Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 27, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GBLI | ||
Entity Registrant Name | Global Indemnity Ltd | ||
Entity Central Index Key | 1,494,904 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 334,185,769 | ||
Ordinary Shares A | |||
Document Information [Line Items] | |||
Entity Ordinary Shares, Shares Outstanding | 10,046,737 | ||
Ordinary Shares B | |||
Document Information [Line Items] | |||
Entity Ordinary Shares, Shares Outstanding | 4,133,366 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed maturities: | ||
Available for sale, at fair value (amortized cost: $1,243,144 and $1,241,339) | $ 1,241,437 | $ 1,240,031 |
Equity securities: | ||
Available for sale, at fair value (cost: $124,915 and $119,515) | 140,229 | 120,557 |
Other invested assets | 77,820 | 66,121 |
Total investments | 1,459,486 | 1,426,709 |
Cash and cash equivalents | 74,414 | 75,110 |
Premiums receivable, net | 84,386 | 92,094 |
Reinsurance receivables, net | 105,060 | 143,774 |
Funds held by ceding insurers | 45,300 | 13,114 |
Federal income taxes receivable | 10,332 | |
Deferred federal income taxes | 26,196 | 40,957 |
Deferred acquisition costs | 61,647 | 57,901 |
Intangible assets | 22,549 | 23,079 |
Goodwill | 6,521 | 6,521 |
Prepaid reinsurance premiums | 28,851 | 42,583 |
Receivable for securities sold | 1,543 | |
Other assets | 75,384 | 51,104 |
Total assets | 2,001,669 | 1,972,946 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 634,664 | 651,042 |
Unearned premiums | 285,397 | 286,984 |
Federal income taxes payable | 219 | |
Ceded balances payable | 10,851 | 14,675 |
Payable for securities purchased | 3,717 | |
Contingent commissions | 7,984 | 9,454 |
Debt | 294,713 | 163,143 |
Other liabilities | 49,666 | 45,761 |
Total liabilities | 1,283,275 | 1,174,995 |
Commitments and contingencies (Note 15) | ||
Shareholders' equity: | ||
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued: 10,102,927 and 13,436,548, respectively; A ordinary shares outstanding: 10,073,376 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 | 434,730 | 430,283 |
Accumulated other comprehensive income, net of taxes | 8,983 | (618) |
Retained earnings | 275,838 | 368,284 |
Total shareholders' equity | 718,394 | 797,951 |
Total liabilities and shareholders' equity | 2,001,669 | 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 | Dec. 31, 2017 | Dec. 31, 2016 |
Available for sale, amortized cost | $ 1,243,144 | $ 1,241,339 |
Available for sale, at cost | $ 124,915 | $ 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 | 10,102,927 | 13,436,548 |
Ordinary shares, shares outstanding | 10,073,376 | 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 | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Revenues: | |||||||||||||||
Gross premiums written | $ 516,334 | $ 565,845 | $ 590,233 | ||||||||||||
Net premiums written | 450,180 | 470,940 | 501,244 | ||||||||||||
Net premiums earned | $ 109,216 | $ 108,619 | $ 107,073 | $ 113,126 | $ 109,472 | $ 119,553 | $ 117,804 | $ 121,636 | 438,034 | 468,465 | 504,143 | ||||
Net investment income | 11,705 | 10,134 | 8,840 | 8,644 | 8,880 | 8,795 | 6,562 | 9,746 | 39,323 | 33,983 | 34,609 | ||||
Net realized investment gains (losses): | |||||||||||||||
Other than temporary impairment losses on investments | (2,606) | (6,733) | (7,335) | ||||||||||||
Other net realized investment gains | 4,182 | 28,454 | 3,961 | ||||||||||||
Total net realized investment gains (losses) | 2,426 | (963) | (662) | 775 | 30,778 | 1,928 | (3,492) | (7,493) | 1,576 | 21,721 | (3,374) | ||||
Other income | 6,582 | 10,345 | 3,400 | ||||||||||||
Total revenues | 485,515 | 534,514 | 538,778 | ||||||||||||
Losses and Expenses: | |||||||||||||||
Net losses and loss adjustment expenses | 66,556 | 82,395 | 57,700 | 62,561 | 48,946 | 72,162 | 78,111 | 64,784 | 269,212 | 264,003 | 275,368 | ||||
Acquisition costs and other underwriting expenses | 48,723 | 45,002 | 43,457 | 46,551 | 47,889 | 48,129 | 48,542 | 52,090 | 183,733 | 196,650 | 201,303 | ||||
Corporate and other operating expenses | 25,714 | 17,338 | 24,448 | ||||||||||||
Interest expense | 16,906 | 8,905 | 4,913 | ||||||||||||
Income (loss) before income taxes | (10,304) | (16,779) | 7,753 | 9,280 | 46,535 | 10,598 | (11,468) | 1,953 | (10,050) | 47,618 | 32,746 | ||||
Income tax benefit | (499) | (2,250) | (8,723) | ||||||||||||
Net income | $ (22,998) | $ (8,924) | $ 10,089 | $ 12,282 | $ 38,373 | $ 9,535 | $ (5,165) | $ 7,125 | $ (9,551) | $ 49,868 | $ 41,469 | ||||
Net income (loss) | |||||||||||||||
Basic | [1] | $ (0.55) | $ 2.89 | $ 1.71 | |||||||||||
Diluted | $ (1.33) | $ (0.51) | $ 0.57 | $ 0.70 | $ 2.18 | $ 0.54 | $ (0.30) | $ 0.41 | $ (0.55) | [1] | $ 2.84 | [1] | $ 1.69 | [1] | |
Weighted-average number of shares outstanding | |||||||||||||||
Basic | 17,308,663 | 17,246,717 | 24,253,657 | ||||||||||||
Diluted | 17,308,663 | 17,547,061 | 24,505,851 | ||||||||||||
[1] | For the year ended December 31, 2017, "diluted" loss per share is the same as "basic" loss per share since there was a net loss for the period. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income (loss) | $ (9,551) | $ 49,868 | $ 41,469 |
Other comprehensive income (loss), net of tax: | |||
Unrealized holding gains (losses) | 9,677 | 10,058 | (17,457) |
Portion of other than temporary impairment losses recognized in other comprehensive income (loss) | (3) | (3) | (4) |
Reclassification adjustment for gains included in net income | (848) | (14,809) | (1,985) |
Unrealized foreign currency translation gains | 775 | 58 | 140 |
Other comprehensive income (loss), net of tax | 9,601 | (4,696) | (19,306) |
Comprehensive income, net of tax | $ 50 | $ 45,172 | $ 22,163 |
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, 2014 | 3,064,815 | 16,331,577 | 12,061,370 | |||||
Ordinary shares issued under share incentive plans | 121,812 | |||||||
A ordinary shares purchased | 11,895 | |||||||
Ordinary shares issued to directors | 36,321 | |||||||
Elimination of shares indirectly owned by subsidiary | 34,085 | |||||||
B Ordinary shares converted to A ordinary shares | 7,928,004 | (7,928,004) | ||||||
Ordinary shares redeemed | (8,260,870) | |||||||
Ordinary shares issued in connection with American Reliable acquisition | 267,702 | |||||||
Number at Dec. 31, 2015 | 3,110,795 | 16,424,546 | 4,133,366 | |||||
Balance at Dec. 31, 2014 | $ 519,590 | $ 23,384 | $ 466,717 | $ (101,404) | $ 2 | $ 1 | ||
A ordinary shares purchased, at cost | $ (333) | |||||||
Other comprehensive income (loss): | ||||||||
Change in unrealized holding gains (losses) | (19,436) | |||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | (10) | |||||||
Unrealized foreign currency translation gains | $ 140 | 140 | ||||||
Other comprehensive income (loss), net of tax | (19,306) | (19,306) | ||||||
Ordinary shares redeemed | (189,770) | |||||||
Elimination of shares indirectly owned by subsidiary | $ (706) | |||||||
Share compensation plans | 10,272 | |||||||
Net income (loss) | 41,469 | 41,469 | ||||||
Tax benefit on share-based compensation expense | 50 | 10 | ||||||
Balance at Dec. 31, 2015 | 749,926 | 529,872 | 4,078 | 318,416 | $ (102,443) | $ 2 | $ 1 | |
Ordinary shares issued under share incentive plans | 115,711 | |||||||
A ordinary shares purchased | 28,099 | |||||||
Ordinary shares issued to directors | 35,185 | |||||||
Reduction in treasury shares due to redomestication | (3,138,894) | (3,138,894) | ||||||
Number at Dec. 31, 2016 | 13,436,548 | 4,133,366 | ||||||
A ordinary shares purchased, at cost | $ (805) | |||||||
Other comprehensive income (loss): | ||||||||
Change in unrealized holding gains (losses) | (4,751) | |||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | (3) | |||||||
Unrealized foreign currency translation gains | 58 | 58 | ||||||
Other comprehensive income (loss), net of tax | (4,696) | (4,696) | ||||||
Reduction in treasury shares due to redomestication | (103,248) | $ 103,248 | $ (1) | |||||
Share compensation plans | 3,532 | |||||||
Net income (loss) | 49,868 | 49,868 | ||||||
Tax benefit on share-based compensation expense | 100 | 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 | 27,121 | |||||||
Ordinary shares redeemed | (3,397,031) | |||||||
Adjustment for shares redeemed indirectly owned by subsidiary | 34,085 | |||||||
Number at Dec. 31, 2017 | 29,551 | 10,102,927 | 4,133,366 | |||||
A ordinary shares purchased, at cost | $ (1,159) | |||||||
Other comprehensive income (loss): | ||||||||
Change in unrealized holding gains (losses) | 8,829 | |||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | (3) | |||||||
Unrealized foreign currency translation gains | 775 | 775 | ||||||
Other comprehensive income (loss), net of tax | 9,601 | 9,601 | ||||||
Ordinary shares redeemed | (83,015) | |||||||
Adjustment for gain on shares redeemed indirectly owned by subsidiary | 706 | 120 | ||||||
Share compensation plans | 3,741 | |||||||
Net income (loss) | (9,551) | (9,551) | ||||||
Balance at Dec. 31, 2017 | $ 718,394 | $ 434,730 | $ 8,983 | $ 275,838 | $ (1,159) | $ 1 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (9,551) | $ 49,868 | $ 41,469 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||
Amortization of the value of business acquired | 0 | 0 | 25,500 |
Amortization and depreciation | 6,505 | 6,312 | 5,284 |
Amortization of debt issuance costs | 232 | 123 | 47 |
Restricted stock and stock option expense | 3,741 | 3,531 | 10,271 |
Deferred federal income taxes | (1,018) | (2,727) | (7,201) |
Amortization of bond premium and discount, net | 7,899 | 9,828 | 13,643 |
Net realized investment (gains) losses | (1,576) | (21,721) | 3,374 |
Equity in the earnings of equity method limited liability investments | (4,741) | (5,190) | (2,533) |
Gain on the disposition of subsidiary | (6,857) | ||
Changes in: | |||
Premiums receivable, net | 7,708 | (2,849) | 25,325 |
Reinsurance receivables, net | 38,714 | (28,180) | 23,966 |
Funds held by ceding insurers | (31,635) | 2,923 | 9,147 |
Unpaid losses and loss adjustment expenses | (16,378) | (29,005) | (84,914) |
Unearned premiums | (1,587) | 699 | (6,764) |
Ceded balances payable | (3,824) | 10,086 | (11,430) |
Other assets and liabilities, net | (27,061) | (15,065) | (6,070) |
Contingent commissions | (1,470) | (1,615) | (6,264) |
Federal income tax receivable/payable | 406 | 5,047 | (1,689) |
Deferred acquisition costs, net | (3,746) | (1,384) | (31,279) |
Prepaid reinsurance premiums | 13,732 | 1,780 | 3,868 |
Net cash provided by (used for) operating activities | (23,650) | (24,396) | 3,750 |
Cash flows from investing activities: | |||
Cash release from escrow for business acquisition | 113,696 | ||
Acquisition of business, net of cash acquired | (92,336) | ||
Proceeds from sale of fixed maturities | 918,439 | 381,389 | 647,404 |
Proceeds from sale of equity securities | 32,218 | 111,156 | 39,723 |
Proceeds from sale of preferred stock | 1,540 | ||
Proceeds from maturity of fixed maturities | 145,475 | 86,009 | 157,845 |
Proceeds from limited partnership distribution | 17,040 | 9,450 | 5,959 |
Proceeds from disposition of subsidiary, net of cash and cash equivalents disposed of $1,269 | 16,922 | ||
Amount received (paid) in connection with derivatives | 1,464 | (1,010) | (6,604) |
Purchases of fixed maturities | (1,078,199) | (437,690) | (627,983) |
Purchases of equity securities | (36,647) | (109,940) | (38,451) |
Purchases of other invested assets | (24,000) | (14,125) | (3,550) |
Net cash provided by (used for) investing activities | (24,210) | 42,161 | 197,243 |
Cash flows from financing activities: | |||
Net borrowings (repayments) under margin borrowing facility | 5,584 | (9,000) | (99,027) |
Redemption of ordinary shares | (83,015) | (189,770) | |
Proceeds from issuance of subordinated notes | 130,000 | 100,000 | |
Debt issuance cost | (4,246) | (14) | (3,659) |
Purchases of A ordinary shares | (1,159) | (805) | (333) |
Tax benefit on share-based compensation expense | 127 | 10 | |
Net cash provided by (used for) financing activities | 47,164 | (9,692) | (192,779) |
Net change in cash and cash equivalents | (696) | 8,073 | 8,214 |
Cash and cash equivalents at beginning of period | 75,110 | 67,037 | 58,823 |
Cash and cash equivalents at end of period | $ 74,414 | $ 75,110 | $ 67,037 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Proceeds from disposition of subsidiary, cash disposed | $ 1,269 |
Principles of Consolidation and
Principles of Consolidation and Basis of Presentation | 12 Months Ended |
Dec. 31, 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. See Note 2 below for details regarding the redomestication. In connection with the redomestication, Global Indemnity plc was converted to a private unlimited company and was placed into liquidation. The liquidation was finalized in 2017. 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 primarily 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, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The Company’s Reinsurance Operations consist solely of the operations of its Bermuda-based wholly-owned subsidiary, Global Indemnity Reinsurance. Global Indemnity Reinsurance is a treaty reinsurer of specialty property and casualty insurance and reinsurance companies. The Company’s Reinsurance Operations segment provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. During the 1 st re-evaluated The consolidated financial statements have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The consolidated financial statements include the accounts of Global Indemnity and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Redomestication
Redomestication | 12 Months Ended |
Dec. 31, 2017 | |
Redomestication | 2. Redomestication On June 20, 2016, the Company’s Board of Directors unanimously approved a plan for the Company to redomicile from Ireland to the Cayman Islands. On September 14, 2016, the Company held a special meeting of the holders of its A ordinary shares and B ordinary shares and an extraordinary general meeting of its shareholders. All resolutions required to effectuate the redomestication were approved by the requisite shareholder vote. On October 21, 2016, the High Court of Ireland sanctioned Global Indemnity plc’s scheme of arrangement related to the redomestication from Ireland to Cayman Islands. The redomestication transaction was completed on November 7, 2016 and as a result, Global Indemnity Limited, a Cayman Islands exempted company, replaced Global Indemnity plc as the ultimate holding company of the Global Indemnity group of companies. In connection with the redomestication to the Cayman Islands, each A ordinary share of Global Indemnity plc was cancelled and replaced with one A ordinary share of Global Indemnity Limited and each B ordinary share of Global Indemnity plc was cancelled and replaced with one B ordinary share of Global Indemnity Limited. The Global Indemnity Limited A ordinary shares trade on the NASDAQ Global Select Market (“NASDAQ”) under the ticker symbol GBLI, the same symbol under which Global Indemnity plc’s A ordinary shares were previously listed. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies Investments The Company’s investments in fixed maturities and equity securities are classified as available for sale and are carried at their fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of the Company’s available for sale portfolio, excluding interests in limited liability companies and limited partnerships, are determined on the basis of quoted market prices where available. If quoted market prices are not available, the Company uses third party pricing services to assist in determining fair value. In many instances, these services examine the pricing of similar instruments to estimate fair value. The Company purchases bonds with the expectation of holding them to their maturity; however, changes to the portfolio are sometimes required to assure it is appropriately matched to liabilities. In addition, changes in financial market conditions and tax considerations may cause the Company to sell an investment before it matures. The difference between amortized cost and fair value of the Company’s available for sale investments, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders’ equity and, accordingly, has no effect on net income other than for the credit loss component of impairments deemed to be other than temporary. For investments in limited liability companies and limited partnerships where the ownership interest is less than 3%, the Company carries these investments at fair value, and the change in the difference between cost and the fair value of the partnership interests, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders’ equity and, accordingly, has no effect on net income other than for impairments deemed to be other than temporary. The Company uses the equity method to account for an investments in limited liability companies and limited partnerships where its ownership interest exceeds 3%. The equity method of accounting for an investment in a limited liability company or limited partnership requires that its cost basis be updated to account for the income or loss earned on the investment. The income or loss associated with the limited liability companies or limited partnerships is reflected in the consolidated statements of operations, and the adjusted cost basis approximates fair value. The Company’s investments in other invested assets were valued at $77.8 million and $66.1 million as of December 31, 2017 and 2016, respectively. These amounts relate to investments in limited liability companies and limited partnerships. The Company does not have access to daily valuations, therefore; the estimated fair value of the limited liability companies and limited partnerships are based on net asset value as a practical expedient for the limited liability companies and limited partnerships. Net realized gains and losses on investments are determined based on the first-in, first-out The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each fixed maturity security in an unrealized loss position to assess whether the security has a credit loss. Specifically, the Company considers credit rating, market price, and issuer specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities for which the Company determines that a credit loss is likely are subjected to further analysis through discounted cash flow testing to estimate the credit loss to be recognized in earnings, if any. The specific methodologies and significant assumptions used by asset class are discussed below. Upon identification of such securities and periodically thereafter, a detailed review is performed to determine whether the decline is considered other than temporary. This review includes an analysis of several factors, including but not limited to, the credit ratings and cash flows of the securities and the magnitude and length of time that the fair value of such securities is below cost. For fixed maturities, the factors considered in reaching the conclusion that a decline below cost is other than temporary include, among others, whether: (1) the issuer is in financial distress; (2) the investment is secured; (3) a significant credit rating action occurred; (4) scheduled interest payments were delayed or missed; (5) changes in laws or regulations have affected an issuer or industry; (6) the investment has an unrealized loss and was identified by the Company’s investment manager as an investment to be sold before recovery or maturity; and (7) the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized. According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met, the Company must recognize an other than temporary impairment with the entire unrealized loss being recorded through earnings. For debt securities in an unrealized loss position not meeting these conditions, the Company assesses whether the impairment of a security is other than temporary. If the impairment is deemed to be other than temporary, the Company must separate the other than temporary impairment into two components: the amount representing the credit loss and the amount related to all other factors, such as changes in interest rates. The credit loss represents the portion of the amortized book value in excess of the net present value of the projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. The credit loss component of the other than temporary impairment is recorded through earnings, whereas the amount relating to factors other than credit losses is recorded in other comprehensive income, net of taxes. For equity securities, management carefully reviews all securities with unrealized losses to determine if a security should be impaired and further focuses on securities that have either: (1) persisted with unrealized losses for more than twelve consecutive months or (2) the value of the investment has been 20% or more below cost for six continuous months or more. The amount of any write-down, including those that are deemed to be other than temporary, is included in earnings as a realized loss in the period in which the impairment arose. For an analysis of other than temporary losses that were recorded for the years ended December 31, 2017, 2016, and 2015, please see Note 5 below. Variable Interest Entities A Variable Interest Entity (“VIE”) refers to an investment in which an investor holds a controlling interest that is not based on the majority of voting rights. Under the VIE model, the party that has the power to exercise significant management influence and maintain a controlling financial interest in the entity’s economics is said to be the primary beneficiary, and is required to consolidate the entity within their results. Other entities that participate in a VIE, for which their financial interests fluctuate with changes in the fair value of the investment entity’s net assets but do not have significant management influence and the ability to direct the VIE’s significant economic activities are said to have a variable interest in the VIE but do not consolidate the VIE in their financial results. The Company has variable interests in three VIEs for which it is not the primary beneficiary. These investments are accounted for under the equity method of accounting as their ownership interest exceeds 3% of their respective investments. Cash and Cash Equivalents For the purpose of the statements of cash flows, the Company considers all liquid instruments with an original maturity of three months or less to be cash equivalents. The Company has a cash management program that provides for the investment of excess cash balances primarily in short-term money market instruments. Generally, bank balances exceed federally insured limits. The carrying amount of cash and cash equivalents approximates fair value. At December 31, 2017 and 2016, the Company had approximately $67.1 million and $52.0 million, respectively, of cash and cash equivalents that was invested in a diversified portfolio of high quality short-term debt securities. Valuation of Premium Receivable The Company evaluates the collectability of premium receivable based on a combination of factors. In instances in which the Company is aware of a specific circumstance where a party may be unable to meet its financial obligations to the Company, a specific allowance for bad debts against amounts due is recorded to reduce the net receivable to the amount reasonably believed by management to be collectible. For all remaining balances, allowances are recognized for bad debts based on the length of time the receivables are past due. The allowance for bad debts was $2.2 million and $1.9 million as of December 31, 2017 and 2016, respectively. Goodwill and Intangible Assets The Company tests for impairment of goodwill at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of goodwill for impairment using both qualitative and quantitative factors. Impairment of goodwill is recognized only if the carrying amount of the reporting unit, including goodwill, exceeds the fair value of the reporting unit. The amount of the impairment loss would be equal to the excess carrying value of the goodwill over the implied fair value of the reporting unit goodwill. Based on the qualitative assessment performed, there was no impairment of goodwill as of December 31, 2017. Impairment of intangible assets with an indefinite useful life is tested at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of indefinite lived intangible assets for impairment using both qualitative and quantitative factors. Impairment of indefinite lived intangible assets is recognized only if the carrying amount of the intangible assets exceeds the fair value of said assets. The amount of the impairment loss would be equal to the excess carrying value of the assets over the fair value of said assets. Based on the qualitative assessment performed, there were no impairments of indefinite lived intangible assets as of December 31, 2017. Intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated useful lives. The carrying amounts of definite lived intangible assets are regularly reviewed for indicators of impairment in accordance with applicable accounting guidance. Impairment is recognized only if the carrying amount of the intangible asset is in excess of its undiscounted projected cash flows. The impairment is measured as the difference between the carrying amount and the estimated fair value of the asset. As of December 31, 2017, there were no triggering events that occurred during the year that would result in an impairment of definite lived intangible assets. See Note 8 for additional information on goodwill and intangible assets. Reinsurance In the normal course of business, the Company seeks to reduce the loss that may arise from events that cause unfavorable underwriting results by reinsuring certain levels of risk from various areas of exposure with reinsurers. Amounts receivable from reinsurers are estimated in a manner consistent with the reinsured policy and the reinsurance contract. The Company regularly reviews the collectability of reinsurance receivables. An allowance for uncollectible reinsurance receivable is recognized based on the financial strength of the reinsurers and the length of time any balances are past due. Any changes in the allowance resulting from this review are included in net losses and loss adjustment expenses on the consolidated statements of operations during the period in which the determination is made. The allowance for uncollectible reinsurance was $8.0 million as of December 31, 2017 and 2016. The applicable accounting guidance requires that the reinsurer must assume significant insurance risk under the reinsured portions of the underlying insurance contracts and that there must be a reasonably possible chance that the reinsurer may realize a significant loss from the transaction. The Company has evaluated its reinsurance contracts and concluded that each contract qualifies for reinsurance accounting treatment pursuant to this guidance. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. The deferred tax asset balance is analyzed regularly by management. This assessment requires significant judgment and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of carryforward periods, and tax planning strategies and/or actions. Management believes that it is more likely than not that the results of future operations can generate sufficient taxable income to realize the remaining deferred income tax assets, and accordingly, the Company has not established any valuation allowances. Deferred Acquisition Costs The costs of acquiring new and renewal insurance and reinsurance contracts include commissions, premium taxes and certain other costs that are directly related to the successful acquisition of new and renewal insurance and reinsurance contracts. The excess of the Company’s costs of acquiring new and renewal insurance and reinsurance contracts over the related ceding commissions earned from reinsurers is capitalized as deferred acquisition costs and amortized over the period in which the related premiums are earned. The amortization of deferred acquisition costs for the years ended December 31, 2017, 2016, and 2015 was $109.0 million, $114.3 million, and $86.2 million, respectively. Premium Deficiency A premium deficiency is recognized if the sum of expected loss and loss adjustment expenses and unamortized acquisition costs exceeds related unearned premium after consideration of investment income. This evaluation is done at a product line level in Insurance Operations and at a treaty level in Reinsurance Operations. Any future expected loss on the related unearned premium is recorded first by impairing the unamortized acquisition costs on the related unearned premium followed by an increase to loss and loss adjustment expense reserves on additional expected loss in excess of unamortized acquisition costs. For the years ended December 31, 2017, 2016, and 2015, the total premium deficiency charges were $0.3 million, $0.3 million, and $0.2 million, respectively, comprised solely of reductions to unamortized deferred acquisition costs within the commercial automobile lines in the Commercial Lines Segment. Based on the Company’s analysis, the Company expensed acquisition cost as incurred for the remainder of 2017, 2016 and 2015 for the commercial automobile lines in the Commercial Lines Segment. As the charges were a reduction of unamortized deferred acquisition costs in each respective period, no premium deficiency reserve existed as of December 31, 2017 or 2016. Derivative Instruments The Company uses derivative instruments to manage its exposure to cash flow variability from interest rate risk. The derivative instruments are carried on the balance sheet at fair value and included in other assets and other liabilities. Changes in the fair value of the derivative instruments and the periodic net interest settlements under the derivatives instruments are recognized as net realized investment gains (losses) on the consolidated statements of operations. Margin Borrowing Facility The carrying amounts reported in the balance sheet represent the outstanding borrowings. The outstanding borrowings are due on demand; therefore, the cash receipts and cash payments related to the margin borrowing facility are shown net in the consolidated statements of cash flows. Subordinated Notes The carrying amounts reported in the balance sheet represent the outstanding balances, net of deferred issuance cost. See Note 12 for details. Unpaid Losses and Loss Adjustment Expenses The liability for unpaid losses and loss adjustment expenses represents the Company’s best estimate of future amounts needed to pay losses and related settlement expenses with respect to events insured by the Company. This liability is based upon the accumulation of individual case estimates for losses reported prior to the close of the accounting period with respect to direct business, estimates received from ceding companies with respect to assumed reinsurance, and estimates of unreported losses. The process of establishing the liability for unpaid losses and loss adjustment is complex, requiring the use of informed actuarially based estimates and management’s judgment. In some cases, significant periods of time, up to several years or more, may elapse between the occurrence of an insured loss and the reporting of that loss to the Company. To establish this liability, the Company regularly reviews and updates the methods of making such estimates and establishing the resulting liabilities. Any resulting adjustments are recorded in consolidated statements of operations during the period in which the determination is made. Retirement of Treasury Stock Upon the formal retirement of treasury stock, the Company offsets the par value of the treasury stock that is being retired against Ordinary Shares and reflects any excess of cost over par value as a deduction from Additional Paid-in Share Redemptions When shares are redeemed, the Company offsets the par value of the redeemed shares against Ordinary Shares and reflects any excess of cost over par value as a deduction from Retained Earnings. Premiums Premiums are recognized as revenue ratably over the term of the respective policies and treaties. Unearned premiums are computed on a pro rata basis to the day of expiration. Mandatory reinstatement premiums assessed on reinsurance policies are earned in the period of the loss event that gave rise to the reinstatement premiums. Contingent Commissions Certain professional general agencies of the Insurance Operations are paid special incentives, referred to as contingent commissions, when results of business produced by these agencies are more favorable than predetermined thresholds. Similarly, in some circumstances, companies that cede business to the Reinsurance Operations are paid profit commissions based on the profitability of the ceded portfolio. These commissions are charged to other underwriting expenses when incurred. Share-Based Compensation The Company accounts for stock options and other equity based compensation using the modified prospective application of the fair value-based method permitted by the appropriate accounting guidance. See Note 16 for details. Earnings per Share Basic earnings per share have been calculated by dividing net income available to common shareholders by the weighted-average ordinary shares outstanding. In periods of net income, diluted earnings per share have been calculated by dividing net income available to common shareholders by the sum of the weighted-average ordinary shares outstanding and the weighted-average common share equivalents outstanding, which include options and other equity awards. In periods of net loss, diluted earnings per share is the same as basic earnings per share. See Note 18 for details. Foreign Currency The Company maintains investments and cash accounts in foreign currencies related to the operations of its business. At period-end, re-measures non-U.S. re-measures re-measurement Other Income On September 30, 2016, Diamond State Insurance Company sold all the outstanding shares of capital stock of one of its wholly owned subsidiaries, United National Specialty Insurance Company, to an unrelated party. Diamond State Insurance Company received a one-time In addition, other income is comprised of fee income on policies issued, commission income, accrued interest on the anticipated indemnification of unpaid loss and loss adjustment expense reserve, and foreign exchange gains and losses. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2017 | |
Acquisition | 4. Acquisition On January 1, 2015, Global Indemnity Group, Inc., a subsidiary of the Company, acquired 100% of the voting equity interest of American Reliable from American Bankers Insurance Group, Inc. by paying $113.7 million in cash and assuming $283.9 million of customary insurance related liabilities, obligations, and mandates. Per the American Reliable Share Purchase Agreement (“SPA”), the ultimate purchase price is subject to (i) accounting procedures that were performed in 2015 to determine GAAP book value and (ii) indemnification on future development on recorded loss and loss adjustment expenses as of December 31, 2014. In accordance with the SPA, on the third calendar year following the calendar year of the closing, if loss and loss adjustment expenses for accident years 2014 and prior are lower than recorded unpaid loss and loss adjustment expenses as of December 31, 2014, Global Indemnity Group, Inc. will pay the variance to American Bankers Group, Inc. Conversely, if loss and loss adjustment expenses for accident years 2014 and prior exceed recorded unpaid loss and loss adjustment expenses as of December 31, 2014, American Bankers Group, Inc. will pay the variance to Global Indemnity Group, Inc. In accordance with a dispute resolution agreement between Global Indemnity Group, Inc. and American Bankers Group, Inc., any variance paid related to the loss indemnification will be subject to interest of 5% compounded semi-annually. The Company’s purchase price, based on available financial information at the date of acquisition, was $99.8 million. The results of American Reliable’s operations have been included in the Company’s consolidated financial statements since the date of the acquisition on January 1, 2015. The purchase of American Reliable expanded Global Indemnity’s product offerings. American Reliable is a specialty company that distributes personal lines products written on an admitted basis that are unusual and harder to place. It complements Global Indemnity’s existing U.S. Insurance Operations that primarily distribute commercial lines products on an excess and surplus lines basis. American Reliable is domiciled in Arizona and as such is subject to its state insurance department regulations. For the year ended December 31, 2015, American Reliable had total revenues of $259.0 million and pre-tax The Company has finalized its process of valuing the assets acquired and liabilities assumed. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the date of the acquisition. (Dollars in thousands) ASSETS: Investments $ 226,458 Cash and cash equivalents 21,360 Premiums receivables, net 26,102 Accounts receivable 11,311 Reinsurance receivables 13,842 Prepaid reinsurance premiums 43,506 Intangible assets 32,000 Deferred federal income taxes 915 Other assets 6,473 Total assets 381,967 LIABILITIES: Unearned premiums 172,234 Unpaid losses and loss adjustment expenses 89,489 Reinsurance balances payable 13,219 Contingent commissions 3,903 Other liabilities 5,026 Total liabilities 283,871 Estimated fair value of net assets acquired 98,096 Purchase price 99,797 Goodwill $ 1,701 The transaction was accounted for using the purchase method of accounting. The assets and liabilities acquired by the Company were adjusted to estimated fair value. The $1.7 million excess of cash and acquisition cost over the estimated fair value of assets acquired was recognized as goodwill. Under the purchase method of accounting, goodwill is not amortized but is tested for impairment at least annually. Goodwill of $1.7 million, arising from the acquisition, consists largely of the synergies and economies of scales expected from combining the operations of Global Indemnity and American Reliable. The Company has assigned goodwill of $1.7 million to the Personal Lines segment. There is no tax goodwill. An identification and valuation of intangible assets was performed that resulted in the recognition of intangible assets of $32.0 million with values assigned as follows: (Dollars in thousands) Description Useful Life Amount State insurance licenses Indefinite $ 5,000 Value of business acquired < 1 year 25,500 Agent relationships 10 years 900 Trade name 7 years 600 $ 32,000 Intangible assets arising from the acquisition are deductible for income tax purposes over 15 years. The following table presents details of the Company’s intangible assets arising from the American Reliable acquisition as of December 31, 2015: (Dollars in thousands) Description Useful Life Cost Accumulated Net State insurance licenses Indefinite $ 5,000 $ — $ 5,000 Value of business acquired < 1 year 25,500 25,500 0 Agent relationships 10 years 900 90 810 Trade name 7 years 600 86 514 $ 32,000 $ 25,676 $ 6,324 Amortization related to the Company’s definite lived intangible assets resulting from American Reliable acquisition was $25.7 million for the year ended December 31, 2015. As of December 31, 2015, the Company expected that amortization expense for the next five years related to the American Reliable acquisition will be as follows: (Dollars in thousands) 2016 $ 176 2017 176 2018 176 2019 176 2020 176 As of December 31, 2015, the fair value, gross contractual amounts due, and contractual cash flows not expected to be collected of acquired receivables were as follows: (Dollars in thousands) Fair Value Gross Contractual Premium receivables $ 26,102 $ 26,896 $ 794 Accounts receivable 11,311 11,311 — Reinsurance receivables 13,842 13,842 — In connection with the acquisition, the Company agreed to pay to Fox Paine & Company an investment banking fee of 3% of the amount paid plus the additional capital required to operate American Reliable on a standalone basis and a $1.5 million investment advisory fee, which in the aggregate, totaled $6.5 million. This amount was included in corporate and other operating expenses on the Company’s Consolidated Statements of Operations during the year ended December 31, 2015. As payment for these fees, 267,702 A ordinary shares of Global Indemnity were issued under the Global Indemnity plc Share Incentive Plan in May, 2015. These shares were registered but cannot be sold until the earlier of five years or a change of control. See Note 16 for additional information on the Company’s share incentive plan, including the Global Indemnity plc Share Incentive Plan. Additional costs, mainly professional fees, of $5.1 million were incurred in connection with the acquisition of American Reliable. Of this amount, $1.8 million and $3.3 million was recorded as corporate and other operating expenses on the Company’s Consolidated Statements of Operations during the years ended December 31, 2015 and 2014, respectively. During the year ended December 31, 2015, the Company paid approximately $1.6 million in employee compensation related costs, which were related to periods prior to the Acquisition. These costs were accrued by American Reliable and were included in the fair value of net assets acquired by Global Indemnity Group, Inc. on January 1, 2015. