x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Bermuda (State or other jurisdiction of incorporation or organization) | 98-0570192 (IRS Employer Identification No.) |
94 Pitts Bay Road, Pembroke, Bermuda (Address of principal executive offices) | HM08 (Zip Code) |
Large accelerated filer x | Accelerated filer o | |
Non-accelerated filer o | (Do not check if a smaller reporting company) | |
Smaller reporting company o | ||
Emerging growth company o | ||
INDEX | ||
Page | ||
PART I - Financial Information | ||
Condensed Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017 (unaudited) | ||
Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2018 and 2017 (unaudited) | ||
Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2018 and 2017 (unaudited) | ||
Condensed Consolidated Statements of Changes in Shareholders' Equity for the Nine Months Ended September 30, 2018 and 2017 (unaudited) | ||
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2018 and 2017 (unaudited) | ||
PART II - Other Information | ||
September 30, 2018 | December 31, 2017 | |||||||
ASSETS | ||||||||
Investments: | ||||||||
Fixed maturities, available-for-sale, at fair value (amortized cost 2018: $2,867,251; 2017: $2,699,297) | $ | $ | ||||||
Fixed maturities, held-to-maturity, at amortized cost (fair value 2018: $1,019,741; 2017: $1,125,626) | ||||||||
Other investments, at fair value | ||||||||
Total investments | ||||||||
Cash and cash equivalents | ||||||||
Restricted cash and cash equivalents | ||||||||
Accrued investment income | ||||||||
Reinsurance balances receivable, net (includes $125,046 and $94,597 from related parties in 2018 and 2017, respectively) | ||||||||
Loan to related party | ||||||||
Deferred commission and other acquisition expenses (includes $396,799 and $379,395 from related parties in 2018 and 2017, respectively) | ||||||||
Other assets | ||||||||
Assets held for sale | ||||||||
Total assets | $ | $ | ||||||
LIABILITIES | ||||||||
Reserve for loss and loss adjustment expenses (includes $2,749,601 and $2,337,096 from related parties in 2018 and 2017, respectively) | $ | $ | ||||||
Unearned premiums (includes $1,223,736 and $1,170,397 from related parties in 2018 and 2017, respectively) | ||||||||
Accrued expenses and other liabilities | ||||||||
Senior notes - principal amount | ||||||||
Less: unamortized debt issuance costs | ||||||||
Senior notes, net | ||||||||
Liabilities held for sale | ||||||||
Total liabilities | ||||||||
Commitments and Contingencies | ||||||||
EQUITY | ||||||||
Preference shares | ||||||||
Common shares ($0.01 par value; 87,932,287 and 87,730,054 shares issued in 2018 and 2017, respectively; 82,942,737 and 82,974,895 shares outstanding in 2018 and 2017, respectively) | ||||||||
Additional paid-in capital | ||||||||
Accumulated other comprehensive (loss) income | ( | ) | ||||||
(Accumulated deficit) retained earnings | ( | ) | ||||||
Treasury shares, at cost (4,989,550 and 4,755,159 shares in 2018 and 2017, respectively) | ( | ) | ( | ) | ||||
Total Maiden shareholders’ equity | ||||||||
Noncontrolling interests in subsidiaries | ||||||||
Total equity | ||||||||
Total liabilities and equity | $ | $ | ||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenues | ||||||||||||||||
Gross premiums written | $ | $ | $ | $ | ||||||||||||
Net premiums written | $ | $ | $ | $ | ||||||||||||
Change in unearned premiums | ( | ) | ( | ) | ||||||||||||
Net premiums earned | ||||||||||||||||
Other insurance revenue | ||||||||||||||||
Net investment income | ||||||||||||||||
Net realized (losses) gains on investment | ( | ) | ( | ) | ||||||||||||
Total other-than-temporary impairment losses | ( | ) | ( | ) | ||||||||||||
Total revenues | ||||||||||||||||
Expenses | ||||||||||||||||
Net loss and loss adjustment expenses | ||||||||||||||||
Commission and other acquisition expenses | ||||||||||||||||
General and administrative expenses | ||||||||||||||||
Interest and amortization expenses | ||||||||||||||||
Accelerated amortization of senior note issuance cost | ||||||||||||||||
Foreign exchange losses (gains) | ( | ) | ||||||||||||||
Total expenses | ||||||||||||||||
Loss from continuing operations before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Less: income tax (benefit) expense | ( | ) | ( | ) | ( | ) | ||||||||||
Net loss from continuing operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Loss from discontinued operations, net of income tax | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Add: net (income) loss from continuing operations attributable to noncontrolling interests | ( | ) | ( | ) | ||||||||||||
Net loss attributable to Maiden | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Dividends on preference shares | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net loss attributable to Maiden common shareholders | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Basic and diluted loss from continuing operations per share attributable to Maiden common shareholders | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Basic and diluted loss from discontinued operations per share attributable to Maiden common shareholders | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Basic and diluted loss per share attributable to Maiden common shareholders | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Dividends declared per common share | $ | $ | $ | $ | ||||||||||||
Weighted average number of common shares - basic and diluted | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Other comprehensive (loss) income | ||||||||||||||||
Net unrealized holdings (losses) gains on available-for-sale fixed maturities arising during the period | ( | ) | ( | ) | ||||||||||||
Adjustment for reclassification of net realized losses (gains) recognized in net income | ( | ) | ||||||||||||||
Foreign currency translation adjustment | ( | ) | ( | ) | ||||||||||||
Other comprehensive (loss) income, before tax | ( | ) | ( | ) | ||||||||||||
Income tax benefit (expense) related to components of other comprehensive income | ( | ) | ||||||||||||||
Other comprehensive (loss) income, after tax | ( | ) | ( | ) | ||||||||||||
Comprehensive loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net (income) loss attributable to noncontrolling interests | ( | ) | ( | ) | ||||||||||||
Other comprehensive loss (income) attributable to noncontrolling interests | ( | ) | ( | ) | ||||||||||||
Comprehensive (income) loss attributable to noncontrolling interests | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Comprehensive loss attributable to Maiden | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
For the Nine Months Ended September 30, | 2018 | 2017 | ||||||
Preference shares - Series A, C and D | ||||||||
Beginning balance | $ | $ | ||||||
Issuance of Preference Shares – Series D | ||||||||
Ending balance | ||||||||
Common shares | ||||||||
Beginning balance | ||||||||
Exercise of options and issuance of shares | ||||||||
Ending balance | ||||||||
Additional paid-in capital | ||||||||
Beginning balance | ||||||||
Exercise of options and issuance of common shares | ||||||||
Share-based compensation expense | ||||||||
Issuance costs of Preference Shares - Series D | ( | ) | ||||||
Ending balance | ||||||||
Accumulated other comprehensive (loss) income | ||||||||
Beginning balance | ||||||||
Change in net unrealized (losses) gains on investment | ( | ) | ||||||
Foreign currency translation adjustment | ( | ) | ||||||
Ending balance | ( | ) | ||||||
(Accumulated deficit) retained earnings | ||||||||
Beginning balance | ||||||||
Net loss attributable to Maiden | ( | ) | ( | ) | ||||
Dividends on preference shares | ( | ) | ( | ) | ||||
Dividends on common shares | ( | ) | ( | ) | ||||
Ending balance | ( | ) | ||||||
Treasury shares | ||||||||
Beginning balance | ( | ) | ( | ) | ||||
Shares repurchased | ( | ) | ( | ) | ||||
Ending balance | ( | ) | ( | ) | ||||
Noncontrolling interests in subsidiaries | ||||||||
Beginning balance | ||||||||
Net income (loss) attributable to noncontrolling interests | ( | ) | ||||||
Foreign currency translation adjustment | ( | ) | ||||||
Ending balance | ||||||||
Total equity | $ | $ | ||||||
For the Nine Months Ended September 30, | 2018 | 2017 | ||||||
Cash flows from operating activities | ||||||||
Net loss | $ | ( | ) | $ | ( | ) | ||
Less: net loss from discontinued operations | ||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation, amortization and share-based compensation | ||||||||
Net realized losses (gains) on investment | ( | ) | ||||||
Total other-than-temporary impairment losses | ||||||||
Foreign exchange (gains) losses | ( | ) | ||||||
Changes in assets – (increase) decrease: | ||||||||
Reinsurance balances receivable, net | ( | ) | ( | ) | ||||
Accrued investment income | ( | ) | ||||||
Deferred commission and other acquisition expenses | ( | ) | ( | ) | ||||
Other assets | ( | ) | ||||||
Changes in liabilities – increase (decrease): | ||||||||
Reserve for loss and loss adjustment expenses | ||||||||
Unearned premiums | ||||||||
Accrued expenses and other liabilities | ( | ) | ||||||
Net cash provided by continuing operations | ||||||||
Net cash (used in) provided by discontinued operations | ( | ) | ||||||
Net cash provided by operating activities | ||||||||
Cash flows from investing activities: | ||||||||
Purchases of fixed-maturities – available-for-sale | ( | ) | ( | ) | ||||
Purchases of other investments | ( | ) | ( | ) | ||||
Proceeds from sales of fixed-maturities – available-for-sale | ||||||||
Proceeds from maturities, paydowns and calls of fixed maturities – available-for-sale | ||||||||
Proceeds from maturities and calls of fixed maturities – held to maturity | ||||||||
Proceeds from sale and redemption of other investments | ||||||||
Other, net | ( | ) | ( | ) | ||||
Net cash used in investing activities for continuing operations | ( | ) | ( | ) | ||||
Net cash provided by (used in) investing activities for discontinued operations | ( | ) | ||||||
Net cash provided by (used in) investing activities | ( | ) | ||||||
Cash flows from financing activities: | ||||||||
Repurchase of common shares, net of issuance | ( | ) | ( | ) | ||||
Dividends paid – Maiden common shareholders | ( | ) | ( | ) | ||||
Dividends paid – preference shares | ( | ) | ( | ) | ||||
Preference shares, net of issuance costs | ||||||||
Redemption of 2012 senior notes | ( | ) | ||||||
Net cash used in financing activities | ( | ) | ( | ) | ||||
Effect of exchange rate changes on foreign currency cash and cash equivalents | ( | ) | ||||||
Net increase in cash and cash equivalents and restricted cash and cash equivalents | ||||||||
Cash and cash equivalents and restricted cash and cash equivalents, beginning of period | ||||||||
Cash and cash equivalents and restricted cash and cash equivalents, end of period | ||||||||
Less: cash and cash equivalents and restricted cash and cash equivalents of discontinued operations, end of period | ( | ) | ( | ) | ||||
Cash and cash equivalents and restricted cash and cash equivalents of continuing operations, end of period | $ | $ | ||||||
Reconciliation of cash and cash equivalents, and restricted cash and cash equivalents reported within Condensed Consolidated Balance Sheets that sum to the total shown above: | ||||||||
Cash and cash equivalents, end of period | $ | $ | ||||||
Restricted cash and cash equivalents, end of period | ||||||||
Total cash and cash equivalents and restricted cash and cash equivalents, end of period | $ | $ | ||||||
For the Three Months Ended September 30, 2018 | Diversified Reinsurance | AmTrust Reinsurance | Other | Total | ||||||||||||
Gross premiums written | $ | $ | $ | $ | ||||||||||||
Net premiums written | $ | $ | $ | $ | ||||||||||||
Net premiums earned | $ | $ | $ | $ | ||||||||||||
Other insurance revenue | ||||||||||||||||
Net loss and loss adjustment expenses ("loss and LAE") | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Commission and other acquisition expenses | ( | ) | ( | ) | ( | ) | ||||||||||
