ProSight Global (PROS) 10-Q 6 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 06, 2019
Document and Entity Information
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Entity Registrant Name	ProSight Global, Inc.
Entity Current Reporting Status	Yes
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		43,021,300
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001634038
Amendment Flag	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets
Fixed income securities, available-for-sale at fair value (amortized cost $1,985,250 in 2019 and $1,729,755 in 2018)	$ 2,025,955	$ 1,693,382
Commercial levered loans at amortized cost (fair value $14,323 in 2019 and $15,858 in 2018)	14,601	16,915
Limited partnerships and limited liability companies at fair value (cost $61,015 in 2019 and $51,903 in 2018)	65,322	53,432
Short-term investments	14,398	36,661
Total investments	2,120,276	1,800,390
Cash and cash equivalents	24,577	22,279
Restricted cash	7,451	7,621
Accrued investment income	13,452	12,279
Premiums and other receivables, net	179,920	200,347
Receivable from reinsurers on paid losses	5,849	12,428
Reinsurance receivable on unpaid losses	213,977	185,295
Deferred policy acquisition costs	103,542	93,613
Prepaid reinsurance premiums	47,285	44,626
Net deferred income taxes	9,361	33,239
Goodwill and net intangible assets	29,196	29,219
Fixed assets and capitalized software, net	37,679	39,001
Funds withheld related to sale of affiliate	19,566	19,397
Other assets	31,255	57,653
Assets of discontinued operations	20,098	19,719
Total assets	2,863,484	2,577,106
Liabilities
Reserve for unpaid losses and loss adjustment expenses	1,515,224	1,396,812
Reserve for unearned premiums	472,761	435,933
Ceded reinsurance payable	4,099	13,281
Notes payable, net of debt issuance costs	164,609	182,355
Funds held under reinsurance agreements	68,243	63,165
Other liabilities	81,029	73,474
Liabilities of discontinued operations	26,936	22,256
Total liabilities	2,332,901	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; 43,034,220 and 38,864,289 shares issued and 43,021,300 and 38,851,369 shares outstanding in 2019 and 2018, respectively	430	389
Paid-in capital	661,357	607,260
Accumulated other comprehensive income (loss)	33,930	(22,315)
Retained deficit	(164,934)	(195,304)
Treasury shares - at cost (12,920 shares)	(200)	(200)
Total stockholders’ equity	530,583	389,830
Total liabilities and stockholders’ equity	$ 2,863,484	$ 2,577,106

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Fixed income securities, available-for-sale, amortized cost	$ 1,985,250	$ 1,729,755
Commercial levered loans, fair value	14,323	15,858
Limited partnerships and limited liability companies, cost	$ 61,015	$ 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	43,034,220	38,864,289
Common stock, shares outstanding	43,021,300	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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Operations
Gross written premiums	$ 227,196	$ 201,296	$ 718,066	$ 673,271
Net premiums earned	202,455	187,108	600,543	537,687
Net investment income	16,974	14,044	51,530	43,301
Realized investment gains, net	245	406	495	805
Other income	196	168	386	504
Total revenues	219,870	201,726	652,954	582,297
Expenses:
Net losses and loss adjustment expenses incurred	127,196	109,976	372,644	321,763
Policy acquisition expenses	45,953	44,195	138,059	125,819
General and administrative expenses	25,967	25,051	79,189	75,153
Interest expense	3,216	3,092	9,725	9,207
Other expense	7,162		14,332
Total expenses	209,494	182,314	613,949	531,942
Income from continuing operations before income taxes	10,376	19,412	39,005	50,355
Income tax provision:
Current	146	184	369	(220)
Deferred	1,869	3,625	7,884	10,310
Total income tax expense	2,015	3,809	8,253	10,090
Net income from continuing operations	8,361	15,603	30,752	40,265
Discontinued operations:
Net (loss) income from discontinued operations	(49)	(429)	(382)	158
Net income	$ 8,312	$ 15,174	$ 30,370	$ 40,423
Earnings per share - basic:
Net income from continuing operations	$ 0.20	$ 0.40	$ 0.77	$ 1.04
Net income	0.19	0.39	0.76	1.04
Earnings per share – diluted:
Net income from continuing operations	0.19	0.40	0.76	1.02
Net income	$ 0.19	$ 0.38	$ 0.75	$ 1.02

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited ) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Comprehensive Income
Net income	$ 8,312	$ 15,174	$ 30,370	$ 40,423
Other comprehensive income (loss), net of taxes:
Change in unrealized holding gains (losses) on securities, net of deferred tax expense (benefit) of $2,651 and $16,098 in 2019 and $335 and $(8,090) in 2018	9,292	(528)	60,478	(32,134)
Less reclassification adjustment for gains included in net income, net of tax expense of $156 and $104 in 2019 and $278 and $169 in 2018	4,206	29	4,233	1,112
Other comprehensive income (loss)	5,086	(557)	56,245	(33,246)
Comprehensive income	$ 13,398	$ 14,617	$ 86,615	$ 7,177

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Comprehensive Income
Change in unrealized holding (losses) gains on securities, deferred tax expense (benefit)	$ 2,651	$ 335	$ 16,098	$ (8,090)
Reclassification adjustment for (losses) gains included in net income, tax expense (benefit)	$ 156	$ 278	$ 104	$ 169

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						40,423
Balance at the end of the period at Sep. 30, 2018	387	606,905	(13,949)	(209,424)	(200)	383,719
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
Increase (decrease) in Stockholders' Equity
Stock based employee compensation plan		161				161
New unrealized gain (loss) on investment securities, net of deferred tax expense (benefit)			(557)			(557)
Net income				15,174		15,174
Balance at the end of the period at Sep. 30, 2018	387	606,905	(13,949)	(209,424)	(200)	383,719
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						30,370
Balance at the end of the period at Sep. 30, 2019	430	661,357	33,930	(164,934)	(200)	530,583
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
Increase (decrease) in Stockholders' Equity
Stock based employee compensation plan		6,785				6,785
New unrealized gain (loss) on investment securities, net of deferred tax expense (benefit)			5,086			5,086
Proceeds from common stock sold in initial public offering, net of offering costs	42	51,557				51,599
Shares cancelled	(1)	1
Retirement of common stock (tax payments on equity compensation)		(149)				(149)
Net income				8,312		8,312
Balance at the end of the period at Sep. 30, 2019	$ 430	$ 661,357	$ 33,930	$ (164,934)	$ (200)	$ 530,583

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited ) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Statement of Stockholders' Equity
Net unrealized (loss) on investment securities, deferred tax (benefit)	$ 2,495	$ 6,234	$ 7,265	$ 57	$ (2,814)	$ (5,502)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited ) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities
Net income from continuing operations	$ 30,752	$ 40,265
Net (loss) income from discontinued operations	(382)	158
Net Income	30,370	40,423
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for deferred taxes	7,884	10,310
Net realized investment gains	(495)	(805)
Net limited partnerships gains	(2,917)	(2,893)
Net accretion from bonds and commercial loans	(1,568)	(3,017)
Depreciation and amortization	6,222	5,383
Amortization of debt issuance costs	254	254
Stock based compensation	6,862	559
Changes in:
Premiums and other receivables	20,427	(34,112)
Receivable from reinsurers on paid losses and reinsurance receivable from unpaid losses	(22,103)	(13,555)
Ceded reinsurance payable	(9,182)	23,085
Accrued investment income	(1,173)	(4,201)
Deferred policy acquisition costs	(9,929)	(34,388)
Prepaid reinsurance premiums	(2,659)	62,666
Reserve for unpaid losses and loss adjustment expenses	118,412	110,871
Reserve for unearned premiums	36,828	72,184
Funds withheld related to sale of affiliate	(169)	518
Funds held under reinsurance agreements	5,078	(45,369)
Other assets	22,249	11,155
Other liabilities	7,555	9,395
Total adjustments	181,576	168,040
Net cash provided by operating activities – continuing operations	212,328	208,305
Net cash used in operating activities – discontinued operations	(267)	(230)
Net cash provided by operating activities	212,061	208,075
Investing activities
Purchases of available-for-sale fixed income securities	(423,335)	(315,137)
Sales of available-for-sale fixed income securities	67,848	78,488
Redemptions of available-for-sale fixed income securities	100,713	60,806
Purchases of commercial levered loans		(2,612)
Redemptions of commercial levered loans	2,298	10,142
Purchases of limited partnerships	(13,016)	(32,472)
Distributions and redemptions from limited partnerships	4,043	2,351
Purchases of short-term investments	(293,065)	(146,351)
Sales of short-term investments	315,767	115,728
Acquisition of fixed assets and capitalized software	(4,903)	(5,964)
Net cash used in investing activities - continuing operations	(243,650)	(235,021)
Net cash provided by (used in) investing activities - discontinued operations	(380)	2,501
Net cash used in investing activities	(244,030)	(232,520)
Financing activities
Proceeds from shares issued	51,599
Tax withholding on stock compensation awards	(149)
Proceeds from notes payable		5,000
Repayment of notes payable	(18,000)
Net cash provided by financing activities	33,450	5,000
Net change in cash and cash equivalents	1,481	(19,445)
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	(387)	(3,570)
Cash, cash equivalents and restricted cash at end of period - continuing operations	$ 32,028	$ 56,179

