Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 26, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Annual 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 Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Interactive Data Current | Yes | ||
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 | ||
Entity Public Float | $ 207,120,190 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement relating to the 2021 Annual Meeting of Shareholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2020 are incorporated by reference into Part III of this report. | ||
Class A Common Shares | |||
Document Information [Line Items] | |||
Entity Ordinary Shares, Shares Outstanding | 10,269,882 | ||
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 | ||
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Fixed maturities: | ||
Available for sale, at fair value (amortized cost: $1,149,009 and $1,231,568; net of allowance for expected credit losses of: 2020 - $0) | $ 1,191,186 | $ 1,253,159 |
Equity securities, at fair value | 98,990 | 263,104 |
Other invested assets | 97,018 | 47,279 |
Total investments | 1,387,194 | 1,563,542 |
Cash and cash equivalents | 67,359 | 44,271 |
Premiums receivable, net of allowance for expected credit losses of $2,900 at December 31, 2020 | 109,431 | 118,035 |
Reinsurance receivables, net of allowance for expected credit losses of $8,992 at December 31, 2020 | 88,708 | 83,938 |
Funds held by ceding insurers | 45,480 | 48,580 |
Federal income taxes receivable | 0 | 10,989 |
Deferred federal income taxes | 34,265 | 31,077 |
Deferred acquisition costs | 65,195 | 70,677 |
Intangible assets | 20,962 | 21,491 |
Goodwill | 6,521 | 6,521 |
Prepaid reinsurance premiums | 12,881 | 16,716 |
Other assets | 66,912 | 60,048 |
Total assets | 1,904,908 | 2,075,885 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 662,811 | 630,181 |
Unearned premiums | 291,495 | 314,861 |
Ceded balances payable | 8,943 | 20,404 |
Payable for securities purchased | 4,667 | 850 |
Contingent commissions | 10,832 | 11,928 |
Debt | 126,288 | 296,640 |
Other liabilities | 81,548 | 74,212 |
Total liabilities | 1,186,584 | 1,349,076 |
Commitments and contingencies (Note 16) | ||
Shareholders’ equity: | ||
Common shares, par value: no par at December 31, 2020 and $0.0001 at December 31, 2019, 900,000,000 common shares authorized; class A common shares issued: 10,263,722 and 10,282,277 respectively; class A common shares outstanding: 10,263,722 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 | 445,051 | 442,403 |
Accumulated other comprehensive income, net of taxes | 34,308 | 17,609 |
Retained earnings | 234,965 | 270,768 |
Total shareholders’ equity | 718,324 | 726,809 |
Total liabilities and shareholders’ equity | 1,904,908 | 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 | 0 |
Total shareholders’ equity | 4,000 | 0 |
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Available for sale, amortized cost | $ 1,149,009 | $ 1,231,568 |
Available-for-sale, net of allowance for expected credit losses | 0 | |
Premiums receivable, allowance for expected credit loss | 2,900 | 2,754 |
Reinsurance receivable, allowance for expected 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 | 10,263,722 | 10,282,277 |
Common shares, shares outstanding | 10,263,722 | 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 | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenues: | ||||
Gross written premiums | $ 606,603 | $ 636,861 | $ 547,897 | |
Net written premiums | 548,167 | 562,089 | 472,547 | |
Net earned premiums | 567,699 | 525,262 | 467,775 | |
Net investment income | 28,392 | 42,052 | 46,342 | |
Net realized investment gains (losses) | ||||
Other income | 2,118 | 1,816 | 1,728 | |
Total revenues | 583,547 | 604,472 | 498,938 | |
Losses and Expenses: | ||||
Net losses and loss adjustment expenses | 336,201 | 275,402 | 334,625 | |
Acquisition costs and other underwriting expenses | 215,607 | 208,403 | 190,778 | |
Corporate and other operating expenses | 41,998 | 18,888 | 29,766 | |
Interest expense | 15,792 | 20,022 | 19,694 | |
Loss on extinguishment of debt | 3,060 | 0 | 0 | |
Income (loss) before income taxes | (29,111) | 81,757 | (75,925) | |
Income tax expense (benefit) | (8,105) | 11,742 | (19,229) | |
Net income (loss) | (21,006) | 70,015 | (56,696) | |
Less: preferred stock distributions | 152 | 0 | 0 | |
Net income (loss) available to common shareholders | $ (21,158) | $ 70,015 | $ (56,696) | |
Net income (loss) available to common shareholders | ||||
Basic | [1] | $ (1.48) | $ 4.93 | $ (4.02) |
Diluted | [1] | $ (1.48) | $ 4.88 | $ (4.02) |
Weighted-average number of shares outstanding | ||||
Basic | 14,291,265 | 14,191,756 | 14,088,883 | |
Diluted | [2] | 14,291,265 | 14,334,706 | 14,088,883 |
Cash dividends/distributions declared per common share | $ 1 | $ 1 | $ 1 | |
[1] | For the years ended December 31, 2020 and 2018, “weighted average shares outstanding - basic” was used to calculate “diluted earnings per share” due to a net loss for the period. | |||
[2] | For the years ended December 31, 2020 and 2018, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss for these periods. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ (21,006) | $ 70,015 | $ (56,696) |
Other comprehensive income (loss), net of tax: | |||
Unrealized holding gains (losses) | 33,334 | 43,980 | (20,748) |
Portion of other than temporary impairment losses recognized in other comprehensive income (loss) | 0 | (5) | (3) |
Reclassification adjustment for gains included in net income (loss) | (17,794) | (5,437) | 2,450 |
Unrealized foreign currency translation gains (losses) | 1,159 | 302 | (1,885) |
Other comprehensive income (loss), net of tax | 16,699 | 38,840 | (20,186) |
Comprehensive income (loss), net of tax | $ (4,307) | $ 108,855 | $ (76,882) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital | Accumulated other comprehensive income (loss), net of deferred income tax | Retained Earnings | Treasury Shares | Series A Cumulative Fixed Rate Preferred Shares | Class A Common Shares | Class A Common SharesTreasury Shares | Class B Common Shares |
Number at Dec. 31, 2017 | 29,551 | 10,102,927 | 4,133,366 | ||||||
Class A common shares purchased | 45,233 | ||||||||
Retirement of treasury shares | 1,858 | ||||||||
Preferred shares issued | 0 | ||||||||
Common shares issued / (forfeited) under share incentive plans | 37,381 | ||||||||
Common shares issued to directors | 31,646 | ||||||||
Reduction in treasury shares due to redomestication | 0 | 0 | |||||||
Number at Dec. 31, 2018 | 76,642 | 0 | 10,171,954 | 4,133,366 | |||||
Balance at Dec. 31, 2017 | $ 434,730 | $ 8,983 | $ 275,838 | $ (1,159) | $ 1 | $ 1 | |||
Class A common shares purchased, at cost | $ (1,813) | ||||||||
Reduction in par due to redomestication | 0 | 0 | 0 | ||||||
Reduction in treasury shares due to redomestication | 0 | ||||||||
Retirement of shares | (54) | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||
Change in unrealized holding gains (losses) | (18,298) | ||||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | $ (3) | (3) | |||||||
Unrealized foreign currency translation gains (losses) | (1,885) | (1,885) | |||||||
Other comprehensive income (loss), net of tax | (20,186) | (20,186) | |||||||
Cumulative effect adjustment resulting from adoption of new accounting guidance | (10,028) | 10,198 | |||||||
Net income (loss) | (56,696) | (56,696) | |||||||
Preferred share distributions | 0 | 0 | |||||||
Dividends/ Distribution to shareholders | (14,208) | ||||||||
Share compensation plans | 3,452 | ||||||||
Preferred shares issued | $ 0 | ||||||||
Balance at Dec. 31, 2018 | 629,059 | 438,182 | (21,231) | 215,132 | $ (3,026) | $ 0 | $ 1 | $ 1 | |
Class A common shares purchased | 27,028 | ||||||||
Retirement of treasury shares | 11,551 | ||||||||
Preferred shares issued | 0 | ||||||||
Common shares issued / (forfeited) under share incentive plans | 43,404 | ||||||||
Common shares issued to directors | 66,919 | ||||||||
Reduction in treasury shares due to redomestication | 0 | 0 | |||||||
Number at Dec. 31, 2019 | 115,221 | 0 | 10,282,277 | 4,133,366 | |||||
Class A common shares purchased, at cost | $ (947) | ||||||||
Reduction in par due to redomestication | 0 | $ 0 | $ 0 | ||||||
Reduction in treasury shares due to redomestication | $ 0 | ||||||||
Retirement of shares | 0 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||
Change in unrealized holding gains (losses) | 38,543 | ||||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | (5) | (5) | |||||||
Unrealized foreign currency translation gains (losses) | 302 | 302 | |||||||
Other comprehensive income (loss), net of tax | 38,840 | 38,840 | |||||||
Cumulative effect adjustment resulting from adoption of new accounting guidance | 0 | (5) | |||||||
Net income (loss) | 70,015 | 70,015 | |||||||
Preferred share distributions | 0 | 0 | |||||||
Dividends/ Distribution to shareholders | (14,374) | ||||||||
Share compensation plans | 4,221 | ||||||||
Preferred shares issued | $ 0 | ||||||||
Balance at Dec. 31, 2019 | 726,809 | 442,403 | 17,609 | 270,768 | $ (3,973) | $ 0 | $ 1 | $ 1 | |
Class A common shares purchased | 5,120 | ||||||||
Retirement of treasury shares | 159 | ||||||||
Preferred shares issued | 4,000 | ||||||||
Common shares issued / (forfeited) under share incentive plans | (6,576) | ||||||||
Common shares issued to directors | 108,521 | ||||||||
Reduction in treasury shares due to redomestication | (120,500) | (120,500) | |||||||
Number at Dec. 31, 2020 | 0 | 4,000 | 10,263,722 | 0 | |||||
Class A common shares purchased, at cost | $ (153) | ||||||||
Reduction in par due to redomestication | (4,126) | $ (1) | $ (1) | ||||||
Reduction in treasury shares due to redomestication | 4,100 | $ 4,126 | |||||||
Retirement of shares | 0 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||
Change in unrealized holding gains (losses) | 15,540 | ||||||||
Change in other than temporary impairment losses recognized in other comprehensive income (loss) | 0 | 0 | |||||||
Unrealized foreign currency translation gains (losses) | 1,159 | 1,159 | |||||||
Other comprehensive income (loss), net of tax | 16,699 | 16,699 | |||||||
Cumulative effect adjustment resulting from adoption of new accounting guidance | 0 | 0 | |||||||
Net income (loss) | (21,006) | (21,006) | |||||||
Preferred share distributions | (152) | (152) | |||||||
Dividends/ Distribution to shareholders | (14,645) | ||||||||
Share compensation plans | 6,774 | ||||||||
Preferred shares issued | $ 4,000 | ||||||||
Balance at Dec. 31, 2020 | $ 718,324 | $ 445,051 | $ 34,308 | $ 234,965 | $ 0 | $ 4,000 | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (21,006) | $ 70,015 | $ (56,696) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Amortization and depreciation | 7,027 | 7,103 | 7,019 |
Amortization of debt issuance costs | 217 | 264 | 264 |
Restricted stock and stock option expense | 6,774 | 4,221 | 3,452 |
Deferred federal income taxes | (8,268) | 11,783 | (19,554) |
Amortization of bond premium and discount, net | 6,957 | 4,887 | 5,925 |
Net realized investment (gains) losses | 14,662 | (35,342) | 16,907 |
Loss on extinguishment of debt | 3,060 | 0 | 0 |
Loss from equity method investments, net of distributions | 6,346 | 0 | 0 |
Changes in: | |||
Premiums receivable, net | 8,604 | (30,356) | (3,293) |
Reinsurance receivables, net | (4,770) | 30,480 | (9,358) |
Funds held by ceding insurers | 4,294 | 928 | (5,791) |
Unpaid losses and loss adjustment expenses | 32,630 | (49,850) | 45,367 |
Unearned premiums | (23,366) | 32,949 | (3,485) |
Ceded balances payable | (11,461) | 5,410 | 4,143 |
Other assets and liabilities | (8,240) | (16,162) | 46,823 |
Contingent commissions | (1,096) | 1,292 | 2,652 |
Federal income tax receivable/payable | 10,989 | (123) | (534) |
Deferred acquisition costs | 5,482 | (9,001) | (29) |
Prepaid reinsurance premiums | 3,835 | 3,878 | 8,257 |
Net cash provided by operating activities | 32,670 | 32,376 | 42,069 |
Cash flows from investing activities: | |||
Proceeds from sale of fixed maturities | 791,554 | 977,321 | 293,348 |
Proceeds from sale of equity securities | 604,772 | 260,891 | 35,639 |
Proceeds from maturity of fixed maturities | 119,326 | 180,546 | 55,182 |
Proceeds from other invested assets | 4,211 | 16,757 | 43,377 |
Amounts received (paid) in connection with derivatives | (20,456) | (7,654) | 4,392 |
Purchases of fixed maturities | (808,618) | (1,129,567) | (370,536) |
Purchases of equity securities | (455,907) | (365,255) | (36,258) |
Purchases of other invested assets | (60,297) | (13,283) | (16,309) |
Acquisition of business | 0 | 0 | (3,515) |
Net cash provided by (used for) investing activities | 174,585 | (80,244) | 5,320 |
Cash flows from financing activities: | |||
Net borrowings (repayments) under margin borrowing facility | (73,629) | 7,811 | (6,412) |
Dividends paid to common shareholders | (14,252) | (14,222) | (14,027) |
Distributions paid to preferred shareholders | (133) | 0 | 0 |
Issuance of series A cumulative fixed rate preferred shares | 4,000 | 0 | 0 |
Purchases of class A common shares | 153 | 947 | 1,867 |
Redemption of subordinated notes | 100,000 | 0 | 0 |
Net cash used for financing activities | (184,167) | (7,358) | (22,306) |
Net change in cash and cash equivalents | 23,088 | (55,226) | 25,083 |
Cash and cash equivalents at beginning of period | 44,271 | 99,497 | 74,414 |
Cash and cash equivalents at end of period | $ 67,359 | $ 44,271 | $ 99,497 |
Principles of Consolidation and
Principles of Consolidation and Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principles of Consolidation and Basis of Presentation | 1. Principles of Consolidation and Basis of Presentation Global Indemnity Group, LLC (“Global Indemnity”), 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. This transaction resulted in the redomestication of the Company and its Bermuda subsidiary, Global Indemnity Reinsurance Company, Ltd. (“Global Indemnity Reinsurance”), to the United States. Global Indemnity Group, LLC’s class A common shares are publicly traded on the NASDAQ Global Select Market under the ticker symbol GBLI. Global Indemnity Group, LLC’s predecessors have been publicly traded since 2003. See Note 2 below for additional information regarding the redomestication. During the first quarter of 2019, the Company re-evaluated its Personal Lines segment and determined that Personal Lines should be bifurcated into two reportable segments: Specialty Property and Farm, Ranch & Stable. This is the result of changing how Specialty Property and Farm, Ranch & Stable are managed and reported. Specialty Property is managed out of the Company’s Scottsdale, Arizona office; whereas, Farm, Ranch & Stable is managed out of the Company’s Omaha, Nebraska office. In the past, Farm, Ranch & Stable reported to the Scottsdale, Arizona office and now it reports directly to the Company’s main headquarters in Bala Cynwyd, Pennsylvania. Results for Specialty Property and Farm, Ranch & Stable are separately measured, resources are separately allocated to each of these lines, and employees in each line are now being rewarded based on each line’s separate results. Accordingly, the Company now reports Specialty Property and Farm, Ranch & Stable as two separate reportable segments. In addition, the Company has changed the name of its Commercial Lines segment to Commercial Specialty to better align with its key product offerings. The segment results for the year ended December 31, 2018 have been revised to reflect these changes. See Note 21 for additional information regarding 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 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. 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 Global Indemnity group of companies’ existing U.S. insurance company subsidiaries. The consolidated financial statements have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The consolidated financial statements include the accounts of Global Indemnity and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Redomestication
Redomestication | 12 Months Ended |
Dec. 31, 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 a 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 Global Indemnity Group, LLC As a result, any references to class A common shares or class B common shares after the Effective Time refer to Global Indemnity Group, LLC class A common shares or class B common shares and any references to class A common shares or class B common shares prior to the Effective Time refers to Global Indemnity Limited A ordinary shares or B ordinary shares. T he 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, Global Indemnity Group, LLC 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, Global Indemnity Group, LLC Global Indemnity Group, LLC On August 27, 2020, Global Indemnity Group, LLC Global Indemnity Group, LLC |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3 . Summary of Significant Accounting Policies Investments The Company’s investments in fixed maturities, which are classified as available for sale, and equity securities are carried at their fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of the Company's fixed maturities and equity securities are determined on the basis of quoted market prices where available. If quoted market prices are not available, the Company uses third party pricing services to assist in determining fair value. In many instances, these services examine the pricing of similar instruments to estimate fair value. The Company purchases bonds with the expectation of holding them to their maturity; however, changes to the portfolio are sometimes required to assure it is appropriately matched to liabilities. In addition, changes in financial market conditions and tax considerations may cause the Company to sell an investment before it matures. The difference between amortized cost and fair value of the Company’s fixed maturity portfolio, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders’ equity and, accordingly, has no effect on net income (loss) other than for the credit loss component of impairments and losses recognized as a result of the intent to sell. Equity securities are measured at fair value with the changes in fair value recognized in net income (loss). For investments in limited partnerships and limited liability companies where the ownership interest is less than 3%, the Company carries these investments at fair value, and the change in the difference between cost and the fair value of these interests, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders' equity and, accordingly, has no effect on net income (loss). The Company uses the equity method to account for investments in limited partnerships and limited liability companies where its ownership interest exceeds 3%. The equity method of accounting for an investment in a limited partnership and limited liability company requires that its cost basis be updated to account for the income or loss earned on the investment. The income or loss associated with the limited partnerships and limited liability companies is reflected in the consolidated statements of operations, and the adjusted cost basis approximates fair value. The Company’s investments in other invested assets were valued at $97.0 million and $47.3 million as of December 31, 2020 and 2019, respectively. These amounts relate to investments in limited partnerships and limited liability companies whose carrying value approximates fair value. Net realized gains and losses on investments are determined based on the first-in, first-out method. The Company implemented new accounting guidance on January 1, 2020 related to the measurement of expected credit losses on financial instruments. 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 (loss). Any impairments related to factors other than credit losses and the intent to sell continue to be recorded through other comprehensive income, net of taxes. 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 expected 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 and the intent to sell 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 expected 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 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 expected 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. 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 four VIEs for which it is not the primary beneficiary. These investments are accounted for under the equity method of accounting as their ownership interest exceeds 3% of their respective investments. Cash and Cash Equivalents For the purpose of the statements of cash flows, the Company considers all liquid instruments with an original maturity of three months or less to be cash equivalents. The Company has a cash management program that provides for the investment of excess cash balances primarily in short-term money market instruments. Generally, bank balances exceed federally insured limits. The carrying amount of cash and cash equivalents approximates fair value. At December 31, 2020 and 2019, the Company had approximately $58.0 million and $35.8 million, respectively, of cash and cash equivalents that was invested in a diversified portfolio of high quality short-term debt securities. Valuation of Premium Receivable The Company evaluates the collectability of premium receivable based on a combination of factors. In instances in which the Company is aware of a specific circumstance where a party may be unable to meet its financial obligations to the Company, a specific allowance for expected credit losses against amounts due is recorded to reduce the net receivable to the amount reasonably believed by management to be collectible. For all remaining balances, 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. Goodwill and Intangible Assets The Company tests for impairment of goodwill at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of goodwill for impairment using both qualitative and quantitative factors. Impairment of goodwill is recognized only if the carrying amount of the reporting unit, including goodwill, exceeds the fair value of the reporting unit. The amount of the impairment loss would be equal to the excess carrying value of the goodwill over the implied fair value of the reporting unit goodwill. Based on the qualitative assessment performed, t of as of December 31, 2020. Impairment of intangible assets with an indefinite at least annually and more frequently as circumstances warrant here were no impairments Intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated useful lives. The carrying amounts of definite lived intangible assets are regularly reviewed for indicators of impairment in accordance with applicable accounting guidance. Impairment is recognized only if the carrying amount of the intangible asset is in excess of its undiscounted projected cash flows. The impairment is measured as the difference between the carrying amount and the estimated fair value of the asset. As of December 31, 2020, there were no triggering events that occurred during the year that would result in an impairment of definite lived intangible assets. See Note 7 for additional information on goodwill and intangible assets. Reinsurance In the normal course of business, the Company seeks to reduce the loss that may arise from events that cause unfavorable underwriting results by reinsuring certain levels of risk from various areas of exposure with reinsurers. Amounts receivable from reinsurers are estimated in a manner consistent with the reinsured policy and the reinsurance contract. The Company regularly reviews the collectability of reinsurance receivables. An allowance for uncollectible reinsurance receivable is recognized based 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 AM Best Ratings and other relevant factors. Any changes in the allowance resulting from this review are included in net losses and loss adjustment expenses on the consolidated statements of operations during the period in which the determination is made. The allowance for expected credit losses w as $9.0 million as of December 31, 2020 and 2019 . The applicable accounting guidance requires that the reinsurer must assume significant insurance risk under the reinsured portions of the underlying insurance contracts and that there must be a reasonably possible chance that the reinsurer may realize a significant loss from the transaction. The Company has evaluated its reinsurance contracts and concluded that each contract qualifies for reinsurance accounting treatment pursuant to this guidance. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. The deferred tax asset balance is analyzed regularly by management. This assessment requires significant judgment and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of carryforward periods, and tax planning strategies and/or actions. Management believes that it is more likely than not that the results of future operations can generate sufficient taxable income to realize the remaining deferred income tax assets, and accordingly, the Company has not established any valuation allowances. Deferred Acquisition Costs The costs of acquiring new and renewal insurance and reinsurance contracts include commissions, premium taxes and certain other costs that are directly related to the successful acquisition of new and renewal insurance and reinsurance contracts. The excess of the Company’s costs of acquiring new and renewal insurance and reinsurance contracts over the related ceding commissions earned from reinsurers is capitalized as deferred acquisition costs and amortized over the period in which the related premiums are earned. The amortization of deferred acquisition costs for the years ended December 31, 2020, 2019, and 2018 was $140.9 million, $132.3 million, and $118.0 million, respectively. Premium Deficiency A premium deficiency is recognized if the sum of expected loss and loss adjustment expenses and unamortized acquisition costs exceeds related unearned premium after consideration of investment income. This evaluation is done at a distribution and product line level in Insurance Operations and at a treaty level in Reinsurance Operations. Any future expected loss on the related unearned premium is recorded first by impairing the unamortized acquisition costs on the related unearned premium followed by an increase to loss and loss adjustment expense reserves on additional expected loss in excess of unamortized acquisition costs. No premium deficiency reserve existed as of December 31, 2020 or 2019. Derivative Instruments The Company uses derivative instruments to manage its exposure to cash flow variability from interest rate risk and limit exposure to severe equity market changes. The derivative instruments are carried on the balance sheet at fair value and included in other assets and other liabilities. Changes in the fair value of the derivative instruments and the periodic net interest settlements under the derivatives instruments are recognized as net realized investment gains (losses) on the consolidated statements of operations. Margin Borrowing Facility The carrying amounts reported in the balance sheet represent the outstanding borrowings. The outstanding borrowings are due on demand; therefore, the cash receipts and cash payments related to the margin borrowing facility are shown net in the consolidated statements of cash flows. Subordinated Notes The carrying amounts reported in the balance sheet represent the outstanding balances, net of deferred issuance cost. See Note 12 for details. Unpaid Losses and Loss Adjustment Expenses The liability for unpaid losses and loss adjustment expenses represents the Company’s best estimate of future amounts needed to pay losses and related settlement expenses with respect to events insured by the Company. This liability is based upon the accumulation of individual case estimates for losses reported prior to the close of the accounting period with respect to direct business, estimates received from ceding companies with respect to assumed reinsurance, and estimates of unreported losses. The process of establishing the liability for unpaid losses and loss adjustment is complex, requiring the use of informed actuarially based estimates and management’s judgment. In some cases, significant periods of time, up to several years or more, may elapse between the occurrence of an insured loss and the reporting of that loss to the Company. To establish this liability, the Company regularly reviews and updates the methods of making such estimates and establishing the resulting liabilities. Any resulting adjustments are recorded in consolidated statements of operations during the period in which the determination is made. Retirement of Treasury Stock Upon the formal retirement of treasury stock, Global Indemnity Group, LLC Share Redemptions When shares are redeemed, Global Indemnity Group, LLC offsets the par value of the redeemed shares against common shares and reflects any excess of cost over par value as a deduction from Retained Earnings. Premiums Premiums are recognized as revenue ratably over the term of the respective policies and treaties. Unearned premiums are computed on a pro rata basis to the day of expiration. Mandatory reinstatement premiums assessed on reinsurance policies are earned in the period of the loss event that gave rise to the reinstatement premiums. Contingent Commissions Certain professional general agencies of the Insurance Operations are paid special incentives, referred to as contingent commissions, when results of business produced by these agencies are more favorable than predetermined thresholds. Similarly, in some circumstances, companies that cede business to the Reinsurance Operations are paid profit commissions based on the profitability of the ceded portfolio. These commissions are charged to other underwriting expenses when incurred. Share-Based Compensation The Company accounts for stock options and other equity based compensation using the modified prospective application of the fair value-based method permitted by the appropriate accounting guidance. See Note 17 for details. Earnings per Share Basic earnings per share have been calculated by dividing net income (loss) available to common shareholders by the weighted-average common shares outstanding. In periods of net income, diluted earnings per share have been calculated by dividing net income available to common shareholders by the sum of the weighted-average common shares outstanding and the weighted-average common share equivalents outstanding, which include options and other equity awards. In periods of net loss, diluted earnings per share is the same as basic earnings per share. See Note 19 for details. Foreign Currency At times, the Company maintains investments and cash accounts in foreign currencies related to the operations of its business. At period-end, the Company re-measures non-U.S. currency financial assets to their current U.S. dollar equivalent. The resulting gain or loss for foreign denominated fixed maturity investments, if any, is reflected in accumulated other comprehensive income in shareholders’ equity; whereas, the gain or loss on foreign denominated cash accounts and equity securities is reflected in income during the period. Financial liabilities, if any, are generally adjusted within the reserving process. However, for known losses on claims to be paid in foreign currencies, the Company re-measures the liabilities to their current U.S. dollar equivalent each period end with the resulting gain or loss reflected in income during the period. Net transaction gains and losses, primarily comprised of re-measurement of known losses on claims to be paid in foreign currencies, were a gain Leases The Company determines if an arrangement is a lease at inception. Leases with a term of 12 months or less are not recorded on the consolidated balance sheets. Lease right-of-use assets (“ROU”) are included in other assets on the consolidated balance sheets and lease liabilities are included in other liabilities on the consolidated balance sheets. Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company’s leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate at the commencement date in determining the present value of future payments. The ROU asset is calculated using the initial lease liability amount, plus any lease payments made at or before the commencement date, minus any lease incentives received, plus any initial direct costs incurred. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. The Company’s lease agreements may contain both lease and non-lease components which are accounted separately. The Company elected the practical expedient on not separating lease components from non-lease components for its equipment leases. Other Income Other income is primarily comprised of fee income and foreign exchange gains and losses. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 4 . Investments The Company implemented new accounting guidance on January 1, 2020 related to the measurement of expected 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 (loss). Any impairments related to factors other than credit losses or the intent to sell 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 expected 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 $5.7 million and $7.0 million as of December 31, 2020 and 2019, respectively. The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of December 31, 2020 and 2019: (Dollars in thousands) Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of December 31, 2020 Fixed maturities: U.S. treasury and agency obligations $ 195,444 $ — $ 3,125 $ (1,089 ) $ 197,480 Obligations of states and political subdivisions 58,140 — 3,170 (67 ) 61,243 Mortgage-backed securities 351,453 — 7,876 (551 ) 358,778 Asset-backed securities 116,349 — 1,890 (646 ) 117,593 Commercial mortgage-backed securities 105,509 — 6,094 (644 ) 110,959 Corporate bonds 223,387 — 17,703 (373 ) 240,717 Foreign corporate bonds 98,727 — 5,716 (27 ) 104,416 Total fixed maturities $ 1,149,009 $ — $ 45,574 $ (3,397 ) $ 1,191,186 (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 December 31, 2020 and 2019, the Company’s investments in equity securities consist of the following: December 31, (Dollars in thousands) 2020 2019 Common stock $ 60,379 $ 135,329 Preferred stock 11,683 11,656 Index funds that invest in fixed maturities 26,928 54,648 Index funds that invest in common stock — 61,471 Total $ 98,990 $ 263,104 As of December 31, 2020 and 2019, the Company held Fannie Mae mortgage pools that totaled as much as 3.9% and 4.2% of shareholders’ equity, respectively. Excluding the Fannie Mae pools, U.S. treasuries, agency bonds, index funds, and limited liability companies 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 December 31, 2020 and 2019, respectively. The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at December 31, 2020, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Estimated Fair Value Due in one year or less $ 45,055 $ 45,346 Due in one year through five years 204,299 214,737 Due in five years through ten years 238,966 250,462 Due in ten years through fifteen years 23,682 25,349 Due after fifteen years 63,696 67,962 Mortgage-backed securities 351,453 358,778 Asset-backed securities 116,349 117,593 Commercial mortgage-backed securities 105,509 110,959 Total $ 1,149,009 $ 1,191,186 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 December 31, 2020. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 6. Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasury and agency obligations $ 81,999 $ (1,089 ) $ — $ — $ 81,999 $ (1,089 ) Obligations of states and political subdivisions 2,588 (67 ) — — 2,588 (67 ) Mortgage-backed securities 57,350 (551 ) 4 — 57,354 (551 ) Asset-backed securities 22,268 (389 ) 13,354 (257 ) 35,622 (646 ) Commercial mortgage-backed securities 10,294 (526 ) 1,154 (118 ) 11,448 (644 ) Corporate bonds 7,783 (373 ) — — 7,783 (373 ) Foreign corporate bonds 885 (27 ) — — 885 (27 ) Total fixed maturities $ 183,167 $ (3,022 ) $ 14,512 $ (375 ) $ 197,679 $ (3,397 ) 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 6. Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasury and agency obligations $ 35,633 $ (797 ) $ — $ — $ 35,633 $ (797 ) Obligations of states and political subdivisions 27,180 (271 ) — — 27,180 (271 ) Mortgage-backed securities 93,579 (244 ) 902 (7 ) 94,481 (251 ) Asset-backed securities 43,402 (167 ) 16,152 (253 ) 59,554 (420 ) Commercial mortgage-backed securities 25,698 (196 ) 1,945 (13 ) 27,643 (209 ) Corporate bonds 19,407 (79 ) — — 19,407 (79 ) Foreign corporate bonds 4,822 (20 ) 2,035 (3 ) 6,857 (23 ) Total fixed maturities $ 249,721 $ (1,774 ) $ 21,034 $ (276 ) $ 270,755 $ (2,050 ) Subject to the risks and uncertainties in evaluating the potential impairment of a security’s value, the impairment evaluation conducted by the Company as of December 31, 2020 concluded the unrealized losses discussed above are non-credit losses on 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 impairment evaluation process is discussed in the “Investment” section of Note 3 (“Summary of Significant Accounting Policies”). The following is a description, by asset type, of the methodology and significant inputs that the Company used to measure the amount of credit loss recognized in earnings, if any: U.S. treasury and agency obligations – As of December 31, 2020, gross unrealized losses related to U.S. treasury and agency obligations were $1.089 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 December 31, 2020 , gross unrealized losses related to obligations of states and political subdivisions were $0.067 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 December 31, 2020, gross unrealized losses related to mortgage-backed securities were $0.551 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 December 31, 2020, gross unrealized losses related to asset backed securities were $0.646 million. The weighted average credit enhancement for the Company’s asset backed portfolio is 33.6. 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 December 31, 2020, gross unrealized losses related to the CMBS portfolio were $0.644 million. The weighted average credit enhancement for the Company’s CMBS portfolio is 39.5. 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 December 31, 2020, gross unrealized losses related to corporate bonds were $0.373 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 December 31, 2020, gross unrealized losses related to foreign bonds were $0.027 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 impairments on its investment portfolio for the years ended December 31, 2020, 2019 and 2018 and are related to securities in an unrealized loss position where the Company had an intent to sell the securities: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Fixed maturities: OTTI losses, gross $ — $ (1,897 ) $ (456 ) Impairment related to intent to sell (760 ) — — Total $ (760 ) $ (1,897 ) $ (456 ) The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company as of December 31, 2019 and 2018 for which a portion of the OTTI loss was recognized in other comprehensive income. Years Ended December 31, (Dollars in thousands) 2019 2018 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 cash flows to be collected — — Reductions for securities sold during the period (13 ) — Balance at end of period $ — $ 13 Accumulated Other Comprehensive Income, Net of Tax Accumulated other comprehensive income, net of tax, as of December 31, 2020 and 2019 was as follows: December 31, (Dollars in thousands) 2020 2019 Net unrealized gains (losses) from: Fixed maturities $ 42,177 $ 21,591 Foreign currency fluctuations 161 (1,032 ) Deferred taxes (8,030 ) (2,950 ) Accumulated other comprehensive income, net of tax $ 34,308 $ 17,609 The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 (Dollars in thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ 18,641 $ (1,032 ) $ 17,609 Other comprehensive income (loss) before reclassification, before tax 43,430 1,193 44,623 Amounts reclassified from accumulated other comprehensive income (loss), before tax (22,844 ) — (22,844 ) Other comprehensive income (loss), before tax 20,586 1,193 21,779 Income tax benefit (expense) (5,046 ) (34 ) (5,080 ) Ending balance, net of tax $ 34,181 $ 127 $ 34,308 Year Ended December 31, 2019 (Dollars in thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ (19,897 ) $ (1,334 ) $ (21,231 ) Other comprehensive income (loss) before reclassification, before tax 50,325 302 50,627 Amounts reclassified from accumulated other comprehensive income (loss), before tax (6,059 ) — (6,059 ) Other comprehensive income (loss), before tax 44,266 302 44,568 Income tax benefit (expense) (5,728 ) — (5,728 ) Ending balance, net of tax $ 18,641 $ (1,032 ) $ 17,609 The reclassifications out of accumulated other comprehensive income for the years ended December 31, 2020 and 2019 were as follows: (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive Income Years Ended December 31, Details about Accumulated Other Comprehensive Income Components Affected Line Item in the Consolidated Statements of Operations 2020 2019 Unrealized gains and losses on available for sale securities Other net realized investment (gains) losses $ (23,604 ) $ (7,956 ) Other than temporary impairment losses on investments 760 1,897 Total before tax (22,844 ) (6,059 ) Income tax expense (benefit) 5,050 622 Unrealized gains and losses on available for sale securities, net of tax (17,794 ) (5,437 ) 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 $ (17,794 ) $ (5,437 ) Net Realized Investment Gains (Losses) The components of net realized investment gains (losses) for the years ended December 31, 2020, 2019, and 2018 were as follows: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Fixed maturities: Gross realized gains $ 28,381 $ 9,675 $ 354 Gross realized losses (5,537 ) (3,616 ) (3,277 ) Net realized gains (losses) 22,844 6,059 (2,923 ) Equity Securities: Gross realized gains 16,997 40,730 6,491 Gross realized losses (32,247 ) (6,737 ) (22,592 ) Net realized gains (losses) (15,250 ) 33,993 (16,101 ) Derivatives: Gross realized gains 19,460 3,518 3,906 Gross realized losses (41,716 ) (8,228 ) (1,789 ) Net realized gains (losses) (1) (22,256 ) (4,710 ) 2,117 Total net realized investment gains (losses) $ (14,662 ) $ 35,342 $ (16,907 ) (1) Includes periodic net interest settlements related to the derivatives of $4.5 The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of December 31, 2020, 2019, and 2018: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Net gains and (losses) recognized during the period on equity securities $ (15,250 ) $ 33,993 $ (16,101 ) Less: net gains (losses) recognized during the period on equity securities sold during the period (103 ) 10,846 5,921 Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date $ (15,147 ) $ 23,147 $ (22,022 ) The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the years ended December 31, 2020, 2019, and 2018 were as follows: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Fixed maturities $ 791,554 $ 977,321 $ 293,348 Equity securities 604,772 260,891 35,639 Net Investment Income The sources of net investment income for the years ended December 31, 2020, 2019, and 2018 were as follows: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Fixed maturities $ 31,987 $ 36,673 $ 37,085 Equity securities 4,944 7,006 4,037 Cash and cash equivalents 784 1,510 1,177 Other invested assets (6,228 ) 78 6,879 Total investment income 31,487 45,267 49,178 Investment expense (3,095 ) (3,215 ) (2,836 ) Net investment income $ 28,392 $ 42,052 $ 46,342 As of December 31, 2020 and 2019, the Company did not own any fixed maturity securities that were non-income producing for the preceding twelve months. The Company’s total investment return on a pre-tax basis for the years ended December 31, 2020, 2019, and 2018 were as follows: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Net investment income $ 28,392 $ 42,052 $ 46,342 Net realized investment gains (losses) (14,662 ) 35,342 (16,907 ) Change in unrealized holding gains and losses 21,779 44,568 (22,853 ) Net realized and unrealized investment returns 7,117 79,910 (39,760 ) Total investment return $ 35,509 $ 121,962 $ 6,582 Total investment return % 2.3 % 7.8 % 0.4 % Average investment portfolio $ 1,528,425 $ 1,558,565 $ 1,522,805 Insurance Enhanced Asset-Backed and . Credit Securities As of December 31, 2020, the Company held insurance enhanced bonds with a market value of approximately $37.3 million, which represented 2.6% of the Company’s total cash and invested assets, net of payable/receivable for securities purchased and sold. The insurance enhanced bonds are comprised of $15.2 million of municipal bonds, $14.3 million of commercial mortgage-backed securities, and $7.8 million of collateralized mortgage obligations. The financial guarantors of the Company’s $37.3 million of insurance enhanced commercial-mortgage-backed, municipal securities, and collateralized mortgage obligations include Municipal Bond Insurance Association ($3.1 million), Assured Guaranty Corporation ($9.9 million), Federal Home Loan Mortgage Corporation ($22.1 million), and Ambac Financial Group ($2.2 million). The Company had no direct investments in the entities that have provided financial guarantees or other credit support to any security held by the Company at December 31, 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 December 31, 2020 and 2019: Estimated Fair Value (Dollars in thousands) December 31, 2020 December 31, 2019 On deposit with governmental authorities $ 26,966 $ 26,431 Intercompany trusts held for the benefit of U.S. policyholders — 179,116 Held in trust pursuant to third party requirements 100,234 133,122 Letter of credit held for third party requirements 3,970 1,458 Securities held as collateral 494 91,229 Total $ 131,664 $ 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 four 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 $10.8 million and $13.5 million as of December 31, 2020 and 2019, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $25.0 million and $27.7 million at December 31, 2020 and 2019, respectively. The carrying value of a second VIE that also invests in distressed securities and assets was $15.7 million and $24.0 million as of December 31, 2020 and 2019, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $32.7 million and $41.0 million at December 31, 2020 and 2019, respectively. The carrying value of a third VIE that invests in REIT qualifying assets was $10.5 million and $9.8 million as of December 31, 2020 and 2019, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $10.5 million and $10.3 million at December 31, 2020 and 2019, respectively. During the 4th quarter, the Company made a $60.0 million investment in a fourth VIE that invests in a broad portfolio of non-investment grade loans. As of December 31, 2020, the carry value and maximum exposure to loss from this VIE were $60.0 million. The Company’s investment in VIEs is included in other invested assets on the consolidated balance sheets with changes in carrying value recorded in the consolidated statements of operations. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 5 . 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 December 31, 2020 and 2019: (Dollars in thousands) December 31, 2020 December 31, 2019 Derivatives Not Designated as Hedging Instruments under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value Interest rate swap agreements Other assets/liabilities $ 213,022 $ (16,430 ) $ 200,000 $ (10,275 ) Futures contracts on bonds (1) Other assets/liabilities 28,996 — 16,894 — Futures contracts on equities (1) Other assets/liabilities — — 57,816 — Total (2) $ 242,018 $ (16,430 ) $ 274,710 $ (10,275 ) (1) Futures are settled daily such that their fair value is not reflected in the consolidated statements of financial position (2) The derivatives are held by GBLI Holdings, LLC and are guaranteed by Global Indemnity Group, LLC The following table summarizes the net gains (losses) included in the consolidated statements of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the years ended December 31, 2020, 2019, and 2018: Consolidated Statements of Years Ended December 31, (Dollars in thousands) Operations Line 2020 2019 2018 Interest rate swap agreements Net realized investment gains (losses) $ (10,691 ) $ (7,449 ) $ 2,117 Futures contracts on bonds Net realized investment gains (losses) (2,576 ) 873 — Futures contracts on equities Net realized investment gains (losses) (8,989 ) 1,866 — $ (22,256 ) $ (4,710 ) $ 2,117 As of December 31, 2020 and 2019, the Company is due $2.8 million and $3.0 million, respectively, for funds it needed to post to execute the swap transaction and $17.5 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 December 31, 2020 and 2019, the Company posted initial margin of $0.5 million and $3.0 million, respectively, in securities for trading futures contracts and has a mark-to-market receivable of less than $0.1 million and $0.3 million, respectively, in connection with the futures contracts. Variation margin is included in other assets on the consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6 . Fair Value Measurements The accounting standards related to fair value measurements define fair value, establish a framework for measuring fair value, outline a fair value hierarchy based on inputs used to measure fair value, and enhance disclosure requirements for fair value measurements. These standards do not change existing guidance as to whether or not an instrument is carried at fair value. The Company has determined that its fair value measurements are in accordance with the requirements of these accounting standards. The Company’s invested assets and derivative instruments are carried at their fair value and are categorized based upon a fair value hierarchy: • Level 1 – inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date. • Level 2 – inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly. • Level 3 – inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset. The following table presents information about the Company’s invested assets and derivative instruments measured at fair value on a recurring basis as of December 31, 2020 and 2019 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. As of December 31, 2020 Fair Value Measurements (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 197,480 $ — $ — $ 197,480 Obligations of states and political subdivisions — 61,243 — 61,243 Mortgage-backed securities — 358,778 — 358,778 Commercial mortgage-backed securities — 110,959 — 110,959 Asset-backed securities — 117,593 — 117,593 Corporate bonds — 240,717 — 240,717 Foreign corporate bonds — 104,416 — 104,416 Total fixed maturities 197,480 993,706 — 1,191,186 Equity securities 87,307 11,683 — 98,990 Total assets measured at fair value $ 284,787 $ 1,005,389 $ — $ 1,290,176 Liabilities: Derivative instruments $ — $ 16,430 $ — $ 16,430 Total liabilities measured at fair value $ — $ 16,430 $ — $ 16,430 As of December 31, 2019 Fair Value Measurements (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 December 31, 2020 and 2019 was as follows: December 31, 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) 126,288 132,008 126,147 134,462 Total $ 126,288 $ 132,008 $ 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 $3.1 million. In August 2020, the Company redeemed all of its outstanding 7.75% subordinated notes due 2045 and unamortized debt issuance cost of $3.1 million was written off and included in the consolidated statements of operations as loss on the extinguishment of debt. (3) As of December 31, 2020 and 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 companies and limited partnerships whose carrying value approximates fair value. The following table provides the fair value and future funding commitments related to these investments at December 31, 2020 and 2019. December 31, 2020 December 31, 2019 (Dollars in thousands) Fair Value Future Funding Commitment Fair Value Future Funding Commitment European Non-Performing Loan Fund, LP (1) $ 10,808 $ 14,214 $ 13,530 $ 14,214 Distressed Debt Fund, LP (2) 15,721 17,000 23,966 17,000 Mortgage Debt Fund, LP (3) 10,489 — 9,783 506 Credit Fund, LLC (4) 60,000 — — — Total $ 97,018 $ 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. (4) This limited liability company invests in a broad portfolio of non-investment grade loans, secured and unsecured corporate debt, credit default swaps, reverse repurchase agreements and synthetic indices. The Company does have the ability to sell its interest by providing notice to the fund. Limited Liability Companies and Limited Partnerships with ownership interest exceeding 3% The Company uses the equity method to account for investments in limited liability companies and limited partnerships where its ownership interest exceeds 3%. The equity method of accounting for an investment in a limited liability companies and limited partnership requires that its cost basis be updated to account for the income or loss earned on the investment. The investment income associated with these l imited liability companies and limited partnerships, which is booked on a one quarter lag, is reflected in the consolidated statements of operations in the amounts of $ (6.2) million, less than $ 0.1 million, and $ 6.9 million for the years ended December 31, 2020 , 2019 , and 2018 , respectively. Pricing The Company’s pricing vendors provide prices for all investment categories except for investments in limited liability companies and 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 collateralized 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 2020 and 2019, the Company has not adjusted quotes or prices obtained from the pricing vendors. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill As a result of acquisitions in 2015 and 2010, the Company has goodwill, within the Specialty Property $6.5 Intangible assets The following table presents details of the Company’s intangible assets as of December 31, 2020: (Dollars in thousands) Description Weighted Average Amortization Period Cost Accumulated Amortization Net Value Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 3,784 1,516 Agent relationships 10 years 900 535 365 Tradenames 7 years 600 519 81 $ 25,800 $ 4,838 $ 20,962 The following table presents details of the Company’s intangible assets as of December 31, 2019: (Dollars in thousands) Description Weighted Average Amortization Period Cost Accumulated Amortization Net Value Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 3,430 1,870 Agent relationships 10 years 900 444 456 Tradenames 7 years 600 435 165 $ 25,800 $ 4,309 $ 21,491 Amortization related to the Company’s definite lived intangible assets was $0.5 million for each of the years ended December 31, 2020, 2019, and 2018. The weighted average amortization period for total definite lived intangible assets was 13.6 The Company expects that amortization expense for the next five years will be as follows: (Dollars in thousands) 2021 $ 524 2022 443 2023 443 2024 443 2025 108 Intangible assets with indefinite lives As of December 31, 2020 and 2019, indefinite lived intangible assets, which are comprised of tradenames, trademarks, and state insurance licenses, were $19.0 Intangible assets with definite lives As of December 31, 2020 and 2019, definite lived intangible assets, net of accumulated amortization, were $2.0 million and $2.5 million, respectively, and were comprised of customer relationships, agent relationships, and tradenames. There was no impairment of these assets in 2020 or 2019. |