General and administrative expenses | ( | ) | ( | ) | ( | ) | ||||||||||
Underwriting loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | ( | ) | |||||
Reconciliation to net loss from continuing operations | ||||||||||||||||
Net investment income and realized losses on investment | ||||||||||||||||
Total other-than-temporary impairment losses | ( | ) | ||||||||||||||
Interest and amortization expenses | ( | ) | ||||||||||||||
Foreign exchange losses | ( | ) | ||||||||||||||
Other general and administrative expenses | ( | ) | ||||||||||||||
Income tax benefit | ||||||||||||||||
Net loss from continuing operations | $ | ( | ) | |||||||||||||
Net loss and LAE ratio(1) | % | % | % | |||||||||||||
Commission and other acquisition expense ratio(2) | % | % | % | |||||||||||||
General and administrative expense ratio(3) | % | % | % | |||||||||||||
Expense ratio(4) | % | % | % | |||||||||||||
Combined ratio(5) | % | % | % | |||||||||||||
For the Three Months Ended September 30, 2017 | Diversified Reinsurance | AmTrust Reinsurance | Other | Total | ||||||||||||
Gross premiums written | $ | $ | $ | $ | ||||||||||||
Net premiums written | $ | $ | $ | $ | ||||||||||||
Net premiums earned | $ | $ | $ | $ | ||||||||||||
Other insurance revenue | ||||||||||||||||
Net loss and LAE | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Commission and other acquisition expenses | ( | ) | ( | ) | ( | ) | ||||||||||
General and administrative expenses | ( | ) | ( | ) | ( | ) | ||||||||||
Underwriting loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | ( | ) | |||||
Reconciliation to net loss from continuing operations | ||||||||||||||||
Net investment income and realized gains on investment | ||||||||||||||||
Interest and amortization expenses | ( | ) | ||||||||||||||
Foreign exchange losses | ( | ) | ||||||||||||||
Other general and administrative expenses | ( | ) | ||||||||||||||
Income tax expense | ( | ) | ||||||||||||||
Net loss from continuing operations | $ | ( | ) | |||||||||||||
Net loss and LAE ratio(1) | % | % | % | |||||||||||||
Commission and other acquisition expense ratio(2) | % | % | % | |||||||||||||
General and administrative expense ratio(3) | % | % | % | |||||||||||||
Expense ratio(4) | % | % | % | |||||||||||||
Combined ratio(5) | % | % | % | |||||||||||||
For the Nine Months Ended September 30, 2018 | Diversified Reinsurance | AmTrust Reinsurance | Other | Total | ||||||||||||
Gross premiums written | $ | $ | $ | $ | ||||||||||||
Net premiums written | $ | $ | $ | $ | ||||||||||||
Net premiums earned | $ | $ | $ | $ | ||||||||||||
Other insurance revenue | ||||||||||||||||
Net loss and LAE | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Commission and other acquisition expenses | ( | ) | ( | ) | ( | ) | ||||||||||
General and administrative expenses | ( | ) | ( | ) | ( | ) | ||||||||||
Underwriting loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | ( | ) | |||||
Reconciliation to net loss from continuing operations | ||||||||||||||||
Net investment income and realized losses on investment | ||||||||||||||||
Total other-than-temporary impairment losses | ( | ) | ||||||||||||||
Interest and amortization expenses | ( | ) | ||||||||||||||
Foreign exchange gains | ||||||||||||||||
Other general and administrative expenses | ( | ) | ||||||||||||||
Income tax benefit | ||||||||||||||||
Net loss from continuing operations | $ | ( | ) | |||||||||||||
Net loss and LAE ratio(1) | % | % | % | |||||||||||||
Commission and other acquisition expense ratio(2) | % | % | % | |||||||||||||
General and administrative expense ratio(3) | % | % | % | |||||||||||||
Expense ratio(4) | % | % | % | |||||||||||||
Combined ratio(5) | % | % | % | |||||||||||||
For the Nine Months Ended September 30, 2017 | Diversified Reinsurance | AmTrust Reinsurance | Other | Total | ||||||||||||
Gross premiums written | $ | $ | $ | $ | ||||||||||||
Net premiums written | $ | $ | $ | $ | ||||||||||||
Net premiums earned | $ | $ | $ | $ | ||||||||||||
Other insurance revenue | ||||||||||||||||
Net loss and LAE | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Commission and other acquisition expenses | ( | ) | ( | ) | ( | ) | ||||||||||
General and administrative expenses | ( | ) | ( | ) | ( | ) | ||||||||||
Underwriting loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | ( | ) | |||||
Reconciliation to net loss from continuing operations | ||||||||||||||||
Net investment income and realized gains on investment | ||||||||||||||||
Interest and amortization expenses | ( | ) | ||||||||||||||
Accelerated amortization of senior note issuance cost | ( | ) | ||||||||||||||
Foreign exchange losses | ( | ) | ||||||||||||||
Other general and administrative expenses | ( | ) | ||||||||||||||
Income tax benefit | ||||||||||||||||
Net loss from continuing operations | $ | ( | ) | |||||||||||||
Net loss and LAE ratio(1) | % | % | % | |||||||||||||
Commission and other acquisition expense ratio(2) | % | % | % | |||||||||||||
General and administrative expense ratio(3) | % | % | % | |||||||||||||
Expense ratio(4) | % | % | % | |||||||||||||
Combined ratio(5) | % | % | % | |||||||||||||
(1) | Calculated by dividing net loss and LAE by the sum of net premiums earned and other insurance revenue. |
(2) | Calculated by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue. |
(3) | Calculated by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue. |
(4) | Calculated by adding together the commission and other acquisition expense ratio and general and administrative expense ratio. |
(5) | Calculated by adding together net loss and LAE ratio and the expense ratio. |
September 30, 2018 | Diversified Reinsurance | AmTrust Reinsurance | Total | |||||||||
Total assets - reportable segments | $ | $ | $ | |||||||||
Corporate assets | ||||||||||||
Assets held for sale | ||||||||||||
Total Assets | $ | $ | $ | |||||||||
December 31, 2017 | Diversified Reinsurance | AmTrust Reinsurance | Total | |||||||||
Total assets - reportable segments | $ | $ | $ | |||||||||
Corporate assets | ||||||||||||
Assets held for sale | ||||||||||||
Total Assets | $ | $ | $ | |||||||||
For the Three Months Ended September 30, | 2018 | 2017 | ||||||||||||
Net premiums written | Total | % of Total | Total | % of Total | ||||||||||
Diversified Reinsurance | ||||||||||||||
International | $ | % | $ | % | ||||||||||
Casualty | % | ( | ) | % | ||||||||||
Total Diversified Reinsurance | % | % | ||||||||||||
AmTrust Reinsurance | ||||||||||||||
Small Commercial Business | % | % | ||||||||||||
Specialty Program | % | % | ||||||||||||
Specialty Risk and Extended Warranty | % | % | ||||||||||||
Total AmTrust Reinsurance | % | % | ||||||||||||
Total Net Premiums Written | $ | % | $ | % | ||||||||||
For the Nine Months Ended September 30, | 2018 | 2017 | ||||||||||||
Net premiums written | Total | % of Total | Total | % of Total | ||||||||||
Diversified Reinsurance | ||||||||||||||
International | $ | % | $ | % | ||||||||||
Casualty | % | ( | ) | % | ||||||||||
Total Diversified Reinsurance | % | % | ||||||||||||
AmTrust Reinsurance | ||||||||||||||
Small Commercial Business | % | % | ||||||||||||
Specialty Program | % | % | ||||||||||||
Specialty Risk and Extended Warranty | % | % | ||||||||||||
Total AmTrust Reinsurance | % | % | ||||||||||||
Total Net Premiums Written | $ | % | $ | % | ||||||||||
For the Three Months Ended September 30, | 2018 | 2017 | ||||||||||||
Net premiums earned | Total | % of Total | Total | % of Total | ||||||||||
Diversified Reinsurance | ||||||||||||||
International | $ | % | $ | % | ||||||||||
Casualty | % | ( | ) | % | ||||||||||
Total Diversified Reinsurance | % | % | ||||||||||||
AmTrust Reinsurance | ||||||||||||||
Small Commercial Business | % | % | ||||||||||||
Specialty Program | % | % | ||||||||||||
Specialty Risk and Extended Warranty | % | % | ||||||||||||
Total AmTrust Reinsurance | % | % | ||||||||||||
Total Net Premiums Earned | $ | % | $ | % | ||||||||||
For the Nine Months Ended September 30, | 2018 | 2017 | ||||||||||||
Net premiums earned | Total | % of Total | Total | % of Total | ||||||||||
Diversified Reinsurance | ||||||||||||||
International | $ | % | $ | % | ||||||||||
Casualty | % | ( | ) | % | ||||||||||
Total Diversified Reinsurance | % | % | ||||||||||||
AmTrust Reinsurance | ||||||||||||||
Small Commercial Business | % | % | ||||||||||||
Specialty Program | % | % | ||||||||||||
Specialty Risk and Extended Warranty | % | % | ||||||||||||
Total AmTrust Reinsurance | % | % | ||||||||||||
Total Net Premiums Earned | $ | % | $ | % | ||||||||||
a) | Fixed Maturities |
September 30, 2018 | Original or amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||
AFS fixed maturities: | ||||||||||||||||
U.S. treasury bonds | $ | $ | $ | ( | ) | $ | ||||||||||
U.S. agency bonds – mortgage-backed | ( | ) | ||||||||||||||
U.S. agency bonds – other | ( | ) | ||||||||||||||
Non-U.S. government and supranational bonds | ( | ) | ||||||||||||||
Asset-backed securities | ( | ) | ||||||||||||||
Corporate bonds | ( | ) | ||||||||||||||
Total AFS fixed maturities | ( | ) | ||||||||||||||
Held-to-maturity ("HTM") fixed maturities: | ||||||||||||||||
Corporate bonds | ( | ) | ||||||||||||||
Municipal bonds | ( | ) | ||||||||||||||
Total HTM fixed maturities | ( | ) | ||||||||||||||
Total fixed maturity investments | $ | $ | $ | ( | ) | $ | ||||||||||
December 31, 2017 | Original or amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||
AFS fixed maturities: | ||||||||||||||||
U.S. treasury bonds | $ | $ | $ | $ | ||||||||||||
U.S. agency bonds – mortgage-backed | ( | ) | ||||||||||||||
U.S. agency bonds – other | ( | ) | ||||||||||||||
Non-U.S. government and supranational bonds | ( | ) | ||||||||||||||
Asset-backed securities | ( | ) | ||||||||||||||
Corporate bonds | ( | ) | ||||||||||||||
Total AFS fixed maturities | ( | ) | ||||||||||||||
HTM fixed maturities: | ||||||||||||||||
Corporate bonds | ( | ) | ||||||||||||||
Municipal bonds | ( | ) | ||||||||||||||
Total HTM fixed maturities | ( | ) | ||||||||||||||
Total fixed maturity investments | $ | $ | $ | ( | ) | $ | ||||||||||
AFS fixed maturities | HTM fixed maturities | |||||||||||||||
September 30, 2018 | Amortized cost | Fair value | Amortized cost | Fair value | ||||||||||||
Maturity | ||||||||||||||||
Due in one year or less | $ | $ | $ | $ | ||||||||||||
Due after one year through five years | ||||||||||||||||
Due after five years through ten years | ||||||||||||||||
U.S. agency bonds – mortgage-backed | ||||||||||||||||
Asset-backed securities | ||||||||||||||||
Total fixed maturities | $ | $ | $ | $ | ||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
September 30, 2018 | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||
U.S. treasury bonds | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | ||||||||||||||
U.S. agency bonds – mortgage-backed | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
U.S. agency bonds – other | ( | ) | ( | ) | ||||||||||||||||||||
Non–U.S. government and supranational bonds | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Asset-backed securities | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Corporate bonds | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Municipal bonds | ( | ) | ( | ) | ||||||||||||||||||||
Total temporarily impaired fixed maturities | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
December 31, 2017 | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||
U.S. agency bonds – mortgage-backed | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||||||
U.S. agency bonds – other | ( | ) | ( | ) | ||||||||||||||||||||
Non-U.S. government and supranational bonds | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Asset-backed securities | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Corporate bonds | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Municipal bonds | ( | ) | ( | ) | ||||||||||||||||||||
Total temporarily impaired fixed maturities | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||||||