Basis of Reporting

Basis of Reporting	9 Months Ended
	Sep. 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 prior to and including June 30, 2019, 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. 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 held approximately 40.9% of the Company’s outstanding common stock and the TPG Investors held approximately 39.4% of the Company’s outstanding common stock. On August 15, 2019 the Principal Stockholders completed the sale of 1,178,570 shares of the Company’s common stock at a price of $14.00 per share less the underwriting discount pursuant to the underwriters’ exercise of their over-allotment option granted in connection with the IPO. The offering was registered pursuant to the registration statement on Form S-1, which the SEC declared effective on July 24, 2019. The Company did not receive any of the proceeds from the sale of the shares of common stock of the Company sold by the Principal Stockholders in this offering. Following this offering, the GS Investors held approximately 39.5% of the Company’s outstanding common stock and the TPG Investors held approximately 38.0% of the Company’s outstanding common stock. 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	9 Months Ended
	Sep. 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 nine months ended September 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 ASU 2016-01 and does not expect a material impact 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 the impact of 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 unobservable 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	9 Months Ended
	Sep. 30, 2019
Supplemental Cash Flow
Supplemental Cash Flow	3. Supplemental Cash Flow Supplemental cash flow information for the nine months ended September 30, 2019 and 2018, is as follows: Nine Months Ended September 30 ($ in thousands) 2019 2018 Cash paid during the period for: Interest $ 6,783 $ 6,159 In September 2019, the Company withheld 8,388 shares of common stock from an employee related to a tax liability incurred upon the settlement of vested restricted stock units (RSUs). The number of shares of common stock issued, upon the settlement of vested RSUs net of tax withholding, was 22,203.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 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 an insignificant amount and $0.4 million for the three and nine months ended September 30, 2019, respectively. Net loss for discontinued operations was $0.4 million and net income for discontinued operations was $0.2 million for the three and nine months ended September 30, 2018, respectively. The following represents the carrying amounts of assets and liabilities associated with the exit from the insurance market in the U.K. reported as discontinued operations in its consolidated balance sheet: September 30, December 31, ($ in thousands) 2019 2018 Assets Total cash and investments $ 9,993 $ 10,436 Other assets 10,105 9,283 Total assets $ 20,098 $ 19,719 Liabilities Unpaid losses and loss adjustment expenses $ 19,189 $ 14,030 Other liabilities 7,747 8,226 Total liabilities $ 26,936 $ 22,256

Investments

Investments	9 Months Ended
	Sep. 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 September 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 $ 72,175 $ 1,280 $ (104) $ 73,351 Government agency securities 4,840 6 — 4,846 Corporate debt securities 1,348,716 31,712 (4,646) 1,375,782 Municipal debt obligations 14,434 323 (1) 14,756 ABS 84,227 1,139 (150) 85,216 CLO 181,843 160 (2,259) 179,744 CMBS 67,986 2,416 (42) 70,360 RMBS - non-agency 63,803 10,690 (179) 74,314 RMBS - agency 147,226 940 (580) 147,586 Total fixed income securities $ 1,985,250 $ 48,666 $ (7,961) $ 2,025,955 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 September 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 $ 9,666 $ (12) $ 19,521 $ (92) $ 29,187 $ (104) Corporate debt securities 116,619 (1,934) 127,966 (2,712) 244,585 (4,646) Municipal debt obligations 6,163 (1) — — 6,163 (1) ABS 21,344 (95) 4,746 (55) 26,090 (150) CLO 72,748 (672) 63,636 (1,587) 136,384 (2,259) CMBS 6,555 (9) 6,081 (33) 12,636 (42) RMBS - non-agency 922 (2) 2,532 (177) 3,454 (179) RMBS - agency 54,026 (157) 11,736 (423) 65,762 (580) Total $ 288,043 $ (2,882) $ 236,218 $ (5,079) $ 524,261 $ (7,961) 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 336 and 708 fixed income securities that were in an unrealized loss position as of September 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 nine months ended September 30, 2019 and 2018. (c) The amortized cost and fair value of fixed income securities, which excludes the Company’s structured securities portfolio, at September 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. September 30, 2019 Amortized Fair ($ in thousands) Cost Value Due in one year or less $ 97,372 $ 97,585 Due after one through five years 722,887 733,382 Due after five through ten years 514,633 531,014 Due after ten years 105,273 106,754 1,440,165 1,468,735 Structured securities: ABS 84,227 85,216 CLO 181,843 179,744 CMBS 67,986 70,360 RMBS - non-agency 63,803 74,314 RMBS - agency 147,226 147,586 Total $ 1,985,250 $ 2,025,955 The Company did not have any non-income producing fixed income investments as of September 30, 2019 and December 31, 2018, respectively. (d) The Company elected to account for its investments in limited partnerships and limited liability companies of $65.3 million and $53.4 million at September 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 $35.2 million at September 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 are 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 September 30, 2019 and December 31, 2018, respectively. (f) Proceeds from sales and redemptions in AFS securities totaled $71.5 million and $19.2 million for the three months ended September 30, 2019 and 2018, respectively. Proceeds from sales and redemptions in AFS securities totaled $168.6 million and $139.3 million for the nine months ended September 30, 2019 and 2018, respectively. Gross realized gains from sales and redemptions in AFS securities totaled $0.3 million and $0.5 million for the three months ended September 30, 2019 and 2018, respectively, and $0.9 million and $1.3 million for the nine months ended September 30, 2019 and 2018, respectively. Gross realized losses from sales and redemptions of AFS investments totaled an insignificant amount and $0.1 million for the three months ended September 30, 2019 and 2018, respectively, and $0.4 million and $0.5 million for the nine months ended September 30, 2019 and 2018. (g) Net investment income included in net income from continuing operations in the consolidated statements of operations from each major category of investments for the three and nine months ended September 30, 2019 and 2018, is as follows: ($ in thousands) Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 Fixed income securities $ 16,764 $ 14,422 $ 49,414 $ 40,830 Commercial levered loans 208 149 586 814 Net limited partnerships gains 468 68 2,862 2,893 Other 101 56 282 79 Gross investment income 17,541 14,695 53,144 44,616 Less: expenses 567 651 1,614 1,315 Net investment income $ 16,974 $ 14,044 $ 51,530 $ 43,301 (h) Included in investments at September 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 $209.1 million and $188.6 million, respectively. Fair value and carrying value of assets in the amount of $364.6 million and $353.0 million, respectively, were on deposit in collateral agreements at September 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 levered 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 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 levered loans and RMBS.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 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 September 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 September 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): September 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 $ — $ 73,351 $ — $ 73,351 Government agency securities — 4,846 — 4,846 Corporate debt securities — 1,246,196 129,586 1,375,782 Municipal debt obligations — 14,756 — 14,756 ABS — 85,216 — 85,216 CLO — 179,744 — 179,744 CMBS — 70,360 — 70,360 RMBS - non agency — 74,314 — 74,314 RMBS - agency — 147,586 — 147,586 Total fixed income securities $ — $ 1,896,369 $ 129,586 2,025,955 Investments measured at net asset value: Limited partnerships and limited liability companies 65,322 Total assets at fair value $ 2,091,277 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 nine months ended September 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 to record limited partnerships and limited liability companies is consistent with its objective for such investments. As such, the entire limited partnership portfolio of $65.3 million and $53.4 million as of September 30, 2019 and December 31, 2018, respectively, was recorded using net asset value, which the Company has determined to be the best indicator of fair value for these investments. The following tables disclose the carrying value and fair value of financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets as of September 30, 2019 and December 31, 2018: September 30, 2019 Carrying Fair Value ($ in thousands) Value Total Level 1 Level 2 Level 3 Assets Commercial levered loans $ 14,601 $ 14,323 $ — $ — $ 14,323 Liabilities Notes payable $ 165,000 $ 167,736 $ — $ 167,736 $ — Unamortized debt issuance costs (391) Total notes payable $ 164,609 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 September 30, 2019, approximated a price equal to $167.7 million or 101.7% of the par value. The fair value of the notes payable at December 31, 2018, approximated a price equal to $184.0 million or 100.5% of the par value. The following tables provides a summary of the changes in the fair value of securities measured using Level 3 inputs during the nine months ended September 30, 2019 and 2018: Level 3 Corporate ($ in thousands) Securities Fair value, December 31, 2018 $ 126,497 Total net gains (losses) for the period included in: Other comprehensive income 1,514 Net realized loss (4) Purchases 4,372 Sales — Issuances — Settlements (2,793) Transfers into Level 3 — Transfers out of Level 3 — Fair value, September 30, 2019 $ 129,586 Level 3 Corporate ($ in thousands) Securities Fair value, December 31, 2017 $ — Total net losses for the period included in: Other comprehensive loss (362) Net realized loss (9) Purchases 7,228 Sales — Issuances — Settlements (1,333) Transfers into Level 3 119,004 Transfers out of Level 3 — Fair value, September 30, 2018 $ 124,528

