ProSight Global (PROS) 10-Q 8 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 08, 2019
Document and Entity Information
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Entity Registrant Name	ProSight Global, Inc.
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		42,999,027
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001634038
Amendment Flag	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets
Fixed income securities, available-for-sale at fair value (amortized cost $1,855,160 in 2019 and $1,729,755 in 2018)	$ 1,883,989	$ 1,693,382
Commercial levered loans at amortized cost (fair value $16,168 in 2019 and $15,858 in 2018)	16,549	16,915
Limited partnerships and limited liability companies at fair value (cost $58,387 in 2019 and $51,903 in 2018)	62,351	53,432
Short-term investments	49,824	36,661
Total investments	2,012,713	1,800,390
Cash and cash equivalents	34,241	22,279
Restricted cash	8,929	7,621
Accrued investment income	13,314	12,279
Premiums and other receivables, net	196,128	200,347
Receivable from reinsurers on paid losses	9,927	12,428
Reinsurance receivable on unpaid losses	210,021	185,295
Deferred policy acquisition costs	101,740	93,613
Prepaid reinsurance premiums	59,218	44,626
Net deferred income taxes	13,724	33,239
Goodwill and net intangible assets	29,204	29,219
Fixed assets and capitalized software, net	38,145	39,001
Funds withheld related to sale of affiliate	19,534	19,397
Other assets	33,328	57,653
Assets of discontinued operations	19,278	19,719
Total assets	2,799,444	2,577,106
Liabilities
Reserve for unpaid losses and loss adjustment expenses	1,483,660	1,396,812
Reserve for unearned premiums	472,907	435,933
Ceded reinsurance payable	15,987	13,281
Notes payable, net of debt issuance costs	182,517	182,355
Funds held under reinsurance agreements	72,362	63,165
Other liabilities	91,293	73,474
Liabilities of discontinued operations	21,768	22,256
Total liabilities	2,340,494	2,187,276
Stockholders’ equity
Preferred stock, $0.01 par value; 50,000,000 shares authorized; no shares issued or outstanding
Common stock, $0.01 par value; 200,000,000 shares authorized; 38,864,289 shares issued and 38,851,369 shares outstanding	389	389
Paid-in capital	603,163	607,260
Accumulated other comprehensive income (loss)	28,844	(22,315)
Retained deficit	(173,246)	(195,304)
Treasury shares - at cost (12,920 shares)	(200)	(200)
Total stockholders’ equity	458,950	389,830
Total liabilities and stockholders’ equity	$ 2,799,444	$ 2,577,106

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Fixed income securities, available-for-sale, amortized cost	$ 1,855,160	$ 1,729,755
Commercial levered loans, fair value	16,168	15,858
Limited partnerships and limited liability companies, cost	$ 58,387	$ 51,903
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	38,864,289	38,864,289
Common stock, shares outstanding	38,851,369	38,851,369
Treasury shares, shares	12,920	12,920

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements of Operations
Gross written premiums	$ 235,032	$ 222,555	$ 490,870	$ 471,975
Net premiums earned	202,480	183,123	398,088	350,579
Net investment income	17,398	15,548	34,556	29,257
Realized investment gains, net	137	686	250	399
Other income	97	168	190	336
Total revenues	220,112	199,525	433,084	380,571
Expenses:
Net losses and loss adjustment expenses incurred	127,115	109,933	245,448	211,787
Policy acquisition expenses	45,533	43,253	92,106	81,624
General and administrative expenses	26,028	24,880	53,222	50,102
Interest expense	3,147	3,084	6,509	6,115
Other expense	7,170		7,170
Total expenses	208,993	181,150	404,455	349,628
Income from continuing operations before income taxes	11,119	18,375	28,629	30,943
Income tax provision:
Current	82	(397)	223	(404)
Deferred	2,341	4,120	6,015	6,685
Total income tax expense	2,423	3,723	6,238	6,281
Net income from continuing operations	8,696	14,652	22,391	24,662
Discontinued operations:
Net (loss) income from discontinued operations	(78)	(198)	(333)	587
Net income	$ 8,618	$ 14,454	$ 22,058	$ 25,249
Earnings per share - basic:
Net income from continuing operations	$ 0.22	$ 0.38	$ 0.58	$ 0.64
Net income	0.22	0.37	0.57	0.66
Earnings per share – diluted:
Net income from continuing operations	0.22	0.37	0.57	0.63
Net income	$ 0.22	$ 0.36	$ 0.56	$ 0.64

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited ) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements of Comprehensive Income (Loss)
Net income	$ 8,618	$ 14,454	$ 22,058	$ 25,249
Other comprehensive income (loss), net of taxes:
Change in unrealized holding gains (losses) on securities, net of deferred tax expense (benefit) of $6,206 and $13,447 in 2019 and $(2,769) and $(8,425) in 2018	23,624	(10,499)	51,186	(31,606)
Less reclassification adjustment for gains included in net income, net of tax (benefit) expense of $(28) and $(52) in 2019 and $45 and $(109) in 2018	217	731	27	1,083
Other comprehensive income (loss)	23,407	(11,230)	51,159	(32,689)
Comprehensive income	$ 32,025	$ 3,224	$ 73,217	$ (7,440)

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements of Comprehensive Income (Loss)
Change in unrealized holding (losses) gains on securities, deferred tax expense (benefit)	$ 6,206	$ (2,769)	$ 13,447	$ (8,425)
Reclassification adjustment for (losses) gains included in net income, tax expense (benefit)	$ (28)	$ 45	$ (52)	$ (109)

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited ) - USD ($) $ in Thousands	Common Stock	Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Deficit	Treasury Shares	Total
Balance at the beginning of the period at Dec. 31, 2017	$ 387	$ 606,346	$ 19,297	$ (249,847)	$ (200)	$ 375,983
Increase (decrease) in Stockholders' Equity
Stock based employee compensation plan		238				238
New unrealized gain (loss) on investment securities, net of deferred tax expense (benefit)			(21,459)			(21,459)
Net income				10,795		10,795
Balance at the end of the period at Mar. 31, 2018	387	606,584	(2,162)	(239,052)	(200)	365,557
Balance at the beginning of the period at Dec. 31, 2017	387	606,346	19,297	(249,847)	(200)	375,983
Increase (decrease) in Stockholders' Equity
Net income						25,249
Balance at the end of the period at Jun. 30, 2018	387	606,744	(13,392)	(224,598)	(200)	368,941
Balance at the beginning of the period at Mar. 31, 2018	387	606,584	(2,162)	(239,052)	(200)	365,557
Increase (decrease) in Stockholders' Equity
Stock based employee compensation plan		160				160
New unrealized gain (loss) on investment securities, net of deferred tax expense (benefit)			(11,230)			(11,230)
Net income				14,454		14,454
Balance at the end of the period at Jun. 30, 2018	387	606,744	(13,392)	(224,598)	(200)	368,941
Balance at the beginning of the period at Dec. 31, 2018	389	607,260	(22,315)	(195,304)	(200)	389,830
Increase (decrease) in Stockholders' Equity
Stock based employee compensation plan		77				77
New unrealized gain (loss) on investment securities, net of deferred tax expense (benefit)			27,752			27,752
Equity distribution		(4,174)				(4,174)
Net income				13,440		13,440
Balance at the end of the period at Mar. 31, 2019	389	603,163	5,437	(181,864)	(200)	426,925
Balance at the beginning of the period at Dec. 31, 2018	389	607,260	(22,315)	(195,304)	(200)	389,830
Increase (decrease) in Stockholders' Equity
Net income						22,058
Balance at the end of the period at Jun. 30, 2019	389	603,163	28,844	(173,246)	(200)	458,950
Balance at the beginning of the period at Mar. 31, 2019	389	603,163	5,437	(181,864)	(200)	426,925
Increase (decrease) in Stockholders' Equity
New unrealized gain (loss) on investment securities, net of deferred tax expense (benefit)			23,407			23,407
Net income				8,618		8,618
Balance at the end of the period at Jun. 30, 2019	$ 389	$ 603,163	$ 28,844	$ (173,246)	$ (200)	$ 458,950

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited ) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018
Statement of Stockholders' Equity
Net unrealized (loss) on investment securities, deferred tax (benefit)	$ 6,234	$ 7,265	$ (2,814)	$ (5,502)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited ) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Operating activities
Net income from continuing operations	$ 22,391	$ 24,662
Net (loss) income from discontinued operations	(333)	587
Net Income	22,058	25,249
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for deferred taxes	6,015	6,685
Net realized investment gains	(250)	(399)
Net limited partnerships gains	(2,449)	(2,825)
Net accretion from bonds and commercial loans	(2,227)	(2,080)
Depreciation and amortization	4,131	3,368
Amortization of debt issuance costs	162	169
Stock based compensation	77	398
Changes in:
Premiums and other receivables	4,219	(60,746)
Receivable from reinsurers on paid losses and reinsurance receivable from unpaid losses	(22,225)	(6,141)
Ceded reinsurance payable	2,706	24,185
Accrued investment income	(1,035)	(3,643)
Deferred policy acquisition costs	(8,127)	(35,010)
Prepaid reinsurance premiums	(14,592)	58,366
Reserve for unpaid losses and loss adjustment expenses	86,848	68,684
Reserve for unearned premiums	36,974	80,474
Funds withheld related to sale of affiliate	(137)	(85)
Funds held under reinsurance agreements	9,197	(43,061)
Other assets	20,149	8,757
Other liabilities	17,819	8,703
Total adjustments	137,255	105,799
Net cash provided by operating activities – continuing operations	159,646	130,461
Net cash (used in) provided by operating activities – discontinued operations	(305)	2,986
Net cash provided by operating activities	159,341	133,447
Investing activities
Purchases of available-for-sale fixed income securities	(221,287)	(201,987)
Sales of available-for-sale fixed income securities	32,791	73,779
Redemptions of available-for-sale fixed income securities	64,310	46,330
Purchases of commercial levered loans		(2,612)
Redemptions of commercial levered loans	350	8,346
Purchases of limited partnerships	(8,244)	(27,049)
Distributions and redemptions from limited partnerships	1,775	2,080
Purchases of short-term investments	(241,574)	(80,868)
Sales of short-term investments	228,765	28,615
Acquisition of fixed assets and capitalized software	(3,260)	(4,607)
Net cash used in investing activities - continuing operations	(146,374)	(157,973)
Net cash provided by (used in) investing activities - discontinued operations	(320)	2,031
Net cash used in investing activities	(146,694)	(155,942)
Net change in cash and cash equivalents	12,647	(22,495)
Cash, cash equivalents and restricted cash at beginning of year - continuing operations	29,900	77,872
Cash, cash equivalents and restricted cash at beginning of year - discontinued operations	1,034	1,322
Less: cash, cash equivalents and restricted cash at end of period - discontinued operations	(411)	(6,318)
Cash, cash equivalents and restricted cash at end of period - continuing operations	$ 43,170	$ 50,381

Basis of Reporting

Basis of Reporting	6 Months Ended
	Jun. 30, 2019
Basis of Reporting
Basis of Reporting	1. Basis of Reporting The accompanying unaudited interim consolidated financial statements of ProSight Global, Inc. (the Company) have been prepared in conformity 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 unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2018, included in the Company’s final prospectus filed with the Securities and Exchange Commission (SEC) pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the Securities Act) on July 25, 2019 (the Prospectus). In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included. Such adjustments consist only of normal recurring items. All significant intercompany balances and transactions have been eliminated in consolidation. Interim results are not necessarily indicative of results of operations for the full year. Reorganization The Company was incorporated in Delaware in 2010. Prior to July 25, 2019, the Company was a wholly-owned subsidiary of ProSight Global Holdings Limited (PGHL), a Bermuda holding company. Effective July 25, 2019, prior to the completion of the Company’s initial public offering (IPO), PGHL merged with and into the Company, with the Company surviving the merger (the merger). The prior holders of PGHL’s equity interests then outstanding received, as merger consideration, the right to receive 6.46 shares of the Company’s common stock for each such outstanding PGHL equity interest. The total merger consideration was 38,851,369 shares of the Company’s common stock, which then comprised 100% of the shares of the Company’s outstanding common stock. As a result of the merger, the assets and liabilities of the Company include, effective July 25, 2019, the assets and liabilities of PGHL. In addition, on July 24, 2019, in connection with the merger, the Company’s duly adopted amended and restated certificate of incorporation (the Certificate of Incorporation) became effective, providing for, among other things, the authorization of 200,000,000 shares of common stock and 50,000,000 shares of preferred stock. All share and per share amounts in the unaudited interim consolidated financial statements and related notes have been restated for all historical periods presented to give effect to the merger and related conversion of shares, including reclassifying an amount equal to the change in value of common stock to additional paid-in capital, as well as the effectiveness of the Certificate of Incorporation. Prior to the merger, PGHL’s subsidiaries ProSight Specialty International Holdings Limited (PSIH) and ProSight Specialty European Holdings Limited (PSEH) were merged with and into the Company, effective February 5, 2019. Additionally, effective February 5, 2019, ProSight Specialty Bermuda Limited (PSBL) became a wholly owned subsidiary of the Company. Prior to February 5, 2019, PSBL was a wholly owned subsidiary of PSEH. Use of Estimates The preparation of the unaudited interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the financial statement balances, as well as disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Management periodically reviews its estimates and assumptions.