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments | 5. Investments The amortized cost and estimated fair value of investments were as follows as of December 31, 2017 and 2016: (Dollars in thousands) Amortized Cost Gross Gross Estimated Fair Value Other than AOCI (1) As of December 31, 2017 Fixed maturities: U.S. treasury and agency obligations $ 105,311 $ 562 $ (1,193 ) $ 104,680 $ — Obligations of states and political subdivisions 94,947 441 (274 ) 95,114 — Mortgage-backed securities 150,237 404 (1,291 ) 149,350 — Asset-backed securities 203,827 267 (393 ) 203,701 (1 ) Commercial mortgage-backed securities 140,761 101 (1,067 ) 139,795 — Corporate bonds 422,486 2,295 (1,391 ) 423,390 — Foreign corporate bonds 125,575 377 (545 ) 125,407 — Total fixed maturities 1,243,144 4,447 (6,154 ) 1,241,437 (1 ) Common stock 124,915 18,574 (3,260 ) 140,229 — Other invested assets 77,820 — — 77,820 — Total $ 1,445,879 $ 23,021 $ (9,414 ) $ 1,459,486 $ (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 AOCI (1) 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 5% of shareholders’ equity at December 31, 2017 and 2016. The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at December 31, 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 $ 70,222 $ 70,165 Due in one year through five years 435,122 434,078 Due in five years through ten years 235,233 236,552 Due in ten years through fifteen years 2,187 2,205 Due after fifteen years 5,555 5,591 Mortgage-backed securities 150,237 149,350 Asset-backed securities 203,827 203,701 Commercial mortgage-backed securities 140,761 139,795 Total $ 1,243,144 $ 1,241,437 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, 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 $ 79,403 $ (962 ) $ 17,469 $ (231 ) $ 96,872 $ (1,193 ) Obligations of states and political subdivisions 34,537 (149 ) 12,060 (125 ) 46,597 (274 ) Mortgage-backed securities 127,991 (1,247 ) 1,866 (44 ) 129,857 (1,291 ) Asset-backed securities 97,817 (371 ) 6,423 (22 ) 104,240 (393 ) Commercial mortgage-backed securities 83,051 (523 ) 27,976 (544 ) 111,027 (1,067 ) Corporate bonds 147,064 (754 ) 53,024 (637 ) 200,088 (1,391 ) Foreign corporate bonds 53,320 (305 ) 20,582 (240 ) 73,902 (545 ) Total fixed maturities 623,183 (4,311 ) 139,400 (1,843 ) 762,583 (6,154 ) Common stock 32,759 (3,260 ) — — 32,759 (3,260 ) Total $ 655,942 $ (7,571 ) $ 139,400 $ (1,843 ) $ 795,342 $ (9,414 ) (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 Subject to the risks and uncertainties in evaluating the potential impairment of a security’s value, the impairment evaluation conducted by the Company as of December 31, 2017 concluded the unrealized losses discussed above are not other than temporary impairments. The impairment evaluation process is discussed in the “Investment” section of Note 3 (“Summary of Significant Accounting Policies”). The following is a description, by asset type, of the methodology and significant inputs that the Company used to measure the amount of credit loss recognized in earnings, if any: U.S. treasury and agency obligations Obligations of states and political subdivisions in-house Mortgage-backed securities (“MBS”) HPI-adjusted Asset backed securities (“ABS”) in-depth Commercial mortgage-backed securities (“CMBS”) re-underwritten Corporate bonds Foreign bonds Common stock The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the years ended December 31, 2017, 2016, and 2015: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Fixed maturities: OTTI losses, gross $ (31 ) $ (259 ) $ (24 ) Portion of loss recognized in other comprehensive income (pre-tax) — — — Net impairment losses on fixed maturities recognized in earnings (31 ) (259 ) (24 ) Equity securities (2,575 ) (6,474 ) (7,311 ) Total $ (2,606 ) $ (6,733 ) $ (7,335 ) The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company as of December 31, 2017, 2016, and 2015 for which a portion of the OTTI loss was recognized in other comprehensive income. Years Ended (Dollars in thousands) 2017 2016 2015 Balance at beginning of period $ 31 $ 31 $ 50 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 (18 ) — (19 ) Balance at end of period $ 13 $ 31 $ 31 Accumulated Other Comprehensive Income, Net of Tax Accumulated other comprehensive income, net of tax, as of December 31, 2017 and 2016 was as follows: December 31, (Dollars in thousands) 2017 2016 Net unrealized gains (losses) from : Fixed maturities $ (1,707 ) $ (1,308 ) Common stock 15,314 1,042 Foreign currency fluctuations 551 — Deferred taxes (5,175 ) (352 ) Accumulated other comprehensive income, net of tax $ 8,983 $ (618 ) The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the years ended December 31, 2017 and 2016: Year Ended December 31, 2017 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ (554 ) $ (64 ) $ (618 ) Other comprehensive income (loss) before reclassification 9,455 994 10,449 Amounts reclassified from accumulated other comprehensive income (loss) (629 ) (219 ) (848 ) Other comprehensive income (loss) 8,826 775 9,601 Ending balance $ 8,272 $ 711 $ 8,983 Year Ended December 31, 2016 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ 4,200 $ (122 ) $ 4,078 Other comprehensive income (loss) before reclassification 10,374 (261 ) 10,113 Amounts reclassified from accumulated other comprehensive income (loss) (15,128 ) 319 (14,809 ) Other comprehensive income (loss) (4,754 ) 58 (4,696 ) Ending balance $ (554 ) $ (64 ) $ (618 ) The reclassifications out of accumulated other comprehensive income for the years ended December 31, 2017 and 2016 were as follows: (Dollars in thousands) Amounts Reclassified Details about Accumulated Other Comprehensive Income Components Affected Line Item in the Consolidated 2017 2016 Unrealized gains and losses on available for sale securities Other net realized investment (gains) $ (3,921 ) $ (30,055 ) Other than temporary impairment losses on investments 2,606 6,733 Total before tax (1,315 ) (23,322 ) Income tax expense 686 8,194 Unrealized gains and losses on available for sale securities, net of tax (629 ) (15,128 ) Foreign currency items Other net realized investment (gains) losses (336 ) 491 Income tax expense (benefit) 117 (172 ) Foreign currency items, net of tax (219 ) 319 Total reclassifications Total reclassifications, net of tax $ (848 ) $ (14,809 ) Net Realized Investment Gains (Losses) The components of net realized investment gains (losses) for the years ended December 31, 2017, 2016, and 2015 were as follows: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Fixed maturities: Gross realized gains $ 4,066 $ 2,947 $ 3,565 Gross realized losses (3,387 ) (691 ) (2,180 ) Net realized gains 679 2,256 1,385 Common stock: Gross realized gains 4,178 28,785 10,379 Gross realized losses (3,206 ) (8,210 ) (8,246 ) Net realized gains 972 20,575 2,133 Preferred stock: Gross realized gains — — 96 Gross realized losses — — — Net realized gains — — 96 Derivatives: Gross realized gains 3,555 3,733 — Gross realized losses (3,630 ) (4,843 ) (6,988 ) Net realized gains (losses) (1) (75 ) (1,110 ) (6,988 ) Total net realized investment gains (losses) $ 1,576 $ 21,721 $ (3,374 ) (1) Includes $3.6 million, $4.8 million, and $5.4 million of periodic net interest settlements related to the derivatives for the years ended December 31, 2017, 2016, and 2015, respectively. The proceeds from sales and redemptions of available for sale securities resulting in net realized investment gains (losses) for the years ended December 31, 2017, 2016, and 2015 were as follows: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Fixed maturities $ 918,439 $ 381,389 $ 647,404 Equity securities 32,218 111,156 39,723 Preferred stock — — 1,540 Net Investment Income The sources of net investment income for the years ended December 31, 2017, 2016, and 2015 were as follows: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Fixed maturities $ 33,020 $ 30,337 $ 32,091 Equity securities 3,595 3,302 3,125 Cash and cash equivalents 894 217 82 Other invested assets 4,741 5,295 2,620 Total investment income 42,250 39,151 37,918 Investment expense (1) (2,927 ) (5,168 ) (3,309 ) Net investment income $ 39,323 $ 33,983 $ 34,609 (1) Investment expense for the year ended December 31, 2016 includes $1.5 million in upfront fees necessary to enter into a new investment. See Note 15 for additional information on the Company’s $40 million commitment related to this investment. The Company’s total investment return on a pre-tax Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Net investment income $ 39,323 $ 33,983 $ 34,609 Net realized investment gains (losses) 1,576 21,721 (3,374 ) Change in unrealized holding gains and losses 14,424 (8,240 ) (25,673 ) Net realized and unrealized investment returns 16,000 13,481 (29,047 ) Total investment return $ 55,323 $ 47,464 $ 5,562 Total investment return % 3.5 % 3.1 % 0.3 % Average investment portfolio $ 1,597,487 $ 1,507,184 $ 1,752,785 Insurance Enhanced Asset-Backed and Credit Securities As of December 31, 2017, the Company held insurance enhanced asset-backed, commercial mortgage-backed, and credit securities with a market value of approximately $33.9 million. Approximately $1.6 million of these securities were tax-free pre-refunded 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 Securities Municipal Bond Insurance Association $ 1,157 $ — $ — $ 1,157 Gov’t National Housing Association 425 — 425 — Total backed by financial guarantors 1,582 — 425 1,157 Other credit enhanced municipal bonds — — — — Total 1,582 — 425 1,157 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 December 31, 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 December 31, 2017 and 2016: Estimated Fair Value (Dollars in thousands) December 31, December 31, On deposit with governmental authorities $ 26,852 $ 29,079 Intercompany trusts held for the benefit of U.S. policyholders 328,494 351,002 Held in trust pursuant to third party requirements 94,098 88,178 Letter of credit held for third party requirements 3,944 4,871 Securities held as collateral for borrowing arrangements (1) 88,040 85,939 Total $ 541,428 $ 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 $26.3 million and $32.9 million as of December 31, 2017 and 2016, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $40.5 million and $48.6 million at December 31, 2017 and 2016, respectively. The fair value of a second VIE that provides financing for middle market companies, was $33.8 million and $33.2 million at December 31, 2017 and 2016, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $43.8 million and $42.3 million at December 31, 2017 and 2016, respectively. During the 2 nd |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments | 6. Derivative Instruments Interest rate swaps are used by the Company primarily to reduce risks from changes in interest rates. Under the terms of the interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company accounts for the interest rate swaps as non-hedge The following table summarizes information on the location and the gross amount of the derivatives’ fair value on the consolidated balance sheets as of December 31, 2017 and 2016: (Dollars in thousands) December 31, 2017 December 31, 2016 Derivatives Not Designated as Hedging Instruments under ASC 815 Balance Sheet Notional Fair Value Notional Fair Value Interest rate swap agreements Other liabilities $ 200,000 $ (7,968 ) $ 200,000 $ (11,524 ) The following table summarizes the net gains (losses) included in the consolidated statements of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the years ended December 31, 2017, 2016, and 2015: Years Ended December 31, (Dollars in thousands) Consolidated Statements of 2017 2016 2015 Interest rate swap agreements Net realized investment gains (losses) $ (75 ) $ (1,110 ) $ (6,988 ) As of December 31, 2017 and 2016, the Company is due $3.1 million and $5.3 million, respectively, for funds it needed to post to execute the swap transaction and $9.5 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 | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements | 7. Fair Value Measurements The accounting standards related to fair value measurements define fair value, establish a framework for measuring fair value, outline a fair value hierarchy based on inputs used to measure fair value, and enhance disclosure requirements for fair value measurements. These standards do not change existing guidance as to whether or not an instrument is carried at fair value. The Company has determined that its fair value measurements are in accordance with the requirements of these accounting standards. The Company’s invested assets and derivative instruments are carried at their fair value and are categorized based upon a fair value hierarchy: • Level 1 — inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date. • Level 2 — inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly. • Level 3 — inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset. The following table presents information about the Company’s invested assets and derivative instruments measured at fair value on a recurring basis as of December 31, 2017 and 2016, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. As of December 31, 2017 Fair Value Measurements (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 104,680 $ — $ — $ 104,680 Obligations of states and political subdivisions — 95,114 — 95,114 Mortgage-backed securities — 149,350 — 149,350 Commercial mortgage-backed securities — 139,795 — 139,795 Asset-backed securities — 203,701 — 203,701 Corporate bonds — 423,390 — 423,390 Foreign corporate bonds — 125,407 — 125,407 Total fixed maturities 104,680 1,136,757 — 1,241,437 Common stock 140,229 — — 140,229 Total assets measured at fair value (1) $ 244,909 $ 1,136,757 $ — $ 1,381,666 Liabilities: Derivative instruments $ — $ 7,968 $ — $ 7,968 Total liabilities measured at fair value $ — $ 7,968 $ — $ 7,968 (1) Excluded from the table above are limited partnerships of $77.8 million at December 31, 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 December 31, 2017 and 2016 was as follows: December 31, 2017 December 31, 2016 (Dollars in thousands) Carrying Fair Value Carrying Fair Value Margin Borrowing Facility $ 72,230 $ 72,230 $ 66,646 $ 66,646 7.75% Subordinated Notes due 2045 (1) 96,619 100,059 96,497 95,697 7.875% Subordinated Notes due 2047 (2) 125,864 130,429 — — Total $ 294,713 $ 302,718 $ 163,143 $ 162,343 (1) As of December 31,2017 and 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 December 31, 2017, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $4.1 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 years ended December 31, 2017, 2016, and 2015. The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the year ended December 31, 2017 and 2016: Years Ended (Dollars in thousands) 2017 2016 Beginning balance $ — $ — Total gains (realized / unrealized): Amortization of bond premium and discount, net — 75 Included in realized gains (losses) — 486 Purchases — 27,303 Sales — (27,864 ) Ending balance $ — $ — The investments classified as Level 3 in the above table consist of privately placed debt instruments purchased in 2017 with unobservable inputs. The Company does not have access to daily valuations; therefore, market trades, performance of the underlying assets, and key risks are considered in order to estimate fair values of these middle market corporate debt instruments. In the fourth quarter of 2016, the Company exchanged the debt instruments purchased in previous quarters of 2016, along with cash and equity related to the debt instruments, for a single interest in the Private Middle Market Loan Fund, LP, which is considered a VIE. As this investment is priced using a Net Asset Value (“NAV”) it is excluded from the level 3 investment table above. See Note 4 of the notes to the consolidated financial statements in Item 8 of Part II of this report for further information regarding the Company’s investment in VIEs for the years ended December 31, 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 practical expedient. The following table provides the fair value and future funding commitments related to these investments at December 31, 2017 and 2016. December 31, 2017 December 31, 2016 (Dollars in thousands) Fair Future Funding Fair Value Future Funding Real Estate Fund, LP (1) $ — $ — $ — $ — European Non-Performing 26,262 14,214 32,922 15,714 Private Middle Market Loan Fund, LP (3) 33,760 10,000 33,199 9,054 Distressed Debt Fund, LP (4) 17,798 33,500 — — Total $ 77,820 $ 57,714 $ 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 associated with these limited liability companies or limited partnerships, which is reflected in the consolidated statements of operations, was $4.7 million, $5.2 million, and $2.5 million for the years ended December 31, 2017, 2016, and 2015, 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 terms and conditions sourced from commercial vendors. Bonds with similar characteristics are grouped into specific sectors. Both asset classes use standard inputs and utilize bid price or spread, quotes, benchmark yields, discount rates, market data feeds, and financial statements. • 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 benchmark 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, an integrated evaluation system is used. The pricing models incorporate trades, spreads, benchmark curves, market data feeds, new issue data, and trustee reports. • 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, various external analytical products are utilized and purchased from commercial vendors. The Company performs certain procedures to validate whether the pricing information received from the pricing vendors is reasonable, to ensure that the fair value determination is consistent with accounting guidance, and to ensure that its assets are properly classified in the fair value hierarchy. The Company’s procedures include, but are not limited to: • Reviewing periodic reports provided by the Investment Manager that provides information regarding rating changes and securities placed on watch. This procedure allows the Company to understand why a particular security’s market value may have changed or may potentially change. • Understanding and periodically evaluating the various pricing methods and procedures used by the Company’s pricing vendors to ensure that investments are properly classified within the fair value hierarchy. • On a quarterly basis, the Company corroborates investment security prices received from its pricing vendors by obtaining pricing from a second pricing vendor for a sample of securities. During 2017 and 2016, the Company has not adjusted quotes or prices obtained from the pricing vendors. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets | 8. Goodwill and Intangible Assets Goodwill As a result of acquisitions in 2015 and 2010, the Company has goodwill, within the Personal Lines segment, of $6.5 million as of December 31, 2017 and 2016. The goodwill represents the excess purchase price over the Company’s best estimate of the fair value of the assets acquired. Impairment testing performed in 2017 and 2016 did not result in impairment of the goodwill acquired. Intangible assets The following table presents details of the Company’s intangible assets as of December 31, 2017: (Dollars in thousands) Description Useful Life Cost Accumulated Net Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 2,724 2,576 Agent relationships 10 years 900 270 630 Trade names 7 years 600 257 343 $ 25,800 $ 3,251 $ 22,549 The following table presents details of the Company’s intangible assets as of December 31, 2016: (Dollars in thousands) Description Useful Life Cost Accumulated Net Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 2,369 2,931 Agent relationships 10 years 900 179 721 Trade names 7 years 600 173 427 $ 25,800 $ 2,721 $ 23,079 Amortization related to the Company’s definite lived intangible assets, other than VOBA, was $0.5 million, for each of the years ended December 31, 2017, 2016 and 2015. Amortization related to the Value of Business Added (“VOBA”) was $25.5 million for the year ended December 31, 2015. The Company did not have any amortization related to VOBA during the years ended December 31, 2017 or 2016. The Company expects that amortization expense for the next five years will be as follows: (Dollars in thousands) 2018 $ 529 2019 529 2020 529 2021 529 2022 443 Intangible assets with indefinite lives As of December 31, 2017 and 2016, indefinite lived intangible assets, which are comprised of tradenames, trademarks, and state insurance licenses, were $19.0 million. The Company reviewed internal business unit results, the growth of competitors and the overall property and casualty insurance market for indicators of impairment of its indefinite lived intangible assets. Impairment testing performed in 2017 and 2016 indicated that there was no impairment of these assets. Intangible assets with definite lives As of December 31, 2017 and 2016, definite lived intangible assets, net of accumulated amortization, were $3.5 million and $4.1 million, respectively, and were comprised of customer relationships, agent relationships, and tradenames. The Company reviewed internal business unit results, the growth of competitors and the overall property and casualty insurance market for indicators of impairment of its definite lived intangible assets. There was no impairment of these assets in 2017 or 2016. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance | 9. Reinsurance The Company cedes risk to unrelated reinsurers on a pro rata (“quota share”) and excess of loss basis in the ordinary course of business to limit its net loss exposure on insurance contracts. Reinsurance ceded arrangements do not discharge the Company of primary liability. Moreover, reinsurers may fail to pay the Company due to a lack of reinsurer liquidity, perceived improper underwriting, and losses for risks that are excluded from reinsurance coverage and other similar factors, all of which could adversely affect the Company’s financial results. The Company had the following reinsurance balances as of December 31, 2017 and 2016: (Dollars in thousands) December 31, December 31, Reinsurance receivables, net $ 105,060 $ 143,774 Collateral securing reinsurance receivables (6,584 ) (13,865 ) Reinsurance receivables, net of collateral $ 98,476 $ 129,909 Allowance for uncollectible reinsurance receivables $ 8,040 $ 8,040 Prepaid reinsurance premiums 28,851 42,583 The reinsurance receivables above are net of a purchase accounting adjustment related to discounting acquired loss reserves to their present value and applying a risk margin to the discounted reserves. This adjustment was $1.2 million and $2.0 million at December 31, 2017 and 2016, respectively. As of December 31, 2017, the Company had one aggregate unsecured reinsurance receivable that exceeded 3% of shareholders’ equity from the following reinsurer. Unsecured reinsurance receivables include amounts receivable for paid and unpaid losses and loss adjustment expenses, less amounts secured by collateral. (Dollars in thousands) Reinsurance Receivables A.M. Best Ratings Munich Re America Corporation $ 48,222 A+ The effect of reinsurance on premiums written and earned is as follows: (Dollars in thousands) Written Earned For the year ended December 31, 2017: Direct business $ 433,922 $ 440,109 Reinsurance assumed 82,412 77,811 Reinsurance ceded (1) (66,154 ) (79,886 ) Net premiums $ 450,180 $ 438,034 For the year ended December 31, 2016: Direct business $ 468,046 $ 466,750 Reinsurance assumed 97,799 98,267 Reinsurance ceded (1) (94,905 ) (96,552 ) Net premiums $ 470,940 $ 468,465 For the year ended December 31, 2015: Direct business $ 458,185 $ 452,441 Reinsurance assumed 132,048 144,554 Reinsurance ceded (1) (88,989 ) (92,852 ) Net premiums $ 501,244 $ 504,143 (1) Includes ceded written premiums of ($1.3) million, $35.3 million, and $55.8 million and ceded earned premiums of $13.5 million, $43.2 million and $59.5 million to American Bankers Insurance Company for the years ended December 31, 2017, 2016, and 2015, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes | 10. Income Taxes As of December 31, 2017, 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 (for Luxembourg City), 0.25% to 2.5% in Barbados, and 25% on non-trading The Company’s income before income taxes from its non-U.S. Year Ended December 31, 2017: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 212,386 $ 462,453 $ (158,505 ) $ 516,334 Net premiums written $ 212,432 $ 237,748 $ — $ 450,180 Net premiums earned $ 201,165 $ 236,869 $ — $ 438,034 Net investment income 56,890 24,609 (42,176 ) 39,323 Net realized investment gains (losses) (641 ) 2,217 — 1,576 Other income 216 6,366 — 6,582 Total revenues 257,630 270,061 (42,176 ) 485,515 Losses and Expenses: Net losses and loss adjustment expenses 94,903 174,309 — 269,212 Acquisition costs and other underwriting expenses 89,153 94,580 — 183,733 Corporate and other operating expenses 17,399 8,315 — 25,714 Interest expense 16,740 42,342 (42,176 ) 16,906 Income (loss) before income taxes $ 39,435 $ (49,485 ) $ — $ (10,050 ) Year Ended December 31, 2016: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 201,726 $ 506,061 $ (141,942 ) $ 565,845 Net premiums written $ 201,690 $ 269,250 $ — $ 470,940 Net premiums earned $ 212,325 $ 256,140 $ — $ 468,465 Net investment income 48,807 19,341 (34,165 ) 33,983 Net realized investment gains (losses) (89 ) 21,810 — 21,721 Other income (loss) (224 ) 10,569 — 10,345 Total revenues 260,819 307,860 (34,165 ) 534,514 Losses and Expenses: Net losses and loss adjustment expenses 95,812 168,191 — 264,003 Acquisition costs and other underwriting expenses 94,749 101,901 — 196,650 Corporate and other operating expenses 9,035 8,303 — 17,338 Interest expense 8,312 34,758 (34,165 ) 8,905 Income (loss) before income taxes $ 52,911 $ (5,293 ) $ — $ 47,618 Year Ended December 31, 2015: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 345,392 $ 540,500 $ (295,659 ) $ 590,233 Net premiums written $ 345,342 $ 155,902 $ — $ 501,244 Net premiums earned $ 283,448 $ 220,695 $ — $ 504,143 Net investment income 44,534 18,011 (27,936 ) 34,609 Net realized investment losses (1,039 ) (2,335 ) — (3,374 ) Other income (loss) (93 ) 3,493 — 3,400 Total revenues 326,850 239,864 (27,936 ) 538,778 Losses and Expenses: Net losses and loss adjustment expenses 141,444 133,924 — 275,368 Acquisition costs and other underwriting expenses 122,999 78,304 — 201,303 Corporate and other operating expenses 5,928 18,520 — 24,448 Interest expense 4,492 28,357 (27,936 ) 4,913 Income (loss) before income taxes $ 51,987 $ (19,241 ) $ — $ 32,746 The following table summarizes the components of income tax expense (benefit): Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Current income tax expense (benefit): Foreign $ 392 $ 330 $ 263 U.S. Federal 127 147 (1,785 ) Total current income tax expense (benefit) 519 477 (1,522 ) Deferred income tax expense (benefit): U.S. tax rate change 17,524 — — U.S. Federal (18,542 ) (2,727 ) (7,201 ) Total deferred income tax (benefit) (1,018 ) (2,727 ) (7,201 ) Total income tax (benefit) $ (499 ) $ (2,250 ) $ (8,723 ) The weighted average expected tax provision has been calculated using income (loss) before income taxes in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate: Years Ended December 31, 2017 2016 2015 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average $ (16,928 ) (168.4 %) $ (1,496 ) (3.1 %) $ (6,434 ) (19.6 %) Adjustments: Tax exempt interest (213 ) (2.1 ) (394 ) (0.8 ) (441 ) (1.3 ) Dividend exclusion (571 ) (5.7 ) (617 ) (1.3 ) (784 ) (2.4 ) Tax rate change 17,524 174.4 — — — — Other (311 ) (3.2 ) 257 0.5 (1,064 ) (3.3 ) Effective income tax benefit $ (499 ) (5.0 %) $ (2,250 ) (4.7 %) $ (8,723 ) (26.6 %) The effective income tax benefit rate for 2017 was 5.0%, compared with an effective income tax benefit rate of 4.7% and 26.6% for 2016 and 2015, respectively. The increase in the effective income tax benefit rate in 2017 compared to 2016 is due to incurring a provisional tax expense of $17.5 million related to the reduction in the deferred tax asset as a result of the TCJA enacted on December 22, 2017 which lowered the U.S. tax rate from 35% to 21% offset by $18.4 million tax benefit due to an increase in losses incurred in the Company’s U.S. operations for 2017 compared to 2016. The decrease in the effective income tax benefit rate in 2016 compared to 2015 is primarily due to capital gains in 2016. Financial results for the year ended December 31, 2017 reflect provisional amounts related to the December 22, 2017 enactment of the TCJA. These provisional estimates are based on the Company’s initial analysis and current interpretation of the legislation. Given the complexity of the legislation, anticipated guidance from the U.S. Treasury, and the potential for additional guidance from the Securities and Exchange Commission or the Financial Accounting Standards Board, these estimates may be adjusted during 2018. The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at December 31, 2017 and 2016 are presented below: (Dollars in thousands) 2017 2016 Deferred tax assets: Discounted unpaid losses and loss adjustment expenses $ 3,625 $ 7,015 Unearned premiums 5,318 8,802 Section 163(j) carryforward 7,906 8,075 Alternative minimum tax credit carryover — 10,957 Net operating loss carryforward 16,323 3,205 Partnership K1 basis differences 130 238 Capital gain on derivative instruments 1,673 4,033 Investment impairments 1,742 3,419 Stock options 1,740 2,820 Stat-to-GAAP 1,014 1,337 Intercompany transfers 317 808 Other 3,249 4,986 Total deferred tax assets 43,037 55,695 Deferred tax liabilities: Purchase accounting adjustment for American Reliable 7,723 6,095 Intangible assets 2,394 3,942 Unrealized gain on securities available-for-sale 3,105 352 Investment basis differences 211 484 Deferred acquisition costs 1,921 2,941 Depreciation and amortization 285 119 Other 1,202 805 Total deferred tax liabilities 16,841 14,738 Total net deferred tax assets $ 26,196 $ 40,957 The deferred tax assets and deferred tax liabilities listed in the table above relate to temporary differences between the Company’s accounting and tax carrying values and carryforwards for its companies in the United States. The net deferred tax asset at December 31, 2017 includes a $17.5 million reduction as a result of the TCJA enacted on December 22, 2017. The new tax law reduces the Company’s U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. As a result, the Company reduced its net deferred tax assets at December 31, 2017 and recorded a provisional deferred tax expense of $17.5 million increasing the effective tax rate for the year ending December 31, 2017 by 174.4%. Management believes it is more likely than not that the remaining deferred tax assets will be completely utilized in future years. As a result, the Company has not recorded a valuation allowance at December 31, 2017 and 2016. The Company has an alternative minimum tax (“AMT”) credit carryforward of $11.0 million as of December 31, 2017 and 2016. The TCJA repealed the corporate AMT. The AMT credit carryforward of $11.0 million was reclassed to federal income taxes receivable at December 31, 2017 and will be fully refunded by the end of 2021. The Company has a net operating loss (“NOL”) carryforward of $16.3 million as of December 31, 2017, which begins to expire in 2035 based on when the original NOL was generated. The Company’s NOL carryforward as of December 31, 2016 was $3.2 million. The Company has a Section 163(j) (“163(j)”) carryforward of $7.9 million and $8.1 million as of December 31, 2017 and 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. The Company and some of its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. The Company is no longer subject to U.S. federal tax examinations by tax authorities for tax years before 2014. Should the Company’s subsidiaries that are subject to income taxes imposed by the U.S. authorities pay a dividend to their foreign affiliates, withholding taxes would apply. The Company has not recorded deferred taxes for potential withholding tax on undistributed earnings. The Company believes, although there can be no assurances, that it qualifies for treaty benefits under the Tax Convention with Luxembourg and would be subject to a 5% withholding tax if it were to pay a dividend. Determination of the unrecognized deferred tax liability related to these undistributed earnings is not practicable because of the complexities with its hypothetical calculation. The Company did not pay any dividends from a U.S. subsidiary to a foreign affiliate during 2017, 2016, or 2015. The Company applies a more-likely-than-not The Company classifies all interest and penalties related to uncertain tax positions as income tax expense. The Company did not incur any interest and penalties related to uncertain tax positions during the years ended December 31, 2017, 2016 and 2015. As of December 31, 2017, the Company did not record any liabilities for tax-related |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Liability for Unpaid Losses and Loss Adjustment Expenses | 11. Liability for Unpaid Losses and Loss Adjustment Expenses Consolidated Activity Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Balance at beginning of period $ 651,042 $ 680,047 $ 675,472 Less: Ceded reinsurance receivables 130,439 108,130 123,201 Net balance at beginning of period 520,603 571,917 552,271 Purchased reserves, gross 19,333 2,007 89,489 Less: Purchased reserves ceded (29 ) (45 ) 12,800 Purchase reserves, net of third party reinsurance 19,362 2,052 76,689 Incurred losses and loss adjustment expenses related to: Current year 323,112 321,255 310,066 Prior years (53,900 ) (57,252 ) (34,698 ) Total incurred losses and loss adjustment expenses 269,212 264,003 275,368 Paid losses and loss adjustment expenses related to: Current year 156,325 177,006 164,058 Prior years 115,431 140,363 168,353 Total paid losses and loss adjustment expenses 271,756 317,369 332,411 Net balance at end of period 537,421 520,603 571,917 Plus: Ceded reinsurance receivables 97,243 130,439 108,130 Balance at end of period $ 634,664 $ 651,042 $ 680,047 When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates. During 2017, the Company reduced its prior accident year loss reserves by $53.9 million, which consisted of a $39.4 million decrease related to Commercial Lines, $6.6 million decrease related to Personal Lines, and a $7.9 million decrease related to Reinsurance Operations. The $39.4 million reduction of prior accident year loss reserves related to Commercial Lines primarily consisted of the following: • General Liability: • Professional Liability: • Property: • Workers Compensation: The $6.6 million reduction of prior accident year loss reserves related to Personal Lines primarily consisted of the following: • Property: • General Liability: The $7.9 million reduction of prior accident year loss reserves related to Reinsurance Operations was primarily from the property lines for accident years 2008 through 2016. Ultimate losses were lowered in these accident years based on review of the experience reported from cedants. During 2016, the Company reduced its prior accident year loss reserves by $57.3 million, which consisted of a $43.8 million decrease related to Commercial Lines and a $13.5 million decrease related to Reinsurance Operations. The $43.8 million reduction of prior accident year loss reserves related to Commercial Lines primarily consisted of the following: • Property: non-catastrophe • General Liability: • Marine: The $13.5 million reduction of prior accident year loss reserves related to Reinsurance Operations was primarily from the property lines for accident years 2010 through 2015. Ultimate losses were lowered in these accident years based on reviews of the experience reported from cedants. During 2015, the Company reduced its prior accident year loss reserves by $34.7 million, which consisted of a $25.2 million decrease related to Commercial Lines, a $0.4 million decrease related to Personal Lines, and a $9.1 million decrease related to Reinsurance Operations. The $25.2 million reduction of prior accident year loss reserves related to Commercial Lines primarily consisted of the following: • General Liability: • Professional: • Umbrella The $0.4 million reduction of prior accident year loss reserves related to Personal Lines primarily consisted of lower than expected case incurred emergence in the 2013 accident year. The $9.1 million reduction of prior accident year loss reserves related to Reinsurance Operations was primarily driven by $6.8 million of favorable development in property mainly due to accident years 2011 through 2014 and $2.8 million of favorable development in the marine product mainly due to accident years 2010 and 2011, partially offset by adverse development of $1.0 million in workers compensation mainly due to accident year 2010. Ultimate losses from quota share underwriting years 2013 and prior were booked to the amount reported from cedants and reserve releases on legacy contracts due to better than anticipated case incurred emergence led to the recognition of favorable development. Prior to 2001, the Company underwrote multi-peril business insuring general contractors, developers, and sub-contractors The Company has exposure to asbestos and environmental (“A&E”) claims. The asbestos exposure primarily arises from the sale of product liability insurance, and the environmental exposure arises from the sale of general liability and commercial multi-peril insurance. In establishing the liability for unpaid losses and loss adjustment expenses related to A&E exposures, management considers facts currently known and the current state of the law and coverage litigation. Liabilities are recognized for known claims (including the cost of related litigation) when sufficient information has been developed to indicate the involvement of a specific insurance policy, and management can reasonably estimate its liability. In addition, liabilities have been established to cover additional exposures on both known and unasserted claims. Estimates of the liabilities are reviewed and updated regularly. Case law continues to evolve for such claims, and uncertainty exists about the outcome of coverage litigation and whether past claim experience will be representative of future claim experience. Included in net unpaid losses and loss adjustment expenses as of December 31, 2017, 2016, and 2015 were IBNR reserves of $26.9 million, $26.7 million, and $26.0 million, respectively, and case reserves of approximately $3.3 million, $3.2 million, and $4.5 million, respectively, for known A&E-related The following table shows the Company’s gross reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Gross reserve for A&E losses and loss adjustment expenses — beginning of period $ 51,919 $ 53,824 $ 56,535 Plus: Incurred losses and loss adjustment expenses — case reserves 542 (669 ) 2,666 Plus: Incurred losses and loss adjustment expenses — IBNR 928 2,064 (2,663 ) Less: Payments 1,516 3,300 2,714 Gross reserves for A&E losses and loss adjustment expenses — end of period $ 51,873 $ 51,919 $ 53,824 The following table shows the Company’s net reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Net reserve for A&E losses and loss adjustment expenses — beginning of period $ 29,890 $ 30,529 $ 31,185 Plus: Incurred losses and loss adjustment expenses — case reserves 769 (125 ) 395 Plus: Incurred losses and loss adjustment expenses — IBNR 198 631 (394 ) Less: Payments 733 1,145 657 Net reserves for A&E losses and loss adjustment expenses — end of period $ 30,124 $ 29,890 $ 30,529 Establishing reserves for A&E and other mass tort claims involves more judgment than other types of claims due to, among other things, inconsistent court decisions, an increase in bankruptcy filings as a result of asbestos-related liabilities, and judicial interpretations that often expand theories of recovery and broaden the scope of coverage. The insurance industry continues to receive a substantial number of asbestos-related bodily injury claims, with an increasing focus being directed toward other parties, including installers of products containing asbestos rather than against asbestos manufacturers. This shift has resulted in significant insurance coverage litigation implicating applicable coverage defenses or determinations, if any, including but not limited to, determinations as to whether or not an asbestos-related bodily injury claim is subject to aggregate limits of liability found in most comprehensive general liability policies. As of December 31, 2017, 2016, and 2015, the survival ratio on a gross basis for the Company’s open A&E claims was 20.7 years, 13.8 years, and 15.0 years, respectively. As of December 31, 2017, 2016, and 2015, the survival ratio on a net basis for the Company’s open A&E claims was 35.6 years, 19.3 years, and 16.8 years, respectively. The survival ratio, which is the ratio of gross or net reserves to the 3-year Line of Business Categories The following is information, presented by lines of business with similar characteristics including similar payout patterns, about incurred and paid claims development as of December 31, 2017, net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported The information about incurred and paid claims development for the years ended December 31, 2008 to 2015, is presented as required supplementary unaudited information. Commercial Lines Property and Casualty Methodologies Commercial Lines internal actuarial reserve reviews were completed for loss and allocated loss adjustment expenses (“ALAE”) separately for property excluding catastrophe experience, property catastrophes, and casualty reserve categories. The internal actuarial reserve reviews were completed with data through December, 2017. Actuarial methodologies, such as the Loss Development and Bornhuetter-Ferguson methods, were employed to develop estimates of ultimate Loss & ALAE for most reserve categories. Additional actuarial methodologies were employed to develop estimates of ultimate Loss & ALAE for mass tort and constructions defect reserve categories due to the unique characteristics of the exposures involved. Management’s ultimate selections were based on the internal actuarial review and a third party actuarial review completed during the 4 th Commercial Lines cumulative claim frequency has been calculated at the claim level and includes claims closed without payment. Commercial Lines — Property (Dollars in thousands) Incurred Claims and Allocated Net of Reinsurance For the Years As of December 31, 2017 Accident Year 2015 2016 2017 IBNR (1) Cumulative (unaudited) 2015 $ 63,574 $ 64,722 $ 62,575 $ 2,868 4,649 2016 61,990 61,014 5,097 4,104 2017 44,785 8,583 2,778 Total $ 168,374 (1) Incurred-but-not-reported Commercial Lines — Property (Dollars in thousands) Cumulative Paid Claims and Allocated Accident Year 2015 2016 2017 (unaudited) 2015 $ 41,942 $ 57,653 $ 58,926 2016 39,643 51,967 2017 28,541 Total 139,434 All outstanding liabilities before 2015, net of reinsurance 7,635 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 36,575 The following is required supplementary information about average historical claims duration as of December 31, 2017: Average Annual Percentage Year 1 2 3 Commercial Lines — Property 65.2 % 22.7 % 2.0 % Commercial Lines — Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2008 $ 138,417 $ 170,855 $ 160,325 $ 149,564 $ 148,019 $ 146,142 $ 138,558 $ 134,514 $ 129,894 $ 126,924 $ 7,096 6,191 2009 93,748 96,956 104,518 104,803 104,392 96,206 94,016 91,297 88,384 7,444 3,896 2010 79,188 101,830 102,252 101,113 94,484 91,368 84,681 82,824 10,785 3,503 2011 115,441 117,602 117,288 115,193 108,720 96,361 84,269 5,701 3,741 2012 61,340 65,911 65,637 63,359 55,137 52,504 11,346 2,379 2013 63,807 68,089 67,702 66,301 64,877 11,435 2,519 2014 61,325 60,227 58,042 56,837 15,139 2,307 2015 57,262 56,620 57,775 17,359 2,010 2016 54,130 53,776 25,895 1,750 2017 54,338 37,994 1,283 Total $ 722,508 (1) Incurred-but-not-reported Commercial Lines — Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2008 $ 7,844 $ 34,172 $ 65,700 $ 86,889 $ 100,369 $ 110,145 $ 114,546 $ 116,246 $ 117,797 $ 118,254 2009 5,564 19,154 37,653 53,738 65,721 71,108 75,181 77,771 79,896 2010 5,503 19,926 34,659 50,520 58,913 65,377 67,277 69,615 2011 5,451 21,325 41,282 56,562 64,722 72,087 74,839 2012 3,500 11,884 22,456 31,231 36,360 39,596 2013 6,400 17,881 29,510 38,438 46,272 2014 3,968 15,690 26,268 33,697 2015 3,336 14,584 25,147 2016 4,135 14,027 2017 4,914 Total 506,257 All outstanding liabilities before 2008, net of reinsurance 64,830 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 281,081 The following is required supplementary information about average historical claims duration as of December 31, 2017: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 8 9 10 Commercial Lines — Casualty 7.2 % 18.3 % 20.3 % 16.5 % 11.0 % 7.3 % 3.4 % 2.4 % 1.8 % 0.4 % Personal Lines Property and Casualty Methodologies Personal Lines internal actuarial reserve reviews were completed for loss and allocated loss adjustment expenses (ALAE) separately for property excluding catastrophe experience, property catastrophes, and casualty reserve categories. The internal actuarial reserve reviews were completed with data through December, 2017. Actuarial methodologies, such as the Loss Development and Bornhuetter-Ferguson methods, were employed to develop estimates of ultimate Loss & ALAE. Management’s ultimate selections were based on the internal actuarial review and a third party actuarial review completed during the 4 th Personal lines are primarily comprised of business acquired in the purchase of American Reliable, which occurred on January 1, 2015. The acquisition included the purchase of the business of the legal entity as well as additional books of business written by other Assurant entities. In addition, ceding arrangements subsequent to the date of the acquisition are not consistent with years prior to the acquisition. As a result, it is not practical, nor would it be consistent, to include information for years prior to 2015 in the development tables for Personal Lines. Personal Lines cumulative claim frequency has been calculated at the claim level and includes claims closed without payment. Personal Lines — Property (Dollars in thousands) Incurred Claims and Allocated Claims As of December 31, 2017 Accident Year 2016 2017 IBNR (1) Cumulative 2016 $ 146,571 $ 144,787 5,418 17,356 2017 148,016 15,743 16,384 Total $ 292,803 (1) Incurred-but-not-reported Personal Lines — Property (Dollars in thousands) Cumulative Paid Claims For the Years Ended Accident Year 2016 2017 2016 $ 121,899 $ 138,289 2017 114,360 Total 252,649 All outstanding liabilities before 2016, net of reinsurance 4,206 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 44,360 The following is required supplementary information about average historical claims duration as of December 31, 2017. Average Annual Percentage Payout of Year 1 2 Personal Lines — Property 80.7 % 11.3 % Personal Lines — Casualty (Dollars in thousands) Incurred Claims and Allocated Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2017 Accident Year 2015 2016 2017 IBNR (1) Cumulative (unaudited) 2015 $ 18,930 $ 20,506 $ 21,850 $ 5,059 1,317 2016 21,476 21,073 11,345 1,370 2017 19,999 15,334 878 Total $ 62,922 (1) Incurred-but-not-reported Personal Lines — Casualty (Dollars in thousands) Cumulative Paid Claims and For the Years Ended December 31, Accident Year 2015 2016 2017 (unaudited) 2015 $ 3,439 $ 8,757 $ 12,926 2016 3,507 6,885 2017 2,132 Total 21,943 All outstanding liabilities before 2015, net of reinsurance 11,672 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 52,651 The following is required supplementary information about average historical claims duration as of December 31, 2017: Average Annual Percentage Payout of Year 1 2 3 Personal Lines — Casualty 14.3 % 20.2 % 19.1 % Reinsurance Lines Property & Casualty Methodologies Reinsurance Operations internal reserve reviews were completed for loss and allocated loss adjustment expenses (ALAE) combined for run off treaties and the current book of business. The current book of business is constituted of professional liability portfolios and retrocessions from Bermuda based companies for property catastrophe, marine business, and mortgage insurance. The reserve reviews were completed based on the latest data reported from the cedants which is typically on a quarter lag. Paid loss, ALAE and Case reserves, shown in the reinsurance category tables below, which are originally based in a foreign currency, are remeasured in U.S. dollars based on the Foreign Exchange (FX) rate at the date the cedant’s report. Management’s ultimate selections were based on a review of ultimates reported from the cedants, including loss emergence during the reporting period, and a third party actuarial review completed during the 4 th The Company does not have direct access to claim frequency information underlying certain reinsurance contracts. As a result, the Company does not believe providing claim frequency information is practicable. Reinsurance Lines — Property (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2011 $ 30,963 $ 28,547 $ 26,916 $ 25,994 $ 24,994 $ 24,912 $ 24,786 $ 1,028 — 2012 10,388 10,578 9,279 8,579 8,497 8,397 539 — 2013 15,153 9,948 8,197 6,698 6,345 753 — 2014 21,787 18,861 14,139 13,590 1,264 — 2015 19,877 16,738 12,526 2,977 — 2016 23,646 22,485 10,433 — 2017 43,782 26,239 — Total $ 131,911 (1) Incurred-but-not-reported Reinsurance Lines — Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2011 $ 12,044 $ 19,274 $ 20,698 $ 22,060 $ 22,426 $ 22,771 $ 23,096 2012 1,127 5,481 7,221 7,648 7,527 7,584 2013 723 4,008 5,835 5,111 5,255 2014 2,243 9,035 10,460 11,182 2015 742 5,163 6,768 2016 2,071 5,704 2017 2,152 Total 61,741 All outstanding liabilities before 2011, net of reinsurance 322 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 70,492 The following is required supplementary information about average historical claims duration as of December 31, 2017: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 Reinsurance Lines — Property 15.7 % 39.0 % 15.7 % 1.1 % 0.8 % 1.0 % 1.3 % Reinsurance Lines — Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2008 $ 8,906 $ 8,758 $ 8,988 $ 8,997 $ 10,167 $ 10,340 $ 10,340 $ 9,435 $ 9,835 $ 9,768 $ 291 — 2009 20,706 23,818 25,444 30,533 30,850 31,340 31,419 31,453 31,514 386 — 2010 41,831 53,279 57,916 62,628 61,062 61,792 60,701 60,573 2,015 — 2011 45,726 48,846 44,692 47,980 46,510 43,657 42,968 2,122 — 2012 15,865 15,624 17,123 17,579 17,360 17,348 1,113 — 2013 1,224 1,262 1,172 1,013 974 870 — 2014 1,988 2,095 2,060 1,957 1,954 — 2015 2,908 2,911 2,780 2,779 — 2016 3,627 3,627 3,627 — 2017 4,358 4,358 — Total $ 175,867 (1) Incurred-but-not-reported Reinsurance Lines — Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2008 $ — $ 627 $ 1,955 $ 5,149 $ 5,648 $ 6,832 $ 8,713 $ 8,875 $ 8,919 $ 8,981 2009 1,986 9,759 11,064 12,597 13,652 15,104 30,141 31,019 31,128 2010 10,185 21,447 30,754 36,090 39,123 55,315 55,848 56,960 2011 7,968 20,072 28,495 36,020 38,907 39,815 40,079 2012 5,312 9,435 11,658 15,534 15,696 15,790 2013 123 50 62 65 65 2014 88 47 50 1 2015 107 128 1 2016 — — 2017 — Total 153,005 All outstanding liabilities before 2008, net of reinsurance 1,210 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 24,072 The following is required supplementary information about average historical claims duration as of December 31, 2017: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 8 9 10 Reinsurance Lines — Casualty 9.3 % 10.3 % 7.8 % 12.0 % 3.5 % 9.2 % 17.1 % 2.1 % 0.4 % 0.6 % The reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and loss adjustment expenses in the consolidated balance sheets as of December 31, 2017 is as follows: Net outstanding liabilities Commercial Lines — Property $ 36,575 Commercial Lines — Casualty 281,081 Personal Lines — Property 44,360 Personal Lines — Casualty 52,651 Reinsurance Lines — Property 70,492 Reinsurance Lines — Casualty 24,072 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance 509,231 Reinsurance recoverable on unpaid claims Commercial Lines — Property 8,508 Commercial Lines — Casualty 68,786 Personal Lines — Property 10,608 Personal Lines — Casualty 7,718 Reinsurance Lines — Property — Reinsurance Lines — Casualty 71 Total reinsurance recoverable on unpaid claims 95,691 Other outstanding liabilities Commercial Lines Ceded Allowance 8,040 Unallocated claims adjustment expenses 16,930 Purchase accounting adjustment (1,200 ) Loss Clearing 322 Personal Lines Fronted business ceded to Assurant 2,752 Unallocated claims adjustment expenses 2,190 Loss Clearing (25 ) Reinsurance Lines Unallocated claims adjustment expenses 987 Other (254 ) Total other outstanding liabilities 29,742 Total gross liability for unpaid losses and loss adjustment expenses $ 634,664 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt | 12. Debt The Company’s outstanding debt consisted of the following at December 31, 2017 and 2016: December 31, (Dollars in thousands) 2017 2016 Margin Borrowing Facility $ 72,230 $ 66,646 7.75% Subordinated Notes due 2045 96,619 96,497 7.875% Subordinated Notes due 2047 125,864 — Total $ 294,713 $ 163,143 Margin Borrowing Facility The Company has available a margin borrowing facility. At December 31, 2017, the borrowing rate for this facility was tied to the Fed Funds Effective rate and was approximately 1.6%. At December 31, 2016, the borrowing rate for this facility was tied to LIBOR and was approximately 1.6%. This facility is due on demand. The borrowings are subject to maintenance margin, which is a minimum account balance that must be maintained. A decline in market conditions could require an additional deposit of collateral. As of December 31, 2017, approximately $88.0 million in securities were deposited as collateral to support borrowings. The amount borrowed against the margin account may fluctuate as routine investment transactions, such as dividends received, investment income received, maturities and pay-downs, The Company recorded interest expense related to the Margin Borrowing Facility of approximately $1.0 million, $1.0 million, and $1.9 million for the years ended December 31, 2017, 2016, and 2015, respectively. 