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 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 nine months ended September 30, 2019 and 2018: ($ in thousands) Gross Tax Net June 30, 2019 $ 34,898 $ 6,054 $ 28,844 Unrealized holding gains on fixed income securities 11,943 2,651 9,292 Amounts reclassified into net income 4,362 156 4,206 Other comprehensive income 7,581 2,495 5,086 September 30, 2019 $ 42,479 $ 8,549 $ 33,930 ($ in thousands) Gross Tax Net June 30, 2018 $ (18,740) $ (5,348) $ (13,392) Unrealized holding losses on fixed income securities (193) 335 (528) Amounts reclassified into net income 307 278 29 Other comprehensive loss (500) 57 (557) September 30, 2018 $ (19,240) $ (5,291) $ (13,949) ($ in thousands) Gross Tax Net December 31, 2018 $ (29,760) $ (7,445) $ (22,315) Unrealized holding gains on fixed income securities 76,576 16,098 60,478 Amounts reclassified into net income 4,337 104 4,233 Other comprehensive income 72,239 15,994 56,245 September 30, 2019 $ 42,479 $ 8,549 $ 33,930 ($ in thousands) Gross Tax Net December 31, 2017 $ 22,265 $ 2,968 $ 19,297 Unrealized holding losses on fixed income securities (40,224) (8,090) (32,134) Amounts reclassified into net income 1,281 169 1,112 Other comprehensive loss (41,505) (8,259) (33,246) September 30, 2018 $ (19,240) $ (5,291) $ (13,949) The following table presents reclassifications out of AOCI attributable to the Company during the three and nine months ended September 30, 2019 and 2018: Line in Consolidated Three Months Ended September 30 Nine Months Ended September 30 ($ in thousands) Statements of Operations 2019 2018 2019 2018 AOCI Unrealized gains on securities Realized investment gains $ 4,362 $ 307 $ 4,337 $ 1,281 Income tax expense 156 278 104 169 Total reclassifications Net realized investment gains $ 4,206 $ 29 $ 4,233 $ 1,112

Related-Party Information

Related-Party Information	9 Months Ended
	Sep. 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 $0.4 million and $7.6 million within Other Expense in the consolidated statements of operations for the three and nine months ended September 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 (P Shares) were forfeited and outstanding RSUs will be treated in accordance with the terms of the applicable award agreements. Additionally, the Company cancelled 137,987 shares of common stock in July 2019 with no consideration as per the terms of the Separation Agreement.

Insurance Operations

Insurance Operations	9 Months Ended
	Sep. 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 September 30 Nine Months Ended September 30 ($ in thousands) 2019 2018 2019 2018 Written premiums Direct written premiums $ 226,209 $ 200,316 $ 715,500 $ 668,521 Assumed from other companies 987 980 2,566 4,750 Ceded to other companies 17,722 21,780 88,122 19,368 Net written premiums $ 209,474 $ 179,516 $ 629,944 $ 653,903 Earned premiums Direct earned premiums $ 229,816 $ 212,084 $ 683,906 $ 623,820 Assumed from other companies 920 1,603 2,794 8,767 Ceded to other companies 28,281 26,579 86,157 94,900 Net earned premiums $ 202,455 $ 187,108 $ 600,543 $ 537,687 Percent of amount assumed to net Losses and loss adjustment expenses incurred Direct net losses and loss adjustment expenses incurred $ 101,855 $ 109,524 $ 403,899 $ 364,977 Assumed from other companies 29,366 4,440 6,162 (2,238) Ceded to other companies 4,025 3,988 37,417 40,976 Net losses and loss adjustment expenses incurred $ 127,196 $ 109,976 $ 372,644 $ 321,763 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 nine months ended September 30, 2019 and 2018 under the WAQS, the Company recorded the following: Three Months Ended September 30 ($ in thousands) 2019 2018 Ceded written premium $ 6 $ 55 Ceded earned premium — 56 (Increase) reduction to net loss and loss adjustment expenses incurred (1,632) 874 Reduction (increase) to policy acquisition expenses 1,632 (823) Reduction to pre-tax income $ - $ 5 Nine Months Ended September 30 ($ in thousands) 2019 2018 Ceded written premium (return of ceded prepaid) $ 3 $ (68,745) Ceded earned premium (3) 14,600 (Increase) reduction to net loss and loss adjustment expenses incurred (3,839) 9,422 Reduction to policy acquisition expenses 3,837 4,083 (Increase) reduction to pre-tax income $ (1) $ 1,095 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 $75.4 million and $52.0 million for the three months ended September 30, 2019 and 2018, respectively. The three distribution partners contributing the largest amounts of direct written premium (excluding the distribution partner above) totaled $208.4 million and $183.9 million for the nine months ended September 30, 2019 and 2018, respectively. Unpaid Losses Unpaid losses are based on individual case estimates for losses reported and include a provision for incurred but not reported (IBNR) losses and loss adjustment expenses. The following table provides a roll forward of the Company’s reserve for unpaid losses and loss adjustment expenses: September 30 ($ 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 reserves 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 356,926 325,810 Prior years 2,367 (4,047) Prior years attributable to adjusted premium 13,351 — Total incurred losses and loss expenses 372,644 321,763 Less: Paid losses and loss expenses for claims occurring in the: Current year 39,742 34,359 Prior years 243,172 178,268 Total paid losses and loss expenses for claims 282,914 212,627 Net reserves for losses and loss expenses, at end of period 1,301,247 1,166,217 Ceded unpaid losses and loss expenses, at end of period 213,977 202,891 Gross unpaid losses and loss expenses, at end of period $ 1,515,224 $ 1,369,108 During the nine months ended September 30, 2019, the Company’s estimated losses and loss expenses for accident years 2018 and prior developed unfavorably by $2.4 million driven by $23.2 million unfavorable development in General Liability lines partially offset by $18.7 million favorable development in Workers’ Compensation lines and $2.7 in Surety lines. In addition, the Company incurred $13.4 million of losses and loss adjustment expenses related to premium adjustments earned during the nine months ended September 30, 2019 attributable to prior accident years. During the nine months ended September 30, 2018, the Company’s estimated losses and loss expenses for accident years 2017 and prior developed favorably by $4.0 million driven by $10.8 million of favorable development in Workers’ Compensation, $11.7 million of favorable development in Commercial Auto lines and $3.1 million of favorable development in Marine Liability lines within the All Other Lines category, partially offset by $12.4 million of unfavorable development in General Liability lines and $9.2 million of unfavorable development in Commercial Multiple Peril lines.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 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 and any discrete items recognized during the period. The Company’s effective tax rates were 19.4% and 19.6% for the three months ended September 30, 2019 and 2018, respectively. The decrease in the effective tax rate in the three months ended September 30, 2019 compared to the same period in 2018 was primarily due to the tax effect of share-based compensation and state income taxes. The Company’s effective tax rates were 21.2% and 20.0% for the nine months ended September 30, 2019 and 2018, respectively. The increase in the effective tax rate in the nine months ended September 30, 2019 compared to the same period in 2018 was primarily due to adjustments recorded on state income taxes.

Debt

Debt	9 Months Ended
	Sep. 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 borrowing capacity from $25.0 million to $50.0 million. On August 8, 2019, the Company used IPO proceeds to repay $18.0 million in outstanding debt under the revolving facility. As of September 30, 2019, the revolving facility had a borrowing capacity of $50.0 million.

