Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 01, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GBLI | ||
Entity Registrant Name | Global Indemnity Ltd | ||
Entity Central Index Key | 1,494,904 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 251,860,903 | ||
Ordinary Shares A | |||
Document Information [Line Items] | |||
Entity Ordinary Shares, Shares Outstanding | 13,436,548 | ||
Ordinary Shares B | |||
Document Information [Line Items] | |||
Entity Ordinary Shares, Shares Outstanding | 4,133,366 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fixed maturities: | ||
Available for sale, at fair value (amortized cost: $1,241,339 and $1,308,333) | $ 1,240,031 | $ 1,306,149 |
Equity securities: | ||
Available for sale, at fair value (cost: $119,515 and $100,157) | 120,557 | 110,315 |
Other invested assets | 66,121 | 32,592 |
Total investments | 1,426,709 | 1,449,056 |
Cash and cash equivalents | 75,110 | 67,037 |
Premiums receivable, net | 92,094 | 89,245 |
Reinsurance receivables, net | 143,774 | 115,594 |
Funds held by ceding insurers | 13,114 | 16,037 |
Federal income taxes receivable | 4,828 | |
Deferred federal income taxes | 40,957 | 34,687 |
Deferred acquisition costs | 57,901 | 56,517 |
Intangible assets | 23,079 | 23,607 |
Goodwill | 6,521 | 6,521 |
Prepaid reinsurance premiums | 42,583 | 44,363 |
Receivable for securities sold | 172 | |
Other assets | 51,104 | 49,630 |
Total assets | 1,972,946 | 1,957,294 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 651,042 | 680,047 |
Unearned premiums | 286,984 | 286,285 |
Federal income taxes payable | 219 | |
Ceded balances payable | 14,675 | 4,589 |
Payable for securities purchased | 3,717 | |
Contingent commissions | 9,454 | 11,069 |
Debt | 163,143 | 172,034 |
Other liabilities | 45,761 | 53,344 |
Total liabilities | 1,174,995 | 1,207,368 |
Commitments and contingencies (Note 15) | ||
Shareholders' equity: | ||
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued: 13,436,548 and 16,424,546, respectively; A ordinary shares outstanding: 13,436,548 and 13,313,751, respectively; B ordinary shares issued and outstanding: 4,133,366 and 4,133,366, respectively | 2 | 3 |
Additional paid-in capital | 430,283 | 529,872 |
Accumulated other comprehensive income, net of taxes | (618) | 4,078 |
Retained earnings | 368,284 | 318,416 |
Total shareholders' equity | 797,951 | 749,926 |
Total liabilities and shareholders' equity | 1,972,946 | 1,957,294 |
Ordinary Shares A | ||
Shareholders' equity: | ||
A ordinary shares in treasury, at cost: 0 and 3,110,795 shares, respectively | (102,443) | |
Total shareholders' equity | $ 1 | $ 2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available for sale, amortized cost | $ 1,241,339 | $ 1,308,333 |
Available for sale, at cost | $ 119,515 | $ 100,157 |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 900,000,000 | 900,000,000 |
Ordinary Shares A | ||
Ordinary shares, shares issued | 13,436,548 | 16,424,546 |
Ordinary shares, shares outstanding | 13,436,548 | 13,313,751 |
Treasury shares, cost | 0 | 3,110,795 |
Ordinary Shares B | ||
Ordinary shares, shares issued | 4,133,366 | 4,133,366 |
Ordinary shares, shares outstanding | 4,133,366 | 4,133,366 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||||||||||
Gross premiums written | $ 565,845 | $ 590,233 | $ 291,253 | ||||||||
Net premiums written | 470,940 | 501,244 | 273,181 | ||||||||
Net premiums earned | $ 109,472 | $ 119,553 | $ 117,804 | $ 121,636 | $ 123,222 | $ 124,707 | $ 128,877 | $ 127,337 | 468,465 | 504,143 | 268,519 |
Net investment income | 8,880 | 8,795 | 6,562 | 9,746 | 8,375 | 8,852 | 9,141 | 8,241 | 33,983 | 34,609 | 28,821 |
Net realized investment gains (losses): | |||||||||||
Other than temporary impairment losses on investments | (6,733) | (7,335) | (501) | ||||||||
Other net realized investment gains | 28,454 | 3,961 | 36,361 | ||||||||
Total net realized investment gains (losses) | 30,778 | 1,928 | (3,492) | (7,493) | 3,842 | (10,778) | 6,532 | (2,970) | 21,721 | (3,374) | 35,860 |
Other income | 10,345 | 3,400 | 555 | ||||||||
Total revenues | 534,514 | 538,778 | 333,755 | ||||||||
Losses and Expenses: | |||||||||||
Net losses and loss adjustment expenses | 48,946 | 72,162 | 78,111 | 64,784 | 48,498 | 77,691 | 79,560 | 69,619 | 264,003 | 275,368 | 137,561 |
Acquisition costs and other underwriting expenses | 47,889 | 48,129 | 48,542 | 52,090 | 51,185 | 50,934 | 50,926 | 48,258 | 196,650 | 201,303 | 109,619 |
Corporate and other operating expenses | 17,338 | 24,448 | 14,559 | ||||||||
Interest expense | 8,905 | 4,913 | 822 | ||||||||
Income before income taxes | 46,535 | 10,598 | (11,468) | 1,953 | 29,463 | (9,727) | 9,772 | 3,238 | 47,618 | 32,746 | 71,194 |
Income tax expense (benefit) | (2,250) | (8,723) | 8,338 | ||||||||
Net income | $ 38,373 | $ 9,535 | $ (5,165) | $ 7,125 | $ 27,304 | $ (3,746) | $ 11,117 | $ 6,794 | $ 49,868 | $ 41,469 | $ 62,856 |
Net income | |||||||||||
Basic | $ 2.89 | $ 1.71 | $ 2.50 | ||||||||
Diluted | $ 2.18 | $ 0.54 | $ (0.30) | $ 0.41 | $ 1.30 | $ (0.15) | $ 0.43 | $ 0.26 | $ 2.84 | $ 1.69 | $ 2.48 |
Weighted-average number of shares outstanding | |||||||||||
Basic | 17,246,717 | 24,253,657 | 25,131,811 | ||||||||
Diluted | 17,547,061 | 24,505,851 | 25,331,420 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 49,868 | $ 41,469 | $ 62,856 |
Other comprehensive income (loss), net of tax: | |||
Unrealized holding gains (losses) | 10,058 | (17,457) | 6,878 |
Portion of other than temporary impairment losses recognized in other comprehensive income (loss) | (3) | (4) | (4) |
Reclassification adjustment for gains included in net income | (14,809) | (1,985) | (37,177) |
Unrealized foreign currency translation gains (losses) | 58 | 140 | (341) |
Other comprehensive income (loss), net of tax | (4,696) | (19,306) | (30,644) |
Comprehensive income, net of tax | $ 45,172 | $ 22,163 | $ 32,212 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital | Accumulated other comprehensive income, net of deferred income tax | Retained Earnings | Treasury Shares | Ordinary Shares A | Ordinary Shares ATreasury Shares | Ordinary Shares B |
Number at Dec. 31, 2013 | 3,059,371 | 16,200,406 | 12,061,370 | |||||
Ordinary shares issued under share incentive plans | 94,563 | |||||||
A ordinary shares purchased | 5,444 | |||||||
Ordinary shares issued to directors | 36,608 | |||||||
Number at Dec. 31, 2014 | 3,064,815 | 16,331,577 | 12,061,370 | |||||
Balance at Dec. 31, 2013 | $ 516,653 | $ 54,028 | $ 403,861 | $ (101,265) | $ 2 | $ 1 | ||
A ordinary shares purchased, at cost | $ (139) | |||||||
Other comprehensive income (loss): | ||||||||
Change in unrealized holding losses | (30,299) | |||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | (4) | |||||||
Unrealized foreign currency translation gains (losses) | $ (341) | (341) | ||||||
Other comprehensive income (loss), net of tax | (30,644) | (30,644) | ||||||
Net income | 62,856 | 62,856 | ||||||
Share compensation plans | 2,900 | |||||||
Tax benefit on share-based compensation expense | 40 | 37 | ||||||
Balance at Dec. 31, 2014 | $ 908,290 | 519,590 | 23,384 | 466,717 | $ (101,404) | $ 2 | $ 1 | |
Ordinary shares issued under share incentive plans | 121,812 | |||||||
A ordinary shares purchased | 11,895 | |||||||
Ordinary shares issued to directors | 36,321 | |||||||
Elimination of shares indirectly owned by subsidiary | 34,085 | |||||||
B ordinary shares converted to A ordinary shares | 7,928,004 | (7,928,004) | ||||||
Ordinary shares redeemed | (4,555,061) | (8,260,870) | ||||||
Ordinary shares issued in connection with American Reliable acquisition | 267,702 | |||||||
Number at Dec. 31, 2015 | 3,110,795 | 16,424,546 | 4,133,366 | |||||
A ordinary shares purchased, at cost | $ (333) | |||||||
Other comprehensive income (loss): | ||||||||
Change in unrealized holding losses | (19,436) | |||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | (10) | |||||||
Unrealized foreign currency translation gains (losses) | $ 140 | 140 | ||||||
Other comprehensive income (loss), net of tax | (19,306) | (19,306) | ||||||
Ordinary shares redeemed | (189,770) | |||||||
Elimination of shares indirectly owned by subsidiary | $ (706) | |||||||
Net income | 41,469 | 41,469 | ||||||
Share compensation plans | 10,272 | |||||||
Tax benefit on share-based compensation expense | 50 | 10 | ||||||
Balance at Dec. 31, 2015 | 749,926 | 529,872 | 4,078 | 318,416 | $ (102,443) | $ 2 | $ 1 | |
Ordinary shares issued under share incentive plans | 115,711 | |||||||
A ordinary shares purchased | 28,099 | |||||||
Ordinary shares issued to directors | 35,185 | |||||||
Reduction in treasury shares due to redomestication | (3,138,894) | (3,138,894) | ||||||
Number at Dec. 31, 2016 | 13,436,548 | 4,133,366 | ||||||
A ordinary shares purchased, at cost | $ (805) | |||||||
Other comprehensive income (loss): | ||||||||
Change in unrealized holding losses | (4,751) | |||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | (3) | |||||||
Unrealized foreign currency translation gains (losses) | 58 | 58 | ||||||
Other comprehensive income (loss), net of tax | (4,696) | (4,696) | ||||||
Net income | 49,868 | 49,868 | ||||||
Reduction in treasury shares due to redomestication | (103,248) | $ 103,248 | $ (1) | |||||
Share compensation plans | 3,532 | |||||||
Tax benefit on share-based compensation expense | 100 | 127 | ||||||
Balance at Dec. 31, 2016 | $ 797,951 | $ 430,283 | $ (618) | $ 368,284 | $ 1 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 49,868 | $ 41,469 | $ 62,856 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Amortization of the value of business acquired | 0 | 25,500 | 0 |
Amortization and depreciation | 6,312 | 5,284 | 3,466 |
Amortization of debt issuance costs | 123 | 47 | |
Restricted stock and stock option expense | 3,531 | 10,271 | 2,900 |
Deferred federal income taxes | (2,727) | (7,201) | (828) |
Amortization of bond premium and discount, net | 9,828 | 13,643 | 9,103 |
Net realized investment (gains) losses | (21,721) | 3,374 | (35,860) |
Equity in the earnings of equity method limited liability investments | (5,190) | (2,533) | 0 |
Gain on the disposition of subsidiary | (6,857) | ||
Changes in: | |||
Premiums receivable, net | (2,849) | 25,325 | (6,698) |
Reinsurance receivables, net | (28,180) | 23,966 | 72,169 |
Funds held by ceding insurers | 2,923 | 9,147 | (6,514) |
Unpaid losses and loss adjustment expenses | (29,005) | (84,914) | (103,994) |
Unearned premiums | 699 | (6,764) | 4,186 |
Ceded balances payable | 10,086 | (11,430) | (2,377) |
Other assets and liabilities, net | (15,065) | (6,070) | (3,398) |
Contingent commissions | (1,615) | (6,264) | 308 |
Federal income tax receivable/payable | 5,047 | (1,689) | (4,734) |
Deferred acquisition costs, net | (1,384) | (31,279) | (3,061) |
Prepaid reinsurance premiums | 1,780 | 3,868 | 474 |
Net cash provided by (used for) operating activities | (24,396) | 3,750 | (12,002) |
Cash flows from investing activities: | |||
Cash release from escrow for business acquisition | 113,696 | ||
Acquisition of business, net of cash acquired | (92,336) | ||
Proceeds from sale of fixed maturities | 381,389 | 647,404 | 415,739 |
Proceeds from sale of equity securities | 111,156 | 39,723 | 191,765 |
Proceeds from sale of preferred stock | 1,540 | ||
Proceeds from maturity of fixed maturities | 86,009 | 157,845 | 108,556 |
Proceeds from limited partnership distribution | 9,450 | 5,959 | |
Proceeds from sale of other invested assets | 12 | ||
Proceeds from disposition of subsidiary, net of cash and cash equivalents disposed of $1,269 | 16,922 | ||
Cash deposited in escrow for purchase of American Reliable | (113,696) | ||
Amount paid in connection with derivatives | (1,010) | (6,604) | (20,550) |
Purchases of fixed maturities | (437,690) | (627,983) | (615,867) |
Purchases of equity securities | (109,940) | (38,451) | (45,077) |
Purchases of other invested assets | (14,125) | (3,550) | (30,120) |
Net cash provided by (used for) investing activities | 42,161 | 197,243 | (109,238) |
Cash flows from financing activities: | |||
Net borrowings (repayments) under margin borrowing facilities | (9,000) | (99,027) | 74,673 |
Redemption of ordinary shares | (189,770) | ||
Proceeds from issuance of subordinated notes | 100,000 | ||
Debt issuance cost | (14) | (3,659) | |
Purchases of A ordinary shares | (805) | (333) | (139) |
Tax benefit on share-based compensation expense | 127 | 10 | 37 |
Net cash provided by (used for) financing activities | (9,692) | (192,779) | 74,571 |
Net change in cash and cash equivalents | 8,073 | 8,214 | (46,669) |
Cash and cash equivalents at beginning of period | 67,037 | 58,823 | 105,492 |
Cash and cash equivalents at end of period | $ 75,110 | $ 67,037 | $ 58,823 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Proceeds from disposition of subsidiary, cash disposed | $ 1,269 |
Principles of Consolidation and
Principles of Consolidation and Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Principles of Consolidation and Basis of Presentation | 1. Principles of Consolidation and Basis of Presentation Global Indemnity Limited (“Global Indemnity” or “the Company”) was incorporated on February 9, 2016 and is domiciled in the Cayman Islands. On November 7, 2016, Global Indemnity replaced Global Indemnity plc as the ultimate parent company as a result of a redomestication transaction. The Company’s A ordinary shares are publicly traded on the NASDAQ Global Select Market under the ticker symbol GBLI. See Note 2 below for details regarding the redomestication. In connection with the redomestication, Global Indemnity plc was converted to a private unlimited company and was placed into liquidation on November 7, 2016. Starting in the 1 st quarter of 2015, the Company manages its business through three business segments: Commercial Lines, Personal Lines, and Reinsurance Operations. The Company’s Commercial Lines, managed in Bala Cynwyd, Pennsylvania, offers specialty property and casualty insurance products in the excess and surplus lines marketplace. The Company manages its Commercial Lines by differentiating them into three product classifications: Penn-America, which markets property and general liability products to small commercial businesses through a select network of wholesale general agents with specific binding authority; United National, which markets insurance products for targeted insured segments, including specialty products, such as property, general liability, and professional lines through program administrators with specific binding authority; and Diamond State, which markets property, casualty, and professional lines products, which are developed by the Company’s underwriting department by individuals with expertise in those lines of business, through wholesale brokers and also markets through program administrators having specific binding authority. These product classifications comprise the Company’s Commercial Lines business segment and are not considered individual business segments because each product has similar economic characteristics, distribution, and coverage. The Company’s Personal Lines segment, via the American Reliable product classification, offers specialty personal lines and agricultural coverage through general and specialty agents with specific binding authority on an admitted basis and is managed in Scottsdale, AZ. Collectively, the Company’s U.S. insurance subsidiaries are licensed in all 50 states and the District of Columbia. The Company’s Reinsurance Operations consist solely of the operations of its Bermuda-based wholly-owned subsidiary, Global Indemnity Reinsurance. Global Indemnity Reinsurance is a treaty reinsurer of specialty property and casualty insurance and reinsurance companies. The Company’s Reinsurance Operations segment provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. On September 30, 2016, Diamond State Insurance Company sold all the outstanding shares of capital stock of one of its wholly owned subsidiaries, United National Specialty Insurance Company, to an unrelated party. Diamond State Insurance Company received a one-time payment of $18.7 million and recognized a pretax gain of $6.9 million which is reflected in other income. This transaction will not have an impact on the Company’s ongoing business operations. Going forward, any business previously written by United National Specialty Insurance Company has been and will be written by other companies within the Company’s U.S. Insurance Operations. The consolidated financial statements 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 consolidated financial statements include the accounts of Global Indemnity and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Redomestication
Redomestication | 12 Months Ended |
Dec. 31, 2016 | |
Redomestication | 2. Redomestication On June 20, 2016, the Company’s Board of Directors unanimously approved a plan for the Company to redomicile from Ireland to the Cayman Islands. On September 14, 2016, the Company held a special meeting of the holders of its A ordinary shares and B ordinary shares and an extraordinary general meeting of its shareholders. All resolutions required to effectuate the redomestication were approved by the requisite shareholder vote. On October 21, 2016, the High Court of Ireland sanctioned Global Indemnity plc’s scheme of arrangement related to the redomestication from Ireland to Cayman Islands. The redomestication transaction was completed on November 7, 2016 and as a result, Global Indemnity Limited, a Cayman Islands exempted company, replaced Global Indemnity plc as the ultimate holding company of the Global Indemnity group of companies. In connection with the redomestication to the Cayman Islands, each A ordinary share of Global Indemnity plc was cancelled and replaced with one A ordinary share of Global Indemnity Limited and each B ordinary share of Global Indemnity plc was cancelled and replaced with one B ordinary share of Global Indemnity Limited. The Global Indemnity Limited A ordinary shares trade on the NASDAQ Global Select Market (“NASDAQ”) under the ticker symbol GBLI, the same symbol under which Global Indemnity plc’s A ordinary shares were previously listed. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies Investments The Company’s investments in fixed maturities and equity securities are classified as available for sale and are carried at their fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of the Company’s available for sale portfolio, excluding interests in limited liability companies and limited partnerships, are determined on the basis of quoted market prices where available. If quoted market prices are not available, the Company uses third party pricing services to assist in determining fair value. In many instances, these services examine the pricing of similar instruments to estimate fair value. The Company purchases bonds with the expectation of holding them to their maturity; however, changes to the portfolio are sometimes required to assure it is appropriately matched to liabilities. In addition, changes in financial market conditions and tax considerations may cause the Company to sell an investment before it matures. The difference between amortized cost and fair value of the Company’s available for sale investments, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders’ equity and, accordingly, has no effect on net income other than for the credit loss component of impairments deemed to be other than temporary. For investments in limited liability companies and limited partnerships where the ownership interest is less than 3%, the Company carries these investments at fair value, and the change in the difference between cost and the fair value of the partnership interests, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders’ equity and, accordingly, has no effect on net income other than for impairments deemed to be other than temporary. The Company uses the equity method to account for an investments in limited liability companies and limited partnerships where its ownership interest exceeds 3%. The equity method of accounting for an investment in a limited liability company or limited partnership requires that its cost basis be updated to account for the income or loss earned on the investment. The income or loss associated with the limited liability companies or limited partnerships is reflected in the consolidated statements of operations, and the adjusted cost basis approximates fair value. The Company’s investments in other invested assets were valued at $66.1 million and $32.6 million as of December 31, 2016 and 2015, respectively. These amounts relate to investments in limited liability companies and limited partnerships. The Company does not have access to daily valuations, therefore; the estimated fair value of the limited liability companies and limited partnerships are based on net asset value as a practical expedient for the limited liability companies and limited partnerships. Net realized gains and losses on investments are determined based on the first-in, first-out method. The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each fixed maturity security in an unrealized loss position to assess whether the security has a credit loss. Specifically, the Company considers credit rating, market price, and issuer specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities for which the Company determines that a credit loss is likely are subjected to further analysis through discounted cash flow testing to estimate the credit loss to be recognized in earnings, if any. The specific methodologies and significant assumptions used by asset class are discussed below. Upon identification of such securities and periodically thereafter, a detailed review is performed to determine whether the decline is considered other than temporary. This review includes an analysis of several factors, including but not limited to, the credit ratings and cash flows of the securities and the magnitude and length of time that the fair value of such securities is below cost. For fixed maturities, the factors considered in reaching the conclusion that a decline below cost is other than temporary include, among others, whether: (1) the issuer is in financial distress; (2) the investment is secured; (3) a significant credit rating action occurred; (4) scheduled interest payments were delayed or missed; (5) changes in laws or regulations have affected an issuer or industry; (6) 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; and (7) the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized. 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 the Company must recognize an other than temporary impairment with the entire unrealized loss being recorded through earnings. For debt securities in an unrealized loss position not meeting these conditions, the Company assesses whether the impairment of a security is other than temporary. If the impairment is deemed to be other than temporary, the Company must separate the other than temporary impairment into two components: the amount representing the credit loss and the amount related to all other factors, such as changes in interest rates. The credit loss represents the portion of the amortized book value in excess of the net present value of the projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. The credit loss component of the other than temporary impairment is recorded through earnings, whereas the amount relating to factors other than credit losses is recorded in other comprehensive income, net of taxes. For equity securities, management carefully reviews all securities with unrealized losses to determine if a security should be impaired and further focuses on securities that have either: (1) persisted with unrealized losses for more than twelve consecutive months or (2) the value of the investment has been 20% or more below cost for six continuous months or more. The amount of any write-down, including those that are deemed to be other than temporary, is included in earnings as a realized loss in the period in which the impairment arose. For an analysis of other than temporary losses that were recorded for the years ended December 31, 2016, 2015, and 2014, please see Note 5 below. 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 interests in two VIEs 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. Cash and Cash Equivalents For the purpose of the statements of cash flows, the Company considers all liquid instruments with an original maturity of three months or less to be cash equivalents. The Company has a cash management program that provides for the investment of excess cash balances primarily in short-term money market instruments. Generally, bank balances exceed federally insured limits. The carrying amount of cash and cash equivalents approximates fair value. At December 31, 2016, the Company had approximately $52.0 million of cash and cash equivalents that was invested in a diversified portfolio of high quality short-term debt securities. Valuation of Premium Receivable The Company evaluates the collectability of premium receivable based on a combination of factors. In instances in which the Company is aware of a specific circumstance where a party may be unable to meet its financial obligations to the Company, a specific allowance for bad debts against amounts due is recorded to reduce the net receivable to the amount reasonably believed by management to be collectible. For all remaining balances, allowances are recognized for bad debts based on the length of time the receivables are past due. The allowance for bad debts was $1.9 million and $1.6 million as of December 31, 2016 and 2015, respectively. Goodwill and Intangible Assets The Company tests for impairment of goodwill at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of goodwill for impairment using both qualitative and quantitative factors. Impairment of goodwill is recognized only if the carrying amount of the reporting unit, including goodwill, exceeds the fair value of the reporting unit. The amount of the impairment loss would be equal to the excess carrying value of the goodwill over the implied fair value of the reporting unit goodwill. Based on the qualitative assessment performed, there was no impairment of goodwill as of December 31, 2016. Impairment of intangible assets with an indefinite useful life is tested at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of indefinite lived intangible assets for impairment using both qualitative and quantitative factors. Impairment of indefinite lived intangible assets is recognized only if the carrying amount of the intangible assets exceeds the fair value of said assets. The amount of the impairment loss would be equal to the excess carrying value of the assets over the fair value of said assets. Based on the qualitative assessment performed, there were no impairments of indefinite lived intangible assets as of December 31, 2016. Intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated useful lives. The carrying amounts of definite lived intangible assets are regularly reviewed for indicators of impairment in accordance with applicable accounting guidance. Impairment is recognized only if the carrying amount of the intangible asset is in excess of its undiscounted projected cash flows. The impairment is measured as the difference between the carrying amount and the estimated fair value of the asset. As of December 31, 2016, there were no triggering events that occurred during the year that would result in an impairment of definite lived intangible assets. See Note 8 for additional information on goodwill and intangible assets. Reinsurance In the normal course of business, the Company seeks to reduce the loss that may arise from events that cause unfavorable underwriting results by reinsuring certain levels of risk from various areas of exposure with reinsurers. Amounts receivable from reinsurers are estimated in a manner consistent with the reinsured policy and the reinsurance contract. The Company regularly reviews the collectability of reinsurance receivables. An allowance for uncollectible reinsurance receivable is recognized based on the financial strength of the reinsurers and the length of time any balances are past due. Any changes in the allowance resulting from this review are included in net losses and loss adjustment expenses on the consolidated statements of operations during the period in which the determination is made. The allowance for uncollectible reinsurance was $8.0 million and $9.7 million as of December 31, 2016 and 2015, respectively. The applicable accounting guidance requires that the reinsurer must assume significant insurance risk under the reinsured portions of the underlying insurance contracts and that there must be a reasonably possible chance that the reinsurer may realize a significant loss from the transaction. The Company has evaluated its reinsurance contracts and concluded that each contract qualifies for reinsurance accounting treatment pursuant to this guidance. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. The deferred tax asset balance is analyzed regularly by management. This assessment requires significant judgment and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of carryforward periods, and tax planning strategies and/or actions. Management believes that it is more likely than not that the results of future operations can generate sufficient taxable income to realize the remaining deferred income tax assets, and accordingly, the Company has not established any valuation allowances. Deferred Acquisition Costs The costs of acquiring new and renewal insurance and reinsurance contracts include commissions, premium taxes and certain other costs that are directly related to the successful acquisition of new and renewal insurance and reinsurance contracts. The excess of the Company’s costs of acquiring new and renewal insurance and reinsurance contracts over the related ceding commissions earned from reinsurers is capitalized as deferred acquisition costs and amortized over the period in which the related premiums are earned. The amortization of deferred acquisition costs for the years ended December 31, 2016, 2015, and 2014 was $114.3 million, $86.2 million, and $57.1 million, respectively. Premium Deficiency A premium deficiency is recognized if the sum of expected loss and loss adjustment expenses and unamortized acquisition costs exceeds related unearned premium after consideration of investment income. This evaluation is done at a product line level in Insurance Operations and at a treaty level in Reinsurance Operations. Any future expected loss on the related unearned premium is recorded first by impairing the unamortized acquisition costs on the related unearned premium followed by an increase to loss and loss adjustment expense reserves on additional expected loss in excess of unamortized acquisition costs. For the years ended December 31, 2016, 2015, and 2014, the total premium deficiency charges were $0.3 million, $0.2 million, and $0.4 million, respectively, comprised solely of reductions to unamortized deferred acquisition costs within the commercial automobile lines in the Commercial Lines Segment. Based on the Company’s analysis, the Company expensed acquisition cost as incurred for the remainder of 2016, 2015 and 2014 for the commercial automobile lines in the Commercial Lines Segment. As the charges were a reduction of unamortized deferred acquisition costs in each respective period, no premium deficiency reserve existed as of December 31, 2016 or 2015. Derivative Instruments The Company uses derivative instruments to manage its exposure to cash flow variability from interest rate risk. The derivative instruments are carried on the balance sheet at fair value and included in other assets and other liabilities. Changes in the fair value of the derivative instruments and the periodic net interest settlements under the derivatives instruments are recognized as net realized investment gains on the consolidated statements of operations. Margin Borrowing Facilities The carrying amounts reported in the balance sheet represent the outstanding borrowings. The outstanding borrowings are due on demand; therefore, the cash receipts and cash payments related to the margin borrowing facilities are shown net in the consolidated statements of cash flows. Subordinated Notes The carrying amounts reported in the balance sheet represent the outstanding balances, net of deferred issuance cost. See Note 12 for details. Unpaid Losses and Loss Adjustment Expenses The liability for unpaid losses and loss adjustment expenses represents the Company’s best estimate of future amounts needed to pay losses and related settlement expenses with respect to events insured by the Company. This liability is based upon the accumulation of individual case estimates for losses reported prior to the close of the accounting period with respect to direct business, estimates received from ceding companies with respect to assumed reinsurance, and estimates of unreported losses. The process of establishing the liability for unpaid losses and loss adjustment is complex, requiring the use of informed actuarially based estimates and management’s judgment. In some cases, significant periods of time, up to several years or more, may elapse between the occurrence of an insured loss and the reporting of that loss to the Company. To establish this liability, the Company regularly reviews and updates the methods of making such estimates and establishing the resulting liabilities. Any resulting adjustments are recorded in consolidated statements of operations during the period in which the determination is made. Retirement of Treasury Stock Upon the formal retirement of treasury stock, the Company offsets the par value of the treasury stock that is being retired against Ordinary Shares and reflects any excess of cost over par value as a deduction from Additional Paid-in Capital. Premiums Premiums are recognized as revenue ratably over the term of the respective policies and treaties. Unearned premiums are computed on a pro rata basis to the day of expiration. Mandatory reinstatement premiums assessed on reinsurance policies are earned in the period of the loss event that gave rise to the reinstatement premiums. Contingent Commissions Certain professional general agencies of the Insurance Operations are paid special incentives, referred to as contingent commissions, when results of business produced by these agencies are more favorable than predetermined thresholds. Similarly, in some circumstances, companies that cede business to the Reinsurance Operations are paid profit commissions based on the profitability of the ceded portfolio. These commissions are charged to other underwriting expenses when incurred. Share-Based Compensation The Company accounts for stock options and other equity based compensation using the modified prospective application of the fair value-based method permitted by the appropriate accounting guidance. See Note 16 for details. Earnings per Share Basic earnings per share have been calculated by dividing net income available to common shareholders by the weighted-average ordinary shares outstanding. Diluted earnings per share has been calculated by dividing net income available to common shareholders by the sum of the weighted-average ordinary shares outstanding and the weighted-average common share equivalents outstanding, which include options and other equity awards. See Note 18 for details. Foreign Currency The Company maintains investments and cash accounts in foreign currencies related to the operations of its business. At period-end, the Company re-measures non-U.S. currency financial assets to their current U.S. dollar equivalent. The resulting gain or loss for foreign denominated investments is reflected in accumulated other comprehensive income in shareholders’ equity; whereas, the gain or loss on foreign denominated cash accounts is reflected in income during the period. Financial liabilities, if any, are generally adjusted within the reserving process. However, for known losses on claims to be paid in foreign currencies, the Company re-measures the liabilities to their current U.S. dollar equivalent each period end with the resulting gain or loss reflected in income during the period. Net transaction gains and losses, primarily comprised of re-measurement of known losses on claims to be paid in foreign currencies, were a loss of $0.7 million for the year ended December 31, 2016 and gains of $0.4 million and $0.5 million for the years ended December 31, 2015 and 2014, respectively. Other Income On September 30, 2016, Diamond State Insurance Company sold all the outstanding shares of capital stock of one of its wholly owned subsidiaries, United National Specialty Insurance Company, to an unrelated party. Diamond State Insurance Company received a one-time payment of $18.7 million and recognized a pretax gain of $6.9 million which is reflected in other income. This transaction will not have an impact on the Company’s ongoing business operations. Going forward, any business previously written by United National Specialty Insurance Company has been and will be written by other companies within the Company’s U.S. Insurance Operations. In addition, other income is comprised of fee income on policies issued, commission income, accrued interest on the anticipated indemnification of unpaid loss and loss adjustment expense reserve, and foreign exchange gains and losses. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2016 | |
Acquisition | 4. Acquisition On January 1, 2015, Global Indemnity Group, Inc., a subsidiary of the Company, acquired 100% of the voting equity interest of American Reliable from American Bankers Insurance Group, Inc. by paying $113.7 million in cash and assuming $283.9 million of customary insurance related liabilities, obligations, and mandates. Per the American Reliable Share Purchase Agreement (“SPA”), the ultimate purchase price is subject to (i) accounting procedures that were performed in 2015 to determine GAAP book value and (ii) indemnification on future development on recorded loss and loss adjustment expenses as of December 31, 2014. In accordance with the SPA, on the third calendar year following the calendar year of the closing, if loss and loss adjustment expenses for accident years 2014 and prior are lower than recorded unpaid loss and loss adjustment expenses as of December 31, 2014, Global Indemnity Group, Inc. will pay the variance to American Bankers Group, Inc. Conversely, if loss and loss adjustment expenses for accident years 2014 and prior exceed recorded unpaid loss and loss adjustment expenses as of December 31, 2014, American Bankers Group, Inc. will pay the variance to Global Indemnity Group, Inc. In accordance with a dispute resolution agreement between Global Indemnity Group, Inc. and American Bankers Group, Inc., any variance paid related to the loss indemnification will be subject to interest of 5% compounded semi-annually. The Company’s purchase price, based on available financial information at the date of acquisition, was $99.8 million. The results of American Reliable’s operations have been included in the Company’s consolidated financial statements since the date of the acquisition on January 1, 2015. The purchase of American Reliable expanded Global Indemnity’s product offerings. American Reliable is a specialty company that distributes personal lines products written on an admitted basis that are unusual and harder to place. It complements Global Indemnity’s existing US Insurance Operations that primarily distribute commercial lines products on an excess and surplus lines basis. American Reliable is domiciled in Arizona and as such is subject to its state insurance department regulations. For the year ended December 31, 2015, American Reliable had total revenues of $259.0 million and pre-tax loss of $4.2 million. These amounts are included in the Company’s results of operations for the year ended December 31, 2015. The following table presents the Company’s unaudited pro forma consolidated results of operations for the years December 31, 2015 and 2014 as if the acquisition had occurred on January 1, 2014 instead of January 1, 2015. Pro Forma Years Ended December 31, (Dollars in thousands except per share data) 2015 2014 Total Revenue $ 538,778 $ 597,583 Net Income (Loss) $ 46,864 $ 63,053 Net Income (Loss) per share (diluted) $ 1.91 $ 2.46 The pro forma results were calculated by applying the Company’s accounting policies and adjusting the result of American Reliable to reflect (i) the impact of intercompany reinsurance with Global Indemnity Reinsurance, (ii) the impact on interest expense resulting from changes to the Company’s capital structure in connection with the acquisition, (iii) the impact on investment income from the acquisition date adjustments to fair value of investments, (iv) the impact on underwriting expenses from the acquisition date adjustments to fair value of deferred acquisition costs and intangible assets, (v) the impact of excluding transaction costs related to the acquisition and (vi) the tax effects of the above adjustments. The pro forma results do not include any anticipated cost synergies or other effects of the integration of American Reliable. Such pro forma amounts are not indicative of the results that actually would have occurred had the acquisition been completed on January 1, 2014, nor are they indicative of the future operating results of the combined company. The Company has finalized its process of valuing the assets acquired and liabilities assumed. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the date of the acquisition. (Dollars in thousands) ASSETS: Investments $ 226,458 Cash and cash equivalents 21,360 Premiums receivables, net 26,102 Accounts receivable 11,311 Reinsurance receivables 13,842 Prepaid reinsurance premiums 43,506 Intangible assets 32,000 Deferred federal income taxes 915 Other assets 6,473 Total assets 381,967 LIABILITIES: Unearned premiums 172,234 Unpaid losses and loss adjustment expenses 89,489 Reinsurance balances payable 13,219 Contingent commissions 3,903 Other liabilities 5,026 Total liabilities 283,871 Estimated fair value of net assets acquired 98,096 Purchase price 99,797 Goodwill $ 1,701 The transaction was accounted for using the purchase method of accounting. The assets and liabilities acquired by the Company were adjusted to estimated fair value. The $1.7 million excess of cash and acquisition cost over the estimated fair value of assets acquired was recognized as goodwill. Under the purchase method of accounting, goodwill is not amortized but is tested for impairment at least annually. Goodwill of $1.7 million, arising from the acquisition, consists largely of the synergies and economies of scales expected from combining the operations of Global Indemnity and American Reliable. The Company has assigned goodwill of $1.7 million to the Personal Lines segment. There is no tax goodwill. An identification and valuation of intangible assets was performed that resulted in the recognition of intangible assets of $32.0 million with values assigned as follows: (Dollars in thousands) Description Useful Life Amount State insurance licenses Indefinite $ 5,000 Value of business acquired < 1 year 25,500 Agent relationships 10 years 900 Trade name 7 years 600 $ 32,000 Intangible assets arising from the acquisition are deductible for income tax purposes over 15 years. The following table presents details of the Company’s intangible assets arising from the American Reliable acquisition as of December 31, 2015: (Dollars in thousands) Description Useful Life Cost Accumulated Net State insurance licenses Indefinite $ 5,000 $ — $ 5,000 Value of business acquired < 1 year 25,500 25,500 0 Agent relationships 10 years 900 90 810 Trade name 7 years 600 86 514 $ 32,000 $ 25,676 $ 6,324 Amortization related to the Company’s definite lived intangible assets resulting from American Reliable acquisition was $25.7 million for the year ended December 31, 2015. As of December 31, 2015, the Company expected that amortization expense for the next five years related to the American Reliable acquisition will be as follows: (Dollars in thousands) 2016 $ 176 2017 176 2018 176 2019 176 2020 176 As of December 31, 2015, the fair value, gross contractual amounts due, and contractual cash flows not expected to be collected of acquired receivables were as follows: (Dollars in thousands) Fair Value Gross Contractual Premium receivables $ 26,102 $ 26,896 $ 794 Accounts receivable 11,311 11,311 — Reinsurance receivables 13,842 13,842 — In connection with the acquisition, the Company agreed to pay to Fox Paine & Company an investment banking fee of 3% of the amount paid plus the additional capital required to operate American Reliable on a standalone basis and a $1.5 million investment advisory fee, which in the aggregate, totaled $6.5 million. This amount was included in corporate and other operating expenses on the Company’s Consolidated Statements of Operations during the year ended December 31, 2015. As payment for these fees, 267,702 A ordinary shares of Global Indemnity were issued under the Global Indemnity plc Share Incentive Plan in May, 2015. These shares were registered but cannot be sold until the earlier of five years or a change of control. See Note 16 for additional information on the Company’s share incentive plan, including the Global Indemnity plc Share Incentive Plan. Additional costs, mainly professional fees, of $5.1 million were incurred in connection with the acquisition of American Reliable. Of this amount, $1.8 million and $3.3 million was recorded as corporate and other operating expenses on the Company’s Consolidated Statements of Operations during the years ended December 31, 2015 and 2014, respectively. During the year ended December 31, 2015, the Company paid approximately $1.6 million in employee compensation related costs, which were related to periods prior to the Acquisition. These costs were accrued by American Reliable and were included in the fair value of net assets acquired by Global Indemnity Group, Inc. on January 1, 2015. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments | 5. Investments The amortized cost and estimated fair value of investments were as follows as of December 31, 2016 and 2015: (Dollars in thousands) Amortized Cost Gross Gross Estimated Other than As of December 31, 2016 Fixed maturities: U.S. treasury and agency obligations $ 71,517 $ 763 $ (233 ) $ 72,047 $ — Obligations of states and political subdivisions 155,402 1,423 (379 ) 156,446 — Mortgage-backed securities 88,131 895 (558 ) 88,468 — Asset-backed securities 233,890 684 (583 ) 233,991 (4 ) Commercial mortgage-backed securities 184,821 118 (1,747 ) 183,192 — Corporate bonds 381,209 1,666 (2,848 ) 380,027 — Foreign corporate bonds 126,369 164 (673 ) 125,860 — Total fixed maturities 1,241,339 5,713 (7,021 ) 1,240,031 (4 ) Common stock 119,515 3,445 (2,403 ) 120,557 — Other invested assets 66,121 — — 66,121 — Total $ 1,426,975 $ 9,158 $ (9,424 ) $ 1,426,709 $ (4 ) (1) Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”). (Dollars in thousands) Amortized Cost Gross Gross Estimated Other than As of December 31, 2015 Fixed maturities: U.S. treasury and agency obligations $ 106,303 $ 1,140 $ (321 ) $ 107,122 $ — Obligations of states and political subdivisions 203,121 2,576 (457 ) 205,240 — Mortgage-backed securities 157,753 2,113 (743 ) 159,123 — Asset-backed securities 261,008 435 (1,421 ) 260,022 (9 ) Commercial mortgage-backed securities 142,742 — (2,352 ) 140,390 — Corporate bonds 334,720 685 (3,294 ) 332,111 — Foreign corporate bonds 102,686 194 (739 ) 102,141 — Total fixed maturities 1,308,333 7,143 (9,327 ) 1,306,149 (9 ) Common stock 100,157 16,118 (5,960 ) 110,315 — Other invested assets 32,592 — — 32,592 — Total $ 1,441,082 $ 23,261 $ (15,287 ) $ 1,449,056 $ (9 ) (1) Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”). Excluding U.S. treasuries and agency bonds, the Company did not hold any debt or equity investments in a single issuer that was in excess of 5% of shareholders’ equity at December 31, 2016 and 2015, respectively. The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at December 31, 2016, 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 Cost Estimated Due in one year or less $ 80,840 $ 80,982 Due in one year through five years 623,678 622,926 Due in five years through ten years 20,356 20,770 Due in ten years through fifteen years 3,245 3,252 Due after fifteen years 6,378 6,450 Mortgage-backed securities 88,131 88,468 Asset-backed securities 233,890 233,991 Commercial mortgage-backed securities 184,821 183,192 Total $ 1,241,339 $ 1,240,031 The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2016: Less than 12 months 12 months or longer (1) Total (Dollars in thousands) Fair Value Gross Fair Value Gross Fair Value Gross Fixed maturities: U.S. treasury and agency obligations $ 39,570 $ (233 ) $ — $ — $ 39,570 $ (233 ) Obligations of states and political subdivisions 46,861 (369 ) 670 (10 ) 47,531 (379 ) Mortgage-backed securities 52,780 (541 ) 298 (17 ) 53,078 (558 ) Asset-backed securities 62,737 (493 ) 23,937 (90 ) 86,674 (583 ) Commercial mortgage-backed securities 94,366 (1,090 ) 69,747 (657 ) 164,113 (1,747 ) Corporate bonds 171,621 (2,731 ) 9,218 (117 ) 180,839 (2,848 ) Foreign corporate bonds 76,036 (673 ) — — 76,036 (673 ) Total fixed maturities 543,971 (6,130 ) 103,870 (891 ) 647,841 (7,021 ) Common stock 57,439 (2,403 ) — — 57,439 (2,403 ) Total $ 601,410 $ (8,533 ) $ 103,870 $ (891 ) $ 705,280 $ (9,424 ) (1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2015: Less than 12 months 12 months or longer (1) Total (Dollars in thousands) Fair Value Gross Fair Gross Fair Value Gross Fixed maturities: U.S. treasury and agency obligations $ 79,496 $ (321 ) $ — $ — $ 79,496 $ (321 ) Obligations of states and political subdivisions 49,708 (373 ) 7,732 (84 ) 57,440 (457 ) Mortgage-backed securities 63,759 (743 ) — — 63,759 (743 ) Asset-backed securities 203,381 (1,404 ) 4,843 (17 ) 208,224 (1,421 ) Commercial mortgage-backed securities 118,813 (2,005 ) 21,577 (347 ) 140,390 (2,352 ) Corporate bonds 211,364 (3,269 ) 2,120 (25 ) 213,484 (3,294 ) Foreign corporate bonds 63,860 (697 ) 5,129 (42 ) 68,989 (739 ) Total fixed maturities 790,381 (8,812 ) 41,401 (515 ) 831,782 (9,327 ) Common stock 36,798 (5,960 ) — — 36,798 (5,960 ) Total $ 827,179 $ (14,772 ) $ 41,401 $ (515 ) $ 868,580 $ (15,287 ) (1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. Subject to the risks and uncertainties in evaluating the potential impairment of a security’s value, the impairment evaluation conducted by the Company as of December 31, 2016 concluded the unrealized losses discussed above are not other than temporary impairments. The impairment evaluation process is discussed in the “Investment” section of Note 3 (“Summary of Significant Accounting Policies”). 