Allowance for Expected Credit L
Allowance for Expected Credit Losses - Premiums Receivable and Reinsurance Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Allowance For Credit Loss [Abstract] | |
Allowance for Expected Credit Losses - Premiums Receivable and Reinsurance Receivables | 8 . Allowance for Expected Credit Losses - Premiums Receivable and Reinsurance Receivables The Company implemented new accounting guidance on January 1, 2020 related to the measurement of expected credit losses on financial instruments. Please see Note 23 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, t he 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 AM Best Ratings and other relevant factors. The following table is an analysis of the allowance for expected credit losses related to the Company's premiums receivable and reinsurance receivables for the year ended December 31, 2020: December 31, 2020 (Dollars in thousands) Premiums Receivable Reinsurance Receivables Beginning balance $ 2,754 $ 8,992 Current period provision for expected credit losses 1,050 — Write-offs (904 ) — Ending balance $ 2,900 $ 8,992 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Reinsurance | 9. Reinsurance The Company cedes risk to unrelated reinsurers on a pro rata (“quota share”) and excess of loss basis in the ordinary course of business to limit its net loss exposure on insurance contracts. Reinsurance ceded arrangements do not discharge the Company of primary liability. Moreover, reinsurers may fail to pay the Company due to a lack of reinsurer liquidity, perceived improper underwriting, and losses for risks that are excluded from reinsurance coverage and other similar factors, all of which could adversely affect the Company’s financial results. The Company had the following reinsurance balances as of December 31, 2020 and 2019: (Dollars in thousands) December 31, 2020 December 31, 2019 Reinsurance receivables, net $ 88,708 $ 83,938 Collateral securing reinsurance receivables (4,984 ) (3,802 ) Reinsurance receivables, net of collateral $ 83,724 $ 80,136 Allowance for uncollectible reinsurance receivables $ 8,992 $ 8,992 Prepaid reinsurance premiums 12,881 16,716 The reinsurance receivables above are net of a purchase accounting adjustment related to discounting acquired loss reserves to their present value and applying a risk margin to the discounted reserves. This adjustment was $0.4 million at December 31, 2019. There was no adjustment at December 31, 2020. As of December 31, 2020, the Company had one aggregate unsecured reinsurance receivables that exceeded 3% of shareholders’ equity from the following reinsurer. Unsecured reinsurance receivables include amounts receivable for paid and unpaid losses and loss adjustment expenses, less amounts secured by collateral. (Dollars in thousands) Reinsurance Receivables AM Best Ratings (As of December 31, 2020) Munich Re America Corporation $ 44,785 A+ The effect of reinsurance on premiums written and earned is as follows: (Dollars in thousands) Written Earned For the year ended December 31, 2020: Direct business $ 554,617 $ 560,658 Reinsurance assumed 51,986 69,312 Reinsurance ceded (1) (58,436 ) (62,271 ) Net premiums $ 548,167 $ 567,699 For the year ended December 31, 2019: Direct business $ 548,618 $ 527,018 Reinsurance assumed 88,243 76,893 Reinsurance ceded (1) (74,772 ) (78,649 ) Net premiums $ 562,089 $ 525,262 For the year ended December 31, 2018: Direct business $ 495,129 $ 483,229 Reinsurance assumed 52,768 68,156 Reinsurance ceded (1) (75,350 ) (83,610 ) Net premiums $ 472,547 $ 467,775 (1) Includes ceded written premiums of less than $0.1 million, ($0.3) million, and ($2.1) million and ceded earned premiums of $1.6 million, $2.3 million and $7.3 million to American Bankers Insurance Company for the years ended December 31, 2020, 2019, and 2018, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10 . Income Taxes Effective August 28, 2020, Global Indemnity Group, LLC became a publicly traded partnership for U.S. federal income tax purposes. Global Indemnity Group, LLC 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 December 31, 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 years ended December 31, 2020, 2019, and 2018 were as follows: Year Ended December 31, 2020 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 46,654 $ 559,949 $ — $ 606,603 Net written premiums $ 46,654 $ 501,513 $ — $ 548,167 Net earned premiums $ 53,384 $ 514,315 $ — $ 567,699 Net investment income 17,186 20,348 (9,142 ) 28,392 Net realized investment losses (3,867 ) (10,795 ) — (14,662 ) Other income 148 1,970 — 2,118 Total revenues 66,851 525,838 (9,142 ) 583,547 Losses and Expenses: Net losses and loss adjustment expenses 12,874 323,327 — 336,201 Acquisition costs and other underwriting expenses 17,827 197,780 — 215,607 Corporate and other operating expenses 23,357 18,641 — 41,998 Interest expense 869 24,065 (9,142 ) 15,792 Loss on extinguishment of debt 3,060 — — 3,060 Income (loss) before income taxes $ 8,864 $ (37,975 ) $ — $ (29,111 ) Year Ended December 31, 2019 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 88,282 $ 548,579 $ — $ 636,861 Net written premiums $ 88,285 $ 473,804 $ — $ 562,089 Net earned premiums $ 75,961 $ 449,301 $ — $ 525,262 Net investment income 29,307 26,816 (14,071 ) 42,052 Net realized investment gains 3,121 32,221 — 35,342 Other income (loss) (165 ) 1,981 — 1,816 Total revenues 108,224 510,319 (14,071 ) 604,472 Losses and Expenses: Net losses and loss adjustment expenses 36,502 238,900 — 275,402 Acquisition costs and other underwriting expenses 23,610 184,793 — 208,403 Corporate and other operating expenses 7,462 11,426 — 18,888 Interest expense 1,409 32,684 (14,071 ) 20,022 Income before income taxes $ 39,241 $ 42,516 $ — $ 81,757 Year Ended December 31, 2018 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 48,050 $ 499,847 $ — $ 547,897 Net written premiums $ 48,041 $ 424,506 $ — $ 472,547 Net earned premiums $ 135,826 $ 331,949 $ — $ 467,775 Net investment income 49,699 27,294 (30,651 ) 46,342 Net realized investment losses (669 ) (16,238 ) — (16,907 ) Other income (losses) (210 ) 1,938 — 1,728 Total revenues 184,646 344,943 (30,651 ) 498,938 Losses and Expenses: Net losses and loss adjustment expenses 91,178 243,447 — 334,625 Acquisition costs and other underwriting expenses 57,487 133,291 — 190,778 Corporate and other operating expenses 12,234 17,532 — 29,766 Interest expense 7,108 43,237 (30,651 ) 19,694 Income (loss) before income taxes $ 16,639 $ (92,564 ) $ — $ (75,925 ) The following table summarizes the components of income tax expense (benefit): Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Current income tax expense (benefit): Foreign $ — $ (41 ) $ 325 U.S. Federal 163 — — Total current income tax expense (benefit) 163 (41 ) 325 Deferred income tax expense (benefit): U.S. Federal (8,268 ) 11,783 (19,554 ) Total deferred income tax expense (benefit) (8,268 ) 11,783 (19,554 ) Total income tax expense (benefit) $ (8,105 ) $ 11,742 $ (19,229 ) The weighted average expected tax provision has been calculated using income (loss) before income taxes in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate: Years Ended December 31, 2020 2019 2018 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average $ (7,975 ) 27.4 % $ 8,928 10.9 % $ (19,112 ) 25.2 % Adjustments: Tax exempt interest (2 ) — (3 ) — (6 ) — Dividend exclusion (202 ) 0.7 (284 ) (0.3 ) (279 ) 0.4 Non-deductible interest 1,773 (6.1 ) 2,714 3.3 356 (0.5 ) Change in tax status (1,704 ) 5.8 — — — — Parent income treated as partnership for tax (533 ) 1.8 — — — — Other 538 (1.8 ) 387 0.5 (188 ) 0.2 Effective income tax expense (benefit) $ (8,105 ) 27.8 % $ 11,742 14.4 % $ (19,229 ) 25.3 % The effective income tax benefit rate for 2020 was 27.8%, compared with an effective income tax expense rate of 14.4% and an effective income tax benefit rate of 25.3% for 2019 and 2018, respectively. The increase in the effective income tax benefit for 2020 is primarily due to a pre-tax loss of the Company’s U.S. subsidiaries in 2020 as compared to pre-tax income in 2019. In addition, the income tax benefit for 2020 was also impacted by a change in tax status which is the income tax benefit recognized on net insurance liabilities that were redomiciled from Bermuda at a 0% tax rate to the United States at a 21% tax rate. The increase in the effective income tax expense rate in 2019 compared to 2018 is due to higher pretax income in the U.S. in 2019. The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at December 31, 2020 and 2019 are presented below: (Dollars in thousands) 2020 2019 Deferred tax assets: Discounted unpaid losses and loss adjustment expenses $ 7,490 $ 3,681 Unearned premiums 11,703 10,234 Section 163(j) carryforward 5,580 9,023 Net operating loss carryforward 26,220 21,871 Partnership K1 basis differences 796 1,703 Loss on derivative instruments 3,450 2,158 Investment impairments 147 1 Stock options 1,546 1,352 Stat-to-GAAP reinsurance reserve 1,517 874 Depreciation and amortization 863 — Other 1,860 1,840 Total deferred tax assets 61,172 52,737 Deferred tax liabilities: Intangible assets 4,505 3,112 Unrealized gain on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income 7,996 2,950 Unrealized gain on equity securities 182 3,438 Deferred acquisition costs 13,691 11,608 Depreciation and amortization — 436 Other 533 116 Total deferred tax liabilities 26,907 21,660 Total net deferred tax assets $ 34,265 $ 31,077 The deferred tax assets and deferred tax liabilities listed in the table above relate to temporary differences between the Company’s accounting and tax carrying values and carryforwards for its companies in the United States. Management believes it is more likely than not that the remaining deferred tax assets will be completely utilized in future years. As a result, the Company has not recorded a valuation allowance at December 31, 2020 and 2019. The Company has a net operating loss (“NOL”) carryforward of $26.2 million as of December 31, 2020, which begins to expire in 2036 based on when the original NOL was generated. The Company’s NOL carryforward as of December 31, 2019 was $21.9 million. The Company has a Section 163(j) (“163(j)”) carryforward of $5.6 million and $9.0 million as of December 31, 2020 and 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 $11.0 million of the AMT credit carryforward during the year ended December 31, 2020. The Company and some of its subsidiaries file income tax returns in the U.S. federal jurisdiction and various U.S. states and certain foreign jurisdictions. The Company is no longer subject to U.S. federal tax examinations by tax authorities for tax years before 2017. The Company applies a more-likely-than-not recognition threshold for all tax uncertainties whereby it only recognizes those tax benefits that have a greater than 50% likelihood of being sustained upon examination by relevant taxing authorities. All tax benefits recognized by the Company in 2020, 2019, and 2018 have a greater than 50% likelihood of being sustained upon examination by relevant taxing authorities. The Company classifies all interest and penalties related to uncertain tax positions as income tax expense. The Company did not incur any interest and penalties related to uncertain tax positions during the years ended December 31, 2020, 2019 and 2018. As of December 31, 2020, the Company did not record any liabilities for tax-related interest and penalties on its consolidated balance sheets. |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | 11 . Liability for Unpaid Losses and Loss Adjustment Expenses Consolidated Activity Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Balance at beginning of period $ 630,181 $ 680,031 $ 634,664 Less: Ceded reinsurance receivables 76,273 109,342 97,243 Net balance at beginning of period 553,908 570,689 537,421 Incurred losses and loss adjustment expenses related to: Current year 367,739 308,211 363,423 Prior years (31,538 ) (32,809 ) (28,798 ) Total incurred losses and loss adjustment expenses 336,201 275,402 334,625 Paid losses and loss adjustment expenses related to: Current year 183,109 146,128 173,545 Prior years 126,347 146,055 127,812 Total paid losses and loss adjustment expenses 309,456 292,183 301,357 Net balance at end of period 580,653 553,908 570,689 Plus: Ceded reinsurance receivables 82,158 76,273 109,342 Balance at end of period $ 662,811 $ 630,181 $ 680,031 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 2020, the Company reduced its prior accident year loss reserves by $31.5 million, which consisted of a $17.6 million decrease related to Commercial Specialty, a $6.6 million decrease related to Specialty Property, a $2.3 million decrease related to Farm, Ranch & Stable, and a $5.0 million decrease related to Reinsurance Operations. The $17.6 million reduction of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • General Liability: A $20.4 million reduction in aggregate with $6.6 million of favorable development in the construction defect reserve category and $13.8 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 Liability: A $1.8 million decrease mainly in the 2007 through 2010 and 2019 accident years recognizes lower than expected claims severity, partially offset by an increase in the 2006 accident year. • Commercial Auto Liability: A $1.0 million reduction primarily in the 2010 and 2012 through 2016 accident years recognizes lower than anticipated claims severity. • Property: A $5.8 million increase primarily recognizes higher than expected claims severity mainly in the 2013 and 2015 through 2018 accident years, partially offset by a decrease in the 2014 accident year. 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 during the year for a Property Brokerage claim. • Workers Compensation: A $0.2 million decrease primarily in loss adjustment expense reserves in the 2012 accident year and accident years prior to 2005. The $6.6 million reduction of prior accident year loss reserves related to Specialty Property primarily consisted of the following: • Property: A $4.5 million decrease reflects a decrease in the 2017 accident year catastrophe reserve categories for subrogation recoveries from the California wildfires and mainly recognizes lower than anticipated claims severity in the 2015 through 2018 accident years, partially offset by an increase in the 2019 accident year due to higher than expected claims severity. • General Liability: A $2.1 million decrease primarily recognizes lower than expected claims severity mainly in the 2015 through 2019 accident years. The $2.3 million reduction of 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. • Liability: A $0.3 million decrease primarily recognizes lower than expected claims severity mainly in the 2009 and 2015 through 2019 accident years, mostly offset by increases in the 2007 and 2013 accident years due to higher than anticipated claims severity. The $5.0 million decrease in prior accident year loss reserves related to Reinsurance Operations were primarily based on a review of the experience reported from cedants. There was a $2.9 million decrease in the property lines in the 2009 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 and a reduction of $0.4 million in the liability & workers compensation lines in the 2009 through 2012 accident years. During 2019, the Company reduced its prior accident year loss reserves by $32.8 million, which consisted of a $18.4 million decrease related to Commercial Specialty, $10.8 million decrease related to Specialty Property, $5.5 million decrease related to Farm, Ranch & Stable, and a $1.9 million increase related to Reinsurance Operations. The $18.4 million reduction of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • General Liability: A $14.5 million reduction in aggregate with $3.5 million of favorable development in the construction defect reserve category and $11.0 million of favorable development in the other general liability reserve categories. The favorable development in the construction defect reserve category recognizes better than expected claims frequency and severity in the 2004 through 2009, 2011 through 2015, 2017 and 2018 accident years, partially offset by increases in the 2010 and 2016 accident years which reflects higher than anticipated claims severity. The decreases in the other general liability reserve categories primarily recognizes lower than anticipated claims severity in the 1999 through 2014, 2016 and 2017 accident years, partially offset by an increase in the 2015 accident year which was impacted by higher than expected claims severity. • Commercial Auto Liability: A $2.0 million decrease primarily driven by better than expected claims severity in the 2000 through 2002, 2010 through 2013, 2015 and 2016 accident years. • Professional Liability: A $1.9 million reduction primarily in the 2007 through 2011 accident years recognizes better than expected claims severity. • Property: A $0.9 million decrease in aggregate mainly due to lower than anticipated claims severity in the 2012 through 2016 accident years, partially offset by increases in the 2010, 2017 and 2018 accident years which were impacted by higher 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 $10.8 million reduction of prior accident year loss reserves related to Specialty Property primarily consisted of the following: • Property: A $10.2 million decrease in aggregate primarily recognizes a reduction in the catastrophe reserve category for subrogation recoveries from the California Camp wildfire loss in the 2018 accident year. There also was favorable development in accident years 2015 through 2017 reflecting better than expected claims severity. • General Liability: A $0.6 million decrease primarily recognizes lower than expected claims severity in the 2014 through 2016 and 2018 accident years, partially offset by increases in the 2010 and 2017 accident years, recognizing higher than expected claims severity. The $5.5 million reduction of prior accident year loss reserves related to Farm, Ranch & Stable primarily consisted of the following: • Property: A $3.9 million decrease in aggregate in the 2015 through 2018 accident years primarily reflects lower than expected claims severity. Also, there were ceded recoveries from a second accident quarter catastrophe in the 2018 accident year leading to favorable development in that year. • Liability: A $1.6 million decrease primarily in the 2015 through 2017 accident years recognizes lower than anticipated claims severity, partially offset by increases in the 2013, 2014, and 2018 accident years which reflects higher than expected claims severity. The $1.9 million increase in prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following: • Property: A $5.0 million increase primarily in the 2016 through 2018 accident years partially offset by favorable development in the 2011 through 2015 accident years based on a review of the experience reported from the cedants. The 2018 accident year was adversely impacted by $9.0 million of development from Typhoon Jebi. • Professional Liability: A $3.1 million decrease was recognized in the 2008, 2010 and 2013 through 2015 accident years, partially offset by an increase in the 2007 accident year based on a review of the experience reported from the cedants. During 2018, the Company reduced its prior accident year loss reserves by $28.8 million, which consisted of a $7.3 million decrease related to Commercial Specialty, $7.9 million decrease related to Specialty Property, $4.7 million decrease related to Farm, Ranch & Stable, and a $8.9 million decrease related to Reinsurance Operations. The $7.3 million reduction of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • General Liability: A $1.3 million reduction in reserve categories excluding construction defect. Lower than expected claims severity was the primary driver of the favorable development, mainly in the 2002 through 2004, 2006 through 2010, and 2012 through 2014 accident years which was partially offset by increases in the 2011 and 2015 through 2017 accident years. • Commercial Auto Liability: A $3.2 million decrease in the aggregate primarily due to a reduction in the 2010, 2012 and 2013 accident years resulting from lower than anticipated claims severity partially offset by an increase in the 2015 and 2017 accident years. • Professional Liability: A $0.9 million decrease reflects lower than expected claims severity mainly in the 2008, 2011, and 2014 accident years. • Property: A $1.9 million decrease in the aggregate recognizes lower than anticipated claims severity primarily in the 2007, 2014, 2015, and 2017 accident years partially offset by an increase in the 2016 accident year. The $7.9 million reduction of prior accident year loss reserves related to Specialty Property primarily consisted of the following: • Property: A $5.7 million reduction in the property reserve categories. The decrease reflects lower than anticipated claims severity primarily in the 2014 through 2017 accident years. • General Liability: A $2.2 million decrease primarily in the 2011 through 2014 and 2016 through 2017 accident years, which recognizes lower than expected claims severity, partially offset by an increase in the 2015 accident year which reflects higher than expected claims severity. The $4.7 reduction of prior accident year loss reserves related to Farm, Ranch & Stable primarily consisted of the following: • Property: A $1.3 million reduction primarily in the 2014 through 2017 accident years mainly reflects lower than expected claims severity. • Liability: A $3.4 million decrease reflects lower than expected claims severity primarily in the 2012, 2014, 2016 and 2017 accident years, partially offset by increases in the 2007 and 2013 accident years recognizing higher than anticipated claims severity. The $8.9 million reduction of prior accident year loss reserves related to Reinsurance Operations was from the property lines for accident years 2007, 2009 through 2012, 2015, and 2016 partially offset by increases in the 2013, 2014, and 2017 accident years. The accident year changes were based on a review of the experience reported from cedants. Prior to 2001, the Company underwrote multi-peril business insuring general contractors, developers, and sub-contractors primarily involved in residential construction that has resulted in significant exposure to construction defect (“CD”) claims. The Company’s reserves for CD claims are established based upon management’s best estimate in consideration of known facts, existing case law and generally accepted actuarial methodologies. However, due to the inherent uncertainty concerning this type of business, the ultimate exposure for these claims may vary significantly from the amounts currently recorded. As of December 31, 2020 and 2019, gross reserves for CD claims were $31.4 million and $36.9 million, respectively, and net reserves for CD claims were $29.8 million and $35.4 million, respectively. The Company has exposure to asbestos and environmental (“A&E”) claims. The asbestos exposure primarily arises from the sale of product liability insurance, and the environmental exposure arises from the sale of general liability and commercial multi-peril insurance. In establishing the liability for unpaid losses and loss adjustment expenses related to A&E exposures, management considers facts currently known and the current state of the law and coverage litigation. Liabilities are recognized for known claims (including the cost of related litigation) when sufficient information has been developed to indicate the involvement of a specific insurance policy, and management can reasonably estimate its liability. In addition, liabilities have been established to cover additional exposures on both known and unasserted claims. Estimates of the liabilities are reviewed and updated regularly. Case law continues to evolve for such claims, and uncertainty exists about the outcome of coverage litigation and whether past claim experience will be representative of future claim experience. Included in net unpaid losses and loss adjustment expenses as of December 31, 2020, 2019, and 2018 were IBNR reserves of $27.3 million, $27.1 million, and $27.4 million, respectively, and case reserves of approximately $1.4 million, $2.0 million, and $2.1 million, respectively, for known A&E-related claims. The following table shows the Company’s gross reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Gross reserve for A&E losses and loss adjustment expenses – beginning of period $ 48,825 $ 50,445 $ 51,873 Plus: Change in incurred losses and loss adjustment expenses (259 ) (2 ) (1 ) Less: Payments 973 1,618 1,427 Gross reserves for A&E losses and loss adjustment expenses – end of period $ 47,593 $ 48,825 $ 50,445 The following table shows the Company’s net reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Net reserve for A&E losses and loss adjustment expenses – beginning of period $ 29,033 $ 29,524 $ 30,124 Plus: Change in incurred losses and loss adjustment expenses 1 (1 ) — Less: Payments 355 490 600 Net reserves for A&E losses and loss adjustment expenses – end of period $ 28,679 $ 29,033 $ 29,524 Establishing reserves for A&E and other mass tort claims involves more judgment than other types of claims due to, among other things, inconsistent court decisions, an increase in bankruptcy filings as a result of asbestos-related liabilities, and judicial interpretations that often expand theories of recovery and broaden the scope of coverage. The insurance industry continues to receive a substantial number of asbestos-related bodily injury claims, with an increasing focus being directed toward other parties, including installers of products containing asbestos rather than against asbestos manufacturers. This shift has resulted in significant insurance coverage litigation implicating applicable coverage defenses or determinations, if any, including but not limited to, determinations as to whether or not an asbestos-related bodily injury claim is subject to aggregate limits of liability found in most comprehensive general liability policies. As of December 31, 2020, 2019, and 2018, the survival ratio on a gross basis for the Company’s open A&E claims was 35.5 years, 32.1 years, and 24.2 years, respectively. As of December 31, 2020, 2019, and 2018, the survival ratio on a net basis for the Company’s open A&E claims was 59.5 years, 47.8 years, and 35.7 years, respectively. The survival ratio, which is the ratio of gross or net reserves to the 3-year average of annual paid claims, is a financial measure that indicates how long the current amount of gross or net reserves are expected to last based on the current rate of paid claims. Line of Business Categories The following is information, presented by lines of business with similar characteristics including similar payout patterns, about incurred and paid claims development as of December 31, 2020, net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities included within the net incurred claims amounts. The years included represent the number of years for which claims incurred typically remain outstanding but need not exceed 10 years including the most recent report period presented. The information about incurred and paid claims development for the years ended December 31, 2010 to 2019, is presented as required supplementary unaudited information. Commercial Specialty Property and Casualty Methodologies Commercial Specialty’s internal actuarial reserve reviews were completed for loss and allocated loss adjustment expenses (“ALAE”) separately for property excluding catastrophe experience, property catastrophes, and casualty reserve categories. The internal actuarial th Commercial Specialty’s cumulative claim frequency has been calculated at the claim level and includes claims closed without payment. Commercial Specialty – Property (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2018 2019 2020 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) 2018 $ 60,555 $ 62,219 $ 66,925 $ 5,114 2,698 2019 54,853 54,974 2,543 2,903 2020 84,693 14,729 3,812 Total $ 206,592 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Commercial Specialty – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2018 2019 2020 (unaudited) (unaudited) 2018 $ 36,161 $ 54,400 $ 56,350 2019 34,921 48,737 2020 51,119 Total 156,206 All outstanding liabilities before 2018, net of reinsurance 2,344 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 52,730 The following is required supplementary information about average historical claims duration as of December 31, 2020: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 Commercial Specialty - Property 59.3 % 26.2 % 2.9 % Commercial Specialty – Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2011 $ 115,441 $ 117,602 $ 117,288 $ 115,193 $ 108,720 $ 96,361 $ 84,269 $ 87,045 $ 83,825 $ 82,777 $ 3,163 3,895 2012 61,340 65,911 65,637 63,359 55,137 52,504 50,022 47,966 45,404 3,567 2,406 2013 63,807 68,089 67,702 66,301 64,877 61,487 58,756 56,696 2,248 2,555 2014 61,325 60,227 58,042 56,837 56,129 53,955 50,311 4,619 2,354 2015 57,262 56,620 57,775 58,392 59,568 55,821 5,233 2,112 2016 54,130 53,776 53,584 51,893 52,564 6,607 1,948 2017 54,338 54,572 53,385 54,227 8,316 1,854 2018 57,879 57,457 57,766 18,596 2,223 2019 68,952 68,938 33,346 2,340 2020 83,372 64,738 1,778 Total $ 607,876 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Commercial Specialty – Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2011 $ 5,451 $ 21,325 $ 41,282 $ 56,562 $ 64,722 $ 72,087 $ 74,839 $ 77,675 $ 78,595 $ 79,121 2012 3,500 11,884 22,456 31,231 36,360 39,596 39,899 40,595 40,877 2013 6,400 17,881 29,510 38,438 46,272 50,964 52,265 52,991 2014 3,968 15,690 26,268 33,697 39,361 42,517 44,842 2015 3,336 14,584 25,147 35,816 42,543 45,661 2016 4,135 14,027 21,966 34,872 40,531 2017 4,914 12,711 22,988 33,137 2018 4,297 13,827 22,065 2019 5,174 13,954 2020 5,466 Total 378,645 All outstanding liabilities before 2011, net of reinsurance 58,261 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 287,492 The following is required supplementary information about average historical claims duration as of December 31, 2020: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 8 9 10 Commercial Specialty - Casualty 7.8 % 18.2 % 19.5 % 18.7 % 11.5 % 7.2 % 2.7 % 2.1 % 0.9 % 0.6 % Specialty Property Property and Casualty Methodologies Specialty Property’s internal actuarial reserve reviews were completed for loss and allocated loss adjustment expenses (ALAE) separately for property excluding catastrophe experience, property catastrophes, and casualty reserve categories. The internal actuarial th Specialty Property is primarily comprised of business acquired in the purchase of American Reliable, which occurred on January 1, 2015. The acquisition included the purchase of the business of the legal entity as well as additional books of business written by other Assurant entities. In addition, ceding arrangements subsequent to the date of the acquisition are not consistent with years prior to the acquisition. As a result, it is not practical, nor would it be consistent, to include information for years prior to 2015 in the development tables for Specialty Property. Specialty Property’s cumulative claim frequency has been calculated at the claim level and includes claims closed without payment. Specialty Property – Property (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2019 2020 IBNR (1) Cumulative Number of Reported Claims (unaudited) 2019 $ 79,798 $ 80,721 $ 2,722 10,379 2020 94,686 5,532 11,049 Total $ 175,407 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Specialty Property – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2019 2020 (unaudited) 2019 $ 66,786 $ 76,942 2020 84,514 Total 161,456 All outstanding liabilities before 2019, net of reinsurance 5,339 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 19,290 The following is required supplementary information about average historical claims duration as of December 31, 2020. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 Specialty Property - Property 86.0 % 12.6 % Specialty Property – Casualty (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2015 2016 2017 2018 2019 2020 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 6,875 $ 8,455 $ 11,230 $ 11,656 $ 11,412 $ 11,208 $ 793 857 2016 8,249 8,068 7,613 6,713 6,495 1,249 855 2017 7,213 6,966 7,515 7,366 932 506 2018 5,242 5,028 4,875 2,467 339 2019 3,986 3,948 2,170 282 2020 3,503 2,386 202 Total $ 37,395 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Specialty Property – Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2020 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 1,301 $ 4,979 $ 6,698 $ 9,129 $ 10,050 $ 10,136 2016 1,165 2,654 3,889 4,856 4,971 2017 979 2,658 4,502 5,803 2018 248 1,339 1,844 2019 397 1,221 2020 552 Total 24,527 All outstanding liabilities before 2015, net of reinsurance 661 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 13,529 The following is required supplementary information about average historical claims duration as of December 31, 2020: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 Specialty Property - Casualty 12.3 % 24.4 % 17.4 % 18.1 % 5.0 % 0.8 % Farm, Ranch & Stable Property and Casualty Methodologies Farm, Ranch & Stable’s internal actuarial reserve reviews were completed for loss and allocated loss adjustment expenses (ALAE) separately for property excluding catastrophe experience, property catastrophes, and casualty reserve categories. The internal actuarial th Farm, Ranch & Stable is primarily comprised of business acquired in the purchase of American Reliable, which occurred on January 1, 2015. The acquisition included the purchase of the business of the legal entity as well as additional books of business written by other Assurant entities. In addition, ceding arrangements subsequent to the date of the acquisition are not consistent with years prior to the acquisition. As a result, it is not practical, nor would it be consistent, to include information for years prior to 2015 in the development tables for Farm, Ranch & Stable. Farm, Ranch & Stable’s cumulative claim frequency has been calculated at the claim level and includes claims closed without payment. Farm, Ranch & Stable – Property (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2019 2020 IBNR (1) Cumulative Number of Reported Claims (unaudited) 2019 $ 37,120 $ 37,350 $ 1,406 3,023 2020 38,226 1,810 2,821 Total $ 75,576 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Farm, Ranch & Stable – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2019 2020 (unaudited) 2019 $ 31,461 $ 35,338 2020 32,721 Total 68,059 All outstanding liabilities before 2019, net of reinsurance 1,214 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 8,731 The following is required supplementary information about average historical claims duration as of December 31, 2020. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 Farm, Ranch & Stable - Property 84.9 % 10.4 % Farm, Ranch & Stable – Casualty (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2015 2016 2017 2018 2019 2020 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 12,055 $ 12,052 $ 10,621 $ 10,664 $ 10,383 $ 10,145 $ 1,059 475 2016 13,226 13,005 11,977 10,507 10,420 1,495 545 2017 12,786 12,171 10,600 10,167 3,493 488 2018 9,934 10,559 10,695 1,998 548 2019 9,781 9,746 4,616 504 2020 9,963 7,689 404 Total $ 61,136 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Farm, Ranch & Stable – Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2020 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 2,138 $ 3,778 $ 6,228 $ 6,986 $ 8,481 $ 9,057 2016 2,342 4,231 5,954 7,069 7,615 2017 1,153 2,145 4,242 6,156 2018 1,092 3,225 7,125 2019 1,626 3,853 2020 1,075 Total 34,881 All outstanding liabilities before 2015, net of reinsurance 1,130 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 27,385 The following is required supplementary information about average historical claims duration as of December 31, 2020: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 Farm, Ranch & Stable - Casualty 15.4 % 17.4 % 24.4 % 12.3 % 10.0 % 5.7 % Reinsurance Lines Property & Casualty Methodologies Reinsurance Operations’ internal reserve reviews were completed for loss and allocated loss adjustment expenses (ALAE) combined for run off treaties and the current book of business. The current book of business is constituted of professional liability portfolios and retrocessions from Bermuda based companies for property catastrophe, marine and casualty business. The reserve reviews were completed based on the latest data reported from the cedants which is typically on a quarter lag. Paid loss, ALAE and Case reserves, shown in the reinsurance category tables below, which are originally based in a foreign currency, are remeasured in U.S. dollars based on the Foreign Exchange (FX) rate at the end of the period. Management’s ultimate selections were based on a review of ultimates reported from the cedants, including loss emergence during the reporting period, and consideration of the internal actuarial review and a third party actuarial review completed during the 4 th The Company does not have direct access to claim frequency information underlying certain reinsurance contracts. As a result, the Company does not believe providing claim frequency information is practicable. Reinsurance Lines – Property (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2014 2015 2016 2017 2018 2019 2020 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2014 $ 21,787 $ 18,861 $ 14,139 $ 13,590 $ 14,301 $ 13,554 $ 13,170 $ 330 — 2015 19,877 16,738 12,526 9,945 9,050 8,434 602 — 2016 23,646 22,485 12,497 13,021 11,902 1,176 — 2017 43,782 50,032 51,711 47,197 5,042 — 2018 59,022 66,314 65,190 11,107 — 2019 32,442 36,896 9,576 — 2020 13,751 9,209 — Total $ 196,540 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Reinsurance Lines – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2014 2015 2016 2017 2018 2019 2020 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2014 $ 2,243 $ 9,035 $ 10,460 $ 11,182 $ 12,339 $ 12,480 $ 12,558 2015 742 5,163 6,768 7,139 7,411 7,492 2016 2,071 5,704 7,161 8,514 9,399 2017 2,152 20,609 28,079 32,668 2018 21 21,608 36,936 2019 139 13,033 2020 561 Total 112,647 All outstanding liabilities before 2014, net of reinsurance 728 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 84,621 The following is required supplementary information about average historical claims duration as of December 31, 2020: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 Reinsurance Lines - Property 7.5% 40.3% 16.3% 7.7% 6.5% 1.0% 0.6% Reinsurance Lines – Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2011 2012 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 1 2 . Debt The Company’s outstanding debt consisted of the following at December 31, 2020 and 2019: December 31, (Dollars in thousands) 2020 2019 Margin Borrowing Facility $ — $ 73,629 7.75% Subordinated Notes due 2045 — 96,864 7.875% Subordinated Notes due 2047 126,288 126,147 Total $ 126,288 $ 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 December 31, 2020 and 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. The Company did not have any securities that were deposited as collateral at December 31, 2020. As of December 31, 2019, approximately $88.2 million in securities were deposited as collateral to support borrowings. The amount borrowed against the margin account may fluctuate as routine investment transactions, such as dividends received, investment income received, maturities and pay-downs, 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 December 31, 2020. The Company recorded interest expense related to the Margin Borrowing Facility of approximately $0.5 million, $1.8 million, and $1.4 million for the years ended December 31, 2020, 2019, and 2018, respectively. 7.75% Subordinated Notes due 2045 In August 2020, GBLI Holdings and Global Indemnity Limited redeemed the entire outstanding $100.0 million aggregate principal amount of 7.75% Subordinated Notes due 2045 (“2045 Notes”). In connection with the redemption, the Company wrote off deferred issuance costs of $3.1 million which was recognized as a loss on extinguishment of debt in its consolidated statements of operations for the year ended December 31, 2020. Interest expense, including amortization of deferred issuance costs through the date of redemption, recognized on the 2045 Notes was $4.9 million, $7.9 million, and $7.9 million for the years ended December 31, 2020, 2019, and 2018, 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 $10.4 million for each of the years ended December 31, 2020, 2019, and 2018. The following table represents the amounts recorded for the subordinated notes as of December 31, 2020 and 2019: December 31, 2020 (Dollars in thousands) Outstanding Principal Unamortized Debt Issuance Costs Net Carrying Amount 7.875% Subordinated Notes due 2047 130,000 (3,712 ) 126,288 $ 130,000 $ (3,712 ) $ 126,288 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 Global Indemnity Limited under the Indenture, including the obligations of Global 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, G lobal 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 In April, 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 1 3 . Leases Effective January 1, 2019, the Company adopted new accounting guidance which increased transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The Company adopted this new accounting guidance using the optional transition method. Under this method, the Company applied the new leases standard at the adoption date and recognized a cumulative effect adjustment of less than $0.1 million to the opening balance sheet of retained earnings. The Company elected the package of practical expedients permitted under the transition guidance within the new standard. In addition, the Company elected the hindsight practical expedient to determine the lease term for existing leases. The Company determines if an arrangement is a lease at inception. Leases with a term of 12 months or less are not recorded on the consolidated balance sheets. For leases with a term of greater than 12 months, lease right-of-use assets (“ROU”) are included in other assets on the consolidated balance sheets and lease liabilities are included in other liabilities on the consolidated balance sheets. Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company’s leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate at the commencement date in determining the present value of future payments. The ROU assets are calculated using the initial lease liability amount, plus any lease payments made at or before the commencement date, minus any lease incentives received, plus any initial direct costs incurred. The Company’s lease agreements may contain both lease and non-lease components which are accounted separately. The Company elected the practical expedient on not separating lease components from non-lease components for its equipment leases. The Company leases office space and equipment under various operating lease arrangements. The Company’s leases have remaining lease terms ranging from 3 months to 10 years. Some building leases have options to extend, terminate, or retract the leased area. The Company did not factor in term extension, terminations, or space retractions into the lease terms used to calculate the right-of-use assets and lease liabilities since it was uncertain as to whether these options would be executed. The Company is also party to certain service contracts. These agreements will continue to be accounted for as service contracts and expensed in the period the services have been provided. As contracts are signed, renewed, or renegotiated, they will be evaluated using the criteria set forth in the new lease guidance to determine if these contracts contain a lease and will be accounted for properly depending upon the terms and language in the contract. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. The components of lease expenses were as follows: Years Ended December 31, (Dollars in thousands) 2020 2019 Operating lease expenses $ 2,952 $ 3,293 Short-term lease expenses 7 7 Total lease expenses $ 2,959 $ 3,300 Prior to the adoption of the new accounting guidance, rental expense under operating leases was $3.5 million for the year ended December 31, 2018. There was no sublease income for the years ended December 31, 2020, 2019, and 2018. Supplemental cash flow information related to leases was as follows: Years Ended December 31, (Dollars in thousands) 2020 2019 Cash paid for amounts included in the measurement of liabilities: Operating leases $ 2,012 $ 2,530 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 772 $ 13,858 Supplemental balance sheet information related to leases was as follows: The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheets. December 31, (Dollars in thousands) Classification on the consolidated balance sheets 2020 2019 Assets: Operating lease assets Other assets $ 21,077 $ 22,761 Liabilities: Operating lease liabilities Other liabilities $ 22,950 $ 23,539 Weighted-average remaining lease term Operating leases 8.8 years 10.2 years Weighted-average discount rate Operating leases (1) 2.6 % 2.7 % (1) Represents the Company’s incremental borrowing rate At December 31, 2020, future minimum lease payments under non-cancelable operating leases were as follows: (Dollars in thousands) 2021 $ 2,883 2022 2,756 2023 2,790 2024 2,816 2025 2,871 Thereafter 11,657 Total future minimum lease payments 25,773 Less: amount representing interest 2,823 Present value of minimum lease payments $ 22,950 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | 1 4 . Shareholders’ Equity On August 28, 2020, Global Indemnity completed a 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 Global Indemnity Group, LLC 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, Global Indemnity Group, LLC Global Indemnity Group, LLC The preferred shares are redeemable at the discretion of Global Indemnity Group, LLC after five years or at the discretion of the holders upon the occurrence of a change in control of Global Indemnity Group, LLC. While the preferred shares are non-voting, the preferred shareholders are entitled to appoint two additional members to Global Indemnity Group, LLC’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 and Global Indemnity Group, LLC’s Board of Directors is obligated to take, and cause Global Indemnity Group, LLC’s officers to take, any necessary actions to effectuate such appointments, including expanding the size of the Board of Directors, in connection with any exercise of the foregoing provisions. Following the effective time of the Redomestication (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 Global Indemnity Group, LLC Distribution Restrictions The ability of Global Indemnity Group, LLC to pay distributions is subject to applicable federal and state laws and Global Indemnity Group, LLC’s LLCA. Distributions of cash or other assets of Global Indemnity Group, LLC may be paid to Global Indemnity Group, LLC’s shareholders out of Global Indemnity Group, LLC’s assets legally available therefor only when, and if determined by the Board. Each Series A Preferred Shareholder is entitled to a “Priority Return” (as defined in the applicable Share Designation). On each Distribution Date, Global Indemnity Group, LLC shall make a distribution to each holder of the Series A Preferred Shares out of, and subject to a determination by the Board that the Company has on the applicable Distribution Date, funds legally available therefor, payable in cash only, in an amount equal to the estimated amount necessary to reduce the Unpaid Priority Return of each Series A Preferred Share immediately after such Distribution Date to zero. All such distributions shall be made pro rata in relation to each such Series A Preferred Share’s Unpaid Priority Return. Since Global Indemnity Group, LLC is a holding company and has no direct operations, its ability to pay distributions depends, in part, on the ability of its subsidiaries to pay dividends. Penn-Patriot Insurance Company and its insurance subsidiaries are subject to significant regulatory restrictions limiting their ability to declare and pay dividends. Global Indemnity Investments, Inc. is dependent on generating investment income in order to pay a dividend to Global Indemnity Group, LLC. See Note 20 for additional information regarding dividend limitations imposed on Penn-Patriot Insurance Company and its subsidiaries. Dividend / Distribution Program During the fourth quarter of 2017, Global Indemnity announced the adoption of a dividend / distribution program. Although subject to the absolute discretion of the Board of Directors and factors, conditions, and prospects as such may exist from time to time when the Board of Directors considers the advisability of declaring a quarterly dividend / distribution, Global Indemnity Group, LLC Dividends / Distributions Dividend & distribution payments of $0.25 per common share per quarter were declared during the year ended December 31, 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 December 6, 2020 (2) December 24, 2020 December 31, 2020 3,558 Various (3) Various Various 451 Total $ 14,645 (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 per quarter were declared during the year ended December 31, 2019 as follows: Approval Date Record Date Payment Date Total Dividends / Distributions 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 December 8, 2019 December 24, 2019 December 31, 2019 3,532 Various (1) Various Various 268 Total $ 14,374 (1) Represents dividends declared on unvested shares, net of forfeitures. Dividend payments of $0.25 per common share per quarter were declared during the year ended December 31, 2018 as follows: Approval Date Record Date Payment Date Total Dividends / Distributions Declared (Dollars in thousands) March 4, 2018 March 21, 2018 March 29, 2018 $ 3,499 June 3, 2018 June 22, 2018 June 29, 2018 3,502 September 16, 2018 September 27, 2018 October 1, 2018 3,504 December 2, 2018 December 24, 2018 December 31, 2018 3,506 Various (1) Various Various 197 Total $ 14,208 (1) Represents dividends declared on unvested shares, net of forfeitures. In addition, distributions of $0.1 million were paid to Global Indemnity Group, LLC’s preferred shareholders during the year ended December 31, 2020. As of December 31, 2020 and 2019, accrued dividends on unvested common shares, which were included in other liabilities on the consolidated balance sheets, were $0.7 million and $0.3 million, respectively. Accrued preferred distributions were less than $0.1 million as of December 31, 2020 and were also included in other liabilities on the consolidated balance sheets. There was no accrued preferred distributions at December 31, 2019. Repurchases and Redemptions of Global Indemnity Group, LLC ’s Common Shares Global Indemnity Group, LLC allows employees to surrender A common shares as payment for the tax liability incurred upon the vesting of restricted stock that was issued under the Company’s share incentive plan in effect at the time of issuance. During 2020, 2019, and 2018, Global Indemnity purchased an aggregate of 5,120, 27,028 and 45,233, respectively, of surrendered A common shares from its employees for $0.2 million, $0.9 million and $1.8 million, respectively. All shares purchased from employees by Global Indemnity Group, LLC are held as treasury stock and recorded at cost until formally retired by Global Indemnity Group, LLC. The following table provides information with respect to the class A common shares that were surrendered, repurchased, or redeemed in 2020: Period (1) Total Number of Shares Purchased or Redeemed 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 Class A common shares: January 1-31, 2020 3,124 (2) $ 29.63 — — February 1-28, 2020 1,600 (2) $ 31.13 — — August 1-31, 2020 396 (2) $ 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. There were no class B common shares that were surrendered, repurchased, or redeemed in 2020. The following table provides information with respect to the class A common shares that were surrendered, repurchased, or redeemed in 2019: Period (1) Total Number of Shares Purchased or Redeemed 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 Class A common shares: 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, repurchased, or redeemed in 2019. Each class A common share has one vote and each B common share has ten votes. As of December 31, 2020, Global Indemnity Group, LLC’s class A common shares were held by approximately 180 shareholders of record. There were four holders of record of Global Indemnity Group, LLC’s class B common shares, all of whom are affiliated investment funds of Fox Paine & Company, LLC, as of December 31, 2020. Global Indemnity Group, LLC’s preferred shares were held by 1 holder of record, an affiliate of Fox Paine & Company, LLC, as of December 31, 2020. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. Related Party Transactions Fox Paine Entities Pursuant to Global Indemnity Group, LLC’s LLCA, Fox Paine Capital Fund II International, L.P. and certain of its affiliates (the “Fox Paine Funds”), together with Fox Mercury Investments, L.P. and certain of its affiliates (the “FM Entities”), and Fox Paine & Company LLC (collectively, the “Fox Paine Entities”) currently constitute a Class B Majority Shareholder (as defined in the LLCA) and, as such, have the right to appoint a number of Global Indemnity Group, LLC’s directors equal in aggregate to the pro rata percentage of the voting power in Global Indemnity Group, LLC beneficially held by the Fox Paine Entities, rounded up to the nearest whole number of directors. The Fox Paine Entities beneficially own shares representing approximately 83.9% of the voting power of Global Indemnity Group, LLC as of December 31, 2020. The Fox Paine Entities control the election of all of Global Indemnity Group, LLC ’s Directors due to their controlling share ownership. Global Indemnity Group, LLC ’s Chairman is the chief executive and founder of Fox Paine & Company, LLC. On August 27, 2020, Global Indemnity Group, LLC 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 these preferred interests are non-voting, the preferred shareholders are entitled to appoint two additional members to Global Indemnity Group, LLC’s Board of Directors whenever the “Unpaid Targeted Priority Return” with respect to the preferred interests exceed zero immediately following six or more “Distribution Dates”, whether or not such Distribution Dates occur consecutively. Global Indemnity Group, LLC’s Board of Directors is obligated to take, and cause Global Indemnity Group, LLC’s officers to take, any necessary actions to effectuate such appointments, including expanding the size of the Board of Directors, in connection with any exercise of the foregoing provisions. See Note 14 of the notes to consolidated financial statements in Item 8 of Part II of this report for additional information on the Series A Cumulative Fixed Rate Preferred Interests. Pursuant to the Third Amended and Restated Management Agreement, (“Management Agreement”) dated August 28, 2020, between Global Indemnity Group, LLC and Fox Paine & Company, LLC, Global Indemnity Group, LLC agrees to pay, or to cause one of its affiliates to pay, an annual service fee (“Annual Service Fee”) as compensation for Fox Paine & Company, LLC’s ongoing provision of certain financial and strategic consulting, advisory and other services to Global Indemnity Group, LLC and its affiliates, and to reimburse all direct and indirect expenses paid or incurred in connection with such services upon request, excluding expenses for travel, lodging, meals, and other items relating to attendance at regularly scheduled meetings of the Board of Directors. For the twelve-month period beginning on September 5, 2019 and ending September 4, 2020, the Annual Service Fee was equal to $2.6 million, which amount will be adjusted on an ongoing basis in each subsequent twelve-month period to reflect the aggregate increase in the CPI-U. Should Global Indemnity Group, LLC and Fox Paine & Company, LLC agree that the Annual Service Fee will be deferred, the Annual Service Fee will become subject to an annual adjustment equal to the percentage rate of return the Company earns on its investment portfolio multiplied by the aggregate Annual Service Fees and adjustment amounts accumulated and unpaid through such date . Management fee expense of $2.6 million, $2.1 million, and $2.1 million was incurred during the years ended December 31, 2020, 2019, and 2018, respectively. Prepaid management fees, which were included in other assets on the consolidated balance sheets, were $1.8 million and $1.4 million as of December 31, 2020 and 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 and conflict matter policies, including approval of Global Indemnity Group, LLC’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 either Global Indemnity Group, LLC’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). Recapitalization and Reorganization Transactions Fee On April 25, 2018, Global Indemnity Limited and its indirect wholly-owned subsidiaries (including GBLI Holdings, LLC and Global Indemnity Reinsurance) entered into a series of recapitalization and reorganization transactions (collectively, the “Reorganization”) designed to improve the Company’s annual results and long-term financial performance. Pursuant to the Reorganization, the Company’s affiliated group implemented the following, among other things: (i) GBLI Holdings, LLC became a subordinated co-obligor with Global Indemnity Limited under the Company’s 7.75% Subordinated Notes due in 2045 and its 7.875% Subordinated Notes due in 2047, (ii) GBLI Holdings, LLC agreed to provide capital to Global Indemnity Reinsurance from time to time to satisfy Global Indemnity Reinsurance’s obligations incurred in connection with its insurance and reinsurance business and (iii) GBLI Holdings, LLC received a promissory note from Global Indemnity Limited, which was subsequently assigned within the Company’s affiliated group in connection with the settlement of certain intra-group indebtedness. Fox Paine & Company, LLC acted as financial advisor to the Company's affiliated group in connection with the design, structuring and implementation of the Reorganization. Fox Paine & Company, LLC’s services for the Company’s affiliated group in connection with the Reorganization were performed during the first and second quarter of 2018. The total fee for these services was $12.5 million which was paid in June 2018. As with each of the Company's transactions with Fox Paine & Company, LLC, this transaction was reviewed and approved by Global Indemnity Group, LLC 's Audit Committee and the Board of Directors (other than Saul A. Fox, Chairman of the Board of Directors of Global Indemnity Group, LLC and Chief Executive of Fox Paine & Company, LLC, who is not a member of the Audit Committee and recused himself from the Board of Directors’ deliberations), and, in connection with its review and approval of this transaction, the Audit Committee also engaged its own investment banking firm for advice. 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 during the year ended December 31, 2020. The $10.0 million fee was approved by the Conflicts Committee. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 6 . Commitments and Contingencies Legal Proceedings The Company is, from time to time, involved in various legal proceedings in the ordinary course of business. The Company maintains insurance and reinsurance coverage for such risks in amounts that it considers adequate. However, there can be no assurance that the insurance and reinsurance coverage that the Company maintains is sufficient or will be available in adequate amounts or at a reasonable cost. The Company does not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material adverse effect on its business, results of operations, cash flows, or financial condition. There is a greater potential for disputes with reinsurers who are in runoff. Some of the Company’s reinsurers’ have operations that are in runoff, and therefore, the Company closely monitors those relationships. The Company anticipates that, similar to the rest of the insurance and reinsurance industry, it will continue to be subject to litigation and arbitration proceedings in the ordinary course of business. Commitments In 2014, the Company entered into a $50 million commitment to purchase an alternative investment vehicle which is comprised of European non-performing loans. As of December 31, 2020, the Company has funded $35.8 million of this commitment leaving $14.2 million as unfunded. Since the investment period has concluded, the Company expects minimal capital calls will be made prospectively. 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 December 31, 2020, the Company has funded $33.0 million of this commitment leaving $17.0 million as unfunded. Since the investment period has concluded, the Company expects minimal capital calls will be made prospectively. 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 December 31, 2020, the Company has fully funded this commitment. In 2020, the Company entered into a $60 million commitment to purchase an alternative investment vehicle which is comprised of non-investment grade loans. As of December 31, 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 15 above for additional information pertaining to this management agreement. COVID-19 There is risk that legislation could be passed or there could be a court ruling 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 | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Plans | 1 7 . Share-Based Compensation Plans The fair value method of accounting recognizes share-based compensation to employees and non-employee directors in the consolidated statements of operations using the grant-date fair value of the stock options and other equity-based compensation expensed over the requisite service and vesting period. For the purpose of determining the fair value of stock option awards, the Company uses the Black-Scholes option-pricing model. The Company elected a policy to accrue for compensation cost based on the number of awards that are expected to vest. An estimation of forfeitures is required when recognizing compensation expense which is then adjusted over the requisite service period should actual forfeitures differ from such estimates. Changes in estimated forfeitures are recognized through a cumulative adjustment to compensation in the period of change. Excess tax benefits and tax deficiencies associated with share-based payment awards are required to be recognized as an income tax benefit or expense in net income (loss) with the corresponding cash flows recognized as an operating activity in the Consolidated Statement of Cash Flow. 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 Award activity for stock options granted under the Plan and the weighted average exercise price per share are summarized as follows: Time-Based Options Performance- Based Options Total Options Weighted Average Exercise Price Per Share Options outstanding at January 1, 2018 300,000 300,000 (1) 600,000 $ 25.13 Options issued 300,000 — 300,000 50.00 Options forfeited — (100,000 ) (100,000 ) 38.43 Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2018 600,000 200,000 800,000 35.06 Options issued — — — — Options forfeited — — — — Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2019 600,000 200,000 800,000 35.06 Options issued 300,000 — 300,000 52.79 Options forfeited — (100,000 ) (100,000 ) 38.43 Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2020 900,000 100,000 1,000,000 $ 40.04 Options exercisable at December 31, 2020 600,000 100,000 700,000 $ 34.58 (1) In 2014, 300,000 performance-based options were granted. On March 6, 2018, the existing vesting provisions of these options were eliminated and replaced with new vesting provisions related to return on equity targets for 2018, 2019, and 2020 (“Bonus Years”). Return on equity targets for the 2018 and 2020 bonus years were not met. As a result, 100,000 performance-based options related to the 2018 bonus year and 100,000 performance-based options related to the 2020 bonus year were forfeited. 100,000 performance-based options remain outstanding. The remaining 100,000 performance-based options, which were related to return on equity targets for the 2019 bonus year, vested on December 31, 2019. These options are subject to remeasurement of 2019 bonus year results after the third full calendar year following the bonus year. The Company awarded 300,000 time-based options in each of the years ended December 31, 2020 and 2018 with an average strike price of $52.79 and $50.00, respectively. There were no stock options granted in 2019. The Company recorded $1.6 million, $ 1.1 million, and $0.3 million of compensation expense for stock options under the Plan during the years ended December 31, 2020, 2019, and 2018, respectively. The Company did not receive any proceeds from the exercise of options during 2020, 2019 or 2018 under the Plan. Option intrinsic values, which are the differences between the fair value of $28.59 at December 31, 2020 and the strike price of the option, are as follows: Number of Shares Weighted Average Strike Price Intrinsic Value Outstanding 1,000,000 40.04 $3.2 Million Exercisable 700,000 34.58 $3.2 Million Exercised (1) — — — (1) The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. The options exercisable at December 31, 2020 include the following: Option Price Number of options exercisable $ 17.87 300,000 $ 38.43 (1) 100,000 $ 50.00 300,000 Options exercisable at December 31, 2020 700,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. There were no options granted under the Plan in 2019. The weighted average fair value of options granted under the Plan was $1.92 in 2020 and $3.79 in 2018 using a Black-Scholes option-pricing model and the following weighted average assumptions. 2020 2018 Dividend yield 2.0% 2.0% Expected volatility 38.32% 22.47% Risk-free interest rate 0.4% 2.0% Expected option life 3.5 years 3.3 years The following tables summarize the range of exercise prices of options outstanding at December 31, 2020, 2019, and 2018: Ranges of Exercise Prices Outstanding at December 31, 2020 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $ 17.87 0.7 years $30.00 — $38.43 100,000 (1) $ 38.43 4.0 years $49.62 — $59.99 600,000 $ 51.40 8.5 years Total 1,000,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. Ranges of Exercise Prices Outstanding at December 31, 2019 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $ 17.87 1.7 years $30.00 — $38.43 200,000 (1) $ 38.43 5.0 years $50.00 — $59.99 300,000 $ 50.00 8.0 years Total 800,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. Ranges of Exercise Prices Outstanding at December 31, 2018 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $ 17.87 2.7 years $30.00 — $38.43 200,000 (1) $ 38.43 6.0 years $50.00 — $59.99 300,000 $ 50.00 9.0 years Total 800,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. Restricted Shares / Restricted Stock Units In addition to stock option grants, the Plan also provides for the granting of restricted shares and restricted stock units to employees and non-employee Directors. The Company recognized compensation expense for restricted stock of $3.2 million, $2.8 million and $3.1 million for 2020, 2019, and 2018, respectively. The total unrecognized compensation expense for the non-vested restricted stock is $0.2 million at December 31, 2020, which will be recognized over a weighted average life of 1.0 years. The Company recognized compensation expense for restricted stock units of $3.2 million and $0.4 million for 2020 and 2019, respectively. There was no compensation expense for restricted stock units in 2018. The total unrecognized compensation expense for the non-vested restricted stock units is $4.7 million at December 31, 2020, which will be recognized over a weighted average life of 1.8 years. The following table summarizes the restricted stock grants since the 2003 inception of the original share incentive plan: Restricted Stock Awards Year Employees Directors Total Inception through 2017 1,089,118 540,515 1,629,633 2018 38,778 31,646 70,424 2019 43,680 66,919 110,599 2020 — 108,521 108,521 1,171,576 747,601 1,919,177 The following table summarizes the restricted stock unit grants since the 2003 inception of the original share incentive plan: Restricted Stock Unit Awards Year Employees Directors Total Inception through 2018 — — — 2019 175,498 — 175,498 2020 161,238 41,667 202,905 336,736 41,667 378,403 The following table summarizes the non-vested restricted shares activity for the years ended December 31, 2020, 2019, and 2018: Number of Shares Weighted Average Price Per Share Non-vested Restricted Shares at January 1, 2018 212,812 29.67 Shares issued 70,424 38.85 Shares vested (166,117 ) 30.88 Shares forfeited (3,255 ) 28.91 Non-vested Restricted Shares at December 31, 2018 113,864 33.61 Shares issued 110,599 30.93 Shares vested (150,395 ) 29.86 Shares forfeited (11,828 ) 38.42 Non-vested Restricted Shares at December 31, 2019 62,240 37.00 Shares issued 108,521 24.86 Shares vested (128,623 ) 26.84 Shares forfeited (6,735 ) 27.74 Non-vested Restricted Shares at December 31, 2020 35,403 $ 38.45 The following table summarizes the non-vested restricted stock units activity for the years ended December 31, 2020, 2019, and 2018: Number of Restricted Stock Units Weighted Average Price Per Restricted Stock Unit Non-vested Restricted Stock Units at January 1, 2018 — $ — Restricted Stock Units issued — — Restricted Stock Units vested — — Restricted Stock Units forfeited — — Non-vested Restricted Stock Units at December 31, 2018 — $ — Restricted Stock Units issued 175,498 30.18 Restricted Stock Units vested — — Restricted Stock Units forfeited — — Non-vested Restricted Stock Units at December 31, 2019 175,498 $ 30.18 Restricted Stock Units issued 202,905 29.02 Restricted Stock Units vested (41,667 ) 24.00 Restricted Stock Units forfeited (21,710 ) 30.06 Non-vested Restricted Stock Units at December 31, 2020 315,026 $ 30.26 Based on the terms of the restricted share and restricted stock unit grants, all forfeited shares revert back to the Company. During 2018, the Company granted 38,778 restricted class A common shares, with a weighted average grant date value of $40.57 per share, to key employees under the Plan. 11,843 of these shares vested immediately. The remainder will vest as follows: • 16.5 • Subject to Board approval, 50% of granted restricted stock will vests 100%, no later than March 15, 2021, following a re-measurement of 2017 results as of December 31, 2020. During 2018, the Company granted 31,646 restricted A common shares, at a weighted average grant date fair value of $36.74 per share, to non-employee directors of the Company under the Plan. During 2019, the Company granted 43,680 restricted A common shares, with a weighted average grant date value of $34.23 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 remeasurement of 2018 results as of December 31, 2021 Of the remaining 7,500 shares, 20% vested on August 26, 2020 and 20% will vest on August 26, 2021, August 26, 2022, August 26, 2023 and August 26, 2024. In addition, 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 2019, the Company granted 66,619 restricted A common shares at a weighted average grant date fair value of $28.77 per share, to non-employee directors of the Company under the plan. During 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. The Company did not grant any restricted class A common shares during 2020. During 2020, the Company granted 108,521 restricted A common shares at a weighted average grant date fair value of $24.86 per share, to non-employee directors of the Company under the plan. During 2020, the Company granted 41,667 restricted stock units at a weighted average grant date fair value of $24.00 per share, to a non-employee director of the Company under the plan. All of the shares and restricted stock units granted to non-employee directors in 2020, 2019, and 2018 were fully vested but subject to certain restrictions. Chief Executive Officer On March 6, 2018, the Company entered into a Chief Executive Agreement (the “Employment Agreement”) with Cynthia Y. Valko, the Company’s Chief Executive Officer. In accordance with the Employment Agreement, the vesting schedule for the 300,000 stock options issued in 2014 (“Tranche 2 Options”) was modified. 100,000 of the Tranche 2 Options were related to the attainment of Return on Equity criteria for 2018 and were scheduled to vest on December 31, 2018. These options were forfeited on December 31, 2018 because the Return on Equity criteria was not met. Tranche 2 Options were related to the attainment of Return on Equity criteria for 2020 and were scheduled to vest on December 31, 2020. These options were forfeited on December 31, 2020 because the Return on Equity criteria was not met. The remaining 100,000 options vested on December 31, 2019. These options are subject to remeasurement of 2019 bonus year results after the third full calendar year following the bonus year. Under the terms of the Employment Agreement, Ms. Valko was also granted an additional 300,000 Time-Based Options (“Tranche 3 Options”) with an exercise price of $50 per share. 100,000 of the Tranche 3 Options each vested on December 31, 2018, December 31, 2019, and December 31, 2020. Tranche 3 Options expire on the earlier of December 31, 2027 or 90 calendar days after Ms. Valko is neither employed by Global Indemnity nor a member of the Board of Directors. On December 10, 2020, the Company entered into a new Chief Executive Agreement (the “Chief Executive Agreement”) with Ms. Valko. The Chief Executive Agreement grants Ms. Valko 300,000 options (“Tranche 4 Options”) to buy Shares, which are in addition to the 900,000 stock options previously granted by the Company to Ms. Valko. 100,000 of the Tranche 4 Options shall have an exercise price equal to the greater of the book value per share of the Company’s Shares on December 31, 2020 and the closing per-share price of the Company’s shares on the last NASDAQ trading day prior to the effective date of the Chief Executive Agreement (“Tranche 4-I Options”). 100,000 of the Tranche 4 Options shall have an exercise price equal to the exercise price of the Tranche 4-I Options, plus $3.09 (“Tranche 4-II Options”). 100,000 of the Tranche 4 Options shall have an exercise price equal to the exercise price of the Tranche 4-II Options, plus $3.33 (“Tranche 4-III Options”). Tranche 4-I Options vest on the earlier of April 1, 2022 or the date a party that is not affiliated with Fox Paine & Company, LLC or Saul Fox acquires 50% or more of the Company’s voting shares (“Change in Control”). Tranche 4-II Options vest on the earlier of April 1, 2023 or a Change in Control. Tranche 4-III Options vest on the earlier of April 1, 2024 or a Change in Control. Vesting is contingent upon Ms. Valko being a Company employee in good standing as of the applicable vesting date. Tranche 4 Options may only be exercised if vested. Tranche 4 Options are subject to the terms of the Company’s stock option plans and ancillary agreements. Ms. Valko will also be granted fully vested and exercisable options to acquire 300,000 Shares (“Tranche 5 Options”) on September 20, 2021, regardless of whether Ms. Valko is employed by the Company on such date. Tranche 5 Options shall have an exercise price equal to the greater of $17.87 and the closing per-share price of the Shares on the date of grant. Tranche 5 Options are subject to the terms of the Company’s stock option plans and ancillary agreements. In January, 2021, Ms. Valko announced her retirement effective January 31, 2021. Corporate expenses includes $1.3 million related to extending the time to exercise existing options and for the accrual of Tranche 5 options. See Note 25 for additional information regarding Ms. Valko’s retirement. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2020 | |
Postemployment Benefits [Abstract] | |
401(k) Plan | 18 . 401(k) Plan The Company maintains a 401(k) defined contribution plan that covers all eligible U.S. employees. Under this plan, the Company matches 100% of the first 6% contributed by an employee. Vesting on contributions made by the Company is immediate. Total expenses for the plan were $1.9 million for each of the years ended December 31, 2020, 2019, and 2018. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 19 . 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. The following table sets forth the computation of basic and diluted earnings per share: Years Ended December 31, (Dollars in thousands, except share and per share data) 2020 2019 2018 Numerator: Net income (loss) $ (21,006 ) $ 70,015 $ (56,696 ) Less: preferred stock distributions 152 — — Net income (loss) available to common shareholders $ (21,158 ) $ 70,015 $ (56,696 ) Denominator: Weighted average shares for basic earnings per share 14,291,265 14,191,756 14,088,883 Non-vested restricted stock — 20,492 — Non-vested restricted stock units — 3,392 — Options — 119,066 — Weighted average shares for diluted earnings per share (1) 14,291,265 14,334,706 14,088,883 Earnings per share - Basic $ (1.48 ) $ 4.93 $ (4.02 ) Earnings per share - Diluted $ (1.48 ) $ 4.88 $ (4.02 ) (1) For the years ended December 31, 2020 and 2018, “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 years ended December 31, 2020 and 2018, 14,458,008 and 14,325,276 weighted average shares, respectively, would have been used to compute the diluted loss per share calculations. In addition to the basic shares, weighted average shares for the diluted calculations for the years ended December 31, 2020 and 2018 would have included 17,470 and 76,568 shares of non-vested restricted stock, respectively, 57,456 and 0 restricted stock units, respectively, and 91,816 and 159,825 share equivalents for options, respectively. The weighted average shares outstanding used to determine dilutive earnings per share for the year ended December 31, 2020 did not include 700,000 options and 66,957 restricted stock units which were deemed to be anti-dilutive. The weighted average shares outstanding used to determine dilutive earnings per share for the years ended December 31, 2019 and 2018 do not include 500,000 options which were deemed to be anti-dilutive. |
Statutory Financial Information
Statutory Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Statutory Financial Information | 20 . Statutory Financial Information GAAP differs in certain respects from Statutory Accounting Principles (“SAP”) as prescribed or permitted by the various U.S. state insurance departments. The principal differences between SAP and GAAP are as follows: • Under SAP, investments in debt securities are primarily carried at amortized cost, while under GAAP the Company records its debt securities at estimated fair value. • Under SAP, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under SAP, certain assets designated as "Non-admitted assets" (such as prepaid expenses) are charged against surplus. • Under SAP, net deferred income tax assets are admitted following the application of specified criteria, with the resulting admitted deferred tax amount being credited directly to surplus. • Under SAP, certain premium receivables are non-admitted and are charged against surplus based upon aging criteria. • Under SAP, the costs and related receivables for guaranty funds and other assessments are recorded based on management's estimate of the ultimate liability and related receivable settlement, while under GAAP such costs are accrued when the liability is probable and reasonably estimable and the related receivable amount is based on future premium collections or policy surcharges from in-force policies. • Under SAP, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. • Under SAP, a provision for reinsurance is charged to surplus based on the authorized status of reinsurers, available collateral, and certain aging criteria, whereas under GAAP, an allowance for uncollectible reinsurance is established based on management’s best estimate of the collectability of reinsurance receivables. • Under SAP, the tax impact of the Tax Cuts and Jobs Act enacted on December 22, 2017 is recorded through surplus, whereas under GAAP, the tax impact is recorded in the Consolidated Statements of Operations. The National Association of Insurance Commissioners (“NAIC”) issues model laws and regulations, many of which have been adopted by state insurance regulators, relating to: (a) risk-based capital ("RBC") standards; (b) codification of insurance accounting principles; (c) investment restrictions; and (d) restrictions on the ability of insurance companies to pay dividends. The Company’s insurance subsidiaries are required by law to maintain certain minimum surplus on a statutory basis, and are subject to regulations under which payment of a dividend from statutory surplus is restricted and may require prior approval of regulatory authorities. Applying the current regulatory restrictions as of December 31, 2020, the maximum amount of distributions that could be paid in 2021 by Penn-Patriot Insurance Company, the United National insurance companies, the Penn-America insurance companies, and American Reliable under applicable laws and regulations without regulatory approval is approximately $34.3 million, $17.4 million, $8.1 million, and $10.0 million, respectively. The Penn-America insurance companies limitation includes $2.7 million that would be distributed to United National Insurance Company or its subsidiary, Penn Independent Corporation, based on the December 31, 2020 ownership percentages. The Company’s insurance subsidiaries did not declare or pay any dividends in 2020. The NAIC's RBC model provides a tool for insurance regulators to determine the levels of statutory capital and surplus an insurer must maintain in relation to its insurance and investment risks, as well as its reinsurance exposures, to assess the potential need for regulatory attention. The model provides four levels of regulatory attention, varying with the ratio of an insurance company's total adjusted capital to its authorized control level RBC ("ACLRBC"). If a company’s total adjusted capital is: (a) less than or equal to 200%, but greater than 150% of its ACLRBC (the "Company Action Level"), the company must submit a comprehensive plan to the regulatory authority proposing corrective actions aimed at improving its capital position; (b) less than or equal to 150%, but greater than 100% of its ACLRBC (the "Regulatory Action Level"), the regulatory authority will perform a special examination of the company and issue an order specifying the corrective actions that must be followed; (c) less than or equal to 100%, but greater than 70% of its ACLRBC (the "Authorized Control Level"), the regulatory authority may take any action it deems necessary, including placing the company under regulatory control; and (d) less than or equal to 70% of its ACLRBC (the "Mandatory Control Level"), the regulatory authority must place the company under its control. Based on the standards currently adopted, the Company reported in its 2020 statutory filings that the capital and surplus of the insurance companies are above the prescribed Company Action Level RBC requirements. The following is selected information for the Company’s insurance companies, net of intercompany eliminations, where applicable, as determined in accordance with SAP: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Statutory capital and surplus, as of end of period $ 342,987 $ 263,793 $ 225,645 Statutory net income (loss) 73,655 39,971 (52,036 ) Prior to Global Indemnity Reinsurance’s merger into Penn-Patriot on August 28, 2020, Global Indemnity Reinsurance was required to also prepare annual statutory financial statements. The Bermuda Insurance Act 1978 (the “Insurance Act”) prescribes rules for the preparation and substance of these statutory financial statements which include, in statutory form, a balance sheet, an income statement, a statement of capital and surplus and notes thereto. The statutory financial statements are not prepared in accordance with GAAP or SAP and are distinct from the financial statements prepared for presentation to Global Indemnity Reinsurance's shareholders and under the Bermuda Companies Act 1981 (the “Companies Act”), which financial statements will be prepared in accordance with GAAP. The principal differences between statutory financial statements prepared under the Insurance Act and GAAP are as follows: • Under the Insurance Act, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under the Insurance Act, prepaid expenses and intangible assets are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis. • Under the Insurance Act, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. Under the Companies Act, Global Indemnity Reinsurance may only declare or pay a dividend if it has no reasonable grounds for believing that it is, or would after the payment be, unable to pay its liabilities as they become due, or if the realizable value of its assets would not be less than the aggregate of its liabilities and its issued share capital and share premium accounts. Global Indemnity Reinsurance is also prohibited, without the approval of the BMA, from reducing by 15% or more its total statutory capital or 25% or more of its total statutory capital and surplus as set out in its previous year’s statutory financial statements, and any application for such approval must include such information as the BMA may require. In June, 2020, Global Indemnity Reinsurance declared and paid a dividend of $226.0 million to its parent company, Global Indemnity Limited. On August 26, 2020, Global Indemnity Reinsurance merged into Penn-Patriot Insurance Company. The following is selected information for Global Indemnity Reinsurance, net of intercompany eliminations, where applicable, as determined in accordance with the Bermuda Insurance Act 1978: Years Ended December 31, (Dollars in thousands) 2019 2018 Statutory capital and surplus, as of end of period $ 885,763 $ 835,620 Statutory net income (loss) 34,086 (3,972 ) As a result of the merger, the Company no longer has any subsidiaries which are Bermuda licensed companies and is not required to prepare annual statutory financial statements in accordance with the Bermuda Insurance Act 1978 for 2020. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 21. During the 1st quarter of 2019, the Company re-evaluated its Personal Lines segment and determined that Personal Lines should be bifurcated into two reportable segments: Specialty Property and Farm, Ranch & Stable. In addition, the Company has changed the name of its Commercial Lines segment to Commercial Specialty to better align with its key product offerings. The segment results for the year ended December 31, 2018 have been revised to reflect these changes. Please see Note 1 for additional information related to these segment changes. All four segments follow the same accounting policies used for the Company’s consolidated financial statements. For further disclosure regarding the Company’s accounting policies, please see Note 3. 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 years ended December 31, 2020, 2019, and 2018. Corporate information is included to reconcile segment data to the consolidated financial statements. 2020: (Dollars in thousands) Commercial Specialty Specialty Property Farm, Ranch, & Stable Reinsurance Operations (1) Total Revenues: Gross written premiums $ 321,879 $ 138,401 (2) $ 85,646 $ 60,677 $ 606,603 Net written premiums $ 292,216 $ 121,111 $ 74,163 $ 60,677 $ 548,167 Net earned premiums $ 285,694 $ 131,474 $ 76,166 $ 74,365 $ 567,699 Other income — 1,705 142 191 2,038 Total revenues 285,694 133,179 76,308 74,556 569,737 Losses and Expenses: Net losses and loss adjustment expenses 155,271 94,540 47,151 39,239 336,201 Acquisition costs and other underwriting expenses 104,659 55,547 29,761 25,640 215,607 Income (loss) from segments $ 25,764 $ (16,908 ) $ (604 ) $ 9,677 17,929 Unallocated Items: Net investment income 28,392 Net realized investment losses (14,662 ) Other income 80 Corporate and other operating expenses (41,998 ) Interest expense (15,792 ) Loss on extinguishment of debt (3,060 ) Loss before income taxes (29,111 ) Income tax benefit 8,105 Net loss $ (21,006 ) Segment assets $ 850,813 $ 237,835 $ 152,037 $ 278,174 $ 1,518,859 Corporate assets 386,049 Total assets $ 1,904,908 (1) External business only, excluding business assumed from affiliates. (2) Includes less than $0.1 million of business written by American Reliable that was ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. 2019: (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 297,332 $ 163,503 (3) $ 87,745 $ 88,281 $ 636,861 Net written premiums $ 258,719 $ 140,670 $ 74,416 $ 88,284 $ 562,089 Net earned premiums $ 237,758 $ 140,232 $ 71,312 $ 75,960 $ 525,262 Other income (loss) — 1,820 132 (136 ) 1,816 Total revenues 237,758 142,052 71,444 75,824 527,078 Losses and Expenses: Net losses and loss adjustment expenses 108,911 75,426 42,700 48,365 275,402 Acquisition costs and other underwriting expenses 96,475 58,768 29,551 23,609 208,403 Income (loss) from segments $ 32,372 $ 7,858 $ (807 ) $ 3,850 43,273 Unallocated Items: Net investment income 42,052 Net realized investment gains 35,342 Corporate and other operating expenses (18,888 ) Interest expense (20,022 ) Income before income taxes 81,757 Income tax expense (11,742 ) Net income $ 70,015 Segment assets $ 713,010 $ 226,388 $ 136,891 $ 325,451 $ 1,401,740 Corporate assets 674,145 Total assets $ 2,075,885 (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. ( 3 ) Includes ($273) of business written by American Reliable that was ceded to insurance companies 2018: (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 249,948 $ 170,168 (6) $ 79,738 $ 48,043 $ 547,897 Net written premiums $ 226,827 $ 127,470 $ 70,217 $ 48,033 $ 472,547 Net earned premiums $ 218,357 $ 128,768 $ 69,248 $ 51,402 $ 467,775 Other income (loss) — 1,782 156 (210 ) 1,728 Total revenues 218,357 130,550 69,404 51,192 469,503 Losses and Expenses: Net losses and loss adjustment expenses 114,476 122,709 41,180 56,260 334,625 Acquisition costs and other underwriting expenses 87,371 (3) 55,760 (4) 29,801 (5) 17,846 190,778 Income (loss) from segments $ 16,510 $ (47,919 ) $ (1,577 ) $ (22,914 ) (55,900 ) Unallocated Items: Net investment income 46,342 Net realized investment losses (16,907 ) Corporate and other operating expenses (29,766 ) Interest expense (19,694 ) Loss before income taxes (75,925 ) Income tax benefit 19,229 Net loss $ (56,696 ) Segment assets $ 712,632 $ 270,083 $ 134,056 $ 316,922 $ 1,433,693 Corporate assets 526,573 Total assets $ 1,960,266 (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. (3) Includes federal excise tax of $386 relating to cessions from Commercial Specialty to Reinsurance Operations. (4) Includes federal excise tax of $313 relating to cessions from Specialty Property to Reinsurance Operations. (5) Includes federal excise tax of $145 relating to cessions from Farm, Ranch & Stable to Reinsurance Operations. ( 6 ) Includes ($2,062) of business written by American Reliable that was ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 22 . Supplemental Cash Flow Information Taxes and Interest Paid The Company paid the following net federal income taxes and interest for 2020, 2019, and 2018: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Federal income taxes paid $ 162 $ 251 $ 859 Federal income taxes recovered 10,987 170 — Interest paid 16,602 19,711 19,387 |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 2 3 . New Accounting Pronouncements Accounting Standards Adopted in 2020 In March 2020, the SEC amended Rule 3-10 of Regulation S-X regarding financial disclosure requirements for registered debt offerings involving subsidiaries as either issuers or guarantors and affiliates whose securities are pledged as collateral. This new guidance narrows the circumstances that require separate financial statements of subsidiary issuers and guarantors and streamlines the alternative disclosures required in lieu of those statements. This rule is effective January 4, 2021 with early adoption permitted. The Company adopted this new standard in the fourth quarter of 2020. Accordingly, summarized financial information has been presented only for the parent and subsidiary co-obligor of the Company’s registered debt securities for the most recent fiscal year. The location of the required disclosures has been moved outside the Notes to Consolidated Financial Statements and is provided in the “Liquidity and Capital Resources - Co-obligor Financial Information” section of “Management’s Discussion and Analysis of Results of Operations and Financial Condition’ in Item 7 of Part II of this report. 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 expected 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 expected 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. Recently Issued Accounting Guidance Not Yet Adopted In December, 2019, the FASB issued updated guidance related to the accounting for income taxes. The updated guidance is intended to simplify the accounting for income taxes by removing several exceptions contained in existing guidance and amending other existing guidance to simplify several other income tax accounting matters. The updated guidance is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The Company does not expect the adoption of this new accounting guidance to have a material impact on the Company’s financial condition, results of operations, or cash flows. |
Summary of Quarterly Financial
Summary of Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information (Unaudited) | 2 4 . Summary of Quarterly Financial Information (Unaudited) An unaudited summary of the Company’s 2020 and 2019 quarterly performance is as follows: Year Ended December 31, 2020 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net earned premiums $ 144,468 $ 141,847 $ 140,302 $ 141,082 Net investment income (loss) 10,129 (2,359 ) 11,746 8,876 Net realized investment gains (losses) (68,162 ) 38,507 7,323 7,670 Net losses and loss adjustment expenses 77,647 67,297 97,148 94,109 Acquisition costs and other underwriting expenses 56,412 53,578 53,268 52,349 Income (loss) before income taxes (56,547 ) 44,556 (18,379 ) 1,259 Net income (loss) available to common shareholders (44,578 ) 37,551 (15,212 ) 1,081 Per share data - Diluted: Net income (loss) available to common shareholders $ (3.13 ) $ 2.61 $ (1.06 ) $ 0.07 Year Ended December 31, 2019 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net earned premiums $ 122,089 $ 128,201 $ 133,312 $ 141,660 Net investment income 7,219 13,826 11,348 9,659 Net realized investment gains (losses) 10,390 3,590 (2,690 ) 24,052 Net losses and loss adjustment expenses 58,321 70,075 73,583 73,423 Acquisition costs and other underwriting expenses 49,743 50,534 53,366 54,760 Income before income taxes 23,894 15,849 6,404 35,610 Net income available to common shareholders 19,600 14,663 6,721 29,031 Per share data - Diluted: Net income available to common shareholders $ 1.37 $ 1.02 $ 0.47 $ 2.02 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 2 5 . Subsequent events Retirement of Chief Executive Officer On January 19, 2021, the Company announced that Ms. Valko informed the Board that she would retire effective as of January 31, 2021. In connection with her retirement, Ms. Valko has resigned from her positions as chief executive officer of Global Indemnity Group, LLC In connection with Ms. Valko’s retirement, the Company has entered into a separation agreement (the “Separation Agreement”) with Ms. Valko. Among other provisions, the Separation Agreement provides for (a) a severance payment of $675,000 to be paid ratably through December 2021, (b) preservation of all vested stock options held by Ms. Valko as of the date of her retirement to remain exercisable until the earlier of (i) 24 months from the date of Ms. Valko’s retirement or (ii) the expiration date of the applicable option, (c) forfeiture or continued vesting, as applicable, of unvested stock options held by Ms. Valko in accordance with their terms, with any such options that vest remaining exercisable for a period 24 to 38 months from the date of Ms. Valko’s retirement depending upon the vesting date, (d) the grant of 300,000 fully vested options as provided in Ms. Valko’s current employment agreement and (e) eligibility for an annual bonus for 2020 and true-up of bonus awards, based on a true-up of underwriting results for the applicable year, in the fourth calendar year following the applicable bonus award for all bonus years that remain open as of the date of retirement, including pro rata payment of bonus awards for January 2021. The receipt of the severance payment and the extension of the term of the stock options are subject to Ms. Valko’s execution of a general release in favor of the Company. The Separation Agreement also includes perpetual confidentiality and mutual non-disparagement provisions, and non-competition and employee and customer non-solicitation provisions effective until January 31, 2023. The foregoing description of the Separation Agreement is qualified in its entirety by the full text of the Separation Agreement, which is filed as Exhibit 10.21 in Item 15 of Part IV of this report. Effective as of January 19, 2021, the Company named Jonathan E. Oltman as president of the Company’s insurance operations. Mr. Oltman joined the Company in 2014, serving most recently as executive vice president – commercial lines since February 2019. Until Ms. Valko’s successor as chief executive officer of the Company is duly appointed, Mr. Oltman will act as Global Indemnity Group, LLC’s principal executive officer. Mr. Oltman will report directly to the Board through its chairman on a day-to-day basis. In connection with Mr. Oltman’s appointment, the Company and Mr. Oltman executed an agreement (the “Terms of Employment”) on January 19, 2021 setting forth the principal terms of Mr. Oltman’s employment with the Company. The Company expects to enter into definitive documentation with Mr. Oltman incorporating the provisions set forth in the Terms of Employment. The Terms of Employment provides for Mr. Oltman’s term of office as president of the Company’s insurance operations to run from January 19, 2021 through December 31, 2023. The Terms of Employment also provides for an annual base salary of $650,000 (“Base Salary”) and an annual bonus opportunity of $487,500 to $812,500 (the “Bonus Opportunity”), payable based on the achievement of certain underwriting results, as determined by the Board, for each year of Mr. Oltman’s term as president of the Company’s insurance operations, with 50% of the Bonus Opportunity payable in cash in the subsequent calendar year and 50% payable in Global Indemnity Group, LLC stock following a true-up of underwriting results for the applicable year in the fourth calendar year following the applicable bonus award. The Terms of Employment provides for a grant of 140,000 stock options to acquire Global Indemnity Group, LLC shares. One-third The Terms of Employment provides that the Company may terminate Mr. Oltman’s employment at any time for any reason. In the event of Mr. Oltman’s termination by the Company without “cause” (as defined in the Terms of Employment), Mr. Oltman will receive as severance an aggregate amount equal to the lesser of (i) one month of Base Salary for each 12 months of employment and (ii) the Base Salary otherwise payable between the termination date and December 31, 2023 (such Base Salary payments, the “Severance Amount”). Payment of the Severance Amount is contingent upon compliance with the terms in the Terms of Employment, including Mr. Oltman’s execution of and not revoking a general release of claims in favor of the Company. The Terms of Employment includes perpetual confidentiality and mutual non-disparagement provisions, and two-year The foregoing description of the Terms of Employment is qualified in its entirety by the full text of the Terms of Employment, which is filed as Exhibit 10.24 in Item 15 of Part IV of this report. Commitment In January, 2021, the Company entered into a $25 million commitment to purchase an alternative investment vehicle that invests in performing, stressed or distressed securities and loans across the global fixed income markets. Distribution On February 14, 2021, Global Indemnity Group, LLC’s Board of Directors approved a distribution payment of $0.25 per common share to be paid on March 31, 2021 to all shareholders of record as of the close of business on March 22, 2021. |
