Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 05, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-36777 | |
Entity Registrant Name | JAMES RIVER GROUP HOLDINGS, LTD. | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-0585280 | |
Entity Address, Address Line Three | Clarendon House | |
Entity Address, Address Line Two | 2 Church Street | |
Entity Address, Address Line One | Hamilton | |
Entity Address, City or Town | Pembroke | |
Entity Address, Postal Zip Code | HM11 | |
Entity Address, Country | BM | |
City Area Code | 441 | |
Local Phone Number | 295-1422 | |
Title of 12(b) Security | Common Shares, par value $0.0002 per share | |
Trading Symbol | JRVR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 37,825,767 | |
Entity Central Index Key | 0001620459 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Invested assets: | ||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: 2024 – $1,207,960; 2023 – $1,405,136) | $ 1,114,475 | $ 1,324,476 |
Equity securities, at fair value (cost: 2024 – $120,749; 2023 – $114,107) | 128,564 | 119,945 |
Bank loan participations, at fair value | 165,280 | 156,169 |
Short-term investments | 45,977 | 72,137 |
Other invested assets | 35,834 | 33,134 |
Total invested assets | 1,490,130 | 1,705,861 |
Cash and cash equivalents | 672,523 | 274,298 |
Restricted cash equivalents | 27,963 | 72,449 |
Accrued investment income | 9,850 | 12,106 |
Premiums receivable and agents’ balances, net | 248,995 | 249,490 |
Reinsurance recoverable on unpaid losses, net | 1,417,791 | 1,358,474 |
Reinsurance recoverable on paid losses | 160,555 | 157,991 |
Prepaid reinsurance premiums | 321,142 | 293,108 |
Deferred policy acquisition costs | 27,150 | 31,497 |
Intangible assets, net | 32,631 | 32,813 |
Goodwill | 181,831 | 181,831 |
Other assets | 147,645 | 163,939 |
Assets held-for-sale (Note 2 - discontinued operations) | 0 | 783,393 |
Total assets | 4,738,206 | 5,317,250 |
Liabilities: | ||
Reserve for losses and loss adjustment expenses | 2,720,198 | 2,606,107 |
Unearned premiums | 600,603 | 587,899 |
Payables to reinsurers | 157,006 | 158,670 |
Funds held | 25,157 | 65,235 |
Deferred reinsurance gain | 13,047 | 20,733 |
Senior debt | 200,800 | 222,300 |
Junior subordinated debt | 104,055 | 104,055 |
Accrued expenses | 47,769 | 56,722 |
Other liabilities | 182,882 | 174,513 |
Liabilities held-for-sale (Note 2 - discontinued operations) | 0 | 641,497 |
Total liabilities | 4,051,517 | 4,637,731 |
Commitments and contingent liabilities (Note 8) | ||
Series A redeemable preferred shares – 2024 and 2023: $0.00125 par value; 20,000,000 shares authorized; 150,000 shares issued and outstanding | 144,898 | 144,898 |
Shareholders’ equity: | ||
Common shares – 2024 and 2023: $0.0002 par value; 200,000,000 shares authorized; 37,825,767 and 37,641,563 shares issued and outstanding, respectively | 7 | 7 |
Additional paid-in capital | 879,631 | 876,240 |
Retained deficit | (263,994) | (277,905) |
Accumulated other comprehensive loss | (73,853) | (63,721) |
Total shareholders’ equity | 541,791 | 534,621 |
Total liabilities, Series A redeemable preferred shares, and shareholders’ equity | $ 4,738,206 | $ 5,317,250 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fixed maturity securities, available-for-sale, at amortized cost | $ 1,207,960 | |
Equity securities, at cost | $ 120,749 | $ 114,107 |
Series A redeemable preferred shares, par value (in dollars per share) | $ 0.00125 | $ 0.00125 |
Series A redeemable preferred shares, authorized (in shares) | 20,000,000 | 20,000,000 |
Series A redeemable preferred shares, issued (in shares) | 150,000 | 150,000 |
Series A redeemable preferred shares, outstanding (in shares) | 150,000 | 150,000 |
Common stock, par value (in dollars per share) | $ 0.0002 | $ 0.0002 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 37,825,767 | 37,641,563 |
Common stock, shares outstanding (in shares) | 37,825,767 | 37,641,563 |
Fixed Maturity Securities | ||
Fixed maturity securities, available-for-sale, at amortized cost | $ 1,207,960 | $ 1,405,136 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues | ||||
Gross written premiums | $ 412,247 | $ 423,050 | $ 743,057 | $ 776,504 |
Ceded written premiums | (230,894) | (218,557) | (423,532) | (400,786) |
Net written premiums | 181,353 | 204,493 | 319,525 | 375,718 |
Change in net unearned premiums | (18,160) | (31,024) | 15,359 | (33,339) |
Net earned premiums | 163,193 | 173,469 | 334,884 | 342,379 |
Net investment income | 24,931 | 18,234 | 47,563 | 36,659 |
Net realized and unrealized (losses) gains on investments | (2,305) | 1,615 | 2,278 | 1,775 |
Other income | 2,470 | 1,464 | 4,691 | 2,773 |
Total revenues | 188,289 | 194,782 | 389,416 | 383,586 |
Expenses | ||||
Losses and loss adjustment expenses | 115,471 | 120,440 | 225,520 | 246,821 |
Other operating expenses | 44,096 | 50,193 | 94,906 | 98,229 |
Other expenses | 2,098 | 223 | 2,830 | 826 |
Interest expense | 6,344 | 5,997 | 12,829 | 11,580 |
Amortization of intangible assets | 91 | 91 | 182 | 182 |
Total expenses | 168,100 | 176,944 | 336,267 | 357,638 |
Income from continuing operations before income taxes | 20,189 | 17,838 | 53,149 | 25,948 |
Income tax expense on continuing operations | 5,711 | 5,709 | 15,163 | 8,517 |
Net income from continuing operations | 14,478 | 12,129 | 37,986 | 17,431 |
Discontinued operations (Note 2): | ||||
(Loss) income from discontinued operations | (5,650) | 3,785 | (13,583) | 5,489 |
Loss on disposal of discontinued operations | (1,203) | 0 | (1,375) | 0 |
Total (loss) income from discontinued operations | (6,853) | 3,785 | (14,958) | 5,489 |
Net income | 7,625 | 15,914 | 23,028 | 22,920 |
Dividends on Series A preferred shares | (2,625) | (2,625) | (5,250) | (5,250) |
Net income available to common shareholders | 5,000 | 13,289 | 17,778 | 17,670 |
Other comprehensive (loss) income: | ||||
Net unrealized (losses) gains, net of taxes of $(627) and $(2,693) in 2024 and $(3,633) and $1,369 in 2023 | (2,359) | (16,457) | (10,132) | 14,445 |
Total comprehensive income (loss) | $ 5,266 | $ (543) | $ 12,896 | $ 37,365 |
Basic | ||||
Continuing operations (in dollars per share) | $ 0.31 | $ 0.25 | $ 0.87 | $ 0.32 |
Discontinued operations (in dollars per share) | (0.18) | 0.10 | (0.40) | 0.15 |
Basic (in dollars per share) | 0.13 | 0.35 | 0.47 | 0.47 |
Diluted | ||||
Continuing operations (in dollars per share) | 0.31 | 0.25 | 0.85 | 0.32 |
Discontinued operations (in dollars per share) | (0.18) | 0.10 | (0.33) | 0.15 |
Diluted (in dollars per share) | 0.13 | 0.35 | 0.52 | 0.47 |
Dividend declared per common share (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.10 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 37,869,322 | 37,642,289 | 37,801,516 | 37,587,359 |
Diluted (in shares) | 38,037,393 | 37,858,747 | 44,762,563 | 37,822,405 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Tax on net unrealized (losses) gains | $ (627) | $ (2,693) | $ (3,633) | $ 1,369 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive Loss |
Balance (in shares) at Dec. 31, 2022 | 37,470,237 | ||||
Balance at Dec. 31, 2022 | $ 553,766 | $ 7 | $ 868,858 | $ (152,055) | $ (163,044) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 22,920 | 22,920 | |||
Other comprehensive income (loss) | 14,445 | 14,445 | |||
Vesting of RSUs (in shares) | 148,989 | ||||
Vesting of RSUs | (1,507) | (1,507) | |||
Compensation expense under share incentive plans | 5,008 | 5,008 | |||
Dividends on Series A preferred shares | (5,250) | (5,250) | |||
Dividends on common shares | (3,840) | (3,840) | |||
Balance (in shares) at Jun. 30, 2023 | 37,619,226 | ||||
Balance at Jun. 30, 2023 | 585,542 | $ 7 | 872,359 | (138,225) | (148,599) |
Balance (in shares) at Mar. 31, 2023 | 37,619,226 | ||||
Balance at Mar. 31, 2023 | 588,313 | $ 7 | 870,043 | (149,595) | (132,142) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 15,914 | 15,914 | |||
Other comprehensive income (loss) | (16,457) | (16,457) | |||
Compensation expense under share incentive plans | 2,316 | 2,316 | |||
Dividends on Series A preferred shares | (2,625) | (2,625) | |||
Dividends on common shares | (1,919) | (1,919) | |||
Balance (in shares) at Jun. 30, 2023 | 37,619,226 | ||||
Balance at Jun. 30, 2023 | $ 585,542 | $ 7 | 872,359 | (138,225) | (148,599) |
Balance (in shares) at Dec. 31, 2023 | 37,641,563 | 37,641,563 | |||
Balance at Dec. 31, 2023 | $ 534,621 | $ 7 | 876,240 | (277,905) | (63,721) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 23,028 | 23,028 | |||
Other comprehensive income (loss) | (10,132) | (10,132) | |||
Vesting of RSUs (in shares) | 184,204 | ||||
Vesting of RSUs | (837) | (837) | |||
Compensation expense under share incentive plans | 4,228 | 4,228 | |||
Dividends on Series A preferred shares | (5,250) | (5,250) | |||
Dividends on common shares | $ (3,867) | (3,867) | |||
Balance (in shares) at Jun. 30, 2024 | 37,825,767 | 37,825,767 | |||
Balance at Jun. 30, 2024 | $ 541,791 | $ 7 | 879,631 | (263,994) | (73,853) |
Balance (in shares) at Mar. 31, 2024 | 37,822,340 | ||||
Balance at Mar. 31, 2024 | 539,537 | $ 7 | 878,091 | (267,067) | (71,494) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 7,625 | 7,625 | |||
Other comprehensive income (loss) | (2,359) | (2,359) | |||
Vesting of RSUs (in shares) | 3,427 | ||||
Vesting of RSUs | (13) | (13) | |||
Compensation expense under share incentive plans | 1,553 | 1,553 | |||
Dividends on Series A preferred shares | (2,625) | (2,625) | |||
Dividends on common shares | $ (1,927) | (1,927) | |||
Balance (in shares) at Jun. 30, 2024 | 37,825,767 | 37,825,767 | |||
Balance at Jun. 30, 2024 | $ 541,791 | $ 7 | $ 879,631 | $ (263,994) | $ (73,853) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | ||
Operating activities | |||
Net cash provided by operating activities | [1] | $ 15,397 | $ 42,621 |
Investing activities | |||
Sale of JRG Re | 96,412 | 0 | |
Securities available-for-sale: | |||
Purchases – fixed maturity securities | (28,727) | (142,680) | |
Sales – fixed maturity securities | 198,046 | 10,092 | |
Maturities and calls – fixed maturity securities | 84,596 | 55,520 | |
Purchases – equity securities | (7,311) | (8,557) | |
Sales – equity securities | 6,190 | 8,548 | |
Bank loan participations: | |||
Purchases | (80,700) | (17,119) | |
Sales | 51,913 | 20,020 | |
Maturities | 19,252 | 12,650 | |
Other invested assets: | |||
Purchases | (4,725) | (375) | |
Return of capital | 472 | 682 | |
Proceeds from sales | 2,763 | 1,153 | |
Short-term investments, net | 26,160 | 85,684 | |
Securities receivable or payable, net | (6,386) | 3,625 | |
Purchases of property and equipment | (1,327) | (2,173) | |
Net cash provided by investing activities | 356,628 | 27,070 | |
Financing activities | |||
Senior debt repayments | (21,500) | 0 | |
Payroll taxes withheld and remitted on net settlement of RSUs | (837) | (1,507) | |
Dividends on Series A preferred shares | (5,250) | (7,875) | |
Dividends on common shares | (3,901) | (3,931) | |
Payment of debt issuance costs | 0 | (16) | |
Net cash used in financing activities | (31,488) | (13,329) | |
Change in cash, cash equivalents, and restricted cash equivalents | 340,537 | 56,362 | |
Cash, cash equivalents, and restricted cash equivalents at beginning of period | 359,949 | 276,379 | |
Cash, cash equivalents, and restricted cash equivalents at end of period | 700,486 | 332,741 | |
Supplemental information | |||
Interest paid | 15,628 | 14,877 | |
Restricted cash equivalents at beginning of period | 72,449 | 103,215 | |
Restricted cash equivalents at end of period | 27,963 | 105,502 | |
Change in restricted cash equivalents | $ (44,486) | $ 2,287 | |
[1]Cash provided by operating activities for the six months ended June 30, 2024 and 2023 includes the restricted cash activity above related to a former insured, per the terms of a collateral trust. See “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Amounts Recoverable from an Indemnifying Party and Reinsurer on Legacy Commercial Auto Book ”. Excluding the restricted cash activity, cash provided by operating activities was $59.9 million and $40.3 million for the six months ended June 30, 2024 and 2023, respectively. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Cash Flows [Abstract] | ||
Cash provided by (used in) operating activities excluding reduction in collateral funds | $ 59.9 | $ 40.3 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Organization James River Group Holdings, Ltd. (referred to as “JRG Holdings” or, with its subsidiaries, the “Company”) is an exempted holding company registered in Bermuda, organized for the purpose of acquiring and managing insurance entities. The Company owns five insurance companies based in the United States (“U.S.”) focused on specialty insurance niches as described below: • James River Group Holdings UK Limited (“James River UK”) is an insurance holding company formed in 2015 in the United Kingdom (“U.K.”). JRG Holdings contributed James River Group, Inc. (“James River Group”), a U.S. insurance holding company, to James River UK in 2015. • James River Group is a Delaware domiciled insurance holding company formed in 2002 which owns all of the Company’s U.S.-based subsidiaries, either directly or indirectly through one of its wholly-owned U.S. subsidiaries. James River Group oversees the Company’s U.S. insurance operations and maintains all of the outstanding debt in the U.S. • James River Insurance Company is an Ohio domiciled excess and surplus lines insurance company that, with its wholly-owned insurance subsidiary, James River Casualty Company, an Ohio domiciled company, is authorized to write business in every state and the District of Columbia. • Falls Lake National Insurance Company (“Falls Lake National”) is an Ohio domiciled insurance company which wholly owns Stonewood Insurance Company, an Ohio domiciled company, and Falls Lake Fire and Casualty Company, a California domiciled company. Falls Lake National and its subsidiaries primarily write specialty admitted fronting and program business. The Company previously owned JRG Reinsurance Company Ltd. (“JRG Re”), a Bermuda domiciled reinsurer, which comprised the former Casualty Reinsurance segment, and which, prior to the suspension of its underwriting activities in 2023, primarily provided non-catastrophe casualty reinsurance to U.S. third parties. On November 8, 2023, the Company entered into an agreement to sell JRG Re. The sale closed on April 16, 2024 and resulted in the Company’s disposition of its casualty reinsurance business and related assets. See Held-for-Sale and Discontinued Operations below and Note 2 for additional disclosure. Basis of Presentation The accompanying condensed consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include the results of the Company and its subsidiaries from their respective dates of inception or acquisition, as applicable. Readers are urged to review the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 for a more complete description of the Company’s business and accounting policies. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results of operations for the full year. The consolidated balance sheet as of December 31, 2023 was derived from the Company’s audited annual consolidated financial statements. Intercompany transactions and balances have been eliminated. Held-for-Sale and Discontinued Operations The results of operations of a component of the Company are reported in discontinued operations when certain criteria are met as of the date of disposal, or earlier if classified as held-for-sale. The Company determined that the definitive agreement to sell JRG Re met the criteria for JRG Re to be classified as held for sale at December 31, 2023 and that the sale represented a strategic shift that will have a major effect on the Company's operations. Accordingly, the results of JRG Re's operations have been presented as discontinued operations, and the assets and liabilities of JRG Re at December 31, 2023 have been classified as held-for-sale and segregated for all periods presented in this interim report on Form 10-Q. See Note 2 for additional disclosure. Estimates and Assumptions Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates. Variable Interest Entities Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (“VIE”). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose, and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. The Company holds interests in VIEs through certain equity method investments included in “other invested assets” in the accompanying condensed consolidated balance sheets. The Company has determined that it should not consolidate any of the VIEs as it is not the primary beneficiary in any of the relationships. Although the investments resulted in the Company holding variable interests in the entities, they did not empower the Company to direct the activities that most significantly impact the economic performance of the entities. The Company’s investments related to these VIEs totaled $8.0 million at June 30, 2024 and $8.4 million at December 31, 2023, representing the Company’s maximum exposure to loss. Income Tax Expense Our effective tax rate fluctuates from period to period based on the relative mix of income from continuing operations reported by country and the respective tax rates imposed by each tax jurisdiction. Statutory tax rates are 0% and 21% for Bermuda and the U.S. For the three and six months ended June 30, 2024, our effective tax rate on income from continuing operations was 28.3% and 28.5%, respectively (32.0% and 32.8% in the respective prior year periods). The Company does not receive a U.S. tax deduction for losses in our Bermuda entities. Bermuda had losses in both periods primarily due to Bermuda holding company expenses and interest expense. For U.S.-sourced income, the Company’s U.S. federal income tax expense differs from the amounts computed by applying the federal statutory income tax rate to income before taxes due primarily to interest income on tax-advantaged state and municipal securities, dividends received income, and excess tax benefits and expenses on share based compensation. Adopted Accounting Standards There were no new accounting standards adopted in 2024 that materially impacted the Company's financial statements. Prospective Accounting Standards The guidance in ASU 2023-07 —Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures was designed to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Although the Company continues to evaluate the impact of adopting this new accounting standard, the amendments are disclosure-related and are not expected to have a material impact on our financial statements. The guidance in ASU 2023-09 —Income Taxes (Topic 740): Improvements to Income Tax Disclosures was designed to increase transparency about income tax information through improvements to the rate reconciliation and disclosure of income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024. Although the Company continues to evaluate the impact of adopting this new accounting standard, the amendments are disclosure-related and are not expected to have a material impact on our financial statements. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On November 8, 2023, the Company entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) with Fleming Intermediate Holdings LLC, a Cayman Islands limited liability company (the “Buyer”). Pursuant to the Stock Purchase Agreement, and on the terms and subject to the conditions therein, the Buyer agreed to purchase from the Company all of the common shares of JRG Re. JRG Re comprised the remaining operations of the former Casualty Reinsurance segment, and the sale of JRG Re, which closed on April 16, 2024, resulted in the Company’s disposition of its casualty reinsurance business and related assets. Pursuant to the terms of the Stock Purchase Agreement, the aggregate purchase price received by the Company, after giving effect to estimated adjustments based on changes in JRG Re’s adjusted net worth between March 31, 2023 and the closing, totaled approximately $291.4 million (the “Closing Date Purchase Price”). The aggregate Closing Date Purchase Price was comprised of (i) $152.4 million paid in cash by the Buyer and (ii) an aggregate $139.0 million dividend and distribution from contributed surplus by JRG Re to the Company. In accordance with the Stock Purchase Agreement, the cash portion of the purchase price was calculated based on an estimated balance sheet of JRG Re as of the date of closing. The estimated balance sheet is subject to final post-closing adjustments, which could result in adjustments to the purchase price. Additionally, the Buyer may pay an additional $2.5 million to the Company in the event that certain conditions outlined in the Stock Purchase Agreement are met on the date that is nine months following the date of closing. The Buyer delivered a closing statement to the Company, and pursuant to the procedures in the Stock Purchase Agreement, the Company has given its notice of disagreement with the Buyer’s closing statement. In its notice of disagreement, the Company (i) agreed with an $11.4 million downward adjustment to the Closing Date Purchase Price due to losses from JRG Re’s operations between the date of the balance sheet used to produce the estimated closing statement and the Closing Date, which downward adjustment is included in “Other Liabilities” on the Company’s Balance Sheet at June 30, 2024, and (ii) disputed $54.1 million in aggregate downward adjustments to the Closing Date Purchase Price claimed by the Buyer, which the Company believes are unsupported by the facts known to the Company and the terms of the Stock Purchase Agreement. The Stock Purchase Agreement provides procedures for resolving disputes between the parties regarding the closing statement and it is possible that the resolution of these disputes could result in a significant reduction to the amount of the purchase price. The Company determined that the sale of JRG Re met the criteria to be classified as held for sale at December 31, 2023 and that the sale represented a strategic shift that will have a major effect on its operations. Accordingly, the results of JRG Re's operations have been presented as discontinued operations, and the assets and liabilities of JRG Re at December 31, 2023 have been classified as held for sale and segregated for all periods presented in this interim report on Form 10-Q. The $139.0 million pre-closing dividend was completed in the first quarter of 2024. It included the forgiveness of $133.2 million owed from JRG Holdings to JRG Re and $5.8 million paid in cash to JRG Holdings. In the fourth quarter of 2023, after giving effect to the pre-closing dividend, we recorded an estimated loss on sale of $80.4 million to write down the carrying value of JRG Re to its estimated fair value based upon the estimated sales price of the transaction less costs to sell and other adjustments in accordance with the Stock Purchase Agreement. In the six months ended June 30, 2024, the estimated loss on the sale was revised to $78.0 million. The loss on disposal for the six months ended June 30, 2024 of $1.4 million includes the $2.4 million gain for the change in the estimated loss on sale and selling costs incurred of $3.8 million. The $5.8 million cash portion of the pre-closing dividend was included in other liabilities at December 31, 2023. JRG Re's assets and liabilities held for sale at December 31, 2023 were comprised of the following: December 31, (in thousands) Assets Invested assets: Fixed maturity securities, at fair value $ 532,242 Equity securities, at fair value 2,779 Total invested assets 535,021 Cash and cash equivalents 13,202 Accrued investment income 3,589 Premiums receivable and agents’ balances, net 68,441 Reinsurance recoverable on unpaid and paid losses, net 234,615 Deferred policy acquisition costs 4,986 Write down of JRG Re to fair value less cost to sell (80,400) Other assets 3,939 Assets held for sale $ 783,393 Liabilities Reserve for losses and loss adjustment expenses $ 441,666 Unearned premiums 17,223 Funds held 137,796 Deferred reinsurance gain 33,167 Accrued expenses 1,955 Other liabilities 9,690 Liabilities held for sale $ 641,497 The operating results of JRG Re reported in discontinued operations were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Revenues: Gross written premiums $ 780 $ 4,691 $ 1,137 $ 15,130 Ceded written premiums — (396) 877 (1,770) Net written premiums 780 4,295 2,014 13,360 Change in net unearned premiums 940 22,503 8,371 49,711 Net earned premiums 1,720 26,798 10,385 63,071 Net investment income 580 6,941 4,432 14,288 Net realized and unrealized (losses) gains on investments (7,229) 530 (9,472) 777 Total revenues (4,929) 34,269 5,345 78,136 Expenses: Losses and loss adjustment expenses (281) 20,868 13,157 49,775 Other operating expenses 913 8,672 5,039 20,895 Interest expense 89 944 732 1,977 Total expenses 721 30,484 18,928 72,647 (Loss) income from discontinued operations (5,650) 3,785 (13,583) 5,489 Loss on disposal of discontinued operations (1,203) — (1,375) — Total (loss) income from discontinued operations (6,853) 3,785 (14,958) 5,489 Cash flows from discontinued operations included in the consolidated statements of cash flows were as follows: Six Months Ended June 30, 2024 2023 (in thousands) Net cash used in operating activities of discontinued operations $ (25,115) $ (48,878) Net cash provided by investing activities of discontinued operations 63,104 59,555 Net cash provided by (used in) discontinued operations $ 37,989 $ 10,677 Interest paid by discontinued operations $ 1,388 $ 2,162 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2024 | |