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. treasury and agency obligations Obligations of states and political subdivisions Mortgage-backed securities (“MBS”) Asset backed securities (“ABS”) Commercial mortgage-backed securities (“CMBS”) Corporate bonds Foreign bonds Common stock The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the years ended December 31, 2016, 2015, and 2014: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Fixed maturities: OTTI losses, gross $ (259 ) $ (24 ) $ (31 ) Portion of loss recognized in other comprehensive income (pre-tax) — — — Net impairment losses on fixed maturities recognized in earnings (259 ) (24 ) (31 ) Equity securities (6,474 ) (7,311 ) (470 ) Total $ (6,733 ) $ (7,335 ) $ (501 ) The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company as of December 31, 2016, 2015, and 2014 for which a portion of the OTTI loss was recognized in other comprehensive income. Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Balance at beginning of period $ 31 $ 50 $ 54 Additions where no OTTI was previously recorded — — — Additions where an OTTI was previously recorded — — — Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery — — — Reductions reflecting increases in expected cash flows to be collected — — — Reductions for securities sold during the period — (19 ) (4 ) Balance at end of period $ 31 $ 31 $ 50 Accumulated Other Comprehensive Income, Net of Tax Accumulated other comprehensive income, net of tax, as of December 31, 2016 and 2015 was as follows: (Dollars in thousands) December 31, 2016 2015 Net unrealized gains (losses) from: Fixed maturities $ (1,308 ) $ (2,184 ) Common stock 1,042 10,158 Deferred taxes (352 ) (3,896 ) Accumulated other comprehensive income (loss), net of tax $ (618 ) $ 4,078 The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the years ended December 31, 2016 and 2015: Year Ended December 31, 2016 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ 4,200 $ (122 ) $ 4,078 Other comprehensive income (loss) before reclassification 10,374 (261 ) 10,113 Amounts reclassified from accumulated other comprehensive income (loss) (15,128 ) 319 (14,809 ) Other comprehensive income (loss) (4,754 ) 58 (4,696 ) Ending balance $ (554) $ (64 ) $ (618) Year Ended December 31, 2015 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ 23,647 $ (263 ) $ 23,384 Other comprehensive income (loss) before reclassification (17,065 ) (256 ) (17,321 ) Amounts reclassified from accumulated other comprehensive income (loss) (2,382 ) 397 (1,985 ) Other comprehensive income (loss) (19,447 ) 141 (19,306 ) Ending balance $ 4,200 $ (122 ) $ 4,078 The reclassifications out of accumulated other comprehensive income for the years ended December 31, 2016 and 2015 were as follows: Amounts Reclassified from Years Ended December 31, (Dollars in thousands) Details about Accumulated Other Comprehensive Income Components Affected Line Item in the 2016 2015 Unrealized gains and losses on available for sale securities Other net realized investment (gains) $ (30,055 ) $ (11,559 ) Other than temporary impairment losses on investments 6,733 7,335 Total before tax (23,322 ) (4,224 ) Income tax expense 8,194 1,842 Unrealized gains and losses on available for sale securities, net of tax $ (15,128 ) $ (2,382 ) Foreign currency items Other net realized investment losses $ 491 $ 610 Income tax (benefit) (172 ) (213 ) Foreign currency items, net of tax $ 319 $ 397 Total reclassifications Total reclassifications, net of tax $ (14,809 ) $ (1,985 ) Net Realized Investment Gains (Losses) The components of net realized investment gains (losses) for the years ended December 31, 2016, 2015, and 2014 were as follows: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Fixed maturities: Gross realized gains $ 2,947 $ 3,565 $ 2,843 Gross realized losses (691 ) (2,180 ) (703 ) Net realized gains 2,256 1,385 2,140 Common stock: Gross realized gains 28,785 10,379 55,907 Gross realized losses (8,210 ) (8,246 ) (1,351 ) Net realized gains 20,575 2,133 54,556 Preferred stock: Gross realized gains — 96 — Gross realized losses — — — Net realized gains — 96 — Derivatives: Gross realized gains 3,733 — — Gross realized losses (4,843 ) (6,988 ) (20,836 ) Net realized gains (losses) (1) (1,110 ) (6,988 ) (20,836 ) Total net realized investment gains (losses) $ 21,721 $ (3,374 ) $ 35,860 (1) Includes $4.8 million, $5.4 million, and $5.5 million of periodic net interest settlements related to the derivatives for the years ended December 31, 2016, 2015, and 2014, respectively. The proceeds from sales of available for sale securities resulting in net realized investment gains (losses) for the years ended December 31, 2016, 2015, and 2014 were as follows: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Fixed maturities $ 381,389 $ 647,404 $ 415,739 Equity securities 111,156 39,723 191,765 Preferred stock — 1,540 — Net Investment Income The sources of net investment income for the years ended December 31, 2016, 2015, and 2014 were as follows: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Fixed maturities $ 30,337 $ 32,091 $ 26,788 Equity securities 3,302 3,125 5,484 Cash and cash equivalents 217 82 61 Other invested assets 5,295 2,620 87 Total investment income 39,151 37,918 32,420 Investment expense (1) (5,168 ) (3,309 ) (3,599 ) Net investment income $ 33,983 $ 34,609 $ 28,821 (1) Investment expense for the year ended December 31, 2016 includes $1.5 million in upfront fees necessary to enter into a new investment. See Note 9 for additional information on the Company’s $40 million commitment related to this new investment. The Company’s total investment return on a pre-tax basis for the years ended December 31, 2016, 2015, and 2014 were as follows: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Net investment income $ 33,983 $ 34,609 $ 28,821 Net realized investment gains(losses) 21,721 (3,374 ) 35,860 Change in unrealized holding gains and losses (8,240 ) (25,673 ) (45,861 ) Net realized and unrealized investment returns 13,481 (29,047 ) (10,001 ) Total investment return $ 47,464 $ 5,562 $ 18,820 Total investment return % 3.1 % 0.3 % 1.2 % Average investment portfolio $ 1,507,184 $ 1,752,785 $ 1,533,104 Insurance Enhanced Asset-Backed and Credit Securities As of December 31, 2016, the Company held insurance enhanced asset-backed and credit securities with a market value of approximately $27.1 million. Approximately $9.8 million of these securities were tax-free municipal bonds, which represented approximately 0.7% of the Company’s total cash and invested assets, net of payable/ receivable for securities purchased and sold. These securities had an average rating of “A+.” Approximately $5.6 million of these bonds are pre-refunded with U.S. treasury securities, of which $0.4 million are backed by financial guarantors, meaning that funds have been set aside in escrow to satisfy the future interest and principal obligations of the bond. Of the remaining $4.2 million of tax free insurance enhanced municipal bonds, none would have carried a lower credit rating had they not been insured. A summary of the Company’s insurance enhanced municipal bonds that are backed by financial guarantors, including the pre-refunded bonds that are escrowed in U.S. government obligations, as of December 31, 2016, is as follows: (Dollars in thousands) Financial Guarantor Total Pre-refunded Government Exposure Net of Pre-refunded Securities Ambac Financial Group $ 1,494 $ 450 $ $ 1,044 Municipal Bond Insurance Association 2,657 — — 2,657 Gov’t National Housing Association 495 — 495 — Total backed by financial guarantors 4,646 450 495 3,701 Other credit enhanced municipal bonds 5,164 5,164 — — Total $ 9,810 $ 5,614 $ 495 $ 3,701 In addition to the tax-free municipal bonds, the Company held $17.3 million of insurance enhanced bonds that are comprised of $17.2 million of taxable municipal bonds and $0.1 million of asset-backed securities, which represented approximately 1.2% of the Company’s total invested assets, net of receivable/payable for securities purchased and sold. The financial guarantors of the Company’s $17.3 million of insurance enhanced asset-backed and taxable municipal securities include Municipal Bond Insurance Association ($3.0 million) and Assured Guaranty Corporation ($14.3 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 December 31, 2016. Bonds Held on Deposit Certain cash balances, cash equivalents, equity securities, and bonds available for sale were deposited with various governmental authorities in accordance with statutory requirements, were held as collateral pursuant to borrowing arrangements, or were held in trust pursuant to intercompany reinsurance agreements. The fair values were as follows as of December 31, 2016 and 2015: Estimated Fair Value (Dollars in thousands) December 31, December 31, On deposit with governmental authorities $ 29,079 $ 38,815 Intercompany trusts held for the benefit of U.S. policyholders 351,002 375,827 Held in trust pursuant to third party requirements 88,178 66,544 Letter of credit held for third party requirements 4,871 5,598 Securities held as collateral for borrowing arrangements (1) 85,939 95,647 Total $ 559,069 $ 582,431 (1) Amount required to collateralize margin borrowing facilities. 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 interests in two VIEs 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 fair value of one of the Company’s VIEs, which invests in distressed securities and assets, was $32.9 million and $32.6 million as of December 31, 2016 and 2015, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $48.6 million and $52.6 million at December 31, 2016 and 2015, respectively. The Company also invested in a new limited partnership during 2016 that is also considered a VIE. The Company’s investment in this partnership has a fair value of $33.2 million at December 31, 2016. The Company’s maximum exposure to loss from this VIE at December 31, 2016 was $42.3 million. The Company’s investment in VIEs is included in other invested assets on the consolidated balance sheet with changes in fair value recorded in the consolidated statements of operations. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments | 6. Derivative Instruments Interest rate swaps are used by the Company primarily to reduce risks from changes in interest rates. Under the terms of the interest rate swaps, the Company agrees with another party 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 accounts for the interest rate swaps 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 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 summarizes information on the location and the gross amount of the derivatives’ fair value on the consolidated balance sheets as of December 31, 2016 and 2015: (Dollars in thousands) Derivatives Not Designated as Hedging Instruments under ASC 815 Balance Sheet December 31, 2016 December 31, 2015 Notional Fair Notional Fair Interest rate swap agreements Other liabilities $ 200,000 $ (11,524 ) $ 200,000 $ (15,256 ) The following table summarizes the net gains (losses) 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 years ended December 31, 2016, 2015, and 2014: (Dollars in thousands) Consolidated Statements of Years Ended December 31, 2016 2015 2014 Interest rate swap agreements Net realized investment gains (losses) $ (1,110 ) $ (6,988 ) $ (20,836 ) As of December 31, 2016 and 2015, the Company is due $5.3 million and $4.5 million, respectively, for funds it needed to post to execute the swap transaction and $12.6 million and $17.3 million, respectively, for margin calls made in connection with the interest rate swaps. These amounts are included in other assets on the consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements | 7. 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 and derivative instruments 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 and derivative instruments measured at fair value on a recurring basis as of December 31, 2016 and 2015, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. As of December 31, 2016 Fair Value Measurements (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 72,047 $ — $ — $ 72,047 Obligations of states and political subdivisions — 156,446 — 156,446 Mortgage-backed securities — 88,468 — 88,468 Commercial mortgage-backed securities — 183,192 — 183,192 Asset-backed securities — 233,991 — 233,991 Corporate bonds — 380,027 — 380,027 Foreign corporate bonds — 125,860 — 125,860 Total fixed maturities 72,047 1,167,984 — 1,240,031 Common stock 120,557 — — 120,557 Total assets measured at fair value (1) $ 192,604 $ 1,167,984 $ — $ 1,360,588 Liabilities: Derivative instruments $ — $ 11,524 $ — $ 11,524 Total liabilities measured at fair value $ — $ 11,524 $ — $ 11,524 (1) Excluded from the table above are limited partnerships of $66.1 million at December 31, 2016 whose fair value is based on net asset value as a practical expedient. As of December 31, 2015 Fair Value Measurements (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 101,264 $ 5,858 $ — $ 107,122 Obligations of states and political subdivisions — 205,240 — 205,240 Mortgage-backed securities — 159,123 — 159,123 Commercial mortgage-backed securities — 140,390 — 140,390 Asset-backed securities — 260,022 — 260,022 Corporate bonds — 332,111 — 332,111 Foreign corporate bonds — 102,141 — 102,141 Total fixed maturities 101,264 1,204,885 — 1,306,149 Common stock 110,315 — — 110,315 Total assets measured at fair value (1) $ 211,579 $ 1,204,885 $ — $ 1,416,464 Liabilities: Derivative instruments $ — $ 15,256 $ — $ 15,256 Total liabilities measured at fair value $ — $ 15,256 $ — $ 15,256 (1) Excluded from the table above are limited partnerships of $32.6 million at December 31, 2015 whose fair value is based on net asset value as a practical expedient. The securities classified as Level 1 in the above table consist of U.S. Treasuries and equity securities actively traded on an exchange. The securities classified as Level 2 in the above table consist primarily of fixed maturity securities and derivative instruments. 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 estimated fair value of the derivative instruments, consisting of interest rate swaps, is obtained from a third party financial institution that utilizes observable inputs such as the forward interest rate curve. For the Company’s material debt arrangements, the current fair value of the Company’s debt at December 31, 2016 and 2015 was as follows: December 31, 2016 December 31, 2015 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Margin Borrowing Facilities $ 66,646 $ 66,646 $ 75,646 $ 75,646 7.75% Subordinated Notes due 2045 (1) 96,497 95,697 96,388 91,748 Total $ 163,143 $ 162,343 $ 172,034 $ 167,394 (1) As of December 31, 2016 and 2015, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.5 million and $3.6 million, respectively. The fair value of the margin borrowing facilities approximates its carrying value due to the facilities being due on demand. The 7.75% subordinated notes due 2045 are publicly traded instruments and are classified as Level 1 in the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the years ended December 31, 2016, 2015, and 2014. The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the year ended December 31, 2016 and 2015: Years Ended (Dollars in thousands) 2016 2015 Beginning balance $ — $ — Total gains (realized / unrealized): Amortization of bond premium and discount, net 75 — Included in realized gains (losses) 486 — Purchases 27,303 — Sales (27,864 ) — Ending balance $ — $ — The investments classified as Level 3 in the above table consist of privately placed debt instruments purchased in 2016 with unobservable inputs. The Company does not have access to daily valuations; therefore, market trades, performance of the underlying assets, and key risks are considered in order to estimate fair values of these middle market corporate debt instruments. In the fourth quarter of 2016 the Company exchanged the debt instruments purchased in previous quarters of 2016, along with cash and equity related to the debt instruments, for a single interest in the Private Middle Market Loan Fund, LP, which is considered a VIE. As this investment is priced using a Net Asset Value (NAV) it is excluded from the level 3 investment table above. See Note 4 of the notes to the consolidated financial statements in Item 8 of Part II of this report for further information regarding the Company’s investment in VIEs for the years ended December 31, 2016 and 2015. Fair Value of Alternative Investments Other invested assets consist of limited liability partnerships whose fair value is based on net asset value per share practical expedient. The following table provides the fair value and future funding commitments related to these investments at December 31, 2016 and 2015. December 31, 2016 December 31, 2015 (Dollars in thousands) Fair Future Fair Future Real Estate Fund, LP (1) $ — $ — $ — $ — European Non-Performing Loan Fund, LP (2) 32,922 15,714 32,592 20,014 Private Middle Market Loan Fund, LP (3) 33,199 9,054 — — Total $ 66,121 $ 24,768 $ 32,592 $ 20,014 (1) This limited partnership invests in real estate assets through a combination of direct or indirect investments in partnerships, limited liability companies, mortgage loans, and lines of credit. 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. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company continues to hold an investment in this limited partnership and has written the fair value down to zero. (2) 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. Based on the terms of the partnership agreement, the Company anticipates its interest in this partnership to be redeemed by 2020. (3) This limited partnership provides financing for 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. Based on the terms of the investment management agreement, the Company anticipates its interest to be redeemed no later than 2024. 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 a limited liability company and limited partnership requires that its cost basis be updated to account for the income or loss earned on the investment. The investment income associated with these limited liability companies or limited partnerships, which is reflected in the consolidated statements of operations, was $5.2 million, $2.5 million, and $0.0 million for the years ended December 31, 2016, 2015, and 2014, respectively. Pricing The Company’s pricing vendors provide prices for all investment categories except for investments in limited partnerships whose fair value is based on net asset values as a practical expedient. 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: • Common stock prices are received from all primary and secondary exchanges. • Corporate and agency bonds are evaluated by utilizing a multi-dimensional relational model. For bonds with early redemption options, an option adjusted spread model is utilized. Both asset classes use standard inputs and incorporate security set up, defined sector breakdown, benchmark yields, apply base spreads, yield to maturity, and adjust for corporate actions. • Data from commercial vendors is aggregated with market information, then converted into a prepayment/spread/LIBOR curve model used for commercial mortgage obligations (“CMO”). CMOs are categorized with mortgage-backed securities in the tables listed above. For asset-backed securities, data derived from market information along with trustee and servicer reports is converted into spreads to interpolated swap yield curve. For both asset classes, evaluations utilize standard inputs plus new issue data, monthly payment information, and collateral performance. The evaluated pricing models incorporate discount rates, loan level information, prepayment speeds, treasury benchmarks, and LIBOR and swap curves. • For obligations of state and political subdivisions, a multi-dimensional relational model is used to evaluate securities. The pricing models incorporate security set-up, benchmark yields, apply base spreads, yield to worst or market convention, ratings updates, prepayment schedules and adjustments for material events notices. • U.S. treasuries are evaluated by obtaining feeds from a number of live data sources including active market makers and inter-dealer brokers. • For mortgage-backed securities, a matrix model correlation to TBA (a forward MBS trade) or benchmarking is utilized to value a security. 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 2016 and 2015, the Company has not adjusted quotes or prices obtained from the pricing vendors. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets | 8. Goodwill and Intangible Assets Goodwill As a result of acquisitions in 2015 and 2010, the Company has goodwill of $6.5 million as of December 31, 2016 and 2015, which represents the excess purchase price over the Company’s best estimate of the fair value of the assets acquired. Impairment testing performed in 2016 and 2015 did not result in impairment of the goodwill acquired. The changes in the carrying amount of goodwill, by segment, for the years ended December 31, 2016 and 2015 are as follows: (Dollars in thousands) Commercial Personal Lines Total Balance at December 31, 2014 $ 4,820 $ — $ 4,820 Acquisition of American Reliable on January 1, 2015 — 1,701 1,701 Balance at December 31, 2015 and 2016 $ 4,820 $ 1,701 $ 6,521 Intangible assets The following table presents details of the Company’s intangible assets as of December 31, 2016: (Dollars in thousands) Description Useful Life Cost Accumulated Net Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 2,369 2,931 Agent relationships 10 years 900 179 721 Trade names 7 years 600 173 427 $ 25,800 $ 2,721 $ 23,079 The following table presents details of the Company’s intangible assets as of December 31, 2015: (Dollars in thousands) Description Useful Life Cost Accumulated Net Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 2,017 3,283 Agent relationships 10 years 900 90 810 Trade names 7 years 600 86 514 Value of business added (“VOBA”) < 1 year 25,500 25,500 — $ 51,300 $ 27,693 $ 23,607 Amortization related to the Company’s definite lived intangible assets, other than VOBA, was $0.5 million, $0.5 million, and $0.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. Amortization related to VOBA was $25.5 million for the year ended December 31, 2015. The Company did not have any amortization related to VOBA during the years ended December 31, 2016 or 2014. The Company expects that amortization expense for the next five years will be as follows: (Dollars in thousands) 2017 $ 529 2018 529 2019 529 2020 529 2021 529 Intangible assets with indefinite lives As of December 31, 2016 and 2015, indefinite lived intangible assets, which are comprised of tradenames, trademarks, and state insurance licenses, were $19.0 million. The Company reviewed internal business unit results, the growth of competitors and the overall property and casualty insurance market for indicators of impairment of its indefinite lived intangible assets. Impairment testing performed in 2016 and 2015 indicated that there was no impairment of these assets. Intangible assets with definite lives As of December 31, 2016 and 2015, definite lived intangible assets, net of accumulated amortization, were $4.1 million and $4.6 million, respectively, and were comprised of customer relationships, agent relationships, and tradenames. VOBA of $25.5 million, which was related to the American Reliable acquisition, was fully amortized in 2015. The Company reviewed internal business unit results, the growth of competitors and the overall property and casualty insurance market for indicators of impairment of its definite lived intangible assets. There was no impairment of these assets in 2016 or 2015. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance | 9. Reinsurance The Company cedes risk to unrelated reinsurers on a pro rata (“quota share”) and excess of loss basis in the ordinary course of business to limit its net loss exposure on insurance contracts. Reinsurance ceded arrangements do not discharge the Company of primary liability. Moreover, reinsurers may fail to pay the Company due to a lack of reinsurer liquidity, perceived improper underwriting, and losses for risks that are excluded from reinsurance coverage and other similar factors, all of which could adversely affect the Company’s financial results. The Company had the following reinsurance balances as of December 31, 2016 and 2015: (Dollars in thousands) December 31, December 31, Reinsurance receivables, net $ 143,774 $ 115,594 Collateral securing reinsurance receivables (13,865 ) (6,445 ) Reinsurance receivables, net of collateral $ 129,909 $ 109,149 Allowance for uncollectible reinsurance receivables $ 8,040 $ 9,675 Prepaid reinsurance premiums 42,583 44,363 The reinsurance receivables above are net of a purchase accounting adjustment related to discounting acquired loss reserves to their present value and applying a risk margin to the discounted reserves. This adjustment was $2.0 million and $3.0 million at December 31, 2016 and 2015, respectively. As of December 31, 2016, the Company had one aggregate unsecured reinsurance receivable that exceeded 3% of shareholders’ equity from the following reinsurer. Unsecured reinsurance receivables include amounts receivable for paid and unpaid losses and loss adjustment expenses, less amounts secured by collateral. (Dollars in thousands) Reinsurance Receivables A.M. Best Ratings Munich Re America Corporation $ 51,178 A+ The effect of reinsurance on premiums written and earned is as follows: (Dollars in thousands) Written Earned For the year ended December 31, 2016: Direct business $ 468,046 $ 466,750 Reinsurance assumed 97,799 98,267 Reinsurance ceded (1) (94,905 ) (96,552 ) Net premiums $ 470,940 $ 468,465 For the year ended December 31, 2015: Direct business $ 458,185 $ 452,441 Reinsurance assumed 132,048 144,554 Reinsurance ceded (2) (88,989 ) (92,852 ) Net premiums $ 501,244 $ 504,143 For the year ended December 31, 2014: Direct business $ 229,978 $ 228,652 Reinsurance assumed 61,275 58,414 Reinsurance ceded (18,072 ) (18,547 ) Net premiums $ 273,181 $ 268,519 (1) Includes ceded written premiums and ceded earned premiums of $35.3 million and $43.2 million, respectively, to American Bankers Insurance Company. (2) Includes ceded written premiums and ceded earned premiums of $55.8 million and $59.5 million, respectively, to American Bankers Insurance Company. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | 10. Income Taxes The statutory income tax rates of the countries where the Company does business are 35% in the United States, 0% in Bermuda, 0% in the Cayman Islands, 0% in Gibraltar, 29.22% in the Duchy of Luxembourg, 0.25% to 2.5% in Barbados, 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 annual taxable income of each country to calculate the annual income tax expense. The Company’s income before income taxes from its non-U.S. subsidiaries and U.S. subsidiaries, including the results of the quota share and stop-loss agreements between Global Indemnity Reinsurance and the Insurance Operations, for the years ended December 31, 2016, 2015, and 2014 were as follows: Year Ended December 31, 2016: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 201,726 $ 506,061 $ (141,942 ) $ 565,845 Net premiums written $ 201,690 $ 269,250 $ — $ 470,940 Net premiums earned $ 212,325 $ 256,140 $ — $ 468,465 Net investment income 48,807 19,341 (34,165 ) 33,983 Net realized investment gains (89 ) 21,810 — 21,721 Other income (loss) (224 ) 10,569 — 10,345 Total revenues 260,819 307,860 (34,165 ) 534,514 Losses and Expenses: Net losses and loss adjustment expenses 95,812 168,191 — 264,003 Acquisition costs and other underwriting expenses 94,749 101,901 — 196,650 Corporate and other operating expenses 9,035 8,303 — 17,338 Interest expense 8,312 34,758 (34,165 ) 8,905 Income (loss) before income taxes $ 52,911 $ (5,293 ) $ — $ 47,618 Year Ended December 31, 2015: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 345,392 $ 540,500 $ (295,659 ) $ 590,233 Net premiums written $ 345,342 $ 155,902 $ — $ 501,244 Net premiums earned $ 283,448 $ 220,695 $ — $ 504,143 Net investment income 44,534 18,011 (27,936 ) 34,609 Net realized investment losses (1,039 ) (2,335 ) — (3,374 ) Other income (loss) (93 ) 3,493 — 3,400 Total revenues 326,850 239,864 (27,936 ) 538,778 Losses and Expenses: Net losses and loss adjustment expenses 141,444 133,924 — 275,368 Acquisition costs and other underwriting expenses 122,999 78,304 — 201,303 Corporate and other operating expenses 5,928 18,520 — 24,448 Interest expense 4,492 28,357 (27,936 ) 4,913 Income (loss) before income taxes $ 51,987 $ (19,241 ) $ — $ 32,746 Year Ended December 31, 2014: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 173,563 $ 229,979 $ (112,289 ) $ 291,253 Net premiums written $ 172,504 $ 100,677 $ — $ 273,181 Net premiums earned $ 168,743 $ 99,776 $ — $ 268,519 Net investment income 31,420 16,715 (19,314 ) 28,821 Net realized investment gains 926 34,934 — 35,860 Other income (loss) (65 ) 620 — 555 Total revenues 201,024 152,045 (19,314 ) 333,755 Losses and Expenses: Net losses and loss adjustment expenses 62,669 74,892 — 137,561 Acquisition costs and other underwriting expenses 70,479 39,140 — 109,619 Corporate and other operating expenses 5,243 9,316 — 14,559 Interest expense 852 19,284 (19,314 ) 822 Income (loss) before income taxes $ 61,781 $ 9,413 $ — $ 71,194 The following table summarizes the components of income tax expense (benefit): Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Current income tax expense (benefit): Non-resident withholding $ — $ — $ 6,250 Foreign 330 263 129 U.S. Federal 147 (1,785 ) 2,787 Total current income tax expense (benefit) 477 (1,522 ) 9,166 Deferred income tax benefit: U.S. Federal (2,727 ) (7,201 ) (828 ) Total deferred income tax benefit (2,727 ) (7,201 ) (828 ) Total income tax expense (benefit) $ (2,250 ) $ (8,723 ) $ 8,338 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: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Amount % of Pre- Tax Income Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average $ (1,496 ) (3.1 %) $ (6,434 ) (19.6 %) $ 3,465 4.9 % Adjustments: Non-resident withholding — — — — 6,250 8.8 Tax exempt interest (394 ) (0.8 ) (441 ) (1.3 ) (472 ) (0.7 ) Dividend exclusion (617 ) (1.3 ) (784 ) (2.4 ) (1,340 ) (1.9 ) Other 257 0.5 (1,064 ) (3.3 ) 435 0.6 Actual taxes on continuing operations $ (2,250 ) (4.7 %) $ (8,723 ) (26.6 %) $ 8,338 11.7 % The effective income tax benefit rate for 2016 was 4.7%, compared with an effective income tax benefit rate of 26.6% for 2015 and an effective income tax rate of 11.7% for 2014. The increase in the effective income tax rate in 2016 compared to 2015 is primarily due to capital gains in 2016. The decrease in the effective income tax rate in 2015 compared to 2014 is primarily due to incurring acquisition expenses related to American Reliable, a decrease in capital gains in 2015, and a $6.3 million withholding tax paid in 2014 in connection with the $125 million dividend from Global Indemnity Group Inc. to U.A.I. Luxembourg S.à.r.l. The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at December 31, 2016 and 2015 are presented below: (Dollars in thousands) 2016 2015 Deferred tax assets: Discounted unpaid losses and loss adjustment expenses $ 7,015 $ 8,222 Unearned premiums 8,802 7,884 Section 163(j) carryforward 8,075 3,135 Alternative minimum tax credit carryover 10,957 10,868 Net operating loss carryforward 3,205 1,934 Partnership K1 basis differences 238 245 Capital gain on derivative instruments 4,033 5,340 Investment impairments 3,419 2,635 Stock options 2,820 2,635 Stat-to-GAAP reinsurance reserve 1,337 1,364 Intercompany transfers 808 1,612 Depreciation and amortization — 36 Other 4,986 4,545 Total deferred tax assets 55,695 50,455 Deferred tax liabilities: Purchase accounting adjustment for American Reliable 6,095 6,095 Intangible assets 3,942 3,893 Unrealized gain on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income 352 3,896 Investment basis differences 484 1,034 Deferred acquisition costs 2,941 642 Depreciation and amortization 119 — Other 805 208 Total deferred tax liabilities 14,738 15,768 Total net deferred tax assets $ 40,957 $ 34,687 The deferred tax assets and deferred tax liabilities listed in the table above relate to temporary differences between the Company’s accounting and tax carrying values and carryforwards for its companies in the United States. Management believes it is more likely than not that the deferred tax assets will be completely utilized in future years. As a result, the Company has not recorded a valuation allowance at December 31, 2016 and 2015. The Company has an alternative minimum tax (“AMT”) credit carryforward of $11.0 million and $10.9 million as of December 31, 2016 and 2015, respectively, which can be carried forward indefinitely. The Company has a net operating loss (“NOL”) carryforward of $3.2 million, as of December 31, 2016, which will expire in 2036 and a NOL carryforward of $1.9 million, as of December 31, 2015. The Company has a Section 163(j) (“163(j)”) carryforward of $8.1 million and $3.1 million as of December 31, 2016 and 2015, respectively, which can be carried forward indefinitely. The 163(j) carryforward is for disqualified interest paid or accrued to a related entity that is not subject to U.S. tax. The Company and some of its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. The Company is no longer subject to U.S. federal tax examinations by tax authorities for tax years before 2013. Should the Company’s subsidiaries that are subject to income taxes imposed by the U.S. authorities pay a dividend to their foreign affiliates, withholding taxes would apply. The Company has not recorded deferred taxes for potential withholding tax on undistributed earnings. The Company believes, although there can be no assurances, that it qualifies for treaty benefits under the Tax Convention with Luxembourg and would be subject to a 5% withholding tax if it were to pay a dividend. Determination of the unrecognized deferred tax liability related to these undistributed earnings is not practicable because of the complexities with its hypothetical calculation. In December, 2014, Global Indemnity Group, Inc. paid a dividend of $125 million to U.A.I. (Luxembourg) S.à.r.l. and paid a 5% withholding tax of $6.3 million. The Company did not pay any dividends from a U.S. subsidiary to a foreign affiliate during 2016 or 2015. The Company applies a more-likely-than-not recognition threshold for all tax uncertainties whereby it only recognizes those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the taxing authorities. The Company had no unrecognized tax benefits during 2016 or 2015. The Company classifies all interest and penalties related to uncertain tax positions as income tax expense. The Company did not incur any interest and penalties related to uncertain tax positions during the years ended December 31, 2016, 2015 and 2014. As of December 31, 2016, the Company did not record any liabilities for tax-related interest and penalties on its consolidated balance sheets. |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Liability for Unpaid Losses and Loss Adjustment Expenses | 11. Liability for Unpaid Losses and Loss Adjustment Expenses Starting on December 31, 2016, and for future annual reporting periods, the Company has enhanced its disclosure regarding liabilities for unpaid losses and loss adjustment expenses by presenting development tables for incurred claims and paid claims, the average annual percentage payout of incurred claims by age and a reconciliation of incurred and paid claims development information to the unpaid losses and loss adjustment expenses on the balance sheet. The incurred and paid claims tables are aggregated by lines of business that have similar payout patterns. In the case of Global Indemnity, payout patterns are generally similar for property lines within their respective segments and for casualty lines within their respective segments. The tables are shown net of reinsurance and by accident year. The incurred claims tables include incurred-but-not-reported (“IBNR”) liabilities. The incurred claims tables also include quantitative information about claim frequency. Information regarding liabilities for unpaid losses and loss adjustment expenses that had been provided in prior year end reporting periods are consistent with the disclosures made in such prior year end reporting periods. Consolidated Activity Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Balance at beginning of period $ 680,047 $ 675,472 $ 779,466 Less: Ceded reinsurance receivables 108,130 123,201 192,491 Net balance at beginning of period 571,917 552,271 586,975 Purchased reserves, gross 2,007 89,489 — Less: Purchased reserves ceded (45 ) 12,800 — Purchase reserves, net of third party reinsurance 2,052 76,689 — Incurred losses and loss adjustment expenses related to: Current year 321,255 310,066 153,994 Prior years (57,252 ) (34,698 ) (16,433 ) Total incurred losses and loss adjustment expenses 264,003 275,368 137,561 Paid losses and loss adjustment expenses related to: Current year 177,006 164,058 55,485 Prior years 140,363 168,353 116,780 Total paid losses and loss adjustment expenses 317,369 332,411 172,265 Net balance at end of period 520,603 571,917 552,271 Plus: Ceded reinsurance receivables 130,439 108,130 123,201 Balance at end of period $ 651,042 $ 680,047 $ 675,472 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 2016, the Company reduced its prior accident year loss reserves by $57.3 million, which consisted of a $43.8 million decrease related to Commercial Lines and a $13.5 million decrease related to Reinsurance Operations. The $43.8 million reduction of prior accident year loss reserves related to Commercial Lines primarily consisted of the following: • Property: • General Liability: • Marine: The $13.5 million reduction of prior accident year loss reserves related to Reinsurance Operations was primarily from the property lines for accident years 2010 through 2015. Ultimate losses were lowered in these accident years based on reviews of the experience reported from cedants. During 2015, the Company reduced its prior accident year loss reserves by $34.7 million, which consisted of a $25.6 million decrease related to Commercial Lines and a $9.1 million decrease related to Reinsurance Operations. The $25.6 million reduction of prior accident year loss reserves related to Commercial Lines primarily consisted of the following: • General Liability: • Professional: The $9.1 million reduction of prior accident year loss reserves related to Reinsurance Operations was primarily driven by $6.8 million of favorable development in property mainly due to accident years 2011 through 2014 and $2.8 million of favorable development in the marine product mainly due to accident years 2010 and 2011, partially offset by adverse development of $1.0 million in workers compensation mainly due to accident year 2010. Ultimate losses from quota share underwriting years 2013 and prior were booked to the amount reported from cedants and reserve releases on legacy contracts due to better than anticipated case incurred emergence led to the recognition of favorable development. During 2014, the Company reduced its prior accident year loss reserves by $16.4 million, which consisted of a $12.5 million decrease related to Commercial Lines and a $3.9 million decrease related to Reinsurance Operations. The $12.5 million reduction of prior accident year loss reserves related to Commercial Lines primarily consisted of the following: • Property: • General Liability: • Asbestos and Environmental: • Professional: • Umbrella: • Commercial Auto: The $3.9 million reduction of prior accident year loss reserves related to Reinsurance Operations was primarily due to better than anticipated loss emergence on property lines partially offset by adverse development related to commercial auto and higher than anticipated severity on the Company’s marine product. Prior to 2001, the Company underwrote multi-peril business insuring general contractors, developers, and sub-contractors primarily involved in residential construction that has resulted in significant exposure to construction defect (“CD”) claims. The Company’s reserves for CD claims are established based upon management’s best estimate in consideration of known facts, existing case law and generally accepted actuarial methodologies. However, due to the inherent uncertainty concerning this type of business, the ultimate exposure for these claims may vary significantly from the amounts currently recorded. As of December 31, 2016 and 2015, gross reserves for CD claims were $54.5 million and $70.4 million, respectively, and net reserves for CD claims were $48.6 million and $62.2 million, respectively. The Company has exposure to asbestos and environmental (“A&E”) claims. The asbestos exposure primarily arises from the sale of product liability insurance, and the environmental exposure arises from the sale of general liability and commercial multi-peril insurance. In establishing the liability for unpaid losses and loss adjustment expenses related to A&E exposures, management considers facts currently known and the current state of the law and coverage litigation. Liabilities are recognized for known claims (including the cost of related litigation) when sufficient information has been developed to indicate the involvement of a specific insurance policy, and management can reasonably estimate its liability. In addition, liabilities have been established to cover additional exposures on both known and unasserted claims. Estimates of the liabilities are reviewed and updated regularly. Case law continues to evolve for such claims, and uncertainty exists about the outcome of coverage litigation and whether past claim experience will be representative of future claim experience. Included in net unpaid losses and loss adjustment expenses as of December 31, 2016, 2015, and 2014 were IBNR reserves of $26.7 million, $26.0 million, and $26.4 million, respectively, and case reserves of approximately $3.2 million, $4.5 million, and $4.8 million, respectively, for known A&E-related claims. The following table shows the Company’s gross reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Gross reserve for A&E losses and loss adjustment expenses—beginning of period $ 53,824 $ 56,535 $ 50,155 Plus: Incurred losses and loss adjustment expenses—case reserves (669 ) 2,666 4,333 Plus: Incurred losses and loss adjustment expenses—IBNR 2,064 (2,663 ) 7,340 Less: Payments 3,300 2,714 5,293 Gross reserves for A&E losses and loss adjustment expenses—end of period $ 51,919 $ 53,824 $ 56,535 The following table shows the Company’s net reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Net reserve for A&E losses and loss adjustment expenses—beginning of period $ 30,529 $ 31,185 $ 23,038 Plus: Incurred losses and loss adjustment expenses—case reserves (125 ) 395 2,754 Plus: Incurred losses and loss adjustment expenses—IBNR 631 (394 ) 8,241 Less: Payments 1,145 657 2,848 Net reserves for A&E losses and loss adjustment expenses—end of period $ 29,890 $ 30,529 $ 31,185 Establishing reserves for A&E and other mass tort claims involves more judgment than other types of claims due to, among other things, inconsistent court decisions, an increase in bankruptcy filings as a result of asbestos-related liabilities, and judicial interpretations that often expand theories of recovery and broaden the scope of coverage. The insurance industry continues to receive a substantial number of asbestos-related bodily injury claims, with an increasing focus being directed toward other parties, including installers of products containing asbestos rather than against asbestos manufacturers. This shift has resulted in significant insurance coverage litigation implicating applicable coverage defenses or determinations, if any, including but not limited to, determinations as to whether or not an asbestos-related bodily injury claim is subject to aggregate limits of liability found in most comprehensive general liability policies. As of December 31, 2016, 2015, and 2014, the survival ratio on a gross basis for the Company’s open A&E claims was 13.8 years, 15.0 years, and 10.8 years, respectively. As of December 31, 2016, 2015, and 2014, the survival ratio on a net basis for the Company’s open A&E claims was 19.3 years, 16.8 years, and 8.4 years, respectively. The survival ratio, which is the ratio of gross or net reserves to the 3-year average of annual paid claims, is a financial measure that indicates how long the current amount of gross or net reserves are expected to last based on the current rate of paid claims. Line of Business Categories The following is information, presented by lines of business with similar payout patterns, about incurred and paid claims development as of December 31, 2016, net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities included within the net incurred claims amounts. The information about incurred and paid claims development for the years ended December 31, 2007 to 2015, is presented as supplementary unaudited information. Commercial Lines Property and Casualty Methodologies Commercial Lines internal actuarial reserve reviews were completed for loss and allocated loss adjustment expenses (ALAE) separately for property excluding catastrophe experience, property catastrophes, and casualty reserve categories. The reserve reviews were completed with data through December, 2016. Actuarial methodologies, such as the Loss Development and Bornhuetter-Ferguson methods, were employed to develop estimates of ultimate Loss & ALAE for most reserve categories. Additional actuarial methodologies were employed to develop estimates of ultimate Loss & ALAE for mass tort and constructions defect reserve categories due to the unique characteristics of the exposures involved. Management’s ultimate selections were based on the internal actuarial review and a third party actuarial review based on data through September 2016. A rollforward, performed by the aforementioned third party, was completed through December, 2016 to determine if there have been any significant changes in development. Case incurred is subtracted from the management selected ultimates to obtain the booked IBNR reserves. These methodologies are consistent with last year. Commercial Lines cumulative claim frequency has been calculated at the claim level and includes claims closed without payment. Commercial Lines—Property (Dollars in thousands) Incurred Claims and Allocated Claims Net of Reinsurance For the Years Ended December 31, As of December 31, 2016 Accident Year 2014 2015 2016 IBNR (1) Cumulative Number (unaudited) (unaudited) 2014 $ 64,459 $ 65,529 $ 65,375 $ 3,247 6,388 2015 64,693 65,880 5,817 4,864 2016 63,632 11,855 4,047 Total $ 194,887 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Commercial Lines—Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims For the Years Ended December 31, Accident Year 2014 2015 2016 (unaudited) (unaudited) 2014 $ 45,771 $ 59,049 $ 61,085 2015 41,972 58,134 2016 39,994 Total 159,213 All outstanding liabilities before 2014, net of reinsurance 5,378 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 41,052 The following is supplementary information about average historical claims duration as of December 31, 2016: Average Annual Percentage Payout of Incurred Net of Reinsurance (Unaudited) Year 1 2 3 Commercial Lines—Property 65.5 % 22.4 % 3.1 % Commercial Lines—Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2016 Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2007 $ 222,751 $ 238,374 $ 240,974 $ 229,255 $ 219,709 $ 221,276 $ 215,716 $ 210,327 $ 208,412 $ 205,257 $ 11,119 8,690 2008 138,417 170,855 160,325 149,564 148,019 146,142 138,558 134,352 129,740 10,002 6,065 2009 93,748 96,956 104,518 104,803 104,392 96,206 92,666 89,939 9,537 3,774 2010 79,188 101,830 102,252 101,113 94,484 90,683 83,997 11,891 3,287 2011 115,441 117,602 117,288 115,193 109,420 96,761 18,682 3,478 2012 61,340 65,911 65,637 63,123 54,674 14,766 2,140 2013 63,807 68,089 66,855 65,220 14,390 2,278 2014 61,325 58,873 56,620 19,267 2,089 2015 55,628 55,141 24,547 1,715 2016 52,228 37,773 1,247 Total $ 889,577 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Commercial Lines—Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2007 $ 14,250 $ 46,819 $ 96,489 $ 136,203 $ 160,712 $ 174,488 $ 184,028 $ 188,162 $ 190,102 $ 191,564 2008 7,844 34,172 65,700 86,889 100,369 110,145 114,546 116,094 117,639 2009 5,564 19,154 37,653 53,738 65,721 71,108 73,831 76,413 2010 5,503 19,926 34,659 50,520 58,913 64,693 66,593 2011 5,451 21,325 41,282 56,562 64,885 72,247 2012 3,500 11,884 22,456 30,883 35,776 2013 6,400 17,881 28,955 37,657 2014 3,968 14,846 25,133 2015 2,958 13,922 2016 3,847 Total $ 640,791 All outstanding liabilities before 2007, net of reinsurance 62,487 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 311,274 The following is supplementary information about average historical claims duration as of December 31, 2016: Average Annual Percentage