duration contracts. The following table indicates the level of disaggregation included herein: Reportable Segment Lines of Business Small Commercial Workers' Compensation Commercial Auto General Liability Tower Cut-Through Specialty Program Commercial Auto Workers' Compensation General Liability Specialty Risk and Extended Warranty Medical Malpractice Property Professional Indemnity and Other Liability Other International and Warranty The Company determined that certain exposures are either insignificant or have development characteristics associated with the exposures that are not representative of the Company’s case reserve and claim settlement philosophies. The excluded exposures generally include loss portfolio transfers of liabilities that have development characteristics unlike our ongoing business (e.g., a loss portfolio transfer from Majestic of workers’ compensation exposures that do not represent our current hazard mix or class severities). The table below shows initial reserves, reserves as of December 31, 2017 , payments since the Company's assumption of the loss portfolio transfers (the “LPTs”), and subsequent development associated for each LPT transaction. All claims transferred with these transactions are associated with accident periods prior to the date of the LPT. The Company recorded all losses to the accident year in which the transaction occurred, even though the accident dates of the claims covered may be in prior accident years. Specifically, all claims related to the LPT from the Health Insurance Trust of New York (“HITNY”), which the Company entered into in 2013, arose prior to accident year 2008 and virtually all claims related to the LPT from Elite Contractor’s Trust of New York (“ECTNY”), which the Company entered into in 2014, arose prior to accident year 2008. Furthermore, a significant percentage of the claims related to the Majestic Insurance Company LPT, which the Company entered into in mid - 2011, also arose prior to accident year 2008. Loss Portfolio Year of Transfer Initial Reserves (includes ULAE) (Unaudited) Reserves as of December 31, 2017 (includes ULAE) Payments since Transfer (Unaudited) Subsequent Adverse (Favorable) Development (Unaudited) Majestic Insurance Company 2011 $ 209,670 $ 110,412 $ 140,732 $ 41,474 HITNY 2013 $ 83,188 $ 18,356 $ 35,351 $ (29,481 ) ECTNY 2014 $ 21,988 $ 4,378 $ 9,415 $ (8,195 ) Magna Carta 2016 $ 162,979 $ 79,042 $ 64,151 $ (19,786 ) The Company records reserves for estimated losses under insurance policies that it writes and for loss adjustment expenses related to the investigation and settlement of policy claims. The Company's reserves for loss and loss adjustment expenses represent the estimated cost of all reported and unreported loss and loss adjustment expenses incurred and unpaid at any given point in time based on known facts and circumstances. In establishing its reserves, the Company does not use loss discounting, which would involve recognizing the time value of money and offsetting estimates of future payments by future expected investment income. The Company estimates its reserves for loss and loss adjustment expenses using case-by-case valuations and actuarial analysis. The allocated loss adjustment expenses included in this disclosure are also referred to as defense and cost containment ("DCC") expenses. The Company utilizes various generally accepted actuarial methods including paid and incurred loss development factor approaches, expected loss ratio methods and paid and incurred Bornhuetter-Ferguson approaches to estimate its reserves for loss and loss adjustment expenses. Embedded within these actuarial methods are loss development assumptions selected by either a review of the Company's specific loss development history, industry loss development characteristics, or a combination of both depending on the line of business and the maturity of the loss experience to date. Loss development factors are a key assumption underlying many of the actuarial methods utilized. Loss development factors are the ratio of losses at successive evaluations for a defined group of claims (e.g., accident year, accident quarter, etc.). Loss development factors may be dependent on a number of elements, including frequency and severity of claims, length of time to achieve ultimate settlement of claims, case reserving practices, projected inflation of medical costs and wages (for workers’ compensation), insurance policy coverage interpretations, judicial determinations and existing laws and regulations. The predictive ability of loss development factors is dependent on consistent underwriting, claims handling, and inflation, among other factors, and predictable legislatively and judicially imposed legal requirements. The expected loss ratio (ELR) approach is generally relied upon for only the most recent accident periods for which claim experience may be too immature or volatile to rely upon for a projection of ultimate loss and loss adjustment expenses. The ELR is generally based on the business plan, trended historical results, or recent industry trends, all supplemented by discussions with various stakeholders including underwriting and claims. The ELR, when applied to earned premiums for an accident period, will provide an indication for estimated incurred claims and allocated claim adjustment expenses for the period. The Bornhuetter-Ferguson method (BFM) is a weighted blend of the loss development factor method and the ELR method. The BFM splits the ultimate claims into two components: actual reported (or paid) claims to date and expected unreported (or unpaid) claims. As experience matures, more weight is given to actual claims experience while the expected claims component becomes gradually less important. The Company's actuarial department estimates ultimate loss estimates and resulting unpaid claim and allocated claim adjustment expense reserve levels using the methodologies outlined above. The Company has increased its internal actuarial resources over time, and the assumptions employed in these methodologies are subject to regular review and update as experience matures. Management establishes the Company's loss and DCC reserves by assessing the results of the aforementioned actuarial techniques as prepared by both the internal and external actuarial resources, followed by a review of specific underwriting, claims handling and other operational considerations. In utilizing its judgment, management makes certain assumptions regarding the Company's business, including, among other things, frequency of claims, severity of claims and claim closure rates. Management’s estimation process has been generally consistent over time. In order to establish the adjusting and other ("AO") reserves, the Company reviews its past adjustment expenses in relation to past claims and estimates its future costs based on expected claims activity and duration. Because the Company determines its reserves based on assumptions that may give significant weight to industry incurred development patterns, the Company's ultimate losses may differ substantially from estimates produced by the above methods. The Company does not have any material changes to the actuarial methodologies utilized since year-end 2015. However, the Company does note that it increased its internal actuarial staff in 2015, which enabled us to engage in more in-depth and frequent actuarial analyses, drawing attention to the areas of business and/or accident years that were less profitable than originally anticipated. The information presented below reflects acquired business on a retrospective basis, that is, the historical development tables have been presented including historical development from acquired businesses in the tables both before and after the acquisition date. The loss development for international operations is presented for all accident years using the current exchange rate as of December 31, 2017 . Although this approach requires restating all prior accident year information, the changes in exchange rates do not impact incurred and paid loss development trends. Where practicable, the Company has included claim count information as a measure of claim frequency. For Specialty Risk and Extended Warranty, it is not practicable to provide claim count data due to limited and inconsistent availability of underlying claim reporting from our international business (e.g., use of bordereaux reporting without claim count detail). Where practicable, the Company has included claim counts by counting the number of occurrences. The Company has calculated the average annual percentage payout based on the historical information contained within each claims development table. First, the Company converts the Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance into incremental payment amounts (e.g., 0-12 months, 12-24 months, etc.) for each accident year and then divides each incremental payment amount by the current evaluation of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance in order to determine the historical annual percentage payout for each incremental period for each accident year. The Company averages available observations of annual percentage payout for each incremental period across accident years to determine the historical average annual percentage. Note that the historical average annual percentage payout may sum to an amount different than 100%. This may be due to the length of the development pattern; for example, very long tailed lines of business may have payout periods that are in excess of the number of years included in the tables below. Furthermore, fluctuation in the annual percentage payout for individual incremental periods due to the uncertainty inherent in the loss settlement process may even cause the sum of the average annual payout percentage to exceed 100%. Small Commercial Business Overview The Company’s Small Commercial Business segment consists of core business written and grown organically since 1998, as well as large acquired portfolios (both renewal rights and existing liabilities from periods pre-acquisition). This segment focuses on writing smaller, niche business typically underserved by the broader insurance market. The Company typically writes policies for auto liability and general liability, which have limits of $1,000 , limiting the severity impact of any particular claim to our overall portfolio. Small Commercial Business - Workers' Compensation The Company targets writing small, niche workers’ compensation exposures in generally low-hazard occupations. This has been the core strategy for the Company's organic business and re-underwriting goals for acquired businesses. The core workers' compensation portfolio has experienced adverse development, particularly accident years 2013 and subsequent. This is largely driven by higher severity of claims in New York and softening market conditions in California. Development in accident years prior to 2013 are influenced by legacy claims portfolios acquired by the Company. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 180,508 $ 174,424 $ 173,915 $ 174,708 $ 176,546 $ 179,476 $ 180,769 $ 181,359 $ 185,250 $ 190,615 12,337 12,142 2009 — 216,044 221,418 234,453 234,596 237,660 239,939 244,138 244,116 247,725 14,221 19,446 2010 — — 236,893 256,624 262,549 269,261 270,508 278,802 270,822 277,751 17,516 23,294 2011 — — — 278,983 317,893 331,905 331,311 335,628 329,761 335,859 21,550 27,648 2012 — — — — 350,207 385,919 375,645 363,670 378,822 388,257 39,313 39,953 2013 — — — — — 483,520 459,099 441,243 464,432 483,131 46,740 56,832 2014 — — — — — — 723,070 640,801 635,987 660,039 72,539 80,636 2015 — — — — — — — 851,277 747,321 786,080 127,087 94,594 2016 — — — — — — — — 807,942 859,920 255,608 96,458 2017 — — — — — — — — — 897,427 468,122 82,192 Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 5,126,804 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 41,555 $ 93,666 $ 124,777 $ 141,680 $ 152,500 $ 161,544 $ 165,605 $ 168,692 $ 171,392 $ 174,576 2009 — 50,293 116,098 155,654 180,073 196,803 205,968 212,257 216,853 220,740 2010 — — 59,964 133,755 178,415 205,524 222,458 234,404 243,130 249,444 2011 — — — 66,396 160,635 216,215 248,604 269,749 282,573 294,284 2012 — — — — 80,159 181,158 243,713 281,544 305,726 323,641 2013 — — — — — 83,926 211,079 290,037 347,105 384,068 2014 — — — — — — 107,040 296,280 410,629 490,835 2015 — — — — — — — 131,873 356,983 490,561 2016 — — — — — — — — 152,262 374,563 2017 — — — — — — — — — 152,784 Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 3,155,496 All outstanding liabilities before 2008, net of reinsurance 107,953 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 2,079,261 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Small Commercial Business - Workers Compensation Insurance 18.9% 27.1% 16.5% 10.3% 6.5% 4.2% 2.8% 1.9% 1.5% 1.7% Small Commercial Business - Commercial Auto As part of the renewal rights acquisition of the Tower Group International, Ltd.'s commercial lines business in connection with Tower's merger with ACP Re, Ltd. in 2014, there has been substantial business growth in the commercial auto line of business year over year beginning with 2014. The Company experienced adverse development in recent accident years and development periods, particularly accident years 2013 and 2014 when the Company began to write a significantly higher amount of Commercial Auto business. The Company's results have been impacted by adverse trends impacting the broader commercial auto industry, including increasing frequency and severity of claims above expectation. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 34,547 $ 35,622 $ 37,092 $ 39,816 $ 39,212 $ 39,014 $ 38,700 $ 38,531 $ 38,561 $ 38,555 (195 ) 871 2009 — 38,059 37,728 42,784 41,947 41,744 40,826 40,649 40,672 40,578 (214 ) 953 2010 — — 30,600 34,851 35,850 37,865 38,748 38,740 38,496 39,554 791 571 2011 — — — 34,434 37,687 39,268 40,618 41,474 41,762 41,570 (188 ) 932 2012 — — — — 40,980 47,494 51,645 56,281 58,170 58,329 2,434 1,226 2013 — — — — — 54,037 60,542 65,557 75,950 79,406 2,937 2,204 2014 — — — — — — 84,175 88,527 100,299 118,184 9,506 3,910 2015 — — — — — — — 122,312 135,230 135,972 23,696 7,318 2016 — — — — — — — — 202,639 202,023 66,490 11,388 2017 — — — — — — — — — 202,304 113,101 11,353 Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 956,475 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 8,949 $ 16,479 $ 25,175 $ 31,934 $ 36,494 $ 37,516 $ 37,999 $ 38,326 $ 38,456 $ 38,770 2009 — 8,470 20,011 28,399 35,029 38,402 40,049 40,181 40,278 41,198 2010 — — 8,174 14,745 22,647 29,644 34,736 36,992 37,651 39,276 2011 — — — 8,052 18,281 26,278 32,908 37,652 41,028 41,476 2012 — — — — 9,622 22,204 35,148 45,245 52,312 55,750 2013 — — — — — 12,572 25,186 38,901 57,490 71,587 2014 — — — — — — 14,898 35,244 59,967 89,150 2015 — — — — — — — 19,613 42,770 73,929 2016 — — — — — — — — 30,944 74,580 2017 — — — — — — — — — 36,176 Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 561,892 All outstanding liabilities before 2008, net of reinsurance 69 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 394,652 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Small Commercial Business - Commercial Auto 17.7 % 20.3 % 20.7 % 19.0 % 12.4 % 5.3 % 1.1 % 1.7 % 1.3 % 0.8 % Small Commercial Business - General Liability Similar to the Company's commercial auto business, there has been substantial growth in the general liability line subsequent to the renewal rights acquisition of Tower's commercial lines business. The portfolio has been subject to careful risk selection and focus on more profitable risks. The Company experienced adverse development in recent accident years, some of which was related to development within the Company’s excess and surplus and umbrella lines of business. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 4,764 $ 4,557 $ 3,518 $ 2,077 $ 5,024 $ 7,616 $ 7,061 $ 6,443 $ 5,164 $ 5,255 188 1,071 2009 — 13,325 12,232 11,811 12,414 15,347 16,405 16,346 14,701 14,427 (249 ) 984 2010 — — 9,714 10,182 9,912 15,206 15,982 18,221 18,182 17,847 106 676 2011 — — — 9,593 11,124 18,348 20,446 20,335 20,161 21,166 431 1,158 2012 — — — — 20,018 32,126 34,694 35,212 37,102 40,358 2,591 2,529 2013 — — — — — 55,729 56,051 57,690 62,219 68,685 4,990 3,324 2014 — — — — — — 83,583 80,041 79,789 89,948 10,300 4,575 2015 — — — — — — — 119,668 120,504 129,764 22,220 7,041 2016 — — — — — — — — 138,204 138,125 58,801 7,637 2017 — — — — — — — — — 173,340 123,070 6,503 Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 698,915 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 256 $ 685 $ 1,288 $ 2,456 $ 3,100 $ 4,331 $ 4,695 $ 4,971 $ 4,898 $ 4,956 2009 — 1,457 4,327 6,686 8,670 9,636 10,351 11,243 13,111 13,788 2010 — — 756 2,679 4,961 7,763 10,730 14,022 16,300 17,353 2011 — — — 739 2,959 6,869 11,075 14,086 16,867 19,087 2012 — — — — 1,423 9,113 17,091 23,605 29,475 33,885 2013 — — — — — 5,226 15,841 28,775 41,296 57,466 2014 — — — — — — 6,981 21,877 39,609 64,298 2015 — — — — — — — 9,076 30,197 64,887 2016 — — — — — — — — 10,287 35,980 2017 — — — — — — — — — 14,922 Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 326,622 All outstanding liabilities before 2008, net of reinsurance 2,212 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 374,505 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Small Commercial Business - General Liability 6.5 % 15.0 % 18.0 % 19.1 % 14.6 % 14.2 % 9.1 % 8.0 % 1.7 % 1.1 % Small Commercial Business - Tower Cut-Through In January 2014, the Company entered into a cut through quota share reinsurance agreement (the "Cut Through Reinsurance Agreement") with Tower Group International, Ltd. ("Tower") to provide a 100% quota share for a majority of Tower's in force commercial lines policies and most new and renewal commercial lines business. At the inception of the Cut Through Reinsurance Agreement, the Company initially assumed $173,460 of unearned premium. During 2014, the Company assumed approximately $475,038 of premium through the Cut Through Reinsurance Agreement. In conjunction with ACP Re, Ltd.'s (“ACP Re”) merger with Tower, on September 15, 2014, the Company entered into various agreements with Tower including, primarily, a renewal rights agreement and a quota share reinsurance agreement. The quota share reinsurance agreement allowed the Company to reinsure 100% of all losses for Tower’s new and renewal commercial lines business written after September 15, 2015. The quota share agreement replaced the Cut Through Reinsurance Agreement. As a result of the renewal rights transaction, the Company wrote approximately $133,424 of gross written premium for the year ended December 31, 2014. The Company has experienced favorable run-off in the past year for this portfolio, primarily from the property/short-tail lines exposures written offset by adverse development on workers’ compensation, auto liability, and general liability. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — — — 2009 — — — — — — — — — — — — 2010 — — — — — — — — — — — — 2011 — — — — — — — — — — — — 2012 — — — — — — — — — — — — 2013 — — — — — — — — — — — — 2014 — — — — — — 197,476 234,294 242,134 248,968 11,712 13,949 2015 — — — — — — — 84,625 109,278 107,395 9,242 5,221 2016 — — — — — — — — 13,487 7,629 2,594 526 2017 — — — — — — — — — — — — Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 363,992 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ — $ — $ — $ — — — $ — $ — $ — $ — 2009 — — — — — — — — — — 2010 — — — — — — — — — — 2011 — — — — — — — — — — 2012 — — — — — — — — — — 2013 — — — — — — — — — — 2014 — — — — — — 44,067 112,927 148,228 183,380 2015 — — — — — — — 28,835 61,056 76,708 2016 — — — — — — — — 3,200 4,136 2017 — — — — — — — — — — Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 264,224 All outstanding liabilities before 2008, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 99,768 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Small Commercial Business - Tower Cut-Through 28.8 % 23.3 % 14.4 % 14.1 % — % — % — % — % — % — % Specialty Program Overview The Company entered the Specialty Program business in 2006. The Company's experience in this business has tended to develop adversely relative to the Company's initial expectations, as highlighted below. However, as the Company has grown in this business, it has been increasingly able to leverage its industry experience and scale. The Company has improved its internal capabilities by creating a dedicated programs management team, increasing the strength of internal actuarial resources, investing in the internal claims function and migrating a number of programs from external to internal claims handling. Furthermore, the Company has strengthened underwriting and actuarial review procedures, targeting unprofitable programs for corrective action or termination. Many of the programs are new exposures underwritten without the benefit of much historical data. As such, there is a larger degree of pricing uncertainty in the underlying exposure mix as produced by the managing general agent in a programs portfolio versus the level of homogenous exposures in the Company's retail book produced by our internal underwriters. There is a time lag necessary to assess the true profitability of the program in relation to the initial rates charged. As this information becomes known, the Company either terminates or renegotiates unprofitable programs, contributing to a go-forward portfolio of programs for which the Company can project general experience with a higher degree of confidence. Specialty Program - Commercial Auto The Company typically writes programs in coverage packages. For example, the Company may write commercial auto with workers’ compensation or property coverage. When pricing a particular risk, the Company focuses on overall profitability and may be willing to accept more (or less) pricing adequacy in a certain coverage and less (or more) pricing adequacy on another line. However, the Company's initial estimates of loss for commercial auto have tended to prove too low; the resulting adverse development has been exacerbated by worsening industry trends for frequency and severity. The Company typically writes policies that have limits of $1,000 , limiting the severity impact of any particular claim to our overall portfolio. However, as the Company grew its Specialty Program - Commercial Auto business, the Company underwrote a small number of large, mono-line auto programs at limits higher than its traditional $1,000 cap. These policies had a disproportionate impact on the adverse loss experience embedded in the triangle. The development during the year was slightly favorable, as the Company has now terminated or non-renewed these mono-line auto programs and focused on achieving rate increases on renewed programs. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 34,038 $ 40,409 $ 41,604 $ 44,012 $ 47,660 $ 48,038 $ 49,025 $ 49,330 $ 50,811 $ 50,984 45 3,513 2009 — 27,887 24,087 27,189 32,811 36,942 37,665 38,389 37,634 37,597 334 3,591 2010 — — 9,727 10,982 17,439 21,270 24,571 26,891 29,031 28,662 234 2,253 2011 — — — 3,801 11,002 16,152 17,903 20,402 20,576 19,905 90 2,570 2012 — — — — 13,797 38,487 47,663 56,108 58,374 56,934 275 6,230 2013 — — — — — 35,938 45,138 58,205 64,970 67,349 1,121 7,292 2014 — — — — — — 32,623 47,314 58,751 59,401 3,852 7,452 2015 — — — — — — — 43,810 69,980 70,108 9,357 5,955 2016 — — — — — — — — 54,720 52,139 12,899 3,121 2017 — — — — — — — — — 47,967 32,646 1,703 Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 491,046 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 5,868 $ 16,398 $ 24,624 $ 35,634 $ 39,893 $ 43,173 $ 45,838 $ 48,128 $ 49,039 $ 50,176 2009 — 4,338 11,485 18,234 24,561 29,964 33,807 36,260 36,812 36,883 2010 — — 2,375 5,818 9,960 15,499 22,049 24,848 27,836 28,133 2011 — — — 2,143 6,384 9,602 13,792 16,383 18,507 19,581 2012 — — — — 5,407 17,167 32,697 43,498 53,138 54,025 2013 — — — — — 8,054 22,299 38,942 53,562 62,264 2014 — — — — — — 7,525 21,359 33,651 47,375 2015 — — — — — — — 10,071 29,612 46,424 2016 — — — — — — — — 11,037 22,871 2017 — — — — — — — — — 7,369 Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 375,101 All outstanding liabilities before 2008, net of reinsurance 932 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 116,877 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Specialty Program - Commercial Auto 12.7 % 21.0 % 20.2 % 20.4 % 14.7 % 7.7 % 6.9 % 2.3 % 1.0 % 2.2 % Specialty Program - Workers' Compensation The Company typically writes programs in coverage packages. For example, the Company may write commercial auto with workers’ compensation or property coverage. When pricing a particular risk, the Company focuses on overall profitability and may be willing to accept more (or less) pricing adequacy in a certain coverage and less (or more) pricing adequacy on another line. The underwriting of workers' compensation attempts to calibrate risk and price against the Company's retail book. The development during the year was adverse, namely on accident year 2016, similar to the Small Commercial portfolio, as trends have continued to worsen and pricing pressure, particularly in California, increased. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 50,035 $ 55,067 $ 55,860 $ 56,968 $ 55,598 $ 55,887 $ 55,836 $ 58,104 $ 60,710 $ 60,644 4,164 6,272 2009 — 66,198 71,586 73,952 72,180 74,553 73,987 75,470 79,599 79,658 9,624 6,208 2010 — — 70,648 80,766 81,521 85,397 84,354 86,469 91,565 91,569 12,297 6,239 2011 — — — 61,234 69,332 73,182 70,411 71,531 76,234 76,276 11,887 5,717 2012 — — — — 47,744 65,955 69,358 72,150 75,605 75,507 8,305 7,009 2013 — — — — — 86,150 100,078 104,142 109,268 111,228 14,251 11,341 2014 — — — — — — 128,948 130,413 142,808 145,179 23,514 13,176 2015 — — — — — — — 155,115 176,766 177,652 44,894 17,483 2016 — — — — — — — — 178,360 192,292 67,785 16,901 2017 — — — — — — — — — 151,096 85,887 9,777 Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 1,161,101 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 10,129 $ 29,704 $ 39,913 $ 45,740 $ 49,307 $ 50,760 $ 51,963 $ 52,935 $ 54,361 $ 55,018 2009 — 11,860 35,103 48,287 57,218 62,188 64,958 67,001 68,782 69,580 2010 — — 14,204 38,439 54,083 63,273 68,712 72,174 75,625 76,821 2011 — — — 12,633 34,134 47,454 53,983 58,482 61,206 63,687 2012 — — — — 11,436 30,557 43,481 52,881 57,718 61,206 2013 — — — — — 13,546 41,460 63,540 75,753 83,289 2014 — — — — — — 20,359 58,335 82,962 99,752 2015 — — — — — — — 24,152 68,194 98,630 2016 — — — — — — — — 26,731 72,533 2017 — — — — — — — — — 22,607 Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 703,123 All outstanding liabilities before 2008, net of reinsurance 5,984 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 463,962 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Specialty Program - Workers' Compensation 14.7 % 26.8 % 17.4 % 10.6 % 6.2 % 3.6 % 2.9 % 1.7 % 1.7 % 1.1 % Specialty Program - General Liability The Specialty Program - general liability line of business may contain a mix of exposures from retail operations, contractors, manufacturers, and other premises. The propensity for loss from these exposures is driven by judicial and economic developments that are difficult to forecast. Additionally, claims may be reported as many as three years or more after an occurrence and the Company may not receive the informat |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Included within accrued expenses and other liabilities are the following: December 31, 2017 2016 Deferred revenue $ 636,170 $ 609,722 Commission payable 431,589 410,493 Accounts payable and other 311,050 337,057 Premium taxes, assessments and surcharges payable 186,241 165,289 Contingent consideration 75,367 71,657 Dividend payable 33,442 41,448 Less: Amounts classified as held for sale (See Note 27) (760,385 ) $ — Total accrued expenses and other liabilities $ 913,474 $ 1,635,666 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s outstanding debt consisted of the following as of December 31, 2017 and 2016 : December 31, 2017 2016 Revolving credit facility $ 130,000 $ 130,000 5.5% Convertible senior notes due 2021 (the "2021 Notes") 5,363 5,223 2.75% Convertible senior notes due 2044 (the "2044 Notes") 172,958 166,387 6.125% Notes due 2023 (the "2023 Notes") 248,458 248,185 Junior subordinated debentures (the "2035-2037 Notes") 122,116 122,028 Trust preferred securities (the "2033-2037 TPS Notes") 92,786 92,786 7.25% Subordinated notes due 2055 (the "7.25% 2055 Notes") 145,327 145,202 7.50% Subordinated notes due 2055 (the "7.50% 2055 Notes") 130,795 130,684 Secured loan agreements 174,414 75,762 Promissory notes 66,504 118,643 Total debt $ 1,288,721 $ 1,234,900 Aggregate scheduled maturities of the Company’s outstanding debt as of December 31, 2017 are: 2018 $ 7,220 2019 161,595 (1) 2020 27,436 2021 16,507 (2) 2022 10,401 Thereafter 1,080,589 (2) Total scheduled payments 1,303,748 Unamortized deferred origination costs (15,027 ) Total debt $ 1,288,721 (1) Amount does not include scheduled maturities of notes payable on the collateral loan to Maiden of $167,975 in June 2019. See Note 15. "Related Party Transactions" for additional information. (2) Amount includes debt outstanding under the 2021 Notes and the 2044 Notes, which is net of unamortized original issue discount of $611 and $42,546 , respectively. Additionally, the Company utilizes various letters of credit in its operations. The following is a summary of the Company's letters of credit as of December 31, 2017 : Letters of Credit Limit Letters of Credit Outstanding Letters of Credit Available Revolving credit facility $ 175,000 $ 173,072 $ 1,928 Funds at Lloyd's facility 614,842 573,554 41,288 ING Bank N.V., BHF Bank Aktiengesellschaft, and Deutsche Bank AG facilities 104,084 72,228 31,856 Comerica Bank facility 75,000 42,900 32,100 Other letters of credit, in aggregate 139,060 139,060 — Interest expense, including amortization of original issue discount and deferred origination costs, as well as applicable bank fees, related to the Company's outstanding debt and letters of credit for the years ended December 31, 2017 , 2016 , and 2015 was: Year Ended December 31, 2017 2016 2015 Revolving credit facility $ 6,172 $ 4,617 $ 3,726 2021 Notes 471 461 825 2044 Notes 13,013 12,571 12,160 2023 Notes 15,587 15,587 15,587 2035-2037 Notes 5,785 6,077 6,641 2033-2037 TPS Notes 4,368 2,772 — 7.25% 2055 Notes 11,000 11,000 5,868 7.50% 2055 Notes 10,237 10,237 2,939 Secured loan agreements 6,361 2,536 872 Promissory notes 4,585 4,954 623 Funds at Lloyd's facility 5,231 4,484 3,350 Other, including interest income 15,455 4,230 2,764 Total interest expense $ 98,265 $ 79,526 $ 55,355 Revolving Credit Agreement On September 12, 2014 , the Company entered into a five -year, $350,000 credit agreement (the “Credit Agreement”), among JPMorgan Chase Bank, N.A., as Administrative Agent, KeyBank National Association and SunTrust Bank, as Co-Syndication Agents, Lloyd's Bank PLC and Associated Bank, as Co-Documentation Agents and the various lending institutions party thereto. The credit facility is a committed, revolving syndicated credit facility with a letter of credit sublimit of $175,000 and an expansion feature of not more than an additional $150,000 . The Credit Agreement has a maturity date of September 12, 2019 . The Credit Agreement contains certain restrictive covenants customary for facilities of this type (subject to negotiated exceptions and baskets), including restrictions on indebtedness, liens, acquisitions and investments, restricted payments and dispositions. There are also financial covenants that require the Company to maintain a minimum consolidated net worth, a maximum consolidated leverage ratio, a minimum consolidated fixed charge coverage ratio and a minimum consolidated risk-based capital. The Company was in compliance with all of its covenants as of December 31, 2017 . As of December 31, 2017 , the Company had $130,000 of borrowings and $173,072 letters of credit outstanding under this Credit Agreement, which reduced the availability for letters of credit to $1,928 , and the total aggregate availability under the facility to $46,928 . Borrowings under the Credit Agreement bear interest at either the Alternate Base Rate or the LIBO rate. Borrowings bearing interest at a rate determined by reference to the Alternate Base Rate will bear interest at (x) the greatest of (a) the administrative agent’s prime rate, (b) the federal funds effective rate plus 0.5% , or (c) the adjusted LIBO rate for a one-month interest period on such day plus 1.0% , plus (y) a margin ranging from 0.125% to 0.625% , adjusted on the basis of the Company’s consolidated leverage ratio. Eurodollar borrowings will bear interest at the adjusted LIBO rate for the interest period in effect plus a margin ranging from 1.125% to 1.625% , adjusted on the basis of the Company’s consolidated leverage ratio. Fees payable by the Company under the Credit Agreement include a letter of credit participation fee (equal to the margin applicable to Eurodollar borrowings), a letter of credit fronting fee with respect to each letter of credit ( 0.125% ) and a commitment fee on the available commitments of the lenders (a range of 0.15% to 0.25% based on the Company’s consolidated leverage ratio). Convertible Senior Notes 5.5% Convertible Senior Notes due 2021 In December 2011 and January 2012, the Company issued $200,000 in aggregate principal amount of its 2021 Notes. The 2021 Notes will mature on December 15, 2021 (the “Maturity Date”), unless repurchased earlier by the Company or converted into shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”). Prior to September 15, 2021 , the 2021 Notes will be convertible only in the following circumstances: (i) during any fiscal quarter, and only during any such fiscal quarter, if the last reported sale price of the Company’s Common Stock was greater than or equal to 130% of the applicable conversion price for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on the last trading day of the previous fiscal quarter (the “Sale Price Condition”); (ii) during the five consecutive business day period following any five consecutive trading day period in which, for each day of that period, the trading price for the 2021 Notes was less than 98% of the product of the last reported sale price of the Company’s Common Stock and the applicable conversion rate on such trading day; or (iii) upon the occurrence of specified corporate transactions. On or after September 15, 2021, the 2021 Notes will be convertible at any time prior to the close of business on the second scheduled trading day immediately preceding the Maturity Date. The conversion rate as of December 31, 2017 is equal to 83.3945 shares of Common Stock per $1,000 principal amount of 2021 Notes, which corresponds to a conversion price of approximately $11.99 per share of Common Stock. The conversion rate is subject to adjustment upon the occurrence of certain events as set forth in the indenture governing the 2021 Notes. Upon conversion of the 2021 Notes, the Company will, at its election, pay or deliver, as the case may be, cash, shares of Common Stock, or a combination of cash and shares of Common Stock. As of December 31, 2017 , the 2021 Notes were not convertible under the Sale Price Condition. Upon the occurrence of a fundamental change (as defined in the indenture governing the notes) involving the Company, holders of the 2021 Notes will have the right to require the Company to repurchase their 2021 Notes for cash, in whole or in part, at 100% of the principal amount of the 2021 Notes to be repurchased, plus any accrued and unpaid interest, if any, to, but excluding, the fundamental change purchase date. During 2015, $62,078 in aggregate principal amount of the 2021 Notes were converted under the Sales Price Condition for cash in the amount of $62,079 and the issuance of 1,270,539 shares (pre-split) of Common Stock. As a result of the conversion, the Company recorded a loss on extinguishment of debt in the amount of $5,271 during the year ended December 31, 2015. As of December 31, 2017 , $6,031 in aggregate principal amount of the 2021 Notes remained outstanding. The Company separately allocated the proceeds for the issuance of the 2021 Notes to a liability component and an equity component, which is the embedded conversion option. The equity component was reported as an adjustment to paid-in-capital, net of tax, and is reflected as an original issue discount (“OID”). The OID of $41,679 and deferred origination costs relating to the liability component of $4,750 are being amortized into interest expense over the term of the 2021 Notes. After considering the contractual interest payments and amortization of the original discount, the effective interest rate of the 2021 Notes was 8.57% . Transaction costs of $1,250 associated with the equity component were netted in paid-in-capital. 2.75% Convertible Senior Notes due 2044 During 2014, the Company entered into separate, privately negotiated exchange agreements under which the Company retired $131,881 in aggregate principal amount of the then outstanding 2021 Notes in exchange for issuance of a new series of 2.75% 2044 Notes in an aggregate principal amount of $158,257 and the issuance of 2,731,727 shares (pre-split) of Common Stock. The Company also entered into separate, privately negotiated purchase agreements (the “Purchase Agreements”) to issue an additional $76,000 in aggregate principal amount of the 2044 Notes for a price equal to 90% of their face value. The principal amount of the 2044 Notes accretes at a rate of 6% per year compounding on a semi-annual basis, until December 15, 2024. The accreted portion of the principal is payable in cash upon maturity but does not bear cash interest and is not convertible into shares of Common Stock. The 2044 Notes will mature on December 15, 2044 (the “Maturity Date”), unless repurchased earlier or redeemed by the Company or converted. On or before December 15, 2018, the 2044 Notes will be subject to redemption for cash, in whole or in part, at the Company’s option, provided the trading price of Common Stock equals or exceeds $48.67 (or 130% of the then applicable conversion price) for the required measurement period, at a redemption price equal to 100% of the principal amount of the 2044 Notes to be redeemed, plus any accrued and unpaid interest. Thereafter, the 2044 Notes will be subject to redemption for cash, in whole or in part, at the Company’s option at a redemption price equal to 100% of the accreted amount of the 2044 Notes to be redeemed, plus any accrued and unpaid interest. In addition, holders of the 2044 Notes will have the right to require the Company to purchase their 2044 Notes for cash, in whole or in part, on December 15, 2024 or upon the occurrence of a fundamental change. In each such case, the repurchase price would be 100% of the principal amount of the 2044 Notes being repurchased, plus any accrued and unpaid interest. Prior to September 15, 2044, the 2044 Notes will be convertible only under the same circumstances described above for the 2021 Notes. On or after September 15, 2044, the 2044 Notes will be convertible at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date. The conversion rate as of December 31, 2017 is equal to 26.9961 shares of Common Stock per $1,000 principal amount of 2044 Notes, which corresponds to a conversion price of approximately $37.04 per share of Common Stock. Following certain corporate transactions that occur on or prior to December 15, 2018, or if the Company redeems the 2044 Notes on or prior to December 15, 2018, the Company will increase the conversion rate for a holder that elects to convert its 2044 Notes in connection with such corporate transaction or redemption. Upon conversion of the 2044 Notes, the Company will, at its election, pay or deliver, as the case may be, cash, shares of Common Stock or a combination of cash and shares of Common Stock. The 2044 Notes bear interest at a rate of 2.75% per annum, payable semi-annually in arrears on June 15th and December 15th of each year, beginning on June 15, 2015. Beginning with the six-month period starting December 15, 2021, holders of the 2044 Notes will receive contingent interest for certain periods if the trading price of the 2044 Notes is greater than or equal to 130% of the principal amount of the 2044 Notes. The amount of contingent interest payable per $1,000 principal amount of 2044 Notes in respect of any contingent interest period is equal to 0.25% of the average trading price of the 2044 Notes during the specified measurement period. Any contingent interest payable on the 2044 Notes will be in addition to the regular interest payable on the 2044 Notes. The 2044 Notes will rank pari passu with the Company’s existing and future senior unsecured debt, including the 2021 Notes that will remain outstanding. The 2044 Notes will be effectively subordinated to the existing and future secured indebtedness of the Company to the extent of the value of the collateral securing those obligations and structurally subordinated to the existing and future indebtedness of the Company’s subsidiaries. Each $1,000 principal amount at maturity of 2044 Notes has an issue price of $900 for purposes of the indenture for the 2044 Notes. An amount equal to the difference between the issue price and the principal amount at maturity will accrue in accordance with a schedule set forth in the indenture. The issue price plus such accrued amount per $1,000 principal amount at maturity of the 2044 Notes is referred to herein as the “accreted principal amount.” The Company separately accounts for the liability and equity components of its 2044 Notes in a manner that reflects the Company's nonconvertible debt borrowing rate when interest is recognized in subsequent periods. The Company measured the debt component of the 2044 Notes using an effective interest rate of 7.46% . Upon issuance of the 2044 Notes in December 2014, in accordance with accounting standards related to convertible debt instruments that may be settled in cash upon conversion, the Company recorded an OID of $53,374 , thereby reducing the initial carrying the value of the 2044 Notes from $210,831 to $157,457 and recorded an equity component net of tax of $34,693 . The following table shows the amounts recorded, not including deferred financing costs, for the 2021 Notes and 2044 Notes as of December 31, 2017 and 2016 : December 31, 2017 2016 Outstanding Principal Unamortized OID Net Carrying Amount Outstanding Principal Unamortized OID Net Carrying Amount 2021 Notes $ 6,031 $ (611 ) $ 5,420 $ 6,031 $ (735 ) $ 5,296 2044 Notes 217,697 (42,546 ) 175,151 215,424 (46,528 ) 168,896 Total $ 223,728 $ (43,157 ) $ 180,571 $ 221,455 $ (47,263 ) $ 174,192 6.125% Notes due 2023 In August 2013, the Company issued $250,000 aggregate principal amount of its 2023 Notes to certain initial purchasers in a private placement. The 2023 Notes bear interest at a rate equal to 6.125% per year, payable semiannually in arrears on February 15th and August 15th of each year. The 2023 Notes will mature August 15, 2023 , unless repurchased earlier by the Company. Fees associated with the Notes were approximately $2,740 . The indenture governing the Notes contains covenants whereby the interest rates will increase by 0.50% per year if the Company's consolidated leverage ratio exceeds 30% and does not exceed 35% and will increase an additional 1.00% per year (for an aggregate increase of 1.50% per year) if the consolidated leverage ratio exceeds 35% . The consolidated leverage ratio, as calculated under the indenture governing the 2023 Notes, was less than 30% as of December 31, 2017 . It is an event of default if the Company has a consolidated leverage ratio in excess of 35% for a period of 30 days, unless in connection with an acquisition, in which case the grace period is 18 months . The indenture governing the 2023 Notes also contains customary covenants, such as reporting of annual and quarterly financial results, and restrictions on certain mergers and consolidations, a limitation on liens, and a limitation on the disposition of stock of certain of the Company's subsidiaries. The 2023 Notes rank equally with existing and future unsecured and unsubordinated indebtedness, including the Company's convertible senior notes and amounts under the Credit Agreement. Subordinated Debt 2033-2037 TPS Notes In connection with the acquisition of Republic, the Company assumed Republic's outstanding trust preferred securities. Republic participated in the private placement of floating rate capital securities through five capital trusts. Each trust was created solely for the purpose of issuing trust preferred securities. Republic has guaranteed the payment by the trusts of distributions and other amounts under the capital securities to the extent that the trusts have funds available for such payments. The trusts invested the proceeds from the private placement in junior subordinated debentures issued by Republic. The trusts must redeem the capital securities when the debentures are paid at maturity or upon any earlier prepayment of the debentures. The debentures may be prepaid if certain events occur, including a change in the tax status or regulatory capital treatment of the capital securities or a change in the existing laws that require the trusts to register as an investment company. Under the provisions of the debentures, the Company has the right to defer payment of interest on the debentures at any time, or from time to time, for up to twenty consecutive quarterly periods. If interest payments on the debentures are deferred, the distributions on the capital securities will also be deferred. In accordance with FASB ASC 810-10-25, the Company does not consolidate such special purpose trusts, as the Company is not considered to be the primary beneficiary. The equity investment, totaling $2,786 as of December 31, 2017 on the Company's balance sheet, represents the Company's ownership of common securities issued by the trusts. The table below summarizes the Company’s trust preferred securities assumed in the Republic acquisition as of December 31, 2017 : Name of Trust Aggregate Aggregate Aggregate Stated Per Annum RIG Capital Trust I $ 10,000 $ 310 $ 10,310 9/30/2033 5.695 % (1) RIG Capital Statutory Trust II 20,000 619 20,619 10/29/2033 5.228 % (2) RIG Capital Trust III 20,000 619 20,619 12/15/2036 4.788 % (3) RIG Capital Trust IV 25,000 774 25,774 6/15/2037 4.788 % (3) RIG Capital Trust V 15,000 464 15,464 9/15/2037 4.888 % (4) Total $ 90,000 $ 2,786 $ 92,786 (1) The interest rate is three-month LIBOR plus 4.00% . (2) The interest rate is three-month LIBOR plus 3.85% . (3) The interest rate is three-month LIBOR plus 3.20% . (4) The interest rate is three-month LIBOR plus 3.30% . 2035-2037 TPS Notes The Company has established four special purpose trusts for the purpose of issuing trust preferred securities. The proceeds from such issuances, together with the proceeds of the related issuances of common securities of the trusts, were invested by the trusts in junior subordinated debentures issued by the Company. In accordance with FASB ASC 810-10-25, the Company does not consolidate such special purpose trusts, as the Company is not considered to be the primary beneficiary. The equity investment, totaling $3,714 as of December 31, 2017 on the Company’s consolidated balance sheet, represents the Company’s ownership of common securities issued by the trusts. The debentures require interest-only payments to be made on a quarterly basis, with principal due at maturity. The debentures contain covenants that restrict declaration of dividends on the Company’s common stock under certain circumstances, including default of payment. The Company incurred $2,605 of placement fees in connection with these issuances which is being amortized over thirty years . The table below summarizes the Company’s trust preferred securities as of December 31, 2017 : Name of Trust Aggregate Liquidation Amount of Trust Preferred Securities Aggregate Liquidation Amount of Common Securities Aggregate Principal Amount of Notes Stated Maturity of Notes Per Annum Interest Rate of Notes AmTrust Capital Financing Trust I $ 25,000 $ 774 $ 25,774 3/17/2035 5.000 % (1) AmTrust Capital Financing Trust II 25,000 774 25,774 6/15/2035 4.988 % (1) AmTrust Capital Financing Trust III 30,000 928 30,928 9/15/2036 4.888 % (2) AmTrust Capital Financing Trust IV 40,000 1,238 41,238 3/15/2037 4.588 % (3) Total $ 120,000 $ 3,714 $ 123,714 (1) The interest rate is three-month LIBOR plus 3.40% . (2) The interest rate is three-month LIBOR plus 3.30% . (3) The interest rate is three-month LIBOR plus 3.00% . 7.25% 2055 Notes In June 2015, the Company issued $150,000 in aggregate principal amount of its 7.25% 2055 Notes through an underwritten public offering. The 7.25% 2055 Notes bear interest at an annual rate equal to 7.25% , payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing September 15, 2015. The 7.25% 2055 Notes mature on June 15, 2055 . The Company has the right to redeem the 7.25% 2055 Notes, in whole or in part, on June 18, 2020 , or on any interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the 7.25% 2055 Notes plus accrued and unpaid interest to, but not including, the date of redemption. The 7.25% 2055 Notes are the Company’s subordinated unsecured obligations and rank (i) senior in right of payment to any existing and future junior subordinated debt, (ii) equal in right of payment with any unsecured, subordinated debt that the Company incurs in the future that ranks equally with the 7.25% 2055 Notes (including the 7.50% 2055 Notes discussed below), and (iii) subordinate in right of payment to any of the Company’s existing and future senior debt. In addition, the 7.25% 2055 Notes are structurally subordinated to all existing and future indebtedness, liabilities and other obligations of the Company’s subsidiaries. The Company incurred $4,990 in deferred origination costs associated with the 7.25% 2055 Notes, which is being amortized over the term of the 7.25% 2055 Notes. Deferred origination costs are included in other assets on the accompanying consolidated balance sheets. 7.50% 2055 Notes In September 2015, the Company issued $135,000 in aggregate principal amount of its 7.50% 2055 Notes through an underwritten public offering. The 7.50% 2055 Notes bear interest at an annual rate equal to 7.50% , payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing December 15, 2015. The 7.50% 2055 Notes mature on September 15, 2055 . The Company has the right to redeem the 7.50% 2055 Notes, in whole or in part, on September 16, 2020 , or on any interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the 7.50% 2055 Notes plus accrued and unpaid interest to, but not including, the date of redemption. The 7.50% 2055 Notes are the Company’s subordinated unsecured obligations and rank (i) senior in right of payment to any of the Company's existing and future junior subordinated debt, (ii) equal in right of payment with any of the Company's existing and future unsecured, subordinated debt that ranks equally with the 7.50% 2055 Notes (including the 7.25% 2055 Notes), and (iii) subordinate in right of payment to any of the Company’s existing and future senior debt. In addition, the 7.50% 2055 Notes are structurally subordinated to all existing and future indebtedness, liabilities and other obligations of the Company’s subsidiaries. The Company incurred $4,461 in deferred origination costs associated with the 7.50% 2055 Notes, which is being amortized over the term of the 7.50% 2055 Notes. Deferred origination costs are included in other assets on the accompanying consolidated balance sheets. Secured Loan Agreements On April 7, 2016, the Company entered into a ten -year secured loan agreement with Citigroup Global Markets Realty Corp. ("Citigroup"), in the aggregate amount of $29,000 . The loan is secured by a commercial office building the Company owns in Dallas, Texas. The loan bears interest at a fixed rate of 4.96% per annum and required monthly interest only payments through May 6, 2017 , principal and interest payments of approximately $169 through March 6, 2026 and then payment of the remaining principal at maturity. The Company recorded interest expense, including amortization of the deferred origination costs and fees associated with the loan agreement, of approximately $1,465 and $1,109 for the year ended December 31, 2017 and 2016 , respectively. Citigroup transferred its interest under the loan agreement to Citigroup Commercial Mortgage Trust 2016- C1, a commercial mortgage securitization vehicle. On April 6, 2016, the Company through a wholly-owned subsidiary, entered into a five -year secured term loan agreement with Lloyd's Bank PLC in the aggregate amount of £ 7,800 (or $10,542 at December 31, 2017 ) to finance the purchase of a commercial office building in Nottingham, U.K. The loan bears a variable rate of interest based on LIBOR plus a margin and was 2.68% as of December 31, 2017 . The Company had deferred financing costs of £ 78 (or $105 at December 31, 2017 ) related to the term loan. The mortgage requires quarterly principal payments of £30 and interest for the term of the loan with the remaining principal to be paid at maturity. The Company recorded interest expense, including amortization of the deferred origination costs and fees associated with the loan agreement, of approximately $289 and $236 for the ended December 31, 2017 and 2016 , respectively. Pursuant to a covenant in the agreement, if the loan exceeds 70% of the fair value of the property, the Company is required to pay the lender the entire amount necessary to reduce the outstanding principal balance to be equal to or less than 70% of the fair value of the building. On August 29, 2014 , the Company entered into a five -year secured loan agreement with Key Equipment Finance, which was subsequently assigned to RBS Citizens Bank, in the aggregate amount of $30,500 to finance the purchase of an aircraft. The loan bears interest at a fixed rate of 2.27% per annum and requires monthly installment payments of approximately $538 through August 31, 2019 . The Company recorded interest expense of approximately $320 , $458 and $592 for the years ended December 31, 2017, 2016 and 2015 , respectively, related to this agreement. The loan is secured by the aircraft. The Company, through a subsidiary, entered into a seven -year mortgage agreement in the aggregate principal amount of $10,250 to finance the purchase of a building. The mortgage bears interest at an annual rate equal to 3.75% and matures on September 18, 2022 , with an option to extend the maturity date for an additional five years. The mortgage did not require monthly installments of principal until November 2017, but now requires monthly installment payments of approximately $47 . The final monthly payment will equal the then outstanding principal balance of the mortgage, together with all accrued and unpaid interest. The Company recorded interest expense of approximately $390 , $391 and $89 for the years ended December 31, 2017, 2016 and 2015 , respectively, related to this agreement. On January 12, 2017 , the Company, through three wholly-owned subsidiaries, entered into a ten -year secured loan agreement with Teachers Insurance and Annuity Association of America in the aggregate amount of £73,500 (or $99,321 as of December 31, 2017 ) to finance the purchase of a commercial office building in London, England. The loan bears interest at an annual rate of 3.45% and matures on January 15, 2027 . The loan requires quarterly interest payments for the term of the loan, with the principal and any accrued interest to be paid at maturity. The Company recorded interest expense of approximately $3,158 for the year ended December 31, 2017 related to this agreement. On February 24, 2017 , the Company, through a wholly-owned subsidiary, entered into a ten-year secured loan agreement with Citigroup in the aggregate amount of $11,350 to finance the purchase of a commercial office building in Alpharetta, Georgia. The loan bears interest at an annual rate of 4.67% and matures on March 6, 2027 . The loan requires monthly interest only payments through March 6, 2019 , principal and interest payments of approximately $64 through February 6, 2027 , with any remaining principal and accrued interest to be paid at maturity. The Company recorded interest expense of approximately $484 for the year ended December 31, 2017 related to this agreement. Promissory Notes On April 18, 2016, in connection with the acquisition of Republic Companies, Inc. and its affiliates ("Republic"), the Company issued a term promissory note ("TPM") to Delek Finance U.S. Inc. in the amount of $104,685 as part of the consideration. See Note 5. "Acquisitions" for a description of this transaction. The principal was to be paid in four equal installments on each of the first four anniversaries of the issuance date. The note bears interest of 5.75% per annum and is payable from time to time based on the outstanding principal balance until the promissory note is fully paid. In the event that indebtedness under the Company's revolving credit facility or the Company's 2023 Notes is required to be paid on an accelerated basis, the holder of the TPM may cause the Company to repay unpaid principal and interest immediately. The Company made the first principal payment of approximately $26,171 on March 30, 2017 and prepaid the second principal payment of approximately $25,910 (representing 99% of the principal payment due in April 2018) on June 29, 2017 . The parties agreed that the June 29, 2017 prepayment would satisfy in full the April 2018 principal payment. The remaining principal is payable in two installments on each of the third and fourth anniversaries of the issuance date. The Company recorded interest expense, including amortization of the deferred origination costs and fees associated with the loan agreement, of approximately $3,914 and $4,314 , respectively, for the years ended December 31, 2017 and 2016 . In September 2012 , as part of its participation in the New Market Tax Credit Program discussed in Note 22. "New Market Tax Credit", the Company entered into two promissory notes totaling $8,000 . The loans are for a period of 15 years and have an average interest rate of 2.0% per annum. The Company recorded approximately $1,430 of deferred origination costs associated with the promissory notes. The Company recorded interest expense of approximately $344 , $344 , and $344 for the years ended December 31, 2017, 2016 and 2015 , respectively, related to the promissory notes. The Company assumed two promissory notes in 2013 totaling $6,500 as a result of its acquisition of Mutual Insurers Holding Company. The principal of these notes is due in 2034 and 2035. The notes require the payment of interest on a quarterly basis and both had an interest rate of 4.6% as of December 31, 2017 . The Company recorded $327 , $296 , and $278 of interest expense for the years ended December 31, 2017, 2016 and 2015 , respectively, related to the promissory notes. Funds at Lloyd's Facility On November 8, 2017, the Company and certain of its wholly-owned subsidiaries entered into an Amending and Restating Agreement ("Funds at Lloyd's Facility") relating to its existing £515,000 (or $695,920 at December 31, 2017 ) credit facility agreement ("Preceding Credit Facility") dated November 3, 2016 with ING Bank N.V., London Branch, the Bank of Nova Scotia, London Branch and Bank of Montreal, London Branch. The amended and restated Funds at Lloyd's Facility decreased the maximum amount of the letter of credit facility to £455,000 (or $614,842 at December 31, 2017 ) to be used to support the Company’s capacity at Lloyd’s as a member and/or reinsurer of Syndicates 2526, 1206, 44, 1861 and 5820 for the 2018 underwriting year of account, as well as prior open years of account. The reduction in the size of the facility resulted from a restructuring of the facility to exclude solvency deficits as the Company will fun |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The Company structures its reinsurance programs by analyzing its tolerance for risk in each line of business and on an overall consolidated basis, based on a number of factors, including market conditions, pricing, competition and the inherent risks associated with each business type. The Company generally purchases reinsurance to reduce its net liability on individual risks and to protect against catastrophe losses and volatility. The Company retains underwriting risk in certain lines of business in order to capture a greater proportion of expected underwriting profits. The Company has chosen not to purchase any reinsurance on businesses where volatility or catastrophe risks are considered remote and policy limits are within its risk tolerance. The Company may purchase reinsurance on a proportional basis to cover loss frequency, individual risk severity and catastrophe exposure. The Company may also purchase reinsurance on an excess of loss basis to cover individual risk, severity and catastrophe exposure. Additionally, the Company may obtain facultative reinsurance protection on a single risk. The type and amount of reinsurance the Company purchases varies year to year based on its risk assessment, its desired retention levels based on profitability and other considerations, along with the market availability of quality reinsurance at prices the Company considers acceptable. Our reinsurance programs renew throughout the year, and the price changes in recent years have not been material to the Company's net underwriting results. The Company's reinsurance generally does not cover war or nuclear, biological, chemical or radiological terrorism risks. In its proportional reinsurance programs, the Company generally receives a commission on the premium ceded to reinsurers. This “ceding commission” compensates the Company's insurance companies for the direct costs associated with production of the business, the servicing of the business during the term of the policies ceded, and the costs associated with placement of reinsurance that benefits the proportional programs. In addition, certain of the Company's reinsurance treaties allow it to share in any net profits generated under such treaties with the reinsurers. Various reinsurance brokers may arrange for the placement of this reinsurance coverage on the Company's behalf and are compensated, directly or indirectly, by the reinsurers. The Company also places reinsurance with direct reinsurance markets and enters reinsurance relationships with third-party captives formed by agents and other business partners as a mechanism for sharing risk and profit. Effective October 1, 2017, Technology Insurance Company (“TIC”) entered into an intercompany reinsurance pooling agreement (“Pooling Agreement”) with sixteen of our U.S. property casualty insurance affiliates (Pool affiliates). Under the Pooling Agreement, the Pool affiliates agreed to cede and transfer to TIC and TIC agreed to assume (1) 100% of the Pool Affiliates’ respective liabilities on all insurance policies and all assumed reinsurance contracts that were in force as of October 1, 2017, or that had expired or had been terminated or non-renewed as of October 1, 2017; and (2) 100% of the Pool Affiliates’ respective liabilities on all insurance policies and all assumed reinsurance contracts issued subsequent to October 1, 2017. In addition, TIC retrocedes 45% of its net retention to three affiliates. These retrocessions are net of a quota share reinsurance agreement between TIC and its affiliate, AmTrust International Insurance, Ltd. (“AII”), whereby TIC retrocedes and AII assumes 65% of its customary insurance business obligations, which consist primarily of unearned premiums as of the effective date, gross written premiums, reserves for loss and LAE and unallocated LAE, written as of October 1, 2017, and 50% of the customary insurance business obligations written on or after October 1, 2017. In order to reduce its exposure to reinsurance credit risk, the Company evaluates the financial condition of its reinsurers and places its reinsurance with a diverse group of companies and syndicates that it believes to be financially sound. The Company carefully monitors the credit quality of its reinsurers when the Company places new and renewal reinsurance, as well as on an ongoing, current basis. The Company uses objective criteria to select and retain its reinsurers, including requiring them to be fully collateralized, maintain minimum surplus of $500,000 or have a financial strength rating of “A-” or better from A.M. Best Company, Inc. or Standard & Poor's Corporation. The Company approves exceptions to these criteria when warranted. The Company monitors its financial exposure to the reinsurance market and takes necessary actions in an attempt to mitigate its exposure to possible loss. The Company limits its liquidity exposure for uncollected recoverables by holding funds, letters of credit or other security, with the result that net balances due from reinsurers are significantly less than the gross balances shown in its consolidated balance sheets. The Company monitors the collectability of its reinsurance recoverables and records a reserve for uncollectible reinsurance when it determines an amount is potentially uncollectible. The Company's evaluation is based on its periodic reviews of its disputed and aged recoverables, as well as its assessment of recoverables due from reinsurers known to be in financial difficulty. In some cases, the Company makes estimates as to what portion of a recoverable may be uncollectible. The Company's estimates and judgment about the collectability of the recoverables and the financial condition of reinsurers can change, and these changes can affect the level of reserve required. Reinsurance Programs and Retentions The following tables provide a summary of the Company's primary reinsurance programs as of December 31, 2017 for the U.S. and internationally: 2017 Domestic Reinsurance Programs Type of Reinsurance Retention Event Protection Coverage Workers’ Compensation, Excess of Loss $ 10,000 $ 710,000 100% of $700,000 Property, Per Risk Excess of Loss $ 3,000 $ 36,000 100% of $33,000 Property, Catastrophe Excess of Loss $ 20,000 $ 830,000 100% of $810,000 Surety, Excess of Loss $ 500 $ 30,000 89% of $29,500 Casualty/Professional, Excess of Loss $ 3,000 $ 50,000 100% of $47,000 Umbrella, Quota Share $ 1,500 $ 10,000 100% of $8,500 Equipment Breakdown, Quota Share $ — $ 100,000 100% of $100,000 2017 International Reinsurance Programs Type of Reinsurance Retention Event Protection Coverage Property, Per Risk Excess of Loss (AEL) $ 640 $ 6,400 100% of $5,760 Property, Catastrophe Excess of Loss (AEL and ATL) $ 6,000 $ 78,000 100% of $72,000 Property, Per Risk Excess of Loss (ATL) $ 2,500 $ 10,000 100% of $7,500 Surety, Excess of Loss and Quota Share (AEL) $ 5,650 $ 39,550 100% of $33,900 Casualty, Excess of Loss (AEL) $ 3,000 $ 15,000 100% of $12,000 Accident and Health, Excess of Loss (AEL) $ 800 $ 25,600 100% of $24,960 Car Care, Excess of Loss (AEL) $ 1,000 $ 65,000 100% of $64,000 Medical Malpractice, Quota Share (AEL) $ 10,400 $ 13,000 20% of $13,000 Medical Malpractice, Quota Share (AIUL) $ 7,800 $ 13,000 40% of $13,000 Personal Accident, Excess of Loss (ATL) $ 2,000 $ 60,000 100% of $58,000 Pecuniary Risks (AEL and ATL) $ 3,000 $ 49,000 100% of $46,000 If the Company incurs catastrophe losses and loss settlement expenses that exceed the coverage limits of its reinsurance program, many of its property catastrophe programs have a fixed number of reinstatements. For example, if the Company incurs a property catastrophe loss, it is required to pay the reinsurers a reinstatement premium equal to the percentage of the limit exhausted by the loss, multiplied by the amount of the original reinsurance premium. The Company has a master agreement with Maiden, as amended, by which its Bermuda subsidiary, AII, and Maiden Reinsurance entered into a quota share reinsurance agreement, as amended (the “Maiden Quota Share”). For a description of this agreement, see Note 15. “Related Party Transactions.” Effective June 30, 2017 , the Company entered into an adverse loss development cover agreement with Premia Reinsurance Ltd. ("Premia"). Under the agreement, Premia will pay the Company for ultimate net losses paid by the Company in excess of a retention of $5,962,230 , subject to an aggregate limit of $1,025,000 , which provides $400,000 of coverage in excess of the Company's carried loss reserves as of March 31, 2017 in the amount of approximately $6,587,230 . The consideration for this agreement is a premium amount of $675,000 , of which $50,000 represents a payment for the coverage above the carried loss reserves of approximately $6,587,230 , and an annual claims monitoring fee paid to Premia. The Company deposited a total of $679,785 representing the premium amount of $675,000 and interest of $4,785 into a collateral trust account established to secure Premia's claims payment obligation to the Company. Premia deposited an incremental $100,000 of excess collateral at inception, and is obligated to deposit incremental collateral in accordance with a pre-agreed schedule. The Company accounts for the agreement as retroactive reinsurance. For the year ended December 31, 2017 , the Company recorded $400,000 of net adverse loss development covered under this agreement, which increased the retroactive reinsurance recoverable to the aggregate limit of $1,025,000 as of December 31, 2017 . The Company recorded the retroactive reinsurance