Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Feb. 23, 2021 | |
Cover [Abstract] | ||
Document type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-54627 | |
Entity registrant name | ATLAS FINANCIAL HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | E9 | |
Entity Tax Identification Number | 27-5466079 | |
Entity Address, Address Line One | 953 American Lane | |
Entity Address, Address Line Two | 3rd Floor | |
Entity Address, City or Town | Schaumburg | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60173 | |
City Area Code | 847 | |
Local Phone Number | 472-6700 | |
Title of 12(b) Security | None | |
Trading Symbol | None | |
Entity Central Index Key | 0001539894 | |
Amendment Flag | false | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,047,334 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Position - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 2,987 | $ 9,025 |
Restricted cash | 4,694 | 7,122 |
Premiums receivable (net of allowance of $794 and $800) | 20,770 | 38,607 |
Intangible assets, net | 2,332 | 2,625 |
Property and equipment, net | 19,530 | 21,793 |
Right-of-use asset | 1,068 | 1,592 |
Notes receivable | 15,500 | 15,500 |
Other assets | 4,271 | 3,295 |
Assets held for sale | 46,612 | 51,302 |
Total assets | 117,764 | 150,861 |
Liabilities | ||
Premiums payable | 24,673 | 43,988 |
Operating lease liability | 1,321 | 1,993 |
Due to deconsolidated affiliates | 14,974 | 11,172 |
Notes payable, net | 36,305 | 32,100 |
Other liabilities and accrued expenses | 7,260 | 7,302 |
Liabilities held for sale | 52,762 | 62,767 |
Total liabilities | 137,295 | 159,322 |
Commitments and contingencies (see Note 7) | ||
Shareholders' Deficit | ||
Additional paid-in capital | 81,825 | 81,548 |
Treasury stock, at cost: 255,505 shares of ordinary voting common shares at September 30, 2020 and December 31, 2019, respectively | (3,000) | (3,000) |
Retained deficit | (99,019) | (87,469) |
Accumulated other comprehensive income, net of tax | 627 | 424 |
Total shareholders' deficit | (19,531) | (8,461) |
Total liabilities and shareholders' deficit | 117,764 | 150,861 |
Ordinary Voting Common Shares | ||
Shareholders' Deficit | ||
Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued: September 30, 2020 - 12,240,198 and December 31, 2019 - 12,198,319; shares outstanding: September 30, 2020 - 11,984,693 and December 31, 2019 - 11,942,812 | 36 | 36 |
Restricted voting common shares | ||
Shareholders' Deficit | ||
Restricted voting common shares, $0.003 par value, 33,333,334 shares authorized, shares issued and outstanding: September 30, 2020 and December 31, 2019 - 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Position (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement [Line Items] | ||
Premiums receivable, allowance | $ 794 | $ 800 |
Shareholders' Deficit | ||
Common stock, shares authorized (in shares) | 300,000,001 | |
Common stock, shares issued (in shares) | 12,240,198 | 12,198,319 |
Common stock, shares outstanding (in shares) | 11,984,693 | 11,942,812 |
Treasury stock, common stock, shares held (in shares) | 255,505 | 255,505 |
Ordinary Voting Common Shares | ||
Shareholders' Deficit | ||
Common stock, par value (USD per share) | $ 0.003 | $ 0.003 |
Common stock, shares authorized (in shares) | 266,666,667 | 266,666,667 |
Common stock, shares issued (in shares) | 12,240,198 | 12,198,319 |
Common stock, shares outstanding (in shares) | 11,984,693 | 11,942,812 |
Restricted Voting Common Shares | ||
Shareholders' Deficit | ||
Common stock, par value (USD per share) | $ 0.003 | |
Common stock, shares authorized (in shares) | 33,333,334 | |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net premiums earned | $ 0 | $ 34,528 | $ 0 | $ 110,241 |
Commission income | 1,674 | 860 | 4,677 | 4,666 |
Net investment income | 0 | 329 | 0 | 1,884 |
Loss from change in fair value of equity securities | 0 | (3) | 0 | (277) |
Net realized gains | 0 | 384 | 0 | 1,138 |
Other income | 367 | 117 | 848 | 379 |
Total revenue | 2,041 | 36,215 | 5,525 | 118,031 |
Net claims incurred | 0 | 25,099 | 0 | 80,767 |
Acquisition costs | 862 | 3,758 | 2,737 | 11,405 |
Other underwriting expenses | 4,222 | 9,757 | 12,803 | 30,568 |
Amortization of intangible assets | 98 | 98 | 293 | 293 |
Interest expense, net | 571 | 466 | 1,392 | 1,143 |
Total expenses | 5,753 | 39,178 | 17,225 | 124,176 |
Loss from operations before income taxes | (3,712) | (2,963) | (11,700) | (6,145) |
Income tax (benefit) expense | (148) | 26 | (271) | 26 |
Loss from continuing operations | (3,564) | (2,989) | (11,429) | (6,171) |
Income (loss) from discontinued operations, net of tax | 39 | 747 | (121) | (23) |
Net loss | $ (3,525) | $ (2,242) | $ (11,550) | $ (6,194) |
Basic net (loss) income per share attributable to common shareholders | ||||
Continuing operations (in dollars per share) | $ (0.30) | $ (0.25) | $ (0.96) | $ (0.52) |
Discontinued operations (in dollars per share) | 0 | 0.06 | (0.01) | 0 |
Net loss (in dollars per share) | (0.30) | (0.19) | (0.97) | (0.52) |
Diluted net (loss) income per share attributable to common shareholders | ||||
Continuing operations (in dollars per share) | (0.30) | (0.25) | (0.96) | (0.52) |
Discontinued operations (in dollars per share) | 0 | 0.06 | (0.01) | 0 |
Net loss (in dollars per share) | $ (0.30) | $ (0.19) | $ (0.97) | $ (0.52) |
Basic weighted average common shares outstanding (in shares) | 11,971,490 | 11,954,494 | 11,946,051 | 11,954,494 |
Diluted weighted average common shares outstanding (in shares) | 11,971,490 | 11,954,494 | 11,946,051 | 11,954,494 |
Condensed Consolidated Statements of Comprehensive (Loss) Income | ||||
Net loss | $ (3,525) | $ (2,242) | $ (11,550) | $ (6,194) |
Other comprehensive income: | ||||
Changes in net unrealized investment gains (losses) | 54 | (195) | 299 | 2,243 |
Reclassification to net loss | (3) | 541 | (96) | 1,917 |
Other comprehensive income | 51 | 346 | 203 | 4,160 |
Total comprehensive loss | $ (3,474) | $ (1,896) | $ (11,347) | $ (2,034) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Ordinary Voting Common Shares | Restricted Voting Common Shares | Additional Paid-In Capital | Treasury Stock | Retained Deficit | Accumulated Other Comprehensive (Loss)/Income |
Balance at beginning of period at Dec. 31, 2018 | $ 5,699 | $ 36 | $ 0 | $ 202,298 | $ (3,000) | $ (190,503) | $ (3,132) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (839) | (839) | |||||
Other comprehensive income (loss) | 2,332 | 2,332 | |||||
Share-based compensation | 310 | 310 | |||||
Balance at end of period at Mar. 31, 2019 | 7,502 | 36 | 0 | 202,608 | (3,000) | (191,342) | (800) |
Balance at beginning of period at Dec. 31, 2018 | 5,699 | 36 | 0 | 202,298 | (3,000) | (190,503) | (3,132) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (6,194) | ||||||
Balance at end of period at Sep. 30, 2019 | 4,350 | 36 | 0 | 202,983 | (3,000) | (196,697) | 1,028 |
Balance at beginning of period at Mar. 31, 2019 | 7,502 | 36 | 0 | 202,608 | (3,000) | (191,342) | (800) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (3,113) | (3,113) | |||||
Other comprehensive income (loss) | 1,482 | 1,482 | |||||
Share-based compensation | 187 | 187 | |||||
Balance at end of period at Jun. 30, 2019 | 6,058 | 36 | 0 | 202,795 | (3,000) | (194,455) | 682 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (2,242) | (2,242) | |||||
Other comprehensive income (loss) | 346 | 346 | |||||
Share-based compensation | 188 | 188 | |||||
Balance at end of period at Sep. 30, 2019 | 4,350 | 36 | 0 | 202,983 | (3,000) | (196,697) | 1,028 |
Balance at beginning of period at Dec. 31, 2019 | (8,461) | 36 | 0 | 81,548 | (3,000) | (87,469) | 424 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (3,291) | (3,291) | |||||
Other comprehensive income (loss) | (149) | (149) | |||||
Share-based compensation | 179 | 179 | |||||
Balance at end of period at Mar. 31, 2020 | (11,722) | 36 | 0 | 81,727 | (3,000) | (90,760) | 275 |
Balance at beginning of period at Dec. 31, 2019 | (8,461) | 36 | 0 | 81,548 | (3,000) | (87,469) | 424 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (11,550) | ||||||
Balance at end of period at Sep. 30, 2020 | (19,531) | 36 | 0 | 81,825 | (3,000) | (99,019) | 627 |
Balance at beginning of period at Mar. 31, 2020 | (11,722) | 36 | 0 | 81,727 | (3,000) | (90,760) | 275 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (4,734) | (4,734) | |||||
Other comprehensive income (loss) | 301 | 301 | |||||
Share-based compensation | 16 | 16 | |||||
Balance at end of period at Jun. 30, 2020 | (16,139) | 36 | 0 | 81,743 | (3,000) | (95,494) | 576 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (3,525) | (3,525) | |||||
Other comprehensive income (loss) | 51 | 51 | |||||
Share-based compensation | 82 | 82 | |||||
Balance at end of period at Sep. 30, 2020 | $ (19,531) | $ 36 | $ 0 | $ 81,825 | $ (3,000) | $ (99,019) | $ 627 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | ||||||||
Net loss | $ (3,525) | $ (3,291) | $ (2,242) | $ (839) | $ (11,550) | $ (6,194) | ||
Adjustments to reconcile net income to net cash flows used in operating activities: | ||||||||
Loss from discontinued operations, net of taxes | 121 | 23 | ||||||
Depreciation and amortization | 741 | 1,100 | 2,463 | 2,988 | ||||
Share-based compensation expense | 277 | 685 | ||||||
Amortization of intangible assets | 98 | 98 | 293 | 293 | ||||
Loss from change in fair value of equity securities | 0 | 3 | 0 | 277 | ||||
Net realized gains | 0 | (384) | 0 | (1,138) | ||||
Gain in equity of investees | 0 | (563) | ||||||
Amortization of bond premiums and discounts | 0 | 218 | ||||||
Amortization of financing costs | 168 | 168 | ||||||
Net changes in operating assets and liabilities: | ||||||||
Accrued investment income | 0 | 200 | ||||||
Premiums receivable, net | 14,659 | 16,428 | ||||||
Due from reinsurers and prepaid reinsurance premiums | 0 | (12,708) | ||||||
Deferred policy acquisition costs | 0 | 1,908 | ||||||
Other assets | (3,179) | 6,879 | ||||||
Claims liabilities | 0 | (21,484) | ||||||
Unearned premium reserves | 0 | (15,879) | ||||||
Due to reinsurers | 0 | (6,522) | ||||||
Premiums payable | (19,316) | 0 | ||||||
Due to deconsolidated affiliates | 3,802 | 0 | ||||||
Other liabilities and accrued expenses | (41) | 80 | ||||||
Net cash flows used in operating activities - continuing operations | (12,303) | (34,341) | ||||||
Net cash flows used in operating activities - discontinued operations | (13,721) | (8,343) | ||||||
Net cash flows used in operating activities | (26,024) | (42,684) | ||||||
Purchases of: | ||||||||
Fixed income securities | 0 | (11,506) | ||||||
Other investments | 0 | (680) | ||||||
Short-term investments | 0 | (11,716) | ||||||
Property and equipment | (200) | (2,316) | ||||||
Proceeds from sale and maturity of: | ||||||||
Fixed income securities | 0 | 52,364 | ||||||
Equity securities | 0 | 5,997 | ||||||
Other investments | 0 | 7,390 | ||||||
Short-term investments | 0 | 8,868 | ||||||
Net cash flows (used in) provided by investing activities - continuing operations | (200) | 48,401 | ||||||
Net cash flows provided by investing activities - discontinued operations | 7,187 | 13,389 | ||||||
Net cash flows provided by investing activities | 6,987 | 61,790 | ||||||
Financing activities: | ||||||||
Proceeds from notes payable | 4,601 | 0 | ||||||
Repayment of notes payable | (564) | 0 | ||||||
Net cash flows provided by financing activities - continuing operations | 4,037 | 0 | ||||||
Net cash flows provided by financing activities - discontinued operations | 0 | 0 | ||||||
Net cash flows provided by financing activities | 4,037 | 0 | ||||||
Net change in cash and cash equivalents and restricted cash - continuing operations | (8,466) | 14,060 | ||||||
Cash and cash equivalents and restricted cash, beginning of period | $ 23,859 | $ 34,902 | ||||||
Less: cash and cash equivalents of discontinued operations - beginning of period | 7,712 | $ 747 | ||||||
Cash and cash equivalents and restricted cash, beginning of period | $ 16,147 | $ 34,155 | 16,147 | 34,155 | 34,155 | |||
Cash and cash equivalents and restricted cash of continuing operations, end of period | $ 7,681 | $ 48,215 | 7,681 | 48,215 | $ 16,147 | |||
Supplemental disclosure of cash information: | ||||||||
Cash (recovered) paid for income taxes | (2,790) | (14,349) | ||||||