Investments [Abstract] | |
Investments | Investments The Company’s available-for-sale fixed maturity securities are summarized as follows: Cost or Gross Gross Fair (in thousands) June 30, 2024 Fixed maturity securities: State and municipal $ 229,975 $ 632 $ (27,682) $ 202,925 Residential mortgage-backed 310,235 56 (25,008) 285,283 Corporate 435,227 721 (30,632) 405,316 Commercial mortgage and asset-backed 209,115 48 (10,859) 198,304 U.S. Treasury securities and obligations guaranteed by the U.S. government 23,408 — (761) 22,647 Total fixed maturity securities, available-for-sale $ 1,207,960 $ 1,457 $ (94,942) $ 1,114,475 December 31, 2023 Fixed maturity securities: State and municipal $ 273,462 $ 1,834 $ (26,459) $ 248,837 Residential mortgage-backed 336,064 1,243 (19,379) 317,928 Corporate 530,408 4,167 (28,847) 505,728 Commercial mortgage and asset-backed 235,302 78 (12,527) 222,853 U.S. Treasury securities and obligations guaranteed by the U.S. government 29,900 8 (778) 29,130 Total fixed maturity securities, available-for-sale $ 1,405,136 $ 7,330 $ (87,990) $ 1,324,476 The amortized cost and fair value of available-for-sale investments in fixed maturity securities at June 30, 2024 are summarized, by contractual maturity, as follows: Cost or Fair (in thousands) One year or less $ 19,661 $ 19,434 After one year through five years 308,786 299,268 After five years through ten years 230,535 204,929 After ten years 129,628 107,257 Residential mortgage-backed 310,235 285,283 Commercial mortgage and asset-backed 209,115 198,304 Total $ 1,207,960 $ 1,114,475 Actual maturities may differ for some securities because borrowers have the right to call or prepay obligations with or without penalties. The following table shows the Company’s gross unrealized losses and fair value for available-for-sale securities aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross (in thousands) June 30, 2024 Fixed maturity securities: State and municipal $ 24,864 $ (604) $ 157,731 $ (27,078) $ 182,595 $ (27,682) Residential mortgage-backed 74,310 (1,177) 200,429 (23,831) 274,739 (25,008) Corporate 70,309 (802) 274,982 (29,830) 345,291 (30,632) Commercial mortgage and asset-backed 14,119 (95) 142,399 (10,764) 156,518 (10,859) U.S. Treasury securities and obligations guaranteed by the U.S. government 1,497 (22) 21,151 (739) 22,648 (761) Total fixed maturity securities, available-for-sale $ 185,099 $ (2,700) $ 796,692 $ (92,242) $ 981,791 $ (94,942) December 31, 2023 Fixed maturity securities: State and municipal $ 30,196 $ (287) $ 168,517 $ (26,172) $ 198,713 $ (26,459) Residential mortgage-backed 68,497 (1,256) 145,954 (18,123) 214,451 (19,379) Corporate 55,970 (532) 290,308 (28,315) 346,278 (28,847) Commercial mortgage and asset-backed 24,048 (151) 182,295 (12,376) 206,343 (12,527) U.S. Treasury securities and obligations guaranteed by the U.S. government 7,961 (71) 19,889 (707) 27,850 (778) Total fixed maturity securities, available-for-sale $ 186,672 $ (2,297) $ 806,963 $ (85,693) $ 993,635 $ (87,990) At June 30, 2024, the Company held fixed maturity securities of 422 issuers that were in an unrealized loss position with a total fair value of $981.8 million and gross unrealized losses of $94.9 million. None of the fixed maturity securities with unrealized losses has ever missed, or been delinquent on a scheduled principal or interest payment. At June 30, 2024, 100.0% of the Company’s fixed maturity security portfolio was rated “BBB-” or better (“investment grade”) by Standard & Poor’s or received an equivalent rating from another nationally recognized rating agency. The Company reviews its available-for-sale fixed maturities to determine whether unrealized losses are due to credit-related factors. An allowance for credit losses is established for any credit-related impairments, limited to the amount by which fair value is below amortized cost. Changes in the allowance for credit losses are recognized in earnings and included in n et realized and unrealized gains (losses) on investments . Unrealized losses that are not credit-related are recognized in other comprehensive income. The Company considers the extent to which fair value is below amortized cost in determining whether a credit-related loss exists. The Company also considers the credit quality rating of the security, with a special emphasis on securities downgraded below investment grade. A comparison is made between the present value of expected future cash flows for a security and its amortized cost. If the present value of future expected cash flows is less than amortized cost, a credit loss is presumed to exist and an allowance for credit losses is established. Management may conclude that a qualitative analysis is sufficient to support its conclusion that the present value of the expected cash flows equals or exceeds a security’s amortized cost. As a result of this review, management concluded that there were no credit-related impairments of fixed maturity securities at June 30, 2024, December 31, 2023, or June 30, 2023. During the three months ended June 30, 2024, management recognized an impairment loss of $207,000 for one fixed maturity security due to the Company’s inability to hold the security until a recovery in its value to the amortized cost basis. For the remainder of securities in an unrealized loss position, management does not intend to sell the securities, and it is not “more likely than not” that the Company will be required to sell these securities before a recovery in their value to their amortized cost basis occurs. The Company elected the fair value option to account for bank loan participations. Under the fair value option, bank loan participations are measured at fair value, and changes in unrealized gains and losses in bank loan participations are reported in the income statement as net realized and unrealized gains (losses) on investments. Applying the fair value option to the bank loan portfolio increases volatility in the Company's financial statements, but management believes it is less subjective and less burdensome to implement and maintain than ASU 2016-13, which would have otherwise been required. At June 30, 2024, the Company's bank loan portfolio had an aggregate fair value of $165.3 million and unpaid principal of $173.4 million. Investment income on bank loan participations included in net investment income was $4.6 million and $9.1 million for the three and six months ended June 30, 2024, respectively ( $2.0 million and $3.5 million for the three and six months ended June 30, 2023, respectively) . Net realized and unrealized losses on bank loan participations were $843,000 and $1.1 million for the three and six months ended June 30, 2024, respectively (gains of $1.6 million and $2.1 million for the three and six months ended June 30, 2023, respectively) . For the three and six months ended June 30, 2024, management concluded that $1.4 million and $2.6 million of the unrealized losses were due to credit-related impairments. For the three and six months ended June 30, 2023, management concluded that $497,000 and $1.0 million of the unrealized losses were due to credit-related impairments. Losses due to credit-related impairments are determined based upon consultations and advice from the Company's specialized investment manager and consideration of any adverse situations that could affect the borrower's ability to repay, the estimated value of underlying collateral, and other relevant factors. Bank loan participations generally provide a higher yield than our portfolio of fixed maturities and have a credit rating that is below investment grade (i.e. below “BBB-” for Standard & Poor’s) at the date of purchase. These bank loans are primarily senior, secured floating-rate debt rated “BB”, “B”, or “CCC” by Standard & Poor’s or an equivalent rating from another nationally recognized rating agency. These bank loans include assignments of, and participations in, performing and non-performing senior corporate debt generally acquired through primary bank syndications and in secondary markets. Bank loans consist of, but are not limited to, term loans, the funded and unfunded portions of revolving credit loans, and other similar loans and investments. Management believed that it was probable at the time that these loans were acquired that the Company would be able to collect all contractually required payments receivable. Interest income on bank loan participations is accrued on the unpaid principal balance, and discounts and premiums on bank loan participations are amortized to income using the interest method. Generally, the accrual of interest on a bank loan participation is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest. A bank loan participation may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Generally, bank loan participations are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Interest received on nonaccrual loans generally is reported as investment income. There were no bank loans on nonaccrual status at June 30, 2024 or December 31, 2023. The Company’s net realized and unrealized gains and losses on investments are summarized as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Fixed maturity securities: Gross realized gains $ 1,543 $ — $ 1,543 $ — Gross realized losses (2,341) (20) (2,652) (27) (798) (20) (1,109) (27) Bank loan participations: Gross realized gains 223 22 531 42 Gross realized losses (313) (2,286) (1,261) (2,709) Changes in fair values of bank loan participations (753) 3,823 (394) 4,733 (843) 1,559 (1,124) 2,066 Equity securities: Gross realized gains 423 350 1,547 931 Gross realized losses — — (177) (267) Changes in fair values of equity securities (1,087) (269) 3,141 (912) (664) 81 4,511 (248) Short-term investments and other: Gross realized gains — — — 2 Gross realized losses — (5) — (18) Changes in fair values of short-term investments and other — — — — — (5) — (16) Total $ (2,305) $ 1,615 $ 2,278 $ 1,775 Realized investment gains or losses are determined on a specific identification basis. The Company invests selectively in private debt and equity opportunities. These investments, which together comprise the Company’s other invested assets, are primarily focused in renewable energy, limited partnerships, and private debt. Carrying Value Investment Income June 30, December 31, Three Months Ended Six Months Ended 2024 2023 2024 2023 2024 2023 (in thousands) Renewable energy LLCs (a) Excess and Surplus Lines $ 8,003 $ 8,382 $ 948 $ (305) $ 662 $ 698 Corporate & Other — — 293 — 293 170 8,003 8,382 1,241 (305) 955 868 Renewable energy notes receivable ( b) Excess and Surplus Lines — 608 — 36 61 72 Corporate & Other — 761 — 45 77 90 — 1,369 — 81 138 162 Limited partnerships (c) Excess and Surplus Lines 12,987 11,914 517 370 402 621 Corporate & Other 664 664 — — — — 13,651 12,578 517 370 402 621 Private Debt (d) Excess and Surplus Lines 14,180 10,805 151 86 269 172 Corporate & Other — — — — — — 14,180 10,805 151 86 269 172 Total other invested assets Excess and Surplus Lines 35,170 31,709 1,616 187 1,394 1,563 Corporate & Other 664 1,425 293 45 370 260 $ 35,834 $ 33,134 $ 1,909 $ 232 $ 1,764 $ 1,823 (a) The Company's Excess and Surplus Lines segment owns equity interests ranging from 2.5% to 4.9% in various LLCs whose principal objective is capital appreciation and income generation from owning and operating renewable energy production facilities (wind and solar). The Company's former Non-Executive Chairman invested in certain of these LLCs. The equity method is used to account for the Company’s LLC investments. Income for the LLCs primarily reflects adjustments to the carrying values of investments in renewable energy projects to their determined fair values. The fair value adjustments are included in revenues for the LLCs. Expenses for the LLCs are not significant and are comprised of administrative and interest expenses. The Company received cash distributions from these investments totaling $161,000 and $24,000 in the six months ended June 30, 2024 and 2023, respectively. During the fourth quarter of 2022, the underlying projects in two of our LLCs were sold at the manager's discretion. In the three months ended March 31, 2023, the Company received additional proceeds from the sales of $1.2 million comprised of $984,000 in the Excess and Surplus Lines segment and $170,000 in the Corporate and Other segment. In the three months ended June 30, 2024, the Company received additional proceeds from the sale of $1.2 million comprised of $880,000 in the Excess and Surplus Lines segment and $293,000 in the Corporate and Other segment. (b) The Company's Excess and Surplus Lines and Corporate and Other segments invested in two notes receivable for renewable energy projects. Interest on the notes was fixed at 12%. During the six months ended June 30, 2024 , the Company received final principal repayments of $608,000 and $761,000 on the notes receivable in the Company's Excess and Surplus Lines segment and Corporate and Other segment, respectively. (c) The Company owns investments in limited partnerships that invest in concentrated portfolios including publicly-traded small cap equities, loans of middle market private equity sponsored companies, private equity general partnership interests, commercial mortgage-backed securities, specialty private credit, and tranches of distressed home loans. Income f rom the partnerships is recognized under the equity method of accounting. At June 30, 2024, the Company’s Excess and Surplus Lines segment has outstanding commitments to invest another $5.0 million in the limited partnerships. (d) The Company's Excess and Surplus Lines segment has invested in two notes receivable for structured private specialty credit. Interest on the notes, which mature in 2031, is fixed at 4.25% and 5.25%. At June 30, 2024, the Company’s Excess and Surplus Lines segment has outstanding commitments to invest another $2.3 million in these notes. Previously, the Company's Excess and Surplus Lines segment held $4.5 million of subordinated notes issued by a bank holding company for which the former Non-Executive Chairman of the Company was previously the Lead Independent Director and an investor. T he notes matured on August 12, 2023. Interest on the notes was fixed at 7.6% per annum. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets On December 11, 2007, the Company completed an acquisition of James River Group by acquiring 100% of the outstanding shares of James River Group common stock, referred to herein as the “Merger”. The transaction was accounted for under the purchase method of accounting, and goodwill and intangible assets were recognized by the Company as a result of the transaction. Goodwill resulting from the Merger was $181.8 million at June 30, 2024 and December 31, 2023. The gross carrying amounts and accumulated amortization for each major specifically identifiable intangible asset class were as follows: June 30, 2024 December 31, 2023 Life Gross Accumulated Gross Accumulated ($ in thousands) Intangible Assets Trademarks Indefinite $ 19,700 $ — $ 19,700 $ — Insurance licenses and authorities Indefinite 8,964 — 8,964 — Identifiable intangible assets not subject to amortization 28,664 — 28,664 — Broker relationships 24.6 11,611 7,644 11,611 7,462 Identifiable intangible assets subject to amortization 11,611 7,644 11,611 7,462 $ 40,275 $ 7,644 $ 40,275 $ 7,462 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following represents a reconciliation of the numerator and denominator of the basic and diluted earnings per common share computations contained in the condensed consolidated financial statements: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands, except share and per share amounts) Net income from continuing operations $ 14,478 $ 12,129 $ 37,986 $ 17,431 Less: Dividends on Series A preferred shares (2,625) (2,625) (5,250) (5,250) Income from continuing operations available to common shareholders $ 11,853 $ 9,504 $ 32,736 $ 12,181 (Loss) income from discontinued operations (6,853) 3,785 (14,958) 5,489 Net income available to common shareholders $ 5,000 $ 13,289 $ 17,778 $ 17,670 Weighted average common shares outstanding: Basic 37,869,322 37,642,289 37,801,516 37,587,359 Dilutive potential common shares 168,071 216,458 6,961,047 235,046 Diluted 38,037,393 37,858,747 44,762,563 37,822,405 Net income (loss) per common share: Basic Continuing operations $ 0.31 $ 0.25 $ 0.87 $ 0.32 Discontinued operations $ (0.18) $ 0.10 $ (0.40) $ 0.15 $ 0.13 $ 0.35 $ 0.47 $ 0.47 Diluted Continuing operations $ 0.31 $ 0.25 $ 0.85 $ 0.32 Discontinued operations $ (0.18) $ 0.10 $ (0.33) $ 0.15 $ 0.13 $ 0.35 $ 0.52 $ 0.47 For the three months ended June 30, 2024, potential common shares of 6,848,763 were excluded from the calculation of diluted earnings per common share as their effects were anti-dilutive. For the six months ended June 30, 2024, all potential common shares were dilutive and included in the calculation of diluted earnings per common share . For the three and six months ended June 30, 2023, potential common shares of 5,640,158 were excluded from the calculations of diluted earnings per common share as their effects were anti-dilutive. |
Reserve for Losses and Loss Adj
Reserve for Losses and Loss Adjustment Expenses | 6 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