Recently Adopted Accounting Sta

Recently Adopted Accounting Standards	6 Months Ended
	Jun. 30, 2019
Recently Adopted Accounting Standards
Recently Adopted Accounting Standards	2. Recently Adopted Accounting Standards No Accounting Standards Updates (ASU) have been adopted during the six months ended June 30, 2019. Accounting Guidance Not Yet Adopted In January 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-01, Financial Instruments – Overall, Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-01 provides guidance to improve certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Specifically the guidance: (i) requires equity investments to be measured at fair value with changes in fair value recognized in earnings; (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost; (iv) requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and (v) clarifies that the need for a valuation allowance on a deferred tax asset related to an available-for-sale (AFS) security should be evaluated with other deferred tax assets. The Company shall apply ASU 2016-01 by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. ASU 2016-01 is effective for public entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. For the Company, ASU 2016-01 is effective for annual periods beginning after December 15, 2018 and interim periods within annual periods beginning after December 15, 2019. The Company is currently evaluating the impact of ASU 2016-01 on its financial condition and results of operations. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to improve the financial reporting of leasing transactions. Under this ASU, lessees will recognize a right-of-use asset and corresponding liability on the balance sheet for all leases, except for leases covering a period of fewer than 12 months. The liability is to be measured as the present value of the future minimum lease payments taking into account renewal options if applicable plus initial incremental direct costs such as commissions. The minimum payments are discounted using the rate implicit in the lease or, if not known, the lessee’s incremental borrowing rate. The lessee’s income statement treatment for leases will vary depending on the nature of what is being leased. A financing type lease is present when, among other matters, the asset is being leased for a substantial portion of its economic life or has an end-of-term title transfer or a bargain purchase option as in today’s practice. The payment of the liability set up for such leases will be apportioned between interest and principal; the right-of use asset will be generally amortized on a straight-line basis. If the lease does not qualify as a financing type lease, it will be accounted for on the income statement as rent on a straight-line basis. ASU 2016-02 requires the application of a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. ASU 2016-02 is effective for public entities for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. For the Company, ASU 2016-02 is effective for annual periods beginning after December 15, 2019 and interim periods within annual periods beginning after December 15, 2020. The Company is currently evaluating ASU 2016-02, and does not expect a material impact on its financial condition or results of operations from the adoption of this guidance. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, Measurement of Credit Losses on Financial Instruments . ASU 2016-13 will change the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, held-to-maturity debt securities, trade receivables, and reinsurance receivables. ASU 2016-13 requires a valuation allowance to be calculated on these financial assets and that they be presented on the financial statements net of the valuation allowance. The valuation allowance is a measurement of expected losses that is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This methodology is referred to as the current expected credit loss model. ASU 2016-13 is effective for public entities annual periods beginning after December 15, 2019, including interim periods within those annual periods, with early adoption permitted. For the Company, ASU 2016-13 is effective for annual periods beginning after December 15, 2020 and interim periods within annual periods beginning after December 15, 2021. The Company is currently evaluating the impact of ASU 2016-13 on its financial condition and results of operations. In October 2016, the FASB issued ASU 2016-16, Income Taxes, Intra-Entity Transfers of Assets Other Than Inventory . ASU 2016-16 requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than when the asset has been sold to an outside party. ASU 2016-16 should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. ASU 2016-16 is effective for public entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. For the Company, ASU 2016-16 is effective for annual periods beginning after December 15, 2018 and interim periods within annual periods beginning after December 15, 2019. The Company is currently evaluating ASU 2016-16 and does not expect a material impact on its financial condition or results of operations. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements for fair value measurements. The modifications removed the following disclosure requirements: (i) the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy; (ii) the policy for timing of transfers between levels; and (iii) the valuation processes for Level 3 fair value measurements. This ASU added the following disclosure requirements: (i) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and (ii) the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements. This update shall be applied retrospectively and is effective for all entities annual and interim periods beginning after December 15, 2019, with early adoption permitted. As the requirements of this literature are disclosure only, ASU 2018-13 will not impact the Company’s financial condition or results of operations. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 provides the option to apply prospectively to costs for activities performed on or after the date that the entity first adopts or retrospectively in accordance with guidance on accounting changes. ASU 2018-15 is effective for public entities for annual periods beginning after December 15, 2019, including interim periods within those annual periods, with early adoption permitted. For the Company, ASU 2018-15 is effective for annual periods beginning after December 15, 2020 and interim periods within annual periods beginning after December 15, 2021. The Company is currently evaluating the impact of this guidance on its financial condition or results of operations.

Supplemental Cash Flow

Supplemental Cash Flow	6 Months Ended
	Jun. 30, 2019
Supplemental Cash Flow
Supplemental Cash Flow	3. Supplemental Cash Flow Supplemental cash flow information for the six months ended June 30, 2019 and 2018, is as follows: Six Months Ended June 30 ($ in thousands) 2019 2018 Cash paid during the period for: Interest $ 6,566 $ 6,105

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2019
Discontinued Operations
Discontinued Operations	4. Discontinued Operations In March 2017, the Company announced its exit from the U.K. insurance market. The financial results and subsequent expenses directly attributable to U.K. operations are included in the Company’s financial statements and classified within discontinued operations for all periods presented. Net loss for discontinued operations was $0.1 million and $0.3 million for the three and six months ended June 30, 2019, respectively. Net loss for discontinued operations was $0.2 million and net income for discontinued operations was $0.6 million for the three and six months ended June 30, 2018, respectively. The following represents the carrying amounts of assets and liabilities associated with the exit from the insurance market in the U.K. reported as discontinued operations in its consolidated balance sheet: June 30, December 31, ($ in thousands) 2019 2018 Assets Total cash and investments $ 10,250 $ 10,436 Other assets 9,028 9,283 Total assets $ 19,278 $ 19,719 Liabilities Unpaid losses and loss adjustment expenses $ 13,917 $ 14,030 Other liabilities 7,851 8,226 Total liabilities $ 21,768 $ 22,256

