Cover page
Cover page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 06, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Entity Registrant Name | Greenlight Capital Re, Ltd. | ||
Title of 12(b) Security | Class A ordinary shares | ||
Trading Symbol | GLRE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 242,450,450 | ||
Entity Central Index Key | 0001385613 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 30,739,395 | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 6,254,715 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments | ||
Investment in related party investment fund | $ 240,056 | $ 235,612 |
Equity securities, trading, at fair value | 0 | 36,908 |
Other investments | 16,384 | 11,408 |
Total investments | 256,440 | 283,928 |
Cash and cash equivalents | 25,813 | 18,215 |
Restricted cash and cash equivalents | 742,093 | 685,016 |
Reinsurance balances receivable | 230,384 | 300,251 |
Loss and loss adjustment expenses recoverable | 27,531 | 43,705 |
Deferred acquisition costs | 49,665 | 49,929 |
Unearned premiums ceded | 901 | 24,981 |
Notes receivable (net of valuation allowance) | 20,202 | 26,861 |
Other assets | 2,164 | 2,559 |
Total assets | 1,355,193 | 1,435,445 |
Liabilities | ||
Due to related party investment fund | 0 | 9,642 |
Loss and loss adjustment expense reserves | 470,588 | 482,662 |
Unearned premium reserves | 179,460 | 211,789 |
Reinsurance balances payable | 122,665 | 139,218 |
Funds withheld | 4,958 | 16,418 |
Other liabilities | 6,825 | 5,067 |
Convertible senior notes payable | 93,514 | 91,185 |
Total liabilities | 878,010 | 955,981 |
Redeemable non-controlling interest in related party joint venture | 0 | 1,692 |
Equity | ||
Preferred share capital (par value $0.10; authorized, 50,000,000; none issued) | 0 | 0 |
Ordinary share capital (Class A: par value $0.10; authorized, 100,000,000; issued and outstanding, 30,739,395 (2018: 30,130,214): Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,715 (2018: 6,254,715)) | 3,699 | 3,638 |
Additional paid-in capital | 503,547 | 499,726 |
Retained earnings (deficit) | (30,063) | (26,077) |
Shareholders’ equity attributable to Greenlight Capital Re, Ltd. | 477,183 | 477,287 |
Non-controlling interest in related party joint venture | 0 | 485 |
Total equity | 477,183 | 477,772 |
Total liabilities, redeemable non-controlling interest and equity | $ 1,355,193 | $ 1,435,445 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Preferred share capital, par value (in dollars per share) | $ 0.1 | $ 0.1 |
Preferred share capital, authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred share capital, issued (in shares) | 0 | 0 |
Common Class A | ||
Common Stock, par value per share (in dollars per share) | $ 0.1 | $ 0.1 |
Ordinary share capital, authorized (in shares) | 100,000,000 | 100,000,000 |
Ordinary share capital, issued (in shares) | 30,739,395 | 30,130,214 |
Ordinary share capital, outstanding (in shares) | 30,739,395 | 30,130,214 |
Common Class B | ||
Common Stock, par value per share (in dollars per share) | $ 0.10 | $ 0.10 |
Ordinary share capital, authorized (in shares) | 25,000,000 | 25,000,000 |
Ordinary share capital, issued (in shares) | 6,254,715 | 6,254,715 |
Ordinary share capital, outstanding (in shares) | 6,254,715 | 6,254,715 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||||||||||
Gross premiums written | $ 98,470 | $ 110,607 | $ 152,340 | $ 162,560 | $ 135,143 | $ 115,154 | $ 142,109 | $ 175,125 | $ 523,977 | $ 567,531 | $ 692,651 |
Gross premiums ceded | (90) | (4,035) | (23,141) | (21,401) | (30,252) | (15,456) | (27,237) | (29,843) | (48,667) | (102,788) | (56,587) |
Net premiums written | 98,380 | 106,572 | 129,199 | 141,159 | 104,891 | 99,698 | 114,872 | 145,282 | 475,310 | 464,743 | 636,064 |
Change in net unearned premium reserves | 10,243 | 22,582 | (8,758) | (15,797) | 14,708 | 14,406 | 13,944 | 562 | 8,270 | 43,620 | (10,060) |
Net premiums earned | 108,623 | 129,154 | 120,441 | 125,362 | 119,599 | 114,104 | 128,816 | 145,844 | 483,580 | 508,363 | 626,004 |
Income (loss) from investment in related party investment fund [net of related party expenses of $9,874, $3,100 and $0, respectively] | (5,714) | 6,609 | 14,405 | 30,756 | (50,548) | (10,025) | 0 | 0 | 46,056 | (60,573) | 0 |
Net investment income (loss) | (3,054) | 3,312 | 4,386 | 1,567 | (5,810) | (70,851) | (40,656) | (145,216) | 6,211 | (262,533) | 20,231 |
Other income (expense), net | 1,007 | (887) | 1,117 | 1,069 | (982) | (683) | (76) | (487) | 2,306 | (2,228) | (560) |
Total revenues | 100,862 | 138,188 | 140,349 | 158,754 | 62,259 | 32,545 | 88,084 | 141 | 538,153 | 183,029 | 645,675 |
Expenses | |||||||||||
Net loss and loss adjustment expenses incurred | 94,184 | 92,962 | 78,476 | 122,865 | 96,454 | 86,780 | 84,815 | 95,824 | 388,487 | 363,873 | 502,404 |
Acquisition costs | 27,424 | 30,962 | 37,172 | 21,526 | 38,312 | 28,331 | 34,623 | 44,209 | 117,084 | 145,475 | 161,740 |
General and administrative expenses | 7,338 | 7,725 | 7,919 | 6,840 | 5,123 | 7,136 | 6,958 | 5,956 | 29,822 | 25,173 | 26,356 |
Interest expense | 1,579 | 1,578 | 1,562 | 1,544 | 1,578 | 927 | 0 | 0 | 6,263 | 2,505 | 0 |
Total expenses | 130,525 | 133,227 | 125,129 | 152,775 | 141,467 | 123,174 | 126,396 | 145,989 | 541,656 | 537,026 | 690,500 |
Income (loss) before income tax | (29,663) | 4,961 | 15,220 | 5,979 | (3,503) | (353,997) | (44,825) | ||||
Income tax (expense) benefit | (683) | 179 | 94 | (73) | (1,780) | 355 | 323 | 770 | (483) | (332) | 451 |
Net income (loss) | (80,988) | (90,274) | (37,989) | (145,078) | (3,986) | (354,329) | (44,374) | ||||
Loss (income) attributable to non-controlling interest in related party joint venture | 169 | 1,159 | 621 | 2,326 | 0 | 4,275 | (578) | ||||
Net income (loss) attributable to Greenlight Capital Re, Ltd. | $ (30,346) | $ 5,140 | $ 15,314 | $ 5,906 | $ (80,819) | $ (89,115) | $ (37,368) | $ (142,752) | $ (3,986) | $ (350,054) | $ (44,952) |
Earnings (loss) per share | |||||||||||
Basic (in dollars per share) | $ (0.84) | $ 0.14 | $ 0.42 | $ 0.16 | $ (2.25) | $ (2.48) | $ (1.01) | $ (3.85) | $ (0.11) | $ (9.74) | $ (1.21) |
Diluted (in dollars per share) | $ (0.84) | $ 0.14 | $ 0.42 | $ 0.16 | $ (2.25) | $ (2.48) | $ (1.01) | $ (3.85) | $ (0.11) | $ (9.74) | $ (1.21) |
Weighted average number of ordinary shares used in the determination of earnings and loss per share | |||||||||||
Basic (in shares) | 36,121,023 | 36,841,623 | 36,100,665 | 35,972,665 | 35,952,472 | 35,952,472 | 36,952,472 | 37,087,169 | 36,079,419 | 35,951,659 | 37,002,260 |
Diluted (in shares) | 36,121,023 | 36,921,490 | 36,829,963 | 36,364,358 | 35,952,472 | 35,952,472 | 36,952,472 | 37,087,169 | 36,079,419 | 35,951,659 | 37,002,260 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment Advisory Agreement | |||
Management fee | $ 0 | $ 11,221 | $ 19,863 |
Limited Partner | |||
Management fee | $ 9,874 | $ 3,100 | $ 0 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Ordinary share capital | Additional paid-in capital | Retained earnings (deficit) | Shareholders’ equity attributable to Greenlight Capital Re, Ltd. | Non-controlling interest in joint venture |
Beginning balance at Dec. 31, 2016 | $ 885,803 | $ 3,737 | $ 500,337 | $ 370,168 | $ 874,242 | $ 11,561 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issue of Class A ordinary shares, net of forfeitures | 13 | 13 | 13 | |||
Repurchase of Class A ordinary shares | (2,819) | (14) | (1,861) | (944) | (2,819) | |
Share-based compensation expense | 4,840 | 4,840 | 4,840 | |||
Change in non-controlling interest in related party joint venture | 1,372 | 1,372 | ||||
Net income (loss) attributable to Greenlight Capital Re, Ltd. | (44,952) | (44,952) | (44,952) | |||
Ending balance at Dec. 31, 2017 | 844,257 | 3,736 | 503,316 | 324,272 | 831,324 | 12,933 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issue of Class A ordinary shares, net of forfeitures | 20 | 20 | 20 | |||
Repurchase of Class A ordinary shares | (16,503) | (118) | (16,090) | (295) | (16,503) | |
Share-based compensation expense | 4,604 | 4,604 | 4,604 | |||
Issuance of convertible notes | 7,896 | 7,896 | 7,896 | |||
Change in non-controlling interest in related party joint venture | (12,448) | (12,448) | ||||
Net income (loss) attributable to Greenlight Capital Re, Ltd. | (350,054) | (350,054) | (350,054) | |||
Ending balance at Dec. 31, 2018 | 477,772 | 3,638 | 499,726 | (26,077) | 477,287 | 485 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issue of Class A ordinary shares, net of forfeitures | 61 | 61 | 61 | |||
Share-based compensation expense | 3,821 | 3,821 | 3,821 | |||
Change in non-controlling interest in related party joint venture | (485) | (485) | ||||
Net income (loss) attributable to Greenlight Capital Re, Ltd. | (3,986) | (3,986) | (3,986) | |||
Ending balance at Dec. 31, 2019 | $ 477,183 | $ 3,699 | $ 503,547 | $ (30,063) | $ 477,183 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash provided by (used in) operating activities | |||
Net income (loss) | $ (3,986) | $ (354,329) | $ (44,374) |
Adjustments to reconcile net income or loss to net cash provided by (used in) operating activities | |||
Loss (income) from investments in related party investment fund | (46,056) | 60,573 | 0 |
Loss (income) from equity accounted investment | (700) | 247 | 0 |
Net change in unrealized gains and losses on investments, financial contracts and notes receivable | (8,380) | 32,597 | 41,444 |
Net realized (gains) losses on investments and financial contracts | 14,150 | 236,887 | (87,618) |
Foreign exchange (gains) losses on investments | 270 | 186 | 5,292 |
Share-based compensation expense | 3,882 | 4,624 | 4,853 |
Amortization and interest expense | 2,329 | 2,505 | 0 |
Depreciation expense | 21 | 260 | 368 |
Net change in | |||
Reinsurance balances receivable | 69,867 | 1,511 | (82,636) |
Loss and loss adjustment expenses recoverable | 16,174 | (14,246) | (26,755) |
Deferred acquisition costs | 264 | 12,421 | (1,328) |
Unearned premiums ceded | 24,080 | 139 | (22,743) |
Other assets | 374 | 411 | 705 |
Loss and loss adjustment expense reserves | (12,074) | 18,282 | 157,739 |
Unearned premium reserves | (32,329) | (44,029) | 33,291 |
Reinsurance balances payable | (16,553) | (4,840) | 102,643 |
Funds withheld | (11,460) | (7,161) | 17,652 |
Other liabilities | 1,758 | (5,346) | (4,114) |
Net cash provided by (used in) operating activities | 1,631 | (59,308) | 94,419 |
Investing activities | |||
Proceeds from redemptions from related party investment fund | 114,077 | 96,635 | 0 |
Contributions to related party investment fund | (35,792) | (268,317) | 0 |
Purchase of investments | (4,702) | (402,244) | (1,120,549) |
Sales of investments | 0 | 1,002,374 | 1,036,665 |
Payments for financial contracts | 0 | (129,907) | (24,714) |
Proceeds from financial contracts | 0 | 44,596 | 82,789 |
Securities sold, not yet purchased | 0 | 340,693 | 1,120,506 |
Dispositions of securities sold, not yet purchased | 0 | (844,379) | (1,253,176) |
Change in due to related party investment fund | (9,642) | 0 | 0 |
Change in due to prime brokers and other financial institutions | 0 | (672,700) | 352,870 |
Net change in notes receivable | 671 | 1,636 | 5,237 |
Non-controlling interest contribution into (withdrawal from) related party joint venture, net | (1,278) | (13,650) | |
Non-controlling interest contribution into (withdrawal from) related party joint venture, net | 2,079 | ||
Net cash provided by (used in) investing activities | 63,334 | (845,263) | 201,707 |
Financing activities | |||
Net proceeds from issuance of convertible senior notes payable, net of costs | 0 | 96,576 | 0 |
Repurchase of Class A ordinary shares | 0 | (16,503) | (2,819) |
Net cash provided by (used in) financing activities | 0 | 80,073 | (2,819) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (290) | (3,369) | (4,718) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 64,675 | (827,867) | 288,589 |
Cash, cash equivalents and restricted cash at beginning of the period (see Note 2) | 703,231 | 1,531,098 | 1,242,509 |
Cash, cash equivalents and restricted cash at end of the period (see Note 2) | 767,906 | 703,231 | 1,531,098 |
Supplementary information | |||
Interest paid in cash | 3,933 | 11,088 | 10,062 |
Income tax paid in cash | 0 | 4 | 0 |
Non-cash transfer of investments (Note 3) | 36,673 | $ 125,008 | $ 0 |
Non-cash addition of right-of-use asset | $ 323 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Greenlight Capital Re, Ltd. (“GLRE”) was incorporated as an exempted company under the Companies Law of the Cayman Islands on July 13, 2004. GLRE’s principal wholly-owned subsidiary, Greenlight Reinsurance, Ltd. (“Greenlight Re”), provides global specialty property and casualty reinsurance. Greenlight Re has a Class D insurer license issued in accordance with the terms of The Insurance Law, 2010 and underlying regulations thereto (the “Law”) and is subject to regulation by the Cayman Islands Monetary Authority, in terms of the Law. Greenlight Re commenced underwriting in April 2006. Verdant Holding Company, Ltd. (“Verdant”), a wholly-owned subsidiary of GLRE, was incorporated in 2008 in the state of Delaware. During 2010, GLRE established Greenlight Reinsurance Ireland, Designated Activity Company (“GRIL”), a wholly-owned reinsurance subsidiary based in Dublin, Ireland. GRIL is authorized as a non-life reinsurance undertaking in accordance with the provisions of the European Union (Insurance and Reinsurance) Regulations 2015. GRIL provides multi-line property and casualty reinsurance capacity to the European broker market and provides GLRE with an additional platform to serve clients located in Europe and North America. As used herein, the “Company” refers collectively to GLRE and its consolidated subsidiaries. Prior to January 2, 2019, the Company and its reinsurance subsidiaries were party to a joint venture agreement (the “venture agreement”) with DME Advisors, LP (“DME Advisors”) and DME Advisors LLC (“DME”) under which the Company, its reinsurance subsidiaries and DME were participants in a joint venture (the “Joint Venture”) for the purpose of managing certain jointly held assets. The Joint Venture was consolidated in accordance with ASC 810, Consolidation (ASC 810). DME and DME Advisors are related to the Company and each is an affiliate of David Einhorn, Chairman of the Company’s Board of Directors. On September 1, 2018, the Company entered into an amended and restated exempted limited partnership agreement (the “SILP LPA”) of Solasglas Investments, LP (“SILP”), with DME Advisors II, LLC (“DME II”), as General Partner, Greenlight Re, GRIL and the initial limited partner (each, a “Partner”). The SILP LPA, in conjunction with a participation agreement, replaced the venture agreement and assigned and/or transferred Greenlight Re’s and GRIL’s invested assets in the Joint Venture to SILP. The Joint Venture was terminated on January 2, 2019 by which date all assets were transferred to SILP (see Note 3 for details). The Class A ordinary shares of GLRE are listed on Nasdaq Global Select Market under the symbol “GLRE.” These consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of GLRE and the consolidated financial statements of its wholly owned subsidiaries, Greenlight Re, GRIL, Verdant and for periods prior to January 2, 2019, the Joint Venture. All significant intercompany transactions and balances have been eliminated on consolidation. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of consolidated financial statements in conformity with U.S. 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 consolidated financial statements and the reported amounts of income and expenses during the period. Actual results could differ from these estimates. Cash and Cash Equivalents Cash and cash equivalents consist of cash and certain short-term, highly liquid investments with original maturity dates of three months or less. Restricted Cash and Cash Equivalents The Company maintains cash and cash equivalent balances to collateralize regulatory trusts and letters of credit issued to cedents (see Notes 6 and 15 ). The amount of cash encumbered varies depending on the collateral required by those cedents. Prior to the termination of the Joint Venture on January 2, 2019, the Company maintained cash in segregated accounts with prime brokers and derivative counterparties. The following table reconciles the cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total presented in the consolidated statements of cash flows: December 31, 2019 December 31, 2018 ($ in thousands) Cash and cash equivalents $ 25,813 $ 18,215 Restricted cash and cash equivalents 742,093 685,016 Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows $ 767,906 $ 703,231 Premium Revenue Recognition The Company writes excess of loss contracts and quota share contracts, and estimates the ultimate premiums for the contract period. These estimates are based on information received from the ceding companies and actuarial pricing models used by the Company. For excess of loss contracts, the total ultimate estimated premiums are recorded as premiums written at the inception of the contract. For quota share contracts, the premiums are recorded as written in the same periods in which the underlying insurance contracts are written, and are based on cession statements from cedents. These statements are typically received monthly or quarterly depending on the terms specified in each contract. For any reporting lag, premiums written are estimated based on the portion of the ultimate estimated premiums relating to the risks underwritten during the lag period. Premium estimates are reviewed by management at least quarterly. Such review includes a comparison of actual reported premiums to expected ultimate premiums along with a review of the aging and collection of premiums. Based on management’s review, the appropriateness of the premium estimates is evaluated, and any adjustments to these estimates are recorded in the period in which they are determined. Changes in premium estimates, including premium receivable on both excess of loss and quota share contracts, are not unusual and may result in significant adjustments in any period. A significant portion of amounts included in the caption “Reinsurance balances receivable” in the Company’s consolidated balance sheets represent estimated premiums written, net of commissions and brokerage, and are not currently due based on the terms of the underlying contracts. Additional premiums due on a contract that has no remaining coverage period are earned in full when written. Certain contracts allow for reinstatement premiums in the event of a loss. Reinstatement premiums are written and earned when a triggering loss event occurs. Premiums written are generally recognized as earned over the contract period in proportion to the risk covered. Unearned premiums represent the unexpired portion of reinsurance provided. Reinsurance Premiums Ceded The Company reduces the risk of future losses on business assumed by reinsuring certain risks and exposures with other reinsurers (retrocessionaires). The Company remains liable to the extent that any retrocessionaire fails to meet its obligations and to the extent the Company does not hold sufficient security for their unpaid obligations. Ceded premiums are written during the period in which the risks incept and the associated expense is recognized over the contract period in proportion to the protection provided. Unearned premiums ceded represent the unexpired portion of reinsurance obtained. Acquisition Costs Policy acquisition costs are costs that vary with, and are directly related to, the successful production of new and renewal business, and consist principally of commissions, taxes and brokerage expenses. Acquisition costs incurred on reinsurance assumed are shown net of commissions earned on reinsurance ceded. However, if the sum of a contract’s expected losses and loss expenses and deferred acquisition costs exceeds associated unearned premiums and expected investment income, a premium deficiency is determined to exist. In this event, deferred acquisition costs are written off to the extent necessary to eliminate the premium deficiency. If the premium deficiency exceeds deferred acquisition costs then a liability is accrued for the excess deficiency. There were no significant premium deficiency adjustments recognized during the periods presented herein. Policy acquisition costs also include profit commissions, which are recognized on a basis consistent with our estimate of losses and loss expenses. As of December 31, 2019 , $1.2 million ( 2018 : $8.5 million ) of profit commission reserves were included in the caption “Reinsurance balances payable” in the Company’s consolidated balance sheets. For the year ended December 31, 2019 , $6.7 million , ( 2018 : $18.2 million , 2017 : $2.0 million ) of net profit commission expense was included in the caption “Acquisition costs” in the Company’s consolidated statements of operations. Funds Withheld Funds withheld represent reinsurance balances retained as collateral by the Company on retroceded contracts. Any interest expense that the Company incurs while these funds are withheld are included under the caption “Net investment income (loss)” in the consolidated statements of operations. Loss and Loss Adjustment Expense Reserves and Recoverable The Company’s loss and loss adjustment expense reserves are composed of: ● case reserves resulting from claims notified to the Company by its clients; and ● reserves for estimated loss and loss adjustment expenses that have been incurred by insureds and reinsureds but not yet reported to the insurer or reinsurer (“IBNR”), including unknown future developments on loss and loss adjustment expenses which are known to the insurer or reinsurer. These reserve estimates are based on the Company’s own actuarial estimates derived from reports received from ceding companies, industry data and historical experience. These estimates are reviewed by the Company’s reserving committee at least quarterly and adjusted as necessary. Since reserves are estimates, the final settlement of losses may vary from the reserves established and any adjustments to the estimates, which may be material, are recorded in the period they are determined. Loss estimates are based upon actuarial and statistical projections, an assessment of currently available data, predictions of future developments, estimates of future trends and other factors. The final settlement of losses may vary, perhaps materially, from the reserves recorded. All adjustments to the estimates are recorded in the period in which they are determined. U.S. GAAP does not permit establishing loss reserves, which include case reserves and IBNR loss reserves, until the occurrence of an event which may give rise to a claim. As a result, only loss reserves applicable to losses incurred up to the reporting date are established, with no allowance for the establishment of loss reserves to account for expected future loss events. Loss and loss adjustment expenses recoverable represent the amounts due from retrocessionaires for unpaid loss and loss adjustment expenses on retrocession agreements. Ceded IBNR recoverable is estimated based on the Company’s actuarial estimates. These estimates are reviewed periodically and adjusted when deemed necessary. The Company may ultimately be unable to recover the loss and loss adjustment expense recoverable amounts due to the retrocessionaires’ inability to pay. The Company regularly evaluates the financial condition of its retrocessionaires and records provisions for uncollectible reinsurance expenses recoverable when recovery is no longer probable. For natural peril exposed business, loss reserves are generally established based on loss payments and case reserves reported by clients when, and if, received. Estimates for IBNR losses are added to the case reserves as the Company deems appropriate. To establish IBNR loss estimates, the Company uses estimates communicated by ceding companies, industry data and information, knowledge of the business written and management’s judgment. For all non-natural peril business, initial reserves for each individual contract are determined on the basis of a combination of: (i) the pricing analysis of the expected loss ratio performed prior to the contract being bound; (ii) the underwriter’s detailed knowledge of the cedent, its operations and future business plans; and (iii) the professional judgment and recommendation of the Chief Actuary. In the pricing analysis, the Company utilizes information both from the individual client and from industry data. This information typically includes, but is not limited to, data related to premiums, losses, exposure, business mix, industry performance and associated trends covering as much history as deemed appropriate. The level of detail within the data obtained varies greatly depending on the underlying contract, line of business, client and/or coverage provided. In all cases, the Company requests each client to provide data for each reporting period, which, depending on the contract, could be on a monthly or quarterly basis. The exact data reporting requirements are specified in the terms and conditions of each contract. Where practical, historical reserving data that is received from a client is compared to publicly available financial statements of the client to identify, confirm and monitor the accuracy and completeness of the data. Generally, the Company obtains regular updates of premium and loss related information for the current and historical periods, which are utilized to update the initial expected loss ratio. There may be a lag between (i) claims being reported by the underlying insured to the Company’s cedent and (ii) claims being reported by the Company’s cedent to the Company. This lag may impact the Company’s loss reserve estimates. Client reports have pre-determined due dates (for example, fifteen days after each month end). As a result, the lag depends in part upon the terms of the specific contract. The timing of the reporting requirements is designed so that the Company receives premium and loss information as soon as practicable once the client has closed its books. Accordingly, there should be a short lag in such reporting. Additionally, most of the contracts that have the potential for large single event losses have provisions that such loss notifications are provided to the Company immediately upon the occurrence of an event. Once the updated information is received, the Company uses a variety of standard actuarial methods for its analysis each quarter. Such methods may include the following: ● Paid Loss Development Method . Ultimate losses are estimated by calculating past paid loss development factors and applying them to exposure periods with further expected paid loss development. The paid loss development method assumes that losses are paid in a consistent pattern. It provides an objective test of reported loss projections because paid losses contain no reserve estimates. ● Reported Loss Development Method. Ultimate losses are estimated by calculating past reported loss development factors and applying them to exposure periods with further expected reported loss development. Since reported losses include payments and case reserves, changes in both of these amounts are incorporated in this method. ● Expected Loss Ratio Method. Ultimate losses are estimated by multiplying earned premiums by an expected loss ratio. The expected loss ratio is selected using industry data, historical company data and actuarial professional judgment. This method is typically used for lines of business and contracts where there are no historical losses or where past loss experience is not considered applicable to the current period. ● Bornhuetter-Ferguson Paid Loss Method. Ultimate losses are estimated by modifying expected loss ratios to the extent that paid losses experienced to date differ from what would have been expected to have been paid based upon the selected paid loss development pattern. This method avoids some of the distortions that could result from a large development factor being applied to a small base of paid losses to calculate ultimate losses. ● Bornhuetter-Ferguson Reported Loss Method. Ultimate losses are estimated by modifying expected loss ratios to the extent reported losses experienced to date differ from what would have been expected to have been reported based upon the selected reported loss development pattern. This method avoids some of the distortions that could result from a large development factor being applied to a small base of reported losses to calculate ultimate losses. ● Frequency / Severity Method. Ultimate losses are estimated under this method by multiplying the ultimate number of claims (i.e. the frequency multiplied by the exposure base on which the frequency has been determined), by the estimated ultimate average cost per claim (i.e. the severity). This approach enables trends and patterns in the rates of claims emergence (i.e. reporting) and settlement (i.e. closure), as well as in the average cost of claims, to be analyzed separately. In addition, the Company may supplement its analysis with other reserving methodologies that are deemed to be relevant to specific contracts. For each contract, the Company utilizes reserving methodologies that are deemed appropriate to calculate a best, or “point,” estimate of reserves. The decision as to whether to use a single methodology or a combination of multiple methodologies depends upon the segment of the portfolio being analyzed and the judgment of the actuaries. The Company’s reserving methodology does not require a fixed weighting of the various methods used. Certain methods are considered more appropriate than others depending on the type, structure, age, maturity and duration of the expected losses on the contract. For example, the ultimate incurred loss for contracts that are relatively new (and therefore have experienced little paid loss development) may be more appropriately estimated using a Bornhuetter-Ferguson reported loss method than a paid loss development method. The Company’s gross aggregate reserves are the sum of the point estimate reserves of all portfolio exposures. Generally, IBNR loss reserves are calculated by estimating the ultimate incurred losses at any point in time and subtracting cumulative paid claims and case reserves. Each quarter, the Company’s reserving committee, which is led by the Chief Actuary, meets to assess the adequacy of our loss reserves based on the reserve analysis and recommendations prepared by the Company’s reserving department. The reserving committee reviews, discusses and puts forward a loss reserve recommendation for the Audit Committee’s approval. Additionally, an independent third-party actuarial firm performs a quarterly reserve review and annually opines on the reasonableness and adequacy of the aggregate loss reserves. The Company provides the third-party actuarial firm with its pricing models, reserving analysis and any other data. Additionally, the actuarial firm may inquire as to the various assumptions and estimates used in the reserving analysis. The actuarial firm independently creates its own reserving models based on industry loss information, augmented by specific client loss information as well as its own independent assumptions and estimates. Based on various reserving methodologies that the actuarial firm considers appropriate, it creates a loss reserve estimate for each segment in the portfolio and recommends an aggregate loss reserve, including IBNR. In the event of material differences between the Company's aggregated booked reserves and the actuarial firm's recommended reserves, the reserving committee and Audit Committee would be notified, with the reserves adjusted as deemed appropriate. To date there have been no material differences resulting from the external actuary’s reviews requiring adjustments to the Company’s booked reserves. We do not typically experience significant claims processing backlogs, although such backlogs may occur following a major catastrophic event. At December 31, 2019 and 2018, we did not have a significant backlog in our claims processing. There were no significant changes in the actuarial methodology or assumptions relating to the Company’s loss and loss adjustment expense reserves during the year ended December 31, 2019 . Notes Receivable Notes receivable represent promissory notes receivable from third parties. These notes are recorded at cost plus accrued interest, if any, net of any valuation allowance. Interest income, change in valuation allowance and realized gains or losses on the sale of notes receivable are included in the caption “Net investment income (loss)” in the Company’s consolidated statements of operations. The Company regularly reviews all notes receivable individually for impairment and records valuation allowance provisions for uncollectible and non-performing notes. When there is uncertainty as to the collection of interest contractually due, the Company places the note on non-accrual status. For notes receivable placed on non-accrual status, the notes are presented excluding any accrued interest amount. The Company resumes the accrual of interest on a note when none of the principal or interest remains past due, and the Company expects to collect the remaining contractual principal and interest. Interest collected on notes that are placed on non-accrual status is recorded as interest income when collected, provided that the recorded value of the note is deemed to be fully collectible. Where doubt exists as to the collectability of the remaining recorded value of the notes placed on non-accrual status, any payments received are applied to reduce the recorded value of the notes. The following table provides a roll-forward of the Company’s provision for valuation allowance: Year ended December 31 2019 2018 2017 ($ in thousands) Balance at beginning of period $ 9,012 $ 9,012 $ 9,012 Net increase (decrease) in provision 5,988 — — Balance at end of period $ 15,000 $ 9,012 $ 9,012 During the year ended December 31, 2019 , the Company increased the valuation allowance for notes receivable by $6.0 million based on management’s assessment of the counterparties’ credit risk, historical experience, the estimated value of any underlying collateral and other relevant factors. At December 31, 2019 , certain notes receivable that were on non-accrual status, had a carrying value (net of valuation allowance) of $0.0 million ( 2018 : $9.8 million ). At December 31, 2019 and 2018 , $0.1 million and $0.2 million , respectively, of accrued interest was included in the caption “Notes receivable” in the Company’s consolidated balance sheets. Management has assessed the carrying values of the notes receivable, net of valuation allowance,at December 31, 2019 and 2018 , to be fully collectible. Deposit Assets and Liabilities The Company applies deposit accounting to reinsurance contracts that do not transfer sufficient insurance risk to merit reinsurance accounting. Under deposit accounting, an asset or liability is recognized based on the consideration paid or received. The deposit asset or liability balance is subsequently adjusted using the interest method with a corresponding income or expense recorded in the Company’s consolidated statements of operations under the caption “Other income (expense).” The Company’s deposit assets and liabilities are recorded in the Company’s consolidated balance sheets in the caption “Reinsurance balances receivable” and “Reinsurance balances payable,” respectively. At December 31, 2019 , deposit assets and deposit liabilities were $5.2 million and $56.9 million , respectively ( 2018 : $11.9 million and $52.9 million , respectively). For the year ended December 31, 2019 , 2018 and 2017 , the interest income (expense) on deposit accounted contracts was as follows: Year ended December 31 2019 2018 2017 ($ in thousands) Deposit interest income $ 3,316 $ 1,224 $ 205 Deposit interest expense (543 ) (1,510 ) (555 ) Deposit interest income (expense), net $ 2,773 $ (286 ) $ (350 ) Equity Method Accounted Investments Investee companies that are not consolidated, but over which the Company exercises significant influence, are accounted for under the equity method of accounting. Whether the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee company’s board of directors and ownership level, which is generally a 20% to 50% interest in the voting securities of the investee company. Under the equity method of accounting, an investee company’s accounts are not reflected within the Company’s consolidated balance sheets and statements of operations; however, the Company’s share of the earnings or losses of the investee company is reflected in the caption ‘‘Net investment income (loss)’’ in the consolidated statements of operations. The Company’s carrying value in an equity method investee company is reflected in the caption ‘‘Other investments’’ in the Company’s consolidated balance sheets. When the Company’s carrying value in an equity method investee company is reduced to zero, no further losses are recorded in the Company’s consolidated financial statements unless the Company guaranteed the obligations of the investee company or has committed additional funding (see Notes 3 and 4 ). Variable Interest Entities The Company accounts for the investments it makes in certain legal entities in which equity investors do not have (1) sufficient equity at risk for the legal entity to finance its activities without additional subordinated financial support, or (2) as a group, the holders of the equity investment at risk do not have either the power, through voting or similar rights, to direct the activities of the legal entity that most significantly impact the entity’s economic performance, or (3) the obligation to absorb the expected losses of the legal entity or the right to receive expected residual returns of the legal entity. These legal entities are referred to as “variable interest entities” or “VIEs.” The Company