Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 29, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Registrant Name | GLOBAL INDEMNITY GROUP, LLC | |
Entity Central Index Key | 0001494904 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-34809 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-2619578 | |
Entity Address, Address Line One | Three Bala Plaza East | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Bala Cynwyd | |
Entity Address, Country | PA | |
Entity Address, Postal Zip Code | 19004 | |
City Area Code | 610 | |
Local Phone Number | 664-1500 | |
Class A Common Shares | ||
Document Information [Line Items] | ||
Entity Ordinary Shares, Shares Outstanding | 10,242,703 | |
Title of each class | Class A Common Shares | |
Trading Symbol | GBLI | |
Name of each exchange on which registered | NASDAQ | |
Class B Common Shares | ||
Document Information [Line Items] | ||
Entity Ordinary Shares, Shares Outstanding | 4,133,366 | |
Series A Cumulative Fixed Rate Preferred Shares | ||
Document Information [Line Items] | ||
Entity Ordinary Shares, Shares Outstanding | 4,000 | |
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 | Sep. 30, 2020 | Dec. 31, 2019 |
Fixed maturities: | ||
Available for sale, at fair value (amortized cost: $1,260,439 and $1,231,568; net of allowance of: 2020 - $0) | $ 1,303,775 | $ 1,253,159 |
Equity securities, at fair value | 75,941 | 263,104 |
Other invested assets | 37,749 | 47,279 |
Total investments | 1,417,465 | 1,563,542 |
Cash and cash equivalents | 37,211 | 44,271 |
Premiums receivable, net of allowance for credit losses of $2,869 at September 30, 2020 | 109,820 | 118,035 |
Reinsurance receivables, net of allowance for credit losses of $8,992 at September 30, 2020 | 112,633 | 83,938 |
Funds held by ceding insurers | 46,894 | 48,580 |
Federal income taxes receivable | 0 | 10,989 |
Deferred federal income taxes | 35,300 | 31,077 |
Deferred acquisition costs | 67,470 | 70,677 |
Intangible assets | 21,094 | 21,491 |
Goodwill | 6,521 | 6,521 |
Prepaid reinsurance premiums | 15,558 | 16,716 |
Other assets | 69,791 | 60,048 |
Total assets | 1,939,757 | 2,075,885 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 669,930 | 630,181 |
Unearned premiums | 304,074 | 314,861 |
Ceded balances payable | 9,576 | 20,404 |
Payable for securities purchased | 5,630 | 850 |
Contingent commissions | 11,329 | 11,928 |
Debt | 126,253 | 296,640 |
Other liabilities | 92,252 | 74,212 |
Total liabilities | 1,219,044 | 1,349,076 |
Commitments and contingencies (Note 11) | ||
Shareholders’ equity: | ||
Common shares, par value: no par at September 30, 2020 and $0.0001 at December 31, 2019, 900,000,000 common shares authorized; class A common shares issued: 10,242,703 and 10,282,277 respectively; class A common shares outstanding: 10,242,703 and 10,167,056, respectively; class B common shares issued and outstanding: 4,133,366 and 4,133,366, respectively | 0 | 2 |
Additional paid-in capital | 443,437 | 442,403 |
Accumulated other comprehensive income, net of taxes | 35,720 | 17,609 |
Retained earnings | 237,556 | 270,768 |
Total shareholders’ equity | 720,713 | 726,809 |
Total liabilities and shareholders’ equity | 1,939,757 | 2,075,885 |
Series A Cumulative Fixed Rate Preferred Shares | ||
Shareholders’ equity: | ||
Series A cumulative fixed rate preferred shares, $1,000 par value; 100,000,000 shares authorized, shares issued and outstanding: 4,000 and 0 shares, respectively, liquidation preference: $1,000 per share and $0, respectively | 4,000 | |
Total shareholders’ equity | 4,000 | |
Class A Common Shares | ||
Shareholders’ equity: | ||
Class A common shares in treasury, at cost: 0 and 115,221 shares, respectively | 0 | (3,973) |
Total shareholders’ equity | $ 0 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Available for sale, amortized cost | $ 1,260,439 | $ 1,231,568 |
Available-for-sale, net of allowance | 0 | |
Premiums receivable, allowance for credit loss | 2,869 | 2,754 |
Reinsurance receivable, allowance for credit loss | $ 8,992 | $ 8,992 |
Common shares, par value | $ 0 | $ 0.0001 |
Common shares, shares authorized | 900,000,000 | 900,000,000 |
Series A Cumulative Fixed Rate Preferred Shares | ||
Preferred shares, par value | $ 1,000 | $ 1,000 |
Preferred shares, shares authorized | 100,000,000 | 100,000,000 |
Preferred shares, shares issued | 4,000 | 0 |
Preferred shares, shares outstanding | 4,000 | 0 |
Preferred shares, liquidation preference | $ 1,000 | $ 0 |
Class A Common Shares | ||
Common shares, shares issued | 10,242,703 | 10,282,277 |
Common shares, shares outstanding | 10,242,703 | 10,167,056 |
Treasury shares, shares | 0 | 115,221 |
Class B Common Shares | ||
Common shares, shares issued | 4,133,366 | 4,133,366 |
Common shares, shares outstanding | 4,133,366 | 4,133,366 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Revenues: | |||||
Gross written premiums | $ 143,749 | $ 157,177 | $ 464,022 | $ 478,699 | |
Net written premiums | 130,611 | 138,836 | 416,987 | 421,321 | |
Net earned premiums | 140,302 | 133,312 | 426,617 | 383,602 | |
Net investment income | 11,746 | 11,348 | 19,516 | 32,393 | |
Net realized investment gains (losses): | |||||
Other than temporary impairment losses on investments | 0 | 0 | 0 | (1,897) | |
Other net realized investment gains (losses) | 7,323 | (2,690) | (22,332) | 13,187 | |
Total net realized investment gains (losses) | 7,323 | (2,690) | (22,332) | 11,290 | |
Other income | 542 | 264 | 1,473 | 1,274 | |
Total revenues | 159,913 | 142,234 | 425,274 | 428,559 | |
Losses and Expenses: | |||||
Net losses and loss adjustment expenses | 97,148 | 73,583 | 242,092 | 201,979 | |
Acquisition costs and other underwriting expenses | 53,268 | 53,366 | 163,258 | 153,643 | |
Corporate and other operating expenses | 21,196 | 3,858 | 34,037 | 11,702 | |
Interest expense | 3,620 | 5,023 | 13,197 | 15,088 | |
Loss on extinguishment of debt | 3,060 | 0 | 3,060 | 0 | |
Income (loss) before income taxes | (18,379) | 6,404 | (30,370) | 46,147 | |
Income tax expense (benefit) | (3,209) | (317) | (8,173) | 5,163 | |
Net income (loss) | (15,170) | 6,721 | (22,197) | 40,984 | |
Less: Preferred stock distributions | 42 | 0 | 42 | 0 | |
Net income (loss) available to common shareholders | $ (15,212) | $ 6,721 | $ (22,239) | $ 40,984 | |
Net income (loss) available to common shareholders | |||||
Basic | [1] | $ (1.06) | $ 0.47 | $ (1.56) | $ 2.89 |
Diluted | [1] | $ (1.06) | $ 0.47 | $ (1.56) | $ 2.86 |
Weighted-average number of shares outstanding | |||||
Basic | 14,304,426 | 14,202,859 | 14,276,594 | 14,181,530 | |
Diluted | 14,304,426 | 14,327,757 | 14,276,594 | 14,328,861 | |
Cash dividends/distributions declared per common share | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 | |
[1] | For the quarter and nine months ended September 30, 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 (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (15,170) | $ 6,721 | $ (22,197) | $ 40,984 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized holding gain | (448) | 9,421 | 30,748 | 48,883 |
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | 0 | (2) | 0 | (4) |
Reclassification adjustment for gains included in net income (loss) | (2,104) | (847) | (13,205) | (2,665) |
Unrealized foreign currency translation gain (loss) | 579 | 200 | 568 | 331 |
Other comprehensive income (loss), net of tax | (1,973) | 8,772 | 18,111 | 46,545 |
Comprehensive income (loss), net of tax | $ (17,143) | $ 15,493 | $ (4,086) | $ 87,529 |
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 | Class A Common Shares | Class A Common SharesTreasury Shares | Series A Cumulative Fixed Rate Preferred Shares | Class B Common Shares |
Number at Dec. 31, 2018 | 76,642 | 10,171,954 | 4,133,366 | ||||||
Class A common shares purchased | 27,028 | ||||||||
Retirement of shares | 6,779 | ||||||||
Preferred shares issued | 0 | ||||||||
Common shares issued / (forfeited) under share incentive plans | 36,180 | ||||||||
Common shares issued to directors | 50,661 | ||||||||
Reduction in treasury shares due to redomestication | 0 | 0 | |||||||
Number at Sep. 30, 2019 | 110,449 | 10,258,795 | 0 | 4,133,366 | |||||
Balance at Dec. 31, 2018 | $ 438,182 | $ (21,231) | $ 215,132 | $ (3,026) | $ 1 | $ 1 | |||
Class A common shares purchased, at cost | $ (947) | ||||||||
Reduction in par due to redomestication | 0 | 0 | |||||||
Reduction in treasury shares due to redomestication | 0 | 0 | |||||||
Other comprehensive income (loss): | |||||||||
Change in unrealized holding gains (losses) | 46,218 | ||||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | $ (4) | (4) | |||||||
Unrealized foreign currency translation gains | 331 | 331 | |||||||
Other comprehensive income (loss), net of tax | 46,545 | 46,545 | |||||||
Cumulative effect adjustment resulting from adoption of new accounting guidance | (5) | ||||||||
Net income (loss) | 40,984 | 40,984 | |||||||
Preferred share distributions | 0 | ||||||||
Dividends/ Distribution to shareholders | (10,765) | ||||||||
Share compensation plans | 2,513 | ||||||||
Preferred shares issued | $ 0 | ||||||||
Balance at Sep. 30, 2019 | 707,384 | 440,695 | 25,314 | 245,346 | $ (3,973) | $ 1 | $ 0 | $ 1 | |
Number at Jun. 30, 2019 | 110,449 | 10,239,520 | 4,133,366 | ||||||
Class A common shares purchased | 0 | ||||||||
Retirement of shares | 0 | ||||||||
Preferred shares issued | 0 | ||||||||
Common shares issued / (forfeited) under share incentive plans | 0 | ||||||||
Common shares issued to directors | 19,275 | ||||||||
Reduction in treasury shares due to redomestication | 0 | 0 | |||||||
Number at Sep. 30, 2019 | 110,449 | 10,258,795 | 0 | 4,133,366 | |||||
Balance at Jun. 30, 2019 | 439,707 | 16,542 | 242,234 | $ (3,973) | $ 1 | $ 1 | |||
Class A common shares purchased, at cost | $ 0 | ||||||||
Reduction in par due to redomestication | 0 | 0 | |||||||
Reduction in treasury shares due to redomestication | 0 | 0 | |||||||
Other comprehensive income (loss): | |||||||||
Change in unrealized holding gains (losses) | 8,574 | ||||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | (2) | (2) | |||||||
Unrealized foreign currency translation gains | 200 | 200 | |||||||
Other comprehensive income (loss), net of tax | 8,772 | 8,772 | |||||||
Cumulative effect adjustment resulting from adoption of new accounting guidance | 0 | ||||||||
Net income (loss) | 6,721 | 6,721 | |||||||
Preferred share distributions | 0 | ||||||||
Dividends/ Distribution to shareholders | (3,609) | ||||||||
Share compensation plans | 988 | ||||||||
Preferred shares issued | $ 0 | ||||||||
Balance at Sep. 30, 2019 | 707,384 | 440,695 | 25,314 | 245,346 | $ (3,973) | $ 1 | $ 0 | $ 1 | |
Number at Dec. 31, 2019 | 115,221 | 10,282,277 | 4,133,366 | ||||||
Class A common shares purchased | 5,120 | ||||||||
Retirement of shares | 159 | ||||||||
Preferred shares issued | 4,000 | ||||||||
Common shares issued / (forfeited) under share incentive plans | (576) | ||||||||
Common shares issued to directors | 81,502 | ||||||||
Reduction in treasury shares due to redomestication | (120,500) | (120,500) | |||||||
Number at Sep. 30, 2020 | 0 | 10,242,703 | 4,000 | 4,133,366 | |||||
Balance at Dec. 31, 2019 | 726,809 | 442,403 | 17,609 | 270,768 | $ (3,973) | $ 1 | $ 1 | ||
Class A common shares purchased, at cost | $ (153) | ||||||||
Reduction in par due to redomestication | (1) | (1) | |||||||
Reduction in treasury shares due to redomestication | (4,126) | 4,126 | |||||||
Other comprehensive income (loss): | |||||||||
Change in unrealized holding gains (losses) | 17,543 | ||||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | 0 | 0 | |||||||
Unrealized foreign currency translation gains | 568 | 568 | |||||||
Other comprehensive income (loss), net of tax | 18,111 | 18,111 | |||||||
Cumulative effect adjustment resulting from adoption of new accounting guidance | 0 | ||||||||
Net income (loss) | (22,197) | (22,197) | |||||||
Preferred share distributions | (42) | (42) | |||||||
Dividends/ Distribution to shareholders | (10,973) | ||||||||
Share compensation plans | 5,160 | ||||||||
Preferred shares issued | $ 4,000 | ||||||||
Balance at Sep. 30, 2020 | 720,713 | 443,437 | 35,720 | 237,556 | $ 0 | $ 0 | $ 4,000 | $ 0 | |
Number at Jun. 30, 2020 | 120,104 | 10,333,540 | 4,133,366 | ||||||
Class A common shares purchased | 396 | ||||||||
Retirement of shares | 0 | ||||||||
Preferred shares issued | 4,000 | ||||||||
Common shares issued / (forfeited) under share incentive plans | (230) | ||||||||
Common shares issued to directors | 29,893 | ||||||||
Reduction in treasury shares due to redomestication | (120,500) | (120,500) | |||||||
Number at Sep. 30, 2020 | 0 | 10,242,703 | 4,000 | 4,133,366 | |||||
Balance at Jun. 30, 2020 | 445,173 | 37,693 | 256,442 | $ (4,116) | $ 1 | $ 1 | |||
Class A common shares purchased, at cost | $ (10) | ||||||||
Reduction in par due to redomestication | (1) | (1) | |||||||
Reduction in treasury shares due to redomestication | (4,126) | 4,126 | |||||||
Other comprehensive income (loss): | |||||||||
Change in unrealized holding gains (losses) | (2,552) | ||||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | 0 | 0 | |||||||
Unrealized foreign currency translation gains | 579 | 579 | |||||||
Other comprehensive income (loss), net of tax | (1,973) | (1,973) | |||||||
Cumulative effect adjustment resulting from adoption of new accounting guidance | 0 | ||||||||
Net income (loss) | (15,170) | (15,170) | |||||||
Preferred share distributions | (42) | (42) | |||||||
Dividends/ Distribution to shareholders | (3,674) | ||||||||
Share compensation plans | 2,390 | ||||||||
Preferred shares issued | $ 4,000 | ||||||||
Balance at Sep. 30, 2020 | $ 720,713 | $ 443,437 | $ 35,720 | $ 237,556 | $ 0 | $ 0 | $ 4,000 | $ 0 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Retained Earnings | ||
Dividend payable, per share | $ 0.25 | $ 0.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (22,197) | $ 40,984 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization and depreciation | 5,121 | 5,327 |
Amortization of debt issuance costs | 182 | 198 |
Restricted stock and stock option expense | 5,157 | 2,513 |
Deferred federal income taxes | (8,303) | 5,198 |
Amortization of bond premium and discount, net | 4,828 | 3,697 |
Net realized investment (gains) loss | 22,332 | (11,290) |
Loss on extinguishment of debt | 3,060 | 0 |
Equity in the earnings of equity method limited liability investments | 8,004 | 0 |
Changes in: | ||
Premiums receivable, net | 8,215 | (25,313) |
Reinsurance receivables, net | (28,695) | 31,406 |
Funds held by ceding insurers | 2,132 | 786 |
Unpaid losses and loss adjustment expenses | 39,749 | (46,744) |
Unearned premiums | (10,787) | 34,885 |
Ceded balances payable | (10,828) | 21,437 |
Other assets and liabilities, net | 1,211 | (9,929) |
Contingent commissions | (599) | (601) |
Federal income tax receivable/payable | 10,989 | (270) |
Deferred acquisition costs, net | 3,207 | (9,185) |
Prepaid reinsurance premiums | 1,158 | 2,831 |
Net cash provided by operating activities | 33,936 | 45,930 |
Cash flows from investing activities: | ||
Proceeds from sale of fixed maturities | 600,962 | 642,049 |
Proceeds from sale of equity securities | 563,926 | 206,212 |
Proceeds from maturity of fixed maturities | 89,875 | 113,480 |
Proceeds from other invested assets | 1,823 | 14,201 |
Amounts paid in connection with derivatives | (20,130) | (12,516) |
Purchases of fixed maturities | (702,727) | (701,684) |
Purchases of equity securities | (393,963) | (325,972) |
Purchases of other invested assets | (297) | (3,500) |
Net cash provided by (used for) investing activities | 139,469 | (67,730) |
Cash flows from financing activities: | ||
Net borrowings (repayments) under margin borrowing facility | (73,629) | 8,561 |
Dividends paid to common shareholders | (10,683) | (7,130) |
Issuance of series A cumulative fixed rate preferred shares | 4,000 | 0 |
Purchases of class A common shares | (153) | (947) |
Redemption of subordinated notes | (100,000) | 0 |
Net cash provided by (used for) financing activities | (180,465) | 484 |
Net change in cash and cash equivalents | (7,060) | (21,316) |
Cash and cash equivalents at beginning of period | 44,271 | 99,497 |
Cash and cash equivalents at end of period | $ 37,211 | $ 78,181 |
Principles of Consolidation and
Principles of Consolidation and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principles of Consolidation and Basis of Presentation | 1. Principles of Consolidation and Basis of Presentation References to “the Company” refer to Global Indemnity Group, LLC and its subsidiaries. If prior to August 28, 2020, references to the Company refer to Global Indemnity Limited and its subsidiaries. Global Indemnity Group, LLC (“Global Indemnity” or “the Company”), a Delaware limited liability company formed on June 23, 2020, replaced Global Indemnity Limited, incorporated in the Cayman Islands as an exempted company with limited liability, as the ultimate parent company of the Global Indemnity group of companies as a result of a redomestication transaction completed on August 28, 2020. The Company’s class A common shares are publicly traded on the NASDAQ Global Select Market under the ticker symbol GBLI. The Company’s predecessors have been publicly traded since 2003. See Note 2 below for additional information regarding the redomestication. 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. 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. 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 Insurance Operations (“Insurance Operations”). The Company’s Reinsurance Operations segment provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. Prior to the redomestication transactions, the Company’s Reinsurance Operations consisted solely of the operations of its Bermuda-based wholly-owned subsidiary, Global Indemnity Reinsurance Company, Ltd. (“Global Indemnity Reinsurance”). As part of the redomestication transactions, Global Indemnity Reinsurance was merged with and into Penn-Patriot Insurance Company ("Penn-Patriot"), with Penn-Patriot surviving, resulting in the assumption of Global Indemnity Reinsurance's business by the Company’s existing U.S. insurance company subsidiaries. The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and nine months ended September 30, 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. |
Redomestication
Redomestication | 9 Months Ended |
Sep. 30, 2020 | |
Redomestication Disclosure [Abstract] | |
Redomestication | 2. Redomestication At 12:01 a.m., Eastern Time, on August 28, 2020 (the "Effective Time"), Global Indemnity Limited, incorporated in the Cayman Islands as an exempted company with limited liability, completed the previously disclosed scheme of arrangement and amalgamation under Sections 86 and 87 of the Cayman Islands Companies Law (2020 Revision) (the "Scheme of Arrangement") that effected certain transactions (the "Redomestication") that resulted in the shareholders of Global Indemnity Limited becoming the holders of all of the issued and outstanding common shares of the Company. In accordance with the terms of the Scheme of Arrangement, the following steps occurred effectively simultaneously at the Effective Time: 1. Global Indemnity Limited merged with and into New CayCo, a newly formed and wholly owned subsidiary of the Company incorporated in the Cayman Islands as an exempted company with limited liability, following which, New CayCo survived the merger (the "Amalgamation"); 2. in consideration of the Amalgamation, the Company issued an equal number of its common shares to Global Indemnity Limited shareholders at the record time of 5:00 p.m. Eastern Time on August 27, 2020 (the "Scheme Record Time"), on the following basis: for each Global Indemnity Limited A ordinary share cancelled, one class A common share of the Company was issued; and for each Global Indemnity Limited B ordinary share cancelled, one class B common share of the Company was issued; and 3. pursuant to the Scheme of Arrangement and as part of the Amalgamation, Global Indemnity Limited was dissolved without being wound up and ceases to exist as a separate legal entity. As a result, any references to class A common shares after the Effective Time refer to Global Indemnity Group, LLC class A common shares and any references to class A common shares prior to the Effective Time refers to Global Indemnity Limited A ordinary shares. As previously disclosed, the Redomestication was approved by Global Indemnity Limited’s shareholders at a special meeting and an extraordinary general meeting held on August 25, 2020, convened by Order of the Grand Court of the Cayman Islands dated July 22, 2020. The terms and conditions of the issuance of the securities in connection with the Redomestication were sanctioned by the Grand Court of the Cayman Islands pursuant to an Order granted on August 26, 2020 after a hearing upon the fairness of such terms and conditions at which all holders of Global Indemnity Limited ordinary shares had a right to appear and of which adequate notice had been given. Following completion of the Scheme of Arrangement, New CayCo merged with and into the Company, with the Company surviving as the ultimate parent company. Additionally, as part of the Redomestication transactions, Global Indemnity Reinsurance Company was merged with and into Penn-Patriot, with Penn-Patriot surviving, resulting in the assumption of Global Indemnity Reinsurance’s business by the Company’s existing U.S. insurance company subsidiaries (the "GI Bermuda Transaction" and, together with the Redomestication and the other transactions described in Global Indemnity Limited's Definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on July 23, 2020 (the "Redomestication Proxy Statement"), the "Transactions"). Prior to the Redomestication, the Global Indemnity Limited A ordinary shares were listed on the Nasdaq Global Select Market ("Nasdaq") under the symbol "GBLI" and registered under Section 12(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). At the Effective Time, the Company’s class A common shares are deemed to be registered under Section 12(b) of the Exchange Act pursuant to Rule 12g-3(a) under the Exchange Act. The issuance of the class A common shares by the Company in the Redomestication was exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), by virtue of Section 3(a)(10) of the Securities Act. The Company’s class A common shares began trading on Nasdaq under the symbol "GBLI," the same symbol under which the Global Indemnity Limited ordinary shares previously traded, at the commencement of trading on Nasdaq on August 28, 2020. On August 27, 2020, the Company issued 4,000 series A cumulative fixed rate preferred shares. Following the Effective Time, all of the issued and outstanding series A fixed rate preferred shares were unaffected by the Scheme of Arrangement. See Note 10 for additional information regarding the issuance of these preferred shares. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 3 . 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 assets. 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 elected the practical expedient to exclude accrued interest from both the fair value and the amortized cost basis of the available for sale debt securities for the purposes of identifying and measuring an impairment and to not measure an allowance for credit losses for accrued interest receivables. Accrued interest receivable is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default on payment. The Company made an accounting policy election to present the accrued interest receivable balance with other assets on the Company’s consolidated statements of financial position. Accrued interest receivable was $6.1 million and $7.0 million as of September 30, 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 September 30, 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 September 30, 2020 Fixed maturities: U.S. treasury and agency obligations $ 197,192 $ — $ 4,980 $ (215 ) $ 201,957 Obligations of states and political subdivisions 59,134 — 3,055 (188 ) 62,001 Mortgage-backed securities 393,325 — 8,879 (1,120 ) 401,084 Asset-backed securities 137,953 — 2,198 (1,001 ) 139,150 Commercial mortgage-backed securities 132,271 — 7,444 (804 ) 138,911 Corporate bonds 243,082 — 16,914 (1,135 ) 258,861 Foreign corporate bonds 97,482 — 4,533 (204 ) 101,811 Total fixed maturities $ 1,260,439 $ — $ 48,003 $ (4,667 ) $ 1,303,775 (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 September 30, 2020 and December 31, 2019, the Company’s investments in equity securities consist of the following: (Dollars in thousands) September 30, 2020 December 31, 2019 Common stock $ — $ 135,329 Preferred stock 11,268 11,656 Index funds that invest in fixed maturities 64,673 54,648 Index funds that invest in common stock — 61,471 Total $ 75,941 $ 263,104 As of September 30, 2020 and December 31, 2019, the Company held Fannie Mae mortgage pools that totaled as much as 4.6% and 4.2% of shareholders’ equity, respectively. Excluding the Fannie Mae pools, U.S. treasuries, agency bonds, index funds, and limited partnerships, the Company did not hold any debt or equity investments in a single issuer in excess of 2% and 3% of shareholders' equity at September 30, 2020 and December 31, 2019, respectively. The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at September 30, 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 $ 43,213 $ 43,642 Due in one year through five years 218,132 228,538 Due in five years through ten years 242,488 252,950 Due in ten years through fifteen years 27,757 29,337 Due after fifteen years 65,300 70,163 Mortgage-backed securities 393,325 401,084 Asset-backed securities 137,953 139,150 Commercial mortgage-backed securities 132,271 138,911 Total $ 1,260,439 $ 1,303,775 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 September 30, 2020. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 5 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 Total (1) (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 $ 37,486 $ (215 ) $ — $ — $ 37,486 $ (215 ) Obligations of states and political subdivisions 2,471 (188 ) — — 2,471 (188 ) Mortgage-backed securities 97,405 (1,017 ) 1,421 (103 ) 98,826 (1,120 ) Asset-backed securities 31,769 (733 ) 9,916 (268 ) 41,685 (1,001 ) Commercial mortgage-backed securities 12,098 (689 ) 1,026 (115 ) 13,124 (804 ) Corporate bonds 28,337 (1,135 ) — — 28,337 (1,135 ) Foreign corporate bonds 11,899 (204 ) — — 11,899 (204 ) Total fixed maturities $ 221,465 $ (4,181 ) $ 12,363 $ (486 ) $ 233,828 $ (4,667 ) (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 5 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 Total (1) (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 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 September 30, 2020, gross unrealized losses related to U.S. treasury and agency obligations were $0.215 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 September 30, 2020, gross unrealized losses related to obligations of states and political subdivisions were $0.188 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 September 30, 2020, gross unrealized losses related to mortgage-backed securities were $1.120 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 September 30, 2020, gross unrealized losses related to asset backed securities were $1.001 million. The weighted average credit enhancement for the Company’s asset backed portfolio is 33.3. 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 September 30, 2020, gross unrealized losses related to the CMBS portfolio were $0.804 million. The weighted average credit enhancement for the Company’s CMBS portfolio is 32.4. 