Segment Information

Segment Information	9 Months Ended
	Sep. 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 September 30 Nine Months Ended September 30 ($ in thousands) 2019 2018 2019 2018 Customer Segment Construction $ 27,296 $ 22,451 $ 83,039 $ 71,979 Consumer Services 35,502 29,874 100,880 80,168 Marine and Energy 18,151 15,433 54,930 49,579 Media and Entertainment 36,788 31,590 113,630 109,821 Professional Services 27,015 24,750 85,681 82,254 Real Estate 41,566 19,477 116,915 91,507 Transportation 38,180 33,134 95,694 83,496 Customer Segment subtotal 224,498 176,709 650,769 568,804 Other 2,698 24,587 67,297 104,467 Specialty Insurance total $ 227,196 $ 201,296 $ 718,066 $ 673,271 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 September 30 Nine Months Ended September 30 ($ in thousands) 2019 2018 2019 2018 Line of Business Commercial Auto $ 52,693 $ 41,701 $ 148,773 $ 114,403 General Liability 84,932 58,022 239,383 203,652 Workers’ Compensation 27,242 54,858 152,225 198,906 Commercial Multiple Peril 16,276 15,266 52,950 49,338 All Other Lines 46,053 31,449 124,735 106,972 Specialty Insurance total $ 227,196 $ 201,296 $ 718,066 $ 673,271

Earnings per Share

Earnings per Share	9 Months Ended
	Sep. 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 September 30, 2019 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income (loss) available to common stockholders $ 8,361 42,642 $ 0.20 $ (49) 42,642 $ (0.01) Effect of dilutive securities: Stock compensation plans 418 0.01 418 Diluted EPS $ 8,361 43,060 $ 0.19 $ (49) 43,060 $ — Continuing Operations Discontinued Operations (in thousands, except per share amounts) Income Shares Per Share Loss Shares Per Share Three Months Ended September 30, 2018 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income (loss) available to common stockholders $ 15,603 38,743 $ 0.40 $ (429) 38,743 $ (0.01) Effect of dilutive securities: Stock compensation plans 698 — 698 Diluted EPS $ 15,603 39,441 $ 0.40 $ (429) 39,441 $ (0.02) Continuing Operations Discontinued Operations (in thousands, except per share amounts) Income Shares Per Share Loss Shares Per Share Nine Months Ended September 30, 2019 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income (loss) available to common stockholders $ 30,752 40,120 $ 0.77 $ (382) 40,120 $ (0.01) Effect of dilutive securities: Stock compensation plans 541 0.01 541 Diluted EPS $ 30,752 40,661 $ 0.76 $ (382) 40,661 $ (0.01) Continuing Operations Discontinued Operations (in thousands, except per share amounts) Income Shares Per Share Income Shares Per Share Nine Months Ended September 30, 2018 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income available to common stockholders $ 40,265 38,743 $ 1.04 $ 158 38,743 $ — Effect of dilutive securities: Stock compensation plans 698 0.02 698 Diluted EPS $ 40,265 39,441 $ 1.02 $ 158 39,441 $ —

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2019
Share-Based Compensation
Share-Based Compensation	14. Share-Based Compensation 2019 Equity Incentive Plan In connection with, and prior to the completion of the IPO, the Company’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 granted to each award mentioned below: (i) 181,118 annual long-term incentive awards in respect of 2019, 90,559 of which are time-vesting RSUs and 90,559 of which are performance-vesting RSUs, granted to management in connection with the IPO. Time-vesting RSUs are subject to vesting as follows: one-third annual installments on each anniversary of grant date, subject to continued service. Performance-vesting RSUs are subject to vesting as follows: cliff vesting on the third anniversary of the grant date to the extent performance metrics are met, subject to continued service. The fair value of such awards is $2.5 million at grant date. (ii) 1,267,912 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 $17.8 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 $0.4 million at grant date (other than RSUs granted to non-employee directors designated by the Company’s principal stockholders, if any, which will be determined by the Board of Directors). These awards are fully vested on grant date. (v) 668,170 RSUs initially granted under the 2010 Plan that were converted into RSUs based on shares of the Company’s common stock upon the consummation of the merger. The table below summarizes the Company’s stock-based compensation expense for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30 Nine Months Ended September 30 ($ in thousands) 2019 2018 2019 2018 Stock-based compensation $ 6,785 $ 161 $ 6,862 $ 559 Stock-based compensation expense is recognized on a straight-line basis over the vesting period of all awards except when an award requires accelerated recognition. The Company does not apply a forfeiture rate to unvested awards and accounts for forfeitures as they occur. Stock-based compensation expense related to long-term incentive awards and director RSUs are included in General and administrative expenses in the Company’s consolidated statements of operations. Stock-based compensation expense related to supplemental RSU’s and founders grant awards are included in other expenses in the Company’s consolidated statements of operations. The Company began recognizing stock-based compensation expense relating to its 2019 Plan upon its inception and initial stock grants in July 2019. All stock-based compensation expense recognized during the three months ended September 30, 2019 relates to the 2019 Plan. The following table summarizes RSU transactions for the 2019 Plan for the nine months ended September 30, 2019: Number of Shares Weighted Average Grant Unvested outstanding at December 31, 2018 55,264 $ 11.09 Granted 1,725,429 $ 14.00 Vested 398,641 $ 13.60 Forfeited 92,657 $ 14.00 Unvested outstanding at September 30, 2019 1,289,395 $ 14.00 As of September 30, 2019, The Company had approximately $16.1 million of total unrecognized stock-based compensation expense related to RSUs expected to be recognized over a weighted-average period of 2.6 years. 2019 Employee Stock Purchase Plan On July 24, 2019, the 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. There was no expense recognized related to the 2019 ESPP for the nine months ended September 30, 2019.

Legal Proceedings

Legal Proceedings	9 Months Ended
	Sep. 30, 2019
Legal Proceedings
Legal Proceedings	15. 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.

Supplemental Cash Flow (Tables)

Supplemental Cash Flow (Tables)	9 Months Ended
	Sep. 30, 2019
Supplemental Cash Flow
Summary of supplemental cash flow information	Nine Months Ended September 30 ($ in thousands) 2019 2018 Cash paid during the period for: Interest $ 6,783 $ 6,159

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2019
Discontinued Operations
Summary of results of operations and carrying amounts of assets and liabilities for discontinued operations	September 30, December 31, ($ in thousands) 2019 2018 Assets Total cash and investments $ 9,993 $ 10,436 Other assets 10,105 9,283 Total assets $ 20,098 $ 19,719 Liabilities Unpaid losses and loss adjustment expenses $ 19,189 $ 14,030 Other liabilities 7,747 8,226 Total liabilities $ 26,936 $ 22,256

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 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 September 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 $ 72,175 $ 1,280 $ (104) $ 73,351 Government agency securities 4,840 6 — 4,846 Corporate debt securities 1,348,716 31,712 (4,646) 1,375,782 Municipal debt obligations 14,434 323 (1) 14,756 ABS 84,227 1,139 (150) 85,216 CLO 181,843 160 (2,259) 179,744 CMBS 67,986 2,416 (42) 70,360 RMBS - non-agency 63,803 10,690 (179) 74,314 RMBS - agency 147,226 940 (580) 147,586 Total fixed income securities $ 1,985,250 $ 48,666 $ (7,961) $ 2,025,955 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 September 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 $ 9,666 $ (12) $ 19,521 $ (92) $ 29,187 $ (104) Corporate debt securities 116,619 (1,934) 127,966 (2,712) 244,585 (4,646) Municipal debt obligations 6,163 (1) — — 6,163 (1) ABS 21,344 (95) 4,746 (55) 26,090 (150) CLO 72,748 (672) 63,636 (1,587) 136,384 (2,259) CMBS 6,555 (9) 6,081 (33) 12,636 (42) RMBS - non-agency 922 (2) 2,532 (177) 3,454 (179) RMBS - agency 54,026 (157) 11,736 (423) 65,762 (580) Total $ 288,043 $ (2,882) $ 236,218 $ (5,079) $ 524,261 $ (7,961) 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	September 30, 2019 Amortized Fair ($ in thousands) Cost Value Due in one year or less $ 97,372 $ 97,585 Due after one through five years 722,887 733,382 Due after five through ten years 514,633 531,014 Due after ten years 105,273 106,754 1,440,165 1,468,735 Structured securities: ABS 84,227 85,216 CLO 181,843 179,744 CMBS 67,986 70,360 RMBS - non-agency 63,803 74,314 RMBS - agency 147,226 147,586 Total $ 1,985,250 $ 2,025,955
Summary of net investment income included in net income from continuing operations	($ in thousands) Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 Fixed income securities $ 16,764 $ 14,422 $ 49,414 $ 40,830 Commercial levered loans 208 149 586 814 Net limited partnerships gains 468 68 2,862 2,893 Other 101 56 282 79 Gross investment income 17,541 14,695 53,144 44,616 Less: expenses 567 651 1,614 1,315 Net investment income $ 16,974 $ 14,044 $ 51,530 $ 43,301

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Measurements
Summary of major categories of assets measured at fair value on a recurring basis	September 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 $ — $ 73,351 $ — $ 73,351 Government agency securities — 4,846 — 4,846 Corporate debt securities — 1,246,196 129,586 1,375,782 Municipal debt obligations — 14,756 — 14,756 ABS — 85,216 — 85,216 CLO — 179,744 — 179,744 CMBS — 70,360 — 70,360 RMBS - non agency — 74,314 — 74,314 RMBS - agency — 147,586 — 147,586 Total fixed income securities $ — $ 1,896,369 $ 129,586 2,025,955 Investments measured at net asset value: Limited partnerships and limited liability companies 65,322 Total assets at fair value $ 2,091,277 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	September 30, 2019 Carrying Fair Value ($ in thousands) Value Total Level 1 Level 2 Level 3 Assets Commercial levered loans $ 14,601 $ 14,323 $ — $ — $ 14,323 Liabilities Notes payable $ 165,000 $ 167,736 $ — $ 167,736 $ — Unamortized debt issuance costs (391) Total notes payable $ 164,609 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 1,514 Net realized loss (4) Purchases 4,372 Sales — Issuances — Settlements (2,793) Transfers into Level 3 — Transfers out of Level 3 — Fair value, September 30, 2019 $ 129,586 Level 3 Corporate ($ in thousands) Securities Fair value, December 31, 2017 $ — Total net losses for the period included in: Other comprehensive loss (362) Net realized loss (9) Purchases 7,228 Sales — Issuances — Settlements (1,333) Transfers into Level 3 119,004 Transfers out of Level 3 — Fair value, September 30, 2018 $ 124,528