would consolidate the results of any such entity in which it determined that it had a controlling financial interest. The Company would have a “controlling financial interest” in such an entity if the Company had both the power to direct the activities that most significantly affect the VIE’s economic performance and the obligation to absorb the losses of, or right to receive benefits from, the VIE that could be potentially significant to the VIE. On a quarterly basis, the Company reassesses whether it has a controlling financial interest in any such entities. Financial Instruments The Company invests in debt instruments and equity securities that are classified as “trading securities” and are carried at fair value. The Company purchases “other investments” which may include investments in private and unlisted equity securities, limited partnerships and commodities, all of which are carried at fair value. For securities classified as “trading securities” and “other investments,” any realized and unrealized gains or losses are determined on the basis of the specific identification method (by reference to cost or amortized cost, as appropriate) and included in the caption “Net investment income (loss)” in the Company’s consolidated statements of operations. Interest income and interest expense are recorded on an accrual basis. Prior to the liquidation of the Joint Venture, dividend income and expense were recorded on the ex-dividend date. “Ex-dividend” indicates that the quoted price of a share of stock excludes the value of a declared dividend. Investors purchasing shares between the declaration and ex-dividend dates are entitled to receive the dividend, whereas investors purchasing shares on or after the ex-dividend date are not entitled to the dividend. Transfer of Financial Assets The Company accounts for transfers of financial assets as sales when it has surrendered control over the related assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company’s continuing involvement with the assets transferred. Gains and losses stemming from transfers reported as sales, if any, are included as realized gains (losses) within the caption “Net investment income (loss)” in the accompanying consolidated statements of operations. In instances where a transfer of financial assets does not qualify for sale accounting, the transaction is accounted for as a collateralized borrowing. Accordingly, the related assets remain on the Company’s consolidated balance sheets and continue to be reported and accounted for as if the transfer had not occurred (see Notes 3 and 4 ). Share-Based Compensation The Company has established a stock incentive plan for directors, employees and consultants. The Company recognizes share-based compensation costs on the basis of the fair value at the grant date of the award. The Company measures compensation for restricted shares and restricted stock units (“RSUs”) based on the price of the Company’s common shares at the grant date. For restricted shares and RSUs with both service and performance vesting conditions, the expense is recognized based on management’s estimate of the probability of the performance conditions being achieved based on historical results and expectations of future results. If the performance conditions are expected to be met, the expense is attributed to the period for which the requisite service has been rendered. For restricted shares and RSUs with only service vesting conditions, the expense is recognized on a straight line basis over the vesting period, net of any estimated or expected forfeitures. The forfeiture rate is estimated based on the Company’s historical actual forfeitures relating to restricted shares and RSUs granted to employees. The forfeiture rate is reviewed annually and adjusted as necessary. No forfeiture rate is used for restricted shares granted to directors which vest over a twelve -month period. Determining the fair value of share purchase options at the grant date requires significant estimation and judgment. The Company uses the Black-Scholes option pricing model to assist in the calculation of fair value for share purchase options. The model requires estimation of various inputs such as estimated term, forfeiture and dividend rates and expected volatility. In determining the grant date fair value, the Company uses the full ten -year life of the options as the estimated term, and assumes no forfeitures and no dividends paid during the life of the options. The estimate of expected volatility is based on the daily historical trading data of the Company’s Class A ordinary shares from the date that these shares commenced trading (May 24, 2007) to the grant date. For share purchase options issued under the employee stock incentive plan, the compensation cost is calculated and recognized over the vesting periods on a graded vesting basis (see Note 11 ). Convertible Notes The Company has determined that the senior convertible notes’ cash conversion option represents an embedded derivative, which has therefore been bifurcated from the underlying contract for financial reporting purposes. For the debt component, the Company recorded a liability equivalent to the present value of comparable debt without the conversion features at the time of issuance. The remainder of the proceeds, which represented the embedded derivative, were included in the caption “Additional paid-in capital” in the Company’s consolidated balance sheets. Costs incurred in issuing the convertible notes consisted primarily of underwriting, legal, accounting and printing fees. The Company allocated the costs associated with the debt and derivative components ratably to the liability and shareholders’ equity balances, respectively. The debt-related portion of these costs has been capitalized and deducted from the principal of senior convertible notes payable in the Company’s consolidated balance sheets. These costs are amortized over the term of the debt and are included in the caption “Interest expense” in the Company’s consolidated statements of operations. The issuance costs allocated to the embedded derivative have been deducted from additional paid-in capital. Foreign Exchange The reporting and functional currency of the Company and all its subsidiaries is the U.S. dollar. Transactions in foreign currencies are recorded in U.S. dollars at the exchange rates in effect on the transaction date. Monetary assets and liabilities in foreign currencies at the balance sheet date are converted at the exchange rate in effect at the balance sheet date and exchange gains and losses, if any, are included in the caption “Other income (expense), net” in the Company’s consolidated statements of operations. Other Assets Other assets consist primarily of prepaid expenses, fixed assets, right-of-use lease assets, other receivables and deferred tax assets. Other Liabilities Other liabilities consist primarily of accruals for legal and other professional fees, employee bonuses and lease liabilities. Comprehensive Income (Loss) The Company has no comprehensive income or loss, other than the net income or loss disclosed in the consolidated statements of operations. Earnings (Loss) Per Share The Company’s unvested restricted stock awards, which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are considered “participating securities” for the purposes of calculating earnings (loss) per share. Basic earnings per share is calculated on the basis of the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings (or loss) per share includes the dilutive effect of the following: • Restricted Stock Units (“RSUs”) issued that would convert to common shares upon vesting; • additional potential common shares issuable when stock options are exercised, determined using the treasury stock method; and • those common shares with the potential to be issued by virtue of convertible debt and other such convertible instruments, determined using the treasury stock method. Diluted earnings (or loss) per share contemplates a conversion to common shares of all convertible instruments only if they are dilutive in nature with regards to earnings per share. In the event of a net loss, all RSUs, stock options outstanding, convertible debt and participating securities are excluded from the calculation of both basic and diluted loss per share as their inclusion would be anti-dilutive. The table below presents the shares outstanding for the purposes of the calculation of earnings (loss) per share for the years ended December 31, 2019, 2018 and 2017 : Year ended December 31 2019 2018 2017 Weighted average shares outstanding - basic 36,079,419 35,951,659 37,002,260 Effect of dilutive employee and director share-based awards — — — Weighted average shares outstanding - diluted 36,079,419 35,951,659 37,002,260 Anti-dilutive stock options outstanding 875,627 935,627 358,741 Participating securities excluded from calculation of loss per share 936,669 432,457 331,510 Taxation Under current Cayman Islands law, no corporate entity, including GLRE and Greenlight Re, is obligated to pay taxes in the Cayman Islands on either income or capital gains. The Company has an undertaking from the Governor-in-Cabinet of the Cayman Islands, pursuant to the provisions of the Ta |
INVESTMENT IN RELATED PARTY INV
INVESTMENT IN RELATED PARTY INVESTMENT FUND | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN RELATED PARTY INVESTMENT FUND | INVESTMENT IN RELATED PARTY INVESTMENT FUND Effective September 1, 2018, Greenlight Re and GRIL entered into the SILP LPA with DME II. In accordance with the SILP LPA, DME II serves as the general partner of SILP. On September 1, 2018, SILP entered into a SILP investment advisory agreement (“IAA”) with DME Advisors pursuant to which DME Advisors is the investment manager for SILP. In addition, on September 1, 2018, Greenlight Re and GRIL, together the “GLRE Limited Partners,” and SILP executed a Participation Agreement pursuant to which the GLRE Limited Partners transferred a participation interest in the assets that were subject to the Joint Venture (except for certain assets that were mutually agreed and excluded from participating) to SILP (collectively referred to as the “LP Transaction.”) SILP issued limited partner interests to the GLRE Limited Partners proportionate to and based on the net asset value transferred by each such entity effective September 1, 2018. The Joint Venture was terminated on January 2, 2019, the date by which all assets were transferred to SILP in accordance with the SILP LPA. The Company has concluded that SILP qualifies as a variable interest entity (“VIE”) under U.S. GAAP. In assessing its interest in SILP, the Company noted the following: • DME II serves as SILP’s general partner and has the power of appointing the investment manager. The Company does not have the power to appoint, change or replace the investment manager or the general partner except “for cause.” Neither of the GLRE Limited Partners can participate in the investment decisions of SILP as long as SILP adheres to the investment guidelines provided within the SILP LPA. For these reasons, the GLRE Limited Partners are not considered to have substantive participating rights or kick-out rights. • DME II holds an interest in excess of 10% of SILP’s net assets which the Company considers to represent an obligation to absorb losses and a right to receive benefits of SILP that are significant to SILP. Consequently, the Company has concluded that DME II’s interests, and not the Company’s, meet both the “power” and “benefits” criteria associated with VIE accounting guidance, and therefore DME II is SILP’s primary beneficiary. The Company’s investment in SILP is presented in the Company’s consolidated balance sheets in the caption “Investment in related party investment fund.” The Company accounted for the transfer of the investment assets to SILP as a sale. The underlying investment liabilities were extinguished from the Company’s consolidated balance sheet as they were either settled, novated or legally transferred to SILP as part of the LP Transaction. There were no net gains or losses resulting from the transfer of net assets, and there was no cash paid or received by the Company as part of the LP Transaction. At December 31, 2018, certain assets that were subject to the Participation Agreement for which the GLRE Limited Partners received an interest in SILP had not transferred legal title to SILP. The Company accounted for those assets as collateralized borrowing and recorded a liability in the caption “Due to related party investment fund.” These assets were transferred to SILP during the first quarter of 2019. During the year ended December 31, 2019 , SILP’s investment portfolio was de-risked in order to reduce the Company’s investment volatility in the near-term. As a result, a large proportion of the Company’s investment assets in SILP was held in cash and short-term treasuries as of December 31, 2019 . The Company’s maximum exposure to loss relating to SILP is limited to the net asset value of the GLRE Limited Partners’ investment in SILP. As of December 31, 2019 , the net asset value of the GLRE Limited Partners’ investment in SILP was $240.1 million (2018: $235.6 million ), representing 81.0% (2018: 84.9% ) of SILP’s total net assets. The remaining 19.0% (2018: 15.1% ) of SILP’s total net assets was held by DME II. The investment in SILP is recorded at the GLRE Limited Partners’ share of the net asset value of SILP as reported by SILP’s third-party administrator. The GLRE Limited Partners can redeem their assets from SILP for operational purposes by providing three business days’ notice to DME II. As of December 31, 2019 , the majority of SILP’s long investments are composed of cash, short-term U.S. treasuries and publicly-traded equity securities, which can be readily liquidated to meet any GLRE Limited Partner’s redemption requests. The Company’s share of the change in the net asset value of SILP for the year ended December 31, 2019 and the period from September 1, 2018 (commencement of operations) to December 31, 2018 was $46.1 million and $(60.6) million , respectively, and shown in the caption “Income (loss) from investment in related party investment fund” in the Company’s consolidated statements of operations. During the first quarter of 2019, the Company transferred the rights to $36.7 million of remaining net investments from Greenlight Re and GRIL’s Joint Venture investment accounts to SILP in exchange for limited partnership interests of the same amount, resulting in no net gain or loss. As of December 31, 2019 , the Company’s investments in SILP was in excess of 10% of the Company’s total shareholders’ equity, with fair value of $240.1 million ( 2018 : $235.6 million ), representing 50.3% ( 2018 : 49.3% ), of total shareholders’ equity. The Company has determined that for its fiscal year ended December 31, 2019 , the Company’s investment in SILP met at least one of the conditions of a significant subsidiary under SEC’s Regulation S-X, Rule 3-09. Accordingly, the audited financial statements for SILP have been attached as an exhibit (Exhibit 99.1) to this Form 10-K. The summarized financial statements of SILP are presented below. Summarized Statement of Assets and Liabilities of Solasglas Investments, LP December 31, 2019 December 31, 2018 ($ in thousands) Assets Investments, at fair value $ 162,928 $ 401,318 Derivative contracts, at fair value 6,324 63,143 Due from brokers 68,060 77,821 Cash and cash equivalents 111,046 13,200 Interest and dividends receivable 47 2,358 Total assets 348,405 557,840 Liabilities and partners’ capital Liabilities Investments sold, not yet purchased, at fair value (47,834 ) (198,728 ) Notes Payable — (30,000 ) Derivative contracts, at fair value (2,054 ) (26,344 ) Due to brokers (1,180 ) (23,951 ) Interest and dividends payable (828 ) (1,238 ) Other liabilities (101 ) (169 ) Total liabilities (51,997 ) (280,430 ) Net Assets $ 296,408 $ 277,410 GLRE Limited Partners’ share of Net Assets $ 240,056 $ 235,612 Summarized Statement of Operations of Solasglas Investments, LP Year ended December 31, 2019 From September 1, 2018 (commencement of operations) to December 31, 2018 ($ in thousands) Investment income Dividend income (net of withholding taxes) $ 3,179 $ 2,160 Interest income 3,884 1,868 Total Investment income 7,063 4,028 Expenses Management fee (4,893 ) (3,100 ) Interest (2,408 ) (2,627 ) Dividends (1,670 ) (1,608 ) Professional fees and other (1,141 ) (483 ) Total expenses (10,112 ) (7,818 ) Net investment income (loss) (3,049 ) (3,790 ) Realized and change in unrealized gains (losses) Net realized gain (loss) 34,539 (80,996 ) Net change in unrealized appreciation (depreciation) 28,515 14,789 Net gain (loss) on investment transactions 63,054 (66,207 ) Net income (loss) $ 60,005 $ (69,997 ) GLRE Limited Partners’ share of net income (loss) (1) $ 46,056 $ (60,573 ) 1 Net of management fees of $4.9 million and $3.1 million for year ended December 31, 2019 and the period from September 1, 2018 (inception) to December 31, 2018 respectively, and net of accrued performance allocation of $5.0 million and nil for the year ended December 31, 2019 and the period from inception to December 31, 2018, respectively. See Note 14 for further details. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Prior to the termination of the Joint Venture, the Company, via the Joint Venture, purchased and sold various financial instruments, including listed and unlisted equities, corporate and sovereign debt, commodities, futures, put and call options, currency forwards, other derivatives and similar instruments sold, not yet purchased. These instruments were transferred to SILP as part of the LP Transaction. See Note 3 for further details. Purchases and sales of investments are disclosed in the Company’s consolidated statements of cash flows. The following table summarizes the change in unrealized gains and losses and the realized gains and losses on financial instruments included in the caption “Net investment income (loss)” in the Company’s consolidated statements of operations for the years ended December 31, 2019 , 2018 and 2017 : Year ended December 31 2019 2018 2017 ($ in thousands) Gross realized gains $ — $ 303,674 $ 267,904 Gross realized losses (14,150 ) (540,561 ) (180,286 ) Net realized gains (losses) $ (14,150 ) $ (236,887 ) $ 87,618 Change in unrealized gains and losses $ 8,380 $ (32,597 ) $ (41,444 ) Investments Equity securities, trading At December 31, 2019 , the Company held no equity securities. At December 31, 2018 , the following long positions were included in the caption “Equity securities, trading”: Cost Unrealized gains Unrealized losses Fair value ($ in thousands) Equities – listed $ 50,521 $ 1,015 $ (14,628 ) $ 36,908 Total equity securities $ 50,521 $ 1,015 $ (14,628 ) $ 36,908 Other Investments “Other investments” include private securities and investments accounted for under the equity method which are not significant to present separately on the balance sheet. At December 31, 2019 , the following securities were included in the caption “Other investments”: Cost Unrealized Unrealized Fair value / carrying value ($ in thousands) Private investments and unlisted equities $ 10,420 $ 265 $ (4 ) $ 10,681 Investment accounted for under the equity method — — — 5,703 Total other investments $ 16,384 At December 31, 2018 , the following securities were included in the caption “Other investments”: Cost Unrealized Unrealized Fair value / carrying value ($ in thousands) Private investments and unlisted equity funds $ 6,672 $ — $ (267 ) $ 6,405 Investment accounted for under the equity method — — — 5,003 Total other investments $ 11,408 Private and unlisted equity funds include private equity securities that did not have readily determinable fair values and the Company applied the measurement alternative under ASU 2016-01 and ASU 2018-03. The carrying values of the private equity securities are determined based on the original cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. At December 31, 2019 the carrying value of the private equity securities without readily determinable fair value was $10.7 million (December 31, 2018 : $6.4 million ). The carrying value of these private equity securities included an upward adjustment of $0.2 million based on an observable price change during the year ended December 31, 2019. There were no other significant upward or downward adjustments to the carrying values of the private equity securities for the year ended December 31, 2019 . At December 31, 2019 , the Company held a 58% interest in AccuRisk Holdings LLC (“AccuRisk”) and had provided a $6.0 million credit facility to AccuRisk. The Company’s involvement in AccuRisk includes providing capital and funding for AccuRisk’s expansion plans and providing reinsurance to business produced by AccuRisk. The Company has determined that AccuRisk is a VIE, of which the Company is not the primary beneficiary. The Company has accounted for its investment in AccuRisk under the equity method and included it in the caption “Other Investments” in the Company’s consolidated balance sheets. The carrying value of AccuRisk is adjusted based on the Company’s share of ownership, including its share of the income (loss) reported in quarterly management accounts by AccuRisk. The Company’s maximum exposure to loss relating to AccuRisk is limited to the carrying amount of its investment in AccuRisk plus any loans outstanding to AccuRisk (see Note 15 ). For the year ended December 31, 2019 , the Company’s share of AccuRisk’s net income (loss) was $0.7 million ( 2018 : $(0.2) million ) which was included in the caption “Net investment income (loss)” in the Company’s consolidated statements of operations. Fair Value Hierarchy The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on whether the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: • Level 1: Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. • Level 2: Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. • Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs. As of December 31, 2019 , the Company did not carry any investments at fair value that were assigned a Level within the fair value hierarchy. The following table presents the Company’s investments, categorized by the level of the fair value hierarchy as of December 31, 2018 : Fair value measurements as of December 31, 2018 Quoted prices in Significant other Significant Total Assets: ($ in thousands) Listed equity securities $ 36,908 $ — $ — $ 36,908 Private and unlisted equity securities — — 664 664 $ 36,908 $ — $ 664 $ 37,572 Investment in related party investment fund measured at net asset value (1) (2) 235,612 Equities without readily determinable fair values for which measurement alternative is applied 5,741 Investment accounted for under the equity method 5,003 Total investments $ 283,928 (1) Investments measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The fair value amounts are presented in the above table to facilitate reconciliation to the consolidated balance sheets. (2) See Note 3 “Investment in related party investment fund”. The Company’s ”Investment in related party investment fund” is measured at fair value using the net asset value practical expedient, and is therefore not classified within the fair value hierarchy (See Note 3 for further details). The carrying value of investments accounted for under the equity method is based on the Company's share of the investees’ net assets. The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the year ended December 31, 2019 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year ended December 31, 2019 Assets Debt instruments Private and unlisted equity securities Total ($ in thousands) Beginning balance $ — $ 664 $ 664 Sales — (664 ) (664 ) Total realized and unrealized gains (losses) and amortization included in earnings, net — — — Transfers out of Level 3 — — — Ending balance $ — $ — $ — During the year ended December 31, 2019 , the sales of private and unlisted equities measured at fair value using Level 3 inputs were the result of the LP Transaction. There were no other transfers between Level 1, Level 2 or Level 3 during the year ended December 31, 2019 . The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the year ended December 31, 2018: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year ended December 31, 2018 Assets Debt instruments Private and unlisted equity securities Total ($ in thousands) Beginning balance $ 880 $ 6,108 $ 6,988 Sales $ (916 ) $ (1,890 ) $ (2,806 ) Total realized and unrealized gains (losses) and amortization included in earnings, net $ 36 $ (304 ) $ (268 ) Transfers out of Level 3 $ — $ (3,250 ) $ (3,250 ) Ending balance $ — $ 664 $ 664 During the year ended December 31, 2018, the sales of debt instruments and private and unlisted equities measured at fair value using Level 3 inputs were the result of the LP Transaction. For the year ended December 31, 2018 the private and unlisted equity securities without readily determinable fair values, for which measurement alternative is applied, were transferred out of Level 3 fair value hierarchy. There were no other transfers between Level 1, Level 2 or Level 3 during the year ended December 31, 2018. Financial Instruments Disclosed, But Not Carried, at Fair Value The captions “Notes receivable (net of valuation allowance)” and “Convertible senior notes payable” are composed of financial instruments that are carried at amortized cost. The carry values of these financial instruments approximate their fair values, which the Company has determined on the basis of Level 2 inputs for its convertible senior notes payable, and Level 3 inputs for its notes receivable. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS The Company’s cash and cash equivalents as of December 31, 2019 and 2018 were composed of the following: December 31, 2019 December 31, 2018 ($ in thousands) Cash at banks $ 25,813 $ 7,295 Cash held with brokers — 10,920 Total cash and cash equivalents $ 25,813 $ 18,215 Due to the short term nature of cash and cash equivalents, the above noted carrying values approximate their fair value. Cash at banks include cash held at non-U.S. financial institutions which are not insured by the FDIC or any other deposit insurance programs. RESTRICTED CASH AND CASH EQUIVALENTS Restricted cash and cash equivalents include amounts held by the Company but pledged as security to provide collateral required by the cedents in the form of trust accounts and letters of credit (see Note 15 ). As of December 31, 2019 and 2018 , the restricted cash and cash equivalents were composed of the following: December 31, 2019 December 31, 2018 ($ in thousands) Cash held as collateral in trust accounts $ 528,686 $ 463,361 Cash collateral relating to letters of credit issued 213,407 221,655 Total restricted cash and cash equivalents $ 742,093 $ 685,016 |
RESTRICTED CASH AND CASH EQUIVA
RESTRICTED CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS The Company’s cash and cash equivalents as of December 31, 2019 and 2018 were composed of the following: December 31, 2019 December 31, 2018 ($ in thousands) Cash at banks $ 25,813 $ 7,295 Cash held with brokers — 10,920 Total cash and cash equivalents $ 25,813 $ 18,215 Due to the short term nature of cash and cash equivalents, the above noted carrying values approximate their fair value. Cash at banks include cash held at non-U.S. financial institutions which are not insured by the FDIC or any other deposit insurance programs. RESTRICTED CASH AND CASH EQUIVALENTS Restricted cash and cash equivalents include amounts held by the Company but pledged as security to provide collateral required by the cedents in the form of trust accounts and letters of credit (see Note 15 ). As of December 31, 2019 and 2018 , the restricted cash and cash equivalents were composed of the following: December 31, 2019 December 31, 2018 ($ in thousands) Cash held as collateral in trust accounts $ 528,686 $ 463,361 Cash collateral relating to letters of credit issued 213,407 221,655 Total restricted cash and cash equivalents $ 742,093 $ 685,016 |
LOSS AND LOSS ADJUSTMENT EXPENS
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES | 12 Months Ended |
Dec. 31, 2019 | |
Insurance Loss Reserves [Abstract] | |
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES | LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES There were no significant changes in the actuarial methodology or assumptions relating to the Company’s loss and loss adjustment expense reserves for the year ended December 31, 2019 . At December 31, 2019 and 2018 , loss and loss adjustment expense reserves were composed of the following: 2019 2018 ($ in thousands) Case reserves $ 217,834 $ 211,910 IBNR 252,754 270,752 Total $ 470,588 $ 482,662 A summary of changes in outstanding loss and loss adjustment expense reserves for all lines of business consolidated for the years ended December 31, 2019, 2018 and 2017 is as follows: Consolidated 2019 2018 2017 ($ in thousands) Gross balance at January 1 $ 482,662 $ 464,380 $ 306,641 Less: Losses recoverable (43,705 ) (29,459 ) (2,704 ) Net balance at January 1 438,957 434,921 303,937 Incurred losses related to: Current year 357,237 363,871 466,247 Prior years 31,250 2 36,157 Total incurred 388,487 363,873 502,404 Paid losses related to: Current year (167,508 ) (160,975 ) (220,298 ) Prior years (217,998 ) (197,097 ) (154,183 ) Total paid (385,506 ) (358,072 ) (374,481 ) Foreign currency revaluation 1,119 (1,765 ) 3,061 Net balance at December 31 443,057 438,957 434,921 Add: Losses recoverable 27,531 43,705 29,459 Gross balance at December 31 $ 470,588 $ 482,662 $ 464,380 The changes in the outstanding loss and loss adjustment expense reserves for health claims for the years ended December 31, 2019, 2018 and 2017 are as follows: Health 2019 2018 2017 ($ in thousands) Gross balance at January 1 $ 24,502 $ 22,181 $ 18,993 Less: Losses recoverable — — — Net balance at January 1 24,502 22,181 18,993 Incurred losses related to: Current year 33,736 56,868 44,539 Prior years 3,569 1,508 3,739 Total incurred 37,305 58,376 48,278 Paid losses related to: Current year (17,410 ) (34,696 ) (23,814 ) Prior years (26,334 ) (21,359 ) (21,276 ) Total paid (43,744 ) (56,055 ) (45,090 ) Foreign currency revaluation — — — Net balance at December 31 18,063 24,502 22,181 Add: Losses recoverable — — — Gross balance at December 31 $ 18,063 $ 24,502 $ 22,181 Loss development Year ended December 31, 2019 During the year ended December 31, 2019 , the Company experienced $31.3 million in net adverse development on prior year loss and LAE reserves. This net adverse development resulted primarily from the following: Adverse developments: • $39.8 million of adverse loss development on non-standard automobile contracts. These unanticipated automobile losses were the result of adverse rulings that affected a significant number of loss events that occurred in Florida between 2015 and early 2018, including many claims that had previously been considered closed; and • $3.6 million of adverse loss development on specialty health contracts arising from an unexpectedly high frequency of medical claims reported. Favorable developments: • $13.5 million of favorable development on prior year property and multi-line contracts primarily resulting from lower than anticipated losses relating to California wildfires. The remaining net favorable development on prior year loss and LAE reserves recognized in 2019 related to several smaller adjustments made across various lines of business. Year ended December 31, 2018 During the year ended December 31, 2018, the Company experienced a modest $2.2 thousand in net adverse development on prior year loss and LAE reserves. This net adverse development resulted primarily from the following: Adverse developments: • $11.9 million of adverse loss development on non-standard automobile contracts stemming from industry-wide issues affecting motor liability claims in Florida over accident years 2015 to 2017; • $3.8 million of adverse loss development on solicitors professional indemnity contracts resulting primarily from several large claims being reported on prior accident years; • $2.0 million of adverse loss development on general liability contracts, spread over treaty years 2012-2017, resulting from deteriorations in claims experience; and • $1.8 million of adverse loss development on surety business, net of retrocession recoveries, due to deterioration on several previously reported claims for one contract. Favorable developments: • $7.5 million of favorable prior period experience on property contracts stemming primarily from accident years 2015 and 2016 where claims experience has been better than expected; • $5.9 million of favorable loss development, net of retrocession recoveries, relating to 2017 hurricanes as a result of claims experience being better than initially estimated. The net financial impact of the favorable loss development was partially offset by $1.6 million of return premiums relating to reinstatement premiums previously recorded; and • $4.1 million of favorable loss development on prior period mortgage insurance contracts resulting from ongoing favorable claims experience across all prior accident years. The remaining net favorable development on prior year loss and LAE reserves recognized in 2018 related to several smaller adjustments made across various lines of business. Year ended December 31, 2017 During the year ended December 31, 2017, the Company experienced $36.2 million in net adverse development on prior year loss and LAE reserves. This net adverse development resulted primarily from the following: • $10.7 million of adverse loss development associated with various classes of professional liability exposure, driven by additional reporting on individual claims, as well as the Company’s assessment of industry-wide loss ratio performance; • $4.3 million of adverse loss development associated with motor contracts based on re-projection of ultimate losses using client reporting patterns; • $4.1 million of adverse loss development relating to Florida homeowners’ insurance contracts, largely driven by “assignment of benefits” issues whereby homeowners assign their rights for filing and settling claims to attorneys and public adjusters; • $3.7 million of adverse loss development associated with specialty health contracts arising from frequency of medical claims reported; and • $2.2 million of adverse loss development due to large claims reported on a surety contract. The remaining net adverse development on prior year loss and LAE reserves recognized in 2017 related to several smaller adjustments made across various lines of business. Disclosures about Short Duration Contracts The Company manages its business on the basis of one operating segment, Property & Casualty Reinsurance, and categorizes its business as Property, Casualty and Other. The Company’s loss development tables presented below have been disaggregated by lines of business for the years ended from December 31, 2010 to 2019. For purposes of the loss development tables, the property business has been further disaggregated into "Property" and "Motor - Physical Damage". The casualty category has been disaggregated into "General Liability", "Motor Liability", "Professional Liability" and "Workers' Compensation". In addition, the incurred and paid claims relating to accident and health business have been presented separately as "Health". Other specialty business including financial, aviation, energy and marine, which are individually insignificant to our overall business, have been grouped together as "Other". Contracts that cover more than one line of business are grouped as "Multi-line". For each of the categories, the following tables present the incurred and paid claims development as of December 31, 2019 , net of retrocession, as well as the total of incurred but not reported liabilities plus expected development on reported claims included within the net incurred claims amount. Health claims have been disaggregated and presented separately. The information in the tables below about incurred and paid claims development for the years ended December 31, 2010 to 2018 , is presented as unaudited supplementary information. Health Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 36,075 $ 35,924 $ 36,224 $ 36,159 $ 36,159 $ 36,145 $ 36,145 $ 36,145 $ 36,145 $ 36,145 $ — 2011 36,140 36,212 35,821 35,800 35,595 35,595 35,595 35,566 35,566 — 2012 24,712 23,088 22,780 22,681 22,671 22,671 22,658 22,658 — 2013 30,544 33,841 34,203 33,960 33,945 33,945 33,944 — 2014 32,875 30,191 29,514 29,072 29,031 28,970 — 2015 34,097 33,530 34,116 33,894 33,885 9 2016 37,747 40,889 41,255 41,355 193 2017 45,007 46,455 46,687 72 2018 56,868 60,176 1,463 2019 33,736 16,326 Total $ 373,122 18,063 Health Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 17,826 $ 35,795 $ 36,224 $ 36,159 $ 36,159 $ 36,145 $ 36,145 $ 36,145 $ 36,145 $ 36,145 2011 26,979 35,542 35,814 35,800 35,595 35,595 35,595 35,566 35,566 2012 14,896 22,691 22,780 22,679 22,671 22,671 22,658 22,658 2013 21,459 33,841 34,024 33,957 33,944 33,944 33,944 2014 19,056 28,515 29,117 29,038 29,032 28,970 2015 14,529 31,802 34,044 33,894 33,876 2016 21,881 39,988 41,255 41,162 2017 23,834 44,125 46,615 2018 34,696 58,713 2019 17,410 Total 355,059 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Health) $ 18,063 Multiline Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — 2011 — — — — — — — — — — 2012 — — — — — — — — — 2013 — — — — — — — — 2014 2,390 2,390 2,390 2,609 2,625 2,586 1,173 2015 27,956 28,103 30,536 32,038 30,941 11,885 2016 55,758 60,042 60,757 59,805 26,803 2017 81,836 79,466 83,232 43,596 2018 58,832 50,944 30,215 2019 46,131 35,096 Total $ 273,639 $ 148,768 Multiline Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — 2011 — — — — — — — — — 2012 — — — — — — — — 2013 — — — — — — — 2014 — — 145 566 1,092 1,413 2015 30 2,828 9,990 16,107 19,056 2016 5,859 16,577 27,108 33,002 2017 9,562 27,363 39,636 2018 8,134 20,729 2019 11,035 Total 124,871 