7.75% Subordinated Notes due 2045 On August 12, 2015, the Company issued $100.0 million in aggregate principal amount of its 2045 Subordinated Notes through an underwritten public offering (the “2045 Notes”). The 2045 Notes bear interest at an annual rate equal to 7.75%, payable quarterly in arrears on February 15, May 15, August 15, and November 15 of each year, commencing November 15, 2015. The 2045 Notes mature on August 15, 2045. The Company has the right to redeem the 2045 Notes in $25 increments, in whole or in part, on and after August 15, 2020, or on any interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the 2045 Notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption. The 2045 Notes are subordinated unsecured obligations and rank (i) senior to the Company’s existing and future capital stock, (ii) senior in right of payment to future junior subordinated debt, (iii) equally in right of payment with any unsecured, subordinated debt that the Company incurs in the future that ranks equally with the 2045 Notes, and (iv) subordinate in right of payment to any of the Company’s existing and future senior debt. In addition, the 2045 Notes are structurally subordinated to all existing and future indebtedness, liabilities and other obligations of the Company’s subsidiaries. The 2045 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 2045 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 2045 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 2045 Notes. There is no right of acceleration of maturity of the 2045 Notes in the case of default in the payment of principal, premium, if any, or interest on, the 2045 Notes or in the performance of any other obligation of the Company under the 2045 Notes or if the Company defaults on any other debt securities. Holders may accelerate payment of indebtedness on the 2045 Notes only upon the Company’s bankruptcy, insolvency or reorganization. The Company incurred $3.7 million in deferred issuance costs associated with the 2045 Notes, which is being amortized over the term of the 2045 Notes. Interest expense, including amortization of deferred issuance costs, recognized on the 2045 Notes was $7.9 million, $7.9 million, and $3.0 million for the years ended December 31, 2017, 2016, and 2015, respectively. 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 2045 Notes 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 facility. 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 $8.0 million for the year ended December 31, 2017. The following table represents the amounts recorded for the subordinated notes as of December 31, 2017 and 2016: December 31, 2017 Outstanding Unamortized Net 7.75% Subordinated Notes due 2045 $ 100,000 $ (3,381 ) $ 96,619 7.875% Subordinated Notes due 2047 130,000 (4,136 ) 125,864 $ 230,000 $ (7,517 ) $ 222,483 December 31, 2016 Outstanding Unamortized Net 7.75% Subordinated Notes due 2045 $ 100,000 $ (3,503 ) $ 96,497 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Shareholders' Equity | 13. Shareholders’ Equity On November 7, 2016, Global Indemnity plc, an Irish public limited company, and Global Indemnity Limited, a Cayman Islands exempted company, completed the previously disclosed scheme of arrangement under Irish law (the “Scheme of Arrangement”) that effected a transaction (the “Redomestication”) that resulted in the shareholders of Global Indemnity plc becoming shareholders of Global Indemnity Limited, and Global Indemnity plc becoming a subsidiary of Global Indemnity Limited until it was liquidated in 2017. In accordance with the terms of the Scheme of Arrangement, the following steps occurred effectively simultaneously on November 7, 2016: 1. 13,463,864 shares of Global Indemnity plc A ordinary shares, par value $0.0001 per share, which represent all of the existing A ordinary shares excluding the treasury shares held by Global Indemnity plc and A shares held by Global Indemnity Limited, and 4,133,366 Global Indemnity plc B ordinary shares, par value $0.0001 per share, (together, the “Global Indemnity plc ordinary shares”) were cancelled. The treasury shares of Global Indemnity plc were not subject to the scheme. The carrying value of the Global Indemnity plc treasury shares, $103.2 million, were offset against the Additional Paid-in 2. the reserves created on the cancellation of the Global Indemnity plc ordinary shares were used to issue 17,597,230 Global Indemnity plc ordinary shares to Global Indemnity Limited; and 3. in return for such issuance of new Global Indemnity plc ordinary shares to Global Indemnity Limited, Global Indemnity Limited issued 13,463,864 A ordinary shares, par value $0.0001 per share, and 4,133,366 Global Indemnity Limited B ordinary shares, par value $0.0001 per share (together the “Global Indemnity Limited ordinary shares”), to the former stockholders of Global Indemnity plc. Each shareholder received one Global Indemnity Limited A ordinary share for each Global Indemnity plc A ordinary share owned by such shareholder prior to the Scheme of Arrangement and one Global Indemnity Limited B ordinary share for each Global Indemnity plc B ordinary share owned by such shareholder prior to the Scheme of Arrangement. Prior to the Redomestication, the Global Indemnity plc A ordinary shares were listed on the Nasdaq Global Select Market (“Nasdaq”) under the symbol “GBLI” and registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In connection with the Redomestication, Global Indemnity plc requested that Nasdaq file with the U.S. Securities and Exchange Commission (the “SEC”) an application to strike the Global Indemnity plc A ordinary shares from listing on Nasdaq and the Global Indemnity plc A ordinary shares from registration under the Exchange Act. The Global Indemnity Limited ordinary shares are deemed registered under the Exchange Act. The Global Indemnity Limited A ordinary shares began trading on Nasdaq under the symbol “GBLI,” the same symbol under which the Global Indemnity plc ordinary shares previously traded, at the opening of Nasdaq on November 7, 2016. Dividend Restriction The ability of Global Indemnity Limited to pay dividends is subject to Cayman Island regulations. Under Cayman Islands law, dividends and distributions may only be made from distributable reserves or from amounts standing to the credit of the Company’s share premium account, together with any reserve established by the revaluation of the Company’s asset, subject to the ability of the Company to meet its obligations in the ordinary course as they fall due. Distributable reserves represents the accumulated realized profits and losses of Global Indemnity Limited on a standalone basis, which is $275.8 million as of December 31, 2017. Share premium represents the excess of the consideration paid upon the initial issuance of any share over the par value. As of December 31, 2017, share premium was $434.7 million. Reserves established by the revaluation of the Company’s asset were $9.0 million as of December 31, 2017. As of December 31, 2017, the maximum dividends and distributions allowable under Cayman Island law is $719.6 million. Since the Company is a holding company and has no direct operations, its ability to pay dividends depends, in part, on the ability of its subsidiaries to pay dividends. Global Indemnity Reinsurance and the U.S. insurance subsidiaries are subject to significant regulatory restrictions limiting their ability to declare and pay dividends. See Note 19 for additional information regarding dividend limitations imposed on Global Indemnity Reinsurance and the U.S. insurance subsidiaries. Dividend Program During the fourth quarter of 2017, Global Indemnity announced the adoption of a dividend program. Although subject to the absolute discretion of the Board of Directors and factors, conditions, and prospects as such may exist from time to time when the Board of Directors considers the advisability of declaring a quarterly dividend, the Company currently anticipates an initial dividend rate of $0.25 per share per quarter ($1.00 per share per year). Repurchases and Redemptions of the Company’s Ordinary Shares The Company allows employees to surrender A ordinary shares as payment for the tax liability incurred upon the vesting of restricted stock that was issued under the Company’s share incentive plan in effect at the time of issuance. During 2017, 2016, and 2015, the Company purchased an aggregate of 29,551, 28,099 and 11,895, respectively, of surrendered A ordinary shares from its employees for $1.2 million, $0.8 million and $0.3 million, respectively. All shares purchased from employees by the Company are held as treasury stock and recorded at cost until formally retired by the company. In 2015, the Company entered into a redemption agreement with certain affiliates of Fox Paine & Company to redeem 8,260,870 of its ordinary shares. In conjunction with the 2015 redemption, the Company acquired rights, expiring year end 2019, to redeem an additional 3,397,031 ordinary shares for $78.1 million, which amount was subject to an annual 3% increase. On December 29, 2017, Global Indemnity acquired 3,397,031 of its A ordinary shares for approximately $83.0 million in the aggregate (approximately $24.44 per share) from former investors in vehicles managed by Fox Paine & Company, LLC. See Note 12 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2015 Annual Report on Form 10-K The following table provides information with respect to the A ordinary shares that were surrendered, repurchased, or redeemed in 2017: Period (1) Total Number of Shares Purchased or Average Price Paid Per Share Total Number of Shares Plan or Program Approximate Dollar A ordinary shares: January 1-31, 13,656 (2) $ 38.21 — — February 1-28, 15,309 (2) $ 40.18 — — May 1-31, 586 (2) $ 38.49 — — December 1-31, 2017 3,397,031 $ 24.44 Total 3,426,582 $ 24.57 — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. There were no B ordinary shares that were surrendered or repurchased in 2017. The following table provides information with respect to the A ordinary shares that were surrendered or repurchased in 2016: Period (1) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Plan or Program Approximate Dollar A ordinary shares: January 1-31, 12,410 (2) $ 29.02 — — February 1-29, 15,093 (2) $ 28.25 — — May 1-31, 596 (2) $ 30.56 — — Total 28,099 $ 28.64 — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. There were no B ordinary shares that were surrendered or repurchased in 2016. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions | 14. Related Party Transactions Fox Paine & Company As of December 31, 2017, Fox Paine & Company beneficially owned shares having approximately 83% of the Company’s total outstanding voting power. Fox Paine & Company has the right to appoint a number of the Company’s Directors equal in aggregate to the pro rata percentage of the voting shares of the Company beneficially held by Fox Paine & Company for so long as Fox Paine & Company holds an aggregate of 25% or more of the voting power in the Company. Fox Paine & Company controls the election of all of the Company’s Directors due to its controlling share ownership. The Company’s Chairman is a member of Fox Paine & Company. The Company relies on Fox Paine & Company to provide management services and other services related to the operations of the Company. Starting in 2014, this fee is adjusted annually to reflect the percentage change in the CPI-U. During 2015, the Company reimbursed Fox Paine & Company $1.2 million for expenses related to the 2015 redemption of the Company’s ordinary shares. See Note 12 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2015 Annual Report on Form 10-K 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. In connection with the acquisition of American Reliable, the Company agreed to pay to Fox Paine & Company an investment banking fee of 3% of the amount paid plus the additional capital required to operate American Reliable on a standalone basis and a $1.5 million investment advisory fee, which in the aggregate, totaled $6.5 million. This amount was included in corporate and other operating expenses on the Company’s Consolidated Statements of Operations during the year ended December 31, 2015. As payment for these fees, 267,702 A ordinary shares of Global Indemnity were issued under the Global Indemnity plc Share Incentive Plan in May, 2015. These shares cannot be sold until the earlier of five years after January 1, 2015 or a change of control. See Note 16 for additional information on the Company’s share incentive plans including the Global Indemnity plc Share Incentive Plan which was replaced with the Global Indemnity Limited Share Incentive Plan. Cozen O’Connor The Company incurred $0.7 million for legal services rendered by Cozen O’Connor during the year ended December 31, 2015. Stephen A. Cozen, the chairman of Cozen O’Connor, was a member of the Company’s Board of Directors until he resigned on December 31, 2015. Crystal & Company During each of the years ended December 31, 2016 and 2015, the Company incurred $0.2 million in brokerage fees to Crystal & Company, an insurance broker. James W. Crystal, the chairman and chief executive officer of Crystal & Company, was a member of the Company’s Board of Directors until he resigned on July 24, 2016. Hiscox Insurance Company (Bermuda) Ltd. Global Indemnity Reinsurance is a participant in two reinsurance agreements with Hiscox Insurance Company (Bermuda) Ltd. (“Hiscox Bermuda”) while Steve Green, the President of Global Indemnity Reinsurance, was a member of Hiscox Bermuda’s Board of Directors. Steve Green was a member of the Hiscox Bermuda’s Board of Directors until May, 2014. The Company estimated that the following earned premium and incurred losses related to these agreements have been assumed by Global Indemnity Reinsurance from Hiscox Bermuda: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Assumed earned premium $ 4 $ 27 $ 2,266 Assumed losses and loss adjustment expenses (130 ) (527 ) 509 Net payable balances due from Global Indemnity Reinsurance under this agreement are as follows: As of December 31, (Dollars in thousands) 2017 2016 Net payable balance $ (10 ) $ (107 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies | 15. 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 December 31, 2017, the Company has funded $30.0 million of this commitment leaving $10.0 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 December 31, 2017, the Company has funded $16.5 million of this commitment leaving $33.5 million as unfunded. Lease Commitments Total rental expense under operating leases for the years ended December 31, 2017, 2016, and 2015 was $3.5 million, $3.7 million, and $3.5 million, respectively. Rent expense was net of sublease income of $0.02 million and $0.07 million for the years ended December 31, 2016 and 2015, respectively. There was no sublease income for the year ended December 31, 2017. At December 31, 2017, future minimum cash payments under non-cancelable (Dollars in thousands) 2018 $ 3,147 2019 2,192 2020 127 Total $ 5,466 Other Commitments The Company is party to a Management Agreement, as amended, with Fox Paine & Company, whereby in connection with certain management services provided to it by Fox Paine & Company, the Company agreed to pay an annual management fee to Fox Paine & Company. See Note 14 above for additional information pertaining to this management agreement. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Share-Based Compensation Plans | 16. 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. The fair value method of accounting recognizes share-based compensation to employees and non-employee For the purpose of determining the fair value of stock option awards, the Company uses the Black-Scholes option-pricing model. An estimation of forfeitures is required when recognizing compensation expense which is then adjusted over the requisite service period should actual forfeitures differ from such estimates. Changes in estimated forfeitures are recognized through a cumulative adjustment to compensation in the period of change. Prior to January 1, 2017, the prescribed accounting guidance required tax benefits relating to excess stock-based compensation deductions to be prospectively presented in the consolidated statements of cash flows as financing cash inflows. The tax benefit resulting from stock-based compensation deductions in excess of amounts reported for financial reporting purposes was $0.1 million and $0.05 million for the years ended December 31, 2016 and 2015, respectively. Share Incentive Plan On June 11, 2014, the Company’s Shareholders approved the Global Indemnity plc Share Incentive Plan (the “Plan”). The previous share incentive plan, which became effective in 2003, expired per its terms on September 5, 2013. As a result of the redomestication, the Global Indemnity plc Share Incentive Plan’s sponsorship and existing obligations with respect to awards granted and outstanding were assumed by the Company and the Global Indemnity plc Share Incentive Plan was replaced with the Global Indemnity Limited Share Incentive Plan (collectively, the “Plan”). The purpose of the Plan is to give the Company a competitive advantage in attracting and retaining officers, employees, consultants and non-employee Options Award activity for stock options granted under the Plan and the weighted average exercise price per share are summarized as follows: Time-Based Options Performance- Based Options Total Weighted Average Exercise Price Per Share Options outstanding at January 1, 2015 612,500 — 612,500 $ 25.38 Options issued — 200,000 200,000 $ 28.37 Options forfeited — — — — Options exercised — — — — Options expired (12,500 ) — (12,500 ) $ 37.70 Options purchased by the Company — — — — Options outstanding at December 31, 2015 600,000 200,000 800,000 $ 25.94 Options issued — — — — Options forfeited — (200,000 ) (200,000 ) $ 28.37 Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2016 600,000 — 600,000 $ 25.13 Options issued — — — — Options forfeited — — — — Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2017 600,000 — 600,000 25.13 Options exercisable at December 31, 2017 300,000 — 300,000 17.87 Of the options outstanding, there are 300,000 options that are not yet exercisable. Vesting of the options is dependent on meeting or exceeding underwriting targets. 60,000 options are related to the 2015 accident year. These options are subject to remeasurement of 2015 accident year results on December 31, 2018. As of December 31, 2017, the written premium target was not met but the targeted 2015 accident year results were met. 90,000 options are related to the 2016 accident year and are subject to remeasurement of accident year results on December 31, 2019. 150,000 options are related to the 2017 accident year and are subject to remeasurement of accident year results on December 31, 2020. As of December 31, 2017 the targeted accident year results for 2016 and 2017 were not met. During the year ended December 31, 2015, the Company awarded 200,000 options with a strike price of $28.37 which were subsequently forfeited during the year ended December 31, 2016. There were no stock options issued in 2016 or 2017. The Company recorded ($0.4) million, $0.3 million, and $0.4 million of compensation expense for stock options outstanding under the Plan during the years ended December 31, 2017, 2016, and 2015, respectively. The Company did not receive any proceeds from the exercise of options during 2017, 2016 or 2015 under the Plan. All options outstanding are fully amortized as of December 31, 2017. Option intrinsic values, which are the differences between the fair value of $42.02 at December 31, 2017 and the strike price of the option, are as follows: Number of Shares Weighted Average Strike Price Intrinsic Value Outstanding 600,000 25.13 10.1 million Exercisable 300,000 17.87 (1) 7.2 million Exercised (1) — — — (1) The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. The options exercisable at December 31, 2017 include the following: Option Price Number of options exercisable $17.87 300,000 Options exercisable at December 31, 2017 300,000 There were no options granted under the Plan in 2017 or 2016. The weighted average fair value of options granted under the Plan was $8.69 in 2015 using a Black-Scholes option-pricing model and the following weighted average assumptions. 2015 Dividend yield 0.0% Expected volatility 31.59% Risk-free interest rate 1.7% Expected option life 5.0 years The following tables summarize the range of exercise prices of options outstanding at December 31, 2017, 2016, and 2015: Ranges of Exercise Prices Outstanding at December 31, 2017 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $17.87 3.7 years $30.00 — $37.70 300,000 (1) $32.38 6.1 years Total 600,000 (1) — the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. Ranges of Exercise Prices Outstanding at December 31, 2016 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $17.87 4.7 years $30.00 — $37.70 300,000 (1) $32.38 7.1 years Total 600,000 (1) — the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. Ranges of Exercise Prices Outstanding at December 31, 2015 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $17.87 5.7 years $20.00 — $29.99 200,000 $28.37 9.0 years $30.00 — $37.70 300,000 (1) $32.38 8.1 years Total 800,000 (1) — the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. Restricted Shares In addition to stock option grants, the Plan also provides for the granting of restricted shares to employees and non-employee non-vested The following table summarizes the restricted stock grants since the 2003 inception of the original share incentive plan. Restricted Stock Awards Year Employees Directors Total Inception through 2014 806,762 441,888 1,248,650 2015 138,507 36,321 174,828 2016 121,346 35,185 156,531 2017 22,503 27,121 49,624 1,089,118 540,515 1,629,633 The following table summarizes the non-vested Number of Shares Weighted Average Price Per Share Non-vested 172,275 $ 23.76 Shares issued 174,828 $ 28.24 Shares vested (70,503 ) $ 25.31 Shares forfeited (16,695 ) $ 24.11 Non-vested 259,905 $ 26.33 Shares issued 156,531 $ 29.44 Shares vested (111,205 ) $ 26.11 Shares forfeited (5,633 ) $ 27.25 Non-vested 299,598 $ 28.02 Shares issued 49,624 $ 39.42 Shares vested (116,111 ) $ 29.75 Shares forfeited (20,299 ) $ 28.63 Non-vested 212,812 $ 29.67 Based on the terms of the Restricted Share grants, all forfeited shares revert back to the Company. During 2015, the Company granted an aggregate of 138,507 A ordinary shares to key employees at a weighted average grant date fair value of $28.37 per share under the Plan. Of the shares granted in 2015, 10,574 were granted to the Company’s Chief Executive Officer and vest 33 1/3% on each subsequent anniversary date of the grant for a period of three years subject to an accident year true-up • 16.5% vested on January 1, 2016, 16.5% vested on January 1, 2017, and 17.0% of the granted stock will vest on January 1, 2018. • Subject to Board approval, 50% of granted stock vests 100%, no later than March 15, 2018, following a re-measurement During 2015, the Company granted 36,321 A ordinary shares, at a weighted average grant date fair value of $27.73 per share, to non-employee During 2016, the Company granted an aggregate of 121,346 A ordinary shares to key employees at a weighted average grant date fair value of $28.97 per share under the Plan. Of the shares granted in 2016, 11,199 were granted to the Company’s Chief Executive Officer and vest 33 1/3% on each subsequent anniversary date of the grant for a period of three years subject to 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 2016, the Company granted 35,185 A ordinary shares, at a weighted average grant date fair value of $31.05 per share, to non-employee During 2017, the Company granted an aggregate of 22,503 A ordinary shares to key employees at a weighted average grant date fair value of $38.21 per share 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 2017, the Company granted 27,121 A ordinary shares, at a weighted average grant date fair value of $40.42 per share, to non-employee All of the shares granted to non-employee Chief Executive Officer Effective September 19, 2011, Cynthia Y. Valko was hired as the Company’s Chief Executive Officer. Ms. Valko’s terms of employment included two equity components including the granting of 300,000 stock options with a strike price equal to the closing price of the Company’s shares on the trading day preceding the start date, or $17.87 per share, and an annual bonus opportunity of which 50% shall be paid in restricted shares based on the market value of the Company’s shares as of December 31 of the subject bonus year. The stock options vested 33 1/3% on December 31, 2012, 2013, and 2014. The restricted shares vest 33 1/3% on each anniversary of the subject bonus year. All equity components based on performance are subject to accident year true-up In 2014, Ms. Valko was awarded an additional 300,000 stock options. The stock options which vested as follows: 20% vested on December 31, 2015, 30% vested on December 31, 2016, and the remaining 50% vested on December 31, 2017 were based on achieving underwriting income, premium volume, and underwriting profitability targets, subject to an accident year true up on the 3rd anniversary of each such year. Vesting of the stock options is subject to continued employment. The exercise price applicable to the Stock Options is $25.00 subject to adjustment based on the Company’s average year-end |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2017 | |
401(k) Plan | 17. 401(k) Plan The Company maintains a 401(k) defined contribution plan that covers all eligible U.S. employees. Under this plan, the Company matches 100% of the first 6% contributed by an employee. Vesting on contributions made by the Company is immediate. Total expenses for the plan were $1.9 million, $1.9 million, and $2.0 million for the years ended December 31, 2017, 2016, and 2015, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share | 18. Earnings Per Share Earnings per share have been computed using the weighted average number of ordinary shares and ordinary share equivalents outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share. Years Ended December 31, (Dollars in thousands, except share and per share 2017 2016 2015 Net income (loss) $ (9,551 ) $ 49,868 $ 41,469 Basic earnings per share: Weighted average shares outstanding — basic 17,308,663 17,246,717 24,253,657 Net income (loss) per share $ (0.55 ) $ 2.89 $ 1.71 Diluted earnings per share: Weighted average shares outstanding — diluted (1) 17,308,663 17,547,061 24,505,851 Net income (loss) per share $ (0.55 ) $ 2.84 $ 1.69 (1) For the year ended December 31, 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: Years Ended December 31, 2017 2016 2015 Weighted average shares for basic earnings per share 17,308,663 17,246,717 24,253,657 Non-vested — 187,526 148,669 Options — 112,818 103,525 Weighted average shares for diluted earnings per share 17,308,663 17,547,061 24,505,851 If the Company had not incurred a loss in the year ended December 31, 2017, 17,680,209 weighted average shares would have been used to compute the diluted loss per share calculation. In addition to the basic shares, weighted average shares for the diluted calculation would have included 157,441 shares of non-vested The weighted average shares outstanding used to determine dilutive earnings per share for the years ended December 31, 2016 and 2015 do not include 300,000 and 500,000 options, respectively, which were deemed to be anti-dilutive. The year ended December 31, 2017 did not have any options that were deemed to be anti-dilutive. |
Statutory Financial Information
Statutory Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Statutory Financial Information | 19. Statutory Financial Information GAAP differs in certain respects from Statutory Accounting Principles (“SAP”) as prescribed or permitted by the various U.S. state insurance departments. The principal differences between SAP and GAAP are as follows: • Under SAP, investments in debt securities are primarily carried at amortized cost, while under GAAP the Company records its debt securities at estimated fair value. • Under SAP, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under SAP, certain assets designated as “Non-admitted • Under SAP, net deferred income tax assets are admitted following the application of specified criteria, with the resulting admitted deferred tax amount being credited directly to surplus. • Under SAP, certain premium receivables are non-admitted • Under SAP, the costs and related receivables for guaranty funds and other assessments are recorded based on management’s estimate of the ultimate liability and related receivable settlement, while under GAAP such costs are accrued when the liability is probable and reasonably estimable and the related receivable amount is based on future premium collections or policy surcharges from in-force • Under SAP, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. • Under SAP, a provision for reinsurance is charged to surplus based on the authorized status of reinsurers, available collateral, and certain aging criteria, whereas under GAAP, an allowance for uncollectible reinsurance is established based on management’s best estimate of the collectability of reinsurance receivables. • Under SAP, the tax impact of the Tax Cuts and Jobs Act enacted on December 22, 2017 is recorded through surplus, whereas under GAAP, the tax impact is recorded in the Consolidated Statements of Operations. The National Association of Insurance Commissioners (“NAIC”) issues model laws and regulations, many of which have been adopted by state insurance regulators, relating to: (a) risk-based capital (“RBC”) standards; (b) codification of insurance accounting principles; (c) investment restrictions; and (d) restrictions on the ability of insurance companies to pay dividends. The Company’s U.S. insurance subsidiaries are required by law to maintain certain minimum surplus on a statutory basis, and are subject to regulations under which payment of a dividend from statutory surplus is restricted and may require prior approval of regulatory authorities. Applying the current regulatory restrictions as of December 31, 2017, the maximum amount of distributions that could be paid in 2018 by the United National insurance companies and the Penn-America insurance companies under applicable laws and regulations without regulatory approval is approximately $21.0 million and $6.3 million, respectively. The Penn-America insurance companies limitation includes $2.1 million that would be distributed to United National Insurance Company or its subsidiary Penn Independent Corporation based on the December 31, 2017 ownership percentages. American Reliable is unable to pay a distribution in 2018 without regulatory approval. During 2017, the United National Insurance Company, the Penn-America Insurance Company, and American Reliable declared and paid dividends of $17.8 million, $7.9 million, and $3.3 million, respectively. In addition, United National Insurance Company paid a $35.0 million dividend, which was previously declared in 2015, to its parent company, American Insurance Services, Inc. during the year ended December 31, 2017. The NAIC’s RBC model provides a tool for insurance regulators to determine the levels of statutory capital and surplus an insurer must maintain in relation to its insurance and investment risks, as well as its reinsurance exposures, to assess the potential need for regulatory attention. The model provides four levels of regulatory attention, varying with the ratio of an insurance company’s total adjusted capital to its authorized control level RBC (“ACLRBC”). If a company’s total adjusted capital is: (a) less than or equal to 200%, but greater than 150% of its ACLRBC (the “Company Action Level”), the company must submit a comprehensive plan to the regulatory authority proposing corrective actions aimed at improving its capital position; (b) less than or equal to 150%, but greater than 100% of its ACLRBC (the “Regulatory Action Level”), the regulatory authority will perform a special examination of the company and issue an order specifying the corrective actions that must be followed; (c) less than or equal to 100%, but greater than 70% of its ACLRBC (the “Authorized Control Level”), the regulatory authority may take any action it deems necessary, including placing the company under regulatory control; and (d) less than or equal to 70% of its ACLRBC (the “Mandatory Control Level”), the regulatory authority must place the company under its control. Based on the standards currently adopted, the Company reported in its 2017 statutory filings that the capital and surplus of the U.S. insurance companies are above the prescribed Company Action Level RBC requirements. The following is selected information for the Company’s U.S. insurance companies, net of intercompany eliminations, where applicable, as determined in accordance with SAP: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Statutory capital and surplus, as of end of period $ 274,586 $ 323,144 $ 318,101 Statutory net income (loss) ($ 19,019 ) 35,618 48,633 Global Indemnity Reinsurance must also prepare annual statutory financial statements. The Bermuda Insurance Act 1978 (the “Insurance Act”) prescribes rules for the preparation and substance of these statutory financial statements which include, in statutory form, a balance sheet, an income statement, a statement of capital and surplus and notes thereto. The statutory financial statements are not prepared in accordance with GAAP or SAP and are distinct from the financial statements prepared for presentation to Global Indemnity Reinsurance’s shareholders and under the Bermuda Companies Act 1981 (the “Companies Act”), which financial statements will be prepared in accordance with GAAP. The principal differences between statutory financial statements prepared under the Insurance Act and GAAP are as follows: • Under the Insurance Act, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under the Insurance Act, prepaid expenses and intangible assets are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis. • Under the Insurance Act, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. Under the Companies Act, Global Indemnity Reinsurance may only declare or pay a dividend if it has no reasonable grounds for believing that it is, or would after the payment be, unable to pay its liabilities as they become due, or if the realizable value of its assets would not be less than the aggregate of its liabilities and its issued share capital and share premium accounts. Global Indemnity Reinsurance is also prohibited, without the approval of the BMA, from reducing by 15% or more its total statutory capital or 25% or more of its total statutory capital and surplus as set out in its previous year’s statutory financial statements, and any application for such approval must include such information as the BMA may require. Based upon the total statutory capital plus the statutory surplus as set out in its 2017 statutory financial statements that will be filed in 2018, Global Indemnity Reinsurance could pay a dividend of up to $227.1 million without requesting BMA approval. Global Indemnity Reinsurance is dependent on receiving distributions from its subsidiaries in order to pay the full dividend in cash. In 2017, Global Indemnity Reinsurance declared a dividend of $120.0 million to its parent, Global Indemnity. Of this amount, $100.0 million was paid to Global Indemnity in December, 2017. As of December 31, 2017, accrued dividends were $20.0 million. The following is selected information for Global Indemnity Reinsurance, net of intercompany eliminations, where applicable, as determined in accordance with the Bermuda Insurance Act 1978: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Statutory capital and surplus, as of end of period $ 908,433 $ 838,923 $ 713,842 Statutory net income 29,647 32,768 864 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Information | 20. 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. All three segments follow the same accounting policies used for the Company’s consolidated financial statements. For further disclosure regarding the Company’s accounting policies, please see Note 3. During the 1 st re-evaluated On September 30, 2016, Diamond State Insurance Company sold all the outstanding shares of capital stock of one of its wholly owned subsidiaries, United National Specialty Insurance Company, to an unrelated party. Diamond State Insurance Company received a one-time The following are tabulations of business segment information for the years ended December 31, 2017, 2016, and 2015. Corporate information is included to reconcile segment data to the consolidated financial statements. 2017: (Dollars in thousands) Commercial Personal Reinsurance Operations (2) Total Revenues: Gross premiums written $ 212,670 $ 249,777 (6) $ 53,887 $ 516,334 Net premiums written $ 186,448 $ 209,799 $ 53,933 $ 450,180 Net premiums earned $ 178,798 $ 215,983 $ 43,253 $ 438,034 Other income 78 6,288 216 6,582 Total revenues 178,876 222,271 43,469 444,616 Losses and Expenses: Net losses and loss adjustment expenses 62,834 165,798 40,580 269,212 Acquisition costs and other underwriting expenses 75,990 (3) 93,113 (4) 14,630 183,733 Income (loss) from segments $ 40,052 $ (36,640 ) $ (11,741 ) (8,329 ) Unallocated Items: Net investment income 39,323 Net realized investment gains 1,576 Corporate and other operating expenses (25,714 ) Interest expense (16,906 ) Loss before income taxes (10,050 ) Income tax benefit 499 Net loss $ (9,551 ) Total assets $ 905,184 $ 467,525 $ 628,960 (5) $ 2,001,669 (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 $714 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $862 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 ($1,338) of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. 2016: (Dollars in thousands) Commercial Personal Reinsurance Operations (2) Total Revenues: Gross premiums written $ 203,061 $ 302,947 (6) $ 59,837 $ 565,845 Net premiums written $ 182,956 $ 228,183 $ 59,801 $ 470,940 Net premiums earned $ 189,342 $ 237,555 $ 41,568 $ 468,465 Other income (loss) 6,857 3,712 (224 ) 10,345 Total revenues 196,199 241,267 41,344 478,810 Losses and Expenses: Net losses and loss adjustment expenses 75,401 174,528 14,074 264,003 Acquisition costs and other underwriting expenses 81,477 (3) 99,109 (4) 16,064 196,650 Income (loss) from segments $ 39,321 $ (32,370 ) $ 11,206 18,157 Unallocated Items: Net investment income 33,983 Net realized investment gains 21,721 Corporate and other operating expenses (17,338 ) Interest expense (8,905 ) Income before income taxes 47,618 Income tax benefit 2,250 Net income $ 49,868 Total assets $ 790,564 $ 470,508 $ 711,874 (5) $ 1,972,946 (1) Includes business ceded to the Company’s Reinsurance Operations. (2) External business only, excluding business assumed from affiliates. (3) Includes federal excise tax of $756 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $948 relating to cessions from Personal Lines to Reinsurance Operations. (5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries (6) Includes $35,334 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. 2015: (Dollars in thousands) Commercial Personal Reinsurance Operations (2) Total Revenues: Gross premiums written $ 213,353 $ 327,147 (6) $ 49,733 $ 590,233 Net premiums written $ 198,404 $ 253,157 $ 49,683 $ 501,244 Net premiums earned $ 198,404 $ 253,948 $ 51,791 $ 504,143 Other income (loss) — 3,493 (93 ) 3,400 Total revenues 198,404 257,441 51,698 507,543 Losses and Expenses: Net losses and loss adjustment expenses 98,471 163,045 13,852 275,368 Acquisition costs and other underwriting expenses 84,623 (3) 97,687 (4) 18,993 201,303 Income (loss) from segments $ 15,310 $ (3,291 ) $ 18,853 30,872 Unallocated Items: Net investment income 34,609 Net realized investment losses (3,374 ) Corporate and other operating expenses (24,448 ) Interest expense (4,913 ) Income before income taxes 32,746 Income tax benefit 8,723 Net income $ 41,469 Total assets $ 714,688 $ 524,912 $ 717,694 (5) $ 1,957,294 (1) Includes business ceded to the Company’s Reinsurance Operations. (2) External business only, excluding business assumed from affiliates. (3) Includes federal excise tax of $1,047 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $1,270 relating to cessions from Personal Lines to Reinsurance Operations. (5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries (6) Includes $55,829 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Information | 21. Supplemental Cash Flow Information Taxes and Interest Paid The Company paid the following net federal income taxes and interest for 2017, 2016, and 2015: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Federal income taxes paid $ 133 $ 195 $ 104 Federal income taxes recovered 19 4,889 2 Interest paid 14,504 8,771 3,926 Non-Cash On January 1, 2015, Global Indemnity Group, Inc. acquired 100% of the voting equity interest of American Reliable. In conjunction with the acquisition, fair value of assets acquired and liabilities assumed by the Company were as follows: (Dollars in thousands) Fair value of assets acquired (including goodwill) $ 383,668 Liabilities assumed 283,871 |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