Investments

Investments	6 Months Ended
	Jun. 30, 2019
Investments
Investments	5. Investments Fixed income securities may include U.S. Treasury securities, government agency securities, municipal debt obligations, residential mortgage backed securities (RMBS), commercial mortgage backed securities (CMBS), collateralized loan obligations (CLO), asset backed securities (ABS) and corporate debt securities. (a) The gross unrealized gains and losses on AFS securities included in assets from continuing operations at June 30, 2019, are as follows: Cost/ Gross Gross Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value Fixed income securities: U.S. Treasury securities $ 84,377 $ 901 $ (191) $ 85,087 Government agency securities 473 — — 473 Corporate debt securities 1,300,218 21,985 (5,838) 1,316,365 Municipal debt obligations 8,274 217 — 8,491 ABS 86,573 1,212 (231) 87,554 CLO 173,538 212 (1,609) 172,141 CMBS 65,174 1,489 (102) 66,561 RMBS - non-agency 66,350 10,916 (118) 77,148 RMBS - agency 70,183 464 (478) 70,169 Total fixed income securities $ 1,855,160 $ 37,396 $ (8,567) $ 1,883,989 The gross unrealized gains and losses on AFS securities included in assets from continuing operations at December 31, 2018, are as follows: Cost/ Gross Gross Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value Fixed income securities: U.S. Treasury securities $ 92,219 $ 126 $ (2,017) $ 90,328 Corporate debt securities 1,231,352 1,216 (40,138) 1,192,430 Municipal debt obligations 6,238 — (153) 6,085 ABS 82,603 1,095 (117) 83,581 CLO 161,421 160 (4,668) 156,913 CMBS 55,980 — (2,137) 53,843 RMBS - non-agency 68,594 11,078 (121) 79,551 RMBS - agency 31,348 — (697) 30,651 Total fixed income securities $ 1,729,755 $ 13,675 $ (50,048) $ 1,693,382 (b) The following table summarizes all securities in an unrealized loss position at June 30, 2019, the fair value and gross unrealized loss by asset class and by length of time those securities have been in a loss position: Less Than 12 Months Greater Than 12 Months Total Total Fair Unrealized Fair Unrealized Total Unrealized ($ in thousands) Value Losses Value Losses Fair Value Losses U.S. Treasury securities $ 2,499 $ (5) $ 41,771 $ (186) $ 44,270 $ (191) Corporate debt securities 119,250 (1,646) 179,264 (4,192) 298,514 (5,838) ABS 30,311 (208) 2,795 (23) 33,106 (231) CLO 81,999 (552) 56,217 (1,057) 138,216 (1,609) CMBS 1,000 — 9,611 (102) 10,611 (102) RMBS - non-agency 1,104 (11) 2,703 (107) 3,807 (118) RMBS - agency 12,456 (308) 5,490 (170) 17,946 (478) Total $ 248,619 $ (2,730) $ 297,851 $ (5,837) $ 546,470 $ (8,567) The following table summarizes all securities in an unrealized loss position at December 31, 2018, the fair value and gross unrealized loss by asset class and by length of time those securities have been in a loss position: Less Than 12 Months Greater Than 12 Months Total Total Fair Unrealized Fair Unrealized Total Unrealized ($ in thousands) Value Losses Value Losses Fair Value Losses U.S. Treasury securities $ 8,263 $ (82) $ 69,727 $ (1,935) $ 77,990 $ (2,017) Corporate debt securities 393,931 (10,241) 710,482 (29,897) 1,104,413 (40,138) Municipal debt obligations — — 6,085 (153) 6,085 (153) ABS 25,258 (61) 4,249 (56) 29,507 (117) CLO 146,004 (4,668) — — 146,004 (4,668) CMBS — — 53,843 (2,137) 53,843 (2,137) RMBS - non-agency 529 (13) 2,449 (108) 2,978 (121) RMBS - agency 27,150 (513) 3,502 (184) 30,652 (697) Total $ 601,135 $ (15,578) $ 850,337 $ (34,470) $ 1,451,472 $ (50,048) The Company was holding 412 and 708 fixed income securities that were in an unrealized loss position as of June 30, 2019 and December 31, 2018, respectively. The Company believes these unrealized losses are temporary, as they resulted from changes in market conditions, including interest rates or sector spreads, and are not considered to be credit risk related. Other-than-temporary impairments (OTTI) charges are recognized as a realized loss to the extent that they are credit related, unless the Company has the intent to sell the security or it is more-likely-than not that the Company will be required to sell the security. In those circumstances, the security is written down to fair value with the entire amount of the write-down charged to earnings as a component of realized losses. The Company had no OTTI charges for the three and six months ended June 30, 2019 and 2018. (c) The amortized cost and fair value of fixed income securities, which excludes the Company’s structured securities portfolio, at June 30, 2019, by contractual maturity are shown below. Expected maturities will differ from contractual maturities, because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2019 Amortized Fair ($ in thousands) Cost Value Due in one year or less $ 85,287 $ 85,352 Due after one through five years 724,384 731,504 Due after five through ten years 499,428 510,299 Due after ten years 84,243 83,261 1,393,342 1,410,416 Structured securities: ABS 86,573 87,554 CLO 173,538 172,141 CMBS 65,174 66,561 RMBS - non-agency 66,350 77,148 RMBS - agency 70,183 70,169 Total $ 1,855,160 $ 1,883,989 The Company did not have any non-income producing fixed income investments as of June 30, 2019 and December 31, 2018, respectively. (d) The Company elected to account for its investments in limited partnerships and limited liability companies of $62.4 million and $53.4 million at June 30, 2019 and December 31, 2018, respectively, at fair value. Changes in fair value of such investments are recorded in the consolidated statements of operations within net investment income. The largest investment within the portfolio is the PIMCO Tactical Opportunities fund, which is carried at $32.0 million at June 30, 2019. The carrying values used for investment in limited partnerships and limited liability companies generally are established on the basis of the valuations provided monthly or quarterly by the managers of such investments. These valuations are determined based upon the valuation criteria established by the governing documents of such investments or utilized in the normal course of such manager’s business, which are reflective of fair value. Such valuations may differ significantly from the values that would have been used had available markets for these investments existed and the differences could be material. The Company’s strategies for its investments in limited partnerships and limited liability companies include investment funds that employ diverse and fundamentally driven approaches to investing which include effective risk management, hedging strategies and leverage. The portfolio of investments in limited partnerships and limited liability companies consists of common stocks, real estate assets, options, swaps, derivative instruments and other structured products. The limited partnerships and limited liability companies in which the Company invests sometimes impose limitations on the timing of withdrawals from the funds. The Company’s inability to withdraw its investment quickly from a particular limited partnership or a limited liability company that is performing poorly could result in losses and may affect liquidity. All of the Company’s limited partnerships and limited liability companies have timing limitations. Most limited partnerships and limited liability companies require a 90-day notice period in order to withdraw funds. Some limited partnerships and limited liability companies may require a withdrawal only at the end of their fiscal year. The Company may also be subject to withdrawal fees in the event the limited partnerships and limited liability companies is sold within a minimum holding period, which may be up to one year. Many limited partnerships and limited liability companies have invoked gated provisions that allow the fund to disperse redemption proceeds to investors over an extended period. The Company is subject to such restrictions, which may delay the receipt of proceeds from limited partnerships and limited liability companies. (e) The Company invests in commercial levered loans, which are private placements. Loans are reported at the principal amount outstanding, reduced by unearned discounts, net deferred loan fees, and an allowance for loan losses. Interest on loans is calculated using the simple interest method on the daily principal amount outstanding. The allowance for loan losses related to impaired loans is determined based on the difference of the carrying value of loans and the present value of expected cash flows discounted at the loan’s effective interest rate or, as a practical expedient, the loan’s observable market price. There was no allowance for loan losses at June 30, 2019 and December 31, 2018, respectively. (f) Proceeds from sales and redemptions in AFS securities totaled $53.7 million and $57.1 million for the three months ended June 30, 2019 and 2018, respectively. Proceeds from sales and redemptions in AFS securities totaled $97.1 million and $120.1 million for the six months ended June 30, 2019 and 2018, respectively. Gross realized gains from sales and redemptions in AFS securities totaled $0.4 million and $0.7 million for the three months ended June 30, 2019 and 2018, respectively, and $0.6 million and $0.8 million for the six months ended June 30, 2019 and 2018, respectively. Gross realized losses from sales and redemptions of AFS investments totaled $0.3 million and an insignificant amount for the three months ended June 30, 2019 and 2018, respectively, and $0.4 million for the six months ended June 30, 2019 and 2018. (g) Net investment income included in net income from continuing operations in the consolidated statements of operations from each major category of investments for the three and six months ended June 30, 2019 and 2018, is as follows: ($ in thousands) Three Months Ended June 30 Six Months Ended June 30 2019 2018 2019 2018 Fixed income securities $ 16,531 $ 14,016 $ 32,650 $ 26,408 Commercial levered loans 159 301 378 665 Net limited partnerships gains 1,143 1,563 2,394 2,825 Other 92 6 181 23 Gross investment income 17,925 15,886 35,603 29,921 Less: expenses 527 338 1,047 664 Net investment income $ 17,398 $ 15,548 $ 34,556 $ 29,257 (h) Included in investments at June 30, 2019 and December 31, 2018, are securities required to be held by the Company (or those that are on deposit) with various regulatory authorities as required by law with a fair value of $211.2 million and $188.6 million, respectively. Fair value and carrying value of assets in the amount of $358.4 million and $347.4 million, respectively, were on deposit in collateral agreements at June 30, 2019. Fair value and carrying value of assets in the amount of $358.5 million and $368.0 million, respectively, were on deposit in collateral agreements at December 31, 2018. (i) The investment portfolio has exposure to market risks, which include the effect of adverse changes in interest rates, credit quality, limited partnership value and illiquid securities including commercial loans and RMBS values on the portfolio. Interest rate risk includes the changes in the fair value of fixed maturities based upon changes in interest rates. Credit quality risk includes the risk of default by issuers of debt securities. Risks from investments in limited partnerships and limited liability companies and illiquid securities risks include the potential loss from the diminution in the value of the underlying investment of the limited partnerships and limited liability companies and the potential loss from changes in the fair value of commercial loans and RMBS.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2019
Fair Value Measurements
Fair Value Measurements	6. Fair Value Measurements The Company has established a framework for valuing financial assets and financial liabilities. The framework is based on a hierarchy of inputs used in valuation and gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. The standard describes three levels of inputs that may be used to measure fair value and categorize the assets and liabilities within the hierarchy: Level 1 – Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. These prices generally provide the most reliable evidence and are used to measure fair value whenever available. Active markets are defined as having the following for the measured asset/liability: (i) many transactions, (ii) current prices, (iii) price quotes not varying substantially among market makers, (iv) narrow bid/ask spreads and (v) most information publicly available. As of June 30, 2019 and December 31, 2018, the Company does not hold any Level 1 securities. Level 2 – Fair value is based on significant inputs, other than Level 1 inputs, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets, nonbinding quotes in markets that are not active for identical or similar assets and other market observable inputs (e.g., interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.). The Company’s Level 2 assets include U.S. Treasury securities, government agency securities, municipal debt obligations, RMBS, CMBS, CLO, ABS and corporate debt securities. The Company generally obtains valuations from third-party pricing services and/or security dealers for identical or comparable assets or liabilities by obtaining nonbinding broker quotes (when pricing service information is not available) in order to determine an estimate of fair value. The Company bases all of its estimates of fair value for assets on the bid price as it represents what a third-party market participant would be willing to pay in an arm’s-length transaction. Level 3 – Fair value is based on at least one or more significant unobservable inputs that are supported by little or no market activity for the asset. These inputs reflect the Company’s understanding about the assumptions market participants would use in pricing the asset or liability. The Company’s Level 3 assets include its investments in corporate debt securities and commercial levered loans as they are illiquid and trade in inactive markets. These markets are considered inactive as a result of the low level of trades of such investments. Commercial levered loans are also not considered within the Level 3 tabular disclosure, because they are in the “held for investment” category and are also not measured at fair value on a recurring basis. The corporate debt securities classified under Level 3 in the fair value hierarchy are provided to the Company by an independent valuation service provider which use both observable and unobservable inputs in the calculation of fair value. Unobservable inputs, significant to the measurement and valuation of the corporate debt securities are assumptions about prepayment speed, default rates and reinvestment parameters. Significant changes to any of these inputs, or combination of inputs, could significantly change the fair value measurement for these securities when using the income approach. The primary pricing sources for the Company’s investments in commercial levered loans are reviewed for reasonableness, based on the Company’s understanding of the respective market. Prices may then be determined using valuation methodologies such as discounted cash flow models, as well as matrix pricing analyses performed on nonbinding quotes from brokers or other market makers. The following are the major categories of assets measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018, using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3): June 30, 2019 Quoted Prices in Significant Active Markets Other Significant for Observable Unobservable Identical Assets Inputs Inputs ($ in thousands) (Level 1) (Level 2) (Level 3) Total Fixed income securities: U.S. Treasury securities $ — $ 85,087 $ — $ 85,087 Government agency securities — 473 — 473 Corporate debt securities — 1,188,347 128,018 1,316,365 Municipal debt obligations — 8,491 — 8,491 ABS — 87,554 — 87,554 CLO — 172,141 — 172,141 CMBS — 66,561 — 66,561 RMBS - non agency — 77,148 — 77,148 RMBS - agency — 70,169 — 70,169 Total fixed income securities $ — $ 1,755,971 $ 128,018 1,883,989 Investments measured at net asset value: Limited partnerships and limited liability companies 62,351 Total assets at fair value $ 1,946,340 December 31, 2018 Quoted Prices in Significant Active Markets Other Significant for Observable Unobservable Identical Assets Inputs Inputs ($ in thousands) (Level 1) (Level 2) (Level 3) Total Fixed income securities: U.S. Treasury securities $ — $ 90,328 $ — $ 90,328 Corporate debt securities — 1,065,933 126,497 1,192,430 Municipal debt obligations — 6,085 — 6,085 ABS — 83,581 — 83,581 CLO — 156,913 — 156,913 CMBS — 53,843 — 53,843 RMBS - non agency — 79,551 — 79,551 RMBS - agency — 30,651 — 30,651 Total fixed income securities $ — $ 1,566,885 $ 126,497 1,693,382 Investments measured at net asset value: Limited partnerships and limited liability companies 53,432 Total assets at fair value $ 1,746,814 There were no transfers between Levels 1 and 2 for the six months ended June 30, 2019 and the year ended December 31, 2018. In 2018, securities in the amount of $126.5 million were transferred from Level 2 into Level 3 as it was determined that these securities trade in inactive markets. Management believes that the use of the fair value option as specified in Accounting Standards Codification No. 825 , Financial Instruments (ASC 825) to record limited partnerships and limited liability companies is consistent with its objective for such investments. As such, the entire limited partnership portfolio of $62.4 million and $53.4 million as of June 30, 2019 and December 31, 2018, respectively and was recorded using net asset value, which the Company has determined to be the best indicator of fair value for these investments. The following tables disclose the carrying value and fair value of financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets as of June 30, 2019 and December 31, 2018: June 30, 2019 Carrying Fair Value ($ in thousands) Value Total Level 1 Level 2 Level 3 Assets Commercial levered loans $ 16,549 $ 16,168 $ — $ — $ 16,168 Liabilities Notes payable 182,993 185,979 — 185,979 — Unamortized debt issuance costs (476) Total notes payable $ 182,517 December 31, 2018 Carrying Fair Value ($ in thousands) Value Total Level 1 Level 2 Level 3 Assets Commercial levered loans $ 16,915 $ 15,858 $ — $ — $ 15,858 Liabilities Notes payable 183,000 183,999 — 183,999 — Unamortized debt issuance costs (645) Total notes payable $ 182,355 The fair value of the notes payable at June 30, 2019, approximated a price equal to $186.0 million or 101.6% of the par value. The fair value of the notes payable at December 31, 2018, approximated a price equal to $184.0 million or 100.5% of the par value. The following tables provides a summary of the changes in the fair value of securities measured using Level 3 inputs during the six months ended June 30, 2019 and 2018: Level 3 Corporate ($ in thousands) Securities Fair value, December 31, 2018 $ 126,497 Total net gains (losses) for the period included in: Other comprehensive income 921 Net realized loss (71) Purchases 3,516 Sales — Issuances — Settlements (2,845) Transfers into Level 3 — Transfers out of Level 3 — Fair value, June 30, 2019 $ 128,018 Level 3 Corporate ($ in thousands) Securities Fair value, December 31, 2017 $ — Total net losses for the period included in: Other comprehensive loss (558) Net realized loss (6) Purchases 4,127 Sales — Issuances — Settlements (895) Transfers into Level 3 119,004 Transfers out of Level 3 — Fair value, June 30, 2018 $ 121,672