Ratings(1) at September 30, 2018 | Amortized cost | Fair value | % of Total fair value | ||||||||
U.S. treasury bonds | $ | $ | % | ||||||||
U.S. agency bonds | % | ||||||||||
AAA | % | ||||||||||
AA+, AA, AA- | % | ||||||||||
A+, A, A- | % | ||||||||||
BBB+, BBB, BBB- | % | ||||||||||
BB+ or lower | % | ||||||||||
Total fixed maturities | $ | $ | % | ||||||||
Ratings(1) at December 31, 2017 | Amortized cost | Fair value | % of Total fair value | ||||||||
U.S. treasury bonds | $ | $ | % | ||||||||
U.S. agency bonds | % | ||||||||||
AAA | % | ||||||||||
AA+, AA, AA- | % | ||||||||||
A+, A, A- | % | ||||||||||
BBB+, BBB, BBB- | % | ||||||||||
BB+ or lower | % | ||||||||||
Total fixed maturities | $ | $ | % | ||||||||
(1) |
b) | Other Investments |
September 30, 2018 | December 31, 2017 | |||||||||||||
Fair value | % of Total fair value | Fair value | % of Total fair value | |||||||||||
Investment in limited partnerships | $ | % | $ | % | ||||||||||
Other | % | % | ||||||||||||
Total other investments | $ | % | $ | % | ||||||||||
c) | Net Investment Income |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Fixed maturities | $ | $ | $ | $ | ||||||||||||
Cash and cash equivalents | ||||||||||||||||
Loan to related party | ||||||||||||||||
Other | ||||||||||||||||
Investment expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net investment income | $ | $ | $ | $ | ||||||||||||
d) | Realized Gains (Losses) on Investment |
For the Three Months Ended September 30, 2018 | Gross gains | Gross losses | Net | |||||||||
AFS fixed maturities | $ | $ | ( | ) | $ | ( | ) | |||||
Other investments | ||||||||||||
Net realized gains (losses) on investment | $ | $ | ( | ) | $ | ( | ) | |||||
For the Three Months Ended September 30, 2017 | Gross gains | Gross losses | Net | |||||||||
AFS fixed maturities | $ | $ | ( | ) | $ | |||||||
Other investments | ||||||||||||
Net realized gains (losses) on investment | $ | $ | ( | ) | $ | |||||||
For the Nine Months Ended September 30, 2018 | Gross gains | Gross losses | Net | |||||||||
AFS fixed maturities | $ | $ | ( | ) | $ | ( | ) | |||||
Other investments | ||||||||||||
Net realized gains (losses) on investment | $ | $ | ( | ) | $ | ( | ) | |||||
For the Nine Months Ended September 30, 2017 | Gross gains | Gross losses | Net | |||||||||
AFS fixed maturities | $ | $ | ( | ) | $ | |||||||
Other investments | ||||||||||||
Net realized gains (losses) on investment | $ | $ | ( | ) | $ | |||||||
September 30, 2018 | December 31, 2017 | |||||||
Fixed maturities | $ | ( | ) | $ | ||||
Other investments | ||||||||
Total net unrealized (losses) gains | ( | ) | ||||||
Deferred income tax | ( | ) | ( | ) | ||||
Net unrealized (losses) gains, net of deferred income tax | $ | ( | ) | $ | ||||
Change, net of deferred income tax | $ | ( | ) | $ | ||||
For the Three Months Ended September 30, | 2018 | 2017 | ||||||
Net gains recognized in net income on other investments during the period | $ | $ | ||||||
Net realized gains recognized on other investments divested during the period | ( | ) | ( | ) | ||||
Net unrealized losses recognized on other investments still held at end of period | $ | ( | ) | $ | ||||
For the Nine Months Ended September 30, | 2018 | 2017 | ||||||
Net gains recognized in net income on other investments during the period | $ | $ | ||||||
Net realized gains recognized on other investments divested during the period | ( | ) | ( | ) | ||||
Net unrealized gains recognized on other investments still held at end of period | $ | $ | ||||||
e) | Restricted Cash and Cash Equivalents and Investments |
September 30, 2018 | December 31, 2017 | |||||||
Restricted cash – third party agreements | $ | $ | ||||||
Restricted cash – related party agreements | ||||||||
Total restricted cash | ||||||||
Restricted investments – in trust for third party agreements at fair value (amortized cost: 2018 – $75,279; 2017 – $212,507) | ||||||||
Restricted investments AFS – in trust for related party agreements at fair value (amortized cost: 2018 – $2,515,190; 2017 – $2,281,668) | ||||||||
Restricted investments HTM – in trust for related party agreements at fair value (amortized cost: 2018 – $1,032,885; 2017 – $1,097,801) | ||||||||
Total restricted investments | ||||||||
Total restricted cash and investments | $ | $ | ||||||
• | Level 1 — Valuations based on unadjusted quoted market prices for identical assets or liabilities that we have the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation |
• | Level 2 — Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, or valuations based on models where the significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. Examples of assets and liabilities utilizing Level 2 inputs include: U.S. government-sponsored agency securities; non-U.S. government and supranational obligations; commercial mortgage-backed securities ("CMBS"); collateralized loan obligations ("CLO"); corporate and municipal bonds; and |
• | Level 3 — Valuations based on models where significant inputs are not observable. The unobservable inputs reflect our own assumptions about assumptions that market participants would use. Examples of assets and liabilities utilizing Level 3 inputs include: an investment in preference shares of a start-up insurance producer. |
September 30, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value Based on NAV Practical Expedient | Total Fair Value | |||||||||||||||
AFS fixed maturities | ||||||||||||||||||||
U.S. treasury bonds | $ | $ | $ | $ | — | $ | ||||||||||||||
U.S. agency bonds – mortgage-backed | — | |||||||||||||||||||
U.S. agency bonds – other | — | |||||||||||||||||||
Non-U.S. government and supranational bonds | — | |||||||||||||||||||
Asset-backed securities | — | |||||||||||||||||||
Corporate bonds | — | |||||||||||||||||||
Other investments | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ | |||||||||||||||
As a percentage of total assets | % | % | % | % | % | |||||||||||||||
December 31, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value Based on NAV Practical Expedient | Total Fair Value | |||||||||||||||
AFS fixed maturities | ||||||||||||||||||||
U.S. treasury bonds | $ | $ | $ | $ | — | $ | ||||||||||||||
U.S. agency bonds – mortgage-backed | — | |||||||||||||||||||
U.S. agency bonds – other | — | |||||||||||||||||||
Non-U.S. government and supranational bonds | — | |||||||||||||||||||
Asset-backed securities | — | |||||||||||||||||||
Corporate bonds | — | |||||||||||||||||||
Other investments | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ | |||||||||||||||
As a percentage of total assets | % | % | % | % | % | |||||||||||||||
September 30, 2018 | December 31, 2017 | |||||||||||||||
Financial Assets | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
HTM – corporate bonds | $ | $ | $ | $ | ||||||||||||
HTM – municipal bonds | ||||||||||||||||
Total financial assets | $ | $ | $ | $ | ||||||||||||
Financial Liabilities | ||||||||||||||||
Senior Notes - MHLA – 6.625% | $ | $ | $ | $ | ||||||||||||
Senior Notes - MHNC – 7.75% | ||||||||||||||||
Total financial liabilities | $ | $ | $ | $ | ||||||||||||
Goodwill | Intangible Assets | Total | ||||||||||
December 31, 2016 | $ | $ | $ | |||||||||
Amortization | — | ( | ) | ( | ) | |||||||
December 31, 2017 | $ | $ | $ | |||||||||
Amortization | — | ( | ) | ( | ) | |||||||
Impairment losses | ( | ) | ( | ) | ( | ) | ||||||
September 30, 2018 | $ | $ | $ | |||||||||
September 30, 2018 | Gross | Accumulated Amortization | Accumulated Impairment | Net | Useful Life | |||||||||||||
Goodwill | $ | $ | — | $ | ( | ) | $ | Indefinite | ||||||||||
State licenses | — | ( | ) | Indefinite | ||||||||||||||
Customer relationships | ( | ) | ( | ) | 15 years double declining | |||||||||||||
Net balance | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||
December 31, 2017 | Gross | Accumulated Amortization | Accumulated Impairment | Net | Useful Life | |||||||||||||
Goodwill | $ | $ | — | $ | ( | ) | $ | Indefinite | ||||||||||
State licenses | — | Indefinite | ||||||||||||||||
Customer relationships | ( | ) | 15 years double declining | |||||||||||||||
Net balance | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||
September 30, 2018 | 2016 Senior Notes | 2013 Senior Notes | Total | |||||||||
Principal amount | $ | $ | $ | |||||||||
Less: unamortized issuance costs | ||||||||||||
Carrying value | $ | $ | $ | |||||||||
December 31, 2017 | 2016 Senior Notes | 2013 Senior Notes | Total | |||||||||
Principal amount | $ | $ | $ | |||||||||
Less: unamortized issuance costs | ||||||||||||
Carrying value | $ | $ | $ | |||||||||
Other details: | ||||||||||||
Original debt issuance costs | $ | $ | ||||||||||
Maturity date | June 14, 2046 | Dec 1, 2043 | ||||||||||
Earliest redeemable date (for cash) | June 14, 2021 | Dec 1, 2018 | ||||||||||
Coupon rate | % | % | ||||||||||
Effective interest rate | % | % | ||||||||||
September 30, 2018 | December 31, 2017 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Fixed maturities, available-for-sale, at fair value | $ | $ | ||||||
Cash and cash equivalents | ||||||||
Restricted cash and cash equivalents | ||||||||
Accrued investment income | ||||||||
Reinsurance balances receivable, net | ||||||||
Reinsurance recoverable on unpaid losses | ||||||||
Deferred commission and other acquisition expenses | ||||||||
Goodwill and intangible assets, net | ||||||||
Other assets | ||||||||
Total assets held for sale | $ | $ | ||||||
LIABILITIES | ||||||||
Reserve for loss and loss adjustment expenses | $ | $ | ||||||
Unearned premiums | ||||||||
Accrued expenses and other liabilities | ||||||||
Total liabilities held for sale | $ | $ | ||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Gross premiums written | $ | $ | $ | $ | ||||||||||||
Net premiums written | $ | $ | $ | $ | ||||||||||||
Net premiums earned | ||||||||||||||||
Net investment income | ||||||||||||||||
Net loss and loss adjustment expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Commission and other acquisition expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
General and administrative expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Amortization of intangible assets | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
(Loss) income from discontinued operations before income taxes | ( | ) | ( | ) | ( | ) | ||||||||||
Loss on disposal of discontinued operations | ( | ) | ( | ) | ||||||||||||
Income tax benefit (expense) | ( | ) | ||||||||||||||
Loss from discontinued operations, net of income tax | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
September 30, 2018 | December 31, 2017 | |||||||
Reserve for reported loss and LAE | $ | $ | ||||||
Reserve for losses incurred but not reported ("IBNR") | ||||||||
Reserve for loss and LAE | $ | $ | ||||||
For the Nine Months Ended September 30, | 2018 | 2017 | ||||||
Gross loss and LAE reserves, January 1 | $ | $ | ||||||
Less: reinsurance recoverable on unpaid losses, January 1 | ||||||||
Net loss and LAE reserves, January 1 | ||||||||
Net incurred losses related to: | ||||||||
Current year | ||||||||
Prior years | ||||||||
Net paid losses related to: | ||||||||
Current year | ( | ) | ( | ) | ||||
Prior years | ( | ) | ( | ) | ||||
( | ) | ( | ) | |||||
Commuted recoverables | ||||||||
Effect of foreign exchange movements | ( | ) | ||||||
Net loss and LAE reserves, September 30 | ||||||||
Reinsurance recoverable on unpaid losses, September 30 | ||||||||
Gross loss and LAE reserves, September 30 | $ | $ | ||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Gross and net premiums written | $ | $ | $ | $ | ||||||||||||
Net premiums earned | ||||||||||||||||
Net loss and LAE | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Commission expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
a) | Concentrations of Credit Risk |
b) | Concentrations of Revenue |
c) | Dividends Declared |
Dividend per Share | Payable on: | Record date: | ||||
Common shares | $ | October 15, 2018 | October 1, 2018 | |||
d) | Redemption of 2013 Senior Notes |
e) | Legal Proceedings |