Summary of Investments - Other
Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Summary Of Investments Other Than Investments In Related Parties [Abstract] | |
Summary of Investments - Other Than Investments in Related Parties | GLOBAL INDEMNITY GROUP, LLC SCHEDULE I -- SUMMARY OF INVESTMENTS -- OTHER THAN INVESTMENTS IN RELATED PARTIES (In thousands) As of December 31, 2020 Cost * Value Amount Included in the Balance Sheet Type of Investment: Fixed maturities: United States government and government agencies and authorities $ 195,444 $ 197,480 $ 197,480 States, municipalities, and political subdivisions 58,140 61,243 61,243 Mortgage-backed and asset-backed securities 573,311 587,330 587,330 Public utilities 23,638 25,250 25,250 All other corporate bonds 298,476 319,883 319,883 Total fixed maturities 1,149,009 1,191,186 1,191,186 Equity securities: Public utilities — — — Industrial and miscellaneous 98,990 98,990 98,990 Total equity securities 98,990 98,990 98,990 Other long-term investments 97,018 97,018 97,018 Total investments $ 1,345,017 $ 1,387,194 $ 1,387,194 * Original cost of fixed maturities adjusted for amortization of premiums and accretion of discounts; original cost of equity securities and other long-term investments adjusted for income or loss earned on investments in accordance with equity method of accounting. All amounts are shown net of impairment losses. |
Condensed Financial Information
Condensed Financial Information of Registrant (Parent Only) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Registrant (Parent Only) | GLOBAL INDEMNITY GROUP, LLC SCHEDULE II – Condensed Financial Information of Registrant (Parent Only) Balance Sheets (Dollars in thousands, except share data) ASSETS December 31, 2020 Fixed maturities $ 86,434 Equity securities, at fair value 60,379 Other invested assets 60,000 Total investments 206,813 Cash and cash equivalents 1,402 Intercompany note receivable (1) 11,283 Interest receivable – affiliate 57 Equity in unconsolidated subsidiaries (1) 495,138 Receivable for securities 2 Other assets 6,569 Total assets $ 721,264 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Due to affiliates (1) $ 1,440 Other liabilities 1,500 Total liabilities 2,940 Commitments and contingencies — Shareholders’ equity: Series A cumulative fixed rate preferred shares, $1,000 par value; 100,000,000 shares authorized, shares issued and outstanding: 4,000 shares, liquidation preference: $1,000 per share 4,000 Common shares, par value: no par at December 31, 2020, 900,000,000 common shares authorized; class A common shares issued: 10,263,722; class A common shares outstanding: 10,263,722; class B common shares issued and outstanding: 4,133,366 — Additional paid-in capital 445,051 Accumulated other comprehensive income, net of tax 34,308 Retained earnings 234,965 Total shareholders' equity 718,324 Total liabilities and shareholders’ equity $ 721,264 (1) This item has been eliminated in the Company’s Consolidated Financial Statements. See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY LIMITED SCHEDULE II – Condensed Financial Information of Registrant (Parent Only) Balance Sheets (Dollars in thousands, except share data) ASSETS December 31, 2019 Fixed maturities $ 30,938 Other invested assets 13,530 Total investments 44,468 Cash and cash equivalents 977 Equity in unconsolidated subsidiaries (1) 1,218,491 Other assets 9,394 Total assets $ 1,273,330 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Due to affiliates (1) $ 3,612 Intercompany notes payable (1) 520,498 Interest payable - affiliates (1) 20,343 Other liabilities 2,068 Total liabilities 546,521 Commitments and contingencies — Shareholders’ equity: Common shares, $0.0001 par value: 900,000,000 common shares authorized; class A common shares issued: 10,282,277; class A common shares outstanding: 10,167,056; class B common shares issued and outstanding: 4,133,366 2 Preferred shares, $0.0001 par value, 100,000,000 shares authorized, none issued and outstanding — Additional paid-in capital 442,403 Accumulated other comprehensive income, net of tax 17,609 Retained earnings 270,768 Class A common shares in treasury, at cost: 115,221 shares (3,973 ) Total shareholders' equity 726,809 Total liabilities and shareholders’ equity $ 1,273,330 (1) This item has been eliminated in the Company’s Consolidated Financial Statements. GLOBAL INDEMNITY GROUP, LLC SCHEDULE II – Condensed Financial Information of Registrant (continued) (Parent Only) Statement of Operations and Comprehensive Income (Dollars in thousands) Year Ended December 31, 2020 (1) Revenues: Net investment income $ 2,876 Intercompany interest income (2) 57 Net realized investment losses (1,444 ) Other income 1 Total revenues 1,490 Expenses: Intercompany interest expense (2) 550 Interest expense 218 Corporate and other operating expenses 23,641 Loss on extinguishment of debt 3,060 Loss before equity in earnings of unconsolidated subsidiaries (25,979 ) Equity in earnings of unconsolidated subsidiaries (2) 4,973 Net loss (21,006 ) Other comprehensive income (loss), net of tax: Unrealized holdings losses arising during the period (4,581 ) Equity in other comprehensive loss of unconsolidated subsidiaries (2) 21,657 Recognition of previously unrealized holding gains (377 ) Other comprehensive income, net of tax 16,699 Comprehensive loss, net of tax $ (4,307 ) (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 December 31, 2020 (2) This item has been eliminated in the Company’s Consolidated Financial Statements. See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY LIMITED SCHEDULE II – Condensed Financial Information of Registrant (continued) (Parent Only) Statement of Operations and Comprehensive Income (Dollars in thousands) Years Ended December 31, 2019 2018 Revenues: Net investment income $ 2,295 $ 658 Net realized investment gain (losses) 574 (154 ) Total revenues 2,869 504 Expenses: Intercompany interest expense (1) 844 7,034 Interest expense 264 5,960 Other expenses 6,692 11,317 Loss before equity in earnings of unconsolidated subsidiaries (4,931 ) (23,807 ) Equity in earnings of unconsolidated subsidiaries (1) 74,946 (32,889 ) Net income (loss) 70,015 (56,696 ) Other comprehensive income (loss), net of tax: Unrealized holding gains (losses) 872 (499 ) Equity in other comprehensive income (loss) of unconsolidated subsidiaries (1) 38,520 (19,841 ) Reclassification adjustment for (gains) losses included in net income (loss) (552 ) 154 Other comprehensive income (loss), net of tax 38,840 (20,186 ) Comprehensive income (loss), net of tax $ 108,855 $ (76,882 ) (1) This item has been eliminated in the Company’s Consolidated Financial Statements. See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY GROUP, LLC Condensed Financial Information of Registrant – (continued) (Parent Only) Statements of Cash Flows (Dollars in thousands) Year Ended December 31, 2020 (1) Net cash used in operating activities $ (23,602 ) Cash flows from investing activities: Proceeds from sale of fixed maturities 126,834 Proceeds from sale of equity securities 137,533 Proceeds from maturity of fixed maturities 423 Proceeds from other invested assets 1,700 Purchases of fixed maturities (202,664 ) Purchases of equity securities (168,795 ) Purchases of other invested assets (60,000 ) Net cash used in investing activities (164,969 ) Cash flows from financing activities: Distributions paid to common shareholders (14,252 ) Distributions paid to preferred shareholders (133 ) Issuance of series A cumulative fixed rate preferred shares 4,000 Dividends from subsidiaries 226,000 Capital contribution (26,466 ) Purchase of class A common shares (153 ) Net cash provided by financing activities 188,996 Net change in cash and equivalents 425 Cash and cash equivalents at beginning of period 977 Cash and cash equivalents at end of period $ 1,402 (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 December 31, 2020 See Notes to Consolidated Financial Statements included in Item 8. GLOBAL INDEMNITY LIMITED SCHEDULE II – Condensed Financial Information of Registrant – (continued) (Parent Only) Statements of Cash Flows (Dollars in thousands) Years Ended December 31, 2019 2018 Net cash provided by (used in) operating activities $ 2,632 $ (20,178 ) Cash flows from investing activities: Proceeds from sale of fixed maturities 48,393 32,980 Proceeds from sale of equity securities 10,900 — Proceeds from maturity of fixed maturities — 5,431 Proceeds from other invested assets 4,363 1,500 Purchase of fixed maturities (10,548 ) (33,327 ) Purchase of equity securities (41,815 ) — Net cash provided by investing activities 11,293 6,584 Cash flows from financing activities: Proceeds from notes to affiliates — 230,000 Debt restructuring — (230,000 ) Dividends paid to shareholders (14,222 ) (14,027 ) Dividends from subsidiaries — 20,620 Purchase of class A common shares (947 ) (1,867 ) Net cash provided by (used in) financing activities (15,169 ) 4,726 Net change in cash and equivalents (1,244 ) (8,868 ) Cash and cash equivalents at beginning of period 2,221 11,089 Cash and cash equivalents at end of period $ 977 $ 2,221 See Notes to Consolidated Financial Statements included in Item 8. |
Supplementary Insurance Informa
Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | GLOBAL INDEMNITY GROUP, LLC SCHEDULE III -- SUPPLEMENTARY INSURANCE INFORMATION (Dollars in thousands) Segment Deferred Policy Acquisition Costs Future Policy Benefits, Losses, Claims And Loss Expenses Unearned Premiums Other Policy and Benefits Payable At December 31, 2020: Commercial Specialty $ 29,033 $ 424,994 $ 139,016 $ — Specialty Property 14,682 45,268 69,211 — Farm, Ranch & Stable 8,786 44,841 42,499 — Reinsurance Operations 12,694 147,708 40,769 — At December 31, 2019: Commercial Specialty $ 27,415 $ 390,148 $ 134,433 $ — Specialty Property 18,249 50,334 81,922 — Farm, Ranch & Stable 9,612 45,601 44,048 — Reinsurance Operations 15,401 144,098 54,458 — At December 31, 2018: Commercial Specialty $ 23,059 $ 417,175 $ 110,704 $ — Specialty Property 18,161 82,722 88,809 — Farm, Ranch & Stable 8,897 50,923 40,265 — Reinsurance Operations 11,559 129,211 42,134 — Segment Premium Revenue Benefits, Claims, Losses And Settlement Expenses Amortization of Deferred Policy Acquisition Costs Net Written Premium For the year ended December 31, 2020: Commercial Specialty $ 285,694 $ 155,271 $ 65,406 $ 292,216 Specialty Property 131,474 94,540 33,835 121,111 Farm, Ranch & Stable 76,166 47,151 18,473 74,163 Reinsurance Operations 74,365 39,239 23,201 60,677 Total $ 567,699 $ 336,201 $ 140,915 $ 548,167 For the year ended December 31, 2019: Commercial Specialty $ 237,758 $ 108,911 $ 56,339 $ 258,719 Specialty Property 140,232 75,426 37,811 140,670 Farm, Ranch & Stable 71,312 42,700 18,307 74,416 Reinsurance Operations 75,960 48,365 19,872 88,284 Total $ 525,262 $ 275,402 $ 132,329 $ 562,089 For the year ended December 31, 2018: Commercial Specialty $ 218,357 $ 114,476 $ 49,715 $ 226,827 Specialty Property 128,768 122,709 37,854 127,470 Farm, Ranch & Stable 69,248 41,180 17,536 70,217 Reinsurance Operations 51,402 56,260 12,883 48,033 Total $ 467,775 $ 334,625 $ 117,988 $ 472,547 Unallocated Corporate Items Net Investment Income Corporate and Other Operating Expenses For the year ended December 31, 2020: $ 28,392 $ 41,998 For the year ended December 31, 2019: 42,052 18,888 For the year ended December 31, 2018: 46,342 29,766 |
Reinsurance Earned Premiums
Reinsurance Earned Premiums | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Schedule Of Reinsurance Premiums For Insurance Companies [Abstract] | |
Reinsurance Earned Premiums | GLOBAL INDEMNITY GROUP, LLC SCHEDULE IV -- REINSURANCE EARNED PREMIUMS (Dollars in thousands) Direct Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net For the year ended December 31, 2020: Property & Liability Insurance $ 560,658 $ 62,271 $ 69,312 $ 567,699 12.2% For the year ended December 31, 2019: Property & Liability Insurance $ 527,018 $ 78,649 $ 76,893 $ 525,262 14.6% For the year ended December 31, 2018: Property & Liability Insurance $ 483,229 $ 83,610 $ 68,156 $ 467,775 14.6% |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves | GLOBAL INDEMNITY GROUP, LLC SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Dollars in thousands) Description Balance at Beginning of Period Charged (Credited) to Costs and Expenses Charged (Credited) to Other Accounts Other Deductions Balance at End of Period For the year ended December 31, 2020: Investment asset valuation reserves: Mortgage loans $ — $ — $ — $ — $ — Real estate — — — — — Allowance for doubtful accounts: Premiums, accounts and notes receivable $ 2,754 $ 146 $ — $ — $ 2,900 Deferred tax asset valuation allowance — — — — — Reinsurance receivables 8,992 — — — 8,992 For the year ended December 31, 2019: Investment asset valuation reserves: Mortgage loans $ — $ — $ — $ — $ — Real estate — — — — — Allowance for doubtful accounts: Premiums, accounts and notes receivable $ 2,272 $ 482 $ — $ — $ 2,754 Deferred tax asset valuation allowance — — — — — Reinsurance receivables 8,040 952 — — 8,992 For the year ended December 31, 2018: Investment asset valuation reserves: Mortgage loans $ — $ — $ — $ — $ — Real estate — — — — — Allowance for doubtful accounts: Premiums, accounts and notes receivable $ 2,179 $ 93 $ — $ — $ 2,272 Deferred tax asset valuation allowance — — — — — Reinsurance receivables 8,040 — — — 8,040 |
Supplementary Information For P
Supplementary Information For Property Casualty Underwriters | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | |
Supplementary Information For Property Casualty Underwriters | GLOBAL INDEMNITY GROUP, LLC SCHEDULE VI -- SUPPLEMENTARY INFORMATION FOR PROPERTY CASUALTY UNDERWRITERS (Dollars in thousands) Deferred Policy Acquisition Costs Reserves for Unpaid Claims and Claim Adjustment Expenses Discount If Any Deducted Unearned Premiums Consolidated Property & Casualty Entities: As of December 31, 2020 $ 65,195 $ 662,811 $ — $ 291,495 As of December 31, 2019 70,677 630,181 400 314,861 As of December 31, 2018 61,676 680,031 800 281,912 Earned Net Investment Claims and Claim Adjustment Expense Incurred Related To Amortization Of Deferred Policy Paid Claims and Claim Adjustment Premiums Premiums Income Current Year Prior Year Acquisition Costs Expenses Written Consolidated Property & Casualty Entities: For the year ended December 31, 2020: $ 567,699 $ 28,392 $ 367,739 $ (31,538 ) $ 140,908 $ 309,456 $ 548,167 For the year ended December 31, 2019: 525,262 42,052 308,211 (32,809 ) 132,329 292,183 562,089 For the year ended December 31, 2018: 467,775 46,342 363,423 (28,798 ) 117,988 301,357 472,547 Note: All of the Company's insurance subsidiaries are 100% owned and consolidated. |
Principles of Consolidation a_2
Principles of Consolidation and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Business Segments | During the first quarter of 2019, the Company re-evaluated its Personal Lines segment and determined that Personal Lines should be bifurcated into two reportable segments: Specialty Property and Farm, Ranch & Stable. This is the result of changing how Specialty Property and Farm, Ranch & Stable are managed and reported. Specialty Property is managed out of the Company’s Scottsdale, Arizona office; whereas, Farm, Ranch & Stable is managed out of the Company’s Omaha, Nebraska office. In the past, Farm, Ranch & Stable reported to the Scottsdale, Arizona office and now it reports directly to the Company’s main headquarters in Bala Cynwyd, Pennsylvania. Results for Specialty Property and Farm, Ranch & Stable are separately measured, resources are separately allocated to each of these lines, and employees in each line are now being rewarded based on each line’s separate results. Accordingly, the Company now reports Specialty Property and Farm, Ranch & Stable as two separate reportable segments. In addition, the Company has changed the name of its Commercial Lines segment to Commercial Specialty to better align with its key product offerings. The segment results for the year ended December 31, 2018 have been revised to reflect these changes. See Note 21 for additional information regarding 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 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. 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 Global Indemnity group of companies’ existing U.S. insurance company subsidiaries. The consolidated financial statements have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The consolidated financial statements include the accounts of Global Indemnity and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Intercompany Balances and Transactions | |
Investments | Investments The Company’s investments in fixed maturities, which are classified as available for sale, and equity securities are carried at their fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of the Company's fixed maturities and equity securities are determined on the basis of quoted market prices where available. If quoted market prices are not available, the Company uses third party pricing services to assist in determining fair value. In many instances, these services examine the pricing of similar instruments to estimate fair value. The Company purchases bonds with the expectation of holding them to their maturity; however, changes to the portfolio are sometimes required to assure it is appropriately matched to liabilities. In addition, changes in financial market conditions and tax considerations may cause the Company to sell an investment before it matures. The difference between amortized cost and fair value of the Company’s fixed maturity portfolio, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders’ equity and, accordingly, has no effect on net income (loss) other than for the credit loss component of impairments and losses recognized as a result of the intent to sell. Equity securities are measured at fair value with the changes in fair value recognized in net income (loss). For investments in limited partnerships and limited liability companies where the ownership interest is less than 3%, the Company carries these investments at fair value, and the change in the difference between cost and the fair value of these interests, net of the effect of deferred income taxes, is reflected in accumulated other comprehensive income in shareholders' equity and, accordingly, has no effect on net income (loss). The Company uses the equity method to account for investments in limited partnerships and limited liability companies where its ownership interest exceeds 3%. The equity method of accounting for an investment in a limited partnership and limited liability company requires that its cost basis be updated to account for the income or loss earned on the investment. The income or loss associated with the limited partnerships and limited liability companies is reflected in the consolidated statements of operations, and the adjusted cost basis approximates fair value. The Company’s investments in other invested assets were valued at $97.0 million and $47.3 million as of December 31, 2020 and 2019, respectively. These amounts relate to investments in limited partnerships and limited liability companies whose carrying value approximates fair value. Net realized gains and losses on investments are determined based on the first-in, first-out method. The Company implemented new accounting guidance on January 1, 2020 related to the measurement of expected credit losses on financial instruments. 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 (loss). Any impairments related to factors other than credit losses and the intent to sell continue to be recorded through other comprehensive income, net of taxes. 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 expected 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 and the intent to sell 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 expected 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 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 expected 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. |
Variable Interest Entities | Variable Interest Entities A Variable Interest Entity (“VIE”) refers to an investment in which an investor holds a controlling interest that is not based on the majority of voting rights. Under the VIE model, the party that has the power to exercise significant management influence and maintain a controlling financial interest in the entity’s economics is said to be the primary beneficiary, and is required to consolidate the entity within their results. Other entities that participate in a VIE, for which their financial interests fluctuate with changes in the fair value of the investment entity’s net assets but do not have significant management influence and the ability to direct the VIE’s significant economic activities are said to have a variable interest in the VIE but do not consolidate the VIE in their financial results. The Company has variable interests in four VIEs for which it is not the primary beneficiary. These investments are accounted for under the equity method of accounting as their ownership interest exceeds 3% of their respective investments. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purpose of the statements of cash flows, the Company considers all liquid instruments with an original maturity of three months or less to be cash equivalents. The Company has a cash management program that provides for the investment of excess cash balances primarily in short-term money market instruments. Generally, bank balances exceed federally insured limits. The carrying amount of cash and cash equivalents approximates fair value. At December 31, 2020 and 2019, the Company had approximately $58.0 million and $35.8 million, respectively, of cash and cash equivalents that was invested in a diversified portfolio of high quality short-term debt securities. |
Valuation of Premium Receivable | Valuation of Premium Receivable The Company evaluates the collectability of premium receivable based on a combination of factors. In instances in which the Company is aware of a specific circumstance where a party may be unable to meet its financial obligations to the Company, a specific allowance for expected credit losses against amounts due is recorded to reduce the net receivable to the amount reasonably believed by management to be collectible. For all remaining balances, 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. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company tests for impairment of goodwill at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of goodwill for impairment using both qualitative and quantitative factors. Impairment of goodwill is recognized only if the carrying amount of the reporting unit, including goodwill, exceeds the fair value of the reporting unit. The amount of the impairment loss would be equal to the excess carrying value of the goodwill over the implied fair value of the reporting unit goodwill. Based on the qualitative assessment performed, t of as of December 31, 2020. Impairment of intangible assets with an indefinite at least annually and more frequently as circumstances warrant here were no impairments Intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated useful lives. The carrying amounts of definite lived intangible assets are regularly reviewed for indicators of impairment in accordance with applicable accounting guidance. Impairment is recognized only if the carrying amount of the intangible asset is in excess of its undiscounted projected cash flows. The impairment is measured as the difference between the carrying amount and the estimated fair value of the asset. As of December 31, 2020, there were no triggering events that occurred during the year that would result in an impairment of definite lived intangible assets. See Note 7 for additional information on goodwill and intangible assets. |
Reinsurance | Reinsurance In the normal course of business, the Company seeks to reduce the loss that may arise from events that cause unfavorable underwriting results by reinsuring certain levels of risk from various areas of exposure with reinsurers. Amounts receivable from reinsurers are estimated in a manner consistent with the reinsured policy and the reinsurance contract. The Company regularly reviews the collectability of reinsurance receivables. An allowance for uncollectible reinsurance receivable is recognized based 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 AM Best Ratings and other relevant factors. Any changes in the allowance resulting from this review are included in net losses and loss adjustment expenses on the consolidated statements of operations during the period in which the determination is made. The allowance for expected credit losses w as $9.0 million as of December 31, 2020 and 2019 . The applicable accounting guidance requires that the reinsurer must assume significant insurance risk under the reinsured portions of the underlying insurance contracts and that there must be a reasonably possible chance that the reinsurer may realize a significant loss from the transaction. The Company has evaluated its reinsurance contracts and concluded that each contract qualifies for reinsurance accounting treatment pursuant to this guidance. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. The deferred tax asset balance is analyzed regularly by management. This assessment requires significant judgment and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of carryforward periods, and tax planning strategies and/or actions. Management believes that it is more likely than not that the results of future operations can generate sufficient taxable income to realize the remaining deferred income tax assets, and accordingly, the Company has not established any valuation allowances. |
Deferred Acquisition Costs | Deferred Acquisition Costs The costs of acquiring new and renewal insurance and reinsurance contracts include commissions, premium taxes and certain other costs that are directly related to the successful acquisition of new and renewal insurance and reinsurance contracts. The excess of the Company’s costs of acquiring new and renewal insurance and reinsurance contracts over the related ceding commissions earned from reinsurers is capitalized as deferred acquisition costs and amortized over the period in which the related premiums are earned. The amortization of deferred acquisition costs for the years ended December 31, 2020, 2019, and 2018 was $140.9 million, $132.3 million, and $118.0 million, respectively. |
Premium Deficiency | Premium Deficiency A premium deficiency is recognized if the sum of expected loss and loss adjustment expenses and unamortized acquisition costs exceeds related unearned premium after consideration of investment income. This evaluation is done at a distribution and product line level in Insurance Operations and at a treaty level in Reinsurance Operations. Any future expected loss on the related unearned premium is recorded first by impairing the unamortized acquisition costs on the related unearned premium followed by an increase to loss and loss adjustment expense reserves on additional expected loss in excess of unamortized acquisition costs. No premium deficiency reserve existed as of December 31, 2020 or 2019. |
Derivative Instruments | Derivative Instruments The Company uses derivative instruments to manage its exposure to cash flow variability from interest rate risk and limit exposure to severe equity market changes. The derivative instruments are carried on the balance sheet at fair value and included in other assets and other liabilities. Changes in the fair value of the derivative instruments and the periodic net interest settlements under the derivatives instruments are recognized as net realized investment gains (losses) on the consolidated statements of operations. 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. |
Margin Borrowing Facility | Margin Borrowing Facility The carrying amounts reported in the balance sheet represent the outstanding borrowings. The outstanding borrowings are due on demand; therefore, the cash receipts and cash payments related to the margin borrowing facility are shown net in the consolidated statements of cash flows. |
Subordinated Notes | Subordinated Notes The carrying amounts reported in the balance sheet represent the outstanding balances, net of deferred issuance cost. See Note 12 for details. |
Unpaid Losses and Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses The liability for unpaid losses and loss adjustment expenses represents the Company’s best estimate of future amounts needed to pay losses and related settlement expenses with respect to events insured by the Company. This liability is based upon the accumulation of individual case estimates for losses reported prior to the close of the accounting period with respect to direct business, estimates received from ceding companies with respect to assumed reinsurance, and estimates of unreported losses. The process of establishing the liability for unpaid losses and loss adjustment is complex, requiring the use of informed actuarially based estimates and management’s judgment. In some cases, significant periods of time, up to several years or more, may elapse between the occurrence of an insured loss and the reporting of that loss to the Company. To establish this liability, the Company regularly reviews and updates the methods of making such estimates and establishing the resulting liabilities. Any resulting adjustments are recorded in consolidated statements of operations during the period in which the determination is made. |
Retirement of Treasury Stock | Retirement of Treasury Stock Upon the formal retirement of treasury stock, Global Indemnity Group, LLC |
Share Redemptions | Share Redemptions When shares are redeemed, Global Indemnity Group, LLC offsets the par value of the redeemed shares against common shares and reflects any excess of cost over par value as a deduction from Retained Earnings. |
Premiums | Premiums Premiums are recognized as revenue ratably over the term of the respective policies and treaties. Unearned premiums are computed on a pro rata basis to the day of expiration. Mandatory reinstatement premiums assessed on reinsurance policies are earned in the period of the loss event that gave rise to the reinstatement premiums. |
Contingent Commissions | Contingent Commissions Certain professional general agencies of the Insurance Operations are paid special incentives, referred to as contingent commissions, when results of business produced by these agencies are more favorable than predetermined thresholds. Similarly, in some circumstances, companies that cede business to the Reinsurance Operations are paid profit commissions based on the profitability of the ceded portfolio. These commissions are charged to other underwriting expenses when incurred. |
Share-Based Compensation | Share-Based Compensation The Company accounts for stock options and other equity based compensation using the modified prospective application of the fair value-based method permitted by the appropriate accounting guidance. See Note 17 for details. |
Earnings per Share | Earnings per Share Basic earnings per share have been calculated by dividing net income (loss) available to common shareholders by the weighted-average common shares outstanding. In periods of net income, diluted earnings per share have been calculated by dividing net income available to common shareholders by the sum of the weighted-average common shares outstanding and the weighted-average common share equivalents outstanding, which include options and other equity awards. In periods of net loss, diluted earnings per share is the same as basic earnings per share. See Note 19 for details. Earnings per share have been computed using the weighted average number of common shares and common share equivalents outstanding during the period. |
Foreign Currency | Foreign Currency At times, the Company maintains investments and cash accounts in foreign currencies related to the operations of its business. At period-end, the Company re-measures non-U.S. currency financial assets to their current U.S. dollar equivalent. The resulting gain or loss for foreign denominated fixed maturity investments, if any, is reflected in accumulated other comprehensive income in shareholders’ equity; whereas, the gain or loss on foreign denominated cash accounts and equity securities is reflected in income during the period. Financial liabilities, if any, are generally adjusted within the reserving process. However, for known losses on claims to be paid in foreign currencies, the Company re-measures the liabilities to their current U.S. dollar equivalent each period end with the resulting gain or loss reflected in income during the period. Net transaction gains and losses, primarily comprised of re-measurement of known losses on claims to be paid in foreign currencies, were a gain |
Leases | Leases The Company determines if an arrangement is a lease at inception. Leases with a term of 12 months or less are not recorded on the consolidated balance sheets. Lease right-of-use assets (“ROU”) are included in other assets on the consolidated balance sheets and lease liabilities are included in other liabilities on the consolidated balance sheets. Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company’s leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate at the commencement date in determining the present value of future payments. The ROU asset is calculated using the initial lease liability amount, plus any lease payments made at or before the commencement date, minus any lease incentives received, plus any initial direct costs incurred. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. The Company’s lease agreements may contain both lease and non-lease components which are accounted separately. The Company elected the practical expedient on not separating lease components from non-lease components for its equipment leases. |
Other Income | Other Income Other income is primarily comprised of fee income and foreign exchange gains and losses. |
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 Company’s pricing vendors provide prices for all investment categories except for investments in limited liability companies and 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 collateralized 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 |
Tax Uncertainties | The Company applies a more-likely-than-not recognition threshold for all tax uncertainties whereby it only recognizes those tax benefits that have a greater than 50% likelihood of being sustained upon examination by relevant taxing authorities. |
Loss Reserves and Prior Year Development | When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates. |
Share-Based Compensation | The fair value method of accounting recognizes share-based compensation to employees and non-employee directors in the consolidated statements of operations using the grant-date fair value of the stock options and other equity-based compensation expensed over the requisite service and vesting period. For the purpose of determining the fair value of stock option awards, the Company uses the Black-Scholes option-pricing model. The Company elected a policy to accrue for compensation cost based on the number of awards that are expected to vest. An estimation of forfeitures is required when recognizing compensation expense which is then adjusted over the requisite service period should actual forfeitures differ from such estimates. Changes in estimated forfeitures are recognized through a cumulative adjustment to compensation in the period of change. Excess tax benefits and tax deficiencies associated with share-based payment awards are required to be recognized as an income tax benefit or expense in net income (loss) with the corresponding cash flows recognized as an operating activity in the Consolidated Statement of Cash Flow. |
Financial Information | GAAP differs in certain respects from Statutory Accounting Principles (“SAP”) as prescribed or permitted by the various U.S. state insurance departments. The principal differences between SAP and GAAP are as follows: • Under SAP, investments in debt securities are primarily carried at amortized cost, while under GAAP the Company records its debt securities at estimated fair value. • Under SAP, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under SAP, certain assets designated as "Non-admitted assets" (such as prepaid expenses) are charged against surplus. • Under SAP, net deferred income tax assets are admitted following the application of specified criteria, with the resulting admitted deferred tax amount being credited directly to surplus. • Under SAP, certain premium receivables are non-admitted and are charged against surplus based upon aging criteria. • Under SAP, the costs and related receivables for guaranty funds and other assessments are recorded based on management's estimate of the ultimate liability and related receivable settlement, while under GAAP such costs are accrued when the liability is probable and reasonably estimable and the related receivable amount is based on future premium collections or policy surcharges from in-force policies. • Under SAP, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. • Under SAP, a provision for reinsurance is charged to surplus based on the authorized status of reinsurers, available collateral, and certain aging criteria, whereas under GAAP, an allowance for uncollectible reinsurance is established based on management’s best estimate of the collectability of reinsurance receivables. • Under SAP, the tax impact of the Tax Cuts and Jobs Act enacted on December 22, 2017 is recorded through surplus, whereas under GAAP, the tax impact is recorded in the Consolidated Statements of Operations. |
Global Indemnity Reinsurance | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Financial Information | Prior to Global Indemnity Reinsurance’s merger into Penn-Patriot on August 28, 2020, Global Indemnity Reinsurance was required to also prepare annual statutory financial statements. The Bermuda Insurance Act 1978 (the “Insurance Act”) prescribes rules for the preparation and substance of these statutory financial statements which include, in statutory form, a balance sheet, an income statement, a statement of capital and surplus and notes thereto. The statutory financial statements are not prepared in accordance with GAAP or SAP and are distinct from the financial statements prepared for presentation to Global Indemnity Reinsurance's shareholders and under the Bermuda Companies Act 1981 (the “Companies Act”), which financial statements will be prepared in accordance with GAAP. The principal differences between statutory financial statements prepared under the Insurance Act and GAAP are as follows: • Under the Insurance Act, policy acquisition costs, such as commissions, premium taxes, fees and other costs of underwriting policies are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis over the period covered by the policy. • Under the Insurance Act, prepaid expenses and intangible assets are charged to current operations as incurred, while under GAAP such costs are deferred and amortized on a pro rata basis. • Under the Insurance Act, unpaid losses and loss adjustment expenses and unearned premiums are reported net of the effects of reinsurance transactions, whereas under GAAP, unpaid losses and loss adjustment expenses and unearned premiums are reported gross of reinsurance. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost and Estimated Fair Value of Company's Fixed Maturities Securities | The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of December 31, 2020 and 2019: (Dollars in thousands) Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of December 31, 2020 Fixed maturities: U.S. treasury and agency obligations $ 195,444 $ — $ 3,125 $ (1,089 ) $ 197,480 Obligations of states and political subdivisions 58,140 — 3,170 (67 ) 61,243 Mortgage-backed securities 351,453 — 7,876 (551 ) 358,778 Asset-backed securities 116,349 — 1,890 (646 ) 117,593 Commercial mortgage-backed securities 105,509 — 6,094 (644 ) 110,959 Corporate bonds 223,387 — 17,703 (373 ) 240,717 Foreign corporate bonds 98,727 — 5,716 (27 ) 104,416 Total fixed maturities $ 1,149,009 $ — $ 45,574 $ (3,397 ) $ 1,191,186 (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 December 31, 2020 and 2019, the Company’s investments in equity securities consist of the following: December 31, (Dollars in thousands) 2020 2019 Common stock $ 60,379 $ 135,329 Preferred stock 11,683 11,656 Index funds that invest in fixed maturities 26,928 54,648 Index funds that invest in common stock — 61,471 Total $ 98,990 $ 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 December 31, 2020, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Estimated Fair Value Due in one year or less $ 45,055 $ 45,346 Due in one year through five years 204,299 214,737 Due in five years through ten years 238,966 250,462 Due in ten years through fifteen years 23,682 25,349 Due after fifteen years 63,696 67,962 Mortgage-backed securities 351,453 358,778 Asset-backed securities 116,349 117,593 Commercial mortgage-backed securities 105,509 110,959 Total $ 1,149,009 $ 1,191,186 |
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 December 31, 2020. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 6. Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasury and agency obligations $ 81,999 $ (1,089 ) $ — $ — $ 81,999 $ (1,089 ) Obligations of states and political subdivisions 2,588 (67 ) — — 2,588 (67 ) Mortgage-backed securities 57,350 (551 ) 4 — 57,354 (551 ) Asset-backed securities 22,268 (389 ) 13,354 (257 ) 35,622 (646 ) Commercial mortgage-backed securities 10,294 (526 ) 1,154 (118 ) 11,448 (644 ) Corporate bonds 7,783 (373 ) — — 7,783 (373 ) Foreign corporate bonds 885 (27 ) — — 885 (27 ) Total fixed maturities $ 183,167 $ (3,022 ) $ 14,512 $ (375 ) $ 197,679 $ (3,397 ) 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 6. Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities: U.S. treasury and agency obligations $ 35,633 $ (797 ) $ — $ — $ 35,633 $ (797 ) Obligations of states and political subdivisions 27,180 (271 ) — — 27,180 (271 ) Mortgage-backed securities 93,579 (244 ) 902 (7 ) 94,481 (251 ) Asset-backed securities 43,402 (167 ) 16,152 (253 ) 59,554 (420 ) Commercial mortgage-backed securities 25,698 (196 ) 1,945 (13 ) 27,643 (209 ) Corporate bonds 19,407 (79 ) — — 19,407 (79 ) Foreign corporate bonds 4,822 (20 ) 2,035 (3 ) 6,857 (23 ) Total fixed maturities $ 249,721 $ (1,774 ) $ 21,034 $ (276 ) $ 270,755 $ (2,050 ) |
Schedule of Impairments on Investments | The Company recorded the following impairments on its investment portfolio for the years ended December 31, 2020, 2019 and 2018 and are related to securities in an unrealized loss position where the Company had an intent to sell the securities: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Fixed maturities: OTTI losses, gross $ — $ (1,897 ) $ (456 ) Impairment related to intent to sell (760 ) — — Total $ (760 ) $ (1,897 ) $ (456 ) |
Schedule of Credit Losses Recognized in Earnings | The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company as of December 31, 2019 and 2018 for which a portion of the OTTI loss was recognized in other comprehensive income. Years Ended December 31, (Dollars in thousands) 2019 2018 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 cash flows to be collected — — Reductions for securities sold during the period (13 ) — Balance at end of period $ — $ 13 |
Schedule of Accumulated Other Comprehensive Income, Net of Tax | Accumulated other comprehensive income, net of tax, as of December 31, 2020 and 2019 was as follows: December 31, (Dollars in thousands) 2020 2019 Net unrealized gains (losses) from: Fixed maturities $ 42,177 $ 21,591 Foreign currency fluctuations 161 (1,032 ) Deferred taxes (8,030 ) (2,950 ) Accumulated other comprehensive income, net of tax $ 34,308 $ 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 years ended December 31, 2020 and 2019: Year Ended December 31, 2020 (Dollars in thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ 18,641 $ (1,032 ) $ 17,609 Other comprehensive income (loss) before reclassification, before tax 43,430 1,193 44,623 Amounts reclassified from accumulated other comprehensive income (loss), before tax (22,844 ) — (22,844 ) Other comprehensive income (loss), before tax 20,586 1,193 21,779 Income tax benefit (expense) (5,046 ) (34 ) (5,080 ) Ending balance, net of tax $ 34,181 $ 127 $ 34,308 Year Ended December 31, 2019 (Dollars in thousands) Unrealized Gains and Losses on Available for Sale Securities Foreign Currency Items Accumulated Other Comprehensive Income Beginning balance, net of tax $ (19,897 ) $ (1,334 ) $ (21,231 ) Other comprehensive income (loss) before reclassification, before tax 50,325 302 50,627 Amounts reclassified from accumulated other comprehensive income (loss), before tax (6,059 ) — (6,059 ) Other comprehensive income (loss), before tax 44,266 302 44,568 Income tax benefit (expense) (5,728 ) — (5,728 ) Ending balance, net of tax $ 18,641 $ (1,032 ) $ 17,609 |
Reclassifications Out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive income for the years ended December 31, 2020 and 2019 were as follows: (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive Income Years Ended December 31, Details about Accumulated Other Comprehensive Income Components Affected Line Item in the Consolidated Statements of Operations 2020 2019 Unrealized gains and losses on available for sale securities Other net realized investment (gains) losses $ (23,604 ) $ (7,956 ) Other than temporary impairment losses on investments 760 1,897 Total before tax (22,844 ) (6,059 ) Income tax expense (benefit) 5,050 622 Unrealized gains and losses on available for sale securities, net of tax (17,794 ) (5,437 ) 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 $ (17,794 ) $ (5,437 ) |
Components of Net Realized Investment Gains (Losses) | The components of net realized investment gains (losses) for the years ended December 31, 2020, 2019, and 2018 were as follows: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Fixed maturities: Gross realized gains $ 28,381 $ 9,675 $ 354 Gross realized losses (5,537 ) (3,616 ) (3,277 ) Net realized gains (losses) 22,844 6,059 (2,923 ) Equity Securities: Gross realized gains 16,997 40,730 6,491 Gross realized losses (32,247 ) (6,737 ) (22,592 ) Net realized gains (losses) (15,250 ) 33,993 (16,101 ) Derivatives: Gross realized gains 19,460 3,518 3,906 Gross realized losses (41,716 ) (8,228 ) (1,789 ) Net realized gains (losses) (1) (22,256 ) (4,710 ) 2,117 Total net realized investment gains (losses) $ (14,662 ) $ 35,342 $ (16,907 ) (1) Includes periodic net interest settlements related to the derivatives of $4.5 |
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 December 31, 2020, 2019, and 2018: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Net gains and (losses) recognized during the period on equity securities $ (15,250 ) $ 33,993 $ (16,101 ) Less: net gains (losses) recognized during the period on equity securities sold during the period (103 ) 10,846 5,921 Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date $ (15,147 ) $ 23,147 $ (22,022 ) |
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 years ended December 31, 2020, 2019, and 2018 were as follows: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Fixed maturities $ 791,554 $ 977,321 $ 293,348 Equity securities 604,772 260,891 35,639 |