Reserve for Losses and Loss Adjustment Expenses | Reserve for Losses and Loss Adjustment Expenses The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses, net of reinsurance, to the gross amounts reported in the condensed consolidated balance sheets. Reinsurance recoverables on unpaid losses and loss adjustment expenses are presented gross of an allowance for credit losses on reinsurance balances of $744,000 at June 30, 2024, $660,000 at March 31, 2024 and December 31, 2023, $637,000 at June 30, 2023, $628,000 at March 31, 2023, and $580,000 at December 31, 2022. Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period $ 1,283,386 $ 1,121,532 $ 1,246,973 $ 1,080,766 Add: Incurred losses and loss adjustment expenses net of reinsurance: Current year 108,497 123,413 222,946 238,589 Prior years - retroactive reinsurance (3,684) (2,252) (7,686) 9,448 Prior years - excluding retroactive reinsurance 10,658 (721) 10,260 (1,216) Total incurred losses and loss and adjustment expenses 115,471 120,440 225,520 246,821 Deduct: Loss and loss adjustment expense payments net of reinsurance: Current year 6,189 5,520 8,283 8,081 Prior years 94,690 83,747 170,234 155,101 Total loss and loss adjustment expense payments 100,879 89,267 178,517 163,182 Deduct: Change in deferred reinsurance gain - retroactive reinsurance (3,684) (2,252) (7,686) 9,448 Reserve for losses and loss adjustment expenses net of reinsurance recoverables at end of period 1,301,662 1,154,957 1,301,662 1,154,957 Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period 1,418,536 1,307,227 1,418,536 1,307,227 Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period $ 2,720,198 $ 2,462,184 $ 2,720,198 $ 2,462,184 The Company experienced $10.7 million of net adverse reserve development in the three months ended June 30, 2024 on the reserve for losses and loss adjustment expenses held at December 31, 2023 (excluding adverse prior year development on the commercial auto loss portfolio transfer subject to retroactive reinsurance accounting - see Loss Portfolio Transfer below). This reserve development included $10.7 million of net adverse development in the Excess and Surplus Lines segment that was primarily related to accident years 2017-2020 for the general liability and excess casualty lines of business. The unfavorable reserve development in the E&S segment for this quarter includes $9.7 million that will be subject to the combined loss portfolio transfer and adverse development cover reinsurance transaction ("E&S LPT and ADC"). The E&S LPT and ADC is effective January 1, 2024, but closed on July 2, 2024. As such, any applicable recoveries will be recognized in the third quarter of 2024. The Company experienced $721,000 of net favorable reserve development in the three months ended June 30, 2023 on the reserve for losses and loss adjustment expenses held at December 31, 2022 (excluding adverse prior year development on the commercial auto loss portfolio transfer subject to retroactive reinsurance accounting - see Loss Portfolio Transfer below). This reserve development included $118,000 of net adverse development in the Excess and Surplus Lines segment and $839,000 of net favorable development in the Specialty Admitted Insurance segment. The Company experienced $10.3 million of net adverse reserve development in the six months ended June 30, 2024 on the reserve for losses and loss adjustment expenses held at December 31, 2023 (excluding adverse prior year development on the commercial auto loss portfolio transfer subject to retroactive reinsurance accounting - see Loss Portfolio Transfer below). This reserve development included $10.7 million of net adverse development in the Excess and Surplus Lines segment and $442,000 of net favorable development in the Specialty Admitted Insurance segment. Reserve development in the E&S segment was primarily related to accident years 2017-2020 for the general liability and excess casualty lines of business. The unfavorable reserve development in the E&S segment includes $9.7 million that will be subject to the E&S LPT and ADC. The Company experienced $1.2 million of net favorable reserve development in the six months ended June 30, 2023 on the reserve for losses and loss adjustment expenses held at December 31, 2022 (excluding adverse prior year development on the commercial auto loss portfolio transfer subject to retroactive reinsurance accounting - see Loss Portfolio Transfer below). This reserve development included $206,000 of net favorable development in the Excess and Surplus Lines segment and $1.0 million of net favorable development in the Specialty Admitted Insurance segment. Loss Portfolio Transfers Loss portfolio transfers are a form of reinsurance utilized by the Company to transfer losses and loss adjustment expenses and associated risk of adverse development on covered subject business, as defined in the respective agreements, to an assuming reinsurer in exchange for a reinsurance premium. Loss portfolio transfers can bring economic finality (up to the limit of such loss portfolio transfer, if applicable) on the subject risks when they no longer meet the Company's appetite or are no longer aligned with the Company's risk management guidelines. Commercial Auto Loss Portfolio Transfer On September 27, 2021, James River Insurance Company and James River Casualty Company (together, “James River”) entered into a loss portfolio transfer transaction (the “Commercial Auto LPT”) with Aleka Insurance, Inc. (“Aleka”), a captive insurance company affiliate of Rasier LLC, to reinsure substantially all of the Excess and Surplus Lines segment's legacy portfolio of commercial auto policies previously issued to Rasier LLC and its affiliates (collectively, “Rasier”) for which James River is not otherwise indemnified by Rasier. The reinsurance coverage is structured to be fully collateralized, is not subject to an aggregate limit, and is subject to certain exclusions. Retroactive Reinsurance Accounting The Company periodically reevaluates the remaining reserves subject to the Commercial Auto LPT, and when recognized adverse prior year development on the subject business causes the cumulative amounts ceded under the loss portfolio transfer to exceed the consideration paid, the loss portfolio transfer moves into a gain position subject to retroactive reinsurance accounting under GAAP. Gains are deferred under retroactive reinsurance accounting and recognized in earnings in proportion to actual paid recoveries under the loss portfolio transfer using the recovery method. While the deferral of gains can introduce volatility in our results in the short-term, over the life of the contract, we would expect no economic impact to the Company as long as the counterparty performs under the contract. The impact of retroactive reinsurance accounting is not indicative of our current and ongoing operations. For the three and six months ended June 30, 2024, due to adverse paid and reported loss trends on the legacy Rasier business, the Company recognized adverse prior year development of $1.4 million and $1.9 million, respectively ($12.6 million and $53.6 million in the respective prior year periods), on the net reserves subject to the Commercial Auto LPT, resulting in corresponding additional amounts ceded under the Commercial Auto LPT. As a result, the cumulative amounts ceded under the Commercial Auto LPT exceed the consideration paid, putting the Commercial Auto LPT into a gain position. The Company has applied retroactive reinsurance accounting to the loss portfolio transfer. Retroactive reinsurance benefits of $5.1 million and $9.6 million for the three and six months ended June 30, 2024, respectively ($14.8 million and $44.1 million in the respective prior year periods), were recorded in losses and loss adjustment expenses on the Condensed Consolidated Statements of Income and Comprehensive Income (Loss) using the recovery method. The cumulative amounts ceded under the loss portfolio transfer were $458.1 million and $456.2 million as of June 30, 2024 and December 31, 2023, respectively. The deferred retroactive reinsurance gain related to the Commercial Auto LPT separately presented on the Company's Condensed Consolidated Balance Sheets was $13.0 million and $20.7 million at June 30, 2024 and December 31, 2023, respectively. |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income | 6 Months Ended |
Jun. 30, 2024 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive (Loss) Income | Other Comprehensive (Loss) Income The following table summarizes the components of other comprehensive (loss) income: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Unrealized (losses) gains arising during the period, before U.S. income taxes $ (3,784) $ (20,367) $ (13,934) $ 15,445 U.S. income taxes 795 3,637 2,926 (1,363) Unrealized (losses) gains arising during the period, net of U.S. income taxes (2,989) (16,730) (11,008) 14,082 Less reclassification adjustment: Net realized investment losses (798) (277) (1,109) (369) U.S. income taxes 168 4 233 6 Reclassification adjustment for investment losses realized in net income (630) (273) (876) (363) Other comprehensive (loss) income $ (2,359) $ (16,457) $ (10,132) $ 14,445 In addition to the $798,000 and $1.1 million of net realized investment losses on available-for-sale fixed maturities for the three and six months ended June 30, 2024 ($277,000 and $369,000 of net realized investment losses for the three and six months ended June 30, 2023 , respectively), the Company also recognized net realized and unrealized investment losses in the respective periods of $843,000 and $1.1 million on its investments in bank loan participations (net realized and unrealized investment gains of $1.6 million and $2.1 million in the respective prior year periods) and net realized and unrealized investment (losses) gains of $(664,000) and $4.5 million on its investments in equity securities ($81,000 and $(248,000) in the respective prior year periods). |
Contingent Liabilities
Contingent Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | Contingent Liabilities The Company is involved in various legal proceedings, including commercial matters and litigation regarding insurance claims which arise in the ordinary course of business, as well as the matters specifically discussed below. In addition, the Company is involved from time to time in legal actions which seek extra-contractual damages, punitive damages or penalties, including claims alleging bad faith in the handling of insurance claims. The Company believes that the outcome of such matters, individually and in the aggregate, is not reasonably likely to have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows. On July 9, 2021, a purported class action lawsuit was filed in the U.S. District Court, Eastern District of Virginia (the “Court”) by Employees’ Retirement Fund of the City of Fort Worth against James River Group Holdings, Ltd. and certain of its present and former officers (together, “Defendants”). On September 22, 2021, the Court entered an order appointing Employees’ Retirement Fund of the City of Fort Worth and the City of Miami General Employees’ and Sanitation Employees’ Retirement Trust as co-lead plaintiffs (together, “Plaintiffs”). Plaintiffs’ consolidated amended complaint was filed on November 19, 2021 (the “First Amended Complaint”). The Defendants filed a motion to dismiss the First Amended Complaint on January 18, 2022, Plaintiffs’ opposition thereto was filed on March 4, 2022, and the Defendants’ reply to the Plaintiffs’ opposition was filed on April 4, 2022. On August 25, 2022, Plaintiffs filed a motion for leave to file a second amended class action complaint (the “Second Amended Complaint”). On September 8 , 2022, the Defendants consented to the Plaintiffs’ motion to file the Second Amended Complaint, and filed a motion to dismiss the Second Amended Complaint on October 24, 2022 (the “Second MTD”). The Plaintiffs’ opposition to the Second MTD was filed on November 7, 2022, and the Defendant’s reply to the Plaintiffs’ opposition was filed on November 14, 2022. On August 28, 2023, the Court denied the Second MTD. The Second Amended Complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of a putative class of persons and entities that purchased the Company’s stock between February 22, 2019 and October 25, 2021, alleges that Defendants failed to make appropriate disclosures concerning the adequacy of reserves for policies that covered Rasier LLC, a subsidiary of Uber Technologies, Inc., and seeks unspecified damages, costs, attorneys’ fees and such other relief as the court may deem proper. The Company engaged in mediation in the fourth quarter of 2023 and on December 7, 2023, in connection with the mediation, the Company reached an agreement in principle to settle the action. On December 22, 2023, the parties submitted the stipulation of settlement to the Court for approval. The settlement provides for a full release of all defendants in connection with the allegations made and a settlement payment to the class of $30.0 million, inclusive of all Plaintiffs’ attorneys fees and expenses and settlement costs, all of which will be paid by the Company’s insurance carriers. On January 26, 2024 the Court issued an order granting preliminary approval of the settlement and on May 24, 2024 the Court issued an order granting final approval of the settlement, and no appeal was filed. This matter is now concluded. On November 13, 2023, a purported class action lawsuit was filed in the U.S. District Court, Southern District of New York, on behalf of Paul Glantz against James River Group Holdings, Ltd. and certain of its officers, asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. On January 12, 2024, both Mr. Glantz and Madhav Ghimire, another individual shareholder, filed an application with the court for appointment as Lead Plaintiff, and on January 26, 2024 Mr. Glantz filed a notice of non-opposition to Mr. Ghimire's competing motion for appointment as Lead Plaintiff. On March 25, 2024 the court entered an order appointing Mr. Ghimire as lead plaintiff. On May 24, 2024, Plaintiff filed its consolidated amended complaint alleging that he acquired the Company’s common stock at artificially inflated pricing between May 2, 2023 and November 7, 2023, inclusive, that the Company knew and/or recklessly disregarded that it had improperly accounted for reinsurance premiums and did not have effective internal control over financial reporting, and that as a result, he suffered unspecified damages, and seeking unspecified damages, costs, attorneys' fees and such other relief as the court may deem proper. On July 23, 2024 the Company filed a motion to dismiss the consolidated amended complaint. The Company believes that the claims are without merit and intends to vigorously defend this lawsuit. On March 11, 2024, the Company filed a complaint (the “Complaint”) in the Supreme Court of the State of New York, New York County, Commercial Division against Fleming Intermediate Holdings LLC (“Fleming”), a Cayman Islands limited liability company, relating to the previously announced Stock Purchase Agreement, dated as of November 8, 2023 (the “Stock Purchase Agreement”), pursuant to which Fleming agreed to purchase all of the outstanding common shares of JRG Re (the “Transaction”). The complaint alleges that Fleming breached the Stock Purchase Agreement by its refusal to close the Transaction on March 1, 2024 as required under the terms of the Stock Purchase Agreement, and seeks specific performance of Fleming’s obligation to complete the Transaction and an award of damages. The Company subsequently filed a motion for preliminary injunction to require Fleming to fulfill its contractual obligation to close the Transaction, and on April 6, 2024 the Court granted the Company’s motion and ordered Fleming to complete the Transaction on or prior to April 16, 2024. On April 8, 2024, Fleming filed a notice of appeal of the preliminary injunction, which is pending in the Supreme Court of the State of New York Appellate Division, First Department. The Transaction closed on April 16, 2024. On April 19, 2024, Fleming filed a motion to dismiss the Complaint. On May 9, 2024, the Company filed an amended complaint seeking, among other things, specific performance and damages suffered as a result of Fleming's breach of the Stock Purchase Agreement. On June 6, 2024, Fleming filed a motion to dismiss the amended complaint, on July 3, 2024 the Company filed an opposition to such motion to dismiss (the "MTD Opposition"), and on July 24, 2024 Fleming filed its reply to the MTD Opposition. On July 15, 2024, Fleming filed a complaint in the U.S. District Court, Southern District of New York against James River Group Holdings, Ltd. and certain of its officers. Refer to Note 15 for additional information. Amounts Recoverable from an Indemnifying Party and Reinsurer on Legacy Commercial Auto Book James River previously issued a set of commercial auto insurance contracts (the “Rasier Commercial Auto Policies”) to Rasier under which James River pays losses and loss adjustment expenses on the contracts. James River has indemnity agreements with Rasier (non-insurance entities) (collectively, the “Indemnity Agreements”) and is contractually entitled to reimbursement for the portion of the losses and loss adjustment expenses paid on behalf of Rasier under the Rasier Commercial Auto Policies and other expenses incurred by James River. On September 27, 2021, James River entered into the Commercial Auto LPT with Aleka to reinsure substantially all of the Rasier Commercial Auto Policies for which James River is not otherwise indemnified by Rasier under the Indemnity Agreements. Under the terms of the Commercial Auto LPT, effective as of July 1, 2021, James River ceded to Aleka approximately $345.1 million of commercial auto liabilities relating to Rasier Commercial Auto Policies written in the years 2013-2019, which amount constituted the reinsurance premium. Since inception, due to adverse paid and reported loss trends on the legacy Rasier business, the Company has recognized adverse prior year development of $113.0 million on the reserves subject to the Commercial Auto LPT, bringing the cumulative amount ceded under the Commercial Auto LPT to $458.1 million at June 30, 2024. Each of Rasier and Aleka are required to post collateral under the Indemnity Agreements and the Commercial Auto LPT, respectively: • Pursuant to the Indemnity Agreements, Rasier is required to post collateral equal to 102% of James River's estimate of the amounts that are recoverable or may be recoverable under the Indemnity Agreements, including, among other things, case loss and loss adjustment expense reserves, IBNR loss and loss adjustment expense reserves, extra contractual obligations and excess policy limits liabilities. The collateral is provided through a collateral trust arrangement (the “Indemnity Trust”) in favor of James River by Aleka. In connection with the execution of the Commercial Auto LPT, James River returned $691.3 million to the Indemnity Trust, representing the remaining balance of the amount withdrawn in October 2019, as was permitted under the indemnification agreements with Rasier and the associated trust agreement. At June 30, 2024, the balance in the Indemnity Trust was $99.6 million, and, together with the balance of the Loss Fund Trust (as defined below) attributable to the Indemnity Agreements as described below, the total balance of collateral securing Rasier’s obligations under the Indemnity Agreements was $117.0 million. • Pursuant to the Commercial Auto LPT, Aleka is required to post collateral equal to 102% of James River's estimate of Aleka's obligations under the Commercial Auto LPT, calculated in accordance with standard actuarial principles and based on reserves recorded in the Company’s statutory financial statements. The collateral is provided through a collateral trust arrangement (the “LPT Trust”) established in favor of James River by Aleka. At June 30, 2024, the balance in the LPT Trust was $45.4 million, and, together with the balance of the Loss Fund Trust (as defined below) attributable to the Commercial Auto LPT as described below, the total balance of collateral securing Aleka’s obligations under the Commercial Auto LPT was $53.1 million. At June 30, 2024, the total reinsurance recoverables under the Commercial Auto LPT was $52.4 million. In connection with the execution of the Commercial Auto LPT, James River and Aleka entered into an administrative services agreement (the “Administrative Services Agreement”) with a third party claims administrator (the “Administrator”) pursuant to which the Administrator handles the claims on the Rasier Commercial Auto Policies for the remaining life of those claims. The claims paid by the Administrator are reimbursable by James River, and pursuant to the Administrative Services Agreement, James River established a loss fund trust account for the benefit of the Administrator (the “Loss Fund Trust”) to collateralize its claims payment reimbursement obligations. James River funds the Loss Fund Trust using funds withdrawn from the Indemnity Trust, funds withdrawn from the LPT Trust, and its own funds, in each case in an amount equal to the pro rata portion of the required Loss Fund Trust balance attributable to the Indemnity Agreements, the Commercial Auto LPT and James River’s existing third party reinsurance agreements, respectively. At June 30, 2024, the balance in the Loss Fund Trust was $28.0 million, including $17.4 million representing collateral supporting Rasier’s obligations under the Indemnity Agreements and $7.7 million representing collateral supporting Aleka’s obligations under the Commercial Auto LPT. Funds posted to the Loss Fund Trust are classified as restricted cash equivalents on the Company's balance sheets. While the Commercial Auto LPT brings economic finality to substantially all of the Rasier Commercial Auto Policies, the Company has credit exposure to Rasier and Aleka under the Indemnity Agreements and the Commercial Auto LPT if the estimated losses and expenses of the Rasier Commercial Auto Policies grow at a faster pace than the growth in the collateral balances. In addition, the Company has credit exposure if its estimates of future losses and loss adjustment expenses and other amounts recoverable under the Indemnity Agreements and the Commercial Auto LPT, which are the basis for establishing the collateral balances, are lower than actual amounts paid or payable. The amount of our credit exposure in any of these instances could be material. To mitigate these risks, the Company closely and frequently monitors its exposure compared to the collateral held, and requests additional collateral in accordance with the terms of the Commercial Auto LPT and Indemnity Agreements when its analysis indicates that it has uncollateralized exposure. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's continuing operations are comprised of three reportable segments, two of which are separately managed business units and the third (“Corporate and Other”) includes the Company’s remaining operations. Prior to entering into a definitive agreement to sell JRG Re on November 8, 2023, JRG Re was considered a reportable segment (the “Casualty Reinsurance” segment). After entering into the agreement to sell JRG Re, the Company no longer considered Casualty Reinsurance to be a reportable segment, but instead it is reported as discontinued operations. The segment information below excludes discontinued operations for all periods presented. Segment profit (loss) is measured by underwriting profit (loss), which is generally defined as net earned premiums and gross fee income (in specific instances when the Company is not retaining insurance risk) in “other income” in the Condensed Consolidated Statements of Income and Comprehensive Income less loss and loss adjustment expenses on business not subject to retroactive reinsurance accounting for loss portfolio transfers (see Loss Portfolio Transfer in Note 6 - Reserve for Losses and Loss Adjustment Expenses ) and other operating expenses of the operating segments. Gross fee income of $1.3 million and $2.6 million for the Specialty Admitted Insurance segment was included in other income and in underwriting profit (loss) for the three and six months ended June 30, 2024, respectively ($1.3 million and $2.4 million in the respective prior year periods) . Segment results are reported prior to the effects of intercompany reinsurance agreements among the Company’s insurance subsidiaries. The following table summarizes the Company’s segment results: Excess and Specialty Corporate Total (in thousands) Three Months Ended June 30, 2024 Gross written premiums $ 292,836 $ 119,411 $ — $ 412,247 Net earned premiums 140,447 22,746 — 163,193 Underwriting profit of operating segments 6,427 3,416 — 9,843 Net investment income 20,255 4,097 579 24,931 Interest expense — — 6,344 6,344 Segment revenues 159,572 28,055 662 188,289 Segment goodwill 181,831 — — 181,831 Segment assets 3,211,050 1,385,738 141,418 4,738,206 Three Months Ended June 30, 2023 Gross written premiums $ 286,126 $ 136,924 $ — $ 423,050 Net earned premiums 149,611 23,858 — 173,469 Underwriting profit of operating segments 10,042 384 — 10,426 Net investment income 14,903 3,173 158 18,234 Interest expense — — 5,997 5,997 Segment revenues 166,130 28,330 322 194,782 Segment goodwill 181,831 — — 181,831 Segment assets 2,880,824 1,381,877 87,541 4,350,242 Six Months Ended June 30, 2024 Gross written premiums $ 506,527 $ 236,530 $ — $ 743,057 Net earned premiums 286,070 48,814 — 334,884 Underwriting profit of operating segments 24,918 4,202 — 29,120 Net investment income 38,681 8,083 799 47,563 Interest expense — — 12,829 12,829 Segment revenues 328,493 59,591 1,332 389,416 Segment goodwill 181,831 — — 181,831 Segment assets 3,211,050 1,385,738 141,418 4,738,206 Six Months Ended June 30, 2023 Gross written premiums $ 515,029 $ 261,475 $ — $ 776,504 Net earned premiums 298,040 44,339 — 342,379 Underwriting profit (loss) of operating segments 27,107 (85) — 27,022 Net investment income 29,956 6,158 545 36,659 Interest expense — — 11,580 11,580 Segment revenues 329,850 52,840 896 383,586 Segment goodwill 181,831 — — 181,831 Segment assets 2,880,824 1,381,877 87,541 4,350,242 The following table reconciles the underwriting profit (loss) of the operating segments by individual segment to consolidated income from continuing operations before income taxes: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Underwriting profit (loss) of the operating segments: Excess and Surplus Lines $ 6,427 $ 10,042 $ 24,918 $ 27,107 Specialty Admitted Insurance 3,416 384 4,202 (85) Total underwriting profit of operating segments 9,843 10,426 29,120 27,022 Other operating expenses of the Corporate and Other segment (8,624) (8,548) (19,761) (17,830) Underwriting profit 1,219 1,878 9,359 9,192 Losses and loss adjustment expenses - retroactive reinsurance 3,684 2,252 7,686 (9,448) Net investment income 24,931 18,234 47,563 36,659 Net realized and unrealized (losses) gains on investments (2,305) 1,615 2,278 1,775 Other income and expenses (905) (53) (726) (468) Interest expense (6,344) (5,997) (12,829) (11,580) Amortization of intangible assets (91) (91) (182) (182) Income from continuing operations before income taxes $ 20,189 $ 17,838 $ 53,149 $ 25,948 |