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 September 30, 2020, gross unrealized losses related to corporate bonds were $1.135 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 September 30, 2020, gross unrealized losses related to foreign bonds were $0.204 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, detailed financial models are maintained that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. Based on the analysis performed, the Company did not recognize a credit loss on foreign bonds during the period. The Company has evaluated its investment portfolio and has determined that an allowance for credit losses on its investments is not required. The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the quarter and nine months ended September 30, 2019: Quarter Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 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 and nine months ended September 30, 2019 for which a portion of the OTTI loss was recognized in other comprehensive income. Quarter Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2019 Balance at beginning of period $ 13 $ 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 $ 13 Accumulated Other Comprehensive Income, Net of Tax Accumulated other comprehensive income, net of tax, as of September 30, 2020 and December 31, 2019 was as follows: (Dollars in thousands) September 30, 2020 December 31, 2019 Net unrealized gains (losses) from: Fixed maturities $ 43,336 $ 21,591 Foreign currency fluctuations (587 ) (1,032 ) Deferred taxes (7,029 ) (2,950 ) Accumulated other comprehensive income, net of tax $ 35,720 $ 17,609 The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the quarters and nine months ended September 30, 2020 and 2019: Quarter Ended September 30, 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 $ 38,736 $ (1,043 ) $ 37,693 Other comprehensive income before reclassification, before tax 1,852 456 2,308 Amounts reclassified from accumulated other comprehensive income, before tax (2,276 ) — (2,276 ) Other comprehensive income, before tax (424 ) 456 32 Income tax (expense) benefit (2,128 ) 123 (2,005 ) Ending balance, net of tax $ 36,184 $ (464 ) $ 35,720 Quarter Ended September 30, 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 $ 17,745 $ (1,203 ) $ 16,542 Other comprehensive income (loss) before reclassification, before tax 10,767 200 10,967 Amounts reclassified from accumulated other comprehensive income, before tax (946 ) — (946 ) Other comprehensive income (loss), before tax 9,821 200 10,021 Income tax expense (1,249 ) — (1,249 ) Ending balance, net of tax $ 26,317 $ (1,003 ) $ 25,314 Nine Months Ended September 30, 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 38,773 445 39,218 Amounts reclassified from accumulated other comprehensive income, before tax (17,028 ) — (17,028 ) Other comprehensive income, before tax 21,745 445 22,190 Income tax (expense) benefit (4,202 ) 123 (4,079 ) Ending balance, net of tax $ 36,184 $ (464 ) $ 35,720 Nine Months Ended September 30, 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 55,960 331 56,291 Amounts reclassified from accumulated other comprehensive income, before tax (2,834 ) — (2,834 ) Other comprehensive income, before tax 53,126 331 53,457 Income tax expense (6,912 ) — (6,912 ) Ending balance, net of tax $ 26,317 $ (1,003 ) $ 25,314 The reclassifications out of accumulated other comprehensive income for the quarters and nine months ended September 30, 2020 and 2019 were as follows: Amounts Reclassified from Accumulated Other Comprehensive Income (Dollars in thousands) Quarters Ended September 30, 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 $ (2,276 ) $ (946 ) Other than temporary impairment losses on investments — — Total before tax (2,276 ) (946 ) Income tax expense (benefit) 172 99 Unrealized gains and losses on available for sale securities, net of tax (2,104 ) (847 ) 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 $ (2,104 ) $ (847 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Dollars in thousands) Nine Months Ended September 30, 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 $ (17,028 ) $ (4,731 ) Other than temporary impairment losses on investments — 1,897 Total before tax (17,028 ) (2,834 ) Income tax expense (benefit) 3,823 169 Unrealized gains and losses on available for sale securities, net of tax (13,205 ) (2,665 ) 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 $ (13,205 ) $ (2,665 ) Net Realized Investment Gains (Losses) The components of net realized investment gains (losses) for the quarters and nine months ended September 30, 2020 and 2019 were as follows: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2020 2019 2020 2019 Fixed maturities: Gross realized gains $ 2,705 $ 1,054 $ 21,685 $ 5,765 Gross realized losses (429 ) (108 ) (4,657 ) (2,931 ) Net realized gains (losses) 2,276 946 17,028 2,834 Equity securities: Gross realized gains 4,942 1,681 14,669 26,936 Gross realized losses (55 ) (3,146 ) (31,870 ) (9,076 ) Net realized gains (losses) 4,887 (1,465 ) (17,201 ) 17,860 Derivatives: Gross realized gains 1,520 341 19,514 341 Gross realized losses (1,360 ) (2,512 ) (41,673 ) (9,745 ) Net realized gains (losses) (1) 160 (2,171 ) (22,159 ) (9,404 ) Total net realized investment gains (losses) $ 7,323 $ (2,690 ) $ (22,332 ) $ 11,290 (1) Includes periodic net interest settlements related to the derivatives of $1.4 million and $0.3 million for the quarters ended September 30, 2020 and 2019, respectively, and $3.1 million Net realized investment gains (losses) for the quarter and nine months ended September 30, 2020 were primarily due to the impact of changes in fair value due to the recent disruption in the global financial markets. The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of September 30, 2020 and 2019: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2020 2019 2020 2019 Net gains and (losses) recognized during the period on equity securities $ 4,887 $ (1,465 ) $ (17,201 ) $ 17,860 Less: Net gains (losses) recognized during the period on equity securities sold during the period 3,419 (614 ) (366 ) 9,836 Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date $ 1,468 $ (851 ) $ (16,835 ) $ 8,024 The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the nine months ended September 30, 2020 and 2019 were as follows: Nine Months Ended September 30, (Dollars in thousands) 2020 2019 Fixed maturities $ 600,962 $ 642,049 Equity securities 563,926 206,212 Net Investment Income The sources of net investment income for the quarters and nine months ended September 30, 2020 and 2019 were as follows: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2020 2019 2020 2019 Fixed maturities $ 7,421 $ 8,806 $ 25,013 $ 27,692 Equity securities 1,390 1,704 4,161 4,384 Cash and cash equivalents 260 372 492 1,242 Other invested assets 3,485 1,280 (8,004 ) 1,394 Total investment income 12,556 12,162 21,662 34,712 Investment expense (810 ) (814 ) (2,146 ) (2,319 ) Net investment income $ 11,746 $ 11,348 $ 19,516 $ 32,393 The Company’s total investment return on a pre-tax basis for the quarters and nine months ended September 30, 2020 and 2019 were as follows: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2020 2019 2020 2019 Net investment income $ 11,746 $ 11,348 $ 19,516 $ 32,393 Net realized investment gains (losses) 7,323 (2,690 ) (22,332 ) 11,290 Change in unrealized holding gains and losses 32 10,021 22,190 53,457 Net realized and unrealized investment returns 7,355 7,331 (142 ) 64,747 Total investment return $ 19,101 $ 18,679 $ 19,374 $ 97,140 Total investment return % (1) 1.2 % 1.2 % 1.3 % 6.2 % Average investment portfolio (2) $ 1,541,227 $ 1,585,165 $ 1,528,005 $ 1,562,177 (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 September 30, 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 September 30, 2020, the Company held insurance enhanced bonds with a market value of approximately $26.0 million The insurance enhanced bonds are comprised of $15.3 million of municipal bonds, $10.6 million of commercial mortgage-backed securities, and less than $0.1 million of collateralized mortgage obligations. The financial guarantors of the Company’s $26.0 million of insurance enhanced commercial-mortgage-backed, municipal securities, and collateralized mortgage obligations include Municipal Bond Insurance Association ($3.2 million), Assured Guaranty Corporation ($10.0 million), Federal Home Loan Mortgage Corporation ($10.6 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 September 30, 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 September 30, 2020 and December 31, 2019: Estimated Fair Value (Dollars in thousands) September 30, 2020 December 31, 2019 On deposit with governmental authorities $ 27,082 $ 26,431 Intercompany trusts held for the benefit of U.S. policyholders 142,496 179,116 Held in trust pursuant to third party requirements 84,174 133,122 Letter of credit held for third party requirements 2,645 1,458 Securities held as collateral 555 91,229 Total $ 256,952 $ 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 $11.3 million and $13.5 million as of September 30, 2020 and December 31, 2019, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $25.5 million and $27.7 million at September 30, 2020 and December 31, 2019, respectively. The carrying value of a second VIE that also invests in distressed securities and assets was $17.0 million and $24.0 million at September 30, 2020 and December 31, 2019, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $34.0 million and $41.0 million at September 30, 2020 and December 31, 2019, respectively. The carrying value of a third VIE that invests in REIT qualifying assets was $9.5 million and $9.8 million as of September 30, 2020 and December 31, 2019, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $9.5 million and $10.3 million at September 30, 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. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 4 . 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 September 30, 2020 and December 31, 2019: (Dollars in thousands) September 30, 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 $ (17,931 ) $ 200,000 $ (10,275 ) Futures contracts on bonds (1) Other assets/liabilities 30,418 — 16,894 — Futures contracts on equities (1) Other assets/liabilities — — 57,816 — Total $ 230,418 $ (17,931 ) $ 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 and nine months ended September 30, 2020 and 2019: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) Consolidated Statements of Operations Line 2020 2019 2020 2019 Interest rate swap agreements Net realized investment gains (losses) $ 45 $ (1,831 ) $ (10,827 ) $ (9,064 ) Futures contracts on bonds Net realized investment gains (losses) 115 15 (2,343 ) 15 Futures contracts on equities Net realized investment gains (losses) — (355 ) (8,989 ) (355 ) Total $ 160 $ (2,171 ) $ (22,159 ) $ (9,404 ) As of both September 30, 2020 and December 31, 2019, the Company is due $3.0 million, for funds it needed to post to execute the swap transaction and $18.6 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 September 30, 2020 and December 31, 2019, the Company posted initial margin of $0.6 million and $3.0 million, respectively, in securities for trading futures contracts and has a mark-to-market payable of less than $0.1 million and receivable of $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 | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5 . Fair Value Measurements The accounting standards related to fair value measurements define fair value, establish a framework for measuring fair value, outline a fair value hierarchy based on inputs used to measure fair value, and enhance disclosure requirements for fair value measurements. These standards do not change existing guidance as to whether or not an instrument is carried at fair value. The Company has determined that its fair value measurements are in accordance with the requirements of these accounting standards. The Company’s invested assets and derivative instruments are carried at their fair value and are categorized based upon a fair value hierarchy: • Level 1 – inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date. • Level 2 – inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly. • Level 3 – inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset. The following table presents information about the Company’s invested assets and derivative instruments measured at fair value on a recurring basis as of September 30, 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 September 30, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 200,457 $ 1,500 $ — $ 201,957 Obligations of states and political subdivisions — 62,001 — 62,001 Mortgage-backed securities — 401,084 — 401,084 Commercial mortgage-backed securities — 138,911 — 138,911 Asset-backed securities — 139,150 — 139,150 Corporate bonds — 258,861 — 258,861 Foreign corporate bonds — 101,811 — 101,811 Total fixed maturities 200,457 1,103,318 — 1,303,775 Equity securities 64,673 11,268 — 75,941 Total assets measured at fair value $ 265,130 $ 1,114,586 $ — $ 1,379,716 Liabilities: Derivative instruments $ — $ 17,931 $ — $ 17,931 Total liabilities measured at fair value $ — $ 17,931 $ — $ 17,931 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 September 30, 2020 and December 31, 2019 was as follows: September 30, 2020 December 31, 2019 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Margin Borrowing Facility (1) $ — $ — $ 73,629 $ 73,629 7.75% Subordinated Notes due 2045 (2) — — 96,864 100,264 7.875% Subordinated Notes due 2047 (3) 126,253 130,153 126,147 134,462 Total $ 126,253 $ 130,153 $ 296,640 $ 308,355 (1) The Margin Borrowing Facility was fully paid down in August 2020. ( 2 ) As of December 31, 2019, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of ( 3 ) As of September 30, 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 $3.7 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 September 30, 2020 and December 31, 2019. September 30, 2020 December 31, 2019 (Dollars in thousands) Fair Value Future Funding Commitment Fair Value Future Funding Commitment European Non-Performing Loan Fund, LP (1) $ 11,283 $ 14,214 $ 13,530 $ 14,214 Distressed Debt Fund, LP (2) 16,979 17,000 23,966 17,000 Mortgage Debt Fund, LP (3) 9,487 — 9,783 506 Total $ 37,749 $ 31,214 $ 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 $3.5 million and $1.3 million for the quarters ended September 30, 2020 and 2019, respectively, and $(8.0) million and $1.4 million for the nine months ended September 30, 2020 and 2019, respectively. 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 and nine months ended September 30, 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 | 9 Months Ended |
Sep. 30, 2020 | |
Allowance For Credit Loss [Abstract] | |
Allowance for Credit Losses - Premiums Receivable and Reinsurance Receivables | 6. The Company implemented new accounting guidance on January 1, 2020 related to the measurement of credit losses on financial instruments. Please see Note 17 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 and nine months ended September 30, 2020: Quarter Ended September 30, 2020 Nine Months Ended September 30, 2020 (Dollars in thousands) Premiums Receivable Reinsurance Receivables Premiums Receivable Reinsurance Receivables Beginning balance $ 2,931 $ 8,992 $ 2,754 $ 8,992 Current period provision for expected credit losses 476 — 951 — Write-offs (538 ) — (836 ) — Ending balance $ 2,869 $ 8,992 $ 2,869 $ 8,992 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes Effective August 28, 2020, the parent Company, Global Indemnity Group, LLC is a publicly traded partnership for U.S. federal income tax purposes and meets the qualifying income exception to maintain partnership status. As a publicly traded partnership, Global Indemnity Group, LLC is generally not subject to federal income tax and most state income taxes. However, income earned by the subsidiaries of Global Indemnity Group, LLC is subject to corporate tax in the United States and certain foreign jurisdictions. As of September 30, 2020 , the statutory income tax rates of the countries where the Company conducts or conducted 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 and nine months ended September 30, 2020 and 2019 were as follows: Quarter Ended September 30, 2020 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 13,085 $ 130,664 $ — $ 143,749 Net written premiums $ 13,085 $ 117,526 $ — $ 130,611 Net earned premiums $ 9,983 $ 130,319 $ — $ 140,302 Net investment income 4,054 9,851 (2,159 ) 11,746 Net realized investment gains 1,511 5,812 — 7,323 Other income 164 378 — 542 Total revenues 15,712 146,360 (2,159 ) 159,913 Losses and Expenses: Net losses and loss adjustment expenses 519 96,629 — 97,148 Acquisition costs and other underwriting expenses 3,584 49,684 — 53,268 Corporate and other operating expenses 17,283 3,913 — 21,196 Interest expense 193 5,586 (2,159 ) 3,620 Loss on extinguishment of debt 3,060 — — 3,060 Loss before income taxes $ (8,927 ) $ (9,452 ) $ — $ (18,379 ) Quarter Ended September 30, 2019 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 19,980 $ 137,197 $ — $ 157,177 Net written premiums $ 19,990 $ 118,846 $ — $ 138,836 Net earned premiums $ 19,512 $ 113,800 $ — $ 133,312 Net investment income 7,212 7,732 (3,596 ) 11,348 Net realized investment gains (losses) 375 (3,065 ) — (2,690 ) Other income (loss) (234 ) 498 — 264 Total revenues 26,865 118,965 (3,596 ) 142,234 Losses and Expenses: Net losses and loss adjustment expenses 7,628 65,955 — 73,583 Acquisition costs and other underwriting expenses 6,201 47,165 — 53,366 Corporate and other operating expenses 1,514 2,344 — 3,858 Interest expense 351 8,268 (3,596 ) 5,023 Income (loss) before income taxes $ 11,171 $ (4,767 ) $ — $ 6,404 Nine Months Ended September 30, 2020 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 46,654 $ 417,368 $ — $ 464,022 Net written premiums $ 46,654 $ 370,333 $ — $ 416,987 Net earned premiums $ 53,384 $ 373,233 $ — $ 426,617 Net investment income 17,336 11,324 (9,144 ) 19,516 Net realized investment losses (3,867 ) (18,465 ) — (22,332 ) Other income 148 1,325 — 1,473 Total revenues 67,001 367,417 (9,144 ) 425,274 Losses and Expenses: Net losses and loss adjustment expenses 12,874 229,218 — 242,092 Acquisition costs and other underwriting expenses 17,828 145,430 — 163,258 Corporate and other operating expenses 23,357 10,680 — 34,037 Interest expense 869 21,472 (9,144 ) 13,197 Loss on extinguishment of debt 3,060 — — 3,060 Income (loss) before income taxes $ 9,013 $ (39,383 ) $ — $ (30,370 ) Nine Months Ended September 30, 2019 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 69,588 $ 409,111 $ — $ 478,699 Net written premiums $ 69,591 $ 351,730 $ — $ 421,321 Net earned premiums $ 52,798 $ 330,804 $ — $ 383,602 Net investment income 22,254 20,824 (10,685 ) 32,393 Net realized investment gains 1,768 9,522 — 11,290 Other income (loss) (256 ) 1,530 — 1,274 Total revenues 76,564 362,680 (10,685 ) 428,559 Losses and Expenses: Net losses and loss adjustment expenses 24,076 177,903 — 201,979 Acquisition costs and other underwriting expenses 16,556 137,087 — 153,643 Corporate and other operating expenses 4,822 6,880 — 11,702 Interest expense 1,059 24,714 (10,685 ) 15,088 Income before income taxes $ 30,051 $ 16,096 $ — $ 46,147 The following table summarizes the components of income tax expense (benefit): Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2020 2019 2020 2019 Current income tax expense (benefit): Foreign $ 130 $ (17 ) $ 130 $ (35 ) U.S. Federal — — — — Total current income tax expense (benefit) 130 (17 ) 130 (35 ) Deferred income tax expense (benefit): U.S. Federal (3,339 ) (300 ) (8,303 ) 5,198 Total deferred income tax expense (benefit) (3,339 ) (300 ) (8,303 ) 5,198 Total income tax expense (benefit) $ (3,209 ) $ (317 ) $ (8,173 ) $ 5,163 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 September 30, 2020 2019 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average tax rate $ (1,985 ) 10.8 % $ (1,001 ) 15.6 % Adjustments: Tax exempt interest (1 ) — — — Dividend exclusion (86 ) 0.5 (33 ) 0.5 Non-deductible interest 416 (2.3 ) 695 (10.8 ) Change in tax status (1,704 ) 9.3 — — Parent income treated as partnership for tax (146 ) 0.8 — — Other 297 (1.6 ) 22 (0.3 ) Effective income tax benefit $ (3,209 ) 17.5 % $ (317 ) 5.0 % The effective income tax benefit rate for the quarter ended September 30, 2020 was 17.5%, compared with an effective income tax benefit rate of 5.0% for the quarter ended September 30, 2019. The increase in income tax benefit for the quarter ended September 30, 2020 was primarily due to higher pre-tax loss for the Company’s U.S. subsidiaries for the quarter ended September 30, 2020 Nine Months Ended September 30, 2020 2019 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average tax rate $ (8,270 ) 27.2 % $ 3,380 7.3 % Adjustments: Tax exempt interest (2 ) — (1 ) — Dividend exclusion (198 ) 0.6 (256 ) (0.6 ) Non-deductible interest 1,773 (5.8 ) 2,063 4.5 Change in tax status (1,704 ) 5.6 — — Parent income treated as partnership for tax (146 ) 0.5 — — Other 374 (1.2 ) (23 ) — Effective income tax expense (benefit) $ (8,173 ) 26.9 % $ 5,163 11.2 % The effective income tax benefit rate for the nine months ended September 30, 2020 was 26.9%, compared with an effective income tax expense rate of 11.2% for the nine months ended September 30, 2019. The increase in income tax benefit for the nine months ended September 30, 2020 was primarily due to a pre-tax loss for the Company’s U.S. subsidiaries for the nine months ended September 30, 2020 The Company has a net operating loss (“NOL”) carryforward of $24.9 million as of September 30, 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 $6.8 million and $9.0 million as of September 30, 2020 and December 31, 2019, respectively, 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 had an alternative minimum tax (“AMT”) credit carryforward of $11.0 million as of December 31, 2019. Under the provisions of the CARES Act, the Company filed a request for a full refund in 2020. The Company received $5.5 million and $ 11.0 million o f the AMT credit carryforward during the quarter and nine months ended September 30, 2020, respectively. |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | 8. Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2020 2019 2020 2019 Balance at beginning of period $ 651,073 $ 608,773 $ 630,181 $ 680,031 Less: Ceded reinsurance receivables 87,221 59,834 76,273 109,342 Net balance at beginning of period 563,852 548,939 553,908 570,689 Incurred losses and loss adjustment expenses related to: Current year 108,859 80,533 273,709 225,022 Prior years (11,711 ) (6,950 ) (31,617 ) (23,043 ) Total incurred losses and loss adjustment expenses 97,148 73,583 242,092 201,979 Paid losses and loss adjustment expenses related to: Current year 60,114 47,290 119,541 102,806 Prior years 29,612 20,789 105,185 115,419 Total paid losses and loss adjustment expenses 89,726 68,079 224,726 218,225 Net balance at end of period 571,274 554,443 571,274 554,443 Plus: Ceded reinsurance receivables 98,656 78,844 98,656 78,844 Balance at end of period $ 669,930 $ 633,287 $ 669,930 $ 633,287 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 third quarter of 2020, the Company reduced its prior accident year loss reserves by $11.7 million, which consisted of a $3.5 million decrease related to Commercial Specialty, a $2.0 million decrease related to Specialty Property, a $1.3 million decrease related to Farm, Ranch, & Stable, and a $4.9 million decrease related to Reinsurance Operations. The $3.5 million reduction of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • General Liability: A $2.5 million reduction in aggregate with $1.9 million of favorable development in the construction defect reserve category and $0.5 million of favorable development in the other general liability reserve categories. The reduction in the construction defect reserve category recognizes lower than expected claims frequency and severity in the 2005 through 2009 and 2012 accident years. For the other general liability reserve categories, lower than anticipated claims severity was the main driver of the favorable development primarily in the 1995, 2005, 2007 through 2012 and 2015 accident years, partially offset by increases in the 2016 through 2018 accident years. • Property: An increase of $0.1 million in the 2019 accident year was partially offset by decreases in the 2017 and 2018 accident years. • Professional: A $1.1 million decrease primarily in the 2006 through 2010 accident years reflects lower than expected claims severity. The $2.0 million decrease of prior accident year loss reserves related to Specialty Property primarily consisted of the following: • General Liability: A $0.2 million reduction primarily recognizes lower than expected claims severity in the 2017 and 2019 accident years. • Property: A $1.8 million decrease primarily in the 2017 accident year recognizes a reduction in the catastrophe reserve categories for subrogation recoveries from the California wildfires in the 2017 accident year. The $1.3 million reduction of prior accident year loss reserves related to Farm, Ranch, & Stable primarily consisted of the following: • Property: A $1.3 million decrease mainly recognizes a reduction in the catastrophe reserve category in the 2017 accident year for subrogation recoveries from the California wildfires and lower than anticipated claims severity in the 2018 accident year, partially offset by an increase in the 2019 accident year for the catastrophe reserve category. The $4.9 million decrease in prior accident year loss reserves related to Reinsurance Operations were based on a review of the experience reported from cedants. There was a $3.2 million decrease in the property lines primarily in the 2009 through 2012 and 2014 through 2018 accident years, partially offset by an increase in the 2019 accident year. In addition, there was a reduction of $1.7 million in the professional lines in the 2014 and 2015 accident years. During the third quarter of 2019, the Company reduced its prior accident year loss reserves by $7.0 million, which consisted of a $5.2 million decrease related to Commercial Specialty, $1.3 million decrease related to Specialty Property, $1.2 million decrease related to Farm, Ranch, & Stable, and a $0.7 million increase related to Reinsurance Operations. The $5.2 million reduction of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • General Liability: A $4.4 million reduction in aggregate with $0.5 million of favorable development in the construction defect reserve category and $3.9 million of favorable development in the other general liability reserve categories. The decreases in the construction defect reserve category recognize lower than expected claims severity primarily in the 2004 through 2009, 2011 and 2012 accident years, partially offset by increases in the 2010 and 2016 accident years. For the other general liability reserve categories, lower than anticipated claims severity was the primary driver of the favorable development mainly in accident years 1999 through 2014 accident years, partially offset by increases in the 2016 and 2017 accident years. • Commercial Auto Liability: A $0.6 million decrease in total, primarily in the 2012, 2013 and 2016 accident years. The decreases recognize lower than anticipated claims severity. The $1.3 million reduction of prior accident year loss reserves related to Specialty Property primarily consisted of the following: • General Liability: A $0.4 million decrease in aggregate primarily recognizes lower than anticipated claims severity mostly in the 2015, 2016 and 2018 accident years, partially offset by increases in the 2010, 2014 and 2017 accident years, recognizing higher than expected claims severity. • Property: A $0.9 million reduction recognizes an additional $0.6 million decrease in the catastrophe reserve category for anticipated subrogation recoveries from the California Camp wildfire loss in the 2018 accident year and a $0.2 million decrease in the 2017 accident year, mainly recognizing lower than expected claims severity. The $1.2 million reduction of prior accident year loss reserves related to Farm, Ranch, & Stable primarily consisted of the following: • Property: The $0.7 million increase in prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following: • Property: A $0.7 million increase primarily in the 2012 and 2015 through 2017 accident years, partially offset by decreases in the 2011, 2014 and 2018 accident years. The accident year changes were based on a review of the experience reported from cedants. During the first nine months of 2020, the Company reduced its prior accident year loss reserves by $31.6 million, which consisted of a $17.8 million decrease related to Commercial Specialty, a $6.6 million decrease related to Specialty Property, a $2.1 million decrease related to Farm, Ranch, & Stable, and a $5.1 million decrease related to Reinsurance Operations. The $17.8 million decrease in prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • General Liability: A $20.5 million reduction in aggregate with $6.6 million of favorable development in the construction defect reserve category and $13.9 million of favorable development in the other general liability reserve categories. The reduction in the construction defect reserve category primarily recognizes lower than expected claims frequency and severity in the 2005 through 2009, 2012, 2015 and 2017 accident years, slightly offset by an increase in the 2016 accident year. For the other general liability reserve categories, lower than anticipated claims severity was the main driver of the favorable development primarily in the 2005 through 2015 accident years, partially offset by increases in the 2016 through 2019 accident years. • Professional: A $1.9 million decrease mainly in the 2007 through 2010 and 2019 accident years recognizes lower than expected claims severity. • Commercial Auto Liability: A $1.0 million reduction primarily in the 2010 and 2012 through 2016 accident years recognizes lower than anticipated claims severity. • Workers Compensation: A $0.2 million decrease primarily in loss adjustment expense reserves in the 2012 and accident years prior to 2005. • Property: An increase of $5.8 million primarily recognizes higher than expected claims severity mainly in the 2017 through 2019 accident years. The bulk of the increase was in the 2018 accident year which reflects a higher estimated ultimate for Hurricane Michael. The increase in ultimate resulted from receiving additional information in the second quarter for a Property Brokerage claim. The $6.6 million decrease in prior accident year loss reserves related to Specialty Property primarily consisted of the following: • General Liability: A $2.0 million decrease primarily recognizes lower than expected claims severity mainly in the 2015 through 2019 accident years. • Property: The $2.1 million decrease in prior accident year loss reserves related to Farm, Ranch, & Stable primarily consisted of the following: • Property: A $2.0 million decrease mainly reflects lower than anticipated claims severity in the 2016 through 2018 accident years and a reduction in the catastrophe reserve category in the 2017 accident year for subrogation recoveries from the California wildfires, partially offset by an increase in the 2019 accident year. • General Liability: A $0.1 million decrease primarily recognizes lower than expected claims severity mainly in the 2015 through 2016 and 2018 through 2019 accident years, mostly offset by an increase in the 2013 accident year due to higher than anticipated claims severity. The $5.1 million decrease in prior accident year loss reserves related to Reinsurance Operations were based on a review of the experience reported from cedants. There was a $3.4 million decrease in the property lines primarily in the 2009 through 2010 and 2012 through 2017 accident years, partially offset by an increase in the 2019 accident year. In addition, there was a reduction of $1.7 million in the professional lines in the 2014 and 2015 accident years. During the first nine months of 2019, the Company reduced its prior accident year loss reserves by $23.0 million, which consisted of a $12.1 million decrease related to Commercial Specialty, $10.5 million decrease related to Specialty Property, $4.0 million decrease related to Farm, Ranch, & Stable, and a $3.5 million increase related to Reinsurance Operations. The $12.1 million reduction of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • General Liability: A $9.6 million reduction in aggregate with $1.0 million of favorable development in the construction defect reserve category and $8.6 million of favorable development in the other general liability reserve categories. The decreases in the construction defect reserve category recognize lower than expected claims frequency and severity in the 2004 through 2009, 2011 and 2012 accident years, partially offset by increases in the 2010 and 2016 accident years. For the other general liability reserve categories, lower than anticipated claims severity was the primary driver of the favorable development mainly in accident years 1999 through 2014, 2016 and 2017, partially offset by increases in the 2015 and 2018 accident years which reflects higher than expected claims severity. • Commercial Auto Liability: A $1.4 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 $0.9 million decrease in aggregate mainly recognizes lower than anticipated claims severity primarily in the 2012 through 2017 accident years, partially offset by increases in the 2010 and 2018 accident years. • Professional: A $1.1 million decrease primarily in the 2009 and 2010 accident years reflects lower than expected claims severity. • Reinsurance: A $1.0 million increase was recognized based on a review of expected ceded recoverables by reinsurer. The increase was primarily in the general liability reserve categories and older accident years. The $10.5 million reduction of prior accident year loss reserves related to Specialty Property primarily consisted of the following: • Property: A $10.1 million reduction recognizes an $8.9 million decrease in the catastrophe reserve category for subrogation recoveries from the California Camp wildfire loss in the 2018 accident year. The remaining $1.2 million decrease was primarily in the 2016 and 2017 accident years, mainly recognizing lower than expected claims severity. • General Liability: A $0.4 million decrease in aggregate primarily recognizes lower than anticipated claims severity mostly in the 2015 and 2016 accident years, partially offset by increases in the 2010 and 2017 accident years, recognizing higher than expected claims severity. The $4.0 million reduction of prior accident year loss reserves related to Farm, Ranch, & Stable primarily consisted of the following: • Liability: A $1.7 million decrease in total, mainly recognizes lower than expected claims severity in the 2016 and 2017 accident years, partially offset by increases in the 2013 through 2015 accident years. • Property: A $2.2 million reduction in aggregate recognizes a $2.0 million decrease in the 2018 accident year which is comprised of a $1.1 million decrease reflecting ceded recoveries from a second accident quarter catastrophe and a $0.9 million decrease reflecting lower than expected claims frequency and severity. Decreases in the 2015 through 2017 accident years primarily reflects lower than expected claims severity, partially offset by an increase in the 2013 accident year. The $3.5 million increase in prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following: • Property: A $3.8 million increase in aggregate reflects an increase of $7.6 million in the 2018 accident year for Typhoon Jebi and decreases totaling $4.1 million in the 2010 through 2017 accident years. • Professional: A $0.3 million decrease primarily in the 2008 and 2010 accident years, partially offset by an increase in the 2007 accident year based on a review of the experience reported from the cedants. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt The Company’s outstanding debt consisted of the following at September 30, 2020 and December 31, 2019: (Dollars in thousands) September 30, 2020 December 31, 2019 Margin Borrowing Facility $ — $ 73,629 7.75% Subordinated Notes due 2045 — 96,864 7.875% Subordinated Notes due 2047 126,253 126,147 Total $ 126,253 $ 296,640 Margin Borrowing Facility The Company has available a margin borrowing facility. The borrowing rate for this facility is tied to the Fed Funds Effective rate and was approximately 0.8% and 1.9% at September 30, 2020 and December 31, 2019, respectively. This facility is due on demand. The borrowings are subject to maintenance margin, which is a minimum account balance that must be maintained. A decline in market conditions could require an additional deposit of collateral. As of December 31, 2019, approximately $88.2 million in securities were deposited as collateral to support borrowings. The Company did not have any securities that were deposited as collateral at September 30, 2020. The amount borrowed against the margin account may fluctuate as routine investment transactions, such as dividends received, investment income received, maturities and pay-downs, impact cash balances. The margin facility contains customary events of default, including, without limitation, insolvency, failure to make required payments, failure to comply with any representations or warranties, failure to adequately assure future performance, and failure of a guarantor to perform under its guarantee. The amount outstanding on the Company’s margin borrowing facility was $73.6 million as of December 31, 2019. The Company did not have any amounts outstanding on the margin borrowing facility as of September 30, 2020. The Company recorded interest expense related to the Margin Borrowing Facility of approximately $0.1 million and $0.5 million for the quarters ended September 30, 2020 and 2019, respectively, and $0.5 million and $1.4 million for the nine months ended September 30, 2020 and 2019, respectively. 7.75% Subordinated Notes due 2045 The Company redeemed the entire $100 million in aggregate principal amount of the outstanding 7.75% Subordinated Notes due 2045 (“2045 Notes”) plus accrued and unpaid interest on the 2045 Notes redeemed to, but not including, the Redemption Date of August 15, 2020. In connection with the redemption, the Company wrote off deferred issuance costs of $3.1 million which is recognized as a loss on extinguishment of debt in its consolidated statements of operations for the quarter and nine months ended September 30, 2020. Interest expense, including amortization of deferred issuance costs through the date of redemption, recognized on the 2045 Notes was $1.0 million and $2.0 million for the quarters ended September 30, 2020 and 2019, respectively, and $4.9 million and $5.9 million for the nine months ended September 30, 2020 and 2019, respectively. 7.875% Subordinated Notes due 2047 On March 23, 2017, Global Indemnity Limited issued Subordinated Notes due in 2047 in the aggregate principal amount of $120.0 million through an underwritten public offering (the “2047 Notes”). Pursuant to the underwriting agreement, Global Indemnity Limited granted the underwriters a 30 day option to purchase up to an additional $18 million aggregate principal amount of the 2047 Notes solely to cover over-allotments, if any. On March 30, 2017, the underwriters exercised their over-allotment option in the amount of $10 million principal amount of the 2047 Notes. As a result, the aggregate principal amount of the 2047 Notes increased to $130.0 million. The sale of the 2047 Notes pursuant to the over-allotment option closed on March 30, 2017. The 2047 Notes bear interest at an annual rate equal to 7.875%, payable quarterly in arrears on January 15, April 15, July 15, and October 15 of each year, commencing July 15, 2017. The 2047 Notes mature on April 15, 2047. The Company has the right to redeem the 2047 Notes in $25 increments, in whole or in part, on and after April 15, 2022, or on any interest payment date thereafter, at a redemption price equal to 100 % of the principal amount of the 2047 Notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption. If the Company redeems only a portion of the 2047 Notes on any date of redemption, the Company may subsequently redeem additional 2047 Notes. The 2047 Notes are subordinated unsecured obligations and rank (i) senior to the Company’s existing and future capital stock, (ii) senior in right of payment to future junior subordinated debt, (iii) equally in right of payment with any existing unsecured, subordinated debt that the Company has issued or may issue in the future that ranks equally with the 2047 Notes, and (iv) subordinate in right of payment to any of the Company’s future senior debt. In addition, the 2047 Notes are structurally subordinated to all existing and future indebtedness, liabilities and other obligations of the Company’s subsidiaries including the Company’s margin borrowing facility. The 2047 Notes do not require the maintenance of any financial ratios or specified levels of net worth or liquidity, and do not contain provisions that would afford holders of the 2047 Notes protection in the event of a sudden and dramatic decline in the Company’s credit quality resulting from any highly leveraged transaction, reorganization, restructuring, merger or similar transaction involving the Company that may adversely affect holders. The 2047 Notes do not restrict the Company in any way, now or in the future, from incurring additional indebtedness, including senior indebtedness that would rank senior in right of payment to the 2047 Notes. There is no right of acceleration of maturity of the 2047 Notes in the case of default in the payment of principal, premium, if any, or interest on the 2047 Notes or in the performance of any other obligation of the Company under the notes or if the Company defaults on any other debt securities. Holders may accelerate payment of indebtedness on the 2047 Notes only upon the Company’s bankruptcy, insolvency or reorganization. The Company incurred $4.2 million in deferred issuance costs associated with the 2047 Notes, which is being amortized over the term of the 2047 Notes. Interest expense, including amortization of deferred issuance costs, recognized on the 2047 Notes was $2.6 million for each of the quarters ended September 30, 2020 and 2019 and $7.8 million for each of the nine months ended September 30, 2020 and 2019. The following table represents the amounts recorded for the subordinated notes as of September 30, 2020 and December 31, 2019: September 30, 2020 (Dollars in thousands) Outstanding Principal Unamortized Debt Issuance Costs Net Carrying Amount 7.875% Subordinated Notes due 2047 $ 130,000 $ (3,747 ) $ 126,253 $ 130,000 $ (3,747 ) $ 126,253 December 31, 2019 (Dollars in thousands) Outstanding Principal Unamortized Debt Issuance Costs Net Carrying Amount 7.75% Subordinated Notes due 2045 $ 100,000 $ (3,136 ) $ 96,864 7.875% Subordinated Notes due 2047 130,000 (3,853 ) 126,147 $ 230,000 $ (6,989 ) $ 223,011 Supplemental Indentures On August 28, 2020, in connection with the merger of Global Indemnity Limited with and into New Cayco, each of Global Indemnity Limited, as successor to Global Indemnity plc, an Irish public limited company, GBLI Holdings, LLC, a Delaware limited liability company, as co-obligor (the "Co-Obligor"), New CayCo, Wells Fargo Bank, National Association, as trustee (the "Original Trustee"), and U.S. Bank National Association, as series trustee of the 7.875% Subordinated Notes due 2047 (the "Series Trustee" and, together with the Original Trustee, the "Trustees") entered into a Fourth Supplemental Indenture, dated as of August 28, 2020 (the "Fourth Supplemental Indenture"), to the base indenture, dated as of August 12, 2015 (as supplemented, the "Indenture"). Pursuant to the Fourth Supplemental Indenture, New CayCo expressly assumed the obligations of G lobal Indemnity Limited under the Indenture, including the obligations of G lobal Indemnity Limited under the outstanding 2047 Notes issued pursuant to such Indenture. On August 28, 2020, in connection with the merger of New Cayco with and into Global Indemnity Group, LLC, each of New CayCo, the Co-Obligor, Global Indemnity Group, LLC and the Trustees entered into a Fifth Supplemental Indenture, dated as of August 28, 2020 (the "Fifth Supplemental Indenture"), to the Indenture. Pursuant to the Fifth Supplemental Indenture, Global Indemnity Group, LLC expressly assumed the obligations of New CayCo under the Indenture, including the obligations of New CayCo under the outstanding 2047 Notes issued pursuant to such Indenture. Co-obligor Transaction On April 25, 2018, GBLI Holdings, LLC, an indirect wholly owned subsidiary of the Company, became a subordinated co-obligor with respect to the 2045 Notes, which were fully redeemed in August 2020, and the 2047 Notes with the same obligations and duties as the Company under the Indenture (including the due and punctual performance and observance of all of the covenants and conditions to be performed by the Company, including, without limitation, the obligation to pay the principal of, and interest on, the 2047 Notes when due whether at maturity, by acceleration, redemption or otherwise), and with the same rights, benefits and privileges of the Company thereunder. Notwithstanding the foregoing, GBLI Holdings, LLC's obligations (including the obligation to pay the principal of and interest in respect of the 2047 Notes) are subject to subordination to all monetary obligations or liabilities of GBLI Holdings, LLC owing to any regulated reinsurance or insurance company that is a direct or indirect subsidiary of the Company, in addition to indebtedness of GBLI Holdings, LLC for borrowed money. If the Company pays any amount with respect to the subordinated note obligations, the Company is entitled to be reimbursed by GBLI Holdings, LLC within 10 business days after a demand is made to GBLI Holding, LLC by the Company. In consideration for becoming a subordinated co-obligor on the subordinated notes, GBLI Holdings, LLC received a promissory note from Global Indemnity Limited with a principal amount of $230 million due April 15, 2047 that has since been assigned to an affiliate. This promissory note was settled in August 2020. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | 10. On August 28, 2020, Global Indemnity Limited completed the previously disclosed scheme of arrangement and amalgamation that effected certain transactions (the "Redomestication") that resulted in the shareholders of Global Indemnity Limited becoming the holders of all of the issued and outstanding common shares of the Company. Please see Note 2 for details on the redomestication. The treasury shares of Global Indemnity Limited were not subject to the scheme of arrangement. The carrying value of the Global Indemnity Limited treasury shares, $4.1 million, were offset against the Additional Paid-in Capital account of Global Indemnity Limited, according to the Company’s policy regarding the treatment of treasury shares. Please see Note 2 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 policy regarding the treatment of treasury shares. Issuance of Preferred Shares On August 27, 2020, the Company issued and sold to Wyncote LLC (“Wyncote”), an affiliate of Fox Paine & Company, LLC, 4,000 Series A Preferred Interests at a price of $1,000 per Series A Preferred Interest, for the aggregate purchase price of $4,000,000. The issuance of Series A Preferred Interests to Wyncote was made pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act. The Series A Preferred Interests are not convertible into or exchangeable for any other securities or property of the Company. The shares are redeemable at the discretion of the Company after five years or at the discretion of the holders upon the occurrence of a change in control of the Company. While the preferred shares are non-voting, the preferred shareholders are entitled to appoint two additional members to the Company’s Board of Directors whenever the “Unpaid Targeted Priority Return” (as defined in the applicable Share Designation) with respect to the preferred shares exceed zero immediately following six or more “Distribution Dates” (as defined in the applicable Share Designation), whether or not such Distribution Dates occur consecutively. Following the Effective Time, all of the issued and outstanding Series A Preferred Interests sold to Wyncote remain outstanding as "Series A Cumulative Fixed Rate Preferred Shares", unaffected by the Scheme of Arrangement and subject to the terms of the Second Amended and Restated Limited Liability Company Agreement of the Company (the “ LLC Agreement ”) and that certain Share Designation, effective as of the Effective Time, that sets forth the designation, rights, preferences, powers, duties, restrictions, limitations and obligations of the Series A Cumulative Fixed Rate Preferred Shares from and after the Effective Time. The following table provides information with respect to the class A common shares that were surrendered or repurchased during the quarter ended September 30, 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 August 1-31, 2020 396 (2) $ 24.95 — — Total 396 $ 24.95 — (1) Based on settlement date. (2) Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. There were no class A commons shares that were surrendered or repurchased during the quarter ended September 30, 2019. The following table provides information with respect to the class A common shares that were surrendered or repurchased during the nine months ended September 30, 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 — — August 1-31, 2020 396 $ 24.95 — — Total 5,120 $ 29.74 — (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 class A common shares that were surrendered or repurchased during the nine months ended September 30, 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 class B common shares that were surrendered or repurchased during the quarters and nine months ended September 30, 2020 or 2019. As of September 30, 2020, the Company’s class A common shares were held by approximately 190 shareholders of record. There were four holders of record of the Company’s class B common shares, all of whom are affiliated investment funds of Fox Paine & Company, LLC, as of September 30, 2020. The Company’s preferred shares were held by 1 holder of record, an affiliate of Fox Paine & Company, LLC, as of September 30, 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 / Distributions Dividend & distribution payments of $0.25 per common share were declared during the nine months ended September 30, 2020 as follows: Approval Date Record Date Payment Date Total Dividends / Distributions Declared (Dollars in thousands) February 9, 2020 (1) March 24, 2020 March 31, 2020 $ 3,539 June 7, 2020 (1) June 23, 2020 June 30, 2020 3,545 September 13, 2020 (2) September 25, 2020 September 30, 2020 3,552 Various (3) Various Various 337 Total $ 10,973 (1) Represents dividend payments (2) Represents distribution / return of capital payments (3) Represents dividends / distributions declared on unvested shares, net of forfeitures. Dividend payments of $0.25 per common share were declared during the nine months ended September 30, 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 June 2, 2019 June 21, 2019 June 28, 2019 3,525 September 15, 2019 September 26, 2019 October 2, 2019 3,528 Various (1) Various Various 191 Total $ 10,765 (1) Represents dividends declared on unvested shares, net of forfeitures. As of September 30, 2020 and December 31, 2019, accrued distributions on unvested shares, which were included in other liabilities on the consolidated balance sheets, were $0.6 million and $0.3 million, respectively. Accrued preferred distributions were less than $0.1 million as of September 30, 2020 and were included in other liabilities on the consolidated balance sheets. 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 | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 1 1 . Related Party Transactions Fox Paine Entities As of September 30, 2020, Fox Paine Capital Fund II International, L.P. and certain of its affiliates (collectively, the “Fox Paine Funds”), which are managed by Fox Paine & Company, LLC, beneficially own approximately 77.5% of the Company’s total voting power. As of September 30, 2020, Fox Mercury Investments, L.P. and certain of its affiliates (collectively, the “FM Entities”) separately beneficially own approximately 4.8% 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 power in 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 a majority of the outstanding class B common shares of the Company and shares representing an aggregate 25% or more of the total voting power in the Company. The Fox Paine Funds control the election of all of the Company’s Directors due to their controlling share ownership. The Company’s Chairman is the chief executive and founder of Fox Paine & Company, LLC. On August 27, 2020, the Company issued and sold to Wyncote LLC, an affiliate of Fox Paine & Company, LLC, 4,000 Series A Cumulative Fixed Rate Preferred Interests at a price of $1,000 per Series A Preferred Interest, for the aggregate purchase price of $4,000,000. While the preferred shares are non-voting, the preferred shareholders are entitled to appoint two additional members to the Company’s Board of Directors whenever the “Unpaid Targeted Priority Return” with respect to the preferred shares exceed zero immediately following six or more “Distribution Dates”, whether or not such Distribution Dates occur consecutively. See Note 10 for additional information on the Series A Cumulative Fixed Rate Preferred Interests. 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. On May 6, 2020, Global Indemnity Limited and Fox Paine & Company, LLC entered into the Second Amended and Restated Management Agreement, effective as of September 5, 2019 (the “Management 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 Management Agreement in 2013), and (ii) increase Fox Paine & Company, LLC’s base Annual Service Fee by $550,000 per year. On August 28, 2020, in connection with the Redomestication, the Company and Fox Paine & Company, LLC entered into the Third Amended and Restated Management Agreement effective as of August 28, 2020 (the “Management Agreement”). The Management Agreement amends and restates the Second Amended and Restated Management Agreement, dated as of May 6, 2020, between Fox Paine & Company, LLC and Global Indemnity Limited, to reflect the assumption by Global Indemnity Group, LLC of the obligations under the Management Agreement and to make related conforming changes and immaterial modifications to the Management Agreement. Management fee expense of $0.6 million and $0.5 million was incurred during the quarters ended September 30, 2020 and 2019, respectively, and management fee expense of $2.0 million and $1.5 million was incurred during the nine months ended September 30, 2020 and 2019, respectively. Prepaid management fees, which were included in other assets on the consolidated balance sheets, were $2.5 million and $1.4 million as of September 30, 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 Conflicts Committee of the Board of Directors or Global Indemnity Limited’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 Conflicts Committee or 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 Conflicts Committee and was not a member of Global Indemnity Limited’s Audit Committee and recused himself from the Board of Directors’ deliberations). Illiquid Investment Fund Divestiture Fee On December 21, 2018, GBLI Holdings, LLC exited an investment in a private credit fund pursuant to a sale of GBLI Holdings, LLC’s investment to third parties at par plus accrued interest. Fox Paine & Company, LLC provided services to GBLI Holdings, LLC in connection with the sale, including conducting due diligence to evaluate the private fund, recommending that GBLI Holdings, LLC withdraw from the private fund, and conducting extended negotiations with the private fund to secure GBLI Holdings, LLC’s withdrawal from the private fund on favorable terms. Fox Paine & Company, LLC’s services for GBLI Holdings, 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 accrued in the 4 th Redomestication Fee Pursuant to the Management Agreement, Fox Paine & Company, LLC performed extensive financial advisory services for the Company in connection with the conceptualization, design, structuring and implementation of the redomestication plan. In accordance with the Management Agreement, Fox Paine & Company, LLC may propose and negotiate advisory fees for such services with the Company, subject to the provisions of the Company’s related party transaction policies. The Company agreed to pay an advisory fee to Fox Paine & Company, LLC for such services in an amount of $10.0 million, which was accrued at September 30, 2020, and will be paid in a subsequent period. The $10.0 million fee was approved by the Conflicts Committee. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. 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 September 30, 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 September 30, 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 September 30, 2020, the Company has fully funded this commitment. 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 1 1 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 | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Plans | 1 3 . Share-Based Compensation Plans In connection with the Redomestication, the 2018 Share Incentive Plan was amended and restated to reflect Global Indemnity Group, LLC’s assumption of the sponsorship of the plan and other changes deemed necessary and appropriate to reflect the completion of the Redomestication. Options No stock options were awarded during the quarters and nine months ended September 30, 2020 and 2019. No unvested stock options were forfeited during the quarters and nine months ended September 30, 2020 or 2019. Restricted Shares / Restricted Stock Units There were no restricted class A common shares granted to key employees during the quarters ended September 30, 2020 and 2019 or the nine months ended September 30, 2020. During the nine months ended September 30, 2019, the Company granted 36,180 restricted class A common 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. 27,117 of these shares will vest as follows: • 16.5% • 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 There were no restricted stock units granted to key employees during the quarter ended September 30, 2020 and 2019. During the nine months ended September 30, 2020, the Company granted 161,238 restricted stock units, with a weighted average grant date value of $30.32 per share, to key employees under the Plan. 3,375 of these restricted stock units will vest evenly over the next three years on January 1, 2021, January 1, 2022 and January 1, 2023. 66,957 of these restricted stock units will vest as follows: • 10.0 The remaining 90,906 restricted stock units will vest as follows: • 16.5% • 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. During the nine months ended September 30, 2019, the Company granted 175,498 restricted stock units, with a weighted average grant date value of $30.18 per unit, to key employees under the Plan. These restricted stock units will vest as follows: • 10.0% During the quarters ended September 30, 2020 and 2019, the Company granted 29,893 and 19,275 class A common shares, respectively, at a weighted average grant date value of $22.58 and $24.97 per share, respectively, to non-employee directors of the Company under the Plan. During the nine months ended September 30, 2020 and 2019, the Company granted 81,502 and 50,661 class A common shares, respectively, at a weighted average grant date value of $24.85 and $28.50 per share, respectively, to non-employee directors of the Company under the Plan. All of these shares granted to non-employee directors of the Company in 2020 and 2019 were fully vested but are subject to certain restrictions. During the quarter and nine months ended September 30, 2020, the Company also granted 41,667 restricted stock units to a non-employee director that vest ratably over three years on January 1, 2022, January 1, 2023, and January 1, 2024. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 14. Earnings per share have been computed using the weighted average number of common shares and common share equivalents outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands, except share and per share data) 2020 2019 2020 2019 Numerator: Net income (loss) $ (15,170 ) $ 6,721 $ (22,197 ) $ 40,984 Less: preferred stock distributions 42 — 42 — Net income (loss) available to common shareholders $ (15,212 ) $ 6,721 $ (22,239 ) $ 40,984 Denominator: Weighted average shares for basic earnings per share 14,304,426 14,202,859 14,276,594 14,181,530 Non-vested restricted stock — 23,059 — 19,201 Non-vested restricted stock units — — — 2,954 Options — 101,839 — 125,176 Weighted average shares for diluted earnings per share (1) 14,304,426 14,327,757 14,276,594 14,328,861 Earnings per share - Basic $ (1.06 ) $ 0.47 $ (1.56 ) $ 2.89 Earnings per share - Diluted $ (1.06 ) $ 0.47 $ (1.56 ) $ 2.86 (1) For the quarter and nine months ended September 30, 2020, weighted average shares outstanding – basic was used to calculate diluted earnings per share due to a net loss for these periods. If the Company had not incurred a loss in the quarter ended September 30, 2020, 14,444,326 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 18,218 shares of non-vested restricted stock, 48,846 shares of non-vested restricted stock units, and 72,836 share equivalents for options. If the Company had not incurred a loss in the nine months ended September 30, 2020, 14,421,393 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 15,366 shares of non-vested restricted stock, 36,796 shares of non-vested restricted stock units, and 92,637 share equivalents for options. The weighted average shares outstanding used to determine dilutive earnings per share does not include 572,957 shares for the quarter and nine months ended September 30, 2020 and 500,000 shares for the quarter and nine months ended September 30, 2019 which were deemed to be anti-dilutive. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 1 5 . 