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2019
Accumulated Other Comprehensive Income (Loss)
Summary of the components of accumulated other comprehensive income (loss)	($ in thousands) Gross Tax Net June 30, 2019 $ 34,898 $ 6,054 $ 28,844 Unrealized holding gains on fixed income securities 11,943 2,651 9,292 Amounts reclassified into net income 4,362 156 4,206 Other comprehensive income 7,581 2,495 5,086 September 30, 2019 $ 42,479 $ 8,549 $ 33,930 ($ in thousands) Gross Tax Net June 30, 2018 $ (18,740) $ (5,348) $ (13,392) Unrealized holding losses on fixed income securities (193) 335 (528) Amounts reclassified into net income 307 278 29 Other comprehensive loss (500) 57 (557) September 30, 2018 $ (19,240) $ (5,291) $ (13,949) ($ in thousands) Gross Tax Net December 31, 2018 $ (29,760) $ (7,445) $ (22,315) Unrealized holding gains on fixed income securities 76,576 16,098 60,478 Amounts reclassified into net income 4,337 104 4,233 Other comprehensive income 72,239 15,994 56,245 September 30, 2019 $ 42,479 $ 8,549 $ 33,930 ($ in thousands) Gross Tax Net December 31, 2017 $ 22,265 $ 2,968 $ 19,297 Unrealized holding losses on fixed income securities (40,224) (8,090) (32,134) Amounts reclassified into net income 1,281 169 1,112 Other comprehensive loss (41,505) (8,259) (33,246) September 30, 2018 $ (19,240) $ (5,291) $ (13,949)
Summary of reclassifications out of accumulated other comprehensive income (loss)	Line in Consolidated Three Months Ended September 30 Nine Months Ended September 30 ($ in thousands) Statements of Operations 2019 2018 2019 2018 AOCI Unrealized gains on securities Realized investment gains $ 4,362 $ 307 $ 4,337 $ 1,281 Income tax expense 156 278 104 169 Total reclassifications Net realized investment gains $ 4,206 $ 29 $ 4,233 $ 1,112

Insurance Operations (Tables)

Insurance Operations (Tables)	9 Months Ended
	Sep. 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 September 30 Nine Months Ended September 30 ($ in thousands) 2019 2018 2019 2018 Written premiums Direct written premiums $ 226,209 $ 200,316 $ 715,500 $ 668,521 Assumed from other companies 987 980 2,566 4,750 Ceded to other companies 17,722 21,780 88,122 19,368 Net written premiums $ 209,474 $ 179,516 $ 629,944 $ 653,903 Earned premiums Direct earned premiums $ 229,816 $ 212,084 $ 683,906 $ 623,820 Assumed from other companies 920 1,603 2,794 8,767 Ceded to other companies 28,281 26,579 86,157 94,900 Net earned premiums $ 202,455 $ 187,108 $ 600,543 $ 537,687 Percent of amount assumed to net Losses and loss adjustment expenses incurred Direct net losses and loss adjustment expenses incurred $ 101,855 $ 109,524 $ 403,899 $ 364,977 Assumed from other companies 29,366 4,440 6,162 (2,238) Ceded to other companies 4,025 3,988 37,417 40,976 Net losses and loss adjustment expenses incurred $ 127,196 $ 109,976 $ 372,644 $ 321,763
Summary of effects of the termination of Quota Share Arrangements on pre-tax income	Three Months Ended September 30 ($ in thousands) 2019 2018 Ceded written premium $ 6 $ 55 Ceded earned premium — 56 (Increase) reduction to net loss and loss adjustment expenses incurred (1,632) 874 Reduction (increase) to policy acquisition expenses 1,632 (823) Reduction to pre-tax income $ - $ 5 Nine Months Ended September 30 ($ in thousands) 2019 2018 Ceded written premium (return of ceded prepaid) $ 3 $ (68,745) Ceded earned premium (3) 14,600 (Increase) reduction to net loss and loss adjustment expenses incurred (3,839) 9,422 Reduction to policy acquisition expenses 3,837 4,083 (Increase) reduction to pre-tax income $ (1) $ 1,095
Summary of unpaid losses	September 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 reserves 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 356,926 325,810 Prior years 2,367 (4,047) Prior years attributable to adjusted premium 13,351 — Total incurred losses and loss expenses 372,644 321,763 Less: Paid losses and loss expenses for claims occurring in the: Current year 39,742 34,359 Prior years 243,172 178,268 Total paid losses and loss expenses for claims 282,914 212,627 Net reserves for losses and loss expenses, at end of period 1,301,247 1,166,217 Ceded unpaid losses and loss expenses, at end of period 213,977 202,891 Gross unpaid losses and loss expenses, at end of period $ 1,515,224 $ 1,369,108

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Information
Summary of gross written premiums by customer segments	Three Months Ended September 30 Nine Months Ended September 30 ($ in thousands) 2019 2018 2019 2018 Customer Segment Construction $ 27,296 $ 22,451 $ 83,039 $ 71,979 Consumer Services 35,502 29,874 100,880 80,168 Marine and Energy 18,151 15,433 54,930 49,579 Media and Entertainment 36,788 31,590 113,630 109,821 Professional Services 27,015 24,750 85,681 82,254 Real Estate 41,566 19,477 116,915 91,507 Transportation 38,180 33,134 95,694 83,496 Customer Segment subtotal 224,498 176,709 650,769 568,804 Other 2,698 24,587 67,297 104,467 Specialty Insurance total $ 227,196 $ 201,296 $ 718,066 $ 673,271
Summary of gross written premiums by line of business across customer segments	Three Months Ended September 30 Nine Months Ended September 30 ($ in thousands) 2019 2018 2019 2018 Line of Business Commercial Auto $ 52,693 $ 41,701 $ 148,773 $ 114,403 General Liability 84,932 58,022 239,383 203,652 Workers’ Compensation 27,242 54,858 152,225 198,906 Commercial Multiple Peril 16,276 15,266 52,950 49,338 All Other Lines 46,053 31,449 124,735 106,972 Specialty Insurance total $ 227,196 $ 201,296 $ 718,066 $ 673,271

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Sep. 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 September 30, 2019 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income (loss) available to common stockholders $ 8,361 42,642 $ 0.20 $ (49) 42,642 $ (0.01) Effect of dilutive securities: Stock compensation plans 418 0.01 418 Diluted EPS $ 8,361 43,060 $ 0.19 $ (49) 43,060 $ — Continuing Operations Discontinued Operations (in thousands, except per share amounts) Income Shares Per Share Loss Shares Per Share Three Months Ended September 30, 2018 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income (loss) available to common stockholders $ 15,603 38,743 $ 0.40 $ (429) 38,743 $ (0.01) Effect of dilutive securities: Stock compensation plans 698 — 698 Diluted EPS $ 15,603 39,441 $ 0.40 $ (429) 39,441 $ (0.02) Continuing Operations Discontinued Operations (in thousands, except per share amounts) Income Shares Per Share Loss Shares Per Share Nine Months Ended September 30, 2019 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income (loss) available to common stockholders $ 30,752 40,120 $ 0.77 $ (382) 40,120 $ (0.01) Effect of dilutive securities: Stock compensation plans 541 0.01 541 Diluted EPS $ 30,752 40,661 $ 0.76 $ (382) 40,661 $ (0.01) Continuing Operations Discontinued Operations (in thousands, except per share amounts) Income Shares Per Share Income Shares Per Share Nine Months Ended September 30, 2018 (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic EPS: Net income available to common stockholders $ 40,265 38,743 $ 1.04 $ 158 38,743 $ — Effect of dilutive securities: Stock compensation plans 698 0.02 698 Diluted EPS $ 40,265 39,441 $ 1.02 $ 158 39,441 $ —

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Share-Based Compensation
Schedule of stock-based compensation expense	Three Months Ended September 30 Nine Months Ended September 30 ($ in thousands) 2019 2018 2019 2018 Stock-based compensation $ 6,785 $ 161 $ 6,862 $ 559
Schedule of restricted stock unit transactions	Number of Shares Weighted Average Grant Unvested outstanding at December 31, 2018 55,264 $ 11.09 Granted 1,725,429 $ 14.00 Vested 398,641 $ 13.60 Forfeited 92,657 $ 14.00 Unvested outstanding at September 30, 2019 1,289,395 $ 14.00