Cash (recovered) paid for interest | $ 1,521 | $ 1,242 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Atlas Financial Holdings, Inc. (“Atlas” or “We” or the “Company”) commenced operations on December 31, 2010. The primary business of Atlas focuses on a managing general agency strategy, primarily through our wholly owned subsidiary, Anchor Group Management, Inc. (“AGMI”). AGMI focuses on a niche market orientation for the “light” commercial automobile sector. This sector includes taxi cabs, non-emergency para-transit, limousine, livery, including certain transportation network companies (“TNC”) drivers/operators, and business autos. Automobile insurance products provide insurance coverage in three major areas: liability, accident benefits and physical damage. Atlas’ business is carried out through its non-insurance company subsidiaries: AGMI, Plainview Premium Finance Company, Inc. (“Plainview Delaware”), UBI Holdings Inc. (“UBI Holdings”) and UBI Holdings’ wholly-owned subsidiaries, optOn Digital IP Inc. (“OOIP”) and optOn Insurance Agency Inc. (“optOn” and together with OOIP and UBI Holdings, “UBI”). Prior to a strategic transition, our core business was the underwriting of commercial automobile insurance policies, focusing on the “light” commercial automobile sector, through American Country Insurance Company (“American Country”), American Service Insurance Company, Inc. (“American Service”) and Gateway Insurance Company (“Gateway” and together with American Country and American Service, the “ASI Pool Companies”) and Global Liberty Insurance Company of New York (“Global Liberty” and together with the ASI Pool Companies, our “Insurance Subsidiaries”), along with our wholly owned managing general agency, AGMI. The ASI Pool Companies were placed into rehabilitation under the statutory control of the Illinois Department of Insurance during the second half of 2019 and have been deconsolidated from our consolidated financial statements as of October 1, 2019 as a result of these actions. Other regulatory actions were taken in certain states, including restriction, suspension, or revocation of certain state licenses and certificates of authority held by the ASI Pool Companies preceding and following the initiation of rehabilitation. During the fourth quarter of 2019, the Company began actively pursuing the potential sale of Global Liberty, and as a result, Global Liberty has been classified as a discontinued operation. The Insurance Subsidiaries distribute their insurance products through AGMI, which has contracted a network of retail independent agents. Together, the Insurance Subsidiaries are licensed to write property and casualty (“P&C”) insurance in 49 states and the District of Columbia in the U.S. Atlas’ core products are actively distributed in 42 of those states plus the District of Columbia. The Insurance Subsidiaries and the Company’s other non-insurance subsidiaries share common management and operating infrastructure. During the third quarter of 2019, new business writings were restricted or stopped in connection with certain of the Insurance Subsidiaries. See “Note 19, Subsequent Events” and “Part I, Item 2, 2020 Developments” for certain developments with respect to the Company and the Insurance Subsidiaries subsequent to September 30, 2020. Atlas’ ordinary common shares trade on the OTC Markets system under the symbol “AFHIF” (see Note 19, Subsequent Events). Basis of Presentation These statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Atlas and the entities it controls. Equity investments in entities that we do not consolidate, including corporate entities in which we have significant influence and partnership and partnership-like entities in which we have more than minor influence over operating and financial policies, are accounted for under the equity method unless we have elected the fair value option. All significant intercompany accounts and transactions have been eliminated. The results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results expected for the full calendar year. The accompanying unaudited condensed consolidated financial statements, in accordance with Securities and Exchange Commission (“SEC”) rules for interim periods, do not include all of the information and notes required by U.S. GAAP for complete financial statements and should be read in conjunction with Atlas’ Annual Report on Form 10-K for the year ended December 31, 2019, which provides a more complete understanding of the Company’s accounting policies, financial position, operating results, business properties, and other matters. Atlas has consistently applied the same accounting policies throughout all periods presented. Estimates and Assumptions The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and changes in estimates are recorded in the accounting period in which they are determined Significant estimates in the accompanying financial statements include deferred tax asset valuation, and allowances on premiums and notes receivable. Revenue Recognition Revenues from contracts with customers include both commission and fee income. The recognition and measurement of revenue is based on the assessments of individual contract terms. As an MGA, the Company has contracts with various insurance carriers which determines the Company’s commission income revenue. Each contract specifies what our performance obligations are as an MGA and what determines our commission income revenue, generally gross written premiums, net of cancellations and refunds. Under these contracts there are a number of performance obligations; however, it is the bundle of these services and not a single obligation that results in the performance of the MGA under the contracts. The Company considers these performance obligations as a non-bifurcated bundle of services where the performance obligations are satisfied simultaneous to the point in time where the Company issues a policy, or cancels a policy to an insured. The commission rate stated in the individual contract is the standalone selling price of these non-bifurcated services which is allocated to the service bundle and not to any individual obligation under the various contracts. The revenue included as commission income for the three months ended September 30, 2020 and 2019 was $1.7 million and $860,000, respectively and $4.7 million for each of the nine months ended September 30, 2020 and 2019. The balance of receivables related to contracts with customers, which is recorded as part of premiums receivable on the Condensed Consolidated Statements of Financial Position as of September 30, 2020 and December 31, 2019 totaled $3.1 million and $1.4 million, respectively. Premium income is recognized on a pro-rata basis over the terms of the respective insurance contracts. Seasonality The P&C insurance business is seasonal in nature. Our ability to generate commission income is also impacted by the timing of policy effective periods in the states in which we operate and products provided by our business partners. For example, January 1 st and March 1 st are common taxi cab renewal dates in Illinois and New York, respectively. Operating Segments |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | New Accounting StandardsThere have been no recent pronouncements or changes in pronouncements during the nine months ended September 30, 2020, as compared to those described in our Annual Report on Form 10-K for the twelve months ended December 31, 2019, that are of significance or potential significance to Atlas. Pertinent Accounting Standard Updates (“ASUs”) are issued from time to time by the Financial Accounting Standards Board (“FASB”) and are adopted by the Company as they become effective. All recently issued accounting pronouncements with effective dates prior to October 1, 2020 have been adopted by the Company. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets Intangible Assets by Major Asset Class ($ in ‘000s) Economic Useful Life Gross Carrying Amount Accumulated Amortization Net As of September 30, 2020 Trade name and trademark 15 years $ 1,800 $ 673 $ 1,127 Customer relationship 10 years 2,700 1,495 1,205 $ 4,500 $ 2,168 $ 2,332 As of December 31, 2019 Trade name and trademark 15 years $ 1,800 $ 581 $ 1,219 Customer relationship 10 years 2,700 1,294 1,406 $ 4,500 $ 1,875 $ 2,625 |
Loss From Continuing Operations
Loss From Continuing Operations per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Loss From Continuing Operations per Share | Loss From Continuing Operations per Share Computations of Basic and Diluted Loss per Common Share from Continuing Operations ($ in ‘000s, except share and per share amounts) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Basic Loss from continuing operations before income taxes $ (3,712) $ (2,963) $ (11,700) $ (6,145) Income tax (benefit) expense (148) 26 (271) 26 Net loss attributable to common shareholders from continuing operations $ (3,564) $ (2,989) $ (11,429) $ (6,171) Basic weighted average common shares outstanding 11,971,490 11,954,494 11,946,051 11,954,494 Loss per common share basic from continuing operations $ (0.30) $ (0.25) $ (0.96) $ (0.52) Diluted Basic weighted average common shares outstanding 11,971,490 11,954,494 11,946,051 11,954,494 Dilutive potential ordinary shares: Dilutive stock options outstanding — — — — Diluted weighted average common shares outstanding 11,971,490 11,954,494 11,946,051 11,954,494 Loss per common share diluted from continuing operations $ (0.30) $ (0.25) $ (0.96) $ (0.52) Common shares are defined as ordinary voting common shares, restricted voting common shares and participative restricted stock units (“RSUs”). Earnings per common share diluted is computed by dividing net income by the weighted average number of common shares outstanding for each period plus the incremental number of shares added as a result of converting dilutive potential ordinary voting common shares, calculated using the treasury stock method. Atlas’ potential dilutive ordinary voting common shares consists of outstanding stock options to purchase ordinary voting common shares and warrants to purchase 2,387,368 ordinary voting common shares of Atlas for $0.69 per share. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2020 | |
Investments [Abstract] | |
Investments | Investments Components of Net Investment Income ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Total investment income: Interest income $ — $ 525 $ — $ 1,859 Income from other investments — 45 — 794 Investment expenses — (241) — (769) Net investment income $ — $ 329 $ — $ 1,884 Aggregate Proceeds and Gross Realized Investment Gains and Losses ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Fixed income securities: Proceeds from sales and calls $ — $ 10,177 $ — $ 42,102 Gross realized investment gains — 120 — 438 Gross realized investment losses — (32) — (201) Equities: Proceeds from sales $ — $ — $ — $ 5,997 Gross realized investment gains — — — 443 Gross realized investment losses — — — (96) Other investments: Proceeds from sales $ — $ 1,700 $ — $ 3,997 Gross realized investment gains — 297 — 576 Total: Proceeds from sales and calls $ — $ 11,877 $ — $ 52,096 Gross realized investment gains — 417 — 1,457 Gross realized investment losses — (32) — (297) Components of Net Realized Gains ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Fixed income securities $ — $ 88 $ — $ 237 Equities — — — 347 Other investments — 296 — 554 Net realized gains $ — $ 384 $ — $ 1,138 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Reconciliation of U.S. Statutory Marginal Income Tax Rate to the Effective Tax Rate - Continuing Operations ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Amount % Amount % Amount % Amount % Provision for taxes at U.S. statutory marginal income tax rate $ (779) 20.5 % $ (623) 21.0 $ (2,456) 21.0 % $ (1,291) 21.0 Provision for deferred tax assets deemed unrealizable (valuation allowance) (12) 0.3 626 (21.1) 1,571 (13.4) 1,242 (20.2) Nondeductible expenses 1 — 3 (0.1) 2 — 26 (0.4) Tax-exempt income — — (1) — — — (3) — State tax (net of federal benefit) — — 21 (0.7) — — 21 (0.3) Stock compensation 642 (16.9) — — 654 (5.6) 31 (0.5) Tax rate differential — — — — (42) 0.3 — — Provision for income taxes for continuing operations $ (148) 3.9 % $ 26 (0.9) % $ (271) 2.3 % $ 26 (0.4) % Reconciliation of U.S. Statutory Marginal Income Tax Rate to the Effective Tax Rate - Discontinued Operations ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Amount % Amount % Amount % Amount % Provision for taxes at U.S. statutory marginal income tax rate $ 8 21.0 % $ 157 21.0 % $ (134) 21.0 % $ (5) 21.0 % Provision for deferred tax assets deemed unrealizable (valuation allowance) (9) (21.8) (156) (21.0) (189) 29.3 4 (16.1) Nondeductible expenses 1 0.8 — — 1 (0.2) 2 (9.4) Tax-exempt income — — (1) — — — (1) 4.5 Tax rate differential — — — — (200) 31.0 — — Provision for income taxes for discontinued operations $ — — % $ — — % $ (522) 81.1 % $ — — % Components of Income Tax (Benefit) Expense - Continuing Operations ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Current tax (benefit) expense $ (148) $ 26 $ (271) $ 26 Components of Income Tax Benefit - Discontinued Operations ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Current tax benefit $ — $ — $ (522) $ — During 2013 and 2019, due to shareholder activity, “triggering events” as determined under IRC Section 382 occurred. As a result, under IRC Section 382, the use of the Company’s net operating loss and other carryforwards generated prior to the “triggering events” will be subject to a yearly limitation as a result of this “ownership change” for tax purposes, which is defined as a cumulative change of more than 50% during any three-year period by shareholders owning 5% or greater portions of the Company’s shares. Due to the mechanics of the Section 382 calculation when there are multiple triggering events the Company’s losses will generally be limited based on the thresholds of the 2019 triggering event. The Company has established a valuation allowance against the NOLs that will expire unused as a result of the yearly limitation. Components of Deferred Income Tax Assets and Liabilities ($ in ‘000s) September 30, 2020 December 31, 2019 Gross deferred tax assets: Losses carried forward $ 13,042 $ 10,264 Claims liabilities and unearned premium reserves 354 554 Investment in affiliates 23,707 24,450 Bad debts 167 168 Stock compensation 276 873 Other 160 81 Valuation allowance (33,119) (32,522) Total gross deferred tax assets 4,587 3,868 Gross deferred tax liabilities: Deferred policy acquisition costs 143 112 Investments 162 116 Fixed assets 1,477 2,099 Intangible assets 490 551 Other 2,315 990 Total gross deferred tax liabilities 4,587 3,868 Net deferred tax assets $ — $ — Net Operating Loss Carryforward as of September 30, 2020 by Expiry ($ in ‘000s) Year of Occurrence Year of Expiration Amount 2011 2031 $ 1 2012 2032 70 2015 2035 1 2017 2037 13,649 2018 2038 8,903 2018 Indefinite 8,245 2019 2039 10,863 2019 Indefinite 6,306 2020 2040 8,460 2020 Indefinite 5,605 Total $ 62,103 Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which they can be utilized. When considering the extent of the valuation allowance on Atlas’ deferred tax assets, weight is given by management to both positive and negative evidence. U.S. GAAP states that a cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome in determining that a valuation allowance is not needed against deferred tax assets. Based on Atlas’ cumulative loss in recent years and certain deferred tax assets subject to a yearly limitation under Section 382 which will likely result in expiration before utilization, Atlas has recorded a valuation allowance of $33.1 million and $32.5 million for its gross future deferred tax assets as of September 30, 2020 and December 31, 2019, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesIn the ordinary course of its business, Atlas is involved in legal proceedings, including lawsuits, regulatory examinations and inquiries. Atlas is exposed to credit risk on balances receivable from insureds and agents. Credit exposure to any one individual insured is not material due to the “in-equity” payment terms offered. The policies placed with risk taking partners are distributed by agents who may manage cash collection on its behalf pursuant to the terms of their agency agreement. Atlas has procedures to monitor and minimize its exposure to delinquent agent balances, including, but not limited to, reviewing account current statements, processing policy cancellations for non-payment and other collection efforts deemed appropriate. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and Equipment Held 1 ($ in ‘000s) September 30, 2020 December 31, 2019 Buildings $ 7,425 $ 7,425 Land 1,840 1,840 Building improvements 9,031 9,023 Leasehold improvements 193 193 Internal use software 12,795 12,610 Computer equipment 1,921 1,925 Furniture and other office equipment 1,121 1,150 Total $ 34,326 $ 34,166 Accumulated depreciation and amortization (14,796) (12,373) Total property and equipment, net $ 19,530 $ 21,793 1 Excluding assets held for sale. Depreciation expense and amortization from continuing operations was $741,000 and $1.1 million for the three months ended September 30, 2020 and 2019, respectively, and $2.5 million and $3.0 million for the nine months ended September 30, 2020 and 2019, respectively. As part of a cost sharing agreement with affiliates under common ownership, depreciation expense of $0 and $49,000 was allocated to Global Liberty during the three months ended September 30, 2020 and 2019, respectively, and $0 and $250,000 for the nine months ended September 30, 2020 and 2019, respectively. For the year ended December 31, 2019, depreciation expense and amortization from continuing operations was $3.9 million, and $250,000 was allocated to Global Liberty as part of the cost sharing agreement with affiliates under common ownership. For the nine months ended September 30, 2020 and 2019, the Company capitalized $185,000 and $2.2 million, respectively, of costs incurred, consisting primarily of external consultants and internal labor costs incurred during the application development stage for internal-use software. Substantially all of the costs incurred during the period were part of the application development stage. Amortization expense recorded for projects in the post-implementation/operation stage was $308,000 and $578,000 for the three months ended September 30, 2020 and 2019, respectively, and $1.1 million and $1.5 million for the nine months ended September 30, 2020 and 2019, respectively. During 2016, Atlas purchased a building and land to serve as its new corporate headquarters to replace its former leased office space. Atlas’ Chicago area staff moved into this space in late October 2017 and occupies approximately 70,000 square feet in the building. An unrelated tenant occupies the remaining office space in the building. Rental income related to this lease agreement was $116,000 and $111,000 for the three months ended September 30, 2020 and 2019, respectively, and $346,000 and $334,000 for the nine months ended September 30, 2020 and 2019, respectively. Depreciation expense related to the building and its improvements was $284,000 and $283,000 for the three months ended September 30, 2020 and 2019, respectively, and $833,000 and $850,000 for the nine months ended September 30, 2020 and 2019, respectively. Loss on disposals of fixed assets totaled $0 and $21,000 for three and nine months ended September 30, 2019, respectively. There were no losses on disposals of fixed assets for the three and nine months ended September 30, 2020. |
Reinsurance Ceded
Reinsurance Ceded | 9 Months Ended |
Sep. 30, 2020 | |
Underwriting Policy and Reinsurance Ceded [Abstract] | |
Reinsurance Ceded | Reinsurance Ceded As is customary in the insurance industry, Atlas reinsures portions of certain insurance policies it writes, thereby providing a greater diversification of risk and minimizing exposure on larger risks. Atlas remains contingently at risk with respect to any reinsurance ceded and would incur an additional loss if an assuming company were unable to meet its obligation under the reinsurance treaty. Atlas monitors the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Letters of credit are maintained for any unauthorized reinsurer to cover ceded unearned premium reserves, ceded claims and claims adjustment expense reserve balances and ceded paid claims. These policies mitigate the risk of credit quality or dispute from becoming a danger to financial strength. To date, the Company has not experienced any material difficulties in collecting reinsurance recoverables. The below table represents activity of the ASI Pool Companies for the three and nine months ended September 30, 2020 and 2019. The activity for Global Liberty has not been included as a result of being classified as a discontinued operation. The ASI Pool Companies were deconsolidated as of October 1, 2019. Premiums Written, Premiums Earned and Amounts Related to Reinsurance ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Direct premiums written $ — $ 26,488 $ — $ 133,827 Assumed premiums written — 4,301 — 26,857 Ceded premiums written — (10,672) — (72,911) Net premiums written $ — $ 20,117 $ — $ 87,773 Direct premiums earned $ — $ 46,831 $ — $ 149,609 Assumed premiums earned — 9,595 — 26,954 Ceded premiums earned — (21,898) — (66,322) Net premiums earned $ — $ 34,528 $ — $ 110,241 Ceded claims and claims adjustment expenses $ — $ 14,013 $ — $ 31,551 Ceding commissions $ — $ 3,919 $ — $ 16,381 |
Claims Liabilities
Claims Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Insurance Loss Reserves [Abstract] | |
Claims Liabilities | Claims Liabilities The below table represents activity of the ASI Pool Companies for the three and nine months ended September 30, 2020 and 2019. The activity for Global Liberty has not been included as a result of being classified as a discontinued operation. The ASI Pool Companies were deconsolidated as of October 1, 2019. Changes in the Provision for Unpaid Claims and Claims Adjustment Expenses, Net of Reinsurance Recoverables ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Unpaid claims and claims adjustment expenses, beginning of period $ — $ 206,996 $ — $ 226,487 Less: reinsurance recoverable — 55,533 — 55,265 Net unpaid claims and claims adjustment expenses, beginning of period — 151,463 — 171,222 Incurred related to: Current year — 23,509 — 78,613 Prior years — 1,590 — 2,154 — 25,099 — 80,767 Paid related to: Current year — 9,756 — 22,182 Prior years — 26,969 — 89,970 — 36,725 — 112,152 Net unpaid claims and claims adjustment expenses, end of period — 139,837 — 139,837 Add: reinsurance recoverable — 65,166 — 65,166 Unpaid claims and claims adjustment expenses, end of period $ — $ 205,003 $ — $ 205,003 The process of establishing the estimated provision for unpaid claims and claims adjustment expenses is complex and imprecise, as it relies on the judgment and opinions of a large number of individuals, on historical precedent and trends, on prevailing legal, economic, social and regulatory trends, and on expectations as to future developments. The process of determining the provision necessarily involves risks that the actual results may deviate, perhaps substantially, from the best estimates made. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation On January 6, 2011, Atlas adopted a stock option plan (“Stock Option Plan”) in order to advance the interests of Atlas by providing incentives to eligible persons defined in the plan. In the second quarter of 2013, a new equity incentive plan (“Equity Incentive Plan”) was approved by the Company’s common shareholders at the Annual General Meeting, and Atlas ceased to grant new stock options under the preceding Stock Option Plan. The Equity Incentive Plan is a securities based compensation plan, pursuant to which Atlas may issue restricted stock grants for ordinary voting common shares, restricted stock, stock grants for ordinary voting common shares, stock options and other forms of equity incentives to eligible persons as part of their compensation. The Equity Incentive Plan is considered an amendment and restatement of the Stock Option Plan, although outstanding stock options issued pursuant to the Stock Option Plan will continue to be governed by the terms of the Stock Option Plan. Stock Options Stock Option Activity (prices in Canadian dollars designated with “C$” and U.S. dollars designated with “US$” Nine months ended September 30, 2020 2019 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price C$ Denominated: Outstanding, beginning of period 27,195 C$6.00 27,195 C$6.00 Granted — — — — Exercised — — — — Canceled (27,195) C$6.00 — — Outstanding, end of period — — 27,195 C$6.00 US$ Denominated: Outstanding, beginning of period 375,000 US$17.01 375,000 US$17.01 Granted — — — — Exercised — — — — Canceled (193,500) US$18.73 — — Outstanding, end of period 181,500 US$13.51 375,000 US$17.01 There are no stock options that are exercisable as of September 30, 2020. The stock option grants outstanding have a weighted average remaining life of 3.47 years and have an intrinsic value of $0 as of September 30, 2020. In association with his retirement from the Company’s board of directors, 27,195 options held by Gordon Pratt were canceled effective August 1, 2020. On March 12, 2015, the Board of Directors of Atlas granted equity awards of (i) 200,000 restricted stock grants for ordinary voting common shares of the Company and (ii) 200,000 options to acquire ordinary voting common shares to the executive officers of the Company as part of the Company’s annual compensation process. The awards were made under the Company’s Equity Incentive Plan. The awards vest in five On December 31, 2018, the Company awarded restricted stock unit grants for ordinary voting common shares of the Company to its external directors pursuant to a director equity award agreement dated December 31, 2018. The awards, which were approved by the Company’s Board of Directors in March 2018, were valued at $40,000 per external director (“Aggregate Award”) and were made under the Company’s Equity Incentive Plan. The number of restricted stock units awarded was determined by dividing (A) the Aggregate Award by (B) the closing price of a Company ordinary voting common share at the close of market on April 4, 2018, which was $10.50 per share. For new directors, the Aggregate Award is proportionate to the director’s start date and priced as of that same day. During 2018, the Company awarded 17,524 RSU grants having an aggregate grant date fair value of $179,000. The RSUs will vest 33.3% on January 1 of each year with the last vesting period of January 1, 2021. Restricted Shares Restricted Stock Grants for Ordinary Voting Common Shares and Restricted Share Unit Activity Nine months ended September 30, 2020 2019 Number of Shares Weighted Average Fair Value at Grant Date Number of Shares Weighted Average Fair Value at Grant Date Non-vested, beginning of period $ 171,682 $ 17.46 $ 207,156 $ 16.50 Granted — — — — Vested (8,381) 10.22 (28,066) 11.79 Canceled (160,000) 9.62 (7,408) 12.20 Non-vested, end of period $ 3,301 $ 10.22 $ 171,682 $ 17.46 During the first quarter of 2019, 7,408 restricted share units related to a February 2014 grant to an independent director were canceled at such director’s request. During the first quarter of 2020, 140,000 ordinary voting restricted common shares were canceled as a result of not meeting annual performance targets. Also during the first quarter of 2020, an additional 20,000 restricted common shares were canceled due to the departure of a former officer. During the third quarter of 2020, 2,540 restricted share units vested related to the retirement of two former directors. In accordance with ASC 718 (Stock-Based Compensation), Atlas has recognized share-based compensation expense on a straight-line basis over the requisite service period of the last separately vesting portion of the award. Share-based compensation expense is a component of other underwriting expenses on the condensed consolidated statements of operations. Atlas recognized $82,000 and $188,000 in share-based compensation expense, including income tax expense, for the three months ended September 30, 2020 and 2019, respectively, and $277,000 and $685,000 for the nine months ended September 30, 2020 and 2019, respectively. As of September 30, 2020, there was $15,000 of unrecognized total compensation expense related to restricted stock and restricted stock units for ordinary voting common shares. The expense will be amortized over a weighted average period of 3 months. |