recoverable in excess of the consideration as a deferred gain that is amortized to earnings using the interest method over the estimated claims settlement period. As of December 31, 2017 , the deferred gain of $330,029 , net of accretion and amortization, is reported as "Deferred gain on retroactive reinsurance" on the consolidated balance sheets. The effect of reinsurance with related and unrelated companies on premiums and losses for 2017 , 2016 and 2015 are as follows: Year Ended December 31, 2017 2016 2015 Written Earned Written Earned Written Earned Premiums: Direct $ 8,250,524 $ 7,710,610 $ 7,727,657 $ 7,370,202 $ 6,473,338 $ 5,994,848 Assumed 184,106 248,457 221,613 256,182 326,199 369,480 Ceded (3,282,114 ) (2,902,969 ) (3,097,943 ) (2,958,419 ) (2,537,609 ) (2,343,087 ) Total $ 5,152,516 $ 5,056,098 $ 4,851,327 $ 4,667,965 $ 4,261,928 $ 4,021,241 As of December 31, 2017 2016 2015 Assumed Ceded Assumed Ceded Assumed Ceded Loss and LAE reserves $ 1,038,834 $ (4,641,387 ) $ 890,053 $ (3,873,786 ) $ 692,447 $ (2,643,443 ) Unearned premiums 68,422 (2,137,347 ) 132,840 (1,994,092 ) 167,409 (1,530,551 ) Loss and LAE expenses incurred 227,291 (2,245,191 ) 461,556 (1,776,538 ) 352,362 (1,497,558 ) The Company continuously updates the reserves on these lines of business based on information available from the ceding insurers. The Company had $1,824 and $4,746 of commutations that were included in ceded reinsurance treaties, as of 2017 and 2016, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | . Related Party Transactions Significant Transactions with Maiden Holdings, Ltd. The Company has various reinsurance and service agreements with Maiden Holdings, Ltd. (“Maiden”). Maiden is a publicly-held Bermuda insurance holding company (Nasdaq: MHLD) formed by Michael Karfunkel, George Karfunkel and Barry Zyskind, principal stockholders, and, respectively, the former chairman of the board of directors, a director, and the current Chairman, Chief Executive Officer and President of the Company. As of December 31, 2017 , two of our principal stockholders, Leah Karfunkel (one of the Company's directors and co-trustee of the Michael Karfunkel Family 2005 Trust (the "Trust")), and Barry Zyskind, owned or controlled approximately 8.2% , and 7.7% , respectively, of the issued and outstanding capital stock of Maiden. Mr. Zyskind serves as the non-executive chairman of Maiden’s board of directors. Maiden Reinsurance Ltd. ("Maiden Reinsurance"), a wholly-owned subsidiary of Maiden, is a Bermuda reinsurer. The following section describes the agreements in place between the Company and Maiden. Reinsurance Agreements with Maiden Holdings, Ltd. In 2007 , the Company and Maiden entered into a master agreement, as amended, by which the parties caused the Company’s Bermuda subsidiary, AII, and Maiden Reinsurance to enter into a quota share reinsurance agreement (the “Maiden Quota Share”), as amended, by which AII retrocedes to Maiden Reinsurance certain lines of business assumed by AII from the Company’s U.S., Irish and U.K. (excluding Motors Insurance Company Limited, AMT Mortgage Insurance Limited and the Lloyd's syndicates) insurance companies (the “AmTrust Ceding Insurers”), net of the cost of unaffiliated inuring reinsurance (and in the case of the Company’s U.K. insurance subsidiary, AmTrust Europe Ltd. ("AEL"), net of commissions), an amount equal to 40% of the premium written by the AmTrust Ceding Insurers. AII also retrocedes 40% of losses. Effective July 1, 2018, with respect to AEL only, AII will assume from AEL and AII with retrocede to Maiden Reinsurance an amount equal to 20% of AEL's premium and 20% of related losses. Certain business that the Company commenced writing after the effective date of the Maiden Quota Share, including, among other lines, the Company's European medical liability business discussed below and business assumed from Tower pursuant to the cut-through quota share reinsurance agreement, is not ceded to Maiden Reinsurance under the Maiden Quota Share (ceded business defined as “Covered Business”). AII receives a ceding commission of 31% of ceded written premiums with respect to all Covered Business other than retail commercial package business, for which the ceding commission is 34.375% . With regards to the Specialty Program portion of Covered Business only, the Company will be responsible for ultimate net loss otherwise recoverable from Maiden Reinsurance to the extent that the loss ratio to Maiden Reinsurance, which shall be determined on an inception to date basis from July 1, 2007 through the date of calculation, is between 81.5% and 95% (the “Specialty Program Loss Corridor”). For the purpose of determining whether the loss ratio falls within the Specialty Program Loss Corridor, workers' compensation business written in the Company's Specialty Program segment from July 1, 2007 through December 31, 2012 is excluded from the loss ratio calculation. The Maiden Quota Share was renewed through June 30, 2019 and will automatically renew for successive three -year terms unless either AII or Maiden Reinsurance notifies the other of its election not to renew no less than nine months prior to the end of any such three-year term. In addition, either party is entitled to terminate on thirty days’ notice or less upon the occurrence of certain early termination events, which include a default in payment, insolvency, change in control of AII or Maiden Reinsurance, run-off, or a reduction of 50% or more of the shareholders’ equity of Maiden Reinsurance or the combined shareholders’ equity of AII and the AmTrust Ceding Insurers. The Company, through its subsidiaries AEL and AIU, has a reinsurance agreement with Maiden Reinsurance by which the Company cedes to Maiden Reinsurance 40% of its European medical liability business, including business in force at April 1, 2011 . From April 1, 2011 through June 30, 2016 , that percentage ceded by both AEL and AIU was 40% . Effective July 1, 2016 , the percentage ceded by AEL decreased to 32.5% , and, effective July 1, 2017 , decreased to 20% . The quota share had an initial term of one year and was renewed through March 31, 2019 . The agreement can be terminated by either party on four months’ prior written notice. Maiden Reinsurance pays the Company a 5% ceding commission, and the Company will earn a profit commission of 50% of the amount by which the ceded loss ratio is lower than 65% . The Company did not receive any profit commissions for this business for the years ended December 31, 2017 or 2016 . The following is the effect on the Company’s results of operations for the years ended December 31, 2017, 2016 and 2015 related to the Maiden Quota Share agreement: Year Ended December 31, 2017 2016 2015 Results of operations: Premiums written – ceded $ (2,044,770 ) $ (2,012,452 ) $ (1,899,148 ) Change in unearned premiums – ceded 38,433 66,938 182,967 Earned premiums – ceded $ (2,006,337 ) $ (1,945,514 ) $ (1,716,181 ) Ceding commissions on premiums written $ 649,280 $ 654,140 $ 564,156 Ceding commissions – deferred (39,959 ) (54,631 ) (53,364 ) Ceding commissions – earned $ 609,321 $ 599,509 $ 510,792 Incurred loss and loss adjustment expenses – ceded $ 1,561,261 $ 1,312,347 $ 1,116,308 Note Payable to Maiden — Collateral for Proportionate Share of Reinsurance Obligations In conjunction with the Maiden Quota Share, as described above, the Company entered into a loan agreement with Maiden Reinsurance during the fourth quarter of 2007, whereby Maiden Reinsurance loaned to the Company the amount equal to AII's quota share of the obligations of the AmTrust Ceding Insurers that AII was then obligated to secure. Advances under the loan, which were made in three separate tranches of $113,542 (December 2007), $20,192 (April 2008) and $34,240 (June 2008), are secured by promissory notes and totaled approximately $167,975 as of December 31, 2017 and 2016 . The loan agreement provided for interest at a rate of LIBOR plus 90 basis points (which is applicable to all three advances) and is payable on a quarterly basis. The Company recorded $3,447 , $2,360 and $1,865 of interest expense during the years ended December 31, 2017, 2016 and 2015 , respectively. The maturity date with respect to each advance was ten years from the date the advance was made. On December 18, 2017, the Company and Maiden Reinsurance agreed to extend the maturity date of the loan to coincide with the renewal date of the Maiden Quota Share ( June 30, 2019 ) and adjust the interest rate to the federal funds rate plus 200 basis points. Effective December 1, 2008 , AII and Maiden Reinsurance entered into a Reinsurer Trust Assets Collateral agreement whereby Maiden Reinsurance is required to provide AII the assets required to secure Maiden’s proportional share of AII’s obligations to the AmTrust Ceding Insurers. In addition, pursuant to the quota share reinsurance agreement among AEL, AIU and Maiden Reinsurance for the Company’s European medical liability business, Maiden Reinsurance is required to provide AEL and AIU the assets required to secure AEL’s and AIU’s obligations. The aggregate amount of this collateral as of December 31, 2017 was approximately $3,552,623 . Maiden retains ownership of the collateral in the trust account. Reinsurance Brokerage Agreement The Company, through a subsidiary, has a reinsurance brokerage agreement with Maiden. Pursuant to the brokerage agreement, the Company provides brokerage services relating to the Maiden Quota Share for a fee equal to 1.25% of reinsured premium. The Company recorded $24,177 , $26,091 and $24,130 of brokerage commissions during the years ended December 31, 2017, 2016 and 2015 , respectively. The brokerage commissions were recorded as a component of service and fee income. Asset Management Agreement A subsidiary of the Company manages the assets of certain of Maiden's subsidiaries for an annual rate of 0.20% of the average aggregate value of the assets under management for the preceding quarter if the average aggregate value for the preceding quarter is $1,000,000 or less, and an annual rate of 0.15% of the average aggregate value of the assets under management for the preceding quarter if the average aggregate value for the preceding quarter is more than $1,000,000 . The Company managed approximately $4,974,676 of assets as of December 31, 2017 , related to this agreement. As a result of this agreement, the Company recorded approximately $7,474 , $6,925 and $6,057 of asset management fees for the years ended December 31, 2017, 2016 and 2015 , respectively. The asset management fees were recorded as a component of service and fee income. Significant Transactions with National General Holding Corp. NGHC is a publicly-held specialty personal lines insurance holding company (Nasdaq: NGHC) that operates twenty-two insurance companies in the U.S. and provides a variety of insurance products, including personal and commercial automobile, homeowners and umbrella, and supplemental health. NGHC's two largest stockholders are the Trust and a grantor retained annuity trust controlled by Leah Karfunkel. Leah Karfunkel, who is co-trustee of the Trust along with Barry Zyskind, is a member of the Company's board of directors and the mother-in-law of Barry Zyskind, the Company's Chairman, President and Chief Executive Officer. The ultimate beneficiaries of the Trust include Leah Karfunkel’s children, one of whom is married to Mr. Zyskind. In addition, Barry Karfunkel, the son of Leah Karfunkel and brother-in-law of Barry Zyskind, is the chief executive officer of NGHC and Barry Zyskind is NGHC's non-executive chairman of the board. In accordance with ASC 323-10-15, Investments-Equity Method and Joint Ventures , the Company accounts for its investment in NGHC under the equity method as it has the ability to exert significant influence on NGHC's operations. On June 9, 2017 , the Company announced that it entered into agreements to sell 10,586,000 common shares of NGHC at a price of $20.00 per share (representing a discount of 8.3% to NGHC's common stock closing market price on the Nasdaq Stock Exchange on June 8, 2017 ). The sale was completed through separate, privately negotiated purchase agreements with unaffiliated third parties and resulted in a $68,425 realized gain, which is reflected in the Equity in earnings of unconsolidated subsidiaries - related parties caption on the consolidated statements of operations. As a result of the transaction, the Company's ownership interest in NGHC decreased from approximately 11.5% to approximately 1.6% , which remained unchanged at December 31, 2017 . In accordance with ASC 323-10-15, Investments-Equity Method and Joint Ventures , the Company accounted for its investment in NGHC under the equity method through June 9, 2017 as it had the ability to exert significant influence on NGHC's operations. As a result of the aforementioned sale of NGHC common shares, the Company determined the fair value of its 1,709,430 remaining shares of NGHC common stock was not material to the Company's total assets or equity securities, available-for-sale, nor was the on-going income derived from the equity method accounting material to the Company's consolidated results of operations. Consequently, the Company ceased to account for its investment in NGHC under the equity method; rather, the Company classified the investment as a component of equity securities, available-for-sale on its consolidated balance sheets. In total, the Company recorded $5,063 , $15,626 , and $25,385 of income during the years ended December 31, 2017, 2016 and 2015 , respectively, related to its investment in NGHC under the equity method of accounting. Sale of NPS and Termination of Master Service Agreement On September 13, 2017 , AmTrust North America, Inc. (“ANA”), one of the Company's wholly-owned subsidiaries, entered into an Asset Purchase and License Agreement (the “Agreement”) with NGHC, pursuant to which ANA sold to NGHC the personal lines policy management system that ANA had developed for NGHC (the “System”), the related intellectual property, as well as a non-exclusive perpetual license to certain software programs NGHC may use in connection with the System. NGHC will pay ANA consideration of $200,000 , which is payable in three equal installments, with the first payment made upon the execution of the Agreement, the second payment payable upon the six-month anniversary of the Agreement (which was paid in the first quarter of 2018), and the third payment payable upon the completion of the full separation and transfer of the System to NGHC’s operating environment in accordance with the terms of the Agreement or eighteen months, whichever is later. The consideration also compensated ANA for System licensing fees of $9,267 through the date of sale. In addition, NGHC will be required to pay ANA costs for the implementation of the System in NGHC’s environment (up to $5,000 ) and certain other production and development support costs consistent with past practice. NGHC offered employment to over 100 ANA employees who support the System. During the period of September 13, 2017 through December 31, 2017 , NGHC was required to pay ANA costs for the following items: implementation of the System in NGHC's environment, ongoing production support of NGHC's environment, transition costs for the employees to whom NGHC offered employment to support the System and hardware purchased to facilitate the implementation of the System. The Company has a perpetual license to use the System for its own internal purposes. The Company may not sell or sublicense the System to a third party and, for a period of three years, the Company may not build a personal lines policy system for any third party. NGHC has a perpetual license to use certain Company software applications in connection with the System, while the Company retains all ownership rights to these software applications. Except in certain limited circumstances, NGHC may not sell or sublicense the Company software to a third party. The Agreement terminated the Master Services Agreement, dated February 22, 2012, between ANA and a subsidiary of NGHC (the “MSA”) pursuant to which ANA provided (i) information technology services in connection with the development and licensing of the System at a cost of 1.25% of the gross written premium of NGHC and its affiliates written on the System plus the Company’s costs for development of the System at a price of cost plus 20% , plus costs for the support services of the System at a price of cost only; (ii) printing and mailing services at a per piece cost for policy and policy related materials, such as invoices, quotes, notices and endorsements, associated with the policies the Company processed for NGHC and its affiliates on the System; and (iii) lockbox services for policies processed on the System, and scanning of correspondence and supplemental materials. Under the MSA, NGHC was obligated to pay the licensing fee for use of the System until 2023 and actual cost for the other ancillary services. However, under the Agreement, as of July 1, 2017, ANA no longer charges NGHC for the 1.25% licensing fee or the cost plus 20% development fee for the System, but for a limited period of time until the parties agree upon a transition date, ANA will continue to provide NGHC and its affiliates printing, mailing and lockbox services and hosting of certain infrastructure, under the same terms as these services were provided under the MSA. As a result of the sale, the Company recognized a gain on sale of approximately $186,755 for the year ended December 31, 2017 . The Company recorded a financing receivable of $130,614 from NGHC for the remaining payments, which is shown in other assets on the consolidated balance sheets as of December 31, 2017 . The Company charges NGHC for these services based on actual volume and actual cost. The Company recorded approximately $44,611 , $46,113 and $35,896 of fee income for the years ended December 31, 2017, 2016 and 2015 , respectively, related to this agreement. Asset Management Agreement A subsidiary of the Company manages the assets of certain of NGHC's subsidiaries, including the assets of reciprocal insurers managed by subsidiaries of NGHC, for an annual rate of 0.20% of the average aggregate value of the assets under management for the preceding quarter if the average aggregate value for the preceding quarter is $1,000,000 or less, and an annual rate of 0.15% of the average aggregate value of the assets under management for the preceding quarter if the average aggregate value for the preceding quarter is more than $1,000,000 . In addition, NGHC's subsidiaries reimburse the Company for certain expenses directly related to managing the portfolio. The Company managed approximately $3,276,192 of assets as of December 31, 2017 related to this agreement. As a result of this agreement, the Company recorded approximately $10,673 , $3,613 and $2,676 of asset management fees for the years ended December 31, 2017, 2016 and 2015 , respectively. The asset management fees were recorded as a component of service and fee income. 800 Superior, LLC The Company and NGHC each have a fifty percent ownership interest in 800 Superior, LLC ("800 Superior"), which owns an office building in Cleveland, Ohio. The cost of the building was approximately $7,500 . The Company has been appointed the managing member of 800 Superior. Additionally, in conjunction with the Company’s approximate 2% ownership percentage of NGHC, the Company ultimately receives 51% of the profits and losses of 800 Superior. As such, in accordance with ASC 810-10, Consolidation, the Company has been deemed the primary beneficiary and, therefore, consolidates this entity. NGHC has an office lease agreement with 800 Superior. The lease agreement is through 2027. NGHC paid 800 Superior $2,811 , $2,733 , and $2,593 of rent for the years ended December 31, 2017, 2016 and 2015 , respectively. As discussed in Note 22. "New Market Tax Credit," 800 Superior, the Company and NGHC participated in a financing transaction related to capital improvements on the office building. As part of that transaction, NGHC and the Company entered into an agreement related to the payment and performance guaranties provided by the Company to the various parties to the financing transaction whereby NGHC has agreed to contribute 50% toward any payments the Company is required to make pursuant to the guaranties. 4455 LBJ Freeway, LLC The Company and NGHC each have a fifty percent ownership interest in 4455 LBJ Freeway, LLC ("4455 LBJ Freeway"), which owns an office building in Dallas, Texas. The cost of the building was approximately $21,050 . The Company has been appointed the managing member of 4455 LBJ Freeway. Additionally, in conjunction with the Company’s approximate 2% ownership percentage of NGHC, the Company ultimately receives 51% of the profits and losses of 4455 LBJ Freeway. As such, in accordance with ASC 810-10, Consolidation, the Company consolidates this entity. NGHC's portion of the net assets and earnings are recorded within non-controlling interest in the consolidated financial statements. The Company recorded approximately $2,136 , $1,385 and $583 of service and fee income related to rent for the year ended December 31, 2017, 2016 and 2015 , respectively. In addition, NGHC has an office lease agreement with 4455 LBJ Freeway. The lease agreement is through February 2028. Lastly, 4455 LBJ Freeway entered into a ten-year loan agreement secured by the office building owned by 4455 LBJ Freeway. As part of that transaction, the Company and NGHC provided a joint and several guaranty to the lender. As a result, the Company and NGHC entered into an agreement to contribute 50% toward any payments the other party would be required to make pursuant to this guaranty. Significant Transactions with ACP Re, Ltd. ACP Re, Ltd. (“ACP Re”) is a privately-held Bermuda reinsurance holding company owned by the Trust. The Company, as Administrative Agent, AII and NG Re Ltd. (both “Lenders”) entered into a credit agreement with ACP Re in September 2014 pursuant to which the Lenders made a $250,000 loan to ACP Re. On September 20, 2016 , the Company, the Lenders, ACP Re Holdings, LLC, a Delaware LLC owned 99.9% by the Trust (the “Borrower”), and the Trust entered into an Amended and Restated Credit Agreement, replacing the September 2014 agreement with ACP Re. The Amended and Restated Credit Agreement has a maturity date of September 20, 2036 , but commencing on September 20, 2026, and for each year thereafter, 2% of the then outstanding principal balance of the loan (inclusive of any amounts previously paid in kind) is due and payable. Interest on the outstanding principal balance of $250,000 is a fixed annual rate of 3.70% (payable in cash, semi-annually, in arrears, on the last day of January and July), provided that up to 1.20% thereof may be paid in kind. The Borrower has the right to prepay the amounts borrowed, in whole or in part. At the Lenders’ discretion, the Borrower may repay the loan using cash or tradeable stock of an equivalent market value of any publicly traded company on the NYSE, Nasdaq or London stock exchange. The Company earns fees for its service as Administrative Agent, plus reimbursement of any costs, expenses and certain other charges. The Amended and Restated Credit Agreement contains a covenant requiring the Trust to cause the Borrower to maintain assets having a value greater than 115% of the value of the then outstanding loan balance, and if there is a shortfall, the Trust will make a contribution to the Borrower of assets having a market value of at least the shortfall (the “Maintenance Covenant”). The amounts borrowed are secured by equity interests, cash and cash equivalents, other investments held by the Borrower, and proceeds of the foregoing in an amount equal to the requirements of the Maintenance Covenant. The Amended and Restated Credit Agreement provides for customary events of default, with grace periods where appropriate, including failure to pay principal when due, failure to pay interest or fees within three business days after becoming due, breach of the Maintenance Covenant, breaches of representations and warranties, default under certain other indebtedness, certain insolvency, receivership or insurance regulatory events affecting the Borrower, the occurrence of certain material judgments, certain amounts of reportable ERISA or foreign pension plan noncompliance events, a change of control of greater than 50% of the Trust, or any security interest created ceases to be in full force and effect. Upon the occurrence and during the continuation of an event of default, the Company, as Administrative Agent, upon the request of any Lender, could declare the Borrower's obligations immediately due and payable and/or exercise any and all remedies and other rights under the Amended and Restated Credit Agreement. As of December 31, 2017 and 2016, the Company recorded $128,508 and $126,298 , respectively, of loan and related interest receivable as a component of other assets on its consolidated balance sheet. The Company recorded interest income of $4,654 , $7,593 , and $8,701 for the years ended December 31, 2017, 2016 and 2015 , respectively. Other Related Party Transactions $300,000 Private Placement In 2017, the Company issued 24,096 shares of common stock at a price of $12.45 per share (the closing market price of the Company’s common stock on May 25, 2017 ), resulting in gross proceeds to the Company of $300,000 through a private placement ("Private Placement"). The Company contributed the proceeds from the Private Placement to the Company's insurance subsidiaries to support their financial strength, continued organic growth, and writing of business. Certain members of the families of each of George Karfunkel, a director of the company, Leah Karfunkel and Barry Zyskind were the sole purchasers in the Private Placement. The purchasers received unregistered common shares in AmTrust, as well as certain rights to register the shares at a future date. Additionally, the purchasers agreed not to transfer the common stock, subject to certain limited exceptions for bona fide estate planning purposes, for a period of one-year from the date of purchase and not to exercise their right to vote their shares of common stock until after the conclusion of the Company's 2018 annual meeting of shareholders. Lease Agreements The Company leases office space at 59 Maiden Lane in New York, New York from 59 Maiden Lane Associates, LLC, an entity that is wholly-owned by Leah Karfunkel and George Karfunkel. The lease term is through May 2023. The Company paid approximately $1,863 , $1,962 and $1,894 for the years ended December 31, 2017, 2016 and 2015 , respectively, for this leased office space. The Company leased office space in Chicago, Illinois from 135 LaSalle Property, LLC, an entity that is wholly-owned by entities controlled by Leah Karfunkel and George Karfunkel. The lease terminated on May 31, 2016. The Company paid approximately $197 and $597 for the years ended December 31, 2016 and 2015, respectively, related to this leased office space. The Company now leases office space in Chicago, Illinois from IC 233 Building Company LLC, a wholly-owned subsidiary of Illinois Center Building Company L.P. ("Illinois Center"), discussed below. The lease term is ten years through the end of May 2026. The Company's rent expense was $1,357 and $656 during the years ended December 31, 2017 and 2016, respectively, for this leased office space. Equity Investments in Limited Partnerships In 2015, the Company invested approximately $9,700 in North Dearborn Building Company, L.P. (“North Dearborn”), a limited partnership that owns an office building in Chicago, Illinois. NGHC is also a limited partner in North Dearborn, and the general partner is NA Advisors GP LLC (“NA Advisors”), an entity controlled by Leah Karfunkel and managed by an unrelated third party. The Company and NGHC each received a 45% limited partnership interest in North Dearborn for their respective $9,700 investments, while NA Advisors invested approximately $2,200 and holds a 10% general partnership interest and a 10% profit interest, which NA Advisors pays to the unrelated third party manager. From time to time, the Company, NGHC and NA Advisors will make capital contributions to, or receive distributions from, North Dearborn, in all instances in accordance with their respective ownership percentages. North Dearborn appointed NA Advisors as the general manager to oversee the day-to-day operations of the office building and pays NA Advisors an annual fee for these services. This investment is included within other investments and is accounted for using the equity method of accounting on a three-month lag basis. The Company recorded $(4,735) , $842 , and $755 of (loss) income from this investment during the years ended December 31, 2017, 2016 and 2015 , respectively. In 2015, certain of the Company's subsidiaries invested approximately $53,715 in Illinois Center, a limited partnership that owns an office building complex in Chicago, Illinois. NGHC and ACP Re are also limited partners in Illinois Center, and the general partner is NA Advisors. The Company and NGHC each have a 37.5% limited partnership interest in Illinois Center, while ACP Re has a 15% limited partnership interest. NA Advisors holds a 10% general partnership interest and a 10% profit interest, which NA Advisors pays to the unrelated third party manager. From time to time, the Company, NGHC, ACP Re and NA Advisors will make capital contributions to, or receive distributions from, Illinois Center, in all instances in accordance with their respective ownership percentages. Illinois Center appointed NA Advisors as the general manager to oversee the day-to-day operations of the office building and pays NA Advisors an annual fee for these services. This investment is included within other investments and is accounted for using the equity method of accounting on a three-month lag basis. The Company recorded $(16,617) , $2,942 , and $1,292 of (loss) income from this investment during the years ended December 31, 2017, 2016 and 2015 , respectively. These limited partnerships are considered variable interest entities ("VIEs"). Based on current accounting guidance, the Company is required to consolidate any VIEs in which it is deemed to be the primary beneficiary through having: (i) power over the significant activities of the entity, and (ii) having an obligation to absorb losses or the right to receive benefits from the VIE that are potentially significant to the VIE. The Company performed a primary beneficiary analysis on the aforementioned limited partnerships and determined the Company was not the primary beneficiary since it does not have power over the significant activities of the entity. These limited partnerships are recorded as a component of other investments on the consolidated balance sheets. The carrying value of these limited partnerships, in aggregate, was $56,601 and $72,328 as of December 31, 2017 and 2016 , respectively. The maximum exposure to loss, which is the estimated loss that would be incurred under severe, hypothetical circumstances, for which the possibility of occurrence is remote, such as where the value of the Company's interests declines to zero, without any consideration of recovery or offset from any economic hedges, was $56,601 and $72,328 as of December 31, 2017 and 2016 , respectively. The maximum exposure to loss is a required disclosure under U.S. GAAP and is not an indication of expected loss. Merger Agreement See Note 28. "Subsequent Events" for information on a related party transaction entered into by the Company and a Karfunkel-Zyskind Family affiliated entity on March 1, 2018 . |
Acquisition Costs and Other Und
Acquisition Costs and Other Underwriting Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Acquisition Costs and Other Underwriting Expenses | Acquisition Costs and Other Underwriting Expenses The following table summarizes the components of acquisition costs and other underwriting expenses for the years ended December 31, 2017, 2016 and 2015 . Year Ended December 31, 2017 2016 2015 Policy acquisition expenses $ 1,006,468 $ 761,814 $ 662,085 Other insurance general and administrative expense 616,039 468,354 331,486 Total acquisition costs and other underwriting expenses $ 1,622,507 $ 1,230,168 $ 993,571 |
Share Based Compensation
Share Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Share Based Compensation | Share-Based Compensation The Company's 2010 Omnibus Incentive Plan (the “Plan”) permits the Company to grant to its officers, employees and non-employee directors incentive compensation directly linked to the price of the Company’s common stock. The Company is authorized to issue 14,630,136 shares of Company stock for awards of options to purchase shares of the Company’s common stock ("Stock Options"), restricted stock, restricted stock units (“RSU”), performance share units ("PSU") or appreciation rights. Shares used may be either newly issued shares or treasury shares or both. The aggregate number of shares of common stock for which awards may be issued is subject to the authority of the Company’s Board of Directors who may adjust the amount in the event of a consolidation, reorganization, stock dividend, stock split, recapitalization or similar transaction affecting the Company’s common stock. As of December 31, 2017 , approximately 3,700,000 shares of Company common stock remained available for grants under the Plan. The Company recognizes compensation expense for its share-based payments based on the fair value of the awards. Compensation expense for all share-based payments was $26,583 , $23,286 and $22,763 for the years ended December 31, 2017, 2016 and 2015 , respectively. The Company has unrecognized compensation cost related to unvested stock options, non-vested PSU and non-vested RSU awards of $58,695 , $44,975 and $39,111 as of December 31, 2017, 2016 and 2015 , respectively. Stock Options The Company may grant Stock Options at prices equal to the closing stock price of the Company’s stock on the dates the Stock Options are granted. The Stock Options have a term of ten years from the date of grant and vest primarily in equal annual installments over the four-year period following the date of grant for employee options. The Company uses the simplified method in determining the expected life. Employees have three months after the employment relationship ends to exercise all vested Stock Options. The fair value of each option grant is separately estimated for each vesting date. The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the award and each vesting date. The Company has estimated the fair value of all Stock Option awards as of the date of the grant by applying the Black-Scholes-Merton multiple-option pricing valuation model. The application of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense. The following schedule shows all Stock Options granted, exercised, and forfeited under the Plan for the years ended December 31, 2017, 2016 and 2015 : Year Ended December 31, 2017 2016 2015 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding at beginning of year 2,305,351 $ 7.54 2,783,880 $ 6.99 3,868,740 $ 5.80 Granted — — 10,000 25.91 100,000 28.04 Exercised (881,097 ) 5.67 (474,657 ) 4.17 (1,109,712 ) 4.59 Forfeited — — (13,872 ) 24.69 (75,148 ) 9.17 Outstanding at end of year 1,424,254 $ 8.71 2,305,351 $ 7.54 2,783,880 $ 6.99 The Company did not grant any Stock Options during the year ended December 31, 2017 . The weighted average grant date fair value of Stock Options granted was $6.03 and $11.31 during the years ended December 31, 2016 and 2015 , respectively. As of December 31, 2017 and 2016 , outstanding Stock Options had an approximate weighted average remaining life of 2.6 and 2.5 years, respectively. As of December 31, 2017 and 2016 , there were approximately 1,400,000 Stock Options and 2,200,000 Stock Options, respectively, with a weighted average exercise price of $8.13 and $6.83 , respectively, which were exercisable. The per share fair value of options was estimated at the date of grant based on the following weighted average assumptions as of December 31, 2016 and 2015 : December 31, 2016 2015 Volatility 30.04 % 40.81 % Risk-free interest rate 1.94 % 1.97 % Weighted average expected lives in years 6.00 6.25 Dividend rate 2.62 % 1.84 % Forfeiture rate 0.50 % 0.50 % Expected Price Volatility - this is a measure of the amount by which a price has fluctuated or is expected to fluctuate. Risk-Free Interest Rate - this is the U.S. Treasury rate for the week of the grant having a term equal to the expected life of the option. An increase in the risk-free interest rate will increase compensation expense. Expected Lives - this is the period of time over which the options granted are expected to remain outstanding giving consideration to vesting schedules, historical exercise and forfeiture patterns. The Company uses the simplified method outlined in SEC Staff Accounting Bulletin No. 107 to estimate expected lives for options granted during the periods presented. Forfeiture Rate - this is the estimated percentage of options granted that are expected to be forfeited or canceled before becoming fully vested. An increase in the forfeiture rate will decrease compensation expense. Dividend Yield - this is calculated by dividing the expected annual dividend by the share price of the Company at the valuation date. An increase in the dividend yield will decrease compensation expense. The intrinsic value of Stock Options exercised during the year ended December 31, 2017, 2016, and 2015 was $12,261 , $10,128 and $26,444 , respectively. The intrinsic value of Stock Options that were outstanding as of December 31, 2017, 2016 and 2015 was $4,706 , $45,812 and $66,300 , respectively. The intrinsic value of Stock Options that were exercisable as of December 31, 2017, 2016 and 2015 was $4,706 , $45,506 and $64,705 , respectively. Cash received from Stock Options exercised was $4,750 , $1,909 and $4,907 during the years ended December 31, 2017, 2016, and 2015 , respectively. The excess (tax deficiency) / tax benefit from award exercises was approximately $(448) , $5,930 and $10,211 for the years ended December 31, 2017, 2016 and 2015 , respectively. During the year ended December 31, 2017 , such deficiency was recorded as an increase of income tax payable and federal income tax expense. During the years ended December 31, 2016 and 2015 , such benefits were recorded as a reduction of income tax payable and an increase in additional paid-in capital. Restricted stock, RSU and PSU The Company grants restricted shares, RSUs and PSUs with a grant date value equal to the closing stock price of the Company's stock on the dates the shares or units are granted. The restricted shares and RSUs vest over a period of one to four years, while PSUs vest based on the terms of the awards. As of December 31, 2017 and 2016 , all restricted stock, RSUs and PSUs outstanding had an approximate weighted average remaining life of 1.6 and 1.4 years, respectively. A summary of the Company’s restricted stock and RSU activity for the years ended December 31, 2017, 2016 and 2015 is shown below: Year Ended December 31, 2017 2016 2015 Shares or Units Weighted Average Grant Date Fair Value Shares or Units Weighted Average Grant Date Fair Value Shares or Units Weighted Average Grant Date Fair Value Non-vested at beginning of year 1,965,011 $ 24.38 1,853,516 $ 20.54 2,611,022 $ 16.70 Granted 2,792,855 12.75 994,289 25.91 476,942 29.27 Vested (741,576 ) 22.76 (832,524 ) 17.65 (1,200,800 ) 15.66 Forfeited (114,012 ) 19.60 (50,270 ) 24.19 (33,648 ) 20.95 Non-vested at end of year 3,902,278 $ 16.51 1,965,011 $ 24.38 1,853,516 $ 20.54 A summary of the Company's PSU activity for the years ended December 31, 2017, 2016 and 2015 is shown below: Year Ended December 31, 2017 2016 2015 Shares or Units Weighted Average Grant Date Fair Value Shares or Units Weighted Average Grant Date Fair Value Shares or Units Weighted Average Grant Date Fair Value Non-vested at beginning of year 680,597 $ 25.57 752,466 $ 24.58 549,670 $ 19.42 Granted 653,125 13.17 198,881 26.16 373,628 29.93 Vested (252,221 ) 23.49 (234,358 ) 22.89 (155,842 ) 18.86 Forfeited (67,262 ) 25.16 (36,392 ) 25.64 (14,990 ) 28.13 Non-vested at end of year 1,014,239 $ 18.13 680,597 $ 25.57 752,466 $ 24.58 PSUs are conditional grants of a specified maximum number of common shares. In general, grants are earned, subject to the attainment of pre-specified performance goals at the end of the pre-determined period. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of the following for the years ended December 31, 2017, 2016 and 2015 : Year Ended December 31, 2017 2016 2015 Current expense (benefit): Federal $ (11,415 ) $ (13,084 ) $ 74,967 Foreign 37,360 46,020 20,442 Total current tax expense 25,945 32,936 95,409 Deferred expense (benefit): Federal $ (131,890 ) $ 67,154 $ (71,446 ) Foreign 6,582 (14,783 ) 14,983 Total deferred tax (benefit) expense (125,308 ) 52,371 (56,463 ) Total income tax (benefit) expense $ (99,363 ) $ 85,307 $ 38,946 The following table is a reconciliation of the Company’s statutory income tax expense to its effective tax rate for the years ended December 31, 2017, 2016 and 2015 : Year Ended December 31, 2017 2016 2015 (Loss) income before income taxes and equity in earnings of unconsolidated subsidiaries $ (507,730 ) $ 500,051 $ 471,194 Tax at federal statutory rate of 35% (177,706 ) 175,018 164,918 Tax effects resulting from: Tax reform 72,534 — — Permanent adjustments 1,218 (5,091 ) (121,923 ) Foreign rate differential (27,120 ) (56,637 ) (98,059 ) Adjustments to prior year taxes (2,723 ) (17,504 ) (68,075 ) Valuation allowance 32,954 (12,874 ) 149,842 Other, net 1,480 2,395 12,243 Total income tax (benefit) expense $ (99,363 ) $ 85,307 $ 38,946 Effective tax rate 19.6 % 17.1 % 8.3 % “Adjustments to prior year taxes” include a change in a prior year estimate for the tax provision based on what management believes the result will be versus what is recorded in the tax return. The adjustments for December 31, 2016 , primarily related to a $12,726 benefit associated with a statutory to GAAP accounting adjustment for investments and a $5,138 benefit for the Company making a full APB 23 permanent reinvestment assertion. The adjustments for December 31, 2015 , primarily related to a $73,420 benefit for provision to return adjustments, specifically from transfer pricing, and a $5,112 expense resulting from a change in the Company’s ownership percentage of an equity investment that returned the tax rate applied to this investment to the standard statutory rate from the dividend received deduction rate. The TCJA was enacted on December 22, 2017 . The TCJA reduces the U.S. federal corporate tax rate from 35% to 21% , requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, creates new taxes on certain foreign sourced earnings, and revises the tax treatment of certain items for property and casualty insurers. As of December 31, 2017 , the Company had not completed its accounting for the tax effects of enactment of the TCJA; however, as provided in SEC Staff Accounting Bulletin No. 118, in certain cases, as described below, the Company has made a reasonable estimate of the effects on its existing deferred tax balances and the one-time transition tax. For the items for which the Company was able to determine a reasonable estimate, it recognized a provisional amount of $72,534 . This amount is related to the restatement of deferred taxes from 35% to the newly enacted 2018 rate of 21% , and are included as a component of income tax benefit from continuing operations. In all cases, the Company will continue to make and refine its calculations as it completes additional analysis. In addition, the Company's estimates may also be affected as it gains a more thorough understanding of the tax law. As noted above, under the TCJA, undistributed post-1986 earnings and profits (E&P) previously deferred from U.S. income taxes are subject to a one-time transition tax. Based on an initial review, it is reasonably expected that the Company will not incur the one-time transitional tax liability. This expectation may change when the Company finalizes the calculation of post-1986 foreign E&P previously deferred from U.S. federal taxation and finalizes the amounts held in cash or other specified assets. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities as of December 31, 2017 and 2016 are shown below: December 31, 2017 2016 Deferred tax assets: Net operating loss carryforward $ 280,271 $ 224,918 Unearned premiums 86,215 150,167 Ceding commission — 146,503 Loss and LAE reserves 48,575 73,873 Other 114,851 109,408 Deferred revenue 46,455 61,780 Bad debt 28,108 25,489 Deferred compensation 2,004 6,655 Total gross deferred tax assets 606,479 798,793 Valuation allowance (195,146 ) (142,462 ) Total deferred tax assets 411,333 656,331 Deferred tax liabilities: Deferred acquisition costs (145,600 ) (384,656 ) Equity results which cannot be liquidated tax free (11,838 ) (57,614 ) Intangible assets (67,008 ) (89,133 ) Depreciation (24,224 ) (49,411 ) Other (3,118 ) (3,489 ) Equalization reserves (13,307 ) (15,890 ) Accrual market discount (4,853 ) (10,144 ) Cash surrender value on insurance (1,563 ) (2,299 ) Unrealized gain on investments (22,978 ) (27,663 ) Total deferred tax liabilities (294,489 ) (640,299 ) Deferred tax asset, net $ 116,844 $ 16,032 The Company's net deferred tax asset at December 31, 2017 , is included in other assets in the consolidated balance sheets. The likelihood of realizing deferred tax assets is reviewed periodically. Any adjustments required to the valuation allowance are made in the period during which developments requiring an adjustment become known. The Company has U.S. Net Operating Losses (“NOLs”) of $13,104 that expire beginning in 2019 through 2037 . In addition, these NOLs are subject to certain limitations under Section 382 of the Internal Revenue Code due to changes in ownership of $9,123 per year. The Company also has foreign NOLs of $991,862 , the majority of which have no expiration. The Company's management believes that as of December 31, 2017 , except for a portion of foreign and domestic NOLs, it will realize the benefits of its deferred tax assets. The Company placed a valuation allowance on a significant portion of the foreign NOLs as of December 31, 2017 . The Company has a valuation allowance of $195,146 and $142,462 , as of December 31, 2017 and December 31, 2016 . The valuation allowance increased for the year ended December 31, 2017 , as a result of establishing a valuation allowance on the Company's UK Lloyd syndicate that was acquired in November 2016 . The valuation allowance was the result of an update to the income forecast for new facts that did not exist during the measurement period that resulted in a decreased amount of future income in the UK in order to fully utilize the NOL's incurred to date. Even though the NOL's do not have an expiration date, the Company determined that a valuation allowance should be placed on the portion that is unlikely to be utilized within the next three years. The earnings of certain of the Company’s foreign subsidiaries have been indefinitely reinvested in foreign operations. Therefore, no provision has been made for any U.S. taxes or foreign withholding taxes that may be applicable upon any repatriation or disposition. The determination of any unrecognized deferred tax liability for temporary differences related to investments in certain of the Company’s foreign subsidiaries is not practicable. As of December 31, 2017 and 2016 , the financial reporting basis in excess of the tax basis for which no deferred taxes have been recognized was approximately $400,698 and $315,712 , respectively. The Company's major taxing jurisdictions include the U.S. (federal and state), the United Kingdom and Ireland. The years subject to potential audit vary depending on the tax jurisdiction. Generally, the Company’s statute of limitations is open for tax years ended December 31, 2012 and forward. The Company is currently under audit in the U.S. for tax years 2013 , 2014 and 2015 . The audit is ongoing as of December 31, 2017 and is expected to close during 2018 . Listed below are the tax years that remain subject to examination by major tax jurisdictions: Open Tax Years United States 2013-2016 United Kingdom 2016 Ireland 2012-2016 As permitted by ASC 740-10 Income Taxes , the Company recognizes interest and penalties, if any, related to unrecognized tax benefits in its income tax provision. The Company does not have any unrecognized tax benefits and, therefore, has not recorded any unrecognized tax benefits, or any related interest and penalties, as of December 31, 2017 and 2016 . No interest or penalties have been recorded by the Company for the years ended December 31, 2017, 2016, and 2015 . The Company does not anticipate any significant changes to its total unrecognized tax benefits in the next 12 months. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors multiple defined contribution plans, which are available to a majority of its employees. Contributions to these plans were based on a percentage of the employee contributions or earnings. The cost of the Company's domestic plan was approximately $10,736 , $8,363 , and $6,693 for the years ended December 31, 2017, 2016 and 2015 , respectively. The cost of the Company's European plans was approximately $4,986 , $4,193 , and $3,815 for the years ended December 31, 2017, 2016 and 2015 , respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share During the year ended December 31, 2015 , the Company's unvested restricted shares contained rights to receive nonforfeitable dividends and were, therefore, considered participating securities. As a result, the Company computed earnings per share using the two-class method during the year ended December 31, 2015 . There were no outstanding unvested restricted shares as of December 31, 2017 and 2016 . The following table is a summary of the elements used in calculating basic and diluted earnings per share for the years ended December 31, 2017, 2016 and 2015 : Year Ended December 31, 2017 2016 2015 Numerator: Net (loss) income attributable to AmTrust common stockholders $ (415,173 ) $ 363,139 $ 419,115 Less: Net income attributable to participating securities and redeemable non-controlling interest — — 314 Net (loss) income attributable to AmTrust common stockholders $ (415,173 ) $ 363,139 $ 418,801 Denominator: Weighted average common shares outstanding – basic 185,961 172,554 165,042 Plus: Dilutive effect of stock options, convertible debt, other (1) — 1,991 3,318 Weighted average common shares outstanding – dilutive 185,961 174,545 168,360 Net (loss) income per AmTrust common shares – basic $ (2.23 ) $ 2.10 $ 2.54 Net (loss) income per AmTrust common shares - diluted $ (2.23 ) $ 2.08 $ 2.49 (1) In accordance with ASC 260, Earnings Per Share , no potential common shares are included in the computation of diluted per share amounts as the effect would be antidilutive. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock During 2017, the Company issued 24,096,384 shares in a private placement resulting in proceeds to the Company of $300,000 . See Note 15. "Related Party Transactions" for additional information. The Company executed a two -for-one stock split on February 2, 2016 . During 2015, the Company issued an aggregate of 8,450,000 of pre-split adjusted shares of common stock in two separate underwritten public offerings. Total proceeds received from these offerings were $487,087 . In addition, the Company incurred approximately $413 in fees and expenses, which were recorded as a reduction in additional paid-in capital. On December 15, 2015, the Company's stockholders approved an amendment to the Company's Amended and Restated Certificate of Incorporation to increase the Company's authorized number of shares of common stock from 150,000,000 shares (on a pre-split basis) to 500,000,000 shares. Preferred Stock In September 2016, the Company completed a public offering of 11,500,000 of its depositary shares, each representing a 1/40th interest in a share of its 6.95% Non-Cumulative Preferred Stock, Series F, $0.01 par value per share (the "Series F Preferred Stock"), with a liquidation preference of $1,000 per share (equivalent to $25 per depositary share). Each depositary share entitles the holder to a proportional fractional interest in all rights and preferences of the Series F Preferred Stock represented thereby (including any dividend, liquidation, redemption and voting rights). Dividends on the Series F Preferred Stock represented by the depositary shares will be payable on the liquidation preference amount, on a non-cumulative basis, when, as and if declared by the Company’s board of directors, at a rate of 6.95% per annum, quarterly in arrears, on March 15, June 15, September 15, and December 15 of each year, beginning on December 15, 2016 , from and including the date of original issuance. The Series F Preferred Stock represented by the depositary shares is not redeemable prior to September 27, 2021. After that date, the Company may redeem at its option, in whole or in part, the Series F Preferred Stock represented by the depositary shares at a redemption price of $1,000 per share (equivalent to $25 per depositary share) plus any declared and unpaid dividends for prior dividend periods and accrued but unpaid dividends (whether or not declared) for the then current dividend period. Net proceeds from this offering were $278,194 . In addition, the Company incurred $9,306 in underwriting discount and commissions and expenses, which were recognized as a reduction to additional paid-in capital. In March 2016, the Company completed a public offering of 5,750,000 of its depositary shares, each representing a 1/40th interest in a share of its 7.75% Non-Cumulative Preferred Stock, Series E, $0.01 par value per share (the "Series E Preferred Stock"), with a liquidation preference of $1,000 per share (equivalent to $25 per depositary share). Each depositary share entitles the holder to a proportional fractional interest in all rights and preferences of the Series E Preferred Stock represented thereby (including any dividend, liquidation, redemption and voting rights). Dividends on the Series E Preferred Stock represented by the depositary shares will be payable on the liquidation preference amount, on a non-cumulative basis, when, as and if declared by the Company’s board of directors, at a rate of 7.75% per annum, quarterly in arrears, on March 15, June 15, September 15, and December 15 of each year, beginning on June 15, 2016 , from and including the date of original issuance. The Series E Preferred Stock represented by the depositary shares is not redeemable prior to March 15, 2021. After that date, the Company may redeem at its option, in whole or in part, the Series E Preferred Stock represented by the depositary shares at a redemption price of $1,000 per share (equivalent to $25 per depositary share) plus any declared and unpaid dividends for prior dividend periods and accrued but unpaid dividends (whether or not declared) for the then current dividend period. Net proceeds from this offering were $139,070 . In addition, the Company incurred $4,680 in underwriting discount and commissions and expenses, which were recognized as a reduction to additional paid-in capital. On March 19, 2015 , the Company completed a public offering of 7,300,000 of its depositary shares including an over-allotment option, each representing a 1/40th interest in a share of its 7.50% Non-Cumulative Preferred Stock, Series D, $0.01 par value per share (the "Series D Preferred Stock"), with a liquidation preference of $1,000 per share (equivalent to $25 per depositary share). Each depositary share entitles the holder to a proportional fractional interest in all rights and preferences of the Series D Preferred Stock represented thereby (including any dividend, liquidation, redemption and voting rights). Dividends on the Series D Preferred Stock represented by the depositary shares will be payable on the liquidation preference amount, on a non-cumulative basis, when, as and if declared by the Company’s board of directors, at a rate of 7.50% per annum, quarterly in arrears, on March 15 , June 15 , September 15 , and December 15 of each year, beginning on June 15, 2015 , from and including the date of original issuance. The Series D Preferred Stock represented by the depositary shares is not redeemable prior to March 19, 2020. After that date, the Company may redeem at its option, in whole or in part, the Series D Preferred Stock represented by the depositary shares at a redemption price of $1,000 per share (equivalent to $25 per depositary share) plus any declared and unpaid dividends for prior dividend periods and accrued but unpaid dividends (whether or not declared) for the then current dividend period. Net proceeds from this offering, including the over-allotment, were $176,511 . In addition, the Company incurred $5,989 in underwriting discount and commissions and expenses, which were recognized as a reduction to additional paid-in capital. Dividends on the Preferred Stock are not cumulative. Accordingly, in the event dividends are not declared on the Preferred Stock for payment on any dividend payment date, then those dividends will not accumulate and will not be payable. If the Company has not declared a dividend before the dividend payment date for any dividend period, the Company will have no obligation to pay dividends for that dividend period, whether or not dividends on the Preferred Stock are declared for any future dividend payment. During any dividend period, so long as any shares of Preferred Stock remain outstanding, unless the full dividends for the latest completed dividend period on all outstanding shares of Preferred Stock have been declared and paid, no dividend shall be paid or declared on the shares of common stock. The holders of the Preferred Stock have no voting rights other than the right to elect up to two directors if dividends on the Preferred Stock are not declared and paid for six or more dividend periods. Holders of Preferred Stock have no right to convert the Preferred Stock into, or exchange Preferred Stock for, any other securities or property of the Company. Upon any dissolution, liquidation or “winding up” of the Company, holders of Preferred Stock will be entitled to receive out of the Company’s assets, whether from capital, surplus or earnings, and before any distribution of any assets is made on the Company’s common stock, the liquidation preference of $25 per share, plus unpaid dividends, if any, to the date fixed for distribution. Holders of Preferred Stock will be entitled to no further participation in any distribution made in conjunction with any dissolution, liquidation or “winding up.” Accumulated Other Comprehensive Income (Loss) The following table summarizes accumulated other comprehensive income (loss) for the years ended December 31, 2017, 2016 and 2015 : Foreign Currency Items Unrealized Gains (Losses) on Investments Interest Rate Swap Hedge Net Benefit Plan Assets and Obligations Recognized in Stockholders' Equity Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2014 $ (8,822 ) $ 73,513 $ (1,321 ) $ (2,793 ) $ 60,577 Other comprehensive income (loss) before reclassification (89,252 ) (171,109 ) 955 4,132 (255,274 ) Amounts reclassed from accumulated other comprehensive income (loss) — 4,918 — — 4,918 Income tax benefit (expense) — 58,167 (334 ) (1,446 ) 56,387 Net current-period other comprehensive income (loss) (89,252 ) (108,024 ) 621 2,686 (193,969 ) Balance, December 31, 2015 (98,074 ) (34,511 ) (700 ) (107 ) (133,392 ) Other comprehensive income (loss) before reclassification (90,129 ) 177,395 835 (3,064 ) 85,037 Amounts reclassed from accumulated other comprehensive income — (30,715 ) — — (30,715 ) Income tax benefit (expense) — (46,339 ) (307 ) (6 ) (46,652 ) Net current-period other comprehensive income (loss) (90,129 ) 100,341 528 (3,070 ) 7,670 Balance, December 31, 2016 (188,203 ) 65,830 (172 ) (3,177 ) (125,722 ) Other comprehensive income (loss) before reclassification 143,386 70,796 202 1,570 215,954 Amounts reclassed from accumulated other comprehensive income — (62,841 ) — — (62,841 ) Income tax benefit (expense) — (11,173 ) (62 ) (640 ) (11,875 ) Net current-period other comprehensive income (loss) 143,386 (3,218 ) 140 930 141,238 Balance, December 31, 2017 $ (44,817 ) $ 62,612 $ (32 ) $ (2,247 ) $ 15,516 During the years ended December 31, 2017, 2016 and 2015 , amounts reclassed from accumulated other comprehensive income (loss) into net income were included in net realized gain on investment. |
New Market Tax Credit
New Market Tax Credit | 12 Months Ended |
Dec. 31, 2017 | |
New Market Tax Credit [Abstract] | |
New Market Tax Credit | New Market Tax Credit In 2012 , the Company's subsidiary, 800 Superior, LLC (an entity owned equally by the Company and NGHC), received $19,400 in net proceeds from a financing transaction the Company and NGHC entered into with Key Community Development Corporation (“KCDC”) related to a capital improvement project for an office building in Cleveland, Ohio owned by 800 Superior, LLC. The Company, NGHC and KCDC collectively made capital contributions (net of allocation fees) and loans to 800 Superior NMTC Investment Fund II and 800 Superior NMTC Investment Fund I LLC (collectively, the “Investment Funds”) under a qualified New Markets Tax Credit (“NMTC”) program. The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000 (the “Act”) and is intended to induce capital investment in qualified lower income communities. The Act permits taxpayers to claim credits against their federal income taxes (but not base erosion and anti-abuse taxes) for up to 39% of qualified investments in the equity of community development entities (“CDEs”). CDEs are privately managed investment institutions that are certified to make qualified low-income community investments (“QLICIs”). In addition to the capital contributions and loans from the Company, NGHC and KCDC, as part of the transaction, the Investment Funds received, directly and indirectly, proceeds of approximately $8,000 through two loans originating from state and local governments of Ohio. These loans are each for a period of 15 years and have an average interest rate of 2.0% per annum. The Investment Funds then contributed the loan proceeds and capital contributions of $19,400 to two CDEs, which, in turn, loaned the funds on similar terms to 800 Superior, LLC. The proceeds of the loans from the CDEs (including loans representing the capital contribution made by KCDC, net of allocation fees) will be used to fund the capital improvement project. As collateral for these loans, the Company has granted a security interest in the assets acquired with the loan proceeds. The Company and NGHC are each entitled to receive an equal portion of 49% of the benefits derived from the NMTCs generated by 800 Superior Investment Fund II LLC, while KCDC is entitled to the remaining 51% . The NMTC is subject to 100% recapture for a period of seven years as provided in the Internal Revenue Code. During this seven years ' period, the entities involved are required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangement. Non-compliance with applicable requirements could result in the projected tax benefits not being realized and, therefore, could require the Company to indemnify KCDC for any loss or recapture of NMTCs related to the financing until such time as the obligation to deliver tax benefits is relieved. The Company does not anticipate any credit recaptures will be required in connection with this arrangement. In addition, this transaction includes a put/call provision whereby the Company may be obligated or entitled to repurchase KCDC's interest in the Investment Funds in September 2019 at the end of the recapture period. The Company believes that KCDC will exercise its put option and, therefore, attributed an insignificant value to the put/call. The Company has determined that the Investment Funds are variable interest entities (“VIEs”). The ongoing activities of the Investment Funds - collecting and remitting interest and fees and NMTC compliance - were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the Investment Funds. When determining whether to consolidate the Investment Funds, Company management considered the contractual arrangements that obligate it to deliver tax benefits and provide various other guarantees to the structure, KCDC's lack of a material interest in the underlying economics of the project, and the fact that the Company is obligated to absorb losses of the Investment Funds. Also, the Company has an approximate 2% ownership interest in NGHC. The Company concluded that it was the primary beneficiary and consolidated the Investment Funds. KCDC's contribution, net of syndication fees, is included as an accrued liability in the accompanying consolidated balance sheets. Direct costs incurred in structuring the financing arrangement are deferred and will be recognized as expense over the term of the loans. Incremental costs to maintain the structure during the compliance period are recognized as incurred. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company’s insurance subsidiaries are named as defendants in various legal actions arising principally from claims made under insurance policies and contracts. Those actions are considered by the Company in estimating the loss and LAE reserves. The Company is also a party in various commercial and employment disputes, including claims both by and against the Company. The Company’s management believes the resolution of these actions will not have a material adverse effect on the Company’s financial position or results of operations. On April 7, 2015 , one of the Company's stockholders, Cambridge Retirement System, filed a derivative action in the Court of Chancery of the State of Delaware against the Company, as nominal defendant, and against the Company's board of directors, Leah Karfunkel, and ACP Re, as defendants. Cambridge amended its complaint on November 3, 2015 to add NGHC as a defendant. The stockholder purports to bring the derivative action on the Company's behalf, alleging breaches of the duties of loyalty and care on the part of the Company's directors and majority shareholders related to the Company's transactions involving Tower Group International, Ltd. Cambridge's claim against NGHC and ACP Re is for unjust enrichment. The amended complaint seeks damages, disgorgement and reform of the Company's governance practices. On April 27, 2017 , one of the Company's stockholders, David Shaev Profit Sharing Plan, filed a derivative action in the Supreme Court of the State of New York for the County of New York ( Shaev v. DeCarlo et al. ). Three derivative suits have also been filed in the U.S. District Court for the District of Delaware. On April 19, 2017 one of the Company's stockholders, Lily Ding, filed a derivative action in the District of Delaware against the Company, as nominal defendant, and against the Company's board of directors as defendants, but this stockholder subsequently voluntarily dismissed her suit ( Ding v. Zyskind et al .). On May 11, 2017 , one of the Company's stockholders, West Palm Beach Police Pension Fund, filed suit ( West Palm Beach Police Pension Fund v. Zyskind et al .), and on June 28, 2017 , two of the Company's stockholders, City of Lauderhill Police Officers Retirement Plan and Pompano Beach Police & Firefighters Retirement System, filed suit ( City of Lauderhill Police Officers Retirement Plan and Pompano Beach Police & Firefighters Retirement System et al. v. Zyskind et al .). These two Delaware derivative actions ( West Palm Beach Police Pension Fund and Lauderhill-Pompano Beach ) have been consolidated under the case name In re AmTrust Financial Services, Inc. Derivative Litigation . The stockholders purport to bring the derivative actions on the Company's behalf, and raise claims that primarily involve the Company's recent restatement of its financial statements and the identification of material weaknesses in its internal control over financial reporting. The In re AmTrust Derivative Litigation complaint alleges violations of Sections 10(b), 14(a), 20A, and 29(b) of the Exchange Act, breaches of fiduciary duties, unjust enrichment, and waste of corporate assets. The In re AmTrust Derivative Litigation complaint also seeks reform of the Company's governance practices, contribution and indemnification, and both sets of stockholders seek damages. The Company believes the allegations in these pending derivative actions to be unfounded and is vigorously pursuing its defenses. The Company and certain of its officers and directors are also defendants in three putative securities class action lawsuits filed in March and April of 2017 in the U.S. District Court for the Southern District of New York. Another putative class action, filed in February 2017 in the U.S. District Court for the Central District of California, was voluntarily dismissed ( Miller v. AmTrust, Zyskind, and Pipoly ). The three cases in the Southern District of New York have been consolidated under the case name In re AmTrust Financial Services, Inc. Securities Litigation. Plaintiffs in this proceeding filed a consolidated amended complaint on August 21, 2017 . Plaintiffs assert in the consolidated amended complaint claims under Sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated thereunder and Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, as amended. The consolidated amended complaint adds BDO USA LLP, Citigroup Global Markets Inc., Keefe, Bruyette & Woods, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, and UBS Securities LLC as defendants. Plaintiffs seek an unspecified amount in damages, attorneys’ fees, and other relief. The Company believes the allegations to be unfounded and is vigorously pursuing its defenses; however, the Company cannot reasonably estimate a potential range of loss, if any, due to the early stage of the proceedings. Additionally, in April, May, June, July and December, 2017 , and March 2018, the Company received demands for the inspection of books and records pursuant to Section 220 of the Delaware General Corporation Law, from purported stockholders Rikhard Dauber, Pompano Beach Police & Firefighters Retirement System, Nestor Shust, the City of Lauderhill Police Officers’ Retirement Plan, the West Palm Beach Police Pension Fund, the Cambridge Retirement System, the Lislois Family Trust and Arca Capital Group. Lease Commitments The Company is obligated under approximately 125 leases for office space expiring at various dates through 2027 . Future minimum lease payments as of December 31, 2017 under non-cancellable operating leases for each of the next five years are approximately as follows: 2018 $ 26,237 2019 23,110 2020 21,100 2021 18,251 2022 14,931 2023 and Thereafter 21,780 Future minimum lease payments $ 125,409 Rent expense for the years ended December 31, 2017, 2016 and 2015 was $28,200 , $28,207 and $20,336 , respectively. Employment Agreements The Company has employment agreements with approximately 69 of its key executives and employees. The agreements terminate on varying dates through 2021 , contain annual minimum levels of compensation, and contain bonuses based on the Company achieving certain financial targets. The annual future minimum compensation payments in the aggregate through 2021 are as follows: 2018 $ 21,513 2019 9,247 2020 4,500 2021 945 Future minimum compensation payments $ 36,205 Funding commitments As of December 31, 2017 , the Company had commitments of $18,157 to further fund its other investments. See Note 2. "Significant Accounting Policies" for additional information on other investments. |