Basis of Reporting - Reorganiza

Basis of Reporting - Reorganization (Details) - shares	Jul. 25, 2019	Sep. 30, 2019	Jul. 24, 2019	Dec. 31, 2018
Basis of Reporting
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	200,000,000	200,000,000
Preferred stock, shares authorized		50,000,000	50,000,000	50,000,000

Basis of Reporting - Initial Pu

Basis of Reporting - Initial Public Offering (Details) - USD ($) $ / shares in Units, $ in Millions	Aug. 15, 2019	Jul. 29, 2019
GS Investors | Prosight Global, Inc.
Initial Public Offering
Ownership percentage	39.50%	40.90%
TPG Investors | Prosight Global, Inc.
Initial Public Offering
Ownership percentage	38.00%	39.40%
IPO
Initial Public Offering
Total shares sold		7,857,145
Number of shares issued		4,285,715
Price per share		$ 14
Net proceeds from the IPO		$ 51.6
IPO | Principal Stockholders
Initial Public Offering
Shares sold by principal shareholders in offering		3,571,430
Principal Stockholder Offering | Principal Stockholders
Initial Public Offering
Shares sold by principal shareholders in offering	1,178,570
Price per share	$ 14

Statements of Cash Flow (Detail

Statements of Cash Flow (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Supplemental cash flow information
Interest		$ 6,783	$ 6,159
Shares withheld to settle tax withholding on vested RSUs	8,388
Net shares issued upon settlement of vested RSUs	22,203

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Assets
Total assets		$ 20,098		$ 19,719
Liabilities
Total liabilities		26,936		22,256
Insurance Operations, U.K. | Discontinued operation
Net income (loss)
Net income (loss) from discontinued operations	$ (400)	(400)	$ 200
Assets
Total cash and investments		9,993		10,436
Other assets		10,105		9,283
Total assets		20,098		19,719
Liabilities
Unpaid losses and loss adjustment expenses		19,189		14,030
Other liabilities		7,747		8,226
Total liabilities		$ 26,936		$ 22,256

Investments - Gross Unrealized

Investments - Gross Unrealized Gains and Losses on AFS Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	$ 1,985,250	$ 1,729,755
Gross Unrealized Gains	48,666	13,675
Gross Unrealized Losses	(7,961)	(50,048)
Fair Value	2,025,955	1,693,382
U.S. Treasury securities
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	72,175	92,219
Gross Unrealized Gains	1,280	126
Gross Unrealized Losses	(104)	(2,017)
Fair Value	73,351	90,328
Government agency securities
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	4,840
Gross Unrealized Gains	6
Fair Value	4,846
Corporate debt securities
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	1,348,716	1,231,352
Gross Unrealized Gains	31,712	1,216
Gross Unrealized Losses	(4,646)	(40,138)
Fair Value	1,375,782	1,192,430
Municipal debt obligations
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	14,434	6,238
Gross Unrealized Gains	323
Gross Unrealized Losses	(1)	(153)
Fair Value	14,756	6,085
ABS
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	84,227	82,603
Gross Unrealized Gains	1,139	1,095
Gross Unrealized Losses	(150)	(117)
Fair Value	85,216	83,581
CLO
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	181,843	161,421
Gross Unrealized Gains	160	160
Gross Unrealized Losses	(2,259)	(4,668)
Fair Value	179,744	156,913
CMBS
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	67,986	55,980
Gross Unrealized Gains	2,416
Gross Unrealized Losses	(42)	(2,137)
Fair Value	70,360	53,843
RMBS - non-agency
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	63,803	68,594
Gross Unrealized Gains	10,690	11,078
Gross Unrealized Losses	(179)	(121)
Fair Value	74,314	79,551
RMBS - agency
Gross unrealized gains and losses on AFS securities included in assets
Cost/Amortized Cost	147,226	31,348
Gross Unrealized Gains	940
Gross Unrealized Losses	(580)	(697)
Fair Value	$ 147,586	$ 30,651

Investments - Unrealized Loss P

Investments - Unrealized Loss Position (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)security	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)security	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)security
Fair Value
Less Than 12 Months	$ 288,043		$ 288,043		$ 601,135
Greater Than 12 Months	236,218		236,218		850,337
Total Fair Value	524,261		524,261		1,451,472
Unrealized Losses
Less Than 12 Months	(2,882)		(2,882)		(15,578)
Greater Than 12 Months	(5,079)		(5,079)		(34,470)
Total Unrealized Losses	$ (7,961)		$ (7,961)		$ (50,048)
Fixed income securities, unrealized loss position | security	336		336		708
Other-than-temporary impairment (OTTI) charges	$ 0	$ 0	$ 0	$ 0
U.S. Treasury securities
Fair Value
Less Than 12 Months	9,666		9,666		$ 8,263
Greater Than 12 Months	19,521		19,521		69,727
Total Fair Value	29,187		29,187		77,990
Unrealized Losses
Less Than 12 Months	(12)		(12)		(82)
Greater Than 12 Months	(92)		(92)		(1,935)
Total Unrealized Losses	(104)		(104)		(2,017)
Corporate debt securities
Fair Value
Less Than 12 Months	116,619		116,619		393,931
Greater Than 12 Months	127,966		127,966		710,482
Total Fair Value	244,585		244,585		1,104,413
Unrealized Losses
Less Than 12 Months	(1,934)		(1,934)		(10,241)
Greater Than 12 Months	(2,712)		(2,712)		(29,897)
Total Unrealized Losses	(4,646)		(4,646)		(40,138)
Municipal debt obligations
Fair Value
Less Than 12 Months	6,163		6,163
Greater Than 12 Months					6,085
Total Fair Value	6,163		6,163		6,085
Unrealized Losses
Less Than 12 Months	(1)		(1)
Greater Than 12 Months					(153)
Total Unrealized Losses	(1)		(1)		(153)
ABS
Fair Value
Less Than 12 Months	21,344		21,344		25,258
Greater Than 12 Months	4,746		4,746		4,249
Total Fair Value	26,090		26,090		29,507
Unrealized Losses
Less Than 12 Months	(95)		(95)		(61)
Greater Than 12 Months	(55)		(55)		(56)
Total Unrealized Losses	(150)		(150)		(117)
CLO
Fair Value
Less Than 12 Months	72,748		72,748		146,004
Greater Than 12 Months	63,636		63,636
Total Fair Value	136,384		136,384		146,004
Unrealized Losses
Less Than 12 Months	(672)		(672)		(4,668)
Greater Than 12 Months	(1,587)		(1,587)
Total Unrealized Losses	(2,259)		(2,259)		(4,668)
CMBS
Fair Value
Less Than 12 Months	6,555		6,555
Greater Than 12 Months	6,081		6,081		53,843
Total Fair Value	12,636		12,636		53,843
Unrealized Losses
Less Than 12 Months	(9)		(9)
Greater Than 12 Months	(33)		(33)		(2,137)
Total Unrealized Losses	(42)		(42)		(2,137)
RMBS - non-agency
Fair Value
Less Than 12 Months	922		922		529
Greater Than 12 Months	2,532		2,532		2,449
Total Fair Value	3,454		3,454		2,978
Unrealized Losses
Less Than 12 Months	(2)		(2)		(13)
Greater Than 12 Months	(177)		(177)		(108)
Total Unrealized Losses	(179)		(179)		(121)
RMBS - agency
Fair Value
Less Than 12 Months	54,026		54,026		27,150
Greater Than 12 Months	11,736		11,736		3,502
Total Fair Value	65,762		65,762		30,652
Unrealized Losses
Less Than 12 Months	(157)		(157)		(513)
Greater Than 12 Months	(423)		(423)		(184)
Total Unrealized Losses	$ (580)		$ (580)		$ (697)

Investments - Amortized Cost an

Investments - Amortized Cost and Fair Value of Fixed Income Securities (Details) $ in Thousands	Sep. 30, 2019USD ($)
Amortized Cost
Due in one year or less	$ 97,372
Due after one through five years	722,887
Due after five through ten years	514,633
Due after ten years	105,273
Amortized Cost	1,440,165
Fair Value
Due in one year or less	97,585
Due after one through five years	733,382
Due after five through ten years	531,014
Due after ten years	106,754
Fair Value	1,468,735
Amortized Cost - Structured securities	1,985,250
Fair Value - Structured securities	2,025,955
ABS
Fair Value
Amortized Cost - Structured securities	84,227
Fair Value - Structured securities	85,216
CLO
Fair Value
Amortized Cost - Structured securities	181,843
Fair Value - Structured securities	179,744
CMBS
Fair Value
Amortized Cost - Structured securities	67,986
Fair Value - Structured securities	70,360
RMBS - non-agency
Fair Value
Amortized Cost - Structured securities	63,803
Fair Value - Structured securities	74,314
RMBS - agency
Fair Value
Amortized Cost - Structured securities	147,226
Fair Value - Structured securities	$ 147,586