Other Employee Benefit Plans
Other Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2020 | |
Other Employee Benefit Plans [Abstract] | |
Other Employee Benefit Plans | Other Employee Benefit Plans Defined Contribution Plan Atlas has a defined contribution 401(k) plan covering all qualified employees of Atlas and its subsidiaries. Contributions to this plan are limited based on IRS guidelines. Atlas matches 100% of the employee contribution up to 2.5% of annual earnings, plus 50% of additional contributions up to 2.5% of annual earnings, for a total maximum expense of 3.75% of annual earnings per participant. Atlas’ matching contributions are discretionary. Employees are 100% vested in their own contributions and vest in Atlas contributions based on years of service equally over 5 years with 100% vested after 5 years. Company contributions were $19,000 and $119,000 for the three months ended September 30, 2020 and 2019, respectively, and $77,000 and $381,000 for the nine months ended September 30, 2020 and 2019, respectively. The matching portion of this plan was suspended during the third quarter of 2020. Employee Stock Purchase Plan The Atlas Employee Stock Purchase Plan (“ESPP”) encourages employee interest in the operation, growth and development of Atlas and provides an additional investment opportunity to employees. Full time and permanent part time employees working more than 30 hours per week are allowed to invest up to 7.5% of adjusted salary in Atlas ordinary voting common shares. Atlas matches 100% of the employee contribution up to 2.5% of annual earnings, plus 50% of additional contributions up to 5% of annual earnings, for a total maximum expense of 5% of annual earnings per participant. Atlas’ matching contributions are discretionary. Atlas’ costs incurred related to the matching portion of the ESPP were $5,000 and $21,000 for the three months ended September 30, 2020 and 2019, respectively, and $21,000 and $107,000 for the nine months ended September 30, 2020 and 2019, respectively. The matching portion of this plan was suspended during the third quarter of 2020. |
Share Capital and Mezzanine Equ
Share Capital and Mezzanine Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Share Capital and Mezzanine Equity | Share Capital and Mezzanine Equity Share Capital Share Capital Activity September 30, 2020 December 31, 2019 Shares Authorized Shares Issued Shares Outstanding Amount Shares Issued Shares Outstanding Amount Ordinary voting common shares 266,666,667 12,240,198 11,984,693 $ 36 12,198,319 11,942,812 $ 36 Restricted voting common shares 33,333,334 — — — — — — Total common shares 300,000,001 12,240,198 11,984,693 $ 36 12,198,319 11,942,812 $ 36 There were 3,301 and 11,682 non-vested RSUs as of September 30, 2020 and December 31, 2019, respectively. These RSUs are participative and are included in the computations of earnings per common share and book value per common share for these periods. During the nine months ended September 30, 2020, the Company issued 201,881 ordinary voting common shares of which 193,500 ordinary voting common shares were issued under the near term incentive program while 8,381 ordinary voting common shares were issued as a result of the vesting of RSUs. Also, during the first quarter of 2020 140,000 ordinary voting restricted common shares were cancelled due to not meeting performance targets, and 20,000 ordinary voting restricted common shares were canceled due to the departure of a former officer. During the year ended December 31, 2019, the Company issued 5,842 ordinary voting common shares as a result of the vesting of RSUs. Warrants The Schedule 13G/A filed by American Financial Group, Inc. a parent holding company, on January 31, 2020 states that as of December 31, 2019, and as updated on February 2, 2021 for December 31, 2020, it has sole power to vote and sole power to dispose of 2,387,368 ordinary voting common shares. These shares are represented by warrants to purchase 2,387,368 ordinary voting common shares until June 10, 2024, under a Warrant Agreement dated June 10, 2019 (the “Warrant Agreement”), at an initial exercise price of $0.69 per share, with both the number of ordinary voting common shares subject to the Warrant Agreement and the exercise price subject to adjustment as set forth in the Warrant Agreement. Mezzanine Equity |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs The below table represents activity of the ASI Pool Companies for the nine months ended September 30, 2020 and 2019. The activity for Global Liberty has not been included as a result of being classified as a discontinued operation. The ASI Pool Companies were deconsolidated as of October 1, 2019. Components of Deferred Policy Acquisition Costs ($ in ‘000s) Nine months ended September 30, 2020 2019 Balance, beginning of period $ — $ 5,918 Acquisition costs deferred — 9,497 Amortization charged to income — (11,405) Balance, end of period $ — $ 4,010 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company adopted ASC 842 (Leases) as of January 1, 2019, using the transition method wherein entities were allowed to initially apply the new lease standard at adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Adoption of ASC 842 resulted in an increase of operating lease right-of-use asset totaling approximately $2.5 million, an operating lease liability of approximately $3.1 million and a decrease of net deferred rent liabilities of approximately $600,000 on the condensed consolidated statements of financial position as of January 1, 2019. We currently lease real estate space, automobiles, and certain equipment under non-cancelable operating lease agreements. Leases with an initial term of 12 months or less, which are immaterial to the Company, are not recorded in the condensed consolidated statement of financial position. The Company has elected the practical expedient to account for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized. The Company also elected the package of practical expedients permitted within the new standard, which among other things, allows the Company to carry forward historical lease classification. Variable lease payment amounts that cannot be determined at the commencement of the lease, such as increases to lease payments based on changes in index rates or usage, are not recorded in the condensed consolidated statement of financial position. Certain agreements include an option to extend or renew the lease term at our option. The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercising those options. Lease payments are discounted using the implicit discount rate in the lease. If the implicit discount rate for the lease cannot be readily determined, the Company uses an estimate of its incremental borrowing rate. The Company did not have any contracts accounted for as finance leases as of September 30, 2020 or 2019. Lease Expense ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Operating leases $ 190 $ 242 $ 570 $ 718 Variable lease cost 88 90 268 256 Total $ 278 $ 332 $ 838 $ 974 Other Operating Lease Information ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows $ 278 $ 333 $ 838 $ 976 Right-of-use assets obtained in exchange for new lease liabilities — — — — Total $ 278 $ 333 $ 838 $ 976 Weighted-average remaining lease term 1.4 years Weighted-average discount rate 3.5 % The following table presents the undiscounted contractual maturities of the Company’s operating lease liability: Contractual Operating Lease Liabilities ($ in ‘000s) As of September 30, 2020 Remainder of 2020 $ 235 2021 898 2022 179 2023 23 Total lease payments $ 1,335 Impact of discounting (14) Operating lease liability $ 1,321 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsDuring the periods presented, a portion of Global Liberty’s investment portfolio, which is included in “Assets held for sale” on the Condensed Consolidated Statements of Financial Position, included investment vehicles that are considered related-party transactions. As of September 30, 2020 and December 31, 2019, these related-party transactions make up less than 14.5% and 1.0%, respectively, of the Company’s investment portfolio. In these transactions, one or more of the Company’s former directors or entities affiliated with such directors invest in and/or manage these vehicles. These related-party transactions are consistent with the Company’s investment guidelines and have been reviewed and approved by the Investment Committee of the Company’s Board of Directors. The Company believes that these transactions leverage investment resources that would otherwise not be available to the Company. |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable On April 26, 2017, Atlas issued $25 million of five The senior unsecured notes were issued under an indenture and supplemental indenture that contain covenants that, among other things, limit: (i) the ability of Atlas to merge or consolidate, or lease, sell, assign or transfer all or substantially all of its assets; (ii) the ability of Atlas to sell or otherwise dispose of the equity securities of certain of its subsidiaries; (iii) the ability of certain of Atlas’ subsidiaries to issue equity securities; (iv) the ability of Atlas to permit certain of its subsidiaries to merge or consolidate, or lease, sell, assign or transfer all or substantially all of their respective assets; and (v) the ability of Atlas and its subsidiaries to incur debt secured by equity securities of certain of its subsidiaries. On November 10, 2016, American Insurance Acquisition, Inc. (“AIAI”) entered into a ten On May 1, 2020, AIAI entered into a Paycheck Protection Program Promissory Note (the "PPP Note") with respect to a loan of $4,600,500 (the "PPP Loan") from Fifth Third Bank, National Association. The PPP Loan was obtained pursuant to the Paycheck Protection Program (the "PPP") of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") administered by the U.S. Small Business Administration ("SBA"). The PPP Loan matures on May 1, 2022 and bears interest at a rate of 1.0% per annum. The PPP Loan is payable in 18 equal monthly payments of $257,611.48 which was to commence December 1, 2020. The PPP Loan may be prepaid at any time prior to maturity with no prepayment penalties. AIAI has applied for loan forgiveness pursuant to the terms of the PPP as certain of the criteria have been met and is awaiting the results of the forgiveness decision, and as a result, monthly payments will be deferred until final resolution of the forgiveness application process. Interest expense on notes payable was $571,000 and $470,000 for the three months ended September 30, 2020 and 2019, respectively, and $1.7 million and $1.4 million for the nine months ended September 30, 2020 and 2019, respectively. Notes Payable Outstanding ($ in ‘000s) September 30, 2020 December 31, 2019 6.625% Senior Unsecured Notes due April 26, 2022 $ 25,000 $ 25,000 1.0% PPP Loan due May 1, 2022 4,601 — 5.0% Mortgage due November 10, 2026 7,056 7,621 Total outstanding borrowings 36,657 32,621 Unamortized issuance costs (352) (521) Total notes payable $ 36,305 $ 32,100 |
Deconsolidation and Discontinue
Deconsolidation and Discontinued Operations | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Deconsolidation and Discontinued Operations | Deconsolidation and Discontinued Operations Deconsolidation Effective October 1, 2019, Atlas no longer had statutory responsibility or authority over the financial activities of the ASI Pool Companies while still maintaining their indirect ownership of the ASI Pool Companies. This resulted in the ASI Pool Companies being classified as variable interest entities for which the Company is no longer the primary beneficiary, and they were deconsolidated during the fourth quarter of 2019. The financial results of the ASI Pool Companies are included in the condensed consolidated statements of operations through the October 1, 2019 disposal date. There was not re-measurement of any retained interest since no future value was assigned to the deconsolidated entities as a result of the rehabilitation. Management will continue supporting the administrative activities of the ASI Pool Companies as required by the Office of the Special Deputy Receiver of the Illinois Department of Insurance (“OSD”); however, the Company will have no control over the financial activities of these entities. As part of the deconsolidation, notes receivable from the ASI Pool Companies with an outstanding principal balance of $15.5 million are now presented on the condensed consolidated statements of financial position. On May 1, 2015, AIAI entered into subordinated surplus debentures (“Surplus Notes”) with the ASI Pool Companies that had a maturity date of April 30, 2020 carrying a variable interest equal to the corporate base rate as reported by the largest bank (measured in assets) with its head office located in Chicago, Illinois, in effect on the first business day of each month for the term of the Surplus Notes plus two percent per annum on the unpaid principal balance with a maximum variable interest rate for any month not to exceed the initial rate for the Surplus Notes by more than ten percent per annum. These Surplus Notes are subject to various terms and conditions as set forth by the Illinois Department of Insurance and the Missouri Department of Insurance and require prior written approvals for the payment of interest and/or a reduction in principal (See Note 19, Subsequent