Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 04, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Registrant Name | GLOBAL INDEMNITY GROUP, LLC | |
Entity Central Index Key | 0001494904 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-34809 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-2619578 | |
Entity Address, Address Line One | 112 S. French Street | |
Entity Address, Address Line Two | Suite 105 | |
Entity Address, City or Town | Wilmington | |
Entity Address, Country | DE | |
Entity Address, Postal Zip Code | 19801 | |
City Area Code | 302 | |
Local Phone Number | 691-6276 | |
Title of each class | Class A Common Shares | |
Trading Symbol | GBLI | |
Name of each exchange on which registered | NYSE | |
Class A Common Shares | ||
Document Information [Line Items] | ||
Entity Ordinary Shares, Shares Outstanding | 9,729,046 | |
Class B Common Shares | ||
Document Information [Line Items] | ||
Entity Ordinary Shares, Shares Outstanding | 3,793,612 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fixed maturities: | ||
Available for sale, at fair value (amortized cost: $1,311,567 and $1,301,723; net of allowance for expected credit losses of $0 at June 30, 2023 and December 31, 2022) | $ 1,265,606 | $ 1,248,198 |
Equity securities, at fair value | 17,153 | 17,520 |
Other invested assets | 37,282 | 38,176 |
Total investments | 1,320,041 | 1,303,894 |
Cash and cash equivalents | 45,447 | 38,846 |
Premium receivables, net of allowance for expected credit losses of $4,056 at June 30, 2023 and $3,322 at December 31, 2022 | 141,498 | 168,743 |
Reinsurance receivables, net of allowance for expected credit losses of $8,992 at June 30, 2023 and December 31, 2022 | 95,616 | 85,721 |
Funds held by ceding insurers | 16,660 | 19,191 |
Deferred federal income taxes | 42,679 | 47,099 |
Deferred acquisition costs | 52,019 | 64,894 |
Intangible assets | 14,633 | 14,810 |
Goodwill | 4,820 | 4,820 |
Prepaid reinsurance premiums | 10,626 | 17,421 |
Lease right of use assets | 10,790 | 11,739 |
Other assets | 19,173 | 23,597 |
Total assets | 1,774,002 | 1,800,775 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 866,951 | 832,404 |
Unearned premiums | 215,187 | 269,353 |
Ceded balances payable | 3,844 | 17,241 |
Payable for securities purchased | 22,115 | 66 |
Contingent commissions | 3,431 | 8,816 |
Lease liabilities | 14,194 | 15,701 |
Other liabilities | 21,872 | 30,965 |
Total liabilities | 1,147,594 | 1,174,546 |
Commitments and contingencies (Note 11) | ||
Shareholders’ equity: | ||
Common shares: no par value; 900,000,000 common shares authorized; class A common shares issued: 11,000,287 and 10,876,041 respectively; class A common shares outstanding: 9,729,046 and 10,073,660, respectively; class B common shares issued and outstanding: 3,793,612 and 3,793,612, respectively | 0 | 0 |
Additional paid-in capital | 453,427 | 451,305 |
Accumulated other comprehensive income (loss), net of tax | (37,171) | (43,058) |
Retained earnings | 238,315 | 233,468 |
Total shareholders’ equity | 626,408 | 626,229 |
Total liabilities and shareholders’ equity | 1,774,002 | 1,800,775 |
Series A Cumulative Fixed Rate Preferred Shares | ||
Shareholders’ equity: | ||
Series A cumulative fixed rate preferred shares, $1,000 par value; 100,000,000 shares authorized, shares issued and outstanding: 4,000 and 4,000 shares, respectively, liquidation preference: $1,000 per share and $1,000 per share, respectively | 4,000 | 4,000 |
Class A Common Shares | ||
Shareholders’ equity: | ||
Class A common shares in treasury, at cost: 1,271,241 and 802,381 shares,respectively | $ (32,163) | $ (19,486) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Available for sale, amortized cost | $ 1,311,567 | $ 1,301,723 |
Available-for-sale, net of allowance for expected credit losses | 0 | 0 |
Premiums receivable, allowance for expected credit loss | 4,056 | 3,322 |
Reinsurance receivable, allowance for expected credit loss | $ 8,992 | $ 8,992 |
Common shares, par value | $ 0 | $ 0 |
Common shares, shares authorized | 900,000,000 | 900,000,000 |
Series A Cumulative Fixed Rate Preferred Shares | ||
Preferred shares, par value | $ 1,000 | $ 1,000 |
Preferred shares, shares authorized | 100,000,000 | 100,000,000 |
Preferred shares, shares issued | 4,000 | 4,000 |
Preferred shares, shares outstanding | 4,000 | 4,000 |
Preferred shares, liquidation preference | $ 1,000 | $ 1,000 |
Class A Common Shares | ||
Common shares, shares issued | 11,000,287 | 10,876,041 |
Common shares, shares outstanding | 9,729,046 | 10,073,660 |
Treasury shares, shares | 1,271,241 | 802,381 |
Class B Common Shares | ||
Common shares, shares issued | 3,793,612 | 3,793,612 |
Common shares, shares outstanding | 3,793,612 | 3,793,612 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Revenues: | |||||
Gross written premiums | $ 110,100 | $ 196,823 | $ 233,085 | $ 387,806 | |
Ceded written premiums | (4,104) | (29,665) | (11,228) | (61,166) | |
Net written premiums | 105,996 | 167,158 | 221,857 | 326,640 | |
Change in net unearned premiums | 23,160 | (11,409) | 47,371 | (22,068) | |
Net earned premiums | 129,156 | 155,749 | 269,228 | 304,572 | |
Net investment income | 13,216 | 1,930 | 25,224 | 8,522 | |
Net realized investment losses | (761) | (9,916) | (2,281) | (35,301) | |
Other income | 282 | 97 | 636 | 523 | |
Total revenues | 141,893 | 147,860 | 292,807 | 278,316 | |
Losses and Expenses: | |||||
Net losses and loss adjustment expenses | 78,082 | 92,618 | 166,083 | 177,313 | |
Acquisition costs and other underwriting expenses | 47,101 | 61,098 | 100,579 | 117,790 | |
Corporate and other operating expenses | 4,990 | 2,993 | 11,358 | 7,653 | |
Interest expense | 12 | 410 | 12 | 3,005 | |
Loss on extinguishment of debt | 0 | 3,529 | 0 | 3,529 | |
Income (loss) before income taxes | 11,708 | (12,788) | 14,775 | (30,974) | |
Income tax expense (benefit) | 2,371 | (626) | 2,944 | (4,039) | |
Net income (loss) | 9,337 | (12,162) | 11,831 | (26,935) | |
Less: preferred stock distributions | 110 | 110 | 220 | 220 | |
Net income (loss) available to common shareholders | $ 9,227 | $ (12,272) | $ 11,611 | $ (27,155) | |
Net income (loss) available to common shareholders | |||||
Basic | [1] | $ 0.68 | $ (0.84) | $ 0.86 | $ (1.87) |
Diluted | [1] | $ 0.67 | $ (0.84) | $ 0.84 | $ (1.87) |
Weighted-average number of shares outstanding | |||||
Basic | 13,478,014 | 14,543,234 | 13,573,841 | 14,529,170 | |
Diluted | [2] | 13,707,984 | 14,543,234 | 13,794,221 | 14,529,170 |
Cash distributions declared per common share | $ 0.25 | $ 0.25 | $ 0.5 | $ 0.5 | |
[1] For the quarter and six months ended June 30, 2022 , “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period. For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 9,337 | $ (12,162) | $ 11,831 | $ (26,935) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized holding gains (losses) | (3,077) | (21,503) | 5,080 | (63,876) |
Reclassification adjustment for losses included in net income (loss) | 479 | 7,877 | 966 | 30,962 |
Unrealized foreign currency translation gains (losses) | 42 | (227) | (159) | (115) |
Other comprehensive income (loss), net of tax | (2,556) | (13,853) | 5,887 | (33,029) |
Comprehensive income (loss), net of tax | $ 6,781 | $ (26,015) | $ 17,718 | $ (59,964) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss), Net of Deferred Income Tax | Retained Earnings | Treasury Stock Common | Class A Common Shares Common Stock | Class A Common Shares Treasury Stock Common | Series A Cumulative Fixed Rate Preferred Shares Preferred Stock | Class B Common Shares Common Stock |
Number at Dec. 31, 2021 | 10,574,589 | 17,496 | 4,000 | 3,947,206 | |||||
Class A common shares purchased | 15,954 | ||||||||
Common shares issued under share incentive plans, net of forfeitures | 50,598 | ||||||||
Common shares issued to directors | 50,570 | ||||||||
Number at Jun. 30, 2022 | 10,675,757 | 33,450 | 4,000 | 3,947,206 | |||||
Balance at Dec. 31, 2021 | $ 447,406 | $ 6,404 | $ 249,301 | $ (490) | $ 4,000 | ||||
Class A common shares purchased, at cost | $ (414) | ||||||||
Other comprehensive income (loss): | |||||||||
Change in unrealized holding gains (losses) | (32,914) | ||||||||
Unrealized foreign currency translation gains (losses) | $ (115) | (115) | |||||||
Other comprehensive income (loss), net of tax | (33,029) | (33,029) | |||||||
Net income (loss) | (26,935) | (26,935) | |||||||
Preferred share distributions | (220) | (220) | |||||||
Dividends/ Distribution to shareholders | (7,389) | ||||||||
Share compensation plans | 2,646 | ||||||||
Balance at Jun. 30, 2022 | 641,280 | 450,052 | (26,625) | 214,757 | (904) | $ 4,000 | |||
Number at Mar. 31, 2022 | 10,614,555 | 22,277 | 4,000 | 3,947,206 | |||||
Class A common shares purchased | 11,173 | ||||||||
Common shares issued under share incentive plans, net of forfeitures | 35,442 | ||||||||
Common shares issued to directors | 25,760 | ||||||||
Number at Jun. 30, 2022 | 10,675,757 | 33,450 | 4,000 | 3,947,206 | |||||
Balance at Mar. 31, 2022 | 448,266 | (12,772) | 230,771 | (610) | $ 4,000 | ||||
Class A common shares purchased, at cost | $ (294) | ||||||||
Other comprehensive income (loss): | |||||||||
Change in unrealized holding gains (losses) | (13,626) | ||||||||
Unrealized foreign currency translation gains (losses) | (227) | (227) | |||||||
Other comprehensive income (loss), net of tax | (13,853) | (13,853) | |||||||
Net income (loss) | (12,162) | (12,162) | |||||||
Preferred share distributions | (110) | (110) | |||||||
Dividends/ Distribution to shareholders | (3,742) | ||||||||
Share compensation plans | 1,786 | ||||||||
Balance at Jun. 30, 2022 | 641,280 | 450,052 | (26,625) | 214,757 | (904) | $ 4,000 | |||
Number at Dec. 31, 2022 | 10,876,041 | 802,381 | 4,000 | 3,793,612 | |||||
Class A common shares purchased | 468,860 | ||||||||
Common shares issued under share incentive plans, net of forfeitures | 75,541 | ||||||||
Common shares issued to directors | 48,705 | ||||||||
Number at Jun. 30, 2023 | 11,000,287 | 1,271,241 | 4,000 | 3,793,612 | |||||
Balance at Dec. 31, 2022 | 626,229 | 451,305 | (43,058) | 233,468 | (19,486) | $ 4,000 | |||
Class A common shares purchased, at cost | $ (12,677) | ||||||||
Other comprehensive income (loss): | |||||||||
Change in unrealized holding gains (losses) | 6,046 | ||||||||
Unrealized foreign currency translation gains (losses) | (159) | (159) | |||||||
Other comprehensive income (loss), net of tax | 5,887 | 5,887 | |||||||
Net income (loss) | 11,831 | 11,831 | |||||||
Preferred share distributions | (220) | (220) | |||||||
Dividends/ Distribution to shareholders | (6,764) | ||||||||
Share compensation plans | 2,122 | ||||||||
Balance at Jun. 30, 2023 | 626,408 | 453,427 | (37,171) | 238,315 | (32,163) | $ 4,000 | |||
Number at Mar. 31, 2023 | 10,928,380 | 1,055,683 | 4,000 | 3,793,612 | |||||
Class A common shares purchased | 215,558 | ||||||||
Common shares issued under share incentive plans, net of forfeitures | 49,628 | ||||||||
Common shares issued to directors | 22,279 | ||||||||
Number at Jun. 30, 2023 | 11,000,287 | 1,271,241 | 4,000 | 3,793,612 | |||||
Balance at Mar. 31, 2023 | 452,385 | (34,615) | 232,506 | (26,038) | $ 4,000 | ||||
Class A common shares purchased, at cost | $ (6,125) | ||||||||
Other comprehensive income (loss): | |||||||||
Change in unrealized holding gains (losses) | (2,598) | ||||||||
Unrealized foreign currency translation gains (losses) | 42 | 42 | |||||||
Other comprehensive income (loss), net of tax | (2,556) | (2,556) | |||||||
Net income (loss) | 9,337 | 9,337 | |||||||
Preferred share distributions | (110) | (110) | |||||||
Dividends/ Distribution to shareholders | (3,418) | ||||||||
Share compensation plans | 1,042 | ||||||||
Balance at Jun. 30, 2023 | $ 626,408 | $ 453,427 | $ (37,171) | $ 238,315 | $ (32,163) | $ 4,000 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Retained Earnings | ||
Dividend payable, per share | $ 0.25 | $ 0.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 11,831 | $ (26,935) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization and depreciation | 3,342 | 3,265 |
Amortization of debt issuance costs | 0 | 41 |
Restricted stock and stock option expense | 2,122 | 2,646 |
Deferred federal income taxes | 2,944 | (4,039) |
Amortization of bond premium and discount, net | (1,725) | 1,628 |
Net realized investment losses | 2,281 | 35,301 |
Loss on extinguishment of debt | 0 | 3,529 |
Loss from equity method investments, net of distributions | 106 | 5,913 |
Changes in: | ||
Premium receivables, net | 27,245 | (33,515) |
Reinsurance receivables, net | (9,895) | (4,200) |
Funds held by ceding insurers | 2,330 | 3,905 |
Unpaid losses and loss adjustment expenses | 34,547 | 44,757 |
Unearned premiums | (54,166) | 20,111 |
Ceded balances payable | (13,397) | (20,585) |
Other assets and liabilities | (7,679) | (3,986) |
Contingent commissions | (5,385) | (1,575) |
Deferred acquisition costs | 12,875 | (9,758) |
Prepaid reinsurance premiums | 6,795 | 1,956 |
Net cash provided by operating activities | 14,171 | 18,459 |
Cash flows from investing activities: | ||
Proceeds from sale of fixed maturities | 96,890 | 829,205 |
Proceeds from sale of equity securities | 24 | 88,726 |
Proceeds from maturity of fixed maturities | 50,685 | 42,483 |
Proceeds from maturity of preferred stock | 270 | 0 |
Proceeds from other invested assets | 789 | 6,542 |
Amounts received in connection with derivatives | 0 | 4,490 |
Purchases of fixed maturities | (135,826) | (860,076) |
Purchases of equity securities | (28) | (10,376) |
Net cash provided by investing activities | 12,804 | 100,994 |
Cash flows from financing activities: | ||
Distributions paid to common shareholders | (7,477) | (7,255) |
Distributions paid to preferred shareholders | (220) | (220) |
Purchases of class A common shares | (12,677) | (414) |
Redemption of subordinated notes | 0 | (130,000) |
Net cash used for financing activities | (20,374) | (137,889) |
Net change in cash and cash equivalents | 6,601 | (18,436) |
Cash and cash equivalents at beginning of period | 38,846 | 78,278 |
Cash and cash equivalents at end of period | $ 45,447 | $ 59,842 |
Principles of Consolidation and
Principles of Consolidation and Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Basis of Presentation | 1. Principles of Consolidation and Basis of Presentation Global Indemnity Group, LLC (“Global Indemnity”, "GBLI", or “the Company”), a Delaware limited liability company formed on June 23, 2020 , replaced Global Indemnity Limited, incorporated in the Cayman Islands as an exempted company with limited liability, as the ultimate parent company of the Global Indemnity group of companies as a result of a redomestication transaction completed on August 28, 2020 . Global Indemnity Group, LLC’s class A common shares are publicly traded on the New York Stock Exchange under the ticker symbol GBLI. Global Indemnity Group, LLC’s predecessors have been publicly traded since 2003. See Note 2 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2022 Annual Report on Form 10-K for additional information regarding the redomestication. The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and six months ended June 30, 2023 and 2022 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2022 Annual Report on Form 10-K. The consolidated financial statements include the accounts of Global Indemnity Group, LLC and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 2. Restructuring The Company restructured its insurance operations to strengthen its market presence and enhance its focus on GBLI’s core Package Specialty and Targeted Specialty products. As a result, the Company exited its four brokerage divisions: Professional Liability, Excess Casualty, Environmental, and Middle Market Property. The Company ceased writing new business and existing renewals were placed in run-off for these four divisions. The restructuring plan, which was initiated in the fourth quarter of 2022 , was completed in the first quarter of 2023 . In connection with the restructuring plan, the Company incurred restructuring costs of $ 3.4 million during the fourth quarter of 2022 and $ 2.1 million during the six months ended June 30, 2023 for total restructuring costs of $ 5.5 million. The following table summarizes charges incurred by expense type and the remaining liability as of December 31, 2022 and June 30, 2023: (Dollars in thousands) Consolidated Statements of Operations Line Employee Termination Lease Right of Use Asset Impairment Total Charges incurred in 2022 Corporate and other operating expenses $ 2,635 $ — $ 2,635 Charges incurred in 2022 Acquisition costs and other underwriting expenses (1) — 812 812 Non-cash asset charges — ( 812 ) ( 812 ) Liability at December 31, 2022 2,635 — 2,635 Charges incurred in 2023 Corporate and other operating expenses 2,121 — 2,121 Cash payments in 2023 ( 4,249 ) — ( 4,249 ) Liability at June 30, 2023 $ 507 $ — $ 507 (1) These charges were recorded within the Company's Exited Line segment. Any information technology initiatives related to business lines within Exited Lines have been discontinued. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 3. Investments The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of June 30, 2023 and December 31, 2022: (Dollars in thousands) Amortized Allowance for Expected Credit Losses Gross Gross Estimated As of June 30, 2023 Fixed maturities: U.S. treasuries $ 396,451 $ — $ 12 $ ( 7,701 ) $ 388,762 Obligations of states and political subdivisions 32,272 — — ( 1,666 ) 30,606 Mortgage-backed securities 65,086 — 396 ( 4,816 ) 60,666 Asset-backed securities 212,095 — 186 ( 7,966 ) 204,315 Commercial mortgage-backed securities 86,313 — 21 ( 5,880 ) 80,454 Corporate bonds 343,600 — 102 ( 12,038 ) 331,664 Foreign corporate bonds 175,750 — 30 ( 6,641 ) 169,139 Total fixed maturities $ 1,311,567 $ — $ 747 $ ( 46,708 ) $ 1,265,606 (Dollars in thousands) Amortized Allowance for Expected Credit Losses Gross Gross Estimated As of December 31, 2022 Fixed maturities: U.S. treasuries $ 352,533 $ — $ — $ ( 8,430 ) $ 344,103 Obligations of states and political subdivisions 33,471 — — ( 1,876 ) 31,595 Mortgage-backed securities 67,560 — 165 ( 5,609 ) 62,116 Asset-backed securities 198,161 — 390 ( 9,151 ) 189,400 Commercial mortgage-backed securities 104,777 — 20 ( 6,133 ) 98,664 Corporate bonds 353,622 — 16 ( 14,858 ) 338,780 Foreign corporate bonds 191,599 — — ( 8,059 ) 183,540 Total fixed maturities $ 1,301,723 $ — $ 591 $ ( 54,116 ) $ 1,248,198 As of June 30, 2023 and December 31, 2022, the Company’s investments in equity securities consist of the following: (Dollars in thousands) June 30, 2023 December 31, 2022 Common stock $ 1,113 $ 1,271 Preferred stock 16,040 16,249 Total $ 17,153 $ 17,520 Excluding U.S. treasuries and limited partnerships, the Company did not hold any debt or equity investments in a single issuer in exc ess of 2.0 % and 2.4 % of shareholders' equity at June 30, 2023 and December 31, 2022, respectively. The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at June 30, 2023, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Estimated Due in one year or less $ 489,914 $ 483,894 Due in one year through five years 428,150 410,281 Due in five years through ten years 17,529 15,287 Due after fifteen years 12,480 10,709 Mortgage-backed securities 65,086 60,666 Asset-backed securities 212,095 204,315 Commercial mortgage-backed securities 86,313 80,454 Total $ 1,311,567 $ 1,265,606 The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of June 30, 2023. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 5. Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Gross Fair Value Gross Fair Value Gross Fixed maturities: U.S. treasuries $ 198,477 $ ( 3,953 ) $ 120,678 $ ( 3,748 ) $ 319,155 $ ( 7,701 ) Obligations of states and political subdivisions 7,810 ( 222 ) 19,795 ( 1,444 ) 27,605 ( 1,666 ) Mortgage-backed securities 16,354 ( 707 ) 33,913 ( 4,109 ) 50,267 ( 4,816 ) Asset-backed securities 91,904 ( 1,888 ) 95,269 ( 6,078 ) 187,173 ( 7,966 ) Commercial mortgage-backed securities 1,678 ( 69 ) 76,056 ( 5,811 ) 77,734 ( 5,880 ) Corporate bonds 74,010 ( 1,175 ) 230,601 ( 10,863 ) 304,611 ( 12,038 ) Foreign corporate bonds 23,100 ( 154 ) 119,948 ( 6,487 ) 143,048 ( 6,641 ) Total fixed maturities $ 413,333 $ ( 8,168 ) $ 696,260 $ ( 38,540 ) $ 1,109,593 $ ( 46,708 ) The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2022. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 5. Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Gross Fair Value Gross Fair Value Gross Fixed maturities: U.S. treasuries $ 335,781 $ ( 7,518 ) $ 8,322 $ ( 912 ) $ 344,103 $ ( 8,430 ) Obligations of states and political subdivisions 27,772 ( 1,378 ) 3,778 ( 498 ) 31,550 ( 1,876 ) Mortgage-backed securities 51,517 ( 4,228 ) 7,860 ( 1,381 ) 59,377 ( 5,609 ) Asset-backed securities 97,857 ( 3,610 ) 62,689 ( 5,541 ) 160,546 ( 9,151 ) Commercial mortgage-backed securities 67,926 ( 4,072 ) 27,907 ( 2,061 ) 95,833 ( 6,133 ) Corporate bonds 261,123 ( 8,480 ) 71,192 ( 6,378 ) 332,315 ( 14,858 ) Foreign corporate bonds 150,308 ( 5,469 ) 31,232 ( 2,590 ) 181,540 ( 8,059 ) Total fixed maturities $ 992,284 $ ( 34,755 ) $ 212,980 $ ( 19,361 ) $ 1,205,264 $ ( 54,116 ) The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each available for sale debt security in an unrealized loss position to assess whether the decline in fair value below amortized cost basis has resulted from a credit loss or other factors. In assessing whether a credit loss exists, the Company compares the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis of the security, a credit loss exists and an allowance for expected credit losses is recorded. Subsequent changes in the allowances are recorded in the period of change as either credit loss expense or reversal of credit loss expense. Any impairments related to factors other than credit losses and the intent to sell are recorded through other comprehensive income, net of taxes. For fixed maturities, the factors considered in reaching the conclusion that a credit loss exists include, among others, whether: (1) the extent to which the fair value is less than the amortized cost basis; (2) the issuer is in financial distress; (3) the investment is secured; (4) a significant credit rating action occurred; (5) scheduled interest payments were delayed or missed; (6) changes in laws or regulations have affected an issuer or industry; (7) the investment has an unrealized loss and was identified by the Company’s investment manager as an investment to be sold before recovery or maturity; (8) the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized; and (9) changes in US Treasury rates and/or credit spreads since original purchase to identify whether the unrealized loss is simply due to interest rate movement. According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met, any allowance for expected credit losses is written off and the amortized cost basis is written down to the fair value of the fixed maturity security with any incremental impairment reported in earnings. That new amortized cost basis shall not be adjusted for subsequent recoveries in fair value. The Company elected the practical expedient to exclude accrued interest from both the fair value and the amortized cost basis of the available for sale debt securities for the purposes of identifying and measuring an impairment and to not measure an allowance for expected credit losses for accrued interest receivables. Accrued interest receivable is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default on payment. The Company made an accounting policy election to present the accrued interest receivable balance with other assets on the Company’s consolidated statements of financial position. Accrued interest receivable related to fixed maturities was $ 8.3 million and $ 8.4 million as of June 30, 2023 and December 31, 2022 , respectively. The following is a description, by asset type, of the methodology and significant inputs that the Company used to measure the amount of credit loss recognized in earnings, if any: U.S. treasuries – As of June 30, 2023, gross unrealized losses related to U.S. treasuries were $ 7.701 million . To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, macroeconomic and market analysis is conducted in evaluating these securities. Consideration is given to the interest rate environment, duration and yield curve management of the portfolio, sector allocation and security selection. Based on the analysis performed, the Company did not recognize a credit loss on U.S. treasuries during the period. Obligations of states and political subdivisions – As of June 30, 2023, gross unrealized losses related to obligations of states and political subdivisions were $ 1.666 million . To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, elements that may influence the performance of the municipal bond market are considered in evaluating these securities such as investor expectations, supply and demand patterns, and current versus historical yield and spread relationships. The analysis relies on the output of fixed income credit analysts, as well as dedicated municipal bond analysts who perform extensive in-house fundamental analysis on each issuer, regardless of their rating by the major agencies. Based on the analysis performed, the Company did not recognize a credit loss on obligations of states and political subdivisions during the period. Mortgage-backed securities (“MBS”) – As of June 30, 2023, gross unrealized losses related to mortgage-backed securities were $ 4.816 million . To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, mortgage-backed securities are modeled to project principal losses under downside, base, and upside scenarios for the economy and home prices. The primary assumption that drives the security and loan level modeling is the Home Price Index (“HPI”) projection. These forecasts incorporate not just national macro-economic trends, but also regional impacts to arrive at the most granular and accurate projections. These assumptions are incorporated into the model as a basis to generate delinquency probabilities, default curves, loss severity curves, and voluntary prepayment curves at the loan level within each deal. The model utilizes HPI-adjusted current loan to value, payment history, loan terms, loan modification history, and borrower characteristics as inputs to generate expected cash flows and principal loss for each bond under various scenarios. Based on the analysis performed, the Company did not recognize a credit loss on mortgage-backed securities during the period. Asset backed securities (“ABS”) - As of June 30, 2023, gross unrealized losses related to asset backed securities were $ 7.966 million . The weighted average credit enhancement for the Company’s asset backed portfolio is 35.0 . This represents the percentage of pool losses that can occur before an asset backed security will incur its first dollar of principal losses. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, every ABS transaction is analyzed on a stand-alone basis. This analysis involves a thorough review of the collateral, prepayment, and structural risk in each transaction. Additionally, the analysis includes an in-depth credit analysis of the originator and servicer of the collateral. The analysis projects an expected loss for a deal given a set of assumptions specific to the asset type. These assumptions are used to calculate at what level of losses the deal will incur its first dollar of principal loss. The major assumptions used to calculate this ratio are loss severities, recovery lags, and no advances on principal and interest. Based on the analysis performed, the Company did not recognize a credit loss on asset backed securities during the period. Commercial mortgage-backed securities (“CMBS”) - As of June 30, 2023, gross unrealized losses related to the CMBS portfolio were $ 5.880 million . The weighted average credit enhancement for the Company’s CMBS portfolio is 46.9 . This represents the percentage of pool losses that can occur before a commercial mortgage-backed security will incur its first dollar of principal loss. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, a loan level analysis is utilized where every underlying CMBS loan is re-underwritten based on a set of assumptions reflecting expectations for the future path of the economy. Each loan is analyzed over time using a series of tests to determine if a credit event will occur during the life of the loan. Inherent in this process are several economic scenarios and their corresponding rent/vacancy and capital market states. The five primary credit events that frame the analysis include loan modifications, term default, balloon default, extension, and ability to pay off at balloon. The resulting output is the expected loss adjusted cash flows for each bond under the base case and distressed scenarios. Based on the analysis performed, the Company did not recognize a credit loss on commercial mortgage-backed securities during the period. Corporate bonds - As of June 30, 2023, gross unrealized losses related to corporate bonds were $ 12.038 million . To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, analysis for this asset class includes maintaining detailed financial models that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. Based on the analysis performed, the Company did not recognize a credit loss on corporate bonds during the period. Foreign bonds – As of June 30, 2023, gross unrealized losses related to foreign bonds were $ 6.641 million . To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, detailed financial models are maintained that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. Based on the analysis performed, the Company did not recognize a credit loss on foreign bonds during the period. The Company has evaluated its investment portfolio and has determined that an allowance for expected credit losses on its investments is not required. The Company recorded the following impairments on its investment portfolio for the quarters and six months ended June 30, 2023 and 2022 and are related to securities in an unrealized loss position where the Company had an intent to sell the securities: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 (1) 2023 2022 Fixed maturities: Impairment related to intent to sell — ( 680 ) — ( 26,205 ) Total $ — $ ( 680 ) $ — $ ( 26,205 ) (1) In response to a rising interest rate environment, the Company took action early in April 2022 to shorten the duration of its fixed maturities portfolio. In connection with these actions, the Company identified fixed maturities securities with a weighted average life of five years or greater as having an intent to sell resulting in other-than-temporary impairment losses. The majority of which were sold in the 2nd quarter of 2022. Most of the proceeds from the sale of these securities were reinvested into fixed income investments with maturities of two years . As a result of these actions, the Company's book yield rose over time. Book yield was approximately 2.2 % at December 31, 2021 and 3.8 % at June 30, 2023. Accumulated Other Comprehensive Income (Loss), Net of Tax Accumulated other comprehensive income, net of tax, as of June 30, 2023 and December 31, 2022 was as follows: (Dollars in thousands) June 30, 2023 December 31, 2022 Net unrealized gains (losses) from: Fixed maturities $ ( 45,961 ) $ ( 53,525 ) Foreign currency fluctuations ( 328 ) ( 127 ) Deferred taxes 9,118 10,594 Accumulated other comprehensive income (loss), net of tax $ ( 37,171 ) $ ( 43,058 ) The following tables present the changes in accumulated other comprehensive income, net of tax, by components, for the quarters and six months ended June 30, 2023 and 2022: Quarter Ended June 30, 2023 Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Beginning balance, net of tax $ ( 34,314 ) $ ( 301 ) $ ( 34,615 ) Other comprehensive income (loss) before reclassification, before tax ( 3,757 ) 53 ( 3,704 ) Amounts reclassified from accumulated other comprehensive income, before tax 587 — 587 Other comprehensive income (loss), before tax ( 3,170 ) 53 ( 3,117 ) Income tax (expense) benefit 572 ( 11 ) 561 Ending balance, net of tax $ ( 36,912 ) $ ( 259 ) $ ( 37,171 ) Quarter Ended June 30, 2022 Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Beginning balance, net of tax $ ( 12,769 ) $ ( 3 ) $ ( 12,772 ) Other comprehensive loss before reclassification, before tax ( 26,518 ) ( 287 ) ( 26,805 ) Amounts reclassified from accumulated other comprehensive income, before tax 9,317 — 9,317 Other comprehensive loss, before tax ( 17,201 ) ( 287 ) ( 17,488 ) Income tax benefit 3,575 60 3,635 Ending balance, net of tax $ ( 26,395 ) $ ( 230 ) $ ( 26,625 ) Six Months Ended June 30, 2023 Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Beginning balance, net of tax $ ( 42,958 ) $ ( 100 ) $ ( 43,058 ) Other comprehensive (loss) before reclassification, before tax 6,371 ( 201 ) 6,170 Amounts reclassified from accumulated other comprehensive income, before tax 1,193 — 1,193 Other comprehensive income (loss), before tax 7,564 ( 201 ) 7,363 Income tax (expense) benefit ( 1,518 ) 42 ( 1,476 ) Ending balance, net of tax $ ( 36,912 ) $ ( 259 ) $ ( 37,171 ) Six Months Ended June 30, 2022 Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Beginning balance, net of tax $ 6,519 $ ( 115 ) $ 6,404 Other comprehensive loss before reclassification, before tax ( 79,267 ) ( 146 ) ( 79,413 ) Amounts reclassified from accumulated other comprehensive income, before tax 38,081 — 38,081 Other comprehensive loss, before tax ( 41,186 ) ( 146 ) ( 41,332 ) Income tax benefit 8,272 31 8,303 Ending balance, net of tax $ ( 26,395 ) $ ( 230 ) $ ( 26,625 ) The reclassifications out of accumulated other comprehensive income for the quarters and six months ended June 30, 2023 and 2022 were as follows: Amounts Reclassified from (Dollars in thousands) Quarters Ended June 30, Details about Accumulated Other Affected Line Item in the Consolidated 2023 2022 Unrealized gains and losses on available for sale securities Other net realized investment (gains) losses $ 587 $ 8,637 Other than temporary impairment losses on investments — 680 Total before tax 587 $ 9,317 Income tax expense (benefit) ( 108 ) ( 1,440 ) Total reclassifications, net of tax $ 479 $ 7,877 Amounts Reclassified from (Dollars in thousands) Six Months Ended June 30, Details about Accumulated Other Affected Line Item in the Consolidated 2023 2022 Unrealized gains and losses on available for sale securities Other net realized investment (gains) losses $ 1,193 $ 11,876 Other than temporary impairment losses on investments — 26,205 Total before tax 1,193 $ 38,081 Income tax expense (benefit) ( 227 ) ( 7,119 ) Total reclassifications, net of tax $ 966 $ 30,962 Net Realized Investment Gains (Losses) The components of net realized investment gains (losses) for the quarters and six months ended June 30, 2023 and 2022 were as follows: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Fixed maturities: Gross realized gains $ 9 $ 456 $ 14 $ 662 Gross realized losses ( 596 ) ( 9,773 ) ( 1,207 ) ( 38,743 ) Net realized gains (losses) ( 587 ) ( 9,317 ) ( 1,193 ) ( 38,081 ) Equity securities: Gross realized gains 209 2 784 1,806 Gross realized losses ( 383 ) ( 2,417 ) ( 1,872 ) ( 5,566 ) Net realized gains (losses) ( 174 ) ( 2,415 ) ( 1,088 ) ( 3,760 ) Derivatives: Gross realized gains — 2,872 — 8,960 Gross realized losses — ( 1,056 ) — ( 2,420 ) Net realized gains (losses) (1) — 1,816 — 6,540 Total net realized investment gains (losses) $ ( 761 ) $ ( 9,916 ) $ ( 2,281 ) $ ( 35,301 ) (1) Includes periodic net interest settlements related to the derivatives of $ 1.1 million for the quarters ended June 30, 2022 and $ 2.5 million for the six months ended June 30, 2022. The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of June 30, 2023 and 2022: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Net gains (losses) recognized during the period on equity securities $ ( 174 ) $ ( 2,415 ) $ ( 1,088 ) $ ( 3,760 ) Less: net gains (losses) recognized during the period on equity securities sold during the period — ( 498 ) 18 10,616 Unrealized gains (losses) recognized during the reporting period on equity securities $ ( 174 ) $ ( 1,917 ) $ ( 1,106 ) $ ( 14,376 ) The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized inv estment gains (losses) for the six months ended June 30, 2023 and 2022 were as follows: Six Months Ended June 30, (Dollars in thousands) 2023 2022 Fixed maturities $ 96,890 $ 829,205 Equity securities 24 88,726 Net Investment Income The sources of net investment income for the quarters and six months ended June 30, 2023 and 2022 were as follows: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Fixed maturities $ 12,313 $ 7,467 $ 23,773 $ 13,871 Equity securities 257 275 447 609 Cash and cash equivalents 300 99 563 131 Other invested assets 697 ( 5,300 ) 1,164 ( 4,874 ) Total investment income 13,567 2,541 25,947 9,737 Investment expense ( 351 ) ( 611 ) ( 723 ) ( 1,215 ) Net investment income $ 13,216 $ 1,930 $ 25,224 $ 8,522 The Company’s total investment return on a pre-tax basis for the quarters and six months ended June 30, 2023 and 2022 were as follows: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Net investment income $ 13,216 $ 1,930 $ 25,224 $ 8,522 Net realized investment losses ( 761 ) ( 9,916 ) ( 2,281 ) ( 35,301 ) Change in unrealized holding gains (losses) ( 3,117 ) ( 17,488 ) 7,363 ( 41,332 ) Net realized and unrealized investment returns ( 3,878 ) ( 27,404 ) 5,082 ( 76,633 ) Total investment return $ 9,338 $ ( 25,474 ) $ 30,306 $ ( 68,111 ) Total investment return % (1) 0.7 % ( 1.8 %) 2.3 % ( 4.8 %) Average investment portfolio (2) $ 1,345,235 $ 1,395,519 $ 1,343,024 $ 1,429,227 (1) Not annualized. (2) Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period. As of June 30, 2023 and December 31, 2022, the Compa ny did no t own any fixed maturity securities that were non-income producing for the preceding twelve months. Insurance Enhanced Asset-Backed and Credit Securities As of June 30, 2023 , the Company held insurance enhanced municipal bonds with a market value of approximately $ 6.2 million which represented 0.5 % of the Company’s total cash and invested assets, net of payable/ receivable for securities purchased and sold. The financial guarantors of the Company’s $ 6.2 million municipal bonds include Assured Guaranty Corporation ($ 5.0 million ) and Ambac Financial Group ($ 1.2 million ). The Company had no direct investments in the entities that have provided financial guarantees or other credit support to any security held by the Company at June 30, 2023. Bonds Held on Deposit Certain cash and cash equivalents and bonds available for sale were deposited with various governmental authorities in accordance with statutory requirements, were held as collateral, or were held in trust. The fair values were as follows as of June 30, 2023 and December 31, 2022: Estimated Fair Value (Dollars in thousands) June 30, 2023 December 31, 2022 On deposit with governmental authorities $ 20,983 $ 19,290 Held in trust pursuant to third party requirements 164,845 161,901 Total (1) $ 185,828 $ 181,191 (1) Includes cash and cash equivalents of $ 9.3 million and $ 3.7 million at June 30, 2023 and December 31, 2022 , respectively, with the remainder related to bonds available for sale. Variable Interest Entities A Variable Interest Entity (“VIE”) refers to an investment in which an investor holds a controlling interest that is not based on the majority of voting rights. Under the VIE model, the party that has the power to exercise significant management influence and maintain a controlling financial interest in the entity’s economics is said to be the primary beneficiary, and is required to consolidate the entity within their results. Other entities that participate in a VIE, for which their financial interests fluctuate with changes in the fair value of the investment entity’s net assets but do not have significant management influence and the ability to direct the VIE’s significant economic activities are said to have a variable interest in the VIE but do not consolidate the VIE in their financial results. The Company has variable i nterests in two VIE’s for which it is not the primary beneficiary. These investments are accounted for under the equity method of accounting as their ownership interest exceeds 3 % of their respective investments. The carrying value of one of the Company’s VIE’s, which invests in distressed securities and assets, was $ 4.4 million and $ 4.8 million as of June 30, 2023 and December 31, 2022 , respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $ 18.6 million and $ 19.0 million at June 30, 2023 and December 31, 2022, respectively. The carrying value and maximum exposure to loss of a second VIE that invests in Real Estate Investment Trust (“REIT”) qualifying assets was $ 9.4 million and $ 9.8 million as of June 30, 2023 and December 31, 2022, respectively. The Company’s investment in VIEs is included i n other invested assets on the consolidated balance sheets with changes in carrying value recorded in the consolidated statements of operations. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 4. Derivative Instruments Derivatives were used by the Company to reduce risks from changes in interest rates and limit exposure to severe equity market changes. The Company used interest rate swaps with terms to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company has also used exchange-traded futures contracts, which give the holder the right and obligation to participate in market movements at a future date, to allow the Company to react faster to market conditions. When using derivatives, the Company posts collateral and settles variation margin in cash on a daily basis equal to the amount of the derivatives’ change in value. The Company accounts for the interest rate swaps and futures as non-hedge instruments and recognizes the fair value of the interest rate swaps in other assets or other liabilities on the consolidated balance sheets with the changes in fair value recognized as net realized investment gains or losses in the consolidated statements of operations. The Company is ultimately responsible for the valuation of the interest rate swaps. To aid in determining the estimated fair value of the interest rate swaps, the Company relies on the forward interest rate curve and information obtained from a third party financial institution. The following table summar izes the net gains included in the consolidated statements of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the quarters and six months ended June 30, 2023 and 2022: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) Consolidated Statements of Operations Line 2023 2022 2023 2022 Interest rate swap agreements Net realized investment gains (losses) $ — $ 1,816 $ — $ 6,540 Total $ — $ 1,816 $ — $ 6,540 The Company terminated its outstanding interest rate swaps in the fourth quarter of 2022 and was not utilizing interest rate swap agreements as of December 31, 2022. There are no outst anding amounts related to the interest rate swap agreements on the consolidated balance sheets as of June 30, 2023 or December 31, 2022 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements The accounting standards related to fair value measurements define fair value, establish a framework for measuring fair value, outline a fair value hierarchy based on inputs used to measure fair value, and enhance disclosure requirements for fair value measurements. These standards do not change existing guidance as to whether or not an instrument is carried at fair value. The Company has determined that its fair value measurements are in accordance with the requirements of these accounting standards. The Company’s invested assets are carried at their fair value and are categorized based upon a fair value hierarchy: • Level 1 – inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date. • Level 2 – inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly. • Level 3 – inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset. The following table presents information about the Company’s invested assets measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value Measurements As of June 30, 2023 Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasuries $ 388,762 $ — $ — $ 388,762 Obligations of states and political subdivisions — 30,606 — 30,606 Mortgage-backed securities — 59,717 949 60,666 Commercial mortgage-backed securities — 80,454 — 80,454 Asset-backed securities — 204,315 — 204,315 Corporate bonds — 329,939 1,725 331,664 Foreign corporate bonds — 169,139 — 169,139 Total fixed maturities 388,762 874,170 2,674 1,265,606 Equity securities — 16,040 1,113 17,153 Total assets measured at fair value $ 388,762 $ 890,210 $ 3,787 $ 1,282,759 Fair Value Measurements As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasuries $ 344,103 $ — $ — $ 344,103 Obligations of states and political subdivisions — 31,595 — 31,595 Mortgage-backed securities — 61,156 960 62,116 Commercial mortgage-backed securities — 98,664 — 98,664 Asset-backed securities — 189,073 327 189,400 Corporate bonds — 336,767 2,013 338,780 Foreign corporate bonds — 183,540 — 183,540 Total fixed maturities 344,103 900,795 3,300 1,248,198 Equity securities — 16,249 1,271 17,520 Total assets measured at fair value $ 344,103 $ 917,044 $ 4,571 $ 1,265,718 The securities classified as Level 1 in the above tables consist of U.S. treasuries actively traded on an exchange. The securities classified as Level 2 in the above tables consist primarily of fixed maturities, and equity securities. Based on the typical trading volumes and the lack of quoted market prices for fixed maturities, security prices are derived through recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information. If there are no recent reported trades, matrix or model processes are used to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Included in the pricing of asset-backed securities, collateralized mortgage obligations, and mortgage-backed securities are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment speeds previously experienced at the interest rate levels projected for the underlying collateral. The investments classified as Level 3 in the above table consist of fixed maturities and equity securities with unobservable inputs. The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the quarters and six months ended June 30, 2023 and 2022: Quarters Ended Six Months Ended (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 4,335 $ 4,288 $ 4,571 $ 2,769 Total gains (realized / unrealized): Included in accumulated other comprehensive income ( 3 ) 23 7 15 Included in earnings attributable to realized gains / losses ( 113 ) ( 102 ) ( 172 ) ( 170 ) Transfers into level 3 — 607 — 857 Amortization of bond premium and discount, net 2 2 4 2 Purchases 39 55 113 1,479 Sales ( 473 ) ( 523 ) ( 736 ) ( 602 ) Ending balance 3,787 4,350 3,787 4,350 Gains (losses) included in earnings attributable to the change in unrealized gains (losses) related to assets still held at end of reporting period $ ( 103 ) $ ( 9 ) $ ( 162 ) $ ( 14 ) Fair Value of Alternative Investments Other invested assets consist of limited partnerships whose carrying value approximates fair value. The following table provides the fair value and future funding commitments related to these investments at June 30, 2023 and December 31, 2022. June 30, 2023 December 31, 2022 (Dollars in thousands) Fair Value Future Funding Fair Value Future Funding European Non-Performing Loan Fund, LP (1) $ 4,406 $ 14,214 $ 4,832 $ 14,214 Mortgage Debt Fund, LP (2) 9,374 — 9,771 — Global Debt Fund, LP (3) 23,502 — 23,573 — Total $ 37,282 $ 14,214 $ 38,176 $ 14,214 (1) This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. (2) This limited partnership invests in REIT qualifying assets such as mortgage loans, investor property loans, and commercial mortgage loans. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. (3) This limited partnership invests in performing, stressed or distressed securities and loans across the global fixed income markets. The Company does have the contractual option to withdraw all or a portion of its limited partnership interest by providing notice to the fund. Limited Liability Companies and Limited Partnerships with ownership interest exceeding 3% The Company uses the equity method to account for investments in limited liability companies and limited partnerships where its ownership interest exceeds 3 %. The equity method of accounting for an investment in limited liability companies and limited partnerships requires that its cost basis be updated to account for the income or loss earned on the investment. In the Fair Value of Alternative Investm ents table above, all of the investments are booked on a one quarter lag due to non-availability of data at the time the financial statements are prepared. The investment income (loss) associated with the limited liability companies and limited partnerships whose ownership interest exceeds 3 % is reflected in the consolidated statements of operations in the amounts of $ 0.5 million and ($ 5.3 ) million for the quarters ended June 30, 2023 and 2022 , respectively, and $ 0.6 million and ($ 5.4 ) million for the six months ended June 30, 2023 and 2022, respectively. Pricing The Company’s pricing vendors provide prices for all investment categories except for investments in limited liability companies and limited partnerships. Two primary vendors are utilized to provide prices for equity and fixed maturity securities. The following is a description of the valuation methodologies used by the Company’s pricing vendors for investment securities carried at fair value: • Equity security prices are received from primary and secondary exchanges. • Corporate and agency bonds are evaluated by utilizing a spread to a benchmark curve. Bonds with similar characteristics are grouped into specific sectors. Inputs for both asset classes consist of trade prices, broker quotes, the new issue market, and prices on comparable securities. • Data from commercial vendors is aggregated with market information, then converted into an option adjusted spread (“OAS”) matrix and prepayment model used for collateralized mortgage obligations (“CMO”). CMOs are categorized with mortgage-backed securities in the tables listed above. For asset-backed securities, spread data is derived from trade prices, dealer quotations, and research reports. For both asset classes, evaluations utilize standard inputs plus new issue data, and collateral performance. The evaluated pricing models incorporate cash flows, broker quotes, market trades, historical prepayment speeds, and dealer projected speeds. • For obligations of state and political subdivisions, an attribute-based modeling system is used. The pricing model incorporates trades, market clearing yields, market color, and fundamental credit research. • U.S. treasuries are evaluated by obtaining feeds from a number of live data sources including primary and secondary dealers as well as inter-dealer brokers. • For mortgage-backed securities, various external analytical products are utilized and purchased from commercial vendors. The Company performs certain procedures to validate whether the pricing information received from the pricing vendors is reasonable, to ensure that the fair value determination is consistent with accounting guidance, and to ensure that its assets are properly classified in the fair value hierarchy. The Company’s procedures include, but are not limited to: • Reviewing periodic reports provided by the Investment Manager that provides information regarding rating changes and securities placed on watch. This procedure allows the Company to understand why a particular security’s market value may have changed or may potentially change. • Understanding and periodically evaluating the various pricing methods and procedures used by the Company’s pricing vendors to ensure that investments are properly classified within the fair value hierarchy. • On a quarterly basis, the Company corroborates investment security prices received from its pricing vendors by obtaining pricing from a second pricing vendor for a sample of securities. During the quarters and six months ended June 30, 2023 and 2022, the Company has not adjuste d quotes or prices obtained from the pricing vendors. |
Allowance for Expected Credit L
Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables | 6 Months Ended |
Jun. 30, 2023 | |
Allowance for Credit Loss [Abstract] | |
Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables | 6. Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables For premium receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, direct placement with collection agencies, solvency of insured or agent, terminated agents, and other relevant factors. The following table is an analysis of the allowance for expected credit losses related to the Company's premium receivables for the quarters and six months ended June 30, 2023 and 2022: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 3,379 $ 2,937 $ 3,322 $ 2,996 Current period provision for expected credit losses 1,369 536 1,717 619 Write-offs ( 692 ) ( 554 ) ( 983 ) ( 696 ) Ending balance $ 4,056 $ 2,919 $ 4,056 $ 2,919 For reinsurance receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, disputes, applicable coverage defenses, insolvent reinsurers, financial strength of solvent reinsurers based on AM Best Ratings and other relevant factors. The following table is an analysis of the allowance for expected credit losses related to the Company's reinsurance receivables for the quarters and six months ended June 30, 2023 and 2022: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 8,992 $ 8,992 $ 8,992 $ 8,992 Current period provision for expected credit losses — — — — Write-offs — — — — Recoveries of amounts previously written off — — — — Ending balance $ 8,992 $ 8,992 $ 8,992 $ 8,992 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes Global Indemnity Group, LLC is a publicly traded partnership for U.S. federal income tax purposes and meets the qualifying income exception to maintain partnership status. As a publicly traded partnership, Global Indemnity Group, LLC is generally not subject to federal income tax and most state income taxes. However, income earned by the subsidiaries of Global Indemnity Group, LLC is subject to corporate tax in the United States and certain foreign jurisdictions. As of June 30, 2023 , the statutory income tax rates of the countries where the Company conducts business are 21 % in the United States, 0 % in Bermuda, and 25 % on non-trading income, 33 % on capital gains and 12.5 % on trading income in the Republic of Ireland. The statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense. The Company’s income (loss) before income taxes is derived from its U.S. subsidiaries for the quarters and six months ended June 30, 2023 and 2022. The following table summarizes the components of income tax expense (benefit): Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Deferred income tax expense (benefit): U.S. Federal $ 2,371 $ ( 626 ) $ 2,944 $ ( 4,039 ) Total deferred income tax expense (benefit) 2,371 ( 626 ) 2,944 ( 4,039 ) Total income tax expense (benefit) $ 2,371 $ ( 626 ) $ 2,944 $ ( 4,039 ) The weighted average expected tax provision has been calculated using income (loss) before income taxes in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate: Quarters Ended June 30, 2023 2022 (Dollars in thousands) Amount % of Pre- Amount % of Pre- Expected tax provision at weighted average tax rate $ 2,459 21.0 % $ ( 2,686 ) 21.0 % Adjustments: Dividend exclusion ( 21 ) ( 0.2 ) ( 24 ) 0.2 Parent income treated as partnership for tax ( 146 ) ( 1.2 ) 1,827 ( 14.3 ) Other 79 0.7 257 ( 2.0 ) Effective income tax expense (benefit) $ 2,371 20.3 % $ ( 626 ) 4.9 % The effective income tax expense rate for the quarter ended June 30, 2023 was 20.3 % compared to an effective income tax benefit rate of 4.9 % for the quarter ended June 30, 2022. The difference between 2023 and 2022 is primarily due to a change in income or loss at the parent company which is treated as a partnership for tax. Six Months Ended June 30, 2023 2022 (Dollars in thousands) Amount % of Pre- Amount % of Pre- Expected tax provision at weighted average tax rate $ 3,103 21.0 % $ ( 6,505 ) 21.0 % Adjustments: Dividend exclusion ( 38 ) ( 0.3 ) ( 46 ) 0.1 Parent (income) loss treated as partnership for tax ( 342 ) ( 2.3 ) 2,070 ( 6.7 ) Other 221 1.5 442 ( 1.4 ) Effective income tax expense (benefit) $ 2,944 19.9 % $ ( 4,039 ) 13.0 % The effective income tax expense rate for the six months ended June 30, 2023 was 19.9 % compared to an effective income tax benefit rate of 13.0 % for the six months ended June 30, 2022. The difference between 2023 and 2022 is primarily due to a change in income or loss at the parent company which is treated as a partnership for tax. The Company has a net operating loss (“NOL”) carryforward of $ 98.1 million as of June 30, 2023, which begins to expire in 2036 based on when the original NOL was generated. The Company’s NOL carryforward as of December 31, 2022 was $ 116.4 million. The Company did no t h ave any Section 163(j) ("163(j)") carryforward as of June 30, 2023 or December 31, 2022 . The 163(j) carryforward relates to the limitation on the deduction for business interest expense paid or accrued. |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | 8. Liability for Unpaid Losses and Loss Adjustment Expenses Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Balance at beginning of period $ 857,520 $ 770,332 $ 832,404 $ 759,904 Less: Ceded reinsurance receivables 73,665 93,194 73,021 94,443 Net balance at beginning of period 783,855 677,138 759,383 665,461 Incurred losses and loss adjustment expenses related to: Current year 78,031 96,189 166,032 183,947 Prior years 51 ( 3,571 ) 51 ( 6,634 ) Total incurred losses and loss adjustment expenses 78,082 92,618 166,083 177,313 Paid losses and loss adjustment expenses related to: Current year 24,565 29,079 34,184 42,394 Prior years 44,354 30,201 98,264 89,904 Total paid losses and loss adjustment expenses 68,919 59,280 132,448 132,298 Net balance at end of period 793,018 710,476 793,018 710,476 Plus: Ceded reinsurance receivables 73,933 94,185 73,933 94,185 Balance at end of period $ 866,951 $ 804,661 $ 866,951 $ 804,661 When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates. During the second quarter of 2023, the Company's increased its prior accident year loss reserves by $ 0.1 million , which consisted of a $ 5.0 million increase related to Commercial Specialty, a $ 1.0 million increase related to Reinsurance Operations, and a $ 5.9 million decrease related to Exited Lines. The $ 5.0 million increase in prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • Property: A $ 1.0 m illion decrease primarily recognizes lower than expected claims severity in the 2020 and 2022 accident years, partially offset by increases in the 2015 accident year. • General Liability: A $ 6.1 million increase primarily recognizes higher than expected claims severity in the 2017 through 2022 accident years partially offset by decreases in accident years prior to 2006 primarily related to construction defect. The $ 1.0 million increase of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following: • Professional: A $ 1.1 million increase in the 2022 accident year recognizes higher prior accident year case incurred emergence than expected. • General Liability: A $ 0.1 m illion decrease based on information received from the cedants. The $ 5.9 million decrease in prior accident year loss reserves related to Exited Lines primarily consisted of the following: • Property: A $ 1.1 million increase primarily in Property Brokerage. The increase reflects higher than expected claims severity in the 2014, 2021 and 2022 accident years partially offset by lower than expected severity in the 2017 and 2020 accident years. • Reinsurance: A $ 6.2 million decrease in the 2012 and 2015 through 2021 accident years based on information received from cedants, primarily in the property treaties. • General Liability: A $ 0.9 million de crease primarily recognizes lower than expected severity in the 2014 through 2017 accident years, partially offset by an increase in the 2019 accident year. During the second quarter of 2022, the Company decreased its prior accident year loss reserves by $ 3.6 million , which consisted of a $ 2.3 million decrease related to Commercial Specialty, a $ 1.2 million decrease related to Reinsurance Operations, and a $ 0.1 million decrease related to Exited Lines. The $ 2.3 million decrease of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • Property: A $ 3.4 million decrease primarily recognizes lower than expected claims severity in the 2015 and 2018 through 2021 accident years. • General Liability: A $ 1.2 million increase reflects higher than expected claims severity in accident years prior to 2005, 2016, 2017, 2019 and 2020 accident years, partially offset by decreases in the 2010 through 2015, 2018 and 2021 accident years. The $ 1.2 million reduction of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following: • Professional: A $ 1.2 million decrease was recognized in the 2016 accident year reflecting a reduction in the ultimate for the claims-made segment; the inception-to-date case incurred remains zero in this year. The $ 0.1 million reduction of prior accident year loss reserves related to Exited Lines consisted of the following: • Property: A $ 2.0 million increase reflects higher than expected claims severity in the 2015 through 2018 accident years, partially offset by a decrease in the 2011 and 2021 accident years. • Reinsurance: A $ 2.1 million decrease primarily in the 2017 through the 2021 accident years based on the reported information from cedants. During the first six months of 2023, the Company increased its prior accident year loss reserves by $ 0.1 million , which consisted of a $ 6.5 million increase related to Commercial Specialty, a $ 1.0 million increase related to Reinsurance Operations, and a $ 7.4 million decrease related to Exited Lines. The $ 6.5 million increase of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • Property: A $ 0.8 million decrease recognizes lower than expected claims severity in the 2021 accident year, partially offset by increases in the 2015, 2019, 2020, and 2022 accident years. • General Liability: A $ 7.3 million increase recognizes higher than expected claims severity in the 2013, 2015, 2017, and 2019 through 2022 accident years, partially offset by decreases in accident years prior to 2006 related to construction defect and the 2011 accident year. The $ 1.0 million increase of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following: • Professional: A $ 1.1 million increase in the 2022 accident year recognizes higher prior accident year case incurred emergence than expected. • General Liability: A $ 0.1 million decrease based on information received from the cedants. The $ 7.4 million reduction of prior accident year loss reserves related to Exited Lines primarily consisted of the following: • Property: A $ 1.3 million increase reflects higher than expected claims severity in the 2014, 2021 and 2022 accident years in Property Brokerage, partially offset by lower than expected severity in the 2016, 2017 and 2020 accident years. • Reinsurance: A $ 7.3 million decrease in the 2012 and 2015 through 2021 accident years based on information received from cedants, primarily in the property treaties. • General Liability: A $ 1.4 million decrease primarily recognizes lower than expected severity in the 2014 through 2017 accident years, partially offset by an increase in the 2022 accident year . During the first six months of 2022, the Company decreased its prior accident year loss reserves by $ 6.6 million , which consisted of a $ 0.4 million decrease related to Commercial Specialty, a $ 1.2 million decrease related to Reinsurance Operations, and a $ 5.0 million decrease related to Exited Lines. The $ 0.4 million decrease of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • Property: A $ 1.5 million decrease primarily recognizes lower than expected claims severity in the 2019 and 2021 accident years, partially offset by increases in the 2015 and 2018 accident years. • General Liability: A $ 1.2 million increase reflects higher than expected claims severity in accident years prior to 2005, 2010, 2016, 2017, 2019 and 2020 accident years, partially offset by decreases in the 2006, 2007, 2011 through 2015, 2018 and 2021 accident years. The $ 1.2 million reduction of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following: • Professional: A $ 1.2 million decrease was recognized in the 2016 accident year reflecting a reduction in the ultimate for the claims-made segment; the inception-to-date case incurred remains zero in this year. The $ 5.0 million reduction of prior accident year loss reserves related to Exited Lines primarily consisted of the following: • Property: A $ 0.2 million decrease primarily in the 2011, 2018 and 2021 accident years, partially offset by increases in the 2015 through 2017 and 2020 accident years. • Reinsurance: A $ 4.3 million decrease primarily in the 2017 through the 2021 accident years based on reported information from the cedants. • General Liability: A $ 0.6 million reduction in the 2017, 2019 and 2021 accident years partially offset by an increase in the 2018 accident year. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | 9. Shareholders’ Equity Repurchases of the Company's class A common shares On October 21, 2022, Global Indemnity Group, LLC announced it commenced a stock repurchase program beginning in the fourth quarter of 2022. On January 3, 2023, Global Indemnity Group, LLC announced that it had authorized an increase in the aggregate stock purchase program from $ 32 million, which was authorized on October 21, 2022, to $ 60 million. On June 8, 2023, Global Indemnity Group, LLC's Board of Directors approved an additional increase in the existing share buyback authorization amount of $ 60 million to $ 135 million. The authorization to repurchase will expire on December 31, 2027 . The timing and actual number of shares repurchased, if any, will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities. The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2023: Period (1) Total Number Average Total Number of Shares Purchased as Part of Publicly Announced Plan or Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2) January 1-31, 2023 3,302 (3) $ 23.31 — — January 1-31, 2023 250,000 (4) $ 25.90 250,000 $ 106,604,066 April 1-30, 2023 200,000 (4) $ 28.00 200,000 $ 101,004,066 June 1-30, 2023 15,558 (3) $ 33.74 — $ 101,004,066 Total 468,860 $ 27.04 (1) Based on settlement date. (2) Based on the $ 135 million share repurchase authorization. (3) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock and/or restricted stock units. (4) Purchased as part of the repurchase program announced in October 2022. The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2022: Period (1) Total Number Average Total Number of Shares Purchased as Part of Publicly Announced Plan or Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs January 1-31, 2022 4,781 (2) $ 25.13 — — June 1-30, 2022 11,173 (2) $ 26.28 — — Total 15,954 $ 25.94 — — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock and/or restricted stock units. There were no c lass B common shares that were surrendered or repurchased during the quarters and six months ended June 30, 2023 or 2022. Each class A common share has one vote and each class B common share has ten votes. As of June 30, 2023 , Global Indemnity Group, LLC’s class A common shares were held by approximately 140 shareholders of record. There were two holders of record of Global Indemnity Group, LLC’s class B common shares, all of whom are affiliated investment funds of Fox Paine & Company, LLC, as of June 30, 2023. Global Indemnity Group, LLC’s preferred shares were held by 1 holder of record, an affiliate of Fox Paine & Company, LLC, as of June 30, 2023. Please see Note 16 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2022 Annual Report on Form 10-K for more information on the Company’s repurchase program. Distributions Distribution payments of $ 0.25 per common share were declared during the six months ended June 30, 2023 as follows: Approval Date Record Date Payment Date Total Distributions Declared March 2, 2023 March 24, 2023 March 31, 2023 $ 3,410 June 1, 2023 June 23, 2023 June 30, 2023 3,375 Various (1) Various Various ( 21 ) Total $ 6,764 (1) Represents distributions declared on unvested shares, net of forfeitures. Distribution payments of $ 0.25 per common share were declared during the six months ended June 30, 2022 as follows: Approval Date Record Date Payment Date Total Distributions Declared March 3, 2022 March 21, 2022 March 31, 2022 $ 3,597 June 2, 2022 June 20, 2022 June 30, 2022 3,602 Various (1) Various Various 190 Total $ 7,389 (1) Represents distributions declared on unvested shares, net of forfeitures. In addition, distributions paid to Global Indemnity Group, LLC's preferred shareholder were $ 0.1 million in each of the quarters ended June 30, 2023 and 2022 and $ 0.2 million in each of the six months ended June 30, 2023 and 2022. Accrued distributions on unvested shares, which were included in other liabilities on the consolidated balance sheets, were $ 0.3 million and $ 1.1 million as of June 30, 2023 and December 31, 2022 , respectively. Accrued preferred distributions were less than $ 0.1 million as of both June 30, 2023 and December 31, 2022 and were included in other liabilities on the consolidated balance sheets. Please see Note 16 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2022 Annual Report on Form 10-K for more information on the Company’s distribution program. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions Fox Paine Entities Pursuant to Global Indemnity Group, LLC’s Limited Liability Company Agreement (“LLCA”), Fox Paine Capital Fund II International, L.P. (the “Fox Paine Fund”), together with Fox Mercury Investments, L.P. and certain of its affiliates (the “FM Entities”), and Fox Paine & Company LLC (collectively, the “Fox Paine Entities”) currently constitute a Class B Majority Shareholder (as defined in the LLCA) and, as such, have the right to appoint a number of Global Indemnity Group, LLC’s directors equal in aggregate to the pro rata percentage of the voting power in Global Indemnity Group, LLC beneficially held by the Fox Paine Entities, rounded up to the nearest whole number of directors. The Fox Paine Entities beneficially own shares representing approximately 83.9 % of the voting power of Global Indemnity Group, LLC as of June 30, 2023. The Fox Paine Entities control the appointment or election of all of Global Indemnity Group, LLC’s Directors due to the LLCA and their controlling share ownership. Global Indemnity Group, LLC’s Chairman is the chief executive and founder of Fox Paine & Company, LLC. Management fee expense of $ 0.8 million and $ 0.7 million were incurred during the quarters ended June 30, 2023 and 2022 , respectively, and management fee expense of $ 1.5 million and $ 1.4 million were incurred during the six months ended June 30, 2023 and 2022, respectively. Prepaid management fees, which were included in other assets on the consolidated balance sheets, were $ 0.5 million and $ 2.1 million as of June 30, 2023 and December 31, 2022, respectively. In addition, Fox Paine & Company, LLC may also propose and negotiate transaction fees with the Company subject to the provisions of the Company’s related party transaction and conflict matter policies, including approval of Global Indemnity Group, LLC’s Conflicts Committee of the Board of Directors, for those services from time to time. Each of the Company’s transactions with Fox Paine & Company, LLC are reviewed and approved by Global Indemnity Group, LLC’s Conflicts Committee, which is composed of independent directors, and the Board of Directors (other than Saul A. Fox, Chairman of the Board of Directors of Global Indemnity Group, LLC and Chief Executive of Fox Paine & Company, LLC, who is not a member of the Conflicts Committee and recused himself from the Board of Directors’ deliberations related to fees paid to Fox Paine & Company, LLC or its affiliates). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Legal Proceedings The Company is, from time to time, involved in various legal proceedings in the ordinary course of business. The Company maintains insurance and reinsurance coverage for such risks in amounts that it considers adequate. However, there can be no assurance that the insurance and reinsurance coverage that the Company maintains is sufficient or will be available in adequate amounts or at a reasonable cost. The Company does not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material adverse effect on its business, results of operations, cash flows, or financial condition. There is a greater potential for disputes with reinsurers who are in runoff. Some of the Company’s reinsurers have operations that are in runoff, and therefore, the Company closely monitors those relationships. The Company anticipates that, similar to the rest of the insurance and reinsurance industry, it will continue to be subject to litigation and arbitration proceedings in the ordinary course of business. Commitments In 2014, the Company entered into a $ 50 million commitment to purchase an alternative investment vehicle which is comprised of European non-performing loans. As of June 30, 2023 , the Company has funded $ 35.8 million of this commitment leaving $ 14.2 million as unfunded. Since the investment period has concluded, the Company expects minimal capital calls will be made prospectively. Other Commitments The Company is party to a Management Agreement, as amended, with Fox Paine & Company, LLC, whereby in connection with certain management services provided to it by Fox Paine & Company, LLC, the Company agreed to pay an annual management fee to Fox Paine & Company, LLC. See Note 10 above for additional information pertaining to this management agreement. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation Plans | 12. Share-Based Compensation Plans Share Incentive Plan On June 14, 2023 , the Company’s Shareholders approved the Global Indemnity Group, LLC 2023 Share Incentive Plan (“the 2023 Plan”). The primary purpose of the 2023 Plan is to provide Global Indemnity a competitive advantage in attracting, retaining, and motivating officers, employees, consultants and non-employee directors, and to position Global Indemnity to offer incentives linked to the financial results of the Company’s business and increases in shareholder value. Under the 2023 Plan, the Company may issue up to 2.5 million class A common shares pursuant to awards granted under the Plan. The 2023 Plan replaced the Global Indemnity Group, LLC 2018 Share Incentive Plan, as amended and restated on August 28, 2020 which expired pursuant to its terms on March 4, 2023. Options No stock options were awarded during the quarters and six months ended June 30, 2023 or 2022. No unvested stock options were forfeited during the quarters and six months ended June 30, 2023 or 2022. Restricted Shares / Restricted Stock Units There were no restricted class A common shares or restricted stock units granted to key employees during the quarters and six months ended June 30, 2023 and 2022. There were no restricted class A common shares or restricted stock units forfeited during the quarter and six months ended June 30, 2023 and 2022. There were 49,628 and 35,442 restricted stock units that vested during the quarters ended June 30, 2023 and 2022 , respectively, and 75,541 and 61,522 restricted stock units that vested during the six months ended June 30, 2023 and 2022, respectively Upon vesting, the restricted stock units converted to restricted class A common shares. During the quarters ended June 30, 2023 and 2022 , the Company granted 22,279 and 25,760 class A common shares, respectively, at a weighted average grant date value of $ 30.20 and $ 25.96 per share, respectively, to non-employee directors of the Company under the Plan. During the six months ended June 30, 2023 and 2022 , the Company granted 48,705 and 50,570 class A common shares, respectively, at a weighted average grant date value of $ 27.63 and $ 25.80 per share, respectively, to non-employee directors of the Company under the Plan. The Company previously granted 157,139 shares to a non-employee director with deferred vesting. These shares vested on January 13, 2023 . All other shares granted to non-employee directors of the Company are fully vested but are subject to certain restrictions. Rule 10b5-1 Trading Plans The Company did not have any Rule 10b5-1 Trading Plans in place during the six months ended June 30, 2023 and 2022 . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. Earnings Per Share Earnings per share have been computed using the weighted average number of common shares and common share equivalents outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share: Quarters Ended Six Months Ended (Dollars in thousands, except share and per share data) 2023 2022 2023 2022 Numerator: Net income (loss) $ 9,337 $ ( 12,162 ) $ 11,831 $ ( 26,935 ) Less: preferred stock distributions 110 110 220 220 Net income (loss) available to common shareholders $ 9,227 $ ( 12,272 ) $ 11,611 $ ( 27,155 ) Denominator: Weighted average shares for basic earnings per share 13,478,014 14,543,234 13,573,841 14,529,170 Non-vested restricted stock units 61,579 — 58,571 — Options 168,391 — 161,809 — Weighted average shares for diluted earnings per share (1) 13,707,984 14,543,234 13,794,221 14,529,170 Earnings per share - Basic $ 0.68 $ ( 0.84 ) $ 0.86 $ ( 1.87 ) Earnings per share - Diluted $ 0.67 $ ( 0.84 ) $ 0.84 $ ( 1.87 ) (1) For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period. If the Company had not incurred a loss in the quarter ended June 30, 2022 , 14,749,370 weighted average shares would have been used to compute the diluted loss per share calculation. In addition to the basic shares, weighted average shares for the diluted calculation for the quarter ended June 30, 2022 would have included 110,417 shares of non-vested restricted stock units and 95,719 share equivalents for options. If the Company had not incurred a loss in the six months ended June 30, 2022 , 14,728,182 weighted average shares would have been used to compute the diluted loss per share calculation. In addition to the basic shares, weighted average shares for the diluted calculation for the six months ended June 30, 2022 would have included 103,670 shares of non-vested restricted stock units and 95,342 share equivalents for options. The weighted average shares outstanding used to determine dilutive earnings per share does not include 346,667 shares for both the quarter and six months ended June 30, 2023 and 393,333 shares for both the quarter and six months ended June 30, 2022 , which were deemed to be anti-dilutive. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 14. Segment Information During the fourth quarter of 2022, the Company restructured its insurance operations to strengthen its market presence and enhance its focus on GBLI’s core Package Specialty and Targeted Specialty products. As a result, the Company exited four brokerage divisions: Professional Liability, Excess Casualty, Environmental, and Middle Market Property. The Company ceased writing new business and existing renewals were placed in run-off for these four divisions. Based on the decisions to exit these lines of business, the Company changed the way it manages and analyzes its operating results. The chief operating decision makers decided they will be reviewing the specific results of these exited lines within the Company's Exited Lines segment. In addition, a decision was made in the fourth quarter of 2022 to reclassify several smaller reinsurance treaties from Reinsurance Operations to Commercial Specialty. Management believes these segment changes allow users of the Company’s financial statements to better understand the Company's performance, better assess prospects for future net cash flows, and make more informed judgments about the Company as a whole. Accordingly, the segment results for the quarter and six months ended June 30, 2022 have been revised to reflect these changes. The Company manages its business through two ongoing business segments. Commercial Specialty offers specialty property and casualty products designed for GBLI's Package Specialty and Targeted Specialty product offerings. These product lines are offered primarily in the excess and surplus lines marketplace. Reinsurance Operations provides reinsurance and insurance solutions through brokers and primary writers including insurance and reinsurance companies. The Company also has an Exited Lines segment that contains lines of business that are no longer being written or are in runoff. The following are tabulations of business segment information for the quarters and six months ended June 30, 2023 and 2022. Corporate information is included to reconcile segment data to the consolidated financial statements. Quarter Ended June 30, 2023 Commercial Reinsurance (1) Exited Lines Total Revenues: Gross written premiums $ 95,347 $ 14,844 $ ( 91 ) $ 110,100 Net written premiums $ 91,896 $ 14,844 $ ( 744 ) $ 105,996 Net earned premiums $ 93,408 $ 29,585 $ 6,163 $ 129,156 Other income 266 9 26 301 Total revenues 93,674 29,594 6,189 129,457 Losses and Expenses: Net losses and loss adjustment expenses 58,662 19,512 ( 92 ) 78,082 Acquisition costs and other underwriting expenses 33,972 10,737 2,392 47,101 Income (loss) from segments $ 1,040 $ ( 655 ) $ 3,889 $ 4,274 Unallocated Items: Net investment income 13,216 Net realized investment losses ( 761 ) Other loss ( 19 ) Corporate and other operating expenses ( 4,990 ) Interest expense ( 12 ) Income before income taxes 11,708 Income tax expense ( 2,371 ) Net income $ 9,337 Segment assets $ 999,271 $ 383,040 $ 222,491 $ 1,604,802 Corporate assets 169,200 Total assets $ 1,774,002 (1) External business only, excluding business assumed from affiliates. Quarter Ended June 30, 2022 Commercial Reinsurance (1) Exited Lines Total Revenues: Gross written premiums $ 105,010 $ 46,524 $ 45,289 $ 196,823 Net written premiums $ 99,667 $ 46,524 $ 20,967 $ 167,158 Net earned premiums $ 93,997 $ 39,162 $ 22,590 $ 155,749 Other income (loss) 260 20 ( 196 ) 84 Total revenues 94,257 39,182 22,394 155,833 Losses and Expenses: Net losses and loss adjustment expenses 52,804 22,793 17,021 92,618 Acquisition costs and other underwriting expenses 35,543 14,553 11,002 61,098 Income (loss) from segments $ 5,910 $ 1,836 $ ( 5,629 ) $ 2,117 Unallocated Items: Net investment income 1,930 Net realized investment losses ( 9,916 ) Other income 13 Corporate and other operating expenses ( 2,993 ) Interest expense ( 410 ) Loss on extinguishment of debt ( 3,529 ) Loss before income taxes ( 12,788 ) Income tax benefit 626 Net loss ( 12,162 ) Segment assets $ 1,002,120 $ 326,804 $ 384,991 $ 1,713,915 Corporate assets 147,864 Total assets $ 1,861,779 (1) External business only, excluding business assumed from affiliates. Six Months Ended June 30, 2023 Commercial Reinsurance (1) Exited Lines Total Revenues: Gross written premiums $ 190,855 $ 38,260 $ 3,970 $ 233,085 Net written premiums $ 183,130 $ 38,260 $ 467 $ 221,857 Net earned premiums $ 186,590 $ 64,432 $ 18,206 $ 269,228 Other income 533 — 103 636 Total revenues 187,123 64,432 18,309 269,864 Losses and Expenses: Net losses and loss adjustment expenses 118,781 40,775 6,527 166,083 Acquisition costs and other underwriting expenses 69,498 23,553 7,528 100,579 Income (loss) from segments $ ( 1,156 ) $ 104 $ 4,254 $ 3,202 Unallocated Items: Net investment income 25,224 Net realized investment losses ( 2,281 ) Corporate and other operating expenses ( 11,358 ) Interest expense ( 12 ) Income before income taxes 14,775 Income tax expense ( 2,944 ) Net income $ 11,831 Segment assets $ 999,271 $ 383,040 $ 222,491 $ 1,604,802 Corporate assets 169,200 Total assets $ 1,774,002 (1) External business only, excluding business assumed from affiliates. Six Months Ended June 30, 2022 Commercial Reinsurance (1) Exited Lines Total Revenues: Gross written premiums $ 207,858 $ 87,520 $ 92,428 $ 387,806 Net written premiums $ 197,830 $ 87,520 $ 41,290 $ 326,640 Net earned premiums $ 185,194 $ 73,460 $ 45,918 $ 304,572 Other income 519 — 4 523 Total revenues 185,713 73,460 45,922 305,095 Losses and Expenses: Net losses and loss adjustment expenses 106,463 43,852 26,998 177,313 Acquisition costs and other underwriting expenses 69,069 26,514 22,207 117,790 Income (loss) from segments $ 10,181 $ 3,094 $ ( 3,283 ) $ 9,992 Unallocated Items: Net investment income 8,522 Net realized investment losses ( 35,301 ) Corporate and other operating expenses ( 7,653 ) Interest expense ( 3,005 ) Loss on extinguishment of debt ( 3,529 ) Loss before income taxes ( 30,974 ) Income tax benefit 4,039 Net loss $ ( 26,935 ) Segment assets $ 1,002,120 $ 326,804 $ 384,991 $ 1,713,915 Corporate assets 147,864 Total assets $ 1,861,779 (1) External business only, excluding business assumed from affiliates. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | 15. New Accounting Pronouncements The Company did not adopt any new accounting pronouncements during the six months ended June 30, 2023 . |