New Accounting Pronouncements | 22. New Accounting Pronouncements The following are new accounting guidance which have not yet been adopted. 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 amortization 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 October, 2016, the FASB issued new accounting guidance regarding intra-entity transfers of assets other than inventory. Under current GAAP, the tax effects of intra-entity asset transfers (intercompany sales) are deferred until the transferred asset is sold to a third party or otherwise recovered through use. This is an exception to the principle in ASC 740, Income Taxes, that generally requires comprehensive recognition of current and deferred income taxes. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax In August, 2016, the FASB issued new accounting guidance regarding the classification of certain cash receipts and cash payments within the statements of cash flows. The new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This guidance is effective for public business entities for fiscal periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. Although the Company is still evaluating the impact of this new guidance, the Company does not anticipate it will have a material impact on its financial condition, results of operations, or cash flows. In June, 2016, the FASB issued new accounting guidance addressing the measurement of credit losses on financial instruments. For assets held at amortized cost basis, the new guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of information for credit loss estimates. For available for sale debt securities, credit losses should be measured similar to current GAAP; however, the new guidance requires that credit losses be presented as an allowance rather than as a write-down and allows for the reversal of credit losses in the current period net income. This guidance is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early application of this new guidance is permitted as of the fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. This guidance will be applied using a modified-retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is still evaluating the impact of this guidance on its financial condition, results of operations, and cash flows. In February, 2016, the FASB issued new accounting guidance regarding leases. The new guidance increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Upon adoption, the Company expects to report higher assets and liabilities as a result of recognizing right-of-use In January, 2016, the FASB issued new accounting guidance surrounding the accounting for financial instruments. The new guidance addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. In particular, the guidance requires equity investments, except for those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with the changes in fair value recognized in net income. It also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. This guidance is effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application of this new guidance is permitted as of the beginning of the fiscal year of adoption. Upon adoption on January 1, 2018, the Company estimates that a cumulative effect adjustment, net of tax, of approximately $10.0 million will be reclassified from accumulated other comprehensive income and increase retained earnings. However, there will be no net impact to overall equity. In May, 2014, the FASB issued new accounting guidance regarding the recognition of revenue from customers arising from the transfer of goods and services. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Long and short duration insurance contracts, which comprise the majority of the Company’s revenues, are excluded from this accounting guidance. While insurance contracts are not within the scope of this guidance, the Company reviewed the requirement of the new guidance to determine whether its revenue recognition policy for fee income will be impacted by this updated guidance. Based on this review, the Company does not believe its accounting policies will be impacted by this new revenue recognition guidance. This guidance is effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. |
Summary of Quarterly Financial
Summary of Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Quarterly Financial Information (Unaudited) | 23. Summary of Quarterly Financial Information (Unaudited) An unaudited summary of the Company’s 2017 and 2016 quarterly performance is as follows: Year Ended December 31, 2017 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 113,126 $ 107,073 $ 108,619 $ 109,216 Net investment income 8,644 8,840 10,134 11,705 Net realized investment gains (losses) 775 (662 ) (963 ) 2,426 Net losses and loss adjustment expenses 62,561 57,700 82,395 66,556 Acquisition costs and other underwriting expenses 46,551 43,457 45,002 48,723 Income (loss) before income taxes 9,280 7,753 (16,779 ) (10,304 ) Net income (loss) 12,282 10,089 (8,924 ) (22,998 ) Per share data — Diluted: Net income (loss) $ 0.70 $ 0.57 $ (0.51 ) $ (1.33 ) Year Ended December 31, 2016 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 121,636 $ 117,804 $ 119,553 $ 109,472 Net investment income 9,746 6,562 8,795 8,880 Net realized investment gains (losses) (7,493 ) (3,492 ) 1,928 30,778 Net losses and loss adjustment expenses 64,784 78,111 72,162 48,946 Acquisition costs and other underwriting expenses 52,090 48,542 48,129 47,889 Income (loss) before income taxes 1,953 (11,468 ) 10,598 46,535 Net income (loss) 7,125 (5,165 ) 9,535 38,373 Per share data — Diluted: Net income (loss) $ 0.41 $ ( 0.30 ) $ 0.54 $ 2.18 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent events | 24. Subsequent events On March 4, 2018, the Company’s Board of Directors approved a dividend payment of $0.25 per ordinary share to be paid on March 29, 2018 to all shareholders of record as of the close of business on March 21, 2018. On March 8, 2018, the Company settled its final reserve calculation which resulted in $41.5 million being due to Global Indemnity Group, Inc. in accordance with the Stock Purchase Agreement between Global Indemnity Group, Inc. and American Bankers Insurance Group, Inc. for the purchase of American Reliable. The settlement is comprised of (i) receipt of $38.8 million for loss and loss adjustment expenses paid on or after January 1, 2015 or payable as of December 31, 2017 with respect to losses incurred prior to January 1, 2015, (ii) receipt of $6.2 million for accrued interest and (iii) payment of $3.5 million for the difference between the agreed upon purchase price and actual settlement on January 1, 2015. These amounts are included in other assets on the consolidated balance sheets as of December 31, 2017. |
Summary of Investments - Other
Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Investments - Other Than Investments in Related Parties | GLOBAL INDEMNITY LIMITED SCHEDULE I — SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN RELATED PARTIES (In thousands) As of December 31, 2017 Cost* Value Amount Included in the Type of Investment: Fixed maturities: United States government and government agencies and authorities $ 105,311 $ 104,680 $ 104,680 States, municipalities, and political subdivisions 94,947 95,114 95,114 Mortgage-backed and asset-backed securities 494,825 492,846 492,846 Public utilities 23,467 23,504 23,504 All other corporate bonds 524,594 525,293 525,293 Total fixed maturities 1,243,144 1,241,437 1,241,437 Equity securities: Common stocks: Public utilities 9,444 9,748 9,748 Industrial and miscellaneous 115,471 130,481 130,481 Total equity securities 124,915 140,229 140,229 Other long-term investments 77,820 77,820 77,820 Total investments $ 1,445,879 $ 1,459,486 $ 1,459,486 * Original cost of equity securities; original cost of fixed maturities adjusted for amortization of premiums and accretion of discounts; original cost for other long-term investments adjusted for income or loss earned on investments in accordance with equity method of accounting. All amounts are shown net of impairment losses. |
Condensed Financial Information
Condensed Financial Information of Registrant (Parent Only) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Registrant (Parent Only) | GLOBAL INDEMNITY LIMITED (Parent Only) Balance Sheets (Dollars in thousands, except share data) Years Ended December 31, 2017 2016 ASSETS Fixed maturities $ 13,118 $ 3,770 Cash and cash equivalents 11,089 91 Intercompany note receivable (1) — 750,397 Equity in unconsolidated subsidiaries (1) 1,207,590 292,195 Receivable for securities (1) — 1 Due from affiliates 4,618 — Other assets 20,681 59 Total assets $ 1,257,096 $ 1,046,513 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Debt $ 222,483 $ 96,497 Intercompany notes payable (1) 290,498 141,998 Interest payable 3,152 990 Due to affiliates (1) 12,465 8,759 Other liabilities 10,104 318 Total liabilities 538,702 248,562 Commitments and contingencies — — Shareholders’ equity: Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued: 10,102,927 and 13,436,548, respectively; A ordinary shares outstanding: 10,073,376 and 13,436,548, respectively; B ordinary shares issued and outstanding: 4,133,366 and 4,133,366, respectively 2 2 Preferred shares, $0.0001 par value, 100,000,000 shares authorized, none issued and outstanding — — Additional paid-in 434,730 430,283 Accumulated other comprehensive income, net of tax 8,983 (618 ) Retained earnings 275,838 368,284 A ordinary shares in treasury, at cost: 29,551 and 0 shares, respectively (1,159 ) — Total shareholders’ equity 718,394 797,951 Total liabilities and shareholders’ equity $ 1,257,096 $ 1,046,513 (1) This item has been eliminated in the Company’s Consolidated Financial Statements. See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY LIMITED SCHEDULE II — Condensed Financial Information of Registrant (continued) (Parent Only) Statement of Operations and Comprehensive Income (Dollars in thousands) Years Ended 2017 2016 Revenues Net investment income $ 361 $ 28 Net realized investment losses (368 ) — Total revenues (7 ) 28 Expenses: Intercompany interest expense (1) 2,477 198 Interest expense 15,872 1,172 Other expenses 16,801 661 Loss before equity in earnings of unconsolidated subsidiaries (35,157 ) (2,003 ) Equity in earnings of unconsolidated subsidiaries (1) 25,606 51,871 Net income (9,551 ) 49,868 Other comprehensive income (loss), net of tax: Unrealized holding gains (losses) 43 (17 ) Equity in other comprehensive loss of unconsolidated subsidiaries (1) 9,558 (4,679 ) Other comprehensive loss, net of tax 9,601 (4,696 ) Comprehensive income, net of tax $ 50 $ 45,172 (1) This item has been eliminated in the Company’s Consolidated Financial Statements. See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY PLC SCHEDULE II — Condensed Financial Information of Registrant (continued) (Parent Only) Statements of Operations and Comprehensive Income (Dollars in thousands) Year Ended Revenues Total revenues $ — Expenses: Intercompany interest expense (1) 1,296 Other expenses 8,203 Loss before equity in earnings of unconsolidated subsidiaries (9,499 ) Equity in earnings of unconsolidated subsidiaries (1) 50,968 Net income 41,469 Other comprehensive income (loss), net of tax: Equity in other comprehensive loss of unconsolidated subsidiaries (1) (19,306 ) Other comprehensive loss, net of tax (19,306 ) Comprehensive income, net of tax $ 22,163 (1) This item has been eliminated in the Company’s Consolidated Financial Statements. See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY LIMITED SCHEDULE II — Condensed Financial Information of Registrant — (continued) (Parent Only) Statements of Cash Flows (Dollars in thousands) Years Ended December 31, 2017 2016 Net cash provided by (used in) operating activities $ (24,927 ) $ 1 Cash flows from investing activities: Proceeds from disposition of subsidiaries — 456 Dividend received from subsidiary 100,000 — Capital contribution to a subsidiary (96,000 ) (450 ) Proceeds from sale of fixed maturities 12,389 84 Proceeds from maturity of fixed maturities 10,000 — Purchase of fixed maturities (32,044 ) — Net cash provided by (used in) investing activities (5,655 ) 90 Cash flows from financing activities: Redemption of ordinary shares (83,015 ) — Proceeds from issuance of subordinated notes 130,000 — Debt issuance cost (4,246 ) — Purchase of A ordinary shares (1,159 ) — Net cash provided by financing activities 41,580 — Net change in cash and equivalents 10,998 91 Cash and cash equivalents at beginning of period 91 — Cash and cash equivalents at end of period $ 11,089 $ 91 See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY PLC SCHEDULE II — Condensed Financial Information of Registrant — (continued) (Parent Only) Statement of Cash Flows (Dollars in thousands) Year Ended Net cash provided by operating activities $ 95,891 Cash flows from financing activities: Proceeds from issuance of subordinated notes 100,000 Debt issuance cost (3,659 ) Purchases of A ordinary shares (333 ) Tax benefit on share-based compensation expense 10 Redemption of ordinary shares (189,770 ) Net cash used for financing activities (93,752 ) Net change in cash and equivalents 2,139 Cash and cash equivalents at beginning of period 46 Cash and cash equivalents at end of period $ 2,185 See Notes to Consolidated Financial Statements included in Item 8. |
Supplementary Insurance Informa
Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplementary Insurance Information | See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY LIMITED (Dollars in thousands) Segment Deferred Policy Acquisition Costs Future Policy Benefits, Unearned Other Policy At December 31, 2017: Commercial Lines $ 21,222 $ 419,042 $ 102,191 $ — Personal Lines 27,563 120,255 137,704 — Reinsurance Operations 12,862 95,367 45,502 — At December 31, 2016: Commercial Lines $ 19,755 $ 458,645 $ 94,698 $ — Personal Lines 28,381 127,350 157,464 — Reinsurance Operations 9,765 65,047 34,822 — At December 31, 2015: Commercial Lines $ 20,784 $ 524,607 $ 100,027 $ — Personal Lines 31,900 94,359 169,669 — Reinsurance Operations 3,833 61,081 16,589 — Segment Premium Revenue Benefits, Claims, Amortization of Deferred Policy Acquisition Costs Net Written For the year ended December 31, 2017: Commercial Lines $ 178,798 $ 62,834 $ 42,008 $ 186,448 Personal Lines 215,983 165,798 56,616 209,799 Reinsurance Operations 43,253 40,580 10,340 53,933 Total $ 438,034 $ 269,212 $ 108,964 $ 450,180 For the year ended December 31, 2016: Commercial Lines $ 189,342 $ 75,401 $ 42,361 $ 182,956 Personal Lines 237,555 174,528 61,416 228,183 Reinsurance Operations 41,568 14,074 10,540 59,801 Total $ 468,465 $ 264,003 $ 114,317 $ 470,940 For the year ended December 31, 2015: Commercial Lines $ 198,404 $ 98,471 $ 43,821 $ 198,404 Personal Lines 253,948 163,045 31,291 253,157 Reinsurance Operations 51,791 13,852 11,058 49,683 Total $ 504,143 $ 275,368 $ 86,170 $ 501,244 Unallocated Corporate Items Net Investment Income Corporate and Other Expenses For the year ended December 31, 2017 $ 39,323 $ 25,714 For the year ended December 31, 2016 33,983 17,338 For the year ended December 31, 2015 34,609 24,448 |
Reinsurance Earned Premiums
Reinsurance Earned Premiums | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Earned Premiums | GLOBAL INDEMNITY LIMITED SCHEDULE IV — REINSURANCE EARNED PREMIUMS (Dollars in thousands) Direct Amount Ceded to Other Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net For the year ended December 31, 2017: Property & Liability Insurance $ 440,109 $ 79,886 $ 77,811 $ 438,034 17.8 % For the year ended December 31, 2016: Property & Liability Insurance $ 466,750 $ 96,552 $ 98,267 $ 468,465 21.0 % For the year ended December 31, 2015: Property & Liability Insurance $ 452,441 $ 92,852 $ 144,554 $ 504,143 28.7 % |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts and Reserves | GLOBAL INDEMNITY LIMITED SCHEDULE V—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Dollars in thousands) Description Balance at Period Charged (Credited) to Costs Charged Other Deductions Balance at For the year ended December 31, 2017: Investment asset valuation reserves: Mortgage loans $ — $ — $ — $ — $ — Real estate — — — — — Allowance for doubtful accounts: Premiums, accounts and notes receivable $ 1,928 $ 251 $ — $ — $ 2,179 Deferred tax asset valuation allowance — — — — — Reinsurance receivables 8,040 — — — 8,040 For the year ended December 31, 2016: Investment asset valuation reserves: Mortgage loans $ — $ — $ — $ — $ — Real estate — — — — — Allowance for doubtful accounts: Premiums, accounts and notes receivable $ 1,646 $ 282 $ — $ — $ 1,928 Deferred tax asset valuation allowance — — — — — Reinsurance receivables 9,675 (1,635 ) — — 8,040 For the year ended December 31, 2015: Investment asset valuation reserves: Mortgage loans $ — $ — $ — $ — $ — Real estate — — — — — Allowance for doubtful accounts: Premiums, accounts and notes receivable $ 1,518 $ 128 $ — $ — $ 1,646 Deferred tax asset valuation allowance — — — — — Reinsurance receivables 9,350 325 — — 9,675 |
Supplementary Information For P
Supplementary Information For Property Casualty Underwriters | 12 Months Ended |
Dec. 31, 2017 | |
Supplementary Information For Property Casualty Underwriters | GLOBAL INDEMNITY LIMITED SCHEDULE VI — SUPPLEMENTARY INFORMATION FOR PROPERTY CASUALTY UNDERWRITERS (Dollars in thousands) Deferred Policy Acquisition Costs Reserves for Discount If Any Deducted Unearned Consolidated Property & Casualty Entities: As of December 31, 2017 $ 61,647 $ 634,664 $ 1,200 $ 285,397 As of December 31, 2016 57,901 651,042 2,000 286,984 As of December 31, 2015 56,517 680,047 3,000 286,285 Earned Net Claims and Claim Adjustment Amortization Of Deferred Policy Acquisition Costs Paid Claims and Claim Premiums Current Year Prior Year Consolidated Property & Casualty Entities: For the year ended December 31, 2017 $ 438,034 $ 39,323 $ 323,112 $ (53,900 ) $ 108,964 $ 271,756 $ 450,180 For the year ended December 31, 2016 468,465 33,983 321,255 (57,252 ) 114,317 317,369 470,940 For the year ended December 31, 2015 504,143 34,609 310,066 (34,698 ) 86,170 332,417 501,244 |
Principles of Consolidation a39
Principles of Consolidation and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 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 primarily 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, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The Company’s Reinsurance Operations consist solely of the operations of its Bermuda-based wholly-owned subsidiary, Global Indemnity Reinsurance. Global Indemnity Reinsurance is a treaty reinsurer of specialty property and casualty insurance and reinsurance companies. The Company’s Reinsurance Operations segment provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. During the 1 st re-evaluated |
Intercompany Balances and Transactions | The consolidated financial statements have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The consolidated financial statements include the accounts of Global Indemnity and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Investments | Investments The Company’s investments in fixed maturities and equity securities are classified as available for sale and are carried at their fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of the Company’s available for sale portfolio, excluding interests in limited liability companies and limited partnerships, are determined on the basis of quoted market prices where available. If quoted market prices are not available, the Company uses third party pricing services to assist in determining fair value. In many instances, these services examine the pricing of similar instruments to estimate fair value. The Company purchases bonds with the expectation of holding them to their maturity; however, changes to the portfolio are sometimes required to assure it is appropriately matched to liabilities. In addition, changes in financial market conditions and tax considerations may cause the Company to sell an investment before it matures. The difference between amortized cost and fair value of the Company’s available for sale investments, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders’ equity and, accordingly, has no effect on net income other than for the credit loss component of impairments deemed to be other than temporary. For investments in limited liability companies and limited partnerships where the ownership interest is less than 3%, the Company carries these investments at fair value, and the change in the difference between cost and the fair value of the partnership interests, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders’ equity and, accordingly, has no effect on net income other than for impairments deemed to be other than temporary. The Company uses the equity method to account for an investments in limited liability companies and limited partnerships where its ownership interest exceeds 3%. The equity method of accounting for an investment in a limited liability company or limited partnership requires that its cost basis be updated to account for the income or loss earned on the investment. The income or loss associated with the limited liability companies or limited partnerships is reflected in the consolidated statements of operations, and the adjusted cost basis approximates fair value. The Company’s investments in other invested assets were valued at $77.8 million and $66.1 million as of December 31, 2017 and 2016, respectively. These amounts relate to investments in limited liability companies and limited partnerships. The Company does not have access to daily valuations, therefore; the estimated fair value of the limited liability companies and limited partnerships are based on net asset value as a practical expedient for the limited liability companies and limited partnerships. Net realized gains and losses on investments are determined based on the first-in, first-out The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each fixed maturity security in an unrealized loss position to assess whether the security has a credit loss. Specifically, the Company considers credit rating, market price, and issuer specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities for which the Company determines that a credit loss is likely are subjected to further analysis through discounted cash flow testing to estimate the credit loss to be recognized in earnings, if any. The specific methodologies and significant assumptions used by asset class are discussed below. Upon identification of such securities and periodically thereafter, a detailed review is performed to determine whether the decline is considered other than temporary. This review includes an analysis of several factors, including but not limited to, the credit ratings and cash flows of the securities and the magnitude and length of time that the fair value of such securities is below cost. For fixed maturities, the factors considered in reaching the conclusion that a decline below cost is other than temporary include, among others, whether: (1) the issuer is in financial distress; (2) the investment is secured; (3) a significant credit rating action occurred; (4) scheduled interest payments were delayed or missed; (5) changes in laws or regulations have affected an issuer or industry; (6) the investment has an unrealized loss and was identified by the Company’s investment manager as an investment to be sold before recovery or maturity; and (7) the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized. According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met, the Company must recognize an other than temporary impairment with the entire unrealized loss being recorded through earnings. For debt securities in an unrealized loss position not meeting these conditions, the Company assesses whether the impairment of a security is other than temporary. If the impairment is deemed to be other than temporary, the Company must separate the other than temporary impairment into two components: the amount representing the credit loss and the amount related to all other factors, such as changes in interest rates. The credit loss represents the portion of the amortized book value in excess of the net present value of the projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. The credit loss component of the other than temporary impairment is recorded through earnings, whereas the amount relating to factors other than credit losses is recorded in other comprehensive income, net of taxes. For equity securities, management carefully reviews all securities with unrealized losses to determine if a security should be impaired and further focuses on securities that have either: (1) persisted with unrealized losses for more than twelve consecutive months or (2) the value of the investment has been 20% or more below cost for six continuous months or more. The amount of any write-down, including those that are deemed to be other than temporary, is included in earnings as a realized loss in the period in which the impairment arose. For an analysis of other than temporary losses that were recorded for the years ended December 31, 2017, 2016, and 2015, please see Note 5 below. |
Variable Interest Entities | Variable Interest Entities A Variable Interest Entity (“VIE”) refers to an investment in which an investor holds a controlling interest that is not based on the majority of voting rights. Under the VIE model, the party that has the power to exercise significant management influence and maintain a controlling financial interest in the entity’s economics is said to be the primary beneficiary, and is required to consolidate the entity within their results. Other entities that participate in a VIE, for which their financial interests fluctuate with changes in the fair value of the investment entity’s net assets but do not have significant management influence and the ability to direct the VIE’s significant economic activities are said to have a variable interest in the VIE but do not consolidate the VIE in their financial results. The Company has variable interests in three VIEs for which it is not the primary beneficiary. These investments are accounted for under the equity method of accounting as their ownership interest exceeds 3% of their respective investments. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purpose of the statements of cash flows, the Company considers all liquid instruments with an original maturity of three months or less to be cash equivalents. The Company has a cash management program that provides for the investment of excess cash balances primarily in short-term money market instruments. Generally, bank balances exceed federally insured limits. The carrying amount of cash and cash equivalents approximates fair value. At December 31, 2017 and 2016, the Company had approximately $67.1 million and $52.0 million, respectively, of cash and cash equivalents that was invested in a diversified portfolio of high quality short-term debt securities. |
Valuation of Premium Receivable | Valuation of Premium Receivable The Company evaluates the collectability of premium receivable based on a combination of factors. In instances in which the Company is aware of a specific circumstance where a party may be unable to meet its financial obligations to the Company, a specific allowance for bad debts against amounts due is recorded to reduce the net receivable to the amount reasonably believed by management to be collectible. For all remaining balances, allowances are recognized for bad debts based on the length of time the receivables are past due. The allowance for bad debts was $2.2 million and $1.9 million as of December 31, 2017 and 2016, respectively. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company tests for impairment of goodwill at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of goodwill for impairment using both qualitative and quantitative factors. Impairment of goodwill is recognized only if the carrying amount of the reporting unit, including goodwill, exceeds the fair value of the reporting unit. The amount of the impairment loss would be equal to the excess carrying value of the goodwill over the implied fair value of the reporting unit goodwill. Based on the qualitative assessment performed, there was no impairment of goodwill as of December 31, 2017. Impairment of intangible assets with an indefinite useful life is tested at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of indefinite lived intangible assets for impairment using both qualitative and quantitative factors. Impairment of indefinite lived intangible assets is recognized only if the carrying amount of the intangible assets exceeds the fair value of said assets. The amount of the impairment loss would be equal to the excess carrying value of the assets over the fair value of said assets. Based on the qualitative assessment performed, there were no impairments of indefinite lived intangible assets as of December 31, 2017. Intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated useful lives. The carrying amounts of definite lived intangible assets are regularly reviewed for indicators of impairment in accordance with applicable accounting guidance. Impairment is recognized only if the carrying amount of the intangible asset is in excess of its undiscounted projected cash flows. The impairment is measured as the difference between the carrying amount and the estimated fair value of the asset. As of December 31, 2017, there were no triggering events that occurred during the year that would result in an impairment of definite lived intangible assets. See Note 8 for additional information on goodwill and intangible assets. |
Reinsurance | Reinsurance In the normal course of business, the Company seeks to reduce the loss that may arise from events that cause unfavorable underwriting results by reinsuring certain levels of risk from various areas of exposure with reinsurers. Amounts receivable from reinsurers are estimated in a manner consistent with the reinsured policy and the reinsurance contract. The Company regularly reviews the collectability of reinsurance receivables. An allowance for uncollectible reinsurance receivable is recognized based on the financial strength of the reinsurers and the length of time any balances are past due. Any changes in the allowance resulting from this review are included in net losses and loss adjustment expenses on the consolidated statements of operations during the period in which the determination is made. The allowance for uncollectible reinsurance was $8.0 million as of December 31, 2017 and 2016. The applicable accounting guidance requires that the reinsurer must assume significant insurance risk under the reinsured portions of the underlying insurance contracts and that there must be a reasonably possible chance that the reinsurer may realize a significant loss from the transaction. The Company has evaluated its reinsurance contracts and concluded that each contract qualifies for reinsurance accounting treatment pursuant to this guidance. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. The deferred tax asset balance is analyzed regularly by management. This assessment requires significant judgment and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of carryforward periods, and tax planning strategies and/or actions. Management believes that it is more likely than not that the results of future operations can generate sufficient taxable income to realize the remaining deferred income tax assets, and accordingly, the Company has not established any valuation allowances. |
Deferred Acquisition Costs | Deferred Acquisition Costs The costs of acquiring new and renewal insurance and reinsurance contracts include commissions, premium taxes and certain other costs that are directly related to the successful acquisition of new and renewal insurance and reinsurance contracts. The excess of the Company’s costs of acquiring new and renewal insurance and reinsurance contracts over the related ceding commissions earned from reinsurers is capitalized as deferred acquisition costs and amortized over the period in which the related premiums are earned. The amortization of deferred acquisition costs for the years ended December 31, 2017, 2016, and 2015 was $109.0 million, $114.3 million, and $86.2 million, respectively. |
Premium Deficiency | Premium Deficiency A premium deficiency is recognized if the sum of expected loss and loss adjustment expenses and unamortized acquisition costs exceeds related unearned premium after consideration of investment income. This evaluation is done at a product line level in Insurance Operations and at a treaty level in Reinsurance Operations. Any future expected loss on the related unearned premium is recorded first by impairing the unamortized acquisition costs on the related unearned premium followed by an increase to loss and loss adjustment expense reserves on additional expected loss in excess of unamortized acquisition costs. For the years ended December 31, 2017, 2016, and 2015, the total premium deficiency charges were $0.3 million, $0.3 million, and $0.2 million, respectively, comprised solely of reductions to unamortized deferred acquisition costs within the commercial automobile lines in the Commercial Lines Segment. Based on the Company’s analysis, the Company expensed acquisition cost as incurred for the remainder of 2017, 2016 and 2015 for the commercial automobile lines in the Commercial Lines Segment. As the charges were a reduction of unamortized deferred acquisition costs in each respective period, no premium deficiency reserve existed as of December 31, 2017 or 2016. |
Derivative Instruments | Derivative Instruments The Company uses derivative instruments to manage its exposure to cash flow variability from interest rate risk. The derivative instruments are carried on the balance sheet at fair value and included in other assets and other liabilities. Changes in the fair value of the derivative instruments and the periodic net interest settlements under the derivatives instruments are recognized as net realized investment gains (losses) on the consolidated statements of operations. |
Margin Borrowing Facility | Margin Borrowing Facility The carrying amounts reported in the balance sheet represent the outstanding borrowings. The outstanding borrowings are due on demand; therefore, the cash receipts and cash payments related to the margin borrowing facility are shown net in the consolidated statements of cash flows. |
Subordinated Notes | Subordinated Notes The carrying amounts reported in the balance sheet represent the outstanding balances, net of deferred issuance cost. See Note 12 for details. |
Unpaid Losses and Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses The liability for unpaid losses and loss adjustment expenses represents the Company’s best estimate of future amounts needed to pay losses and related settlement expenses with respect to events insured by the Company. This liability is based upon the accumulation of individual case estimates for losses reported prior to the close of the accounting period with respect to direct business, estimates received from ceding companies with respect to assumed reinsurance, and estimates of unreported losses. The process of establishing the liability for unpaid losses and loss adjustment is complex, requiring the use of informed actuarially based estimates and management’s judgment. In some cases, significant periods of time, up to several years or more, may elapse between the occurrence of an insured loss and the reporting of that loss to the Company. To establish this liability, the Company regularly reviews and updates the methods of making such estimates and establishing the resulting liabilities. Any resulting adjustments are recorded in consolidated statements of operations during the period in which the determination is made. |
Retirement of Treasury Stock | Retirement of Treasury Stock Upon the formal retirement of treasury stock, the Company offsets the par value of the treasury stock that is being retired against Ordinary Shares and reflects any excess of cost over par value as a deduction from Additional Paid-in |
Share Redemptions | Share Redemptions When shares are redeemed, the Company offsets the par value of the redeemed shares against Ordinary Shares and reflects any excess of cost over par value as a deduction from Retained Earnings. |
Premiums | Premiums Premiums are recognized as revenue ratably over the term of the respective policies and treaties. Unearned premiums are computed on a pro rata basis to the day of expiration. Mandatory reinstatement premiums assessed on reinsurance policies are earned in the period of the loss event that gave rise to the reinstatement premiums. |
Contingent Commissions | Contingent Commissions Certain professional general agencies of the Insurance Operations are paid special incentives, referred to as contingent commissions, when results of business produced by these agencies are more favorable than predetermined thresholds. Similarly, in some circumstances, companies that cede business to the Reinsurance Operations are paid profit commissions based on the profitability of the ceded portfolio. These commissions are charged to other underwriting expenses when incurred. |
Share-Based Compensation | Share-Based Compensation The Company accounts for stock options and other equity based compensation using the modified prospective application of the fair value-based method permitted by the appropriate accounting guidance. See Note 16 for details. |
Earnings per Share | Earnings per Share Basic earnings per share have been calculated by dividing net income available to common shareholders by the weighted-average ordinary shares outstanding. In periods of net income, diluted earnings per share have been calculated by dividing net income available to common shareholders by the sum of the weighted-average ordinary shares outstanding and the weighted-average common share equivalents outstanding, which include options and other equity awards. In periods of net loss, diluted earnings per share is the same as basic earnings per share. See Note 18 for details. |
Foreign Currency | Foreign Currency The Company maintains investments and cash accounts in foreign currencies related to the operations of its business. At period-end, re-measures non-U.S. re-measures re-measurement |
Other Income | Other Income On September 30, 2016, Diamond State Insurance Company sold all the outstanding shares of capital stock of one of its wholly owned subsidiaries, United National Specialty Insurance Company, to an unrelated party. Diamond State Insurance Company received a one-time In addition, other income is comprised of fee income on policies issued, commission income, accrued interest on the anticipated indemnification of unpaid loss and loss adjustment expense reserve, and foreign exchange gains and losses. |
Fair Value Measurement Policy | The Company’s invested assets and derivative instruments are carried at their fair value and are categorized based upon a fair value hierarchy: • Level 1 — inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date. • Level 2 — inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly. • Level 3 — inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset. The 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 terms and conditions sourced from commercial vendors. Bonds with similar characteristics are grouped into specific sectors. Both asset classes use standard inputs and utilize bid price or spread, quotes, benchmark yields, discount rates, market data feeds, and financial statements. • 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 benchmark 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, an integrated evaluation system is used. The pricing models incorporate trades, spreads, benchmark curves, market data feeds, new issue data, and trustee reports. • 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, various external analytical products are utilized and purchased from commercial vendors. |
Statutory Income Tax Rates | The statutory income tax rate of each country is applied against the annual taxable income of each country to calculate the annual income tax expense. |
Tax Uncertainties | The Company applies a more-likely-than-not |
Loss Reserves and Prior Year Development | When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates. |
Share-Based Compensation | The fair value method of accounting recognizes share-based compensation to employees and non-employee For the purpose of determining the fair value of stock option awards, the Company uses the Black-Scholes option-pricing model. An estimation of forfeitures is required when recognizing compensation expense which is then adjusted over the requisite service period should actual forfeitures differ from such estimates. Changes in estimated forfeitures are recognized through a cumulative adjustment to compensation in the period of change. Prior to January 1, 2017, the prescribed accounting guidance required tax benefits relating to excess stock-based compensation deductions to be prospectively presented in the consolidated statements of cash flows as financing cash inflows. The tax benefit resulting from stock-based compensation deductions in excess of amounts reported for financial reporting purposes was $0.1 million and $0.05 million for the years ended December 31, 2016 and 2015, respectively. |
Financial Information | Global Indemnity Reinsurance must also prepare annual statutory financial statements. The Bermuda Insurance Act 1978 (the “Insurance Act”) prescribes rules for the preparation and substance of these statutory financial statements which include, in statutory form, a balance sheet, an income statement, a statement of capital and surplus and notes thereto. The statutory financial statements are not prepared in accordance with GAAP or SAP and are distinct from the financial statements prepared for presentation to Global Indemnity Reinsurance’s shareholders and under the Bermuda Companies Act 1981 (the “Companies Act”), which financial statements will be prepared in accordance with GAAP. The principal differences between statutory financial statements prepared under the Insurance Act and GAAP are as follows: • Under the Insurance Act, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under the Insurance Act, prepaid expenses and intangible assets are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis. • Under the Insurance Act, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. |
Global Indemnity Reinsurance | |