Events and Part I, Item 2, 2020 Developments). These Surplus Notes could be used at some point to offset future amounts payable to the ASI Pool Companies. Discontinued Operations During the fourth quarter of 2019, the Company began actively pursuing the potential sale of Global Liberty, and as a result, Global Liberty has been classified as a discontinued operation and the results of Global Liberty’s operations are reported separately for all periods presented. Summary financial information for Global Liberty included in income (loss) from discontinued operations, net of tax in the condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019 is presented below: Income (Loss) from Discontinued Operations ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net premiums earned $ 3,208 $ 6,054 $ 11,048 $ 21,633 Net investment (loss) income (27) 99 (44) 396 Net realized losses — 28 (1,565) (46) Total revenue 3,181 6,181 9,439 21,983 Net claims incurred 1,071 3,742 3,424 15,700 Acquisition costs 389 350 2,818 3,222 Other underwriting expenses 1,682 1,342 3,840 3,152 Interest (income) — — — (68) Total expenses 3,142 5,434 10,082 22,006 Income (loss) from operations before income taxes 39 747 (643) (23) Income tax benefit — — (522) — Net income (loss) $ 39 $ 747 $ (121) $ (23) Statements of Comprehensive Income ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net income (loss) $ 39 $ 747 $ (121) $ (23) Other comprehensive income: Changes in net unrealized investments gains 54 (60) 299 540 Reclassification to net income (loss) (3) 167 (96) 450 Other comprehensive income 51 107 203 990 Total comprehensive income $ 90 $ 854 $ 82 $ 967 The assets and liabilities of Global Liberty are presented as discontinued operations in the condensed consolidated statements of financial position at September 30, 2020 and December 31, 2019 and are detailed as follows: ($ in ‘000s) September 30, 2020 December 31, 2019 Assets Investments Fixed income securities, available for sale, at fair value (amortized cost $7,516 and $14,016) $ 7,942 $ 14,239 Short-term investments, at cost — 491 Other investments 1,306 1,315 Total investments 9,248 16,045 Cash and cash equivalents 1,178 7,712 Accrued investment income 52 78 Reinsurance recoverables on amounts paid 1,115 2,227 Reinsurance recoverables on amounts unpaid 14,358 18,339 Prepaid reinsurance premiums 15,574 3,765 Deferred policy acquisition costs 682 534 Property and equipment, net — 1,741 Other assets 4,405 861 Total assets $ 46,612 $ 51,302 Liabilities Claims liabilities $ 27,338 $ 46,771 Unearned premium reserves 21,652 12,423 Due to reinsurers 32 1,019 Other liabilities and accrued expenses 3,740 2,554 Total liabilities $ 52,762 $ 62,767 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events As previously disclosed, the Company was unable to timely file this Quarterly Report on Form 10-Q due to delays in the 2019 year end audit process, which delayed our filing of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and Quarterly Reports on Form 10-Q for the periods ended March 31, 2020 and June 30, 2020 and, as a result, our filing of this quarterly report. As a result of this delay, the Company received delinquency notices from Nasdaq related to these filings as well as other matters. On August 31, 2020, the Company filed a Current Report on Form 8-K advising that Nasdaq would suspend trading in the Company’s securities effective at the open of business on September 2, 2020. Nasdaq filed a Form 25 Notification of Delisting with the SEC on October 27, 2020 notifying the SEC of Nasdaq’s determination to remove the Company’s common shares from listing on Nasdaq under Section 12(b) of the Exchange Act. The formal delisting of the Company’s common shares from Nasdaq became effective on November 6, 2020, ten days after the Form 25 was filed. In connection with the suspension of trading on The Nasdaq Capital Market, the Company’s common shares began to trade on the OTC Markets system effective with the open of the markets on September 2, 2020. Subsequent to the Gateway transaction (see Part I, Item 2, 2020 Developments), Buckle proposed terms to acquire the stock, charter and state licenses of American Country and American Service. In connection therewith, a required court order was entered on August 11, 2020 to place American Country and American Service in liquidation, with the Director acting as the statutory liquidator. AIAI and the Director as statutory liquidator of American County and American Service signed a stock purchase agreement on November 2, 2020. The closing of this pending transaction is subject to regulatory approval and other conditions. On February 7, 2021, AIAI entered into a Paycheck Protection Program promissory note with respect to a loan of $2,000,000 (the “Second PPP Loan”) from Fifth Third Bank, National Association (“Fifth Third”). The Second PPP Loan was obtained pursuant to the Small Business Administration’s Paycheck Protection Program Second Draw Loans under the Small Business Act (“SB Act”), and is subject to the terms and conditions of the SB Act, the Coronavirus Aid, Relief, and Economic Security Act and related legislation and regulations (the “PPP Rules”). The Company was eligible for this Second PPP loan because our equity securities are not a National Markets System stock traded on a national securities exchange as defined by Section 6 of the Securities Exchange Act of 1934. The Second PPP Loan matures on February 7, 2026 and bears interest at a rate of 1.00% per annum. The Company will not be obligated to make any payments of principal or interest if the Company submits a loan forgiveness application to Fifth Third within 10 months after the end of the Company’s covered loan forgiveness period (as defined and interpreted by the PPP Rules) and such loan forgiveness is allowed. If the Company does not submit a loan forgiveness application within 10 months after the end of the Company’s loan forgiveness covered period (and such forgiveness is not allowed), the Company must begin paying principal and interest after that period (or after notice that such forgiveness is not allowed). The Company’s Current Reports on Form 8-K and press releases since September 30, 2020 provide more detailed disclosures regarding the above events. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation These statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Atlas and the entities it controls. Equity investments in entities that we do not consolidate, including corporate entities in which we have significant influence and partnership and partnership-like entities in which we have more than minor influence over operating and financial policies, are accounted for under the equity method unless we have elected the fair value option. All significant intercompany accounts and transactions have been eliminated. The results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results expected for the full calendar year. |
Estimates and Assumptions | Estimates and Assumptions |
Revenue Recognition | Revenue RecognitionRevenues from contracts with customers include both commission and fee income. The recognition and measurement of revenue is based on the assessments of individual contract terms. As an MGA, the Company has contracts with various insurance carriers which determines the Company’s commission income revenue. Each contract specifies what our performance obligations are as an MGA and what determines our commission income revenue, generally gross written premiums, net of cancellations and refunds. Under these contracts there are a number of performance obligations; however, it is the bundle of these services and not a single obligation that results in the performance of the MGA under the contracts. The Company considers these performance obligations as a non-bifurcated bundle of services where the performance obligations are satisfied simultaneous to the point in time where the Company issues a policy, or cancels a policy to an insured. The commission rate stated in the individual contract is the standalone selling price of these non-bifurcated services which is allocated to the service bundle and not to any individual obligation under the various contracts. |
Operating Segments | Operating Segments |
New Accounting Standards | New Accounting StandardsThere have been no recent pronouncements or changes in pronouncements during the nine months ended September 30, 2020, as compared to those described in our Annual Report on Form 10-K for the twelve months ended December 31, 2019, that are of significance or potential significance to Atlas. Pertinent Accounting Standard Updates (“ASUs”) are issued from time to time by the Financial Accounting Standards Board (“FASB”) and are adopted by the Company as they become effective. All recently issued accounting pronouncements with effective dates prior to October 1, 2020 have been adopted by the Company. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible Assets by Major Asset Class ($ in ‘000s) Economic Useful Life Gross Carrying Amount Accumulated Amortization Net As of September 30, 2020 Trade name and trademark 15 years $ 1,800 $ 673 $ 1,127 Customer relationship 10 years 2,700 1,495 1,205 $ 4,500 $ 2,168 $ 2,332 As of December 31, 2019 Trade name and trademark 15 years $ 1,800 $ 581 $ 1,219 Customer relationship 10 years 2,700 1,294 1,406 $ 4,500 $ 1,875 $ 2,625 |
Loss From Continuing Operatio_2
Loss From Continuing Operations per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Computations of Basic and Diluted Loss per Common Share from Continuing Operations ($ in ‘000s, except share and per share amounts) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Basic Loss from continuing operations before income taxes $ (3,712) $ (2,963) $ (11,700) $ (6,145) Income tax (benefit) expense (148) 26 (271) 26 Net loss attributable to common shareholders from continuing operations $ (3,564) $ (2,989) $ (11,429) $ (6,171) Basic weighted average common shares outstanding 11,971,490 11,954,494 11,946,051 11,954,494 Loss per common share basic from continuing operations $ (0.30) $ (0.25) $ (0.96) $ (0.52) Diluted Basic weighted average common shares outstanding 11,971,490 11,954,494 11,946,051 11,954,494 Dilutive potential ordinary shares: Dilutive stock options outstanding — — — — Diluted weighted average common shares outstanding 11,971,490 11,954,494 11,946,051 11,954,494 Loss per common share diluted from continuing operations $ (0.30) $ (0.25) $ (0.96) $ (0.52) |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments [Abstract] | |
Summary of Components of Net Investment Income | Components of Net Investment Income ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Total investment income: Interest income $ — $ 525 $ — $ 1,859 Income from other investments — 45 — 794 Investment expenses — (241) — (769) Net investment income $ — $ 329 $ — $ 1,884 |
Schedule of Realized Gain (Loss) | Aggregate Proceeds and Gross Realized Investment Gains and Losses ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Fixed income securities: Proceeds from sales and calls $ — $ 10,177 $ — $ 42,102 Gross realized investment gains — 120 — 438 Gross realized investment losses — (32) — (201) Equities: Proceeds from sales $ — $ — $ — $ 5,997 Gross realized investment gains — — — 443 Gross realized investment losses — — — (96) Other investments: Proceeds from sales $ — $ 1,700 $ — $ 3,997 Gross realized investment gains — 297 — 576 Total: Proceeds from sales and calls $ — $ 11,877 $ — $ 52,096 Gross realized investment gains — 417 — 1,457 Gross realized investment losses — (32) — (297) |
Summary of Components of Net Investment Realized Gains | Components of Net Realized Gains ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Fixed income securities $ — $ 88 $ — $ 237 Equities — — — 347 Other investments — 296 — 554 Net realized gains $ — $ 384 $ — $ 1,138 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of U.S. Statutory Marginal Income Tax Rate to the Effective Tax Rate - Continuing Operations ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Amount % Amount % Amount % Amount % Provision for taxes at U.S. statutory marginal income tax rate $ (779) 20.5 % $ (623) 21.0 $ (2,456) 21.0 % $ (1,291) 21.0 Provision for deferred tax assets deemed unrealizable (valuation allowance) (12) 0.3 626 (21.1) 1,571 (13.4) 1,242 (20.2) Nondeductible expenses 1 — 3 (0.1) 2 — 26 (0.4) Tax-exempt income — — (1) — — — (3) — State tax (net of federal benefit) — — 21 (0.7) — — 21 (0.3) Stock compensation 642 (16.9) — — 654 (5.6) 31 (0.5) Tax rate differential — — — — (42) 0.3 — — Provision for income taxes for continuing operations $ (148) 3.9 % $ 26 (0.9) % $ (271) 2.3 % $ 26 (0.4) % Reconciliation of U.S. Statutory Marginal Income Tax Rate to the Effective Tax Rate - Discontinued Operations ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Amount % Amount % Amount % Amount % Provision for taxes at U.S. statutory marginal income tax rate $ 8 21.0 % $ 157 21.0 % $ (134) 21.0 % $ (5) 21.0 % Provision for deferred tax assets deemed unrealizable (valuation allowance) (9) (21.8) (156) (21.0) (189) 29.3 4 (16.1) Nondeductible expenses 1 0.8 — — 1 (0.2) 2 (9.4) Tax-exempt income — — (1) — — — (1) 4.5 Tax rate differential — — — — (200) 31.0 — — Provision for income taxes for discontinued operations $ — — % $ — — % $ (522) 81.1 % $ — — % |
Schedule of Components of Income Tax Expense (Benefit) | Components of Income Tax (Benefit) Expense - Continuing Operations ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Current tax (benefit) expense $ (148) $ 26 $ (271) $ 26 Components of Income Tax Benefit - Discontinued Operations ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Current tax benefit $ — $ — $ (522) $ — |