Principles of Consolidation a_2
Principles of Consolidation and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Segments | The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Intercompany Balances and Transactions | The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and six months ended June 30, 2023 and 2022 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2022 Annual Report on Form 10-K. The consolidated financial statements include the accounts of Global Indemnity Group, LLC and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Investments | The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each available for sale debt security in an unrealized loss position to assess whether the decline in fair value below amortized cost basis has resulted from a credit loss or other factors. In assessing whether a credit loss exists, the Company compares the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis of the security, a credit loss exists and an allowance for expected credit losses is recorded. Subsequent changes in the allowances are recorded in the period of change as either credit loss expense or reversal of credit loss expense. Any impairments related to factors other than credit losses and the intent to sell are recorded through other comprehensive income, net of taxes. For fixed maturities, the factors considered in reaching the conclusion that a credit loss exists include, among others, whether: (1) the extent to which the fair value is less than the amortized cost basis; (2) the issuer is in financial distress; (3) the investment is secured; (4) a significant credit rating action occurred; (5) scheduled interest payments were delayed or missed; (6) changes in laws or regulations have affected an issuer or industry; (7) the investment has an unrealized loss and was identified by the Company’s investment manager as an investment to be sold before recovery or maturity; (8) the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized; and (9) changes in US Treasury rates and/or credit spreads since original purchase to identify whether the unrealized loss is simply due to interest rate movement. According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met, any allowance for expected credit losses is written off and the amortized cost basis is written down to the fair value of the fixed maturity security with any incremental impairment reported in earnings. That new amortized cost basis shall not be adjusted for subsequent recoveries in fair value. The Company elected the practical expedient to exclude accrued interest from both the fair value and the amortized cost basis of the available for sale debt securities for the purposes of identifying and measuring an impairment and to not measure an allowance for expected credit losses for accrued interest receivables. Accrued interest receivable is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default on payment. The Company made an accounting policy election to present the accrued interest receivable balance with other assets on the Company’s consolidated statements of financial position. Accrued interest receivable related to fixed maturities was $ 8.3 million and $ 8.4 million as of June 30, 2023 and December 31, 2022 , respectively. |
Derivative Instruments | The Company accounts for the interest rate swaps and futures as non-hedge instruments and recognizes the fair value of the interest rate swaps in other assets or other liabilities on the consolidated balance sheets with the changes in fair value recognized as net realized investment gains or losses in the consolidated statements of operations. The Company is ultimately responsible for the valuation of the interest rate swaps. To aid in determining the estimated fair value of the interest rate swaps, the Company relies on the forward interest rate curve and information obtained from a third party financial institution. |
Fair Value Measurement | The Company’s invested assets are carried at their fair value and are categorized based upon a fair value hierarchy: • Level 1 – inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date. • Level 2 – inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly. • Level 3 – inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset. The following is a description of the valuation methodologies used by the Company’s pricing vendors for investment securities carried at fair value: • Equity security prices are received from primary and secondary exchanges. • Corporate and agency bonds are evaluated by utilizing a spread to a benchmark curve. Bonds with similar characteristics are grouped into specific sectors. Inputs for both asset classes consist of trade prices, broker quotes, the new issue market, and prices on comparable securities. • Data from commercial vendors is aggregated with market information, then converted into an option adjusted spread (“OAS”) matrix and prepayment model used for collateralized mortgage obligations (“CMO”). CMOs are categorized with mortgage-backed securities in the tables listed above. For asset-backed securities, spread data is derived from trade prices, dealer quotations, and research reports. For both asset classes, evaluations utilize standard inputs plus new issue data, and collateral performance. The evaluated pricing models incorporate cash flows, broker quotes, market trades, historical prepayment speeds, and dealer projected speeds. • For obligations of state and political subdivisions, an attribute-based modeling system is used. The pricing model incorporates trades, market clearing yields, market color, and fundamental credit research. • U.S. treasuries are evaluated by obtaining feeds from a number of live data sources including primary and secondary dealers as well as inter-dealer brokers. • For mortgage-backed securities, various external analytical products are utilized and purchased from commercial vendors. |
Statutory Income Tax Rates | The statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense. |
Loss Reserves and Prior Year Development | When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates. |
Earnings Per Share | Earnings per share have been computed using the weighted average number of common shares and common share equivalents outstanding during the period. |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Charges Incurred by Expense Type and Remaining Liability | The following table summarizes charges incurred by expense type and the remaining liability as of December 31, 2022 and June 30, 2023: (Dollars in thousands) Consolidated Statements of Operations Line Employee Termination Lease Right of Use Asset Impairment Total Charges incurred in 2022 Corporate and other operating expenses $ 2,635 $ — $ 2,635 Charges incurred in 2022 Acquisition costs and other underwriting expenses (1) — 812 812 Non-cash asset charges — ( 812 ) ( 812 ) Liability at December 31, 2022 2,635 — 2,635 Charges incurred in 2023 Corporate and other operating expenses 2,121 — 2,121 Cash payments in 2023 ( 4,249 ) — ( 4,249 ) Liability at June 30, 2023 $ 507 $ — $ 507 (1) These charges were recorded within the Company's Exited Line segment. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Estimated Fair Value of Company's Fixed Maturities Securities | The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of June 30, 2023 and December 31, 2022: (Dollars in thousands) Amortized Allowance for Expected Credit Losses Gross Gross Estimated As of June 30, 2023 Fixed maturities: U.S. treasuries $ 396,451 $ — $ 12 $ ( 7,701 ) $ 388,762 Obligations of states and political subdivisions 32,272 — — ( 1,666 ) 30,606 Mortgage-backed securities 65,086 — 396 ( 4,816 ) 60,666 Asset-backed securities 212,095 — 186 ( 7,966 ) 204,315 Commercial mortgage-backed securities 86,313 — 21 ( 5,880 ) 80,454 Corporate bonds 343,600 — 102 ( 12,038 ) 331,664 Foreign corporate bonds 175,750 — 30 ( 6,641 ) 169,139 Total fixed maturities $ 1,311,567 $ — $ 747 $ ( 46,708 ) $ 1,265,606 (Dollars in thousands) Amortized Allowance for Expected Credit Losses Gross Gross Estimated As of December 31, 2022 Fixed maturities: U.S. treasuries $ 352,533 $ — $ — $ ( 8,430 ) $ 344,103 Obligations of states and political subdivisions 33,471 — — ( 1,876 ) 31,595 Mortgage-backed securities 67,560 — 165 ( 5,609 ) 62,116 Asset-backed securities 198,161 — 390 ( 9,151 ) 189,400 Commercial mortgage-backed securities 104,777 — 20 ( 6,133 ) 98,664 Corporate bonds 353,622 — 16 ( 14,858 ) 338,780 Foreign corporate bonds 191,599 — — ( 8,059 ) 183,540 Total fixed maturities $ 1,301,723 $ — $ 591 $ ( 54,116 ) $ 1,248,198 |
Schedule Of Investments In Equity Securities | As of June 30, 2023 and December 31, 2022, the Company’s investments in equity securities consist of the following: (Dollars in thousands) June 30, 2023 December 31, 2022 Common stock $ 1,113 $ 1,271 Preferred stock 16,040 16,249 Total $ 17,153 $ 17,520 |
Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities | The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at June 30, 2023, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Estimated Due in one year or less $ 489,914 $ 483,894 Due in one year through five years 428,150 410,281 Due in five years through ten years 17,529 15,287 Due after fifteen years 12,480 10,709 Mortgage-backed securities 65,086 60,666 Asset-backed securities 212,095 204,315 Commercial mortgage-backed securities 86,313 80,454 Total $ 1,311,567 $ 1,265,606 |
Summary of Securities With Gross Unrealized Losses | The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of June 30, 2023. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 5. Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Gross Fair Value Gross Fair Value Gross Fixed maturities: U.S. treasuries $ 198,477 $ ( 3,953 ) $ 120,678 $ ( 3,748 ) $ 319,155 $ ( 7,701 ) Obligations of states and political subdivisions 7,810 ( 222 ) 19,795 ( 1,444 ) 27,605 ( 1,666 ) Mortgage-backed securities 16,354 ( 707 ) 33,913 ( 4,109 ) 50,267 ( 4,816 ) Asset-backed securities 91,904 ( 1,888 ) 95,269 ( 6,078 ) 187,173 ( 7,966 ) Commercial mortgage-backed securities 1,678 ( 69 ) 76,056 ( 5,811 ) 77,734 ( 5,880 ) Corporate bonds 74,010 ( 1,175 ) 230,601 ( 10,863 ) 304,611 ( 12,038 ) Foreign corporate bonds 23,100 ( 154 ) 119,948 ( 6,487 ) 143,048 ( 6,641 ) Total fixed maturities $ 413,333 $ ( 8,168 ) $ 696,260 $ ( 38,540 ) $ 1,109,593 $ ( 46,708 ) The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2022. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 5. Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Gross Fair Value Gross Fair Value Gross Fixed maturities: U.S. treasuries $ 335,781 $ ( 7,518 ) $ 8,322 $ ( 912 ) $ 344,103 $ ( 8,430 ) Obligations of states and political subdivisions 27,772 ( 1,378 ) 3,778 ( 498 ) 31,550 ( 1,876 ) Mortgage-backed securities 51,517 ( 4,228 ) 7,860 ( 1,381 ) 59,377 ( 5,609 ) Asset-backed securities 97,857 ( 3,610 ) 62,689 ( 5,541 ) 160,546 ( 9,151 ) Commercial mortgage-backed securities 67,926 ( 4,072 ) 27,907 ( 2,061 ) 95,833 ( 6,133 ) Corporate bonds 261,123 ( 8,480 ) 71,192 ( 6,378 ) 332,315 ( 14,858 ) Foreign corporate bonds 150,308 ( 5,469 ) 31,232 ( 2,590 ) 181,540 ( 8,059 ) Total fixed maturities $ 992,284 $ ( 34,755 ) $ 212,980 $ ( 19,361 ) $ 1,205,264 $ ( 54,116 ) |
Schedule of Impairments on Investments | The Company recorded the following impairments on its investment portfolio for the quarters and six months ended June 30, 2023 and 2022 and are related to securities in an unrealized loss position where the Company had an intent to sell the securities: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 (1) 2023 2022 Fixed maturities: Impairment related to intent to sell — ( 680 ) — ( 26,205 ) Total $ — $ ( 680 ) $ — $ ( 26,205 ) (1) In response to a rising interest rate environment, the Company took action early in April 2022 to shorten the duration of its fixed maturities portfolio. In connection with these actions, the Company identified fixed maturities securities with a weighted average life of five years or greater as having an intent to sell resulting in other-than-temporary impairment losses. The majority of which were sold in the 2nd quarter of 2022. Most of the proceeds from the sale of these securities were reinvested into fixed income investments with maturities of two years . As a result of these actions, the Company's book yield rose over time. Book yield was approximately 2.2 % at December 31, 2021 and 3.8 % at June 30, 2023. |
Schedule of Accumulated Other Comprehensive Income, Net of Tax | Accumulated other comprehensive income, net of tax, as of June 30, 2023 and December 31, 2022 was as follows: (Dollars in thousands) June 30, 2023 December 31, 2022 Net unrealized gains (losses) from: Fixed maturities $ ( 45,961 ) $ ( 53,525 ) Foreign currency fluctuations ( 328 ) ( 127 ) Deferred taxes 9,118 10,594 Accumulated other comprehensive income (loss), net of tax $ ( 37,171 ) $ ( 43,058 ) |
Changes in Accumulated Other Comprehensive Income | The following tables present the changes in accumulated other comprehensive income, net of tax, by components, for the quarters and six months ended June 30, 2023 and 2022: Quarter Ended June 30, 2023 Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Beginning balance, net of tax $ ( 34,314 ) $ ( 301 ) $ ( 34,615 ) Other comprehensive income (loss) before reclassification, before tax ( 3,757 ) 53 ( 3,704 ) Amounts reclassified from accumulated other comprehensive income, before tax 587 — 587 Other comprehensive income (loss), before tax ( 3,170 ) 53 ( 3,117 ) Income tax (expense) benefit 572 ( 11 ) 561 Ending balance, net of tax $ ( 36,912 ) $ ( 259 ) $ ( 37,171 ) Quarter Ended June 30, 2022 Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Beginning balance, net of tax $ ( 12,769 ) $ ( 3 ) $ ( 12,772 ) Other comprehensive loss before reclassification, before tax ( 26,518 ) ( 287 ) ( 26,805 ) Amounts reclassified from accumulated other comprehensive income, before tax 9,317 — 9,317 Other comprehensive loss, before tax ( 17,201 ) ( 287 ) ( 17,488 ) Income tax benefit 3,575 60 3,635 Ending balance, net of tax $ ( 26,395 ) $ ( 230 ) $ ( 26,625 ) Six Months Ended June 30, 2023 Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Beginning balance, net of tax $ ( 42,958 ) $ ( 100 ) $ ( 43,058 ) Other comprehensive (loss) before reclassification, before tax 6,371 ( 201 ) 6,170 Amounts reclassified from accumulated other comprehensive income, before tax 1,193 — 1,193 Other comprehensive income (loss), before tax 7,564 ( 201 ) 7,363 Income tax (expense) benefit ( 1,518 ) 42 ( 1,476 ) Ending balance, net of tax $ ( 36,912 ) $ ( 259 ) $ ( 37,171 ) Six Months Ended June 30, 2022 Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Beginning balance, net of tax $ 6,519 $ ( 115 ) $ 6,404 Other comprehensive loss before reclassification, before tax ( 79,267 ) ( 146 ) ( 79,413 ) Amounts reclassified from accumulated other comprehensive income, before tax 38,081 — 38,081 Other comprehensive loss, before tax ( 41,186 ) ( 146 ) ( 41,332 ) Income tax benefit 8,272 31 8,303 Ending balance, net of tax $ ( 26,395 ) $ ( 230 ) $ ( 26,625 ) |
Reclassifications Out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive income for the quarters and six months ended June 30, 2023 and 2022 were as follows: Amounts Reclassified from (Dollars in thousands) Quarters Ended June 30, Details about Accumulated Other Affected Line Item in the Consolidated 2023 2022 Unrealized gains and losses on available for sale securities Other net realized investment (gains) losses $ 587 $ 8,637 Other than temporary impairment losses on investments — 680 Total before tax 587 $ 9,317 Income tax expense (benefit) ( 108 ) ( 1,440 ) Total reclassifications, net of tax $ 479 $ 7,877 Amounts Reclassified from (Dollars in thousands) Six Months Ended June 30, Details about Accumulated Other Affected Line Item in the Consolidated 2023 2022 Unrealized gains and losses on available for sale securities Other net realized investment (gains) losses $ 1,193 $ 11,876 Other than temporary impairment losses on investments — 26,205 Total before tax 1,193 $ 38,081 Income tax expense (benefit) ( 227 ) ( 7,119 ) Total reclassifications, net of tax $ 966 $ 30,962 |
Components of Net Realized Investment Gains (Losses) | The components of net realized investment gains (losses) for the quarters and six months ended June 30, 2023 and 2022 were as follows: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Fixed maturities: Gross realized gains $ 9 $ 456 $ 14 $ 662 Gross realized losses ( 596 ) ( 9,773 ) ( 1,207 ) ( 38,743 ) Net realized gains (losses) ( 587 ) ( 9,317 ) ( 1,193 ) ( 38,081 ) Equity securities: Gross realized gains 209 2 784 1,806 Gross realized losses ( 383 ) ( 2,417 ) ( 1,872 ) ( 5,566 ) Net realized gains (losses) ( 174 ) ( 2,415 ) ( 1,088 ) ( 3,760 ) Derivatives: Gross realized gains — 2,872 — 8,960 Gross realized losses — ( 1,056 ) — ( 2,420 ) Net realized gains (losses) (1) — 1,816 — 6,540 Total net realized investment gains (losses) $ ( 761 ) $ ( 9,916 ) $ ( 2,281 ) $ ( 35,301 ) (1) Includes periodic net interest settlements related to the derivatives of $ 1.1 million for the quarters ended June 30, 2022 and $ 2.5 million for the six months ended June 30, 2022. |
Summary of Calculation of Realized Gains and Losses | The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of June 30, 2023 and 2022: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Net gains (losses) recognized during the period on equity securities $ ( 174 ) $ ( 2,415 ) $ ( 1,088 ) $ ( 3,760 ) Less: net gains (losses) recognized during the period on equity securities sold during the period — ( 498 ) 18 10,616 Unrealized gains (losses) recognized during the reporting period on equity securities $ ( 174 ) $ ( 1,917 ) $ ( 1,106 ) $ ( 14,376 ) |
Proceeds from Sales and Redemptions of Available-for-Sale Securities | The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized inv estment gains (losses) for the six months ended June 30, 2023 and 2022 were as follows: Six Months Ended June 30, (Dollars in thousands) 2023 2022 Fixed maturities $ 96,890 $ 829,205 Equity securities 24 88,726 |
Schedule of Investment Income | The sources of net investment income for the quarters and six months ended June 30, 2023 and 2022 were as follows: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Fixed maturities $ 12,313 $ 7,467 $ 23,773 $ 13,871 Equity securities 257 275 447 609 Cash and cash equivalents 300 99 563 131 Other invested assets 697 ( 5,300 ) 1,164 ( 4,874 ) Total investment income 13,567 2,541 25,947 9,737 Investment expense ( 351 ) ( 611 ) ( 723 ) ( 1,215 ) Net investment income $ 13,216 $ 1,930 $ 25,224 $ 8,522 |
Schedule of Total Investment Return | The Company’s total investment return on a pre-tax basis for the quarters and six months ended June 30, 2023 and 2022 were as follows: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Net investment income $ 13,216 $ 1,930 $ 25,224 $ 8,522 Net realized investment losses ( 761 ) ( 9,916 ) ( 2,281 ) ( 35,301 ) Change in unrealized holding gains (losses) ( 3,117 ) ( 17,488 ) 7,363 ( 41,332 ) Net realized and unrealized investment returns ( 3,878 ) ( 27,404 ) 5,082 ( 76,633 ) Total investment return $ 9,338 $ ( 25,474 ) $ 30,306 $ ( 68,111 ) Total investment return % (1) 0.7 % ( 1.8 %) 2.3 % ( 4.8 %) Average investment portfolio (2) $ 1,345,235 $ 1,395,519 $ 1,343,024 $ 1,429,227 (1) Not annualized. (2) Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period. |
Summary of Estimated Fair Values of Bonds Held on Deposit | The fair values were as follows as of June 30, 2023 and December 31, 2022: Estimated Fair Value (Dollars in thousands) June 30, 2023 December 31, 2022 On deposit with governmental authorities $ 20,983 $ 19,290 Held in trust pursuant to third party requirements 164,845 161,901 Total (1) $ 185,828 $ 181,191 (1) Includes cash and cash equivalents of $ 9.3 million and $ 3.7 million at June 30, 2023 and December 31, 2022 , respectively, with the remainder related to bonds available for sale. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Net Gain (Loss) Included in Consolidated Statements of Operations for Changes in Fair Value of Derivatives and Periodic Net Interest Settlements Under Derivatives | The following table summar izes the net gains included in the consolidated statements of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the quarters and six months ended June 30, 2023 and 2022: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) Consolidated Statements of Operations Line 2023 2022 2023 2022 Interest rate swap agreements Net realized investment gains (losses) $ — $ 1,816 $ — $ 6,540 Total $ — $ 1,816 $ — $ 6,540 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Company's Invested Assets Measured at Fair Value on Recurring Basis | The following table presents information about the Company’s invested assets measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value Measurements As of June 30, 2023 Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasuries $ 388,762 $ — $ — $ 388,762 Obligations of states and political subdivisions — 30,606 — 30,606 Mortgage-backed securities — 59,717 949 60,666 Commercial mortgage-backed securities — 80,454 — 80,454 Asset-backed securities — 204,315 — 204,315 Corporate bonds — 329,939 1,725 331,664 Foreign corporate bonds — 169,139 — 169,139 Total fixed maturities 388,762 874,170 2,674 1,265,606 Equity securities — 16,040 1,113 17,153 Total assets measured at fair value $ 388,762 $ 890,210 $ 3,787 $ 1,282,759 Fair Value Measurements As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasuries $ 344,103 $ — $ — $ 344,103 Obligations of states and political subdivisions — 31,595 — 31,595 Mortgage-backed securities — 61,156 960 62,116 Commercial mortgage-backed securities — 98,664 — 98,664 Asset-backed securities — 189,073 327 189,400 Corporate bonds — 336,767 2,013 338,780 Foreign corporate bonds — 183,540 — 183,540 Total fixed maturities 344,103 900,795 3,300 1,248,198 Equity securities — 16,249 1,271 17,520 Total assets measured at fair value $ 344,103 $ 917,044 $ 4,571 $ 1,265,718 |