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2019
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)	7. Accumulated Other Comprehensive Income (Loss) The following table summarizes the components of accumulated other comprehensive income (loss) (AOCI) for the three and six months ended June 30, 2019 and 2018: ($ in thousands) Gross Tax Net March 31, 2019 $ 5,257 $ (180) $ 5,437 Unrealized holding gains on fixed income securities 29,830 6,206 23,624 Amounts reclassified into net income 189 (28) 217 Other comprehensive income 29,641 6,234 23,407 June 30, 2019 $ 34,898 $ 6,054 $ 28,844 ($ in thousands) Gross Tax Net March 31, 2018 $ (4,696) $ (2,534) $ (2,162) Unrealized holding losses on fixed income securities (13,268) (2,769) (10,499) Amounts reclassified into net income 776 45 731 Other comprehensive loss (14,044) (2,814) (11,230) June 30, 2018 $ (18,740) $ (5,348) $ (13,392) ($ in thousands) Gross Tax Net December 31, 2018 $ (29,760) $ (7,445) $ (22,315) Unrealized holding gains on fixed income securities 64,633 13,447 51,186 Amounts reclassified into net income (25) (52) 27 Other comprehensive income 64,658 13,499 51,159 June 30, 2019 $ 34,898 $ 6,054 $ 28,844 ($ in thousands) Gross Tax Net December 31, 2017 $ 22,265 $ 2,968 $ 19,297 Unrealized holding losses on fixed income securities (40,031) (8,425) (31,606) Amounts reclassified into net income 974 (109) 1,083 Other comprehensive loss (41,005) (8,316) (32,689) June 30, 2018 $ (18,740) $ (5,348) $ (13,392) The following table presents reclassifications out of AOCI attributable to the Company during the three and six months ended June 30, 2019 and 2018: Line in Consolidated Three Months Ended June 30 Six Months Ended June 30 ($ in thousands) Statements of Operations 2019 2018 2019 2018 AOCI Unrealized gains on securities Realized investment gains (losses) $ 189 $ 776 $ (25) $ 974 Income tax (benefit) expense (28) 45 (52) (109) Total reclassifications Net realized investment gains $ 217 $ 731 $ 27 $ 1,083

Related-Party Information

Related-Party Information	6 Months Ended
	Jun. 30, 2019
Related-Party Information
Related-Party Information	8. Related-Party Information Loans to Executives and Equity Distribution At December 31, 2018, the Company had $4.2 million in loans to executives. On March 15, 2019, the $4.2 million in loans to executives were repaid. On the same date, a special equity distribution of $4.2 million was made by the Company, which was accounted for as a non-cash transaction on the Company’s consolidated balance sheet. Transition and Separation Agreement On May 3, 2019, the Company entered into a Transition and Separation Agreement (the Separation Agreement) with its former Chief Executive Officer (the former CEO). Under the Separation Agreement, the former CEO and the Company agreed to a general release of claims and his compliance with the restrictive covenants. The Company recorded an expense of $7.2 million within Other Expense in the consolidated statements of operations for the three and six months ended June 30, 2019 relating to the severance payments and benefits payable to the former CEO. Per the terms of the Separation Agreement, the former CEO’s profit interests known as P Shares (P Shares) were forfeited and outstanding restricted stock units (RSUs) will be treated in accordance with the terms of the applicable award agreements.

Insurance Operations

Insurance Operations	6 Months Ended
	Jun. 30, 2019
Insurance Operations
Insurance Operations	9. Insurance Operations Total reinsurance ceded and assumed relating to premiums written, earned premiums and net losses and loss adjustment expenses incurred, are as follows: Three Months Ended June 30 Six Months Ended June 30 ($ in thousands) 2019 2018 2019 2018 Written premiums Direct written premiums $ 234,306 $ 221,116 $ 489,291 $ 468,205 Assumed from other companies 726 1,439 1,579 3,770 Ceded to other companies 24,464 9,520 70,400 (2,412) Net written premiums $ 210,568 $ 213,035 $ 420,470 $ 474,387 Earned premiums Direct earned premiums $ 231,088 $ 212,835 $ 454,090 $ 411,736 Assumed from other companies 932 2,294 1,874 7,164 Ceded to other companies 29,540 32,006 57,876 68,321 Net earned premiums $ 202,480 $ 183,123 $ 398,088 $ 350,579 Percent of amount assumed to net Losses and loss adjustment expenses incurred Direct net losses and loss adjustment expenses incurred $ 166,696 $ 135,069 $ 302,044 $ 255,453 Assumed from other companies (26,023) (5,669) (23,204) (6,678) Ceded to other companies 13,558 19,467 33,392 36,988 Net losses and loss adjustment expenses incurred $ 127,115 $ 109,933 $ 245,448 $ 211,787 In 2017, the Company ceded significant amounts of premium under the whole account quota share reinsurance agreements (WAQS). In 2018, the WAQS were terminated. To the extent of unearned premium at the time of termination, ceded written premiums, net of the ceding commission, was returned. For the three and six months ended June 30, 2019 and 2018 under the WAQS, the Company recorded the following: Three Months Ended June 30 ($ in thousands) 2019 2018 Ceded written premium (return of ceded prepaid) $ — $ (18,831) Ceded earned premium — 1,368 (Increase) reduction to net loss and loss adjustment expenses incurred (2,255) 642 Reduction to policy acquisition expenses 2,255 624 Reduction to pre-tax income $ - $ 102 Six Months Ended June 30 ($ in thousands) 2019 2018 Ceded written premium (return of ceded prepaid) $ (3) $ (68,800) Ceded earned premium (3) 14,544 (Increase) reduction to net loss and loss adjustment expenses incurred (2,207) 8,548 Reduction to policy acquisition expenses 2,205 4,906 (Increase) reduction to pre-tax income $ (1) $ 1,090 Distribution Partners The Company negotiates with distribution partners to write direct premium on behalf of the Company’s affiliates. In January 2019, a distribution partner of the Company was acquired by a third-party insurance carrier. In 2018, the Company has sourced 13.5% of direct premium from this distribution partner. The Company does not anticipate any future premiums from this distribution partner after the first quarter of 2019. The three distribution partners contributing the largest amounts of direct written premium (excluding the distribution partner above) totaled $80.4 million and $72.5 million for the three months ended June 30, 2019 and 2018, respectively. The three distribution partners contributing the largest amounts of direct written premium (excluding the distribution partner above) totaled $133.3 million and $131.9 million for the six months ended June 30, 2019 and 2018, respectively. Unpaid Losses Unpaid losses are based on individual case estimates for losses reported and include a provision for incurred but not reported (IBNR) losses and loss adjustment expenses. The following table provides a roll forward of the Company’s reserve for losses and loss adjustment expenses: June 30 ($ in thousands) 2019 2018 Gross unpaid losses and loss expenses, at beginning of year $ 1,396,812 $ 1,258,237 Ceded unpaid losses and loss expenses, at beginning of year 185,295 201,156 Net reserve for losses and loss expenses, at beginning of year 1,211,517 1,057,081 Add: Incurred losses and loss expenses occurring in the: Current year 238,634 214,392 Prior years (3,128) (2,605) Prior years attributable to adjusted premium 9,942 - Total incurred losses and loss expenses 245,448 211,787 Less: Paid losses and loss expenses for claims occurring in the: Current year 18,725 17,179 Prior years 164,601 127,696 Total paid losses and loss expenses for claims 183,326 144,875 Net reserves for losses and loss expenses, at end of period 1,273,639 1,123,993 Ceded unpaid losses and loss expenses, at end of period 210,021 202,928 Gross unpaid losses and loss expenses, at end of period $ 1,483,660 $ 1,326,921 During the six months ended June 30, 2019, the Company’s estimated losses and loss expenses for accident years 2018 and prior developed favorably by $3.1 million driven by $14.5 million favorable development in Workers’ Compensation lines and $6.7 million favorable development in Auto Liability lines. The favorable experience was partially offset by $13.2 million in unfavorable development in General Liability lines and $4.6 million unfavorable development in Marine Liability lines within the All Other Lines category. The Company incurred $9.9 million of losses and loss adjustment expenses on earned premium attributable to prior accident years during the six months ended June 30, 2019. During the six months ended June 30, 2018, the Company’s estimated losses and loss expenses for accident years 2017 and prior developed favorably by $2.6 million driven by $7.2 million of favorable development in Workers’ Compensation, $7.8 million of favorable development in Commercial Auto lines and $2.1 million of favorable development in Marine Liability lines within the All Other Lines category, partially offset by $8.3 million of unfavorable development in General Liability lines and $6.1 million of unfavorable development in Commercial Multiple Peril lines.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Taxes
Income Taxes	10. Income Taxes The Company and its respective U.S. subsidiaries are subject to the tax laws and regulations of the United States and various state jurisdictions. The Company files a consolidated federal tax return that includes all domestic subsidiaries. The Company has one non-U.S. subsidiary, PSBL, which has received an undertaking from the Minister of Finance in Bermuda that would exempt it from Bermudian taxation until March 2035. The Company uses the estimated annual effective tax rate method for calculating its tax provision in interim periods, which represents the Company’s best estimate of the effective tax rate expected for the full year. The estimated annual effective tax rate typically differs from the U.S. statutory tax rate primarily as a result of applying the Bermuda statutory tax rate of 0% to Bermuda income before taxes, tax-exempt investment income and any discrete items recognized during the period. The Company’s effective tax rates were 21.8% and 20.3% for the three and six months ended June 30, 2019 and 2018, respectively. The increase in the effective tax rate in the three and six months ended June 30, 2019 compared to the same period in 2018 was primarily due to prior year adjustments recorded in of 2018 related to state income taxes.

Debt

Debt	6 Months Ended
	Jun. 30, 2019
Debt
Debt	11. Debt On March 15, 2019, the Company entered into an amended and restated revolving loan agreement (as amended, the revolving facility), among other things, (a) extended the maturity date to the earlier of (i) March 15, 2022, or (ii) 91 days before the maturity of the senior notes due November 2020 or, if such senior notes are amended or replaced, 91 days before the maturity of such amendment or replacement and (b) increased the aggregate principal amount of $25.0 million to $50.0 million.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2019
Segment Information
Segment Information	12. Segment Information The following table provides a summary of the Company’s gross written premium by customer segments within our Specialty Insurance reportable segment. Gross written premiums included in “Other” consist of (i) primary and excess workers’ compensation coverage for Self-Insured Groups, (ii) niches exited prior to 2018, many with a concentration in commercial auto, (iii) fronting arrangements in which all premium written is ceded to a third party, (iv) participation in industry pools, and (v) emerging new business customer segments. Three Months Ended June 30 Six Months Ended June 30 ($ in thousands) 2019 2018 2019 2018 Customer Segment Construction $ 32,495 $ 26,575 $ 55,743 $ 49,528 Consumer Services 37,893 28,387 65,378 50,294 Marine and Energy 20,845 18,884 36,779 34,146 Media and Entertainment 39,300 37,977 76,842 78,231 Professional Services 29,104 27,939 58,666 57,504 Real Estate 46,614 44,072 75,349 72,030 Transportation 23,499 23,448 57,514 50,362 Customer Segment subtotal 229,750 207,282 426,271 392,095 Other 5,282 15,273 64,599 79,880 Specialty Insurance total $ 235,032 $ 222,555 $ 490,870 $ 471,975 The following table provides a summary of the Company’s gross written premium by line of business within our Specialty Insurance segment: Three Months Ended June 30 Six Months Ended June 30 ($ in thousands) 2019 2018 2019 2018 Line of Business Commercial Auto $ 54,296 $ 34,451 $ 96,080 $ 72,702 General Liability 83,156 81,585 154,451 145,630 Workers’ Compensation 34,921 45,278 124,983 144,048 Commercial Multiple Peril 17,040 18,812 36,674 34,072 All Other Lines 45,619 42,429 78,682 75,523 Specialty Insurance total $ 235,032 $ 222,555 $ 490,870 $ 471,975

