(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||||||
(Address of principal executive offices and zip code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page No. | ||||||||
Employers Holdings, Inc. and Subsidiaries | ||||||||||||||
Consolidated Balance Sheets | ||||||||||||||
(in millions, except share data) | ||||||||||||||
As of | As of | |||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||
Assets | (unaudited) | |||||||||||||
Investments: | ||||||||||||||
Fixed maturity securities at fair value (amortized cost $ | $ | $ | ||||||||||||
Equity securities at fair value (cost $ | ||||||||||||||
Equity securities at cost | ||||||||||||||
Other invested assets (cost $ | ||||||||||||||
Short-term investments at fair value (amortized cost $ | ||||||||||||||
Total investments | ||||||||||||||
Cash and cash equivalents | ||||||||||||||
Restricted cash and cash equivalents | ||||||||||||||
Accrued investment income | ||||||||||||||
Premiums receivable (less CECL allowance of $ | ||||||||||||||
Reinsurance recoverable for: | ||||||||||||||
Paid losses | ||||||||||||||
Unpaid losses (less CECL allowance of $ | ||||||||||||||
Deferred policy acquisition costs | ||||||||||||||
Deferred income tax asset, net | ||||||||||||||
Property and equipment, net | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Intangible assets, net | ||||||||||||||
Goodwill | ||||||||||||||
Contingent commission receivable—LPT Agreement | ||||||||||||||
Cloud computing arrangements | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||
Claims and policy liabilities: | ||||||||||||||
Unpaid losses and loss adjustment expenses | $ | $ | ||||||||||||
Unearned premiums | ||||||||||||||
Commissions and premium taxes payable | ||||||||||||||
Accounts payable and accrued expenses | ||||||||||||||
Deferred reinsurance gain—LPT Agreement | ||||||||||||||
FHLB advances | ||||||||||||||
Operating lease liability | ||||||||||||||
Non-cancellable obligations | ||||||||||||||
Other liabilities | ||||||||||||||
Total liabilities | $ | $ | ||||||||||||
Commitments and contingencies |
Employers Holdings, Inc. and Subsidiaries | ||||||||||||||
Consolidated Balance Sheets | ||||||||||||||
(in millions, except share data) | ||||||||||||||
As of | As of | |||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||
Stockholders’ equity: | (unaudited) | |||||||||||||
Common stock, $0.01 par value; 150,000,000 shares authorized; | $ | $ | ||||||||||||
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive loss, net of tax | ( | ( | ||||||||||||
Treasury stock, at cost ( | ( | ( | ||||||||||||
Total stockholders’ equity | ||||||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Employers Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||||
Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Revenues | (unaudited) | (unaudited) | ||||||||||||||||||||||||
Net premiums earned | $ | $ | $ | $ | ||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||
Net realized and unrealized (losses) gains on investments | ( | ( | ||||||||||||||||||||||||
Other income (loss) | ( | |||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||
Losses and loss adjustment expenses | ||||||||||||||||||||||||||
Commission expense | ||||||||||||||||||||||||||
Underwriting and general and administrative expenses | ||||||||||||||||||||||||||
Interest and financing expenses | ||||||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||
Total expenses | ||||||||||||||||||||||||||
Net income (loss) before income taxes | ( | |||||||||||||||||||||||||
Income tax expense (benefit) | ( | |||||||||||||||||||||||||
Net Income | $ | $ | $ | $ | ||||||||||||||||||||||
Comprehensive (loss) income | ||||||||||||||||||||||||||
Unrealized AFS investment losses arising during the period, net of tax benefit of $ | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Reclassification adjustment for realized AFS investment losses (gains) in net income, net of tax (benefit) expense of $( | ( | |||||||||||||||||||||||||
Other comprehensive loss, net of tax | ( | ( | ( | ( | ||||||||||||||||||||||
Total Comprehensive (loss) income | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
Earnings per common share (Note 13): | ||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted | $ | $ | $ | $ | ||||||||||||||||||||||
Cash dividends declared per common share and eligible plan awards | $ | $ | $ | $ |
Employers Holdings, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||
Consolidated Statements of Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2023 and 2022 | |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net | Treasury Stock at Cost | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||
Shares Issued | Amount | ||||||||||||||||||||||||||||||||||||||||
(in millions, except share data) | |||||||||||||||||||||||||||||||||||||||||
Balance, July 1, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Stock-based obligations | |||||||||||||||||||||||||||||||||||||||||
Vesting of RSUs and PSUs, net of shares withheld to satisfy tax withholdings | ( | ( | |||||||||||||||||||||||||||||||||||||||
Acquisition of common stock(1) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Dividends declared | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income for the period | — | ||||||||||||||||||||||||||||||||||||||||
Change in net unrealized losses on AFS investments, net of taxes of $ | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Balance, July 1, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Stock-based obligations | |||||||||||||||||||||||||||||||||||||||||
Acquisition of common stock | ( | ( | |||||||||||||||||||||||||||||||||||||||
Dividends declared | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income for the period | — | ||||||||||||||||||||||||||||||||||||||||
Change in net unrealized losses on AFS investments, net of taxes of $ | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
(1) Beginning January 1, 2023, amount includes applicable excise tax as imposed by the Inflation Reduction Act of 2022. | |||||||||||||||||||||||||||||||||||||||||
See accompanying unaudited notes to the consolidated financial statements. |
Employers Holdings, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||
Consolidated Statements of Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2023 and 2022 | |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net | Treasury Stock at Cost | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||
Shares Issued | Amount | ||||||||||||||||||||||||||||||||||||||||
(in millions, except share data) | |||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Stock-based obligations | |||||||||||||||||||||||||||||||||||||||||
Stock options exercised | |||||||||||||||||||||||||||||||||||||||||
Vesting of RSUs and PSUs, net of shares withheld to satisfy tax withholdings | ( | ( | |||||||||||||||||||||||||||||||||||||||
Acquisition of common stock(1) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Dividends declared | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income for the period | — | ||||||||||||||||||||||||||||||||||||||||
Change in net unrealized losses on AFS investments, net of taxes of $ | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||
Stock-based obligations | |||||||||||||||||||||||||||||||||||||||||
Stock options exercised | |||||||||||||||||||||||||||||||||||||||||
Vesting of RSUs and PSUs, net of shares withheld to satisfy tax withholdings | ( | ( | |||||||||||||||||||||||||||||||||||||||
Acquisition of common stock | ( | ( | |||||||||||||||||||||||||||||||||||||||
Dividends declared | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income for the period | — | ||||||||||||||||||||||||||||||||||||||||
Change in net unrealized losses on AFS investments, net of taxes of $ | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
(1) Beginning January 1, 2023, amount includes applicable excise tax as imposed by the Inflation Reduction Act of 2022. | |||||||||||||||||||||||||||||||||||||||||
See accompanying unaudited notes to the consolidated financial statements. |
Employers Holdings, Inc. and Subsidiaries | ||||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||||
(in millions) | ||||||||||||||
Nine Months Ended | ||||||||||||||
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Operating activities | (unaudited) | |||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Stock-based compensation | ||||||||||||||
Amortization of cloud computing arrangements | ||||||||||||||
Amortization of premium on investments, net | ||||||||||||||
Allowance for expected credit losses | ||||||||||||||
Deferred income tax expense (benefit) | ( | |||||||||||||
Net realized and unrealized (gains) losses on investments | ( | |||||||||||||
Asset impairment and related charges | ||||||||||||||
Noncash operating lease term adjustment | ( | |||||||||||||
Change in operating assets and liabilities: | ||||||||||||||
Premiums receivable | ( | ( | ||||||||||||
Reinsurance recoverable on paid and unpaid losses | ||||||||||||||
Cloud computing arrangements | ( | ( | ||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Current federal income taxes | ( | |||||||||||||
Unpaid losses and loss adjustment expenses | ( | ( | ||||||||||||
Unearned premiums | ||||||||||||||
Accounts payable, accrued expenses and other liabilities | ( | ( | ||||||||||||
Deferred reinsurance gain—LPT Agreement | ( | ( | ||||||||||||
Operating lease liabilities | ( | ( | ||||||||||||
Non-cancellable obligations | ( | |||||||||||||
Other | ||||||||||||||
Net cash provided by operating activities | ||||||||||||||
Investing activities | ||||||||||||||
Purchases of fixed maturity securities | ( | ( | ||||||||||||
Purchases of equity securities | ( | ( | ||||||||||||
Purchases of short-term investments | ( | ( | ||||||||||||
Purchases of other invested assets | ( | ( | ||||||||||||
Proceeds from sale of fixed maturity securities | ||||||||||||||
Proceeds from sale of equity securities | ||||||||||||||
Proceeds from maturities and redemptions of fixed maturity securities | ||||||||||||||
Proceeds from maturities of short-term investments | ||||||||||||||
Net change in unsettled investment purchases and sales | ( | |||||||||||||
Capital expenditures and other | ( | ( | ||||||||||||
Net cash provided by (used in) investing activities | ( | |||||||||||||
Financing activities | ||||||||||||||
Acquisition of common stock | ( | ( | ||||||||||||
Cash transactions related to stock-based compensation | ( | ( | ||||||||||||
Dividends paid to stockholders | ( | ( | ||||||||||||
Proceeds from FHLB advances | ||||||||||||||
Repayments on FHLB advances | ( | |||||||||||||
Proceeds from line of credit advances | ||||||||||||||