Changes in Level 3 Investments Measured at Fair Value on Recurring Basis | The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the quarters and six months ended June 30, 2023 and 2022: Quarters Ended Six Months Ended (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 4,335 $ 4,288 $ 4,571 $ 2,769 Total gains (realized / unrealized): Included in accumulated other comprehensive income ( 3 ) 23 7 15 Included in earnings attributable to realized gains / losses ( 113 ) ( 102 ) ( 172 ) ( 170 ) Transfers into level 3 — 607 — 857 Amortization of bond premium and discount, net 2 2 4 2 Purchases 39 55 113 1,479 Sales ( 473 ) ( 523 ) ( 736 ) ( 602 ) Ending balance 3,787 4,350 3,787 4,350 Gains (losses) included in earnings attributable to the change in unrealized gains (losses) related to assets still held at end of reporting period $ ( 103 ) $ ( 9 ) $ ( 162 ) $ ( 14 ) |
Fair Value and Future Funding Commitments Related to These Investments | The following table provides the fair value and future funding commitments related to these investments at June 30, 2023 and December 31, 2022. June 30, 2023 December 31, 2022 (Dollars in thousands) Fair Value Future Funding Fair Value Future Funding European Non-Performing Loan Fund, LP (1) $ 4,406 $ 14,214 $ 4,832 $ 14,214 Mortgage Debt Fund, LP (2) 9,374 — 9,771 — Global Debt Fund, LP (3) 23,502 — 23,573 — Total $ 37,282 $ 14,214 $ 38,176 $ 14,214 (1) This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. (2) This limited partnership invests in REIT qualifying assets such as mortgage loans, investor property loans, and commercial mortgage loans. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. (3) This limited partnership invests in performing, stressed or distressed securities and loans across the global fixed income markets. The Company does have the contractual option to withdraw all or a portion of its limited partnership interest by providing notice to the fund. |
Allowance for Expected Credit_2
Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Allowance for Credit Loss [Abstract] | |
Schedule of Allowance for Credit Losses Related to Premium Receivables | The following table is an analysis of the allowance for expected credit losses related to the Company's premium receivables for the quarters and six months ended June 30, 2023 and 2022: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 3,379 $ 2,937 $ 3,322 $ 2,996 Current period provision for expected credit losses 1,369 536 1,717 619 Write-offs ( 692 ) ( 554 ) ( 983 ) ( 696 ) Ending balance $ 4,056 $ 2,919 $ 4,056 $ 2,919 |
Schedule of Allowance for Credit Losses Related to Reinsurance Receivables | The following table is an analysis of the allowance for expected credit losses related to the Company's reinsurance receivables for the quarters and six months ended June 30, 2023 and 2022: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 8,992 $ 8,992 $ 8,992 $ 8,992 Current period provision for expected credit losses — — — — Write-offs — — — — Recoveries of amounts previously written off — — — — Ending balance $ 8,992 $ 8,992 $ 8,992 $ 8,992 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | The following table summarizes the components of income tax expense (benefit): Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Deferred income tax expense (benefit): U.S. Federal $ 2,371 $ ( 626 ) $ 2,944 $ ( 4,039 ) Total deferred income tax expense (benefit) 2,371 ( 626 ) 2,944 ( 4,039 ) Total income tax expense (benefit) $ 2,371 $ ( 626 ) $ 2,944 $ ( 4,039 ) |
Differences in Tax Provision for Financial Statement Purposes and Expected Tax Provision at Weighted Average Tax Rate | The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate: Quarters Ended June 30, 2023 2022 (Dollars in thousands) Amount % of Pre- Amount % of Pre- Expected tax provision at weighted average tax rate $ 2,459 21.0 % $ ( 2,686 ) 21.0 % Adjustments: Dividend exclusion ( 21 ) ( 0.2 ) ( 24 ) 0.2 Parent income treated as partnership for tax ( 146 ) ( 1.2 ) 1,827 ( 14.3 ) Other 79 0.7 257 ( 2.0 ) Effective income tax expense (benefit) $ 2,371 20.3 % $ ( 626 ) 4.9 % The effective income tax expense rate for the quarter ended June 30, 2023 was 20.3 % compared to an effective income tax benefit rate of 4.9 % for the quarter ended June 30, 2022. The difference between 2023 and 2022 is primarily due to a change in income or loss at the parent company which is treated as a partnership for tax. Six Months Ended June 30, 2023 2022 (Dollars in thousands) Amount % of Pre- Amount % of Pre- Expected tax provision at weighted average tax rate $ 3,103 21.0 % $ ( 6,505 ) 21.0 % Adjustments: Dividend exclusion ( 38 ) ( 0.3 ) ( 46 ) 0.1 Parent (income) loss treated as partnership for tax ( 342 ) ( 2.3 ) 2,070 ( 6.7 ) Other 221 1.5 442 ( 1.4 ) Effective income tax expense (benefit) $ 2,944 19.9 % $ ( 4,039 ) 13.0 % |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses | Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Quarters Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Balance at beginning of period $ 857,520 $ 770,332 $ 832,404 $ 759,904 Less: Ceded reinsurance receivables 73,665 93,194 73,021 94,443 Net balance at beginning of period 783,855 677,138 759,383 665,461 Incurred losses and loss adjustment expenses related to: Current year 78,031 96,189 166,032 183,947 Prior years 51 ( 3,571 ) 51 ( 6,634 ) Total incurred losses and loss adjustment expenses 78,082 92,618 166,083 177,313 Paid losses and loss adjustment expenses related to: Current year 24,565 29,079 34,184 42,394 Prior years 44,354 30,201 98,264 89,904 Total paid losses and loss adjustment expenses 68,919 59,280 132,448 132,298 Net balance at end of period 793,018 710,476 793,018 710,476 Plus: Ceded reinsurance receivables 73,933 94,185 73,933 94,185 Balance at end of period $ 866,951 $ 804,661 $ 866,951 $ 804,661 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Information with Respect to Class A Common Shares that were Surrendered or Repurchased | The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2023: Period (1) Total Number Average Total Number of Shares Purchased as Part of Publicly Announced Plan or Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2) January 1-31, 2023 3,302 (3) $ 23.31 — — January 1-31, 2023 250,000 (4) $ 25.90 250,000 $ 106,604,066 April 1-30, 2023 200,000 (4) $ 28.00 200,000 $ 101,004,066 June 1-30, 2023 15,558 (3) $ 33.74 — $ 101,004,066 Total 468,860 $ 27.04 (1) Based on settlement date. (2) Based on the $ 135 million share repurchase authorization. (3) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock and/or restricted stock units. (4) Purchased as part of the repurchase program announced in October 2022. The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2022: Period (1) Total Number Average Total Number of Shares Purchased as Part of Publicly Announced Plan or Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs January 1-31, 2022 4,781 (2) $ 25.13 — — June 1-30, 2022 11,173 (2) $ 26.28 — — Total 15,954 $ 25.94 — — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock and/or restricted stock units. |
Schedule of Distributions Declared | Distribution payments of $ 0.25 per common share were declared during the six months ended June 30, 2023 as follows: Approval Date Record Date Payment Date Total Distributions Declared March 2, 2023 March 24, 2023 March 31, 2023 $ 3,410 June 1, 2023 June 23, 2023 June 30, 2023 3,375 Various (1) Various Various ( 21 ) Total $ 6,764 (1) Represents distributions declared on unvested shares, net of forfeitures. Distribution payments of $ 0.25 per common share were declared during the six months ended June 30, 2022 as follows: Approval Date Record Date Payment Date Total Distributions Declared March 3, 2022 March 21, 2022 March 31, 2022 $ 3,597 June 2, 2022 June 20, 2022 June 30, 2022 3,602 Various (1) Various Various 190 Total $ 7,389 (1) Represents distributions declared on unvested shares, net of forfeitures. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Quarters Ended Six Months Ended (Dollars in thousands, except share and per share data) 2023 2022 2023 2022 Numerator: Net income (loss) $ 9,337 $ ( 12,162 ) $ 11,831 $ ( 26,935 ) Less: preferred stock distributions 110 110 220 220 Net income (loss) available to common shareholders $ 9,227 $ ( 12,272 ) $ 11,611 $ ( 27,155 ) Denominator: Weighted average shares for basic earnings per share 13,478,014 14,543,234 13,573,841 14,529,170 Non-vested restricted stock units 61,579 — 58,571 — Options 168,391 — 161,809 — Weighted average shares for diluted earnings per share (1) 13,707,984 14,543,234 13,794,221 14,529,170 Earnings per share - Basic $ 0.68 $ ( 0.84 ) $ 0.86 $ ( 1.87 ) Earnings per share - Diluted $ 0.67 $ ( 0.84 ) $ 0.84 $ ( 1.87 ) (1) For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Summary of Business Segment Information | The following are tabulations of business segment information for the quarters and six months ended June 30, 2023 and 2022. Corporate information is included to reconcile segment data to the consolidated financial statements. Quarter Ended June 30, 2023 Commercial Reinsurance (1) Exited Lines Total Revenues: Gross written premiums $ 95,347 $ 14,844 $ ( 91 ) $ 110,100 Net written premiums $ 91,896 $ 14,844 $ ( 744 ) $ 105,996 Net earned premiums $ 93,408 $ 29,585 $ 6,163 $ 129,156 Other income 266 9 26 301 Total revenues 93,674 29,594 6,189 129,457 Losses and Expenses: Net losses and loss adjustment expenses 58,662 19,512 ( 92 ) 78,082 Acquisition costs and other underwriting expenses 33,972 10,737 2,392 47,101 Income (loss) from segments $ 1,040 $ ( 655 ) $ 3,889 $ 4,274 Unallocated Items: Net investment income 13,216 Net realized investment losses ( 761 ) Other loss ( 19 ) Corporate and other operating expenses ( 4,990 ) Interest expense ( 12 ) Income before income taxes 11,708 Income tax expense ( 2,371 ) Net income $ 9,337 Segment assets $ 999,271 $ 383,040 $ 222,491 $ 1,604,802 Corporate assets 169,200 Total assets $ 1,774,002 (1) External business only, excluding business assumed from affiliates. Quarter Ended June 30, 2022 Commercial Reinsurance (1) Exited Lines Total Revenues: Gross written premiums $ 105,010 $ 46,524 $ 45,289 $ 196,823 Net written premiums $ 99,667 $ 46,524 $ 20,967 $ 167,158 Net earned premiums $ 93,997 $ 39,162 $ 22,590 $ 155,749 Other income (loss) 260 20 ( 196 ) 84 Total revenues 94,257 39,182 22,394 155,833 Losses and Expenses: Net losses and loss adjustment expenses 52,804 22,793 17,021 92,618 Acquisition costs and other underwriting expenses 35,543 14,553 11,002 61,098 Income (loss) from segments $ 5,910 $ 1,836 $ ( 5,629 ) $ 2,117 Unallocated Items: Net investment income 1,930 Net realized investment losses ( 9,916 ) Other income 13 Corporate and other operating expenses ( 2,993 ) Interest expense ( 410 ) Loss on extinguishment of debt ( 3,529 ) Loss before income taxes ( 12,788 ) Income tax benefit 626 Net loss ( 12,162 ) Segment assets $ 1,002,120 $ 326,804 $ 384,991 $ 1,713,915 Corporate assets 147,864 Total assets $ 1,861,779 (1) External business only, excluding business assumed from affiliates. Six Months Ended June 30, 2023 Commercial Reinsurance (1) Exited Lines Total Revenues: Gross written premiums $ 190,855 $ 38,260 $ 3,970 $ 233,085 Net written premiums $ 183,130 $ 38,260 $ 467 $ 221,857 Net earned premiums $ 186,590 $ 64,432 $ 18,206 $ 269,228 Other income 533 — 103 636 Total revenues 187,123 64,432 18,309 269,864 Losses and Expenses: Net losses and loss adjustment expenses 118,781 40,775 6,527 166,083 Acquisition costs and other underwriting expenses 69,498 23,553 7,528 100,579 Income (loss) from segments $ ( 1,156 ) $ 104 $ 4,254 $ 3,202 Unallocated Items: Net investment income 25,224 Net realized investment losses ( 2,281 ) Corporate and other operating expenses ( 11,358 ) Interest expense ( 12 ) Income before income taxes 14,775 Income tax expense ( 2,944 ) Net income $ 11,831 Segment assets $ 999,271 $ 383,040 $ 222,491 $ 1,604,802 Corporate assets 169,200 Total assets $ 1,774,002 (1) External business only, excluding business assumed from affiliates. Six Months Ended June 30, 2022 Commercial Reinsurance (1) Exited Lines Total Revenues: Gross written premiums $ 207,858 $ 87,520 $ 92,428 $ 387,806 Net written premiums $ 197,830 $ 87,520 $ 41,290 $ 326,640 Net earned premiums $ 185,194 $ 73,460 $ 45,918 $ 304,572 Other income 519 — 4 523 Total revenues 185,713 73,460 45,922 305,095 Losses and Expenses: Net losses and loss adjustment expenses 106,463 43,852 26,998 177,313 Acquisition costs and other underwriting expenses 69,069 26,514 22,207 117,790 Income (loss) from segments $ 10,181 $ 3,094 $ ( 3,283 ) $ 9,992 Unallocated Items: Net investment income 8,522 Net realized investment losses ( 35,301 ) Corporate and other operating expenses ( 7,653 ) Interest expense ( 3,005 ) Loss on extinguishment of debt ( 3,529 ) Loss before income taxes ( 30,974 ) Income tax benefit 4,039 Net loss $ ( 26,935 ) Segment assets $ 1,002,120 $ 326,804 $ 384,991 $ 1,713,915 Corporate assets 147,864 Total assets $ 1,861,779 (1) External business only, excluding business assumed from affiliates. |
Principles of Consolidation a_3
Principles of Consolidation and Basis of Presentation - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2023 Segment | |
Organization And Basis Of Presentation [Line Items] | |
Date of incorporation | Jun. 23, 2020 |
State of incorporation | DE |
Redomestication date | Aug. 28, 2020 |
Kind of listing | class A common shares |
Number of business segments | 2 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Dec. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, description | The Company restructured its insurance operations to strengthen its market presence and enhance its focus on GBLI’s core Package Specialty and Targeted Specialty products. As a result, the Company exited its four brokerage divisions: Professional Liability, Excess Casualty, Environmental, and Middle Market Property. The Company ceased writing new business and existing renewals were placed in run-off for these four divisions. The restructuring plan, which was initiated in the fourth quarter of 2022, was completed in the first quarter of 2023. | ||
Restructuring, initiation date | Dec. 31, 2022 | ||
Restructuring, completion date | Mar. 31, 2023 | ||
Restructuring cost | $ 3.4 | $ 2.1 | $ 5.5 |
Summary of Charges Incurred by
Summary of Charges Incurred by Expense Type and Remaining Liability (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Non-cash asset charges | $ (812) | |
Cash payments | $ (4,249) | |
Liability | 507 | 2,635 |
Corporate and Other Operating Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges incurred | 2,121 | 2,635 |
Acquisition costs and other underwriting expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges incurred | 812 | |
Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Non-cash asset charges | 0 | |
Cash payments | (4,249) | |
Liability | 507 | 2,635 |
Employee Severance [Member] | Corporate and Other Operating Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges incurred | 2,121 | 2,635 |
Employee Severance [Member] | Acquisition costs and other underwriting expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges incurred | 0 | |
Lease Right of Use Asset Impairment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Non-cash asset charges | (812) | |
Cash payments | 0 | |
Liability | 0 | 0 |
Lease Right of Use Asset Impairment [Member] | Corporate and Other Operating Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges incurred | $ 0 | 0 |
Lease Right of Use Asset Impairment [Member] | Acquisition costs and other underwriting expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges incurred | $ 812 |
Schedule of Amortized Cost and
Schedule of Amortized Cost and Estimated Fair Value of Company's Fixed Maturities Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | $ 1,311,567 | $ 1,301,723 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 747 | 591 |
Fixed maturities, Gross Unrealized losses | (46,708) | (54,116) |
Fixed maturities, Estimated Fair Value | 1,265,606 | 1,248,198 |
U.S. Treasuries | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 396,451 | 352,533 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 12 | 0 |
Fixed maturities, Gross Unrealized losses | (7,701) | (8,430) |
Fixed maturities, Estimated Fair Value | 388,762 | 344,103 |
Obligations of States and Political Subdivisions | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 32,272 | 33,471 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 0 | 0 |
Fixed maturities, Gross Unrealized losses | (1,666) | (1,876) |
Fixed maturities, Estimated Fair Value | 30,606 | 31,595 |
Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 65,086 | 67,560 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 396 | 165 |
Fixed maturities, Gross Unrealized losses | (4,816) | (5,609) |
Fixed maturities, Estimated Fair Value | 60,666 | 62,116 |
Asset-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 212,095 | 198,161 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 186 | 390 |
Fixed maturities, Gross Unrealized losses | (7,966) | (9,151) |
Fixed maturities, Estimated Fair Value | 204,315 | 189,400 |
Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 86,313 | 104,777 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 21 | 20 |
Fixed maturities, Gross Unrealized losses | (5,880) | (6,133) |
Fixed maturities, Estimated Fair Value | 80,454 | 98,664 |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 343,600 | 353,622 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 102 | 16 |
Fixed maturities, Gross Unrealized losses | (12,038) | (14,858) |
Fixed maturities, Estimated Fair Value | 331,664 | 338,780 |
Foreign Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 175,750 | 191,599 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | 0 |
Fixed maturities, Gross Unrealized Gains | 30 | 0 |
Fixed maturities, Gross Unrealized losses | (6,641) | (8,059) |
Fixed maturities, Estimated Fair Value | $ 169,139 | $ 183,540 |
Schedule of Investments in Equi
Schedule of Investments in Equity Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, at fair value | $ 17,153 | $ 17,520 |
Common Stock | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, at fair value | 1,113 | 1,271 |
Preferred Stock | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, at fair value | $ 16,040 | $ 16,249 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2021 | Dec. 31, 2022 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Investments in a single issuer as a percentage of shareholders' equity | 2% | 2.40% | |
Weighted average life of fixed maturities securities | 5 years | ||
Maturity period of securities that reinvested to fixed income investments | 2 years | ||
Percentage of book yield due to reinvested to fixed income investments | 3.80% | 2.20% | |
Fixed maturity securities with market value | $ 0 | $ 0 | |
Investments in insurance enhanced bonds | $ 6,200,000 | ||
Insurance enhanced bonds as a percentage of total cash and invested assets | 0.50% | ||
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | $ 6,200,000 | ||
Variable Interest Entity, Not Primary Beneficiary | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Ownership interest exceeds respective investments | 3% | ||
One of the Company's variable interest VIE's, invests in distressed securities and assets | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Significant variable interest in carrying value of the non-consolidated VIE | $ 4,400,000 | 4,800,000 | |
Variable interest entities, maximum exposure to loss | 18,600,000 | 19,000,000 | |
Variable interest entities, maximum exposure to loss | 4,400,000 | 4,800,000 | |
Second VIE that invests in REIT qualifying assets | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Significant variable interest in carrying value of the non-consolidated VIE | 9,400,000 | 9,800,000 | |
Variable interest entities, maximum exposure to loss | 9,400,000 | 9,800,000 | |
Assured Guaranty Corporation | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | 5,000,000 | ||