Earnings per Share

Earnings per Share	6 Months Ended
	Jun. 30, 2019
Earnings per Share
Earnings per Share	13. Earnings per Share The following table provides a reconciliation of the numerators and denominators of basic and diluted earnings per share (EPS) based on restated shares: Continuing Operations Discontinued Operations ($ in thousands, except per share amounts) Income Shares Per Share Loss Shares Per Share Three Months Ended June 30, 2019 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income (loss) available to common stockholders $ 8,696 38,851 $ 0.22 $ (78) 38,851 $ — Effect of dilutive securities: Stock compensation plans 604 — 604 — Diluted EPS $ 8,696 39,455 $ 0.22 $ (78) 39,455 $ — Continuing Operations Discontinued Operations ($ in thousands, except per share amounts) Income Shares Per Share Loss Shares Per Share Three Months Ended June 30, 2018 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income (loss) available to common stockholders $ 14,652 38,743 $ 0.38 $ (198) 38,743 $ (0.01) Effect of dilutive securities: Stock compensation plans 698 0.01 698 — Diluted EPS $ 14,652 39,441 $ 0.37 $ (198) 39,441 $ (0.01) Continuing Operations Discontinued Operations ($ in thousands, except per share amounts) Income Shares Per Share Loss Shares Per Share Six Months Ended June 30, 2019 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income (loss) available to common stockholders $ 22,391 38,851 $ 0.58 $ (333) 38,851 $ (0.01) Effect of dilutive securities: Stock compensation plans 604 0.01 604 — Diluted EPS $ 22,391 39,455 $ 0.57 $ (333) 39,455 $ (0.01) Continuing Operations Discontinued Operations ($ in thousands, except per share amounts) Income Shares Per Share Income Shares Per Share Six Months Ended June 30, 2018 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income available to common stockholders $ 24,662 38,743 $ 0.64 $ 587 38,743 $ 0.02 Effect of dilutive securities: Stock compensation plans 698 0.01 698 0.01 Diluted EPS $ 24,662 39,441 $ 0.63 $ 587 39,441 $ 0.01

Legal Proceedings

Legal Proceedings	6 Months Ended
	Jun. 30, 2019
Legal Proceedings
Legal Proceedings	14. Legal Proceedings In the normal course of business, the Company’s insurance subsidiaries are subject to disputes, including litigation and arbitration, arising out of the ordinary course of business. The Company’s estimates of the costs of settling such matters are reflected in its reserves for losses and loss expenses, and the Company does not believe that the ultimate outcome of such matters will have a material adverse effect on its financial condition or results of operations.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2019
Subsequent Events
Subsequent Events	15. Subsequent Events Initial Public Offering On July 29, 2019, the Company completed the IPO with the sale of 7,857,145 shares of the Company’s common stock, including the issuance and sale by the Company of 4,285,715 shares of the Company’s common stock and the sale by ProSight Parallel Investment LLC and ProSight Investment LLC (collectively, the GS Investors) and ProSight TPG, L.P., TPG PS 1, L.P., TPG PS 2, L.P., TPG PS 3, L.P. and TPG PS 4, L.P. (collectively the TPG Investors and together with the GS Investors, the Principal Stockholders) of 3,571,430 shares of the Company’s common stock. Shares of the Company’s common stock were initially offered to the public by the underwriters in the IPO at a per-share price of $14.00. After deducting underwriting discounts and commissions and estimated offering expenses, the net proceeds to the Company from the IPO were approximately $51.6 million. The Company did not receive any of the proceeds from the sale of the shares of the Company’s common stock sold by the Principal Stockholders in the IPO. Following the IPO, the GS Investors continue to hold approximately 40.9% of the Company’s outstanding common stock and the TPG Investors continue to hold approximately 39.4% of the Company’s outstanding common stock. 2019 Equity Incentive Plan In connection with, and prior to the completion of the IPO, PGHL’s Amended and Restated 2010 Equity Incentive Plan (the 2010 Plan) was terminated. Immediately prior to the merger, all outstanding P Shares granted under the 2010 Plan prior to the IPO, were cancelled, and all outstanding RSUs granted under the 2010 Plan converted into RSUs based on the shares of common stock of the Company . On July 24, 2019, the Company’s 2019 Equity Incentive Plan (the 2019 Plan) became effective immediately prior to the effectiveness of the registration statement filed in connection with the IPO. The 2019 Plan provides for the grant of stock options, stock appreciation rights, restricted stock, RSUs, performance shares, and units and other cash‑based or share‑based awards. The 2019 Plan is administered by the compensation committee of the Company’s board of directors. Subject to the provisions of the 2019 Plan, the compensation committee determines in its discretion the persons to whom and the times at which awards are granted, the size of awards (subject to certain limitations set forth in the compensation committee charter) and the terms and conditions of awards. A total of 4,500,000 shares of common stock are initially authorized and reserved for issuance under the 2019 Plan, including shares underlying RSUs granted under the 2010 Plan, which converted into the Company’s common stock, effective July 25, 2019, as a result of the merger. The following is a summary of the post-offering compensation included in the 2019 Plan, including the number of common stock reserved to each award mentioned below: (i) 183,095 annual long-term incentive awards in respect of 2019, 50% of which are time-vesting RSUs and 50% of which are performance-vesting RSUs, granted to management in connection with the IPO. The fair value of such awards is $2.6 million at grant date. (ii) 1,302,198 supplemental RSU awards, 100% of which are time-vesting RSUs, granted to management in connection with the IPO and subject to vesting as follows: 25% vested at grant date, 25% will vest on the second anniversary of the grant date, subject to continued service, and 50% will vest on the third anniversary of the grant date, subject to continued service. The fair value of the supplemental RSUs is $18.2 million. (iii) 250,000 founders grant awards in the form of time-vesting RSUs with a fair value of $3.5 million at grant date. These awards will cliff vest on the third anniversary of the grant date. (iv) 26,399 non-employee director RSU awards with a fair value of $0.4 million at grant date (other than RSUs granted to non-employee directors designated by the Company’s principal stockholders, if any, which will be determined by the Board of Directors. These awards are fully vested on grant date. (v) 668,135 RSUs initially granted under the 2010 Plan that were converted into RSUs based on shares of the Company’s common stock upon the consummation of the merger. 2019 Employee Stock Purchase Plan On July 24, 2019, the Company’s 2019 Employee Stock Purchase Plan (the 2019 ESPP) became effective immediately prior to the effectiveness of the registration statement filed in connection with the IPO. A total of 1,000,000 shares of the Company’s common stock will be reserved and available for sale under the 2019 ESPP. The compensation committee of the board of directors administers the 2019 ESPP and have full authority to interpret the terms of the 2019 ESPP.

Supplemental Cash Flow (Tables)

Supplemental Cash Flow (Tables)	6 Months Ended
	Jun. 30, 2019
Supplemental Cash Flow
Summary of supplemental cash flow information	Six Months Ended June 30 ($ in thousands) 2019 2018 Cash paid during the period for: Interest $ 6,566 $ 6,105

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2019
Discontinued Operations
Summary of results of operations and carrying amounts of assets and liabilities for discontinued operations	June 30, December 31, ($ in thousands) 2019 2018 Assets Total cash and investments $ 10,250 $ 10,436 Other assets 9,028 9,283 Total assets $ 19,278 $ 19,719 Liabilities Unpaid losses and loss adjustment expenses $ 13,917 $ 14,030 Other liabilities 7,851 8,226 Total liabilities $ 21,768 $ 22,256

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2019
Investments
Summary of gross unrealized gains and losses on AFS securities included in assets	The gross unrealized gains and losses on AFS securities included in assets from continuing operations at June 30, 2019, are as follows: Cost/ Gross Gross Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value Fixed income securities: U.S. Treasury securities $ 84,377 $ 901 $ (191) $ 85,087 Government agency securities 473 — — 473 Corporate debt securities 1,300,218 21,985 (5,838) 1,316,365 Municipal debt obligations 8,274 217 — 8,491 ABS 86,573 1,212 (231) 87,554 CLO 173,538 212 (1,609) 172,141 CMBS 65,174 1,489 (102) 66,561 RMBS - non-agency 66,350 10,916 (118) 77,148 RMBS - agency 70,183 464 (478) 70,169 Total fixed income securities $ 1,855,160 $ 37,396 $ (8,567) $ 1,883,989 The gross unrealized gains and losses on AFS securities included in assets from continuing operations at December 31, 2018, are as follows: Cost/ Gross Gross Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value Fixed income securities: U.S. Treasury securities $ 92,219 $ 126 $ (2,017) $ 90,328 Corporate debt securities 1,231,352 1,216 (40,138) 1,192,430 Municipal debt obligations 6,238 — (153) 6,085 ABS 82,603 1,095 (117) 83,581 CLO 161,421 160 (4,668) 156,913 CMBS 55,980 — (2,137) 53,843 RMBS - non-agency 68,594 11,078 (121) 79,551 RMBS - agency 31,348 — (697) 30,651 Total fixed income securities $ 1,729,755 $ 13,675 $ (50,048) $ 1,693,382
Summary of all securities in an unrealized loss position, the fair value and gross unrealized loss by asset class and by length of time those securities have been in a loss position	The following table summarizes all securities in an unrealized loss position at June 30, 2019, the fair value and gross unrealized loss by asset class and by length of time those securities have been in a loss position: Less Than 12 Months Greater Than 12 Months Total Total Fair Unrealized Fair Unrealized Total Unrealized ($ in thousands) Value Losses Value Losses Fair Value Losses U.S. Treasury securities $ 2,499 $ (5) $ 41,771 $ (186) $ 44,270 $ (191) Corporate debt securities 119,250 (1,646) 179,264 (4,192) 298,514 (5,838) ABS 30,311 (208) 2,795 (23) 33,106 (231) CLO 81,999 (552) 56,217 (1,057) 138,216 (1,609) CMBS 1,000 — 9,611 (102) 10,611 (102) RMBS - non-agency 1,104 (11) 2,703 (107) 3,807 (118) RMBS - agency 12,456 (308) 5,490 (170) 17,946 (478) Total $ 248,619 $ (2,730) $ 297,851 $ (5,837) $ 546,470 $ (8,567) The following table summarizes all securities in an unrealized loss position at December 31, 2018, the fair value and gross unrealized loss by asset class and by length of time those securities have been in a loss position: Less Than 12 Months Greater Than 12 Months Total Total Fair Unrealized Fair Unrealized Total Unrealized ($ in thousands) Value Losses Value Losses Fair Value Losses U.S. Treasury securities $ 8,263 $ (82) $ 69,727 $ (1,935) $ 77,990 $ (2,017) Corporate debt securities 393,931 (10,241) 710,482 (29,897) 1,104,413 (40,138) Municipal debt obligations — — 6,085 (153) 6,085 (153) ABS 25,258 (61) 4,249 (56) 29,507 (117) CLO 146,004 (4,668) — — 146,004 (4,668) CMBS — — 53,843 (2,137) 53,843 (2,137) RMBS - non-agency 529 (13) 2,449 (108) 2,978 (121) RMBS - agency 27,150 (513) 3,502 (184) 30,652 (697) Total $ 601,135 $ (15,578) $ 850,337 $ (34,470) $ 1,451,472 $ (50,048)
Summary of amortized cost and fair value of fixed income securities	June 30, 2019 Amortized Fair ($ in thousands) Cost Value Due in one year or less $ 85,287 $ 85,352 Due after one through five years 724,384 731,504 Due after five through ten years 499,428 510,299 Due after ten years 84,243 83,261 1,393,342 1,410,416 Structured securities: ABS 86,573 87,554 CLO 173,538 172,141 CMBS 65,174 66,561 RMBS - non-agency 66,350 77,148 RMBS - agency 70,183 70,169 Total $ 1,855,160 $ 1,883,989
Summary of net investment income included in net income from continuing operations	($ in thousands) Three Months Ended June 30 Six Months Ended June 30 2019 2018 2019 2018 Fixed income securities $ 16,531 $ 14,016 $ 32,650 $ 26,408 Commercial levered loans 159 301 378 665 Net limited partnerships gains 1,143 1,563 2,394 2,825 Other 92 6 181 23 Gross investment income 17,925 15,886 35,603 29,921 Less: expenses 527 338 1,047 664 Net investment income $ 17,398 $ 15,548 $ 34,556 $ 29,257

