Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Registrant Name | Global Indemnity Ltd | |
Entity Central Index Key | 0001494904 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-34809 | |
Entity Incorporation, State or Country Code | E9 | |
Entity Tax Identification Number | 98-1304287 | |
Entity Address, Address Line One | 27 HOSPITAL ROAD | |
Entity Address, Address Line Two | GEORGE TOWN | |
Entity Address, City or Town | GRAND CAYMAN | |
Entity Address, Country | KY | |
Entity Address, Postal Zip Code | KY1-9008 | |
City Area Code | 345 | |
Local Phone Number | 949-0100 | |
Ordinary Shares A | ||
Document Information [Line Items] | ||
Entity Ordinary Shares, Shares Outstanding | 10,185,459 | |
Title of each class | A Ordinary Shares | |
Trading Symbol | GBLI | |
Name of each exchange on which registered | NASDAQ | |
Ordinary Shares B | ||
Document Information [Line Items] | ||
Entity Ordinary Shares, Shares Outstanding | 4,133,366 | |
7.75% Subordinated Notes due 2045 | ||
Document Information [Line Items] | ||
Title of each class | 7.75% Subordinated Notes due 2045 | |
Trading Symbol | GBLIZ | |
Name of each exchange on which registered | NASDAQ | |
7.875% Subordinated Notes due 2047 | ||
Document Information [Line Items] | ||
Title of each class | 7.875% Subordinated Notes due 2047 | |
Trading Symbol | GBLIL | |
Name of each exchange on which registered | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fixed maturities: | ||
Available for sale, at fair value (amortized cost: $1,252,931 and $1,231,568; net of allowance of: 2020 - $0) | $ 1,271,706 | $ 1,253,159 |
Equity securities, at fair value | 174,386 | 263,104 |
Other invested assets | 47,308 | 47,279 |
Total investments | 1,493,400 | 1,563,542 |
Cash and cash equivalents | 59,751 | 44,271 |
Premiums receivable, net of allowance for expected credit loss of $2,746 at March 31, 2020 | 115,331 | 118,035 |
Reinsurance receivables, net of allowance for expected credit loss of $8,992 at March 31, 2020 | 83,074 | 83,938 |
Funds held by ceding insurers | 47,096 | 48,580 |
Federal income taxes receivable | 5,510 | 10,989 |
Deferred federal income taxes | 42,117 | 31,077 |
Deferred acquisition costs | 69,615 | 70,677 |
Intangible assets | 21,359 | 21,491 |
Goodwill | 6,521 | 6,521 |
Prepaid reinsurance premiums | 15,512 | 16,716 |
Other assets | 69,218 | 60,048 |
Total assets | 2,028,504 | 2,075,885 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 639,468 | 630,181 |
Unearned premiums | 308,301 | 314,861 |
Ceded balances payable | 23,932 | 20,404 |
Payable for securities purchased | 2,585 | 850 |
Contingent commissions | 5,841 | 11,928 |
Debt | 294,784 | 296,640 |
Other liabilities | 78,957 | 74,212 |
Total liabilities | 1,353,868 | 1,349,076 |
Commitments and contingencies (Note 11) | ||
Shareholders’ equity: | ||
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued: 10,305,404 and 10,282,277 respectively; A ordinary shares outstanding: 10,185,459 and 10,167,056, respectively; B ordinary shares issued and outstanding: 4,133,366 and 4,133,366, respectively | 2 | 2 |
Additional paid-in capital | 443,641 | 442,403 |
Accumulated other comprehensive income, net of taxes | 12,560 | 17,609 |
Retained earnings | 222,549 | 270,768 |
Total shareholders’ equity | 674,636 | 726,809 |
Total liabilities and shareholders’ equity | 2,028,504 | 2,075,885 |
Ordinary Shares A | ||
Shareholders’ equity: | ||
A ordinary shares in treasury, at cost: 119,945 and 115,221 shares, respectively | (4,116) | (3,973) |
Total shareholders’ equity | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available for sale, amortized cost | $ 1,252,931 | $ 1,231,568 |
Available-for-sale, net of allowance | 0 | |
Premiums receivable, allowance for expected credit loss | 2,746 | 2,754 |
Reinsurance receivable, allowance for expected credit loss | $ 8,992 | $ 8,992 |
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 | 10,305,404 | 10,282,277 |
Ordinary shares, shares outstanding | 10,185,459 | 10,167,056 |
Treasury shares, shares | 119,945 | 115,221 |
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 | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Revenues: | |||
Gross written premiums | $ 155,724 | $ 142,201 | |
Net written premiums | 139,112 | 123,416 | |
Net earned premiums | 144,468 | 122,089 | |
Net investment income | 10,129 | 7,219 | |
Net realized investment gains (losses): | |||
Other than temporary impairment losses on investments | 0 | (1,897) | |
Other net realized investment gains (losses) | (68,162) | 12,287 | |
Total net realized investment gains (losses) | (68,162) | 10,390 | |
Other income | 165 | 488 | |
Total revenues | 86,600 | 140,186 | |
Losses and Expenses: | |||
Net losses and loss adjustment expenses | 77,647 | 58,321 | |
Acquisition costs and other underwriting expenses | 56,412 | 49,743 | |
Corporate and other operating expenses | 4,223 | 3,205 | |
Interest expense | 4,865 | 5,023 | |
Income (loss) before income taxes | (56,547) | 23,894 | |
Income tax expense (benefit) | (11,969) | 4,294 | |
Net income (loss) | $ (44,578) | $ 19,600 | |
Net income (loss) | |||
Basic | [1] | $ (3.13) | $ 1.38 |
Diluted | [1] | $ (3.13) | $ 1.37 |
Weighted-average number of shares outstanding | |||
Basic | 14,249,551 | 14,153,918 | |
Diluted | [2] | 14,249,551 | 14,315,091 |
Cash dividends declared per share | $ 0.25 | $ 0.25 | |
[1] | For the quarter ended March 31, 2020, weighted average shares outstanding – basic was used to calculate diluted earnings per share due to a net loss for the period. | ||
[2] | For the quarter ended March 31, 2020, weighted average shares outstanding – basic was used to calculate diluted earnings per share due to a net loss for the period. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $ (44,578) | $ 19,600 |
Other comprehensive income (loss), net of tax: | ||
Unrealized holding gain (loss) | (2,032) | 20,785 |
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | 0 | (1) |
Reclassification adjustment for losses included in net income (loss) | (1,714) | 1,922 |
Unrealized foreign currency translation gain (loss) | (1,303) | 194 |
Other comprehensive income (loss), net of tax | (5,049) | 22,900 |
Comprehensive income (loss), net of tax | $ (49,627) | $ 42,500 |
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, 2018 | 76,642 | 10,171,954 | 4,133,366 | |||||
A ordinary shares purchased | 27,028 | |||||||
Retirement of shares | 6,779 | |||||||
Ordinary shares issued under share incentive plans | 36,180 | |||||||
Ordinary shares issued to directors | 15,842 | |||||||
Number at Mar. 31, 2019 | 110,449 | 10,223,976 | 4,133,366 | |||||
Balance at Dec. 31, 2018 | $ 438,182 | $ (21,231) | $ 215,132 | $ (3,026) | $ 1 | $ 1 | ||
A ordinary shares purchased, at cost | $ (949) | |||||||
Other comprehensive income (loss), net of tax: | ||||||||
Change in unrealized holding gains (losses) | 22,707 | |||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | $ (1) | (1) | ||||||
Unrealized foreign currency translation gains (losses) | 194 | 194 | ||||||
Other comprehensive income (loss), net of tax | 22,900 | 22,900 | ||||||
Cumulative effect adjustment resulting from adoption of new accounting guidance | (5) | |||||||
Net income (loss) | 19,600 | 19,600 | ||||||
Dividends to shareholders | (3,551) | (3,551) | ||||||
Share compensation plans | 601 | |||||||
Balance at Mar. 31, 2019 | 667,655 | 438,783 | 1,669 | 231,176 | $ (3,975) | $ 1 | $ 1 | |
Number at Dec. 31, 2019 | 115,221 | 10,282,277 | 4,133,366 | |||||
A ordinary shares purchased | 4,724 | |||||||
Retirement of shares | 0 | |||||||
Ordinary shares issued under share incentive plans | 0 | |||||||
Ordinary shares issued to directors | 23,127 | |||||||
Number at Mar. 31, 2020 | 119,945 | 10,305,404 | 4,133,366 | |||||
Balance at Dec. 31, 2019 | 726,809 | 442,403 | 17,609 | 270,768 | $ (3,973) | $ 1 | $ 1 | |
A ordinary shares purchased, at cost | $ (143) | |||||||
Other comprehensive income (loss), net of tax: | ||||||||
Change in unrealized holding gains (losses) | (3,746) | |||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | 0 | 0 | ||||||
Unrealized foreign currency translation gains (losses) | (1,303) | (1,303) | ||||||
Other comprehensive income (loss), net of tax | (5,049) | (5,049) | ||||||
Cumulative effect adjustment resulting from adoption of new accounting guidance | 0 | |||||||
Net income (loss) | (44,578) | (44,578) | ||||||
Dividends to shareholders | (3,641) | (3,641) | ||||||
Share compensation plans | 1,238 | |||||||
Balance at Mar. 31, 2020 | $ 674,636 | $ 443,641 | $ 12,560 | $ 222,549 | $ (4,116) | $ 1 | $ 1 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Retained Earnings | ||
Dividend payable, per share | $ 0.25 | $ 0.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (44,578) | $ 19,600 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
Amortization and depreciation | 1,775 | 1,783 |
Amortization of debt issuance costs | 66 | 66 |
Restricted stock and stock option expense | 1,238 | 601 |
Deferred federal income taxes | (11,969) | 4,248 |
Amortization of bond premium and discount, net | 1,399 | 1,189 |
Net realized investment (gains) loss | 68,162 | (10,390) |
Equity in the earnings of equity method limited liability investments | (710) | 4,103 |
Changes in: | ||
Premiums receivable, net | 2,704 | (4,798) |
Reinsurance receivables, net | 864 | 12,072 |
Funds held by ceding insurers | 182 | 4,498 |
Unpaid losses and loss adjustment expenses | 9,287 | (34,072) |
Unearned premiums | (6,560) | (228) |
Ceded balances payable | 3,528 | (421) |
Other assets and liabilities, net | (6,262) | (18,147) |
Contingent commissions | (6,087) | (3,466) |
Federal income tax receivable/payable | 5,479 | (203) |
Deferred acquisition costs, net | 1,062 | (1,178) |
Prepaid reinsurance premiums | 1,204 | 1,553 |
Net cash provided by (used for) operating activities | 20,784 | (23,190) |
Cash flows from investing activities: | ||
Proceeds from sale of fixed maturities | 124,070 | 61,258 |
Proceeds from sale of equity securities | 49,546 | 15,354 |
Proceeds from maturity of fixed maturities | 13,259 | 19,352 |
Proceeds from other invested assets | 682 | 1,445 |
Amounts paid in connection with derivatives | (20,007) | (3,735) |
Purchases of fixed maturities | (156,424) | (112,024) |
Purchases of equity securities | (10,810) | (17,989) |
Purchases of other invested assets | 0 | (3,500) |
Net cash provided by (used for) investing activities | 316 | (39,839) |
Cash flows from financing activities: | ||
Net borrowings (repayments) under margin borrowing facility | (1,922) | 5,950 |
Dividends paid to shareholders | (3,555) | (3,595) |
Purchases of A ordinary shares | (143) | (949) |
Net cash provided by (used for) financing activities | (5,620) | 1,406 |
Net change in cash and cash equivalents | 15,480 | (61,623) |
Cash and cash equivalents at beginning of period | 44,271 | 99,497 |
Cash and cash equivalents at end of period | $ 59,751 | $ 37,874 |
Principles of Consolidation and
Principles of Consolidation and Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principles of Consolidation and Basis of Presentation | 1. Global Indemnity Limited (“Global Indemnity” or “the Company”) was incorporated on February 9, 2016 and is domiciled in the Cayman Islands. On November 7, 2016, Global Indemnity replaced Global Indemnity plc as the ultimate parent company as a result of a redomestication transaction. The Company’s A ordinary shares are publicly traded on the NASDAQ Global Select Market under the ticker symbol GBLI. The Company manages its business through four business segments: Commercial Specialty, Specialty Property, Farm, Ranch, & Stable, and Reinsurance Operations. The Company’s Commercial Specialty segment offers specialty property and casualty insurance products in the excess and surplus lines marketplace. The Company manages Commercial Specialty by differentiating them into four product classifications: 1) 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; 2) 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; 3) 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 4) Vacant Express, which primarily insures dwellings which are currently vacant, undergoing renovation, or are under construction and is marketed through aggregators, brokers, and retail agents. These product classifications comprise the Company’s Commercial Specialty business segment and are not considered individual business segments because each product has similar economic characteristics, distribution, and coverage. The Company’s Specialty Property segment offers specialty personal lines property and casualty insurance products through general and specialty agents with specific binding authority on an admitted basis. The Company’s Farm, Ranch, & Stable segment provides specialized property and casualty coverage including Commercial Farm Auto and Excess/Umbrella Coverage for the agriculture industry as well as specialized insurance products for the equine mortality and equine major medical industry on an admitted basis. These insurance products are sold through wholesalers and retail agents, with a selected number having specific binding authority. 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 Commercial Specialty, Specialty Property, and Farm, Ranch, & Stable segments comprise the Company’s U.S. Insurance Operations (“Insurance Operations”). The Company’s Reinsurance Operations consist solely of the operations of its Bermuda-based wholly-owned subsidiary, Global Indemnity Reinsurance Company, Ltd. (“Global Indemnity Reinsurance”). Global Indemnity Reinsurance is a treaty reinsurer of specialty property and casualty insurance and reinsurance companies. The Company’s Reinsurance Operations segment provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters ended March 31, 2020 and 2019 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2019 Annual Report on Form 10-K. The consolidated financial statements include the accounts of Global Indemnity and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 2. Investments The Company implemented new accounting guidance on January 1, 2020 related to the measurement of credit losses on financial instruments. For financial assets held at amortized cost basis, the new guidance requires a forward-looking methodology for in-scope financial assets that reflects expected credit losses and requires consideration of a broader range of information for credit loss estimates, including historical experience, current economic conditions and supportable forecasts that affect the collectability of the financial asset. For available for sale debt securities, credit losses are still measured similar to the old guidance; however, the new guidance requires that credit losses be presented as an allowance rather than as a write-down of the amortized cost basis of the impaired security and allows for the reversal of credit losses in the current period net income. Any impairments related to factors other than credit losses continue to be recorded through other comprehensive income, net of taxes. The Company elects the practical expedient to exclude accrued interest from both the fair value and the amortized cost basis of the available for sale debt securities for the purposes of identifying and measuring an impairment and to not measure an allowance for credit losses for accrued investment receivables. Accrued interest receivable is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default of payment. The Company made an accounting policy election to present the accrued interest receivable balance with other assets on the Company’s consolidated statements of financial position. Accrued interest receivable was $6.6 million and $7.0 million as of March 31, 2020 and December 31, 2019, respectively. The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of March 31, 2020 and December 31, 2019: (Dollars in thousands) Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of March 31, 2020 Fixed maturities: U.S. treasury and agency obligations $ 174,475 $ — $ 15,739 $ (25 ) $ 190,189 Obligations of states and political subdivisions 63,878 — 1,667 (218 ) 65,327 Mortgage-backed securities 377,274 — 14,551 (3,179 ) 388,646 Asset-backed securities 155,937 — 375 (9,215 ) 147,097 Commercial mortgage-backed securities 164,211 — 6,490 (3,739 ) 166,962 Corporate bonds 221,326 — 5,613 (7,965 ) 218,974 Foreign corporate bonds 95,830 — 1,075 (2,394 ) 94,511 Total fixed maturities $ 1,252,931 $ — $ 45,510 $ (26,735 ) $ 1,271,706 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of December 31, 2019 Fixed maturities: U.S. treasury and agency obligations $ 153,906 $ 3,580 $ (797 ) $ 156,689 Obligations of states and political subdivisions 63,256 853 (271 ) 63,838 Mortgage-backed securities 325,448 3,177 (251 ) 328,374 Asset-backed securities 168,020 937 (420 ) 168,537 Commercial mortgage-backed securities 183,944 4,369 (209 ) 188,104 Corporate bonds 239,860 8,478 (79 ) 248,259 Foreign corporate bonds 97,134 2,247 (23 ) 99,358 Total fixed maturities $ 1,231,568 $ 23,641 $ (2,050 ) $ 1,253,159 As of March 31, 2020 and December 31, 2019, the Company’s investments in equity securities consist of the following: (Dollars in thousands) March 31, 2020 December 31, 2019 Common stock $ 102,349 $ 135,329 Preferred stock 10,354 11,656 Mutual funds that invest in fixed maturities 38,685 54,648 Mutual funds that invest in common stock 22,998 61,471 Total $ 174,386 $ 263,104 As of March 31, 2020 and December 31, 2019, the Company held a Fannie Mae mortgage pool totaling 4.7% and 4.2% of shareholders’ equity, respectively. Excluding the Fannie Mae pool, U.S. treasuries, agency bonds, mutual funds, and limited partnerships, the Company did not hold any debt or equity investments in a single issuer in excess of 3% of shareholders' equity at March 31, 2020 and December 31, 2019. The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at March 31, 2020, 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 Fair Value Due in one year or less $ 31,859 $ 32,006 Due in one year through five years 245,462 250,110 Due in five years through ten years 190,598 189,500 Due in ten years through fifteen years 27,834 29,712 Due after fifteen years 59,756 67,673 Mortgage-backed securities 377,274 388,646 Asset-backed securities 155,937 147,097 Commercial mortgage-backed securities 164,211 166,962 Total $ 1,252,931 $ 1,271,706 The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of March 31, 2020. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 4 of the notes to the consolidated financial statements in Item 1 of Part I of this report: Less than 12 months 12 months or longer (1) Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasury and agency obligations $ 7,498 $ (25 ) $ — $ — $ 7,498 $ (25 ) Obligations of states and political subdivisions 6,654 (218 ) — — 6,654 (218 ) Mortgage-backed securities 33,010 (3,178 ) 60 (1 ) 33,070 (3,179 ) Asset-backed securities 107,158 (7,030 ) 16,820 (2,185 ) 123,978 (9,215 ) Commercial mortgage-backed securities 41,561 (3,739 ) 34 — 41,595 (3,739 ) Corporate bonds 75,676 (7,965 ) — — 75,676 (7,965 ) Foreign corporate bonds 47,548 (2,394 ) — — 47,548 (2,394 ) Total fixed maturities $ 319,105 $ (24,549 ) $ 16,914 $ (2,186 ) $ 336,019 $ (26,735 ) (1) Fixed maturities in a gross unrealized loss position are 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 following table contains an analysis of the Company’s fixed income securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2019. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 4 of the notes to the consolidated financial statements in Item 1 of Part I of this report: Less than 12 months 12 months or longer (1) Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasury and agency obligations $ 35,633 $ (797 ) $ — $ — $ 35,633 $ (797 ) Obligations of states and political subdivisions 27,180 (271 ) — — 27,180 (271 ) Mortgage-backed securities 93,579 (244 ) 902 (7 ) 94,481 (251 ) Asset-backed securities 43,402 (167 ) 16,152 (253 ) 59,554 (420 ) Commercial mortgage-backed securities 25,698 (196 ) 1,945 (13 ) 27,643 (209 ) Corporate bonds 19,407 (79 ) — — 19,407 (79 ) Foreign corporate bonds 4,822 (20 ) 2,035 (3 ) 6,857 (23 ) Total fixed maturities $ 249,721 $ (1,774 ) $ 21,034 $ (276 ) $ 270,755 $ (2,050 ) (1) Fixed maturities in a gross unrealized loss position are 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 outbreak of the coronavirus pandemic in the first quarter of 2020 and uncertainty around the extent of its economic impact caused severe declines in financial markets which are reflected in the fair values of our investments. The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each available for sale debt security in an unrealized loss position to assess whether the decline in fair value below amortized cost basis has resulted from a credit loss or other factors. In assessing whether a credit loss exists, the Company compares the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis of the security, a credit loss exists and an allowance for credit losses is recorded. Subsequent changes in the allowances are recorded in the period of change as either credit loss expense or reversal of credit loss expense. Any impairments related to factors other than credit losses are recorded through other comprehensive income, net of taxes. For fixed maturities, the factors considered in reaching the conclusion that a credit loss exists include, among others, whether: (1) the extent to which the fair value is less than the amortized cost basis; (2) the issuer is in financial distress; (3) the investment is secured; (4) a significant credit rating action occurred; (5) scheduled interest payments were delayed or missed; (6) changes in laws or regulations have affected an issuer or industry; (7) the investment has an unrealized loss and was identified by the Company’s investment manager as an investment to be sold before recovery or maturity; (8) the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized; and (9) changes in US Treasury rates and/or credit spreads since original purchase to identify whether the unrealized loss is simply due to interest rate movement. According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met, any allowance for credit losses is written off and the amortized cost basis is written down to the fair value of the fixed maturity security with any incremental impairment reported in earnings. That new amortized cost basis shall not be adjusted for subsequent recoveries in fair value. The 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 – As of March 31, 2020, gross unrealized losses related to U.S. treasury and agency obligations were $0.025 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, macroeconomic and market analysis is conducted in evaluating these securities. Consideration is given to the interest rate environment, duration and yield curve management of the portfolio, sector allocation and security selection. Based on the analysis performed, the Company did not recognize a credit loss on U.S. treasury and agency obligations during the period. Obligations of states and political subdivisions – As of March 31, 2020, gross unrealized losses related to obligations of states and political subdivisions were $0.218 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, elements that may influence the performance of the municipal bond market are considered in evaluating these securities such as investor expectations, supply and demand patterns, and current versus historical yield and spread relationships. The analysis relies on the output of fixed income credit analysts, as well as dedicated municipal bond analysts who perform extensive in-house fundamental analysis on each issuer, regardless of their rating by the major agencies. Based on the analysis performed, the Company did not recognize a credit loss on obligations of states and political subdivisions during the period. Mortgage-backed securities (“MBS”) – As of March 31, 2020, gross unrealized losses related to mortgage-backed securities were $3.179 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, mortgage-backed securities are modeled to project principal losses under downside, base, and upside scenarios for the economy and home prices. The primary assumption that drives the security and loan level modeling is the Home Price Index (“HPI”) projection. These forecasts incorporate not just national macro-economic trends, but also regional impacts to arrive at the most granular and accurate projections. These assumptions are incorporated into the model as a basis to generate delinquency probabilities, default curves, loss severity curves, and voluntary prepayment curves at the loan level within each deal. The model utilizes HPI-adjusted current LTV, payment history, loan terms, loan modification history, and borrower characteristics as inputs to generate expected cash flows and principal loss for each bond under various scenarios. Based on the analysis performed, the Company did not recognize a credit loss on mortgage-backed securities during the period. Asset backed securities (“ABS”) - As of March 31, 2020, gross unrealized losses related to asset backed securities were $9.215 million. The weighted average credit enhancement for the Company’s asset backed portfolio is 32.3. This represents the percentage of pool losses that can occur before an asset backed security will incur its first dollar of principal losses. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, every ABS transaction is analyzed on a stand-alone basis. This analysis involves a thorough review of the collateral, prepayment, and structural risk in each transaction. Additionally, the analysis includes an in-depth credit analysis of the originator and servicer of the collateral. The analysis projects an expected loss for a deal given a set of assumptions specific to the asset type. These assumptions are used to calculate at what level of losses the deal will incur its first dollar of principal loss. The major assumptions used to calculate this ratio are loss severities, recovery lags, and no advances on principal and interest. Based on the analysis performed, the Company did not recognize a credit loss on asset backed securities during the period. Commercial mortgage-backed securities (“CMBS”) - As of March 31, 2020, gross unrealized losses related to the CMBS portfolio were $3.739 million. The weighted average credit enhancement for the Company’s CMBS portfolio is 29.8. This represents the percentage of pool losses that can occur before a mortgage-backed security will incur its first dollar of principal loss. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, a loan level analysis is utilized where every underlying CMBS loan is re-underwritten based on a set of assumptions reflecting expectations for the future path of the economy. Each loan is analyzed over time using a series of tests to determine if a credit event will occur during the life of the loan. Inherent in this process are several economic scenarios and their corresponding rent/vacancy and capital market states. The five primary credit events that frame the analysis include loan modifications, term default, balloon default, extension, and ability to pay off at balloon. The resulting output is the expected loss adjusted cash flows for each bond under the base case and distressed scenarios. Based on the analysis performed, the Company did not recognize a credit loss on commercial mortgage-backed securities during the period. Corporate bonds - As of March 31, 2020, gross unrealized losses related to corporate bonds were $7.965 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, analysis for this asset class includes maintaining detailed financial models that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. Based on the analysis performed, the Company did not recognize a credit loss on corporate bonds during the period. Foreign bonds – As of March 31, 2020, gross unrealized losses related to foreign bonds were $2.394 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, detailed financial models are maintained that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. Based on the analysis performed, the Company did not recognize a credit loss on foreign bonds during the period. The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the quarter ended March 31, 2019: Quarter Ended March 31, (Dollars in thousands) 2019 Fixed maturities: OTTI losses, gross $ (1,897 ) Portion of loss recognized in other comprehensive income (pre-tax) — Net impairment losses on fixed maturities recognized in earnings $ (1,897 ) The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company for the quarter ended March 31, 2019 for which a portion of the OTTI loss was recognized in other comprehensive income. Quarter Ended March 31, (Dollars in thousands) 2019 Balance at beginning of period $ 13 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 cashflows to be collected — Reductions for securities sold during the period — Balance at end of period $ 13 Accumulated Other Comprehensive Income, Net of Tax Accumulated other comprehensive income, net of tax, as of March 31, 2020 and December 31, 2019 was as follows: (Dollars in thousands) March 31, 2020 December 31, 2019 Net unrealized gains (losses) from: Fixed maturities $ 18,775 $ 21,591 Foreign currency fluctuations (2,335 ) (1,032 ) Deferred taxes (3,880 ) (2,950 ) Accumulated other comprehensive income, net of tax $ 12,560 $ 17,609 The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the quarters ended March 31, 2020 and 2019: Quarter Ended March 31, 2020 (Dollars In Thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ 18,641 $ (1,032 ) $ 17,609 Other comprehensive income before reclassification, before tax (884 ) (1,303 ) (2,187 ) Amounts reclassified from accumulated other comprehensive (income), before tax (1,932 ) — (1,932 ) Other comprehensive income, before tax (2,816 ) (1,303 ) (4,119 ) Income tax (expense) (930 ) — (930 ) Ending balance, net of tax $ 14,895 $ (2,335 ) $ 12,560 Quarter Ended March 31, 2019 (Dollars In Thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ (19,897 ) $ (1,334 ) $ (21,231 ) Other comprehensive income before reclassification, before tax 23,907 194 24,101 Amounts reclassified from accumulated other comprehensive income, before tax 2,195 — 2,195 Other comprehensive income, before tax 26,102 194 26,296 Income tax expense (3,396 ) — (3,396 ) Ending balance, net of tax $ 2,809 $ (1,140 ) $ 1,669 The reclassifications out of accumulated other comprehensive income for the quarters ended March 31, 2020 and 2019 were as follows: (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive Income Quarters Ended March 31, Details about Accumulated Other Comprehensive Income Components Affected Line Item in the Consolidated Statements of Operations 2020 2019 Unrealized gains and losses on available for sale securities Other net realized investment (gains) losses $ (1,932 ) $ 298 Other than temporary impairment losses on investments — 1,897 Total before tax (1,932 ) 2,195 Income tax expense (benefit) 218 (273 ) Unrealized gains and losses on available for sale securities, net of tax (1,714 ) 1,922 Foreign currency items Other net realized investment (gains) losses — — Income tax expense — — Foreign currency items, net of tax — — Total reclassifications Total reclassifications, net of tax $ (1,714 ) $ 1,922 Net Realized Investment Gains (Losses) The components of net realized investment gains (losses) for the quarters ended March 31, 2020 and 2019 were as follows: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Fixed maturities: Gross realized gains $ 2,243 $ 26 Gross realized losses (311 ) (2,221 ) Net realized gains (losses) 1,932 (2,195 ) Equity securities: Gross realized gains 1,822 16,685 Gross realized losses (51,804 ) (1,533 ) Net realized gains (losses) (49,982 ) 15,152 Derivatives: Gross realized gains 13,623 — Gross realized losses (33,735 ) (2,567 ) Net realized gains (losses) (1) (20,112 ) (2,567 ) Total net realized investment gains (losses) $ (68,162 ) $ 10,390 (1) Includes periodic net interest settlements related to the derivatives of $0.6 million and $0.2 million for the quarters ended March 31, 2020 and 2019, respectively. Net realized investment losses for the quarter ended March 31, 2020 were primarily due to the impact of changes in fair value on equity securities and derivatives due to the recent disruption in the global financial markets as a result of COVID-19. The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of March 31, 2020 and 2019: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Net gains and (losses) recognized during the period on equity securities $ (49,982 ) $ 15,152 Less: Net gains (losses) recognized during the period on equity securities sold during the period (4,221 ) 2,034 Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date $ (45,761 ) $ 13,118 The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the quarters ended March 31, 2020 and 2019 were as follows: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Fixed maturities $ 124,070 $ 61,258 Equity securities 49,546 15,354 Net Investment Income The sources of net investment income for the quarters ended March 31, 2020 and 2019 were as follows: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Fixed maturities $ 9,041 $ 9,968 Equity securities 1,364 1,137 Cash and cash equivalents 180 401 Other invested assets 533 (3,704 ) Total investment income 11,118 7,802 Investment expense (989 ) (583 ) Net investment income $ 10,129 $ 7,219 The Company’s total investment return on a pre-tax basis for the quarters ended March 31, 2020 and 2019 were as follows: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Net investment income $ 10,129 $ 7,219 Net realized investment gains (losses) (68,162 ) 10,390 Change in unrealized holding gains and losses (4,119 ) 26,296 Net realized and unrealized investment returns (72,281 ) 36,686 Total investment return $ (62,152 ) $ 43,905 Total investment return % (1) (3.9 %) 2.9 % Average investment portfolio (2) $ 1,578,765 $ 1,514,292 (1) Not annualized. (2) Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period. As of March 31, 2020 and December 31, 2019, the Company did not own any fixed maturity securities that were non-income producing for the preceding twelve months. Insurance Enhanced Asset-Backed and Credit Securities As of March 31, 2020, the Company held insurance enhanced bonds with a market value of approximately $37.5 million The insurance enhanced bonds are comprised of $16.4 million of municipal bonds, $9.9 million of commercial mortgage-backed securities, and $11.2 million of collateralized mortgage obligations. The financial guarantors of the Company’s $37.5 million of insurance enhanced commercial-mortgage-backed, municipal securities, and collateralized mortgage obligations include Municipal Bond Insurance Association ($3.9 million), Assured Guaranty Corporation ($10.3 million), Federal Home Loan Mortgage Corporation ($21.1 million), Ambac Financial Group ($2.2 million), and Federal Deposit Insurance Corporation (less than $0.1 million). The Company had no direct investments in the entities that have provided financial guarantees or other credit support to any security held by the Company at March 31, 2020. 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, or were held in trust pursuant to intercompany reinsurance agreements. The fair values were as follows as of March 31, 2020 and December 31, 2019: Estimated Fair Value (Dollars in thousands) March 31, 2020 December 31, 2019 On deposit with governmental authorities $ 27,278 $ 26,431 Intercompany trusts held for the benefit of U.S. policyholders 177,012 179,116 Held in trust pursuant to third party requirements 126,451 133,122 Letter of credit held for third party requirements 1,458 1,458 Securities held as collateral 107,258 91,229 Total $ 439,457 $ 431,356 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 carrying value of one of the Company’s VIE’s, which invests in distressed securities and assets, was $12.5 million and $13.5 million as of March 31, 2020 and December 31, 2019, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $26.7 million and $27.7 million at March 31, 2020 and December 31, 2019, respectively. The carrying value of a second VIE that also invests in distressed securities and assets was $24.3 million and $24.0 million at March 31, 2020 and December 31, 2019, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $41.3 million and $41.0 million at March 31, 2020 and December 31, 2019, respectively. The carrying value of a third VIE that invests in REIT qualifying assets was $10.5 million and $9.8 million as of March 31, 2020 and December 31, 2019, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $11.0 million and $10.3 million at March 31, 2020 and December 31, 2019, respectively. The Company’s investment in VIEs is included in other invested assets on the consolidated balance sheet with changes in carrying value recorded in the consolidated statements of operations. The limited partnerships typically report results one to three months following the end of the reporting period. As a result, the impact of the recent disruption in markets due to COVID-19 is not reflected in the 1 st nd |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 3. Derivative Instruments Derivatives are used by the Company to reduce risks from changes in interest rates and limit exposure to severe equity market changes. The Company has interest rate swaps with terms to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. In 2019, the Company began to utilize exchange-traded futures contracts, which give the holder the right and obligation to participate in market movements at a future date, to allow the Company to react faster to market conditions. The Company posts collateral and settles variation margin in cash on a daily basis equal to the amount of the futures contracts’ change in value scaled by a multiplier. The Company accounts for the interest rate swaps and futures as non-hedge instruments and recognizes the fair value of the interest rate swaps in other assets or other liabilities on the consolidated balance sheets with the changes in fair value recognized as net realized investment gains or losses in the consolidated statements of operations. The Company is ultimately responsible for the valuation of the interest rate swaps. To aid in determining the estimated fair value of the interest rate swaps, the Company relies on the forward interest rate curve and information obtained from a third party financial institution. The following table summarizes information on the location and the gross amount of the derivatives on the consolidated balance sheets as of March 31, 2020 and December 31, 2019: (Dollars in thousands) March 31, 2020 December 31, 2019 Derivatives Not Designated as Hedging Instruments under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value Interest rate swap agreements Other assets/liabilities $ 200,000 $ (19,059 ) $ 200,000 $ (10,275 ) Futures contracts on bonds (1) Other assets/liabilities 537 — 16,894 — Futures contracts on equities (1) Other assets/liabilities 89,179 — 57,816 — Total $ 289,716 $ (19,059 ) $ 274,710 $ (10,275 ) (1) Futures are settled daily such that their fair value is not reflected in the consolidated statements of financial position 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 quarters ended March 31, 2020 and 2019: Quarters Ended March 31, (Dollars in thousands) Consolidated Statements of Operations Line 2020 2019 Interest rate swap agreements Net realized investment gains (losses) $ (9,423 ) $ (2,567 ) Futures contracts on bonds Net realized investment gains (losses) (2,399 ) — Futures contracts on equities Net realized investment gains (losses) (8,290 ) — Total $ (20,112 ) $ (2,567 ) As of March 31, 2020 and December 31, 2019, the Company is due $3.7 million and $3.0 million, respectively, for funds it needed to post to execute the swap transaction and $19.0 million and $12.5 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. As of March 31, 2020 and December 31, 2019, the Company posted initial margin of $10.2 million and $3.0 million, respectively, in securities for trading futures contracts and has a mark-to-market receivable of $1.9 million and $0.3 million, respectively, in connection with the futures contracts. Variation margin is included in other assets on the consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The accounting standards related to fair value measurements define fair value, establish a framework for measuring fair value, outline a fair value hierarchy based on inputs used to measure fair value, and enhance disclosure requirements for fair value measurements. These standards do not change existing guidance as to whether or not an instrument is carried at fair value. The Company has determined that its fair value measurements are in accordance with the requirements of these accounting standards. The Company’s invested assets and derivative instruments are carried at their fair value and are categorized based upon a fair value hierarchy: • Level 1 – inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date. • Level 2 – inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly. • Level 3 – inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset. The following table presents information about the Company’s invested assets and derivative instruments measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value Measurements As of March 31, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 190,189 $ — $ — $ 190,189 Obligations of states and political subdivisions — 65,327 — 65,327 Mortgage-backed securities — 388,646 — 388,646 Commercial mortgage-backed securities — 166,962 — 166,962 Asset-backed securities — 147,097 — 147,097 Corporate bonds — 218,974 — 218,974 Foreign corporate bonds — 94,511 — 94,511 Total fixed maturities 190,189 1,081,517 — 1,271,706 Equity securities 164,032 10,354 — 174,386 Total assets measured at fair value $ 354,221 $ 1,091,871 $ — $ 1,446,092 Liabilities: Derivative instruments $ — $ 19,059 $ — $ 19,059 Total liabilities measured at fair value $ — $ 19,059 $ — $ 19,059 Fair Value Measurements As of December 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 156,689 $ — $ — $ 156,689 Obligations of states and political subdivisions — 63,838 — 63,838 Mortgage-backed securities — 328,374 — 328,374 Commercial mortgage-backed securities — 188,104 — 188,104 Asset-backed securities — 168,537 — 168,537 Corporate bonds — 248,259 — 248,259 Foreign corporate bonds — 99,358 — 99,358 Total fixed maturities 156,689 1,096,470 — 1,253,159 Equity securities 251,448 11,656 — 263,104 Total assets measured at fair value $ 408,137 $ 1,108,126 $ — $ 1,516,263 Liabilities: Derivative instruments $ — $ 10,275 $ — $ 10,275 Total liabilities measured at fair value $ — $ 10,275 $ — $ 10,275 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 March 31, 2020 and December 31, 2019 was as follows: March 31, 2020 December 31, 2019 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Margin Borrowing Facility $ 71,707 $ 71,707 $ 73,629 $ 73,629 7.75% Subordinated Notes due 2045 (1) 96,895 82,214 96,864 100,264 7.875% Subordinated Notes due 2047 (2) 126,182 109,282 126,147 134,462 Total $ 294,784 $ 263,203 $ 296,640 $ 308,355 (1) As of March 31, 2020 and December 31, 2019, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 is net of unamortized debt issuance cost of $3.1 million. (2) As of March 31, 2020 and December 31, 2019, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $3.8 million and $3.9 million, respectively. 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. Fair Value of Alternative Investments Other invested assets consist of limited liability partnerships whose carrying value approximates fair value. The following table provides the fair value and future funding commitments related to these investments at March 31, 2020 and December 31, 2019. March 31, 2020 December 31, 2019 (Dollars in thousands) Fair Value Future Funding Commitment Fair Value Future Funding Commitment European Non-Performing Loan Fund, LP (1) $ 12,510 $ 14,214 $ 13,530 $ 14,214 Distressed Debt Fund, LP (2) 24,305 17,000 23,966 17,000 Mortgage Debt Fund, LP (3) 10,493 506 9,783 506 Total $ 47,308 $ 31,720 $ 47,279 $ 31,720 ( 1 ) This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. ( 2 ) This limited partnership invests in stressed and distressed securities and structured products. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. ( 3 ) This limited partnership invests in REIT qualifying assets such as mortgage loans, investor property loans, and commercial mortgage loans. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. Limited Partnerships with ownership interest exceeding 3% The Company uses the equity method to account for investments in limited partnerships where its ownership interest exceeds 3%. The equity method of accounting for an investment in a 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 partnerships, which is booked on a one quarter lag, is reflected in the consolidated statements of operations in the amounts of $0.5 million and ($3.7) million for the quarters ended March 31, 2020 and 2019, respectively. The limited partnerships typically report results one to three months following the end of the reporting period. As a result, the impact of the recent disruption in markets due to COVID-19 is not reflected in the 1 st nd Pricing The Company’s pricing vendors provide prices for all investment categories except for investments in limited partnerships. Two primary vendors are utilized to provide prices for equity and fixed maturity securities. The following is a description of the valuation methodologies used by the Company’s pricing vendors for investment securities carried at fair value: • Equity security prices are received from primary and secondary exchanges. • Corporate and agency bonds are evaluated by utilizing a spread to a benchmark curve. Bonds with similar characteristics are grouped into specific sectors. Inputs for both asset classes consist of trade prices, broker quotes, the new issue market, and prices on comparable securities. • Data from commercial vendors is aggregated with market information, then converted into an option adjusted spread “OAS” matrix and prepayment model used for commercial mortgage obligations (“CMO”). CMOs are categorized with mortgage-backed securities in the tables listed above. For asset-backed securities, spread data is derived from trade prices, dealer quotations, and research reports. For both asset classes, evaluations utilize standard inputs plus new issue data, and collateral performance. The evaluated pricing models incorporate cash flows, broker quotes, market trades, historical prepayment speeds, and dealer projected speeds. • For obligations of state and political subdivisions, an attribute-based modeling system is used. The pricing model incorporates trades, market clearing yields, market color, and fundamental credit research. • U.S. treasuries are evaluated by obtaining feeds from a number of live data sources including primary and secondary dealers as well as inter-dealer brokers. • For mortgage-backed securities, various external analytical products are utilized and purchased from commercial vendors. The Company performs certain procedures to validate whether the pricing information received from the pricing vendors is reasonable, to ensure that the fair value determination is consistent with accounting guidance, and to ensure that its assets are properly classified in the fair value hierarchy. The Company’s procedures include, but are not limited to: • Reviewing periodic reports provided by the Investment Manager that provides information regarding rating changes and securities placed on watch. This procedure allows the Company to understand why a particular security’s market value may have changed or may potentially change. • Understanding and periodically evaluating the various pricing methods and procedures used by the Company’s pricing vendors to ensure that investments are properly classified within the fair value hierarchy. • On a quarterly basis, the Company corroborates investment security prices received from its pricing vendors by obtaining pricing from a second pricing vendor for a sample of securities. During the quarters ended March 31, 2020 and 2019, the Company has not adjusted quotes or prices obtained from the pricing vendors. |
Allowance for Credit Losses - P
Allowance for Credit Losses - Premiums Receivable and Reinsurance Receivables | 3 Months Ended |
Mar. 31, 2020 | |
Allowance For Credit Loss [Abstract] | |
Allowance for Credit Losses - Premiums Receivable and Reinsurance Receivables | 5. The Company implemented new accounting guidance on January 1, 2020 related to the measurement of credit losses on financial instruments. Please see footnote 16 for further discussion on this new accounting guidance. For premiums receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, direct placement with collection agencies, solvency of insured or agent, terminated agents, and other relevant factors. For reinsurance receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, disputes, applicable coverage defenses, insolvent reinsurers, financial strength of solvent reinsurers based on A.M Best Ratings and other relevant factors. The following table is an analysis of the allowance for credit losses related to the Company's premiums receivable and reinsurance receivables for the quarter ended March 31, 2020: (Dollars in thousands) Premiums Receivable Reinsurance Receivables Beginning balance $ 2,754 $ 8,992 Current period provision for expected credit losses 162 — Write-offs (170 ) — Recoveries of amounts previously written off — — Ending balance $ 2,746 $ 8,992 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes As of March 31, 2020, the statutory income tax rates of the countries where the Company conducts business are 21% in the United States, 0% in Bermuda, 0% in the Cayman Islands, 19% in the United Kingdom, and 25% on non-trading income, 33% on capital gains and 12.5% on trading income in the Republic of Ireland. The statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense. The Company’s income (loss) before income taxes from its non-U.S. subsidiaries and U.S. subsidiaries for the quarters ended March 31, 2020 and 2019 were as follows: Quarter Ended March 31, 2020 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 17,517 $ 138,207 $ — $ 155,724 Net written premiums $ 17,517 $ 121,595 $ — $ 139,112 Net earned premiums $ 23,855 $ 120,613 $ — $ 144,468 Net investment income 6,376 7,250 (3,497 ) 10,129 Net realized investment losses (3,710 ) (64,452 ) — (68,162 ) Other income (loss) (318 ) 483 — 165 Total revenues 26,203 63,894 (3,497 ) 86,600 Losses and Expenses: Net losses and loss adjustment expenses 12,562 65,085 — 77,647 Acquisition costs and other underwriting expenses 8,549 47,863 — 56,412 Corporate and other operating expenses 1,127 3,096 — 4,223 Interest expense 342 8,020 (3,497 ) 4,865 Income (loss) before income taxes $ 3,623 $ (60,170 ) $ — $ (56,547 ) Quarter Ended March 31, 2019 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 17,549 $ 124,652 $ — $ 142,201 Net written premiums $ 17,542 $ 105,874 $ — $ 123,416 Net earned premiums $ 14,707 $ 107,382 $ — $ 122,089 Net investment income 4,370 3,136 (287 ) 7,219 Net realized investment gains (losses) (892 ) 11,282 — 10,390 Other income 15 473 — 488 Total revenues 18,200 122,273 (287 ) 140,186 Losses and Expenses: Net losses and loss adjustment expenses 4,980 53,341 — 58,321 Acquisition costs and other underwriting expenses 4,995 44,748 — 49,743 Corporate and other operating expenses 1,527 1,678 — 3,205 Interest expense 353 4,957 (287 ) 5,023 Income (loss) before income taxes $ 6,345 $ 17,549 $ — $ 23,894 The following table summarizes the components of income tax expense (benefit): Quarters Ended March 31, (Dollars in thousands) 2020 2019 Current income tax expense: Foreign $ — $ 46 U.S. Federal — — Total current income tax expense $ — 46 Deferred income tax expense (benefit): U.S. Federal (11,969 ) 4,248 Total deferred income tax expense (benefit) (11,969 ) 4,248 Total income tax expense (benefit) $ (11,969 ) $ 4,294 The weighted average expected tax provision has been calculated using income (loss) before income taxes in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate: Quarters Ended March 31, 2020 2019 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average tax rate $ (12,635 ) 22.3 % $ 3,732 15.6 % Adjustments: Tax exempt interest (1 ) — (1 ) — Dividend exclusion (71 ) 0.1 (77 ) (0.3 ) Non-deductible interest 679 (1.1 ) 680 2.8 Other 59 (0.1 ) (40 ) (0.1 ) Effective income tax expense (benefit) $ (11,969 ) 21.2 % $ 4,294 18.0 % The effective income tax benefit rate for the quarter ended March 31, 2020 was 21.2%, compared with an effective income tax expense rate of 18.0% for the quarter ended March 31, 2019. The income tax benefit rate for the quarter ended March 31, 2020 was primarily the result of investment losses incurred by the Company’s U.S. Subsidiaries. The Company has a net operating loss (“NOL”) carryforward of $22.9 million as of March 31, 2020, which begins to expire in 2036 based on when the original NOL was generated. The Company’s NOL carryforward as of December 31, 2019 was $21.9 million. The Company has a Section 163(j) (“163(j)”) carryforward of $9.0 million as of March 31, 2020 and December 31, 2019, which can be carried forward indefinitely. The 163(j) carryforward relates to the limitation on the deduction for business interest expense paid or accrued. The Company has an alternative minimum tax (“AMT”) credit carryforward of $5.5 million and $11.0 million as of March 31, 2020 and December 31, 2019, respectively. The Company received $5.5 million of the AMT credit carryforward during the quarter ended March 31, 2020. Under provisions of the CARES Act, the Company filed a request for a full refund of the remaining $5.5 million in 2020. |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 3 Months Ended |
Mar. 31, 2020 | |