Repayments on line of credit advances | ( | |||||||||||||
Payments on finance leases | ( | ( | ||||||||||||
Net cash (used in) provided by financing activities | ( | |||||||||||||
Net increase in cash, cash equivalents and restricted cash | ||||||||||||||
Cash, cash equivalents and restricted cash at the beginning of the period | ||||||||||||||
Cash, cash equivalents and restricted cash at the end of the period | $ | $ |
As of | As of | |||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||
(unaudited) | ||||||||||||||
(in millions) | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash and cash equivalents supporting reinsurance obligations | ||||||||||||||
Total cash, cash equivalents and restricted cash | $ | $ |
September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||
Total investments at fair value | $ | $ | $ | $ | ||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||
Restricted cash and cash equivalents | ||||||||||||||||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
U.S. Agencies | ||||||||||||||||||||||||||||||||||||||
States and municipalities | ||||||||||||||||||||||||||||||||||||||
Corporate securities | ||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | ||||||||||||||||||||||||||||||||||||||
Foreign government securities | ||||||||||||||||||||||||||||||||||||||
Other securities | ||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Equity securities at fair value: | ||||||||||||||||||||||||||||||||||||||
Industrial and miscellaneous | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||
Total equity securities at fair value | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Short-term investments | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Total investments at fair value | $ | $ | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
(in millions) | |||||||||||
Cash equivalents carried at NAV | $ | $ | |||||||||
Other invested assets carried at NAV |
Level 3 Securities | |||||
(in millions) | |||||
Beginning balance, January 1, 2023 | $ | ||||
Purchases | |||||
Unrealized losses included in comprehensive income or loss | ( | ||||
Ending balance, September 30, 2023 | $ |
Amortized Cost | Allowance for Current Expected Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
At September 30, 2023 | ||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
U.S. Agencies | ( | |||||||||||||||||||||||||||||||
States and municipalities | ( | |||||||||||||||||||||||||||||||
Corporate securities | ( | ( | ||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | |||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | |||||||||||||||||||||||||||||||
Asset-backed securities | ( | |||||||||||||||||||||||||||||||
Collateralized loan obligations | ( | |||||||||||||||||||||||||||||||
Foreign government securities | ( | |||||||||||||||||||||||||||||||
Other securities(1) | ( | ( | ||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||||||||
Total AFS investments | $ | $ | ( | $ | $ | ( | $ |
At December 31, 2022 | ||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
U.S. Agencies | ( | |||||||||||||||||||||||||||||||
States and municipalities | ( | |||||||||||||||||||||||||||||||
Corporate securities | ( | ( | ||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | |||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | |||||||||||||||||||||||||||||||
Asset-backed securities | ( | |||||||||||||||||||||||||||||||
Collateralized loan obligations | ( | |||||||||||||||||||||||||||||||
Foreign government securities | ( | |||||||||||||||||||||||||||||||
Other securities(1) | ( | ( | ||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||||||||
Total AFS investments | $ | $ | ( | $ | $ | ( | $ |
Cost | Estimated Fair Value | |||||||||||||
(in millions) | ||||||||||||||
At September 30, 2023 | ||||||||||||||
Equity securities at fair value | ||||||||||||||
Industrial and miscellaneous | $ | $ | ||||||||||||
Other | ||||||||||||||
Total equity securities at fair value | $ | $ |
At December 31, 2022 | ||||||||||||||
Equity securities at fair value | ||||||||||||||
Industrial and miscellaneous | $ | $ | ||||||||||||
Other | ||||||||||||||
Total equity securities at fair value | $ | $ |
Amortized Cost | Estimated Fair Value | |||||||||||||
(in millions) | ||||||||||||||
Due in one year or less | $ | $ | ||||||||||||
Due after one year through five years | ||||||||||||||
Due after five years through ten years | ||||||||||||||
Due after ten years | ||||||||||||||
Mortgage and asset-backed securities | ||||||||||||||
Total | $ | $ |
September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Estimated Fair Value | Gross Unrealized Losses | Number of Issues | Estimated Fair Value | Gross Unrealized Losses | Number of Issues | |||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||
Less than 12 months: | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||
U.S. Agencies | ( | |||||||||||||||||||||||||||||||||||||
States and municipalities | ( | ( | ||||||||||||||||||||||||||||||||||||
Corporate securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | |||||||||||||||||||||||||||||||||||||
Asset-backed securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | ( | |||||||||||||||||||||||||||||||||||||
Other securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Total less than 12 months | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||
12 months or greater: | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||
US Agencies | ( | |||||||||||||||||||||||||||||||||||||
States and municipalities | ( | ( | ||||||||||||||||||||||||||||||||||||
Corporate securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Asset-backed securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | ( | ( | ||||||||||||||||||||||||||||||||||||
Foreign government securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Other securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Total 12 months or greater | $ | $ | ( | $ | $ | ( |
Gross Realized Gains | Gross Realized Losses | Net Decrease (Increase) in CECL Allowance | Change in Net Unrealized Gains (Losses) | Changes in Fair Value Reflected in Earnings | Changes in Fair Value Reflected in AOCI (1), before tax | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | ( | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||
Equity securities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Other invested assets | ||||||||||||||||||||||||||||||||||||||
Total investments | $ | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||
Equity securities | ( | |||||||||||||||||||||||||||||||||||||
Other invested assets | ||||||||||||||||||||||||||||||||||||||
Total investments | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Equity securities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Other invested assets | ( | ( | ||||||||||||||||||||||||||||||||||||
Total investments | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
Equity securities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Other invested assets | ||||||||||||||||||||||||||||||||||||||
Total investments | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Fixed maturity securities | $ | $ | $ | $ | ||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||
Other invested assets | ||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||
Cash equivalents and restricted cash | ||||||||||||||||||||||||||
Gross investment income | ||||||||||||||||||||||||||
Investment expenses | ( | ( | ( | ( | ||||||||||||||||||||||
Net investment income | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Beginning balance of CECL on premiums receivable | $ | $ | $ | $ | ||||||||||||||||||||||
Net change in CECL provision | ||||||||||||||||||||||||||
Write-offs charged against CECL | ( | ( | ( | ( | ||||||||||||||||||||||
Recoveries collected | ( | ( | ( | ( | ||||||||||||||||||||||
Ending balance of CECL on premiums receivable | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Beginning balance of CECL on reinsurance recoverables | $ | $ | $ | $ | ||||||||||||||||||||||
Net change in CECL provision | ||||||||||||||||||||||||||
Ending balance of CECL on reinsurance recoverables | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Beginning balance of CECL on AFS securities | $ | $ | $ | $ | ||||||||||||||||||||||
Net change in CECL provision | ( | ( | ||||||||||||||||||||||||
Reductions in allowance from disposals | ( | ( | ||||||||||||||||||||||||
Recoveries of amounts previously written off | ( | ( | ||||||||||||||||||||||||
Ending balance of CECL on AFS securities | $ | $ | $ | $ |
As of September 30, | As of December 31, | ||||||||||
2023 | 2022 | ||||||||||
(in millions) | |||||||||||
Furniture and equipment | $ | $ | |||||||||
Leasehold improvements | |||||||||||
Computers and software | |||||||||||
Automobiles | |||||||||||
Property and equipment, gross | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Property and equipment, net | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Operating lease expense | $ | $ | $ | $ | |||||||||||||||||||
Finance lease expense | |||||||||||||||||||||||
Total lease expense | $ | $ | $ | $ |
As of September 30, 2023 | ||||||||||||||
Operating Leases | Finance Leases | |||||||||||||
(in millions) | ||||||||||||||
2023 | $ | $ | ||||||||||||
2024 | ||||||||||||||
2025 | ||||||||||||||
2026 | ||||||||||||||
2027 | ||||||||||||||
Thereafter | ||||||||||||||
Total lease payments | ||||||||||||||
Less: imputed interest | ( | |||||||||||||
Total | $ | $ |
As of September 30, | As of December 31, | |||||||||||||
2023 | 2022 | |||||||||||||
(in millions) | ||||||||||||||
Operating leases: | ||||||||||||||
Operating lease right-of-use asset | $ | $ | ||||||||||||
Operating lease liability | ||||||||||||||
Finance leases: | ||||||||||||||
Property and equipment, gross | ||||||||||||||
Accumulated depreciation | ( | ( | ||||||||||||
Property and equipment, net | ||||||||||||||
Other liabilities | $ | $ |
Nine Months Ended | ||||||||||||||
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
(in millions) | ||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows used for operating leases | $ | $ | ||||||||||||
Financing cash flows used for finance leases | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Unpaid losses and LAE at beginning of period | $ | $ | $ | $ | ||||||||||||||||||||||
Less reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE | ||||||||||||||||||||||||||
Net unpaid losses and LAE at beginning of period | ||||||||||||||||||||||||||
Losses and LAE, net of reinsurance, incurred during the period related to: | ||||||||||||||||||||||||||
Current period | ||||||||||||||||||||||||||
Prior periods | ( | ( | ( | ( | ||||||||||||||||||||||
Total net losses and LAE incurred during the period | ||||||||||||||||||||||||||