Financial Information | GAAP differs in certain respects from Statutory Accounting Principles (“SAP”) as prescribed or permitted by the various U.S. state insurance departments. The principal differences between SAP and GAAP are as follows: • Under SAP, investments in debt securities are primarily carried at amortized cost, while under GAAP the Company records its debt securities at estimated fair value. • Under SAP, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under SAP, certain assets designated as “Non-admitted • Under SAP, net deferred income tax assets are admitted following the application of specified criteria, with the resulting admitted deferred tax amount being credited directly to surplus. • Under SAP, certain premium receivables are non-admitted • Under SAP, the costs and related receivables for guaranty funds and other assessments are recorded based on management’s estimate of the ultimate liability and related receivable settlement, while under GAAP such costs are accrued when the liability is probable and reasonably estimable and the related receivable amount is based on future premium collections or policy surcharges from in-force • Under SAP, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. • Under SAP, a provision for reinsurance is charged to surplus based on the authorized status of reinsurers, available collateral, and certain aging criteria, whereas under GAAP, an allowance for uncollectible reinsurance is established based on management’s best estimate of the collectability of reinsurance receivables. • Under SAP, the tax impact of the Tax Cuts and Jobs Act enacted on December 22, 2017 is recorded through surplus, whereas under GAAP, the tax impact is recorded in the Consolidated Statements of Operations. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets | An identification and valuation of intangible assets was performed that resulted in the recognition of intangible assets of $32.0 million with values assigned as follows: (Dollars in thousands) Description Useful Life Amount State insurance licenses Indefinite $ 5,000 Value of business acquired < 1 year 25,500 Agent relationships 10 years 900 Trade name 7 years 600 $ 32,000 |
Expected Amortization Expense | The Company expects that amortization expense for the next five years will be as follows: (Dollars in thousands) 2018 $ 529 2019 529 2020 529 2021 529 2022 443 |
American Reliable Insurance Company | |
Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the date of the acquisition. (Dollars in thousands) ASSETS: Investments $ 226,458 Cash and cash equivalents 21,360 Premiums receivables, net 26,102 Accounts receivable 11,311 Reinsurance receivables 13,842 Prepaid reinsurance premiums 43,506 Intangible assets 32,000 Deferred federal income taxes 915 Other assets 6,473 Total assets 381,967 LIABILITIES: Unearned premiums 172,234 Unpaid losses and loss adjustment expenses 89,489 Reinsurance balances payable 13,219 Contingent commissions 3,903 Other liabilities 5,026 Total liabilities 283,871 Estimated fair value of net assets acquired 98,096 Purchase price 99,797 Goodwill $ 1,701 |
Intangible assets | The following table presents details of the Company’s intangible assets arising from the American Reliable acquisition as of December 31, 2015: (Dollars in thousands) Description Useful Life Cost Accumulated Net State insurance licenses Indefinite $ 5,000 $ — $ 5,000 Value of business acquired < 1 year 25,500 25,500 0 Agent relationships 10 years 900 90 810 Trade name 7 years 600 86 514 $ 32,000 $ 25,676 $ 6,324 |
Expected Amortization Expense | As of December 31, 2015, the Company expected that amortization expense for the next five years related to the American Reliable acquisition will be as follows: (Dollars in thousands) 2016 $ 176 2017 176 2018 176 2019 176 2020 176 |
Fair Value, Gross Contractual Amounts Due, and Contractual Cash Flows Not Expected to be Collected of Acquired Receivables | As of December 31, 2015, the fair value, gross contractual amounts due, and contractual cash flows not expected to be collected of acquired receivables were as follows: (Dollars in thousands) Fair Value Gross Contractual Premium receivables $ 26,102 $ 26,896 $ 794 Accounts receivable 11,311 11,311 — Reinsurance receivables 13,842 13,842 — |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2017 and 2016: (Dollars in thousands) Amortized Cost Gross Gross Estimated Fair Value Other than AOCI (1) As of December 31, 2017 Fixed maturities: U.S. treasury and agency obligations $ 105,311 $ 562 $ (1,193 ) $ 104,680 $ — Obligations of states and political subdivisions 94,947 441 (274 ) 95,114 — Mortgage-backed securities 150,237 404 (1,291 ) 149,350 — Asset-backed securities 203,827 267 (393 ) 203,701 (1 ) Commercial mortgage-backed securities 140,761 101 (1,067 ) 139,795 — Corporate bonds 422,486 2,295 (1,391 ) 423,390 — Foreign corporate bonds 125,575 377 (545 ) 125,407 — Total fixed maturities 1,243,144 4,447 (6,154 ) 1,241,437 (1 ) Common stock 124,915 18,574 (3,260 ) 140,229 — Other invested assets 77,820 — — 77,820 — Total $ 1,445,879 $ 23,021 $ (9,414 ) $ 1,459,486 $ (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 AOCI (1) 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 December 31, 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 $ 70,222 $ 70,165 Due in one year through five years 435,122 434,078 Due in five years through ten years 235,233 236,552 Due in ten years through fifteen years 2,187 2,205 Due after fifteen years 5,555 5,591 Mortgage-backed securities 150,237 149,350 Asset-backed securities 203,827 203,701 Commercial mortgage-backed securities 140,761 139,795 Total $ 1,243,144 $ 1,241,437 |
Summary of Securities With Gross Unrealized Losses | The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 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 $ 79,403 $ (962 ) $ 17,469 $ (231 ) $ 96,872 $ (1,193 ) Obligations of states and political subdivisions 34,537 (149 ) 12,060 (125 ) 46,597 (274 ) Mortgage-backed securities 127,991 (1,247 ) 1,866 (44 ) 129,857 (1,291 ) Asset-backed securities 97,817 (371 ) 6,423 (22 ) 104,240 (393 ) Commercial mortgage-backed securities 83,051 (523 ) 27,976 (544 ) 111,027 (1,067 ) Corporate bonds 147,064 (754 ) 53,024 (637 ) 200,088 (1,391 ) Foreign corporate bonds 53,320 (305 ) 20,582 (240 ) 73,902 (545 ) Total fixed maturities 623,183 (4,311 ) 139,400 (1,843 ) 762,583 (6,154 ) Common stock 32,759 (3,260 ) — — 32,759 (3,260 ) Total $ 655,942 $ (7,571 ) $ 139,400 $ (1,843 ) $ 795,342 $ (9,414 ) (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 years ended December 31, 2017, 2016, and 2015: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Fixed maturities: OTTI losses, gross $ (31 ) $ (259 ) $ (24 ) Portion of loss recognized in other comprehensive income (pre-tax) — — — Net impairment losses on fixed maturities recognized in earnings (31 ) (259 ) (24 ) Equity securities (2,575 ) (6,474 ) (7,311 ) Total $ (2,606 ) $ (6,733 ) $ (7,335 ) |
Schedule of Credit Losses Recognized in Earnings | The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company as of December 31, 2017, 2016, and 2015 for which a portion of the OTTI loss was recognized in other comprehensive income. Years Ended (Dollars in thousands) 2017 2016 2015 Balance at beginning of period $ 31 $ 31 $ 50 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 (18 ) — (19 ) Balance at end of period $ 13 $ 31 $ 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 December 31, 2017 and 2016 was as follows: December 31, (Dollars in thousands) 2017 2016 Net unrealized gains (losses) from : Fixed maturities $ (1,707 ) $ (1,308 ) Common stock 15,314 1,042 Foreign currency fluctuations 551 — Deferred taxes (5,175 ) (352 ) Accumulated other comprehensive income, net of tax $ 8,983 $ (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 years ended December 31, 2017 and 2016: Year Ended December 31, 2017 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ (554 ) $ (64 ) $ (618 ) Other comprehensive income (loss) before reclassification 9,455 994 10,449 Amounts reclassified from accumulated other comprehensive income (loss) (629 ) (219 ) (848 ) Other comprehensive income (loss) 8,826 775 9,601 Ending balance $ 8,272 $ 711 $ 8,983 Year Ended December 31, 2016 (Dollars in thousands) Unrealized Gains Foreign Currency Accumulated Other Beginning balance $ 4,200 $ (122 ) $ 4,078 Other comprehensive income (loss) before reclassification 10,374 (261 ) 10,113 Amounts reclassified from accumulated other comprehensive income (loss) (15,128 ) 319 (14,809 ) Other comprehensive income (loss) (4,754 ) 58 (4,696 ) Ending balance $ (554 ) $ (64 ) $ (618 ) |
Reclassifications Out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive income for the years ended December 31, 2017 and 2016 were as follows: (Dollars in thousands) Amounts Reclassified Details about Accumulated Other Comprehensive Income Components Affected Line Item in the Consolidated 2017 2016 Unrealized gains and losses on available for sale securities Other net realized investment (gains) $ (3,921 ) $ (30,055 ) Other than temporary impairment losses on investments 2,606 6,733 Total before tax (1,315 ) (23,322 ) Income tax expense 686 8,194 Unrealized gains and losses on available for sale securities, net of tax (629 ) (15,128 ) Foreign currency items Other net realized investment (gains) losses (336 ) 491 Income tax expense (benefit) 117 (172 ) Foreign currency items, net of tax (219 ) 319 Total reclassifications Total reclassifications, net of tax $ (848 ) $ (14,809 ) |
Components of Net Realized Investment Gains (Losses) | The components of net realized investment gains (losses) for the years ended December 31, 2017, 2016, and 2015 were as follows: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Fixed maturities: Gross realized gains $ 4,066 $ 2,947 $ 3,565 Gross realized losses (3,387 ) (691 ) (2,180 ) Net realized gains 679 2,256 1,385 Common stock: Gross realized gains 4,178 28,785 10,379 Gross realized losses (3,206 ) (8,210 ) (8,246 ) Net realized gains 972 20,575 2,133 Preferred stock: Gross realized gains — — 96 Gross realized losses — — — Net realized gains — — 96 Derivatives: Gross realized gains 3,555 3,733 — Gross realized losses (3,630 ) (4,843 ) (6,988 ) Net realized gains (losses) (1) (75 ) (1,110 ) (6,988 ) Total net realized investment gains (losses) $ 1,576 $ 21,721 $ (3,374 ) (1) Includes $3.6 million, $4.8 million, and $5.4 million of periodic net interest settlements related to the derivatives for the years ended December 31, 2017, 2016, and 2015, respectively. |
Proceeds from Sales and Redemptions of Available-for-Sale Securities | The proceeds from sales and redemptions of available for sale securities resulting in net realized investment gains (losses) for the years ended December 31, 2017, 2016, and 2015 were as follows: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Fixed maturities $ 918,439 $ 381,389 $ 647,404 Equity securities 32,218 111,156 39,723 Preferred stock — — 1,540 |
Schedule of Investment Income | The sources of net investment income for the years ended December 31, 2017, 2016, and 2015 were as follows: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Fixed maturities $ 33,020 $ 30,337 $ 32,091 Equity securities 3,595 3,302 3,125 Cash and cash equivalents 894 217 82 Other invested assets 4,741 5,295 2,620 Total investment income 42,250 39,151 37,918 Investment expense (1) (2,927 ) (5,168 ) (3,309 ) Net investment income $ 39,323 $ 33,983 $ 34,609 (1) Investment expense for the year ended December 31, 2016 includes $1.5 million in upfront fees necessary to enter into a new investment. See Note 15 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 Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Net investment income $ 39,323 $ 33,983 $ 34,609 Net realized investment gains (losses) 1,576 21,721 (3,374 ) Change in unrealized holding gains and losses 14,424 (8,240 ) (25,673 ) Net realized and unrealized investment returns 16,000 13,481 (29,047 ) Total investment return $ 55,323 $ 47,464 $ 5,562 Total investment return % 3.5 % 3.1 % 0.3 % Average investment portfolio $ 1,597,487 $ 1,507,184 $ 1,752,785 |
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 Securities Municipal Bond Insurance Association $ 1,157 $ — $ — $ 1,157 Gov’t National Housing Association 425 — 425 — Total backed by financial guarantors 1,582 — 425 1,157 Other credit enhanced municipal bonds — — — — Total 1,582 — 425 1,157 |
Summary of Estimated Fair Values of Bonds Held on Deposit | The fair values were as follows as of December 31, 2017 and 2016: Estimated Fair Value (Dollars in thousands) December 31, December 31, On deposit with governmental authorities $ 26,852 $ 29,079 Intercompany trusts held for the benefit of U.S. policyholders 328,494 351,002 Held in trust pursuant to third party requirements 94,098 88,178 Letter of credit held for third party requirements 3,944 4,871 Securities held as collateral for borrowing arrangements (1) 88,040 85,939 Total $ 541,428 $ 559,069 (1) Amount required to collateralize margin borrowing facility. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2017 and 2016: (Dollars in thousands) December 31, 2017 December 31, 2016 Derivatives Not Designated as Hedging Instruments under ASC 815 Balance Sheet Notional Fair Value Notional Fair Value Interest rate swap agreements Other liabilities $ 200,000 $ (7,968 ) $ 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 gains (losses) included in the consolidated statements of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the years ended December 31, 2017, 2016, and 2015: Years Ended December 31, (Dollars in thousands) Consolidated Statements of 2017 2016 2015 Interest rate swap agreements Net realized investment gains (losses) $ (75 ) $ (1,110 ) $ (6,988 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2017 and 2016, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. As of December 31, 2017 Fair Value Measurements (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 104,680 $ — $ — $ 104,680 Obligations of states and political subdivisions — 95,114 — 95,114 Mortgage-backed securities — 149,350 — 149,350 Commercial mortgage-backed securities — 139,795 — 139,795 Asset-backed securities — 203,701 — 203,701 Corporate bonds — 423,390 — 423,390 Foreign corporate bonds — 125,407 — 125,407 Total fixed maturities 104,680 1,136,757 — 1,241,437 Common stock 140,229 — — 140,229 Total assets measured at fair value (1) $ 244,909 $ 1,136,757 $ — $ 1,381,666 Liabilities: Derivative instruments $ — $ 7,968 $ — $ 7,968 Total liabilities measured at fair value $ — $ 7,968 $ — $ 7,968 (1) Excluded from the table above are limited partnerships of $77.8 million at December 31, 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 December 31, 2017 and 2016 was as follows: December 31, 2017 December 31, 2016 (Dollars in thousands) Carrying Fair Value Carrying Fair Value Margin Borrowing Facility $ 72,230 $ 72,230 $ 66,646 $ 66,646 7.75% Subordinated Notes due 2045 (1) 96,619 100,059 96,497 95,697 7.875% Subordinated Notes due 2047 (2) 125,864 130,429 — — Total $ 294,713 $ 302,718 $ 163,143 $ 162,343 (1) As of December 31,2017 and 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 December 31, 2017, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $4.1 million. |
Changes in Level 3 Investments Measured at Fair Value on a Recurring Basis | The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the year ended December 31, 2017 and 2016: Years Ended (Dollars in thousands) 2017 2016 Beginning balance $ — $ — Total gains (realized / unrealized): Amortization of bond premium and discount, net — 75 Included in realized gains (losses) — 486 Purchases — 27,303 Sales — (27,864 ) Ending balance $ — $ — |
Fair Value and Future Funding Commitments Related to These Investments | The following table provides the fair value and future funding commitments related to these investments at December 31, 2017 and 2016. December 31, 2017 December 31, 2016 (Dollars in thousands) Fair Future Funding Fair Value Future Funding Real Estate Fund, LP (1) $ — $ — $ — $ — European Non-Performing 26,262 14,214 32,922 15,714 Private Middle Market Loan Fund, LP (3) 33,760 10,000 33,199 9,054 Distressed Debt Fund, LP (4) 17,798 33,500 — — Total $ 77,820 $ 57,714 $ 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets | he following table presents details of the Company’s intangible assets as of December 31, 2017: (Dollars in thousands) Description Useful Life Cost Accumulated Net Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 2,724 2,576 Agent relationships 10 years 900 270 630 Trade names 7 years 600 257 343 $ 25,800 $ 3,251 $ 22,549 The following table presents details of the Company’s intangible assets as of December 31, 2016: (Dollars in thousands) Description Useful Life Cost Accumulated Net Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 2,369 2,931 Agent relationships 10 years 900 179 721 Trade names 7 years 600 173 427 $ 25,800 $ 2,721 $ 23,079 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Components of Reinsurance Balances | The Company had the following reinsurance balances as of December 31, 2017 and 2016: (Dollars in thousands) December 31, December 31, Reinsurance receivables, net $ 105,060 $ 143,774 Collateral securing reinsurance receivables (6,584 ) (13,865 ) Reinsurance receivables, net of collateral $ 98,476 $ 129,909 Allowance for uncollectible reinsurance receivables $ 8,040 $ 8,040 Prepaid reinsurance premiums 28,851 42,583 |
Unsecured Reinsurance Receivable that Exceeded Three Percent of Shareholders' Equity | Unsecured reinsurance receivables include amounts receivable for paid and unpaid losses and loss adjustment expenses, less amounts secured by collateral. (Dollars in thousands) Reinsurance Receivables A.M. Best Ratings Munich Re America Corporation $ 48,222 A+ |
Effect of Reinsurance on Premiums Written and Earned | The effect of reinsurance on premiums written and earned is as follows: (Dollars in thousands) Written Earned For the year ended December 31, 2017: Direct business $ 433,922 $ 440,109 Reinsurance assumed 82,412 77,811 Reinsurance ceded (1) (66,154 ) (79,886 ) Net premiums $ 450,180 $ 438,034 For the year ended December 31, 2016: Direct business $ 468,046 $ 466,750 Reinsurance assumed 97,799 98,267 Reinsurance ceded (1) (94,905 ) (96,552 ) Net premiums $ 470,940 $ 468,465 For the year ended December 31, 2015: Direct business $ 458,185 $ 452,441 Reinsurance assumed 132,048 144,554 Reinsurance ceded (1) (88,989 ) (92,852 ) Net premiums $ 501,244 $ 504,143 (1) Includes ceded written premiums of ($1.3) million, $35.3 million, and $55.8 million and ceded earned premiums of $13.5 million, $43.2 million and $59.5 million to American Bankers Insurance Company for the years ended December 31, 2017, 2016, and 2015, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 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. Year Ended December 31, 2017: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 212,386 $ 462,453 $ (158,505 ) $ 516,334 Net premiums written $ 212,432 $ 237,748 $ — $ 450,180 Net premiums earned $ 201,165 $ 236,869 $ — $ 438,034 Net investment income 56,890 24,609 (42,176 ) 39,323 Net realized investment gains (losses) (641 ) 2,217 — 1,576 Other income 216 6,366 — 6,582 Total revenues 257,630 270,061 (42,176 ) 485,515 Losses and Expenses: Net losses and loss adjustment expenses 94,903 174,309 — 269,212 Acquisition costs and other underwriting expenses 89,153 94,580 — 183,733 Corporate and other operating expenses 17,399 8,315 — 25,714 Interest expense 16,740 42,342 (42,176 ) 16,906 Income (loss) before income taxes $ 39,435 $ (49,485 ) $ — $ (10,050 ) Year Ended December 31, 2016: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 201,726 $ 506,061 $ (141,942 ) $ 565,845 Net premiums written $ 201,690 $ 269,250 $ — $ 470,940 Net premiums earned $ 212,325 $ 256,140 $ — $ 468,465 Net investment income 48,807 19,341 (34,165 ) 33,983 Net realized investment gains (losses) (89 ) 21,810 — 21,721 Other income (loss) (224 ) 10,569 — 10,345 Total revenues 260,819 307,860 (34,165 ) 534,514 Losses and Expenses: Net losses and loss adjustment expenses 95,812 168,191 — 264,003 Acquisition costs and other underwriting expenses 94,749 101,901 — 196,650 Corporate and other operating expenses 9,035 8,303 — 17,338 Interest expense 8,312 34,758 (34,165 ) 8,905 Income (loss) before income taxes $ 52,911 $ (5,293 ) $ — $ 47,618 Year Ended December 31, 2015: (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross premiums written $ 345,392 $ 540,500 $ (295,659 ) $ 590,233 Net premiums written $ 345,342 $ 155,902 $ — $ 501,244 Net premiums earned $ 283,448 $ 220,695 $ — $ 504,143 Net investment income 44,534 18,011 (27,936 ) 34,609 Net realized investment losses (1,039 ) (2,335 ) — (3,374 ) Other income (loss) (93 ) 3,493 — 3,400 Total revenues 326,850 239,864 (27,936 ) 538,778 Losses and Expenses: Net losses and loss adjustment expenses 141,444 133,924 — 275,368 Acquisition costs and other underwriting expenses 122,999 78,304 — 201,303 Corporate and other operating expenses 5,928 18,520 — 24,448 Interest expense 4,492 28,357 (27,936 ) 4,913 Income (loss) before income taxes $ 51,987 $ (19,241 ) $ — $ 32,746 |
Components of Income Tax Expense (Benefit) | The following table summarizes the components of income tax expense (benefit): Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Current income tax expense (benefit): Foreign $ 392 $ 330 $ 263 U.S. Federal 127 147 (1,785 ) Total current income tax expense (benefit) 519 477 (1,522 ) Deferred income tax expense (benefit): U.S. tax rate change 17,524 — — U.S. Federal (18,542 ) (2,727 ) (7,201 ) Total deferred income tax (benefit) (1,018 ) (2,727 ) (7,201 ) Total income tax (benefit) $ (499 ) $ (2,250 ) $ (8,723 ) |
Differences in Tax and Estimated Tax Provisions at Weighted Average Tax Rate | The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate: Years Ended December 31, 2017 2016 2015 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average $ (16,928 ) (168.4 %) $ (1,496 ) (3.1 %) $ (6,434 ) (19.6 %) Adjustments: Tax exempt interest (213 ) (2.1 ) (394 ) (0.8 ) (441 ) (1.3 ) Dividend exclusion (571 ) (5.7 ) (617 ) (1.3 ) (784 ) (2.4 ) Tax rate change 17,524 174.4 — — — — Other (311 ) (3.2 ) 257 0.5 (1,064 ) (3.3 ) Effective income tax benefit $ (499 ) (5.0 %) $ (2,250 ) (4.7 %) $ (8,723 ) (26.6 %) |
Tax Effects of Temporary Differences That Give Rise to Significant Portions of Net Deferred Tax Assets | The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at December 31, 2017 and 2016 are presented below: (Dollars in thousands) 2017 2016 Deferred tax assets: Discounted unpaid losses and loss adjustment expenses $ 3,625 $ 7,015 Unearned premiums 5,318 8,802 Section 163(j) carryforward 7,906 8,075 Alternative minimum tax credit carryover — 10,957 Net operating loss carryforward 16,323 3,205 Partnership K1 basis differences 130 238 Capital gain on derivative instruments 1,673 4,033 Investment impairments 1,742 3,419 Stock options 1,740 2,820 Stat-to-GAAP 1,014 1,337 Intercompany transfers 317 808 Other 3,249 4,986 Total deferred tax assets 43,037 55,695 Deferred tax liabilities: Purchase accounting adjustment for American Reliable 7,723 6,095 Intangible assets 2,394 3,942 Unrealized gain on securities available-for-sale 3,105 352 Investment basis differences 211 484 Deferred acquisition costs 1,921 2,941 Depreciation and amortization 285 119 Other 1,202 805 Total deferred tax liabilities 16,841 14,738 Total net deferred tax assets $ 26,196 $ 40,957 |
Liability for Unpaid Losses a47
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Balance at beginning of period $ 651,042 $ 680,047 $ 675,472 Less: Ceded reinsurance receivables 130,439 108,130 123,201 Net balance at beginning of period 520,603 571,917 552,271 Purchased reserves, gross 19,333 2,007 89,489 Less: Purchased reserves ceded (29 ) (45 ) 12,800 Purchase reserves, net of third party reinsurance 19,362 2,052 76,689 Incurred losses and loss adjustment expenses related to: Current year 323,112 321,255 310,066 Prior years (53,900 ) (57,252 ) (34,698 ) Total incurred losses and loss adjustment expenses 269,212 264,003 275,368 Paid losses and loss adjustment expenses related to: Current year 156,325 177,006 164,058 Prior years 115,431 140,363 168,353 Total paid losses and loss adjustment expenses 271,756 317,369 332,411 Net balance at end of period 537,421 520,603 571,917 Plus: Ceded reinsurance receivables 97,243 130,439 108,130 Balance at end of period $ 634,664 $ 651,042 $ 680,047 |
Gross Reserves for Asbestos and Environmental Losses | The following table shows the Company’s gross reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Gross reserve for A&E losses and loss adjustment expenses — beginning of period $ 51,919 $ 53,824 $ 56,535 Plus: Incurred losses and loss adjustment expenses — case reserves 542 (669 ) 2,666 Plus: Incurred losses and loss adjustment expenses — IBNR 928 2,064 (2,663 ) Less: Payments 1,516 3,300 2,714 Gross reserves for A&E losses and loss adjustment expenses — end of period $ 51,873 $ 51,919 $ 53,824 |
Net Reserves for Asbestos and Environmental Losses | The following table shows the Company’s net reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Net reserve for A&E losses and loss adjustment expenses — beginning of period $ 29,890 $ 30,529 $ 31,185 Plus: Incurred losses and loss adjustment expenses — case reserves 769 (125 ) 395 Plus: Incurred losses and loss adjustment expenses — IBNR 198 631 (394 ) Less: Payments 733 1,145 657 Net reserves for A&E losses and loss adjustment expenses — end of period $ 30,124 $ 29,890 $ 30,529 |
Incurred Claims Development | Commercial Lines — Property (Dollars in thousands) Incurred Claims and Allocated Net of Reinsurance For the Years As of December 31, 2017 Accident Year 2015 2016 2017 IBNR (1) Cumulative (unaudited) 2015 $ 63,574 $ 64,722 $ 62,575 $ 2,868 4,649 2016 61,990 61,014 5,097 4,104 2017 44,785 8,583 2,778 Total $ 168,374 (1) Incurred-but-not-reported Commercial Lines — Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2008 $ 138,417 $ 170,855 $ 160,325 $ 149,564 $ 148,019 $ 146,142 $ 138,558 $ 134,514 $ 129,894 $ 126,924 $ 7,096 6,191 2009 93,748 96,956 104,518 104,803 104,392 96,206 94,016 91,297 88,384 7,444 3,896 2010 79,188 101,830 102,252 101,113 94,484 91,368 84,681 82,824 10,785 3,503 2011 115,441 117,602 117,288 115,193 108,720 96,361 84,269 5,701 3,741 2012 61,340 65,911 65,637 63,359 55,137 52,504 11,346 2,379 2013 63,807 68,089 67,702 66,301 64,877 11,435 2,519 2014 61,325 60,227 58,042 56,837 15,139 2,307 2015 57,262 56,620 57,775 17,359 2,010 2016 54,130 53,776 25,895 1,750 2017 54,338 37,994 1,283 Total $ 722,508 (1) Incurred-but-not-reported Personal Lines — Property (Dollars in thousands) Incurred Claims and Allocated Claims As of December 31, 2017 Accident Year 2016 2017 IBNR (1) Cumulative 2016 $ 146,571 $ 144,787 5,418 17,356 2017 148,016 15,743 16,384 Total $ 292,803 (1) Incurred-but-not-reported Personal Lines — Casualty (Dollars in thousands) Incurred Claims and Allocated Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2017 Accident Year 2015 2016 2017 IBNR (1) Cumulative (unaudited) 2015 $ 18,930 $ 20,506 $ 21,850 $ 5,059 1,317 2016 21,476 21,073 11,345 1,370 2017 19,999 15,334 878 Total $ 62,922 (1) Incurred-but-not-reported Reinsurance Lines — Property (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2011 $ 30,963 $ 28,547 $ 26,916 $ 25,994 $ 24,994 $ 24,912 $ 24,786 $ 1,028 — 2012 10,388 10,578 9,279 8,579 8,497 8,397 539 — 2013 15,153 9,948 8,197 6,698 6,345 753 — 2014 21,787 18,861 14,139 13,590 1,264 — 2015 19,877 16,738 12,526 2,977 — 2016 23,646 22,485 10,433 — 2017 43,782 26,239 — Total $ 131,911 (1) Incurred-but-not-reported Reinsurance Lines — Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2008 $ 8,906 $ 8,758 $ 8,988 $ 8,997 $ 10,167 $ 10,340 $ 10,340 $ 9,435 $ 9,835 $ 9,768 $ 291 — 2009 20,706 23,818 25,444 30,533 30,850 31,340 31,419 31,453 31,514 386 — 2010 41,831 53,279 57,916 62,628 61,062 61,792 60,701 60,573 2,015 — 2011 45,726 48,846 44,692 47,980 46,510 43,657 42,968 2,122 — 2012 15,865 15,624 17,123 17,579 17,360 17,348 1,113 — 2013 1,224 1,262 1,172 1,013 974 870 — 2014 1,988 2,095 2,060 1,957 1,954 — 2015 2,908 2,911 2,780 2,779 — 2016 3,627 3,627 3,627 — 2017 4,358 4,358 — Total $ 175,867 (1) Incurred-but-not-reported |
Cumulative Paid Claims Development | Commercial Lines — Property (Dollars in thousands) Cumulative Paid Claims and Allocated Accident Year 2015 2016 2017 (unaudited) 2015 $ 41,942 $ 57,653 $ 58,926 2016 39,643 51,967 2017 28,541 Total 139,434 All outstanding liabilities before 2015, net of reinsurance 7,635 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 36,575 Commercial Lines — Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2008 $ 7,844 $ 34,172 $ 65,700 $ 86,889 $ 100,369 $ 110,145 $ 114,546 $ 116,246 $ 117,797 $ 118,254 2009 5,564 19,154 37,653 53,738 65,721 71,108 75,181 77,771 79,896 2010 5,503 19,926 34,659 50,520 58,913 65,377 67,277 69,615 2011 5,451 21,325 41,282 56,562 64,722 72,087 74,839 2012 3,500 11,884 22,456 31,231 36,360 39,596 2013 6,400 17,881 29,510 38,438 46,272 2014 3,968 15,690 26,268 33,697 2015 3,336 14,584 25,147 2016 4,135 14,027 2017 4,914 Total 506,257 All outstanding liabilities before 2008, net of reinsurance 64,830 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 281,081 Personal Lines — Property (Dollars in thousands) Cumulative Paid Claims For the Years Ended Accident Year 2016 2017 2016 $ 121,899 $ 138,289 2017 114,360 Total 252,649 All outstanding liabilities before 2016, net of reinsurance 4,206 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 44,360 Personal Lines — Casualty (Dollars in thousands) Cumulative Paid Claims and For the Years Ended December 31, Accident Year 2015 2016 2017 (unaudited) 2015 $ 3,439 $ 8,757 $ 12,926 2016 3,507 6,885 2017 2,132 Total 21,943 All outstanding liabilities before 2015, net of reinsurance 11,672 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 52,651 Reinsurance Lines — Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2011 $ 12,044 $ 19,274 $ 20,698 $ 22,060 $ 22,426 $ 22,771 $ 23,096 2012 1,127 5,481 7,221 7,648 7,527 7,584 2013 723 4,008 5,835 5,111 5,255 2014 2,243 9,035 10,460 11,182 2015 742 5,163 6,768 2016 2,071 5,704 2017 2,152 Total 61,741 All outstanding liabilities before 2011, net of reinsurance 322 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 70,492 Reinsurance Lines — Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2008 $ — $ 627 $ 1,955 $ 5,149 $ 5,648 $ 6,832 $ 8,713 $ 8,875 $ 8,919 $ 8,981 2009 1,986 9,759 11,064 12,597 13,652 15,104 30,141 31,019 31,128 2010 10,185 21,447 30,754 36,090 39,123 55,315 55,848 56,960 2011 7,968 20,072 28,495 36,020 38,907 39,815 40,079 2012 5,312 9,435 11,658 15,534 15,696 15,790 2013 123 50 62 65 65 2014 88 47 50 1 2015 107 128 1 2016 — — 2017 — Total 153,005 All outstanding liabilities before 2008, net of reinsurance 1,210 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 24,072 |
Supplementary Information about Average Historical Claims | The following is required supplementary information about average historical claims duration as of December 31, 2017: Average Annual Percentage Year 1 2 3 Commercial Lines — Property 65.2 % 22.7 % 2.0 % The following is required supplementary information about average historical claims duration as of December 31, 2017: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 8 9 10 Commercial Lines — Casualty 7.2 % 18.3 % 20.3 % 16.5 % 11.0 % 7.3 % 3.4 % 2.4 % 1.8 % 0.4 % The following is required supplementary information about average historical claims duration as of December 31, 2017. Average Annual Percentage Payout of Year 1 2 Personal Lines — Property 80.7 % 11.3 % The following is required supplementary information about average historical claims duration as of December 31, 2017: Average Annual Percentage Payout of Year 1 2 3 Personal Lines — Casualty 14.3 % 20.2 % 19.1 % The following is required supplementary information about average historical claims duration as of December 31, 2017: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 Reinsurance Lines — Property 15.7 % 39.0 % 15.7 % 1.1 % 0.8 % 1.0 % 1.3 % The following is required supplementary information about average historical claims duration as of December 31, 2017: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 8 9 10 Reinsurance Lines — Casualty 9.3 % 10.3 % 7.8 % 12.0 % 3.5 % 9.2 % 17.1 % 2.1 % 0.4 % 0.6 % |
Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and Loss Adjustment Expenses in Consolidated Balance Sheets | The reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and loss adjustment expenses in the consolidated balance sheets as of December 31, 2017 is as follows: Net outstanding liabilities Commercial Lines — Property $ 36,575 Commercial Lines — Casualty 281,081 Personal Lines — Property 44,360 Personal Lines — Casualty 52,651 Reinsurance Lines — Property 70,492 Reinsurance Lines — Casualty 24,072 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance 509,231 Reinsurance recoverable on unpaid claims Commercial Lines — Property 8,508 Commercial Lines — Casualty 68,786 Personal Lines — Property 10,608 Personal Lines — Casualty 7,718 Reinsurance Lines — Property — Reinsurance Lines — Casualty 71 Total reinsurance recoverable on unpaid claims 95,691 Other outstanding liabilities Commercial Lines Ceded Allowance 8,040 Unallocated claims adjustment expenses 16,930 Purchase accounting adjustment (1,200 ) Loss Clearing 322 Personal Lines Fronted business ceded to Assurant 2,752 Unallocated claims adjustment expenses 2,190 Loss Clearing (25 ) Reinsurance Lines Unallocated claims adjustment expenses 987 Other (254 ) Total other outstanding liabilities 29,742 Total gross liability for unpaid losses and loss adjustment expenses $ 634,664 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Outstanding Debt | The Company’s outstanding debt consisted of the following at December 31, 2017 and 2016: December 31, (Dollars in thousands) 2017 2016 Margin Borrowing Facility $ 72,230 $ 66,646 7.75% Subordinated Notes due 2045 96,619 96,497 7.875% Subordinated Notes due 2047 125,864 — Total $ 294,713 $ 163,143 |
Amounts Recorded for the Subordinated Notes | The following table represents the amounts recorded for the subordinated notes as of December 31, 2017 and 2016: December 31, 2017 Outstanding Unamortized Net 7.75% Subordinated Notes due 2045 $ 100,000 $ (3,381 ) $ 96,619 7.875% Subordinated Notes due 2047 130,000 (4,136 ) 125,864 $ 230,000 $ (7,517 ) $ 222,483 December 31, 2016 Outstanding Unamortized Net 7.75% Subordinated Notes due 2045 $ 100,000 $ (3,503 ) $ 96,497 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Information with Respect to Ordinary Shares that were Surrendered, Repurchased or Redeemed | The following table provides information with respect to the A ordinary shares that were surrendered, repurchased, or redeemed in 2017: Period (1) Total Number of Shares Purchased or Average Price Paid Per Share Total Number of Shares Plan or Program Approximate Dollar A ordinary shares: January 1-31, 13,656 (2) $ 38.21 — — February 1-28, 15,309 (2) $ 40.18 — — May 1-31, 586 (2) $ 38.49 — — December 1-31, 2017 3,397,031 $ 24.44 Total 3,426,582 $ 24.57 — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. The following table provides information with respect to the A ordinary shares that were surrendered or repurchased in 2016: Period (1) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Plan or Program Approximate Dollar A ordinary shares: January 1-31, 12,410 (2) $ 29.02 — — February 1-29, 15,093 (2) $ 28.25 — — May 1-31, 596 (2) $ 30.56 — — Total 28,099 $ 28.64 — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Hiscox Insurance Company (Bermuda) Ltd. | |
Estimated Earned Premium and Incurred Losses, and Net Balances Due | The Company estimated that the following earned premium and incurred losses related to these agreements have been assumed by Global Indemnity Reinsurance from Hiscox Bermuda: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Assumed earned premium $ 4 $ 27 $ 2,266 Assumed losses and loss adjustment expenses (130 ) (527 ) 509 Net payable balances due from Global Indemnity Reinsurance under this agreement are as follows: As of December 31, (Dollars in thousands) 2017 2016 Net payable balance $ (10 ) $ (107 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Future Minimum Cash Payments Under Non-cancelable Operating Leases | At December 31, 2017, future minimum cash payments under non-cancelable (Dollars in thousands) 2018 $ 3,147 2019 2,192 2020 127 Total $ 5,466 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Award Activity for Stock Options Granted and Weighted Average Exercise Price Per Share | Award activity for stock options granted under the Plan and the weighted average exercise price per share are summarized as follows: Time-Based Options Performance- Based Options Total Weighted Average Exercise Price Per Share Options outstanding at January 1, 2015 612,500 — 612,500 $ 25.38 Options issued — 200,000 200,000 $ 28.37 Options forfeited — — — — Options exercised — — — — Options expired (12,500 ) — (12,500 ) $ 37.70 Options purchased by the Company — — — — Options outstanding at December 31, 2015 600,000 200,000 800,000 $ 25.94 Options issued — — — — Options forfeited — (200,000 ) (200,000 ) $ 28.37 Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2016 600,000 — 600,000 $ 25.13 Options issued — — — — Options forfeited — — — — Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2017 600,000 — 600,000 25.13 Options exercisable at December 31, 2017 300,000 — 300,000 17.87 |
Option Intrinsic values | Option intrinsic values, which are the differences between the fair value of $42.02 at December 31, 2017 and the strike price of the option, are as follows: Number of Shares Weighted Average Strike Price Intrinsic Value Outstanding 600,000 25.13 10.1 million Exercisable 300,000 17.87 (1) 7.2 million Exercised (1) — — — (1) The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. |
Options Exercisable | The options exercisable at December 31, 2017 include the following: Option Price Number of options exercisable $17.87 300,000 Options exercisable at December 31, 2017 300,000 |
Significant Assumptions Used to Estimate Fair Value of Stock Options Granted Using Black Scholes Option Pricing Model | There were no options granted under the Plan in 2017 or 2016. The weighted average fair value of options granted under the Plan was $8.69 in 2015 using a Black-Scholes option-pricing model and the following weighted average assumptions. 2015 Dividend yield 0.0% Expected volatility 31.59% Risk-free interest rate 1.7% Expected option life 5.0 years |
Summary of Range of Exercise Prices of Options Outstanding | The following tables summarize the range of exercise prices of options outstanding at December 31, 2017, 2016, and 2015: Ranges of Exercise Prices Outstanding at December 31, 2017 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $17.87 3.7 years $30.00 — $37.70 300,000 (1) $32.38 6.1 years Total 600,000 (1) — the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. Ranges of Exercise Prices Outstanding at December 31, 2016 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $17.87 4.7 years $30.00 — $37.70 300,000 (1) $32.38 7.1 years Total 600,000 (1) — the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. Ranges of Exercise Prices Outstanding at December 31, 2015 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $17.87 5.7 years $20.00 — $29.99 200,000 $28.37 9.0 years $30.00 — $37.70 300,000 (1) $32.38 8.1 years Total 800,000 (1) — the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. |
Summary of Restricted Stock Awards Since Inception | The following table summarizes the restricted stock grants since the 2003 inception of the original share incentive plan. Restricted Stock Awards Year Employees Directors Total Inception through 2014 806,762 441,888 1,248,650 2015 138,507 36,321 174,828 2016 121,346 35,185 156,531 2017 22,503 27,121 49,624 1,089,118 540,515 1,629,633 |
Summary of Non-Vested Restricted Shares Activity | The following table summarizes the non-vested Number of Shares Weighted Average Price Per Share Non-vested 172,275 $ 23.76 Shares issued 174,828 $ 28.24 Shares vested (70,503 ) $ 25.31 Shares forfeited (16,695 ) $ 24.11 Non-vested 259,905 $ 26.33 Shares issued 156,531 $ 29.44 Shares vested (111,205 ) $ 26.11 Shares forfeited (5,633 ) $ 27.25 Non-vested 299,598 $ 28.02 Shares issued 49,624 $ 39.42 Shares vested (116,111 ) $ 29.75 Shares forfeited (20,299 ) $ 28.63 Non-vested 212,812 $ 29.67 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share. Years Ended December 31, (Dollars in thousands, except share and per share 2017 2016 2015 Net income (loss) $ (9,551 ) $ 49,868 $ 41,469 Basic earnings per share: Weighted average shares outstanding — basic 17,308,663 17,246,717 24,253,657 Net income (loss) per share $ (0.55 ) $ 2.89 $ 1.71 Diluted earnings per share: Weighted average shares outstanding — diluted (1) 17,308,663 17,547,061 24,505,851 Net income (loss) per share $ (0.55 ) $ 2.84 $ 1.69 (1) For the year ended December 31, 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: Years Ended December 31, 2017 2016 2015 Weighted average shares for basic earnings per share 17,308,663 17,246,717 24,253,657 Non-vested — 187,526 148,669 Options — 112,818 103,525 Weighted average shares for diluted earnings per share 17,308,663 17,547,061 24,505,851 |
Statutory Financial Informati54
Statutory Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Information for United States Insurance Companies & Global Indemnity Reinsurance, Net of Intercompany Eliminations, as Determined in Accordance With SAP and Bermuda | The following is selected information for the Company’s U.S. insurance companies, net of intercompany eliminations, where applicable, as determined in accordance with SAP: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Statutory capital and surplus, as of end of period $ 274,586 $ 323,144 $ 318,101 Statutory net income (loss) ($ 19,019 ) 35,618 48,633 |
Global Indemnity Reinsurance | |
Information for United States Insurance Companies & Global Indemnity Reinsurance, Net of Intercompany Eliminations, as Determined in Accordance With SAP and Bermuda | The following is selected information for Global Indemnity Reinsurance, net of intercompany eliminations, where applicable, as determined in accordance with the Bermuda Insurance Act 1978: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Statutory capital and surplus, as of end of period $ 908,433 $ 838,923 $ 713,842 Statutory net income 29,647 32,768 864 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Business Segment Information | The following are tabulations of business segment information for the years ended December 31, 2017, 2016, and 2015. Corporate information is included to reconcile segment data to the consolidated financial statements. 2017: (Dollars in thousands) Commercial Personal Reinsurance Operations (2) Total Revenues: Gross premiums written $ 212,670 $ 249,777 (6) $ 53,887 $ 516,334 Net premiums written $ 186,448 $ 209,799 $ 53,933 $ 450,180 Net premiums earned $ 178,798 $ 215,983 $ 43,253 $ 438,034 Other income 78 6,288 216 6,582 Total revenues 178,876 222,271 43,469 444,616 Losses and Expenses: Net losses and loss adjustment expenses 62,834 165,798 40,580 269,212 Acquisition costs and other underwriting expenses 75,990 (3) 93,113 (4) 14,630 183,733 Income (loss) from segments $ 40,052 $ (36,640 ) $ (11,741 ) (8,329 ) Unallocated Items: Net investment income 39,323 Net realized investment gains 1,576 Corporate and other operating expenses (25,714 ) Interest expense (16,906 ) Loss before income taxes (10,050 ) Income tax benefit 499 Net loss $ (9,551 ) Total assets $ 905,184 $ 467,525 $ 628,960 (5) $ 2,001,669 (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 $714 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $862 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 ($1,338) of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. 2016: (Dollars in thousands) Commercial Personal Reinsurance Operations (2) Total Revenues: Gross premiums written $ 203,061 $ 302,947 (6) $ 59,837 $ 565,845 Net premiums written $ 182,956 $ 228,183 $ 59,801 $ 470,940 Net premiums earned $ 189,342 $ 237,555 $ 41,568 $ 468,465 Other income (loss) 6,857 3,712 (224 ) 10,345 Total revenues 196,199 241,267 41,344 478,810 Losses and Expenses: Net losses and loss adjustment expenses 75,401 174,528 14,074 264,003 Acquisition costs and other underwriting expenses 81,477 (3) 99,109 (4) 16,064 196,650 Income (loss) from segments $ 39,321 $ (32,370 ) $ 11,206 18,157 Unallocated Items: Net investment income 33,983 Net realized investment gains 21,721 Corporate and other operating expenses (17,338 ) Interest expense (8,905 ) Income before income taxes 47,618 Income tax benefit 2,250 Net income $ 49,868 Total assets $ 790,564 $ 470,508 $ 711,874 (5) $ 1,972,946 (1) Includes business ceded to the Company’s Reinsurance Operations. (2) External business only, excluding business assumed from affiliates. (3) Includes federal excise tax of $756 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $948 relating to cessions from Personal Lines to Reinsurance Operations. (5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries (6) Includes $35,334 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. 2015: (Dollars in thousands) Commercial Personal Reinsurance Operations (2) Total Revenues: Gross premiums written $ 213,353 $ 327,147 (6) $ 49,733 $ 590,233 Net premiums written $ 198,404 $ 253,157 $ 49,683 $ 501,244 Net premiums earned $ 198,404 $ 253,948 $ 51,791 $ 504,143 Other income (loss) — 3,493 (93 ) 3,400 Total revenues 198,404 257,441 51,698 507,543 Losses and Expenses: Net losses and loss adjustment expenses 98,471 163,045 13,852 275,368 Acquisition costs and other underwriting expenses 84,623 (3) 97,687 (4) 18,993 201,303 Income (loss) from segments $ 15,310 $ (3,291 ) $ 18,853 30,872 Unallocated Items: Net investment income 34,609 Net realized investment losses (3,374 ) Corporate and other operating expenses (24,448 ) Interest expense (4,913 ) Income before income taxes 32,746 Income tax benefit 8,723 Net income $ 41,469 Total assets $ 714,688 $ 524,912 $ 717,694 (5) $ 1,957,294 (1) Includes business ceded to the Company’s Reinsurance Operations. (2) External business only, excluding business assumed from affiliates. (3) Includes federal excise tax of $1,047 relating to cessions from Commercial Lines to Reinsurance Operations. (4) Includes federal excise tax of $1,270 relating to cessions from Personal Lines to Reinsurance Operations. (5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries (6) Includes $55,829 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. |