For the Three Months Ended September 30, | 2018 | 2017 | ||||||
Numerator: | ||||||||
Net loss from continuing operations | $ | ( | ) | $ | ( | ) | ||
Add: net (income) loss from continuing operations attributable to noncontrolling interests | ( | ) | ||||||
Net loss attributable to Maiden from continuing operations | ( | ) | ( | ) | ||||
Loss from discontinued operations, net of income tax expense | ( | ) | ( | ) | ||||
Net loss attributable to Maiden | ( | ) | ( | ) | ||||
Dividends on preference shares – Series A, C and D | ( | ) | ( | ) | ||||
Amount allocated to participating common shareholders(1) | ( | ) | ( | ) | ||||
Net loss allocated to Maiden common shareholders | $ | ( | ) | $ | ( | ) | ||
Denominator: | ||||||||
Weighted average number of common shares – basic and diluted | ||||||||
Basic and diluted loss from continuing operations per share attributable to Maiden common shareholders | $ | ( | ) | $ | ( | ) | ||
Basic and diluted loss from discontinued operations per share attributable to Maiden common shareholders | ( | ) | ( | ) | ||||
Basic and diluted loss per share attributable to Maiden common shareholders: | $ | ( | ) | $ | ( | ) | ||
For the Nine Months Ended September 30, | 2018 | 2017 | ||||||
Numerator: | ||||||||
Net loss from continuing operations | $ | ( | ) | $ | ( | ) | ||
Add: net (income) loss from continuing operations attributable to noncontrolling interests | ( | ) | ||||||
Net loss attributable to Maiden from continuing operations | ( | ) | ( | ) | ||||
Loss from discontinued operations, net of income tax expense | ( | ) | ( | ) | ||||
Net loss attributable to Maiden | ( | ) | ( | ) | ||||
Dividends on preference shares – Series A, C and D | ( | ) | ( | ) | ||||
Amount allocated to participating common shareholders(1) | ( | ) | ( | ) | ||||
Net loss allocated to Maiden common shareholders | $ | ( | ) | $ | ( | ) | ||
Denominator: | ||||||||
Weighted average number of common shares – basic and diluted | ||||||||
Basic and diluted loss from continuing operations per share attributable to Maiden common shareholders | $ | ( | ) | $ | ( | ) | ||
Basic and diluted loss from discontinued operations per share attributable to Maiden common shareholders | ( | ) | ( | ) | ||||
Basic and diluted loss per share attributable to Maiden common shareholders: | $ | ( | ) | $ | ( | ) | ||
(1) |
a) | Common Shares |
b) | Treasury Shares |
c) | Accumulated Other Comprehensive (Loss) Income |
For the Three Months Ended September 30, 2018 | Change in net unrealized gains on investment | Foreign currency translation adjustments | Total | |||||||||
Beginning balance | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Other comprehensive (loss) income before reclassifications | ( | ) | ( | ) | ||||||||
Amounts reclassified from AOCI to net income, net of tax | ||||||||||||
Net current period other comprehensive (loss) income | ( | ) | ( | ) | ||||||||
Ending balance | ( | ) | ( | ) | ||||||||
Less: AOCI attributable to noncontrolling interest | ( | ) | ( | ) | ||||||||
Ending balance, Maiden shareholders | $ | ( | ) | $ | $ | ( | ) | |||||
For the Three Months Ended September 30, 2017 | Change in net unrealized gains on investment | Foreign currency translation adjustments | Total | |||||||||
Beginning balance | $ | $ | $ | |||||||||
Other comprehensive income (loss) before reclassifications | ( | ) | ||||||||||
Amounts reclassified from AOCI to net income, net of tax | ( | ) | ( | ) | ||||||||
Net current period other comprehensive income (loss) | ( | ) | ||||||||||
Ending balance | ( | ) | ||||||||||
Less: AOCI attributable to noncontrolling interest | ( | ) | ( | ) | ||||||||
Ending balance, Maiden shareholders | $ | $ | ( | ) | $ | |||||||
For the Nine Months Ended September 30, 2018 | Change in net unrealized gains on investment | Foreign currency translation adjustments | Total | |||||||||
Beginning balance | $ | $ | ( | ) | $ | |||||||
Other comprehensive (loss) income before reclassifications | ( | ) | ( | ) | ||||||||
Amounts reclassified from AOCI to net income, net of tax | ||||||||||||
Net current period other comprehensive (loss) income | ( | ) | ( | ) | ||||||||
Ending balance | ( | ) | ( | ) | ||||||||
Less: AOCI attributable to noncontrolling interest | ( | ) | ( | ) | ||||||||
Ending balance, Maiden shareholders | $ | ( | ) | $ | $ | ( | ) | |||||
For the Nine Months Ended September 30, 2017 | Change in net unrealized gains on investment | Foreign currency translation adjustments | Total | |||||||||
Beginning balance | $ | ( | ) | $ | $ | |||||||
Other comprehensive income (loss) before reclassifications | ( | ) | ||||||||||
Amounts reclassified from AOCI to net income, net of tax | ||||||||||||
Net current period other comprehensive income (loss) | ( | ) | ||||||||||
Ending balance | ( | ) | ||||||||||
Less: AOCI attributable to noncontrolling interest | ( | ) | ( | ) | ||||||||
Ending balance, Maiden shareholders | $ | $ | ( | ) | $ | |||||||
For the Three Months Ended September 30, | 2018 | 2017 | Change | |||||||||
Summary Consolidated Statement of Income Data: | ($ in thousands except per share data) | |||||||||||
Net loss | $ | (300,232 | ) | $ | (55,054 | ) | $ | (245,178 | ) | |||
Net loss attributable to Maiden common shareholders | (308,839 | ) | (63,596 | ) | (245,243 | ) | ||||||
Non-GAAP operating loss(1) | (235,114 | ) | (54,159 | ) | (180,955 | ) | ||||||
Basic and diluted loss per common share(9): | ||||||||||||
Net loss attributable to Maiden common shareholders(2) | (3.72 | ) | (0.74 | ) | (2.98 | ) | ||||||
Non-GAAP operating loss attributable to Maiden common shareholders(1) | (2.83 | ) | (0.63 | ) | (2.20 | ) | ||||||
Dividends per common share | 0.05 | 0.15 | (0.10 | ) | ||||||||
Gross premiums written | 484,494 | 443,001 | 41,493 | |||||||||
Net premiums earned | 520,077 | 457,278 | 62,799 | |||||||||
Underwriting loss(1)(3) | (251,175 | ) | (61,362 | ) | (189,813 | ) | ||||||
Net investment income | 34,419 | 30,950 | 3,469 | |||||||||
Combined ratio(4) | 150.7 | % | 115.6 | % | 35.1 | |||||||
Annualized non-GAAP operating return on average common shareholders' equity(1) | (196.7 | )% | (21.6 | )% | (175.1 | ) | ||||||
For the Nine Months Ended September 30, | 2018 | 2017 | Change | |||||||||
Summary Consolidated Statement of Income Data: | ($ in thousands except per share data) | |||||||||||
Net loss | $ | (275,209 | ) | $ | (44,888 | ) | $ | (230,321 | ) | |||
Net loss attributable to Maiden common shareholders | (301,025 | ) | (65,465 | ) | (235,560 | ) | ||||||
Non-GAAP operating loss(1) | (256,421 | ) | (39,881 | ) | (216,540 | ) | ||||||
Basic and diluted loss per common share(9): | ||||||||||||
Net loss attributable to Maiden common shareholders(2) | (3.62 | ) | (0.76 | ) | (2.86 | ) | ||||||
Non-GAAP operating loss attributable to Maiden common shareholders(1) | (3.09 | ) | (0.46 | ) | (2.63 | ) | ||||||
Dividends per common share | 0.35 | 0.45 | (0.10 | ) | ||||||||
Gross premiums written | 1,629,347 | 1,650,762 | (21,415 | ) | ||||||||
Net premiums earned | 1,541,278 | 1,512,437 | 28,841 | |||||||||
Underwriting loss(1)(3) | (287,906 | ) | (72,197 | ) | (215,709 | ) | ||||||
Net investment income | 101,548 | 91,597 | 9,951 | |||||||||
Combined ratio(4) | 120.7 | % | 106.3 | % | 14.4 | |||||||
Annualized non-GAAP operating return on average common shareholders' equity(1) | (63.8 | )% | (5.3 | )% | (58.5 | ) | ||||||
September 30, 2018 | December 31, 2017 | Change | ||||||||||
Consolidated Financial Condition | ($ in thousands except per share data) | |||||||||||
Total investments and cash and cash equivalents(5) | $ | 4,101,598 | $ | 3,961,292 | $ | 140,306 | ||||||
Total assets | 6,536,501 | 6,644,189 | (107,688 | ) | ||||||||
Reserve for loss and loss adjustment expenses ("loss and LAE") | 2,851,685 | 2,386,722 | 464,963 | |||||||||
Senior notes - principal amount | 262,500 | 262,500 | — | |||||||||
Maiden common shareholders' equity | 307,554 | 767,174 | (459,620 | ) | ||||||||
Maiden shareholders' equity | 772,554 | 1,232,174 | (459,620 | ) | ||||||||
Total capital resources(6) | 1,035,054 | 1,494,674 | (459,620 | ) | ||||||||
Ratio of debt to total capital resources | 25.4 | % | 17.6 | % | 7.8 | |||||||
Book Value | ||||||||||||
Book value per common share(7) | $ | 3.71 | $ | 9.25 | $ | (5.54 | ) | |||||
Accumulated dividends per common share | 4.27 | 3.92 | 0.35 | |||||||||
Book value per common share plus accumulated dividends | $ | 7.98 | $ | 13.17 | $ | (5.19 | ) | |||||
Diluted book value per common share(8) | $ | 3.70 | $ | 9.18 | $ | (5.48 | ) | |||||
(1) | Non-GAAP operating loss, non-GAAP operating loss per common share, non-GAAP operating return on average common equity and underwriting loss income are non-GAAP financial measures. See "Key Financial Measures" for additional information and a reconciliation to the nearest U.S. GAAP financial measure net income. |
(2) | Please refer to "Notes to Condensed Consolidated Financial Statements (unaudited) Note 12. Earnings per Common Share" for the calculation of basic and diluted loss per common share. |
(3) | Underwriting loss is a non-GAAP measure and is calculated as net premiums earned plus other insurance revenue less net loss and LAE, commission and other acquisition expenses and general and administrative expenses directly related to underwriting activities. |
(4) | Calculated by adding together the net loss and LAE ratio and the expense ratio. |
(5) | Total investments and cash and cash equivalents includes both restricted and unrestricted. |
(6) | Total capital resources is the sum of the Company's principal amount of debt and Maiden shareholders' equity. See "Key Financial Measures" for additional information. |
(7) | Book value per common share is calculated using Maiden common shareholders’ equity (shareholders' equity excluding the aggregate liquidation value of our preference shares) divided by the number of common shares outstanding. |
(8) | Diluted book value per common share is calculated by dividing Maiden common shareholders' equity, adjusted for assumed proceeds from the exercise of dilutive options, by the number of outstanding common shares plus dilutive options and restricted share units (assuming exercise of all dilutive share based awards). |
(9) | During a period of loss, the basic weighted average common shares outstanding is used in the denominator of the diluted loss per common share computation |
For the Three Months Ended September 30, | 2018 | 2017 | ||||||
($ in thousands except per share data) | ||||||||
Net loss attributable to Maiden common shareholders | $ | (308,839 | ) | $ | (63,596 | ) | ||
Add (subtract): | ||||||||
Net realized losses (gains) on investment | 225 | (5,859 | ) | |||||
Total other-than-temporary impairment losses | 479 | — | ||||||
Foreign exchange losses | 552 | 3,550 | ||||||
Loss from discontinued operations, net of income tax | 71,100 | 9,908 | ||||||
Loss from divested NGHC Quota Share run-off | 1,369 | 1,838 | ||||||
Non-GAAP operating loss attributable to Maiden common shareholders | $ | (235,114 | ) | $ | (54,159 | ) | ||
Diluted loss per share attributable to Maiden common shareholders | $ | (3.72 | ) | $ | (0.74 | ) | ||
Add (subtract): | ||||||||
Net realized losses (gains) on investment | — | (0.07 | ) | |||||
Total other-than-temporary impairment losses | 0.01 | — | ||||||
Foreign exchange losses | 0.01 | 0.04 | ||||||
Loss from discontinued operations, net of income tax | 0.85 | 0.12 | ||||||
Loss from divested NGHC Quota Share run-off | 0.02 | 0.02 | ||||||
Non-GAAP diluted operating loss per common share | $ | (2.83 | ) | $ | (0.63 | ) | ||
For the Nine Months Ended September 30, | 2018 | 2017 | ||||||
($ in thousands except per share data) | ||||||||
Net loss attributable to Maiden common shareholders | $ | (301,025 | ) | $ | (65,465 | ) | ||
Add (subtract): | ||||||||
Net realized losses (gains) on investment | 282 | (8,316 | ) | |||||
Total other-than-temporary impairment losses | 479 | — | ||||||
Foreign exchange (gains) losses | (1,862 | ) | 12,193 | |||||