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 and nine months ended September 30, 2020 and 2019: Quarter Ended September 30, 2020 (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 74,971 $ 34,730 $ 19,443 $ 14,605 $ 143,749 Net written premiums $ 69,074 $ 29,971 $ 16,961 $ 14,605 $ 130,611 Net earned premiums $ 73,887 $ 31,388 $ 19,978 $ 15,049 $ 140,302 Other income — 450 35 112 597 Total revenues 73,887 31,838 20,013 15,161 140,899 Losses and Expenses: Net losses and loss adjustment expenses 42,879 34,430 14,649 5,190 97,148 Acquisition costs and other underwriting expenses 26,943 13,364 7,443 5,518 53,268 Income (loss) from segments $ 4,065 $ (15,956 ) $ (2,079 ) $ 4,453 $ (9,517 ) Unallocated Items: Net investment income 11,746 Net realized investment gains 7,323 Other loss (55 ) Corporate and other operating expenses (21,196 ) Interest expense (3,620 ) Loss on extinguishment of debt (3,060 ) Loss before income taxes (18,379 ) Income tax benefit 3,209 Net loss (15,170 ) Segment assets $ 752,002 $ 207,831 $ 137,697 $ 269,771 $ 1,367,301 Corporate assets 572,456 Total assets $ 1,939,757 (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 September 30, 2019 (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 73,175 $ 42,611 $ 21,410 $ 19,981 $ 157,177 Net written premiums $ 62,925 $ 37,628 $ 18,294 $ 19,989 $ 138,836 Net earned premiums $ 60,869 $ 34,554 $ 18,377 $ 19,512 $ 133,312 Other income (loss) — 465 34 (235 ) 264 Total revenues 60,869 35,019 18,411 19,277 133,576 Losses and Expenses: Net losses and loss adjustment expenses 27,389 25,997 10,939 9,258 73,583 Acquisition costs and other underwriting expenses 24,820 14,571 7,776 6,199 53,366 Income (loss) from segments $ 8,660 $ (5,549 ) $ (304 ) $ 3,820 $ 6,627 Unallocated Items: Net investment income 11,348 Net realized investment loss (2,690 ) Corporate and other operating expenses (3,858 ) Interest expense (5,023 ) Income before income taxes 6,404 Income tax benefit 317 Net income 6,721 Segment assets $ 705,260 $ 246,080 $ 136,420 $ 346,137 $ 1,433,897 Corporate assets 650,259 Total assets $ 2,084,156 (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. Nine Months Ended September 30, 2020 (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 243,099 $ 107,951 $ 64,798 $ 48,174 $ 464,022 Net written premiums $ 219,437 $ 93,053 $ 56,323 $ 48,174 $ 416,987 Net earned premiums $ 211,329 $ 99,147 $ 57,691 $ 58,450 $ 426,617 Other income — 1,306 107 96 1,509 Total revenues 211,329 100,453 57,798 58,546 428,126 Losses and Expenses: Net losses and loss adjustment expenses 109,191 65,619 37,698 29,584 242,092 Acquisition costs and other underwriting expenses 79,452 41,357 22,687 19,762 163,258 Income (loss) from segments $ 22,686 $ (6,523 ) $ (2,587 ) $ 9,200 $ 22,776 Unallocated Items: Net investment income 19,516 Net realized investment loss (22,332 ) Other loss (36 ) Corporate and other operating expenses (34,037 ) Interest expense (13,197 ) Loss on extinguishment of debt (3,060 ) Loss before income taxes (30,370 ) Income tax benefit 8,173 Net loss (22,197 ) Segment assets $ 752,002 $ 207,831 $ 137,697 $ 269,771 $ 1,367,301 Corporate assets 572,456 Total assets $ 1,939,757 (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. Nine Months Ended September 30, 2019 (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 214,467 $ 128,771 $ 65,872 $ 69,589 $ 478,699 Net written premiums $ 185,202 $ 110,668 $ 55,861 $ 69,590 $ 421,321 Net earned premiums $ 173,215 $ 104,740 $ 52,849 $ 52,798 $ 383,602 Other income (loss) — 1,406 96 (228 ) 1,274 Total revenues 173,215 106,146 52,945 52,570 384,876 Losses and Expenses: Net losses and loss adjustment expenses 81,731 57,611 32,203 30,434 201,979 Acquisition costs and other underwriting expenses 70,522 44,163 22,403 16,555 153,643 Income (loss) from segments $ 20,962 $ 4,372 $ (1,661 ) $ 5,581 $ 29,254 Unallocated Items: Net investment income 32,393 Net realized investment gain 11,290 Corporate and other operating expenses (11,702 ) Interest expense (15,088 ) Income before income taxes 46,147 Income tax expense (5,163 ) Net income 40,984 Segment assets $ 705,260 $ 246,080 $ 136,420 $ 346,137 $ 1,433,897 Corporate assets 650,259 Total assets $ 2,084,156 (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 | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries | 16. Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries The following tables present condensed consolidating balance sheets at September 30, 2020 and December 31, 2019, condensed consolidating statements of operations and condensed consolidating statements of comprehensive income for the quarters and nine months ended September 30, 2020 and 2019 and condensed consolidating statements of cash flows for the nine months ended September 30, 2020 and 2019. GBLI Holdings, LLC is a 100% owned subsidiary of the Company. See Note 9 for information on the Company’s debt obligations. Condensed Consolidating Balance Sheets at September 30, 2020 (Dollars in thousands) Global Indemnity Group, LLC (Parent co- obligor) GBLI Holdings, LLC (Subsidiary co-obligor) Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Group, LLC Consolidated ASSETS Total investments $ 212,050 $ 48,940 $ 1,156,475 $ — $ 1,417,465 Cash and cash equivalents 13,765 2,575 20,871 — 37,211 Investments in subsidiaries 491,851 387,913 339,384 (1,219,148 ) — Due from subsidiaries and affiliates (3,999 ) (7,522 ) 11,521 — — Notes receivable – affiliate 11,283 — — (11,283 ) — Interest receivable – affiliate 16 — — (16 ) — Premiums receivable, net — — 109,820 — 109,820 Reinsurance receivables, net — — 112,633 — 112,633 Funds held by ceding insurers — — 46,894 — 46,894 Federal income taxes receivable — 2,892 (2,892 ) — — Deferred federal income taxes — 38,805 (3,505 ) — 35,300 Deferred acquisition costs — — 67,470 — 67,470 Intangible assets — — 21,094 — 21,094 Goodwill — — 6,521 — 6,521 Prepaid reinsurance premiums — — 15,558 — 15,558 Other assets 13,240 19,444 40,854 (3,747 ) 69,791 Total assets $ 738,206 $ 493,047 $ 1,942,698 $ (1,234,194 ) $ 1,939,757 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Unpaid losses and loss adjustment expenses $ — $ — $ 669,930 $ — $ 669,930 Unearned premiums — — 304,074 — 304,074 Ceded balances payable — — 9,576 — 9,576 Payable for Securities 2,207 — 3,423 — 5,630 Contingent commissions — — 11,329 — 11,329 Debt — 130,000 — (3,747 ) 126,253 Notes payable – affiliates — — 11,283 (11,283 ) — Accrued interest payable – affiliates — — 16 (16 ) — Other liabilities 15,286 23,663 53,303 — 92,252 Total liabilities 17,493 153,663 1,062,934 (15,046 ) 1,219,044 Shareholders’ equity Total shareholders’ equity 720,713 339,384 879,764 (1,219,148 ) 720,713 Total liabilities and shareholders’ equity $ 738,206 $ 493,047 $ 1,942,698 $ (1,234,194 ) $ 1,939,757 (1) Includes all other subsidiaries of Global Indemnity Group, LLC 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) GBLI Holdings, 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 September 30, 2020 (Dollars in thousands) Global Indemnity Group, LLC (Parent co-obligor)(3) GBLI Holdings, LLC (Subsidiary co-obligor) Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Group, LLC Consolidated Revenues: Net earned premiums $ — $ — $ 140,302 $ — $ 140,302 Net investment income 1,300 4,642 5,976 (172 ) 11,746 Net realized investment gains 451 4,107 2,765 — 7,323 Other income (loss) (1 ) — 543 — 542 Total revenues 1,750 8,749 149,586 (172 ) 159,913 Losses and Expenses: Net losses and loss adjustment expenses — — 97,148 — 97,148 Acquisition costs and other underwriting expenses — — 53,268 — 53,268 Corporate and other operating expenses 17,324 3,662 210 — 21,196 Interest expense 179 3,569 44 (172 ) 3,620 Loss on extinguishment of debt 3,060 — — — 3,060 Income (loss) before equity in net income (loss) of subsidiaries and income taxes (18,813 ) 1,518 (1,084 ) — (18,379 ) Equity in net income (loss) of subsidiaries 3,643 (10,312 ) (5,784 ) 12,453 — Loss before income taxes (15,170 ) (8,794 ) (6,868 ) 12,453 (18,379 ) Income tax benefit — (3,010 ) (199 ) — (3,209 ) Net loss $ (15,170 ) $ (5,784 ) $ (6,669 ) $ 12,453 $ (15,170 ) (1) Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments (3) Includes activity for Global Indemnity Limited from July 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 Condensed Consolidating Statements of Operations for the Quarter Ended September 30, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) GBLI Holdings, 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 $ — $ — $ 133,312 $ — $ 133,312 Net investment income 393 2,798 8,442 (285 ) 11,348 Net realized investment gains (losses) (101 ) (3,525 ) 936 — (2,690 ) Other income — — 264 — 264 Total revenues 292 (727 ) 142,954 (285 ) 142,234 Losses and Expenses: Net losses and loss adjustment expenses — — 73,583 — 73,583 Acquisition costs and other underwriting expenses — — 53,366 — 53,366 Corporate and other operating expenses 1,320 2,159 379 — 3,858 Interest expense 278 4,957 73 (285 ) 5,023 Income (loss) before equity in net income (loss) of subsidiaries and income taxes (1,306 ) (7,843 ) 15,553 — 6,404 Equity in net income (loss) of subsidiaries 8,027 1,699 (4,462 ) (5,264 ) — Income (loss) before income taxes 6,721 (6,144 ) 11,091 (5,264 ) 6,404 Income tax expense (benefit) — (1,682 ) 1,365 — (317 ) Net income (loss) $ 6,721 $ (4,462 ) $ 9,726 $ (5,264 ) $ 6,721 (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 Nine Months Ended September 30, 2020 (Dollars in thousands) Global Indemnity Group, LLC (Parent co-obligor)(3) GBLI Holdings, LLC (Subsidiary co-obligor) Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Group, LLC Consolidated Revenues: Net earned premiums $ — $ — $ 426,617 $ — $ 426,617 Net investment income (loss) 1,898 (3,870 ) 22,203 (715 ) 19,516 Net realized investment gains (losses) (2,295 ) (36,600 ) 16,563 — (22,332 ) Other income (loss) (1 ) 19 1,455 — 1,473 Total revenues (398 ) (40,451 ) 466,838 (715 ) 425,274 Losses and Expenses: Net losses and loss adjustment expenses — — 242,092 — 242,092 Acquisition costs and other underwriting expenses — — 163,258 — 163,258 Corporate and other operating expenses 23,466 10,143 428 — 34,037 Interest expense 732 13,005 175 (715 ) 13,197 Loss on extinguishment of debt 3,060 — — — 3,060 Income (loss) before equity in net income (loss) of subsidiaries and income taxes (27,656 ) (63,599 ) 60,885 — (30,370 ) Equity in net income (loss) of subsidiaries 5,459 22,509 (25,649 ) (2,319 ) — Income (loss) before income taxes (22,197 ) (41,090 ) 35,236 (2,319 ) (30,370 ) Income tax expense (benefit) — (15,441 ) 7,268 — (8,173 ) Net income (loss) $ (22,197 ) $ (25,649 ) $ 27,968 $ (2,319 ) $ (22,197 ) (1) Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments (3) Includes activity for Global Indemnity Limited from January 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 Condensed Consolidating Statements of Operations for the Nine Months Ended September 30, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) GBLI Holdings, 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 $ — $ — $ 383,602 $ — $ 383,602 Net investment income 1,764 5,743 25,747 (861 ) 32,393 Net realized investment gains 298 7,969 3,023 — 11,290 Other income — 30 1,244 — 1,274 Total revenues 2,062 13,742 413,616 (861 ) 428,559 Losses and Expenses: Net losses and loss adjustment expenses — — 201,979 — 201,979 Acquisition costs and other underwriting expenses — — 153,643 — 153,643 Corporate and other operating expenses 4,306 6,406 990 — 11,702 Interest expense 829 14,875 245 (861 ) 15,088 Income (loss) before equity in net income of subsidiaries and income taxes (3,073 ) (7,539 ) 56,759 — 46,147 Equity in net income of subsidiaries 44,057 16,597 10,903 (71,557 ) — Income before income taxes 40,984 9,058 67,662 (71,557 ) 46,147 Income tax expense (benefit) — (1,845 ) 7,008 — 5,163 Net income $ 40,984 $ 10,903 $ 60,654 $ (71,557 ) $ 40,984 (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 (Loss) for the Quarter Ended September 30, 2020 (Dollars in thousands) Global Indemnity Group, LLC (Parent co-obligor)(3) GBLI Holdings, LLC (Subsidiary co-obligor) Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Group, LLC Consolidated Net loss $ (15,170 ) $ (5,784 ) $ (6,669 ) $ 12,453 $ (15,170 ) Other comprehensive income, net of tax: Unrealized holding gains (losses) (1,310 ) (1,049 ) 1,911 — (448 ) Equity in other comprehensive income of unconsolidated subsidiaries (561 ) 1,596 603 (1,638 ) — Reclassification adjustment for gains included in net income (102 ) 56 (2,058 ) — (2,104 ) Unrealized foreign currency translation gains — — 579 — 579 Other comprehensive income, net of tax (1,973 ) 603 1,035 (1,638 ) (1,973 ) Comprehensive loss, net of tax $ (17,143 ) $ (5,181 ) $ (5,634 ) $ 10,815 $ (17,143 ) (1) Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments (3) Includes activity for Global Indemnity Limited from July 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Quarter Ended September 30, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) GBLI Holdings, 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) $ 6,721 $ (4,462 ) $ 9,726 $ (5,264 ) $ 6,721 Other comprehensive income, net of tax: Unrealized holding gains (losses) — — 9,421 — 9,421 Equity in other comprehensive income of unconsolidated subsidiaries 8,772 4,711 4,703 (18,186 ) — Portion of other-than-temporary impairment losses recognized in other comprehensive income — — (2 ) — (2 ) Reclassification adjustment for gains included in net income — (8 ) (839 ) — (847 ) Unrealized foreign currency translation losses — — 200 — 200 Other comprehensive income, net of tax 8,772 4,703 13,483 (18,186 ) 8,772 Comprehensive income, net of tax $ 15,493 $ 241 $ 23,209 $ (23,450 ) $ 15,493 (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 (Loss) for the Nine Months Ended September 30, 2020 (Dollars in thousands) Global Indemnity Group, LLC (Parent co-obligor)(3) GBLI Holdings, LLC (Subsidiary co-obligor) Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Group, LLC Consolidated Net income (loss) $ (22,197 ) $ (25,649 ) $ 27,968 $ (2,319 ) $ (22,197 ) Other comprehensive income, net of tax: Unrealized holding gains 322 (257 ) 30,683 — 30,748 Equity in other comprehensive income (loss) of unconsolidated subsidiaries 17,891 8,643 8,405 (34,939 ) — Reclassification adjustment for (gains) losses included in net income (102 ) 19 (13,122 ) — (13,205 ) Unrealized foreign currency translation gains — — 568 — 568 Other comprehensive income, net of tax 18,111 8,405 26,534 (34,939 ) 18,111 Comprehensive income (loss), net of tax $ (4,086 ) $ (17,244 ) $ 54,502 $ (37,258 ) $ (4,086 ) (1) Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments (3) Includes activity for Global Indemnity Limited from January 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine Months Ended September 30, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) GBLI Holdings, 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 $ 40,984 $ 10,903 $ 60,654 $ (71,557 ) $ 40,984 Other comprehensive income, net of tax: Unrealized holding gains 880 1,567 46,436 — 48,883 Equity in other comprehensive income (loss) of unconsolidated subsidiaries 46,226 24,201 26,003 (96,430 ) — Portion of other-than-temporary impairment losses recognized in other comprehensive losses — — (4 ) — (4 ) Reclassification adjustment for (gains) losses included in net income (561 ) 235 (2,339 ) — (2,665 ) Unrealized foreign currency translation gains — — 331 — 331 Other comprehensive income, net of tax 46,545 26,003 70,427 (96,430 ) 46,545 Comprehensive income, net of tax $ 87,529 $ 36,906 $ 131,081 $ (167,987 ) $ 87,529 (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 Nine Months Ended September 30, 2020 (Dollars in thousands) Global Indemnity Group, LLC (Parent co-obligor)(2) GBLI Holdings, LLC (Subsidiary co-obligor) Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Global Indemnity Group, LLC Consolidated Cash flows from operating activities: Net cash provided by (used for) operating activities $ (10,423 ) $ 1,526 $ 42,833 $ 33,936 Cash flows from investing activities: Proceeds from sale of fixed maturities 18,451 36,898 545,613 600,962 Proceeds from sale of equity securities 103,002 460,924 — 563,926 Proceeds from maturity of fixed maturities 280 — 89,595 89,875 Proceeds from other invested assets 1,700 123 — 1,823 Amounts paid in connection with derivatives — (20,130 ) — (20,130 ) Purchases of fixed maturities (185,692 ) (50,283 ) (466,752 ) (702,727 ) Purchases of equity securities (107,228 ) (286,735 ) — (393,963 ) Purchases of other invested assets — (297 ) — (297 ) Net cash provided by (used for) investing activities (169,487 ) 140,500 168,456 139,469 Cash flows from financing activities: Net borrowings under margin borrowing facility — (73,629 ) — (73,629 ) Proceeds (repayment) of note to affiliates — 5,049 (5,049 ) — Dividends paid to shareholders (10,683 ) — — (10,683 ) Issuance of series A cumulative fixed rate preferred shares 4,000 — — 4,000 Dividends from subsidiaries 226,000 — (226,000 ) — Capital contribution (26,466 ) 26,466 — — Purchase of class A common shares (153 ) — — (153 ) Redemption of subordinated notes — (100,000 ) — (100,000 ) Net cash provided by (used for) financing activities 192,698 (142,114 ) (231,049 ) (180,465 ) Net change in cash and cash equivalents 12,788 (88 ) (19,760 ) (7,060 ) Cash and cash equivalents at beginning of period 977 2,663 40,631 44,271 Cash and cash equivalents at end of period $ 13,765 $ 2,575 $ 20,871 $ 37,211 (1) Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations (2) Includes activity for Global Indemnity Limited from January 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 Condensed Consolidating Statements of Cash Flows for the Nine Months Ended September 30, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) GBLI Holdings, 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 operating activities $ 1,718 $ 2,593 $ 41,619 $ 45,930 Cash flows from investing activities: Proceeds from sale of fixed maturities 48,393 101,525 492,131 642,049 Proceeds from sale of equity securities 7,300 198,912 — 206,212 Proceeds from maturity of fixed maturities — — 113,480 113,480 Proceeds from other invested assets 3,161 11,040 — 14,201 Amounts paid in connection with derivatives — (12,516 ) — (12,516 ) Purchases of fixed maturities (10,548 ) (24,280 ) (666,856 ) (701,684 ) Purchases of equity securities (40,564 ) (285,408 ) — (325,972 ) Purchases of other invested assets — (3,500 ) — (3,500 ) Net cash provided by (used for) investing activities 7,742 (14,227 ) (61,245 ) (67,730 ) Cash flows from financing activities: Net borrowings under margin borrowing facility — 8,561 — 8,561 Dividends paid to shareholders (7,130 ) — — (7,130 ) Purchase of class A common shares (947 ) — — (947 ) Net cash provided by (used for) financing activities (8,077 ) 8,561 — 484 Net change in cash and cash equivalents 1,383 (3,073 ) (19,626 ) (21,316 ) Cash and cash equivalents at beginning of period 2,221 26,039 71,237 99,497 Cash and cash equivalents at end of period $ 3,604 $ 22,966 $ 51,611 $ 78,181 (1) Includes all other subsidiaries of Global Indemnity Limited and eliminations |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 1 7 . 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 3. 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 3 and Note 6. 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. |
Principles of Consolidation a_2
Principles of Consolidation and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 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. 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. 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 Insurance Operations (“Insurance Operations”). The Company’s Reinsurance Operations segment provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. Prior to the redomestication transactions, the Company’s Reinsurance Operations consisted solely of the operations of its Bermuda-based wholly-owned subsidiary, Global Indemnity Reinsurance Company, Ltd. (“Global Indemnity Reinsurance”). As part of the redomestication transactions, Global Indemnity Reinsurance was merged with and into Penn-Patriot Insurance Company ("Penn-Patriot"), with Penn-Patriot surviving, resulting in the assumption of Global Indemnity Reinsurance's business by the Company’s existing U.S. insurance company subsidiaries. The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Intercompany Balances and Transactions | The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and nine months ended September 30, 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 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 common shares and common share equivalents outstanding during the period. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 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 September 30, 2020 Fixed maturities: U.S. treasury and agency obligations $ 197,192 $ — $ 4,980 $ (215 ) $ 201,957 Obligations of states and political subdivisions 59,134 — 3,055 (188 ) 62,001 Mortgage-backed securities 393,325 — 8,879 (1,120 ) 401,084 Asset-backed securities 137,953 — 2,198 (1,001 ) 139,150 Commercial mortgage-backed securities 132,271 — 7,444 (804 ) 138,911 Corporate bonds 243,082 — 16,914 (1,135 ) 258,861 Foreign corporate bonds 97,482 — 4,533 (204 ) 101,811 Total fixed maturities $ 1,260,439 $ — $ 48,003 $ (4,667 ) $ 1,303,775 (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 September 30, 2020 and December 31, 2019, the Company’s investments in equity securities consist of the following: (Dollars in thousands) September 30, 2020 December 31, 2019 Common stock $ — $ 135,329 Preferred stock 11,268 11,656 Index funds that invest in fixed maturities 64,673 54,648 Index funds that invest in common stock — 61,471 Total $ 75,941 $ 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 September 30, 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 $ 43,213 $ 43,642 Due in one year through five years 218,132 228,538 Due in five years through ten years 242,488 252,950 Due in ten years through fifteen years 27,757 29,337 Due after fifteen years 65,300 70,163 Mortgage-backed securities 393,325 401,084 Asset-backed securities 137,953 139,150 Commercial mortgage-backed securities 132,271 138,911 Total $ 1,260,439 $ 1,303,775 |
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 September 30, 2020. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 5 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 Total (1) (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 $ 37,486 $ (215 ) $ — $ — $ 37,486 $ (215 ) Obligations of states and political subdivisions 2,471 (188 ) — — 2,471 (188 ) Mortgage-backed securities 97,405 (1,017 ) 1,421 (103 ) 98,826 (1,120 ) Asset-backed securities 31,769 (733 ) 9,916 (268 ) 41,685 (1,001 ) Commercial mortgage-backed securities 12,098 (689 ) 1,026 (115 ) 13,124 (804 ) Corporate bonds 28,337 (1,135 ) — — 28,337 (1,135 ) Foreign corporate bonds 11,899 (204 ) — — 11,899 (204 ) Total fixed maturities $ 221,465 $ (4,181 ) $ 12,363 $ (486 ) $ 233,828 $ (4,667 ) (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 5 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 Total (1) (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 and nine months ended September 30, 2019: Quarter Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 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 and nine months ended September 30, 2019 for which a portion of the OTTI loss was recognized in other comprehensive income. Quarter Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2019 Balance at beginning of period $ 13 $ 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 $ 13 |
Schedule of Accumulated Other Comprehensive Income, Net of Tax | Accumulated other comprehensive income, net of tax, as of September 30, 2020 and December 31, 2019 was as follows: (Dollars in thousands) September 30, 2020 December 31, 2019 Net unrealized gains (losses) from: Fixed maturities $ 43,336 $ 21,591 Foreign currency fluctuations (587 ) (1,032 ) Deferred taxes (7,029 ) (2,950 ) Accumulated other comprehensive income, net of tax $ 35,720 $ 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 and nine months ended September 30, 2020 and 2019: Quarter Ended September 30, 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 $ 38,736 $ (1,043 ) $ 37,693 Other comprehensive income before reclassification, before tax 1,852 456 2,308 Amounts reclassified from accumulated other comprehensive income, before tax (2,276 ) — (2,276 ) Other comprehensive income, before tax (424 ) 456 32 Income tax (expense) benefit (2,128 ) 123 (2,005 ) Ending balance, net of tax $ 36,184 $ (464 ) $ 35,720 Quarter Ended September 30, 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 $ 17,745 $ (1,203 ) $ 16,542 Other comprehensive income (loss) before reclassification, before tax 10,767 200 10,967 Amounts reclassified from accumulated other comprehensive income, before tax (946 ) — (946 ) Other comprehensive income (loss), before tax 9,821 200 10,021 Income tax expense (1,249 ) — (1,249 ) Ending balance, net of tax $ 26,317 $ (1,003 ) $ 25,314 Nine Months Ended September 30, 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 38,773 445 39,218 Amounts reclassified from accumulated other comprehensive income, before tax (17,028 ) — (17,028 ) Other comprehensive income, before tax 21,745 445 22,190 Income tax (expense) benefit (4,202 ) 123 (4,079 ) Ending balance, net of tax $ 36,184 $ (464 ) $ 35,720 Nine Months Ended September 30, 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 55,960 331 56,291 Amounts reclassified from accumulated other comprehensive income, before tax (2,834 ) — (2,834 ) Other comprehensive income, before tax 53,126 331 53,457 Income tax expense (6,912 ) — (6,912 ) Ending balance, net of tax $ 26,317 $ (1,003 ) $ 25,314 |
Reclassifications Out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive income for the quarters and nine months ended September 30, 2020 and 2019 were as follows: Amounts Reclassified from Accumulated Other Comprehensive Income (Dollars in thousands) Quarters Ended September 30, 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 $ (2,276 ) $ (946 ) Other than temporary impairment losses on investments — — Total before tax (2,276 ) (946 ) Income tax expense (benefit) 172 99 Unrealized gains and losses on available for sale securities, net of tax (2,104 ) (847 ) 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 $ (2,104 ) $ (847 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Dollars in thousands) Nine Months Ended September 30, 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 $ (17,028 ) $ (4,731 ) Other than temporary impairment losses on investments — 1,897 Total before tax (17,028 ) (2,834 ) Income tax expense (benefit) 3,823 169 Unrealized gains and losses on available for sale securities, net of tax (13,205 ) (2,665 ) 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 $ (13,205 ) $ (2,665 ) |
Components of Net Realized Investment Gains (Losses) | The components of net realized investment gains (losses) for the quarters and nine months ended September 30, 2020 and 2019 were as follows: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2020 2019 2020 2019 Fixed maturities: Gross realized gains $ 2,705 $ 1,054 $ 21,685 $ 5,765 Gross realized losses (429 ) (108 ) (4,657 ) (2,931 ) Net realized gains (losses) 2,276 946 17,028 2,834 Equity securities: Gross realized gains 4,942 1,681 14,669 26,936 Gross realized losses (55 ) (3,146 ) (31,870 ) (9,076 ) Net realized gains (losses) 4,887 (1,465 ) (17,201 ) 17,860 Derivatives: Gross realized gains 1,520 341 19,514 341 Gross realized losses (1,360 ) (2,512 ) (41,673 ) (9,745 ) Net realized gains (losses) (1) 160 (2,171 ) (22,159 ) (9,404 ) Total net realized investment gains (losses) $ 7,323 $ (2,690 ) $ (22,332 ) $ 11,290 (1) Includes periodic net interest settlements related to the derivatives of $1.4 million and $0.3 million for the quarters ended September 30, 2020 and 2019, respectively, and $3.1 million |
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 September 30, 2020 and 2019: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2020 2019 2020 2019 Net gains and (losses) recognized during the period on equity securities $ 4,887 $ (1,465 ) $ (17,201 ) $ 17,860 Less: Net gains (losses) recognized during the period on equity securities sold during the period 3,419 (614 ) (366 ) 9,836 Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date $ 1,468 $ (851 ) $ (16,835 ) $ 8,024 |
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 nine months ended September 30, 2020 and 2019 were as follows: Nine Months Ended September 30, (Dollars in thousands) 2020 2019 Fixed maturities $ 600,962 $ 642,049 Equity securities 563,926 206,212 |
Schedule of Investment Income | The sources of net investment income for the quarters and nine months ended September 30, 2020 and 2019 were as follows: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2020 2019 2020 2019 Fixed maturities $ 7,421 $ 8,806 $ 25,013 $ 27,692 Equity securities 1,390 1,704 4,161 4,384 Cash and cash equivalents 260 372 492 1,242 Other invested assets 3,485 1,280 (8,004 ) 1,394 Total investment income 12,556 12,162 21,662 34,712 Investment expense (810 ) (814 ) (2,146 ) (2,319 ) Net investment income $ 11,746 $ 11,348 $ 19,516 $ 32,393 |