Insurance [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | 7. Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Balance at beginning of period $ 630,181 $ 680,031 Less: Ceded reinsurance receivables 76,273 109,342 Net balance at beginning of period 553,908 570,689 Incurred losses and loss adjustment expenses related to: Current year 78,247 66,251 Prior years (600 ) (7,930 ) Total incurred losses and loss adjustment expenses 77,647 58,321 Paid losses and loss adjustment expenses related to: Current year 22,034 18,340 Prior years 48,806 61,776 Total paid losses and loss adjustment expenses 70,840 80,116 Net balance at end of period 560,715 548,894 Plus: Ceded reinsurance receivables 78,753 97,065 Balance at end of period $ 639,468 $ 645,959 When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates. During the first quarter of 2020, the Company reduced its prior accident year loss reserves by $0.6 million. This reduction consisted of increases and decreases in prior accident year loss reserves in all segments with the primary impact being a $0.6 million decrease related to Reinsurance Operations. The increases and decreases in prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • General Liability: An increase of less than $0.3 million primarily in the 2016 through 2018 accident years reflects higher than anticipated claims severity. These increases were mostly offset by decreases mainly in the 2012 through 2015 and 2019 accident years due to lower than expected claims severity. • Workers Compensation: A $0.2 million reduction primarily in loss adjustment expense reserves in the 2012 accident year and accident years prior to 2005. • Property: A decrease of less than $0.1 million is mainly due to decreases in the 2018 and 2019 accident years primarily recognizing lower than expected claims severity, offset by an increase in the 2016 accident year due to higher than anticipated claims severity. The increases and decreases in prior accident year loss reserves related to Specialty Property primarily consisted of the following: • General Liability: A $0.4 million decrease primarily recognizes lower than expected claims severity in the 2015, 2016 and 2019 accident years. • Property: A $0.4 million increase mainly reflects higher than anticipated claims severity in the 2019 accident year, partially offset by a decrease in the 2018 accident year due to lower than expected claims severity. Farm, Ranch, & Stable had immaterial increases and decreases in prior accident year loss reserves. The $0.6 million reduction of prior accident year loss reserves related to Reinsurance Operations was from the property lines. Decreases were primarily in the 2014 through 2017 accident years based on a review of the experience reported from cedants, partially offset by an increase in the 2018 accident year mainly due to development on Typhoons Jebi and Trami and an increase in attritional losses in the 2019 accident year. During the first quarter of 2019, the Company reduced its prior accident year loss reserves by $7.9 million, which consisted of a $6.7 million decrease related to Commercial Specialty, a $0.9 million increase related to Specialty Property, a $2.1 million decrease related to Farm, Ranch, & Stable, and a $0.1 million decrease related to Reinsurance Operations. The $6.7 million reduction of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • General Liability: A $5.0 million reduction in aggregate with $0.5 million of favorable development in the construction defect reserve category and $4.5 million of favorable development in the other general liability reserve categories. The decreases in the construction defect reserve category recognize lower than anticipated claims frequency and severity that led to reductions in the 2004 through 2009 and 2011 through 2018 accident years, partially offset by an increase in the 2010 accident year. For the other general liability reserve categories, lower than expected claims severity was the primary driver of the favorable development mainly in accident years 2005 through 2014 and the 2016 and 2017 accident years, partially offset by an increase in the 2015 accident year • Commercial Auto Liability: A $0.8 million decrease in total primarily in the 2000 through 2002, 2010, 2012 and 2013 accident years. The decreases recognize lower than anticipated claims severity. • Property: A $1.0 million decrease in aggregate recognizes lower than anticipated claims severity primarily in the 2012 through 2016 and 2018 accident years partially offset by increases in the 2010 and 2017 accident years. The $0.9 million increase of prior accident year loss reserves related to Specialty Property primarily consisted of the following: • Property: A $0.8 million increase recognizes higher than expected claims severity in the 2018 accident year partially offset by decreases in the 2015 through 2017 accident years. The $2.1 million reduction of prior accident year loss reserves related to Farm, Ranch, & Stable primarily consisted of the following: • Property: A • Liability: A The $0.1 million reduction of prior accident year loss reserves related to Reinsurance Operations was from the property lines. Decreases were primarily in the 2013 and 2015 through 2017 accident years, mostly offset by an increase in the 2018 accident year. The accident year change was based on a review of the experience reported from cedants. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | 8 . Effective January 1, 2019, the Company adopted new accounting guidance which increased transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The Company adopted this new accounting guidance using the optional transition method. Under this method, the Company applied the new leases standard at the adoption date and recognized a cumulative effect adjustment of less than $0.1 million to the opening balance sheet of retained earnings. The Company elected the package of practical expedients permitted under the transition guidance within the new standard. In addition, the Company elected the hindsight practical expedient to determine the lease term for existing leases. The Company determines if an arrangement is a lease at inception. Leases with a term of 12 months or less are not recorded on the consolidated balance sheets. For leases with a term of greater than 12 months, lease right-of-use assets (“ROU”) are included in other assets on the consolidated balance sheets and lease liabilities are included in other liabilities on the consolidated balance sheets. Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company’s leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate at the commencement date in determining the present value of future payments. The ROU assets are calculated using the initial lease liability amount, plus any lease payments made at or before the commencement date, minus any lease incentives received, plus any initial direct costs incurred. The Company’s lease agreements may contain both lease and non-lease components which are accounted separately. The Company elected the practical expedient on not separating lease components from non-lease components for its equipment leases. The Company leases office space and equipment under various operating lease arrangements. The Company’s leases have remaining lease terms ranging from 5 months to 10 years. Some building leases have options to extend, terminate, or retract the leased area. The Company did not factor in term extension, terminations, or space retractions into the lease terms used to calculate the right-of-use assets and lease liabilities since it was uncertain as to whether these options would be executed. The Company is also party to certain service contracts. These agreements will continue to be accounted for as service contracts and expensed in the period the services have been provided. As contracts are signed, renewed, or renegotiated, they will be evaluated using the criteria set forth in the new lease guidance to determine if these contracts contain a lease and will be accounted for properly depending upon the terms and language in the contract. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. The components of lease expenses were as follows: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Operating lease expenses $ 748 $ 819 Short-term lease expenses 2 3 Total lease expenses $ 750 $ 822 Supplemental cash flow information related to leases was as follows: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Cash paid for amounts included in the measurement of liabilities: Operating leases $ 395 $ 574 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ — $ 14,897 Supplemental balance sheet information related to leases was as follows: The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheets. (Dollars in thousands) Classification on the consolidated balance sheets March 31, 2020 December 31, 2019 Assets: Operating lease assets Other assets $ 22,071 $ 22,761 Liabilities: Operating lease liabilities Other liabilities $ 23,345 $ 23,539 Weighted-average remaining lease term: Operating leases 9.5 years 10.2 years Weighted-average discount rate: Operating leases (1) 2.7 % 2.7 % (1) Represents the Company’s incremental borrowing rate At March 31, 2020, future minimum lease payments under non-cancelable operating leases were as follows: (Dollars in thousands) 2020 (1) $ 1,579 2021 2,779 2022 2,659 2023 2,702 2024 2,746 Thereafter 14,142 Total future minimum lease payments $ 26,607 Less: amount representing interest 3,262 Present value of minimum lease payments $ 23,345 (1) Excludes the quarter ended March 31, 2020 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | 9. The following table provides information with respect to the A ordinary shares that were surrendered or repurchased during the quarter ended March 31, 2020: Period (1) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plan or Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs January 1-31, 2020 3,124 (2) $ 29.63 — — February 1-29, 2020 1,600 (2) $ 31.13 — — Total 4,724 $ 30.14 — (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 during the quarter ended March 31, 2019: Period (1) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plan or Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs January 1-31, 2019 7,945 (2) $ 36.23 — — February 1-28, 2019 19,083 (2) $ 34.59 — — Total 27,028 $ 35.07 — (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 during the quarters ended March 31, 2020 or 2019. As of March 31, 2020, the Company’s A ordinary shares were held by approximately 215 shareholders of record. There were four holders of record of the Company’s B ordinary shares, all of whom are affiliated investment funds of Fox Paine & Company, LLC or an affiliate of an investment fund, as of March 31, 2020. Please see Note 12 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2019 Annual Report on Form 10-K for more information on the Company’s repurchase program. Dividends Dividend payments of $0.25 per ordinary share were declared during the quarter ended March 31, 2020 as follows: Approval Date Record Date Payment Date Total Dividends Declared (Dollars in thousands) February 9, 2020 March 24, 2020 March 31, 2020 $ 3,539 Various (1) Various Various 102 Total $ 3,641 (1) Represents dividends declared on unvested shares, net of forfeitures. Dividend payments of $0.25 per ordinary share were declared during the quarter ended March 31, 2019 as follows: Approval Date Record Date Payment Date Total Dividends Declared (Dollars in thousands) February 10, 2019 March 22, 2019 March 29, 2019 $ 3,521 Various (1) Various Various 30 Total $ 3,551 (1) Represents dividends declared on unvested shares, net of forfeitures. As of March 31, 2020 and December 31, 2019, accrued dividends on unvested shares, which were included in other liabilities on the consolidated balance sheets, were $0.4 million and $0.1 million, respectively. Please see Note 12 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2019 Annual Report on Form 10-K for more information on the Company’s dividend program. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10 . Related Party Transactions Fox Paine Entities As of March 31, 2020, U.N. Co-Investment Fund III (Cayman), L.P. and Fox Paine Capital Fund II International, L.P. (collectively, the “Fox Paine Funds”), which are investment funds managed by Fox Paine & Company, LLC, beneficially own approximately 80.3% of the Company’s total voting power. As of March 31, 2020, Fox Mercury Investments, L.P. and certain of its affiliates (collectively, the “FM Entities”) separately beneficially own approximately 2.1% of the Company’s total voting power. The Fox Paine Funds have 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 the Fox Paine Funds, FM Entities and Fox Paine & Company, LLC (collectively, “Fox Paine Entities”) so long as the Fox Paine Entities beneficially own shares representing an aggregate 25% or more of the voting power in the Company. The Fox Paine Funds control the election of all of the Company’s Directors due to its controlling share ownership. The Company’s Chairman is the chief executive and founder of Fox Paine & Company, LLC. The Company relies on Fox Paine & Company, LLC to provide management services and other services related to the operations of the Company. Starting in 2014, the management fee is adjusted annually to reflect the percentage change in the CPI-U. Management fee expense of $0.5 million was incurred during each of the quarters ended March 31, 2020 and 2019. Prepaid management fees, which were included in other assets on the consolidated balance sheets, were $0.9 million and $1.4 million as of March 31, 2020 and December 31, 2019, respectively. In addition, Fox Paine & Company, LLC may also propose and negotiate transaction fees with the Company subject to the provisions of the Company’s related party transaction policies, including approval of the Company’s Audit Committee of the Board of Directors, for those services from time to time. Each of the Company’s transactions with Fox Paine & Company, LLC described below was reviewed and approved by the Company’s Audit Committee, which is composed of independent directors, and the Board of Directors (other than Saul A. Fox, Chairman of the Board of Directors of the Company and Chief Executive of Fox Paine & Company, LLC, who is not a member of the Audit Committee and recused himself from the Board of Directors’ deliberations). Illiquid Investment Fund Divestiture Fee On December 21, 2018, Global Indemnity Group, LLC exited an investment in a private credit fund pursuant to a sale of Global Indemnity Group, LLC’s investment to third parties at par plus accrued interest. Fox Paine & Company, LLC provided services to Global Indemnity Group, LLC in connection with the sale, including conducting due diligence to evaluate the private fund, recommending that Global Indemnity Group, LLC withdraw from the private fund, and conducting extended negotiations with the private fund to secure Global Indemnity Group, LLC’s withdrawal from the private fund on favorable terms. Fox Paine & Company, LLC’s services for Global Indemnity Group, LLC in connection with the sale were performed during the second, third, and fourth quarters of 2018. The total fee for these services was $2.0 million which was paid in May 2019. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Legal Proceedings The Company is, from time to time, involved in various legal proceedings in the ordinary course of business. The Company maintains insurance and reinsurance coverage for such risks in amounts that it considers adequate. However, there can be no assurance that the insurance and reinsurance coverage that the Company maintains is sufficient or will be available in adequate amounts or at a reasonable cost. The Company does not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material adverse effect on its business, results of operations, cash flows, or financial condition. There is a greater potential for disputes with reinsurers who are in runoff. Some of the Company’s reinsurers’ have operations that are in runoff, and therefore, the Company closely monitors those relationships. The Company anticipates that, similar to the rest of the insurance and reinsurance industry, it will continue to be subject to litigation and arbitration proceedings in the ordinary course of business. Commitments In 2014, the Company entered into a $50 million commitment to purchase an alternative investment vehicle which is comprised of European non-performing loans. As of March 31, 2020, the Company has funded $35.8 million of this commitment leaving $14.2 million as unfunded. In 2017, the Company entered into a $50 million commitment to purchase an alternative investment vehicle comprised of stressed and distressed securities and structured products. As of March 31, 2020, the Company has funded $33.0 million of this commitment leaving $17.0 million as unfunded. In 2019, the Company entered into a $10 million commitment to purchase an alternative investment vehicle which is comprised of mortgage loans and other real-estate related investments. As of March 31, 2020, the Company has funded $9.5 million of this commitment leaving $0.5 million as unfunded. Other Commitments The Company is party to a Management Agreement, as amended, with Fox Paine & Company, LLC, whereby in connection with certain management services provided to it by Fox Paine & Company, LLC, the Company agreed to pay an annual management fee to Fox Paine & Company, LLC. See Note 10 above for additional information pertaining to this management agreement. COVID-19 There is risk that legislation could be passed which would require the Company to cover business interruption claims regardless of terms, exclusions including the virus exclusions contained within the Company’s Commercial Specialty and Farm, Ranch & Stable policies, or other conditions included in policies that would otherwise preclude coverage. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Plans | 1 2 . Share-Based Compensation Plans Options No stock options were awarded during the quarters ended March 31, 2020 and 2019. No unvested stock options were forfeited during the quarters ended March 31, 2020 or 2019. Restricted Shares / Restricted Stock Units There were no restricted A ordinary shares granted to key employees during the quarter ended March 31, 2020. During the quarter ended March 31, 2019, the Company granted 36,180 restricted A ordinary shares, with a weighted average grant date value of $35.82 per share, to key employees under the Plan. 9,063 of these shares vested immediately. The remainder will vest as follows: • 16.5% vested on January 1, 2020. 16.5% and 17.0% of the restricted stock will vest on January 1, 2021 and January 1, 2022, respectively. • Subject to Board approval, 50% of restricted stock will vest 100%, no later than March 15, 2022, following a re-measurement of 2018 results as of December 31, 2021. During the quarter ended March 31, 2020, the Company granted 94,281 restricted stock units, with a weighted average grant date value of $29.63 per share, to key employees under the Plan. 3,375 of these restricted stock units will vest evenly over the next three years. One third of these restricted stock units will vest on January 1, 2021, January 1, 2022 and January 1, 2023. The remaining 90,906 restricted stock units will vest as follows: • 16.5%, 16.5%, and 17.0% of the restricted stock units will vest on January 1, 2021, January 1, 2022, and January 1, 2023, respectively. • Subject to Board approval, 50% of restricted stock units will vest 100%, no later than March 15, 2023, following a re-measurement of 2019 results as of December 31, 2022. There were no restricted stock units granted to key employees during the quarter ended March 31, 2019. During the quarters ended March 31, 2020 and 2019, the Company granted 23,127 and 15,842 A ordinary shares, respectively, at a weighted average grant date value of $29.19 and $30.38 per share, respectively, to non-employee directors of the Company under the Plan. All of the shares granted to non-employee directors of the Company in 2020 and 2019 were fully vested but are subject to certain restrictions. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. Earnings per share have been computed using the weighted average number of ordinary shares and ordinary share equivalents outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share: Quarters Ended March 31, (Dollars in thousands, except share and per share data) 2020 2019 Net income (loss) $ (44,578 ) $ 19,600 Basic earnings per share: Weighted average shares outstanding – basic 14,249,551 14,153,918 Net income (loss) per share $ (3.13 ) $ 1.38 Diluted earnings per share: Weighted average shares outstanding – diluted (1) 14,249,551 14,315,091 Net income (loss) per share $ (3.13 ) $ 1.37 (1) For the quarter ended March 31, 2020, weighted average shares outstanding – basic was used to calculate diluted earnings per share due to a net loss for the period. A reconciliation of weighted average shares for basic earnings per share to weighted average shares for diluted earnings per share is as follows: Quarters Ended March 31, 2020 2019 Weighted average shares for basic earnings per share 14,249,551 14,153,918 Non-vested restricted stock — 14,723 Options — 146,450 Weighted average shares for diluted earnings per share 14,249,551 14,315,091 If the Company had not incurred a loss in the quarter ended March 31, 2020, 14,417,506 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 16,298 shares of non-vested restricted stock, 29,261 shares of non-vested restricted stock units, and 122,396 share equivalents for options. The weighted average shares outstanding used to determine dilutive earnings per share does not include 500,000 options for the quarters ended March 31, 2020 and 2019 which were deemed to be anti-dilutive. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 14 . Segment Information The Company manages its business through four business segments. Commercial Specialty offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs. Specialty Property offers specialty personal lines property and casualty insurance products. Farm, Ranch, & Stable offers specialized property and casualty coverage including Commercial Farm Auto and Excess/Umbrella Coverage for the agriculture industry as well as specialized insurance products for the equine mortality and equine major medical industry. Reinsurance Operations provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. The following are tabulations of business segment information for the quarters ended March 31, 2020 and 2019: Quarter Ended March 31, 2020 (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 80,831 $ 35,243 $ 22,133 $ 17,517 $ 155,724 Net written premiums $ 72,483 $ 30,007 $ 19,105 $ 17,517 $ 139,112 Net earned premiums $ 67,714 $ 34,216 $ 18,683 $ 23,855 $ 144,468 Other income (loss) — 427 36 (295 ) 168 Total revenues 67,714 34,643 18,719 23,560 144,636 Losses and Expenses: Net losses and loss adjustment expenses 37,435 17,498 9,610 13,104 77,647 Acquisition costs and other underwriting expenses 25,993 14,232 7,638 8,549 56,412 Income from segments $ 4,286 $ 2,913 $ 1,471 $ 1,907 $ 10,577 Unallocated Items: Net investment income 10,129 Net realized investment loss (68,162 ) Other income (loss) (3 ) Corporate and other operating expenses (4,223 ) Interest expense (4,865 ) Loss before income taxes (56,547 ) Income tax benefit 11,969 Net loss (44,578 ) Segment assets $ 730,202 $ 209,758 $ 135,731 $ 276,640 $ 1,352,331 Corporate assets 676,173 Total assets $ 2,028,504 (1) Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018. (2) External business only, excluding business assumed from affiliates. Quarter Ended March 31, 2019 (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 64,213 $ 39,674 $ 20,765 $ 17,549 $ 142,201 Net written premiums $ 55,170 $ 33,212 $ 17,492 $ 17,542 $ 123,416 Net earned premiums $ 55,641 $ 34,619 $ 17,122 $ 14,707 $ 122,089 Other income — 443 30 15 488 Total revenues 55,641 35,062 17,152 14,722 122,577 Losses and Expenses: Net losses and loss adjustment expenses 21,651 20,503 8,138 8,029 58,321 Acquisition costs and other underwriting expenses 22,812 14,653 7,282 4,996 49,743 Income (loss) from segments $ 11,178 $ (94 ) $ 1,732 $ 1,697 $ 14,513 Unallocated Items: Net investment income 7,219 Net realized investment gain 10,390 Corporate and other operating expenses (3,205 ) Interest expense (5,023 ) Income before income taxes 23,894 Income tax benefit (4,294 ) Net income 19,600 Segment assets $ 684,497 $ 242,519 $ 135,727 $ 313,815 1,376,558 Corporate assets 608,350 Total assets $ 1,984,908 (1) Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018. (2) External business only, excluding business assumed from affiliates. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries | 15 . Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries The following tables present condensed consolidating balance sheets at March 31, 2020 and December 31, 2019, condensed consolidating statements of operations, condensed consolidating statements of comprehensive income, and condensed consolidating statements of cash flows for the quarters ended March 31, 2020 and 2019. Global Indemnity Group, LLC is a 100% owned subsidiary of the Company. See Note 10 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2019 Annual Report on Form 10-K for information on the Company’s debt obligations. Condensed Consolidating Balance Sheets at March 31, 2020 (Dollars in thousands) Global Indemnity Limited (Parent co- obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated ASSETS Total investments $ 32,865 $ 209,656 $ 1,250,879 $ — $ 1,493,400 Cash and cash equivalents 635 10,697 48,419 — 59,751 Investments in subsidiaries 1,175,117 368,560 392,126 (1,935,803 ) — Due from subsidiaries and affiliates 559 (27,056 ) 26,497 — — Notes receivable – affiliate — 80,049 445,498 (525,547 ) — Interest receivable – affiliate — 5,290 17,259 (22,549 ) — Premiums receivable, net — — 115,331 — 115,331 Reinsurance receivables, net — — 83,074 — 83,074 Funds held by ceding insurers — — 47,096 — 47,096 Federal income taxes receivable — 7,064 (1,554 ) — 5,510 Deferred federal income taxes — 43,334 (1,217 ) — 42,117 Deferred acquisition costs — — 69,615 — 69,615 Intangible assets — — 21,359 — 21,359 Goodwill — — 6,521 — 6,521 Prepaid reinsurance premiums — — 15,512 — 15,512 Receivable for securities sold — 48 (48 ) — — Other assets 8,598 22,243 45,300 (6,923 ) 69,218 Total assets $ 1,217,774 $ 719,885 $ 2,581,667 $ (2,490,822 ) $ 2,028,504 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Unpaid losses and loss adjustment expenses $ — $ — $ 639,468 $ — $ 639,468 Unearned premiums — — 308,301 — 308,301 Ceded balances payable — — 23,932 — 23,932 Payable for securities purchased — — 2,585 — 2,585 Contingent commissions — — 5,841 — 5,841 Debt — 301,707 — (6,923 ) 294,784 Notes payable – affiliates 520,498 — 5,049 (525,547 ) — Accrued interest payable – affiliates 20,554 — 1,995 (22,549 ) — Other liabilities 2,086 26,052 50,819 — 78,957 Total liabilities 543,138 327,759 1,037,990 (555,019 ) 1,353,868 Shareholders’ equity Total shareholders’ equity 674,636 392,126 1,543,677 (1,935,803 ) 674,636 Total liabilities and shareholders’ equity $ 1,217,774 $ 719,885 $ 2,581,667 $ (2,490,822 ) $ 2,028,504 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Balance Sheets at December 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated ASSETS Total investments $ 44,468 $ 257,317 $ 1,261,757 $ — $ 1,563,542 Cash and cash equivalents 977 2,663 40,631 — 44,271 Investments in subsidiaries 1,218,491 355,777 434,278 (2,008,546 ) — Due from subsidiaries and affiliates (3,612 ) (3,965 ) 7,577 — — Notes receivable – affiliate — 80,049 445,498 (525,547 ) — Interest receivable – affiliate — 5,014 17,258 (22,272 ) — Premiums receivable, net — — 118,035 — 118,035 Reinsurance receivables, net — — 83,938 — 83,938 Funds held by ceding insurers — — 48,580 — 48,580 Federal income taxes receivable — 14,197 (3,208 ) — 10,989 Deferred federal income taxes — 31,833 (756 ) — 31,077 Deferred acquisition costs — — 70,677 — 70,677 Intangible assets — — 21,491 — 21,491 Goodwill — — 6,521 — 6,521 Prepaid reinsurance premiums — — 16,716 — 16,716 Other assets 9,394 12,622 45,021 (6,989 ) 60,048 Total assets $ 1,269,718 $ 755,507 $ 2,614,014 $ (2,563,354 ) $ 2,075,885 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Unpaid losses and loss adjustment expenses $ — $ — $ 630,181 $ — $ 630,181 Unearned premiums — — 314,861 — 314,861 Ceded balances payable — — 20,404 — 20,404 Payable for securities purchased — — 850 — 850 Contingent commissions — — 11,928 — 11,928 Debt — 303,629 — (6,989 ) 296,640 Notes payable – affiliates 520,498 — 5,049 (525,547 ) — Accrued interest payable – affiliates 20,343 — 1,929 (22,272 ) — Other liabilities 2,068 17,600 54,544 — 74,212 Total liabilities 542,909 321,229 1,039,746 (554,808 ) 1,349,076 Shareholders’ equity Total shareholders’ equity 726,809 434,278 1,574,268 (2,008,546 ) 726,809 Total liabilities and shareholders’ equity $ 1,269,718 $ 755,507 $ 2,614,014 $ (2,563,354 ) $ 2,075,885 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Operations for the Quarter Ended March 31, 2020 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Revenues: Net earned premiums $ — $ — $ 144,468 $ — $ 144,468 Net investment income (202 ) 2,071 8,537 (277 ) 10,129 Net realized investment gains (losses) (4,603 ) (64,191 ) 632 — (68,162 ) Other income — 19 146 — 165 Total revenues (4,805 ) (62,101 ) 153,783 (277 ) 86,600 Losses and Expenses: Net losses and loss adjustment expenses — — 77,647 — 77,647 Acquisition costs and other underwriting expenses — — 56,412 — 56,412 Corporate and other operating expenses 1,173 2,954 96 — 4,223 Interest expense 276 4,799 67 (277 ) 4,865 Income (loss) before equity in net income (loss) of subsidiaries and income taxes (6,254 ) (69,854 ) 19,561 — (56,547 ) Equity in net income (loss) of subsidiaries (38,324 ) 10,138 (45,653 ) 73,839 — Loss before income taxes (44,578 ) (59,716 ) (26,092 ) 73,839 (56,547 ) Income tax expense (benefit) — (14,063 ) 2,094 — (11,969 ) Net loss $ (44,578 ) $ (45,653 ) $ (28,186 ) $ 73,839 $ (44,578 ) (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Operations for the Quarter Ended March 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Revenues: Net earned premiums $ — $ — $ 122,089 $ — $ 122,089 Net investment income 642 (2,075 ) 8,939 (287 ) 7,219 Net realized investment gains (losses) (7 ) 12,076 (1,679 ) — 10,390 Other income — 28 460 — 488 Total revenues 635 10,029 129,809 (287 ) 140,186 Losses and Expenses: Net losses and loss adjustment expenses — — 58,321 — 58,321 Acquisition costs and other underwriting expenses — — 49,743 — 49,743 Corporate and other operating expenses 1,329 1,566 310 — 3,205 Interest expense 274 4,957 79 (287 ) 5,023 Income (loss) before equity in net income of subsidiaries and income taxes (968 ) 3,506 21,356 — 23,894 Equity in net income of subsidiaries 20,568 7,893 10,059 (38,520 ) — Income before income taxes 19,600 11,399 31,415 (38,520 ) 23,894 Income tax expense — 1,340 2,954 — 4,294 Net Income $ 19,600 $ 10,059 $ 28,461 $ (38,520 ) $ 19,600 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Comprehensive Income for the Quarter Ended March 31, 2020 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Net income (loss) $ (44,578 ) $ (45,653 ) $ (28,186 ) $ 73,839 $ (44,578 ) Other comprehensive income, net of tax: Unrealized holding gains (losses) — 856 (2,888 ) — (2,032 ) Equity in other comprehensive income of unconsolidated subsidiaries (5,049 ) 2,645 3,501 (1,097 ) — Portion of other-than-temporary impairment losses recognized in other comprehensive income — — — — — Reclassification adjustment for gains included in net income — — (1,714 ) — (1,714 ) Unrealized foreign currency translation gains — — (1,303 ) — (1,303 ) Other comprehensive income, net of tax (5,049 ) 3,501 (2,404 ) (1,097 ) (5,049 ) Comprehensive income (loss), net of tax $ (49,627 ) $ (42,152 ) $ (30,590 ) $ 72,742 $ (49,627 ) (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Comprehensive Income for the Quarter Ended March 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Net income $ 19,600 $ 10,059 $ 28,461 $ (38,520 ) $ 19,600 Other comprehensive income, net of tax: Unrealized holding gains 659 2,047 18,079 — 20,785 Equity in other comprehensive income of unconsolidated subsidiaries 22,234 10,325 12,774 (45,333 ) — Portion of other-than-temporary impairment losses recognized in other comprehensive income — — (1 ) — (1 ) Reclassification adjustment for losses included in net income 7 402 1,513 — 1,922 Unrealized foreign currency translation gains — — 194 — 194 Other comprehensive income, net of tax 22,900 12,774 32,559 (45,333 ) 22,900 Comprehensive income, net of tax $ 42,500 $ 22,833 $ 61,020 $ (83,853 ) $ 42,500 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Cash Flows for the Quarter Ended March 31, 2020 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Global Indemnity Limited Consolidated Cash flows from operating activities: Net cash provided by (used for) operating activities $ (3,644 ) $ 24,655 $ (227 ) $ 20,784 Cash flows from investing activities: Proceeds from sale of fixed maturities — 3,007 121,063 124,070 Proceeds from sale of equity securities 7,566 41,980 — 49,546 Proceeds from maturity of fixed maturities — — 13,259 13,259 Proceeds from other invested assets 1,020 (338 ) — 682 Amounts paid in connection with derivatives — (20,007 ) — (20,007 ) Purchases of fixed maturities — (30,117 ) (126,307 ) (156,424 ) Purchases of equity securities (1,586 ) (9,224 ) — (10,810 ) Purchases of other invested assets — — — — Net cash provided by (used for) investing activities 7,000 (14,699 ) 8,015 316 Cash flows from financing activities: Net borrowings under margin borrowing facility — (1,922 ) — (1,922 ) Dividends paid to shareholders (3,555 ) — — (3,555 ) Purchase of A ordinary shares (143 ) — — (143 ) Net cash used for financing activities (3,698 ) (1,922 ) — (5,620 ) Net change in cash and cash equivalents (342 ) 8,034 7,788 15,480 Cash and cash equivalents at beginning of period 977 2,663 40,631 44,271 Cash and cash equivalents at end of period $ 635 $ 10,697 $ 48,419 $ 59,751 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations Condensed Consolidating Statements of Cash Flows for the Quarter Ended March 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Global Indemnity Limited Consolidated Cash flows from operating activities: Net cash provided by (used for) operating activities $ 2,225 $ (10,514 ) $ (14,901 ) $ (23,190 ) Cash flows from investing activities: Proceeds from sale of fixed maturities 9,567 12,200 39,491 61,258 Proceeds from sale of equity securities — 15,354 — 15,354 Proceeds from maturity of fixed maturities — — 19,352 19,352 Proceeds from other invested assets 1,445 — — 1,445 Amounts paid in connection with derivatives — (3,735 ) — (3,735 ) Purchases of fixed maturities (10,548 ) (23,149 ) (78,327 ) (112,024 ) Purchases of equity securities — (17,989 ) — (17,989 ) Purchases of other invested assets — (3,500 ) — (3,500 ) Net cash provided by (used for) investing activities 464 (20,819 ) (19,484 ) (39,839 ) Cash flows from financing activities: Net borrowings under margin borrowing facility — 5,950 — 5,950 Dividends paid to shareholders (3,595 ) — — (3,595 ) Purchase of A ordinary shares (949 ) — — (949 ) Net cash provided by (used for) financing activities (4,544 ) 5,950 — 1,406 Net change in cash and cash equivalents (1,855 ) (25,383 ) (34,385 ) (61,623 ) Cash and cash equivalents at beginning of period 2,221 26,039 71,237 99,497 Cash and cash equivalents at end of period $ 366 $ 656 $ 36,852 $ 37,874 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 16 . New Accounting Pronouncements Accounting Standards Adopted in 2020 In March, 2020, the FASB issued new accounting guidance that affected a variety of topics in the Codification. The amendments in this update are meant to make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarification. This guidance is effective for all fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. The Company adopted this guidance on January 1, 2020. The adoption of this new accounting guidance did not have a material impact on the Company’s financial condition, results of operations, or cash flows. In August, 2018, the FASB issued new accounting guidance which removed, modified, and added certain disclosures related to Topic 820, Fair Value. The affected disclosures are related to transfers between fair value levels, level 3 assets, and investments in certain entities that calculate net asset value. This guidance is effective for all fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. The Company adopted this guidance on January 1, 2020. The adoption of this new accounting guidance did not have a material impact on the Company’s financial condition, results of operations, or 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. The Company adopted this guidance on January 1, 2020. The adoption of this new accounting guidance did not have a material impact on the Company’s 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. The new guidance requires financial assets measured at amortized cost, which includes but are not limited to premiums receivable and reinsurance receivables, to be presented at the net amount expected to be collected over the life of the asset using an allowance for credit losses. Changes in the allowance are charged to earnings. The measurement of expected credit losses should consider relevant information about past events, including historical experience, current information, as well as reasonable and supportable forecasts that affect the collectability of the financial assets. For available for sale debt securities, credit losses should be measured similar to the old guidance; however, the new guidance requires that credit losses be presented as an allowance rather than as a write-down of the amortized cost basis of the impaired securities and allows for the reversal of credit losses in the current period net income. In addition, the Company made certain accounting policy elections related to accrued interest receivables which are described in Note 2. The Company adopted this new accounting guidance on January 1, 2020 using a modified-retrospective approach. The adoption of this new accounting guidance and the impact on the Company’s financial condition, results of operations, and cash flows is described primarily within Note 2 and 5. Please see Note 22 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2019 Annual Report on Form 10-K for more information on accounting pronouncements issued but not yet adopted. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events COVID-19 On January 30, 2020, the World Health Organization declared the recent coronavirus disease 2019 (“COVID-19”) outbreak a global health emergency and was elevated to “pandemic” status on March 11, 2020. Following these events, numerous jurisdictions issued shelter in place orders requesting or requiring residents to remain at home. The Company can experience increased risk of loss any time unforeseen infectious diseases impact large portions of certain populations. Specifically, the Company’s business could experience losses resulting from COVID-19 related impacts as a result of complete or partial closure of the Company’s or its policyholders’ facilities, labor shortages, disruptions in public and private infrastructure, increased cybersecurity risk as well as unforeseen perils. The Company may experience reductions in premium volume, delays in collection of premiums, and increases in COVID-19 related claims. As a result of a pandemic and other geopolitical factors, the Company could also experience losses in its investment portfolio as a result of volatile markets. Management is taking actions it considers prudent to minimize the impact on the Company’s operations. However, given the ongoing uncertainty surrounding the duration, magnitude and geographic reach of COVID-19, the Company continues to evaluate the impact of COVID-19 on its business and operations. Management Agreement On May 6, 2020, the Company and Fox Paine & Company, LLC entered into the Second Amended and Restated Management Agreement effective as of September 5, 2019 (the “Agreement”) to: (i) eliminate the Company’s obligation to reimburse Fox Paine & Company, LLC for its travel, lodging, meals, and other items relating to attendance at regularly scheduled meetings of the Board of Directors, which have averaged approximately $550,000 per year (since execution of the Agreement in 2013) and (ii) increase Fox Paine & Company, LLC’s base Annual Service Fee by $550,000 per year. |
Principles of Consolidation a_2
Principles of Consolidation and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business Segments | The Company manages its business through four business segments: Commercial Specialty, Specialty Property, Farm, Ranch, & Stable, and Reinsurance Operations. The Company’s Commercial Specialty segment offers specialty property and casualty insurance products in the excess and surplus lines marketplace. The Company manages Commercial Specialty by differentiating them into four product classifications: 1) 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; 2) 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; 3) 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 4) Vacant Express, which primarily insures dwellings which are currently vacant, undergoing renovation, or are under construction and is marketed through aggregators, brokers, and retail agents. These product classifications comprise the Company’s Commercial Specialty business segment and are not considered individual business segments because each product has similar economic characteristics, distribution, and coverage. The Company’s Specialty Property segment offers specialty personal lines property and casualty insurance products through general and specialty agents with specific binding authority on an admitted basis. The Company’s Farm, Ranch, & Stable segment provides specialized property and casualty coverage including Commercial Farm Auto and Excess/Umbrella Coverage for the agriculture industry as well as specialized insurance products for the equine mortality and equine major medical industry on an admitted basis. These insurance products are sold through wholesalers and retail agents, with a selected number having specific binding authority. 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 Commercial Specialty, Specialty Property, and Farm, Ranch, & Stable segments comprise the Company’s U.S. Insurance Operations (“Insurance Operations”). The Company’s Reinsurance Operations consist solely of the operations of its Bermuda-based wholly-owned subsidiary, Global Indemnity Reinsurance Company, Ltd. (“Global Indemnity Reinsurance”). Global Indemnity Reinsurance is a treaty reinsurer of specialty property and casualty insurance and reinsurance companies. The Company’s Reinsurance Operations segment provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Intercompany Balances and Transactions | The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters ended March 31, 2020 and 2019 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2019 Annual Report on Form 10-K. The consolidated financial statements include the accounts of Global Indemnity and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Investments | The outbreak of the coronavirus pandemic in the first quarter of 2020 and uncertainty around the extent of its economic impact caused severe declines in financial markets which are reflected in the fair values of our investments. The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each available for sale debt security in an unrealized loss position to assess whether the decline in fair value below amortized cost basis has resulted from a credit loss or other factors. In assessing whether a credit loss exists, the Company compares the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis of the security, a credit loss exists and an allowance for credit losses is recorded. Subsequent changes in the allowances are recorded in the period of change as either credit loss expense or reversal of credit loss expense. Any impairments related to factors other than credit losses are recorded through other comprehensive income, net of taxes. For fixed maturities, the factors considered in reaching the conclusion that a credit loss exists include, among others, whether: (1) the extent to which the fair value is less than the amortized cost basis; (2) the issuer is in financial distress; (3) the investment is secured; (4) a significant credit rating action occurred; (5) scheduled interest payments were delayed or missed; (6) changes in laws or regulations have affected an issuer or industry; (7) the investment has an unrealized loss and was identified by the Company’s investment manager as an investment to be sold before recovery or maturity; (8) the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized; and (9) changes in US Treasury rates and/or credit spreads since original purchase to identify whether the unrealized loss is simply due to interest rate movement. According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met, any allowance for credit losses is written off and the amortized cost basis is written down to the fair value of the fixed maturity security with any incremental impairment reported in earnings. That new amortized cost basis shall not be adjusted for subsequent recoveries in fair value. |
Derivative Instruments | The Company accounts for the interest rate swaps and futures as non-hedge instruments and recognizes the fair value of the interest rate swaps in other assets or other liabilities on the consolidated balance sheets with the changes in fair value recognized as net realized investment gains or losses in the consolidated statements of operations. The Company is ultimately responsible for the valuation of the interest rate swaps. To aid in determining the estimated fair value of the interest rate swaps, the Company relies on the forward interest rate curve and information obtained from a third party financial institution. |
Fair Value Measurement | The Company’s invested assets and derivative instruments are carried at their fair value and are categorized based upon a fair value hierarchy: • Level 1 – inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date. • Level 2 – inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly. • Level 3 – inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset. The following is a description of the valuation methodologies used by the Company’s pricing vendors for investment securities carried at fair value: • Equity security prices are received from primary and secondary exchanges. • Corporate and agency bonds are evaluated by utilizing a spread to a benchmark curve. Bonds with similar characteristics are grouped into specific sectors. Inputs for both asset classes consist of trade prices, broker quotes, the new issue market, and prices on comparable securities. • Data from commercial vendors is aggregated with market information, then converted into an option adjusted spread “OAS” matrix and prepayment model used for commercial mortgage obligations (“CMO”). CMOs are categorized with mortgage-backed securities in the tables listed above. For asset-backed securities, spread data is derived from trade prices, dealer quotations, and research reports. For both asset classes, evaluations utilize standard inputs plus new issue data, and collateral performance. The evaluated pricing models incorporate cash flows, broker quotes, market trades, historical prepayment speeds, and dealer projected speeds. • For obligations of state and political subdivisions, an attribute-based modeling system is used. The pricing model incorporates trades, market clearing yields, market color, and fundamental credit research. • U.S. treasuries are evaluated by obtaining feeds from a number of live data sources including primary and secondary dealers as well as inter-dealer brokers. • For mortgage-backed securities, various external analytical products are utilized and purchased from commercial vendors. |
Statutory Income Tax Rates | The statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense. |
Loss Reserves and Prior Year Development | When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates. |
Earnings Per Share | Earnings per share have been computed using the weighted average number of ordinary shares and ordinary share equivalents outstanding during the period. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost and Estimated Fair Value of Company's Fixed Maturities Securities | The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of March 31, 2020 and December 31, 2019: (Dollars in thousands) Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of March 31, 2020 Fixed maturities: U.S. treasury and agency obligations $ 174,475 $ — $ 15,739 $ (25 ) $ 190,189 Obligations of states and political subdivisions 63,878 — 1,667 (218 ) 65,327 Mortgage-backed securities 377,274 — 14,551 (3,179 ) 388,646 Asset-backed securities 155,937 — 375 (9,215 ) 147,097 Commercial mortgage-backed securities 164,211 — 6,490 (3,739 ) 166,962 Corporate bonds 221,326 — 5,613 (7,965 ) 218,974 Foreign corporate bonds 95,830 — 1,075 (2,394 ) 94,511 Total fixed maturities $ 1,252,931 $ — $ 45,510 $ (26,735 ) $ 1,271,706 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of December 31, 2019 Fixed maturities: U.S. treasury and agency obligations $ 153,906 $ 3,580 $ (797 ) $ 156,689 Obligations of states and political subdivisions 63,256 853 (271 ) 63,838 Mortgage-backed securities 325,448 3,177 (251 ) 328,374 Asset-backed securities 168,020 937 (420 ) 168,537 Commercial mortgage-backed securities 183,944 4,369 (209 ) 188,104 Corporate bonds 239,860 8,478 (79 ) 248,259 Foreign corporate bonds 97,134 2,247 (23 ) 99,358 Total fixed maturities $ 1,231,568 $ 23,641 $ (2,050 ) $ 1,253,159 |
Schedule Of Investments In Equity Securities | As of March 31, 2020 and December 31, 2019, the Company’s investments in equity securities consist of the following: (Dollars in thousands) March 31, 2020 December 31, 2019 Common stock $ 102,349 $ 135,329 Preferred stock 10,354 11,656 Mutual funds that invest in fixed maturities 38,685 54,648 Mutual funds that invest in common stock 22,998 61,471 Total $ 174,386 $ 263,104 |
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 March 31, 2020, 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 Fair Value Due in one year or less $ 31,859 $ 32,006 Due in one year through five years 245,462 250,110 Due in five years through ten years 190,598 189,500 Due in ten years through fifteen years 27,834 29,712 Due after fifteen years 59,756 67,673 Mortgage-backed securities 377,274 388,646 Asset-backed securities 155,937 147,097 Commercial mortgage-backed securities 164,211 166,962 Total $ 1,252,931 $ 1,271,706 |
Summary of Securities With Gross Unrealized Losses | The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of March 31, 2020. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 4 of the notes to the consolidated financial statements in Item 1 of Part I of this report: Less than 12 months 12 months or longer (1) Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasury and agency obligations $ 7,498 $ (25 ) $ — $ — $ 7,498 $ (25 ) Obligations of states and political subdivisions 6,654 (218 ) — — 6,654 (218 ) Mortgage-backed securities 33,010 (3,178 ) 60 (1 ) 33,070 (3,179 ) Asset-backed securities 107,158 (7,030 ) 16,820 (2,185 ) 123,978 (9,215 ) Commercial mortgage-backed securities 41,561 (3,739 ) 34 — 41,595 (3,739 ) Corporate bonds 75,676 (7,965 ) — — 75,676 (7,965 ) Foreign corporate bonds 47,548 (2,394 ) — — 47,548 (2,394 ) Total fixed maturities $ 319,105 $ (24,549 ) $ 16,914 $ (2,186 ) $ 336,019 $ (26,735 ) (1) Fixed maturities in a gross unrealized loss position are 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 following table contains an analysis of the Company’s fixed income securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2019. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 4 of the notes to the consolidated financial statements in Item 1 of Part I of this report: Less than 12 months 12 months or longer (1) Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasury and agency obligations $ 35,633 $ (797 ) $ — $ — $ 35,633 $ (797 ) Obligations of states and political subdivisions 27,180 (271 ) — — 27,180 (271 ) Mortgage-backed securities 93,579 (244 ) 902 (7 ) 94,481 (251 ) Asset-backed securities 43,402 (167 ) 16,152 (253 ) 59,554 (420 ) Commercial mortgage-backed securities 25,698 (196 ) 1,945 (13 ) 27,643 (209 ) Corporate bonds 19,407 (79 ) — — 19,407 (79 ) Foreign corporate bonds 4,822 (20 ) 2,035 (3 ) 6,857 (23 ) Total fixed maturities $ 249,721 $ (1,774 ) $ 21,034 $ (276 ) $ 270,755 $ (2,050 ) (1) Fixed maturities in a gross unrealized loss position are 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. |
Schedule of Other Than Temporary Impairments on Investments | The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the quarter ended March 31, 2019: Quarter Ended March 31, (Dollars in thousands) 2019 Fixed maturities: OTTI losses, gross $ (1,897 ) Portion of loss recognized in other comprehensive income (pre-tax) — Net impairment losses on fixed maturities recognized in earnings $ (1,897 ) |
Schedule of Credit Losses Recognized in Earnings | The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company for the quarter ended March 31, 2019 for which a portion of the OTTI loss was recognized in other comprehensive income. Quarter Ended March 31, (Dollars in thousands) 2019 Balance at beginning of period $ 13 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 cashflows to be collected — Reductions for securities sold during the period — Balance at end of period $ 13 |
Schedule of Accumulated Other Comprehensive Income, Net of Tax | Accumulated other comprehensive income, net of tax, as of March 31, 2020 and December 31, 2019 was as follows: (Dollars in thousands) March 31, 2020 December 31, 2019 Net unrealized gains (losses) from: Fixed maturities $ 18,775 $ 21,591 Foreign currency fluctuations (2,335 ) (1,032 ) Deferred taxes (3,880 ) (2,950 ) Accumulated other comprehensive income, net of tax $ 12,560 $ 17,609 |