Loss from discontinued operations, net of income tax | 44,336 | 17,060 | ||||||
Loss from divested NGHC Quota Share run-off | 1,369 | 1,838 | ||||||
Accelerated amortization of senior note issuance cost | — | 2,809 | ||||||
Non-GAAP operating loss attributable to Maiden common shareholders | $ | (256,421 | ) | $ | (39,881 | ) | ||
Diluted loss per share attributable to Maiden common shareholders | $ | (3.62 | ) | $ | (0.76 | ) | ||
Add (subtract): | ||||||||
Net realized losses (gains) on investment | — | (0.10 | ) | |||||
Total other-than-temporary impairment losses | 0.01 | — | ||||||
Foreign exchange (gains) losses | (0.03 | ) | 0.14 | |||||
Loss from discontinued operations, net of income tax | 0.53 | 0.20 | ||||||
Loss from divested NGHC Quota Share run-off | 0.02 | 0.02 | ||||||
Accelerated amortization of senior note issuance cost | — | 0.04 | ||||||
Non-GAAP diluted operating loss per common share | $ | (3.09 | ) | $ | (0.46 | ) | ||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
($ in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Non-GAAP operating loss attributable to Maiden common shareholders | $ | (235,114 | ) | $ | (54,159 | ) | $ | (256,421 | ) | $ | (39,881 | ) | ||||
Opening Maiden common shareholders’ equity | 640,742 | 1,035,399 | 767,174 | 1,045,797 | ||||||||||||
Ending Maiden common shareholders’ equity | 307,554 | 956,027 | 307,554 | 956,027 | ||||||||||||
Average Maiden common shareholders’ equity | 474,148 | 995,713 | 537,364 | 1,000,912 | ||||||||||||
Non-GAAP Operating ROACE | (196.7 | )% | (21.6 | )% | (63.8 | )% | (5.3 | )% | ||||||||
September 30, 2018 | December 31, 2017 | |||||||
($ in thousands except share and per share data) | ||||||||
Ending Maiden common shareholders’ equity | $ | 307,554 | $ | 767,174 | ||||
Proceeds from assumed conversion of dilutive options | 583 | 9,416 | ||||||
Numerator for diluted book value per common share calculation | $ | 308,137 | $ | 776,590 | ||||
Common shares outstanding | 82,942,737 | 82,974,895 | ||||||
Shares issued from assumed conversion of dilutive options and restricted share units | 349,368 | 1,627,236 | ||||||
Denominator for diluted book value per common share calculation | 83,292,105 | 84,602,131 | ||||||
Book value per common share | $ | 3.71 | $ | 9.25 | ||||
Diluted book value per common share | $ | 3.70 | $ | 9.18 | ||||
September 30, 2018 | December 31, 2017 | |||||||
($ in thousands) | ||||||||
Senior notes - principal amount | $ | 262,500 | $ | 262,500 | ||||
Maiden shareholders’ equity | 772,554 | 1,232,174 | ||||||
Total capital resources | $ | 1,035,054 | $ | 1,494,674 | ||||
Ratio of debt to total capital resources | 25.4 | % | 17.6 | % | ||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
($ in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Gross premiums written | $ | 484,494 | $ | 443,001 | $ | 1,629,347 | $ | 1,650,762 | ||||||||
Net premiums written | $ | 482,806 | $ | 432,677 | $ | 1,626,485 | $ | 1,603,414 | ||||||||
Net premiums earned | $ | 520,077 | $ | 457,278 | $ | 1,541,278 | $ | 1,512,437 | ||||||||
Other insurance revenue | 1,870 | 2,488 | 7,629 | 7,816 | ||||||||||||
Net loss and LAE | (600,296 | ) | (370,847 | ) | (1,323,503 | ) | (1,090,608 | ) | ||||||||
Commission and other acquisition expenses | (167,618 | ) | (145,352 | ) | (497,026 | ) | (487,771 | ) | ||||||||
General and administrative expenses(1) | (5,208 | ) | (4,929 | ) | (16,284 | ) | (14,071 | ) | ||||||||
Underwriting loss(2) | (251,175 | ) | (61,362 | ) | (287,906 | ) | (72,197 | ) | ||||||||
Other general and administrative expenses(1) | (13,728 | ) | (10,510 | ) | (32,059 | ) | (24,090 | ) | ||||||||
Net investment income | 34,419 | 30,950 | 101,548 | 91,597 | ||||||||||||
Net realized (losses) gains on investment | (225 | ) | 5,859 | (282 | ) | 8,316 | ||||||||||
Total other-than-temporary impairment losses | (479 | ) | — | (479 | ) | — | ||||||||||
Accelerated amortization of senior note issuance cost | — | — | — | (2,809 | ) | |||||||||||
Foreign exchange (losses) gains | (552 | ) | (3,550 | ) | 1,862 | (12,193 | ) | |||||||||
Interest and amortization expenses | (4,829 | ) | (4,829 | ) | (14,487 | ) | (18,430 | ) | ||||||||
Income tax benefit (expense) | 7,437 | (1,704 | ) | 930 | 1,978 | |||||||||||
Net loss from continuing operations | (229,132 | ) | (45,146 | ) | (230,873 | ) | (27,828 | ) | ||||||||
Loss from discontinued operations, net of income tax | (71,100 | ) | (9,908 | ) | (44,336 | ) | (17,060 | ) | ||||||||
(Income) loss attributable to noncontrolling interests | (62 | ) | 3 | (180 | ) | 34 | ||||||||||
Dividends on preference shares | (8,545 | ) | (8,545 | ) | (25,636 | ) | (20,611 | ) | ||||||||
Net loss attributable to Maiden common shareholders | $ | (308,839 | ) | $ | (63,596 | ) | $ | (301,025 | ) | $ | (65,465 | ) | ||||
Ratios | ||||||||||||||||
Net loss and LAE ratio(3) | 115.0 | % | 80.6 | % | 85.5 | % | 71.7 | % | ||||||||
Commission and other acquisition expense ratio(4) | 32.1 | % | 31.6 | % | 32.1 | % | 32.1 | % | ||||||||
General and administrative expense ratio(5) | 3.6 | % | 3.4 | % | 3.1 | % | 2.5 | % | ||||||||
Expense ratio(6) | 35.7 | % | 35.0 | % | 35.2 | % | 34.6 | % | ||||||||
Combined ratio(7) | 150.7 | % | 115.6 | % | 120.7 | % | 106.3 | % | ||||||||
(1) | Underwriting related general and administrative expenses is a non-GAAP measure. Please refer to "General and Administrative Expenses" below for additional information related to these corporate expenses and the reconciliation to those presented in our Condensed Consolidated Statements of Income. |
(2) | Underwriting loss is a non-GAAP measure and is calculated as net premiums earned plus other insurance revenue less net loss and LAE, commission and other acquisition expenses and general and administrative expenses directly related to underwriting activities. |
(3) | Calculated by dividing net loss and LAE by the sum of net premiums earned and other insurance revenue. |
(4) | Calculated by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue. |
(5) | Calculated by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue. |
(6) | Calculated by adding together commission and other acquisition expense ratio and general and administrative expense ratio. |
(7) | Calculated by adding together net loss and LAE ratio and the expense ratio. |
• | increased underwriting loss of $251.2 million compared to an underwriting loss of $61.4 million in the same period in 2017. The higher underwriting loss was principally due to: |
◦ | higher adverse prior year loss development for the AmTrust Reinsurance segment which was $210.4 million during the three months ended September 30, 2018 compared to $61.1 million for the same period in 2017; and |
◦ | partially offset by the impact of higher premiums earned which increased in both our operating segments compared to the same period in 2017. |
• | realized losses on investment of $0.2 million for the three months ended September 30, 2018 compared to realized gains of $5.9 million for the same period in 2017; and |
• | total general and administrative expenses increased by $3.5 million for the three months ended September 30, 2018 compared to the same period in 2017 due to increases in compensation benefits paid under certain executive separation agreements, greater corporate insurance costs incurred and higher technology-related expenses. |
• | net investment income increased by $3.5 million or 11.2%, for the three months ended September 30, 2018 compared to the same period in 2017 due to an increase in average yields to 3.3% during the three months ended September 30, 2018 compared to 3.1% during the same period in 2017. Also, average investable assets increased by 5.5% from the same period in 2017. Please refer to the Net Investment Income section below for further discussion of the movement in average yields. |
• | an underwriting loss of $287.9 million compared to an underwriting loss of $72.2 million during the nine months ended September 30, 2017. The deterioration in the underwriting result was principally due to: |
◦ | higher adverse prior year loss development for the AmTrust Reinsurance segment which was $247.3 million during the nine months ended September 30, 2018 compared to $100.9 million for the same period in 2017; and |
◦ | partially offset by the impact of higher premiums earned which increased in both our operating segments compared to the same period in 2017. |
• | realized losses on investment of $0.3 million for the nine months ended September 30, 2018 compared to realized gains of $8.3 million for the same period in 2017; |
• | total general and administrative expenses increased by $10.2 million for the nine months ended September 30, 2018 compared to the same period in 2017 due to increases in compensation benefits paid under certain executive separation agreements, higher audit, legal and other professional fees incurred and higher technology-related expenses; and |
• | higher dividends paid to preference shareholders of $25.6 million for the nine months ended September 30, 2018 compared to $20.6 million for the same period in 2017 due to the issuance of Preference Shares - Series D on June 15, 2017. |
• | net investment income increased by $10.0 million or 10.9%, for the nine months ended September 30, 2018 compared to the same period in 2017 largely due to higher average investable assets which grew by 7.9% from the same period in 2017. Please refer to the Net Investment Income section below for further discussion of the movement in average yields which remained at 3.2% for the nine months ended September 30, 2018 compared to the same period in 2017; |
• | lower interest and amortization expenses which decreased by $3.9 million or 21.4% compared to the same period in 2017 due to the redemption of the 2012 Senior Notes on June 27, 2017. The prior period also included a charge of $2.8 million resulting from the acceleration of the amortization of the 2012 Senior Notes issuance cost; and |
• | foreign exchange gains of $1.9 million for the nine months ended September 30, 2018 compared to foreign exchange losses of $12.2 million for the same period in 2017 due to the recent weakening of the euro and British pound against the U.S. dollar. |
For the Three Months Ended September 30, | 2018 | 2017 | Change in | ||||||||||||||||||
($ in thousands) | Total | % of Total | Total | % of Total | $ | % | |||||||||||||||
Diversified Reinsurance | $ | 31,291 | 6.5 | % | $ | 22,484 | 5.2 | % | $ | 8,807 | 39.2 | % | |||||||||
AmTrust Reinsurance | 451,515 | 93.5 | % | 410,193 | 94.8 | % | 41,322 | 10.1 | % | ||||||||||||
Total | $ | 482,806 | 100.0 | % | $ | 432,677 | 100.0 | % | $ | 50,129 | 11.6 | % | |||||||||
For the Nine Months Ended September 30, | 2018 | 2017 | Change in | ||||||||||||||||||
($ in thousands) | Total | % of Total | Total | % of Total | $ | % | |||||||||||||||
Diversified Reinsurance | $ | 109,279 | 6.7 | % | $ | 73,434 | 4.6 | % | $ | 35,845 | 48.8 | % | |||||||||
AmTrust Reinsurance | 1,517,206 | 93.3 | % | 1,529,980 | 95.4 | % | (12,774 | ) | (0.8 | )% | |||||||||||
Total | $ | 1,626,485 | 100.0 | % | $ | 1,603,414 | 100.0 | % | $ | 23,071 | 1.4 | % | |||||||||
• | AmTrust Reinsurance segment increased by $41.3 million or 10.1% generated by growth in specialty lines of business partially offset by reduced premiums in workers compensation due to a combination of market conditions and underwriting measures applied by AmTrust during the period. The increase in net premiums written was also due to the reduction in the utilization of retrocessional capacity in 2018 compared to the same period in 2017; and |
• | Diversified Reinsurance segment increased by $8.8 million or 39.2% generated by new account growth and expansion of client relationships in our European capital solutions business. |
• | Diversified Reinsurance segment increased by $35.8 million or 48.8% due to new account growth and expansion of the Australia Warranty program, German Auto program and other client relationships in our European capital solutions business during 2018 as well as new business development; and |