Supplemental Cash Flow Inform56
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Net Federal Income Taxes and Cash Interest Paid | The Company paid the following net federal income taxes and interest for 2017, 2016, and 2015: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Federal income taxes paid $ 133 $ 195 $ 104 Federal income taxes recovered 19 4,889 2 Interest paid 14,504 8,771 3,926 |
American Reliable Insurance Company | |
Liabilities Assumed on Acquisition | On January 1, 2015, Global Indemnity Group, Inc. acquired 100% of the voting equity interest of American Reliable. In conjunction with the acquisition, fair value of assets acquired and liabilities assumed by the Company were as follows: (Dollars in thousands) Fair value of assets acquired (including goodwill) $ 383,668 Liabilities assumed 283,871 |
Summary of Quarterly Financia57
Summary of Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Quarterly Performance | An unaudited summary of the Company’s 2017 and 2016 quarterly performance is as follows: Year Ended December 31, 2017 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 113,126 $ 107,073 $ 108,619 $ 109,216 Net investment income 8,644 8,840 10,134 11,705 Net realized investment gains (losses) 775 (662 ) (963 ) 2,426 Net losses and loss adjustment expenses 62,561 57,700 82,395 66,556 Acquisition costs and other underwriting expenses 46,551 43,457 45,002 48,723 Income (loss) before income taxes 9,280 7,753 (16,779 ) (10,304 ) Net income (loss) 12,282 10,089 (8,924 ) (22,998 ) Per share data — Diluted: Net income (loss) $ 0.70 $ 0.57 $ (0.51 ) $ (1.33 ) Year Ended December 31, 2016 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 121,636 $ 117,804 $ 119,553 $ 109,472 Net investment income 9,746 6,562 8,795 8,880 Net realized investment gains (losses) (7,493 ) (3,492 ) 1,928 30,778 Net losses and loss adjustment expenses 64,784 78,111 72,162 48,946 Acquisition costs and other underwriting expenses 52,090 48,542 48,129 47,889 Income (loss) before income taxes 1,953 (11,468 ) 10,598 46,535 Net income (loss) 7,125 (5,165 ) 9,535 38,373 Per share data — Diluted: Net income (loss) $ 0.41 $ ( 0.30 ) $ 0.54 $ 2.18 |
Principles of Consolidation a58
Principles of Consolidation and Basis of Presentation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 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 |
Redomestication - Additional In
Redomestication - Additional Information (Detail) - Global Indemnity Limited | Dec. 31, 2017 |
Ordinary Shares A | |
Entity Location [Line Items] | |
Ordinary share exchange | 1 |
Ordinary Shares B | |
Entity Location [Line Items] | |
Ordinary share exchange | 1 |
Summary of Significant Accoun60
Summary of Significant Accounting Policies - Additional Information (Detail) | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2017USD ($)Entity | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Significant Accounting Policies [Line Items] | ||||||
Limited liability partnerships, percentage of ownership interest | 3.00% | |||||
Investments in other invested assets | $ 77,820,000 | $ 66,121,000 | ||||
Cash and cash equivalents | 74,414,000 | 75,110,000 | $ 67,037,000 | $ 58,823,000 | ||
Allowance for bad debts | 2,200,000 | 1,900,000 | ||||
Impairment of goodwill | 0 | 0 | ||||
Impairments of indefinite lived intangible assets | 0 | 0 | ||||
Impairment of definite lived intangible assets | 0 | 0 | ||||
Amortization of deferred acquisition costs | 109,000,000 | 114,300,000 | 86,200,000 | |||
Premium deficiency charges | 300,000 | 300,000 | 200,000 | |||
Premium deficiency reserve | 0 | 0 | ||||
Net foreign currency transaction gains (losses) | $ 2,100,000 | (700,000) | 400,000 | |||
Proceeds from sale of capital stock | $ 18,700,000 | $ 18,700,000 | ||||
Pretax gain on sale of capital stock | $ 6,900,000 | $ 6,900,000 | 6,857,000 | |||
Variable Interest Entity, Not Primary Beneficiary | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of VIEs | Entity | 3 | |||||
Ownership interest exceeds respective investments | 3.00% | |||||
Allowance for Reinsurance Recoverable | ||||||
Significant Accounting Policies [Line Items] | ||||||
Allowance for uncollectible reinsurance receivables | $ 8,040,000 | 8,040,000 | $ 9,675,000 | $ 9,350,000 | ||
Money Market Funds | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cash and cash equivalents | $ 67,100,000 | $ 52,000,000 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 29, 2017 | Jan. 01, 2015 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||||||||||||
Revenue | $ 485,515 | $ 534,514 | $ 538,778 | ||||||||||||
Pre-tax (loss) | $ (10,304) | $ (16,779) | $ 7,753 | $ 9,280 | $ 46,535 | $ 10,598 | $ (11,468) | $ 1,953 | (10,050) | 47,618 | 32,746 | ||||
Goodwill | $ 6,521 | $ 6,521 | 6,521 | 6,521 | |||||||||||
Intangible assets | $ 32,000 | ||||||||||||||
Amortization of definite lived intangible assets | $ 500 | $ 500 | 500 | ||||||||||||
Business combination, employee related compensation cost paid, which were included in the fair value of net assets acquired | 1,600 | ||||||||||||||
Fox Paine and Company | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Investment advisory fee | $ 11,000 | ||||||||||||||
American Reliable Insurance Company | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Revenue | 259,000 | ||||||||||||||
Pre-tax (loss) | (4,200) | ||||||||||||||
Goodwill | 1,701 | $ 1,701 | |||||||||||||
Intangible assets | $ 32,000 | 32,000 | |||||||||||||
Intangible assets arising from acquisition deductible for income tax, period | 15 years | ||||||||||||||
Amortization of definite lived intangible assets | $ 25,700 | ||||||||||||||
American Bankers Insurance Company | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Interest rate on dispute resolution agreement | 5.00% | 5.00% | |||||||||||||
Global Indemnity Group Inc | American Reliable Insurance Company | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Aggregate purchase price | $ 113,700 | ||||||||||||||
Business acquisition date | Jan. 1, 2015 | ||||||||||||||
Acquired voting equity interest | 100.00% | ||||||||||||||
Customary insurance liabilities, obligations, and mandates | $ 283,900 | ||||||||||||||
Estimated purchase price | $ 99,800 | ||||||||||||||
Global Indemnity Group Inc | American Reliable Insurance Company | Fox Paine and Company | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Investment bank fee as a percentage of the amount paid plus required capital to operate American Reliable on a standalone basis | 3.00% | ||||||||||||||
Investment advisory fee | $ 1,500 | ||||||||||||||
Aggregate investment advisory fee | $ 6,500 | $ 6,500 | |||||||||||||
Ordinary shares of Global Indemnity issued to pay fees | 267,702 | 267,702 | |||||||||||||
Global Indemnity Group Inc | Business Acquisition Cost | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business combination, additional costs | $ 1,800 | $ 3,300 | $ 5,100 |
Estimated Fair Value of Assets
Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2015 | |
ASSETS: | ||||
Intangible assets | $ 32,000 | |||
LIABILITIES: | ||||
Goodwill | $ 6,521 | $ 6,521 | ||
American Reliable Insurance Company | ||||
ASSETS: | ||||
Investments | $ 226,458 | |||
Cash and cash equivalents | 21,360 | |||
Premiums receivables, net | 26,102 | |||
Accounts receivable | 11,311 | |||
Reinsurance receivables | 13,842 | |||
Prepaid reinsurance premiums | 43,506 | |||
Intangible assets | 32,000 | |||
Deferred federal income taxes | 915 | |||
Other assets | 6,473 | |||
Total assets | 381,967 | |||
LIABILITIES: | ||||
Unearned premiums | 172,234 | |||
Unpaid losses and loss adjustment expenses | 89,489 | |||
Reinsurance balances payable | 13,219 | |||
Contingent commissions | 3,903 | |||
Other liabilities | 5,026 | |||
Total liabilities | 283,871 | |||
Estimated fair value of net assets acquired | 98,096 | |||
Purchase price | 99,797 | |||
Goodwill | $ 1,701 |
Valuation of Intangible Assets
Valuation of Intangible Assets (Detail) $ in Thousands | Jan. 01, 2015USD ($) |
Acquired Intangible Assets [Line Items] | |
Amount | $ 32,000 |
State insurance licenses | |
Acquired Intangible Assets [Line Items] | |
Amount | 5,000 |
Value of business acquired | |
Acquired Intangible Assets [Line Items] | |
Amount | $ 25,500 |
Value of business acquired | Maximum | |
Acquired Intangible Assets [Line Items] | |
Useful Life | 1 year |
Agent Relationships | |
Acquired Intangible Assets [Line Items] | |
Useful Life | 10 years |
Amount | $ 900 |
Trade names | |
Acquired Intangible Assets [Line Items] | |
Useful Life | 7 years |
Amount | $ 600 |
Intangible Assets Arising from
Intangible Assets Arising from Acquisitions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Intangible Assets Amortization [Line Items] | |||
Cost and Net Value | $ 19,000 | $ 19,000 | |
Accumulated Amortization | 3,251 | 2,721 | |
Net Value | $ 22,549 | $ 23,079 | |
Agent Relationships | |||
Acquired Intangible Assets Amortization [Line Items] | |||
Useful Life | 10 years | 10 years | |
Cost | $ 900 | $ 900 | |
Accumulated Amortization | $ 270 | $ 179 | |
Trade names | |||
Acquired Intangible Assets Amortization [Line Items] | |||
Useful Life | 7 years | 7 years | |
Cost | $ 600 | $ 600 | |
Accumulated Amortization | 257 | 173 | |
State insurance licenses | |||
Acquired Intangible Assets Amortization [Line Items] | |||
Cost and Net Value | $ 10,000 | $ 10,000 | |
American Reliable Insurance Company | |||
Acquired Intangible Assets Amortization [Line Items] | |||
Cost | $ 32,000 | ||
Accumulated Amortization | 25,676 | ||
Net Value | 6,324 | ||
American Reliable Insurance Company | Value of Business Acquired | |||
Acquired Intangible Assets Amortization [Line Items] | |||
Cost | 25,500 | ||
Accumulated Amortization | 25,500 | ||
Net Value | $ 0 | ||
American Reliable Insurance Company | Agent Relationships | |||
Acquired Intangible Assets Amortization [Line Items] | |||
Useful Life | 10 years | ||
Cost | $ 900 | ||
Accumulated Amortization | 90 | ||
Net Value | $ 810 | ||
American Reliable Insurance Company | Trade names | |||
Acquired Intangible Assets Amortization [Line Items] | |||
Useful Life | 7 years | ||
Cost | $ 600 | ||
Accumulated Amortization | 86 | ||
Net Value | $ 514 | ||
American Reliable Insurance Company | Maximum | Value of Business Acquired | |||
Acquired Intangible Assets Amortization [Line Items] | |||
Useful Life | 1 year | ||
American Reliable Insurance Company | State insurance licenses | |||
Acquired Intangible Assets Amortization [Line Items] | |||
Cost and Net Value | $ 5,000 |
Expected Amortization Expense R
Expected Amortization Expense Related to American Reliable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | $ 529 | |
2,017 | 529 | |
2,018 | 529 | |
2,019 | 529 | |
2,020 | $ 443 | |
American Reliable Insurance Company | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | $ 176 | |
2,017 | 176 | |
2,018 | 176 | |
2,019 | 176 | |
2,020 | $ 176 |
Fair Value, Gross Contractual A
Fair Value, Gross Contractual Amounts Due, and Contractual Cash Flows Not Expected to be Collected of Acquired Receivables (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Premium Receivables | |
Business Acquisition [Line Items] | |
Acquired receivables, Fair Value | $ 26,102 |
Acquired receivables, Gross Contractual Amounts Due | 26,896 |
Acquired receivables, Contractual cash flows not expected to be collected | 794 |
Accounts Receivable | |
Business Acquisition [Line Items] | |
Acquired receivables, Fair Value | 11,311 |
Acquired receivables, Gross Contractual Amounts Due | 11,311 |
Reinsurance Receivables | |
Business Acquisition [Line Items] | |
Acquired receivables, Fair Value | 13,842 |
Acquired receivables, Gross Contractual Amounts Due | $ 13,842 |
Schedule of Amortized Cost and
Schedule of Amortized Cost and Estimated Fair Value of Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 1,445,879 | $ 1,426,975 | |
Gross Unrealized Gains | 23,021 | 9,158 | |
Gross Unrealized Losses | (9,414) | (9,424) | |
Estimated Fair Value | 1,459,486 | 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 | 124,915 | 119,515 | |
Gross Unrealized Gains | 18,574 | 3,445 | |
Gross Unrealized Losses | (3,260) | (2,403) | |
Estimated Fair Value | 140,229 | 120,557 | |
Other Invested Assets | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 77,820 | 66,121 | |
Estimated Fair Value | 77,820 | 66,121 | |
Fixed Maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 1,243,144 | 1,241,339 | |
Gross Unrealized Gains | 4,447 | 5,713 | |
Gross Unrealized Losses | (6,154) | (7,021) | |
Estimated Fair Value | 1,241,437 | 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 | 105,311 | 71,517 | |
Gross Unrealized Gains | 562 | 763 | |
Gross Unrealized Losses | (1,193) | (233) | |
Estimated Fair Value | 104,680 | 72,047 | |
Fixed Maturities | Obligations of States and Political Subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 94,947 | 155,402 | |
Gross Unrealized Gains | 441 | 1,423 | |
Gross Unrealized Losses | (274) | (379) | |
Estimated Fair Value | 95,114 | 156,446 | |
Fixed Maturities | Mortgage Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 150,237 | 88,131 | |
Gross Unrealized Gains | 404 | 895 | |
Gross Unrealized Losses | (1,291) | (558) | |
Estimated Fair Value | 149,350 | 88,468 | |
Fixed Maturities | Asset-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 203,827 | 233,890 | |
Gross Unrealized Gains | 267 | 684 | |
Gross Unrealized Losses | (393) | (583) | |
Estimated Fair Value | 203,701 | 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 | 140,761 | 184,821 | |
Gross Unrealized Gains | 101 | 118 | |
Gross Unrealized Losses | (1,067) | (1,747) | |
Estimated Fair Value | 139,795 | 183,192 | |
Fixed Maturities | Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 422,486 | 381,209 | |
Gross Unrealized Gains | 2,295 | 1,666 | |
Gross Unrealized Losses | (1,391) | (2,848) | |
Estimated Fair Value | 423,390 | 380,027 | |
Fixed Maturities | Foreign Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 125,575 | 126,369 | |
Gross Unrealized Gains | 377 | 164 | |
Gross Unrealized Losses | (545) | (673) | |
Estimated Fair Value | $ 125,407 | $ 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 ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | $ 9,414,000 | $ 9,424,000 | |
Gross unrealized losses for 12 months or greater | [1] | 1,843,000 | $ 891,000 |
Insurance enhanced asset-backed, commercial mortgage-backed, and credit securities | 33,900,000 | ||
Investments in insurance enhanced municipal bonds | 1,582,000 | ||
Ratings without insurance | 0 | ||
Investments in asset-backed, commercial mortgage-backed securities and taxable municipal bonds | $ 32,300,000 | ||
Asset backed and taxable municipal bonds as a percentage of total cash and invested assets | 2.10% | ||
Maximum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in a single issuer as a percentage of shareholders' equity | 5.00% | 5.00% | |
Pre-Refunded Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in insurance enhanced municipal bonds | $ 0 | ||
Municipal Bond Insurance Association | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in asset-backed, commercial mortgage-backed securities and taxable municipal bonds | 6,400,000 | ||
Assured Guaranty Corporation | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in asset-backed, commercial mortgage-backed securities and taxable municipal bonds | 15,500,000 | ||
Taxable Municipal Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in asset-backed, commercial mortgage-backed securities and taxable municipal bonds | 21,800,000 | ||
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 | ||
AA Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investments in insurance enhanced municipal bonds | $ 1,600,000 | ||
Insurance enhanced municipal bonds as a percentage of total cash and invested assets | 0.10% | ||
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 | $ 26,300,000 | $ 32,900,000 | |
Variable interest entities, maximum exposure to loss | 40,500,000 | 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 | 33,800,000 | 33,200,000 | |
Variable interest entities, maximum exposure to loss | 43,800,000 | 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 | 17,800,000 | ||
Variable interest entities, maximum exposure to loss | 51,300,000 | ||
Asset-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | $ 393,000 | ||
Weighted average credit enhancement | 23.40% | ||
Investments in asset-backed, commercial mortgage-backed securities and taxable municipal bonds | $ 100,000 | ||
Asset-backed Securities | AA Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses for 12 months or greater | 22,000 | ||
Common Shares | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 3,260,000 | $ 2,403,000 | |
U.S. Treasury and Agency Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 1,193,000 | ||
U.S. Treasury and Agency Obligations | AA+ Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses for 12 months or greater | 231,000 | ||
Obligations of States and Political Subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 274,000 | ||
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 | 125,000 | ||
Mortgage Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 1,291,000 | ||
Mortgage Backed Securities | AA+ Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses for 12 months or greater | $ 44,000 | ||
Percentage of unrealized losses for 12 months or greater | 95.50% | ||
Commercial Mortgage-Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | $ 1,067,000 | ||
Weighted average credit enhancement | 24.70% | ||
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 | 544,000 | ||
Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 1,391,000 | ||
Corporate Bonds | Investment Grade Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses for 12 months or greater | 637,000 | ||
Foreign Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses | 545,000 | ||
Foreign Corporate Bonds | Investment Grade Rating | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized losses for 12 months or greater | $ 240,000 | ||
[1] | Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. |
Summary of Amortized Cost and E
Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | $ 70,222 | |
Due in one year through five years, Amortized Cost | 435,122 | |
Due in five years through ten years, Amortized Cost | 235,233 | |
Due in ten years through fifteen years, Amortized Cost | 2,187 | |
Due after fifteen years, Amortized Cost | 5,555 | |
Fixed maturities, amortized cost | 1,243,144 | $ 1,241,339 |
Due in one year or less, Estimated Fair value | 70,165 | |
Due in one year through five years, Estimated Fair value | 434,078 | |
Due in five years through ten years, Estimated Fair value | 236,552 | |
Due in ten years through fifteen years, Estimated Fair value | 2,205 | |
Due after fifteen years, Estimated Fair value | 5,591 | |
Fixed Maturities, estimated fair value | 1,241,437 | $ 1,240,031 |
Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 150,237 | |
Estimated Fair value | 149,350 | |
Asset-backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 203,827 | |
Estimated Fair value | 203,701 | |
Commercial Mortgage-Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 140,761 | |
Estimated Fair value | $ 139,795 |
Summary of Securities with Gros
Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | $ 655,942 | $ 601,410 | |
Less than 12 months, Gross Unrealized Losses | (7,571) | (8,533) | |
12 months or longer, Fair Value | [1] | 139,400 | 103,870 |
12 months or longer, Gross Unrealized Losses | [1] | (1,843) | (891) |
Total, Fair Value | 795,342 | 705,280 | |
Total, Gross Unrealized Losses | (9,414) | (9,424) | |
U.S. Treasury and Agency Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (1,193) | ||
Obligations of States and Political Subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (274) | ||
Mortgage Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (1,291) | ||
Asset-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (393) | ||
Commercial Mortgage-Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (1,067) | ||
Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (1,391) | ||
Foreign Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total, Gross Unrealized Losses | (545) | ||
Common Shares | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 32,759 | 57,439 | |
Less than 12 months, Gross Unrealized Losses | (3,260) | (2,403) | |
Total, Fair Value | 32,759 | 57,439 | |
Total, Gross Unrealized Losses | (3,260) | (2,403) | |
Fixed Maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 623,183 | 543,971 | |
Less than 12 months, Gross Unrealized Losses | (4,311) | (6,130) | |
12 months or longer, Fair Value | [1] | 139,400 | 103,870 |
12 months or longer, Gross Unrealized Losses | [1] | (1,843) | (891) |
Total, Fair Value | 762,583 | 647,841 | |
Total, Gross Unrealized Losses | (6,154) | (7,021) | |
Fixed Maturities | U.S. Treasury and Agency Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 79,403 | 39,570 | |
Less than 12 months, Gross Unrealized Losses | (962) | (233) | |
12 months or longer, Fair Value | [1] | 17,469 | |
12 months or longer, Gross Unrealized Losses | [1] | (231) | |
Total, Fair Value | 96,872 | 39,570 | |
Total, Gross Unrealized Losses | (1,193) | (233) | |
Fixed Maturities | Obligations of States and Political Subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 34,537 | 46,861 | |
Less than 12 months, Gross Unrealized Losses | (149) | (369) | |
12 months or longer, Fair Value | [1] | 12,060 | 670 |
12 months or longer, Gross Unrealized Losses | [1] | (125) | (10) |
Total, Fair Value | 46,597 | 47,531 | |
Total, Gross Unrealized Losses | (274) | (379) | |
Fixed Maturities | Mortgage Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 127,991 | 52,780 | |
Less than 12 months, Gross Unrealized Losses | (1,247) | (541) | |
12 months or longer, Fair Value | [1] | 1,866 | 298 |
12 months or longer, Gross Unrealized Losses | [1] | (44) | (17) |
Total, Fair Value | 129,857 | 53,078 | |
Total, Gross Unrealized Losses | (1,291) | (558) | |
Fixed Maturities | Asset-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 97,817 | 62,737 | |
Less than 12 months, Gross Unrealized Losses | (371) | (493) | |
12 months or longer, Fair Value | [1] | 6,423 | 23,937 |
12 months or longer, Gross Unrealized Losses | [1] | (22) | (90) |
Total, Fair Value | 104,240 | 86,674 | |
Total, Gross Unrealized Losses | (393) | (583) | |
Fixed Maturities | Commercial Mortgage-Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 83,051 | 94,366 | |
Less than 12 months, Gross Unrealized Losses | (523) | (1,090) | |
12 months or longer, Fair Value | [1] | 27,976 | 69,747 |
12 months or longer, Gross Unrealized Losses | [1] | (544) | (657) |
Total, Fair Value | 111,027 | 164,113 | |
Total, Gross Unrealized Losses | (1,067) | (1,747) | |
Fixed Maturities | Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 147,064 | 171,621 | |
Less than 12 months, Gross Unrealized Losses | (754) | (2,731) | |
12 months or longer, Fair Value | [1] | 53,024 | 9,218 |
12 months or longer, Gross Unrealized Losses | [1] | (637) | (117) |
Total, Fair Value | 200,088 | 180,839 | |
Total, Gross Unrealized Losses | (1,391) | (2,848) | |
Fixed Maturities | Foreign Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 53,320 | 76,036 | |
Less than 12 months, Gross Unrealized Losses | (305) | (673) | |
12 months or longer, Fair Value | [1] | 20,582 | |
12 months or longer, Gross Unrealized Losses | [1] | (240) | |
Total, Fair Value | 73,902 | 76,036 | |
Total, Gross Unrealized Losses | $ (545) | $ (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 | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
OTTI losses, gross | $ (31) | $ (259) | $ (24) |
Portion of loss recognized in other comprehensive income (pre-tax) | 0 | 0 | 0 |
Net impairment losses on fixed maturities recognized in earnings | (31) | (259) | (24) |
Equity securities | (2,575) | (6,474) | (7,311) |
Total | $ (2,606) | $ (6,733) | $ (7,335) |
Schedule of Credit Losses Recog
Schedule of Credit Losses Recognized in Earnings (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Balance at beginning of period | $ 31 | $ 31 | $ 50 |
Additions where no OTTI was previously recorded | 0 | 0 | 0 |
Additions where an OTTI was previously recorded | 0 | 0 | 0 |
Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery | 0 | 0 | 0 |
Reductions reflecting increases in expected cash flows to be collected | 0 | 0 | 0 |
Reductions for securities sold during the period | (18) | (19) | |
Balance at end of period | $ 13 | $ 31 | $ 31 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income, Net of Tax (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | |||
Foreign currency fluctuations | $ 551 | ||
Deferred taxes | (5,175) | $ (352) | |
Accumulated other comprehensive income, net of tax | 8,983 | (618) | $ 4,078 |
Fixed Maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Net unrealized gains (losses) | (1,707) | (1,308) | |
Common Shares | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Net unrealized gains (losses) | $ 15,314 | $ 1,042 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (618) | $ 4,078 | |
Other comprehensive income (loss) before reclassification | 10,449 | 10,113 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (848) | (14,809) | |
Other comprehensive income (loss), net of tax | 9,601 | (4,696) | $ (19,306) |
Ending balance | 8,983 | (618) | 4,078 |
Unrealized Gains and Losses on Available for Sale Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (554) | 4,200 | |
Other comprehensive income (loss) before reclassification | 9,455 | 10,374 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (629) | (15,128) | |
Other comprehensive income (loss), net of tax | 8,826 | (4,754) | |
Ending balance | 8,272 | (554) | 4,200 |
Foreign Currency Items | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (64) | (122) | |
Other comprehensive income (loss) before reclassification | 994 | (261) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (219) | 319 | |
Other comprehensive income (loss), net of tax | 775 | 58 | |
Ending balance | $ 711 | $ (64) | $ (122) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other net realized investment (gains) losses | $ 4,182 | $ 28,454 | $ 3,961 | ||||||||
Other than temporary impairment losses on investments | (2,606) | (6,733) | (7,335) | ||||||||
Income (loss) before income taxes | $ (10,304) | $ (16,779) | $ 7,753 | $ 9,280 | $ 46,535 | $ 10,598 | $ (11,468) | $ 1,953 | (10,050) | 47,618 | 32,746 |
Income tax expense (benefit) | 499 | 2,250 | 8,723 | ||||||||
Net income | $ (22,998) | $ (8,924) | $ 10,089 | $ 12,282 | $ 38,373 | $ 9,535 | $ (5,165) | $ 7,125 | (9,551) | 49,868 | $ 41,469 |
Total reclassifications, net of tax | (848) | (14,809) | |||||||||
Unrealized Gains and Losses on Available for Sale Securities | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications, net of tax | (629) | (15,128) | |||||||||
Foreign Currency Items | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications, net of tax | (219) | 319 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available for Sale Securities | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other net realized investment (gains) losses | (3,921) | (30,055) | |||||||||
Other than temporary impairment losses on investments | 2,606 | 6,733 | |||||||||
Income (loss) before income taxes | (1,315) | (23,322) | |||||||||
Income tax expense (benefit) | 686 | 8,194 | |||||||||
Net income | (629) | (15,128) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Items | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other net realized investment (gains) losses | (336) | 491 | |||||||||
Income tax expense (benefit) | 117 | (172) | |||||||||
Net income | $ (219) | $ 319 |
Components of Net Realized Inve
Components of Net Realized Investment Gains (Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Total net realized investment gains (losses) | $ 2,426 | $ (963) | $ (662) | $ 775 | $ 30,778 | $ 1,928 | $ (3,492) | $ (7,493) | $ 1,576 | $ 21,721 | $ (3,374) | |
Not Designated as Hedging Instrument | Interest Rate Swap | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Gross realized gains | 3,555 | 3,733 | ||||||||||
Gross realized losses | (3,630) | (4,843) | (6,988) | |||||||||
Total net realized investment gains (losses) | [1] | (75) | (1,110) | (6,988) | ||||||||
Fixed Maturities | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Gross realized gains | 4,066 | 2,947 | 3,565 | |||||||||
Gross realized losses | (3,387) | (691) | (2,180) | |||||||||
Total net realized investment gains (losses) | 679 | 2,256 | 1,385 | |||||||||
Common Shares | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Gross realized gains | 4,178 | 28,785 | 10,379 | |||||||||
Gross realized losses | (3,206) | (8,210) | (8,246) | |||||||||
Total net realized investment gains (losses) | $ 972 | $ 20,575 | 2,133 | |||||||||
Preferred Stock | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Gross realized gains | 96 | |||||||||||
Total net realized investment gains (losses) | $ 96 | |||||||||||
[1] | Includes $3.6 million, $4.8 million, and $5.4 million of periodic net interest settlements related to the derivatives for the years ended December 31, 2017, 2016, and 2015, respectively. |
Components of Net Realized In77
Components of Net Realized Investment Gains (Losses) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Rate Swap | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Net interest settlements | $ 3.6 | $ 4.8 | $ 5.4 |
Schedule of Proceeds From Sales
Schedule of Proceeds From Sales and Redemptions of Available for Sale Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed maturities | $ 918,439 | $ 381,389 | $ 647,404 |
Equity securities | $ 32,218 | $ 111,156 | 39,723 |
Preferred stock | $ 1,540 |
Schedule of Investment Income (
Schedule of Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Investment income | $ 42,250 | $ 39,151 | $ 37,918 | |||||||||
Investment expense | [1] | (2,927) | (5,168) | (3,309) | ||||||||
Net investment income | $ 11,705 | $ 10,134 | $ 8,840 | $ 8,644 | $ 8,880 | $ 8,795 | $ 6,562 | $ 9,746 | 39,323 | 33,983 | 34,609 | |
Fixed Maturities | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Investment income | 33,020 | 30,337 | 32,091 | |||||||||
Equity Securities | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Investment income | 3,595 | 3,302 | 3,125 | |||||||||
Cash and Cash Equivalents | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Investment income | 894 | 217 | 82 | |||||||||
Other Invested Assets | ||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||
Investment income | $ 4,741 | $ 5,295 | $ 2,620 | |||||||||
[1] | Investment expense for the year ended December 31, 2016 includes $1.5 million in upfront fees necessary to enter into a new investment. See Note 15 for additional information on the Company's $40 million commitment related to this investment. |
Schedule of Investment Income80
Schedule of Investment Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | |||||
Investment expense | [1] | $ 2,927 | $ 5,168 | $ 3,309 | |
Commitment to purchase alternative investment | $ 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 year ended December 31, 2016 includes $1.5 million in upfront fees necessary to enter into a new investment. See Note 15 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 | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Investment Income [Line Items] | |||||||||||
Net investment income | $ 11,705 | $ 10,134 | $ 8,840 | $ 8,644 | $ 8,880 | $ 8,795 | $ 6,562 | $ 9,746 | $ 39,323 | $ 33,983 | $ 34,609 |
Net realized investment gains (losses) | $ 2,426 | $ (963) | $ (662) | $ 775 | $ 30,778 | $ 1,928 | $ (3,492) | $ (7,493) | 1,576 | 21,721 | (3,374) |
Change in unrealized holding gains and losses | 14,424 | (8,240) | (25,673) | ||||||||
Net realized and unrealized investment returns | 16,000 | 13,481 | (29,047) | ||||||||
Total investment return | $ 55,323 | $ 47,464 | $ 5,562 | ||||||||
Total investment return % | 3.50% | 3.10% | 0.30% | ||||||||
Average investment portfolio | $ 1,597,487 | $ 1,507,184 | $ 1,752,785 |
Summary of Insurance Enhanced M
Summary of Insurance Enhanced Municipal Bonds Backed by Financial Guarantors (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | $ 1,582 |
Municipal Bond Insurance Association | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 1,157 |
Gov't National Housing Association | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 425 |
Financial Guarantors | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 1,582 |
Government Guaranteed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 425 |
Government Guaranteed Securities | Gov't National Housing Association | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 425 |
Government Guaranteed Securities | Financial Guarantors | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 425 |
Exposure Net Of Pre-refunded & Government Guaranteed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | 1,157 |
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 | 1,157 |
Exposure Net Of Pre-refunded & Government Guaranteed Securities | Financial Guarantors | |
Schedule of Available-for-sale Securities [Line Items] | |
Investments in insurance enhanced municipal bonds | $ 1,157 |
Summary of Estimated Fair Value
Summary of Estimated Fair Values of Bonds Held on Deposit (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | $ 541,428 | $ 559,069 | |
On Deposit With Governmental Authorities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | 26,852 | 29,079 | |
Intercompany Trusts Held For Benefit Of U.S. Policyholders | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | 328,494 | 351,002 | |
Held In Trust Pursuant To Third Party Requirements | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | 94,098 | 88,178 | |
Letter Of Credit Held For Third Party Requirements | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | 3,944 | 4,871 | |
Securities held as collateral for borrowing arrangements | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | [1] | $ 88,040 | $ 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 | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 200,000 | $ 200,000 |
Fair Value | $ (7,968) | $ (11,524) |
Summary of Net Gains (Losses) I
Summary of Net Gains (Losses) Included in Consolidated Statements of Operations for Changes in Fair Value of Derivatives and Periodic Net Interest Settlements Under Derivatives (Detail) - Interest Rate Swap - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net loss for changes in fair value and net settlements of derivatives | $ 3,600 | $ 4,800 | $ 5,400 |
Net Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net loss for changes in fair value and net settlements of derivatives | $ (75) | $ (1,110) | $ (6,988) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - Other Assets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Funds needed to post execute swap transaction | $ 3.1 | $ 5.3 |
Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Margin calls made in connection with interest rate swaps | $ 9.5 | $ 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 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | $ 1,459,486 | $ 1,426,709 | ||
Common Shares | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 140,229 | 120,557 | ||
Fixed Maturities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 1,241,437 | 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 | 104,680 | 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 | 95,114 | 156,446 | ||
Fixed Maturities | Mortgage Backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 149,350 | 88,468 | ||
Fixed Maturities | Commercial Mortgage-Backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 139,795 | 183,192 | ||
Fixed Maturities | Asset-backed Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 203,701 | 233,991 | ||
Fixed Maturities | Corporate Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 423,390 | 380,027 | ||
Fixed Maturities | Foreign Corporate Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 125,407 | 125,860 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 1,381,666 | [1] | 1,360,588 | [2] |
Total invested liabilities | 7,968 | 11,524 | ||
Fair Value, Measurements, Recurring | Derivative instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested liabilities | 7,968 | 11,524 | ||
Fair Value, Measurements, Recurring | Common Shares | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 140,229 | 120,557 | ||
Fair Value, Measurements, Recurring | Fixed Maturities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total invested assets | 1,241,437 | 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 | 104,680 | 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 | 95,114 | 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 | 149,350 | 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 | 139,795 | 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 | 203,701 | 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 | 423,390 | 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 | 125,407 | 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 | 244,909 | [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 | 140,229 | 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 | 104,680 | 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 | 104,680 | 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 | 1,136,757 | [1] | 1,167,984 | [2] |
Total invested liabilities | 7,968 | 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 | 7,968 | 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 | 1,136,757 | 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 | 95,114 | 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 | 149,350 | 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 | 139,795 | 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 | 203,701 | 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 | 423,390 | 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 | $ 125,407 | $ 125,860 | ||
[1] | Excluded from the table above are limited partnerships of $77.8 million at December 31, 2017 whose fair value is based on net asset value as a practical expedient. | |||
[2] | Excluded from the table above are limited partnerships of $66.1 million at December 31, 2016 whose fair value is based on net asset value as a practical expedient. |
Company's Invested Assets and88
Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investment in limited partnership | $ 77,820 | $ 66,121 |
Current Fair Value of Debt (Det
Current Fair Value of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | $ 294,713 | $ 163,143 | |
Debt, fair value | 302,718 | 162,343 | |
7.75% Subordinated Notes due 2045 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | [1] | 96,619 | 96,497 |
Debt, fair value | [1] | 100,059 | 95,697 |
7.875% Subordinated Notes due 2047 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | [2] | 125,864 | |
Debt, fair value | [2] | 130,429 | |
Margin borrowing facilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 72,230 | 66,646 | |
Debt, fair value | $ 72,230 | $ 66,646 | |
[1] | As of December 31,2017 and 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 December 31, 2017, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $4.1 million. |
Current Fair Value of Debt (Par
Current Fair Value of Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 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 | $ (3,381) | $ (3,503) |
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 | $ (4,136) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity in the earnings of liability companies or partnerships | $ 4,741 | $ 5,190 | $ 2,533 |
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 | $ 4,700 | $ 5,200 | $ 2,500 |
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 |
Changes in Level 3 Investments
Changes in Level 3 Investments Measured at Fair Value on Recurring Basis (Detail) - Other Invested Assets - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 0 | $ 0 |
Included in realized gains (losses) | 0 | 486 |
Purchases | 0 | 27,303 |
Sales | 0 | (27,864) |
Ending balance | 0 | 0 |
Amortization of Bond Premium and Discount, Net | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment Income | $ 0 | $ 75 |
Fair Value and Future Funding C
Fair Value and Future Funding Commitments Related to These Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 77,820 | $ 66,121 | |
Future Funding Commitments | 57,714 | 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] | 26,262 | 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] | 33,760 | 33,199 |
Future Funding Commitments | [2] | 10,000 | $ 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] | 17,798 | |
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 Funding94
Fair Value and Future Funding Commitments Related to These Investments (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value written down | $ 0 |
Goodwill and Intangible Asset95
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Assets And Goodwill [Line Items] | |||
Goodwill | $ 6,521,000 | $ 6,521,000 | |
Impairment of goodwill | 0 | 0 | |
Amortization of definite lived intangible assets | 500,000 | 500,000 | $ 500,000 |
Amortization of the value of business acquired | 0 | 0 | $ 25,500,000 |
Indefinite lived intangible assets | 19,000,000 | 19,000,000 | |
Impairment of indefinite lived intangible assets | 0 | 0 | |
Definite lived intangible assets | 3,500,000 | 4,100,000 | |
Impairment of definite lived intangible assets | 0 | 0 | |
Personal Lines | |||
Intangible Assets And Goodwill [Line Items] | |||
Goodwill | $ 6,500,000 | $ 6,500,000 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | $ 19,000 | $ 19,000 |
Cost | 25,800 | 25,800 |
Accumulated Amortization | 3,251 | 2,721 |
Net Value | 3,500 | 4,100 |
Net Value | 22,549 | 23,079 |
Trademarks | ||
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | 4,800 | 4,800 |
Trade names | ||
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | 4,200 | 4,200 |
State insurance licenses | ||
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | $ 10,000 | $ 10,000 |
Customer relationships | ||
Acquired Intangible Assets [Line Items] | ||
Useful Life | 15 years | 15 years |
Cost | $ 5,300 | $ 5,300 |
Accumulated Amortization | 2,724 | 2,369 |
Net Value | $ 2,576 | $ 2,931 |
Agent Relationships | ||
Acquired Intangible Assets [Line Items] | ||
Useful Life | 10 years | 10 years |
Cost | $ 900 | $ 900 |
Accumulated Amortization | 270 | 179 |
Net Value | $ 630 | $ 721 |
Trade names | ||
Acquired Intangible Assets [Line Items] | ||
Useful Life | 7 years | 7 years |
Cost | $ 600 | $ 600 |
Accumulated Amortization | 257 | 173 |
Net Value | $ 343 | $ 427 |
Expected Amortization Expense (
Expected Amortization Expense (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,018 | $ 529 |
2,019 | 529 |
2,020 | 529 |
2,021 | 529 |
2,022 | $ 443 |
Reinsurance Balances (Detail)
Reinsurance Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Effects of Reinsurance [Line Items] | ||||
Reinsurance receivables, net | $ 105,060 | $ 143,774 | ||
Collateral securing reinsurance receivables | (6,584) | (13,865) | ||
Reinsurance receivables, net of collateral | 98,476 | 129,909 | ||
Prepaid reinsurance premiums | 28,851 | 42,583 | ||
Allowance for Reinsurance Recoverable | ||||
Effects of Reinsurance [Line Items] | ||||
Allowance for uncollectible reinsurance receivables | $ 8,040 | $ 8,040 | $ 9,675 | $ 9,350 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Effects of Reinsurance [Line Items] | ||
Purchase accounting adjustments | $ 1.2 | $ 2 |
Minimum | ||
Effects of Reinsurance [Line Items] | ||
Unsecured reinsurance receivable percentage of shareholders' equity | 3.00% |
Unsecured Reinsurance Receivabl
Unsecured Reinsurance Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Reinsurance Receivables | $ 105,060 | $ 143,774 |
Munich Re America Corporation | A.M, Best A+ Rating | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Reinsurance Receivables | $ 48,222 |
Effect of Reinsurance on Premiu
Effect of Reinsurance on Premiums Written and Earned (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||||||||
Direct business | $ 433,922 | $ 468,046 | $ 458,185 | |||||||||
Reinsurance assumed | 82,412 | 97,799 | 132,048 | |||||||||
Reinsurance ceded | [1] | (66,154) | (94,905) | (88,989) | ||||||||
Net premiums | 450,180 | 470,940 | 501,244 | |||||||||
Direct business | 440,109 | 466,750 | 452,441 | |||||||||
Reinsurance assumed | 77,811 | 98,267 | 144,554 | |||||||||
Reinsurance ceded | [1] | (79,886) | (96,552) | (92,852) | ||||||||
Net premiums | $ 109,216 | $ 108,619 | $ 107,073 | $ 113,126 | $ 109,472 | $ 119,553 | $ 117,804 | $ 121,636 | $ 438,034 | $ 468,465 | $ 504,143 | |