Changes In Accumulated Other Comprehensive Income | The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the quarters ended March 31, 2020 and 2019: Quarter Ended March 31, 2020 (Dollars In Thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ 18,641 $ (1,032 ) $ 17,609 Other comprehensive income before reclassification, before tax (884 ) (1,303 ) (2,187 ) Amounts reclassified from accumulated other comprehensive (income), before tax (1,932 ) — (1,932 ) Other comprehensive income, before tax (2,816 ) (1,303 ) (4,119 ) Income tax (expense) (930 ) — (930 ) Ending balance, net of tax $ 14,895 $ (2,335 ) $ 12,560 Quarter Ended March 31, 2019 (Dollars In Thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ (19,897 ) $ (1,334 ) $ (21,231 ) Other comprehensive income before reclassification, before tax 23,907 194 24,101 Amounts reclassified from accumulated other comprehensive income, before tax 2,195 — 2,195 Other comprehensive income, before tax 26,102 194 26,296 Income tax expense (3,396 ) — (3,396 ) Ending balance, net of tax $ 2,809 $ (1,140 ) $ 1,669 |
Reclassifications Out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive income for the quarters ended March 31, 2020 and 2019 were as follows: (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive Income Quarters Ended March 31, Details about Accumulated Other Comprehensive Income Components Affected Line Item in the Consolidated Statements of Operations 2020 2019 Unrealized gains and losses on available for sale securities Other net realized investment (gains) losses $ (1,932 ) $ 298 Other than temporary impairment losses on investments — 1,897 Total before tax (1,932 ) 2,195 Income tax expense (benefit) 218 (273 ) Unrealized gains and losses on available for sale securities, net of tax (1,714 ) 1,922 Foreign currency items Other net realized investment (gains) losses — — Income tax expense — — Foreign currency items, net of tax — — Total reclassifications Total reclassifications, net of tax $ (1,714 ) $ 1,922 |
Components of Net Realized Investment Gains (Losses) | The components of net realized investment gains (losses) for the quarters ended March 31, 2020 and 2019 were as follows: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Fixed maturities: Gross realized gains $ 2,243 $ 26 Gross realized losses (311 ) (2,221 ) Net realized gains (losses) 1,932 (2,195 ) Equity securities: Gross realized gains 1,822 16,685 Gross realized losses (51,804 ) (1,533 ) Net realized gains (losses) (49,982 ) 15,152 Derivatives: Gross realized gains 13,623 — Gross realized losses (33,735 ) (2,567 ) Net realized gains (losses) (1) (20,112 ) (2,567 ) Total net realized investment gains (losses) $ (68,162 ) $ 10,390 (1) Includes periodic net interest settlements related to the derivatives of $0.6 million and $0.2 million for the quarters ended March 31, 2020 and 2019, respectively. |
Summary of Calculation of Realized Gains and Losses | The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of March 31, 2020 and 2019: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Net gains and (losses) recognized during the period on equity securities $ (49,982 ) $ 15,152 Less: Net gains (losses) recognized during the period on equity securities sold during the period (4,221 ) 2,034 Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date $ (45,761 ) $ 13,118 |
Proceeds from Sales and Redemptions of Available-for-Sale Securities | The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the quarters ended March 31, 2020 and 2019 were as follows: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Fixed maturities $ 124,070 $ 61,258 Equity securities 49,546 15,354 |
Schedule of Investment Income | The sources of net investment income for the quarters ended March 31, 2020 and 2019 were as follows: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Fixed maturities $ 9,041 $ 9,968 Equity securities 1,364 1,137 Cash and cash equivalents 180 401 Other invested assets 533 (3,704 ) Total investment income 11,118 7,802 Investment expense (989 ) (583 ) Net investment income $ 10,129 $ 7,219 |
Schedule of Total Investment Return | The Company’s total investment return on a pre-tax basis for the quarters ended March 31, 2020 and 2019 were as follows: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Net investment income $ 10,129 $ 7,219 Net realized investment gains (losses) (68,162 ) 10,390 Change in unrealized holding gains and losses (4,119 ) 26,296 Net realized and unrealized investment returns (72,281 ) 36,686 Total investment return $ (62,152 ) $ 43,905 Total investment return % (1) (3.9 %) 2.9 % Average investment portfolio (2) $ 1,578,765 $ 1,514,292 (1) Not annualized. (2) Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period. |
Summary of Estimated Fair Values of Bonds Held on Deposit | The fair values were as follows as of March 31, 2020 and December 31, 2019: Estimated Fair Value (Dollars in thousands) March 31, 2020 December 31, 2019 On deposit with governmental authorities $ 27,278 $ 26,431 Intercompany trusts held for the benefit of U.S. policyholders 177,012 179,116 Held in trust pursuant to third party requirements 126,451 133,122 Letter of credit held for third party requirements 1,458 1,458 Securities held as collateral 107,258 91,229 Total $ 439,457 $ 431,356 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summarized Information on Location and Gross Amount of Derivatives on Consolidated Balance Sheets | The following table summarizes information on the location and the gross amount of the derivatives on the consolidated balance sheets as of March 31, 2020 and December 31, 2019: (Dollars in thousands) March 31, 2020 December 31, 2019 Derivatives Not Designated as Hedging Instruments under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value Interest rate swap agreements Other assets/liabilities $ 200,000 $ (19,059 ) $ 200,000 $ (10,275 ) Futures contracts on bonds (1) Other assets/liabilities 537 — 16,894 — Futures contracts on equities (1) Other assets/liabilities 89,179 — 57,816 — Total $ 289,716 $ (19,059 ) $ 274,710 $ (10,275 ) (1) Futures are settled daily such that their fair value is not reflected in the consolidated statements of financial position |
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 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 quarters ended March 31, 2020 and 2019: Quarters Ended March 31, (Dollars in thousands) Consolidated Statements of Operations Line 2020 2019 Interest rate swap agreements Net realized investment gains (losses) $ (9,423 ) $ (2,567 ) Futures contracts on bonds Net realized investment gains (losses) (2,399 ) — Futures contracts on equities Net realized investment gains (losses) (8,290 ) — Total $ (20,112 ) $ (2,567 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
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 March 31, 2020 and December 31, 2019 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value Measurements As of March 31, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 190,189 $ — $ — $ 190,189 Obligations of states and political subdivisions — 65,327 — 65,327 Mortgage-backed securities — 388,646 — 388,646 Commercial mortgage-backed securities — 166,962 — 166,962 Asset-backed securities — 147,097 — 147,097 Corporate bonds — 218,974 — 218,974 Foreign corporate bonds — 94,511 — 94,511 Total fixed maturities 190,189 1,081,517 — 1,271,706 Equity securities 164,032 10,354 — 174,386 Total assets measured at fair value $ 354,221 $ 1,091,871 $ — $ 1,446,092 Liabilities: Derivative instruments $ — $ 19,059 $ — $ 19,059 Total liabilities measured at fair value $ — $ 19,059 $ — $ 19,059 Fair Value Measurements As of December 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 156,689 $ — $ — $ 156,689 Obligations of states and political subdivisions — 63,838 — 63,838 Mortgage-backed securities — 328,374 — 328,374 Commercial mortgage-backed securities — 188,104 — 188,104 Asset-backed securities — 168,537 — 168,537 Corporate bonds — 248,259 — 248,259 Foreign corporate bonds — 99,358 — 99,358 Total fixed maturities 156,689 1,096,470 — 1,253,159 Equity securities 251,448 11,656 — 263,104 Total assets measured at fair value $ 408,137 $ 1,108,126 $ — $ 1,516,263 Liabilities: Derivative instruments $ — $ 10,275 $ — $ 10,275 Total liabilities measured at fair value $ — $ 10,275 $ — $ 10,275 |
Current Fair Value of Debt | For the Company’s material debt arrangements, the current fair value of the Company’s debt at March 31, 2020 and December 31, 2019 was as follows: March 31, 2020 December 31, 2019 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Margin Borrowing Facility $ 71,707 $ 71,707 $ 73,629 $ 73,629 7.75% Subordinated Notes due 2045 (1) 96,895 82,214 96,864 100,264 7.875% Subordinated Notes due 2047 (2) 126,182 109,282 126,147 134,462 Total $ 294,784 $ 263,203 $ 296,640 $ 308,355 (1) As of March 31, 2020 and December 31, 2019, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 is net of unamortized debt issuance cost of $3.1 million. (2) As of March 31, 2020 and December 31, 2019, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $3.8 million and $3.9 million, respectively. |
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 March 31, 2020 and December 31, 2019. March 31, 2020 December 31, 2019 (Dollars in thousands) Fair Value Future Funding Commitment Fair Value Future Funding Commitment European Non-Performing Loan Fund, LP (1) $ 12,510 $ 14,214 $ 13,530 $ 14,214 Distressed Debt Fund, LP (2) 24,305 17,000 23,966 17,000 Mortgage Debt Fund, LP (3) 10,493 506 9,783 506 Total $ 47,308 $ 31,720 $ 47,279 $ 31,720 ( 1 ) This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. ( 2 ) This limited partnership invests in stressed and distressed securities and structured products. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. ( 3 ) This limited partnership invests in REIT qualifying assets such as mortgage loans, investor property loans, and commercial mortgage loans. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Premiums Receivable and Reinsurance Receivables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Allowance For Credit Loss [Abstract] | |
Schedule of Allowance for Credit Losses Related to Premiums Receivable and Reinsurance Receivables | The following table is an analysis of the allowance for credit losses related to the Company's premiums receivable and reinsurance receivables for the quarter ended March 31, 2020: (Dollars in thousands) Premiums Receivable Reinsurance Receivables Beginning balance $ 2,754 $ 8,992 Current period provision for expected credit losses 162 — Write-offs (170 ) — Recoveries of amounts previously written off — — Ending balance $ 2,746 $ 8,992 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) before Income Taxes from its Non-U.S. Subsidiaries and U.S. Subsidiaries | The Company’s income (loss) before income taxes from its non-U.S. subsidiaries and U.S. subsidiaries for the quarters ended March 31, 2020 and 2019 were as follows: Quarter Ended March 31, 2020 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 17,517 $ 138,207 $ — $ 155,724 Net written premiums $ 17,517 $ 121,595 $ — $ 139,112 Net earned premiums $ 23,855 $ 120,613 $ — $ 144,468 Net investment income 6,376 7,250 (3,497 ) 10,129 Net realized investment losses (3,710 ) (64,452 ) — (68,162 ) Other income (loss) (318 ) 483 — 165 Total revenues 26,203 63,894 (3,497 ) 86,600 Losses and Expenses: Net losses and loss adjustment expenses 12,562 65,085 — 77,647 Acquisition costs and other underwriting expenses 8,549 47,863 — 56,412 Corporate and other operating expenses 1,127 3,096 — 4,223 Interest expense 342 8,020 (3,497 ) 4,865 Income (loss) before income taxes $ 3,623 $ (60,170 ) $ — $ (56,547 ) Quarter Ended March 31, 2019 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 17,549 $ 124,652 $ — $ 142,201 Net written premiums $ 17,542 $ 105,874 $ — $ 123,416 Net earned premiums $ 14,707 $ 107,382 $ — $ 122,089 Net investment income 4,370 3,136 (287 ) 7,219 Net realized investment gains (losses) (892 ) 11,282 — 10,390 Other income 15 473 — 488 Total revenues 18,200 122,273 (287 ) 140,186 Losses and Expenses: Net losses and loss adjustment expenses 4,980 53,341 — 58,321 Acquisition costs and other underwriting expenses 4,995 44,748 — 49,743 Corporate and other operating expenses 1,527 1,678 — 3,205 Interest expense 353 4,957 (287 ) 5,023 Income (loss) before income taxes $ 6,345 $ 17,549 $ — $ 23,894 |
Components of Income Tax Expense (Benefit) | The following table summarizes the components of income tax expense (benefit): Quarters Ended March 31, (Dollars in thousands) 2020 2019 Current income tax expense: Foreign $ — $ 46 U.S. Federal — — Total current income tax expense $ — 46 Deferred income tax expense (benefit): U.S. Federal (11,969 ) 4,248 Total deferred income tax expense (benefit) (11,969 ) 4,248 Total income tax expense (benefit) $ (11,969 ) $ 4,294 |
Differences in Tax Provision for Financial Statement Purposes and Expected Tax Provision at Weighted Average Tax Rate | The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate: Quarters Ended March 31, 2020 2019 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average tax rate $ (12,635 ) 22.3 % $ 3,732 15.6 % Adjustments: Tax exempt interest (1 ) — (1 ) — Dividend exclusion (71 ) 0.1 (77 ) (0.3 ) Non-deductible interest 679 (1.1 ) 680 2.8 Other 59 (0.1 ) (40 ) (0.1 ) Effective income tax expense (benefit) $ (11,969 ) 21.2 % $ 4,294 18.0 % |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Insurance [Abstract] | |
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses | Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Balance at beginning of period $ 630,181 $ 680,031 Less: Ceded reinsurance receivables 76,273 109,342 Net balance at beginning of period 553,908 570,689 Incurred losses and loss adjustment expenses related to: Current year 78,247 66,251 Prior years (600 ) (7,930 ) Total incurred losses and loss adjustment expenses 77,647 58,321 Paid losses and loss adjustment expenses related to: Current year 22,034 18,340 Prior years 48,806 61,776 Total paid losses and loss adjustment expenses 70,840 80,116 Net balance at end of period 560,715 548,894 Plus: Ceded reinsurance receivables 78,753 97,065 Balance at end of period $ 639,468 $ 645,959 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expenses were as follows: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Operating lease expenses $ 748 $ 819 Short-term lease expenses 2 3 Total lease expenses $ 750 $ 822 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Quarters Ended March 31, (Dollars in thousands) 2020 2019 Cash paid for amounts included in the measurement of liabilities: Operating leases $ 395 $ 574 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ — $ 14,897 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheets. (Dollars in thousands) Classification on the consolidated balance sheets March 31, 2020 December 31, 2019 Assets: Operating lease assets Other assets $ 22,071 $ 22,761 Liabilities: Operating lease liabilities Other liabilities $ 23,345 $ 23,539 Weighted-average remaining lease term: Operating leases 9.5 years 10.2 years Weighted-average discount rate: Operating leases (1) 2.7 % 2.7 % (1) Represents the Company’s incremental borrowing rate |
Future Minimum Lease Payments Under Non-cancelable Operating Leases | At March 31, 2020, future minimum lease payments under non-cancelable operating leases were as follows: (Dollars in thousands) 2020 (1) $ 1,579 2021 2,779 2022 2,659 2023 2,702 2024 2,746 Thereafter 14,142 Total future minimum lease payments $ 26,607 Less: amount representing interest 3,262 Present value of minimum lease payments $ 23,345 (1) Excludes the quarter ended March 31, 2020 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Information with Respect to A Ordinary Shares that were Surrendered or Repurchased | The following table provides information with respect to the A ordinary shares that were surrendered or repurchased during the quarter ended March 31, 2020: Period (1) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plan or Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs January 1-31, 2020 3,124 (2) $ 29.63 — — February 1-29, 2020 1,600 (2) $ 31.13 — — Total 4,724 $ 30.14 — (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 during the quarter ended March 31, 2019: Period (1) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plan or Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs January 1-31, 2019 7,945 (2) $ 36.23 — — February 1-28, 2019 19,083 (2) $ 34.59 — — Total 27,028 $ 35.07 — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. |
Schedule of Dividends Declared | Dividend payments of $0.25 per ordinary share were declared during the quarter ended March 31, 2020 as follows: Approval Date Record Date Payment Date Total Dividends Declared (Dollars in thousands) February 9, 2020 March 24, 2020 March 31, 2020 $ 3,539 Various (1) Various Various 102 Total $ 3,641 (1) Represents dividends declared on unvested shares, net of forfeitures. Dividend payments of $0.25 per ordinary share were declared during the quarter ended March 31, 2019 as follows: Approval Date Record Date Payment Date Total Dividends Declared (Dollars in thousands) February 10, 2019 March 22, 2019 March 29, 2019 $ 3,521 Various (1) Various Various 30 Total $ 3,551 (1) Represents dividends declared on unvested shares, net of forfeitures. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Quarters Ended March 31, (Dollars in thousands, except share and per share data) 2020 2019 Net income (loss) $ (44,578 ) $ 19,600 Basic earnings per share: Weighted average shares outstanding – basic 14,249,551 14,153,918 Net income (loss) per share $ (3.13 ) $ 1.38 Diluted earnings per share: Weighted average shares outstanding – diluted (1) 14,249,551 14,315,091 Net income (loss) per share $ (3.13 ) $ 1.37 (1) For the quarter ended March 31, 2020, weighted average shares outstanding – basic was used to calculate diluted earnings per share due to a net loss for the period. |
Reconciliation of Weighted Average Shares for Basic and Diluted Earnings Per Share | A reconciliation of weighted average shares for basic earnings per share to weighted average shares for diluted earnings per share is as follows: Quarters Ended March 31, 2020 2019 Weighted average shares for basic earnings per share 14,249,551 14,153,918 Non-vested restricted stock — 14,723 Options — 146,450 Weighted average shares for diluted earnings per share 14,249,551 14,315,091 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Business Segment Information | The following are tabulations of business segment information for the quarters ended March 31, 2020 and 2019: Quarter Ended March 31, 2020 (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 80,831 $ 35,243 $ 22,133 $ 17,517 $ 155,724 Net written premiums $ 72,483 $ 30,007 $ 19,105 $ 17,517 $ 139,112 Net earned premiums $ 67,714 $ 34,216 $ 18,683 $ 23,855 $ 144,468 Other income (loss) — 427 36 (295 ) 168 Total revenues 67,714 34,643 18,719 23,560 144,636 Losses and Expenses: Net losses and loss adjustment expenses 37,435 17,498 9,610 13,104 77,647 Acquisition costs and other underwriting expenses 25,993 14,232 7,638 8,549 56,412 Income from segments $ 4,286 $ 2,913 $ 1,471 $ 1,907 $ 10,577 Unallocated Items: Net investment income 10,129 Net realized investment loss (68,162 ) Other income (loss) (3 ) Corporate and other operating expenses (4,223 ) Interest expense (4,865 ) Loss before income taxes (56,547 ) Income tax benefit 11,969 Net loss (44,578 ) Segment assets $ 730,202 $ 209,758 $ 135,731 $ 276,640 $ 1,352,331 Corporate assets 676,173 Total assets $ 2,028,504 (1) Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018. (2) External business only, excluding business assumed from affiliates. Quarter Ended March 31, 2019 (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 64,213 $ 39,674 $ 20,765 $ 17,549 $ 142,201 Net written premiums $ 55,170 $ 33,212 $ 17,492 $ 17,542 $ 123,416 Net earned premiums $ 55,641 $ 34,619 $ 17,122 $ 14,707 $ 122,089 Other income — 443 30 15 488 Total revenues 55,641 35,062 17,152 14,722 122,577 Losses and Expenses: Net losses and loss adjustment expenses 21,651 20,503 8,138 8,029 58,321 Acquisition costs and other underwriting expenses 22,812 14,653 7,282 4,996 49,743 Income (loss) from segments $ 11,178 $ (94 ) $ 1,732 $ 1,697 $ 14,513 Unallocated Items: Net investment income 7,219 Net realized investment gain 10,390 Corporate and other operating expenses (3,205 ) Interest expense (5,023 ) Income before income taxes 23,894 Income tax benefit (4,294 ) Net income 19,600 Segment assets $ 684,497 $ 242,519 $ 135,727 $ 313,815 1,376,558 Corporate assets 608,350 Total assets $ 1,984,908 (1) Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018. (2) External business only, excluding business assumed from affiliates. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets at March 31, 2020 (Dollars in thousands) Global Indemnity Limited (Parent co- obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated ASSETS Total investments $ 32,865 $ 209,656 $ 1,250,879 $ — $ 1,493,400 Cash and cash equivalents 635 10,697 48,419 — 59,751 Investments in subsidiaries 1,175,117 368,560 392,126 (1,935,803 ) — Due from subsidiaries and affiliates 559 (27,056 ) 26,497 — — Notes receivable – affiliate — 80,049 445,498 (525,547 ) — Interest receivable – affiliate — 5,290 17,259 (22,549 ) — Premiums receivable, net — — 115,331 — 115,331 Reinsurance receivables, net — — 83,074 — 83,074 Funds held by ceding insurers — — 47,096 — 47,096 Federal income taxes receivable — 7,064 (1,554 ) — 5,510 Deferred federal income taxes — 43,334 (1,217 ) — 42,117 Deferred acquisition costs — — 69,615 — 69,615 Intangible assets — — 21,359 — 21,359 Goodwill — — 6,521 — 6,521 Prepaid reinsurance premiums — — 15,512 — 15,512 Receivable for securities sold — 48 (48 ) — — Other assets 8,598 22,243 45,300 (6,923 ) 69,218 Total assets $ 1,217,774 $ 719,885 $ 2,581,667 $ (2,490,822 ) $ 2,028,504 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Unpaid losses and loss adjustment expenses $ — $ — $ 639,468 $ — $ 639,468 Unearned premiums — — 308,301 — 308,301 Ceded balances payable — — 23,932 — 23,932 Payable for securities purchased — — 2,585 — 2,585 Contingent commissions — — 5,841 — 5,841 Debt — 301,707 — (6,923 ) 294,784 Notes payable – affiliates 520,498 — 5,049 (525,547 ) — Accrued interest payable – affiliates 20,554 — 1,995 (22,549 ) — Other liabilities 2,086 26,052 50,819 — 78,957 Total liabilities 543,138 327,759 1,037,990 (555,019 ) 1,353,868 Shareholders’ equity Total shareholders’ equity 674,636 392,126 1,543,677 (1,935,803 ) 674,636 Total liabilities and shareholders’ equity $ 1,217,774 $ 719,885 $ 2,581,667 $ (2,490,822 ) $ 2,028,504 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Balance Sheets at December 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated ASSETS Total investments $ 44,468 $ 257,317 $ 1,261,757 $ — $ 1,563,542 Cash and cash equivalents 977 2,663 40,631 — 44,271 Investments in subsidiaries 1,218,491 355,777 434,278 (2,008,546 ) — Due from subsidiaries and affiliates (3,612 ) (3,965 ) 7,577 — — Notes receivable – affiliate — 80,049 445,498 (525,547 ) — Interest receivable – affiliate — 5,014 17,258 (22,272 ) — Premiums receivable, net — — 118,035 — 118,035 Reinsurance receivables, net — — 83,938 — 83,938 Funds held by ceding insurers — — 48,580 — 48,580 Federal income taxes receivable — 14,197 (3,208 ) — 10,989 Deferred federal income taxes — 31,833 (756 ) — 31,077 Deferred acquisition costs — — 70,677 — 70,677 Intangible assets — — 21,491 — 21,491 Goodwill — — 6,521 — 6,521 Prepaid reinsurance premiums — — 16,716 — 16,716 Other assets 9,394 12,622 45,021 (6,989 ) 60,048 Total assets $ 1,269,718 $ 755,507 $ 2,614,014 $ (2,563,354 ) $ 2,075,885 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Unpaid losses and loss adjustment expenses $ — $ — $ 630,181 $ — $ 630,181 Unearned premiums — — 314,861 — 314,861 Ceded balances payable — — 20,404 — 20,404 Payable for securities purchased — — 850 — 850 Contingent commissions — — 11,928 — 11,928 Debt — 303,629 — (6,989 ) 296,640 Notes payable – affiliates 520,498 — 5,049 (525,547 ) — Accrued interest payable – affiliates 20,343 — 1,929 (22,272 ) — Other liabilities 2,068 17,600 54,544 — 74,212 Total liabilities 542,909 321,229 1,039,746 (554,808 ) 1,349,076 Shareholders’ equity Total shareholders’ equity 726,809 434,278 1,574,268 (2,008,546 ) 726,809 Total liabilities and shareholders’ equity $ 1,269,718 $ 755,507 $ 2,614,014 $ (2,563,354 ) $ 2,075,885 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments |
Schedule of Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations for the Quarter Ended March 31, 2020 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Revenues: Net earned premiums $ — $ — $ 144,468 $ — $ 144,468 Net investment income (202 ) 2,071 8,537 (277 ) 10,129 Net realized investment gains (losses) (4,603 ) (64,191 ) 632 — (68,162 ) Other income — 19 146 — 165 Total revenues (4,805 ) (62,101 ) 153,783 (277 ) 86,600 Losses and Expenses: Net losses and loss adjustment expenses — — 77,647 — 77,647 Acquisition costs and other underwriting expenses — — 56,412 — 56,412 Corporate and other operating expenses 1,173 2,954 96 — 4,223 Interest expense 276 4,799 67 (277 ) 4,865 Income (loss) before equity in net income (loss) of subsidiaries and income taxes (6,254 ) (69,854 ) 19,561 — (56,547 ) Equity in net income (loss) of subsidiaries (38,324 ) 10,138 (45,653 ) 73,839 — Loss before income taxes (44,578 ) (59,716 ) (26,092 ) 73,839 (56,547 ) Income tax expense (benefit) — (14,063 ) 2,094 — (11,969 ) Net loss $ (44,578 ) $ (45,653 ) $ (28,186 ) $ 73,839 $ (44,578 ) (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Operations for the Quarter Ended March 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Revenues: Net earned premiums $ — $ — $ 122,089 $ — $ 122,089 Net investment income 642 (2,075 ) 8,939 (287 ) 7,219 Net realized investment gains (losses) (7 ) 12,076 (1,679 ) — 10,390 Other income — 28 460 — 488 Total revenues 635 10,029 129,809 (287 ) 140,186 Losses and Expenses: Net losses and loss adjustment expenses — — 58,321 — 58,321 Acquisition costs and other underwriting expenses — — 49,743 — 49,743 Corporate and other operating expenses 1,329 1,566 310 — 3,205 Interest expense 274 4,957 79 (287 ) 5,023 Income (loss) before equity in net income of subsidiaries and income taxes (968 ) 3,506 21,356 — 23,894 Equity in net income of subsidiaries 20,568 7,893 10,059 (38,520 ) — Income before income taxes 19,600 11,399 31,415 (38,520 ) 23,894 Income tax expense — 1,340 2,954 — 4,294 Net Income $ 19,600 $ 10,059 $ 28,461 $ (38,520 ) $ 19,600 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments |
Schedule of Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income for the Quarter Ended March 31, 2020 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Net income (loss) $ (44,578 ) $ (45,653 ) $ (28,186 ) $ 73,839 $ (44,578 ) Other comprehensive income, net of tax: Unrealized holding gains (losses) — 856 (2,888 ) — (2,032 ) Equity in other comprehensive income of unconsolidated subsidiaries (5,049 ) 2,645 3,501 (1,097 ) — Portion of other-than-temporary impairment losses recognized in other comprehensive income — — — — — Reclassification adjustment for gains included in net income — — (1,714 ) — (1,714 ) Unrealized foreign currency translation gains — — (1,303 ) — (1,303 ) Other comprehensive income, net of tax (5,049 ) 3,501 (2,404 ) (1,097 ) (5,049 ) Comprehensive income (loss), net of tax $ (49,627 ) $ (42,152 ) $ (30,590 ) $ 72,742 $ (49,627 ) (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments Condensed Consolidating Statements of Comprehensive Income for the Quarter Ended March 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Limited Consolidated Net income $ 19,600 $ 10,059 $ 28,461 $ (38,520 ) $ 19,600 Other comprehensive income, net of tax: Unrealized holding gains 659 2,047 18,079 — 20,785 Equity in other comprehensive income of unconsolidated subsidiaries 22,234 10,325 12,774 (45,333 ) — Portion of other-than-temporary impairment losses recognized in other comprehensive income — — (1 ) — (1 ) Reclassification adjustment for losses included in net income 7 402 1,513 — 1,922 Unrealized foreign currency translation gains — — 194 — 194 Other comprehensive income, net of tax 22,900 12,774 32,559 (45,333 ) 22,900 Comprehensive income, net of tax $ 42,500 $ 22,833 $ 61,020 $ (83,853 ) $ 42,500 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments |
Schedule of Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows for the Quarter Ended March 31, 2020 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Global Indemnity Limited Consolidated Cash flows from operating activities: Net cash provided by (used for) operating activities $ (3,644 ) $ 24,655 $ (227 ) $ 20,784 Cash flows from investing activities: Proceeds from sale of fixed maturities — 3,007 121,063 124,070 Proceeds from sale of equity securities 7,566 41,980 — 49,546 Proceeds from maturity of fixed maturities — — 13,259 13,259 Proceeds from other invested assets 1,020 (338 ) — 682 Amounts paid in connection with derivatives — (20,007 ) — (20,007 ) Purchases of fixed maturities — (30,117 ) (126,307 ) (156,424 ) Purchases of equity securities (1,586 ) (9,224 ) — (10,810 ) Purchases of other invested assets — — — — Net cash provided by (used for) investing activities 7,000 (14,699 ) 8,015 316 Cash flows from financing activities: Net borrowings under margin borrowing facility — (1,922 ) — (1,922 ) Dividends paid to shareholders (3,555 ) — — (3,555 ) Purchase of A ordinary shares (143 ) — — (143 ) Net cash used for financing activities (3,698 ) (1,922 ) — (5,620 ) Net change in cash and cash equivalents (342 ) 8,034 7,788 15,480 Cash and cash equivalents at beginning of period 977 2,663 40,631 44,271 Cash and cash equivalents at end of period $ 635 $ 10,697 $ 48,419 $ 59,751 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations Condensed Consolidating Statements of Cash Flows for the Quarter Ended March 31, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) Global Indemnity Group, LLC (Subsidiary co-obligor) Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Global Indemnity Limited Consolidated Cash flows from operating activities: Net cash provided by (used for) operating activities $ 2,225 $ (10,514 ) $ (14,901 ) $ (23,190 ) Cash flows from investing activities: Proceeds from sale of fixed maturities 9,567 12,200 39,491 61,258 Proceeds from sale of equity securities — 15,354 — 15,354 Proceeds from maturity of fixed maturities — — 19,352 19,352 Proceeds from other invested assets 1,445 — — 1,445 Amounts paid in connection with derivatives — (3,735 ) — (3,735 ) Purchases of fixed maturities (10,548 ) (23,149 ) (78,327 ) (112,024 ) Purchases of equity securities — (17,989 ) — (17,989 ) Purchases of other invested assets — (3,500 ) — (3,500 ) Net cash provided by (used for) investing activities 464 (20,819 ) (19,484 ) (39,839 ) Cash flows from financing activities: Net borrowings under margin borrowing facility — 5,950 — 5,950 Dividends paid to shareholders (3,595 ) — — (3,595 ) Purchase of A ordinary shares (949 ) — — (949 ) Net cash provided by (used for) financing activities (4,544 ) 5,950 — 1,406 Net change in cash and cash equivalents (1,855 ) (25,383 ) (34,385 ) (61,623 ) Cash and cash equivalents at beginning of period 2,221 26,039 71,237 99,497 Cash and cash equivalents at end of period $ 366 $ 656 $ 36,852 $ 37,874 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations |
Principles of Consolidation a_3
Principles of Consolidation and Basis of Presentation - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020SegmentProduct | |
Organization And Basis Of Presentation [Line Items] | |
Date of incorporation | Feb. 9, 2016 |
State of incorporation | E9 |
Kind of listing | A ordinary shares |
Number of business segments | Segment | 4 |
Commercial Specialty | |
Organization And Basis Of Presentation [Line Items] | |
Number of product classifications | Product | 4 |
Investments - Additional Inform
Investments - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2020USD ($)Entity | Dec. 31, 2019USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Accrued interest receivable | $ 6,600,000 | $ 7,000,000 |
Investments in a single issuer as a percentage of shareholders' equity | 3.00% | 3.00% |
Fixed maturity securities with market value | $ 0 | $ 0 |
Investments in insurance enhanced bonds | $ 37,500,000 | |
Insurance enhanced bonds as a percentage of total cash and invested assets | 2.40% | |
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | $ 37,500,000 | |
Variable Interest Entity, Not Primary Beneficiary | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of VIE's | Entity | 3 | |
Ownership interest exceeds respective investments | 3.00% | |
One of the Company's variable interest VIE's, invests in distressed securities and assets | ||
Debt Securities, Available-for-sale [Line Items] | ||
Significant variable interest in carrying value of the non-consolidated VIE | $ 12,500,000 | 13,500,000 |
Variable interest entities, maximum exposure to loss | 26,700,000 | 27,700,000 |
Second VIE that invests in distressed securities and assets | ||
Debt Securities, Available-for-sale [Line Items] | ||
Significant variable interest in carrying value of the non-consolidated VIE | 24,300,000 | 24,000,000 |
Variable interest entities, maximum exposure to loss | 41,300,000 | 41,000,000 |
Third VIE that invests in REIT qualifying assets | ||
Debt Securities, Available-for-sale [Line Items] | ||
Significant variable interest in carrying value of the non-consolidated VIE | 10,500,000 | 9,800,000 |
Variable interest entities, maximum exposure to loss | 11,000,000 | $ 10,300,000 |
Municipal Bond Insurance Association | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | 3,900,000 | |
Assured Guaranty Corporation | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | $ 10,300,000 | |
Fannie Mae Mortgage Pool | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment in mortgage pool as percentage of shareholders' equity | 4.70% | 4.20% |
Municipal Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in insurance enhanced bonds | $ 16,400,000 | |
Federal Home Loan Mortgage Corporation | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | 21,100,000 | |
Ambac Financial Group | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | 2,200,000 | |
Federal Deposit Insurance Corporation | Maximum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | 100,000 | |
Commercial Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | $ 3,739,000 | |
Weighted average credit enhancement | 29.80% | |
Investments in insurance enhanced bonds | $ 9,900,000 | |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 7,965,000 | |
U.S. Treasury and Agency Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 25,000 | |
Obligations of States and Political Subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 218,000 | |
Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 3,179,000 | |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | $ 9,215,000 | |
Weighted average credit enhancement | 32.30% | |
Foreign Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | $ 2,394,000 | |
Collateralized Mortgage Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in insurance enhanced bonds | $ 11,200,000 |
Schedule of Amortized Cost and
Schedule of Amortized Cost and Estimated Fair Value of Company's Fixed Maturities Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | $ 1,252,931 | $ 1,231,568 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 45,510 | 23,641 |
Fixed maturities, Gross Unrealized losses | (26,735) | (2,050) |
Fixed maturities, Estimated Fair Value | 1,271,706 | 1,253,159 |
U.S. Treasury and Agency Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 174,475 | 153,906 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 15,739 | 3,580 |
Fixed maturities, Gross Unrealized losses | (25) | (797) |
Fixed maturities, Estimated Fair Value | 190,189 | 156,689 |
Obligations of States and Political Subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 63,878 | 63,256 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 1,667 | 853 |
Fixed maturities, Gross Unrealized losses | (218) | (271) |
Fixed maturities, Estimated Fair Value | 65,327 | 63,838 |
Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 377,274 | 325,448 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 14,551 | 3,177 |
Fixed maturities, Gross Unrealized losses | (3,179) | (251) |
Fixed maturities, Estimated Fair Value | 388,646 | 328,374 |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 155,937 | 168,020 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 375 | 937 |
Fixed maturities, Gross Unrealized losses | (9,215) | (420) |
Fixed maturities, Estimated Fair Value | 147,097 | 168,537 |
Commercial Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 164,211 | 183,944 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 6,490 | 4,369 |
Fixed maturities, Gross Unrealized losses | (3,739) | (209) |
Fixed maturities, Estimated Fair Value | 166,962 | 188,104 |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 221,326 | 239,860 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 5,613 | 8,478 |
Fixed maturities, Gross Unrealized losses | (7,965) | (79) |
Fixed maturities, Estimated Fair Value | 218,974 | 248,259 |
Foreign Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 95,830 | 97,134 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 1,075 | 2,247 |
Fixed maturities, Gross Unrealized losses | (2,394) | (23) |
Fixed maturities, Estimated Fair Value | $ 94,511 | $ 99,358 |
Schedule of Investments in Equi
Schedule of Investments in Equity Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | $ 174,386 | $ 263,104 |
Common Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | 102,349 | 135,329 |
Preferred Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | 10,354 | 11,656 |
Mutual Funds that Invest in Common Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | 22,998 | 61,471 |
Mutual Funds that Invest in Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | $ 38,685 | $ 54,648 |
Summary of Amortized Cost and E
Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | $ 31,859 | |
Due in one year through five years, Amortized Cost | 245,462 | |
Due in five years through ten years, Amortized Cost | 190,598 | |
Due in ten years through fifteen years, Amortized Cost | 27,834 | |
Due after fifteen years, Amortized Cost | 59,756 | |
Fixed maturities, Amortized Cost | 1,252,931 | $ 1,231,568 |
Due in one year or less, Estimated Fair value | 32,006 | |
Due in one year through five years, Estimated Fair value | 250,110 | |
Due in five years through ten years, Estimated Fair value | 189,500 | |
Due in ten years through fifteen years, Estimated Fair value | 29,712 | |
Due after fifteen years, Estimated Fair value | 67,673 | |
Fixed Maturities, estimated fair value | 1,271,706 | 1,253,159 |
Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 377,274 | |
Fixed maturities, Amortized Cost | 377,274 | 325,448 |
Estimated Fair value | 388,646 | |
Fixed Maturities, estimated fair value | 388,646 | 328,374 |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 155,937 | |
Fixed maturities, Amortized Cost | 155,937 | 168,020 |
Estimated Fair value | 147,097 | |
Fixed Maturities, estimated fair value | 147,097 | 168,537 |
Commercial Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 164,211 | |
Fixed maturities, Amortized Cost | 164,211 | 183,944 |
Estimated Fair value | 166,962 | |
Fixed Maturities, estimated fair value | $ 166,962 | $ 188,104 |
Summary of Securities with Gros
Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
U.S. Treasury and Agency Obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | $ (25) | ||
Obligations of States and Political Subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (218) | ||
Mortgage Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (3,179) | ||
Asset-backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (9,215) | ||
Commercial Mortgage-Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (3,739) | ||
Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (7,965) | ||
Foreign Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (2,394) | ||
Fixed Maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 319,105 | $ 249,721 | |
Less than 12 months, Gross Unrealized Losses | (24,549) | (1,774) | |
12 months or longer, Fair Value | [1] | 16,914 | 21,034 |
12 months or longer, Gross Unrealized Losses | [1] | (2,186) | (276) |
Total, Fair Value | 336,019 | 270,755 | |
Total, Gross Unrealized Losses | (26,735) | (2,050) | |
Fixed Maturities | U.S. Treasury and Agency Obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 7,498 | 35,633 | |
Less than 12 months, Gross Unrealized Losses | (25) | (797) | |
12 months or longer, Fair Value | [1] | 0 | 0 |
12 months or longer, Gross Unrealized Losses | [1] | 0 | 0 |
Total, Fair Value | 7,498 | 35,633 | |
Total, Gross Unrealized Losses | (25) | (797) | |
Fixed Maturities | Obligations of States and Political Subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 6,654 | 27,180 | |
Less than 12 months, Gross Unrealized Losses | (218) | (271) | |
12 months or longer, Fair Value | [1] | 0 | 0 |
12 months or longer, Gross Unrealized Losses | [1] | 0 | 0 |
Total, Fair Value | 6,654 | 27,180 | |
Total, Gross Unrealized Losses | (218) | (271) | |
Fixed Maturities | Mortgage Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 33,010 | 93,579 | |
Less than 12 months, Gross Unrealized Losses | (3,178) | (244) | |
12 months or longer, Fair Value | [1] | 60 | 902 |
12 months or longer, Gross Unrealized Losses | [1] | (1) | (7) |
Total, Fair Value | 33,070 | 94,481 | |
Total, Gross Unrealized Losses | (3,179) | (251) | |
Fixed Maturities | Asset-backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 107,158 | 43,402 | |
Less than 12 months, Gross Unrealized Losses | (7,030) | (167) | |
12 months or longer, Fair Value | [1] | 16,820 | 16,152 |
12 months or longer, Gross Unrealized Losses | [1] | (2,185) | (253) |
Total, Fair Value | 123,978 | 59,554 | |
Total, Gross Unrealized Losses | (9,215) | (420) | |
Fixed Maturities | Commercial Mortgage-Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 41,561 | 25,698 | |
Less than 12 months, Gross Unrealized Losses | (3,739) | (196) | |
12 months or longer, Fair Value | [1] | 34 | 1,945 |
12 months or longer, Gross Unrealized Losses | [1] | 0 | (13) |
Total, Fair Value | 41,595 | 27,643 | |
Total, Gross Unrealized Losses | (3,739) | (209) | |
Fixed Maturities | Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 75,676 | 19,407 | |
Less than 12 months, Gross Unrealized Losses | (7,965) | (79) | |
12 months or longer, Fair Value | [1] | 0 | 0 |
12 months or longer, Gross Unrealized Losses | [1] | 0 | 0 |
Total, Fair Value | 75,676 | 19,407 | |
Total, Gross Unrealized Losses | (7,965) | (79) | |
Fixed Maturities | Foreign Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 47,548 | 4,822 | |
Less than 12 months, Gross Unrealized Losses | (2,394) | (20) | |
12 months or longer, Fair Value | [1] | 0 | 2,035 |
12 months or longer, Gross Unrealized Losses | [1] | 0 | (3) |
Total, Fair Value | 47,548 | 6,857 | |
Total, Gross Unrealized Losses | $ (2,394) | $ (23) | |
[1] | Fixed maturities in a gross unrealized loss position are 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. |
Schedule of Other Than Temporar
Schedule of Other Than Temporary Impairments on Investments (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
OTTI losses, gross | $ (1,897) |
Portion of loss recognized in other comprehensive income (pre-tax) | 0 |
Net impairment losses on fixed maturities recognized in earnings | $ (1,897) |
Schedule of Credit Losses Recog
Schedule of Credit Losses Recognized in Earnings (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Balance at beginning of period | $ 13 |
Additions where no OTTI was previously recorded | 0 |
Additions where an OTTI was previously recorded | 0 |
Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery | 0 |
Reductions reflecting increases in expected cash flows to be collected | 0 |
Reductions for securities sold during the period | 0 |
Balance at end of period | $ 13 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income, Net of Tax (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Investments Debt And Equity Securities [Abstract] | ||||
Fixed maturities | $ 18,775 | $ 21,591 | ||
Foreign currency fluctuations | (2,335) | (1,032) | ||
Deferred taxes | (3,880) | (2,950) | ||
Accumulated other comprehensive income, net of tax | $ 12,560 | $ 17,609 | $ 1,669 | $ (21,231) |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance, net of tax | $ 17,609 | $ (21,231) |
Other comprehensive income before reclassification, before tax | (2,187) | 24,101 |
Amounts reclassified from accumulated other comprehensive (income), before tax | (1,932) | 2,195 |
Other comprehensive income, before tax | (4,119) | 26,296 |
Income tax (expense) | (930) | (3,396) |
Ending balance, net of tax | 12,560 | 1,669 |
Unrealized Gains and Losses on Available for Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance, net of tax | 18,641 | (19,897) |
Other comprehensive income before reclassification, before tax | (884) | 23,907 |
Amounts reclassified from accumulated other comprehensive (income), before tax | (1,932) | 2,195 |
Other comprehensive income, before tax | (2,816) | 26,102 |
Income tax (expense) | (930) | (3,396) |
Ending balance, net of tax | 14,895 | 2,809 |
Foreign Currency Items | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance, net of tax | (1,032) | (1,334) |
Other comprehensive income before reclassification, before tax | (1,303) | 194 |
Amounts reclassified from accumulated other comprehensive (income), before tax | 0 | 0 |
Other comprehensive income, before tax | (1,303) | 194 |
Income tax (expense) | 0 | 0 |
Ending balance, net of tax | $ (2,335) | $ (1,140) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other net realized investment (gains) losses | $ 68,162 | $ (12,287) |
Total before tax | 56,547 | (23,894) |
Income tax expense (benefit) | (11,969) | 4,294 |
Net income (loss) | 44,578 | (19,600) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications, net of tax | (1,714) | 1,922 |
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 | (1,932) | 298 |
Other than temporary impairment losses on investments | 0 | 1,897 |
Total before tax | (1,932) | 2,195 |
Income tax expense (benefit) | 218 | (273) |
Net income (loss) | (1,714) | 1,922 |
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 | 0 | 0 |
Income tax expense (benefit) | 0 | 0 |
Net income (loss) | $ 0 | $ 0 |
Components of Net Realized Inve
Components of Net Realized Investment Gains (Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Debt Securities, Available-for-sale [Line Items] | |||
Total net realized investment gains (losses) | $ (68,162) | $ 10,390 | |
Equity securities, Gross realized gains | 1,822 | 16,685 | |
Equity securities, Gross realized losses | (51,804) | (1,533) | |
Equity securities, Total net realized investment gains (losses) | (49,982) | 15,152 | |
Not Designated as Hedging Instrument | Interest Rate Swap | |||
Debt Securities, Available-for-sale [Line Items] | |||
Gross realized gains | 13,623 | 0 | |
Gross realized losses | (33,735) | (2,567) | |
Total net realized investment gains (losses) | [1] | (20,112) | (2,567) |
Fixed Maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Gross realized gains | 2,243 | 26 | |
Gross realized losses | (311) | (2,221) | |
Total net realized investment gains (losses) | $ 1,932 | $ (2,195) | |
[1] | Includes periodic net interest settlements related to the derivatives of $0.6 million and $0.2 million for the quarters ended March 31, 2020 and 2019, respectively. |
Components of Net Realized In_2
Components of Net Realized Investment Gains (Losses) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Net interest settlements | $ (20,112) | $ (2,567) |
Interest Rate Swap | ||
Debt Securities, Available-for-sale [Line Items] | ||
Net interest settlements | $ 600 | $ 200 |
Summary of Calculation of Reali
Summary of Calculation of Realized Gains and Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | ||
Equity securities, Total net realized investment gains (losses) | $ (49,982) | $ 15,152 |
Less: Net gains (losses) recognized during the period on equity securities sold during the period | (4,221) | 2,034 |
Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date | $ (45,761) | $ 13,118 |
Schedule of Proceeds From Sales
Schedule of Proceeds From Sales and Redemptions of Available for Sale Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | ||
Fixed maturities | $ 124,070 | $ 61,258 |
Equity securities | $ 49,546 | $ 15,354 |
Schedule of Investment Income (
Schedule of Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Investment income | $ 11,118 | $ 7,802 |
Investment expense | (989) | (583) |
Net investment income | 10,129 | 7,219 |
Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment income | 9,041 | 9,968 |
Equity Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment income | 1,364 | 1,137 |
Cash and Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment income | 180 | 401 |
Other Invested Assets | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment income | $ 533 | $ (3,704) |
Schedule of Total Investment Re
Schedule of Total Investment Return (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Investments Debt And Equity Securities [Abstract] | |||
Net investment income | $ 10,129 | $ 7,219 | |
Net realized investment gains (losses) | (68,162) | 10,390 | |
Change in unrealized holding gains and losses | (4,119) | 26,296 | |
Net realized and unrealized investment returns | (72,281) | 36,686 | |
Total investment return | $ (62,152) | $ 43,905 | |
Total investment return % | [1] | (3.90%) | 2.90% |
Average investment portfolio | [2] | $ 1,578,765 | $ 1,514,292 |
[1] | Not annualized. | ||
[2] | Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period. |
Summary of Estimated Fair Value
Summary of Estimated Fair Values of Bonds Held on Deposit (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 439,457 | $ 431,356 |
On Deposit With Governmental Authorities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 27,278 | 26,431 |
Intercompany Trusts Held For Benefit Of U.S. Policyholders | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 177,012 | 179,116 |
Held In Trust Pursuant To Third Party Requirements | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 126,451 | 133,122 |
Letter Of Credit Held For Third Party Requirements | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 1,458 | 1,458 |
Securities Held As Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 107,258 | $ 91,229 |
Summarized Information on Locat
Summarized Information on Location and Gross Amount of Derivatives on Consolidated Balance Sheets (Detail) - Not Designated as Hedging Instrument - Other Assets Liabilities - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 289,716 | $ 274,710 | |
Fair Value | (19,059) | (10,275) | |
Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 200,000 | 200,000 | |
Fair Value | (19,059) | (10,275) | |
Futures Contracts on Bonds | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | [1] | 537 | 16,894 |
Fair Value | [1] | 0 | 0 |
Futures Contracts on Equities | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | [1] | 89,179 | 57,816 |
Fair Value | [1] | $ 0 | $ 0 |
[1] | Futures are settled daily such that their fair value is not reflected in the consolidated statements of financial position |
Summary of Net Gain (Loss) Incl
Summary of Net Gain (Loss) Included in Consolidated Statements of Operations for Changes in Fair Value of Derivatives and Periodic Net Interest Settlements Under Derivatives (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) for changes in fair value and net settlements of derivatives | $ (20,112) | $ (2,567) |
Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) for changes in fair value and net settlements of derivatives | 600 | 200 |
Interest Rate Swap | Net Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) for changes in fair value and net settlements of derivatives | (9,423) | (2,567) |
Futures Contracts on Bonds | Net Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) for changes in fair value and net settlements of derivatives | (2,399) | 0 |
Futures Contracts on Equities | Net Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) for changes in fair value and net settlements of derivatives | $ (8,290) | $ 0 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Trading Futures Contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Initial margin in securities | $ 10.2 | $ 3 |
Mark-to-market receivable | 1.9 | 0.3 |
Other Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Funds needed to post execute swap transaction | 3.7 | 3 |
Other Assets | Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Margin calls made in connection with interest rate swaps | $ 19 | $ 12.5 |
Company's Invested Assets and D
Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | $ 1,271,706 | $ 1,253,159 |
Equity securities | 174,386 | 263,104 |
U.S. Treasury and Agency Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 190,189 | 156,689 |
Obligations of States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 65,327 | 63,838 |
Mortgage Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 388,646 | 328,374 |
Commercial Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 166,962 | 188,104 |
Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 147,097 | 168,537 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 218,974 | 248,259 |
Foreign Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 94,511 | 99,358 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 1,271,706 | 1,253,159 |
Equity securities | 174,386 | 263,104 |
Total invested assets | 1,446,092 | 1,516,263 |
Total invested liabilities | 19,059 | 10,275 |
Fair Value, Measurements, Recurring | Derivative instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested liabilities | 19,059 | 10,275 |
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 | 190,189 | 156,689 |
Equity securities | 164,032 | 251,448 |
Total invested assets | 354,221 | 408,137 |
Total invested liabilities | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Derivative instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested liabilities | 0 | |