Statutory Financial Data, Risk
Statutory Financial Data, Risk Based Capital and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Statutory Financial Data, Risk Based Capital and Dividend Restrictions | Statutory Financial Data, Risk Based Capital and Dividend Restrictions The Company’s insurance subsidiaries file financial statements in accordance with statutory accounting practices (“SAP”) prescribed or permitted by domestic insurance regulatory authorities. The differences between statutory financial statements and financial statements prepared in accordance with GAAP vary between jurisdictions. The principal differences relate to (1) acquisition costs incurred in connection with acquiring new business which are charged to expense under SAP but under GAAP are deferred and amortized as the related premiums are earned; (2) limitations on net deferred tax assets created by the tax effects of temporary differences; (3) unpaid losses and loss expense, and unearned premium reserves which are presented gross of reinsurance with a corresponding asset recorded; (4) fixed maturity portfolios that are carried at fair value instead of amortized cost and changes in fair value are reflected directly in unassigned surplus, net of related deferred taxes; (5) certain assets designated as “non-admitted assets” that are charged against surplus under SAP; and (6) workers’ compensation reserves for insurance companies domiciled in the state of Delaware which are discounted. The total statutory net income and statutory capital and surplus for the Company's twenty-four insurance subsidiaries domiciled in the U.S. are as follows: Year Ended December 31, 2017 2016 2015 Total statutory net income $ 61,554 $ 121,316 $ 105,500 December 31, 2017 2016 Total statutory capital and surplus $ 2,111,792 $ 2,026,019 The Commissioner of Insurance of the State of Delaware has allowed three of our insurance subsidiaries to discount non-tabular workers’ compensation loss reserves, which is a permitted practice that differs from SAP. Additionally, the New York Department of Financial Services has adopted the prescribed accounting practices of discounting workers’ compensation known case loss reserves on a non-tabular basis, which impacted one insurance subsidiary. The effect of using these permitted and prescribed practices was to increase the Company's total statutory capital and surplus by $53,400 and $44,350 as of December 31, 2017 and 2016 , respectively. Property and casualty insurance companies in the U.S. are subject to certain Risk-Based Capital (“RBC”) requirements that establish the minimum amount of statutory capital and surplus that must be maintained by each company, as specified by the National Association of Insurance Commissioners ("NAIC"). The minimal capital requirements are determined by using a formula that focuses on the material risks to which the company is exposed, and are designed to ensure that the company can fulfill obligations to shareholders. As of December 31, 2017 and 2016 , the statutory capital and surplus of each of the Company’s insurance subsidiaries domiciled in the U.S. exceeded the RBC requirements. The Company’s foreign and domestic insurance subsidiaries are also subject to statutory and regulatory restrictions applicable to insurance companies, which limit the amount of cash dividends or distributions that they may pay to approximately $823,976 and $749,280 as of December 31, 2017 and 2016 , respectively. During 2017 , 2016 and 2015 , the Company received dividends of approximately $586,000 , $18,019 and $63,649 , respectively, from its subsidiaries. In addition to the restrictions on the insurance subsidiaries, there are also restrictions in the parent company's debt instruments, which require dividends to be limited to an amount that, after giving immediate effect to such dividend payments on a pro forma basis, would allow the Company to remain in compliance with its debt covenants. Europe The Company's European entities prepare financial statements in accordance with local regulatory requirements. These statutory accounting practices differ from U.S. GAAP primarily by charging policy acquisition costs to expense as incurred and establishing future policy benefit liabilities using different actuarial assumptions, as well as valuing investments and certain assets and accounting for deferred taxes on a different basis. Effective January 1, 2016, the European Union’s executive body, the European Commission, implemented a new capital adequacy and risk management regulation called “Solvency II” that applies to our businesses across the European Union (including the United Kingdom) and impacts AEL, AMIL, MIC, our Lloyd's syndicates, AIU and our Luxembourg entities. Solvency II imposes new requirements with respect to capital structure, technical provisions, solvency calculations, governance, disclosure and risk management. All of the Company’s international insurance subsidiaries have capital levels that exceed their respective regulatory minimum requirements, and none utilized prescribed or permitted practices that vary materially from the practices prescribed by the regulatory bodies for the years ended December 31, 2017, 2016 and 2015, respectively. The declaration of dividends for the Company’s European entities is restricted to profits available for distribution as a matter of respective jurisdictional law and in certain entities requires consent of local regulators. The European dividends included in the total above represent the estimated maximum potential dividend available based on the most recent solvency returns submitted to local regulators. Any final dividends would still be subject to regulatory approval in the case of AEL and AMIL. Bermuda For AmTrust International Insurance Ltd,, the regulations require that the available statutory capital and surplus should be equal to or exceed the value of both its Minimum Margin of Solvency ("MMS") and the Enhanced Capital Requirement ("ECR"). The Capital and Solvency Return will be filed with the Bermuda Monetary Authority on April 30, 2018 and the ECR based on the Economic Balance Sheet will not be available until this filing is completed. The Capital and Surplus requirement is based on the statutory capital MMS prior to the ECR and the 25% of ECR criteria being calculated. The required MMS on this basis is $423,211 as of December 31, 2017. The ECR will be materially higher than the MMS. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company currently operates three business segments, Small Commercial Business; Specialty Risk and Extended Warranty; and Specialty Program. The “Corporate & Other” segment represents the activities of the holding company as well as a portion of service and fee revenue and corporate costs. In determining total assets (excluding cash and invested assets) by segment, the Company identifies those assets that are attributable to a particular segment such as deferred acquisition cost, reinsurance recoverable, goodwill, intangible assets and prepaid reinsurance while the remaining assets are allocated based on gross written premiums by segment. In determining cash and invested assets by segment, the Company matches certain identifiable liabilities such as unearned premiums and loss and loss adjustment expense reserves by segment. The remaining cash and invested assets are then allocated based on gross written premiums by segment. Investment income and realized gains (losses) are determined by calculating an overall annual return on cash and invested assets and applying that overall return to the cash and invested assets by segment. Ceding commission revenue is allocated to each segment based on that segment’s proportionate share of the Company’s overall acquisition costs. Interest expense is allocated based on gross written premiums by segment. Income taxes are allocated on a pro-rata basis based on the Company’s effective tax rate. Additionally, management reviews the performance of underwriting income in assessing the performance of and making decisions regarding the allocation of resources to the segments. Underwriting income excludes, primarily, service and fee revenue, investment income and other revenues, other expenses, interest expense and income taxes. Management believes that providing this information in this manner is essential to providing Company’s stockholders with an understanding of the Company’s business and operating performance. During the years ended December 31, 2017 , 2016 and 2015 , the Company did not derive over ten percent of its consolidated revenue from any one customer. The following tables summarize business segments as follows for the years ended December 31, 2017 , 2016 and 2015 : Year Ended December 31, 2017 Small Commercial Business Specialty Risk and Extended Warranty Specialty Program Corporate and Other Total Gross written premiums $ 4,342,627 $ 3,115,487 $ 976,516 $ — $ 8,434,630 Revenues: Net written premiums $ 2,305,817 $ 2,215,003 $ 631,696 $ — $ 5,152,516 Change in unearned premiums 843 (205,242 ) 107,981 — (96,418 ) Net earned premiums 2,306,660 2,009,761 739,677 — 5,056,098 Expenses: Loss and loss adjustment expenses 1,812,925 1,533,554 737,999 — 4,084,478 Acquisition costs and other underwriting expenses 719,793 662,101 240,613 — 1,622,507 Total expenses 2,532,718 2,195,655 978,612 — 5,706,985 Underwriting loss (226,058 ) (185,894 ) (238,935 ) — (650,887 ) Other income (loss): Service and fee income 127,607 372,937 5,791 105,870 612,205 Investment income and realized gain on investments 117,951 114,160 58,527 — 290,638 Other expenses (181,699 ) (130,354 ) (40,858 ) (352,911 ) (705,822 ) Interest expense (50,592 ) (36,296 ) (11,377 ) — (98,265 ) Foreign currency loss — (139,910 ) — — (139,910 ) Loss on life settlement contracts (1,258 ) (903 ) (283 ) — (2,444 ) Gain on sale of policy management system — — — 186,755 186,755 Benefit (provision) for income taxes 48,979 1,432 51,973 (3,021 ) 99,363 Equity in earnings of unconsolidated subsidiaries – related party — — — 73,488 73,488 Net (loss) income $ (165,070 ) $ (4,828 ) $ (175,162 ) $ 10,181 $ (334,879 ) Year Ended December 31, 2016 Small Commercial Business Specialty Risk and Extended Warranty Specialty Program Corporate and Other Total Gross written premiums $ 4,020,184 $ 2,521,324 $ 1,407,762 $ — $ 7,949,270 Revenues: Net written premiums $ 2,246,188 $ 1,722,139 $ 883,000 $ — $ 4,851,327 Change in unearned premiums (42,719 ) (178,240 ) 37,597 — (183,362 ) Net earned premiums 2,203,469 1,543,899 920,597 — 4,667,965 Expenses: Loss and loss adjustment expenses 1,460,503 1,023,470 658,306 — 3,142,279 Acquisition costs and other underwriting expenses 592,569 372,447 265,152 — 1,230,168 Total Expenses 2,053,072 1,395,917 923,458 — 4,372,447 Underwriting income 150,397 147,982 (2,861 ) — 295,518 Other income (loss): Service and fee income 103,776 331,528 3,666 98,996 537,966 Investment income and realized gain on investments 100,788 89,981 53,756 — 244,525 Other expenses (142,632 ) (89,454 ) (49,946 ) (282,033 ) (564,065 ) Interest expense (40,218 ) (25,224 ) (14,084 ) — (79,526 ) Foreign currency loss — (29,289 ) — — (29,289 ) Gain on life settlements 23,338 14,637 8,172 — 46,147 Acquisition gain on purchase 455 48,320 — — 48,775 (Provision) benefit for income taxes (32,407 ) (80,809 ) 215 27,694 (85,307 ) Equity in earnings of unconsolidated subsidiaries – related party — — — 15,626 15,626 Net income (loss) $ 163,497 $ 407,672 $ (1,082 ) $ (139,717 ) $ 430,370 Year Ended December 31, 2015 Small Commercial Business Specialty Risk and Extended Warranty Specialty Program Corporate and Other Total Gross written premiums $ 3,320,650 $ 2,158,921 $ 1,319,966 $ — $ 6,799,537 Revenues: Net written premiums $ 1,932,100 $ 1,450,817 $ 879,011 $ — $ 4,261,928 Change in unearned premiums (45,220 ) (145,781 ) (49,686 ) — (240,687 ) Net earned premiums 1,886,880 1,305,036 829,325 — 4,021,241 Expenses: Loss and loss adjustment expenses 1,234,089 882,306 571,723 — 2,688,118 Acquisition costs and other underwriting expenses 486,800 277,836 228,935 — 993,571 Total expenses 1,720,889 1,160,142 800,658 — 3,681,689 Underwriting income 165,991 144,894 28,667 — 339,552 Other income (loss): Service and fee income 101,302 242,302 2,023 82,516 428,143 Investment income and realized gain on investments 72,796 59,035 32,521 55 164,407 Other expenses (115,560 ) (75,131 ) (45,935 ) (236,627 ) (473,253 ) Interest expense (29,607 ) (19,250 ) (11,769 ) — (60,626 ) Foreign currency gain — 47,301 — — 47,301 Gain on investment in life settlement contracts 9,691 6,301 3,852 — 19,844 Acquisition gain on purchase 5,826 — — — 5,826 (Provision) benefit for income taxes (16,505 ) (31,798 ) (734 ) 10,091 (38,946 ) Equity in earnings of unconsolidated subsidiaries – related party — — — 25,385 25,385 Net income (loss) $ 193,934 $ 373,654 $ 8,625 $ (118,580 ) $ 457,633 The following tables summarize net earned premiums by major line of business, by segment, for the years ended December 31, 2017 , 2016 and 2015 : Small Commercial Business Specialty Risk and Extended Warranty Specialty Program Total Year Ended December 31, 2017: Workers' compensation $ 1,409,947 $ — $ 379,372 $ 1,789,319 Warranty — 970,673 33 970,706 Commercial auto and liability, physical damage 396,245 — 116,172 512,417 Other liabilities — 176,655 191,764 368,419 Medical malpractice — 206,622 — 206,622 Other 500,468 655,811 52,336 1,208,615 Total net earned premiums $ 2,306,660 $ 2,009,761 $ 739,677 $ 5,056,098 Year Ended December 31, 2016: Workers' compensation $ 1,421,744 $ — $ 530,276 $ 1,952,020 Warranty 10,614 748,946 61 759,621 Commercial auto and liability, physical damage 362,774 40,388 130,409 533,571 Other liabilities 22,273 140,256 168,162 330,691 Medical malpractice — 233,136 — 233,136 Other 386,064 381,173 91,689 858,926 Total net earned premiums $ 2,203,469 $ 1,543,899 $ 920,597 $ 4,667,965 Year Ended December 31, 2015: Workers' compensation $ 1,278,509 $ — $ 337,279 $ 1,615,788 Warranty — 623,432 — 623,432 Commercial auto and liability, physical damage 282,593 17,248 141,075 440,916 Other liabilities 50,578 139,463 196,379 386,420 Medical malpractice — 161,767 — 161,767 Other 275,200 363,126 154,592 792,918 Total net earned premiums $ 1,886,880 $ 1,305,036 $ 829,325 $ 4,021,241 The following tables summarize total assets and long lived assets, by segment, as of December 31, 2017 and 2016 : Small Commercial Business Specialty Risk and Extended Warranty Specialty Program Total As of December 31, 2017: Property, equipment and software, net $ 235,581 $ 169,010 $ 52,974 $ 457,565 Less: Assets classified as held for sale (See Note 27) (4,187 ) Total property, equipment and software, net 453,378 Goodwill and intangible assets 409,043 814,845 70,001 1,293,889 Less: Assets classified as held for sale (See Note 27) (360,174 ) Total goodwill and intangible assets 933,715 Total assets 11,133,847 10,011,169 4,073,614 25,218,630 As of December 31, 2016: Property, equipment and software, net $ 158,967 $ 99,699 $ 55,666 $ 314,332 Goodwill and intangible assets 401,889 767,196 74,040 1,243,125 Total assets 9,949,105 8,530,559 4,135,004 22,614,668 The following table summarizes the Company’s operations by major geographic location: Domestic International Total December 31, 2017: Total revenues $ 3,563,436 2,395,505 5,958,941 Property, equipment and software, net 245,270 212,295 457,565 Less: Assets classified as held for sale (See Note 27) (4,187 ) Total property, equipment and software, net 453,378 December 31, 2016: Total revenues $ 2,756,745 2,693,711 5,450,456 Property, equipment and software, net 260,513 53,819 314,332 December 31, 2015: Total revenues $ 1,937,501 2,676,290 4,613,791 Property, equipment and software, net 224,795 32,333 257,128 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following is a summary of the unaudited quarterly results of operations: Three Months Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Net earned premiums $ 1,222,532 $ 1,380,709 $ 1,192,877 $ 1,259,980 Net investment income 63,325 49,226 61,103 53,849 Service and fee income 137,496 168,446 180,505 125,758 Total revenues 1,431,968 1,621,836 1,459,005 1,446,132 Loss and loss adjustment expenses 840,334 1,024,478 1,266,118 953,548 Acquisition costs and other underwriting expenses 328,215 373,195 337,086 584,011 Other 162,853 199,860 177,350 165,759 Interest expense 23,601 24,229 22,873 27,562 Provision (benefit) for income taxes 21,356 (19,727 ) (62,588 ) (38,404 ) Net income (loss) 50,208 29,123 (158,822 ) (255,388 ) Income (loss) attributable to Common Stockholders 22,632 5,829 (174,675 ) (268,959 ) Basic EPS $ 0.13 $ 0.03 $ (0.89 ) $ (1.50 ) Diluted EPS $ 0.13 $ 0.03 $ (0.89 ) $ (1.50 ) Three Months Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Net earned premiums $ 1,074,282 $ 1,181,752 $ 1,196,236 $ 1,215,695 Net investment income 49,415 50,745 59,919 47,968 Service and fee income 128,805 124,305 133,857 150,999 Total revenues 1,260,477 1,371,901 1,398,242 1,419,836 Loss and loss adjustment expenses 715,073 784,393 811,048 831,765 Acquisition costs and other underwriting expenses 272,468 294,476 303,992 359,232 Other 129,267 134,344 139,251 161,203 Interest expense 15,874 17,912 22,124 23,616 Provision for income taxes 18,960 23,807 23,185 19,355 Net income 96,786 144,549 95,201 93,834 Income attributable to Common Stockholders 83,978 127,156 80,650 71,355 Basic EPS $ 0.48 $ 0.73 $ 0.47 $ 0.42 Diluted EPS $ 0.47 $ 0.73 $ 0.47 $ 0.41 Third quarter 2017 results were primarily affected by increased loss and loss adjustment expenses caused by adverse loss development and net catastrophe losses. Please see Note 10. "Loss and Loss Adjustment Expense Reserve", for more information. Fourth quarter 2017 results include an identified and corrected error that originated in prior 2017 periods related to loss and loss adjustment expenses. In accordance with ASC 250, Accounting Changes and Error Correction s, and SEC guidance, the Company evaluated the materiality of the error from both quantitative and qualitative perspectives. Based on this analysis, the Company concluded that the error was immaterial to its financial position, results of operations and cash flows for any previously reported quarterly financial statements or for the current period in which it was corrected. As a result of this error correction, net income for the three months ended December 31, 2017 was understated by $22,153 , while net income for the three months ended June 30, 2017 was overstated by a corresponding amount. Due to changes in number of shares outstanding from quarter to quarter, the total earnings per share of the four quarters may not necessarily equal the earnings per share for the year. |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures On November 3, 2017 , the Company and Mayfield Holdings LLC (“Mayfield”), entered into a Contribution and Stock Purchase Agreement (the “Acquisition Agreement”) with MH JV Holdings L.P. (“Investor”), a newly-formed investment vehicle owned by affiliates of Madison Dearborn Partners, related to the Investor’s acquisition of a majority interest in the portion of the Company's U.S.-based fee businesses that (a) act as managing general agents for the distribution, underwriting and procurement of property and casualty insurance on behalf of certain of our affiliates and other insurance carriers and (b) design, develop, market and act as third party administrators for programs for service contracts, limited warranties and replacement plans as further described in the Acquisition Agreement (the “U.S.-based fee business”). Accordingly, the assets and liabilities related to this deal have been classified as held for sale in the consolidated balance sheets. The operations of the U.S.-based fee business have not been reported as discontinued operations in the consolidated statements of operations as the Company determined the divestiture is not a strategic shift. The Company determined estimated fair value of the net assets held for sale was based on the estimated selling price less costs to sell and was classified as Level 2 within the fair value hierarchy as of December 31, 2017. The classes of assets and liabilities to be sold and classified as held for sale consisted of the following: December 31, 2017 Fixed maturity securities, available for sale $ 35,233 Other investments 230 Cash and cash equivalents 56,062 Restricted cash and cash equivalents 33,802 Accrued interest and dividends 326 Premiums receivable, net 33,933 Deferred policy acquisition costs 211,521 Property, equipment and software, net 4,187 Goodwill 188,315 Intangible assets 171,859 Other assets 165,435 Total assets held for sale $ 900,903 Funds held under reinsurance treaties $ 1,294 Accrued expenses and other liabilities 760,385 Total liabilities held for sale $ 761,679 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events U.S.-based fee businesses On November 3, 2017 , the Company and Mayfield Holdings LLC (“Mayfield”) entered into a Contribution and Stock Purchase Agreement (the “Acquisition Agreement”) with MH JV Holdings L.P. (“Investor”), a newly-formed investment vehicle owned by affiliates of Madison Dearborn Partners, related to the Investor’s acquisition of a majority interest in the portion of the Company’s U.S.-based fee businesses that (a) act as managing general agents for the distribution, underwriting and procurement of property and casualty insurance on behalf of certain Company affiliates and other insurance carriers and (b) design, develop, market and act as a third party administrator for programs for service contracts, limited warranties and replacement plans as further described in the Acquisition Agreement. On February 28, 2018 , the Company completed the transfer of the U.S.-based fee businesses to Mayfield and the Investor's acquisition of a majority interest in Mayfield. Under the terms of the Acquisition Agreement, as amended, (1) Investor contributed to Mayfield approximately $225,800 in cash in exchange for approximately 51% of the common units of Mayfield, (2) the Company contributed into Mayfield equity interests in certain of the entities comprising the U.S.-based fee businesses with an implied value of approximately $217,000 in exchange for approximately 49% of the common units of Mayfield, and (3) one or more subsidiaries of Mayfield acquired from the Company the remaining portion of the entities comprising the U.S.-based fee businesses in exchange for a base cash purchase price of approximately $933,000 , subject to adjustments based upon the amount of cash, indebtedness and transaction expenses of Mayfield and its subsidiaries at the closing of the transaction. Now that the transaction has closed, the Company will cease consolidating the results of the U.S.-based fee businesses within its consolidated financial statements and will report its ownership interest in Mayfield using the equity method of accounting. Merger Agreement On March 1, 2018 , the Company entered into an agreement and plan of merger with Evergreen Parent, L.P. (“Evergreen Parent”), an entity formed by private equity funds managed by Stone Point Capital LLC (“Stone Point”), together with Barry D. Zyskind, the Company’s Chairman and CEO, George Karfunkel and Leah Karfunkel (such individuals, collectively, the “Karfunkel-Zyskind Family”) pursuant to which Evergreen Parent will acquire all of the Company’s outstanding common shares, par value $0.01 per share (the “Common Stock”) that are not currently owned or controlled by the Karfunkel-Zyskind Family and its affiliates and certain related parties (the “Merger Agreement”). The Karfunkel-Zyskind Family and its affiliates and certain related parties currently own or control approximately 55% of the Company's outstanding shares of Common Stock. Pursuant to the transactions contemplated by the Merger Agreement, each outstanding share of the Company’s Common Stock (other than certain excluded shares) will be converted into the right to receive $13.50 per share of Common Stock in cash, without interest and less any required withholding taxes (the “Merger Consideration”). Common Stock owned by the Company, any wholly-owned subsidiary of the Company, a subsidiary formed to participate in the merger, Evergreen Parent (including the Rollover Shares (as defined below)) or holders who have properly exercised dissenters’ rights under Delaware law will not be converted into the right to receive the Merger Consideration. Consummation of the Merger is subject to certain customary conditions, including approval by the Company’s stockholders as described below and receipt of required regulatory approvals. The closing of the Merger is subject to a non-waivable condition that the Merger Agreement be adopted by the affirmative vote of (i) the holders of at least a majority of all outstanding shares of Common Stock and (ii) the holders of at least a majority of all outstanding shares of Common Stock held by the “Public Stockholders” (defined as stockholders other than Evergreen Parent and its affiliates, the Rollover Stockholders (as defined below)) and their respective affiliates and certain related parties and the Company’s directors and officers as set forth on Schedule I to the Merger Agreement), in each case, entitled to vote on the Merger at a meeting of stockholders duly called and held for such purpose (the “Requisite Stockholder Vote”). The Merger Agreement does not contain a financing condition. The Merger Agreement contains customary termination rights for the Company and Evergreen Parent, which were described in the Company’s Current Report on Form 8-K filed on March 1, 2018 . The Merger Agreement also contains customary representations, warranties and covenants of the Company, including covenants to conduct its business in the ordinary course during the interim period between the execution of the Merger Agreement and consummation of the Merger and not to engage in certain types of transactions during this interim period without the prior written consent of Evergreen Parent. Evergreen Parent has obtained equity financing commitments for the transactions contemplated by the Merger Agreement, the aggregate proceeds of which will be sufficient for Evergreen Parent to pay the aggregate Merger Consideration and all related fees and expenses. Private equity funds managed by Stone Point and an investment entity controlled by the Karfunkel-Zyskind Family have committed to capitalize Evergreen Parent, at or immediately prior to the effective time of the Merger, with an aggregate equity contribution in an amount up to $800,000 and $400,000 , respectively, in exchange for equity interests in Evergreen Parent, subject to the terms and conditions set forth in certain equity financing commitment letters, dated as of March 1, 2018 . In addition, the Karfunkel-Zyskind Family and its affiliates and certain related parties (the “Rollover Stockholders”) have entered into a rollover agreement, dated as of March 1, 2018 , pursuant to which such Rollover Stockholders have committed to contribute all of the shares of Common Stock that they own to Evergreen Parent immediately prior to the closing of the Merger (the “Rollover Shares”). The Rollover Agreement also provides that the Rollover Stockholders will, among other things, vote or cause to be voted their respective shares of Common Stock in favor of any proposal to approve the Merger and the Merger Agreement. The terms of the Merger Agreement do not impact the Company’s consolidated financial statements as of and for the year ended December 31, 2017 . |
Schedule I - Summary of Investm
Schedule I - Summary of Investments Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments Other than Investments in Related Parties | SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES (In Thousands) As of December 31, 2017 Cost (1) Fair Value Amount Fixed maturity securities: U.S. treasury securities $ 326,550 $ 324,113 $ 324,113 U.S. government agencies 51,111 50,525 50,525 Municipal bonds 1,035,552 1,045,527 1,045,527 Foreign government 151,376 151,734 151,734 Corporate bonds: — Finance 1,733,745 1,769,912 1,769,912 Industrial 2,263,683 2,292,607 2,292,607 Utilities 323,782 332,422 332,422 Commercial mortgage backed securities 419,279 412,732 412,732 Residential mortgage backed securities: Agency backed 562,043 556,429 556,429 Non-agency backed 6,870 6,777 6,777 Collateralized loan / debt obligations 591,198 600,531 600,531 Asset backed securities 30,080 30,035 30,035 Less: Assets classified as held for sale (See Note 27) (34,363 ) (35,233 ) (35,233 ) Total fixed maturity securities 7,460,906 7,538,111 7,538,111 Equity securities: Preferred stock 499 477 477 Common stock 195,423 211,254 211,254 Total equity securities 195,922 211,731 211,731 Short-term investments, at cost (approximates fair value) 187,793 187,793 187,793 Other invested assets 155,425 155,425 155,425 Total investments other than investments in related parties $ 8,000,046 $ 8,093,060 $ 8,093,060 (1) Original cost of equity securities and, as to fixed maturity securities, original cost reduced by repayments and adjusted for amortization of premiums or accrual of discounts. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | AMTRUST FINANCIAL SERVICES CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEET — PARENT COMPANY ONLY (In Thousands) December 31, 2017 2016 Assets: Cash $ 23,004 $ 32,350 Invested assets 7,561 6,482 Carrying value of subsidiaries, at equity 4,951,318 4,540,301 Other assets 741,199 909,112 Total assets $ 5,723,082 $ 5,488,245 Liabilities: Due to affiliates – net $ 1,086,841 $ 810,349 Revolving credit facility borrowing 130,000 130,000 5.5% due 2021 Convertible senior notes 5,363 5,223 6.125% Notes due 2023 248,458 248,185 Junior subordinated debentures (the "2035-2037 Notes") 122,116 122,028 2.75% due 2044 Convertible senior notes 172,958 166,387 7.25% due 2055 Subordinated notes 145,327 145,202 7.50% due 2055 Subordinated notes 130,795 130,684 Secured loan 10,546 16,684 Promissory notes 52,343 104,685 Other liabilities 428,532 339,716 Total liabilities 2,533,279 2,219,143 Stockholders’ equity Common stock 2,108 1,965 Preferred stock 913,750 913,750 Paid-in and contributed capital 1,639,681 1,384,922 Treasury shares (242,106 ) (310,883 ) Accumulated other comprehensive loss 15,516 (125,723 ) Retained earnings 860,854 1,405,071 Total stockholders’ equity 3,189,803 3,269,102 Total liabilities and stockholders’ equity $ 5,723,082 $ 5,488,245 (continued) Schedule II AMTRUST FINANCIAL SERVICES CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENT OF OPERATIONS — PARENT COMPANY ONLY (In Thousands) Year Ended December 31, 2017 2016 2015 Income: Investment income $ 5,112 $ 293 $ 249 Equity in undistributed net (loss) income of consolidated subsidiaries and partially-owned companies (168,352 ) 563,482 566,818 Acquisition gain on purchase — 455 5,826 Miscellaneous 4,990 10,432 4,239 Total income (158,250 ) 574,662 577,132 Expenses: Interest expense 68,657 66,219 44,401 Loss on extinguishment of debt — — 5,271 Other expenses from operations 108,962 79,353 72,654 Federal tax benefit (990 ) (1,280 ) (2,827 ) Total expenses 176,629 144,292 119,499 Net (loss) income $ (334,879 ) $ 430,370 $ 457,633 (continued) Schedule II AMTRUST FINANCIAL SERVICES CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENT OF COMPREHENSIVE INCOME — PARENT COMPANY ONLY (In Thousands) Year Ended December 31, 2017 2016 2015 Net (loss) income $ (334,879 ) $ 430,370 $ 457,633 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments 143,386 (90,129 ) (89,252 ) Change in fair value of interest rate swap 140 528 621 Minimum pension liability 930 (3,070 ) 2,686 Unrealized (loss) gain on securities: Gross unrealized holding gain (loss) 70,796 177,395 (171,109 ) Less tax expense (benefit) 11,173 46,339 (59,888 ) Net unrealized holding gain (loss) 59,623 131,056 (111,221 ) Reclassification adjustment for investment gain (loss) included in net income, net of tax: Other-than-temporary impairment loss — 25,219 4,315 Other net realized loss on investments (62,841 ) (55,934 ) (1,118 ) Reclassification adjustment for investment gain (loss) included in net income (62,841 ) (30,715 ) 3,197 Other comprehensive income (loss), net of tax $ 141,238 $ 7,670 $ (193,969 ) Comprehensive (loss) income (193,641 ) 438,040 263,664 Less: Comprehensive loss attributable to non-controlling and redeemable non-controlling interest (14,010 ) (19,384 ) (6,928 ) Comprehensive (loss) income attributable to AmTrust Financial Services, Inc. $ (207,651 ) $ 418,656 $ 256,736 (continued) Schedule II AMTRUST FINANCIAL SERVICES CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENT OF CASH FLOWS — PARENT COMPANY ONLY (In Thousands) Year Ended December 31, 2017 2016 2015 Cash flows from operating activities: Net (loss) income $ (334,879 ) $ 430,370 $ 457,633 Adjustments to reconcile net (loss) income to net cash changes in assets (increase) decrease: Depreciation and amortization 9,842 10,216 10,738 Stock based compensation 26,583 23,286 22,763 Discount on note 6,659 6,720 5,628 Dividend from equity investment 733 1,598 984 Acquisition gain — (455 ) (5,826 ) Loss on extinguishment of debt — — 5,271 Carrying value of equity interest in subsidiaries 184,056 (456,776 ) (555,293 ) Equity (earnings) losses, gain on investments in unconsolidated subsidiaries and dividend from subsidiaries, net (5,063 ) (17,224 ) 45,513 Other assets 167,913 (122,411 ) (248,090 ) Changes in liabilities increase (decrease): Due to (from) affiliates 276,492 560,173 (72,067 ) Other liabilities 88,818 61,963 (15,389 ) Net cash provided by (used in) operating activities 421,154 497,460 (348,135 ) Cash flows from investing activities: Capital expenditures (223 ) (1,694 ) (7 ) Investments purchased, net of sales (1,079 ) (4,425 ) (704 ) Investments in subsidiary (464,202 ) (378,393 ) (112,877 ) Acquisition of subsidiary companies, net of cash acquired — (174,678 ) (281,799 ) Net cash used in investing activities (465,504 ) (559,190 ) (395,387 ) Cash flows from financing activities: Issuance of debt — — 745,500 Payment of debt (58,486 ) (6,015 ) (518,450 ) Financing fees — — (9,451 ) Contingent consideration payments (12,621 ) (21,203 ) (12,652 ) Common stock issuance (repurchase), net 298,747 (152,047 ) 483,399 Net proceeds from issuance of preferred stock — 417,264 176,529 Stock option exercise and other (1,651 ) — — Dividends distributed on common stock (124,701 ) (108,229 ) (85,296 ) Dividends distributed on preferred stock (66,284 ) (47,847 ) (31,590 ) Net cash provided by financing activities 35,004 81,923 747,989 Net increase in cash and cash equivalents (9,346 ) 20,193 4,467 Cash and cash equivalents, beginning of the year 32,350 12,157 7,690 Cash and cash equivalents, end of period $ 23,004 $ 32,350 $ 12,157 |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | AMTRUST FINANCIAL SERVICES, INC. AND SUBSIDIARIES SUPPLEMENTARY INSURANCE INFORMATION (In Thousands) As of December 31, 2017, 2016 and 2015 and for the years then ended: Segment Deferred Loss and Loss Adjustment Expense Reserve Unearned Net Earned Premiums Net Loss and Amortization Other Net 2017 Small Commercial Business $ 187,757 $ 6,042,101 $ 1,795,154 $ 2,306,660 $ 92,329 $ 1,812,925 $ 483,240 $ 236,553 $ 2,305,817 Specialty Risk and Extended Warranty 683,171 3,275,873 3,149,531 2,009,761 89,361 1,533,554 304,649 357,452 2,215,003 Specialty Program 51,929 2,820,794 334,554 739,677 45,813 737,999 218,579 22,034 631,696 Corporate and Other — — — — — — — — — Total $ 922,857 $ 12,138,768 $ 5,279,239 $ 5,056,098 $ 227,503 $ 4,084,478 $ 1,006,468 $ 616,039 $ 5,152,516 2016 Small Commercial Business $ 174,596 $ 4,913,241 $ 1,605,055 $ 2,203,469 $ 85,922 1,460,503 $ 411,218 $ 181,351 $ 2,246,188 Specialty Risk and Extended Warranty 653,500 2,620,004 2,690,922 1,543,899 76,466 1,023,470 230,358 142,089 1,722,139 Specialty Program 100,824 2,602,748 584,089 920,597 45,659 658,306 120,238 144,914 883,000 Corporate and Other — 4,723 — — — — — — — Total $ 928,920 $ 10,140,716 $ 4,880,066 $ 4,667,965 $ 208,047 $ 3,142,279 $ 761,814 $ 468,354 $ 4,851,327 2015 Small Commercial Business $ 203,495 $ 3,934,696 $ 1,374,482 $ 1,886,880 $ 69,207 $ 1,234,089 $ 361,107 $ 125,620 $ 1,932,100 Specialty Risk and Extended Warranty 424,349 1,674,006 2,142,719 1,305,036 56,116 882,306 180,922 96,980 1,450,817 Specialty Program 65,795 1,597,259 497,186 829,325 30,915 571,723 120,056 108,886 879,011 Corporate and Other — 2,406 — — 52 — — — — Total $ 693,639 $ 7,208,367 $ 4,014,387 $ 4,021,241 $ 156,290 $ 2,688,118 $ 662,085 $ 331,486 $ 4,261,928 |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Schedule IV - Reinsurance | AMTRUST FINANCIAL SERVICES, INC. AND SUBSIDIARIES REINSURANCE (In Thousands) For the year ended December 31, 2017, 2016 and 2015 : Gross Amount Ceded to Other Companies Amount from Other Companies Net Amount Percent of Amount Assumed to Net 2017 Premiums: General Insurance $ 8,250,524 $ 3,282,114 $ 184,106 $ 5,152,516 3.6 % 2016 Premiums: General Insurance $ 7,727,657 $ 3,097,943 $ 221,613 $ 4,851,327 4.6 % 2015 Premiums: General Insurance $ 6,473,338 $ 2,537,609 $ 326,199 $ 4,261,928 7.7 % |
Schedule VI - Consolidated Supp
Schedule VI - Consolidated Supplementary Property and Casulty Insurance Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | |
Schedule VI - Consolidated Supplementary Property and Casualty Insurance Information | AMTRUST FINANCIAL SERVICES, INC. CONSOLIDATED SUPPLEMENTARY PROPERTY AND CASUALTY INSURANCE INFORMATION (In Thousands) Losses and Loss Adjustment Expenses Incurred Related to Paid Losses and Loss Adjustment Expenses Year Ended December 31, Current Year Prior Years 2017 $ 3,665,506 $ 418,972 $ 3,221,533 2016 2,884,392 257,887 2,545,409 2015 2,654,187 33,931 1,866,288 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Reporting | Basis of Reporting — The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include the accounts of the Company and its domestic and foreign subsidiaries. All significant intercompany transactions and accounts have been eliminated in the consolidated financial statements. |
Premiums | Premiums — Insurance premiums, except for certain specialty risk and extended warranty programs, are recognized as earned on a straight-line basis over the contract period. Insurance premiums on specialty risk and extended warranty programs are earned over the contract period in proportion to the costs expected to be incurred in performing services over the contract. These estimates are based on the expected distribution of losses at the inception of the contract and are evaluated for appropriateness throughout the life of the contract. Unearned premiums represent the portion of premiums written which is applicable to the unexpired term of the contract or policy in force. Premium adjustments on contracts and audit premiums are based on estimates made over the contract period. Premiums earned but not yet billed to insureds are estimated and accrued, net of related costs. These estimates are subject to the effects of trends in payroll audit adjustments. Although considerable variability is inherent in such estimates, management believes that the accrual for earned but unbilled premiums is reasonable. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known; such adjustments are included in current operations. The Company historically has used a percentage of premiums for establishing its allowance for doubtful accounts. The Company reviews its allowance at least annually and makes adjustments as required. |
Loss and Loss Adjustment Expense | Loss and Loss Adjustment Expense Reserves — Loss and loss adjustment expense (“LAE”) reserves represent the estimated ultimate net costs of all reported and unreported losses incurred. The reserves for unpaid losses and LAE are estimated using individual case-basis valuations and statistical analysis and are not discounted. Although considerable variability is inherent in the estimates of reserves for losses and LAE, management believes that the reserves for losses and LAE are adequate. The estimates are continually reviewed and adjusted as necessary in the period the experience develops or new information becomes known. |
Investments | Investments — The Company accounts for its investments in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320 Investments — Debt and Equity Securities , which requires that fixed maturity and equity securities that have readily determined fair values be segregated into categories based upon the Company’s intention for those securities. In accordance with ASC 320, the Company has classified its fixed maturity and certain equity securities as available-for-sale. The Company may sell its available-for-sale securities in response to changes in interest rates, risk/reward characteristics, liquidity needs or other factors. Fixed maturity securities and equity securities classified as available-for-sale are reported at their estimated fair values based on quoted market prices or a recognized pricing service, with unrealized gains and losses, net of tax effects, reported as a separate component of comprehensive income in stockholders’ equity. Additionally, the Company classified certain fixed maturity and equity securities as trading securities. Unrealized gains and losses on trading securities are reported within realized gains and losses. Realized gains and losses are determined on the specific identification method. The Company analyzes its fixed maturity and equity securities in an unrealized loss position for other-than-temporary impairment (“OTTI”) each reporting period. The Company considers an investment to be impaired when it has been in an unrealized loss position greater than a de minimis threshold for over 12 months, excluding securities backed by the U.S. government (e.g., U.S. treasury securities or agency-backed residential mortgage-backed securities). Additionally, the Company reviews whether any of the impaired positions related to securities for which OTTI was previously recognized, and whether the Company intends to sell any of the securities in an unrealized loss position. Once the Company completes the analysis described above, each security is further evaluated to assess whether the decline in the fair value of any investment below its cost basis is deemed other-than-temporary. The Company considers certain factors in completing its review of securities with unrealized losses for OTTI. For equity securities, the Company considers the length of time and the extent to which the fair value has been below cost, the financial condition and near-term prospects of the issuer, including any specific events that may influence the operations of the issuer, and the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value. For fixed maturity securities, the Company considers among other things, the length of time and the extent to which the fair value has been less than the amortized cost basis, adverse conditions and near-term prospects for improvement specifically related to the issuer, industry or geographic area, the historical and implied volatility of the fair value of the security, any information obtained from regulators and rating agencies, the issuer’s capital strength and the payment structure of the security and the likelihood the issuer will be able to make payments in the future (or the historical failure of the issuer to make scheduled interest or principal payments or payment of dividends). For equity securities, a decline in fair value that is considered to be other-than-temporary is recognized in net income based on the fair value of the security at the time of assessment, resulting in a new cost basis for the security. For fixed maturity securities where the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, a decline in fair value is considered to be other-than-temporary and is recognized in net income based on the fair value of the security at the time of assessment, resulting in a new cost basis for the security. If the decline in fair value of a fixed maturity security below its amortized cost is considered to be other-than-temporary based upon other considerations, the Company compares the estimated present value of the cash flows expected to be collected to the amortized cost of the security. The extent to which the estimated present value of the cash flows expected to be collected is less than the amortized cost of the security represents the credit-related portion of the other-than-temporary impairment, which is recognized in net income, resulting in a new cost basis for the security. Any remaining decline in fair value represents the non-credit portion of the other-than-temporary impairment, which is recognized in other comprehensive income (loss). The Company also classified certain of its fixed maturity equity securities as trading securities. Securities classified as trading are generally held for resale in anticipation of short-term market movement. Trading securities are stated at estimated fair market value. Gains and losses, both realized and unrealized, are included in the net realized gains or losses on investment on the consolidated statements of operations. The Company has the following major types of investments: (a) Cash, cash equivalents and restricted cash — Cash consists of uninvested balances in bank accounts. Cash equivalents consist of investments with original maturities of 90 days or less, primarily money market funds. Cash equivalents are carried at cost. Restricted cash consists of any cash or investment that is held for a specific purpose and therefore not available to the company for immediate or general business use. (b) Short-term investments — Short-term investments are carried at cost, which approximates fair value, and include investments with maturities between 91 days and less than 1 year at date of acquisition. (c) Fixed maturity and equity securities, available-for-sale — Fixed maturity and equity securities (common stocks, mutual funds and non-redeemable preferred stock) are classified as available-for-sale and carried at fair value. Unrealized gains or losses on available-for-sale securities are reported as a component of accumulated other comprehensive income. (d) Fixed maturity securities, trading — Fixed maturity securities classified as trading are carried at estimated fair market value. Gains and losses, both realized and unrealized, are reported in the net realized gain or loss on investment. (e) Equity securities, trading — Equity securities classified as trading are carried at estimated fair market value. Gains and losses, both realized and unrealized, are reported in the net realized gain or loss on investment. (f) Mortgage and asset backed securities — For mortgage and asset backed securities, the Company recognizes income using the retrospective adjustment method based on prepayments and the estimated economic life of the securities. The effective yield reflects actual payments to date plus anticipated future payments. (g) Other investments — Other investments consist primarily of equity investments in limited partnerships, including private equity limited partnerships and real estate partnerships, and investments in term loans. The Company applies the equity method of accounting for its investments in limited partnerships in which its ownership interest of the limited partnership enables the Company to exercise significant influence over the investee, and does not result in a controlling financial interest in the investee. The Company recognizes its proportionate share of the net income of these unconsolidated investees in net investment income. The Company invests in term loans, and recognizes interest income, adjusted for the amortization of premiums and discounts, in net investment income. (h) Derivatives and hedging activities — The Company from time to time invests in a limited amount of derivatives and other financial instruments as part of its investment portfolio. Derivatives are financial arrangements among two or more parties with returns linked to an underlying equity, debt, commodity, asset, liability, foreign exchange rate or other index. Unless subject to a scope exclusion, the Company carries all derivatives on the consolidated balance sheets at fair value. For derivatives that do not qualify for hedge accounting, the changes in fair value of the derivative are presented as a component of earnings. The Company primarily utilizes interest rate swaps, which are valued in terms of the contract between the Company and the issuer of the swaps, are based on the difference between the stated floating rate of the underlying indebtedness, and a predetermined fixed rate for such indebtedness with the result that the indebtedness carries a net fixed interest rate. (i) Securities sold under agreements to repurchase, at contract value — The Company from time to time invests in securities sold under agreements to repurchase, which are accounted for as collateralized borrowing transactions and are recorded at their contracted repurchase amounts, plus accrued interest. The Company minimizes the credit risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring exposure and collateral value and generally requiring additional collateral to be deposited with the Company when necessary. Net investment income consists primarily of interest and dividends less expenses. Interest on fixed maturity securities and term loans, adjusted for the amortization of premiums or discount, is recorded as income when earned. Investment expenses are accrued as incurred. Realized investment gains or losses are computed using the specific costs of securities sold, and, if applicable, include write-downs on investments having other-than-temporary declines in value. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in ASC 820 Fair Value Measurement . The framework is based on the inputs used in valuation and gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. Additionally, valuation of fixed maturity securities is more subjective when markets are less liquid due to lack of market based inputs, which may increase the potential that the estimated fair value of an investment is not reflective of the price at which an actual transaction could occur. For investments that have quoted market prices in active markets, the Company uses the quoted market prices as fair value and includes these prices in the amounts disclosed in the Level 1 hierarchy. The Company receives the quoted market prices from nationally recognized third-party pricing services (“pricing service”). When quoted market prices are unavailable, the Company utilizes a pricing service to determine an estimate of fair value. This pricing method is used, primarily, for fixed maturity securities. The fair value estimates provided by the pricing service are included in the Level 2 hierarchy. If the Company determines that the fair value estimate provided by the pricing service does not represent fair value or if quoted market prices and an estimate from pricing services are unavailable, the Company produces an estimate of fair value based on dealer quotations of the bid price for recent activity in positions with the same or similar characteristics to that being valued or through consensus pricing of a pricing service. Depending on the level of observable inputs, the Company will then determine if the estimate is Level 2 or Level 3. Fixed Maturity securities — The Company utilizes a pricing service to estimate fair value measurements for all of its fixed maturity securities. The pricing service utilizes market quotations for fixed maturity securities that have quoted market prices in active markets. Since fixed maturity securities other than U.S. treasury securities generally do not trade on a daily basis, the pricing service prepares estimates of fair value measurements using relevant market data, benchmark curves, sector groupings and matrix pricing. The pricing service utilized by the Company has indicated it will produce an estimate of fair value only if there is verifiable information to produce a valuation. As the fair value estimates of most fixed maturity investments are based on observable market information rather than market quotes, the estimates of fair value other than U.S. Treasury securities are included in Level 2 of the hierarchy. U.S. Treasury securities are included in the amount disclosed in Level 1 as the estimates are based on unadjusted market prices. The Company’s Level 2 investments include obligations of U.S. government agencies, municipal bonds, corporate debt securities and other mortgage backed securities. Equity Securities — The Company utilizes a pricing service to estimate the fair value of the majority of its available-for-sale and trading equity securities. The pricing service utilizes market quotations for equity securities that have quoted market prices in active markets and their respective quoted prices are provided as fair value. The Company classifies the values of these equity securities as Level 1. The pricing service also provides fair value estimates for certain equity securities whose fair value is based on observable market information rather than market quotes. The Company classifies the value of these equity securities as Level 2. The Company also holds certain equity securities that are issued by privately-held entities or direct equity investments that do not have an active market. The Company estimates the fair value of these securities primarily based on inputs such as third party broker quotes, issuers' book value, market multiples, and other inputs. These equity securities are classified as Level 3 due to significant unobservable inputs used in the valuation. Derivatives — The Company estimates fair value using information provided by a pricing service for interest rate swaps and classifies derivatives as Level 2 hierarchy. |
Derivatives | Derivatives — The Company estimates fair value using information provided by a pricing service for interest rate swaps and classifies derivatives as Level 2 hierarchy. |
Service and Fees Revenue | Service and Fee Revenue — Service and fee income includes fee revenue for extended warranty and service plans, commission and broker fees, asset management fees, business service fees, administration fees and other service fees. Service and fee income is recognized when the revenue is earned and realized or realizable. The Company considers revenues to be earned and realized or realizable when all of the following four conditions are met: (1) persuasive evidence of an arrangement exists, (2) the arrangement fee is fixed or determinable, (3) delivery or performance has occurred, and (4) collectability is reasonably assured. The Company promotes and markets extended service plans (“ESP”) to consumers through retailers and certain other marketing organizations usually with terms ranging from one to five years, commencing at the expiration of the manufacturers’ warranty, if applicable. The Company generally insures the obligations under ESPs through contractual liability insurance issued by one of its insurance subsidiaries. In addition, under the terms of separate service agreements with various retailers, the Company provides for marketing and administrative services related to ESP. These service agreements are generally for one to five year terms and can be canceled by either party with thirty days' advance notice. The Company recognizes revenue related to administration services on a straight-line basis over the term of the ESP contracts. Warranty fee revenues are reported in service and fee income. Commission and broker fess are generally recognized at the completion of the placement process, which is typically considered complete on the effective date of the related policy. Asset management fees are recognized over time based on a percentage of assets under management. All other business service fees, administration fees and other service fees are recognized at a point in time or over time when earned and realized or realizable. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs — The Company defers commission expenses, employee compensation and payroll related fringe benefits, premium taxes and assessments as well as underwriting and safety inspection costs that vary with and are primarily related to the successful acquisition of insurance policies. These acquisition costs are capitalized and charged to expense ratably as premiums are earned. The Company may realize deferred policy acquisition costs only if the ratio of loss and loss adjustment expense reserves (calculated on a discounted basis) to the premiums to be earned is less than 100%, as it historically has been. If, hypothetically, that ratio were to be above 100%, the Company could not continue to record deferred policy acquisition costs as an asset and may be required to establish a liability for a premium deficiency reserve. The Company considers anticipated investment income in determining whether a premium deficiency relating to short duration contracts exists. Deferred acquisition costs are presented net of ceding commissions. |
Reinsurance | Reinsurance — Reinsurance agreements that meet the transfer of risk criteria are recorded as prospective reinsurance agreements or retroactive reinsurance agreements based on whether the agreement reinsures future or past reinsured events covered by the underlying insurance contracts. Prospective reinsurance is reinsurance in which a reinsurer agrees to reimburse a ceding entity for losses that may be incurred as a result of future insurable events covered under insurance contracts subject to the reinsurance in exchange for ceded premiums paid to the reinsurer. Retrospective reinsurance is reinsurance in which a reinsurer agrees to reimburse a ceding entity for liabilities incurred as a result of past insurable events covered under insurance contracts subject to the reinsurance in exchange for ceded premiums paid to the reinsurer. Prospective reinsurance premiums, losses and LAE ceded to reinsurers are accounted for on a basis consistent with the accounting for the underlying reinsured contracts. The Company records premiums earned and losses and LAE incurred and ceded to reinsurers as reductions of premium revenue and losses and LAE. The Company accounts for commissions allowed by reinsurers on business ceded as ceding commission, which is a reduction of acquisition costs and other underwriting expenses. The Company earns commissions on reinsurance premiums ceded in a manner consistent with the recognition of the earned premiums on the underlying insurance policies, on a pro rata basis over the terms of the policies reinsured. For retroactive reinsurance agreements, the ceded loss and LAE reserves recorded as reinsurance recoverable in excess the premium for reinsurance is recorded as a deferred gain on retroactive reinsurance, and amortized to earnings using the interest method over the estimated claims settlement period. Any related development on the ceded loss and LAE reserves recoverable under the retroactive reinsurance agreement increases the deferred gain if unfavorable, or decreases the deferred gain if favorable, and a cumulative amortization adjustment based on the change in estimate is recorded to earnings. If the premium for reinsurance exceeds the ceded loss and LAE reserves, or the related favorable development on the ceded loss and LAE reserves entirely offsets the deferred gain on retroactive reinsurance, a loss on retroactive reinsurance is recognized to earnings immediately. Reinsurance recoverable relates to the portion of reserves and paid losses and LAE that are ceded to reinsurers. Reinsurance does not discharge the Company from its primary liability to policyholders, and to the extent that a reinsurer is unable to meet its obligations, the Company is obligated to pay all claims. Amounts recoverable related to ceded loss and LAE reserves with respect to reinsurance agreements are substantially collateralized. The Company continuously monitors the financial condition of prospective and existing reinsurers. As a result, the Company purchases reinsurance from a number of financially strong reinsurers. The Company provides an allowance for reinsurance balances deemed uncollectible. Ceding Commissions on Reinsurance Transactions — Ceding commissions on reinsurance transactions are commissions the Company receives from ceding gross written premiums to third party reinsurers. In connection with the Maiden Quota Share, which is the Company's primary source of ceding commissions, the amount the Company receives is a blended rate based on a contractual formula contained in the individual reinsurance agreements, and the rate may not correlate specifically to the cost structure of the individual segments. The ceding commissions the Company receives cover a portion of its capitalized direct acquisition costs and a portion of other underwriting expenses. Ceding commissions received from reinsurance transactions that represent recovery of capitalized direct acquisition costs are recorded as a reduction of capitalized unamortized deferred acquisition costs and the net amount is charged to expense in proportion to net earned premiums. Ceding commissions received from reinsurance transactions that represent the recovery of other underwriting expenses are recognized in the consolidated statements of operations over the insurance contract period in proportion to the insurance protection provided and classified as a reduction of acquisition costs and other underwriting expenses. Ceding commissions received, but not yet earned, that represent the recovery of other underwriting expenses are classified as a component of accrued expenses and other current liabilities. The Company allocates ceding commissions to its segments based on each segment’s proportionate share of ceded unearned premiums. |
Assessments | Assessments — Insurance related assessments are accrued in the period in which they have been incurred. A typical obligating event would be the issuance of an insurance policy or the occurrence of a claim. The Company is subject to a variety of assessments, such as assessments by state guaranty funds and workers’ compensation second injury funds. State guaranty funds assessments are used by state insurance regulators to cover losses of policyholders of insolvent insurance companies and for the operating expenses of such agencies. The Company uses estimated assessment rates in determining the appropriate assessment expense and accrual. The Company uses estimates derived from state regulators and/or National Association of Insurance Commissioners (“NAIC”) Tax and Assessments Guidelines. |
Business Combinations | Business Combinations — The Company accounts for business combinations under the acquisition method of accounting, which requires the Company to record assets acquired, liabilities assumed and any non-controlling interest in the acquiree at their respective fair values as of the acquisition date in the Company's consolidated financial statements. The Company accounts for the insurance and reinsurance contracts under the acquisition method as new contracts, which requires the Company to record assets and liabilities at fair value. The Company adjusts the fair value loss and LAE reserves by recording the acquired loss reserves based on the Company’s existing accounting policies and then discounting them based on expected reserve payout patterns using a current risk-free rate of interest. This risk free interest rate is then adjusted based on different cash flow scenarios that use different payout and ultimate reserve assumptions deemed to be reasonably possible based upon the inherent uncertainties present in determining the amount and timing of payment of such reserves. The difference between the acquired loss and LAE reserves and the Company’s best estimate of the fair value of such reserves at the acquisition date is recorded either as an intangible asset or another liability, as applicable, and amortized proportionately to the decrease in the acquired loss and LAE reserves over the payout period for the acquired loss and LAE reserves. The Company records the fair value of unearned premiums based on the cash flows of the unexpired portion of the acquired insurance contracts. The Company records contingent consideration at fair value based on the terms of the purchase agreement with subsequent changes in fair value recorded through earnings. The determination of fair value may require management to make significant estimates and assumptions. The purchase price is the fair value of the total consideration conveyed to the seller and the Company records the excess of the purchase price over the fair value of the acquired net assets, where applicable, as goodwill. The Company assigns fair values to intangible assets based on valuation techniques including the income and market approaches. Transaction costs associated with the acquisition of a business are expensed as incurred. The Company includes the results of operations of an acquired business in its consolidated financial statements from the date of the acquisition. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets — The Company accounts for goodwill and intangible assets in accordance with ASC 350 Intangibles — Goodwill and Other. The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, Business Combinations , which requires an acquirer to assign values to the acquired assets and liabilities based on their fair value. In the event that a purchase price paid is in excess of the net assets acquired, any unidentified excess is deemed to be goodwill. Goodwill is not amortized. Additionally, as a result of an acquisition, the Company may obtain identifiable intangible assets. Indefinite lived intangible assets are not amortized. Intangible assets with a finite life are amortized over the estimated useful life of the asset. Goodwill and intangible assets with an indefinite useful life are tested for impairment on an annual basis or more frequently if changes in circumstances indicate that the carrying amount may not be recoverable. If the goodwill or intangible asset is impaired, it is written down to its realizable value with a corresponding expense reflected in the consolidated statements of operations. The Company tests for impairment of goodwill at the reporting unit level. The Company generally combines reporting units, which are a component of an operating segment when they have similar economic characteristics, nature of services, types of customer, distribution methods and regulatory environment |
Property and Equipment | Property, Equipment and Software — Property, equipment and software is recorded at cost. Maintenance and repairs are expensed as incurred. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, as follows: Building 40 years Equipment 5 to 7 years Computer equipment and software 3 to 20 years (primarily 3 years) Leasehold improvements Lesser of lease term or 15 years The Company accounts for its internal use software under ASC 350 Intangibles — Goodwill and Other . Accordingly, the Company capitalizes costs of computer software developed or obtained for internal use that is specifically identifiable, has determinable lives and relates to enhancements in functionality. |
