Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

14. GOODWILL AND INTANGIBLE ASSETS

The following table presents a reconciliation of the beginning and ending goodwill and intangible assets for the years ended December 31, 2019 and 2018:



			Intangible assets
	Goodwill		Intangible assets with a definite life			Intangible assets with an indefinite life		Total			Total
Balance as of December 31, 2017	$	73,071	$	20,487		$	87,031	$	107,518		$	180,589
Acquired during the year	41,736		—			—		—			41,736
Amortization	—		(3,600		)	—		(3,600		)	(3,600		)
Balance as of December 31, 2018	$	114,807	$	16,887		$	87,031	$	103,918		$	218,725
Amortization	—		(2,257		)	—		(2,257		)	(2,257		)
Balance as of December 31, 2019	$	114,807	$	14,630		$	87,031	$	101,661		$	216,468

Goodwill

Goodwill as of December 31, 2019 and 2018, related to our Non-life Run-off, Atrium and StarStone segments, was as follows:



	2019		2018
Non-life Run-Off	$	62,959	$	62,959
Atrium	38,848		38,848
StarStone	13,000		13,000
	$	114,807	$	114,807

For the year ended December 31, 2019, we completed our assessment for impairment of goodwill and concluded that there had been no impairment of our carried goodwill amount. For the year ended December 31, 2018 the increase in the goodwill balance in the Non-life Run-off segment was due to the acquisition of KaylaRe as discussed in Note 3 - "Acquisitions", which resulted in the recognition of goodwill of $41.7 million, none of which is amortizable for tax purposes.

Intangible Assets

Intangible assets with a definite life includes the distribution channel, technology and brand related to our acquisitions of Atrium and StarStone. These assets are amortized on a straight-line basis over a period ranging from four to fifteen years. The following table provides a summary of the amortization recorded on the intangible assets for the years ended December 31, 2019, 2018 and 2017:



	2019		2018		2017
Intangible asset amortization	$	2,257	$	3,600	$	4,266

Intangible assets with an indefinite life includes assets associated with the Lloyd’s syndicate capacity for StarStone and Atrium, StarStone's U.S. insurance licenses, and Atrium’s management contract with Syndicate 609 in relation to underwriting, actuarial and support services it provides.

The gross carrying value, accumulated amortization and net carrying value of intangible assets by type as of December 31, 2019 and 2018 was as follows:



	2019							2018
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Intangible assets with a definite life:
Distribution channel	$	20,000	$	(8,111	)	$	11,889	$	20,000	$	(6,776	)	$	13,224
Technology	15,000		(15,000		)	—		15,000		(14,778		)	222
Brand	7,000		(4,259		)	2,741		7,000		(3,559		)	3,441
Total	$	42,000	$	(27,370	)	$	14,630	$	42,000	$	(25,113	)	$	16,887
Intangible assets with an indefinite life:
Lloyd’s syndicate capacity	$	37,031	$	—		$	37,031	$	37,031	$	—		$	37,031
Licenses	19,900		—			19,900		19,900		—			19,900
Management contract	30,100		—			30,100		30,100		—			30,100
Total	$	87,031	$	—		$	87,031	$	87,031	$	—		$	87,031

The net carrying value of intangible assets by segment and by type as of December 31, 2019 and 2018 was as follows:



	2019						2018
	Atrium		StarStone		Total		Atrium		StarStone		Total
Intangible assets with a definite life:
Distribution channel	$	11,889	$	—	$	11,889	$	13,224	$	—	$	13,224
Technology	—		—		—		—		222		222
Brand	2,741		—		2,741		3,441		—		3,441
Total	$	14,630	$	—	$	14,630	$	16,665	$	222	$	16,887
Intangible assets with an indefinite life:
Lloyd’s syndicate capacity	$	33,031	$	4,000	$	37,031	$	33,031	$	4,000	$	37,031
Licenses	—		19,900		19,900		—		19,900		19,900
Management contract	30,100		—		30,100		30,100		—		30,100
Total	$	63,131	$	23,900	$	87,031	$	63,131	$	23,900	$	87,031

Total intangible assets	$	77,761	$	23,900	$	101,661	$	79,796	$	24,122	$	103,918

The estimated future amortization expense related to our intangible assets with a definite life is as follows:



Year	Atrium		StarStone		Total
2020	$	2,033	$	—	$	2,033
2021	2,033		—		2,033
2022	2,033		—		2,033
2023	1,975		—		1,975
2024	1,333		—		1,333
2025 and thereafter	5,223		—		5,223
Total amortization	$	14,630	$	—	$	14,630