Goodwill And Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

The following table presents the components of goodwill by reportable segment.



(dollars in thousands)	U.S. Insurance		International Insurance			Reinsurance		Other⁽¹⁾			Total
January 1, 2014	$	280,579	$	372,764		$	122,745	$	191,629		$	967,717
Acquisitions (see note 2)	—		42,989			—		61,539			104,528
Impairment loss	—		—			—		(13,737		)	(13,737		)
Foreign currency movements and other adjustments	—		(7,570		)	—		(1,823		)	(9,393		)
December 31, 2014 ⁽²⁾	$	280,579	$	408,183		$	122,745	$	237,608		$	1,049,115
Acquisitions (see note 2)	—		—			—		146,659			146,659
Impairment loss	—		—			—		(14,880		)	(14,880		)
Foreign currency movements and other adjustments	—		(10,190		)	—		(2,860		)	(13,050		)
December 31, 2015 ⁽²⁾	$	280,579	$	397,993		$	122,745	$	366,527		$	1,167,844


⁽¹⁾	Amounts included in Other above are related to the Company's non-insurance operations, which are not included in a reportable segment.


⁽²⁾	Goodwill is net of accumulated impairment losses of $28.6 million and $13.7 million, as of December 31, 2015 and 2014, respectively, included in Other.

Goodwill and indefinite-lived intangible assets are tested for impairment at least annually. The Company completes an annual test during the fourth quarter of each year based upon the results of operations through September 30. As part of our annual impairment test, during the fourth quarters of 2015 and 2014, the Company recorded a goodwill impairment charge of $14.9 million and $13.7 million, respectively, to other expenses, to reduce the carrying value of the Diamond Healthcare reporting unit's goodwill to its implied fair value. Diamond Healthcare's operations consist of the planning, development and operation of behavioral health services in partnership with healthcare organizations, and are reported in our non-insurance operations. In both periods, the Company determined the goodwill for the reporting unit was impaired as a result of lower than expected earnings and lower estimated future earnings. To determine the value of the impairment loss, the Company estimated the fair value of the reporting unit primarily using an income approach based on a discounted cash flow model. Following the impairment charge in 2015, the carrying value of the Diamond Healthcare goodwill is zero.

There were no impairment losses recognized during 2013.

The following table presents the components of intangible assets with a net carrying amount.



	December 31,
	2015					2014
(dollars in thousands)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Customer relationships	$	481,547	$	(97,892	)	$	452,157	$	(69,483	)
Broker relationships	182,626		(45,135		)	175,681		(34,827		)
Trade names	103,681		(23,821		)	94,795		(17,673		)
Investment management agreements	98,000		—			—		—
Technology	54,241		(22,288		)	62,288		(22,671		)
Insurance licenses	30,185		—			39,985		—
Lloyd's syndicate capacity	12,000		—			12,000		—
Other	30,496		(11,268		)	18,903		(8,408		)
Total	$	992,776	$	(200,404	)	$	855,809	$	(153,062	)

Amortization of intangible assets was $68.9 million, $57.6 million and $55.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. Amortization of intangible assets is estimated to be $69.7 million for 2016, $67.6 million for 2017, $65.8 million for 2018, $56.6 million for 2019 and $51.5 million for 2020. Indefinite-lived intangible assets were $48.2 million at December 31, 2015 and $58.0 million at December 31, 2014.

In 2015, the Company acquired $166.9 million of intangible assets. The definite-lived intangible assets acquired are expected to be amortized over a weighted average period of 14 years. The definite-lived intangible assets acquired during 2015 primarily include customer relationships and investment management agreements, which are expected to be amortized over a weighted average period of 17 and 14 years, respectively

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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