Income Taxes | Income Taxes — The Company files a consolidated U.S. income tax return for its eligible domestic subsidiaries. The Company's non-domestic subsidiaries file income tax returns in their respective local jurisdictions. As part of the U.S. consolidated income tax return filing, the Company is party to federal income tax allocation agreements amongst the includible entities. Under the tax allocation agreements, the Company pays to or receives from its subsidiaries the amount, if any, by which the group’s federal income tax liability was affected by virtue of inclusion of the subsidiary in the consolidated federal return. Deferred income taxes reflect the impact of “temporary differences” between the amount of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. The deferred tax asset primarily consists of book versus tax differences for premiums earned, loss and loss adjustment expense reserve discounting, policy acquisition costs, and net operating losses. Changes in deferred income tax assets and liabilities that are associated with components of other comprehensive income, primarily unrealized investment gains and losses, are recorded directly to other comprehensive income. Otherwise, changes in deferred income tax assets and liabilities are included as a component of income tax expense. The Company recognizes deferred tax assets to the extent the Company believes that these assets are more likely than not to be realized. In assessing the more likely than not recoverability of deferred tax assets, management considers whether it is more likely than not that the Company will generate future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. If necessary, the Company establishes a valuation allowance to reduce the deferred tax assets to the amounts that are more likely than not to be realized. The Company recognizes tax benefits only for tax positions that are more likely than not to be sustained upon examination by taxing authorities. The Company’s policy is to prospectively classify accrued interest and penalties related to any unrecognized tax benefits in its income tax provision. The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. |
Foreign Currency | Foreign Currency — The Company assigns functional currencies to its foreign operations, which are generally the currencies of the local operating environment. Foreign currency amounts are remeasured to the functional currency and the resulting foreign exchange gains and losses are reflected in earnings. Functional currency amounts from the Company’s foreign operations are then translated into U.S. dollars. The change in unrealized foreign currency translation gain or loss during the year, net of tax, is a component of accumulated other comprehensive income (loss). The foreign currency remeasurement and translation items are calculated using current exchange rates for the items reported on the balance sheets and average exchange rates for items recorded in earnings. |
Stock Compensation Expense | Stock Compensation Expense — Stock-based compensation is measured using the fair value method of accounting. The measured cost is recognized over the period during which the recipient is required to provide service in exchange for the award. The Company estimates expected forfeitures when stock-based awards are granted and records compensation expense only for awards that are expected to vest. Share-based payments include restricted stock, restricted stock units, performance share units and stock option grants under the Company’s 2005 Equity Incentive Plan and 2010 Omnibus Incentive Plan. The Company estimates the fair value of options granted using the Black-Scholes option-pricing model, as further described in Note 17. “Share Based Compensation”. |
Earnings Per Share | Earnings Per Share — Earnings per share is calculated under the two-class method, as described in ASC 260, Earnings Per Share . Under the two-class method, earnings for the period are allocated between common stockholders and other participating securities based on their respective rights to receive dividends. Restricted stock awards granted to employees under the Company’s 2005 Equity Incentive Plan and 2010 Omnibus Incentive Plan are considered participating securities as they receive dividends on this stock. There were no restricted stock awards outstanding as of December 31, 2017 . Additionally, the Company follows the treasury stock method related to its contingently convertible debt, as the Company has the ability to settle the conversion premium in either cash or stock. |
Treasury Stock | Treasury Stock — The Company accounts for the treasury stock at the repurchase price as a reduction to stockholders’ equity. |
Concentration and Credit Risk | Concentration and Credit Risk — Financial instruments that potentially subject the Company to concentration of credit risk are primarily cash and cash equivalents, reinsurance recoverables, investments and premiums receivable. Investments are diversified through the types of investments, industry sectors and geographic regions. The Company limits the amount of credit exposure with any one financial institution and believes that no significant concentration of credit risk exists with respect to cash and investments. As of December 31, 2017 and 2016 , the outstanding premiums receivable balance is generally diversified due to the number of entities composing the Company’s customer base. To reduce credit risk, the Company performs ongoing evaluations of its customers’ financial condition. The Company also has receivables from its reinsurers. Reinsurance contracts do not relieve the Company from its obligations to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. However, the Company limits this credit risk by holding funds, letters of credit, assets in trust or other security. The Company periodically evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. It is the policy of management to review all outstanding receivables at period end as well as the bad debt write-offs experienced in the past and establish an allowance for doubtful accounts, if deemed necessary. |
Non-Controlling Interest | Non-controlling Interest — The ownership interest in consolidated subsidiaries that is not owned by the Company is accounted for as non-controlling interest and is presented in stockholders' equity. Net income or loss and comprehensive income or loss of any consolidated subsidiaries with non-controlling interest is attributed to the non-controlling interest in the consolidated statements of operations and consolidated statements of comprehensive income. |
Use of Estimates | Use of Estimates — The preparation of 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 the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions, which include the reserves for losses and loss adjustment expenses, are subject to considerable estimation error due to the inherent uncertainty in projecting ultimate claim amounts that will be reported and settled over a period of many years. In addition, estimates and assumptions associated with the recognition and amortization of deferred policy acquisition costs, the determination of fair value of invested assets and related impairments, and the determination of goodwill and intangible impairments and valuation of deferred tax assets require considerable judgment by management. On an on-going basis, management reevaluates its assumptions and the methods of calculating its estimates. Actual results may differ from the estimates and assumptions used in preparing the consolidated financial statements. |
Reclassification | Certain amounts in the prior years’ consolidated financial statements have been reclassified to conform to the current year’s presentation. The effect of these reclassifications had no impact on previously reported stockholders' equity or net income. |
Recent Accounting Literature | Recent Accounting Pronouncements Recent Accounting Standards, Adopted In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance specifies that when substantially all of the fair value of gross assets acquired is concentrated in a single asset (or a group of similar assets), the assets acquired would not represent a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption is permitted and prospective application is required. The Company adopted this guidance early effective on January 1, 2017. The adoption of this guidance did not have a material impact on the Company's financial position, results of operations, or cash flows. In March 2016, the FASB issued Accounting Standards Update (ASU) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows, and accounting for forfeitures. The adoption of this guidance on January 1, 2017 did not have a material effect on the Company's results of operations, financial position or cash flows. In March 2016, the FASB issued ASU 2016-07, Investments-Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting , which eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The guidance requires the equity method investor to add the cost of acquiring additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The Company adopted this guidance on a prospective basis. The adoption of this guidance on January 1, 2017 did not have a material effect on the Company's financial position, results of operations, or cash flows. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments , which clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amended guidance in this ASU is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence prescribed by Topic 815. The Company adopted this guidance on a modified retrospective basis. The adoption of this guidance on January 1, 2017 did not have a material effect on the Company's financial position, results of operations, or cash flows. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships , which clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815 does not, in and of itself, require designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The Company adopted this guidance on a modified retrospective basis. The adoption of this guidance on January 1, 2017 did not have a material effect on the Company's financial position, results of operations, or cash flows. Recent Accounting Standards, Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The amendments allow an entity to elect to reclassify the income tax effects of the U.S. federal government enacted tax bill, Tax Cuts and Jobs Act, on items within accumulated other comprehensive income to retained earnings. If an entity elects to reclassify the income tax effects, the amount of that reclassification only includes the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, related to items remaining in accumulated other comprehensive income. An entity is not permitted to reclassify the effect of the change in the U.S. federal corporate income tax rate on gross valuation allowances that were originally charged to income from operations. An entity is required to disclose a description of the accounting policy for releasing income tax effects from accumulated other comprehensive income. An entity is permitted to apply the guidance either at the beginning of the period of adoption or retrospectively to each period (or periods) in which the income tax effects of the Tax Cuts and Jobs Act is recognized. This guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period. Early adoption is permitted, including adoption in any interim period. The Company plans to early adopt the new guidance, and currently estimates the cumulative effect adjustment to decrease retained earnings and increase accumulated other comprehensive income by approximately $16 million as of January 1, 2018. In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . The new guidance shortens the amortization period for the premium on callable debt securities to the earliest call date. The amortization period for the discount on callable debt securities is not changed by the new guidance, and continues to be amortized to maturity. The new guidance more closely aligns interest income recorded on debt securities held at a premium or a discount with the economics of the underlying instrument. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the guidance in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company is currently evaluating the impact this standard will have on its financial position, results of operations or cash flows. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which clarifies that ASC 610-20 applies to the derecognition of nonfinancial assets and in substance nonfinancial assets unless other specific guidance applies. As a result, the new guidance will not apply to the derecognition of businesses, nonprofit activities, or financial assets (including equity method investments), or to revenue transactions (contracts with customers). The new guidance also clarifies that an in substance nonfinancial asset is an asset or group of assets for which substantially all of the fair value consists of nonfinancial assets and the group or subsidiary is not a business. In addition, transfers of nonfinancial assets to another entity in exchange for a noncontrolling ownership interest in that entity will be accounted for under ASC 610-20, removing specific guidance on such partial exchanges from ASC 845, Nonmonetary Transactions . As a result of the new guidance, the guidance specific to real estate sales in ASC 360-20 will be eliminated. As such, sales and partial sales of real estate assets will now be subject to the same derecognition model as all other nonfinancial assets. The guidance is effective for fiscal years beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company is currently evaluating the impact this standard will have on its financial position, results of operations or cash flows. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which simplifies the accounting for goodwill impairment charges. Under the current guidance, if the fair value of a reporting unit is lower than its carrying amount, an entity calculates any impairment charge by comparing the implied fair value of goodwill with its carrying amount. The implied fair value of goodwill is calculated by deducting the fair value of all assets and liabilities of the reporting unit from the reporting unit’s fair value. Under the new guidance, an entity will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value not to exceed the amount of goodwill allocated to that reporting unit. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company is currently evaluating the impact this standard will have on its financial position, results of operations or cash flows. In October, 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory . The ASU is part of the FASB’s simplification initiative aimed at reducing complexity in accounting standards. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. This guidance is effective for fiscal year beginning after December 15, 2017, including interim reporting periods within that reporting period. The adoption of this guidance is not expected to have a material impact on the Company's financial position, results of operations or cash flows. In August 2016, due to divergent practices for reporting certain cash receipts and cash payments on the statement of cash flows, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The amendments provide guidance and clarification for eight specific cash flow issues, which include debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate and bank owned life insurance policies, distributions received from equity-method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within that reporting period. In November 2016, due to divergent practices for the presentation of changes in restricted cash and restricted cash equivalents in the statement of cash flows, the FASB issued final guidance on (ASC) 230, Statement of Cash Flows, that requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. This reconciliation can be presented either on the face of the statement of cash flows or in the notes to the financial statements. Entities will also have to disclose the nature of their restricted cash and restricted cash equivalent balances. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The new standard requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected by recording an allowance for credit losses which change in the allowance recorded as credit loss expense based on management's current estimate of expected credit losses each period. The new standard also required impairment relating to credit losses on available-for-sale debt securities to be presented through an allowance for credit losses with changes in the allowance recorded in the period of the change as credit loss expense or reversal of credit loss expense. Any impairment amount not recorded through an allowance for credit losses on available-for-sale debt securities is recorded through other comprehensive income. This new standard is effective for fiscal years beginning after December 15, 2019, including interim reporting periods within that reporting period. The Company is currently evaluating the impact this standard will have on its financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard amends the guidance for leasing transactions. The guidance requires a lessee to classify lease contracts as finance or operating leases, and to recognize assets and liabilities for the rights and obligations created by leasing transactions with lease terms more than twelve months. The guidance substantially retains the criteria for classifying leasing transactions as finance or operating leases. For finance leases, a lessee recognizes a right-of-use asset and a lease liability initially measured at the present value of the lease payments, and recognizes interest expense on the lease liability separately from the amortization of the right-of-use asset. For operating leases, a lessee recognizes a right-of-use asset and a lease liability initially measured at the present value of the lease payments, and recognizes lease expense on a straight-line basis. The guidance requires a lessor to recognize lease income related to an operating lease generally on a straight-line basis over the lease term. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. In January 2018, the FASB issued ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842 that provides a lessee or lessor the election to not assess whether land easements, not currently accounted for as leases under the current lease guidance, are leases under the new standard. On a prospective basis after adoption of the guidance, a lessee or lessor is required to apply the new standard to new or modified land easements. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within that period. Early adoption is permitted. The Company is currently evaluating the impact this standard will have on its financial position, results of operations or cash flows. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Specifically, the guidance (a) requires equity investments to be measured at fair value with changes in fair value recognized in earnings. However, an entity may choose to measure equity investments that do not have readily determinable fair value at cost minus impairment, if any, plus or minus changes resulted from observable price changes in orderly transactions for identical or similar investments of the same issuer, (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (c) eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost, (d) requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (e) requires an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option, (f) requires separate presentation of financial assets and liabilities by measurement category and form on the balance sheet or the notes to the financial statements, and (g) clarifies that the need for a valuation allowance on a deferred tax asset related to an available for sale security should be evaluated with other deferred tax assets. The Company will adopt the guidance on January 1, 2018 and apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values are required to be applied prospectively to equity investments that exist as of the date of adoption. The adoption of this guidance is not expected to have a material impact on the Company's financial position, results of operations, or cash flows. In May 2014, the FASB issued ASU 2014-09, Revenue From Contracts With Customers . The new standard supersedes the revenue recognition requirements in Topic 605, Revenue Recognition , and eliminates industry-specific guidance. The core principal of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve the core principle, an entity should apply the following steps; identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the entity satisfies a performance obligation. The new standard requires variable consideration to be estimated as part of the determination of the transaction price of a contract subject to a constraint based on a probability assessment of revenue reversal. The new standard also requires certain incremental costs incurred to obtain or fulfill a contract to be deferred and amortized on a systematic basis consistent with the transfer of goods or services to the customer. The guidance also requires additional disclosures about the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts, including significant judgments and changes in judgments in determining the timing of satisfaction of performance obligations (over time or at a point in time), determining transaction price and amounts allocated to performance obligations, and assets recognized from the costs incurred to obtain or fulfill a contract. ASU 2014-09 does not apply to insurance contracts, leases, financial instruments, and certain other agreements that are within the scope of other GAAP guidance. Entities are permitted to use either a full retrospective or a modified retrospective approach for the adoption of the new standard. The Company will adopt the standard effective January 1, 2018 using the modified retrospective approach that requires a cumulative adjustment to retained earnings. The Company has completed its initial assessment of its revenue streams to identify contracts with customers that are in the scope of the new standard, and reviewed a selection of representative in-scope contracts (“key contracts”) to identify the impact on revenue recognition and changes to processes and controls. The Company is continuing to evaluate ASU 2014-09 and the related amendments and interpretive guidance to assess any changes to accounting policies, processes, and controls to enable compliance with the new standard. As a provider of property and casualty insurance products, the Company’s insurance contracts are not in the scope of the new guidance. The Company also provides services to its customers in exchange for consideration that may be considered fixed or variable under the guidance. From its review of key contracts, the Company expects to recognize revenue as services are transferred to its customers either over time or at a point in time depending on the nature of its performance obligations and the timing of when its performance obligations are satisfied. The current pattern of revenue recognition is not expected to change significantly upon adoption of the new standard. From its review of key contracts, the Company expects to be constrained from including variable consideration in the determination of transaction price in many of its contracts until the uncertainty associated with variable consideration is resolved. In addition, the new standard requires an entity to defer the incremental costs of obtaining a contract with a customer and to amortize those costs over the anticipated life of the contract as services are transferred to the customer. The incremental costs incurred to obtain and fulfill a contract are required to be deferred when the costs a.) relate directly to a specific contract or anticipated contract b.) generate or enhance resources of the entity that will be used in satisfying performance obligations in the future, and c.) are expected to be recovered. The Company has completed its initial assessment of its costs incurred to obtain or fulfill contracts with customers. The Company expects to continue to defer incremental costs incurred to obtain and fulfill extended service plan contacts and to amortize deferred costs over the performance period. The Company expects to continue to expense certain commissions paid to third parties related to commission revenues earned at a point in time when an insurance policy is bound and the performance obligation is satisfied. The Company is continuing to assess its costs incurred directly related to contracts that meet the criteria for deferral and the basis for amortization of deferred costs. As its assessment continues, the Company may identify additional costs that are currently expensed which are required to be deferred as incremental costs to fulfill contracts under the new guidance. The Company may also determine the basis of amortization of deferred costs is required to change to meet the requirements of the new standard. The Company is finalizing its assessment of the impact of the new standard and related amendments on its consolidated financial statements. The new standard is not expected to have a material impact on the Company's financial position, results of operations or cash flows, however the Company expects to make additional disclosures related to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers as required by the new standard. The Company continues to identify the appropriate changes to its business processes, systems and controls to support revenue recognition and disclosure under the new guidance. |
Significant Accounting Polici44
Significant Accounting Policies Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | ent and Software — Property, equipment and software is recorded at cost. Maintenance and repairs are expensed as incurred. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, as follows: Building 40 years Equipment 5 to 7 years Computer equipment and software 3 to 20 years (primarily 3 years) Leasehold improvements Lesser of lease term or 15 years December 31, 2017 2016 Land $ 28,414 $ 20,678 Building 313,576 137,096 Software 202,568 192,846 Computer equipment 73,795 57,870 Other equipment 66,002 57,773 Leasehold improvements 13,180 29,221 Property, equipment and software, gross 697,535 495,484 Less: Accumulated depreciation (239,970 ) (181,152 ) Assets classified as held for sale (see Note 27) (4,187 ) — Property, equipment and software, net $ 453,378 $ 314,332 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost, Estimated Market Value and Gross Unrealized Appreciation and Depreciation of Available-for-sale Securities | The amortized cost, gross unrealized gains and losses, and the estimated fair value in fixed maturity and equity securities of our securities classified as available-for-sale are presented in the tables below: As of December 31, 2017 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturity securities: U.S. treasury securities $ 301,596 $ 852 $ (3,203 ) $ 299,245 U.S. government agencies 51,111 7 (593 ) 50,525 Municipal bonds 1,035,552 15,853 (5,878 ) 1,045,527 Foreign government 151,376 3,549 (3,191 ) 151,734 Corporate bonds: Finance 1,733,245 48,060 (11,894 ) 1,769,411 Industrial 2,236,966 57,253 (26,064 ) 2,268,155 Utilities 323,782 10,886 (2,246 ) 332,422 Commercial mortgage backed securities 419,279 3,811 (10,358 ) 412,732 Residential mortgage backed securities: Agency backed 562,043 5,779 (11,393 ) 556,429 Non-agency backed 6,870 7 (100 ) 6,777 Collateralized loan / debt obligations 591,198 9,666 (333 ) 600,531 Asset backed securities 30,080 72 (117 ) 30,035 Less: Assets classified as held for sale (See Note 27) (34,363 ) (910 ) 40 (35,233 ) Total fixed maturity securities $ 7,408,735 $ 154,885 $ (75,330 ) $ 7,488,290 Equity securities: Preferred stock $ 499 $ — $ (22 ) $ 477 Common stock 93,081 24,099 (2,962 ) 114,218 Total equity securities $ 93,580 $ 24,099 $ (2,984 ) $ 114,695 As of December 31, 2016 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturity securities: U.S. treasury securities $ 331,036 $ 1,235 $ (1,617 ) $ 330,654 U.S. government agencies 63,467 282 (17 ) 63,732 Municipal bonds 860,444 9,603 (15,877 ) 854,170 Foreign government 149,365 4,237 (726 ) 152,876 Corporate bonds: Finance 1,535,606 38,404 (7,722 ) 1,566,288 Industrial 2,222,843 62,133 (17,115 ) 2,267,861 Utilities 195,607 4,433 (1,210 ) 198,830 Commercial mortgage backed securities 178,092 2,464 (2,562 ) 177,994 Residential mortgage backed securities: Agency backed 1,210,229 13,685 (13,529 ) 1,210,385 Non-agency backed 61,646 586 (1,003 ) 61,229 Collateralized loan / debt obligations 476,767 8,389 (751 ) 484,405 Asset backed securities 29,939 31 (260 ) 29,710 Total fixed maturity securities $ 7,315,041 $ 145,482 $ (62,389 ) $ 7,398,134 Equity securities: Preferred stock $ 4,044 $ — $ (59 ) $ 3,985 Common stock 122,626 12,899 (2,348 ) 133,177 Total equity securities $ 126,670 $ 12,899 $ (2,407 ) $ 137,162 |
Summary of Available for Sale Fixed Securities by Contractual Maturity | A summary of the Company’s available-for-sale fixed securities as of December 31, 2017 and 2016 , by contractual maturity, is shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2017 December 31, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 228,107 $ 226,651 $ 319,275 $ 319,882 Due after one through five years 1,811,295 1,845,531 2,956,429 2,998,711 Due after five through ten years 3,199,736 3,239,839 1,645,211 1,683,112 Due after ten years 594,489 604,997 437,452 432,702 Mortgage and asset backed securities 1,609,471 1,606,505 1,956,674 1,963,727 Less: Assets classified as held for sale (See Note 27) (34,363 ) (35,233 ) — — Total fixed maturity securities $ 7,408,735 $ 7,488,290 $ 7,315,041 $ 7,398,134 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | A progression of the credit portion of other-than-temporary impairments on fixed maturity securities for which the non-credit portion of an impairment has been recognized in other comprehensive income for the years ended December 31, 2017, 2016 and 2015 is shown in the table below: Year Ended December 31, 2017 2016 2015 Credit losses as of the beginning of the year $ 13,367 $ 21,521 $ 8,039 Credit losses on securities for which an OTTI was not previously recognized — 31,659 19,155 Reductions for securities sold, matured, or called (10,697 ) (39,813 ) (5,673 ) Credit losses as of the end of the year $ 2,670 $ 13,367 $ 21,521 Amounts for the years ended December 31, 2016 and 2015 are shown in the table below: Year Ended December 31, 2016 2015 Equity securities recognized in earnings $ 21,028 $ 1,276 Fixed maturity securities recognized in earnings 4,191 17,879 Other invested assets 6,440 — Total OTTI charges $ 31,659 $ 19,155 |
Summary of Gross Unrealized Losses of Fixed-maturities and Equity Securities | The following tables summarize the gross unrealized losses of our fixed maturity and equity securities by length of time the security has continuously been in an unrealized loss position as of December 31, 2017 and 2016 : Less Than 12 Months 12 Months or More Total As of December 31, 2017 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: U.S. treasury securities $ 41,931 $ (543 ) $ 247,035 $ (2,660 ) $ 288,966 $ (3,203 ) U.S. government agencies 48,744 (579 ) 469 (14 ) 49,213 (593 ) Municipal bonds 171,328 (2,675 ) 178,738 (3,203 ) 350,066 (5,878 ) Foreign government 57,399 (2,174 ) 17,093 (1,017 ) 74,492 (3,191 ) Corporate bonds: Finance 419,332 (9,669 ) 91,515 (2,225 ) 510,847 (11,894 ) Industrial 437,126 (16,372 ) 255,384 (9,692 ) 692,510 (26,064 ) Utilities 72,518 (2,104 ) 11,949 (142 ) 84,467 (2,246 ) Commercial mortgage backed securities 81,498 (4,033 ) 157,458 (6,325 ) 238,956 (10,358 ) Residential mortgage backed securities: Agency backed 91,699 (4,655 ) 167,757 (6,738 ) 259,456 (11,393 ) Non-agency backed 2,904 (33 ) 812 (67 ) 3,716 (100 ) Collateralized loan / debt obligations 56,754 (266 ) 4,274 (67 ) 61,028 (333 ) Asset-backed securities 7,101 (22 ) 3,138 1 (95 ) 10,239 (117 ) Total fixed maturity securities $ 1,488,334 $ (43,125 ) $ 1,135,622 $ (32,245 ) $ 2,623,956 $ (75,370 ) Equity securities: Preferred stock $ 477 $ (22 ) $ — $ — $ 477 $ (22 ) Common stock 16,527 (2,960 ) 119 (2 ) 16,646 (2,962 ) Total equity securities $ 17,004 $ (2,982 ) $ 119 $ (2 ) $ 17,123 $ (2,984 ) Less Than 12 Months 12 Months or More Total As of December 31, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: U.S. treasury securities $ 293,155 $ (1,613 ) $ 22,989 $ (4 ) $ 316,144 $ (1,617 ) U.S. government agencies 7,866 (17 ) — — 7,866 (17 ) Municipal bonds 519,578 (15,207 ) 15,742 (670 ) 535,320 (15,877 ) Foreign government 128,863 (688 ) 12,659 (38 ) 141,522 (726 ) Corporate bonds: Finance 1,071,982 (7,210 ) 16,840 (512 ) 1,088,822 (7,722 ) Industrial 1,200,129 (13,648 ) 114,035 (3,467 ) 1,314,164 (17,115 ) Utilities 119,488 (423 ) 10,391 (787 ) 129,879 (1,210 ) Commercial mortgage backed securities 71,780 (1,654 ) 10,910 (908 ) 82,690 (2,562 ) Residential mortgage backed securities: Agency backed 718,098 (13,469 ) 8,144 (60 ) 726,242 (13,529 ) Non-agency backed 24,372 (869 ) 4,462 (134 ) 28,834 (1,003 ) Collateralized loan / debt obligations 97,923 (433 ) 32,937 (318 ) 130,860 (751 ) Asset-backed securities 9,220 (124 ) 4,926 (136 ) 14,146 (260 ) Total fixed maturity securities $ 4,262,454 $ (55,355 ) $ 254,035 $ (7,034 ) $ 4,516,489 $ (62,389 ) Equity securities: Preferred stock $ 529 $ (30 ) $ — $ (29 ) $ 529 $ (59 ) Common stock 46,254 (1,394 ) 9,991 (954 ) 56,245 (2,348 ) Total equity securities $ 46,783 $ (1,424 ) $ 9,991 $ (983 ) $ 56,774 $ (2,407 ) |
Unrealized Gain (Loss) on Investments | The net unrealized gains (losses) on available-for-sale securities for the years ended December 31, 2017, 2016 and 2015 were as follows: Year Ended December 31, 2017 2016 2015 Fixed maturity securities $ 79,555 $ 83,093 $ (48,245 ) Equity securities 21,115 10,492 (4,849 ) Total net unrealized gains (losses) 100,670 93,585 (53,094 ) Deferred income tax (expense) benefit (22,978 ) (27,756 ) 18,583 Cumulative net unrealized gains (losses), net of tax $ 77,692 $ 65,829 $ (34,511 ) Increase (decrease) in net unrealized gains, net of deferred income tax $ 11,863 $ 100,340 $ (108,024 ) |
Trading Securities | The original or amortized cost, estimated fair value and gross unrealized gains and losses of trading securities as of December 31, 2017 and 2016 are presented in the table below: As of December 31, 2017 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturity securities: Corporate bonds: Industrial $ 26,717 $ 124 $ (2,389 ) $ 24,452 Finance 500 1 — 501 U.S. treasury securities 24,954 16 (102 ) 24,868 Total fixed maturity securities $ 52,171 $ 141 $ (2,491 ) $ 49,821 Equity securities: Common stock $ 102,342 $ 6,492 $ (11,798 ) $ 97,036 As of December 31, 2016 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturity securities: Corporate bonds: Industrial $ 24,151 $ 4,379 $ — $ 28,530 Utilities 4,930 322 — 5,252 Total fixed maturity securities $ 29,081 $ 4,701 $ — $ 33,782 Equity securities: Common stock $ 76,163 $ 9,842 $ (4,045 ) $ 81,960 The table below presents the portion of trading gains and losses for the period related to trading securities still held for the years ended December 31, 2017, 2016 and 2015 : Year Ended December 31, 2017 2016 2015 Net (losses) and gains recognized during the period on trading securities $ (15,157 ) $ 14,896 $ 10,037 Less: Net (losses) and gains recognized during the period on trading securities sold during the period (6,517 ) (9,869 ) (5,448 ) Unrealized (losses) and gains recognized during the reporting period on trading securities still held at the reporting date $ (8,640 ) $ 24,765 $ 15,485 |
Net Investment Income | Net investment income for the years ended December 31, 2017, 2016 and 2015 was derived from the following sources: Year Ended December 31, 2017 2016 2015 Fixed maturity securities, available-for-sale $ 245,281 $ 203,998 $ 152,663 Equity securities, available-for-sale 2,287 2,795 2,784 Fixed maturity securities, trading 1,935 — — Equity securities, trading (155 ) 22 (982 ) Cash and short term investments 8,447 6,732 3,718 Other invested assets (1) (20,679 ) — — Total investment income 237,116 213,547 158,183 Investment expenses and interest expense on securities sold under agreement to repurchase (9,613 ) (5,500 ) (1,893 ) Net investment income $ 227,503 $ 208,047 $ 156,290 (1) Includes losses from equity investments. |
Realized Gain (Loss) on Investments | The tables below summarize the gross realized gains and (losses) for the years ended December 31, 2017, 2016 and 2015 . Year Ended December 31, 2017 Gross Realized Gains Gross Realized Losses Net Realized Gains (Losses) Fixed maturity securities, available-for-sale $ 48,066 $ (6,530 ) $ 41,536 Equity securities, available-for-sale 23,817 (2,512 ) 21,305 Fixed maturity securities, trading 5,417 (7,942 ) (2,525 ) Equity securities, trading 17,064 (29,696 ) (12,632 ) Other invested assets 17,770 (2,319 ) 15,451 Total $ 112,134 $ (48,999 ) $ 63,135 Year Ended December 31, 2016 Gross Realized Gains Gross Realized Losses Net Realized Gains (Losses) Fixed maturity securities, available-for-sale $ 71,291 $ (11,819 ) $ 59,472 Equity securities, available-for-sale 6,578 (13,697 ) (7,119 ) Fixed maturity securities, trading 11,918 (1,184 ) 10,734 Equity securities, trading 21,843 (17,681 ) 4,162 Other invested assets 888 — 888 Other-than-temporary impairment of other invested assets — (6,440 ) (6,440 ) Other-than-temporary impairment of fixed maturity securities, available-for-sale — (4,191 ) (4,191 ) Other-than-temporary impairment of equity securities, available-for-sale — (21,028 ) (21,028 ) Total $ 112,518 $ (76,040 ) $ 36,478 Year Ended December 31, 2015 Gross Realized Gains Gross Realized Losses Net Realized Gain (Losses) Fixed maturity securities, available-for-sale $ 17,828 $ (1,516 ) $ 16,312 Equity securities, available-for-sale 1,563 (2,297 ) (734 ) Equity securities, trading 22,602 (12,565 ) 10,037 Other invested assets 1,657 — 1,657 Other-than-temporary impairment of equity securities, available-for-sale — (17,879 ) (17,879 ) Other-than-temporary impairment of equity securities, trading — (1,276 ) (1,276 ) Total $ 43,650 $ (35,533 ) $ 8,117 |
Fair Values of Restricted Assets | The fair values of our restricted assets as of December 31, 2017 and 2016 are as follows: December 31, 2017 2016 Restricted cash $ 480,118 $ 713,338 Restricted investments 3,193,838 2,126,216 Total restricted cash and investments $ 3,673,956 $ 2,839,554 |
Fair Value of Financial Instr46
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Financial Assets and Financial Liabilities on Recurring Basis | The following tables present the level within the fair value hierarchy at which the Company’s financial assets and financial liabilities are measured on a recurring basis as of December 31, 2017 and 2016 : As of December 31, 2017 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. treasury securities $ 324,113 $ 324,113 $ — $ — U.S. government securities 50,525 — 50,525 — Municipal bonds 1,045,527 — 1,045,100 427 Foreign government 151,734 — 151,734 — Corporate bonds and other bonds: Finance 1,769,912 — 1,769,912 — Industrial 2,292,607 — 2,292,607 — Utilities 332,422 — 332,422 — Commercial mortgage backed securities 412,732 — 389,831 22,901 Residential mortgage backed securities: Agency backed 556,429 — 556,429 — Non-agency backed 6,777 — 6,777 — Collateralized loan / debt obligations 600,531 — 600,531 — Asset-backed securities 30,035 — 29,242 793 Equity securities: Equity securities, available-for-sale 114,695 114,211 7 477 Equity securities, trading 97,036 96,555 481 — Short term investments 187,793 — 187,793 — Other investments 5,000 — — 5,000 Life settlement contracts 20,808 — — 20,808 Less: Fixed maturity securities classified as held for sale (see Note 27) (35,233 ) — (35,233 ) — Total financial assets (1) $ 7,963,443 $ 534,879 $ 7,378,158 $ 50,406 Financial Liabilities Securities sold but not yet purchased $ 75,462 $ 70,724 $ 4,738 $ — Life settlement contract profit commission 3,169 — — 3,169 Contingent consideration 75,367 — — 75,367 Total financial liabilities (2) $ 153,998 $ 70,724 $ 4,738 $ 78,536 (1) Does not include assets held for sale of $900,903 carried at fair value and classified as Level 2 within the fair value hierarchy as of December 31, 2017. See Note 27. "Divestitures" for additional information. (2) Does not include liabilities held for sale of $761,679 carried at fair value and classified as Level 2 within the fair value hierarchy as of December 31, 2017. See Note 27. "Divestitures" for additional information. As of December 31, 2016 Total Level 1 Level 2 Level 3 Financial Assets Fixed Maturity Securities: U.S. treasury securities $ 330,654 $ 330,654 $ — $ — U.S. government securities 63,732 — 63,732 — Municipal bonds 854,170 — 854,170 — Foreign government 152,876 — 149,298 3,578 Corporate bonds and other bonds: Finance 1,566,288 — 1,559,800 6,488 Industrial 2,296,391 — 2,291,351 5,040 Utilities 204,082 — 199,503 4,579 Commercial mortgage backed securities 177,994 — 177,994 — Residential mortgage backed securities: Agency backed 1,210,385 — 1,186,315 24,070 Non-agency backed 61,229 — 58,109 3,120 Collateralized loan / debt obligations 484,405 — 484,405 — Asset-backed securities 29,710 — 29,710 — Equity Securities: Equity securities, available-for-sale 137,162 66,228 49,618 21,316 Equity securities, trading 81,960 78,827 — 3,133 Life settlement contracts 356,856 — — 356,856 Total financial assets $ 8,007,894 $ 475,709 $ 7,104,005 $ 428,180 Financial Liabilities Securities sold but not yet purchased $ 36,394 $ 36,394 $ — $ — Securities sold under agreements to repurchase 160,270 — 160,270 — Life settlement contract profit commission 4,940 — — 4,940 Contingent consideration 71,657 — — 71,657 Derivatives 243 — 243 — Total financial liabilities $ 273,504 $ 36,394 $ 160,513 $ 76,597 |
Schedule of Life Settlement Contracts Gain (Loss) | A reconciliation of net income for life settlement contracts in the above table to gain on investment in life settlement contracts net of profit commission included in the consolidated statements of operations for the years ended December 31, 2017 and 2016 is as follows: Year Ended December 31, 2017 2016 Net income (1) $ 59,821 $ 123,872 Premium paid (59,576 ) (65,098 ) Profit commission 1,771 (9,940 ) Other expenses (4,460 ) (2,687 ) (Loss) gain on investment in life settlement contracts $ (2,444 ) $ 46,147 (1) Includes loss on sale of life settlement contracts of $25,104 for the year ended December 31, 2017 . |
Changes in Fair Value of Level 3 Financial Assets And Liabilities | The following tables provide a summary of changes in fair value of the Company’s Level 3 financial assets and liabilities for the years ended December 31, 2017 and 2016 : The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. All transfers are reflected in the table at fair value as of the end of the reporting period. Balance as of January 1, 2017 Net income (loss) Other comprehensive loss Purchases and issuances Sales and settlements Net transfers (out of) into Level 3 Balance as of December 31, 2017 Fixed maturity securities, available-for-sale $ 46,875 $ 327 $ (1,013 ) $ 9,459 $ (8,740 ) $ (22,787 ) $ 24,121 Fixed maturity securities, trading — 1,992 — — (2,304 ) 312 — Equity securities, trading 3,133 (400 ) — 4,484 (3,834 ) (3,383 ) — Equity securities, available-for-sale 21,316 566 (186 ) 613 (38,198 ) 16,366 477 Other investments — — — 5,000 — — 5,000 Life settlement contracts 356,856 59,821 — 16,473 (412,342 ) — 20,808 Life settlement contract profit commission (4,940 ) 1,771 — — — — (3,169 ) Contingent consideration (71,656 ) 7,585 — (29,420 ) 18,124 — (75,367 ) Total $ 351,584 $ 71,662 $ (1,199 ) $ 6,609 $ (447,294 ) $ (9,492 ) $ (28,130 ) Balance as of January 1, 2016 Net income (loss) Other comprehensive income Purchases and Sales and Net transfers Balance as of December 31, 2016 Fixed maturity securities , available-for-sale $ — $ — $ 296 $ 12,901 $ — $ 33,678 $ 46,875 Equity securities, trading — — 1,394 1,739 — — 3,133 Equity securities, available-for-sale 37,211 (25,484 ) 5,042 511 (16,364 ) 20,400 21,316 Life settlement contracts 264,001 123,872 — 17,230 (48,247 ) — 356,856 Life settlement contract profit commission (15,406 ) (9,940 ) — — 20,406 — (4,940 ) Contingent consideration (84,760 ) (7,870 ) — (14,760 ) 35,734 — (71,656 ) Total $ 201,046 $ 80,578 $ 6,732 $ 17,621 $ (8,471 ) $ 54,078 $ 351,584 |
Fair Value Measurements, Recurring and Nonrecurring | The fair value of the Company's debt arrangements as of December 31, 2017 was as follows: December 31, 2017 Carrying Value Fair Value Revolving credit facility $ 130,000 $ 130,000 5.5% Convertible senior notes due 2021 5,363 5,363 2.75% Convertible senior notes due 2044 172,958 172,290 6.125% Senior notes due 2023 248,458 245,247 Junior subordinated debentures due 2035-2037 122,116 110,410 Trust preferred securities due 2033-2037 92,786 86,137 7.25% Subordinated Notes due 2055 145,327 150,000 7.50% Subordinated Notes due 2055 130,795 139,806 Secured loan agreements 174,414 174,414 Promissory notes 66,504 66,929 Total debt $ 1,288,721 $ 1,280,596 |
Fair Value of Portfolio of Life Insurance Policies | The following table summarizes data utilized in estimating the fair value of the portfolio of life insurance policies as of December 31, 2017 and 2016 and, as described in Note 6. “Investment in Life Settlements”, only includes data for policies to which the Company assigned value at those dates: December 31, 2017 2016 Average age of insured 86.1 82.8 Average life expectancy, months (1) 74 107 Average face amount per policy (Amounts in thousands) $ 9,500 $ 6,572 Effective discount rate (2) 12.0 % 12.4 % (1) Standard life expectancy as adjusted for specific circumstances. (2) Effective discount rate (“EDR”) is the Company's estimated internal rate of return on its life settlement contract portfolio and is determined from the gross expected cash flows and valuation of the portfolio. The EDR is inclusive of the reserves and the gross expected cash flows of the portfolio. The Company anticipates that the EDR's range is between 10% and 15% and reflects the uncertainty that exists surrounding the information available as of the reporting date. As the accuracy and reliability if information improves (declines), the EDR will decrease (increase). The change in the EDR from December 31, 2016 to December 31, 2017 resulted from routine updating of life expectancies and other factors relating to operational risk. |
Increase or (Decrease) in Carrying Value of Investment in Life Insurance Policies | The Company's assumptions are, by their nature, inherently uncertain and the effect of changes in estimates may be significant. The fair value measurements used in estimating the present value calculation are derived from valuation techniques generally used in the industry that include inputs for the asset that are not based on observable market data. The extent to which the fair value could reasonably vary in the near term has been quantified by evaluating the effect of changes in significant underlying assumptions used to estimate the fair value amount. If the life expectancies were increased or decreased by 4 months and the discount factors were increased or decreased by 1% while all other variables are held constant, the carrying value of the investment in life insurance policies would increase or (decrease) by the unaudited amounts summarized below for the years ended December 31, 2017 and 2016 : Change in life expectancy Plus 4 Months Minus 4 Months Investment in life policies: December 31, 2017 $ (1,843 ) $ 1,546 December 31, 2016 $ (44,207 ) $ 43,492 Change in discount rate (1) Plus 1% Minus 1% Investment in life policies: December 31, 2017 $ (1,263 ) $ 1,368 December 31, 2016 $ (29,881 ) $ 33,155 (1) Discount rate is a present value calculation that considers legal risk, credit risk and liquidity risk and is a component of EDR. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Summary of assets acquired and liabilities assumed | A summary of the assets acquired and liabilities assumed for ARI are as follows: Assets Cash and investments $ 53,917 Premium receivable, net 15,577 Accrued interest and dividends 375 Reinsurance recoverable 17,554 Other assets 2,116 Intangible assets 1,097 Total assets acquired $ 90,636 Liabilities Loss and loss adjustment expense reserves $ 59,723 Unearned premiums 18,672 Accrued expenses and other liabilities 7,967 Total liabilities assumed $ 86,362 Acquisition price $ 3,819 Acquisition gain $ 455 A summary of the assets acquired and liabilities assumed for AHC are as follows: Assets Cash and investments $ 275,351 Premium receivable 45,288 Accrued interest and dividends 1,162 Reinsurance recoverable 14,512 Other assets 42,622 Goodwill and intangible assets 18,824 Total assets acquired $ 397,759 Liabilities Loss and loss adjustment expense reserves $ 226,922 Unearned premiums 49,285 Accrued expenses and other liabilities 27,583 Total liabilities assumed $ 303,790 Acquisition price $ 93,969 A summary of the assets acquired and liabilities assumed for PDP are as follows: Assets Cash and cash equivalents $ 11,826 Premium receivable 29,188 Other assets 705 Property and equipment, net 776 Goodwill and intangible assets 55,586 Total assets acquired $ 98,081 Liabilities Accrued expenses and other liabilities assumed $ 35,659 Total liabilities $ 35,659 Acquisition price $ 62,422 A summary of the assets acquired and liabilities assumed for Nationale Borg are as follows: Assets Cash and investments $ 216,801 Premium receivable 5,676 Accrued interest and dividends 83 Reinsurance recoverable 8,587 Other assets 14,734 Property and equipment 10,319 Goodwill and intangible assets 57,319 Total assets acquired $ 313,519 Liabilities Loss and loss adjustment expense reserves $ 78,909 Unearned premiums 24,782 Accrued expenses and other liabilities 28,350 Total liabilities assumed $ 132,041 Acquisition price $ 181,478 A summary of the assets acquired and liabilities assumed for First Nationwide are as follows: Assets Cash $ 268 Property and equipment 66 Goodwill and intangible assets 45,632 Total assets acquired $ 45,966 Liabilities Accrued expenses and other liabilities $ 491 Deferred tax liability 6,475 Total liabilities assumed $ 6,966 Acquisition price $ 39,000 A summary of the assets acquired and liabilities assumed for ANV are as follows: Assets Cash and investments $ 415,968 Premium receivable 166,536 Accrued interest and dividends 635 Reinsurance recoverable 128,595 Other assets 142,786 Deferred tax assets 14,488 Property and equipment, net 11,741 Goodwill and intangible assets 147,235 Total assets acquired $ 1,027,984 Liabilities Loss and loss adjustment expense reserves $ 438,724 Unearned premiums 230,604 Deferred tax liabilities 17,066 Accrued expenses and other liabilities 138,313 Total liabilities assumed $ 824,707 Acquisition price $ 203,277 A summary of the assets acquired and liabilities assumed for Genworth are as follows: Assets Cash and investments $ 239,695 Reinsurance recoverable 27,570 Other assets 8,422 Property and equipment 964 Total assets acquired $ 276,651 Liabilities Loss and loss adjustment expense reserves $ 84,463 Unearned premiums 76,308 Accrued expenses and other liabilities 13,060 Total liabilities assumed $ 173,831 Acquisition price $ 54,500 Acquisition gain $ 48,320 A summary of the assets acquired and liabilities assumed for Republic are as follows: Assets Cash and investments $ 620,700 Premium receivable, net 85,455 Accrued interest and dividends 4,779 Reinsurance recoverable 622,660 Deferred tax assets 28,857 Other assets 223,619 Property and equipment 1,576 Goodwill and intangible assets 131,607 Total assets acquired $ 1,719,253 Liabilities Loss and loss adjustment expense reserves $ 879,356 Unearned premiums 301,972 Trust preferred outstanding 92,786 Accrued expenses and other liabilities 129,116 Funds held under reinsurance treaties 83,331 Total liabilities assumed $ 1,486,561 Acquisition price $ 232,692 |
Investment in Life Settlements
Investment in Life Settlements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |
Investment in Life Settlements | The following tables describe the Company’s investment in life settlements as of December 31, 2017 and 2016 : December 31, 2017 December 31, 2016 Expected Maturity Term in Years Life Settlement Contracts Fair Value Face Value Life Settlement Contracts Fair Value (1) Face Value 0 – 1 — $ — $ — — $ — $ — 1 – 2 — — — 2 8,873 12,500 2 – 3 — — — 7 39,495 63,000 3 – 4 1 6,041 10,000 10 37,436 75,422 4 – 5 — — — 10 34,003 82,900 Thereafter 5 14,767 47,000 225 237,049 1,405,414 Total 6 $ 20,808 $ 57,000 254 $ 356,856 $ 1,639,236 (1) As of December 31, 2016 , the Company determined the fair value of 18 policies to be negative and, therefore, assigned a fair value of zero to those policies. For contracts where the Company determined the fair value to be negative and therefore assigned a fair value of zero, the following table details the amount of premiums paid and the death benefits received for the year ended December 31, 2016. The Company had no such contracts as of December 31, 2017. Year Ended December 31, 2016 Number of policies with a negative value from discounted cash flow model 18 Premiums paid for the year ended $ 2,640 Death benefit received $ — |
Premiums to be Paid for Each of Five Succeeding Fiscal Years to keep Life Insurance Policies in Force | The following table details premiums to be paid by the LSC Entities for each of the five succeeding fiscal years to keep the life insurance policies in force as of December 31, 2017 and 2016 : Premiums Due on Life Settlement Contracts December 31, 2017 December 31, 2016 2017 $ — $ 61,518 2018 1,555 49,684 2019 1,620 50,396 2020 1,723 46,632 2021 2,288 43,223 2022 2,147 — Thereafter 9,385 503,817 Total premiums to be paid $ 18,718 $ 755,270 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The composition of intangible assets is summarized as follows: December 31, 2017 Gross Balance Accumulated Amortization Net Value Useful Life Renewal rights $ 92,392 $ 52,609 $ 39,783 4 to 17 years Distribution networks 249,397 75,893 173,504 5 to 20 years Software 6,057 4,929 1,128 3 to 20 years Customer relationships 253,795 97,394 156,401 7 to 18 years Trademarks 9,720 6,920 2,800 3 to 15 years Trademarks 15,326 — 15,326 Indefinite Life Licenses 12,608 12,275 333 5 to 50 years Licenses 47,244 — 47,244 Indefinite Life Use rights 82,159 — 82,159 Indefinite Life Other 89,687 55,683 34,004 1 to 10 years Less: Assets classified as held for sale (See Note 27) (273,873 ) (102,014 ) (171,859 ) N/A Total intangible assets $ 584,512 $ 203,689 $ 380,823 12 years average December 31, 2016 Gross Balance Accumulated Amortization Net Value Useful Life Renewal rights $ 86,525 $ 38,547 $ 47,978 4 to 17 years Distribution networks 194,651 58,294 136,357 5 to 20 years Software 14,649 4,424 10,225 3 to 20 years Customer relationships 251,656 72,633 179,023 7 to 18 years Trademarks 9,720 5,533 4,187 3 to 15 years Trademarks 14,756 — 14,756 Indefinite Life Licenses 12,608 11,047 1,561 5 to 50 years Licenses 46,923 — 46,923 Indefinite Life Use rights 79,681 — 79,681 Indefinite Life Other 67,482 31,613 35,869 1 to 10 years Total intangible assets $ 778,651 $ 222,091 $ 556,560 11 years average |
Schedule of Goodwill | A roll forward of the changes in cumulative goodwill impairment losses, which are all included in the Specialty Risk and Extended Warranty segment, is below: Goodwill $ 614,922 Accumulated impairment losses (182,222 ) Balance as of December 31, 2015 432,700 Goodwill acquired 258,527 Foreign currency translation and other (4,662 ) Goodwill 868,787 Accumulated impairment losses (182,222 ) Balance as of December 31, 2016 686,565 Goodwill acquired 70,147 Foreign currency translation and other (15,505 ) Goodwill 923,429 Accumulated impairment losses (182,222 ) Less: Assets classified as held for sale (See Note 27) (188,315 ) Balance as of December 31, 2017 $ 552,892 The changes in the carrying amount of goodwill by segment for the years ended December 31, 2017 and 2016 are as follows: Small Commercial Business Specialty Risk and Extended Warranty Specialty Program Total Goodwill as of January 1, 2016 $ 145,352 $ 244,894 $ 42,454 $ 432,700 Goodwill additions 73,551 175,165 9,811 258,527 Foreign currency translation and other — (4,662 ) — (4,662 ) Goodwill as of December 31, 2016 $ 218,903 $ 415,397 $ 52,265 $ 686,565 Goodwill additions 16,229 53,918 — 70,147 Foreign currency translation and other (1) 14,813 (20,507 ) (9,811 ) (15,505 ) Less: Assets classified as held for sale (See Note 27) (11,653 ) (141,145 ) (35,517 ) (188,315 ) Goodwill as of December 31, 2017 $ 238,292 $ 307,663 $ 6,937 $ 552,892 (1) - Includes a reclassification of goodwill to intangible assets and adjustments to realign goodwill by segment. |
Schedule of Expected Amortization Expense | The estimated aggregate amortization expense for each of the next five years is: 2018 $ 74,898 2019 66,277 2020 52,200 2021 44,402 2022 37,620 Thereafter 132,556 Less: Assets classified as held for sale (See Note 27) (164,759 ) Total amortization of intangible assets with finite lives $ 243,194 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | December 31, 2017 2016 Other receivables (related party $12,280; $35,547) $ 654,873 $ 580,718 Life settlement contracts 20,808 356,856 Other assets (related party $2,334; $1,298) 463,615 347,230 Funds held with reinsurance companies 66,169 169,217 Loan receivable (related party $256,787; $125,000) 266,176 131,797 Deferred tax asset 116,844 16,032 Less: Assets classified as held for sale (see Note 27) (165,435 ) — Total other assets $ 1,423,050 $ 1,601,850 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | ent and Software — Property, equipment and software is recorded at cost. Maintenance and repairs are expensed as incurred. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, as follows: Building 40 years Equipment 5 to 7 years Computer equipment and software 3 to 20 years (primarily 3 years) Leasehold improvements Lesser of lease term or 15 years December 31, 2017 2016 Land $ 28,414 $ 20,678 Building 313,576 137,096 Software 202,568 192,846 Computer equipment 73,795 57,870 Other equipment 66,002 57,773 Leasehold improvements 13,180 29,221 Property, equipment and software, gross 697,535 495,484 Less: Accumulated depreciation (239,970 ) (181,152 ) Assets classified as held for sale (see Note 27) (4,187 ) — Property, equipment and software, net $ 453,378 $ 314,332 |
Loss and Loss Adjustment Expe52
Loss and Loss Adjustment Expense Reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following table provides a reconciliation of the beginning and ending balances for loss and loss adjustment expense reserves ("Loss and LAE"), reported in the accompanying consolidated balance sheets as of December 31, 2017, 2016 and 2015 : December 31, 2017 2016 2015 Loss and LAE, at beginning of year $ 10,140,716 $ 7,208,367 $ 5,664,205 Less: reinsurance recoverables at beginning of year 3,873,786 2,665,187 2,149,444 Net loss and LAE, at beginning of year 6,266,930 4,543,180 3,514,761 Incurred related to: Current year 3,665,506 2,884,392 2,654,187 Prior year 418,972 257,887 33,931 Total incurred during the year 4,084,478 3,142,279 2,688,118 Paid related to: Current year (1,259,315 ) (1,060,771 ) (847,357 ) Prior year (1,962,218 ) (1,484,638 ) (1,018,931 ) Total paid during the year (3,221,533 ) (2,545,409 ) (1,866,288 ) Commuted loss reserves — — 129,377 Retroactive reinsurance recoverable (1,018,716 ) — — Loss portfolio transfers — 312,049 Acquired outstanding loss and loss adjustment reserves 213,686 783,066 116,044 Allowance for reinsurance recoverable (34,328 ) — — Effect of foreign exchange rates 178,602 31,765 (38,832 ) Net loss and LAE, at end of year 6,469,119 6,266,930 4,543,180 Plus: reinsurance recoverables at end of year 5,669,649 3,873,786 2,665,187 Loss and LAE, at end of year $ 12,138,768 $ 10,140,716 $ 7,208,367 |
Short Duration Contracts (Table