Other Operating Expenses and Ot
Other Operating Expenses and Other Expenses | 6 Months Ended |
Jun. 30, 2024 | |
Other Operating Expenses and Other Expenses [Abstract] | |
Other Operating Expenses and Other Expenses | Other Operating Expenses and Other Expenses Other operating expenses consist of the following: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Amortization of policy acquisition costs $ 13,765 $ 19,930 $ 31,805 $ 36,759 Other underwriting expenses of the operating segments 21,707 21,715 43,340 43,640 Other operating expenses of the Corporate and Other segment 8,624 8,548 19,761 17,830 Total $ 44,096 $ 50,193 $ 94,906 $ 98,229 Other expenses of $2.1 million and $2.8 million for the three and six months ended June 30, 2024 , respectively ($223,000 and $826,000 in the respective prior year periods), primarily consist of certain nonoperating expenses including legal and other professional fees and other expenses related to various strategic initiatives. |
Senior Debt
Senior Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Senior Debt | Senior Debt On April 16, 2024, the Company amended a senior revolving credit facility (as amended or amended and restated, the "2013 Facility”) in connection with the closing of the sale of JRG Re by the Company to (i) release JRG Re as a borrower and release all collateral pledged by JRG Re thereunder, and (ii) decrease a secured revolving facility commitment to $45.0 million. At June 30, 2024, the 2013 Facility is comprised of the following: • A $212.5 million unsecured revolving facility to meet the working capital needs of the Company. At June 30, 2024 and December 31, 2023, the Company had a drawn balance of $185.8 million outstanding on the unsecured revolver. • A $45.0 million secured revolving facility to issue letters of credit for the benefit of third-party reinsureds. At June 30, 2024 , the Company had $36.0 million of letters of credit issued under the secured facility, all of which are collateralized by a back-to-back letter of credit issued by Comerica Bank on behalf of JRG Re. The 2013 Facility contains certain financial and other covenants (including minimum net worth, maximum ratio of total adjusted debt outstanding to total capitalization, and financial strength ratings) with which the Company was in compliance at June 30, 2024. Also in connection with the closing of the sale of JRG Re by the Company, on April 16, 2024, t he Company amended a credit agreement (the "2017 Facility") to (i) release JRG Re as a borrower and release all collateral pledged by JRG Re thereunder, (ii) increase the applicable interest rates, (iii) eliminate the letter of credit portion of the facility, and (iv) to build in an automatic decrease of the facility amount by the amount of each letter of credit outstanding under the 2017 Facility as of the date of the amendment with effect from the date each such letter of credit is cancelled. The 2017 Facility provides the Company with a revolving line of credit which may be used for loans and letters of credit made or issued, at the borrowers' option, on a secured or unsecured basis. In the three months ended June 30, 2024, the Company repaid $21.5 million of unsecured loans under the facility. At June 30, 2024, there were no loans outstanding and $24.7 million of letters of credit were issued under the facility, all of which are collateralized by a back-to-back letter of credit issued by Comerica Bank on behalf of JRG Re. The 2017 Facility contains certain financial and other covenants with which the Company was in compliance at June 30, 2024 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Three levels of inputs are used to measure fair value of financial instruments: (1) Level 1: quoted price (unadjusted) in active markets for identical assets, (2) Level 2: inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument, and (3) Level 3: inputs to the valuation methodology are unobservable for the asset or liability. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair values of fixed maturity securities, equity securities, and bank loan participations have been determined using fair value prices provided by the Company’s investment accounting services provider or investment managers, who utilize internationally recognized independent pricing services. The prices provided by the independent pricing services are generally based on observable market data in active markets ( e.g. broker quotes and prices observed for comparable securities). Values for U.S. Treasury and publicly-traded equity securities are generally based on Level 1 inputs which use the market approach valuation technique. The values for all other fixed maturity securities (including state and municipal securities and obligations of U.S. government corporations and agencies) and bank loan participations generally incorporate significant Level 2 inputs, and in some cases, Level 3 inputs, using the market approach and income approach valuation techniques. There have been no changes in the Company’s use of valuation techniques since December 31, 2022. The Company reviews fair value prices provided by its outside investment accounting service provider or investment managers for reasonableness by comparing the fair values provided by the managers to those provided by its investment custodian. The Company also reviews and monitors changes in unrealized gains and losses. The Company has not historically adjusted security prices. The Company obtains an understanding of the methods, models and inputs used by the investment managers and independent pricing services, and controls are in place to validate that prices provided represent fair values. The Company’s control process includes, but is not limited to, initial and ongoing evaluation of the methodologies used, a review of specific securities and an assessment for proper classification within the fair value hierarchy, and obtaining and reviewing internal control reports for our investment manager that obtains fair values from independent pricing services. Assets measured at fair value on a recurring basis as of June 30, 2024 are summarized below: Fair Value Measurements Using Quoted Prices Significant Significant Total (in thousands) Fixed maturity securities, available-for-sale: State and municipal $ — $ 202,925 $ — $ 202,925 Residential mortgage-backed — 285,283 — 285,283 Corporate — 405,316 — 405,316 Commercial mortgage and asset-backed — 198,304 — 198,304 U.S. Treasury securities and obligations guaranteed by the U.S. government 22,647 — — 22,647 Total fixed maturity securities, available-for-sale $ 22,647 $ 1,091,828 $ — $ 1,114,475 Equity securities: Preferred stock — 74,546 — 74,546 Common stock 51,540 2,473 5 54,018 Total equity securities $ 51,540 $ 77,019 $ 5 $ 128,564 Bank loan participations $ — $ 165,280 $ — $ 165,280 Short-term investments $ — $ 45,977 $ — $ 45,977 Assets measured at fair value on a recurring basis as of December 31, 2023 are summarized below: Fair Value Measurements Using Quoted Prices Significant Significant Total (in thousands) Fixed maturity securities, available-for-sale: State and municipal $ — $ 248,837 $ — $ 248,837 Residential mortgage-backed — 317,928 — 317,928 Corporate — 505,728 — 505,728 Commercial mortgage and asset-backed — 222,853 — 222,853 U.S. Treasury securities and obligations guaranteed by the U.S. government 29,130 — — 29,130 Total fixed maturity securities, available-for-sale $ 29,130 $ 1,295,346 $ — $ 1,324,476 Equity securities: Preferred stock — 69,310 — 69,310 Common stock 48,370 2,254 11 50,635 Total equity securities $ 48,370 $ 71,564 $ 11 $ 119,945 Bank loan participations $ — $ 156,169 $ — $ 156,169 Short-term investments $ — $ 72,137 $ — $ 72,137 A reconciliation of the beginning and ending balances of available-for-sale fixed maturity securities, equity securities, and bank loan participations measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is shown below: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) (in thousands) Beginning balance $ 17 $ 7 $ 11 $ 7 Transfers out of Level 3 — — — — Transfers in to Level 3 — — — — Purchases — — — — Sales — — — — Maturities, calls and paydowns — — — — Amortization of discount — — — — Total gains or losses (realized/unrealized): Included in earnings (12) 9 (6) 9 Included in other comprehensive income — — — — Ending balance $ 5 $ 16 $ 5 $ 16 The Company held one equity security at December 31, 2023 and June 30, 2024 for which the fair value was determined using significant unobservable inputs (Level 3). The fair value of $5,000 at June 30, 2024 for the equity security was obtained from our asset manager and was derived from an internal model. The Company held one equity security at December 31, 2022 and June 30, 2023 for which the fair value was determined using significant unobservable inputs (Level 3). The fair value of $16,000 at June 30, 2023 for the equity security was obtained from our asset manager and was derived from an internal model. Transfers out of Level 3 occur when the Company is able to obtain reliable prices from pricing vendors for securities for which the Company was previously unable to obtain reliable prices. Transfers in to Level 3 occur when the Company is unable to obtain reliable prices for securities from pricing vendors and instead must use broker price quotes to value the securities. There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2024 or 2023. The Company recognizes transfers between levels at the beginning of the reporting period. In the determination of the fair value for bank loan participations and certain high yield bonds, the Company’s investment manager endeavors to obtain data from multiple external pricing sources. External pricing sources may include brokers, dealers and price data vendors that provide a composite price based on prices from multiple dealers. Such external pricing sources typically provide valuations for normal institutional size trading units of such securities using methods based on market transactions for comparable securities, and various relationships between securities, as generally recognized by institutional dealers. For investments in which the investment manager determines that only one external pricing source is appropriate or if only one external price is available, the relevant investment is generally recorded at fair value based on such price. Investments for which external sources are not available or are determined by the investment manager not to be representative of fair value are recorded at fair value as determined by the Company, with input from its investment managers and valuation specialists as considered necessary. In determining the fair value of such investments, the Company considers one or more of the following factors: type of security held, convertibility or exchangeability of the security, redeemability of the security (including the timing of redemptions), application of industry accepted valuation models, recent trading activity, liquidity, estimates of liquidation value, purchase cost, and prices received for securities with similar terms of the same issuer or similar issuers. At June 30, 2024 and December 31, 2023, there were no investments for which external sources were unavailable to determine fair value. The carrying values and fair values of financial instruments are summarized below: June 30, 2024 December 31, 2023 Carrying Fair Value Carrying Fair Value (in thousands) Assets Fixed maturity securities, available-for-sale $ 1,114,475 $ 1,114,475 $ 1,324,476 $ 1,324,476 Equity securities 128,564 128,564 119,945 119,945 Bank loan participations 165,280 165,280 156,169 156,169 Cash and cash equivalents 672,523 672,523 274,298 274,298 Restricted cash equivalents 27,963 27,963 72,449 72,449 Short-term investments 45,977 45,977 72,137 72,137 Other invested assets – notes receivable 14,180 13,041 12,174 11,702 Liabilities Senior debt 200,800 207,465 222,300 233,408 Junior subordinated debt 104,055 132,657 104,055 138,264 The fair values of fixed maturity securities, equity securities, and bank loan participations have been determined using quoted market prices for securities traded in the public market or prices using bid or closing prices for securities not traded in the public marketplace. The fair values of cash and cash equivalents and short-term investments approximate their carrying values due to their short-term maturity. The fair values of other invested assets-notes receivable, senior debt, and junior subordinated debt at June 30, 2024 and December 31, 2023 were determined by calculating the present value of expected future cash flows under the terms of the note agreements or debt agreements, as applicable, discounted at an estimated market rate of interest at June 30, 2024 and December 31, 2023, respectively. The Company also utilized an internally developed valuation model based on the spread of a comparable market index to determine the fair value of certain other invested assets-notes receivable at June 30, 2024 and December 31, 2023. The fair values of senior debt, junior subordinated debt, and investments in notes receivable, classified in other invested assets, at June 30, 2024 and December 31, 2023 were determined using inputs to the valuation methodology that are unobservable (Level 3). |
Series A Preferred Shares
Series A Preferred Shares | 6 Months Ended |
Jun. 30, 2024 | |
Temporary Equity [Abstract] | |
Series A Preferred Shares | Series A Preferred Shares On February 24, 2022, the Company entered into an Investment Agreement with GPC Partners Investments (Thames) LP (“GPC Partners”), an affiliate of Gallatin Point Capital LLC, relating to the issuance and sale of 150,000 7% Series A Perpetual Cumulative Convertible Preferred Shares, par value $0.00125 per share (the “Series A Preferred Shares”), for an aggregate purchase price of $150.0 million, or $1,000 per share, in a private placement. The transaction closed on March 1, 2022 (the “Series A Closing Date”). The Series A Preferred Shares rank senior to our common shares with respect to dividend rights and rights on the distribution of assets on any liquidation, dissolution or winding up of the affairs of the Company, upon which the holders of Series A Preferred Shares would receive the greater of the $1,000 liquidation preference per share (the “Liquidation Preference”) plus accrued and unpaid dividends, or the amount they would have received if they had converted all of their Series A Preferred Shares to common shares immediately before such liquidation, dissolution or winding up. Holders of the Series A Preferred Shares are entitled to a dividend at the initial rate of 7% of the Liquidation Preference per annum, paid in cash, in-kind in common shares or in Series A Preferred Shares, at the Company's election. On the five-year anniversary of the Series A Closing Date, and each five-year anniversary thereafter, the dividend rate will reset to a rate equal to the five-year U.S. treasury rate plus 5.2%. Dividends accrue and are payable quarterly. Cash dividends of $5.3 million were paid in the six months ended June 30, 2024 including cash dividends paid in January and April for the three month periods ended December 31, 2023 and March 31, 2024. Cash dividends of $2.6 million for the second quarter of 2024 were paid on July 1, 2024. In the six months ended June 30, 2023, cash dividends of $7.9 million were paid including cash dividends paid in January, March, and June for the three month periods ended December 31, 2022, March 31, 2023, and June 30, 2023, respectively. The Series A Preferred Shares are convertible at the option of the holders thereof at any time into common shares at an initial conversion price of $26.5950, making the Series A Preferred Shares convertible into 5,640,158 common shares. The conversion price is subject to customary anti-dilution adjustments, including cash dividends on the common shares above specified levels, as well as certain adjustments in case of net adverse reserve developments in excess of a threshold over a period of time. The measurement period for the adverse reserve development anti-dilution adjustment commenced with the quarter beginning January 1, 2022 and ends with the quarter ending December 31, 2025. As of June 30, 2024, net adverse reserve development exceeded the threshold. If net adverse reserve development exceeds the threshold at the conclusion of the measurement period (or upon a mandatory or optional conversion, if earlier), the conversion price will be adjusted pursuant to the Certificate of Designations, subject to a floor conversion price of $21.902, and the adjusted conversion price will become effective after the filing of the Company's financial statements for the period ending December 31, 2025 (or immediately after the close of business on the date of the public filing of the Company's financial statements for the most recent quarterly period preceding a mandatory or optional conversion, if earlier). None of the other triggers that would result in additional adjustments to the conversion price have been met at June 30, 2024. The Certificate of Designations setting forth the terms of the Series A Preferred Shares limits the Company's ability to pay dividends to its common shareholders. If the Company pays cash dividends of more than $0.05 per common share per quarter, without the consent of at least the majority of the Series A Preferred Shares then outstanding, the Company will be required to reduce the conversion price of the Series A Preferred Shares. Additionally, the payment of cash dividends in excess of $0.10 per common share per quarter is not permitted if the dividends on the Series A Preferred Shares for that quarter are not paid in cash, unless the Company’s U.S.-based insurance subsidiaries and direct Bermuda-based insurance subsidiary satisfy certain capital requirements. Share dividends payable on the common shares to the Company's shareholders also trigger a reduction of the conversion price applicable to the Series A Preferred Shares. At any time on or after the two year anniversary of the Series A Closing Date, if the volume-weighted average price (“VWAP”) per common share is greater than 130% of the then-applicable conversion price for at least twenty consecutive trading days, the Company will be able to elect to convert (a “Mandatory Conversion”) all of the outstanding Series A Preferred Shares into common shares. In the case of a Mandatory Conversion, each Series A Preferred Share then outstanding will be converted into (i) the number of common shares equal to the quotient of (A) the sum of the Liquidation Preference and the accrued and unpaid dividends with respect to such Series A Preferred Share to be converted divided by (B) the conversion price of such share in effect as of the date of the Mandatory Conversion plus (ii) cash in lieu of fractional shares. Upon any Mandatory Conversion on or before the five-year anniversary of the Series A Closing Date, all dividends that would have accrued from the date of the Mandatory Conversion to the later of the five-year anniversary of the Series A Closing Date or the last day of the eighth quarter following the date of the Mandatory Conversion, the last eight quarters of which will be discounted to present value using a discount rate of 3.5% per annum, and will be immediately payable in common shares, valued at the average of the daily VWAP of the Company’s common shares during the five (5) trading days immediately preceding the Mandatory Conversion. The holders of the Series A Preferred Shares may require the Company to repurchase their shares upon the occurrence of certain change of control events. Upon the occurrence of a Fundamental Change (as defined in the Certificate of Designations designating the Series A Preferred Shares), each holder of outstanding Series A Preferred Shares will be permitted to, at its election, (i) effective as of immediately prior to the Fundamental Change, convert all or a portion of its Series A Preferred Shares into common shares, or (ii) require the Company to repurchase any or all of such holder’s Series A Preferred Shares at a purchase price per Series A Preferred Share equal to the Liquidation Preference of such Series A Preferred Share plus accrued and unpaid dividends plus, if the Fundamental Change repurchase occurs prior to the five-year anniversary of the Series A Closing Date, all dividends that would have accrued up to such five-year anniversary, but that have not been paid. The repurchase price will be payable in cash. Because the Company may be required to repurchase all or a portion of the Series A Preferred Shares at the option of the holder upon the occurrence of certain change of control events, the Series A Preferred Shares have been classified as mezzanine equity in the Company's condensed consolidated balance sheets and are recognized at fair value of $150.0 million (the proceeds on the date of issuance) less issuance costs of $5.1 million, resulting in a carrying value of $144.9 million. Under the terms of the Investment Agreement, GPC Partners has the right to designate one member of the Board (the “Series A Designee”). GPC Partners has designated Matthew Botein as the Series A Designee and, accordingly, the Board approved the appointment of Mr. Botein to serve as a Class I director with a term expiring at the 2024 annual meeting of the Company’s shareholders. |