Paid losses and LAE, net of reinsurance, related to: | ||||||||||||||||||||||||||
Current period | ||||||||||||||||||||||||||
Prior periods | ||||||||||||||||||||||||||
Total net paid losses and LAE during the period | ||||||||||||||||||||||||||
Ending unpaid losses and LAE, net of reinsurance | ||||||||||||||||||||||||||
Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE | ||||||||||||||||||||||||||
Unpaid losses and LAE at end of period | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | |||||||||||||
(in millions) | ||||||||||||||
Net unrealized losses on investments, before taxes | $ | ( | $ | ( | ||||||||||
Deferred tax benefit on net unrealized losses | ||||||||||||||
Total accumulated other comprehensive loss | $ | ( | $ | ( |
Number Awarded | Weighted Average Fair Value on Date of Grant | Aggregate Fair Value on Date of Grant | |||||||||||||||
(in millions) | |||||||||||||||||
March 2023 | |||||||||||||||||
RSUs(1) | $ | ||||||||||||||||
RSUs(1) | |||||||||||||||||
PSUs(2) | |||||||||||||||||
May 2023 | |||||||||||||||||
RSUs(1) | $ | $ | |||||||||||||||
PSUs(2) | |||||||||||||||||
RSUs(3) | |||||||||||||||||
August 2023 | |||||||||||||||||
RSUs(1) | $ | $ | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(in millions, except share data) | ||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average number of shares outstanding—basic | ||||||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||
PSUs | ||||||||||||||||||||||||||
Stock options | ||||||||||||||||||||||||||
RSUs | ||||||||||||||||||||||||||
Potential dilutive shares | ||||||||||||||||||||||||||
Weighted average number of shares outstanding—diluted |
Employers | Cerity | Corporate and Other | Total | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||
Gross premiums written | $ | $ | $ | $ | ||||||||||||||||||||||
Net premiums written | ||||||||||||||||||||||||||
Net premiums earned | ||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||
Net realized and unrealized losses on investments | ( | ( | ( | ( | ||||||||||||||||||||||
Other income | ||||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||
Losses and loss adjustment expenses | ( | |||||||||||||||||||||||||
Commission expense | ||||||||||||||||||||||||||
Underwriting and general and administrative expenses | ||||||||||||||||||||||||||
Interest and financing expenses | ||||||||||||||||||||||||||
Total expenses | ||||||||||||||||||||||||||
Net income (loss) before income taxes | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||
Gross premiums written | $ | $ | $ | $ | ||||||||||||||||||||||
Net premiums written | ||||||||||||||||||||||||||
Net premiums earned | ||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | ( | ( | ||||||||||||||||||||||||
Other income | ||||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||
Losses and loss adjustment expenses | ( | |||||||||||||||||||||||||
Commission expense | ||||||||||||||||||||||||||
Underwriting and general and administrative expenses | ||||||||||||||||||||||||||
Interest and financing expenses | ||||||||||||||||||||||||||
Total expenses | ||||||||||||||||||||||||||
Net income (loss) before income taxes | $ | $ | ( | $ | $ | |||||||||||||||||||||
Employers | Cerity | Corporate and Other | Total | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||
Gross premiums written | $ | $ | $ | $ | ||||||||||||||||||||||
Net premiums written | ||||||||||||||||||||||||||
Net premiums earned | ||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | ( | ( | ||||||||||||||||||||||||
Other (loss) income | ( | ( | ||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||
Losses and loss adjustment expenses | ( | |||||||||||||||||||||||||
Commission expense | ||||||||||||||||||||||||||
Underwriting and general and administrative expenses | ||||||||||||||||||||||||||
Interest and financing expenses | ||||||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||
Total expenses | ||||||||||||||||||||||||||
Net income (loss) before income taxes | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||
Gross premiums written | $ | $ | $ | $ | ||||||||||||||||||||||
Net premiums written | ||||||||||||||||||||||||||
Net premiums earned | ||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||
Net realized and unrealized losses on investments | ( | ( | ( | ( | ||||||||||||||||||||||
Other income | ||||||||||||||||||||||||||
Total revenues | ( | |||||||||||||||||||||||||
Losses and loss adjustment expenses | ( | |||||||||||||||||||||||||
Commission expense | ||||||||||||||||||||||||||
Underwriting and general and administrative expenses | ||||||||||||||||||||||||||
Interest and financing expenses | ||||||||||||||||||||||||||
Total expenses | ||||||||||||||||||||||||||
Net income (loss) before income taxes | $ | $ | ( | $ | ( | $ | ( |
September 30, 2023 | December 31, 2022 | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
State | In-force Premiums | Policies In-force | In-force Premiums | Policies In-force | In-force Premiums | Policies In-force | In-force Premiums | Policies In-force | ||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
California | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Florida | ||||||||||||||||||||||||||||||||||||||||||||||||||
New York | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other (43 states and D.C.) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total in-force | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Estimated audit premium | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total in-force, including estimated audit premium | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Gross premiums written | $ | 196.2 | $ | 188.6 | $ | 589.5 | $ | 540.4 | ||||||||||||||||||
Net premiums written | $ | 194.5 | $ | 186.8 | $ | 584.2 | $ | 535.3 | ||||||||||||||||||
Net premiums earned | $ | 184.6 | $ | 178.7 | $ | 534.4 | $ | 494.1 | ||||||||||||||||||
Net investment income | 25.9 | 23.7 | 80.3 | 62.8 | ||||||||||||||||||||||
Net realized and unrealized (losses) gains on investments | (7.1) | 1.9 | 10.7 | (65.5) | ||||||||||||||||||||||
Other income (loss) | 0.1 | 0.1 | (0.2) | 0.3 | ||||||||||||||||||||||
Total revenues | 203.5 | 204.4 | 625.2 | 491.7 | ||||||||||||||||||||||
Losses and LAE | 114.9 | 112.3 | 312.8 | 299.7 | ||||||||||||||||||||||
Commission expense | 26.7 | 25.3 | 73.8 | 69.9 | ||||||||||||||||||||||
Underwriting and general and administrative expenses | 43.5 | 41.9 | 133.7 | 120.6 | ||||||||||||||||||||||
Interest and financing expenses | 1.0 | 1.1 | 5.2 | 1.6 | ||||||||||||||||||||||
Other expenses | — | — | 9.4 | — | ||||||||||||||||||||||
Total expenses | 186.1 | 180.6 | 534.9 | 491.8 | ||||||||||||||||||||||
Income tax expense (benefit) | 3.4 | 4.7 | 17.8 | (1.4) | ||||||||||||||||||||||
Net income | $ | 14.0 | $ | 19.1 | $ | 72.5 | $ | 1.3 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Gross premiums written | $ | 194.0 | $ | 187.1 | $ | 584.4 | $ | 536.8 | |||||||||||||||
Net premiums written | $ | 192.3 | $ | 185.3 | $ | 579.1 | $ | 531.7 | |||||||||||||||
Net premiums earned | $ | 182.7 | $ | 177.9 | $ | 529.5 | $ | 492.1 | |||||||||||||||
Net investment income | 23.4 | 21.4 | 72.3 | 57.7 | |||||||||||||||||||
Net realized and unrealized (losses) gains on investments | (5.9) | 2.4 | 11.1 | (56.0) | |||||||||||||||||||
Other income (loss) | 0.1 | 0.1 | (0.2) | 0.3 | |||||||||||||||||||
Total revenues | 200.3 | 201.8 | 612.7 | 494.1 | |||||||||||||||||||
Losses and LAE | 115.5 | 113.8 | 315.5 | 304.7 | |||||||||||||||||||
Commission expense | 26.6 | 25.2 | 73.6 | 69.8 | |||||||||||||||||||
Underwriting expenses | 36.5 | 35.7 | 111.8 | 101.8 | |||||||||||||||||||
Interest and financing expenses | 0.9 | 1.0 | 4.9 | 1.3 | |||||||||||||||||||
Other expenses | — | — | 9.4 | — | |||||||||||||||||||
Total expenses | 179.5 | 175.7 | 515.2 | 477.6 | |||||||||||||||||||
Net income before income taxes | $ | 20.8 | $ | 26.1 | $ | 97.5 | $ | 16.5 | |||||||||||||||
Underwriting income | $ | 4.1 | $ | 3.2 | $ | 28.6 | $ | 15.8 | |||||||||||||||
Combined ratio | 97.8 | % | 98.3 | % | 94.6 | % | 96.8 | % |
September 30, 2023 | December 31, 2022 | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
State | In-force Premiums | Policies In-force | In-force Premiums | Policies In-force | In-force Premiums | Policies In-force | In-force Premiums | Policies In-force | ||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
California | $ | 300.4 | 42,712 | $ | 278.4 | 42,438 | $ | 272.2 | 42,562 | $ | 258.1 | 40,543 | ||||||||||||||||||||||||||||||||||||||
Florida | 54.4 | 9,651 | 48.8 | 9,153 | 46.5 | 8,847 | 40.8 | 7,895 | ||||||||||||||||||||||||||||||||||||||||||
New York | 30.0 | 7,224 | 26.9 | 7,257 | 26.2 | 7,366 | 24.5 | 7,178 | ||||||||||||||||||||||||||||||||||||||||||
Other (43 states and D.C.) | 283.2 | 62,312 | 263.4 | 59,652 | 258.2 | 59,096 | 246.5 | 54,548 | ||||||||||||||||||||||||||||||||||||||||||
Total in-force | $ | 668.0 | 121,899 | $ | 617.5 | 118,500 | $ | 603.1 | 117,871 | $ | 569.9 | 110,164 | ||||||||||||||||||||||||||||||||||||||
Estimated audit premium | 46.1 | — | 42.5 | — | 42.2 | — | 42.3 | — | ||||||||||||||||||||||||||||||||||||||||||
Total in-force, including estimated audit premium | $ | 714.1 | 121,899 | $ | 660.0 | 118,500 | $ | 645.3 | 117,871 | $ | 612.2 | 110,164 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Loss and LAE ratio | 63.2 | % | 64.0 | % | 59.6 | % | 61.9 | % | |||||||||||||||
Commission expense ratio | 14.6 | 14.2 | 13.9 | 14.2 | |||||||||||||||||||
Underwriting expense ratio | 20.0 | 20.1 | 21.1 | 20.7 | |||||||||||||||||||
Combined Ratio | 97.8 | % | 98.3 | % | 94.6 | % | 96.8 | % | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Current accident year losses and LAE | $ | 115.6 | $ | 114.1 | $ | 335.5 | $ | 315.0 | |||||||||||||||
Prior accident year favorable development, net | (0.1) | (0.3) | (20.0) | (10.3) | |||||||||||||||||||
Calendar year losses and LAE | $ | 115.5 | $ | 113.8 | $ | 315.5 | $ | 304.7 | |||||||||||||||
Current accident year loss and LAE ratio | 63.3 | % | 64.1 | % | 63.4 | % | 64.0 | % | |||||||||||||||
Calendar accident year loss and LAE ratio | 63.2 | % | 64.0 | % | 59.6 | % | 61.9 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Gross premiums written | $ | 2.2 | $ | 1.5 | $ | 5.1 | $ | 3.6 | |||||||||||||||
Net premiums written | $ | 2.2 | $ | 1.5 | $ | 5.1 | $ | 3.6 | |||||||||||||||
Net premiums earned | $ | 1.9 | $ | 0.8 | $ | 4.9 | $ | 2.0 | |||||||||||||||
Net investment income | 1.6 | 1.2 | 5.0 | 2.7 | |||||||||||||||||||
Net realized and unrealized losses on investments | (0.4) | (0.3) | (0.2) | (1.6) | |||||||||||||||||||
Total revenues | 3.1 | 1.7 | 9.7 | 3.1 | |||||||||||||||||||