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Measurements
Summary of major categories of assets measured at fair value on a recurring basis	June 30, 2019 Quoted Prices in Significant Active Markets Other Significant for Observable Unobservable Identical Assets Inputs Inputs ($ in thousands) (Level 1) (Level 2) (Level 3) Total Fixed income securities: U.S. Treasury securities $ — $ 85,087 $ — $ 85,087 Government agency securities — 473 — 473 Corporate debt securities — 1,188,347 128,018 1,316,365 Municipal debt obligations — 8,491 — 8,491 ABS — 87,554 — 87,554 CLO — 172,141 — 172,141 CMBS — 66,561 — 66,561 RMBS - non agency — 77,148 — 77,148 RMBS - agency — 70,169 — 70,169 Total fixed income securities $ — $ 1,755,971 $ 128,018 1,883,989 Investments measured at net asset value: Limited partnerships and limited liability companies 62,351 Total assets at fair value $ 1,946,340 December 31, 2018 Quoted Prices in Significant Active Markets Other Significant for Observable Unobservable Identical Assets Inputs Inputs ($ in thousands) (Level 1) (Level 2) (Level 3) Total Fixed income securities: U.S. Treasury securities $ — $ 90,328 $ — $ 90,328 Corporate debt securities — 1,065,933 126,497 1,192,430 Municipal debt obligations — 6,085 — 6,085 ABS — 83,581 — 83,581 CLO — 156,913 — 156,913 CMBS — 53,843 — 53,843 RMBS - non agency — 79,551 — 79,551 RMBS - agency — 30,651 — 30,651 Total fixed income securities $ — $ 1,566,885 $ 126,497 1,693,382 Investments measured at net asset value: Limited partnerships and limited liability companies 53,432 Total assets at fair value $ 1,746,814
Summary of carrying value and fair value of financial instruments that are not recognized or are not carried at fair value	June 30, 2019 Carrying Fair Value ($ in thousands) Value Total Level 1 Level 2 Level 3 Assets Commercial levered loans $ 16,549 $ 16,168 $ — $ — $ 16,168 Liabilities Notes payable 182,993 185,979 — 185,979 — Unamortized debt issuance costs (476) Total notes payable $ 182,517 December 31, 2018 Carrying Fair Value ($ in thousands) Value Total Level 1 Level 2 Level 3 Assets Commercial levered loans $ 16,915 $ 15,858 $ — $ — $ 15,858 Liabilities Notes payable 183,000 183,999 — 183,999 — Unamortized debt issuance costs (645) Total notes payable $ 182,355
Summary of the changes in the fair value of securities measured using Level 3 inputs	Level 3 Corporate ($ in thousands) Securities Fair value, December 31, 2018 $ 126,497 Total net gains (losses) for the period included in: Other comprehensive income 921 Net realized loss (71) Purchases 3,516 Sales — Issuances — Settlements (2,845) Transfers into Level 3 — Transfers out of Level 3 — Fair value, June 30, 2019 $ 128,018 Level 3 Corporate ($ in thousands) Securities Fair value, December 31, 2017 $ — Total net losses for the period included in: Other comprehensive loss (558) Net realized loss (6) Purchases 4,127 Sales — Issuances — Settlements (895) Transfers into Level 3 119,004 Transfers out of Level 3 — Fair value, June 30, 2018 $ 121,672

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2019
Accumulated Other Comprehensive Income (Loss)
Summary of the components of accumulated other comprehensive income (loss)	($ in thousands) Gross Tax Net March 31, 2019 $ 5,257 $ (180) $ 5,437 Unrealized holding gains on fixed income securities 29,830 6,206 23,624 Amounts reclassified into net income 189 (28) 217 Other comprehensive income 29,641 6,234 23,407 June 30, 2019 $ 34,898 $ 6,054 $ 28,844 ($ in thousands) Gross Tax Net March 31, 2018 $ (4,696) $ (2,534) $ (2,162) Unrealized holding losses on fixed income securities (13,268) (2,769) (10,499) Amounts reclassified into net income 776 45 731 Other comprehensive loss (14,044) (2,814) (11,230) June 30, 2018 $ (18,740) $ (5,348) $ (13,392) ($ in thousands) Gross Tax Net December 31, 2018 $ (29,760) $ (7,445) $ (22,315) Unrealized holding gains on fixed income securities 64,633 13,447 51,186 Amounts reclassified into net income (25) (52) 27 Other comprehensive income 64,658 13,499 51,159 June 30, 2019 $ 34,898 $ 6,054 $ 28,844 ($ in thousands) Gross Tax Net December 31, 2017 $ 22,265 $ 2,968 $ 19,297 Unrealized holding losses on fixed income securities (40,031) (8,425) (31,606) Amounts reclassified into net income 974 (109) 1,083 Other comprehensive loss (41,005) (8,316) (32,689) June 30, 2018 $ (18,740) $ (5,348) $ (13,392)
Summary of reclassifications out of accumulated other comprehensive income (loss)	Line in Consolidated Three Months Ended June 30 Six Months Ended June 30 ($ in thousands) Statements of Operations 2019 2018 2019 2018 AOCI Unrealized gains on securities Realized investment gains (losses) $ 189 $ 776 $ (25) $ 974 Income tax (benefit) expense (28) 45 (52) (109) Total reclassifications Net realized investment gains $ 217 $ 731 $ 27 $ 1,083

Insurance Operations (Tables)

Insurance Operations (Tables)	6 Months Ended
	Jun. 30, 2019
Insurance Operations
Summary of reinsurance ceded and assumed relating to premiums written, earned premiums and net losses and loss adjustment expenses	Three Months Ended June 30 Six Months Ended June 30 ($ in thousands) 2019 2018 2019 2018 Written premiums Direct written premiums $ 234,306 $ 221,116 $ 489,291 $ 468,205 Assumed from other companies 726 1,439 1,579 3,770 Ceded to other companies 24,464 9,520 70,400 (2,412) Net written premiums $ 210,568 $ 213,035 $ 420,470 $ 474,387 Earned premiums Direct earned premiums $ 231,088 $ 212,835 $ 454,090 $ 411,736 Assumed from other companies 932 2,294 1,874 7,164 Ceded to other companies 29,540 32,006 57,876 68,321 Net earned premiums $ 202,480 $ 183,123 $ 398,088 $ 350,579 Percent of amount assumed to net Losses and loss adjustment expenses incurred Direct net losses and loss adjustment expenses incurred $ 166,696 $ 135,069 $ 302,044 $ 255,453 Assumed from other companies (26,023) (5,669) (23,204) (6,678) Ceded to other companies 13,558 19,467 33,392 36,988 Net losses and loss adjustment expenses incurred $ 127,115 $ 109,933 $ 245,448 $ 211,787
Summary of effects of the termination of Quota Share Arrangements on pre-tax income	Three Months Ended June 30 ($ in thousands) 2019 2018 Ceded written premium (return of ceded prepaid) $ — $ (18,831) Ceded earned premium — 1,368 (Increase) reduction to net loss and loss adjustment expenses incurred (2,255) 642 Reduction to policy acquisition expenses 2,255 624 Reduction to pre-tax income $ - $ 102 Six Months Ended June 30 ($ in thousands) 2019 2018 Ceded written premium (return of ceded prepaid) $ (3) $ (68,800) Ceded earned premium (3) 14,544 (Increase) reduction to net loss and loss adjustment expenses incurred (2,207) 8,548 Reduction to policy acquisition expenses 2,205 4,906 (Increase) reduction to pre-tax income $ (1) $ 1,090
Summary of unpaid losses	June 30 ($ in thousands) 2019 2018 Gross unpaid losses and loss expenses, at beginning of year $ 1,396,812 $ 1,258,237 Ceded unpaid losses and loss expenses, at beginning of year 185,295 201,156 Net reserve for losses and loss expenses, at beginning of year 1,211,517 1,057,081 Add: Incurred losses and loss expenses occurring in the: Current year 238,634 214,392 Prior years (3,128) (2,605) Prior years attributable to adjusted premium 9,942 - Total incurred losses and loss expenses 245,448 211,787 Less: Paid losses and loss expenses for claims occurring in the: Current year 18,725 17,179 Prior years 164,601 127,696 Total paid losses and loss expenses for claims 183,326 144,875 Net reserves for losses and loss expenses, at end of period 1,273,639 1,123,993 Ceded unpaid losses and loss expenses, at end of period 210,021 202,928 Gross unpaid losses and loss expenses, at end of period $ 1,483,660 $ 1,326,921

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Information
Summary of gross written premiums by customer segments	Three Months Ended June 30 Six Months Ended June 30 ($ in thousands) 2019 2018 2019 2018 Customer Segment Construction $ 32,495 $ 26,575 $ 55,743 $ 49,528 Consumer Services 37,893 28,387 65,378 50,294 Marine and Energy 20,845 18,884 36,779 34,146 Media and Entertainment 39,300 37,977 76,842 78,231 Professional Services 29,104 27,939 58,666 57,504 Real Estate 46,614 44,072 75,349 72,030 Transportation 23,499 23,448 57,514 50,362 Customer Segment subtotal 229,750 207,282 426,271 392,095 Other 5,282 15,273 64,599 79,880 Specialty Insurance total $ 235,032 $ 222,555 $ 490,870 $ 471,975
Summary of gross written premiums by line of business across customer segments	Three Months Ended June 30 Six Months Ended June 30 ($ in thousands) 2019 2018 2019 2018 Line of Business Commercial Auto $ 54,296 $ 34,451 $ 96,080 $ 72,702 General Liability 83,156 81,585 154,451 145,630 Workers’ Compensation 34,921 45,278 124,983 144,048 Commercial Multiple Peril 17,040 18,812 36,674 34,072 All Other Lines 45,619 42,429 78,682 75,523 Specialty Insurance total $ 235,032 $ 222,555 $ 490,870 $ 471,975

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings per Share
Summary of reconciliation of the numerators and denominators of basic and diluted EPS	Continuing Operations Discontinued Operations ($ in thousands, except per share amounts) Income Shares Per Share Loss Shares Per Share Three Months Ended June 30, 2019 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income (loss) available to common stockholders $ 8,696 38,851 $ 0.22 $ (78) 38,851 $ — Effect of dilutive securities: Stock compensation plans 604 — 604 — Diluted EPS $ 8,696 39,455 $ 0.22 $ (78) 39,455 $ — Continuing Operations Discontinued Operations ($ in thousands, except per share amounts) Income Shares Per Share Loss Shares Per Share Three Months Ended June 30, 2018 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income (loss) available to common stockholders $ 14,652 38,743 $ 0.38 $ (198) 38,743 $ (0.01) Effect of dilutive securities: Stock compensation plans 698 0.01 698 — Diluted EPS $ 14,652 39,441 $ 0.37 $ (198) 39,441 $ (0.01) Continuing Operations Discontinued Operations ($ in thousands, except per share amounts) Income Shares Per Share Loss Shares Per Share Six Months Ended June 30, 2019 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income (loss) available to common stockholders $ 22,391 38,851 $ 0.58 $ (333) 38,851 $ (0.01) Effect of dilutive securities: Stock compensation plans 604 0.01 604 — Diluted EPS $ 22,391 39,455 $ 0.57 $ (333) 39,455 $ (0.01) Continuing Operations Discontinued Operations ($ in thousands, except per share amounts) Income Shares Per Share Income Shares Per Share Six Months Ended June 30, 2018 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income available to common stockholders $ 24,662 38,743 $ 0.64 $ 587 38,743 $ 0.02 Effect of dilutive securities: Stock compensation plans 698 0.01 698 0.01 Diluted EPS $ 24,662 39,441 $ 0.63 $ 587 39,441 $ 0.01

Basis of Reporting (Details)

Basis of Reporting (Details) - shares	Jul. 25, 2019	Jul. 24, 2019	Jun. 30, 2019	Dec. 31, 2018
Common stock, shares authorized			200,000,000	200,000,000
Preferred stock, shares authorized			50,000,000	50,000,000
Subsequent Event
Shares of the Company issued as merger consideration	38,851,369
Percentage of equity interests of the Company issued as merger consideration	100.00%
Conversion ratio of PGHL shares to Company shares	6.46
Common stock, shares authorized		200,000,000
Preferred stock, shares authorized		50,000,000

Statements of Cash Flow (Detail

Statements of Cash Flow (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Supplemental cash flow information
Interest	$ 6,566	$ 6,105

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Assets
Total assets	$ 19,278		$ 19,278		$ 19,719
Liabilities
Total liabilities	21,768		21,768		22,256
Insurance Operations, U.K. | Discontinued operation
Net income (loss)
Net income (loss) from discontinued operations	100	$ 200	300	$ 600
Assets
Total cash and investments	10,250		10,250		10,436
Other assets	9,028		9,028		9,283
Total assets	19,278		19,278		19,719
Liabilities
Unpaid losses and loss adjustment expenses	13,917		13,917		14,030
Other liabilities	7,851		7,851		8,226
Total liabilities	$ 21,768		$ 21,768		$ 22,256