Capital Stock and Equity Awards
Capital Stock and Equity Awards | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock and Equity Awards | Capital Stock and Equity Awards Common Shares Total common shares outstanding increased from 37,641,563 at December 31, 2023 to 37,825,767 at June 30, 2024, reflecting 184,204 common shares issued in the six months ended June 30, 2024 related to vesting of RSUs. Dividends The Company declared the following dividends on common shares during the first six months of 2024 and 2023: Date of Declaration Dividend per Common Share Payable to Shareholders of Record on Payment Date Total Amount 2024 February 15, 2024 $ 0.05 March 11, 2024 March 29, 2024 $ 1,940,410 April 25, 2024 $ 0.05 June 10, 2024 June 28,2024 1,938,439 $ 0.10 $ 3,878,849 2023 February 16, 2023 $ 0.05 March 13, 2023 March 31, 2023 $ 1,921,802 April 27, 2023 $ 0.05 June 12, 2023 June 30, 2023 $ 1,921,040 $ 0.10 $ 3,842,842 Included in the total dividends for the six months ended June 30, 2024 and 2023 are $96,000 and $81,000, respectively, of dividend equivalents on unvested RSUs. The balance of dividends payable on unvested RSUs was $221,000 at June 30, 2024 and $255,000 at December 31, 2023. Equity Incentive Plans The Company’s shareholders have approved various equity incentive plans, including the 2014 Long Term Incentive Plan (“2014 LTIP”) and the 2014 Non-Employee Director Incentive Plan (“2014 Director Plan”) (collectively, the “Plans”). All awards issued under the Plans are issued at the discretion of the Board of Directors. Employees are eligible to receive non-qualified stock options, incentive stock options, share appreciation rights, performance shares, restricted shares, RSUs, and other awards under the 2014 LTIP. The maximum number of shares available for issuance under the 2014 LTIP is 4,982,650, and at June 30, 2024, 1,166,127 shares are available for grant. On July 26, 2022, the Board of Directors of the Company approved a new long-term incentive plan (the “LTI Plan”) under the 2014 LTIP. The LTI Plan is designed to align compensation of designated senior officers of the Company with Company performance and shareholder interests over the long-term. Awards under the LTI Plan are made in the form of performance restricted share units (a “PRSU”) and service based restricted share units (RSUs). Each PRSU represents a contingent right to receive one Company common share based upon the level of achievement of certain performance metrics during the performance period, with payout for achievement of threshold, target and maximum performance levels to be set at 50%, 100% and 200% of the target number of PRSUs, respectively. The PRSUs awarded in the first quarter of 2023 have a performance period of January 1, 2023 through December 31, 2025. The PRSUs awarded in the first quarter of 2024 have a performance period of January 1, 2024 through December 31, 2026. Non-employee directors of the Company are eligible to receive non-qualified stock options, share appreciation rights, performance shares, restricted shares, RSUs, and other awards under the 2014 Director Plan. The maximum number of shares available for issuance under the 2014 Director Plan is 150,000, and at June 30, 2024, 36,387 shares are available for grant. Generally, awards issued under the 2014 LTIP and 2014 Director Plan vest immediately in the event that an award recipient is terminated without Cause (as defined in the applicable plans), and in the case of the 2014 LTIP for Good Reason (as defined in the applicable plans), at any time following a Change in Control (as defined in the applicable plans). Options The following table summarizes option activity: Six Months Ended June 30, 2024 2023 Shares Weighted- Shares Weighted- Outstanding: Beginning of period 74,390 $ 42.17 287,974 $ 35.26 Granted — $ — — $ — Exercised — $ — — $ — Forfeited — $ — (45,106) $ 34.92 Lapsed (74,390) $ 42.17 (164,548) $ 32.07 End of period — $ — 78,320 $ 42.17 Exercisable, end of period — $ — 78,320 $ 42.17 The options outstanding at December 31, 2023 lapsed in the six months ended June 30, 2024. At June 30, 2024, no options remain outstanding. The following table summarizes RSU activity: Six Months Ended June 30, 2024 2023 Shares Weighted- Shares Weighted- Unvested, beginning of period 751,254 $ 23.48 665,458 $ 25.98 Granted 537,060 $ 9.76 363,484 $ 24.83 Vested (268,993) $ 25.11 (212,128) $ 28.93 Forfeited (76,305) $ 15.56 (15,233) $ 23.10 Unvested, end of period 943,016 $ 15.84 801,581 $ 24.73 Outstanding RSUs granted to employees generally vest ratably over a three year vesting period in the case of time-vest RSUs and cliff vest at the end of a three-year performance period in the case of PRSUs. RSUs granted to non-employee directors generally have a one year vesting period. The holders of RSUs are entitled to dividend equivalents. The dividend equivalents are settled in cash at the same time that the underlying RSUs vest and are subject to the same risk of forfeiture as the underlying shares. The fair value of the RSUs granted is generally based on the market price of the underlying shares at the date of grant. The RSUs granted in 2024 and 2023 include 231,492 and 91,818 PRSU awards, respectively. The number of PRSUs is based upon the probable outcome of performance conditions. Compensation Expense Share based compensation expense is recognized on a straight-line basis over the vesting period. The amount of expense and related tax benefit is summarized below: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Share based compensation expense $ 1,553 $ 2,316 $ 4,228 $ 5,008 U.S. tax benefit on share based compensation expense 293 427 790 943 At June 30, 2024, the Company had $10.0 million of unrecognized share based compensation expense expected to be charged to earnings over a weighted-average period of 1.9 years. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 25, 2024, the Board of Directors declared a cash dividend of $0.05 per common share. The dividend is payable on September 30, 2024 to shareholders of record on September 16, 2024. On July 25, 2024, the Board of Directors declared a dividend in the aggregate amount of $2.6 million on the Series A Preferred Shares. The dividend will be payable in cash on September 30, 2024 to shareholders of record on September 15, 2024. On July 2, 2024, James River Insurance Company (“JRIC”) and James River Casualty Company (together with JRIC, the “Ceding Companies”), two of the Company’s principal operating subsidiaries, entered into a Combined Loss Portfolio Transfer and Adverse Development Cover Reinsurance Contract (the “LPT-ADC Agreement”) with State National Insurance Company, Inc. (“State National”). The transaction closed upon signing. The LPT-ADC Agreement is effective January 1, 2024 (the “Effective Date”) and applies to the Ceding Companies’ Excess & Surplus Lines segment portfolio losses attaching to premium earned during 2010-2023 (both years inclusive), excluding, among others, losses related to commercial auto policies issued to a former large insured or its affiliates (the “Subject Business”). Pursuant to the LPT-ADC Agreement, (a) State National will reinsure 85% of losses paid on and after the Effective Date in respect of the Subject Business in excess of $716.6 million up to an aggregate limit of $467.1 million (with State National’s share of the aggregate limit being $397.0 million) in exchange for a reinsurance premium paid by the Ceding Companies equal to $313.2 million, (b) the Ceding Companies will continue to manage claims and to manage and collect the benefit of other existing third-party reinsurance on the Subject Business, which third-party reinsurance shall inure to the benefit of the LPT-ADC Agreement, and (c) the Ceding Companies will be entitled to a profit commission of 50% of any favorable development on the business ceded to State National below 104.5% of carried reserves, which profit commission shall not exceed $87.0 million in total. On July 15, 2024, Fleming filed a lawsuit in the U.S. District Court, Southern District of New York against James River Group Holdings, Ltd. and certain of its officers, asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, common law fraud, and breaches of contract, and seeks unspecified monetary damages, including compensatory, consequential and punitive damages, all associated with Fleming’s purchase of JRG Re pursuant to the Stock Purchase Agreement. The Company expects to file a motion to dismiss the complaint in September 2024. On July 29, 2024, Fleming filed a motion for a preliminary injunction and to amend its complaint to raise a dispute regarding Fleming’s claim that it is entitled to additional documents in connection with the purchase price adjustment process set forth under the Stock Purchase Agreement. The Company expects to oppose that motion, and the court has set a briefing schedule to be completed by August 19, 2024, with a hearing currently set for August 29, 2024. The Company believes Fleming's claims are without merit and intends to vigorously defend this lawsuit. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include the results of the Company and its subsidiaries from their respective dates of inception or acquisition, as applicable. Readers are urged to review the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 for a more complete description of the Company’s business and accounting policies. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results of operations for the full year. The consolidated balance sheet as of December 31, 2023 was derived from the Company’s audited annual consolidated financial statements. Intercompany transactions and balances have been eliminated. |
Held-for-Sale and Discontinued Operations | Held-for-Sale and Discontinued Operations |
Estimates and Assumptions | Estimates and Assumptions Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates. |
Variable Interest Entities | Variable Interest Entities Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (“VIE”). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose, and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. |
Income Tax Expense | Income Tax Expense |
Adopted and Prospective Accounting Standards | Adopted Accounting Standards There were no new accounting standards adopted in 2024 that materially impacted the Company's financial statements. Prospective Accounting Standards The guidance in ASU 2023-07 —Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures was designed to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Although the Company continues to evaluate the impact of adopting this new accounting standard, the amendments are disclosure-related and are not expected to have a material impact on our financial statements. The guidance in ASU 2023-09 —Income Taxes (Topic 740): Improvements to Income Tax Disclosures was designed to increase transparency about income tax information through improvements to the rate reconciliation and disclosure of income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024. Although the Company continues to evaluate the impact of adopting this new accounting standard, the amendments are disclosure-related and are not expected to have a material impact on our financial statements. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, JRG Re's Assets and Liabilities and Operating Results | JRG Re's assets and liabilities held for sale at December 31, 2023 were comprised of the following: December 31, (in thousands) Assets Invested assets: Fixed maturity securities, at fair value $ 532,242 Equity securities, at fair value 2,779 Total invested assets 535,021 Cash and cash equivalents 13,202 Accrued investment income 3,589 Premiums receivable and agents’ balances, net 68,441 Reinsurance recoverable on unpaid and paid losses, net 234,615 Deferred policy acquisition costs 4,986 Write down of JRG Re to fair value less cost to sell (80,400) Other assets 3,939 Assets held for sale $ 783,393 Liabilities Reserve for losses and loss adjustment expenses $ 441,666 Unearned premiums 17,223 Funds held 137,796 Deferred reinsurance gain 33,167 Accrued expenses 1,955 Other liabilities 9,690 Liabilities held for sale $ 641,497 The operating results of JRG Re reported in discontinued operations were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Revenues: Gross written premiums $ 780 $ 4,691 $ 1,137 $ 15,130 Ceded written premiums — (396) 877 (1,770) Net written premiums 780 4,295 2,014 13,360 Change in net unearned premiums 940 22,503 8,371 49,711 Net earned premiums 1,720 26,798 10,385 63,071 Net investment income 580 6,941 4,432 14,288 Net realized and unrealized (losses) gains on investments (7,229) 530 (9,472) 777 Total revenues (4,929) 34,269 5,345 78,136 Expenses: Losses and loss adjustment expenses (281) 20,868 13,157 49,775 Other operating expenses 913 8,672 5,039 20,895 Interest expense 89 944 732 1,977 Total expenses 721 30,484 18,928 72,647 (Loss) income from discontinued operations (5,650) 3,785 (13,583) 5,489 Loss on disposal of discontinued operations (1,203) — (1,375) — Total (loss) income from discontinued operations (6,853) 3,785 (14,958) 5,489 Cash flows from discontinued operations included in the consolidated statements of cash flows were as follows: Six Months Ended June 30, 2024 2023 (in thousands) Net cash used in operating activities of discontinued operations $ (25,115) $ (48,878) Net cash provided by investing activities of discontinued operations 63,104 59,555 Net cash provided by (used in) discontinued operations $ 37,989 $ 10,677 Interest paid by discontinued operations $ 1,388 $ 2,162 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments [Abstract] | |
Schedule of Available-for-Sale Investments | The Company’s available-for-sale fixed maturity securities are summarized as follows: Cost or Gross Gross Fair (in thousands) June 30, 2024 Fixed maturity securities: State and municipal $ 229,975 $ 632 $ (27,682) $ 202,925 Residential mortgage-backed 310,235 56 (25,008) 285,283 Corporate 435,227 721 (30,632) 405,316 Commercial mortgage and asset-backed 209,115 48 (10,859) 198,304 U.S. Treasury securities and obligations guaranteed by the U.S. government 23,408 — (761) 22,647 Total fixed maturity securities, available-for-sale $ 1,207,960 $ 1,457 $ (94,942) $ 1,114,475 December 31, 2023 Fixed maturity securities: State and municipal $ 273,462 $ 1,834 $ (26,459) $ 248,837 Residential mortgage-backed 336,064 1,243 (19,379) 317,928 Corporate 530,408 4,167 (28,847) 505,728 Commercial mortgage and asset-backed 235,302 78 (12,527) 222,853 U.S. Treasury securities and obligations guaranteed by the U.S. government 29,900 8 (778) 29,130 Total fixed maturity securities, available-for-sale $ 1,405,136 $ 7,330 $ (87,990) $ 1,324,476 |
Schedule of Available-for-Sale Investments by Contractual Maturity | The amortized cost and fair value of available-for-sale investments in fixed maturity securities at June 30, 2024 are summarized, by contractual maturity, as follows: Cost or Fair (in thousands) One year or less $ 19,661 $ 19,434 After one year through five years 308,786 299,268 After five years through ten years 230,535 204,929 After ten years 129,628 107,257 Residential mortgage-backed 310,235 285,283 Commercial mortgage and asset-backed 209,115 198,304 Total $ 1,207,960 $ 1,114,475 |
Schedule of Gross Unrealized Losses and Fair Value for Available-for-Sale Securities | The following table shows the Company’s gross unrealized losses and fair value for available-for-sale securities aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross (in thousands) June 30, 2024 Fixed maturity securities: State and municipal $ 24,864 $ (604) $ 157,731 $ (27,078) $ 182,595 $ (27,682) Residential mortgage-backed 74,310 (1,177) 200,429 (23,831) 274,739 (25,008) Corporate 70,309 (802) 274,982 (29,830) 345,291 (30,632) Commercial mortgage and asset-backed 14,119 (95) 142,399 (10,764) 156,518 (10,859) U.S. Treasury securities and obligations guaranteed by the U.S. government 1,497 (22) 21,151 (739) 22,648 (761) Total fixed maturity securities, available-for-sale $ 185,099 $ (2,700) $ 796,692 $ (92,242) $ 981,791 $ (94,942) December 31, 2023 Fixed maturity securities: State and municipal $ 30,196 $ (287) $ 168,517 $ (26,172) $ 198,713 $ (26,459) Residential mortgage-backed 68,497 (1,256) 145,954 (18,123) 214,451 (19,379) Corporate 55,970 (532) 290,308 (28,315) 346,278 (28,847) Commercial mortgage and asset-backed 24,048 (151) 182,295 (12,376) 206,343 (12,527) U.S. Treasury securities and obligations guaranteed by the U.S. government 7,961 (71) 19,889 (707) 27,850 (778) Total fixed maturity securities, available-for-sale $ 186,672 $ (2,297) $ 806,963 $ (85,693) $ 993,635 $ (87,990) |
Schedule of Net Unrealized Gains and Losses on Investments | The Company’s net realized and unrealized gains and losses on investments are summarized as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Fixed maturity securities: Gross realized gains $ 1,543 $ — $ 1,543 $ — Gross realized losses (2,341) (20) (2,652) (27) (798) (20) (1,109) (27) Bank loan participations: Gross realized gains 223 22 531 42 Gross realized losses (313) (2,286) (1,261) (2,709) Changes in fair values of bank loan participations (753) 3,823 (394) 4,733 (843) 1,559 (1,124) 2,066 Equity securities: Gross realized gains 423 350 1,547 931 Gross realized losses — — (177) (267) Changes in fair values of equity securities (1,087) (269) 3,141 (912) (664) 81 4,511 (248) Short-term investments and other: Gross realized gains — — — 2 Gross realized losses — (5) — (18) Changes in fair values of short-term investments and other — — — — — (5) — (16) Total $ (2,305) $ 1,615 $ 2,278 $ 1,775 |
Schedule of Net Realized Gains and Losses on Investments | The Company’s net realized and unrealized gains and losses on investments are summarized as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Fixed maturity securities: Gross realized gains $ 1,543 $ — $ 1,543 $ — Gross realized losses (2,341) (20) (2,652) (27) (798) (20) (1,109) (27) Bank loan participations: Gross realized gains 223 22 531 42 Gross realized losses (313) (2,286) (1,261) (2,709) Changes in fair values of bank loan participations (753) 3,823 (394) 4,733 (843) 1,559 (1,124) 2,066 Equity securities: Gross realized gains 423 350 1,547 931 Gross realized losses — — (177) (267) Changes in fair values of equity securities (1,087) (269) 3,141 (912) (664) 81 4,511 (248) Short-term investments and other: Gross realized gains — — — 2 Gross realized losses — (5) — (18) Changes in fair values of short-term investments and other — — — — — (5) — (16) Total $ (2,305) $ 1,615 $ 2,278 $ 1,775 |