• | AmTrust Reinsurance segment decreased by $12.8 million or 0.8% mainly due to a combination of market conditions and underwriting measures applied by AmTrust during the period on Small Commercial Business, particularly workers compensation. |
For the Three Months Ended September 30, | 2018 | 2017 | Change in | ||||||||||||||||||
($ in thousands) | Total | % of Total | Total | % of Total | $ | % | |||||||||||||||
Diversified Reinsurance | $ | 28,784 | 5.5 | % | $ | 20,925 | 4.6 | % | $ | 7,859 | 37.6 | % | |||||||||
AmTrust Quota Share Reinsurance | 491,293 | 94.5 | % | 436,353 | 95.4 | % | 54,940 | 12.6 | % | ||||||||||||
Total | $ | 520,077 | 100.0 | % | $ | 457,278 | 100.0 | % | $ | 62,799 | 13.7 | % | |||||||||
For the Nine Months Ended September 30, | 2018 | 2017 | Change in | ||||||||||||||||||
($ in thousands) | Total | % of Total | Total | % of Total | $ | % | |||||||||||||||
Diversified Reinsurance | $ | 82,838 | 5.4 | % | $ | 61,626 | 4.1 | % | $ | 21,212 | 34.4 | % | |||||||||
AmTrust Quota Share Reinsurance | 1,458,440 | 94.6 | % | 1,450,811 | 95.9 | % | 7,629 | 0.5 | % | ||||||||||||
Total | $ | 1,541,278 | 100.0 | % | $ | 1,512,437 | 100.0 | % | $ | 28,841 | 1.9 | % | |||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
($ in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Average investable assets(1) | $ | 4,226,404 | $ | 4,004,898 | $ | 4,172,955 | $ | 3,868,964 | ||||||||
Average book yield(2) | 3.3 | % | 3.1 | % | 3.2 | % | 3.2 | % | ||||||||
(1) | The average of the Company's investments, cash and cash equivalents, restricted cash and cash equivalents and loan to related party at each quarter-end during the period. |
(2) | Ratio of net investment income over average investable assets at fair value. |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
($ in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
General and administrative expenses – segments | $ | 5,208 | $ | 4,929 | $ | 16,284 | $ | 14,071 | ||||||||
General and administrative expenses – corporate | 13,728 | 10,510 | 32,059 | 24,090 | ||||||||||||
Total general and administrative expenses | $ | 18,936 | $ | 15,439 | $ | 48,343 | $ | 38,161 | ||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
($ in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Gross premiums written | $ | 31,699 | $ | 22,982 | $ | 111,139 | $ | 75,085 | ||||||||
Net premiums written | 31,291 | 22,484 | 109,279 | 73,434 | ||||||||||||
Net premiums earned | 28,784 | 20,925 | 82,838 | 61,626 | ||||||||||||
Other insurance revenue | 1,870 | 2,488 | 7,629 | 7,816 | ||||||||||||
Net loss and LAE | (19,764 | ) | (13,979 | ) | (51,828 | ) | (41,548 | ) | ||||||||
Commission and other acquisition expenses | (8,961 | ) | (6,702 | ) | (28,261 | ) | (21,982 | ) | ||||||||
General and administrative expenses | (4,256 | ) | (4,158 | ) | (13,330 | ) | (11,831 | ) | ||||||||
Underwriting loss | $ | (2,327 | ) | $ | (1,426 | ) | $ | (2,952 | ) | $ | (5,919 | ) | ||||
Ratios | ||||||||||||||||
Net loss and LAE ratio | 64.5 | % | 59.7 | % | 57.3 | % | 59.8 | % | ||||||||
Commission and other acquisition expense ratio | 29.2 | % | 28.6 | % | 31.3 | % | 31.7 | % | ||||||||
General and administrative expense ratio | 13.9 | % | 17.8 | % | 14.7 | % | 17.0 | % | ||||||||
Expense ratio | 43.1 | % | 46.4 | % | 46.0 | % | 48.7 | % | ||||||||
Combined ratio | 107.6 | % | 106.1 | % | 103.3 | % | 108.5 | % | ||||||||
• | combined ratio increased by 1.5 points for the three months ended September 30, 2018 compared to the same period in 2017 which reflects higher initial loss ratios on current year premiums earned during the period partially offset by lower adverse prior year loss development of $0.7 million compared to $1.1 million during the third quarter of 2017; and |
• | excluding prior year loss development, the combined ratio for the three months ended September 30, 2018 would have been 105.4% compared to 101.5% for the same period in 2017. |
• | lower net adverse prior year loss development which was $1.8 million during the nine months ended September 30, 2018, compared to $8.5 million for the same period in 2017. The 2018 development was due to adverse facultative reinsurance run-off partially offset by favorable development in International Auto. Prior year adverse loss development during 2017 was primarily from facultative reinsurance run-off lines as well as claims activity in International auto programs; and |
• | excluding prior year loss development, the combined ratio for the nine months ended September 30, 2018 would have been 101.3% compared to 96.3% for the same period in 2017, reflecting higher initial loss ratios on current year premiums earned during the period. |
For the Three Months Ended September 30, | 2018 | 2017 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Written | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
International | 31,291 | 100.0 | % | 22,503 | 100.1 | % | 8,788 | 39.1 | % | ||||||||||||
Casualty | — | — | % | (19 | ) | (0.1 | )% | 19 | (100.0 | )% | |||||||||||
Total Diversified Reinsurance | $ | 31,291 | 100.0 | % | $ | 22,484 | 100.0 | % | $ | 8,807 | 39.2 | % | |||||||||
For the Nine Months Ended September 30, | 2018 | 2017 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Written | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
International | 109,238 | 100.0 | % | 73,475 | 100.1 | % | 35,763 | 48.7 | % | ||||||||||||
Casualty | 41 | — | % | (41 | ) | (0.1 | )% | 82 | (200.0 | )% | |||||||||||
Total Diversified Reinsurance | $ | 109,279 | 100.0 | % | $ | 73,434 | 100.0 | % | $ | 35,845 | 48.8 | % | |||||||||
For the Three Months Ended September 30, | 2018 | 2017 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Earned | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
International | 28,784 | 100.0 | % | 20,943 | 100.1 | % | 7,841 | 37.4 | % | ||||||||||||
Casualty | — | — | % | (18 | ) | (0.1 | )% | 18 | (100.0 | )% | |||||||||||
Total Diversified Reinsurance | $ | 28,784 | 100.0 | % | $ | 20,925 | 100.0 | % | $ | 7,859 | 37.6 | % | |||||||||
For the Nine Months Ended September 30, | 2018 | 2017 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Earned | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
International | 82,797 | 100.0 | % | 61,667 | 100.1 | % | 21,130 | 34.3 | % | ||||||||||||
Casualty | 41 | — | % | (41 | ) | (0.1 | )% | 82 | (200.0 | )% | |||||||||||
Total Diversified Reinsurance | $ | 82,838 | 100.0 | % | $ | 61,626 | 100.0 | % | $ | 21,212 | 34.4 | % | |||||||||
• | higher initial loss ratios on current year premiums earned during the period partially offset by lower adverse prior year loss development which was $0.7 million during the three months ended September 30, 2018, compared to $1.1 million for the same period in 2017; and |
• | excluding prior year loss development, the net loss and LAE ratio for the three months ended September 30, 2018 would have been 62.3% compared to 55.1% for the same period in 2017. |
• | lower adverse prior year loss development which was $1.8 million during the nine months ended September 30, 2018, compared to $8.5 million for the same period in 2017. The 2018 development was from facultative reinsurance run-off lines partially offset by favorable development in International auto programs. The development in 2017 was primarily due to adverse development in facultative reinsurance run-off lines as well as claims activity in International auto programs; and |
• | excluding prior year loss development, the net loss and LAE ratio for the nine months ended September 30, 2018 would have been 55.3% compared to 47.6% for the same period in 2017 which reflects higher initial loss ratios on current year premiums earned during the period factoring in both market conditions and recent loss trends and experience. |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
($ in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Gross premiums written | $ | 452,795 | $ | 420,019 | $ | 1,518,208 | $ | 1,575,677 | ||||||||
Net premiums written | 451,515 | 410,193 | 1,517,206 | 1,529,980 | ||||||||||||
Net premiums earned | 491,293 | 436,353 | 1,458,440 | 1,450,811 | ||||||||||||
Net loss and LAE | (579,163 | ) | (355,030 | ) | (1,270,306 | ) | (1,047,222 | ) | ||||||||
Commission and other acquisition expenses | (158,657 | ) | (138,650 | ) | (468,765 | ) | (465,789 | ) | ||||||||
General and administrative expenses | (952 | ) | (771 | ) | (2,954 | ) | (2,240 | ) | ||||||||
Underwriting loss | $ | (247,479 | ) | $ | (58,098 | ) | $ | (283,585 | ) | $ | (64,440 | ) | ||||
Ratios | ||||||||||||||||
Net loss and LAE ratio | 117.9 | % | 81.4 | % | 87.1 | % | 72.2 | % | ||||||||
Commission and other acquisition expense ratio | 32.3 | % | 31.7 | % | 32.1 | % | 32.1 | % | ||||||||
General and administrative expense ratio | 0.2 | % | 0.2 | % | 0.2 | % | 0.1 | % | ||||||||
Expense ratio | 32.5 | % | 31.9 | % | 32.3 | % | 32.2 | % | ||||||||
Combined ratio | 150.4 | % | 113.3 | % | 119.4 | % | 104.4 | % | ||||||||
• | higher adverse prior year loss development which was $210.4 million during the third quarter of 2018 compared to $61.1 million for the same period in 2017. The adverse prior year loss development in 2018 was largely from Workers Compensation which represented nearly half of the adverse development and was primarily driven by accident years 2014 to 2017, and to a lesser extent, development in European hospital liability, Commercial Auto and General liability. Prior year adverse loss development in 2017 was primarily related to Worker's Compensation, General liability as well as Commercial Auto liability lines for both Specialty Programs and Small Commercial Business where elevated loss activity had been observed; and |
• | excluding prior year loss development, the combined ratio for the current period would have been 107.6% compared to 99.3% for 2017, reflecting higher initial loss ratios for current year premiums earned during the period factoring in both market conditions and recent loss trends and experience as well as elevated actual current year activity in the Specialty Risk and Extended Warranty lines. |
• | higher adverse prior year loss development which was $247.3 million in 2018, compared to $100.9 million for the same period in 2017. Prior year adverse loss development in 2018 was largely from Workers Compensation and European hospital liability, with a smaller contribution from General and Commercial Auto Liability. Prior year adverse loss development in 2017 was from General liability as well as Auto liability and Workers Compensation lines for both Specialty Programs and Small Commercial Business where elevated loss activity had been observed; and |
• | excluding prior year loss development, the combined ratio for the current period would have been 102.4% compared to 97.4% for 2017 reflecting higher initial loss ratios for current year premiums earned during the period factoring in both market conditions and recent loss trends and experience as well as elevated actual current year activity in the Specialty Risk and Extended Warranty lines. |
For the Three Months Ended September 30, | 2018 | 2017 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Written | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
Small Commercial Business | $ | 232,163 | 51.4 | % | $ | 295,499 | 72.0 | % | $ | (63,336 | ) | (21.4 | )% | ||||||||
Specialty Program | 94,077 | 20.8 | % | 63,816 | 15.6 | % | 30,261 | 47.4 | % | ||||||||||||
Specialty Risk and Extended Warranty | 125,275 | 27.8 | % | 50,878 | 12.4 | % | 74,397 | 146.2 | % | ||||||||||||
Total AmTrust Reinsurance | $ | 451,515 | 100.0 | % | $ | 410,193 | 100.0 | % | $ | 41,322 | 10.1 | % | |||||||||
For the Nine Months Ended September 30, | 2018 | 2017 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Written | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
Small Commercial Business | $ | 879,403 | 57.9 | % | $ | 1,028,905 | 67.3 | % | $ | (149,502 | ) | (14.5 | )% | ||||||||