Investments - Limited Partnersh

Investments - Limited Partnerships and Limited Liability Company Investments (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Investments
Investments in limited partnership and limited liability companies	$ 65,322	$ 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	$ 35,200

Investments - Gain Loss on Inve

Investments - Gain Loss on Investment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Investments
Allowance for loan losses	$ 0		$ 0		$ 0
Proceeds from sales and redemptions in AFS securities	71.5	$ 19.2	168.6	$ 139.3
Gross realized gains from sales and redemptions in AFS securities	$ 0.3	0.5	0.9	1.3
Gross realized losses from sales and redemptions of AFS investments		$ 0.1	$ 0.4	$ 0.5

Investments - Net Investment In

Investments - Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net investment income included in net income (loss)
Gross investment income	$ 17,541	$ 14,695	$ 53,144	$ 44,616
Less: expenses	567	651	1,614	1,315
Net investment income	16,974	14,044	51,530	43,301
Fixed income securities
Net investment income included in net income (loss)
Gross investment income	16,764	14,422	49,414	40,830
Commercial levered loans
Net investment income included in net income (loss)
Gross investment income	208	149	586	814
Net limited partnerships gains
Net investment income included in net income (loss)
Gross investment income	468	68	2,862	2,893
Other
Net investment income included in net income (loss)
Gross investment income	$ 101	$ 56	$ 282	$ 79

Investments - Other Details (De

Investments - Other Details (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Investments
Securities required to be held with various regulatory authorities as required by law	$ 209.1	$ 188.6
Fair value of assets on deposit in collateral agreements	364.6	358.5
Carrying value of assets on deposit in collateral agreements	$ 353	$ 368

Fair Value Measurements - Asset

Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2018	Sep. 30, 2019
Major categories of assets measured at fair value on a recurring basis
Investments in limited partnership and limited liability companies		$ 53,432	$ 65,322
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	2,025,955
Total assets at fair value		1,746,814	2,091,277
Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		1,566,885	1,896,369
Level 3 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		126,497	129,586
U.S. Treasury securities | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		90,328	73,351
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	73,351
Government agency securities | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities			4,846
Government agency securities | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities			4,846
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	1,375,782
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	1,246,196
Corporate debt securities | Level 3 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		126,497	129,586
Municipal debt obligations | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		6,085	14,756
Municipal debt obligations | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		6,085	14,756
ABS | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		83,581	85,216
ABS | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		83,581	85,216
CLO | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		156,913	179,744
CLO | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		156,913	179,744
CMBS | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		53,843	70,360
CMBS | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		53,843	70,360
RMBS - non-agency | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		79,551	74,314
RMBS - non-agency | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		79,551	74,314
RMBS - agency | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		30,651	147,586
RMBS - agency | Level 2 | Recurring
Major categories of assets measured at fair value on a recurring basis
Total fixed income securities		30,651	147,586
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	$ 65,322

Fair Value Measurements - Carry

Fair Value Measurements - Carrying and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Liabilities
Total notes payable	$ 164,609	$ 182,355
Fair value of the notes payable as a percentage of par value	101.70%	100.50%
Carrying Value
Assets
Commercial levered loans	$ 14,601	$ 16,915
Liabilities
Notes payable	165,000	183,000
Unamortized debt issuance costs	(391)	(645)
Total notes payable	164,609	182,355
Fair Value
Assets
Commercial levered loans	14,323	15,858
Liabilities
Notes payable	167,736	183,999
Level 2 | Fair Value
Liabilities
Notes payable	167,736	183,999
Level 3 | Fair Value
Assets
Commercial levered loans	$ 14,323	$ 15,858

Fair Value Measurements - Secur

Fair Value Measurements - Securities Measured Using Level 3 (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 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)	1,514
Net realized loss	(4)
Purchases	4,372
Settlements	(2,793)
Transfers into Level 3			$ 126,500
Fair value at end of period	$ 129,586		$ 126,497
Corporate debt securities
Changes in fair value of securities measured using Level 3 inputs
Other comprehensive income (loss)		$ (362)
Net realized loss		(9)
Purchases		7,228
Settlements		(1,333)
Transfers into Level 3		119,004
Fair value at end of period		$ 124,528

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) - Components of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of period, gross	$ 34,898	$ (18,740)	$ (29,760)	$ 22,265
Unrealized holding gains (losses) on fixed income securities, gross	11,943	(193)	76,576	(40,224)
Amounts reclassified into net loss, gross	4,362	307	4,337	1,281
Other comprehensive income, gross	7,581	(500)	72,239	(41,505)
Balance at the end of period, gross	42,479	(19,240)	42,479	(19,240)
Balance at the beginning of period, tax	6,054	(5,348)	(7,445)	2,968
Unrealized holding gains (losses) on fixed income securities, tax	2,651	335	16,098	(8,090)
Amounts reclassified into net loss, tax	156	278	104	169
Other comprehensive income, tax	2,495	57	15,994	(8,259)
Balance at the end of period, tax	8,549	(5,291)	8,549	(5,291)
Balance at the beginning of period, net	28,844	(13,392)	(22,315)	19,297
Unrealized holding gains (losses) on fixed income securities	9,292	(528)	60,478	(32,134)
Amounts reclassified into net income	4,206	29	4,233	1,112
Other comprehensive income (loss)	5,086	(557)	56,245	(33,246)
Balance at the end of period, net	$ 33,930	$ (13,949)	$ 33,930	$ (13,949)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Unrealized gains on securities, tax	$ 156	$ 278	$ 104	$ 169
Total reclassifications	4,206	29	4,233	1,112
Realized Investment Gains (Losses)
Unrealized gains on securities	4,362	307	4,337	1,281
Income Tax Benefit
Unrealized gains on securities, tax	$ 156	$ 278	$ 104	$ 169

Related-Party Information (Deta

Related-Party Information (Details) - USD ($) $ in Thousands	May 03, 2019	Mar. 15, 2019	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Related party transactions
Equity distribution for executive loan repayment				$ 4,174
Executives
Related party transactions
Loans payable						$ 4,200
Repayment of loans		$ 4,200
Former CEO
Related party transactions
Common shares cancelled as per terms of the separation agreement	137,987
Other Expense | Former CEO
Related party transactions
Severance expense			$ 400		$ 7,600
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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Written premiums
Direct written premiums	$ 226,209	$ 200,316	$ 715,500	$ 668,521
Assumed from other companies	987	980	2,566	4,750
Ceded to other companies	17,722	21,780	88,122	19,368
Net written premiums	209,474	179,516	629,944	653,903
Earned premiums
Direct earned premiums	229,816	212,084	683,906	623,820
Assumed from other companies	920	1,603	2,794	8,767
Ceded to other companies	28,281	26,579	86,157	94,900
Net premiums earned	$ 202,455	$ 187,108	$ 600,543	$ 537,687
Percent of amount assumed to net	0.50%	0.90%	0.50%	1.60%
Losses and loss adjustment expenses incurred
Direct net losses and loss adjustment expenses incurred	$ 101,855	$ 109,524	$ 403,899	$ 364,977
Assumed from other companies	29,366	4,440	6,162	(2,238)
Ceded to other companies	4,025	3,988	37,417	40,976
Net losses and loss adjustment expenses incurred	$ 127,196	$ 109,976	$ 372,644	$ 321,763

Insurance Operations - Quota Sh

Insurance Operations - Quota Share Arrangements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Insurance activity
Ceded earned premium	$ 28,281	$ 26,579	$ 86,157	$ 94,900
Increase/reduction to pre-tax income	(10,376)	(19,412)	(39,005)	(50,355)
Whole Account Quota Share Reinsurance Agreement
Insurance activity
Ceded written premium (return of ceded prepaid)	6	55	3	(68,745)
Ceded earned premium		56		14,600
Ceded earned premium			(3)
(Increase) reduction to net loss and loss adjustment expenses incurred	(1,632)	874	(3,839)	9,422
Reduction (increase) to policy acquisition expenses	$ 1,632	(823)	3,837	4,083
Increase/reduction to pre-tax income		$ 5	$ (1)	$ 1,095

Insurance Operations - Gross Wr

Insurance Operations - Gross Written Premiums (Details) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019USD ($)item	Sep. 30, 2018USD ($)item	Sep. 30, 2019USD ($)item	Sep. 30, 2018USD ($)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 | $	$ 75.4	$ 52	$ 208.4	$ 183.9