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 | 1,081,517 | 1,096,470 |
Equity securities | 10,354 | 11,656 |
Total invested assets | 1,091,871 | 1,108,126 |
Total invested liabilities | 19,059 | 10,275 |
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 | 19,059 | 10,275 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | |
Equity securities | 0 | |
Total invested assets | 0 | |
Total invested liabilities | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Derivative instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested liabilities | 0 | |
Fair Value, Measurements, Recurring | U.S. Treasury and Agency Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 190,189 | 156,689 |
Fair Value, Measurements, Recurring | U.S. Treasury and Agency Obligations | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 190,189 | 156,689 |
Fair Value, Measurements, Recurring | U.S. Treasury and Agency Obligations | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | |
Fair Value, Measurements, Recurring | U.S. Treasury and Agency Obligations | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | |
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 65,327 | 63,838 |
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | |
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 65,327 | 63,838 |
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | |
Fair Value, Measurements, Recurring | Mortgage Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 388,646 | 328,374 |
Fair Value, Measurements, Recurring | Mortgage Backed Securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | |
Fair Value, Measurements, Recurring | Mortgage Backed Securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 388,646 | 328,374 |
Fair Value, Measurements, Recurring | Mortgage Backed Securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | |
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 166,962 | 188,104 |
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | |
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 166,962 | 188,104 |
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | |
Fair Value, Measurements, Recurring | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 147,097 | 168,537 |
Fair Value, Measurements, Recurring | Asset-backed Securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | |
Fair Value, Measurements, Recurring | Asset-backed Securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 147,097 | 168,537 |
Fair Value, Measurements, Recurring | Asset-backed Securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | |
Fair Value, Measurements, Recurring | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 218,974 | 248,259 |
Fair Value, Measurements, Recurring | Corporate Bonds | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | |
Fair Value, Measurements, Recurring | Corporate Bonds | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 218,974 | 248,259 |
Fair Value, Measurements, Recurring | Corporate Bonds | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | |
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 94,511 | 99,358 |
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | |
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 94,511 | $ 99,358 |
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | $ 0 |
Current Fair Value of Debt (Det
Current Fair Value of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | $ 294,784 | $ 296,640 | |
Debt, fair value | 263,203 | 308,355 | |
7.75% Subordinated Notes due 2045 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | [1] | 96,895 | 96,864 |
Debt, fair value | [1] | 82,214 | 100,264 |
7.875% Subordinated Notes due 2047 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | [2] | 126,182 | 126,147 |
Debt, fair value | [2] | 109,282 | 134,462 |
Margin borrowing facilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 71,707 | 73,629 | |
Debt, fair value | $ 71,707 | $ 73,629 | |
[1] | As of March 31, 2020 and December 31, 2019, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 is net of unamortized debt issuance cost of $3.1 million. | ||
[2] | As of March 31, 2020 and December 31, 2019, the carrying value and fair value of the 7.875% Subordinated Notes due 2047 are net of unamortized debt issuance cost of $3.8 million and $3.9 million, respectively. |
Current Fair Value of Debt (Par
Current Fair Value of Debt (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
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 | 2045 | 2045 |
Unamortized Debt Issuance Costs | $ 3.1 | $ 3.1 |
7.875% Subordinated Notes due 2047 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Subordinated Notes percentage | 7.875% | 7.875% |
Subordinated Notes due date | 2047 | 2047 |
Unamortized Debt Issuance Costs | $ 3.8 | $ 3.9 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity in the earnings of liability companies or partnerships | $ 0 | $ 0 | |
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 | $ 500 | $ (3,700) | |
Variable Interest Entity, Not Primary Beneficiary | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Ownership interest exceeds respective investments | 3.00% | ||
7.75% Subordinated Notes due 2045 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Subordinated Notes due date | 2045 | 2045 | |
7.875% Subordinated Notes due 2047 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Subordinated Notes due date | 2047 | 2047 | |
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 | 2045 | ||
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 | 2047 |
Fair Value and Future Funding C
Fair Value and Future Funding Commitments Related to These Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 47,308 | $ 47,279 | |
Future Funding Commitments | 31,720 | 31,720 | |
European Non-Performing Loan Fund, LP | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [1] | 12,510 | 13,530 |
Future Funding Commitments | [1] | 14,214 | 14,214 |
Distressed Debt Fund, LP | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [2] | 24,305 | 23,966 |
Future Funding Commitments | [2] | 17,000 | 17,000 |
Mortgage Debt Fund, LP | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [3] | 10,493 | 9,783 |
Future Funding Commitments | [3] | $ 506 | $ 506 |
[1] | This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. | ||
[2] | This limited partnership invests in stressed and distressed securities and structured products. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. | ||
[3] | This limited partnership invests in REIT qualifying assets such as mortgage loans, investor property loans, and commercial mortgage loans. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. |
Allowance for Credit Losses -_3
Allowance for Credit Losses - Premiums Receivable and Reinsurance Receivables - Schedule of Allowance for Credit Losses Related to Premiums Receivable and Reinsurance Receivables (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Premiums Receivable | |
Beginning balance | $ 2,754 |
Current period provision for expected credit losses | 162 |
Write-offs | (170) |
Recoveries of amounts previously written off | 0 |
Ending balance | 2,746 |
Reinsurance Receivables | |
Beginning balance | 8,992 |
Current period provision for expected credit losses | 0 |
Write-offs | 0 |
Recoveries of amounts previously written off | 0 |
Ending balance | $ 8,992 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Income Tax [Line Items] | |||
Effective income tax expense (benefit) rate | (21.20%) | 18.00% | |
Alternative minimum tax credit carry forward | $ 5.5 | $ 11 | |
Tax credit carryforwards, alternative minimum tax, amount of refund filed under CARES Act | 5.5 | ||
Net operating loss carryforwards | 22.9 | 21.9 | |
Section 163(j) carryforward | 9 | $ 9 | |
Alternative Minimum Tax Credits | |||
Income Tax [Line Items] | |||
Income tax refunds received | $ 5.5 | ||
UNITED STATES | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 21.00% | ||
BERMUDA | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 0.00% | ||
CAYMAN ISLANDS | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 0.00% | ||
UNITED KINGDOM | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 19.00% | ||
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% |
Income (Loss) Before Income Tax
Income (Loss) Before Income Taxes from its Non-U.S. Subsidiaries and U.S. Subsidiaries (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Gross written premiums | $ 155,724 | $ 142,201 |
Net written premiums | 139,112 | 123,416 |
Net earned premiums | 144,468 | 122,089 |
Net investment income | 10,129 | 7,219 |
Net realized investment gains (losses) | (68,162) | 10,390 |
Other income (loss) | 165 | 488 |
Total revenues | 86,600 | 140,186 |
Losses and Expenses: | ||
Net losses and loss adjustment expenses | 77,647 | 58,321 |
Acquisition costs and other underwriting expenses | 56,412 | 49,743 |
Corporate and other operating expenses | 4,223 | 3,205 |
Interest expense | 4,865 | 5,023 |
Income (loss) before income taxes | (56,547) | 23,894 |
Non-U.S. Subsidiaries | ||
Revenues: | ||
Gross written premiums | 17,517 | 17,549 |
Net written premiums | 17,517 | 17,542 |
Net earned premiums | 23,855 | 14,707 |
Net investment income | 6,376 | 4,370 |
Net realized investment gains (losses) | (3,710) | (892) |
Other income (loss) | (318) | 15 |
Total revenues | 26,203 | 18,200 |
Losses and Expenses: | ||
Net losses and loss adjustment expenses | 12,562 | 4,980 |
Acquisition costs and other underwriting expenses | 8,549 | 4,995 |
Corporate and other operating expenses | 1,127 | 1,527 |
Interest expense | 342 | 353 |
Income (loss) before income taxes | 3,623 | 6,345 |
U.S. Subsidiaries | ||
Revenues: | ||
Gross written premiums | 138,207 | 124,652 |
Net written premiums | 121,595 | 105,874 |
Net earned premiums | 120,613 | 107,382 |
Net investment income | 7,250 | 3,136 |
Net realized investment gains (losses) | (64,452) | 11,282 |
Other income (loss) | 483 | 473 |
Total revenues | 63,894 | 122,273 |
Losses and Expenses: | ||
Net losses and loss adjustment expenses | 65,085 | 53,341 |
Acquisition costs and other underwriting expenses | 47,863 | 44,748 |
Corporate and other operating expenses | 3,096 | 1,678 |
Interest expense | 8,020 | 4,957 |
Income (loss) before income taxes | (60,170) | 17,549 |
Eliminations | ||
Revenues: | ||
Gross written premiums | 0 | 0 |
Net written premiums | 0 | 0 |
Net earned premiums | 0 | 0 |
Net investment income | (3,497) | (287) |
Net realized investment gains (losses) | 0 | 0 |
Other income (loss) | 0 | 0 |
Total revenues | (3,497) | (287) |
Losses and Expenses: | ||
Net losses and loss adjustment expenses | 0 | 0 |
Acquisition costs and other underwriting expenses | 0 | 0 |
Corporate and other operating expenses | 0 | 0 |
Interest expense | (3,497) | (287) |
Income (loss) before income taxes | $ 0 | $ 0 |
Components of Income Tax Expens
Components of Income Tax Expenses (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Current income tax expense: | ||
Foreign | $ 0 | $ 46 |
U.S. Federal | 0 | 0 |
Total current income tax expense | 0 | 46 |
Deferred income tax expense (benefit): | ||
U.S. Federal | (11,969) | 4,248 |
Total deferred income tax expense (benefit) | (11,969) | 4,248 |
Total income tax expense (benefit) | $ (11,969) | $ 4,294 |
Differences in Tax Provision fo
Differences in Tax Provision for Financial Statement Purposes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Expected tax provision at weighted average tax rate | $ (12,635) | $ 3,732 |
Adjustments: | ||
Tax exempt interest | (1) | (1) |
Dividend exclusion | (71) | (77) |
Non-deductible interest | 679 | 680 |
Other | 59 | (40) |
Total income tax expense (benefit) | $ (11,969) | $ 4,294 |
Expected tax provision at weighted average | (22.30%) | 15.60% |
Adjustments: | ||
Tax exempt interest, % of Pre-Tax Income | (0.00%) | (0.00%) |
Dividend exclusion, % of Pre-Tax Income | (0.10%) | (0.30%) |
Non-deductible interest, % of Pre-Tax Income | 1.10% | 2.80% |
Other, % of Pre-Tax Income | 0.10% | (0.10%) |
Effective income tax expense (benefit) | (21.20%) | 18.00% |
Summarized Activity in Liabilit
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Insurance [Abstract] | ||
Balance at beginning of period | $ 630,181 | $ 680,031 |
Less: Ceded reinsurance receivables | 76,273 | 109,342 |
Net balance at beginning of period | 553,908 | 570,689 |
Incurred losses and loss adjustment expenses related to: | ||
Current year | 78,247 | 66,251 |
Prior years | (600) | (7,930) |
Total incurred losses and loss adjustment expenses | 77,647 | 58,321 |
Paid losses and loss adjustment expenses related to: | ||
Current year | 22,034 | 18,340 |
Prior years | 48,806 | 61,776 |
Total paid losses and loss adjustment expenses | 70,840 | 80,116 |
Net balance at end of period | 560,715 | 548,894 |
Plus: Ceded reinsurance receivables | 78,753 | 97,065 |
Balance at end of period | $ 639,468 | $ 645,959 |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | $ (600) | $ (7,930) |
Reinsurance Operations | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | (600) | (100) |
Reinsurance Operations | Property Lines | Accident Years 2014 through 2019 | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | (600) | |
Reinsurance Operations | Property Lines | Accident Years 2013 and 2015 through 2018 | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | (100) | |
Commercial Specialty | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | (6,700) | |
Commercial Specialty | General Liability | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | (5,000) | |
Commercial Specialty | General Liability | Accident Years 2012 through 2019 | Maximum | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | 300 | |
Commercial Specialty | General Liability | Accident Years 2004 through 2018 | Construction Defect | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | (500) | |
Commercial Specialty | General Liability | Accident Years 2005 through 2017 | Other General Liability | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | (4,500) | |
Commercial Specialty | Workers Compensation | Accident Years 2012 and Accident Years Prior to 2005 | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | (200) | |
Commercial Specialty | Property Lines | Accident Years 2016, 2018 and 2019 | Maximum | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | (100) | |
Commercial Specialty | Property Lines | Accident Years 2010 and 2012 through 2018 | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | (1,000) | |
Commercial Specialty | Commercial Auto Liability | Accident Years 2000 through 2002, 2010, 2012 and 2013 | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | (800) | |
Specialty Property | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | 900 | |
Specialty Property | General Liability | Accident Years 2015, 2016 and 2019 | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | (400) | |
Specialty Property | Property Lines | Accident Years 2018 and 2019 | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | $ 400 | |
Specialty Property | Property Lines | Accident Years 2015 through 2018 | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | 800 | |
Farm, Ranch & Stable | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | (2,100) | |
Farm, Ranch & Stable | Property Lines | Accidental Years 2017 and 2018 | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | (400) | |
Farm, Ranch & Stable | Liability Lines | Accident Years 2013 through 2017 | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Changes in prior year reserve | $ (1,700) |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2020 |
Lessee Lease Description [Line Item] | ||
Operating lease, existence of option to terminate [true false] | true | |
Operating lease, existence of option to extend [true false] | true | |
Operating lease, existence of option to retract [true false] | true | |
Maximum | ||
Lessee Lease Description [Line Item] | ||
Operating lease, remaining lease term | 10 years | |
Maximum | ASU 2016-02 | ||
Lessee Lease Description [Line Item] | ||
Cumulative effect adjustment on retained earnings | $ 0.1 | |
Minimum | ||
Lessee Lease Description [Line Item] | ||
Operating lease, remaining lease term | 5 months |
Components of Lease Expenses (D
Components of Lease Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease expenses | $ 748 | $ 819 |
Short-term lease expenses | 2 | 3 |
Total lease expenses | $ 750 | $ 822 |
Schedule of Supplemental Cash F
Schedule of Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of liabilities: | ||
Operating leases | $ 395 | $ 574 |
Right-of-use assets obtained in exchange for new lease obligations: | ||
Operating leases | $ 0 | $ 14,897 |
Schedule of Supplemental Balanc
Schedule of Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Assets: | |||
Operating lease assets | $ 22,071 | $ 22,761 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets | |
Liabilities: | |||
Operating lease liabilities | $ 23,345 | $ 23,539 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities | |
Weighted-average remaining lease term: | |||
Operating leases | 9 years 6 months | 10 years 2 months 12 days | |
Weighted-average discount rate: | |||
Operating leases | [1] | 2.70% | 2.70% |
[1] | Represents the Company’s incremental borrowing rate |
Future Minimum Lease Payments U
Future Minimum Lease Payments Under Non-cancelable Operating Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
2020 | [1] | $ 1,579 | |
2021 | 2,779 | ||
2022 | 2,659 | ||
2023 | 2,702 | ||
2024 | 2,746 | ||
Thereafter | 14,142 | ||
Total future minimum lease payments | 26,607 | ||
Less: amount representing interest | 3,262 | ||
Present value of minimum lease payments | $ 23,345 | $ 23,539 | |
[1] | Excludes the quarter ended March 31, 2020 |
Information with Respect to A O
Information with Respect to A Ordinary Shares that were Surrendered or Repurchased (Detail) - Ordinary Shares A - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased | 4,724 | 27,028 | |
Average Price Paid Per Share | $ 30.14 | $ 35.07 | |
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, 2020 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased | [1],[2] | 3,124 | |
Average Price Paid Per Share | [1] | $ 29.63 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1] | $ 0 | |
February 1-29, 2020 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased | [1],[2] | 1,600 | |
Average Price Paid Per Share | [1] | $ 31.13 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1] | $ 0 | |
January 1-31, 2019 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased | [1],[2] | 7,945 | |
Average Price Paid Per Share | [1] | $ 36.23 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1] | $ 0 | |
February 1-28, 2019 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased | [1],[2] | 19,083 | |
Average Price Paid Per Share | [1] | $ 34.59 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1] | $ 0 | |
[1] | Based on settlement date. | ||
[2] | Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($)Stockholder$ / sharesshares | Mar. 31, 2019$ / sharesshares | Dec. 31, 2019USD ($) | |
Equity [Line Items] | |||
Dividend payable, per share | $ / shares | $ 0.25 | $ 0.25 | |
Accrued dividends | $ | $ 0.4 | $ 0.1 | |
Ordinary Shares B | |||
Equity [Line Items] | |||
Shares repurchased | shares | 0 | 0 | |
Number of shareholders | Stockholder | 4 | ||
Ordinary Shares A | |||
Equity [Line Items] | |||
Shares repurchased | shares | 4,724 | 27,028 | |
Number of shareholders | Stockholder | 215 |
Schedule of Dividends Declared
Schedule of Dividends Declared (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Feb. 09, 2020 | Mar. 29, 2019 | Feb. 10, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Dividends Payable [Line Items] | |||||||
Approval Date | Feb. 9, 2020 | Feb. 10, 2019 | |||||
Record Date | Mar. 24, 2020 | Mar. 22, 2019 | |||||
Payment Date | Mar. 31, 2020 | Mar. 29, 2019 | |||||
Payment of dividends | $ 3,539 | $ 3,521 | $ 3,641 | $ 3,551 | |||
Unvested Shares, Net of Forfeitures | |||||||
Dividends Payable [Line Items] | |||||||
Approval Date | Various | Various | |||||
Record Date | Various | Various | |||||
Payment Date | Various | Various | |||||
Payment of dividends | [1] | $ 102 | $ 30 | ||||
[1] | Represents dividends declared on unvested shares, net of forfeitures. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
May 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Fox Paine Funds | ||||
Related Party Transaction [Line Items] | ||||
Company's total voting power | 80.30% | |||
FM Entities | ||||
Related Party Transaction [Line Items] | ||||
Company's total voting power | 2.10% | |||
Fox Paine Entities | ||||
Related Party Transaction [Line Items] | ||||
Minimum voting power required to nominate Directors | 25.00% | |||
Fox Paine and Company | ||||
Related Party Transaction [Line Items] | ||||
Management fees | $ 0.5 | $ 0.5 | ||
Prepaid management fees | $ 0.9 | $ 1.4 | ||
Advisory services fees estimated | $ 2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2014 |
Commitments and Contingencies [Line Items] | ||||
Commitment to purchase alternative investment | $ 10,000 | $ 50,000 | $ 50,000 | |
Future Funding Commitments | $ 31,720 | $ 31,720 | ||
European Non-Performing Loan Fund, LP | ||||
Commitments and Contingencies [Line Items] | ||||
Funded commitment amount | 35,800 | |||
Distressed Debt Fund, LP | ||||
Commitments and Contingencies [Line Items] | ||||
Funded commitment amount | 33,000 | |||
Mortgage Loans and Other Real-Estate Related Investments | ||||
Commitments and Contingencies [Line Items] | ||||
Funded commitment amount | 9,500 | |||
Unfunded Commitments | European Non-Performing Loan Fund, LP | ||||
Commitments and Contingencies [Line Items] | ||||
Future Funding Commitments | 14,200 | |||
Unfunded Commitments | Distressed Debt Fund, LP | ||||
Commitments and Contingencies [Line Items] | ||||
Future Funding Commitments | 17,000 | |||
Unfunded Commitments | Mortgage Loans and Other Real-Estate Related Investments | ||||
Commitments and Contingencies [Line Items] | ||||
Future Funding Commitments | $ 500 |
Share-Based Compensation Plans
Share-Based Compensation Plans - Additional Information (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options awarded | 0 | 0 |
Unvested stock options forfeited | 0 | 0 |
Restricted Stock | Key Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares granted | 0 | 36,180 |
Weighted average fair value per share | $ 35.82 | |
Shares vested | 9,063 | |
Restricted Stock | Key Employees | Share-based Payment Arrangement, Tranche 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of shares vested on each anniversary of the grant date | 16.50% | |
Vesting date | Jan. 1, 2020 | |
Restricted Stock | Key Employees | Share-based Compensation Award, Tranche 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of shares vested on each anniversary of the grant date | 16.50% | |
Vesting date | Jan. 1, 2021 | |
Restricted Stock | Key Employees | Share-based Compensation Award, Tranche 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of shares vested on each anniversary of the grant date | 17.00% | |
Vesting date | Jan. 1, 2022 | |
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% | |
Vesting date | Mar. 15, 2022 | |
Percentage of stock award subject to vesting | 50.00% | |
Restricted Stock | Non Employee Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares granted | 23,127 | 15,842 |
Weighted average fair value per share | $ 29.19 | $ 30.38 |
Restricted Stock Units | Key Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares granted | 94,281 | 0 |
Weighted average fair value per share | $ 29.63 | |
Shares vested | 3,375 | |
Vesting year | 3 years | |
Stock options, vested and expected to vest | 90,906 | |
Restricted Stock Units | Key Employees | Share-based Payment Arrangement, Tranche 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of shares vested on each anniversary of the grant date | 16.50% | |
Vesting date | Jan. 1, 2021 | |
Restricted Stock Units | Key Employees | Share-based Compensation Award, Tranche 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of shares vested on each anniversary of the grant date | 16.50% | |
Vesting date | Jan. 1, 2022 | |
Restricted Stock Units | Key Employees | Share-based Compensation Award, Tranche 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of shares vested on each anniversary of the grant date | 17.00% | |
Vesting date | Jan. 1, 2023 | |
Restricted Stock Units | 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% | |
Vesting date | Mar. 15, 2023 | |
Percentage of stock award subject to vesting | 50.00% |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Earnings Per Share [Abstract] | |||
Net income (loss) | $ (44,578) | $ 19,600 | |
Weighted average shares outstanding – basic | 14,249,551 | 14,153,918 | |
Net income (loss) per share | [1] | $ (3.13) | $ 1.38 |
Weighted average shares outstanding – diluted | [2] | 14,249,551 | 14,315,091 |
Net income (loss) per share | [1] | $ (3.13) | $ 1.37 |
[1] | For the quarter ended March 31, 2020, weighted average shares outstanding – basic was used to calculate diluted earnings per share due to a net loss for the period. | ||
[2] | For the quarter ended March 31, 2020, weighted average shares outstanding – basic was used to calculate diluted earnings per share due to a net loss for the period. |
Reconciliation of Weighted Aver
Reconciliation of Weighted Average Shares for Basic and Diluted Earnings Per Share (Detail) - shares | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | |||
Weighted average shares for basic earnings per share | 14,249,551 | 14,153,918 | |
Weighted average shares for diluted earnings per share | [1] | 14,249,551 | 14,315,091 |
Restricted Stock | |||
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | |||
Non-vested restricted stock, units and options | 0 | 14,723 | |
Stock Options | |||
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | |||
Non-vested restricted stock, units and options | 0 | 146,450 | |
[1] | For the quarter ended March 31, 2020, weighted average shares outstanding – basic was used to calculate diluted earnings per share due to a net loss for the period. |
Earning Per Share - Additional
Earning Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Incremental shares included in calculation of diluted EPS | 14,417,506 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Shares excluded from calculation of diluted earnings per share | 500,000 | 500,000 |
Restricted Stock Diluted | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Non-vested restricted stock, units and options | 16,298 | |
Restricted Stock Units Diluted | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Non-vested restricted stock, units and options | 29,261 | |
Stock Options Diluted | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Non-vested restricted stock, units and options | 122,396 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments managed | 4 |
Summary of Business Segment Inf
Summary of Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | ||
Revenues: | ||||
Gross written premiums | $ 155,724 | $ 142,201 | ||