Short Duration Contracts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Short-duration Insurance Contracts, Claims Development | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — — NP 2009 — 132 228 444 539 655 687 682 704 786 34 NP 2010 — — 21,941 36,303 46,847 54,978 56,901 58,172 60,512 66,106 2,193 NP 2011 — — — 44,872 64,698 74,897 76,718 82,821 86,033 91,736 3,078 NP 2012 — — — — 105,371 126,375 131,281 145,504 145,857 158,394 7,418 NP 2013 — — — — — 130,321 133,808 149,313 151,202 164,098 7,643 NP 2014 — — — — — — 122,883 124,157 132,678 139,747 7,123 NP 2015 — — — — — — — 112,425 118,176 122,925 24,480 NP 2016 — — — — — — — — 127,885 139,583 57,763 NP 2017 — — — — — — — — — 132,277 75,875 NP Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 1,015,652 NP = Not practicable Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — 2009 — — 21 191 420 514 549 607 641 661 2010 — — 2,010 14,163 30,259 39,320 43,389 49,087 53,027 54,904 2011 — — — 5,929 14,697 28,341 40,168 49,702 58,710 65,239 2012 — — — — 5,252 21,732 47,279 64,062 82,026 97,739 2013 — — — — — 5,010 26,160 46,363 69,093 85,733 2014 — — — — — — 8,315 25,650 47,455 63,659 2015 — — — — — — — 7,139 24,233 44,151 2016 — — — — — — — — 8,388 23,517 2017 — — — — — — — — — 3,718 Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 439,321 All outstanding liabilities before 2008, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 576,331 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 4,764 $ 4,557 $ 3,518 $ 2,077 $ 5,024 $ 7,616 $ 7,061 $ 6,443 $ 5,164 $ 5,255 188 1,071 2009 — 13,325 12,232 11,811 12,414 15,347 16,405 16,346 14,701 14,427 (249 ) 984 2010 — — 9,714 10,182 9,912 15,206 15,982 18,221 18,182 17,847 106 676 2011 — — — 9,593 11,124 18,348 20,446 20,335 20,161 21,166 431 1,158 2012 — — — — 20,018 32,126 34,694 35,212 37,102 40,358 2,591 2,529 2013 — — — — — 55,729 56,051 57,690 62,219 68,685 4,990 3,324 2014 — — — — — — 83,583 80,041 79,789 89,948 10,300 4,575 2015 — — — — — — — 119,668 120,504 129,764 22,220 7,041 2016 — — — — — — — — 138,204 138,125 58,801 7,637 2017 — — — — — — — — — 173,340 123,070 6,503 Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 698,915 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 256 $ 685 $ 1,288 $ 2,456 $ 3,100 $ 4,331 $ 4,695 $ 4,971 $ 4,898 $ 4,956 2009 — 1,457 4,327 6,686 8,670 9,636 10,351 11,243 13,111 13,788 2010 — — 756 2,679 4,961 7,763 10,730 14,022 16,300 17,353 2011 — — — 739 2,959 6,869 11,075 14,086 16,867 19,087 2012 — — — — 1,423 9,113 17,091 23,605 29,475 33,885 2013 — — — — — 5,226 15,841 28,775 41,296 57,466 2014 — — — — — — 6,981 21,877 39,609 64,298 2015 — — — — — — — 9,076 30,197 64,887 2016 — — — — — — — — 10,287 35,980 2017 — — — — — — — — — 14,922 Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 326,622 All outstanding liabilities before 2008, net of reinsurance 2,212 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 374,505 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — — — 2009 — — — — — — — — — — — — 2010 — — — — — — — — — — — — 2011 — — — — — — — — — — — — 2012 — — — — — — — — — — — — 2013 — — — — — — — — — — — — 2014 — — — — — — 197,476 234,294 242,134 248,968 11,712 13,949 2015 — — — — — — — 84,625 109,278 107,395 9,242 5,221 2016 — — — — — — — — 13,487 7,629 2,594 526 2017 — — — — — — — — — — — — Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 363,992 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ — $ — $ — $ — — — $ — $ — $ — $ — 2009 — — — — — — — — — — 2010 — — — — — — — — — — 2011 — — — — — — — — — — 2012 — — — — — — — — — — 2013 — — — — — — — — — — 2014 — — — — — — 44,067 112,927 148,228 183,380 2015 — — — — — — — 28,835 61,056 76,708 2016 — — — — — — — — 3,200 4,136 2017 — — — — — — — — — — Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 264,224 All outstanding liabilities before 2008, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 99,768 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $— $— $— $— $— $— $— $— $— $— — NP 2009 — 3,739 36,238 40,012 42,219 43,642 39,573 40,562 41,411 42,335 (55 ) NP 2010 — — 86,817 144,052 160,605 165,133 163,539 163,252 163,467 165,912 248 NP 2011 — — — 177,997 210,224 225,817 221,184 220,389 223,326 228,168 622 NP 2012 — — — — 191,636 177,551 172,301 166,194 169,509 178,060 7,705 NP 2013 — — — — — 175,522 172,302 164,529 166,139 169,241 1,147 NP 2014 — — — — — — 175,045 152,890 157,003 153,666 2,008 NP 2015 — — — — — — — 157,435 172,539 172,813 7,417 NP 2016 — — — — — — — — 211,035 208,737 13,798 NP 2017 — — — — — — — — — 270,709 63,840 NP Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 1,589,641 NP = Not practicable Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — 2009 — — 20,678 29,851 35,394 38,077 35,620 37,861 38,493 39,075 2010 — — 29,845 82,361 113,869 131,919 140,259 153,172 154,453 157,549 2011 — — — 83,817 152,495 187,204 198,733 206,610 213,880 219,715 2012 — — — — 70,746 130,662 152,778 157,265 162,605 166,406 2013 — — — — — 58,460 110,430 134,225 144,580 151,995 2014 — — — — — — 69,193 116,021 135,475 142,042 2015 — — — — — — — 74,562 121,188 149,803 2016 — — — — — — — — 82,891 152,413 2017 — — — — — — — — — 117,042 Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 1,296,040 All outstanding liabilities before 2008, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 293,601 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Specialty Risk and Extended Warranty - Property 32.9 % 33.7 % 15.9 % 7.0 % 4.4 % 1.8 % 2.9 % 1.7 % 1.4 % — % Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 180,508 $ 174,424 $ 173,915 $ 174,708 $ 176,546 $ 179,476 $ 180,769 $ 181,359 $ 185,250 $ 190,615 12,337 12,142 2009 — 216,044 221,418 234,453 234,596 237,660 239,939 244,138 244,116 247,725 14,221 19,446 2010 — — 236,893 256,624 262,549 269,261 270,508 278,802 270,822 277,751 17,516 23,294 2011 — — — 278,983 317,893 331,905 331,311 335,628 329,761 335,859 21,550 27,648 2012 — — — — 350,207 385,919 375,645 363,670 378,822 388,257 39,313 39,953 2013 — — — — — 483,520 459,099 441,243 464,432 483,131 46,740 56,832 2014 — — — — — — 723,070 640,801 635,987 660,039 72,539 80,636 2015 — — — — — — — 851,277 747,321 786,080 127,087 94,594 2016 — — — — — — — — 807,942 859,920 255,608 96,458 2017 — — — — — — — — — 897,427 468,122 82,192 Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 5,126,804 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 41,555 $ 93,666 $ 124,777 $ 141,680 $ 152,500 $ 161,544 $ 165,605 $ 168,692 $ 171,392 $ 174,576 2009 — 50,293 116,098 155,654 180,073 196,803 205,968 212,257 216,853 220,740 2010 — — 59,964 133,755 178,415 205,524 222,458 234,404 243,130 249,444 2011 — — — 66,396 160,635 216,215 248,604 269,749 282,573 294,284 2012 — — — — 80,159 181,158 243,713 281,544 305,726 323,641 2013 — — — — — 83,926 211,079 290,037 347,105 384,068 2014 — — — — — — 107,040 296,280 410,629 490,835 2015 — — — — — — — 131,873 356,983 490,561 2016 — — — — — — — — 152,262 374,563 2017 — — — — — — — — — 152,784 Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 3,155,496 All outstanding liabilities before 2008, net of reinsurance 107,953 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 2,079,261 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 50,035 $ 55,067 $ 55,860 $ 56,968 $ 55,598 $ 55,887 $ 55,836 $ 58,104 $ 60,710 $ 60,644 4,164 6,272 2009 — 66,198 71,586 73,952 72,180 74,553 73,987 75,470 79,599 79,658 9,624 6,208 2010 — — 70,648 80,766 81,521 85,397 84,354 86,469 91,565 91,569 12,297 6,239 2011 — — — 61,234 69,332 73,182 70,411 71,531 76,234 76,276 11,887 5,717 2012 — — — — 47,744 65,955 69,358 72,150 75,605 75,507 8,305 7,009 2013 — — — — — 86,150 100,078 104,142 109,268 111,228 14,251 11,341 2014 — — — — — — 128,948 130,413 142,808 145,179 23,514 13,176 2015 — — — — — — — 155,115 176,766 177,652 44,894 17,483 2016 — — — — — — — — 178,360 192,292 67,785 16,901 2017 — — — — — — — — — 151,096 85,887 9,777 Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 1,161,101 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 10,129 $ 29,704 $ 39,913 $ 45,740 $ 49,307 $ 50,760 $ 51,963 $ 52,935 $ 54,361 $ 55,018 2009 — 11,860 35,103 48,287 57,218 62,188 64,958 67,001 68,782 69,580 2010 — — 14,204 38,439 54,083 63,273 68,712 72,174 75,625 76,821 2011 — — — 12,633 34,134 47,454 53,983 58,482 61,206 63,687 2012 — — — — 11,436 30,557 43,481 52,881 57,718 61,206 2013 — — — — — 13,546 41,460 63,540 75,753 83,289 2014 — — — — — — 20,359 58,335 82,962 99,752 2015 — — — — — — — 24,152 68,194 98,630 2016 — — — — — — — — 26,731 72,533 2017 — — — — — — — — — 22,607 Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 703,123 All outstanding liabilities before 2008, net of reinsurance 5,984 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 463,962 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — — NP 2009 — — — — — — — — — — — NP 2010 — — 22,070 71,083 93,714 111,811 118,764 126,656 131,930 134,772 187 NP 2011 — — — 65,375 72,692 88,208 93,584 101,483 105,930 107,558 428 NP 2012 — — — — 84,992 107,044 112,842 121,760 127,694 129,665 1,464 NP 2013 — — — — — 169,954 158,177 168,598 180,887 186,067 7,677 NP 2014 — — — — — — 179,346 183,272 204,358 208,184 19,102 NP 2015 — — — — — — — 198,226 228,741 236,617 32,325 NP 2016 — — — — — — — — 278,934 280,274 74,205 NP 2017 — — — — — — — — — 334,576 184,065 NP Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 1,617,713 NP = Not practicable Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — 2009 — — — — — — — — — — 2010 — — 1,544 56,732 86,408 105,885 114,461 123,578 129,757 133,776 2011 — — — 24,170 54,198 75,730 85,376 95,431 101,254 105,073 2012 — — — — 37,063 81,111 99,624 112,039 120,582 126,081 2013 — — — — — 69,773 117,340 144,786 162,038 173,065 2014 — — — — — — 77,144 144,640 173,228 186,219 2015 — — — — — — — 96,928 162,296 194,444 2016 — — — — — — — — 120,338 201,395 2017 — — — — — — — — — 143,959 Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 1,264,012 All outstanding liabilities before 2009, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 353,701 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 34,038 $ 40,409 $ 41,604 $ 44,012 $ 47,660 $ 48,038 $ 49,025 $ 49,330 $ 50,811 $ 50,984 45 3,513 2009 — 27,887 24,087 27,189 32,811 36,942 37,665 38,389 37,634 37,597 334 3,591 2010 — — 9,727 10,982 17,439 21,270 24,571 26,891 29,031 28,662 234 2,253 2011 — — — 3,801 11,002 16,152 17,903 20,402 20,576 19,905 90 2,570 2012 — — — — 13,797 38,487 47,663 56,108 58,374 56,934 275 6,230 2013 — — — — — 35,938 45,138 58,205 64,970 67,349 1,121 7,292 2014 — — — — — — 32,623 47,314 58,751 59,401 3,852 7,452 2015 — — — — — — — 43,810 69,980 70,108 9,357 5,955 2016 — — — — — — — — 54,720 52,139 12,899 3,121 2017 — — — — — — — — — 47,967 32,646 1,703 Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 491,046 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 5,868 $ 16,398 $ 24,624 $ 35,634 $ 39,893 $ 43,173 $ 45,838 $ 48,128 $ 49,039 $ 50,176 2009 — 4,338 11,485 18,234 24,561 29,964 33,807 36,260 36,812 36,883 2010 — — 2,375 5,818 9,960 15,499 22,049 24,848 27,836 28,133 2011 — — — 2,143 6,384 9,602 13,792 16,383 18,507 19,581 2012 — — — — 5,407 17,167 32,697 43,498 53,138 54,025 2013 — — — — — 8,054 22,299 38,942 53,562 62,264 2014 — — — — — — 7,525 21,359 33,651 47,375 2015 — — — — — — — 10,071 29,612 46,424 2016 — — — — — — — — 11,037 22,871 2017 — — — — — — — — — 7,369 Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 375,101 All outstanding liabilities before 2008, net of reinsurance 932 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 116,877 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 33,283 $ 30,895 $ 32,715 $ 36,673 $ 40,992 $ 43,483 $ 44,128 $ 43,235 $ 44,509 $ 46,902 1,891 2,698 2009 — 29,332 27,461 30,298 41,663 46,808 47,929 48,710 48,333 50,481 1,367 2,980 2010 — — 22,431 24,415 38,719 51,326 56,800 58,189 58,975 61,257 2,228 3,617 2011 — — — 35,252 44,078 63,041 78,112 86,360 89,592 92,242 6,048 4,987 2012 — — — — 58,184 89,405 97,102 118,145 131,498 141,259 13,091 6,015 2013 — — — — — 120,228 123,826 158,866 209,317 248,583 47,280 5,803 2014 — — — — — — 183,233 197,045 249,815 284,131 71,102 7,575 2015 — — — — — — — 187,549 284,995 328,695 133,601 7,431 2016 — — — — — — — — 282,606 321,226 210,602 4,659 2017 — — — — — — — — — 255,053 206,354 3,053 Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 1,829,829 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 3,937 $ 8,013 $ 15,068 $ 22,415 $ 28,848 $ 33,917 $ 37,781 $ 39,614 $ 40,611 $ 43,263 2009 — 2,970 6,920 12,719 22,793 31,446 37,001 40,400 42,976 46,682 2010 — — 2,264 6,242 14,759 25,954 36,075 42,309 49,781 54,755 2011 — — — 3,334 10,511 24,516 39,928 54,396 66,724 74,195 2012 — — — — 4,197 15,489 33,173 65,052 89,387 107,419 2013 — — — — — 6,666 19,936 60,127 119,057 157,903 2014 — — — — — — 9,274 40,088 95,003 147,701 2015 — — — — — — — 12,758 54,606 112,108 2016 — — — — — — — — 14,110 62,239 2017 — — — — — — — — — 14,653 Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 820,918 All outstanding liabilities before 2008, net of reinsurance 1,497 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,010,408 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — — NP 2009 — — — — — — — — — — — NP 2010 — — 50,029 59,315 70,018 75,460 77,587 79,228 81,263 78,433 5,313 NP 2011 — — — 113,129 144,199 152,551 162,188 169,528 176,102 172,716 12,360 NP 2012 — — — — 119,341 131,585 142,688 152,728 165,338 166,075 10,984 NP 2013 — — — — — 108,391 118,631 138,402 156,633 163,246 14,621 NP 2014 — — — — — — 158,618 186,536 215,000 219,682 34,287 NP 2015 — — — — — — — 165,158 194,000 201,001 55,024 NP 2016 — — — — — — — — 181,091 177,541 87,013 NP 2017 — — — — — — — — — 203,882 151,300 NP Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 1,382,576 NP = Not practicable Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — 2009 — — — — — — — — — — 2010 — — 7,410 29,015 41,097 48,236 56,738 61,804 65,961 67,805 2011 — — — 28,760 67,750 90,725 116,031 129,697 136,976 144,123 2012 — — — — 27,333 52,292 76,470 101,453 115,607 131,695 2013 — — — — — 15,345 37,086 69,851 97,277 118,915 2014 — — — — — — 24,733 64,012 100,185 131,015 2015 — — — — — — — 29,048 60,817 90,115 2016 — — — — — — — — 29,447 58,984 2017 — — — — — — — — — 29,372 Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 772,024 All outstanding liabilities before 2008, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 610,552 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Specialty Risk and Extended Warranty - Professional Indemnity and Other Liability 13.6 % 18.4 % 15.7 % 13.9 % 10.1 % 6.8 % 4.7 % 2.4 % — % — % Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total of Incurred-but not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 34,547 $ 35,622 $ 37,092 $ 39,816 $ 39,212 $ 39,014 $ 38,700 $ 38,531 $ 38,561 $ 38,555 (195 ) 871 2009 — 38,059 37,728 42,784 41,947 41,744 40,826 40,649 40,672 40,578 (214 ) 953 2010 — — 30,600 34,851 35,850 37,865 38,748 38,740 38,496 39,554 791 571 2011 — — — 34,434 37,687 39,268 40,618 41,474 41,762 41,570 (188 ) 932 2012 — — — — 40,980 47,494 51,645 56,281 58,170 58,329 2,434 1,226 2013 — — — — — 54,037 60,542 65,557 75,950 79,406 2,937 2,204 2014 — — — — — — 84,175 88,527 100,299 118,184 9,506 3,910 2015 — — — — — — — 122,312 135,230 135,972 23,696 7,318 2016 — — — — — — — — 202,639 202,023 66,490 11,388 2017 — — — — — — — — — 202,304 113,101 11,353 Incurred claims and allocated claim adjustment expenses, net of reinsurance $ 956,475 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited 2008 $ 8,949 $ 16,479 $ 25,175 $ 31,934 $ 36,494 $ 37,516 $ 37,999 $ 38,326 $ 38,456 $ 38,770 2009 — 8,470 20,011 28,399 35,029 38,402 40,049 40,181 40,278 41,198 2010 — — 8,174 14,745 22,647 29,644 34,736 36,992 37,651 39,276 2011 — — — 8,052 18,281 26,278 32,908 37,652 41,028 41,476 2012 — — — — 9,622 22,204 35,148 45,245 52,312 55,750 2013 — — — — — 12,572 25,186 38,901 57,490 71,587 2014 — — — — — — 14,898 35,244 59,967 89,150 2015 — — — — — — — 19,613 42,770 73,929 2016 — — — — — — — — 30,944 74,580 2017 — — — — — — — — — 36,176 Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance $ 561,892 All outstanding liabilities before 2008, net of reinsurance 69 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 394,652 |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Small Commercial Business - General Liability 6.5 % 15.0 % 18.0 % 19.1 % 14.6 % 14.2 % 9.1 % 8.0 % 1.7 % 1.1 % Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Specialty Risk and Extended Warranty -Other International & Warranty 31.7 % 31.1 % 16.4 % 9.7 % 7.1 % 5.5 % 4.1 % 3.0 % — % — % Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Small Commercial Business - Commercial Auto 17.7 % 20.3 % 20.7 % 19.0 % 12.4 % 5.3 % 1.1 % 1.7 % 1.3 % 0.8 % Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Specialty Program - Workers' Compensation 14.7 % 26.8 % 17.4 % 10.6 % 6.2 % 3.6 % 2.9 % 1.7 % 1.7 % 1.1 % Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Specialty Risk and Extended Warranty - Professional Indemnity and Other Liability 13.6 % 18.4 % 15.7 % 13.9 % 10.1 % 6.8 % 4.7 % 2.4 % — % — % Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Specialty Risk and Extended Warranty - Medical Malpractice 4.1 % 11.4 % 17.3 % 15.3 % 10.0 % 8.2 % 6.8 % 3.6 % 2.4 % — % Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Small Commercial Business - Workers Compensation Insurance 18.9% 27.1% 16.5% 10.3% 6.5% 4.2% 2.8% 1.9% 1.5% 1.7% Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Small Commercial Business - Tower Cut-Through 28.8 % 23.3 % 14.4 % 14.1 % — % — % — % — % — % — % Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Specialty Program - Commercial Auto 12.7 % 21.0 % 20.2 % 20.4 % 14.7 % 7.7 % 6.9 % 2.3 % 1.0 % 2.2 % Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Specialty Program - General Liability 4.5 % 9.2 % 15.1 % 19.3 % 16.0 % 11.6 % 8.8 % 5.7 % 4.7 % 5.7 % Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Specialty Risk and Extended Warranty - Property 32.9 % 33.7 % 15.9 % 7.0 % 4.4 % 1.8 % 2.9 % 1.7 % 1.4 % — % |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | December 31, 2017 2016 Net Liability for unpaid losses and loss adjustment expenses: Small Commercial Business Segment - US Workers' Compensation $ 2,079,261 $ 1,524,055 Small Commercial Business Segment - US Commercial Auto 394,652 337,188 Small Commercial Business Segment - US General Liability 374,505 296,241 Small Commercial Business Segment - Tower Cut-Through 99,768 — Specialty Program Segment - US Commercial Auto 116,877 133,353 Specialty Program Segment - US Workers' Compensation 463,962 429,204 Specialty Program Segment - US General Liability 1,010,408 811,212 Specialty Risk and Extended Warranty Segment - Medical Malpractice 576,331 433,557 Specialty Risk and Extended Warranty Segment - Property 293,601 209,152 Specialty Risk and Extended Warranty Segment - Professional Indemnity and Other 610,552 587,684 Specialty Risk and Extended Warranty Segment - Other International and Warranty 353,701 229,499 Other Short-duration Lines 801,944 1,036,586 Total reinsurance recoverable on unpaid claims 7,175,562 6,027,731 Retroactive Reinsurance Adjustments (1,018,716 ) — Reinsurance Recoverable on loss and loss adjustment expenses: Small Commercial Business Segment 2,583,825 2,011,160 Specialty Program Segment 1,020,804 1,029,023 Specialty Risk and Extended Warranty Segment 1,046,304 833,603 Retroactive Reinsurance Adjustments 1,018,716 — Total reinsurance recoverable on loss and loss adjustment expense 5,669,649 3,873,786 Insurance not presented in the tables above: Reserves related to NCCI pooling arrangement 110,924 108,514 Unallocated claims adjustment expense $ 201,349 $ 130,685 Total 312,273 239,199 Total gross liability for unpaid loss and loss adjustment expense $ 12,138,768 $ 10,140,716 The following table presents a reconciliation of certain items presented in the table presented in Note 10. Loss and Loss Adjustment Expense Reserves (the "Loss reserve roll forward") with the same items presented within the tables in this note, Note 11. Short Duration Contracts (the "Short duration contracts tables"), for the year ended December 31, 2017 . December 31, 2017 Development (Favorable)/Adverse for Current Year as Indicated by SDC $ 517,179 Development on Accident Years Prior to SDC Included Years (19,489 ) Claims Development Recorded on acquired reserves before acquisition (21,399 ) Lines of Business Not Included in Note 11 (62,749 ) Effect of Foreign Exchange Rates and Allocations by Accident Year 5,430 Development (Favorable)/Adverse for Current Year as Indicated by Loss Reserve Roll Forward $ 418,972 December 31, 2017 Paid Loss for Current Year as Indicated by SDC $ 2,247,017 Paid Loss on Accident Years Prior to SDC Included Years 13,706 Line of Business Not Included in Note 11 849,901 Paid Loss Related to NCCI Pooling Arrangement 29,654 Paid Unallocated Claims Adjustment Expense 122,162 Effect of Foreign Exchange Rates (40,907 ) Paid Loss for Current Year as Indicated by Loss Reserve Roll Forward $ 3,221,533 Loss Portfolio Year of Transfer Initial Reserves (includes ULAE) (Unaudited) Reserves as of December 31, 2017 (includes ULAE) Payments since Transfer (Unaudited) Subsequent Adverse (Favorable) Development (Unaudited) Majestic Insurance Company 2011 $ 209,670 $ 110,412 $ 140,732 $ 41,474 HITNY 2013 $ 83,188 $ 18,356 $ 35,351 $ (29,481 ) ECTNY 2014 $ 21,988 $ 4,378 $ 9,415 $ (8,195 ) Magna Carta 2016 $ 162,979 $ 79,042 $ 64,151 $ (19,786 ) |
Accrued Expenses and Other Li54
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | December 31, 2017 2016 Deferred revenue $ 636,170 $ 609,722 Commission payable 431,589 410,493 Accounts payable and other 311,050 337,057 Premium taxes, assessments and surcharges payable 186,241 165,289 Contingent consideration 75,367 71,657 Dividend payable 33,442 41,448 Less: Amounts classified as held for sale (See Note 27) (760,385 ) $ — Total accrued expenses and other liabilities $ 913,474 $ 1,635,666 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | The Company’s outstanding debt consisted of the following as of December 31, 2017 and 2016 : December 31, 2017 2016 Revolving credit facility $ 130,000 $ 130,000 5.5% Convertible senior notes due 2021 (the "2021 Notes") 5,363 5,223 2.75% Convertible senior notes due 2044 (the "2044 Notes") 172,958 166,387 6.125% Notes due 2023 (the "2023 Notes") 248,458 248,185 Junior subordinated debentures (the "2035-2037 Notes") 122,116 122,028 Trust preferred securities (the "2033-2037 TPS Notes") 92,786 92,786 7.25% Subordinated notes due 2055 (the "7.25% 2055 Notes") 145,327 145,202 7.50% Subordinated notes due 2055 (the "7.50% 2055 Notes") 130,795 130,684 Secured loan agreements 174,414 75,762 Promissory notes 66,504 118,643 Total debt $ 1,288,721 $ 1,234,900 |
Aggregate Scheduled Maturities of Borrowings | Aggregate scheduled maturities of the Company’s outstanding debt as of December 31, 2017 are: 2018 $ 7,220 2019 161,595 (1) 2020 27,436 2021 16,507 (2) 2022 10,401 Thereafter 1,080,589 (2) Total scheduled payments 1,303,748 Unamortized deferred origination costs (15,027 ) Total debt $ 1,288,721 (1) Amount does not include scheduled maturities of notes payable on the collateral loan to Maiden of $167,975 in June 2019. See Note 15. "Related Party Transactions" for additional information. (2) Amount includes debt outstanding under the 2021 Notes and the 2044 Notes, which is net of unamortized original issue discount of $611 and $42,546 , respectively. The annual future minimum compensation payments in the aggregate through 2021 are as follows: 2018 $ 21,513 2019 9,247 2020 4,500 2021 945 Future minimum compensation payments $ 36,205 |
Schedule of Line of Credit Facilities | Additionally, the Company utilizes various letters of credit in its operations. The following is a summary of the Company's letters of credit as of December 31, 2017 : Letters of Credit Limit Letters of Credit Outstanding Letters of Credit Available Revolving credit facility $ 175,000 $ 173,072 $ 1,928 Funds at Lloyd's facility 614,842 573,554 41,288 ING Bank N.V., BHF Bank Aktiengesellschaft, and Deutsche Bank AG facilities 104,084 72,228 31,856 Comerica Bank facility 75,000 42,900 32,100 Other letters of credit, in aggregate 139,060 139,060 — |
Interest Income and Interest Expense | Interest expense, including amortization of original issue discount and deferred origination costs, as well as applicable bank fees, related to the Company's outstanding debt and letters of credit for the years ended December 31, 2017 , 2016 , and 2015 was: Year Ended December 31, 2017 2016 2015 Revolving credit facility $ 6,172 $ 4,617 $ 3,726 2021 Notes 471 461 825 2044 Notes 13,013 12,571 12,160 2023 Notes 15,587 15,587 15,587 2035-2037 Notes 5,785 6,077 6,641 2033-2037 TPS Notes 4,368 2,772 — 7.25% 2055 Notes 11,000 11,000 5,868 7.50% 2055 Notes 10,237 10,237 2,939 Secured loan agreements 6,361 2,536 872 Promissory notes 4,585 4,954 623 Funds at Lloyd's facility 5,231 4,484 3,350 Other, including interest income 15,455 4,230 2,764 Total interest expense $ 98,265 $ 79,526 $ 55,355 |
Amounts Recorded for Notes | The following table shows the amounts recorded, not including deferred financing costs, for the 2021 Notes and 2044 Notes as of December 31, 2017 and 2016 : December 31, 2017 2016 Outstanding Principal Unamortized OID Net Carrying Amount Outstanding Principal Unamortized OID Net Carrying Amount 2021 Notes $ 6,031 $ (611 ) $ 5,420 $ 6,031 $ (735 ) $ 5,296 2044 Notes 217,697 (42,546 ) 175,151 215,424 (46,528 ) 168,896 Total $ 223,728 $ (43,157 ) $ 180,571 $ 221,455 $ (47,263 ) $ 174,192 |
Trust Preferred Securities | The table below summarizes the Company’s trust preferred securities as of December 31, 2017 : Name of Trust Aggregate Liquidation Amount of Trust Preferred Securities Aggregate Liquidation Amount of Common Securities Aggregate Principal Amount of Notes Stated Maturity of Notes Per Annum Interest Rate of Notes AmTrust Capital Financing Trust I $ 25,000 $ 774 $ 25,774 3/17/2035 5.000 % (1) AmTrust Capital Financing Trust II 25,000 774 25,774 6/15/2035 4.988 % (1) AmTrust Capital Financing Trust III 30,000 928 30,928 9/15/2036 4.888 % (2) AmTrust Capital Financing Trust IV 40,000 1,238 41,238 3/15/2037 4.588 % (3) Total $ 120,000 $ 3,714 $ 123,714 (1) The interest rate is three-month LIBOR plus 3.40% . (2) The interest rate is three-month LIBOR plus 3.30% . (3) The interest rate is three-month LIBOR plus 3.00% . The table below summarizes the Company’s trust preferred securities assumed in the Republic acquisition as of December 31, 2017 : Name of Trust Aggregate Aggregate Aggregate Stated Per Annum RIG Capital Trust I $ 10,000 $ 310 $ 10,310 9/30/2033 5.695 % (1) RIG Capital Statutory Trust II 20,000 619 20,619 10/29/2033 5.228 % (2) RIG Capital Trust III 20,000 619 20,619 12/15/2036 4.788 % (3) RIG Capital Trust IV 25,000 774 25,774 6/15/2037 4.788 % (3) RIG Capital Trust V 15,000 464 15,464 9/15/2037 4.888 % (4) Total $ 90,000 $ 2,786 $ 92,786 (1) The interest rate is three-month LIBOR plus 4.00% . (2) The interest rate is three-month LIBOR plus 3.85% . (3) The interest rate is three-month LIBOR plus 3.20% . (4) The interest rate is three-month LIBOR plus 3.30% . |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Schedule of Primary Reinsurance Programs | The following tables provide a summary of the Company's primary reinsurance programs as of December 31, 2017 for the U.S. and internationally: 2017 Domestic Reinsurance Programs Type of Reinsurance Retention Event Protection Coverage Workers’ Compensation, Excess of Loss $ 10,000 $ 710,000 100% of $700,000 Property, Per Risk Excess of Loss $ 3,000 $ 36,000 100% of $33,000 Property, Catastrophe Excess of Loss $ 20,000 $ 830,000 100% of $810,000 Surety, Excess of Loss $ 500 $ 30,000 89% of $29,500 Casualty/Professional, Excess of Loss $ 3,000 $ 50,000 100% of $47,000 Umbrella, Quota Share $ 1,500 $ 10,000 100% of $8,500 Equipment Breakdown, Quota Share $ — $ 100,000 100% of $100,000 2017 International Reinsurance Programs Type of Reinsurance Retention Event Protection Coverage Property, Per Risk Excess of Loss (AEL) $ 640 $ 6,400 100% of $5,760 Property, Catastrophe Excess of Loss (AEL and ATL) $ 6,000 $ 78,000 100% of $72,000 Property, Per Risk Excess of Loss (ATL) $ 2,500 $ 10,000 100% of $7,500 Surety, Excess of Loss and Quota Share (AEL) $ 5,650 $ 39,550 100% of $33,900 Casualty, Excess of Loss (AEL) $ 3,000 $ 15,000 100% of $12,000 Accident and Health, Excess of Loss (AEL) $ 800 $ 25,600 100% of $24,960 Car Care, Excess of Loss (AEL) $ 1,000 $ 65,000 100% of $64,000 Medical Malpractice, Quota Share (AEL) $ 10,400 $ 13,000 20% of $13,000 Medical Malpractice, Quota Share (AIUL) $ 7,800 $ 13,000 40% of $13,000 Personal Accident, Excess of Loss (ATL) $ 2,000 $ 60,000 100% of $58,000 Pecuniary Risks (AEL and ATL) $ 3,000 $ 49,000 100% of $46,000 |
Schedule of Effect of Reinsurance with Unrelated Companies on Premiums and Losses | The effect of reinsurance with related and unrelated companies on premiums and losses for 2017 , 2016 and 2015 are as follows: Year Ended December 31, 2017 2016 2015 Written Earned Written Earned Written Earned Premiums: Direct $ 8,250,524 $ 7,710,610 $ 7,727,657 $ 7,370,202 $ 6,473,338 $ 5,994,848 Assumed 184,106 248,457 221,613 256,182 326,199 369,480 Ceded (3,282,114 ) (2,902,969 ) (3,097,943 ) (2,958,419 ) (2,537,609 ) (2,343,087 ) Total $ 5,152,516 $ 5,056,098 $ 4,851,327 $ 4,667,965 $ 4,261,928 $ 4,021,241 As of December 31, 2017 2016 2015 Assumed Ceded Assumed Ceded Assumed Ceded Loss and LAE reserves $ 1,038,834 $ (4,641,387 ) $ 890,053 $ (3,873,786 ) $ 692,447 $ (2,643,443 ) Unearned premiums 68,422 (2,137,347 ) 132,840 (1,994,092 ) 167,409 (1,530,551 ) Loss and LAE expenses incurred 227,291 (2,245,191 ) 461,556 (1,776,538 ) 352,362 (1,497,558 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Results of Operations Related to Reinsurance Agreements | The following is the effect on the Company’s results of operations for the years ended December 31, 2017, 2016 and 2015 related to the Maiden Quota Share agreement: Year Ended December 31, 2017 2016 2015 Results of operations: Premiums written – ceded $ (2,044,770 ) $ (2,012,452 ) $ (1,899,148 ) Change in unearned premiums – ceded 38,433 66,938 182,967 Earned premiums – ceded $ (2,006,337 ) $ (1,945,514 ) $ (1,716,181 ) Ceding commissions on premiums written $ 649,280 $ 654,140 $ 564,156 Ceding commissions – deferred (39,959 ) (54,631 ) (53,364 ) Ceding commissions – earned $ 609,321 $ 599,509 $ 510,792 Incurred loss and loss adjustment expenses – ceded $ 1,561,261 $ 1,312,347 $ 1,116,308 |
Acquisition Costs and Other U58
Acquisition Costs and Other Underwriting Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Components of acquisition costs and other underwriting expenses | The following table summarizes the components of acquisition costs and other underwriting expenses for the years ended December 31, 2017, 2016 and 2015 . Year Ended December 31, 2017 2016 2015 Policy acquisition expenses $ 1,006,468 $ 761,814 $ 662,085 Other insurance general and administrative expense 616,039 468,354 331,486 Total acquisition costs and other underwriting expenses $ 1,622,507 $ 1,230,168 $ 993,571 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Schedule of Option Granted, Exercised and Expired | The following schedule shows all Stock Options granted, exercised, and forfeited under the Plan for the years ended December 31, 2017, 2016 and 2015 : Year Ended December 31, 2017 2016 2015 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding at beginning of year 2,305,351 $ 7.54 2,783,880 $ 6.99 3,868,740 $ 5.80 Granted — — 10,000 25.91 100,000 28.04 Exercised (881,097 ) 5.67 (474,657 ) 4.17 (1,109,712 ) 4.59 Forfeited — — (13,872 ) 24.69 (75,148 ) 9.17 Outstanding at end of year 1,424,254 $ 8.71 2,305,351 $ 7.54 2,783,880 $ 6.99 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The per share fair value of options was estimated at the date of grant based on the following weighted average assumptions as of December 31, 2016 and 2015 : December 31, 2016 2015 Volatility 30.04 % 40.81 % Risk-free interest rate 1.94 % 1.97 % Weighted average expected lives in years 6.00 6.25 Dividend rate 2.62 % 1.84 % Forfeiture rate 0.50 % 0.50 % |
Summary of Restricted Stock and RSU Activity | A summary of the Company’s restricted stock and RSU activity for the years ended December 31, 2017, 2016 and 2015 is shown below: Year Ended December 31, 2017 2016 2015 Shares or Units Weighted Average Grant Date Fair Value Shares or Units Weighted Average Grant Date Fair Value Shares or Units Weighted Average Grant Date Fair Value Non-vested at beginning of year 1,965,011 $ 24.38 1,853,516 $ 20.54 2,611,022 $ 16.70 Granted 2,792,855 12.75 994,289 25.91 476,942 29.27 Vested (741,576 ) 22.76 (832,524 ) 17.65 (1,200,800 ) 15.66 Forfeited (114,012 ) 19.60 (50,270 ) 24.19 (33,648 ) 20.95 Non-vested at end of year 3,902,278 $ 16.51 1,965,011 $ 24.38 1,853,516 $ 20.54 A summary of the Company's PSU activity for the years ended December 31, 2017, 2016 and 2015 is shown below: Year Ended December 31, 2017 2016 2015 Shares or Units Weighted Average Grant Date Fair Value Shares or Units Weighted Average Grant Date Fair Value Shares or Units Weighted Average Grant Date Fair Value Non-vested at beginning of year 680,597 $ 25.57 752,466 $ 24.58 549,670 $ 19.42 Granted 653,125 13.17 198,881 26.16 373,628 29.93 Vested (252,221 ) 23.49 (234,358 ) 22.89 (155,842 ) 18.86 Forfeited (67,262 ) 25.16 (36,392 ) 25.64 (14,990 ) 28.13 Non-vested at end of year 1,014,239 $ 18.13 680,597 $ 25.57 752,466 $ 24.58 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consists of the following for the years ended December 31, 2017, 2016 and 2015 : Year Ended December 31, 2017 2016 2015 Current expense (benefit): Federal $ (11,415 ) $ (13,084 ) $ 74,967 Foreign 37,360 46,020 20,442 Total current tax expense 25,945 32,936 95,409 Deferred expense (benefit): Federal $ (131,890 ) $ 67,154 $ (71,446 ) Foreign 6,582 (14,783 ) 14,983 Total deferred tax (benefit) expense (125,308 ) 52,371 (56,463 ) Total income tax (benefit) expense $ (99,363 ) $ 85,307 $ 38,946 |
Reconciliation of Statutory Income Tax Rate to Effective Tax Rate | The following table is a reconciliation of the Company’s statutory income tax expense to its effective tax rate for the years ended December 31, 2017, 2016 and 2015 : Year Ended December 31, 2017 2016 2015 (Loss) income before income taxes and equity in earnings of unconsolidated subsidiaries $ (507,730 ) $ 500,051 $ 471,194 Tax at federal statutory rate of 35% (177,706 ) 175,018 164,918 Tax effects resulting from: Tax reform 72,534 — — Permanent adjustments 1,218 (5,091 ) (121,923 ) Foreign rate differential (27,120 ) (56,637 ) (98,059 ) Adjustments to prior year taxes (2,723 ) (17,504 ) (68,075 ) Valuation allowance 32,954 (12,874 ) 149,842 Other, net 1,480 2,395 12,243 Total income tax (benefit) expense $ (99,363 ) $ 85,307 $ 38,946 Effective tax rate 19.6 % 17.1 % 8.3 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities as of December 31, 2017 and 2016 are shown below: December 31, 2017 2016 Deferred tax assets: Net operating loss carryforward $ 280,271 $ 224,918 Unearned premiums 86,215 150,167 Ceding commission — 146,503 Loss and LAE reserves 48,575 73,873 Other 114,851 109,408 Deferred revenue 46,455 61,780 Bad debt 28,108 25,489 Deferred compensation 2,004 6,655 Total gross deferred tax assets 606,479 798,793 Valuation allowance (195,146 ) (142,462 ) Total deferred tax assets 411,333 656,331 Deferred tax liabilities: Deferred acquisition costs (145,600 ) (384,656 ) Equity results which cannot be liquidated tax free (11,838 ) (57,614 ) Intangible assets (67,008 ) (89,133 ) Depreciation (24,224 ) (49,411 ) Other (3,118 ) (3,489 ) Equalization reserves (13,307 ) (15,890 ) Accrual market discount (4,853 ) (10,144 ) Cash surrender value on insurance (1,563 ) (2,299 ) Unrealized gain on investments (22,978 ) (27,663 ) Total deferred tax liabilities (294,489 ) (640,299 ) Deferred tax asset, net $ 116,844 $ 16,032 |
Summary of Income Tax Examinations | Listed below are the tax years that remain subject to examination by major tax jurisdictions: Open Tax Years United States 2013-2016 United Kingdom 2016 Ireland 2012-2016 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Elements Used in Calculating Basic and Diluted Earnings Per Share | The following table is a summary of the elements used in calculating basic and diluted earnings per share for the years ended December 31, 2017, 2016 and 2015 : Year Ended December 31, 2017 2016 2015 Numerator: Net (loss) income attributable to AmTrust common stockholders $ (415,173 ) $ 363,139 $ 419,115 Less: Net income attributable to participating securities and redeemable non-controlling interest — — 314 Net (loss) income attributable to AmTrust common stockholders $ (415,173 ) $ 363,139 $ 418,801 Denominator: Weighted average common shares outstanding – basic 185,961 172,554 165,042 Plus: Dilutive effect of stock options, convertible debt, other (1) — 1,991 3,318 Weighted average common shares outstanding – dilutive 185,961 174,545 168,360 Net (loss) income per AmTrust common shares – basic $ (2.23 ) $ 2.10 $ 2.54 Net (loss) income per AmTrust common shares - diluted $ (2.23 ) $ 2.08 $ 2.49 (1) In accordance with ASC 260, Earnings Per Share , no potential common shares are included in the computation of diluted per share amounts as the effect would be antidilutive. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes accumulated other comprehensive income (loss) for the years ended December 31, 2017, 2016 and 2015 : Foreign Currency Items Unrealized Gains (Losses) on Investments Interest Rate Swap Hedge Net Benefit Plan Assets and Obligations Recognized in Stockholders' Equity Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2014 $ (8,822 ) $ 73,513 $ (1,321 ) $ (2,793 ) $ 60,577 Other comprehensive income (loss) before reclassification (89,252 ) (171,109 ) 955 4,132 (255,274 ) Amounts reclassed from accumulated other comprehensive income (loss) — 4,918 — — 4,918 Income tax benefit (expense) — 58,167 (334 ) (1,446 ) 56,387 Net current-period other comprehensive income (loss) (89,252 ) (108,024 ) 621 2,686 (193,969 ) Balance, December 31, 2015 (98,074 ) (34,511 ) (700 ) (107 ) (133,392 ) Other comprehensive income (loss) before reclassification (90,129 ) 177,395 835 (3,064 ) 85,037 Amounts reclassed from accumulated other comprehensive income — (30,715 ) — — (30,715 ) Income tax benefit (expense) — (46,339 ) (307 ) (6 ) (46,652 ) Net current-period other comprehensive income (loss) (90,129 ) 100,341 528 (3,070 ) 7,670 Balance, December 31, 2016 (188,203 ) 65,830 (172 ) (3,177 ) (125,722 ) Other comprehensive income (loss) before reclassification 143,386 70,796 202 1,570 215,954 Amounts reclassed from accumulated other comprehensive income — (62,841 ) — — (62,841 ) Income tax benefit (expense) — (11,173 ) (62 ) (640 ) (11,875 ) Net current-period other comprehensive income (loss) 143,386 (3,218 ) 140 930 141,238 Balance, December 31, 2017 $ (44,817 ) $ 62,612 $ (32 ) $ (2,247 ) $ 15,516 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments as of December 31, 2017 under non-cancellable operating leases for each of the next five years are approximately as follows: 2018 $ 26,237 2019 23,110 2020 21,100 2021 18,251 2022 14,931 2023 and Thereafter 21,780 Future minimum lease payments $ 125,409 |
Annual Future Minimum Payments as per Employee Agreements | Aggregate scheduled maturities of the Company’s outstanding debt as of December 31, 2017 are: 2018 $ 7,220 2019 161,595 (1) 2020 27,436 2021 16,507 (2) 2022 10,401 Thereafter 1,080,589 (2) Total scheduled payments 1,303,748 Unamortized deferred origination costs (15,027 ) Total debt $ 1,288,721 (1) Amount does not include scheduled maturities of notes payable on the collateral loan to Maiden of $167,975 in June 2019. See Note 15. "Related Party Transactions" for additional information. (2) Amount includes debt outstanding under the 2021 Notes and the 2044 Notes, which is net of unamortized original issue discount of $611 and $42,546 , respectively. The annual future minimum compensation payments in the aggregate through 2021 are as follows: 2018 $ 21,513 2019 9,247 2020 4,500 2021 945 Future minimum compensation payments $ 36,205 |
Statutory Financial Data, Ris64
Statutory Financial Data, Risk Based Capital and Dividend Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Statutory Accounting Practices Disclosure | The total statutory net income and statutory capital and surplus for the Company's twenty-four insurance subsidiaries domiciled in the U.S. are as follows: Year Ended December 31, 2017 2016 2015 Total statutory net income $ 61,554 $ 121,316 $ 105,500 December 31, 2017 2016 Total statutory capital and surplus $ 2,111,792 $ 2,026,019 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Results of Operations of Business Segments | The following tables summarize business segments as follows for the years ended December 31, 2017 , 2016 and 2015 : Year Ended December 31, 2017 Small Commercial Business Specialty Risk and Extended Warranty Specialty Program Corporate and Other Total Gross written premiums $ 4,342,627 $ 3,115,487 $ 976,516 $ — $ 8,434,630 Revenues: Net written premiums $ 2,305,817 $ 2,215,003 $ 631,696 $ — $ 5,152,516 Change in unearned premiums 843 (205,242 ) 107,981 — (96,418 ) Net earned premiums 2,306,660 2,009,761 739,677 — 5,056,098 Expenses: Loss and loss adjustment expenses 1,812,925 1,533,554 737,999 — 4,084,478 Acquisition costs and other underwriting expenses 719,793 662,101 240,613 — 1,622,507 Total expenses 2,532,718 2,195,655 978,612 — 5,706,985 Underwriting loss (226,058 ) (185,894 ) (238,935 ) — (650,887 ) Other income (loss): Service and fee income 127,607 372,937 5,791 105,870 612,205 Investment income and realized gain on investments 117,951 114,160 58,527 — 290,638 Other expenses (181,699 ) (130,354 ) (40,858 ) (352,911 ) (705,822 ) Interest expense (50,592 ) (36,296 ) (11,377 ) — (98,265 ) Foreign currency loss — (139,910 ) — — (139,910 ) Loss on life settlement contracts (1,258 ) (903 ) (283 ) — (2,444 ) Gain on sale of policy management system — — — 186,755 186,755 Benefit (provision) for income taxes 48,979 1,432 51,973 (3,021 ) 99,363 Equity in earnings of unconsolidated subsidiaries – related party — — — 73,488 73,488 Net (loss) income $ (165,070 ) $ (4,828 ) $ (175,162 ) $ 10,181 $ (334,879 ) Year Ended December 31, 2016 Small Commercial Business Specialty Risk and Extended Warranty Specialty Program Corporate and Other Total Gross written premiums $ 4,020,184 $ 2,521,324 $ 1,407,762 $ — $ 7,949,270 Revenues: Net written premiums $ 2,246,188 $ 1,722,139 $ 883,000 $ — $ 4,851,327 Change in unearned premiums (42,719 ) (178,240 ) 37,597 — (183,362 ) Net earned premiums 2,203,469 1,543,899 920,597 — 4,667,965 Expenses: Loss and loss adjustment expenses 1,460,503 1,023,470 658,306 — 3,142,279 Acquisition costs and other underwriting expenses 592,569 372,447 265,152 — 1,230,168 Total Expenses 2,053,072 1,395,917 923,458 — 4,372,447 Underwriting income 150,397 147,982 (2,861 ) — 295,518 Other income (loss): Service and fee income 103,776 331,528 3,666 98,996 537,966 Investment income and realized gain on investments 100,788 89,981 53,756 — 244,525 Other expenses (142,632 ) (89,454 ) (49,946 ) (282,033 ) (564,065 ) Interest expense (40,218 ) (25,224 ) (14,084 ) — (79,526 ) Foreign currency loss — (29,289 ) — — (29,289 ) Gain on life settlements 23,338 14,637 8,172 — 46,147 Acquisition gain on purchase 455 48,320 — — 48,775 (Provision) benefit for income taxes (32,407 ) (80,809 ) 215 27,694 (85,307 ) Equity in earnings of unconsolidated subsidiaries – related party — — — 15,626 15,626 Net income (loss) $ 163,497 $ 407,672 $ (1,082 ) $ (139,717 ) $ 430,370 Year Ended December 31, 2015 Small Commercial Business Specialty Risk and Extended Warranty Specialty Program Corporate and Other Total Gross written premiums $ 3,320,650 $ 2,158,921 $ 1,319,966 $ — $ 6,799,537 Revenues: Net written premiums $ 1,932,100 $ 1,450,817 $ 879,011 $ — $ 4,261,928 Change in unearned premiums (45,220 ) (145,781 ) (49,686 ) — (240,687 ) Net earned premiums 1,886,880 1,305,036 829,325 — 4,021,241 Expenses: Loss and loss adjustment expenses 1,234,089 882,306 571,723 — 2,688,118 Acquisition costs and other underwriting expenses 486,800 277,836 228,935 — 993,571 Total expenses 1,720,889 1,160,142 800,658 — 3,681,689 Underwriting income 165,991 144,894 28,667 — 339,552 Other income (loss): Service and fee income 101,302 242,302 2,023 82,516 428,143 Investment income and realized gain on investments 72,796 59,035 32,521 55 164,407 Other expenses (115,560 ) (75,131 ) (45,935 ) (236,627 ) (473,253 ) Interest expense (29,607 ) (19,250 ) (11,769 ) — (60,626 ) Foreign currency gain — 47,301 — — 47,301 Gain on investment in life settlement contracts 9,691 6,301 3,852 — 19,844 Acquisition gain on purchase 5,826 — — — 5,826 (Provision) benefit for income taxes (16,505 ) (31,798 ) (734 ) 10,091 (38,946 ) Equity in earnings of unconsolidated subsidiaries – related party — — — 25,385 25,385 Net income (loss) $ 193,934 $ 373,654 $ 8,625 $ (118,580 ) $ 457,633 The following tables summarize net earned premiums by major line of business, by segment, for the years ended December 31, 2017 , 2016 and 2015 : Small Commercial Business Specialty Risk and Extended Warranty Specialty Program Total Year Ended December 31, 2017: Workers' compensation $ 1,409,947 $ — $ 379,372 $ 1,789,319 Warranty — 970,673 33 970,706 Commercial auto and liability, physical damage 396,245 — 116,172 512,417 Other liabilities — 176,655 191,764 368,419 Medical malpractice — 206,622 — 206,622 Other 500,468 655,811 52,336 1,208,615 Total net earned premiums $ 2,306,660 $ 2,009,761 $ 739,677 $ 5,056,098 Year Ended December 31, 2016: Workers' compensation $ 1,421,744 $ — $ 530,276 $ 1,952,020 Warranty 10,614 748,946 61 759,621 Commercial auto and liability, physical damage 362,774 40,388 130,409 533,571 Other liabilities 22,273 140,256 168,162 330,691 Medical malpractice — 233,136 — 233,136 Other 386,064 381,173 91,689 858,926 Total net earned premiums $ 2,203,469 $ 1,543,899 $ 920,597 $ 4,667,965 Year Ended December 31, 2015: Workers' compensation $ 1,278,509 $ — $ 337,279 $ 1,615,788 Warranty — 623,432 — 623,432 Commercial auto and liability, physical damage 282,593 17,248 141,075 440,916 Other liabilities 50,578 139,463 196,379 386,420 Medical malpractice — 161,767 — 161,767 Other 275,200 363,126 154,592 792,918 Total net earned premiums $ 1,886,880 $ 1,305,036 $ 829,325 $ 4,021,241 The following tables summarize total assets and long lived assets, by segment, as of December 31, 2017 and 2016 : Small Commercial Business Specialty Risk and Extended Warranty Specialty Program Total As of December 31, 2017: Property, equipment and software, net $ 235,581 $ 169,010 $ 52,974 $ 457,565 Less: Assets classified as held for sale (See Note 27) (4,187 ) Total property, equipment and software, net 453,378 Goodwill and intangible assets 409,043 814,845 70,001 1,293,889 Less: Assets classified as held for sale (See Note 27) (360,174 ) Total goodwill and intangible assets 933,715 Total assets 11,133,847 10,011,169 4,073,614 25,218,630 As of December 31, 2016: Property, equipment and software, net $ 158,967 $ 99,699 $ 55,666 $ 314,332 Goodwill and intangible assets 401,889 767,196 74,040 1,243,125 Total assets 9,949,105 8,530,559 4,135,004 22,614,668 The following table summarizes the Company’s operations by major geographic location: Domestic International Total December 31, 2017: Total revenues $ 3,563,436 2,395,505 5,958,941 Property, equipment and software, net 245,270 212,295 457,565 Less: Assets classified as held for sale (See Note 27) (4,187 ) Total property, equipment and software, net 453,378 December 31, 2016: Total revenues $ 2,756,745 2,693,711 5,450,456 Property, equipment and software, net 260,513 53,819 314,332 December 31, 2015: Total revenues $ 1,937,501 2,676,290 4,613,791 Property, equipment and software, net 224,795 32,333 257,128 |
Quarterly Financial Data (Una66
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Summary of Quarterly Financial Information | The following is a summary of the unaudited quarterly results of operations: Three Months Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Net earned premiums $ 1,222,532 $ 1,380,709 $ 1,192,877 $ 1,259,980 Net investment income 63,325 49,226 61,103 53,849 Service and fee income 137,496 168,446 180,505 125,758 Total revenues 1,431,968 1,621,836 1,459,005 1,446,132 Loss and loss adjustment expenses 840,334 1,024,478 1,266,118 953,548 Acquisition costs and other underwriting expenses 328,215 373,195 337,086 584,011 Other 162,853 199,860 177,350 165,759 Interest expense 23,601 24,229 22,873 27,562 Provision (benefit) for income taxes 21,356 (19,727 ) (62,588 ) (38,404 ) Net income (loss) 50,208 29,123 (158,822 ) (255,388 ) Income (loss) attributable to Common Stockholders 22,632 5,829 (174,675 ) (268,959 ) Basic EPS $ 0.13 $ 0.03 $ (0.89 ) $ (1.50 ) Diluted EPS $ 0.13 $ 0.03 $ (0.89 ) $ (1.50 ) Three Months Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Net earned premiums $ 1,074,282 $ 1,181,752 $ 1,196,236 $ 1,215,695 Net investment income 49,415 50,745 59,919 47,968 Service and fee income 128,805 124,305 133,857 150,999 Total revenues 1,260,477 1,371,901 1,398,242 1,419,836 Loss and loss adjustment expenses 715,073 784,393 811,048 831,765 Acquisition costs and other underwriting expenses 272,468 294,476 303,992 359,232 Other 129,267 134,344 139,251 161,203 Interest expense 15,874 17,912 22,124 23,616 Provision for income taxes 18,960 23,807 23,185 19,355 Net income 96,786 144,549 95,201 93,834 Income attributable to Common Stockholders 83,978 127,156 80,650 71,355 Basic EPS $ 0.48 $ 0.73 $ 0.47 $ 0.42 Diluted EPS $ 0.47 $ 0.73 $ 0.47 $ 0.41 |
Divestitures (Tables)
Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Classes of Assets and Liabilities to be Sold and Classified as Held for Sale | The classes of assets and liabilities to be sold and classified as held for sale consisted of the following: December 31, 2017 Fixed maturity securities, available for sale $ 35,233 Other investments 230 Cash and cash equivalents 56,062 Restricted cash and cash equivalents 33,802 Accrued interest and dividends 326 Premiums receivable, net 33,933 Deferred policy acquisition costs 211,521 Property, equipment and software, net 4,187 Goodwill 188,315 Intangible assets 171,859 Other assets 165,435 Total assets held for sale $ 900,903 Funds held under reinsurance treaties $ 1,294 Accrued expenses and other liabilities 760,385 Total liabilities held for sale $ 761,679 |
Nature of Operations (Details)
Nature of Operations (Details) | Dec. 31, 2017subsidiary |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of subsidiaries | 24 |
Number of foreign subsidiaries | 7 |
Significant Accounting Polici69
Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)unit | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Change in Accounting Estimate [Line Items] | |||
Number of Reporting Units | unit | 6 | ||
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | $ 16,000 | ||
Allowance for doubtful accounts | 107,074 | $ 72,867 | |
Assessment expenses | $ 22,189 | $ 36,144 | $ 25,866 |
Minimum | |||
Change in Accounting Estimate [Line Items] | |||
Investment maturity (duration) | 91 days | ||
Maximum | |||
Change in Accounting Estimate [Line Items] | |||
Investment maturity (duration) | 1 year | ||
Building | |||
Change in Accounting Estimate [Line Items] | |||
Useful life (in years) | 40 years | ||
Equipment | Minimum | |||
Change in Accounting Estimate [Line Items] | |||
Useful life (in years) | 5 years | ||
Equipment | Maximum | |||
Change in Accounting Estimate [Line Items] | |||
Useful life (in years) | 7 years | ||
Computer equipment | Minimum | |||
Change in Accounting Estimate [Line Items] | |||
Useful life (in years) | 3 years | ||
Computer equipment | Maximum | |||
Change in Accounting Estimate [Line Items] | |||
Useful life (in years) | 20 years | ||
Leasehold improvements | |||
Change in Accounting Estimate [Line Items] | |||
Useful life (in years) | 15 years | ||
5.5% Convertible senior notes due 2021 (the 2021 Notes) | Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate (percentage) | 5.50% | 5.50% | 5.50% |
Investments (Amortized Cost, Es
Investments (Amortized Cost, Estimated Market Value and Gross Unrealized Appreciation and Depreciation of Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed maturity securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | $ 7,408,735 | $ 7,315,041 |
Gross Unrealized Gains | 154,885 | 145,482 |
Gross Unrealized Losses | (75,330) | (62,389) |
Fair Value | 7,488,290 | 7,398,134 |
U.S. treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 301,596 | 331,036 |
Gross Unrealized Gains | 852 | 1,235 |
Gross Unrealized Losses | (3,203) | (1,617) |
Fair Value | 299,245 | 330,654 |
U.S. government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 51,111 | 63,467 |
Gross Unrealized Gains | 7 | 282 |
Gross Unrealized Losses | (593) | (17) |
Fair Value | 50,525 | 63,732 |
Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 1,035,552 | 860,444 |
Gross Unrealized Gains | 15,853 | 9,603 |
Gross Unrealized Losses | (5,878) | (15,877) |
Fair Value | 1,045,527 | 854,170 |
Foreign government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 151,376 | 149,365 |
Gross Unrealized Gains | 3,549 | 4,237 |
Gross Unrealized Losses | (3,191) | (726) |
Fair Value | 151,734 | 152,876 |
Commercial mortgage backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 419,279 | 178,092 |
Gross Unrealized Gains | 3,811 | 2,464 |
Gross Unrealized Losses | (10,358) | (2,562) |
Fair Value | 412,732 | 177,994 |
Collateralized loan / debt obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 591,198 | 476,767 |
Gross Unrealized Gains | 9,666 | 8,389 |
Gross Unrealized Losses | (333) | (751) |
Fair Value | 600,531 | 484,405 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 30,080 | 29,939 |
Gross Unrealized Gains | 72 | 31 |
Gross Unrealized Losses | (117) | (260) |
Fair Value | 30,035 | 29,710 |
Equity securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 93,580 | 126,670 |
Gross Unrealized Gains | 24,099 | 12,899 |
Gross Unrealized Losses | (2,984) | (2,407) |
Fair Value | 114,695 | 137,162 |
Preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 499 | 4,044 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (22) | (59) |
Fair Value | 477 | 3,985 |
Common stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 93,081 | 122,626 |
Gross Unrealized Gains | 24,099 | 12,899 |
Gross Unrealized Losses | (2,962) | (2,348) |
Fair Value | 114,218 | 133,177 |
Corporate bonds | Finance | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 1,733,245 | 1,535,606 |
Gross Unrealized Gains | 48,060 | 38,404 |
Gross Unrealized Losses | (11,894) | (7,722) |
Fair Value | 1,769,411 | 1,566,288 |
Corporate bonds | Industrial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 2,236,966 | 2,222,843 |
Gross Unrealized Gains | 57,253 | 62,133 |
Gross Unrealized Losses | (26,064) | (17,115) |
Fair Value | 2,268,155 | 2,267,861 |
Corporate bonds | Utilities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 323,782 | 195,607 |
Gross Unrealized Gains | 10,886 | 4,433 |
Gross Unrealized Losses | (2,246) | (1,210) |
Fair Value | 332,422 | 198,830 |
Residential Mortgage Backed Securities | Agency backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 562,043 | 1,210,229 |
Gross Unrealized Gains | 5,779 | 13,685 |
Gross Unrealized Losses | (11,393) | (13,529) |
Fair Value | 556,429 | 1,210,385 |
Residential Mortgage Backed Securities | Non-agency backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 6,870 | 61,646 |
Gross Unrealized Gains | 7 | 586 |
Gross Unrealized Losses | (100) | (1,003) |
Fair Value | 6,777 | $ 61,229 |
US Based Fee Businesses | Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or Amortized Cost | 34,363 | |
Gross Unrealized Gains | 910 | |
Gross Unrealized Losses | (40) | |
Fair Value | $ 35,233 |
Investments (Summary of Availab
Investments (Summary of Available for Sale Fixed Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total fixed maturities | $ 7,408,735 | $ 7,315,041 |
Total fixed maturities | 7,488,290 | 7,398,134 |
Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less | 228,107 | 319,275 |
Due after one through five years | 1,811,295 | 2,956,429 |
Due after five through ten years | 3,199,736 | 1,645,211 |
Due after ten years | 594,489 | 437,452 |
Mortgage and asset backed securities | 1,609,471 | 1,956,674 |
Total fixed maturities | 7,408,735 | 7,315,041 |
Due in one year or less | 226,651 | 319,882 |
Due after one through five years | 1,845,531 | 2,998,711 |
Due after five through ten years | 3,239,839 | 1,683,112 |
Due after ten years | 604,997 | 432,702 |
Mortgage and asset backed securities | 1,606,505 | 1,963,727 |
Total fixed maturities | 7,488,290 | 7,398,134 |
US Based Fee Businesses | Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less: Assets classified as held for sale (See Note 27) | (34,363) | 0 |
Less: Assets classified as held for sale (See Note 27) | $ (35,233) | $ 0 |
Investments (Other Than Tempora
Investments (Other Than Temporary Investment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Other-than-temporary impairment charges | $ 0 | $ 31,659 | $ 19,155 |
Equity securities: | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Other-than-temporary impairment charges | 21,028 | 1,276 | |
Fixed maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Other-than-temporary impairment charges | 4,191 | 17,879 | |
Other invested assets | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Other-than-temporary impairment charges | $ 6,440 | $ 0 |
Investments (OTTI, credit losse
Investments (OTTI, credit losses recognized in earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Credit losses as of the beginning of the year | $ 13,367 | $ 21,521 | $ 8,039 |
Credit losses on securities for which an OTTI was not previously recognized | 0 | 31,659 | 19,155 |
Reductions for securities sold, matured, or called | (10,697) | (39,813) | (5,673) |
Credit losses as of the end of the year | $ 2,670 | $ 13,367 | $ 21,521 |
Investments (Summary of Gross U
Investments (Summary of Gross Unrealized Losses of Fixed-maturities and Equity Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses, 12 Months or More | $ (32,247) | |
Fixed maturity securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 1,488,334 | $ 4,262,454 |
Unrealized Losses, Less than 12 Months | (43,125) | (55,355) |
Fair Market Value, 12 Months or More | 1,135,622 | 254,035 |
Unrealized Losses, 12 Months or More | (32,245) | (7,034) |
Total Fair Market Value | 2,623,956 | 4,516,489 |
Total Unrealized Losses | (75,370) | (62,389) |
U.S. treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 41,931 | 293,155 |
Unrealized Losses, Less than 12 Months | (543) | (1,613) |
Fair Market Value, 12 Months or More | 247,035 | 22,989 |
Unrealized Losses, 12 Months or More | (2,660) | (4) |
Total Fair Market Value | 288,966 | 316,144 |
Total Unrealized Losses | (3,203) | (1,617) |
U.S. government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 48,744 | 7,866 |
Unrealized Losses, Less than 12 Months | (579) | (17) |
Fair Market Value, 12 Months or More | 469 | 0 |
Unrealized Losses, 12 Months or More | (14) | 0 |
Total Fair Market Value | 49,213 | 7,866 |
Total Unrealized Losses | (593) | (17) |
Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 171,328 | 519,578 |
Unrealized Losses, Less than 12 Months | (2,675) | (15,207) |
Fair Market Value, 12 Months or More | 178,738 | 15,742 |
Unrealized Losses, 12 Months or More | (3,203) | (670) |
Total Fair Market Value | 350,066 | 535,320 |
Total Unrealized Losses | (5,878) | (15,877) |
Foreign government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 57,399 | 128,863 |
Unrealized Losses, Less than 12 Months | (2,174) | (688) |
Fair Market Value, 12 Months or More | 17,093 | 12,659 |
Unrealized Losses, 12 Months or More | (1,017) | (38) |
Total Fair Market Value | 74,492 | 141,522 |
Total Unrealized Losses | (3,191) | (726) |
Finance | Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 419,332 | 1,071,982 |
Unrealized Losses, Less than 12 Months | (9,669) | (7,210) |
Fair Market Value, 12 Months or More | 91,515 | 16,840 |
Unrealized Losses, 12 Months or More | (2,225) | (512) |
Total Fair Market Value | 510,847 | 1,088,822 |
Total Unrealized Losses | (11,894) | (7,722) |
Industrial | Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 437,126 | 1,200,129 |
Unrealized Losses, Less than 12 Months | (16,372) | (13,648) |
Fair Market Value, 12 Months or More | 255,384 | 114,035 |
Unrealized Losses, 12 Months or More | (9,692) | (3,467) |
Total Fair Market Value | 692,510 | 1,314,164 |
Total Unrealized Losses | (26,064) | (17,115) |
Utilities | Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 72,518 | 119,488 |
Unrealized Losses, Less than 12 Months | (2,104) | (423) |
Fair Market Value, 12 Months or More | 11,949 | 10,391 |
Unrealized Losses, 12 Months or More | (142) | (787) |
Total Fair Market Value | 84,467 | 129,879 |
Total Unrealized Losses | (2,246) | (1,210) |
Commercial mortgage backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 81,498 | 71,780 |
Unrealized Losses, Less than 12 Months | (4,033) | (1,654) |
Fair Market Value, 12 Months or More | 157,458 | 10,910 |
Unrealized Losses, 12 Months or More | (6,325) | (908) |
Total Fair Market Value | 238,956 | 82,690 |
Total Unrealized Losses | (10,358) | (2,562) |
Agency backed | Residential Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 91,699 | 718,098 |
Unrealized Losses, Less than 12 Months | (4,655) | (13,469) |
Fair Market Value, 12 Months or More | 167,757 | 8,144 |
Unrealized Losses, 12 Months or More | (6,738) | (60) |
Total Fair Market Value | 259,456 | 726,242 |
Total Unrealized Losses | (11,393) | (13,529) |
Non-agency backed | Residential Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 2,904 | 24,372 |
Unrealized Losses, Less than 12 Months | (33) | (869) |
Fair Market Value, 12 Months or More | 812 | 4,462 |
Unrealized Losses, 12 Months or More | (67) | (134) |
Total Fair Market Value | 3,716 | 28,834 |
Total Unrealized Losses | (100) | (1,003) |
Collateralized loan / debt obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 56,754 | 97,923 |
Unrealized Losses, Less than 12 Months | (266) | (433) |
Fair Market Value, 12 Months or More | 4,274 | 32,937 |
Unrealized Losses, 12 Months or More | (67) | (318) |
Total Fair Market Value | 61,028 | 130,860 |
Total Unrealized Losses | (333) | (751) |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 7,101 | 9,220 |
Unrealized Losses, Less than 12 Months | (22) | (124) |
Fair Market Value, 12 Months or More | 3,138 | 4,926 |
Unrealized Losses, 12 Months or More | (95) | (136) |
Total Fair Market Value | 10,239 | 14,146 |
Total Unrealized Losses | (117) | (260) |
Equity securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 17,004 | 46,783 |
Unrealized Losses, Less than 12 Months | (2,982) | (1,424) |
Fair Market Value, 12 Months or More | 119 | 9,991 |
Unrealized Losses, 12 Months or More | (2) | (983) |
Total Fair Market Value | 17,123 | 56,774 |
Total Unrealized Losses | (2,984) | (2,407) |
Preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 477 | 529 |
Unrealized Losses, Less than 12 Months | (22) | (30) |
Fair Market Value, 12 Months or More | 0 | 0 |
Unrealized Losses, 12 Months or More | 0 | (29) |
Total Fair Market Value | 477 | 529 |
Total Unrealized Losses | (22) | (59) |
Common stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 16,527 | 46,254 |
Unrealized Losses, Less than 12 Months | (2,960) | (1,394) |
Fair Market Value, 12 Months or More | 119 | 9,991 |
Unrealized Losses, 12 Months or More | (2) | (954) |
Total Fair Market Value | 16,646 | 56,245 |
Total Unrealized Losses | $ (2,962) | $ (2,348) |
Investments (Unrealized Gain an
Investments (Unrealized Gain and Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Total net unrealized gains (losses) | $ 100,670 | $ 93,585 | $ (53,094) |
Deferred income tax (expense) benefit | (22,978) | (27,756) | 18,583 |
Cumulative net unrealized gains (losses), net of tax | 77,692 | 65,829 | (34,511) |
Increase (decrease) in net unrealized gains, net of deferred income tax | 11,863 | 100,340 | (108,024) |
Fixed maturity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total net unrealized gains (losses) | 79,555 | 83,093 | (48,245) |
Equity securities: | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total net unrealized gains (losses) | $ 21,115 | $ 10,492 | $ (4,849) |
Investments (Trading Securities
Investments (Trading Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Original or Amortized Cost | $ 102,342 | $ 76,163 | |
Fair Value | 97,036 | 81,960 | |
Net (losses) and gains recognized during the period on trading securities | (15,157) | 14,896 | $ 10,037 |
Less: Net (losses) and gains recognized during the period on trading securities sold during the period | 6,517 | 9,869 | 5,448 |
Unrealized (losses) and gains recognized during the reporting period on trading securities still held at the reporting date | (8,640) | 24,765 | $ 15,485 |
Fixed maturity securities: | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Original or Amortized Cost | 52,171 | 29,081 | |
Gross Unrealized Gains | 141 | 4,701 | |
Gross Unrealized Losses | (2,491) | 0 | |
Fair Value | 49,821 | 33,782 | |
U.S. treasury securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Original or Amortized Cost | 24,954 | ||
Gross Unrealized Gains | 16 | ||
Gross Unrealized Losses | (102) | ||
Fair Value | 24,868 | ||
Common stock | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Original or Amortized Cost | 102,342 | 76,163 | |
Gross Unrealized Gains | 6,492 | 9,842 | |
Gross Unrealized Losses | (11,798) | (4,045) | |
Fair Value | 97,036 | 81,960 | |
Industrial | Corporate bonds | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Original or Amortized Cost | 26,717 | 24,151 | |
Gross Unrealized Gains | 124 | 4,379 | |
Gross Unrealized Losses | (2,389) | 0 | |
Fair Value | 24,452 | 28,530 | |
Finance | Corporate bonds | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Original or Amortized Cost | 500 | ||
Gross Unrealized Gains | 1 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | $ 501 | ||
Utilities | Corporate bonds | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Original or Amortized Cost | 4,930 | ||
Gross Unrealized Gains | 322 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | $ 5,252 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | $ 237,116 | $ 213,547 | $ 158,183 | ||||||||
Less: Investment expenses and interest expense on securities sold under agreement to repurchase | (9,613) | (5,500) | (1,893) | ||||||||
Net investment income | $ 53,849 | $ 61,103 | $ 49,226 | $ 63,325 | $ 47,968 | $ 59,919 | $ 50,745 | $ 49,415 | 227,503 | 208,047 | 156,290 |
Fixed maturities | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | 245,281 | 203,998 | 152,663 | ||||||||
Equity securities: | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | 2,287 | 2,795 | 2,784 | ||||||||
Cash and cash equivalents | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | 8,447 | 6,732 | 3,718 | ||||||||
Other invested assets | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | 0 | 0 | |||||||||
Gross Investment Expense, Operating | (20,679) | ||||||||||
Fixed maturity securities: | Trading Securities | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | 1,935 | 0 | 0 | ||||||||
Trading Securities | Trading Securities | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | $ 22 | ||||||||||
Gross Investment Expense, Operating | $ (155) | $ (982) |
Investments (Summary of Realize
Investments (Summary of Realized Gain and Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Gains | $ 112,134 | $ 112,518 | |
Net Gain and Losses | 62,841 | 52,353 | $ 15,578 |
Write-down | 0 | (31,659) | (19,155) |
Total of gross loss and write-downs | 48,999 | 76,040 | |
Net gain and losses, including write-down | 63,135 | 36,478 | |
Fixed maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Write-down | (4,191) | (17,879) | |
Equity securities: | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Write-down | (21,028) | (1,276) | |
Other invested assets | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Gains | 1,657 | ||
Gross Losses | 0 | ||
Net Gain and Losses | 1,657 | ||
Write-down | (6,440) | 0 | |
Available-for-sale Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Gains | 43,650 | ||
Total of gross loss and write-downs | 35,533 | ||
Net gain and losses, including write-down | 8,117 | ||
Available-for-sale Securities | Fixed maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Gains | 48,066 | 71,291 | 17,828 |
Gross Losses | (6,530) | (11,819) | (1,516) |
Net Gain and Losses | 41,536 | 59,472 | 16,312 |
Write-down | (4,191) | ||
Available-for-sale Securities | Equity securities: | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Gains | 23,817 | 6,578 | 1,563 |
Gross Losses | (2,512) | (13,697) | (2,297) |
Net Gain and Losses | 21,305 | (7,119) | (734) |
Write-down | (21,028) | (17,879) | |
Trading Securities | Fixed maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Gains | 5,417 | 11,918 | |
Gross Losses | (7,942) | (1,184) | |
Net Gain and Losses | (2,525) | 10,734 | |
Trading Securities | Equity securities: | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Gains | 17,064 | 21,843 | 22,602 |
Gross Losses | (29,696) | (17,681) | (12,565) |
Net Gain and Losses | (12,632) | 4,162 | 10,037 |
Write-down | $ (1,276) | ||
Other invested assets | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Gains | 17,770 | 888 | |
Gross Losses | (2,319) | 0 | |
Net Gain and Losses | $ 15,451 | 888 | |
Other invested assets | Fixed maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Write-down | $ (6,440) |
Investments (Fair Values of Res
Investments (Fair Values of Restricted Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Restricted cash and cash equivalents | $ 480,118 | $ 713,338 |
Restricted investments | 3,193,838 | 2,126,216 |
Total restricted cash and investments | $ 3,673,956 | $ 2,839,554 |
Investments (Additional Informa
Investments (Additional Information) (Details) $ / shares in Units, $ in Thousands | Jun. 09, 2017USD ($)$ / sharesshares | Jun. 30, 2017shares | Dec. 31, 2017USD ($)agreementInvestment | Dec. 31, 2016USD ($)agreementInvestment | Dec. 31, 2015USD ($) |
Investment [Line Items] | |||||
Proceeds from the sale of investments in available-for-sale securities | $ 2,759,085 | $ 1,597,357 | $ 1,274,502 | ||
Number of securities account for gross unrealized loss | Investment | 2,113 | 2,125 | |||
Unrealized Losses, 12 Months or More | $ 32,247 | ||||
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate loss, greater or equal to 20% of amortized costs | 0 | ||||
Proceeds from sale of investment in trading securities | 449,241 | $ 237,834 | 207,992 | ||
Net realized gains on investments | 63,135 | 36,478 | $ 8,117 | ||
Securities sold but not yet purchased, at fair value | $ 75,462 | $ 36,394 | |||
Number of repurchase agreements | agreement | 0 | 13 | |||
Financial instruments sold, not yet purchased, fair value | $ 160,270 | ||||
Held-to-maturity securities pledged as collateral | 175,700 | ||||
Financial instruments sold, not yet purchased, interest expense | 1,715 | $ 554 | |||
Equity securities: | |||||
Investment [Line Items] | |||||
Securities sold but not yet purchased, at fair value | $ 75,462 | $ 36,394 | |||
Minimum | |||||
Investment [Line Items] | |||||
Financial instruments sold, not yet purchased, stated interest rate (in percentage) | 0.75% | ||||
Maximum | |||||
Investment [Line Items] | |||||
Financial instruments sold, not yet purchased, stated interest rate (in percentage) | 0.90% | ||||
NGHC | |||||
Investment [Line Items] | |||||
Sale of stock, number of shares issued in transaction | shares | 10,586,000 | 10,586,000 | |||
Sale of stock, price per share (usd per share) | $ / shares | $ 20 | ||||
Sale of stock, price per share, discount (in percentage) | 8.30% | ||||
Net realized gains on investments | $ 68,425 |
Fair Value of Financial Instr81
Fair Value of Financial Instruments (Financial Assets and Financial Liabilities on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Life settlement contracts | $ 20,808 | $ 356,856 |
Less: Fixed maturity securities classified as held for sale (see Note 27) | (35,233) | |
Total financial assets | 7,963,443 | 8,007,894 |
Total financial liabilities | 153,998 | 273,504 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Life settlement contracts | 0 | 0 |
Less: Fixed maturity securities classified as held for sale (see Note 27) | 0 | |
Total financial assets | 534,879 | 475,709 |
Total financial liabilities | 70,724 | 36,394 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Life settlement contracts | 0 | 0 |
Less: Fixed maturity securities classified as held for sale (see Note 27) | (35,233) | |
Total financial assets | 7,378,158 | 7,104,005 |
Total financial liabilities | 4,738 | 160,513 |
Level 2 | Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 900,903 | |
Total financial liabilities | 761,679 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Life settlement contracts | 20,808 | 356,856 |
Less: Fixed maturity securities classified as held for sale (see Note 27) | 0 | |
Total financial assets | 50,406 | 428,180 |
Total financial liabilities | 78,536 | 76,597 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 324,113 | 330,654 |
U.S. treasury securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 324,113 | 330,654 |
U.S. treasury securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 0 |
U.S. treasury securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 0 |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 50,525 | 63,732 |
U.S. government agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 0 |
U.S. government agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 50,525 | 63,732 |
U.S. government agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 0 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 1,045,527 | 854,170 |
Municipal bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 0 |
Municipal bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 1,045,100 | 854,170 |
Municipal bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 427 | 0 |
Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 151,734 | 152,876 |
Foreign government | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 0 |
Foreign government | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 151,734 | 149,298 |
Foreign government | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 3,578 |
Commercial mortgage backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 412,732 | 177,994 |
Commercial mortgage backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 0 |
Commercial mortgage backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 389,831 | 177,994 |
Commercial mortgage backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 22,901 | 0 |
Agency backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 556,429 | 1,210,385 |
Agency backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 0 |
Agency backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 556,429 | 1,186,315 |
Agency backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 24,070 |
Non-agency backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 6,777 | 61,229 |
Non-agency backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 0 |
Non-agency backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 6,777 | 58,109 |
Non-agency backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 3,120 |
Collateralized loan / debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 600,531 | 484,405 |
Collateralized loan / debt obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 0 |
Collateralized loan / debt obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 600,531 | 484,405 |
Collateralized loan / debt obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 0 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 30,035 | 29,710 |
Asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 0 |
Asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 29,242 | 29,710 |
Asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 793 | 0 |
Short-term investments, at cost (approximates fair value) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 187,793 | |
Short-term investments, at cost (approximates fair value) | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | |
Short-term investments, at cost (approximates fair value) | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 187,793 | |
Short-term investments, at cost (approximates fair value) | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | |
Other investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 5,000 | |
Other investments: | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | |
Other investments: | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | |
Other investments: | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 5,000 | |
Corporate bonds | Finance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 1,769,912 | 1,566,288 |
Corporate bonds | Finance | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 0 |
Corporate bonds | Finance | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 1,769,912 | 1,559,800 |
Corporate bonds | Finance | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 6,488 |
Corporate bonds | Industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 2,292,607 | 2,296,391 |
Corporate bonds | Industrial | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 0 |
Corporate bonds | Industrial | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 2,292,607 | 2,291,351 |
Corporate bonds | Industrial | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 5,040 |
Corporate bonds | Corporate bonds: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 332,422 | 204,082 |
Corporate bonds | Corporate bonds: | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 0 |
Corporate bonds | Corporate bonds: | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 332,422 | 199,503 |
Corporate bonds | Corporate bonds: | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 0 | 4,579 |
Securities sold but not yet purchased, market | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 36,394 | |
Securities sold but not yet purchased, market | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 36,394 | |
Securities sold but not yet purchased, market | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 0 | |
Securities sold but not yet purchased, market | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 0 | |
Securities sold but not yet purchased, market | Equity securities: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 75,462 | |
Securities sold but not yet purchased, market | Equity securities: | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 70,724 | |
Securities sold but not yet purchased, market | Equity securities: | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 4,738 | |
Securities sold but not yet purchased, market | Equity securities: | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 0 | |
Securities sold but not yet purchased, market | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 160,270 | |