Schedule of Investment Income | The sources of net investment income for the years ended December 31, 2020, 2019, and 2018 were as follows: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Fixed maturities $ 31,987 $ 36,673 $ 37,085 Equity securities 4,944 7,006 4,037 Cash and cash equivalents 784 1,510 1,177 Other invested assets (6,228 ) 78 6,879 Total investment income 31,487 45,267 49,178 Investment expense (3,095 ) (3,215 ) (2,836 ) Net investment income $ 28,392 $ 42,052 $ 46,342 |
Schedule of Total Investment Return | The Company’s total investment return on a pre-tax basis for the years ended December 31, 2020, 2019, and 2018 were as follows: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Net investment income $ 28,392 $ 42,052 $ 46,342 Net realized investment gains (losses) (14,662 ) 35,342 (16,907 ) Change in unrealized holding gains and losses 21,779 44,568 (22,853 ) Net realized and unrealized investment returns 7,117 79,910 (39,760 ) Total investment return $ 35,509 $ 121,962 $ 6,582 Total investment return % 2.3 % 7.8 % 0.4 % Average investment portfolio $ 1,528,425 $ 1,558,565 $ 1,522,805 |
Summary of Estimated Fair Values of Bonds Held on Deposit | The fair values were as follows as of December 31, 2020 and 2019: Estimated Fair Value (Dollars in thousands) December 31, 2020 December 31, 2019 On deposit with governmental authorities $ 26,966 $ 26,431 Intercompany trusts held for the benefit of U.S. policyholders — 179,116 Held in trust pursuant to third party requirements 100,234 133,122 Letter of credit held for third party requirements 3,970 1,458 Securities held as collateral 494 91,229 Total $ 131,664 $ 431,356 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summarized Information on Location and Gross Amount of Derivatives on Consolidated Balance Sheets | The following table summarizes information on the location and the gross amount of the derivatives on the consolidated balance sheets as of December 31, 2020 and 2019: (Dollars in thousands) December 31, 2020 December 31, 2019 Derivatives Not Designated as Hedging Instruments under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value Interest rate swap agreements Other assets/liabilities $ 213,022 $ (16,430 ) $ 200,000 $ (10,275 ) Futures contracts on bonds (1) Other assets/liabilities 28,996 — 16,894 — Futures contracts on equities (1) Other assets/liabilities — — 57,816 — Total (2) $ 242,018 $ (16,430 ) $ 274,710 $ (10,275 ) (1) Futures are settled daily such that their fair value is not reflected in the consolidated statements of financial position (2) The derivatives are held by GBLI Holdings, LLC and are guaranteed by Global Indemnity Group, LLC |
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 years ended December 31, 2020, 2019, and 2018: Consolidated Statements of Years Ended December 31, (Dollars in thousands) Operations Line 2020 2019 2018 Interest rate swap agreements Net realized investment gains (losses) $ (10,691 ) $ (7,449 ) $ 2,117 Futures contracts on bonds Net realized investment gains (losses) (2,576 ) 873 — Futures contracts on equities Net realized investment gains (losses) (8,989 ) 1,866 — $ (22,256 ) $ (4,710 ) $ 2,117 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis | The following table presents information about the Company’s invested assets and derivative instruments measured at fair value on a recurring basis as of December 31, 2020 and 2019 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. As of December 31, 2020 Fair Value Measurements (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed maturities: U.S. treasury and agency obligations $ 197,480 $ — $ — $ 197,480 Obligations of states and political subdivisions — 61,243 — 61,243 Mortgage-backed securities — 358,778 — 358,778 Commercial mortgage-backed securities — 110,959 — 110,959 Asset-backed securities — 117,593 — 117,593 Corporate bonds — 240,717 — 240,717 Foreign corporate bonds — 104,416 — 104,416 Total fixed maturities 197,480 993,706 — 1,191,186 Equity securities 87,307 11,683 — 98,990 Total assets measured at fair value $ 284,787 $ 1,005,389 $ — $ 1,290,176 Liabilities: Derivative instruments $ — $ 16,430 $ — $ 16,430 Total liabilities measured at fair value $ — $ 16,430 $ — $ 16,430 As of December 31, 2019 Fair Value Measurements (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 December 31, 2020 and 2019 was as follows: December 31, 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) 126,288 132,008 126,147 134,462 Total $ 126,288 $ 132,008 $ 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 $3.1 million. In August 2020, the Company redeemed all of its outstanding 7.75% subordinated notes due 2045 and unamortized debt issuance cost of $3.1 million was written off and included in the consolidated statements of operations as loss on the extinguishment of debt. (3) As of December 31, 2020 and 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 December 31, 2020 and 2019. December 31, 2020 December 31, 2019 (Dollars in thousands) Fair Value Future Funding Commitment Fair Value Future Funding Commitment European Non-Performing Loan Fund, LP (1) $ 10,808 $ 14,214 $ 13,530 $ 14,214 Distressed Debt Fund, LP (2) 15,721 17,000 23,966 17,000 Mortgage Debt Fund, LP (3) 10,489 — 9,783 506 Credit Fund, LLC (4) 60,000 — — — Total $ 97,018 $ 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. (4) This limited liability company invests in a broad portfolio of non-investment grade loans, secured and unsecured corporate debt, credit default swaps, reverse repurchase agreements and synthetic indices. The Company does have the ability to sell its interest by providing notice to the fund. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible assets | The following table presents details of the Company’s intangible assets as of December 31, 2020: (Dollars in thousands) Description Weighted Average Amortization Period Cost Accumulated Amortization Net Value Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 3,784 1,516 Agent relationships 10 years 900 535 365 Tradenames 7 years 600 519 81 $ 25,800 $ 4,838 $ 20,962 The following table presents details of the Company’s intangible assets as of December 31, 2019: (Dollars in thousands) Description Weighted Average Amortization Period Cost Accumulated Amortization Net Value Trademarks Indefinite $ 4,800 $ — $ 4,800 Tradenames Indefinite 4,200 — 4,200 State insurance licenses Indefinite 10,000 — 10,000 Customer relationships 15 years 5,300 3,430 1,870 Agent relationships 10 years 900 444 456 Tradenames 7 years 600 435 165 $ 25,800 $ 4,309 $ 21,491 |
Expected Amortization Expense | The Company expects that amortization expense for the next five years will be as follows: (Dollars in thousands) 2021 $ 524 2022 443 2023 443 2024 443 2025 108 |
Allowance for Expected Credit_2
Allowance for Expected Credit Losses - Premiums Receivable and Reinsurance Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Allowance For Credit Loss [Abstract] | |
Schedule of Allowance for Expected Credit Losses Related to Premiums Receivable and Reinsurance Receivables | The following table is an analysis of the allowance for expected credit losses related to the Company's premiums receivable and reinsurance receivables for the year ended December 31, 2020: December 31, 2020 (Dollars in thousands) Premiums Receivable Reinsurance Receivables Beginning balance $ 2,754 $ 8,992 Current period provision for expected credit losses 1,050 — Write-offs (904 ) — Ending balance $ 2,900 $ 8,992 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Components of Reinsurance Balances | The Company had the following reinsurance balances as of December 31, 2020 and 2019: (Dollars in thousands) December 31, 2020 December 31, 2019 Reinsurance receivables, net $ 88,708 $ 83,938 Collateral securing reinsurance receivables (4,984 ) (3,802 ) Reinsurance receivables, net of collateral $ 83,724 $ 80,136 Allowance for uncollectible reinsurance receivables $ 8,992 $ 8,992 Prepaid reinsurance premiums 12,881 16,716 |
Unsecured Reinsurance Receivable that Exceeded Three Percent of Shareholders' Equity | Unsecured reinsurance receivables include amounts receivable for paid and unpaid losses and loss adjustment expenses, less amounts secured by collateral. (Dollars in thousands) Reinsurance Receivables AM Best Ratings (As of December 31, 2020) Munich Re America Corporation $ 44,785 A+ |
Effect of Reinsurance on Premiums Written and Earned | The effect of reinsurance on premiums written and earned is as follows: (Dollars in thousands) Written Earned For the year ended December 31, 2020: Direct business $ 554,617 $ 560,658 Reinsurance assumed 51,986 69,312 Reinsurance ceded (1) (58,436 ) (62,271 ) Net premiums $ 548,167 $ 567,699 For the year ended December 31, 2019: Direct business $ 548,618 $ 527,018 Reinsurance assumed 88,243 76,893 Reinsurance ceded (1) (74,772 ) (78,649 ) Net premiums $ 562,089 $ 525,262 For the year ended December 31, 2018: Direct business $ 495,129 $ 483,229 Reinsurance assumed 52,768 68,156 Reinsurance ceded (1) (75,350 ) (83,610 ) Net premiums $ 472,547 $ 467,775 (1) Includes ceded written premiums of less than $0.1 million, ($0.3) million, and ($2.1) million and ceded earned premiums of $1.6 million, $2.3 million and $7.3 million to American Bankers Insurance Company for the years ended December 31, 2020, 2019, and 2018, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) before Income Taxes from its Non-U.S. Subsidiaries and U.S. Subsidiaries | The Company’s income (loss) before income taxes from its non-U.S. subsidiaries and U.S. subsidiaries for the years ended December 31, 2020, 2019, and 2018 were as follows: Year Ended December 31, 2020 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 46,654 $ 559,949 $ — $ 606,603 Net written premiums $ 46,654 $ 501,513 $ — $ 548,167 Net earned premiums $ 53,384 $ 514,315 $ — $ 567,699 Net investment income 17,186 20,348 (9,142 ) 28,392 Net realized investment losses (3,867 ) (10,795 ) — (14,662 ) Other income 148 1,970 — 2,118 Total revenues 66,851 525,838 (9,142 ) 583,547 Losses and Expenses: Net losses and loss adjustment expenses 12,874 323,327 — 336,201 Acquisition costs and other underwriting expenses 17,827 197,780 — 215,607 Corporate and other operating expenses 23,357 18,641 — 41,998 Interest expense 869 24,065 (9,142 ) 15,792 Loss on extinguishment of debt 3,060 — — 3,060 Income (loss) before income taxes $ 8,864 $ (37,975 ) $ — $ (29,111 ) Year Ended December 31, 2019 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 88,282 $ 548,579 $ — $ 636,861 Net written premiums $ 88,285 $ 473,804 $ — $ 562,089 Net earned premiums $ 75,961 $ 449,301 $ — $ 525,262 Net investment income 29,307 26,816 (14,071 ) 42,052 Net realized investment gains 3,121 32,221 — 35,342 Other income (loss) (165 ) 1,981 — 1,816 Total revenues 108,224 510,319 (14,071 ) 604,472 Losses and Expenses: Net losses and loss adjustment expenses 36,502 238,900 — 275,402 Acquisition costs and other underwriting expenses 23,610 184,793 — 208,403 Corporate and other operating expenses 7,462 11,426 — 18,888 Interest expense 1,409 32,684 (14,071 ) 20,022 Income before income taxes $ 39,241 $ 42,516 $ — $ 81,757 Year Ended December 31, 2018 (Dollars in thousands) Non-U.S. Subsidiaries U.S. Subsidiaries Eliminations Total Revenues: Gross written premiums $ 48,050 $ 499,847 $ — $ 547,897 Net written premiums $ 48,041 $ 424,506 $ — $ 472,547 Net earned premiums $ 135,826 $ 331,949 $ — $ 467,775 Net investment income 49,699 27,294 (30,651 ) 46,342 Net realized investment losses (669 ) (16,238 ) — (16,907 ) Other income (losses) (210 ) 1,938 — 1,728 Total revenues 184,646 344,943 (30,651 ) 498,938 Losses and Expenses: Net losses and loss adjustment expenses 91,178 243,447 — 334,625 Acquisition costs and other underwriting expenses 57,487 133,291 — 190,778 Corporate and other operating expenses 12,234 17,532 — 29,766 Interest expense 7,108 43,237 (30,651 ) 19,694 Income (loss) before income taxes $ 16,639 $ (92,564 ) $ — $ (75,925 ) |
Components of Income Tax Expense (Benefit) | The following table summarizes the components of income tax expense (benefit): Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Current income tax expense (benefit): Foreign $ — $ (41 ) $ 325 U.S. Federal 163 — — Total current income tax expense (benefit) 163 (41 ) 325 Deferred income tax expense (benefit): U.S. Federal (8,268 ) 11,783 (19,554 ) Total deferred income tax expense (benefit) (8,268 ) 11,783 (19,554 ) Total income tax expense (benefit) $ (8,105 ) $ 11,742 $ (19,229 ) |
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: Years Ended December 31, 2020 2019 2018 (Dollars in thousands) Amount % of Pre- Tax Income Amount % of Pre- Tax Income Amount % of Pre- Tax Income Expected tax provision at weighted average $ (7,975 ) 27.4 % $ 8,928 10.9 % $ (19,112 ) 25.2 % Adjustments: Tax exempt interest (2 ) — (3 ) — (6 ) — Dividend exclusion (202 ) 0.7 (284 ) (0.3 ) (279 ) 0.4 Non-deductible interest 1,773 (6.1 ) 2,714 3.3 356 (0.5 ) Change in tax status (1,704 ) 5.8 — — — — Parent income treated as partnership for tax (533 ) 1.8 — — — — Other 538 (1.8 ) 387 0.5 (188 ) 0.2 Effective income tax expense (benefit) $ (8,105 ) 27.8 % $ 11,742 14.4 % $ (19,229 ) 25.3 % |
Tax Effects of Temporary Differences That Give Rise to Significant Portions of Net Deferred Tax Assets | The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at December 31, 2020 and 2019 are presented below: (Dollars in thousands) 2020 2019 Deferred tax assets: Discounted unpaid losses and loss adjustment expenses $ 7,490 $ 3,681 Unearned premiums 11,703 10,234 Section 163(j) carryforward 5,580 9,023 Net operating loss carryforward 26,220 21,871 Partnership K1 basis differences 796 1,703 Loss on derivative instruments 3,450 2,158 Investment impairments 147 1 Stock options 1,546 1,352 Stat-to-GAAP reinsurance reserve 1,517 874 Depreciation and amortization 863 — Other 1,860 1,840 Total deferred tax assets 61,172 52,737 Deferred tax liabilities: Intangible assets 4,505 3,112 Unrealized gain on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income 7,996 2,950 Unrealized gain on equity securities 182 3,438 Deferred acquisition costs 13,691 11,608 Depreciation and amortization — 436 Other 533 116 Total deferred tax liabilities 26,907 21,660 Total net deferred tax assets $ 34,265 $ 31,077 |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses | Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Balance at beginning of period $ 630,181 $ 680,031 $ 634,664 Less: Ceded reinsurance receivables 76,273 109,342 97,243 Net balance at beginning of period 553,908 570,689 537,421 Incurred losses and loss adjustment expenses related to: Current year 367,739 308,211 363,423 Prior years (31,538 ) (32,809 ) (28,798 ) Total incurred losses and loss adjustment expenses 336,201 275,402 334,625 Paid losses and loss adjustment expenses related to: Current year 183,109 146,128 173,545 Prior years 126,347 146,055 127,812 Total paid losses and loss adjustment expenses 309,456 292,183 301,357 Net balance at end of period 580,653 553,908 570,689 Plus: Ceded reinsurance receivables 82,158 76,273 109,342 Balance at end of period $ 662,811 $ 630,181 $ 680,031 |
Gross Reserves for Asbestos and Environmental Losses | The following table shows the Company’s gross reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Gross reserve for A&E losses and loss adjustment expenses – beginning of period $ 48,825 $ 50,445 $ 51,873 Plus: Change in incurred losses and loss adjustment expenses (259 ) (2 ) (1 ) Less: Payments 973 1,618 1,427 Gross reserves for A&E losses and loss adjustment expenses – end of period $ 47,593 $ 48,825 $ 50,445 |
Net Reserves for Asbestos and Environmental Losses | The following table shows the Company’s net reserves for A&E losses: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Net reserve for A&E losses and loss adjustment expenses – beginning of period $ 29,033 $ 29,524 $ 30,124 Plus: Change in incurred losses and loss adjustment expenses 1 (1 ) — Less: Payments 355 490 600 Net reserves for A&E losses and loss adjustment expenses – end of period $ 28,679 $ 29,033 $ 29,524 |
Incurred Claims Development | Commercial Specialty – Property (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2018 2019 2020 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) 2018 $ 60,555 $ 62,219 $ 66,925 $ 5,114 2,698 2019 54,853 54,974 2,543 2,903 2020 84,693 14,729 3,812 Total $ 206,592 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Commercial Specialty – Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2011 $ 115,441 $ 117,602 $ 117,288 $ 115,193 $ 108,720 $ 96,361 $ 84,269 $ 87,045 $ 83,825 $ 82,777 $ 3,163 3,895 2012 61,340 65,911 65,637 63,359 55,137 52,504 50,022 47,966 45,404 3,567 2,406 2013 63,807 68,089 67,702 66,301 64,877 61,487 58,756 56,696 2,248 2,555 2014 61,325 60,227 58,042 56,837 56,129 53,955 50,311 4,619 2,354 2015 57,262 56,620 57,775 58,392 59,568 55,821 5,233 2,112 2016 54,130 53,776 53,584 51,893 52,564 6,607 1,948 2017 54,338 54,572 53,385 54,227 8,316 1,854 2018 57,879 57,457 57,766 18,596 2,223 2019 68,952 68,938 33,346 2,340 2020 83,372 64,738 1,778 Total $ 607,876 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Specialty Property – Property (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2019 2020 IBNR (1) Cumulative Number of Reported Claims (unaudited) 2019 $ 79,798 $ 80,721 $ 2,722 10,379 2020 94,686 5,532 11,049 Total $ 175,407 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Specialty Property – Casualty (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2015 2016 2017 2018 2019 2020 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 6,875 $ 8,455 $ 11,230 $ 11,656 $ 11,412 $ 11,208 $ 793 857 2016 8,249 8,068 7,613 6,713 6,495 1,249 855 2017 7,213 6,966 7,515 7,366 932 506 2018 5,242 5,028 4,875 2,467 339 2019 3,986 3,948 2,170 282 2020 3,503 2,386 202 Total $ 37,395 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Farm, Ranch & Stable – Property (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2019 2020 IBNR (1) Cumulative Number of Reported Claims (unaudited) 2019 $ 37,120 $ 37,350 $ 1,406 3,023 2020 38,226 1,810 2,821 Total $ 75,576 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Farm, Ranch & Stable – Casualty (Dollars in thousands) Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2015 2016 2017 2018 2019 2020 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 12,055 $ 12,052 $ 10,621 $ 10,664 $ 10,383 $ 10,145 $ 1,059 475 2016 13,226 13,005 11,977 10,507 10,420 1,495 545 2017 12,786 12,171 10,600 10,167 3,493 488 2018 9,934 10,559 10,695 1,998 548 2019 9,781 9,746 4,616 504 2020 9,963 7,689 404 Total $ 61,136 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Reinsurance Lines – Property (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2014 2015 2016 2017 2018 2019 2020 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2014 $ 21,787 $ 18,861 $ 14,139 $ 13,590 $ 14,301 $ 13,554 $ 13,170 $ 330 — 2015 19,877 16,738 12,526 9,945 9,050 8,434 602 — 2016 23,646 22,485 12,497 13,021 11,902 1,176 — 2017 43,782 50,032 51,711 47,197 5,042 — 2018 59,022 66,314 65,190 11,107 — 2019 32,442 36,896 9,576 — 2020 13,751 9,209 — Total $ 196,540 (1) Incurred-but-not-reported liabilities plus expected development on reported claims Reinsurance Lines – Casualty (Dollars in thousands) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2020 Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 IBNR (1) Cumulative Number of Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2011 $ 45,726 $ 48,846 $ 44,692 $ 47,980 $ 46,510 $ 43,657 $ 42,968 $ 42,235 $ 41,826 $ 41,885 $ 590 — 2012 15,865 15,624 17,123 17,579 17,360 17,348 16,982 16,449 16,301 300 — 2013 1,224 1,262 1,172 1,013 974 974 112 98 1 — 2014 1,988 2,095 2,060 1,957 1,957 593 2 — — 2015 2,908 2,911 2,780 2,780 2,180 1,091 1,090 — 2016 3,627 3,627 3,627 3,627 3,627 3,627 — 2017 4,358 4,358 4,358 4,358 4,356 — 2018 5,573 5,573 5,573 5,573 — 2019 13,686 13,686 10,936 — 2020 30,398 30,252 — Total $ 117,019 (1) Incurred-but-not-reported liabilities plus expected development on reported claims |
Cumulative Paid Claims Development | Commercial Specialty – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2018 2019 2020 (unaudited) (unaudited) 2018 $ 36,161 $ 54,400 $ 56,350 2019 34,921 48,737 2020 51,119 Total 156,206 All outstanding liabilities before 2018, net of reinsurance 2,344 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 52,730 Commercial Specialty – Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2011 $ 5,451 $ 21,325 $ 41,282 $ 56,562 $ 64,722 $ 72,087 $ 74,839 $ 77,675 $ 78,595 $ 79,121 2012 3,500 11,884 22,456 31,231 36,360 39,596 39,899 40,595 40,877 2013 6,400 17,881 29,510 38,438 46,272 50,964 52,265 52,991 2014 3,968 15,690 26,268 33,697 39,361 42,517 44,842 2015 3,336 14,584 25,147 35,816 42,543 45,661 2016 4,135 14,027 21,966 34,872 40,531 2017 4,914 12,711 22,988 33,137 2018 4,297 13,827 22,065 2019 5,174 13,954 2020 5,466 Total 378,645 All outstanding liabilities before 2011, net of reinsurance 58,261 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 287,492 Specialty Property – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2019 2020 (unaudited) 2019 $ 66,786 $ 76,942 2020 84,514 Total 161,456 All outstanding liabilities before 2019, net of reinsurance 5,339 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 19,290 Specialty Property – Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2020 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 1,301 $ 4,979 $ 6,698 $ 9,129 $ 10,050 $ 10,136 2016 1,165 2,654 3,889 4,856 4,971 2017 979 2,658 4,502 5,803 2018 248 1,339 1,844 2019 397 1,221 2020 552 Total 24,527 All outstanding liabilities before 2015, net of reinsurance 661 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 13,529 Farm, Ranch & Stable – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2019 2020 (unaudited) 2019 $ 31,461 $ 35,338 2020 32,721 Total 68,059 All outstanding liabilities before 2019, net of reinsurance 1,214 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 8,731 Farm, Ranch & Stable – Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2020 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2015 $ 2,138 $ 3,778 $ 6,228 $ 6,986 $ 8,481 $ 9,057 2016 2,342 4,231 5,954 7,069 7,615 2017 1,153 2,145 4,242 6,156 2018 1,092 3,225 7,125 2019 1,626 3,853 2020 1,075 Total 34,881 All outstanding liabilities before 2015, net of reinsurance 1,130 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 27,385 Reinsurance Lines – Property (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2014 2015 2016 2017 2018 2019 2020 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2014 $ 2,243 $ 9,035 $ 10,460 $ 11,182 $ 12,339 $ 12,480 $ 12,558 2015 742 5,163 6,768 7,139 7,411 7,492 2016 2,071 5,704 7,161 8,514 9,399 2017 2,152 20,609 28,079 32,668 2018 21 21,608 36,936 2019 139 13,033 2020 561 Total 112,647 All outstanding liabilities before 2014, net of reinsurance 728 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 84,621 Reinsurance Lines – Casualty (Dollars in thousands) Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2011 $ 7,968 $ 20,072 $ 28,495 $ 36,020 $ 38,907 $ 39,815 $ 40,079 $ 40,303 $ 40,476 $ 40,693 2012 5,312 9,435 11,658 15,534 15,696 15,790 15,625 15,691 15,749 2013 123 50 62 65 65 65 71 70 2014 88 47 50 1 1 1 1 2015 107 128 1 1 1 1 2016 — — — — — 2017 — 2 2 2 2018 — — — 2019 27 801 2020 49 Total 57,366 All outstanding liabilities before 2011, net of reinsurance 2,273 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance $ 61,926 |
Supplementary Information about Average Historical Claims | The following is required supplementary information about average historical claims duration as of December 31, 2020: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 Commercial Specialty - Property 59.3 % 26.2 % 2.9 % The following is required supplementary information about average historical claims duration as of December 31, 2020: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 8 9 10 Commercial Specialty - Casualty 7.8 % 18.2 % 19.5 % 18.7 % 11.5 % 7.2 % 2.7 % 2.1 % 0.9 % 0.6 % The following is required supplementary information about average historical claims duration as of December 31, 2020. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 Specialty Property - Property 86.0 % 12.6 % The following is required supplementary information about average historical claims duration as of December 31, 2020: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 Specialty Property - Casualty 12.3 % 24.4 % 17.4 % 18.1 % 5.0 % 0.8 % The following is required supplementary information about average historical claims duration as of December 31, 2020. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 Farm, Ranch & Stable - Property 84.9 % 10.4 % The following is required supplementary information about average historical claims duration as of December 31, 2020: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 Farm, Ranch & Stable - Casualty 15.4 % 17.4 % 24.4 % 12.3 % 10.0 % 5.7 % The following is required supplementary information about average historical claims duration as of December 31, 2020: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 Reinsurance Lines - Property 7.5% 40.3% 16.3% 7.7% 6.5% 1.0% 0.6% The following is required supplementary information about average historical claims duration as of December 31, 2020: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) (1) (2) Year 1 2 3 4 5 6 7 8 9 10 Reinsurance Lines - Casualty 408.4% (204.0%) 23.8% (305.2%) (1.2%) 0.6% 1.5% (0.1%) 0.4% 0.5% (1) May not be indicative of future average annual percentage payout of incurred claims due to a change in mix of business (2) The payout patterns are calculated using simple averages consistent with last year’s calculation methodology. However, these payout patterns based on simple averages look unusual given the change in estimate of ultimate losses for accident years 2013 through 2015 during the year and due to very minimal yet volatile payment activity for those accident years. Using a weighted average approach would produce smoother payout patterns as less weight is given to the accident years with minimal paid losses. The resulting volume weighted ten year annual payout pattern, for ages one through ten would be 11.7%, 19.5%, 14.4%, 16.9%, 4.8%, 1.7%, 0.2%, 0.5%, 0.4%, and 0.5%, respectively. |
Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and Loss Adjustment Expenses in Consolidated Balance Sheets | The reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and loss adjustment expenses in the consolidated balance sheets as of December 31, 2020 is as follows: Net outstanding liabilities Commercial Specialty – Property $ 52,730 Commercial Specialty – Casualty 287,492 Specialty Property – Property 19,290 Specialty Property – Casualty 13,529 Farm, Ranch & Stable – Property 8,731 Farm, Ranch & Stable – Casualty 27,385 Reinsurance Lines – Property 84,621 Reinsurance Lines – Casualty 61,926 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance 555,704 Reinsurance recoverable on unpaid claims Commercial Specialty – Property 18,362 Commercial Specialty – Casualty 44,483 Specialty Property – Property 7,089 Specialty Property – Casualty 2,334 Farm, Ranch & Stable – Property 1,318 Farm, Ranch & Stable – Casualty 6,449 Reinsurance Lines – Property — Reinsurance Lines – Casualty — Total reinsurance recoverable on unpaid claims 80,035 Other outstanding liabilities Commercial Specialty Ceded Allowance 8,992 Unallocated claims adjustment expenses 14,967 Purchase accounting adjustment — Loss Clearing (2,034 ) Specialty Property — Fronted business ceded to Assurant 2,098 Unallocated claims adjustment expenses 926 Loss Clearing — Farm, Ranch & Stable — Ceded Allowance — Unallocated claims adjustment expenses 959 Loss Clearing — Reinsurance Lines — Unallocated claims adjustment expenses 356 Other 808 Total other outstanding liabilities 27,072 Total gross liability for unpaid losses and loss adjustment expenses $ 662,811 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Outstanding Debt | The Company’s outstanding debt consisted of the following at December 31, 2020 and 2019: December 31, (Dollars in thousands) 2020 2019 Margin Borrowing Facility $ — $ 73,629 7.75% Subordinated Notes due 2045 — 96,864 7.875% Subordinated Notes due 2047 126,288 126,147 Total $ 126,288 $ 296,640 |
Amounts Recorded for the Subordinated Notes | The following table represents the amounts recorded for the subordinated notes as of December 31, 2020 and 2019: December 31, 2020 (Dollars in thousands) Outstanding Principal Unamortized Debt Issuance Costs Net Carrying Amount 7.875% Subordinated Notes due 2047 130,000 (3,712 ) 126,288 $ 130,000 $ (3,712 ) $ 126,288 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 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expenses were as follows: Years Ended December 31, (Dollars in thousands) 2020 2019 Operating lease expenses $ 2,952 $ 3,293 Short-term lease expenses 7 7 Total lease expenses $ 2,959 $ 3,300 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Years Ended December 31, (Dollars in thousands) 2020 2019 Cash paid for amounts included in the measurement of liabilities: Operating leases $ 2,012 $ 2,530 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 772 $ 13,858 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheets. December 31, (Dollars in thousands) Classification on the consolidated balance sheets 2020 2019 Assets: Operating lease assets Other assets $ 21,077 $ 22,761 Liabilities: Operating lease liabilities Other liabilities $ 22,950 $ 23,539 Weighted-average remaining lease term Operating leases 8.8 years 10.2 years Weighted-average discount rate Operating leases (1) 2.6 % 2.7 % (1) Represents the Company’s incremental borrowing rate |
Future Minimum Lease Payments Under Non-cancelable Operating Leases | At December 31, 2020, future minimum lease payments under non-cancelable operating leases were as follows: (Dollars in thousands) 2021 $ 2,883 2022 2,756 2023 2,790 2024 2,816 2025 2,871 Thereafter 11,657 Total future minimum lease payments 25,773 Less: amount representing interest 2,823 Present value of minimum lease payments $ 22,950 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Dividends & Distributions Declared | Dividend & distribution payments of $0.25 per common share per quarter were declared during the year ended December 31, 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 December 6, 2020 (2) December 24, 2020 December 31, 2020 3,558 Various (3) Various Various 451 Total $ 14,645 (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 per quarter were declared during the year ended December 31, 2019 as follows: Approval Date Record Date Payment Date Total Dividends / Distributions 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 December 8, 2019 December 24, 2019 December 31, 2019 3,532 Various (1) Various Various 268 Total $ 14,374 (1) Represents dividends declared on unvested shares, net of forfeitures. Dividend payments of $0.25 per common share per quarter were declared during the year ended December 31, 2018 as follows: Approval Date Record Date Payment Date Total Dividends / Distributions Declared (Dollars in thousands) March 4, 2018 March 21, 2018 March 29, 2018 $ 3,499 June 3, 2018 June 22, 2018 June 29, 2018 3,502 September 16, 2018 September 27, 2018 October 1, 2018 3,504 December 2, 2018 December 24, 2018 December 31, 2018 3,506 Various (1) Various Various 197 Total $ 14,208 (1) Represents dividends declared on unvested shares, net of forfeitures. |
Information with Respect to Class A Common Shares that were Surrendered, Repurchased or Redeemed | The following table provides information with respect to the class A common shares that were surrendered, repurchased, or redeemed in 2020: Period (1) Total Number of Shares Purchased or Redeemed 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 Class A common shares: January 1-31, 2020 3,124 (2) $ 29.63 — — February 1-28, 2020 1,600 (2) $ 31.13 — — August 1-31, 2020 396 (2) $ 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. There were no class B common shares that were surrendered, repurchased, or redeemed in 2020. The following table provides information with respect to the class A common shares that were surrendered, repurchased, or redeemed in 2019: Period (1) Total Number of Shares Purchased or Redeemed 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 Class A common shares: 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. |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Line Items] | |
Summary of Award Activity for Stock Options Granted and Weighted Average Exercise Price Per Share | Award activity for stock options granted under the Plan and the weighted average exercise price per share are summarized as follows: Time-Based Options Performance- Based Options Total Options Weighted Average Exercise Price Per Share Options outstanding at January 1, 2018 300,000 300,000 (1) 600,000 $ 25.13 Options issued 300,000 — 300,000 50.00 Options forfeited — (100,000 ) (100,000 ) 38.43 Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2018 600,000 200,000 800,000 35.06 Options issued — — — — Options forfeited — — — — Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2019 600,000 200,000 800,000 35.06 Options issued 300,000 — 300,000 52.79 Options forfeited — (100,000 ) (100,000 ) 38.43 Options exercised — — — — Options expired — — — — Options purchased by the Company — — — — Options outstanding at December 31, 2020 900,000 100,000 1,000,000 $ 40.04 Options exercisable at December 31, 2020 600,000 100,000 700,000 $ 34.58 (1) In 2014, 300,000 performance-based options were granted. On March 6, 2018, the existing vesting provisions of these options were eliminated and replaced with new vesting provisions related to return on equity targets for 2018, 2019, and 2020 (“Bonus Years”). Return on equity targets for the 2018 and 2020 bonus years were not met. As a result, 100,000 performance-based options related to the 2018 bonus year and 100,000 performance-based options related to the 2020 bonus year were forfeited. 100,000 performance-based options remain outstanding. The remaining 100,000 performance-based options, which were related to return on equity targets for the 2019 bonus year, vested on December 31, 2019. These options are subject to remeasurement of 2019 bonus year results after the third full calendar year following the bonus year. |
Option Intrinsic values | Option intrinsic values, which are the differences between the fair value of $28.59 at December 31, 2020 and the strike price of the option, are as follows: Number of Shares Weighted Average Strike Price Intrinsic Value Outstanding 1,000,000 40.04 $3.2 Million Exercisable 700,000 34.58 $3.2 Million Exercised (1) — — — (1) The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. |
Options Exercisable | The options exercisable at December 31, 2020 include the following: Option Price Number of options exercisable $ 17.87 300,000 $ 38.43 (1) 100,000 $ 50.00 300,000 Options exercisable at December 31, 2020 700,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. |
Significant Assumptions Used to Estimate Fair Value of Stock Options Granted Using Black Scholes Option Pricing Model | There were no options granted under the Plan in 2019. The weighted average fair value of options granted under the Plan was $1.92 in 2020 and $3.79 in 2018 using a Black-Scholes option-pricing model and the following weighted average assumptions. 2020 2018 Dividend yield 2.0% 2.0% Expected volatility 38.32% 22.47% Risk-free interest rate 0.4% 2.0% Expected option life 3.5 years 3.3 years |
Summary of Range of Exercise Prices of Options Outstanding | The following tables summarize the range of exercise prices of options outstanding at December 31, 2020, 2019, and 2018: Ranges of Exercise Prices Outstanding at December 31, 2020 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $ 17.87 0.7 years $30.00 — $38.43 100,000 (1) $ 38.43 4.0 years $49.62 — $59.99 600,000 $ 51.40 8.5 years Total 1,000,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. Ranges of Exercise Prices Outstanding at December 31, 2019 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $ 17.87 1.7 years $30.00 — $38.43 200,000 (1) $ 38.43 5.0 years $50.00 — $59.99 300,000 $ 50.00 8.0 years Total 800,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. Ranges of Exercise Prices Outstanding at December 31, 2018 Weighted Average Per Share Exercise Price Weighted Average Remaining Life $17.87 — $19.99 300,000 $ 17.87 2.7 years $30.00 — $38.43 200,000 (1) $ 38.43 6.0 years $50.00 — $59.99 300,000 $ 50.00 9.0 years Total 800,000 (1) the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. |
Summary of Restricted Stock Awards Since Inception | The following table summarizes the restricted stock grants since the 2003 inception of the original share incentive plan: Restricted Stock Awards Year Employees Directors Total Inception through 2017 1,089,118 540,515 1,629,633 2018 38,778 31,646 70,424 2019 43,680 66,919 110,599 2020 — 108,521 108,521 1,171,576 747,601 1,919,177 |
Summary of Non-Vested Restricted Shares/Units Activity | The following table summarizes the non-vested restricted shares activity for the years ended December 31, 2020, 2019, and 2018: Number of Shares Weighted Average Price Per Share Non-vested Restricted Shares at January 1, 2018 212,812 29.67 Shares issued 70,424 38.85 Shares vested (166,117 ) 30.88 Shares forfeited (3,255 ) 28.91 Non-vested Restricted Shares at December 31, 2018 113,864 33.61 Shares issued 110,599 30.93 Shares vested (150,395 ) 29.86 Shares forfeited (11,828 ) 38.42 Non-vested Restricted Shares at December 31, 2019 62,240 37.00 Shares issued 108,521 24.86 Shares vested (128,623 ) 26.84 Shares forfeited (6,735 ) 27.74 Non-vested Restricted Shares at December 31, 2020 35,403 $ 38.45 |
Restricted Stock Units | |
Disclosure Of Compensation Related Costs Sharebased Payments [Line Items] | |
Summary of Restricted Stock Awards Since Inception | The following table summarizes the restricted stock unit grants since the 2003 inception of the original share incentive plan: Restricted Stock Unit Awards Year Employees Directors Total Inception through 2018 — — — 2019 175,498 — 175,498 2020 161,238 41,667 202,905 336,736 41,667 378,403 |
Summary of Non-Vested Restricted Shares/Units Activity | The following table summarizes the non-vested restricted stock units activity for the years ended December 31, 2020, 2019, and 2018: Number of Restricted Stock Units Weighted Average Price Per Restricted Stock Unit Non-vested Restricted Stock Units at January 1, 2018 — $ — Restricted Stock Units issued — — Restricted Stock Units vested — — Restricted Stock Units forfeited — — Non-vested Restricted Stock Units at December 31, 2018 — $ — Restricted Stock Units issued 175,498 30.18 Restricted Stock Units vested — — Restricted Stock Units forfeited — — Non-vested Restricted Stock Units at December 31, 2019 175,498 $ 30.18 Restricted Stock Units issued 202,905 29.02 Restricted Stock Units vested (41,667 ) 24.00 Restricted Stock Units forfeited (21,710 ) 30.06 Non-vested Restricted Stock Units at December 31, 2020 315,026 $ 30.26 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Years Ended December 31, (Dollars in thousands, except share and per share data) 2020 2019 2018 Numerator: Net income (loss) $ (21,006 ) $ 70,015 $ (56,696 ) Less: preferred stock distributions 152 — — Net income (loss) available to common shareholders $ (21,158 ) $ 70,015 $ (56,696 ) Denominator: Weighted average shares for basic earnings per share 14,291,265 14,191,756 14,088,883 Non-vested restricted stock — 20,492 — Non-vested restricted stock units — 3,392 — Options — 119,066 — Weighted average shares for diluted earnings per share (1) 14,291,265 14,334,706 14,088,883 Earnings per share - Basic $ (1.48 ) $ 4.93 $ (4.02 ) Earnings per share - Diluted $ (1.48 ) $ 4.88 $ (4.02 ) (1) For the years ended December 31, 2020 and 2018, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss for these periods. |
Statutory Financial Informati_2
Statutory Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Information for United States Insurance Companies & Global Indemnity Reinsurance, Net of Intercompany Eliminations, as Determined in Accordance With SAP and Bermuda | The following is selected information for the Company’s insurance companies, net of intercompany eliminations, where applicable, as determined in accordance with SAP: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Statutory capital and surplus, as of end of period $ 342,987 $ 263,793 $ 225,645 Statutory net income (loss) 73,655 39,971 (52,036 ) |
Global Indemnity Reinsurance | |
Information for United States Insurance Companies & Global Indemnity Reinsurance, Net of Intercompany Eliminations, as Determined in Accordance With SAP and Bermuda | The following is selected information for Global Indemnity Reinsurance, net of intercompany eliminations, where applicable, as determined in accordance with the Bermuda Insurance Act 1978: Years Ended December 31, (Dollars in thousands) 2019 2018 Statutory capital and surplus, as of end of period $ 885,763 $ 835,620 Statutory net income (loss) 34,086 (3,972 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Business Segment Information | The following are tabulations of business segment information for the years ended December 31, 2020, 2019, and 2018. Corporate information is included to reconcile segment data to the consolidated financial statements. 2020: (Dollars in thousands) Commercial Specialty Specialty Property Farm, Ranch, & Stable Reinsurance Operations (1) Total Revenues: Gross written premiums $ 321,879 $ 138,401 (2) $ 85,646 $ 60,677 $ 606,603 Net written premiums $ 292,216 $ 121,111 $ 74,163 $ 60,677 $ 548,167 Net earned premiums $ 285,694 $ 131,474 $ 76,166 $ 74,365 $ 567,699 Other income — 1,705 142 191 2,038 Total revenues 285,694 133,179 76,308 74,556 569,737 Losses and Expenses: Net losses and loss adjustment expenses 155,271 94,540 47,151 39,239 336,201 Acquisition costs and other underwriting expenses 104,659 55,547 29,761 25,640 215,607 Income (loss) from segments $ 25,764 $ (16,908 ) $ (604 ) $ 9,677 17,929 Unallocated Items: Net investment income 28,392 Net realized investment losses (14,662 ) Other income 80 Corporate and other operating expenses (41,998 ) Interest expense (15,792 ) Loss on extinguishment of debt (3,060 ) Loss before income taxes (29,111 ) Income tax benefit 8,105 Net loss $ (21,006 ) Segment assets $ 850,813 $ 237,835 $ 152,037 $ 278,174 $ 1,518,859 Corporate assets 386,049 Total assets $ 1,904,908 (1) External business only, excluding business assumed from affiliates. (2) Includes less than $0.1 million of business written by American Reliable that was ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. 2019: (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 297,332 $ 163,503 (3) $ 87,745 $ 88,281 $ 636,861 Net written premiums $ 258,719 $ 140,670 $ 74,416 $ 88,284 $ 562,089 Net earned premiums $ 237,758 $ 140,232 $ 71,312 $ 75,960 $ 525,262 Other income (loss) — 1,820 132 (136 ) 1,816 Total revenues 237,758 142,052 71,444 75,824 527,078 Losses and Expenses: Net losses and loss adjustment expenses 108,911 75,426 42,700 48,365 275,402 Acquisition costs and other underwriting expenses 96,475 58,768 29,551 23,609 208,403 Income (loss) from segments $ 32,372 $ 7,858 $ (807 ) $ 3,850 43,273 Unallocated Items: Net investment income 42,052 Net realized investment gains 35,342 Corporate and other operating expenses (18,888 ) Interest expense (20,022 ) Income before income taxes 81,757 Income tax expense (11,742 ) Net income $ 70,015 Segment assets $ 713,010 $ 226,388 $ 136,891 $ 325,451 $ 1,401,740 Corporate assets 674,145 Total assets $ 2,075,885 (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. ( 3 ) Includes ($273) of business written by American Reliable that was ceded to insurance companies 2018: (Dollars in thousands) Commercial Specialty (1) Specialty Property (1) Farm, Ranch, & Stable (1) Reinsurance Operations (2) Total Revenues: Gross written premiums $ 249,948 $ 170,168 (6) $ 79,738 $ 48,043 $ 547,897 Net written premiums $ 226,827 $ 127,470 $ 70,217 $ 48,033 $ 472,547 Net earned premiums $ 218,357 $ 128,768 $ 69,248 $ 51,402 $ 467,775 Other income (loss) — 1,782 156 (210 ) 1,728 Total revenues 218,357 130,550 69,404 51,192 469,503 Losses and Expenses: Net losses and loss adjustment expenses 114,476 122,709 41,180 56,260 334,625 Acquisition costs and other underwriting expenses 87,371 (3) 55,760 (4) 29,801 (5) 17,846 190,778 Income (loss) from segments $ 16,510 $ (47,919 ) $ (1,577 ) $ (22,914 ) (55,900 ) Unallocated Items: Net investment income 46,342 Net realized investment losses (16,907 ) Corporate and other operating expenses (29,766 ) Interest expense (19,694 ) Loss before income taxes (75,925 ) Income tax benefit 19,229 Net loss $ (56,696 ) Segment assets $ 712,632 $ 270,083 $ 134,056 $ 316,922 $ 1,433,693 Corporate assets 526,573 Total assets $ 1,960,266 (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. (3) Includes federal excise tax of $386 relating to cessions from Commercial Specialty to Reinsurance Operations. (4) Includes federal excise tax of $313 relating to cessions from Specialty Property to Reinsurance Operations. (5) Includes federal excise tax of $145 relating to cessions from Farm, Ranch & Stable to Reinsurance Operations. ( 6 ) Includes ($2,062) of business written by American Reliable that was ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Net Federal Income Taxes and Cash Interest Paid | The Company paid the following net federal income taxes and interest for 2020, 2019, and 2018: Years Ended December 31, (Dollars in thousands) 2020 2019 2018 Federal income taxes paid $ 162 $ 251 $ 859 Federal income taxes recovered 10,987 170 — Interest paid 16,602 19,711 19,387 |
Summary of Quarterly Financia_2
Summary of Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Performance | An unaudited summary of the Company’s 2020 and 2019 quarterly performance is as follows: Year Ended December 31, 2020 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net earned premiums $ 144,468 $ 141,847 $ 140,302 $ 141,082 Net investment income (loss) 10,129 (2,359 ) 11,746 8,876 Net realized investment gains (losses) (68,162 ) 38,507 7,323 7,670 Net losses and loss adjustment expenses 77,647 67,297 97,148 94,109 Acquisition costs and other underwriting expenses 56,412 53,578 53,268 52,349 Income (loss) before income taxes (56,547 ) 44,556 (18,379 ) 1,259 Net income (loss) available to common shareholders (44,578 ) 37,551 (15,212 ) 1,081 Per share data - Diluted: Net income (loss) available to common shareholders $ (3.13 ) $ 2.61 $ (1.06 ) $ 0.07 Year Ended December 31, 2019 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net earned premiums $ 122,089 $ 128,201 $ 133,312 $ 141,660 Net investment income 7,219 13,826 11,348 9,659 Net realized investment gains (losses) 10,390 3,590 (2,690 ) 24,052 Net losses and loss adjustment expenses 58,321 70,075 73,583 73,423 Acquisition costs and other underwriting expenses 49,743 50,534 53,366 54,760 Income before income taxes 23,894 15,849 6,404 35,610 Net income available to common shareholders 19,600 14,663 6,721 29,031 Per share data - Diluted: Net income available to common shareholders $ 1.37 $ 1.02 $ 0.47 $ 2.02 |
Principles of Consolidation a_3
Principles of Consolidation and Basis of Presentation - Additional Information (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019Segment | Dec. 31, 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 | 4 | |
Specialty Property and Farm, Ranch, & Stable | ||
Organization And Basis Of Presentation [Line Items] | ||
Number of business segments | 2 | 2 |
Commercial Specialty | ||
Organization And Basis Of Presentation [Line Items] | ||
Number of product classifications | Product | 4 |
Redomestication - Additional In
Redomestication - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Aug. 27, 2020 | Dec. 31, 2019 | |
Redomestication [Line Items] | |||
Redomestication close | Aug. 28, 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 | ||
Series A Cumulative Fixed Rate Preferred Shares | |||
Redomestication [Line Items] | |||
Preferred shares, shares issued | 4,000 | 4,000 | 0 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2020USD ($)Entity | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Significant Accounting Policies [Line Items] | |||
Ownership interest exceeds respective investments | 3.00% | ||
Investments in other invested assets | $ 97,018,000 | $ 47,279,000 | |
Cash and cash equivalents | 67,359,000 | 44,271,000 | |
Allowance for expected credit losses | 2,900,000 | 2,754,000 | |
Impairment of goodwill | 0 | 0 | |
Impairments of indefinite lived intangible assets | 0 | 0 | |
Impairment of definite lived intangible assets | 0 | 0 | |
Allowance for expected credit losses on reinsurance receivables | 8,992,000 | 8,992,000 | |
Amortization of deferred acquisition costs | 140,900,000 | 132,300,000 | $ 118,000,000 |
Premium deficiency reserve | 0 | 0 | |
Net foreign currency transaction gains (losses) | $ 100,000 | 300,000 | $ (2,900,000) |
Variable Interest Entity, Not Primary Beneficiary | |||
Significant Accounting Policies [Line Items] | |||
Ownership interest exceeds respective investments | 3.00% | ||
Number of VIEs | Entity | 4 | ||
Money Market Funds | |||
Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 58,000,000 | $ 35,800,000 |
Investments - Additional Inform
Investments - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2020USD ($)Entity | Dec. 31, 2019USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Accrued interest receivable | $ 5,700,000 | $ 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 | $ 37,300,000 | |
Insurance enhanced bonds as a percentage of total cash and invested assets | 2.60% | |
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | $ 37,300,000 | |
Ownership interest exceeds respective investments | 3.00% | |
Variable Interest Entity, Not Primary Beneficiary | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of VIE's | Entity | 4 | |
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 | $ 10,800,000 | 13,500,000 |
Variable interest entities, maximum exposure to loss | 25,000,000 | 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 | 15,700,000 | 24,000,000 |
Variable interest entities, maximum exposure to loss | 32,700,000 | 41,000,000 |
Third VIE that invests in REIT qualifying assets | ||
Debt Securities, Available-for-sale [Line Items] | ||
Significant variable interest in carrying value of the non-consolidated VIE | 10,500,000 | 9,800,000 |
Variable interest entities, maximum exposure to loss | 10,500,000 | $ 10,300,000 |
Fourth VIE that invests in Broad Portfolio of Non-Investment Grade Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Significant variable interest in carrying value of the non-consolidated VIE | 60,000,000 | |
Variable interest entities, maximum exposure to loss | 60,000,000 | |