Losses and LAE | 1.3 | 0.6 | 3.2 | 1.3 | |||||||||||||||||||
Commission expense | 0.1 | 0.1 | 0.2 | 0.1 | |||||||||||||||||||
Underwriting expenses | 3.6 | 3.4 | 12.0 | 9.9 | |||||||||||||||||||
Total expenses | 5.0 | 4.1 | 15.4 | 11.3 | |||||||||||||||||||
Net loss before income taxes | $ | (1.9) | $ | (2.4) | $ | (5.7) | $ | (8.2) | |||||||||||||||
Underwriting loss | $ | (3.1) | $ | (3.3) | $ | (10.5) | $ | (9.3) | |||||||||||||||
Combined ratio | n/m | n/m | n/m | n/m | |||||||||||||||||||
n/m - not meaningful |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net investment income | 0.9 | 1.1 | $ | 3.0 | $ | 2.4 | |||||||||||||||||
Net realized and unrealized losses on investments | (0.8) | (0.2) | (0.2) | (7.9) | |||||||||||||||||||
Total revenues (losses) | 0.1 | 0.9 | 2.8 | (5.5) | |||||||||||||||||||
Losses and LAE - LPT | (1.9) | (2.1) | (5.9) | (6.3) | |||||||||||||||||||
General and administrative expenses | 3.4 | 2.8 | 9.9 | 8.9 | |||||||||||||||||||
Interest and financing expenses | 0.1 | 0.1 | 0.3 | 0.3 | |||||||||||||||||||
Total expenses | 1.6 | 0.8 | 4.3 | 2.9 | |||||||||||||||||||
Net (loss) income before income taxes | $ | (1.5) | $ | 0.1 | $ | (1.5) | $ | (8.4) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Amortization of the Deferred Gain related to losses | $ | 1.5 | $ | 1.7 | $ | 4.7 | $ | 5.1 | |||||||||||||||
Amortization of the Deferred Gain related to contingent commission | 0.4 | 0.4 | 1.2 | 1.2 | |||||||||||||||||||
Total impact of the LPT | $ | 1.9 | $ | 2.1 | $ | 5.9 | $ | 6.3 |
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
(in millions) | ||||||||||||||
Cash, cash equivalents, and restricted cash provided by (used in): | ||||||||||||||
Operating activities | $ | 21.8 | $ | 67.5 | ||||||||||
Investing activities | 225.0 | (97.7) | ||||||||||||
Financing activities | (227.2) | 103.2 | ||||||||||||
Increase in cash, cash equivalents, and restricted cash | $ | 19.6 | $ | 73.0 |
Category | Estimated Fair Value | Percentage of Total | Book Yield | |||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||
U.S. Treasuries | $ | 94.1 | 4.2 | % | 3.0 | % | ||||||||||||||
U.S. Agencies | 2.1 | 0.1 | 2.9 | |||||||||||||||||
States and municipalities | 228.2 | 10.2 | 3.5 | |||||||||||||||||
Corporate securities | 917.9 | 41.1 | 3.6 | |||||||||||||||||
Residential mortgage-backed securities | 343.3 | 15.3 | 3.3 | |||||||||||||||||
Commercial mortgage-backed securities | 56.8 | 2.5 | 3.5 | |||||||||||||||||
Asset-backed securities | 106.8 | 4.8 | 5.1 | |||||||||||||||||
Collateralized loan obligations | 126.6 | 5.7 | 7.2 | |||||||||||||||||
Foreign government securities | 9.3 | 0.4 | 2.8 | |||||||||||||||||
Other securities | 112.1 | 5.0 | 8.5 | |||||||||||||||||
Equity securities | 193.0 | 8.6 | 3.2 | |||||||||||||||||
Short-term investments | 46.8 | 2.1 | 5.5 | |||||||||||||||||
Total investments at fair value | $ | 2,237.0 | 100.0 | % | ||||||||||||||||
Weighted average yield | 4.1 | % | ||||||||||||||||||
Rating | Percentage of Total Estimated Fair Value | |||||||
“AAA” | 9.2 | % | ||||||
“AA” | 36.6 | |||||||
“A” | 31.1 | |||||||
“BBB” | 14.4 | |||||||
Below Investment Grade | 8.7 | |||||||
Total | 100.0 | % |
Hypothetical Changes in Interest Rates | Estimated Pre-tax Increase (Decrease) in Fair Value | |||||||||||||
(in millions, except percentages) | ||||||||||||||
300 basis point rise | $ | (228.3) | (11.2) | % | ||||||||||
200 basis point rise | (155.1) | (7.6) | ||||||||||||
100 basis point rise | (76.4) | (3.7) | ||||||||||||
50 basis point decline | 51.6 | 2.5 | ||||||||||||
100 basis point decline | 96.7 | 4.7 | ||||||||||||
200 basis point decline | 190.0 | 9.3 | ||||||||||||
300 basis point decline | 285.8 | 14.0 |
(in millions) | Cost | Fair Value | 10% Fair Value Decrease | Pre-tax Impact on Decrease in Total Equity Securities | 10% Fair Value Increase | Pre-tax Impact on Increase in Total Equity Securities | |||||||||||||||||||||||||||||
Equity securities | $ | 126.3 | $ | 193.0 | $ | 173.7 | $ | (19.3) | $ | 212.3 | $ | 19.3 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
July 1 - July 31 | 30,000 | $ | 38.24 | 30,000 | $ | 49.5 | ||||||||||||||||||||
August 1 - August 31 | 260,216 | 39.04 | 260,216 | 39.4 | ||||||||||||||||||||||
September 1 - September 30 | 76,993 | 38.92 | 76,993 | 36.4 | ||||||||||||||||||||||
367,209 | $ | 38.95 | 367,209 |
Incorporated by Reference Herein | ||||||||||||||||||||||||||||||||||||||
Exhibit No. | Description of Exhibit | Included Herewith | Form | File No. | Exhibit | Filing Date | ||||||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||||||||
32.1 | X | |||||||||||||||||||||||||||||||||||||
32.2 | X | |||||||||||||||||||||||||||||||||||||
101.INS | The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Statements of Stockholders' Equity, (iv) Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags | X | ||||||||||||||||||||||||||||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||||||||||||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | X |
Date: | October 27, 2023 | /s/ Michael S. Paquette | ||||||
Michael S. Paquette | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
Employers Holdings, Inc. | ||||||||
(Principal Financial and Accounting Officer) |
Date: | October 27, 2023 | /s/ Katherine H. Antonello | ||||||
Katherine H. Antonello | ||||||||
President and Chief Executive Officer | ||||||||
Employers Holdings, Inc. |
Date: | October 27, 2023 | /s/ Michael S. Paquette | ||||||
Michael S. Paquette | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
Employers Holdings, Inc. | ||||||||
(Principal Financial and Accounting Officer) |
Date: | October 27, 2023 | /s/ Katherine H. Antonello | ||||||
Katherine H. Antonello | ||||||||
President and Chief Executive Officer | ||||||||
Employers Holdings, Inc. |
Date: | October 27, 2023 | /s/ Michael S. Paquette | ||||||
Michael S. Paquette | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
Employers Holdings, Inc. | ||||||||
(Principal Financial and Accounting Officer) |
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Statement Parenthetical [Abstract] | ||||
OCI, Debt Securities, Available-for-Sale, Gain (Loss), before Adjustment, Tax | $ 7.3 | $ 16.0 | $ 5.3 | $ 59.0 |
Other comprehensive income (loss), reclassification adjustment for sale of securities included in net income, tax | $ (0.3) | $ 1.1 | $ (0.6) | $ (0.7) |
Consolidated Statements of Stockholders Equity (Parentheticals) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Change in net unrealized (losses) gains on investments, net of tax | $ 7.0 | $ 17.1 | $ 4.7 | $ 58.3 |
Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation | Basis of Presentation and Summary of Operations Employers Holdings, Inc. (EHI) is a Nevada holding company. Through its wholly owned insurance subsidiaries, Employers Insurance Company of Nevada (EICN), Employers Compensation Insurance Company (ECIC), Employers Preferred Insurance Company (EPIC), Employers Assurance Company (EAC), and Cerity Insurance Company (CIC), EHI is engaged in the commercial property and casualty insurance industry, specializing in workers’ compensation products and services. Unless otherwise indicated, all references to the “Company” refer to EHI, together with its subsidiaries. In 1999, the Nevada State Industrial Insurance System (the Fund) entered into a retroactive 100% quota share reinsurance agreement (the LPT Agreement) through a loss portfolio transfer transaction with third party reinsurers. The LPT Agreement commenced on June 30, 1999 and will remain in effect until: (i) all claims under the covered policies have closed; (ii) the LPT Agreement is commuted or terminated, upon the mutual agreement of the parties; or (iii) the reinsurers’ aggregate maximum limit of liability is exhausted, whichever occurs first. The LPT Agreement does not provide for any additional termination terms. On January 1, 2000, EICN assumed all of the assets, liabilities and operations of the Fund, including the Fund’s rights and obligations associated with the LPT Agreement (See Note 9). The Company accounts for the LPT Agreement as retroactive reinsurance. Upon entry into the LPT Agreement, an initial deferred reinsurance gain (the Deferred Gain) was recorded as a liability on the Company’s Consolidated Balance Sheets. The Company is entitled to receive a contingent profit commission under the LPT Agreement. The contingent profit commission is estimated based on both actual paid results to date and projections of expected paid losses under the LPT Agreement and is recorded as an asset on the Company’s Consolidated Balance Sheets. The accompanying consolidated financial statements have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation of the Company’s consolidated financial position and results of operations for the periods presented have been included. The results of operations for an interim period are not necessarily indicative of the results for an entire year. These financial statements have been prepared consistent with the accounting policies described in the Company’s Form 10-K for the year ended December 31, 2022 (Annual Report). The Company operates through two reportable segments: Employers and Cerity. Each of the segments represents a separate and distinct underwriting platform through which the Company conducts insurance business. This presentation allows the reader, as well as the Company's chief operating decision makers, to objectively analyze the business originated through each of these channels. Detailed financial information about the Company's operating segments is presented in Note 14. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. As a result, actual results could differ from these estimates. The most significant areas that require management judgment are the estimate of unpaid losses and loss adjustment expenses (LAE), evaluation of reinsurance recoverables, recognition of premium revenue, recoverability of deferred income taxes, and valuation of investments.
|
New Accounting Standards |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | New Accounting Standards Recently Issued Accounting Standards None. Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848). This update provided optional transition guidance to ease the potential accounting burden associated with transitioning away from the London Interbank Offered Rate (LIBOR), with optional expedients and exceptions related to the application of US GAAP to contracts, hedging relationships and other transactions affected by reference rate reform. Companies can elect to adopt this ASU through December 31, 2024. The Company determined that there was no impact of LIBOR transitioning on its existing contracts and investments.