Ambac Financial Group | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | 1,200,000 | ||
Other Assets | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Accrued interest receivable related to fixed maturities | 8,300,000 | $ 8,400,000 | |
U.S. Treasuries | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Gross unrealized losses | 7,701,000 | ||
Obligations of States and Political Subdivisions | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Gross unrealized losses | 1,666,000 | ||
Mortgage Backed Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Gross unrealized losses | 4,816,000 | ||
Asset-backed Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Gross unrealized losses | $ 7,966,000 | ||
Weighted average credit enhancement | 35% | ||
Commercial Mortgage-Backed Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Gross unrealized losses | $ 5,880,000 | ||
Weighted average credit enhancement | 46.90% | ||
Corporate Bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Gross unrealized losses | $ 12,038,000 | ||
Foreign Corporate Bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Gross unrealized losses | $ 6,641,000 |
Summary of Amortized Cost and E
Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | $ 489,914 | |
Due in one year through five years, Amortized Cost | 428,150 | |
Due in five years through ten years, Amortized Cost | 17,529 | |
Due after fifteen years, Amortized Cost | 12,480 | |
Fixed maturities, Amortized Cost | 1,311,567 | $ 1,301,723 |
Due in one year or less, Estimated Fair value | 483,894 | |
Due in one year through five years, Estimated Fair value | 410,281 | |
Due in five years through ten years, Estimated Fair value | 15,287 | |
Due after fifteen years, Estimated Fair value | 10,709 | |
Fixed Maturities, estimated fair value | 1,265,606 | 1,248,198 |
Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 65,086 | |
Fixed maturities, Amortized Cost | 65,086 | 67,560 |
Estimated Fair value | 60,666 | |
Fixed Maturities, estimated fair value | 60,666 | 62,116 |
Asset-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 212,095 | |
Fixed maturities, Amortized Cost | 212,095 | 198,161 |
Estimated Fair value | 204,315 | |
Fixed Maturities, estimated fair value | 204,315 | 189,400 |
Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 86,313 | |
Fixed maturities, Amortized Cost | 86,313 | 104,777 |
Estimated Fair value | 80,454 | |
Fixed Maturities, estimated fair value | $ 80,454 | $ 98,664 |
Summary of Securities with Gros
Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
U.S. Treasuries | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total, Gross Unrealized Losses | $ (7,701) | |
Obligations of States and Political Subdivisions | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total, Gross Unrealized Losses | (1,666) | |
Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total, Gross Unrealized Losses | (4,816) | |
Asset-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total, Gross Unrealized Losses | (7,966) | |
Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total, Gross Unrealized Losses | (5,880) | |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total, Gross Unrealized Losses | (12,038) | |
Foreign Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total, Gross Unrealized Losses | (6,641) | |
Fixed Income Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 413,333 | $ 992,284 |
Less than 12 months, Gross Unrealized Losses | (8,168) | (34,755) |
12 months or longer, Fair Value | 696,260 | 212,980 |
12 months or longer, Gross Unrealized Losses | (38,540) | (19,361) |
Total, Fair Value | 1,109,593 | 1,205,264 |
Total, Gross Unrealized Losses | (46,708) | (54,116) |
Fixed Income Securities | U.S. Treasuries | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 198,477 | 335,781 |
Less than 12 months, Gross Unrealized Losses | (3,953) | (7,518) |
12 months or longer, Fair Value | 120,678 | 8,322 |
12 months or longer, Gross Unrealized Losses | (3,748) | (912) |
Total, Fair Value | 319,155 | 344,103 |
Total, Gross Unrealized Losses | (7,701) | (8,430) |
Fixed Income Securities | Obligations of States and Political Subdivisions | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 7,810 | 27,772 |
Less than 12 months, Gross Unrealized Losses | (222) | (1,378) |
12 months or longer, Fair Value | 19,795 | 3,778 |
12 months or longer, Gross Unrealized Losses | (1,444) | (498) |
Total, Fair Value | 27,605 | 31,550 |
Total, Gross Unrealized Losses | (1,666) | (1,876) |
Fixed Income Securities | Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 16,354 | 51,517 |
Less than 12 months, Gross Unrealized Losses | (707) | (4,228) |
12 months or longer, Fair Value | 33,913 | 7,860 |
12 months or longer, Gross Unrealized Losses | (4,109) | (1,381) |
Total, Fair Value | 50,267 | 59,377 |
Total, Gross Unrealized Losses | (4,816) | (5,609) |
Fixed Income Securities | Asset-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 91,904 | 97,857 |
Less than 12 months, Gross Unrealized Losses | (1,888) | (3,610) |
12 months or longer, Fair Value | 95,269 | 62,689 |
12 months or longer, Gross Unrealized Losses | (6,078) | (5,541) |
Total, Fair Value | 187,173 | 160,546 |
Total, Gross Unrealized Losses | (7,966) | (9,151) |
Fixed Income Securities | Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 1,678 | 67,926 |
Less than 12 months, Gross Unrealized Losses | (69) | (4,072) |
12 months or longer, Fair Value | 76,056 | 27,907 |
12 months or longer, Gross Unrealized Losses | (5,811) | (2,061) |
Total, Fair Value | 77,734 | 95,833 |
Total, Gross Unrealized Losses | (5,880) | (6,133) |
Fixed Income Securities | Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 74,010 | 261,123 |
Less than 12 months, Gross Unrealized Losses | (1,175) | (8,480) |
12 months or longer, Fair Value | 230,601 | 71,192 |
12 months or longer, Gross Unrealized Losses | (10,863) | (6,378) |
Total, Fair Value | 304,611 | 332,315 |
Total, Gross Unrealized Losses | (12,038) | (14,858) |
Fixed Income Securities | Foreign Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 23,100 | 150,308 |
Less than 12 months, Gross Unrealized Losses | (154) | (5,469) |
12 months or longer, Fair Value | 119,948 | 31,232 |
12 months or longer, Gross Unrealized Losses | (6,487) | (2,590) |
Total, Fair Value | 143,048 | 181,540 |
Total, Gross Unrealized Losses | $ (6,641) | $ (8,059) |
Schedule of Impairments on Inve
Schedule of Impairments on Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | [1] | Jun. 30, 2023 | Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Impairment related to intent to sell | $ 0 | $ (680) | $ 0 | $ (26,205) | |
Total | $ 0 | $ (680) | $ 0 | $ (26,205) | |
[1] In response to a rising interest rate environment, the Company took action early in April 2022 to shorten the duration of its fixed maturities portfolio. In connection with these actions, the Company identified fixed maturities securities with a weighted average life of five years or greater as having an intent to sell resulting in other-than-temporary impairment losses. The majority of which were sold in the 2nd quarter of 2022. Most of the proceeds from the sale of these securities were reinvested into fixed income investments with maturities of two years . As a result of these actions, the Company's book yield rose over time. Book yield was approximately 2.2 % at December 31, 2021 and 3.8 % at June 30, 2023. |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income, Net of Tax (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||||||
Fixed maturities | $ (45,961) | $ (53,525) | ||||
Foreign currency fluctuations | (328) | (127) | ||||
Deferred taxes | 9,118 | 10,594 | ||||
Accumulated other comprehensive income (loss), net of tax | $ (37,171) | $ (34,615) | $ (43,058) | $ (26,625) | $ (12,772) | $ 6,404 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, net of tax | $ (34,615) | $ (12,772) | $ (43,058) | $ 6,404 |
Other comprehensive income (loss) before reclassification, before tax | (3,704) | (26,805) | 6,170 | (79,413) |
Amounts reclassified from accumulated other comprehensive income, before tax | 587 | 9,317 | 1,193 | 38,081 |
Other comprehensive income (loss), before tax | (3,117) | (17,488) | 7,363 | (41,332) |
Income tax (expense) benefit | 561 | 3,635 | (1,476) | 8,303 |
Ending balance, net of tax | (37,171) | (26,625) | (37,171) | (26,625) |
Unrealized Gains and Losses on Available for Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, net of tax | (34,314) | (12,769) | (42,958) | 6,519 |
Other comprehensive income (loss) before reclassification, before tax | (3,757) | (26,518) | 6,371 | (79,267) |
Amounts reclassified from accumulated other comprehensive income, before tax | 587 | 9,317 | 1,193 | 38,081 |
Other comprehensive income (loss), before tax | (3,170) | (17,201) | 7,564 | (41,186) |
Income tax (expense) benefit | 572 | 3,575 | (1,518) | 8,272 |
Ending balance, net of tax | (36,912) | (26,395) | (36,912) | (26,395) |
Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, net of tax | (301) | (3) | (100) | (115) |
Other comprehensive income (loss) before reclassification, before tax | 53 | (287) | (201) | (146) |
Amounts reclassified from accumulated other comprehensive income, before tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), before tax | 53 | (287) | (201) | (146) |
Income tax (expense) benefit | (11) | 60 | 42 | 31 |
Ending balance, net of tax | $ (259) | $ (230) | $ (259) | $ (230) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | $ 587 | $ 9,317 | $ 1,193 | $ 38,081 |
Income tax expense (benefit) | (2,371) | 626 | (2,944) | 4,039 |
Unrealized Gains and Losses on Available for Sale Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 587 | 9,317 | 1,193 | 38,081 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications, net of tax | 479 | 7,877 | 966 | 30,962 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available for Sale Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other net realized investment (gains) losses | 587 | 8,637 | 1,193 | 11,876 |
Other than temporary impairment losses on investments | 0 | 680 | 0 | 26,205 |
Total before tax | 587 | 9,317 | 1,193 | 38,081 |
Income tax expense (benefit) | $ (108) | $ (1,440) | $ (227) | $ (7,119) |
Components of Net Realized Inve
Components of Net Realized Investment Gains (Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Schedule Of Available For Sale Securities [Line Items] | |||||
Total net realized investment gains (losses) | $ (761) | $ (9,916) | $ (2,281) | $ (35,301) | |
Equity securities, Gross realized gains | 209 | 2 | 784 | 1,806 | |
Equity securities, Gross realized losses | (383) | (2,417) | (1,872) | (5,566) | |
Equity securities, Total net realized investment gains (losses) | (174) | (2,415) | (1,088) | (3,760) | |
Not Designated as Hedging Instrument | Interest Rate Swap | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Gross realized gains | 0 | 2,872 | 0 | 8,960 | |
Gross realized losses | 0 | (1,056) | 0 | (2,420) | |
Total net realized investment gains (losses) | [1] | 0 | 1,816 | 0 | 6,540 |
Fixed Income Securities | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Gross realized gains | 9 | 456 | 14 | 662 | |
Gross realized losses | (596) | (9,773) | (1,207) | (38,743) | |
Total net realized investment gains (losses) | $ (587) | $ (9,317) | $ (1,193) | $ (38,081) | |
[1] Includes periodic net interest settlements related to the derivatives of $ 1.1 million for the quarters ended June 30, 2022 and $ 2.5 million for the six months ended June 30, 2022. |
Components of Net Realized In_2
Components of Net Realized Investment Gains (Losses) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Schedule Of Available For Sale Securities [Line Items] | |||||
Net interest settlements | $ 0 | $ 1,816 | $ 0 | $ 6,540 | |
Interest Rate Swap | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Net interest settlements | $ 1,100 | $ 0 | $ 2,500 | $ 0 |
Summary of Calculation of Reali
Summary of Calculation of Realized Gains and Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Equity securities, Total net realized investment gains (losses) | $ (174) | $ (2,415) | $ (1,088) | $ (3,760) |
Less: net gains (losses) recognized during the period on equity securities sold during the period | 0 | (498) | 18 | 10,616 |
Unrealized gains (losses) recognized during the reporting period on equity securities | $ (174) | $ (1,917) | $ (1,106) | $ (14,376) |
Schedule of Proceeds From Sales
Schedule of Proceeds From Sales and Redemptions of Available for Sale Securities (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Fixed maturities | $ 96,890 | $ 829,205 |
Equity securities | $ 24 | $ 88,726 |
Schedule of Investment Income (
Schedule of Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule Of Available For Sale Securities [Line Items] | ||||
Investment income | $ 13,567 | $ 2,541 | $ 25,947 | $ 9,737 |
Investment expense | (351) | (611) | (723) | (1,215) |
Net investment income | 13,216 | 1,930 | 25,224 | 8,522 |
Fixed Income Securities | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Investment income | 12,313 | 7,467 | 23,773 | 13,871 |
Equity Securities | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Investment income | 257 | 275 | 447 | 609 |
Cash and Cash Equivalents | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Investment income | 300 | 99 | 563 | 131 |
Other Invested Assets | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Investment income | $ 697 | $ (5,300) | $ 1,164 | $ (4,874) |
Schedule of Total Investment Re
Schedule of Total Investment Return (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Investments, Debt and Equity Securities [Abstract] | |||||
Net investment income | $ 13,216 | $ 1,930 | $ 25,224 | $ 8,522 | |
Net realized investment losses | (761) | (9,916) | (2,281) | (35,301) | |
Change in unrealized holding gains (losses) | (3,117) | (17,488) | 7,363 | (41,332) | |
Net realized and unrealized investment returns | (3,878) | (27,404) | 5,082 | (76,633) | |
Total investment return | $ 9,338 | $ (25,474) | $ 30,306 | $ (68,111) | |
Total investment return % | [1] | 0.70% | (1.80%) | 2.30% | (4.80%) |
Average investment portfolio | [2] | $ 1,345,235 | $ 1,395,519 | $ 1,343,024 | $ 1,429,227 |
[1] Not annualized. Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period. |
Summary of Estimated Fair Value
Summary of Estimated Fair Values of Bonds Held on Deposit (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Estimated Fair Value | [1] | $ 185,828 | $ 181,191 |
On Deposit With Governmental Authorities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Estimated Fair Value | 20,983 | 19,290 | |
Held In Trust Pursuant To Third Party Requirements | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Estimated Fair Value | $ 164,845 | $ 161,901 | |
[1] Includes cash and cash equivalents of $ 9.3 million and $ 3.7 million at June 30, 2023 and December 31, 2022 , respectively, with the remainder related to bonds available for sale. |
Summary of Estimated Fair Val_2
Summary of Estimated Fair Values of Bonds Held on Deposit (Parenthetical) (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and cash equivalents | $ 45,447 | $ 38,846 |
Remainder Related to Bonds Available for Sale | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and cash equivalents | $ 9,300 | $ 3,700 |
Summary of Net Gain (Loss) Incl
Summary of Net Gain (Loss) Included in Consolidated Statements of Operations for Changes in Fair Value of Derivatives and Periodic Net Interest Settlements Under Derivatives (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gain (loss) for changes in fair value and net settlements of derivatives | $ 0 | $ 1,816 | $ 0 | $ 6,540 | |
Interest Rate Swap | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gain (loss) for changes in fair value and net settlements of derivatives | 1,100 | 0 | 2,500 | $ 0 | |
Interest Rate Swap | Net Realized Investment Gains (Losses) | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gain (loss) for changes in fair value and net settlements of derivatives | $ 0 | $ 1,816 | $ 0 | $ 6,540 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Outstanding amounts related to the interest rate swap agreements | $ 0 | $ 1,816 | $ 0 | $ 6,540 | |
Interest Rate Swap | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Outstanding amounts related to the interest rate swap agreements | $ 1,100 | $ 0 | $ 2,500 | $ 0 |
Company's Invested Assets Measu
Company's Invested Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | $ 1,265,606 | $ 1,248,198 |
Equity securities | 17,153 | 17,520 |
U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 388,762 | 344,103 |
Obligations of States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 30,606 | 31,595 |
Mortgage Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 60,666 | 62,116 |
Commercial Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 80,454 | 98,664 |
Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 204,315 | 189,400 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 331,664 | 338,780 |
Foreign Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 169,139 | 183,540 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 1,265,606 | 1,248,198 |
Equity securities | 17,153 | 17,520 |
Total invested assets | 1,282,759 | 1,265,718 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 388,762 | 344,103 |
Equity securities | 0 | 0 |
Total invested assets | 388,762 | 344,103 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 874,170 | 900,795 |
Equity securities | 16,040 | 16,249 |
Total invested assets | 890,210 | 917,044 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 2,674 | 3,300 |
Equity securities | 1,113 | 1,271 |
Total invested assets | 3,787 | 4,571 |
Fair Value, Measurements, Recurring | U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 388,762 | 344,103 |
Fair Value, Measurements, Recurring | U.S. Treasuries | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 388,762 | 344,103 |
Fair Value, Measurements, Recurring | U.S. Treasuries | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. Treasuries | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 30,606 | 31,595 |
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 30,606 | 31,595 |
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Mortgage Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 60,666 | 62,116 |
Fair Value, Measurements, Recurring | Mortgage Backed Securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Mortgage Backed Securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 59,717 | 61,156 |
Fair Value, Measurements, Recurring | Mortgage Backed Securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 949 | 960 |
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 80,454 | 98,664 |
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 80,454 | 98,664 |
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 204,315 | 189,400 |
Fair Value, Measurements, Recurring | Asset-backed Securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Asset-backed Securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 204,315 | 189,073 |
Fair Value, Measurements, Recurring | Asset-backed Securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | 327 |
Fair Value, Measurements, Recurring | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 331,664 | 338,780 |
Fair Value, Measurements, Recurring | Corporate Bonds | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate Bonds | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 329,939 | 336,767 |
Fair Value, Measurements, Recurring | Corporate Bonds | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 1,725 | 2,013 |
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 169,139 | 183,540 |
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 169,139 | 183,540 |
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | $ 0 | $ 0 |
Changes in Level 3 Investments
Changes in Level 3 Investments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | ||||
Beginning balance | $ 4,335 | $ 4,288 | $ 4,571 | $ 2,769 |
Included in accumulated other comprehensive income | (3) | 23 | 7 | 15 |
Included in earnings attributable to realized gains / losses | (113) | (102) | (172) | (170) |
Transfers into level 3 | 0 | 607 | 0 | 857 |
Amortization of bond premium and discount, net | 2 | 2 | 4 | 2 |
Purchases | 39 | 55 | 113 | 1,479 |
Sales | (473) | (523) | (736) | (602) |
Ending balance | 3,787 | 4,350 | 3,787 | 4,350 |
Gains (losses) included in earnings attributable to the change in unrealized gains (losses) related to assets still held at end of reporting period | $ (103) | $ (9) | $ (162) | $ (14) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity Method Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity in the earnings of liability companies or partnerships | $ 0.5 | $ (5.3) | $ 0.6 | $ (5.4) |
Ownership interest exceeds respective investments | 3% | 3% | ||
Variable Interest Entity, Not Primary Beneficiary | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Ownership interest exceeds respective investments | 3% | 3% |
Fair Value and Future Funding C
Fair Value and Future Funding Commitments Related to These Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 37,282 | $ 38,176 | ||
Future Funding Commitments | 14,214 | 14,214 | ||