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Multiline) $ 148,768 General Liability Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 12,111 $ 14,327 $ 17,484 $ 19,649 $ 21,664 $ 25,946 $ 28,251 $ 28,251 $ 28,251 $ 28,251 $ — 2011 20,925 30,693 40,756 44,897 61,446 77,105 77,105 77,105 77,105 — 2012 12,626 18,133 16,921 29,554 31,145 31,161 31,274 30,902 — 2013 3,018 2,689 4,666 4,511 4,510 4,916 4,770 — 2014 1,238 1,229 1,174 1,033 1,355 1,000 238 2015 1,699 1,690 1,756 1,979 2,152 1,227 2016 6,203 6,519 7,124 7,867 3,197 2017 5,431 6,525 7,379 4,556 2018 2,901 3,438 2,152 2019 1,002 976 Total $ 163,866 $ 12,346 General Liability Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 2,107 $ 5,096 $ 9,356 $ 14,051 $ 17,471 $ 19,228 $ 28,251 $ 28,251 $ 28,251 $ 28,251 2011 2,873 11,751 20,030 25,018 32,954 77,105 77,105 77,105 77,105 2012 1,750 9,926 13,142 15,836 30,667 30,687 30,891 30,902 2013 1,371 1,917 2,298 4,191 4,274 4,652 4,770 2014 18 146 413 548 492 762 2015 69 293 532 547 925 2016 122 1,589 3,277 4,670 2017 136 1,412 2,823 2018 165 1,286 2019 26 Total 151,520 All outstanding liabilities before 2010, net of reinsurance 3 Liabilities for claims and claims adjustment expenses, net of reinsurance (General Liability) $ 12,349 Motor Casualty Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 64,264 $ 74,260 $ 86,881 $ 83,496 $ 84,742 $ 88,377 $ 88,022 $ 88,008 $ 88,012 $ 88,034 $ — 2011 53,035 57,498 57,342 62,921 70,880 70,435 70,495 70,495 70,478 — 2012 132,284 131,196 131,896 131,202 131,305 131,302 131,302 131,302 — 2013 182,833 179,930 174,744 174,782 174,848 174,925 174,931 — 2014 93,718 92,844 94,688 94,385 94,147 94,192 — 2015 128,199 130,410 129,991 132,853 134,951 1,278 2016 166,389 169,294 174,037 179,801 1,001 2017 187,109 188,754 195,258 7,033 2018 150,700 170,016 26,749 2019 168,154 69,111 Total $ 1,407,117 $ 105,172 Motor Casualty Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 23,413 $ 44,889 $ 60,630 $ 70,356 $ 79,089 $ 82,266 $ 88,008 $ 88,008 $ 88,012 $ 88,034 2011 19,082 36,462 49,569 58,244 65,018 70,433 70,433 70,433 70,478 2012 58,585 118,142 126,622 128,913 131,302 131,302 131,302 131,302 2013 86,558 159,200 171,855 174,658 174,848 174,925 174,931 2014 49,994 86,297 89,687 94,385 94,147 94,192 2015 81,093 125,645 129,174 129,571 133,673 2016 97,325 157,948 170,658 178,800 2017 115,204 170,157 188,225 2018 83,652 143,267 2019 99,043 Total 1,301,945 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Motor Casualty) $ 105,172 Motor Property Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 560 $ 656 $ 671 $ 684 $ 662 $ 662 $ 667 $ 667 $ 667 $ 667 $ — 2011 3,276 3,271 3,343 3,285 3,285 3,306 3,306 3,306 3,303 — 2012 36,985 36,129 36,008 35,998 35,922 35,922 35,922 35,922 — 2013 46,189 45,629 44,728 44,656 44,695 44,719 44,478 — 2014 18,870 18,797 19,056 19,000 19,006 19,021 — 2015 22,035 22,516 22,505 23,263 23,939 100 2016 27,853 28,279 29,090 29,051 200 2017 39,986 39,621 40,394 683 2018 42,336 47,209 7,091 2019 43,103 18,000 Total $ 287,087 $ 26,074 Motor Property Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 560 $ 620 $ 620 $ 620 $ 620 $ 644 $ 667 $ 667 $ 667 $ 667 2011 1,418 2,944 3,305 3,285 3,285 3,303 3,303 3,303 3,303 2012 16,902 34,588 35,854 35,903 35,922 35,922 35,922 35,922 2013 21,112 41,066 44,363 44,431 44,476 44,476 44,478 2014 10,305 17,621 18,420 19,000 19,006 19,021 2015 13,859 22,013 22,505 22,595 23,839 2016 16,725 27,023 28,609 28,851 2017 23,091 37,058 39,711 2018 23,576 40,118 2019 25,103 Total 261,013 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Motor Property) $ 26,074 Other Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 4,008 $ 3,858 $ 4,291 $ 4,130 $ 4,130 $ 4,130 $ 3,955 $ 4,130 $ 3,955 $ 3,955 $ — 2011 7,360 8,099 7,525 7,473 7,470 7,468 7,468 7,468 7,468 — 2012 4,017 3,591 3,756 3,773 3,759 3,755 3,782 3,777 42 2013 2,492 2,875 2,840 2,821 2,801 2,755 2,586 46 2014 4,768 3,525 1,776 1,701 1,084 2,125 — 2015 4,794 6,769 6,898 4,519 4,229 298 2016 8,360 10,401 9,142 9,131 1,751 2017 9,087 6,011 6,447 1,913 2018 6,165 7,519 1,931 2019 19,225 13,828 Total $ 66,462 $ 19,809 Other Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 864 $ 1,593 $ 3,123 $ 3,130 $ 3,406 $ 3,477 $ 3,955 $ 3,955 $ 3,955 $ 3,955 2011 1,162 7,547 7,513 7,468 7,468 7,468 7,468 7,468 7,468 2012 3,002 3,251 3,676 3,683 3,684 3,688 3,735 3,735 2013 213 1,828 2,426 2,339 2,323 2,578 2,540 2014 197 659 1,124 1,282 1,084 2,125 2015 472 1,387 2,010 3,399 3,931 2016 1,473 3,107 5,646 7,380 2017 484 3,083 4,534 2018 962 5,588 2019 5,397 Total 46,653 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Other) $ 19,809 Property Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 39,106 $ 41,983 $ 51,698 $ 51,483 $ 52,263 $ 52,507 $ 53,723 $ 53,574 $ 53,495 $ 53,506 $ — 2011 73,309 83,261 79,794 80,402 81,894 83,012 83,067 83,006 83,296 — 2012 63,961 50,183 50,874 52,812 53,218 53,473 53,737 53,823 — 2013 60,955 59,002 61,786 62,504 62,491 62,431 62,774 537 2014 41,740 45,153 46,845 47,085 46,874 47,030 510 2015 27,872 30,352 31,752 30,954 30,615 593 2016 25,633 26,127 24,005 23,477 1,450 2017 84,771 78,430 69,042 4,804 2018 28,219 30,291 14,563 2019 22,738 18,684 Total $ 476,592 $ 41,141 Property Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 20,611 $ 40,858 $ 42,697 $ 43,406 $ 47,914 $ 48,438 $ 53,408 $ 53,542 $ 53,495 $ 53,506 2011 49,441 74,383 77,182 79,022 81,214 82,370 82,655 83,006 83,296 2012 32,085 45,887 50,242 52,657 53,211 53,259 53,737 53,823 2013 34,807 55,674 58,533 60,352 61,083 61,996 62,237 2014 20,230 40,172 43,640 45,211 46,301 46,520 2015 12,939 25,453 28,846 29,816 30,022 2016 9,944 18,198 21,040 22,027 2017 43,281 56,397 64,238 2018 5,365 15,728 2019 4,054 Total 435,451 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Property) $ 41,141 Professional Liability Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 3,875 $ 3,331 $ 3,571 $ 3,713 $ 3,907 $ 3,936 $ 3,922 $ 3,921 $ 3,921 $ 3,921 $ 424 2011 6,043 6,910 7,367 8,064 8,121 7,950 8,196 8,196 8,023 262 2012 11,236 11,241 11,785 12,221 12,411 13,131 13,131 12,565 885 2013 12,435 13,319 14,844 16,494 17,314 17,489 17,290 2,614 2014 19,229 18,630 18,593 21,149 22,152 22,475 6,017 2015 18,548 18,545 21,100 22,528 22,748 9,952 2016 13,778 16,960 17,328 16,925 9,028 2017 10,252 9,940 9,762 6,673 2018 4,482 4,468 3,327 2019 586 441 Total $ 118,763 $ 39,623 Professional Liability Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ — $ 35 $ 402 $ 834 $ 1,112 $ 1,478 $ 1,620 $ 1,740 $ 3,497 $ 3,497 2011 110 1,331 3,680 5,244 6,580 7,285 7,781 7,830 7,761 2012 533 3,668 6,392 8,836 10,268 11,780 11,947 11,680 2013 710 3,482 7,771 11,175 14,092 14,863 14,676 2014 1,370 5,440 9,716 14,173 16,448 16,458 2015 1,186 3,349 9,012 11,953 12,796 2016 342 2,187 4,915 7,897 2017 228 1,437 3,089 2018 241 1,141 2019 145 Total 79,140 All outstanding liabilities before 2010, net of reinsurance 2,120 Liabilities for claims and claims adjustment expenses, net of reinsurance (Professional Liability) $ 41,743 Workers' Compensation Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 11,181 $ 11,736 $ 12,426 $ 13,108 $ 13,108 $ 13,108 $ 13,108 $ 13,108 $ 13,108 $ 13,108 $ — 2011 14,915 15,233 16,861 16,861 16,861 16,861 16,861 16,861 16,861 — 2012 11,763 12,213 12,213 12,213 12,213 12,213 12,213 12,213 — 2013 4,751 4,751 4,751 4,751 4,751 4,751 4,751 — 2014 — — — 3 — — — 2015 1,014 1,010 948 950 951 174 2016 4,342 4,275 4,266 3,975 701 2017 10,882 10,346 9,603 2,204 2018 13,609 13,499 5,178 2019 22,927 17,454 Total $ 97,888 $ 25,711 Workers' Compensation Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 3,184 $ 8,170 $ 12,270 $ 13,108 $ 13,108 $ 13,108 $ 13,108 $ 13,108 $ 13,108 $ 13,108 2011 5,004 11,175 16,861 16,861 16,861 16,861 16,861 16,861 16,861 2012 2,359 12,213 12,213 12,213 12,213 12,213 12,213 12,213 2013 4,751 4,751 4,751 4,751 4,751 4,751 4,751 2014 — — — — — — 2015 28 251 564 688 777 2016 613 1,920 2,782 3,274 2017 2,028 5,356 7,399 2018 4,213 8,321 2019 5,473 Total 72,177 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Workers' Compensation) $ 25,711 For any incurred and paid claims denominated in a currency other than U.S. dollars, the above tables are presented using the foreign exchange rate in effect as of the current year end date. As a result, all prior year information has been restated to reflect the exchange rates as of December 31, 2019 . This treatment removes any changes in foreign currency exchange rates from distorting the claims development between the years presented. For assumed contracts the Company does not generally receive claims information by accident year from the ceding insurers, but instead receives claims information by the treaty year of the contract. Claims reported by the ceding insurer to the Company may have the covered losses occurring in an accident year other than the treaty year. For the purpose of the loss development tables, some incurred and paid claims have been allocated to the accident years based on the proportion of premiums earned for each contract during such accident year. For example, a one-year treaty incepting on October 1, 2010 (with underlying policies each having a one-year duration), would have a 24-month period over which the premiums would be earned. Therefore, claims would be allocated to accident years 2010, 2011 and 2012 based on the proportion of the premiums earned during each accident year. For illustration of this contract, any claims reported during 2010 would be allocated to the 2010 accident year. For losses reported during 2011, the claims would be allocated between 2010 and 2011 based on the percentage of premiums earned during 2010 and 2011. Similarly, for losses reported during 2012 and thereafter, the losses would be allocated to the 2010, 2011 and 2012 accident years based on the proportion of premiums earned during each of those years. However, natural catastrophe and certain other large losses are addressed separately and are assigned to the accident year in which they occurred. The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated balance sheet is as follows: December 31, 2019 ($ in thousands) Net outstanding liabilities Health $ 18,063 Multiline 148,768 General Liability 12,349 Motor Casualty 105,172 Motor Property 26,074 Other 19,809 Property 41,141 Professional Liability 41,743 Workers' Compensation 25,711 Liabilities for claims and claims adjustment expenses, net of reinsurance 438,830 Add: Reinsurance recoverable on unpaid claims 27,531 Add: Unallocated claims adjustment expenses 4,227 Total gross liabilities for unpaid claims and claim adjustment expense $ 470,588 The average historical annual percentage payout of net incurred claims (excluding health) as of December 31, 2019 is as follows: Years 1 2 3 4 5 6 7 8 9 10 (Unaudited - Supplementary Information) Multiline 10.2 % 19.0 % 18.8 % 16.0 % 13.3 % 22.7 % — % — % — % — % General Liability 4.7 % 13.5 % 12.9 % 11.4 % 18.8 % 29.5 % 6.1 % 2.7 % 0.4 % — % Motor Casualty 45.7 % 33.1 % 8.8 % 5.1 % 3.5 % 1.8 % 1.3 % 0.7 % — % — % Motor Property 53.1 % 39.8 % 5.3 % 0.6 % 1.0 % 0.2 % — % — % — % — % Other 21.1 % 39.8 % 19.1 % 9.0 % 2.8 % 5.9 % 2.3 % — % — % — % Property 51.0 % 32.9 % 7.0 % 2.9 % 2.7 % 0.9 % 2.2 % 0.3 % 0.1 % — % Professional Liability 5.3 % 19.4 % 28.7 % 24.0 % 14.0 % 6.2 % 2.3 % 0.1 % — % — % Workers' Compensation 27.9 % 41.6 % 23.0 % 6.1 % 0.9 % 0.5 % — % — % — % — % The historical annual percentage payout pattern for health claims is excluded from the table above because health claims have short settlement periods and including it would skew the results presented. As a reinsurance entity, the Company generally does not receive detailed claims frequency information or claims counts from ceding insurers and third party claim handlers. Due to the nature of the reinsurance contracts, the underlying insured reports claims to the insurer who cedes losses to the Company. The Company is contractually obligated to reimburse the ceding insurer for its share of the losses. While the Company has the right to conduct audits of the ceding insurer’s claims files, the insurer is generally not obligated to provide detailed listing of claims counts or other claims frequency information to the Company. Therefore it is impracticable for the Company to present the cumulative number of reported claims by accident year. |
RETROCESSION
RETROCESSION | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
RETROCESSION | RETROCESSION The Company, from time to time, purchases retrocessional coverage for one or more of the following reasons: to manage its overall exposure, to reduce its net liability on individual risks, to obtain additional underwriting capacity and to balance its underwriting portfolio. Loss and loss adjustment expenses recoverable from retrocessionaires are recorded as assets. For the year ended December 31, 2019 , the Company’s earned ceded premiums were $72.8 million ( 2018 : $102.9 million and 2017 : $33.8 million ). For the year ended December 31, 2019 , loss and loss adjustment expenses incurred of $388.5 million ( 2018 : $363.9 million and 2017 : $502.4 million ) reported on the Company’s consolidated statements of operations are net of loss and loss expenses recovered and recoverable of $60.7 million ( 2018 : $71.0 million and 2017 : $31.8 million ). Retrocession contracts do not relieve the Company from its obligations to the insureds. Failure of retrocessionaires to honor their obligations could result in losses to the Company. At December 31, 2019 , the Company’s loss reserves recoverable consisted of (i) $21.2 million ( 2018 : $34.3 million ) from unrated retrocessionaires which were secured by cash, letters of credit and collateral held in trust accounts for the benefit of the Company and (ii) $6.4 million ( 2018 : $9.4 million ) from retrocessionaires rated A- or above by A.M. Best. The Company regularly evaluates the financial condition of its retrocessionaires to assess the ability of the retrocessionaires to honor their respective obligations. At December 31, 2019 and 2018 , no provision for uncollectible losses recoverable was considered appropriate. |
SENIOR CONVERTIBLE NOTES
SENIOR CONVERTIBLE NOTES | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
SENIOR CONVERTIBLE NOTES | SENIOR CONVERTIBLE NOTES On August 7, 2018, the Company issued $100.0 million of senior unsecured convertible notes (the “Notes”) which mature on August 1, 2023. The Notes bear interest at 4.0% payable semi-annually on February 1 and August 1 of each year beginning on February 1, 2019. Note holders have the option, under certain conditions, to redeem the Notes prior to maturity. If the Notes are converted by the holder, the Company shall have the option to settle the conversion obligation in cash, ordinary shares of the Company, or a combination thereof pursuant to the terms of the indenture governing the Notes. The Company has therefore bifurcated the Notes into liability and equity components. If converted at December 31, 2019 , the face value of the Notes would be cash settled and the Company has assumed that the conversion option will not be exercised due to the share price at December 31, 2019 being lower than the conversion price of $17.19 per share. The Company’s effective borrowing rate for non-convertible debt at the time of issuance of the Notes was estimated to be 6.0% , which equated to an $8.2 million discount. As of December 31, 2019 and December 31, 2018 , the unamortized debt discount was $5.9 million and $7.5 million respectively, and is expected to be amortized through the maturity date. The debt discount also represents the portion of the Note’s principal amount allocated to the equity component. The Company incurred issuance costs in connection with the issuance of the Notes. As of December 31, 2019 , the unamortized portion of these costs attributed to the debt component was $2.3 million ( December 31, 2018 : $2.9 million ), which are expected to be amortized through the maturity date. The portion of these issuance costs attributed to the equity component was netted against the gross proceeds allocated to equity, resulting in $7.9 million being included in the caption “Additional paid-in capital” in the Company’s consolidated balance sheets. The carrying value of the Notes as of December 31, 2019 , including accrued interest of $1.7 million was $93.5 million ( December 31, 2018 : $91.2 million ), which approximates their fair value. For the year ended December 31, 2019 , the Company recognized interest expense of $6.3 million ( December 31, 2018 : $2.5 million ), in connection with the interest coupon, amortization of issuance costs and amortization of the discount. The Company was in compliance with all covenants relating to the Notes as of December 31, 2019 and December 31, 2018 . |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
SHARE CAPITAL | SHARE CAPITAL The holders of all ordinary shares are entitled to share equally in dividends declared by the Board of Directors. In the event of a winding-up or dissolution of the Company, the ordinary shareholders share equally and ratably in the assets of the Company, after payment of all debts and liabilities of the Company and after the liquidation of any issued and outstanding preferred shares. The Board of Directors is authorized to establish the rights and restrictions for preferred shares as they deem appropriate. At December 31, 2019 , no preferred shares were issued or outstanding. The Third Amended and Restated Memorandum and Articles of Association as revised by special resolution on July 10, 2008 (the “Articles”), provide that the holders of Class A ordinary shares generally are entitled to one vote per share. However, except upon unanimous consent of the Board of Directors, no Class A shareholder is permitted to vote an amount of shares which would cause any United States person to own (directly, indirectly or constructively under applicable United States tax attribution and constructive ownership rules) 9.9% or more of the total voting power of all issued and outstanding ordinary shares. The Articles further provide that the holders of Class B ordinary shares generally are entitled to ten votes per share. However, holders of Class B ordinary shares, together with their affiliates, are limited to voting that number of Class B ordinary shares equal to 9.5% of the total voting power of the total issued and outstanding ordinary shares. Pursuant to the Shareholders’ Agreement, dated August 11, 2004, by and among the Company and certain of its shareholders (the “Shareholders’ Agreement”), the holders of at least 50% of the outstanding Registrable Securities (as defined in the Shareholders’ Agreement), may, subject to certain conditions, request to have all or part of their Registrable Securities to be registered. The Shareholders’ Agreement requires, among other things, that the Company use its commercially reasonable best efforts to have a registration statement covering such Registrable Securities to be declared effective. The registration rights granted pursuant to the Shareholders’ Agreement are not deemed to be liabilities; therefore, there has been no recognition in the Company’s consolidated financial statements of the registration rights granted pursuant to the Shareholders’ Agreement. As of December 31, 2019 , the Company has an effective Form S-3 registration statement, on file with the SEC, for an aggregate principal amount of $200.0 million in securities. Shares reserved for issuance are composed of 0.3 million ( 2018 : 0.3 million ) Class A ordinary shares in relation to share purchase options granted to a service provider and 5.0 million ( 2018 : 5.0 million ) Class A ordinary shares reserved for the Company’s stock incentive plan for eligible employees, directors and consultants. On April 26, 2017, the Company’s shareholders approved an amendment to the stock incentive plan to increase the number of Class A ordinary shares available for issuance by 1.5 million shares from 3.5 million to 5.0 million . As of December 31, 2019 and 2018 , there were no remaining Class A ordinary shares available for future issuance relating to share purchase options granted to the service provider as all options granted to service providers had been exercised. As of December 31, 2019 555,805 ( 2018 : 1,122,170 ) Class A ordinary shares remained available for future issuance under the Company’s stock incentive plan. The stock incentive plan is administered by the Compensation Committee of the Board of Directors. The Board has adopted a share repurchase plan. On May 2, 2019, the Board of Directors renewed the share repurchase plan, with effect from July 1, 2019 and expiring on June 30, 2020, authorizing the Company to purchase up to 2.5 million Class A ordinary shares or securities convertible into Class A ordinary shares in the open market, through privately negotiated transactions or Rule 10b5-1 stock trading plans. The timing of such repurchases and actual number of shares repurchased will depend on a variety of factors including price, market conditions and applicable regulatory and corporate requirements. The share repurchase plan, which expires on June 30, 2020 , does not require the Company to repurchase any specific number of shares and may be modified, suspended or terminated at any time without prior notice. During the year ended December 31, 2019 , no Class A ordinary shares were repurchased by the Company. As of December 31, 2019 , 2.5 million shares remained available for repurchase under the share repurchase plan. Under the Companies Law of the Cayman Islands, the Company cannot hold treasury shares; therefore, all ordinary shares repurchased are canceled immediately upon repurchase. The following table is a summary of voting ordinary shares issued and outstanding: 2019 2018 2017 Class A Class B Class A Class B Class A Class B Balance – beginning of year 30,130,214 6,254,715 31,104,830 6,254,715 31,111,432 6,254,895 Issue of ordinary shares, net of forfeitures 609,181 — 205,384 — 129,530 — Repurchase of ordinary shares — — (1,180,000 ) — (136,312 ) — Class B shares converted to Class A shares — — — — 180 (180 ) Balance – end of year 30,739,395 6,254,715 30,130,214 6,254,715 31,104,830 6,254,715 Additional paid-in capital includes the premium per share paid by the subscribing shareholders for Class A and B ordinary shares which have a par value of $0.10 each. It also includes share-based awards earned not yet issued. Statutory Capital and Surplus Greenlight Re is subject to the Cayman Islands’ Insurance (Capital and Solvency) (Classes B, C, and D Insurers) Regulations, (2018 Revision) (the “Insurance Regulations”). The Insurance Regulations impose a Minimum Capital Requirement (“MCR”) of $50.0 million and a Prescribed Capital Requirement (“PCR”) on Greenlight Re which was $200.9 million as of December 31, 2019 ( 2018 : $191.9 million ). As of December 31, 2019 , Greenlight Re’s statutory capital and surplus of $519.9 million exceeded the MCR as well as the PCR. For the years ended December 31, 2019, 2018 and 2017 , Greenlight Re’s net income (loss) was $9.2 million , $(330.3) million , and $(38.2) million , respectively. Greenlight Re is not required to prepare separate statutory financial statements for filing with CIMA and there were no material differences between Greenlight Re’s GAAP capital, surplus and net income, and its statutory capital, surplus and net income as of December 31, 2019 and 2018 . As of December 31, 2019 , the Company was not restricted from payment of dividends to the Company’s shareholders. However, since most of the Company’s capital and retained earnings are invested in its subsidiaries, a dividend from one or more of the Company’s subsidiaries would likely be required in order to fund a dividend to the Company’s shareholders. Any dividends declared and paid from Greenlight Re to the Company would require approval of CIMA. During the year ended December 31, 2019 , no dividends ( 2018 : $0.0 million , 2017 : $33.0 million ) were declared or paid by Greenlight Re to the Company. As of December 31, 2019 and 2018 , $319.0 million and $322.8 million , respectively, of Greenlight Re’s capital and surplus was available for distribution as dividends. GRIL is obligated to maintain a minimum level of statutory capital. As of December 31, 2019 and 2018 , GRIL met such requirements. As of December 31, 2019 and 2018 , GRIL’s statutory capital was $35.6 million and $36.6 million , respectively. As of December 31, 2019 , GRIL’s statutory minimum capital required under Solvency II was approximately $5.4 million ( 2018 : $5.9 million ). GRIL’s statutory net income (loss) was $0.8 million , $(15.4) million and $(3.7) million for the years ended December 31, 2019, 2018 and 2017 , respectively. The amount of dividends that GRIL is permitted to distribute is limited to its retained earnings and the Central Bank of Ireland has powers to intervene if a dividend payment were to lead to a breach of regulatory capital requirements. As of December 31, 2019 and 2018 , none of GRIL’s capital and surplus was available for distribution as dividends. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The Company has a stock incentive plan for directors, employees and consultants that is administered by the Compensation Committee of the Board of Directors. Employee and Director Restricted Shares For the year ended December 31, 2019 , 235,701 ( 2018 : 160,595 , 2017 : 125,371 ) Class A ordinary shares were issued to employees pursuant to the Company’s stock incentive plan. The majority of these shares contain certain restrictions relating to, among other things, vesting, forfeiture in the event of termination of employment and transferability. The restricted shares cliff vest three years after the date of issuance, subject to the grantee’s continued service with the Company. During the vesting period, the holder of the restricted shares retains voting rights and is entitled to any dividends declared by the Company. For the year ended December 31, 2019 , 326,240 ( 2018 : 30,660 , 2017 : nil ) Class A ordinary shares were issued to the Company’s Chief Executive Officer (“CEO”) pursuant to the Company’s stock incentive plan. These shares contain performance and service conditions and certain restrictions relating to, among other things, vesting, forfeiture in the event of termination of employment and transferability. 89,945 of these restricted shares cliff vest 5 years after the date of issuance, subject to the performance condition being met and the grantee’s continued service with the Company while the remainder of these restricted shares vest upon occurrence of a specified performance condition being met prior to December 15, 2020. During the vesting period, the holder of the restricted shares retains voting rights and is entitled to any dividends declared by the Company. The weighted average grant date fair value of the restricted shares subject to performance conditions was $10.65 ( 2018 : $15.90 ) per share. No compensation cost was recognized relating to these shares for the year ended December 31, 2019 ( 2018 : nil ) based on the performance conditions remaining. For the year ended December 31, 2019 , the Company also issued to non-employee directors an aggregate of 77,556 ( 2018 : 54,720 , 2017 : 41,396 ) restricted Class A ordinary shares as part of their remuneration for services to the Company. Each of these restricted shares issued to non-employee directors contains similar restrictions to those issued to employees and will vest on the earlier of the first anniversary of the date of the share issuance or the Company’s next annual general meeting, subject to the grantee’s continued service with the Company. For the year ended December 31, 2019 , 37,502 ( 2018 : 44,644 , 2017 : 46,943 ) restricted shares were forfeited by employees and a director who left the Company prior to the expiration of the applicable vesting periods. For the year ended December 31, 2019 , $0.2 million stock compensation expense ( 2018 : $0.3 million , 2017 : $0.0 million ) relating to the forfeited restricted shares was reversed. The Company recorded $2.8 million of share-based compensation expense, net of forfeiture reversals, relating to restricted shares for the year ended December 31, 2019 ( 2018 : $2.9 million , 2017 : $3.3 million ). As of December 31, 2019 , there was $2.7 million ( 2018 : $2.6 million , 2017 : $3.5 million ) of unrecognized compensation cost relating to non-vested restricted shares (excluding CEO’s restricted shares with performance conditions) which are expected to be recognized over a weighted average period of 1.6 years ( 2018 : 1.6 years , 2017 : 1.6 years ). For the year ended December 31, 2019 , the total fair value of restricted shares vested was $3.1 million ( 2018 : $2.8 million , 2017 : $4.5 million ). The following table summarizes the activity for unvested outstanding restricted share awards during the years ended December 31, 2019 and 2018 : Number of Weighted Balance at December 31, 2017 331,510 $ 23.45 Granted 245,975 15.78 Vested (100,384 ) 27.74 Forfeited (44,644 ) 18.77 Balance at December 31, 2018 432,457 18.58 Granted 639,497 10.69 Vested (161,365 ) 19.44 Forfeited (37,502 ) 14.12 Balance at December 31, 2019 873,087 $ 12.83 Employee and Director Stock Options For the year ended December 31, 2019 and 2018 , no Class A ordinary share purchase options were granted ( 2017 : 480,000 ). The Class A ordinary share purchase options granted to the Company’s CEO in 2017 vest 16.7% each on the anniversary thereof in 2018, 2019, 2020, 2021, 2022 and 2023, and expire 10 years after the grant date. The grant date fair value of these options was $9.60 , based on the Black-Scholes option pricing model. In addition, for the year ended December 31, 2017, 42,250 Class A ordinary share purchase options were granted to the Company’s former interim Chief Executive Officer, pursuant to his consulting agreement. These options vested 100% on their grant date and expire 10 years after the grant date. The weighted average grant date fair value of these options was $9.90 per share based on the Black-Scholes option pricing model. For the options granted in 2017, the Company applied the following weighted average assumptions to the options pricing model: 2017 Risk free rate 2.32 % Estimated volatility 31.4 % Expected term (in years) 10 Dividend yield — % Forfeiture rate — % The estimate of expected volatility for options granted during 2017 was based on the daily historical trading data of the Company’s Class A ordinary shares from the date that these shares commenced trading on May 24, 2007 to the grant date. The Board of Directors does not currently anticipate that any dividends will be declared during the expected term of the options. The Company uses graded vesting for expensing employee stock options. The total compensation cost expensed for the year ended December 31, 2019 was $0.9 million ( 2018 : $1.5 million , 2017 : $1.3 million ). At December 31, 2019 , the total compensation cost related to non-vested options not yet recognized was $1.3 million ( 2018 : $2.2 million ) to be recognized over a weighted average period of 2.4 years ( 2018 : 2.9 years) assuming the grantee completes the service period for vesting of the options. For the year ended December 31, 2019 , no stock options were exercised by directors and employees ( 2018 : 0 , 2017 : 50,000 ) resulting in no Class A ordinary shares being issued ( 2018 : 0 , 2017 : 5,011 , net of shares surrendered as a result of the cashless exercise of stock options). When stock options are granted, the Company reduces the corresponding number from the shares authorized for issuance as part of the Company’s stock incentive plan. Employee and director stock option activity during the years ended December 31, 2019, 2018 and 2017 was as follows: Number of options outstanding Weighted average exercise price Weighted average grant date fair value Intrinsic value ($ in millions) Weighted average remaining contractual term Balance at December 31, 2016 543,377 $ 25.40 $ 10.17 $ 0.5 4.7 years Granted 522,250 21.25 9.63 Exercised (50,000 ) 19.60 10.18 0.1 Balance at December 31, 2017 1,015,627 23.55 9.89 — 6.9 years Expired (80,000 ) 29.39 8.69 Balance at December 31, 2018 935,627 23.05 10.00 — 6.4 years Expired (60,000 ) 28.44 6.25 Balance at December 31, 2019 875,627 $ 22.68 $ 10.25 $ — 5.8 years The following table summarizes information about options exercisable for the periods indicated: December 31, 2019 December 31, 2018 December 31, 2017 Number of options exercisable 555,627 535,627 535,627 Weighted average exercise price $ 23.54 $ 24.43 $ 25.66 Weighted average remaining contractual term 4.9 4.9 4.6 Intrinsic value ($ in millions) $ — $ — $ — During the year ended December 31, 2019 , 80,000 ( 2018 : 80,000 , 2017 : 113,585 ) options vested which had a weighted average grant date fair value of $9.60 ( 2018 : $9.60 , 2017 : $10.29 ). Employee Restricted Stock Units The Company issues restricted stock units (“RSUs”) to certain employees as part of the stock incentive plan. These RSUs contain restrictions relating to vesting, forfeiture in the event of termination of employment, transferability and other matters. Each RSU grant cliff vests three years after the date of issuance, subject to the grantee’s continued service with the Company. On the vesting date, the Company converts each RSU into one Class A ordinary share and issues new Class A ordinary shares from the shares authorized for issuance as part of the Company’s stock incentive plan. For the year ended December 31, 2019 , 48,535 ( 2018 : 28,301 , 2017 : 11,559 ) RSUs were issued to employees pursuant to the Company’s stock incentive plan. For the year ended December 31, 2019 , 24,165 ( 2018 : 648 ) RSUs were forfeited by employees who left the Company prior to the expiration of the applicable vesting periods. The Company recorded $0.2 million of share-based compensation expense, net of forfeitures, relating to RSUs for the year ended December 31, 2019 ( 2018 : $0.2 million , 2017 : $0.2 million ). At December 31, 2019 , the total compensation cost related to non-vested RSUs not yet recognized was $0.4 million ( 2018 : $0.4 million ) to be recognized over a weighted average period of 1.8 years ( 2018 : 1.9 years) assuming the grantee completes the service period for vesting of the options. Employee RSU activity during the years ended December 31, 2019 and 2018 was as follows: Number of Weighted Balance at December 31, 2017 22,798 $ 23.50 Granted 28,301 15.90 Vested (4,053 ) 32.21 Forfeited (648 ) 21.65 Balance at December 31, 2018 46,398 18.13 Granted 48,535 10.84 Vested (7,186 ) 21.56 Forfeited (24,165 ) 13.96 Balance at December 31, 2019 63,582 $ 13.76 For the years ended December 31, 2019, 2018 and 2017 , the combined stock compensation expense (net of forfeitures), which was included in the caption “General and administrative expenses” in the Company’s statements of operations, was $3.9 million , $4.6 million and $4.9 million , respectively. |
NET INVESTMENT INCOME (LOSS)
NET INVESTMENT INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2019 | |
Net Investment Income [Abstract] | |
NET INVESTMENT INCOME (LOSS) | NET INVESTMENT INCOME (LOSS) A summary of net investment income (loss) for the years ended December 31, 2019, 2018 and 2017 is as follows: 2019 2018 2017 ($ in thousands) Realized gains (losses) $ (14,150 ) $ (236,887 ) $ 87,618 Change in unrealized gains and losses 8,380 (32,597 ) (41,444 ) Investment related foreign exchange gains (losses) 20 938 (7,653 ) Interest and dividend income, net of withholding taxes 16,059 35,468 25,510 Interest, dividend and other expenses (4,798 ) (17,987 ) (23,937 ) Income (loss) from equity method investment 700 (247 ) — Investment advisor compensation on joint venture — (11,221 ) (19,863 ) Net investment related income (loss) 6,211 (262,533 ) 20,231 Income (loss) from investments in related party investment fund 46,056 (60,573 ) — Total net investment related income (loss) $ 52,267 $ (323,106 ) $ 20,231 Income (loss) from investments in related party investment fund reflects the equity in earnings (loss) of SILP (see Note 3 ). Investment returns are calculated monthly based on cash flows into or out of the investment accounts and compounded to calculate the annual returns generated by the Company’s investments managed by DME Advisors. Effective from September 1, 2018, the investment return is calculated by dividing the investment income or loss (net of fees and expenses) by the Investment Portfolio. For the year ended December 31, 2019 , the total investment related income includes a gain of 9.3% on the investments managed by DME Advisors. This return compares to a loss of 30.3% and a gain of 1.5% reported for the years ended December 31, 2018 and 2017 , respectively. The change in unrealized gains and losses for year ended December 31, 2019 , included a net increase in the valuation allowance provision of $6.0 million ( 2018 : $ nil , 2017 : $ nil ) relating to notes receivable. |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
