Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | GBLI | |
Entity Registrant Name | Global Indemnity Ltd | |
Entity Central Index Key | 1,494,904 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Ordinary Shares A | ||
Document Information [Line Items] | ||
Entity Ordinary Shares, Shares Outstanding | 13,462,999 | |
Ordinary Shares B | ||
Document Information [Line Items] | ||
Entity Ordinary Shares, Shares Outstanding | 4,133,366 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fixed maturities: | ||
Available for sale, at fair value (amortized cost: $1,355,690 and $1,241,339) | $ 1,360,163 | $ 1,240,031 |
Equity securities: | ||
Available for sale, at fair value (cost: $124,064 and $119,515) | 133,462 | 120,557 |
Other invested assets | 73,553 | 66,121 |
Total investments | 1,567,178 | 1,426,709 |
Cash and cash equivalents | 60,087 | 75,110 |
Premiums receivable, net | 84,462 | 92,094 |
Reinsurance receivables, net | 123,769 | 143,774 |
Funds held by ceding insurers | 40,274 | 13,114 |
Receivable for securities sold | 785 | |
Deferred federal income taxes | 50,549 | 40,957 |
Deferred acquisition costs | 62,297 | 57,901 |
Intangible assets | 22,682 | 23,079 |
Goodwill | 6,521 | 6,521 |
Prepaid reinsurance premiums | 30,827 | 42,583 |
Other assets | 81,259 | 51,104 |
Total assets | 2,130,690 | 1,972,946 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 649,726 | 651,042 |
Unearned premiums | 290,760 | 286,984 |
Federal income taxes payable | 533 | 219 |
Ceded balances payable | 12,867 | 14,675 |
Payable for securities purchased | 3,717 | |
Contingent commissions | 5,552 | 9,454 |
Debt | 298,935 | 163,143 |
Other liabilities | 48,404 | 45,761 |
Total liabilities | 1,306,777 | 1,174,995 |
Commitments and contingencies (Note 10) | ||
Shareholders' equity: | ||
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued: 13,458,465 and 13,436,548 respectively; A ordinary shares outstanding: 13,428,914 and 13,436,548, respectively; B ordinary shares issued and outstanding: 4,133,366 and 4,133,366, respectively | 2 | 2 |
Additional paid-in capital | 433,254 | 430,283 |
Accumulated other comprehensive income, net of taxes | 10,085 | (618) |
Retained earnings | 381,731 | 368,284 |
Total shareholders' equity | 823,913 | 797,951 |
Total liabilities and shareholders' equity | 2,130,690 | 1,972,946 |
Ordinary Shares A | ||
Shareholders' equity: | ||
A ordinary shares in treasury, at cost: 29,551 and 0 shares, respectively | (1,159) | |
Total shareholders' equity | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Available for sale, amortized cost | $ 1,355,690 | $ 1,241,339 |
Available for sale, at cost | $ 124,064 | $ 119,515 |
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 | 13,458,465 | 13,436,548 |
Ordinary shares, shares outstanding | 13,428,914 | 13,436,548 |
Treasury shares, shares | 29,551 | 0 |
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 | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Revenues: | |||||
Gross premiums written | $ 126,054 | $ 133,569 | $ 393,699 | $ 429,254 | |
Net premiums written | 109,045 | 115,051 | 344,348 | 357,233 | |
Net premiums earned | 108,619 | 119,553 | 328,818 | 358,993 | |
Net investment income | 10,134 | 8,795 | 27,618 | 25,103 | |
Net realized investment gains (losses): | |||||
Other than temporary impairment losses on investments | (1,020) | (2,214) | (1,708) | (4,481) | |
Other net realized investment gains (losses) | 57 | 4,142 | 858 | (4,576) | |
Total net realized investment gains (losses) | (963) | 1,928 | (850) | (9,057) | |
Other income | 2,294 | 7,852 | 5,444 | 9,603 | |
Total revenues | 120,084 | 138,128 | 361,030 | 384,642 | |
Losses and Expenses: | |||||
Net losses and loss adjustment expenses | 82,395 | 72,162 | 202,656 | 215,057 | |
Acquisition costs and other underwriting expenses | 45,002 | 48,129 | 135,010 | 148,761 | |
Corporate and other operating expenses | 4,630 | 5,006 | 11,045 | 13,064 | |
Interest expense | 4,836 | 2,233 | 12,065 | 6,677 | |
Income (loss) before income taxes | (16,779) | 10,598 | 254 | 1,083 | |
Income tax expense (benefit) | (7,855) | 1,063 | (13,193) | (10,412) | |
Net income (loss) | $ (8,924) | $ 9,535 | $ 13,447 | $ 11,495 | |
Net income (loss) | |||||
Basic | [1] | $ (0.51) | $ 0.55 | $ 0.78 | $ 0.67 |
Diluted | [1] | $ (0.51) | $ 0.54 | $ 0.76 | $ 0.66 |
Weighted-average number of shares outstanding | |||||
Basic | 17,343,292 | 17,254,843 | 17,331,840 | 17,241,040 | |
Diluted | [2] | 17,343,292 | 17,540,060 | 17,684,519 | 17,515,854 |
[1] | For the quarter ended September 30, 2017, "diluted" loss per share is the same as "basic" loss per share since there was a net loss for the period. | ||||
[2] | For the quarter ended September 30, 2017, "weighted average shares outstanding - basic" was used to calculate "diluted earnings per share" due to a net loss for the period. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income (loss) | $ (8,924) | $ 9,535 | $ 13,447 | $ 11,495 |
Other comprehensive income, net of tax: | ||||
Unrealized holding gains | 3,386 | 2,076 | 10,719 | 22,081 |
Portion of other-than-temporary impairment losses recognized in other comprehensive income | (1) | (3) | (2) | (4) |
Reclassification adjustment for (gains) losses included in net income (loss) | 441 | (781) | (788) | (2,474) |
Unrealized foreign currency translation gains (losses) | 273 | (89) | 774 | (402) |
Other comprehensive income (loss), net of tax | 4,099 | 1,203 | 10,703 | 19,201 |
Comprehensive income (loss), net of tax | $ (4,825) | $ 10,738 | $ 24,150 | $ 30,696 |
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, 2015 | 3,110,795 | 16,424,546 | 4,133,366 | |||||
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 | ||||||
Balance at Dec. 31, 2015 | $ 529,872 | $ 4,078 | $ 318,416 | $ (102,443) | $ 2 | $ 1 | ||
A ordinary shares purchased, at cost | $ (805) | |||||||
Other comprehensive income (loss): | ||||||||
Change in unrealized holding gains (losses) | (4,751) | |||||||
Change in other than temporary impairment losses recognized in other comprehensive income | (3) | |||||||
Unrealized foreign currency translation gains | 58 | |||||||
Other comprehensive income (loss), net of tax | (4,696) | |||||||
Net income | 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 | 127 | |||||||
Balance at Dec. 31, 2016 | $ 797,951 | 430,283 | (618) | 368,284 | $ 1 | 1 | ||
Ordinary shares issued under share incentive plans | 2,204 | |||||||
A ordinary shares purchased | 29,551 | |||||||
Ordinary shares issued to directors | 19,713 | |||||||
Number at Sep. 30, 2017 | 29,551 | 13,458,465 | ||||||
A ordinary shares purchased, at cost | $ (1,159) | |||||||
Other comprehensive income (loss): | ||||||||
Change in unrealized holding gains (losses) | 9,932 | |||||||
Change in other than temporary impairment losses recognized in other comprehensive income | (3) | |||||||
Unrealized foreign currency translation gains | 774 | 774 | ||||||
Other comprehensive income (loss), net of tax | 10,703 | 10,703 | ||||||
Net income | 13,447 | 13,447 | ||||||
Share compensation plans | 2,971 | |||||||
Balance at Sep. 30, 2017 | $ 823,913 | $ 433,254 | $ 10,085 | $ 381,731 | $ (1,159) | $ 1 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 13,447 | $ 11,495 |
Adjustments to reconcile net income to net cash used for operating activities: | ||
Amortization and depreciation | 4,813 | 4,757 |
Amortization of debt issuance costs | 166 | 92 |
Restricted stock and stock option expense | 2,971 | 2,499 |
Deferred federal income taxes | (13,611) | (10,847) |
Amortization of bond premium and discount, net | 6,137 | 7,398 |
Net realized investment gains | 850 | 9,057 |
Gain on disposition of subsidiary | (6,872) | |
Equity in the earnings of equity method limited liability investments | (2,423) | (3,749) |
Changes in: | ||
Premiums receivable, net | 7,632 | 2,776 |
Reinsurance receivables, net | 20,005 | 7,142 |
Funds held by ceding insurers | (26,576) | (3,319) |
Unpaid losses and loss adjustment expenses | (1,316) | (15,665) |
Unearned premiums | 3,776 | (7,724) |
Ceded balances payable | (1,808) | 7,129 |
Other assets and liabilities, net | (31,442) | (19,348) |
Contingent commissions | (3,902) | (1,677) |
Federal income tax receivable/payable | 314 | 172 |
Deferred acquisition costs, net | (4,396) | 1,376 |
Prepaid reinsurance premiums | 11,756 | 5,962 |
Net cash used for operating activities | (13,607) | (9,346) |
Cash flows from investing activities: | ||
Proceeds from sale of fixed maturities | 742,229 | 279,659 |
Proceeds from sale of equity securities | 24,483 | 34,976 |
Proceeds from maturity of fixed maturities | 112,620 | 61,437 |
Proceeds from limited partnerships | 12,990 | 6,350 |
Proceeds from disposition of subsidiary, net of cash and cash equivalents disposed of $1,269 | 16,937 | |
Amounts paid in connection with derivatives | (2,500) | (11,527) |
Purchases of fixed maturities | (979,074) | (344,514) |
Purchases of equity securities | (28,631) | (34,945) |
Purchases of other invested assets | (18,000) | (2,643) |
Net cash provided by (used for) investing activities | (135,883) | 5,730 |
Cash flows from financing activities: | ||
Net borrowings under margin borrowing facility | 9,872 | 1,050 |
Proceeds from issuance of subordinated notes | 130,000 | |
Debt issuance cost | (4,246) | (14) |
Tax benefit on share-based compensation expense | 127 | |
Purchase of A ordinary shares | (1,159) | (805) |
Net cash provided by financing activities | 134,467 | 358 |
Net change in cash and cash equivalents | (15,023) | (3,258) |
Cash and cash equivalents at beginning of period | 75,110 | 67,037 |
Cash and cash equivalents at end of period | $ 60,087 | $ 63,779 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Proceeds from disposition of subsidiary, cash disposed | $ 1,269 |
Principles of Consolidation and
Principles of Consolidation and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Principles of Consolidation and Basis of Presentation | 1. Principles of Consolidation and Basis of Presentation Global Indemnity Limited (“Global Indemnity” or “the Company”), incorporated on February 9, 2016, 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. Please see Note 2 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2016 Annual Report on Form 10-K The Company manages its business through three business segments: Commercial Lines, Personal Lines, and Reinsurance Operations. The Company’s Commercial Lines offers specialty property and casualty insurance products in the excess and surplus lines marketplace. The Company manages its Commercial Lines by differentiating them into four 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; 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; and Vacant Express, which insures dwellings which are currently vacant, undergoing renovation, or are under construction and is distributed through aggregators, brokers, and retail agents. 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 offers specialty personal lines and agricultural coverage through general and specialty agents with specific binding authority on an admitted basis. Collectively, the Company’s U.S. insurance subsidiaries are licensed in all 50 states and the District of Columbia. The Commercial Lines and Personal Lines segments comprise the Company’s U.S. Insurance Operations (‘Insurance Operations”). The Company’s Reinsurance Operations consist solely of the operations of its Bermuda-based wholly-owned subsidiary, Global Indemnity Reinsurance Company, Ltd. (“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. During the 1 st re-evaluated The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and nine months ended September 30, 2017 and 2016 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2016 Annual Report on Form 10-K. 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 | 9 Months Ended |
Sep. 30, 2017 | |
Investments | 2. Investments The amortized cost and estimated fair value of investments were as follows as of September 30, 2017 and December 31, 2016: (Dollars in thousands) Amortized Cost Gross Gross Estimated Other than As of September 30, 2017 Fixed maturities: U.S. treasury and agency obligations $ 117,596 $ 665 $ (495 ) $ 117,766 $ — Obligations of states and political subdivisions 116,508 991 (256 ) 117,243 — Mortgage-backed securities 146,800 650 (562 ) 146,888 — Asset-backed securities 209,028 634 (142 ) 209,520 (1 ) Commercial mortgage-backed securities 139,740 94 (741 ) 139,093 — Corporate bonds 485,580 3,851 (838 ) 488,593 — Foreign corporate bonds 140,438 810 (188 ) 141,060 — Total fixed maturities 1,355,690 7,695 (3,222 ) 1,360,163 (1 ) Common stock 124,064 13,148 (3,750 ) 133,462 — Other invested assets 73,553 — — 73,553 — Total $ 1,553,307 $ 20,843 $ (6,972 ) $ 1,567,178 $ (1 ) (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, 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”). 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 4% and 5% of shareholders’ equity at September 30, 2017 and December 31, 2016, respectively. The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at September 30, 2017, 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 $ 86,480 $ 86,515 Due in one year through five years 493,819 495,425 Due in five years through ten years 273,515 276,346 Due in ten years through fifteen years 592 598 Due after fifteen years 5,716 5,778 Mortgage-backed securities 146,800 146,888 Asset-backed securities 209,028 209,520 Commercial mortgage-backed securities 139,740 139,093 Total $ 1,355,690 $ 1,360,163 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 September 30, 2017: 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 $ 96,336 $ (489 ) $ 594 $ (6 ) $ 96,930 $ (495 ) Obligations of states and political subdivisions 27,806 (199 ) 8,629 (57 ) 36,435 (256 ) Mortgage-backed securities 105,162 (554 ) 297 (8 ) 105,459 (562 ) Asset-backed securities 41,719 (142 ) — — 41,719 (142 ) Commercial mortgage-backed securities 97,191 (639 ) 6,727 (102 ) 103,918 (741 ) Corporate bonds 125,550 (600 ) 17,493 (238 ) 143,043 (838 ) Foreign corporate bonds 40,145 (87 ) 10,446 (101 ) 50,591 (188 ) Total fixed maturities 533,909 (2,710 ) 44,186 (512 ) 578,095 (3,222 ) Common stock 29,150 (3,750 ) — — 29,150 (3,750 ) Total $ 563,059 $ (6,460 ) $ 44,186 $ (512 ) $ 607,245 $ (6,972 ) (1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit 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 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. 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 – in-house Mortgage-backed securities (“MBS”) – HPI-adjusted Asset-backed securities (“ABS”) - in-depth Commercial mortgage-backed securities (“CMBS”) - re-underwritten Corporate bonds - A- Foreign bonds Common stock The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the quarters and nine months ended September 30, 2017 and 2016: Quarters Ended September 30, Nine Months Ended (Dollars in thousands) 2017 2016 2017 2016 Fixed maturities: OTTI losses, gross $ — $ (108 ) $ (31 ) $ (201 ) Portion of loss recognized in other comprehensive income (pre-tax) — — — — Net impairment losses on fixed maturities recognized in earnings — (108 ) (31 ) (201 ) Equity securities (1,020 ) (2,106 ) (1,677 ) (4,280 ) Total $ (1,020 ) $ (2,214 ) $ (1,708 ) $ (4,481 ) The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company for the quarters and nine months ended September 30, 2017 and 2016 for which a portion of the OTTI loss was recognized in other comprehensive income. Quarters Ended September 30, Nine Months Ended (Dollars in thousands) 2017 2016 2017 2016 Balance at beginning of period $ 16 $ 31 $ 31 $ 31 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 (3 ) — (18 ) — Balance at end of period $ 13 $ 31 $ 13 $ 31 Accumulated Other Comprehensive Income, Net of Tax Accumulated other comprehensive income, net of tax, as of September 30, 2017 and December 31, 2016 was as follows: (Dollars in thousands) September 30, 2017 December 31, 2016 Net unrealized gains (losses)from: Fixed maturities $ 4,473 $ (1,308 ) Common stock 9,398 1,042 Foreign currency fluctuations 584 — Deferred taxes (4,370 ) (352 ) Accumulated other comprehensive income, net of tax $ 10,085 $ (618 ) The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the quarters and nine months ended September 30, 2017 and 2016: Quarter Ended September 30, 2017 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ 5,549 $ 437 $ 5,986 Other comprehensive income (loss) before reclassification 3,173 485 3,658 Amounts reclassified from accumulated other comprehensive income (loss) 653 (212 ) 441 Other comprehensive income (loss) 3,826 273 4,099 Ending balance $ 9,375 $ 710 $ 10,085 Quarter Ended September 30, 2016 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ 22,511 $ (435 ) $ 22,076 Other comprehensive income (loss) before reclassification 2,073 (89 ) 1,984 Amounts reclassified from accumulated other Comprehensive loss (781 ) — (781 ) Other comprehensive income (loss) 1,292 (89 ) 1,203 Ending balance $ 23,803 $ (524 ) $ 23,279 Nine Months Ended September 30, 2017 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ (554 ) $ (64 ) $ (618 ) Other comprehensive income (loss) before reclassification 10,498 993 11,491 Amounts reclassified from accumulated other comprehensive income (loss) (569 ) (219 ) (788 ) Other comprehensive income (loss) 9,929 774 10,703 Ending balance $ 9,375 $ 710 $ 10,085 Nine Months Ended September 30, 2016 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ 4,200 $ (122 ) $ 4,078 Other comprehensive income (loss) before reclassification 22,075 (400 ) 21,675 Amounts reclassified from accumulated other comprehensive loss (2,472 ) (2 ) (2,474 ) Other comprehensive income (loss) 19,603 (402 ) 19,201 Ending balance $ 23,803 $ (524 ) $ 23,279 The reclassifications out of accumulated other comprehensive income for the quarters and nine months ended September 30, 2017 and 2016 were as follows: (Dollars in thousands) Amounts Reclassified from Details about Accumulated Other Affected Line Item in the Operations 2017 2016 Unrealized gains and losses on available for sale securities Other net realized investment gains $ (97 ) $ (3,384 ) Other than