Schedule of Total Investment Return | The Company’s total investment return on a pre-tax basis for the quarters and nine months ended September 30, 2020 and 2019 were as follows: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2020 2019 2020 2019 Net investment income $ 11,746 $ 11,348 $ 19,516 $ 32,393 Net realized investment gains (losses) 7,323 (2,690 ) (22,332 ) 11,290 Change in unrealized holding gains and losses 32 10,021 22,190 53,457 Net realized and unrealized investment returns 7,355 7,331 (142 ) 64,747 Total investment return $ 19,101 $ 18,679 $ 19,374 $ 97,140 Total investment return % (1) 1.2 % 1.2 % 1.3 % 6.2 % Average investment portfolio (2) $ 1,541,227 $ 1,585,165 $ 1,528,005 $ 1,562,177 (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 September 30, 2020 and December 31, 2019: Estimated Fair Value (Dollars in thousands) September 30, 2020 December 31, 2019 On deposit with governmental authorities $ 27,082 $ 26,431 Intercompany trusts held for the benefit of U.S. policyholders 142,496 179,116 Held in trust pursuant to third party requirements 84,174 133,122 Letter of credit held for third party requirements 2,645 1,458 Securities held as collateral 555 91,229 Total $ 256,952 $ 431,356 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2020 and December 31, 2019: (Dollars in thousands) September 30, 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 $ (17,931 ) $ 200,000 $ (10,275 ) Futures contracts on bonds (1) Other assets/liabilities 30,418 — 16,894 — Futures contracts on equities (1) Other assets/liabilities — — 57,816 — Total $ 230,418 $ (17,931 ) $ 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 and nine months ended September 30, 2020 and 2019: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) Consolidated Statements of Operations Line 2020 2019 2020 2019 Interest rate swap agreements Net realized investment gains (losses) $ 45 $ (1,831 ) $ (10,827 ) $ (9,064 ) Futures contracts on bonds Net realized investment gains (losses) 115 15 (2,343 ) 15 Futures contracts on equities Net realized investment gains (losses) — (355 ) (8,989 ) (355 ) Total $ 160 $ (2,171 ) $ (22,159 ) $ (9,404 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 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 September 30, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 200,457 $ 1,500 $ — $ 201,957 Obligations of states and political subdivisions — 62,001 — 62,001 Mortgage-backed securities — 401,084 — 401,084 Commercial mortgage-backed securities — 138,911 — 138,911 Asset-backed securities — 139,150 — 139,150 Corporate bonds — 258,861 — 258,861 Foreign corporate bonds — 101,811 — 101,811 Total fixed maturities 200,457 1,103,318 — 1,303,775 Equity securities 64,673 11,268 — 75,941 Total assets measured at fair value $ 265,130 $ 1,114,586 $ — $ 1,379,716 Liabilities: Derivative instruments $ — $ 17,931 $ — $ 17,931 Total liabilities measured at fair value $ — $ 17,931 $ — $ 17,931 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 September 30, 2020 and December 31, 2019 was as follows: September 30, 2020 December 31, 2019 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Margin Borrowing Facility (1) $ — $ — $ 73,629 $ 73,629 7.75% Subordinated Notes due 2045 (2) — — 96,864 100,264 7.875% Subordinated Notes due 2047 (3) 126,253 130,153 126,147 134,462 Total $ 126,253 $ 130,153 $ 296,640 $ 308,355 (1) The Margin Borrowing Facility was fully paid down in August 2020. ( 2 ) As of December 31, 2019, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of ( 3 ) As of September 30, 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 $3.7 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 September 30, 2020 and December 31, 2019. September 30, 2020 December 31, 2019 (Dollars in thousands) Fair Value Future Funding Commitment Fair Value Future Funding Commitment European Non-Performing Loan Fund, LP (1) $ 11,283 $ 14,214 $ 13,530 $ 14,214 Distressed Debt Fund, LP (2) 16,979 17,000 23,966 17,000 Mortgage Debt Fund, LP (3) 9,487 — 9,783 506 Total $ 37,749 $ 31,214 $ 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) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2020: Quarter Ended September 30, 2020 Nine Months Ended September 30, 2020 (Dollars in thousands) Premiums Receivable Reinsurance Receivables Premiums Receivable Reinsurance Receivables Beginning balance $ 2,931 $ 8,992 $ 2,754 $ 8,992 Current period provision for expected credit losses 476 — 951 — Write-offs (538 ) — (836 ) — Ending balance $ 2,869 $ 8,992 $ 2,869 $ 8,992 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2020 and 2019 were as follows: Quarter Ended September 30, 2020 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 13,085 $ 130,664 $ — $ 143,749 Net written premiums $ 13,085 $ 117,526 $ — $ 130,611 Net earned premiums $ 9,983 $ 130,319 $ — $ 140,302 Net investment income 4,054 9,851 (2,159 ) 11,746 Net realized investment gains 1,511 5,812 — 7,323 Other income 164 378 — 542 Total revenues 15,712 146,360 (2,159 ) 159,913 Losses and Expenses: Net losses and loss adjustment expenses 519 96,629 — 97,148 Acquisition costs and other underwriting expenses 3,584 49,684 — 53,268 Corporate and other operating expenses 17,283 3,913 — 21,196 Interest expense 193 5,586 (2,159 ) 3,620 Loss on extinguishment of debt 3,060 — — 3,060 Loss before income taxes $ (8,927 ) $ (9,452 ) $ — $ (18,379 ) Quarter Ended September 30, 2019 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 19,980 $ 137,197 $ — $ 157,177 Net written premiums $ 19,990 $ 118,846 $ — $ 138,836 Net earned premiums $ 19,512 $ 113,800 $ — $ 133,312 Net investment income 7,212 7,732 (3,596 ) 11,348 Net realized investment gains (losses) 375 (3,065 ) — (2,690 ) Other income (loss) (234 ) 498 — 264 Total revenues 26,865 118,965 (3,596 ) 142,234 Losses and Expenses: Net losses and loss adjustment expenses 7,628 65,955 — 73,583 Acquisition costs and other underwriting expenses 6,201 47,165 — 53,366 Corporate and other operating expenses 1,514 2,344 — 3,858 Interest expense 351 8,268 (3,596 ) 5,023 Income (loss) before income taxes $ 11,171 $ (4,767 ) $ — $ 6,404 Nine Months Ended September 30, 2020 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 46,654 $ 417,368 $ — $ 464,022 Net written premiums $ 46,654 $ 370,333 $ — $ 416,987 Net earned premiums $ 53,384 $ 373,233 $ — $ 426,617 Net investment income 17,336 11,324 (9,144 ) 19,516 Net realized investment losses (3,867 ) (18,465 ) — (22,332 ) Other income 148 1,325 — 1,473 Total revenues 67,001 367,417 (9,144 ) 425,274 Losses and Expenses: Net losses and loss adjustment expenses 12,874 229,218 — 242,092 Acquisition costs and other underwriting expenses 17,828 145,430 — 163,258 Corporate and other operating expenses 23,357 10,680 — 34,037 Interest expense 869 21,472 (9,144 ) 13,197 Loss on extinguishment of debt 3,060 — — 3,060 Income (loss) before income taxes $ 9,013 $ (39,383 ) $ — $ (30,370 ) Nine Months Ended September 30, 2019 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 69,588 $ 409,111 $ — $ 478,699 Net written premiums $ 69,591 $ 351,730 $ — $ 421,321 Net earned premiums $ 52,798 $ 330,804 $ — $ 383,602 Net investment income 22,254 20,824 (10,685 ) 32,393 Net realized investment gains 1,768 9,522 — 11,290 Other income (loss) (256 ) 1,530 — 1,274 Total revenues 76,564 362,680 (10,685 ) 428,559 Losses and Expenses: Net losses and loss adjustment expenses 24,076 177,903 — 201,979 Acquisition costs and other underwriting expenses 16,556 137,087 — 153,643 Corporate and other operating expenses 4,822 6,880 — 11,702 Interest expense 1,059 24,714 (10,685 ) 15,088 Income before income taxes $ 30,051 $ 16,096 $ — $ 46,147 |
Components of Income Tax Expense (Benefit) | The following table summarizes the components of income tax expense (benefit): Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2020 2019 2020 2019 Current income tax expense (benefit): Foreign $ 130 $ (17 ) $ 130 $ (35 ) U.S. Federal — — — — Total current income tax expense (benefit) 130 (17 ) 130 (35 ) Deferred income tax expense (benefit): U.S. Federal (3,339 ) (300 ) (8,303 ) 5,198 Total deferred income tax expense (benefit) (3,339 ) (300 ) (8,303 ) 5,198 Total income tax expense (benefit) $ (3,209 ) $ (317 ) $ (8,173 ) $ 5,163 |
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 September 30, 2020 2019 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average tax rate $ (1,985 ) 10.8 % $ (1,001 ) 15.6 % Adjustments: Tax exempt interest (1 ) — — — Dividend exclusion (86 ) 0.5 (33 ) 0.5 Non-deductible interest 416 (2.3 ) 695 (10.8 ) Change in tax status (1,704 ) 9.3 — — Parent income treated as partnership for tax (146 ) 0.8 — — Other 297 (1.6 ) 22 (0.3 ) Effective income tax benefit $ (3,209 ) 17.5 % $ (317 ) 5.0 % Nine Months Ended September 30, 2020 2019 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average tax rate $ (8,270 ) 27.2 % $ 3,380 7.3 % Adjustments: Tax exempt interest (2 ) — (1 ) — Dividend exclusion (198 ) 0.6 (256 ) (0.6 ) Non-deductible interest 1,773 (5.8 ) 2,063 4.5 Change in tax status (1,704 ) 5.6 — — Parent income treated as partnership for tax (146 ) 0.5 — — Other 374 (1.2 ) (23 ) — Effective income tax expense (benefit) $ (8,173 ) 26.9 % $ 5,163 11.2 % |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, (Dollars in thousands) 2020 2019 2020 2019 Balance at beginning of period $ 651,073 $ 608,773 $ 630,181 $ 680,031 Less: Ceded reinsurance receivables 87,221 59,834 76,273 109,342 Net balance at beginning of period 563,852 548,939 553,908 570,689 Incurred losses and loss adjustment expenses related to: Current year 108,859 80,533 273,709 225,022 Prior years (11,711 ) (6,950 ) (31,617 ) (23,043 ) Total incurred losses and loss adjustment expenses 97,148 73,583 242,092 201,979 Paid losses and loss adjustment expenses related to: Current year 60,114 47,290 119,541 102,806 Prior years 29,612 20,789 105,185 115,419 Total paid losses and loss adjustment expenses 89,726 68,079 224,726 218,225 Net balance at end of period 571,274 554,443 571,274 554,443 Plus: Ceded reinsurance receivables 98,656 78,844 98,656 78,844 Balance at end of period $ 669,930 $ 633,287 $ 669,930 $ 633,287 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Outstanding Debt | The Company’s outstanding debt consisted of the following at September 30, 2020 and December 31, 2019: (Dollars in thousands) September 30, 2020 December 31, 2019 Margin Borrowing Facility $ — $ 73,629 7.75% Subordinated Notes due 2045 — 96,864 7.875% Subordinated Notes due 2047 126,253 126,147 Total $ 126,253 $ 296,640 |
Amounts Recorded for the Subordinated Notes | The following table represents the amounts recorded for the subordinated notes as of September 30, 2020 and December 31, 2019: September 30, 2020 (Dollars in thousands) Outstanding Principal Unamortized Debt Issuance Costs Net Carrying Amount 7.875% Subordinated Notes due 2047 $ 130,000 $ (3,747 ) $ 126,253 $ 130,000 $ (3,747 ) $ 126,253 December 31, 2019 (Dollars in thousands) Outstanding Principal Unamortized Debt Issuance Costs Net Carrying Amount 7.75% Subordinated Notes due 2045 $ 100,000 $ (3,136 ) $ 96,864 7.875% Subordinated Notes due 2047 130,000 (3,853 ) 126,147 $ 230,000 $ (6,989 ) $ 223,011 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Information with Respect to Class A Common Shares that were Surrendered or Repurchased | The following table provides information with respect to the class A common shares that were surrendered or repurchased during the quarter ended September 30, 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 August 1-31, 2020 396 (2) $ 24.95 — — Total 396 $ 24.95 — (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 class A common shares that were surrendered or repurchased during the nine months ended September 30, 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 — — August 1-31, 2020 396 $ 24.95 — — Total 5,120 $ 29.74 — (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 class A common shares that were surrendered or repurchased during the nine months ended September 30, 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 & Distributions Declared | Dividend & distribution payments of $0.25 per common share were declared during the nine months ended September 30, 2020 as follows: Approval Date Record Date Payment Date Total Dividends / Distributions Declared (Dollars in thousands) February 9, 2020 (1) March 24, 2020 March 31, 2020 $ 3,539 June 7, 2020 (1) June 23, 2020 June 30, 2020 3,545 September 13, 2020 (2) September 25, 2020 September 30, 2020 3,552 Various (3) Various Various 337 Total $ 10,973 (1) Represents dividend payments (2) Represents distribution / return of capital payments (3) Represents dividends / distributions declared on unvested shares, net of forfeitures. Dividend payments of $0.25 per common share were declared during the nine months ended September 30, 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 June 2, 2019 June 21, 2019 June 28, 2019 3,525 September 15, 2019 September 26, 2019 October 2, 2019 3,528 Various (1) Various Various 191 Total $ 10,765 (1) Represents dividends declared on unvested shares, net of forfeitures. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, (Dollars in thousands, except share and per share data) 2020 2019 2020 2019 Numerator: Net income (loss) $ (15,170 ) $ 6,721 $ (22,197 ) $ 40,984 Less: preferred stock distributions 42 — 42 — Net income (loss) available to common shareholders $ (15,212 ) $ 6,721 $ (22,239 ) $ 40,984 Denominator: Weighted average shares for basic earnings per share 14,304,426 14,202,859 14,276,594 14,181,530 Non-vested restricted stock — 23,059 — 19,201 Non-vested restricted stock units — — — 2,954 Options — 101,839 — 125,176 Weighted average shares for diluted earnings per share (1) 14,304,426 14,327,757 14,276,594 14,328,861 Earnings per share - Basic $ (1.06 ) $ 0.47 $ (1.56 ) $ 2.89 Earnings per share - Diluted $ (1.06 ) $ 0.47 $ (1.56 ) $ 2.86 (1) For the quarter and nine months ended September 30, 2020, weighted average shares outstanding – basic was used to calculate diluted earnings per share due to a net loss for these periods. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Summary of Business Segment Information | The following are tabulations of business segment information for the quarters and nine months ended September 30, 2020 and 2019: Quarter Ended September 30, 2020 (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 74,971 $ 34,730 $ 19,443 $ 14,605 $ 143,749 Net written premiums $ 69,074 $ 29,971 $ 16,961 $ 14,605 $ 130,611 Net earned premiums $ 73,887 $ 31,388 $ 19,978 $ 15,049 $ 140,302 Other income — 450 35 112 597 Total revenues 73,887 31,838 20,013 15,161 140,899 Losses and Expenses: Net losses and loss adjustment expenses 42,879 34,430 14,649 5,190 97,148 Acquisition costs and other underwriting expenses 26,943 13,364 7,443 5,518 53,268 Income (loss) from segments $ 4,065 $ (15,956 ) $ (2,079 ) $ 4,453 $ (9,517 ) Unallocated Items: Net investment income 11,746 Net realized investment gains 7,323 Other loss (55 ) Corporate and other operating expenses (21,196 ) Interest expense (3,620 ) Loss on extinguishment of debt (3,060 ) Loss before income taxes (18,379 ) Income tax benefit 3,209 Net loss (15,170 ) Segment assets $ 752,002 $ 207,831 $ 137,697 $ 269,771 $ 1,367,301 Corporate assets 572,456 Total assets $ 1,939,757 (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 September 30, 2019 (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 73,175 $ 42,611 $ 21,410 $ 19,981 $ 157,177 Net written premiums $ 62,925 $ 37,628 $ 18,294 $ 19,989 $ 138,836 Net earned premiums $ 60,869 $ 34,554 $ 18,377 $ 19,512 $ 133,312 Other income (loss) — 465 34 (235 ) 264 Total revenues 60,869 35,019 18,411 19,277 133,576 Losses and Expenses: Net losses and loss adjustment expenses 27,389 25,997 10,939 9,258 73,583 Acquisition costs and other underwriting expenses 24,820 14,571 7,776 6,199 53,366 Income (loss) from segments $ 8,660 $ (5,549 ) $ (304 ) $ 3,820 $ 6,627 Unallocated Items: Net investment income 11,348 Net realized investment loss (2,690 ) Corporate and other operating expenses (3,858 ) Interest expense (5,023 ) Income before income taxes 6,404 Income tax benefit 317 Net income 6,721 Segment assets $ 705,260 $ 246,080 $ 136,420 $ 346,137 $ 1,433,897 Corporate assets 650,259 Total assets $ 2,084,156 (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. Nine Months Ended September 30, 2020 (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 243,099 $ 107,951 $ 64,798 $ 48,174 $ 464,022 Net written premiums $ 219,437 $ 93,053 $ 56,323 $ 48,174 $ 416,987 Net earned premiums $ 211,329 $ 99,147 $ 57,691 $ 58,450 $ 426,617 Other income — 1,306 107 96 1,509 Total revenues 211,329 100,453 57,798 58,546 428,126 Losses and Expenses: Net losses and loss adjustment expenses 109,191 65,619 37,698 29,584 242,092 Acquisition costs and other underwriting expenses 79,452 41,357 22,687 19,762 163,258 Income (loss) from segments $ 22,686 $ (6,523 ) $ (2,587 ) $ 9,200 $ 22,776 Unallocated Items: Net investment income 19,516 Net realized investment loss (22,332 ) Other loss (36 ) Corporate and other operating expenses (34,037 ) Interest expense (13,197 ) Loss on extinguishment of debt (3,060 ) Loss before income taxes (30,370 ) Income tax benefit 8,173 Net loss (22,197 ) Segment assets $ 752,002 $ 207,831 $ 137,697 $ 269,771 $ 1,367,301 Corporate assets 572,456 Total assets $ 1,939,757 (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. Nine Months Ended September 30, 2019 (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 214,467 $ 128,771 $ 65,872 $ 69,589 $ 478,699 Net written premiums $ 185,202 $ 110,668 $ 55,861 $ 69,590 $ 421,321 Net earned premiums $ 173,215 $ 104,740 $ 52,849 $ 52,798 $ 383,602 Other income (loss) — 1,406 96 (228 ) 1,274 Total revenues 173,215 106,146 52,945 52,570 384,876 Losses and Expenses: Net losses and loss adjustment expenses 81,731 57,611 32,203 30,434 201,979 Acquisition costs and other underwriting expenses 70,522 44,163 22,403 16,555 153,643 Income (loss) from segments $ 20,962 $ 4,372 $ (1,661 ) $ 5,581 $ 29,254 Unallocated Items: Net investment income 32,393 Net realized investment gain 11,290 Corporate and other operating expenses (11,702 ) Interest expense (15,088 ) Income before income taxes 46,147 Income tax expense (5,163 ) Net income 40,984 Segment assets $ 705,260 $ 246,080 $ 136,420 $ 346,137 $ 1,433,897 Corporate assets 650,259 Total assets $ 2,084,156 (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) | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets at September 30, 2020 (Dollars in thousands) Global Indemnity Group, LLC (Parent co- obligor) GBLI Holdings, LLC (Subsidiary co-obligor) Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Group, LLC Consolidated ASSETS Total investments $ 212,050 $ 48,940 $ 1,156,475 $ — $ 1,417,465 Cash and cash equivalents 13,765 2,575 20,871 — 37,211 Investments in subsidiaries 491,851 387,913 339,384 (1,219,148 ) — Due from subsidiaries and affiliates (3,999 ) (7,522 ) 11,521 — — Notes receivable – affiliate 11,283 — — (11,283 ) — Interest receivable – affiliate 16 — — (16 ) — Premiums receivable, net — — 109,820 — 109,820 Reinsurance receivables, net — — 112,633 — 112,633 Funds held by ceding insurers — — 46,894 — 46,894 Federal income taxes receivable — 2,892 (2,892 ) — — Deferred federal income taxes — 38,805 (3,505 ) — 35,300 Deferred acquisition costs — — 67,470 — 67,470 Intangible assets — — 21,094 — 21,094 Goodwill — — 6,521 — 6,521 Prepaid reinsurance premiums — — 15,558 — 15,558 Other assets 13,240 19,444 40,854 (3,747 ) 69,791 Total assets $ 738,206 $ 493,047 $ 1,942,698 $ (1,234,194 ) $ 1,939,757 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Unpaid losses and loss adjustment expenses $ — $ — $ 669,930 $ — $ 669,930 Unearned premiums — — 304,074 — 304,074 Ceded balances payable — — 9,576 — 9,576 Payable for Securities 2,207 — 3,423 — 5,630 Contingent commissions — — 11,329 — 11,329 Debt — 130,000 — (3,747 ) 126,253 Notes payable – affiliates — — 11,283 (11,283 ) — Accrued interest payable – affiliates — — 16 (16 ) — Other liabilities 15,286 23,663 53,303 — 92,252 Total liabilities 17,493 153,663 1,062,934 (15,046 ) 1,219,044 Shareholders’ equity Total shareholders’ equity 720,713 339,384 879,764 (1,219,148 ) 720,713 Total liabilities and shareholders’ equity $ 738,206 $ 493,047 $ 1,942,698 $ (1,234,194 ) $ 1,939,757 (1) Includes all other subsidiaries of Global Indemnity Group, LLC 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) GBLI Holdings, 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 September 30, 2020 (Dollars in thousands) Global Indemnity Group, LLC (Parent co-obligor)(3) GBLI Holdings, LLC (Subsidiary co-obligor) Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Group, LLC Consolidated Revenues: Net earned premiums $ — $ — $ 140,302 $ — $ 140,302 Net investment income 1,300 4,642 5,976 (172 ) 11,746 Net realized investment gains 451 4,107 2,765 — 7,323 Other income (loss) (1 ) — 543 — 542 Total revenues 1,750 8,749 149,586 (172 ) 159,913 Losses and Expenses: Net losses and loss adjustment expenses — — 97,148 — 97,148 Acquisition costs and other underwriting expenses — — 53,268 — 53,268 Corporate and other operating expenses 17,324 3,662 210 — 21,196 Interest expense 179 3,569 44 (172 ) 3,620 Loss on extinguishment of debt 3,060 — — — 3,060 Income (loss) before equity in net income (loss) of subsidiaries and income taxes (18,813 ) 1,518 (1,084 ) — (18,379 ) Equity in net income (loss) of subsidiaries 3,643 (10,312 ) (5,784 ) 12,453 — Loss before income taxes (15,170 ) (8,794 ) (6,868 ) 12,453 (18,379 ) Income tax benefit — (3,010 ) (199 ) — (3,209 ) Net loss $ (15,170 ) $ (5,784 ) $ (6,669 ) $ 12,453 $ (15,170 ) (1) Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments (3) Includes activity for Global Indemnity Limited from July 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 Condensed Consolidating Statements of Operations for the Quarter Ended September 30, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) GBLI Holdings, 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 $ — $ — $ 133,312 $ — $ 133,312 Net investment income 393 2,798 8,442 (285 ) 11,348 Net realized investment gains (losses) (101 ) (3,525 ) 936 — (2,690 ) Other income — — 264 — 264 Total revenues 292 (727 ) 142,954 (285 ) 142,234 Losses and Expenses: Net losses and loss adjustment expenses — — 73,583 — 73,583 Acquisition costs and other underwriting expenses — — 53,366 — 53,366 Corporate and other operating expenses 1,320 2,159 379 — 3,858 Interest expense 278 4,957 73 (285 ) 5,023 Income (loss) before equity in net income (loss) of subsidiaries and income taxes (1,306 ) (7,843 ) 15,553 — 6,404 Equity in net income (loss) of subsidiaries 8,027 1,699 (4,462 ) (5,264 ) — Income (loss) before income taxes 6,721 (6,144 ) 11,091 (5,264 ) 6,404 Income tax expense (benefit) — (1,682 ) 1,365 — (317 ) Net income (loss) $ 6,721 $ (4,462 ) $ 9,726 $ (5,264 ) $ 6,721 (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 Nine Months Ended September 30, 2020 (Dollars in thousands) Global Indemnity Group, LLC (Parent co-obligor)(3) GBLI Holdings, LLC (Subsidiary co-obligor) Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Group, LLC Consolidated Revenues: Net earned premiums $ — $ — $ 426,617 $ — $ 426,617 Net investment income (loss) 1,898 (3,870 ) 22,203 (715 ) 19,516 Net realized investment gains (losses) (2,295 ) (36,600 ) 16,563 — (22,332 ) Other income (loss) (1 ) 19 1,455 — 1,473 Total revenues (398 ) (40,451 ) 466,838 (715 ) 425,274 Losses and Expenses: Net losses and loss adjustment expenses — — 242,092 — 242,092 Acquisition costs and other underwriting expenses — — 163,258 — 163,258 Corporate and other operating expenses 23,466 10,143 428 — 34,037 Interest expense 732 13,005 175 (715 ) 13,197 Loss on extinguishment of debt 3,060 — — — 3,060 Income (loss) before equity in net income (loss) of subsidiaries and income taxes (27,656 ) (63,599 ) 60,885 — (30,370 ) Equity in net income (loss) of subsidiaries 5,459 22,509 (25,649 ) (2,319 ) — Income (loss) before income taxes (22,197 ) (41,090 ) 35,236 (2,319 ) (30,370 ) Income tax expense (benefit) — (15,441 ) 7,268 — (8,173 ) Net income (loss) $ (22,197 ) $ (25,649 ) $ 27,968 $ (2,319 ) $ (22,197 ) (1) Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments (3) Includes activity for Global Indemnity Limited from January 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 Condensed Consolidating Statements of Operations for the Nine Months Ended September 30, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) GBLI Holdings, 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 $ — $ — $ 383,602 $ — $ 383,602 Net investment income 1,764 5,743 25,747 (861 ) 32,393 Net realized investment gains 298 7,969 3,023 — 11,290 Other income — 30 1,244 — 1,274 Total revenues 2,062 13,742 413,616 (861 ) 428,559 Losses and Expenses: Net losses and loss adjustment expenses — — 201,979 — 201,979 Acquisition costs and other underwriting expenses — — 153,643 — 153,643 Corporate and other operating expenses 4,306 6,406 990 — 11,702 Interest expense 829 14,875 245 (861 ) 15,088 Income (loss) before equity in net income of subsidiaries and income taxes (3,073 ) (7,539 ) 56,759 — 46,147 Equity in net income of subsidiaries 44,057 16,597 10,903 (71,557 ) — Income before income taxes 40,984 9,058 67,662 (71,557 ) 46,147 Income tax expense (benefit) — (1,845 ) 7,008 — 5,163 Net income $ 40,984 $ 10,903 $ 60,654 $ (71,557 ) $ 40,984 (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 (Loss) for the Quarter Ended September 30, 2020 (Dollars in thousands) Global Indemnity Group, LLC (Parent co-obligor)(3) GBLI Holdings, LLC (Subsidiary co-obligor) Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Group, LLC Consolidated Net loss $ (15,170 ) $ (5,784 ) $ (6,669 ) $ 12,453 $ (15,170 ) Other comprehensive income, net of tax: Unrealized holding gains (losses) (1,310 ) (1,049 ) 1,911 — (448 ) Equity in other comprehensive income of unconsolidated subsidiaries (561 ) 1,596 603 (1,638 ) — Reclassification adjustment for gains included in net income (102 ) 56 (2,058 ) — (2,104 ) Unrealized foreign currency translation gains — — 579 — 579 Other comprehensive income, net of tax (1,973 ) 603 1,035 (1,638 ) (1,973 ) Comprehensive loss, net of tax $ (17,143 ) $ (5,181 ) $ (5,634 ) $ 10,815 $ (17,143 ) (1) Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments (3) Includes activity for Global Indemnity Limited from July 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Quarter Ended September 30, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) GBLI Holdings, 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) $ 6,721 $ (4,462 ) $ 9,726 $ (5,264 ) $ 6,721 Other comprehensive income, net of tax: Unrealized holding gains (losses) — — 9,421 — 9,421 Equity in other comprehensive income of unconsolidated subsidiaries 8,772 4,711 4,703 (18,186 ) — Portion of other-than-temporary impairment losses recognized in other comprehensive income — — (2 ) — (2 ) Reclassification adjustment for gains included in net income — (8 ) (839 ) — (847 ) Unrealized foreign currency translation losses — — 200 — 200 Other comprehensive income, net of tax 8,772 4,703 13,483 (18,186 ) 8,772 Comprehensive income, net of tax $ 15,493 $ 241 $ 23,209 $ (23,450 ) $ 15,493 (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 (Loss) for the Nine Months Ended September 30, 2020 (Dollars in thousands) Global Indemnity Group, LLC (Parent co-obligor)(3) GBLI Holdings, LLC (Subsidiary co-obligor) Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Consolidating Adjustments (2) Global Indemnity Group, LLC Consolidated Net income (loss) $ (22,197 ) $ (25,649 ) $ 27,968 $ (2,319 ) $ (22,197 ) Other comprehensive income, net of tax: Unrealized holding gains 322 (257 ) 30,683 — 30,748 Equity in other comprehensive income (loss) of unconsolidated subsidiaries 17,891 8,643 8,405 (34,939 ) — Reclassification adjustment for (gains) losses included in net income (102 ) 19 (13,122 ) — (13,205 ) Unrealized foreign currency translation gains — — 568 — 568 Other comprehensive income, net of tax 18,111 8,405 26,534 (34,939 ) 18,111 Comprehensive income (loss), net of tax $ (4,086 ) $ (17,244 ) $ 54,502 $ (37,258 ) $ (4,086 ) (1) Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations (2) Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments (3) Includes activity for Global Indemnity Limited from January 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine Months Ended September 30, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) GBLI Holdings, 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 $ 40,984 $ 10,903 $ 60,654 $ (71,557 ) $ 40,984 Other comprehensive income, net of tax: Unrealized holding gains 880 1,567 46,436 — 48,883 Equity in other comprehensive income (loss) of unconsolidated subsidiaries 46,226 24,201 26,003 (96,430 ) — Portion of other-than-temporary impairment losses recognized in other comprehensive losses — — (4 ) — (4 ) Reclassification adjustment for (gains) losses included in net income (561 ) 235 (2,339 ) — (2,665 ) Unrealized foreign currency translation gains — — 331 — 331 Other comprehensive income, net of tax 46,545 26,003 70,427 (96,430 ) 46,545 Comprehensive income, net of tax $ 87,529 $ 36,906 $ 131,081 $ (167,987 ) $ 87,529 (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 Nine Months Ended September 30, 2020 (Dollars in thousands) Global Indemnity Group, LLC (Parent co-obligor)(2) GBLI Holdings, LLC (Subsidiary co-obligor) Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1) Global Indemnity Group, LLC Consolidated Cash flows from operating activities: Net cash provided by (used for) operating activities $ (10,423 ) $ 1,526 $ 42,833 $ 33,936 Cash flows from investing activities: Proceeds from sale of fixed maturities 18,451 36,898 545,613 600,962 Proceeds from sale of equity securities 103,002 460,924 — 563,926 Proceeds from maturity of fixed maturities 280 — 89,595 89,875 Proceeds from other invested assets 1,700 123 — 1,823 Amounts paid in connection with derivatives — (20,130 ) — (20,130 ) Purchases of fixed maturities (185,692 ) (50,283 ) (466,752 ) (702,727 ) Purchases of equity securities (107,228 ) (286,735 ) — (393,963 ) Purchases of other invested assets — (297 ) — (297 ) Net cash provided by (used for) investing activities (169,487 ) 140,500 168,456 139,469 Cash flows from financing activities: Net borrowings under margin borrowing facility — (73,629 ) — (73,629 ) Proceeds (repayment) of note to affiliates — 5,049 (5,049 ) — Dividends paid to shareholders (10,683 ) — — (10,683 ) Issuance of series A cumulative fixed rate preferred shares 4,000 — — 4,000 Dividends from subsidiaries 226,000 — (226,000 ) — Capital contribution (26,466 ) 26,466 — — Purchase of class A common shares (153 ) — — (153 ) Redemption of subordinated notes — (100,000 ) — (100,000 ) Net cash provided by (used for) financing activities 192,698 (142,114 ) (231,049 ) (180,465 ) Net change in cash and cash equivalents 12,788 (88 ) (19,760 ) (7,060 ) Cash and cash equivalents at beginning of period 977 2,663 40,631 44,271 Cash and cash equivalents at end of period $ 13,765 $ 2,575 $ 20,871 $ 37,211 (1) Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations (2) Includes activity for Global Indemnity Limited from January 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 Condensed Consolidating Statements of Cash Flows for the Nine Months Ended September 30, 2019 (Dollars in thousands) Global Indemnity Limited (Parent co-obligor) GBLI Holdings, 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 operating activities $ 1,718 $ 2,593 $ 41,619 $ 45,930 Cash flows from investing activities: Proceeds from sale of fixed maturities 48,393 101,525 492,131 642,049 Proceeds from sale of equity securities 7,300 198,912 — 206,212 Proceeds from maturity of fixed maturities — — 113,480 113,480 Proceeds from other invested assets 3,161 11,040 — 14,201 Amounts paid in connection with derivatives — (12,516 ) — (12,516 ) Purchases of fixed maturities (10,548 ) (24,280 ) (666,856 ) (701,684 ) Purchases of equity securities (40,564 ) (285,408 ) — (325,972 ) Purchases of other invested assets — (3,500 ) — (3,500 ) Net cash provided by (used for) investing activities 7,742 (14,227 ) (61,245 ) (67,730 ) Cash flows from financing activities: Net borrowings under margin borrowing facility — 8,561 — 8,561 Dividends paid to shareholders (7,130 ) — — (7,130 ) Purchase of class A common shares (947 ) — — (947 ) Net cash provided by (used for) financing activities (8,077 ) 8,561 — 484 Net change in cash and cash equivalents 1,383 (3,073 ) (19,626 ) (21,316 ) Cash and cash equivalents at beginning of period 2,221 26,039 71,237 99,497 Cash and cash equivalents at end of period $ 3,604 $ 22,966 $ 51,611 $ 78,181 (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) | 9 Months Ended |