TAXATION | TAXATION Each of the Company and Greenlight Re intends to conduct all of its operations in a manner that will not cause it to be treated as engaging in a trade or business within the United States and will not cause it to be subject to current U.S. federal income taxation on its net income. However, because there are no definitive standards provided by the Internal Revenue Code, regulations or court decisions as to the specific activities that constitute being engaged in the conduct of a trade or business within the United States, and as any such determination is essentially factual in nature, there can be no assurance that the IRS will not successfully assert that the Company or Greenlight Re is engaged in a trade or business within the U.S. As of December 31, 2019 , a gross deferred tax asset of $3.6 million ( 2018 : $3.6 million ) and a deferred tax asset valuation allowance of $2.6 million ( 2018 : $2.2 million ) was recorded by the Company. The net deferred tax asset is included in the caption “Other assets” in the Company’s consolidated balance sheets. Based on the timing of the reversal of the temporary differences and likelihood of generating sufficient taxable income to realize the future tax benefit, management believes it is more likely than not that the recorded deferred tax asset (net of the valuation allowance) will be fully realized in the future. The Company currently believes that it has no uncertain tax positions which, if challenged, would cause a material change to the Company’s consolidated financial statements. At December 31, 2019 , GRIL had a net operating loss carry forward of $28.2 million ( 2018 : $28.6 million ) which can be carried forward indefinitely. At December 31, 2019 and 2018 , no taxes recoverable were included in the Company’s consolidated balance sheets. At December 31, 2019 , Verdant had a net operating loss carry forward totaling $4.6 million available to offset future taxable income. Of the total $4.6 million , $2.9 million expire at various dates from 2033 to 2037 and the remaining $1.7 million have no expiration date. The deferred tax asset associated with the net operating loss carried forward, has been offset by a valuation allowance as management does not anticipate that the carried forward amount will be realized. The following table sets forth our current and deferred income tax benefit (expense) on a consolidated basis for the years ended December 31, 2019, 2018 and 2017 : 2019 2018 2017 ($ in thousands) Current tax (expense) benefit $ (43 ) $ 1,840 $ 465 Deferred tax (expense) benefit (8 ) (4 ) (14 ) Increase in deferred tax valuation allowance (432 ) (2,168 ) — Income tax (expense) benefit $ (483 ) $ (332 ) $ 451 Federal Excise Taxes The United States imposes an excise tax on reinsurance premiums paid to non-U.S. insurers or reinsurers with respect to risks located in the United States. The rate of tax, unless exempted or reduced by an applicable U.S. tax treaty, is 1.0% for all reinsurance premiums. The Company incurs federal excise taxes on certain of its reinsurance transactions, including amounts ceded through intercompany transactions. For the years ended 2019 , 2018 and 2017 , the Company incurred approximately $3.8 million , $3.6 million and $5.0 million , respectively, of federal excise taxes, net of any refunds received. These amounts are included in the caption “Acquisition costs” in the Company’s consolidated statements of operations. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Investment Advisory Agreement DME, DME II and DME Advisors are related to the Company and each is an affiliate of David Einhorn, Chairman of the Company’s Board of Directors. Prior to September 1, 2018, the Company and its reinsurance subsidiaries were party to the venture agreement with DME Advisors under which the Company, its reinsurance subsidiaries and DME were participants of the Joint Venture for the purpose of managing certain jointly held assets. In addition, prior to September 1, 2018, the Company, its reinsurance subsidiaries and DME had entered into a separate investment advisory agreement with DME Advisors (the “advisory agreement”). On September 1, 2018, the Company, DME and DME Advisors entered into a termination agreement to terminate the Joint Venture and the advisory agreement on January 2, 2019. On September 1, 2018, the Company entered into the SILP LPA with DME II, as General Partner. DME II receives a performance allocation equal to (with capitalized terms having the meaning provided under the SILP LPA) (a) 10% of the portion of the Positive Performance Change for each limited partner’s capital account that is less than or equal to the positive balance in such limited partner’s Carryforward Account, plus (b) 20% of the portion of the Positive Performance Change for each limited partner’s capital account that exceeds the positive balance in such limited partner’s Carryforward Account. The Carryforward Account for Greenlight Re and GRIL include the amount of losses that were to be recouped under the Joint Venture as well as any loss generated on the assets invested in SILP, subject to adjustments for redemptions. The loss carry forward provision contained in the SILP LPA allows DME II to earn a reduced performance allocation of 10% of profits in years subsequent to any year in which SILP has incurred a loss, until all losses are recouped and an additional amount equal to 150% of the loss is earned. For the year ended December 31, 2019 , performance allocation of $5.0 million , ( 2018 : nil ) was deducted from the Company’s investment in SILP and allocated to DME II. In accordance with the SILP LPA, DME Advisors constructs a levered investment portfolio as agreed by the Company (the “Investment Portfolio” as defined in the SILP LPA). On September 1, 2018, SILP entered into the IAA with DME Advisors which entitles DME Advisors to a monthly management fee equal to 0.125% ( 1.5% on an annual basis) of each limited partner’s Investment Portfolio. The IAA has an initial term ending on August 31, 2023 subject to an automatic extension for successive three -year terms. For the year ended December 31, 2019 , management fees paid by SILP to DME Advisors of $4.9 million , ( 2018 : $3.1 million ) were included in the caption “Income (loss) from investment in related party investment fund” in the Company’s consolidated statement of operations. The Company has entered into a letter agreement with DME Advisors and DME II whereby during the period from June 1, 2019 to June 30, 2020, the portion of the Investment Portfolio held in cash or cash equivalents will not be subject to any management fee or performance allocation. Pursuant to the SILP LPA and the IAA, the Company has agreed to indemnify DME, DME II and DME Advisors for any expense, loss, liability, or damage arising out of any claim asserted or threatened in connection with DME Advisors serving as the Company’s or SILP’s investment advisor. The Company will reimburse DME, DME II and DME Advisors for reasonable costs and expenses of investigating and/or defending such claims, provided such claims were not caused due to gross negligence, breach of contract or misrepresentation by DME, DME II or DME Advisors. There were no indemnification amounts incurred by the Company during any of the periods presented. Non-controlling Interest in Related Party Joint Venture Non-controlling interests in related party joint venture represented DME’s share of the jointly held assets under the venture agreement. A portion of the non-controlling interest was subject to contractual withdrawal rights whereby DME, at its sole discretion, could withdraw its interest above the minimum capital required to be maintained in its capital accounts. This interest was recorded on the Company’s consolidated balance sheets under the caption “Redeemable non-controlling interest in related party joint venture.” The remaining portion without any withdrawal rights associated with it, was recorded under the caption “Non-controlling interest in related party joint venture” within the equity section on the Company’s consolidated balance sheet. The following table is a reconciliation of the beginning and ending carrying amounts of redeemable non-controlling interest in related party, non-controlling interest in related party and total non-controlling interest in related party for the years ended December 31, 2019, 2018 and 2017 : Redeemable non-controlling interest in related party joint venture Non-controlling interest in related party joint venture Total non-controlling interest in related party joint venture Year ended December 31 Year ended December 31 Year ended December 31 2019 2018 2017 2019 2018 2017 2019 2018 2017 Opening balance $ 1,692 $ 7,169 $ 5,884 — $ 485 $ 12,933 $ 11,561 — $ 2,177 $ 20,102 $ 17,445 Income (loss) attributed to non-controlling interest — (2,680 ) 201 — — (1,595 ) 378 — — (4,275 ) 579 Net contribution into (withdrawal from) non-controlling interest (1,692 ) (2,797 ) 1,084 — (485 ) (10,853 ) 994 — (2,177 ) (13,650 ) 2,078 Ending balance $ — $ 1,692 $ 7,169 $ — $ 485 $ 12,933 $ — $ 2,177 $ 20,102 Green Brick Partners, Inc. David Einhorn also serves as the Chairman of the Board of Directors of Green Brick Partners, Inc. (“GRBK”), a publicly traded company. As of December 31, 2019 , SILP, along with certain affiliates of DME Advisors, collectively owned 47.8% of the issued and outstanding common shares of GRBK. Under applicable securities laws, DME Advisors may be limited at times in its ability to trade GRBK shares on behalf of SILP. Service Agreement The Company has entered into a service agreement with DME Advisors, pursuant to which DME Advisors provides certain investor relations services to the Company for compensation of five thousand dollars per month (plus expenses). The agreement is automatically renewed annually until terminated by either the Company or DME Advisors for any reason with 30 days prior written notice to the other party. Collateral Assets Investment Management Agreement Effective January 1, 2019, the Company (and its subsidiaries) entered into a collateral assets investment management agreement (the “CMA”) with DME Advisors, pursuant to which DME Advisors manages certain assets of the Company that are not subject to the SILP LPA and are held by the Company to provide collateral required by the cedents in the form of trust accounts and letters of credit. In accordance with the CMA, DME Advisors receives no fees and is required to comply with the collateral investment guidelines. The CMA can be terminated by any of the parties upon 30 days’ prior written notice to the other parties. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Letters of Credit and Trusts At December 31, 2019 , the Company had one letter of credit facility, which automatically renews each year unless terminated by either party in accordance with the applicable required notice period: Facility Termination Date Notice period required for termination ($ in thousands) Citibank Europe plc 400,000 October 11, 2020 120 days prior to termination date During 2019 the Butterfield Bank letter of credit facility was terminated. As of December 31, 2019 , an aggregate amount of $204.5 million ( 2018 : $208.3 million ) in letters of credit were issued under the above facility. As of December 31, 2019 , total cash and cash equivalents with a fair value in the aggregate of $213.4 million ( 2018 : $221.7 million ) were pledged as collateral against the letters of credit issued and included in the caption “Restricted cash and cash equivalents” in the Company’s consolidated balance sheets. The facility contains customary events of default and restrictive covenants, including but not limited to, limitations on liens on collateral, transactions with affiliates, mergers and sales of assets, as well as solvency and maintenance of certain minimum pledged equity requirements, and restricts issuance of any debt without the consent of the letter of credit provider. Additionally, if an event of default exists, as defined in the letter of credit facility, Greenlight Re will be prohibited from paying dividends to its parent company. The Company was in compliance with all the covenants of the facility as of December 31, 2019 and 2018 . The Company has also established regulatory trust arrangements for certain cedents. As of December 31, 2019 , collateral of $528.7 million ( 2018 : $463.4 million ) was provided to cedents in the form of regulatory trust accounts and included in the caption “Restricted cash and cash equivalents” in the Company’s consolidated balance sheets. Lease Obligations Greenlight Re has entered into lease agreements for office space in the Cayman Islands. The leases expired on June 30, 2018. The Company is currently in negotiations with the lessor for renewal of the leases and meanwhile both parties have agreed to extend the leases until December 31, 2020. The Company has determined that the current arrangement qualifies as a short term lease upon adoption of Leases (Topic 842) on January 1, 2019. The short-term lease expense for the year ended December 31, 2019 was $0.5 million . GRIL has entered into a lease agreement for office space in Dublin, Ireland. Under the terms of this lease agreement, GRIL is committed to minimum annual rent payments denominated in Euros approximating €0.1 million until May 2021, and adjusted to the prevailing market rates for the subsequent five -year term. GRIL has the option to terminate the lease agreement in 2021. The Company has determined that this lease was an operating lease on January 1, 2019 and has recorded a right-of-use asset and a corresponding lease liability of $0.3 million . The operating lease expense for the year ended December 31, 2019 and 2018 was insignificant. Included in the “Schedule of Commitments and Contingencies,” below, are the net minimum lease payment obligations relating to this lease as of December 31, 2019 . Loan Facility From time to time, the Company makes investments in the form of equity or debt in private entities as part of its strategic investments and innovation initiatives. As part of the Company’s participation in such investments, the Company may make funding commitments. As of December 31, 2019 , the Company had committed to a loan facility (the “Loan Facility”) of $6.0 million to AccuRisk (see Note 4 ). As of December 31, 2019 , $0.4 million of the Loan Facility was available to AccuRisk. Included in the schedule below is the obligation relating to the Loan Facility as of December 31, 2019 on the assumption that the entire Loan Facility will be drawn by AccuRisk during 2020. Advisory fee The Company has entered into an advisory agreement whereby the Company is obligated to pay a minimum of $2.0 million , no earlier than March 2020. Pursuant to the advisory agreement, additional fees may be payable depending on certain events occurring. Included in the schedule below is the minimum obligation relating to the advisory agreement as of December 31, 2019 . Schedule of Commitments and Contingencies The following is a schedule of future minimum payments required under the above commitments: 2020 2021 2022 2023 2024 Thereafter Total ($ in thousands) Operating lease obligations $ 679 $ 62 $ 62 $ — $ — $ — $ 803 Interest and convertible note payable 4,000 4,000 4,000 104,000 — — 116,000 Loan facility 350 — — — — — 350 Advisory fee 2,000 — — — — — 2,000 $ 7,029 $ 4,062 $ 4,062 $ 104,000 $ — $ — $ 119,153 Litigation From time to time in the normal course of business, the Company may be involved in formal and informal dispute resolution procedures, which may include arbitration or litigation, the outcomes of which determine the rights and obligations under the Company’s reinsurance contracts and other contractual agreements. In some disputes, the Company may seek to enforce its rights under an agreement or to collect funds owing to it. In other matters, the Company may resist attempts by others to collect funds or enforce alleged rights. While the final outcome of legal disputes cannot be predicted with certainty, the Company does not believe that any existing dispute, when finally resolved, will have a material adverse effect on the Company’s business, financial condition or operating results. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company manages its business on the basis of one operating segment, Property & Casualty Reinsurance. Substantially all of the business is sourced through reinsurance brokers. The following table sets forth the premiums generated through our largest brokers and their subsidiaries and affiliates: Year ended December 31 2019 2018 2017 ($ in thousands) Guy Carpenter (Marsh) $ 297,150 56.7 % $ 376,696 66.4 % $ 366,390 52.9 % Trean Re 85,323 16.3 45,446 8.0 54,799 7.9 Aon Benfield 41,071 7.8 70,554 12.4 125,320 18.1 Total of largest brokers $ 423,544 80.8 % $ 492,696 86.8 % $ 546,509 78.9 % All others 100,433 19.2 74,835 13.2 146,142 21.1 Total $ 523,977 100.0 % $ 567,531 100.0 % $ 692,651 100.0 % The following tables provide a breakdown of the Company’s gross premiums written by line and class of business, and by geographic area of risks insured for the periods indicated: Gross Premiums Written by Line of Business Year ended December 31 2019 2018 2017 ($ in thousands) Property Commercial $ 14,165 2.7 % $ 10,487 1.8 % $ 12,256 1.8 % Motor 59,402 11.3 76,425 13.5 71,188 10.2 Personal 12,390 2.4 14,118 2.5 49,491 7.2 Total Property 85,957 16.4 101,030 17.8 132,935 19.2 Casualty General Liability 2,401 0.5 1,429 0.3 4,753 0.7 Motor Liability 233,591 44.6 291,690 51.4 281,551 40.6 Professional Liability (1) (448 ) (0.1 ) 3,068 0.5 8,703 1.3 Workers' Compensation 50,369 9.6 24,101 4.3 24,803 3.6 Multi-line 76,461 14.6 57,497 10.1 123,340 17.8 Total Casualty 362,374 69.2 377,785 66.6 443,150 64.0 Other Accident & Health 39,175 7.5 69,605 12.2 66,800 9.6 Financial 23,087 4.4 16,611 2.9 48,380 7.0 Marine 160 — 394 0.1 — — Other Specialty 13,224 2.5 2,106 0.4 1,386 0.2 Total Other 75,646 14.4 88,716 15.6 116,566 16.8 $ 523,977 100.0 % $ 567,531 100.0 % $ 692,651 100.0 % (1) The negative balance represents the reversal of premiums due to premium adjustments, termination of contracts or premium returned upon novation or commutation of contracts. Gross Premiums Written by Geographic Area of Risks Insured Year ended December 31 2019 2018 2017 ($ in thousands) U.S. and Caribbean $ 435,458 83.1 % $ 507,705 89.5 % $ 606,510 87.6 % Worldwide (1) 84,728 16.2 59,366 10.5 86,714 12.5 Europe (2) (13 ) — 506 — (612 ) (0.1 ) Asia (2) 3,804 0.7 (46 ) — 39 — $ 523,977 100.0 % $ 567,531 100.0 % $ 692,651 100.0 % (1) “Worldwide” is composed of contracts that reinsure risks in more than one geographic area and may include risks in the U.S. (2) The negative balances represent the reversal of premiums due to premium adjustments, termination of contracts or premium returned upon novation or commutation of contracts. |
QUARTERLY FINANCIAL RESULTS (UN
QUARTERLY FINANCIAL RESULTS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL RESULTS (UNAUDITED) | QUARTERLY FINANCIAL RESULTS (UNAUDITED) The following table presents the quarterly financial results for each of the quarters ended during 2019 : 2019 Quarter ended ($ in thousands, except per share amounts) Revenues Gross premiums written $ 162,560 $ 152,340 $ 110,607 $ 98,470 Gross premiums ceded (21,401 ) (23,141 ) (4,035 ) (90 ) Net premiums written 141,159 129,199 106,572 98,380 Change in net unearned premium reserves (15,797 ) (8,758 ) 22,582 10,243 Net premiums earned 125,362 120,441 129,154 108,623 Income (loss) from investment in related party investment fund 30,756 14,405 6,609 (5,714 ) Net investment income (loss) 1,567 4,386 3,312 (3,054 ) Other income (expense), net 1,069 1,117 (887 ) 1,007 Total revenues 158,754 140,349 138,188 100,862 Expenses Net loss and loss adjustment expenses incurred 122,865 78,476 92,962 94,184 Acquisition costs 21,526 37,172 30,962 27,424 General and administrative expenses 6,840 7,919 7,725 7,338 Interest expense 1,544 1,562 1,578 1,579 Total expenses 152,775 125,129 133,227 130,525 Income (loss) before income tax expense 5,979 15,220 4,961 (29,663 ) Income tax (expense) benefit (73 ) 94 179 (683 ) Net income (loss) attributable to Greenlight Capital Re, Ltd. $ 5,906 $ 15,314 $ 5,140 $ (30,346 ) Earnings (loss) per share Basic $ 0.16 $ 0.42 $ 0.14 $ (0.84 ) Diluted $ 0.16 $ 0.42 $ 0.14 $ (0.84 ) Weighted average number of ordinary shares used in the determination of earnings and loss per share Basic 35,972,665 36,100,665 36,841,623 36,121,023 Diluted 36,364,358 36,829,963 36,921,490 36,121,023 The following table presents the quarterly financial results for each of the quarters ended during 2018 : 2018 Quarter ended ($ in thousands) Revenues Gross premiums written $ 175,125 $ 142,109 $ 115,154 $ 135,143 Gross premiums ceded (29,843 ) (27,237 ) (15,456 ) (30,252 ) Net premiums written 145,282 114,872 99,698 104,891 Change in net unearned premium reserves 562 13,944 14,406 14,708 Net premiums earned 145,844 128,816 114,104 119,599 Income (loss) from investment in related party investment fund — — (10,025 ) (50,548 ) Net investment income (loss) (145,216 ) (40,656 ) (70,851 ) (5,810 ) Other income (expense), net (487 ) (76 ) (683 ) (982 ) Total revenues 141 88,084 32,545 62,259 Expenses Net loss and loss adjustment expenses incurred 95,824 84,815 86,780 96,454 Acquisition costs 44,209 34,623 28,331 38,312 General and administrative expenses 5,956 6,958 7,136 5,123 Interest expense — — 927 1,578 Total expenses 145,989 126,396 123,174 141,467 Income (loss) before income tax (145,848 ) (38,312 ) (90,629 ) (79,208 ) Income tax (expense) benefit 770 323 355 (1,780 ) Net income (loss) (145,078 ) (37,989 ) (90,274 ) (80,988 ) Loss (income) attributable to non-controlling interest in related party joint venture 2,326 621 1,159 169 Net income (loss) attributable to Greenlight Capital Re, Ltd. $ (142,752 ) $ (37,368 ) $ (89,115 ) $ (80,819 ) Earnings (loss) per share Basic $ (3.85 ) $ (1.01 ) $ (2.48 ) $ (2.25 ) Diluted $ (3.85 ) $ (1.01 ) $ (2.48 ) $ (2.25 ) Weighted average number of ordinary shares used in the determination of earnings and loss per share Basic 37,087,169 36,952,472 35,952,472 35,952,472 Diluted 37,087,169 36,952,472 35,952,472 35,952,472 |
SCHEDULE I SUMMARY OF INVESTMEN
SCHEDULE I SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | SCHEDULE I GREENLIGHT CAPITAL RE, LTD. SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN RELATED PARTIES AS OF DECEMBER 31, 2019 (expressed in thousands of U.S. dollars) Type of Investment Cost Fair Value Balance ($ in thousands) Other investments Private investments and unlisted equities $ 10,420 $ 10,681 $ 10,681 Investment accounted for under the equity method NA 5,703 5,703 Total other investments 10,420 16,384 16,384 Total investments $ 10,420 $ 16,384 $ 16,384 |
SCHEDULE II CONDENSED FINANCIAL
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | SCHEDULE II GREENLIGHT CAPITAL RE, LTD. CONDENSED FINANCIAL INFORMATION OF REGISTRANT CONDENSED BALANCE SHEETS — PARENT COMPANY ONLY (expressed in thousands of U.S. dollars) December 31, 2019 December 31, 2018 ($ in thousands) Assets Other investments $ 1,000 $ 800 Cash and cash equivalents 2 3 Investment in subsidiaries 557,835 553,323 Notes receivable (net of valuation allowance) 10,469 21,965 Due from subsidiaries 8,200 — Total assets $ 577,506 $ 576,091 Liabilities and equity Liabilities Convertible senior notes payable $ 93,514 $ 91,185 Other liabilities 1,611 — Due to subsidiaries 5,198 7,619 Total liabilities 100,323 98,804 Shareholders’ equity Share capital 3,699 3,638 Additional paid-in capital 503,547 499,726 Retained earnings (deficit) (30,063 ) (26,077 ) Total shareholders’ equity 477,183 477,287 Total liabilities and equity $ 577,506 $ 576,091 GREENLIGHT CAPITAL RE, LTD. CONDENSED FINANCIAL INFORMATION OF REGISTRANT CONDENSED STATEMENT OF OPERATIONS — PARENT COMPANY ONLY (expressed in thousands of U.S. dollars) Year ended December 31 2019 2018 2017 ($ in thousands) Revenue Net investment income $ 522 $ 1,574 $ 34,487 Total revenues 522 1,574 34,487 Expenses General and administrative expenses 6,496 4,445 4,691 Interest expense 6,263 2,505 — Total expenses 12,759 6,950 4,691 Net income (loss) before equity in earnings of consolidated subsidiaries (12,237 ) (5,376 ) 29,796 Equity in earnings of consolidated subsidiaries 8,251 (344,678 ) (74,748 ) Consolidated net income (loss) $ (3,986 ) $ (350,054 ) $ (44,952 ) SCHEDULE II (continued) GREENLIGHT CAPITAL RE, LTD. CONDENSED FINANCIAL INFORMATION OF REGISTRANT CONDENSED STATEMENTS OF CASH FLOWS — PARENT COMPANY ONLY (expressed in thousands of U.S. dollars) Year Ended December 31 2019 2018 2017 ($ in thousands) Cash provided by (used in) operating activities Net income (loss) (3,986 ) (350,054 ) (44,952 ) Adjustments to reconcile net income or loss to net cash provided by (used in) operating activities Equity in earnings of consolidated subsidiaries (8,251 ) 344,678 74,748 Net change in unrealized gains and losses on investments (200 ) — — Share-based compensation expense 3,686 4,382 4,691 Amortization and interest expense 2,329 2,505 — Net change in Due from subsidiaries (8,200 ) 876 (876 ) Other liabilities 1,611 — — Due from subsidiaries (2,421 ) 7,619 (29,023 ) Net cash provided by (used in) operating activities (15,432 ) 10,006 4,588 Investing activities Purchase of investments — (800 ) — Change in note receivable 11,496 (6,610 ) (191 ) Contributed surplus to subsidiaries, net 3,935 (82,750 ) (1,500 ) Net cash provided by (used in) investing activities 15,431 (90,160 ) (1,691 ) Financing activities Net proceeds from issuance of convertible senior notes payable, net of costs — 96,576 — Repurchase of Class A ordinary shares — (16,503 ) (2,819 ) Net cash provided by (used in) financing activities — 80,073 (2,819 ) Net increase (decrease) in cash and cash equivalents (1 ) (81 ) 78 Cash and cash equivalents at beginning of the year 3 84 6 Cash and cash equivalents at end of the year 2 3 84 Supplementary information Non cash consideration from (to) subsidiaries, net (196 ) (242 ) (162 ) |
SCHEDULE III SUPPLEMENTARY INSU
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION | SCHEDULE III GREENLIGHT CAPITAL RE, LTD. SUPPLEMENTARY INSURANCE INFORMATION AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017 (expressed in thousands of U.S. dollars) Year Segment Deferred Reserves Unearned Net Total Net losses, Amortization Other Gross 2019 Property & Casualty $ 49,665 $ 470,588 $ 179,460 $ 483,580 $ 52,267 $ 388,487 $ 117,084 $ 29,822 $ 523,977 2018 Property & Casualty $ 49,929 $ 482,662 $ 211,789 $ 508,363 $ (323,106 ) $ 363,873 $ 145,475 $ 25,173 $ 567,531 2017 Property & Casualty $ 62,350 $ 464,380 $ 255,818 $ 626,004 $ 20,231 $ 502,404 $ 161,740 $ 26,356 $ 692,651 |
SCHEDULE IV SUPPLEMENTARY REINS
SCHEDULE IV SUPPLEMENTARY REINSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
SUPPLEMENTARY REINSURANCE INFORMATION | SCHEDULE IV GREENLIGHT CAPITAL RE, LTD. SUPPLEMENTARY REINSURANCE INFORMATION AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017 (expressed in thousands of U.S. dollars) Year Segment Direct gross Premiums Premiums Net written premiums Percentage of 2019 Property & Casualty $ — $ 48,667 $ 523,977 $ 475,310 110 % 2018 Property & Casualty $ — $ 102,788 $ 567,531 $ 464,743 122 % 2017 Property & Casualty $ — $ 56,587 $ 692,651 $ 636,064 109 % |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. 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 consolidated financial statements and the reported amounts of income and expenses during the period. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash and certain short-term, highly liquid investments with original maturity dates of three months or less. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents The Company maintains cash and cash equivalent balances to collateralize regulatory trusts and letters of credit issued to cedents (see Notes 6 and 15 ). The amount of cash encumbered varies depending on the collateral required by those cedents. Prior to the termination of the Joint Venture on January 2, 2019, the Company maintained cash in segregated accounts with prime brokers and derivative counterparties. |
Premium Revenue Recognition | Premium Revenue Recognition The Company writes excess of loss contracts and quota share contracts, and estimates the ultimate premiums for the contract period. These estimates are based on information received from the ceding companies and actuarial pricing models used by the Company. For excess of loss contracts, the total ultimate estimated premiums are recorded as premiums written at the inception of the contract. For quota share contracts, the premiums are recorded as written in the same periods in which the underlying insurance contracts are written, and are based on cession statements from cedents. These statements are typically received monthly or quarterly depending on the terms specified in each contract. For any reporting lag, premiums written are estimated based on the portion of the ultimate estimated premiums relating to the risks underwritten during the lag period. Premium estimates are reviewed by management at least quarterly. Such review includes a comparison of actual reported premiums to expected ultimate premiums along with a review of the aging and collection of premiums. Based on management’s review, the appropriateness of the premium estimates is evaluated, and any adjustments to these estimates are recorded in the period in which they are determined. Changes in premium estimates, including premium receivable on both excess of loss and quota share contracts, are not unusual and may result in significant adjustments in any period. A significant portion of amounts included in the caption “Reinsurance balances receivable” in the Company’s consolidated balance sheets represent estimated premiums written, net of commissions and brokerage, and are not currently due based on the terms of the underlying contracts. Additional premiums due on a contract that has no remaining coverage period are earned in full when written. Certain contracts allow for reinstatement premiums in the event of a loss. Reinstatement premiums are written and earned when a triggering loss event occurs. Premiums written are generally recognized as earned over the contract period in proportion to the risk covered. Unearned premiums represent the unexpired portion of reinsurance provided. |
Reinsurance Premiums Ceded | Reinsurance Premiums Ceded The Company reduces the risk of future losses on business assumed by reinsuring certain risks and exposures with other reinsurers (retrocessionaires). The Company remains liable to the extent that any retrocessionaire fails to meet its obligations and to the extent the Company does not hold sufficient security for their unpaid obligations. Ceded premiums are written during the period in which the risks incept and the associated expense is recognized over the contract period in proportion to the protection provided. Unearned premiums ceded represent the unexpired portion of reinsurance obtained. |
Acquisition Costs | Acquisition Costs Policy acquisition costs are costs that vary with, and are directly related to, the successful production of new and renewal business, and consist principally of commissions, taxes and brokerage expenses. Acquisition costs incurred on reinsurance assumed are shown net of commissions earned on reinsurance ceded. However, if the sum of a contract’s expected losses and loss expenses and deferred acquisition costs exceeds associated unearned premiums and expected investment income, a premium deficiency is determined to exist. In this event, deferred acquisition costs are written off to the extent necessary to eliminate the premium deficiency. If the premium deficiency exceeds deferred acquisition costs then a liability is accrued for the excess deficiency. There were no significant premium deficiency adjustments recognized during the periods presented herein. Policy acquisition costs also include profit commissions, which are recognized on a basis consistent with our estimate of losses and loss expenses. As of December 31, 2019 , $1.2 million ( 2018 : $8.5 million ) of profit commission reserves were included in the caption “Reinsurance balances payable” in the Company’s consolidated balance sheets. For the year ended December 31, 2019 , $6.7 million , ( 2018 : $18.2 million , 2017 : $2.0 million ) of net profit commission expense was included in the caption “Acquisition costs” in the Company’s consolidated statements of operations. |
Funds Withheld | Funds Withheld Funds withheld represent reinsurance balances retained as collateral by the Company on retroceded contracts. Any interest expense that the Company incurs while these funds are withheld are included under the caption “Net investment income (loss)” in the consolidated statements of operations. |
Loss and Loss Adjustment Expense Reserves and Recoverable | Loss and Loss Adjustment Expense Reserves and Recoverable The Company’s loss and loss adjustment expense reserves are composed of: ● case reserves resulting from claims notified to the Company by its clients; and ● reserves for estimated loss and loss adjustment expenses that have been incurred by insureds and reinsureds but not yet reported to the insurer or reinsurer (“IBNR”), including unknown future developments on loss and loss adjustment expenses which are known to the insurer or reinsurer. These reserve estimates are based on the Company’s own actuarial estimates derived from reports received from ceding companies, industry data and historical experience. These estimates are reviewed by the Company’s reserving committee at least quarterly and adjusted as necessary. Since reserves are estimates, the final settlement of losses may vary from the reserves established and any adjustments to the estimates, which may be material, are recorded in the period they are determined. Loss estimates are based upon actuarial and statistical projections, an assessment of currently available data, predictions of future developments, estimates of future trends and other factors. The final settlement of losses may vary, perhaps materially, from the reserves recorded. All adjustments to the estimates are recorded in the period in which they are determined. U.S. GAAP does not permit establishing loss reserves, which include case reserves and IBNR loss reserves, until the occurrence of an event which may give rise to a claim. As a result, only loss reserves applicable to losses incurred up to the reporting date are established, with no allowance for the establishment of loss reserves to account for expected future loss events. Loss and loss adjustment expenses recoverable represent the amounts due from retrocessionaires for unpaid loss and loss adjustment expenses on retrocession agreements. Ceded IBNR recoverable is estimated based on the Company’s actuarial estimates. These estimates are reviewed periodically and adjusted when deemed necessary. The Company may ultimately be unable to recover the loss and loss adjustment expense recoverable amounts due to the retrocessionaires’ inability to pay. The Company regularly evaluates the financial condition of its retrocessionaires and records provisions for uncollectible reinsurance expenses recoverable when recovery is no longer probable. For natural peril exposed business, loss reserves are generally established based on loss payments and case reserves reported by clients when, and if, received. Estimates for IBNR losses are added to the case reserves as the Company deems appropriate. To establish IBNR loss estimates, the Company uses estimates communicated by ceding companies, industry data and information, knowledge of the business written and management’s judgment. For all non-natural peril business, initial reserves for each individual contract are determined on the basis of a combination of: (i) the pricing analysis of the expected loss ratio performed prior to the contract being bound; (ii) the underwriter’s detailed knowledge of the cedent, its operations and future business plans; and (iii) the professional judgment and recommendation of the Chief Actuary. In the pricing analysis, the Company utilizes information both from the individual client and from industry data. This information typically includes, but is not limited to, data related to premiums, losses, exposure, business mix, industry performance and associated trends covering as much history as deemed appropriate. The level of detail within the data obtained varies greatly depending on the underlying contract, line of business, client and/or coverage provided. In all cases, the Company requests each client to provide data for each reporting period, which, depending on the contract, could be on a monthly or quarterly basis. The exact data reporting requirements are specified in the terms and conditions of each contract. Where practical, historical reserving data that is received from a client is compared to publicly available financial statements of the client to identify, confirm and monitor the accuracy and completeness of the data. Generally, the Company obtains regular updates of premium and loss related information for the current and historical periods, which are utilized to update the initial expected loss ratio. There may be a lag between (i) claims being reported by the underlying insured to the Company’s cedent and (ii) claims being reported by the Company’s cedent to the Company. This lag may impact the Company’s loss reserve estimates. Client reports have pre-determined due dates (for example, fifteen days after each month end). As a result, the lag depends in part upon the terms of the specific contract. The timing of the reporting requirements is designed so that the Company receives premium and loss information as soon as practicable once the client has closed its books. Accordingly, there should be a short lag in such reporting. Additionally, most of the contracts that have the potential for large single event losses have provisions that such loss notifications are provided to the Company immediately upon the occurrence of an event. Once the updated information is received, the Company uses a variety of standard actuarial methods for its analysis each quarter. Such methods may include the following: ● Paid Loss Development Method . Ultimate losses are estimated by calculating past paid loss development factors and applying them to exposure periods with further expected paid loss development. The paid loss development method assumes that losses are paid in a consistent pattern. It provides an objective test of reported loss projections because paid losses contain no reserve estimates. ● Reported Loss Development Method. Ultimate losses are estimated by calculating past reported loss development factors and applying them to exposure periods with further expected reported loss development. Since reported losses include payments and case reserves, changes in both of these amounts are incorporated in this method. ● Expected Loss Ratio Method. Ultimate losses are estimated by multiplying earned premiums by an expected loss ratio. The expected loss ratio is selected using industry data, historical company data and actuarial professional judgment. This method is typically used for lines of business and contracts where there are no historical losses or where past loss experience is not considered applicable to the current period. ● Bornhuetter-Ferguson Paid Loss Method. Ultimate losses are estimated by modifying expected loss ratios to the extent that paid losses experienced to date differ from what would have been expected to have been paid based upon the selected paid loss development pattern. This method avoids some of the distortions that could result from a large development factor being applied to a small base of paid losses to calculate ultimate losses. ● Bornhuetter-Ferguson Reported Loss Method. Ultimate losses are estimated by modifying expected loss ratios to the extent reported losses experienced to date differ from what would have been expected to have been reported based upon the selected reported loss development pattern. This method avoids some of the distortions that could result from a large development factor being applied to a small base of reported losses to calculate ultimate losses. ● Frequency / Severity Method. Ultimate losses are estimated under this method by multiplying the ultimate number of claims (i.e. the frequency multiplied by the exposure base on which the frequency has been determined), by the estimated ultimate average cost per claim (i.e. the severity). This approach enables trends and patterns in the rates of claims emergence (i.e. reporting) and settlement (i.e. closure), as well as in the average cost of claims, to be analyzed separately. In addition, the Company may supplement its analysis with other reserving methodologies that are deemed to be relevant to specific contracts. For each contract, the Company utilizes reserving methodologies that are deemed appropriate to calculate a best, or “point,” estimate of reserves. The decision as to whether to use a single methodology or a combination of multiple methodologies depends upon the segment of the portfolio being analyzed and the judgment of the actuaries. The Company’s reserving methodology does not require a fixed weighting of the various methods used. Certain methods are considered more appropriate than others depending on the type, structure, age, maturity and duration of the expected losses on the contract. For example, the ultimate incurred loss for contracts that are relatively new (and therefore have experienced little paid loss development) may be more appropriately estimated using a Bornhuetter-Ferguson reported loss method than a paid loss development method. The Company’s gross aggregate reserves are the sum of the point estimate reserves of all portfolio exposures. Generally, IBNR loss reserves are calculated by estimating the ultimate incurred losses at any point in time and subtracting cumulative paid claims and case reserves. Each quarter, the Company’s reserving committee, which is led by the Chief Actuary, meets to assess the adequacy of our loss reserves based on the reserve analysis and recommendations prepared by the Company’s reserving department. The reserving committee reviews, discusses and puts forward a loss reserve recommendation for the Audit Committee’s approval. Additionally, an independent third-party actuarial firm performs a quarterly reserve review and annually opines on the reasonableness and adequacy of the aggregate loss reserves. The Company provides the third-party actuarial firm with its pricing models, reserving analysis and any other data. Additionally, the actuarial firm may inquire as to the various assumptions and estimates used in the reserving analysis. The actuarial firm independently creates its own reserving models based on industry loss information, augmented by specific client loss information as well as its own independent assumptions and estimates. Based on various reserving methodologies that the actuarial firm considers appropriate, it creates a loss reserve estimate for each segment in the portfolio and recommends an aggregate loss reserve, including IBNR. In the event of material differences between the Company's aggregated booked reserves and the actuarial firm's recommended reserves, the reserving committee and Audit Committee would be notified, with the reserves adjusted as deemed appropriate. To date there have been no material differences resulting from the external actuary’s reviews requiring adjustments to the Company’s booked reserves. We do not typically experience significant claims processing backlogs, although such backlogs may occur following a major catastrophic event. At December 31, 2019 and 2018, we did not have a significant backlog in our claims processing. There were no significant changes in the actuarial methodology or assumptions relating to the Company’s loss and loss adjustment expense reserves during the year ended December 31, 2019 . |