temporary impairment losses on investments 1,020 2,214 Total before tax 923 (1,170 ) Income tax expense (270 ) 389 Unrealized gains and losses on available for sale securities, net of tax $ 653 $ (781 ) Foreign currency items Other net realized investment gains $ (326 ) $ — Income tax expense 114 — Foreign currency items, net of tax $ (212 ) $ — Total reclassifications Total reclassifications, net of tax $ 441 $ (781 ) (Dollars in thousands) Amounts Reclassified from Details about Accumulated Other Affected Line Item in the Operations 2017 2016 Unrealized gains and losses on available for sale securities Other net realized investment gains $ (2,538 ) $ (8,214 ) Other than temporary impairment losses on investments 1,708 4,481 Total before tax (830 ) (3,733 ) Income tax expense 261 1,261 Unrealized gains and losses on available for sale securities, net of tax $ (569 ) $ (2,472 ) Foreign currency items Other net realized investment gains $ (336 ) $ (4 ) Income tax expense 117 2 Foreign currency items, net of tax $ (219 ) $ (2 ) Total reclassifications Total reclassifications, net of tax $ (788 ) $ (2,474 ) Net Realized Investment Gains (Losses) The components of net realized investment gains (losses) for the quarters and nine months ended September 30, 2017 and 2016 were as follows: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2017 2016 2017 2016 Fixed maturities: Gross realized gains $ 434 $ 434 $ 3,122 $ 1,252 Gross realized losses (300 ) (147 ) (2,358 ) (291 ) Net realized gains 134 287 764 961 Common stock: Gross realized gains 917 3,345 2,711 8,068 Gross realized losses (1,648 ) (2,462 ) (2,309 ) (5,292 ) Net realized gains (731 ) 883 402 2,776 Derivatives: Gross realized gains 486 1,955 822 — Gross realized losses (852 ) (1,197 ) (2,838 ) (12,794 ) Net realized gains (losses) (1) (366 ) 758 (2,016 ) (12,794 ) Total net realized investment gains (losses) $ (963 ) $ 1,928 $ (850 ) $ (9,057 ) (1) Includes periodic net interest settlements related to the derivatives of $0.9 million and $1.2 million for the quarters ended September 30, 2017 and 2016, respectively, and $2.8 million and $3.7 million for the nine months ended September 30, 2017 and 2016, respectively. The proceeds from sales and redemptions of available-for-sale Nine Months Ended September 30, (Dollars in thousands) 2017 2016 Fixed maturities $ 742,229 $ 279,659 Equity securities 24,483 34,976 Net Investment Income The sources of net investment income for the quarters and nine months ended September 30, 2017 and 2016 were as follows: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2017 2016 2017 2016 Fixed maturities $ 9,020 $ 8,131 $ 24,032 $ 22,729 Equity securities 906 698 2,740 2,647 Cash and cash equivalents 226 44 621 111 Other invested assets 655 909 2,423 3,806 Total investment income 10,807 9,782 29,816 29,293 Investment expense (1) (673 ) (987 ) (2,198 ) (4,190 ) Net investment income $ 10,134 $ 8,795 $ 27,618 $ 25,103 (1) Investment expense for the nine months ended September 30, 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 investment. The Company’s total investment return on a pre-tax Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2017 2016 2017 2016 Net investment income $ 10,134 $ 8,795 $ 27,618 $ 25,103 Net realized investment gains (losses) (963 ) 1,928 (850 ) (9,057 ) Change in unrealized holding gains and losses 5,631 2,061 14,721 25,398 Net realized and unrealized investment returns 4,668 3,989 13,871 16,341 Total investment return $ 14,802 $ 12,784 $ 41,489 $ 41,444 Total investment return % (1) 0.9 % 0.8 % 2.6 % 2.7 % Average investment portfolio $ 1,629,989 $ 1,530,599 $ 1,587,645 $ 1,522,247 (1) Not annualized. Insurance Enhanced Asset Backed and Credit Securities As of September 30, 2017, the Company held insurance enhanced asset-backed, commercial mortgage-backed, and credit securities with a market value of approximately $37.9 million. Approximately $4.2 million of these securities were tax free municipal bonds, which represented approximately 0.3% 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 “AA-.” pre-refunded pre-refunded (Dollars in thousands) Financial Guarantor Total Pre-refunded Government Exposure Net of Pre-refunded & Government Securities Ambac Financial Group $ 1,029 $ — $ — $ 1,029 Municipal Bond Insurance Association 1,191 — — 1,191 Gov’t National Housing Association 440 — 440 — Total backed by financial guarantors 2,660 — 440 2,220 Other credit enhanced municipal bonds 1,523 1,523 — — Total $ 4,183 $ 1,523 $ 440 $ 2,220 In addition to the tax-free 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 September 30, 2017. 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 September 30, 2017 and December 31, 2016: Estimated Fair Value (Dollars in thousands) September 30, 2017 December 31, 2016 On deposit with governmental authorities $ 28,489 $ 29,079 Intercompany trusts held for the benefit of U.S. policyholders 335,444 351,002 Held in trust pursuant to third party requirements 80,820 88,178 Letter of credit held for third party requirements 4,028 4,871 Securities held as collateral for borrowing arrangements (1) 93,736 85,939 Total $ 542,517 $ 559,069 (1) Amount required to collateralize margin borrowing facility. 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 three VIE’s for which it is not the primary beneficiary. These investments are accounted for under the equity method of accounting as their ownership interest exceeds 3% of their respective investments. The fair value of one of the Company’s VIE’s, which invests in distressed securities and assets, was $29.8 million and $32.9 million as of September 30, 2017 and December 31, 2016, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $44.0 million at September 30, 2017 and $48.6 million at December 31, 2016. The fair value of a second VIE that provides financing for middle market companies, was $26.8 million at September 30, 2017 and $33.2 million at December 31, 2016. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $38.6 million at September 30, 2017 and $42.3 million at December 31, 2016. During the 2 nd |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments | 3. 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 The following table summarizes information on the location and the gross amount of the derivatives’ fair value on the consolidated balance sheets as of September 30, 2017 and December 31, 2016: (Dollars in thousands) September 30, 2017 December 31, 2016 Derivatives Not Designated as Hedging Balance Sheet Location Notional Fair Value Notional Fair Value Interest rate swap agreements Other liabilities $ 200,000 $ (10,702 ) $ 200,000 $ (11,524 ) The following table summarizes the net gain (loss) included in the consolidated statements of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the quarters and nine months ended September 30, 2017 and 2016: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) Consolidated Statement of Operations Line 2017 2016 2017 2016 Interest rate swap agreements Net realized investment gains (losses) $ (366 ) $ 758 $ (2,016 ) $ (12,794 ) As of September 30, 2017 and December 31, 2016, the Company is due $3.3 million and $5.3 million, respectively, for funds it needed to post to execute the swap transaction and $14.2 million and $12.6 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 | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurements | 4. 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 September 30, 2017 and December 31, 2016, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. As of September 30, 2017 Fair Value Measurements (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 117,766 $ — $ — $ 117,766 Obligations of states and political subdivisions — 117,243 — 117,243 Mortgage-backed securities — 146,888 — 146,888 Commercial mortgage-backed securities — 139,093 — 139,093 Asset-backed securities — 209,520 — 209,520 Corporate bonds — 488,593 — 488,593 Foreign corporate bonds — 141,060 — 141,060 Total fixed maturities 117,766 1,242,397 — 1,360,163 Common stock 133,462 — — 133,462 Total assets measured at fair value (1) $ 251,228 $ 1,242,397 $ — $ 1,493,625 Liabilities: Derivative instruments $ — $ 10,702 $ — $ 10,702 Total liabilities measured at fair value $ — $ 10,702 $ — $ 10,702 (1) Excluded from the table above are limited partnerships of $73.6 million at September 30, 2017 whose fair value is based on net asset value as a practical expedient. 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. 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 September 30, 2017 and December 31, 2016 was as follows: September 30, 2017 December 31, 2016 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Margin Borrowing Facility $ 76,518 $ 76,518 $ 66,646 $ 66,646 7.75% Subordinated Notes due 2045 (1) 96,588 100,448 96,497 95,697 7.875% Subordinated Notes due 2047 (2) 125,829 130,009 — — Total $ 298,935 $ 306,975 $ 163,143 $ 162,343 (1) As of September 30, 2017 and December 31, 2016, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.4 million and $3.5 million, respectively. (2) As of September 30, 2017, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $4.2 million. The fair value of the margin borrowing facility approximates its carrying value due to the facility being due on demand. The subordinated notes due 2045 and 2047 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 quarters ended September 30, 2017 and 2016. Fair Value of Alternative Investments Other invested assets consist of limited liability partnerships whose fair value is based on net asset value per share as a practical expedient. The following table provides the fair value and future funding commitments related to these investments at September 30, 2017 and December 31, 2016. September 30, 2017 December 31, 2016 (Dollars in thousands) Fair Value Future Funding Fair Value Future Funding Real Estate Fund, LP (1) $ — $ — $ — $ — European Non-Performing 29,795 14,214 32,922 15,714 Private Middle Market Loan Fund, LP (3) 26,824 11,776 33,199 9,054 Distressed Debt Fund, LP (4) 16,934 33,500 — — Total $ 73,553 $ 59,490 $ 66,121 $ 24,768 (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 (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. (4) This limited partnership invests in stressed and distressed debt instruments. 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 to be redeemed no later than 2027. 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 or loss associated with these limited liability companies or limited partnerships, which is reflected in the consolidated statements of operations, was $0.7 million and $0.9 million during the quarters end September 30, 2017 and 2016, respectively, and $2.4 million and $3.7 million during the nine months ended September 30, 2017 and 2016, 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, • 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 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 the quarters and nine months ended September 30, 2017 and 2016, the Company has not adjusted quotes or prices obtained from the pricing vendors. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Taxes | 5. Income Taxes The statutory income tax rates of the countries where the Company conducts or conducted business are 35% in the United States, 0% in Bermuda, 0% in the Cayman Islands, 0% in Gibraltar, 27.08% in the Duchy of Luxembourg, 0.25% to 2.5% in Barbados, and 25% on non-trading pre-tax pre-tax The Company’s income before income taxes from its non-U.S. Quarter Ended September 30, 2017: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 50,812 $ 114,076 $ (38,834 ) $ 126,054 Net premiums written $ 50,800 $ 58,245 $ — $ 109,045 Net premiums earned $ 50,392 $ 58,227 $ — $ 108,619 Net investment income 14,631 6,584 (11,081 ) 10,134 Net realized investment losses (150 ) (813 ) — (963 ) Other income 40 2,254 — 2,294 Total revenues 64,913 66,252 (11,081 ) 120,084 Losses and Expenses: Net losses and loss adjustment expenses 31,044 51,351 — 82,395 Acquisition costs and other underwriting expenses 21,922 23,080 — 45,002 Corporate and other operating expenses 1,807 2,823 — 4,630 Interest expense 4,679 11,238 (11,081 ) 4,836 Income (loss) before income taxes $ 5,461 $ (22,240 ) $ — $ (16,779 ) Quarter Ended September 30, 2016: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 51,900 $ 123,770 $ (42,101 ) $ 133,569 Net premiums written $ 51,900 $ 63,151 $ — $ 115,051 Net premiums earned $ 54,155 $ 65,398 $ — $ 119,553 Net investment income 11,556 5,828 (8,589 ) 8,795 Net realized investment gains 58 1,870 — 1,928 Other income (loss) (10 ) 7,862 — 7,852 Total revenues 65,759 80,958 (8,589 ) 138,128 Losses and Expenses: Net losses and loss adjustment expenses 27,932 44,230 — 72,162 Acquisition costs and other underwriting expenses 24,651 23,478 — 48,129 Corporate and other operating expenses 2,906 2,100 — 5,006 Interest expense 2,081 8,741 (8,589 ) 2,233 Income before income taxes $ 8,189 $ 2,409 $ — $ 10,598 Nine Months Ended September 30, 2017: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 164,975 $ 348,331 $ (119,607 ) $ 393,699 Net premiums written $ 164,947 $ 179,401 $ — $ 344,348 Net premiums earned $ 150,384 $ 178,434 $ — $ 328,818 Net investment income 41,519 16,786 (30,687 ) 27,618 Net realized investment gains (losses) 87 (937 ) — (850 ) Other income 213 5,231 — 5,444 Total revenues 192,203 199,514 (30,687 ) 361,030 Losses and Expenses: Net losses and loss adjustment expenses 74,780 127,876 — 202,656 Acquisition costs and other underwriting expenses 65,544 69,466 — 135,010 Corporate and other operating expenses 4,137 6,908 — 11,045 Interest expense 11,653 31,099 (30,687 ) 12,065 Income (loss) before income taxes $ 36,089 $ (35,835 ) $ — $ 254 Nine Months Ended September 30, 2016: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 141,297 $ 394,312 $ (106,355 ) $ 429,254 Net premiums written $ 141,283 $ 215,950 $ — $ 357,233 Net premiums earned $ 162,594 $ 196,399 $ — $ 358,993 Net investment income 36,791 13,888 (25,576 ) 25,103 Net realized investment gains (losses) 128 (9,185 ) — (9,057 ) Other income 17 9,586 — 9,603 Total revenues 199,530 210,688 (25,576 ) 384,642 Losses and Expenses: Net losses and loss adjustment expenses 84,154 130,903 — 215,057 Acquisition costs and other underwriting expenses 71,758 77,003 — 148,761 Corporate and other operating expenses 7,181 5,883 — 13,064 Interest expense 6,233 26,020 (25,576 ) 6,677 Income (loss) before income taxes $ 30,204 $ (29,121 ) $ — $ 1,083 The following table summarizes the components of income tax benefit: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2017 2016 2017 2016 Current income tax expense: Foreign $ 107 $ 84 $ 290 $ 289 U.S. Federal 128 146 128 146 Total current income tax expense 235 230 418 435 Deferred income tax expense (benefit): U.S. Federal (8,090 ) 833 (13,611 ) (10,847 ) Total deferred income tax expense (benefit) (8,090 ) 833 (13,611 ) (10,847 ) Total income tax expense (benefit) $ (7,855 ) $ 1,063 $ (13,193 ) $ (10,412 ) The weighted average expected tax provision has been calculated using income before income taxes in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate: Quarters Ended September 30, (Dollars in thousands) 2017 2016 Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average rate $ (7,678 ) (45.8 %) $ 933 8.8 % Adjustments: Tax exempt interest (40 ) (0.2 ) (101 ) (1.0 ) Dividend exclusion (144 ) (0.9 ) (3 ) 0.0 Other 7 0.1 234 2.2 Actual tax on continuing operations $ (7,855 ) (46.8 %) $ 1,063 10.0 % The effective income tax benefit rate for the quarter ended September 30, 2017 was 46.8%, compared with an effective income tax rate of 10.0% for the quarter ended September 30, 2016. The increase in the income tax benefit rate is primarily due to losses incurred in the Company’s U.S. operations for the quarter ended September 30, 2017 as compared to a gain in 2016. Taxes were computed using a discrete period computation because a reliable estimate of an effective tax rate could not be made. Nine Months Ended September 30, (Dollars in thousands) 2017 2016 Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average rate $ (12,252 ) (4,823.6 %) $ (9,896 ) (913.8 %) Adjustments: Tax exempt interest (191 ) (75.2 ) (304 ) (28.1 ) Dividend exclusion (410 ) (161.4 ) (480 ) (44.3 ) Other (340 ) (133.9 ) 268 24.8 Actual tax on continuing operations $ (13,193 ) (5,194.1 %) $ (10,412 ) (961.4 %) The effective income tax benefit rate for the nine months ended September 30, 2017 was 5,194.1%, compared with an effective income tax benefit rate of 961.4% for the nine months ended September 30, 2016. The increase in the income tax benefit rate is primarily due to higher losses incurred in the Company’s U.S. operations for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016. Taxes were computed using a discrete period computation because a reliable estimate of an effective tax rate could not be made. The Company has an alternative minimum tax (“AMT”) credit carryforward of $11.0 million as of September 30, 2017 and December 31, 2016, which can be carried forward indefinitely. The Company has a net operating loss (“NOL”) carryforward of $21.8 million as of September 30, 2017, which begins to expire in 2035 based on when the original NOL was generated, and a NOL carryforward of $3.2 million as of December 31, 2016. The Company has a Section 163(j) (“163(j)”) carryforward of $6.0 million and $8.1 million as of September 30, 2017 and December 31, 2016, 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. |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 9 Months Ended |
Sep. 30, 2017 | |