Schedule of Other Invested Assets | The Company invests selectively in private debt and equity opportunities. These investments, which together comprise the Company’s other invested assets, are primarily focused in renewable energy, limited partnerships, and private debt. Carrying Value Investment Income June 30, December 31, Three Months Ended Six Months Ended 2024 2023 2024 2023 2024 2023 (in thousands) Renewable energy LLCs (a) Excess and Surplus Lines $ 8,003 $ 8,382 $ 948 $ (305) $ 662 $ 698 Corporate & Other — — 293 — 293 170 8,003 8,382 1,241 (305) 955 868 Renewable energy notes receivable ( b) Excess and Surplus Lines — 608 — 36 61 72 Corporate & Other — 761 — 45 77 90 — 1,369 — 81 138 162 Limited partnerships (c) Excess and Surplus Lines 12,987 11,914 517 370 402 621 Corporate & Other 664 664 — — — — 13,651 12,578 517 370 402 621 Private Debt (d) Excess and Surplus Lines 14,180 10,805 151 86 269 172 Corporate & Other — — — — — — 14,180 10,805 151 86 269 172 Total other invested assets Excess and Surplus Lines 35,170 31,709 1,616 187 1,394 1,563 Corporate & Other 664 1,425 293 45 370 260 $ 35,834 $ 33,134 $ 1,909 $ 232 $ 1,764 $ 1,823 (a) The Company's Excess and Surplus Lines segment owns equity interests ranging from 2.5% to 4.9% in various LLCs whose principal objective is capital appreciation and income generation from owning and operating renewable energy production facilities (wind and solar). The Company's former Non-Executive Chairman invested in certain of these LLCs. The equity method is used to account for the Company’s LLC investments. Income for the LLCs primarily reflects adjustments to the carrying values of investments in renewable energy projects to their determined fair values. The fair value adjustments are included in revenues for the LLCs. Expenses for the LLCs are not significant and are comprised of administrative and interest expenses. The Company received cash distributions from these investments totaling $161,000 and $24,000 in the six months ended June 30, 2024 and 2023, respectively. During the fourth quarter of 2022, the underlying projects in two of our LLCs were sold at the manager's discretion. In the three months ended March 31, 2023, the Company received additional proceeds from the sales of $1.2 million comprised of $984,000 in the Excess and Surplus Lines segment and $170,000 in the Corporate and Other segment. In the three months ended June 30, 2024, the Company received additional proceeds from the sale of $1.2 million comprised of $880,000 in the Excess and Surplus Lines segment and $293,000 in the Corporate and Other segment. (b) The Company's Excess and Surplus Lines and Corporate and Other segments invested in two notes receivable for renewable energy projects. Interest on the notes was fixed at 12%. During the six months ended June 30, 2024 , the Company received final principal repayments of $608,000 and $761,000 on the notes receivable in the Company's Excess and Surplus Lines segment and Corporate and Other segment, respectively. (c) The Company owns investments in limited partnerships that invest in concentrated portfolios including publicly-traded small cap equities, loans of middle market private equity sponsored companies, private equity general partnership interests, commercial mortgage-backed securities, specialty private credit, and tranches of distressed home loans. Income f rom the partnerships is recognized under the equity method of accounting. At June 30, 2024, the Company’s Excess and Surplus Lines segment has outstanding commitments to invest another $5.0 million in the limited partnerships. (d) The Company's Excess and Surplus Lines segment has invested in two notes receivable for structured private specialty credit. Interest on the notes, which mature in 2031, is fixed at 4.25% and 5.25%. At June 30, 2024, the Company’s Excess and Surplus Lines segment has outstanding commitments to invest another $2.3 million in these notes. Previously, the Company's Excess and Surplus Lines segment held $4.5 million of subordinated notes issued by a bank holding company for which the former Non-Executive Chairman of the Company was previously the Lead Independent Director and an investor. T he notes matured on August 12, 2023. Interest on the notes was fixed at 7.6% per annum. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Gross Carrying Amounts and Accumulated Amortization for Finite-Lived Intangible Assets | The gross carrying amounts and accumulated amortization for each major specifically identifiable intangible asset class were as follows: June 30, 2024 December 31, 2023 Life Gross Accumulated Gross Accumulated ($ in thousands) Intangible Assets Trademarks Indefinite $ 19,700 $ — $ 19,700 $ — Insurance licenses and authorities Indefinite 8,964 — 8,964 — Identifiable intangible assets not subject to amortization 28,664 — 28,664 — Broker relationships 24.6 11,611 7,644 11,611 7,462 Identifiable intangible assets subject to amortization 11,611 7,644 11,611 7,462 $ 40,275 $ 7,644 $ 40,275 $ 7,462 |
Schedule of Gross Carrying Amounts for Indefinite-Lived Intangible Assets | The gross carrying amounts and accumulated amortization for each major specifically identifiable intangible asset class were as follows: June 30, 2024 December 31, 2023 Life Gross Accumulated Gross Accumulated ($ in thousands) Intangible Assets Trademarks Indefinite $ 19,700 $ — $ 19,700 $ — Insurance licenses and authorities Indefinite 8,964 — 8,964 — Identifiable intangible assets not subject to amortization 28,664 — 28,664 — Broker relationships 24.6 11,611 7,644 11,611 7,462 Identifiable intangible assets subject to amortization 11,611 7,644 11,611 7,462 $ 40,275 $ 7,644 $ 40,275 $ 7,462 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share | The following represents a reconciliation of the numerator and denominator of the basic and diluted earnings per common share computations contained in the condensed consolidated financial statements: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands, except share and per share amounts) Net income from continuing operations $ 14,478 $ 12,129 $ 37,986 $ 17,431 Less: Dividends on Series A preferred shares (2,625) (2,625) (5,250) (5,250) Income from continuing operations available to common shareholders $ 11,853 $ 9,504 $ 32,736 $ 12,181 (Loss) income from discontinued operations (6,853) 3,785 (14,958) 5,489 Net income available to common shareholders $ 5,000 $ 13,289 $ 17,778 $ 17,670 Weighted average common shares outstanding: Basic 37,869,322 37,642,289 37,801,516 37,587,359 Dilutive potential common shares 168,071 216,458 6,961,047 235,046 Diluted 38,037,393 37,858,747 44,762,563 37,822,405 Net income (loss) per common share: Basic Continuing operations $ 0.31 $ 0.25 $ 0.87 $ 0.32 Discontinued operations $ (0.18) $ 0.10 $ (0.40) $ 0.15 $ 0.13 $ 0.35 $ 0.47 $ 0.47 Diluted Continuing operations $ 0.31 $ 0.25 $ 0.85 $ 0.32 Discontinued operations $ (0.18) $ 0.10 $ (0.33) $ 0.15 $ 0.13 $ 0.35 $ 0.52 $ 0.47 |
Reserve for Losses and Loss A_2
Reserve for Losses and Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
Schedule of Reconciliation of Beginning and Ending Reserve Balances for Losses and Loss Adjustment Expenses | The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses, net of reinsurance, to the gross amounts reported in the condensed consolidated balance sheets. Reinsurance recoverables on unpaid losses and loss adjustment expenses are presented gross of an allowance for credit losses on reinsurance balances of $744,000 at June 30, 2024, $660,000 at March 31, 2024 and December 31, 2023, $637,000 at June 30, 2023, $628,000 at March 31, 2023, and $580,000 at December 31, 2022. Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period $ 1,283,386 $ 1,121,532 $ 1,246,973 $ 1,080,766 Add: Incurred losses and loss adjustment expenses net of reinsurance: Current year 108,497 123,413 222,946 238,589 Prior years - retroactive reinsurance (3,684) (2,252) (7,686) 9,448 Prior years - excluding retroactive reinsurance 10,658 (721) 10,260 (1,216) Total incurred losses and loss and adjustment expenses 115,471 120,440 225,520 246,821 Deduct: Loss and loss adjustment expense payments net of reinsurance: Current year 6,189 5,520 8,283 8,081 Prior years 94,690 83,747 170,234 155,101 Total loss and loss adjustment expense payments 100,879 89,267 178,517 163,182 Deduct: Change in deferred reinsurance gain - retroactive reinsurance (3,684) (2,252) (7,686) 9,448 Reserve for losses and loss adjustment expenses net of reinsurance recoverables at end of period 1,301,662 1,154,957 1,301,662 1,154,957 Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period 1,418,536 1,307,227 1,418,536 1,307,227 Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period $ 2,720,198 $ 2,462,184 $ 2,720,198 $ 2,462,184 |
Other Comprehensive (Loss) In_2
Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Components of Comprehensive Loss | The following table summarizes the components of other comprehensive (loss) income: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Unrealized (losses) gains arising during the period, before U.S. income taxes $ (3,784) $ (20,367) $ (13,934) $ 15,445 U.S. income taxes 795 3,637 2,926 (1,363) Unrealized (losses) gains arising during the period, net of U.S. income taxes (2,989) (16,730) (11,008) 14,082 Less reclassification adjustment: Net realized investment losses (798) (277) (1,109) (369) U.S. income taxes 168 4 233 6 Reclassification adjustment for investment losses realized in net income (630) (273) (876) (363) Other comprehensive (loss) income $ (2,359) $ (16,457) $ (10,132) $ 14,445 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Company's Segment Results | The following table summarizes the Company’s segment results: Excess and Specialty Corporate Total (in thousands) Three Months Ended June 30, 2024 Gross written premiums $ 292,836 $ 119,411 $ — $ 412,247 Net earned premiums 140,447 22,746 — 163,193 Underwriting profit of operating segments 6,427 3,416 — 9,843 Net investment income 20,255 4,097 579 24,931 Interest expense — — 6,344 6,344 Segment revenues 159,572 28,055 662 188,289 Segment goodwill 181,831 — — 181,831 Segment assets 3,211,050 1,385,738 141,418 4,738,206 Three Months Ended June 30, 2023 Gross written premiums $ 286,126 $ 136,924 $ — $ 423,050 Net earned premiums 149,611 23,858 — 173,469 Underwriting profit of operating segments 10,042 384 — 10,426 Net investment income 14,903 3,173 158 18,234 Interest expense — — 5,997 5,997 Segment revenues 166,130 28,330 322 194,782 Segment goodwill 181,831 — — 181,831 Segment assets 2,880,824 1,381,877 87,541 4,350,242 Six Months Ended June 30, 2024 Gross written premiums $ 506,527 $ 236,530 $ — $ 743,057 Net earned premiums 286,070 48,814 — 334,884 Underwriting profit of operating segments 24,918 4,202 — 29,120 Net investment income 38,681 8,083 799 47,563 Interest expense — — 12,829 12,829 Segment revenues 328,493 59,591 1,332 389,416 Segment goodwill 181,831 — — 181,831 Segment assets 3,211,050 1,385,738 141,418 4,738,206 Six Months Ended June 30, 2023 Gross written premiums $ 515,029 $ 261,475 $ — $ 776,504 Net earned premiums 298,040 44,339 — 342,379 Underwriting profit (loss) of operating segments 27,107 (85) — 27,022 Net investment income 29,956 6,158 545 36,659 Interest expense — — 11,580 11,580 Segment revenues 329,850 52,840 896 383,586 Segment goodwill 181,831 — — 181,831 Segment assets 2,880,824 1,381,877 87,541 4,350,242 |
Schedule of Underwriting Profit of Operating Segments by Individual Segment and Reconciliation to Consolidated Income Before Taxes | The following table reconciles the underwriting profit (loss) of the operating segments by individual segment to consolidated income from continuing operations before income taxes: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Underwriting profit (loss) of the operating segments: Excess and Surplus Lines $ 6,427 $ 10,042 $ 24,918 $ 27,107 Specialty Admitted Insurance 3,416 384 4,202 (85) Total underwriting profit of operating segments 9,843 10,426 29,120 27,022 Other operating expenses of the Corporate and Other segment (8,624) (8,548) (19,761) (17,830) Underwriting profit 1,219 1,878 9,359 9,192 Losses and loss adjustment expenses - retroactive reinsurance 3,684 2,252 7,686 (9,448) Net investment income 24,931 18,234 47,563 36,659 Net realized and unrealized (losses) gains on investments (2,305) 1,615 2,278 1,775 Other income and expenses (905) (53) (726) (468) Interest expense (6,344) (5,997) (12,829) (11,580) Amortization of intangible assets (91) (91) (182) (182) Income from continuing operations before income taxes $ 20,189 $ 17,838 $ 53,149 $ 25,948 |
Other Operating Expenses and _2
Other Operating Expenses and Other Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Operating Expenses and Other Expenses [Abstract] | |
Schedule of Other Operating Expenses | Other operating expenses consist of the following: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Amortization of policy acquisition costs $ 13,765 $ 19,930 $ 31,805 $ 36,759 Other underwriting expenses of the operating segments 21,707 21,715 43,340 43,640 Other operating expenses of the Corporate and Other segment 8,624 8,548 19,761 17,830 Total $ 44,096 $ 50,193 $ 94,906 $ 98,229 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | Assets measured at fair value on a recurring basis as of June 30, 2024 are summarized below: Fair Value Measurements Using Quoted Prices Significant Significant Total (in thousands) Fixed maturity securities, available-for-sale: State and municipal $ — $ 202,925 $ — $ 202,925 Residential mortgage-backed — 285,283 — 285,283 Corporate — 405,316 — 405,316 Commercial mortgage and asset-backed — 198,304 — 198,304 U.S. Treasury securities and obligations guaranteed by the U.S. government 22,647 — — 22,647 Total fixed maturity securities, available-for-sale $ 22,647 $ 1,091,828 $ — $ 1,114,475 Equity securities: Preferred stock — 74,546 — 74,546 Common stock 51,540 2,473 5 54,018 Total equity securities $ 51,540 $ 77,019 $ 5 $ 128,564 Bank loan participations $ — $ 165,280 $ — $ 165,280 Short-term investments $ — $ 45,977 $ — $ 45,977 Assets measured at fair value on a recurring basis as of December 31, 2023 are summarized below: Fair Value Measurements Using Quoted Prices Significant Significant Total (in thousands) Fixed maturity securities, available-for-sale: State and municipal $ — $ 248,837 $ — $ 248,837 Residential mortgage-backed — 317,928 — 317,928 Corporate — 505,728 — 505,728 Commercial mortgage and asset-backed — 222,853 — 222,853 U.S. Treasury securities and obligations guaranteed by the U.S. government 29,130 — — 29,130 Total fixed maturity securities, available-for-sale $ 29,130 $ 1,295,346 $ — $ 1,324,476 Equity securities: Preferred stock — 69,310 — 69,310 Common stock 48,370 2,254 11 50,635 Total equity securities $ 48,370 $ 71,564 $ 11 $ 119,945 Bank loan participations $ — $ 156,169 $ — $ 156,169 Short-term investments $ — $ 72,137 $ — $ 72,137 |
Schedule of Reconciliation of Securities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | A reconciliation of the beginning and ending balances of available-for-sale fixed maturity securities, equity securities, and bank loan participations measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is shown below: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) (in thousands) Beginning balance $ 17 $ 7 $ 11 $ 7 Transfers out of Level 3 — — — — Transfers in to Level 3 — — — — Purchases — — — — Sales — — — — Maturities, calls and paydowns — — — — Amortization of discount — — — — Total gains or losses (realized/unrealized): Included in earnings (12) 9 (6) 9 Included in other comprehensive income — — — — Ending balance $ 5 $ 16 $ 5 $ 16 |
Schedule of Carrying Value and Fair Value of Financial Instruments | The carrying values and fair values of financial instruments are summarized below: June 30, 2024 December 31, 2023 Carrying Fair Value Carrying Fair Value (in thousands) Assets Fixed maturity securities, available-for-sale $ 1,114,475 $ 1,114,475 $ 1,324,476 $ 1,324,476 Equity securities 128,564 128,564 119,945 119,945 Bank loan participations 165,280 165,280 156,169 156,169 Cash and cash equivalents 672,523 672,523 274,298 274,298 Restricted cash equivalents 27,963 27,963 72,449 72,449 Short-term investments 45,977 45,977 72,137 72,137 Other invested assets – notes receivable 14,180 13,041 12,174 11,702 Liabilities Senior debt 200,800 207,465 222,300 233,408 Junior subordinated debt 104,055 132,657 104,055 138,264 |
Capital Stock and Equity Awar_2
Capital Stock and Equity Awards (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Dividends | The Company declared the following dividends on common shares during the first six months of 2024 and 2023: Date of Declaration Dividend per Common Share Payable to Shareholders of Record on Payment Date Total Amount 2024 February 15, 2024 $ 0.05 March 11, 2024 March 29, 2024 $ 1,940,410 April 25, 2024 $ 0.05 June 10, 2024 June 28,2024 1,938,439 $ 0.10 $ 3,878,849 2023 February 16, 2023 $ 0.05 March 13, 2023 March 31, 2023 $ 1,921,802 April 27, 2023 $ 0.05 June 12, 2023 June 30, 2023 $ 1,921,040 $ 0.10 $ 3,842,842 |
Schedule of Option Activity | The following table summarizes option activity: Six Months Ended June 30, 2024 2023 Shares Weighted- Shares Weighted- Outstanding: Beginning of period 74,390 $ 42.17 287,974 $ 35.26 Granted — $ — — $ — Exercised — $ — — $ — Forfeited — $ — (45,106) $ 34.92 Lapsed (74,390) $ 42.17 (164,548) $ 32.07 End of period — $ — 78,320 $ 42.17 Exercisable, end of period — $ — 78,320 $ 42.17 |
Schedule of RSU Activity | The following table summarizes RSU activity: Six Months Ended June 30, 2024 2023 Shares Weighted- Shares Weighted- Unvested, beginning of period 751,254 $ 23.48 665,458 $ 25.98 Granted 537,060 $ 9.76 363,484 $ 24.83 Vested (268,993) $ 25.11 (212,128) $ 28.93 Forfeited (76,305) $ 15.56 (15,233) $ 23.10 Unvested, end of period 943,016 $ 15.84 801,581 $ 24.73 |
Schedule of Share Based Compensation Expense and Related Tax Benefit | Share based compensation expense is recognized on a straight-line basis over the vesting period. The amount of expense and related tax benefit is summarized below: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Share based compensation expense $ 1,553 $ 2,316 $ 4,228 $ 5,008 U.S. tax benefit on share based compensation expense 293 427 790 943 |
Accounting Policies (Details)
Accounting Policies (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) insurance_company | Jun. 30, 2023 | Jun. 30, 2024 USD ($) insurance_company | Jun. 30, 2023 | Dec. 31, 2023 USD ($) | |
Accounting Policies [Line Items] | |||||
Investment in variable interest entities | $ | $ 8 | $ 8 | $ 8.4 | ||
Effective tax | 28.30% | 32% | 28.50% | 32.80% | |
United States | |||||
Accounting Policies [Line Items] | |||||
Number of insurance companies | insurance_company | 5 | 5 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Apr. 16, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Cash payment | $ 96,412 | $ 0 | ||||||
Loss on disposal | $ 1,203 | $ 0 | 1,375 | 0 | ||||
Discontinued Operations, Disposed of by Sale | Jrg Re | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Estimated transaction value | $ 291,400 | |||||||
Cash payment | 152,400 | |||||||
Pre close dividend | 139,000 | $ 139,000 | ||||||
Amount owed by buyer | 2,500 | |||||||
Downward adjustment | 11,400 | |||||||
Downward adjustment disputed | $ 54,100 | |||||||
Pre close dividend, forgiveness | 133,200 | |||||||
Cash paid to JRGH | $ 5,800 | $ 5,800 | ||||||
Estimated loss on sale | $ 80,400 | 78,000 | ||||||
Loss on disposal | $ 1,203 | $ 0 | 1,375 | $ 0 | ||||
Gain for change in estimated loss on sale | 2,400 | |||||||
Selling costs incurred | $ 3,800 |
Discontinued Operations - JRG R
Discontinued Operations - JRG Re's Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Assets held for sale | $ 0 | $ 783,393 |
Liabilities | ||
Liabilities held for sale | $ 0 | 641,497 |
Discontinued Operations, Disposed of by Sale | Jrg Re | ||
Assets | ||
Fixed maturity securities, at fair value | 532,242 | |
Equity securities, at fair value | 2,779 | |
Total invested assets | 535,021 | |
Cash and cash equivalents | 13,202 | |
Accrued investment income | 3,589 | |
Premiums receivable and agents’ balances, net | 68,441 | |
Reinsurance recoverable on unpaid and paid losses, net | 234,615 | |
Deferred policy acquisition costs | 4,986 | |
Write down of JRG Re to fair value less cost to sell | (80,400) | |
Other assets | 3,939 | |
Assets held for sale | 783,393 | |
Liabilities | ||
Reserve for losses and loss adjustment expenses | 441,666 | |
Unearned premiums | 17,223 | |
Funds held | 137,796 | |
Deferred reinsurance gain | 33,167 | |
Accrued expenses | 1,955 | |
Other liabilities | 9,690 | |
Liabilities held for sale | $ 641,497 |
Discontinued Operations - Opera
Discontinued Operations - Operating Results of JRG Re Reported in Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Expenses: | ||||
(Loss) income from discontinued operations | $ (5,650) | $ 3,785 | $ (13,583) | $ 5,489 |
Loss on disposal of discontinued operations | (1,203) | 0 | (1,375) | 0 |
Total (loss) income from discontinued operations | (6,853) | 3,785 | (14,958) | 5,489 |
Discontinued Operations, Disposed of by Sale | Jrg Re | ||||
Revenues: | ||||
Gross written premiums | 780 | 4,691 | 1,137 | 15,130 |
Ceded written premiums | 0 | (396) | 877 | (1,770) |
Net written premiums | 780 | 4,295 | 2,014 | 13,360 |
Change in net unearned premiums | 940 | 22,503 | 8,371 | 49,711 |
Net earned premiums | 1,720 | 26,798 | 10,385 | 63,071 |
Net investment income | 580 | 6,941 | 4,432 | 14,288 |
Net realized and unrealized (losses) gains on investments | (7,229) | 530 | (9,472) | 777 |
Total revenues | (4,929) | 34,269 | 5,345 | 78,136 |
Expenses: | ||||
Losses and loss adjustment expenses | (281) | 20,868 | 13,157 | 49,775 |
Other operating expenses | 913 | 8,672 | 5,039 | 20,895 |
Interest expense | 89 | 944 | 732 | 1,977 |
Total expenses | 721 | 30,484 | 18,928 | 72,647 |
(Loss) income from discontinued operations | (5,650) | 3,785 | (13,583) | 5,489 |
Loss on disposal of discontinued operations | (1,203) | 0 | (1,375) | 0 |
Total (loss) income from discontinued operations | $ (6,853) | $ 3,785 | $ (14,958) | $ 5,489 |
Discontinued Operations - Cash
Discontinued Operations - Cash Flows (Details) - Discontinued Operations, Disposed of by Sale - Jrg Re - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows from Discontinued Operations | ||
Net cash used in operating activities of discontinued operations | $ (25,115) | $ (48,878) |
Net cash provided by investing activities of discontinued operations | 63,104 | 59,555 |
Net cash provided by (used in) discontinued operations | 37,989 | 10,677 |
Interest paid by discontinued operations | $ 1,388 | $ 2,162 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-Sale Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities, Cost or Amortized Cost | $ 1,207,960 | |
Total fixed maturity securities, available-for-sale | 1,114,475 | $ 1,324,476 |
Total fixed maturity securities, available-for-sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities, Cost or Amortized Cost | 1,207,960 | 1,405,136 |
Total fixed maturity securities, Gross Unrealized Gains | 1,457 | 7,330 |
Total fixed maturity securities, Gross Unrealized Losses | (94,942) | (87,990) |
Total fixed maturity securities, available-for-sale | 1,114,475 | 1,324,476 |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities, Cost or Amortized Cost | 229,975 | 273,462 |
Total fixed maturity securities, Gross Unrealized Gains | 632 | 1,834 |
Total fixed maturity securities, Gross Unrealized Losses | (27,682) | (26,459) |
Total fixed maturity securities, available-for-sale | 202,925 | 248,837 |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities, Cost or Amortized Cost | 310,235 | 336,064 |
Total fixed maturity securities, Gross Unrealized Gains | 56 | 1,243 |
Total fixed maturity securities, Gross Unrealized Losses | (25,008) | (19,379) |
Total fixed maturity securities, available-for-sale | 285,283 | 317,928 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities, Cost or Amortized Cost | 435,227 | 530,408 |
Total fixed maturity securities, Gross Unrealized Gains | 721 | 4,167 |
Total fixed maturity securities, Gross Unrealized Losses | (30,632) | (28,847) |
Total fixed maturity securities, available-for-sale | 405,316 | 505,728 |
Commercial mortgage and asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities, Cost or Amortized Cost | 209,115 | 235,302 |
Total fixed maturity securities, Gross Unrealized Gains | 48 | 78 |
Total fixed maturity securities, Gross Unrealized Losses | (10,859) | (12,527) |