|
Valuation of Financial Instruments |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Valuation of Financial Instruments Financial Instruments Carried at Fair Value The carrying value and the estimated fair value of the Company’s financial instruments at fair value were as follows:
Assets and liabilities recorded at fair value on the Company’s Consolidated Balance Sheets are categorized based upon the levels of judgment associated with the inputs used to measure their fair value. Level inputs are defined as follows: •Level 1 - Inputs are unadjusted quoted market prices for identical assets or liabilities in active markets at the measurement date. •Level 2 - Inputs other than Level 1 prices that are observable for similar assets or liabilities through corroboration with market data at the measurement date. •Level 3 - Inputs that are unobservable that reflect management’s best estimate of what willing market participants would use in pricing the assets or liabilities at the measurement date. The Company uses third party pricing services to assist with its investment accounting function. The ultimate pricing source varies depending on the investment security and pricing service used, but investment securities valued on the basis of observable inputs (Levels 1 and 2) are generally assigned values on the basis of actual transactions. Securities valued on the basis of pricing models with significant unobservable inputs or non-binding broker quotes are classified as Level 3. The Company performs quarterly analyses on the prices it receives from third parties to determine whether the prices are reasonable estimates of fair value, including confirming the fair values of these securities through observable market prices using an alternative pricing source, as it is ultimately management’s responsibility to ensure that the fair values reflected in the Company’s consolidated financial statements are appropriate. If differences are noted in these analyses, the Company may obtain additional information from other pricing services to validate the quoted price. The Company bases all of its estimates of fair value for assets on the bid prices, when available, as they represent what a third-party market participant would be willing to pay in an arm’s length transaction. For securities not actively traded, third party pricing services may use quoted market prices of similar instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. Inputs that are often used in the valuation methodologies include, but are not limited to, broker quotes, benchmark yields, credit spreads, default rates, and prepayment speed assumptions. There were no material adjustments to the valuation methodology utilized by third party pricing services as of September 30, 2023 and December 31, 2022. These methods of valuation only produce an estimate of fair value if there is objectively verifiable information to produce a valuation. If objectively verifiable information is not available, the Company would be required to produce an estimate of fair value using some of the same methodologies, making assumptions for market-based inputs that are unavailable. As of September 30, 2023, the Company held $32.3 million of fixed maturity securities at fair value that were designated Level 3. These private placement securities were designated as Level 3 securities due to the limited amount of observable market information available. The following table presents the Company’s investments at fair value and the corresponding fair value measurements.
Financial Instruments Carried at Cost All of the Company's insurance subsidiaries are members of the Federal Home Loan Bank of San Francisco (FHLB). Members are required to purchase stock in the FHLB in addition to maintaining collateral deposits that back any funds advanced and standby letters of credit issued (See Note 10). The Company’s investment in FHLB stock is recorded at cost, which approximates fair value, as purchases and sales of these securities are at par value with the issuer. FHLB stock is considered a restricted security and is periodically evaluated by the Company for impairment based on the estimated ultimate recovery of par value. Financial Instruments Carried at Net Asset Value The Company has investments in private equity limited partnership interests that are included in Other invested assets on the Company’s Consolidated Balance Sheets. These investments do not have readily determinable fair values and are carried at net asset value (NAV) and therefore are excluded from the fair value hierarchy. The Company initially estimates the value of these investments using the transaction price. In subsequent periods, the Company measures these investments using NAV per share provided quarterly by the general partner, based on financial statements that are audited annually. These investments are generally not redeemable by the investees and cannot be sold without approval of the general partner. These investments have fund terms of 3 to 12 years, subject to two or three -year extensions at the general partner’s discretion. The Company will receive distributions of proceeds from dividends and interest from fund investments, as well as from the disposition of a fund investment, or portion thereof. The Company expects these distributions from time-to-time during the full course of the fund term. As of September 30, 2023, the Company had unfunded commitments to these private equity limited partnerships totaling $28.6 million. Additionally, certain cash equivalents, principally money market securities, are measured using NAV, which approximates fair value. The following table presents cash and investments carried at NAV on the Company’s Consolidated Balance Sheets.
|
Investments |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the Company’s available-for-sale (AFS) investments were as follows:
(1)Other securities within fixed maturity securities consist of bank loans, which are classified as AFS and reported at fair value. The cost and estimated fair value of the Company’s equity securities recorded at fair value at September 30, 2023 and December 31, 2022 were as follows:
The Company had Other invested assets totaling $90.9 million and $59.7 million (initial cost of $81.1 million and $54.4 million) at September 30, 2023 and December 31, 2022, respectively, consisting of private equity limited partnerships, which are carried at NAV based on information provided by the general partner. These investments are non-redeemable until conversion and are periodically evaluated by the Company for impairment based on the ultimate recovery of the investment. Changes in the value of these investments are recorded through Net realized and unrealized gains and losses on the Company’s Consolidated Statements of Comprehensive Income (Loss). The amortized cost and estimated fair value of the Company’s fixed maturity securities at September 30, 2023, by contractual maturity, are shown below. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
The following is a summary of AFS investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or greater in each case as of September 30, 2023 and December 31, 2022.
As of September 30, 2023 and December 31, 2022, the Company had an allowance for current expected credit losses (CECL) on AFS debt securities of $3.2 million and $4.5 million, respectively (See Note 5). Those fixed maturity securities whose total fair value was less than amortized cost at each of September 30, 2023 and December 31, 2022, were those in which the Company had no intent, need or requirement to sell at an amount less than their amortized cost. Realized gains and losses on investments include the gain or loss on a security at the time of sale compared to its original or adjusted cost (equity securities and other invested assets) or amortized cost (fixed maturity securities). Realized losses on fixed maturity securities are also recognized when securities are written down as a result of an other-than-temporary impairment or for changes in CECL. Net realized gains and losses on investments and the change in unrealized gains and losses on the Company’s investments recorded at fair value are determined on a specific-identification basis and were as follows:
(1)AOCI means Accumulated other comprehensive income or loss Proceeds from the sales of fixed maturity securities were $204.0 million and $329.5 million for the three and nine months ended September 30, 2023, respectively, compared to $30.6 million and $230.7 million for the three and nine months ended September 30, 2022, respectively. Net investment income was as follows:
The Company is required by various state laws and regulations to support, through securities on deposit or otherwise, its outstanding loss reserves in certain states in which it does business. These laws and regulations govern not only the amount but also the types of securities that are eligible for deposit. As of September 30, 2023 and December 31, 2022, securities having a fair value of $714.1 million and $745.9 million, respectively, were on deposit. Additionally, standby letters of credit from the FHLB were in place in lieu of $70.0 million of securities on deposit as of both September 30, 2023 and December 31, 2022 (See Note 10). Certain reinsurance contracts require the Company’s funds to be held in trust for the benefit of the ceding reinsurer to secure the outstanding liabilities assumed by the Company. The fair value of fixed maturity securities and restricted cash and cash equivalents held in trust for the benefit of ceding reinsurers at both September 30, 2023 and December 31, 2022 was $2.7 million.
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Current Expected Credit Losses |
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Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Losses | Current Expected Credit Losses Premiums Receivable Premiums receivable balances are all due within one year. The Company currently determines the allowance for premiums receivable based on an internal aging schedule using collectability and historical payment patterns, as well as current and expected future market conditions to determine the appropriateness of the allowance. Historical payment patterns and future market conditions provide the basis for the estimation along with similar risk characteristics and the Company's business strategy, which have not changed significantly over time. Changes in the allowance for CECL are recorded through underwriting and general and administrative expenses. The table below shows the changes in CECL on premiums receivable.
Reinsurance Recoverable In assessing an allowance for reinsurance assets, which includes reinsurance recoverables and contingent commission receivables, the Company considers historical information, financial strength of reinsurers, collateralization amounts, and ratings to determine the appropriateness of the allowance. Historically, the Company has not experienced a credit loss from reinsurance transactions. In assessing future default, the Company evaluated the allowance for CECL under the ratings-based method using A.M. Best's Average Cumulative Net Impairment Rates. Reinsurer ratings are also assessed through this process. Changes in CECL are recorded through underwriting and general and administrative expenses. The table below shows the changes in CECL on reinsurance recoverables.
Investments The Company assesses all AFS debt securities in an unrealized loss position for CECL. The Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria is met, the security's amortized cost basis is written down to its fair value. For AFS debt securities that do not meet either criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. Any impairment that has not been recorded through an allowance for CECL is recognized in Accumulated other comprehensive loss on the Company's Consolidated Balance Sheets. Changes in CECL are recorded through realized capital losses. As of September 30, 2023, the Company established an aggregate allowance for CECL in the amount of $3.2 million. For the Company’s investments in fixed-income debt securities, the allowance for CECL was determined by: (i) observing the credit characteristics of those debt securities that may have demonstrated a credit loss as of that date and by comparing the present value of cash flows expected to be collected to its amortized cost basis; and (ii) observing the credit characteristics of those debt securities that are expected to demonstrate a credit loss in the future by comparing the present value of cash flows expected to be collected to its amortized cost basis. The expected present value of cash flows are calculated using scenario based credit loss models derived from the discounted cash flows under the Comprehensive Capital Analysis Review framework, which is adopted by the Federal Reserve. As of September 30, 2023, the Company did not intend to sell any of its AFS debt securities in which its amortized cost exceeded its fair value. Accrued interest receivable on AFS debt securities totaled $18.5 million at September 30, 2023 and is excluded from the estimate of CECL based on historically timely payments. The table below shows the changes in the allowance for CECL on available-for-sale securities.