Securities sold but not yet purchased, market | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 0 | |
Securities sold but not yet purchased, market | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 160,270 | |
Securities sold but not yet purchased, market | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 0 | |
Life settlement contract profit commission | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 3,169 | 4,940 |
Life settlement contract profit commission | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 0 | 0 |
Life settlement contract profit commission | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 0 | 0 |
Life settlement contract profit commission | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 3,169 | 4,940 |
Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 75,367 | 71,657 |
Contingent consideration | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 0 | 0 |
Contingent consideration | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 0 | 0 |
Contingent consideration | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 75,367 | 71,657 |
Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 243 | |
Derivatives | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 0 | |
Derivatives | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 243 | |
Derivatives | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 0 | |
Available-for-sale Securities | Equity securities: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 114,695 | 137,162 |
Available-for-sale Securities | Equity securities: | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 114,211 | 66,228 |
Available-for-sale Securities | Equity securities: | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 7 | 49,618 |
Available-for-sale Securities | Equity securities: | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 477 | 21,316 |
Trading Securities | Equity securities: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 97,036 | 81,960 |
Trading Securities | Equity securities: | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 96,555 | 78,827 |
Trading Securities | Equity securities: | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 481 | 0 |
Trading Securities | Equity securities: | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | $ 0 | $ 3,133 |
Fair Value of Financial Instr82
Fair Value of Financial Instruments (Changes in Fair Value of Level 3 Financial Assets And Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | $ 351,584 | $ 201,046 |
Net income (loss) | 71,662 | 80,578 |
Other comprehensive income (loss) | (1,199) | 6,732 |
Purchases and issuances | 6,609 | 17,621 |
Sales and settlements | (447,294) | (8,471) |
Net transfers into (out of) Level 3 | (9,492) | 54,078 |
Ending Balance | (28,130) | 351,584 |
Trading Securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | 3,133 | 0 |
Net income (loss) | (400) | 0 |
Other comprehensive income (loss) | 0 | 1,394 |
Purchases and issuances | 4,484 | 1,739 |
Sales and settlements | (3,834) | 0 |
Net transfers into (out of) Level 3 | (3,383) | 0 |
Ending Balance | 0 | 3,133 |
Equity securities: | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | 21,316 | 37,211 |
Net income (loss) | 566 | (25,484) |
Other comprehensive income (loss) | (186) | 5,042 |
Purchases and issuances | 613 | 511 |
Sales and settlements | (38,198) | (16,364) |
Net transfers into (out of) Level 3 | 16,366 | 20,400 |
Ending Balance | 477 | 21,316 |
Other investments: | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | 0 | |
Net income (loss) | 0 | |
Other comprehensive income (loss) | 0 | |
Purchases and issuances | 5,000 | |
Sales and settlements | 0 | |
Net transfers into (out of) Level 3 | 0 | |
Ending Balance | 5,000 | 0 |
Life settlement contracts | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | 356,856 | 264,001 |
Net income (loss) | 59,821 | 123,872 |
Other comprehensive income (loss) | 0 | 0 |
Purchases and issuances | 16,473 | 17,230 |
Sales and settlements | (412,342) | (48,247) |
Net transfers into (out of) Level 3 | 0 | 0 |
Ending Balance | 20,808 | 356,856 |
Life settlement contract profit commission | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | (4,940) | (15,406) |
Net income (loss) | 1,771 | (9,940) |
Other comprehensive income (loss) | 0 | 0 |
Purchases and issuances | 0 | 0 |
Sales and settlements | 0 | 20,406 |
Net transfers into (out of) Level 3 | 0 | 0 |
Ending Balance | (3,169) | (4,940) |
Contingent consideration | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | (71,656) | (84,760) |
Net income (loss) | 7,585 | (7,870) |
Other comprehensive income (loss) | 0 | 0 |
Purchases and issuances | (29,420) | (14,760) |
Sales and settlements | 18,124 | 35,734 |
Net transfers into (out of) Level 3 | 0 | 0 |
Ending Balance | (75,367) | (71,656) |
Available-for-sale Securities | Fixed maturities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | 46,875 | 0 |
Net income (loss) | 327 | 0 |
Other comprehensive income (loss) | (1,013) | 296 |
Purchases and issuances | 9,459 | 12,901 |
Sales and settlements | (8,740) | 0 |
Net transfers into (out of) Level 3 | (22,787) | 33,678 |
Ending Balance | 24,121 | 46,875 |
Trading Securities | Fixed maturities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | 0 | |
Net income (loss) | 1,992 | |
Other comprehensive income (loss) | 0 | |
Purchases and issuances | 0 | |
Sales and settlements | (2,304) | |
Net transfers into (out of) Level 3 | 312 | |
Ending Balance | $ 0 | $ 0 |
Fair Value of Financial Instr83
Fair Value of Financial Instruments (Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net income (loss) | $ 71,662 | $ 80,578 | |
(Loss) gain on investment in life settlement contracts net of profit commission | (2,444) | 46,147 | $ 19,844 |
Life settlement contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net income (loss) | 59,821 | 123,872 | |
Premium paid | (59,576) | (65,098) | |
Other expenses | (4,460) | (2,687) | |
(Loss) gain on investment in life settlement contracts net of profit commission | (2,444) | 46,147 | |
Life settlement contract profit commission | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net income (loss) | $ 1,771 | $ (9,940) |
Fair Value of Financial Instr84
Fair Value of Financial Instruments (Fair Value of Debt) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Carrying Value | |
Liabilities, Fair Value Disclosure [Abstract] | |
Revolving credit facility | $ 130,000 |
Senior notes | 248,458 |
Secured loan agreements | 174,414 |
Promissory notes | 66,504 |
Total debt | 1,288,721 |
Carrying Value | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | |
Liabilities, Fair Value Disclosure [Abstract] | |
Convertible senior notes | 5,363 |
Carrying Value | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | |
Liabilities, Fair Value Disclosure [Abstract] | |
Convertible senior notes | 172,958 |
Carrying Value | Junior subordinated debentures (the 2035-2037 Notes) | |
Liabilities, Fair Value Disclosure [Abstract] | |
Junior subordinated debentures and Trust Preferred Securities | 122,116 |
Carrying Value | Trust preferred securities due 2033-2037 | |
Liabilities, Fair Value Disclosure [Abstract] | |
Junior subordinated debentures and Trust Preferred Securities | 92,786 |
Carrying Value | 7.25% Subordinated notes due 2055 (the 7.25% 2055 Notes) | |
Liabilities, Fair Value Disclosure [Abstract] | |
Subordinated Notes | 145,327 |
Carrying Value | 7.50% Subordinated notes due 2055 (the 7.50% 2055 Notes) | |
Liabilities, Fair Value Disclosure [Abstract] | |
Subordinated Notes | 130,795 |
Fair Value | |
Liabilities, Fair Value Disclosure [Abstract] | |
Revolving credit facility | 130,000 |
Senior notes | 245,247 |
Secured loan agreements | 174,414 |
Promissory notes | 66,929 |
Total debt | 1,280,596 |
Fair Value | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | |
Liabilities, Fair Value Disclosure [Abstract] | |
Convertible senior notes | 5,363 |
Fair Value | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | |
Liabilities, Fair Value Disclosure [Abstract] | |
Convertible senior notes | 172,290 |
Fair Value | Junior subordinated debentures (the 2035-2037 Notes) | |
Liabilities, Fair Value Disclosure [Abstract] | |
Junior subordinated debentures and Trust Preferred Securities | 110,410 |
Fair Value | Trust preferred securities due 2033-2037 | |
Liabilities, Fair Value Disclosure [Abstract] | |
Junior subordinated debentures and Trust Preferred Securities | 86,137 |
Fair Value | 7.25% Subordinated notes due 2055 (the 7.25% 2055 Notes) | |
Liabilities, Fair Value Disclosure [Abstract] | |
Subordinated Notes | 150,000 |
Fair Value | 7.50% Subordinated notes due 2055 (the 7.50% 2055 Notes) | |
Liabilities, Fair Value Disclosure [Abstract] | |
Subordinated Notes | $ 139,806 |
Fair Value of Financial Instr85
Fair Value of Financial Instruments (Portfolio of Life Insurance Policies) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Assets, Fair Value Disclosure [Abstract] | ||
Average age of insured (in years) | 86 years 30 days | 82 years 9 months 1 day |
Average life expectancy (in months) | 74 months | 107 months |
Average face amount per policy | $ 9,500 | $ 6,572 |
Internal rate of return (in percentage) | 12.00% | 12.40% |
Fair Value of Financial Instr86
Fair Value of Financial Instruments (Increase or (Decrease) in Carrying Value of Investment in Life Insurance Policies) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | ||
Life expectancy Plus 4 Months | $ (1,843) | $ (44,207) |
Life expectancy Minus 4 Months | 1,546 | 43,492 |
Discount Plus 1% | (1,263) | (29,881) |
Discount Minus 1% | $ 1,368 | $ 33,155 |
Fair Value of Financial Instr87
Fair Value of Financial Instruments (Additional Information) (Details) | Jun. 09, 2017shares | Jun. 30, 2017USD ($)shares | Dec. 31, 2017USD ($)Contract | Dec. 31, 2016USD ($)Contract | Dec. 31, 2015USD ($) | May 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value asset, Level 1 to Level 2 transfers, amount | $ 35,818,000 | $ 0 | $ 0 | |||
Number of equity securities (in shares) | shares | 1,709,430 | |||||
Number of contracts | Contract | 6 | 254 | ||||
Fair value of life settlement contract | $ 20,808,000 | $ 356,856,000 | ||||
Internal rate of return (in percentage) | 12.00% | 12.40% | ||||
Impairment of intangible assets | $ 1,029,000 | $ 1,450,000 | 2,060,000 | |||
Non-cash write-down of goodwill | 0 | 273,000 | $ 55,304,000 | |||
Loss on sale of life settlement contract | $ 25,104,000 | |||||
NGHC | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Percentage of ownership interests (in percentage) | 11.50% | 1.60% | 12.00% | |||
Equity method investments, fair value disclosure | $ 1,709,430 | |||||
Sale of stock, number of shares issued in transaction | shares | 10,586,000 | 10,586,000 | ||||
Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Discount rate (in percentage) | 8.00% | |||||
Internal rate of return (in percentage) | 10.00% | |||||
Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Discount rate (in percentage) | 30.00% | |||||
Internal rate of return (in percentage) | 15.00% | |||||
7.25% Subordinated notes due 2055 (the 7.25% 2055 Notes) | Senior Subordinated Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument, stated interest rate (percentage) | 7.25% | |||||
7.50% Subordinated notes due 2055 (the 7.50% 2055 Notes) | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument, stated interest rate (percentage) | 7.50% | |||||
2.75% Convertible senior notes due 2044 (the 2044 Notes) | Convertible Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument, stated interest rate (percentage) | 2.75% | |||||
6.125% Notes due 2023 (the 2023 Notes) | Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument, stated interest rate (percentage) | 6.125% | |||||
Carrying Value | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity method investments, fair value disclosure | 151,332,000 | |||||
Fair Value | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity method investments, fair value disclosure | $ 33,573,000 | $ 307,263,000 |
Acquisitions (Additional Inform
Acquisitions (Additional Information) (Details) $ / shares in Units, € in Thousands, $ in Thousands | May 01, 2017USD ($) | Feb. 28, 2017USD ($) | Nov. 07, 2016USD ($) | May 31, 2016USD ($)country | May 31, 2016EUR (€)country | May 20, 2016USD ($) | May 09, 2016USD ($) | Apr. 18, 2016USD ($) | Jan. 22, 2016USD ($)$ / sharesshares | Apr. 30, 2016USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | |||||||||||||||||||||
Gross written premiums | $ 8,434,630 | $ 7,949,270 | $ 6,799,537 | ||||||||||||||||||
Service, fee and other revenues | $ 125,758 | $ 180,505 | $ 168,446 | $ 137,496 | $ 150,999 | $ 133,857 | $ 124,305 | $ 128,805 | $ 612,205 | 537,966 | $ 428,143 | ||||||||||
Share price (in dollars per share) | $ / shares | $ 69,000 | ||||||||||||||||||||
Minimum | Renewal rights | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Useful life (in years) | 5 years | ||||||||||||||||||||
Maximum | Renewal rights | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Useful life (in years) | 5 years | ||||||||||||||||||||
AmeriHealth Casualty Insurance Company | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Percentage of interest acquired | 100.00% | ||||||||||||||||||||
Aggregate purchase price | $ 93,969 | ||||||||||||||||||||
Reserve guarantee | $ 40,000 | 34,081 | $ 34,081 | ||||||||||||||||||
Reserve guarantee amount subject to loss corridor | 10.00% | ||||||||||||||||||||
Reserve guarantee term | 5 years | ||||||||||||||||||||
Gross written premiums | 95,743 | ||||||||||||||||||||
AmeriHealth Casualty Insurance Company | Agency Relationships | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 2,750 | ||||||||||||||||||||
Useful life (in years) | 10 years | ||||||||||||||||||||
AmeriHealth Casualty Insurance Company | Noncompete Agreements | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 1,500 | ||||||||||||||||||||
Useful life (in years) | 5 years | ||||||||||||||||||||
PDP Group, Inc | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Percentage of interest acquired | 100.00% | ||||||||||||||||||||
Aggregate purchase price | $ 62,422 | ||||||||||||||||||||
Cash paid | $ 49,801 | ||||||||||||||||||||
Period to pay cash (in years) | 3 years | ||||||||||||||||||||
Contingent consideration | $ 12,621 | ||||||||||||||||||||
Service, fee and other revenues | 29,331 | ||||||||||||||||||||
PDP Group, Inc | Agency Relationships | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 43,000 | ||||||||||||||||||||
Useful life (in years) | 17 years | ||||||||||||||||||||
PDP Group, Inc | Noncompete Agreements | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 800 | ||||||||||||||||||||
Useful life (in years) | 5 years | ||||||||||||||||||||
PDP Group, Inc | Trademarks | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 2,000 | ||||||||||||||||||||
ANV Holdings B.V. | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Aggregate purchase price | $ 203,277 | ||||||||||||||||||||
Gross written premiums | 644,038 | 85,033 | |||||||||||||||||||
ANV Holdings B.V. | Agency Relationships | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | 32,000 | ||||||||||||||||||||
ANV Holdings B.V. | Trademarks | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | 3,000 | ||||||||||||||||||||
ANV Holdings B.V. | Syndicate Capacity | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 45,000 | ||||||||||||||||||||
N.V. Nationale Borg-Maatschappij and Affiliates | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Aggregate purchase price | $ 181,478 | € 163,053 | |||||||||||||||||||
Gross written premiums | 128,540 | 64,420 | |||||||||||||||||||
Number of agencies, over | country | 70 | 70 | |||||||||||||||||||
Company lifetime | 120 years | 120 years | |||||||||||||||||||
N.V. Nationale Borg-Maatschappij and Affiliates | Customer relationships | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 19,007 | ||||||||||||||||||||
N.V. Nationale Borg-Maatschappij and Affiliates | Software | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | 778 | ||||||||||||||||||||
N.V. Nationale Borg-Maatschappij and Affiliates | Value of Business Acquired | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 17,437 | ||||||||||||||||||||
N.V. Nationale Borg-Maatschappij and Affiliates | Minimum | Customer relationships | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Useful life (in years) | 3 years | 3 years | |||||||||||||||||||
N.V. Nationale Borg-Maatschappij and Affiliates | Minimum | Software | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Useful life (in years) | 3 years | 3 years | |||||||||||||||||||
N.V. Nationale Borg-Maatschappij and Affiliates | Minimum | Value of Business Acquired | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Useful life (in years) | 3 years | 3 years | |||||||||||||||||||
N.V. Nationale Borg-Maatschappij and Affiliates | Maximum | Customer relationships | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Useful life (in years) | 15 years | 15 years | |||||||||||||||||||
N.V. Nationale Borg-Maatschappij and Affiliates | Maximum | Software | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Useful life (in years) | 15 years | 15 years | |||||||||||||||||||
N.V. Nationale Borg-Maatschappij and Affiliates | Maximum | Value of Business Acquired | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Useful life (in years) | 15 years | 15 years | |||||||||||||||||||
N.V. Nationale Borg-Maatschappij and Affiliates | Trademarks | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 1,556 | ||||||||||||||||||||
N.V. Nationale Borg-Maatschappij and Affiliates | Licenses | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 389 | ||||||||||||||||||||
First Nationwide Title Agency | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Aggregate purchase price | $ 39,000 | ||||||||||||||||||||
Cash paid | 24,000 | ||||||||||||||||||||
Service, fee and other revenues | 23,768 | 12,471 | |||||||||||||||||||
First Nationwide Title Agency | Customer relationships | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | 14,000 | ||||||||||||||||||||
First Nationwide Title Agency | Noncompete Agreements | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 3,000 | ||||||||||||||||||||
First Nationwide Title Agency | Minimum | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Useful life (in years) | 4 years | ||||||||||||||||||||
First Nationwide Title Agency | Maximum | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Useful life (in years) | 7 years | ||||||||||||||||||||
First Nationwide Title Agency | Trademarks | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 1,500 | ||||||||||||||||||||
Genworth Financial Insurance Limited | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Aggregate purchase price | $ 54,500 | ||||||||||||||||||||
Gross written premiums | 18,763 | 17,254 | |||||||||||||||||||
Cash paid | $ 54,500 | ||||||||||||||||||||
Republic Companies | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Aggregate purchase price | $ 232,692 | ||||||||||||||||||||
Gross written premiums | 537,466 | 483,400 | |||||||||||||||||||
Cash paid | $ 113,456 | ||||||||||||||||||||
Service, fee and other revenues | 8,201 | 5,853 | |||||||||||||||||||
Republic Companies | Customer relationships | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 40,800 | ||||||||||||||||||||
Republic Companies | Minimum | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Useful life (in years) | 7 years | ||||||||||||||||||||
Republic Companies | Maximum | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Useful life (in years) | 8 years | ||||||||||||||||||||
Republic Companies | Trademarks | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 5,200 | ||||||||||||||||||||
Republic Companies | Licenses | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 11,400 | ||||||||||||||||||||
Republic Companies | Notes Payable, Other Payables | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Liabilities incurred | 104,685 | ||||||||||||||||||||
Republic Companies | Minority Owners of Republic | Notes Payable, Other Payables | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Liabilities incurred | 15,200 | 10,400 | |||||||||||||||||||
Republic Companies | Minority Owners of Republic | Notes Payable quarterly installments | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Liabilities incurred | $ 800 | ||||||||||||||||||||
ARI Insurance Company (domestic) | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Aggregate purchase price | $ 3,819 | ||||||||||||||||||||
Intangible assets | 1,097 | ||||||||||||||||||||
Gross written premiums | 30,023 | $ 43,334 | |||||||||||||||||||
Cash paid | 23,500 | ||||||||||||||||||||
Common stock subscriptions | $ 276 | ||||||||||||||||||||
Shares issued during the period (in shares) | shares | 12,347 | ||||||||||||||||||||
Common stock discounted price percentage | 20.00% | ||||||||||||||||||||
Payments to employee bonus pool | $ 3,750 | ||||||||||||||||||||
Loss and loss adjustment expense reserves adjustment | 9,744 | ||||||||||||||||||||
Intangibles adjustment | 847 | ||||||||||||||||||||
ARI Insurance Company (domestic) | Licenses | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Intangible assets | $ 250 | ||||||||||||||||||||
Series of individually immaterial business acquisitions | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Aggregate purchase price | 48,993 | ||||||||||||||||||||
Contingent consideration | $ 76,718 | $ 76,718 |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation) (Details) € in Thousands, $ in Thousands | May 01, 2017USD ($) | Feb. 28, 2017USD ($) | Nov. 07, 2016USD ($) | May 31, 2016USD ($) | May 31, 2016EUR (€) | May 20, 2016USD ($) | May 09, 2016USD ($) | Apr. 18, 2016USD ($) | Jan. 22, 2016USD ($) | Apr. 30, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | |||||||||||||
Acquisition gain | $ 0 | $ 48,775 | $ 5,826 | ||||||||||
AmeriHealth Casualty Insurance Company | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash and investments | $ 275,351 | ||||||||||||
Premium receivable | 45,288 | ||||||||||||
Accrued interest and dividends | 1,162 | ||||||||||||
Reinsurance recoverables | 14,512 | ||||||||||||
Other assets | 42,622 | ||||||||||||
Goodwill and intangible assets | 18,824 | ||||||||||||
Total assets acquired | 397,759 | ||||||||||||
Loss and loss expense reserves | 226,922 | ||||||||||||
Unearned premium | 49,285 | ||||||||||||
Accrued expenses and other current liabilities | 27,583 | ||||||||||||
Total liabilities | 303,790 | ||||||||||||
Acquisition price | $ 93,969 | ||||||||||||
PDP Group, Inc | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash and investments | $ 11,826 | ||||||||||||
Premium receivable | 29,188 | ||||||||||||
Other assets | 705 | ||||||||||||
Property and equipment, net | 776 | ||||||||||||
Goodwill and intangible assets | 55,586 | ||||||||||||
Total assets acquired | 98,081 | ||||||||||||
Accrued expenses and other current liabilities | 35,659 | ||||||||||||
Total liabilities | 35,659 | ||||||||||||
Cash paid | 49,801 | ||||||||||||
Acquisition price | $ 62,422 | ||||||||||||
ANV Holdings B.V. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash and investments | $ 415,968 | ||||||||||||
Premium receivable | 166,536 | ||||||||||||
Accrued interest and dividends | 635 | ||||||||||||
Reinsurance recoverables | 128,595 | ||||||||||||
Other assets | 142,786 | ||||||||||||
Deferred tax asset | 14,488 | ||||||||||||
Property and equipment, net | 11,741 | ||||||||||||
Goodwill and intangible assets | 147,235 | ||||||||||||
Total assets acquired | 1,027,984 | ||||||||||||
Loss and loss expense reserves | 438,724 | ||||||||||||
Unearned premium | 230,604 | ||||||||||||
Accrued expenses and other current liabilities | 138,313 | ||||||||||||
Deferred tax liability | 17,066 | ||||||||||||
Total liabilities | 824,707 | ||||||||||||
Acquisition price | $ 203,277 | ||||||||||||
N.V. Nationale Borg-Maatschappij and Affiliates | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash and investments | $ 216,801 | ||||||||||||
Premium receivable | 5,676 | ||||||||||||
Accrued interest and dividends | 83 | ||||||||||||
Reinsurance recoverables | 8,587 | ||||||||||||
Other assets | 14,734 | ||||||||||||
Property and equipment, net | 10,319 | ||||||||||||
Goodwill and intangible assets | 57,319 | ||||||||||||
Total assets acquired | 313,519 | ||||||||||||
Loss and loss expense reserves | 78,909 | ||||||||||||
Unearned premium | 24,782 | ||||||||||||
Accrued expenses and other current liabilities | 28,350 | ||||||||||||
Total liabilities | 132,041 | ||||||||||||
Acquisition price | $ 181,478 | € 163,053 | |||||||||||
First Nationwide Title Agency | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash and investments | $ 268 | ||||||||||||
Property and equipment, net | 66 | ||||||||||||
Goodwill and intangible assets | 45,632 | ||||||||||||
Total assets acquired | 45,966 | ||||||||||||
Accrued expenses and other current liabilities | 491 | ||||||||||||
Deferred tax liability | 6,475 | ||||||||||||
Total liabilities | 6,966 | ||||||||||||
Cash paid | 24,000 | ||||||||||||
Acquisition price | $ 39,000 | ||||||||||||
Genworth Financial Insurance Limited | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash and investments | $ 239,695 | ||||||||||||
Reinsurance recoverables | 27,570 | ||||||||||||
Other assets | 8,422 | ||||||||||||
Property and equipment, net | 964 | ||||||||||||
Total assets | 276,651 | ||||||||||||
Loss and loss expense reserves | 84,463 | ||||||||||||
Unearned premium | 76,308 | ||||||||||||
Accrued expenses and other current liabilities | 13,060 | ||||||||||||
Total liabilities | 173,831 | ||||||||||||
Cash paid | 54,500 | ||||||||||||
Acquisition price | 54,500 | ||||||||||||
Acquisition gain | $ 48,320 | ||||||||||||
Republic Companies | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash and investments | $ 620,700 | ||||||||||||
Premium receivable | 85,455 | ||||||||||||
Accrued interest and dividends | 4,779 | ||||||||||||
Reinsurance recoverables | 622,660 | ||||||||||||
Other assets | 223,619 | ||||||||||||
Deferred tax asset | 28,857 | ||||||||||||
Property and equipment, net | 1,576 | ||||||||||||
Goodwill and intangible assets | 131,607 | ||||||||||||
Total assets | 1,719,253 | ||||||||||||
Loss and loss expense reserves | 879,356 | ||||||||||||
Unearned premium | 301,972 | ||||||||||||
Accrued expenses and other current liabilities | 129,116 | ||||||||||||
Trust preferred outstanding | 92,786 | ||||||||||||
Funds held under reinsurance treaties | 83,331 | ||||||||||||
Total liabilities | 1,486,561 | ||||||||||||
Cash paid | $ 113,456 | ||||||||||||
Acquisition price | $ 232,692 | ||||||||||||
ARI Insurance Company (domestic) | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash and investments | $ 53,917 | ||||||||||||
Premium receivable | 15,577 | ||||||||||||
Accrued interest and dividends | 375 | ||||||||||||
Reinsurance recoverables | 2,116 | ||||||||||||
Intangible assets | 1,097 | ||||||||||||
Other assets | 17,554 | ||||||||||||
Total assets | 90,636 | ||||||||||||
Loss and loss expense reserves | 59,723 | ||||||||||||
Unearned premium | 18,672 | ||||||||||||
Accrued expenses and other current liabilities | 7,967 | ||||||||||||
Total liabilities | 86,362 | ||||||||||||
Cash paid | 23,500 | ||||||||||||
Acquisition price | 3,819 | ||||||||||||
Acquisition gain | $ 455 |
Acquisitions (Trust Risk Group)
Acquisitions (Trust Risk Group) (Details) € in Thousands, $ in Thousands | Jul. 20, 2016USD ($) | Jul. 20, 2016EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 20, 2016EUR (€) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||||
Useful life (in years) | 12 years | 11 years | ||||
Goodwill | $ 552,892 | $ 686,565 | $ 432,700 | |||
Trust Risk Group | ||||||
Business Acquisition [Line Items] | ||||||
Amount of settlement | $ 17,694 | € 16,000 | ||||
Loss Contingency, receivable, proceeds | 15,483 | € 14,000 | ||||
Cash paid | 14,376 | 13,000 | ||||
Liabilities incurred | 3,318 | 3,000 | ||||
Aggregate purchase price | 32,956 | € 29,800 | ||||
Goodwill | $ 332 | 300 | ||||
Noncompete Agreements | Trust Risk Group | ||||||
Business Acquisition [Line Items] | ||||||
Useful life (in years) | 3 years | 3 years | ||||
Assigned to intangible assets | $ 19,353 | 17,500 | ||||
Renewal rights | Trust Risk Group | ||||||
Business Acquisition [Line Items] | ||||||
Useful life (in years) | 4 years | 4 years | ||||
Assigned to intangible assets | $ 13,271 | € 12,000 |
Investment in Life Settlement91
Investment in Life Settlements (Additional Information) (Details) $ in Thousands | Dec. 28, 2017USD ($)Contract | Aug. 16, 2017USD ($)Contract | Dec. 31, 2017USD ($)ContractEntity | Dec. 31, 2016USD ($)Contract | Dec. 31, 2015USD ($) |
Schedule of Cost-method Investments [Line Items] | |||||
Number contracts acquired | Contract | 7 | ||||
Contracts acquired, value | $ 16,473 | ||||
Contracts matured, value | $ 48,045 | ||||
Number of contracts | Contract | 6 | 254 | |||
Contracts, sold during the period | $ 100,000 | ||||
Proceeds from life settlement contract | 90,000 | ||||
Payment expected in the next two years | $ 5,000 | ||||
Ownership percentage by parent | 70.00% | ||||
Contracts settled | 6 | ||||
(Loss) gain on investment in life settlement contracts net of profit commission | $ (2,444) | $ 46,147 | $ 19,844 | ||
Tiger | |||||
Schedule of Cost-method Investments [Line Items] | |||||
Number of contracts | Contract | 114 | ||||
LSC Entities | |||||
Schedule of Cost-method Investments [Line Items] | |||||
Percentage of ownership interest (percentage) | 50.00% | ||||
Number of entities with ownership interest | Entity | 2 | ||||
Dividends | $ 90,000 | ||||
AMTCH | |||||
Schedule of Cost-method Investments [Line Items] | |||||
Percentage of ownership interest (percentage) | 50.00% | ||||
Tiger | |||||
Schedule of Cost-method Investments [Line Items] | |||||
Percentage of ownership interest (percentage) | 50.00% | ||||
Limited Partnership Operated By Third Party | |||||
Schedule of Cost-method Investments [Line Items] | |||||
Contracts contributed | Contract | 136 | ||||
Contracts contributed, contribution value | $ 217,831 | ||||
Contracts contributed, paid in advance for future payments | $ 39,724 | ||||
Ownership percentage | 30.00% | ||||
Life settlement contracts, carrying amount | $ 68,085 |
Investment in Life Settlement92
Investment in Life Settlements (Investments in Life Settlements) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Contractpolicy | Dec. 31, 2017USD ($)Contract | |
Life Settlement Contracts | ||
Expected Maturity Term in Years, 0-1 | Contract | 0 | 0 |
Expected Maturity Term in Years, 1-2 | Contract | 2 | 0 |
Expected Maturity Term in Years, 2-3 | Contract | 7 | 0 |
Expected Maturity Term in Years, 3-4 | Contract | 10 | 1 |
Expected Maturity Term in Years, 4-5 | Contract | 10 | 0 |
Thereafter | Contract | 225 | 5 |
Total | Contract | 254 | 6 |
Fair Value | ||
Expected Maturity Term in Years, 0-1 | $ 0 | $ 0 |
Expected Maturity Term in Years, 1-2 | 8,873 | 0 |
Expected Maturity Term in Years, 2-3 | 39,495 | 0 |
Expected Maturity Term in Years, 3-4 | 37,436 | 6,041 |
Expected Maturity Term in Years, 4-5 | 34,003 | 0 |
Thereafter | 237,049 | 14,767 |
Total | 356,856 | 20,808 |
Face Value | ||
Expected Maturity Term in Years, 0-1 | 0 | 0 |
Expected Maturity Term in Years, 1-2 | 12,500 | 0 |
Expected Maturity Term in Years, 2-3 | 63,000 | 0 |
Expected Maturity Term in Years, 3-4 | 75,422 | 10,000 |
Expected Maturity Term in Years, 4-5 | 82,900 | 0 |
Thereafter | 1,405,414 | 47,000 |
Total | $ 1,639,236 | $ 57,000 |
Life settlement contracts, number of contracts with fair value | Contract | 18 | |
Number of policies with a negative value from discounted cash flow model | policy | 18 | |
Premiums paid for the year ended | $ 2,640 | |
Death benefit received | $ 0 |
Investment in Life Settlement93
Investment in Life Settlements (Premiums to be Paid) (Details) - Premiums Due On Life Settlement Contracts - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Life Insurance Premiums and Related Investment Income [Line Items] | ||
Year 1 | $ 1,555 | $ 61,518 |
Year 2 | 1,620 | 49,684 |
Year 3 | 1,723 | 50,396 |
Year 4 | 2,288 | 46,632 |
Year 5 | 2,147 | 43,223 |
Thereafter | 9,385 | 503,817 |
Total premiums to be paid | $ 18,718 | $ 755,270 |
Intangible Assets and Goodwil94
Intangible Assets and Goodwill (Schedule of Finite lived and Indefinite-lived Intangible Assets, Including Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Accumulated Amortization | $ 203,689 | $ 222,091 |
Total amortization of intangible assets with finite lives | 243,194 | |
Indefinite-lived and finite-lived intangibles, including goodwill, Gross | 584,512 | 778,651 |
Goodwill and intangible assets, Net Value | $ 380,823 | $ 556,560 |
Useful life (in years) | 12 years | 11 years |
Trademarks | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 15,326 | $ 14,756 |
Licenses | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 47,244 | 46,923 |
Use rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Balance | 82,159 | |
Total amortization of intangible assets with finite lives | 82,159 | |
Indefinite-lived intangible assets | 79,681 | |
Renewal rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Balance | 92,392 | 86,525 |
Finite-lived intangible assets, Accumulated Amortization | 52,609 | 38,547 |
Total amortization of intangible assets with finite lives | $ 39,783 | $ 47,978 |
Renewal rights | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 7 years | 7 years |
Renewal rights | Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 17 years | 17 years |
Distribution networks | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Balance | $ 249,397 | $ 194,651 |
Finite-lived intangible assets, Accumulated Amortization | 75,893 | 58,294 |
Total amortization of intangible assets with finite lives | $ 173,504 | $ 136,357 |
Distribution networks | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 6 years | 5 years |
Distribution networks | Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 20 years | 20 years |
Software | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Balance | $ 6,057 | $ 14,649 |
Finite-lived intangible assets, Accumulated Amortization | 4,929 | 4,424 |
Total amortization of intangible assets with finite lives | $ 1,128 | $ 10,225 |
Software | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 3 years | 3 years |
Software | Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 20 years | 20 years |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Balance | $ 253,795 | $ 251,656 |
Finite-lived intangible assets, Accumulated Amortization | 97,394 | 72,633 |
Total amortization of intangible assets with finite lives | $ 156,401 | $ 179,023 |
Customer relationships | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 9 years | 8 years |
Customer relationships | Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 18 years | 18 years |
Trademarks | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Balance | $ 9,720 | $ 9,720 |
Finite-lived intangible assets, Accumulated Amortization | 6,920 | 5,533 |
Total amortization of intangible assets with finite lives | $ 2,800 | $ 4,187 |
Trademarks | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 3 years | 3 years |
Trademarks | Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 15 years | 15 years |
Licenses | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Balance | $ 12,608 | $ 12,608 |
Finite-lived intangible assets, Accumulated Amortization | 12,275 | 11,047 |
Total amortization of intangible assets with finite lives | $ 333 | $ 1,561 |
Licenses | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 5 years | 5 years |
Licenses | Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 50 years | 50 years |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Balance | $ 89,687 | $ 67,482 |
Finite-lived intangible assets, Accumulated Amortization | 55,683 | 31,613 |
Total amortization of intangible assets with finite lives | $ 34,004 | $ 35,869 |
Other | Minimum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 4 years | 4 years |
Other | Maximum | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 10 years | 10 years |
Discontinued Operations, Held-for-sale [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Balance | $ 273,873 | |
Finite-lived intangible assets, Accumulated Amortization | 102,014 | |
Total amortization of intangible assets with finite lives | $ 171,859 |
Intangible Assets and Goodwil95
Intangible Assets and Goodwill (Goodwill Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | |||
Goodwill | $ 923,429 | $ 868,787 | $ 614,922 |
Accumulated impairment losses | (182,222) | (182,222) | $ (182,222) |
Goodwill [Roll Forward] | |||
Beginning balance | 686,565 | 432,700 | |
Goodwill acquired | 70,147 | 258,527 | |
Foreign currency translation and other | (15,505) | (4,662) | |
Assets held for sale | (188,315) | ||
Ending balance | 552,892 | 686,565 | |
Small Commercial Business | |||
Goodwill [Roll Forward] | |||
Beginning balance | 218,903 | 145,352 | |
Goodwill acquired | 16,229 | 73,551 | |
Foreign currency translation and other | 14,813 | 0 | |
Assets held for sale | (11,653) | ||
Ending balance | 238,292 | 218,903 | |
Specialty Risk and Extended Warranty | |||
Goodwill [Roll Forward] | |||
Beginning balance | 415,397 | 244,894 | |
Goodwill acquired | 53,918 | 175,165 | |
Foreign currency translation and other | (20,507) | (4,662) | |
Assets held for sale | (141,145) | ||
Ending balance | 307,663 | 415,397 | |
Specialty Program | |||
Goodwill [Roll Forward] | |||
Beginning balance | 52,265 | 42,454 | |
Goodwill acquired | 0 | 9,811 | |
Foreign currency translation and other | (9,811) | 0 | |
Assets held for sale | (35,517) | ||
Ending balance | $ 6,937 | 52,265 | |
LUXEMBOURG | Specialty Risk and Extended Warranty | |||
Goodwill [Roll Forward] | |||
Beginning balance | $ 60,249 |
Intangible Assets and Goodwil96
Intangible Assets and Goodwill (Amortization Expense) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 74,898 |
2,019 | 66,277 |
2,020 | 52,200 |
2,021 | 44,402 |
2,022 | 37,620 |
Thereafter | 132,556 |
Assets held for sale | (164,759) |
Total amortization of intangible assets with finite lives | $ 243,194 |
Intangible Assets and Goodwil97
Intangible Assets and Goodwill (Impairment Charge and Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 85,143 | $ 65,425 | $ 46,524 |
Renewal rights | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Percentage used for amortization of renewal rights | 125.00% |
Intangible Assets and Goodwil98
Intangible Assets and Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 552,892 | $ 686,565 | $ 432,700 |
Impairment of goodwill | 0 | 273 | 55,304 |
Specialty Risk and Extended Warranty | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 307,663 | $ 415,397 | 244,894 |
LUXEMBOURG | Specialty Risk and Extended Warranty | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 60,249 | ||
Impairment of goodwill | $ 55,304 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Assets [Line Items] | ||
Other receivables (related party $12,280; $35,547) | $ 654,873 | $ 580,718 |
Life settlement contracts | 20,808 | 356,856 |
Other assets (related party $2,334; $1,298) | 463,615 | 347,230 |
Funds held with reinsurance companies | 66,169 | 169,217 |
Loan receivable (related party $256,787; $125,000) | 266,176 | 131,797 |
Deferred tax asset | 116,844 | 16,032 |
Less: Assets classified as held for sale (see Note 27) | (165,435) | 0 |
Total other assets | 1,423,050 | 1,601,850 |
Related Party Transactions | ||
Other Assets [Line Items] | ||
Other receivables (related party $12,280; $35,547) | 12,280 | 35,547 |
Other assets (related party $2,334; $1,298) | 2,334 | 1,298 |
Loan receivable (related party $256,787; $125,000) | $ 259,121 | $ 126,298 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 697,535 | $ 495,484 | |
Less: Accumulated depreciation | (239,970) | (181,152) | |
Total property, equipment and software, net | 453,378 | 314,332 | $ 257,128 |
Depreciation expense | 73,261 | 52,677 | $ 37,905 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 28,414 | 20,678 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 313,576 | 137,096 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 202,568 | 192,846 | |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 73,795 | 57,870 | |
Other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 66,002 | 57,773 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 13,180 | 29,221 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Property, Plant and Equipment [Line Items] | |||
Assets classified as held for sale (see Note 27) | (4,187) | $ 0 | |
Accumulated Depreciation, Depletion and Amortization, Sale or Disposal of Property, Plant and Equipment | $ 14,443 |
Loss and Loss Adjustment Exp101
Loss and Loss Adjustment Expense Reserves (Reconciliation of the beginning and ending balances for unpaid losses and LAE) (Details) $ in Thousands | 12 Months Ended | 24 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2014USD ($) | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Loss and LAE, at beginning of year | $ 10,140,716 | $ 7,208,367 | $ 5,664,205 | $ 7,208,367 | |
Less: reinsurance recoverables at beginning of year | 5,669,649 | 3,873,786 | 2,665,187 | 5,669,649 | $ 2,149,444 |
Net loss and LAE, at beginning of year | 6,266,930 | 4,543,180 | 3,514,761 | ||
Incurred related to: | |||||
Current year | 3,665,506 | 2,884,392 | 2,654,187 | ||
Prior year | 418,972 | 257,887 | 33,931 | ||
Total incurred during the year | 4,084,478 | 3,142,279 | 2,688,118 | ||
Paid related to: | |||||
Current year | (1,259,315) | (1,060,771) | (847,357) | ||
Prior year | (1,962,218) | (1,484,638) | (1,018,931) | ||
Total paid during the year | (3,221,533) | (2,545,409) | (1,866,288) | ||
Commuted loss reserves | 0 | 0 | 129,377 | ||
Retroactive reinsurance recoverable | (1,018,716) | 0 | 0 | ||
Loss portfolio transfers | 0 | 312,049 | |||
Acquired outstanding loss and loss adjustment reserves | 213,686 | 783,066 | 116,044 | 213,686 | |
Allowance for reinsurance recoverable | (34,328) | 0 | 0 | (34,328) | |
Effect of foreign exchange rates | 178,602 | 31,765 | (38,832) | ||
Net loss and LAE, at end of year | 6,469,119 | 6,266,930 | 4,543,180 | 6,469,119 | |
Plus: reinsurance recoverables at end of year | 5,669,649 | 3,873,786 | 2,665,187 | 5,669,649 | $ 2,149,444 |
Loss and LAE, at end of year | $ 12,138,768 | $ 10,140,716 | $ 7,208,367 | $ 12,138,768 | |
Unpaid losses and LAE related to IBNR, percentage | 52.80% | 52.50% | 53.30% | 52.80% |
Short Duration Contracts (Initi
Short Duration Contracts (Initial loss reserves) (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | 48 Months Ended | 60 Months Ended | 84 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||||||||
Loss and LAE, at beginning of year | $ 12,138,768 | $ 10,140,716 | $ 7,208,367 | $ 12,138,768 | $ 12,138,768 | $ 12,138,768 | $ 12,138,768 | $ 5,664,205 | ||
Total gross liability for unpaid loss and loss adjustment expense | 12,138,768 | 10,140,716 | 7,208,367 | 12,138,768 | 12,138,768 | 12,138,768 | 12,138,768 | 5,664,205 | ||
Payments since Transfer (Unaudited) | 3,221,533 | 2,545,409 | 1,866,288 | |||||||
Subsequent Adverse (Favorable) Development (Unaudited) | 4,084,478 | 3,142,279 | $ 2,688,118 | |||||||
Majestic Insurance Company | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||||||||
Loss and LAE, at beginning of year | 110,412 | 110,412 | 110,412 | 110,412 | 110,412 | $ 209,670 | ||||
Total gross liability for unpaid loss and loss adjustment expense | 110,412 | 110,412 | 110,412 | 110,412 | 110,412 | $ 209,670 | ||||
Payments since Transfer (Unaudited) | 140,732 | |||||||||
Subsequent Adverse (Favorable) Development (Unaudited) | 41,474 | |||||||||
HITNY | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||||||||
Loss and LAE, at beginning of year | 18,356 | 18,356 | 18,356 | 18,356 | 18,356 | $ 83,188 | ||||
Total gross liability for unpaid loss and loss adjustment expense | 18,356 | 18,356 | 18,356 | 18,356 | 18,356 | $ 83,188 | ||||
Payments since Transfer (Unaudited) | 35,351 | |||||||||
Subsequent Adverse (Favorable) Development (Unaudited) | (29,481) | |||||||||
ECTNY | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||||||||
Loss and LAE, at beginning of year | 4,378 | 4,378 | 4,378 | 4,378 | 4,378 | 21,988 | ||||
Total gross liability for unpaid loss and loss adjustment expense | 4,378 | 4,378 | 4,378 | 4,378 | 4,378 | $ 21,988 | ||||
Payments since Transfer (Unaudited) | 9,415 | |||||||||
Subsequent Adverse (Favorable) Development (Unaudited) | (8,195) | |||||||||
Magna Carta | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||||||||
Loss and LAE, at beginning of year | 79,042 | 162,979 | 79,042 | 79,042 | 79,042 | 79,042 | ||||
Total gross liability for unpaid loss and loss adjustment expense | $ 79,042 | $ 162,979 | 79,042 | $ 79,042 | $ 79,042 | $ 79,042 | ||||
Payments since Transfer (Unaudited) | 64,151 | |||||||||
Subsequent Adverse (Favorable) Development (Unaudited) | $ (19,786) |
Short Duration Contracts (Detai
Short Duration Contracts (Details) $ in Thousands | Dec. 31, 2017USD ($)claim | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) |
Claims Development [Line Items] | ||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 7,175,562 | $ 6,027,731 | ||||||||
Specialty Program | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,829,829 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 820,918 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 1,497 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,010,408 | 811,212 | ||||||||
Specialty Program | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 491,046 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 375,101 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 932 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 116,877 | 133,353 | ||||||||
Specialty Program | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,161,101 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 703,123 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 5,984 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 463,962 | 429,204 | ||||||||
Specialty Program | Accident Year 2008 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 46,902 | 44,509 | $ 43,235 | $ 44,128 | $ 43,483 | $ 40,992 | $ 36,673 | $ 32,715 | $ 30,895 | $ 33,283 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 1,891 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 43,263 | 40,611 | 39,614 | 37,781 | 33,917 | 28,848 | 22,415 | 15,068 | 8,013 | 3,937 |
Cumulative Number of Reported Claims | claim | 2,698,000 | |||||||||
Specialty Program | Accident Year 2008 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 50,984 | 50,811 | 49,330 | 49,025 | 48,038 | 47,660 | 44,012 | 41,604 | 40,409 | 34,038 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 45 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 50,176 | 49,039 | 48,128 | 45,838 | 43,173 | 39,893 | 35,634 | 24,624 | 16,398 | 5,868 |
Cumulative Number of Reported Claims | claim | 3,513,000 | |||||||||
Specialty Program | Accident Year 2008 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 60,644 | 60,710 | 58,104 | 55,836 | 55,887 | 55,598 | 56,968 | 55,860 | 55,067 | 50,035 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 4,164 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 55,018 | 54,361 | 52,935 | 51,963 | 50,760 | 49,307 | 45,740 | 39,913 | 29,704 | 10,129 |
Cumulative Number of Reported Claims | claim | 6,272,000 | |||||||||
Specialty Program | Accident Year 2008 | Medical malpractice | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Specialty Program | Accident Year 2008 | Property Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Specialty Program | Accident Year 2008 | Professional Indemnity and Other Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Specialty Program | Accident Year 2008 | Other International Warranty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Specialty Program | Accident Year 2009 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 50,481 | 48,333 | 48,710 | 47,929 | 46,808 | 41,663 | 30,298 | 27,461 | 29,332 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 1,367 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 46,682 | 42,976 | 40,400 | 37,001 | 31,446 | 22,793 | 12,719 | 6,920 | 2,970 | |
Cumulative Number of Reported Claims | claim | 2,980,000 | |||||||||
Specialty Program | Accident Year 2009 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 37,597 | 37,634 | 38,389 | 37,665 | 36,942 | 32,811 | 27,189 | 24,087 | 27,887 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 334 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 36,883 | 36,812 | 36,260 | 33,807 | 29,964 | 24,561 | 18,234 | 11,485 | 4,338 | |
Cumulative Number of Reported Claims | claim | 3,591,000 | |||||||||
Specialty Program | Accident Year 2009 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 79,658 | 79,599 | 75,470 | 73,987 | 74,553 | 72,180 | 73,952 | 71,586 | 66,198 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 9,624 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 69,580 | 68,782 | 67,001 | 64,958 | 62,188 | 57,218 | 48,287 | 35,103 | 11,860 | |
Cumulative Number of Reported Claims | claim | 6,208,000 | |||||||||
Specialty Program | Accident Year 2009 | Medical malpractice | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 786 | 704 | 682 | 687 | 655 | 539 | 444 | 228 | 132 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 34 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 661 | 641 | 607 | 549 | 514 | 420 | 191 | 21 | 0 | |
Specialty Program | Accident Year 2009 | Property Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 42,335 | 41,411 | 40,562 | 39,573 | 43,642 | 42,219 | 40,012 | 36,238 | 3,739 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | (55) | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 39,075 | 38,493 | 37,861 | 35,620 | 38,077 | 35,394 | 29,851 | 20,678 | 0 | |
Specialty Program | Accident Year 2009 | Professional Indemnity and Other Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Specialty Program | Accident Year 2009 | Other International Warranty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Specialty Program | Accident Year 2010 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 61,257 | 58,975 | 58,189 | 56,800 | 51,326 | 38,719 | 24,415 | 22,431 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 2,228 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 54,755 | 49,781 | 42,309 | 36,075 | 25,954 | 14,759 | 6,242 | 2,264 | ||
Cumulative Number of Reported Claims | claim | 3,617,000 | |||||||||
Specialty Program | Accident Year 2010 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 28,662 | 29,031 | 26,891 | 24,571 | 21,270 | 17,439 | 10,982 | 9,727 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 234 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 28,133 | 27,836 | 24,848 | 22,049 | 15,499 | 9,960 | 5,818 | 2,375 | ||
Cumulative Number of Reported Claims | claim | 2,253,000 | |||||||||
Specialty Program | Accident Year 2010 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 91,569 | 91,565 | 86,469 | 84,354 | 85,397 | 81,521 | 80,766 | 70,648 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 12,297 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 76,821 | 75,625 | 72,174 | 68,712 | 63,273 | 54,083 | 38,439 | 14,204 | ||
Cumulative Number of Reported Claims | claim | 6,239,000 | |||||||||
Specialty Program | Accident Year 2010 | Medical malpractice | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 66,106 | 60,512 | 58,172 | 56,901 | 54,978 | 46,847 | 36,303 | 21,941 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 2,193 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 54,904 | 53,027 | 49,087 | 43,389 | 39,320 | 30,259 | 14,163 | 2,010 | ||
Specialty Program | Accident Year 2010 | Property Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 165,912 | 163,467 | 163,252 | 163,539 | 165,133 | 160,605 | 144,052 | 86,817 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 248 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 157,549 | 154,453 | 153,172 | 140,259 | 131,919 | 113,869 | 82,361 | 29,845 | ||
Specialty Program | Accident Year 2010 | Professional Indemnity and Other Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 78,433 | 81,263 | 79,228 | 77,587 | 75,460 | 70,018 | 59,315 | 50,029 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 5,313 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 67,805 | 65,961 | 61,804 | 56,738 | 48,236 | 41,097 | 29,015 | 7,410 | ||
Specialty Program | Accident Year 2010 | Other International Warranty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 134,772 | 131,930 | 126,656 | 118,764 | 111,811 | 93,714 | 71,083 | 22,070 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 187 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 133,776 | 129,757 | 123,578 | 114,461 | 105,885 | 86,408 | 56,732 | 1,544 | ||
Specialty Program | Accident Year 2011 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 92,242 | 89,592 | 86,360 | 78,112 | 63,041 | 44,078 | 35,252 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 6,048 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 74,195 | 66,724 | 54,396 | 39,928 | 24,516 | 10,511 | 3,334 | |||
Cumulative Number of Reported Claims | claim | 4,987,000 | |||||||||
Specialty Program | Accident Year 2011 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 19,905 | 20,576 | 20,402 | 17,903 | 16,152 | 11,002 | 3,801 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 90 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 19,581 | 18,507 | 16,383 | 13,792 | 9,602 | 6,384 | 2,143 | |||
Cumulative Number of Reported Claims | claim | 2,570,000 | |||||||||
Specialty Program | Accident Year 2011 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 76,276 | 76,234 | 71,531 | 70,411 | 73,182 | 69,332 | 61,234 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 11,887 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 63,687 | 61,206 | 58,482 | 53,983 | 47,454 | 34,134 | 12,633 | |||
Cumulative Number of Reported Claims | claim | 5,717,000 | |||||||||
Specialty Program | Accident Year 2011 | Medical malpractice | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 91,736 | 86,033 | 82,821 | 76,718 | 74,897 | 64,698 | 44,872 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 3,078 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 65,239 | 58,710 | 49,702 | 40,168 | 28,341 | 14,697 | 5,929 | |||
Specialty Program | Accident Year 2011 | Property Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 228,168 | 223,326 | 220,389 | 221,184 | 225,817 | 210,224 | 177,997 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 622 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 219,715 | 213,880 | 206,610 | 198,733 | 187,204 | 152,495 | 83,817 | |||
Specialty Program | Accident Year 2011 | Professional Indemnity and Other Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 172,716 | 176,102 | 169,528 | 162,188 | 152,551 | 144,199 | 113,129 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 12,360 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 144,123 | 136,976 | 129,697 | 116,031 | 90,725 | 67,750 | 28,760 | |||
Specialty Program | Accident Year 2011 | Other International Warranty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 107,558 | 105,930 | 101,483 | 93,584 | 88,208 | 72,692 | 65,375 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 428 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 105,073 | 101,254 | 95,431 | 85,376 | 75,730 | 54,198 | 24,170 | |||
Specialty Program | Accident Year 2012 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 141,259 | 131,498 | 118,145 | 97,102 | 89,405 | 58,184 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 13,091 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 107,419 | 89,387 | 65,052 | 33,173 | 15,489 | 4,197 | ||||
Cumulative Number of Reported Claims | claim | 6,015,000 | |||||||||
Specialty Program | Accident Year 2012 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 56,934 | 58,374 | 56,108 | 47,663 | 38,487 | 13,797 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 275 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 54,025 | 53,138 | 43,498 | 32,697 | 17,167 | 5,407 | ||||
Cumulative Number of Reported Claims | claim | 6,230,000 | |||||||||
Specialty Program | Accident Year 2012 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 75,507 | 75,605 | 72,150 | 69,358 | 65,955 | 47,744 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 8,305 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 61,206 | 57,718 | 52,881 | 43,481 | 30,557 | 11,436 | ||||
Cumulative Number of Reported Claims | claim | 7,009,000 | |||||||||
Specialty Program | Accident Year 2012 | Medical malpractice | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 158,394 | 145,857 | 145,504 | 131,281 | 126,375 | 105,371 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 7,418 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 97,739 | 82,026 | 64,062 | 47,279 | 21,732 | 5,252 | ||||
Specialty Program | Accident Year 2012 | Property Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 178,060 | 169,509 | 166,194 | 172,301 | 177,551 | 191,636 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 7,705 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 166,406 | 162,605 | 157,265 | 152,778 | 130,662 | 70,746 | ||||
Specialty Program | Accident Year 2012 | Professional Indemnity and Other Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 166,075 | 165,338 | 152,728 | 142,688 | 131,585 | 119,341 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 10,984 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 131,695 | 115,607 | 101,453 | 76,470 | 52,292 | 27,333 | ||||
Specialty Program | Accident Year 2012 | Other International Warranty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 129,665 | 127,694 | 121,760 | 112,842 | 107,044 | 84,992 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 1,464 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 126,081 | 120,582 | 112,039 | 99,624 | 81,111 | 37,063 | ||||
Specialty Program | Accident Year 2013 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 248,583 | 209,317 | 158,866 | 123,826 | 120,228 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 47,280 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 157,903 | 119,057 | 60,127 | 19,936 | 6,666 | |||||
Cumulative Number of Reported Claims | claim | 5,803,000 | |||||||||
Specialty Program | Accident Year 2013 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 67,349 | 64,970 | 58,205 | 45,138 | 35,938 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 1,121 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 62,264 | 53,562 | 38,942 | 22,299 | 8,054 | |||||
Cumulative Number of Reported Claims | claim | 7,292,000 | |||||||||
Specialty Program | Accident Year 2013 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 111,228 | 109,268 | 104,142 | 100,078 | 86,150 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 14,251 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 83,289 | 75,753 | 63,540 | 41,460 | 13,546 | |||||
Cumulative Number of Reported Claims | claim | 11,341,000 | |||||||||
Specialty Program | Accident Year 2013 | Medical malpractice | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 164,098 | 151,202 | 149,313 | 133,808 | 130,321 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 7,643 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 85,733 | 69,093 | 46,363 | 26,160 | 5,010 | |||||
Specialty Program | Accident Year 2013 | Property Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 169,241 | 166,139 | 164,529 | 172,302 | 175,522 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 1,147 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 151,995 | 144,580 | 134,225 | 110,430 | 58,460 | |||||
Specialty Program | Accident Year 2013 | Professional Indemnity and Other Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 163,246 | 156,633 | 138,402 | 118,631 | 108,391 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 14,621 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 118,915 | 97,277 | 69,851 | 37,086 | 15,345 | |||||
Specialty Program | Accident Year 2013 | Other International Warranty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 186,067 | 180,887 | 168,598 | 158,177 | 169,954 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 7,677 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 173,065 | 162,038 | 144,786 | 117,340 | 69,773 | |||||
Specialty Program | Accident Year 2014 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 284,131 | 249,815 | 197,045 | 183,233 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 71,102 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 147,701 | 95,003 | 40,088 | 9,274 | ||||||
Cumulative Number of Reported Claims | claim | 7,575,000 | |||||||||
Specialty Program | Accident Year 2014 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 59,401 | 58,751 | 47,314 | 32,623 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 3,852 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 47,375 | 33,651 | 21,359 | 7,525 | ||||||
Cumulative Number of Reported Claims | claim | 7,452,000 | |||||||||
Specialty Program | Accident Year 2014 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 145,179 | 142,808 | 130,413 | 128,948 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 23,514 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 99,752 | 82,962 | 58,335 | 20,359 | ||||||
Cumulative Number of Reported Claims | claim | 13,176,000 | |||||||||
Specialty Program | Accident Year 2014 | Medical malpractice | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 139,747 | 132,678 | 124,157 | 122,883 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 7,123 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 63,659 | 47,455 | 25,650 | 8,315 | ||||||
Specialty Program | Accident Year 2014 | Property Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 153,666 | 157,003 | 152,890 | 175,045 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 2,008 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 142,042 | 135,475 | 116,021 | 69,193 | ||||||
Specialty Program | Accident Year 2014 | Professional Indemnity and Other Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 219,682 | 215,000 | 186,536 | 158,618 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 34,287 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 131,015 | 100,185 | 64,012 | 24,733 | ||||||
Specialty Program | Accident Year 2014 | Other International Warranty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 208,184 | 204,358 | 183,272 | 179,346 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 19,102 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 186,219 | 173,228 | 144,640 | 77,144 | ||||||
Specialty Program | Accident Year 2015 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 328,695 | 284,995 | 187,549 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 133,601 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 112,108 | 54,606 | 12,758 | |||||||
Cumulative Number of Reported Claims | claim | 7,431,000 | |||||||||
Specialty Program | Accident Year 2015 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 70,108 | 69,980 | 43,810 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 9,357 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 46,424 | 29,612 | 10,071 | |||||||
Cumulative Number of Reported Claims | claim | 5,955,000 | |||||||||
Specialty Program | Accident Year 2015 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 177,652 | 176,766 | 155,115 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 44,894 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 98,630 | 68,194 | 24,152 | |||||||
Cumulative Number of Reported Claims | claim | 17,483,000 | |||||||||
Specialty Program | Accident Year 2015 | Medical malpractice | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 122,925 | 118,176 | 112,425 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 24,480 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 44,151 | 24,233 | 7,139 | |||||||
Specialty Program | Accident Year 2015 | Property Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 172,813 | 172,539 | 157,435 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 7,417 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 149,803 | 121,188 | 74,562 | |||||||
Specialty Program | Accident Year 2015 | Professional Indemnity and Other Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 201,001 | 194,000 | 165,158 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 55,024 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 90,115 | 60,817 | 29,048 | |||||||
Specialty Program | Accident Year 2015 | Other International Warranty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 236,617 | 228,741 | 198,226 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 32,325 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 194,444 | 162,296 | 96,928 | |||||||
Specialty Program | Accident Year 2016 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 321,226 | 282,606 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 210,602 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 62,239 | 14,110 | ||||||||
Cumulative Number of Reported Claims | claim | 4,659,000 | |||||||||
Specialty Program | Accident Year 2016 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 52,139 | 54,720 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 12,899 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 22,871 | 11,037 | ||||||||
Cumulative Number of Reported Claims | claim | 3,121,000 | |||||||||
Specialty Program | Accident Year 2016 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 192,292 | 178,360 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 67,785 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 72,533 | 26,731 | ||||||||
Cumulative Number of Reported Claims | claim | 16,901,000 | |||||||||
Specialty Program | Accident Year 2016 | Medical malpractice | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 139,583 | 127,885 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 57,763 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 23,517 | 8,388 | ||||||||
Specialty Program | Accident Year 2016 | Property Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 208,737 | 211,035 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 13,798 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 152,413 | 82,891 | ||||||||
Specialty Program | Accident Year 2016 | Professional Indemnity and Other Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 177,541 | 181,091 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 87,013 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 58,984 | 29,447 | ||||||||
Specialty Program | Accident Year 2016 | Other International Warranty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 280,274 | 278,934 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 74,205 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 201,395 | 120,338 | ||||||||
Specialty Program | Accident Year 2017 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 255,053 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 206,354 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 14,653 | |||||||||
Cumulative Number of Reported Claims | claim | 3,053,000 | |||||||||
Specialty Program | Accident Year 2017 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 47,967 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 32,646 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 7,369 | |||||||||
Cumulative Number of Reported Claims | claim | 1,703,000 | |||||||||
Specialty Program | Accident Year 2017 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 151,096 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 85,887 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 22,607 | |||||||||
Cumulative Number of Reported Claims | claim | 9,777,000 | |||||||||
Specialty Program | Accident Year 2017 | Medical malpractice | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 132,277 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 75,875 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,718 | |||||||||
Specialty Program | Accident Year 2017 | Property Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 270,709 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 63,840 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 117,042 | |||||||||
Specialty Program | Accident Year 2017 | Professional Indemnity and Other Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 203,882 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 151,300 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 29,372 | |||||||||
Specialty Program | Accident Year 2017 | Other International Warranty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 334,576 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 184,065 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 143,959 | |||||||||
Small Commercial Business | Tower | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 264,224 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 0 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 99,768 | 0 | ||||||||
Small Commercial Business | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 698,915 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 326,622 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 2,212 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 374,505 | 296,241 | ||||||||