Payout of Incurred Claims by Age, Net of Year 1 2 3 4 5 6 7 8 9 10 Commercial Lines—Casualty 6.7 % 17.4 % 20.2 % 16.7 % 10.5 % 6.9 % 3.3 % 2.0 % 1.1 % 0.7 % Personal Lines Property and Casualty Methodologies Personal Lines internal actuarial reserve reviews were completed for loss and loss adjustment expenses (LAE) combined for property excluding catastrophe experience, property catastrophes, and casualty reserve categories. The reserve reviews were completed with data through December, 2016. Actuarial methodologies, such as the Loss Development and Bornhuetter-Ferguson methods, were employed to develop estimates of ultimate Loss & LAE. Management’s ultimate selections were based on the internal actuarial review and a third party actuarial review based on data through September 2016. A rollforward, performed by the aforementioned third party, was completed through December, 2016 to determine if there have been any significant changes in development. Case incurred is subtracted from the management selected ultimates to obtain the booked IBNR reserves. These methodologies are consistent with last year. Personal lines are primarily comprised of business acquired in the purchase of American Reliable, which occurred on January 1, 2015. The acquisition included the purchase of the business of the legal entity as well as additional books of business written by other Assurant entities. In addition, ceding arrangements subsequent to the date of the acquisition are not consistent with years prior to the acquisition. As a result, it is not practical, nor would it be consistent, to include information for years prior to 2015 in the development tables for Personal Lines. Personal Lines cumulative claim frequency has been calculated at the claim level and includes claims closed without payment. Personal Lines—Property (Dollars in thousands) Incurred Claims and Allocated Claims For the Years Ended As of December 31, 2016 Accident Year 2015 2016 IBNR (1) Cumulative Number (unaudited) 2015 $ 139,508 $ 137,611 $ 3,299 16,182 2016 144,916 14,179 15,724 Total $ 282,527 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Personal Lines—Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment For the Years Ended December 31, Accident Year 2015 2016 (unaudited) 2015 $ 109,953 $ 133,093 2016 121,548 Total 254,641 All outstanding liabilities before 2015, net of reinsurance 2,538 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 30,424 The following is supplementary information about average historical claims duration as of December 31, 2016. Average Annual Percentage Payout of Year 1 2 Personal Lines—Property 81.9 % 16.8 % Personal Lines—Casualty (Dollars in thousands) Incurred Claims and Allocated Claims For the Years Ended December 31, As of December 31, 2016 Accident Year 2015 2016 IBNR (1) Cumulative Number (unaudited) 2015 $ 20,566 $ 21,986 $ 8,243 1,057 2016 23,390 16,465 745 Total $ 45,376 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Personal Lines —Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment For the Years Ended December 31, Accident Year 2015 2016 (unaudited) 2015 $ 3,817 $ 9,418 2016 3,795 Total 13,213 All outstanding liabilities before 2015, net of reinsurance 11,338 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 43,500 The following is supplementary information about average historical claims duration as of December 31, 2016: Average Annual Percentage Payout of Incurred Year 1 2 Personal Lines—Casualty 16.8 % 25.5 % Reinsurance Lines Property & Casualty Methodologies Reinsurance Operations internal reserve reviews were completed for loss and allocated loss adjustment expenses (ALAE) combined for run off treaties and the current book of business. The current book of business is constituted of professional liability portfolios and retrocessions from Bermuda based companies for property catastrophe, marine business, and mortgage insurance. The reserve reviews were completed based on the latest data reported from the cedants which is typically on a quarter lag. Paid loss, ALAE and Case reserves, shown in the reinsurance category tables below, which are originally based in a foreign currency, are remeasured in U.S. dollars based on the Foreign Exchange (FX) rate at the date the cedant’s report. Management’s ultimate selections were based on a review of ultimates reported from the cedants, a third party actuarial review based on data reported through September 2016, and loss emergence during the reporting period. Case incurred is subtracted from the management selected ultimates to obtain the booked IBNR reserves. These methodologies are consistent with last year. The Company does not have direct access to claim frequency information underlying certain reinsurance contracts. As a result, the Company does not believe providing claim frequency information is practicable. Reinsurance Lines—Property (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 IBNR (1) Cumulative Number Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 $ 13,486 $ 15,041 $ 14,091 $ 14,562 $ 14,562 $ 14,562 $ 14,562 $ 248 — 2011 30,963 28,547 26,916 25,994 24,994 24,912 1,194 — 2012 10,388 10,578 9,279 8,579 8,497 616 — 2013 15,153 9,948 8,197 6,698 1,008 — 2014 21,787 18,861 14,139 1,979 — 2015 19,877 16,738 7,364 — 2016 23,646 17,739 — Total $ 109,192 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Reinsurance Lines—Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 $ 456 $ 11,678 $ 12,201 $ 14,043 $ 14,199 $ 14,231 $ 14,249 2011 12,044 19,274 20,698 22,060 22,426 22,771 2012 1,127 5,481 7,221 7,648 7,527 2013 723 4,008 5,835 5,111 2014 2,243 9,035 10,460 2015 742 5,163 2016 2,071 Total 67,352 All outstanding liabilities before 2010, net of reinsurance 181 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 42,021 The following is supplementary information about average historical claims duration as of December 31, 2016: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 Reinsurance Lines—Property 14.9 % 46.8 % 13.4 % 3.1 % 0.4 % 0.8 % 0.1 % Reinsurance Lines – Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2007 $ 3,645 $ 6,396 $ 6,359 $ 6,351 $ 6,352 $ 4,705 $ 4,931 $ 4,931 $ 3,894 $ 3,944 $ 529 — 2008 8,906 8,758 8,988 8,997 10,167 10,340 10,340 9,435 9,835 476 — 2009 20,706 23,818 25,444 30,533 30,850 31,340 31,419 31,453 391 — 2010 41,831 53,279 57,916 62,628 61,062 61,792 60,701 2,755 — 2011 45,726 48,846 44,692 47,980 46,510 43,657 2,860 — 2012 15,865 15,624 17,123 17,579 17,360 1,018 — 2013 1,224 1,262 1,172 1,013 927 — 2014 1,988 2,095 2,060 1,995 — 2015 2,908 2,911 2,782 — 2016 3,626 3,627 — Total $ 176,560 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Reinsurance Lines—Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2007 $ — $ 78 $ 852 $ 1,811 $ 1,900 $ 2,452 $ 2,674 $ 2,678 $ 2,727 $ 2,733 2008 627 1,955 5,149 5,648 6,832 8,713 8,875 8,919 2009 1,986 9,759 11,064 12,597 13,652 15,104 30,141 31,019 2010 10,185 21,447 30,754 36,090 39,123 55,315 55,848 2011 7,968 20,072 28,495 36,020 38,907 39,815 2012 5,312 9,435 11,658 15,534 15,696 2013 123 50 62 65 2014 88 47 50 2015 107 128 2016 — Total $ 154,273 All outstanding liabilities before 2007, net of reinsurance — Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 22,287 The following is supplementary information about average historical claims duration as of December 31, 2016: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 2 3 4 5 6 7 8 9 10 Reinsurance Lines—Casualty 9.2 % 10.5 % 10.8 % 15.7 % 3.9 % 11.9 % 18.4 % 1.5 % 0.8 % 0.1 % The reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and loss adjustment expenses in the consolidated balance sheets as of December 31, 2016 is as follows: Net outstanding liabilities Commercial Lines – Property $ 41,052 Commercial Lines – Casualty 311,274 Personal Lines – Property 30,424 Personal Lines – Casualty 43,500 Reinsurance Lines – Property 42,021 Reinsurance Lines – Casualty 22,287 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance 490,558 Reinsurance recoverable on unpaid claims Commercial Lines – Property $ 6,439 Commercial Lines – Casualty 76,956 Personal Lines – Property 39,708 Personal Lines – Casualty 5,352 Reinsurance Lines – Property — Reinsurance Lines – Casualty 237 Total reinsurance recoverable on unpaid claims 128,692 Other outstanding liabilities Commercial Lines Ceded Allowance 8,040 Unallocated claims adjustment expenses 17,795 Purchase accounting adjustment (2,000 ) Loss Clearing (910 ) Personal Lines Fronted business ceded to Assurant 3,748 Unallocated claims adjustment expenses 4,685 Loss Clearing (68 ) Reinsurance Lines Unallocated claims adjustment expenses 646 Other (144 ) Total other outstanding liabilities 31,792 Total gross liability for unpaid losses and loss adjustment expenses $ 651,042 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt | 12. Debt The Company’s outstanding debt consisted of the following at December 31, 2016 and 2015: December 31, (Dollars in thousands) 2016 2015 Margin Borrowing Facilities $ 66,646 $ 75,646 7.75% Subordinated Notes due 2045 96,497 96,388 Total $ 163,143 $ 172,034 Margin Borrowing Facilities The Company has available two margin borrowing facilities. The borrowing rate for each facility is tied to LIBOR and was approximately 1.6% and 1.3% at December 31, 2016 and 2015, respectively. These facilities are due on demand. The borrowings are subject to maintenance margin, which is a minimum account balance that must be maintained. A decline in market conditions could require an additional deposit of collateral. As of December 31, 2016, approximately $85.9 million in securities were deposited as collateral to support borrowings. The amount borrowed against the margin accounts may fluctuate as routine investment transactions, such as dividends received, investment income received, maturities and pay-downs, impact cash balances. The margin facilities contain customary events of default, including, without limitation, insolvency, failure to make required payments, failure to comply with any representations or warranties, failure to adequately assure future performance, and failure of a guarantor to perform under its guarantee. The amount outstanding on the Company’s margin borrowing facilities was $66.6 million and $75.6 million as of December 31, 2016 and 2015, respectively. The Company recorded interest expense related to the Margin Borrowing Facilities of approximately $1.0 million, $1.9 million, and $0.7 million for the years ended December 31, 2016, 2015, and 2014, respectively. 7.75% Subordinated Notes due 2045 On August 12, 2015, the Company issued $100.0 million in aggregate principal amount of its 2045 Subordinated Notes through an underwritten public offering. The notes bear interest at an annual rate equal to 7.75%, payable quarterly in arrears on February 15, May 15, August 15, and November 15 of each year, commencing November 15, 2015. The notes mature on August 15, 2045. The Company has the right to redeem the notes in $25 increments, in whole or in part, on and after August 15, 2020, or on any interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption. The notes are subordinated unsecured obligations and rank (i) senior to the Company’s existing and future capital stock, (ii) senior in right of payment to future junior subordinated debt, (iii) equally in right of payment with any unsecured, subordinated debt that the Company incurs in the future that ranks equally with the notes, and (iv) subordinate in right of payment to any of the Company’s existing and future senior debt. In addition, the notes are structurally subordinated to all existing and future indebtedness, liabilities and other obligations of the Company’s subsidiaries. The subordinated notes do not require the maintenance of any financial ratios or specified levels of net worth or liquidity, and do not contain provisions that would afford holders of the subordinated notes protection in the event of a sudden and dramatic decline in the Company’s credit quality resulting from any highly leveraged transaction, reorganization, restructuring, merger or similar transaction involving the Company that may adversely affect holders. The subordinated notes do not restrict the Company in any way, now or in the future, from incurring additional indebtedness, including senior indebtedness that would rank senior in right of payment to the subordinated notes. There is no right of acceleration of maturity of the subordinated notes in the case of default in the payment of principal, premium, if any, or interest on, the subordinated notes or in the performance of any other obligation of the Company under the notes or if the Company defaults on any other debt securities. Holders may accelerate payment of indebtedness on the notes only upon the Company’s bankruptcy, insolvency or reorganization. AM Best, which provides the Company’s industry rating, is giving the Company a 30% equity credit on the notes due to their 30 year maturity, as opposed to treating the notes entirely as debt. The Company incurred $3.7 million in deferred issuance costs associated with the notes, which is being amortized over the term of the notes. Interest expense, including amortization of deferred issuance costs, recognized on the notes was $7.9 million and $3.0 million for the years ended December 31, 2016 and 2015, respectively. The following table represents the amounts recorded for the 7.75% subordinated notes as of December 31, 2016 and 2015: December 31, 2016 Outstanding Unamortized Debt Net Carrying 7.75% Subordinated Notes due 2045 $ 100,000 $ (3,503 ) $ 96,497 December 31, 2015 Outstanding Unamortized Debt Net Carrying 7.75% Subordinated Notes due 2045 $ 100,000 $ (3,612 ) $ 96,388 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Shareholders' Equity | 13. Shareholders’ Equity On November 7, 2016, Global Indemnity plc, an Irish public limited company, and Global Indemnity Limited, a Cayman Islands exempted company, completed the previously disclosed scheme of arrangement under Irish law (the “Scheme of Arrangement”) that effected a transaction (the “Redomestication”) that resulted in the shareholders of Global Indemnity plc becoming shareholders of Global Indemnity Limited, and Global Indemnity plc becoming a subsidiary of Global Indemnity Limited. In accordance with the terms of the Scheme of Arrangement, the following steps occurred effectively simultaneously on November 7, 2016: 1. 13,463,864 shares of Global Indemnity plc A ordinary shares, par value $0.0001 per share, which represent all of the existing A ordinary shares excluding the treasury shares held by Global Indemnity plc and A shares held by Global Indemnity Limited, and 4,133,366 Global Indemnity plc B ordinary shares, par value $0.0001 per share, (together, the “Global Indemnity plc ordinary shares”) were cancelled. The treasury shares of Global Indemnity plc were not subject to the scheme. The carrying value of the Global Indemnity plc treasury shares, $103.2 million, were offset against the Additional Paid-in Capital account of Global Indemnity Limited, according to the Company’s policy regarding the treatment of treasury shares; 2. the reserves created on the cancellation of the Global Indemnity plc ordinary shares were used to issue 17,597,230 Global Indemnity plc ordinary shares to Global Indemnity Limited; and 3. in return for such issuance of new Global Indemnity plc ordinary shares to Global Indemnity Limited, Global Indemnity Limited issued 13,463,864 A ordinary shares, par value $0.0001 per share, and 4,133,366 Global Indemnity Limited B ordinary shares, par value $0.0001 per share (together the “Global Indemnity Limited ordinary shares”), to the former stockholders of Global Indemnity plc. Each shareholder received one Global Indemnity Limited A ordinary share for each Global Indemnity plc A ordinary share owned by such shareholder prior to the Scheme of Arrangement and one Global Indemnity Limited B ordinary share for each Global Indemnity plc B ordinary share owned by such shareholder prior to the Scheme of Arrangement. Prior to the Redomestication, the Global Indemnity plc A ordinary shares were listed on the Nasdaq Global Select Market (“Nasdaq”) under the symbol “GBLI” and registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In connection with the Redomestication, Global Indemnity plc requested that Nasdaq file with the U.S. Securities and Exchange Commission (the “SEC”) an application to strike the Global Indemnity plc A ordinary shares from listing on Nasdaq and the Global Indemnity plc A ordinary shares from registration under the Exchange Act. The Global Indemnity Limited ordinary shares are deemed registered under the Exchange Act. The Global Indemnity Limited A ordinary shares began trading on Nasdaq under the symbol “GBLI,” the same symbol under which the Global Indemnity plc ordinary shares previously traded, at the opening of Nasdaq on November 7, 2016. Dividend Restriction The ability of Global Indemnity Limited to pay dividends is subject to Cayman Island regulations. Under Cayman Islands law, dividends and distributions may only be made from distributable reserves or from amounts standing to the credit of the Company’s share premium account, together with any reserve established by the revaluation of the Company’s asset, subject to the ability of the Company to meet its obligations in the ordinary course as they fall due. Distributable reserves represents the accumulated realized profits and losses of Global Indemnity Limited on a standalone basis, which is $368.3 million as of December 31, 2016. Share premium represents the excess of the consideration paid upon the initial issuance of any share over the par value. As of December 31, 2016, share premium was $430.3 million. Reserves established by the revaluation of the Company’s asset were ($0.6) million as of December 31, 2016. As of December 31, 2016, the maximum dividends and distributions allowable under Cayman Island law is $797.9 million. Since the Company is a holding company and has no direct operations, its ability to pay dividends depends, in part, on the ability of its subsidiaries to pay dividends. Global Indemnity Reinsurance and the U.S. insurance subsidiaries are subject to significant regulatory restrictions limiting their ability to declare and pay dividends. See Note 19 for additional information regarding dividend limitations imposed on Global Indemnity Reinsurance and the U.S. insurance subsidiaries. Repurchases and Redemptions of the Company’s Ordinary Shares The Company allows employees to surrender A ordinary shares as payment for the tax liability incurred upon the vesting of restricted stock that was issued under the Company’s share incentive plan in effect at the time of issuance. During 2016, 2015, and 2014, the Company purchased an aggregate of 28,099, 11,895 and 5,444, respectively, of surrendered A ordinary shares from its employees for $0.8 million, $0.3 million and $0.1 million, respectively. All shares purchased from employees by the Company are held as treasury stock and recorded at cost until formally retired by the company. The following table provides information with respect to the A ordinary shares that were surrendered, repurchased, or redeemed in 2016: Period (1) Total Number of Shares Purchased or Average Price Paid Per Share Total Number of Plan or Program Approximate Dollar A ordinary shares: January 1 – 31, 2016 12,410 (2) $ 29.02 — — February 1 – 29, 2016 15,093 (2) $ 28.25 — — May 1 – 31, 2016 596 (2) $ 30.56 — — Total 28,099 $ 28.64 — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. There were no B ordinary shares that were surrendered, repurchased, or redeemed in 2016. On October 29, 2015, Global Indemnity entered into a redemption agreement with certain affiliates of Fox Paine & Company and agreed to redeem 8,260,870 of its ordinary shares for $190.0 million in the aggregate from affiliates of Fox Paine & Company. Global Indemnity also acquired rights, expiring December 31, 2019, to redeem an additional 3,397,031 ordinary shares for $78.1 million, which is subject to an annual 3% increase. After giving effect to the share redemptions and regardless of whether or not the additional redemption rights are exercised, affiliates of Fox Paine & Company will continue to have the ability to cast a majority of votes on matters submitted to Global Indemnity shareholders for approval. The following table provides information with respect to ordinary shares that were surrendered, repurchased, or redeemed in 2015: Period (1) Total Number of Shares Purchased or Average Price Paid Per Share Total Number of Plan or Program Approximate Dollar A ordinary shares: January 1 – 31, 2015 9,009 (2) $ 28.37 — — March 1 – 31, 2015 2,290 (2) $ 26.98 — — May 1 – 31, 2015 596 (2) $ 27.01 — — November 1 – 30, 2015 8,260,870 (3) $ 23.00 — — Total 8,272,765 $ 23.01 — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. (3) Of these shares, 7,928,004 shares were converted from B ordinary shares to A ordinary shares. Of the 7,928,004 converted shares, 4,555,061 were redeemed and 3,372,943 went into a liquidating trust. Other than the 7,928,004 B ordinary shares that were converted to A ordinary shares as noted above, no additional B ordinary shares were surrendered, repurchased or redeemed in 2015. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions | 14. Related Party Transactions Fox Paine & Company As of December 31, 2016, Fox Paine & Company beneficially owned shares having approximately 84% of the Company’s total outstanding voting power. Fox Paine & Company has the right to appoint a number of the Company’s Directors equal in aggregate to the pro rata percentage of the voting shares of the Company beneficially held by Fox Paine & Company for so long as Fox Paine & Company holds an aggregate of 25% or more of the voting power in the Company. Fox Paine & Company controls the election of all of the Company’s Directors due to its controlling share ownership. The Company’s Chairman is a member of Fox Paine & Company. The Company relies on Fox Paine & Company to provide management services and other services related to the operations of the Company. Global Indemnity Reinsurance was a limited partner in Fox Paine Capital Fund, II, which was managed by Fox Paine & Company. This investment was originally made by United National Insurance Company in June 2000 and pre-dates the September 5, 2003 acquisition by Fox Paine of Wind River Investment Corporation, which was the predecessor holding company for United National Insurance Company. In connection with the Company’s share redemption in 2015, Global Indemnity Reinsurance elected to redeem its shares in Fox Paine Capital Fund II, and as a result, the Company no longer held an interest in Fox Paine Capital Fund II as of November 10, 2015. All of Global Indemnity Reinsurance’s allocable Global Indemnity plc shares that were held by Fox Paine Capital Fund, II were transferred into a new unrelated liquidating partnership. There were no distributions received from Fox Paine Capital Fund II during the year ended December 31, 2016 or 2014. During the year ended December 31, 2015, the Company received a distribution of $0.8 million from Fox Paine Capital Fund II. The Company relies on Fox Paine & Company to provide management services and other services related to the operations of the Company. Starting in 2014, this fee is adjusted annually to reflect the percentage change in the CPI-U. In addition, the payment of the annual management fee will be deferred until a change of control or September, 2018, whichever occurs first, and is subject to an annual adjustment equal to the rate of return the Company earns on its investment portfolio. Management fee expense of $2.1 million, $1.9 million, and $1.9 million was incurred during the years ended December 31, 2016, 2015, and 2014, respectively. As of December 31, 2016 and 2015, unpaid management fees, which were included in other liabilities on the consolidated balance sheets, were $4.6 million and $2.6 million, respectively. In connection with the acquisition of American Reliable, the Company agreed to pay to Fox Paine & Company an investment banking fee of 3% of the amount paid plus the additional capital required to operate American Reliable on a standalone basis and a $1.5 million investment advisory fee, which in the aggregate, totaled $6.5 million. This amount was included in corporate and other operating expenses on the Company’s Consolidated Statements of Operations during the year ended December 31, 2015. As payment for these fees, 267,702 A ordinary shares of Global Indemnity were issued under the Global Indemnity plc Share Incentive Plan in May, 2015. These shares cannot be sold until the earlier of five years after January 1, 2015 or a change of control. See Note 16 for additional information on the Company’s share incentive plans including the Global Indemnity plc Share Incentive Plan. During 2015, the Company reimbursed Fox Paine & Company $1.2 million for expenses related to the redemption of the Company’s ordinary shares. See Note 13 for additional information on the share redemption. Cozen O’Connor The Company incurred $0.7 million, and $0.2 million for legal services rendered by Cozen O’Connor during the years ended December 31, 2015, and 2014, respectively. Stephen A. Cozen, the chairman of Cozen O’Connor, was a member of the Company’s Board of Directors until he resigned on December 31, 2015. Crystal & Company During each of the years ended December 31, 2016, 2015 and 2014, the Company incurred $0.2 million in brokerage fees to Crystal & Company, an insurance broker. James W. Crystal, the chairman and chief executive officer of Crystal & Company, was a member of the Company’s Board of Directors until he resigned on July 24, 2016. Hiscox Insurance Company (Bermuda) Ltd. Global Indemnity Reinsurance is a participant in two reinsurance agreements with Hiscox Insurance Company (Bermuda) Ltd. (“Hiscox Bermuda”) while Steve Green, the President of Global Indemnity Reinsurance, was a member of Hiscox Bermuda’s Board of Directors. Steve Green was a member of the Hiscox Bermuda’s Board of Directors until May, 2014. The Company estimated that the following earned premium and incurred losses related to these agreements have been assumed by Global Indemnity Reinsurance from Hiscox Bermuda: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Assumed earned premium $ 27 $ 2,266 $ 6,383 Assumed losses and loss adjustment expenses (527 ) 509 763 Net payable balances due from Global Indemnity Reinsurance under this agreement are as follows: As of December 31. (Dollars in thousands) 2016 2015 Net payable balance $ (107 ) $ (110 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies | 15. Commitments and Contingencies 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 December 31, 2016, the Company has funded $34.3 million of this commitment leaving $15.7 million as unfunded. In June, 2016, the Company entered into a $40 million commitment with an investment manager that provides financing for middle market companies. As of December 31, 2016, the Company has funded $30.9 million of this commitment leaving $9.1 million as unfunded. Lease Commitments Total rental expense under operating leases for the years ended December 31, 2016, 2015, and 2014 was $3.7 million, $3.5 million, and $2.6 million, respectively. Rent expense was net of sublease income of $0.02 million, $0.07 million, and $0.04 million for the years ended December 31, 2016, 2015, 2014, respectively. At December 31, 2016, future minimum cash payments under non-cancelable operating leases were as follows: (Dollars in thousands) 2017 $ 3,227 2018 3,185 2019 2,157 2020 117 Total $ 8,686 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. Other Commitments The Company is party to a Management Agreement, as amended, with Fox Paine & Company, whereby in connection with certain management services provided to it by Fox Paine & Company, the Company agreed to pay an annual management fee to Fox Paine & Company. See Note 14 above for additional information pertaining to this management agreement. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2016 | |
Share-Based Compensation Plans | 16. Share-Based Compensation Plans The fair value method of accounting recognizes share-based compensation to employees and non-employee directors in the consolidated statements of operations using the grant-date fair value of the stock options and other equity-based compensation expensed over the requisite service and vesting period. For the purpose of determining the fair value of stock option awards, the Company uses the Black-Scholes option-pricing model. An estimation of forfeitures is required when recognizing compensation expense which is then adjusted over the requisite service period should actual forfeitures differ from such estimates. Changes in estimated forfeitures are recognized through a cumulative adjustment to compensation in the period of change. The prescribed accounting guidance also requires tax benefits relating to excess stock-based compensation deductions to be prospectively presented in the consolidated statements of cash flows as financing cash inflows. The tax benefit resulting from stock-based compensation deductions in excess of amounts reported for financial reporting purposes was $0.1 million, $0.05 million, and $0.04 million for the years ended December 31, 2016, 2015 and 2014, respectively. Share Incentive Plan On June 11, 2014, the Company’s Shareholders approved the Global Indemnity plc Share Incentive Plan (the “Plan”). The previous share incentive plan, which became effective in 2003, expired per its terms on September 5, 2013. As a result of the redomestication, the Global Indemnity plc Share Incentive Plan’s sponsorship and existing obligations with respect to awards granted and outstanding were assumed by the Company and the Global Indemnity plc Share Incentive Plan was replaced with the Global Indemnity Limited Share Incentive Plan (collectively, the “Plan”). The purpose of the Plan is to give the Company a competitive advantage in attracting and retaining officers, employees, consultants and non-employee directors by offering stock options, restricted shares and other stock-based awards. Under the Plan, the Company may grant up to 2.0 million A ordinary shares pursuant to grants under the Plan. Options Award activity for stock options granted under the Plan and the weighted average exercise price per share are summarized as follows: Time-Based Options Performance- Based Options Total Weighted Average Exercise Price Per Share Options outstanding at January 1, 2014 412,500 — 412,500 $ 18.62 Options issued 325,000 — 325,000 $ 31.74 Options forfeited (125,000 ) — (125,000 ) $ 19.60 Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2014 612,500 — 612,500 $ 25.38 Options issued — 200,000 200,000 $ 28.37 Options forfeited — — — — Options exercised — — — — Options expired (12,500 ) — (12,500 ) $ 37.70 Options purchased by the Company — — — — Options outstanding at December 31, 2015 600,000 200,000 800,000 $ 25.94 Options issued — — — — Options forfeited — (200,000 ) (200,000 ) $ 28.37 Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2016 600,000 — 600,000 $ 25.13 Options exercisable at December 31, 2016 450,000 — 450,000 $ 22.71 Of the 450,000 of options exercisable at December 31, 2016, 250,000 options are still subject to a clawback which is based on the remeasurement of accident year results on the third anniversary after the options provisionally vest. During the year ended December 31, 2015, the Company awarded 200,000 options with a strike price of $28.37 which were subsequently forfeited during the year ended December 31, 2016. During the year ended December 31, 2014, the Company granted 325,000 Time-Based Options under the Plan. Of these options, 25,000 were forfeited during 2014. The remaining 300,000 stock options were issued to the Company’s Chief Executive Officer. See below for vesting schedule related to this stock award. The Company recorded $0.3 million, $0.4 million, and $0.3 million of compensation expense for stock options outstanding under the Plan in each of the years ended December 31, 2016, 2015, and 2014, respectively. The Company did not receive any proceeds from the exercise of options during 2016, 2015 or 2014 under the Plan. Amortization expense related to options outstanding is anticipated to be $0.3 million in 2017. Option intrinsic values, which are the differences between the fair value of $38.21 at December 31, 2016 and the strike price of the option, are as follows: Number of Shares Weighted Average Strike Price Intrinsic Outstanding 600,000 $ 25.13 $ 7.9 million Exercisable 450,000 $ 22.71 (1) $ 7.0 million Exercised (1) — — — (1) The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. The options exercisable at December 31, 2016 include the following: Option Price Number of options $17.87 300,000 $32.38 150,000 Options exercisable at December 31, 2016 450,000 There were no options granted under the Plan in 2016. The weighted average fair value of options granted under the Plan was $8.69 and $7.92 in 2015 and 2014, respectively, using a Black-Scholes option-pricing model and the following weighted average assumptions. 2015 2014 Dividend yield 0.0 % 0.0 % Expected volatility 31.59 % 37.7 % Risk-free interest rate 1.7 % 1.7 % Expected option life 5.0 years 6.9 years The following tables summarize the range of exercise prices of options outstanding at December 31, 2016, 2015, and 2014: Ranges of Exercise Prices Outstanding at December 31, 2016 Weighted Average Per Weighted Average $17.87 – $19.99 300,000 $ 17.87 4.7 years $20.00 – $29.99 — — N/A $30.00 – $37.70 300,000 (1) $ 32.38 7.1 years Total 600,000 (1) Ranges of Exercise Prices Outstanding at December 31, 2015 Weighted Average Per Weighted Average $17.87 – $19.99 300,000 $ 17.87 5.7 years $20.00 – $29.99 200,000 $ 28.37 9.0 years $30.00 – $37.70 300,000 (1) $ 32.38 8.1 years Total 800,000 (1) Ranges of Exercise Prices Outstanding at December 31, 2014 Weighted Average Per Weighted Average $17.87 – $19.99 300,000 $ 17.87 6.7 years $20.00 – $29.99 — — N/A $30.00 – $37.70 312,500 (1) $ 32.59 8.8 years Total 612,500 (1) Restricted Shares In addition to stock option grants, the Plan also provides for the granting of restricted shares to employees and non-employee Directors. The Company recognized compensation expense for restricted stock of $3.2 million, $3.5 million and $2.6 million for 2016, 2015, and 2014, respectively. The total unrecognized compensation expense for the non-vested restricted stock is $2.9 million at December 31, 2016, which will be recognized over a weighted average life of 1.4 years. The following table summarizes the restricted stock grants since the 2003 inception of the previous share incentive plan. Restricted Stock Awards Year Employees Directors Total Inception through 2013 711,068 405,280 1,116,348 2014 95,694 36,608 132,302 2015 138,507 36,321 174,828 2016 121,346 35,185 156,531 1,066,615 513,394 1,580,009 The following table summarizes the non-vested restricted shares activity for the years ended December 31, 2016, 2015, and 2014: Number of Shares Weighted Average Price Per Share Non-vested Restricted Shares at January 1, 2014 98,121 $ 21.48 Shares issued 132,302 $ 25.67 Shares vested (57,017 ) $ 24.29 Shares forfeited (1,131 ) $ 22.13 Non-vested Restricted Shares at December 31, 2014 172,275 $ 23.76 Shares issued 174,828 $ 28.24 Shares vested (70,503 ) $ 25.31 Shares forfeited (16,695 ) $ 24.11 Non-vested Restricted Shares at December 31, 2015 259,905 $ 26.33 Shares issued 156,531 $ 29.44 Shares vested (111,205 ) $ 26.11 Shares forfeited (5,633 ) $ 27.25 Non-vested Restricted Shares at December 31, 2016 299,598 $ 28.02 Based on the terms of the Restricted Share grants, all forfeited shares revert back to the Company. During 2014, the Company granted an aggregate of 95,694 A ordinary shares to key employees at a weighted average grant date fair value of $25.37 per share under the Plan. Of the shares granted in 2014, 5,671 were granted to a key employee and vest 33 1/3% on each subsequent anniversary date of the award for a period of three years and 11,857 were granted to the Company’s Chief Executive Officer and vest 33 1/3% on each subsequent anniversary date of the grant for a period of three years subject to an accident year true-up of bonus year underwriting results as of the third anniversary of the grant. The remaining 78,166 shares were granted to key employees and will vest as follows: • 16.5%, 16.5%, and 17.0% of the granted stock vest on the first, second, and third anniversary of the grant, respectively. • 50% of granted stock vests 100% on the third anniversary of the grant subject to accident year true-up of bonus year underwriting results and are subject to Board approval. During 2014, the Company granted 36,608 A ordinary shares, at a weighted average grant date fair value of $26.46 per share, to non-employee directors of the Company under the Plan. As noted above, an additional 18,838 A ordinary shares were issued to non-employee directors on June 12, 2014. These shares were earned by non-employee directors prior to January 1, 2014 and were conditioned on shareholders’ approval of the Plan at the Company’s June 11, 2014 annual shareholder meeting. The shareholders approved the plan at the June 11, 2014 annual shareholder meeting. During 2015, the Company granted an aggregate of 138,507 A ordinary shares to key employees at a weighted average grant date fair value of $28.37 per share under the Plan. Of the shares granted in 2015, 10,574 were granted to the Company’s Chief Executive Officer and vest 33 1/3% on each subsequent anniversary date of the grant for a period of three years subject to an accident year true-up of bonus year underwriting results as of the third anniversary of the grant and an additional 44,058 shares were granted to the Company’s Chief Executive Officer and other key employees which vest 100% on January 1, 2018. The remaining 83,875 shares were granted to key employees and will vest as follows: • 16.5%, 16.5%, and 17.0% of the granted stock vest on the first, second, and third anniversary of the grant, respectively. • 50% of granted stock vests 100% on the third anniversary of the grant subject to calendar year true-up of bonus year underwriting results and are subject to Board approval. During 2015, the Company granted 36,321 A ordinary shares, at a weighted average grant date fair value of $27.73 per share, to non-employee directors of the Company under the Plan. During 2016, the Company granted an aggregate of 121,346 A ordinary shares to key employees at a weighted average grant date fair value of $28.97 per share under the Plan. Of the shares granted in 2016, 11,199 were granted to the Company’s Chief Executive Officer and vest 33 1/3% on each subsequent anniversary date of the grant for a period of three years subject to true-up of bonus year underwriting results as of the third anniversary of the grant. 5,309 shares were granted to another key employee and vest 100% on February 7, 2019. 8,253 shares were granted to other key employees and vest 33% on the first and second anniversary of the grant and vest 34% on the third anniversary of the grant contingent on meeting certain performance objectives and subject to Board approval. The remaining 96,585 shares were granted to key employees and will vest as follows: • 16.5%, 16.5%, and 17.0% of the granted stock vest on the first, second, and third anniversary of the grant, respectively. • 50% of granted stock vests 100% on the third anniversary of the grant subject to true-up of bonus year underwriting results and are subject to Board approval. During 2016, the Company granted 35,185 A ordinary shares, at a weighted average grant date fair value of $31.05 per share, to non-employee directors of the Company under the Plan. All of the shares granted to non-employee directors in 2016, 2015, and 2014 were fully vested but subject to certain restrictions. Chief Executive Officer Effective September 19, 2011, Cynthia Y. Valko was hired as the Company’s Chief Executive Officer. Ms. Valko’s terms of employment included two equity components including the granting of 300,000 stock options with a strike price equal to the closing price of the Company’s shares on the trading day preceding the start date, or $17.87 per share, and an annual bonus opportunity of which 50% shall be paid in restricted shares based on the market value of the Company’s shares as of December 31 of the subject bonus year. The stock options vested 33 1/3% on December 31, 2012, 2013, and 2014. The restricted shares vest 33 1/3% on each anniversary of the subject bonus year. All equity components based on performance are subject to accident year true-up of bonus year underwriting results and are subject to Board approval. In 2014, Ms. Valko was awarded an additional 300,000 stock options. The stock options vest as follows: 20% vested on December 31, 2015, 30% vested on December 31, 2016, and the remaining 50% vest on December 31, 2017 and are based on achieving underwriting income, premium volume, and underwriting profitability targets, subject to an accident year true up on the 3rd anniversary of each such year. Vesting of the stock options is subject to continued employment. The exercise price applicable to the Stock Options is $25.00 subject to adjustment based on the Company’s average year-end tangible book value per share, the average interest rate of certain Treasury bonds and the time period elapsed between January 1, 2014 and the date the stock options are exercised. The stock options were granted under and are subject to the terms of the Plan, as amended, subject to shareholder approval of such plan to the extent required to affect such grant under the plan. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2016 | |
401(k) Plan | 17. 401(k) Plan The Company maintains a 401(k) defined contribution plan that covers all eligible U.S. employees. Under this plan, the Company matches 100% of the first 6% contributed by an employee. Vesting on contributions made by the Company is immediate. Total expenses for the plan were $1.9 million, $2.0 million, and $1.2 million for the years ended December 31, 2016, 2015, and 2014, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share | 18. Earnings Per Share Earnings per share have been computed using the weighted average number of ordinary shares and ordinary share equivalents outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share. Years Ended December 31, (Dollars in thousands, except share and per share data) 2016 2015 2014 Net income $ 49,868 $ 41,469 $ 62,856 Basic earnings per share: Weighted average shares outstanding—basic 17,246,717 24,253,657 25,131,811 Net income per share $ 2.89 $ 1.71 $ 2.50 Diluted earnings per share: Weighted average shares outstanding—diluted 17,547,061 24,505,851 25,331,420 Net income per share $ 2.84 $ 1.69 $ 2.48 A reconciliation of weighted average shares for basic earnings per share to weighted average shares for diluted earnings per share is as follows: Years Ended December 31, 2016 2015 2014 Weighted average shares for basic earnings per share 17,246,717 24,253,657 25,131,811 Non-vested restricted stock 187,526 148,669 100,546 Options 112,818 103,525 99,063 Weighted average shares for diluted earnings per share 17,547,061 24,505,851 25,331,420 The weighted average shares outstanding used to determine dilutive earnings per share for the years ended December 31, 2016, 2015 and 2014 do not include 300,000, 500,000, and 312,500 options, respectively, which were deemed to be anti-dilutive. The following table summarizes options which are deemed to be anti-dilutive at December 31, 2016: Grant Date Expiration Date Outstanding Strike February 9, 2014 February 9, 2024 300,000 $ 32.38 300,000 |
Statutory Financial Information