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Property and Equipment |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | Property and Equipment Property and equipment consists of the following:
Depreciation expenses related to property and equipment for the three and nine months ended September 30, 2023 were $1.0 million and $3.7 million, respectively, and $5.3 million for the year ended December 31, 2022. Internally developed software costs of $0.5 million and $1.2 million were capitalized during the three and nine months ended September 30, 2023, respectively, and $1.2 million in internally developed software costs were capitalized during the year ended December 31, 2022. Cloud Computing Arrangements The Company’s capitalized costs associated with cloud computing arrangements totaled $33.2 million and $42.9 million, which were comprised of service contract fees and implementation costs associated with hosting arrangements as of September 30, 2023 and December 31, 2022, respectively. Total amortization for hosting arrangements was $4.2 million and $12.6 million for the three and nine months ended September 30, 2023, respectively, and $16.4 million for the year ended December 31, 2022. Leases The Company determines if an arrangement is a lease at the inception of the transaction. Operating leases for offices are presented as a right-of-use asset (ROU asset) and lease liability on the Company’s Consolidated Balance Sheets. Financing leases for automobiles are included in property and equipment and other liabilities on the Company’s Consolidated Balance Sheets. ROU assets represent the right to use an underlying asset for the lease term and the lease liability represents the obligation to make lease payments arising from the lease transaction. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. The Company uses collateralized incremental borrowing rates to determine the present value of lease payments. The ROU assets also include lease payments less any lease incentives within a lease agreement. The Company’s lease terms may include options to extend or terminate a lease. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As of September 30, 2023, the Company’s operating leases have remaining terms of year to five years, with options to extend up to five years with no termination provision. The Company’s finance leases have an option to terminate after one year. Components of lease expense were as follows:
As of September 30, 2023, the weighted average remaining lease term for operating leases was 3.9 years and for finance leases was 2.1 years. The weighted average discount rate was 0.6% and 7.4% for operating and finance leases, respectively. Maturities of lease liabilities were as follows:
Supplemental balance sheet information related to leases was as follows:
Supplemental cash flow information related to leases was as follows:
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Restructuring, Impairment, and Other Activities Disclosure | Lease Exit and Disposal Costs During the nine months ended September 30, 2023, the Company recorded a non-recurring charge in connection with the early termination of the lease associated with the Company's former corporate headquarters in Reno, Nevada. This charge included a one-time lease termination payment of $7.6 million, a write-off related to remaining leasehold improvements and furniture and equipment of $2.6 million, and estimated miscellaneous expenses associated with exiting the property of $0.2 million. The Company also recognized a lease termination gain pertaining to the elimination of the lease liability net of the right-of-use asset of $1.0 million, which amount is included in Other expenses on the Company’s Consolidated Statements of Comprehensive Income (Loss). The decision to terminate this operating lease was undertaken as part of an ongoing review of the Company's current and future facility needs.
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Income Taxes |
9 Months Ended |
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Sep. 30, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | Income TaxesThe Company’s effective tax rate for the three and nine months ended September 30, 2023 was 19.5% and 19.7%, respectively, and the Company’s effective tax rate for the three months ended September 30, 2022 was 19.7%. The Company's effective tax rate for the nine months ended September 30, 2022 was not meaningful. The effective rates during each of the periods presented included income tax benefits and exclusions associated with tax-advantaged investment income, LPT adjustments, and deferred gain amortization. |
Liability for Unpaid Losses and Loss Adjustment Expenses |
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Liability for Unpaid Losses and Loss Adjustment Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Unpaid Losses and Loss Adjustment Expenses | Liability for Unpaid Losses and Loss Adjustment Expenses The following table represents a reconciliation of changes in the liability for unpaid losses and LAE.
Total net losses and LAE included in the above table exclude amortization of the deferred reinsurance gain—LPT Agreement, which totaled $1.9 million and $2.1 million for the three months ended September 30, 2023 and 2022, respectively, and $5.9 million and $6.3 million for the nine months ended September 30, 2023 and 2022, respectively (see Note 9). The change in incurred losses and LAE attributable to prior periods for the three months ended September 30, 2023 represented net favorable loss reserve development on the Company's assigned risk business. The change in incurred losses and LAE attributable to prior periods for the nine months ended September 30, 2023 represented net favorable loss reserve development recognized on the Company's voluntary business. The net loss reserve development recognized on voluntary business during the nine months ended September 30, 2023 resulted from favorable loss experience. The change in incurred losses and LAE attributable to prior periods for the three months ended September 30, 2022 represented net favorable loss reserve development on the Company's assigned risk business. The change in incurred losses and LAE attributable to prior periods for the nine months ended September 30, 2022 represented $9.6 million of net favorable development recognized on the Company's voluntary business, with the remaining balance relating to assigned risk business. The net loss reserve development recognized on voluntary business during the nine months ended September 30, 2022 resulted from favorable loss experience.
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LPT Agreement |
9 Months Ended |
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Sep. 30, 2023 | |
LPT Agreement [Abstract] | |
LPT Agreement | LPT Agreement The Company is party to the LPT Agreement under which $1.5 billion in liabilities for losses and LAE related to claims incurred by the Fund prior to July 1, 1995 were reinsured for consideration of $775.0 million. The LPT Agreement provides coverage up to $2.0 billion. The Company records its estimate of contingent profit commission in the accompanying Consolidated Balance Sheets as Contingent commission receivable–LPT Agreement and a corresponding liability is recorded in the accompanying Consolidated Balance Sheets in Deferred reinsurance gain–LPT Agreement. The Deferred Gain is being amortized using the recovery method. Amortization is determined by the proportion of actual reinsurance recoveries to total estimated recoveries over the life of the LPT Agreement, except for the contingent profit commission, which is amortized through June 30, 2024, the date through which the Company is entitled to receive a contingent profit commission under the LPT Agreement. The amortization is recorded in losses and LAE incurred in the accompanying Consolidated Statements of Comprehensive Income (Loss). Any adjustments to the Deferred Gain are recorded in losses and LAE incurred in the accompanying Consolidated Statements of Comprehensive Income (Loss). The Company amortized $1.9 million and $2.1 million of the Deferred Gain for the three months ended September 30, 2023 and 2022, respectively, and $5.9 million and $6.3 million for the nine months ended September 30, 2023 and 2022, respectively. The remaining Deferred Gain was $100.2 million and $106.1 million as of September 30, 2023 and December 31, 2022, respectively. The estimated remaining liabilities subject to the LPT Agreement were $294.4 million and $308.6 million as of September 30, 2023 and December 31, 2022, respectively. Losses and LAE paid with respect to the LPT Agreement totaled $873.0 million and $858.9 million from inception through September 30, 2023 and December 31, 2022, respectively.
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Accumulated Other Comprehensive Income |
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Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income, Net | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is comprised of unrealized gains and losses on investments classified as AFS, net of deferred taxes. The following table summarizes the components of accumulated other comprehensive loss:
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Stock-Based Compensation |
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Stock-Based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based compensation | Stock-Based Compensation The Company awarded restricted stock units (RSUs) and performance share units (PSUs) to certain employees and non-employee Directors of the Company as follows:
(1)These RSUs were awarded to certain employees of the Company and vest 25% on March 15, 2024, May 15, 2024 and August 15, 2024, as applicable, and each of the subsequent three anniversaries of those dates. (2)These PSUs were awarded to certain employees of the Company and have a performance period of three years. The PSU awards are subject to certain performance goals with payouts that range from 0% to 250% of the target awards. The value shown in the table represents the aggregate number of PSUs awarded at the target level. (3)These RSUs were awarded to non-employee directors of the Company and vest in full on May 25, 2024. Employees who are awarded RSUs and PSUs are entitled to receive dividend equivalents for eligible awards, payable in cash, when and if, the underlying award vests and becomes payable. If the underlying award does not vest or is forfeited, dividend equivalents with respect to the underlying award fail to become payable and are forfeited. RSUs and PSUs are subject to accelerated vesting in certain circumstances, including but not limited to: death, disability, retirement, or in connection with a change of control of the Company. There were 23,500 stock options exercised during the nine months ended September 30, 2023 and there were 41,665 stock options exercised during the nine months ended September 30, 2022, and the year ended December 31, 2022. As of September 30, 2023, the Company no longer had any stock options outstanding. As of September 30, 2023, the Company had 278,526 RSUs, and 203,173 PSUs (based on the target achievement for the PSUs awarded) outstanding.
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Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Common Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilutive impact of all common stock equivalents on earnings per share. Diluted earnings per share includes common shares assumed issued under the “treasury stock method,” which reflects the potential dilution that would occur if outstanding RSUs and PSUs vested and stock options were to be exercised. Employees who are awarded RSUs and PSUs are entitled to receive dividend equivalents for eligible awards, payable in cash, when and if, the underlying award vests and becomes payable. Therefore, these awards are not considered participating securities for the purposes of determining earnings per share. The following table presents the net income and the weighted average number of shares outstanding used in the earnings per common share calculations.
Diluted earnings per share excludes outstanding potential dilutive shares in periods where the inclusion of such securities would be anti-dilutive under the treasury stock methodology. During the three and nine months ended September 30, 2023, 12,328 and 29,860 potential dilutive shares, respectively, were excluded from the Company's diluted earnings per share computations because they were determined to be anti-dilutive. During the three and nine months ended September 30, 2022, no potential dilutive shares were excluded from the Company's diluted earnings per share computations because none were determined to be anti-dilutive. No outstanding PSUs and RSUs are considered in the Company’s diluted earnings per share computations in any period that involves a net loss because their inclusion would be anti-dilutive.
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Segment Reporting |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | Segment Reporting The Company has determined that it has two reportable segments: Employers and Cerity. Each of these segments represents a separate and distinct underwriting platform through which the Company conducts insurance business. The nature and composition of each reportable segment and its Corporate and Other activities are as follows: The Employers segment represents the traditional business offered through the EMPLOYERS brand name (Employers) through its agents, including business originated from its strategic partnerships and alliances. The Cerity segment represents the business offered under the Cerity brand name, which includes the Company's direct-to-customer business. Corporate and Other activities consist of EHI expenses (which are not considered to be underwriting in nature), the financial impact of the LPT agreement (which is recorded as a reduction to Losses and loss adjustment expenses) and legacy business assumed and ceded by CIC. These expenses are not considered to be part of a reportable segment and are not otherwise allocated to a reportable segment. The Company has determined that it is not practicable to report identifiable assets by segment since certain assets are used interchangeably among the segments. The following table summarizes the Company's written premium and components of net income (loss) before income taxes by reportable segment.
Entity-Wide Disclosures The Company operates solely within the U.S. and does not have revenue from transactions with a single policyholder accounting for 10% or more of its revenues. In-force premiums represent the estimated annual premium on all policies that are active and in-force on such date. More specifically, in-force premiums include policy endorsements but exclude estimated final audit premiums. When adjusting for estimated final audit premium, our total in-force premiums were $722.1 million, $665.0 million, $649.1 million, and $613.7 million as of September 30, 2023, December 31, 2022, September 30, 2022, and December 31, 2021, respectively. The Company's management focuses on in-force premium because it represents premium that is available for renewal in the future. The following table shows our in-force premiums, in-force premiums including estimated final audit premium, and number of policies in-force for each of our largest states and all other states combined for the periods presented:
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Pay vs Performance Disclosure | ||||
Net income | $ 14.0 | $ 19.1 | $ 72.5 | $ 1.3 |
Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Item 5. Other Information Rule 10b5-1 Trading Plans During the three months ended September 30, 2023, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each such term is defined in Item 408(a) of Regulation S-K.