Small Commercial Business | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 956,475 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 561,892 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 69 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 394,652 | 337,188 | ||||||||
Small Commercial Business | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,126,804 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,155,496 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 107,953 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 2,079,261 | 1,524,055 | ||||||||
Small Commercial Business | Accident Year 2008 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,255 | 5,164 | 6,443 | 7,061 | 7,616 | 5,024 | 2,077 | 3,518 | 4,557 | 4,764 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 188 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 4,956 | 4,898 | 4,971 | 4,695 | 4,331 | 3,100 | 2,456 | 1,288 | 685 | 256 |
Cumulative Number of Reported Claims | claim | 1,071,000 | |||||||||
Small Commercial Business | Accident Year 2008 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 38,555 | 38,561 | 38,531 | 38,700 | 39,014 | 39,212 | 39,816 | 37,092 | 35,622 | 34,547 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | (195) | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 38,770 | 38,456 | 38,326 | 37,999 | 37,516 | 36,494 | 31,934 | 25,175 | 16,479 | 8,949 |
Cumulative Number of Reported Claims | claim | 871,000 | |||||||||
Small Commercial Business | Accident Year 2008 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 190,615 | 185,250 | 181,359 | 180,769 | 179,476 | 176,546 | 174,708 | 173,915 | 174,424 | 180,508 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 12,337 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 174,576 | 171,392 | 168,692 | 165,605 | 161,544 | 152,500 | 141,680 | 124,777 | 93,666 | $ 41,555 |
Cumulative Number of Reported Claims | claim | 12,142,000 | |||||||||
Small Commercial Business | Accident Year 2009 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 14,427 | 14,701 | 16,346 | 16,405 | 15,347 | 12,414 | 11,811 | 12,232 | 13,325 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | (249) | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 13,788 | 13,111 | 11,243 | 10,351 | 9,636 | 8,670 | 6,686 | 4,327 | 1,457 | |
Cumulative Number of Reported Claims | claim | 984,000 | |||||||||
Small Commercial Business | Accident Year 2009 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 40,578 | 40,672 | 40,649 | 40,826 | 41,744 | 41,947 | 42,784 | 37,728 | 38,059 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | (214) | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 41,198 | 40,278 | 40,181 | 40,049 | 38,402 | 35,029 | 28,399 | 20,011 | 8,470 | |
Cumulative Number of Reported Claims | claim | 953,000 | |||||||||
Small Commercial Business | Accident Year 2009 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 247,725 | 244,116 | 244,138 | 239,939 | 237,660 | 234,596 | 234,453 | 221,418 | 216,044 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 14,221 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 220,740 | 216,853 | 212,257 | 205,968 | 196,803 | 180,073 | 155,654 | 116,098 | $ 50,293 | |
Cumulative Number of Reported Claims | claim | 19,446,000 | |||||||||
Small Commercial Business | Accident Year 2010 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 17,847 | 18,182 | 18,221 | 15,982 | 15,206 | 9,912 | 10,182 | 9,714 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 106 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 17,353 | 16,300 | 14,022 | 10,730 | 7,763 | 4,961 | 2,679 | 756 | ||
Cumulative Number of Reported Claims | claim | 676,000 | |||||||||
Small Commercial Business | Accident Year 2010 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 39,554 | 38,496 | 38,740 | 38,748 | 37,865 | 35,850 | 34,851 | 30,600 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 791 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 39,276 | 37,651 | 36,992 | 34,736 | 29,644 | 22,647 | 14,745 | 8,174 | ||
Cumulative Number of Reported Claims | claim | 571,000 | |||||||||
Small Commercial Business | Accident Year 2010 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 277,751 | 270,822 | 278,802 | 270,508 | 269,261 | 262,549 | 256,624 | 236,893 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 17,516 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 249,444 | 243,130 | 234,404 | 222,458 | 205,524 | 178,415 | 133,755 | $ 59,964 | ||
Cumulative Number of Reported Claims | claim | 23,294,000 | |||||||||
Small Commercial Business | Accident Year 2011 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 21,166 | 20,161 | 20,335 | 20,446 | 18,348 | 11,124 | 9,593 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 431 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 19,087 | 16,867 | 14,086 | 11,075 | 6,869 | 2,959 | 739 | |||
Cumulative Number of Reported Claims | claim | 1,158,000 | |||||||||
Small Commercial Business | Accident Year 2011 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 41,570 | 41,762 | 41,474 | 40,618 | 39,268 | 37,687 | 34,434 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | (188) | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 41,476 | 41,028 | 37,652 | 32,908 | 26,278 | 18,281 | 8,052 | |||
Cumulative Number of Reported Claims | claim | 932,000 | |||||||||
Small Commercial Business | Accident Year 2011 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 335,859 | 329,761 | 335,628 | 331,311 | 331,905 | 317,893 | 278,983 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 21,550 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 294,284 | 282,573 | 269,749 | 248,604 | 216,215 | 160,635 | $ 66,396 | |||
Cumulative Number of Reported Claims | claim | 27,648,000 | |||||||||
Small Commercial Business | Accident Year 2012 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 40,358 | 37,102 | 35,212 | 34,694 | 32,126 | 20,018 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 2,591 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 33,885 | 29,475 | 23,605 | 17,091 | 9,113 | 1,423 | ||||
Cumulative Number of Reported Claims | claim | 2,529,000 | |||||||||
Small Commercial Business | Accident Year 2012 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 58,329 | 58,170 | 56,281 | 51,645 | 47,494 | 40,980 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 2,434 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 55,750 | 52,312 | 45,245 | 35,148 | 22,204 | 9,622 | ||||
Cumulative Number of Reported Claims | claim | 1,226,000 | |||||||||
Small Commercial Business | Accident Year 2012 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 388,257 | 378,822 | 363,670 | 375,645 | 385,919 | 350,207 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 39,313 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 323,641 | 305,726 | 281,544 | 243,713 | 181,158 | $ 80,159 | ||||
Cumulative Number of Reported Claims | claim | 39,953,000 | |||||||||
Small Commercial Business | Accident Year 2013 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 68,685 | 62,219 | 57,690 | 56,051 | 55,729 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 4,990 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 57,466 | 41,296 | 28,775 | 15,841 | 5,226 | |||||
Cumulative Number of Reported Claims | claim | 3,324,000 | |||||||||
Small Commercial Business | Accident Year 2013 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 79,406 | 75,950 | 65,557 | 60,542 | 54,037 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 2,937 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 71,587 | 57,490 | 38,901 | 25,186 | 12,572 | |||||
Cumulative Number of Reported Claims | claim | 2,204,000 | |||||||||
Small Commercial Business | Accident Year 2013 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 483,131 | 464,432 | 441,243 | 459,099 | 483,520 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 46,740 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 384,068 | 347,105 | 290,037 | 211,079 | $ 83,926 | |||||
Cumulative Number of Reported Claims | claim | 56,832,000 | |||||||||
Small Commercial Business | Accident Year 2014 | Tower | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 248,968 | 242,134 | 234,294 | 197,476 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 11,712 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 183,380 | 148,228 | 112,927 | 44,067 | ||||||
Cumulative Number of Reported Claims | claim | 13,949,000 | |||||||||
Small Commercial Business | Accident Year 2014 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 89,948 | 79,789 | 80,041 | 83,583 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 10,300 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 64,298 | 39,609 | 21,877 | 6,981 | ||||||
Cumulative Number of Reported Claims | claim | 4,575,000 | |||||||||
Small Commercial Business | Accident Year 2014 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 118,184 | 100,299 | 88,527 | 84,175 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 9,506 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 89,150 | 59,967 | 35,244 | 14,898 | ||||||
Cumulative Number of Reported Claims | claim | 3,910,000 | |||||||||
Small Commercial Business | Accident Year 2014 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 660,039 | 635,987 | 640,801 | 723,070 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 72,539 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 490,835 | 410,629 | 296,280 | $ 107,040 | ||||||
Cumulative Number of Reported Claims | claim | 80,636,000 | |||||||||
Small Commercial Business | Accident Year 2015 | Tower | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 107,395 | 109,278 | 84,625 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 9,242 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 76,708 | 61,056 | 28,835 | |||||||
Cumulative Number of Reported Claims | claim | 5,221,000 | |||||||||
Small Commercial Business | Accident Year 2015 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 129,764 | 120,504 | 119,668 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 22,220 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 64,887 | 30,197 | 9,076 | |||||||
Cumulative Number of Reported Claims | claim | 7,041,000 | |||||||||
Small Commercial Business | Accident Year 2015 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 135,972 | 135,230 | 122,312 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 23,696 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 73,929 | 42,770 | 19,613 | |||||||
Cumulative Number of Reported Claims | claim | 7,318,000 | |||||||||
Small Commercial Business | Accident Year 2015 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 786,080 | 747,321 | 851,277 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 127,087 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 490,561 | 356,983 | $ 131,873 | |||||||
Cumulative Number of Reported Claims | claim | 94,594,000 | |||||||||
Small Commercial Business | Accident Year 2016 | Tower | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 7,629 | 13,487 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 2,594 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 4,136 | 3,200 | ||||||||
Cumulative Number of Reported Claims | claim | 526,000 | |||||||||
Small Commercial Business | Accident Year 2016 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 138,125 | 138,204 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 58,801 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 35,980 | 10,287 | ||||||||
Cumulative Number of Reported Claims | claim | 7,637,000 | |||||||||
Small Commercial Business | Accident Year 2016 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 202,023 | 202,639 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 66,490 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 74,580 | 30,944 | ||||||||
Cumulative Number of Reported Claims | claim | 11,388,000 | |||||||||
Small Commercial Business | Accident Year 2016 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 859,920 | 807,942 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 255,608 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 374,563 | 152,262 | ||||||||
Cumulative Number of Reported Claims | claim | 96,458,000 | |||||||||
Small Commercial Business | Accident Year 2017 | Tower | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 0 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 0 | |||||||||
Small Commercial Business | Accident Year 2017 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 173,340 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 123,070 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 14,922 | |||||||||
Cumulative Number of Reported Claims | claim | 6,503,000 | |||||||||
Small Commercial Business | Accident Year 2017 | Commercial Auto Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 202,304 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 113,101 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 36,176 | |||||||||
Cumulative Number of Reported Claims | claim | 11,353,000 | |||||||||
Small Commercial Business | Accident Year 2017 | Workers' compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 897,427 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 468,122 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 152,784 | |||||||||
Cumulative Number of Reported Claims | claim | 82,192,000 | |||||||||
Specialty Risk and Extended Warranty | Medical malpractice | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,015,652 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 439,321 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 0 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 576,331 | 433,557 | ||||||||
Specialty Risk and Extended Warranty | Property Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,589,641 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,296,040 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 0 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 293,601 | 209,152 | ||||||||
Specialty Risk and Extended Warranty | Professional Indemnity and Other Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,382,576 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 772,024 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 0 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 610,552 | 587,684 | ||||||||
Specialty Risk and Extended Warranty | Other International Warranty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,617,713 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,264,012 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 0 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 353,701 | $ 229,499 |
Short Duration Contracts (Histo
Short Duration Contracts (Historical claims) (Details) | Dec. 31, 2017 |
Specialty Program | Commercial Auto Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 (in percentage) | 12.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 (in percentage) | 21.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 (in percentage) | 20.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 (in percentage) | 20.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 (in percentage) | 14.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 (in percentage) | 7.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 (in percentage) | 6.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 (in percentage) | 2.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 (in percentage) | 1.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 10 (in percentage) | 2.20% |
Specialty Program | General Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 (in percentage) | 4.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 (in percentage) | 9.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 (in percentage) | 15.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 (in percentage) | 19.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 (in percentage) | 16.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 (in percentage) | 11.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 (in percentage) | 8.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 (in percentage) | 5.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 (in percentage) | 4.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 10 (in percentage) | 5.70% |
Specialty Program | Workers' compensation | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 (in percentage) | 14.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 (in percentage) | 26.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 (in percentage) | 17.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 (in percentage) | 10.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 (in percentage) | 6.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 (in percentage) | 3.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 (in percentage) | 2.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 (in percentage) | 1.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 (in percentage) | 1.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 10 (in percentage) | 1.10% |
Small Commercial Business | Commercial Auto Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 (in percentage) | 17.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 (in percentage) | 20.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 (in percentage) | 20.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 (in percentage) | 19.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 (in percentage) | 12.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 (in percentage) | 5.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 (in percentage) | 1.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 (in percentage) | 1.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 (in percentage) | 1.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 10 (in percentage) | 0.80% |
Small Commercial Business | General Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 (in percentage) | 6.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 (in percentage) | 15.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 (in percentage) | 18.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 (in percentage) | 19.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 (in percentage) | 14.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 (in percentage) | 14.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 (in percentage) | 9.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 (in percentage) | 8.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 (in percentage) | 1.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 10 (in percentage) | 1.10% |
Small Commercial Business | Tower | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 (in percentage) | 28.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 (in percentage) | 23.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 (in percentage) | 14.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 (in percentage) | 14.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 (in percentage) | 0.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 (in percentage) | 0.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 (in percentage) | 0.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 (in percentage) | 0.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 (in percentage) | 0.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 10 (in percentage) | 0.00% |
Small Commercial Business | Workers' compensation | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 (in percentage) | 18.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 (in percentage) | 27.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 (in percentage) | 16.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 (in percentage) | 10.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 (in percentage) | 6.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 (in percentage) | 4.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 (in percentage) | 2.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 (in percentage) | 1.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 (in percentage) | 1.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 10 (in percentage) | 1.70% |
Specialty Risk and Extended Warranty | Property Insurance Product Line | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 (in percentage) | 32.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 (in percentage) | 33.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 (in percentage) | 15.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 (in percentage) | 7.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 (in percentage) | 4.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 (in percentage) | 1.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 (in percentage) | 2.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 (in percentage) | 1.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 (in percentage) | 1.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 10 (in percentage) | 0.00% |
Specialty Risk and Extended Warranty | Other International Warranty | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 (in percentage) | 31.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 (in percentage) | 31.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 (in percentage) | 16.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 (in percentage) | 9.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 (in percentage) | 7.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 (in percentage) | 5.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 (in percentage) | 4.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 (in percentage) | 3.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 (in percentage) | 0.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 10 (in percentage) | 0.00% |
Specialty Risk and Extended Warranty | Professional Indemnity and Other Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 (in percentage) | 13.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 (in percentage) | 18.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 (in percentage) | 15.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 (in percentage) | 13.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 (in percentage) | 10.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 (in percentage) | 6.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 (in percentage) | 4.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 (in percentage) | 2.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 (in percentage) | 0.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 10 (in percentage) | 0.00% |
Specialty Risk and Extended Warranty | Medical malpractice | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 (in percentage) | 4.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 (in percentage) | 11.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 (in percentage) | 17.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 (in percentage) | 15.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 (in percentage) | 10.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 (in percentage) | 8.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 (in percentage) | 6.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 (in percentage) | 3.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 (in percentage) | 2.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 10 (in percentage) | 0.00% |
Short Duration Contracts (Narra
Short Duration Contracts (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2014 | |
Effects of Reinsurance [Line Items] | |||||
Gross written premiums | $ 8,434,630 | $ 7,949,270 | $ 6,799,537 | ||
Tower Companies [Member] | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance, Percentage of Quota Share | 100.00% | ||||
Reinsurance, Unearned Premium Assumed | $ 475,038 | $ 173,460 | |||
Percentage of reinsurance related losses assumed | 100.00% | ||||
Gross written premiums | $ 133,424 |
Short Duration Contracts (Recon
Short Duration Contracts (Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ 7,175,562 | $ 6,027,731 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Increase (Decrease) Due to Retroactive Reinsurance Adjustment | 1,018,716 | 0 | $ 0 | |
Total reinsurance recoverable on unpaid claims | 5,669,649 | 3,873,786 | ||
Reserves related to NCCI pooling arrangement | 110,924 | 108,514 | ||
Unallocated claims adjustment expenses | 201,349 | 130,685 | ||
Total | 312,273 | 239,199 | ||
Total gross liability for unpaid loss and loss adjustment expense | 12,138,768 | 10,140,716 | $ 7,208,367 | $ 5,664,205 |
Other Short-duration Insurance Product Line | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 801,944 | 1,036,586 | ||
Small Commercial Business | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total reinsurance recoverable on unpaid claims | 2,583,825 | 2,011,160 | ||
Small Commercial Business | Workers' compensation | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 2,079,261 | 1,524,055 | ||
Small Commercial Business | Commercial Auto Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 394,652 | 337,188 | ||
Small Commercial Business | General Liability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 374,505 | 296,241 | ||
Small Commercial Business | Tower | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 99,768 | 0 | ||
Specialty Program | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total reinsurance recoverable on unpaid claims | 1,020,804 | 1,029,023 | ||
Specialty Program | Workers' compensation | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 463,962 | 429,204 | ||
Specialty Program | Commercial Auto Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 116,877 | 133,353 | ||
Specialty Program | General Liability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 1,010,408 | 811,212 | ||
Specialty Risk and Extended Warranty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total reinsurance recoverable on unpaid claims | 1,046,304 | 833,603 | ||
Specialty Risk and Extended Warranty | Property Insurance Product Line | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 293,601 | 209,152 | ||
Specialty Risk and Extended Warranty | Medical malpractice | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 576,331 | 433,557 | ||
Specialty Risk and Extended Warranty | Professional Indemnity and Other Liability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 610,552 | 587,684 | ||
Specialty Risk and Extended Warranty | Other International Warranty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ 353,701 | $ 229,499 |
Short Duration Contracts (Re107
Short Duration Contracts (Reconciliation of Incurred during the previous year) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Development (Favorable)/Adverse for Current Year as Indicated by SDC | $ 517,179 | ||
Development on Accident Years Prior to SDC Included Years | (19,489) | ||
Claims Development recorded at time of business acquisition | (21,399) | ||
Lines of Business Not Included in Note 11 | (62,749) | ||
Effect of Foreign Exchange Rates and Allocations by Accident Year | 5,430 | ||
Development (Favorable)/Adverse for Current Year as Indicated by Loss Reserve Roll Forward | $ 418,972 | $ 257,887 | $ 33,931 |
Short Duration Contracts ( Reco
Short Duration Contracts ( Reconciliation of Paid during the year) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Paid Loss for Current Year as Indicated by SDC | $ 2,247,017 | ||
Paid Loss on Accident Years Prior to SDC Included Years | 13,706 | ||
Line of Business Not Included in Note 11 | 849,901 | ||
Paid Loss Related to NCCI Pooling Arrangement | 29,654 | ||
Paid Unallocated Claims Adjustment Expense | 122,162 | ||
Paid Unallocated Claims Adjustment Expense | (40,907) | ||
Paid Loss for Current Year as Indicated by Loss Reserve Roll Forward | $ 3,221,533 | $ 2,545,409 | $ 1,866,288 |
Accrued Expenses and Other L109
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued Expenses and Other Liabilities [Line Items] | ||
Deferred revenue | $ 636,170 | $ 609,722 |
Commission payable | 431,589 | 410,493 |
Accounts payable and other | 311,050 | 337,057 |
Premium taxes, assessments and surcharges payable | 186,241 | 165,289 |
Contingent consideration | 75,367 | 71,657 |
Dividend payable | 33,442 | 41,448 |
Total accrued expenses and other liabilities | 913,474 | 1,635,666 |
US Based Fee Businesses | Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Accrued Expenses and Other Liabilities [Line Items] | ||
Less: Amounts classified as held for sale (See Note 27) | $ (760,385) | $ 0 |
Debt (Borrowings) (Details)
Debt (Borrowings) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 130,000 | $ 130,000 |
6.125% Notes due 2023 (the 2023 Notes) | 248,458 | 248,185 |
Junior subordinated debentures and Trusted securities | 123,714 | |
Secured loan agreements | 174,414 | 75,762 |
Promissory notes | 66,504 | 118,643 |
Total debt | 1,288,721 | 1,234,900 |
5.5% Convertible senior notes due 2021 (the 2021 Notes) | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | 5,363 | 5,223 |
2.75% Convertible senior notes due 2044 (the 2044 Notes) | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | 172,958 | 166,387 |
Junior subordinated debentures (the 2035-2037 Notes) | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures and Trusted securities | 122,116 | 122,028 |
Trust preferred securities due 2033-2037 | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures and Trusted securities | 92,786 | 92,786 |
7.25% Subordinated notes due 2055 (the 7.25% 2055 Notes) | ||
Debt Instrument [Line Items] | ||
Subordinated debt | 145,327 | 145,202 |
7.50% Subordinated notes due 2055 (the 7.50% 2055 Notes) | ||
Debt Instrument [Line Items] | ||
Subordinated debt | $ 130,795 | $ 130,684 |
Per annum interest rate of notes (percentage) | 7.50% |
Debt (Aggregate Scheduled Matur
Debt (Aggregate Scheduled Maturities of Borrowings) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
2,018 | $ 7,220 | |
2,019 | 161,595 | |
2,020 | 27,436 | |
2,021 | 16,507 | |
2,022 | 10,401 | |
Thereafter | 1,080,589 | |
Total scheduled payments | 1,303,748 | |
Unamortized deferred origination costs | (15,027) | $ (15,960) |
Total debt | $ 1,288,721 | $ 1,234,900 |
Debt (Aggregate Scheduled Ma112
Debt (Aggregate Scheduled Maturities of Borrowings Footnotes) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2008 | Apr. 30, 2008 | Dec. 31, 2007 |
Debt Instrument [Line Items] | |||||
Note payable on collateral loan – related party | $ 167,975 | $ 167,975 | |||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Unamortized original issue discount | (43,157) | (47,263) | |||
Senior Notes | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | |||||
Debt Instrument [Line Items] | |||||
Unamortized original issue discount | (611) | (735) | |||
Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | |||||
Debt Instrument [Line Items] | |||||
Unamortized original issue discount | (42,546) | $ (46,528) | |||
Maiden Reinsurance Company | |||||
Debt Instrument [Line Items] | |||||
Note payable on collateral loan – related party | $ 167,975 | $ 34,240 | $ 20,192 | $ 113,542 |
Debt (Credit facilities) (Detai
Debt (Credit facilities) (Details) € in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Sep. 12, 2014USD ($) |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Available | $ 46,928,000 | ||
Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Limit | 175,000,000 | $ 350,000,000 | |
Letters of Credit Outstanding | 173,072,000 | ||
Letters of Credit Available | 1,928,000 | ||
Line of Credit | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Limit | 139,060,000 | ||
Letters of Credit Outstanding | 139,060,000 | ||
Letters of Credit Available | 0 | ||
Line of Credit | Lloyds | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Limit | 614,842,000 | ||
Letters of Credit Outstanding | 573,554,000 | ||
Letters of Credit Available | 41,288,000 | ||
Line of Credit | ING Bank N.V. and Deutsche Bank Netherlands N.V. | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Limit | 104,084,000 | € 86,716 | |
Letters of Credit Outstanding | 72,228,000 | € 60,181 | |
Letters of Credit Available | 31,856,000 | ||
Line of Credit | Comerica Bank | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Limit | 75,000,000 | ||
Letters of Credit Outstanding | 42,900,000 | ||
Letters of Credit Available | $ 32,100,000 |
Debt (Interest) (Details)
Debt (Interest) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Interest income (expense) | $ 98,265 | $ 79,526 | $ 55,355 |
Convertible Senior Notes | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | |||
Debt Instrument [Line Items] | |||
Interest income (expense) | 471 | 461 | 825 |
Convertible Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | |||
Debt Instrument [Line Items] | |||
Interest income (expense) | 13,013 | 12,571 | 12,160 |
Senior Notes | 6.125% Notes due 2023 (the 2023 Notes) | |||
Debt Instrument [Line Items] | |||
Interest income (expense) | 15,587 | 15,587 | 15,587 |
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Interest income (expense) | 5,785 | 6,641 | |
Convertible Debt | Junior subordinated debentures (the 2035-2037 Notes) | |||
Debt Instrument [Line Items] | |||
Interest income (expense) | 6,077 | ||
Junior Subordinated Debt [Member] | 2033-2037 TPS Notes | |||
Debt Instrument [Line Items] | |||
Interest income (expense) | 4,368 | 2,772 | 0 |
Subordinate Debenture | 7.25% Subordinated notes due 2055 (the 7.25% 2055 Notes) | |||
Debt Instrument [Line Items] | |||
Interest income (expense) | 11,000 | 11,000 | 5,868 |
Subordinate Debenture | 7.50% Subordinated notes due 2055 (the 7.50% 2055 Notes) | |||
Debt Instrument [Line Items] | |||
Interest income (expense) | 10,237 | 10,237 | 2,939 |
Secured Debt | |||
Debt Instrument [Line Items] | |||
Interest income (expense) | 6,361 | 2,536 | 872 |
Notes Payable to Banks [Member] | |||
Debt Instrument [Line Items] | |||
Interest income (expense) | 4,585 | 4,954 | 623 |
Other Debt Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Interest income (expense) | 15,455 | 4,230 | 2,764 |
Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Interest income (expense) | 6,172 | 4,617 | 3,726 |
Lloyds | Letter of Credit | Line of Credit | |||
Debt Instrument [Line Items] | |||
Interest income (expense) | $ 5,231 | $ 4,484 | $ 3,350 |
Debt (Revolving Credit Agreemen
Debt (Revolving Credit Agreement) (Details) - USD ($) | Sep. 12, 2014 | Dec. 31, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | |||
Revolving credit facility | $ 130,000,000 | $ 130,000,000 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Letters of credit available | 46,928,000 | ||
Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Term of debt instrument (in years) | 5 years | ||
Letters of Credit Limit | $ 350,000,000 | 175,000,000 | |
Revolving credit facility | 130,000,000 | ||
Letters of credit outstanding | 173,072,000 | ||
Letters of credit available | 1,928,000 | ||
Line of Credit | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Limit | 139,060,000 | ||
Additional borrowing capacity | $ 150,000,000 | ||
Letters of credit outstanding | 139,060,000 | ||
Letters of credit available | $ 0 | ||
Line of Credit | Maximum | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Commitment fee percentage | 0.25% | ||
Line of Credit | Minimum | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Commitment fee percentage | 0.15% | ||
Line of Credit | Federal Funds Effective Swap Rate | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate, variable, percentage | 0.50% | ||
Line of Credit | One Month London Interbank Offered Rate | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate, variable, percentage | 1.00% | ||
Line of Credit | LIBOR | Maximum | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate, variable, percentage | 1.625% | ||
Line of Credit | LIBOR | Minimum | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate, variable, percentage | 1.125% | ||
Line of Credit | Base Rate | Maximum | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate, variable, percentage | 0.625% | ||
Line of Credit | Base Rate | Minimum | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate, variable, percentage | 0.125% |
Debt (Convertible Senior Notes)
Debt (Convertible Senior Notes) (Details) | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||
Aug. 31, 2013USD ($) | Jan. 31, 2012USD ($)day | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||||
Common stock, par value (usd per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Conversion rate for conversion of convertible senior notes | shares | 1,270,539 | ||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ 5,271,000 | ||
Outstanding principal | 1,303,748,000 | ||||
Interest income (expense) | (98,265,000) | (79,526,000) | $ (55,355,000) | ||
5.5% Convertible senior notes due 2021 (the 2021 Notes) | |||||
Debt Instrument [Line Items] | |||||
2.75% Convertible senior notes due 2044 | 5,363,000 | 5,223,000 | |||
2.75% Convertible senior notes due 2044 (the 2044 Notes) | |||||
Debt Instrument [Line Items] | |||||
2.75% Convertible senior notes due 2044 | $ 172,958,000 | $ 166,387,000 | |||
Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (percentage) | 7.46% | ||||
Equity component, net of tax | $ 34,693,000 | ||||
Convertible Senior Notes | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 200,000,000 | ||||
Common stock, par value (usd per share) | $ / shares | $ 0.01 | ||||
Debt conversion earlier date | Sep. 15, 2021 | ||||
Threshold percentage of stock price trigger | 130.00% | ||||
Threshold consecutive trading days | day | 20 | ||||
Threshold consecutive trading days | day | 30 | ||||
Threshold business days | 5 days | ||||
Threshold trading days, following the consecutive threshold business days | 5 days | ||||
Converted instrument, shares issued per thousand dollars of principal amount | shares | 83.3945 | ||||
Converted instrument, conversion rate, amount | $ 1,000 | ||||
Initial conversion price of per share of Common Stock | $ / shares | $ 11.9911984603 | ||||
Unamortized OID | $ 41,679,000 | ||||
Deferred origination costs relating to the liability component | $ 4,750,000 | ||||
Debt instrument, interest rate (percentage) | 8.57% | ||||
Transaction costs associated with the equity component | $ 1,250,000 | ||||
Per annum interest rate of notes (percentage) | 5.50% | 5.50% | 5.50% | ||
Redemption price, percentage of principal amount redeemed | 100.00% | ||||
Interest income (expense) | $ (471,000) | $ (461,000) | $ (825,000) | ||
Convertible Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 158,257,000 | ||||
Converted instrument, shares issued per thousand dollars of principal amount | shares | 26.9961 | ||||
Converted instrument, conversion rate, amount | $ 1,000 | ||||
Initial conversion price of per share of Common Stock | $ / shares | $ 37.0423876041 | ||||
Conversion rate for conversion of convertible senior notes | shares | 2,731,727 | ||||
Unamortized OID | $ 53,374,000 | ||||
Per annum interest rate of notes (percentage) | 2.75% | ||||
Issuance of additional convertible senior notes | $ 76,000,000 | ||||
Percentage of face amount | 0.9 | ||||
Rate of accretion, percentage | 0.06 | ||||
Contingent interest, percentage of principal amount | 130.00% | ||||
Contingent payment of principal or interest, amount | $ 1,000 | ||||
Average trading price, percentage | 0.25% | ||||
Principal amount at maturity | $ 1,000 | ||||
Issue price for indenture at maturity | 900 | ||||
Outstanding principal | 157,457,000 | 210,831,000 | |||
Interest income (expense) | (13,013,000) | (12,571,000) | (12,160,000) | ||
Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Interest income (expense) | (5,785,000) | (6,641,000) | |||
Convertible Debt | Twenty Twenty One Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Original debt, amount | 62,078,000 | ||||
Aggregate Principal Amount of Notes | 6,031,000 | ||||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Outstanding principal | 223,728,000 | 221,455,000 | |||
2.75% Convertible senior notes due 2044 | 180,571,000 | 174,192,000 | |||
Senior Notes | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | |||||
Debt Instrument [Line Items] | |||||
Outstanding principal | 6,031,000 | 6,031,000 | |||
2.75% Convertible senior notes due 2044 | 5,420,000 | 5,296,000 | |||
Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | |||||
Debt Instrument [Line Items] | |||||
Outstanding principal | 217,697,000 | 215,424,000 | |||
2.75% Convertible senior notes due 2044 | $ 175,151,000 | 168,896,000 | |||
Senior Notes | 6.125% Notes due 2023 (the 2023 Notes) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 250,000,000 | ||||
Per annum interest rate of notes (percentage) | 6.125% | ||||
Commitment fees and debt issuance costs | $ 2,740,000 | ||||
Interest income (expense) | $ (15,587,000) | $ (15,587,000) | $ (15,587,000) | ||
Minimum | Senior Notes | 6.125% Notes due 2023 (the 2023 Notes) | |||||
Debt Instrument [Line Items] | |||||
Increase (decrease) in interest rate | 1.00% | ||||
Ratio of indebtedness to net capital | 0.3 | ||||
Maximum | Convertible Senior Notes | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | |||||
Debt Instrument [Line Items] | |||||
Threshold percentage of stock price trigger | 98.00% | ||||
Maximum | Senior Notes | 6.125% Notes due 2023 (the 2023 Notes) | |||||
Debt Instrument [Line Items] | |||||
Ratio of indebtedness to net capital | 0.35 | ||||
Increase in Leveraged Ratio by More than 35 Percent [Member] | Minimum | Senior Notes | 6.125% Notes due 2023 (the 2023 Notes) | |||||
Debt Instrument [Line Items] | |||||
Increase (decrease) in interest rate | 0.50% | ||||
Increase in Leveraged Ratio by 30 Percent to 35 Percent | Minimum | Senior Notes | 6.125% Notes due 2023 (the 2023 Notes) | |||||
Debt Instrument [Line Items] | |||||
Increase (decrease) in interest rate | 1.50% | ||||
Event of Default | Maximum | Senior Notes | 6.125% Notes due 2023 (the 2023 Notes) | |||||
Debt Instrument [Line Items] | |||||
Grace period in case of acquisition | 18 months | ||||
On or before December 15, 2018 | Convertible Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | |||||
Debt Instrument [Line Items] | |||||
Threshold percentage of stock price trigger | 130.00% | ||||
On or before December 15, 2018 | Minimum | Convertible Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | |||||
Debt Instrument [Line Items] | |||||
Stock price trigger (in dollars per share) | $ / shares | $ 48.67 | ||||
After December 15, 2024 | Convertible Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage of principal amount redeemed | 100.00% | ||||
On or Before December Fifteen Twenty Eighteen [Member] | Convertible Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage of principal amount redeemed | 100.00% | ||||
After December Fifteen Twenty Eighteen [Member] | Convertible Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage of principal amount redeemed | 100.00% | ||||
5.5% Convertible senior notes due 2021 (the 2021 Notes) | Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 5,271,000 | ||||
Notes retired, amount | 131,881,000 | ||||
Sales Price Condition for Cash [Member] | Convertible Debt | Twenty Twenty One Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Original debt, amount | $ 62,079,000 |
Debt (Amounts Recorded for Note
Debt (Amounts Recorded for Notes) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Outstanding principal | $ 1,303,748 | |
2021 Notes | ||
Debt Instrument [Line Items] | ||
Liability component | 5,363 | $ 5,223 |
2044 Notes | ||
Debt Instrument [Line Items] | ||
Liability component | 172,958 | 166,387 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 223,728 | 221,455 |
Unamortized OID | (43,157) | (47,263) |
Liability component | 180,571 | 174,192 |
Senior Notes | 2021 Notes | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 6,031 | 6,031 |
Unamortized OID | (611) | (735) |
Liability component | 5,420 | 5,296 |
Senior Notes | 2044 Notes | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 217,697 | 215,424 |
Unamortized OID | (42,546) | (46,528) |
Liability component | $ 175,151 | $ 168,896 |
Debt (Subordinate Debt) (Detail
Debt (Subordinate Debt) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Entity | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Equity investment in unconsolidated subsidiaries – related parties | $ 0 | $ 151,332 |
Number of special purpose trusts established | Entity | 4 | |
Trust equity investment | $ 3,714 | |
Subordinate Debenture | Junior subordinated debentures (the 2035-2037 Notes) | ||
Debt Instrument [Line Items] | ||
Placement fees | $ 2,605 | |
Term of debt instrument (in years) | 30 years | |
Junior Subordinated Debt [Member] | 2033-2037 TPS Notes | ||
Debt Instrument [Line Items] | ||
Equity investment in unconsolidated subsidiaries – related parties | $ 2,786 |
Debt (2033-2037 TPS Notes - Sum
Debt (2033-2037 TPS Notes - Summary) (Details) - Junior Subordinated Debt [Member] | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |
Aggregate Principal Amount of Notes | $ 92,786,000 |
Three Month LIBOR | |
Debt Instrument [Line Items] | |
Debt instrument interest rate, margin | 3.20% |
RIG Capital Trust I | |
Debt Instrument [Line Items] | |
Aggregate Principal Amount of Notes | $ 10,310,000 |
Per Annum Interest Rate of Notes | 5.695% |
RIG Capital Trust I | Three Month LIBOR | |
Debt Instrument [Line Items] | |
Debt instrument interest rate, margin | 4.00% |
RIG Capital Statutory Trust II | |
Debt Instrument [Line Items] | |
Aggregate Principal Amount of Notes | $ 20,619,000 |
Per Annum Interest Rate of Notes | 5.228% |
RIG Capital Statutory Trust II | Three Month LIBOR | |
Debt Instrument [Line Items] | |
Debt instrument interest rate, margin | 3.85% |
RIG Capital Trust III | |
Debt Instrument [Line Items] | |
Aggregate Principal Amount of Notes | $ 20,619,000 |
Per Annum Interest Rate of Notes | 4.788% |
RIG Capital Trust IV | |
Debt Instrument [Line Items] | |
Aggregate Principal Amount of Notes | $ 25,774,000 |
Per Annum Interest Rate of Notes | 4.788% |
RIG Capital Trust V | |
Debt Instrument [Line Items] | |
Aggregate Principal Amount of Notes | $ 15,464,000 |
Per Annum Interest Rate of Notes | 4.888% |
RIG Capital Trust V | Three Month LIBOR | |
Debt Instrument [Line Items] | |
Debt instrument interest rate, margin | 3.30% |
Preferred stock | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount | $ 90,000,000 |
Preferred stock | RIG Capital Trust I | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount | 10,000,000 |
Preferred stock | RIG Capital Statutory Trust II | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount | 20,000,000 |
Preferred stock | RIG Capital Trust III | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount | 20,000,000 |
Preferred stock | RIG Capital Trust IV | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount | 25,000,000 |
Preferred stock | RIG Capital Trust V | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount | 15,000,000 |
Common stock | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount | 2,786,000 |
Common stock | RIG Capital Trust I | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount | 310,000 |
Common stock | RIG Capital Statutory Trust II | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount | 619,000 |
Common stock | RIG Capital Trust III | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount | 619,000 |
Common stock | RIG Capital Trust IV | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount | 774,000 |
Common stock | RIG Capital Trust V | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount | $ 464,000 |
Debt (2035-2037 TPS Notes - Sum
Debt (2035-2037 TPS Notes - Summary) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount of Trust Preferred Securities | $ 120,000 |
Aggregate Liquidation Amount of Common Securities | 3,714 |
Aggregate Principal Amount of Notes | 123,714 |
AmTrust Capital Financing Trust I | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount of Trust Preferred Securities | 25,000 |
Aggregate Liquidation Amount of Common Securities | 774 |
Aggregate Principal Amount of Notes | $ 25,774 |
Stated Maturity of Notes | Mar. 17, 2035 |
Per annum interest rate of notes (percentage) | 5.00% |
AmTrust Capital Financing Trust II | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount of Trust Preferred Securities | $ 25,000 |
Aggregate Liquidation Amount of Common Securities | 774 |
Aggregate Principal Amount of Notes | $ 25,774 |
Stated Maturity of Notes | Jun. 15, 2035 |
Per annum interest rate of notes (percentage) | 4.988% |
AmTrust Capital Financing Trust III | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount of Trust Preferred Securities | $ 30,000 |
Aggregate Liquidation Amount of Common Securities | 928 |
Aggregate Principal Amount of Notes | $ 30,928 |
Stated Maturity of Notes | Sep. 15, 2036 |
Per annum interest rate of notes (percentage) | 4.888% |
AmTrust Capital Financing Trust IV | |
Debt Instrument [Line Items] | |
Aggregate Liquidation Amount of Trust Preferred Securities | $ 40,000 |
Aggregate Liquidation Amount of Common Securities | 1,238 |
Aggregate Principal Amount of Notes | $ 41,238 |
Stated Maturity of Notes | Mar. 15, 2037 |
Per annum interest rate of notes (percentage) | 4.588% |
Three Month LIBOR | AmTrust Capital Financing Trust I | |
Debt Instrument [Line Items] | |
Debt instrument interest rate, margin | 3.40% |
Three Month LIBOR | AmTrust Capital Financing Trust III | |
Debt Instrument [Line Items] | |
Debt instrument interest rate, margin | 3.30% |
Three Month LIBOR | AmTrust Capital Financing Trust IV | |
Debt Instrument [Line Items] | |
Debt instrument interest rate, margin | 3.00% |
Debt (Subordinate Notes) (Detai
Debt (Subordinate Notes) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Interest income (expense) | $ (98,265,000) | $ (79,526,000) | $ (55,355,000) | |
7.25% Subordinated notes due 2055 (the 7.25% 2055 Notes) | ||||
Debt Instrument [Line Items] | ||||
Subordinated debt | $ 145,327,000 | 145,202,000 | ||
7.50% Subordinated notes due 2055 (the 7.50% 2055 Notes) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated interest rate (percentage) | 7.50% | |||
Subordinated debt | $ 130,795,000 | 130,684,000 | ||
Subordinate Debenture | 7.25% Subordinated notes due 2055 (the 7.25% 2055 Notes) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 150,000,000 | |||
Debt instrument, stated interest rate (percentage) | 7.25% | 7.25% | ||
Unamortized loan commitment and origination fees and unamortized discounts or premiums | $ 4,990,000 | |||
Interest income (expense) | $ (11,000,000) | $ (11,000,000) | (5,868,000) | |
Subordinate Debenture | 7.50% Subordinated notes due 2055 (the 7.50% 2055 Notes) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 135,000,000 | |||
Debt instrument, stated interest rate (percentage) | 7.50% | 7.50% | ||
Redemption Price, percentage of principal amount redeemed | 100.00% | |||
Unamortized loan commitment and origination fees and unamortized discounts or premiums | $ 4,461,000 | |||
Interest income (expense) | $ (10,237,000) | $ (10,237,000) | $ (2,939,000) |
Debt (Secured Loan Agreement) (
Debt (Secured Loan Agreement) (Details) | Feb. 24, 2017USD ($) | Jan. 12, 2017 | Apr. 07, 2016USD ($) | Aug. 29, 2014USD ($) | Dec. 31, 2017USD ($)subsidiary | Dec. 31, 2017GBP (£) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017GBP (£)subsidiary |
Debt Instrument [Line Items] | |||||||||
Interest expense (net of interest income - related party - $4,654; $7,593; and $8,701) | $ (98,265,000) | $ (79,526,000) | $ (55,355,000) | ||||||
Number of subsidiaries | subsidiary | 24 | 24 | |||||||
Convertible Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest expense (net of interest income - related party - $4,654; $7,593; and $8,701) | $ (5,785,000) | (6,641,000) | |||||||
Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest expense (net of interest income - related party - $4,654; $7,593; and $8,701) | (6,361,000) | (2,536,000) | (872,000) | ||||||
Llyod's Bank PLC | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Deferred costs | 105,000 | £ 78,000 | |||||||
Teachers Insurance and Annuity Association of America | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan, maturity period (in years) | 10 years | ||||||||
Debt instrument, face amount | 99,321,000 | £ 73,500,000 | |||||||
Debt instrument, stated interest rate (percentage) | 3.45% | ||||||||
Interest expense | $ 3,158,000 | ||||||||
Number of subsidiaries | subsidiary | 3 | 3 | |||||||
Office Building [Member] | Llyod's Bank PLC | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 10,542,000 | £ 7,800,000 | |||||||
Aircraft | KEY Equipment Finance | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan, maturity period (in years) | 5 years | ||||||||
Debt instrument, face amount | $ 30,500,000 | ||||||||
Debt instrument, stated interest rate (percentage) | 2.27% | ||||||||
Monthly installment payment | $ 538,000 | ||||||||
Interest expense (net of interest income - related party - $4,654; $7,593; and $8,701) | (320,000) | (458,000) | (592,000) | ||||||
Building | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 10,250,000 | ||||||||
Debt instrument, stated interest rate (percentage) | 3.75% | 3.75% | |||||||
Periodic payment, interest | $ 47,000 | ||||||||
Debt instrument, term, extension (in years) | 5 years | 5 years | |||||||
Interest expense | $ 390,000 | 391,000 | 89,000 | ||||||
2033-2037 TPS Notes | Junior Subordinated Debt [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest expense (net of interest income - related party - $4,654; $7,593; and $8,701) | (4,368,000) | (2,772,000) | $ 0 | ||||||
Citigroup [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 11,350,000 | ||||||||
Debt instrument, stated interest rate (percentage) | 4.67% | ||||||||
Monthly installment payment | $ 64,000 | ||||||||
Interest expense | 484,000 | ||||||||
ING Bank N.V. and Deutsche Bank Netherlands N.V. | Letter of Credit | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest expense | $ 632,000 | ||||||||
Citigroup Global Markets Realty Corp [Member] | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan, maturity period (in years) | 10 years | 5 years | 5 years | ||||||
Debt instrument, face amount | $ 29,000,000 | ||||||||
Debt instrument, stated interest rate (percentage) | 4.96% | ||||||||
Periodic payment, interest | $ 169,000 | £ 30,000 | |||||||
Loan Processing Fee | $ 289,000 | 236,000 | |||||||
Debt Instrument, Covenant, Percentage of Fair Value of Property | 70.00% | 70.00% | |||||||
Interest expense | $ 1,465,000 | $ 1,109,000 | |||||||
LIBOR | Llyod's Bank PLC | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument interest rate, margin | 2.68% | 2.68% |
Debt (Promissory Notes) (Detail
Debt (Promissory Notes) (Details) $ in Thousands | Jun. 29, 2017USD ($) | Mar. 30, 2017USD ($) | Sep. 30, 2012USD ($)promissory_note | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)debt_instrument | Dec. 31, 2012 | Feb. 24, 2017 | Apr. 18, 2016USD ($) | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | ||||||||||
Promissory notes | $ 66,504 | $ 118,643 | ||||||||
Citigroup [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, stated interest rate (percentage) | 4.67% | |||||||||
Interest expense | 484 | |||||||||
State and Local Government of Ohio | Notes Payable, Other Payables | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Promissory notes | $ 8,000 | |||||||||
Interest expense | 344 | 344 | $ 344 | |||||||
Number of debt instruments | promissory_note | 2 | |||||||||
Deferred costs | $ 1,430 | |||||||||
Delek Finance US Inc. [Member] | Notes Payable to Banks [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest expense | 3,914 | 4,314 | ||||||||
Republic Companies | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Promissory notes | $ 104,685 | |||||||||
Debt instrument, stated interest rate (percentage) | 5.75% | |||||||||
Repayments of debt | $ 25,910 | $ 26,171 | ||||||||
Repayment of debt, percentage of principal | 99.00% | |||||||||
Mutual Insurers Holding Company [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Promissory notes | $ 6,500 | |||||||||
Interest expense | $ 327 | $ 296 | $ 278 | |||||||
Number of debt instruments | debt_instrument | 2 | |||||||||
Mutual Insurers Holding Company [Member] | Notes Payable, Other Payables | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, stated interest rate (percentage) | 4.60% | |||||||||
800 Superior LLC | State and Local Government of Ohio | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term of debt instrument (in years) | 15 years | |||||||||
800 Superior LLC | State and Local Government of Ohio | Notes Payable, Other Payables | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term of debt instrument (in years) | 15 years | |||||||||
Interest rate (in percentage) | 2.00% |
Debt (Funds at Lloyd's Facility
Debt (Funds at Lloyd's Facility) (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | Nov. 25, 2014USD ($) | Nov. 25, 2014GBP (£) | |
Debt Instrument [Line Items] | ||||
Debt instrument, secured by a collateral, percentage | 35.00% | 35.00% | ||
ING Bank, N.V. [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage of face amount | 1 | 1 | ||
Letter of Credit | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of Credit Limit | $ 139,060,000 | |||
Letter of Credit | ING Bank, N.V. [Member] | ||||
Debt Instrument [Line Items] | ||||
Letters of Credit Limit | $ 695,920,000 | £ 515,000,000 | ||
Fee payable on secured portion of debt, percentage | 0.50% | |||
Fee payable on unsecured portion of debt, percentage | 1.15% | |||
Unused capacity, commitment fee percentage | 0.35% | |||
Letter of Credit | ING Bank, N.V. [Member] | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of Credit Limit | $ 236,478,000 | £ 175,000,000 | ||
Letter of Credit | Lloyds | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of Credit Limit | 614,842,000 | 455,000,000 | ||
Letter of Credit | Bank of Nova Scotia [Member] | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of Credit Limit | 216,208,000 | 160,000,000 | ||
Letter of Credit | Bank of Montreal [Member] | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of Credit Limit | $ 162,156,000 | £ 120,000,000 |
Debt (Other Letters of Credit a
Debt (Other Letters of Credit and Stand-by letter of credit) (Details) - 12 months ended Dec. 31, 2017 € in Thousands | USD ($) | EUR (€) | EUR (€) |
Citigroup [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense | $ 484,000 | ||
Letter of Credit | Line of Credit | |||
Debt Instrument [Line Items] | |||
Letters of Credit Limit | 139,060,000 | ||
Letters of credit outstanding | 139,060,000 | ||
Letter of Credit | ING Bank N.V. and Deutsche Bank Netherlands N.V. | Line of Credit | |||
Debt Instrument [Line Items] | |||
Letters of Credit Limit | 104,084,000 | € 86,716 | |
Letters of credit outstanding | 72,228,000 | € 60,181 | |
Interest expense | 632,000 | ||
Liabilities assumed | 510,000 | € 425 | |
Comerica Bank | Letter of Credit | Line of Credit | |||
Debt Instrument [Line Items] | |||
Letters of Credit Limit | 75,000,000 | ||
Letters of credit outstanding | $ 42,900,000 |
Reinsurance (Reinsurance Tables
Reinsurance (Reinsurance Tables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reinsurance Retention Policy [Line Items] | ||||||||||||
Minimum surplus required to retain reinsurer | $ 500,000 | $ 500,000 | ||||||||||
Effect of reinsurance with unrelated companies | ||||||||||||
Direct Premiums Written | 8,250,524 | $ 7,727,657 | $ 6,473,338 | |||||||||
Direct Premiums Earned | 7,710,610 | 7,370,202 | 5,994,848 | |||||||||
Assumed Premiums Written | 184,106 | 221,613 | 326,199 | |||||||||
Assumed Premiums Earned | 248,457 | 256,182 | 369,480 | |||||||||
Ceded Premiums Written | (3,282,114) | (3,097,943) | (2,537,609) | |||||||||
Ceded Premiums Earned | (2,902,969) | (2,958,419) | (2,343,087) | |||||||||
Net written premiums | 5,152,516 | 4,851,327 | 4,261,928 | |||||||||
Net earned premiums | 1,259,980 | $ 1,192,877 | $ 1,380,709 | $ 1,222,532 | $ 1,215,695 | $ 1,196,236 | $ 1,181,752 | $ 1,074,282 | 5,056,098 | 4,667,965 | 4,021,241 | |
Loss and loss adjustment expense reserves | (12,138,768) | (10,140,716) | (12,138,768) | (10,140,716) | (7,208,367) | $ (5,664,205) | ||||||
Unearned premiums | (5,279,239) | (4,880,066) | (5,279,239) | (4,880,066) | ||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Reinsurance, commutations included in ceded reinsurance treaties | 1,824 | 4,746 | ||||||||||
Assumed | ||||||||||||
Effect of reinsurance with unrelated companies | ||||||||||||
Loss and loss adjustment expense reserves | (1,038,834) | (890,053) | (1,038,834) | (890,053) | (692,447) | |||||||
Unearned premiums | (68,422) | (132,840) | (68,422) | (132,840) | (167,409) | |||||||
Loss and LAE expense incurred | (227,291) | (461,556) | (352,362) | |||||||||
Ceded | ||||||||||||
Effect of reinsurance with unrelated companies | ||||||||||||
Loss and loss adjustment expense reserves | (4,641,387) | (3,873,786) | (4,641,387) | (3,873,786) | (2,643,443) | |||||||
Unearned premiums | $ (2,137,347) | $ (1,994,092) | (2,137,347) | (1,994,092) | (1,530,551) | |||||||
Loss and LAE expense incurred | (2,245,191) | $ (1,776,538) | $ (1,497,558) | |||||||||
2017 International Reinsurance Programs | Casualty/Professional, Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 15,000 | |||||||||||
2017 International Reinsurance Programs | Casualty/Professional, Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 3,000 | |||||||||||
Coverage, percentage | 1200000000.00% | |||||||||||
2017 International Reinsurance Programs | Property, Catastrophe Excess of Loss (AEL and ATL) | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 78,000 | |||||||||||
2017 International Reinsurance Programs | Property, Catastrophe Excess of Loss (AEL and ATL) | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 6,000 | |||||||||||
Coverage, percentage | 7200000000.00% | |||||||||||
2017 International Reinsurance Programs | Property, Per Risk Excess of Loss (AEL) | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 6,400 | |||||||||||
2017 International Reinsurance Programs | Property, Per Risk Excess of Loss (AEL) | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 640 | |||||||||||
Coverage, percentage | 576000000.00% | |||||||||||
2017 International Reinsurance Programs | Property, Per Risk Excess of Loss (ATL) | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 10,000 | |||||||||||
2017 International Reinsurance Programs | Property, Per Risk Excess of Loss (ATL) | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 2,500 | |||||||||||
Coverage, percentage | 750000000.00% | |||||||||||
2017 International Reinsurance Programs | Surety, Excess of Loss and Quota Share (AEL) | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 39,550 | |||||||||||
2017 International Reinsurance Programs | Surety, Excess of Loss and Quota Share (AEL) | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 5,650 | |||||||||||
Coverage, percentage | 3390000000.00% | |||||||||||
2017 International Reinsurance Programs | Accident and Health, Excess of Loss (AEL) | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 25,600 | |||||||||||
2017 International Reinsurance Programs | Accident and Health, Excess of Loss (AEL) | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 800 | |||||||||||
Coverage, percentage | 2496000000.00% | |||||||||||
2017 International Reinsurance Programs | Car Care, Excess of Loss (AEL) | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 65,000 | |||||||||||
2017 International Reinsurance Programs | Car Care, Excess of Loss (AEL) | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 1,000 | |||||||||||
Coverage, percentage | 6400000000.00% | |||||||||||
2017 International Reinsurance Programs | Medical Malpractice, Quota Share (AEL) | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 13,000 | |||||||||||
2017 International Reinsurance Programs | Medical Malpractice, Quota Share (AEL) | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 10,400 | |||||||||||
Coverage, percentage | 1300000000.00% | |||||||||||
2017 International Reinsurance Programs | Personal Accident, Excess of Loss (ATL) | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 13,000 | |||||||||||
2017 International Reinsurance Programs | Personal Accident, Excess of Loss (ATL) | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 7,800 | |||||||||||
Coverage, percentage | 1300000000.00% | |||||||||||
2017 International Reinsurance Programs | Personal Accident, Excess of Loss (ATL) | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 60,000 | |||||||||||
2017 International Reinsurance Programs | Personal Accident, Excess of Loss (ATL) | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 2,000 | |||||||||||
Coverage, percentage | 5800000000.00% | |||||||||||
2017 International Reinsurance Programs | Pecuniary Risks | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 49,000 | |||||||||||
2017 International Reinsurance Programs | Pecuniary Risks | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 3,000 | |||||||||||
Coverage, percentage | 4600000000.00% | |||||||||||
2017 Domestic Reinsurance Programs | Workers’ Compensation, Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 710,000 | |||||||||||
2017 Domestic Reinsurance Programs | Workers’ Compensation, Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 10,000 | |||||||||||
Coverage, percentage | 70000000000.00% | |||||||||||
2017 Domestic Reinsurance Programs | Property, Catastrophe Excess of Loss (AEL and ATL) | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 830,000 | |||||||||||
2017 Domestic Reinsurance Programs | Property, Catastrophe Excess of Loss (AEL and ATL) | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 20,000 | |||||||||||
Coverage, percentage | 81000000000.00% | |||||||||||
2017 Domestic Reinsurance Programs | Surety, Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 30,000 | |||||||||||
2017 Domestic Reinsurance Programs | Surety, Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 500 | |||||||||||
Coverage, percentage | 2950000000.00% | |||||||||||
2017 Domestic Reinsurance Programs | Casualty/Professional, Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 50,000 | |||||||||||
2017 Domestic Reinsurance Programs | Casualty/Professional, Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 3,000 | |||||||||||
Coverage, percentage | 4700000000.00% | |||||||||||
2017 Domestic Reinsurance Programs | Umbrella, Quota Share | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 10,000 | |||||||||||
2017 Domestic Reinsurance Programs | Umbrella, Quota Share | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 1,500 | |||||||||||
Coverage, percentage | 850000000.00% | |||||||||||
2017 Domestic Reinsurance Programs | Equipment Breakdown, Quota Share | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 100,000 | |||||||||||
2017 Domestic Reinsurance Programs | Equipment Breakdown, Quota Share | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 0 | |||||||||||
Coverage, percentage | 10000000000.00% | |||||||||||
2017 Domestic Reinsurance Programs | Property, Per Risk Excess of Loss (AEL) | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 36,000 | |||||||||||
2017 Domestic Reinsurance Programs | Property, Per Risk Excess of Loss (AEL) | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $ 3,000 | |||||||||||
Coverage, percentage | 3300000000.00% |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||||||||
Loss and loss adjustment expense reserves | $ 12,138,768 | $ 10,140,716 | $ 12,138,768 | $ 7,208,367 | $ 5,664,205 | |||||||
Prepaid reinsurance premium | 2,137,347 | 1,994,092 | 2,137,347 | |||||||||
Interest expense | 27,562 | $ 22,873 | $ 24,229 | $ 23,601 | 23,616 | $ 22,124 | $ 17,912 | $ 15,874 | ||||
Deferred gain on retroactive reinsurance | 330,029 | $ 0 | 330,029 | |||||||||
Adverse Loss Development Cover Agreement | ||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||||||||
Coverage, amounts | 400,000 | |||||||||||
Loss and loss adjustment expense reserves | $ 6,587,230 | |||||||||||
Payments for reinsurance | $ 675,000 | |||||||||||
Prepaid reinsurance premium | 50,000 | 50,000 | ||||||||||
Interest expense | $ 4,785 | |||||||||||
Reinsurance, incremental excess collateral deposit | $ 100,000 | $ 100,000 | ||||||||||
Reinsurance, net adverse loss development | 400,000 | |||||||||||
Maximum | Adverse Loss Development Cover Agreement | ||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||||||||
Stated and Limits | 5,962,230 | |||||||||||
Minimum | Adverse Loss Development Cover Agreement | ||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||||||||
Stated and Limits | $ 1,025,000 |
Related Party Transactions (Mai
Related Party Transactions (Maiden) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
Apr. 30, 2011 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2007 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 01, 2017 | Jul. 01, 2016 | Jun. 30, 2008 | Apr. 30, 2008 | Dec. 31, 2007 | |
Related Party Transaction [Line Items] | ||||||||||||||||||
Note payable on collateral loan – related party | $ 167,975 | $ 167,975 | $ 167,975 | $ 167,975 | ||||||||||||||
Service, fee and other revenues | 125,758 | $ 180,505 | $ 168,446 | $ 137,496 | $ 150,999 | $ 133,857 | $ 124,305 | $ 128,805 | 612,205 | 537,966 | $ 428,143 | |||||||
NGHC | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Service, fee and other revenues | 2,136 | 1,385 | 583 | |||||||||||||||
Assets managed under asset management agreement | $ 3,276,192 | 3,276,192 | ||||||||||||||||