Liability for Unpaid Losses and Loss Adjustment Expenses | 6. Liability for Unpaid Losses and Loss Adjustment Expenses Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2017 2016 2017 2016 Balance at beginning of period $ 615,763 $ 683,850 $ 651,042 $ 680,047 Less: Ceded reinsurance receivables 104,245 111,579 130,439 108,130 Net balance at beginning of period 511,518 572,271 520,603 571,917 Purchased reserves, gross 9,063 1,410 18,024 1,410 Purchased reserves ceded 63 641 573 641 Purchased reserves, net of third party reinsurance 9,126 2,051 18,597 2,051 Incurred losses and loss adjustment expenses related to: Current year 91,766 81,579 237,460 239,991 Prior years (9,371 ) (9,417 ) (34,804 ) (24,934 ) Total incurred losses and loss adjustment expenses 82,395 72,162 202,656 215,057 Paid losses and loss adjustment expenses related to: Current year 45,193 49,704 115,927 113,090 Prior years 25,190 35,147 93,273 114,302 Total paid losses and loss adjustment expenses 70,383 84,851 209,200 227,392 Net balance at end of period 532,656 561,633 532,656 561,633 Plus: Ceded reinsurance receivables 117,070 102,749 117,070 102,749 Balance at end of period $ 649,726 $ 664,382 $ 649,726 $ 664,382 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. In the third quarter of 2017, the Company reduced its prior accident year loss reserves by $9.4 million, which consisted of a $7.3 million decrease related to Commercial Lines, a $1.3 million decrease related to Personal Lines, and a $0.8 million decrease related to Reinsurance Operations. The $7.3 million reduction of prior accident year loss reserves related to Commercial Lines primarily consisted of the following: • General Liability: • Professional Liability: The $1.3 million reduction of prior accident year loss reserves related to Personal Lines reflects $1.3 million in subrogation recoveries involving the 2015 wildfire. The $0.8 million reduction related to Reinsurance Operations was from the property lines. Ultimate losses were lowered primarily in the 2015 accident year and partially offset by an increase in the 2016 accident year based on a review of the experience reported from cedants. In the third quarter of 2016, the Company reduced its prior accident year loss reserves by $9.4 million, which consisted of a $6.5 million decrease related to Commercial Lines and a $2.9 million decrease related to Reinsurance Operations. The $6.5 million reduction of prior accident year loss reserves related to Commercial Lines primarily consisted of the following: • General Liability: • Property: The $2.9 million reduction related to Reinsurance Operations was from the property lines. Ultimate losses were lowered in the 2014 and 2015 accident years based on a review of the experience reported from cedants. During the first nine months of 2017, the Company reduced its prior accident year loss reserves by $34.8 million, which consisted of a $26.2 million decrease related to Commercial Lines, a $4.5 million decrease related to Personal Lines, and a $4.1 million decrease related to Reinsurance Operations. The $26.2 million reduction of prior accident year loss reserves related to Commercial Lines primarily consisted of the following: • General Liability: • Professional Liability: • Property: The $4.5 million reduction of prior accident year loss reserves related to Personal Lines primarily consisted of the following: • Property: • General Liability: The $4.1 million reduction of prior accident year loss reserve related to Reinsurance Operations was from the property lines. Ultimate losses were lowered in the 2013 through 2015 accident years and partially offset by an increase in the 2016 accident year based on a review of the experience reported from cedants. In the first nine months of 2016, the Company decreased its prior accident year loss reserves by $24.9 million, which consisted of an $18.8 million decrease related to Commercial Lines and a $6.1 million decrease related to Reinsurance Operations. The $18.8 million decrease related to Commercial Lines primarily consisted of the following: • General Liability: • Property: non-catastrophe The $6.1 million reduction related to Reinsurance Operations was from the property lines. Ultimate losses were lowered for the 2013 through 2015 accident years due to lower than expected emergence of catastrophe losses. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt | 7. Debt 7.875% Subordinated Notes due 2047 On March 23, 2017, the Company issued Subordinated Notes due in 2047 in the aggregate principal amount of $120.0 million through an underwritten public offering (the “2047 Notes”). Pursuant to the underwriting agreement, the Company granted the underwriters a 30 day option to purchase up to an additional $18 million aggregate principal amount of the 2047 Notes solely to cover over-allotments, if any. On March 30, 2017, the underwriters exercised their over-allotment option in the amount of $10 million principal amount of the 2047 Notes. As a result, the aggregate principal amount of the 2047 Notes increased to $130.0 million. The sale of the 2047 Notes pursuant to the over-allotment option closed on March 30, 2017. The 2047 Notes bear interest at an annual rate equal to 7.875%, payable quarterly in arrears on January 15, April 15, July 15, and October 15 of each year, commencing July 15, 2017. The 2047 Notes mature on April 15, 2047. The Company has the right to redeem the 2047 Notes in $25 increments, in whole or in part, on and after April 15, 2022, or on any interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the 2047 Notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption. If the Company redeems only a portion of the 2047 Notes on any date of redemption, the Company may subsequently redeem additional 2047 Notes. The 2047 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 existing unsecured, subordinated debt that the Company has issued or may issue in the future that ranks equally with the 2047 Notes, including the Company’s 7.75% subordinated notes for $100.0 million due 2045 and (iv) subordinate in right of payment to any of the Company’s future senior debt. In addition, the 2047 Notes are structurally subordinated to all existing and future indebtedness, liabilities and other obligations of the Company’s subsidiaries including the Company’s margin borrowing facilities. The 2047 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 2047 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 2047 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 2047 Notes. There is no right of acceleration of maturity of the 2047 Notes in the case of default in the payment of principal, premium, if any, or interest on, the 2047 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 2047 Notes only upon the Company’s bankruptcy, insolvency or reorganization. The Company incurred $4.2 million in deferred issuance costs associated with the 2047 Notes, which is being amortized over the term of the 2047 Notes. Interest expense, including amortization of deferred issuance costs, recognized on the 2047 Notes was $2.6 million and $5.4 million for the quarters and nine months ended September 30, 2017, respectively. Please see Note 12 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2016 Annual Report on Form 10-K |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Shareholders' Equity | 8. Shareholders’ Equity No A ordinary shares were repurchased during the quarters ended September 30, 2017 or 2016. During the nine months ended September 30, 2017 and 2016, the Company repurchased 29,551 shares and 28,099 shares, respectively, with an average price paid of $39.24 per share and $ 28.64 per share, respectively. The Company repurchased these shares from employees as payment for the tax liability incurred upon the vesting of the employee’s restricted stock in accordance with the Company’s Share Incentive Plan. There were no B ordinary shares that were repurchased during the quarters ended September 30, 2017 or 2016. Please see Note 13 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2016 Annual Report on Form 10-K |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions | 9. Related Party Transactions Fox Paine & Company (“Fox Paine”) As of September 30, 2017, Fox Paine beneficially owned shares having approximately 84% of the Company’s total outstanding voting power. Fox Paine 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 for so long as Fox Paine holds an aggregate of 25% or more of the voting power in the Company. Fox Paine 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. The Company relies on Fox Paine to provide management services and other services related to the operations of the Company, and Fox Paine may propose and negotiate transaction fees with the Company, subject to the provisions of the Company’s related party transaction policies including approval of the Company’s Audit Committee of the Board of Directors, for those services from time to time. The Company incurred management fees of $0.6 million and $0.5 million during the quarters ended September 30, 2017 and 2016, respectively, and $1.6 million and $1.5 million during the nine months ended September 30, 2017 and 2016, respectively, as part of the annual management fee paid to Fox Paine. As of September 30, 2017 and December 31, 2016, unpaid management fees, which were included in other liabilities on the consolidated balance sheets, were $6.3 million and $4.6 million, respectively. On September 17, 2017, the Company and Fox Paine entered into a confidentiality agreement whereby Fox Paine agrees to keep confidential proprietary information, as defined in the confidentiality agreement, it receives regarding the Company from time to time, including proprietary information it may receive from director or director nominees appointed by Fox Paine. Crystal & Company The Company incurred $0.1 million and $0.2 million in brokerage fees to Crystal & Company, an insurance broker, during the quarter and nine months ended September 30, 2016, respectively. 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. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies | 10. Commitments and Contingencies Legal Proceedings The Company is, from time to time, involved in various legal proceedings in the ordinary course of business. The Company maintains insurance and reinsurance coverage for such risks in amounts that it considers adequate. However, there can be no assurance that the insurance and reinsurance coverage that the Company maintains is sufficient or will be available in adequate amounts or at a reasonable cost. The Company does not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material adverse effect on its business, results of operations, cash flows, or financial condition. There is a greater potential for disputes with reinsurers who are in runoff. Some of the Company’s reinsurers’ have operations that are in runoff, and therefore, the Company closely monitors those relationships. The Company anticipates that, similar to the rest of the insurance and reinsurance industry, it will continue to be subject to litigation and arbitration proceedings in the ordinary course of business. Commitments In 2014, the Company entered into a $50 million commitment to purchase an alternative investment vehicle which is comprised of European non-performing In 2016, the Company entered into a $40 million commitment with an investment manager that provides financing for middle market companies. As of September 30, 2017, the Company has funded $28.2 million of this commitment leaving $11.8 million as unfunded. In 2017, the Company entered into a $50 million commitment to purchase an alternative investment vehicle comprised of stressed and distressed debt instruments. As of September 30, 2017, the Company has funded $16.5 million of this commitment leaving $33.5 million as unfunded. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 9 Months Ended |
Sep. 30, 2017 | |
Share-Based Compensation Plans | 11. Share-Based Compensation Plans Effective January 1, 2017, the Company adopted new accounting guidance which changed several aspects of the accounting for share-based payment transactions. Under the new guidance, all excess tax benefits and tax deficiencies associated with share-based payment awards are required to be recognized as an income tax benefit or expense in net income with the corresponding cash flows recognized as an operating activity in the Consolidated Statement of Cash Flow as opposed to being reported separately as a financing activity. Excess tax benefits and deficiencies are no longer recognized in additional paid-in-capital. Upon adoption of this new accounting guidance, the Company elected to retain its policy of accruing the compensation cost based on the number of awards that are expected to vest. The adoption of this accounting guidance did not result in any cumulative adjustment or restatement. The provisions of this new guidance were adopted on a prospective basis and did not have a material impact on the Company’s financial position, results of operations or cash flows. Options No stock options were awarded during the quarters ended September 30, 2017 or 2016. No unvested stock options were forfeited during the quarters ended September 30, 2017 and 2016. The Company did not award any stock options during the nine months ended September 30, 2017 or 2016. No unvested stock options were forfeited during the nine months ended September 30, 2017. 200,000 unvested stock options were forfeited during the nine months ended September 30, 2016. Restricted Shares No restricted shares were issued to employees during the quarters ended September 30, 2017 and 2016. During the nine months ended September 30, 2017, the Company granted 22,503 A ordinary shares, with a weighted average grant date value of $38.21 per share, to key employees under the Plan. These shares will vest as follows: • 16.5%, 16.5%, and 17.0% of the granted stock vest on January 1, 2018, January 1, 2019, and January 1, 2020, respectively. • Subject to Board approval, 50% of granted stock vests 100%, no later than March 15, 2020, following a re-measurement During the nine months ended September 30, 2016, the Company granted 121,346 A ordinary shares, with a weighted average grant date value of $28.97 per share, to key employees under the Plan. Of the shares granted during the nine months ended September 30, 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 a true-up • 16.5% vested on January 1, 2017. 16.5% and 17.0% of the granted stock will vest on January 1, 2018 and January 1, 2019, respectively. • Subject to Board approval 50% of granted stock vests 100%, no later than March 15, 2019, following a re-measurement During the quarters ended September 30, 2017 and 2016, the Company granted 6,245 and 8,802 A ordinary shares, respectively, at a weighted average grant date value of $42.40 and $29.70 per share, respectively, to non-employee non-employee non-employee |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share | 12. 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: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands, except share and per share data) 2017 2016 2017 2016 Net income (loss) $ (8,924 ) $ 9,535 $ 13,447 $ 11,495 Basic earnings per share: Weighted average shares outstanding – basic 17,343,292 17,254,843 17,331,840 17,241,040 Net income (loss) per share $ (0.51 ) $ 0.55 $ 0.78 $ 0.67 Diluted earnings per share: Weighted average shares outstanding – diluted (1) 17,343,292 17,540,060 17,684,519 17,515,854 Net income (loss) per share $ (0.51 ) $ 0.54 $ 0.76 $ 0 .66 (1) For the quarter ended September 30, 2017, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss for the period. A reconciliation of weighted average shares for basic earnings per share to weighted average shares for diluted earnings per share is as follows: Quarters Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Weighted average shares for basic earnings per share 17,343,292 17,254,843 17,331,840 17,241,040 Non-vested — 176,087 149,490 165,011 Options — 109,130 203,189 109,803 Weighted average shares for diluted earnings per share 17,343,292 17,540,060 17,684,519 17,515,854 If the Company had not incurred a loss in the quarter ended September 30, 2017, 17,721,954 weighted average shares would have been used to compute the diluted loss per share calculation which would have included 164,693 shares of non-vested The weighted average shares outstanding used to determine dilutive earnings per share for the quarter and nine months ended September 30, 2016 do not include 300,000 shares which were deemed to be anti-dilutive. There were no anti-dilutive shares for the quarter or nine months ended September 30, 2017. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Information | 13. Segment Information The Company manages its business through three business segments. Commercial Lines offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs. Personal Lines offers specialty personal lines and agricultural coverage. Reinsurance Operations provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. During the 1 st re-evaluated The following are tabulations of business segment information for the quarters and nine months ended September 30, 2017 and 2016. Quarter Ended September 30, 2017: (Dollars in thousands) Commercial Lines (1) Personal Lines (1) Reinsurance Total Revenues: Gross premiums written $ 53,113 $ 60,962 (6) $ 11,979 $ 126,054 Net premiums written $ 46,471 $ 50,607 $ 11,967 $ 109,045 Net premiums earned $ 44,778 $ 52,268 $ 11,573 $ 108,619 Other income — 2,254 40 2,294 Total revenues 44,778 54,522 11,613 110,913 Losses and Expenses: Net losses and loss adjustment expenses 19,095 42,534 20,766 82,395 Acquisition costs and other underwriting expenses 18,237 (3) 22,689 (4) 4,076 45,002 Income (loss) from segments $ 7,446 $ (10,701 ) $ (13,229 ) $ (16,484 ) Unallocated Items: Net investment income 10,134 Net realized investment loss (963 ) Corporate and other operating expenses (4,630 ) Interest expense (4,836 ) Loss before income taxes (16,779 ) Income tax benefit 7,855 Net loss (8,924 ) Total assets $ 911,412 $ 481,357 $ 737,921 (5) $ 2,130,690 (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 $127 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $262 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 ($1,427) of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. Quarter Ended September 30, 2016: (Dollars in thousands) Commercial Personal Lines (1) Reinsurance Total Revenues: Gross premiums written $ 49,505 $ 74,266 (6) $ 9,798 $ 133,569 Net premiums written $ 45,074 $ 60,179 $ 9,798 $ 115,051 Net premiums earned $ 47,774 $ 61,221 $ 10,558 $ 119,553 Other income (loss) 6,872 991 (11 ) 7,852 Total revenues 54,646 62,212 10,547 127,405 Losses and Expenses: Net losses and loss adjustment expenses 23,848 42,927 5,387 72,162 Acquisition costs and other underwriting expenses 20,048 (3) 24,411 (4) 3,670 48,129 Income (loss) from segments $ 10,750 $ (5,126 ) $ 1,490 $ 7,114 Unallocated Items: Net investment income 8,795 Net realized investment gains 1,928 Corporate and other operating expenses (5,006 ) Interest expense (2,233 ) Income before income taxes 10,598 Income tax expense (1,063 ) Net income 9,535 Total assets $ 770,255 $ 499,202 $ 712,358 (5) $ 1,981,815 (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 $130 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $306 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 $7,328 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. Nine Months Ended September 30, 2017: (Dollars in thousands) Commercial Personal Reinsurance Total Revenues: Gross premiums written $ 155,776 $ 192,551 (6) $ 45,372 $ 393,699 Net premiums written $ 137,025 $ 161,979 $ 45,344 $ 344,348 Net premiums earned $ 133,289 $ 164,102 $ 31,427 $ 328,818 Other income 78 5,153 213 5,444 Total revenues 133,367 169,255 31,640 334,262 Losses and Expenses: Net losses and loss adjustment expenses 53,688 120,410 28,558 202,656 Acquisition costs and other underwriting expenses 55,398 (3) 69,281 (4) 10,331 135,010 Income (loss) from segments $ 24,281 $ (20,436 ) $ (7,249 ) $ (3,404 ) Unallocated Items: Net investment income 27,618 Net realized investment loss (850 ) Corporate and other operating expenses (11,045 ) Interest expense (12,065 ) Income before income taxes 254 Income tax benefit 13,193 Net income 13,447 Total assets $ 911,412 $ 481,357 $ 737,921 (5) $ 2,130,690 (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 $366 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $821 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 ($185) of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. Nine Months Ended September 30, 2016: (Dollars in thousands) Commercial Personal Lines (1) Reinsurance Total Revenues: Gross premiums written $ 155,686 $ 238,627 (6) $ 34,941 $ 429,254 Net premiums written $ 140,199 $ 182,107 $ 34,927 $ 357,233 Net premiums earned $ 142,749 $ 184,581 $ 31,663 $ 358,993 Other income 6,872 2,714 17 9,603 Total revenues 149,621 187,295 31,680 368,596 Losses and Expenses: Net losses and loss adjustment expenses 78,813 122,540 13,704 215,057 Acquisition costs and other underwriting expenses 60,784 (3) 76,349 (4) 11,628 148,761 Income (loss) from segments $ 10,024 $ (11,594 ) $ 6,348 $ 4,778 Unallocated Items: Net investment income 25,103 Net realized investment losses (9,057 ) Corporate and other operating expenses (13,064 ) Interest expense (6,677 ) Income before income taxes 1,083 Income tax benefit 10,412 Net income 11,495 Total assets $ 770,255 $ 499,202 $ 712,358 (5) $ 1,981,815 (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 $386 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $923 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 $30,910 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements | 14. New Accounting Pronouncements In May, 2017, the Financial Accounting Standards Board (“FASB”) issued updated accounting guidance which clarifies whether changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This guidance is effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. 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 March, 2017, the FASB issued new accounting guidance which amends the amortization period for certain purchased callable debt securities held at a premium. Under current generally accepted accounting principles, entities generally amortize the premium as an adjustment of yield over the contractual life of the instruments. Under the new guidance, the amortizations period would be shortened to the earliest call date. This guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company is still evaluating the impact of this guidance on its financial condition, results of operations, and cash flows. In January, 2017, the FASB issued updated guidance that simplifies how an entity is required to test goodwill for impairment by eliminating the requirement to calculate the implied fair value of goodwill (i.e. Step 2 of the current goodwill impairment test). Under the new amendments, an entity may still first assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized, if any. A goodwill impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. This guidance is effective for public business entities’ annual or interim goodwill impairment testing in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. 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, 2017, the FASB amended The Accounting Standards Codification to incorporate SEC Staff Announcements at the September 22, 2016 and November 17, 2016 Emerging Issues Task Force (EITF) Meetings. The announcement from September 22, 2016 specifically addresses Accounting Standards Update (ASU) No. 2014-09, No. 2016-02, No. 2016-13, In February, 2016, the FASB issued ASU No. 2016-02, right-of-use In June, 2016, the FASB issued ASU 2016-13, In May, 2014, the FASB issued (ASU) No. 2014-09, Please see Note 22 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2016 Annual Report on Form 10-K |
Principles of Consolidation a23
Principles of Consolidation and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Business Segments | The Company manages its business through three business segments: Commercial Lines, Personal Lines, and Reinsurance Operations. The Company’s Commercial Lines offers specialty property and casualty insurance products in the excess and surplus lines marketplace. The Company manages its Commercial Lines by differentiating them into four 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; 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; and Vacant Express, which insures dwellings which are currently vacant, undergoing renovation, or are under construction and is distributed through aggregators, brokers, and retail agents. 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 offers specialty personal lines and agricultural coverage through general and specialty agents with specific binding authority on an admitted basis. Collectively, the Company’s U.S. insurance subsidiaries are licensed in all 50 states and the District of Columbia. The Commercial Lines and Personal Lines segments comprise the Company’s U.S. Insurance Operations (‘Insurance Operations”). The Company’s Reinsurance Operations consist solely of the operations of its Bermuda-based wholly-owned subsidiary, Global Indemnity Reinsurance Company, Ltd. (“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. During the 1 st re-evaluated |
Intercompany Balances and Transactions | The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and nine months ended September 30, 2017 and 2016 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2016 Annual Report on Form 10-K. 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 Policy | 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. |
Derivative Instruments Policy | The Company accounts for the interest rate swaps as non-hedge |
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. 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, • 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 expected annual taxable income of the Company in each country to estimate the annual income tax expense. Generally, during interim periods, the Company will divide total estimated annual income tax expense by total estimated annual pre-tax pre-tax |
Loss Reserves and Prior Year Development | When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates. |
Earnings Per Share Policy | Earnings per share have been computed using the weighted average number of ordinary shares and ordinary share equivalents outstanding during the period. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Schedule of Amortized Cost and Estimated Fair Value of Investments | The amortized cost and estimated fair value of investments were as follows as of September 30, 2017 and December 31, 2016: (Dollars in thousands) Amortized Cost Gross Gross Estimated Other than As of September 30, 2017 Fixed maturities: U.S. treasury and agency obligations $ 117,596 $ 665 $ (495 ) $ 117,766 $ — Obligations of states and political subdivisions 116,508 991 (256 ) 117,243 — Mortgage-backed securities 146,800 650 (562 ) 146,888 — Asset-backed securities 209,028 634 (142 ) 209,520 (1 ) Commercial mortgage-backed securities 139,740 94 (741 ) 139,093 — Corporate bonds 485,580 3,851 (838 ) 488,593 — Foreign corporate bonds 140,438 810 (188 ) 141,060 — Total fixed maturities 1,355,690 7,695 (3,222 ) 1,360,163 (1 ) Common stock 124,064 13,148 (3,750 ) 133,462 — Other invested assets 73,553 — — 73,553 — Total $ 1,553,307 $ 20,843 $ (6,972 ) $ 1,567,178 $ (1 ) (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, 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”). |
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 September 30, 2017, 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 $ 86,480 $ 86,515 Due in one year through five years 493,819 495,425 Due in five years through ten years 273,515 276,346 Due in ten years through fifteen years 592 598 Due after fifteen years 5,716 5,778 Mortgage-backed securities 146,800 146,888 Asset-backed securities 209,028 209,520 Commercial mortgage-backed securities 139,740 139,093 Total $ 1,355,690 $ 1,360,163 |
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 September 30, 2017: 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 $ 96,336 $ (489 ) $ 594 $ (6 ) $ 96,930 $ (495 ) Obligations of states and political subdivisions 27,806 (199 ) 8,629 (57 ) 36,435 (256 ) Mortgage-backed securities 105,162 (554 ) 297 (8 ) 105,459 (562 ) Asset-backed securities 41,719 (142 ) — — 41,719 (142 ) Commercial mortgage-backed securities 97,191 (639 ) 6,727 (102 ) 103,918 (741 ) Corporate bonds 125,550 (600 ) 17,493 (238 ) 143,043 (838 ) Foreign corporate bonds 40,145 (87 ) 10,446 (101 ) 50,591 (188 ) Total fixed maturities 533,909 (2,710 ) 44,186 (512 ) 578,095 (3,222 ) Common stock 29,150 (3,750 ) — — 29,150 (3,750 ) Total $ 563,059 $ (6,460 ) $ 44,186 $ (512 ) $ 607,245 $ (6,972 ) (1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit 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 |
Schedule of Other Than Temporary Impairments on Investments | The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the quarters and nine months ended September 30, 2017 and 2016: Quarters Ended September 30, Nine Months Ended (Dollars in thousands) 2017 2016 2017 2016 Fixed maturities: OTTI losses, gross $ — $ (108 ) $ (31 ) $ (201 ) Portion of loss recognized in other comprehensive income (pre-tax) — — — — Net impairment losses on fixed maturities recognized in earnings — (108 ) (31 ) (201 ) Equity securities (1,020 ) (2,106 ) (1,677 ) (4,280 ) Total $ (1,020 ) $ (2,214 ) $ (1,708 ) $ (4,481 ) |
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 for the quarters and nine months ended September 30, 2017 and 2016 for which a portion of the OTTI loss was recognized in other comprehensive income. Quarters Ended September 30, Nine Months Ended (Dollars in thousands) 2017 2016 2017 2016 Balance at beginning of period $ 16 $ 31 $ 31 $ 31 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 (3 ) — (18 ) — Balance at end of period $ 13 $ 31 $ 13 $ 31 |
Schedule of Accumulated Other Comprehensive Income, Net of Tax | Accumulated Other Comprehensive Income, Net of Tax Accumulated other comprehensive income, net of tax, as of September 30, 2017 and December 31, 2016 was as follows: (Dollars in thousands) September 30, 2017 December 31, 2016 Net unrealized gains (losses)from: Fixed maturities $ 4,473 $ (1,308 ) Common stock 9,398 1,042 Foreign currency fluctuations 584 — Deferred taxes (4,370 ) (352 ) Accumulated other comprehensive income, net of tax $ 10,085 $ (618 ) |
Changes in Accumulated Other Comprehensive Income | The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the quarters and nine months ended September 30, 2017 and 2016: Quarter Ended September 30, 2017 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ 5,549 $ 437 $ 5,986 Other comprehensive income (loss) before reclassification 3,173 485 3,658 Amounts reclassified from accumulated other comprehensive income (loss) 653 (212 ) 441 Other comprehensive income (loss) 3,826 273 4,099 Ending balance $ 9,375 $ 710 $ 10,085 Quarter Ended September 30, 2016 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ 22,511 $ (435 ) $ 22,076 Other comprehensive income (loss) before reclassification 2,073 (89 ) 1,984 Amounts reclassified from accumulated other Comprehensive loss (781 ) — (781 ) Other comprehensive income (loss) 1,292 (89 ) 1,203 Ending balance $ 23,803 $ (524 ) $ 23,279 Nine Months Ended September 30, 2017 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ (554 ) $ (64 ) $ (618 ) Other comprehensive income (loss) before reclassification 10,498 993 11,491 Amounts reclassified from accumulated other comprehensive income (loss) (569 ) (219 ) (788 ) Other comprehensive income (loss) 9,929 774 10,703 Ending balance $ 9,375 $ 710 $ 10,085 Nine Months Ended September 30, 2016 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ 4,200 $ (122 ) $ 4,078 Other comprehensive income (loss) before reclassification 22,075 (400 ) 21,675 Amounts reclassified from accumulated other comprehensive loss (2,472 ) (2 ) (2,474 ) Other comprehensive income (loss) 19,603 (402 ) 19,201 Ending balance $ 23,803 $ (524 ) $ 23,279 |
Reclassifications Out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive income for the quarters and nine months ended September 30, 2017 and 2016 were as follows: (Dollars in thousands) Amounts Reclassified from Details about Accumulated Other Affected Line Item in the Operations 2017 2016 Unrealized gains and losses on available for sale securities Other net realized investment gains $ (97 ) $ (3,384 ) Other than temporary impairment losses on investments 1,020 2,214 Total before tax 923 (1,170 ) Income tax expense (270 ) 389 Unrealized gains and losses on available for sale securities, net of tax $ 653 $ (781 ) Foreign currency items Other net realized investment gains $ (326 ) $ — Income tax expense 114 — Foreign currency items, net of tax $ (212 ) $ — Total reclassifications Total reclassifications, net of tax $ 441 $ (781 ) (Dollars in thousands) Amounts Reclassified from Details about Accumulated Other Affected Line Item in the Operations 2017 2016 Unrealized gains and losses on available for sale securities Other net realized investment gains $ (2,538 ) $ (8,214 ) Other than temporary impairment losses on investments 1,708 4,481 Total before tax (830 ) (3,733 ) Income tax expense 261 1,261 Unrealized gains and losses on available for sale securities, net of tax $ (569 ) $ (2,472 ) Foreign currency items Other net realized investment gains $ (336 ) $ (4 ) Income tax expense 117 2 Foreign currency items, net of tax $ (219 ) $ (2 ) Total reclassifications Total reclassifications, net of tax $ (788 ) $ (2,474 ) |
Components of Net Realized Investment Gains (Losses) | The components of net realized investment gains (losses) for the quarters and nine months ended September 30, 2017 and 2016 were as follows: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2017 2016 2017 2016 Fixed maturities: Gross realized gains $ 434 $ 434 $ 3,122 $ 1,252 Gross realized losses (300 ) (147 ) (2,358 ) (291 ) Net realized gains 134 287 764 961 Common stock: Gross realized gains 917 3,345 2,711 8,068 Gross realized losses (1,648 ) (2,462 ) (2,309 ) (5,292 ) Net realized gains (731 ) 883 402 2,776 Derivatives: Gross realized gains 486 1,955 822 — Gross realized losses (852 ) (1,197 ) (2,838 ) (12,794 ) Net realized gains (losses) (1) (366 ) 758 (2,016 ) (12,794 ) Total net realized investment gains (losses) $ (963 ) $ 1,928 $ (850 ) $ (9,057 ) (1) Includes periodic net interest settlements related to the derivatives of $0.9 million and $1.2 million for the quarters ended September 30, 2017 and 2016, respectively, and $2.8 million and $3.7 million for the nine months ended September 30, 2017 and 2016, respectively. |
Proceeds from Sales and Redemptions of Available-for-Sale Securities | The proceeds from sales and redemptions of available-for-sale Nine Months Ended September 30, (Dollars in thousands) 2017 2016 Fixed maturities $ 742,229 $ 279,659 Equity securities 24,483 34,976 |
Schedule of Investment Income | The sources of net investment income for the quarters and nine months ended September 30, 2017 and 2016 were as follows: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2017 2016 2017 2016 Fixed maturities $ 9,020 $ 8,131 $ 24,032 $ 22,729 Equity securities 906 698 2,740 2,647 Cash and cash equivalents 226 44 621 111 Other invested assets 655 909 2,423 3,806 Total investment income 10,807 9,782 29,816 29,293 Investment expense (1) (673 ) (987 ) (2,198 ) (4,190 ) Net investment income $ 10,134 $ 8,795 $ 27,618 $ 25,103 (1) Investment expense for the nine months ended September 30, 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 investment. |
Schedule of Total Investment Return | The Company’s total investment return on a pre-tax Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2017 2016 2017 2016 Net investment income $ 10,134 $ 8,795 $ 27,618 $ 25,103 Net realized investment gains (losses) (963 ) 1,928 (850 ) (9,057 ) Change in unrealized holding gains and losses 5,631 2,061 14,721 25,398 Net realized and unrealized investment returns 4,668 3,989 13,871 16,341 Total investment return $ 14,802 $ 12,784 $ 41,489 $ 41,444 Total investment return % (1) 0.9 % 0.8 % 2.6 % 2.7 % Average investment portfolio $ 1,629,989 $ 1,530,599 $ 1,587,645 $ 1,522,247 (1) Not annualized. |
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 (Dollars in thousands) Financial Guarantor Total Pre-refunded Government Exposure Net of Pre-refunded & Government Securities Ambac Financial Group $ 1,029 $ — $ — $ 1,029 Municipal Bond Insurance Association 1,191 — — 1,191 Gov’t National Housing Association 440 — 440 — Total backed by financial guarantors 2,660 — 440 2,220 Other credit enhanced municipal bonds 1,523 1,523 — — Total $ 4,183 $ 1,523 $ 440 $ 2,220 |