Statutory Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Statutory Financial Information | 19. Statutory Financial Information GAAP differs in certain respects from Statutory Accounting Principles (“SAP”) as prescribed or permitted by the various U.S. state insurance departments. The principal differences between SAP and GAAP are as follows: • Under SAP, investments in debt securities are primarily carried at amortized cost, while under GAAP the Company records its debt securities at estimated fair value. • Under SAP, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under SAP, certain assets designated as “Non-admitted assets” (such as prepaid expenses) are charged against surplus. • Under SAP, net deferred income tax assets are admitted following the application of specified criteria, with the resulting admitted deferred tax amount being credited directly to surplus. • Under SAP, certain premium receivables are non-admitted and are charged against surplus based upon aging criteria. • Under SAP, the costs and related receivables for guaranty funds and other assessments are recorded based on management’s estimate of the ultimate liability and related receivable settlement, while under GAAP such costs are accrued when the liability is probable and reasonably estimable and the related receivable amount is based on future premium collections or policy surcharges from in-force policies. • Under SAP, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. • Under SAP, a provision for reinsurance is charged to surplus based on the authorized status of reinsurers, available collateral, and certain aging criteria, whereas under GAAP, an allowance for uncollectible reinsurance is established based on management’s best estimate of the collectability of reinsurance receivables. The National Association of Insurance Commissioners (“NAIC”) issues model laws and regulations, many of which have been adopted by state insurance regulators, relating to: (a) risk-based capital (“RBC”) standards; (b) codification of insurance accounting principles; (c) investment restrictions; and (d) restrictions on the ability of insurance companies to pay dividends. The Company’s U.S. insurance subsidiaries are required by law to maintain certain minimum surplus on a statutory basis, and are subject to regulations under which payment of a dividend from statutory surplus is restricted and may require prior approval of regulatory authorities. Applying the current regulatory restrictions as of December 31, 2016, the maximum amount of distributions that could be paid in 2017 by the United National insurance companies, the Penn-America insurance companies, and American Reliable as dividends under applicable laws and regulations without regulatory approval is approximately $17.8 million, $8.0 million and $3.4 million, respectively. The Penn-America insurance companies limitation includes $2.6 million that would be distributed to United National Insurance Company or its subsidiary Penn Independent Corporation based on the December 31, 2016 ownership percentages. United National Specialty Insurance Company paid a $12.0 million dividend to its parent company, Diamond State Insurance Company in September, 2016. The Penn-America insurance companies and American Reliable did not declare or pay any dividends in 2016. The maximum amount of distributions that can be paid in 2017 are not impacted by the $35.0 million in dividends that were paid on January 10, 2017, which were previously declared in 2015 by the United National insurance companies. The NAIC’s RBC model provides a tool for insurance regulators to determine the levels of statutory capital and surplus an insurer must maintain in relation to its insurance and investment risks, as well as its reinsurance exposures, to assess the potential need for regulatory attention. The model provides four levels of regulatory attention, varying with the ratio of an insurance company’s total adjusted capital to its authorized control level RBC (“ACLRBC”). If a company’s total adjusted capital is: (a) less than or equal to 200%, but greater than 150% of its ACLRBC (the “Company Action Level”), the company must submit a comprehensive plan to the regulatory authority proposing corrective actions aimed at improving its capital position; (b) less than or equal to 150%, but greater than 100% of its ACLRBC (the “Regulatory Action Level”), the regulatory authority will perform a special examination of the company and issue an order specifying the corrective actions that must be followed; (c) less than or equal to 100%, but greater than 70% of its ACLRBC (the “Authorized Control Level”), the regulatory authority may take any action it deems necessary, including placing the company under regulatory control; and (d) less than or equal to 70% of its ACLRBC (the “Mandatory Control Level”), the regulatory authority must place the company under its control. Based on the standards currently adopted, the Company reported in its 2016 statutory filings that the capital and surplus of the U.S. insurance companies are above the prescribed Company Action Level RBC requirements. The following is selected information for the Company’s U.S. insurance companies, net of intercompany eliminations, where applicable, as determined in accordance with SAP: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Statutory capital and surplus, as of end of period $ 323,144 $ 318,101 $ 253,362 Statutory net income (loss) 35,618 48,633 36,003 Global Indemnity Reinsurance must also prepare annual statutory financial statements. The Bermuda Insurance Act 1978 (the “Insurance Act”) prescribes rules for the preparation and substance of these statutory financial statements which include, in statutory form, a balance sheet, an income statement, a statement of capital and surplus and notes thereto. The statutory financial statements are not prepared in accordance with GAAP or SAP and are distinct from the financial statements prepared for presentation to Global Indemnity Reinsurance’s shareholders and under the Bermuda Companies Act 1981 (the “Companies Act”), which financial statements will be prepared in accordance with GAAP. The principal differences between statutory financial statements prepared under the Insurance Act and GAAP are as follows: • Under the Insurance Act, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under the Insurance Act, prepaid expenses and intangible assets are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis. • Under the Insurance Act, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. Under the Companies Act, Global Indemnity Reinsurance may only declare or pay a dividend if it has no reasonable grounds for believing that it is, or would after the payment be, unable to pay its liabilities as they become due, or if the realizable value of its assets would not be less than the aggregate of its liabilities and its issued share capital and share premium accounts. Global Indemnity Reinsurance is also prohibited, without the approval of the BMA, from reducing by 15% or more its total statutory capital as set out in its previous year’s statutory financial statements, and any application for such approval must include such information as the BMA may require. Based upon the total statutory capital plus the statutory surplus as set out in its 2016 statutory financial statements that will be filed in 2017, Global Indemnity Reinsurance could pay a dividend of up to $324.7 million without requesting BMA approval. Global Indemnity Reinsurance is dependent on receiving distributions from its subsidiaries in order to pay the full dividend in cash. The following is selected information for Global Indemnity Reinsurance, net of intercompany eliminations, where applicable, as determined in accordance with the Bermuda Insurance Act 1978: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Statutory capital and surplus, as of end of period $ 838,923 $ 713,842 $ 923,862 Statutory net income (loss) 32,768 864 44,593 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information | 20. Segment Information The Company manages its business through three business segments: Commercial Lines, managed in Bala Cynwyd, Pennsylvania, offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs; Personal Lines, managed in Scottsdale, Arizona, offers specialty personal lines and agricultural coverage; and Reinsurance Operations, managed in Bermuda, provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. On September 30, 2016, Diamond State Insurance Company sold all the outstanding shares of capital stock of one of its wholly owned subsidiaries, United National Specialty Insurance Company, to an unrelated party. Diamond State Insurance Company received a one-time payment of $18.7 million and recognized a pretax gain of $6.9 million which is reflected in other income. This transaction will not have an impact on the Company’s ongoing business operations. Going forward, any business previously written by United National Specialty Insurance Company has been and will be written by other companies within the Company’s U.S. Insurance Operations. All three segments follow the same accounting policies used for the Company’s consolidated financial statements. For further disclosure regarding the Company’s accounting policies, please see Note 3. Prior to 2015, the Commercial Lines segment was known as Insurance Operations segment. With the acquisition of American Reliable, the Insurance Operations segment was renamed to Commercial Lines segment. American Reliable became the Company’s Personal Lines segment. For segment reporting, the values for 2014 did not change for Commercial Lines and Reinsurance Operations. The following are tabulations of business segment information for the years ended December 31, 2016, 2015, and 2014. Corporate information is included to reconcile segment data to the consolidated financial statements. 2016: (Dollars in thousands) Commercial Personal Reinsurance Operations (2) Total Revenues: Gross premiums written $ 205,120 $ 300,888 (6) $ 59,837 $ 565,845 Net premiums written $ 184,911 $ 226,228 $ 59,801 $ 470,940 Net premiums earned $ 190,727 $ 236,170 $ 41,568 $ 468,465 Other income (loss) 7,472 3,097 (224 ) 10,345 Total revenues 198,199 239,267 41,344 478,810 Losses and Expenses: Net losses and loss adjustment expenses 74,996 174,933 14,074 264,003 Acquisition costs and other underwriting expenses 77,297 (3) 103,289 (4) 16,064 196,650 Income (loss) from segments $ 45,906 $ (38,955 ) $ 11,206 $ 18,157 Unallocated Items: Net investment income 33,983 Net realized investment gains 21,721 Corporate and other operating expenses (17,338 ) Interest expense (8,905 ) Income before income taxes 47,618 Income tax benefit 2,250 Net income 49,868 Total assets $ 804,418 $ 456,654 $ 711,874 (5) $ 1,972,946 (1) Includes business ceded to the Company’s Reinsurance Operations. (2) External business only, excluding business assumed from affiliates. (3) Includes federal excise tax of $523 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $1,181 relating to cessions from Personal Lines to Reinsurance Operations. (5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries (6) Includes $35,334 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. 2015: (Dollars in thousands) Commercial Personal Reinsurance Operations (2) Total Revenues: Gross premiums written $ 214,218 $ 326,282 (6) $ 49,733 $ 590,233 Net premiums written $ 197,526 $ 254,035 $ 49,683 $ 501,244 Net premiums earned $ 199,304 $ 253,048 $ 51,791 $ 504,143 Other income (loss) 621 2,872 (93 ) 3,400 Total revenues 199,925 255,920 51,698 507,543 Losses and Expenses: Net losses and loss adjustment expenses 97,530 163,986 13,852 275,368 Acquisition costs and other underwriting expenses 83,170 (3) 99,140 (4) 18,993 201,303 Income (loss) from segments $ 19,225 $ (7,206 ) $ 18,853 $ 30,872 Unallocated Items: Net investment income 34,609 Net realized investment losses (3,374 ) Corporate and other operating expenses (24,448 ) Interest expense (4,913 ) Income before income taxes 32,746 Income tax benefit 8,723 Net income 41,469 Total assets $ 729,097 $ 510,503 $ 717,694 (5) $ 1,957,294 (1) Includes business ceded to the Company’s Reinsurance Operations. (2) External business only, excluding business assumed from affiliates. (3) Includes federal excise tax of $1,051 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $1,265 relating to cessions from Personal Lines to Reinsurance Operations. (5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries (6) Includes $55,829 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. 2014: (Dollars in thousands) Commercial Reinsurance Operations (2) Total Revenues: Gross premiums written $ 229,978 $ 61,275 (5) $ 291,253 Net premiums written $ 212,965 $ 60,216 $ 273,181 Net premiums earned $ 211,165 $ 57,354 $ 268,519 Other income (loss) 620 (65 ) 555 Total revenue 211,785 57,289 269,074 Losses and Expenses: Net losses and loss adjustment expenses 117,586 19,975 137,561 Acquisition costs and other underwriting expenses 88,983 (3) 20,636 109,619 Income from segments $ 5,216 $ 16,678 $ 21,894 Unallocated items: Net investment income 28,821 Net realized investment gains 35,860 Corporate and other operating expenses (14,559 ) Interest expense (822 ) Income before income taxes 71,194 Income tax expense (8,338 ) Net income $ 62,856 Total assets $ 1,288,763 $ 641,270 (4) $ 1,930,033 (1) Includes business ceded to the Company’s Reinsurance Operations. (2) External business only, excluding business assumed from affiliates. (3) Includes excise tax of $1,114 related to cessions from Commercial Lines to Reinsurance Operations. (4) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Information | 21. Supplemental Cash Flow Information Taxes and Interest Paid The Company paid the following net federal income taxes and interest for 2016, 2015, and 2014: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Federal income taxes paid $ 195 $ 104 $ 13,997 Federal income taxes recovered 4,889 2 136 Interest paid 8,771 3,926 804 Non-Cash Activities On January 1, 2015, Global Indemnity Group, Inc. acquired 100% of the voting equity interest of American Reliable. In conjunction with the acquisition, fair value of assets acquired and liabilities assumed by the Company were as follows: (Dollars in thousands) Fair value of assets acquired (including goodwill) $ 383,668 Liabilities assumed 283,871 |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncements | 22. New Accounting Pronouncements The following are new accounting guidance issued in 2016 which have not yet been adopted. In October, 2016, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance regarding intra-entity transfers of assets other than inventory. Under current GAAP, the tax effects of intra-entity asset transfers (intercompany sales) are deferred until the transferred asset is sold to a third party or otherwise recovered through use. This is an exception to the principle in ASC 740, Income Taxes, that generally requires comprehensive recognition of current and deferred income taxes. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. The new guidance does not apply to intra-entity transfers of inventory. The income tax consequences from the sale of inventory from one member of a consolidated entity to another will continue to be deferred until the inventory is sold to a third party. The Company is still evaluating the impact of this guidance on its financial condition, results of operations, and cash flows. In August, 2016, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance regarding the classification of certain cash receipts and cash payments within the statements of cash flows. The new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This guidance is effective for public business entities for fiscal periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. Although the Company is still evaluating the impact of this new guidance, the Company does not anticipate it will have a material impact on its financial condition, results of operations, or cash flows. In June, 2016, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance surrounding the measurement of credit losses on financial instruments. For assets held at amortized cost basis, the new guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of information for credit loss estimates. For available for sale debt securities, credit losses should be measured similar to current GAAP; however, the new guidance requires that credit losses be presented as an allowance rather than as a write-down. This guidance is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early application of this new guidance is permitted as of the fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. The Company is still evaluating the impact of this guidance on its financial condition, results of operations, and cash flows. In March, 2016, the FASB issued new accounting guidance surrounding stock compensation. The new guidance simplifies several aspects of the accounting for share-based payment, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance is effective for public entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. Although the Company is still evaluating the impact of this new guidance, the Company does not anticipate it will have a material impact on its financial condition, results of operations, or cash flows. In February, 2016, the FASB issued new accounting guidance regarding leases. The new guidance increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Although the Company is still evaluating the impact of this new guidance, the Company does not anticipate it will have a material impact on its financial condition, results of operations, or cash flows. In January, 2016, the FASB issued new accounting guidance surrounding the accounting for financial instruments. The new guidance addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. In particular, the guidance requires equity investments, except for those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with the changes in fair value recognized in net income. It also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. This guidance is effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application of this new guidance is permitted as of the beginning of the fiscal year of adoption. The Company is still evaluating the impact of this guidance on its financial condition, results of operations, and cash flows. In May, 2014, the FASB issued new accounting guidance regarding the recognition of revenue from customers arising from the transfer of goods and services. New and enhanced disclosures will also be required. In 2016, the FASB issued several new accounting pronouncements which provided clarification to existing guidance surrounding revenue from contracts with customers. Long and short duration insurance contracts, which comprise the majority of the Company’s revenues, are excluded from this accounting guidance. This guidance is effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Although the Company is still evaluating the impact of this new guidance, the Company does not anticipate it will have a material impact on its financial condition, results of operations, or cash flows. |
Summary of Quarterly Financial
Summary of Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Quarterly Financial Information (Unaudited) | 23. Summary of Quarterly Financial Information (Unaudited) An unaudited summary of the Company’s 2016 and 2015 quarterly performance is as follows: Year Ended December 31, 2016 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 121,636 $ 117,804 $ 119,553 $ 109,472 Net investment income 9,746 6,562 8,795 8,880 Net realized investment gains (losses) (7,493 ) (3,492 ) 1,928 30,778 Net losses and loss adjustment expenses 64,784 78,111 72,162 48,946 Acquisition costs and other underwriting expenses 52,090 48,542 48,129 47,889 Income (loss) before income taxes 1,953 (11,468 ) 10,598 46,535 Net income (loss) 7,125 (5,165 ) 9,535 38,373 Per share data—Diluted: Net income (loss) $ 0.41 $ (0.30 ) $ 0.54 $ 2.18 Year Ended December 31, 2015 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 127,337 $ 128,877 $ 124,707 $ 123,222 Net investment income 8,241 9,141 8,852 8,375 Net realized investment gains (losses) (2,970 ) 6,532 (10,778 ) 3,842 Net losses and loss adjustment expenses 69,619 79,560 77,691 48,498 Acquisition costs and other underwriting expenses 48,258 50,926 50,934 51,185 Income before income taxes 3,238 9,772 (9,727 ) 29,463 Net income 6,794 11,117 (3,746 ) 27,304 Per share data—Diluted: Net income $ 0.26 $ 0.43 $ (0.15 ) $ 1.30 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent events | 24. Subsequent events On February 17, 2017, the Company transferred the margin borrowing facility, described above in footnote 12, to a new broker. As of the transfer date, the Company had borrowed $74.8 million. The borrowing rate is tied to the Fed Funds Effective rate and is currently less than 1%. Approximately $95.0 million in collateral was deposited to support the transfer. The borrowing is subject to a maintenance margin, which is a minimum account balance that must be maintained. A decline in market conditions could require an additional deposit of collateral. The margin borrowing facility contains events of default, including, without limitation, insolvency, breach of contract, assignment for the benefit of the Company’s creditors, failure to comply with any representations or warranties, and proceedings to suspend the Company’s business or license by any regulator or organization. |
Summary of Investments - Other
Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Investments - Other Than Investments in Related Parties | GLOBAL INDEMNITY LIMITED SCHEDULE I—SUMMARY OF INVESTMENTS—OTHER THAN INVESTMENTS IN RELATED PARTIES (In thousands) As of December 31, 2016 Cost * Value Amount Included in Type of Investment: Fixed maturities: United States government and government agencies and authorities $ 71,517 $ 72,047 $ 72,047 States, municipalities, and political subdivisions 155,402 156,446 156,446 Mortgage-backed and asset-backed securities 506,842 505,651 505,651 Public utilities 24,949 24,847 24,847 All other corporate bonds 482,629 481,040 481,040 Total fixed maturities 1,241,339 1,240,031 1,240,031 Equity securities: Common stocks: Public utilities 8,881 9,146 9,146 Industrial and miscellaneous 110,634 111,411 111,411 Total equity securities 119,515 120,557 120,557 Other long-term investments 66,121 66,121 66,121 Total investments $ 1,426,975 $ 1,426,709 $ 1,426,709 * Original cost of equity securities; original cost of fixed maturities adjusted for amortization of premiums and accretion of discounts; original cost for other long-term investments adjusted for income or loss earned on investments in accordance with equity method of accounting. All amounts are shown net of impairment losses. |
Condensed Financial Information
Condensed Financial Information of Registrant (Parent Only) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Registrant (Parent Only) | GLOBAL INDEMNITY LIMITED SCHEDULE II—Condensed Financial Information of Registrant (Parent Only) Balance Sheets (Dollars in thousands, except share data) Years Ended ASSETS Fixed maturities $ 3,770 Cash and cash equivalents 91 Intercompany note receivable (1) 750,397 Equity in unconsolidated subsidiaries (1) 292,195 Receivable for Securities 1 Other assets 59 Total assets $ 1,046,513 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Debt $ 96,497 Intercompany notes payable (1) 141,998 Interest Payable 990 Due to affiliates (1) 8,759 Other liabilities 318 Total liabilities $ 248,562 Commitments and contingencies — Shareholders’ equity: Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued and outstanding: 13,436,548; B ordinary shares issued and outstanding: 4,133,366 2 Preferred shares, $0.0001 par value, 100,000,000 shares authorized, none issued and outstanding — Additional paid-in capital 430,283 Accumulated other comprehensive income, net of tax (618 ) Retained earnings 368,284 Total shareholders’ equity 797,951 Total liabilities and shareholders’ equity $ 1,046,513 (1) This item has been eliminated in the Company’s Consolidated Financial Statements. See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY PLC SCHEDULE II—Condensed Financial Information of Registrant (Parent Only) Balance Sheet (Dollars in thousands, except share data) Year Ended ASSETS Cash and cash equivalents $ 2,185 Equity in unconsolidated subsidiaries (1) 951,760 Due from affiliates (1) 3,645 Total assets $ 957,590 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Debt $ 96,388 Intercompany notes payable (1) 108,000 Other liabilities 3,221 Total liabilities 207,609 Commitments and contingencies — Shareholders’ equity: Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued and outstanding: 16,424,546 and 13,313,751, respectively; B ordinary shares issued and outstanding: 4,133,366 3 Deferred shares, €1 par value, 40,000 ordinary shares authorized, issued and outstanding (1) 55 Preferred shares, $0.0001 par value, 100,000,000 shares authorized, none issued and outstanding — Additional paid-in capital 529,872 Accumulated other comprehensive income, net of tax 4,078 Retained earnings 318,416 A ordinary shares in treasury, at cost: 3,110,795 shares (102,443 ) Total shareholders’ equity 749,981 Total liabilities and shareholders’ equity $ 957,590 (1) This item has been eliminated in the Company’s Consolidated Financial Statements. See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY LIMITED SCHEDULE II—Condensed Financial Information of Registrant (continued) (Parent Only) Statement of Operations and Comprehensive Income (Dollars in thousands) Year Ended Revenues: Net investment income $ 28 Total revenues 28 Expenses: Intercompany interest expense (1) 198 Other expenses 1,833 Loss before equity in earnings of unconsolidated subsidiaries (2,003 ) Equity in earnings of unconsolidated subsidiaries (1) 51,871 Net income 49,868 Other comprehensive income (loss), net of tax: Unrealized holding losses (17 ) Equity in other comprehensive loss of unconsolidated subsidiaries (1) (4,679 ) Other comprehensive loss, net of tax (4,696 ) Comprehensive income, net of tax $ 45,172 (1) This item has been eliminated in the Company’s Consolidated Financial Statements. See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY PLC SCHEDULE II—Condensed Financial Information of Registrant (continued) (Parent Only) Statements of Operations and Comprehensive Income (Dollars in thousands) Years Ended December 31, 2015 2014 Revenues: Total revenues $ — $ — Expenses: Intercompany interest expense (1) 1,296 1,296 Other expenses 8,203 4,484 Loss before equity in earnings of unconsolidated subsidiaries (9,499 ) (5,780 ) Equity in earnings of unconsolidated subsidiaries (1) 50,968 68,636 Net income 41,469 62,856 Other comprehensive income (loss), net of tax: Equity in other comprehensive loss of unconsolidated subsidiaries (1) (19,306 ) (30,644 ) Other comprehensive loss, net of tax (19,306 ) (30,644 ) Comprehensive income, net of tax $ 22,163 $ 32,212 (1) This item has been eliminated in the Company’s Consolidated Financial Statements. See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY LIMITED SCHEDULE II—Condensed Financial Information of Registrant—(continued) (Parent Only) Statements of Cash Flows (Dollars in thousands) Year Ended Net cash provided by operating activities $ 1 Cash flows from investing activities activities: Proceeds from disposition of subsidiaries 456 Capital contribution to a subsidiary (450 ) Proceeds from sale of fixed maturities 84 Net cash provided by investing activities 90 Net change in cash and equivalents 91 Cash and cash equivalents at beginning of period — Cash and cash equivalents at end of period $ 91 Supplemental Non-Cash Disclosure: The Company did not receive any non-cash dividends during the years ended December 31, 2016. See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY PLC SCHEDULE II—Condensed Financial Information of Registrant—(continued) (Parent Only) Statement of Cash Flows (Dollars in thousands) Years Ended December 31, 2015 2014 Net cash provided by (used for) operating activities $ 95,891 $ (1,598 ) Cash flows from financing activities: Proceeds from issuance of subordinated notes 100,000 — Debt issuance cost (3,659 ) — Purchases of A ordinary shares (333 ) (139 ) Tax benefit on share-based compensation expense 10 37 Redemption of ordinary shares (189,770 ) — Net cash used for financing activities (93,752 ) (102 ) Net change in cash and equivalents 2,139 (1,700 ) Cash and cash equivalents at beginning of period 46 1,746 Cash and cash equivalents at end of period $ 2,185 $ 46 Supplemental Non-Cash Disclosure: During the year ended December 31, 2014, the Company received a non-cash dividend of $2.7 million and from one of its subsidiaries which was used to repay intercompany balances due. The Company did not receive any non-cash dividends during the year ended December 31, 2015. See Notes to Consolidated Financial Statements included in Item 8. |
Supplementary Insurance Informa
Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Insurance Information | GLOBAL INDEMNITY LIMITED SCHEDULE III—SUPPLEMENTARY INSURANCE INFORMATION (Dollars in thousands) Segment Deferred Policy Acquisition Costs Future Policy Benefits, Unearned Other Policy and At December 31, 2016: Commercial Lines $ 19,755 $ 458,645 $ 94,698 $ — Personal Lines 28,381 127,350 157,464 — Reinsurance Operations 9,765 65,047 34,822 — At December 31, 2015: Commercial Lines $ 20,784 $ 524,607 $ 100,027 $ — Personal Lines 31,900 94,359 169,669 — Reinsurance Operations 3,833 61,081 16,589 — At December 31, 2014: Commercial Lines $ 21,249 $ 579,621 $ 102,118 $ — Reinsurance Operations 3,989 95,851 18,697 — Segment Premium Revenue Benefits, Claims, Amortization of Deferred Policy Acquisition Costs Net Written For the year ended December 31, 2016: Commercial Lines $ 190,727 $ 74,996 $ 42,361 $ 184,911 Personal Lines 236,170 174,933 61,416 226,228 Reinsurance Operations 41,568 14,074 10,540 59,801 Total $ 468,465 $ 264,003 $ 114,317 $ 470,940 For the year ended December 31, 2015: Commercial Lines $ 199,304 $ 97,530 $ 43,821 $ 197,526 Personal Lines 253,048 163,986 31,291 254,035 Reinsurance Operations 51,791 13,852 11,058 49,683 Total $ 504,143 $ 275,368 $ 86,170 $ 501,244 For the year ended December 31, 2014: Commercial Lines $ 211,165 $ 117,586 $ 45,015 $ 212,965 Reinsurance Operations 57,354 19,975 12,036 60,216 Total $ 268,519 $ 137,561 $ 57,051 $ 273,181 Unallocated Corporate Items Net Investment Income Corporate and Other Expenses For the year ended December 31, 2016 $ 33,983 $ 17,338 For the year ended December 31, 2015 $ 34,609 $ 24,448 For the year ended December 31, 2014 $ 28,821 $ 14,559 |
Reinsurance Earned Premiums
Reinsurance Earned Premiums | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Earned Premiums | GLOBAL INDEMNITY LIMITED SCHEDULE IV—REINSURANCE EARNED PREMIUMS (Dollars in thousands) Direct Amount Ceded to Other Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net For the year ended December 31, 2016: Property & Liability Insurance $ 466,750 $ 96,552 $ 98,267 $ 468,465 21.0 % For the year ended December 31, 2015: Property & Liability Insurance $ 452,441 $ 92,852 $ 144,554 $ 504,143 28.7 % For the year ended December 31, 2014: Property & Liability Insurance $ 228,652 $ 18,547 $ 58,414 $ 268,519 21.8 % |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts and Reserves | GLOBAL INDEMNITY LIMITED SCHEDULE V—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Dollars in thousands) Description Balance at Period Charged (Credited) to Costs Charged (Credited) Other Deductions Balance at End of Period For the year ended December 31, 2016: Investment asset valuation reserves: Mortgage loans $ — $ — $ — $ — $ — Real estate — — — — — Allowance for doubtful accounts: Premiums, accounts and notes receivable $ 1,646 $ 282 $ — $ — $ 1,928 Deferred tax asset valuation allowance — — — — — Reinsurance receivables 9,675 (1,635 ) — — 8,040 For the year ended December 31, 2015: Investment asset valuation reserves: Mortgage loans $ — $ — $ — $ — $ — Real estate — — — — — Allowance for doubtful accounts: Premiums, accounts and notes receivable $ 1,518 $ 128 $ — $ — $ 1,646 Deferred tax asset valuation allowance — — — — — Reinsurance receivables 9,350 325 — — 9,675 For the year ended December 31, 2014: Investment asset valuation reserves: Mortgage loans $ — $ — $ — $ — $ — Real estate — — — — — Allowance for doubtful accounts: Premiums, accounts and notes receivable $ 1,782 $ (264 ) $ — $ — $ 1,518 Deferred tax asset valuation allowance — — — — — Reinsurance receivables 9,010 340 — — 9,350 |
Supplementary Information For P
Supplementary Information For Property Casualty Underwriters | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Information For Property Casualty Underwriters | GLOBAL INDEMNITY LIMITED SCHEDULE VI—SUPPLEMENTARY INFORMATION FOR PROPERTY CASUALTY UNDERWRITERS (Dollars in thousands) Deferred Policy Acquisition Costs Reserves for Discount If Any Deducted Unearned Consolidated Property & Casualty Entities: As of December 31, 2016 $ 57,901 $ 651,042 $ 2,000 $ 286,984 As of December 31, 2015 56,517 680,047 3,000 286,285 As of December 31, 2014 25,238 675,472 4,000 120,815 Earned Net Claims and Claim Adjustment Amortization Of Deferred Policy Acquisition Costs Paid Claims and Claim Premiums Current Year Prior Year Consolidated Property & Casualty Entities: For the year ended December 31, 2016 $ 468,465 $ 33,983 $ 321,255 $ (57,252 ) $ 114,317 $ 317,369 $ 470,940 For the year ended December 31, 2015 504,143 34,609 310,066 (34,698 ) 86,170 332,417 501,244 For the year ended December 31, 2014 268,519 28,821 153,994 (16,433 ) 57,051 172,265 273,181 |
Principles of Consolidation a39
Principles of Consolidation and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Business Segments | Starting in the 1 st quarter of 2015, the Company manages its business through three business segments: Commercial Lines, Personal Lines, and Reinsurance Operations. The Company’s Commercial Lines, managed in Bala Cynwyd, Pennsylvania, offers specialty property and casualty insurance products in the excess and surplus lines marketplace. The Company manages its Commercial Lines by differentiating them into three product classifications: Penn-America, which markets property and general liability products to small commercial businesses through a select network of wholesale general agents with specific binding authority; United National, which markets insurance products for targeted insured segments, including specialty products, such as property, general liability, and professional lines through program administrators with specific binding authority; and Diamond State, which markets property, casualty, and professional lines products, which are developed by the Company’s underwriting department by individuals with expertise in those lines of business, through wholesale brokers and also markets through program administrators having specific binding authority. These product classifications comprise the Company’s Commercial Lines business segment and are not considered individual business segments because each product has similar economic characteristics, distribution, and coverage. The Company’s Personal Lines segment, via the American Reliable product classification, offers specialty personal lines and agricultural coverage through general and specialty agents with specific binding authority on an admitted basis and is managed in Scottsdale, AZ. Collectively, the Company’s U.S. insurance subsidiaries are licensed in all 50 states and the District of Columbia. The Company’s Reinsurance Operations consist solely of the operations of its Bermuda-based wholly-owned subsidiary, Global Indemnity Reinsurance. Global Indemnity Reinsurance is a treaty reinsurer of specialty property and casualty insurance and reinsurance companies. The Company’s Reinsurance Operations segment provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. |
Intercompany Balances and Transactions | The consolidated financial statements 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 consolidated financial statements include the accounts of Global Indemnity and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Investments | Investments The Company’s investments in fixed maturities and equity securities are classified as available for sale and are carried at their fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of the Company’s available for sale portfolio, excluding interests in limited liability companies and limited partnerships, are determined on the basis of quoted market prices where available. If quoted market prices are not available, the Company uses third party pricing services to assist in determining fair value. In many instances, these services examine the pricing of similar instruments to estimate fair value. The Company purchases bonds with the expectation of holding them to their maturity; however, changes to the portfolio are sometimes required to assure it is appropriately matched to liabilities. In addition, changes in financial market conditions and tax considerations may cause the Company to sell an investment before it matures. The difference between amortized cost and fair value of the Company’s available for sale investments, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders’ equity and, accordingly, has no effect on net income other than for the credit loss component of impairments deemed to be other than temporary. For investments in limited liability companies and limited partnerships where the ownership interest is less than 3%, the Company carries these investments at fair value, and the change in the difference between cost and the fair value of the partnership interests, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders’ equity and, accordingly, has no effect on net income other than for impairments deemed to be other than temporary. The Company uses the equity method to account for an investments in limited liability companies and limited partnerships where its ownership interest exceeds 3%. The equity method of accounting for an investment in a limited liability company or limited partnership requires that its cost basis be updated to account for the income or loss earned on the investment. The income or loss associated with the limited liability companies or limited partnerships is reflected in the consolidated statements of operations, and the adjusted cost basis approximates fair value. The Company’s investments in other invested assets were valued at $66.1 million and $32.6 million as of December 31, 2016 and 2015, respectively. These amounts relate to investments in limited liability companies and limited partnerships. The Company does not have access to daily valuations, therefore; the estimated fair value of the limited liability companies and limited partnerships are based on net asset value as a practical expedient for the limited liability companies and limited partnerships. Net realized gains and losses on investments are determined based on the first-in, first-out method. The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each fixed maturity security in an unrealized loss position to assess whether the security has a credit loss. Specifically, the Company considers credit rating, market price, and issuer specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities for which the Company determines that a credit loss is likely are subjected to further analysis through discounted cash flow testing to estimate the credit loss to be recognized in earnings, if any. The specific methodologies and significant assumptions used by asset class are discussed below. Upon identification of such securities and periodically thereafter, a detailed review is performed to determine whether the decline is considered other than temporary. This review includes an analysis of several factors, including but not limited to, the credit ratings and cash flows of the securities and the magnitude and length of time that the fair value of such securities is below cost. For fixed maturities, the factors considered in reaching the conclusion that a decline below cost is other than temporary include, among others, whether: (1) the issuer is in financial distress; (2) the investment is secured; (3) a significant credit rating action occurred; (4) scheduled interest payments were delayed or missed; (5) changes in laws or regulations have affected an issuer or industry; (6) 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; and (7) the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized. 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 the Company must recognize an other than temporary impairment with the entire unrealized loss being recorded through earnings. For debt securities in an unrealized loss position not meeting these conditions, the Company assesses whether the impairment of a security is other than temporary. If the impairment is deemed to be other than temporary, the Company must separate the other than temporary impairment into two components: the amount representing the credit loss and the amount related to all other factors, such as changes in interest rates. The credit loss represents the portion of the amortized book value in excess of the net present value of the projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. The credit loss component of the other than temporary impairment is recorded through earnings, whereas the amount relating to factors other than credit losses is recorded in other comprehensive income, net of taxes. For equity securities, management carefully reviews all securities with unrealized losses to determine if a security should be impaired and further focuses on securities that have either: (1) persisted with unrealized losses for more than twelve consecutive months or (2) the value of the investment has been 20% or more below cost for six continuous months or more. The amount of any write-down, including those that are deemed to be other than temporary, is included in earnings as a realized loss in the period in which the impairment arose. For an analysis of other than temporary losses that were recorded for the years ended December 31, 2016, 2015, and 2014, please see Note 5 below. |
Variable Interest Entities | 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 interests in two VIEs 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purpose of the statements of cash flows, the Company considers all liquid instruments with an original maturity of three months or less to be cash equivalents. The Company has a cash management program that provides for the investment of excess cash balances primarily in short-term money market instruments. Generally, bank balances exceed federally insured limits. The carrying amount of cash and cash equivalents approximates fair value. At December 31, 2016, the Company had approximately $52.0 million of cash and cash equivalents that was invested in a diversified portfolio of high quality short-term debt securities. |
Valuation of Premium Receivable | Valuation of Premium Receivable The Company evaluates the collectability of premium receivable based on a combination of factors. In instances in which the Company is aware of a specific circumstance where a party may be unable to meet its financial obligations to the Company, a specific allowance for bad debts against amounts due is recorded to reduce the net receivable to the amount reasonably believed by management to be collectible. For all remaining balances, allowances are recognized for bad debts based on the length of time the receivables are past due. The allowance for bad debts was $1.9 million and $1.6 million as of December 31, 2016 and 2015, respectively. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company tests for impairment of goodwill at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of goodwill for impairment using both qualitative and quantitative factors. Impairment of goodwill is recognized only if the carrying amount of the reporting unit, including goodwill, exceeds the fair value of the reporting unit. The amount of the impairment loss would be equal to the excess carrying value of the goodwill over the implied fair value of the reporting unit goodwill. Based on the qualitative assessment performed, there was no impairment of goodwill as of December 31, 2016. Impairment of intangible assets with an indefinite useful life is tested at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of indefinite lived intangible assets for impairment using both qualitative and quantitative factors. Impairment of indefinite lived intangible assets is recognized only if the carrying amount of the intangible assets exceeds the fair value of said assets. The amount of the impairment loss would be equal to the excess carrying value of the assets over the fair value of said assets. Based on the qualitative assessment performed, there were no impairments of indefinite lived intangible assets as of December 31, 2016. Intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated useful lives. The carrying amounts of definite lived intangible assets are regularly reviewed for indicators of impairment in accordance with applicable accounting guidance. Impairment is recognized only if the carrying amount of the intangible asset is in excess of its undiscounted projected cash flows. The impairment is measured as the difference between the carrying amount and the estimated fair value of the asset. As of December 31, 2016, there were no triggering events that occurred during the year that would result in an impairment of definite lived intangible assets. See Note 8 for additional information on goodwill and intangible assets. |
Reinsurance | Reinsurance In the normal course of business, the Company seeks to reduce the loss that may arise from events that cause unfavorable underwriting results by reinsuring certain levels of risk from various areas of exposure with reinsurers. Amounts receivable from reinsurers are estimated in a manner consistent with the reinsured policy and the reinsurance contract. The Company regularly reviews the collectability of reinsurance receivables. An allowance for uncollectible reinsurance receivable is recognized based on the financial strength of the reinsurers and the length of time any balances are past due. Any changes in the allowance resulting from this review are included in net losses and loss adjustment expenses on the consolidated statements of operations during the period in which the determination is made. The allowance for uncollectible reinsurance was $8.0 million and $9.7 million as of December 31, 2016 and 2015, respectively. The applicable accounting guidance requires that the reinsurer must assume significant insurance risk under the reinsured portions of the underlying insurance contracts and that there must be a reasonably possible chance that the reinsurer may realize a significant loss from the transaction. The Company has evaluated its reinsurance contracts and concluded that each contract qualifies for reinsurance accounting treatment pursuant to this guidance. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. The deferred tax asset balance is analyzed regularly by management. This assessment requires significant judgment and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of carryforward periods, and tax planning strategies and/or actions. Management believes that it is more likely than not that the results of future operations can generate sufficient taxable income to realize the remaining deferred income tax assets, and accordingly, the Company has not established any valuation allowances. |
Deferred Acquisition Costs | Deferred Acquisition Costs The costs of acquiring new and renewal insurance and reinsurance contracts include commissions, premium taxes and certain other costs that are directly related to the successful acquisition of new and renewal insurance and reinsurance contracts. The excess of the Company’s costs of acquiring new and renewal insurance and reinsurance contracts over the related ceding commissions earned from reinsurers is capitalized as deferred acquisition costs and amortized over the period in which the related premiums are earned. The amortization of deferred acquisition costs for the years ended December 31, 2016, 2015, and 2014 was $114.3 million, $86.2 million, and $57.1 million, respectively. |
Premium Deficiency | Premium Deficiency A premium deficiency is recognized if the sum of expected loss and loss adjustment expenses and unamortized acquisition costs exceeds related unearned premium after consideration of investment income. This evaluation is done at a product line level in Insurance Operations and at a treaty level in Reinsurance Operations. Any future expected loss on the related unearned premium is recorded first by impairing the unamortized acquisition costs on the related unearned premium followed by an increase to loss and loss adjustment expense reserves on additional expected loss in excess of unamortized acquisition costs. For the years ended December 31, 2016, 2015, and 2014, the total premium deficiency charges were $0.3 million, $0.2 million, and $0.4 million, respectively, comprised solely of reductions to unamortized deferred acquisition costs within the commercial automobile lines in the Commercial Lines Segment. Based on the Company’s analysis, the Company expensed acquisition cost as incurred for the remainder of 2016, 2015 and 2014 for the commercial automobile lines in the Commercial Lines Segment. As the charges were a reduction of unamortized deferred acquisition costs in each respective period, no premium deficiency reserve existed as of December 31, 2016 or 2015. |
Derivative Instruments | Derivative Instruments The Company uses derivative instruments to manage its exposure to cash flow variability from interest rate risk. The derivative instruments are carried on the balance sheet at fair value and included in other assets and other liabilities. Changes in the fair value of the derivative instruments and the periodic net interest settlements under the derivatives instruments are recognized as net realized investment gains on the consolidated statements of operations. |
Margin Borrowing Facilities | Margin Borrowing Facilities The carrying amounts reported in the balance sheet represent the outstanding borrowings. The outstanding borrowings are due on demand; therefore, the cash receipts and cash payments related to the margin borrowing facilities are shown net in the consolidated statements of cash flows. |
Subordinated Notes | Subordinated Notes The carrying amounts reported in the balance sheet represent the outstanding balances, net of deferred issuance cost. See Note 12 for details. |
Unpaid Losses and Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses The liability for unpaid losses and loss adjustment expenses represents the Company’s best estimate of future amounts needed to pay losses and related settlement expenses with respect to events insured by the Company. This liability is based upon the accumulation of individual case estimates for losses reported prior to the close of the accounting period with respect to direct business, estimates received from ceding companies with respect to assumed reinsurance, and estimates of unreported losses. The process of establishing the liability for unpaid losses and loss adjustment is complex, requiring the use of informed actuarially based estimates and management’s judgment. In some cases, significant periods of time, up to several years or more, may elapse between the occurrence of an insured loss and the reporting of that loss to the Company. To establish this liability, the Company regularly reviews and updates the methods of making such estimates and establishing the resulting liabilities. Any resulting adjustments are recorded in consolidated statements of operations during the period in which the determination is made. |
Retirement of Treasury Stock | Retirement of Treasury Stock Upon the formal retirement of treasury stock, the Company offsets the par value of the treasury stock that is being retired against Ordinary Shares and reflects any excess of cost over par value as a deduction from Additional Paid-in Capital. |
Premiums | Premiums Premiums are recognized as revenue ratably over the term of the respective policies and treaties. Unearned premiums are computed on a pro rata basis to the day of expiration. Mandatory reinstatement premiums assessed on reinsurance policies are earned in the period of the loss event that gave rise to the reinstatement premiums. |
Contingent Commissions | Contingent Commissions Certain professional general agencies of the Insurance Operations are paid special incentives, referred to as contingent commissions, when results of business produced by these agencies are more favorable than predetermined thresholds. Similarly, in some circumstances, companies that cede business to the Reinsurance Operations are paid profit commissions based on the profitability of the ceded portfolio. These commissions are charged to other underwriting expenses when incurred. |
Share-Based Compensation | Share-Based Compensation The Company accounts for stock options and other equity based compensation using the modified prospective application of the fair value-based method permitted by the appropriate accounting guidance. See Note 16 for details. |
Earnings per Share | Earnings per Share Basic earnings per share have been calculated by dividing net income available to common shareholders by the weighted-average ordinary shares outstanding. Diluted earnings per share has been calculated by dividing net income available to common shareholders by the sum of the weighted-average ordinary shares outstanding and the weighted-average common share equivalents outstanding, which include options and other equity awards. See Note 18 for details. |
Foreign Currency | Foreign Currency The Company maintains investments and cash accounts in foreign currencies related to the operations of its business. At period-end, the Company re-measures non-U.S. currency financial assets to their current U.S. dollar equivalent. The resulting gain or loss for foreign denominated investments is reflected in accumulated other comprehensive income in shareholders’ equity; whereas, the gain or loss on foreign denominated cash accounts is reflected in income during the period. Financial liabilities, if any, are generally adjusted within the reserving process. However, for known losses on claims to be paid in foreign currencies, the Company re-measures the liabilities to their current U.S. dollar equivalent each period end with the resulting gain or loss reflected in income during the period. Net transaction gains and losses, primarily comprised of re-measurement of known losses on claims to be paid in foreign currencies, were a loss of $0.7 million for the year ended December 31, 2016 and gains of $0.4 million and $0.5 million for the years ended December 31, 2015 and 2014, respectively. |
Other Income | Other Income On September 30, 2016, Diamond State Insurance Company sold all the outstanding shares of capital stock of one of its wholly owned subsidiaries, United National Specialty Insurance Company, to an unrelated party. Diamond State Insurance Company received a one-time payment of $18.7 million and recognized a pretax gain of $6.9 million which is reflected in other income. This transaction will not have an impact on the Company’s ongoing business operations. Going forward, any business previously written by United National Specialty Insurance Company has been and will be written by other companies within the Company’s U.S. Insurance Operations. In addition, other income is comprised of fee income on policies issued, commission income, accrued interest on the anticipated indemnification of unpaid loss and loss adjustment expense reserve, and foreign exchange gains and losses. |