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Valuation of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated fair value of financial instruments table | The carrying value and the estimated fair value of the Company’s financial instruments at fair value were as follows:
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Fair value, assets and liabilities measured on recurring basis table | The following table presents the Company’s investments at fair value and the corresponding fair value measurements.
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Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Table Text Block] | Financial Instruments Carried at Net Asset Value The Company has investments in private equity limited partnership interests that are included in Other invested assets on the Company’s Consolidated Balance Sheets. These investments do not have readily determinable fair values and are carried at net asset value (NAV) and therefore are excluded from the fair value hierarchy. The Company initially estimates the value of these investments using the transaction price. In subsequent periods, the Company measures these investments using NAV per share provided quarterly by the general partner, based on financial statements that are audited annually. These investments are generally not redeemable by the investees and cannot be sold without approval of the general partner. These investments have fund terms of 3 to 12 years, subject to two or three -year extensions at the general partner’s discretion. The Company will receive distributions of proceeds from dividends and interest from fund investments, as well as from the disposition of a fund investment, or portion thereof. The Company expects these distributions from time-to-time during the full course of the fund term. As of September 30, 2023, the Company had unfunded commitments to these private equity limited partnerships totaling $28.6 million. Additionally, certain cash equivalents, principally money market securities, are measured using NAV, which approximates fair value. The following table presents cash and investments carried at NAV on the Company’s Consolidated Balance Sheets.
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a reconciliation of the beginning and ending balances that are measured using Level 3 inputs for the nine months ended September 30, 2023.
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Investments (Tables) |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities, Available-for-sale | The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the Company’s available-for-sale (AFS) investments were as follows:
(1)Other securities within fixed maturity securities consist of bank loans, which are classified as AFS and reported at fair value.
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Equity securities table | The cost and estimated fair value of the Company’s equity securities recorded at fair value at September 30, 2023 and December 31, 2022 were as follows:
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Other invested assets | The Company had Other invested assets totaling $90.9 million and $59.7 million (initial cost of $81.1 million and $54.4 million) at September 30, 2023 and December 31, 2022, respectively, consisting of private equity limited partnerships, which are carried at NAV based on information provided by the general partner. These investments are non-redeemable until conversion and are periodically evaluated by the Company for impairment based on the ultimate recovery of the investment. Changes in the value of these investments are recorded through Net realized and unrealized gains and losses on the Company’s Consolidated Statements of Comprehensive Income (Loss). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments classified by contractual maturity date table | The amortized cost and estimated fair value of the Company’s fixed maturity securities at September 30, 2023, by contractual maturity, are shown below. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Unrealized loss on investments table | The following is a summary of AFS investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or greater in each case as of September 30, 2023 and December 31, 2022.
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Unrealized gain (loss) on investments | Net realized gains and losses on investments and the change in unrealized gains and losses on the Company’s investments recorded at fair value are determined on a specific-identification basis and were as follows:
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Investment income table | Net investment income was as follows:
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Current Expected Credit Losses (Tables) |
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Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premium Receivable, Allowance for Credit Loss [Table Text Block] | The table below shows the changes in CECL on premiums receivable.
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Reinsurance Recoverable, Allowance for Credit Loss [Table Text Block] | The table below shows the changes in CECL on reinsurance recoverables.
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Debt Securities, Available-for-sale, Allowance for Credit Loss [Table Text Block] | The table below shows the changes in the allowance for CECL on available-for-sale securities.
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Property and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment [Table Text Block] | Property and equipment consists of the following:
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Lease, Cost [Table Text Block] | Components of lease expense were as follows:
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Lessee, Operating and Finance Lease Liability Maturity [Table Text Block] | Maturities of lease liabilities were as follows:
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Supplemental Balance Sheet Information related to Leases [Table Text Block] | Supplemental balance sheet information related to leases was as follows:
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Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Supplemental cash flow information related to leases was as follows:
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Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Unpaid Losses and Loss Adjustment Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the liability for unpaid losses and LAE table | The following table represents a reconciliation of changes in the liability for unpaid losses and LAE.
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Accumulated Other Comprehensive Income (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive income (loss) table | The following table summarizes the components of accumulated other comprehensive loss:
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Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation arrangements by share-based payment award table | The Company awarded restricted stock units (RSUs) and performance share units (PSUs) to certain employees and non-employee Directors of the Company as follows:
(1)These RSUs were awarded to certain employees of the Company and vest 25% on March 15, 2024, May 15, 2024 and August 15, 2024, as applicable, and each of the subsequent three anniversaries of those dates. (2)These PSUs were awarded to certain employees of the Company and have a performance period of three years. The PSU awards are subject to certain performance goals with payouts that range from 0% to 250% of the target awards. The value shown in the table represents the aggregate number of PSUs awarded at the target level. (3)These RSUs were awarded to non-employee directors of the Company and vest in full on May 25, 2024.
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income and weighted average common shares outstanding used in earnings per share calculations table | The following table presents the net income and the weighted average number of shares outstanding used in the earnings per common share calculations.
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Diluted earnings per share excludes outstanding potential dilutive shares in periods where the inclusion of such securities would be anti-dilutive under the treasury stock methodology. During the three and nine months ended September 30, 2023, 12,328 and 29,860 potential dilutive shares, respectively, were excluded from the Company's diluted earnings per share computations because they were determined to be anti-dilutive. During the three and nine months ended September 30, 2022, no potential dilutive shares were excluded from the Company's diluted earnings per share computations because none were determined to be anti-dilutive. No outstanding PSUs and RSUs are considered in the Company’s diluted earnings per share computations in any period that involves a net loss because their inclusion would be anti-dilutive.
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Segment Reporting (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income before income taxes by segment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] |
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Revenue from External Customers by Geographic Areas [Table Text Block] |
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Basis of Presentation (Details) |
9 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Reportable Segments | 2 |
Reinsurance Quota Share, Percentage | 100.00% |
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
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Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments at fair value | $ 2,237.0 | $ 2,502.4 |
Total Investments at fair value, estimated fair value | 2,237.0 | 2,502.4 |
Cash and cash equivalents | 108.8 | 89.2 |
Cash and cash equivalents, estimated fair value | 108.8 | 89.2 |
Restricted Cash and Cash Equivalents | 0.2 | 0.2 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted Cash and Cash Equivalents | $ 0.2 | $ 0.2 |
Fair Value Measures nd Disclosures on recurring basis, unobservable inputs (Details) - USD ($) $ in Millions |
9 Months Ended | |
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Sep. 30, 2023 |
Dec. 31, 2022 |
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Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | $ 8.7 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | (0.6) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 32.3 | $ 24.2 |
Investments Equity Securities (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
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Schedule of Equity Securities and Other [Line Items] | ||
Equity Securities, FV-NI, Cost | $ 126.3 | $ 144.2 |
Equity Securities, FV-NI | 193.0 | 197.0 |
Industrial and Miscellaneous [Member] | ||
Schedule of Equity Securities and Other [Line Items] | ||
Equity Securities, FV-NI, Cost | 104.4 | 115.3 |
Equity Securities, FV-NI | 166.6 | 165.3 |
Other [Member] | ||
Schedule of Equity Securities and Other [Line Items] | ||