Summary of Estimated Fair Values of Bonds Held on Deposit | The fair values were as follows as of September 30, 2017 and December 31, 2016: Estimated Fair Value (Dollars in thousands) September 30, 2017 December 31, 2016 On deposit with governmental authorities $ 28,489 $ 29,079 Intercompany trusts held for the benefit of U.S. policyholders 335,444 351,002 Held in trust pursuant to third party requirements 80,820 88,178 Letter of credit held for third party requirements 4,028 4,871 Securities held as collateral for borrowing arrangements (1) 93,736 85,939 Total $ 542,517 $ 559,069 (1) Amount required to collateralize margin borrowing facility. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Summary of Net Gain (Loss) Included in Consolidated Statements of Operations for Changes in Fair Value of Derivatives and Periodic Net Interest Settlements Under Derivatives | The following table summarizes information on the location and the gross amount of the derivatives’ fair value on the consolidated balance sheets as of September 30, 2017 and December 31, 2016: (Dollars in thousands) September 30, 2017 December 31, 2016 Derivatives Not Designated as Hedging Balance Sheet Location Notional Fair Value Notional Fair Value Interest rate swap agreements Other liabilities $ 200,000 $ (10,702 ) $ 200,000 $ (11,524 ) |
Summarized Information of Location and Gross Amount of Derivatives' Fair Value in Consolidated Balance Sheets | The following table summarizes the net gain (loss) included in the consolidated statements of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the quarters and nine months ended September 30, 2017 and 2016: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) Consolidated Statement of Operations Line 2017 2016 2017 2016 Interest rate swap agreements Net realized investment gains (losses) $ (366 ) $ 758 $ (2,016 ) $ (12,794 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 and December 31, 2016, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. As of September 30, 2017 Fair Value Measurements (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 117,766 $ — $ — $ 117,766 Obligations of states and political subdivisions — 117,243 — 117,243 Mortgage-backed securities — 146,888 — 146,888 Commercial mortgage-backed securities — 139,093 — 139,093 Asset-backed securities — 209,520 — 209,520 Corporate bonds — 488,593 — 488,593 Foreign corporate bonds — 141,060 — 141,060 Total fixed maturities 117,766 1,242,397 — 1,360,163 Common stock 133,462 — — 133,462 Total assets measured at fair value (1) $ 251,228 $ 1,242,397 $ — $ 1,493,625 Liabilities: Derivative instruments $ — $ 10,702 $ — $ 10,702 Total liabilities measured at fair value $ — $ 10,702 $ — $ 10,702 (1) Excluded from the table above are limited partnerships of $73.6 million at September 30, 2017 whose fair value is based on net asset value as a practical expedient. 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. |
Current Fair Value of Debt | For the Company’s material debt arrangements, the current fair value of the Company’s debt at September 30, 2017 and December 31, 2016 was as follows: September 30, 2017 December 31, 2016 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Margin Borrowing Facility $ 76,518 $ 76,518 $ 66,646 $ 66,646 7.75% Subordinated Notes due 2045 (1) 96,588 100,448 96,497 95,697 7.875% Subordinated Notes due 2047 (2) 125,829 130,009 — — Total $ 298,935 $ 306,975 $ 163,143 $ 162,343 (1) As of September 30, 2017 and December 31, 2016, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.4 million and $3.5 million, respectively. (2) As of September 30, 2017, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $4.2 million. |
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 September 30, 2017 and December 31, 2016. September 30, 2017 December 31, 2016 (Dollars in thousands) Fair Value Future Funding Fair Value Future Funding Real Estate Fund, LP (1) $ — $ — $ — $ — European Non-Performing 29,795 14,214 32,922 15,714 Private Middle Market Loan Fund, LP (3) 26,824 11,776 33,199 9,054 Distressed Debt Fund, LP (4) 16,934 33,500 — — Total $ 73,553 $ 59,490 $ 66,121 $ 24,768 (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 (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. (4) This limited partnership invests in stressed and distressed debt instruments. 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 to be redeemed no later than 2027. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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. Quarter Ended September 30, 2017: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 50,812 $ 114,076 $ (38,834 ) $ 126,054 Net premiums written $ 50,800 $ 58,245 $ — $ 109,045 Net premiums earned $ 50,392 $ 58,227 $ — $ 108,619 Net investment income 14,631 6,584 (11,081 ) 10,134 Net realized investment losses (150 ) (813 ) — (963 ) Other income 40 2,254 — 2,294 Total revenues 64,913 66,252 (11,081 ) 120,084 Losses and Expenses: Net losses and loss adjustment expenses 31,044 51,351 — 82,395 Acquisition costs and other underwriting expenses 21,922 23,080 — 45,002 Corporate and other operating expenses 1,807 2,823 — 4,630 Interest expense 4,679 11,238 (11,081 ) 4,836 Income (loss) before income taxes $ 5,461 $ (22,240 ) $ — $ (16,779 ) Quarter Ended September 30, 2016: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 51,900 $ 123,770 $ (42,101 ) $ 133,569 Net premiums written $ 51,900 $ 63,151 $ — $ 115,051 Net premiums earned $ 54,155 $ 65,398 $ — $ 119,553 Net investment income 11,556 5,828 (8,589 ) 8,795 Net realized investment gains 58 1,870 — 1,928 Other income (loss) (10 ) 7,862 — 7,852 Total revenues 65,759 80,958 (8,589 ) 138,128 Losses and Expenses: Net losses and loss adjustment expenses 27,932 44,230 — 72,162 Acquisition costs and other underwriting expenses 24,651 23,478 — 48,129 Corporate and other operating expenses 2,906 2,100 — 5,006 Interest expense 2,081 8,741 (8,589 ) 2,233 Income before income taxes $ 8,189 $ 2,409 $ — $ 10,598 Nine Months Ended September 30, 2017: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 164,975 $ 348,331 $ (119,607 ) $ 393,699 Net premiums written $ 164,947 $ 179,401 $ — $ 344,348 Net premiums earned $ 150,384 $ 178,434 $ — $ 328,818 Net investment income 41,519 16,786 (30,687 ) 27,618 Net realized investment gains (losses) 87 (937 ) — (850 ) Other income 213 5,231 — 5,444 Total revenues 192,203 199,514 (30,687 ) 361,030 Losses and Expenses: Net losses and loss adjustment expenses 74,780 127,876 — 202,656 Acquisition costs and other underwriting expenses 65,544 69,466 — 135,010 Corporate and other operating expenses 4,137 6,908 — 11,045 Interest expense 11,653 31,099 (30,687 ) 12,065 Income (loss) before income taxes $ 36,089 $ (35,835 ) $ — $ 254 Nine Months Ended September 30, 2016: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 141,297 $ 394,312 $ (106,355 ) $ 429,254 Net premiums written $ 141,283 $ 215,950 $ — $ 357,233 Net premiums earned $ 162,594 $ 196,399 $ — $ 358,993 Net investment income 36,791 13,888 (25,576 ) 25,103 Net realized investment gains (losses) 128 (9,185 ) — (9,057 ) Other income 17 9,586 — 9,603 Total revenues 199,530 210,688 (25,576 ) 384,642 Losses and Expenses: Net losses and loss adjustment expenses 84,154 130,903 — 215,057 Acquisition costs and other underwriting expenses 71,758 77,003 — 148,761 Corporate and other operating expenses 7,181 5,883 — 13,064 Interest expense 6,233 26,020 (25,576 ) 6,677 Income (loss) before income taxes $ 30,204 $ (29,121 ) $ — $ 1,083 |
Components of Income Tax Benefit | The following table summarizes the components of income tax benefit: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2017 2016 2017 2016 Current income tax expense: Foreign $ 107 $ 84 $ 290 $ 289 U.S. Federal 128 146 128 146 Total current income tax expense 235 230 418 435 Deferred income tax expense (benefit): U.S. Federal (8,090 ) 833 (13,611 ) (10,847 ) Total deferred income tax expense (benefit) (8,090 ) 833 (13,611 ) (10,847 ) Total income tax expense (benefit) $ (7,855 ) $ 1,063 $ (13,193 ) $ (10,412 ) |
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: Quarters Ended September 30, (Dollars in thousands) 2017 2016 Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average rate $ (7,678 ) (45.8 %) $ 933 8.8 % Adjustments: Tax exempt interest (40 ) (0.2 ) (101 ) (1.0 ) Dividend exclusion (144 ) (0.9 ) (3 ) 0.0 Other 7 0.1 234 2.2 Actual tax on continuing operations $ (7,855 ) (46.8 %) $ 1,063 10.0 % Nine Months Ended September 30, (Dollars in thousands) 2017 2016 Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average rate $ (12,252 ) (4,823.6 %) $ (9,896 ) (913.8 %) Adjustments: Tax exempt interest (191 ) (75.2 ) (304 ) (28.1 ) Dividend exclusion (410 ) (161.4 ) (480 ) (44.3 ) Other (340 ) (133.9 ) 268 24.8 Actual tax on continuing operations $ (13,193 ) (5,194.1 %) $ (10,412 ) (961.4 %) |
Liability for Unpaid Losses a28
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses | Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2017 2016 2017 2016 Balance at beginning of period $ 615,763 $ 683,850 $ 651,042 $ 680,047 Less: Ceded reinsurance receivables 104,245 111,579 130,439 108,130 Net balance at beginning of period 511,518 572,271 520,603 571,917 Purchased reserves, gross 9,063 1,410 18,024 1,410 Purchased reserves ceded 63 641 573 641 Purchased reserves, net of third party reinsurance 9,126 2,051 18,597 2,051 Incurred losses and loss adjustment expenses related to: Current year 91,766 81,579 237,460 239,991 Prior years (9,371 ) (9,417 ) (34,804 ) (24,934 ) Total incurred losses and loss adjustment expenses 82,395 72,162 202,656 215,057 Paid losses and loss adjustment expenses related to: Current year 45,193 49,704 115,927 113,090 Prior years 25,190 35,147 93,273 114,302 Total paid losses and loss adjustment expenses 70,383 84,851 209,200 227,392 Net balance at end of period 532,656 561,633 532,656 561,633 Plus: Ceded reinsurance receivables 117,070 102,749 117,070 102,749 Balance at end of period $ 649,726 $ 664,382 $ 649,726 $ 664,382 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands, except share and per share data) 2017 2016 2017 2016 Net income (loss) $ (8,924 ) $ 9,535 $ 13,447 $ 11,495 Basic earnings per share: Weighted average shares outstanding – basic 17,343,292 17,254,843 17,331,840 17,241,040 Net income (loss) per share $ (0.51 ) $ 0.55 $ 0.78 $ 0.67 Diluted earnings per share: Weighted average shares outstanding – diluted (1) 17,343,292 17,540,060 17,684,519 17,515,854 Net income (loss) per share $ (0.51 ) $ 0.54 $ 0.76 $ 0 .66 (1) For the quarter ended September 30, 2017, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss for the period. |
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: Quarters Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Weighted average shares for basic earnings per share 17,343,292 17,254,843 17,331,840 17,241,040 Non-vested — 176,087 149,490 165,011 Options — 109,130 203,189 109,803 Weighted average shares for diluted earnings per share 17,343,292 17,540,060 17,684,519 17,515,854 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Summary of Business Segment Information | The following are tabulations of business segment information for the quarters and nine months ended September 30, 2017 and 2016. Quarter Ended September 30, 2017: (Dollars in thousands) Commercial Lines (1) Personal Lines (1) Reinsurance Total Revenues: Gross premiums written $ 53,113 $ 60,962 (6) $ 11,979 $ 126,054 Net premiums written $ 46,471 $ 50,607 $ 11,967 $ 109,045 Net premiums earned $ 44,778 $ 52,268 $ 11,573 $ 108,619 Other income — 2,254 40 2,294 Total revenues 44,778 54,522 11,613 110,913 Losses and Expenses: Net losses and loss adjustment expenses 19,095 42,534 20,766 82,395 Acquisition costs and other underwriting expenses 18,237 (3) 22,689 (4) 4,076 45,002 Income (loss) from segments $ 7,446 $ (10,701 ) $ (13,229 ) $ (16,484 ) Unallocated Items: Net investment income 10,134 Net realized investment loss (963 ) Corporate and other operating expenses (4,630 ) Interest expense (4,836 ) Loss before income taxes (16,779 ) Income tax benefit 7,855 Net loss (8,924 ) Total assets $ 911,412 $ 481,357 $ 737,921 (5) $ 2,130,690 (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 $127 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $262 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 ($1,427) of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. Quarter Ended September 30, 2016: (Dollars in thousands) Commercial Personal Lines (1) Reinsurance Total Revenues: Gross premiums written $ 49,505 $ 74,266 (6) $ 9,798 $ 133,569 Net premiums written $ 45,074 $ 60,179 $ 9,798 $ 115,051 Net premiums earned $ 47,774 $ 61,221 $ 10,558 $ 119,553 Other income (loss) 6,872 991 (11 ) 7,852 Total revenues 54,646 62,212 10,547 127,405 Losses and Expenses: Net losses and loss adjustment expenses 23,848 42,927 5,387 72,162 Acquisition costs and other underwriting expenses 20,048 (3) 24,411 (4) 3,670 48,129 Income (loss) from segments $ 10,750 $ (5,126 ) $ 1,490 $ 7,114 Unallocated Items: Net investment income 8,795 Net realized investment gains 1,928 Corporate and other operating expenses (5,006 ) Interest expense (2,233 ) Income before income taxes 10,598 Income tax expense (1,063 ) Net income 9,535 Total assets $ 770,255 $ 499,202 $ 712,358 (5) $ 1,981,815 (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 $130 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $306 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 $7,328 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. Nine Months Ended September 30, 2017: (Dollars in thousands) Commercial Personal Reinsurance Total Revenues: Gross premiums written $ 155,776 $ 192,551 (6) $ 45,372 $ 393,699 Net premiums written $ 137,025 $ 161,979 $ 45,344 $ 344,348 Net premiums earned $ 133,289 $ 164,102 $ 31,427 $ 328,818 Other income 78 5,153 213 5,444 Total revenues 133,367 169,255 31,640 334,262 Losses and Expenses: Net losses and loss adjustment expenses 53,688 120,410 28,558 202,656 Acquisition costs and other underwriting expenses 55,398 (3) 69,281 (4) 10,331 135,010 Income (loss) from segments $ 24,281 $ (20,436 ) $ (7,249 ) $ (3,404 ) Unallocated Items: Net investment income 27,618 Net realized investment loss (850 ) Corporate and other operating expenses (11,045 ) Interest expense (12,065 ) Income before income taxes 254 Income tax benefit 13,193 Net income 13,447 Total assets $ 911,412 $ 481,357 $ 737,921 (5) $ 2,130,690 (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 $366 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $821 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 ($185) of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. Nine Months Ended September 30, 2016: (Dollars in thousands) Commercial Personal Lines (1) Reinsurance Total Revenues: Gross premiums written $ 155,686 $ 238,627 (6) $ 34,941 $ 429,254 Net premiums written $ 140,199 $ 182,107 $ 34,927 $ 357,233 Net premiums earned $ 142,749 $ 184,581 $ 31,663 $ 358,993 Other income 6,872 2,714 17 9,603 Total revenues 149,621 187,295 31,680 368,596 Losses and Expenses: Net losses and loss adjustment expenses 78,813 122,540 13,704 215,057 Acquisition costs and other underwriting expenses 60,784 (3) 76,349 (4) 11,628 148,761 Income (loss) from segments $ 10,024 $ (11,594 ) $ 6,348 $ 4,778 Unallocated Items: Net investment income 25,103 Net realized investment losses (9,057 ) Corporate and other operating expenses (13,064 ) Interest expense (6,677 ) Income before income taxes 1,083 Income tax benefit 10,412 Net income 11,495 Total assets $ 770,255 $ 499,202 $ 712,358 (5) $ 1,981,815 (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 $386 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $923 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 $30,910 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. |
Principles of Consolidation a31
Principles of Consolidation and Basis of Presentation - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017SegmentProduct | |
Organization And Basis Of Presentation [Line Items] | |
Date of incorporation | Feb. 9, 2016 |
State of incorporation | Cayman Islands |
Kind of listing | A ordinary shares |
Number of business segments | Segment | 3 |
Commercial Lines Segment | |
Organization And Basis Of Presentation [Line Items] | |
Number of product classifications | Product | 4 |
Schedule of Amortized Cost and
Schedule of Amortized Cost and Estimated Fair Value of Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 1,553,307 | $ 1,426,975 | |
Gross Unrealized Gains | 20,843 | 9,158 | |
Gross Unrealized Losses | (6,972) | (9,424) | |
Estimated Fair Value | 1,567,178 | 1,426,709 | |
Other than temporary impairments recognized in AOCI | [1] | (1) | (4) |
Common Shares | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 124,064 | 119,515 | |
Gross Unrealized Gains | 13,148 | 3,445 | |
Gross Unrealized Losses | (3,750) | (2,403) | |
Estimated Fair Value | 133,462 | 120,557 | |
Other Invested Assets | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 73,553 | 66,121 | |
Estimated Fair Value | 73,553 | 66,121 | |
Fixed Maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 1,355,690 | 1,241,339 | |
Gross Unrealized Gains | 7,695 | 5,713 | |
Gross Unrealized Losses | (3,222) | (7,021) | |
Estimated Fair Value | 1,360,163 | 1,240,031 | |
Other than temporary impairments recognized in AOCI | [1] | (1) | (4) |
Fixed Maturities | U.S. Treasury and Agency Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 117,596 | 71,517 | |
Gross Unrealized Gains | 665 | 763 | |
Gross Unrealized Losses | (495) | (233) | |
Estimated Fair Value | 117,766 | 72,047 | |
Fixed Maturities | Obligations of States and Political Subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 116,508 | 155,402 | |
Gross Unrealized Gains | 991 | 1,423 | |
Gross Unrealized Losses | (256) | (379) | |
Estimated Fair Value | 117,243 | 156,446 | |
Fixed Maturities | Mortgage Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 146,800 | 88,131 | |