Schedule of Deferred Tax Assets and Liabilities | Components of Deferred Income Tax Assets and Liabilities ($ in ‘000s) September 30, 2020 December 31, 2019 Gross deferred tax assets: Losses carried forward $ 13,042 $ 10,264 Claims liabilities and unearned premium reserves 354 554 Investment in affiliates 23,707 24,450 Bad debts 167 168 Stock compensation 276 873 Other 160 81 Valuation allowance (33,119) (32,522) Total gross deferred tax assets 4,587 3,868 Gross deferred tax liabilities: Deferred policy acquisition costs 143 112 Investments 162 116 Fixed assets 1,477 2,099 Intangible assets 490 551 Other 2,315 990 Total gross deferred tax liabilities 4,587 3,868 Net deferred tax assets $ — $ — |
Summary of Operating Loss Carryforwards | Net Operating Loss Carryforward as of September 30, 2020 by Expiry ($ in ‘000s) Year of Occurrence Year of Expiration Amount 2011 2031 $ 1 2012 2032 70 2015 2035 1 2017 2037 13,649 2018 2038 8,903 2018 Indefinite 8,245 2019 2039 10,863 2019 Indefinite 6,306 2020 2040 8,460 2020 Indefinite 5,605 Total $ 62,103 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and Equipment Held 1 ($ in ‘000s) September 30, 2020 December 31, 2019 Buildings $ 7,425 $ 7,425 Land 1,840 1,840 Building improvements 9,031 9,023 Leasehold improvements 193 193 Internal use software 12,795 12,610 Computer equipment 1,921 1,925 Furniture and other office equipment 1,121 1,150 Total $ 34,326 $ 34,166 Accumulated depreciation and amortization (14,796) (12,373) Total property and equipment, net $ 19,530 $ 21,793 1 Excluding assets held for sale. |
Reinsurance Ceded (Tables)
Reinsurance Ceded (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Underwriting Policy and Reinsurance Ceded [Abstract] | |
Schedule of Effects of Reinsurance | Premiums Written, Premiums Earned and Amounts Related to Reinsurance ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Direct premiums written $ — $ 26,488 $ — $ 133,827 Assumed premiums written — 4,301 — 26,857 Ceded premiums written — (10,672) — (72,911) Net premiums written $ — $ 20,117 $ — $ 87,773 Direct premiums earned $ — $ 46,831 $ — $ 149,609 Assumed premiums earned — 9,595 — 26,954 Ceded premiums earned — (21,898) — (66,322) Net premiums earned $ — $ 34,528 $ — $ 110,241 Ceded claims and claims adjustment expenses $ — $ 14,013 $ — $ 31,551 Ceding commissions $ — $ 3,919 $ — $ 16,381 |
Claims Liabilities (Tables)
Claims Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The below table represents activity of the ASI Pool Companies for the three and nine months ended September 30, 2020 and 2019. The activity for Global Liberty has not been included as a result of being classified as a discontinued operation. The ASI Pool Companies were deconsolidated as of October 1, 2019. Changes in the Provision for Unpaid Claims and Claims Adjustment Expenses, Net of Reinsurance Recoverables ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Unpaid claims and claims adjustment expenses, beginning of period $ — $ 206,996 $ — $ 226,487 Less: reinsurance recoverable — 55,533 — 55,265 Net unpaid claims and claims adjustment expenses, beginning of period — 151,463 — 171,222 Incurred related to: Current year — 23,509 — 78,613 Prior years — 1,590 — 2,154 — 25,099 — 80,767 Paid related to: Current year — 9,756 — 22,182 Prior years — 26,969 — 89,970 — 36,725 — 112,152 Net unpaid claims and claims adjustment expenses, end of period — 139,837 — 139,837 Add: reinsurance recoverable — 65,166 — 65,166 Unpaid claims and claims adjustment expenses, end of period $ — $ 205,003 $ — $ 205,003 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | Stock Option Activity (prices in Canadian dollars designated with “C$” and U.S. dollars designated with “US$” Nine months ended September 30, 2020 2019 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price C$ Denominated: Outstanding, beginning of period 27,195 C$6.00 27,195 C$6.00 Granted — — — — Exercised — — — — Canceled (27,195) C$6.00 — — Outstanding, end of period — — 27,195 C$6.00 US$ Denominated: Outstanding, beginning of period 375,000 US$17.01 375,000 US$17.01 Granted — — — — Exercised — — — — Canceled (193,500) US$18.73 — — Outstanding, end of period 181,500 US$13.51 375,000 US$17.01 |
Schedule of Restricted Stock and Restricted Stock Units Activity | Restricted Stock Grants for Ordinary Voting Common Shares and Restricted Share Unit Activity Nine months ended September 30, 2020 2019 Number of Shares Weighted Average Fair Value at Grant Date Number of Shares Weighted Average Fair Value at Grant Date Non-vested, beginning of period $ 171,682 $ 17.46 $ 207,156 $ 16.50 Granted — — — — Vested (8,381) 10.22 (28,066) 11.79 Canceled (160,000) 9.62 (7,408) 12.20 Non-vested, end of period $ 3,301 $ 10.22 $ 171,682 $ 17.46 |
Share Capital and Mezzanine E_2
Share Capital and Mezzanine Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Stock by Class | Share Capital Activity September 30, 2020 December 31, 2019 Shares Authorized Shares Issued Shares Outstanding Amount Shares Issued Shares Outstanding Amount Ordinary voting common shares 266,666,667 12,240,198 11,984,693 $ 36 12,198,319 11,942,812 $ 36 Restricted voting common shares 33,333,334 — — — — — — Total common shares 300,000,001 12,240,198 11,984,693 $ 36 12,198,319 11,942,812 $ 36 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs Roll Forward | The below table represents activity of the ASI Pool Companies for the nine months ended September 30, 2020 and 2019. The activity for Global Liberty has not been included as a result of being classified as a discontinued operation. The ASI Pool Companies were deconsolidated as of October 1, 2019. Components of Deferred Policy Acquisition Costs ($ in ‘000s) Nine months ended September 30, 2020 2019 Balance, beginning of period $ — $ 5,918 Acquisition costs deferred — 9,497 Amortization charged to income — (11,405) Balance, end of period $ — $ 4,010 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost | Lease Expense ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Operating leases $ 190 $ 242 $ 570 $ 718 Variable lease cost 88 90 268 256 Total $ 278 $ 332 $ 838 $ 974 Other Operating Lease Information ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows $ 278 $ 333 $ 838 $ 976 Right-of-use assets obtained in exchange for new lease liabilities — — — — Total $ 278 $ 333 $ 838 $ 976 Weighted-average remaining lease term 1.4 years Weighted-average discount rate 3.5 % |
Lessee, Operating Lease, Liability, Maturity | The following table presents the undiscounted contractual maturities of the Company’s operating lease liability: Contractual Operating Lease Liabilities ($ in ‘000s) As of September 30, 2020 Remainder of 2020 $ 235 2021 898 2022 179 2023 23 Total lease payments $ 1,335 Impact of discounting (14) Operating lease liability $ 1,321 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | Notes Payable Outstanding ($ in ‘000s) September 30, 2020 December 31, 2019 6.625% Senior Unsecured Notes due April 26, 2022 $ 25,000 $ 25,000 1.0% PPP Loan due May 1, 2022 4,601 — 5.0% Mortgage due November 10, 2026 7,056 7,621 Total outstanding borrowings 36,657 32,621 Unamortized issuance costs (352) (521) Total notes payable $ 36,305 $ 32,100 |
Deconsolidation and Discontin_2
Deconsolidation and Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Summary financial information for Global Liberty included in income (loss) from discontinued operations, net of tax in the condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019 is presented below: Income (Loss) from Discontinued Operations ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net premiums earned $ 3,208 $ 6,054 $ 11,048 $ 21,633 Net investment (loss) income (27) 99 (44) 396 Net realized losses — 28 (1,565) (46) Total revenue 3,181 6,181 9,439 21,983 Net claims incurred 1,071 3,742 3,424 15,700 Acquisition costs 389 350 2,818 3,222 Other underwriting expenses 1,682 1,342 3,840 3,152 Interest (income) — — — (68) Total expenses 3,142 5,434 10,082 22,006 Income (loss) from operations before income taxes 39 747 (643) (23) Income tax benefit — — (522) — Net income (loss) $ 39 $ 747 $ (121) $ (23) Statements of Comprehensive Income ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net income (loss) $ 39 $ 747 $ (121) $ (23) Other comprehensive income: Changes in net unrealized investments gains 54 (60) 299 540 Reclassification to net income (loss) (3) 167 (96) 450 Other comprehensive income 51 107 203 990 Total comprehensive income $ 90 $ 854 $ 82 $ 967 The assets and liabilities of Global Liberty are presented as discontinued operations in the condensed consolidated statements of financial position at September 30, 2020 and December 31, 2019 and are detailed as follows: ($ in ‘000s) September 30, 2020 December 31, 2019 Assets Investments Fixed income securities, available for sale, at fair value (amortized cost $7,516 and $14,016) $ 7,942 $ 14,239 Short-term investments, at cost — 491 Other investments 1,306 1,315 Total investments 9,248 16,045 Cash and cash equivalents 1,178 7,712 Accrued investment income 52 78 Reinsurance recoverables on amounts paid 1,115 2,227 Reinsurance recoverables on amounts unpaid 14,358 18,339 Prepaid reinsurance premiums 15,574 3,765 Deferred policy acquisition costs 682 534 Property and equipment, net — 1,741 Other assets 4,405 861 Total assets $ 46,612 $ 51,302 Liabilities Claims liabilities $ 27,338 $ 46,771 Unearned premium reserves 21,652 12,423 Due to reinsurers 32 1,019 Other liabilities and accrued expenses 3,740 2,554 Total liabilities $ 52,762 $ 62,767 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)state | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)statesegment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Number of states licensed to write property and casualty insurance (state) | state | 49 | 49 | |||
Number of states, core products actively distributed (state) | state | 42 | 42 | |||
Commission income | $ | $ 1,674 | $ 860 | $ 4,677 | $ 4,666 | |
Commissions receivable | $ | $ 3,100 | $ 3,100 | $ 1,400 | ||
Number of business segments (segment) | segment | 1 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | $ 4,500 | $ 4,500 |
Intangible assets, accumulated amortization | 2,168 | 1,875 |
Finite-lived intangible assets, net | $ 2,332 | $ 2,625 |
Trade name and trademark | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible asset, economic useful life | 15 years | 15 years |
Finite-lived intangible assets, gross carrying amount | $ 1,800 | $ 1,800 |
Intangible assets, accumulated amortization | 673 | 581 |
Finite-lived intangible assets, net | $ 1,127 | $ 1,219 |
Customer relationship | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible asset, economic useful life | 10 years | 10 years |
Finite-lived intangible assets, gross carrying amount | $ 2,700 | $ 2,700 |
Intangible assets, accumulated amortization | 1,495 | 1,294 |
Finite-lived intangible assets, net | $ 1,205 | $ 1,406 |
Loss From Continuing Operatio_3
Loss From Continuing Operations per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic | ||||
Loss from continuing operations before income taxes | $ (3,712) | $ (2,963) | $ (11,700) | $ (6,145) |
Income tax (benefit) expense | (148) | 26 | (271) | 26 |
Net loss attributable to common shareholders from continuing operations | $ (3,564) | $ (2,989) | $ (11,429) | $ (6,171) |
Basic weighted average common shares outstanding (in shares) | 11,971,490 | 11,954,494 | 11,946,051 | 11,954,494 |
Continuing operations (in dollars per share) | $ (0.30) | $ (0.25) | $ (0.96) | $ (0.52) |
Diluted | ||||
Basic weighted average common shares outstanding (in shares) | 11,971,490 | 11,954,494 | 11,946,051 | 11,954,494 |
Dilutive stock options outstanding (in shares) | 0 | 0 | 0 | 0 |
Diluted weighted average common shares outstanding (includes RSUs) (in shares) | 11,971,490 | 11,954,494 | 11,946,051 | 11,954,494 |
Continuing operations (in dollars per share) | $ (0.30) | $ (0.25) | $ (0.96) | $ (0.52) |
Loss From Continuing Operatio_4
Loss From Continuing Operations per Share (Details) - $ / shares | Sep. 30, 2020 | Jun. 10, 2019 |
Class of Warrant or Right [Line Items] | ||
Exercise price of warrants or rights (in dollars per share) | $ 0.69 | $ 0.69 |
Ordinary Voting Common Shares Warrants to Purchase | ||
Class of Warrant or Right [Line Items] | ||
Class of warrant or right, outstanding (in shares) | 2,387,368 |
Investments - Schedule of Inves
Investments - Schedule of Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investments [Abstract] | ||||
Interest income | $ 0 | $ 525 | $ 0 | $ 1,859 |
Income from other investments | 0 | 45 | 0 | 794 |
Investment expenses | 0 | (241) | 0 | (769) |
Net investment income | $ 0 | $ 329 | $ 0 | $ 1,884 |
Investments - Schedule of Gross
Investments - Schedule of Gross Realized Gains (Losses) on Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales and calls | $ 0 | $ 11,877 | $ 0 | $ 52,096 |
Gross realized investment gains | 0 | 417 | 0 | 1,457 |
Gross realized investment losses | 0 | (32) | 0 | (297) |
Fixed income securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales and calls | 0 | 10,177 | 0 | 42,102 |
Gross realized investment gains | 0 | 120 | 0 | 438 |
Gross realized investment losses | 0 | (32) | 0 | (201) |
Equities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales and calls | 0 | 0 | 0 | 5,997 |
Gross realized investment gains | 0 | 0 | 0 | 443 |
Gross realized investment losses | 0 | 0 | 0 | (96) |
Other Investments | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales and calls | 0 | 1,700 | 0 | 3,997 |