Equity Securities, FV-NI, Cost | 21.9 | 28.9 |
Equity Securities, FV-NI | $ 26.4 | $ 31.7 |
Investments Other Invested Assets (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
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Other Invest Assets [Abstract] | ||
Other invested assets at NAV | $ 90.9 | $ 59.7 |
Investment Owned, at Cost | 81.1 | 54.4 |
Total other invested assets | $ 90.9 | $ 59.7 |
Investments, Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
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Amortized Cost | ||
Due in one year or less, amortized cost | $ 87.3 | |
Due after one year through five years, amortized cost | 716.0 | |
Due after five years through ten years, amortized cost | 601.0 | |
Due after ten years, amortized cost | 87.1 | |
Mortgage and asset-backed securities, amortized cost | 707.2 | |
Debt securities, available-for-sale, amortized cost | 2,198.6 | $ 2,366.7 |
Estimated Fair Value | ||
Due in one year or less, fair value | 85.9 | |
Due after one year through five years, fair value | 677.7 | |
Due after five years through ten years, fair value | 527.0 | |
Due after ten years, fair value | 73.1 | |
Mortgage and asset-backed securities, fair value | 633.5 | |
Total, fair value | $ 1,997.2 | $ 2,186.3 |
Investments Investments, Held in Trust or on Deposit (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Line of Credit Facility [Line Items] | ||
Other invested assets (cost $81.1 at September 30, 2023 and $54.4 at December 31, 2022) | $ 90.9 | $ 59.7 |
Deposit Assets [Abstract] | ||
Investments | 2,333.9 | 2,568.8 |
Assets Held-in-trust [Abstract] | ||
Funds Held under Reinsurance Agreements, Asset | 2.7 | 2.7 |
Federal Home Loan Bank [Member] | ||
Deposit Assets [Abstract] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 70.0 | 70.0 |
Required by various state laws and regulations to hold securities or letters of credit in depository account [Member] | ||
Deposit Assets [Abstract] | ||
Investments | $ 714.1 | $ 745.9 |
Property and Equipment Leases (Details) |
Sep. 30, 2023 |
---|---|
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, remaining lease term | 1 year |
Lessee, Finance Lease, Term of Contract | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, remaining lease term | 5 years |
Lessee, operating lease, renewal term | 5 years |
Property and Equipment Leases, Components of Lease Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Components of Lease Expense [Abstract] | ||||
Operating lease expense | $ 0.2 | $ 0.9 | $ 1.3 | $ 2.6 |
Finance lease expense | 0.0 | 0.1 | 0.1 | 0.1 |
Total lease expense | $ 0.2 | $ 1.0 | $ 1.4 | $ 2.7 |
Property and Equipment Leases, Supplement Balance Sheet Information (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | $ 4.3 | $ 11.5 |
Operating lease liability | 5.1 | 13.6 |
Property and equipment, gross | 48.0 | 56.7 |
Accumulated depreciation, depletion and amortization, property and equipment | (41.0) | (44.7) |
Property and equipment, net | 7.0 | 12.0 |
Other liabilities | 58.3 | 57.1 |
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, before Accumulated Depreciation and Amortization | 0.7 | 0.8 |
Finance Lease, Right-of-Use Asset, Accumulated Amortization | 0.4 | 0.4 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 0.3 | 0.4 |
Finance lease, liability | $ 0.2 | $ 0.4 |
Property and Equipment Leases, Supplemental Cash Flow Information (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Leases, Supplement Balance Sheet Information [Abstract] | ||
Operating cash flows from operating leases | $ 1.3 | $ 2.5 |
Financing cash flows from finance leases | $ 0.2 | $ 0.1 |
Exit and Disposal Cost (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Property, Plant and Equipment [Abstract] | ||
Business Exit Costs | $ 7.6 | |
Asset Impairment Charges | 2.6 | $ 0.0 |
Other General Expense | 0.2 | |
Gain (Loss) on Termination of Lease | $ 1.0 | $ 0.0 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||||
Income tax expense (benefit) | $ 3.4 | $ 4.7 | $ 17.8 | $ (1.4) |
Effective tax rate | 19.50% | 19.70% | 19.70% |
LPT Agreement (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Reinsurance Agreement [Line Items] | |||||
Liabilities for the incurred but unpaid losses and LAE related to claims prior to July 1, 1995 | $ 1,500.0 | $ 1,500.0 | |||
Ceded premiums written | 775.0 | ||||
Amortization of deferred gain | 1.9 | $ 2.1 | 5.9 | $ 6.3 | |
Net income | 14.0 | 19.1 | 72.5 | 1.3 | |
Deferred reinsurance gain—LPT Agreement | 100.2 | 100.2 | $ 106.1 | ||
Estimated remaining liabilities - LPT Agreement | 294.4 | 294.4 | 308.6 | ||
Paid losses and LAE claims related to LPT | 873.0 | 873.0 | $ 858.9 | ||
Impact of the LPT Agreement | 1.9 | $ 2.1 | 5.9 | $ 6.3 | |
Indemnification Agreement [Member] | |||||
Reinsurance Agreement [Line Items] | |||||
Coverage provided under LPT Agreement | $ 2,000.0 | $ 2,000.0 |
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Accumulated Other Comprehensive Income [Abstract] | ||
Net unrealized losses on investments, before taxes | $ (198.2) | $ (175.8) |
Deferred tax benefit on net unrealized losses | 41.6 | 36.9 |
Total accumulated other comprehensive loss | $ (156.6) | $ (138.9) |
Earnings Per Share (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Net income available to stockholders - basic and diluted | $ 14.0 | $ 19.1 | $ 72.5 | $ 1.3 |
Weighted average number of shares outstanding - basic | 25,981,984 | 27,312,409 | 26,612,443 | 27,504,566 |
Effect of dilutive securities: | ||||
Dilutive securities | 136,296 | 124,019 | 154,613 | 177,100 |
Weighted average number of shares outstanding - diluted | 26,118,280 | 27,436,428 | 26,767,056 | 27,681,666 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 12,328 | 0 | 29,860 | 0 |
Performance Shares [Member] | ||||
Effect of dilutive securities: | ||||
Dilutive securities | 104,549 | 97,343 | 110,495 | 132,760 |
Stock Option [Member] | ||||
Effect of dilutive securities: | ||||
Dilutive securities | 0 | 6,901 | 2,762 | 12,449 |
Restricted Stock Units (RSUs) [Member] | ||||
Effect of dilutive securities: | ||||
Dilutive securities | 31,747 | 19,775 | 41,356 | 31,891 |
Segment Reporting Segment Net Income Before Taxes (Details) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2022
USD ($)
|
|
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | 2 | |||
Premiums Written, Gross | $ 196.2 | $ 188.6 | $ 589.5 | $ 540.4 |
Premiums Written, Net | 194.5 | 186.8 | 584.2 | 535.3 |
Net premiums earned | 184.6 | 178.7 | 534.4 | 494.1 |
Net investment income | 25.9 | 23.7 | 80.3 | 62.8 |
Net realized and unrealized (losses) gains on investments | (7.1) | 1.9 | 10.7 | (65.5) |
Other income (loss) | 0.1 | 0.1 | (0.2) | 0.3 |
Revenues | (203.5) | (204.4) | (625.2) | (491.7) |
Losses and loss adjustment expenses | 114.9 | 112.3 | 312.8 | 299.7 |
Commission expense | 26.7 | 25.3 | 73.8 | 69.9 |
Underwriting and general and administrative expenses | 43.5 | 41.9 | 133.7 | 120.6 |
Interest and financing expenses | 1.0 | 1.1 | 5.2 | 1.6 |
Other Expenses | 0.0 | 0.0 | 9.4 | 0.0 |
Operating Expenses | 186.1 | 180.6 | 534.9 | 491.8 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 17.4 | 23.8 | 90.3 | (0.1) |
Employers Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Premiums Written, Gross | 194.0 | 187.1 | 584.4 | 536.8 |
Premiums Written, Net | 192.3 | 185.3 | 579.1 | 531.7 |
Net premiums earned | 182.7 | 177.9 | 529.5 | 492.1 |
Net investment income | 23.4 | 21.4 | 72.3 | 57.7 |
Net realized and unrealized (losses) gains on investments | (5.9) | 2.4 | 11.1 | (56.0) |
Other income (loss) | 0.1 | 0.1 | (0.2) | 0.3 |
Revenues | (200.3) | (201.8) | (612.7) | (494.1) |
Losses and loss adjustment expenses | 115.5 | 113.8 | 315.5 | 304.7 |
Commission expense | 26.6 | 25.2 | 73.6 | 69.8 |
Underwriting and general and administrative expenses | 36.5 | 35.7 | 111.8 | 101.8 |
Interest and financing expenses | 0.9 | 1.0 | 4.9 | 1.3 |
Other Expenses | 9.4 | |||
Operating Expenses | 179.5 | 175.7 | 515.2 | 477.6 |
Net (loss) income before income taxes | 20.8 | 26.1 | 97.5 | 16.5 |
Cerity Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Premiums Written, Gross | 2.2 | 1.5 | 5.1 | 3.6 |
Premiums Written, Net | 2.2 | 1.5 | 5.1 | 3.6 |
Net premiums earned | 1.9 | 0.8 | 4.9 | 2.0 |
Net investment income | 1.6 | 1.2 | 5.0 | 2.7 |
Net realized and unrealized (losses) gains on investments | (0.4) | (0.3) | (0.2) | (1.6) |
Other income (loss) | 0.0 | 0.0 | 0.0 | 0.0 |
Revenues | (3.1) | (1.7) | (9.7) | (3.1) |
Losses and loss adjustment expenses | 1.3 | 0.6 | 3.2 | 1.3 |
Commission expense | 0.1 | 0.1 | 0.2 | 0.1 |
Underwriting and general and administrative expenses | 3.6 | 3.4 | 12.0 | 9.9 |
Interest and financing expenses | 0.0 | 0.0 | 0.0 | 0.0 |
Other Expenses | 0.0 | |||
Operating Expenses | 5.0 | 4.1 | 15.4 | 11.3 |
Net (loss) income before income taxes | (1.9) | (2.4) | (5.7) | (8.2) |
Corporate Segment | ||||
Segment Reporting Information [Line Items] | ||||
Premiums Written, Gross | 0.0 | 0.0 | 0.0 | 0.0 |
Premiums Written, Net | 0.0 | 0.0 | 0.0 | 0.0 |
Net premiums earned | 0.0 | 0.0 | 0.0 | 0.0 |
Net investment income | 0.9 | 1.1 | 3.0 | 2.4 |
Net realized and unrealized (losses) gains on investments | (0.8) | (0.2) | (0.2) | (7.9) |
Other income (loss) | 0.0 | 0.0 | 0.0 | 0.0 |
Revenues | (0.1) | 0.9 | (2.8) | 5.5 |
Losses and loss adjustment expenses | (1.9) | (2.1) | (5.9) | (6.3) |
Commission expense | 0.0 | 0.0 | 0.0 | 0.0 |
Underwriting and general and administrative expenses | 3.4 | 2.8 | 9.9 | 8.9 |
Interest and financing expenses | 0.1 | 0.1 | 0.3 | 0.3 |
Other Expenses | 0.0 | |||
Operating Expenses | 1.6 | 0.8 | 4.3 | 2.9 |
Net (loss) income before income taxes | $ (1.5) | $ 0.1 | $ (1.5) | $ (8.4) |
Segment Reporting Geographic Information (Details) $ in Millions |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
Sep. 30, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Revenue, Major Customer [Line Items] | ||||
Segment Reporting, Disclosure of Major Customers | 10 | |||
CALIFORNIA | ||||
Revenue, Major Customer [Line Items] | ||||
Premiums In Force | $ 301.9 | $ 279.7 | $ 272.9 | $ 258.4 |
Policies In force | 43,272 | 42,876 | 42,934 | 40,704 |
FLORIDA | ||||
Revenue, Major Customer [Line Items] | ||||
Premiums In Force | $ 55.4 | $ 49.4 | $ 46.8 | $ 41.1 |
Policies In force | 10,052 | 9,417 | 9,034 | 7,989 |
NEW YORK | ||||
Revenue, Major Customer [Line Items] | ||||
Premiums In Force | $ 31.1 | $ 27.3 | $ 26.4 | $ 24.5 |
Policies In force | 7,570 | 7,497 | 7,577 | 7,307 |
AllOtherStates [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Premiums In Force | $ 287.6 | $ 266.1 | $ 260.8 | $ 247.4 |
Policies In force | 65,226 | 61,566 | 60,602 | 55,350 |
UNITED STATES | ||||
Revenue, Major Customer [Line Items] | ||||
Premiums In Force | $ 676.0 | $ 622.5 | $ 606.9 | $ 571.4 |
Policies In force | 126,120 | 121,356 | 120,147 | 111,350 |
Final audit policies in-force | 0 | 0 | 0 | 0 |
Final audit premium | $ 46.1 | $ 42.5 | $ 42.2 | $ 42.3 |
Total in-force policies, includingfinal audit | 126,120 | 121,356 | 120,147 | 111,350 |
Total in-force, including final audit premium | $ 722.1 | $ 665.0 | $ 649.1 | $ 613.7 |