Gross Unrealized Gains | 650 | 895 | |
Gross Unrealized Losses | (562) | (558) | |
Estimated Fair Value | 146,888 | 88,468 | |
Fixed Maturities | Asset-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 209,028 | 233,890 | |
Gross Unrealized Gains | 634 | 684 | |
Gross Unrealized Losses | (142) | (583) | |
Estimated Fair Value | 209,520 | 233,991 | |
Other than temporary impairments recognized in AOCI | [1] | (1) | (4) |
Fixed Maturities | Commercial Mortgage-Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 139,740 | 184,821 | |
Gross Unrealized Gains | 94 | 118 | |
Gross Unrealized Losses | (741) | (1,747) | |
Estimated Fair Value | 139,093 | 183,192 | |
Fixed Maturities | Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 485,580 | 381,209 | |
Gross Unrealized Gains | 3,851 | 1,666 | |
Gross Unrealized Losses | (838) | (2,848) | |
Estimated Fair Value | 488,593 | 380,027 | |
Fixed Maturities | Foreign Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 140,438 | 126,369 | |
Gross Unrealized Gains | 810 | 164 | |
Gross Unrealized Losses | (188) | (673) | |
Estimated Fair Value | $ 141,060 | $ 125,860 | |
[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 ($) | Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | $ 6,972,000 | $ 9,424,000 | |
Gross unrealized losses for 12 months or greater | [1] | 512,000 | $ 891,000 |
Insurance enhanced asset-backed, commercial mortgage-backed, and credit securities | 37,900,000 | ||
Investments in insurance enhanced municipal bonds | 4,183,000 | ||
Ratings without insurance | 0 | ||
Investments in asset-backed, commercial mortgage-backed securities and taxable municipal bonds | $ 33,700,000 | ||
Asset backed and taxable municipal bonds as a percentage of total cash and invested assets | 2.10% | ||
Municipal Bond Insurance Association | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in asset-backed, commercial mortgage-backed securities and taxable municipal bonds | $ 7,000,000 | ||
Assured Guaranty Corporation | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in asset-backed, commercial mortgage-backed securities and taxable municipal bonds | $ 16,300,000 | ||
Maximum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in a single issuer as a percentage of shareholders' equity | 4.00% | 5.00% | |
Taxable Municipal Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in asset-backed, commercial mortgage-backed securities and taxable municipal bonds | $ 23,200,000 | ||
Federal Home Loan Mortgage Corporation | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in asset-backed, commercial mortgage-backed securities and taxable municipal bonds | 10,400,000 | ||
Pre-Refunded Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in insurance enhanced municipal bonds | 1,523,000 | ||
AA- Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in insurance enhanced municipal bonds | $ 4,200,000 | ||
Insurance enhanced municipal bonds as a percentage of total cash and invested assets | 0.30% | ||
Tax free insurance enhanced municipal bonds | $ 2,700,000 | ||
U.S. Treasury and Agency Obligations | AA+ Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 495,000 | ||
Gross unrealized losses for 12 months or greater | 6,000 | ||
Asset-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | $ 142,000 | ||
Weighted average credit enhancement | 22.50% | ||
Investments in asset-backed, commercial mortgage-backed securities and taxable municipal bonds | $ 100,000 | ||
Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 838,000 | ||
Corporate Bonds | A- Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses for 12 months or greater | 238,000 | ||
Foreign Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 188,000 | ||
Foreign Corporate Bonds | Investment Grade Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses for 12 months or greater | 101,000 | ||
Common Shares | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 3,750,000 | $ 2,403,000 | |
Obligations of States and Political Subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 256,000 | ||
Obligations of States and Political Subdivisions | Investment Grade Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses for 12 months or greater | 57,000 | ||
Commercial Mortgage-Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | $ 741,000 | ||
Weighted average credit enhancement | 25.60% | ||
Investments in asset-backed, commercial mortgage-backed securities and taxable municipal bonds | $ 10,400,000 | ||
Commercial Mortgage-Backed Securities | AA+ Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses for 12 months or greater | 102,000 | ||
Mortgage Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 562,000 | ||
Mortgage Backed Securities | AA+ Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses for 12 months or greater | $ 8,000 | ||
Percentage of unrealized losses for twelve months or greater | 75.90% | ||
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 | $ 29,800,000 | 32,900,000 | |
Variable interest entities, maximum exposure to loss | 44,000,000 | 48,600,000 | |
Second VIE that provides financing for middle market companies | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Significant variable interest in fair value of the non-consolidated VIE | 26,800,000 | 33,200,000 | |
Variable interest entities, maximum exposure to loss | 38,600,000 | $ 42,300,000 | |
New limited partnership that invests in distressed securities and assets and considered a VIE | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Significant variable interest in fair value of the non-consolidated VIE | 16,900,000 | ||
Variable interest entities, maximum exposure to loss | $ 50,400,000 | ||
[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 | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | $ 86,480 | |
Due in one year through five years, Amortized Cost | 493,819 | |
Due in five years through ten years, Amortized Cost | 273,515 | |
Due in ten years through fifteen years, Amortized Cost | 592 | |
Due after fifteen years, Amortized Cost | 5,716 | |
Fixed maturities, amortized cost | 1,355,690 | $ 1,241,339 |
Due in one year or less, Estimated Fair value | 86,515 | |
Due in one year through five years, Estimated Fair value | 495,425 | |
Due in five years through ten years, Estimated Fair value | 276,346 | |
Due in ten years through fifteen years, Estimated Fair value | 598 | |
Due after fifteen years, Estimated Fair value | 5,778 | |
Fixed Maturities, estimated fair value | 1,360,163 | $ 1,240,031 |
Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 146,800 | |
Estimated Fair value | 146,888 | |
Asset-backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 209,028 | |
Estimated Fair value | 209,520 | |
Commercial Mortgage-Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 139,740 | |
Estimated Fair value | $ 139,093 |
Summary of Securities with Gros
Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | $ 563,059 | $ 601,410 | |
Less than 12 months, Gross Unrealized Losses | (6,460) | (8,533) | |
12 months or longer, Fair Value | [1] | 44,186 | 103,870 |
12 months or longer, Gross Unrealized Losses | [1] | (512) | (891) |
Total, Fair Value | 607,245 | 705,280 | |
Total, Gross Unrealized Losses | (6,972) | (9,424) | |
Obligations of States and Political Subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (256) | ||
Mortgage Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (562) | ||
Asset-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (142) | ||
Commercial Mortgage-Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (741) | ||
Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (838) | ||
Foreign Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (188) | ||
Common Shares | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 29,150 | 57,439 | |
Less than 12 months, Gross Unrealized Losses | (3,750) | (2,403) | |
Total, Fair Value | 29,150 | 57,439 | |
Total, Gross Unrealized Losses | (3,750) | (2,403) | |
Fixed Maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 533,909 | 543,971 | |
Less than 12 months, Gross Unrealized Losses | (2,710) | (6,130) | |
12 months or longer, Fair Value | [1] | 44,186 | 103,870 |
12 months or longer, Gross Unrealized Losses | [1] | (512) | (891) |
Total, Fair Value | 578,095 | 647,841 | |
Total, Gross Unrealized Losses | (3,222) | (7,021) | |
Fixed Maturities | U.S. Treasury and Agency Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 96,336 | 39,570 | |
Less than 12 months, Gross Unrealized Losses | (489) | (233) | |
12 months or longer, Fair Value | [1] | 594 | |
12 months or longer, Gross Unrealized Losses | [1] | (6) | |
Total, Fair Value | 96,930 | 39,570 | |
Total, Gross Unrealized Losses | (495) | (233) | |
Fixed Maturities | Obligations of States and Political Subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 27,806 | 46,861 | |
Less than 12 months, Gross Unrealized Losses | (199) | (369) | |
12 months or longer, Fair Value | [1] | 8,629 | 670 |
12 months or longer, Gross Unrealized Losses | [1] | (57) | (10) |
Total, Fair Value | 36,435 | 47,531 | |
Total, Gross Unrealized Losses | (256) | (379) | |
Fixed Maturities | Mortgage Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 105,162 | 52,780 | |
Less than 12 months, Gross Unrealized Losses | (554) | (541) | |
12 months or longer, Fair Value | [1] | 297 | 298 |
12 months or longer, Gross Unrealized Losses | [1] | (8) | (17) |
Total, Fair Value | 105,459 | 53,078 | |
Total, Gross Unrealized Losses | (562) | (558) | |
Fixed Maturities | Asset-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 41,719 | 62,737 | |
Less than 12 months, Gross Unrealized Losses | (142) | (493) | |
12 months or longer, Fair Value | [1] | 23,937 | |
12 months or longer, Gross Unrealized Losses | [1] | (90) | |
Total, Fair Value | 41,719 | 86,674 | |
Total, Gross Unrealized Losses | (142) | (583) | |
Fixed Maturities | Commercial Mortgage-Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 97,191 | 94,366 | |
Less than 12 months, Gross Unrealized Losses | (639) | (1,090) | |
12 months or longer, Fair Value | [1] | 6,727 | 69,747 |
12 months or longer, Gross Unrealized Losses | [1] | (102) | (657) |
Total, Fair Value | 103,918 | 164,113 | |
Total, Gross Unrealized Losses | (741) | (1,747) | |
Fixed Maturities | Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 125,550 | 171,621 | |
Less than 12 months, Gross Unrealized Losses | (600) | (2,731) | |
12 months or longer, Fair Value | [1] | 17,493 | 9,218 |
12 months or longer, Gross Unrealized Losses | [1] | (238) | (117) |
Total, Fair Value | 143,043 | 180,839 | |
Total, Gross Unrealized Losses | (838) | (2,848) | |
Fixed Maturities | Foreign Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 40,145 | 76,036 | |
Less than 12 months, Gross Unrealized Losses | (87) | (673) | |
12 months or longer, Fair Value | [1] | 10,446 | |
12 months or longer, Gross Unrealized Losses | [1] | (101) | |
Total, Fair Value | 50,591 | 76,036 | |
Total, Gross Unrealized Losses | $ (188) | $ (673) | |
[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 | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
OTTI losses, gross | $ (108) | $ (31) | $ (201) | |
Portion of loss recognized in other comprehensive income (pre-tax) | $ 0 | 0 | 0 | 0 |
Net impairment losses on fixed maturities recognized in earnings | (108) | (31) | (201) | |
Equity securities | (1,020) | (2,106) | (1,677) | (4,280) |
Total | $ (1,020) | $ (2,214) | $ (1,708) | $ (4,481) |
Schedule of Credit Losses Recog
Schedule of Credit Losses Recognized in Earnings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Balance at beginning of period | $ 16 | $ 31 | $ 31 | $ 31 |
Additions where no OTTI was previously recorded | 0 | 0 | 0 | 0 |
Additions where an OTTI was previously recorded | 0 | 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 | 0 |
Reductions reflecting increases in expected cash flows to be collected | 0 | 0 | 0 | 0 |
Reductions for securities sold during the period | (3) | (18) | ||
Balance at end of period | $ 13 | $ 31 | $ 13 | $ 31 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income, Net of Tax (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||||||
Foreign currency fluctuations | $ 584 | |||||
Deferred taxes | (4,370) | $ (352) | ||||
Accumulated other comprehensive income, net of tax | 10,085 | $ 5,986 | (618) | $ 23,279 | $ 22,076 | $ 4,078 |
Fixed Maturities | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Net unrealized gains (losses) | 4,473 | (1,308) | ||||
Common Shares | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Net unrealized gains (losses) | $ 9,398 | $ 1,042 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | $ 5,986 | $ 22,076 | $ (618) | $ 4,078 | $ 4,078 |
Other comprehensive income (loss) before reclassification | 3,658 | 1,984 | 11,491 | 21,675 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 441 | (781) | (788) | (2,474) | |
Other comprehensive income (loss), net of tax | 4,099 | 1,203 | 10,703 | 19,201 | |
Ending balance | 10,085 | 23,279 | 10,085 | 23,279 | (618) |
Unrealized Gains and Losses on Available for Sale Securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | 5,549 | 22,511 | (554) | 4,200 | 4,200 |
Other comprehensive income (loss) before reclassification | 3,173 | 2,073 | 10,498 | 22,075 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 653 | (781) | (569) | (2,472) | |
Other comprehensive income (loss), net of tax | 3,826 | 1,292 | 9,929 | 19,603 | |
Ending balance | 9,375 | 23,803 | 9,375 | 23,803 | (554) |
Foreign Currency Items | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | 437 | (435) | (64) | (122) | (122) |
Other comprehensive income (loss) before reclassification | 485 | (89) | 993 | (400) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (212) | (219) | (2) | ||
Other comprehensive income (loss), net of tax | 273 | (89) | 774 | (402) | |
Ending balance | $ 710 | $ (524) | $ 710 | $ (524) | $ (64) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications, net of tax | $ 441 | $ (781) | $ (788) | $ (2,474) |
Other net realized investment gains | 57 | 4,142 | 858 | (4,576) |
Other than temporary impairment losses on investments | (1,020) | (2,214) | (1,708) | (4,481) |
Income (loss) before income taxes | (16,779) | 10,598 | 254 | 1,083 |
Income tax expense | 7,855 | (1,063) | 13,193 | 10,412 |
Net income (loss) | (8,924) | 9,535 | 13,447 | 11,495 |
Unrealized Gains and Losses on Available for Sale Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications, net of tax | 653 | (781) | (569) | (2,472) |
Foreign Currency Items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications, net of tax | (212) | (219) | (2) | |
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 | (97) | (3,384) | (2,538) | (8,214) |
Other than temporary impairment losses on investments | 1,020 | 2,214 | 1,708 | 4,481 |
Income (loss) before income taxes | 923 | (1,170) | (830) | (3,733) |
Income tax expense | (270) | 389 | 261 | 1,261 |
Net income (loss) | 653 | $ (781) | (569) | (2,472) |
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 | (326) | (336) | (4) | |
Income tax expense | 114 | 117 | 2 | |
Net income (loss) | $ (212) | $ (219) | $ (2) |
Components of Net Realized Inve
Components of Net Realized Investment Gains (Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Schedule of Available-for-sale Securities [Line Items] | |||||
Total net realized investment gains (losses) | $ (963) | $ 1,928 | $ (850) | $ (9,057) | |
Not Designated as Hedging Instrument | Interest Rate Swap | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Gross realized gains | 486 | 1,955 | 822 | ||
Gross realized losses | (852) | (1,197) | (2,838) | (12,794) | |
Total net realized investment gains (losses) | [1] | (366) | 758 | (2,016) | (12,794) |
Fixed Maturities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Gross realized gains | 434 | 434 | 3,122 | 1,252 | |
Gross realized losses | (300) | (147) | (2,358) | (291) | |
Total net realized investment gains (losses) | 134 | 287 | 764 | 961 | |
Common Shares | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Gross realized gains | 917 | 3,345 | 2,711 | 8,068 | |
Gross realized losses | (1,648) | (2,462) | (2,309) | (5,292) | |
Total net realized investment gains (losses) | $ (731) | $ 883 | $ 402 | $ 2,776 | |
[1] | Includes periodic net interest settlements related to the derivatives of $0.9 million and $1.2 million for the quarters ended September 30, 2017 and 2016, respectively, and $2.8 million and $3.7 million for the nine months ended September 30, 2017 and 2016, respectively. |
Components of Net Realized In42
Components of Net Realized Investment Gains (Losses) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest Rate Swap | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Net interest settlements | $ 0.9 | $ 1.2 | $ 2.8 | $ 3.7 |
Schedule of Proceeds From Sales
Schedule of Proceeds From Sales and Redemptions of Available for Sale Securities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturities | $ 742,229 | $ 279,659 |
Equity securities | $ 24,483 | $ 34,976 |
Schedule of Investment Income (
Schedule of Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Schedule of Available-for-sale Securities [Line Items] | |||||
Investment income | $ 10,807 | $ 9,782 | $ 29,816 | $ 29,293 | |
Investment expense | [1] | (673) | (987) | (2,198) | (4,190) |
Net investment income | 10,134 | 8,795 | 27,618 | 25,103 | |
Fixed Maturities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Investment income | 9,020 | 8,131 | 24,032 | 22,729 | |
Equity Securities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Investment income | 906 | 698 | 2,740 | 2,647 | |
Cash and Cash Equivalents | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Investment income | 226 | 44 | 621 | 111 | |
Other Invested Assets | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Investment income | $ 655 | $ 909 | $ 2,423 | $ 3,806 | |
[1] | Investment expense for the nine months ended September 30, 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 $40 million commitment related to this investment. |
Schedule of Investment Income45