[1] | Includes ceded written premiums of ($1.3) million, $35.3 million, and $55.8 million and ceded earned premiums of $13.5 million, $43.2 million and $59.5 million to American Bankers Insurance Company for the years ended December 31, 2017, 2016, and 2015, respectively. |
Effect of Reinsurance on Pre102
Effect of Reinsurance on Premiums Written and Earned (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Ceded earned premiums | [1] | $ 79,886 | $ 96,552 | $ 92,852 |
American Bankers Insurance Company | ||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Ceded written premiums | (1,300) | 35,300 | 55,800 | |
Ceded earned premiums | $ 13,500 | $ 43,200 | $ 59,500 | |
[1] | Includes ceded written premiums of ($1.3) million, $35.3 million, and $55.8 million and ceded earned premiums of $13.5 million, $43.2 million and $59.5 million to American Bankers Insurance Company for the years ended December 31, 2017, 2016, and 2015, respectively. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax [Line Items] | ||||
Statutory income tax rates | 35.00% | |||
Effective income tax benefit rate | (5.00%) | (4.70%) | (26.60%) | |
Tax benefit due to increased losses | $ 18,400,000 | |||
Reduction in deferred tax assets due to Tax Cuts and Jobs Act | 17,524,000 | |||
U.S. tax rate change | $ 17,524,000 | |||
Increase in effective tax rate | 174.40% | |||
Alternative minimum tax credit carry forward | $ 10,957,000 | |||
Net operating loss carryforwards | $ 16,323,000 | 3,205,000 | ||
AMT credit carryforward reclassed to federal income tax receivable | 10,332,000 | |||
Section 163(j) carryforward | 7,906,000 | 8,075,000 | ||
Unrecognized tax benefits | 0 | 0 | ||
Interest and penalties for uncertain tax positions | 0 | $ 0 | $ 0 | |
Liabilities for tax-related interest and penalties | $ 0 | |||
Global Indemnity Group Inc | ||||
Income Tax [Line Items] | ||||
Withholding Tax | 5.00% | |||
Subsequent Events | ||||
Income Tax [Line Items] | ||||
Statutory income tax rates | 21.00% | |||
Alternative Minimum Tax Credits | ||||
Income Tax [Line Items] | ||||
AMT credit carryforward reclassed to federal income tax receivable | $ 11,000,000 | |||
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 | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||||||||||
Gross premiums written | $ 516,334 | $ 565,845 | $ 590,233 | ||||||||
Net premiums written | 450,180 | 470,940 | 501,244 | ||||||||
Net premiums earned | $ 109,216 | $ 108,619 | $ 107,073 | $ 113,126 | $ 109,472 | $ 119,553 | $ 117,804 | $ 121,636 | 438,034 | 468,465 | 504,143 |
Net investment income | 11,705 | 10,134 | 8,840 | 8,644 | 8,880 | 8,795 | 6,562 | 9,746 | 39,323 | 33,983 | 34,609 |
Net realized investment gains (losses) | 2,426 | (963) | (662) | 775 | 30,778 | 1,928 | (3,492) | (7,493) | 1,576 | 21,721 | (3,374) |
Other income | 6,582 | 10,345 | 3,400 | ||||||||
Total revenues | 485,515 | 534,514 | 538,778 | ||||||||
Losses and Expenses: | |||||||||||
Net losses and loss adjustment expenses | 66,556 | 82,395 | 57,700 | 62,561 | 48,946 | 72,162 | 78,111 | 64,784 | 269,212 | 264,003 | 275,368 |
Acquisition costs and other underwriting expenses | 48,723 | 45,002 | 43,457 | 46,551 | 47,889 | 48,129 | 48,542 | 52,090 | 183,733 | 196,650 | 201,303 |
Corporate and other operating expenses | 25,714 | 17,338 | 24,448 | ||||||||
Interest expense | 16,906 | 8,905 | 4,913 | ||||||||
Income (loss) before income taxes | $ (10,304) | $ (16,779) | $ 7,753 | $ 9,280 | $ 46,535 | $ 10,598 | $ (11,468) | $ 1,953 | (10,050) | 47,618 | 32,746 |
Non-U.S. Subsidiaries | |||||||||||
Revenues: | |||||||||||
Gross premiums written | 212,386 | 201,726 | 345,392 | ||||||||
Net premiums written | 212,432 | 201,690 | 345,342 | ||||||||
Net premiums earned | 201,165 | 212,325 | 283,448 | ||||||||
Net investment income | 56,890 | 48,807 | 44,534 | ||||||||
Net realized investment gains (losses) | (641) | (89) | (1,039) | ||||||||
Other income | 216 | (224) | (93) | ||||||||
Total revenues | 257,630 | 260,819 | 326,850 | ||||||||
Losses and Expenses: | |||||||||||
Net losses and loss adjustment expenses | 94,903 | 95,812 | 141,444 | ||||||||
Acquisition costs and other underwriting expenses | 89,153 | 94,749 | 122,999 | ||||||||
Corporate and other operating expenses | 17,399 | 9,035 | 5,928 | ||||||||
Interest expense | 16,740 | 8,312 | 4,492 | ||||||||
Income (loss) before income taxes | 39,435 | 52,911 | 51,987 | ||||||||
U.S. Subsidiaries | |||||||||||
Revenues: | |||||||||||
Gross premiums written | 462,453 | 506,061 | 540,500 | ||||||||
Net premiums written | 237,748 | 269,250 | 155,902 | ||||||||
Net premiums earned | 236,869 | 256,140 | 220,695 | ||||||||
Net investment income | 24,609 | 19,341 | 18,011 | ||||||||
Net realized investment gains (losses) | 2,217 | 21,810 | (2,335) | ||||||||
Other income | 6,366 | 10,569 | 3,493 | ||||||||
Total revenues | 270,061 | 307,860 | 239,864 | ||||||||
Losses and Expenses: | |||||||||||
Net losses and loss adjustment expenses | 174,309 | 168,191 | 133,924 | ||||||||
Acquisition costs and other underwriting expenses | 94,580 | 101,901 | 78,304 | ||||||||
Corporate and other operating expenses | 8,315 | 8,303 | 18,520 | ||||||||
Interest expense | 42,342 | 34,758 | 28,357 | ||||||||
Income (loss) before income taxes | (49,485) | (5,293) | (19,241) | ||||||||
Eliminations | |||||||||||
Revenues: | |||||||||||
Gross premiums written | (158,505) | (141,942) | (295,659) | ||||||||
Net investment income | (42,176) | (34,165) | (27,936) | ||||||||
Total revenues | (42,176) | (34,165) | (27,936) | ||||||||
Losses and Expenses: | |||||||||||
Interest expense | $ (42,176) | $ (34,165) | $ (27,936) |
Components of Income Tax Benefi
Components of Income Tax Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current income tax expense (benefit): | |||
Foreign | $ 392 | $ 330 | $ 263 |
U.S. Federal | 127 | 147 | (1,785) |
Total current income tax expense (benefit) | 519 | 477 | (1,522) |
Deferred income tax expense (benefit): | |||
U.S. tax rate change | 17,524 | ||
U.S. Federal | (18,542) | (2,727) | (7,201) |
Total deferred income tax (benefit) | (1,018) | (2,727) | (7,201) |
Effective income tax benefit | $ (499) | $ (2,250) | $ (8,723) |
Differences in Tax Provision fo
Differences in Tax Provision for Financial Statement Purposes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax [Line Items] | |||
Expected tax provision at weighted average rate | $ (16,928) | $ (1,496) | $ (6,434) |
Adjustments: | |||
Tax exempt interest | (213) | (394) | (441) |
Dividend exclusion | (571) | (617) | (784) |
Tax rate change | 17,524 | ||
Other | (311) | 257 | (1,064) |
Effective income tax benefit | $ (499) | $ (2,250) | $ (8,723) |
Expected tax provision at weighted average rate | (168.40%) | (3.10%) | (19.60%) |
Adjustments: | |||
Tax exempt interest, % of Pre-Tax Income | (2.10%) | (0.80%) | (1.30%) |
Dividend exclusion, % of Pre-Tax Income | (5.70%) | (1.30%) | (2.40%) |
Tax rate change, % of Pre-Tax Income | 174.40% | ||
Other, % of Pre-Tax Income | (3.20%) | 0.50% | (3.30%) |
Effective income tax benefit, % of Pre-Tax Income | (5.00%) | (4.70%) | (26.60%) |
Tax Effects of Temporary Differ
Tax Effects of Temporary Differences That Give Rise to Significant Portions of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Discounted unpaid losses and loss adjustment expenses | $ 3,625 | $ 7,015 |
Unearned premiums | 5,318 | 8,802 |
Section 163(j) carryforward | 7,906 | 8,075 |
Alternative minimum tax credit carryover | 10,957 | |
Net operating loss carryforward | 16,323 | 3,205 |
Partnership K1 basis differences | 130 | 238 |
Capital gain on derivative instruments | 1,673 | 4,033 |
Investment impairments | 1,742 | 3,419 |
Stock options | 1,740 | 2,820 |
Stat-to-GAAP reinsurance reserve | 1,014 | 1,337 |
Intercompany transfers | 317 | 808 |
Other | 3,249 | 4,986 |
Total deferred tax assets | 43,037 | 55,695 |
Deferred tax liabilities: | ||
Purchase accounting adjustment for American Reliable | 7,723 | 6,095 |
Intangible assets | 2,394 | 3,942 |
Unrealized gain on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income | 3,105 | 352 |
Investment basis differences | 211 | 484 |
Deferred acquisition costs | 1,921 | 2,941 |
Depreciation and amortization | 285 | 119 |
Other | 1,202 | 805 |
Total deferred tax liabilities | 16,841 | 14,738 |
Total net deferred tax assets | $ 26,196 | $ 40,957 |
Summarized Activity in Liabilit
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Balance at beginning of period | $ 651,042 | $ 680,047 | $ 675,472 |
Less: Ceded reinsurance receivables | 130,439 | 108,130 | 123,201 |
Net balance at beginning of period | 520,603 | 571,917 | 552,271 |
Purchased reserves, gross | 19,333 | 2,007 | 89,489 |
Less: Purchased reserves ceded | (29) | (45) | 12,800 |
Purchase reserves, net of third party reinsurance | 19,362 | 2,052 | 76,689 |
Incurred losses and loss adjustment expenses related to: | |||
Current year | 323,112 | 321,255 | 310,066 |
Prior years | (53,900) | (57,252) | (34,698) |
Total incurred losses and loss adjustment expenses | 269,212 | 264,003 | 275,368 |
Paid losses and loss adjustment expenses related to: | |||
Current year | 156,325 | 177,006 | 164,058 |
Prior years | 115,431 | 140,363 | 168,353 |
Total paid losses and loss adjustment expenses | 271,756 | 317,369 | 332,411 |
Net balance at end of period | 537,421 | 520,603 | 571,917 |
Plus: Ceded reinsurance receivables | 97,243 | 130,439 | 108,130 |
Balance at end of period | $ 634,664 | $ 651,042 | $ 680,047 |
Liability for Unpaid Losses 109
Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (53,900) | $ (57,252) | $ (34,698) | |
Unpaid losses and loss adjustment expense reserves | 634,664 | 651,042 | 680,047 | $ 675,472 |
Unpaid losses and loss adjustment expense reserves, net | 537,421 | 520,603 | 571,917 | 552,271 |
Unpaid losses and loss adjustment expenses reserves | $ 30,124 | $ 29,890 | $ 30,529 | $ 31,185 |
Survival ratio on a gross basis for open A&E claims, periods | 20 years 8 months 12 days | 13 years 9 months 18 days | 15 years | |
Survival ratio on net basis for open A&E claims, periods | 35 years 7 months 6 days | 19 years 3 months 19 days | 16 years 9 months 18 days | |
Construction Defect | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Unpaid losses and loss adjustment expense reserves | $ 43,800 | $ 54,500 | ||
Unpaid losses and loss adjustment expense reserves, net | 40,200 | 48,600 | ||
IBNR Reserves | Asbestos | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Unpaid losses and loss adjustment expenses reserves | 26,900 | 26,700 | $ 26,000 | |
Case Reserves | Asbestos | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Unpaid losses and loss adjustment expenses reserves | 3,300 | 3,200 | 4,500 | |
Commercial Lines Segment | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (39,400) | (43,800) | (25,200) | |
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 | (26,900) | |||
Commercial Lines Segment | General Liability | Casualty Insurance | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (43,800) | (20,400) | ||
Commercial Lines Segment | General Liability | Accident Years 2005 Through 2016 | Construction Defect | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (6,900) | |||
Commercial Lines Segment | General Liability | Accident years 2005 through 2014 | Other General Liability | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (20,000) | |||
Commercial Lines Segment | General Liability | Accident years 2005 through 2015 | Construction Defect | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (9,400) | |||
Commercial Lines Segment | General Liability | Accident years 2004 through 2014 | Other General Liability | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (34,400) | (14,500) | ||
Commercial Lines Segment | General Liability | Accident years 2008 through 2014 | Construction Defect | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (5,900) | |||
Commercial Lines Segment | Professional | 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 | (5,800) | |||
Commercial Lines Segment | Professional | Accident years 2006 through 2011 | Casualty Insurance | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (6,200) | |||
Commercial Lines Segment | Property Lines | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (6,300) | 800 | ||
Commercial Lines Segment | Property Lines | Accident years 2011 through 2015 | Non-catastrophe segments | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (4,000) | |||
Commercial Lines Segment | Property Lines | Accident Years 2011 Through 2016 | Catastrophe segment | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (2,300) | |||
Commercial Lines Segment | Property Lines | Accident Years 2009, 2012, 2015, 2008, 2011, and 2013 | Non-catastrophe segments | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 500 | |||
Commercial Lines Segment | Property Lines | Accident Years 2009, 2012, 2015, 2008, 2011, and 2013 | Catastrophe segment | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 300 | |||
Commercial Lines Segment | Marine | Accident years 2010 through 2012 | Casualty Insurance | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,400) | |||
Commercial Lines Segment | Workers Compensation | Accident Year 2011 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (500) | |||
Commercial Lines Segment | Umbrella Lines | Accident Years 1990, 1995, 2001, 2007, 2013 and Prior to 1990 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 1,600 | |||
Personal Lines | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (6,600) | (400) | ||
Personal Lines | Accident Year 2013 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (400) | |||
Personal Lines | General Liability | 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 | (500) | |||
Personal Lines | 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 | (6,100) | |||
Reinsurance Operations | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (7,900) | (13,500) | (9,100) | |
Reinsurance Operations | Property Lines | Accident years 2010 through 2015 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (13,500) | |||
Reinsurance Operations | Property Lines | Accident years 2011 through 2014 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (6,800) | |||
Reinsurance Operations | Property Lines | 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 | $ (7,900) | |||
Reinsurance Operations | Marine | Accident years 2010 and 2011 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (2,800) | |||
Reinsurance Operations | Workers Compensation | Accident years 2010 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ 1,000 |
Gross Reserves for Asbestos and
Gross Reserves for Asbestos and Environmental Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory Reserve [Line Items] | |||
Gross reserve for A&E losses and loss adjustment expenses - beginning of period | $ 51,919 | $ 53,824 | $ 56,535 |
Less: Payments | 1,516 | 3,300 | 2,714 |
Gross reserves for A&E losses and loss adjustment expenses - end of period | 51,873 | 51,919 | 53,824 |
Incurred Losses and Loss Adjustment Expense-Case Reserves | |||
Statutory Reserve [Line Items] | |||
Plus: Incurred losses and loss adjustment expenses | 542 | (669) | 2,666 |
Incurred Losses and Loss Adjustment Expense-IBNR Reserves | |||
Statutory Reserve [Line Items] | |||
Plus: Incurred losses and loss adjustment expenses | $ 928 | $ 2,064 | $ (2,663) |
Net Reserves for Asbestos and E
Net Reserves for Asbestos and Environmental Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory Reserve [Line Items] | |||
Net reserve for A&E losses and loss adjustment expenses - beginning of period | $ 29,890 | $ 30,529 | $ 31,185 |
Less: Payments | 733 | 1,145 | 657 |
Net reserves for A&E losses and loss adjustment expenses - end of period | 30,124 | 29,890 | 30,529 |
Incurred Losses and Loss Adjustment Expense-Case Reserves | |||
Statutory Reserve [Line Items] | |||
Plus: Incurred losses and loss adjustment expenses | 769 | (125) | 395 |
Incurred Losses and Loss Adjustment Expense-IBNR Reserves | |||
Statutory Reserve [Line Items] | |||
Plus: Incurred losses and loss adjustment expenses | $ 198 | $ 631 | $ (394) |
Incurred Claims and Allocated C
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Detail) $ in Thousands | Dec. 31, 2017USD ($)Claim | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | |
Commercial Lines Segment | Property Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 168,374 | ||||||||||
Commercial Lines Segment | Property Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 62,575 | $ 64,722 | $ 63,574 | ||||||||
IBNR | [1] | $ 2,868 | |||||||||
Cumulative Number of Reported Claims | Claim | 4,649 | ||||||||||
Commercial Lines Segment | Property Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 61,014 | 61,990 | |||||||||
IBNR | [1] | $ 5,097 | |||||||||
Cumulative Number of Reported Claims | Claim | 4,104 | ||||||||||
Commercial Lines Segment | Property Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 44,785 | ||||||||||
IBNR | [1] | $ 8,583 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,778 | ||||||||||
Commercial Lines Segment | Casualty Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 722,508 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2008 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 126,924 | 129,894 | 134,514 | $ 138,558 | $ 146,142 | $ 148,019 | $ 149,564 | $ 160,325 | $ 170,855 | $ 138,417 | |
IBNR | [1] | $ 7,096 | |||||||||
Cumulative Number of Reported Claims | Claim | 6,191 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2009 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 88,384 | 91,297 | 94,016 | 96,206 | 104,392 | 104,803 | 104,518 | 96,956 | 93,748 | ||
IBNR | [1] | $ 7,444 | |||||||||
Cumulative Number of Reported Claims | Claim | 3,896 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 82,824 | 84,681 | 91,368 | 94,484 | 101,113 | 102,252 | 101,830 | 79,188 | |||
IBNR | [1] | $ 10,785 | |||||||||
Cumulative Number of Reported Claims | Claim | 3,503 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 84,269 | 96,361 | 108,720 | 115,193 | 117,288 | 117,602 | 115,441 | ||||
IBNR | [1] | $ 5,701 | |||||||||
Cumulative Number of Reported Claims | Claim | 3,741 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 52,504 | 55,137 | 63,359 | 65,637 | 65,911 | 61,340 | |||||
IBNR | [1] | $ 11,346 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,379 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 64,877 | 66,301 | 67,702 | 68,089 | 63,807 | ||||||
IBNR | [1] | $ 11,435 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,519 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 56,837 | 58,042 | 60,227 | 61,325 | |||||||
IBNR | [1] | $ 15,139 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,307 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 57,775 | 56,620 | 57,262 | ||||||||
IBNR | [1] | $ 17,359 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,010 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 53,776 | 54,130 | |||||||||
IBNR | [1] | $ 25,895 | |||||||||
Cumulative Number of Reported Claims | Claim | 1,750 | ||||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 54,338 | ||||||||||
IBNR | [1] | $ 37,994 | |||||||||
Cumulative Number of Reported Claims | Claim | 1,283 | ||||||||||
Personal Lines | Property Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 292,803 | ||||||||||
Personal Lines | Property Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 144,787 | 146,571 | |||||||||
IBNR | [1] | $ 5,418 | |||||||||
Cumulative Number of Reported Claims | Claim | 17,356 | ||||||||||
Personal Lines | Property Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 148,016 | ||||||||||
IBNR | [1] | $ 15,743 | |||||||||
Cumulative Number of Reported Claims | Claim | 16,384 | ||||||||||
Personal Lines | Casualty Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 62,922 | ||||||||||
Personal Lines | Casualty Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 21,850 | 20,506 | 18,930 | ||||||||
IBNR | [1] | $ 5,059 | |||||||||
Cumulative Number of Reported Claims | Claim | 1,317 | ||||||||||
Personal Lines | Casualty Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 21,073 | 21,476 | |||||||||
IBNR | [1] | $ 11,345 | |||||||||
Cumulative Number of Reported Claims | Claim | 1,370 | ||||||||||
Personal Lines | Casualty Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 19,999 | ||||||||||
IBNR | [1] | $ 15,334 | |||||||||
Cumulative Number of Reported Claims | Claim | 878 | ||||||||||
Reinsurance Operations | Property Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 131,911 | ||||||||||
Reinsurance Operations | Property Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 24,786 | 24,912 | 24,994 | 25,994 | 26,916 | 28,547 | 30,963 | ||||
IBNR | [1] | 1,028 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 8,397 | 8,497 | 8,579 | 9,279 | 10,578 | 10,388 | |||||
IBNR | [1] | 539 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 6,345 | 6,698 | 8,197 | 9,948 | 15,153 | ||||||
IBNR | [1] | 753 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 13,590 | 14,139 | 18,861 | 21,787 | |||||||
IBNR | [1] | 1,264 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 12,526 | 16,738 | 19,877 | ||||||||
IBNR | [1] | 2,977 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 22,485 | 23,646 | |||||||||
IBNR | [1] | 10,433 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 43,782 | ||||||||||
IBNR | [1] | 26,239 | |||||||||
Reinsurance Operations | Casualty Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 175,867 | ||||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2008 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 9,768 | 9,835 | 9,435 | 10,340 | 10,340 | 10,167 | 8,997 | 8,988 | 8,758 | $ 8,906 | |
IBNR | [1] | 291 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2009 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 31,514 | 31,453 | 31,419 | 31,340 | 30,850 | 30,533 | 25,444 | 23,818 | $ 20,706 | ||
IBNR | [1] | 386 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 60,573 | 60,701 | 61,792 | 61,062 | 62,628 | 57,916 | 53,279 | $ 41,831 | |||
IBNR | [1] | 2,015 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 42,968 | 43,657 | 46,510 | 47,980 | 44,692 | 48,846 | $ 45,726 | ||||
IBNR | [1] | 2,122 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 17,348 | 17,360 | 17,579 | 17,123 | 15,624 | $ 15,865 | |||||
IBNR | [1] | 1,113 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 974 | 1,013 | 1,172 | 1,262 | $ 1,224 | ||||||
IBNR | [1] | 870 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,957 | 2,060 | 2,095 | $ 1,988 | |||||||
IBNR | [1] | 1,954 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,780 | 2,911 | $ 2,908 | ||||||||
IBNR | [1] | 2,779 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,627 | $ 3,627 | |||||||||
IBNR | [1] | 3,627 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,358 | ||||||||||
IBNR | [1] | $ 4,358 | |||||||||
[1] | Incurred-but-not-reported liabilities plus expected development on reported claims |
Supplementary Information about
Supplementary Information about Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 |
Claims Development [Line Items] | ||||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | $ 509,231 | |||||||||
Commercial Lines Segment | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 139,434 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 36,575 | |||||||||
Commercial Lines Segment | Property Insurance | All outstanding liabilities before 2015, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 7,635 | |||||||||
Commercial Lines Segment | Property Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 58,926 | $ 57,653 | $ 41,942 | |||||||
Commercial Lines Segment | Property Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 51,967 | 39,643 | ||||||||
Commercial Lines Segment | Property Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 28,541 | |||||||||
Commercial Lines Segment | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 506,257 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 281,081 | |||||||||
Commercial Lines Segment | Casualty Insurance | All outstanding liabilities before 2008, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 64,830 | |||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 25,147 | 14,584 | 3,336 | |||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 14,027 | 4,135 | ||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,914 | |||||||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 118,254 | 117,797 | 116,246 | $ 114,546 | $ 110,145 | $ 100,369 | $ 86,889 | $ 65,700 | $ 34,172 | $ 7,844 |
Commercial Lines Segment | Casualty Insurance | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 79,896 | 77,771 | 75,181 | 71,108 | 65,721 | 53,738 | 37,653 | 19,154 | 5,564 | |
Commercial Lines Segment | Casualty Insurance | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 69,615 | 67,277 | 65,377 | 58,913 | 50,520 | 34,659 | 19,926 | 5,503 | ||
Commercial Lines Segment | Casualty Insurance | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 74,839 | 72,087 | 64,722 | 56,562 | 41,282 | 21,325 | 5,451 | |||
Commercial Lines Segment | Casualty Insurance | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 39,596 | 36,360 | 31,231 | 22,456 | 11,884 | 3,500 | ||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 46,272 | 38,438 | 29,510 | 17,881 | 6,400 | |||||
Commercial Lines Segment | Casualty Insurance | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 33,697 | 26,268 | 15,690 | 3,968 | ||||||
Personal Lines | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 252,649 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 44,360 | |||||||||
Personal Lines | Property Insurance | All outstanding liabilities before 2016, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 4,206 | |||||||||
Personal Lines | Property Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 138,289 | 121,899 | ||||||||
Personal Lines | Property Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 114,360 | |||||||||
Personal Lines | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 21,943 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 52,651 | |||||||||
Personal Lines | Casualty Insurance | All outstanding liabilities before 2015, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 11,672 | |||||||||
Personal Lines | Casualty Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 12,926 | 8,757 | 3,439 | |||||||
Personal Lines | Casualty Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 6,885 | 3,507 | ||||||||
Personal Lines | Casualty Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,132 | |||||||||
Reinsurance Operations | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 61,741 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 70,492 | |||||||||
Reinsurance Operations | Property Insurance | All outstanding liabilities before 2011, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 322 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 6,768 | 5,163 | 742 | |||||||
Reinsurance Operations | Property Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,704 | 2,071 | ||||||||
Reinsurance Operations | Property Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,152 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 23,096 | 22,771 | 22,426 | 22,060 | 20,698 | 19,274 | 12,044 | |||
Reinsurance Operations | Property Insurance | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 7,584 | 7,527 | 7,648 | 7,221 | 5,481 | 1,127 | ||||
Reinsurance Operations | Property Insurance | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,255 | 5,111 | 5,835 | 4,008 | 723 | |||||
Reinsurance Operations | Property Insurance | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 11,182 | 10,460 | 9,035 | 2,243 | ||||||
Reinsurance Operations | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 153,005 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 24,072 | |||||||||
Reinsurance Operations | Casualty Insurance | All outstanding liabilities before 2008, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 1,210 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1 | 128 | 107 | |||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 8,981 | 8,919 | 8,875 | 8,713 | 6,832 | 5,648 | 5,149 | 1,955 | 627 | |
Reinsurance Operations | Casualty Insurance | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 31,128 | 31,019 | 30,141 | 15,104 | 13,652 | 12,597 | 11,064 | 9,759 | $ 1,986 | |
Reinsurance Operations | Casualty Insurance | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 56,960 | 55,848 | 55,315 | 39,123 | 36,090 | 30,754 | 21,447 | $ 10,185 | ||
Reinsurance Operations | Casualty Insurance | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 40,079 | 39,815 | 38,907 | 36,020 | 28,495 | 20,072 | $ 7,968 | |||
Reinsurance Operations | Casualty Insurance | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 15,790 | 15,696 | 15,534 | 11,658 | 9,435 | $ 5,312 | ||||
Reinsurance Operations | Casualty Insurance | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 65 | 65 | 62 | 50 | $ 123 | |||||
Reinsurance Operations | Casualty Insurance | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1 | $ 50 | $ 47 | $ 88 |
Supplementary Information of Av
Supplementary Information of Average Historical Claims (Detail) | Dec. 31, 2017 |
Commercial Lines Segment | Property Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 65.20% |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 22.70% |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 2.00% |
Commercial Lines Segment | Casualty Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 7.20% |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 18.30% |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 20.30% |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 16.50% |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 11.00% |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 7.30% |
Average annual percentage payout of incurred claims by age, net of reinsurance year seven | 3.40% |
Average annual percentage payout of incurred claims by age, net of reinsurance year eight | 2.40% |
Average annual percentage payout of incurred claims by age, net of reinsurance year nine | 1.80% |
Average annual percentage payout of incurred claims by age, net of reinsurance year ten | 0.40% |
Personal Lines | Property Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 80.70% |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 11.30% |
Personal Lines | Casualty Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 14.30% |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 20.20% |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 19.10% |
Reinsurance Operations | Property Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 15.70% |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 39.00% |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 15.70% |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 1.10% |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 0.80% |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 1.00% |
Average annual percentage payout of incurred claims by age, net of reinsurance year seven | 1.30% |
Reinsurance Operations | Casualty Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 9.30% |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 10.30% |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 7.80% |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 12.00% |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 3.50% |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 9.20% |
Average annual percentage payout of incurred claims by age, net of reinsurance year seven | 17.10% |
Average annual percentage payout of incurred claims by age, net of reinsurance year eight | 2.10% |
Average annual percentage payout of incurred claims by age, net of reinsurance year nine | 0.40% |
Average annual percentage payout of incurred claims by age, net of reinsurance year ten | 0.60% |
Reconciliation of Net Incurred
Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and Loss Adjustment Expenses in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | $ 509,231 | |||
Reinsurance recoverable on unpaid claims | 95,691 | |||
Total other outstanding liabilities | 29,742 | |||
Total gross liability for unpaid losses and loss adjustment expenses | 634,664 | $ 651,042 | $ 680,047 | $ 675,472 |
Commercial Lines Segment | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Ceded Allowance | 8,040 | |||
Unallocated claims adjustment expenses | 16,930 | |||
Purchase accounting adjustment | (1,200) | |||
Loss Clearing | 322 | |||
Commercial Lines Segment | Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 36,575 | |||
Reinsurance recoverable on unpaid claims | 8,508 | |||
Commercial Lines Segment | Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 281,081 | |||
Reinsurance recoverable on unpaid claims | 68,786 | |||
Personal Lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Fronted business ceded to Assurant | 2,752 | |||
Unallocated claims adjustment expenses | 2,190 | |||
Loss Clearing | (25) | |||
Personal Lines | Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 44,360 | |||
Reinsurance recoverable on unpaid claims | 10,608 | |||
Personal Lines | Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 52,651 | |||
Reinsurance recoverable on unpaid claims | 7,718 | |||
Reinsurance Operations | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unallocated claims adjustment expenses | 987 | |||
Other | (254) | |||
Reinsurance Operations | Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 70,492 | |||
Reinsurance Operations | Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 24,072 | |||
Reinsurance recoverable on unpaid claims | $ 71 |
Outstanding Debt Consisted (Det
Outstanding Debt Consisted (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Debt | $ 294,713 | $ 163,143 | |
7.75% Subordinated Notes due 2045 | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 96,619 | 96,497 |
7.875% Subordinated Notes due 2047 | |||
Debt Instrument [Line Items] | |||
Debt | [2] | 125,864 | |
Margin borrowing facilities | |||
Debt Instrument [Line Items] | |||
Debt | $ 72,230 | $ 66,646 | |
[1] | As of December 31,2017 and 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 December 31, 2017, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $4.1 million. |
Outstanding Debt Consisted (Par
Outstanding Debt Consisted (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
7.75% Subordinated Notes due 2045 | ||
Debt Instrument [Line Items] | ||
Subordinated Notes percentage | 7.75% | 7.75% |
Subordinated Notes due date | 2,045 | 2,045 |
7.875% Subordinated Notes due 2047 | ||
Debt Instrument [Line Items] | ||
Subordinated Notes percentage | 7.875% | |
Subordinated Notes due date | 2,047 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 23, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 30, 2017 | Aug. 12, 2015 | |
Debt Instrument [Line Items] | |||||||
Debt | $ 294,713 | $ 163,143 | |||||
Interest expense | 16,906 | 8,905 | $ 4,913 | ||||
Margin borrowing facilities | |||||||
Debt Instrument [Line Items] | |||||||
Debt | $ 72,230 | $ 66,646 | |||||
Stated interest rate | 1.60% | 1.60% | |||||
Collateral deposited to support borrowing | $ 88,000 | ||||||
Interest expense | 1,000 | $ 1,000 | 1,900 | ||||
7.75% Subordinated Notes due 2045 | |||||||
Debt Instrument [Line Items] | |||||||
Debt | [1] | $ 96,619 | $ 96,497 | ||||
Stated interest rate | 7.75% | 7.75% | |||||
Interest expense | $ 7,900 | $ 7,900 | $ 3,000 | ||||
Debt instrument, face amount | $ 100,000 | ||||||
Debt instrument, interest rate terms | Payable quarterly in arrears on February 15, May 15, August 15, and November 15 of each year | ||||||
Debt instrument, maturity date | Aug. 15, 2045 | ||||||
Debt instrument, redemption description | The Company has the right to redeem the 2045 Notes in $25 increments, in whole or in part, on and after August 15, 2020, or on any interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the 2045 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 | $ 3,700 | ||||||
7.875% Subordinated Notes due 2047 | |||||||
Debt Instrument [Line Items] | |||||||
Debt | [2] | $ 125,864 | |||||
Stated interest rate | 7.875% | ||||||
Interest expense | $ 8,000 | ||||||
Debt instrument, face amount | $ 120,000 | $ 130,000 | |||||
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 | ||||||
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 | ||||||
7.875% Subordinated Notes due 2047 | Over-Allotment Option | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 10,000 | ||||||
[1] | As of December 31,2017 and 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 December 31, 2017, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $4.1 million. |
Amounts Recorded for Margin Bor
Amounts Recorded for Margin Borrowing Facilities and Subordinated Notes (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Net Carrying Amount | $ 294,713 | $ 163,143 | |
7.75% Subordinated Notes due 2045 | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 100,000 | 100,000 | |
December 31, 2017 Unamortized Debt Issuance Costs | (3,381) | (3,503) | |
Net Carrying Amount | [1] | 96,619 | $ 96,497 |
7.875% Subordinated Notes due 2047 | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 130,000 | ||
December 31, 2017 Unamortized Debt Issuance Costs | (4,136) | ||
Net Carrying Amount | [2] | 125,864 | |
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 230,000 | ||
December 31, 2017 Unamortized Debt Issuance Costs | (7,517) | ||
Net Carrying Amount | $ 222,483 | ||
[1] | As of December 31,2017 and 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 December 31, 2017, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $4.1 million. |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Dec. 29, 2017 | Nov. 07, 2016 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Equity, Class of Treasury Stock [Line Items] | |||||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Share Premium | $ 434,730,000 | $ 434,730,000 | $ 434,730,000 | $ 430,283,000 | |||
Additional Paid-in Capital | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Reduction in treasury shares due to redomestication | $ 103,248,000 | 103,248,000 | |||||
Treasury Shares | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Reduction in treasury shares due to redomestication | (103,248,000) | ||||||
Fox Paine and Company | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program, number of shares purchased | 3,397,031 | ||||||
Stock repurchase program, value of shares purchased | $ 83,000,000 | ||||||
Stock repurchase program, per share purchased | $ 24.44 | ||||||
Quarterly Dividend | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Dividend declared, per share | $ 0.25 | ||||||
Annual Dividend | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Dividend declared, per share | $ 1 | ||||||
Redemption Agreement | Fox Paine and Company | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Ordinary shares agreed to redeem, shares | 8,260,870 | ||||||
Additional Redemption Agreement | Fox Paine and Company | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Ordinary shares agreed to redeem, shares | 3,397,031 | ||||||
Redemption agreement expiration date | Dec. 31, 2019 | ||||||
Ordinary shares agreed to redeem | $ 78,100,000 | ||||||
Ordinary shares agreed to redeem, percentage of annual increase | 3.00% | ||||||
Global Indemnity Limited | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Reduction in treasury shares due to redomestication | 9,000,000 | ||||||
Stock Issued during Period | 17,597,230 | ||||||
Distributable reserves | 275,800,000 | $ 275,800,000 | $ 275,800,000 | ||||
Share Premium | 434,700,000 | 434,700,000 | 434,700,000 | ||||
Global Indemnity Limited | Maximum | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Maximum dividends and distributions allowable under law | $ 719,600,000 | $ 719,600,000 | $ 719,600,000 | ||||
Ordinary Shares A | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Ordinary shares, cancelled | 13,463,864 | ||||||
Ordinary shares, par value | $ 0.0001 | ||||||
Reduction in treasury shares due to redomestication | $ 1,000 | ||||||
Ordinary Shares A | Treasury Shares | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program, number of shares purchased | 29,551 | 28,099 | 11,895 | ||||
Stock repurchase program, value of shares purchased | $ 1,159,000 | $ 805,000 | $ 333,000 | ||||
Ordinary Shares A | Global Indemnity Limited | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Ordinary shares, par value | $ 0.0001 | ||||||
Stock Issued during Period | 13,463,864 | ||||||
Ordinary Shares B | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Ordinary shares, cancelled | 4,133,366 | ||||||
Ordinary shares, par value | $ 0.0001 | ||||||
Ordinary shares agreed to redeem, shares | 0 | 0 | 0 | 0 | |||
Ordinary Shares B | Global Indemnity Limited | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Ordinary shares, par value | $ 0.0001 | ||||||
Stock Issued during Period | 4,133,366 |
Information with Respect to Ord
Information with Respect to Ordinary Shares that were Surrendered, Repurchased or Redeemed (Detail) - Ordinary Shares A - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | 3,426,582 | 28,099 | |
Average Price Paid Per Share | $ 24.57 | $ 28.64 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | $ 0 | |
January 1 - 31, 2017 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1] | 13,656 | |
Average Price Paid Per Share | [1],[2] | $ 38.21 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | ||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | ||
February 1 - 28, 2017 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1] | 15,309 | |
Average Price Paid Per Share | [1],[2] | $ 40.18 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | ||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | ||
May 1 - 31, 2017 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1] | 586 | |
Average Price Paid Per Share | [1],[2] | $ 38.49 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | ||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | ||
December 1 - 31, 2017 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | 3,397,031 | ||
Average Price Paid Per Share | $ 24.44 | ||
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | ||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | ||
January 1-31, 2016 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1] | 12,410 | |
Average Price Paid Per Share | [1],[2] | $ 29.02 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | ||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | ||
February 1 - 29, 2016 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1] | 15,093 | |
Average Price Paid Per Share | [1],[2] | $ 28.25 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | ||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | ||
May 1 - 31, 2016 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1] | 596 | |
Average Price Paid Per Share | [1],[2] | $ 30.56 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | ||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 0 | ||
[1] | Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. | ||
[2] | Based on settlement date. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | Dec. 29, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fox Paine and Company | ||||
Related Party Transaction [Line Items] | ||||
Company's total outstanding voting power | 83.00% | |||
Minimum voting power required to nominate Directors | 25.00% | |||
Management fees | $ 2.2 | $ 2.1 | $ 1.9 | |
Unpaid management fees | $ 6.8 | 4.6 | ||
Investment advisory fee | $ 11 | |||
Stock repurchase program, number of shares purchased | 3,397,031 | |||
Reimbursement expense related to redemption of ordinary shares | 1.2 | |||
Fox Paine and Company | Global Indemnity Group Inc | American Reliable Insurance Company | ||||
Related Party Transaction [Line Items] | ||||
Investment advisory fee | $ 1.5 | |||
Investment bank fee as a percentage of the amount paid plus required capital to operate American Reliable on a standalone basis | 3.00% | |||
Aggregate investment advisory fee | $ 6.5 | |||
Ordinary shares of Global Indemnity issued to pay fees | 267,702 | |||
Cozen O'Connor | ||||
Related Party Transaction [Line Items] | ||||
Cost incurred for legal services rendered | $ 0.7 | |||
Crystal & Company | ||||
Related Party Transaction [Line Items] | ||||
Brokerage fee incurred | $ 0.2 | $ 0.2 |
Estimated Earned Premium and In
Estimated Earned Premium and Incurred Losses (Detail) - Hiscox Bermuda - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Assumed earned premium | $ 4 | $ 27 | $ 2,266 |
Assumed losses and loss adjustment expenses | $ (130) | $ (527) | $ 509 |
Net Payable Balances due from G
Net Payable Balances due from Global Indemnity Reinsurance (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Hiscox Bermuda | ||
Related Party Transaction [Line Items] | ||
Net payable balance | $ (10) | $ (107) |
Commitments And Contingencies -
Commitments And Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies [Line Items] | ||||
Commitment to purchase alternative investment | $ 50,000,000 | $ 40,000,000 | $ 50,000,000 | |
Future Funding Commitments | 57,714,000 | 24,768,000 | ||
Rental expense under operating leases, net of sub-lease income | 3,500,000 | 3,700,000 | $ 3,500,000 | |