Total fixed maturity securities, available-for-sale | 198,304 | 222,853 |
U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities, Cost or Amortized Cost | 23,408 | 29,900 |
Total fixed maturity securities, Gross Unrealized Gains | 0 | 8 |
Total fixed maturity securities, Gross Unrealized Losses | (761) | (778) |
Total fixed maturity securities, available-for-sale | $ 22,647 | $ 29,130 |
Investments - Schedule of Contr
Investments - Schedule of Contract Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Cost or Amortized Cost | ||
One year or less | $ 19,661 | |
After one year through five years | 308,786 | |
After five years through ten years | 230,535 | |
After ten years | 129,628 | |
Residential mortgage-backed | 310,235 | |
Commercial mortgage and asset-backed | 209,115 | |
Total fixed maturity securities, Cost or Amortized Cost | 1,207,960 | |
Fair Value | ||
One year or less | 19,434 | |
After one year through five years | 299,268 | |
After five years through ten years | 204,929 | |
After ten years | 107,257 | |
Residential mortgage-backed | 285,283 | |
Commercial mortgage and asset-backed | 198,304 | |
Total investments available-for-sale, Fair Value | $ 1,114,475 | $ 1,324,476 |
Investments - Schedule of Gross
Investments - Schedule of Gross Unrealized Losses and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Total fixed maturity securities, available-for-sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | $ 185,099 | $ 186,672 |
Fixed maturity securities, less than 12 months, gross unrealized losses | (2,700) | (2,297) |
Fixed maturity securities, 12 months or more, fair value | 796,692 | 806,963 |
Fixed maturity securities, 12 months or more, gross unrealized losses | (92,242) | (85,693) |
Fixed maturity securities, fair value | 981,791 | 993,635 |
Fixed maturity securities, gross unrealized losses | (94,942) | (87,990) |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 24,864 | 30,196 |
Fixed maturity securities, less than 12 months, gross unrealized losses | (604) | (287) |
Fixed maturity securities, 12 months or more, fair value | 157,731 | 168,517 |
Fixed maturity securities, 12 months or more, gross unrealized losses | (27,078) | (26,172) |
Fixed maturity securities, fair value | 182,595 | 198,713 |
Fixed maturity securities, gross unrealized losses | (27,682) | (26,459) |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 74,310 | 68,497 |
Fixed maturity securities, less than 12 months, gross unrealized losses | (1,177) | (1,256) |
Fixed maturity securities, 12 months or more, fair value | 200,429 | 145,954 |
Fixed maturity securities, 12 months or more, gross unrealized losses | (23,831) | (18,123) |
Fixed maturity securities, fair value | 274,739 | 214,451 |
Fixed maturity securities, gross unrealized losses | (25,008) | (19,379) |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 70,309 | 55,970 |
Fixed maturity securities, less than 12 months, gross unrealized losses | (802) | (532) |
Fixed maturity securities, 12 months or more, fair value | 274,982 | 290,308 |
Fixed maturity securities, 12 months or more, gross unrealized losses | (29,830) | (28,315) |
Fixed maturity securities, fair value | 345,291 | 346,278 |
Fixed maturity securities, gross unrealized losses | (30,632) | (28,847) |
Commercial mortgage and asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 14,119 | 24,048 |
Fixed maturity securities, less than 12 months, gross unrealized losses | (95) | (151) |
Fixed maturity securities, 12 months or more, fair value | 142,399 | 182,295 |
Fixed maturity securities, 12 months or more, gross unrealized losses | (10,764) | (12,376) |
Fixed maturity securities, fair value | 156,518 | 206,343 |
Fixed maturity securities, gross unrealized losses | (10,859) | (12,527) |
U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 1,497 | 7,961 |
Fixed maturity securities, less than 12 months, gross unrealized losses | (22) | (71) |
Fixed maturity securities, 12 months or more, fair value | 21,151 | 19,889 |
Fixed maturity securities, 12 months or more, gross unrealized losses | (739) | (707) |
Fixed maturity securities, fair value | 22,648 | 27,850 |
Fixed maturity securities, gross unrealized losses | $ (761) | $ (778) |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) issuer | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) issuer | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Gain (Loss) on Securities [Line Items] | |||||
Bank loan participations | $ 165,280 | $ 165,280 | $ 156,169 | ||
Unpaid principal balance | 173,400 | 173,400 | |||
Net investment income | 4,600 | $ 2,000 | 9,100 | $ 3,500 | |
Net gain (loss) in bank loan participations | (843) | 1,559 | (1,124) | 2,066 | |
Unrealized losses | $ 1,400 | $ 497 | $ 2,600 | $ 1,000 | |
Fixed Maturity Securities | |||||
Gain (Loss) on Securities [Line Items] | |||||
Number of issuers | issuer | 422 | 422 | |||
Total fair value | $ 981,791 | $ 981,791 | 993,635 | ||
Gross unrealized losses | 94,942 | $ 94,942 | $ 87,990 | ||
Impairment loss | $ 207 | ||||
Fixed Maturity Securities | BBB- or better | |||||
Gain (Loss) on Securities [Line Items] | |||||
Percentage of available for sale securities | 100% | 100% |
Investments - Schedule of Reali
Investments - Schedule of Realized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments [Abstract] | ||||
Fixed maturity securities, gross realized gains | $ 1,543 | $ 0 | $ 1,543 | $ 0 |
Fixed maturity securities, gross realized losses | (2,341) | (20) | (2,652) | (27) |
Fixed maturity securities | (798) | (20) | (1,109) | (27) |
Bank loan participations, gross realized gains | 223 | 22 | 531 | 42 |
Bank loan participations, gross realized losses | (313) | (2,286) | (1,261) | (2,709) |
Changes in fair values of bank loan participations | (753) | 3,823 | (394) | 4,733 |
Bank loan participations | (843) | 1,559 | (1,124) | 2,066 |
Equity securities, gross realized gains | 423 | 350 | 1,547 | 931 |
Equity securities, gross realized losses | 0 | 0 | (177) | (267) |
Changes in fair values of equity securities | (1,087) | (269) | 3,141 | (912) |
Equity securities | (664) | 81 | 4,511 | (248) |
Short-term investments and other, gross realized gains | 0 | 0 | 0 | 2 |
Short-term investments and other, gross realized losses | 0 | (5) | 0 | (18) |
Changes in fair values of short-term investments and other | 0 | 0 | 0 | 0 |
Short-term investments and other | 0 | (5) | 0 | (16) |
Total | $ (2,305) | $ 1,615 | $ 2,278 | $ 1,775 |
Investments - Schedule of Priva
Investments - Schedule of Private Debt and Equity (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 USD ($) note | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 project | Jun. 30, 2024 USD ($) note | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Aug. 12, 2023 USD ($) | |
Net Investment Income [Line Items] | ||||||||
Carrying Value | $ 35,834 | $ 35,834 | $ 33,134 | |||||
Investment Income | 1,909 | $ 232 | 1,764 | $ 1,823 | ||||
Proceeds from sales | 2,763 | 1,153 | ||||||
Renewable energy LLCs | ||||||||
Net Investment Income [Line Items] | ||||||||
Carrying Value | 8,003 | 8,003 | 8,382 | |||||
Investment Income | 1,241 | (305) | 955 | 868 | ||||
Number of underlying projects sold | project | 2 | |||||||
Proceeds from sales | 1,200 | $ 1,200 | ||||||
Renewable energy notes receivable | ||||||||
Net Investment Income [Line Items] | ||||||||
Carrying Value | 0 | 0 | 1,369 | |||||
Investment Income | 0 | 81 | 138 | 162 | ||||
Limited partnerships | ||||||||
Net Investment Income [Line Items] | ||||||||
Carrying Value | 13,651 | 13,651 | 12,578 | |||||
Investment Income | 517 | 370 | 402 | 621 | ||||
Private debt | ||||||||
Net Investment Income [Line Items] | ||||||||
Carrying Value | 14,180 | 14,180 | 10,805 | |||||
Investment Income | 151 | 86 | 269 | 172 | ||||
Excess and Surplus Lines | ||||||||
Net Investment Income [Line Items] | ||||||||
Carrying Value | 35,170 | 35,170 | 31,709 | |||||
Investment Income | 1,616 | 187 | 1,394 | 1,563 | ||||
Excess and Surplus Lines | Renewable energy LLCs | ||||||||
Net Investment Income [Line Items] | ||||||||
Carrying Value | 8,003 | 8,003 | 8,382 | |||||
Investment Income | 948 | (305) | 662 | 698 | ||||
Proceeds from sales | $ 880 | 984 | ||||||
Excess and Surplus Lines | Renewable energy LLCs | Investment in LLC | ||||||||
Net Investment Income [Line Items] | ||||||||
Cash distributions from LLCs | $ 161,000 | 24 | ||||||
Excess and Surplus Lines | Renewable energy LLCs | Minimum | Investment in LLC | Various LLCs | ||||||||
Net Investment Income [Line Items] | ||||||||
Ownership percentage | 2.50% | 2.50% | ||||||
Excess and Surplus Lines | Renewable energy LLCs | Maximum | Investment in LLC | Various LLCs | ||||||||
Net Investment Income [Line Items] | ||||||||
Ownership percentage | 4.90% | 4.90% | ||||||
Excess and Surplus Lines | Renewable energy notes receivable | ||||||||
Net Investment Income [Line Items] | ||||||||
Carrying Value | $ 0 | $ 0 | 608 | |||||
Investment Income | $ 0 | 36 | $ 61 | 72 | ||||
Number of notes issued | note | 2 | 2 | ||||||
Rate of interest | 12% | 12% | ||||||
Total principal balance received | $ 608 | |||||||
Excess and Surplus Lines | Limited partnerships | ||||||||
Net Investment Income [Line Items] | ||||||||
Carrying Value | $ 12,987 | 12,987 | 11,914 | |||||
Investment Income | 517 | 370 | 402 | 621 | ||||
Outstanding commitments to invest | 5,000 | 5,000 | ||||||
Excess and Surplus Lines | Private debt | ||||||||
Net Investment Income [Line Items] | ||||||||
Carrying Value | 14,180 | 14,180 | 10,805 | |||||
Investment Income | $ 151 | 86 | $ 269 | 172 | ||||
Excess and Surplus Lines | Private speciality credit | ||||||||
Net Investment Income [Line Items] | ||||||||
Number of notes issued | note | 2 | 2 | ||||||
Commitment to investment in notes | $ 2,300 | $ 2,300 | ||||||
Excess and Surplus Lines | Private speciality credit | Notes receivable one | ||||||||
Net Investment Income [Line Items] | ||||||||
Rate of interest | 4.25% | 4.25% | ||||||
Excess and Surplus Lines | Private speciality credit | Notes receivable two | ||||||||
Net Investment Income [Line Items] | ||||||||
Rate of interest | 5.25% | 5.25% | ||||||
Excess and Surplus Lines | Bank holding companies | ||||||||
Net Investment Income [Line Items] | ||||||||
Rate of interest | 7.60% | |||||||
Investment in private subordinated notes | $ 4,500 | |||||||
Corporate and Other | ||||||||
Net Investment Income [Line Items] | ||||||||
Carrying Value | $ 664 | $ 664 | 1,425 | |||||
Investment Income | 293 | 45 | 370 | 260 | ||||
Corporate and Other | Renewable energy LLCs | ||||||||
Net Investment Income [Line Items] | ||||||||
Carrying Value | 0 | 0 | 0 | |||||
Investment Income | 293 | 0 | 293 | 170 | ||||
Proceeds from sales | 293 | $ 170 | ||||||
Corporate and Other | Renewable energy notes receivable | ||||||||
Net Investment Income [Line Items] | ||||||||
Carrying Value | 0 | 0 | 761 | |||||
Investment Income | $ 0 | 45 | $ 77 | 90 | ||||
Number of notes issued | note | 2 | 2 | ||||||
Rate of interest | 12% | 12% | ||||||
Total principal balance received | $ 761 | |||||||
Corporate and Other | Limited partnerships | ||||||||
Net Investment Income [Line Items] | ||||||||
Carrying Value | $ 664 | 664 | 664 | |||||
Investment Income | 0 | 0 | 0 | 0 | ||||
Corporate and Other | Private debt | ||||||||
Net Investment Income [Line Items] | ||||||||
Carrying Value | 0 | 0 | $ 0 | |||||
Investment Income | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 11, 2007 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 181,831 | $ 181,831 | $ 181,831 | |
James River Group, Inc. | ||||
Business Acquisition [Line Items] | ||||
Percentage of outstanding shares | 100% |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Acquired Intangible Assets [Line Items] | ||
Identifiable intangible assets not subject to amortization | $ 28,664 | $ 28,664 |
Identifiable intangible assets subject to amortization | ||
Gross Carrying Amount | 11,611 | 11,611 |
Accumulated Amortization | 7,644 | 7,462 |
Total Intangible Assets, Gross | 40,275 | 40,275 |
Broker relationships | ||
Identifiable intangible assets subject to amortization | ||
Gross Carrying Amount | 11,611 | 11,611 |
Accumulated Amortization | $ 7,644 | 7,462 |
Life (Years) | 24 years 7 months 6 days | |
Trademarks | ||
Acquired Intangible Assets [Line Items] | ||
Identifiable intangible assets not subject to amortization | $ 19,700 | 19,700 |
Insurance licenses and authorities | ||
Acquired Intangible Assets [Line Items] | ||
Identifiable intangible assets not subject to amortization | $ 8,964 | $ 8,964 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net income from continuing operations | $ 14,478 | $ 12,129 | $ 37,986 | $ 17,431 |
Less: Dividends on Series A preferred shares | (2,625) | (2,625) | (5,250) | (5,250) |
Income from continuing operations available to common shareholders | 11,853 | 9,504 | 32,736 | 12,181 |
(Loss) income from discontinued operations | (6,853) | 3,785 | (14,958) | 5,489 |
Net income available to common shareholders | $ 5,000 | $ 13,289 | $ 17,778 | $ 17,670 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 37,869,322 | 37,642,289 | 37,801,516 | 37,587,359 |
Dilutive potential common shares (in shares) | 168,071 | 216,458 | 6,961,047 | 235,046 |
Diluted (in shares) | 38,037,393 | 37,858,747 | 44,762,563 | 37,822,405 |
Net income (loss) per common share, Basic | ||||
Continuing operations (in dollars per share) | $ 0.31 | $ 0.25 | $ 0.87 | $ 0.32 |
Discontinued operations (in dollars per share) | (0.18) | 0.10 | (0.40) | 0.15 |
Basic (in dollars per share) | 0.13 | 0.35 | 0.47 | 0.47 |
Net income (loss) per common share, Diluted | ||||
Continuing operations (in dollars per share) | 0.31 | 0.25 | 0.85 | 0.32 |
Discontinued operations (in dollars per share) | (0.18) | 0.10 | (0.33) | 0.15 |
Diluted (in dollars per share) | $ 0.13 | $ 0.35 | $ 0.52 | $ 0.47 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2023 | |
Stock options, restricted share units ("RSU's") and convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of securities excluded from the calculations of diluted earnings per share (in shares) | 6,848,763 | 5,640,158 | 5,640,158 |
Reserve for Losses and Loss A_3
Reserve for Losses and Loss Adjustment Expenses - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 36 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Insurance [Abstract] | |||||||||
Allowance for credit losses on reinsurance recoverables | $ 744 | $ 637 | $ 744 | $ 637 | $ 744 | $ 660 | $ 660 | $ 628 | $ 580 |
Reserve For Losses And Loss Adjustment Expenses [Line Items] | |||||||||
Development on prior year loss reserves | 10,658 | (721) | 10,260 | (1,216) | |||||
Deferred reinsurance gain | 13,047 | 13,047 | 13,047 | 20,733 | |||||
Excess and Surplus Lines | |||||||||
Reserve For Losses And Loss Adjustment Expenses [Line Items] | |||||||||
Development on prior year loss reserves | 10,700 | 118 | 10,700 | (206) | |||||
Excess and Surplus Lines | Loss Portfolio Transfer | Commercial Auto Business | |||||||||
Reserve For Losses And Loss Adjustment Expenses [Line Items] | |||||||||
Development on prior year loss reserves | 1,400 | 12,600 | 1,900 | 53,600 | 113,000 | ||||
Retroactive reinsurance benefit recognized | 5,100 | 14,800 | 9,600 | 44,100 | |||||
Cumulative amounts ceded under loss portfolio transfer | 458,100 | 458,100 | 458,100 | 456,200 | |||||
Deferred reinsurance gain | 13,000 | 13,000 | $ 13,000 | $ 20,700 | |||||
Excess and Surplus Lines | Loss Portfolio Transfer And Adverse Development Cover Reinsurance Transaction | |||||||||
Reserve For Losses And Loss Adjustment Expenses [Line Items] | |||||||||
Development on prior year loss reserves | $ 9,700 | 9,700 | |||||||
Specialty Admitted Insurance | |||||||||
Reserve For Losses And Loss Adjustment Expenses [Line Items] | |||||||||
Development on prior year loss reserves | $ (839) | $ (442) | $ (1,000) |
Reserve for Losses and Loss A_4
Reserve for Losses and Loss Adjustment Expenses - Reserve for Losses and Loss Adjustment Expenses, Net of Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 36 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Period Increase (Decrease) [Abstract] | ||||||
Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period | $ 1,283,386 | $ 1,121,532 | $ 1,246,973 | $ 1,080,766 | ||
Add: Incurred losses and loss adjustment expenses net of reinsurance: | ||||||
Current year | 108,497 | 123,413 | 222,946 | 238,589 | ||
Prior years - excluding retroactive reinsurance | 10,658 | (721) | 10,260 | (1,216) | ||
Total incurred losses and loss and adjustment expenses | 115,471 | 120,440 | 225,520 | 246,821 | ||
Deduct: Loss and loss adjustment expense payments net of reinsurance: | ||||||
Current year | 6,189 | 5,520 | 8,283 | 8,081 | ||
Prior years | 94,690 | 83,747 | 170,234 | 155,101 | ||
Total loss and loss adjustment expense payments | 100,879 | 89,267 | 178,517 | 163,182 | ||
Reserve for losses and loss adjustment expenses net of reinsurance recoverables at end of period | 1,301,662 | 1,154,957 | 1,301,662 | 1,154,957 | $ 1,301,662 | |
Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period | 1,418,536 | 1,307,227 | 1,418,536 | 1,307,227 | 1,418,536 | |
Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period | 2,720,198 | 2,462,184 | 2,720,198 | 2,462,184 | 2,720,198 | $ 2,606,107 |
Excess and Surplus Lines | ||||||
Add: Incurred losses and loss adjustment expenses net of reinsurance: | ||||||
Prior years - excluding retroactive reinsurance | 10,700 | 118 | 10,700 | (206) | ||
Loss Portfolio Transfer | Excess and Surplus Lines | Commercial Auto Business | ||||||
Add: Incurred losses and loss adjustment expenses net of reinsurance: | ||||||
Prior years - retroactive reinsurance | (3,684) | (2,252) | (7,686) | 9,448 | ||
Prior years - excluding retroactive reinsurance | 1,400 | 12,600 | 1,900 | 53,600 | $ 113,000 | |
Deduct: Loss and loss adjustment expense payments net of reinsurance: | ||||||
Deduct: Change in deferred reinsurance gain - retroactive reinsurance | $ (3,684) | $ (2,252) | $ (7,686) | $ 9,448 |
Other Comprehensive (Loss) In_3
Other Comprehensive (Loss) Income - Schedule of Components of Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Unrealized (losses) gains arising during the period, before U.S. income taxes | $ (3,784) | $ (20,367) | $ (13,934) | $ 15,445 |
U.S. income taxes | 795 | 3,637 | 2,926 | (1,363) |
Unrealized (losses) gains arising during the period, net of U.S. income taxes | (2,989) | (16,730) | (11,008) | 14,082 |
Less reclassification adjustment: | ||||
Net realized investment losses | (798) | (277) | (1,109) | (369) |
U.S. income taxes | 168 | 4 | 233 | 6 |
Reclassification adjustment for investment losses realized in net income | (630) | (273) | (876) | (363) |
Other comprehensive (loss) income | $ (2,359) | $ (16,457) | $ (10,132) | $ 14,445 |
Other Comprehensive (Loss) In_4
Other Comprehensive (Loss) Income - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Net realized investment losses on available-for-sale fixed maturities | $ 798 | $ 277 | $ 1,109 | $ 369 |
Net realized and unrealized (losses) gains in bank loan participations | (843) | 1,559 | (1,124) | 2,066 |
Net realized and unrealized gains (losses) on investments in equity securities | $ (664) | $ 81 | $ 4,511 | $ (248) |
Contingent Liabilities (Details
Contingent Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 36 Months Ended | ||||||
Dec. 22, 2023 | Sep. 27, 2021 | Jul. 01, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | |
Contingent Liabilities [Line Items] | |||||||||
Amount to settle litigation | $ 30,000 | ||||||||
Prior years - excluding retroactive reinsurance | $ 10,658 | $ (721) | $ 10,260 | $ (1,216) | |||||
Reinsurance recoverable on unpaid losses, net | 1,417,791 | 1,417,791 | $ 1,417,791 | $ 1,358,474 | |||||
Reinsurance recoverable on paid losses | 160,555 | 160,555 | 160,555 | 157,991 | |||||
Excess and Surplus Lines | |||||||||
Contingent Liabilities [Line Items] | |||||||||
Prior years - excluding retroactive reinsurance | 10,700 | 118 | 10,700 | (206) | |||||
Excess and Surplus Lines | Commercial Auto Business | Aleka | Loss Fund Trust | |||||||||
Contingent Liabilities [Line Items] | |||||||||
Cash equivalent collateral trust arrangement | 7,700 | 7,700 | 7,700 | ||||||
Excess and Surplus Lines | Commercial Auto Business | Raiser | Indemnity Trust | |||||||||
Contingent Liabilities [Line Items] | |||||||||
Required collateral, percentage | 102% | ||||||||
Cash equivalent collateral returned to trust | $ 691,300 | ||||||||
Cash equivalent collateral trust arrangement | 99,600 | 99,600 | 99,600 | ||||||
Excess and Surplus Lines | Commercial Auto Business | Raiser | Indemnity Trust And Loss Fund Trust | |||||||||
Contingent Liabilities [Line Items] | |||||||||
Cash equivalent collateral trust arrangement | 117,000 | 117,000 | 117,000 | ||||||
Excess and Surplus Lines | Commercial Auto Business | Raiser | Loss Fund Trust | |||||||||
Contingent Liabilities [Line Items] | |||||||||
Cash equivalent collateral trust arrangement | 17,400 | 17,400 | 17,400 | ||||||
Excess and Surplus Lines | Commercial Auto Business | Rasier and Aleka | Loss Fund Trust | |||||||||
Contingent Liabilities [Line Items] | |||||||||
Cash equivalent collateral trust arrangement | 28,000 | 28,000 | 28,000 | ||||||
Loss Portfolio Transfer | Excess and Surplus Lines | Commercial Auto Business | |||||||||
Contingent Liabilities [Line Items] | |||||||||
Prior years - excluding retroactive reinsurance | 1,400 | $ 12,600 | 1,900 | $ 53,600 | 113,000 | ||||
Cumulative amounts ceded under loss portfolio transfer | 458,100 | 458,100 | 458,100 | $ 456,200 | |||||
Loss Portfolio Transfer | Excess and Surplus Lines | Commercial Auto Business | Aleka | |||||||||
Contingent Liabilities [Line Items] | |||||||||
Reinsurance premium | $ 345,100 | ||||||||
Required collateral, percentage | 102% | ||||||||
Reinsurance recoverables | 52,400 | 52,400 | 52,400 | ||||||
Loss Portfolio Transfer | Excess and Surplus Lines | Commercial Auto Business | Aleka | L PT Trust | |||||||||
Contingent Liabilities [Line Items] | |||||||||
Cash equivalent collateral trust arrangement | 45,400 | 45,400 | 45,400 | ||||||
Loss Portfolio Transfer | Excess and Surplus Lines | Commercial Auto Business | Aleka | LPT Trust And Loss Fund Trust | |||||||||
Contingent Liabilities [Line Items] | |||||||||
Cash equivalent collateral trust arrangement | $ 53,100 | $ 53,100 | $ 53,100 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 3 | |||