Investments - Gross Unrealized

Investments - Gross Unrealized Gains and Losses on AFS Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	$ 1,855,160	$ 1,729,755
Gross Unrealized Gains	37,396	13,675
Gross Unrealized Losses	(8,567)	(50,048)
Fair Value	1,883,989	1,693,382
U.S. Treasury securities
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	84,377	92,219
Gross Unrealized Gains	901	126
Gross Unrealized Losses	(191)	(2,017)
Fair Value	85,087	90,328
Government agency securities
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	473
Fair Value	473
Corporate debt securities
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	1,300,218	1,231,352
Gross Unrealized Gains	21,985	1,216
Gross Unrealized Losses	(5,838)	(40,138)
Fair Value	1,316,365	1,192,430
Municipal debt obligations
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	8,274	6,238
Gross Unrealized Gains	217
Gross Unrealized Losses		(153)
Fair Value	8,491	6,085
ABS
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	86,573	82,603
Gross Unrealized Gains	1,212	1,095
Gross Unrealized Losses	(231)	(117)
Fair Value	87,554	83,581
CLO
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	173,538	161,421
Gross Unrealized Gains	212	160
Gross Unrealized Losses	(1,609)	(4,668)
Fair Value	172,141	156,913
CMBS
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	65,174	55,980
Gross Unrealized Gains	1,489
Gross Unrealized Losses	(102)	(2,137)
Fair Value	66,561	53,843
RMBS - non-agency
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	66,350	68,594
Gross Unrealized Gains	10,916	11,078
Gross Unrealized Losses	(118)	(121)
Fair Value	77,148	79,551
RMBS - agency
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	70,183	31,348
Gross Unrealized Gains	464
Gross Unrealized Losses	(478)	(697)
Fair Value	$ 70,169	$ 30,651

Investments - Unrealized Loss P

Investments - Unrealized Loss Position (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019USD ($)security	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)security	Jun. 30, 2018USD ($)	Dec. 31, 2018USD ($)security
Fair Value
Less Than 12 Months	$ 248,619		$ 248,619		$ 601,135
Greater Than 12 Months	297,851		297,851		850,337
Total Fair Value	546,470		546,470		1,451,472
Unrealized Losses
Less Than 12 Months	(2,730)		(2,730)		(15,578)
Greater Than 12 Months	(5,837)		(5,837)		(34,470)
Total Unrealized Losses	$ (8,567)		$ (8,567)		$ (50,048)
Fixed income securities, unrealized loss position | security	412		412		708
Other-than-temporary impairment (OTTI) charges	$ 0	$ 0	$ 0	$ 0
U.S. Treasury securities
Fair Value
Less Than 12 Months	2,499		2,499		$ 8,263
Greater Than 12 Months	41,771		41,771		69,727
Total Fair Value	44,270		44,270		77,990
Unrealized Losses
Less Than 12 Months	(5)		(5)		(82)
Greater Than 12 Months	(186)		(186)		(1,935)
Total Unrealized Losses	(191)		(191)		(2,017)
Corporate debt securities
Fair Value
Less Than 12 Months	119,250		119,250		393,931
Greater Than 12 Months	179,264		179,264		710,482
Total Fair Value	298,514		298,514		1,104,413
Unrealized Losses
Less Than 12 Months	(1,646)		(1,646)		(10,241)
Greater Than 12 Months	(4,192)		(4,192)		(29,897)
Total Unrealized Losses	(5,838)		(5,838)		(40,138)
Municipal debt obligations
Fair Value
Greater Than 12 Months					6,085
Total Fair Value					6,085
Unrealized Losses
Greater Than 12 Months					(153)
Total Unrealized Losses					(153)
ABS
Fair Value
Less Than 12 Months	30,311		30,311		25,258
Greater Than 12 Months	2,795		2,795		4,249
Total Fair Value	33,106		33,106		29,507
Unrealized Losses
Less Than 12 Months	(208)		(208)		(61)
Greater Than 12 Months	(23)		(23)		(56)
Total Unrealized Losses	(231)		(231)		(117)
CLO
Fair Value
Less Than 12 Months	81,999		81,999		146,004
Greater Than 12 Months	56,217		56,217
Total Fair Value	138,216		138,216		146,004
Unrealized Losses
Less Than 12 Months	(552)		(552)		(4,668)
Greater Than 12 Months	(1,057)		(1,057)
Total Unrealized Losses	(1,609)		(1,609)		(4,668)
CMBS
Fair Value
Less Than 12 Months	1,000		1,000
Greater Than 12 Months	9,611		9,611		53,843
Total Fair Value	10,611		10,611		53,843
Unrealized Losses
Greater Than 12 Months	(102)		(102)		(2,137)
Total Unrealized Losses	(102)		(102)		(2,137)
RMBS - non-agency
Fair Value
Less Than 12 Months	1,104		1,104		529
Greater Than 12 Months	2,703		2,703		2,449
Total Fair Value	3,807		3,807		2,978
Unrealized Losses
Less Than 12 Months	(11)		(11)		(13)
Greater Than 12 Months	(107)		(107)		(108)
Total Unrealized Losses	(118)		(118)		(121)
RMBS - agency
Fair Value
Less Than 12 Months	12,456		12,456		27,150
Greater Than 12 Months	5,490		5,490		3,502
Total Fair Value	17,946		17,946		30,652
Unrealized Losses
Less Than 12 Months	(308)		(308)		(513)
Greater Than 12 Months	(170)		(170)		(184)
Total Unrealized Losses	$ (478)		$ (478)		$ (697)

Investments - Amortized Cost an

Investments - Amortized Cost and Fair Value of Fixed Income Securities (Details) $ in Thousands	Jun. 30, 2019USD ($)
Amortized Cost
Due in one year or less	$ 85,287
Due after one through five years	724,384
Due after five through ten years	499,428
Due after ten years	84,243
Amortized Cost	1,393,342
Fair Value
Due in one year or less	85,352
Due after one through five years	731,504
Due after five through ten years	510,299
Due after ten years	83,261
Fair Value	1,410,416
Amortized Cost - Structured securities	1,855,160
Fair Value - Structured securities	1,883,989
ABS
Fair Value
Amortized Cost - Structured securities	86,573
Fair Value - Structured securities	87,554
CLO
Fair Value
Amortized Cost - Structured securities	173,538
Fair Value - Structured securities	172,141
CMBS
Fair Value
Amortized Cost - Structured securities	65,174
Fair Value - Structured securities	66,561
RMBS - non-agency
Fair Value
Amortized Cost - Structured securities	66,350
Fair Value - Structured securities	77,148
RMBS - agency
Fair Value
Amortized Cost - Structured securities	70,183
Fair Value - Structured securities	$ 70,169

Investments - Limited Partnersh

Investments - Limited Partnerships and Limited Liability Company Investments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Investments
Investments in limited partnership and limited liability companies	$ 62,351	$ 53,432
Threshold notice period to withdraw funds	90 days
Minimum holding period	1 year
PIMCO Tactical Opportunities fund
Investments
Investments in limited partnership and limited liability companies	$ 32,000

Investments - Gain Loss on Inve

Investments - Gain Loss on Investment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Investments
Allowance for loan losses	$ 0		$ 0		$ 0
Proceeds from sales and redemptions in AFS securities	53.7	$ 57.1	97.1	$ 120.1
Gross realized gains from sales and redemptions in AFS securities	0.4	$ 0.7	0.6	0.8
Gross realized losses from sales and redemptions of AFS investments	$ 0.3		$ 0.4	$ 0.4

Investments - Net Investment In

Investments - Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net investment income included in net income (loss)
Gross investment income	$ 17,925	$ 15,886	$ 35,603	$ 29,921
Less: expenses	527	338	1,047	664
Net investment income	17,398	15,548	34,556	29,257
Fixed income securities
Net investment income included in net income (loss)
Gross investment income	16,531	14,016	32,650	26,408
Commercial levered loans
Net investment income included in net income (loss)
Gross investment income	159	301	378	665
Net limited partnerships gains
Net investment income included in net income (loss)
Gross investment income	1,143	1,563	2,394	2,825
Other
Net investment income included in net income (loss)
Gross investment income	$ 92	$ 6	$ 181	$ 23

Investments - Other Details (De

Investments - Other Details (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Investments
Securities required to be held with various regulatory authorities as required by law	$ 211.2	$ 188.6
Fair value of assets on deposit in collateral agreements	358.4	358.5
Carrying value of assets on deposit in collateral agreements	$ 347.4	$ 368

Fair Value Measurements - Asset

Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2018	Jun. 30, 2019
Major categories of assets measured at fair value on a recurring basis
Investments in limited partnership and limited liability companies		$ 53,432	$ 62,351
Transfers from level 1 to level 2		0	0
Transfer from level 2 to level 3		126,500
Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		1,693,382	1,883,989
Total assets at fair value		1,746,814	1,946,340
Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		1,566,885	1,755,971
Level 3 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		126,497	128,018
U.S. Treasury securities | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		90,328	85,087
U.S. Treasury securities | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		90,328	85,087
Government agency securities | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities			473
Government agency securities | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities			473
Corporate debt securities
Major categories of assets measured at fair value on a recurring basis
Transfer from level 2 to level 3	$ 119,004
Corporate debt securities | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		1,192,430	1,316,365
Corporate debt securities | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		1,065,933	1,188,347
Corporate debt securities | Level 3 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		126,497	128,018
Municipal debt obligations | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		6,085	8,491
Municipal debt obligations | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		6,085	8,491
ABS | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		83,581	87,554
ABS | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		83,581	87,554
CLO | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		156,913	172,141
CLO | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		156,913	172,141
CMBS | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		53,843	66,561
CMBS | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		53,843	66,561
RMBS - non-agency | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		79,551	77,148
RMBS - non-agency | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		79,551	77,148
RMBS - agency | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		30,651	70,169
RMBS - agency | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		30,651	70,169
Carrying Value | Recurring
Major categories of assets measured at fair value on a recurring basis
Investments in limited partnership and limited liability companies		$ 53,432	$ 62,351

Fair Value Measurements - Carry

Fair Value Measurements - Carrying and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets
Commercial levered loans	$ 16,168
Liabilities
Notes payable	185,979
Total notes payable	$ 182,517	$ 182,355
Fair value of the notes payable as a percentage of par value	101.60%	100.50%
Carrying Value
Assets
Commercial levered loans	$ 16,549	$ 16,915
Liabilities
Notes payable	182,993	183,000
Unamortized debt issuance costs	(476)	(645)
Total notes payable	182,517	182,355
Fair Value
Assets
Commercial levered loans		15,858
Liabilities
Notes payable	186,000	183,999
Level 2 | Fair Value
Liabilities
Notes payable	185,979	183,999
Level 3 | Fair Value
Assets
Commercial levered loans	$ 16,168	$ 15,858

Fair Value Measurements - Secur

Fair Value Measurements - Securities Measured Using Level 3 (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Changes in fair value of securities measured using Level 3 inputs
Fair value at beginning of period	$ 126,497
Other comprehensive income (loss)	921
Net realized loss	(71)
Purchases	3,516
Settlements	(2,845)
Transfers into Level 3			$ 126,500
Fair value at end of period	$ 128,018		$ 126,497
Corporate debt securities
Changes in fair value of securities measured using Level 3 inputs
Other comprehensive income (loss)		$ (558)
Net realized loss		(6)
Purchases		4,127
Settlements		(895)
Transfers into Level 3		119,004
Fair value at end of period		$ 121,672

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) - Components of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of period, gross	$ 5,257	$ (4,696)	$ (29,760)	$ 22,265
Unrealized holding gains (losses) on fixed income securities, gross	29,830	(13,268)	64,633	(40,031)
Amounts reclassified into net loss, gross	189	776	(25)	974
Other comprehensive income, gross	29,641	(14,044)	64,658	(41,005)
Balance at the end of period, gross	34,898	(18,740)	34,898	(18,740)
Balance at the beginning of period, tax	(180)	(2,534)	(7,445)	2,968
Unrealized holding gains (losses) on fixed income securities, tax	6,206	(2,769)	13,447	(8,425)
Amounts reclassified into net loss, tax	(28)	45	(52)	(109)
Other comprehensive income, tax	6,234	(2,814)	13,499	(8,316)
Balance at the end of period, tax	6,054	(5,348)	6,054	(5,348)
Balance at the beginning of period, net	5,437	(2,162)	(22,315)	19,297
Unrealized holding gains (losses) on fixed income securities	23,624	(10,499)	51,186	(31,606)
Amounts reclassified into net income	217	731	27	1,083
Other comprehensive income (loss)	23,407	(11,230)	51,159	(32,689)
Balance at the end of period, net	$ 28,844	$ (13,392)	$ 28,844	$ (13,392)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Unrealized gains on securities, tax	$ (28)	$ 45	$ (52)	$ (109)
Total reclassifications	217	731	27	1,083
Realized Investment Gains (Losses)
Unrealized gains on securities	189	776	(25)	974
Income Tax Benefit
Unrealized gains on securities, tax	$ (28)	$ 45	$ (52)	$ (109)