Municipal Bond Insurance Association | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | 3,100,000 | |
Assured Guaranty Corporation | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | 9,900,000 | |
U.S. Treasury and Agency Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 1,089,000 | |
Obligations of States and Political Subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 67,000 | |
Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 551,000 | |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | $ 646,000 | |
Weighted average credit enhancement | 33.60% | |
Commercial Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | $ 644,000 | |
Weighted average credit enhancement | 39.50% | |
Investments in insurance enhanced bonds | $ 14,300,000 | |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 373,000 | |
Foreign Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | 27,000 | |
Collateralized Mortgage Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in insurance enhanced bonds | $ 7,800,000 | |
Fannie Mae Mortgage Pools | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment in mortgage pools as percentage of shareholders' equity | 3.90% | 4.20% |
Municipal Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in insurance enhanced bonds | $ 15,200,000 | |
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 | 22,100,000 | |
Ambac Financial Group | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds | $ 2,200,000 |
Schedule of Amortized Cost and
Schedule of Amortized Cost and Estimated Fair Value of Company's Fixed Maturities Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | $ 1,149,009 | $ 1,231,568 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 45,574 | 23,641 |
Fixed maturities, Gross Unrealized losses | (3,397) | (2,050) |
Fixed maturities, Estimated Fair Value | 1,191,186 | 1,253,159 |
U.S. Treasury and Agency Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 195,444 | 153,906 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 3,125 | 3,580 |
Fixed maturities, Gross Unrealized losses | (1,089) | (797) |
Fixed maturities, Estimated Fair Value | 197,480 | 156,689 |
Obligations of States and Political Subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 58,140 | 63,256 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 3,170 | 853 |
Fixed maturities, Gross Unrealized losses | (67) | (271) |
Fixed maturities, Estimated Fair Value | 61,243 | 63,838 |
Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 351,453 | 325,448 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 7,876 | 3,177 |
Fixed maturities, Gross Unrealized losses | (551) | (251) |
Fixed maturities, Estimated Fair Value | 358,778 | 328,374 |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 116,349 | 168,020 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 1,890 | 937 |
Fixed maturities, Gross Unrealized losses | (646) | (420) |
Fixed maturities, Estimated Fair Value | 117,593 | 168,537 |
Commercial Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 105,509 | 183,944 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 6,094 | 4,369 |
Fixed maturities, Gross Unrealized losses | (644) | (209) |
Fixed maturities, Estimated Fair Value | 110,959 | 188,104 |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 223,387 | 239,860 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 17,703 | 8,478 |
Fixed maturities, Gross Unrealized losses | (373) | (79) |
Fixed maturities, Estimated Fair Value | 240,717 | 248,259 |
Foreign Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Amortized Cost | 98,727 | 97,134 |
Fixed maturities, Allowance for Expected Credit Losses | 0 | |
Fixed maturities, Gross Unrealized Gains | 5,716 | 2,247 |
Fixed maturities, Gross Unrealized losses | (27) | (23) |
Fixed maturities, Estimated Fair Value | $ 104,416 | $ 99,358 |
Schedule of Investments in Equi
Schedule of Investments in Equity Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | $ 98,990 | $ 263,104 |
Common Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | 60,379 | 135,329 |
Preferred Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, at fair value | 11,683 | 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 | $ 26,928 | $ 54,648 |
Summary of Amortized Cost and E
Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | $ 45,055 | |
Due in one year through five years, Amortized Cost | 204,299 | |
Due in five years through ten years, Amortized Cost | 238,966 | |
Due in ten years through fifteen years, Amortized Cost | 23,682 | |
Due after fifteen years, Amortized Cost | 63,696 | |
Fixed maturities, Amortized Cost | 1,149,009 | $ 1,231,568 |
Due in one year or less, Estimated Fair value | 45,346 | |
Due in one year through five years, Estimated Fair value | 214,737 | |
Due in five years through ten years, Estimated Fair value | 250,462 | |
Due in ten years through fifteen years, Estimated Fair value | 25,349 | |
Due after fifteen years, Estimated Fair value | 67,962 | |
Fixed Maturities, estimated fair value | 1,191,186 | 1,253,159 |
Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 351,453 | |
Fixed maturities, Amortized Cost | 351,453 | 325,448 |
Estimated Fair value | 358,778 | |
Fixed Maturities, estimated fair value | 358,778 | 328,374 |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 116,349 | |
Fixed maturities, Amortized Cost | 116,349 | 168,020 |
Estimated Fair value | 117,593 | |
Fixed Maturities, estimated fair value | 117,593 | 168,537 |
Commercial Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 105,509 | |
Fixed maturities, Amortized Cost | 105,509 | 183,944 |
Estimated Fair value | 110,959 | |
Fixed Maturities, estimated fair value | $ 110,959 | $ 188,104 |
Summary of Securities with Gros
Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
U.S. Treasury and Agency Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Gross Unrealized Losses | $ (1,089) | |
Obligations of States and Political Subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Gross Unrealized Losses | (67) | |
Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Gross Unrealized Losses | (551) | |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Gross Unrealized Losses | (646) | |
Commercial Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Gross Unrealized Losses | (644) | |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Gross Unrealized Losses | (373) | |
Foreign Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Gross Unrealized Losses | (27) | |
Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 183,167 | $ 249,721 |
Less than 12 months, Gross Unrealized Losses | (3,022) | (1,774) |
12 months or longer, Fair Value | 14,512 | 21,034 |
12 months or longer, Gross Unrealized Losses | (375) | (276) |
Total, Fair Value | 197,679 | 270,755 |
Total, Gross Unrealized Losses | (3,397) | (2,050) |
Fixed Maturities | U.S. Treasury and Agency Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 81,999 | 35,633 |
Less than 12 months, Gross Unrealized Losses | (1,089) | (797) |
12 months or longer, Fair Value | 0 | |
12 months or longer, Gross Unrealized Losses | 0 | |
Total, Fair Value | 81,999 | 35,633 |
Total, Gross Unrealized Losses | (1,089) | (797) |
Fixed Maturities | Obligations of States and Political Subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 2,588 | 27,180 |
Less than 12 months, Gross Unrealized Losses | (67) | (271) |
12 months or longer, Fair Value | 0 | |
12 months or longer, Gross Unrealized Losses | 0 | |
Total, Fair Value | 2,588 | 27,180 |
Total, Gross Unrealized Losses | (67) | (271) |
Fixed Maturities | Mortgage Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 57,350 | 93,579 |
Less than 12 months, Gross Unrealized Losses | (551) | (244) |
12 months or longer, Fair Value | 4 | 902 |
12 months or longer, Gross Unrealized Losses | 0 | (7) |
Total, Fair Value | 57,354 | 94,481 |
Total, Gross Unrealized Losses | (551) | (251) |
Fixed Maturities | Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 22,268 | 43,402 |
Less than 12 months, Gross Unrealized Losses | (389) | (167) |
12 months or longer, Fair Value | 13,354 | 16,152 |
12 months or longer, Gross Unrealized Losses | (257) | (253) |
Total, Fair Value | 35,622 | 59,554 |
Total, Gross Unrealized Losses | (646) | (420) |
Fixed Maturities | Commercial Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 10,294 | 25,698 |
Less than 12 months, Gross Unrealized Losses | (526) | (196) |
12 months or longer, Fair Value | 1,154 | 1,945 |
12 months or longer, Gross Unrealized Losses | (118) | (13) |
Total, Fair Value | 11,448 | 27,643 |
Total, Gross Unrealized Losses | (644) | (209) |
Fixed Maturities | Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 7,783 | 19,407 |
Less than 12 months, Gross Unrealized Losses | (373) | (79) |
12 months or longer, Fair Value | 0 | |
12 months or longer, Gross Unrealized Losses | 0 | |
Total, Fair Value | 7,783 | 19,407 |
Total, Gross Unrealized Losses | (373) | (79) |
Fixed Maturities | Foreign Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 885 | 4,822 |
Less than 12 months, Gross Unrealized Losses | (27) | (20) |
12 months or longer, Fair Value | 0 | 2,035 |
12 months or longer, Gross Unrealized Losses | 0 | (3) |
Total, Fair Value | 885 | 6,857 |
Total, Gross Unrealized Losses | $ (27) | $ (23) |
Schedule of Impairments on Inve
Schedule of Impairments on Investments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |||
OTTI losses, gross | $ 0 | $ (1,897) | $ (456) |
Impairment related to intent to sell | (760) | 0 | 0 |
Total | $ (760) | $ (1,897) | $ (456) |
Schedule of Credit Losses Recog
Schedule of Credit Losses Recognized in Earnings (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
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 | (13) | 0 |
Balance at end of period | $ 0 | $ 13 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income, Net of Tax (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Investments Debt And Equity Securities [Abstract] | |||
Fixed maturities | $ 42,177 | $ 21,591 | |
Foreign currency fluctuations | 161 | (1,032) | |
Deferred taxes | (8,030) | (2,950) | |
Accumulated other comprehensive income, net of tax | $ 34,308 | $ 17,609 | $ (21,231) |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance, net of tax | $ 17,609 | $ (21,231) |
Other comprehensive income (loss) before reclassification, before tax | 44,623 | 50,627 |
Amounts reclassified from accumulated other comprehensive income (loss), before tax | (22,844) | (6,059) |
Other comprehensive income (loss), before tax | 21,779 | 44,568 |
Income tax benefit (expense) | (5,080) | (5,728) |
Ending balance, net of tax | 34,308 | 17,609 |
Unrealized Gains and Losses on Available for Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance, net of tax | 18,641 | (19,897) |
Other comprehensive income (loss) before reclassification, before tax | 43,430 | 50,325 |
Amounts reclassified from accumulated other comprehensive income (loss), before tax | (22,844) | (6,059) |
Other comprehensive income (loss), before tax | 20,586 | 44,266 |
Income tax benefit (expense) | (5,046) | (5,728) |
Ending balance, net of tax | 34,181 | 18,641 |
Foreign Currency Items | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance, net of tax | (1,032) | (1,334) |
Other comprehensive income (loss) before reclassification, before tax | 1,193 | 302 |
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 0 | 0 |
Other comprehensive income (loss), before tax | 1,193 | 302 |
Income tax benefit (expense) | (34) | 0 |
Ending balance, net of tax | $ 127 | $ (1,032) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total before tax | $ (1,259) | $ 18,379 | $ (44,556) | $ 56,547 | $ (35,610) | $ (6,404) | $ (15,849) | $ (23,894) | $ 29,111 | $ (81,757) | $ 75,925 |
Income tax expense (benefit) | (8,105) | 11,742 | (19,229) | ||||||||
Net income (loss) | 21,006 | (70,015) | $ 56,696 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications, net of tax | (17,794) | (5,437) | |||||||||
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 | (23,604) | (7,956) | |||||||||
Other than temporary impairment losses on investments | 760 | 1,897 | |||||||||
Total before tax | (22,844) | (6,059) | |||||||||
Income tax expense (benefit) | 5,050 | 622 | |||||||||
Net income (loss) | (17,794) | (5,437) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Items | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other net realized investment (gains) losses | 0 | 0 | |||||||||
Income tax expense (benefit) | 0 | 0 | |||||||||
Net income (loss) | $ 0 | $ 0 |
Components of Net Realized Inve
Components of Net Realized Investment Gains (Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Total net realized investment gains (losses) | $ 7,670 | $ 7,323 | $ 38,507 | $ (68,162) | $ 24,052 | $ (2,690) | $ 3,590 | $ 10,390 | $ (14,662) | $ 35,342 | $ (16,907) | |
Equity securities, Gross realized gains | 16,997 | 40,730 | 6,491 | |||||||||
Equity securities, Gross realized losses | (32,247) | (6,737) | (22,592) | |||||||||
Equity securities, Total net realized investment gains (losses) | (15,250) | 33,993 | (16,101) | |||||||||
Not Designated as Hedging Instrument | Interest Rate Swap | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Gross realized gains | 19,460 | 3,518 | 3,906 | |||||||||
Gross realized losses | (41,716) | (8,228) | (1,789) | |||||||||
Total net realized investment gains (losses) | [1] | (22,256) | (4,710) | 2,117 | ||||||||
Fixed Maturities | ||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||
Gross realized gains | 28,381 | 9,675 | 354 | |||||||||
Gross realized losses | (5,537) | (3,616) | (3,277) | |||||||||
Total net realized investment gains (losses) | $ 22,844 | $ 6,059 | $ (2,923) | |||||||||
[1] | Includes periodic net interest settlements related to the derivatives of $4.5 |
Components of Net Realized In_2
Components of Net Realized Investment Gains (Losses) (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Net interest settlements | $ (22,256) | $ (4,710) | $ 2,117 |
Interest Rate Swap | |||
Debt Securities, Available-for-sale [Line Items] | |||
Net interest settlements | $ 4,500 | $ 1,200 | $ 1,900 |
Summary of Calculation of Reali
Summary of Calculation of Realized Gains and Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |||
Equity securities, Total net realized investment gains (losses) | $ (15,250) | $ 33,993 | $ (16,101) |
Less: net gains (losses) recognized during the period on equity securities sold during the period | (103) | 10,846 | 5,921 |
Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date | $ (15,147) | $ 23,147 | $ (22,022) |
Schedule of Proceeds From Sales
Schedule of Proceeds From Sales and Redemptions of Available for Sale Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |||
Fixed maturities | $ 791,554 | $ 977,321 | $ 293,348 |
Equity securities | $ 604,772 | $ 260,891 | $ 35,639 |
Schedule of Investment Income (
Schedule of Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Investment income | $ 31,487 | $ 45,267 | $ 49,178 | ||||||||
Investment expense | (3,095) | (3,215) | (2,836) | ||||||||
Net investment income | $ 8,876 | $ 11,746 | $ (2,359) | $ 10,129 | $ 9,659 | $ 11,348 | $ 13,826 | $ 7,219 | 28,392 | 42,052 | 46,342 |
Fixed Maturities | |||||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Investment income | 31,987 | 36,673 | 37,085 | ||||||||
Equity Securities | |||||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Investment income | 4,944 | 7,006 | 4,037 | ||||||||
Cash and Cash Equivalents | |||||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Investment income | 784 | 1,510 | 1,177 | ||||||||
Other Invested Assets | |||||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Investment income | $ (6,228) | $ 78 | $ 6,879 |
Schedule of Total Investment Re
Schedule of Total Investment Return (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |||||||||||
Net investment income | $ 8,876 | $ 11,746 | $ (2,359) | $ 10,129 | $ 9,659 | $ 11,348 | $ 13,826 | $ 7,219 | $ 28,392 | $ 42,052 | $ 46,342 |
Net realized investment gains (losses) | $ 7,670 | $ 7,323 | $ 38,507 | $ (68,162) | $ 24,052 | $ (2,690) | $ 3,590 | $ 10,390 | (14,662) | 35,342 | (16,907) |
Change in unrealized holding gains and losses | 21,779 | 44,568 | (22,853) | ||||||||
Net realized and unrealized investment returns | 7,117 | 79,910 | (39,760) | ||||||||
Total investment return | $ 35,509 | $ 121,962 | $ 6,582 | ||||||||
Total investment return % | 2.30% | 7.80% | 0.40% | ||||||||
Average investment portfolio | $ 1,528,425 | $ 1,558,565 | $ 1,522,805 |
Summary of Estimated Fair Value
Summary of Estimated Fair Values of Bonds Held on Deposit (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 131,664 | $ 431,356 |
On Deposit With Governmental Authorities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 26,966 | 26,431 |
Intercompany Trusts Held For Benefit Of U.S. Policyholders | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 0 | 179,116 |
Held In Trust Pursuant To Third Party Requirements | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 100,234 | 133,122 |
Letter Of Credit Held For Third Party Requirements | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 3,970 | 1,458 |
Securities Held As Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 494 | $ 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 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amount | [1] | $ 242,018 | $ 274,710 |
Fair Value | [1] | (16,430) | (10,275) |
Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 213,022 | 200,000 | |
Fair Value | (16,430) | (10,275) | |
Futures Contracts on Bonds | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | [2] | 28,996 | 16,894 |
Fair Value | [2] | 0 | 0 |
Futures Contracts on Equities | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | [2] | 0 | 57,816 |
Fair Value | [2] | $ 0 | $ 0 |
[1] | The derivatives are held by GBLI Holdings, LLC and are guaranteed by Global Indemnity Group, LLC | ||
[2] | 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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) for changes in fair value and net settlements of derivatives | $ (22,256) | $ (4,710) | $ 2,117 |
Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) for changes in fair value and net settlements of derivatives | 4,500 | 1,200 | 1,900 |
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 | (10,691) | (7,449) | 2,117 |
Futures Contracts on Bonds | Net Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) for changes in fair value and net settlements of derivatives | (2,576) | 873 | 0 |
Futures Contracts on Equities | Net Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) for changes in fair value and net settlements of derivatives | $ (8,989) | $ 1,866 | $ 0 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Trading Futures Contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Initial margin in securities | $ 0.5 | $ 3 |
Mark-to-market receivable | 0.1 | 0.3 |
Other Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Funds needed to post execute swap transaction | 2.8 | 3 |
Other Assets | Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Margin calls made in connection with interest rate swaps | $ 17.5 | $ 12.5 |
Company's Invested Assets and D
Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | $ 1,191,186 | $ 1,253,159 |
Equity securities | 98,990 | 263,104 |
U.S. Treasury and Agency Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 197,480 | 156,689 |
Obligations of States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 61,243 | 63,838 |
Mortgage Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 358,778 | 328,374 |
Commercial Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 110,959 | 188,104 |
Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 117,593 | 168,537 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 240,717 | 248,259 |
Foreign Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 104,416 | 99,358 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 1,191,186 | 1,253,159 |
Equity securities | 98,990 | 263,104 |
Total invested assets | 1,290,176 | 1,516,263 |
Total invested liabilities | 16,430 | 10,275 |
Fair Value, Measurements, Recurring | Derivative instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested liabilities | 16,430 | 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 | 197,480 | 156,689 |
Equity securities | 87,307 | 251,448 |
Total invested assets | 284,787 | 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 | 993,706 | 1,096,470 |
Equity securities | 11,683 | 11,656 |
Total invested assets | 1,005,389 | 1,108,126 |
Total invested liabilities | 16,430 | 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 | 16,430 | 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 | 197,480 | 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 | 197,480 | 156,689 |
Fair Value, Measurements, Recurring | U.S. Treasury and Agency Obligations | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total invested assets | 0 | 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 | 61,243 | 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 | 61,243 | 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 | 358,778 | 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 | 358,778 | 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 | 110,959 | 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 | 110,959 | 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 | 117,593 | 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 | 117,593 | 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 | 240,717 | 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 | 240,717 | 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 | 104,416 | 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 | 104,416 | 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 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | $ 126,288 | $ 296,640 | |
Debt, fair value | 132,008 | 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] | 126,288 | 126,147 |
Debt, fair value | [2] | 132,008 | 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 $3.1 million. In August 2020, the Company redeemed all of its outstanding 7.75% subordinated notes due 2045 and unamortized debt issuance cost of $3.1 million was written off and included in the consolidated statements of operations as loss on the extinguishment of debt. | ||
[2] | As of December 31, 2020 and 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 | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2020 | Apr. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
7.75% Subordinated Notes due 2045 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Subordinated Notes percentage | 7.75% | 7.75% | 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 | |
Unamortized Debt Issuance Costs | $ 3,712 | $ 3,853 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2020 | Apr. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Ownership interest exceeds respective investments | 3.00% | ||||
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 | $ (6.2) | $ 6.9 | |||
Maximum | 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 | $ 0.1 | ||||
Variable Interest Entity, Not Primary Beneficiary | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Ownership interest exceeds respective investments | 3.00% | ||||
7.75% Subordinated Notes due 2045 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Subordinated Notes due date | 2045 | 2045 | 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 | ||
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 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 97,018 | $ 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] | 10,808 | 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] | 15,721 | 23,966 |
Future Funding Commitments | [2] | 17,000 | 17,000 |
Mortgage Debt Fund, LP | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [3] | 10,489 | 9,783 |
Future Funding Commitments | [3] | 0 | 506 |
Credit Fund, LLC | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [4] | 60,000 | 0 |
Future Funding Commitments | [4] | $ 0 | $ 0 |
[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. | ||
[4] | This limited liability company invests in a broad portfolio of non-investment grade loans, secured and unsecured corporate debt, credit default swaps, reverse repurchase agreements and synthetic indices. The Company does have the ability to sell its interest by providing notice to the fund. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets And Goodwill [Line Items] | |||
Goodwill | $ 6,521,000 | $ 6,521,000 | |
Impairment of goodwill | 0 | 0 | |
Amortization of definite lived intangible assets | $ 500,000 | 500,000 | $ 500,000 |
Weighted average amortization period for definite lived intangible assets | 13 years 7 months 6 days | ||
Indefinite lived intangible assets | $ 19,000,000 | 19,000,000 | |
Impairment of indefinite lived intangible assets | 0 | 0 | |
Definite lived intangible assets | 2,000,000 | 2,500,000 | |
Impairment of definite lived intangible assets | 0 | 0 | |
Specialty Property and Farm, Ranch, & Stable | |||
Intangible Assets And Goodwill [Line Items] | |||
Goodwill | $ 6,500,000 | $ 6,500,000 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | $ 19,000 | $ 19,000 |
Weighted Average Amortization Period | 13 years 7 months 6 days | |
Cost | $ 25,800 | 25,800 |
Accumulated Amortization | 4,838 | 4,309 |
Net Value | 2,000 | 2,500 |
Net Value | 20,962 | 21,491 |
Trademarks | ||
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | 4,800 | 4,800 |
Trade names | ||
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | 4,200 | 4,200 |
State insurance licenses | ||
Acquired Intangible Assets [Line Items] | ||
Cost and Net Value | $ 10,000 | $ 10,000 |
Customer relationships | ||
Acquired Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 15 years | 15 years |
Cost | $ 5,300 | $ 5,300 |
Accumulated Amortization | 3,784 | 3,430 |
Net Value | $ 1,516 | $ 1,870 |
Agent Relationships | ||
Acquired Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 10 years | 10 years |
Cost | $ 900 | $ 900 |
Accumulated Amortization | 535 | 444 |
Net Value | $ 365 | $ 456 |
Trade names | ||
Acquired Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 7 years | 7 years |
Cost | $ 600 | $ 600 |
Accumulated Amortization | 519 | 435 |
Net Value | $ 81 | $ 165 |
Expected Amortization Expense (
Expected Amortization Expense (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | |
2021 | $ 524 |
2022 | 443 |
2023 | 443 |
2024 | 443 |
2025 | $ 108 |
Allowance for Expected Credit_3
Allowance for Expected Credit Losses - Premiums Receivable and Reinsurance Receivables - Schedule of Allowance for Expected Credit Losses Related to Premiums Receivable and Reinsurance Receivables (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Premiums Receivable | |
Beginning balance | $ 2,754 |
Current period provision for expected credit losses | 1,050 |
Write-offs | (904) |
Ending balance | 2,900 |
Reinsurance Receivables | |
Beginning balance | 8,992 |
Current period provision for expected credit losses | 0 |
Write-offs | 0 |
Ending balance | $ 8,992 |
Reinsurance Balances (Detail)
Reinsurance Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Effects of Reinsurance [Line Items] | ||||
Reinsurance receivables, net | $ 88,708 | $ 83,938 | ||
Collateral securing reinsurance receivables | (4,984) | (3,802) | ||
Reinsurance receivables, net of collateral | 83,724 | 80,136 | ||
Prepaid reinsurance premiums | 12,881 | 16,716 | ||
Allowance for Reinsurance Recoverable | ||||
Effects of Reinsurance [Line Items] | ||||
Allowance for uncollectible reinsurance receivables | $ 8,992 | $ 8,992 | $ 8,040 | $ 8,040 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Effects of Reinsurance [Line Items] | ||
Purchase accounting adjustments | $ 0 | $ 400,000 |
Minimum [Member] | ||
Effects of Reinsurance [Line Items] | ||
Unsecured reinsurance receivable percentage of shareholders' equity | 3.00% |
Unsecured Reinsurance Receivabl
Unsecured Reinsurance Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Reinsurance Receivables | $ 88,708 | $ 83,938 |
Munich Re America Corporation | A.M, Best A+ Rating | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Reinsurance Receivables | $ 44,785 |
Effect of Reinsurance on Premiu
Effect of Reinsurance on Premiums Written and Earned (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Insurance [Abstract] | ||||||||||||
Direct business | $ 554,617 | $ 548,618 | $ 495,129 | |||||||||
Reinsurance assumed | 51,986 | 88,243 | 52,768 | |||||||||
Reinsurance ceded | [1] | (58,436) | (74,772) | (75,350) | ||||||||
Net written premiums | 548,167 | 562,089 | 472,547 | |||||||||
Direct business | 560,658 | 527,018 | 483,229 | |||||||||
Reinsurance assumed | 69,312 | 76,893 | 68,156 | |||||||||
Reinsurance ceded | [1] | (62,271) | (78,649) | (83,610) | ||||||||
Net premiums | $ 141,082 | $ 140,302 | $ 141,847 | $ 144,468 | $ 141,660 | $ 133,312 | $ 128,201 | $ 122,089 | $ 567,699 | $ 525,262 | $ 467,775 | |
[1] | Includes ceded written premiums of less than $0.1 million, ($0.3) million, and ($2.1) million and ceded earned premiums of $1.6 million, $2.3 million and $7.3 million to American Bankers Insurance Company for the years ended December 31, 2020, 2019, and 2018, respectively. |
Effect of Reinsurance on Prem_2
Effect of Reinsurance on Premiums Written and Earned (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Ceded earned premiums | [1] | $ 62,271 | $ 78,649 | $ 83,610 |
American Bankers Insurance Company | ||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Ceded written premiums | (300) | (2,100) | ||
Ceded earned premiums | 1,600 | $ 2,300 | $ 7,300 | |
American Bankers Insurance Company | Maximum | ||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Ceded written premiums | $ 100 | |||
[1] | Includes ceded written premiums of less than $0.1 million, ($0.3) million, and ($2.1) million and ceded earned premiums of $1.6 million, $2.3 million and $7.3 million to American Bankers Insurance Company for the years ended December 31, 2020, 2019, and 2018, respectively. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax [Line Items] | |||
Effective income tax expense (benefit) rate | 27.80% | 14.40% | 25.30% |
Alternative minimum tax credit carry forward | $ 11,000,000 | ||
Income tax refunds received | $ 10,987,000 | 170,000 | $ 0 |
Net operating loss carryforwards | 26,220,000 | 21,871,000 | |
Section 163(j) carryforward | 5,580,000 | 9,023,000 | |
Interest and penalties for uncertain tax positions | 0 | $ 0 | $ 0 |
Liabilities for tax-related interest and penalties | 0 | ||
Alternative Minimum Tax Credits | |||
Income Tax [Line Items] | |||
Income tax refunds received | $ 11,000,000 | ||
UNITED STATES | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 21.00% | ||
BERMUDA | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 0.00% | ||
CAYMAN ISLANDS | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 0.00% | ||
UNITED KINGDOM | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 19.00% | ||
IRELAND | Non Trading Income | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 25.00% | ||
IRELAND | Capital Gain | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 33.00% | ||
IRELAND | Trading Income | |||
Income Tax [Line Items] | |||
Statutory income tax rates | 12.50% |
Income (Loss) Before Income Tax
Income (Loss) Before Income Taxes from its Non-U.S. Subsidiaries and U.S. Subsidiaries (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||||||||||
Gross written premiums | $ 606,603 | $ 636,861 | $ 547,897 | ||||||||
Net written premiums | 548,167 | 562,089 | 472,547 | ||||||||
Net earned premiums | $ 141,082 | $ 140,302 | $ 141,847 | $ 144,468 | $ 141,660 | $ 133,312 | $ 128,201 | $ 122,089 | 567,699 | 525,262 | 467,775 |
Net investment income | 8,876 | 11,746 | (2,359) | 10,129 | 9,659 | 11,348 | 13,826 | 7,219 | 28,392 | 42,052 | 46,342 |
Net realized investment gains (losses) | 7,670 | 7,323 | 38,507 | (68,162) | 24,052 | (2,690) | 3,590 | 10,390 | (14,662) | 35,342 | (16,907) |
Other income (loss) | 2,118 | 1,816 | 1,728 | ||||||||
Total revenues | 583,547 | 604,472 | 498,938 | ||||||||
Losses and Expenses: | |||||||||||
Net losses and loss adjustment expenses | 94,109 | 97,148 | 67,297 | 77,647 | 73,423 | 73,583 | 70,075 | 58,321 | 336,201 | 275,402 | 334,625 |
Acquisition costs and other underwriting expenses | 52,349 | 53,268 | 53,578 | 56,412 | 54,760 | 53,366 | 50,534 | 49,743 | 215,607 | 208,403 | 190,778 |
Corporate and other operating expenses | 41,998 | 18,888 | 29,766 | ||||||||
Interest expense | 15,792 | 20,022 | 19,694 | ||||||||
Loss on extinguishment of debt | 3,060 | 0 | 0 | ||||||||
Income (loss) before income taxes | $ 1,259 | $ (18,379) | $ 44,556 | $ (56,547) | $ 35,610 | $ 6,404 | $ 15,849 | $ 23,894 | (29,111) | 81,757 | (75,925) |
Non-U.S. Subsidiaries | |||||||||||
Revenues: | |||||||||||
Gross written premiums | 46,654 | 88,282 | 48,050 | ||||||||
Net written premiums | 46,654 | 88,285 | 48,041 | ||||||||
Net earned premiums | 53,384 | 75,961 | 135,826 | ||||||||
Net investment income | 17,186 | 29,307 | 49,699 | ||||||||
Net realized investment gains (losses) | (3,867) | 3,121 | (669) | ||||||||
Other income (loss) | 148 | (165) | (210) | ||||||||
Total revenues | 66,851 | 108,224 | 184,646 | ||||||||
Losses and Expenses: | |||||||||||
Net losses and loss adjustment expenses | 12,874 | 36,502 | 91,178 | ||||||||
Acquisition costs and other underwriting expenses | 17,827 | 23,610 | 57,487 | ||||||||
Corporate and other operating expenses | 23,357 | 7,462 | 12,234 | ||||||||
Interest expense | 869 | 1,409 | 7,108 | ||||||||
Loss on extinguishment of debt | 3,060 | ||||||||||
Income (loss) before income taxes | 8,864 | 39,241 | 16,639 | ||||||||
U.S. Subsidiaries | |||||||||||
Revenues: | |||||||||||
Gross written premiums | 559,949 | 548,579 | 499,847 | ||||||||
Net written premiums | 501,513 | 473,804 | 424,506 | ||||||||
Net earned premiums | 514,315 | 449,301 | 331,949 | ||||||||
Net investment income | 20,348 | 26,816 | 27,294 | ||||||||
Net realized investment gains (losses) | (10,795) | 32,221 | (16,238) | ||||||||
Other income (loss) | 1,970 | 1,981 | 1,938 | ||||||||
Total revenues | 525,838 | 510,319 | 344,943 | ||||||||
Losses and Expenses: | |||||||||||
Net losses and loss adjustment expenses | 323,327 | 238,900 | 243,447 | ||||||||
Acquisition costs and other underwriting expenses | 197,780 | 184,793 | 133,291 | ||||||||
Corporate and other operating expenses | 18,641 | 11,426 | 17,532 | ||||||||
Interest expense | 24,065 | 32,684 | 43,237 | ||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Income (loss) before income taxes | (37,975) | 42,516 | (92,564) | ||||||||
Eliminations | |||||||||||
Revenues: | |||||||||||
Gross written premiums | 0 | 0 | 0 | ||||||||
Net written premiums | 0 | 0 | 0 | ||||||||
Net earned premiums | 0 | 0 | 0 | ||||||||
Net investment income | (9,142) | (14,071) | (30,651) | ||||||||
Net realized investment gains (losses) | 0 | 0 | 0 | ||||||||
Other income (loss) | 0 | 0 | 0 | ||||||||
Total revenues | (9,142) | (14,071) | (30,651) | ||||||||
Losses and Expenses: | |||||||||||
Net losses and loss adjustment expenses | 0 | 0 | 0 | ||||||||
Acquisition costs and other underwriting expenses | 0 | 0 | 0 | ||||||||
Corporate and other operating expenses | 0 | 0 | 0 | ||||||||
Interest expense | (9,142) | (14,071) | (30,651) | ||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Income (loss) before income taxes | $ 0 | $ 0 | $ 0 |
Components of Income Tax Expens
Components of Income Tax Expenses (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current income tax expense (benefit): | |||
Foreign | $ 0 | $ (41) | $ 325 |
U.S. Federal | 163 | 0 | 0 |
Total current income tax expense (benefit) | 163 | (41) | 325 |
Deferred income tax expense (benefit): | |||
U.S. Federal | (8,268) | 11,783 | (19,554) |
Total deferred income tax expense (benefit) | (8,268) | 11,783 | (19,554) |
Total income tax expense (benefit) | $ (8,105) | $ 11,742 | $ (19,229) |
Differences in Tax Provision fo
Differences in Tax Provision for Financial Statement Purposes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Expected tax provision at weighted average | $ (7,975) | $ 8,928 | $ (19,112) |
Adjustments: | |||
Tax exempt interest | (2) | (3) | (6) |
Dividend exclusion | (202) | (284) | (279) |
Non-deductible interest | 1,773 | 2,714 | 356 |
Change in tax status | (1,704) | 0 | 0 |
Parent income treated as partnership for tax | (533) | 0 | 0 |
Other | 538 | 387 | (188) |
Total income tax expense (benefit) | $ (8,105) | $ 11,742 | $ (19,229) |
Expected tax provision at weighted average | 27.40% | 10.90% | 25.20% |
Adjustments: | |||
Tax exempt interest, % of Pre-Tax Income | 0.00% | 0.00% | 0.00% |
Dividend exclusion, % of Pre-Tax Income | 0.70% | (0.30%) | 0.40% |
Non-deductible interest, % of Pre-Tax Income | (6.10%) | 3.30% | (0.50%) |
Change in tax status, % of Pre-Tax Income | 5.80% | 0.00% | 0.00% |
Parent income treated as partnership for tax, % of Pre-Tax Income | 1.80% | 0.00% | 0.00% |
Other, % of Pre-Tax Income | (1.80%) | 0.50% | 0.20% |
Effective income tax expense (benefit) | 27.80% | 14.40% | 25.30% |
Tax Effects of Temporary Differ
Tax Effects of Temporary Differences That Give Rise to Significant Portions of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Discounted unpaid losses and loss adjustment expenses | $ 7,490 | $ 3,681 |
Unearned premiums | 11,703 | 10,234 |
Section 163(j) carryforward | 5,580 | 9,023 |
Net operating loss carryforward | 26,220 | 21,871 |
Partnership K1 basis differences | 796 | 1,703 |
Loss on derivative instruments | 3,450 | 2,158 |
Investment impairments | 147 | 1 |
Stock options | 1,546 | 1,352 |
Stat-to-GAAP reinsurance reserve | 1,517 | 874 |
Depreciation and amortization | 863 | 0 |
Other | 1,860 | 1,840 |
Total deferred tax assets | 61,172 | 52,737 |
Deferred tax liabilities: | ||
Intangible assets | 4,505 | 3,112 |
Unrealized gain on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income | 7,996 | 2,950 |
Unrealized gain on equity securities | 182 | 3,438 |
Deferred acquisition costs | 13,691 | 11,608 |
Depreciation and amortization | 0 | 436 |
Other | 533 | 116 |
Total deferred tax liabilities | 26,907 | 21,660 |
Total net deferred tax assets | $ 34,265 | $ 31,077 |
Summarized Activity in Liabilit
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Insurance [Abstract] | |||
Balance at beginning of period | $ 630,181 | $ 680,031 | $ 634,664 |
Less: Ceded reinsurance receivables | 76,273 | 109,342 | 97,243 |
Net balance at beginning of period | 553,908 | 570,689 | 537,421 |
Incurred losses and loss adjustment expenses related to: | |||
Current year | 367,739 | 308,211 | 363,423 |
Prior years | (31,538) | (32,809) | (28,798) |
Total incurred losses and loss adjustment expenses | 336,201 | 275,402 | 334,625 |
Paid losses and loss adjustment expenses related to: | |||
Current year | 183,109 | 146,128 | 173,545 |
Prior years | 126,347 | 146,055 | 127,812 |
Total paid losses and loss adjustment expenses | 309,456 | 292,183 | 301,357 |
Net balance at end of period | 580,653 | 553,908 | 570,689 |
Plus: Ceded reinsurance receivables | 82,158 | 76,273 | 109,342 |
Balance at end of period | $ 662,811 | $ 630,181 | $ 680,031 |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 08, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | $ (31,538) | $ (32,809) | $ (28,798) | ||
Unpaid losses and loss adjustment expense reserves | 662,811 | 630,181 | 680,031 | $ 634,664 | |
Unpaid losses and loss adjustment expense reserves, net | 580,653 | 553,908 | 570,689 | 537,421 | |
Unpaid losses and loss adjustment expense reserves | $ 28,679 | $ 29,033 | $ 29,524 | $ 30,124 | |
Survival ratio on a gross basis for open A&E claims, periods | 35 years 6 months | 32 years 1 month 6 days | 24 years 2 months 12 days | ||
Survival ratio on net basis for open A&E claims, periods | 59 years 6 months | 47 years 9 months 18 days | 35 years 8 months 12 days | ||
Global Indemnity Group, LLC | American Reliable Insurance Company | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Reserve Settlement | $ 41,500 | ||||
Proceeds for loss and loss adjustment expenses paid | 38,800 | ||||
Proceeds for accrued interest | 6,200 | ||||
Payment for the difference between the agreed upon purchase price and actual settlement | $ 3,500 | ||||
Construction Defect | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Unpaid losses and loss adjustment expense reserves | $ 31,400 | $ 36,900 | |||
Unpaid losses and loss adjustment expense reserves, net | 29,800 | 35,400 | |||
IBNR Reserves | Asbestos | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Unpaid losses and loss adjustment expense reserves | 27,300 | 27,100 | $ 27,400 | ||
Case Reserves | Asbestos | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Unpaid losses and loss adjustment expense reserves | 1,400 | 2,000 | 2,100 | ||
Commercial Specialty | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (17,600) | (18,400) | (7,300) | ||
Commercial Specialty | General Liability | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (20,400) | (14,500) | |||
Commercial Specialty | General Liability | Accident Years 2002 through 2004, 2006 through 2017 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (1,300) | ||||
Commercial Specialty | General Liability | Construction Defect | Accident Years 2005 through 2009, 2012, 2015 through 2017 | |||||
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 | Construction Defect | Accident Years 2004 through 2018 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (3,500) | ||||
Commercial Specialty | General Liability | Other General Liability | Accident Years 2005 through 2015 and 2016 through 2019 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (13,800) | ||||
Commercial Specialty | General Liability | Other General Liability | Accident Years 1999 through 2017 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (11,000) | ||||
Commercial Specialty | Professional Liability | Accident Years 2006 through 2010 and 2019 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (1,800) | ||||
Commercial Specialty | Professional Liability | Accident Years 2007 Through 2011 | |||||
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 2008, 2011 and 2014 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (900) | ||||
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 through 2013, 2015 and 2016 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (2,000) | ||||
Commercial Specialty | Commercial Auto Liability | Accident Years 2010, 2012, 2013, 2015 and 2017 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (3,200) | ||||
Commercial Specialty | Property Lines | Accident Year 2013 through 2018 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | 5,800 | ||||
Commercial Specialty | Property Lines | Accident Years 2010 and 2012 through 2018 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (900) | ||||
Commercial Specialty | Property Lines | Accident Years 2007 and 2014 through 2017 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (1,900) | ||||
Commercial Specialty | Workers Compensation | Accident Years 2012 and Accident Years Prior to 2005 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (200) | ||||
Commercial Specialty | Reinsurance | General Liability | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | 1,000 | ||||
Specialty Property | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (6,600) | (10,800) | (7,900) | ||
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 | (2,100) | ||||
Specialty Property | General Liability | Accident Years 2014 through 2016 and 2018 and 2010 and 2017 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (600) | ||||
Specialty Property | General Liability | Accident Years 2011 through 2014 and 2016 through 2017 and 2015 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (2,200) | ||||
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 | (4,500) | ||||
Specialty Property | Property Lines | Accident Years 2014 through 2017 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (5,700) | ||||
Specialty Property | Property Lines | Catastrophe | Accident Year 2015 through 2018 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (10,200) | ||||
Farm, Ranch & Stable | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (2,300) | (5,500) | (4,700) | ||
Farm, Ranch & Stable | Property Lines | Accident Year 2016 Through 2019 | |||||
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 | Property Lines | Accident Year 2015 through 2018 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (3,900) | ||||
Farm, Ranch & Stable | Property Lines | Accident Years 2014 through 2017 | |||||
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 | Liability Lines | Accident Year 2009 and 2015 Through 2019 and 2007 and 2013 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (300) | ||||
Farm, Ranch & Stable | Liability Lines | Accident Year 2015 through 2017, 2013, 2014 and 2018 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (1,600) | ||||
Farm, Ranch & Stable | Liability Lines | Accident Years 2012, 2014, 2016 and 2017, 2007 and 2013 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (3,400) | ||||
Reinsurance Operations | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (5,000) | 1,900 | (8,900) | ||
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) | ||||
Reinsurance Operations | Professional Liability | Accident Years 2008, 2010 and 2013 through 2015 and 2007 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (3,100) | ||||
Reinsurance Operations | Property Lines | Accident Years 2009 through 2019 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | (2,900) | ||||
Reinsurance Operations | Property Lines | Accident Years 2016 through 2018 and 2011 through 2015 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | 5,000 | ||||
Reinsurance Operations | Property Lines | Accident Years 2007, 2009 through 2017 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | $ (8,900) | ||||
Reinsurance Operations | Property Lines | Typhoon Jebi | Accident Years 2018 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | $ 9,000 | ||||
Reinsurance Operations | Liability & Workers Compensation Lines | Accident Years 2009 through 2012 | |||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||
Changes in prior year reserve | $ (400) |
Gross Reserves for Asbestos and
Gross Reserves for Asbestos and Environmental Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Insurance [Abstract] | |||
Gross reserve for A&E losses and loss adjustment expenses – beginning of period | $ 48,825 | $ 50,445 | $ 51,873 |
Plus: Change in incurred losses and loss adjustment expenses | (259) | (2) | (1) |
Less: Payments | 973 | 1,618 | 1,427 |
Gross reserves for A&E losses and loss adjustment expenses – end of period | $ 47,593 | $ 48,825 | $ 50,445 |
Net Reserves for Asbestos and E
Net Reserves for Asbestos and Environmental Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Insurance [Abstract] | |||
Net reserve for A&E losses and loss adjustment expenses - beginning of period | $ 29,033 | $ 29,524 | $ 30,124 |
Plus: Change in incurred losses and loss adjustment expenses | 1 | (1) | 0 |
Less: Payments | 355 | 490 | 600 |
Net reserves for A&E losses and loss adjustment expenses - end of period | $ 28,679 | $ 29,033 | $ 29,524 |
Incurred Claims and Allocated C
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Detail) $ in Thousands | Dec. 31, 2020USD ($)Claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | |
Commercial Specialty | Property Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 206,592 | ||||||||||
Commercial Specialty | Property Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 66,925 | $ 62,219 | $ 60,555 | ||||||||
IBNR | [1] | $ 5,114 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,698 | ||||||||||
Commercial Specialty | Property Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 54,974 | 54,853 | |||||||||
IBNR | [1] | $ 2,543 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,903 | ||||||||||
Commercial Specialty | Property Insurance | Accident Year 2020 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 84,693 | ||||||||||
IBNR | [1] | $ 14,729 | |||||||||
Cumulative Number of Reported Claims | Claim | 3,812 | ||||||||||
Commercial Specialty | Casualty Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 607,876 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 57,766 | 57,457 | 57,879 | ||||||||
IBNR | [1] | $ 18,596 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,223 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 68,938 | 68,952 | |||||||||
IBNR | [1] | $ 33,346 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,340 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2020 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 83,372 | ||||||||||
IBNR | [1] | $ 64,738 | |||||||||
Cumulative Number of Reported Claims | Claim | 1,778 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 82,777 | 83,825 | 87,045 | $ 84,269 | $ 96,361 | $ 108,720 | $ 115,193 | $ 117,288 | $ 117,602 | $ 115,441 | |
IBNR | [1] | $ 3,163 | |||||||||
Cumulative Number of Reported Claims | Claim | 3,895 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 45,404 | 47,966 | 50,022 | 52,504 | 55,137 | 63,359 | 65,637 | 65,911 | 61,340 | ||
IBNR | [1] | $ 3,567 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,406 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 56,696 | 58,756 | 61,487 | 64,877 | 66,301 | 67,702 | 68,089 | 63,807 | |||
IBNR | [1] | $ 2,248 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,555 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 50,311 | 53,955 | 56,129 | 56,837 | 58,042 | 60,227 | 61,325 | ||||
IBNR | [1] | $ 4,619 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,354 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 55,821 | 59,568 | 58,392 | 57,775 | 56,620 | 57,262 | |||||
IBNR | [1] | $ 5,233 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,112 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 52,564 | 51,893 | 53,584 | 53,776 | 54,130 | ||||||
IBNR | [1] | $ 6,607 | |||||||||
Cumulative Number of Reported Claims | Claim | 1,948 | ||||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 54,227 | 53,385 | 54,572 | 54,338 | |||||||
IBNR | [1] | $ 8,316 | |||||||||
Cumulative Number of Reported Claims | Claim | 1,854 | ||||||||||
Specialty Property | Property Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 175,407 | ||||||||||
Specialty Property | Property Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 80,721 | 79,798 | |||||||||
IBNR | [1] | $ 2,722 | |||||||||
Cumulative Number of Reported Claims | Claim | 10,379 | ||||||||||
Specialty Property | Property Insurance | Accident Year 2020 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 94,686 | ||||||||||
IBNR | [1] | $ 5,532 | |||||||||
Cumulative Number of Reported Claims | Claim | 11,049 | ||||||||||
Specialty Property | Casualty Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 37,395 | ||||||||||
Specialty Property | Casualty Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 4,875 | 5,028 | 5,242 | ||||||||
IBNR | [1] | $ 2,467 | |||||||||
