Goodwill and other intangible assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents a reconciliation of the beginning and ending goodwill and other intangible assets for the years ended December 31, 2016 and 2015:



	Year Ended December 31, 2016
	Goodwill						Other Intangible Assets
	Talbot		Western World		Total		With a Finite Life			With an Indefinite Life		Total
Balance, beginning of year	$	20,393	$	176,365	$	196,758	$	17,090		$	104,168	$	121,258
Amortization	—		—		—		(5,666		)	—		(5,666		)
Balance, end of year	$	20,393	$	176,365	$	196,758	$	11,424		$	104,168	$	115,592

	Year Ended December 31, 2015
	Goodwill						Other Intangible Assets
	Talbot		Western World		Total		With a Finite Life			With an Indefinite Life		Total
Balance, beginning of year	$	20,393	$	175,504	$	195,897	$	22,756		$	104,168	$	126,924
Amortization	—		—		—		(5,666		)	—		(5,666		)
Measurement period adjustments	—		861		861		—			—		—
Balance, end of year	$	20,393	$	176,365	$	196,758	$	17,090		$	104,168	$	121,258

Goodwill relates to the Company’s 2007 acquisition of Talbot and 2014 acquisition of Western World. As at December 31, 2016 and 2015, the total amount of carried goodwill was $196,758. During the year ended December 31, 2015, measurement period adjustments of $861 were made to certain other assets, net of taxes, for Western World.

Other intangible assets with a finite life includes the distribution network, technology, trade name and customer relationships related to the Company’s acquisitions of Talbot and Western World. These assets are amortized on a straight-line basis over a period ranging from 5 to 10 years. Amortization expense associated with these assets for the years ended December 31, 2016, 2015 and 2014 was $5,666, $5,666 and $4,538, respectively.

Other intangible assets with an indefinite life consist of U.S. state licenses that provide a legal right to transact business indefinitely which were acquired with the Company’s acquisition of Western World, along with Lloyd’s Syndicate capacity related to the Company’s acquisition of Talbot.

The Company completed its qualitative assessments for impairment of both goodwill and other intangible assets and concluded that there had been no impairment as at December 31, 2016 and 2015.

The gross carrying value, accumulated amortization and net carrying value of other intangible assets by type as at December 31, 2016 and 2015 were as follows:



	December 31, 2016							December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other intangible assets with a finite life
Trade name and customer relationships	$	18,189	$	(13,406	)	$	4,783	$	18,189	$	(12,187	)	$	6,002
Distribution network	39,831		(34,468		)	5,363		39,831		(30,485		)	9,346
Technology	2,323		(1,045		)	1,278		2,323		(581		)	1,742
Total	$	60,343	$	(48,919	)	$	11,424	$	60,343	$	(43,253	)	$	17,090

Other intangible assets with an indefinite life
Syndicate capacity	$	91,843	n/a			$	91,843	$	91,843	n/a			$	91,843
State licenses	12,325		n/a			12,325		12,325		n/a			12,325
Total	$	104,168				$	104,168	$	104,168				$	104,168

The estimated remaining amortization expense for the Company’s other intangible assets with a finite life is as follows:



	Total Remaining Amortization Expense
2017	$	3,585
2018	1,505
2019	1,389
2020	1,041
2021	1,041
2022 and thereafter	2,863
	$	11,424

- 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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