European Non-Performing Loan Fund, LP | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [1] | 4,406 | 4,832 | |
Future Funding Commitments | [1] | 14,214 | 14,214 | |
Mortgage Debt Fund, LP | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [2] | 9,374 | 9,771 | |
Future Funding Commitments | 0 | 0 | [2] | |
Global Debt Fund, LP | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [3] | 23,502 | 23,573 | |
Future Funding Commitments | [3] | $ 0 | $ 0 | |
[1] This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. This limited partnership invests in REIT qualifying assets such as mortgage loans, investor property loans, and commercial mortgage loans. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. This limited partnership invests in performing, stressed or distressed securities and loans across the global fixed income markets. The Company does have the contractual option to withdraw all or a portion of its limited partnership interest by providing notice to the fund. |
Allowance for Expected Credit_3
Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables - Schedule of Allowance for Credit Losses Related to Premium Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Premium Receivables | ||||
Beginning balance | $ 3,379 | $ 2,937 | $ 3,322 | $ 2,996 |
Current period provision for expected credit losses | 1,369 | 536 | 1,717 | 619 |
Write-offs | (692) | (554) | (983) | (696) |
Ending balance | $ 4,056 | $ 2,919 | $ 4,056 | $ 2,919 |
Allowance for Expected Credit_4
Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables - Schedule of Allowance for Credit Losses Related to Reinsurance Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reinsurance Receivables | ||||
Beginning balance | $ 8,992 | $ 8,992 | $ 8,992 | $ 8,992 |
Current period provision for expected credit losses | 0 | 0 | 0 | 0 |
Write-offs | 0 | 0 | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 | 0 |
Ending balance | $ 8,992 | $ 8,992 | $ 8,992 | $ 8,992 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Income Tax [Line Items] | |||||
Effective income tax expense (benefit) rate | 20.30% | 4.90% | 19.90% | 13% | |
Net operating loss carryforwards | $ 98,100,000 | $ 98,100,000 | $ 116,400,000 | ||
Section 163(j) carryforward | $ 0 | $ 0 | $ 0 | $ 0 | |
UNITED STATES | |||||
Income Tax [Line Items] | |||||
Statutory income tax rates | 21% | ||||
BERMUDA | |||||
Income Tax [Line Items] | |||||
Statutory income tax rates | 0% | ||||
IRELAND | Non Trading Income | |||||
Income Tax [Line Items] | |||||
Statutory income tax rates | 25% | ||||
IRELAND | Capital Gain | |||||
Income Tax [Line Items] | |||||
Statutory income tax rates | 33% | ||||
IRELAND | Trading Income | |||||
Income Tax [Line Items] | |||||
Statutory income tax rates | 12.50% |
Components of Income Tax Expens
Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Deferred income tax expense (benefit): | ||||
U.S. Federal | $ 2,371 | $ (626) | $ 2,944 | $ (4,039) |
Total deferred income tax expense (benefit) | 2,371 | (626) | 2,944 | (4,039) |
Total deferred income tax expense (benefit) | $ 2,371 | $ (626) | $ 2,944 | $ (4,039) |
Differences in Tax Provision fo
Differences in Tax Provision for Financial Statement Purposes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Expected tax provision at weighted average tax rate | $ 2,459 | $ (2,686) | $ 3,103 | $ (6,505) |
Adjustments: | ||||
Dividend exclusion | (21) | (24) | (38) | (46) |
Parent (income) loss treated as partnership for tax | (146) | 1,827 | (342) | 2,070 |
Other | 79 | 257 | 221 | 442 |
Total deferred income tax expense (benefit) | $ 2,371 | $ (626) | $ 2,944 | $ (4,039) |
Expected tax provision at weighted average | 21% | 21% | 21% | 21% |
Adjustments: | ||||
Dividend exclusion, % of Pre-Tax Income | (0.20%) | 0.20% | (0.30%) | 0.10% |
Parent (income) loss treated as partnership for tax, % of Pre-Tax Income | (1.20%) | (14.30%) | (2.30%) | (6.70%) |
Other, % of Pre-Tax Income | 0.70% | (2.00%) | 1.50% | (1.40%) |
Effective income tax expense (benefit) | 20.30% | 4.90% | 19.90% | 13% |
Summarized Activity in Liabilit
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Insurance [Abstract] | ||||
Balance at beginning of period | $ 857,520 | $ 770,332 | $ 832,404 | $ 759,904 |
Less: Ceded reinsurance receivables | 73,665 | 93,194 | 73,021 | 94,443 |
Net balance at beginning of period | 783,855 | 677,138 | 759,383 | 665,461 |
Incurred losses and loss adjustment expenses related to: | ||||
Current year | 78,031 | 96,189 | 166,032 | 183,947 |
Prior years | 51 | (3,571) | 51 | (6,634) |
Total incurred losses and loss adjustment expenses | 78,082 | 92,618 | 166,083 | 177,313 |
Paid losses and loss adjustment expenses related to: | ||||
Current year | 24,565 | 29,079 | 34,184 | 42,394 |
Prior years | 44,354 | 30,201 | 98,264 | 89,904 |
Total paid losses and loss adjustment expenses | 68,919 | 59,280 | 132,448 | 132,298 |
Net balance at end of period | 793,018 | 710,476 | 793,018 | 710,476 |
Plus: Ceded reinsurance receivables | 73,933 | 94,185 | 73,933 | 94,185 |
Balance at end of period | $ 866,951 | $ 804,661 | $ 866,951 | $ 804,661 |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ 51 | $ (3,571) | $ 51 | $ (6,634) |
Commercial Specialty | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 5,000 | (2,300) | 6,500 | (400) |
Commercial Specialty | Property Lines | Accident Years 2015 and 2018 through 2021 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (3,400) | |||
Commercial Specialty | Property Lines | Accident years 2015, 2020 and 2022 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,000) | |||
Commercial Specialty | Property Lines | Accident Years 2015, 2018, 2019 and 2021 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,500) | |||
Commercial Specialty | Property Lines | Accident Yeas 2015, 2019, 2020, 2021 and 2022 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (800) | |||
Commercial Specialty | General Liability | Accident Years Prior to 2006 and 2017 through 2022 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 6,100 | |||
Commercial Specialty | General Liability | Accident Years Prior to 2005 and 2005 through 2007 and 2010 through 2021 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 1,200 | |||
Commercial Specialty | General Liability | Accident Years 2005 2010 through 2015, 2016, 2017, 2018, 2019, 2020 and 2021 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 1,200 | |||
Commercial Specialty | General Liability | Accident Years Prior to 2006, 2011, 2013, 2015, 2017 and 2019 through 2022 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 7,300 | |||
Reinsurance Operations | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 1,000 | (1,200) | 1,000 | (1,200) |
Reinsurance Operations | General Liability | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (100) | (100) | ||
Reinsurance Operations | Professional | Accident Year 2022 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 1,100 | 1,100 | ||
Reinsurance Operations | Professional | Accident Year 2016 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,200) | (1,200) | ||
Exited Lines | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (5,900) | (100) | (7,400) | (5,000) |
Exited Lines | Property Lines | Accident Years 2011, 2015 through 2018 and 2021 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 2,000 | |||
Exited Lines | Property Lines | Accident Years 2014, 2017, 2020, 2021 and 2022 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 1,100 | |||
Exited Lines | Property Lines | Accident Years 2011, 2015 through 2017, 2018, 2020 and 2021 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (200) | |||
Exited Lines | Property Lines | Accident Years 2014, 2016, 2017, 2020, 2021 and 2022 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 1,300 | |||
Exited Lines | General Liability | Accident Years 2014 through 2017 and 2022 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,400) | |||
Exited Lines | General Liability | Accident years 2014 through 2017 and 2019 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (900) | |||
Exited Lines | General Liability | Accident Years 2017, 2018, 2019 and 2021 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (600) | |||
Exited Lines | Reinsurance | Accident Years 2012 and 2015 through 2021 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (6,200) | $ (7,300) | ||
Exited Lines | Reinsurance | Accident Years 2017 through 2021 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (2,100) | $ (4,300) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||||||
Oct. 21, 2022 USD ($) | Jun. 30, 2023 USD ($) Stockholder $ / shares | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2023 USD ($) Stockholder $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 08, 2023 USD ($) | Jan. 03, 2023 USD ($) | Dec. 31, 2022 USD ($) | ||
Equity [Line Items] | |||||||||
Stock repurchase program, expiration date | Dec. 31, 2027 | ||||||||
Dividend & distribution payable, per share | $ / shares | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | |||||
Distribution paid to preferred shareholder | $ 110,000 | $ 110,000 | $ 220,000 | $ 220,000 | |||||
Accrued distributions | 300,000 | 300,000 | $ 1,100,000 | ||||||
Distributions Paid | |||||||||
Equity [Line Items] | |||||||||
Distribution paid to preferred shareholder | 100,000 | $ 100,000 | 200,000 | $ 200,000 | |||||
Maximum | |||||||||
Equity [Line Items] | |||||||||
Accrued preferred distributions | $ 100,000 | $ 100,000 | $ 100,000 | ||||||
Class A Common Shares | |||||||||
Equity [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 32,000,000 | $ 135,000,000 | $ 60,000,000 | ||||||
Shares surrendered, repurchased or redeemed | shares | [1] | 468,860 | 15,954 | ||||||
Voting rights | one | ||||||||
Average repurchase cost per share | $ / shares | [1] | $ 27.04 | $ 25.94 | ||||||
Number of shareholders | Stockholder | 140 | 140 | |||||||
Class B Common Shares | |||||||||
Equity [Line Items] | |||||||||
Shares surrendered, repurchased or redeemed | shares | 0 | 0 | |||||||
Voting rights | ten | ||||||||
Number of shareholders | Stockholder | 2 | 2 | |||||||
Series A Preferred Interest | |||||||||
Equity [Line Items] | |||||||||
Number of shareholders | Stockholder | 1 | 1 | |||||||
[1] Based on settlement date. |
Information with Respect to Cla
Information with Respect to Class A Common Shares that were Surrendered or Repurchased (Detail) - Class A Common Shares - USD ($) | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased | [1] | 468,860 | 15,954 |
Average Price Paid Per Share | [1] | $ 27.04 | $ 25.94 |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1] | $ 0 | |
January 1-31, 2023 | Employee | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased | [1],[2] | 3,302 | |
Average Price Paid Per Share | [1] | $ 23.31 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1],[3] | $ 0 | |
January 1-31, 2023 | $135 Million Share Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased | [1],[4] | 250,000 | |
Average Price Paid Per Share | [1] | $ 25.9 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 250,000 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1],[3] | $ 106,604,066 | |
April 1-30, 2023 | $135 Million Share Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased | [1],[4] | 200,000 | |
Average Price Paid Per Share | [1] | $ 28 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 200,000 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1],[3] | $ 101,004,066 | |
June 1-30, 2023 | $135 Million Share Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased | [1],[4] | 15,558 | |
Average Price Paid Per Share | [1] | $ 33.74 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1],[3] | $ 101,004,066 | |
January 1-31, 2022 | Employee | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased | [1],[2] | 4,781 | |
Average Price Paid Per Share | [1] | $ 25.13 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1] | $ 0 | |
June 1-30, 2022 | Employee | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased | [1],[2] | 11,173 | |
Average Price Paid Per Share | [1] | $ 26.28 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1] | $ 0 | |
[1] Based on settlement date. Surrendered by employees as payment of taxes withheld on the vesting of restricted stock and/or restricted stock units. Based on the $ 135 million share repurchase authorization. Purchased as part of the repurchase program announced in October 2022. |
Information with Respect to C_2
Information with Respect to Class A Common Shares that were Surrendered or Repurchased (Parenthetical) (Details) - USD ($) | Jun. 08, 2023 | Jan. 03, 2023 | Oct. 21, 2022 |
Class A Common Shares | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 135,000,000 | $ 60,000,000 | $ 32,000,000 |
Schedule of Distributions Decla
Schedule of Distributions Declared (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||||||||||
Jun. 30, 2023 | Jun. 01, 2023 | Mar. 31, 2023 | Mar. 02, 2023 | Jun. 30, 2022 | Jun. 02, 2022 | Mar. 31, 2022 | Mar. 03, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Dividends Payable [Line Items] | |||||||||||
Approval Date | Jun. 01, 2023 | Mar. 02, 2023 | Jun. 02, 2022 | Mar. 03, 2022 | |||||||
Record Date | Jun. 23, 2023 | Mar. 24, 2023 | Jun. 20, 2022 | Mar. 21, 2022 | |||||||
Payment Date | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |||||||
Payment of dividends | $ 3,602 | $ 3,597 | $ 6,764 | $ 7,389 | |||||||
Payment of dividends | $ 3,375 | $ 3,410 | |||||||||
Unvested Shares, Net of Forfeitures | |||||||||||
Dividends Payable [Line Items] | |||||||||||
Approval Date | [1] | Various | Various | ||||||||
Record Date | [1] | Various | Various | ||||||||
Payment Date | [1] | Various | Various | ||||||||
Payment of dividends | [1] | $ (21) | |||||||||
Payment of dividends | [1] | $ 190 | |||||||||
[1] Represents distributions declared on unvested shares, net of forfeitures. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Fox Paine Entities | |||||
Related Party Transaction [Line Items] | |||||
Company's total voting power | 83.90% | 83.90% | |||
Fox Paine and Company | |||||
Related Party Transaction [Line Items] | |||||
Management fees | $ 0.8 | $ 0.7 | $ 1.5 | $ 1.4 | |
Prepaid management fees | $ 0.5 | $ 0.5 | $ 2.1 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2014 |
Commitments and Contingencies [Line Items] | |||
Commitment to purchase alternative investment | $ 50,000 | ||
Future Funding Commitments | $ 14,214 | $ 14,214 | |
Unfunded Commitments | European Non-Performing Loan Fund, LP | |||
Commitments and Contingencies [Line Items] | |||
Funded commitment amount | 35,800 | ||
Future Funding Commitments | $ 14,200 |
Share-Based Compensation Plans
Share-Based Compensation Plans - Additional Information (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 14, 2023 | |
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options awarded | 0 | 0 | 0 | 0 | |
Unvested stock options forfeited | 0 | 0 | 0 | 0 | |
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares forfeited | 0 | 0 | |||
Restricted Stock | Key Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted | 0 | 0 | |||
Restricted Stock | Non Employee Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted | 22,279 | 25,760 | 48,705 | 50,570 | |
Shares vested | 157,139 | ||||
Weighted average grant date value of shares granted | $ 30.2 | $ 25.96 | $ 27.63 | $ 25.8 | |
Vesting date | Jan. 13, 2023 | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares forfeited | 0 | 0 | |||
Shares vested | 49,628 | 35,442 | 75,541 | 61,522 | |
Restricted Stock Units | Key Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted | 0 | 0 | |||
2023 Share Incentive Plan | Class A Common Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorised to issue under share incentive plan | 2,500,000 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Numerator: | |||||
Net income (loss) | $ 9,337 | $ (12,162) | $ 11,831 | $ (26,935) | |
Less: preferred stock distributions | 110 | 110 | 220 | 220 | |
Net income (loss) available to common shareholders | $ 9,227 | $ (12,272) | $ 11,611 | $ (27,155) | |
Denominator: | |||||
Weighted average shares for basic earnings per share | 13,478,014 | 14,543,234 | 13,573,841 | 14,529,170 | |
Weighted average shares for diluted earnings per share | [1] | 13,707,984 | 14,543,234 | 13,794,221 | 14,529,170 |
Basic | [2] | $ 0.68 | $ (0.84) | $ 0.86 | $ (1.87) |
Diluted | [2] | $ 0.67 | $ (0.84) | $ 0.84 | $ (1.87) |
Restricted Stock Units | |||||
Denominator: | |||||
Non-vested restricted stock, units and options | 61,579 | 0 | 58,571 | 0 | |
Stock Options | |||||
Denominator: | |||||
Non-vested restricted stock, units and options | 168,391 | 0 | 161,809 | 0 | |
[1] For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period. For the quarter and six months ended June 30, 2022 , “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period. |
Earning Per Share - Additional
Earning Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Incremental shares included in calculation of diluted EPS | 14,749,370 | 14,728,182 | ||
Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from calculation of diluted earnings per share | 346,667 | 393,333 | 346,667 | 393,333 |
Restricted Stock Units Diluted | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Non-vested restricted stock, units and options | 110,417 | 103,670 | ||
Stock Options Diluted | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Non-vested restricted stock, units and options | 95,719 | 95,342 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Summary of Business Segment Inf
Summary of Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | ||
Revenues: | ||||||
Gross written premiums | $ 110,100 | $ 196,823 | $ 233,085 | $ 387,806 | ||
Net written premiums | 105,996 | 167,158 | 221,857 | 326,640 | ||
Net earned premiums | 129,156 | 155,749 | 269,228 | 304,572 | ||
Other income (loss) | 301 | 84 | 636 | 523 | ||
Total revenues | 129,457 | 155,833 | 269,864 | 305,095 | ||
Losses and Expenses: | ||||||
Net losses and loss adjustment expenses | 78,082 | 92,618 | 166,083 | 177,313 | ||
Acquisition costs and other underwriting expenses | 47,101 | 61,098 | 100,579 | 117,790 | ||
Income (loss) from segments | 4,274 | 2,117 | 3,202 | 9,992 | ||
Unallocated Items: | ||||||
Net investment income | 13,216 | 1,930 | 25,224 | 8,522 | ||
Net realized investment losses | (761) | (9,916) | (2,281) | (35,301) | ||
Other income (loss) | (19) | 13 | ||||
Corporate and other operating expenses | (4,990) | (2,993) | (11,358) | (7,653) | ||
Interest expense | (12) | (410) | (12) | (3,005) | ||
Loss on extinguishment of debt | 0 | (3,529) | 0 | (3,529) | ||
Income (loss) before income taxes | 11,708 | (12,788) | 14,775 | (30,974) | ||
Income tax benefit (expense) | (2,371) | 626 | (2,944) | 4,039 | ||
Net income (loss) | 9,337 | (12,162) | 11,831 | (26,935) | ||
Total assets | 1,774,002 | 1,861,779 | 1,774,002 | 1,861,779 | $ 1,800,775 | |
Segment Assets | ||||||
Unallocated Items: | ||||||
Total assets | 1,604,802 | 1,713,915 | 1,604,802 | 1,713,915 | ||
Corporate Assets | ||||||
Unallocated Items: | ||||||
Total assets | 169,200 | 147,864 | 169,200 | 147,864 | ||
Commercial Specialty | ||||||
Revenues: | ||||||
Gross written premiums | 95,347 | 105,010 | 190,855 | 207,858 | ||
Net written premiums | 91,896 | 99,667 | 183,130 | 197,830 | ||
Net earned premiums | 93,408 | 93,997 | 186,590 | 185,194 | ||
Other income (loss) | 266 | 260 | 533 | 519 | ||
Total revenues | 93,674 | 94,257 | 187,123 | 185,713 | ||
Losses and Expenses: | ||||||
Net losses and loss adjustment expenses | 58,662 | 52,804 | 118,781 | 106,463 | ||
Acquisition costs and other underwriting expenses | 33,972 | 35,543 | 69,498 | 69,069 | ||
Income (loss) from segments | 1,040 | 5,910 | (1,156) | 10,181 | ||
Unallocated Items: | ||||||
Total assets | 999,271 | 1,002,120 | 999,271 | 1,002,120 | ||
Reinsurance Operations | ||||||
Revenues: | ||||||
Gross written premiums | [1] | 14,844 | 46,524 | 38,260 | 87,520 | |
Net written premiums | [1] | 14,844 | 46,524 | 38,260 | 87,520 | |
Net earned premiums | [1] | 29,585 | 39,162 | 64,432 | 73,460 | |
Other income (loss) | [1] | 9 | 20 | 0 | 0 | |
Total revenues | [1] | 29,594 | 39,182 | 64,432 | 73,460 | |
Losses and Expenses: | ||||||
Net losses and loss adjustment expenses | [1] | 19,512 | 22,793 | 40,775 | 43,852 | |
Acquisition costs and other underwriting expenses | [1] | 10,737 | 14,553 | 23,553 | 26,514 | |
Income (loss) from segments | [1] | (655) | 1,836 | 104 | 3,094 | |
Unallocated Items: | ||||||
Total assets | [1] | 383,040 | 326,804 | 383,040 | 326,804 | |
Exited Lines | ||||||
Revenues: | ||||||
Gross written premiums | (91) | 45,289 | 3,970 | 92,428 | ||
Net written premiums | (744) | 20,967 | 467 | 41,290 | ||
Net earned premiums | 6,163 | 22,590 | 18,206 | 45,918 | ||
Other income (loss) | 26 | (196) | 103 | 4 | ||
Total revenues | 6,189 | 22,394 | 18,309 | 45,922 | ||
Losses and Expenses: | ||||||
Net losses and loss adjustment expenses | (92) | 17,021 | 6,527 | 26,998 | ||
Acquisition costs and other underwriting expenses | 2,392 | 11,002 | 7,528 | 22,207 | ||
Income (loss) from segments | 3,889 | (5,629) | 4,254 | (3,283) | ||
Unallocated Items: | ||||||
Total assets | $ 222,491 | $ 384,991 | $ 222,491 | $ 384,991 | ||
[1] External business only, excluding business assumed from affiliates. |