Fair Value Measurement Policy | The Company’s invested assets and derivative instruments 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: • Common stock prices are received from all primary and secondary exchanges. • Corporate and agency bonds are evaluated by utilizing a multi-dimensional relational model. For bonds with early redemption options, an option adjusted spread model is utilized. Both asset classes use standard inputs and incorporate security set up, defined sector breakdown, benchmark yields, apply base spreads, yield to maturity, and adjust for corporate actions. • Data from commercial vendors is aggregated with market information, then converted into a prepayment/spread/LIBOR curve model used for commercial mortgage obligations (“CMO”). CMOs are categorized with mortgage-backed securities in the tables listed above. For asset-backed securities, data derived from market information along with trustee and servicer reports is converted into spreads to interpolated swap yield curve. For both asset classes, evaluations utilize standard inputs plus new issue data, monthly payment information, and collateral performance. The evaluated pricing models incorporate discount rates, loan level information, prepayment speeds, treasury benchmarks, and LIBOR and swap curves. • For obligations of state and political subdivisions, a multi-dimensional relational model is used to evaluate securities. The pricing models incorporate security set-up, benchmark yields, apply base spreads, yield to worst or market convention, ratings updates, prepayment schedules and adjustments for material events notices. • U.S. treasuries are evaluated by obtaining feeds from a number of live data sources including active market makers and inter-dealer brokers. • For mortgage-backed securities, a matrix model correlation to TBA (a forward MBS trade) or benchmarking is utilized to value a security. |
Statutory Income Tax Rates | The statutory income tax rate of each country is applied against the annual taxable income of each country to calculate the annual income tax expense. |
Tax Uncertainties | The Company applies a more-likely-than-not recognition threshold for all tax uncertainties whereby it only recognizes those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the taxing authorities. |
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. |
Share-Based Compensation | The fair value method of accounting recognizes share-based compensation to employees and non-employee directors in the consolidated statements of operations using the grant-date fair value of the stock options and other equity-based compensation expensed over the requisite service and vesting period. For the purpose of determining the fair value of stock option awards, the Company uses the Black-Scholes option-pricing model. An estimation of forfeitures is required when recognizing compensation expense which is then adjusted over the requisite service period should actual forfeitures differ from such estimates. Changes in estimated forfeitures are recognized through a cumulative adjustment to compensation in the period of change. The prescribed accounting guidance also requires tax benefits relating to excess stock-based compensation deductions to be prospectively presented in the consolidated statements of cash flows as financing cash inflows. The tax benefit resulting from stock-based compensation deductions in excess of amounts reported for financial reporting purposes was $0.1 million, $0.05 million, and $0.04 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Financial Information | Indemnity Reinsurance must also prepare annual statutory financial statements. The Bermuda Insurance Act 1978 (the “Insurance Act”) prescribes rules for the preparation and substance of these statutory financial statements which include, in statutory form, a balance sheet, an income statement, a statement of capital and surplus and notes thereto. The statutory financial statements are not prepared in accordance with GAAP or SAP and are distinct from the financial statements prepared for presentation to Global Indemnity Reinsurance’s shareholders and under the Bermuda Companies Act 1981 (the “Companies Act”), which financial statements will be prepared in accordance with GAAP. The principal differences between statutory financial statements prepared under the Insurance Act and GAAP are as follows: • Under the Insurance Act, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under the Insurance Act, prepaid expenses and intangible assets are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis. • Under the Insurance Act, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. |
Global Indemnity Reinsurance | |
Financial Information | GAAP differs in certain respects from Statutory Accounting Principles (“SAP”) as prescribed or permitted by the various U.S. state insurance departments. The principal differences between SAP and GAAP are as follows: • Under SAP, investments in debt securities are primarily carried at amortized cost, while under GAAP the Company records its debt securities at estimated fair value. • Under SAP, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under SAP, certain assets designated as “Non-admitted assets” (such as prepaid expenses) are charged against surplus. • Under SAP, net deferred income tax assets are admitted following the application of specified criteria, with the resulting admitted deferred tax amount being credited directly to surplus. • Under SAP, certain premium receivables are non-admitted and are charged against surplus based upon aging criteria. • Under SAP, the costs and related receivables for guaranty funds and other assessments are recorded based on management’s estimate of the ultimate liability and related receivable settlement, while under GAAP such costs are accrued when the liability is probable and reasonably estimable and the related receivable amount is based on future premium collections or policy surcharges from in-force policies. • Under SAP, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. • Under SAP, a provision for reinsurance is charged to surplus based on the authorized status of reinsurers, available collateral, and certain aging criteria, whereas under GAAP, an allowance for uncollectible reinsurance is established based on management’s best estimate of the collectability of reinsurance receivables. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Unaudited Pro Forma Consolidated Results of Operations | The following table presents the Company’s unaudited pro forma consolidated results of operations for the years December 31, 2015 and 2014 as if the acquisition had occurred on January 1, 2014 instead of January 1, 2015. Pro Forma Years Ended December 31, (Dollars in thousands except per share data) 2015 2014 Total Revenue $ 538,778 $ 597,583 Net Income (Loss) $ 46,864 $ 63,053 Net Income (Loss) per share (diluted) $ 1.91 $ 2.46 |
Intangible assets | An identification and valuation of intangible assets was performed that resulted in the recognition of intangible assets of $32.0 million with values assigned as follows: (Dollars in thousands) Description Useful Life Amount State insurance licenses Indefinite $ 5,000 Value of business acquired < 1 year 25,500 Agent relationships 10 years 900 Trade name 7 years 600 $ 32,000 |
Expected Amortization Expense | The Company expects that amortization expense for the next five years will be as follows: (Dollars in thousands) 2017 $ 529 2018 529 2019 529 2020 529 2021 529 |
American Reliable Insurance Company | |
Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the date of the acquisition. (Dollars in thousands) ASSETS: Investments $ 226,458 Cash and cash equivalents 21,360 Premiums receivables, net 26,102 Accounts receivable 11,311 Reinsurance receivables 13,842 Prepaid reinsurance premiums 43,506 Intangible assets 32,000 Deferred federal income taxes 915 Other assets 6,473 Total assets 381,967 LIABILITIES: Unearned premiums 172,234 Unpaid losses and loss adjustment expenses 89,489 Reinsurance balances payable 13,219 Contingent commissions 3,903 Other liabilities 5,026 Total liabilities 283,871 Estimated fair value of net assets acquired 98,096 Purchase price 99,797 Goodwill $ 1,701 |
Intangible assets | The following table presents details of the Company’s intangible assets arising from the American Reliable acquisition as of December 31, 2015: (Dollars in thousands) Description Useful Life Cost Accumulated Net State insurance licenses Indefinite $ 5,000 $ — $ 5,000 Value of business acquired < 1 year 25,500 25,500 0 Agent relationships 10 years 900 90 810 Trade name 7 years 600 86 514 $ 32,000 $ 25,676 $ 6,324 |
Expected Amortization Expense | As of December 31, 2015, the Company expected that amortization expense for the next five years related to the American Reliable acquisition will be as follows: (Dollars in thousands) 2016 $ 176 2017 176 2018 176 2019 176 2020 176 |
Fair Value, Gross Contractual Amounts Due, and Contractual Cash Flows Not Expected to be Collected of Acquired Receivables | As of December 31, 2015, the fair value, gross contractual amounts due, and contractual cash flows not expected to be collected of acquired receivables were as follows: (Dollars in thousands) Fair Value Gross Contractual Premium receivables $ 26,102 $ 26,896 $ 794 Accounts receivable 11,311 11,311 — Reinsurance receivables 13,842 13,842 — |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Amortized Cost and Estimated Fair Value of Investments | The amortized cost and estimated fair value of investments were as follows as of December 31, 2016 and 2015: (Dollars in thousands) Amortized Cost Gross Gross Estimated Other than As of December 31, 2016 Fixed maturities: U.S. treasury and agency obligations $ 71,517 $ 763 $ (233 ) $ 72,047 $ — Obligations of states and political subdivisions 155,402 1,423 (379 ) 156,446 — Mortgage-backed securities 88,131 895 (558 ) 88,468 — Asset-backed securities 233,890 684 (583 ) 233,991 (4 ) Commercial mortgage-backed securities 184,821 118 (1,747 ) 183,192 — Corporate bonds 381,209 1,666 (2,848 ) 380,027 — Foreign corporate bonds 126,369 164 (673 ) 125,860 — Total fixed maturities 1,241,339 5,713 (7,021 ) 1,240,031 (4 ) Common stock 119,515 3,445 (2,403 ) 120,557 — Other invested assets 66,121 — — 66,121 — Total $ 1,426,975 $ 9,158 $ (9,424 ) $ 1,426,709 $ (4 ) (1) Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”). (Dollars in thousands) Amortized Cost Gross Gross Estimated Other than As of December 31, 2015 Fixed maturities: U.S. treasury and agency obligations $ 106,303 $ 1,140 $ (321 ) $ 107,122 $ — Obligations of states and political subdivisions 203,121 2,576 (457 ) 205,240 — Mortgage-backed securities 157,753 2,113 (743 ) 159,123 — Asset-backed securities 261,008 435 (1,421 ) 260,022 (9 ) Commercial mortgage-backed securities 142,742 — (2,352 ) 140,390 — Corporate bonds 334,720 685 (3,294 ) 332,111 — Foreign corporate bonds 102,686 194 (739 ) 102,141 — Total fixed maturities 1,308,333 7,143 (9,327 ) 1,306,149 (9 ) Common stock 100,157 16,118 (5,960 ) 110,315 — Other invested assets 32,592 — — 32,592 — Total $ 1,441,082 $ 23,261 $ (15,287 ) $ 1,449,056 $ (9 ) (1) Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”). |
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 December 31, 2016, 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 Cost Estimated Due in one year or less $ 80,840 $ 80,982 Due in one year through five years 623,678 622,926 Due in five years through ten years 20,356 20,770 Due in ten years through fifteen years 3,245 3,252 Due after fifteen years 6,378 6,450 Mortgage-backed securities 88,131 88,468 Asset-backed securities 233,890 233,991 Commercial mortgage-backed securities 184,821 183,192 Total $ 1,241,339 $ 1,240,031 |
Summary of Securities With Gross Unrealized Losses | The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2016: Less than 12 months 12 months or longer (1) Total (Dollars in thousands) Fair Value Gross Fair Value Gross Fair Value Gross Fixed maturities: U.S. treasury and agency obligations $ 39,570 $ (233 ) $ — $ — $ 39,570 $ (233 ) Obligations of states and political subdivisions 46,861 (369 ) 670 (10 ) 47,531 (379 ) Mortgage-backed securities 52,780 (541 ) 298 (17 ) 53,078 (558 ) Asset-backed securities 62,737 (493 ) 23,937 (90 ) 86,674 (583 ) Commercial mortgage-backed securities 94,366 (1,090 ) 69,747 (657 ) 164,113 (1,747 ) Corporate bonds 171,621 (2,731 ) 9,218 (117 ) 180,839 (2,848 ) Foreign corporate bonds 76,036 (673 ) — — 76,036 (673 ) Total fixed maturities 543,971 (6,130 ) 103,870 (891 ) 647,841 (7,021 ) Common stock 57,439 (2,403 ) — — 57,439 (2,403 ) Total $ 601,410 $ (8,533 ) $ 103,870 $ (891 ) $ 705,280 $ (9,424 ) (1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2015: Less than 12 months 12 months or longer (1) Total (Dollars in thousands) Fair Value Gross Fair Gross Fair Value Gross Fixed maturities: U.S. treasury and agency obligations $ 79,496 $ (321 ) $ — $ — $ 79,496 $ (321 ) Obligations of states and political subdivisions 49,708 (373 ) 7,732 (84 ) 57,440 (457 ) Mortgage-backed securities 63,759 (743 ) — — 63,759 (743 ) Asset-backed securities 203,381 (1,404 ) 4,843 (17 ) 208,224 (1,421 ) Commercial mortgage-backed securities 118,813 (2,005 ) 21,577 (347 ) 140,390 (2,352 ) Corporate bonds 211,364 (3,269 ) 2,120 (25 ) 213,484 (3,294 ) Foreign corporate bonds 63,860 (697 ) 5,129 (42 ) 68,989 (739 ) Total fixed maturities 790,381 (8,812 ) 41,401 (515 ) 831,782 (9,327 ) Common stock 36,798 (5,960 ) — — 36,798 (5,960 ) Total $ 827,179 $ (14,772 ) $ 41,401 $ (515 ) $ 868,580 $ (15,287 ) (1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. |
Schedule of Other Than Temporary Impairments on Investments | The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the years ended December 31, 2016, 2015, and 2014: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Fixed maturities: OTTI losses, gross $ (259 ) $ (24 ) $ (31 ) Portion of loss recognized in other comprehensive income (pre-tax) — — — Net impairment losses on fixed maturities recognized in earnings (259 ) (24 ) (31 ) Equity securities (6,474 ) (7,311 ) (470 ) Total $ (6,733 ) $ (7,335 ) $ (501 ) |
Schedule of Credit Losses Recognized in Earnings | The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company as of December 31, 2016, 2015, and 2014 for which a portion of the OTTI loss was recognized in other comprehensive income. Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Balance at beginning of period $ 31 $ 50 $ 54 Additions where no OTTI was previously recorded — — — Additions where an OTTI was previously recorded — — — Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery — — — Reductions reflecting increases in expected cash flows to be collected — — — Reductions for securities sold during the period — (19 ) (4 ) Balance at end of period $ 31 $ 31 $ 50 |
Schedule of Accumulated Other Comprehensive Income, Net of Tax | Accumulated other comprehensive income, net of tax, as of December 31, 2016 and 2015 was as follows: (Dollars in thousands) December 31, 2016 2015 Net unrealized gains (losses) from: Fixed maturities $ (1,308 ) $ (2,184 ) Common stock 1,042 10,158 Deferred taxes (352 ) (3,896 ) Accumulated other comprehensive income (loss), net of tax $ (618 ) $ 4,078 |
Changes in Accumulated Other Comprehensive Income | The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the years ended December 31, 2016 and 2015: Year Ended December 31, 2016 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ 4,200 $ (122 ) $ 4,078 Other comprehensive income (loss) before reclassification 10,374 (261 ) 10,113 Amounts reclassified from accumulated other comprehensive income (loss) (15,128 ) 319 (14,809 ) Other comprehensive income (loss) (4,754 ) 58 (4,696 ) Ending balance $ (554) $ (64 ) $ (618) Year Ended December 31, 2015 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ 23,647 $ (263 ) $ 23,384 Other comprehensive income (loss) before reclassification (17,065 ) (256 ) (17,321 ) Amounts reclassified from accumulated other comprehensive income (loss) (2,382 ) 397 (1,985 ) Other comprehensive income (loss) (19,447 ) 141 (19,306 ) Ending balance $ 4,200 $ (122 ) $ 4,078 |
Reclassifications Out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive income for the years ended December 31, 2016 and 2015 were as follows: Amounts Reclassified from Years Ended December 31, (Dollars in thousands) Details about Accumulated Other Comprehensive Income Components Affected Line Item in the 2016 2015 Unrealized gains and losses on available for sale securities Other net realized investment (gains) $ (30,055 ) $ (11,559 ) Other than temporary impairment losses on investments 6,733 7,335 Total before tax (23,322 ) (4,224 ) Income tax expense 8,194 1,842 Unrealized gains and losses on available for sale securities, net of tax $ (15,128 ) $ (2,382 ) Foreign currency items Other net realized investment losses $ 491 $ 610 Income tax (benefit) (172 ) (213 ) Foreign currency items, net of tax $ 319 $ 397 Total reclassifications Total reclassifications, net of tax $ (14,809 ) $ (1,985 ) |
Components of Net Realized Investment Gains (Losses) | The components of net realized investment gains (losses) for the years ended December 31, 2016, 2015, and 2014 were as follows: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Fixed maturities: Gross realized gains $ 2,947 $ 3,565 $ 2,843 Gross realized losses (691 ) (2,180 ) (703 ) Net realized gains 2,256 1,385 2,140 Common stock: Gross realized gains 28,785 10,379 55,907 Gross realized losses (8,210 ) (8,246 ) (1,351 ) Net realized gains 20,575 2,133 54,556 Preferred stock: Gross realized gains — 96 — Gross realized losses — — — Net realized gains — 96 — Derivatives: Gross realized gains 3,733 — — Gross realized losses (4,843 ) (6,988 ) (20,836 ) Net realized gains (losses) (1) (1,110 ) (6,988 ) (20,836 ) Total net realized investment gains (losses) $ 21,721 $ (3,374 ) $ 35,860 (1) Includes $4.8 million, $5.4 million, and $5.5 million of periodic net interest settlements related to the derivatives for the years ended December 31, 2016, 2015, and 2014, respectively. |
Proceeds from Sales of Available-for-Sale Securities | The proceeds from sales of available for sale securities resulting in net realized investment gains (losses) for the years ended December 31, 2016, 2015, and 2014 were as follows: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Fixed maturities $ 381,389 $ 647,404 $ 415,739 Equity securities 111,156 39,723 191,765 Preferred stock — 1,540 — |
Schedule of Investment Income | The sources of net investment income for the years ended December 31, 2016, 2015, and 2014 were as follows: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Fixed maturities $ 30,337 $ 32,091 $ 26,788 Equity securities 3,302 3,125 5,484 Cash and cash equivalents 217 82 61 Other invested assets 5,295 2,620 87 Total investment income 39,151 37,918 32,420 Investment expense (1) (5,168 ) (3,309 ) (3,599 ) Net investment income $ 33,983 $ 34,609 $ 28,821 (1) Investment expense for the year ended December 31, 2016 includes $1.5 million in upfront fees necessary to enter into a new investment. See Note 9 for additional information on the Company’s $40 million commitment related to this new investment. |
Schedule of Total Investment Return | The Company’s total investment return on a pre-tax basis for the years ended December 31, 2016, 2015, and 2014 were as follows: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Net investment income $ 33,983 $ 34,609 $ 28,821 Net realized investment gains(losses) 21,721 (3,374 ) 35,860 Change in unrealized holding gains and losses (8,240 ) (25,673 ) (45,861 ) Net realized and unrealized investment returns 13,481 (29,047 ) (10,001 ) Total investment return $ 47,464 $ 5,562 $ 18,820 Total investment return % 3.1 % 0.3 % 1.2 % Average investment portfolio $ 1,507,184 $ 1,752,785 $ 1,533,104 |
Summary of Insurance Enhanced Municipal Bonds Backed by Financial Guarantors | A summary of the Company’s insurance enhanced municipal bonds that are backed by financial guarantors, including the pre-refunded bonds that are escrowed in U.S. government obligations, as of December 31, 2016, is as follows: (Dollars in thousands) Financial Guarantor Total Pre-refunded Government Exposure Net of Pre-refunded Securities Ambac Financial Group $ 1,494 $ 450 $ $ 1,044 Municipal Bond Insurance Association 2,657 — — 2,657 Gov’t National Housing Association 495 — 495 — Total backed by financial guarantors 4,646 450 495 3,701 Other credit enhanced municipal bonds 5,164 5,164 — — Total $ 9,810 $ 5,614 $ 495 $ 3,701 |
Summary of Estimated Fair Values of Bonds Held on Deposit | The fair values were as follows as of December 31, 2016 and 2015: Estimated Fair Value (Dollars in thousands) December 31, December 31, On deposit with governmental authorities $ 29,079 $ 38,815 Intercompany trusts held for the benefit of U.S. policyholders 351,002 375,827 Held in trust pursuant to third party requirements 88,178 66,544 Letter of credit held for third party requirements 4,871 5,598 Securities held as collateral for borrowing arrangements (1) 85,939 95,647 Total $ 559,069 $ 582,431 (1) Amount required to collateralize margin borrowing facilities. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summarized Information of Location and Gross Amount of Derivatives' Fair Value in Consolidated Balance Sheets | The following table summarizes information on the location and the gross amount of the derivatives’ fair value on the consolidated balance sheets as of December 31, 2016 and 2015: (Dollars in thousands) Derivatives Not Designated as Hedging Instruments under ASC 815 Balance Sheet December 31, 2016 December 31, 2015 Notional Fair Notional Fair Interest rate swap agreements Other liabilities $ 200,000 $ (11,524 ) $ 200,000 $ (15,256 ) |
Summary of Net Gains (Losses) Included in Consolidated Statements of Operations for Changes in Fair Value of Derivatives and Periodic Net Interest Settlements Under Derivatives | The following table summarizes the net gains (losses) 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 years ended December 31, 2016, 2015, and 2014: (Dollars in thousands) Consolidated Statements of Years Ended December 31, 2016 2015 2014 Interest rate swap agreements Net realized investment gains (losses) $ (1,110 ) $ (6,988 ) $ (20,836 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis | The following table presents information about the Company’s invested assets and derivative instruments measured at fair value on a recurring basis as of December 31, 2016 and 2015, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. As of December 31, 2016 Fair Value Measurements (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 72,047 $ — $ — $ 72,047 Obligations of states and political subdivisions — 156,446 — 156,446 Mortgage-backed securities — 88,468 — 88,468 Commercial mortgage-backed securities — 183,192 — 183,192 Asset-backed securities — 233,991 — 233,991 Corporate bonds — 380,027 — 380,027 Foreign corporate bonds — 125,860 — 125,860 Total fixed maturities 72,047 1,167,984 — 1,240,031 Common stock 120,557 — — 120,557 Total assets measured at fair value (1) $ 192,604 $ 1,167,984 $ — $ 1,360,588 Liabilities: Derivative instruments $ — $ 11,524 $ — $ 11,524 Total liabilities measured at fair value $ — $ 11,524 $ — $ 11,524 (1) Excluded from the table above are limited partnerships of $66.1 million at December 31, 2016 whose fair value is based on net asset value as a practical expedient. As of December 31, 2015 Fair Value Measurements (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 101,264 $ 5,858 $ — $ 107,122 Obligations of states and political subdivisions — 205,240 — 205,240 Mortgage-backed securities — 159,123 — 159,123 Commercial mortgage-backed securities — 140,390 — 140,390 Asset-backed securities — 260,022 — 260,022 Corporate bonds — 332,111 — 332,111 Foreign corporate bonds — 102,141 — 102,141 Total fixed maturities 101,264 1,204,885 — 1,306,149 Common stock 110,315 — — 110,315 Total assets measured at fair value (1) $ 211,579 $ 1,204,885 $ — $ 1,416,464 Liabilities: Derivative instruments $ — $ 15,256 $ — $ 15,256 Total liabilities measured at fair value $ — $ 15,256 $ — $ 15,256 (1) Excluded from the table above are limited partnerships of $32.6 million at December 31, 2015 whose fair value is based on net asset value as a practical expedient. |
Current Fair Value of Debt | For the Company’s material debt arrangements, the current fair value of the Company’s debt at December 31, 2016 and 2015 was as follows: December 31, 2016 December 31, 2015 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Margin Borrowing Facilities $ 66,646 $ 66,646 $ 75,646 $ 75,646 7.75% Subordinated Notes due 2045 (1) 96,497 95,697 96,388 91,748 Total $ 163,143 $ 162,343 $ 172,034 $ 167,394 (1) As of December 31, 2016 and 2015, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.5 million and $3.6 million, respectively. |
Changes in Level 3 Investments Measured at Fair Value on a Recurring Basis | The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the year ended December 31, 2016 and 2015: Years Ended (Dollars in thousands) 2016 2015 Beginning balance $ — $ — Total gains (realized / unrealized): Amortization of bond premium and discount, net 75 — Included in realized gains (losses) 486 — Purchases 27,303 — Sales (27,864 ) — Ending balance $ — $ — |
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 December 31, 2016 and 2015. December 31, 2016 December 31, 2015 (Dollars in thousands) Fair Future Fair Future Real Estate Fund, LP (1) $ — $ — $ — $ — European Non-Performing Loan Fund, LP (2) 32,922 15,714 32,592 20,014 Private Middle Market Loan Fund, LP (3) 33,199 9,054 — — Total $ 66,121 $ 24,768 $ 32,592 $ 20,014 (1) This limited partnership invests in real estate assets through a combination of direct or indirect investments in partnerships, limited liability companies, mortgage loans, and lines of credit. 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. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company continues to hold an investment in this limited partnership and has written the fair value down to zero. (2) 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. Based on the terms of the partnership agreement, the Company anticipates its interest in this partnership to be redeemed by 2020. (3) This limited partnership provides financing for 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. Based on the terms of the investment management agreement, the Company anticipates its interest to be redeemed no later than 2024. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill, by segment, for the years ended December 31, 2016 and 2015 are as follows: (Dollars in thousands) Commercial Personal Lines Total Balance at December 31, 2014 $ 4,820 $ — $ 4,820 Acquisition of American Reliable on January 1, 2015 — 1,701 1,701 Balance at December 31, 2015 and 2016 $ 4,820 $ 1,701 $ 6,521 |
Intangible assets | The following table presents details of the Company’s intangible assets as of December 31, 2016: (Dollars in thousands) Description Useful Life Cost Accumulated Net Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 2,369 2,931 Agent relationships 10 years 900 179 721 Trade names 7 years 600 173 427 $ 25,800 $ 2,721 $ 23,079 The following table presents details of the Company’s intangible assets as of December 31, 2015: (Dollars in thousands) Description Useful Life Cost Accumulated Net Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 2,017 3,283 Agent relationships 10 years 900 90 810 Trade names 7 years 600 86 514 Value of business added (“VOBA”) < 1 year 25,500 25,500 — $ 51,300 $ 27,693 $ 23,607 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Components of Reinsurance Balances | The Company had the following reinsurance balances as of December 31, 2016 and 2015: (Dollars in thousands) December 31, December 31, Reinsurance receivables, net $ 143,774 $ 115,594 Collateral securing reinsurance receivables (13,865 ) (6,445 ) Reinsurance receivables, net of collateral $ 129,909 $ 109,149 Allowance for uncollectible reinsurance receivables $ 8,040 $ 9,675 Prepaid reinsurance premiums 42,583 44,363 |
Unsecured Reinsurance Receivable that Exceeded Three Percent of Shareholders' Equity | Unsecured reinsurance receivables include amounts receivable for paid and unpaid losses and loss adjustment expenses, less amounts secured by collateral. (Dollars in thousands) Reinsurance Receivables A.M. Best Ratings Munich Re America Corporation $ 51,178 A+ |
Effect of Reinsurance on Premiums Written and Earned | The effect of reinsurance on premiums written and earned is as follows: (Dollars in thousands) Written Earned For the year ended December 31, 2016: Direct business $ 468,046 $ 466,750 Reinsurance assumed 97,799 98,267 Reinsurance ceded (1) (94,905 ) (96,552 ) Net premiums $ 470,940 $ 468,465 For the year ended December 31, 2015: Direct business $ 458,185 $ 452,441 Reinsurance assumed 132,048 144,554 Reinsurance ceded (2) (88,989 ) (92,852 ) Net premiums $ 501,244 $ 504,143 For the year ended December 31, 2014: Direct business $ 229,978 $ 228,652 Reinsurance assumed 61,275 58,414 Reinsurance ceded (18,072 ) (18,547 ) Net premiums $ 273,181 $ 268,519 (1) Includes ceded written premiums and ceded earned premiums of $35.3 million and $43.2 million, respectively, to American Bankers Insurance Company. (2) Includes ceded written premiums and ceded earned premiums of $55.8 million and $59.5 million, respectively, to American Bankers Insurance Company. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income before Income Taxes from its Non-U.S. Subsidiaries and U.S. Subsidiaries | The Company’s income before income taxes from its non-U.S. subsidiaries and U.S. subsidiaries, including the results of the quota share and stop-loss agreements between Global Indemnity Reinsurance and the Insurance Operations, for the years ended December 31, 2016, 2015, and 2014 were as follows: Year Ended December 31, 2016: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 201,726 $ 506,061 $ (141,942 ) $ 565,845 Net premiums written $ 201,690 $ 269,250 $ — $ 470,940 Net premiums earned $ 212,325 $ 256,140 $ — $ 468,465 Net investment income 48,807 19,341 (34,165 ) 33,983 Net realized investment gains (89 ) 21,810 — 21,721 Other income (loss) (224 ) 10,569 — 10,345 Total revenues 260,819 307,860 (34,165 ) 534,514 Losses and Expenses: Net losses and loss adjustment expenses 95,812 168,191 — 264,003 Acquisition costs and other underwriting expenses 94,749 101,901 — 196,650 Corporate and other operating expenses 9,035 8,303 — 17,338 Interest expense 8,312 34,758 (34,165 ) 8,905 Income (loss) before income taxes $ 52,911 $ (5,293 ) $ — $ 47,618 Year Ended December 31, 2015: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 345,392 $ 540,500 $ (295,659 ) $ 590,233 Net premiums written $ 345,342 $ 155,902 $ — $ 501,244 Net premiums earned $ 283,448 $ 220,695 $ — $ 504,143 Net investment income 44,534 18,011 (27,936 ) 34,609 Net realized investment losses (1,039 ) (2,335 ) — (3,374 ) Other income (loss) (93 ) 3,493 — 3,400 Total revenues 326,850 239,864 (27,936 ) 538,778 Losses and Expenses: Net losses and loss adjustment expenses 141,444 133,924 — 275,368 Acquisition costs and other underwriting expenses 122,999 78,304 — 201,303 Corporate and other operating expenses 5,928 18,520 — 24,448 Interest expense 4,492 28,357 (27,936 ) 4,913 Income (loss) before income taxes $ 51,987 $ (19,241 ) $ — $ 32,746 Year Ended December 31, 2014: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 173,563 $ 229,979 $ (112,289 ) $ 291,253 Net premiums written $ 172,504 $ 100,677 $ — $ 273,181 Net premiums earned $ 168,743 $ 99,776 $ — $ 268,519 Net investment income 31,420 16,715 (19,314 ) 28,821 Net realized investment gains 926 34,934 — 35,860 Other income (loss) (65 ) 620 — 555 Total revenues 201,024 152,045 (19,314 ) 333,755 Losses and Expenses: Net losses and loss adjustment expenses 62,669 74,892 — 137,561 Acquisition costs and other underwriting expenses 70,479 39,140 — 109,619 Corporate and other operating expenses 5,243 9,316 — 14,559 Interest expense 852 19,284 (19,314 ) 822 Income (loss) before income taxes $ 61,781 $ 9,413 $ — $ 71,194 |
Components of Income Tax Expense (Benefit) | The following table summarizes the components of income tax expense (benefit): Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Current income tax expense (benefit): Non-resident withholding $ — $ — $ 6,250 Foreign 330 263 129 U.S. Federal 147 (1,785 ) 2,787 Total current income tax expense (benefit) 477 (1,522 ) 9,166 Deferred income tax benefit: U.S. Federal (2,727 ) (7,201 ) (828 ) Total deferred income tax benefit (2,727 ) (7,201 ) (828 ) Total income tax expense (benefit) $ (2,250 ) $ (8,723 ) $ 8,338 |
Differences in Tax and Estimated Tax Provisions 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: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Amount % of Pre- Tax Income Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average $ (1,496 ) (3.1 %) $ (6,434 ) (19.6 %) $ 3,465 4.9 % Adjustments: Non-resident withholding — — — — 6,250 8.8 Tax exempt interest (394 ) (0.8 ) (441 ) (1.3 ) (472 ) (0.7 ) Dividend exclusion (617 ) (1.3 ) (784 ) (2.4 ) (1,340 ) (1.9 ) Other 257 0.5 (1,064 ) (3.3 ) 435 0.6 Actual taxes on continuing operations $ (2,250 ) (4.7 %) $ (8,723 ) (26.6 %) $ 8,338 11.7 % |
Tax Effects of Temporary Differences That Give Rise to Significant Portions of Net Deferred Tax Assets | The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at December 31, 2016 and 2015 are presented below: (Dollars in thousands) 2016 2015 Deferred tax assets: Discounted unpaid losses and loss adjustment expenses $ 7,015 $ 8,222 Unearned premiums 8,802 7,884 Section 163(j) carryforward 8,075 3,135 Alternative minimum tax credit carryover 10,957 10,868 Net operating loss carryforward 3,205 1,934 Partnership K1 basis differences 238 245 Capital gain on derivative instruments 4,033 5,340 Investment impairments 3,419 2,635 Stock options 2,820 2,635 Stat-to-GAAP reinsurance reserve 1,337 1,364 Intercompany transfers 808 1,612 Depreciation and amortization — 36 Other 4,986 4,545 Total deferred tax assets 55,695 50,455 Deferred tax liabilities: Purchase accounting adjustment for American Reliable 6,095 6,095 Intangible assets 3,942 3,893 Unrealized gain on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income 352 3,896 Investment basis differences 484 1,034 Deferred acquisition costs 2,941 642 Depreciation and amortization 119 — Other 805 208 Total deferred tax liabilities 14,738 15,768 Total net deferred tax assets $ 40,957 $ 34,687 |
Liability for Unpaid Losses a47
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Balance at beginning of period $ 680,047 $ 675,472 $ 779,466 Less: Ceded reinsurance receivables 108,130 123,201 192,491 Net balance at beginning of period 571,917 552,271 586,975 Purchased reserves, gross 2,007 89,489 — Less: Purchased reserves ceded (45 ) 12,800 — Purchase reserves, net of third party reinsurance 2,052 76,689 — Incurred losses and loss adjustment expenses related to: Current year 321,255 310,066 153,994 Prior years (57,252 ) (34,698 ) (16,433 ) Total incurred losses and loss adjustment expenses 264,003 275,368 137,561 Paid losses and loss adjustment expenses related to: Current year 177,006 164,058 55,485 Prior years 140,363 168,353 116,780 Total paid losses and loss adjustment expenses 317,369 332,411 172,265 Net balance at end of period 520,603 571,917 552,271 Plus: Ceded reinsurance receivables 130,439 108,130 123,201 Balance at end of period $ 651,042 $ 680,047 $ 675,472 |
Gross Reserves for Asbestos and Environmental Losses | The following table shows the Company’s gross reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Gross reserve for A&E losses and loss adjustment expenses—beginning of period $ 53,824 $ 56,535 $ 50,155 Plus: Incurred losses and loss adjustment expenses—case reserves (669 ) 2,666 4,333 Plus: Incurred losses and loss adjustment expenses—IBNR 2,064 (2,663 ) 7,340 Less: Payments 3,300 2,714 5,293 Gross reserves for A&E losses and loss adjustment expenses—end of period $ 51,919 $ 53,824 $ 56,535 |
Net Reserves for Asbestos and Environmental Losses | The following table shows the Company’s net reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Net reserve for A&E losses and loss adjustment expenses—beginning of period $ 30,529 $ 31,185 $ 23,038 Plus: Incurred losses and loss adjustment expenses—case reserves (125 ) 395 2,754 Plus: Incurred losses and loss adjustment expenses—IBNR 631 (394 ) 8,241 Less: Payments 1,145 657 2,848 Net reserves for A&E losses and loss adjustment expenses—end of period $ 29,890 $ 30,529 $ 31,185 |
Incurred Claims Development | Commercial Lines—Property (Dollars in thousands) Incurred Claims and Allocated Claims Net of Reinsurance For the Years Ended December 31, As of December 31, 2016 Accident Year 2014 2015 2016 IBNR (1) Cumulative Number (unaudited) (unaudited) 2014 $ 64,459 $ 65,529 $ 65,375 $ 3,247 6,388 2015 64,693 65,880 5,817 4,864 2016 63,632 11,855 4,047 Total $ 194,887 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Commercial Lines—Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2016 Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2007 $ 222,751 $ 238,374 $ 240,974 $ 229,255 $ 219,709 $ 221,276 $ 215,716 $ 210,327 $ 208,412 $ 205,257 $ 11,119 8,690 2008 138,417 170,855 160,325 149,564 148,019 146,142 138,558 134,352 129,740 10,002 6,065 2009 93,748 96,956 104,518 104,803 104,392 96,206 92,666 89,939 9,537 3,774 2010 79,188 101,830 102,252 101,113 94,484 90,683 83,997 11,891 3,287 2011 115,441 117,602 117,288 115,193 109,420 96,761 18,682 3,478 2012 61,340 65,911 65,637 63,123 54,674 14,766 2,140 2013 63,807 68,089 66,855 65,220 14,390 2,278 2014 61,325 58,873 56,620 19,267 2,089 2015 55,628 55,141 24,547 1,715 2016 52,228 37,773 1,247 Total $ 889,577 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Personal Lines—Property (Dollars in thousands) Incurred Claims and Allocated Claims For the Years Ended As of December 31, 2016 Accident Year 2015 2016 IBNR (1) Cumulative Number (unaudited) 2015 $ 139,508 $ 137,611 $ 3,299 16,182 2016 144,916 14,179 15,724 Total $ 282,527 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Personal Lines—Casualty (Dollars in thousands) Incurred Claims and Allocated Claims For the Years Ended December 31, As of December 31, 2016 Accident Year 2015 2016 IBNR (1) Cumulative Number (unaudited) 2015 $ 20,566 $ 21,986 $ 8,243 1,057 2016 23,390 16,465 745 Total $ 45,376 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Reinsurance Lines—Property (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 IBNR (1) Cumulative Number Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 $ 13,486 $ 15,041 $ 14,091 $ 14,562 $ 14,562 $ 14,562 $ 14,562 $ 248 — 2011 30,963 28,547 26,916 25,994 24,994 24,912 1,194 — 2012 10,388 10,578 9,279 8,579 8,497 616 — 2013 15,153 9,948 8,197 6,698 1,008 — 2014 21,787 18,861 14,139 1,979 — 2015 19,877 16,738 7,364 — 2016 23,646 17,739 — Total $ 109,192 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Reinsurance Lines – Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2007 $ 3,645 $ 6,396 $ 6,359 $ 6,351 $ 6,352 $ 4,705 $ 4,931 $ 4,931 $ 3,894 $ 3,944 $ 529 — 2008 8,906 8,758 8,988 8,997 10,167 10,340 10,340 9,435 9,835 476 — 2009 20,706 23,818 25,444 30,533 30,850 31,340 31,419 31,453 391 — 2010 41,831 53,279 57,916 62,628 61,062 61,792 60,701 2,755 — 2011 45,726 48,846 44,692 47,980 46,510 43,657 2,860 — 2012 15,865 15,624 17,123 17,579 17,360 1,018 — 2013 1,224 1,262 1,172 1,013 927 — 2014 1,988 2,095 2,060 1,995 — 2015 2,908 2,911 2,782 — 2016 3,626 3,627 — Total $ 176,560 (1) Incurred-but-not-reported liabilities plus expected development on reported claims |
Cumulative Paid Claims Development | Commercial Lines—Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims For the Years Ended December 31, Accident Year 2014 2015 2016 (unaudited) (unaudited) 2014 $ 45,771 $ 59,049 $ 61,085 2015 41,972 58,134 2016 39,994 Total 159,213 All outstanding liabilities before 2014, net of reinsurance 5,378 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 41,052 Commercial Lines—Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2007 $ 14,250 $ 46,819 $ 96,489 $ 136,203 $ 160,712 $ 174,488 $ 184,028 $ 188,162 $ 190,102 $ 191,564 2008 7,844 34,172 65,700 86,889 100,369 110,145 114,546 116,094 117,639 2009 5,564 19,154 37,653 53,738 65,721 71,108 73,831 76,413 2010 5,503 19,926 34,659 50,520 58,913 64,693 66,593 2011 5,451 21,325 41,282 56,562 64,885 72,247 2012 3,500 11,884 22,456 30,883 35,776 2013 6,400 17,881 28,955 37,657 2014 3,968 14,846 25,133 2015 2,958 13,922 2016 3,847 Total $ 640,791 All outstanding liabilities before 2007, net of reinsurance 62,487 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 311,274 Personal Lines—Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment For the Years Ended December 31, Accident Year 2015 2016 (unaudited) 2015 $ 109,953 $ 133,093 2016 121,548 Total 254,641 All outstanding liabilities before 2015, net of reinsurance 2,538 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 30,424 Personal Lines —Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment For the Years Ended December 31, Accident Year 2015 2016 (unaudited) 2015 $ 3,817 $ 9,418 2016 3,795 Total 13,213 All outstanding liabilities before 2015, net of reinsurance 11,338 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 43,500 Reinsurance Lines—Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 $ 456 $ 11,678 $ 12,201 $ 14,043 $ 14,199 $ 14,231 $ 14,249 2011 12,044 19,274 20,698 22,060 22,426 22,771 2012 1,127 5,481 7,221 7,648 7,527 2013 723 4,008 5,835 5,111 2014 2,243 9,035 10,460 2015 742 5,163 2016 2,071 Total 67,352 All outstanding liabilities before 2010, net of reinsurance 181 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 42,021 Reinsurance Lines—Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2007 $ — $ 78 $ 852 $ 1,811 $ 1,900 $ 2,452 $ 2,674 $ 2,678 $ 2,727 $ 2,733 2008 627 1,955 5,149 5,648 6,832 8,713 8,875 8,919 2009 1,986 9,759 11,064 12,597 13,652 15,104 30,141 31,019 2010 10,185 21,447 30,754 36,090 39,123 55,315 55,848 2011 7,968 20,072 28,495 36,020 38,907 39,815 2012 5,312 9,435 11,658 15,534 15,696 2013 123 50 62 65 2014 88 47 50 2015 107 128 2016 — Total $ 154,273 All outstanding liabilities before 2007, net of reinsurance — Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 22,287 |
Supplementary Information about Average Historical Claims | The following is supplementary information about average historical claims duration as of December 31, 2016: Average Annual Percentage Payout of Incurred Net of Reinsurance (Unaudited) Year 1 2 3 Commercial Lines—Property 65.5 % 22.4 % 3.1 % The following is supplementary information about average historical claims duration as of December 31, 2016: Average Annual Percentage Payout of Incurred Claims by Age, Net of Year 1 2 3 4 5 6 7 8 9 10 Commercial Lines—Casualty 6.7 % 17.4 % 20.2 % 16.7 % 10.5 % 6.9 % 3.3 % 2.0 % 1.1 % 0.7 % The following is supplementary information about average historical claims duration as of December 31, 2016. Average Annual Percentage Payout of Year 1 2 Personal Lines—Property 81.9 % 16.8 % The following is supplementary information about average historical claims duration as of December 31, 2016: Average Annual Percentage Payout of Incurred Year 1 2 Personal Lines—Casualty 16.8 % 25.5 % The following is supplementary information about average historical claims duration as of December 31, 2016: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 Reinsurance Lines—Property 14.9 % 46.8 % 13.4 % 3.1 % 0.4 % 0.8 % 0.1 % The following is supplementary information about average historical claims duration as of December 31, 2016: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 2 3 4 5 6 7 8 9 10 Reinsurance Lines—Casualty 9.2 % 10.5 % 10.8 % 15.7 % 3.9 % 11.9 % 18.4 % 1.5 % 0.8 % 0.1 % |
Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and Loss Adjustment Expenses in Consolidated Balance Sheets | The reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and loss adjustment expenses in the consolidated balance sheets as of December 31, 2016 is as follows: Net outstanding liabilities Commercial Lines – Property $ 41,052 Commercial Lines – Casualty 311,274 Personal Lines – Property 30,424 Personal Lines – Casualty 43,500 Reinsurance Lines – Property 42,021 Reinsurance Lines – Casualty 22,287 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance 490,558 Reinsurance recoverable on unpaid claims Commercial Lines – Property $ 6,439 Commercial Lines – Casualty 76,956 Personal Lines – Property 39,708 Personal Lines – Casualty 5,352 Reinsurance Lines – Property — Reinsurance Lines – Casualty 237 Total reinsurance recoverable on unpaid claims 128,692 Other outstanding liabilities Commercial Lines Ceded Allowance 8,040 Unallocated claims adjustment expenses 17,795 Purchase accounting adjustment (2,000 ) Loss Clearing (910 ) Personal Lines Fronted business ceded to Assurant 3,748 Unallocated claims adjustment expenses 4,685 Loss Clearing (68 ) Reinsurance Lines Unallocated claims adjustment expenses 646 Other (144 ) Total other outstanding liabilities 31,792 Total gross liability for unpaid losses and loss adjustment expenses $ 651,042 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Outstanding Debt | The Company’s outstanding debt consisted of the following at December 31, 2016 and 2015: December 31, (Dollars in thousands) 2016 2015 Margin Borrowing Facilities $ 66,646 $ 75,646 7.75% Subordinated Notes due 2045 96,497 96,388 Total $ 163,143 $ 172,034 |
Amounts Recorded for the 7.75% Subordinated Notes | The following table represents the amounts recorded for the 7.75% subordinated notes as of December 31, 2016 and 2015: December 31, 2016 Outstanding Unamortized Debt Net Carrying 7.75% Subordinated Notes due 2045 $ 100,000 $ (3,503 ) $ 96,497 December 31, 2015 Outstanding Unamortized Debt Net Carrying 7.75% Subordinated Notes due 2045 $ 100,000 $ (3,612 ) $ 96,388 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Information with Respect to Ordinary Shares that were Surrendered, Repurchased or Redeemed | The following table provides information with respect to the A ordinary shares that were surrendered, repurchased, or redeemed in 2016: Period (1) Total Number of Shares Purchased or Average Price Paid Per Share Total Number of Plan or Program Approximate Dollar A ordinary shares: January 1 – 31, 2016 12,410 (2) $ 29.02 — — February 1 – 29, 2016 15,093 (2) $ 28.25 — — May 1 – 31, 2016 596 (2) $ 30.56 — — Total 28,099 $ 28.64 — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. The following table provides information with respect to ordinary shares that were surrendered, repurchased, or redeemed in 2015: Period (1) Total Number of Shares Purchased or Average Price Paid Per Share Total Number of Plan or Program Approximate Dollar A ordinary shares: January 1 – 31, 2015 9,009 (2) $ 28.37 — — March 1 – 31, 2015 2,290 (2) $ 26.98 — — May 1 – 31, 2015 596 (2) $ 27.01 — — November 1 – 30, 2015 8,260,870 (3) $ 23.00 — — Total 8,272,765 $ 23.01 — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. (3) Of these shares, 7,928,004 shares were converted from B ordinary shares to A ordinary shares. Of the 7,928,004 converted shares, 4,555,061 were redeemed and 3,372,943 went into a liquidating trust. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Hiscox Insurance Company (Bermuda) Ltd. | |
Estimated Earned Premium and Incurred Losses, and Net Balances Due | The Company estimated that the following earned premium and incurred losses related to these agreements have been assumed by Global Indemnity Reinsurance from Hiscox Bermuda: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Assumed earned premium $ 27 $ 2,266 $ 6,383 Assumed losses and loss adjustment expenses (527 ) 509 763 Net payable balances due from Global Indemnity Reinsurance under this agreement are as follows: As of December 31. (Dollars in thousands) 2016 2015 Net payable balance $ (107 ) $ (110 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Future Minimum Cash Payments Under Non-cancelable Operating Leases | At December 31, 2016, future minimum cash payments under non-cancelable operating leases were as follows: (Dollars in thousands) 2017 $ 3,227 2018 3,185 2019 2,157 2020 117 Total $ 8,686 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Award Activity for Stock Options Granted and Weighted Average Exercise Price Per Share | Award activity for stock options granted under the Plan and the weighted average exercise price per share are summarized as follows: Time-Based Options Performance- Based Options Total Weighted Average Exercise Price Per Share Options outstanding at January 1, 2014 412,500 — 412,500 $ 18.62 Options issued 325,000 — 325,000 $ 31.74 Options forfeited (125,000 ) — (125,000 ) $ 19.60 Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2014 612,500 — 612,500 $ 25.38 Options issued — 200,000 200,000 $ 28.37 Options forfeited — — — — Options exercised — — — — Options expired (12,500 ) — (12,500 ) $ 37.70 Options purchased by the Company — — — — Options outstanding at December 31, 2015 600,000 200,000 800,000 $ 25.94 Options issued — — — — Options forfeited — (200,000 ) (200,000 ) $ 28.37 Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2016 600,000 — 600,000 $ 25.13 Options exercisable at December 31, 2016 450,000 — 450,000 $ 22.71 |
Option Intrinsic values | Option intrinsic values, which are the differences between the fair value of $38.21 at December 31, 2016 and the strike price of the option, are as follows: Number of Shares Weighted Average Strike Price Intrinsic Outstanding 600,000 $ 25.13 $ 7.9 million Exercisable 450,000 $ 22.71 (1) $ 7.0 million Exercised (1) — — — (1) The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. |
Options Exercisable | The options exercisable at December 31, 2016 include the following: Option Price Number of options $17.87 300,000 $32.38 150,000 Options exercisable at December 31, 2016 450,000 |
Significant Assumptions Used to Estimate Fair Value of Stock Options Granted Using Black Scholes Option Pricing Model | There were no options granted under the Plan in 2016. The weighted average fair value of options granted under the Plan was $8.69 and $7.92 in 2015 and 2014, respectively, using a Black-Scholes option-pricing model and the following weighted average assumptions. 2015 2014 Dividend yield 0.0 % 0.0 % Expected volatility 31.59 % 37.7 % Risk-free interest rate 1.7 % 1.7 % Expected option life 5.0 years 6.9 years |