Investment management fee | $ 10,673 | $ 3,613 | 2,676 | |||||||||||||||
NGHC | Minimum | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Asset management services fee percentage | 0.15% | 0.15% | ||||||||||||||||
Average value of assets under management | $ 1,000,000 | |||||||||||||||||
NGHC | Maximum | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Asset management services fee percentage | 0.20% | 0.20% | ||||||||||||||||
Average value of assets under management | $ 1,000,000 | |||||||||||||||||
Maiden Reinsurance Company | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Percentage of capital stock | 8.20% | 8.20% | ||||||||||||||||
Ceding commission percentage of ceded written premiums | 5.00% | |||||||||||||||||
Percentage of premiums | 40.00% | 40.00% | 40.00% | 20.00% | 32.50% | |||||||||||||
Term of reinsurance agreement | 1 year | |||||||||||||||||
Reinsurance ceded profit ratio | 50.00% | |||||||||||||||||
Assets managed under asset management agreement | $ 4,974,676 | $ 4,974,676 | ||||||||||||||||
Investment management fee | $ 7,474 | 6,057 | ||||||||||||||||
Maiden Reinsurance Company | Minimum | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Asset management services fee percentage | 0.15% | 0.15% | ||||||||||||||||
Maiden Reinsurance Company | Maximum | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Reinsurance ceded loss ratio | 65.00% | |||||||||||||||||
Asset management services fee percentage | 0.20% | 0.20% | ||||||||||||||||
Average value of assets under management | $ 1,000,000 | |||||||||||||||||
Maiden Reinsurance Company | Chief Executive Officer | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Percentage of capital stock | 7.70% | 7.70% | ||||||||||||||||
Maiden | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Percentage of reinsurance brokerage commissions | 1.25% | 1.25% | ||||||||||||||||
Service, fee and other revenues | $ 24,177 | $ 26,091 | 24,130 | |||||||||||||||
Investment management fee | 6,925 | |||||||||||||||||
AII | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Percent of Amount Assumed to Net | 40.00% | |||||||||||||||||
Percentage of reinsurance related losses assumed | 40.00% | |||||||||||||||||
Ceding commission percentage of ceded written premiums | 31.00% | 31.00% | ||||||||||||||||
Extended service agreement term | 3 years | |||||||||||||||||
Termination notice period | 30 days | |||||||||||||||||
Increase (decrease) in stockholders equity, percentage | (50.00%) | |||||||||||||||||
AII | Retail Business | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Ceding commission percentage of ceded written premiums | 34.375% | |||||||||||||||||
AII | Maiden | Minimum | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Reinsurance ceded loss ratio | 81.50% | 81.50% | ||||||||||||||||
AII | Maiden | Maximum | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Reinsurance ceded loss ratio | 95.00% | 95.00% | ||||||||||||||||
AmTrust Europe Ltd | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Percent of Amount Assumed to Net | 20.00% | |||||||||||||||||
Percentage of reinsurance related losses assumed | 20.00% | |||||||||||||||||
Maiden Reinsurance Company | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Note payable on collateral loan – related party | $ 167,975 | $ 167,975 | $ 34,240 | $ 20,192 | $ 113,542 | |||||||||||||
Maiden Reinsurance Company | AII | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Interest expense on collateral loan | 3,447 | $ 2,360 | $ 1,865 | |||||||||||||||
Collateralized Agreements | $ 3,552,623 | $ 3,552,623 |
Related Party Transactions (Res
Related Party Transactions (Results of Operations Related to Reinsurance Agreements) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||||||||||
Premium written - ceded | $ (3,282,114) | $ (3,097,943) | $ (2,537,609) | ||||||||
Change in unearned premium - ceded | (96,418) | (183,362) | (240,687) | ||||||||
Earned premium - ceded | (2,902,969) | (2,958,419) | (2,343,087) | ||||||||
Loss and loss adjustment expense | $ 953,548 | $ 1,266,118 | $ 1,024,478 | $ 840,334 | $ 831,765 | $ 811,048 | $ 784,393 | $ 715,073 | 4,084,478 | 3,142,279 | 2,688,118 |
Maiden | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Premium written - ceded | (2,044,770) | (2,012,452) | (1,899,148) | ||||||||
Change in unearned premium - ceded | 38,433 | 66,938 | 182,967 | ||||||||
Earned premium - ceded | (2,006,337) | (1,945,514) | (1,716,181) | ||||||||
Ceding commission on premium written | 649,280 | 654,140 | 564,156 | ||||||||
Ceding commission - deferred | (39,959) | (54,631) | (53,364) | ||||||||
Ceding commission earned | 609,321 | 599,509 | 510,792 | ||||||||
Loss and loss adjustment expense | $ 1,561,261 | $ 1,312,347 | $ 1,116,308 |
Related Party Transactions (NGH
Related Party Transactions (NGHC) (Details) - USD ($) | Sep. 13, 2017 | Jun. 09, 2017 | Feb. 22, 2012 | Jun. 30, 2017 | Aug. 31, 2011 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 31, 2017 |
Related Party Transaction [Line Items] | |||||||||||||||||
Net realized gains on investments | $ 63,135,000 | $ 36,478,000 | $ 8,117,000 | ||||||||||||||
Equity in earnings of unconsolidated subsidiaries – related party | 73,488,000 | 15,626,000 | 25,385,000 | ||||||||||||||
Service, fee and other revenues | $ 125,758,000 | $ 180,505,000 | $ 168,446,000 | $ 137,496,000 | $ 150,999,000 | $ 133,857,000 | $ 124,305,000 | $ 128,805,000 | $ 612,205,000 | 537,966,000 | 428,143,000 | ||||||
NGHC | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Sale of stock, number of shares issued in transaction | 10,586,000 | 10,586,000 | |||||||||||||||
Sale of stock, price per share (usd per share) | $ 20 | ||||||||||||||||
Sale of stock, price per share, discount (in percentage) | 8.30% | ||||||||||||||||
Net realized gains on investments | $ 68,425,000 | ||||||||||||||||
Percentage of ownership interests (in percentage) | 11.50% | 1.60% | 1.60% | 12.00% | |||||||||||||
Equity method investments, fair value disclosure | $ 1,709,430 | $ 1,709,430 | |||||||||||||||
Equity in earnings of unconsolidated subsidiaries – related party | 5,063,000 | ||||||||||||||||
Gross premium written, percentage | 1.25% | ||||||||||||||||
Cost plus, percentage | 20.00% | ||||||||||||||||
Technology services fee income | 44,611,000 | 46,113,000 | 35,896,000 | ||||||||||||||
Assets managed under asset management agreement | $ 3,276,192,000 | 3,276,192,000 | |||||||||||||||
Investment management fee | $ 10,673,000 | 3,613,000 | 2,676,000 | ||||||||||||||
Aggregate purchase price | $ 7,500,000 | ||||||||||||||||
Contribution towards payment for guaranties, percentage | 50.00% | 50.00% | |||||||||||||||
Service, fee and other revenues | $ 2,136,000 | 1,385,000 | 583,000 | ||||||||||||||
Maximum | NGHC | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Asset management services fee percentage | 0.20% | 0.20% | |||||||||||||||
Average value of assets under management | $ 1,000,000,000 | ||||||||||||||||
Minimum | NGHC | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Asset management services fee percentage | 0.15% | 0.15% | |||||||||||||||
Average value of assets under management | $ 1,000,000,000 | ||||||||||||||||
800 Superior LLC | NGHC | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Proceeds from collection of lease receivables | 2,811,000 | $ 2,733,000 | $ 2,593,000 | ||||||||||||||
4455 LBJ Freeway, LLC | NGHC | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Aggregate purchase price | 21,050,000 | ||||||||||||||||
Percentage of ownership interest (percentage) | 2.00% | 2.00% | |||||||||||||||
Collaborative arrangement profit share percentage | 51.00% | ||||||||||||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | Personal Lines Policy Management System [Member] | NGHC | AmTrust North America | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Consideration receivable | $ 200,000,000 | ||||||||||||||||
Licenses revenue | 9,267,000 | ||||||||||||||||
Implementation costs receivable | $ 5,000,000 | ||||||||||||||||
Gain (loss) on disposal | 186,755,000 | ||||||||||||||||
Financing receivable, gross | $ 130,614,000 | $ 130,614,000 |
Related Party Transactions (Sig
Related Party Transactions (Significant transaction with ACP) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 21, 2016 | |
Related Party Transaction [Line Items] | ||||
Revolving credit facility | $ 130,000 | $ 130,000 | ||
Interest income | 4,654 | 7,593 | $ 8,701 | |
Acp Re Ltd | ||||
Related Party Transaction [Line Items] | ||||
Loan and related interest receivable | $ 128,508 | $ 126,298 | ||
AII | Acp Re Ltd | ||||
Related Party Transaction [Line Items] | ||||
Revolving credit facility | $ 250,000 | |||
Percentage of ownership interest (percentage) | 99.90% | |||
Debt instrument, stated interest rate (percentage) | 3.70% | |||
Debt instrument, interest rate, stated percentage, paid in kind, maximum | 1.20% | |||
Related party transaction, asset to be maintained, percentage of the value | 115.00% | |||
Related party transaction, change in ownership, percentage | 50.00% | |||
AII | NG Re Ltd. [Member] | Acp Re Ltd | ||||
Related Party Transaction [Line Items] | ||||
Debt instrument, stated interest rate (percentage) | 2.00% |
Related Party Transactions (Oth
Related Party Transactions (Other Related Party Transactions) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Aug. 31, 2015USD ($) | Feb. 28, 2015USD ($) | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | May 25, 2017$ / shares | ||
Related Party Transaction [Line Items] | |||||||
Lease payments | $ 28,200 | $ 28,207 | $ 20,336 | ||||
Equity in earnings of unconsolidated subsidiary – (related parties) | [1] | 73,488 | 17,224 | 25,385 | |||
Fifty Nine Maiden Lane Associates Llc | |||||||
Related Party Transaction [Line Items] | |||||||
Lease payments | 1,863 | 1,962 | 1,894 | ||||
Thirty Three West Monroe Associates Llc | |||||||
Related Party Transaction [Line Items] | |||||||
Lease payments | 197 | 597 | |||||
North Dearborn | |||||||
Related Party Transaction [Line Items] | |||||||
Payments to acquire LP interests | $ 9,700 | ||||||
Ownership interest | 45.00% | ||||||
Equity in earnings of unconsolidated subsidiary – (related parties) | (4,735) | 842 | 755 | ||||
Illinois Center | |||||||
Related Party Transaction [Line Items] | |||||||
Lease payments | $ 1,357 | 656 | |||||
Term of contract | 10 years | ||||||
NGHC | Illinois Center | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership interest | 37.50% | ||||||
Acp Re Ltd | Illinois Center | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership interest | 15.00% | ||||||
NA Advisors GP LLC | North Dearborn | |||||||
Related Party Transaction [Line Items] | |||||||
Payments to acquire LP interests | $ 2,200 | ||||||
NA Advisors GP LLC | Illinois Center | |||||||
Related Party Transaction [Line Items] | |||||||
Payments to acquire LP interests | $ 53,715 | ||||||
General partner, ownership interest | 10.00% | ||||||
Profit interest, percentage | 0.10 | ||||||
Equity in earnings of unconsolidated subsidiary – (related parties) | $ (16,617) | 2,942 | $ 1,292 | ||||
Other investments: | Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure | |||||||
Related Party Transaction [Line Items] | |||||||
Carrying amount | 56,601 | 72,328 | |||||
Maximum exposure to loss | $ 56,601 | $ 72,328 | |||||
Private Placement | Director | |||||||
Related Party Transaction [Line Items] | |||||||
Shares issued during the period (in shares) | shares | 24,096,384 | ||||||
Shares issued, price per share (usd per share) | $ / shares | $ 12.45 | ||||||
Net proceeds from this offering, including over allotment | $ 300,000 | ||||||
[1] | 2017 amounts relate to the sale of shares of National General Holding Corp. See Note 15 for more information. |
Acquisition Costs and Other 133
Acquisition Costs and Other Underwriting Expenses (Summary of Components of Acquisition Costs and Other Underwriting Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||||||||||
Policy acquisition expenses | $ 1,006,468 | $ 761,814 | $ 662,085 | ||||||||
Other insurance general and administrative expense | 616,039 | 468,354 | 331,486 | ||||||||
Total acquisition costs and other underwriting expenses | $ 584,011 | $ 337,086 | $ 373,195 | $ 328,215 | $ 359,232 | $ 303,992 | $ 294,476 | $ 272,468 | $ 1,622,507 | $ 1,230,168 | $ 993,571 |
Share Based Compensation (Narra
Share Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation | $ 26,583 | $ 23,286 | $ 22,763 | |
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 44,975 | $ 39,111 | ||
Weighted average grant date fair value of options granted (in usd per share) | $ 6.03 | $ 11.31 | ||
Weighted average remaining life for options grants outstanding (in years) | 2 years 7 months 6 days | 2 years 6 months | ||
Shares exercisable (in shares) | 1,400,000 | 2,200,000 | ||
Weighted average exercise price for the exercisable shares (in usd per share) | $ 8.13 | $ 6.83 | ||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 58,695 | |||
Restricted Stock Units (RSUs) | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based award, vesting period (in years) | 1 year | |||
Restricted Stock Units (RSUs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based award, vesting period (in years) | 4 years | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value of stock options exercised | $ 12,261 | $ 10,128 | $ 26,444 | |
Intrinsic value of stock options outstanding | 4,706 | 45,812 | 66,300 | |
Intrinsic value of stock options exercisable | 4,706 | 45,506 | 64,705 | |
Stock option exercise and other | 4,750 | 1,909 | 4,907 | |
Excess tax benefit from award | $ (448) | $ 5,930 | $ 10,211 | |
Restricted Stock Units and Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average remaining life for options grants outstanding (in years) | 1 year 7 months 6 days | 1 year 4 months 24 days | ||
Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for stock award, maximum (in shares) | 14,630,136 | |||
Common stock remaining shares available for grants (in shares) | 3,700,000 | |||
Omnibus Incentive Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period (in years) | 10 years | |||
Period to exercise vested options upon termination of employment (in months) | 3 months |
Share Based Compensation (Sched
Share Based Compensation (Schedule of Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | |||
Outstanding at beginning of period (in shares) | 2,305,351 | 2,783,880 | 3,868,740 |
Granted (in shares) | 0 | 10,000 | 100,000 |
Exercised (in shares) | (881,097) | (474,657) | (1,109,712) |
Forfeited (in shares) | 0 | (13,872) | (75,148) |
Outstanding end of period (in shares) | 1,424,254 | 2,305,351 | 2,783,880 |
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in usd per share) | $ 7.54 | $ 6.99 | $ 5.80 |
Granted (in usd per share) | 0 | 25.91 | 28.04 |
Exercised (in usd per share) | 5.67 | 4.17 | 4.59 |
Forfeited (in usd per share) | 0 | 24.69 | 9.17 |
Outstanding end of period (in usd per share) | $ 8.71 | $ 7.54 | $ 6.99 |
Share Based Compensation (Fair
Share Based Compensation (Fair Value Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation [Abstract] | ||
Volatility (in percentage) | 30.04% | 40.81% |
Risk-free interest rate (in percentage) | 1.94% | 1.97% |
Weighted average expected lives (in years) | 6 years | 6 years 3 months |
Dividend rate (in percentage) | 2.62% | 1.84% |
Forfeiture rate (in percentage) | 0.50% | 0.50% |
Share Based Compensation (Summa
Share Based Compensation (Summary of Restricted Stock and RSU Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock and Restricted Stock Unit | |||
Shares or Units | |||
Non-vested at beginning of period (in shares) | 1,965,011 | 1,853,516 | 2,611,022 |
Granted (in shares) | 2,792,855 | 994,289 | 476,942 |
Vested (in shares) | (741,576) | (832,524) | (1,200,800) |
Forfeited (in shares) | (114,012) | (50,270) | (33,648) |
Non-vested at end of period (in shares) | 3,902,278 | 1,965,011 | 1,853,516 |
Weighted Average Grant Date Fair Value | |||
Non-vested at beginning of period (in usd per share) | $ 24.38 | $ 20.54 | $ 16.70 |
Granted (in usd per share) | 12.75 | 25.91 | 29.27 |
Vested (in usd per share) | 22.76 | 17.65 | 15.66 |
Forfeited (in usd per share) | 19.60 | 24.19 | 20.95 |
Non-vested at end of period (in usd per share) | $ 16.51 | $ 24.38 | $ 20.54 |
Performance Shares (PSU) | |||
Shares or Units | |||
Non-vested at beginning of period (in shares) | 680,597 | 752,466 | 549,670 |
Granted (in shares) | 653,125 | 198,881 | 373,628 |
Vested (in shares) | (252,221) | (234,358) | (155,842) |
Forfeited (in shares) | (67,262) | (36,392) | (14,990) |
Non-vested at end of period (in shares) | 1,014,239 | 680,597 | 752,466 |
Weighted Average Grant Date Fair Value | |||
Non-vested at beginning of period (in usd per share) | $ 25.57 | $ 24.58 | $ 19.42 |
Granted (in usd per share) | 13.17 | 26.16 | 29.93 |
Vested (in usd per share) | 23.49 | 22.89 | 18.86 |
Forfeited (in usd per share) | 25.16 | 25.64 | 28.13 |
Non-vested at end of period (in usd per share) | $ 18.13 | $ 25.57 | $ 24.58 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current expense (benefit): | |||||||||||
Federal | $ (11,415) | $ (13,084) | $ 74,967 | ||||||||
Foreign | 37,360 | 46,020 | 20,442 | ||||||||
Total current tax expense | 25,945 | 32,936 | 95,409 | ||||||||
Deferred expense (benefit): | |||||||||||
Federal | (131,890) | 67,154 | (71,446) | ||||||||
Foreign | 6,582 | (14,783) | 14,983 | ||||||||
Total deferred tax (benefit) expense | (125,308) | 52,371 | (56,463) | ||||||||
Total income tax (benefit) expense | $ (38,404) | $ (62,588) | $ (19,727) | $ 21,356 | $ 19,355 | $ 23,185 | $ 23,807 | $ 18,960 | $ (99,363) | $ 85,307 | $ 38,946 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Effective Tax Rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
(Loss) income before income taxes and equity in earnings of unconsolidated subsidiaries | $ (507,730) | $ 500,051 | $ 471,194 | ||||||||
Tax at federal statutory rate of 35% | (177,706) | 175,018 | 164,918 | ||||||||
Tax effects resulting from: | |||||||||||
Tax reform | 72,534 | 0 | 0 | ||||||||
Permanent adjustments | 1,218 | (5,091) | (121,923) | ||||||||
Foreign rate differential | (27,120) | (56,637) | (98,059) | ||||||||
Adjustments to prior year taxes | (2,723) | (17,504) | (68,075) | ||||||||
Valuation allowance | 32,954 | (12,874) | 149,842 | ||||||||
Other, net | 1,480 | 2,395 | 12,243 | ||||||||
Total income tax (benefit) expense | $ (38,404) | $ (62,588) | $ (19,727) | $ 21,356 | $ 19,355 | $ 23,185 | $ 23,807 | $ 18,960 | $ (99,363) | $ 85,307 | $ 38,946 |
Effective tax rate (in percentage) | 19.60% | 17.10% | 8.30% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 280,271 | $ 224,918 |
Unearned premiums | 86,215 | 150,167 |
Ceding commission | 0 | 146,503 |
Loss and LAE reserves | 48,575 | 73,873 |
Other | 114,851 | 109,408 |
Deferred revenue | 46,455 | 61,780 |
Bad debt | 28,108 | 25,489 |
Deferred compensation | 2,004 | 6,655 |
Total gross deferred tax assets | 606,479 | 798,793 |
Valuation allowance | (195,146) | (142,462) |
Total deferred tax assets | 411,333 | 656,331 |
Deferred tax liabilities: | ||
Deferred acquisition costs | (145,600) | (384,656) |
Equity results which cannot be liquidated tax free | (11,838) | (57,614) |
Intangible assets | (67,008) | (89,133) |
Depreciation | (24,224) | (49,411) |
Other | (3,118) | (3,489) |
Equalization reserves | (13,307) | (15,890) |
Accrual market discount | (4,853) | (10,144) |
Cash surrender value on insurance | (1,563) | (2,299) |
Unrealized gain on investments | (22,978) | (27,663) |
Total deferred tax liabilities | (294,489) | (640,299) |
Deferred tax asset, net | $ 116,844 | $ 16,032 |
Income Taxes (Open Tax Years) (
Income Taxes (Open Tax Years) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
2012 | Ireland | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2,012 |
2013 | USA | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2,013 |
2013 | Ireland | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2,013 |
2014 | USA | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2,014 |
2014 | Ireland | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2,014 |
2015 | USA | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2,015 |
2015 | Ireland | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2,015 |
2016 | USA | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2,016 |
2016 | United Kingdom | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2,016 |
2016 | Ireland | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2,016 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Adjustments for investments | $ 12,726,000 | ||
Reinvestment assertion | 5,138,000 | ||
Return adjustment from transfer pricing | $ 73,420,000 | ||
Due to change in company ownership | $ 5,112,000 | ||
Provisional income taxes | $ 72,534,000 | ||
Operating loss carryforwards, limitation on use per year | 9,123,000 | ||
Operating loss carryforwards, valuation allowance | 195,146,000 | 142,462,000 | |
Amount of unrecognized deferred tax liability, undistributed earnings | 400,698,000 | $ 315,712,000 | |
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 13,104,000 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 991,862,000 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
USA | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, cost | $ 10,736 | $ 8,363 | $ 6,693 |
Europe | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, cost | $ 4,986 | $ 4,193 | $ 3,815 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net (loss) income attributable to AmTrust common stockholders | $ (268,959) | $ (174,675) | $ 5,829 | $ 22,632 | $ 71,355 | $ 80,650 | $ 127,156 | $ 83,978 | $ (415,173) | $ 363,139 | $ 419,115 |
Less: Net income attributable to participating securities and redeemable non-controlling interest | 0 | 0 | 314 | ||||||||
Net (loss) income attributable to AmTrust common stockholders | $ (415,173) | $ 363,139 | $ 418,801 | ||||||||
Denominator: | |||||||||||
Weighted average common shares outstanding – basic (in shares) | 185,961 | 172,554 | 165,042 | ||||||||
Plus: Dilutive effect of stock options, convertible debt, other (in shares) | 0 | 1,991 | 3,318 | ||||||||
Weighted average common shares outstanding – dilutive (in shares) | 185,961 | 174,545 | 168,360 | ||||||||
Net (loss) income per AmTrust common shares – basic (in dollars per share) | $ (1.50) | $ (0.89) | $ 0.03 | $ 0.13 | $ 0.42 | $ 0.47 | $ 0.73 | $ 0.48 | $ (2.23) | $ 2.10 | $ 2.54 |
Net (loss) income per AmTrust common shares - diluted (in dollars per share) | $ (1.50) | $ (0.89) | $ 0.03 | $ 0.13 | $ 0.41 | $ 0.47 | $ 0.73 | $ 0.47 | $ (2.23) | $ 2.08 | $ 2.49 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands | Feb. 02, 2016 | Mar. 19, 2015USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | Mar. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2017USD ($)directorDividend_period$ / sharesshares | Dec. 31, 2016$ / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 15, 2015shares | Dec. 14, 2015shares |
Class of Stock [Line Items] | |||||||||
Stock split, conversion ratio | 2 | ||||||||
Underwriting discount and commissions | $ | $ 5,989 | $ 9,306 | $ 4,680 | ||||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | 150,000,000 | |||||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||
Liquidation per share (in usd per share) | $ / shares | $ 25 | $ 25 | $ 25 | $ 25 | |||||
Number of directors stockholders can elect if dividends are not declared | director | 2 | ||||||||
Number of dividend periods | Dividend_period | 6 | ||||||||
Pre-split Adjusted Shares [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued during the period (in shares) | 8,450,000 | ||||||||
Common stock | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued during the period (in shares) | 24,096,000 | 12,000 | 16,900,000 | ||||||
Net proceeds from this offering, including over allotment | $ | $ 487,087 | ||||||||
Underwriting discount and commissions | $ | $ 413 | ||||||||
Noncumulative Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend rate (in percentage) | 7.50% | 6.95% | 7.75% | ||||||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||
Liquidation per share (in usd per share) | $ / shares | $ 1,000 | $ 1,000 | |||||||
American Depository Shares | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued during the period (in shares) | 11,500,000 | 5,750,000 | |||||||
Net proceeds from this offering, including over allotment | $ | $ 176,511 | $ 278,194 | $ 139,070 | ||||||
Percentage of preferred share, per share (in percentage) | $ / shares | $ 0.025 | $ 0.025 | $ 0.025 | ||||||
Preferred stock | American Depository Shares | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued during the period (in shares) | 7,300,000 | ||||||||
Private Placement | Director | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued during the period (in shares) | 24,096,384 | ||||||||
Net proceeds from this offering, including over allotment | $ | $ 300,000 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 3,269,103 | ||
Other comprehensive income (loss) before reclassification | 215,954 | $ 85,037 | $ (255,274) |
Amounts reclassed from accumulated other comprehensive income (loss) | (62,841) | (30,715) | 4,918 |
Income tax benefit (expense) | (11,875) | (46,652) | 56,387 |
Other comprehensive income (loss), net of tax | 141,238 | 7,670 | (193,969) |
Ending balance | 3,189,803 | 3,269,103 | |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (125,722) | (133,392) | 60,577 |
Ending balance | 15,516 | (125,722) | (133,392) |
Foreign Currency Items | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (188,203) | (98,074) | (8,822) |
Other comprehensive income (loss) before reclassification | 143,386 | (90,129) | (89,252) |
Amounts reclassed from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Income tax benefit (expense) | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 143,386 | (90,129) | (89,252) |
Ending balance | (44,817) | (188,203) | (98,074) |
Unrealized Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 65,830 | (34,511) | 73,513 |
Other comprehensive income (loss) before reclassification | 70,796 | 177,395 | (171,109) |
Amounts reclassed from accumulated other comprehensive income (loss) | (62,841) | (30,715) | 4,918 |
Income tax benefit (expense) | (11,173) | (46,339) | 58,167 |
Other comprehensive income (loss), net of tax | (3,218) | 100,341 | (108,024) |
Ending balance | 62,612 | 65,830 | (34,511) |
Interest Rate Swap Hedge | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (172) | (700) | (1,321) |
Other comprehensive income (loss) before reclassification | 202 | 835 | 955 |
Amounts reclassed from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Income tax benefit (expense) | (62) | (307) | (334) |
Other comprehensive income (loss), net of tax | 140 | 528 | 621 |
Ending balance | (32) | (172) | (700) |
Net Benefit Plan Assets and Obligations Recognized in Stockholders' Equity | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (3,177) | (107) | (2,793) |
Other comprehensive income (loss) before reclassification | 1,570 | (3,064) | 4,132 |
Amounts reclassed from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Income tax benefit (expense) | (640) | (6) | (1,446) |
Other comprehensive income (loss), net of tax | 930 | (3,070) | 2,686 |
Ending balance | $ (2,247) | $ (3,177) | $ (107) |
New Market Tax Credit (Details)
New Market Tax Credit (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)Loans | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2012 | |
Schedule of Tax Credit [Line Items] | ||||
Proceeds from financing transaction | $ (160,270) | $ 160,270 | $ 0 | |
Percentage of qualified investment income that can be claimed at tax credit against their federal income taxes (in percentage) | 39.00% | |||
Parent, NGHC, KCDC and State and Local Government of Ohio | 800 Superior LLC | ||||
Schedule of Tax Credit [Line Items] | ||||
Proceeds from financing transaction | $ 19,400 | |||
State and Local Government of Ohio | 800 Superior LLC | ||||
Schedule of Tax Credit [Line Items] | ||||
Proceeds from financing transaction | $ 8,000 | |||
Number of loans | Loans | 2 | |||
Term of debt instrument (in years) | 15 years | |||
Community Development Entities (CDE) | 800 Superior LLC | ||||
Schedule of Tax Credit [Line Items] | ||||
Number of CDE | Loans | 2 | |||
Period to recapture (in years) | 7 years | |||
Key Community Development Corporation (KCDC) | 800 Superior LLC | ||||
Schedule of Tax Credit [Line Items] | ||||
Total benefit a company is entitled to receive | 51.00% | |||
NGHC | ||||
Schedule of Tax Credit [Line Items] | ||||
Percentage of ownership interest (in percentage) | 2.00% | |||
NGHC | 800 Superior LLC | ||||
Schedule of Tax Credit [Line Items] | ||||
Total benefit a company is entitled to receive | 49.00% | |||
Notes Payable, Other Payables | State and Local Government of Ohio | 800 Superior LLC | ||||
Schedule of Tax Credit [Line Items] | ||||
Term of debt instrument (in years) | 15 years | |||
Interest rate (in percentage) | 2.00% |
Commitment and Contingencies (L
Commitment and Contingencies (Lease Commitments) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Leases | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Number of Leases | Leases | 125 | ||
Lease Commitment | |||
2,018 | $ 26,237 | ||
2,019 | 23,110 | ||
2,020 | 21,100 | ||
2,021 | 18,251 | ||
2,022 | 14,931 | ||
2023 and Thereafter | 21,780 | ||
Future minimum lease payments | 125,409 | ||
Lease payments | $ 28,200 | $ 28,207 | $ 20,336 |
Commitment and Contingencies (E
Commitment and Contingencies (Employment Agreements) (Details) $ in Thousands | Dec. 31, 2017USD ($)employee |
Commitments and Contingencies Disclosure [Abstract] | |
Number of key executives and employees | employee | 69 |
2,018 | $ 21,513 |
2,019 | 9,247 |
2,020 | 4,500 |
2,021 | 945 |
Future minimum compensation payments | $ 36,205 |
Commitment and Contingencies (F
Commitment and Contingencies (Funding Commitments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Funding Commitment | $ 18,157 |
Statutory Financial Data, Ri151
Statutory Financial Data, Risk Based Capital and Dividend Restrictions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Total statutory net income | $ 61,554 | $ 121,316 | $ 105,500 |
Total statutory capital and surplus | 2,111,792 | 2,026,019 | |
Statutory capital and surplus, change in balances | 53,400 | 44,350 | |
Limit for cash dividends or distribution | 823,976 | 749,280 | |
Dividend received by the company | $ 586,000 | $ 18,019 | $ 63,649 |
AmTrust International Insurance Ltd. | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Percentage of enhanced capital requirement calculated | 25.00% | ||
Minimum margin of solvency required | $ 423,211 |
Segments (Results of Operations
Segments (Results of Operations of Business Segments) (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of operating segments | segment | 3 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross written premiums | $ 8,434,630 | $ 7,949,270 | $ 6,799,537 | ||||||||
Revenues [Abstract] | |||||||||||
Net written premiums | 5,152,516 | 4,851,327 | 4,261,928 | ||||||||
Change in unearned premiums | (96,418) | (183,362) | (240,687) | ||||||||
Net earned premiums | $ 1,259,980 | $ 1,192,877 | $ 1,380,709 | $ 1,222,532 | $ 1,215,695 | $ 1,196,236 | $ 1,181,752 | $ 1,074,282 | 5,056,098 | 4,667,965 | 4,021,241 |
Expenses: | |||||||||||
Loss and loss adjustment expenses | 953,548 | 1,266,118 | 1,024,478 | 840,334 | 831,765 | 811,048 | 784,393 | 715,073 | 4,084,478 | 3,142,279 | 2,688,118 |
Acquisition costs and other underwriting expenses | 584,011 | 337,086 | 373,195 | 328,215 | 359,232 | 303,992 | 294,476 | 272,468 | 1,622,507 | 1,230,168 | 993,571 |
Total expenses | 5,706,985 | 4,372,447 | 3,681,689 | ||||||||
Underwriting loss | (650,887) | 295,518 | 339,552 | ||||||||
Other income (loss): | |||||||||||
Service, fee and other revenues | 125,758 | 180,505 | 168,446 | 137,496 | 150,999 | 133,857 | 124,305 | 128,805 | 612,205 | 537,966 | 428,143 |
Investment income and realized gain on investments | 290,638 | 244,525 | 164,407 | ||||||||
Other expenses | (165,759) | (177,350) | (199,860) | (162,853) | (161,203) | (139,251) | (134,344) | (129,267) | (705,822) | (564,065) | (473,253) |
Interest expense | (98,265) | (79,526) | (60,626) | ||||||||
Foreign currency loss | (139,910) | (29,289) | 47,301 | ||||||||
Gain on life settlements | (2,444) | 46,147 | 19,844 | ||||||||
Acquisition gain on purchase | 0 | 48,775 | 5,826 | ||||||||
Gain on sale of policy management system | 186,755 | 0 | 0 | ||||||||
Benefit (provision) for income taxes | 38,404 | 62,588 | 19,727 | (21,356) | (19,355) | (23,185) | (23,807) | (18,960) | 99,363 | (85,307) | (38,946) |
Equity in earnings of unconsolidated subsidiaries – related party | 73,488 | 15,626 | 25,385 | ||||||||
Net (loss) income | $ (255,388) | $ (158,822) | $ 29,123 | $ 50,208 | $ 93,834 | $ 95,201 | $ 144,549 | $ 96,786 | (334,879) | 430,370 | 457,633 |
Small Commercial Business | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 2,306,660 | 2,203,469 | 1,886,880 | ||||||||
Specialty Risk and Extended Warranty | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 2,009,761 | 1,543,899 | 1,305,036 | ||||||||
Specialty Program | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 739,677 | 920,597 | 829,325 | ||||||||
Operating Segments | Small Commercial Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross written premiums | 4,342,627 | 4,020,184 | 3,320,650 | ||||||||
Revenues [Abstract] | |||||||||||
Net written premiums | 2,305,817 | 2,246,188 | 1,932,100 | ||||||||
Change in unearned premiums | 843 | (42,719) | (45,220) | ||||||||
Net earned premiums | 2,306,660 | 2,203,469 | 1,886,880 | ||||||||
Expenses: | |||||||||||
Loss and loss adjustment expenses | 1,812,925 | 1,460,503 | 1,234,089 | ||||||||
Acquisition costs and other underwriting expenses | 719,793 | 592,569 | 486,800 | ||||||||
Total expenses | 2,532,718 | 2,053,072 | 1,720,889 | ||||||||
Underwriting loss | (226,058) | 150,397 | 165,991 | ||||||||
Other income (loss): | |||||||||||
Service, fee and other revenues | 127,607 | 103,776 | 101,302 | ||||||||
Investment income and realized gain on investments | 117,951 | 100,788 | 72,796 | ||||||||
Other expenses | (181,699) | (142,632) | (115,560) | ||||||||
Interest expense | (50,592) | (40,218) | (29,607) | ||||||||
Foreign currency loss | 0 | 0 | 0 | ||||||||
Gain on life settlements | (1,258) | 23,338 | 9,691 | ||||||||
Acquisition gain on purchase | 455 | 5,826 | |||||||||
Gain on sale of policy management system | 0 | ||||||||||
Benefit (provision) for income taxes | 48,979 | (32,407) | (16,505) | ||||||||
Equity in earnings of unconsolidated subsidiaries – related party | 0 | 0 | 0 | ||||||||
Net (loss) income | (165,070) | 163,497 | 193,934 | ||||||||
Operating Segments | Specialty Risk and Extended Warranty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross written premiums | 3,115,487 | 2,521,324 | 2,158,921 | ||||||||
Revenues [Abstract] | |||||||||||
Net written premiums | 2,215,003 | 1,722,139 | 1,450,817 | ||||||||
Change in unearned premiums | (205,242) | (178,240) | (145,781) | ||||||||
Net earned premiums | 2,009,761 | 1,543,899 | 1,305,036 | ||||||||
Expenses: | |||||||||||
Loss and loss adjustment expenses | 1,533,554 | 1,023,470 | 882,306 | ||||||||
Acquisition costs and other underwriting expenses | 662,101 | 372,447 | 277,836 | ||||||||
Total expenses | 2,195,655 | 1,395,917 | 1,160,142 | ||||||||
Underwriting loss | (185,894) | 147,982 | 144,894 | ||||||||
Other income (loss): | |||||||||||
Service, fee and other revenues | 372,937 | 331,528 | 242,302 | ||||||||
Investment income and realized gain on investments | 114,160 | 89,981 | 59,035 | ||||||||
Other expenses | (130,354) | (89,454) | (75,131) | ||||||||
Interest expense | (36,296) | (25,224) | (19,250) | ||||||||
Foreign currency loss | (139,910) | (29,289) | 47,301 | ||||||||
Gain on life settlements | (903) | 14,637 | 6,301 | ||||||||
Acquisition gain on purchase | 48,320 | 0 | |||||||||
Gain on sale of policy management system | 0 | ||||||||||
Benefit (provision) for income taxes | 1,432 | (80,809) | (31,798) | ||||||||
Equity in earnings of unconsolidated subsidiaries – related party | 0 | 0 | 0 | ||||||||
Net (loss) income | (4,828) | 407,672 | 373,654 | ||||||||
Operating Segments | Specialty Program | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross written premiums | 976,516 | 1,407,762 | 1,319,966 | ||||||||
Revenues [Abstract] | |||||||||||
Net written premiums | 631,696 | 883,000 | 879,011 | ||||||||
Change in unearned premiums | 107,981 | 37,597 | (49,686) | ||||||||
Net earned premiums | 739,677 | 920,597 | 829,325 | ||||||||
Expenses: | |||||||||||
Loss and loss adjustment expenses | 737,999 | 658,306 | 571,723 | ||||||||
Acquisition costs and other underwriting expenses | 240,613 | 265,152 | 228,935 | ||||||||
Total expenses | 978,612 | 923,458 | 800,658 | ||||||||
Underwriting loss | (238,935) | (2,861) | 28,667 | ||||||||
Other income (loss): | |||||||||||
Service, fee and other revenues | 5,791 | 3,666 | 2,023 | ||||||||
Investment income and realized gain on investments | 58,527 | 53,756 | 32,521 | ||||||||
Other expenses | (40,858) | (49,946) | (45,935) | ||||||||
Interest expense | (11,377) | (14,084) | (11,769) | ||||||||
Foreign currency loss | 0 | 0 | 0 | ||||||||
Gain on life settlements | (283) | 8,172 | 3,852 | ||||||||
Acquisition gain on purchase | 0 | 0 | |||||||||
Gain on sale of policy management system | 0 | ||||||||||
Benefit (provision) for income taxes | 51,973 | 215 | (734) | ||||||||
Equity in earnings of unconsolidated subsidiaries – related party | 0 | 0 | 0 | ||||||||
Net (loss) income | (175,162) | (1,082) | 8,625 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross written premiums | 0 | 0 | 0 | ||||||||
Revenues [Abstract] | |||||||||||
Net written premiums | 0 | 0 | 0 | ||||||||
Change in unearned premiums | 0 | 0 | 0 | ||||||||
Net earned premiums | 0 | 0 | 0 | ||||||||
Expenses: | |||||||||||
Loss and loss adjustment expenses | 0 | 0 | 0 | ||||||||
Acquisition costs and other underwriting expenses | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Underwriting loss | 0 | 0 | 0 | ||||||||
Other income (loss): | |||||||||||
Service, fee and other revenues | 105,870 | 98,996 | 82,516 | ||||||||
Investment income and realized gain on investments | 0 | 0 | 55 | ||||||||
Other expenses | (352,911) | (282,033) | (236,627) | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Foreign currency loss | 0 | 0 | 0 | ||||||||
Gain on life settlements | 0 | 0 | 0 | ||||||||
Acquisition gain on purchase | 0 | 0 | |||||||||
Gain on sale of policy management system | 186,755 | ||||||||||
Benefit (provision) for income taxes | (3,021) | 27,694 | 10,091 | ||||||||
Equity in earnings of unconsolidated subsidiaries – related party | 73,488 | 15,626 | 25,385 | ||||||||
Net (loss) income | 10,181 | (139,717) | (118,580) | ||||||||
Workers' compensation | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 1,789,319 | 1,952,020 | 1,615,788 | ||||||||
Workers' compensation | Small Commercial Business | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 1,409,947 | 1,421,744 | 1,278,509 | ||||||||
Workers' compensation | Specialty Risk and Extended Warranty | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 0 | 0 | 0 | ||||||||
Workers' compensation | Specialty Program | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 379,372 | 530,276 | 337,279 | ||||||||
Warranty | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 970,706 | 759,621 | 623,432 | ||||||||
Warranty | Small Commercial Business | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 0 | 10,614 | 0 | ||||||||
Warranty | Specialty Risk and Extended Warranty | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 970,673 | 748,946 | 623,432 | ||||||||
Warranty | Specialty Program | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 33 | 61 | 0 | ||||||||
Commercial auto and liability, physical damage | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 512,417 | 533,571 | 440,916 | ||||||||
Commercial auto and liability, physical damage | Small Commercial Business | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 396,245 | 362,774 | 282,593 | ||||||||
Commercial auto and liability, physical damage | Specialty Risk and Extended Warranty | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 0 | 40,388 | 17,248 | ||||||||
Commercial auto and liability, physical damage | Specialty Program | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 116,172 | 130,409 | 141,075 | ||||||||
Other liabilities | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 368,419 | 330,691 | 386,420 | ||||||||
Other liabilities | Small Commercial Business | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 0 | 22,273 | 50,578 | ||||||||
Other liabilities | Specialty Risk and Extended Warranty | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 176,655 | 140,256 | 139,463 | ||||||||
Other liabilities | Specialty Program | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 191,764 | 168,162 | 196,379 | ||||||||
Medical malpractice | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 206,622 | 233,136 | 161,767 | ||||||||
Medical malpractice | Small Commercial Business | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 0 | 0 | 0 | ||||||||
Medical malpractice | Specialty Risk and Extended Warranty | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 206,622 | 233,136 | 161,767 | ||||||||
Medical malpractice | Specialty Program | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 0 | 0 | 0 | ||||||||
Other | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 1,208,615 | 858,926 | 792,918 | ||||||||
Other | Small Commercial Business | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 500,468 | 386,064 | 275,200 | ||||||||
Other | Specialty Risk and Extended Warranty | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | 655,811 | 381,173 | 363,126 | ||||||||
Other | Specialty Program | |||||||||||
Revenues [Abstract] | |||||||||||
Net earned premiums | $ 52,336 | $ 91,689 | $ 154,592 |
Segments (Long Lived Assets and
Segments (Long Lived Assets and Total Assets of Business Segments) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 5,958,941 | $ 5,450,456 | $ 4,613,791 |
Property, equipment and software, net | 457,565 | ||
Total property, equipment and software, net | 453,378 | 314,332 | 257,128 |
Goodwill and intangible assets | 1,293,889 | ||
Total goodwill and intangible assets | 933,715 | 1,243,125 | |
Total assets | 25,218,630 | 22,614,668 | |
Small Commercial Business | |||
Segment Reporting Information [Line Items] | |||
Property, equipment and software, net | 235,581 | ||
Total property, equipment and software, net | 158,967 | ||
Goodwill and intangible assets | 409,043 | ||
Total goodwill and intangible assets | 401,889 | ||
Total assets | 11,133,847 | 9,949,105 | |
Specialty Risk and Extended Warranty | |||
Segment Reporting Information [Line Items] | |||
Property, equipment and software, net | 169,010 | ||
Total property, equipment and software, net | 99,699 | ||
Goodwill and intangible assets | 814,845 | ||
Total goodwill and intangible assets | 767,196 | ||
Total assets | 10,011,169 | 8,530,559 | |
Specialty Program | |||
Segment Reporting Information [Line Items] | |||
Property, equipment and software, net | 52,974 | ||
Total property, equipment and software, net | 55,666 | ||
Goodwill and intangible assets | 70,001 | ||
Total goodwill and intangible assets | 74,040 | ||
Total assets | 4,073,614 | 4,135,004 | |
US Based Fee Businesses | Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Segment Reporting Information [Line Items] | |||
Less: Assets classified as held for sale (See Note 27) | (4,187) | ||
Less: Assets classified as held for sale (See Note 27) | (360,174) | ||
Domestic | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 3,563,436 | 2,756,745 | 1,937,501 |
Property, equipment and software, net | 245,270 | ||
Total property, equipment and software, net | 260,513 | 224,795 | |
International | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 2,395,505 | 2,693,711 | 2,676,290 |
Property, equipment and software, net | $ 212,295 | ||
Total property, equipment and software, net | $ 53,819 | $ 32,333 |
Quarterly Financial Data (Un154
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net earned premiums | $ 1,259,980 | $ 1,192,877 | $ 1,380,709 | $ 1,222,532 | $ 1,215,695 | $ 1,196,236 | $ 1,181,752 | $ 1,074,282 | $ 5,056,098 | $ 4,667,965 | $ 4,021,241 |
Net investment income | 53,849 | 61,103 | 49,226 | 63,325 | 47,968 | 59,919 | 50,745 | 49,415 | 227,503 | 208,047 | 156,290 |
Service and fee income | 125,758 | 180,505 | 168,446 | 137,496 | 150,999 | 133,857 | 124,305 | 128,805 | 612,205 | 537,966 | 428,143 |
Total revenues | 1,446,132 | 1,459,005 | 1,621,836 | 1,431,968 | 1,419,836 | 1,398,242 | 1,371,901 | 1,260,477 | |||
Loss and loss adjustment expenses | 953,548 | 1,266,118 | 1,024,478 | 840,334 | 831,765 | 811,048 | 784,393 | 715,073 | 4,084,478 | 3,142,279 | 2,688,118 |
Acquisition costs and other underwriting expenses | 584,011 | 337,086 | 373,195 | 328,215 | 359,232 | 303,992 | 294,476 | 272,468 | 1,622,507 | 1,230,168 | 993,571 |
Other | 165,759 | 177,350 | 199,860 | 162,853 | 161,203 | 139,251 | 134,344 | 129,267 | 705,822 | 564,065 | 473,253 |
Interest expense | 27,562 | 22,873 | 24,229 | 23,601 | 23,616 | 22,124 | 17,912 | 15,874 | |||
(Benefit) provision for income taxes | (38,404) | (62,588) | (19,727) | 21,356 | 19,355 | 23,185 | 23,807 | 18,960 | (99,363) | 85,307 | 38,946 |
Income (loss) attributable to Common Stockholders | $ (268,959) | $ (174,675) | $ 5,829 | $ 22,632 | $ 71,355 | $ 80,650 | $ 127,156 | $ 83,978 | $ (415,173) | $ 363,139 | $ 419,115 |
Basic EPS (in dollars per share) | $ (1.50) | $ (0.89) | $ 0.03 | $ 0.13 | $ 0.42 | $ 0.47 | $ 0.73 | $ 0.48 | $ (2.23) | $ 2.10 | $ 2.54 |
Diluted EPS (in dollars per share) | $ (1.50) | $ (0.89) | $ 0.03 | $ 0.13 | $ 0.41 | $ 0.47 | $ 0.73 | $ 0.47 | $ (2.23) | $ 2.08 | $ 2.49 |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net income (loss) | $ (255,388) | $ (158,822) | $ 29,123 | $ 50,208 | $ 93,834 | $ 95,201 | $ 144,549 | $ 96,786 | $ (334,879) | $ 430,370 | $ 457,633 |
Immaterial Error Correction | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net income (loss) | $ (22,153) |
Divestitures (Net Assets) (Deta
Divestitures (Net Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disposal Group, Including Discontinued Operation, Assets [Abstract] | |||
Cash and cash equivalents | $ 56,062 | $ 0 | $ 0 |
Other assets | 165,435 | 0 | |
Total assets held for sale | 900,903 | 0 | |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | |||
Total liabilities held for sale | 761,679 | 0 | |
US Based Fee Businesses | Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | |||
Fixed maturity securities, available for sale | 35,233 | ||
Other investments | 230 | ||
Cash and cash equivalents | 56,062 | ||
Restricted cash and cash equivalents | 33,802 | ||
Accrued interest and dividends | 326 | ||
Premiums receivable, net | 33,933 | ||
Deferred policy acquisition costs | 211,521 | ||
Property, equipment and software, net | 4,187 | ||
Goodwill | 188,315 | ||
Intangible assets | 171,859 | ||
Other assets | 165,435 | ||
Total assets held for sale | 900,903 | ||
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | |||
Funds held under reinsurance treaties | 1,294 | ||
Accrued expenses and other liabilities | 760,385 | $ 0 | |
Total liabilities held for sale | $ 761,679 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 01, 2018 | Feb. 28, 2018 | Dec. 31, 2017 | Feb. 28, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | |||
AmeriHealth Casualty Insurance Company | |||||
Subsequent Event [Line Items] | |||||
Percentage of interest acquired | 100.00% | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Common stock, par value (usd per share) | $ 0.01 | ||||
Subsequent Event | Karfunkel-Zyskind Family | |||||
Subsequent Event [Line Items] | |||||
Ownership interest | 55.00% | ||||
Subsequent Event | Mayfield Holdings LLC | |||||
Subsequent Event [Line Items] | |||||
Cash paid in exchange for interest | $ 933,000 | ||||
Percentage of interest acquired | 49.00% | ||||
Equity interest exchanged in acquisition | $ 217,000 | ||||
Subsequent Event | Mayfield Holdings LLC | MH JV Holdings L.P. (Investor) | |||||
Subsequent Event [Line Items] | |||||
Cash paid in exchange for interest | $ 225,800 | ||||
Percentage of interest acquired | 51.00% | ||||
Subsequent Event | Evergreen Parent | |||||
Subsequent Event [Line Items] | |||||
Merger consideration share price (usd per share) | $ 13.50 | ||||
Subsequent Event | Evergreen Parent | Stone Point | |||||
Subsequent Event [Line Items] | |||||
Equity interest exchanged in acquisition | $ 800 | ||||
Subsequent Event | Evergreen Parent | Entity Controlled by Karfunkel-Zyskind Family | |||||
Subsequent Event [Line Items] | |||||
Equity interest exchanged in acquisition | $ 400 |
Schedule I - Summary of Inve157
Schedule I - Summary of Investments Other Than Investments in Related Parties (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | $ 8,000,046 |
Value | 8,093,060 |
Amount at which Shown in Balance Sheet | 8,093,060 |
Fixed maturities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 7,460,906 |
Value | 7,538,111 |
Amount at which Shown in Balance Sheet | 7,538,111 |
U.S. treasury securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 326,550 |
Value | 324,113 |
Amount at which Shown in Balance Sheet | 324,113 |
U.S. government agencies | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 51,111 |
Value | 50,525 |
Amount at which Shown in Balance Sheet | 50,525 |
Municipal bonds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,035,552 |
Value | 1,045,527 |
Amount at which Shown in Balance Sheet | 1,045,527 |
Foreign government | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 151,376 |
Value | 151,734 |
Amount at which Shown in Balance Sheet | 151,734 |
Corporate bonds: | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Amount at which Shown in Balance Sheet | 0 |
Finance | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,733,745 |
Value | 1,769,912 |
Amount at which Shown in Balance Sheet | 1,769,912 |
Industrial | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 2,263,683 |
Value | 2,292,607 |
Amount at which Shown in Balance Sheet | 2,292,607 |
Utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 323,782 |
Value | 332,422 |
Amount at which Shown in Balance Sheet | 332,422 |
Commercial mortgage backed securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 419,279 |
Value | 412,732 |
Amount at which Shown in Balance Sheet | 412,732 |
Agency backed | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 562,043 |
Value | 556,429 |
Amount at which Shown in Balance Sheet | 556,429 |
Non-agency backed | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 6,870 |
Value | 6,777 |
Amount at which Shown in Balance Sheet | 6,777 |
Collateralized loan / debt obligations | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 591,198 |
Value | 600,531 |
Amount at which Shown in Balance Sheet | 600,531 |
Asset backed securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 30,080 |
Value | 30,035 |
Amount at which Shown in Balance Sheet | 30,035 |
Equity securities: | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 195,922 |
Value | 211,731 |
Amount at which Shown in Balance Sheet | 211,731 |
Preferred stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 499 |
Value | 477 |
Amount at which Shown in Balance Sheet | 477 |
Common stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 195,423 |
Value | 211,254 |
Amount at which Shown in Balance Sheet | 211,254 |
Short-term investments, at cost (approximates fair value) | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 187,793 |
Value | 187,793 |
Amount at which Shown in Balance Sheet | 187,793 |
Other invested assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 155,425 |
Value | 155,425 |
Amount at which Shown in Balance Sheet | 155,425 |
US Based Fee Businesses | Disposal Group, Held-for-sale, Not Discontinued Operations | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 34,363 |
Value | 35,233 |
Amount at which Shown in Balance Sheet | $ 35,233 |
Schedule II -Condensed Financia
Schedule II -Condensed Financial Information of Registrant Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||||
Cash | $ 763,121 | $ 567,771 | $ 1,003,916 | $ 880,899 |
Invested assets | 8,149,661 | 7,954,557 | ||
Other assets (related party $271,401; $161,845; recorded at fair value $20,808; $356,856) | 1,423,050 | 1,601,850 | ||
Total assets | (25,218,630) | (22,614,668) | ||
Liabilities: | ||||
Revolving credit facility borrowing | 130,000 | 130,000 | ||
6.125% Notes due 2023 | 248,458 | 248,185 | ||
Junior subordinated debentures (the 2035-2037 Notes) | 123,714 | |||
Secured loan | 174,414 | 75,762 | ||
Promissory notes | 66,504 | 118,643 | ||
Other liabilities | 913,474 | 1,635,666 | ||
Total liabilities | 21,848,563 | 19,147,697 | ||
Stockholders’ equity | ||||
Common stock | 2,108 | 1,965 | ||
Preferred stock | 913,750 | 913,750 | ||
Paid-in and contributed capital | 1,639,681 | 1,384,922 | ||
Treasury shares | (242,106) | (310,883) | ||
Accumulated other comprehensive loss | 15,516 | (125,722) | ||
Retained earnings | 860,854 | 1,405,071 | ||
Stockholders' Equity | 3,189,803 | 3,269,103 | ||
Total liabilities and stockholders' equity | 25,218,630 | 22,614,668 | ||
Parent | ||||
Assets: | ||||
Cash | 23,004 | 32,350 | $ 12,157 | $ 7,690 |
Invested assets | 7,561 | 6,482 | ||
Carrying value of subsidiaries, at equity | 4,951,318 | 4,540,301 | ||
Other assets (related party $271,401; $161,845; recorded at fair value $20,808; $356,856) | 741,199 | 909,112 | ||
Total assets | (5,723,082) | (5,488,245) | ||
Liabilities: | ||||
Due to affiliates – net | 1,086,841 | 810,349 | ||
Revolving credit facility borrowing | 130,000 | 130,000 | ||
Junior subordinated debentures (the 2035-2037 Notes) | 122,116 | 122,028 | ||
Secured loan | 10,546 | 16,684 | ||
Promissory notes | 52,343 | 104,685 | ||
Other liabilities | 428,532 | 339,716 | ||
Total liabilities | 2,533,279 | 2,219,143 | ||
Stockholders’ equity | ||||
Common stock | 2,108 | 1,965 | ||
Preferred stock | 913,750 | 913,750 | ||
Paid-in and contributed capital | 1,639,681 | 1,384,922 | ||
Treasury shares | (242,106) | (310,883) | ||
Accumulated other comprehensive loss | 15,516 | (125,723) | ||
Retained earnings | 860,854 | 1,405,071 | ||
Stockholders' Equity | 3,189,803 | 3,269,102 | ||
Total liabilities and stockholders' equity | 5,723,082 | 5,488,245 | ||
5.5% Convertible senior notes due 2021 (the 2021 Notes) | ||||
Liabilities: | ||||
Convertible senior notes | 5,363 | 5,223 | ||
5.5% Convertible senior notes due 2021 (the 2021 Notes) | Parent | ||||
Liabilities: | ||||
Convertible senior notes | 5,363 | 5,223 | ||
6.125% Notes due 2023 (the 2023 Notes) | Parent | ||||
Liabilities: | ||||
6.125% Notes due 2023 | 248,458 | 248,185 | ||
2.75% Convertible senior notes due 2044 (the 2044 Notes) | ||||
Liabilities: | ||||
Convertible senior notes | 172,958 | 166,387 | ||
2.75% Convertible senior notes due 2044 (the 2044 Notes) | Parent | ||||
Liabilities: | ||||
Convertible senior notes | 172,958 | 166,387 | ||
7.25% Subordinated notes due 2055 (the 7.25% 2055 Notes) | ||||
Liabilities: | ||||
Subordinated debt | 145,327 | 145,202 | ||
7.25% Subordinated notes due 2055 (the 7.25% 2055 Notes) | Parent | ||||
Liabilities: | ||||
Subordinated debt | 145,327 | 145,202 | ||
7.50% Subordinated notes due 2055 (the 7.50% 2055 Notes) | ||||
Liabilities: | ||||
Subordinated debt | 130,795 | 130,684 | ||
7.50% Subordinated notes due 2055 (the 7.50% 2055 Notes) | Parent | ||||
Liabilities: | ||||
Subordinated debt | $ 130,795 | $ 130,684 |
Schedule II -Condensed Finan159
Schedule II -Condensed Financial Information of Registrant Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income: | |||||||||||
Acquisition gain on purchase | $ 0 | $ 48,775 | $ 5,826 | ||||||||
Total revenues | 5,958,941 | 5,450,456 | 4,613,791 | ||||||||
Expenses: | |||||||||||
Interest expense | $ 27,562 | $ 22,873 | $ 24,229 | $ 23,601 | $ 23,616 | $ 22,124 | $ 17,912 | $ 15,874 | |||
Loss on extinguishment of debt | 0 | 0 | 5,271 | ||||||||
Federal tax (benefit) expense | (38,404) | (62,588) | (19,727) | 21,356 | 19,355 | 23,185 | 23,807 | 18,960 | (99,363) | 85,307 | 38,946 |
Other expenses from operations | 165,759 | 177,350 | 199,860 | 162,853 | 161,203 | 139,251 | 134,344 | 129,267 | 705,822 | 564,065 | 473,253 |
Net (loss) income | $ (255,388) | $ (158,822) | $ 29,123 | $ 50,208 | $ 93,834 | $ 95,201 | $ 144,549 | $ 96,786 | (334,879) | 430,370 | 457,633 |
Parent | |||||||||||
Income: | |||||||||||
Investment income | 5,112 | 293 | 249 | ||||||||
Equity in undistributed net (loss) income of consolidated subsidiaries and partially-owned companies | (168,352) | 563,482 | 566,818 | ||||||||
Acquisition gain on purchase | 0 | 455 | 5,826 | ||||||||
Miscellaneous income (expense) | 4,990 | 10,432 | 4,239 | ||||||||
Total revenues | (158,250) | 574,662 | 577,132 | ||||||||
Expenses: | |||||||||||
Interest expense | 68,657 | 66,219 | 44,401 | ||||||||
Loss on extinguishment of debt | 0 | 0 | 5,271 | ||||||||
Federal tax (benefit) expense | (990) | (1,280) | (2,827) | ||||||||
Other expenses from operations | 108,962 | 79,353 | 72,654 | ||||||||
Total expenses | 176,629 | 144,292 | 119,499 | ||||||||
Net (loss) income | $ (334,879) | $ 430,370 | $ 457,633 |
Schedule II -Condensed Finan160
Schedule II -Condensed Financial Information of Registrant Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net (loss) income | $ (255,388) | $ (158,822) | $ 29,123 | $ 50,208 | $ 93,834 | $ 95,201 | $ 144,549 | $ 96,786 | $ (334,879) | $ 430,370 | $ 457,633 |
Other comprehensive (loss) income, net of tax: | |||||||||||
Foreign currency translation adjustments | 143,386 | (90,129) | (89,252) | ||||||||
Change in fair value of derivatives, net of tax | 140 | 528 | 621 | ||||||||
Minimum pension liability | 930 | (3,070) | 2,686 | ||||||||
Unrealized (loss) gain on securities: | |||||||||||
Gross unrealized holding gain (loss) | 70,796 | 177,395 | (171,109) | ||||||||
Less tax expense (benefit) | 11,173 | 46,339 | (59,888) | ||||||||
Net unrealized holding gain (loss) | 59,623 | 131,056 | (111,221) | ||||||||
Other-than-temporary impairment loss | 0 | 25,219 | 4,315 | ||||||||
Other net realized loss on investments | (62,841) | (55,934) | (1,118) | ||||||||
Reclassification adjustment for investment (loss) gain included in net income | (62,841) | (30,715) | 3,197 | ||||||||
Other comprehensive income (loss), net of tax | 141,238 | 7,670 | (193,969) | ||||||||
Comprehensive (loss) income | (193,641) | 438,040 | 263,664 | ||||||||
Less: Comprehensive loss attributable to non-controlling and redeemable non-controlling interest | (14,010) | (19,384) | (6,928) | ||||||||
Comprehensive (loss) income attributable to AmTrust Financial Services, Inc. | (207,651) | 418,656 | 256,736 | ||||||||
Parent | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net (loss) income | (334,879) | 430,370 | 457,633 | ||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||
Foreign currency translation adjustments | 143,386 | (90,129) | (89,252) | ||||||||
Change in fair value of derivatives, net of tax | 140 | 528 | 621 | ||||||||
Minimum pension liability | 930 | (3,070) | 2,686 | ||||||||
Unrealized (loss) gain on securities: | |||||||||||
Gross unrealized holding gain (loss) | 70,796 | 177,395 | (171,109) | ||||||||
Less tax expense (benefit) | 11,173 | 46,339 | (59,888) | ||||||||
Net unrealized holding gain (loss) | 59,623 | 131,056 | (111,221) | ||||||||
Other-than-temporary impairment loss | 0 | 25,219 | 4,315 | ||||||||
Other net realized loss on investments | (62,841) | (55,934) | (1,118) | ||||||||
Reclassification adjustment for investment (loss) gain included in net income | (62,841) | (30,715) | 3,197 | ||||||||
Other comprehensive income (loss), net of tax | 141,238 | 7,670 | (193,969) | ||||||||
Comprehensive (loss) income | (193,641) | 438,040 | 263,664 | ||||||||
Less: Comprehensive loss attributable to non-controlling and redeemable non-controlling interest | (14,010) | (19,384) | (6,928) | ||||||||
Comprehensive (loss) income attributable to AmTrust Financial Services, Inc. | $ (207,651) | $ 418,656 | $ 256,736 |
Schedule II -Condensed Finan161
Schedule II -Condensed Financial Information of Registrant Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash flows from operating activities: | ||||||||||||
Net (loss) income | $ (255,388) | $ (158,822) | $ 29,123 | $ 50,208 | $ 93,834 | $ 95,201 | $ 144,549 | $ 96,786 | $ (334,879) | $ 430,370 | $ 457,633 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||||
Stock based compensation | 26,583 | 23,286 | 22,763 | |||||||||
Discount on note | 6,659 | 6,720 | 5,628 | |||||||||
Dividend received from equity investment | 744 | 1,598 | 984 | |||||||||
Acquisition gain | 0 | (48,775) | (5,826) | |||||||||
Loss on extinguishment of debt | 0 | 0 | 5,271 | |||||||||
Equity (earnings) losses, gain on investments in unconsolidated subsidiaries and dividend from subsidiaries, net | [1] | (73,488) | (17,224) | (25,385) | ||||||||
Other assets | (219,092) | 104,623 | (462,244) | |||||||||
Changes in liabilities increase (decrease): | ||||||||||||
Net cash (used in) provided by operating activities | (375,297) | 916,703 | 1,011,259 | |||||||||
Cash flows from investing activities: | ||||||||||||
Acquisition of subsidiary companies, net of cash acquired | [2] | (102,905) | (402,232) | (242,358) | ||||||||
Net cash provided by (used in) investing activities | 633,711 | (1,605,987) | (1,639,041) | |||||||||
Cash flows from financing activities: | ||||||||||||
Financing fees | (313) | (277) | (9,451) | |||||||||
Contingent consideration payments | (18,124) | (35,734) | (15,334) | |||||||||
Net proceeds from issuance of preferred stock | 0 | 417,264 | 176,529 | |||||||||
Stock option exercise and other | (1,651) | (3,839) | (2,556) | |||||||||
Dividends paid | (124,701) | (108,228) | (85,296) | |||||||||
Dividends distributed on preferred stock | (66,284) | (47,847) | (31,590) | |||||||||
Net cash (used in) provided by financing activities | (57,856) | 268,374 | 766,456 | |||||||||
Net increase (decrease) in cash and cash equivalents | 195,350 | (436,145) | 123,017 | |||||||||
Cash and cash equivalents, beginning year | 567,771 | 1,003,916 | 567,771 | 1,003,916 | 880,899 | |||||||
Cash and cash equivalents, end of year | 763,121 | 567,771 | 763,121 | 567,771 | 1,003,916 | |||||||
Parent | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net (loss) income | (334,879) | 430,370 | 457,633 | |||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||||
Depreciation and amortization | 9,842 | 10,216 | 10,738 | |||||||||
Stock based compensation | 26,583 | 23,286 | 22,763 | |||||||||
Discount on note | 6,659 | 6,720 | 5,628 | |||||||||
Dividend received from equity investment | 733 | 1,598 | 984 | |||||||||
Acquisition gain | 0 | (455) | (5,826) | |||||||||
Loss on extinguishment of debt | 0 | 0 | 5,271 | |||||||||
Carrying value of equity interest in subsidiaries | 184,056 | (456,776) | (555,293) | |||||||||
Equity (earnings) losses, gain on investments in unconsolidated subsidiaries and dividend from subsidiaries, net | (5,063) | (17,224) | 45,513 | |||||||||
Other assets | 167,913 | (122,411) | (248,090) | |||||||||
Changes in liabilities increase (decrease): | ||||||||||||
Due to (from) affiliates | 276,492 | 560,173 | (72,067) | |||||||||
Other liabilities | 88,818 | 61,963 | (15,389) | |||||||||
Net cash (used in) provided by operating activities | 421,154 | 497,460 | (348,135) | |||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | (223) | (1,694) | (7) | |||||||||
Investments purchased, net of sales | (1,079) | (4,425) | (704) | |||||||||
Investment in subsidiary | (464,202) | (378,393) | (112,877) | |||||||||
Acquisition of subsidiary companies, net of cash acquired | 0 | (174,678) | (281,799) | |||||||||
Net cash provided by (used in) investing activities | (465,504) | (559,190) | (395,387) | |||||||||
Cash flows from financing activities: | ||||||||||||
Issuance of debt | 0 | 0 | 745,500 | |||||||||
Payment of debt | (58,486) | (6,015) | (518,450) | |||||||||
Financing fees | 0 | 0 | (9,451) | |||||||||
Contingent consideration payments | (12,621) | (21,203) | (12,652) | |||||||||
Common stock issuance (repurchase), net | 298,747 | (152,047) | 483,399 | |||||||||
Net proceeds from issuance of preferred stock | 0 | 417,264 | 176,529 | |||||||||
Stock option exercise and other | (1,651) | 0 | 0 | |||||||||
Dividends paid | (124,701) | (108,229) | (85,296) | |||||||||
Dividends distributed on preferred stock | (66,284) | (47,847) | (31,590) | |||||||||
Net cash (used in) provided by financing activities | 35,004 | 81,923 | 747,989 | |||||||||
Net increase (decrease) in cash and cash equivalents | (9,346) | 20,193 | 4,467 | |||||||||
Cash and cash equivalents, beginning year | $ 32,350 | $ 12,157 | 32,350 | 12,157 | 7,690 | |||||||
Cash and cash equivalents, end of year | $ 23,004 | $ 32,350 | $ 23,004 | $ 32,350 | $ 12,157 | |||||||
[1] | 2017 amounts relate to the sale of shares of National General Holding Corp. See Note 15 for more information. | |||||||||||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmIyOTQ2MjBhYjk4YjRmNjk5M2EyYzE1MThhNGMwYjk4fFRleHRTZWxlY3Rpb246QTU0NzhGRThFOEMxMTg1QkJCNEQwNzU1QUVFMDY0OEYM} |
Schedule III - Supplementary162
Schedule III - Supplementary Insurance Information (Details) - Operating Segments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | $ 922,857 | $ 928,920 | $ 693,639 |
Loss and Loss Adjustment Expense Reserve | 12,138,768 | 10,140,716 | 7,208,367 |
Unearned Premiums | 5,279,239 | 4,880,066 | 4,014,387 |
Net Earned Premiums | 5,056,098 | 4,667,965 | 4,021,241 |
Net Investment Income | 227,503 | 208,047 | 156,290 |
Loss and Loss Adjustment Expenses | 4,084,478 | 3,142,279 | 2,688,118 |
Amortization of Deferred Policy Acquisition Costs | 1,006,468 | 761,814 | 662,085 |
Other Operating Expenses | 616,039 | 468,354 | 331,486 |
Net Premiums Written | 5,152,516 | 4,851,327 | 4,261,928 |
Small Commercial Business | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 187,757 | 174,596 | 203,495 |
Loss and Loss Adjustment Expense Reserve | 6,042,101 | 4,913,241 | 3,934,696 |
Unearned Premiums | 1,795,154 | 1,605,055 | 1,374,482 |
Net Earned Premiums | 2,306,660 | 2,203,469 | 1,886,880 |
Net Investment Income | 92,329 | 85,922 | 69,207 |
Loss and Loss Adjustment Expenses | 1,812,925 | 1,460,503 | 1,234,089 |
Amortization of Deferred Policy Acquisition Costs | 483,240 | 411,218 | 361,107 |
Other Operating Expenses | 236,553 | 181,351 | 125,620 |
Net Premiums Written | 2,305,817 | 2,246,188 | 1,932,100 |
Specialty Risk and Extended Warranty | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 683,171 | 653,500 | 424,349 |
Loss and Loss Adjustment Expense Reserve | 3,275,873 | 2,620,004 | 1,674,006 |
Unearned Premiums | 3,149,531 | 2,690,922 | 2,142,719 |
Net Earned Premiums | 2,009,761 | 1,543,899 | 1,305,036 |
Net Investment Income | 89,361 | 76,466 | 56,116 |
Loss and Loss Adjustment Expenses | 1,533,554 | 1,023,470 | 882,306 |
Amortization of Deferred Policy Acquisition Costs | 304,649 | 230,358 | 180,922 |
Other Operating Expenses | 357,452 | 142,089 | 96,980 |
Net Premiums Written | 2,215,003 | 1,722,139 | 1,450,817 |
Specialty Program | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 51,929 | 100,824 | 65,795 |
Loss and Loss Adjustment Expense Reserve | 2,820,794 | 2,602,748 | 1,597,259 |
Unearned Premiums | 334,554 | 584,089 | 497,186 |
Net Earned Premiums | 739,677 | 920,597 | 829,325 |
Net Investment Income | 45,813 | 45,659 | 30,915 |
Loss and Loss Adjustment Expenses | 737,999 | 658,306 | 571,723 |
Amortization of Deferred Policy Acquisition Costs | 218,579 | 120,238 | 120,056 |
Other Operating Expenses | 22,034 | 144,914 | 108,886 |
Net Premiums Written | 631,696 | 883,000 | 879,011 |
Corporate and Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 0 | 0 | 0 |
Loss and Loss Adjustment Expense Reserve | 0 | 4,723 | 2,406 |
Unearned Premiums | 0 | 0 | 0 |
Net Earned Premiums | 0 | 0 | 0 |
Net Investment Income | 0 | 0 | 52 |
Loss and Loss Adjustment Expenses | 0 | 0 | 0 |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 | 0 |
Other Operating Expenses | 0 | 0 | 0 |
Net Premiums Written | $ 0 | $ 0 | $ 0 |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Gross Amount | $ 7,710,610 | $ 7,370,202 | $ 5,994,848 | ||||||||
Ceded to Other Companies | 2,902,969 | 2,958,419 | 2,343,087 | ||||||||
Amount from Other Companies | 248,457 | 256,182 | 369,480 | ||||||||
Net earned premiums | $ 1,259,980 | $ 1,192,877 | $ 1,380,709 | $ 1,222,532 | $ 1,215,695 | $ 1,196,236 | $ 1,181,752 | $ 1,074,282 | 5,056,098 | 4,667,965 | 4,021,241 |
General Insurance | |||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Gross Amount | 8,250,524 | 7,727,657 | 6,473,338 | ||||||||
Ceded to Other Companies | 3,282,114 | 3,097,943 | 2,537,609 | ||||||||
Amount from Other Companies | 184,106 | 221,613 | 326,199 | ||||||||
Net earned premiums | $ 5,152,516 | $ 4,851,327 | $ 4,261,928 | ||||||||
Percent of Amount Assumed to Net | 3.60% | 4.60% | 7.70% |
Schedule VI - Consolidated S164
Schedule VI - Consolidated Supplementary Property and Casulty Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | |||
Current Year | $ 3,665,506 | $ 2,884,392 | $ 2,654,187 |
Prior year | 418,972 | 257,887 | 33,931 |
Paid Losses and Loss Adjustment Expenses | $ 3,221,533 | $ 2,545,409 | $ 1,866,288 |