Notes Receivable | Notes Receivable Notes receivable represent promissory notes receivable from third parties. These notes are recorded at cost plus accrued interest, if any, net of any valuation allowance. Interest income, change in valuation allowance and realized gains or losses on the sale of notes receivable are included in the caption “Net investment income (loss)” in the Company’s consolidated statements of operations. The Company regularly reviews all notes receivable individually for impairment and records valuation allowance provisions for uncollectible and non-performing notes. When there is uncertainty as to the collection of interest contractually due, the Company places the note on non-accrual status. For notes receivable placed on non-accrual status, the notes are presented excluding any accrued interest amount. The Company resumes the accrual of interest on a note when none of the principal or interest remains past due, and the Company expects to collect the remaining contractual principal and interest. Interest collected on notes that are placed on non-accrual status is recorded as interest income when collected, provided that the recorded value of the note is deemed to be fully collectible. Where doubt exists as to the collectability of the remaining recorded value of the notes placed on non-accrual status, any payments received are applied to reduce the recorded value of the notes. |
Deposit Assets and Liabilities | Deposit Assets and Liabilities The Company applies deposit accounting to reinsurance contracts that do not transfer sufficient insurance risk to merit reinsurance accounting. Under deposit accounting, an asset or liability is recognized based on the consideration paid or received. The deposit asset or liability balance is subsequently adjusted using the interest method with a corresponding income or expense recorded in the Company’s consolidated statements of operations under the caption “Other income (expense).” The Company’s deposit assets and liabilities are recorded in the Company’s consolidated balance sheets in the caption “Reinsurance balances receivable” and “Reinsurance balances payable,” respectively. |
Equity Method Accounted Investments | Equity Method Accounted Investments Investee companies that are not consolidated, but over which the Company exercises significant influence, are accounted for under the equity method of accounting. Whether the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee company’s board of directors and ownership level, which is generally a 20% to 50% interest in the voting securities of the investee company. Under the equity method of accounting, an investee company’s accounts are not reflected within the Company’s consolidated balance sheets and statements of operations; however, the Company’s share of the earnings or losses of the investee company is reflected in the caption ‘‘Net investment income (loss)’’ in the consolidated statements of operations. The Company’s carrying value in an equity method investee company is reflected in the caption ‘‘Other investments’’ in the Company’s consolidated balance sheets. When the Company’s carrying value in an equity method investee company is reduced to zero, no further losses are recorded in the Company’s consolidated financial statements unless the Company guaranteed the obligations of the investee company or has committed additional funding (see Notes 3 and 4 ). |
Variable Interest Entities | Variable Interest Entities The Company accounts for the investments it makes in certain legal entities in which equity investors do not have (1) sufficient equity at risk for the legal entity to finance its activities without additional subordinated financial support, or (2) as a group, the holders of the equity investment at risk do not have either the power, through voting or similar rights, to direct the activities of the legal entity that most significantly impact the entity’s economic performance, or (3) the obligation to absorb the expected losses of the legal entity or the right to receive expected residual returns of the legal entity. These legal entities are referred to as “variable interest entities” or “VIEs.” The Company would consolidate the results of any such entity in which it determined that it had a controlling financial interest. The Company would have a “controlling financial interest” in such an entity if the Company had both the power to direct the activities that most significantly affect the VIE’s economic performance and the obligation to absorb the losses of, or right to receive benefits from, the VIE that could be potentially significant to the VIE. On a quarterly basis, the Company reassesses whether it has a controlling financial interest in any such entities |
Financial Instruments | Financial Instruments The Company invests in debt instruments and equity securities that are classified as “trading securities” and are carried at fair value. The Company purchases “other investments” which may include investments in private and unlisted equity securities, limited partnerships and commodities, all of which are carried at fair value. For securities classified as “trading securities” and “other investments,” any realized and unrealized gains or losses are determined on the basis of the specific identification method (by reference to cost or amortized cost, as appropriate) and included in the caption “Net investment income (loss)” in the Company’s consolidated statements of operations. Interest income and interest expense are recorded on an accrual basis. Prior to the liquidation of the Joint Venture, dividend income and expense were recorded on the ex-dividend date. “Ex-dividend” indicates that the quoted price of a share of stock excludes the value of a declared dividend. Investors purchasing shares between the declaration and ex-dividend dates are entitled to receive the dividend, whereas investors purchasing shares on or after the ex-dividend date are not entitled to the dividend. |
Transfer of Financial Assets | Transfer of Financial Assets The Company accounts for transfers of financial assets as sales when it has surrendered control over the related assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company’s continuing involvement with the assets transferred. Gains and losses stemming from transfers reported as sales, if any, are included as realized gains (losses) within the caption “Net investment income (loss)” in the accompanying consolidated statements of operations. In instances where a transfer of financial assets does not qualify for sale accounting, the transaction is accounted for as a collateralized borrowing. |
Share-Based Compensation | Share-Based Compensation The Company has established a stock incentive plan for directors, employees and consultants. The Company recognizes share-based compensation costs on the basis of the fair value at the grant date of the award. The Company measures compensation for restricted shares and restricted stock units (“RSUs”) based on the price of the Company’s common shares at the grant date. For restricted shares and RSUs with both service and performance vesting conditions, the expense is recognized based on management’s estimate of the probability of the performance conditions being achieved based on historical results and expectations of future results. If the performance conditions are expected to be met, the expense is attributed to the period for which the requisite service has been rendered. For restricted shares and RSUs with only service vesting conditions, the expense is recognized on a straight line basis over the vesting period, net of any estimated or expected forfeitures. The forfeiture rate is estimated based on the Company’s historical actual forfeitures relating to restricted shares and RSUs granted to employees. The forfeiture rate is reviewed annually and adjusted as necessary. No forfeiture rate is used for restricted shares granted to directors which vest over a twelve -month period. Determining the fair value of share purchase options at the grant date requires significant estimation and judgment. The Company uses the Black-Scholes option pricing model to assist in the calculation of fair value for share purchase options. The model requires estimation of various inputs such as estimated term, forfeiture and dividend rates and expected volatility. In determining the grant date fair value, the Company uses the full ten -year life of the options as the estimated term, and assumes no forfeitures and no dividends paid during the life of the options. The estimate of expected volatility is based on the daily historical trading data of the Company’s Class A ordinary shares from the date that these shares commenced trading (May 24, 2007) to the grant date. |
Convertible Notes | Convertible Notes The Company has determined that the senior convertible notes’ cash conversion option represents an embedded derivative, which has therefore been bifurcated from the underlying contract for financial reporting purposes. For the debt component, the Company recorded a liability equivalent to the present value of comparable debt without the conversion features at the time of issuance. The remainder of the proceeds, which represented the embedded derivative, were included in the caption “Additional paid-in capital” in the Company’s consolidated balance sheets. Costs incurred in issuing the convertible notes consisted primarily of underwriting, legal, accounting and printing fees. The Company allocated the costs associated with the debt and derivative components ratably to the liability and shareholders’ equity balances, respectively. The debt-related portion of these costs has been capitalized and deducted from the principal of senior convertible notes payable in the Company’s consolidated balance sheets. These costs are amortized over the term of the debt and are included in the caption “Interest expense” in the Company’s consolidated statements of operations. The issuance costs allocated to the embedded derivative have been deducted from additional paid-in capital. |
Foreign Exchange | Foreign Exchange The reporting and functional currency of the Company and all its subsidiaries is the U.S. dollar. Transactions in foreign currencies are recorded in U.S. dollars at the exchange rates in effect on the transaction date. Monetary assets and liabilities in foreign currencies at the balance sheet date are converted at the exchange rate in effect at the balance sheet date and exchange gains and losses, if any, are included in the caption “Other income (expense), net” in the Company’s consolidated statements of operations. |
Other Assets | Other Assets Other assets consist primarily of prepaid expenses, fixed assets, right-of-use lease assets, other receivables and deferred tax assets. |
Other Liabilities | Other Liabilities Other liabilities consist primarily of accruals for legal and other professional fees, employee bonuses and lease liabilities. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company has no comprehensive income or loss, other than the net income or loss disclosed in the consolidated statements of operations. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company’s unvested restricted stock awards, which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are considered “participating securities” for the purposes of calculating earnings (loss) per share. Basic earnings per share is calculated on the basis of the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings (or loss) per share includes the dilutive effect of the following: • Restricted Stock Units (“RSUs”) issued that would convert to common shares upon vesting; • additional potential common shares issuable when stock options are exercised, determined using the treasury stock method; and • those common shares with the potential to be issued by virtue of convertible debt and other such convertible instruments, determined using the treasury stock method. Diluted earnings (or loss) per share contemplates a conversion to common shares of all convertible instruments only if they are dilutive in nature with regards to earnings per share. In the event of a net loss, all RSUs, stock options outstanding, convertible debt and participating securities are excluded from the calculation of both basic and diluted loss per share as their inclusion would be anti-dilutive. |
Taxation | Taxation Under current Cayman Islands law, no corporate entity, including GLRE and Greenlight Re, is obligated to pay taxes in the Cayman Islands on either income or capital gains. The Company has an undertaking from the Governor-in-Cabinet of the Cayman Islands, pursuant to the provisions of the Tax Concessions Law, as amended, that, in the event that the Cayman Islands enacts any legislation that imposes tax on profits, income, gains or appreciations, or any tax in the nature of estate duty or inheritance tax, such tax will not be applicable to GLRE, Greenlight Re nor their respective operations, or to the Class A or Class B ordinary shares or related obligations, before February 1, 2025. Verdant is incorporated in Delaware and therefore is subject to taxes in accordance with the U.S. federal rates and regulations prescribed by the U.S. Internal Revenue Service (“IRS”). Verdant’s taxable income is generally expected to be taxed at a marginal rate of 21% ( 2018 : 21% ). Verdant’s tax years 2014 and beyond remain open and subject to examination by the IRS. GRIL is incorporated in Ireland and therefore is subject to the Irish corporation tax rate of 12.5% on its trading income, and 25% on its non-trading income. The Company records a valuation allowance to the extent that the Company considers it more likely than not that all or a portion of the deferred tax asset will not be realized in the future. |
Segment Information | Segment Information The Company manages its business on the basis of one operating segment, Property and Casualty Reinsurance. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Standards Adopted In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under the new guidance, lessees are required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Leases (Topic 842) is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted Leases (Topic 842) during the first quarter of 2019 using the cumulative-effect adjustment transition method, which applies the provisions of the standard at the effective date without adjusting the comparative periods presented. The Company has adopted the following practical expedients: • Carry forward of historical lease classifications and current accounting treatment for existing land easements; • Short-term lease accounting policy election allowing lessees to not recognize right-of-use assets and liabilities for leases with a term of 12 months or less; and • Hindsight practical expedient for remeasuring the lease terms on the basis of information obtained between entering into the lease and adopting Leases (Topic 842). Adoption of Leases (Topic 842) resulted in the recognition of operating lease right-of-use asset and corresponding lease liability of $0.3 million which were included in the Company’s condensed consolidated balance sheets under the captions “Other Assets” and “Other Liabilities,” respectively, as of December 31, 2019 . Recently Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). As compared to current GAAP, which delays the recognition of credit losses until it is probable a loss has been incurred, ASU 2016-13 broadens the information that must be considered in the development of an expected credit loss estimate. Under ASU 2016-13, past events, current conditions, and reasonable and supportable forecasts are all considered in the development of this estimate. ASU 2016-13 is effective for public business entities that are SEC filers for annual and interim periods beginning after December 15, 2019. The financial assets included in the captions “Reinsurance balances receivable,” “Notes Receivable,” and “Loss and loss adjustment expenses recoverable” in the Company’s consolidated balance sheets are carried at amortized cost and are therefore affected by ASU 2016-13. The Company is currently finalizing its assessment of the impact of this guidance as it relates to these balances; however, any consequent adjustments to these balances are not expected to have a material impact on the Company’s consolidated statements of operations and financial position. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Restricted Cash and Cash Equivalents | The following table reconciles the cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total presented in the consolidated statements of cash flows: December 31, 2019 December 31, 2018 ($ in thousands) Cash and cash equivalents $ 25,813 $ 18,215 Restricted cash and cash equivalents 742,093 685,016 Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows $ 767,906 $ 703,231 As of December 31, 2019 and 2018 , the restricted cash and cash equivalents were composed of the following: December 31, 2019 December 31, 2018 ($ in thousands) Cash held as collateral in trust accounts $ 528,686 $ 463,361 Cash collateral relating to letters of credit issued 213,407 221,655 Total restricted cash and cash equivalents $ 742,093 $ 685,016 |
Schedule of Provision for Valuation Allowance | The following table provides a roll-forward of the Company’s provision for valuation allowance: Year ended December 31 2019 2018 2017 ($ in thousands) Balance at beginning of period $ 9,012 $ 9,012 $ 9,012 Net increase (decrease) in provision 5,988 — — Balance at end of period $ 15,000 $ 9,012 $ 9,012 |
Schedule of Cash and Cash Equivalents | The following table reconciles the cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total presented in the consolidated statements of cash flows: December 31, 2019 December 31, 2018 ($ in thousands) Cash and cash equivalents $ 25,813 $ 18,215 Restricted cash and cash equivalents 742,093 685,016 Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows $ 767,906 $ 703,231 The Company’s cash and cash equivalents as of December 31, 2019 and 2018 were composed of the following: December 31, 2019 December 31, 2018 ($ in thousands) Cash at banks $ 25,813 $ 7,295 Cash held with brokers — 10,920 Total cash and cash equivalents $ 25,813 $ 18,215 |
Schedule of Interest Income and Interest Expense | For the year ended December 31, 2019 , 2018 and 2017 , the interest income (expense) on deposit accounted contracts was as follows: Year ended December 31 2019 2018 2017 ($ in thousands) Deposit interest income $ 3,316 $ 1,224 $ 205 Deposit interest expense (543 ) (1,510 ) (555 ) Deposit interest income (expense), net $ 2,773 $ (286 ) $ (350 ) |
Schedule of Weighted Average Number of Shares | The table below presents the shares outstanding for the purposes of the calculation of earnings (loss) per share for the years ended December 31, 2019, 2018 and 2017 : Year ended December 31 2019 2018 2017 Weighted average shares outstanding - basic 36,079,419 35,951,659 37,002,260 Effect of dilutive employee and director share-based awards — — — Weighted average shares outstanding - diluted 36,079,419 35,951,659 37,002,260 Anti-dilutive stock options outstanding 875,627 935,627 358,741 Participating securities excluded from calculation of loss per share 936,669 432,457 331,510 |
INVESTMENT IN RELATED PARTY I_2
INVESTMENT IN RELATED PARTY INVESTMENT FUND (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information of Investment | The Company has determined that for its fiscal year ended December 31, 2019 , the Company’s investment in SILP met at least one of the conditions of a significant subsidiary under SEC’s Regulation S-X, Rule 3-09. Accordingly, the audited financial statements for SILP have been attached as an exhibit (Exhibit 99.1) to this Form 10-K. The summarized financial statements of SILP are presented below. Summarized Statement of Assets and Liabilities of Solasglas Investments, LP December 31, 2019 December 31, 2018 ($ in thousands) Assets Investments, at fair value $ 162,928 $ 401,318 Derivative contracts, at fair value 6,324 63,143 Due from brokers 68,060 77,821 Cash and cash equivalents 111,046 13,200 Interest and dividends receivable 47 2,358 Total assets 348,405 557,840 Liabilities and partners’ capital Liabilities Investments sold, not yet purchased, at fair value (47,834 ) (198,728 ) Notes Payable — (30,000 ) Derivative contracts, at fair value (2,054 ) (26,344 ) Due to brokers (1,180 ) (23,951 ) Interest and dividends payable (828 ) (1,238 ) Other liabilities (101 ) (169 ) Total liabilities (51,997 ) (280,430 ) Net Assets $ 296,408 $ 277,410 GLRE Limited Partners’ share of Net Assets $ 240,056 $ 235,612 Summarized Statement of Operations of Solasglas Investments, LP Year ended December 31, 2019 From September 1, 2018 (commencement of operations) to December 31, 2018 ($ in thousands) Investment income Dividend income (net of withholding taxes) $ 3,179 $ 2,160 Interest income 3,884 1,868 Total Investment income 7,063 4,028 Expenses Management fee (4,893 ) (3,100 ) Interest (2,408 ) (2,627 ) Dividends (1,670 ) (1,608 ) Professional fees and other (1,141 ) (483 ) Total expenses (10,112 ) (7,818 ) Net investment income (loss) (3,049 ) (3,790 ) Realized and change in unrealized gains (losses) Net realized gain (loss) 34,539 (80,996 ) Net change in unrealized appreciation (depreciation) 28,515 14,789 Net gain (loss) on investment transactions 63,054 (66,207 ) Net income (loss) $ 60,005 $ (69,997 ) GLRE Limited Partners’ share of net income (loss) (1) $ 46,056 $ (60,573 ) 1 Net of management fees of $4.9 million and $3.1 million for year ended December 31, 2019 and the period from September 1, 2018 (inception) to December 31, 2018 respectively, and net of accrued performance allocation of $5.0 million and nil for the year ended December 31, 2019 and the period from inception to December 31, 2018, respectively. See Note 14 for further details. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Gain (Loss) on Securities | The following table summarizes the change in unrealized gains and losses and the realized gains and losses on financial instruments included in the caption “Net investment income (loss)” in the Company’s consolidated statements of operations for the years ended December 31, 2019 , 2018 and 2017 : Year ended December 31 2019 2018 2017 ($ in thousands) Gross realized gains $ — $ 303,674 $ 267,904 Gross realized losses (14,150 ) (540,561 ) (180,286 ) Net realized gains (losses) $ (14,150 ) $ (236,887 ) $ 87,618 Change in unrealized gains and losses $ 8,380 $ (32,597 ) $ (41,444 ) |
Schedule of Trading Securities, Debt and Equities | At December 31, 2018 , the following long positions were included in the caption “Equity securities, trading”: Cost Unrealized gains Unrealized losses Fair value ($ in thousands) Equities – listed $ 50,521 $ 1,015 $ (14,628 ) $ 36,908 Total equity securities $ 50,521 $ 1,015 $ (14,628 ) $ 36,908 |
Schedule of Other Investments | At December 31, 2019 , the following securities were included in the caption “Other investments”: Cost Unrealized Unrealized Fair value / carrying value ($ in thousands) Private investments and unlisted equities $ 10,420 $ 265 $ (4 ) $ 10,681 Investment accounted for under the equity method — — — 5,703 Total other investments $ 16,384 At December 31, 2018 , the following securities were included in the caption “Other investments”: Cost Unrealized Unrealized Fair value / carrying value ($ in thousands) Private investments and unlisted equity funds $ 6,672 $ — $ (267 ) $ 6,405 Investment accounted for under the equity method — — — 5,003 Total other investments $ 11,408 |
Schedule of Fair Value Hierarchy | The following table presents the Company’s investments, categorized by the level of the fair value hierarchy as of December 31, 2018 : Fair value measurements as of December 31, 2018 Quoted prices in Significant other Significant Total Assets: ($ in thousands) Listed equity securities $ 36,908 $ — $ — $ 36,908 Private and unlisted equity securities — — 664 664 $ 36,908 $ — $ 664 $ 37,572 Investment in related party investment fund measured at net asset value (1) (2) 235,612 Equities without readily determinable fair values for which measurement alternative is applied 5,741 Investment accounted for under the equity method 5,003 Total investments $ 283,928 (1) Investments measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The fair value amounts are presented in the above table to facilitate reconciliation to the consolidated balance sheets. (2) See Note 3 “Investment in related party investment fund”. |
Schedule of Fair Value Measurements Using Significant Unobservable Inputs | The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the year ended December 31, 2019 : Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year ended December 31, 2019 Assets Debt instruments Private and unlisted equity securities Total ($ in thousands) Beginning balance $ — $ 664 $ 664 Sales — (664 ) (664 ) Total realized and unrealized gains (losses) and amortization included in earnings, net — — — Transfers out of Level 3 — — — Ending balance $ — $ — $ — The following table presents the reconciliation of the balances for all investments measured at fair value using significant unobservable inputs (Level 3) for the year ended December 31, 2018: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year ended December 31, 2018 Assets Debt instruments Private and unlisted equity securities Total ($ in thousands) Beginning balance $ 880 $ 6,108 $ 6,988 Sales $ (916 ) $ (1,890 ) $ (2,806 ) Total realized and unrealized gains (losses) and amortization included in earnings, net $ 36 $ (304 ) $ (268 ) Transfers out of Level 3 $ — $ (3,250 ) $ (3,250 ) Ending balance $ — $ 664 $ 664 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table reconciles the cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total presented in the consolidated statements of cash flows: December 31, 2019 December 31, 2018 ($ in thousands) Cash and cash equivalents $ 25,813 $ 18,215 Restricted cash and cash equivalents 742,093 685,016 Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows $ 767,906 $ 703,231 The Company’s cash and cash equivalents as of December 31, 2019 and 2018 were composed of the following: December 31, 2019 December 31, 2018 ($ in thousands) Cash at banks $ 25,813 $ 7,295 Cash held with brokers — 10,920 Total cash and cash equivalents $ 25,813 $ 18,215 |
RESTRICTED CASH AND CASH EQUI_2
RESTRICTED CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Restricted Cash and Cash Equivalents | The following table reconciles the cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total presented in the consolidated statements of cash flows: December 31, 2019 December 31, 2018 ($ in thousands) Cash and cash equivalents $ 25,813 $ 18,215 Restricted cash and cash equivalents 742,093 685,016 Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows $ 767,906 $ 703,231 As of December 31, 2019 and 2018 , the restricted cash and cash equivalents were composed of the following: December 31, 2019 December 31, 2018 ($ in thousands) Cash held as collateral in trust accounts $ 528,686 $ 463,361 Cash collateral relating to letters of credit issued 213,407 221,655 Total restricted cash and cash equivalents $ 742,093 $ 685,016 |
LOSS AND LOSS ADJUSTMENT EXPE_2
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | At December 31, 2019 and 2018 , loss and loss adjustment expense reserves were composed of the following: 2019 2018 ($ in thousands) Case reserves $ 217,834 $ 211,910 IBNR 252,754 270,752 Total $ 470,588 $ 482,662 A summary of changes in outstanding loss and loss adjustment expense reserves for all lines of business consolidated for the years ended December 31, 2019, 2018 and 2017 is as follows: Consolidated 2019 2018 2017 ($ in thousands) Gross balance at January 1 $ 482,662 $ 464,380 $ 306,641 Less: Losses recoverable (43,705 ) (29,459 ) (2,704 ) Net balance at January 1 438,957 434,921 303,937 Incurred losses related to: Current year 357,237 363,871 466,247 Prior years 31,250 2 36,157 Total incurred 388,487 363,873 502,404 Paid losses related to: Current year (167,508 ) (160,975 ) (220,298 ) Prior years (217,998 ) (197,097 ) (154,183 ) Total paid (385,506 ) (358,072 ) (374,481 ) Foreign currency revaluation 1,119 (1,765 ) 3,061 Net balance at December 31 443,057 438,957 434,921 Add: Losses recoverable 27,531 43,705 29,459 Gross balance at December 31 $ 470,588 $ 482,662 $ 464,380 The changes in the outstanding loss and loss adjustment expense reserves for health claims for the years ended December 31, 2019, 2018 and 2017 are as follows: Health 2019 2018 2017 ($ in thousands) Gross balance at January 1 $ 24,502 $ 22,181 $ 18,993 Less: Losses recoverable — — — Net balance at January 1 24,502 22,181 18,993 Incurred losses related to: Current year 33,736 56,868 44,539 Prior years 3,569 1,508 3,739 Total incurred 37,305 58,376 48,278 Paid losses related to: Current year (17,410 ) (34,696 ) (23,814 ) Prior years (26,334 ) (21,359 ) (21,276 ) Total paid (43,744 ) (56,055 ) (45,090 ) Foreign currency revaluation — — — Net balance at December 31 18,063 24,502 22,181 Add: Losses recoverable — — — Gross balance at December 31 $ 18,063 $ 24,502 $ 22,181 |