Sep. 30, 2020SegmentProduct | |
Organization And Basis Of Presentation [Line Items] | |
Date of incorporation | Jun. 23, 2020 |
State of incorporation | DE |
Kind of listing | class A common shares |
Number of business segments | Segment | 4 |
Commercial Specialty | |
Organization And Basis Of Presentation [Line Items] | |
Number of product classifications | Product | 4 |
Redomestication - Additional In
Redomestication - Additional Information (Detail) - shares | 9 Months Ended | ||
Sep. 30, 2020 | Aug. 27, 2020 | Dec. 31, 2019 | |
Redomestication [Line Items] | |||
Redomestication close | Aug. 28, 2020 | ||
Description of business combination consideration | consideration of the Amalgamation, the Company issued an equal number of its common shares to Global Indemnity Limited shareholders at the record time of 5:00 p.m. Eastern Time on August 27, 2020 (the "Scheme Record Time"), on the following basis: for each Global Indemnity Limited A ordinary share cancelled, one class A common share of the Company was issued; and for each Global Indemnity Limited B ordinary share cancelled, one class B common share of the Company was issued | ||
Date of issuance of common shares for consideration of amalgamation | Aug. 27, 2020 | ||
Scheme meeting and extraordinary general meeting date | Aug. 25, 2020 | ||
Order granted date for terms and conditions of issuance of securities | Aug. 26, 2020 | ||
Class A Common Shares | |||
Redomestication [Line Items] | |||
Number of common shares issued for each ordinary shares | 1 | ||
Class B Common Shares | |||
Redomestication [Line Items] | |||
Number of common shares issued for each ordinary shares | 1 | ||
Series A Cumulative Fixed Rate Preferred Shares | |||
Redomestication [Line Items] | |||
Preferred shares, shares issued | 4,000 | 4,000 | 0 |
Investments - Additional Inform
Investments - Additional Information (Detail) | 9 Months Ended | |
Sep. 30, 2020USD ($)Entity | Dec. 31, 2019USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Accrued interest receivable | $ 6,100,000 | $ 7,000,000 |
Investments in a single issuer as a percentage of shareholders' equity | 2.00% | 3.00% |
Fixed maturity securities with market value | $ 0 | $ 0 |
Investments in insurance enhanced bonds | $ 26,000,000 | |
Insurance enhanced bonds as a percentage of total cash and invested assets | 1.80% | |
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | $ 26,000,000 | |
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 | $ 11,300,000 | 13,500,000 |
Variable interest entities, maximum exposure to loss | 25,500,000 | 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 | 17,000,000 | 24,000,000 |
Variable interest entities, maximum exposure to loss | 34,000,000 | 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 | 9,500,000 | 9,800,000 |
Variable interest entities, maximum exposure to loss | 9,500,000 | $ 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 | 3,200,000 | |
Assured Guaranty Corporation | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | $ 10,000,000 | |
Fannie Mae Mortgage Pools | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment in mortgage pools as percentage of shareholders' equity | 4.60% | 4.20% |
Municipal Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in insurance enhanced bonds | $ 15,300,000 | |
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 | 10,600,000 | |
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 | $ 804,000 | |
Weighted average credit enhancement | 32.40% | |
Investments in insurance enhanced bonds | $ 10,600,000 | |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 1,135,000 | |
U.S. Treasury and Agency Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 215,000 | |
Obligations of States and Political Subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 188,000 | |
Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 1,120,000 | |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | $ 1,001,000 | |
Weighted average credit enhancement | 33.30% | |
Foreign Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | $ 204,000 | |
Collateralized Mortgage Obligations | Maximum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in insurance enhanced bonds | $ 100,000 |
Schedule of Amortized Cost and
Schedule of Amortized Cost and Estimated Fair Value of Company's Fixed Maturities Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | $ 1,260,439 | $ 1,231,568 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 48,003 | 23,641 |
Fixed maturities, Gross Unrealized losses | (4,667) | (2,050) |
Fixed maturities, Estimated Fair Value | 1,303,775 | 1,253,159 |
U.S. Treasury and Agency Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 197,192 | 153,906 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 4,980 | 3,580 |
Fixed maturities, Gross Unrealized losses | (215) | (797) |
Fixed maturities, Estimated Fair Value | 201,957 | 156,689 |
Obligations of States and Political Subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 59,134 | 63,256 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 3,055 | 853 |
Fixed maturities, Gross Unrealized losses | (188) | (271) |
Fixed maturities, Estimated Fair Value | 62,001 | 63,838 |
Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 393,325 | 325,448 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 8,879 | 3,177 |
Fixed maturities, Gross Unrealized losses | (1,120) | (251) |
Fixed maturities, Estimated Fair Value | 401,084 | 328,374 |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 137,953 | 168,020 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 2,198 | 937 |
Fixed maturities, Gross Unrealized losses | (1,001) | (420) |
Fixed maturities, Estimated Fair Value | 139,150 | 168,537 |
Commercial Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 132,271 | 183,944 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 7,444 | 4,369 |
Fixed maturities, Gross Unrealized losses | (804) | (209) |
Fixed maturities, Estimated Fair Value | 138,911 | 188,104 |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 243,082 | 239,860 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 16,914 | 8,478 |
Fixed maturities, Gross Unrealized losses | (1,135) | (79) |
Fixed maturities, Estimated Fair Value | 258,861 | 248,259 |
Foreign Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 97,482 | 97,134 |
Fixed maturities, Allowance for Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 4,533 | 2,247 |
Fixed maturities, Gross Unrealized losses | (204) | (23) |
Fixed maturities, Estimated Fair Value | $ 101,811 | $ 99,358 |
Schedule of Investments in Equi
Schedule of Investments in Equity Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | $ 75,941 | $ 263,104 |
Common Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | 0 | 135,329 |
Preferred Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | 11,268 | 11,656 |
Index Funds that Invest in Common Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | 0 | 61,471 |
Index Funds that Invest in Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | $ 64,673 | $ 54,648 |
Summary of Amortized Cost and E
Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | $ 43,213 | |
Due in one year through five years, Amortized Cost | 218,132 | |
Due in five years through ten years, Amortized Cost | 242,488 | |
Due in ten years through fifteen years, Amortized Cost | 27,757 | |
Due after fifteen years, Amortized Cost | 65,300 | |
Fixed maturities, Amortized Cost | 1,260,439 | $ 1,231,568 |
Due in one year or less, Estimated Fair value | 43,642 | |
Due in one year through five years, Estimated Fair value | 228,538 | |
Due in five years through ten years, Estimated Fair value | 252,950 | |
Due in ten years through fifteen years, Estimated Fair value | 29,337 | |
Due after fifteen years, Estimated Fair value | 70,163 | |
Fixed Maturities, estimated fair value | 1,303,775 | 1,253,159 |
Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 393,325 | |
Fixed maturities, Amortized Cost | 393,325 | 325,448 |
Estimated Fair value | 401,084 | |
Fixed Maturities, estimated fair value | 401,084 | 328,374 |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 137,953 | |
Fixed maturities, Amortized Cost | 137,953 | 168,020 |
Estimated Fair value | 139,150 | |
Fixed Maturities, estimated fair value | 139,150 | 168,537 |
Commercial Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 132,271 | |
Fixed maturities, Amortized Cost | 132,271 | 183,944 |
Estimated Fair value | 138,911 | |
Fixed Maturities, estimated fair value | $ 138,911 | $ 188,104 |
Summary of Securities with Gros
Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
U.S. Treasury and Agency Obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | $ (215) | ||
Obligations of States and Political Subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (188) | ||
Mortgage Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (1,120) | ||
Asset-backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (1,001) | ||
Commercial Mortgage-Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (804) | ||
Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (1,135) | ||
Foreign Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross Unrealized Losses | (204) | ||
Fixed Maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 221,465 | $ 249,721 | |
Less than 12 months, Gross Unrealized Losses | (4,181) | (1,774) | |
12 months or longer, Fair Value | 12,363 | 21,034 | |
12 months or longer, Gross Unrealized Losses | (486) | (276) | |
Total, Fair Value | [1] | 233,828 | 270,755 |
Total, Gross Unrealized Losses | [1] | (4,667) | (2,050) |
Fixed Maturities | U.S. Treasury and Agency Obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 37,486 | 35,633 | |
Less than 12 months, Gross Unrealized Losses | (215) | (797) | |
12 months or longer, Fair Value | 0 | 0 | |
12 months or longer, Gross Unrealized Losses | 0 | 0 | |
Total, Fair Value | [1] | 37,486 | 35,633 |
Total, Gross Unrealized Losses | [1] | (215) | (797) |
Fixed Maturities | Obligations of States and Political Subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 2,471 | 27,180 | |
Less than 12 months, Gross Unrealized Losses | (188) | (271) | |
12 months or longer, Fair Value | 0 | 0 | |
12 months or longer, Gross Unrealized Losses | 0 | 0 | |
Total, Fair Value | [1] | 2,471 | 27,180 |
Total, Gross Unrealized Losses | [1] | (188) | (271) |
Fixed Maturities | Mortgage Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 97,405 | 93,579 | |
Less than 12 months, Gross Unrealized Losses | (1,017) | (244) | |
12 months or longer, Fair Value | 1,421 | 902 | |
12 months or longer, Gross Unrealized Losses | (103) | (7) | |
Total, Fair Value | [1] | 98,826 | 94,481 |
Total, Gross Unrealized Losses | [1] | (1,120) | (251) |
Fixed Maturities | Asset-backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 31,769 | 43,402 | |
Less than 12 months, Gross Unrealized Losses | (733) | (167) | |
12 months or longer, Fair Value | 9,916 | 16,152 | |
12 months or longer, Gross Unrealized Losses | (268) | (253) | |
Total, Fair Value | [1] | 41,685 | 59,554 |
Total, Gross Unrealized Losses | [1] | (1,001) | (420) |
Fixed Maturities | Commercial Mortgage-Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 12,098 | 25,698 | |
Less than 12 months, Gross Unrealized Losses | (689) | (196) | |
12 months or longer, Fair Value | 1,026 | 1,945 | |
12 months or longer, Gross Unrealized Losses | (115) | (13) | |
Total, Fair Value | [1] | 13,124 | 27,643 |
Total, Gross Unrealized Losses | [1] | (804) | (209) |
Fixed Maturities | Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 28,337 | 19,407 | |
Less than 12 months, Gross Unrealized Losses | (1,135) | (79) | |
12 months or longer, Fair Value | 0 | 0 | |
12 months or longer, Gross Unrealized Losses | 0 | 0 | |
Total, Fair Value | [1] | 28,337 | 19,407 |
Total, Gross Unrealized Losses | [1] | (1,135) | (79) |
Fixed Maturities | Foreign Corporate Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 months, Fair Value | 11,899 | 4,822 | |
Less than 12 months, Gross Unrealized Losses | (204) | (20) | |
12 months or longer, Fair Value | 0 | 2,035 | |
12 months or longer, Gross Unrealized Losses | 0 | (3) | |
Total, Fair Value | [1] | 11,899 | 6,857 |
Total, Gross Unrealized Losses | [1] | $ (204) | $ (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) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | ||
OTTI losses, gross | $ 0 | $ (1,897) |
Portion of loss recognized in other comprehensive income (pre-tax) | 0 | 0 |
Net impairment losses on fixed maturities recognized in earnings | $ 0 | $ (1,897) |
Schedule of Credit Losses Recog
Schedule of Credit Losses Recognized in Earnings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | ||
Balance at beginning of period | $ 13 | $ 13 |
Additions where no OTTI was previously recorded | 0 | 0 |
Additions where an OTTI was previously recorded | 0 | 0 |
Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery | 0 | 0 |
Reductions reflecting increases in expected cash flows to be collected | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 |
Balance at end of period | $ 13 | $ 13 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income, Net of Tax (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Investments Debt And Equity Securities [Abstract] | ||||||
Fixed maturities | $ 43,336 | $ 21,591 | ||||
Foreign currency fluctuations | (587) | (1,032) | ||||
Deferred taxes | (7,029) | (2,950) | ||||
Accumulated other comprehensive income, net of tax | $ 35,720 | $ 37,693 | $ 17,609 | $ 25,314 | $ 16,542 | $ (21,231) |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, net of tax | $ 37,693 | $ 16,542 | $ 17,609 | $ (21,231) |
Other comprehensive income (loss) before reclassification, before tax | 2,308 | 10,967 | 39,218 | 56,291 |
Amounts reclassified from accumulated other comprehensive income, before tax | (2,276) | (946) | (17,028) | (2,834) |
Other comprehensive income (loss), before tax | 32 | 10,021 | 22,190 | 53,457 |
Income tax (expense) benefit | (2,005) | (1,249) | (4,079) | (6,912) |
Ending balance, net of tax | 35,720 | 25,314 | 35,720 | 25,314 |
Unrealized Gains and Losses on Available for Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, net of tax | 38,736 | 17,745 | 18,641 | (19,897) |
Other comprehensive income (loss) before reclassification, before tax | 1,852 | 10,767 | 38,773 | 55,960 |
Amounts reclassified from accumulated other comprehensive income, before tax | (2,276) | (946) | (17,028) | (2,834) |
Other comprehensive income (loss), before tax | (424) | 9,821 | 21,745 | 53,126 |
Income tax (expense) benefit | (2,128) | (1,249) | (4,202) | (6,912) |
Ending balance, net of tax | 36,184 | 26,317 | 36,184 | 26,317 |
Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, net of tax | (1,043) | (1,203) | (1,032) | (1,334) |
Other comprehensive income (loss) before reclassification, before tax | 456 | 200 | 445 | 331 |
Amounts reclassified from accumulated other comprehensive income, before tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), before tax | 456 | 200 | 445 | 331 |
Income tax (expense) benefit | 123 | 0 | 123 | 0 |
Ending balance, net of tax | $ (464) | $ (1,003) | $ (464) | $ (1,003) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other net realized investment (gains) losses | $ (7,323) | $ 2,690 | $ 22,332 | $ (13,187) |
Total before tax | 18,379 | (6,404) | 30,370 | (46,147) |
Income tax expense (benefit) | (3,209) | (317) | (8,173) | 5,163 |
Net income (loss) | 15,170 | (6,721) | 22,197 | (40,984) |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications, net of tax | (2,104) | (847) | (13,205) | (2,665) |
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 | (2,276) | (946) | (17,028) | (4,731) |
Other than temporary impairment losses on investments | 0 | 0 | 0 | 1,897 |
Total before tax | (2,276) | (946) | (17,028) | (2,834) |
Income tax expense (benefit) | 172 | 99 | 3,823 | 169 |
Net income (loss) | (2,104) | (847) | (13,205) | (2,665) |
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 | 0 | 0 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net income (loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Components of Net Realized Inve
Components of Net Realized Investment Gains (Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Debt Securities, Available-for-sale [Line Items] | |||||
Total net realized investment gains (losses) | $ 7,323 | $ (2,690) | $ (22,332) | $ 11,290 | |
Equity securities, Gross realized gains | 4,942 | 1,681 | 14,669 | 26,936 | |
Equity securities, Gross realized losses | (55) | (3,146) | (31,870) | (9,076) | |
Equity securities, Total net realized investment gains (losses) | 4,887 | (1,465) | (17,201) | 17,860 | |
Not Designated as Hedging Instrument | Interest Rate Swap | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Gross realized gains | 1,520 | 341 | 19,514 | 341 | |
Gross realized losses | (1,360) | (2,512) | (41,673) | (9,745) | |
Total net realized investment gains (losses) | [1] | 160 | (2,171) | (22,159) | (9,404) |
Fixed Maturities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Gross realized gains | 2,705 | 1,054 | 21,685 | 5,765 | |
Gross realized losses | (429) | (108) | (4,657) | (2,931) | |
Total net realized investment gains (losses) | $ 2,276 | $ 946 | $ 17,028 | $ 2,834 | |
[1] | Includes periodic net interest settlements related to the derivatives of $1.4 million and $0.3 million for the quarters ended September 30, 2020 and 2019, respectively, and $3.1 million |
Components of Net Realized In_2
Components of Net Realized Investment Gains (Losses) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Net interest settlements | $ 160 | $ (2,171) | $ (22,159) | $ (9,404) |
Interest Rate Swap | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Net interest settlements | $ 1,400 | $ 300 | $ 3,100 | $ 700 |
Summary of Calculation of Reali
Summary of Calculation of Realized Gains and Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | ||||
Equity securities, Total net realized investment gains (losses) | $ 4,887 | $ (1,465) | $ (17,201) | $ 17,860 |
Less: Net gains (losses) recognized during the period on equity securities sold during the period | 3,419 | (614) | (366) | 9,836 |
Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date | $ 1,468 | $ (851) | $ (16,835) | $ 8,024 |
Schedule of Proceeds From Sales
Schedule of Proceeds From Sales and Redemptions of Available for Sale Securities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | ||
Fixed maturities | $ 600,962 | $ 642,049 |
Equity securities | $ 563,926 | $ 206,212 |
Schedule of Investment Income (
Schedule of Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Investment income | $ 12,556 | $ 12,162 | $ 21,662 | $ 34,712 |
Investment income (loss) | 12,556 | |||
Investment expense | (810) | (814) | (2,146) | (2,319) |
Net investment income | 11,746 | 11,348 | 19,516 | 32,393 |
Fixed Maturities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Investment income | 7,421 | 8,806 | 25,013 | 27,692 |
Equity Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Investment income | 1,390 | 1,704 | 4,161 | 4,384 |
Cash and Cash Equivalents | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Investment income | 260 | 372 | 492 | 1,242 |
Other Invested Assets | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Investment income | $ 3,485 | $ 1,280 | $ (8,004) | $ 1,394 |
Schedule of Total Investment Re
Schedule of Total Investment Return (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Investments Debt And Equity Securities [Abstract] | |||||
Net investment income | $ 11,746 | $ 11,348 | $ 19,516 | $ 32,393 | |
Net realized investment gains (losses) | 7,323 | (2,690) | (22,332) | 11,290 | |
Change in unrealized holding gains and losses | 32 | 10,021 | 22,190 | 53,457 | |
Net realized and unrealized investment returns | 7,355 | 7,331 | (142) | 64,747 | |
Total investment return | $ 19,101 | $ 18,679 | $ 19,374 | $ 97,140 | |
Total investment return % | [1] | 1.20% | 1.20% | 1.30% | 6.20% |
Average investment portfolio | [2] | $ 1,541,227 | $ 1,585,165 | $ 1,528,005 | $ 1,562,177 |
[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 | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 256,952 | $ 431,356 |
On Deposit With Governmental Authorities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 27,082 | 26,431 |
Intercompany Trusts Held For Benefit Of U.S. Policyholders | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 142,496 | 179,116 |
Held In Trust Pursuant To Third Party Requirements | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 84,174 | 133,122 |
Letter Of Credit Held For Third Party Requirements | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 2,645 | 1,458 |
Securities Held As Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 555 | $ 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 | Sep. 30, 2020 | Dec. 31, 2019 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 230,418 | $ 274,710 | |
Fair Value | (17,931) | (10,275) | |
Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 200,000 | 200,000 | |
Fair Value | (17,931) | (10,275) | |
Futures Contracts on Bonds | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | [1] | 30,418 | 16,894 |
Fair Value | [1] | 0 | 0 |
Futures Contracts on Equities | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | [1] | 0 | 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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) for changes in fair value and net settlements of derivatives | $ 160 | $ (2,171) | $ (22,159) | $ (9,404) |
Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) for changes in fair value and net settlements of derivatives | 1,400 | 300 | 3,100 | 700 |
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 | 45 | (1,831) | (10,827) | (9,064) |
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 | 115 | 15 | (2,343) | 15 |
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 | $ 0 | $ (355) | $ (8,989) | $ (355) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Trading Futures Contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Initial margin in securities | $ 600,000 | $ 3,000,000 |
Mark-to-market receivable | 300,000 | |
Trading Futures Contracts | Maximum | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Mark-to-market payable | 100,000 | |
Other Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Funds needed to post execute swap transaction | 3,000,000 | 3,000,000 |
Other Assets | Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Margin calls made in connection with interest rate swaps | $ 18,600,000 | $ 12,500,000 |
Company's Invested Assets and D
Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | $ 1,303,775 | $ 1,253,159 |
Equity securities | 75,941 | 263,104 |
U.S. Treasury and Agency Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 201,957 | 156,689 |
Obligations of States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 62,001 | 63,838 |
Mortgage Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 401,084 | 328,374 |
Commercial Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 138,911 | 188,104 |
Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 139,150 | 168,537 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 258,861 | 248,259 |
Foreign Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 101,811 | 99,358 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 1,303,775 | 1,253,159 |
Equity securities | 75,941 | 263,104 |
Total invested assets | 1,379,716 | 1,516,263 |
Total invested liabilities | 17,931 | 10,275 |
Fair Value, Measurements, Recurring | Derivative instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested liabilities | 17,931 | 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 | 200,457 | 156,689 |
Equity securities | 64,673 | 251,448 |
Total invested assets | 265,130 | 408,137 |
Total invested liabilities | 0 | 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 | 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 | 1,103,318 | 1,096,470 |
Equity securities | 11,268 | 11,656 |
Total invested assets | 1,114,586 | 1,108,126 |
Total invested liabilities | 17,931 | 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 | 17,931 | 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 | 0 |
Equity securities | 0 | 0 |
Total invested assets | 0 | 0 |
Total invested liabilities | 0 | 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 | 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 | 201,957 | 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 | 200,457 | 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 | 1,500 | 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 | 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 | 62,001 | 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 | 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 | 62,001 | 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 | 0 |
Fair Value, Measurements, Recurring | Mortgage Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 401,084 | 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 | 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 | 401,084 | 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 | 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 | 138,911 | 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 | 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 | 138,911 | 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 | 0 |
Fair Value, Measurements, Recurring | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 139,150 | 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 | 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 | 139,150 | 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 | 0 |
Fair Value, Measurements, Recurring | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 258,861 | 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 | 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 | 258,861 | 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 | 0 |
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 101,811 | 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 | 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 | 101,811 | 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 | $ 0 |
Current Fair Value of Debt (Det
Current Fair Value of Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | $ 126,253 | $ 296,640 | |
Debt, fair value | 130,153 | 308,355 | |
7.75% Subordinated Notes due 2045 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | [1] | 0 | 96,864 |
Debt, fair value | [1] | 0 | 100,264 |
7.875% Subordinated Notes due 2047 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | [2] | 126,253 | 126,147 |
Debt, fair value | [2] | 130,153 | 134,462 |
Margin borrowing facilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | [3] | 0 | 73,629 |
Debt, fair value | [3] | $ 0 | $ 73,629 |
[1] | As of December 31, 2019, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of | ||
[2] | As of September 30, 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 $3.7 million and $3.9 million, respectively. | ||
[3] | The Margin Borrowing Facility was fully paid down in August 2020. |
Current Fair Value of Debt (Par
Current Fair Value of Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | Apr. 25, 2018 | Mar. 23, 2017 | Aug. 31, 2020 | Sep. 30, 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% | 7.75% | ||
Subordinated Notes due date | 2045 | 2045 | 2045 | 2045 | |
Unamortized Debt Issuance Costs | $ 3,136 | ||||
Write off of debt issuance costs | $ 3,100 | ||||
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 | 2047 | 2047 | |
Unamortized Debt Issuance Costs | $ 3,747 | $ 3,853 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 25, 2018 | Mar. 23, 2017 | Aug. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 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 | $ 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 | $ 3,500 | $ 1,300 | $ (8,000) | $ 1,400 | ||||
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% | 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 | 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 | 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 | Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 37,749 | $ 47,279 | |
Future Funding Commitments | 31,214 | 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] | 11,283 | 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] | 16,979 | 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] | 9,487 | 9,783 |
Future Funding Commitments | [3] | $ 0 | $ 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) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Premiums Receivable | ||
Beginning balance | $ 2,931 | $ 2,754 |
Current period provision for expected credit losses | 476 | 951 |
Write-offs | (538) | (836) |
Ending balance | 2,869 | 2,869 |
Reinsurance Receivables | ||
Beginning balance | 8,992 | 8,992 |
Current period provision for expected credit losses | 0 | 0 |
Write-offs | 0 | 0 |
Ending balance | $ 8,992 | $ 8,992 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income Tax [Line Items] | |||||
Effective income tax expense (benefit) rate | 17.50% | 5.00% | 26.90% | 11.20% | |
Alternative minimum tax credit carry forward | $ 11 | ||||
Net operating loss carryforwards | $ 24.9 | $ 24.9 | 21.9 | ||
Section 163(j) carryforward | 6.8 | 6.8 | $ 9 | ||
Alternative Minimum Tax Credits | |||||
Income Tax [Line Items] | |||||
Income tax refunds received | $ 5.5 | $ 11 | |||
UNITED STATES | |||||
Income Tax [Line Items] | |||||
Statutory income tax rates | 21.00% | 21.00% | |||
BERMUDA | |||||
Income Tax [Line Items] | |||||
Statutory income tax rates | 0.00% | 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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Gross written premiums | $ 143,749 | $ 157,177 | $ 464,022 | $ 478,699 |
Net written premiums | 130,611 | 138,836 | 416,987 | 421,321 |
Net earned premiums | 140,302 | 133,312 | 426,617 | 383,602 |
Net investment income | 11,746 | 11,348 | 19,516 | 32,393 |
Net realized investment gains (losses) | 7,323 | (2,690) | (22,332) | 11,290 |
Other income (loss) | 542 | 264 | 1,473 | 1,274 |
Total revenues | 159,913 | 142,234 | 425,274 | 428,559 |
Losses and Expenses: | ||||
Net losses and loss adjustment expenses | 97,148 | 73,583 | 242,092 | 201,979 |
Acquisition costs and other underwriting expenses | 53,268 | 53,366 | 163,258 | 153,643 |
Corporate and other operating expenses | 21,196 | 3,858 | 34,037 | 11,702 |
Interest expense | 3,620 | 5,023 | 13,197 | 15,088 |
Loss on extinguishment of debt | 3,060 | 0 | 3,060 | 0 |