Specialty Program | 286,404 | 18.9 | % | 255,767 | 16.7 | % | 30,637 | 12.0 | % | ||||||||||||
Specialty Risk and Extended Warranty | 351,399 | 23.2 | % | 245,308 | 16.0 | % | 106,091 | 43.2 | % | ||||||||||||
Total AmTrust Reinsurance | $ | 1,517,206 | 100.0 | % | $ | 1,529,980 | 100.0 | % | $ | (12,774 | ) | (0.8 | )% | ||||||||
For the Three Months Ended September 30, | 2018 | 2017 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Earned | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
Small Commercial Business | $ | 273,456 | 55.7 | % | $ | 314,773 | 72.1 | % | $ | (41,317 | ) | (13.1 | )% | ||||||||
Specialty Program | 98,359 | 20.0 | % | 59,143 | 13.6 | % | 39,216 | 66.3 | % | ||||||||||||
Specialty Risk and Extended Warranty | 119,478 | 24.3 | % | 62,437 | 14.3 | % | 57,041 | 91.4 | % | ||||||||||||
Total AmTrust Reinsurance | $ | 491,293 | 100.0 | % | $ | 436,353 | 100.0 | % | $ | 54,940 | 12.6 | % | |||||||||
For the Nine Months Ended September 30, | 2018 | 2017 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Earned | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
Small Commercial Business | $ | 882,679 | 60.5 | % | $ | 946,782 | 65.3 | % | $ | (64,103 | ) | (6.8 | )% | ||||||||
Specialty Program | 283,592 | 19.5 | % | 251,153 | 17.3 | % | 32,439 | 12.9 | % | ||||||||||||
Specialty Risk and Extended Warranty | 292,169 | 20.0 | % | 252,876 | 17.4 | % | 39,293 | 15.5 | % | ||||||||||||
Total AmTrust Reinsurance | $ | 1,458,440 | 100.0 | % | $ | 1,450,811 | 100.0 | % | $ | 7,629 | 0.5 | % | |||||||||
• | higher adverse prior year loss development which was $210.4 million during the three months ended September 30, 2018, compared to $61.1 million for the same period in 2017. The 2018 development was largely from Workers Compensation which represented nearly half of the adverse development and was primarily driven by accident years 2014 to 2017, and to a lesser extent, development in European hospital liability and Commercial Auto and General Liability lines of business. The development in 2017 was primarily due to Worker's Compensation, General liability as well as Commercial Auto liability lines of business for both Specialty Programs and Small Commercial Business where elevated loss activity had been observed; and |
• | excluding prior year loss development, the net loss and LAE ratio for the three months ended September 30, 2018 would have been 75.1% compared to 67.4% for the same period in 2017, reflecting higher initial loss ratios on current year premiums earned during the period factoring in both market conditions and recent loss trends and experience as well as elevated actual current year activity in Specialty Risk and Extended Warranty lines. |
• | higher adverse prior year loss development which was $247.3 million during the nine months ended September 30, 2018, compared to $100.9 million recorded in the same period in 2017. The adverse prior year loss development in 2018 was largely from Workers Compensation and European hospital liability, with a smaller contribution from Commercial Auto and General liability. The 2017 adverse development was primarily related to General liability line of business as well as Auto liability and Workers Compensation lines for both Specialty Programs and Small Commercial Business where elevated loss activity had been observed; and |
• | excluding prior year loss development, the net loss and LAE ratio for the current period in 2018 would have been 70.1% compared to 65.2% for 2017, reflecting higher initial loss ratios on current year premiums earned during the period factoring in both market conditions and recent loss trends and experience as well as elevated actual current year activity in Specialty Risk and Extended Warranty lines. |
For the Nine Months Ended September 30, | 2018 | 2017 | ||||||
($ in thousands) | ||||||||
Operating activities | $ | 162,623 | $ | 374,814 | ||||
Investing activities | 27,151 | (185,013 | ) | |||||
Financing activities | (63,893 | ) | (28,440 | ) | ||||
Effect of exchange rate changes on foreign currency cash | (1,131 | ) | 3,379 | |||||
Total increase in cash and cash equivalents (including restricted) | 124,750 | 164,740 | ||||||
Less: increase in cash and cash equivalents (including restricted) of discontinued operations | 9,551 | 49,473 | ||||||
Total increase in cash and cash equivalents (including restricted) of continuing operations | $ | 115,199 | $ | 115,267 | ||||
September 30, 2018 | December 31, 2017 | |||
Fixed maturities and cash and cash equivalents | 4.4 | 4.4 | ||
Reserve for loss and LAE | 3.8 | 3.6 | ||
September 30, 2018 | Original or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Average yield(1) | Average duration(2) | ||||||||||||||||
AFS fixed maturities | ($ in thousands) | |||||||||||||||||||||
U.S. treasury bonds | $ | 125 | $ | — | $ | (1 | ) | $ | 124 | 1.3 | % | 0.6 | ||||||||||
U.S. agency bonds – mortgage-backed | 1,484,434 | 830 | (58,068 | ) | 1,427,196 | 3.0 | % | 5.5 | ||||||||||||||
U.S. agency bonds – other | 24,870 | — | (1,180 | ) | 23,690 | 3.3 | % | 5.4 | ||||||||||||||
Non-U.S. government and supranational bonds | 22,550 | 122 | (1,827 | ) | 20,845 | 3.3 | % | 4.5 | ||||||||||||||
Asset-backed securities | 226,652 | 552 | (2,000 | ) | 225,204 | 4.2 | % | 2.4 | ||||||||||||||
Corporate bonds | 1,108,620 | 8,834 | (32,960 | ) | 1,084,494 | 2.9 | % | 4.3 | ||||||||||||||
Total AFS fixed maturities | 2,867,251 | 10,338 | (96,036 | ) | 2,781,553 | 3.1 | % | 4.8 | ||||||||||||||
HTM fixed maturities | ||||||||||||||||||||||
Corporate bonds | 974,947 | 6,103 | (18,190 | ) | 962,860 | 3.7 | % | 4.6 | ||||||||||||||
Municipal Bonds | 57,938 | — | (1,057 | ) | 56,881 | 3.2 | % | 4.2 | ||||||||||||||
Total HTM fixed maturities | 1,032,885 | 6,103 | (19,247 | ) | 1,019,741 | 3.6 | % | 4.6 | ||||||||||||||
Cash and cash equivalents | 264,574 | — | — | 264,574 | 2.2 | % | 0.0 | |||||||||||||||
Total | $ | 4,164,710 | $ | 16,441 | $ | (115,283 | ) | $ | 4,065,868 | 3.1 | % | 4.4 | ||||||||||
December 31, 2017 | Original or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Average yield(1) | Average duration(2) | ||||||||||||||||
AFS fixed maturities | ($ in thousands) | |||||||||||||||||||||
U.S. treasury bonds | $ | 35,093 | $ | 4 | $ | — | $ | 35,097 | 1.2 | % | 0.1 | |||||||||||
U.S. agency bonds – mortgage-backed | 1,475,682 | 6,181 | (13,723 | ) | 1,468,140 | 2.9 | % | 4.8 | ||||||||||||||
U.S. agency bonds – other | 19,868 | — | (149 | ) | 19,719 | 3.1 | % | 8.7 | ||||||||||||||
Non-U.S. government and supranational bonds | 32,380 | 231 | (1,713 | ) | 30,898 | 2.7 | % | 3.3 | ||||||||||||||
Asset-backed securities | 225,015 | 3,457 | (79 | ) | 228,393 | 4.4 | % | 2.4 | ||||||||||||||
Corporate bonds | 911,259 | 28,423 | (14,413 | ) | 925,269 | 2.7 | % | 4.6 | ||||||||||||||
Total AFS fixed maturities | 2,699,297 | 38,296 | (30,077 | ) | 2,707,516 | 2.9 | % | 4.5 | ||||||||||||||
HTM fixed maturities | ||||||||||||||||||||||
Corporate bonds | 1,037,464 | 28,694 | (913 | ) | 1,065,245 | 3.6 | % | 5.0 | ||||||||||||||
Municipal bonds | 60,337 | 128 | (84 | ) | 60,381 | 3.2 | % | 4.8 | ||||||||||||||
Total HTM fixed maturities | 1,097,801 | 28,822 | (997 | ) | 1,125,626 | 3.6 | % | 5.0 | ||||||||||||||
Cash and cash equivalents | 149,375 | — | — | 149,375 | 0.2 | % | 0.0 | |||||||||||||||
Total | $ | 3,946,473 | $ | 67,118 | $ | (31,074 | ) | $ | 3,982,517 | 2.9 | % | 4.4 | ||||||||||
(1) | Average yield is calculated by dividing annualized investment income for each sub-component of AFS and HTM securities and cash and cash equivalents (including amortization of premium or discount) by amortized cost. |
(2) | Average duration in years. |
September 30, 2018 | December 31, 2017 | |||||||||||||||
($ in thousands) | AFS fixed maturities | HTM fixed maturities | AFS fixed maturities | HTM fixed maturities | ||||||||||||
Fair Value | Amortized cost | Fair Value | Amortized Cost | |||||||||||||
Due in one year or less | $ | 3,522 | $ | 9,297 | $ | 64,996 | $ | 40,533 | ||||||||
Due after one year through five years | 583,069 | 371,750 | 440,560 | 333,003 | ||||||||||||
Due after five years through ten years | 542,562 | 651,838 | 487,592 | 724,265 | ||||||||||||
Due after ten years | — | — | 17,835 | — | ||||||||||||
1,129,153 | 1,032,885 | 1,010,983 | 1,097,801 | |||||||||||||
U.S. agency bonds – mortgage-backed | 1,427,196 | — | 1,468,140 | — | ||||||||||||
Asset-backed securities | 225,204 | — | 228,393 | — | ||||||||||||
Total fixed maturities | $ | 2,781,553 | $ | 1,032,885 | $ | 2,707,516 | $ | 1,097,801 | ||||||||
September 30, 2018 | December 31, 2017 | |||||||||||||
Fair Value | % of Total | Fair Value | % of Total | |||||||||||
U.S. agency bonds - mortgage-backed | ($ in thousands) | ($ in thousands) | ||||||||||||
Residential mortgage-backed ("RMBS") | ||||||||||||||
GNMA – fixed rate | $ | 155,684 | 10.7 | % | $ | 191,118 | 12.8 | % | ||||||
GNMA – variable rate | 10,873 | 0.8 | % | — | — | % | ||||||||
FNMA – fixed rate | 720,157 | 49.6 | % | 743,461 | 50.0 | % | ||||||||
FHLMC – fixed rate | 540,482 | 37.3 | % | 533,561 | 35.9 | % | ||||||||
Total U.S. agency bonds - mortgage-backed | 1,427,196 | 98.4 | % | 1,468,140 | 98.7 | % | ||||||||
U.S. agency bonds - fixed rate | 23,690 | 1.6 | % | 19,719 | 1.3 | % | ||||||||
Total U.S. agency bonds | $ | 1,450,886 | 100.0 | % | $ | 1,487,859 | 100.0 | % | ||||||
Ratings(1) | ||||||||||||||||||||||
September 30, 2018 | AAA | AA+, AA, AA- | A+, A, A- | BBB+, BBB, BBB- | BB+ or lower | Fair Value | % of Corporate bonds portfolio | |||||||||||||||
Corporate bonds | ($ in thousands) | |||||||||||||||||||||
Basic Materials | — | % | 2.6 | % | 0.8 | % | — | % | 0.6 | % | $ | 83,048 | 4.0 | % | ||||||||
Communications | — | % | 5.0 | % | 2.5 | % | 0.5 | % | — | % | 162,599 | 8.0 | % | |||||||||
Consumer | — | % | 15.2 | % | 13.4 | % | 0.5 | % | 1.0 | % | 616,520 | 30.1 | % | |||||||||
Energy | — | % | 3.9 | % | 4.7 | % | 0.8 | % | 0.8 | % | 209,139 | 10.2 | % | |||||||||
Financial Institutions | 1.6 | % | 10.1 | % | 23.7 | % | 3.1 | % | — | % | 786,440 | 38.5 | % | |||||||||
Industrials | — | % | 2.7 | % | 2.7 | % | — | % | — | % | 112,210 | 5.4 | % | |||||||||
Technology | — | % | 0.9 | % | 1.6 | % | 0.6 | % | 0.7 | % | 77,398 | 3.8 | % | |||||||||
Total | 1.6 | % | 40.4 | % | 49.4 | % | 5.5 | % | 3.1 | % | $ | 2,047,354 | 100.0 | % | ||||||||
Ratings(1) | ||||||||||||||||||||||
December 31, 2017 | AAA | AA+, AA, AA- | A+, A, A- | BBB+, BBB, BBB- | BB+ or lower | Fair Value | % of Corporate bonds portfolio | |||||||||||||||
Corporate bonds | ($ in thousands) | |||||||||||||||||||||
Basic Materials | — | % | — | % | 1.8 | % | 4.0 | % | 0.8 | % | $ | 131,339 | 6.6 | % | ||||||||
Communications | — | % | 0.2 | % | 1.3 | % | 6.4 | % | — | % | 155,574 | 7.9 | % | |||||||||
Consumer | — | % | 0.7 | % | 12.7 | % | 13.2 | % | — | % | 530,455 | 26.6 | % | |||||||||
Energy | — | % | 0.5 | % | 4.3 | % | 2.2 | % | 1.0 | % | 160,216 | 8.0 | % | |||||||||
Financial Institutions | 1.9 | % | 2.9 | % | 24.0 | % | 10.9 | % | — | % | 789,418 | 39.7 | % | |||||||||
Industrials | — | % | — | % | 2.9 | % | 4.0 | % | 0.1 | % | 138,260 | 7.0 | % | |||||||||
Technology | — | % | 0.6 | % | 2.1 | % | 0.8 | % | 0.7 | % | 85,252 | 4.2 | % | |||||||||
Total | 1.9 | % | 4.9 | % | 49.1 | % | 41.5 | % | 2.6 | % | $ | 1,990,514 | 100.0 | % | ||||||||
(1) | Ratings as assigned by S&P, or equivalent |
September 30, 2018 | Fair Value | % of Holdings Based on Fair Value of All Fixed Income Securities | Rating(1) | ||||||
($ in thousands) | |||||||||
BNP Paribas, 5.00% Due 1/15/2021 | $ | 19,760 | 0.5 | % | A | ||||
Brookfield Asset Management Inc, 4.00%, Due 1/15/2025 | 19,660 | 0.5 | % | A- | |||||
Gilead Sciences Inc, 3.65% Due 3/1/2026 | 19,640 | 0.5 | % | A | |||||
AT&T Inc, 2.625%, Due 12/1/2022 | 19,285 | 0.5 | % | BBB | |||||
Rabobank Nederland Utrec, 3.875% Due 2/8/2022 | 19,244 | 0.5 | % | A+ | |||||
Bank of Montreal, 2.35% Due 9/11/2022 | 19,182 | 0.5 | % | A+ | |||||