Schedule of Incurred and Paid Claims Development | The information in the tables below about incurred and paid claims development for the years ended December 31, 2010 to 2018 , is presented as unaudited supplementary information. Health Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 36,075 $ 35,924 $ 36,224 $ 36,159 $ 36,159 $ 36,145 $ 36,145 $ 36,145 $ 36,145 $ 36,145 $ — 2011 36,140 36,212 35,821 35,800 35,595 35,595 35,595 35,566 35,566 — 2012 24,712 23,088 22,780 22,681 22,671 22,671 22,658 22,658 — 2013 30,544 33,841 34,203 33,960 33,945 33,945 33,944 — 2014 32,875 30,191 29,514 29,072 29,031 28,970 — 2015 34,097 33,530 34,116 33,894 33,885 9 2016 37,747 40,889 41,255 41,355 193 2017 45,007 46,455 46,687 72 2018 56,868 60,176 1,463 2019 33,736 16,326 Total $ 373,122 18,063 Health Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 17,826 $ 35,795 $ 36,224 $ 36,159 $ 36,159 $ 36,145 $ 36,145 $ 36,145 $ 36,145 $ 36,145 2011 26,979 35,542 35,814 35,800 35,595 35,595 35,595 35,566 35,566 2012 14,896 22,691 22,780 22,679 22,671 22,671 22,658 22,658 2013 21,459 33,841 34,024 33,957 33,944 33,944 33,944 2014 19,056 28,515 29,117 29,038 29,032 28,970 2015 14,529 31,802 34,044 33,894 33,876 2016 21,881 39,988 41,255 41,162 2017 23,834 44,125 46,615 2018 34,696 58,713 2019 17,410 Total 355,059 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Health) $ 18,063 Multiline Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — 2011 — — — — — — — — — — 2012 — — — — — — — — — 2013 — — — — — — — — 2014 2,390 2,390 2,390 2,609 2,625 2,586 1,173 2015 27,956 28,103 30,536 32,038 30,941 11,885 2016 55,758 60,042 60,757 59,805 26,803 2017 81,836 79,466 83,232 43,596 2018 58,832 50,944 30,215 2019 46,131 35,096 Total $ 273,639 $ 148,768 Multiline Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — 2011 — — — — — — — — — 2012 — — — — — — — — 2013 — — — — — — — 2014 — — 145 566 1,092 1,413 2015 30 2,828 9,990 16,107 19,056 2016 5,859 16,577 27,108 33,002 2017 9,562 27,363 39,636 2018 8,134 20,729 2019 11,035 Total 124,871 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Multiline) $ 148,768 General Liability Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 12,111 $ 14,327 $ 17,484 $ 19,649 $ 21,664 $ 25,946 $ 28,251 $ 28,251 $ 28,251 $ 28,251 $ — 2011 20,925 30,693 40,756 44,897 61,446 77,105 77,105 77,105 77,105 — 2012 12,626 18,133 16,921 29,554 31,145 31,161 31,274 30,902 — 2013 3,018 2,689 4,666 4,511 4,510 4,916 4,770 — 2014 1,238 1,229 1,174 1,033 1,355 1,000 238 2015 1,699 1,690 1,756 1,979 2,152 1,227 2016 6,203 6,519 7,124 7,867 3,197 2017 5,431 6,525 7,379 4,556 2018 2,901 3,438 2,152 2019 1,002 976 Total $ 163,866 $ 12,346 General Liability Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 2,107 $ 5,096 $ 9,356 $ 14,051 $ 17,471 $ 19,228 $ 28,251 $ 28,251 $ 28,251 $ 28,251 2011 2,873 11,751 20,030 25,018 32,954 77,105 77,105 77,105 77,105 2012 1,750 9,926 13,142 15,836 30,667 30,687 30,891 30,902 2013 1,371 1,917 2,298 4,191 4,274 4,652 4,770 2014 18 146 413 548 492 762 2015 69 293 532 547 925 2016 122 1,589 3,277 4,670 2017 136 1,412 2,823 2018 165 1,286 2019 26 Total 151,520 All outstanding liabilities before 2010, net of reinsurance 3 Liabilities for claims and claims adjustment expenses, net of reinsurance (General Liability) $ 12,349 Motor Casualty Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 64,264 $ 74,260 $ 86,881 $ 83,496 $ 84,742 $ 88,377 $ 88,022 $ 88,008 $ 88,012 $ 88,034 $ — 2011 53,035 57,498 57,342 62,921 70,880 70,435 70,495 70,495 70,478 — 2012 132,284 131,196 131,896 131,202 131,305 131,302 131,302 131,302 — 2013 182,833 179,930 174,744 174,782 174,848 174,925 174,931 — 2014 93,718 92,844 94,688 94,385 94,147 94,192 — 2015 128,199 130,410 129,991 132,853 134,951 1,278 2016 166,389 169,294 174,037 179,801 1,001 2017 187,109 188,754 195,258 7,033 2018 150,700 170,016 26,749 2019 168,154 69,111 Total $ 1,407,117 $ 105,172 Motor Casualty Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 23,413 $ 44,889 $ 60,630 $ 70,356 $ 79,089 $ 82,266 $ 88,008 $ 88,008 $ 88,012 $ 88,034 2011 19,082 36,462 49,569 58,244 65,018 70,433 70,433 70,433 70,478 2012 58,585 118,142 126,622 128,913 131,302 131,302 131,302 131,302 2013 86,558 159,200 171,855 174,658 174,848 174,925 174,931 2014 49,994 86,297 89,687 94,385 94,147 94,192 2015 81,093 125,645 129,174 129,571 133,673 2016 97,325 157,948 170,658 178,800 2017 115,204 170,157 188,225 2018 83,652 143,267 2019 99,043 Total 1,301,945 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Motor Casualty) $ 105,172 Motor Property Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 560 $ 656 $ 671 $ 684 $ 662 $ 662 $ 667 $ 667 $ 667 $ 667 $ — 2011 3,276 3,271 3,343 3,285 3,285 3,306 3,306 3,306 3,303 — 2012 36,985 36,129 36,008 35,998 35,922 35,922 35,922 35,922 — 2013 46,189 45,629 44,728 44,656 44,695 44,719 44,478 — 2014 18,870 18,797 19,056 19,000 19,006 19,021 — 2015 22,035 22,516 22,505 23,263 23,939 100 2016 27,853 28,279 29,090 29,051 200 2017 39,986 39,621 40,394 683 2018 42,336 47,209 7,091 2019 43,103 18,000 Total $ 287,087 $ 26,074 Motor Property Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 560 $ 620 $ 620 $ 620 $ 620 $ 644 $ 667 $ 667 $ 667 $ 667 2011 1,418 2,944 3,305 3,285 3,285 3,303 3,303 3,303 3,303 2012 16,902 34,588 35,854 35,903 35,922 35,922 35,922 35,922 2013 21,112 41,066 44,363 44,431 44,476 44,476 44,478 2014 10,305 17,621 18,420 19,000 19,006 19,021 2015 13,859 22,013 22,505 22,595 23,839 2016 16,725 27,023 28,609 28,851 2017 23,091 37,058 39,711 2018 23,576 40,118 2019 25,103 Total 261,013 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Motor Property) $ 26,074 Other Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 4,008 $ 3,858 $ 4,291 $ 4,130 $ 4,130 $ 4,130 $ 3,955 $ 4,130 $ 3,955 $ 3,955 $ — 2011 7,360 8,099 7,525 7,473 7,470 7,468 7,468 7,468 7,468 — 2012 4,017 3,591 3,756 3,773 3,759 3,755 3,782 3,777 42 2013 2,492 2,875 2,840 2,821 2,801 2,755 2,586 46 2014 4,768 3,525 1,776 1,701 1,084 2,125 — 2015 4,794 6,769 6,898 4,519 4,229 298 2016 8,360 10,401 9,142 9,131 1,751 2017 9,087 6,011 6,447 1,913 2018 6,165 7,519 1,931 2019 19,225 13,828 Total $ 66,462 $ 19,809 Other Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 864 $ 1,593 $ 3,123 $ 3,130 $ 3,406 $ 3,477 $ 3,955 $ 3,955 $ 3,955 $ 3,955 2011 1,162 7,547 7,513 7,468 7,468 7,468 7,468 7,468 7,468 2012 3,002 3,251 3,676 3,683 3,684 3,688 3,735 3,735 2013 213 1,828 2,426 2,339 2,323 2,578 2,540 2014 197 659 1,124 1,282 1,084 2,125 2015 472 1,387 2,010 3,399 3,931 2016 1,473 3,107 5,646 7,380 2017 484 3,083 4,534 2018 962 5,588 2019 5,397 Total 46,653 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Other) $ 19,809 Property Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 39,106 $ 41,983 $ 51,698 $ 51,483 $ 52,263 $ 52,507 $ 53,723 $ 53,574 $ 53,495 $ 53,506 $ — 2011 73,309 83,261 79,794 80,402 81,894 83,012 83,067 83,006 83,296 — 2012 63,961 50,183 50,874 52,812 53,218 53,473 53,737 53,823 — 2013 60,955 59,002 61,786 62,504 62,491 62,431 62,774 537 2014 41,740 45,153 46,845 47,085 46,874 47,030 510 2015 27,872 30,352 31,752 30,954 30,615 593 2016 25,633 26,127 24,005 23,477 1,450 2017 84,771 78,430 69,042 4,804 2018 28,219 30,291 14,563 2019 22,738 18,684 Total $ 476,592 $ 41,141 Property Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 20,611 $ 40,858 $ 42,697 $ 43,406 $ 47,914 $ 48,438 $ 53,408 $ 53,542 $ 53,495 $ 53,506 2011 49,441 74,383 77,182 79,022 81,214 82,370 82,655 83,006 83,296 2012 32,085 45,887 50,242 52,657 53,211 53,259 53,737 53,823 2013 34,807 55,674 58,533 60,352 61,083 61,996 62,237 2014 20,230 40,172 43,640 45,211 46,301 46,520 2015 12,939 25,453 28,846 29,816 30,022 2016 9,944 18,198 21,040 22,027 2017 43,281 56,397 64,238 2018 5,365 15,728 2019 4,054 Total 435,451 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Property) $ 41,141 Professional Liability Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 3,875 $ 3,331 $ 3,571 $ 3,713 $ 3,907 $ 3,936 $ 3,922 $ 3,921 $ 3,921 $ 3,921 $ 424 2011 6,043 6,910 7,367 8,064 8,121 7,950 8,196 8,196 8,023 262 2012 11,236 11,241 11,785 12,221 12,411 13,131 13,131 12,565 885 2013 12,435 13,319 14,844 16,494 17,314 17,489 17,290 2,614 2014 19,229 18,630 18,593 21,149 22,152 22,475 6,017 2015 18,548 18,545 21,100 22,528 22,748 9,952 2016 13,778 16,960 17,328 16,925 9,028 2017 10,252 9,940 9,762 6,673 2018 4,482 4,468 3,327 2019 586 441 Total $ 118,763 $ 39,623 Professional Liability Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ — $ 35 $ 402 $ 834 $ 1,112 $ 1,478 $ 1,620 $ 1,740 $ 3,497 $ 3,497 2011 110 1,331 3,680 5,244 6,580 7,285 7,781 7,830 7,761 2012 533 3,668 6,392 8,836 10,268 11,780 11,947 11,680 2013 710 3,482 7,771 11,175 14,092 14,863 14,676 2014 1,370 5,440 9,716 14,173 16,448 16,458 2015 1,186 3,349 9,012 11,953 12,796 2016 342 2,187 4,915 7,897 2017 228 1,437 3,089 2018 241 1,141 2019 145 Total 79,140 All outstanding liabilities before 2010, net of reinsurance 2,120 Liabilities for claims and claims adjustment expenses, net of reinsurance (Professional Liability) $ 41,743 Workers' Compensation Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 11,181 $ 11,736 $ 12,426 $ 13,108 $ 13,108 $ 13,108 $ 13,108 $ 13,108 $ 13,108 $ 13,108 $ — 2011 14,915 15,233 16,861 16,861 16,861 16,861 16,861 16,861 16,861 — 2012 11,763 12,213 12,213 12,213 12,213 12,213 12,213 12,213 — 2013 4,751 4,751 4,751 4,751 4,751 4,751 4,751 — 2014 — — — 3 — — — 2015 1,014 1,010 948 950 951 174 2016 4,342 4,275 4,266 3,975 701 2017 10,882 10,346 9,603 2,204 2018 13,609 13,499 5,178 2019 22,927 17,454 Total $ 97,888 $ 25,711 Workers' Compensation Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Unaudited - Supplementary Information) ($ in thousands) 2010 $ 3,184 $ 8,170 $ 12,270 $ 13,108 $ 13,108 $ 13,108 $ 13,108 $ 13,108 $ 13,108 $ 13,108 2011 5,004 11,175 16,861 16,861 16,861 16,861 16,861 16,861 16,861 2012 2,359 12,213 12,213 12,213 12,213 12,213 12,213 12,213 2013 4,751 4,751 4,751 4,751 4,751 4,751 4,751 2014 — — — — — — 2015 28 251 564 688 777 2016 613 1,920 2,782 3,274 2017 2,028 5,356 7,399 2018 4,213 8,321 2019 5,473 Total 72,177 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Workers' Compensation) $ 25,711 |
Schedule of Net Incurred and Paid Claims Development | The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated balance sheet is as follows: December 31, 2019 ($ in thousands) Net outstanding liabilities Health $ 18,063 Multiline 148,768 General Liability 12,349 Motor Casualty 105,172 Motor Property 26,074 Other 19,809 Property 41,141 Professional Liability 41,743 Workers' Compensation 25,711 Liabilities for claims and claims adjustment expenses, net of reinsurance 438,830 Add: Reinsurance recoverable on unpaid claims 27,531 Add: Unallocated claims adjustment expenses 4,227 Total gross liabilities for unpaid claims and claim adjustment expense $ 470,588 |
Schedule of Historical Annual Percentage Payout of Net Incurred Claims | The average historical annual percentage payout of net incurred claims (excluding health) as of December 31, 2019 is as follows: Years 1 2 3 4 5 6 7 8 9 10 (Unaudited - Supplementary Information) Multiline 10.2 % 19.0 % 18.8 % 16.0 % 13.3 % 22.7 % — % — % — % — % General Liability 4.7 % 13.5 % 12.9 % 11.4 % 18.8 % 29.5 % 6.1 % 2.7 % 0.4 % — % Motor Casualty 45.7 % 33.1 % 8.8 % 5.1 % 3.5 % 1.8 % 1.3 % 0.7 % — % — % Motor Property 53.1 % 39.8 % 5.3 % 0.6 % 1.0 % 0.2 % — % — % — % — % Other 21.1 % 39.8 % 19.1 % 9.0 % 2.8 % 5.9 % 2.3 % — % — % — % Property 51.0 % 32.9 % 7.0 % 2.9 % 2.7 % 0.9 % 2.2 % 0.3 % 0.1 % — % Professional Liability 5.3 % 19.4 % 28.7 % 24.0 % 14.0 % 6.2 % 2.3 % 0.1 % — % — % Workers' Compensation 27.9 % 41.6 % 23.0 % 6.1 % 0.9 % 0.5 % — % — % — % — % |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of voting Ordinary Shares Issued and Outstanding | The following table is a summary of voting ordinary shares issued and outstanding: 2019 2018 2017 Class A Class B Class A Class B Class A Class B Balance – beginning of year 30,130,214 6,254,715 31,104,830 6,254,715 31,111,432 6,254,895 Issue of ordinary shares, net of forfeitures 609,181 — 205,384 — 129,530 — Repurchase of ordinary shares — — (1,180,000 ) — (136,312 ) — Class B shares converted to Class A shares — — — — 180 (180 ) Balance – end of year 30,739,395 6,254,715 30,130,214 6,254,715 31,104,830 6,254,715 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Number of Weighted Balance at December 31, 2017 22,798 $ 23.50 Granted 28,301 15.90 Vested (4,053 ) 32.21 Forfeited (648 ) 21.65 Balance at December 31, 2018 46,398 18.13 Granted 48,535 10.84 Vested (7,186 ) 21.56 Forfeited (24,165 ) 13.96 Balance at December 31, 2019 63,582 $ 13.76 The following table summarizes the activity for unvested outstanding restricted share awards during the years ended December 31, 2019 and 2018 : Number of Weighted Balance at December 31, 2017 331,510 $ 23.45 Granted 245,975 15.78 Vested (100,384 ) 27.74 Forfeited (44,644 ) 18.77 Balance at December 31, 2018 432,457 18.58 Granted 639,497 10.69 Vested (161,365 ) 19.44 Forfeited (37,502 ) 14.12 Balance at December 31, 2019 873,087 $ 12.83 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | For the options granted in 2017, the Company applied the following weighted average assumptions to the options pricing model: 2017 Risk free rate 2.32 % Estimated volatility 31.4 % Expected term (in years) 10 Dividend yield — % Forfeiture rate — % |
Schedule of Share-based Compensation, Stock Options, Activity | Employee and director stock option activity during the years ended December 31, 2019, 2018 and 2017 was as follows: Number of options outstanding Weighted average exercise price Weighted average grant date fair value Intrinsic value ($ in millions) Weighted average remaining contractual term Balance at December 31, 2016 543,377 $ 25.40 $ 10.17 $ 0.5 4.7 years Granted 522,250 21.25 9.63 Exercised (50,000 ) 19.60 10.18 0.1 Balance at December 31, 2017 1,015,627 23.55 9.89 — 6.9 years Expired (80,000 ) 29.39 8.69 Balance at December 31, 2018 935,627 23.05 10.00 — 6.4 years Expired (60,000 ) 28.44 6.25 Balance at December 31, 2019 875,627 $ 22.68 $ 10.25 $ — 5.8 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block] | The following table summarizes information about options exercisable for the periods indicated: December 31, 2019 December 31, 2018 December 31, 2017 Number of options exercisable 555,627 535,627 535,627 Weighted average exercise price $ 23.54 $ 24.43 $ 25.66 Weighted average remaining contractual term 4.9 4.9 4.6 Intrinsic value ($ in millions) $ — $ — $ — |
NET INVESTMENT INCOME (LOSS) (T
NET INVESTMENT INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Investment Income [Abstract] | |
Schedule of Net Investment Income (Loss) | A summary of net investment income (loss) for the years ended December 31, 2019, 2018 and 2017 is as follows: 2019 2018 2017 ($ in thousands) Realized gains (losses) $ (14,150 ) $ (236,887 ) $ 87,618 Change in unrealized gains and losses 8,380 (32,597 ) (41,444 ) Investment related foreign exchange gains (losses) 20 938 (7,653 ) Interest and dividend income, net of withholding taxes 16,059 35,468 25,510 Interest, dividend and other expenses (4,798 ) (17,987 ) (23,937 ) Income (loss) from equity method investment 700 (247 ) — Investment advisor compensation on joint venture — (11,221 ) (19,863 ) Net investment related income (loss) 6,211 (262,533 ) 20,231 Income (loss) from investments in related party investment fund 46,056 (60,573 ) — Total net investment related income (loss) $ 52,267 $ (323,106 ) $ 20,231 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table sets forth our current and deferred income tax benefit (expense) on a consolidated basis for the years ended December 31, 2019, 2018 and 2017 : 2019 2018 2017 ($ in thousands) Current tax (expense) benefit $ (43 ) $ 1,840 $ 465 Deferred tax (expense) benefit (8 ) (4 ) (14 ) Increase in deferred tax valuation allowance (432 ) (2,168 ) — Income tax (expense) benefit $ (483 ) $ (332 ) $ 451 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table is a reconciliation of the beginning and ending carrying amounts of redeemable non-controlling interest in related party, non-controlling interest in related party and total non-controlling interest in related party for the years ended December 31, 2019, 2018 and 2017 : Redeemable non-controlling interest in related party joint venture Non-controlling interest in related party joint venture Total non-controlling interest in related party joint venture Year ended December 31 Year ended December 31 Year ended December 31 2019 2018 2017 2019 2018 2017 2019 2018 2017 Opening balance $ 1,692 $ 7,169 $ 5,884 — $ 485 $ 12,933 $ 11,561 — $ 2,177 $ 20,102 $ 17,445 Income (loss) attributed to non-controlling interest — (2,680 ) 201 — — (1,595 ) 378 — — (4,275 ) 579 Net contribution into (withdrawal from) non-controlling interest (1,692 ) (2,797 ) 1,084 — (485 ) (10,853 ) 994 — (2,177 ) (13,650 ) 2,078 Ending balance $ — $ 1,692 $ 7,169 $ — $ 485 $ 12,933 $ — $ 2,177 $ 20,102 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | At December 31, 2019 , the Company had one letter of credit facility, which automatically renews each year unless terminated by either party in accordance with the applicable required notice period: Facility Termination Date Notice period required for termination ($ in thousands) Citibank Europe plc 400,000 October 11, 2020 120 days prior to termination date |
Schedule of Contractual Obligation, Fiscal Year Maturity | The following is a schedule of future minimum payments required under the above commitments: 2020 2021 2022 2023 2024 Thereafter Total ($ in thousands) Operating lease obligations $ 679 $ 62 $ 62 $ — $ — $ — $ 803 Interest and convertible note payable 4,000 4,000 4,000 104,000 — — 116,000 Loan facility 350 — — — — — 350 Advisory fee 2,000 — — — — — 2,000 $ 7,029 $ 4,062 $ 4,062 $ 104,000 $ — $ — $ 119,153 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Gross Premiums Written by Brokers Greater than 10% of Premiums | The following table sets forth the premiums generated through our largest brokers and their subsidiaries and affiliates: Year ended December 31 2019 2018 2017 ($ in thousands) Guy Carpenter (Marsh) $ 297,150 56.7 % $ 376,696 66.4 % $ 366,390 52.9 % Trean Re 85,323 16.3 45,446 8.0 54,799 7.9 Aon Benfield 41,071 7.8 70,554 12.4 125,320 18.1 Total of largest brokers $ 423,544 80.8 % $ 492,696 86.8 % $ 546,509 78.9 % All others 100,433 19.2 74,835 13.2 146,142 21.1 Total $ 523,977 100.0 % $ 567,531 100.0 % $ 692,651 100.0 % |
Schedule of Gross Premiums Written by Line of Business | The following tables provide a breakdown of the Company’s gross premiums written by line and class of business, and by geographic area of risks insured for the periods indicated: Gross Premiums Written by Line of Business Year ended December 31 2019 2018 2017 ($ in thousands) Property Commercial $ 14,165 2.7 % $ 10,487 1.8 % $ 12,256 1.8 % Motor 59,402 11.3 76,425 13.5 71,188 10.2 Personal 12,390 2.4 14,118 2.5 49,491 7.2 Total Property 85,957 16.4 101,030 17.8 132,935 19.2 Casualty General Liability 2,401 0.5 1,429 0.3 4,753 0.7 Motor Liability 233,591 44.6 291,690 51.4 281,551 40.6 Professional Liability (1) (448 ) (0.1 ) 3,068 0.5 8,703 1.3 Workers' Compensation 50,369 9.6 24,101 4.3 24,803 3.6 Multi-line 76,461 14.6 57,497 10.1 123,340 17.8 Total Casualty 362,374 69.2 377,785 66.6 443,150 64.0 Other Accident & Health 39,175 7.5 69,605 12.2 66,800 9.6 Financial 23,087 4.4 16,611 2.9 48,380 7.0 Marine 160 — 394 0.1 — — Other Specialty 13,224 2.5 2,106 0.4 1,386 0.2 Total Other 75,646 14.4 88,716 15.6 116,566 16.8 $ 523,977 100.0 % $ 567,531 100.0 % $ 692,651 100.0 % (1) The negative balance represents the reversal of premiums due to premium adjustments, termination of contracts or premium returned upon novation or commutation of contracts. |
Schedule of Gross Premiums Written by Geographic Area of Risks Insured | Gross Premiums Written by Geographic Area of Risks Insured Year ended December 31 2019 2018 2017 ($ in thousands) U.S. and Caribbean $ 435,458 83.1 % $ 507,705 89.5 % $ 606,510 87.6 % Worldwide (1) 84,728 16.2 59,366 10.5 86,714 12.5 Europe (2) (13 ) — 506 — (612 ) (0.1 ) Asia (2) 3,804 0.7 (46 ) — 39 — $ 523,977 100.0 % $ 567,531 100.0 % $ 692,651 100.0 % (1) “Worldwide” is composed of contracts that reinsure risks in more than one geographic area and may include risks in the U.S. (2) The negative balances represent the reversal of premiums due to premium adjustments, termination of contracts or premium returned upon novation or commutation of contracts. |
QUARTERLY FINANCIAL RESULTS (_2
QUARTERLY FINANCIAL RESULTS (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table presents the quarterly financial results for each of the quarters ended during 2019 : 2019 Quarter ended ($ in thousands, except per share amounts) Revenues Gross premiums written $ 162,560 $ 152,340 $ 110,607 $ 98,470 Gross premiums ceded (21,401 ) (23,141 ) (4,035 ) (90 ) Net premiums written 141,159 129,199 106,572 98,380 Change in net unearned premium reserves (15,797 ) (8,758 ) 22,582 10,243 Net premiums earned 125,362 120,441 129,154 108,623 Income (loss) from investment in related party investment fund 30,756 14,405 6,609 (5,714 ) Net investment income (loss) 1,567 4,386 3,312 (3,054 ) Other income (expense), net 1,069 1,117 (887 ) 1,007 Total revenues 158,754 140,349 138,188 100,862 Expenses Net loss and loss adjustment expenses incurred 122,865 78,476 92,962 94,184 Acquisition costs 21,526 37,172 30,962 27,424 General and administrative expenses 6,840 7,919 7,725 7,338 Interest expense 1,544 1,562 1,578 1,579 Total expenses 152,775 125,129 133,227 130,525 Income (loss) before income tax expense 5,979 15,220 4,961 (29,663 ) Income tax (expense) benefit (73 ) 94 179 (683 ) Net income (loss) attributable to Greenlight Capital Re, Ltd. $ 5,906 $ 15,314 $ 5,140 $ (30,346 ) Earnings (loss) per share Basic $ 0.16 $ 0.42 $ 0.14 $ (0.84 ) Diluted $ 0.16 $ 0.42 $ 0.14 $ (0.84 ) Weighted average number of ordinary shares used in the determination of earnings and loss per share Basic 35,972,665 36,100,665 36,841,623 36,121,023 Diluted 36,364,358 36,829,963 36,921,490 36,121,023 The following table presents the quarterly financial results for each of the quarters ended during 2018 : 2018 Quarter ended ($ in thousands) Revenues Gross premiums written $ 175,125 $ 142,109 $ 115,154 $ 135,143 Gross premiums ceded (29,843 ) (27,237 ) (15,456 ) (30,252 ) Net premiums written 145,282 114,872 99,698 104,891 Change in net unearned premium reserves 562 13,944 14,406 14,708 Net premiums earned 145,844 128,816 114,104 119,599 Income (loss) from investment in related party investment fund — — (10,025 ) (50,548 ) Net investment income (loss) (145,216 ) (40,656 ) (70,851 ) (5,810 ) Other income (expense), net (487 ) (76 ) (683 ) (982 ) Total revenues 141 88,084 32,545 62,259 Expenses Net loss and loss adjustment expenses incurred 95,824 84,815 86,780 96,454 Acquisition costs 44,209 34,623 28,331 38,312 General and administrative expenses 5,956 6,958 7,136 5,123 Interest expense — — 927 1,578 Total expenses 145,989 126,396 123,174 141,467 Income (loss) before income tax (145,848 ) (38,312 ) (90,629 ) (79,208 ) Income tax (expense) benefit 770 323 355 (1,780 ) Net income (loss) (145,078 ) (37,989 ) (90,274 ) (80,988 ) Loss (income) attributable to non-controlling interest in related party joint venture 2,326 621 1,159 169 Net income (loss) attributable to Greenlight Capital Re, Ltd. $ (142,752 ) $ (37,368 ) $ (89,115 ) $ (80,819 ) Earnings (loss) per share Basic $ (3.85 ) $ (1.01 ) $ (2.48 ) $ (2.25 ) Diluted $ (3.85 ) $ (1.01 ) $ (2.48 ) $ (2.25 ) Weighted average number of ordinary shares used in the determination of earnings and loss per share Basic 37,087,169 36,952,472 35,952,472 35,952,472 Diluted 37,087,169 36,952,472 35,952,472 35,952,472 |
SCHEDULE II CONDENSED FINANCI_2
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | GREENLIGHT CAPITAL RE, LTD. CONDENSED FINANCIAL INFORMATION OF REGISTRANT CONDENSED BALANCE SHEETS — PARENT COMPANY ONLY (expressed in thousands of U.S. dollars) December 31, 2019 December 31, 2018 ($ in thousands) Assets Other investments $ 1,000 $ 800 Cash and cash equivalents 2 3 Investment in subsidiaries 557,835 553,323 Notes receivable (net of valuation allowance) 10,469 21,965 Due from subsidiaries 8,200 — Total assets $ 577,506 $ 576,091 Liabilities and equity Liabilities Convertible senior notes payable $ 93,514 $ 91,185 Other liabilities 1,611 — Due to subsidiaries 5,198 7,619 Total liabilities 100,323 98,804 Shareholders’ equity Share capital 3,699 3,638 Additional paid-in capital 503,547 499,726 Retained earnings (deficit) (30,063 ) (26,077 ) Total shareholders’ equity 477,183 477,287 Total liabilities and equity $ 577,506 $ 576,091 |
Schedule of Condensed Income Statement | GREENLIGHT CAPITAL RE, LTD. CONDENSED FINANCIAL INFORMATION OF REGISTRANT CONDENSED STATEMENT OF OPERATIONS — PARENT COMPANY ONLY (expressed in thousands of U.S. dollars) Year ended December 31 2019 2018 2017 ($ in thousands) Revenue Net investment income $ 522 $ 1,574 $ 34,487 Total revenues 522 1,574 34,487 Expenses General and administrative expenses 6,496 4,445 4,691 Interest expense 6,263 2,505 — Total expenses 12,759 6,950 4,691 Net income (loss) before equity in earnings of consolidated subsidiaries (12,237 ) (5,376 ) 29,796 Equity in earnings of consolidated subsidiaries 8,251 (344,678 ) (74,748 ) Consolidated net income (loss) $ (3,986 ) $ (350,054 ) $ (44,952 ) |
Schedule of Condensed Cash Flow Statement | GREENLIGHT CAPITAL RE, LTD. CONDENSED FINANCIAL INFORMATION OF REGISTRANT CONDENSED STATEMENTS OF CASH FLOWS — PARENT COMPANY ONLY (expressed in thousands of U.S. dollars) Year Ended December 31 2019 2018 2017 ($ in thousands) Cash provided by (used in) operating activities Net income (loss) (3,986 ) (350,054 ) (44,952 ) Adjustments to reconcile net income or loss to net cash provided by (used in) operating activities Equity in earnings of consolidated subsidiaries (8,251 ) 344,678 74,748 Net change in unrealized gains and losses on investments (200 ) — — Share-based compensation expense 3,686 4,382 4,691 Amortization and interest expense 2,329 2,505 — Net change in Due from subsidiaries (8,200 ) 876 (876 ) Other liabilities 1,611 — — Due from subsidiaries (2,421 ) 7,619 (29,023 ) Net cash provided by (used in) operating activities (15,432 ) 10,006 4,588 Investing activities Purchase of investments — (800 ) — Change in note receivable 11,496 (6,610 ) (191 ) Contributed surplus to subsidiaries, net 3,935 (82,750 ) (1,500 ) Net cash provided by (used in) investing activities 15,431 (90,160 ) (1,691 ) Financing activities Net proceeds from issuance of convertible senior notes payable, net of costs — 96,576 — Repurchase of Class A ordinary shares — (16,503 ) (2,819 ) Net cash provided by (used in) financing activities — 80,073 (2,819 ) Net increase (decrease) in cash and cash equivalents (1 ) (81 ) 78 Cash and cash equivalents at beginning of the year 3 84 6 Cash and cash equivalents at end of the year 2 3 84 Supplementary information Non cash consideration from (to) subsidiaries, net (196 ) (242 ) (162 ) |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 25,813 | $ 18,215 | ||
Restricted cash and cash equivalents | 742,093 | 685,016 | ||
Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows | $ 767,906 | $ 703,231 | $ 1,531,098 | $ 1,242,509 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Accounting Policies [Abstract] | ||||
Financing Receivable, Allowance for Credit Loss | $ 15,000,000 | $ 9,012,000 | $ 9,012,000 | $ 9,012,000 |
Accounting Policies [Line Items] | ||||
Profit commission reserves | 1,200,000 | 8,500,000 | ||
Profit commission expense, net | 6,700,000 | 18,200,000 | 2,000,000 | |
Net increase (decrease) in provision | 5,988,000 | 0 | $ 0 | |
Amount of notes receivable placed on non-accrual status | 0 | 9,800,000 | ||
Accrued interest on notes receivable | 100,000 | 200,000 | ||
Deposit assets | 5,200,000 | 11,900,000 | ||
Deposit liabilities | $ 56,900,000 | $ 52,900,000 | ||
Number of operating segments | segment | 1 | |||
Operating lease, right-of-use asset | $ 300,000 | |||
Operating lease liability | $ 300,000 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES Provision for Valuation Allowance (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 9,012,000 | $ 9,012,000 | $ 9,012,000 |
Net increase (decrease) in provision | 5,988,000 | 0 | 0 |
Balance at end of period | $ 15,000,000 | $ 9,012,000 | $ 9,012,000 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES Interest Income and Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Deposit interest income | $ 3,316 | $ 1,224 | $ 205 |
Deposit interest expense | 543 | 1,510 | 555 |
Deposit interest income (expense), net | $ 2,773 | $ (286) | $ (350) |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES Share-Based Compensation (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Forfeiture rate | 0.00% | |
Expiration period after the grant date | 10 years | |
Dividend yield | 0.00% | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cliff vesting period after date of issuance | 3 years | |
Stock purchase options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period after the grant date | 10 years | |
Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cliff vesting period after date of issuance | 1 year | |
Director | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cliff vesting period after date of issuance | 12 months |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES Earnings Per Share Reconciliation (Details) - shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Weighted average shares outstanding - basic | 36,121,023 | 36,841,623 | 36,100,665 | 35,972,665 | 35,952,472 | 35,952,472 | 36,952,472 | 37,087,169 | 36,079,419 | 35,951,659 | 37,002,260 |
Effect of dilutive employee and director share-based awards | 0 | 0 | 0 | ||||||||
Weighted average shares outstanding - diluted | 36,121,023 | 36,921,490 | 36,829,963 | 36,364,358 | 35,952,472 | 35,952,472 | 36,952,472 | 37,087,169 | 36,079,419 | 35,951,659 | 37,002,260 |
Anti-dilutive stock options outstanding | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Anti-dilutive outstanding | 875,627 | 935,627 | 358,741 | ||||||||
Participating securities excluded from calculation of loss per share | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Anti-dilutive outstanding | 936,669 | 432,457 | 331,510 |
INVESTMENT IN RELATED PARTY I_3
INVESTMENT IN RELATED PARTY INVESTMENT FUND Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Equity method investments, fair value | $ 5,003 | $ 5,003 | $ 5,003 | ||||||||||
GLRE Limited Partners’ share of net income (loss) | $ (5,714) | $ 6,609 | $ 14,405 | $ 30,756 | (50,548) | $ (10,025) | $ 0 | $ 0 | $ 46,056 | (60,573) | $ 0 | ||
Transfer from Investments | $ 36,700 | ||||||||||||
SILP | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Equity method investments, fair value | $ 240,100 | $ 235,600 | $ 235,600 | $ 240,100 | $ 235,600 | ||||||||
Equity method investment, ownership percentage | 50.30% | 49.30% | 49.30% | 50.30% | 49.30% | ||||||||
GLRE Limited Partners | SILP | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Equity method investments, fair value | $ 240,100 | $ 235,600 | $ 235,600 | $ 240,100 | $ 235,600 | ||||||||
Equity method investment, ownership percentage | 81.00% | 84.90% | 84.90% | 81.00% | 84.90% | ||||||||
General Partner | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Equity method investment, ownership percentage | 19.00% | 15.10% | 15.10% | 19.00% | 15.10% | ||||||||
Limited Partnership Agreement | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Asset redemption notice to general partner | 3 days | ||||||||||||
Solasglas Investment LP (SILP) | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
GLRE Limited Partners’ share of net income (loss) | $ (60,573) | $ 46,056 | |||||||||||
Management fee | $ 3,100 | $ 3,100 | $ 4,893 | $ 3,100 |
INVESTMENT IN RELATED PARTY I_4
INVESTMENT IN RELATED PARTY INVESTMENT FUND - Summarized Statements of Assets, Liabilities and Net Assets of SILP (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Liabilities | ||
GLRE Limited Partners’ share of Net Assets | $ 240,056 | $ 235,612 |
Solasglas Investment LP (SILP) | ||
Assets | ||
Investments, at fair value | 162,928 | 401,318 |
Derivative contracts, at fair value | 6,324 | 63,143 |
Due from brokers | 68,060 | 77,821 |
Cash and cash equivalents | 111,046 | 13,200 |
Interest and dividends receivable | 47 | 2,358 |
Total assets | 348,405 | 557,840 |
Liabilities | ||
Investments sold, not yet purchased, at fair value | (47,834) | (198,728) |
Notes Payable | 0 | (30,000) |
Derivative contracts, at fair value | (2,054) | (26,344) |
Due to brokers | (1,180) | (23,951) |
Interest and dividends payable | (828) | (1,238) |
Other liabilities | (101) | (169) |
Total liabilities | (51,997) | (280,430) |
Net Assets | 296,408 | 277,410 |
GLRE Limited Partners’ share of Net Assets | $ 240,056 | $ 235,612 |
INVESTMENT IN RELATED PARTY I_5
INVESTMENT IN RELATED PARTY INVESTMENT FUND - Summarized Income Statements of SILP (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Realized and change in unrealized gains (losses) | |||||||||||||
GLRE Limited Partners’ share of net income (loss) | $ (5,714,000) | $ 6,609,000 | $ 14,405,000 | $ 30,756,000 | $ (50,548,000) | $ (10,025,000) | $ 0 | $ 0 | $ 46,056,000 | $ (60,573,000) | $ 0 | ||
Board of Directors Chairman | Investment Advisory Agreement | |||||||||||||
Realized and change in unrealized gains (losses) | |||||||||||||
Incentive fee expense | $ 0 | 4,981,000 | 0 | ||||||||||
Solasglas Investment LP (SILP) | |||||||||||||
Investment income | |||||||||||||
Dividend income (net of withholding taxes) | $ 2,160,000 | 3,179,000 | |||||||||||
Interest income | 1,868,000 | 3,884,000 | |||||||||||
Total Investment income | 4,028,000 | 7,063,000 | |||||||||||
Expenses | |||||||||||||
Management fee | $ 3,100,000 | 3,100,000 | 4,893,000 | $ 3,100,000 | |||||||||
Interest | 2,627,000 | 2,408,000 | |||||||||||
Dividends | 1,608,000 | 1,670,000 | |||||||||||
Professional fees and other | 483,000 | 1,141,000 | |||||||||||
Total expenses | 7,818,000 | 10,112,000 | |||||||||||
Net investment income (loss) | (3,790,000) | (3,049,000) | |||||||||||
Realized and change in unrealized gains (losses) | |||||||||||||
Net realized gain (loss) | (80,996,000) | 34,539,000 | |||||||||||
Net change in unrealized appreciation (depreciation) | 14,789,000 | 28,515,000 | |||||||||||
Net gain (loss) on investment transactions | (66,207,000) | 63,054,000 | |||||||||||
Net income (loss) | (69,997,000) | 60,005,000 | |||||||||||
GLRE Limited Partners’ share of net income (loss) | $ (60,573,000) | $ 46,056,000 |
FINANCIAL INSTRUMENTS Net Inves
FINANCIAL INSTRUMENTS Net Investment Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gross realized gains | $ 0 | $ 303,674 | $ 267,904 |
Gross realized losses | (14,150) | (540,561) | (180,286) |
Net realized gains (losses) | (14,150) | (236,887) | 87,618 |
Net Investment Income (Loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in unrealized gains and losses | $ 8,380 | $ (32,597) | $ (41,444) |
FINANCIAL INSTRUMENTS Schedule
FINANCIAL INSTRUMENTS Schedule of Investments Included in Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | $ 50,521 | |
Unrealized gains | 1,015 | |
Unrealized losses | (14,628) | |
Fair value | $ 0 | 36,908 |
Equities – listed | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 50,521 | |
Unrealized gains | 1,015 | |
Unrealized losses | (14,628) | |
Fair value | $ 36,908 |
FINANCIAL INSTRUMENTS Schedul_2
FINANCIAL INSTRUMENTS Schedule of Other Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value | $ 16,384 | $ 11,408 |
Private investments and unlisted equities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 10,420 | 6,672 |
Unrealized gains | 265 | 0 |
Unrealized losses | (4) | (267) |
Fair value | 10,681 | 6,405 |
Investment accounted for under the equity method | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value | $ 5,703 | $ 5,003 |
FINANCIAL INSTRUMENTS Narrative
FINANCIAL INSTRUMENTS Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Fair value | $ 16,384 | $ 11,408 | |
Equity in earnings of consolidated subsidiaries | $ 700 | (247) | $ 0 |
AccuRisk Holdings LLC | Variable Interest Entity, Not Primary Beneficiary | |||
Derivative [Line Items] | |||
Interest held | 58.00% | ||
Interest on credit facility | $ 6,000 | ||
Equity in earnings of consolidated subsidiaries | 700 | (200) | |
Private and unlisted equity securities | |||
Derivative [Line Items] | |||
Fair value | 10,681 | $ 6,405 | |
Unrealized gains on investments | $ 200 |
FINANCIAL INSTRUMENTS Schedul_3
FINANCIAL INSTRUMENTS Schedule of Investments Categorized by the Level of Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 37,572 | |
Investment in related party investment fund measured at net asset value | 235,612 | |
Equities without readily determinable fair values for which measurement alternative is applied | 5,741 | |
Investment accounted for under the equity method | 5,003 | |
Total investments | $ 256,440 | 283,928 |
Listed equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 36,908 | |
Private and unlisted equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 664 | |
Quoted prices in active markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 36,908 | |
Quoted prices in active markets (Level 1) | Listed equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 36,908 | |
Quoted prices in active markets (Level 1) | Private and unlisted equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Significant other observable inputs (Level 2) | Listed equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Significant other observable inputs (Level 2) | Private and unlisted equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 664 | |
Significant unobservable inputs (Level 3) | Listed equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Significant unobservable inputs (Level 3) | Private and unlisted equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 664 |
FINANCIAL INSTRUMENTS Level 3 R
FINANCIAL INSTRUMENTS Level 3 Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 664 | $ 6,988 |
Sales | (664) | (2,806) |
Total realized and unrealized gains (losses) and amortization included in earnings, net | 0 | (268) |
Transfers out of Level 3 | 0 | (3,250) |
Ending balance | 0 | 664 |
Debt instruments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | 880 |
Sales | 0 | (916) |
Total realized and unrealized gains (losses) and amortization included in earnings, net | 0 | 36 |
Transfers out of Level 3 | 0 | 0 |
Ending balance | 0 | 0 |
Private and unlisted equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 664 | 6,108 |
Sales | (664) | (1,890) |
Total realized and unrealized gains (losses) and amortization included in earnings, net | 0 | (304) |
Transfers out of Level 3 | 0 | (3,250) |
Ending balance | $ 0 | $ 664 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | $ 25,813 | $ 18,215 |
Cash at banks | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | 25,813 | 7,295 |
Cash held with brokers | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | $ 0 | $ 10,920 |
Restricted Cash and Cash Equi_3
Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Line Items] | ||
Total restricted cash and cash equivalents | $ 742,093 | $ 685,016 |
Cash held as collateral in trust accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Total restricted cash and cash equivalents | 528,686 | 463,361 |
Cash collateral relating to letters of credit issued | ||
Cash and Cash Equivalents [Line Items] | ||
Total restricted cash and cash equivalents | $ 213,407 | $ 221,655 |
LOSS AND LOSS ADJUSTMENT EXPE_3
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES Change in Outstanding Loss and Loss Adjustment Expense Reserve For Health Claims (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Loss and loss adjustment expenses recoverable | $ 27,531,000 | $ 43,705,000 | |||||
Case reserves | 217,834,000 | 211,910,000 | |||||
IBNR | 252,754,000 | 270,752,000 | |||||
Total gross liabilities for unpaid claims and claim adjustment expense | $ 470,588,000 | $ 482,662,000 | $ 464,380,000 | 470,588,000 | 482,662,000 | $ 464,380,000 | $ 306,641,000 |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||||
Gross balance at January 1 | 482,662,000 | 464,380,000 | 306,641,000 | ||||
Add: Reinsurance recoverable on unpaid claims | (43,705,000) | (29,459,000) | (2,704,000) | ||||
Net balance at January 1 | 438,957,000 | 434,921,000 | 303,937,000 | ||||
Incurred losses related to: | |||||||
Current year | 357,237,000 | 363,871,000 | 466,247,000 | ||||
Prior years | 31,250,000 | 2,200 | 36,157,000 | ||||
Total incurred | 388,487,000 | 363,873,000 | 502,404,000 | ||||
Paid losses related to: | |||||||
Current year | (167,508,000) | (160,975,000) | (220,298,000) | ||||
Prior years | (217,998,000) | (197,097,000) | (154,183,000) | ||||
Total paid | (385,506,000) | (358,072,000) | (374,481,000) | ||||
Foreign currency revaluation | 1,119,000 | (1,765,000) | 3,061,000 | ||||
Net balance at December 31 | 443,057,000 | 438,957,000 | 434,921,000 | ||||
Loss and loss adjustment expenses recoverable | 43,705,000 | 29,459,000 | 2,704,000 | ||||
Gross balance at December 31 | 470,588,000 | 482,662,000 | 464,380,000 | ||||
Health | |||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Total gross liabilities for unpaid claims and claim adjustment expense | 18,063,000 | 24,502,000 | 22,181,000 | 18,063,000 | 24,502,000 | 22,181,000 | 18,993,000 |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||||
Gross balance at January 1 | 24,502,000 | 22,181,000 | 18,993,000 | ||||
Add: Reinsurance recoverable on unpaid claims | 0 | 0 | 0 | 0 | |||
Net balance at January 1 | 24,502,000 | 22,181,000 | 18,993,000 | ||||
Incurred losses related to: | |||||||
Current year | 56,868,000 | 44,539,000 | |||||
Prior years | 1,508,000 | 3,739,000 | |||||
Total incurred | 37,305,000 | 58,376,000 | 48,278,000 | ||||