Net written premiums | 139,112 | 123,416 | ||
Net earned premiums | 144,468 | 122,089 | ||
Other income (loss) | 168 | 488 | ||
Total revenues | 144,636 | 122,577 | ||
Losses and Expenses: | ||||
Net losses and loss adjustment expenses | 77,647 | 58,321 | ||
Acquisition costs and other underwriting expenses | 56,412 | 49,743 | ||
Income from segments | 10,577 | 14,513 | ||
Unallocated Items: | ||||
Net investment income | 10,129 | 7,219 | ||
Net realized investment gains (losses) | (68,162) | 10,390 | ||
Other income (loss) | (3) | |||
Corporate and other operating expenses | (4,223) | (3,205) | ||
Interest expense | (4,865) | (5,023) | ||
Income (loss) before income taxes | (56,547) | 23,894 | ||
Income tax expense (benefit) | 11,969 | (4,294) | ||
Net income (loss) | (44,578) | 19,600 | ||
Total assets | 2,028,504 | 1,984,908 | $ 2,075,885 | |
Segment Assets | ||||
Unallocated Items: | ||||
Total assets | 1,352,331 | 1,376,558 | ||
Corporate Assets | ||||
Unallocated Items: | ||||
Total assets | 676,173 | 608,350 | ||
Commercial Specialty | ||||
Revenues: | ||||
Gross written premiums | [1] | 80,831 | 64,213 | |
Net written premiums | [1] | 72,483 | 55,170 | |
Net earned premiums | [1] | 67,714 | 55,641 | |
Other income (loss) | [1] | 0 | 0 | |
Total revenues | [1] | 67,714 | 55,641 | |
Losses and Expenses: | ||||
Net losses and loss adjustment expenses | [1] | 37,435 | 21,651 | |
Acquisition costs and other underwriting expenses | [1] | 25,993 | 22,812 | |
Income from segments | [1] | 4,286 | 11,178 | |
Unallocated Items: | ||||
Net investment income | [1] | 0 | 0 | |
Net realized investment gains (losses) | [1] | 0 | 0 | |
Other income (loss) | [1] | 0 | ||
Corporate and other operating expenses | [1] | 0 | 0 | |
Interest expense | [1] | 0 | 0 | |
Income (loss) before income taxes | [1] | 0 | 0 | |
Income tax expense (benefit) | [1] | 0 | 0 | |
Net income (loss) | [1] | 0 | 0 | |
Total assets | [1] | 0 | 0 | |
Commercial Specialty | Segment Assets | ||||
Unallocated Items: | ||||
Total assets | [1] | 730,202 | 684,497 | |
Commercial Specialty | Corporate Assets | ||||
Unallocated Items: | ||||
Total assets | [1] | 0 | 0 | |
Specialty Property | ||||
Revenues: | ||||
Gross written premiums | [1] | 35,243 | 39,674 | |
Net written premiums | [1] | 30,007 | 33,212 | |
Net earned premiums | [1] | 34,216 | 34,619 | |
Other income (loss) | [1] | 427 | 443 | |
Total revenues | [1] | 34,643 | 35,062 | |
Losses and Expenses: | ||||
Net losses and loss adjustment expenses | [1] | 17,498 | 20,503 | |
Acquisition costs and other underwriting expenses | [1] | 14,232 | 14,653 | |
Income from segments | [1] | 2,913 | (94) | |
Unallocated Items: | ||||
Net investment income | [1] | 0 | 0 | |
Net realized investment gains (losses) | [1] | 0 | 0 | |
Other income (loss) | [1] | 0 | ||
Corporate and other operating expenses | [1] | 0 | 0 | |
Interest expense | [1] | 0 | 0 | |
Income (loss) before income taxes | [1] | 0 | 0 | |
Income tax expense (benefit) | [1] | 0 | 0 | |
Net income (loss) | [1] | 0 | 0 | |
Total assets | [1] | 0 | 0 | |
Specialty Property | Segment Assets | ||||
Unallocated Items: | ||||
Total assets | [1] | 209,758 | 242,519 | |
Specialty Property | Corporate Assets | ||||
Unallocated Items: | ||||
Total assets | [1] | 0 | 0 | |
Farm, Ranch & Stable | ||||
Revenues: | ||||
Gross written premiums | [1] | 22,133 | 20,765 | |
Net written premiums | [1] | 19,105 | 17,492 | |
Net earned premiums | [1] | 18,683 | 17,122 | |
Other income (loss) | [1] | 36 | 30 | |
Total revenues | [1] | 18,719 | 17,152 | |
Losses and Expenses: | ||||
Net losses and loss adjustment expenses | [1] | 9,610 | 8,138 | |
Acquisition costs and other underwriting expenses | [1] | 7,638 | 7,282 | |
Income from segments | [1] | 1,471 | 1,732 | |
Unallocated Items: | ||||
Net investment income | [1] | 0 | 0 | |
Net realized investment gains (losses) | [1] | 0 | 0 | |
Other income (loss) | [1] | 0 | ||
Corporate and other operating expenses | [1] | 0 | 0 | |
Interest expense | [1] | 0 | 0 | |
Income (loss) before income taxes | [1] | 0 | 0 | |
Income tax expense (benefit) | [1] | 0 | 0 | |
Net income (loss) | [1] | 0 | 0 | |
Total assets | [1] | 0 | 0 | |
Farm, Ranch & Stable | Segment Assets | ||||
Unallocated Items: | ||||
Total assets | [1] | 135,731 | 135,727 | |
Farm, Ranch & Stable | Corporate Assets | ||||
Unallocated Items: | ||||
Total assets | [1] | 0 | 0 | |
Reinsurance Operations | ||||
Revenues: | ||||
Gross written premiums | [2] | 17,517 | 17,549 | |
Net written premiums | [2] | 17,517 | 17,542 | |
Net earned premiums | [2] | 23,855 | 14,707 | |
Other income (loss) | [2] | (295) | 15 | |
Total revenues | [2] | 23,560 | 14,722 | |
Losses and Expenses: | ||||
Net losses and loss adjustment expenses | [2] | 13,104 | 8,029 | |
Acquisition costs and other underwriting expenses | [2] | 8,549 | 4,996 | |
Income from segments | [2] | 1,907 | 1,697 | |
Unallocated Items: | ||||
Net investment income | [2] | 0 | 0 | |
Net realized investment gains (losses) | [2] | 0 | 0 | |
Other income (loss) | [2] | 0 | ||
Corporate and other operating expenses | [2] | 0 | 0 | |
Interest expense | [2] | 0 | 0 | |
Income (loss) before income taxes | [2] | 0 | 0 | |
Income tax expense (benefit) | [2] | 0 | 0 | |
Net income (loss) | [2] | 0 | 0 | |
Total assets | [2] | 0 | 0 | |
Reinsurance Operations | Segment Assets | ||||
Unallocated Items: | ||||
Total assets | [2] | 276,640 | 313,815 | |
Reinsurance Operations | Corporate Assets | ||||
Unallocated Items: | ||||
Total assets | [2] | $ 0 | $ 0 | |
[1] | Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018. | |||
[2] | External business only, excluding business assumed from affiliates. |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020 | |
Global Indemnity Group, LLC | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage in subsidiary | 100.00% |
Schedule of Condensed Consolida
Schedule of Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||||
Total investments | $ 1,493,400 | $ 1,563,542 | |||
Cash and cash equivalents | 59,751 | 44,271 | $ 37,874 | $ 99,497 | |
Investments in subsidiaries | 0 | 0 | |||
Due from subsidiaries and affiliates | 0 | 0 | |||
Notes receivable – affiliate | 0 | 0 | |||
Interest receivable – affiliate | 0 | 0 | |||
Premiums receivable, net | 115,331 | 118,035 | |||
Reinsurance receivables, net | 83,074 | 83,938 | |||
Funds held by ceding insurers | 47,096 | 48,580 | |||
Federal income taxes receivable | 5,510 | 10,989 | |||
Deferred federal income taxes | 42,117 | 31,077 | |||
Deferred acquisition costs | 69,615 | 70,677 | |||
Intangible assets | 21,359 | 21,491 | |||
Goodwill | 6,521 | 6,521 | |||
Prepaid reinsurance premiums | 15,512 | 16,716 | |||
Receivable for securities sold | 0 | ||||
Other assets | 69,218 | 60,048 | |||
Total assets | 2,028,504 | 2,075,885 | 1,984,908 | ||
Liabilities: | |||||
Unpaid losses and loss adjustment expenses | 639,468 | 630,181 | 645,959 | 680,031 | |
Unearned premiums | 308,301 | 314,861 | |||
Ceded balances payable | 23,932 | 20,404 | |||
Payable for securities purchased | 2,585 | 850 | |||
Contingent commissions | 5,841 | 11,928 | |||
Debt | 294,784 | 296,640 | |||
Notes payable – affiliates | 0 | 0 | |||
Accrued interest payable – affiliates | 0 | 0 | |||
Other liabilities | 78,957 | 74,212 | |||
Total liabilities | 1,353,868 | 1,349,076 | |||
Shareholders’ equity | |||||
Total shareholders’ equity | 674,636 | 726,809 | 667,655 | ||
Total liabilities and shareholders’ equity | 2,028,504 | 2,075,885 | |||
Global Indemnity Limited (Parent co-obligor) | Reportable Legal Entities | |||||
ASSETS | |||||
Total investments | 32,865 | 44,468 | |||
Cash and cash equivalents | 635 | 977 | 366 | 2,221 | |
Investments in subsidiaries | 1,175,117 | 1,218,491 | |||
Due from subsidiaries and affiliates | 559 | (3,612) | |||
Notes receivable – affiliate | 0 | 0 | |||
Interest receivable – affiliate | 0 | 0 | |||
Premiums receivable, net | 0 | 0 | |||
Reinsurance receivables, net | 0 | 0 | |||
Funds held by ceding insurers | 0 | 0 | |||
Federal income taxes receivable | 0 | 0 | |||
Deferred federal income taxes | 0 | 0 | |||
Deferred acquisition costs | 0 | 0 | |||
Intangible assets | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Prepaid reinsurance premiums | 0 | 0 | |||
Receivable for securities sold | 0 | ||||
Other assets | 8,598 | 9,394 | |||
Total assets | 1,217,774 | 1,269,718 | |||
Liabilities: | |||||
Unpaid losses and loss adjustment expenses | 0 | 0 | |||
Unearned premiums | 0 | 0 | |||
Ceded balances payable | 0 | 0 | |||
Payable for securities purchased | 0 | 0 | |||
Contingent commissions | 0 | 0 | |||
Debt | 0 | 0 | |||
Notes payable – affiliates | 520,498 | 520,498 | |||
Accrued interest payable – affiliates | 20,554 | 20,343 | |||
Other liabilities | 2,086 | 2,068 | |||
Total liabilities | 543,138 | 542,909 | |||
Shareholders’ equity | |||||
Total shareholders’ equity | 674,636 | 726,809 | |||
Total liabilities and shareholders’ equity | 1,217,774 | 1,269,718 | |||
Global Indemnity Group, LLC (Subsidiary co-obligor) | Reportable Legal Entities | |||||
ASSETS | |||||
Total investments | 209,656 | 257,317 | |||
Cash and cash equivalents | 10,697 | 2,663 | 656 | 26,039 | |
Investments in subsidiaries | 368,560 | 355,777 | |||
Due from subsidiaries and affiliates | (27,056) | (3,965) | |||
Notes receivable – affiliate | 80,049 | 80,049 | |||
Interest receivable – affiliate | 5,290 | 5,014 | |||
Premiums receivable, net | 0 | 0 | |||
Reinsurance receivables, net | 0 | 0 | |||
Funds held by ceding insurers | 0 | 0 | |||
Federal income taxes receivable | 7,064 | 14,197 | |||
Deferred federal income taxes | 43,334 | 31,833 | |||
Deferred acquisition costs | 0 | 0 | |||
Intangible assets | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Prepaid reinsurance premiums | 0 | 0 | |||
Receivable for securities sold | 48 | ||||
Other assets | 22,243 | 12,622 | |||
Total assets | 719,885 | 755,507 | |||
Liabilities: | |||||
Unpaid losses and loss adjustment expenses | 0 | 0 | |||
Unearned premiums | 0 | 0 | |||
Ceded balances payable | 0 | 0 | |||
Payable for securities purchased | 0 | 0 | |||
Contingent commissions | 0 | 0 | |||
Debt | 301,707 | 303,629 | |||
Notes payable – affiliates | 0 | 0 | |||
Accrued interest payable – affiliates | 0 | 0 | |||
Other liabilities | 26,052 | 17,600 | |||
Total liabilities | 327,759 | 321,229 | |||
Shareholders’ equity | |||||
Total shareholders’ equity | 392,126 | 434,278 | |||
Total liabilities and shareholders’ equity | 719,885 | 755,507 | |||
Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) | |||||
ASSETS | |||||
Total investments | [1] | 1,250,879 | 1,261,757 | ||
Cash and cash equivalents | [1] | 48,419 | 40,631 | $ 36,852 | $ 71,237 |
Investments in subsidiaries | [1] | 392,126 | 434,278 | ||
Due from subsidiaries and affiliates | [1] | 26,497 | 7,577 | ||
Notes receivable – affiliate | [1] | 445,498 | 445,498 | ||
Interest receivable – affiliate | [1] | 17,259 | 17,258 | ||
Premiums receivable, net | [1] | 115,331 | 118,035 | ||
Reinsurance receivables, net | [1] | 83,074 | 83,938 | ||
Funds held by ceding insurers | [1] | 47,096 | 48,580 | ||
Federal income taxes receivable | [1] | (1,554) | (3,208) | ||
Deferred federal income taxes | [1] | (1,217) | (756) | ||
Deferred acquisition costs | [1] | 69,615 | 70,677 | ||
Intangible assets | [1] | 21,359 | 21,491 | ||
Goodwill | [1] | 6,521 | 6,521 | ||
Prepaid reinsurance premiums | [1] | 15,512 | 16,716 | ||
Receivable for securities sold | [1] | (48) | |||
Other assets | [1] | 45,300 | 45,021 | ||
Total assets | [1] | 2,581,667 | 2,614,014 | ||
Liabilities: | |||||
Unpaid losses and loss adjustment expenses | [1] | 639,468 | 630,181 | ||
Unearned premiums | [1] | 308,301 | 314,861 | ||
Ceded balances payable | [1] | 23,932 | 20,404 | ||
Payable for securities purchased | [1] | 2,585 | 850 | ||
Contingent commissions | [1] | 5,841 | 11,928 | ||
Debt | [1] | 0 | 0 | ||
Notes payable – affiliates | [1] | 5,049 | 5,049 | ||
Accrued interest payable – affiliates | [1] | 1,995 | 1,929 | ||
Other liabilities | [1] | 50,819 | 54,544 | ||
Total liabilities | [1] | 1,037,990 | 1,039,746 | ||
Shareholders’ equity | |||||
Total shareholders’ equity | [1] | 1,543,677 | 1,574,268 | ||
Total liabilities and shareholders’ equity | [1] | 2,581,667 | 2,614,014 | ||
Consolidation Adjustments | |||||
ASSETS | |||||
Total investments | [2] | 0 | 0 | ||
Cash and cash equivalents | [2] | 0 | 0 | ||
Investments in subsidiaries | [2] | (1,935,803) | (2,008,546) | ||
Due from subsidiaries and affiliates | [2] | 0 | 0 | ||
Notes receivable – affiliate | [2] | (525,547) | (525,547) | ||
Interest receivable – affiliate | [2] | (22,549) | (22,272) | ||
Premiums receivable, net | [2] | 0 | 0 | ||
Reinsurance receivables, net | [2] | 0 | 0 | ||
Funds held by ceding insurers | [2] | 0 | 0 | ||
Federal income taxes receivable | [2] | 0 | 0 | ||
Deferred federal income taxes | [2] | 0 | 0 | ||
Deferred acquisition costs | [2] | 0 | 0 | ||
Intangible assets | [2] | 0 | 0 | ||
Goodwill | [2] | 0 | 0 | ||
Prepaid reinsurance premiums | [2] | 0 | 0 | ||
Receivable for securities sold | [2] | 0 | |||
Other assets | [2] | (6,923) | (6,989) | ||
Total assets | [2] | (2,490,822) | (2,563,354) | ||
Liabilities: | |||||
Unpaid losses and loss adjustment expenses | [2] | 0 | 0 | ||
Unearned premiums | [2] | 0 | 0 | ||
Ceded balances payable | [2] | 0 | 0 | ||
Payable for securities purchased | [2] | 0 | 0 | ||
Contingent commissions | [2] | 0 | 0 | ||
Debt | [2] | (6,923) | (6,989) | ||
Notes payable – affiliates | [2] | (525,547) | (525,547) | ||
Accrued interest payable – affiliates | [2] | (22,549) | (22,272) | ||
Other liabilities | [2] | 0 | 0 | ||
Total liabilities | [2] | (555,019) | (554,808) | ||
Shareholders’ equity | |||||
Total shareholders’ equity | [2] | (1,935,803) | (2,008,546) | ||
Total liabilities and shareholders’ equity | [2] | $ (2,490,822) | $ (2,563,354) | ||
[1] | Includes all other subsidiaries of Global Indemnity Limited and eliminations | ||||
[2] | Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments |
Schedule of Condensed Consoli_2
Schedule of Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Revenues: | |||
Net earned premiums | $ 144,468 | $ 122,089 | |
Net investment income | 10,129 | 7,219 | |
Net realized investment gains (losses) | (68,162) | 10,390 | |
Other income | 165 | 488 | |
Total revenues | 86,600 | 140,186 | |
Losses and Expenses: | |||
Net losses and loss adjustment expenses | 77,647 | 58,321 | |
Acquisition costs and other underwriting expenses | 56,412 | 49,743 | |
Corporate and other operating expenses | 4,223 | 3,205 | |
Interest expense | 4,865 | 5,023 | |
Income (loss) before income taxes | (56,547) | 23,894 | |
Equity in net income (loss) of subsidiaries | 0 | 0 | |
Income (loss) before income taxes | (56,547) | 23,894 | |
Income tax expense (benefit) | (11,969) | 4,294 | |
Net income (loss) | (44,578) | 19,600 | |
Global Indemnity Limited (Parent co-obligor) | Reportable Legal Entities | |||
Revenues: | |||
Net earned premiums | 0 | 0 | |
Net investment income | (202) | 642 | |
Net realized investment gains (losses) | (4,603) | (7) | |
Other income | 0 | 0 | |
Total revenues | (4,805) | 635 | |
Losses and Expenses: | |||
Net losses and loss adjustment expenses | 0 | 0 | |
Acquisition costs and other underwriting expenses | 0 | 0 | |
Corporate and other operating expenses | 1,173 | 1,329 | |
Interest expense | 276 | 274 | |
Income (loss) before income taxes | (6,254) | (968) | |
Equity in net income (loss) of subsidiaries | (38,324) | 20,568 | |
Income (loss) before income taxes | (44,578) | 19,600 | |
Income tax expense (benefit) | 0 | 0 | |
Net income (loss) | (44,578) | 19,600 | |
Global Indemnity Group, LLC (Subsidiary co-obligor) | Reportable Legal Entities | |||
Revenues: | |||
Net earned premiums | 0 | 0 | |
Net investment income | 2,071 | (2,075) | |
Net realized investment gains (losses) | (64,191) | 12,076 | |
Other income | 19 | 28 | |
Total revenues | (62,101) | 10,029 | |
Losses and Expenses: | |||
Net losses and loss adjustment expenses | 0 | 0 | |
Acquisition costs and other underwriting expenses | 0 | 0 | |
Corporate and other operating expenses | 2,954 | 1,566 | |
Interest expense | 4,799 | 4,957 | |
Income (loss) before income taxes | (69,854) | 3,506 | |
Equity in net income (loss) of subsidiaries | 10,138 | 7,893 | |
Income (loss) before income taxes | (59,716) | 11,399 | |
Income tax expense (benefit) | (14,063) | 1,340 | |
Net income (loss) | (45,653) | 10,059 | |
Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) | |||
Revenues: | |||
Net earned premiums | [1] | 144,468 | 122,089 |
Net investment income | [1] | 8,537 | 8,939 |
Net realized investment gains (losses) | [1] | 632 | (1,679) |
Other income | [1] | 146 | 460 |
Total revenues | [1] | 153,783 | 129,809 |
Losses and Expenses: | |||
Net losses and loss adjustment expenses | [1] | 77,647 | 58,321 |
Acquisition costs and other underwriting expenses | [1] | 56,412 | 49,743 |
Corporate and other operating expenses | [1] | 96 | 310 |
Interest expense | [1] | 67 | 79 |
Income (loss) before income taxes | [1] | 19,561 | 21,356 |
Equity in net income (loss) of subsidiaries | [1] | (45,653) | 10,059 |
Income (loss) before income taxes | [1] | (26,092) | 31,415 |
Income tax expense (benefit) | [1] | 2,094 | 2,954 |
Net income (loss) | [1] | (28,186) | 28,461 |
Consolidation Adjustments | |||
Revenues: | |||
Net earned premiums | [2] | 0 | 0 |
Net investment income | [2] | (277) | (287) |
Net realized investment gains (losses) | [2] | 0 | 0 |
Other income | [2] | 0 | 0 |
Total revenues | [2] | (277) | (287) |
Losses and Expenses: | |||
Net losses and loss adjustment expenses | [2] | 0 | 0 |
Acquisition costs and other underwriting expenses | [2] | 0 | 0 |
Corporate and other operating expenses | [2] | 0 | 0 |
Interest expense | [2] | (277) | (287) |
Income (loss) before income taxes | [2] | 0 | 0 |
Equity in net income (loss) of subsidiaries | [2] | 73,839 | (38,520) |
Income (loss) before income taxes | [2] | 73,839 | (38,520) |
Income tax expense (benefit) | [2] | 0 | 0 |
Net income (loss) | [2] | $ 73,839 | $ (38,520) |
[1] | Includes all other subsidiaries of Global Indemnity Limited and eliminations | ||
[2] | Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments |
Schedule of Condensed Consoli_3
Schedule of Condensed Consolidating Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Condensed Financial Statements, Captions [Line Items] | |||
Net income (loss) | $ (44,578) | $ 19,600 | |
Other comprehensive income (loss), net of tax: | |||
Unrealized holding gains (losses) | (2,032) | 20,785 | |
Equity in other comprehensive income of unconsolidated subsidiaries | 0 | 0 | |
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | 0 | (1) | |
Reclassification adjustment for gains included in net income | (1,714) | 1,922 | |
Unrealized foreign currency translation gain (loss) | (1,303) | 194 | |
Other comprehensive income (loss), net of tax | (5,049) | 22,900 | |
Comprehensive income (loss), net of tax | (49,627) | 42,500 | |
Global Indemnity Limited (Parent co-obligor) | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income (loss) | (44,578) | 19,600 | |
Other comprehensive income (loss), net of tax: | |||
Unrealized holding gains (losses) | 0 | 659 | |
Equity in other comprehensive income of unconsolidated subsidiaries | (5,049) | 22,234 | |
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | 0 | 0 | |
Reclassification adjustment for gains included in net income | 0 | 7 | |
Unrealized foreign currency translation gain (loss) | 0 | 0 | |
Other comprehensive income (loss), net of tax | (5,049) | 22,900 | |
Comprehensive income (loss), net of tax | (49,627) | 42,500 | |
Global Indemnity Group, LLC (Subsidiary co-obligor) | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income (loss) | (45,653) | 10,059 | |
Other comprehensive income (loss), net of tax: | |||
Unrealized holding gains (losses) | 856 | 2,047 | |
Equity in other comprehensive income of unconsolidated subsidiaries | 2,645 | 10,325 | |
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | 0 | 0 | |
Reclassification adjustment for gains included in net income | 0 | 402 | |
Unrealized foreign currency translation gain (loss) | 0 | 0 | |
Other comprehensive income (loss), net of tax | 3,501 | 12,774 | |
Comprehensive income (loss), net of tax | (42,152) | 22,833 | |
Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income (loss) | [1] | (28,186) | 28,461 |
Other comprehensive income (loss), net of tax: | |||
Unrealized holding gains (losses) | [1] | (2,888) | 18,079 |
Equity in other comprehensive income of unconsolidated subsidiaries | [1] | 3,501 | 12,774 |
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | [1] | 0 | (1) |
Reclassification adjustment for gains included in net income | [1] | (1,714) | 1,513 |
Unrealized foreign currency translation gain (loss) | [1] | (1,303) | 194 |
Other comprehensive income (loss), net of tax | [1] | (2,404) | 32,559 |
Comprehensive income (loss), net of tax | [1] | (30,590) | 61,020 |
Consolidation Adjustments | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income (loss) | [2] | 73,839 | (38,520) |
Other comprehensive income (loss), net of tax: | |||
Unrealized holding gains (losses) | [2] | 0 | 0 |
Equity in other comprehensive income of unconsolidated subsidiaries | [2] | (1,097) | (45,333) |
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | [2] | 0 | 0 |
Reclassification adjustment for gains included in net income | [2] | 0 | 0 |
Unrealized foreign currency translation gain (loss) | [2] | 0 | 0 |
Other comprehensive income (loss), net of tax | [2] | (1,097) | (45,333) |
Comprehensive income (loss), net of tax | [2] | $ 72,742 | $ (83,853) |
[1] | Includes all other subsidiaries of Global Indemnity Limited and eliminations | ||
[2] | Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments |
Schedule of Condensed Consoli_4
Schedule of Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Cash flows from operating activities: | |||
Net cash provided by (used for) operating activities | $ 20,784 | $ (23,190) | |
Cash flows from investing activities: | |||
Proceeds from sale of fixed maturities | 124,070 | 61,258 | |
Proceeds from sale of equity securities | 49,546 | 15,354 | |
Proceeds from maturity of fixed maturities | 13,259 | 19,352 | |
Proceeds from other invested assets | 682 | 1,445 | |
Amounts paid in connection with derivatives | (20,007) | (3,735) | |
Purchases of fixed maturities | (156,424) | (112,024) | |
Purchases of equity securities | (10,810) | (17,989) | |
Purchases of other invested assets | 0 | (3,500) | |
Net cash provided by (used for) investing activities | 316 | (39,839) | |
Cash flows from financing activities: | |||
Net borrowings (repayments) under margin borrowing facility | (1,922) | 5,950 | |
Dividends paid to shareholders | (3,555) | (3,595) | |
Purchase of A ordinary shares | (143) | (949) | |
Net cash provided by (used for) financing activities | (5,620) | 1,406 | |
Net change in cash and cash equivalents | 15,480 | (61,623) | |
Cash and cash equivalents at beginning of period | 44,271 | 99,497 | |
Cash and cash equivalents at end of period | 59,751 | 37,874 | |
Global Indemnity Limited (Parent co-obligor) | Reportable Legal Entities | |||
Cash flows from operating activities: | |||
Net cash provided by (used for) operating activities | (3,644) | 2,225 | |
Cash flows from investing activities: | |||
Proceeds from sale of fixed maturities | 0 | 9,567 | |
Proceeds from sale of equity securities | 7,566 | 0 | |
Proceeds from maturity of fixed maturities | 0 | 0 | |
Proceeds from other invested assets | 1,020 | 1,445 | |
Amounts paid in connection with derivatives | 0 | 0 | |
Purchases of fixed maturities | 0 | (10,548) | |
Purchases of equity securities | (1,586) | 0 | |
Purchases of other invested assets | 0 | 0 | |
Net cash provided by (used for) investing activities | 7,000 | 464 | |
Cash flows from financing activities: | |||
Net borrowings (repayments) under margin borrowing facility | 0 | 0 | |
Dividends paid to shareholders | (3,555) | (3,595) | |
Purchase of A ordinary shares | (143) | (949) | |
Net cash provided by (used for) financing activities | (3,698) | (4,544) | |
Net change in cash and cash equivalents | (342) | (1,855) | |
Cash and cash equivalents at beginning of period | 977 | 2,221 | |
Cash and cash equivalents at end of period | 635 | 366 | |
Global Indemnity Group, LLC (Subsidiary co-obligor) | Reportable Legal Entities | |||
Cash flows from operating activities: | |||
Net cash provided by (used for) operating activities | 24,655 | (10,514) | |
Cash flows from investing activities: | |||
Proceeds from sale of fixed maturities | 3,007 | 12,200 | |
Proceeds from sale of equity securities | 41,980 | 15,354 | |
Proceeds from maturity of fixed maturities | 0 | 0 | |
Proceeds from other invested assets | (338) | 0 | |
Amounts paid in connection with derivatives | (20,007) | (3,735) | |
Purchases of fixed maturities | (30,117) | (23,149) | |
Purchases of equity securities | (9,224) | (17,989) | |
Purchases of other invested assets | 0 | (3,500) | |
Net cash provided by (used for) investing activities | (14,699) | (20,819) | |
Cash flows from financing activities: | |||
Net borrowings (repayments) under margin borrowing facility | (1,922) | 5,950 | |
Dividends paid to shareholders | 0 | 0 | |
Purchase of A ordinary shares | 0 | 0 | |
Net cash provided by (used for) financing activities | (1,922) | 5,950 | |
Net change in cash and cash equivalents | 8,034 | (25,383) | |
Cash and cash equivalents at beginning of period | 2,663 | 26,039 | |
Cash and cash equivalents at end of period | 10,697 | 656 | |
Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) | |||
Cash flows from operating activities: | |||
Net cash provided by (used for) operating activities | [1] | (227) | (14,901) |
Cash flows from investing activities: | |||
Proceeds from sale of fixed maturities | [1] | 121,063 | 39,491 |
Proceeds from sale of equity securities | [1] | 0 | 0 |
Proceeds from maturity of fixed maturities | [1] | 13,259 | 19,352 |
Proceeds from other invested assets | [1] | 0 | 0 |
Amounts paid in connection with derivatives | [1] | 0 | 0 |
Purchases of fixed maturities | [1] | (126,307) | (78,327) |
Purchases of equity securities | [1] | 0 | 0 |
Purchases of other invested assets | [1] | 0 | 0 |
Net cash provided by (used for) investing activities | [1] | 8,015 | (19,484) |
Cash flows from financing activities: | |||
Net borrowings (repayments) under margin borrowing facility | [1] | 0 | 0 |
Dividends paid to shareholders | [1] | 0 | 0 |
Purchase of A ordinary shares | [1] | 0 | 0 |
Net cash provided by (used for) financing activities | [1] | 0 | 0 |
Net change in cash and cash equivalents | [1] | 7,788 | (34,385) |
Cash and cash equivalents at beginning of period | [1] | 40,631 | 71,237 |
Cash and cash equivalents at end of period | [1] | $ 48,419 | $ 36,852 |
[1] | Includes all other subsidiaries of Global Indemnity Limited and eliminations |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Fox Paine and Company - Subsequent Event | May 06, 2020USD ($) |
Subsequent Event [Line Items] | |
Elimination of reimbursable expenses | $ 550,000 |
Increase in management fee | $ 550,000 |