Cumulative Number of Reported Claims | Claim | 339 | ||||||||||
Specialty Property | Casualty Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 3,948 | 3,986 | |||||||||
IBNR | [1] | $ 2,170 | |||||||||
Cumulative Number of Reported Claims | Claim | 282 | ||||||||||
Specialty Property | Casualty Insurance | Accident Year 2020 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 3,503 | ||||||||||
IBNR | [1] | $ 2,386 | |||||||||
Cumulative Number of Reported Claims | Claim | 202 | ||||||||||
Specialty Property | Casualty Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 11,208 | 11,412 | 11,656 | 11,230 | 8,455 | 6,875 | |||||
IBNR | [1] | $ 793 | |||||||||
Cumulative Number of Reported Claims | Claim | 857 | ||||||||||
Specialty Property | Casualty Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 6,495 | 6,713 | 7,613 | 8,068 | 8,249 | ||||||
IBNR | [1] | $ 1,249 | |||||||||
Cumulative Number of Reported Claims | Claim | 855 | ||||||||||
Specialty Property | Casualty Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 7,366 | 7,515 | 6,966 | 7,213 | |||||||
IBNR | [1] | $ 932 | |||||||||
Cumulative Number of Reported Claims | Claim | 506 | ||||||||||
Farm, Ranch & Stable | Property Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 75,576 | ||||||||||
Farm, Ranch & Stable | Property Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 37,350 | 37,120 | |||||||||
IBNR | [1] | $ 1,406 | |||||||||
Cumulative Number of Reported Claims | Claim | 3,023 | ||||||||||
Farm, Ranch & Stable | Property Insurance | Accident Year 2020 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 38,226 | ||||||||||
IBNR | [1] | $ 1,810 | |||||||||
Cumulative Number of Reported Claims | Claim | 2,821 | ||||||||||
Farm, Ranch & Stable | Casualty Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 61,136 | ||||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 10,695 | 10,559 | 9,934 | ||||||||
IBNR | [1] | $ 1,998 | |||||||||
Cumulative Number of Reported Claims | Claim | 548 | ||||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 9,746 | 9,781 | |||||||||
IBNR | [1] | $ 4,616 | |||||||||
Cumulative Number of Reported Claims | Claim | 504 | ||||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2020 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 9,963 | ||||||||||
IBNR | [1] | $ 7,689 | |||||||||
Cumulative Number of Reported Claims | Claim | 404 | ||||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 10,145 | 10,383 | 10,664 | 10,621 | 12,052 | 12,055 | |||||
IBNR | [1] | $ 1,059 | |||||||||
Cumulative Number of Reported Claims | Claim | 475 | ||||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 10,420 | 10,507 | 11,977 | 13,005 | 13,226 | ||||||
IBNR | [1] | $ 1,495 | |||||||||
Cumulative Number of Reported Claims | Claim | 545 | ||||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 10,167 | 10,600 | 12,171 | 12,786 | |||||||
IBNR | [1] | $ 3,493 | |||||||||
Cumulative Number of Reported Claims | Claim | 488 | ||||||||||
Reinsurance Operations | Property Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 196,540 | ||||||||||
Reinsurance Operations | Property Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 65,190 | 66,314 | 59,022 | ||||||||
IBNR | [1] | $ 11,107 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Property Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 36,896 | 32,442 | |||||||||
IBNR | [1] | $ 9,576 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Property Insurance | Accident Year 2020 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 13,751 | ||||||||||
IBNR | [1] | $ 9,209 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Property Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 13,170 | 13,554 | 14,301 | 13,590 | 14,139 | 18,861 | 21,787 | ||||
IBNR | [1] | $ 330 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Property Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 8,434 | 9,050 | 9,945 | 12,526 | 16,738 | 19,877 | |||||
IBNR | [1] | $ 602 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Property Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 11,902 | 13,021 | 12,497 | 22,485 | 23,646 | ||||||
IBNR | [1] | $ 1,176 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Property Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 47,197 | 51,711 | 50,032 | 43,782 | |||||||
IBNR | [1] | $ 5,042 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Casualty Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 117,019 | ||||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | 5,573 | 5,573 | 5,573 | ||||||||
IBNR | [1] | $ 5,573 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 13,686 | 13,686 | |||||||||
IBNR | [1] | $ 10,936 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2020 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 30,398 | ||||||||||
IBNR | [1] | $ 30,252 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 41,885 | 41,826 | 42,235 | 42,968 | 43,657 | 46,510 | 47,980 | 44,692 | 48,846 | $ 45,726 | |
IBNR | [1] | $ 590 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 16,301 | 16,449 | 16,982 | 17,348 | 17,360 | 17,579 | 17,123 | 15,624 | $ 15,865 | ||
IBNR | [1] | $ 300 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 98 | 112 | 974 | 974 | 1,013 | 1,172 | 1,262 | $ 1,224 | |||
IBNR | [1] | $ 1 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 2 | 593 | 1,957 | 1,957 | 2,060 | 2,095 | $ 1,988 | ||||
IBNR | [1] | $ 0 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 1,091 | 2,180 | 2,780 | 2,780 | 2,911 | $ 2,908 | |||||
IBNR | [1] | $ 1,090 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 3,627 | 3,627 | 3,627 | 3,627 | $ 3,627 | ||||||
IBNR | [1] | $ 3,627 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance | $ 4,358 | $ 4,358 | $ 4,358 | $ 4,358 | |||||||
IBNR | [1] | $ 4,356 | |||||||||
Cumulative Number of Reported Claims | Claim | 0 | ||||||||||
[1] | Incurred-but-not-reported liabilities plus expected development on reported claims |
Supplementary Information about
Supplementary Information about Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Claims Development [Line Items] | ||||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | $ 555,704 | |||||||||
Commercial Specialty | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 156,206 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 52,730 | |||||||||
Commercial Specialty | Property Insurance | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 56,350 | $ 54,400 | $ 36,161 | |||||||
Commercial Specialty | Property Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 48,737 | 34,921 | ||||||||
Commercial Specialty | Property Insurance | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 51,119 | |||||||||
Commercial Specialty | Property Insurance | All outstanding liabilities before 2018, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 2,344 | |||||||||
Commercial Specialty | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 378,645 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 287,492 | |||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 22,065 | 13,827 | 4,297 | |||||||
Commercial Specialty | Casualty Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 13,954 | 5,174 | ||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,466 | |||||||||
Commercial Specialty | Casualty Insurance | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 79,121 | 78,595 | 77,675 | $ 74,839 | $ 72,087 | $ 64,722 | $ 56,562 | $ 41,282 | $ 21,325 | $ 5,451 |
Commercial Specialty | Casualty Insurance | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 40,877 | 40,595 | 39,899 | 39,596 | 36,360 | 31,231 | 22,456 | 11,884 | 3,500 | |
Commercial Specialty | Casualty Insurance | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 52,991 | 52,265 | 50,964 | 46,272 | 38,438 | 29,510 | 17,881 | 6,400 | ||
Commercial Specialty | Casualty Insurance | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 44,842 | 42,517 | 39,361 | 33,697 | 26,268 | 15,690 | 3,968 | |||
Commercial Specialty | Casualty Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 45,661 | 42,543 | 35,816 | 25,147 | 14,584 | 3,336 | ||||
Commercial Specialty | Casualty Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 40,531 | 34,872 | 21,966 | 14,027 | 4,135 | |||||
Commercial Specialty | Casualty Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 33,137 | 22,988 | 12,711 | 4,914 | ||||||
Commercial Specialty | Casualty Insurance | All outstanding liabilities before 2011, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 58,261 | |||||||||
Specialty Property | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 161,456 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 19,290 | |||||||||
Specialty Property | Property Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 76,942 | 66,786 | ||||||||
Specialty Property | Property Insurance | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 84,514 | |||||||||
Specialty Property | Property Insurance | All outstanding liabilities before 2019, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 5,339 | |||||||||
Specialty Property | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 24,527 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 13,529 | |||||||||
Specialty Property | Casualty Insurance | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,844 | 1,339 | 248 | |||||||
Specialty Property | Casualty Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,221 | 397 | ||||||||
Specialty Property | Casualty Insurance | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 552 | |||||||||
Specialty Property | Casualty Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 10,136 | 10,050 | 9,129 | 6,698 | 4,979 | 1,301 | ||||
Specialty Property | Casualty Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,971 | 4,856 | 3,889 | 2,654 | 1,165 | |||||
Specialty Property | Casualty Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,803 | 4,502 | 2,658 | 979 | ||||||
Specialty Property | Casualty Insurance | All outstanding liabilities before 2015, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 661 | |||||||||
Farm, Ranch & Stable | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 68,059 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 8,731 | |||||||||
Farm, Ranch & Stable | Property Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 35,338 | 31,461 | ||||||||
Farm, Ranch & Stable | Property Insurance | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 32,721 | |||||||||
Farm, Ranch & Stable | Property Insurance | All outstanding liabilities before 2019, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 1,214 | |||||||||
Farm, Ranch & Stable | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 34,881 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 27,385 | |||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 7,125 | 3,225 | 1,092 | |||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,853 | 1,626 | ||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,075 | |||||||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 9,057 | 8,481 | 6,986 | 6,228 | 3,778 | 2,138 | ||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 7,615 | 7,069 | 5,954 | 4,231 | 2,342 | |||||
Farm, Ranch & Stable | Casualty Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 6,156 | 4,242 | 2,145 | 1,153 | ||||||
Farm, Ranch & Stable | Casualty Insurance | All outstanding liabilities before 2015, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 1,130 | |||||||||
Reinsurance Operations | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 112,647 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 84,621 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 36,936 | 21,608 | 21 | |||||||
Reinsurance Operations | Property Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 13,033 | 139 | ||||||||
Reinsurance Operations | Property Insurance | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 561 | |||||||||
Reinsurance Operations | Property Insurance | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 12,558 | 12,480 | 12,339 | 11,182 | 10,460 | 9,035 | 2,243 | |||
Reinsurance Operations | Property Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 7,492 | 7,411 | 7,139 | 6,768 | 5,163 | 742 | ||||
Reinsurance Operations | Property Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 9,399 | 8,514 | 7,161 | 5,704 | 2,071 | |||||
Reinsurance Operations | Property Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 32,668 | 28,079 | 20,609 | 2,152 | ||||||
Reinsurance Operations | Property Insurance | All outstanding liabilities before 2014, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | 728 | |||||||||
Reinsurance Operations | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 57,366 | |||||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 61,926 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 801 | 27 | ||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 49 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 40,693 | 40,476 | 40,303 | 40,079 | 39,815 | 38,907 | 36,020 | 28,495 | 20,072 | $ 7,968 |
Reinsurance Operations | Casualty Insurance | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 15,749 | 15,691 | 15,625 | 15,790 | 15,696 | 15,534 | 11,658 | 9,435 | $ 5,312 | |
Reinsurance Operations | Casualty Insurance | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 70 | 71 | 65 | 65 | 65 | 62 | 50 | $ 123 | ||
Reinsurance Operations | Casualty Insurance | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1 | 1 | 1 | 1 | 50 | 47 | $ 88 | |||
Reinsurance Operations | Casualty Insurance | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1 | 1 | 1 | $ 1 | $ 128 | $ 107 | ||||
Reinsurance Operations | Casualty Insurance | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | |||||||||
Reinsurance Operations | Casualty Insurance | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2 | $ 2 | $ 2 | |||||||
Reinsurance Operations | Casualty Insurance | All outstanding liabilities before 2011, net of reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
All outstanding liabilities, net of reinsurance | $ 2,273 |
Supplementary Information of Av
Supplementary Information of Average Historical Claims (Detail) | Dec. 31, 2020 | |
Commercial Specialty | Property Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 59.30% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 26.20% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 2.90% | |
Commercial Specialty | Casualty Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 7.80% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 18.20% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 19.50% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 18.70% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 11.50% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 7.20% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year seven | 2.70% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year eight | 2.10% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year nine | 0.90% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year ten | 0.60% | |
Specialty Property | Property Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 86.00% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 12.60% | |
Specialty Property | Casualty Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 12.30% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 24.40% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 17.40% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 18.10% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 5.00% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 0.80% | |
Farm, Ranch & Stable | Property Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 84.90% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 10.40% | |
Farm, Ranch & Stable | Casualty Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 15.40% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 17.40% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 24.40% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 12.30% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 10.00% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 5.70% | |
Reinsurance Operations | Property Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 7.50% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 40.30% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 16.30% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 7.70% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 6.50% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 1.00% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year seven | 0.60% | |
Reinsurance Operations | Casualty Insurance | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 408.40% | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | (204.00%) | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 23.80% | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | (305.20%) | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | (1.20%) | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 0.60% | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year seven | 1.50% | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year eight | (0.10%) | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year nine | 0.40% | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year ten | 0.50% | [1],[2] |
[1] | May not be indicative of future average annual percentage payout of incurred claims due to a change in mix of business | |
[2] | The payout patterns are calculated using simple averages consistent with last year’s calculation methodology. However, these payout patterns based on simple averages look unusual given the change in estimate of ultimate losses for accident years 2013 through 2015 during the year and due to very minimal yet volatile payment activity for those accident years. Using a weighted average approach would produce smoother payout patterns as less weight is given to the accident years with minimal paid losses. The resulting volume weighted ten year annual payout pattern, for ages one through ten would be 11.7%, 19.5%, 14.4%, 16.9%, 4.8%, 1.7%, 0.2%, 0.5%, 0.4%, and 0.5%, respectively. |
Supplementary Information of _2
Supplementary Information of Average Historical Claims (Parenthetical) (Detail) - Reinsurance Operations - Casualty Insurance | Dec. 31, 2020 | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 408.40% | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | (204.00%) | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 23.80% | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | (305.20%) | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | (1.20%) | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 0.60% | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year seven | 1.50% | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year eight | (0.10%) | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year nine | 0.40% | [1],[2] |
Average annual percentage payout of incurred claims by age, net of reinsurance year ten | 0.50% | [1],[2] |
Weighted Average | ||
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | ||
Average annual percentage payout of incurred claims by age, net of reinsurance year one | 11.70% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year two | 19.50% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year three | 14.40% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year four | 16.90% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year five | 4.80% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year six | 1.70% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year seven | 0.20% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year eight | 0.50% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year nine | 0.40% | |
Average annual percentage payout of incurred claims by age, net of reinsurance year ten | 0.50% | |
[1] | May not be indicative of future average annual percentage payout of incurred claims due to a change in mix of business | |
[2] | The payout patterns are calculated using simple averages consistent with last year’s calculation methodology. However, these payout patterns based on simple averages look unusual given the change in estimate of ultimate losses for accident years 2013 through 2015 during the year and due to very minimal yet volatile payment activity for those accident years. Using a weighted average approach would produce smoother payout patterns as less weight is given to the accident years with minimal paid losses. The resulting volume weighted ten year annual payout pattern, for ages one through ten would be 11.7%, 19.5%, 14.4%, 16.9%, 4.8%, 1.7%, 0.2%, 0.5%, 0.4%, and 0.5%, respectively. |
Reconciliation of Net Incurred
Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and Loss Adjustment Expenses in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | $ 555,704 | |||
Reinsurance recoverable on unpaid claims | 80,035 | |||
Total other outstanding liabilities | 27,072 | |||
Total gross liability for unpaid losses and loss adjustment expenses | 662,811 | $ 630,181 | $ 680,031 | $ 634,664 |
Commercial Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Ceded Allowance | 8,992 | |||
Unallocated claims adjustment expenses | 14,967 | |||
Purchase accounting adjustment | 0 | |||
Loss Clearing | (2,034) | |||
Commercial Specialty | Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 52,730 | |||
Reinsurance recoverable on unpaid claims | 18,362 | |||
Commercial Specialty | Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 287,492 | |||
Reinsurance recoverable on unpaid claims | 44,483 | |||
Specialty Property | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unallocated claims adjustment expenses | 926 | |||
Loss Clearing | 0 | |||
Fronted business ceded to Assurant | 2,098 | |||
Specialty Property | Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 19,290 | |||
Reinsurance recoverable on unpaid claims | 7,089 | |||
Specialty Property | Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 13,529 | |||
Reinsurance recoverable on unpaid claims | 2,334 | |||
Farm, Ranch & Stable | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Ceded Allowance | 0 | |||
Unallocated claims adjustment expenses | 959 | |||
Loss Clearing | 0 | |||
Farm, Ranch & Stable | Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 8,731 | |||
Reinsurance recoverable on unpaid claims | 1,318 | |||
Farm, Ranch & Stable | Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 27,385 | |||
Reinsurance recoverable on unpaid claims | 6,449 | |||
Reinsurance Operations | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unallocated claims adjustment expenses | 356 | |||
Other | 808 | |||
Reinsurance Operations | Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 84,621 | |||
Reinsurance recoverable on unpaid claims | 0 | |||
Reinsurance Operations | Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 61,926 | |||
Reinsurance recoverable on unpaid claims | $ 0 |
Outstanding Debt (Detail)
Outstanding Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Debt | $ 126,288 | $ 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] | 126,288 | 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 $3.1 million. In August 2020, the Company redeemed all of its outstanding 7.75% subordinated notes due 2045 and unamortized debt issuance cost of $3.1 million was written off and included in the consolidated statements of operations as loss on the extinguishment of debt. | ||
[2] | As of December 31, 2020 and 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 $3.9 million, respectively. | ||
[3] | The Margin Borrowing Facility was fully paid down in August 2020. |
Outstanding Debt (Parenthetical
Outstanding Debt (Parenthetical) (Detail) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2020 | Apr. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
7.75% Subordinated Notes due 2045 | ||||
Debt Instrument [Line Items] | ||||
Subordinated Notes percentage | 7.75% | 7.75% | 7.75% | |
Subordinated Notes due date | 2045 | 2045 | 2045 | 2045 |
7.875% Subordinated Notes due 2047 | ||||
Debt Instrument [Line Items] | ||||
Subordinated Notes percentage | 7.875% | 7.875% | ||
Subordinated Notes due date | 2047 | 2047 | 2047 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Mar. 23, 2017 | Aug. 31, 2020 | Apr. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 30, 2017 | |
Debt Instrument [Line Items] | ||||||||
Debt | $ 126,288,000 | $ 296,640,000 | ||||||
Interest expense | 15,792,000 | 20,022,000 | $ 19,694,000 | |||||
Redemption of aggregate principal amount | 100,000,000 | 0 | 0 | |||||
Loss on extinguishment of debt | $ (3,060,000) | 0 | 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] | ||||||||
Debt | [1] | $ 0 | $ 96,864,000 | |||||
Stated interest rate | 7.75% | 7.75% | 7.75% | |||||
Interest expense | $ 4,900,000 | $ 7,900,000 | 7,900,000 | |||||
Redemption of aggregate principal amount | $ 100,000,000 | |||||||
Subordinated Notes due date | 2045 | 2045 | 2045 | 2045 | ||||
Loss on extinguishment of debt | $ 3,100,000 | |||||||
7.875% Subordinated Notes due 2047 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt | [2] | $ 126,288,000 | $ 126,147,000 | |||||
Stated interest rate | 7.875% | 7.875% | ||||||
Interest expense | $ 10,400,000 | $ 10,400,000 | 10,400,000 | |||||
Subordinated Notes due date | 2047 | 2047 | 2047 | |||||
Debt instrument, face amount | $ 120,000,000 | $ 130,000,000 | ||||||
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 | $ 18,000,000 | |||||||
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 | |||||||
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] | ||||||||
Debt | [3] | $ 0 | $ 73,629,000 | |||||
Stated interest rate | 0.80% | 1.90% | ||||||
Collateral deposited to support borrowing | $ 0 | $ 88,200,000 | ||||||
Debt Securities, Available-for-sale, Restriction Type [Extensible List] | us-gaap:CollateralPledgedMember | us-gaap:CollateralPledgedMember | ||||||
Interest expense | $ 500,000 | $ 1,800,000 | $ 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 $3.1 million. In August 2020, the Company redeemed all of its outstanding 7.75% subordinated notes due 2045 and unamortized debt issuance cost of $3.1 million was written off and included in the consolidated statements of operations as loss on the extinguishment of debt. | |||||||
[2] | As of December 31, 2020 and 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 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Net Carrying Amount | $ 126,288 | $ 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 | (3,712) | (3,853) | |
Net Carrying Amount | [2] | 126,288 | 126,147 |
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 130,000 | 230,000 | |
Unamortized Debt Issuance Costs | (3,712) | (6,989) | |
Net Carrying Amount | $ 126,288 | $ 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 $3.1 million. In August 2020, the Company redeemed all of its outstanding 7.75% subordinated notes due 2045 and unamortized debt issuance cost of $3.1 million was written off and included in the consolidated statements of operations as loss on the extinguishment of debt. | ||
[2] | As of December 31, 2020 and 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 $3.9 million, respectively. |
Amounts Recorded for Margin B_2
Amounts Recorded for Margin Borrowing Facilities and Subordinated Notes (Parenthetical) (Detail) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2020 | Apr. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
7.875% Subordinated Notes due 2047 | ||||
Debt Instrument [Line Items] | ||||
Subordinated Notes percentage | 7.875% | 7.875% | ||
Subordinated Notes due date | 2047 | 2047 | 2047 | |
7.75% Subordinated Notes due 2045 | ||||
Debt Instrument [Line Items] | ||||
Subordinated Notes percentage | 7.75% | 7.75% | 7.75% | |
Subordinated Notes due date | 2045 | 2045 | 2045 | 2045 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Lessee Lease Description [Line Item] | ||||
Retained earnings | $ 234,965,000 | $ 270,768,000 | ||
Operating lease, existence of option to terminate [true false] | true | |||
Operating lease, existence of option to extend [true false] | true | |||
Operating lease, existence of option to retract [true false] | true | |||
Rental expense under operating leases, net of sub-lease income | $ 3,500,000 | |||
Rental expense under operating leases, sub-lease income | $ 0 | $ 0 | $ 0 | |
Maximum | ||||
Lessee Lease Description [Line Item] | ||||
Operating lease, remaining lease term | 10 years | |||
Maximum | Cumulative Effect, Period of Adoption Adjustment | ASU 2016-02 | ||||
Lessee Lease Description [Line Item] | ||||
Retained earnings | $ 100,000 | |||
Minimum [Member] | ||||
Lessee Lease Description [Line Item] | ||||
Operating lease, remaining lease term | 3 months |
Components of Lease Expenses (D
Components of Lease Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease expenses | $ 2,952 | $ 3,293 |
Short-term lease expenses | 7 | 7 |
Total lease expenses | $ 2,959 | $ 3,300 |
Schedule of Supplemental Cash F
Schedule of Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of liabilities: | ||
Operating leases | $ 2,012 | $ 2,530 |
Right-of-use assets obtained in exchange for new lease obligations: | ||
Operating leases | $ 772 | $ 13,858 |
Schedule of Supplemental Balanc
Schedule of Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets: | |||
Operating lease assets | $ 21,077 | $ 22,761 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets | |
Liabilities: | |||
Operating lease liabilities | $ 22,950 | $ 23,539 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities | |
Weighted-average remaining lease term | |||
Operating leases | 8 years 9 months 18 days | 10 years 2 months 12 days | |
Weighted-average discount rate | |||
Operating leases | [1] | 2.60% | 2.70% |
[1] | Represents the Company’s incremental borrowing rate |
Future Minimum Lease Payments U
Future Minimum Lease Payments Under Non-cancelable Operating Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 2,883 | |
2022 | 2,756 | |
2023 | 2,790 | |
2024 | 2,816 | |
2025 | 2,871 | |
Thereafter | 11,657 | |
Total future minimum lease payments | 25,773 | |
Less: amount representing interest | 2,823 | |
Present value of minimum lease payments | $ 22,950 | $ 23,539 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | Aug. 27, 2020USD ($)Memberofboardofdirector$ / sharesshares | Dec. 31, 2017$ / shares | Dec. 31, 2020USD ($)Stockholder$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017$ / shares |
Equity [Line Items] | ||||||
Dividend declared, per share | $ / shares | $ 1 | $ 1 | $ 1 | |||
Dividend payable, per share | $ / shares | $ 0.25 | $ 0.25 | $ 0.25 | |||
Distribution paid to preferred shareholders | $ 100,000 | |||||
Accrued dividends | 700,000 | $ 300,000 | ||||
Accrued preferred distributions | $ 0 | |||||
Maximum | ||||||
Equity [Line Items] | ||||||
Accrued preferred distributions | $ 100,000 | |||||
Quarterly Dividend | ||||||
Equity [Line Items] | ||||||
Dividend declared, per share | $ / shares | $ 0.25 | |||||
Annual Dividend | ||||||
Equity [Line Items] | ||||||
Dividend declared, per share | $ / shares | $ 1 | |||||
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 surrendered, repurchased or redeemed | shares | 5,120 | 27,028 | ||||
Voting rights | one | |||||
Number of shareholders | Stockholder | 180 | |||||
Class B Common Shares | ||||||
Equity [Line Items] | ||||||
Shares surrendered, repurchased or redeemed | shares | 0 | 0 | ||||
Voting rights | ten | |||||
Number of shareholders | Stockholder | 4 | |||||
Additional Paid-in Capital | ||||||
Equity [Line Items] | ||||||
Offset treasury shares due to redomestication | $ 4,100,000 | |||||
Treasury Shares | ||||||
Equity [Line Items] | ||||||
Offset treasury shares due to redomestication | $ 4,126,000 | $ 0 | $ 0 | |||
Treasury Shares | Class A Common Shares | ||||||
Equity [Line Items] | ||||||
Stock repurchase program, number of shares purchased | shares | 5,120 | 27,028 | 45,233 | |||
Stock repurchase program, value of shares purchased | $ 153,000 | $ 947,000 | $ 1,813,000 |
Schedule of Dividends & Distrib
Schedule of Dividends & Distributions Declared (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 08, 2020 | Sep. 30, 2020 | Sep. 13, 2020 | Jun. 30, 2020 | Jun. 07, 2020 | Mar. 31, 2020 | Feb. 09, 2020 | Dec. 31, 2019 | Dec. 08, 2019 | Oct. 02, 2019 | Sep. 15, 2019 | Jun. 28, 2019 | Jun. 02, 2019 | Mar. 29, 2019 | Feb. 10, 2019 | Dec. 02, 2018 | Sep. 16, 2018 | Jun. 03, 2018 | Mar. 04, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Dividends Payable [Line Items] | |||||||||||||||||||||||
Approval Date | Dec. 6, 2020 | Sep. 13, 2020 | Jun. 7, 2020 | Feb. 9, 2020 | Dec. 8, 2019 | Sep. 15, 2019 | Jun. 2, 2019 | Feb. 10, 2019 | Dec. 2, 2018 | Sep. 16, 2018 | Jun. 3, 2018 | Mar. 4, 2018 | |||||||||||
Record Date | Dec. 24, 2020 | Sep. 25, 2020 | Jun. 23, 2020 | Mar. 24, 2020 | Dec. 24, 2019 | Sep. 26, 2019 | Jun. 21, 2019 | Mar. 22, 2019 | Dec. 24, 2018 | Sep. 27, 2018 | Jun. 22, 2018 | Mar. 21, 2018 | |||||||||||
Payment Date | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Oct. 2, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 31, 2018 | Oct. 1, 2018 | Jun. 29, 2018 | Mar. 29, 2018 | |||||||||||
Payment of dividends | $ 3,558 | $ 3,552 | $ 3,545 | $ 3,539 | $ 3,532 | $ 3,528 | $ 3,525 | $ 3,521 | $ 3,506 | $ 3,504 | $ 3,502 | $ 3,499 | $ 14,645 | $ 14,374 | $ 14,208 | ||||||||
Unvested Shares, Net of Forfeitures | |||||||||||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||||||||||
Approval Date | Various | Various | Various | ||||||||||||||||||||
Record Date | Various | Various | Various | ||||||||||||||||||||
Payment Date | Various | Various | Various | ||||||||||||||||||||
Payment of dividends | $ 451 | $ 268 | $ 197 |
Information with Respect to Cla
Information with Respect to Class A Common Shares that were Surrendered, Repurchased or Redeemed (Detail) - Class A Common Shares - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | 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 | |
January 1-31, 2020 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1],[2] | 3,124 | |
Average Price Paid Per Share | [1] | $ 29.63 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1] | $ 0 | |
February 1-28, 2020 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [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 | |
August 1-31, 2020 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [2] | 396 | |
Average Price Paid Per Share | [2] | $ 24.95 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [2] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [2] | $ 0 | |
January 1-31, 2019 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1],[2] | 7,945 | |
Average Price Paid Per Share | [1] | $ 36.23 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1] | $ 0 | |
February 1-28, 2019 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Purchased or Redeemed | [1],[2] | 19,083 | |
Average Price Paid Per Share | [1] | $ 34.59 | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | [1] | 0 | |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | [1] | $ 0 | |
[1] | Based on settlement date. | ||
[2] | Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Aug. 27, 2020 | Aug. 31, 2020 | May 31, 2019 | Apr. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2020 | Sep. 04, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
7.75% Subordinated Notes due 2045 | |||||||||
Related Party Transaction [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 | |||||||||
Related Party Transaction [Line Items] | |||||||||
Subordinated Notes percentage | 7.875% | 7.875% | |||||||
Subordinated Notes due date | 2047 | 2047 | 2047 | ||||||
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 interests, non-voting description | While these preferred interests are non-voting, the preferred shareholders are entitled to appoint two additional members to Global Indemnity Group, LLC’s Board of Directors whenever the “Unpaid Targeted Priority Return” with respect to the preferred interests exceed zero immediately following six or more “Distribution Dates”, whether or not such Distribution Dates occur consecutively. | ||||||||
Fox Paine Entities | |||||||||
Related Party Transaction [Line Items] | |||||||||
Company's total voting power | 83.90% | ||||||||
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] | |||||||||
Restated management agreement date | Aug. 28, 2020 | ||||||||
Annual service fee | $ 2,600,000 | ||||||||
Management fees | $ 2,600,000 | $ 2,100,000 | $ 2,100,000 | ||||||
Prepaid management fees | 1,800,000 | $ 1,400,000 | |||||||
Advisory services fees estimated | $ 2,000,000 | 10,000,000 | |||||||
Advisory services fees paid | 10,000,000 | ||||||||
Advisory services fees approved by conflicts committee | $ 10,000,000 | ||||||||
Fox Paine and Company | Co-Obligor Transaction | |||||||||
Related Party Transaction [Line Items] | |||||||||
Advisory services fees estimated | $ 12,500,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2014 |
Commitments and Contingencies [Line Items] | ||||
Commitment to purchase alternative investment | $ 60,000 | $ 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 |
Summary of Award Activity for S
Summary of Award Activity for Stock Options Granted and Weighted Average Exercise Price Per Share (Detail) - $ / shares | Mar. 06, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2014 | ||
Options | |||||||
Options outstanding, beginning balance | 800,000 | 800,000 | 600,000 | ||||
Options issued | 300,000 | 0 | 300,000 | ||||
Options forfeited | (100,000) | 0 | (100,000) | ||||
Options exercised | 0 | [1] | 0 | ||||
Options expired | 0 | 0 | |||||
Options purchased by the Company | 0 | 0 | |||||
Options outstanding, ending balance | 1,000,000 | 800,000 | 800,000 | ||||
Options exercisable at December 31, 2020 | 700,000 | ||||||
Weighted Average Exercise Price Per Share | |||||||
Weighted average exercise price per share, beginning balance | $ 35.06 | $ 35.06 | $ 25.13 | ||||
Options issued | 52.79 | 0 | 50 | ||||
Options forfeited | 38.43 | 0 | 38.43 | ||||
Options exercised | 0 | [1] | 0 | ||||
Options expired | 0 | 0 | |||||
Options purchased by the Company | 0 | 0 | |||||
Weighted average exercise price per share, ending balance | 40.04 | $ 35.06 | $ 35.06 | ||||
Options exercisable at December 31, 2020 | $ 34.58 | ||||||
Time Based Option Award | |||||||
Options | |||||||
Options outstanding, beginning balance | 600,000 | 600,000 | 300,000 | ||||
Options issued | 300,000 | 0 | 300,000 | ||||
Options forfeited | 0 | 0 | |||||
Options exercised | 0 | 0 | |||||
Options expired | 0 | 0 | |||||
Options purchased by the Company | 0 | 0 | |||||
Options outstanding, ending balance | 900,000 | 600,000 | 600,000 | ||||
Options exercisable at December 31, 2020 | 600,000 | ||||||
Weighted Average Exercise Price Per Share | |||||||
Options issued | $ 52.79 | $ 50 | |||||
Performance Based Stock Options | |||||||
Options | |||||||
Options outstanding, beginning balance | 200,000 | 200,000 | 300,000 | [2] | |||
Options issued | 0 | 0 | 300,000 | ||||
Options forfeited | (100,000) | 0 | (100,000) | ||||
Options exercised | 0 | 0 | |||||
Options expired | 0 | 0 | |||||
Options purchased by the Company | 0 | 0 | |||||
Options outstanding, ending balance | 100,000 | 100,000 | 200,000 | 200,000 | |||
Options exercisable at December 31, 2020 | 100,000 | ||||||
[1] | The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. | ||||||
[2] | In 2014, 300,000 performance-based options were granted. On March 6, 2018, the existing vesting provisions of these options were eliminated and replaced with new vesting provisions related to return on equity targets for 2018, 2019, and 2020 (“Bonus Years”). Return on equity targets for the 2018 and 2020 bonus years were not met. As a result, 100,000 performance-based options related to the 2018 bonus year and 100,000 performance-based options related to the 2020 bonus year were forfeited. 100,000 performance-based options remain outstanding. The remaining 100,000 performance-based options, which were related to return on equity targets for the 2019 bonus year, vested on December 31, 2019. These options are subject to remeasurement of 2019 bonus year results after the third full calendar year following the bonus year. |
Summary of Award Activity for_2
Summary of Award Activity for Stock Options Granted and Weighted Average Exercise Price Per Share (Parenthetical) (Detail) - shares | Mar. 06, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2014 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options awarded | 300,000 | 0 | 300,000 | ||||
Stock options forfeited | 100,000 | 0 | 100,000 | ||||
Options outstanding | 1,000,000 | 800,000 | 800,000 | 600,000 | |||
Performance Based Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options awarded | 0 | 0 | 300,000 | ||||
Stock options forfeited | 100,000 | 0 | 100,000 | ||||
Options outstanding | 100,000 | 100,000 | 200,000 | 200,000 | 300,000 | [1] | |
Performance Based Stock Options | 2018 Bonus Year | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options forfeited | 100,000 | ||||||
Performance Based Stock Options | 2019 Bonus Year | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options, vested | 100,000 | ||||||
Performance Based Stock Options | 2020 Bonus Year | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options forfeited | 100,000 | ||||||
[1] | In 2014, 300,000 performance-based options were granted. On March 6, 2018, the existing vesting provisions of these options were eliminated and replaced with new vesting provisions related to return on equity targets for 2018, 2019, and 2020 (“Bonus Years”). Return on equity targets for the 2018 and 2020 bonus years were not met. As a result, 100,000 performance-based options related to the 2018 bonus year and 100,000 performance-based options related to the 2020 bonus year were forfeited. 100,000 performance-based options remain outstanding. The remaining 100,000 performance-based options, which were related to return on equity targets for the 2019 bonus year, vested on December 31, 2019. These options are subject to remeasurement of 2019 bonus year results after the third full calendar year following the bonus year. |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Additional Information (Detail) - USD ($) | Dec. 10, 2020 | Dec. 09, 2020 | Mar. 06, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2020 | Jan. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options awarded | 300,000 | 0 | 300,000 | ||||||||
Average strike price per share | $ 52.79 | $ 0 | $ 50 | ||||||||
Compensation expense, options | $ 1,600,000 | $ 1,100,000 | $ 300,000 | ||||||||
Proceed from exercise of options | $ 0 | $ 0 | $ 0 | ||||||||
Fair value of share | $ 28.59 | $ 28.59 | |||||||||
Weighted average fair value of options granted | $ 1.92 | $ 3.79 | |||||||||
Stock options forfeited | 100,000 | 0 | 100,000 | ||||||||
Subsequent Event | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Compensation expense for stock options to be recognized in next year | $ 1,300,000 | ||||||||||
Key Employees | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options, vested and expected to vest | 27,117 | ||||||||||
Time Based Option Award | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options awarded | 300,000 | 0 | 300,000 | ||||||||
Average strike price per share | $ 52.79 | $ 50 | |||||||||
Stock options forfeited | 0 | 0 | |||||||||
Time Based Option Award | Chief Executive Officer | Share-based Compensation Award, Tranche 3 | Employment Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Average strike price per share | $ 50 | ||||||||||
Number of shares granted | 300,000 | ||||||||||
Time Based Option Award | Chief Executive Officer | Vesting Schedule Two | Employment Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting date | Dec. 31, 2019 | ||||||||||
Stock options, vested and expected to vest | 100,000 | 100,000 | |||||||||
Time Based Option Award | Chief Executive Officer | Vesting Schedule One | Employment Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting date | Dec. 31, 2018 | ||||||||||
Stock options, vested and expected to vest | 100,000 | 100,000 | |||||||||
Time Based Option Award | Chief Executive Officer | Vesting Schedule Three | Employment Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting date | Dec. 31, 2020 | ||||||||||
Stock options, vested and expected to vest | 100,000 | 100,000 | |||||||||
Expiration date | Dec. 31, 2027 | ||||||||||
Restricted Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Compensation expense, restricted stock | $ 3,200,000 | $ 2,800,000 | $ 3,100,000 | ||||||||
Unrecognized compensation expense for non-vested restricted stock | $ 200,000 | $ 200,000 | |||||||||
Weighted average life of non-vested restricted stock | 1 year | ||||||||||
Number of shares granted | 108,521 | 110,599 | 70,424 | 1,629,633 | 1,919,177 | ||||||
Weighted average fair value per share | $ 24.86 | $ 30.93 | $ 38.85 | ||||||||
Shares vested | 128,623 | 150,395 | 166,117 | ||||||||
Restricted Stock | Key Employees | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted | 0 | 43,680 | 38,778 | 1,089,118 | 1,171,576 | ||||||
Weighted average fair value per share | $ 34.23 | $ 40.57 | |||||||||
Shares vested | 9,063 | 11,843 | |||||||||
Stock options, vested and expected to vest | 7,500 | ||||||||||
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% | 16.50% | |||||||||
Vesting date | Jan. 1, 2020 | Jan. 1, 2019 | |||||||||
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% | 16.50% | |||||||||
Vesting date | Jan. 1, 2021 | Jan. 1, 2020 | |||||||||
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% | 17.00% | |||||||||
Vesting date | Jan. 1, 2022 | Jan. 1, 2021 | |||||||||
Restricted Stock | Key Employees | Vesting Schedule Two | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of shares vested on each anniversary of the grant date | 100.00% | 100.00% | |||||||||
Vesting date | Mar. 15, 2022 | Mar. 15, 2021 | |||||||||
Percentage of stock award subject to vesting | 50.00% | 50.00% | |||||||||
Restricted Stock | 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 | 20.00% | ||||||||||
Vesting date | Aug. 26, 2020 | ||||||||||
Restricted Stock | 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 | 20.00% | ||||||||||
Vesting date | Aug. 26, 2021 | ||||||||||
Restricted Stock | 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 | 20.00% | ||||||||||
Vesting date | Aug. 26, 2022 | ||||||||||
Restricted Stock | 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 | 20.00% | ||||||||||
Vesting date | Aug. 26, 2023 | ||||||||||
Restricted Stock | Key Employees | Share-based Compensation Award, Tranche 8 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of shares vested on each anniversary of the grant date | 20.00% | ||||||||||
Vesting date | Aug. 26, 2024 | ||||||||||
Restricted Stock | Non Employee Director | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted | 108,521 | 66,619 | 31,646 | ||||||||
Weighted average fair value per share | $ 24.86 | $ 28.77 | $ 36.74 | ||||||||
Restricted Stock Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Compensation expense, restricted stock | $ 3,200,000 | $ 400,000 | $ 0 | ||||||||
Unrecognized compensation expense for non-vested restricted stock | $ 4,700,000 | $ 4,700,000 | |||||||||
Weighted average life of non-vested restricted stock | 1 year 9 months 18 days | ||||||||||
Number of shares granted | 202,905 | 175,498 | 0 | 0 | 378,403 | ||||||
Weighted average fair value per share | $ 29.02 | $ 30.18 | $ 0 | ||||||||
Shares vested | 41,667 | 0 | 0 | ||||||||
Restricted Stock Units | Key Employees | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted | 161,238 | 175,498 | 0 | 336,736 | |||||||
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] | |||||||||||
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% | ||||||||||
Stock options, vested and expected to vest | 90,906 | 90,906 | |||||||||
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 | 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 | Non Employee Director | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted | 41,667 | ||||||||||
Weighted average fair value per share | $ 24 | ||||||||||
Stock Options | Chief Executive Officer | Chief Executive Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options awarded | 900,000 | ||||||||||
Stock Options | Chief Executive Officer | Share-based Compensation Award, Tranche 2 | Employment Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options awarded | 300,000 | ||||||||||
Stock Options | Chief Executive Officer | Share-based Compensation Award, Tranche 4 | Chief Executive Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options awarded | 300,000 | ||||||||||
Stock Options | Chief Executive Officer | Share-based Payment Arrangement, Tranche 5 | Chief Executive Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted | 300,000 | ||||||||||
Vesting date | Sep. 20, 2021 | ||||||||||
Additional exercise price per share | $ 17.87 | ||||||||||
Stock Options | Chief Executive Officer | Vesting Schedule One | Employment Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting date | Dec. 31, 2018 | ||||||||||
Stock options, vested and expected to vest | 100,000 | ||||||||||
Stock options forfeited | 100,000 | ||||||||||
Stock Options | Chief Executive Officer | Vesting Schedule Two and Three | Employment Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options, vested and expected to vest | 100,000 | ||||||||||
Stock Options | Chief Executive Officer | Vesting Schedule Three | Employment Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting date | Dec. 31, 2019 | ||||||||||
Stock options, vested | 100,000 | ||||||||||
Stock Options | Chief Executive Officer | Share-based Compensation Award, Tranche 4-I | Chief Executive Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options awarded | 100,000 | ||||||||||
Vesting date | Apr. 1, 2022 | ||||||||||
Stock Options | Chief Executive Officer | Share-based Compensation Award, Tranche 4-I | Chief Executive Agreement | Fox Paine and Company | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Ownership percentage | 50.00% | ||||||||||
Stock Options | Chief Executive Officer | Share-based Compensation Award, Tranche 4-II | Chief Executive Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options awarded | 100,000 | ||||||||||
Vesting date | Apr. 1, 2023 | ||||||||||
Additional exercise price of tranche 4-I option, per share | $ 3.09 | ||||||||||
Stock Options | Chief Executive Officer | Share-based Compensation Award, Tranche 4-III | Chief Executive Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options awarded | 100,000 | ||||||||||
Vesting date | Apr. 1, 2024 | ||||||||||
Additional exercise price of tranche 4-I option, per share | $ 3.33 |
Option Intrinsic Values (Detail
Option Intrinsic Values (Detail) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||
Outstanding | 1,000,000 | 800,000 | 800,000 | 600,000 | ||
Exercisable | 700,000 | |||||
Exercised | 0 | [1] | 0 | |||
Outstanding | $ 40.04 | $ 35.06 | $ 35.06 | $ 25.13 | ||
Exercisable | 34.58 | |||||
Exercised | $ 0 | [1] | $ 0 | |||