Paid losses related to: | |||||||
Current year | (17,410,000) | (34,696,000) | (23,814,000) | ||||
Prior years | (26,334,000) | (21,359,000) | (21,276,000) | ||||
Total paid | (43,744,000) | (56,055,000) | (45,090,000) | ||||
Foreign currency revaluation | 0 | 0 | 0 | ||||
Net balance at December 31 | 18,063,000 | 24,502,000 | 22,181,000 | ||||
Loss and loss adjustment expenses recoverable | $ 0 | $ 0 | $ 0 | $ 0 | |||
Gross balance at December 31 | $ 18,063,000 | $ 24,502,000 | $ 22,181,000 |
LOSS AND LOSS ADJUSTMENT EXPE_4
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
prior year loss and LAE reserves | $ 31,250,000 | $ 2,200 | $ 36,157,000 |
Number of operating segments | segment | 1 | ||
Private Passenger Automobile Business | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Liability for unpaid claims and claims adjustment expense, period increase (decrease) | $ (39,800,000) | (11,900,000) | (4,300,000) |
Professional Liability | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Liability for unpaid claims and claims adjustment expense, period increase (decrease) | (3,600,000) | (3,800,000) | (10,700,000) |
Homeowners' Property Contracts | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Liability for unpaid claims and claims adjustment expense, period increase (decrease) | $ 13,500,000 | 7,500,000 | (4,100,000) |
General Liability | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Liability for unpaid claims and claims adjustment expense, period increase (decrease) | (2,000,000) | ||
Surety Business | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Liability for unpaid claims and claims adjustment expense, period increase (decrease) | (1,800,000) | (2,200,000) | |
Hurricane | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Liability for unpaid claims and claims adjustment expense, period increase (decrease) | 5,900,000 | ||
Reinstatement Premium Previously Recorded | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Liability for unpaid claims and claims adjustment expense, period increase (decrease) | (1,600,000) | ||
Mortgage Insurance | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Liability for unpaid claims and claims adjustment expense, period increase (decrease) | $ 4,100,000 | ||
Accident & Health | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Liability for unpaid claims and claims adjustment expense, period increase (decrease) | $ (3,700,000) |
LOSS AND LOSS ADJUSTMENT EXPE_5
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES Loss development tables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Claims Development [Line Items] | ||||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance (Workers' Compensation) | $ 438,830 | |||||||||
Health | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 373,122 | |||||||||
Total IBNR plus expected development on reported claims | 18,063 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 355,059 | |||||||||
All outstanding liabilities before 2010, net of reinsurance | 0 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance (Workers' Compensation) | 18,063 | |||||||||
Multiline | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 273,639 | |||||||||
Total IBNR plus expected development on reported claims | 148,768 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 124,871 | |||||||||
All outstanding liabilities before 2010, net of reinsurance | 0 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance (Workers' Compensation) | 148,768 | |||||||||
General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 163,866 | |||||||||
Total IBNR plus expected development on reported claims | 12,346 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 151,520 | |||||||||
All outstanding liabilities before 2010, net of reinsurance | 3 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance (Workers' Compensation) | 12,349 | |||||||||
Motor Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 1,407,117 | |||||||||
Total IBNR plus expected development on reported claims | 105,172 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 1,301,945 | |||||||||
All outstanding liabilities before 2010, net of reinsurance | 0 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance (Workers' Compensation) | 105,172 | |||||||||
Motor Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 287,087 | |||||||||
Total IBNR plus expected development on reported claims | 26,074 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 261,013 | |||||||||
All outstanding liabilities before 2010, net of reinsurance | 0 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance (Workers' Compensation) | 26,074 | |||||||||
Other Specialty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 66,462 | |||||||||
Total IBNR plus expected development on reported claims | 19,809 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 46,653 | |||||||||
All outstanding liabilities before 2010, net of reinsurance | 0 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance (Workers' Compensation) | 19,809 | |||||||||
Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 476,592 | |||||||||
Total IBNR plus expected development on reported claims | 41,141 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 435,451 | |||||||||
All outstanding liabilities before 2010, net of reinsurance | 0 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance (Workers' Compensation) | 41,141 | |||||||||
Professional Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 118,763 | |||||||||
Total IBNR plus expected development on reported claims | 39,623 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 79,140 | |||||||||
All outstanding liabilities before 2010, net of reinsurance | 2,120 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance (Workers' Compensation) | 41,743 | |||||||||
Workers' Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 97,888 | |||||||||
Total IBNR plus expected development on reported claims | 25,711 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 72,177 | |||||||||
All outstanding liabilities before 2010, net of reinsurance | 0 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance (Workers' Compensation) | 25,711 | |||||||||
2010 | Health | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 36,145 | $ 36,145 | $ 36,145 | $ 36,145 | $ 36,145 | $ 36,159 | $ 36,159 | $ 36,224 | $ 35,924 | $ 36,075 |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 36,145 | 36,145 | 36,145 | 36,145 | 36,145 | 36,159 | 36,159 | 36,224 | 35,795 | 17,826 |
2010 | Multiline | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
2010 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 28,251 | 28,251 | 28,251 | 28,251 | 25,946 | 21,664 | 19,649 | 17,484 | 14,327 | 12,111 |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 28,251 | 28,251 | 28,251 | 28,251 | 19,228 | 17,471 | 14,051 | 9,356 | 5,096 | 2,107 |
2010 | Motor Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 88,034 | 88,012 | 88,008 | 88,022 | 88,377 | 84,742 | 83,496 | 86,881 | 74,260 | 64,264 |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 88,034 | 88,012 | 88,008 | 88,008 | 82,266 | 79,089 | 70,356 | 60,630 | 44,889 | 23,413 |
2010 | Motor Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 667 | 667 | 667 | 667 | 662 | 662 | 684 | 671 | 656 | 560 |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 667 | 667 | 667 | 667 | 644 | 620 | 620 | 620 | 620 | 560 |
2010 | Other Specialty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 3,955 | 3,955 | 4,130 | 3,955 | 4,130 | 4,130 | 4,130 | 4,291 | 3,858 | 4,008 |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 3,955 | 3,955 | 3,955 | 3,955 | 3,477 | 3,406 | 3,130 | 3,123 | 1,593 | 864 |
2010 | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 53,506 | 53,495 | 53,574 | 53,723 | 52,507 | 52,263 | 51,483 | 51,698 | 41,983 | 39,106 |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 53,506 | 53,495 | 53,542 | 53,408 | 48,438 | 47,914 | 43,406 | 42,697 | 40,858 | 20,611 |
2010 | Professional Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 3,921 | 3,921 | 3,921 | 3,922 | 3,936 | 3,907 | 3,713 | 3,571 | 3,331 | 3,875 |
Total IBNR plus expected development on reported claims | 424 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 3,497 | 3,497 | 1,740 | 1,620 | 1,478 | 1,112 | 834 | 402 | 35 | 0 |
2010 | Workers' Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 13,108 | 13,108 | 13,108 | 13,108 | 13,108 | 13,108 | 13,108 | 12,426 | 11,736 | 11,181 |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 13,108 | 13,108 | 13,108 | 13,108 | 13,108 | 13,108 | 13,108 | 12,270 | 8,170 | $ 3,184 |
2011 | Health | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 35,566 | 35,566 | 35,595 | 35,595 | 35,595 | 35,800 | 35,821 | 36,212 | 36,140 | |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 35,566 | 35,566 | 35,595 | 35,595 | 35,595 | 35,800 | 35,814 | 35,542 | 26,979 | |
2011 | Multiline | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
2011 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 77,105 | 77,105 | 77,105 | 77,105 | 61,446 | 44,897 | 40,756 | 30,693 | 20,925 | |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 77,105 | 77,105 | 77,105 | 77,105 | 32,954 | 25,018 | 20,030 | 11,751 | 2,873 | |
2011 | Motor Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 70,478 | 70,495 | 70,495 | 70,435 | 70,880 | 62,921 | 57,342 | 57,498 | 53,035 | |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 70,478 | 70,433 | 70,433 | 70,433 | 65,018 | 58,244 | 49,569 | 36,462 | 19,082 | |
2011 | Motor Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 3,303 | 3,306 | 3,306 | 3,306 | 3,285 | 3,285 | 3,343 | 3,271 | 3,276 | |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 3,303 | 3,303 | 3,303 | 3,303 | 3,285 | 3,285 | 3,305 | 2,944 | 1,418 | |
2011 | Other Specialty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 7,468 | 7,468 | 7,468 | 7,468 | 7,470 | 7,473 | 7,525 | 8,099 | 7,360 | |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 7,468 | 7,468 | 7,468 | 7,468 | 7,468 | 7,468 | 7,513 | 7,547 | 1,162 | |
2011 | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 83,296 | 83,006 | 83,067 | 83,012 | 81,894 | 80,402 | 79,794 | 83,261 | 73,309 | |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 83,296 | 83,006 | 82,655 | 82,370 | 81,214 | 79,022 | 77,182 | 74,383 | 49,441 | |
2011 | Professional Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 8,023 | 8,196 | 8,196 | 7,950 | 8,121 | 8,064 | 7,367 | 6,910 | 6,043 | |
Total IBNR plus expected development on reported claims | 262 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 7,761 | 7,830 | 7,781 | 7,285 | 6,580 | 5,244 | 3,680 | 1,331 | 110 | |
2011 | Workers' Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 16,861 | 16,861 | 16,861 | 16,861 | 16,861 | 16,861 | 16,861 | 15,233 | 14,915 | |
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 16,861 | 16,861 | 16,861 | 16,861 | 16,861 | 16,861 | 16,861 | 11,175 | $ 5,004 | |
2012 | Health | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 22,658 | 22,658 | 22,671 | 22,671 | 22,681 | 22,780 | 23,088 | 24,712 | ||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 22,658 | 22,658 | 22,671 | 22,671 | 22,679 | 22,780 | 22,691 | 14,896 | ||
2012 | Multiline | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
2012 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 30,902 | 31,274 | 31,161 | 31,145 | 29,554 | 16,921 | 18,133 | 12,626 | ||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 30,902 | 30,891 | 30,687 | 30,667 | 15,836 | 13,142 | 9,926 | 1,750 | ||
2012 | Motor Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 131,302 | 131,302 | 131,302 | 131,305 | 131,202 | 131,896 | 131,196 | 132,284 | ||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 131,302 | 131,302 | 131,302 | 131,302 | 128,913 | 126,622 | 118,142 | 58,585 | ||
2012 | Motor Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 35,922 | 35,922 | 35,922 | 35,922 | 35,998 | 36,008 | 36,129 | 36,985 | ||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 35,922 | 35,922 | 35,922 | 35,922 | 35,903 | 35,854 | 34,588 | 16,902 | ||
2012 | Other Specialty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 3,777 | 3,782 | 3,755 | 3,759 | 3,773 | 3,756 | 3,591 | 4,017 | ||
Total IBNR plus expected development on reported claims | 42 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 3,735 | 3,735 | 3,688 | 3,684 | 3,683 | 3,676 | 3,251 | 3,002 | ||
2012 | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 53,823 | 53,737 | 53,473 | 53,218 | 52,812 | 50,874 | 50,183 | 63,961 | ||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 53,823 | 53,737 | 53,259 | 53,211 | 52,657 | 50,242 | 45,887 | 32,085 | ||
2012 | Professional Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 12,565 | 13,131 | 13,131 | 12,411 | 12,221 | 11,785 | 11,241 | 11,236 | ||
Total IBNR plus expected development on reported claims | 885 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 11,680 | 11,947 | 11,780 | 10,268 | 8,836 | 6,392 | 3,668 | 533 | ||
2012 | Workers' Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 12,213 | 12,213 | 12,213 | 12,213 | 12,213 | 12,213 | 12,213 | 11,763 | ||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 12,213 | 12,213 | 12,213 | 12,213 | 12,213 | 12,213 | 12,213 | $ 2,359 | ||
2013 | Health | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 33,944 | 33,945 | 33,945 | 33,960 | 34,203 | 33,841 | 30,544 | |||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 33,944 | 33,944 | 33,944 | 33,957 | 34,024 | 33,841 | 21,459 | |||
2013 | Multiline | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
2013 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 4,770 | 4,916 | 4,510 | 4,511 | 4,666 | 2,689 | 3,018 | |||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 4,770 | 4,652 | 4,274 | 4,191 | 2,298 | 1,917 | 1,371 | |||
2013 | Motor Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 174,931 | 174,925 | 174,848 | 174,782 | 174,744 | 179,930 | 182,833 | |||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 174,931 | 174,925 | 174,848 | 174,658 | 171,855 | 159,200 | 86,558 | |||
2013 | Motor Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 44,478 | 44,719 | 44,695 | 44,656 | 44,728 | 45,629 | 46,189 | |||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 44,478 | 44,476 | 44,476 | 44,431 | 44,363 | 41,066 | 21,112 | |||
2013 | Other Specialty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 2,586 | 2,755 | 2,801 | 2,821 | 2,840 | 2,875 | 2,492 | |||
Total IBNR plus expected development on reported claims | 46 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 2,540 | 2,578 | 2,323 | 2,339 | 2,426 | 1,828 | 213 | |||
2013 | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 62,774 | 62,431 | 62,491 | 62,504 | 61,786 | 59,002 | 60,955 | |||
Total IBNR plus expected development on reported claims | 537 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 62,237 | 61,996 | 61,083 | 60,352 | 58,533 | 55,674 | 34,807 | |||
2013 | Professional Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 17,290 | 17,489 | 17,314 | 16,494 | 14,844 | 13,319 | 12,435 | |||
Total IBNR plus expected development on reported claims | 2,614 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 14,676 | 14,863 | 14,092 | 11,175 | 7,771 | 3,482 | 710 | |||
2013 | Workers' Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 4,751 | 4,751 | 4,751 | 4,751 | 4,751 | 4,751 | 4,751 | |||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 4,751 | 4,751 | 4,751 | 4,751 | 4,751 | 4,751 | $ 4,751 | |||
2014 | Health | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 28,970 | 29,031 | 29,072 | 29,514 | 30,191 | 32,875 | ||||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 28,970 | 29,032 | 29,038 | 29,117 | 28,515 | 19,056 | ||||
2014 | Multiline | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 2,586 | 2,625 | 2,609 | 2,390 | 2,390 | 2,390 | ||||
Total IBNR plus expected development on reported claims | 1,173 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 1,413 | 1,092 | 566 | 145 | 0 | 0 | ||||
2014 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 1,000 | 1,355 | 1,033 | 1,174 | 1,229 | 1,238 | ||||
Total IBNR plus expected development on reported claims | 238 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 762 | 492 | 548 | 413 | 146 | 18 | ||||
2014 | Motor Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 94,192 | 94,147 | 94,385 | 94,688 | 92,844 | 93,718 | ||||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 94,192 | 94,147 | 94,385 | 89,687 | 86,297 | 49,994 | ||||
2014 | Motor Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 19,021 | 19,006 | 19,000 | 19,056 | 18,797 | 18,870 | ||||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 19,021 | 19,006 | 19,000 | 18,420 | 17,621 | 10,305 | ||||
2014 | Other Specialty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 2,125 | 1,084 | 1,701 | 1,776 | 3,525 | 4,768 | ||||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 2,125 | 1,084 | 1,282 | 1,124 | 659 | 197 | ||||
2014 | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 47,030 | 46,874 | 47,085 | 46,845 | 45,153 | 41,740 | ||||
Total IBNR plus expected development on reported claims | 510 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 46,520 | 46,301 | 45,211 | 43,640 | 40,172 | 20,230 | ||||
2014 | Professional Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 22,475 | 22,152 | 21,149 | 18,593 | 18,630 | 19,229 | ||||
Total IBNR plus expected development on reported claims | 6,017 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 16,458 | 16,448 | 14,173 | 9,716 | 5,440 | 1,370 | ||||
2014 | Workers' Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 0 | 0 | 3 | 0 | 0 | 0 | ||||
Total IBNR plus expected development on reported claims | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 0 | 0 | 0 | 0 | 0 | $ 0 | ||||
2015 | Health | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 33,885 | 33,894 | 34,116 | 33,530 | 34,097 | |||||
Total IBNR plus expected development on reported claims | 9 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 33,876 | 33,894 | 34,044 | 31,802 | 14,529 | |||||
2015 | Multiline | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 30,941 | 32,038 | 30,536 | 28,103 | 27,956 | |||||
Total IBNR plus expected development on reported claims | 11,885 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 19,056 | 16,107 | 9,990 | 2,828 | 30 | |||||
2015 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 2,152 | 1,979 | 1,756 | 1,690 | 1,699 | |||||
Total IBNR plus expected development on reported claims | 1,227 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 925 | 547 | 532 | 293 | 69 | |||||
2015 | Motor Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 134,951 | 132,853 | 129,991 | 130,410 | 128,199 | |||||
Total IBNR plus expected development on reported claims | 1,278 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 133,673 | 129,571 | 129,174 | 125,645 | 81,093 | |||||
2015 | Motor Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 23,939 | 23,263 | 22,505 | 22,516 | 22,035 | |||||
Total IBNR plus expected development on reported claims | 100 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 23,839 | 22,595 | 22,505 | 22,013 | 13,859 | |||||
2015 | Other Specialty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 4,229 | 4,519 | 6,898 | 6,769 | 4,794 | |||||
Total IBNR plus expected development on reported claims | 298 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 3,931 | 3,399 | 2,010 | 1,387 | 472 | |||||
2015 | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 30,615 | 30,954 | 31,752 | 30,352 | 27,872 | |||||
Total IBNR plus expected development on reported claims | 593 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 30,022 | 29,816 | 28,846 | 25,453 | 12,939 | |||||
2015 | Professional Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 22,748 | 22,528 | 21,100 | 18,545 | 18,548 | |||||
Total IBNR plus expected development on reported claims | 9,952 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 12,796 | 11,953 | 9,012 | 3,349 | 1,186 | |||||
2015 | Workers' Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 951 | 950 | 948 | 1,010 | 1,014 | |||||
Total IBNR plus expected development on reported claims | 174 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 777 | 688 | 564 | 251 | $ 28 | |||||
2016 | Health | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 41,355 | 41,255 | 40,889 | 37,747 | ||||||
Total IBNR plus expected development on reported claims | 193 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 41,162 | 41,255 | 39,988 | 21,881 | ||||||
2016 | Multiline | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 59,805 | 60,757 | 60,042 | 55,758 | ||||||
Total IBNR plus expected development on reported claims | 26,803 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 33,002 | 27,108 | 16,577 | 5,859 | ||||||
2016 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 7,867 | 7,124 | 6,519 | 6,203 | ||||||
Total IBNR plus expected development on reported claims | 3,197 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 4,670 | 3,277 | 1,589 | 122 | ||||||
2016 | Motor Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 179,801 | 174,037 | 169,294 | 166,389 | ||||||
Total IBNR plus expected development on reported claims | 1,001 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 178,800 | 170,658 | 157,948 | 97,325 | ||||||
2016 | Motor Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 29,051 | 29,090 | 28,279 | 27,853 | ||||||
Total IBNR plus expected development on reported claims | 200 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 28,851 | 28,609 | 27,023 | 16,725 | ||||||
2016 | Other Specialty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 9,131 | 9,142 | 10,401 | 8,360 | ||||||
Total IBNR plus expected development on reported claims | 1,751 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 7,380 | 5,646 | 3,107 | 1,473 | ||||||
2016 | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 23,477 | 24,005 | 26,127 | 25,633 | ||||||
Total IBNR plus expected development on reported claims | 1,450 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 22,027 | 21,040 | 18,198 | 9,944 | ||||||
2016 | Professional Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 16,925 | 17,328 | 16,960 | 13,778 | ||||||
Total IBNR plus expected development on reported claims | 9,028 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 7,897 | 4,915 | 2,187 | 342 | ||||||
2016 | Workers' Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 3,975 | 4,266 | 4,275 | 4,342 | ||||||
Total IBNR plus expected development on reported claims | 701 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 3,274 | 2,782 | 1,920 | $ 613 | ||||||
2017 | Health | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 46,687 | 46,455 | 45,007 | |||||||
Total IBNR plus expected development on reported claims | 72 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 46,615 | 44,125 | 23,834 | |||||||
2017 | Multiline | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 83,232 | 79,466 | 81,836 | |||||||
Total IBNR plus expected development on reported claims | 43,596 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 39,636 | 27,363 | 9,562 | |||||||
2017 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 7,379 | 6,525 | 5,431 | |||||||
Total IBNR plus expected development on reported claims | 4,556 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 2,823 | 1,412 | 136 | |||||||
2017 | Motor Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 195,258 | 188,754 | 187,109 | |||||||
Total IBNR plus expected development on reported claims | 7,033 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 188,225 | 170,157 | 115,204 | |||||||
2017 | Motor Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 40,394 | 39,621 | 39,986 | |||||||
Total IBNR plus expected development on reported claims | 683 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 39,711 | 37,058 | 23,091 | |||||||
2017 | Other Specialty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 6,447 | 6,011 | 9,087 | |||||||
Total IBNR plus expected development on reported claims | 1,913 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 4,534 | 3,083 | 484 | |||||||
2017 | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 69,042 | 78,430 | 84,771 | |||||||
Total IBNR plus expected development on reported claims | 4,804 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 64,238 | 56,397 | 43,281 | |||||||
2017 | Professional Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 9,762 | 9,940 | 10,252 | |||||||
Total IBNR plus expected development on reported claims | 6,673 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 3,089 | 1,437 | 228 | |||||||
2017 | Workers' Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 9,603 | 10,346 | 10,882 | |||||||
Total IBNR plus expected development on reported claims | 2,204 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 7,399 | 5,356 | $ 2,028 | |||||||
2018 | Health | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 60,176 | 56,868 | ||||||||
Total IBNR plus expected development on reported claims | 1,463 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 58,713 | 34,696 | ||||||||
2018 | Multiline | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 50,944 | 58,832 | ||||||||
Total IBNR plus expected development on reported claims | 30,215 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 20,729 | 8,134 | ||||||||
2018 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 3,438 | 2,901 | ||||||||
Total IBNR plus expected development on reported claims | 2,152 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 1,286 | 165 | ||||||||
2018 | Motor Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 170,016 | 150,700 | ||||||||
Total IBNR plus expected development on reported claims | 26,749 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 143,267 | 83,652 | ||||||||
2018 | Motor Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 47,209 | 42,336 | ||||||||
Total IBNR plus expected development on reported claims | 7,091 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 40,118 | 23,576 | ||||||||
2018 | Other Specialty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 7,519 | 6,165 | ||||||||
Total IBNR plus expected development on reported claims | 1,931 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 5,588 | 962 | ||||||||
2018 | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 30,291 | 28,219 | ||||||||
Total IBNR plus expected development on reported claims | 14,563 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 15,728 | 5,365 | ||||||||
2018 | Professional Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 4,468 | 4,482 | ||||||||
Total IBNR plus expected development on reported claims | 3,327 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 1,141 | 241 | ||||||||
2018 | Workers' Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 13,499 | 13,609 | ||||||||
Total IBNR plus expected development on reported claims | 5,178 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 8,321 | $ 4,213 | ||||||||
2019 | Health | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 33,736 | |||||||||
Total IBNR plus expected development on reported claims | 16,326 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 17,410 | |||||||||
2019 | Multiline | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 46,131 | |||||||||
Total IBNR plus expected development on reported claims | 35,096 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 11,035 | |||||||||
2019 | General Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 1,002 | |||||||||
Total IBNR plus expected development on reported claims | 976 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 26 | |||||||||
2019 | Motor Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 168,154 | |||||||||
Total IBNR plus expected development on reported claims | 69,111 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 99,043 | |||||||||
2019 | Motor Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 43,103 | |||||||||
Total IBNR plus expected development on reported claims | 18,000 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 25,103 | |||||||||
2019 | Other Specialty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 19,225 | |||||||||
Total IBNR plus expected development on reported claims | 13,828 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 5,397 | |||||||||
2019 | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 22,738 | |||||||||
Total IBNR plus expected development on reported claims | 18,684 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 4,054 | |||||||||
2019 | Professional Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 586 | |||||||||
Total IBNR plus expected development on reported claims | 441 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 145 | |||||||||
2019 | Workers' Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 22,927 | |||||||||
Total IBNR plus expected development on reported claims | 17,454 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 5,473 |
LOSS AND LOSS ADJUSTMENT EXPE_6
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES Reconciliation of the Net Incurred and Paid Claims Development (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Claims Development [Line Items] | ||||
Net outstanding liabilities | $ 438,830 | |||
Loss and loss adjustment expenses recoverable | 27,531 | $ 43,705 | ||
Add: Unallocated claims adjustment expenses | 4,227 | |||
Total gross liabilities for unpaid claims and claim adjustment expense | 470,588 | 482,662 | $ 464,380 | $ 306,641 |
Health | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 18,063 | |||
Total gross liabilities for unpaid claims and claim adjustment expense | 18,063 | $ 24,502 | $ 22,181 | $ 18,993 |
Multiline | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 148,768 | |||
General Liability | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 12,349 | |||
Motor Liability | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 105,172 | |||
Motor Property | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 26,074 | |||
Other | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 19,809 | |||
Property | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 41,141 | |||
Professional Liability | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 41,743 | |||
Workers' Compensation | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | $ 25,711 |
LOSS AND LOSS ADJUSTMENT EXPE_7
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES Historical Annual Percentage Payout of Net Incurred Claims (Details) | Dec. 31, 2019 |
Multiline | |
Claims Development [Line Items] | |
Year 1 | 10.20% |
Year 2 | 19.00% |
Year 3 | 18.80% |
Year 4 | 16.00% |
Year 5 | 13.30% |
Year 6 | 22.70% |
Year 7 | 0.00% |
Year 8 | 0.00% |
Year 9 | 0.00% |
Year 10 | 0.00% |
General Liability | |
Claims Development [Line Items] | |
Year 1 | 4.70% |
Year 2 | 13.50% |
Year 3 | 12.90% |
Year 4 | 11.40% |
Year 5 | 18.80% |
Year 6 | 29.50% |
Year 7 | 6.10% |
Year 8 | 2.70% |
Year 9 | 0.40% |
Year 10 | 0.00% |
Motor Casualty | |
Claims Development [Line Items] | |
Year 1 | 45.70% |
Year 2 | 33.10% |
Year 3 | 8.80% |
Year 4 | 5.10% |
Year 5 | 3.50% |
Year 6 | 1.80% |
Year 7 | 1.30% |
Year 8 | 0.70% |
Year 9 | 0.00% |
Year 10 | 0.00% |
Motor Property | |
Claims Development [Line Items] | |
Year 1 | 53.10% |
Year 2 | 39.80% |
Year 3 | 5.30% |
Year 4 | 0.60% |
Year 5 | 1.00% |
Year 6 | 0.20% |
Year 7 | 0.00% |
Year 8 | 0.00% |
Year 9 | 0.00% |
Year 10 | 0.00% |
Other | |
Claims Development [Line Items] | |
Year 1 | 21.10% |
Year 2 | 39.80% |
Year 3 | 19.10% |
Year 4 | 9.00% |
Year 5 | 2.80% |
Year 6 | 5.90% |
Year 7 | 2.30% |
Year 8 | 0.00% |
Year 9 | 0.00% |
Year 10 | 0.00% |
Property | |
Claims Development [Line Items] | |
Year 1 | 51.00% |
Year 2 | 32.90% |
Year 3 | 7.00% |
Year 4 | 2.90% |
Year 5 | 2.70% |
Year 6 | 0.90% |
Year 7 | 2.20% |
Year 8 | 0.30% |
Year 9 | 0.10% |
Year 10 | 0.00% |
Professional Liability | |
Claims Development [Line Items] | |
Year 1 | 5.30% |
Year 2 | 19.40% |
Year 3 | 28.70% |
Year 4 | 24.00% |
Year 5 | 14.00% |
Year 6 | 6.20% |
Year 7 | 2.30% |
Year 8 | 0.10% |
Year 9 | 0.00% |
Year 10 | 0.00% |
Workers' Compensation | |
Claims Development [Line Items] | |
Year 1 | 27.90% |
Year 2 | 41.60% |
Year 3 | 23.00% |
Year 4 | 6.10% |
Year 5 | 0.90% |
Year 6 | 0.50% |
Year 7 | 0.00% |
Year 8 | 0.00% |
Year 9 | 0.00% |
Year 10 | 0.00% |
RETROCESSION (Details)
RETROCESSION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Ceded Credit Risk [Line Items] | ||||||||||||
Premiums ceded to other companies | $ 72,800,000 | $ 102,900,000 | $ 33,800,000 | |||||||||
Net loss and loss adjustment expenses incurred | $ 94,184,000 | $ 92,962,000 | $ 78,476,000 | $ 122,865,000 | $ 96,454,000 | $ 86,780,000 | $ 84,815,000 | $ 95,824,000 | 388,487,000 | 363,873,000 | 502,404,000 | |
Loss and loss expenses recovered and recoverable | 60,700,000 | 71,000,000 | 31,800,000 | |||||||||
Loss and loss adjustment expenses recoverable | 43,705,000 | 43,705,000 | $ 29,459,000 | $ 2,704,000 | ||||||||
Provision for uncollectible losses recoverable | 0 | 0 | 0 | 0 | ||||||||
Unrated | ||||||||||||
Ceded Credit Risk [Line Items] | ||||||||||||
Loss and loss adjustment expenses recoverable | 21,200,000 | 34,300,000 | 21,200,000 | 34,300,000 | ||||||||
AM Best, A- Rating | ||||||||||||
Ceded Credit Risk [Line Items] | ||||||||||||
Loss and loss adjustment expenses recoverable | $ 6,400,000 | $ 9,400,000 | $ 6,400,000 | $ 9,400,000 |
SENIOR CONVERTIBLE NOTES Detail
SENIOR CONVERTIBLE NOTES Details (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Aug. 07, 2018 | |
Debt Instrument [Line Items] | |||
Unamortized discount | $ 8,200,000 | ||
Convertible senior notes payable | $ 93,514,000 | $ 91,185,000 | |
Senior Notes | Senior Unsecured Convertible Notes | |||
Debt Instrument [Line Items] | |||
Issuance of senior unsecured convertible notes | $ 100,000,000 | ||
Debt interest rate | 4.00% | ||
Effective interest rate | 6.00% | ||
Unamortized discount | 5,900,000 | 7,500,000 | |
Unamortized debt issuance expense | 2,300,000 | 2,900,000 | |
Convertible debt, carrying amount of equity component | 7,900,000 | ||
Accrued interest | 1,700,000 | ||
Recognized interest expense | $ 6,300,000 | $ 2,500,000 | |
Senior Notes | Pro Forma | Senior Unsecured Convertible Notes | |||
Debt Instrument [Line Items] | |||
Debt conversion price (in dollars per share) | $ 17.19 |
SHARE CAPITAL Narrative (Detail
SHARE CAPITAL Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 02, 2019 | Apr. 26, 2017 | |
Class of Stock [Line Items] | |||||
Preferred shares issued (in shares) | 0 | 0 | |||
Preferred shares outstanding (in shares) | 0 | ||||
Registration rights | 50.00% | ||||
Aggregate principal amount of securities | $ 200,000,000 | ||||
Greenlight Re | |||||
Class of Stock [Line Items] | |||||
Dividends declared and paid | 0 | $ 0 | $ 33,000,000 | ||
Greenlight Re | Cayman Islands | |||||
Class of Stock [Line Items] | |||||
Insurance regulations minimum capital requirement | 50,000,000 | ||||
Minimum net worth requirement | 200,900,000 | 191,900,000 | |||
Statutory capital and surplus | 519,900,000 | ||||
Net income (loss) | 9,200,000 | (330,300,000) | (38,200,000) | ||
Amount of capital and surplus available for distribution as dividends | 319,000,000 | 322,800,000 | |||
GRIL | Ireland | |||||
Class of Stock [Line Items] | |||||
Minimum net worth requirement | 5,400,000 | 5,900,000 | |||
Statutory capital and surplus | 35,600,000 | 36,600,000 | |||
Net income (loss) | 800,000 | (15,400,000) | $ (3,700,000) | ||
Amount of capital and surplus available for distribution as dividends | $ 0 | $ 0 | |||
Common Class A | |||||
Class of Stock [Line Items] | |||||
Number of entitled votes per share | $ 1 | ||||
Percentage of total voting power of all issued and outstanding ordinary shares | 9.90% | ||||
Shares authorized to purchase under the share repurchase plan (in shares) | 2,500,000 | ||||
Repurchased of ordinary shares (in shares) | 0 | 1,180,000 | 136,312 | ||
Number of shares available under share repurchase plan (in shares) | 2,500,000 | ||||
Par value per share (in dollars per share) | $ 0.1 | $ 0.1 | |||
Common Class A | Stock Compensation Plan | |||||
Class of Stock [Line Items] | |||||
Shares authorized for the company's stock incentive plan (in shares) | 5,000,000 | 1,500,000 | |||
Shares available for future issuance (in shares) | 555,805 | 1,122,170 | |||
Common Class A | Stock Compensation Plan | Minimum | |||||
Class of Stock [Line Items] | |||||
Shares authorized for the company's stock incentive plan (in shares) | 3,500,000 | ||||
Common Class A | Stock Compensation Plan | Maximum | |||||
Class of Stock [Line Items] | |||||
Shares authorized for the company's stock incentive plan (in shares) | 5,000,000 | ||||
Common Class A | Service Provider | |||||
Class of Stock [Line Items] | |||||
Shares authorized for issuance in relation to share purchase options granted to service provider (in shares) | 300,000 | 300,000 | |||
Shares available for future issuance (in shares) | 0 | 0 | |||
Common Class B | |||||
Class of Stock [Line Items] | |||||
Number of entitled votes per share | $ 10 | ||||
Percentage of total voting power of all issued and outstanding ordinary shares | 9.50% | ||||
Repurchased of ordinary shares (in shares) | 0 | 0 | 0 | ||
Par value per share (in dollars per share) | $ 0.10 | $ 0.10 |
SHARE-BASED COMPENSATION Narrat
SHARE-BASED COMPENSATION Narrative (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 522,250 | ||||
Expiration period after the grant date | 10 years | ||||
Granted (in dollars per share) | $ 9.63 | ||||
Exercised (in shares) | 50,000 | ||||
Number of options vested (in shares) | 113,585 | ||||
Weighted average grant date fair value of options vested (in dollars per share) | $ 10.29 | ||||
General and Administrative Expense | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 3,900,000 | $ 4,600,000 | $ 4,900,000 | ||
Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Cliff vesting period after date of issuance | 3 years | ||||
Granted (in dollars per share) | $ 10.69 | $ 15.78 | |||
Share-based compensation expense | $ 2,800,000 | $ 2,900,000 | 3,300,000 | ||
Restricted shares forfeited by employees who left the company prior to the vesting period (in shares) | 37,502 | ||||
Stock-based compensation expense | $ 200,000 | 300,000 | 0 | ||
Unrecognized compensation costs related to non-vested restricted shares | $ 2,600,000 | 2,700,000 | 2,600,000 | $ 3,500,000 | |
Weighted average period for recognition | 1 year 7 months | 1 year 7 months | 1 year 7 months | ||
Total fair value of restricted shares vested | $ 3,100,000 | $ 2,800,000 | $ 4,500,000 | ||
RSU issued to employees (in shares) | 639,497 | 245,975 | |||
RSUs were forfeited by employees (in shares) | 44,644 | ||||
Anti-dilutive stock options outstanding | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 900,000 | $ 1,500,000 | 1,300,000 | ||
Weighted average period for recognition | 2 years 5 months | 2 years 11 months | |||
Expiration period after the grant date | 10 years | ||||
Granted (in dollars per share) | $ 10.25 | $ 10 | |||
Total compensation cost related to non-vested options not yet recognized | $ 2,200,000 | $ 1,300,000 | $ 2,200,000 | ||
Exercised (in shares) | 0 | 0 | |||
Number of options vested (in shares) | 80,000 | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Cliff vesting period after date of issuance | 3 years | ||||
Granted (in dollars per share) | $ 10.84 | $ 15.90 | |||
Share-based compensation expense | $ 200,000 | $ 200,000 | $ 200,000 | ||
Weighted average period for recognition | 1 year 10 months | 1 year 11 months | |||
Total compensation cost related to non-vested options not yet recognized | $ 400,000 | $ 400,000 | $ 400,000 | ||
RSU issued to employees (in shares) | 48,535 | 28,301 | 11,559 | ||
RSUs were forfeited by employees (in shares) | 24,165 | 648 | |||
2018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 16.70% | ||||
2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 16.70% | ||||
2020 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 16.70% | ||||
Chief Executive Officer | Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares issued pursuant to stock incentive plan (in shares) | 89,945 | ||||
Cliff vesting period after date of issuance | 5 years | ||||
Granted (in dollars per share) | $ 10.65 | $ 15.90 | |||
Share-based compensation expense | $ 0 | $ 0 | |||
Chief Executive Officer | 2021 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 16.70% | ||||
Chief Executive Officer | 2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 16.70% | ||||
Chief Executive Officer | 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 16.70% | ||||
Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Cliff vesting period after date of issuance | 1 year | ||||
Director | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Cliff vesting period after date of issuance | 12 months | ||||
Interim Chief Executive Officer | Anti-dilutive stock options outstanding | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in dollars per share) | $ 9.90 | ||||
Interim Chief Executive Officer | Grant Date | Anti-dilutive stock options outstanding | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 100.00% | ||||
Former Chief Executive Officer | Anti-dilutive stock options outstanding | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options vested (in shares) | 80,000 | ||||
Weighted average grant date fair value of options vested (in dollars per share) | $ 9.60 | $ 9.60 | |||
Common Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 480,000 | ||||
Issuance of shares as a result of stock options exercised (in shares) | 5,011 | ||||
Common Class A | Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares issued pursuant to stock incentive plan (in shares) | 235,701 | 160,595 | 125,371 | ||
Restricted shares forfeited by employees who left the company prior to the vesting period (in shares) | 44,644 | 46,943 | |||
Common Class A | Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares issued pursuant to stock incentive plan (in shares) | 326,240 | 30,660 | 0 | ||
Common Class A | Anti-dilutive stock options outstanding | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Issuance of shares as a result of stock options exercised (in shares) | 0 | 0 | |||
Common Class A | Chief Executive Officer | Anti-dilutive stock options outstanding | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 0 | 0 | |||
Expiration period after the grant date | 10 years | 10 years | |||
Granted (in dollars per share) | $ 9.60 | ||||
Common Class A | Chief Executive Officer | Grant Date | Anti-dilutive stock options outstanding | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 16.70% | ||||
Common Class A | Director | Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares issued pursuant to stock incentive plan (in shares) | 41,396 | ||||
Common Class A | Non-Employee Director | Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares issued pursuant to stock incentive plan (in shares) | 77,556 | 54,720 | |||
Common Class A | Interim Chief Executive Officer | Anti-dilutive stock options outstanding | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 42,250 |
SHARE CAPITAL Voting Ordinary S
SHARE CAPITAL Voting Ordinary Shares Issued and Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Class A | |||
Increase (Decrease) in Common Stock [Roll Forward] | |||
Balance – beginning of year (in shares) | 30,130,214 | 31,104,830 | 31,111,432 |
Issue of ordinary shares, net of forfeitures (in shares) | 609,181 | 205,384 | 129,530 |
Repurchase of ordinary shares (in shares) | 0 | (1,180,000) | (136,312) |
Class B shares converted to Class A shares (in shares) | 0 | 0 | 180 |
Balance – end of year (in shares) | 30,739,395 | 30,130,214 | 31,104,830 |
Common Class B | |||
Increase (Decrease) in Common Stock [Roll Forward] | |||
Balance – beginning of year (in shares) | 6,254,715 | 6,254,715 | 6,254,895 |
Issue of ordinary shares, net of forfeitures (in shares) | 0 | 0 | 0 |
Repurchase of ordinary shares (in shares) | 0 | 0 | 0 |
Class B shares converted to Class A shares (in shares) | 0 | 0 | (180) |
Balance – end of year (in shares) | 6,254,715 | 6,254,715 | 6,254,715 |
SHARE-BASED COMPENSATION Restri
SHARE-BASED COMPENSATION Restricted Shares (Details) - Restricted stock - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of non-vested restricted shares | ||
Balance at beginning (in shares) | 432,457 | 331,510 |
Granted (in shares) | 639,497 | 245,975 |
Vested (in shares) | (161,365) | (100,384) |
Forfeited (in shares) | (44,644) | |
Balance at end (in shares) | 873,087 | 432,457 |
Weighted average grant date fair value | ||
Balance at beginning (in dollars per share) | $ 18.58 | $ 23.45 |
Granted (in dollars per share) | 10.69 | 15.78 |
Vested (in dollars per share) | 19.44 | 27.74 |
Forfeited (in dollars per share) | 14.12 | 18.77 |
Balance at end (in dollars per share) | $ 12.83 | $ 18.58 |
SHARE-BASED COMPENSATION Black
SHARE-BASED COMPENSATION Black Scholes option pricing model assumptions (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |
Risk free rate | 2.32% |
Estimated volatility | 31.40% |
Expected term (in years) | 10 years |
Dividend yield | 0.00% |
Forfeiture rate | 0.00% |
SHARE-BASED COMPENSATION Share
SHARE-BASED COMPENSATION Share Based Compensation Options Rollfoward (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of options outstanding | ||||
Balance at beginning of period (in shares) | 1,015,627 | 543,377 | ||
Granted (in shares) | 522,250 | |||
Exercised (in shares) | (50,000) | |||
Expired (in shares) | (60,000) | (80,000) | ||
Balance at end of period (in shares) | 1,015,627 | 543,377 | ||
Weighted average exercise price | ||||
Balance at beginning of period (in dollars per share) | $ 23.55 | $ 25.40 | ||
Granted (in dollars per share) | 21.25 | |||
Exercised (in dollars per share) | 19.60 | |||
Expired (in dollars per share) | $ 28.44 | 29.39 | ||
Balance at end of period (in dollars per share) | 23.55 | $ 25.40 | ||
Weighted average grant date fair value | ||||
Balance at beginning of period (in dollars per share) | 9.89 | 10.17 | ||
Granted (in dollars per share) | 9.63 | |||
Exercised (in dollars per share) | 10.18 | |||
Expired (in dollars per share) | $ 6.25 | $ 8.69 | ||
Balance at end of period (in dollars per share) | $ 9.89 | $ 10.17 | ||
Intrinsic value, Balance at beginning | $ 0 | $ 0 | $ 0.5 | |
Intrinsic value, Exercised | 0.1 | |||
Intrinsic value, Balance at end | $ 0 | $ 0 | $ 0 | $ 0.5 |
Weighted average remaining contractual term | 6 years 11 months | 4 years 8 months | ||
Anti-dilutive stock options outstanding | ||||
Number of options outstanding | ||||
Balance at beginning of period (in shares) | 935,627 | |||
Exercised (in shares) | 0 | 0 | ||
Balance at end of period (in shares) | 875,627 | 935,627 | ||
Weighted average exercise price | ||||
Balance at beginning of period (in dollars per share) | $ 23.05 | |||
Balance at end of period (in dollars per share) | 22.68 | $ 23.05 | ||
Weighted average grant date fair value | ||||
Granted (in dollars per share) | $ 10.25 | $ 10 | ||
Weighted average remaining contractual term | 5 years 9 months | 6 years 5 months |
SHARE-BASED COMPENSATION Option
SHARE-BASED COMPENSATION Options Exercisable (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Number of options exercisable (in shares) | 555,627 | 535,627 | 535,627 |
Weighted average exercise price (in dollars per share) | $ 23.54 | $ 24.43 | $ 25.66 |
Weighted average remaining contractual term | 4 years 11 months | 4 years 11 months | 4 years 7 months |
Intrinsic value ($ in millions) | $ 0 | $ 0 | $ 0 |
SHARE-BASED COMPENSATION Rest_2
SHARE-BASED COMPENSATION Restricted Units (Details) - RSUs - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of non-vested RSUs | |||
Balance at beginning (in shares) | 46,398 | 22,798 | |
Granted (in shares) | 48,535 | 28,301 | 11,559 |
Vested (in shares) | (7,186) | (4,053) | |
Forfeited (in shares) | (24,165) | (648) | |
Balance at end (in shares) | 63,582 | 46,398 | 22,798 |
Weighted average grant date fair value | |||
Balance at beginning (in dollars per share) | $ 18.13 | $ 23.50 | |
Granted (in dollars per share) | 10.84 | 15.90 | |
Vested (in dollars per share) | 21.56 | 32.21 | |
Forfeited (in dollars per share) | 13.96 | 21.65 | |
Balance at end (in dollars per share) | $ 13.76 | $ 18.13 | $ 23.50 |
NET INVESTMENT INCOME (LOSS) (D
NET INVESTMENT INCOME (LOSS) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Investment Income [Abstract] | |||||||||||
Realized gains (losses) | $ (14,150,000) | $ (236,887,000) | $ 87,618,000 | ||||||||
Change in unrealized gains and losses | 8,380,000 | (32,597,000) | (41,444,000) | ||||||||
Investment related foreign exchange gains (losses) | 20,000 | 938,000 | (7,653,000) | ||||||||
Interest and dividend income, net of withholding taxes | 16,059,000 | 35,468,000 | 25,510,000 | ||||||||
Interest, dividend and other expenses | (4,798,000) | (17,987,000) | (23,937,000) | ||||||||
Income (loss) from equity method investment | 700,000 | (247,000) | 0 | ||||||||
Investment advisor compensation on joint venture | 0 | (11,221,000) | (19,863,000) | ||||||||
Net investment related income (loss) | 6,211,000 | (262,533,000) | 20,231,000 | ||||||||
Income (loss) from investment in related party investment fund | $ (5,714,000) | $ 6,609,000 | $ 14,405,000 | $ 30,756,000 | $ (50,548,000) | $ (10,025,000) | $ 0 | $ 0 | 46,056,000 | (60,573,000) | 0 |
Total net investment related income (loss) | $ 52,267,000 | $ (323,106,000) | $ 20,231,000 | ||||||||
Net investment gain (loss) as a percentage | 9.30% | (30.30%) | 1.50% | ||||||||
Net increase (decrease) in provision | $ 5,988,000 | $ 0 | $ 0 |
TAXATION Narrative (Details)
TAXATION Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Examination [Line Items] | |||
Valuation allowance | $ 2,600,000 | $ 2,200,000 | |
U.S. tax treaty | 1.00% | ||
Federal excise taxes | $ 3,800,000 | 3,600,000 | $ 5,000,000 |
GRIL | |||
Income Tax Examination [Line Items] | |||
Net operating loss carry forward | 28,200,000 | 28,600,000 | |
Verdant | |||
Income Tax Examination [Line Items] | |||
Net operating loss carry forward | 4,600,000 | ||
Expire at various dates | 2,900,000 | ||
No expire at various dates | 1,700,000 | ||
Other Assets | |||
Income Tax Examination [Line Items] | |||
Deferred tax asset | 3,600,000 | 3,600,000 | |
Taxes recoverable | $ 0 | $ 0 |
TAXATION Deferred Income Tax Be
TAXATION Deferred Income Tax Benefit (Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current tax (expense) benefit | $ (43) | $ 1,840 | $ 465 | ||||||||
Deferred tax (expense) benefit | (8) | (4) | (14) | ||||||||
Increase in deferred tax valuation allowance | (432) | (2,168) | 0 | ||||||||
Income tax (expense) benefit | $ (683) | $ 179 | $ 94 | $ (73) | $ (1,780) | $ 355 | $ 323 | $ 770 | $ (483) | $ (332) | $ 451 |
RELATED PARTY TRANSACTIONS Narr
RELATED PARTY TRANSACTIONS Narrative (Details) - USD ($) | Jan. 01, 2019 | Sep. 01, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Solasglas Investment LP (SILP) | ||||||
Related Party Transaction [Line Items] | ||||||
Management fee | $ 3,100,000 | $ 3,100,000 | $ 4,893,000 | $ 3,100,000 | ||
Board of Directors Chairman | Limited Partnership Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Performance compensation reduced rate | 10.00% | |||||
Performance compensation full rate | 20.00% | |||||
Performance compensation reduced rate | 10.00% | |||||
Loss carry forward recoupment required | 150.00% | |||||
Board of Directors Chairman | Investment Advisory Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Performance compensation | $ 0 | $ 4,981,000 | $ 0 | |||
Investment management fee rate - monthly | 0.125% | |||||
Investment management fee rate - annual | 1.50% | |||||
Automatic agreement extension, term | 3 years | |||||
Board of Directors Chairman | Service Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Investor relations fee monthly | $ 5,000 | |||||
Contract termination prior notice period | 30 days | |||||
Board of Directors Chairman | Collateral Assets Investement Management Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Contract termination prior notice period | 30 days | |||||
Affiliated Entity | Green Bricks Partners Inc (GRBK) | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage | 47.80% |
RELATED PARTY TRANSACTIONS Rela
RELATED PARTY TRANSACTIONS Related Party and Total Non-controlling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests [Roll Forward] | |||||||
Redeemable non-controlling interest in related party joint venture, Opening balance | $ 1,692 | ||||||
Redeemable non-controlling interest in related party joint venture, Ending balance | $ 1,692 | 0 | $ 1,692 | ||||
Nonredeemable Noncontrolling Interest [Roll Forward] | |||||||
Non-controlling interest in related party joint venture, Opening balance | $ 12,933 | 485 | 12,933 | $ 11,561 | |||
Total non-controlling interest in related party joint venture, Opening balance | 20,102 | 2,177 | 20,102 | 17,445 | |||
Income (loss) attributed to non-controlling interest | (169) | $ (1,159) | $ (621) | (2,326) | 0 | (4,275) | 578 |
Income (loss) attributed to non-controlling interest | 0 | (4,275) | 579 | ||||
Net contribution into (withdrawal from) non-controlling interest | (2,177) | (13,650) | |||||
Net contribution into (withdrawal from) non-controlling interest | 2,078 | ||||||
Non-controlling interest in related party joint venture, Ending balance | 485 | 0 | 485 | 12,933 | |||
Total non-controlling interest in related party joint venture, Ending balance | 2,177 | 0 | 2,177 | 20,102 | |||
Redeemable Noncontrolling Interest In Related Party Joint Venture | |||||||
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests [Roll Forward] | |||||||
Redeemable non-controlling interest in related party joint venture, Opening balance | $ 7,169 | 1,692 | 7,169 | 5,884 | |||
Redeemable non-controlling interest in related party joint venture, Ending balance | $ 1,692 | 0 | 1,692 | 7,169 | |||
Noncontrolling Interest | |||||||
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests [Roll Forward] | |||||||
Income (loss) attributed to non-controlling interest | 0 | (2,680) | 201 | ||||
Net contribution into (withdrawal from) non-controlling interest | (1,692) | (2,797) | 1,084 | ||||
Non-controlling interest in related party joint venture | |||||||
Nonredeemable Noncontrolling Interest [Roll Forward] | |||||||
Income (loss) attributed to non-controlling interest | 0 | (1,595) | 378 | ||||
Net contribution into (withdrawal from) non-controlling interest | $ 485 | $ 10,853 | |||||
Net contribution into (withdrawal from) non-controlling interest | $ 994 |
COMMITMENTS AND CONTINGENCIES S
COMMITMENTS AND CONTINGENCIES Schedule of Letters of Credit (Details) - Financial Standby Letter of Credit - Citibank Europe plc | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Line of Credit Facility [Line Items] | |
Facility | $ 400,000,000 |
Notice period required for termination | 120 days |
COMMITMENTS AND CONTINGENCIES N
COMMITMENTS AND CONTINGENCIES Narrative (Details) € in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)facility | Dec. 31, 2019EUR (€) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | ||||
Letter of credit facility | facility | 1 | |||
Aggregate amount of letters of credit issued | $ 204,500,000 | $ 208,300,000 | ||
Total equity securities, restricted cash, and cash and cash equivalents fair value pledged as security against the letters of credit | 213,400,000 | 221,700,000 | ||
Collateral held in trust | 528,700,000 | $ 463,400,000 | ||
Short-term lease, cost | $ 500,000 | |||
Lessee, operating lease, term of contract | 5 years | |||
Operating lease, right-of-use asset | $ 300,000 | |||
Lease liability | 300,000 | |||
Credit facility maximum lending capacity | 6,000,000 | |||
Unused commitments to extend credit | 400,000 | |||
GRIL | ||||
Line of Credit Facility [Line Items] | ||||
Short-term lease, cost | € | € 0.1 | |||
Accounting Standards Update 2016-02 | ||||
Line of Credit Facility [Line Items] | ||||
Operating lease, right-of-use asset | $ 300,000 | |||
Lease liability | $ 300,000 | |||
Advisory fee | ||||
Line of Credit Facility [Line Items] | ||||
Other commitment | $ 2,000,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES Schedule of Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating lease obligations | |
2020 | $ 679 |
2021 | 62 |
2022 | 62 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total | 803 |
Total future obligations by year | |
2020 | 7,029 |
2021 | 4,062 |
2022 | 4,062 |
2023 | 104,000 |
2024 | 0 |
Thereafter | 0 |
Contractual Obligations Total | 119,153 |
Advisory fee | |
Loan facility | |
2020 | 2,000 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total | 2,000 |
Loan facility | |
Loan facility | |
2020 | 350 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total | 350 |
Interest and convertible note payable | |
Interest and convertible note payable | |
2020 | 4,000 |
2021 | 4,000 |
2022 | 4,000 |
2023 | 104,000 |
2024 | 0 |
Thereafter | 0 |
Total | $ 116,000 |
SEGMENT REPORTING Schedule of R
SEGMENT REPORTING Schedule of Revenue by Major Customers (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Revenue, Major Customer [Line Items] | |||||||||||
Number of operating segments | segment | 1 | ||||||||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | ||||||||
Gross premiums written | $ 98,470 | $ 110,607 | $ 152,340 | $ 162,560 | $ 135,143 | $ 115,154 | $ 142,109 | $ 175,125 | $ 523,977 | $ 567,531 | $ 692,651 |
Broker Concentration Risk | Gross Premiums Written | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Concentration risk, percentage | 80.80% | 86.80% | 78.90% | ||||||||
Gross premiums written | $ 423,544 | $ 492,696 | $ 546,509 | ||||||||
Broker Concentration Risk | Gross Premiums Written | Guy Carpenter (Marsh) | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Concentration risk, percentage | 56.70% | 66.40% | 52.90% | ||||||||
Gross premiums written | $ 297,150 | $ 376,696 | $ 366,390 | ||||||||
Broker Concentration Risk | Gross Premiums Written | Trean Re | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Concentration risk, percentage | 16.30% | 8.00% | 7.90% | ||||||||
Gross premiums written | $ 85,323 | $ 45,446 | $ 54,799 | ||||||||
Broker Concentration Risk | Gross Premiums Written | Aon Benfield | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Concentration risk, percentage | 7.80% | 12.40% | 18.10% | ||||||||
Gross premiums written | $ 41,071 | $ 70,554 | $ 125,320 | ||||||||
Broker Concentration Risk | Gross Premiums Written | All others | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Concentration risk, percentage | 19.20% | 13.20% | 21.10% | ||||||||
Gross premiums written | $ 100,433 | $ 74,835 | $ 146,142 |
SEGMENT REPORTING Schedule of G
SEGMENT REPORTING Schedule of Gross Premiums Written by Line of Business (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 98,470 | $ 110,607 | $ 152,340 | $ 162,560 | $ 135,143 | $ 115,154 | $ 142,109 | $ 175,125 | $ 523,977 | $ 567,531 | $ 692,651 |
Gross premiums written | 100.00% | 100.00% | 100.00% | ||||||||
Commercial | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 14,165 | $ 10,487 | $ 12,256 | ||||||||
Gross premiums written | 2.70% | 1.80% | 1.80% | ||||||||
Motor | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 59,402 | $ 76,425 | $ 71,188 | ||||||||
Gross premiums written | 11.30% | 13.50% | 10.20% | ||||||||
Personal | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 12,390 | $ 14,118 | $ 49,491 | ||||||||
Gross premiums written | 2.40% | 2.50% | 7.20% | ||||||||
Total Property | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 85,957 | $ 101,030 | $ 132,935 | ||||||||
Gross premiums written | 16.40% | 17.80% | 19.20% | ||||||||
General Liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 2,401 | $ 1,429 | $ 4,753 | ||||||||
Gross premiums written | 0.50% | 0.30% | 0.70% | ||||||||
Motor Liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 233,591 | $ 291,690 | $ 281,551 | ||||||||
Gross premiums written | 44.60% | 51.40% | 40.60% | ||||||||
Professional Liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ (448) | $ 3,068 | $ 8,703 | ||||||||
Gross premiums written | (0.10%) | 0.50% | 1.30% | ||||||||
Workers' Compensation | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 50,369 | $ 24,101 | $ 24,803 | ||||||||
Gross premiums written | 9.60% | 4.30% | 3.60% | ||||||||
Multi-line | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 76,461 | $ 57,497 | $ 123,340 | ||||||||
Gross premiums written | 14.60% | 10.10% | 17.80% | ||||||||
Total Casualty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 362,374 | $ 377,785 | $ 443,150 | ||||||||
Gross premiums written | 69.20% | 66.60% | 64.00% | ||||||||
Accident & Health | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 39,175 | $ 69,605 | $ 66,800 | ||||||||
Gross premiums written | 7.50% | 12.20% | 9.60% | ||||||||
Financial | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 23,087 | $ 16,611 | $ 48,380 | ||||||||
Gross premiums written | 4.40% | 2.90% | 7.00% | ||||||||
Marine | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 160 | $ 394 | $ 0 | ||||||||
Gross premiums written | 0.00% | 0.10% | 0.00% | ||||||||
Other Specialty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 13,224 | $ 2,106 | $ 1,386 | ||||||||
Gross premiums written | 2.50% | 0.40% | 0.20% | ||||||||
Total Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $ 75,646 | $ 88,716 | $ 116,566 | ||||||||
Gross premiums written | 14.40% | 15.60% | 16.80% |
SEGMENT REPORTING Geographic in
SEGMENT REPORTING Geographic information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Gross premiums written | $ 98,470 | $ 110,607 | $ 152,340 | $ 162,560 | $ 135,143 | $ 115,154 | $ 142,109 | $ 175,125 | $ 523,977 | $ 567,531 | $ 692,651 |
Gross premiums by geographical area as a percentage of total gross premiums | 100.00% | 100.00% | 100.00% | ||||||||
U.S. and Caribbean | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Gross premiums written | $ 435,458 | $ 507,705 | $ 606,510 | ||||||||
Gross premiums by geographical area as a percentage of total gross premiums | 83.10% | 89.50% | 87.60% | ||||||||
Worldwide | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Gross premiums written | $ 84,728 | $ 59,366 | $ 86,714 | ||||||||
Gross premiums by geographical area as a percentage of total gross premiums | 16.20% | 10.50% | 12.50% | ||||||||
Europe | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Gross premiums written | $ (13) | $ 506 | $ (612) | ||||||||
Gross premiums by geographical area as a percentage of total gross premiums | 0.00% | 0.00% | (0.10%) | ||||||||
Asia | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Gross premiums written | $ 3,804 | $ (46) | $ 39 | ||||||||
Gross premiums by geographical area as a percentage of total gross premiums | 0.70% | 0.00% | 0.00% |
QUARTERLY FINANCIAL RESULTS (_3
QUARTERLY FINANCIAL RESULTS (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||||||||||
Gross premiums written | $ 98,470 | $ 110,607 | $ 152,340 | $ 162,560 | $ 135,143 | $ 115,154 | $ 142,109 | $ 175,125 | $ 523,977 | $ 567,531 | $ 692,651 |
Gross premiums ceded | (90) | (4,035) | (23,141) | (21,401) | (30,252) | (15,456) | (27,237) | (29,843) | (48,667) | (102,788) | (56,587) |
Net premiums written | 98,380 | 106,572 | 129,199 | 141,159 | 104,891 | 99,698 | 114,872 | 145,282 | 475,310 | 464,743 | 636,064 |
Change in net unearned premium reserves | 10,243 | 22,582 | (8,758) | (15,797) | 14,708 | 14,406 | 13,944 | 562 | 8,270 | 43,620 | (10,060) |
Net premiums earned | 108,623 | 129,154 | 120,441 | 125,362 | 119,599 | 114,104 | 128,816 | 145,844 | 483,580 | 508,363 | 626,004 |
Income (loss) from investment in related party investment fund | (5,714) | 6,609 | 14,405 | 30,756 | (50,548) | (10,025) | 0 | 0 | 46,056 | (60,573) | 0 |
Net investment income (loss) | (3,054) | 3,312 | 4,386 | 1,567 | (5,810) | (70,851) | (40,656) | (145,216) | 6,211 | (262,533) | 20,231 |
Other income (expense), net | 1,007 | (887) | 1,117 | 1,069 | (982) | (683) | (76) | (487) | 2,306 | (2,228) | (560) |
Total revenues | 100,862 | 138,188 | 140,349 | 158,754 | 62,259 | 32,545 | 88,084 | 141 | 538,153 | 183,029 | 645,675 |
Expenses | |||||||||||
Net loss and loss adjustment expenses incurred | 94,184 | 92,962 | 78,476 | 122,865 | 96,454 | 86,780 | 84,815 | 95,824 | 388,487 | 363,873 | 502,404 |
Acquisition costs | 27,424 | 30,962 | 37,172 | 21,526 | 38,312 | 28,331 | 34,623 | 44,209 | 117,084 | 145,475 | 161,740 |
General and administrative expenses | 7,338 | 7,725 | 7,919 | 6,840 | 5,123 | 7,136 | 6,958 | 5,956 | 29,822 | 25,173 | 26,356 |
Interest expense | 1,579 | 1,578 | 1,562 | 1,544 | 1,578 | 927 | 0 | 0 | 6,263 | 2,505 | 0 |
Total expenses | 130,525 | 133,227 | 125,129 | 152,775 | 141,467 | 123,174 | 126,396 | 145,989 | 541,656 | 537,026 | 690,500 |
Income (loss) before income tax expense | (29,663) | 4,961 | 15,220 | 5,979 | (3,503) | (353,997) | (44,825) | ||||
Income tax (expense) benefit | (683) | 179 | 94 | (73) | (1,780) | 355 | 323 | 770 | (483) | (332) | 451 |
Net income (loss) | (80,988) | (90,274) | (37,989) | (145,078) | (3,986) | (354,329) | (44,374) | ||||
Loss (income) attributable to non-controlling interest in related party joint venture | 169 | 1,159 | 621 | 2,326 | 0 | 4,275 | (578) | ||||
Net income (loss) attributable to Greenlight Capital Re, Ltd. | $ (30,346) | $ 5,140 | $ 15,314 | $ 5,906 | $ (80,819) | $ (89,115) | $ (37,368) | $ (142,752) | $ (3,986) | $ (350,054) | $ (44,952) |
Earnings (loss) per share | |||||||||||
Basic (in dollars per share) | $ (0.84) | $ 0.14 | $ 0.42 | $ 0.16 | $ (2.25) | $ (2.48) | $ (1.01) | $ (3.85) | $ (0.11) | $ (9.74) | $ (1.21) |
Diluted (in dollars per share) | $ (0.84) | $ 0.14 | $ 0.42 | $ 0.16 | $ (2.25) | $ (2.48) | $ (1.01) | $ (3.85) | $ (0.11) | $ (9.74) | $ (1.21) |
Weighted average number of ordinary shares used in the determination of earnings and loss per share | |||||||||||
Basic (in shares) | 36,121,023 | 36,841,623 | 36,100,665 | 35,972,665 | 35,952,472 | 35,952,472 | 36,952,472 | 37,087,169 | 36,079,419 | 35,951,659 | 37,002,260 |
Diluted (in shares) | 36,121,023 | 36,921,490 | 36,829,963 | 36,364,358 | 35,952,472 | 35,952,472 | 36,952,472 | 37,087,169 | 36,079,419 | 35,951,659 | 37,002,260 |
SCHEDULE I SUMMARY OF INVESTM_2
SCHEDULE I SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Thousands | Dec. 31, 2019USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | $ 10,420 |
Fair Value | 16,384 |
Balance Sheet Value | 16,384 |
AccuRisk Holdings LLC | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Fair Value | 5,703 |
Balance Sheet Value | 5,703 |
Private investments and unlisted equities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 10,420 |
Fair Value | 10,681 |
Balance Sheet Value | 10,681 |
Total other investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 10,420 |
Fair Value | 16,384 |
Balance Sheet Value | $ 16,384 |
SCHEDULE II CONDENSED FINANCI_3
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Other investments | $ 16,384 | $ 11,408 |
Cash and cash equivalents | 25,813 | 18,215 |
Investment in subsidiaries | 240,056 | 235,612 |
Notes receivable (net of valuation allowance) | 20,202 | 26,861 |
Total assets | 1,355,193 | 1,435,445 |
Liabilities | ||
Convertible senior notes payable | 93,514 | 91,185 |
Other liabilities | 6,825 | 5,067 |
Total liabilities | 878,010 | 955,981 |
Equity | ||
Share capital | 3,699 | 3,638 |
Additional paid-in capital | 503,547 | 499,726 |
Retained earnings (deficit) | (30,063) | (26,077) |
Shareholders’ equity attributable to Greenlight Capital Re, Ltd. | 477,183 | 477,287 |
Total liabilities, redeemable non-controlling interest and equity | 1,355,193 | 1,435,445 |
Parent Company | ||
Assets | ||
Other investments | 1,000 | 800 |
Cash and cash equivalents | 2 | 3 |
Investment in subsidiaries | 557,835 | 553,323 |
Notes receivable (net of valuation allowance) | 10,469 | 21,965 |
Due from subsidiaries | 8,200 | 0 |
Total assets | 577,506 | 576,091 |
Liabilities | ||
Convertible senior notes payable | 93,514 | 91,185 |
Other liabilities | 1,611 | 0 |
Due to subsidiaries | 5,198 | 7,619 |
Total liabilities | 100,323 | 98,804 |
Equity | ||
Share capital | 3,699 | 3,638 |
Additional paid-in capital | 503,547 | 499,726 |
Retained earnings (deficit) | (30,063) | (26,077) |
Shareholders’ equity attributable to Greenlight Capital Re, Ltd. | 477,183 | 477,287 |
Total liabilities, redeemable non-controlling interest and equity | $ 577,506 | $ 576,091 |
SCHEDULE II CONDENSED FINANCI_4
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||||||||||
Net investment income (loss) [net of related party expenses of $0, $11,221 and $19,863, respectively] | $ (3,054) | $ 3,312 | $ 4,386 | $ 1,567 | $ (5,810) | $ (70,851) | $ (40,656) | $ (145,216) | $ 6,211 | $ (262,533) | $ 20,231 |
Total revenues | 100,862 | 138,188 | 140,349 | 158,754 | 62,259 | 32,545 | 88,084 | 141 | 538,153 | 183,029 | 645,675 |
Expenses | |||||||||||
General and administrative expenses | 7,338 | 7,725 | 7,919 | 6,840 | 5,123 | 7,136 | 6,958 | 5,956 | 29,822 | 25,173 | 26,356 |
Interest expense | 1,579 | 1,578 | 1,562 | 1,544 | 1,578 | 927 | 0 | 0 | 6,263 | 2,505 | 0 |
Interest and Debt Expense | 2,329 | 2,505 | 0 | ||||||||
Total expenses | 130,525 | 133,227 | 125,129 | 152,775 | 141,467 | 123,174 | 126,396 | 145,989 | 541,656 | 537,026 | 690,500 |
Net income (loss) before equity in earnings of consolidated subsidiaries | (79,208) | (90,629) | (38,312) | (145,848) | |||||||
Equity in earnings of consolidated subsidiaries | 700 | (247) | 0 | ||||||||
Net income (loss) attributable to Greenlight Capital Re, Ltd. | $ (30,346) | $ 5,140 | $ 15,314 | $ 5,906 | $ (80,819) | $ (89,115) | $ (37,368) | $ (142,752) | (3,986) | (350,054) | (44,952) |
Parent Company | |||||||||||
Revenues | |||||||||||
Net investment income (loss) [net of related party expenses of $0, $11,221 and $19,863, respectively] | 522 | 1,574 | 34,487 | ||||||||
Total revenues | 522 | 1,574 | 34,487 | ||||||||
Expenses | |||||||||||
General and administrative expenses | 6,496 | 4,445 | 4,691 | ||||||||
Interest expense | 6,263 | 2,505 | 0 | ||||||||
Interest and Debt Expense | 2,329 | 2,505 | 0 | ||||||||
Total expenses | 12,759 | 6,950 | 4,691 | ||||||||
Net income (loss) before equity in earnings of consolidated subsidiaries | (12,237) | (5,376) | 29,796 | ||||||||
Equity in earnings of consolidated subsidiaries | 8,251 | (344,678) | (74,748) | ||||||||
Net income (loss) attributable to Greenlight Capital Re, Ltd. | $ (3,986) | $ (350,054) | $ (44,952) |
SCHEDULE II CONDENSED FINANCI_5
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash provided by (used in) operating activities | |||||||||||
Net income (loss) | $ (30,346) | $ 5,140 | $ 15,314 | $ 5,906 | $ (80,819) | $ (89,115) | $ (37,368) | $ (142,752) | $ (3,986) | $ (350,054) | $ (44,952) |
Adjustments to reconcile net income or loss to net cash provided by (used in) operating activities | |||||||||||
Equity in earnings of consolidated subsidiaries | (700) | 247 | 0 | ||||||||
Net change in unrealized gains and losses on investments | (8,380) | 32,597 | 41,444 | ||||||||
Share-based compensation expense | 3,882 | 4,624 | 4,853 | ||||||||
Amortization and interest expense | 2,329 | 2,505 | 0 | ||||||||
Net change in | |||||||||||
Other liabilities | 1,758 | (5,346) | (4,114) | ||||||||
Net cash provided by (used in) operating activities | 1,631 | (59,308) | 94,419 | ||||||||
Investing activities | |||||||||||
Purchase of investments | (4,702) | (402,244) | (1,120,549) | ||||||||
Change in note receivable | 671 | 1,636 | 5,237 | ||||||||
Net cash provided by (used in) investing activities | 63,334 | (845,263) | 201,707 | ||||||||
Financing activities | |||||||||||
Net proceeds from issuance of convertible senior notes payable, net of costs | 0 | 96,576 | 0 | ||||||||
Repurchase of Class A ordinary shares | 0 | (16,503) | (2,819) | ||||||||
Net cash provided by (used in) financing activities | 0 | 80,073 | (2,819) | ||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 64,675 | (827,867) | 288,589 | ||||||||
Cash, cash equivalents and restricted cash at beginning of the period (see Note 2) | 703,231 | 1,531,098 | 703,231 | 1,531,098 | 1,242,509 | ||||||
Cash, cash equivalents and restricted cash at end of the period (see Note 2) | 767,906 | 703,231 | 767,906 | 703,231 | 1,531,098 | ||||||
Parent Company | |||||||||||
Cash provided by (used in) operating activities | |||||||||||
Net income (loss) | (3,986) | (350,054) | (44,952) | ||||||||
Adjustments to reconcile net income or loss to net cash provided by (used in) operating activities | |||||||||||
Equity in earnings of consolidated subsidiaries | (8,251) | 344,678 | 74,748 | ||||||||
Net change in unrealized gains and losses on investments | (200) | 0 | 0 | ||||||||
Share-based compensation expense | 3,686 | 4,382 | 4,691 | ||||||||
Amortization and interest expense | 2,329 | 2,505 | 0 | ||||||||
Net change in | |||||||||||
Due from subsidiaries | (8,200) | 876 | (876) | ||||||||
Other liabilities | 1,611 | 0 | 0 | ||||||||
Due from subsidiaries | (2,421) | 7,619 | (29,023) | ||||||||
Net cash provided by (used in) operating activities | (15,432) | 10,006 | 4,588 | ||||||||
Investing activities | |||||||||||
Purchase of investments | 0 | (800) | 0 | ||||||||
Change in note receivable | 11,496 | (6,610) | (191) | ||||||||
Contributed surplus to subsidiaries, net | 3,935 | (82,750) | (1,500) | ||||||||
Net cash provided by (used in) investing activities | 15,431 | (90,160) | (1,691) | ||||||||
Financing activities | |||||||||||
Net proceeds from issuance of convertible senior notes payable, net of costs | 0 | 96,576 | 0 | ||||||||
Repurchase of Class A ordinary shares | 0 | (16,503) | (2,819) | ||||||||
Net cash provided by (used in) financing activities | 0 | 80,073 | (2,819) | ||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (1) | (81) | 78 | ||||||||
Cash, cash equivalents and restricted cash at beginning of the period (see Note 2) | $ 3 | $ 84 | 3 | 84 | 6 | ||||||
Cash, cash equivalents and restricted cash at end of the period (see Note 2) | $ 2 | $ 3 | 2 | 3 | 84 | ||||||
Supplementary information | |||||||||||
Non cash consideration from (to) subsidiaries, net | $ (196) | $ (242) | $ (162) |
SCHEDULE III SUPPLEMENTARY IN_2
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |||
Deferred acquisition costs, net | $ 49,665 | $ 49,929 | $ 62,350 |
Reserves for losses and loss adjustment expenses – gross | 470,588 | 482,662 | 464,380 |
Unearned premiums – gross | 179,460 | 211,789 | 255,818 |
Net premiums earned | 483,580 | 508,363 | 626,004 |
Total investment related income (loss) | 52,267 | (323,106) | 20,231 |
Net losses, and loss adjustment expenses | 388,487 | 363,873 | 502,404 |
Amortization of deferred acquisition costs | 117,084 | 145,475 | 161,740 |
Other operating expenses | 29,822 | 25,173 | 26,356 |
Gross premiums written | $ 523,977 | $ 567,531 | $ 692,651 |
SCHEDULE IV SUPPLEMENTARY REI_2
SCHEDULE IV SUPPLEMENTARY REINSURANCE INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||||||||
Premiums ceded to other companies | $ 90 | $ 4,035 | $ 23,141 | $ 21,401 | $ 30,252 | $ 15,456 | $ 27,237 | $ 29,843 | $ 48,667 | $ 102,788 | $ 56,587 |
Premiums assumed from other companies | 98,470 | 110,607 | 152,340 | 162,560 | 135,143 | 115,154 | 142,109 | 175,125 | 523,977 | 567,531 | 692,651 |
Net premiums written | $ 98,380 | $ 106,572 | $ 129,199 | $ 141,159 | $ 104,891 | $ 99,698 | $ 114,872 | $ 145,282 | 475,310 | 464,743 | 636,064 |
Property & Casualty | |||||||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||||||||
Direct gross premiums | 0 | 0 | 0 | ||||||||
Premiums ceded to other companies | 48,667 | 102,788 | 56,587 | ||||||||
Premiums assumed from other companies | 523,977 | 567,531 | 692,651 | ||||||||
Net premiums written | $ 475,310 | $ 464,743 | $ 636,064 | ||||||||
Percentage of amount assumed to net | 110.00% | 122.00% | 109.00% |