Summary of Range of Exercise Prices of Options Outstanding | The following tables summarize the range of exercise prices of options outstanding at December 31, 2016, 2015, and 2014: Ranges of Exercise Prices Outstanding at December 31, 2016 Weighted Average Per Weighted Average $17.87 – $19.99 300,000 $ 17.87 4.7 years $20.00 – $29.99 — — N/A $30.00 – $37.70 300,000 (1) $ 32.38 7.1 years Total 600,000 (1) Ranges of Exercise Prices Outstanding at December 31, 2015 Weighted Average Per Weighted Average $17.87 – $19.99 300,000 $ 17.87 5.7 years $20.00 – $29.99 200,000 $ 28.37 9.0 years $30.00 – $37.70 300,000 (1) $ 32.38 8.1 years Total 800,000 (1) Ranges of Exercise Prices Outstanding at December 31, 2014 Weighted Average Per Weighted Average $17.87 – $19.99 300,000 $ 17.87 6.7 years $20.00 – $29.99 — — N/A $30.00 – $37.70 312,500 (1) $ 32.59 8.8 years Total 612,500 (1) |
Summary of Restricted Stock Awards Since Inception | The following table summarizes the restricted stock grants since the 2003 inception of the previous share incentive plan. Restricted Stock Awards Year Employees Directors Total Inception through 2013 711,068 405,280 1,116,348 2014 95,694 36,608 132,302 2015 138,507 36,321 174,828 2016 121,346 35,185 156,531 1,066,615 513,394 1,580,009 |
Summary of Non-Vested Restricted Shares Activity | The following table summarizes the non-vested restricted shares activity for the years ended December 31, 2016, 2015, and 2014: Number of Shares Weighted Average Price Per Share Non-vested Restricted Shares at January 1, 2014 98,121 $ 21.48 Shares issued 132,302 $ 25.67 Shares vested (57,017 ) $ 24.29 Shares forfeited (1,131 ) $ 22.13 Non-vested Restricted Shares at December 31, 2014 172,275 $ 23.76 Shares issued 174,828 $ 28.24 Shares vested (70,503 ) $ 25.31 Shares forfeited (16,695 ) $ 24.11 Non-vested Restricted Shares at December 31, 2015 259,905 $ 26.33 Shares issued 156,531 $ 29.44 Shares vested (111,205 ) $ 26.11 Shares forfeited (5,633 ) $ 27.25 Non-vested Restricted Shares at December 31, 2016 299,598 $ 28.02 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share. Years Ended December 31, (Dollars in thousands, except share and per share data) 2016 2015 2014 Net income $ 49,868 $ 41,469 $ 62,856 Basic earnings per share: Weighted average shares outstanding—basic 17,246,717 24,253,657 25,131,811 Net income per share $ 2.89 $ 1.71 $ 2.50 Diluted earnings per share: Weighted average shares outstanding—diluted 17,547,061 24,505,851 25,331,420 Net income per share $ 2.84 $ 1.69 $ 2.48 |
Reconciliation of Weighted Average Shares for Basic and Diluted Earnings Per Share | A reconciliation of weighted average shares for basic earnings per share to weighted average shares for diluted earnings per share is as follows: Years Ended December 31, 2016 2015 2014 Weighted average shares for basic earnings per share 17,246,717 24,253,657 25,131,811 Non-vested restricted stock 187,526 148,669 100,546 Options 112,818 103,525 99,063 Weighted average shares for diluted earnings per share 17,547,061 24,505,851 25,331,420 |
Summarizes Options which Deemed to be Anti-dilutive | The following table summarizes options which are deemed to be anti-dilutive at December 31, 2016: Grant Date Expiration Date Outstanding Strike February 9, 2014 February 9, 2024 300,000 $ 32.38 300,000 |
Statutory Financial Informati54
Statutory Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
United National Insurance Companies | |
Information for United States Insurance Companies & Global Indemnity Reinsurance, Net of Intercompany Eliminations, as Determined in Accordance With SAP and Bermuda | The following is selected information for the Company’s U.S. insurance companies, net of intercompany eliminations, where applicable, as determined in accordance with SAP: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Statutory capital and surplus, as of end of period $ 323,144 $ 318,101 $ 253,362 Statutory net income (loss) 35,618 48,633 36,003 |
Global Indemnity Reinsurance | |
Information for United States Insurance Companies & Global Indemnity Reinsurance, Net of Intercompany Eliminations, as Determined in Accordance With SAP and Bermuda | The following is selected information for Global Indemnity Reinsurance, net of intercompany eliminations, where applicable, as determined in accordance with the Bermuda Insurance Act 1978: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Statutory capital and surplus, as of end of period $ 838,923 $ 713,842 $ 923,862 Statutory net income (loss) 32,768 864 44,593 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Business Segment Information | The following are tabulations of business segment information for the years ended December 31, 2016, 2015, and 2014. Corporate information is included to reconcile segment data to the consolidated financial statements. 2016: (Dollars in thousands) Commercial Personal Reinsurance Operations (2) Total Revenues: Gross premiums written $ 205,120 $ 300,888 (6) $ 59,837 $ 565,845 Net premiums written $ 184,911 $ 226,228 $ 59,801 $ 470,940 Net premiums earned $ 190,727 $ 236,170 $ 41,568 $ 468,465 Other income (loss) 7,472 3,097 (224 ) 10,345 Total revenues 198,199 239,267 41,344 478,810 Losses and Expenses: Net losses and loss adjustment expenses 74,996 174,933 14,074 264,003 Acquisition costs and other underwriting expenses 77,297 (3) 103,289 (4) 16,064 196,650 Income (loss) from segments $ 45,906 $ (38,955 ) $ 11,206 $ 18,157 Unallocated Items: Net investment income 33,983 Net realized investment gains 21,721 Corporate and other operating expenses (17,338 ) Interest expense (8,905 ) Income before income taxes 47,618 Income tax benefit 2,250 Net income 49,868 Total assets $ 804,418 $ 456,654 $ 711,874 (5) $ 1,972,946 (1) Includes business ceded to the Company’s Reinsurance Operations. (2) External business only, excluding business assumed from affiliates. (3) Includes federal excise tax of $523 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $1,181 relating to cessions from Personal Lines to Reinsurance Operations. (5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries (6) Includes $35,334 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. 2015: (Dollars in thousands) Commercial Personal Reinsurance Operations (2) Total Revenues: Gross premiums written $ 214,218 $ 326,282 (6) $ 49,733 $ 590,233 Net premiums written $ 197,526 $ 254,035 $ 49,683 $ 501,244 Net premiums earned $ 199,304 $ 253,048 $ 51,791 $ 504,143 Other income (loss) 621 2,872 (93 ) 3,400 Total revenues 199,925 255,920 51,698 507,543 Losses and Expenses: Net losses and loss adjustment expenses 97,530 163,986 13,852 275,368 Acquisition costs and other underwriting expenses 83,170 (3) 99,140 (4) 18,993 201,303 Income (loss) from segments $ 19,225 $ (7,206 ) $ 18,853 $ 30,872 Unallocated Items: Net investment income 34,609 Net realized investment losses (3,374 ) Corporate and other operating expenses (24,448 ) Interest expense (4,913 ) Income before income taxes 32,746 Income tax benefit 8,723 Net income 41,469 Total assets $ 729,097 $ 510,503 $ 717,694 (5) $ 1,957,294 (1) Includes business ceded to the Company’s Reinsurance Operations. (2) External business only, excluding business assumed from affiliates. (3) Includes federal excise tax of $1,051 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $1,265 relating to cessions from Personal Lines to Reinsurance Operations. (5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries (6) Includes $55,829 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. 2014: (Dollars in thousands) Commercial Reinsurance Operations (2) Total Revenues: Gross premiums written $ 229,978 $ 61,275 (5) $ 291,253 Net premiums written $ 212,965 $ 60,216 $ 273,181 Net premiums earned $ 211,165 $ 57,354 $ 268,519 Other income (loss) 620 (65 ) 555 Total revenue 211,785 57,289 269,074 Losses and Expenses: Net losses and loss adjustment expenses 117,586 19,975 137,561 Acquisition costs and other underwriting expenses 88,983 (3) 20,636 109,619 Income from segments $ 5,216 $ 16,678 $ 21,894 Unallocated items: Net investment income 28,821 Net realized investment gains 35,860 Corporate and other operating expenses (14,559 ) Interest expense (822 ) Income before income taxes 71,194 Income tax expense (8,338 ) Net income $ 62,856 Total assets $ 1,288,763 $ 641,270 (4) $ 1,930,033 (1) Includes business ceded to the Company’s Reinsurance Operations. (2) External business only, excluding business assumed from affiliates. (3) Includes excise tax of $1,114 related to cessions from Commercial Lines to Reinsurance Operations. (4) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries. |
Supplemental Cash Flow Inform56
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Net Federal Income Taxes and Cash Interest Paid | The Company paid the following net federal income taxes and interest for 2016, 2015, and 2014: Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Federal income taxes paid $ 195 $ 104 $ 13,997 Federal income taxes recovered 4,889 2 136 Interest paid 8,771 3,926 804 |
American Reliable Insurance Company | |
Liabilities Assumed on Acquisition | On January 1, 2015, Global Indemnity Group, Inc. acquired 100% of the voting equity interest of American Reliable. In conjunction with the acquisition, fair value of assets acquired and liabilities assumed by the Company were as follows: (Dollars in thousands) Fair value of assets acquired (including goodwill) $ 383,668 Liabilities assumed 283,871 |
Summary of Quarterly Financia57
Summary of Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Quarterly Performance | An unaudited summary of the Company’s 2016 and 2015 quarterly performance is as follows: Year Ended December 31, 2016 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 121,636 $ 117,804 $ 119,553 $ 109,472 Net investment income 9,746 6,562 8,795 8,880 Net realized investment gains (losses) (7,493 ) (3,492 ) 1,928 30,778 Net losses and loss adjustment expenses 64,784 78,111 72,162 48,946 Acquisition costs and other underwriting expenses 52,090 48,542 48,129 47,889 Income (loss) before income taxes 1,953 (11,468 ) 10,598 46,535 Net income (loss) 7,125 (5,165 ) 9,535 38,373 Per share data—Diluted: Net income (loss) $ 0.41 $ (0.30 ) $ 0.54 $ 2.18 Year Ended December 31, 2015 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 127,337 $ 128,877 $ 124,707 $ 123,222 Net investment income 8,241 9,141 8,852 8,375 Net realized investment gains (losses) (2,970 ) 6,532 (10,778 ) 3,842 Net losses and loss adjustment expenses 69,619 79,560 77,691 48,498 Acquisition costs and other underwriting expenses 48,258 50,926 50,934 51,185 Income before income taxes 3,238 9,772 (9,727 ) 29,463 Net income 6,794 11,117 (3,746 ) 27,304 Per share data—Diluted: Net income $ 0.26 $ 0.43 $ (0.15 ) $ 1.30 |
Principles of Consolidation a58
Principles of Consolidation and Basis of Presentation - Additional Information (Detail) $ in Thousands | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)SegmentProduct |
Organization And Basis Of Presentation [Line Items] | |||
Date of incorporation | Feb. 9, 2016 | ||
State of incorporation | Cayman Islands | ||
Kind of listing | A ordinary shares | ||
Date of liquidation | Nov. 7, 2016 | ||
Number of business segments | Segment | 3 | ||
Proceeds from sale of capital stock | $ 18,700 | $ 18,700 | |
Pretax gain on sale of capital stock | $ 6,900 | $ 6,900 | $ 6,857 |
Commercial Lines Segment | |||
Organization And Basis Of Presentation [Line Items] | |||
Number of product classifications | Product | 3 |
Redomestication - Additional In
Redomestication - Additional Information (Detail) - Global Indemnity Limited | Dec. 31, 2016 |
Ordinary Shares A | |
Entity Location [Line Items] | |
Ordinary share exchange | 1 |
Ordinary Shares B | |
Entity Location [Line Items] | |
Ordinary share exchange | 1 |
Summary of Significant Accoun60
Summary of Significant Accounting Policies - Additional Information (Detail) | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)Entity | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Significant Accounting Policies [Line Items] | ||||||
Limited liability partnerships, percentage of ownership interest | 3.00% | |||||
Investments in other invested assets | $ 66,121,000 | $ 32,592,000 | ||||
Cash and cash equivalents | 75,110,000 | 67,037,000 | $ 58,823,000 | $ 105,492,000 | ||
Allowance for bad debts | 1,900,000 | 1,600,000 | ||||
Impairment of goodwill | 0 | 0 | ||||
Impairments of indefinite lived intangible assets | 0 | 0 | ||||
Impairment of definite lived intangible assets | 0 | 0 | ||||
Amortization of deferred acquisition costs | 114,300,000 | 86,200,000 | 57,100,000 | |||
Premium deficiency charges | 300,000 | 200,000 | 400,000 | |||
Premium deficiency reserve | 0 | 0 | ||||
Net foreign currency transaction gains (losses) | (700,000) | 400,000 | 500,000 | |||
Proceeds from sale of capital stock | $ 18,700,000 | $ 18,700,000 | ||||
Pretax gain on sale of capital stock | $ 6,900,000 | $ 6,900,000 | $ 6,857,000 | |||
Variable Interest Entity, Not Primary Beneficiary | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of VIEs | Entity | 2 | |||||
Ownership interest exceeds respective investments | 3.00% | |||||
Allowance for Reinsurance Recoverable | ||||||
Significant Accounting Policies [Line Items] | ||||||
Allowance for uncollectible reinsurance receivables | $ 8,040,000 | $ 9,675,000 | $ 9,350,000 | $ 9,010,000 | ||
Money Market Funds | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cash and cash equivalents | $ 52,000,000 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||||||||||
Revenue | $ 534,514 | $ 538,778 | $ 333,755 | ||||||||||
Pre-tax (loss) | $ 46,535 | $ 10,598 | $ (11,468) | $ 1,953 | $ 29,463 | $ (9,727) | $ 9,772 | $ 3,238 | 47,618 | 32,746 | 71,194 | ||
Goodwill | $ 6,521 | 6,521 | 6,521 | 6,521 | 4,820 | $ 6,521 | |||||||
Intangible assets | $ 32,000 | ||||||||||||
Amortization of definite lived intangible assets | $ 500 | 500 | 400 | ||||||||||
Business combination, employee related compensation cost paid, which were included in the fair value of net assets acquired | 1,600 | ||||||||||||
American Reliable Insurance Company | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenue | 259,000 | ||||||||||||
Pre-tax (loss) | (4,200) | ||||||||||||
Goodwill | 1,701 | 1,701 | 1,701 | ||||||||||
Intangible assets | 32,000 | $ 32,000 | 32,000 | ||||||||||
Intangible assets arising from acquisition deductible for income tax, period | 15 years | ||||||||||||
Amortization of definite lived intangible assets | $ 25,700 | ||||||||||||
American Bankers Insurance Company | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Interest rate on dispute resolution agreement | 5.00% | 5.00% | |||||||||||
Global Indemnity Group Inc | American Reliable Insurance Company | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Aggregate purchase price | $ 113,700 | ||||||||||||
Business acquisition date | Jan. 1, 2015 | ||||||||||||
Acquired voting equity interest | 100.00% | ||||||||||||
Customary insurance liabilities, obligations, and mandates | $ 283,900 | ||||||||||||
Estimated purchase price | $ 99,800 | ||||||||||||
Global Indemnity Group Inc | American Reliable Insurance Company | Fox Paine and Company | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Investment bank fee as a percentage of the amount paid plus required capital to operate American Reliable on a standalone basis | 3.00% | ||||||||||||
Investment advisory fee | $ 1,500 | ||||||||||||
Aggregate investment advisory fee | $ 6,500 | $ 6,500 | $ 6,500 | ||||||||||
Ordinary shares of Global Indemnity issued to pay fees | 267,702 | 267,702 | 267,702 | ||||||||||
Global Indemnity Group Inc | Business Acquisition Cost | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business combination, additional costs | $ 1,800 | $ 3,300 | $ 5,100 |
Schedule of Unaudited Pro Forma
Schedule of Unaudited Pro Forma Consolidated Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||
Total Revenue | $ 538,778 | $ 597,583 |
Net Income (Loss) | $ 46,864 | $ 63,053 |
Net Income (Loss) per share (diluted) | $ 1.91 | $ 2.46 |
Estimated Fair Value of Assets
Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2016 | Jan. 01, 2015 | Dec. 31, 2014 | |
ASSETS: | ||||
Intangible assets | $ 32,000 | |||
LIABILITIES: | ||||
Goodwill | $ 6,521 | $ 6,521 | $ 4,820 | |
American Reliable Insurance Company | ||||
ASSETS: | ||||
Investments | 226,458 | |||
Cash and cash equivalents | 21,360 | |||
Premiums receivables, net | 26,102 | |||
Accounts receivable | 11,311 | |||
Reinsurance receivables | 13,842 | |||
Prepaid reinsurance premiums | 43,506 | |||
Intangible assets | 32,000 | |||
Deferred federal income taxes | 915 | |||
Other assets | 6,473 | |||
Total assets | 381,967 | |||
LIABILITIES: | ||||
Unearned premiums | 172,234 | |||
Unpaid losses and loss adjustment expenses | 89,489 | |||
Reinsurance balances payable | 13,219 | |||
Contingent commissions | 3,903 | |||
Other liabilities | 5,026 | |||
Total liabilities | 283,871 | |||
Estimated fair value of net assets acquired | 98,096 | |||
Purchase price | 99,797 | |||
Goodwill | $ 1,701 |
Valuation of Intangible Assets
Valuation of Intangible Assets (Detail) $ in Thousands | Jan. 01, 2015USD ($) |
Acquired Intangible Assets [Line Items] | |
Amount | $ 32,000 |
State insurance licenses | |
Acquired Intangible Assets [Line Items] | |
Amount | 5,000 |
Value of business acquired | |
Acquired Intangible Assets [Line Items] | |
Amount | $ 25,500 |
Value of business acquired | Maximum | |
Acquired Intangible Assets [Line Items] | |
Useful Life | 1 year |
Agent Relationships | |
Acquired Intangible Assets [Line Items] | |
Useful Life | 10 years |
Amount | $ 900 |
Trade names | |
Acquired Intangible Assets [Line Items] | |
Useful Life | 7 years |
Amount | $ 600 |
Intangible Assets Arising from
Intangible Assets Arising from Acquisitions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Intangible Assets Amortization [Line Items] | ||
Cost and Net Value | $ 19,000 | $ 19,000 |
Accumulated Amortization | 2,721 | 27,693 |
Net Value | $ 23,079 | 23,607 |
Value of Business Acquired | ||
Acquired Intangible Assets Amortization [Line Items] | ||
Cost | 25,500 | |
Accumulated Amortization | $ 25,500 | |
Agent Relationships | ||
Acquired Intangible Assets Amortization [Line Items] | ||
Useful Life | 10 years | 10 years |
Cost | $ 900 | $ 900 |
Accumulated Amortization | $ 179 | $ 90 |
Trade names | ||
Acquired Intangible Assets Amortization [Line Items] | ||
Useful Life | 7 years | 7 years |
Cost | $ 600 | $ 600 |
Accumulated Amortization | 173 | $ 86 |
Maximum | Value of Business Acquired | ||
Acquired Intangible Assets Amortization [Line Items] | ||
Useful Life | 1 year | |
State insurance licenses | ||
Acquired Intangible Assets Amortization [Line Items] | ||
Cost and Net Value | $ 10,000 | $ 10,000 |
American Reliable Insurance Company | ||
Acquired Intangible Assets Amortization [Line Items] | ||
Cost | 32,000 | |
Accumulated Amortization | 25,676 | |
Net Value | 6,324 | |
American Reliable Insurance Company | Value of Business Acquired | ||
Acquired Intangible Assets Amortization [Line Items] | ||
Cost | 25,500 | |
Accumulated Amortization | 25,500 | |
Net Value | $ 0 | |
American Reliable Insurance Company | Agent Relationships | ||
Acquired Intangible Assets Amortization [Line Items] | ||
Useful Life | 10 years | |
Cost | $ 900 | |
Accumulated Amortization | 90 | |
Net Value | $ 810 | |
American Reliable Insurance Company | Trade names | ||
Acquired Intangible Assets Amortization [Line Items] | ||
Useful Life | 7 years | |
Cost | $ 600 | |
Accumulated Amortization | 86 | |
Net Value | $ 514 | |
American Reliable Insurance Company | Maximum | Value of Business Acquired | ||
Acquired Intangible Assets Amortization [Line Items] | ||
Useful Life | 1 year | |
American Reliable Insurance Company | State insurance licenses | ||
Acquired Intangible Assets Amortization [Line Items] | ||
Cost and Net Value | $ 5,000 |
Expected Amortization Expense R
Expected Amortization Expense Related to American Reliable (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | $ 529 | |
2,017 | 529 | |
2,018 | 529 | |
2,019 | 529 | |
2,020 | $ 529 | |
American Reliable Insurance Company | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | $ 176 | |
2,017 | 176 | |
2,018 | 176 | |
2,019 | 176 | |
2,020 | $ 176 |
Fair Value, Gross Contractual A
Fair Value, Gross Contractual Amounts Due, and Contractual Cash Flows Not Expected to be Collected of Acquired Receivables (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Premium Receivables | |
Business Acquisition [Line Items] | |
Acquired receivables, Fair Value | $ 26,102 |
Acquired receivables, Gross Contractual Amounts Due | 26,896 |
Acquired receivables, Contractual cash flows not expected to be collected | 794 |
Accounts Receivable | |
Business Acquisition [Line Items] | |
Acquired receivables, Fair Value | 11,311 |
Acquired receivables, Gross Contractual Amounts Due | 11,311 |
Reinsurance Receivables | |
Business Acquisition [Line Items] | |
Acquired receivables, Fair Value | 13,842 |
Acquired receivables, Gross Contractual Amounts Due | $ 13,842 |
Schedule of Amortized Cost and
Schedule of Amortized Cost and Estimated Fair Value of Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 1,426,975 | $ 1,441,082 | |
Gross Unrealized Gains | 9,158 | 23,261 | |
Gross Unrealized Losses | (9,424) | (15,287) | |
Estimated Fair Value | 1,426,709 | 1,449,056 | |
Other than temporary impairments recognized in AOCI | [1] | (4) | (9) |
Common Shares | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 119,515 | 100,157 | |
Gross Unrealized Gains | 3,445 | 16,118 | |
Gross Unrealized Losses | (2,403) | (5,960) | |
Estimated Fair Value | 120,557 | 110,315 | |
Other Invested Assets | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 66,121 | 32,592 | |
Estimated Fair Value | 66,121 | 32,592 | |
Fixed Maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 1,241,339 | 1,308,333 | |
Gross Unrealized Gains | 5,713 | 7,143 | |
Gross Unrealized Losses | (7,021) | (9,327) | |
Estimated Fair Value | 1,240,031 | 1,306,149 | |
Other than temporary impairments recognized in AOCI | [1] | (4) | (9) |
Fixed Maturities | U.S. Treasury and Agency Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 71,517 | 106,303 | |
Gross Unrealized Gains | 763 | 1,140 | |
Gross Unrealized Losses | (233) | (321) | |
Estimated Fair Value | 72,047 | 107,122 | |
Fixed Maturities | Obligations of States and Political Subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 155,402 | 203,121 | |
Gross Unrealized Gains | 1,423 | 2,576 | |
Gross Unrealized Losses | (379) | (457) | |
Estimated Fair Value | 156,446 | 205,240 | |
Fixed Maturities | Mortgage Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 88,131 | 157,753 | |
Gross Unrealized Gains | 895 | 2,113 | |
Gross Unrealized Losses | (558) | (743) | |
Estimated Fair Value | 88,468 | 159,123 | |
Fixed Maturities | Asset-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 233,890 | 261,008 | |
Gross Unrealized Gains | 684 | 435 | |
Gross Unrealized Losses | (583) | (1,421) | |
Estimated Fair Value | 233,991 | 260,022 | |
Other than temporary impairments recognized in AOCI | [1] | (4) | (9) |
Fixed Maturities | Commercial Mortgage-Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 184,821 | 142,742 | |
Gross Unrealized Gains | 118 | ||
Gross Unrealized Losses | (1,747) | (2,352) | |
Estimated Fair Value | 183,192 | 140,390 | |
Fixed Maturities | Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 381,209 | 334,720 | |
Gross Unrealized Gains | 1,666 | 685 | |
Gross Unrealized Losses | (2,848) | (3,294) | |
Estimated Fair Value | 380,027 | 332,111 | |
Fixed Maturities | Foreign Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 126,369 | 102,686 | |
Gross Unrealized Gains | 164 | 194 | |
Gross Unrealized Losses | (673) | (739) | |
Estimated Fair Value | $ 125,860 | $ 102,141 | |
[1] | Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income ("AOCI"). |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses less than 12 months | $ 8,533,000 | $ 14,772,000 | |
Gross unrealized losses | 9,424,000 | 15,287,000 | |
Gross unrealized losses for 12 months or greater | [1] | 891,000 | $ 515,000 |
Investments in insurance enhanced asset backed and credit securities | 27,100,000 | ||
Investments in insurance enhanced municipal bonds | 9,810,000 | ||
Ratings without insurance | 0 | ||
Investments in asset backed and taxable municipal bonds | $ 17,300,000 | ||
Asset backed and taxable municipal bonds as a percentage of total cash and invested assets | 1.20% | ||
Municipal Bond Insurance Association | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in asset backed and taxable municipal bonds | $ 3,000,000 | ||
Assured Guaranty Corporation | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in asset backed and taxable municipal bonds | $ 14,300,000 | ||
Maximum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in a single issuer as a percentage of shareholders' equity | 5.00% | 5.00% | |
Financial Guarantors | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in insurance enhanced municipal bonds | $ 4,646,000 | ||
Taxable Municipal Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in asset backed and taxable municipal bonds | 17,200,000 | ||
Pre-Refunded Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in insurance enhanced municipal bonds | 5,614,000 | ||
Pre-Refunded Securities | Financial Guarantors | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in insurance enhanced municipal bonds | 450,000 | ||
A+ Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in insurance enhanced municipal bonds | $ 9,800,000 | ||
Insurance enhanced municipal bonds as a percentage of total cash and invested assets | 0.70% | ||
Tax free insurance enhanced municipal bonds | $ 4,200,000 | ||
Common Shares | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses less than 12 months | 2,403,000 | $ 5,960,000 | |
Gross unrealized losses | 2,403,000 | 5,960,000 | |
Asset-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | $ 583,000 | ||
Weighted average credit enhancement | 21.80% | ||
Investments in asset backed and taxable municipal bonds | $ 100,000 | ||
Asset-backed Securities | AA Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses for 12 months or greater | 90,000 | ||
Obligations of States and Political Subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 379,000 | ||
Obligations of States and Political Subdivisions | A Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses for 12 months or greater | 10,000 | ||
U.S. Treasury and Agency Obligations | AA+ Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses less than 12 months | 233,000 | ||
Mortgage Backed Securities | Investment Grade Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 558,000 | ||
Gross unrealized losses for 12 months or greater | 17,000 | ||
Commercial Mortgage-Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | $ 1,747,000 | ||
Weighted average credit enhancement | 30.20% | ||
Commercial Mortgage-Backed Securities | A+ Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses for 12 months or greater | $ 657,000 | ||
Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 2,848,000 | ||
Corporate Bonds | Investment Grade Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses for 12 months or greater | 117,000 | ||
Foreign Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 673,000 | ||
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 fair value of the non-consolidated VIE | 32,900,000 | 32,600,000 | |
Variable interest entities, maximum exposure to loss | 48,600,000 | $ 52,600,000 | |
New variable interest VIE | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Significant variable interest in fair value of the non-consolidated VIE | 33,200,000 | ||
Variable interest entities, maximum exposure to loss | $ 42,300,000 | ||
[1] | Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. |
Summary of Amortized Cost and E
Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | $ 80,840 | |
Due in one year through five years, Amortized Cost | 623,678 | |
Due in five years through ten years, Amortized Cost | 20,356 | |
Due in ten years through fifteen years, Amortized Cost | 3,245 | |
Due after fifteen years, Amortized Cost | 6,378 | |
Fixed maturities, amortized cost | 1,241,339 | $ 1,308,333 |
Due in one year or less, Estimated Fair value | 80,982 | |
Due in one year through five years, Estimated Fair value | 622,926 | |
Due in five years through ten years, Estimated Fair value | 20,770 | |
Due in ten years through fifteen years, Estimated Fair value | 3,252 | |
Due after fifteen years, Estimated Fair value | 6,450 | |
Fixed Maturities, estimated fair value | 1,240,031 | $ 1,306,149 |
Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 88,131 | |
Estimated Fair value | 88,468 | |
Asset-backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 233,890 | |
Estimated Fair value | 233,991 | |
Commercial Mortgage-Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 184,821 | |
Estimated Fair value | $ 183,192 |
Summary of Securities with Gros
Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | $ 601,410 | $ 827,179 | |
Less than 12 months, Gross Unrealized Losses | (8,533) | (14,772) | |
12 months or longer, Fair Value | [1] | 103,870 | 41,401 |
12 months or longer, Gross Unrealized Losses | [1] | (891) | (515) |
Total, Fair Value | 705,280 | 868,580 | |
Total, Gross Unrealized Losses | (9,424) | (15,287) | |
Obligations of States and Political Subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (379) | ||
Asset-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (583) | ||
Commercial Mortgage-Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (1,747) | ||
Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (2,848) | ||
Foreign Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (673) | ||
Common Shares | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 57,439 | 36,798 | |
Less than 12 months, Gross Unrealized Losses | (2,403) | (5,960) | |
Total, Fair Value | 57,439 | 36,798 | |
Total, Gross Unrealized Losses | (2,403) | (5,960) | |
Fixed Maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 543,971 | 790,381 | |
Less than 12 months, Gross Unrealized Losses | (6,130) | (8,812) | |
12 months or longer, Fair Value | [1] | 103,870 | 41,401 |
12 months or longer, Gross Unrealized Losses | [1] | (891) | (515) |
Total, Fair Value | 647,841 | 831,782 | |
Total, Gross Unrealized Losses | (7,021) | (9,327) | |
Fixed Maturities | U.S. Treasury and Agency Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 39,570 | 79,496 | |
Less than 12 months, Gross Unrealized Losses | (233) | (321) | |
Total, Fair Value | 39,570 | 79,496 | |
Total, Gross Unrealized Losses | (233) | (321) | |
Fixed Maturities | Obligations of States and Political Subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 46,861 | 49,708 | |
Less than 12 months, Gross Unrealized Losses | (369) | (373) | |
12 months or longer, Fair Value | [1] | 670 | 7,732 |
12 months or longer, Gross Unrealized Losses | [1] | (10) | (84) |
Total, Fair Value | 47,531 | 57,440 | |
Total, Gross Unrealized Losses | (379) | (457) | |
Fixed Maturities | Mortgage Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 52,780 | 63,759 | |
Less than 12 months, Gross Unrealized Losses | (541) | (743) | |
12 months or longer, Fair Value | [1] | 298 | |
12 months or longer, Gross Unrealized Losses | [1] | (17) | |
Total, Fair Value | 53,078 | 63,759 | |
Total, Gross Unrealized Losses | (558) | (743) | |
Fixed Maturities | Asset-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 62,737 | 203,381 | |
Less than 12 months, Gross Unrealized Losses | (493) | (1,404) | |
12 months or longer, Fair Value | [1] | 23,937 | 4,843 |
12 months or longer, Gross Unrealized Losses | [1] | (90) | (17) |
Total, Fair Value | 86,674 | 208,224 | |
Total, Gross Unrealized Losses | (583) | (1,421) | |
Fixed Maturities | Commercial Mortgage-Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 94,366 | 118,813 | |
Less than 12 months, Gross Unrealized Losses | (1,090) | (2,005) | |
12 months or longer, Fair Value | [1] | 69,747 | 21,577 |
12 months or longer, Gross Unrealized Losses | [1] | (657) | (347) |
Total, Fair Value | 164,113 | 140,390 | |
Total, Gross Unrealized Losses | (1,747) | (2,352) | |
Fixed Maturities | Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 171,621 | 211,364 | |
Less than 12 months, Gross Unrealized Losses | (2,731) | (3,269) | |
12 months or longer, Fair Value | [1] | 9,218 | 2,120 |
12 months or longer, Gross Unrealized Losses | [1] | (117) | (25) |
Total, Fair Value | 180,839 | 213,484 | |
Total, Gross Unrealized Losses | (2,848) | (3,294) | |
Fixed Maturities | Foreign Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 76,036 | 63,860 | |
Less than 12 months, Gross Unrealized Losses | (673) | (697) | |
12 months or longer, Fair Value | [1] | 5,129 | |
12 months or longer, Gross Unrealized Losses | [1] | (42) | |
Total, Fair Value | 76,036 | 68,989 | |
Total, Gross Unrealized Losses | $ (673) | $ (739) | |
[1] | Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. |
Schedule of Other Than Temporar
Schedule of Other Than Temporary Impairments on Investments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
OTTI losses, gross | $ (259) | $ (24) | $ (31) |
Portion of loss recognized in other comprehensive income (pre-tax) | 0 | 0 | 0 |
Net impairment losses on fixed maturities recognized in earnings | (259) | (24) | (31) |
Equity securities | (6,474) | (7,311) | (470) |
Total | $ (6,733) | $ (7,335) | $ (501) |
Schedule of Credit Losses Recog
Schedule of Credit Losses Recognized in Earnings (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Balance at beginning of period | $ 31 | $ 50 | $ 54 |
Additions where no OTTI was previously recorded | 0 | 0 | 0 |
Additions where an OTTI was previously recorded | 0 | 0 | 0 |
Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery | 0 | 0 | 0 |
Reductions reflecting increases in expected cash flows to be collected | 0 | 0 | 0 |
Reductions for securities sold during the period | (19) | (4) | |
Balance at end of period | $ 31 | $ 31 | $ 50 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income, Net of Tax (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | |||
Deferred taxes | $ (352) | $ (3,896) | |
Accumulated other comprehensive income (loss), net of tax | (618) | 4,078 | $ 23,384 |
Fixed Maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Net unrealized gains (losses) | (1,308) | (2,184) | |
Common Shares | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Net unrealized gains (losses) | $ 1,042 | $ 10,158 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 4,078 | $ 23,384 | |
Other comprehensive income (loss) before reclassification | 10,113 | (17,321) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (14,809) | (1,985) | |
Other comprehensive income (loss), net of tax | (4,696) | (19,306) | $ (30,644) |
Ending balance | (618) | 4,078 | 23,384 |
Unrealized Gains and Losses on Available for Sale Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 4,200 | 23,647 | |
Other comprehensive income (loss) before reclassification | 10,374 | (17,065) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (15,128) | (2,382) | |
Other comprehensive income (loss), net of tax | (4,754) | (19,447) | |
Ending balance | (554) | 4,200 | 23,647 |
Foreign Currency Items | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (122) | (263) | |
Other comprehensive income (loss) before reclassification | (261) | (256) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 319 | 397 | |
Other comprehensive income (loss), net of tax | 58 | 141 | |
Ending balance | $ (64) | $ (122) | $ (263) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other net realized investment (gains) losses | $ 28,454 | $ 3,961 | $ 36,361 | ||||||||
Other than temporary impairment losses on investments | (6,733) | (7,335) | (501) | ||||||||
Income before income taxes | $ 46,535 | $ 10,598 | $ (11,468) | $ 1,953 | $ 29,463 | $ (9,727) | $ 9,772 | $ 3,238 | 47,618 | 32,746 | 71,194 |
Income tax expense (benefit) | 2,250 | 8,723 | (8,338) | ||||||||
Net income | $ 38,373 | $ 9,535 | $ (5,165) | $ 7,125 | $ 27,304 | $ (3,746) | $ 11,117 | $ 6,794 | 49,868 | 41,469 | $ 62,856 |
Total reclassifications, net of tax | (14,809) | (1,985) | |||||||||
Unrealized Gains and Losses on Available for Sale Securities | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications, net of tax | (15,128) | (2,382) | |||||||||
Foreign Currency Items | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications, net of tax | 319 | 397 | |||||||||
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 | (30,055) | (11,559) | |||||||||
Other than temporary impairment losses on investments | 6,733 | 7,335 | |||||||||
Income before income taxes | (23,322) | (4,224) | |||||||||
Income tax expense (benefit) | 8,194 | 1,842 | |||||||||
Net income | (15,128) | (2,382) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Items | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other net realized investment (gains) losses | 491 | 610 | |||||||||
Income tax expense (benefit) | (172) | (213) | |||||||||
Net income | $ 319 | $ 397 |
Components of Net Realized Inve
Components of Net Realized Investment Gains (Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Total net realized investment gains (losses) | $ 30,778 | $ 1,928 | $ (3,492) | $ (7,493) | $ 3,842 | $ (10,778) | $ 6,532 | $ (2,970) | $ 21,721 | $ (3,374) | $ 35,860 | |
Not Designated as Hedging Instrument | Interest Rate Swap | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Gross realized gains | 3,733 | |||||||||||
Gross realized losses | (4,843) | (6,988) | (20,836) | |||||||||
Total net realized investment gains (losses) | [1] | (1,110) | (6,988) | (20,836) | ||||||||
Fixed Maturities | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Gross realized gains | 2,947 | 3,565 | 2,843 | |||||||||
Gross realized losses | (691) | (2,180) | (703) | |||||||||
Total net realized investment gains (losses) | 2,256 | 1,385 | 2,140 | |||||||||
Common Shares | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Gross realized gains | 28,785 | 10,379 | 55,907 | |||||||||
Gross realized losses | (8,210) | (8,246) | (1,351) | |||||||||
Total net realized investment gains (losses) | $ 20,575 | 2,133 | $ 54,556 | |||||||||
Preferred Stock | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Gross realized gains | 96 | |||||||||||
Total net realized investment gains (losses) | $ 96 | |||||||||||
[1] | Includes $4.8 million, $5.4 million, and $5.5 million of periodic net interest settlements related to the derivatives for the years ended December 31, 2016, 2015, and 2014, respectively. |
Components of Net Realized In78
Components of Net Realized Investment Gains (Losses) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Rate Swap | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Net interest settlements | $ 4.8 | $ 5.4 | $ 5.5 |
Schedule of Proceeds From Sales
Schedule of Proceeds From Sales of Available for Sale Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed maturities | $ 381,389 | $ 647,404 | $ 415,739 |
Equity securities | $ 111,156 | 39,723 | $ 191,765 |
Preferred stock | $ 1,540 |
Schedule of Investment Income (
Schedule of Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Investment income | $ 39,151 | $ 37,918 | $ 32,420 | |||||||||
Investment expense | [1] | (5,168) | (3,309) | (3,599) | ||||||||
Net investment income | $ 8,880 | $ 8,795 | $ 6,562 | $ 9,746 | $ 8,375 | $ 8,852 | $ 9,141 | $ 8,241 | 33,983 | 34,609 | 28,821 | |
Fixed Maturities | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Investment income | 30,337 | 32,091 | 26,788 | |||||||||
Equity Securities | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Investment income | 3,302 | 3,125 | 5,484 | |||||||||
Cash and Cash Equivalents | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Investment income | 217 | 82 | 61 | |||||||||
Other Invested Assets | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Investment income | $ 5,295 | $ 2,620 | $ 87 | |||||||||
[1] | Investment expense for the year ended December 31, 2016 includes $1.5 million in upfront fees necessary to enter into a new investment. See Note 9 for additional information on the Company's $40 million commitment related to this new investment. |
Schedule of Investment Income81
Schedule of Investment Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2016 | ||
Schedule of Available-for-sale Securities [Line Items] | |||||
Investment expense | [1] | $ 5,168 | $ 3,309 | $ 3,599 | |
Commitment to purchase alternative investment | 40,000 | $ 50,000 | $ 40,000 | ||
Upfront Fees | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Investment expense | $ 1,500 | ||||
[1] | Investment expense for the year ended December 31, 2016 includes $1.5 million in upfront fees necessary to enter into a new investment. See Note 9 for additional information on the Company's $40 million commitment related to this new investment. |
Schedule of Total Investment Re
Schedule of Total Investment Return (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Investment Income [Line Items] | |||||||||||
Net investment income | $ 8,880 | $ 8,795 | $ 6,562 | $ 9,746 | $ 8,375 | $ 8,852 | $ 9,141 | $ 8,241 | $ 33,983 | $ 34,609 | $ 28,821 |
Net realized investment gains(losses) | $ 30,778 | $ 1,928 | $ (3,492) | $ (7,493) | $ 3,842 | $ (10,778) | $ 6,532 | $ (2,970) | 21,721 | (3,374) | 35,860 |
Change in unrealized holding gains and losses | (8,240) | (25,673) | (45,861) | ||||||||
Net realized and unrealized investment returns | 13,481 | (29,047) | (10,001) | ||||||||
Total investment return | $ 47,464 | $ 5,562 | $ 18,820 | ||||||||
Total investment return % | 3.10% | 0.30% | 1.20% | ||||||||
Average investment portfolio | $ 1,507,184 | $ 1,752,785 | $ 1,533,104 |
Summary of Insurance Enhanced M
Summary of Insurance Enhanced Municipal Bonds Backed by Financial Guarantors (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | $ 9,810 |
Ambac Financial Group | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 1,494 |
Municipal Bond Insurance Association | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 2,657 |
Gov't National Housing Association | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 495 |
Financial Guarantors | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 4,646 |
Other Credit Enhanced Municipal Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 5,164 |
Pre-Refunded Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 5,614 |
Pre-Refunded Securities | Ambac Financial Group | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 450 |
Pre-Refunded Securities | Financial Guarantors | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 450 |
Pre-Refunded Securities | Other Credit Enhanced Municipal Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 5,164 |
Government Guaranteed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 495 |
Government Guaranteed Securities | Gov't National Housing Association | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 495 |
Government Guaranteed Securities | Financial Guarantors | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 495 |
Exposure Net Of Pre-refunded & Government Guaranteed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 3,701 |
Exposure Net Of Pre-refunded & Government Guaranteed Securities | Ambac Financial Group | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 1,044 |
Exposure Net Of Pre-refunded & Government Guaranteed Securities | Municipal Bond Insurance Association | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 2,657 |
Exposure Net Of Pre-refunded & Government Guaranteed Securities | Financial Guarantors | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | $ 3,701 |
Summary of Estimated Fair Value
Summary of Estimated Fair Values of Bonds Held on Deposit (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | $ 559,069 | $ 582,431 | |
On Deposit With Governmental Authorities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | 29,079 | 38,815 | |
Intercompany Trusts Held For Benefit Of U.S. Policyholders | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | 351,002 | 375,827 | |
Held In Trust Pursuant To Third Party Requirements | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | 88,178 | 66,544 | |
Letter Of Credit Held For Third Party Requirements | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | 4,871 | 5,598 | |
Securities held as collateral for borrowing arrangements | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | [1] | $ 85,939 | $ 95,647 |
[1] | Amount required to collateralize margin borrowing facilities. |
Summarized Information of Locat
Summarized Information of Location and Gross Amount of Derivatives' Fair Value in Consolidated Balance Sheets (Detail) - Not Designated as Hedging Instrument - Interest Rate Swap - Other Liabilities - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 200,000 | $ 200,000 |
Fair Value | $ (11,524) | $ (15,256) |
Summary of Net Gains (Losses) I
Summary of Net Gains (Losses) Included in Consolidated Statements of Operations for Changes in Fair Value of Derivatives and Periodic Net Interest Settlements Under Derivatives (Detail) - Interest Rate Swap - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net loss for changes in fair value and net settlements of derivatives | $ 4,800 | $ 5,400 | $ 5,500 |
Net Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net loss for changes in fair value and net settlements of derivatives | $ (1,110) | $ (6,988) | $ (20,836) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - Other Assets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Funds needed to post execute swap transaction | $ 5.3 | $ 4.5 |
Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Margin calls made in connection with interest rate swaps | $ 12.6 | $ 17.3 |
Company's Invested Assets and D
Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | $ 1,426,709 | $ 1,449,056 | ||
Common Shares | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 120,557 | 110,315 | ||
Fixed Maturities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 1,240,031 | 1,306,149 | ||
Fixed Maturities | U.S. Treasury and Agency Obligations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 72,047 | 107,122 | ||
Fixed Maturities | Obligations of States and Political Subdivisions | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 156,446 | 205,240 | ||
Fixed Maturities | Mortgage Backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 88,468 | 159,123 | ||
Fixed Maturities | Commercial Mortgage-Backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 183,192 | 140,390 | ||
Fixed Maturities | Asset-backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 233,991 | 260,022 | ||
Fixed Maturities | Corporate Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 380,027 | 332,111 | ||
Fixed Maturities | Foreign Corporate Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 125,860 | 102,141 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 1,360,588 | [1] | 1,416,464 | [2] |
Total invested liabilities | 11,524 | 15,256 | ||
Fair Value, Measurements, Recurring | Derivative instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested liabilities | 11,524 | 15,256 | ||
Fair Value, Measurements, Recurring | Common Shares | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 120,557 | 110,315 | ||
Fair Value, Measurements, Recurring | Fixed Maturities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 1,240,031 | 1,306,149 | ||
Fair Value, Measurements, Recurring | Fixed Maturities | U.S. Treasury and Agency Obligations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 72,047 | 107,122 | ||
Fair Value, Measurements, Recurring | Fixed Maturities | Obligations of States and Political Subdivisions | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 156,446 | 205,240 | ||
Fair Value, Measurements, Recurring | Fixed Maturities | Mortgage Backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 88,468 | 159,123 | ||
Fair Value, Measurements, Recurring | Fixed Maturities | Commercial Mortgage-Backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 183,192 | 140,390 | ||
Fair Value, Measurements, Recurring | Fixed Maturities | Asset-backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 233,991 | 260,022 | ||
Fair Value, Measurements, Recurring | Fixed Maturities | Corporate Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 380,027 | 332,111 | ||
Fair Value, Measurements, Recurring | Fixed Maturities | Foreign Corporate Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 125,860 | 102,141 | ||
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 | 192,604 | [1] | 211,579 | [2] |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Common Shares | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 120,557 | 110,315 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Fixed Maturities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 72,047 | 101,264 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Fixed Maturities | U.S. Treasury and Agency Obligations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 72,047 | 101,264 | ||
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 | 1,167,984 | [1] | 1,204,885 | [2] |
Total invested liabilities | 11,524 | 15,256 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Derivative instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested liabilities | 11,524 | 15,256 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 1,167,984 | 1,204,885 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities | U.S. Treasury and Agency Obligations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 5,858 | |||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities | Obligations of States and Political Subdivisions | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 156,446 | 205,240 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities | Mortgage Backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 88,468 | 159,123 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities | Commercial Mortgage-Backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 183,192 | 140,390 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities | Asset-backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 233,991 | 260,022 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities | Corporate Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 380,027 | 332,111 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities | Foreign Corporate Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | $ 125,860 | $ 102,141 | ||