Insurance Operations - Unpaid L

Insurance Operations - Unpaid Losses (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 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	356,926	325,810
Prior years	2,367	(4,047)
Prior years attributable to adjusted premium	13,351
Total incurred losses and loss expenses	372,644	321,763
Paid losses and loss expenses for claims occurring in the:
Current year	39,742	34,359
Prior years	243,172	178,268
Total paid losses and loss expenses for claims	282,914	212,627
Net reserves for losses and loss expenses, at end of period	1,301,247	1,166,217
Ceded unpaid losses and loss expenses, at end of period	213,977	202,891
Gross unpaid losses and loss expenses, at end of period	1,515,224	1,369,108
Commercial Auto
Incurred losses and loss expenses occurring in the:
Prior years		(11,700)
General Liability
Incurred losses and loss expenses occurring in the:
Prior years	23,200	12,400
Workers' Compensation
Incurred losses and loss expenses occurring in the:
Prior years	(18,700)	(10,800)
Surety Line
Incurred losses and loss expenses occurring in the:
Prior years	$ (2,700)
Commercial Multiple Peril
Incurred losses and loss expenses occurring in the:
Prior years		9,200
Marine Liability
Incurred losses and loss expenses occurring in the:
Prior years		$ (3,100)

Income Taxes (Details)

Income Taxes (Details) - subsidiary	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Number of foreign subsidiaries			1
Effective income tax rate	19.40%	19.60%	21.20%	20.00%
PSGH | Bermuda
Statutory income tax rate			0.00%	0.00%

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Aug. 08, 2019	Mar. 15, 2019	Sep. 30, 2019	Mar. 14, 2019
Line of Credit Facility [Line Items]
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		$ 50,000		$ 25,000
Repayment of outstanding debt			$ 18,000
Revolving facility
Line of Credit Facility [Line Items]
Repayment of outstanding debt	$ 18,000
Available borrowing capacity			$ 50,000

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 227,196	$ 201,296	$ 718,066	$ 673,271
Commercial Auto
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 52,693	$ 41,701	$ 148,773	$ 114,403
Gross written premiums, percent	23.20%	20.70%	20.70%	17.00%
General Liability
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 84,932	$ 58,022	$ 239,383	$ 203,652
Gross written premiums, percent	37.40%	28.90%	33.40%	30.30%
Workers' Compensation
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 27,242	$ 54,858	$ 152,225	$ 198,906
Gross written premiums, percent	12.00%	27.30%	21.10%	29.50%
Commercial Multiple Peril
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 16,276	$ 15,266	$ 52,950	$ 49,338
Gross written premiums, percent	7.10%	7.50%	7.40%	7.30%
All Other Lines
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 46,053	$ 31,449	$ 124,735	$ 106,972
Gross written premiums, percent	20.30%	15.60%	17.40%	15.90%
Customer Segment
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 224,498	$ 176,709	$ 650,769	$ 568,804
Gross written premiums, percent	98.80%	87.80%	90.60%	84.50%
Construction
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 27,296	$ 22,451	$ 83,039	$ 71,979
Gross written premiums, percent	12.00%	11.10%	11.60%	10.70%
Consumer Services
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 35,502	$ 29,874	$ 100,880	$ 80,168
Gross written premiums, percent	15.60%	14.80%	14.00%	11.90%
Marine and Energy
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 18,151	$ 15,433	$ 54,930	$ 49,579
Gross written premiums, percent	8.00%	7.70%	7.70%	7.40%
Media and Entertainment
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 36,788	$ 31,590	$ 113,630	$ 109,821
Gross written premiums, percent	16.20%	15.70%	15.80%	16.30%
Professional Services
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 27,015	$ 24,750	$ 85,681	$ 82,254
Gross written premiums, percent	11.90%	12.30%	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	$ 41,566	$ 19,477	$ 116,915	$ 91,507
Gross written premiums, percent	18.30%	9.70%	16.30%	13.60%
Transportation
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 38,180	$ 33,134	$ 95,694	$ 83,496
Gross written premiums, percent	16.80%	16.50%	13.30%	12.40%
Other
Summary of the Company’s gross written premium by customer segments within our Specialty Insurance segment
Gross written premiums	$ 2,698	$ 24,587	$ 67,297	$ 104,467
Gross written premiums, percent	1.20%	12.20%	9.40%	15.50%

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Basic EPS- Income:
Net income (loss) available to common stockholders, continuing operations	$ 8,361	$ 15,603	$ 30,752	$ 40,265
Net income (loss) available to common stockholders, discontinued operations	$ (49)	$ (429)	$ (382)	$ 158
Basic EPS - Shares:
Shares outstanding, basic (in shares)	42,642	38,743	40,120	38,743
Basic EPS - Per Share Amount:
Net Income available to common stockholders, continuing operations (in dollars per share)	$ 0.20	$ 0.40	$ 0.77	$ 1.04
Net Income available to common stockholders, discontinued operations (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.01)
Effect of dilutive securities - Shares:
Stock compensation plans (in shares)	418	698	541	698
Effect of dilutive securities - Per Share Amount:
Stock compensation plans, continuing operations (in dollars per share)	$ 0.01		$ 0.01	$ 0.02
Diluted EPS - Income
Diluted EPS, Diluted net income - continuing operations	$ 8,361	$ 15,603	$ 30,752	$ 40,265
Diluted EPS, Diluted net income - discontinued operations	$ (49)	$ (429)	$ (382)	$ 158
Diluted EPS - Shares
Shares outstanding, diluted (in shares)	43,060	39,441	40,661	39,441
Diluted EPS - Per Share Amount
Diluted EPS, continuing operations (in dollars per share)	$ 0.19	$ 0.40	$ 0.76	$ 1.02
Diluted EPS, discontinued operations (in dollars per share)		$ (0.02)	$ (0.01)

Share-Based Compensation - 2019

Share-Based Compensation - 2019 Equity Incentive Plan (Details) - USD ($) $ in Thousands	Jul. 25, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jul. 24, 2019
Share-based Compensation
Share-based compensation expense		$ 6,785	$ 161	$ 6,862	$ 559
Restricted stock units
Share-based Compensation
Restricted stock unit awards granted				1,725,429
2019 Equity Incentive Plan
Share-based Compensation
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)
Share-based Compensation
Restricted stock unit awards granted	181,118
Grant date fair value	$ 2,500
2019 Equity Incentive Plan | LTIP Time Vesting RSUs
Share-based Compensation
Restricted stock unit awards granted	90,559
2019 Equity Incentive Plan | LTIP Time Vesting RSUs | At One Year
Share-based Compensation
Vesting percentage	33.33%
2019 Equity Incentive Plan | LTIP Time Vesting RSUs | At Two Years
Share-based Compensation
Vesting percentage	33.33%
2019 Equity Incentive Plan | LTIP Time Vesting RSUs | At Three Years
Share-based Compensation
Vesting percentage	33.33%
2019 Equity Incentive Plan | LTIP Performance Vesting RSUs
Share-based Compensation
Restricted stock unit awards granted	90,559
Cliff vesting period	3 years
2019 Equity Incentive Plan | Supplemental RSUs
Share-based Compensation
Restricted stock unit awards granted	1,267,912
Percentage of time-vesting awards	100.00%
Grant date fair value	$ 17,800
2019 Equity Incentive Plan | Supplemental RSUs | At Grant Date
Share-based Compensation
Vesting percentage	25.00%
2019 Equity Incentive Plan | Supplemental RSUs | At Two Years
Share-based Compensation
Vesting percentage	25.00%
2019 Equity Incentive Plan | Supplemental RSUs | At Three Years
Share-based Compensation
Vesting percentage	50.00%
2019 Equity Incentive Plan | Founders Grant RSUs
Share-based Compensation
Restricted stock unit awards granted	250,000
Grant date fair value	$ 3,500
Cliff vesting period	3 years
2019 Equity Incentive Plan | Director RSUs
Share-based Compensation
Restricted stock unit awards granted	26,399
Grant date fair value	$ 400
2010 Equity Incentive Plan | Restricted stock units
Share-based Compensation
Number of RSUs converted into RSUs based on common stock upon merger	668,170

Share-Based Compensation - 20_2

Share-Based Compensation - 2019 Plan Restricted Stock Activity (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Unrecognized Share-based Compensation
Unrecognized stock-based compensation expense | $	$ 16.1
Expected weighted average recognition period	2 years 7 months 6 days
Restricted stock units
Restricted Stock Units
Unvested outstanding at beginning of period | shares	55,264
Granted | shares	1,725,429
Vested | shares	398,641
Forfeited | shares	92,657
Unvested outstanding at end of period | shares	1,289,395
Weighted Average Grant Date Fair Value
Non vested outstanding at beginning of period | $ / shares	$ 11.09
Granted | $ / shares	14
Vested | $ / shares	13.60
Forfeited | $ / shares	14
Non vested outstanding at end of period | $ / shares	$ 14

Share-Based Compensation - 20_3

Share-Based Compensation - 2019 Employee Stock Purchase Plan (Details) - 2019 Employee Stock Purchase Plan - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Jul. 24, 2019
Employee stock purchase plan
Expense recognized related to plan	$ 0
ESPP
Employee stock purchase plan
Number of common shares reserved for sale		1,000,000