Gross realized investment gains | $ 0 | $ 297 | $ 0 | $ 576 |
Investments - Schedule of Inv_2
Investments - Schedule of Investment Gains (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Gain (Loss) on Securities [Line Items] | ||||
Net realized gains (losses) | $ 0 | $ 384 | $ 0 | $ 1,138 |
Other Investments | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized gains (losses) | 0 | 296 | 0 | 554 |
Fixed income securities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized gains (losses) | 0 | 88 | 0 | 237 |
Equities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized gains (losses) | $ 0 | $ 0 | $ 0 | $ 347 |
Income Taxes - Rate Reconciliat
Income Taxes - Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Provision for taxes at U.S. statutory marginal income tax rate | $ (779) | $ (623) | $ (2,456) | $ (1,291) |
Provision for deferred tax assets deemed unrealizable (valuation allowance) | (12) | 626 | 1,571 | 1,242 |
Nondeductible expenses | 1 | 3 | 2 | 26 |
Tax-exempt income | 0 | (1) | 0 | (3) |
State tax (net of federal benefit) | 0 | 21 | 0 | 21 |
Stock compensation | 642 | 0 | 654 | 31 |
Tax rate differential | 0 | 0 | (42) | 0 |
Income tax (benefit) expense | $ (148) | $ 26 | $ (271) | $ 26 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Provision for taxes at U.S. statutory marginal income tax rate, percent | 20.50% | 21.00% | 21.00% | 21.00% |
Provision for deferred tax assets deemed unrealizable (valuation allowance), percent | 0.30% | (21.10%) | (13.40%) | (20.20%) |
Nondeductible expenses, percent | 0.00% | (0.10%) | 0.00% | (0.40%) |
Tax-exempt income, percent | 0.00% | 0.00% | 0.00% | 0.00% |
State tax (net of federal benefit), percent | 0.00% | (0.70%) | 0.00% | (0.30%) |
Stock compensation, percent | (16.90%) | 0.00% | (5.60%) | (0.50%) |
Other, percent | 0.00% | 0.00% | 0.30% | 0.00% |
Effective income tax rate | 3.90% | (0.90%) | 2.30% | (0.40%) |
Discontinued Operations | ||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Provision for taxes at U.S. statutory marginal income tax rate | $ 8 | $ 157 | $ (134) | $ (5) |
Provision for deferred tax assets deemed unrealizable (valuation allowance) | (9) | (156) | (189) | 4 |
Nondeductible expenses | 1 | 0 | 1 | 2 |
Tax-exempt income | 0 | (1) | 0 | (1) |
Tax rate differential | 0 | 0 | (200) | 0 |
Income tax (benefit) expense | $ 0 | $ 0 | $ (522) | $ 0 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Provision for taxes at U.S. statutory marginal income tax rate, percent | 21.00% | 21.00% | 21.00% | 21.00% |
Provision for deferred tax assets deemed unrealizable (valuation allowance), percent | (21.80%) | (21.00%) | 29.30% | (16.10%) |
Nondeductible expenses, percent | 0.80% | 0.00% | (0.20%) | (9.40%) |
Tax-exempt income, percent | 0.00% | 0.00% | 0.00% | 4.50% |
Other, percent | 0.00% | 0.00% | 31.00% | 0.00% |
Effective income tax rate | 0.00% | 0.00% | 81.10% | 0.00% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||
Current tax (benefit) expense | $ (148) | $ 26 | $ (271) | $ 26 |
Discontinued Operations | ||||
Operating Loss Carryforwards [Line Items] | ||||
Current tax (benefit) expense | $ 0 | $ 0 | $ (522) | $ 0 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Gross deferred tax assets: | ||
Losses carried forward | $ 13,042 | $ 10,264 |
Claims liabilities and unearned premium reserves | 354 | 554 |
Investment in affiliates | 23,707 | 24,450 |
Bad debts | 167 | 168 |
Stock compensation | 276 | 873 |
Other | 160 | 81 |
Valuation allowance | (33,119) | (32,522) |
Total gross deferred tax assets | 4,587 | 3,868 |
Gross deferred tax liabilities: | ||
Deferred policy acquisition costs | 143 | 112 |
Investments | 162 | 116 |
Fixed assets | 1,477 | 2,099 |
Intangible assets | 490 | 551 |
Other | 2,315 | 990 |
Total gross deferred tax liabilities | 4,587 | 3,868 |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Schedule of Tax
Income Taxes - Schedule of Tax Carryforwards (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, subject to expiration | $ 62,103 |
Carryforward Expiring in 2031 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, subject to expiration | 1 |
Carryforward Expiring in 2032 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, subject to expiration | 70 |
Carryforward Expiring in 2035 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, subject to expiration | 1 |
Carryforward Expiring in 2037 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, subject to expiration | 13,649 |
Carryforward Expiring in 2038 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, subject to expiration | 8,903 |
Carryforward Expiring Indefinite Originated In 2018 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, subject to expiration | 8,245 |
Carryforward Expiring in 2039 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, subject to expiration | 10,863 |
Carryforward Expiring Indefinite Originated In 2019 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, subject to expiration | 6,306 |
Carryforward Expiring in 2040 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, subject to expiration | 8,460 |
Carryforward Expiring Indefinite Originated In 2020 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, subject to expiration | $ 5,605 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Text Block [Abstract] | ||
Valuation allowance | $ 33,119 | $ 32,522 |
Property and Equipment (Details
Property and Equipment (Details) ft² in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($)ft² | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)ft² | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | $ 34,326,000 | $ 34,326,000 | $ 34,166,000 | ||
Accumulated depreciation and amortization | (14,796,000) | (14,796,000) | (12,373,000) | ||
Total property and equipment, net | 19,530,000 | 19,530,000 | 21,793,000 | ||
Depreciation and amortization of property and equipment | 741,000 | $ 1,100,000 | 2,463,000 | $ 2,988,000 | |
Capitalized costs | 185,000 | 2,200,000 | |||
Amortization of capitalized costs | $ 308,000 | 578,000 | $ 1,100,000 | 1,500,000 | |
Occupied area of corporate headquarters building | ft² | 70 | 70 | |||
Rental income | $ 116,000 | 111,000 | $ 346,000 | 334,000 | |
Gain (loss) on disposition of fixed assets | 0 | 0 | 0 | (21,000) | |
Continuing Operations | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization of property and equipment | 3,900,000 | ||||
Global Liberty Insurance Company | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization of property and equipment | 0 | 49,000 | 0 | 250,000 | 250,000 |
Buildings | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | 7,425,000 | 7,425,000 | 7,425,000 | ||
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | 1,840,000 | 1,840,000 | 1,840,000 | ||
Building improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | 9,031,000 | 9,031,000 | 9,023,000 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | 193,000 | 193,000 | 193,000 | ||
Internal use software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | 12,795,000 | 12,795,000 | 12,610,000 | ||
Computer equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | 1,921,000 | 1,921,000 | 1,925,000 | ||
Furniture and other office equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | 1,121,000 | 1,121,000 | $ 1,150,000 | ||
Building and building improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization of property and equipment | $ 284,000 | $ 283,000 | $ 833,000 | $ 850,000 |
Reinsurance Ceded (Details)
Reinsurance Ceded (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Underwriting Policy and Reinsurance Ceded [Abstract] | ||||
Direct premiums written | $ 0 | $ 26,488 | $ 0 | $ 133,827 |
Assumed premiums written | 0 | 4,301 | 0 | 26,857 |
Ceded premiums written | 0 | (10,672) | 0 | (72,911) |
Net premiums written | 0 | 20,117 | 0 | 87,773 |
Direct premiums earned | 0 | 46,831 | 0 | 149,609 |
Assumed premiums earned | 0 | 9,595 | 0 | 26,954 |
Ceded premiums earned | 0 | (21,898) | 0 | (66,322) |
Net premiums earned | 0 | 34,528 | 0 | 110,241 |
Ceded claims and claims adjustment expenses | 0 | 14,013 | 0 | 31,551 |
Ceding commissions | $ 0 | $ 3,919 | $ 0 | $ 16,381 |
- Unpaid Claims (Details)
- Unpaid Claims (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||||||
Unpaid claims and claims adjustment expenses, beginning of period | $ 0 | $ 206,996 | $ 0 | $ 226,487 | ||||
Less: reinsurance recoverable, beginning of period | 0 | 55,533 | 0 | 55,265 | ||||
Net unpaid claims and claims adjustment expenses, beginning of period | 0 | 139,837 | 0 | 139,837 | $ 0 | $ 0 | $ 151,463 | $ 171,222 |
Incurred related to: | ||||||||
Current year | 0 | 23,509 | 0 | 78,613 | ||||
Prior years | 0 | 1,590 | 0 | 2,154 | ||||
Total incurred current and prior years | 0 | 25,099 | 0 | 80,767 | ||||
Paid related to: | ||||||||
Current year | 0 | 9,756 | 0 | 22,182 | ||||
Prior years | 0 | 26,969 | 0 | 89,970 | ||||
Total paid current and prior years | 0 | 36,725 | 0 | 112,152 | ||||
Net unpaid claims and claims adjustment expenses, end of period | 0 | 139,837 | 0 | 139,837 | ||||
Add: reinsurance recoverable, end of period | 0 | 65,166 | 0 | 65,166 | ||||
Unpaid claims and claims adjustment expenses, end of period | $ 0 | $ 205,003 | $ 0 | $ 205,003 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Outstanding Options and Restricted Shares (Details) | 9 Months Ended | |||
Sep. 30, 2020$ / sharesshares | Sep. 30, 2020$ / sharesshares | Sep. 30, 2019$ / sharesshares | Sep. 30, 2019$ / sharesshares | |
Prior to December 31, 2013 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Option, outstanding (in shares), beginning of period | shares | 27,195 | 27,195 | 27,195 | 27,195 |
Options, granted in period (in shares) | shares | 0 | 0 | 0 | 0 |
Options, exercised in period (in shares) | shares | 0 | 0 | 0 | 0 |
Options, canceled in period (in shares) | shares | 27,195 | 27,195 | 0 | 0 |
Option, outstanding (in shares), end of period | shares | 0 | 0 | 27,195 | 27,195 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Options, outstanding, weighted average exercise price beginning balance (in US or Canadian dollars per share) | $ / shares | $ 6 | $ 6 | ||
Options, granted in period, weighted average exercise price (in US or Canadian dollars per share) | $ / shares | 0 | 0 | ||
Options, exercises in period, weighted average exercise price (in US or Canadian dollars per share) | $ / shares | 0 | 0 | ||
Options, canceled in period, weighted average exercise price (in US or Canadian dollars per share) | $ / shares | 6 | 0 | ||
Options, outstanding, weighted average exercise price, ending balance (in US or Canadian dollars per share) | $ / shares | $ 0 | $ 6 | ||
After December 31, 2013 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Option, outstanding (in shares), beginning of period | shares | 375,000 | 375,000 | 375,000 | 375,000 |
Options, granted in period (in shares) | shares | 0 | 0 | 0 | 0 |
Options, exercised in period (in shares) | shares | 0 | 0 | 0 | 0 |
Options, canceled in period (in shares) | shares | 193,500 | 193,500 | 0 | 0 |
Option, outstanding (in shares), end of period | shares | 181,500 | 181,500 | 375,000 | 375,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Options, outstanding, weighted average exercise price beginning balance (in US or Canadian dollars per share) | $ / shares | $ 17.01 | $ 17.01 | ||
Options, granted in period, weighted average exercise price (in US or Canadian dollars per share) | $ / shares | 0 | 0 | ||
Options, exercises in period, weighted average exercise price (in US or Canadian dollars per share) | $ / shares | 0 | 0 | ||
Options, canceled in period, weighted average exercise price (in US or Canadian dollars per share) | $ / shares | 18.73 | 0 | ||
Options, outstanding, weighted average exercise price, ending balance (in US or Canadian dollars per share) | $ / shares | $ 13.51 | $ 17.01 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 12, 2015 | Mar. 31, 2018 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2018 | Apr. 04, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options, exercisable (in shares) | 0 | 0 | ||||||||
Grants, weighted average remaining life | 3 years 5 months 19 days | |||||||||
Options outstanding, intrinsic value | $ 0 | $ 0 | ||||||||
Option awards canceled during period (shares) | 140,000 | |||||||||
Share-based compensation expense | $ 82 | $ 188 | $ 277 | $ 685 | ||||||
Unearned share-based compensation expense, remaining amortization period | 3 months | |||||||||
Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares vested during period (shares) | 2,540 | |||||||||
Restricted share and restricted share units grants | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares canceled during period (shares) | 140,000 | 7,408 | ||||||||
Unearned share-based compensation expense | $ 15 | $ 15 | ||||||||
Officer | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Option awards canceled during period (shares) | 53,500 | |||||||||
Officer | Restricted share and restricted share units grants | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares canceled during period (shares) | 20,000 | |||||||||
December 31, 2018 | Director | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting rights, percentage | 33.30% | |||||||||
December 31, 2018 | Equity Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share price (in dollars per share) | $ 10.50 | |||||||||
December 31, 2018 | Equity Incentive Plan | Director | Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares granted during period (shares) | 17,524 | |||||||||
Deferred compensation arrangement with individual, fair value (in shares) | $ 40 | |||||||||