Schedule of Investment Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Investment expense | [1] | $ 673 | $ 987 | $ 2,198 | $ 4,190 | ||
Commitment to purchase alternative investment | $ 50,000 | $ 50,000 | $ 40,000 | $ 50,000 | |||
Upfront Fees | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Investment expense | $ 1,500 | ||||||
[1] | Investment expense for the nine months ended September 30, 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 $40 million commitment related to this investment. |
Schedule of Total Investment Re
Schedule of Total Investment Return (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Net Investment Income [Line Items] | |||||
Net investment income | $ 10,134 | $ 8,795 | $ 27,618 | $ 25,103 | |
Net realized investment gains (losses) | (963) | 1,928 | (850) | (9,057) | |
Change in unrealized holding gains and losses | 5,631 | 2,061 | 14,721 | 25,398 | |
Net realized and unrealized investment returns | 4,668 | 3,989 | 13,871 | 16,341 | |
Total investment return | $ 14,802 | $ 12,784 | $ 41,489 | $ 41,444 | |
Total investment return % | [1] | 0.90% | 0.80% | 2.60% | 2.70% |
Average investment portfolio | $ 1,629,989 | $ 1,530,599 | $ 1,587,645 | $ 1,522,247 | |
[1] | Not annualized. |
Summary of Insurance Enhanced M
Summary of Insurance Enhanced Municipal Bonds Backed by Financial Guarantors (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | $ 4,183 |
Ambac Financial Group | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 1,029 |
Municipal Bond Insurance Association | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 1,191 |
Gov't National Housing Association | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 440 |
Financial Guarantors | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 2,660 |
Other Credit Enhanced Municipal Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 1,523 |
Pre-Refunded Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 1,523 |
Pre-Refunded Securities | Other Credit Enhanced Municipal Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 1,523 |
Government Guaranteed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 440 |
Government Guaranteed Securities | Gov't National Housing Association | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 440 |
Government Guaranteed Securities | Financial Guarantors | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 440 |
Exposure Net Of Pre-refunded & Government Guaranteed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 2,220 |
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 | 1,029 |
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 | 1,191 |
Exposure Net Of Pre-refunded & Government Guaranteed Securities | Financial Guarantors | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | $ 2,220 |
Summary of Estimated Fair Value
Summary of Estimated Fair Values of Bonds Held on Deposit (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | $ 542,517 | $ 559,069 | |
On Deposit With Governmental Authorities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | 28,489 | 29,079 | |
Intercompany Trusts Held For Benefit Of U.S. Policyholders | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | 335,444 | 351,002 | |
Held In Trust Pursuant To Third Party Requirements | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | 80,820 | 88,178 | |
Letter Of Credit Held For Third Party Requirements | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | 4,028 | 4,871 | |
Securities held as collateral for borrowing arrangements | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | [1] | $ 93,736 | $ 85,939 |
[1] | Amount required to collateralize margin borrowing facility. |
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 | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 200,000 | $ 200,000 |
Fair Value | $ (10,702) | $ (11,524) |
Summary of Net Gain (Loss) Incl
Summary of Net Gain (Loss) Included in Consolidated Statements of Operations for Changes in Fair Value of Derivatives and Periodic Net Interest Settlements Under Derivatives (Detail) - Interest Rate Swap - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net loss for changes in fair value and net settlements of derivatives | $ 900 | $ 1,200 | $ 2,800 | $ 3,700 |
Net Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net loss for changes in fair value and net settlements of derivatives | $ (366) | $ 758 | $ (2,016) | $ (12,794) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - Other Assets - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Funds needed to post execute swap transaction | $ 3.3 | $ 5.3 |
Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Margin calls made in connection with interest rate swaps | $ 14.2 | $ 12.6 |
Company's Invested Assets and D
Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | $ 1,567,178 | $ 1,426,709 | ||
Common Shares | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 133,462 | 120,557 | ||
Fixed Maturities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 1,360,163 | 1,240,031 | ||
Fixed Maturities | U.S. Treasury and Agency Obligations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 117,766 | 72,047 | ||
Fixed Maturities | Obligations of States and Political Subdivisions | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 117,243 | 156,446 | ||
Fixed Maturities | Mortgage Backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 146,888 | 88,468 | ||
Fixed Maturities | Commercial Mortgage-Backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 139,093 | 183,192 | ||
Fixed Maturities | Asset-backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 209,520 | 233,991 | ||
Fixed Maturities | Corporate Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 488,593 | 380,027 | ||
Fixed Maturities | Foreign Corporate Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 141,060 | 125,860 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 1,493,625 | [1] | 1,360,588 | [2] |
Total invested liabilities | 10,702 | 11,524 | ||
Fair Value, Measurements, Recurring | Derivative instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested liabilities | 10,702 | 11,524 | ||
Fair Value, Measurements, Recurring | Common Shares | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 133,462 | 120,557 | ||
Fair Value, Measurements, Recurring | Fixed Maturities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 1,360,163 | 1,240,031 | ||
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 | 117,766 | 72,047 | ||
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 | 117,243 | 156,446 | ||
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 | 146,888 | 88,468 | ||
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 | 139,093 | 183,192 | ||
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 | 209,520 | 233,991 | ||
Fair Value, Measurements, Recurring | Fixed Maturities | Corporate Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 488,593 | 380,027 | ||
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 | 141,060 | 125,860 | ||
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 | 251,228 | [1] | 192,604 | [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 | 133,462 | 120,557 | ||
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 | 117,766 | 72,047 | ||
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 | 117,766 | 72,047 | ||
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 | 1,242,397 | [1] | 1,167,984 | [2] |
Total invested liabilities | 10,702 | 11,524 | ||
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 | 10,702 | 11,524 | ||
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 | 1,242,397 | 1,167,984 | ||
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 | 117,243 | 156,446 | ||
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 | 146,888 | 88,468 | ||
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 | 139,093 | 183,192 | ||
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 | 209,520 | 233,991 | ||
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 | 488,593 | 380,027 | ||
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 | $ 141,060 | $ 125,860 | ||
[1] | Excluded from the table above are limited partnerships of $73.6 million at September 30, 2017 whose fair value is based on net asset value as a practical expedient. | |||
[2] | Excluded from the table above are limited partnerships of $66.1 million at December 31, 2016 whose fair value is based on net asset value as a practical expedient. |
Company's Invested Assets and53
Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investment in limited partnership | $ 73,553 | $ 66,121 |
Current Fair Value of Debt (Det
Current Fair Value of Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | $ 298,935 | $ 163,143 | |
Debt, fair value | 306,975 | 162,343 | |
7.75% Subordinated Notes due 2045 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | [1] | 96,588 | 96,497 |
Debt, fair value | [1] | 100,448 | 95,697 |
7.875% Subordinated Notes due 2047 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | [2] | 125,829 | |
Debt, fair value | [2] | 130,009 | |
Margin borrowing facilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 76,518 | 66,646 | |
Debt, fair value | $ 76,518 | $ 66,646 | |
[1] | As of September 30, 2017 and December 31, 2016, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.4 million and $3.5 million, respectively. | ||
[2] | As of September 30, 2017, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $4.2 million. |
Current Fair Value of Debt (Par
Current Fair Value of Debt (Parenthetical) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
7.75% Subordinated Notes due 2045 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Subordinated Notes percentage | 7.75% | 7.75% |
Subordinated Notes due date | 2,045 | 2,045 |
Unamortized Debt Issuance Costs | $ 3.4 | $ 3.5 |
7.875% Subordinated Notes due 2047 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Subordinated Notes percentage | 7.875% | |
Subordinated Notes due date | 2,047 | |
Unamortized Debt Issuance Costs | $ 4.2 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity in the earnings of liability companies or partnerships | $ 2,423 | $ 3,749 | |||
Equity Method Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity in the earnings of liability companies or partnerships | $ 700 | $ 900 | $ 2,400 | $ 3,700 | |
7.75% Subordinated Notes due 2045 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Subordinated Notes due date | 2,045 | 2,045 | |||
7.875% Subordinated Notes due 2047 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Subordinated Notes due date | 2,047 | ||||
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 due date | 2,045 | ||||
Fair Value, Inputs, Level 1 | 7.875% Subordinated Notes due 2047 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Subordinated Notes due date | 2,047 |
Fair Value and Future Funding C
Fair Value and Future Funding Commitments Related to These Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 73,553 | $ 66,121 | |
Future Funding Commitments | 59,490 | 24,768 | |
Fair Value, Inputs, Level 3 | European Non-Performing Loan Fund, LP | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [1] | 29,795 | 32,922 |
Future Funding Commitments | [1] | 14,214 | 15,714 |
Fair Value, Inputs, Level 3 | Private Middle Market Loans, LLC | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [2] | 26,824 | 33,199 |
Future Funding Commitments | [2] | 11,776 | $ 9,054 |
Fair Value, Inputs, Level 3 | Distressed Debt Fund, LP | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [3] | 16,934 | |
Future Funding Commitments | [3] | $ 33,500 | |
[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. | ||
[3] | This limited partnership invests in stressed and distressed debt instruments. 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 to be redeemed no later than 2027. |
Fair Value and Future Funding58
Fair Value and Future Funding Commitments Related to These Investments (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value written down | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Income Tax [Line Items] | |||||
Effective income tax benefit rate | (46.80%) | 10.00% | (5194.10%) | (961.40%) | |
Alternative minimum tax credit carry forward | $ 11 | $ 11 | $ 11 | ||
Net operating loss carryforwards | 21.8 | 21.8 | 3.2 | ||
Section 163(j) carryforward | $ 6 | $ 6 | $ 8.1 | ||
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 | 27.08% | ||||
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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | ||||
Gross premiums written | $ 126,054 | $ 133,569 | $ 393,699 | $ 429,254 |
Net premiums written | 109,045 | 115,051 | 344,348 | 357,233 |
Net premiums earned | 108,619 | 119,553 | 328,818 | 358,993 |
Net investment income | 10,134 | 8,795 | 27,618 | 25,103 |
Net realized investment gains (losses) | (963) | 1,928 | (850) | (9,057) |
Other income (loss) | 2,294 | 7,852 | 5,444 | 9,603 |
Total revenues | 120,084 | 138,128 | 361,030 | 384,642 |
Losses and Expenses: | ||||
Net losses and loss adjustment expenses | 82,395 | 72,162 | 202,656 | 215,057 |
Acquisition costs and other underwriting expenses | 45,002 | 48,129 | 135,010 | 148,761 |
Corporate and other operating expenses | 4,630 | 5,006 | 11,045 | 13,064 |
Interest expense | 4,836 | 2,233 | 12,065 | 6,677 |
Income (loss) before income taxes | (16,779) | 10,598 | 254 | 1,083 |
Non-U.S. Subsidiaries | ||||
Revenues: | ||||
Gross premiums written | 50,812 | 51,900 | 164,975 | 141,297 |
Net premiums written | 50,800 | 51,900 | 164,947 | 141,283 |
Net premiums earned | 50,392 | 54,155 | 150,384 | 162,594 |
Net investment income | 14,631 | 11,556 | 41,519 | 36,791 |
Net realized investment gains (losses) | (150) | 58 | 87 | 128 |
Other income (loss) | 40 | (10) | 213 | 17 |
Total revenues | 64,913 | 65,759 | 192,203 | 199,530 |
Losses and Expenses: | ||||
Net losses and loss adjustment expenses | 31,044 | 27,932 | 74,780 | 84,154 |
Acquisition costs and other underwriting expenses | 21,922 | 24,651 | 65,544 | 71,758 |
Corporate and other operating expenses | 1,807 | 2,906 | 4,137 | 7,181 |
Interest expense | 4,679 | 2,081 | 11,653 | 6,233 |
Income (loss) before income taxes | 5,461 | 8,189 | 36,089 | 30,204 |
U.S. Subsidiaries | ||||
Revenues: | ||||
Gross premiums written | 114,076 | 123,770 | 348,331 | 394,312 |
Net premiums written | 58,245 | 63,151 | 179,401 | 215,950 |
Net premiums earned | 58,227 | 65,398 | 178,434 | 196,399 |
Net investment income | 6,584 | 5,828 | 16,786 | 13,888 |
Net realized investment gains (losses) | (813) | 1,870 | (937) | (9,185) |
Other income (loss) | 2,254 | 7,862 | 5,231 | 9,586 |
Total revenues | 66,252 | 80,958 | 199,514 | 210,688 |
Losses and Expenses: | ||||
Net losses and loss adjustment expenses | 51,351 | 44,230 | 127,876 | 130,903 |
Acquisition costs and other underwriting expenses | 23,080 | 23,478 | 69,466 | 77,003 |
Corporate and other operating expenses | 2,823 | 2,100 | 6,908 | 5,883 |
Interest expense | 11,238 | 8,741 | 31,099 | 26,020 |
Income (loss) before income taxes | (22,240) | 2,409 | (35,835) | (29,121) |
Eliminations | ||||
Revenues: | ||||
Gross premiums written | (38,834) | (42,101) | (119,607) | (106,355) |
Net investment income | (11,081) | (8,589) | (30,687) | (25,576) |
Total revenues | (11,081) | (8,589) | (30,687) | (25,576) |
Losses and Expenses: | ||||
Interest expense | $ (11,081) | $ (8,589) | $ (30,687) | $ (25,576) |
Components of Income Tax Benefi
Components of Income Tax Benefit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Current income tax expense: | ||||
Foreign | $ 107 | $ 84 | $ 290 | $ 289 |
U.S. Federal | 128 | 146 | 128 | 146 |
Total current income tax expense | 235 | 230 | 418 | 435 |
Deferred income tax expense (benefit): | ||||
U.S. Federal | (8,090) | 833 | (13,611) | (10,847) |
Total deferred income tax expense (benefit) | (8,090) | 833 | (13,611) | (10,847) |
Actual tax on continuing operations | $ (7,855) | $ 1,063 | $ (13,193) | $ (10,412) |
Differences in Tax Provision fo
Differences in Tax Provision for Financial Statement Purposes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax [Line Items] | ||||
Expected tax provision at weighted average rate | $ (7,678) | $ 933 | $ (12,252) | $ (9,896) |
Adjustments: | ||||
Tax exempt interest | (40) | (101) | (191) | (304) |
Dividend exclusion | (144) | (3) | (410) | (480) |
Other | 7 | 234 | (340) | 268 |
Actual tax on continuing operations | $ (7,855) | $ 1,063 | $ (13,193) | $ (10,412) |
Expected tax provision at weighted average rate | (45.80%) | 8.80% | (4823.60%) | (913.80%) |
Adjustments: | ||||
Tax exempt interest, % of Pre-Tax Income | (0.20%) | (1.00%) | (75.20%) | (28.10%) |
Dividend exclusion, % of Pre-Tax Income | (0.90%) | (0.00%) | (161.40%) | (44.30%) |
Other, % of Pre-Tax Income | 0.10% | 2.20% | (133.90%) | 24.80% |
Actual tax on continuing operations, % of Pre-Tax Income | (46.80%) | 10.00% | (5194.10%) | (961.40%) |
Summarized Activity in Liabilit
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Balance at beginning of period | $ 615,763 | $ 683,850 | $ 651,042 | $ 680,047 |
Less: Ceded reinsurance receivables | 104,245 | 111,579 | 130,439 | 108,130 |
Net balance at beginning of period | 511,518 | 572,271 | 520,603 | 571,917 |
Purchased reserves, gross | 9,063 | 1,410 | 18,024 | 1,410 |
Purchased reserves ceded | 63 | 641 | 573 | 641 |
Purchased reserves, net of third party reinsurance | 9,126 | 2,051 | 18,597 | 2,051 |
Incurred losses and loss adjustment expenses related to: | ||||
Current year | 91,766 | 81,579 | 237,460 | 239,991 |
Prior years | (9,371) | (9,417) | (34,804) | (24,934) |
Total incurred losses and loss adjustment expenses | 82,395 | 72,162 | 202,656 | 215,057 |
Paid losses and loss adjustment expenses related to: | ||||
Current year | 45,193 | 49,704 | 115,927 | 113,090 |
Prior years | 25,190 | 35,147 | 93,273 | 114,302 |
Total paid losses and loss adjustment expenses | 70,383 | 84,851 | 209,200 | 227,392 |
Net balance at end of period | 532,656 | 561,633 | 532,656 | 561,633 |
Plus: Ceded reinsurance receivables | 117,070 | 102,749 | 117,070 | 102,749 |
Balance at end of period | $ 649,726 | $ 664,382 | $ 649,726 | $ 664,382 |
Liability for Unpaid Losses a64
Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (9,371) | $ (9,417) | $ (34,804) | $ (24,934) |
Commercial Lines Segment | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (7,300) | (6,500) | (26,200) | (18,800) |
Commercial Lines Segment | General Liability | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (6,900) | (9,000) | (17,100) | (21,100) |
Commercial Lines Segment | General Liability | Accident years 2005 through 2009 [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,000) | |||
Commercial Lines Segment | General Liability | Accident years 2008 through 2016 | ||||
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 2005 through 2015 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (3,200) | (4,800) | ||
Commercial Lines Segment | General Liability | Accident years 2004 through 2012 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (6,000) | (16,300) | ||
Commercial Lines Segment | General Liability | Accident years 2005 through 2010 and 2012 through 2016 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (6,000) | |||
Commercial Lines Segment | General Liability | Accident years 2005 through 2014 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (11,100) | |||
Commercial Lines Segment | Property Lines | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (5,400) | |||
Commercial Lines Segment | Property Lines | Accident years 2011 through 2015 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 2,100 | (3,200) | ||
Commercial Lines Segment | Property Lines | Accident years 2012 through 2015 | ||||
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 2012 through 2015 | 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 2012 through 2015 | Catastrophe | ||||
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 2011 Through 2016 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (2,200) | |||
Commercial Lines Segment | Professional Liability | Accident years 2006 through 2008 and 2011 through 2012 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (3,700) | |||
Commercial Lines Segment | Professional Liability | Accident Years 2010 through 2012 and 2013 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (200) | |||
Personal Lines Segment | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (4,500) | |||
Personal Lines Segment | Accident Years 2015 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,300) | |||
Personal Lines Segment | General Liability | Accident Year 2015 and 2016 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (600) | |||
Personal Lines Segment | Property Lines | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (3,900) | |||
Personal Lines Segment | Property Lines | Accident year 2015 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,300) | |||
Reinsurance Operations | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (800) | (2,900) | (4,100) | (6,100) |
Reinsurance Operations | Property Lines | Accident Years 2015 And 2016 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (800) | |||
Reinsurance Operations | Property Lines | Accident Years 2014 and 2015 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (2,900) | |||
Reinsurance Operations | Property Lines | Accident Years 2013 Through 2015 And 2016 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (4,100) | |||
Reinsurance Operations | Property Lines | Accident Years 2013 through 2015 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (6,100) |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 23, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||||
Interest expense, including amortization of deferred issuance cost | $ 4,836 | $ 2,233 | $ 12,065 | $ 6,677 | |||
7.875% Subordinated Notes due 2047 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 120,000 | $ 130,000 | $ 130,000 | ||||
Number of days granted to underwriters option to purchase | 30 days | ||||||
Additional aggregate principal amount purchased pursuant to over-allotment option granted to the underwriters | $ 18,000 | ||||||
Subordinated Notes percentage | 7.875% | 7.875% | |||||
Debt instrument, interest rate terms | Payable quarterly in arrears on January 15, April 15, July 15, and October 15 of each year | ||||||
Debt instrument, maturity date | Apr. 15, 2047 | ||||||
Debt instrument, redemption description | The Company has the right to redeem the 2047 Notes in $25 increments, in whole or in part, on and after April 15, 2022, or on any interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the 2047 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% | ||||||
Deferred issuance costs | $ 4,200 | $ 4,200 | |||||
Interest expense, including amortization of deferred issuance cost | 2,600 | 5,400 | |||||
7.875% Subordinated Notes due 2047 | Over-Allotment Option | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 10,000 | ||||||
7.75% Subordinated Notes due 2045 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 100,000 | $ 100,000 | |||||
Subordinated Notes percentage | 7.75% | 7.75% | 7.75% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Ordinary Shares A | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased | 0 | 0 | 29,551 | 28,099 |
Average price paid per share | $ 39.24 | $ 28.64 | ||
Ordinary Shares B | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased | 0 | 0 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fox Paine and Company | |||||
Related Party Transaction [Line Items] | |||||
Company's total outstanding voting power | 84.00% | 84.00% | |||
Minimum voting power required to nominate Directors | 25.00% | 25.00% | |||
Management fees | $ 0.6 | $ 0.5 | $ 1.6 | $ 1.5 | |
Unpaid management fees | $ 6.3 | $ 6.3 | $ 4.6 | ||
Crystal & Company | |||||
Related Party Transaction [Line Items] | |||||
Brokerage fee incurred | $ 0.1 | $ 0.2 |
Commitments And Contingencies -
Commitments And Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2014 |
Commitments and Contingencies [Line Items] | |||
Commitment to purchase alternative investment | $ 50,000 | $ 40,000 | $ 50,000 |
Future Funding Commitments | 59,490 | $ 24,768 | |
Distressed Debt Fund, LP | |||
Commitments and Contingencies [Line Items] | |||
Funded commitment amount | 16,500 | ||
European Non-Performing Loan Fund, LP | |||
Commitments and Contingencies [Line Items] | |||
Funded commitment amount | 35,800 | ||
Private Middle Market Loans, LLC | |||
Commitments and Contingencies [Line Items] | |||
Funded commitment amount | 28,200 | ||
Unfunded Commitments | Distressed Debt Fund, LP | |||
Commitments and Contingencies [Line Items] | |||
Future Funding Commitments | 33,500 | ||
Unfunded Commitments | European Non-Performing Loan Fund, LP | |||
Commitments and Contingencies [Line Items] | |||
Future Funding Commitments | 14,200 | ||
Unfunded Commitments | Private Middle Market Loans, LLC | |||
Commitments and Contingencies [Line Items] | |||
Future Funding Commitments | $ 11,800 |
Share-Based Compensation Plans
Share-Based Compensation Plans - Additional Information (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options awarded | 0 | 0 | 0 | 0 |
Unvested stock options forfeited | 0 | 0 | 0 | 200,000 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 0 | 0 | 22,503 | 121,346 |
Weighted average fair value per share | $ 38.21 | $ 28.97 | ||
Restricted Stock | Key Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 96,585 | |||
Restricted Stock | Key Employees | Share-based Compensation Award, Tranche One | ||||
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% | ||
Vesting date | Jan. 1, 2018 | Jan. 1, 2017 | ||
Restricted Stock | Key Employees | Share-based Compensation Award, Tranche Two | ||||
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% | ||
Vesting date | Jan. 1, 2019 | Jan. 1, 2018 | ||
Restricted Stock | Key Employees | Share-based Compensation Award, Tranche Three | ||||
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% | ||
Vesting date | Jan. 1, 2020 | Jan. 1, 2019 | ||
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% | ||
Vesting date | Mar. 15, 2020 | Mar. 15, 2019 | ||
Percentage of stock award subject to vesting | 50.00% | 50.00% | ||
Restricted Stock | Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 11,199 | |||
Vesting period | 3 years | |||
Restricted Stock | Chief Executive Officer | Each subsequent anniversary date | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares vested on each anniversary of the grant date | 33.33% | |||
Restricted Stock | Another Key Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 5,309 | |||
Vesting date | Feb. 7, 2019 | |||
Restricted Stock | Another Key Employees | Vest on February 7, 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares vested on each anniversary of the grant date | 100.00% | |||
Restricted Stock | Other Key Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 8,253 | |||
Restricted Stock | Other Key Employees | Share-based Compensation Award, Tranche One | ||||
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 | Share-based Compensation Award, Tranche Two | ||||
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 | Share-based Compensation Award, Tranche Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares vested on each anniversary of the grant date | 34.00% | |||
Restricted Stock | Non Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 6,245 | 8,802 | 19,713 | 28,416 |
Weighted average fair value per share | $ 42.40 | $ 29.70 | $ 39.82 | $ 29.40 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||
Net income (loss) | $ (8,924) | $ 9,535 | $ 13,447 | $ 11,495 | |
Weighted average shares outstanding - basic | 17,343,292 | 17,254,843 | 17,331,840 | 17,241,040 | |
Net income (loss) per share | [1] | $ (0.51) | $ 0.55 | $ 0.78 | $ 0.67 |
Weighted average shares outstanding - diluted | [2] | 17,343,292 | 17,540,060 | 17,684,519 | 17,515,854 |
Net income (loss) per share | [1] | $ (0.51) | $ 0.54 | $ 0.76 | $ 0.66 |
[1] | For the quarter ended September 30, 2017, "diluted" loss per share is the same as "basic" loss per share since there was a net loss for the period. | ||||
[2] | For the quarter ended September 30, 2017, "weighted average shares outstanding - basic" was used to calculate "diluted earnings per share" due to a net loss for the period. |
Reconciliation of Weighted Aver
Reconciliation of Weighted Average Shares for Basic and Diluted Earnings Per Share (Detail) - shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | |||||
Weighted average shares for basic earnings per share | 17,343,292 | 17,254,843 | 17,331,840 | 17,241,040 | |
Weighted average shares for diluted earnings per share | [1] | 17,343,292 | 17,540,060 | 17,684,519 | 17,515,854 |
Restricted Stock | |||||
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | |||||
Non-vested restricted stock and options | 176,087 | 149,490 | 165,011 | ||
Stock Options | |||||
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | |||||
Non-vested restricted stock and options | 109,130 | 203,189 | 109,803 | ||
[1] | For the quarter ended September 30, 2017, "weighted average shares outstanding - basic" was used to calculate "diluted earnings per share" due to a net loss for the period. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Line Items] | ||||
Weighted average shares for diluted earnings per share | 17,721,954 | |||
Shares excluded from calculation of diluted earnings per share | 0 | 300,000 | 0 | 300,000 |
Restricted Stock Diluted | ||||
Earnings Per Share [Line Items] | ||||
Non-vested restricted stock and options | 164,693 | |||
Stock Options Diluted | ||||
Earnings Per Share [Line Items] | ||||
Non-vested restricted stock and options | 213,969 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable business segments managed | 3 |
Summary of Business Segment Inf
Summary of Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||||||
Revenues: | ||||||||||
Gross premiums written | $ 126,054 | $ 133,569 | $ 393,699 | $ 429,254 | ||||||
Net premiums written | 109,045 | 115,051 | 344,348 | 357,233 | ||||||
Net premiums earned | 108,619 | 119,553 | 328,818 | 358,993 | ||||||
Other income | 2,294 | 7,852 | 5,444 | 9,603 | ||||||
Total revenues | 110,913 | 127,405 | 334,262 | 368,596 | ||||||
Losses and Expenses: | ||||||||||
Net losses and loss adjustment expenses | 82,395 | 72,162 | 202,656 | 215,057 | ||||||
Acquisition costs and other underwriting expenses | 45,002 | 48,129 | 135,010 | 148,761 | ||||||
Income (loss) from segments | (16,484) | 7,114 | (3,404) | 4,778 | ||||||
Unallocated Items: | ||||||||||
Net investment income | 10,134 | 8,795 | 27,618 | 25,103 | ||||||
Net realized investment gains | (963) | 1,928 | (850) | (9,057) | ||||||
Corporate and other operating expenses | (4,630) | (5,006) | (11,045) | (13,064) | ||||||
Interest expense | (4,836) | (2,233) | (12,065) | (6,677) | ||||||
Income (loss) before income taxes | (16,779) | 10,598 | 254 | 1,083 | ||||||
Income tax benefit | 7,855 | (1,063) | 13,193 | 10,412 | ||||||
Net income | (8,924) | 9,535 | 13,447 | 11,495 | ||||||
Total assets | 2,130,690 | 1,981,815 | 2,130,690 | 1,981,815 | $ 1,972,946 | |||||
Commercial Lines Segment | ||||||||||
Revenues: | ||||||||||
Gross premiums written | [2] | 53,113 | [1] | 49,505 | 155,776 | 155,686 | ||||
Net premiums written | [2] | 46,471 | [1] | 45,074 | 137,025 | 140,199 | ||||
Net premiums earned | [2] | 44,778 | [1] | 47,774 | 133,289 | 142,749 | ||||
Other income | [2] | 6,872 | 78 | 6,872 | ||||||
Total revenues | [2] | 44,778 | [1] | 54,646 | 133,367 | 149,621 | ||||
Losses and Expenses: | ||||||||||
Net losses and loss adjustment expenses | [2] | 19,095 | [1] | 23,848 | 53,688 | 78,813 | ||||
Acquisition costs and other underwriting expenses | [2] | 18,237 | [1],[3] | 20,048 | [4] | 55,398 | [5] | 60,784 | [6] | |
Income (loss) from segments | [2] | 7,446 | [1] | 10,750 | 24,281 | 10,024 | ||||
Unallocated Items: | ||||||||||
Total assets | [2] | 911,412 | [1] | 770,255 | 911,412 | [1] | 770,255 | |||
Personal Lines Segment | ||||||||||
Revenues: | ||||||||||
Gross premiums written | [2] | 60,962 | [1],[7] | 74,266 | [8] | 192,551 | [9] | 238,627 | [10] | |
Net premiums written | [2] | 50,607 | [1] | 60,179 | 161,979 | 182,107 | ||||
Net premiums earned | [2] | 52,268 | [1] | 61,221 | 164,102 | 184,581 | ||||
Other income | [2] | 2,254 | [1] | 991 | 5,153 | 2,714 | ||||
Total revenues | [2] | 54,522 | [1] | 62,212 | 169,255 | 187,295 | ||||
Losses and Expenses: | ||||||||||
Net losses and loss adjustment expenses | [2] | 42,534 | [1] | 42,927 | 120,410 | 122,540 | ||||
Acquisition costs and other underwriting expenses | [2] | 22,689 | [1],[11] | 24,411 | [12] | 69,281 | [13] | 76,349 | [14] | |
Income (loss) from segments | [2] | (10,701) | [1] | (5,126) | (20,436) | (11,594) | ||||
Unallocated Items: | ||||||||||
Total assets | [2] | 481,357 | [1] | 499,202 | 481,357 | [1] | 499,202 | |||
Reinsurance Operations | ||||||||||
Revenues: | ||||||||||
Gross premiums written | 11,979 | 9,798 | [1] | 45,372 | [1] | 34,941 | [1] | |||
Net premiums written | 11,967 | 9,798 | [1] | 45,344 | [1] | 34,927 | [1] | |||
Net premiums earned | 11,573 | 10,558 | [1] | 31,427 | [1] | 31,663 | [1] | |||
Other income | 40 | (11) | [1] | 213 | [1] | 17 | [1] | |||
Total revenues | 11,613 | 10,547 | [1] | 31,640 | [1] | 31,680 | [1] | |||
Losses and Expenses: | ||||||||||
Net losses and loss adjustment expenses | 20,766 | 5,387 | [1] | 28,558 | [1] | 13,704 | [1] | |||
Acquisition costs and other underwriting expenses | 4,076 | 3,670 | [1] | 10,331 | [1] | 11,628 | [1] | |||
Income (loss) from segments | (13,229) | 1,490 | [1] | (7,249) | [1] | 6,348 | [1] | |||
Unallocated Items: | ||||||||||
Total assets | [1],[15] | $ 737,921 | $ 712,358 | $ 737,921 | $ 712,358 | |||||
[1] | External business only, excluding business assumed from affiliates. | |||||||||
[2] | Includes business ceded to the Company's Reinsurance Operations. | |||||||||
[3] | Includes federal excise tax of $127 relating to cessions from Commercial Lines to Reinsurance Operations. | |||||||||
[4] | Includes federal excise tax of $130 relating to cessions from Commercial Lines to Reinsurance Operations. | |||||||||
[5] | Includes federal excise tax of $366 relating to cessions from Commercial Lines to Reinsurance Operations. | |||||||||
[6] | Includes federal excise tax of $386 relating to cessions from Commercial Lines to Reinsurance Operations. | |||||||||
[7] | Includes ($1,427) of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. | |||||||||
[8] | Includes $7,328 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. | |||||||||
[9] | Includes ($185) of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. | |||||||||
[10] | Includes $30,910 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. | |||||||||
[11] | Includes federal excise tax of $262 relating to cessions from Personal Lines to Reinsurance Operations. | |||||||||
[12] | Includes federal excise tax of $306 relating to cessions from Personal Lines to Reinsurance Operations. | |||||||||
[13] | Includes federal excise tax of $821 relating to cessions from Personal Lines to Reinsurance Operations. | |||||||||
[14] | Includes federal excise tax of $923 relating to cessions from Personal Lines to Reinsurance Operations. | |||||||||
[15] | Comprised of Global Indemnity Reinsurance's total assets less its investment in subsidiaries. |
Summary of Business Segment I75
Summary of Business Segment Information (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Commercial Lines Segment | ||||
Segment Reporting Information [Line Items] | ||||
Federal excise tax relating to cessions from Insurance Operations to Reinsurance Operations | $ 127 | $ 130 | $ 366 | $ 386 |
Personal Lines Segment | ||||
Segment Reporting Information [Line Items] | ||||
Federal excise tax relating to cessions from Insurance Operations to Reinsurance Operations | 262 | 306 | 821 | 923 |
American Reliable Insurance Company | Personal Lines Segment | ||||
Segment Reporting Information [Line Items] | ||||
Ceded premiums written | $ (1,427) | $ 7,328 | $ (185) | $ 30,910 |
Quota share agreement percentage | 100.00% | 100.00% | 100.00% | 100.00% |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
ASU No. 2014-09 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Fee income | $ 0.6 |