Outstanding | $ 3,200,000 | |||||
Exercisable | 3,200,000 | |||||
Exercised | [1] | $ 0 | ||||
[1] | The intrinsic value of the exercised options is the difference between the fair market value at time of exercise and the strike price of the option. |
Options Exercisable (Detail)
Options Exercisable (Detail) | Dec. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Price | $ / shares | $ 34.58 | |
Number of options exercisable | shares | 700,000 | |
Exercise Price 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Price | $ / shares | $ 17.87 | |
Number of options exercisable | shares | 300,000 | |
Exercise Price 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Price | $ / shares | $ 38.43 | [1] |
Number of options exercisable | shares | 100,000 | [1] |
Exercise Price 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option Price | $ / shares | $ 50 | |
Number of options exercisable | shares | 300,000 | |
[1] | the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. |
Significant Assumptions Used To
Significant Assumptions Used To Estimate Fair Value of Stock Options Granted Using Black Scholes Option Pricing Model (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Dividend yield | 2.00% | 2.00% |
Expected volatility | 38.32% | 22.47% |
Risk-free interest rate | 0.40% | 2.00% |
Expected option life | 3 years 6 months | 3 years 3 months 18 days |
Summary of Range of Exercise Pr
Summary of Range of Exercise Prices of Options Outstanding (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options outstanding | 1,000,000 | 800,000 | 800,000 | |
Exercise Price Range One | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Ranges of Exercise Prices, minimum | $ 17.87 | $ 17.87 | $ 17.87 | |
Ranges of Exercise Prices, maximum | $ 19.99 | $ 19.99 | $ 19.99 | |
Options outstanding | 300,000 | 300,000 | 300,000 | |
Weighted Average Per Share Exercise Price | $ 17.87 | $ 17.87 | $ 17.87 | |
Weighted Average Remaining Life | 8 months 12 days | 1 year 8 months 12 days | 2 years 8 months 12 days | |
Exercise Price Range Two | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Ranges of Exercise Prices, minimum | $ 30 | $ 30 | $ 30 | |
Ranges of Exercise Prices, maximum | $ 38.43 | $ 38.43 | $ 38.43 | |
Options outstanding | [1] | 100,000 | 200,000 | 200,000 |
Weighted Average Per Share Exercise Price | $ 38.43 | $ 38.43 | $ 38.43 | |
Weighted Average Remaining Life | 4 years | 5 years | 6 years | |
Exercise Price Range Three | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Ranges of Exercise Prices, minimum | $ 49.62 | $ 50 | $ 50 | |
Ranges of Exercise Prices, maximum | $ 59.99 | $ 59.99 | $ 59.99 | |
Options outstanding | 600,000 | 300,000 | 300,000 | |
Weighted Average Per Share Exercise Price | $ 51.40 | $ 50 | $ 50 | |
Weighted Average Remaining Life | 8 years 6 months | 8 years | 9 years | |
[1] | the weighted average per share exercise price on these shares outstanding is variable. See note below under Chief Executive Officer for additional information. |
Summary of Restricted Stock Gra
Summary of Restricted Stock Grants Since Inception (Detail) - Restricted Stock - shares | 12 Months Ended | 180 Months Ended | 216 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Awards | 108,521 | 110,599 | 70,424 | 1,629,633 | 1,919,177 |
Key Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Awards | 0 | 43,680 | 38,778 | 1,089,118 | 1,171,576 |
Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Awards | 108,521 | 66,919 | 31,646 | 540,515 | 747,601 |
Summary of Restricted Stock Uni
Summary of Restricted Stock Unit Grants Since Inception (Detail) - Restricted Stock Units - shares | 12 Months Ended | 192 Months Ended | 216 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Awards | 202,905 | 175,498 | 0 | 0 | 378,403 |
Key Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Awards | 161,238 | 175,498 | 0 | 336,736 | |
Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Awards | 41,667 | 0 | 0 | 41,667 |
Summary of Non-Vested Restricte
Summary of Non-Vested Restricted Shares Activity (Detail) - Restricted Stock - $ / shares | 12 Months Ended | 180 Months Ended | 216 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested restricted shares/units, beginning balance | 62,240 | 113,864 | 212,812 | ||
Shares/Units issued | 108,521 | 110,599 | 70,424 | 1,629,633 | 1,919,177 |
Shares/Units vested | (128,623) | (150,395) | (166,117) | ||
Shares/Units forfeited | (6,735) | (11,828) | (3,255) | ||
Non-vested restricted shares/units, ending balance | 35,403 | 62,240 | 113,864 | 212,812 | 35,403 |
Weighted Average Price Per Share | |||||
Weighted average price per share, beginning balance | $ 37 | $ 33.61 | $ 29.67 | ||
Shares/Units issued | 24.86 | 30.93 | 38.85 | ||
Shares/Units vested | 26.84 | 29.86 | 30.88 | ||
Shares/Units forfeited | 27.74 | 38.42 | 28.91 | ||
Weighted average price per share, ending balance | $ 38.45 | $ 37 | $ 33.61 | $ 29.67 | $ 38.45 |
Summary of Non-Vested Restric_2
Summary of Non-Vested Restricted Units Activity (Detail) - Restricted Stock Units - $ / shares | 12 Months Ended | 192 Months Ended | 216 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested restricted shares/units, beginning balance | 175,498 | 0 | 0 | ||
Shares/Units issued | 202,905 | 175,498 | 0 | 0 | 378,403 |
Shares/Units vested | (41,667) | 0 | 0 | ||
Shares/Units forfeited | (21,710) | 0 | 0 | ||
Non-vested restricted shares/units, ending balance | 315,026 | 175,498 | 0 | 0 | 315,026 |
Weighted Average Price Per Share | |||||
Weighted average price per share, beginning balance | $ 30.18 | $ 0 | $ 0 | ||
Shares/Units issued | 29.02 | 30.18 | 0 | ||
Shares/Units vested | 24 | 0 | 0 | ||
Shares/Units forfeited | 30.06 | 0 | 0 | ||
Weighted average price per share, ending balance | $ 30.26 | $ 30.18 | $ 0 | $ 0 | $ 30.26 |
401(k) Plan - Additional Inform
401(k) Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employer's matching contribution percentage on first 6% contributed by employee to a defined contribution plan | 100.00% | ||
Maximum percentage of employee's earnings that the company may contribute to the defined contribution plan | 6.00% | ||
Defined benefit plan expense | $ 1.9 | $ 1.9 | $ 1.9 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Numerator: | |||||||||||||||
Net income (loss) | $ (21,006) | $ 70,015 | $ (56,696) | ||||||||||||
Less: preferred stock distributions | 152 | 0 | 0 | ||||||||||||
Net income (loss) available to common shareholders | $ 1,081 | $ (15,212) | $ 37,551 | $ (44,578) | $ 29,031 | $ 6,721 | $ 14,663 | $ 19,600 | $ (21,158) | $ 70,015 | $ (56,696) | ||||
Denominator: | |||||||||||||||
Basic | 14,291,265 | 14,191,756 | 14,088,883 | ||||||||||||
Weighted average shares for diluted earnings per share | [1] | 14,291,265 | 14,334,706 | 14,088,883 | |||||||||||
Basic | [2] | $ (1.48) | $ 4.93 | $ (4.02) | |||||||||||
Diluted | $ 0.07 | $ (1.06) | $ 2.61 | $ (3.13) | $ 2.02 | $ 0.47 | $ 1.02 | $ 1.37 | $ (1.48) | [2] | $ 4.88 | [2] | $ (4.02) | [2] | |
Restricted Stock | |||||||||||||||
Denominator: | |||||||||||||||
Non-vested restricted stock, units and options | 0 | 20,492 | 0 | ||||||||||||
Restricted Stock Units | |||||||||||||||
Denominator: | |||||||||||||||
Non-vested restricted stock, units and options | 0 | 3,392 | 0 | ||||||||||||
Stock Options | |||||||||||||||
Denominator: | |||||||||||||||
Non-vested restricted stock, units and options | 0 | 119,066 | 0 | ||||||||||||
[1] | For the years ended December 31, 2020 and 2018, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss for these periods. | ||||||||||||||
[2] | For the years ended December 31, 2020 and 2018, “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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Incremental shares included in calculation of diluted EPS | 14,458,008 | 14,325,276 | |
Stock Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares excluded from calculation of diluted earnings per share | 700,000 | 500,000 | 500,000 |
Restricted Stock Units | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares excluded from calculation of diluted earnings per share | 66,957 | ||
Restricted Stock Diluted | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Non-vested restricted stock and options | 17,470 | 76,568 | |
Restricted Stock Units | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Non-vested restricted stock and options | 57,456 | 0 | |
Stock Options Diluted | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Non-vested restricted stock and options | 91,816 | 159,825 |
Statutory Financial Informati_3
Statutory Financial Information - Additional Information (Detail) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Oct. 02, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 02, 2018 | Sep. 16, 2018 | Jun. 03, 2018 | Mar. 04, 2018 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Statutory Accounting Practices [Line Items] | ||||||||||||||||
Dividends | $ 3,558,000 | $ 3,552,000 | $ 3,545,000 | $ 3,539,000 | $ 3,532,000 | $ 3,528,000 | $ 3,525,000 | $ 3,521,000 | $ 3,506,000 | $ 3,504,000 | $ 3,502,000 | $ 3,499,000 | $ 14,645,000 | $ 14,374,000 | $ 14,208,000 | |
Merger date | Aug. 28, 2020 | |||||||||||||||
Penn Patriot Insurance Company | ||||||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||||||
Maximum amount of dividends that could be paid in 2020 under applicable laws and regulations without regulatory approval | 34,300,000 | $ 34,300,000 | ||||||||||||||
Dividends | 0 | |||||||||||||||
United National Insurance Companies | ||||||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||||||
Maximum amount of dividends that could be paid in 2020 under applicable laws and regulations without regulatory approval | 17,400,000 | 17,400,000 | ||||||||||||||
Dividends | 0 | |||||||||||||||
American Reliable Insurance Company | ||||||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||||||
Maximum amount of dividends that could be paid in 2020 under applicable laws and regulations without regulatory approval | 10,000,000 | 10,000,000 | ||||||||||||||
Dividends | 0 | |||||||||||||||
Penn- America Insurance Companies | ||||||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||||||
Maximum amount of dividends that could be paid in 2020 under applicable laws and regulations without regulatory approval | $ 8,100,000 | 8,100,000 | ||||||||||||||
Maximum amount of dividends payable under applicable laws and regulations without regulatory approval which would be distributed to wholly owned parent company | 2,700,000 | |||||||||||||||
Dividends | $ 0 | |||||||||||||||
Global Indemnity Reinsurance | ||||||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||||||
Dividends | $ 226,000,000 | |||||||||||||||
Maximum reduction in statutory capital allowed without regulatory approval | 15.00% | |||||||||||||||
Maximum reduction in statutory capital and surplus allowed without regulatory approval | 25.00% |
Information for Company's Unite
Information for Company's United States Insurance Companies, Net of Intercompany Eliminations as Determined in Accordance With Sap (Detail) - U.S. Insurance Companies - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus, as of end of period | $ 342,987 | $ 263,793 | $ 225,645 |
Statutory net income (loss) | $ 73,655 | $ 39,971 | $ (52,036) |
Information for United States I
Information for United States Insurance Companies & Global Indemnity Reinsurance, Net of Intercompany Eliminations, as Determined in Accordance With SAP and Bermuda (Detail) - Global Indemnity Reinsurance - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus, as of end of period | $ 885,763 | $ 835,620 |
Statutory net income (loss) | $ 34,086 | $ (3,972) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable business segments managed | 4 |
Personal Lines | |
Segment Reporting Information [Line Items] | |
Number of reportable business segments managed | 2 |
Summary of Business Segment Inf
Summary of Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||
Revenues: | |||||||||||||||||
Gross written premiums | $ 606,603 | $ 636,861 | $ 547,897 | ||||||||||||||
Net written premiums | 548,167 | 562,089 | 472,547 | ||||||||||||||
Net earned premiums | $ 141,082 | $ 140,302 | $ 141,847 | $ 144,468 | $ 141,660 | $ 133,312 | $ 128,201 | $ 122,089 | 567,699 | 525,262 | 467,775 | ||||||
Other income (loss) | 2,038 | ||||||||||||||||
Other income (loss) | 2,118 | 1,816 | 1,728 | ||||||||||||||
Total revenues | 569,737 | 527,078 | 469,503 | ||||||||||||||
Losses and Expenses: | |||||||||||||||||
Net losses and loss adjustment expenses | 94,109 | 97,148 | 67,297 | 77,647 | 73,423 | 73,583 | 70,075 | 58,321 | 336,201 | 275,402 | 334,625 | ||||||
Acquisition costs and other underwriting expenses | 52,349 | 53,268 | 53,578 | 56,412 | 54,760 | 53,366 | 50,534 | 49,743 | 215,607 | 208,403 | 190,778 | ||||||
Income (loss) from segments | 17,929 | 43,273 | (55,900) | ||||||||||||||
Unallocated Items: | |||||||||||||||||
Net investment income | 8,876 | 11,746 | (2,359) | 10,129 | 9,659 | 11,348 | 13,826 | 7,219 | 28,392 | 42,052 | 46,342 | ||||||
Net realized investment gains (losses) | 7,670 | 7,323 | 38,507 | (68,162) | 24,052 | (2,690) | 3,590 | 10,390 | (14,662) | 35,342 | (16,907) | ||||||
Other income | 80 | ||||||||||||||||
Corporate and other operating expenses | (41,998) | (18,888) | (29,766) | ||||||||||||||
Interest expense | (15,792) | (20,022) | (19,694) | ||||||||||||||
Loss on extinguishment of debt | (3,060) | 0 | 0 | ||||||||||||||
Income (loss) before income taxes | 1,259 | $ (18,379) | $ 44,556 | $ (56,547) | 35,610 | $ 6,404 | $ 15,849 | $ 23,894 | (29,111) | 81,757 | (75,925) | ||||||
Income tax (expense) benefit | 8,105 | (11,742) | 19,229 | ||||||||||||||
Net income (loss) | (21,006) | 70,015 | (56,696) | ||||||||||||||
Total assets | 1,904,908 | 2,075,885 | 1,904,908 | 2,075,885 | 1,960,266 | ||||||||||||
Segment Assets | |||||||||||||||||
Unallocated Items: | |||||||||||||||||
Total assets | 1,518,859 | 1,401,740 | 1,518,859 | 1,401,740 | 1,433,693 | ||||||||||||
Corporate Assets | |||||||||||||||||
Unallocated Items: | |||||||||||||||||
Total assets | 386,049 | 674,145 | 386,049 | 674,145 | 526,573 | ||||||||||||
Commercial Specialty | |||||||||||||||||
Revenues: | |||||||||||||||||
Gross written premiums | 321,879 | 297,332 | [1] | 249,948 | [1] | ||||||||||||
Net written premiums | 292,216 | 258,719 | [1] | 226,827 | [1] | ||||||||||||
Net earned premiums | 285,694 | 237,758 | [1] | 218,357 | [1] | ||||||||||||
Other income (loss) | 0 | ||||||||||||||||
Total revenues | 285,694 | 237,758 | [1] | 218,357 | [1] | ||||||||||||
Losses and Expenses: | |||||||||||||||||
Net losses and loss adjustment expenses | 155,271 | 108,911 | [1] | 114,476 | [1] | ||||||||||||
Acquisition costs and other underwriting expenses | 104,659 | 96,475 | [1] | 87,371 | [1],[2] | ||||||||||||
Income (loss) from segments | 25,764 | 32,372 | [1] | 16,510 | [1] | ||||||||||||
Unallocated Items: | |||||||||||||||||
Net realized investment gains (losses) | 0 | ||||||||||||||||
Other income | 0 | ||||||||||||||||
Commercial Specialty | Segment Assets | |||||||||||||||||
Unallocated Items: | |||||||||||||||||
Total assets | 850,813 | 713,010 | [1] | 850,813 | 713,010 | [1] | 712,632 | [1] | |||||||||
Specialty Property | |||||||||||||||||
Revenues: | |||||||||||||||||
Gross written premiums | 138,401 | [3] | 163,503 | [1],[4] | 170,168 | [1],[5] | |||||||||||
Net written premiums | 121,111 | 140,670 | [1] | 127,470 | [1] | ||||||||||||
Net earned premiums | 131,474 | 140,232 | [1] | 128,768 | [1] | ||||||||||||
Other income (loss) | 1,705 | ||||||||||||||||
Other income (loss) | [1] | 1,820 | 1,782 | ||||||||||||||
Total revenues | 133,179 | 142,052 | [1] | 130,550 | [1] | ||||||||||||
Losses and Expenses: | |||||||||||||||||
Net losses and loss adjustment expenses | 94,540 | 75,426 | [1] | 122,709 | [1] | ||||||||||||
Acquisition costs and other underwriting expenses | 55,547 | 58,768 | [1] | 55,760 | [1],[6] | ||||||||||||
Income (loss) from segments | (16,908) | 7,858 | [1] | (47,919) | [1] | ||||||||||||
Unallocated Items: | |||||||||||||||||
Net realized investment gains (losses) | 0 | ||||||||||||||||
Other income | 0 | ||||||||||||||||
Specialty Property | Segment Assets | |||||||||||||||||
Unallocated Items: | |||||||||||||||||
Total assets | 237,835 | 226,388 | [1] | 237,835 | 226,388 | [1] | 270,083 | [1] | |||||||||
Farm, Ranch & Stable | |||||||||||||||||
Revenues: | |||||||||||||||||
Gross written premiums | 85,646 | 87,745 | [1] | 79,738 | [1] | ||||||||||||
Net written premiums | 74,163 | 74,416 | [1] | 70,217 | [1] | ||||||||||||
Net earned premiums | 76,166 | 71,312 | [1] | 69,248 | [1] | ||||||||||||
Other income (loss) | 142 | ||||||||||||||||
Other income (loss) | [1] | 132 | 156 | ||||||||||||||
Total revenues | 76,308 | 71,444 | [1] | 69,404 | [1] | ||||||||||||
Losses and Expenses: | |||||||||||||||||
Net losses and loss adjustment expenses | 47,151 | 42,700 | [1] | 41,180 | [1] | ||||||||||||
Acquisition costs and other underwriting expenses | 29,761 | 29,551 | [1] | 29,801 | [1],[7] | ||||||||||||
Income (loss) from segments | (604) | (807) | [1] | (1,577) | [1] | ||||||||||||
Unallocated Items: | |||||||||||||||||
Net realized investment gains (losses) | 0 | ||||||||||||||||
Other income | 0 | ||||||||||||||||
Farm, Ranch & Stable | Segment Assets | |||||||||||||||||
Unallocated Items: | |||||||||||||||||
Total assets | 152,037 | 136,891 | [1] | 152,037 | 136,891 | [1] | 134,056 | [1] | |||||||||
Reinsurance Operations | |||||||||||||||||
Revenues: | |||||||||||||||||
Gross written premiums | 60,677 | [1] | 88,281 | [3] | 48,043 | [3] | |||||||||||
Net written premiums | 60,677 | [1] | 88,284 | [3] | 48,033 | [3] | |||||||||||
Net earned premiums | 74,365 | [1] | 75,960 | [3] | 51,402 | [3] | |||||||||||
Other income (loss) | [1] | 191 | |||||||||||||||
Other income (loss) | [3] | (136) | (210) | ||||||||||||||
Total revenues | 74,556 | [1] | 75,824 | [3] | 51,192 | [3] | |||||||||||
Losses and Expenses: | |||||||||||||||||
Net losses and loss adjustment expenses | 39,239 | [1] | 48,365 | [3] | 56,260 | [3] | |||||||||||
Acquisition costs and other underwriting expenses | 25,640 | [1] | 23,609 | [3] | 17,846 | [3] | |||||||||||
Income (loss) from segments | 9,677 | [1] | 3,850 | [3] | (22,914) | [3] | |||||||||||
Unallocated Items: | |||||||||||||||||
Net realized investment gains (losses) | [1] | 0 | |||||||||||||||
Other income | [1] | 0 | |||||||||||||||
Reinsurance Operations | Segment Assets | |||||||||||||||||
Unallocated Items: | |||||||||||||||||
Total assets | $ 278,174 | [1] | $ 325,451 | [3] | $ 278,174 | [1] | $ 325,451 | [3] | $ 316,922 | [3] | |||||||
[1] | External business only, excluding business assumed from affiliates. | ||||||||||||||||
[2] | Includes federal excise tax of $386 relating to cessions from Commercial Specialty to Reinsurance Operations. | ||||||||||||||||
[3] | Includes less than $0.1 million of business written by American Reliable that was ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. | ||||||||||||||||
[4] | Includes ($273) of business written by American Reliable that was ceded to insurance companies | ||||||||||||||||
[5] | Includes ($2,062) of business written by American Reliable that was ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement. | ||||||||||||||||
[6] | Includes federal excise tax of $313 relating to cessions from Specialty Property to Reinsurance Operations. | ||||||||||||||||
[7] | Includes federal excise tax of $145 relating to cessions from Farm, Ranch & Stable to Reinsurance Operations. |
Summary of Business Segment I_2
Summary of Business Segment Information (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Specialty Property | |||
Segment Reporting Information [Line Items] | |||
Federal excise tax relating to cessions from Insurance Operations to Reinsurance Operations | $ 313 | ||
Commercial Specialty | |||
Segment Reporting Information [Line Items] | |||
Federal excise tax relating to cessions from Insurance Operations to Reinsurance Operations | 386 | ||
Farm, Ranch & Stable | |||
Segment Reporting Information [Line Items] | |||
Federal excise tax relating to cessions from Insurance Operations to Reinsurance Operations | 145 | ||
American Reliable Insurance Company | Specialty Property | |||
Segment Reporting Information [Line Items] | |||
Ceded premiums written | $ (273) | $ (2,062) | |
Quota share agreement percentage | 100.00% | 100.00% | 100.00% |
American Reliable Insurance Company | Specialty Property | Maximum | |||
Segment Reporting Information [Line Items] | |||
Ceded premiums written | $ 100 |
Net Federal Income Taxes and Ca
Net Federal Income Taxes and Cash Interest Paid (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |||
Federal income taxes paid | $ 162 | $ 251 | $ 859 |
Federal income taxes recovered | 10,987 | 170 | 0 |
Interest paid | $ 16,602 | $ 19,711 | $ 19,387 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - Topic 820 | Dec. 31, 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 |
Summary of Quarterly Performanc
Summary of Quarterly Performance (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Net earned premiums | $ 141,082 | $ 140,302 | $ 141,847 | $ 144,468 | $ 141,660 | $ 133,312 | $ 128,201 | $ 122,089 | $ 567,699 | $ 525,262 | $ 467,775 | |||
Net investment income | 8,876 | 11,746 | (2,359) | 10,129 | 9,659 | 11,348 | 13,826 | 7,219 | 28,392 | 42,052 | 46,342 | |||
Net realized investment gains (losses) | 7,670 | 7,323 | 38,507 | (68,162) | 24,052 | (2,690) | 3,590 | 10,390 | (14,662) | 35,342 | (16,907) | |||
Net losses and loss adjustment expenses | 94,109 | 97,148 | 67,297 | 77,647 | 73,423 | 73,583 | 70,075 | 58,321 | 336,201 | 275,402 | 334,625 | |||
Acquisition costs and other underwriting expenses | 52,349 | 53,268 | 53,578 | 56,412 | 54,760 | 53,366 | 50,534 | 49,743 | 215,607 | 208,403 | 190,778 | |||
Income (loss) before income taxes | 1,259 | (18,379) | 44,556 | (56,547) | 35,610 | 6,404 | 15,849 | 23,894 | (29,111) | 81,757 | (75,925) | |||
Net income (loss) available to common shareholders | $ 1,081 | $ (15,212) | $ 37,551 | $ (44,578) | $ 29,031 | $ 6,721 | $ 14,663 | $ 19,600 | $ (21,158) | $ 70,015 | $ (56,696) | |||
Per share data - Diluted: | ||||||||||||||
Net income (loss) available to common shareholders | $ 0.07 | $ (1.06) | $ 2.61 | $ (3.13) | $ 2.02 | $ 0.47 | $ 1.02 | $ 1.37 | $ (1.48) | [1] | $ 4.88 | [1] | $ (4.02) | [1] |
[1] | For the years ended December 31, 2020 and 2018, “weighted average shares outstanding - basic” was used to calculate “diluted earnings per share” due to a net loss for the period. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Feb. 14, 2021$ / shares | Jan. 31, 2021USD ($)Directorshares | Jan. 19, 2021USD ($)shares | Dec. 08, 2020 | Sep. 13, 2020 | Jun. 07, 2020 | Feb. 09, 2020 | Dec. 08, 2019 | Sep. 15, 2019 | Jun. 02, 2019 | Feb. 10, 2019 | Dec. 02, 2018 | Sep. 16, 2018 | Jun. 03, 2018 | Mar. 04, 2018 | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018$ / sharesshares | Jan. 30, 2021Director | Dec. 31, 2017USD ($) | Dec. 31, 2014USD ($) |
Subsequent Event [Line Items] | |||||||||||||||||||||
Options issued | shares | 300,000 | 0 | 300,000 | ||||||||||||||||||
Commitment to purchase alternative investment | $ 60,000,000 | $ 10,000,000 | $ 50,000,000 | $ 50,000,000 | |||||||||||||||||
Dividend payable, per share | $ / shares | $ 0.25 | $ 0.25 | $ 0.25 | ||||||||||||||||||
Approval Date | Dec. 6, 2020 | Sep. 13, 2020 | Jun. 7, 2020 | Feb. 9, 2020 | Dec. 8, 2019 | Sep. 15, 2019 | Jun. 2, 2019 | Feb. 10, 2019 | Dec. 2, 2018 | Sep. 16, 2018 | Jun. 3, 2018 | Mar. 4, 2018 | |||||||||
Payment Date | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Oct. 2, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 31, 2018 | Oct. 1, 2018 | Jun. 29, 2018 | Mar. 29, 2018 | |||||||||
Record Date | Dec. 24, 2020 | Sep. 25, 2020 | Jun. 23, 2020 | Mar. 24, 2020 | Dec. 24, 2019 | Sep. 26, 2019 | Jun. 21, 2019 | Mar. 22, 2019 | Dec. 24, 2018 | Sep. 27, 2018 | Jun. 22, 2018 | Mar. 21, 2018 | |||||||||
Subsequent Event | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Commitment to purchase alternative investment | $ 25,000,000 | ||||||||||||||||||||
Dividend payable, per share | $ / shares | $ 0.25 | ||||||||||||||||||||
Approval Date | Feb. 14, 2021 | ||||||||||||||||||||
Payment Date | Mar. 31, 2021 | ||||||||||||||||||||
Record Date | Mar. 22, 2021 | ||||||||||||||||||||
Chief Executive Officer | Subsequent Event | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Number of board of directors | Director | 6 | 7 | |||||||||||||||||||
Separation agreement end date | Jan. 31, 2023 | ||||||||||||||||||||
Chief Executive Officer | Subsequent Event | Separation Agreement | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Severance payment to be paid | $ 675,000 | ||||||||||||||||||||
Shares vested | shares | 300,000 | ||||||||||||||||||||
Severance payment to be paid year and month | 2021-12 | ||||||||||||||||||||
Chief Executive Officer | Subsequent Event | Separation Agreement | Minimum [Member] | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Options vested, remaining exercisable period | 24 months | ||||||||||||||||||||
Chief Executive Officer | Subsequent Event | Separation Agreement | Maximum | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Options vested, remaining exercisable period | 38 months | ||||||||||||||||||||
Mr. Oltman | Subsequent Event | Tranche 1 | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Vesting date | Apr. 1, 2022 | ||||||||||||||||||||
Mr. Oltman | Subsequent Event | Tranche 2 | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Vesting date | Apr. 1, 2023 | ||||||||||||||||||||
Mr. Oltman | Subsequent Event | Tranche 3 | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Vesting date | Apr. 1, 2024 | ||||||||||||||||||||
Mr. Oltman | Subsequent Event | Terms Of Employment | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Employment period end date | Dec. 31, 2023 | ||||||||||||||||||||
Annual base salary | $ 650,000 | ||||||||||||||||||||
Percentage of bonus opportunity payable in cash | 50.00% | ||||||||||||||||||||
Percentage of bonus opportunity payable in company stock | 50.00% | ||||||||||||||||||||
Description of terms of share vested | One-third of the options will vest on April 1 of each of 2022, 2023 and 2024, subject to the achievement of certain underwriting results for the applicable year as determined by the Board and Mr. Oltman being a Company employee in good standing as of the applicable vesting date. | ||||||||||||||||||||
Options issued | shares | 140,000 | ||||||||||||||||||||
Percentage of shares vested on each anniversary of the grant date | 33.33% | ||||||||||||||||||||
Post-termination non-competition term | 2 years | ||||||||||||||||||||
Mr. Oltman | Subsequent Event | Terms Of Employment | Minimum [Member] | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Officers annual bonus opportunity | $ 487,500 | ||||||||||||||||||||
Mr. Oltman | Subsequent Event | Terms Of Employment | Maximum | |||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||
Officers annual bonus opportunity | $ 812,500 |
Summary Of Investments Other Th
Summary Of Investments Other Than Investments In Related Parties (Detail) $ in Thousands | Dec. 31, 2020USD ($) | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | $ 1,345,017 | [1] |
Value | 1,387,194 | |
Amount Included in the Balance Sheet | 1,387,194 | |
Fixed Maturities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 1,149,009 | [1] |
Value | 1,191,186 | |
Amount Included in the Balance Sheet | 1,191,186 | |
Fixed Maturities | United States Government and Government Agencies and Authorities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 195,444 | [1] |
Value | 197,480 | |
Amount Included in the Balance Sheet | 197,480 | |
Fixed Maturities | States, Municipalities, and Political Subdivisions | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 58,140 | [1] |
Value | 61,243 | |
Amount Included in the Balance Sheet | 61,243 | |
Fixed Maturities | Mortgage Backed And Asset Backed Securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 573,311 | [1] |
Value | 587,330 | |
Amount Included in the Balance Sheet | 587,330 | |
Fixed Maturities | Public Utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 23,638 | [1] |
Value | 25,250 | |
Amount Included in the Balance Sheet | 25,250 | |
Fixed Maturities | All Other Corporate Bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 298,476 | [1] |
Value | 319,883 | |
Amount Included in the Balance Sheet | 319,883 | |
Equity securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 98,990 | [1] |
Value | 98,990 | |
Amount Included in the Balance Sheet | 98,990 | |
Equity securities | Public Utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 0 | [1] |
Value | 0 | |
Amount Included in the Balance Sheet | 0 | |
Equity securities | Industrial and Miscellaneous | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 98,990 | [1] |
Value | 98,990 | |
Amount Included in the Balance Sheet | 98,990 | |
Other long-term investments | Other Invested Assets | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 97,018 | [1] |
Value | 97,018 | |
Amount Included in the Balance Sheet | $ 97,018 | |
[1] | Original cost of fixed maturities adjusted for amortization of premiums and accretion of discounts; original cost of equity securities and other long-term investments adjusted for income or loss earned on investments in accordance with equity method of accounting. All amounts are shown net of impairment losses. |
Condensed Financial Informati_2
Condensed Financial Information of Registrant (Parent Only) Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ASSETS | |||||
Fixed maturities | $ 1,191,186 | $ 1,253,159 | |||
Equity securities, at fair value | 98,990 | 263,104 | |||
Other invested assets | 97,018 | 47,279 | |||
Total investments | 1,387,194 | 1,563,542 | |||
Cash and cash equivalents | 67,359 | 44,271 | |||
Other assets | 66,912 | 60,048 | |||
Total assets | 1,904,908 | 2,075,885 | $ 1,960,266 | ||
Liabilities: | |||||
Other liabilities | 81,548 | 74,212 | |||
Total liabilities | 1,186,584 | 1,349,076 | |||
Commitments and contingencies | |||||
Shareholders’ equity: | |||||
Common shares, par value: no par at December 31, 2020 and $0.0001 at December 31, 2019, 900,000,000 common shares authorized; class A common shares issued: 10,263,722 and 10,282,277 respectively; class A common shares outstanding: 10,263,722 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 | 445,051 | 442,403 | |||
Accumulated other comprehensive income, net of tax | 34,308 | 17,609 | (21,231) | ||
Retained earnings | 234,965 | 270,768 | |||
Total shareholders’ equity | 718,324 | 726,809 | 629,059 | ||
Total liabilities and shareholders’ equity | 1,904,908 | 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 | 0 | |||
Total shareholders’ equity | 4,000 | 0 | 0 | ||
Class A Common Shares | |||||
Shareholders’ equity: | |||||
Total shareholders’ equity | 0 | 1 | $ 1 | $ 1 | |
Class A common shares in treasury, at cost: 115,221 shares | 0 | 3,973 | |||
Parent Company | Global Indemnity Group LLC | |||||
ASSETS | |||||
Fixed maturities | 86,434 | ||||
Equity securities, at fair value | 60,379 | ||||
Other invested assets | 60,000 | ||||
Total investments | 206,813 | ||||
Cash and cash equivalents | 1,402 | ||||
Intercompany note receivable | [1] | 11,283 | |||
Interest receivable – affiliate | 57 | ||||
Equity in unconsolidated subsidiaries | [1] | 495,138 | |||
Receivable for securities | 2 | ||||
Other assets | 6,569 | ||||
Total assets | 721,264 | ||||
Liabilities: | |||||
Due to affiliates | [1] | 1,440 | |||
Other liabilities | 1,500 | ||||
Total liabilities | 2,940 | ||||
Commitments and contingencies | 0 | ||||
Shareholders’ equity: | |||||
Common shares, par value: no par at December 31, 2020 and $0.0001 at December 31, 2019, 900,000,000 common shares authorized; class A common shares issued: 10,263,722 and 10,282,277 respectively; class A common shares outstanding: 10,263,722 and 10,167,056, respectively; class B common shares issued and outstanding: 4,133,366 and 4,133,366, respectively | 0 | ||||
Additional paid-in capital | 445,051 | ||||
Accumulated other comprehensive income, net of tax | 34,308 | ||||
Retained earnings | 234,965 | ||||
Total shareholders’ equity | 718,324 | ||||
Total liabilities and shareholders’ equity | 721,264 | ||||
Parent Company | Global Indemnity Group LLC | 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 | ||||
Parent Company | Global Indemnity Limited | |||||
ASSETS | |||||
Fixed maturities | 30,938 | ||||
Other invested assets | 13,530 | ||||
Total investments | 44,468 | ||||
Cash and cash equivalents | 977 | ||||
Equity in unconsolidated subsidiaries | [1] | 1,218,491 | |||
Other assets | 9,394 | ||||
Total assets | 1,273,330 | ||||
Liabilities: | |||||
Due to affiliates | [1] | 3,612 | |||
Intercompany notes payable | [1] | 520,498 | |||
Interest payable - affiliates | [1] | 20,343 | |||
Other liabilities | 2,068 | ||||
Total liabilities | 546,521 | ||||
Commitments and contingencies | 0 | ||||
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 | 0 | ||||
Common shares, par value: no par at December 31, 2020 and $0.0001 at December 31, 2019, 900,000,000 common shares authorized; class A common shares issued: 10,263,722 and 10,282,277 respectively; class A common shares outstanding: 10,263,722 and 10,167,056, respectively; class B common shares issued and outstanding: 4,133,366 and 4,133,366, respectively | 2 | ||||
Additional paid-in capital | 442,403 | ||||
Accumulated other comprehensive income, net of tax | 17,609 | ||||
Retained earnings | 270,768 | ||||
Total shareholders’ equity | 726,809 | ||||
Total liabilities and shareholders’ equity | 1,273,330 | ||||
Parent Company | Global Indemnity Limited | Class A Common Shares | |||||
Shareholders’ equity: | |||||
Class A common shares in treasury, at cost: 115,221 shares | $ (3,973) | ||||
[1] | This item has been eliminated in the Company’s Consolidated Financial Statements. |
Condensed Financial Informati_3
Condensed Financial Information of Registrant (Parent Only) Balance Sheets (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2020 | Aug. 27, 2020 | Dec. 31, 2019 |
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0 | $ 0.0001 | |
Ordinary shares, shares authorized | 900,000,000 | 900,000,000 | |
Global Indemnity Group LLC | Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0 | ||
Ordinary shares, shares authorized | 900,000,000 | ||
Global Indemnity Limited | Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0.0001 | ||
Ordinary shares, shares authorized | 900,000,000 | ||
Preferred shares, par value | $ 0.0001 | ||
Preferred shares, shares authorized | 100,000,000 | ||
Preferred shares, shares issued | 0 | ||
Preferred shares, shares outstanding | 0 | ||
Class A Common Shares | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, shares issued | 10,263,722 | 10,282,277 | |
Ordinary shares, shares outstanding | 10,263,722 | 10,167,056 | |
Class A Common Shares | Global Indemnity Group LLC | Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, shares issued | 10,263,722 | ||
Ordinary shares, shares outstanding | 10,263,722 | ||
Class A Common Shares | Global Indemnity Limited | Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, shares issued | 10,282,277 | ||
Ordinary shares, shares outstanding | 10,167,056 | ||
Treasury shares, shares | 115,221 | ||
Class B Common Shares | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, shares issued | 4,133,366 | 4,133,366 | |
Ordinary shares, shares outstanding | 4,133,366 | 4,133,366 | |
Class B Common Shares | Global Indemnity Group LLC | Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, shares issued | 4,133,366 | ||
Ordinary shares, shares outstanding | 4,133,366 | ||
Class B Common Shares | Global Indemnity Limited | Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, shares issued | 4,133,366 | ||
Ordinary shares, shares outstanding | 4,133,366 | ||
Series A Cumulative Fixed Rate Preferred Shares | |||
Condensed Financial Statements, Captions [Line Items] | |||
Preferred shares, par value | $ 1,000 | $ 1,000 | |
Preferred shares, shares authorized | 100,000,000 | 100,000,000 | |
Preferred shares, shares issued | 4,000 | 4,000 | 0 |
Preferred shares, shares outstanding | 4,000 | 0 | |
Preferred shares, liquidation preference | $ 1,000 | $ 0 | |
Series A Cumulative Fixed Rate Preferred Shares | Global Indemnity Group LLC | Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Preferred shares, par value | $ 1,000 | ||
Preferred shares, shares authorized | 100,000,000 | ||
Preferred shares, shares issued | 4,000 | ||
Preferred shares, shares outstanding | 4,000 | ||
Preferred shares, liquidation preference | $ 1,000 |
Condensed Financial Informati_4
Condensed Financial Information of Registrant (Parent Only) Statement of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenues: | ||||||||||||
Net investment income | $ 8,876 | $ 11,746 | $ (2,359) | $ 10,129 | $ 9,659 | $ 11,348 | $ 13,826 | $ 7,219 | $ 28,392 | $ 42,052 | $ 46,342 | |
Net realized investment gains (losses) | 7,670 | 7,323 | 38,507 | (68,162) | 24,052 | (2,690) | 3,590 | 10,390 | (14,662) | 35,342 | (16,907) | |
Other income | 2,118 | 1,816 | 1,728 | |||||||||
Total revenues | 583,547 | 604,472 | 498,938 | |||||||||
Expenses: | ||||||||||||
Interest expense | 15,792 | 20,022 | 19,694 | |||||||||
Corporate and other operating expenses | 41,998 | 18,888 | 29,766 | |||||||||
Loss on extinguishment of debt | (3,060) | 0 | 0 | |||||||||
Income (loss) before income taxes | $ 1,259 | $ (18,379) | $ 44,556 | $ (56,547) | $ 35,610 | $ 6,404 | $ 15,849 | $ 23,894 | (29,111) | 81,757 | (75,925) | |
Net income (loss) | (21,006) | 70,015 | (56,696) | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized holding gains (losses) | 33,334 | 43,980 | (20,748) | |||||||||
Reclassification adjustment for gains included in net income (loss) | (17,794) | (5,437) | 2,450 | |||||||||
Other comprehensive income (loss), net of tax | 16,699 | 38,840 | (20,186) | |||||||||
Comprehensive income (loss), net of tax | (4,307) | 108,855 | (76,882) | |||||||||
Global Indemnity Group LLC | Parent Company | ||||||||||||
Revenues: | ||||||||||||
Net investment income | [1] | 2,876 | ||||||||||
Intercompany interest income | [1],[2] | 57 | ||||||||||
Net realized investment gains (losses) | [1] | (1,444) | ||||||||||
Other income | [1] | 1 | ||||||||||
Total revenues | [1] | 1,490 | ||||||||||
Expenses: | ||||||||||||
Intercompany interest expense | [1],[2] | 550 | ||||||||||
Interest expense | [1] | 218 | ||||||||||
Corporate and other operating expenses | [1] | 23,641 | ||||||||||
Loss on extinguishment of debt | [1] | 3,060 | ||||||||||
Income (loss) before income taxes | [1] | (25,979) | ||||||||||
Equity in the earnings of liability companies or partnerships | [1],[2] | 4,973 | ||||||||||
Net income (loss) | [1] | (21,006) | ||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized holding gains (losses) | [1] | (4,581) | ||||||||||
Equity in other comprehensive income (loss) of unconsolidated subsidiaries | [1],[2] | 21,657 | ||||||||||
Recognition of previously unrealized holding gains | [1] | (377) | ||||||||||
Other comprehensive income (loss), net of tax | [1] | 16,699 | ||||||||||
Comprehensive income (loss), net of tax | [1] | $ (4,307) | ||||||||||
Global Indemnity Limited | Parent Company | ||||||||||||
Revenues: | ||||||||||||
Net investment income | 2,295 | 658 | ||||||||||
Net realized investment gains (losses) | 574 | (154) | ||||||||||
Total revenues | 2,869 | 504 | ||||||||||
Expenses: | ||||||||||||
Intercompany interest expense | [3] | 844 | 7,034 | |||||||||
Interest expense | 264 | 5,960 | ||||||||||
Other expenses | 6,692 | 11,317 | ||||||||||
Income (loss) before income taxes | (4,931) | (23,807) | ||||||||||
Equity in the earnings of liability companies or partnerships | [3] | 74,946 | (32,889) | |||||||||
Net income (loss) | 70,015 | (56,696) | ||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized holding gains (losses) | 872 | (499) | ||||||||||
Equity in other comprehensive income (loss) of unconsolidated subsidiaries | [3] | 38,520 | (19,841) | |||||||||
Reclassification adjustment for gains included in net income (loss) | (552) | 154 | ||||||||||
Other comprehensive income (loss), net of tax | 38,840 | (20,186) | ||||||||||
Comprehensive income (loss), net of tax | $ 108,855 | $ (76,882) | ||||||||||
[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 December 31, 2020 | |||||||||||
[2] | This item has been eliminated in the Company’s Consolidated Financial Statements. | |||||||||||
[3] | This item has been eliminated in the Company’s Consolidated Financial Statements. |
Condensed Financial Informati_5
Condensed Financial Information of Registrant (Parent Only) Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | $ 32,670 | $ 32,376 | $ 42,069 | |
Cash flows from investing activities: | ||||
Proceeds from sale of fixed maturities | 791,554 | 977,321 | 293,348 | |
Proceeds from sale of equity securities | 604,772 | 260,891 | 35,639 | |
Proceeds from maturity of fixed maturities | 119,326 | 180,546 | 55,182 | |
Proceeds from other invested assets | 4,211 | 16,757 | 43,377 | |
Purchases of fixed maturities | (808,618) | (1,129,567) | (370,536) | |
Purchases of equity securities | (455,907) | (365,255) | (36,258) | |
Purchases of other invested assets | (60,297) | (13,283) | (16,309) | |
Net cash provided by (used for) investing activities | 174,585 | (80,244) | 5,320 | |
Cash flows from financing activities: | ||||
Dividends paid to common shareholders | (14,252) | (14,222) | (14,027) | |
Distributions paid to preferred shareholders | (133) | 0 | 0 | |
Issuance of series A cumulative fixed rate preferred shares | 4,000 | 0 | 0 | |
Purchase of class A common shares | (153) | (947) | (1,867) | |
Net cash used for financing activities | (184,167) | (7,358) | (22,306) | |
Net change in cash and cash equivalents | 23,088 | (55,226) | 25,083 | |
Cash and cash equivalents at beginning of period | 44,271 | 99,497 | 74,414 | |
Cash and cash equivalents at end of period | 67,359 | 44,271 | 99,497 | |
Parent Company | Global Indemnity Group LLC | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | [1] | (23,602) | ||
Cash flows from investing activities: | ||||
Proceeds from sale of fixed maturities | [1] | 126,834 | ||
Proceeds from sale of equity securities | [1] | 137,533 | ||
Proceeds from maturity of fixed maturities | [1] | 423 | ||
Proceeds from other invested assets | [1] | 1,700 | ||
Purchases of fixed maturities | [1] | (202,664) | ||
Purchases of equity securities | [1] | (168,795) | ||
Purchases of other invested assets | [1] | (60,000) | ||
Net cash provided by (used for) investing activities | [1] | (164,969) | ||
Cash flows from financing activities: | ||||
Dividends paid to common shareholders | [1] | (14,252) | ||
Distributions paid to preferred shareholders | [1] | (133) | ||
Issuance of series A cumulative fixed rate preferred shares | [1] | 4,000 | ||
Dividends from subsidiaries | [1] | 226,000 | ||
Capital contribution | [1] | (26,466) | ||
Purchase of class A common shares | [1] | (153) | ||
Net cash used for financing activities | [1] | 188,996 | ||
Net change in cash and cash equivalents | [1] | 425 | ||
Cash and cash equivalents at beginning of period | [1] | 977 | ||
Cash and cash equivalents at end of period | [1] | 1,402 | 977 | |
Parent Company | Global Indemnity Limited | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | 2,632 | (20,178) | ||
Cash flows from investing activities: | ||||
Proceeds from sale of fixed maturities | 48,393 | 32,980 | ||
Proceeds from sale of equity securities | 10,900 | 0 | ||
Proceeds from maturity of fixed maturities | 0 | 5,431 | ||
Proceeds from other invested assets | 4,363 | 1,500 | ||
Purchases of fixed maturities | (10,548) | (33,327) | ||
Purchases of equity securities | (41,815) | 0 | ||
Net cash provided by (used for) investing activities | 11,293 | 6,584 | ||
Cash flows from financing activities: | ||||
Proceeds from notes to affiliates | 0 | 230,000 | ||
Debt Restructuring | 0 | (230,000) | ||
Dividends paid to shareholders | (14,222) | (14,027) | ||
Dividends from subsidiaries | 0 | 20,620 | ||
Purchase of class A common shares | (947) | (1,867) | ||
Net cash used for financing activities | (15,169) | 4,726 | ||
Net change in cash and cash equivalents | (1,244) | (8,868) | ||
Cash and cash equivalents at beginning of period | $ 977 | 2,221 | 11,089 | |
Cash and cash equivalents at end of period | $ 977 | $ 2,221 | ||
[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 December 31, 2020 |
Supplementary Insurance Infor_2
Supplementary Insurance Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Premium Revenue | $ 567,699 | $ 525,262 | $ 467,775 |
Benefits, Claims, Losses And Settlement Expenses | 336,201 | 275,402 | 334,625 |
Amortization of Deferred Policy Acquisition Costs | 140,915 | 132,329 | 117,988 |
Net Written Premium | 548,167 | 562,089 | 472,547 |
Commercial Specialty | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 29,033 | 27,415 | 23,059 |
Future Policy Benefits, Losses, Claims And Loss Expenses | 424,994 | 390,148 | 417,175 |
Unearned Premiums | 139,016 | 134,433 | 110,704 |
Other Policy and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 285,694 | 237,758 | 218,357 |
Benefits, Claims, Losses And Settlement Expenses | 155,271 | 108,911 | 114,476 |
Amortization of Deferred Policy Acquisition Costs | 65,406 | 56,339 | 49,715 |
Net Written Premium | 292,216 | 258,719 | 226,827 |
Specialty Property | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 14,682 | 18,249 | 18,161 |
Future Policy Benefits, Losses, Claims And Loss Expenses | 45,268 | 50,334 | 82,722 |
Unearned Premiums | 69,211 | 81,922 | 88,809 |
Other Policy and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 131,474 | 140,232 | 128,768 |
Benefits, Claims, Losses And Settlement Expenses | 94,540 | 75,426 | 122,709 |
Amortization of Deferred Policy Acquisition Costs | 33,835 | 37,811 | 37,854 |
Net Written Premium | 121,111 | 140,670 | 127,470 |
Farm, Ranch & Stable | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 8,786 | 9,612 | 8,897 |
Future Policy Benefits, Losses, Claims And Loss Expenses | 44,841 | 45,601 | 50,923 |
Unearned Premiums | 42,499 | 44,048 | 40,265 |
Other Policy and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 76,166 | 71,312 | 69,248 |
Benefits, Claims, Losses And Settlement Expenses | 47,151 | 42,700 | 41,180 |
Amortization of Deferred Policy Acquisition Costs | 18,473 | 18,307 | 17,536 |
Net Written Premium | 74,163 | 74,416 | 70,217 |
Reinsurance Operations | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 12,694 | 15,401 | 11,559 |
Future Policy Benefits, Losses, Claims And Loss Expenses | 147,708 | 144,098 | 129,211 |
Unearned Premiums | 40,769 | 54,458 | 42,134 |
Other Policy and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 74,365 | 75,960 | 51,402 |
Benefits, Claims, Losses And Settlement Expenses | 39,239 | 48,365 | 56,260 |
Amortization of Deferred Policy Acquisition Costs | 23,201 | 19,872 | 12,883 |
Net Written Premium | $ 60,677 | $ 88,284 | $ 48,033 |
Supplementary Insurance Infor_3
Supplementary Insurance Information Unallocated Corporate Items (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||
Net Investment Income | $ 28,392 | $ 42,052 | $ 46,342 |
Corporate and Other Operating Expenses | $ 41,998 | $ 18,888 | $ 29,766 |
Reinsurance Earned Premiums (De
Reinsurance Earned Premiums (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||||||||
Direct Amount | $ 560,658 | $ 527,018 | $ 483,229 | |||||||||
Ceded to Other Companies | [1] | 62,271 | 78,649 | 83,610 | ||||||||
Assumed from Other Companies | 69,312 | 76,893 | 68,156 | |||||||||
Net premiums | $ 141,082 | $ 140,302 | $ 141,847 | $ 144,468 | $ 141,660 | $ 133,312 | $ 128,201 | $ 122,089 | 567,699 | 525,262 | 467,775 | |
Property & Liability Insurance | ||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||||||||
Direct Amount | 560,658 | 527,018 | 483,229 | |||||||||
Ceded to Other Companies | 62,271 | 78,649 | 83,610 | |||||||||
Assumed from Other Companies | 69,312 | 76,893 | 68,156 | |||||||||
Net premiums | $ 567,699 | $ 525,262 | $ 467,775 | |||||||||
Percentage of Amount Assumed to Net | 12.20% | 14.60% | 14.60% | |||||||||
[1] | Includes ceded written premiums of less than $0.1 million, ($0.3) million, and ($2.1) million and ceded earned premiums of $1.6 million, $2.3 million and $7.3 million to American Bankers Insurance Company for the years ended December 31, 2020, 2019, and 2018, respectively. |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts and Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investment Asset Valuation Reserves, Mortgage Loans | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 0 | $ 0 | $ 0 |
Charged (Credited) to Costs and Expenses | 0 | 0 | 0 |
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Balance at End of Period | 0 | 0 | 0 |
Investment Asset Valuation Reserves, Real Estate | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 0 | 0 | 0 |
Charged (Credited) to Costs and Expenses | 0 | 0 | 0 |
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Balance at End of Period | 0 | 0 | 0 |
Allowance for Doubtful Accounts, Premiums, Accounts and Notes Receivable | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 2,754 | 2,272 | 2,179 |
Charged (Credited) to Costs and Expenses | 146 | 482 | 93 |
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Balance at End of Period | 2,900 | 2,754 | 2,272 |
Allowance for Doubtful Accounts, Deferred Tax Asset Valuation Allowance | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 0 | 0 | 0 |
Charged (Credited) to Costs and Expenses | 0 | 0 | 0 |
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Balance at End of Period | 0 | 0 | 0 |
Allowance for Doubtful Accounts, Reinsurance Receivable | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 8,992 | 8,040 | 8,040 |
Charged (Credited) to Costs and Expenses | 0 | 952 | 0 |
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Other Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 8,992 | $ 8,992 | $ 8,040 |
Supplementary Information for_2
Supplementary Information for Property Casualty Underwriters (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | |||
Deferred Policy Acquisition Costs | $ 65,195 | $ 70,677 | $ 61,676 |
Reserves for Unpaid Claims and Claim Adjustment Expenses | 662,811 | 630,181 | 680,031 |
Discount If Any Deducted | 0 | 400 | 800 |
Unearned Premiums | 291,495 | 314,861 | 281,912 |
Earned Premiums | 567,699 | 525,262 | 467,775 |
Net Investment Income | 28,392 | 42,052 | 46,342 |
Claims and Claim Adjustment Expense Incurred Related To Current Year | 367,739 | 308,211 | 363,423 |
Claims and Claim Adjustment Expense Incurred Related To Prior Year | (31,538) | (32,809) | (28,798) |
Amortization Of Deferred Policy Acquisition Costs | 140,908 | 132,329 | 117,988 |
Paid Claims and Claim Adjustment Expenses | 309,456 | 292,183 | 301,357 |
Premiums Written | $ 548,167 | $ 562,089 | $ 472,547 |