Share-based compensation arrangement by share-based payment award, aggregate grant date fair value | $ 179 | |||||||||
March 12, 2015 | Stock Option | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options, non-vested, fair value | 1,500 | $ 1,500 | ||||||||
March 12, 2015 | Restricted Stock Grants | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted share awards, non-vested, fair value | $ 1,900 | $ 1,900 | ||||||||
March 12, 2015 | Officer | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 5 years | |||||||||
Award vesting rights, percentage | 20.00% | |||||||||
March 12, 2015 | Officer | Stock Option | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options, granted in period (in shares) | 200,000 | |||||||||
March 12, 2015 | Officer | Restricted Stock Grants | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares granted during period (shares) | 200,000 | |||||||||
Restricted shares vested during period (shares) | 0 | 0 | 0 | 0 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Restricted Shares and Restricted Share Units (Details) - Restricted stock and restricted stock units (RSUs) - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Restricted shares nonvested at period start (shares) | 171,682 | 207,156 |
Restricted shares granted during period (shares) | 0 | 0 |
Restricted shares vested during period (shares) | (8,381) | (28,066) |
Restricted shares canceled during period (shares) | (160,000) | (7,408) |
Restricted shares nonvested at period end (shares) | 3,301 | 171,682 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average fair value at grant date, restricted shares nonvested at period start (USD per share) | $ 17.46 | $ 16.50 |
Weighted average fair value at grant date, restricted shares granted during period (USD per share) | 0 | 0 |
Weighted average fair value at grant date, restricted shares vested during period (USD per share) | 10.22 | 11.79 |
Weighted average fair value at grant date, restricted shares vested during period (USD per share) | 9.62 | 12.20 |
Weighted average fair value at grant date, restricted shares nonvested at period end (USD per share) | $ 10.22 | $ 17.46 |
Other Employee Benefit Plans -
Other Employee Benefit Plans - Defined Contribution Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Employee Benefit Plans [Abstract] | ||||
Defined contribution plan, percent of employee contribution matched by employer, up to 2.5% annual earnings | 100.00% | |||
Defined contribution plan, percent of additional employees annual earnings employer will match 50% | 2.50% | |||
Defined contribution plan, percent of employer match on additional employee contributions, up to 2.5% annual earnings | 50.00% | |||
Defined contribution plan employer additional contribution matching percent of employees gross pay | 2.50% | |||
Defined contribution plan, employer matching contribution, maximum percent of employees' gross pay | 3.75% | |||
Defined contribution plan, employee contribution vesting percentage | 100.00% | |||
Defined contribution plan, employers matching contribution, vesting period | 5 years | |||
Defined contribution plan, company contributions | $ 19 | $ 119 | $ 77 | $ 381 |
Other Employee Benefit Plans _2
Other Employee Benefit Plans - Employee Stock Purchase Plan (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Other Employee Benefit Plans [Abstract] | ||||
Employee stock purchase plan, hours of week threshold for investing in ordinary voting common shares | 30 hours | |||
Employee stock purchase plan, maximum annual contribution percent of annual earnings per employee | 0.075 | |||
Employee stock purchase plan, percent of employee contribution matched by employer, up to 2.5% annual earnings | 1 | |||
Employee stock purchase plan, percent of employees annual earnings employer will match 100% | 2.50% | |||
Employee stock purchase plan employer additional matching contribution on percent of employees gross pay | 50.00% | |||
Employee stock purchase plan, percent of additional employees annual earnings employer will match 50% | 5.00% | |||
Employee stock purchase plan, employer matching contribution, maximum percent of employee's gross pay | 5.00% | |||
Employee stock purchase plan, company cost | $ 5 | $ 21 | $ 21 | $ 107 |
Share Capital and Mezzanine E_3
Share Capital and Mezzanine Equity - Schedule of Stock by Class (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 300,000,001 | |
Common stock, shares issued (in shares) | 12,240,198 | 12,198,319 |
Common stock, shares outstanding (in shares) | 11,984,693 | 11,942,812 |
Common stock, value, outstanding | $ 36 | $ 36 |
Ordinary Voting Common Shares | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 266,666,667 | 266,666,667 |
Common stock, shares issued (in shares) | 12,240,198 | 12,198,319 |
Common stock, shares outstanding (in shares) | 11,984,693 | 11,942,812 |
Common stock, value, outstanding | $ 36 | $ 36 |
Restricted Voting Common Shares | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 33,333,334 | |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Common stock, value, outstanding | $ 0 | $ 0 |
Share Capital and Mezzanine E_4
Share Capital and Mezzanine Equity - Narrative (Details) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Jun. 10, 2019 | |
Class of Stock [Line Items] | |||||
Ordinary voting common shares issued, RSU vesting (in shares) | 201,881 | ||||
Exercise price of warrants or rights (in dollars per share) | $ 0.69 | $ 0.69 | |||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||
Incentive Program | |||||
Class of Stock [Line Items] | |||||
Ordinary voting common shares issued, RSU vesting (in shares) | 193,500 | ||||
Ordinary Voting Common Shares, Sole Power to Dispose of | |||||
Class of Stock [Line Items] | |||||
Class of warrant or right, outstanding (in shares) | 2,387,368 | ||||
Ordinary Voting Common Shares, Warrants to Purchase | |||||
Class of Stock [Line Items] | |||||
Class of warrant or right, outstanding (in shares) | 2,387,368 | ||||
Restricted Stock Units (RSUs) | |||||
Class of Stock [Line Items] | |||||
Nonvested restricted stock units (RSUs) (shares) | 3,301 | 11,682 | |||
Ordinary voting common shares issued, RSU vesting (in shares) | 8,381 | 5,842 | |||
Restricted share and restricted share units grants | |||||
Class of Stock [Line Items] | |||||
Restricted shares canceled during period (shares) | 140,000 | 7,408 | |||
Restricted share and restricted share units grants | Officer | |||||
Class of Stock [Line Items] | |||||
Restricted shares canceled during period (shares) | 20,000 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | $ 0 | $ 5,918 |
Acquisition costs deferred | 0 | 9,497 |
Amortization charged to income | 0 | (11,405) |
Balance, end of period | $ 0 | $ 4,010 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Sep. 30, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use asset | $ 1,068 | $ 1,592 | |
Operating lease liability | $ 1,321 | $ 1,993 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use asset | $ 2,500 | ||
Operating lease liability | 3,100 | ||
Operating lease, expense | $ 600 |
Leases - Lease Expenses (Detail
Leases - Lease Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating leases | $ 190 | $ 242 | $ 570 | $ 718 |
Variable lease cost | 88 | 90 | 268 | 256 |
Lease expense | $ 278 | $ 332 | $ 838 | $ 974 |
Leases - Other Operating Lease
Leases - Other Operating Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows | $ 278 | $ 333 | $ 838 | $ 976 |
Right-of-use assets obtained in exchange for new lease liabilities | 0 | 0 | 0 | 0 |
Lease expense | $ 278 | $ 333 | $ 838 | $ 976 |
Weighted-average remaining lease term | 1 year 4 months 24 days | 1 year 4 months 24 days | ||
Weighted-average discount rate | 3.50% | 3.50% |
Leases - Contractual Operating
Leases - Contractual Operating Lease Liability (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Remainder of 2020 | $ 235 | |
2021 | 898 | |
2022 | 179 | |
2023 | 23 | |
Total lease payments | 1,335 | |
Impact of discounting | (14) | |
Operating lease liability | $ 1,321 | $ 1,993 |
Related Party Transactions (Det
Related Party Transactions (Details) | Sep. 30, 2020 | Dec. 31, 2019 |
Director or Director Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Percent of invested assets considered related party transactions | 14.50% | 1.00% |
Notes Payable - Narrative (Deta
Notes Payable - Narrative (Details) | May 01, 2020USD ($)payment | Apr. 26, 2017USD ($) | Nov. 10, 2016USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) |
PPP Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, face amount | $ 4,600,500 | ||||||
Debt instrument, interest rate, stated percentage | 1.00% | ||||||
Number of equal monthly payments | payment | 18 | ||||||
Debt instrument, periodic payment | $ 257,611.48 | ||||||
Loan Agreement | American Insurance Acquisition | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest expense, including non-utilization fees | $ 571,000 | $ 470,000 | $ 1,700,000 | $ 1,400,000 | |||
Line of Credit [Member] | Loan Agreement | American Insurance Acquisition | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, face amount | $ 10,700,000 | ||||||
Debt instrument, term | 10 years | ||||||
Debt instrument, interest rate, stated percentage | 5.00% | ||||||
Senior unsecured notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, face amount | $ 25,000,000 | ||||||
Debt instrument, term | 5 years | ||||||
Debt instrument, interest rate, stated percentage | 6.625% | ||||||
Amounts of funds accessed in period | $ 23,900,000 | ||||||
Redemption price | 100.00% |
Notes Payable - Debt Outstandin
Notes Payable - Debt Outstanding (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | May 01, 2020 | Dec. 31, 2019 | Apr. 26, 2017 |
Line of Credit Facility [Line Items] | ||||
Total outstanding borrowings | $ 36,657 | $ 32,621 | ||
Unamortized issuance costs | (352) | (521) | ||
Notes payable, net | 36,305 | 32,100 | ||
PPP Loan | ||||
Line of Credit Facility [Line Items] | ||||
Total outstanding borrowings | 4,601 | 0 | ||
Debt instrument, interest rate, stated percentage | 1.00% | |||
6.625% Senior Unsecured Notes due April 26, 2022 | ||||
Line of Credit Facility [Line Items] | ||||
Total outstanding borrowings | 25,000 | 25,000 | ||
Debt instrument, interest rate, stated percentage | 6.625% | |||
5.0% Mortgage due November 10, 2026 | ||||
Line of Credit Facility [Line Items] | ||||
Total outstanding borrowings | $ 7,056 | $ 7,621 |
Deconsolidation and Discontin_3
Deconsolidation and Discontinued Operations Narrative (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Notes receivable | $ 15,500 | $ 15,500 |
Interest Rate, increase on unpaid principal balance | 0.02 | |
Maximum variable interest rate | 0.10 |
Deconsolidation and Discontin_4
Deconsolidation and Discontinued Operations Loss From Discontinued Operations, Net of Tax (Details) - Global Liberty - Discontinued operations, held-for-sale - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Net premiums earned | $ 3,208 | $ 6,054 | $ 11,048 | $ 21,633 |
Net investment (loss) income | (27) | 99 | (44) | 396 |
Net realized losses | 0 | 28 | (1,565) | (46) |
Total revenue | 3,181 | 6,181 | 9,439 | 21,983 |
Net claims incurred | 1,071 | 3,742 | 3,424 | 15,700 |
Acquisition costs | 389 | 350 | 2,818 | 3,222 |
Other underwriting expenses | 1,682 | 1,342 | 3,840 | 3,152 |
Interest (income) | 0 | 0 | 0 | (68) |
Total expenses | 3,142 | 5,434 | 10,082 | 22,006 |
Income (loss) from operations before income taxes | 39 | 747 | (643) | (23) |
Income tax benefit | 0 | 0 | (522) | 0 |
Net income (loss) | 39 | 747 | (121) | (23) |
Changes in net unrealized investments gains | 54 | (60) | 299 | 540 |
Reclassification to net income (loss) | (3) | 167 | (96) | 450 |
Other comprehensive income | 51 | 107 | 203 | 990 |
Total comprehensive income | $ 90 | $ 854 | $ 82 | $ 967 |
Deconsolidation and Discontin_5
Deconsolidation and Discontinued Operations Consolidated Statements of Financial Position (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Liabilities | ||
Total liabilities | $ 52,762 | $ 62,767 |
Global Liberty | Discontinued operations, held-for-sale | ||
Assets | ||
Fixed income securities, available for sale, at fair value (amortized cost $7,516 and $14,016) | 7,942 | 14,239 |
Short-term investments, at cost | 0 | 491 |
Other investments | 1,306 | 1,315 |
Total investments | 9,248 | 16,045 |
Cash and cash equivalents | 1,178 | 7,712 |
Accrued investment income | 52 | 78 |
Reinsurance recoverables on amounts paid | 1,115 | 2,227 |
Reinsurance recoverables on amounts unpaid | 14,358 | 18,339 |
Prepaid reinsurance premiums | 15,574 | 3,765 |
Deferred policy acquisition costs | 682 | 534 |
Property and equipment, net | 0 | 1,741 |
Other assets | 4,405 | 861 |
Total assets | 46,612 | 51,302 |
Liabilities | ||
Claims liabilities | 27,338 | 46,771 |
Unearned premium reserves | 21,652 | 12,423 |
Due to reinsurers | 32 | 1,019 |
Other liabilities and accrued expenses | 3,740 | 2,554 |
Total liabilities | $ 52,762 | $ 62,767 |
Deconsolidation and Discontin_6
Deconsolidation and Discontinued Operations Consolidated Statements of Financial Position (Additional Information) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Discontinued Operations and Disposal Groups [Abstract] | ||
Fixed income securities at fair value, amortized cost | $ 7,516 | $ 14,016 |
Subsequent Events Narrative (De
Subsequent Events Narrative (Details) - Subsequent Event - Second PPP Loan | Nov. 02, 2020USD ($) |
Subsequent Event [Line Items] | |
Debt instrument, face amount | $ 2,000,000 |
Debt instrument, interest rate, stated percentage | 1.00% |