[1] | Excluded from the table above are limited partnerships of $66.1 million at December 31, 2016 whose fair value is based on net asset value as a practical expedient. | |||
[2] | Excluded from the table above are limited partnerships of $32.6 million at December 31, 2015 whose fair value is based on net asset value as a practical expedient. |
Company's Invested Assets and89
Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investment in limited partnership | $ 66,121 | $ 32,592 |
Current Fair Value of Debt (Det
Current Fair Value of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | $ 163,143 | $ 172,034 | |
Debt, fair value | 162,343 | 167,394 | |
7.75% Subordinated Notes due 2045 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | [1] | 96,497 | 96,388 |
Debt, fair value | [1] | 95,697 | 91,748 |
Margin borrowing facilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 66,646 | 75,646 | |
Debt, fair value | $ 66,646 | $ 75,646 | |
[1] | As of December 31, 2016 and 2015, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.5 million and $3.6 million, respectively. |
Current Fair Value of Debt (Par
Current Fair Value of Debt (Parenthetical) (Detail) - 7.75% Subordinated Notes due 2045 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Subordinated Notes percentage | 7.75% | |
Subordinated Notes due date | 2,045 | |
Unamortized Debt Issuance Costs | $ 3,503 | $ 3,612 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity in the earnings of liability companies or partnerships | $ 5,190 | $ 2,533 | $ 0 |
7.75% Subordinated Notes due 2045 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Subordinated Notes percentage | 7.75% | ||
Subordinated Notes due date | 2,045 | ||
Fair Value, Inputs, Level 1 | 7.75% Subordinated Notes due 2045 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Subordinated Notes percentage | 7.75% | ||
Subordinated Notes due date | 2,045 |
Changes in Level 3 Investments
Changes in Level 3 Investments Measured at Fair Value on Recurring Basis (Detail) - Other Invested Assets $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $ 0 |
Included in realized gains (losses) | 486 |
Purchases | 27,303 |
Sales | (27,864) |
Ending balance | 0 |
Amortization of Bond Premium and Discount, Net | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Investment Income | $ 75 |
Fair Value and Future Funding C
Fair Value and Future Funding Commitments Related to These Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 66,121 | $ 32,592 | |
Future Funding Commitments | 24,768 | 20,014 | |
Real Estate Fund, LP | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [1] | 0 | |
European Non-Performing Loan Fund, LP | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [2] | 32,922 | 32,592 |
Future Funding Commitments | [2] | 15,714 | $ 20,014 |
Private Middle Market Loans, LLC | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [3] | 33,199 | |
Future Funding Commitments | [3] | $ 9,054 | |
[1] | This limited partnership invests in real estate assets through a combination of direct or indirect investments in partnerships, limited liability companies, mortgage loans, and lines of credit. 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. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company continues to hold an investment in this limited partnership and has written the fair value down to zero. | ||
[2] | 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. Based on the terms of the partnership agreement, the Company anticipates its interest in this partnership to be redeemed by 2020. | ||
[3] | This limited partnership provides financing for 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. Based on the terms of the investment management agreement, the Company anticipates its interest to be redeemed no later than 2024. |
Fair Value and Future Funding95
Fair Value and Future Funding Commitments Related to These Investments (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value written down | $ 0 |
Goodwill and Intangible Asset96
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets And Goodwill [Line Items] | |||
Goodwill | $ 6,521,000 | $ 6,521,000 | $ 4,820,000 |
Impairment of goodwill | 0 | 0 | |
Amortization of definite lived intangible assets | 500,000 | 500,000 | 400,000 |
Amortization of the value of business acquired | 0 | 25,500,000 | $ 0 |
Indefinite lived intangible assets | 19,000,000 | 19,000,000 | |
Impairment of indefinite lived intangible assets | 0 | 0 | |
Definite lived intangible assets | 4,100,000 | 4,600,000 | |
Impairment of definite lived intangible assets | $ 0 | 0 | |
VOBA | $ 25,500,000 |
Summary of Changes In Carrying
Summary of Changes In Carrying Amount of Goodwill By Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Intangible Assets [Line Items] | ||
Beginning balance | $ 6,521 | $ 4,820 |
Acquisition of American Reliable on January 1, 2015 | 0 | 1,701 |
Ending balance | 6,521 | 6,521 |
Commercial Lines Segment | ||
Acquired Intangible Assets [Line Items] | ||
Beginning balance | 4,820 | 4,820 |
Ending balance | 4,820 | 4,820 |
Personal Lines Segment | ||
Acquired Intangible Assets [Line Items] | ||
Beginning balance | 1,701 | |
Acquisition of American Reliable on January 1, 2015 | 1,701 | |
Ending balance | $ 1,701 | $ 1,701 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | $ 19,000 | $ 19,000 |
Cost | 25,800 | 51,300 |
Accumulated Amortization | 2,721 | 27,693 |
Net Value | 4,100 | 4,600 |
Net Value | 23,079 | 23,607 |
Trademarks | ||
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | 4,800 | 4,800 |
Trade names | ||
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | 4,200 | 4,200 |
State insurance licenses | ||
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | $ 10,000 | $ 10,000 |
Customer relationships | ||
Acquired Intangible Assets [Line Items] | ||
Useful Life | 15 years | 15 years |
Cost | $ 5,300 | $ 5,300 |
Accumulated Amortization | 2,369 | 2,017 |
Net Value | $ 2,931 | $ 3,283 |
Agent Relationships | ||
Acquired Intangible Assets [Line Items] | ||
Useful Life | 10 years | 10 years |
Cost | $ 900 | $ 900 |
Accumulated Amortization | 179 | 90 |
Net Value | $ 721 | $ 810 |
Trade names | ||
Acquired Intangible Assets [Line Items] | ||
Useful Life | 7 years | 7 years |
Cost | $ 600 | $ 600 |
Accumulated Amortization | 173 | 86 |
Net Value | $ 427 | 514 |
Value of Business Acquired | ||
Acquired Intangible Assets [Line Items] | ||
Cost | 25,500 | |
Accumulated Amortization | $ 25,500 | |
Value of Business Acquired | Maximum | ||
Acquired Intangible Assets [Line Items] | ||
Useful Life | 1 year |
Expected Amortization Expense (
Expected Amortization Expense (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | $ 529 |
2,018 | 529 |
2,019 | 529 |
2,020 | 529 |
2,021 | $ 529 |
Reinsurance Balances (Detail)
Reinsurance Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Effects of Reinsurance [Line Items] | ||||
Reinsurance receivables, net | $ 143,774 | $ 115,594 | ||
Collateral securing reinsurance receivables | (13,865) | (6,445) | ||
Reinsurance receivables, net of collateral | 129,909 | 109,149 | ||
Prepaid reinsurance premiums | 42,583 | 44,363 | ||
Allowance for Reinsurance Recoverable | ||||
Effects of Reinsurance [Line Items] | ||||
Allowance for uncollectible reinsurance receivables | $ 8,040 | $ 9,675 | $ 9,350 | $ 9,010 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Effects of Reinsurance [Line Items] | ||
Purchase accounting adjustments | $ 2 | $ 3 |
Minimum | ||
Effects of Reinsurance [Line Items] | ||
Unsecured reinsurance receivable percentage of shareholders' equity | 3.00% |
Unsecured Reinsurance Receivabl
Unsecured Reinsurance Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Reinsurance Receivables | $ 143,774 | $ 115,594 |
Munich Re America Corporation | A.M, Best A+ Rating | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Reinsurance Receivables | $ 51,178 |
Effect of Reinsurance on Premiu
Effect of Reinsurance on Premiums Written and Earned (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||||
Direct business | $ 468,046 | $ 458,185 | $ 229,978 | ||||||||||
Reinsurance assumed | 97,799 | 132,048 | 61,275 | ||||||||||
Reinsurance ceded | (94,905) | [1] | (88,989) | [1] | (18,072) | ||||||||
Net premiums | 470,940 | 501,244 | 273,181 | ||||||||||
Direct business | 466,750 | 452,441 | 228,652 | ||||||||||
Reinsurance assumed | 98,267 | 144,554 | 58,414 | ||||||||||
Reinsurance ceded | (96,552) | [1] | (92,852) | [1] | (18,547) | ||||||||
Net premiums | $ 109,472 | $ 119,553 | $ 117,804 | $ 121,636 | $ 123,222 | $ 124,707 | $ 128,877 | $ 127,337 | $ 468,465 | $ 504,143 | $ 268,519 | ||
[1] | Includes ceded written premiums and ceded earned premiums of $55.8 million and $59.5 million, respectively, to American Bankers Insurance Company. |
Effect of Reinsurance on Pre104
Effect of Reinsurance on Premiums Written and Earned (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Ceded written premiums | $ 94,905 | [1] | $ 88,989 | [1] | $ 18,072 |
Ceded earned premiums | 96,552 | [1] | 92,852 | [1] | $ 18,547 |
American Bankers Insurance Company | |||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Ceded written premiums | 35,300 | 55,800 | |||
Ceded earned premiums | $ 43,200 | $ 59,500 | |||
[1] | Includes ceded written premiums and ceded earned premiums of $55.8 million and $59.5 million, respectively, to American Bankers Insurance Company. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax [Line Items] | |||
Effective income tax benefit rate | (4.70%) | (26.60%) | 11.70% |
Deferred tax assets, valuation allowance | $ 0 | $ 0 | |
Alternative minimum tax credit carry forward | 10,957,000 | 10,868,000 | |
Net operating loss carryforwards | 3,205,000 | 1,934,000 | |
Section 163(j) carryforward | 8,075,000 | 3,135,000 | |
Unrecognized tax benefits | 0 | 0 | |
Interest and penalties for uncertain tax positions | 0 | $ 0 | $ 0 |
Liabilities for tax-related interest and penalties | $ 0 | ||
Global Indemnity Group Inc | |||
Income Tax [Line Items] | |||
Withholding tax paid in connection with the dividend payment | 6,300,000 | ||
Dividends paid | $ 125,000,000 | ||
Withholding Tax | 5.00% | ||
UNITED STATES | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 35.00% | ||
BERMUDA | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 0.00% | ||
CAYMAN ISLANDS | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 0.00% | ||
GIBRALTAR | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 0.00% | ||
LUXEMBOURG | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 29.22% | ||
IRELAND | Non Trading Income | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 25.00% | ||
IRELAND | Capital Gain | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 33.00% | ||
IRELAND | Trading Income | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 12.50% | ||
BARBADOS | Minimum | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 0.25% | ||
BARBADOS | Maximum | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 2.50% |
Income Before Income Taxes from
Income Before Income Taxes from its Non-U.S. Subsidiaries and U.S. Subsidiaries (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||||||||||
Gross premiums written | $ 565,845 | $ 590,233 | $ 291,253 | ||||||||
Net premiums written | 470,940 | 501,244 | 273,181 | ||||||||
Net premiums earned | $ 109,472 | $ 119,553 | $ 117,804 | $ 121,636 | $ 123,222 | $ 124,707 | $ 128,877 | $ 127,337 | 468,465 | 504,143 | 268,519 |
Net investment income | 8,880 | 8,795 | 6,562 | 9,746 | 8,375 | 8,852 | 9,141 | 8,241 | 33,983 | 34,609 | 28,821 |
Net realized investment gains (losses) | 30,778 | 1,928 | (3,492) | (7,493) | 3,842 | (10,778) | 6,532 | (2,970) | 21,721 | (3,374) | 35,860 |
Other income (loss) | 10,345 | 3,400 | 555 | ||||||||
Total revenues | 534,514 | 538,778 | 333,755 | ||||||||
Losses and Expenses: | |||||||||||
Net losses and loss adjustment expenses | 48,946 | 72,162 | 78,111 | 64,784 | 48,498 | 77,691 | 79,560 | 69,619 | 264,003 | 275,368 | 137,561 |
Acquisition costs and other underwriting expenses | 47,889 | 48,129 | 48,542 | 52,090 | 51,185 | 50,934 | 50,926 | 48,258 | 196,650 | 201,303 | 109,619 |
Corporate and other operating expenses | 17,338 | 24,448 | 14,559 | ||||||||
Interest expense | 8,905 | 4,913 | 822 | ||||||||
Income (loss) before income taxes | $ 46,535 | $ 10,598 | $ (11,468) | $ 1,953 | $ 29,463 | $ (9,727) | $ 9,772 | $ 3,238 | 47,618 | 32,746 | 71,194 |
Non-U.S. Subsidiaries | |||||||||||
Revenues: | |||||||||||
Gross premiums written | 201,726 | 345,392 | 173,563 | ||||||||
Net premiums written | 201,690 | 345,342 | 172,504 | ||||||||
Net premiums earned | 212,325 | 283,448 | 168,743 | ||||||||
Net investment income | 48,807 | 44,534 | 31,420 | ||||||||
Net realized investment gains (losses) | (89) | (1,039) | 926 | ||||||||
Other income (loss) | (224) | (93) | (65) | ||||||||
Total revenues | 260,819 | 326,850 | 201,024 | ||||||||
Losses and Expenses: | |||||||||||
Net losses and loss adjustment expenses | 95,812 | 141,444 | 62,669 | ||||||||
Acquisition costs and other underwriting expenses | 94,749 | 122,999 | 70,479 | ||||||||
Corporate and other operating expenses | 9,035 | 5,928 | 5,243 | ||||||||
Interest expense | 8,312 | 4,492 | 852 | ||||||||
Income (loss) before income taxes | 52,911 | 51,987 | 61,781 | ||||||||
U.S. Subsidiaries | |||||||||||
Revenues: | |||||||||||
Gross premiums written | 506,061 | 540,500 | 229,979 | ||||||||
Net premiums written | 269,250 | 155,902 | 100,677 | ||||||||
Net premiums earned | 256,140 | 220,695 | 99,776 | ||||||||
Net investment income | 19,341 | 18,011 | 16,715 | ||||||||
Net realized investment gains (losses) | 21,810 | (2,335) | 34,934 | ||||||||
Other income (loss) | 10,569 | 3,493 | 620 | ||||||||
Total revenues | 307,860 | 239,864 | 152,045 | ||||||||
Losses and Expenses: | |||||||||||
Net losses and loss adjustment expenses | 168,191 | 133,924 | 74,892 | ||||||||
Acquisition costs and other underwriting expenses | 101,901 | 78,304 | 39,140 | ||||||||
Corporate and other operating expenses | 8,303 | 18,520 | 9,316 | ||||||||
Interest expense | 34,758 | 28,357 | 19,284 | ||||||||
Income (loss) before income taxes | (5,293) | (19,241) | 9,413 | ||||||||
Eliminations | |||||||||||
Revenues: | |||||||||||
Gross premiums written | (141,942) | (295,659) | (112,289) | ||||||||
Net investment income | (34,165) | (27,936) | (19,314) | ||||||||
Total revenues | (34,165) | (27,936) | (19,314) | ||||||||
Losses and Expenses: | |||||||||||
Interest expense | $ (34,165) | $ (27,936) | $ (19,314) |
Components of Income Tax Expens
Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current income tax expense (benefit): | |||
Non-resident withholding | $ 6,250 | ||
Foreign | $ 330 | $ 263 | 129 |
U.S. Federal | 147 | (1,785) | 2,787 |
Total current income tax expense (benefit) | 477 | (1,522) | 9,166 |
Deferred income tax benefit: | |||
U.S. Federal | (2,727) | (7,201) | (828) |
Total deferred income tax benefit | (2,727) | (7,201) | (828) |
Actual taxes on continuing operations | $ (2,250) | $ (8,723) | $ 8,338 |
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 | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax [Line Items] | |||
Expected tax provision at weighted average rate | $ (1,496) | $ (6,434) | $ 3,465 |
Adjustments: | |||
Non-resident withholding | 6,250 | ||
Tax exempt interest | (394) | (441) | (472) |
Dividend exclusion | (617) | (784) | (1,340) |
Other | 257 | (1,064) | 435 |
Actual taxes on continuing operations | $ (2,250) | $ (8,723) | $ 8,338 |
Expected tax provision at weighted average | (3.10%) | (19.60%) | 4.90% |
Adjustments: | |||
Non-resident withholding | 8.80% | ||
Tax exempt interest, % of Pre-Tax Income | (0.80%) | (1.30%) | (0.70%) |
Dividend exclusion, % of Pre-Tax Income | (1.30%) | (2.40%) | (1.90%) |
Other, % of Pre-Tax Income | 0.50% | (3.30%) | 0.60% |
Actual taxes on continuing operations, % of Pre-Tax Income | (4.70%) | (26.60%) | 11.70% |
Tax Effects of Temporary Differ
Tax Effects of Temporary Differences That Give Rise to Significant Portions of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Discounted unpaid losses and loss adjustment expenses | $ 7,015 | $ 8,222 |
Unearned premiums | 8,802 | 7,884 |
Section 163(j) carryforward | 8,075 | 3,135 |
Alternative minimum tax credit carryover | 10,957 | 10,868 |
Net operating loss carryforward | 3,205 | 1,934 |
Partnership K1 basis differences | 238 | 245 |
Capital gain on derivative instruments | 4,033 | 5,340 |
Investment impairments | 3,419 | 2,635 |
Stock options | 2,820 | 2,635 |
Stat-to-GAAP reinsurance reserve | 1,337 | 1,364 |
Intercompany transfers | 808 | 1,612 |
Depreciation and amortization | 36 | |
Other | 4,986 | 4,545 |
Total deferred tax assets | 55,695 | 50,455 |
Deferred tax liabilities: | ||
Purchase accounting adjustment for American Reliable | 6,095 | 6,095 |
Intangible assets | 3,942 | 3,893 |
Unrealized gain on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income | 352 | 3,896 |
Investment basis differences | 484 | 1,034 |
Deferred acquisition costs | 2,941 | 642 |
Depreciation and amortization | 119 | |
Other | 805 | 208 |
Total deferred tax liabilities | 14,738 | 15,768 |
Total net deferred tax assets | $ 40,957 | $ 34,687 |
Summarized Activity in Liabilit
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Balance at beginning of period | $ 680,047 | $ 675,472 | $ 779,466 |
Less:Ceded reinsurance receivables | 108,130 | 123,201 | 192,491 |
Net balance at beginning of period | 571,917 | 552,271 | 586,975 |
Purchased reserves, gross | 2,007 | 89,489 | |
Less: Purchased reserves ceded | (45) | 12,800 | |
Purchase reserves, net of third party reinsurance | 2,052 | 76,689 | |
Incurred losses and loss adjustment expenses related to: | |||
Current year | 321,255 | 310,066 | 153,994 |
Prior years | (57,252) | (34,698) | (16,433) |
Total incurred losses and loss adjustment expenses | 264,003 | 275,368 | 137,561 |
Paid losses and loss adjustment expenses related to: | |||
Current year | 177,006 | 164,058 | 55,485 |
Prior years | 140,363 | 168,353 | 116,780 |
Total paid losses and loss adjustment expenses | 317,369 | 332,411 | 172,265 |
Net balance at end of period | 520,603 | 571,917 | 552,271 |
Plus:Ceded reinsurance receivables | 130,439 | 108,130 | 123,201 |
Balance at end of period | $ 651,042 | $ 680,047 | $ 675,472 |
Liability for Unpaid Losses 111
Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (57,252) | $ (34,698) | $ (16,433) | |
Unpaid losses and loss adjustment expense reserves | 651,042 | 680,047 | 675,472 | $ 779,466 |
Unpaid losses and loss adjustment expense reserves, net | 520,603 | 571,917 | 552,271 | 586,975 |
Unpaid losses and loss adjustment expenses reserves | $ 29,890 | $ 30,529 | $ 31,185 | $ 23,038 |
Survival ratio on a gross basis for open A&E claims, periods | 13 years 9 months 18 days | 15 years | 10 years 9 months 18 days | |
Survival ratio on net basis for open A&E claims, periods | 19 years 3 months 18 days | 16 years 9 months 18 days | 8 years 4 months 24 days | |
Construction Defect | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Unpaid losses and loss adjustment expense reserves | $ 54,500 | $ 70,400 | ||
Unpaid losses and loss adjustment expense reserves, net | 48,600 | 62,200 | ||
IBNR Reserves | Asbestos | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Unpaid losses and loss adjustment expenses reserves | 26,700 | 26,000 | $ 26,400 | |
Case Reserves | Asbestos | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Unpaid losses and loss adjustment expenses reserves | 3,200 | 4,500 | 4,800 | |
Commercial Lines Segment | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (43,800) | (25,600) | (12,500) | |
Commercial Lines Segment | Property Lines | Accident Years 2009, 2012, 2015, 2008, 2011, and 2013 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 800 | |||
Commercial Lines Segment | Property Lines | Accident Years 2009, 2012, 2015, 2008, 2011, and 2013 | Non-catastrophe | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 500 | |||
Commercial Lines Segment | Property Lines | Accident Years 2009, 2012, 2015, 2008, 2011, and 2013 | Catastrophe segment | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 300 | |||
Commercial Lines Segment | Property Lines | Accident Years 2007, 2012 and 2013 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 2,100 | |||
Commercial Lines Segment | Marine | Accident Years 2010 through 2012 | Casualty Insurance | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,400) | |||
Commercial Lines Segment | General Liability | Casualty Insurance | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (43,800) | (20,400) | ||
Commercial Lines Segment | General Liability | Accident years 2005 through 2015 | Construction Defect | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (9,400) | |||
Commercial Lines Segment | General Liability | Accident years 2004 through 2014 | Other General Liability | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (34,400) | (14,500) | ||
Commercial Lines Segment | General Liability | Accident years 2008 through 2014 | Construction Defect | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (5,900) | |||
Commercial Lines Segment | General Liability | Accident Years 2001, 2007 through 2010, and 2013 | Casualty Insurance | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (3,100) | |||
Commercial Lines Segment | Professional | Accident years 2006 through 2011 | Casualty Insurance | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (6,200) | |||
Commercial Lines Segment | Professional | Accident Years 2007 through 2011 | Casualty Insurance | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (19,400) | |||
Commercial Lines Segment | Asbestos and Environmental | Accident Years Prior to 1990 | Casualty Insurance | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 7,100 | |||
Commercial Lines Segment | Umbrella Lines | Accident Years 2002 through 2007 | Casualty Insurance | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (2,700) | |||
Commercial Lines Segment | Commercial Auto Segment | Accident years 2011 through 2013 | Casualty Insurance | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 3,600 | |||
Reinsurance Operations | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (13,500) | (9,100) | $ (3,900) | |
Reinsurance Operations | Property Lines | Accident years 2010 through 2015 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (13,500) | |||
Reinsurance Operations | Property Lines | Accident years 2011 through 2014 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (6,800) | |||
Reinsurance Operations | Marine | Accident years 2010 and 2011 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (2,800) | |||
Reinsurance Operations | Workers Compensation | Accident years 2010 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ 1,000 |
Gross Reserves for Asbestos and
Gross Reserves for Asbestos and Environmental Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statutory Reserve [Line Items] | |||
Gross reserve for A&E losses and loss adjustment expenses-beginning of period | $ 53,824 | $ 56,535 | $ 50,155 |
Less: Payments | 3,300 | 2,714 | 5,293 |
Gross reserves for A&E losses and loss adjustment expenses-end of period | 51,919 | 53,824 | 56,535 |
Case Reserves | |||
Statutory Reserve [Line Items] | |||
Plus: Incurred losses and loss adjustment expenses | (669) | 2,666 | 4,333 |
IBNR Reserves | |||
Statutory Reserve [Line Items] | |||
Plus: Incurred losses and loss adjustment expenses | $ 2,064 | $ (2,663) | $ 7,340 |
Net Reserves for Asbestos and E
Net Reserves for Asbestos and Environmental Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statutory Reserve [Line Items] | |||
Net reserve for A&E losses and loss adjustment expenses-beginning of period | $ 30,529 | $ 31,185 | $ 23,038 |
Less: Payments | 1,145 | 657 | 2,848 |
Net reserves for A&E losses and loss adjustment expenses-end of period | 29,890 | 30,529 | 31,185 |
Case Reserves | |||
Statutory Reserve [Line Items] | |||
Plus: Incurred losses and loss adjustment expenses | (125) | 395 | 2,754 |
IBNR Reserves | |||
Statutory Reserve [Line Items] | |||
Plus: Incurred losses and loss adjustment expenses | $ 631 | $ (394) | $ 8,241 |
Incurred Claims and Allocated C
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Detail) $ in Thousands | Dec. 31, 2016USD ($)Claim | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | Dec. 31, 2007USD ($) | |
Commercial Lines Segment | Property Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 194,887 | ||||||||||
Commercial Lines Segment | Property Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 65,375 | $ 65,529 | $ 64,459 | ||||||||
IBNR | [1] | $ 3,247 | |||||||||
Cumulative Number of Reported Claims | Claim | 6,388 | ||||||||||
Commercial Lines Segment | Property Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 65,880 | 64,693 | |||||||||
IBNR | [1] | $ 5,817 | |||||||||
Cumulative Number of Reported Claims | Claim | 4,864 | ||||||||||
Commercial Lines Segment | Property Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 63,632 | ||||||||||
IBNR | [1] | $ 11,855 | |||||||||
Cumulative Number of Reported Claims | Claim | 4,047 | ||||||||||
Commercial Lines Segment | Casualty Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 889,577 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2007 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 205,257 | 208,412 | 210,327 | $ 215,716 | $ 221,276 | $ 219,709 | $ 229,255 | $ 240,974 | $ 238,374 | $ 222,751 | |
IBNR | [1] | $ 11,119 | |||||||||
Cumulative Number of Reported Claims | Claim | 8,690 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2008 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 129,740 | 134,352 | 138,558 | 146,142 | 148,019 | 149,564 | 160,325 | 170,855 | 138,417 | ||
IBNR | [1] | $ 10,002 | |||||||||
Cumulative Number of Reported Claims | Claim | 6,065 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2009 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 89,939 | 92,666 | 96,206 | 104,392 | 104,803 | 104,518 | 96,956 | 93,748 | |||
IBNR | [1] | $ 9,537 | |||||||||
Cumulative Number of Reported Claims | Claim | 3,774 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 83,997 | 90,683 | 94,484 | 101,113 | 102,252 | 101,830 | 79,188 | ||||
IBNR | [1] | $ 11,891 | |||||||||
Cumulative Number of Reported Claims | Claim | 3,287 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 96,761 | 109,420 | 115,193 | 117,288 | 117,602 | 115,441 | |||||
IBNR | [1] | $ 18,682 | |||||||||
Cumulative Number of Reported Claims | Claim | 3,478 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 54,674 | 63,123 | 65,637 | 65,911 | 61,340 | ||||||
IBNR | [1] | $ 14,766 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,140 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 65,220 | 66,855 | 68,089 | 63,807 | |||||||
IBNR | [1] | $ 14,390 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,278 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 56,620 | 58,873 | 61,325 | ||||||||
IBNR | [1] | $ 19,267 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,089 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 55,141 | 55,628 | |||||||||
IBNR | [1] | $ 24,547 | |||||||||
Cumulative Number of Reported Claims | Claim | 1,715 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 52,228 | ||||||||||
IBNR | [1] | $ 37,773 | |||||||||
Cumulative Number of Reported Claims | Claim | 1,247 | ||||||||||
Personal Lines Segment | Property Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 282,527 | ||||||||||
Personal Lines Segment | Property Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 137,611 | 139,508 | |||||||||
IBNR | [1] | $ 3,299 | |||||||||
Cumulative Number of Reported Claims | Claim | 16,182 | ||||||||||
Personal Lines Segment | Property Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 144,916 | ||||||||||
IBNR | [1] | $ 14,179 | |||||||||
Cumulative Number of Reported Claims | Claim | 15,724 | ||||||||||
Personal Lines Segment | Casualty Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 45,376 | ||||||||||
Personal Lines Segment | Casualty Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 21,986 | 20,566 | |||||||||
IBNR | [1] | $ 8,243 | |||||||||
Cumulative Number of Reported Claims | Claim | 1,057 | ||||||||||
Personal Lines Segment | Casualty Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 23,390 | ||||||||||
IBNR | [1] | $ 16,465 | |||||||||
Cumulative Number of Reported Claims | Claim | 745 | ||||||||||
Reinsurance Operations | Property Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Cumulative Number of Reported Claims | Claim | 109,192 | ||||||||||
Reinsurance Operations | Property Insurance | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 14,562 | 14,562 | 14,562 | 14,562 | 14,091 | 15,041 | 13,486 | ||||
IBNR | [1] | 248 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 24,912 | 24,994 | 25,994 | 26,916 | 28,547 | 30,963 | |||||
IBNR | [1] | 1,194 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 8,497 | 8,579 | 9,279 | 10,578 | 10,388 | ||||||
IBNR | [1] | 616 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 6,698 | 8,197 | 9,948 | 15,153 | |||||||
IBNR | [1] | 1,008 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 14,139 | 18,861 | 21,787 | ||||||||
IBNR | [1] | 1,979 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 16,738 | 19,877 | |||||||||
IBNR | [1] | 7,364 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 23,646 | ||||||||||
IBNR | [1] | 17,739 | |||||||||
Reinsurance Operations | Casualty Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 176,560 | ||||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2007 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,944 | 3,894 | 4,931 | 4,931 | 4,705 | 6,352 | 6,351 | 6,359 | 6,396 | $ 3,645 | |
IBNR | [1] | 529 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2008 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 9,835 | 9,435 | 10,340 | 10,340 | 10,167 | 8,997 | 8,988 | 8,758 | $ 8,906 | ||
IBNR | [1] | 476 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2009 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 31,453 | 31,419 | 31,340 | 30,850 | 30,533 | 25,444 | 23,818 | $ 20,706 | |||
IBNR | [1] | 391 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 60,701 | 61,792 | 61,062 | 62,628 | 57,916 | 53,279 | $ 41,831 | ||||
IBNR | [1] | 2,755 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 43,657 | 46,510 | 47,980 | 44,692 | 48,846 | $ 45,726 | |||||
IBNR | [1] | 2,860 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 17,360 | 17,579 | 17,123 | 15,624 | $ 15,865 | ||||||
IBNR | [1] | 1,018 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,013 | 1,172 | 1,262 | $ 1,224 | |||||||
IBNR | [1] | 927 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,060 | 2,095 | $ 1,988 | ||||||||
IBNR | [1] | 1,995 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,911 | $ 2,908 | |||||||||
IBNR | [1] | 2,782 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,626 | ||||||||||
IBNR | [1] | $ 3,627 | |||||||||
[1] | Incurred-but-not-reported liabilities plus expected development on reported claims |
Supplementary Information about
Supplementary Information about Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 |
Claims Development [Line Items] | ||||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | $ 490,558 | |||||||||
Commercial Lines Segment | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 159,213 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 41,052 | |||||||||
Commercial Lines Segment | Property Insurance | All outstanding liabilities before 2014, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 5,378 | |||||||||
Commercial Lines Segment | Property Insurance | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 61,085 | $ 59,049 | $ 45,771 | |||||||
Commercial Lines Segment | Property Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 58,134 | 41,972 | ||||||||
Commercial Lines Segment | Property Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 39,994 | |||||||||
Commercial Lines Segment | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 640,791 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 311,274 | |||||||||
Commercial Lines Segment | Casualty Insurance | All outstanding liabilities before 2007, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 62,487 | |||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2007 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 191,564 | 190,102 | 188,162 | $ 184,028 | $ 174,488 | $ 160,712 | $ 136,203 | $ 96,489 | $ 46,819 | $ 14,250 |
Commercial Lines Segment | Casualty Insurance | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 117,639 | 116,094 | 114,546 | 110,145 | 100,369 | 86,889 | 65,700 | 34,172 | 7,844 | |
Commercial Lines Segment | Casualty Insurance | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 76,413 | 73,831 | 71,108 | 65,721 | 53,738 | 37,653 | 19,154 | 5,564 | ||
Commercial Lines Segment | Casualty Insurance | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 66,593 | 64,693 | 58,913 | 50,520 | 34,659 | 19,926 | 5,503 | |||
Commercial Lines Segment | Casualty Insurance | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 72,247 | 64,885 | 56,562 | 41,282 | 21,325 | 5,451 | ||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 35,776 | 30,883 | 22,456 | 11,884 | 3,500 | |||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 37,657 | 28,955 | 17,881 | 6,400 | ||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 25,133 | 14,846 | 3,968 | |||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 13,922 | 2,958 | ||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,847 | |||||||||
Personal Lines Segment | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 254,641 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 30,424 | |||||||||
Personal Lines Segment | Property Insurance | All outstanding liabilities before 2015, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 2,538 | |||||||||
Personal Lines Segment | Property Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 133,093 | 109,953 | ||||||||
Personal Lines Segment | Property Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 121,548 | |||||||||
Personal Lines Segment | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 13,213 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 43,500 | |||||||||
Personal Lines Segment | Casualty Insurance | All outstanding liabilities before 2015, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 11,338 | |||||||||
Personal Lines Segment | Casualty Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 9,418 | 3,817 | ||||||||
Personal Lines Segment | Casualty Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,795 | |||||||||
Reinsurance Operations | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 67,352 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 42,021 | |||||||||
Reinsurance Operations | Property Insurance | All outstanding liabilities before 2010, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 181 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 14,249 | 14,231 | 14,199 | 14,043 | 12,201 | 11,678 | 456 | |||
Reinsurance Operations | Property Insurance | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 22,771 | 22,426 | 22,060 | 20,698 | 19,274 | 12,044 | ||||
Reinsurance Operations | Property Insurance | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 7,527 | 7,648 | 7,221 | 5,481 | 1,127 | |||||
Reinsurance Operations | Property Insurance | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,111 | 5,835 | 4,008 | 723 | ||||||
Reinsurance Operations | Property Insurance | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 10,460 | 9,035 | 2,243 | |||||||
Reinsurance Operations | Property Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,163 | 742 | ||||||||
Reinsurance Operations | Property Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,071 | |||||||||
Reinsurance Operations | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 154,273 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 22,287 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2007 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,733 | 2,727 | 2,678 | 2,674 | 2,452 | 1,900 | 1,811 | 852 | $ 78 | |
Reinsurance Operations | Casualty Insurance | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 8,919 | 8,875 | 8,713 | 6,832 | 5,648 | 5,149 | 1,955 | 627 | ||
Reinsurance Operations | Casualty Insurance | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 31,019 | 30,141 | 15,104 | 13,652 | 12,597 | 11,064 | 9,759 | $ 1,986 | ||
Reinsurance Operations | Casualty Insurance | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 55,848 | 55,315 | 39,123 | 36,090 | 30,754 | 21,447 | $ 10,185 | |||
Reinsurance Operations | Casualty Insurance | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 39,815 | 38,907 | 36,020 | 28,495 | 20,072 | $ 7,968 | ||||
Reinsurance Operations | Casualty Insurance | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 15,696 | 15,534 | 11,658 | 9,435 | $ 5,312 | |||||
Reinsurance Operations | Casualty Insurance | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 65 | 62 | 50 | $ 123 | ||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 50 | 47 | $ 88 | |||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 128 | $ 107 |
Supplementary Information of Av
Supplementary Information of Average Historical Claims (Detail) | Dec. 31, 2016 |
Commercial Lines Segment | Property Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 65.50% |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 22.40% |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 3.10% |
Commercial Lines Segment | Casualty Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 6.70% |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 17.40% |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 20.20% |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 16.70% |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 10.50% |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 6.90% |
Average annual percentage payout of incurred claims by age, net of reinsurance year seven | 3.30% |
Average annual percentage payout of incurred claims by age, net of reinsurance year eight | 2.00% |
Average annual percentage payout of incurred claims by age, net of reinsurance year nine | 1.10% |
Average annual percentage payout of incurred claims by age, net of reinsurance year ten | 0.70% |
Personal Lines Segment | Property Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 81.90% |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 16.80% |
Personal Lines Segment | Casualty Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 16.80% |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 25.50% |
Reinsurance Operations | Property Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 14.90% |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 46.80% |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 13.40% |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 3.10% |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 0.40% |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 0.80% |
Average annual percentage payout of incurred claims by age, net of reinsurance year seven | 0.10% |
Reinsurance Operations | Casualty Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 9.20% |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 10.50% |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 10.80% |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 15.70% |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 3.90% |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 11.90% |
Average annual percentage payout of incurred claims by age, net of reinsurance year seven | 18.40% |
Average annual percentage payout of incurred claims by age, net of reinsurance year eight | 1.50% |
Average annual percentage payout of incurred claims by age, net of reinsurance year nine | 0.80% |
Average annual percentage payout of incurred claims by age, net of reinsurance year ten | 0.10% |
Reconciliation of Net Incurred
Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and Loss Adjustment Expenses in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | $ 490,558 | |||
Reinsurance recoverable on unpaid claims | 128,692 | |||
Total other outstanding liabilities | 31,792 | |||
Total gross liability for unpaid losses and loss adjustment expenses | 651,042 | $ 680,047 | $ 675,472 | $ 779,466 |
Commercial Lines Segment | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Ceded Allowance | 8,040 | |||
Unallocated claims adjustment expenses | 17,795 | |||
Purchase accounting adjustment | (2,000) | |||
Loss Clearing | (910) | |||
Commercial Lines Segment | Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 41,052 | |||
Reinsurance recoverable on unpaid claims | 6,439 | |||
Commercial Lines Segment | Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 311,274 | |||
Reinsurance recoverable on unpaid claims | 76,956 | |||
Personal Lines Segment | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Fronted business ceded to Assurant | 3,748 | |||
Unallocated claims adjustment expenses | 4,685 | |||
Loss Clearing | (68) | |||
Personal Lines Segment | Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 30,424 | |||
Reinsurance recoverable on unpaid claims | 39,708 | |||
Personal Lines Segment | Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 43,500 | |||
Reinsurance recoverable on unpaid claims | 5,352 | |||
Reinsurance Operations | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unallocated claims adjustment expenses | 646 | |||
Other | (144) | |||
Reinsurance Operations | Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 42,021 | |||
Reinsurance Operations | Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 22,287 | |||
Reinsurance recoverable on unpaid claims | $ 237 |
Outstanding Debt Consisted (Det
Outstanding Debt Consisted (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Debt | $ 163,143 | $ 172,034 | |
Margin borrowing facilities | |||
Debt Instrument [Line Items] | |||
Debt | 66,646 | 75,646 | |
7.75% Subordinated Notes due 2045 | |||
Debt Instrument [Line Items] | |||
Debt | [1] | $ 96,497 | $ 96,388 |
[1] | As of December 31, 2016 and 2015, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.5 million and $3.6 million, respectively. |
Outstanding Debt Consisted (Par
Outstanding Debt Consisted (Parenthetical) (Detail) - 7.75% Subordinated Notes due 2045 | 12 Months Ended |
Dec. 31, 2016 | |
Debt Instrument [Line Items] | |
Subordinated Notes percentage | 7.75% |
Subordinated Notes due date | 2,045 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 12, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||||
Debt | $ 163,143 | $ 172,034 | |||
Interest expense | 8,905 | 4,913 | $ 822 | ||
Margin borrowing facilities | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 66,646 | $ 75,646 | |||
Stated interest rate | 1.60% | 1.30% | |||
Collateral deposited to support borrowing | $ 85,900 | ||||
Interest expense | 1,000 | $ 1,900 | $ 700 | ||
7.75% Subordinated Notes due 2045 | |||||
Debt Instrument [Line Items] | |||||
Debt | [1] | $ 96,497 | 96,388 | ||
Stated interest rate | 7.75% | ||||
Interest expense | $ 7,900 | $ 3,000 | |||
Debt instrument, face amount | $ 100,000 | ||||
Debt instrument, interest rate terms | Payable quarterly in arrears on February 15, May 15, August 15, and November 15 of each year | ||||
Debt instrument, maturity date | Aug. 15, 2045 | ||||
Debt instrument, redemption description | The Company has the right to redeem the notes in $25 increments, in whole or in part, on and after August 15, 2020, or on any interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption. | ||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | ||||
Notes maturity period | 30 years | ||||
Deferred issuance costs | $ 3,700 | ||||
[1] | As of December 31, 2016 and 2015, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.5 million and $3.6 million, respectively. |
Amounts Recorded for Margin Bor
Amounts Recorded for Margin Borrowing Facilities and 7.75% Subordinated Notes (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Net Carrying Amount | $ 163,143 | $ 172,034 | |
7.75% Subordinated Notes due 2045 | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 100,000 | 100,000 | |
Unamortized Debt Issuance Costs | (3,503) | (3,612) | |
Net Carrying Amount | [1] | $ 96,497 | $ 96,388 |
[1] | As of December 31, 2016 and 2015, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.5 million and $3.6 million, respectively. |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Nov. 07, 2016 | Oct. 29, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Equity, Class of Treasury Stock [Line Items] | ||||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Additional paid-in capital | $ 430,283,000 | $ 430,283,000 | $ 529,872,000 | |||
Additional Paid-in Capital | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Reduction in treasury shares due to redomestication | $ 103,248,000 | 103,248,000 | ||||
Treasury Shares | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Reduction in treasury shares due to redomestication | $ (103,248,000) | |||||
Redemption Agreement | Fox Paine and Company | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Ordinary shares agreed to redeem, shares | 8,260,870 | |||||
Ordinary shares agreed to redeem | $ 190,000,000 | |||||
Additional Redemption Agreement | Fox Paine and Company | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Ordinary shares agreed to redeem, shares | 3,397,031 | |||||
Ordinary shares agreed to redeem | $ 78,100,000 | |||||
Redemption agreement expiration date | Dec. 31, 2019 | |||||
Ordinary shares agreed to redeem, percentage of annual increase | 3.00% | |||||
Global Indemnity Limited | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Reduction in treasury shares due to redomestication | (600,000) | |||||
Stock Issued during Period | 17,597,230 | |||||
Distributable reserves | 368,300,000 | $ 368,300,000 | ||||
Additional paid-in capital | 430,300,000 | 430,300,000 | ||||
Global Indemnity Limited | Maximum | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Maximum dividends and distributions allowable under law | $ 797,900,000 | $ 797,900,000 | ||||
Ordinary Shares B | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Ordinary shares, cancelled | 4,133,366 | |||||
Ordinary shares, par value | $ 0.0001 | |||||
Ordinary shares agreed to redeem, shares | 0 | 0 | 0 | |||
B ordinary shares converted to A ordinary shares | 7,928,004 | |||||
Ordinary Shares B | Global Indemnity Limited | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Ordinary shares, par value | $ 0.0001 | |||||
Stock Issued during Period | 4,133,366 | |||||
Ordinary Shares A | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Ordinary shares, cancelled | 13,463,864 | |||||
Ordinary shares, par value | $ 0.0001 | |||||
Reduction in treasury shares due to redomestication | $ 1,000 | |||||
B ordinary shares converted to A ordinary shares | (7,928,004) | |||||
Ordinary Shares A | Treasury Shares | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, number of shares purchased | 28,099 | 11,895 | 5,444 | |||
Stock repurchase program, value of shares purchased | $ 805,000 | $ 333,000 | $ 139,000 | |||
Ordinary Shares A | Global Indemnity Limited | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Ordinary shares, par value | $ 0.0001 | |||||
Stock Issued during Period | 13,463,864 |
Information with Respect to Ord
Information with Respect to Ordinary Shares that were Surrendered, Repurchased or Redeemed (Detail) - Ordinary Shares A - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | 28,099 | 8,272,765 | |
Average Price Paid Per Share | $ 28.64 | $ 23.01 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | $ 0 | |
January 1-31, 2016 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1],[2] | 12,410 | |
Average Price Paid Per Share | [1] | $ 29.02 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | ||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | ||
February 1 - 29, 2016 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1],[2] | 15,093 | |
Average Price Paid Per Share | [1] | $ 28.25 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | ||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | ||
May 1 - 31, 2016 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1],[2] | 596 | |
Average Price Paid Per Share | [1] | $ 30.56 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | ||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | ||
January 1-31, 2015 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1],[2] | 9,009 | |
Average Price Paid Per Share | [1] | $ 28.37 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | ||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | ||
March 1-31, 2015 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1],[2] | 2,290 | |
Average Price Paid Per Share | [1] | $ 26.98 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | ||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | ||
May 1-31, 2015 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1],[2] | 596 | |
Average Price Paid Per Share | [1] | $ 27.01 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | ||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | ||
November 1-30, 2015 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1],[3] | 8,260,870 | |
Average Price Paid Per Share | [1] | $ 23 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | ||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | ||