Income (loss) before income taxes | (18,379) | 6,404 | (30,370) | 46,147 |
Non-U.S. Subsidiaries | ||||
Revenues: | ||||
Gross written premiums | 13,085 | 19,980 | 46,654 | 69,588 |
Net written premiums | 13,085 | 19,990 | 46,654 | 69,591 |
Net earned premiums | 9,983 | 19,512 | 53,384 | 52,798 |
Net investment income | 4,054 | 7,212 | 17,336 | 22,254 |
Net realized investment gains (losses) | 1,511 | 375 | (3,867) | 1,768 |
Other income (loss) | 164 | (234) | 148 | (256) |
Total revenues | 15,712 | 26,865 | 67,001 | 76,564 |
Losses and Expenses: | ||||
Net losses and loss adjustment expenses | 519 | 7,628 | 12,874 | 24,076 |
Acquisition costs and other underwriting expenses | 3,584 | 6,201 | 17,828 | 16,556 |
Corporate and other operating expenses | 17,283 | 1,514 | 23,357 | 4,822 |
Interest expense | 193 | 351 | 869 | 1,059 |
Loss on extinguishment of debt | 3,060 | 3,060 | ||
Income (loss) before income taxes | (8,927) | 11,171 | 9,013 | 30,051 |
U.S. Subsidiaries | ||||
Revenues: | ||||
Gross written premiums | 130,664 | 137,197 | 417,368 | 409,111 |
Net written premiums | 117,526 | 118,846 | 370,333 | 351,730 |
Net earned premiums | 130,319 | 113,800 | 373,233 | 330,804 |
Net investment income | 9,851 | 7,732 | 11,324 | 20,824 |
Net realized investment gains (losses) | 5,812 | (3,065) | (18,465) | 9,522 |
Other income (loss) | 378 | 498 | 1,325 | 1,530 |
Total revenues | 146,360 | 118,965 | 367,417 | 362,680 |
Losses and Expenses: | ||||
Net losses and loss adjustment expenses | 96,629 | 65,955 | 229,218 | 177,903 |
Acquisition costs and other underwriting expenses | 49,684 | 47,165 | 145,430 | 137,087 |
Corporate and other operating expenses | 3,913 | 2,344 | 10,680 | 6,880 |
Interest expense | 5,586 | 8,268 | 21,472 | 24,714 |
Loss on extinguishment of debt | 0 | 0 | ||
Income (loss) before income taxes | (9,452) | (4,767) | (39,383) | 16,096 |
Eliminations | ||||
Revenues: | ||||
Gross written premiums | 0 | 0 | 0 | 0 |
Net written premiums | 0 | 0 | 0 | 0 |
Net earned premiums | 0 | 0 | 0 | 0 |
Net investment income | (2,159) | (3,596) | (9,144) | (10,685) |
Net realized investment gains (losses) | 0 | 0 | 0 | 0 |
Other income (loss) | 0 | 0 | 0 | 0 |
Total revenues | (2,159) | (3,596) | (9,144) | (10,685) |
Losses and Expenses: | ||||
Net losses and loss adjustment expenses | 0 | 0 | 0 | 0 |
Acquisition costs and other underwriting expenses | 0 | 0 | 0 | 0 |
Corporate and other operating expenses | 0 | 0 | 0 | 0 |
Interest expense | (2,159) | (3,596) | (9,144) | (10,685) |
Loss on extinguishment of debt | 0 | 0 | ||
Income (loss) before income taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Components of Income Tax Expens
Components of Income Tax Expenses (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Current income tax expense (benefit): | ||||
Foreign | $ 130 | $ (17) | $ 130 | $ (35) |
U.S. Federal | 0 | 0 | 0 | 0 |
Total current income tax expense (benefit) | 130 | (17) | 130 | (35) |
Deferred income tax expense (benefit): | ||||
U.S. Federal | (3,339) | (300) | (8,303) | 5,198 |
Total deferred income tax expense (benefit) | (3,339) | (300) | (8,303) | 5,198 |
Total income tax expense (benefit) | $ (3,209) | $ (317) | $ (8,173) | $ 5,163 |
Differences in Tax Provision fo
Differences in Tax Provision for Financial Statement Purposes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Expected tax provision at weighted average tax rate | $ (1,985) | $ (1,001) | $ (8,270) | $ 3,380 |
Adjustments: | ||||
Tax exempt interest | (1) | 0 | (2) | (1) |
Dividend exclusion | (86) | (33) | (198) | (256) |
Non-deductible interest | 416 | 695 | 1,773 | 2,063 |
Change in tax status | (1,704) | 0 | (1,704) | 0 |
Parent income treated as partnership for tax | (146) | 0 | (146) | 0 |
Other | 297 | 22 | 374 | (23) |
Total income tax expense (benefit) | $ (3,209) | $ (317) | $ (8,173) | $ 5,163 |
Expected tax provision at weighted average | (10.80%) | (15.60%) | (27.20%) | (7.30%) |
Adjustments: | ||||
Tax exempt interest, % of Pre-Tax Income | 0.00% | 0.00% | 0.00% | 0.00% |
Dividend exclusion, % of Pre-Tax Income | (0.50%) | (0.50%) | (0.60%) | (0.60%) |
Non-deductible interest, % of Pre-Tax Income | 2.30% | 10.80% | 5.80% | (4.50%) |
Change in tax status, % of Pre-Tax Income | (9.30%) | 0.00% | (5.60%) | 0.00% |
Parent income treated as partnership for tax, % of Pre-Tax Income | (0.80%) | 0.00% | (0.50%) | 0.00% |
Other, % of Pre-Tax Income | 1.60% | 0.30% | 1.20% | 0.00% |
Effective income tax expense (benefit) | (17.50%) | (5.00%) | (26.90%) | (11.20%) |
Summarized Activity in Liabilit
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Insurance [Abstract] | ||||
Balance at beginning of period | $ 651,073 | $ 608,773 | $ 630,181 | $ 680,031 |
Less: Ceded reinsurance receivables | 87,221 | 59,834 | 76,273 | 109,342 |
Net balance at beginning of period | 563,852 | 548,939 | 553,908 | 570,689 |
Incurred losses and loss adjustment expenses related to: | ||||
Current year | 108,859 | 80,533 | 273,709 | 225,022 |
Prior years | (11,711) | (6,950) | (31,617) | (23,043) |
Total incurred losses and loss adjustment expenses | 97,148 | 73,583 | 242,092 | 201,979 |
Paid losses and loss adjustment expenses related to: | ||||
Current year | 60,114 | 47,290 | 119,541 | 102,806 |
Prior years | 29,612 | 20,789 | 105,185 | 115,419 |
Total paid losses and loss adjustment expenses | 89,726 | 68,079 | 224,726 | 218,225 |
Net balance at end of period | 571,274 | 554,443 | 571,274 | 554,443 |
Plus: Ceded reinsurance receivables | 98,656 | 78,844 | 98,656 | 78,844 |
Balance at end of period | $ 669,930 | $ 633,287 | $ 669,930 | $ 633,287 |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (11,711) | $ (6,950) | $ (31,617) | $ (23,043) |
Commercial Specialty | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (3,500) | (5,200) | (17,800) | (12,100) |
Commercial Specialty | General Liability | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (2,500) | (4,400) | (20,500) | (9,600) |
Commercial Specialty | General Liability | Accident Years 2005 through 2009 and 2012 | Construction Defect | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,900) | |||
Commercial Specialty | General Liability | Accident Year 1995, 2005, 2007 through 2012 and 2015 and 2016 through 2018 | Other General Liability | ||||
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 2004 Through 2012 and 2016 | Construction Defect | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (500) | (1,000) | ||
Commercial Specialty | General Liability | Accident Years 1999 through 2014 and 2016 and 2017 | Other General Liability | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (3,900) | |||
Commercial Specialty | General Liability | Accident Years 2005 through 2009, 2012, 2015 through 2017 | Construction Defect | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (6,600) | |||
Commercial Specialty | General Liability | Accident Years 2005 through 2016 and 2019 | Other General Liability | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (13,900) | |||
Commercial Specialty | General Liability | Accident Years 1999 Through 2018 | Other General Liability | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (8,600) | |||
Commercial Specialty | Property Lines | Accident Years 2017 through 2019 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 100 | 5,800 | ||
Commercial Specialty | Property Lines | Accident Years 2010, 2012 Through 2018 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (900) | |||
Commercial Specialty | Professional Liability | Accident Years 2006 through 2010 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,100) | |||
Commercial Specialty | Professional Liability | Accident Years 2007 through 2010 and 2019 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,900) | |||
Commercial Specialty | Professional Liability | Accident Years 2009 and 2010 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,100) | |||
Commercial Specialty | Commercial Auto Liability | Accident Years 2012,2013 and 2016 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (600) | |||
Commercial Specialty | Commercial Auto Liability | Accident Years 2010 and 2012 through 2016 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (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 | (1,400) | |||
Commercial Specialty | Workers Compensation | Accident Years 2012 and 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 | Reinsurance | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 1,000 | |||
Reinsurance Operations | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (4,900) | 700 | (5,100) | 3,500 |
Reinsurance Operations | Property Lines | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 3,800 | |||
Reinsurance Operations | Property Lines | Accident years 2009 through 2012 and 2014 through 2018 and 2019 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (3,200) | |||
Reinsurance Operations | Property Lines | Accident Years 2018 | Typhoon Jebi | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 7,600 | |||
Reinsurance Operations | Property Lines | Accident Years 2011, 2012, and 2014 through 2018 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | 700 | |||
Reinsurance Operations | Property Lines | Accident years 2009 through 2010 and 2012 through 2017 and 2019 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (3,400) | |||
Reinsurance Operations | Property Lines | Accident Years 2010 Through 2017 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (4,100) | |||
Reinsurance Operations | Professional Liability | Accident years 2014 and 2015 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,700) | (1,700) | ||
Reinsurance Operations | Professional Liability | Accident Years 2007, 2008 and 2010 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (300) | |||
Specialty Property | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (2,000) | (1,300) | (6,600) | (10,500) |
Specialty Property | General Liability | Accident Years 2017 and 2019 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (200) | |||
Specialty Property | General Liability | Accident Years 2010, 2014 through 2018 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (400) | |||
Specialty Property | General Liability | Accident Years 2015 through 2019 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (2,000) | |||
Specialty Property | General Liability | Accident Years 2010 and 2015 through 2017 | ||||
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 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (900) | (4,600) | (10,100) | |
Specialty Property | Property Lines | Accident Years 2017 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (200) | |||
Specialty Property | Property Lines | Accident Years 2017 | Catastrophe | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,800) | (1,800) | ||
Specialty Property | Property Lines | Accident Years 2018 | Catastrophe | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (600) | (8,900) | ||
Specialty Property | Property Lines | Accident Years 2015 through 2018 and 2019 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (2,800) | |||
Specialty Property | Property Lines | Accident Years 2016 and 2017 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,200) | |||
Farm, Ranch & Stable | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,300) | (1,200) | (2,100) | (4,000) |
Farm, Ranch & Stable | General Liability | Accident years 2013 and 2015 through 2016 and 2018 through 2019 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (100) | |||
Farm, Ranch & Stable | Property Lines | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (2,200) | |||
Farm, Ranch & Stable | Property Lines | Accident Years 2017 through 2019 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (1,300) | |||
Farm, Ranch & Stable | Property Lines | Accident Years 2018 | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (1,100) | (2,000) | ||
Farm, Ranch & Stable | Property Lines | Accident Years 2018 | Catastrophe | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (1,100) | |||
Farm, Ranch & Stable | Property Lines | Accident Years 2018 | Expected Claims Frequency And Severity | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | (900) | |||
Farm, Ranch & Stable | Property Lines | Accident Year 2016 Through 2019 | Catastrophe | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Changes in prior year reserve | $ (2,000) | |||
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) |
Outstanding Debt (Detail)
Outstanding Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Debt | $ 126,253 | $ 296,640 | |
7.75% Subordinated Notes due 2045 | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 0 | 96,864 |
7.875% Subordinated Notes due 2047 | |||
Debt Instrument [Line Items] | |||
Debt | [2] | 126,253 | 126,147 |
Margin borrowing facilities | |||
Debt Instrument [Line Items] | |||
Debt | [3] | $ 0 | $ 73,629 |
[1] | As of December 31, 2019, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of | ||
[2] | As of September 30, 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 $3.7 million and $3.9 million, respectively. | ||
[3] | The Margin Borrowing Facility was fully paid down in August 2020. |
Outstanding Debt (Parenthetical
Outstanding Debt (Parenthetical) (Detail) | Apr. 25, 2018 | Mar. 23, 2017 | Aug. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
7.75% Subordinated Notes due 2045 | |||||
Debt Instrument [Line Items] | |||||
Subordinated Notes percentage | 7.75% | 7.75% | 7.75% | ||
Subordinated Notes due date | 2045 | 2045 | 2045 | 2045 | |
7.875% Subordinated Notes due 2047 | |||||
Debt Instrument [Line Items] | |||||
Subordinated Notes percentage | 7.875% | 7.875% | |||
Subordinated Notes due date | 2047 | 2047 | 2047 | 2047 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Apr. 25, 2018 | Mar. 23, 2017 | Aug. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Mar. 30, 2017 | |
Debt Instrument [Line Items] | ||||||||||
Debt | $ 126,253,000 | $ 126,253,000 | $ 296,640,000 | |||||||
Interest expense | 3,620,000 | $ 5,023,000 | 13,197,000 | $ 15,088,000 | ||||||
Redemption of aggregate principal amount | 100,000,000 | 0 | ||||||||
Loss on extinguishment of debt | $ (3,060,000) | 0 | $ (3,060,000) | 0 | ||||||
Debt instrument, maturity date | Apr. 15, 2047 | |||||||||
Promissory notes | $ 230,000,000 | |||||||||
Promissory note settled | 2020-08 | |||||||||
7.75% Subordinated Notes due 2045 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate | 7.75% | 7.75% | 7.75% | 7.75% | ||||||
Debt | [1] | $ 0 | $ 0 | $ 96,864,000 | ||||||
Interest expense | $ 1,000,000 | 2,000,000 | $ 4,900,000 | 5,900,000 | ||||||
Subordinated Notes due date | 2045 | 2045 | 2045 | 2045 | ||||||
Redemption of aggregate principal amount | $ 100,000,000 | |||||||||
Redemption date | Aug. 15, 2020 | |||||||||
Loss on extinguishment of debt | $ 3,100 | |||||||||
7.875% Subordinated Notes due 2047 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate | 7.875% | 7.875% | 7.875% | |||||||
Debt | [2] | $ 126,253,000 | $ 126,253,000 | $ 126,147,000 | ||||||
Interest expense | 2,600,000 | 2,600,000 | $ 7,800,000 | 7,800,000 | ||||||
Subordinated Notes due date | 2047 | 2047 | 2047 | 2047 | ||||||
Debt instrument, face amount | $ 120,000 | 130,000 | $ 130,000 | |||||||
Number of days granted to underwriters option to purchase | 30 days | |||||||||
Additional aggregate principal amount purchased pursuant to over-allotment option granted to the underwriters | $ 18,000 | |||||||||
Debt instrument, interest rate terms | payable quarterly in arrears on January 15, April 15, July 15, and October 15 of each year | |||||||||
Debt instrument, maturity date | Apr. 15, 2047 | |||||||||
Debt instrument, redemption description | The Company has the right to redeem the 2047 Notes in $25 increments, in whole or in part, on and after April 15, 2022, or on any interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the 2047 Notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption. | |||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | |||||||||
Deferred issuance costs | $ 4,200,000 | $ 4,200,000 | ||||||||
7.875% Subordinated Notes due 2047 | Over-Allotment Option | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 10,000,000 | |||||||||
Margin borrowing facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate | 0.80% | 0.80% | 1.90% | |||||||
Collateral deposited to support borrowing | $ 0 | $ 0 | $ 88,200,000 | |||||||
Debt Securities, Available-for-sale, Restriction Type [Extensible List] | us-gaap:CollateralPledgedMember | us-gaap:CollateralPledgedMember | ||||||||
Debt | [3] | $ 0 | $ 0 | $ 73,629,000 | ||||||
Interest expense | $ 100,000 | $ 500,000 | $ 500,000 | $ 1,400,000 | ||||||
[1] | As of December 31, 2019, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of | |||||||||
[2] | As of September 30, 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 $3.7 million and $3.9 million, respectively. | |||||||||
[3] | The Margin Borrowing Facility was fully paid down in August 2020. |
Amounts Recorded for Margin Bor
Amounts Recorded for Margin Borrowing Facilities and Subordinated Notes (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Net Carrying Amount | $ 126,253 | $ 296,640 | |
7.75% Subordinated Notes due 2045 | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 100,000 | ||
Unamortized Debt Issuance Costs | (3,136) | ||
Net Carrying Amount | [1] | 0 | 96,864 |
7.875% Subordinated Notes due 2047 | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 130,000 | 130,000 | |
Unamortized Debt Issuance Costs | (3,747) | (3,853) | |
Net Carrying Amount | [2] | 126,253 | 126,147 |
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 130,000 | 230,000 | |
Unamortized Debt Issuance Costs | (3,747) | (6,989) | |
Net Carrying Amount | $ 126,253 | $ 223,011 | |
[1] | As of December 31, 2019, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of | ||
[2] | As of September 30, 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 $3.7 million and $3.9 million, respectively. |
Amounts Recorded for Margin B_2
Amounts Recorded for Margin Borrowing Facilities and Subordinated Notes (Parenthetical) (Detail) | Apr. 25, 2018 | Mar. 23, 2017 | Aug. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
7.875% Subordinated Notes due 2047 | |||||
Debt Instrument [Line Items] | |||||
Subordinated Notes percentage | 7.875% | 7.875% | |||
Subordinated Notes due date | 2047 | 2047 | 2047 | 2047 | |
7.75% Subordinated Notes due 2045 | |||||
Debt Instrument [Line Items] | |||||
Subordinated Notes percentage | 7.75% | 7.75% | 7.75% | ||
Subordinated Notes due date | 2045 | 2045 | 2045 | 2045 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | Aug. 27, 2020USD ($)Memberofboardofdirector$ / sharesshares | Sep. 30, 2020USD ($)Stockholder$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2020USD ($)Stockholder$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2019USD ($) |
Equity [Line Items] | ||||||
Shares repurchased | shares | 396 | |||||
Dividend & distribution payable, per share | $ / shares | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | ||
Accrued distributions | $ | $ 600,000 | $ 600,000 | $ 300,000 | |||
Maximum | ||||||
Equity [Line Items] | ||||||
Accrued preferred distributions | $ | $ 100,000 | $ 100,000 | ||||
Series A Preferred Interest | ||||||
Equity [Line Items] | ||||||
Preferred shares issued | shares | 4,000 | |||||
Shares issued, price per share | $ / shares | $ 1,000 | |||||
Preferred shares issued | $ | $ 4,000,000 | |||||
Preferred shareholders entitled to appoint number of additional members to board of directors | Memberofboardofdirector | 2 | |||||
Class A Common Shares | ||||||
Equity [Line Items] | ||||||
Shares repurchased | shares | 0 | 5,120 | 27,028 | |||
Number of shareholders | Stockholder | 190 | 190 | ||||
Class B Common Shares | ||||||
Equity [Line Items] | ||||||
Shares repurchased | shares | 0 | 0 | 0 | 0 | ||
Number of shareholders | Stockholder | 4 | 4 | ||||
Additional Paid-in Capital | ||||||
Equity [Line Items] | ||||||
Offset treasury shares due to redomestication | $ | $ 4,126,000 | $ 0 | $ 4,126,000 | $ 0 |
Information with Respect to Cla
Information with Respect to Class A Common Shares that were Surrendered or Repurchased (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |||
Equity, Class of Treasury Stock [Line Items] | ||||||
Total Number of Shares Purchased | 396 | |||||
Average Price Paid Per Share | $ 24.95 | |||||
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | |||||
Class A Common Shares | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Total Number of Shares Purchased | 0 | 5,120 | 27,028 | |||
Average Price Paid Per Share | $ 29.74 | $ 35.07 | ||||
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | 0 | 0 | ||||
August 1-31, 2020 | Class A Common Shares | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Total Number of Shares Purchased | [1] | 396 | [2] | 396 | ||
Average Price Paid Per Share | [1] | $ 24.95 | $ 24.95 | |||
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | 0 | |||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1] | $ 0 | $ 0 | |||
January 1-31, 2020 | Class A Common Shares | ||||||
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 | $ 0 | |||
February 1-29, 2020 | Class A Common Shares | ||||||
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 | $ 0 | |||
January 1-31, 2019 | Class A Common Shares | ||||||
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 | $ 0 | |||
February 1-28, 2019 | Class A Common Shares | ||||||
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 | $ 0 | |||
[1] | Based on settlement date. | |||||
[2] | Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. |
Schedule of Dividends & Distrib
Schedule of Dividends & Distributions Declared (Detail) - USD ($) $ in Thousands | Sep. 13, 2020 | Jun. 30, 2020 | Jun. 07, 2020 | Mar. 31, 2020 | Feb. 09, 2020 | Oct. 02, 2019 | Sep. 15, 2019 | Jun. 28, 2019 | Jun. 02, 2019 | Mar. 29, 2019 | Feb. 10, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Dividends Payable [Line Items] | ||||||||||||||
Approval Date | Sep. 13, 2020 | Jun. 7, 2020 | Feb. 9, 2020 | Sep. 15, 2019 | Jun. 2, 2019 | Feb. 10, 2019 | ||||||||
Record Date | Sep. 25, 2020 | Jun. 23, 2020 | Mar. 24, 2020 | Sep. 26, 2019 | Jun. 21, 2019 | Mar. 22, 2019 | ||||||||
Payment Date | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Oct. 2, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | ||||||||
Payment of dividends | $ 3,552 | $ 3,545 | $ 3,539 | $ 3,528 | $ 3,525 | $ 3,521 | $ 10,973 | $ 10,765 | ||||||
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] | $ 337 | $ 191 | |||||||||||
[1] | Represents dividends declared on unvested shares, net of forfeitures. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Aug. 27, 2020 | May 06, 2020 | May 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Series A Preferred Interest | ||||||||
Related Party Transaction [Line Items] | ||||||||
Preferred shares issued | 4,000 | |||||||
Shares issued, price per share | $ 1,000 | |||||||
Preferred shares issued | $ 4,000,000 | |||||||
Preferred Stock, non-voting description | While the preferred shares are non-voting, the preferred shareholders are entitled to appoint two additional members to the Company’s Board of Directors whenever the “Unpaid Targeted Priority Return” with respect to the preferred shares exceed zero immediately following six or more “Distribution Dates”, whether or not such Distribution Dates occur consecutively. | |||||||
Fox Paine Funds | ||||||||
Related Party Transaction [Line Items] | ||||||||
Company's total voting power | 77.50% | 77.50% | ||||||
FM Entities | ||||||||
Related Party Transaction [Line Items] | ||||||||
Company's total voting power | 4.80% | 4.80% | ||||||
Fox Paine Entities | ||||||||
Related Party Transaction [Line Items] | ||||||||
Minimum voting power required to nominate Directors | 25.00% | 25.00% | ||||||
Wyncote LLC | Series A Preferred Interest | ||||||||
Related Party Transaction [Line Items] | ||||||||
Preferred shares issued | 4,000 | |||||||
Shares issued, price per share | $ 1,000 | |||||||
Preferred shares issued | $ 4,000,000 | |||||||
Fox Paine and Company | ||||||||
Related Party Transaction [Line Items] | ||||||||
Elimination of reimbursable expenses | $ 550,000 | |||||||
Increase in management fee | $ 550,000 | |||||||
Management fees | $ 600,000 | $ 500,000 | $ 2,000,000 | $ 1,500,000 | ||||
Prepaid management fees | $ 2,500,000 | 2,500,000 | $ 1,400,000 | |||||
Advisory services fees, accrued | $ 2,000,000 | 10,000,000 | ||||||
Advisory services fees paid | 10,000,000 | |||||||
Advisory services fees approved by conflicts committee | $ 10,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 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 | $ 31,214 | $ 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 | |||
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 |
Share-Based Compensation Plans
Share-Based Compensation Plans - Additional Information (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options awarded | 0 | 0 | 0 | 0 |
Unvested stock options forfeited | 0 | 0 | 0 | 0 |
Restricted Stock | Key Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 0 | 0 | 0 | 36,180 |
Weighted average fair value per share | $ 35.82 | |||
Shares vested | 9,063 | |||
Stock options, vested and expected to vest | 27,117 | 27,117 | ||
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 | 29,893 | 19,275 | 81,502 | 50,661 |
Weighted average fair value per share | $ 22.58 | $ 24.97 | $ 24.85 | $ 28.50 |
Restricted Stock Units | Key Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 0 | 0 | 161,238 | 175,498 |
Weighted average fair value per share | $ 30.32 | $ 30.18 | ||
Shares vested | 3,375 | |||
Vesting year | 3 years | |||
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 | 10.00% | 10.00% | ||
Vesting date | Jun. 18, 2021 | Jun. 18, 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 | 20.00% | 20.00% | ||
Vesting date | Jun. 18, 2022 | Jun. 18, 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 | 30.00% | 30.00% | ||
Vesting date | Jun. 18, 2023 | Jun. 18, 2023 | ||
Restricted Stock Units | Key Employees | Vesting Schedule Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, vested and expected to vest | 90,906 | 90,906 | ||
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% | |||
Restricted Stock Units | Key Employees | Vesting Schedule One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, vested and expected to vest | 66,957 | 66,957 | ||
Restricted Stock Units | Key Employees | Share-based Compensation Award, Tranche 4 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares vested on each anniversary of the grant date | 40.00% | 40.00% | ||
Vesting date | Jun. 18, 2024 | Jun. 18, 2024 | ||
Restricted Stock Units | Key Employees | Share-based Payment Arrangement, Tranche 5 | ||||
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 6 | ||||
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 7 | ||||
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 | Non Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 41,667 | 41,667 | ||
Vesting year | 3 years | |||
Restricted Stock Units | Non Employee Director | Share-based Payment Arrangement, Tranche 1 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting date | Jan. 1, 2022 | |||
Restricted Stock Units | Non Employee Director | Share-based Compensation Award, Tranche 2 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting date | Jan. 1, 2023 | |||
Restricted Stock Units | Non Employee Director | Share-based Compensation Award, Tranche 3 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting date | Jan. 1, 2024 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Numerator: | |||||
Net income (loss) | $ (15,170) | $ 6,721 | $ (22,197) | $ 40,984 | |
Less: preferred stock distributions | 42 | 42 | |||
Net income (loss) available to common shareholders | $ (15,212) | $ 6,721 | $ (22,239) | $ 40,984 | |
Denominator: | |||||
Weighted average shares for basic earnings per share | 14,304,426 | 14,202,859 | 14,276,594 | 14,181,530 | |
Weighted average shares for diluted earnings per share | 14,304,426 | 14,327,757 | 14,276,594 | 14,328,861 | |
Basic | [1] | $ (1.06) | $ 0.47 | $ (1.56) | $ 2.89 |
Diluted | [1] | $ (1.06) | $ 0.47 | $ (1.56) | $ 2.86 |
Restricted Stock | |||||
Denominator: | |||||
Non-vested restricted stock, units and options | 23,059 | 19,201 | |||
Restricted Stock Units | |||||
Denominator: | |||||
Non-vested restricted stock, units and options | 0 | 2,954 | |||
Stock Options | |||||
Denominator: | |||||
Non-vested restricted stock, units and options | 101,839 | 125,176 | |||
[1] | For the quarter and nine months ended September 30, 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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Incremental shares included in calculation of diluted EPS | 14,444,326 | 14,421,393 | ||
Shares excluded from calculation of diluted earnings per share | 572,957 | 500,000 | 572,957 | 500,000 |
Restricted Stock Diluted | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Non-vested restricted stock, units and options | 18,218 | 15,366 | ||
Restricted Stock Units Diluted | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Non-vested restricted stock, units and options | 48,846 | 36,796 | ||
Stock Options Diluted | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Non-vested restricted stock, units and options | 72,836 | 92,637 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||
Revenues: | ||||||
Gross written premiums | $ 143,749 | $ 157,177 | $ 464,022 | $ 478,699 | ||
Net written premiums | 130,611 | 138,836 | 416,987 | 421,321 | ||
Net earned premiums | 140,302 | 133,312 | 426,617 | 383,602 | ||
Other income (loss) | 597 | 264 | 1,509 | 1,274 | ||
Total revenues | 140,899 | 133,576 | 428,126 | 384,876 | ||
Losses and Expenses: | ||||||
Net losses and loss adjustment expenses | 97,148 | 73,583 | 242,092 | 201,979 | ||
Acquisition costs and other underwriting expenses | 53,268 | 53,366 | 163,258 | 153,643 | ||
Income (loss) from segments | (9,517) | 6,627 | 22,776 | 29,254 | ||
Unallocated Items: | ||||||
Net investment income | 11,746 | 11,348 | 19,516 | 32,393 | ||
Net realized investment gains (losses) | 7,323 | (2,690) | (22,332) | 11,290 | ||
Other loss | (55) | (36) | ||||
Corporate and other operating expenses | (21,196) | (3,858) | (34,037) | (11,702) | ||
Interest expense | (3,620) | (5,023) | (13,197) | (15,088) | ||
Loss on extinguishment of debt | (3,060) | 0 | (3,060) | 0 | ||
Income (loss) before income taxes | (18,379) | 6,404 | (30,370) | 46,147 | ||
