Goodwill and intangible assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets

The following tables present a reconciliation of the beginning and ending goodwill and intangible assets for the years ended December 31, 2017 and 2016:



	Year Ended December 31, 2017
	Goodwill						Intangible Assets
	Reinsurance Segment		Insurance Segment		Total		Reinsurance Segment			Insurance Segment			Total
Balance, beginning of year	$	2,039	$	194,719	$	196,758	$	9,392		$	106,200		$	115,592
Additions	—		30,943		30,943		—			64,080			64,080
Amortization	—		—		—		(208		)	(8,053		)	(8,261		)
Measurement period adjustments ^(a)	—		1,872		1,872		—			—			—
Balance, end of year	$	2,039	$	227,534	$	229,573	$	9,184		$	162,227		$	171,411


(a)	During the year ended December 31, 2017, the Company recorded tax related measurement period adjustments of $1,872.



	Year Ended December 31, 2016
	Goodwill						Intangible Assets
	Reinsurance Segment		Insurance Segment		Total		Reinsurance Segment			Insurance Segment			Total
Balance, beginning of year	$	2,039	$	194,719	$	196,758	$	9,808		$	111,450		$	121,258
Amortization	—		—		—		(416		)	(5,250		)	(5,666		)
Balance, end of year	$	2,039	$	194,719	$	196,758	$	9,392		$	106,200		$	115,592



	Year Ended December 31, 2017								Year Ended December 31, 2016
	Intangible Assets								Intangible Assets
	With a Finite Life			With an Indefinite Life		Total			With a Finite Life			With an Indefinite Life		Total
Balance, beginning of year	$	11,424		$	104,168	$	115,592		$	17,090		$	104,168	$	121,258
Additions	64,080			—		64,080			—			—		—
Amortization	(8,261		)	—		(8,261		)	(5,666		)	—		(5,666		)
Balance, end of year	$	67,243		$	104,168	$	171,411		$	11,424		$	104,168	$	115,592

Goodwill relates to the Company’s 2007 acquisition of Talbot, 2014 acquisition of Western World and 2017 acquisition of CRS.

Intangible assets with a finite life includes the distribution network, technology, trade name and customer relationships related to the Company’s acquisitions of Talbot, Western World and CRS. These assets are amortized on a straight-line basis over a period ranging from two to ten years. Amortization expense associated with these assets for the years ended December 31, 2017, 2016 and 2015 was $8,261, $5,666 and $5,666, respectively.

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

The Company completed its qualitative and quantitative assessments of goodwill and other intangible assets and concluded that there had been no impairment as at December 31, 2017 and 2016.

The gross carrying values, accumulated amortization and net carrying values of other intangible assets by type as at December 31, 2017 and 2016 were as follows:



	December 31, 2017							December 31, 2016
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Intangible assets with a finite life
Trade name and customer relationships	$	27,757	$	(14,940	)	$	12,817	$	18,189	$	(13,406	)	$	4,783
Distribution network	92,729		(40,218		)	52,511		39,831		(34,468		)	5,363
Technology	3,937		(2,022		)	1,915		2,323		(1,045		)	1,278
Total	$	124,423	$	(57,180	)	$	67,243	$	60,343	$	(48,919	)	$	11,424

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 aggregate amortization expense for the Company’s intangible assets with a finite life is as follows:



	Estimated Aggregate Amortization Expense, by Period
2018	$	8,511
2019	7,910
2020	7,319
2021	7,319
2022	7,306
2023 and thereafter	28,878
	$	67,243

- 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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