Rental expense under operating leases, sub-lease income | 0 | $ 20,000 | $ 70,000 | |
Distressed Debt Fund, LP | ||||
Commitments and Contingencies [Line Items] | ||||
Funded commitment amount | 16,500,000 | |||
European Non-Performing Loan Fund, LP | ||||
Commitments and Contingencies [Line Items] | ||||
Funded commitment amount | 35,800,000 | |||
Private Middle Market Loans, LLC | ||||
Commitments and Contingencies [Line Items] | ||||
Funded commitment amount | 30,000,000 | |||
Unfunded Commitments | Distressed Debt Fund, LP | ||||
Commitments and Contingencies [Line Items] | ||||
Future Funding Commitments | 33,500,000 | |||
Unfunded Commitments | European Non-Performing Loan Fund, LP | ||||
Commitments and Contingencies [Line Items] | ||||
Future Funding Commitments | 14,200,000 | |||
Unfunded Commitments | Private Middle Market Loans, LLC | ||||
Commitments and Contingencies [Line Items] | ||||
Future Funding Commitments | $ 10,000,000 |
Future Minimum Cash Payments Un
Future Minimum Cash Payments Under Non-cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Future Minimum Payments Under Non-Cancelable Operating Leases With Initial Terms Of One-Year Or More [Line Items] | |
2,018 | $ 3,147 |
2,019 | 2,192 |
2,020 | 127 |
Total | $ 5,466 |
Share-Based Compensation Pla127
Share-Based Compensation Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | 136 Months Ended | 172 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2017 | Jun. 11, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Tax expense resulting from stock-based compensation deductions in excess of amounts reported for financial reporting purposes | $ 100,000 | $ 50,000 | |||||
Options not yet exercisable | 300,000 | 300,000 | |||||
Stock options awarded | 0 | 0 | 200,000 | ||||
Strike price per share | $ 28.37 | ||||||
Compensation expense, options | $ (400,000) | $ 300,000 | $ 400,000 | ||||
Proceed from exercise of options | $ 0 | 0 | $ 0 | ||||
Fair value of share | $ 42.02 | $ 42.02 | |||||
Weighted average fair value of options granted | $ 8.69 | ||||||
Compensation expense, restricted stock | $ 4,100,000 | $ 3,200,000 | $ 3,500,000 | ||||
Exercise price applicable | $ 25.13 | $ 25.13 | $ 25.94 | $ 25.38 | $ 25.38 | $ 25.13 | |
Accident year 2015 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options not yet exercisable | 60,000 | 60,000 | |||||
Accident Year 2016 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options not yet exercisable | 90,000 | 90,000 | |||||
Accident Year Two Thousand Seventeen [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options not yet exercisable | 150,000 | 150,000 | |||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense for non-vested restricted stock | $ 1,700,000 | $ 1,700,000 | |||||
Weighted average life of non-vested restricted stock | 1 year 6 months | ||||||
Number of shares granted | 49,624 | 156,531 | 174,828 | 1,248,650 | 1,629,633 | ||
Weighted average fair value per share | $ 39.42 | $ 29.44 | $ 28.24 | ||||
Restricted Stock | Key Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted | 22,503 | 121,346 | 138,507 | 806,762 | 1,089,118 | ||
Weighted average fair value per share | $ 38.21 | $ 28.97 | $ 28.37 | ||||
Restricted Stock | Key Employees | Time Based Vesting | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted | 96,585 | 83,875 | |||||
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% | 16.50% | ||||
Vesting date | Jan. 1, 2018 | Jan. 1, 2017 | Jan. 1, 2016 | ||||
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% | 16.50% | ||||
Vesting date | Jan. 1, 2019 | Jan. 1, 2018 | Jan. 1, 2017 | ||||
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% | 17.00% | ||||
Vesting date | Jan. 1, 2020 | Jan. 1, 2019 | Jan. 1, 2018 | ||||
Restricted Stock | Key Employees | Vesting Schedule Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of shares vested on each anniversary of the grant date | 100.00% | 100.00% | 100.00% | ||||
Vesting date | Mar. 15, 2020 | Mar. 15, 2019 | Mar. 15, 2018 | ||||
Percentage of stock award subject to vesting | 50.00% | 50.00% | 50.00% | ||||
Restricted Stock | Chief Executive Officer | Each subsequent anniversary date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted | 11,199 | 10,574 | |||||
Percentage of shares vested on each anniversary of the grant date | 33.33% | 33.33% | 33.33% | ||||
Vesting period | 3 years | 3 years | |||||
Percentage of annual bonus eligible to be paid in shares | 50.00% | ||||||
Restricted Stock | Non Employee Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted | 27,121 | 35,185 | 36,321 | ||||
Weighted average fair value per share | $ 40.42 | $ 31.05 | $ 27.73 | ||||
Restricted Stock | Chief Executive Officer And Other Key Employee | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted | 44,058 | ||||||
Percentage of shares vested on each anniversary of the grant date | 100.00% | ||||||
Vesting date | Jan. 1, 2018 | ||||||
Restricted Stock | Another Key Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares 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% | ||||||
Time Based Option Award | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options awarded | 300,000 | ||||||
Strike price per share | $ 17.87 | ||||||
Percentage of shares vested on each anniversary of the grant date | 33.33% | ||||||
Stock Options | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options awarded | 300,000 | ||||||
Exercise price applicable | $ 25 | $ 25 | |||||
Stock Options | Chief Executive Officer | December 31, 2015 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of shares vested on each anniversary of the grant date | 20.00% | ||||||
Stock Options | Chief Executive Officer | December 31, 2016 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of shares vested on each anniversary of the grant date | 30.00% | ||||||
Stock Options | Chief Executive Officer | December 31, 2017 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of shares vested on each anniversary of the grant date | 50.00% | ||||||
Performance Based Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options awarded | 200,000 | ||||||
Strike price per share | $ 28.37 | ||||||
Ordinary Shares A | Share Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for grant | 2,000,000 |
Summary of Award Activity for S
Summary of Award Activity for Stock Options Granted and Weighted Average Exercise Price Per Share (Detail) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Options | |||||
Options outstanding, beginning balance | 600,000 | 800,000 | 612,500 | ||
Options issued | 0 | 0 | 200,000 | ||
Options forfeited | (200,000) | ||||
Options exercised | 0 | [1] | 0 | 0 | |
Options expired | (12,500) | ||||
Options purchased by the Company | 0 | 0 | 0 | ||
Options outstanding, ending balance | 600,000 | 600,000 | 800,000 | ||
Options exercisable at December 31, 2017 | 300,000 | ||||
Weighted Average Exercise Price Per Share | |||||
Weighted average exercise price per share, beginning balance | $ 25.13 | $ 25.94 | $ 25.38 | ||
Options issued | 28.37 | ||||
Options forfeited | 28.37 | ||||
Options exercised | 0 | [1] | 0 | 0 | |
Options expired | 37.70 | ||||
Options purchased by the Company | 0 | 0 | 0 | ||
Weighted average exercise price per share, ending balance | 25.13 | $ 25.13 | $ 25.94 | ||
Options exercisable at December 31, 2017 | [1] | $ 17.87 | |||
Time Based Option Award | |||||
Options | |||||
Options outstanding, beginning balance | 600,000 | 600,000 | 612,500 | ||
Options exercised | 0 | 0 | 0 | ||
Options expired | (12,500) | ||||
Options purchased by the Company | 0 | 0 | 0 | ||
Options outstanding, ending balance | 600,000 | 600,000 | 600,000 | ||
Options exercisable at December 31, 2017 | 300,000 | ||||
Performance Based Stock Options | |||||
Options | |||||
Options outstanding, beginning balance | 200,000 | ||||
Options issued | 200,000 | ||||
Options forfeited | (200,000) | ||||
Options exercised | 0 | 0 | 0 | ||
Options purchased by the Company | 0 | 0 | 0 | ||
Options outstanding, ending balance | 200,000 | ||||
Weighted Average Exercise Price Per Share | |||||
Options issued | $ 28.37 | ||||
[1] | The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. |
Option Intrinsic Values (Detail
Option Intrinsic Values (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding | 600,000 | 600,000 | 800,000 | 612,500 | ||
Exercisable | 300,000 | |||||
Exercised | 0 | [1] | 0 | 0 | ||
Outstanding | $ 25.13 | $ 25.13 | $ 25.94 | $ 25.38 | ||
Exercisable | [1] | 17.87 | ||||
Exercised | $ 0 | [1] | $ 0 | $ 0 | ||
Outstanding | $ 10.1 | |||||
Exercisable | 7.2 | |||||
Exercised | [1] | $ 0 | ||||
[1] | The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. |
Options Exercisable (Detail)
Options Exercisable (Detail) | Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Price | $ / shares | $ 17.87 | [1] |
Number of options exercisable | shares | 300,000 | |
Exercise Price 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Price | $ / shares | $ 17.87 | |
Number of options exercisable | shares | 300,000 | |
[1] | The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. |
Significant Assumptions Used To
Significant Assumptions Used To Estimate Fair Value of Stock Options Granted Using Black Scholes Option Pricing Model (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Dividend yield | 0.00% |
Expected volatility | 31.59% |
Risk-free interest rate | 1.70% |
Expected option life | 5 years |
Summary of Range of Exercise Pr
Summary of Range of Exercise Prices of Options Outstanding (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options outstanding | 600,000 | 600,000 | 800,000 | |
Exercise Price Range One | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Ranges of Exercise Prices, minimum | $ 17.87 | $ 17.87 | $ 17.87 | |
Ranges of Exercise Prices, maximum | $ 19.99 | $ 19.99 | $ 19.99 | |
Options outstanding | 300,000 | 300,000 | 300,000 | |
Weighted Average Per Share Exercise Price | $ 17.87 | $ 17.87 | $ 17.87 | |
Weighted Average Remaining Life | 3 years 8 months 12 days | 4 years 8 months 12 days | 5 years 8 months 12 days | |
Exercise Price Range Two | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Ranges of Exercise Prices, minimum | $ 20 | |||
Ranges of Exercise Prices, maximum | $ 29.99 | |||
Options outstanding | 200,000 | |||
Weighted Average Per Share Exercise Price | $ 28.37 | |||
Weighted Average Remaining Life | 9 years | |||
Exercise Price Range Three | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Ranges of Exercise Prices, minimum | $ 30 | $ 30 | $ 30 | |
Ranges of Exercise Prices, maximum | $ 37.70 | $ 37.70 | $ 37.70 | |
Options outstanding | [1] | 300,000 | 300,000 | 300,000 |
Weighted Average Per Share Exercise Price | $ 32.38 | $ 32.38 | $ 32.38 | |
Weighted Average Remaining Life | 6 years 1 month 6 days | 7 years 1 month 6 days | 8 years 1 month 6 days | |
[1] | the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. |
Summary of Restricted Stock Gra
Summary of Restricted Stock Grants Since Inception (Detail) - Restricted Stock - shares | 12 Months Ended | 136 Months Ended | 172 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Awards | 49,624 | 156,531 | 174,828 | 1,248,650 | 1,629,633 |
Key Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Awards | 22,503 | 121,346 | 138,507 | 806,762 | 1,089,118 |
Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Awards | 27,121 | 35,185 | 36,321 | 441,888 | 540,515 |
Summary of Non-Vested Restricte
Summary of Non-Vested Restricted Shares Activity (Detail) - Restricted Stock - $ / shares | 12 Months Ended | 136 Months Ended | 172 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested restricted shares, beginning balance | 299,598 | 259,905 | 172,275 | ||
Shares issued | 49,624 | 156,531 | 174,828 | 1,248,650 | 1,629,633 |
Shares vested | (116,111) | (111,205) | (70,503) | ||
Shares forfeited | (20,299) | (5,633) | (16,695) | ||
Non-vested restricted shares, ending balance | 212,812 | 299,598 | 259,905 | 172,275 | 212,812 |
Weighted Average Price Per Share | |||||
Weighted average price per share, beginning balance | $ 28.02 | $ 26.33 | $ 23.76 | ||
Shares issued | 39.42 | 29.44 | 28.24 | ||
Shares vested | 29.75 | 26.11 | 25.31 | ||
Shares forfeited | 28.63 | 27.25 | 24.11 | ||
Weighted average price per share, ending balance | $ 29.67 | $ 28.02 | $ 26.33 | $ 23.76 | $ 29.67 |
401(k) Plan - Additional Inform
401(k) Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer's matching contribution percentage on first 6% contributed by employee to a defined contribution plan | 100.00% | ||
Maximum percentage of employee's earnings that the company may contribute to the defined contribution plan | 6.00% | ||
Defined benefit plan expense | $ 1.9 | $ 1.9 | $ 2 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||||||
Net income (loss) | $ (22,998) | $ (8,924) | $ 10,089 | $ 12,282 | $ 38,373 | $ 9,535 | $ (5,165) | $ 7,125 | $ (9,551) | $ 49,868 | $ 41,469 | ||||
Weighted average shares outstanding - basic | 17,308,663 | 17,246,717 | 24,253,657 | ||||||||||||
Net income (loss) per share | [1] | $ (0.55) | $ 2.89 | $ 1.71 | |||||||||||
Weighted average shares outstanding-diluted | 17,308,663 | 17,547,061 | 24,505,851 | ||||||||||||
Net income (loss) per share | $ (1.33) | $ (0.51) | $ 0.57 | $ 0.70 | $ 2.18 | $ 0.54 | $ (0.30) | $ 0.41 | $ (0.55) | [1] | $ 2.84 | [1] | $ 1.69 | [1] | |
[1] | For the year ended December 31, 2017, "diluted" loss per share is the same as "basic" loss per share since there was a net loss for the period. |
Reconciliation of Weighted Aver
Reconciliation of Weighted Average Shares for Basic and Diluted Earnings Per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | |||
Weighted average shares for basic earnings per share | 17,308,663 | 17,246,717 | 24,253,657 |
Weighted average shares for diluted earnings per share | 17,308,663 | 17,547,061 | 24,505,851 |
Restricted Stock | |||
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | |||
Non-vested restricted stock and options | 187,526 | 148,669 | |
Stock Options | |||
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | |||
Non-vested restricted stock and options | 112,818 | 103,525 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Line Items] | |||
Incremental shares included in calculation of diluted EPS | 17,680,209 | ||
Shares excluded from calculation of diluted earnings per share | 300,000 | 500,000 | |
Restricted Stock | |||
Earnings Per Share [Line Items] | |||
Incremental shares included in calculation of diluted EPS | 157,441 | ||
Stock Options | |||
Earnings Per Share [Line Items] | |||
Incremental shares included in calculation of diluted EPS | 214,105 |
Statutory Financial Informat139
Statutory Financial Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
United National Insurance Companies | |
Statutory Accounting Practices [Line Items] | |
Maximum amount of dividends that could be paid in 2018 under applicable laws and regulations without regulatory approval | $ 21,000,000 |
Dividends | 17,800,000 |
Dividend paid to parent company | $ 35,000,000 |
Dividends payable, date to be paid | Dec. 31, 2017 |
American Reliable Insurance Company | |
Statutory Accounting Practices [Line Items] | |
Dividends | $ 7,900,000 |
Penn- America Insurance Companies | |
Statutory Accounting Practices [Line Items] | |
Maximum amount of dividends that could be paid in 2018 under applicable laws and regulations without regulatory approval | 6,300,000 |
Maximum amount of dividends payable under applicable laws and regulations without regulatory approval which would be distributed to wholly owned parent company | 2,100,000 |
Dividends | 3,300,000 |
Global Indemnity Reinsurance | |
Statutory Accounting Practices [Line Items] | |
Maximum amount of dividends that could be paid in 2018 under applicable laws and regulations without regulatory approval | 227,100,000 |
Dividends | 120,000,000 |
Dividend paid to parent company | $ 100,000,000 |
Maximum reduction in statutory capital allowed without regulatory approval | 15.00% |
Maximum reduction in statutory capital and surplus allowed without regulatory approval | 25.00% |
Accrued dividends | $ 20,000,000 |
Information for Company's Unite
Information for Company's United States Insurance Companies, Net of Intercompany Eliminations as Determined in Accordance With Sap (Detail) - U.S. Insurance Companies - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus, as of end of period | $ 274,586 | $ 323,144 | $ 318,101 |
Statutory net income (loss) | $ (19,019) | $ 35,618 | $ 48,633 |
Information for United States I
Information for United States Insurance Companies & Global Indemnity Reinsurance, Net of Intercompany Eliminations, as Determined in Accordance With SAP and Bermuda (Detail) - Global Indemnity Reinsurance - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus, as of end of period | $ 908,433 | $ 838,923 | $ 713,842 |
Statutory net income | $ 29,647 | $ 32,768 | $ 864 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2017Segment | Dec. 31, 2016USD ($) |
Segment Reporting Information [Line Items] | ||||
Number of reportable business segments managed | Segment | 3 | |||
Proceeds from sale of capital stock | $ 18,700 | $ 18,700 | ||
Pretax gain on sale of capital stock | $ 6,900 | $ 6,900 | $ 6,857 |
Summary of Business Segment Inf
Summary of Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Revenues: | |||||||||||||||
Gross premiums written | $ 516,334 | $ 565,845 | $ 590,233 | ||||||||||||
Net premiums written | 450,180 | 470,940 | 501,244 | ||||||||||||
Net premiums earned | $ 109,216 | $ 108,619 | $ 107,073 | $ 113,126 | $ 109,472 | $ 119,553 | $ 117,804 | $ 121,636 | 438,034 | 468,465 | 504,143 | ||||
Other income | 6,582 | 10,345 | 3,400 | ||||||||||||
Total revenues | 444,616 | 478,810 | 507,543 | ||||||||||||
Losses and Expenses: | |||||||||||||||
Net losses and loss adjustment expenses | 66,556 | 82,395 | 57,700 | 62,561 | 48,946 | 72,162 | 78,111 | 64,784 | 269,212 | 264,003 | 275,368 | ||||
Acquisition costs and other underwriting expenses | 48,723 | 45,002 | 43,457 | 46,551 | 47,889 | 48,129 | 48,542 | 52,090 | 183,733 | 196,650 | 201,303 | ||||
Income (loss) from segments | (8,329) | 18,157 | 30,872 | ||||||||||||
Unallocated Items: | |||||||||||||||
Net investment income | 11,705 | 10,134 | 8,840 | 8,644 | 8,880 | 8,795 | 6,562 | 9,746 | 39,323 | 33,983 | 34,609 | ||||
Net realized investment gains | 2,426 | (963) | (662) | 775 | 30,778 | 1,928 | (3,492) | (7,493) | 1,576 | 21,721 | (3,374) | ||||
Corporate and other operating expenses | (25,714) | (17,338) | (24,448) | ||||||||||||
Interest expense | (16,906) | (8,905) | (4,913) | ||||||||||||
Income (loss) before income taxes | (10,304) | (16,779) | 7,753 | 9,280 | 46,535 | 10,598 | (11,468) | 1,953 | (10,050) | 47,618 | 32,746 | ||||
Income tax benefit | 499 | 2,250 | 8,723 | ||||||||||||
Net income | (22,998) | $ (8,924) | $ 10,089 | $ 12,282 | 38,373 | $ 9,535 | $ (5,165) | $ 7,125 | (9,551) | 49,868 | 41,469 | ||||
Total assets | 2,001,669 | 1,972,946 | 2,001,669 | 1,972,946 | 1,957,294 | ||||||||||
Commercial Lines Segment | |||||||||||||||
Revenues: | |||||||||||||||
Gross premiums written | [1] | 212,670 | 203,061 | 213,353 | |||||||||||
Net premiums written | [1] | 186,448 | 182,956 | 198,404 | |||||||||||
Net premiums earned | [1] | 178,798 | 189,342 | 198,404 | |||||||||||
Other income | [1] | 78 | 6,857 | ||||||||||||
Total revenues | [1] | 178,876 | 196,199 | 198,404 | |||||||||||
Losses and Expenses: | |||||||||||||||
Net losses and loss adjustment expenses | [1] | 62,834 | 75,401 | 98,471 | |||||||||||
Acquisition costs and other underwriting expenses | [1] | 75,990 | [2] | 81,477 | [3] | 84,623 | [4] | ||||||||
Income (loss) from segments | [1] | 40,052 | 39,321 | 15,310 | |||||||||||
Unallocated Items: | |||||||||||||||
Total assets | [1] | 905,184 | 790,564 | 905,184 | 790,564 | 714,688 | |||||||||
Personal Lines | |||||||||||||||
Revenues: | |||||||||||||||
Gross premiums written | [1] | 249,777 | [5] | 302,947 | [6] | 327,147 | [7] | ||||||||
Net premiums written | [1] | 209,799 | 228,183 | 253,157 | |||||||||||
Net premiums earned | [1] | 215,983 | 237,555 | 253,948 | |||||||||||
Other income | [1] | 6,288 | 3,712 | 3,493 | |||||||||||
Total revenues | [1] | 222,271 | 241,267 | 257,441 | |||||||||||
Losses and Expenses: | |||||||||||||||
Net losses and loss adjustment expenses | [1] | 165,798 | 174,528 | 163,045 | |||||||||||
Acquisition costs and other underwriting expenses | [1] | 93,113 | [8] | 99,109 | [9] | 97,687 | [10] | ||||||||
Income (loss) from segments | [1] | (36,640) | (32,370) | (3,291) | |||||||||||
Unallocated Items: | |||||||||||||||
Total assets | [1] | 467,525 | 470,508 | 467,525 | 470,508 | 524,912 | |||||||||
Reinsurance Operations | |||||||||||||||
Revenues: | |||||||||||||||
Gross premiums written | [11] | 53,887 | 59,837 | 49,733 | |||||||||||
Net premiums written | [11] | 53,933 | 59,801 | 49,683 | |||||||||||
Net premiums earned | [11] | 43,253 | 41,568 | 51,791 | |||||||||||
Other income | [11] | 216 | (224) | (93) | |||||||||||
Total revenues | [11] | 43,469 | 41,344 | 51,698 | |||||||||||
Losses and Expenses: | |||||||||||||||
Net losses and loss adjustment expenses | [11] | 40,580 | 14,074 | 13,852 | |||||||||||
Acquisition costs and other underwriting expenses | [11] | 14,630 | 16,064 | 18,993 | |||||||||||
Income (loss) from segments | [11] | (11,741) | 11,206 | 18,853 | |||||||||||
Unallocated Items: | |||||||||||||||
Total assets | [11],[12] | $ 628,960 | $ 711,874 | $ 628,960 | $ 711,874 | $ 717,694 | |||||||||
[1] | Includes business ceded to the Company's Reinsurance Operations. | ||||||||||||||
[2] | Includes federal excise tax of $714 relating to cessions from Commercial Lines to Reinsurance Operations. | ||||||||||||||
[3] | Includes federal excise tax of $756 relating to cessions from Commercial Lines to Reinsurance Operations. | ||||||||||||||
[4] | Includes federal excise tax of $1,047 relating to cessions from Commercial Lines to Reinsurance Operations. | ||||||||||||||
[5] | Includes ($1,338) of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. | ||||||||||||||
[6] | Includes $35,334 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. | ||||||||||||||
[7] | Includes $55,829 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. | ||||||||||||||
[8] | Includes federal excise tax of $862 relating to cessions from Personal Lines to Reinsurance Operations. | ||||||||||||||
[9] | Includes federal excise tax of $948 relating to cessions from Personal Lines to Reinsurance Operations. | ||||||||||||||
[10] | Includes federal excise tax of $1,270 relating to cessions from Personal Lines to Reinsurance Operations. | ||||||||||||||
[11] | External business only, excluding business assumed from affiliates. | ||||||||||||||
[12] | Comprised of Global Indemnity Reinsurance's total assets less its investment in subsidiaries |
Summary of Business Segment 144
Summary of Business Segment Information (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commercial Lines Segment | |||
Segment Reporting Information [Line Items] | |||
Federal excise tax relating to cessions from Insurance Operations to Reinsurance Operations | $ 714 | $ 756 | $ 1,047 |
Personal Lines | |||
Segment Reporting Information [Line Items] | |||
Federal excise tax relating to cessions from Insurance Operations to Reinsurance Operations | 862 | 948 | 1,270 |
American Reliable Insurance Company | Personal Lines | |||
Segment Reporting Information [Line Items] | |||
Ceded premiums written | $ (1,338) | $ 35,334 | $ 55,829 |
Quota share agreement percentage | 100.00% | 100.00% | 100.00% |
Net Federal Income Taxes and Ca
Net Federal Income Taxes and Cash Interest Paid (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flow Supplemental Disclosures [Line Items] | |||
Federal income taxes paid | $ 133 | $ 195 | $ 104 |
Federal income taxes recovered | 19 | 4,889 | 2 |
Interest paid | $ 14,504 | $ 8,771 | $ 3,926 |
Supplemental Cash Flow Infor146
Supplemental Cash Flow Information - Additional Information (Detail) | Jan. 01, 2015 |
Global Indemnity Group Inc | American Reliable Insurance Company | |
Cash Flow Supplemental Disclosures [Line Items] | |
Acquired voting equity interest | 100.00% |
Liabilities Assumed on Acquisit
Liabilities Assumed on Acquisition (Detail) - Global Indemnity Group Inc - American Reliable Insurance Company $ in Thousands | Jan. 01, 2015USD ($) |
Cash Flow Supplemental Disclosures [Line Items] | |
Fair value of assets acquired (including goodwill) | $ 383,668 |
Liabilities assumed | $ 283,871 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) $ in Millions | Jan. 31, 2018USD ($) |
Subsequent Events | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment, net of tax due to adoption new accounting standard | $ 10 |
Summary of Quarterly Performanc
Summary of Quarterly Performance (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Quarterly Financial Information [Line Items] | ||||||||||||||
Net premiums earned | $ 109,216 | $ 108,619 | $ 107,073 | $ 113,126 | $ 109,472 | $ 119,553 | $ 117,804 | $ 121,636 | $ 438,034 | $ 468,465 | $ 504,143 | |||
Net investment income | 11,705 | 10,134 | 8,840 | 8,644 | 8,880 | 8,795 | 6,562 | 9,746 | 39,323 | 33,983 | 34,609 | |||
Net realized investment gains (losses) | 2,426 | (963) | (662) | 775 | 30,778 | 1,928 | (3,492) | (7,493) | 1,576 | 21,721 | (3,374) | |||
Net losses and loss adjustment expenses | 66,556 | 82,395 | 57,700 | 62,561 | 48,946 | 72,162 | 78,111 | 64,784 | 269,212 | 264,003 | 275,368 | |||
Acquisition costs and other underwriting expenses | 48,723 | 45,002 | 43,457 | 46,551 | 47,889 | 48,129 | 48,542 | 52,090 | 183,733 | 196,650 | 201,303 | |||
Income (loss) before income taxes | (10,304) | (16,779) | 7,753 | 9,280 | 46,535 | 10,598 | (11,468) | 1,953 | (10,050) | 47,618 | 32,746 | |||
Net income (loss) | $ (22,998) | $ (8,924) | $ 10,089 | $ 12,282 | $ 38,373 | $ 9,535 | $ (5,165) | $ 7,125 | $ (9,551) | $ 49,868 | $ 41,469 | |||
Per share data - Diluted: | ||||||||||||||
Net income (loss) | $ (1.33) | $ (0.51) | $ 0.57 | $ 0.70 | $ 2.18 | $ 0.54 | $ (0.30) | $ 0.41 | $ (0.55) | [1] | $ 2.84 | [1] | $ 1.69 | [1] |
[1] | For the year ended December 31, 2017, "diluted" loss per share is the same as "basic" loss per share since there was a net loss for the period. |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Events - USD ($) $ / shares in Units, $ in Millions | Mar. 08, 2018 | Mar. 04, 2018 |
Subsequent Event [Line Items] | ||
Dividend declared date | Mar. 4, 2018 | |
Dividend payable, per share | $ 0.25 | |
Dividend payable date | Mar. 29, 2018 | |
Dividend payable, date of record | Mar. 21, 2018 | |
Global Indemnity Group Inc | American Reliable Insurance Company | ||
Subsequent Event [Line Items] | ||
Reserve Settlement | $ 41.5 | |
Proceeds for loss and loss adjustment expenses paid | 38.8 | |
Proceeds for accrued interest | 6.2 | |
Payment for the difference between the agreed upon purchase price and actual settlement | $ 3.5 |
Summary Of Investments Other Th
Summary Of Investments Other Than Investments In Related Parties (Detail) $ in Thousands | Dec. 31, 2017USD ($) | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | $ 1,445,879 | [1] |
Value | 1,459,486 | |
Amount Included in the Balance Sheet | 1,459,486 | |
Fixed Maturities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 1,243,144 | [1] |
Value | 1,241,437 | |
Amount Included in the Balance Sheet | 1,241,437 | |
Fixed Maturities | U.S. Treasury and Agency Obligations | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 105,311 | [1] |
Value | 104,680 | |
Amount Included in the Balance Sheet | 104,680 | |
Fixed Maturities | Obligations of States and Political Subdivisions | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 94,947 | [1] |
Value | 95,114 | |
Amount Included in the Balance Sheet | 95,114 | |
Fixed Maturities | Mortgage Backed And Asset Backed Securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 494,825 | [1] |
Value | 492,846 | |
Amount Included in the Balance Sheet | 492,846 | |
Fixed Maturities | Public Utility, Bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 23,467 | [1] |
Value | 23,504 | |
Amount Included in the Balance Sheet | 23,504 | |
Fixed Maturities | All Other Corporate Bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 524,594 | [1] |
Value | 525,293 | |
Amount Included in the Balance Sheet | 525,293 | |
Equity securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 124,915 | [1] |
Value | 140,229 | |
Amount Included in the Balance Sheet | 140,229 | |
Equity securities | Public Utility, Equities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 9,444 | [1] |
Value | 9,748 | |
Amount Included in the Balance Sheet | 9,748 | |
Equity securities | Industrial, Miscellaneous, and All Others | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 115,471 | [1] |
Value | 130,481 | |
Amount Included in the Balance Sheet | 130,481 | |
Other long-term investments | Other Invested Assets | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 77,820 | [1] |
Value | 77,820 | |
Amount Included in the Balance Sheet | $ 77,820 | |
[1] | Original cost of equity securities; original cost of fixed maturities adjusted for amortization of premiums and accretion of discounts; original cost for other long-term investments adjusted for income or loss earned on investments in accordance with equity method of accounting. All amounts are shown net of impairment losses. |
Condensed Financial Informat152
Condensed Financial Information of Registrant (Parent Only) Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
ASSETS | |||||
Fixed maturities | $ 1,241,437 | $ 1,240,031 | |||
Cash and cash equivalents | 74,414 | 75,110 | $ 67,037 | $ 58,823 | |
Receivable for securities | 1,543 | ||||
Other assets | 75,384 | 51,104 | |||
Total assets | 2,001,669 | 1,972,946 | 1,957,294 | ||
Liabilities: | |||||
Debt | 294,713 | 163,143 | |||
Other liabilities | 49,666 | 45,761 | |||
Total liabilities | 1,283,275 | 1,174,995 | |||
Commitments and contingencies | |||||
Shareholders' equity: | |||||
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued: 10,102,927 and 13,436,548, respectively; A ordinary shares outstanding: 10,073,376 and 13,436,548, respectively; B ordinary shares issued and outstanding: 4,133,366 and 4,133,366, respectively | 2 | 2 | |||
Additional paid-incapital | 434,730 | 430,283 | |||
Accumulated other comprehensive income, net of tax | 8,983 | (618) | 4,078 | ||
Retained earnings | 275,838 | 368,284 | |||
Total shareholders' equity | 718,394 | 797,951 | 749,926 | ||
Total liabilities and shareholders' equity | 2,001,669 | 1,972,946 | |||
Global Indemnity Limited | |||||
Shareholders' equity: | |||||
Additional paid-incapital | 434,700 | ||||
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 | $ 2 | $ 2 | |
Parent Company | Global Indemnity Limited | |||||
ASSETS | |||||
Fixed maturities | 13,118 | 3,770 | |||
Cash and cash equivalents | 11,089 | 91 | |||
Intercompany note receivable | [1] | 750,397 | |||
Equity in unconsolidated subsidiaries | [1] | 1,207,590 | 292,195 | ||
Receivable for securities | [1] | 1 | |||
Due from affiliates | 4,618 | ||||
Other assets | 20,681 | 59 | |||
Total assets | 1,257,096 | 1,046,513 | |||
Liabilities: | |||||
Debt | 222,483 | 96,497 | |||
Intercompany notes payable | [1] | 290,498 | 141,998 | ||
Interest payable | 3,152 | 990 | |||
Due to affiliates | [1] | 12,465 | 8,759 | ||
Other liabilities | 10,104 | 318 | |||
Total liabilities | 538,702 | 248,562 | |||
Commitments and contingencies | |||||
Shareholders' equity: | |||||
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued: 10,102,927 and 13,436,548, respectively; A ordinary shares outstanding: 10,073,376 and 13,436,548, respectively; B ordinary shares issued and outstanding: 4,133,366 and 4,133,366, respectively | 2 | 2 | |||
Preferred shares, $0.0001 par value, 100,000,000 shares authorized, none issued and outstanding | |||||
Additional paid-incapital | 434,730 | 430,283 | |||
Accumulated other comprehensive income, net of tax | 8,983 | (618) | |||
Retained earnings | 275,838 | 368,284 | |||
Total shareholders' equity | 718,394 | 797,951 | |||
Total liabilities and shareholders' equity | 1,257,096 | $ 1,046,513 | |||
Parent Company | Ordinary Shares A | Global Indemnity Limited | |||||
Shareholders' equity: | |||||
A ordinary shares in treasury, at cost: 29,551 and 0 shares, respectively | $ (1,159) | ||||
[1] | This item has been eliminated in the Company's Consolidated Financial Statements. |
Condensed Financial Informat153
Condensed Financial Information of Registrant (Parent Only) Balance Sheets (Parenthetical) (Detail) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 07, 2016 |
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | |
Ordinary shares, shares authorized | 900,000,000 | 900,000,000 | |
Ordinary Shares A | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0.0001 | ||
Ordinary shares, shares issued | 10,102,927 | 13,436,548 | |
Ordinary shares, shares outstanding | 10,073,376 | 13,436,548 | |
Treasury shares, shares | 29,551 | 0 | |
Ordinary Shares B | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, par value | 0.0001 | ||
Ordinary shares, shares issued | 4,133,366 | 4,133,366 | |
Ordinary shares, shares outstanding | 4,133,366 | 4,133,366 | |
Global Indemnity Limited | Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | |
Ordinary shares, shares authorized | 900,000,000 | 900,000,000 | |
Preferred shares, par value | $ 0.0001 | $ 0.0001 | |
Preferred shares, shares authorized | 100,000,000 | 100,000,000 | |
Preferred shares, shares issued | 0 | 0 | |
Preferred shares, shares outstanding | 0 | 0 | |
Global Indemnity Limited | Ordinary Shares A | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, par value | 0.0001 | ||
Global Indemnity Limited | Ordinary Shares A | Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, shares issued | 10,102,927 | 13,436,548 | |
Ordinary shares, shares outstanding | 10,073,376 | 13,436,548 | |
Treasury shares, shares | 29,551 | 0 | |
Global Indemnity Limited | Ordinary Shares B | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0.0001 | ||
Global Indemnity Limited | Ordinary Shares B | Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, shares issued | 4,133,366 | 4,133,366 | |
Ordinary shares, shares outstanding | 4,133,366 | 4,133,366 |
Condensed Financial Informat154
Condensed Financial Information of Registrant (Parent Only) Statement of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenues: | ||||||||||||
Net investment income | $ 11,705 | $ 10,134 | $ 8,840 | $ 8,644 | $ 8,880 | $ 8,795 | $ 6,562 | $ 9,746 | $ 39,323 | $ 33,983 | $ 34,609 | |
Net realized investment losses | 2,426 | (963) | (662) | 775 | 30,778 | 1,928 | (3,492) | (7,493) | 1,576 | 21,721 | (3,374) | |
Total revenues | 485,515 | 534,514 | 538,778 | |||||||||
Expenses: | ||||||||||||
Interest expense | 16,906 | 8,905 | 4,913 | |||||||||
Income (loss) before income taxes | (10,304) | (16,779) | 7,753 | 9,280 | 46,535 | 10,598 | (11,468) | 1,953 | (10,050) | 47,618 | 32,746 | |
Equity in earnings of unconsolidated subsidiaries | 4,741 | 5,190 | 2,533 | |||||||||
Net income | $ (22,998) | $ (8,924) | $ 10,089 | $ 12,282 | $ 38,373 | $ 9,535 | $ (5,165) | $ 7,125 | (9,551) | 49,868 | 41,469 | |
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized holding gains (losses) | 9,677 | 10,058 | (17,457) | |||||||||
Other comprehensive income (loss), net of tax | 9,601 | (4,696) | (19,306) | |||||||||
Comprehensive income, net of tax | 50 | 45,172 | 22,163 | |||||||||
Parent Company | Global Indemnity PLC | ||||||||||||
Expenses: | ||||||||||||
Intercompany interest expense | [1] | 1,296 | ||||||||||
Other expenses | 8,203 | |||||||||||
Income (loss) before income taxes | (9,499) | |||||||||||
Equity in earnings of unconsolidated subsidiaries | [1] | 50,968 | ||||||||||
Net income | 41,469 | |||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Equity in other comprehensive loss of unconsolidated subsidiaries | [1] | (19,306) | ||||||||||
Other comprehensive income (loss), net of tax | (19,306) | |||||||||||
Comprehensive income, net of tax | $ 22,163 | |||||||||||
Parent Company | Global Indemnity Limited | ||||||||||||
Revenues: | ||||||||||||
Net investment income | 361 | 28 | ||||||||||
Net realized investment losses | (368) | |||||||||||
Total revenues | (7) | 28 | ||||||||||
Expenses: | ||||||||||||
Intercompany interest expense | [1] | 2,477 | 198 | |||||||||
Interest expense | 15,872 | 1,172 | ||||||||||
Other expenses | 16,801 | 661 | ||||||||||
Income (loss) before income taxes | (35,157) | (2,003) | ||||||||||
Equity in earnings of unconsolidated subsidiaries | [1] | 25,606 | 51,871 | |||||||||
Net income | (9,551) | 49,868 | ||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized holding gains (losses) | 43 | (17) | ||||||||||
Equity in other comprehensive loss of unconsolidated subsidiaries | [1] | 9,558 | (4,679) | |||||||||
Other comprehensive income (loss), net of tax | 9,601 | (4,696) | ||||||||||
Comprehensive income, net of tax | $ 50 | $ 45,172 | ||||||||||
[1] | This item has been eliminated in the Company's Consolidated Financial Statements. |
Condensed Financial Informat155
Condensed Financial Information of Registrant (Parent Only) Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | $ (23,650) | $ (24,396) | $ 3,750 |
Cash flows from investing activities: | |||
Proceeds from sale of fixed maturities | 918,439 | 381,389 | 647,404 |
Proceeds from maturity of fixed maturities | 145,475 | 86,009 | 157,845 |
Purchase of fixed maturities | (1,078,199) | (437,690) | (627,983) |
Net cash provided by (used for) investing activities | (24,210) | 42,161 | 197,243 |
Cash flows from financing activities: | |||
Redemption of ordinary shares | (83,015) | (189,770) | |
Proceeds from issuance of subordinated notes | 130,000 | 100,000 | |
Debt issuance cost | (4,246) | (14) | (3,659) |
Purchase of A ordinary shares | (1,159) | (805) | (333) |
Tax benefit on share-based compensation expense | 127 | 10 | |
Net cash provided by (used for) financing activities | 47,164 | (9,692) | (192,779) |
Net change in cash and equivalents | (696) | 8,073 | 8,214 |
Cash and cash equivalents at beginning of period | 75,110 | 67,037 | 58,823 |
Cash and cash equivalents at end of period | 74,414 | 75,110 | 67,037 |
Parent Company | Global Indemnity PLC | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 95,891 | ||
Cash flows from financing activities: | |||
Redemption of ordinary shares | (189,770) | ||
Proceeds from issuance of subordinated notes | 100,000 | ||
Debt issuance cost | (3,659) | ||
Purchase of A ordinary shares | (333) | ||
Tax benefit on share-based compensation expense | 10 | ||
Net cash provided by (used for) financing activities | (93,752) | ||
Net change in cash and equivalents | 2,139 | ||
Cash and cash equivalents at beginning of period | 2,185 | 46 | |
Cash and cash equivalents at end of period | $ 2,185 | ||
Parent Company | Global Indemnity Limited | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (24,927) | 1 | |
Cash flows from investing activities: | |||
Proceeds from disposition of subsidiaries | 456 | ||
Dividend received from subsidiary | 100,000 | ||
Capital contribution to a subsidiary | (96,000) | (450) | |
Proceeds from sale of fixed maturities | 12,389 | 84 | |
Proceeds from maturity of fixed maturities | 10,000 | ||
Purchase of fixed maturities | (32,044) | ||
Net cash provided by (used for) investing activities | (5,655) | 90 | |
Cash flows from financing activities: | |||
Redemption of ordinary shares | (83,015) | ||
Proceeds from issuance of subordinated notes | 130,000 | ||
Debt issuance cost | (4,246) | ||
Purchase of A ordinary shares | (1,159) | ||
Net cash provided by (used for) financing activities | 41,580 | ||
Net change in cash and equivalents | 10,998 | 91 | |
Cash and cash equivalents at beginning of period | 91 | ||
Cash and cash equivalents at end of period | $ 11,089 | $ 91 |
Supplementary Insurance Info156
Supplementary Insurance Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Premium Revenue | $ 438,034 | $ 468,465 | $ 504,143 |
Benefits, Claims, Losses And Settlement Expenses | 269,212 | 264,003 | 275,368 |
Amortization of Deferred Policy Acquisition Costs | 108,964 | 114,317 | 86,170 |
Net Written Premium | 450,180 | 470,940 | 501,244 |
Commercial Lines Segment | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 21,222 | 19,755 | 20,784 |
Future Policy Benefits, Losses, Claims And Loss Expenses | 419,042 | 458,645 | 524,607 |
Unearned Premiums | 102,191 | 94,698 | 100,027 |
Other Policy and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 178,798 | 189,342 | 198,404 |
Benefits, Claims, Losses And Settlement Expenses | 62,834 | 75,401 | 98,471 |
Amortization of Deferred Policy Acquisition Costs | 42,008 | 42,361 | 43,821 |
Net Written Premium | 186,448 | 182,956 | 198,404 |
Personal Lines | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 27,563 | 28,381 | 31,900 |
Future Policy Benefits, Losses, Claims And Loss Expenses | 120,255 | 127,350 | 94,359 |
Unearned Premiums | 137,704 | 157,464 | 169,669 |
Other Policy and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 215,983 | 237,555 | 253,948 |
Benefits, Claims, Losses And Settlement Expenses | 165,798 | 174,528 | 163,045 |
Amortization of Deferred Policy Acquisition Costs | 56,616 | 61,416 | 31,291 |
Net Written Premium | 209,799 | 228,183 | 253,157 |
Reinsurance Operations | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 12,862 | 9,765 | 3,833 |
Future Policy Benefits, Losses, Claims And Loss Expenses | 95,367 | 65,047 | 61,081 |
Unearned Premiums | 45,502 | 34,822 | 16,589 |
Other Policy and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 43,253 | 41,568 | 51,791 |
Benefits, Claims, Losses And Settlement Expenses | 40,580 | 14,074 | 13,852 |
Amortization of Deferred Policy Acquisition Costs | 10,340 | 10,540 | 11,058 |
Net Written Premium | $ 53,933 | $ 59,801 | $ 49,683 |
Supplementary Insurance Info157
Supplementary Insurance Information Unallocated Corporate Items (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Unallocated Corporate Items [Line Items] | |||
Net Investment Income | $ 39,323 | $ 33,983 | $ 34,609 |
Corporate and Other Operating Expenses | $ 25,714 | $ 17,338 | $ 24,448 |
Reinsurance Earned Premiums (De
Reinsurance Earned Premiums (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||||||||
Direct Amount | $ 440,109 | $ 466,750 | $ 452,441 | |||||||||
Ceded to Other Companies | [1] | 79,886 | 96,552 | 92,852 | ||||||||
Assumed from Other Companies | 77,811 | 98,267 | 144,554 | |||||||||
Net Amount | $ 109,216 | $ 108,619 | $ 107,073 | $ 113,126 | $ 109,472 | $ 119,553 | $ 117,804 | $ 121,636 | 438,034 | 468,465 | 504,143 | |
Property & Liability Insurance | ||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||||||||
Direct Amount | 440,109 | 466,750 | 452,441 | |||||||||
Ceded to Other Companies | 79,886 | 96,552 | 92,852 | |||||||||
Assumed from Other Companies | 77,811 | 98,267 | 144,554 | |||||||||
Net Amount | $ 438,034 | $ 468,465 | $ 504,143 | |||||||||
Percentage of Assumed to Net | 17.80% | 21.00% | 28.70% | |||||||||
[1] | Includes ceded written premiums of ($1.3) million, $35.3 million, and $55.8 million and ceded earned premiums of $13.5 million, $43.2 million and $59.5 million to American Bankers Insurance Company for the years ended December 31, 2017, 2016, and 2015, respectively. |
Valuation and Qualifying Acc159
Valuation and Qualifying Accounts and Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loans and Leases Receivable | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Charged (Credited) to Other Accounts | $ 0 | $ 0 | $ 0 |
Other Deductions | 0 | 0 | 0 |
Allowance for Loan and Lease Losses, Real Estate | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Allowance for Doubtful Accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 1,928 | 1,646 | 1,518 |
Charged (Credited) to Costs and Expenses | 251 | 282 | 128 |
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Balance at End of Period | 2,179 | 1,928 | 1,646 |
Valuation Allowance of Deferred Tax Assets | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Allowance for Reinsurance Recoverable | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 8,040 | 9,675 | 9,350 |
Charged (Credited) to Costs and Expenses | (1,635) | 325 | |
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 8,040 | $ 8,040 | $ 9,675 |
Supplementary Information fo160
Supplementary Information for Property Casualty Underwriters (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||
Deferred Policy Acquisition Costs | $ 61,647 | $ 57,901 | $ 56,517 |
Reserves for Unpaid Claims and Claim Adjustment Expenses | 634,664 | 651,042 | 680,047 |
Discount If Any Deducted | 1,200 | 2,000 | 3,000 |
Unearned Premiums | 285,397 | 286,984 | 286,285 |
Earned Premiums | 438,034 | 468,465 | 504,143 |
Net Investment Income | 39,323 | 33,983 | 34,609 |
Claims and Claim Adjustment Expense Incurred Related To Current Year | 323,112 | 321,255 | 310,066 |
Claims and Claim Adjustment Expense Incurred Related To Prior Year | (53,900) | (57,252) | (34,698) |
Amortization Of Deferred Policy Acquisition Costs | 108,964 | 114,317 | 86,170 |
Paid Claims and Claim Adjustment Expenses | 271,756 | 317,369 | 332,417 |
Premiums Written | $ 450,180 | $ 470,940 | $ 501,244 |