Income tax (expense) benefit | 3,209 | 317 | 8,173 | (5,163) | ||
Net income (loss) | (15,170) | 6,721 | (22,197) | 40,984 | ||
Total assets | 1,939,757 | 2,084,156 | 1,939,757 | 2,084,156 | $ 2,075,885 | |
Segment Assets | ||||||
Unallocated Items: | ||||||
Total assets | 1,367,301 | 1,433,897 | 1,367,301 | 1,433,897 | ||
Corporate Assets | ||||||
Unallocated Items: | ||||||
Total assets | 572,456 | 650,259 | 572,456 | 650,259 | ||
Commercial Specialty | ||||||
Revenues: | ||||||
Gross written premiums | [1] | 74,971 | 73,175 | 243,099 | 214,467 | |
Net written premiums | [1] | 69,074 | 62,925 | 219,437 | 185,202 | |
Net earned premiums | [1] | 73,887 | 60,869 | 211,329 | 173,215 | |
Other income (loss) | [1] | 0 | 0 | 0 | 0 | |
Total revenues | [1] | 73,887 | 60,869 | 211,329 | 173,215 | |
Losses and Expenses: | ||||||
Net losses and loss adjustment expenses | [1] | 42,879 | 27,389 | 109,191 | 81,731 | |
Acquisition costs and other underwriting expenses | [1] | 26,943 | 24,820 | 79,452 | 70,522 | |
Income (loss) from segments | [1] | 4,065 | 8,660 | 22,686 | 20,962 | |
Commercial Specialty | Segment Assets | ||||||
Unallocated Items: | ||||||
Total assets | [1] | 752,002 | 705,260 | 752,002 | 705,260 | |
Specialty Property | ||||||
Revenues: | ||||||
Gross written premiums | [1] | 34,730 | 42,611 | 107,951 | 128,771 | |
Net written premiums | [1] | 29,971 | 37,628 | 93,053 | 110,668 | |
Net earned premiums | [1] | 31,388 | 34,554 | 99,147 | 104,740 | |
Other income (loss) | [1] | 450 | 465 | 1,306 | 1,406 | |
Total revenues | [1] | 31,838 | 35,019 | 100,453 | 106,146 | |
Losses and Expenses: | ||||||
Net losses and loss adjustment expenses | [1] | 34,430 | 25,997 | 65,619 | 57,611 | |
Acquisition costs and other underwriting expenses | [1] | 13,364 | 14,571 | 41,357 | 44,163 | |
Income (loss) from segments | [1] | (15,956) | (5,549) | (6,523) | 4,372 | |
Specialty Property | Segment Assets | ||||||
Unallocated Items: | ||||||
Total assets | [1] | 207,831 | 246,080 | 207,831 | 246,080 | |
Farm, Ranch & Stable | ||||||
Revenues: | ||||||
Gross written premiums | [1] | 19,443 | 21,410 | 64,798 | 65,872 | |
Net written premiums | [1] | 16,961 | 18,294 | 56,323 | 55,861 | |
Net earned premiums | [1] | 19,978 | 18,377 | 57,691 | 52,849 | |
Other income (loss) | [1] | 35 | 34 | 107 | 96 | |
Total revenues | [1] | 20,013 | 18,411 | 57,798 | 52,945 | |
Losses and Expenses: | ||||||
Net losses and loss adjustment expenses | [1] | 14,649 | 10,939 | 37,698 | 32,203 | |
Acquisition costs and other underwriting expenses | [1] | 7,443 | 7,776 | 22,687 | 22,403 | |
Income (loss) from segments | [1] | (2,079) | (304) | (2,587) | (1,661) | |
Farm, Ranch & Stable | Segment Assets | ||||||
Unallocated Items: | ||||||
Total assets | [1] | 137,697 | 136,420 | 137,697 | 136,420 | |
Reinsurance Operations | ||||||
Revenues: | ||||||
Gross written premiums | [2] | 14,605 | 19,981 | 48,174 | 69,589 | |
Net written premiums | [2] | 14,605 | 19,989 | 48,174 | 69,590 | |
Net earned premiums | [2] | 15,049 | 19,512 | 58,450 | 52,798 | |
Other income (loss) | [2] | 112 | (235) | 96 | (228) | |
Total revenues | [2] | 15,161 | 19,277 | 58,546 | 52,570 | |
Losses and Expenses: | ||||||
Net losses and loss adjustment expenses | [2] | 5,190 | 9,258 | 29,584 | 30,434 | |
Acquisition costs and other underwriting expenses | [2] | 5,518 | 6,199 | 19,762 | 16,555 | |
Income (loss) from segments | [2] | 4,453 | 3,820 | 9,200 | 5,581 | |
Reinsurance Operations | Segment Assets | ||||||
Unallocated Items: | ||||||
Total assets | [2] | $ 269,771 | $ 346,137 | $ 269,771 | $ 346,137 | |
[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) | 9 Months Ended |
Sep. 30, 2020 | |
GBLI Holdings, 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 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |||||
ASSETS | |||||||||||
Total investments | $ 1,417,465 | $ 1,563,542 | |||||||||
Cash and cash equivalents | 37,211 | 44,271 | $ 78,181 | $ 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 | 109,820 | 118,035 | |||||||||
Reinsurance receivables, net | 112,633 | 83,938 | |||||||||
Funds held by ceding insurers | 46,894 | 48,580 | |||||||||
Federal income taxes receivable | 0 | 10,989 | |||||||||
Deferred federal income taxes | 35,300 | 31,077 | |||||||||
Deferred acquisition costs | 67,470 | 70,677 | |||||||||
Intangible assets | 21,094 | 21,491 | |||||||||
Goodwill | 6,521 | 6,521 | |||||||||
Prepaid reinsurance premiums | 15,558 | 16,716 | |||||||||
Other assets | 69,791 | 60,048 | |||||||||
Total assets | 1,939,757 | 2,075,885 | 2,084,156 | ||||||||
Liabilities: | |||||||||||
Unpaid losses and loss adjustment expenses | 669,930 | $ 651,073 | 630,181 | 633,287 | $ 608,773 | 680,031 | |||||
Unearned premiums | 304,074 | 314,861 | |||||||||
Ceded balances payable | 9,576 | 20,404 | |||||||||
Payable for securities purchased | 5,630 | 850 | |||||||||
Contingent commissions | 11,329 | 11,928 | |||||||||
Debt | 126,253 | 296,640 | |||||||||
Notes payable – affiliates | 0 | 0 | |||||||||
Accrued interest payable – affiliates | 0 | 0 | |||||||||
Other liabilities | 92,252 | 74,212 | |||||||||
Total liabilities | 1,219,044 | 1,349,076 | |||||||||
Shareholders’ equity | |||||||||||
Total shareholders’ equity | 720,713 | 726,809 | 707,384 | ||||||||
Total liabilities and shareholders’ equity | 1,939,757 | 2,075,885 | |||||||||
Global Indemnity Group, LLC (Parent co-obligor) | Reportable Legal Entities | |||||||||||
ASSETS | |||||||||||
Total investments | 212,050 | 44,468 | |||||||||
Cash and cash equivalents | 13,765 | [1] | 977 | [1] | 3,604 | 2,221 | |||||
Investments in subsidiaries | 491,851 | 1,218,491 | |||||||||
Due from subsidiaries and affiliates | (3,999) | (3,612) | |||||||||
Notes receivable – affiliate | 11,283 | 0 | |||||||||
Interest receivable – affiliate | 16 | 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 | |||||||||
Other assets | 13,240 | 9,394 | |||||||||
Total assets | 738,206 | 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 | 2,207 | 0 | |||||||||
Contingent commissions | 0 | 0 | |||||||||
Debt | 0 | 0 | |||||||||
Notes payable – affiliates | 0 | 520,498 | |||||||||
Accrued interest payable – affiliates | 0 | 20,343 | |||||||||
Other liabilities | 15,286 | 2,068 | |||||||||
Total liabilities | 17,493 | 542,909 | |||||||||
Shareholders’ equity | |||||||||||
Total shareholders’ equity | 720,713 | 726,809 | |||||||||
Total liabilities and shareholders’ equity | 738,206 | 1,269,718 | |||||||||
GBLI Holdings, LLC (Subsidiary co-obligor) | Reportable Legal Entities | |||||||||||
ASSETS | |||||||||||
Total investments | 48,940 | 257,317 | |||||||||
Cash and cash equivalents | 2,575 | 2,663 | 22,966 | 26,039 | |||||||
Investments in subsidiaries | 387,913 | 355,777 | |||||||||
Due from subsidiaries and affiliates | (7,522) | (3,965) | |||||||||
Notes receivable – affiliate | 0 | 80,049 | |||||||||
Interest receivable – affiliate | 0 | 5,014 | |||||||||
Premiums receivable, net | 0 | 0 | |||||||||
Reinsurance receivables, net | 0 | 0 | |||||||||
Funds held by ceding insurers | 0 | 0 | |||||||||
Federal income taxes receivable | 2,892 | 14,197 | |||||||||
Deferred federal income taxes | 38,805 | 31,833 | |||||||||
Deferred acquisition costs | 0 | 0 | |||||||||
Intangible assets | 0 | 0 | |||||||||
Goodwill | 0 | 0 | |||||||||
Prepaid reinsurance premiums | 0 | 0 | |||||||||
Other assets | 19,444 | 12,622 | |||||||||
Total assets | 493,047 | 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 | 130,000 | 303,629 | |||||||||
Notes payable – affiliates | 0 | 0 | |||||||||
Accrued interest payable – affiliates | 0 | 0 | |||||||||
Other liabilities | 23,663 | 17,600 | |||||||||
Total liabilities | 153,663 | 321,229 | |||||||||
Shareholders’ equity | |||||||||||
Total shareholders’ equity | 339,384 | 434,278 | |||||||||
Total liabilities and shareholders’ equity | 493,047 | 755,507 | |||||||||
Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) | |||||||||||
ASSETS | |||||||||||
Total investments | 1,156,475 | [2] | 1,261,757 | [3] | |||||||
Cash and cash equivalents | 20,871 | [2] | 40,631 | [2],[3] | $ 51,611 | [3] | $ 71,237 | [3] | |||
Investments in subsidiaries | 339,384 | [2] | 434,278 | [3] | |||||||
Due from subsidiaries and affiliates | 11,521 | [2] | 7,577 | [3] | |||||||
Notes receivable – affiliate | 0 | [2] | 445,498 | [3] | |||||||
Interest receivable – affiliate | 0 | [2] | 17,258 | [3] | |||||||
Premiums receivable, net | 109,820 | [2] | 118,035 | [3] | |||||||
Reinsurance receivables, net | 112,633 | [2] | 83,938 | [3] | |||||||
Funds held by ceding insurers | 46,894 | [2] | 48,580 | [3] | |||||||
Federal income taxes receivable | (2,892) | [2] | (3,208) | [3] | |||||||
Deferred federal income taxes | (3,505) | [2] | (756) | [3] | |||||||
Deferred acquisition costs | 67,470 | [2] | 70,677 | [3] | |||||||
Intangible assets | 21,094 | [2] | 21,491 | [3] | |||||||
Goodwill | 6,521 | [2] | 6,521 | [3] | |||||||
Prepaid reinsurance premiums | 15,558 | [2] | 16,716 | [3] | |||||||
Other assets | 40,854 | [2] | 45,021 | [3] | |||||||
Total assets | 1,942,698 | [2] | 2,614,014 | [3] | |||||||
Liabilities: | |||||||||||
Unpaid losses and loss adjustment expenses | 669,930 | [2] | 630,181 | [3] | |||||||
Unearned premiums | 304,074 | [2] | 314,861 | [3] | |||||||
Ceded balances payable | 9,576 | [2] | 20,404 | [3] | |||||||
Payable for securities purchased | 3,423 | [2] | 850 | [3] | |||||||
Contingent commissions | 11,329 | [2] | 11,928 | [3] | |||||||
Debt | 0 | [2] | 0 | [3] | |||||||
Notes payable – affiliates | 11,283 | [2] | 5,049 | [3] | |||||||
Accrued interest payable – affiliates | 16 | [2] | 1,929 | [3] | |||||||
Other liabilities | 53,303 | [2] | 54,544 | [3] | |||||||
Total liabilities | 1,062,934 | [2] | 1,039,746 | [3] | |||||||
Shareholders’ equity | |||||||||||
Total shareholders’ equity | 879,764 | [2] | 1,574,268 | [3] | |||||||
Total liabilities and shareholders’ equity | 1,942,698 | [2] | 2,614,014 | [3] | |||||||
Consolidation Adjustments | |||||||||||
ASSETS | |||||||||||
Total investments | [4] | 0 | 0 | ||||||||
Cash and cash equivalents | [4] | 0 | 0 | ||||||||
Investments in subsidiaries | [4] | (1,219,148) | (2,008,546) | ||||||||
Due from subsidiaries and affiliates | [4] | 0 | 0 | ||||||||
Notes receivable – affiliate | [4] | (11,283) | (525,547) | ||||||||
Interest receivable – affiliate | [4] | (16) | (22,272) | ||||||||
Premiums receivable, net | [4] | 0 | 0 | ||||||||
Reinsurance receivables, net | [4] | 0 | 0 | ||||||||
Funds held by ceding insurers | [4] | 0 | 0 | ||||||||
Federal income taxes receivable | [4] | 0 | 0 | ||||||||
Deferred federal income taxes | [4] | 0 | 0 | ||||||||
Deferred acquisition costs | [4] | 0 | 0 | ||||||||
Intangible assets | [4] | 0 | 0 | ||||||||
Goodwill | [4] | 0 | 0 | ||||||||
Prepaid reinsurance premiums | [4] | 0 | 0 | ||||||||
Other assets | [4] | (3,747) | (6,989) | ||||||||
Total assets | [4] | (1,234,194) | (2,563,354) | ||||||||
Liabilities: | |||||||||||
Unpaid losses and loss adjustment expenses | [4] | 0 | 0 | ||||||||
Unearned premiums | [4] | 0 | 0 | ||||||||
Ceded balances payable | [4] | 0 | 0 | ||||||||
Payable for securities purchased | [4] | 0 | 0 | ||||||||
Contingent commissions | [4] | 0 | 0 | ||||||||
Debt | [4] | (3,747) | (6,989) | ||||||||
Notes payable – affiliates | [4] | (11,283) | (525,547) | ||||||||
Accrued interest payable – affiliates | [4] | (16) | (22,272) | ||||||||
Other liabilities | [4] | 0 | 0 | ||||||||
Total liabilities | [4] | (15,046) | (554,808) | ||||||||
Shareholders’ equity | |||||||||||
Total shareholders’ equity | [4] | (1,219,148) | (2,008,546) | ||||||||
Total liabilities and shareholders’ equity | [4] | $ (1,234,194) | $ (2,563,354) | ||||||||
[1] | Includes activity for Global Indemnity Limited from January 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 | ||||||||||
[2] | Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations | ||||||||||
[3] | Includes all other subsidiaries of Global Indemnity Limited and eliminations | ||||||||||
[4] | 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 | 9 Months Ended | |||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||||||
Revenues: | |||||||||
Net earned premiums | $ 140,302 | $ 133,312 | $ 426,617 | $ 383,602 | |||||
Net investment income | 11,746 | 11,348 | 19,516 | 32,393 | |||||
Net realized investment gains (losses) | 7,323 | (2,690) | (22,332) | 11,290 | |||||
Other income (loss) | 542 | 264 | 1,473 | 1,274 | |||||
Total revenues | 159,913 | 142,234 | 425,274 | 428,559 | |||||
Losses and Expenses: | |||||||||
Net losses and loss adjustment expenses | 97,148 | 73,583 | 242,092 | 201,979 | |||||
Acquisition costs and other underwriting expenses | 53,268 | 53,366 | 163,258 | 153,643 | |||||
Corporate and other operating expenses | 21,196 | 3,858 | 34,037 | 11,702 | |||||
Interest expense | 3,620 | 5,023 | 13,197 | 15,088 | |||||
Loss on extinguishment of debt | 3,060 | 0 | 3,060 | 0 | |||||
Income (loss) before income taxes | (18,379) | 6,404 | (30,370) | 46,147 | |||||
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 | |||||
Income (loss) before income taxes | (18,379) | 6,404 | (30,370) | 46,147 | |||||
Income tax expense (benefit) | (3,209) | (317) | (8,173) | 5,163 | |||||
Net income (loss) | (15,170) | 6,721 | (22,197) | 40,984 | |||||
Global Indemnity Group, LLC (Parent co-obligor) | Reportable Legal Entities | |||||||||
Revenues: | |||||||||
Net earned premiums | 0 | [1] | 0 | 0 | [2] | 0 | |||
Net investment income | 1,300 | [1] | 393 | 1,898 | [2] | 1,764 | |||
Net realized investment gains (losses) | 451 | [1] | (101) | (2,295) | [2] | 298 | |||
Other income (loss) | (1) | [1] | 0 | (1) | [2] | 0 | |||
Total revenues | 1,750 | [1] | 292 | (398) | [2] | 2,062 | |||
Losses and Expenses: | |||||||||
Net losses and loss adjustment expenses | 0 | [1] | 0 | 0 | [2] | 0 | |||
Acquisition costs and other underwriting expenses | 0 | [1] | 0 | 0 | [2] | 0 | |||
Corporate and other operating expenses | 17,324 | [1] | 1,320 | 23,466 | [2] | 4,306 | |||
Interest expense | 179 | [1] | 278 | 732 | [2] | 829 | |||
Loss on extinguishment of debt | 3,060 | [1] | 3,060 | [2] | |||||
Income (loss) before income taxes | (18,813) | [1] | (1,306) | (27,656) | [2] | (3,073) | |||
Equity in net income (loss) of subsidiaries | 3,643 | [1] | 8,027 | 5,459 | [2] | 44,057 | |||
Income (loss) before income taxes | (15,170) | [1] | 6,721 | (22,197) | [2] | 40,984 | |||
Income tax expense (benefit) | 0 | [1] | 0 | 0 | [2] | 0 | |||
Net income (loss) | (15,170) | [1] | 6,721 | (22,197) | [2] | 40,984 | |||
GBLI Holdings, LLC (Subsidiary co-obligor) | Reportable Legal Entities | |||||||||
Revenues: | |||||||||
Net earned premiums | 0 | 0 | 0 | 0 | |||||
Net investment income | 4,642 | 2,798 | (3,870) | 5,743 | |||||
Net realized investment gains (losses) | 4,107 | (3,525) | (36,600) | 7,969 | |||||
Other income (loss) | 0 | 0 | 19 | 30 | |||||
Total revenues | 8,749 | (727) | (40,451) | 13,742 | |||||
Losses and Expenses: | |||||||||
Net losses and loss adjustment expenses | 0 | 0 | 0 | 0 | |||||
Acquisition costs and other underwriting expenses | 0 | 0 | 0 | 0 | |||||
Corporate and other operating expenses | 3,662 | 2,159 | 10,143 | 6,406 | |||||
Interest expense | 3,569 | 4,957 | 13,005 | 14,875 | |||||
Loss on extinguishment of debt | 0 | 0 | |||||||
Income (loss) before income taxes | 1,518 | (7,843) | (63,599) | (7,539) | |||||
Equity in net income (loss) of subsidiaries | (10,312) | 1,699 | 22,509 | 16,597 | |||||
Income (loss) before income taxes | (8,794) | (6,144) | (41,090) | 9,058 | |||||
Income tax expense (benefit) | (3,010) | (1,682) | (15,441) | (1,845) | |||||
Net income (loss) | (5,784) | (4,462) | (25,649) | 10,903 | |||||
Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) | |||||||||
Revenues: | |||||||||
Net earned premiums | 140,302 | [3] | 133,312 | [4] | 426,617 | [3] | 383,602 | [3] | |
Net investment income | 5,976 | [3] | 8,442 | [4] | 22,203 | [3] | 25,747 | [3] | |
Net realized investment gains (losses) | 2,765 | [3] | 936 | [4] | 16,563 | [3] | 3,023 | [3] | |
Other income (loss) | 543 | [3] | 264 | [4] | 1,455 | [3] | 1,244 | [3] | |
Total revenues | 149,586 | [3] | 142,954 | [4] | 466,838 | [3] | 413,616 | [3] | |
Losses and Expenses: | |||||||||
Net losses and loss adjustment expenses | 97,148 | [3] | 73,583 | [4] | 242,092 | [3] | 201,979 | [3] | |
Acquisition costs and other underwriting expenses | 53,268 | [3] | 53,366 | [4] | 163,258 | [3] | 153,643 | [3] | |
Corporate and other operating expenses | 210 | [3] | 379 | [4] | 428 | [3] | 990 | [3] | |
Interest expense | 44 | [3] | 73 | [4] | 175 | [3] | 245 | [3] | |
Loss on extinguishment of debt | [3] | 0 | 0 | ||||||
Income (loss) before income taxes | (1,084) | [3] | 15,553 | [4] | 60,885 | [3] | 56,759 | [3] | |
Equity in net income (loss) of subsidiaries | (5,784) | [3] | (4,462) | [4] | (25,649) | [3] | 10,903 | [3] | |
Income (loss) before income taxes | (6,868) | [3] | 11,091 | [4] | 35,236 | [3] | 67,662 | [3] | |
Income tax expense (benefit) | (199) | [3] | 1,365 | [4] | 7,268 | [3] | 7,008 | [3] | |
Net income (loss) | (6,669) | [3] | 9,726 | [4] | 27,968 | [3] | 60,654 | [3] | |
Consolidation Adjustments | |||||||||
Revenues: | |||||||||
Net earned premiums | [5] | 0 | 0 | 0 | 0 | ||||
Net investment income | [5] | (172) | (285) | (715) | (861) | ||||
Net realized investment gains (losses) | [5] | 0 | 0 | 0 | 0 | ||||
Other income (loss) | [5] | 0 | 0 | 0 | 0 | ||||
Total revenues | [5] | (172) | (285) | (715) | (861) | ||||
Losses and Expenses: | |||||||||
Net losses and loss adjustment expenses | [5] | 0 | 0 | 0 | 0 | ||||
Acquisition costs and other underwriting expenses | [5] | 0 | 0 | 0 | 0 | ||||
Corporate and other operating expenses | [5] | 0 | 0 | 0 | 0 | ||||
Interest expense | [5] | (172) | (285) | (715) | (861) | ||||
Loss on extinguishment of debt | [5] | 0 | 0 | ||||||
Income (loss) before income taxes | [5] | 0 | 0 | 0 | |||||
Equity in net income (loss) of subsidiaries | [5] | 12,453 | (5,264) | (2,319) | (71,557) | ||||
Income (loss) before income taxes | [5] | 12,453 | (5,264) | (2,319) | (71,557) | ||||
Income tax expense (benefit) | [5] | 0 | 0 | 0 | 0 | ||||
Net income (loss) | [5] | $ 12,453 | $ (5,264) | $ (2,319) | $ (71,557) | ||||
[1] | Includes activity for Global Indemnity Limited from July 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 | ||||||||
[2] | Includes activity for Global Indemnity Limited from January 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 | ||||||||
[3] | Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations | ||||||||
[4] | Includes all other subsidiaries of Global Indemnity Limited and eliminations | ||||||||
[5] | Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments |
Schedule of Condensed Consoli_3
Schedule of Condensed Consolidating Statements of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Net income (loss) | $ (15,170) | $ 6,721 | $ (22,197) | $ 40,984 | |||||
Other comprehensive income (loss), net of tax: | |||||||||
Unrealized holding gains (losses) | (448) | 9,421 | 30,748 | 48,883 | |||||
Equity in other comprehensive income of unconsolidated subsidiaries | 0 | 0 | 0 | 0 | |||||
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | 0 | (2) | 0 | (4) | |||||
Reclassification adjustment for (gains) losses included in net income | (2,104) | (847) | (13,205) | (2,665) | |||||
Unrealized foreign currency translation gain (loss) | 579 | 200 | 568 | 331 | |||||
Other comprehensive income (loss), net of tax | (1,973) | 8,772 | 18,111 | 46,545 | |||||
Comprehensive income (loss), net of tax | (17,143) | 15,493 | (4,086) | 87,529 | |||||
Global Indemnity Group, LLC (Parent co-obligor) | Reportable Legal Entities | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Net income (loss) | (15,170) | [1] | 6,721 | (22,197) | [2] | 40,984 | |||
Other comprehensive income (loss), net of tax: | |||||||||
Unrealized holding gains (losses) | (1,310) | [1] | 0 | 322 | [2] | 880 | |||
Equity in other comprehensive income of unconsolidated subsidiaries | (561) | [1] | 8,772 | 17,891 | [2] | 46,226 | |||
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | 0 | 0 | |||||||
Reclassification adjustment for (gains) losses included in net income | (102) | [1] | 0 | (102) | [2] | (561) | |||
Unrealized foreign currency translation gain (loss) | 0 | [1] | 0 | 0 | [2] | 0 | |||
Other comprehensive income (loss), net of tax | (1,973) | [1] | 8,772 | 18,111 | [2] | 46,545 | |||
Comprehensive income (loss), net of tax | (17,143) | [1] | 15,493 | (4,086) | [2] | 87,529 | |||
GBLI Holdings, LLC (Subsidiary co-obligor) | Reportable Legal Entities | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Net income (loss) | (5,784) | (4,462) | (25,649) | 10,903 | |||||
Other comprehensive income (loss), net of tax: | |||||||||
Unrealized holding gains (losses) | (1,049) | 0 | (257) | 1,567 | |||||
Equity in other comprehensive income of unconsolidated subsidiaries | 1,596 | 4,711 | 8,643 | 24,201 | |||||
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | 0 | 0 | |||||||
Reclassification adjustment for (gains) losses included in net income | 56 | (8) | 19 | 235 | |||||
Unrealized foreign currency translation gain (loss) | 0 | 0 | 0 | 0 | |||||
Other comprehensive income (loss), net of tax | 603 | 4,703 | 8,405 | 26,003 | |||||
Comprehensive income (loss), net of tax | (5,181) | 241 | (17,244) | 36,906 | |||||
Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Net income (loss) | (6,669) | [3] | 9,726 | [4] | 27,968 | [3] | 60,654 | [3] | |
Other comprehensive income (loss), net of tax: | |||||||||
Unrealized holding gains (losses) | 1,911 | [3] | 9,421 | [4] | 30,683 | [3] | 46,436 | [3] | |
Equity in other comprehensive income of unconsolidated subsidiaries | 603 | [3] | 4,703 | [4] | 8,405 | [3] | 26,003 | [3] | |
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | (2) | [4] | (4) | [3] | |||||
Reclassification adjustment for (gains) losses included in net income | (2,058) | [3] | (839) | [4] | (13,122) | [3] | (2,339) | [3] | |
Unrealized foreign currency translation gain (loss) | 579 | [3] | 200 | [4] | 568 | [3] | 331 | [3] | |
Other comprehensive income (loss), net of tax | 1,035 | [3] | 13,483 | [4] | 26,534 | [3] | 70,427 | [3] | |
Comprehensive income (loss), net of tax | (5,634) | [3] | 23,209 | [4] | 54,502 | [3] | 131,081 | [3] | |
Consolidation Adjustments | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Net income (loss) | [5] | 12,453 | (5,264) | (2,319) | (71,557) | ||||
Other comprehensive income (loss), net of tax: | |||||||||
Unrealized holding gains (losses) | [5] | 0 | 0 | 0 | 0 | ||||
Equity in other comprehensive income of unconsolidated subsidiaries | [5] | (1,638) | (18,186) | (34,939) | (96,430) | ||||
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss) | [5] | 0 | 0 | ||||||
Reclassification adjustment for (gains) losses included in net income | [5] | 0 | 0 | 0 | 0 | ||||
Unrealized foreign currency translation gain (loss) | [5] | 0 | 0 | 0 | 0 | ||||
Other comprehensive income (loss), net of tax | [5] | (1,638) | (18,186) | (34,939) | (96,430) | ||||
Comprehensive income (loss), net of tax | [5] | $ 10,815 | $ (23,450) | $ (37,258) | $ (167,987) | ||||
[1] | Includes activity for Global Indemnity Limited from July 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 | ||||||||
[2] | Includes activity for Global Indemnity Limited from January 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 | ||||||||
[3] | Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations | ||||||||
[4] | Includes all other subsidiaries of Global Indemnity Limited and eliminations | ||||||||
[5] | 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 | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | ||||
Cash flows from operating activities: | |||||
Net cash provided by (used for) operating activities | $ 33,936 | $ 45,930 | |||
Cash flows from investing activities: | |||||
Proceeds from sale of fixed maturities | 600,962 | 642,049 | |||
Proceeds from sale of equity securities | 563,926 | 206,212 | |||
Proceeds from maturity of fixed maturities | 89,875 | 113,480 | |||
Proceeds from other invested assets | 1,823 | 14,201 | |||
Amounts paid in connection with derivatives | (20,130) | (12,516) | |||
Purchases of fixed maturities | (702,727) | (701,684) | |||
Purchases of equity securities | (393,963) | (325,972) | |||
Purchases of other invested assets | (297) | (3,500) | |||
Net cash provided by (used for) investing activities | 139,469 | (67,730) | |||
Cash flows from financing activities: | |||||
Net borrowings (repayments) under margin borrowing facility | (73,629) | 8,561 | |||
Proceeds (repayment) of note to affiliates | 0 | ||||
Dividends paid to shareholders | (10,683) | (7,130) | |||
Issuance of series A cumulative fixed rate preferred shares | 4,000 | 0 | |||
Dividends from subsidiaries | 0 | ||||
Capital contribution | 0 | ||||
Purchases of class A common shares | (153) | (947) | |||
Redemption of subordinated notes | (100,000) | 0 | |||
Net cash provided by (used for) financing activities | (180,465) | 484 | |||
Net change in cash and cash equivalents | (7,060) | (21,316) | |||
Cash and cash equivalents at beginning of period | 44,271 | 99,497 | |||
Cash and cash equivalents at end of period | 37,211 | 78,181 | |||
Global Indemnity Group, LLC (Parent co-obligor) | Reportable Legal Entities | |||||
Cash flows from operating activities: | |||||
Net cash provided by (used for) operating activities | (10,423) | [1] | 1,718 | ||
Cash flows from investing activities: | |||||
Proceeds from sale of fixed maturities | 18,451 | [1] | 48,393 | ||
Proceeds from sale of equity securities | 103,002 | [1] | 7,300 | ||
Proceeds from maturity of fixed maturities | 280 | [1] | 0 | ||
Proceeds from other invested assets | 1,700 | [1] | 3,161 | ||
Amounts paid in connection with derivatives | 0 | [1] | 0 | ||
Purchases of fixed maturities | (185,692) | [1] | (10,548) | ||
Purchases of equity securities | (107,228) | [1] | (40,564) | ||
Purchases of other invested assets | 0 | [1] | 0 | ||
Net cash provided by (used for) investing activities | (169,487) | [1] | 7,742 | ||
Cash flows from financing activities: | |||||
Net borrowings (repayments) under margin borrowing facility | 0 | [1] | 0 | ||
Proceeds (repayment) of note to affiliates | [1] | 0 | |||
Dividends paid to shareholders | (10,683) | [1] | (7,130) | ||
Issuance of series A cumulative fixed rate preferred shares | [1] | 4,000 | |||
Dividends from subsidiaries | [1] | 226,000 | |||
Capital contribution | [1] | (26,466) | |||
Purchases of class A common shares | (153) | [1] | (947) | ||
Redemption of subordinated notes | [1] | 0 | |||
Net cash provided by (used for) financing activities | 192,698 | [1] | (8,077) | ||
Net change in cash and cash equivalents | 12,788 | [1] | 1,383 | ||
Cash and cash equivalents at beginning of period | 977 | [1] | 2,221 | ||
Cash and cash equivalents at end of period | 13,765 | [1] | 3,604 | ||
GBLI Holdings, LLC (Subsidiary co-obligor) | Reportable Legal Entities | |||||
Cash flows from operating activities: | |||||
Net cash provided by (used for) operating activities | 1,526 | 2,593 | |||
Cash flows from investing activities: | |||||
Proceeds from sale of fixed maturities | 36,898 | 101,525 | |||
Proceeds from sale of equity securities | 460,924 | 198,912 | |||
Proceeds from maturity of fixed maturities | 0 | 0 | |||
Proceeds from other invested assets | 123 | 11,040 | |||
Amounts paid in connection with derivatives | (20,130) | (12,516) | |||
Purchases of fixed maturities | (50,283) | (24,280) | |||
Purchases of equity securities | (286,735) | (285,408) | |||
Purchases of other invested assets | (297) | (3,500) | |||
Net cash provided by (used for) investing activities | 140,500 | (14,227) | |||
Cash flows from financing activities: | |||||
Net borrowings (repayments) under margin borrowing facility | (73,629) | 8,561 | |||
Proceeds (repayment) of note to affiliates | 5,049 | ||||
Dividends paid to shareholders | 0 | 0 | |||
Capital contribution | 26,466 | ||||
Purchases of class A common shares | 0 | 0 | |||
Redemption of subordinated notes | (100,000) | ||||
Net cash provided by (used for) financing activities | (142,114) | 8,561 | |||
Net change in cash and cash equivalents | (88) | (3,073) | |||
Cash and cash equivalents at beginning of period | 2,663 | 26,039 | |||
Cash and cash equivalents at end of period | 2,575 | 22,966 | |||
Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) | |||||
Cash flows from operating activities: | |||||
Net cash provided by (used for) operating activities | 42,833 | [2] | 41,619 | [3] | |
Cash flows from investing activities: | |||||
Proceeds from sale of fixed maturities | 545,613 | [2] | 492,131 | [3] | |
Proceeds from sale of equity securities | 0 | [2] | 0 | [3] | |
Proceeds from maturity of fixed maturities | 89,595 | [2] | 113,480 | [3] | |
Proceeds from other invested assets | 0 | [2] | 0 | [3] | |
Amounts paid in connection with derivatives | 0 | [2] | 0 | [3] | |
Purchases of fixed maturities | (466,752) | [2] | (666,856) | [3] | |
Purchases of equity securities | 0 | [2] | 0 | [3] | |
Purchases of other invested assets | 0 | [2] | 0 | [3] | |
Net cash provided by (used for) investing activities | 168,456 | [2] | (61,245) | [3] | |
Cash flows from financing activities: | |||||
Net borrowings (repayments) under margin borrowing facility | 0 | [2] | 0 | [3] | |
Proceeds (repayment) of note to affiliates | [2] | (5,049) | |||
Dividends paid to shareholders | 0 | [2] | 0 | [3] | |
Issuance of series A cumulative fixed rate preferred shares | [2] | 0 | |||
Dividends from subsidiaries | [2] | (226,000) | |||
Capital contribution | [2] | 0 | |||
Purchases of class A common shares | 0 | [2] | 0 | [3] | |
Redemption of subordinated notes | [2] | 0 | |||
Net cash provided by (used for) financing activities | (231,049) | [2] | 0 | [3] | |
Net change in cash and cash equivalents | (19,760) | [2] | (19,626) | [3] | |
Cash and cash equivalents at beginning of period | [3] | 40,631 | [2] | 71,237 | |
Cash and cash equivalents at end of period | $ 20,871 | [2] | $ 51,611 | [3] | |
[1] | Includes activity for Global Indemnity Limited from January 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020 | ||||
[2] | Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations | ||||
[3] | Includes all other subsidiaries of Global Indemnity Limited and eliminations |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - Topic 820 | Sep. 30, 2020 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true |