Specialty Admitted Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Gross fee income | $ | $ 1.3 | $ 1.3 | $ 2.6 | $ 2.4 |
Segment Information - Schedule
Segment Information - Schedule of Segment Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||||
Gross written premiums | $ 412,247 | $ 423,050 | $ 743,057 | $ 776,504 | |
Net earned premiums | 163,193 | 173,469 | 334,884 | 342,379 | |
Underwriting profit (loss) of operating segments | 9,843 | 10,426 | 29,120 | 27,022 | |
Net investment income | 24,931 | 18,234 | 47,563 | 36,659 | |
Interest expense | 6,344 | 5,997 | 12,829 | 11,580 | |
Segment revenues | 188,289 | 194,782 | 389,416 | 383,586 | |
Segment goodwill | 181,831 | 181,831 | 181,831 | 181,831 | $ 181,831 |
Segment assets | 4,738,206 | 4,350,242 | 4,738,206 | 4,350,242 | |
Excess and Surplus Lines | |||||
Segment Reporting Information [Line Items] | |||||
Underwriting profit (loss) of operating segments | 6,427 | 10,042 | 24,918 | 27,107 | |
Excess and Surplus Lines | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 292,836 | 286,126 | 506,527 | 515,029 | |
Net earned premiums | 140,447 | 149,611 | 286,070 | 298,040 | |
Underwriting profit (loss) of operating segments | 6,427 | 10,042 | 24,918 | 27,107 | |
Net investment income | 20,255 | 14,903 | 38,681 | 29,956 | |
Interest expense | 0 | 0 | 0 | 0 | |
Segment revenues | 159,572 | 166,130 | 328,493 | 329,850 | |
Segment goodwill | 181,831 | 181,831 | 181,831 | 181,831 | |
Segment assets | 3,211,050 | 2,880,824 | 3,211,050 | 2,880,824 | |
Specialty Admitted Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Underwriting profit (loss) of operating segments | 3,416 | 384 | 4,202 | (85) | |
Specialty Admitted Insurance | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 119,411 | 136,924 | 236,530 | 261,475 | |
Net earned premiums | 22,746 | 23,858 | 48,814 | 44,339 | |
Underwriting profit (loss) of operating segments | 3,416 | 384 | 4,202 | (85) | |
Net investment income | 4,097 | 3,173 | 8,083 | 6,158 | |
Interest expense | 0 | 0 | 0 | 0 | |
Segment revenues | 28,055 | 28,330 | 59,591 | 52,840 | |
Segment goodwill | 0 | 0 | 0 | 0 | |
Segment assets | 1,385,738 | 1,381,877 | 1,385,738 | 1,381,877 | |
Corporate and Other | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 0 | 0 | 0 | 0 | |
Net earned premiums | 0 | 0 | 0 | 0 | |
Underwriting profit (loss) of operating segments | 0 | 0 | 0 | 0 | |
Net investment income | 579 | 158 | 799 | 545 | |
Interest expense | 6,344 | 5,997 | 12,829 | 11,580 | |
Segment revenues | 662 | 322 | 1,332 | 896 | |
Segment goodwill | 0 | 0 | 0 | 0 | |
Segment assets | $ 141,418 | $ 87,541 | $ 141,418 | $ 87,541 |
Segment Information - Reconcili
Segment Information - Reconciliation of Operating Segments by Individual Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Total underwriting profit of operating segments | $ 9,843 | $ 10,426 | $ 29,120 | $ 27,022 |
Other operating expenses of the Corporate and Other segment | (8,624) | (8,548) | (19,761) | (17,830) |
Underwriting profit | 1,219 | 1,878 | 9,359 | 9,192 |
Net investment income | 24,931 | 18,234 | 47,563 | 36,659 |
Net realized and unrealized (losses) gains on investments | (2,305) | 1,615 | 2,278 | 1,775 |
Other income and expenses | (905) | (53) | (726) | (468) |
Interest expense | (6,344) | (5,997) | (12,829) | (11,580) |
Amortization of intangible assets | (91) | (91) | (182) | (182) |
Income from continuing operations before income taxes | 20,189 | 17,838 | 53,149 | 25,948 |
Excess and Surplus Lines | ||||
Segment Reporting Information [Line Items] | ||||
Total underwriting profit of operating segments | 6,427 | 10,042 | 24,918 | 27,107 |
Excess and Surplus Lines | Commercial Auto Business | Loss Portfolio Transfer | ||||
Segment Reporting Information [Line Items] | ||||
Losses and loss adjustment expenses - retroactive reinsurance | 3,684 | 2,252 | 7,686 | (9,448) |
Specialty Admitted Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Total underwriting profit of operating segments | $ 3,416 | $ 384 | $ 4,202 | $ (85) |
Other Operating Expenses and _3
Other Operating Expenses and Other Expenses - Schedule of Other Operating Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Operating Expenses and Other Expenses [Abstract] | ||||
Amortization of policy acquisition costs | $ 13,765 | $ 19,930 | $ 31,805 | $ 36,759 |
Other underwriting expenses of the operating segments | 21,707 | 21,715 | 43,340 | 43,640 |
Other operating expenses of the Corporate and Other segment | 8,624 | 8,548 | 19,761 | 17,830 |
Total | $ 44,096 | $ 50,193 | $ 94,906 | $ 98,229 |
Other Operating Expenses and _4
Other Operating Expenses and Other Expenses - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Operating Expenses and Other Expenses [Abstract] | ||||
Other expenses | $ 2,098 | $ 223 | $ 2,830 | $ 826 |
Senior Debt (Details)
Senior Debt (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Apr. 16, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||||
Amount outstanding on line of credit | $ 200,800,000 | $ 200,800,000 | $ 222,300,000 | ||
Repayments of senior debt | 21,500,000 | $ 0 | |||
2013 Facility | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Line of credit maximum capacity | $ 45,000,000 | ||||
Amount of letters of credit issued | 36,000,000 | 36,000,000 | |||
2013 Facility | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Line of credit maximum capacity | $ 212,500,000 | ||||
Amount outstanding on line of credit | 185,800,000 | 185,800,000 | $ 185,800,000 | ||
2017 Facility | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Amount of letters of credit issued | 24,700,000 | 24,700,000 | |||
2017 Facility | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Amount outstanding on line of credit | 0 | $ 0 | |||
Repayments of senior debt | $ 21,500,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | $ 1,114,475 | $ 1,324,476 |
Equity securities: | ||
Bank loan participations | 165,280 | 156,169 |
Short-term investments | 45,977 | 72,137 |
Fixed Maturity Securities | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 1,114,475 | 1,324,476 |
State and municipal | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 202,925 | 248,837 |
Residential mortgage-backed | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 285,283 | 317,928 |
Corporate | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 405,316 | 505,728 |
Commercial mortgage and asset-backed | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 198,304 | 222,853 |
U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 22,647 | 29,130 |
Recurring basis | ||
Equity securities: | ||
Bank loan participations | 165,280 | 156,169 |
Short-term investments | 45,977 | 72,137 |
Recurring basis | Fixed Maturity Securities | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 1,114,475 | 1,324,476 |
Recurring basis | State and municipal | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 202,925 | 248,837 |
Recurring basis | Residential mortgage-backed | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 285,283 | 317,928 |
Recurring basis | Corporate | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 405,316 | 505,728 |
Recurring basis | Commercial mortgage and asset-backed | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 198,304 | 222,853 |
Recurring basis | U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 22,647 | 29,130 |
Recurring basis | Equity securities | ||
Equity securities: | ||
Total equity securities | 128,564 | 119,945 |
Recurring basis | Preferred stock | ||
Equity securities: | ||
Total equity securities | 74,546 | 69,310 |
Recurring basis | Common stock | ||
Equity securities: | ||
Total equity securities | 54,018 | 50,635 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Equity securities: | ||
Bank loan participations | 0 | 0 |
Short-term investments | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Fixed Maturity Securities | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 22,647 | 29,130 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | State and municipal | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Residential mortgage-backed | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Corporate | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Commercial mortgage and asset-backed | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 22,647 | 29,130 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Equity securities | ||
Equity securities: | ||
Total equity securities | 51,540 | 48,370 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Preferred stock | ||
Equity securities: | ||
Total equity securities | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Common stock | ||
Equity securities: | ||
Total equity securities | 51,540 | 48,370 |
Recurring basis | Significant Other Observable Inputs Level 2 | ||
Equity securities: | ||
Bank loan participations | 165,280 | 156,169 |
Short-term investments | 45,977 | 72,137 |
Recurring basis | Significant Other Observable Inputs Level 2 | Fixed Maturity Securities | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 1,091,828 | 1,295,346 |
Recurring basis | Significant Other Observable Inputs Level 2 | State and municipal | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 202,925 | 248,837 |
Recurring basis | Significant Other Observable Inputs Level 2 | Residential mortgage-backed | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 285,283 | 317,928 |
Recurring basis | Significant Other Observable Inputs Level 2 | Corporate | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 405,316 | 505,728 |
Recurring basis | Significant Other Observable Inputs Level 2 | Commercial mortgage and asset-backed | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 198,304 | 222,853 |
Recurring basis | Significant Other Observable Inputs Level 2 | U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Significant Other Observable Inputs Level 2 | Equity securities | ||
Equity securities: | ||
Total equity securities | 77,019 | 71,564 |
Recurring basis | Significant Other Observable Inputs Level 2 | Preferred stock | ||
Equity securities: | ||
Total equity securities | 74,546 | 69,310 |
Recurring basis | Significant Other Observable Inputs Level 2 | Common stock | ||
Equity securities: | ||
Total equity securities | 2,473 | 2,254 |
Recurring basis | Significant Unobservable Inputs Level 3 | ||
Equity securities: | ||
Bank loan participations | 0 | 0 |
Short-term investments | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | Fixed Maturity Securities | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | State and municipal | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | Residential mortgage-backed | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | Corporate | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | Commercial mortgage and asset-backed | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Fixed maturity securities, available-for-sale: | ||
Total fixed maturity securities, available-for-sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | Equity securities | ||
Equity securities: | ||
Total equity securities | 5 | 11 |
Recurring basis | Significant Unobservable Inputs Level 3 | Preferred stock | ||
Equity securities: | ||
Total equity securities | 0 | 0 |
Recurring basis | Significant Unobservable Inputs Level 3 | Common stock | ||
Equity securities: | ||
Total equity securities | $ 5 | $ 11 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Available-for-Sale Fixed Maturity Securities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - Available-for-sale fixed maturity securities and equity securities - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 17 | $ 7 | $ 11 | $ 7 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Transfers in to Level 3 | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Maturities, calls and paydowns | 0 | 0 | 0 | 0 |
Amortization of discount | 0 | 0 | 0 | 0 |
Total gains or losses (realized/unrealized)-Included in earnings | (12) | 9 | (6) | 9 |
Total gains or losses (realized/unrealized)-Included in other comprehensive income | 0 | 0 | 0 | 0 |
Ending balance | $ 5 | $ 16 | $ 5 | $ 16 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Thousands | Jun. 30, 2024 USD ($) security | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) security | Jun. 30, 2023 USD ($) security | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) security |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Number of equity securities held | security | 1 | 1 | 1 | 1 | ||
Recurring basis | Available-for-sale fixed maturity securities and equity securities | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Asset value | $ | $ 5 | $ 17 | $ 11 | $ 16 | $ 7 | $ 7 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of the Carrying Value and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||||
Fixed maturity securities, available-for-sale | $ 1,114,475 | $ 1,324,476 | ||
Equity securities | 128,564 | 119,945 | ||
Bank loan participations | 165,280 | 156,169 | ||
Cash and cash equivalents | 672,523 | 274,298 | ||
Restricted cash equivalents | 27,963 | 72,449 | $ 105,502 | $ 103,215 |
Short-term investments | 45,977 | 72,137 | ||
Liabilities | ||||
Senior debt | 200,800 | 222,300 | ||
Junior subordinated debt | 104,055 | 104,055 | ||
Carrying Value | ||||
Assets | ||||
Fixed maturity securities, available-for-sale | 1,114,475 | 1,324,476 | ||
Equity securities | 128,564 | 119,945 | ||
Bank loan participations | 165,280 | 156,169 | ||
Cash and cash equivalents | 672,523 | 274,298 | ||
Restricted cash equivalents | 27,963 | 72,449 | ||
Short-term investments | 45,977 | 72,137 | ||
Other invested assets – notes receivable | 14,180 | 12,174 | ||
Liabilities | ||||
Senior debt | 200,800 | 222,300 | ||
Junior subordinated debt | 104,055 | 104,055 | ||
Fair Value | ||||
Assets | ||||
Fixed maturity securities, available-for-sale | 1,114,475 | 1,324,476 | ||
Equity securities | 128,564 | 119,945 | ||
Bank loan participations | 165,280 | 156,169 | ||
Cash and cash equivalents | 672,523 | 274,298 | ||
Restricted cash equivalents | 27,963 | 72,449 | ||
Short-term investments | 45,977 | 72,137 | ||
Other invested assets – notes receivable | 13,041 | 11,702 | ||
Liabilities | ||||
Senior debt | 207,465 | 233,408 | ||
Junior subordinated debt | $ 132,657 | $ 138,264 |
Series A Preferred Shares (Deta
Series A Preferred Shares (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | ||||
Jul. 01, 2024 USD ($) | Feb. 24, 2022 USD ($) d $ / shares shares | Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2023 USD ($) | Dec. 31, 2023 $ / shares | |
Temporary Equity [Line Items] | |||||
Series A convertible preferred shares, par value (in dollars per share) | $ 0.00125 | $ 0.00125 | |||
Dividends on Series A preferred shares | $ | $ 5,250 | $ 7,875 | |||
Convertible Preferred Stock | Private Placement | |||||
Temporary Equity [Line Items] | |||||
Number of shares issued during period (in shares) | shares | 150,000 | ||||
Preferred stock, dividend rate, percentage | 7% | ||||
Series A convertible preferred shares, par value (in dollars per share) | $ 0.00125 | ||||
Sale of stock, consideration received on transaction | $ | $ 150,000 | ||||
Per share price (in dollars per share) | $ 1,000 | ||||
Liquidation preference (in dollars per share) | $ 1,000 | ||||
Preferred stock, dividend term | 5 years | ||||
Preferred stock, dividend payment rate, variable spread | 5.20% | ||||
Dividends on Series A preferred shares | $ | $ 5,300 | $ 7,900 | |||
Preferred stock, convertible, conversion price | $ 26.5950 | ||||
Convertible preferred stock, shares issued upon conversion | shares | 5,640,158 | ||||
Preferred stock, convertible, floor conversion price | $ 21.902 | ||||
Preferred stock, convertible, term | 2 years | ||||
Percentage of then-applicable conversion price threshold | 130% | ||||
Number of trading days | d | 20 | ||||
Preferred stock, discount rate, percentage | 3.50% | ||||
Number of trading days immediately preceding Mandatory Conversion | d | 5 | ||||
Issuance costs | $ | $ 5,100 | ||||
Proceeds from issuance of Series A preferred shares | $ | $ 144,900 | ||||
Convertible Preferred Stock | Private Placement | Subsequent Event | |||||
Temporary Equity [Line Items] | |||||
Dividends on Series A preferred shares | $ | $ 2,600 | ||||
Series A Preferred Stock | Private Placement | Common Shares | |||||
Temporary Equity [Line Items] | |||||
Common stock, covenant, threshold (in dollars per share) | $ 0.05 | ||||
Common stock, covenant, threshold, cash paid (in dollars per share) | $ 0.10 |
Capital Stock and Equity Awar_3
Capital Stock and Equity Awards - Common Shares (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares outstanding (in shares) | 37,825,767 | 37,825,767 | 37,641,563 | ||||
RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock unit dividend equivalents | $ 96 | $ 81 | |||||
Dividends payable | $ 221 | $ 221 | $ 255 | ||||
Common stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares outstanding (in shares) | 37,825,767 | 37,825,767 | 37,619,226 | 37,822,340 | 37,641,563 | 37,619,226 | 37,470,237 |
Vesting of RSUs (in shares) | 3,427 | 184,204 | 148,989 |
Capital Stock and Equity Awar_4
Capital Stock and Equity Awards - Schedule of Cash Dividends Declared (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||||
Jun. 28, 2024 | Apr. 25, 2024 | Mar. 29, 2024 | Feb. 15, 2024 | Jun. 30, 2023 | Apr. 27, 2023 | Mar. 31, 2023 | Feb. 16, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | ||||||||||||
Dividend declared per share (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.10 | ||||
Total Amount | $ 1,938,439 | $ 1,940,410 | $ 1,921,040 | $ 1,921,802 | $ 3,878,849 | $ 3,842,842 |
Capital Stock and Equity Awar_5
Capital Stock and Equity Awards - Equity Incentive Plans (Details) - shares | Jun. 30, 2024 | Jul. 26, 2022 |
PRSU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares to be received per PRSU (in shares) | 1 | |
Payout for achievement, threshold | 50% | |
Payout for achievement, target | 100% | |
Payout for achievement, maximum | 200% | |
2014 LTIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares available for issuance (in shares) | 4,982,650 | |
Number of shares available for grant (in shares) | 1,166,127 | |
2014 Director Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares available for issuance (in shares) | 150,000 | |
Number of shares available for grant (in shares) | 36,387 |
Capital Stock and Equity Awar_6
Capital Stock and Equity Awards - Schedule of Option Activity (Details) - Options - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Shares | ||
Beginning of period (in shares) | 74,390 | 287,974 |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | 0 | 0 |
Forfeited (in shares) | 0 | (45,106) |
Lapsed (in shares) | (74,390) | (164,548) |
End of period (in shares) | 0 | 78,320 |
Exercisable, end of period (in shares) | 0 | 78,320 |
Weighted- Average Exercise Price | ||
Beginning of period (in dollars per share) | $ 42.17 | $ 35.26 |
Granted (in dollars per share) | 0 | 0 |
Exercised (in dollars per share) | 0 | 0 |
Forfeited (in dollars per share) | 0 | 34.92 |
Lapsed (in dollars per share) | 42.17 | 32.07 |
End of period (in dollars per share) | 0 | 42.17 |
Exercisable, end of period (in dollars per share) | $ 0 | $ 42.17 |
Capital Stock and Equity Awar_7
Capital Stock and Equity Awards - Schedule of RSU Activity (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
RSUs | ||
Shares | ||
Unvested, beginning of period (in shares) | 751,254 | 665,458 |
Granted (in shares) | 537,060 | 363,484 |
Vested (in shares) | (268,993) | (212,128) |
Forfeited (in shares) | (76,305) | (15,233) |
Unvested, end of period (in shares) | 943,016 | 801,581 |
Weighted- Average Grant Date Fair Value | ||
Unvested, beginning of period (in dollars per share) | $ 23.48 | $ 25.98 |
Granted (in dollars per share) | 9.76 | 24.83 |
Vested (in dollars per share) | 25.11 | 28.93 |
Forfeited (in dollars per share) | 15.56 | 23.10 |
Unvested, end of period (in dollars per share) | $ 15.84 | $ 24.73 |
Vesting period (in years) | 3 years | |
RSUs | Non-employee directors | ||
Weighted- Average Grant Date Fair Value | ||
Vesting period (in years) | 1 year | |
PRSU | ||
Shares | ||
Granted (in shares) | 231,492 | 91,818 |
Weighted- Average Grant Date Fair Value | ||
Vesting period (in years) | 3 years |
Capital Stock and Equity Awar_8
Capital Stock and Equity Awards - Schedule of Share Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | ||||
Share based compensation expense | $ 1,553 | $ 2,316 | $ 4,228 | $ 5,008 |
U.S. tax benefit on share based compensation expense | $ 293 | $ 427 | $ 790 | $ 943 |
Capital Stock and Equity Awar_9
Capital Stock and Equity Awards - Compensation Expense (Details) - RSUs $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share based compensation expense | $ 10 |
Weighted-average period of unrecognized share based compensation expense | 1 year 10 months 24 days |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 30, 2024 | Sep. 16, 2024 | Sep. 15, 2024 | Jul. 02, 2024 | Jul. 25, 2024 |
Convertible Preferred Stock | Forecast | |||||
Subsequent Event [Line Items] | |||||
Dividend payable, record date | Sep. 15, 2024 | ||||
Subsequent Event | Convertible Preferred Stock | |||||
Subsequent Event [Line Items] | |||||
Dividends payable | $ 2.6 | ||||
Subsequent Event | Convertible Preferred Stock | Forecast | |||||
Subsequent Event [Line Items] | |||||
Dividends payable, date to be paid | Sep. 30, 2024 | ||||
Subsequent Event | Loss Portfolio Transfer And Adverse Development Cover Reinsurance Transaction | Excess and Surplus Lines | |||||
Subsequent Event [Line Items] | |||||
Reinsure excess amount | $ 716.6 | ||||
Reinsurance, aggregate coverage limit | 467.1 | ||||
Ceded premiums payable | $ 313.2 | ||||
Profit commission percentage | 50% | ||||
Carried reserve percentage | 104.50% | ||||
Profit commission amount | $ 87 | ||||
Subsequent Event | Loss Portfolio Transfer And Adverse Development Cover Reinsurance Transaction | State National | Excess and Surplus Lines | |||||
Subsequent Event [Line Items] | |||||
Reinsure percentage | 85% | ||||
Reinsurance, aggregate coverage limit | $ 397 | ||||
Subsequent Event | Common Shares | |||||
Subsequent Event [Line Items] | |||||
Cash dividend declared (in dollars per share) | $ 0.05 | ||||
Subsequent Event | Common Shares | Forecast | |||||
Subsequent Event [Line Items] | |||||
Dividends payable, date to be paid | Sep. 30, 2024 | ||||
Dividend payable, record date | Sep. 16, 2024 |