[1] | Based on settlement date. | ||
[2] | Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. | ||
[3] | Of these shares, 7,928,004 shares were converted from B ordinary shares to A ordinary shares. Of the 7,928,004 converted shares, 4,555,061 were redeemed and 3,372,943 went into a liquidating trust. |
Information with Respect to 124
Information with Respect to Ordinary Shares that were Surrendered, Repurchased or Redeemed (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2015shares | |
Equity, Class of Treasury Stock [Line Items] | |
Redeemed number of shares | 4,555,061 |
Number of shares went in to liquidating trust | 3,372,943 |
Ordinary Shares B | |
Equity, Class of Treasury Stock [Line Items] | |
B ordinary shares converted to A ordinary shares | 7,928,004 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Distribution received from the limited partnership | $ 9,450,000 | $ 5,959,000 | |
Fox Paine and Company | |||
Related Party Transaction [Line Items] | |||
Company's total outstanding voting power | 84.00% | ||
Minimum voting power required to nominate Directors | 25.00% | ||
Management fees | $ 2,100,000 | 1,900,000 | $ 1,900,000 |
Unpaid management fees | 4,600,000 | 2,600,000 | |
Reimbursement expense related to redemption of ordinary shares | $ 1,200,000 | ||
Fox Paine and Company | Global Indemnity Group Inc | American Reliable Insurance Company | |||
Related Party Transaction [Line Items] | |||
Investment bank fee as a percentage of the amount paid plus required capital to operate American Reliable on a standalone basis | 3.00% | ||
Investment advisory fee | $ 1,500,000 | ||
Aggregate investment advisory fee | $ 6,500,000 | ||
Ordinary shares of Global Indemnity issued to pay fees | 267,702 | ||
Fox Paine Capital Fund II Limited Partner | Global Indemnity Reinsurance | |||
Related Party Transaction [Line Items] | |||
Distribution received from the limited partnership | 0 | $ 800,000 | 0 |
Cozen O'Connor | |||
Related Party Transaction [Line Items] | |||
Cost incurred for legal services rendered | 700,000 | 200,000 | |
Crystal & Company | |||
Related Party Transaction [Line Items] | |||
Brokerage fee incurred | $ 200,000 | $ 200,000 | $ 200,000 |
Estimated Earned Premium and In
Estimated Earned Premium and Incurred Losses (Detail) - Hiscox Bermuda - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Assumed earned premium | $ 27 | $ 2,266 | $ 6,383 |
Assumed losses and loss adjustment expenses | $ (527) | $ 509 | $ 763 |
Net Payable Balances due from G
Net Payable Balances due from Global Indemnity Reinsurance (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Hiscox Bermuda | ||
Related Party Transaction [Line Items] | ||
Net payable balance | $ (107) | $ (110) |
Commitments And Contingencies -
Commitments And Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2016 | ||
Commitments and Contingencies [Line Items] | |||||
Commitment to purchase alternative investment | $ 40,000,000 | $ 50,000,000 | $ 40,000,000 | ||
Future Funding Commitments | 24,768,000 | $ 20,014,000 | |||
Rental expense under operating leases, net of sub-lease income | 3,700,000 | 3,500,000 | 2,600,000 | ||
Rental expense under operating leases, sub-lease income | 20,000 | 70,000 | $ 40,000 | ||
European Non-Performing Loan Fund, LP | |||||
Commitments and Contingencies [Line Items] | |||||
Funded commitment amount | 34,300,000 | ||||
Future Funding Commitments | [1] | 15,714,000 | $ 20,014,000 | ||
Private Middle Market Loans, LLC | |||||
Commitments and Contingencies [Line Items] | |||||
Funded commitment amount | 30,900,000 | ||||
Future Funding Commitments | [2] | 9,054,000 | |||
Unfunded Commitments | European Non-Performing Loan Fund, LP | |||||
Commitments and Contingencies [Line Items] | |||||
Future Funding Commitments | 15,700,000 | ||||
Unfunded Commitments | Private Middle Market Loans, LLC | |||||
Commitments and Contingencies [Line Items] | |||||
Future Funding Commitments | $ 9,100,000 | ||||
[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. Based on the terms of the partnership agreement, the Company anticipates its interest in this partnership to be redeemed by 2020. | ||||
[2] | This limited partnership provides financing for 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. Based on the terms of the investment management agreement, the Company anticipates its interest to be redeemed no later than 2024. |
Future Minimum Cash Payments Un
Future Minimum Cash Payments Under Non-cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Future Minimum Payments Under Non-Cancelable Operating Leases With Initial Terms Of One-Year Or More [Line Items] | |
2,017 | $ 3,227 |
2,018 | 3,185 |
2,019 | 2,157 |
2,020 | 117 |
Total | $ 8,686 |
Share-Based Compensation Pla130
Share-Based Compensation Plans - Additional Information (Detail) - USD ($) | Jun. 12, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2016 | Jun. 11, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Tax expense resulting from stock-based compensation deductions in excess of amounts reported for financial reporting purposes | $ 100,000 | $ 50,000 | $ 40,000 | ||||
Number of options exercisable | 450,000 | 450,000 | |||||
Stock options awarded | 0 | 200,000 | 325,000 | ||||
Strike price per share | $ 28.37 | $ 31.74 | |||||
Stock options forfeited | 200,000 | 125,000 | |||||
Stock options forfeited, strike price per share | $ 28.37 | $ 19.60 | |||||
Compensation expense, options | $ 300,000 | $ 400,000 | $ 300,000 | ||||
Fair value of company's shares | $ 38.21 | $ 38.21 | |||||
Weighted average fair value of options granted | $ 8.69 | $ 7.92 | |||||
Compensation expense, restricted stock | $ 3,200,000 | $ 3,500,000 | $ 2,600,000 | ||||
Exercise price applicable | $ 25.13 | $ 25.94 | $ 25.38 | $ 18.62 | $ 25.13 | ||
Subject to a clawback which is based on the remeasurement of accident year results on the third anniversary after the options provisionally vest | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options exercisable | 250,000 | 250,000 | |||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense for non-vested restricted stock | $ 2,900,000 | $ 2,900,000 | |||||
Weighted average life of non-vested restricted stock | 1 year 4 months 24 days | ||||||
Number of shares issued | 156,531 | 174,828 | 132,302 | 1,116,348 | 1,580,009 | ||
Weighted average fair value per share | $ 29.44 | $ 28.24 | $ 25.67 | ||||
Restricted Stock | Key Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares issued | 121,346 | 138,507 | 95,694 | 711,068 | 1,066,615 | ||
Weighted average fair value per share | $ 28.97 | $ 28.37 | $ 25.37 | ||||
Restricted Stock | Key Employees | Time Based Vesting | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares issued | 96,585 | 83,875 | 78,166 | ||||
Restricted Stock | Key Employees | Stock vest first anniversary of the grant | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of shares vested on each anniversary of the grant date | 16.50% | 16.50% | 16.50% | ||||
Vesting period | 1 year | 1 year | 1 year | ||||
Restricted Stock | Key Employees | Stock vest second anniversary of the grant | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of shares vested on each anniversary of the grant date | 16.50% | 16.50% | 16.50% | ||||
Vesting period | 2 years | 2 years | 2 years | ||||
Restricted Stock | Key Employees | Stock vest third anniversary of the grant | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of shares vested on each anniversary of the grant date | 17.00% | 17.00% | 17.00% | ||||
Vesting period | 3 years | 3 years | 3 years | ||||
Restricted Stock | Key Employees | Vesting Schedule Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of shares vested on each anniversary of the grant date | 100.00% | 100.00% | 100.00% | ||||
Vesting period | 3 years | 3 years | 3 years | ||||
Percentage of stock award subject to vesting | 50.00% | 50.00% | 50.00% | ||||
Restricted Stock | Key Employees | First Vesting | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares issued | 5,671 | ||||||
Percentage of shares vested on each anniversary of the grant date | 33.33% | ||||||
Vesting period | 3 years | ||||||
Restricted Stock | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares issued | 11,199 | 10,574 | 11,857 | ||||
Percentage of shares vested on each anniversary of the grant date | 33.33% | 33.33% | 33.33% | ||||
Vesting period | 3 years | 3 years | 3 years | ||||
Percentage of annual bonus eligible to be paid in shares | 50.00% | ||||||
Restricted Stock | Non Employee Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares issued | 35,185 | 36,321 | 36,608 | ||||
Weighted average fair value per share | $ 31.05 | $ 27.73 | $ 26.46 | ||||
Restricted Stock | Non Employee Director | Revised Compensation Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares issued | 18,838 | ||||||
Restricted Stock | Chief Executive Officer And Other Key Employee | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares issued | 44,058 | ||||||
Percentage of shares vested on each anniversary of the grant date | 100.00% | ||||||
Vesting date | Jan. 1, 2018 | ||||||
Restricted Stock | Another Key Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares issued | 5,309 | ||||||
Percentage of shares vested on each anniversary of the grant date | 100.00% | ||||||
Vesting date | Feb. 7, 2019 | ||||||
Restricted Stock | Other Key Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares issued | 8,253 | ||||||
Restricted Stock | Other Key Employees | Stock vest first anniversary of the grant | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of shares vested on each anniversary of the grant date | 33.00% | ||||||
Restricted Stock | Other Key Employees | Stock vest second anniversary of the grant | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of shares vested on each anniversary of the grant date | 33.00% | ||||||
Restricted Stock | Other Key Employees | Stock vest third anniversary of the grant | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of shares vested on each anniversary of the grant date | 34.00% | ||||||
Time Based Option Award | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options exercisable | 450,000 | 450,000 | |||||
Stock options awarded | 325,000 | ||||||
Stock options forfeited | 125,000 | ||||||
Time Based Option Award | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options awarded | 300,000 | ||||||
Strike price per share | $ 17.87 | ||||||
Stock options forfeited | 25,000 | ||||||
Stock options granted (net) | 300,000 | ||||||
Percentage of shares vested on each anniversary of the grant date | 33.33% | ||||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Amortization expense related to options in 2017 | $ 300,000 | ||||||
Stock Options | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options awarded | 300,000 | ||||||
Exercise price applicable | $ 25 | ||||||
Stock Options | Chief Executive Officer | December 31, 2015 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of shares vested on each anniversary of the grant date | 20.00% | ||||||
Stock Options | Chief Executive Officer | December 31, 2016 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of shares vested on each anniversary of the grant date | 30.00% | ||||||
Stock Options | Chief Executive Officer | December 31, 2017 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of shares vested on each anniversary of the grant date | 50.00% | ||||||
Performance Based Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options awarded | 200,000 | ||||||
Strike price per share | $ 28.37 | ||||||
Stock options forfeited | 200,000 | ||||||
Stock options forfeited, strike price per share | $ 28.37 | ||||||
Ordinary Shares A | Share Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for grant | 2,000,000 | ||||||
Ordinary Shares A | A Former Employee | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Proceed from exercise of options | $ 0 | $ 0 | $ 0 |
Summary of Award Activity for S
Summary of Award Activity for Stock Options Granted and Weighted Average Exercise Price Per Share (Detail) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Options | |||||
Options outstanding, beginning balance | 800,000 | 612,500 | 412,500 | ||
Options issued | 0 | 200,000 | 325,000 | ||
Options forfeited | (200,000) | (125,000) | |||
Options exercised | 0 | [1] | 0 | 0 | |
Options expired | (12,500) | ||||
Options purchased by the Company | 0 | 0 | 0 | ||
Options outstanding, ending balance | 600,000 | 800,000 | 612,500 | ||
Options exercisable at December 31, 2016 | 450,000 | ||||
Weighted Average Exercise Price Per Share | |||||
Weighted average exercise price per share, beginning balance | $ 25.94 | $ 25.38 | $ 18.62 | ||
Options issued | 28.37 | 31.74 | |||
Options forfeited | 28.37 | 19.60 | |||
Options exercised | 0 | [1] | 0 | 0 | |
Options expired | 37.70 | ||||
Options purchased by the Company | 0 | 0 | 0 | ||
Weighted average exercise price per share, ending balance | 25.13 | $ 25.94 | $ 25.38 | ||
Options exercisable at December 31, 2016 | [1] | $ 22.71 | |||
Time Based Option Award | |||||
Options | |||||
Options outstanding, beginning balance | 600,000 | 612,500 | 412,500 | ||
Options issued | 325,000 | ||||
Options forfeited | (125,000) | ||||
Options exercised | 0 | 0 | 0 | ||
Options expired | (12,500) | ||||
Options purchased by the Company | 0 | 0 | 0 | ||
Options outstanding, ending balance | 600,000 | 600,000 | 612,500 | ||
Options exercisable at December 31, 2016 | 450,000 | ||||
Performance Based Stock Options | |||||
Options | |||||
Options outstanding, beginning balance | 200,000 | ||||
Options issued | 200,000 | ||||
Options forfeited | (200,000) | ||||
Options exercised | 0 | 0 | 0 | ||
Options purchased by the Company | 0 | 0 | 0 | ||
Options outstanding, ending balance | 200,000 | ||||
Weighted Average Exercise Price Per Share | |||||
Options issued | $ 28.37 | ||||
Options forfeited | $ 28.37 | ||||
[1] | The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. |
Option Intrinsic Values (Detail
Option Intrinsic Values (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding | 600,000 | 800,000 | 612,500 | 412,500 | ||
Exercisable | 450,000 | |||||
Exercised | 0 | [1] | 0 | 0 | ||
Outstanding | $ 25.13 | $ 25.94 | $ 25.38 | $ 18.62 | ||
Exercisable | [1] | 22.71 | ||||
Exercised | $ 0 | [1] | $ 0 | $ 0 | ||
Outstanding | $ 7.9 | |||||
Exercisable | $ 7 | |||||
[1] | The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. |
Options Exercisable (Detail)
Options Exercisable (Detail) | Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Price | $ / shares | $ 22.71 | [1] |
Number of options exercisable | shares | 450,000 | |
Exercise Price 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Price | $ / shares | $ 17.87 | |
Number of options exercisable | shares | 300,000 | |
Exercise Price 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Price | $ / shares | $ 32.38 | |
Number of options exercisable | shares | 150,000 | |
[1] | The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. |
Significant Assumptions Used To
Significant Assumptions Used To Estimate Fair Value of Stock Options Granted Using Black Scholes Option Pricing Model (Detail) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected volatility | 31.59% | 37.70% |
Risk-free interest rate | 1.70% | 1.70% |
Expected option life | 5 years | 6 years 10 months 24 days |
Summary of Range of Exercise Pr
Summary of Range of Exercise Prices of Options Outstanding (Detail) - $ / shares | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||
Options outstanding | 600,000 | 800,000 | 612,500 | |||
Exercise Price Range One | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||
Ranges of Exercise Prices, minimum | $ 17.87 | $ 17.87 | $ 17.87 | |||
Ranges of Exercise Prices, maximum | $ 19.99 | $ 19.99 | $ 19.99 | |||
Options outstanding | 300,000 | 300,000 | 300,000 | |||
Weighted Average Per Share Exercise Price | $ 17.87 | $ 17.87 | $ 17.87 | |||
Weighted Average Remaining Life | 4 years 8 months 12 days | 5 years 8 months 12 days | 6 years 8 months 12 days | |||
Exercise Price Range Two | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||
Ranges of Exercise Prices, minimum | $ 20 | $ 20 | $ 20 | |||
Ranges of Exercise Prices, maximum | 29.99 | $ 29.99 | 29.99 | |||
Options outstanding | 200,000 | |||||
Weighted Average Per Share Exercise Price | $ 28.37 | |||||
Weighted Average Remaining Life | 9 years | |||||
Exercise Price Range Three | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||
Ranges of Exercise Prices, minimum | 30 | $ 30 | 30 | |||
Ranges of Exercise Prices, maximum | $ 37.70 | $ 37.70 | $ 37.70 | |||
Options outstanding | 300,000 | [1] | 300,000 | [1] | 312,500 | [2] |
Weighted Average Per Share Exercise Price | $ 32.38 | $ 32.38 | $ 32.59 | |||
Weighted Average Remaining Life | 7 years 1 month 6 days | 8 years 1 month 6 days | 8 years 9 months 18 days | |||
[1] | the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. | |||||
[2] | the weighted average per share exercise price on 300,000 of these shares outstanding is variable. See note below under Chief Executive Officer for additional information. |
Summary of Range of Exercise136
Summary of Range of Exercise Prices of Options Outstanding (Parenthetical) (Detail) - shares | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options outstanding | 600,000 | 800,000 | 612,500 |
Chief Executive Officer | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options outstanding | 300,000 |
Summary of Restricted Stock Gra
Summary of Restricted Stock Grants Since Inception (Detail) - Restricted Stock - shares | 12 Months Ended | 124 Months Ended | 160 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Awards | 156,531 | 174,828 | 132,302 | 1,116,348 | 1,580,009 |
Key Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Awards | 121,346 | 138,507 | 95,694 | 711,068 | 1,066,615 |
Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Awards | 35,185 | 36,321 | 36,608 | 405,280 | 513,394 |
Summary of Non-Vested Restricte
Summary of Non-Vested Restricted Shares Activity (Detail) - Restricted Stock - $ / shares | 12 Months Ended | 124 Months Ended | 160 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested restricted shares, beginning balance | 259,905 | 172,275 | 98,121 | ||
Shares issued | 156,531 | 174,828 | 132,302 | 1,116,348 | 1,580,009 |
Shares vested | (111,205) | (70,503) | (57,017) | ||
Shares forfeited | (5,633) | (16,695) | (1,131) | ||
Non-vested restricted shares, ending balance | 299,598 | 259,905 | 172,275 | 98,121 | 299,598 |
Weighted Average Price Per Share | |||||
Weighted average price per share, beginning balance | $ 26.33 | $ 23.76 | $ 21.48 | ||
Shares issued | 29.44 | 28.24 | 25.67 | ||
Shares vested | 26.11 | 25.31 | 24.29 | ||
Shares forfeited | 27.25 | 24.11 | 22.13 | ||
Weighted average price per share, ending balance | $ 28.02 | $ 26.33 | $ 23.76 | $ 21.48 | $ 28.02 |
401(k) Plan - Additional Inform
401(k) Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer's matching contribution percentage on first 6% contributed by employee to a defined contribution plan | 100.00% | ||
Maximum percentage of employee's earnings that the company may contribute to the defined contribution plan | 6.00% | ||
Defined benefit plan expense | $ 1.9 | $ 2 | $ 1.2 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Net income | $ 38,373 | $ 9,535 | $ (5,165) | $ 7,125 | $ 27,304 | $ (3,746) | $ 11,117 | $ 6,794 | $ 49,868 | $ 41,469 | $ 62,856 |
Weighted average shares outstanding-basic | 17,246,717 | 24,253,657 | 25,131,811 | ||||||||
Net income per share | $ 2.89 | $ 1.71 | $ 2.50 | ||||||||
Weighted average shares outstanding-diluted | 17,547,061 | 24,505,851 | 25,331,420 | ||||||||
Net income per share | $ 2.18 | $ 0.54 | $ (0.30) | $ 0.41 | $ 1.30 | $ (0.15) | $ 0.43 | $ 0.26 | $ 2.84 | $ 1.69 | $ 2.48 |
Reconciliation of Weighted Aver
Reconciliation of Weighted Average Shares for Basic and Diluted Earnings Per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | |||
Weighted average shares for basic earnings per share | 17,246,717 | 24,253,657 | 25,131,811 |
Weighted average shares for diluted earnings per share | 17,547,061 | 24,505,851 | 25,331,420 |
Restricted Stock | |||
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | |||
Non-vested restricted stock and options | 187,526 | 148,669 | 100,546 |
Stock Options | |||
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | |||
Non-vested restricted stock and options | 112,818 | 103,525 | 99,063 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Line Items] | |||
Shares excluded from calculation of diluted earnings per share | 300,000 | 500,000 | 312,500 |
Summarizes Options which Deemed
Summarizes Options which Deemed to be Anti-dilutive (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Potentially Dilutive Securities Outstanding [Line Items] | |||
Shares excluded from calculation of diluted earnings per share | 300,000 | 500,000 | 312,500 |
Strike price per share | $ 28.37 | $ 31.74 | |
February 9, 2014 | |||
Potentially Dilutive Securities Outstanding [Line Items] | |||
Expiration Date | Feb. 9, 2024 | ||
Shares excluded from calculation of diluted earnings per share | 300,000 | ||
Strike price per share | $ 32.38 |
Statutory Financial Informat144
Statutory Financial Information - Additional Information (Detail) - USD ($) | Jan. 10, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
United National Insurance Companies | |||
Statutory Accounting Practices [Line Items] | |||
Maximum amount of dividends that could be paid in 2017 under applicable laws and regulations without regulatory approval | $ 17,800,000 | ||
Dividend paid to parent company | $ 12,000,000 | ||
United National Insurance Companies | Subsequent Events | |||
Statutory Accounting Practices [Line Items] | |||
Dividend paid to parent company | $ 35,000,000 | ||
Dividends payable, date to be paid | Jan. 10, 2017 | ||
American Reliable Insurance Company | |||
Statutory Accounting Practices [Line Items] | |||
Maximum amount of dividends that could be paid in 2017 under applicable laws and regulations without regulatory approval | 3,400,000 | ||
Dividends, declared and paid | 0 | ||
Penn- America Insurance Companies | |||
Statutory Accounting Practices [Line Items] | |||
Maximum amount of dividends that could be paid in 2017 under applicable laws and regulations without regulatory approval | 8,000,000 | ||
Maximum amount of dividends payable under applicable laws and regulations without regulatory approval which would be distributed to wholly owned parent company | 2,600,000 | ||
Dividends, declared and paid | 0 | ||
Global Indemnity Reinsurance | |||
Statutory Accounting Practices [Line Items] | |||
Maximum amount of dividends that could be paid in 2017 under applicable laws and regulations without regulatory approval | $ 324,700,000 | ||
Maximum reduction in statutory capital allowed without regulatory approval | 15.00% |
Information for Company's Unite
Information for Company's United States Insurance Companies, Net of Intercompany Eliminations as Determined in Accordance With Sap (Detail) - U.S. Insurance Companies - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus, as of end of period | $ 323,144 | $ 318,101 | $ 253,362 |
Statutory net income (loss) | $ 35,618 | $ 48,633 | $ 36,003 |
Information for United States I
Information for United States Insurance Companies & Global Indemnity Reinsurance, Net of Intercompany Eliminations, as Determined in Accordance With SAP and Bermuda (Detail) - Global Indemnity Reinsurance - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus, as of end of period | $ 838,923 | $ 713,842 | $ 923,862 |
Statutory net income (loss) | $ 32,768 | $ 864 | $ 44,593 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)Segment |
Segment Reporting Information [Line Items] | |||
Number of reportable business segments managed | Segment | 3 | ||
Proceeds from sale of capital stock | $ 18,700 | $ 18,700 | |
Pretax gain on sale of capital stock | $ 6,900 | $ 6,900 | $ 6,857 |
Summary of Business Segment Inf
Summary of Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||
Revenues: | |||||||||||||||||
Gross premiums written | $ 565,845 | $ 590,233 | $ 291,253 | ||||||||||||||
Net premiums written | 470,940 | 501,244 | 273,181 | ||||||||||||||
Net premiums earned | $ 109,472 | $ 119,553 | $ 117,804 | $ 121,636 | $ 123,222 | $ 124,707 | $ 128,877 | $ 127,337 | 468,465 | 504,143 | 268,519 | ||||||
Other income (loss) | 10,345 | 3,400 | 555 | ||||||||||||||
Total revenues | 478,810 | 507,543 | 269,074 | ||||||||||||||
Losses and Expenses: | |||||||||||||||||
Net losses and loss adjustment expenses | 48,946 | 72,162 | 78,111 | 64,784 | 48,498 | 77,691 | 79,560 | 69,619 | 264,003 | 275,368 | 137,561 | ||||||
Acquisition costs and other underwriting expenses | 47,889 | 48,129 | 48,542 | 52,090 | 51,185 | 50,934 | 50,926 | 48,258 | 196,650 | 201,303 | 109,619 | ||||||
Income (loss) from segments | 18,157 | 30,872 | 21,894 | ||||||||||||||
Unallocated Items: | |||||||||||||||||
Net investment income | 8,880 | 8,795 | 6,562 | 9,746 | 8,375 | 8,852 | 9,141 | 8,241 | 33,983 | 34,609 | 28,821 | ||||||
Net realized investment gains | 30,778 | 1,928 | (3,492) | (7,493) | 3,842 | (10,778) | 6,532 | (2,970) | 21,721 | (3,374) | 35,860 | ||||||
Corporate and other operating expenses | (17,338) | (24,448) | (14,559) | ||||||||||||||
Interest expense | (8,905) | (4,913) | (822) | ||||||||||||||
Income before income taxes | 46,535 | 10,598 | (11,468) | 1,953 | 29,463 | (9,727) | 9,772 | 3,238 | 47,618 | 32,746 | 71,194 | ||||||
Income tax expense (benefit) | 2,250 | 8,723 | (8,338) | ||||||||||||||
Net income | 38,373 | $ 9,535 | $ (5,165) | $ 7,125 | 27,304 | $ (3,746) | $ 11,117 | $ 6,794 | 49,868 | 41,469 | 62,856 | ||||||
Total assets | 1,972,946 | 1,957,294 | 1,972,946 | 1,957,294 | 1,930,033 | ||||||||||||
Personal Lines Segment | |||||||||||||||||
Revenues: | |||||||||||||||||
Gross premiums written | [2] | 300,888 | [1] | 326,282 | [3] | ||||||||||||
Net premiums written | [2] | 226,228 | 254,035 | ||||||||||||||
Net premiums earned | [2] | 236,170 | 253,048 | ||||||||||||||
Other income (loss) | [2] | 3,097 | 2,872 | ||||||||||||||
Total revenues | [2] | 239,267 | 255,920 | ||||||||||||||
Losses and Expenses: | |||||||||||||||||
Net losses and loss adjustment expenses | [2] | 174,933 | 163,986 | ||||||||||||||
Acquisition costs and other underwriting expenses | [2] | 103,289 | [4] | 99,140 | [5] | ||||||||||||
Income (loss) from segments | [2] | (38,955) | (7,206) | ||||||||||||||
Unallocated Items: | |||||||||||||||||
Total assets | [2] | 456,654 | 510,503 | 456,654 | 510,503 | ||||||||||||
Commercial Lines Segment | |||||||||||||||||
Revenues: | |||||||||||||||||
Gross premiums written | [2] | 205,120 | 214,218 | 229,978 | |||||||||||||
Net premiums written | [2] | 184,911 | 197,526 | 212,965 | |||||||||||||
Net premiums earned | [2] | 190,727 | 199,304 | 211,165 | |||||||||||||
Other income (loss) | [2] | 7,472 | 621 | 620 | |||||||||||||
Total revenues | [2] | 198,199 | 199,925 | 211,785 | |||||||||||||
Losses and Expenses: | |||||||||||||||||
Net losses and loss adjustment expenses | [2] | 74,996 | 97,530 | 117,586 | |||||||||||||
Acquisition costs and other underwriting expenses | [2] | 77,297 | [6] | 83,170 | [7] | 88,983 | [8] | ||||||||||
Income (loss) from segments | [2] | 45,906 | 19,225 | 5,216 | |||||||||||||
Unallocated Items: | |||||||||||||||||
Total assets | [2] | 804,418 | 729,097 | 804,418 | 729,097 | 1,288,763 | |||||||||||
Reinsurance Operations | |||||||||||||||||
Revenues: | |||||||||||||||||
Gross premiums written | [9] | 59,837 | 49,733 | 61,275 | |||||||||||||
Net premiums written | [9] | 59,801 | 49,683 | 60,216 | |||||||||||||
Net premiums earned | [9] | 41,568 | 51,791 | 57,354 | |||||||||||||
Other income (loss) | [9] | (224) | (93) | (65) | |||||||||||||
Total revenues | [9] | 41,344 | 51,698 | 57,289 | |||||||||||||
Losses and Expenses: | |||||||||||||||||
Net losses and loss adjustment expenses | [9] | 14,074 | 13,852 | 19,975 | |||||||||||||
Acquisition costs and other underwriting expenses | [9] | 16,064 | 18,993 | 20,636 | |||||||||||||
Income (loss) from segments | [9] | 11,206 | 18,853 | 16,678 | |||||||||||||
Unallocated Items: | |||||||||||||||||
Total assets | [9] | $ 711,874 | [10] | $ 717,694 | [10] | $ 711,874 | [10] | $ 717,694 | [10] | $ 641,270 | [11] | ||||||
[1] | Includes $35,334 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. | ||||||||||||||||
[2] | Includes business ceded to the Company's Reinsurance Operations. | ||||||||||||||||
[3] | Includes $55,829 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. | ||||||||||||||||
[4] | Includes federal excise tax of $1,181 relating to cessions from Personal Lines to Reinsurance Operations. | ||||||||||||||||
[5] | Includes federal excise tax of $1,265 relating to cessions from Personal Lines to Reinsurance Operations. | ||||||||||||||||
[6] | Includes federal excise tax of $523 relating to cessions from Commercial Lines to Reinsurance Operations. | ||||||||||||||||
[7] | Includes federal excise tax of $1,051 relating to cessions from Commercial Lines to Reinsurance Operations. | ||||||||||||||||
[8] | Includes excise tax of $1,114 related to cessions from Commercial Lines to Reinsurance Operations. | ||||||||||||||||
[9] | External business only, excluding business assumed from affiliates. | ||||||||||||||||
[10] | Comprised of Global Indemnity Reinsurance's total assets less its investment in subsidiaries | ||||||||||||||||
[11] | Comprised of Global Indemnity Reinsurance's total assets less its investment in subsidiaries. |
Summary of Business Segment 149
Summary of Business Segment Information (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Segment Reporting Information [Line Items] | |||||
Ceded premiums written | $ 94,905 | [1] | $ 88,989 | [1] | $ 18,072 |
Personal Lines Segment | |||||
Segment Reporting Information [Line Items] | |||||
Federal excise tax relating to cessions from Insurance Operations to Reinsurance Operations | 1,181 | 1,265 | |||
Commercial Lines Segment | |||||
Segment Reporting Information [Line Items] | |||||
Federal excise tax relating to cessions from Insurance Operations to Reinsurance Operations | 523 | 1,051 | $ 1,114 | ||
American Reliable Insurance Company | Personal Lines Segment | |||||
Segment Reporting Information [Line Items] | |||||
Ceded premiums written | $ 35,334 | $ 55,829 | |||
Quota share agreement percentage | 100.00% | 100.00% | |||
[1] | Includes ceded written premiums and ceded earned premiums of $55.8 million and $59.5 million, respectively, to American Bankers Insurance Company. |
Net Federal Income Taxes and Ca
Net Federal Income Taxes and Cash Interest Paid (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flow Supplemental Disclosures [Line Items] | |||
Federal income taxes paid | $ 195 | $ 104 | $ 13,997 |
Federal income taxes recovered | 4,889 | 2 | 136 |
Interest paid | $ 8,771 | $ 3,926 | $ 804 |
Supplemental Cash Flow Infor151
Supplemental Cash Flow Information - Additional Information (Detail) | Jan. 01, 2015 |
Global Indemnity Group Inc | American Reliable Insurance Company | |
Cash Flow Supplemental Disclosures [Line Items] | |
Acquired voting equity interest | 100.00% |
Liabilities Assumed on Acquisit
Liabilities Assumed on Acquisition (Detail) - Global Indemnity Group Inc - American Reliable Insurance Company $ in Thousands | Jan. 01, 2015USD ($) |
Cash Flow Supplemental Disclosures [Line Items] | |
Fair value of assets acquired (including goodwill) | $ 383,668 |
Liabilities assumed | $ 283,871 |
Summary of Quarterly Performanc
Summary of Quarterly Performance (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information [Line Items] | |||||||||||
Net premiums earned | $ 109,472 | $ 119,553 | $ 117,804 | $ 121,636 | $ 123,222 | $ 124,707 | $ 128,877 | $ 127,337 | $ 468,465 | $ 504,143 | $ 268,519 |
Net investment income | 8,880 | 8,795 | 6,562 | 9,746 | 8,375 | 8,852 | 9,141 | 8,241 | 33,983 | 34,609 | 28,821 |
Net realized investment gains (losses) | 30,778 | 1,928 | (3,492) | (7,493) | 3,842 | (10,778) | 6,532 | (2,970) | 21,721 | (3,374) | 35,860 |
Net losses and loss adjustment expenses | 48,946 | 72,162 | 78,111 | 64,784 | 48,498 | 77,691 | 79,560 | 69,619 | 264,003 | 275,368 | 137,561 |
Acquisition costs and other underwriting expenses | 47,889 | 48,129 | 48,542 | 52,090 | 51,185 | 50,934 | 50,926 | 48,258 | 196,650 | 201,303 | 109,619 |
Income (loss) before income taxes | 46,535 | 10,598 | (11,468) | 1,953 | 29,463 | (9,727) | 9,772 | 3,238 | 47,618 | 32,746 | 71,194 |
Net income (loss) | $ 38,373 | $ 9,535 | $ (5,165) | $ 7,125 | $ 27,304 | $ (3,746) | $ 11,117 | $ 6,794 | $ 49,868 | $ 41,469 | $ 62,856 |
Per share data-Diluted: | |||||||||||
Net income (loss) | $ 2.18 | $ 0.54 | $ (0.30) | $ 0.41 | $ 1.30 | $ (0.15) | $ 0.43 | $ 0.26 | $ 2.84 | $ 1.69 | $ 2.48 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 17, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | |||
Debt | $ 163,143 | $ 172,034 | |
Subsequent Events | Margin borrowing facilities | |||
Subsequent Event [Line Items] | |||
Debt | $ 74,800 | ||
Collateral for borrowed securities | $ 95,000 | ||
Subsequent Events | Margin borrowing facilities | Fed Funds Effective Rate | Maximum | |||
Subsequent Event [Line Items] | |||
Stated interest rate | 1.00% |
Summary Of Investments Other Th
Summary Of Investments Other Than Investments In Related Parties (Detail) $ in Thousands | Dec. 31, 2016USD ($) | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | $ 1,426,975 | [1] |
Value | 1,426,709 | |
Amount Included in the Balance Sheet | 1,426,709 | |
Fixed Maturities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 1,241,339 | [1] |
Value | 1,240,031 | |
Amount Included in the Balance Sheet | 1,240,031 | |
Fixed Maturities | U.S. Treasury and Agency Obligations | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 71,517 | [1] |
Value | 72,047 | |
Amount Included in the Balance Sheet | 72,047 | |
Fixed Maturities | Obligations of States and Political Subdivisions | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 155,402 | [1] |
Value | 156,446 | |
Amount Included in the Balance Sheet | 156,446 | |
Fixed Maturities | Mortgage Backed And Asset Backed Securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 506,842 | [1] |
Value | 505,651 | |
Amount Included in the Balance Sheet | 505,651 | |
Fixed Maturities | Public Utility, Bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 24,949 | [1] |
Value | 24,847 | |
Amount Included in the Balance Sheet | 24,847 | |
Fixed Maturities | All Other Corporate Bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 482,629 | [1] |
Value | 481,040 | |
Amount Included in the Balance Sheet | 481,040 | |
Equity securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 119,515 | [1] |
Value | 120,557 | |
Amount Included in the Balance Sheet | 120,557 | |
Equity securities | Public Utility, Equities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 8,881 | [1] |
Value | 9,146 | |
Amount Included in the Balance Sheet | 9,146 | |
Equity securities | Industrial, Miscellaneous, and All Others | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 110,634 | [1] |
Value | 111,411 | |
Amount Included in the Balance Sheet | 111,411 | |
Other long-term investments | Other Invested Assets | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 66,121 | [1] |
Value | 66,121 | |
Amount Included in the Balance Sheet | $ 66,121 | |
[1] | Original cost of equity securities; original cost of fixed maturities adjusted for amortization of premiums and accretion of discounts; original cost for other long-term investments adjusted for income or loss earned on investments in accordance with equity method of accounting. All amounts are shown net of impairment losses. |
Condensed Financial Informat156
Condensed Financial Information of Registrant (Parent Only) Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
ASSETS | |||||
Fixed maturities | $ 1,240,031 | $ 1,306,149 | |||
Cash and cash equivalents | 75,110 | 67,037 | $ 58,823 | $ 105,492 | |
Receivable for Securities | 172 | ||||
Other assets | 51,104 | 49,630 | |||
Total assets | 1,972,946 | 1,957,294 | 1,930,033 | ||
Liabilities: | |||||
Debt | 163,143 | 172,034 | |||
Other liabilities | 45,761 | 53,344 | |||
Total liabilities | 1,174,995 | 1,207,368 | |||
Commitments and contingencies | |||||
Shareholders' equity: | |||||
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued and outstanding: 13,436,548; B ordinary shares issued and outstanding: 4,133,366 | 2 | 3 | |||
Additional paid-in capital | 430,283 | 529,872 | |||
Accumulated other comprehensive income, net of tax | (618) | 4,078 | 23,384 | ||
Retained earnings | 368,284 | 318,416 | |||
Total shareholders' equity | 797,951 | 749,926 | 908,290 | ||
Total liabilities and shareholders' equity | 1,972,946 | 1,957,294 | |||
Ordinary Shares A | |||||
Shareholders' equity: | |||||
A ordinary shares in treasury, at cost: 3,110,795 shares | (102,443) | ||||
Total shareholders' equity | 1 | 2 | 2 | 2 | |
Parent Company | |||||
ASSETS | |||||
Fixed maturities | 3,770 | ||||
Cash and cash equivalents | 91 | 2,185 | $ 46 | $ 1,746 | |
Intercompany notes receivable | [1] | 750,397 | |||
Equity in unconsolidated subsidiaries | [1] | 292,195 | 951,760 | ||
Receivable for Securities | 1 | ||||
Due from affiliates | [1] | 3,645 | |||
Other assets | 59 | ||||
Total assets | 1,046,513 | 957,590 | |||
Liabilities: | |||||
Debt | 96,497 | 96,388 | |||
Intercompany notes payable | [1] | 141,998 | 108,000 | ||
Interest Payable | 990 | ||||
Due to affiliates | [1] | 8,759 | |||
Other liabilities | 318 | 3,221 | |||
Total liabilities | 248,562 | 207,609 | |||
Commitments and contingencies | |||||
Shareholders' equity: | |||||
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued and outstanding: 13,436,548; B ordinary shares issued and outstanding: 4,133,366 | 2 | 3 | |||
Deferred shares, €1 par value, 40,000 ordinary shares authorized, issued and outstanding | [1] | 55 | |||
Preferred shares, $0.0001 par value, 100,000,000 shares authorized, none issued and outstanding | |||||
Additional paid-in capital | 430,283 | 529,872 | |||
Accumulated other comprehensive income, net of tax | (618) | 4,078 | |||
Retained earnings | 368,284 | 318,416 | |||
Total shareholders' equity | 797,951 | 749,981 | |||
Total liabilities and shareholders' equity | $ 1,046,513 | 957,590 | |||
Parent Company | Ordinary Shares A | |||||
Shareholders' equity: | |||||
A ordinary shares in treasury, at cost: 3,110,795 shares | $ (102,443) | ||||
[1] | This item has been eliminated in the Company's Consolidated Financial Statements. |
Condensed Financial Informat157
Condensed Financial Information of Registrant (Parent Only) Balance Sheets (Parenthetical) (Detail) | Dec. 31, 2016$ / sharesshares | Nov. 07, 2016$ / shares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2015€ / sharesshares |
Condensed Financial Statements, Captions [Line Items] | ||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 900,000,000 | 900,000,000 | 900,000,000 | |
Ordinary Shares A | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Ordinary shares, par value | $ / shares | $ 0.0001 | |||
Ordinary shares, shares issued | 13,436,548 | 16,424,546 | 16,424,546 | |
Ordinary shares, shares outstanding | 13,436,548 | 13,313,751 | 13,313,751 | |
Treasury shares, cost | 0 | 3,110,795 | 3,110,795 | |
Ordinary Shares B | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Ordinary shares, par value | $ / shares | $ 0.0001 | |||
Ordinary shares, shares issued | 4,133,366 | 4,133,366 | 4,133,366 | |
Ordinary shares, shares outstanding | 4,133,366 | 4,133,366 | 4,133,366 | |
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 900,000,000 | 900,000,000 | 900,000,000 | |
Deferred shares, par value | € / shares | € 1 | |||
Deferred shares, shares authorized | 40,000 | 40,000 | ||
Deferred shares, shares issued | 40,000 | 40,000 | ||
Deferred shares, shares outstanding | 40,000 | 40,000 | ||
Preferred shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Preferred shares, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |
Preferred shares, shares issued | 0 | 0 | 0 | |
Preferred shares, shares outstanding | 0 | 0 | 0 | |
Parent Company | Ordinary Shares A | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Ordinary shares, shares issued | 13,436,548 | 16,424,546 | 16,424,546 | |
Ordinary shares, shares outstanding | 13,436,548 | 13,313,751 | 13,313,751 | |
Treasury shares, cost | 3,110,795 | 3,110,795 | ||
Parent Company | Ordinary Shares B | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Ordinary shares, shares issued | 4,133,366 | 4,133,366 | 4,133,366 | |
Ordinary shares, shares outstanding | 4,133,366 | 4,133,366 | 4,133,366 |
Condensed Financial Informat158
Condensed Financial Information of Registrant (Parent Only) Statement of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Revenues: | ||||||||||||
Net investment income | $ 8,880 | $ 8,795 | $ 6,562 | $ 9,746 | $ 8,375 | $ 8,852 | $ 9,141 | $ 8,241 | $ 33,983 | $ 34,609 | $ 28,821 | |
Total revenues | 534,514 | 538,778 | 333,755 | |||||||||
Expenses: | ||||||||||||
Income before income taxes | 46,535 | 10,598 | (11,468) | 1,953 | 29,463 | (9,727) | 9,772 | 3,238 | 47,618 | 32,746 | 71,194 | |
Equity in earnings of unconsolidated subsidiaries | 5,190 | 2,533 | 0 | |||||||||
Net income | $ 38,373 | $ 9,535 | $ (5,165) | $ 7,125 | $ 27,304 | $ (3,746) | $ 11,117 | $ 6,794 | 49,868 | 41,469 | 62,856 | |
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized holding losses | 10,058 | (17,457) | 6,878 | |||||||||
Other comprehensive income (loss), net of tax | (4,696) | (19,306) | (30,644) | |||||||||
Comprehensive income, net of tax | 45,172 | 22,163 | 32,212 | |||||||||
Parent Company | ||||||||||||
Revenues: | ||||||||||||
Net investment income | 28 | |||||||||||
Total revenues | 28 | |||||||||||
Expenses: | ||||||||||||
Intercompany interest expense | [1] | 198 | 1,296 | 1,296 | ||||||||
Other expenses | 1,833 | 8,203 | 4,484 | |||||||||
Income before income taxes | (2,003) | (9,499) | (5,780) | |||||||||
Equity in earnings of unconsolidated subsidiaries | [1] | 51,871 | 50,968 | 68,636 | ||||||||
Net income | 49,868 | 41,469 | 62,856 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized holding losses | (17) | |||||||||||
Equity in other comprehensive loss of unconsolidated subsidiaries | [1] | (4,679) | (19,306) | (30,644) | ||||||||
Other comprehensive income (loss), net of tax | (4,696) | (19,306) | (30,644) | |||||||||
Comprehensive income, net of tax | $ 45,172 | $ 22,163 | $ 32,212 | |||||||||
[1] | This item has been eliminated in the Company's Consolidated Financial Statements. |
Condensed Financial Informat159
Condensed Financial Information of Registrant (Parent Only) Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used for) operating activities | $ (24,396) | $ 3,750 | $ (12,002) |
Cash flows from financing activities: | |||
Proceeds from issuance of subordinated notes | 100,000 | ||
Debt issuance cost | (14) | (3,659) | |
Purchases of A ordinary shares | (805) | (333) | (139) |
Tax benefit on share-based compensation expense | 127 | 10 | 37 |
Redemption of ordinary shares | (189,770) | ||
Net cash provided by (used for) financing activities | (9,692) | (192,779) | 74,571 |
Cash flows from investing activities activities: | |||
Proceeds from sale of fixed maturities | 381,389 | 647,404 | 415,739 |
Net cash provided by (used for) investing activities | 42,161 | 197,243 | (109,238) |
Net change in cash and equivalents | 8,073 | 8,214 | (46,669) |
Cash and cash equivalents at beginning of period | 67,037 | 58,823 | 105,492 |
Cash and cash equivalents at end of period | 75,110 | 67,037 | 58,823 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used for) operating activities | 1 | 95,891 | (1,598) |
Cash flows from financing activities: | |||
Proceeds from issuance of subordinated notes | 100,000 | ||
Debt issuance cost | (3,659) | ||
Purchases of A ordinary shares | (333) | (139) | |
Tax benefit on share-based compensation expense | 10 | 37 | |
Redemption of ordinary shares | (189,770) | ||
Net cash provided by (used for) financing activities | (93,752) | (102) | |
Cash flows from investing activities activities: | |||
Proceeds from disposition of subsidiaries | 456 | ||
Capital contribution to a subsidiary | (450) | ||
Proceeds from sale of fixed maturities | 84 | ||
Net cash provided by (used for) investing activities | 90 | ||
Net change in cash and equivalents | 91 | 2,139 | (1,700) |
Cash and cash equivalents at beginning of period | 2,185 | 46 | 1,746 |
Cash and cash equivalents at end of period | $ 91 | $ 2,185 | $ 46 |
Condensed Financial Informat160
Condensed Financial Information of Registrant (Parent Only) - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Parent Company | Non-Cash Dividend | |||
Condensed Financial Statements, Captions [Line Items] | |||
Non-cash dividends received from subsidiaries | $ 0 | $ 0 | $ 2,700,000 |
Supplementary Insurance Info161
Supplementary Insurance Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Premium Revenue | $ 468,465 | $ 504,143 | $ 268,519 |
Benefits, Claims, Losses And Settlement Expenses | 264,003 | 275,368 | 137,561 |
Amortization of Deferred Policy Acquisition Costs | 114,317 | 86,170 | 57,051 |
Net Written Premium | 470,940 | 501,244 | 273,181 |
Commercial Lines Segment | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 19,755 | 20,784 | 21,249 |
Future Policy Benefits, Losses, Claims And Loss Expenses | 458,645 | 524,607 | 579,621 |
Unearned Premiums | 94,698 | 100,027 | 102,118 |
Other Policy and Benefits Payable | 0 | ||
Premium Revenue | 190,727 | 199,304 | 211,165 |
Benefits, Claims, Losses And Settlement Expenses | 74,996 | 97,530 | 117,586 |
Amortization of Deferred Policy Acquisition Costs | 42,361 | 43,821 | 45,015 |
Net Written Premium | 184,911 | 197,526 | 212,965 |
Personal Lines Segment | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 28,381 | 31,900 | |
Future Policy Benefits, Losses, Claims And Loss Expenses | 127,350 | 94,359 | |
Unearned Premiums | 157,464 | 169,669 | |
Premium Revenue | 236,170 | 253,048 | |
Benefits, Claims, Losses And Settlement Expenses | 174,933 | 163,986 | |
Amortization of Deferred Policy Acquisition Costs | 61,416 | 31,291 | |
Net Written Premium | 226,228 | 254,035 | |
Reinsurance Operations | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 9,765 | 3,833 | 3,989 |
Future Policy Benefits, Losses, Claims And Loss Expenses | 65,047 | 61,081 | 95,851 |
Unearned Premiums | 34,822 | 16,589 | 18,697 |
Premium Revenue | 41,568 | 51,791 | 57,354 |
Benefits, Claims, Losses And Settlement Expenses | 14,074 | 13,852 | 19,975 |
Amortization of Deferred Policy Acquisition Costs | 10,540 | 11,058 | 12,036 |
Net Written Premium | $ 59,801 | $ 49,683 | $ 60,216 |
Supplementary Insurance Info162
Supplementary Insurance Information Unallocated Corporate Items (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unallocated Corporate Items [Line Items] | |||
Net Investment Income | $ 33,983 | $ 34,609 | $ 28,821 |
Corporate and Other Operating Expenses | $ 17,338 | $ 24,448 | $ 14,559 |
Reinsurance Earned Premiums (De
Reinsurance Earned Premiums (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||||
Direct Amount | $ 466,750 | $ 452,441 | $ 228,652 | ||||||||||
Ceded to Other Companies | 96,552 | [1] | 92,852 | [1] | 18,547 | ||||||||
Assumed from Other Companies | 98,267 | 144,554 | 58,414 | ||||||||||
Net Amount | $ 109,472 | $ 119,553 | $ 117,804 | $ 121,636 | $ 123,222 | $ 124,707 | $ 128,877 | $ 127,337 | 468,465 | 504,143 | 268,519 | ||
Property & Liability Insurance | |||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||||
Direct Amount | 466,750 | 452,441 | 228,652 | ||||||||||
Ceded to Other Companies | 96,552 | 92,852 | 18,547 | ||||||||||
Assumed from Other Companies | 98,267 | 144,554 | 58,414 | ||||||||||
Net Amount | $ 468,465 | $ 504,143 | $ 268,519 | ||||||||||
Percentage of Assumed to Net | 21.00% | 28.70% | 21.80% | ||||||||||
[1] | Includes ceded written premiums and ceded earned premiums of $55.8 million and $59.5 million, respectively, to American Bankers Insurance Company. |
Valuation and Qualifying Acc164
Valuation and Qualifying Accounts and Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Loans and Leases Receivable | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Charged (Credited) to Other Accounts | $ 0 | $ 0 | $ 0 |
Other Deductions | 0 | 0 | 0 |
Allowance for Loan and Lease Losses, Real Estate | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Allowance for Doubtful Accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 1,646 | 1,518 | 1,782 |
Charged (Credited) to Costs and Expenses | 282 | 128 | (264) |
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Balance at End of Period | 1,928 | 1,646 | 1,518 |
Valuation Allowance of Deferred Tax Assets | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Allowance for Reinsurance Recoverable | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 9,675 | 9,350 | 9,010 |
Charged (Credited) to Costs and Expenses | (1,635) | 325 | 340 |
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 8,040 | $ 9,675 | $ 9,350 |
Supplementary Information fo165
Supplementary Information for Property Casualty Underwriters (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||
Deferred Policy Acquisition Costs | $ 57,901 | $ 56,517 | $ 25,238 |
Reserves for Unpaid Claims and Claim Adjustment Expenses | 651,042 | 680,047 | 675,472 |
Discount If Any Deducted | 2,000 | 3,000 | 4,000 |
Unearned Premiums | 286,984 | 286,285 | 120,815 |
Earned Premiums | 468,465 | 504,143 | 268,519 |
Net Investment Income | 33,983 | 34,609 | 28,821 |
Claims and Claim Adjustment Expense Incurred Related To Current Year | 321,255 | 310,066 | 153,994 |
Claims and Claim Adjustment Expense Incurred Related To Prior Year | (57,252) | (34,698) | (16,433) |
Amortization Of Deferred Policy Acquisition Costs | 114,317 | 86,170 | 57,051 |
Paid Claims and Claim Adjustment Expenses | 317,369 | 332,417 | 172,265 |
Premiums Written | $ 470,940 | $ 501,244 | $ 273,181 |