Related-Party Information (Deta

Related-Party Information (Details) - USD ($) $ in Thousands	Mar. 15, 2019	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Related party transactions
Equity distribution for executive loan repayment			$ 4,174
Severance expense		$ 7,200		$ 7,200
Executives
Related party transactions
Loans payable					$ 4,200
Repayment of loans	$ 4,200
Paid-In Capital
Related party transactions
Equity distribution for executive loan repayment	$ 4,200		$ 4,174

Insurance Operations - Reinsura

Insurance Operations - Reinsurance Ceded and Assumed (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Written premiums
Direct written premiums	$ 234,306	$ 221,116	$ 489,291	$ 468,205
Assumed from other companies	726	1,439	1,579	3,770
Ceded to other companies	24,464	9,520	70,400
Ceded to other companies				(2,412)
Net written premiums	210,568	213,035	420,470	474,387
Earned premiums
Direct earned premiums	231,088	212,835	454,090	411,736
Assumed from other companies	932	2,294	1,874	7,164
Ceded to other companies	29,540	32,006	57,876	68,321
Net premiums earned	$ 202,480	$ 183,123	$ 398,088	$ 350,579
Percent of amount assumed to net	0.50%	1.30%	0.50%	2.00%
Losses and loss adjustment expenses incurred
Direct net losses and loss adjustment expenses incurred	$ 166,696	$ 135,069	$ 302,044	$ 255,453
Assumed from other companies	(26,023)	(5,669)	(23,204)	(6,678)
Ceded to other companies	13,558	19,467	33,392	36,988
Net losses and loss adjustment expenses incurred	$ 127,115	$ 109,933	$ 245,448	$ 211,787

Insurance Operations - Quota Sh

Insurance Operations - Quota Share Arrangements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Insurance activity
Ceded earned premium	$ 29,540	$ 32,006	$ 57,876	$ 68,321
Increase/reduction to pre-tax income	(11,119)	(18,375)	(28,629)	(30,943)
Whole Account Quota Share Reinsurance Agreement
Insurance activity
Ceded written premium (return of ceded prepaid)		(18,831)	(3)	(68,800)
Ceded earned premium		1,368		14,544
Ceded earned premium			(3)
(Increase) reduction to net loss and loss adjustment expenses incurred	(2,255)	642	(2,207)	8,548
Reduction to policy acquisition expenses	$ 2,255	624	2,205	4,906
Increase/reduction to pre-tax income		$ 102	$ (1)	$ 1,090

Insurance Operations - Gross Wr

Insurance Operations - Gross Written Premiums (Details) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019USD ($)item	Jun. 30, 2018USD ($)item	Jun. 30, 2019USD ($)item	Jun. 30, 2018USD ($)item	Dec. 31, 2018
Insurance Operations
Percentage of direct premiums sourced from distribution party acquired by a third party insurance carrier					13.50%
Number of distribution partners contributing the largest amounts of direct written premiums | item	3	3	3	3
Direct premiums written by the largest distribution partners | $	$ 80.4	$ 72.5	$ 133.3	$ 131.9

Insurance Operations - Unpaid L

Insurance Operations - Unpaid Losses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Gross unpaid losses and loss expenses, at beginning of year	$ 1,396,812	$ 1,258,237
Ceded unpaid losses and loss expenses, at beginning of year	185,295	201,156
Net reserve for losses and loss expenses, at beginning of year	1,211,517	1,057,081
Incurred losses and loss expenses occurring in the:
Current year	238,634	214,392
Prior years	(3,128)	(2,605)
Prior years attributable to adjusted premium	9,942
Total incurred losses and loss expenses	245,448	211,787
Paid losses and loss expenses for claims occurring in the:
Current year	18,725	17,179
Prior years	164,601	127,696
Total paid losses and loss expenses for claims	183,326	144,875
Net reserves for losses and loss expenses, at end of period	1,273,639	1,123,993
Ceded unpaid losses and loss expenses, at end of period	210,021	202,928
Gross unpaid losses and loss expenses, at end of period	1,483,660	1,326,921
Commercial Auto
Incurred losses and loss expenses occurring in the:
Prior years	(6,700)	(7,800)
General Liability
Incurred losses and loss expenses occurring in the:
Prior years	13,200	8,300
Workers' Compensation
Incurred losses and loss expenses occurring in the:
Prior years	(14,500)	(7,200)
Commercial Multiple Peril
Incurred losses and loss expenses occurring in the:
Prior years		6,100
Marine Liability
Incurred losses and loss expenses occurring in the:
Prior years	$ 4,600	$ (2,100)

Income Taxes (Details)

Income Taxes (Details) - subsidiary	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Number of foreign subsidiaries			1
Effective income tax rate	21.80%	20.30%	21.80%	20.30%
PSGH | Bermuda
Statutory income tax rate			0.00%	0.00%

Debt (Details)

Debt (Details) - USD ($) $ in Millions	Mar. 15, 2019	Mar. 14, 2019
Debt
Number of days before the maturity of the senior notes due November 2020 that the credit facility matures	91 days
Number of days before the maturity of the senior notes due November 2020, as amended or replaced, that the credit facility matures	91 days
Maximum borrowing capacity	$ 50	$ 25

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 235,032	$ 222,555	$ 490,870	$ 471,975
Commercial Auto
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 54,296	$ 34,451	$ 96,080	$ 72,702
Gross written premiums, percent	23.10%	15.50%	19.60%	15.40%
General Liability
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 83,156	$ 81,585	$ 154,451	$ 145,630
Gross written premiums, percent	35.40%	36.70%	31.50%	30.90%
Workers' Compensation
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 34,921	$ 45,278	$ 124,983	$ 144,048
Gross written premiums, percent	14.90%	20.30%	25.40%	30.50%
Commercial Multiple Peril
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 17,040	$ 18,812	$ 36,674	$ 34,072
Gross written premiums, percent	7.20%	8.40%	7.50%	7.20%
All Other Lines
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 45,619	$ 42,429	$ 78,682	$ 75,523
Gross written premiums, percent	19.40%	19.10%	16.00%	16.00%
Customer Segment
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 229,750	$ 207,282	$ 426,271	$ 392,095
Gross written premiums, percent	97.80%	93.10%	86.80%	83.10%
Construction
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 32,495	$ 26,575	$ 55,743	$ 49,528
Gross written premiums, percent	13.80%	11.90%	11.40%	10.50%
Consumer Services
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 37,893	$ 28,387	$ 65,378	$ 50,294
Gross written premiums, percent	16.10%	12.80%	13.30%	10.60%
Marine and Energy
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 20,845	$ 18,884	$ 36,779	$ 34,146
Gross written premiums, percent	8.90%	8.50%	7.50%	7.20%
Media and Entertainment
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 39,300	$ 37,977	$ 76,842	$ 78,231
Gross written premiums, percent	16.70%	17.10%	15.70%	16.60%
Professional Services
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 29,104	$ 27,939	$ 58,666	$ 57,504
Gross written premiums, percent	12.40%	12.50%	11.90%	12.20%
Real Estate
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 46,614	$ 44,072	$ 75,349	$ 72,030
Gross written premiums, percent	19.90%	19.80%	15.30%	15.30%
Transportation
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 23,499	$ 23,448	$ 57,514	$ 50,362
Gross written premiums, percent	10.00%	10.50%	11.70%	10.70%
Other
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 5,282	$ 15,273	$ 64,599	$ 79,880
Gross written premiums, percent	2.20%	6.90%	13.20%	16.90%

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Basic EPS- Income:
Net income (loss) available to common stockholders, continuing operations	$ 8,696	$ 14,652	$ 22,391	$ 24,662
Net income (loss) available to common stockholders, discontinued operations	$ (78)	$ (198)	$ (333)	$ 587
Basic EPS - Shares:
Shares outstanding, basic (in shares)	38,851	38,743	38,851	38,743
Basic EPS - Per Share Amount:
Net Income available to common stockholders, continuing operations (in dollars per share)	$ 0.22	$ 0.38	$ 0.58	$ 0.64
Net Income available to common stockholders, discontinued operations (in dollars per share)		$ (0.01)	$ (0.01)	$ 0.02
Effect of dilutive securities - Shares:
Stock compensation plans (in shares)	604	698	604	698
Effect of dilutive securities - Per Share Amount:
Stock compensation plans, continuing operations (in dollars per share)		$ 0.01	$ 0.01	$ 0.01
Stock compensation plans, discontinued operations (in dollars per share)				$ 0.01
Diluted EPS - Income
Diluted EPS, Diluted net income - continuing operations	$ 8,696	$ 14,652	$ 22,391	$ 24,662
Diluted EPS, Diluted net income - discontinued operations	$ (78)	$ (198)	$ (333)	$ 587
Diluted EPS - Shares
Shares outstanding, diluted (in shares)	39,455	39,441	39,455	39,441
Diluted EPS - Per Share Amount
Diluted EPS, continuing operations (in dollars per share)	$ 0.22	$ 0.37	$ 0.57	$ 0.63
Diluted EPS, discontinued operations (in dollars per share)		$ (0.01)	$ (0.01)	$ 0.01

Subsequent Events - Initial Pub

Subsequent Events - Initial Public Offering (Details) - Subsequent Event $ / shares in Units, $ in Millions	Jul. 29, 2019USD ($)$ / sharesshares
GS Investors
Subsequent Events
Ownership percentage	40.90%
TPG Investors
Subsequent Events
Ownership percentage	39.40%
IPO
Subsequent Events
Total shares sold	7,857,145
Number of shares issued	4,285,715
Price per share | $ / shares	$ 14
Net proceeds from the IPO | $	$ 51.6
IPO | Principal Stockholders
Subsequent Events
Shares sold by principal shareholders in offering	3,571,430

Subsequent Events - 2019 Equity

Subsequent Events - 2019 Equity Incentive Plan (Details) - Subsequent Event - USD ($) $ in Millions	Jul. 25, 2019	Jul. 24, 2019
2019 Equity Incentive Plan
Subsequent Events
Number of common stock authorized		4,500,000
Number of common shares reserved for issuance		4,500,000
2019 Equity Incentive Plan | Long-term Equity Incentive Plan Awards (RSUs)
Subsequent Events
Restricted stock unit awards granted	183,095
Percentage of time-vesting awards	50.00%
Percentage of performance vesting awards	50.00%
Grant date fair value	$ 2.6
2019 Equity Incentive Plan | Supplemental RSUs
Subsequent Events
Restricted stock unit awards granted	1,302,198
Percentage of time-vesting awards	100.00%
Grant date fair value	$ 18.2
2019 Equity Incentive Plan | Supplemental RSUs | At Grant Date
Subsequent Events
Vesting percentage	25.00%
2019 Equity Incentive Plan | Supplemental RSUs | At Two Years
Subsequent Events
Vesting percentage	25.00%
2019 Equity Incentive Plan | Supplemental RSUs | At Three Years
Subsequent Events
Vesting percentage	50.00%
2019 Equity Incentive Plan | Founders Grant Awards, RSUs
Subsequent Events
Restricted stock unit awards granted	250,000
Grant date fair value	$ 3.5
Cliff vesting period	3 years
2019 Equity Incentive Plan | Director RSUs
Subsequent Events
Restricted stock unit awards granted	26,399
Grant date fair value	$ 0.4
2010 Equity Incentive Plan | Restricted stock unit
Subsequent Events
Number of RSUs converted into RSUs based on common stock upon merger	668,135

Subsequent Events - 2019 Employ

Subsequent Events - 2019 Employee Stock Purchase Plan (Details)	Jul. 24, 2019shares
Subsequent Event | 2019 Employee Stock Purchase Plan
Subsequent Events
Number of common shares reserved for sale	1,000,000