Electricite de France, 4.625%, Due 9/11/2024 | 18,223 | 0.5 | % | A- | |||||
Wells Fargo & Co. 1.125%, Due 10/29/2021 | 17,856 | 0.5 | % | A- | |||||
Australia and New Zealand Banking Group, 3.70%, Due 11/16/2025 | 17,812 | 0.5 | % | AA- | |||||
UBS Group Funding (Jersey) Ltd, 2.65%, Due 2/1/2022 | 16,433 | 0.4 | % | A- | |||||
Total | $ | 187,095 | 4.9 | % | |||||
(1) | Ratings as assigned by S&P, or equivalent |
September 30, 2018 | December 31, 2017 | |||||||||||||
($ in thousands) | Fair Value | % of Total | Fair Value | % of Total | ||||||||||
Non-U.S. dollar denominated corporate bonds | $ | 420,397 | 95.3 | % | $ | 434,963 | 93.4 | % | ||||||
Non-U.S. government and supranational bonds | 20,846 | 4.7 | % | 30,899 | 6.6 | % | ||||||||
Total non-U.S. dollar denominated AFS securities | $ | 441,243 | 100.0 | % | $ | 465,862 | 100.0 | % | ||||||
September 30, 2018 | December 31, 2017 | |||||||||||||
($ in thousands) | Fair Value | % of Total | Fair Value | % of Total | ||||||||||
Euro | $ | 372,562 | 84.5 | % | $ | 398,680 | 85.6 | % | ||||||
British Pound | 41,867 | 9.5 | % | 43,252 | 9.3 | % | ||||||||
Australian Dollar | 19,524 | 4.4 | % | 14,182 | 3.0 | % | ||||||||
Canadian Dollar | 5,031 | 1.1 | % | 5,254 | 1.1 | % | ||||||||
All other | 2,259 | 0.5 | % | 4,494 | 1.0 | % | ||||||||
Total non-U.S. dollar denominated AFS securities | $ | 441,243 | 100.0 | % | $ | 465,862 | 100.0 | % | ||||||
Ratings(1) | September 30, 2018 | December 31, 2017 | ||||||||||||
($ in thousands) | Fair Value | % of Total | Fair Value | % of Total | ||||||||||
AAA | $ | 31,843 | 7.6 | % | $ | 37,719 | 8.7 | % | ||||||
AA+, AA, AA- | 42,171 | 10.0 | % | 35,686 | 8.2 | % | ||||||||
A+, A, A- | 182,355 | 43.4 | % | 176,657 | 40.6 | % | ||||||||
BBB+, BBB, BBB- | 158,567 | 37.7 | % | 184,901 | 42.5 | % | ||||||||
BB+ or lower | 5,461 | 1.3 | % | — | — | % | ||||||||
Total non-U.S. dollar denominated corporate bonds | $ | 420,397 | 100.0 | % | $ | 434,963 | 100.0 | % | ||||||
(1) | Ratings as assigned by S&P, or equivalent |
($ in thousands) | September 30, 2018 | December 31, 2017 | Change | Change % | |||||||||||
Reinsurance balances receivable, net | $ | 161,436 | $ | 72,494 | $ | 88,942 | 122.7 | % | |||||||
Deferred commission and other acquisition expenses, net | 419,265 | 380,204 | 39,061 | 10.3 | % | ||||||||||
Reserve for loss and LAE | 2,851,685 | 2,386,722 | 464,963 | 19.5 | % | ||||||||||
Unearned premiums | 1,298,933 | 1,230,882 | 68,051 | 5.5 | % | ||||||||||
($ in thousands) | September 30, 2018 | December 31, 2017 | Change | Change % | |||||||||||
Preference shares | $ | 465,000 | $ | 465,000 | $ | — | — | % | |||||||
Common shareholders' equity | 307,554 | 767,174 | (459,620 | ) | (59.9 | )% | |||||||||
Total Maiden shareholders' equity | 772,554 | 1,232,174 | (459,620 | ) | (37.3 | )% | |||||||||
Senior Notes - principal amount | 262,500 | 262,500 | — | — | % | ||||||||||
Total capital resources | $ | 1,035,054 | $ | 1,494,674 | $ | (459,620 | ) | (30.8 | )% | ||||||
• | a net decrease in AOCI of $129.7 million which arose due to: 1) an increase in net unrealized losses on investment of $141.9 million resulting from the net decrease in our investment portfolio relating to market price movements due to rising interest rates and widening credit spreads during the nine months ended September 30, 2018; and partially offset by 2) an increase in cumulative translation adjustments of $12.1 million due to the effect of the recent depreciation of |
• | dividends declared of $54.7 million related to the Company’s common and preferred shares; |
• | net loss attributable to Maiden of $275.4 million. Please see "Results of Operations" on page 43 for a discussion of the Company’s net loss for the nine months ended September 30, 2018; partially offset by |
• | net increase in share based transactions of $0.2 million. |
Hypothetical Change in Interest Rates | Fair Value | Estimated Change in Fair Value | Hypothetical % (Decrease) Increase in Shareholders’ Equity | ||||||||
($ in thousands) | |||||||||||
200 basis point increase | $ | 2,502,106 | $ | (279,447 | ) | (36.2 | )% | ||||
100 basis point increase | 2,641,798 | (139,755 | ) | (18.1 | )% | ||||||
No change | 2,781,553 | — | — | % | |||||||
100 basis point decrease | 2,917,453 | 135,900 | 17.6 | % | |||||||
200 basis point decrease | 3,043,134 | 261,581 | 33.9 | % | |||||||
Ratings(1) | September 30, 2018 | December 31, 2017 | ||||
AA+ or better | 43.0 | % | 43.4 | % | ||
AA, AA-, A+, A, A- | 33.2 | % | 33.2 | % | ||
BBB+, BBB, BBB- | 22.1 | % | 22.1 | % | ||
BB+ or lower | 1.7 | % | 1.3 | % | ||
100.0 | % | 100.0 | % | |||
(1) | Ratings as assigned by S&P, or equivalent |
• | The proposed transaction may disrupt our current business plans and operations. |
• | Our management’s attention may be directed towards the completion of the transaction and diverted away from our day-to-day business operations and the execution of our current business plans. |
• | Current and prospective employees may experience uncertainty about their future roles with us, which might adversely effect our ability to attract and retain employees who generate and service our business. |
• | Uncertainties regarding our business could cause brokers, customers and other counterparties to change existing business relationships which could negatively affect our revenues, earnings and cash flows. |
• | Third-party rating agencies may downgrade or revoke our financial strength or debt ratings in connection with the Master Transaction Agreement and the Enstar Master Agreement. |
• | We may incur significantly higher transaction costs than we currently anticipate, such as legal, financing and accounting fees, and other costs, fees, expenses and charges related to the transaction, whether or not the Master Transaction Agreement and the Enstar Master Agreement are completed. |
• | We could be subject to litigation related to the proposed transaction, which could result in significant costs and expenses. |
• | The Master Transaction Agreement and the Enstar Master Agreement may not be completed, which may have an adverse effect on our stock price to the extent that the current market price reflects assumption that the transaction will be completed, result in negative reactions from our shareholder and other investors, rating agencies, employees, brokers or customers, and adversely affect our future business and financial results. |
For the Three Months Ended September 30, 2018 | Total number of shares repurchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs (a) | Dollar amount still available under trading plan | ||||||||||
($ in thousands) | ||||||||||||||
July 1, 2018 - July 31, 2018 | — | — | — | $ | 74,924 | |||||||||
August 1, 2018 - August 31, 2018 | — | — | — | $ | 74,924 | |||||||||
September 1, 2018 - September 30, 2018 | 205,000 | $ | 3.31 | 205,000 | $ | 74,245 | ||||||||
Total | 205,000 | $ | 3.31 | 205,000 | $ | 74,245 | ||||||||
Exhibit No. | Description | |
10.1 | ||
10.2 | ||
10.3 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101.1 | The following materials from Maiden Holdings, Ltd. Quarterly Report on Form 10-Q, formatted in XBRL (eXtensive Business Reporting Language): (i) the unaudited Condensed Consolidated Balance Sheets, (ii) the unaudited Condensed Consolidated Statements of Income, (iii) the unaudited Condensed Consolidated Statements of Comprehensive Income, (iv) the unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity, (v) the unaudited Condensed Consolidated Statements of Cash Flows, and (vi) Notes to unaudited Condensed Consolidated Financial Statements. | |
MAIDEN HOLDINGS, LTD. | ||
By: | ||
November 9, 2018 | /s/ Lawrence F. Metz | |
Lawrence F. Metz President and Chief Executive Officer | ||
/s/ Patrick J. Haveron | ||
Patrick J. Haveron Chief Financial Officer | ||
/s/ Michael J. Tait | ||
Michael J. Tait Chief Accounting Officer | ||
1. | Paragraph A of Article IV - DEFINITIONS is deleted in its entirety and the following is substituted therefor: |
A. | “Affiliate” means Technology and each other direct and indirect participant the U.S. Pool, AEL, AIU and each other insurance company more than fifty percent (50%) of the voting securities of which are directly or indirectly controlled by AmTrust Financial Services, Inc. (“AmTrust’) for so long as AmTrust continues to so directly or indirectly control such entity. |
2. | Paragraph A of Article IV - DEFINITIONS is revised by replacing the term “IGI” with the term “AEL” each place it appears. |
3. | Paragraph G of Article IV - DEFINITIONS is deleted in its entirety and the following is substituted therefor: |
G. | “Subject Premium” means: (i) for each Affiliate except AEL, the percentage of premium ceded to the Company under the Underlying Reinsurance Agreement to which such Affiliate is a party equal to forty percent (40%) of Affiliate Subject Premium, in respect of Covered Business in accordance with the terms of the Underlying Reinsurance Agreements, to the extent the Affiliates shall have collected such premiums, to the Company, and (ii) for AEL, the percentage of premium ceded to the Company under the AEL Quota Share, not to exceed forty percent (40%) of AEL’s Affiliate Subject Premium. |
4. | Paragraph I of Article IV - DEFINITIONS is deleted in its entirety and the following is substituted therefor: |
I. | “Underlying Reinsurance Agreement” means each of the following agreements: |
i. | The U.S. Quota Share; |
ii. | The AEL Quota Share; and |
iii. | The Quota Share Reinsurance Agreement, effective as of May 1, 2007, by and between AmTrust International Underwriters DAC (formerly known as AmTrust International Underwriters, Ltd.) (“AIU”) and the Company. |
5. | Paragraph A. 1 of Article V - LIABILITY OF THE REINSURER is deleted in its entirety and the following is substituted therefor: |
A. | 1. Commencing as of the Effective Time, except as otherwise provided on Schedule A, as now stated and as amended for time to time with respect to Additional Business and Excess Retention Business, the Company hereby agrees to cede to the Reinsurer, and the Reinsurer agrees to accept and reinsure, the Ultimate Net Loss of the Company with respect to Covered Business ceded to the Company equal to (i) forty percent (40%) of the Affiliate Ultimate Net Loss for each Affiliate except AEL, and (ii) for AEL, the percentage of AEL’s Affiliate Ultimate Net Loss equal to the related percentage of ceded Affiliate Subject Premium, in each case subject to all other terms and conditions set forth in this Agreement. For purposes of this Agreement, “Affiliate Ultimate Net Loss” means the sum actually paid or to be paid by such Affiliate in settlement of losses for which it is liable in respect of the Covered Business, after making deductions for all inuring reinsurance |
6. | The parties agree that the formation of the U.S. Pool effective October 1, 2017 is not intended to modify any of the Reinsurer’s or Company’s rights or obligations with respect to business ceded to the Reinsurer on or before September 30, 2017. |
7. | All other provisions of the Agreement remain in full force and effect. |
MAIDEN HOLDINGS, LTD. ___________________________________ Lawrence F. Metz President and Chief Executive Officer Date: | |
EXECUTIVE ___________________________________ Arturo M. Raschbaum Date: | |
SIGNED: __________________________ Arturo M. Raschbaum | DATED: __________________________ |
• | Executive Vice President of the Company based in Bermuda. Reporting to the Company’s Chief Executive Officer (CEO), Employee will provide service and assistance to the Company to assist in the transition of her role to the new Chief Financial Officer of the Company as well as to provide advice and counsel to the new CEO. |
• | Employee shall endeavor to adhere in all material respects to the Company’s material standards of conduct, policies, rules and regulations. |
• | The Company will provide the Employee her current level of base compensation, health, car, housing and welfare and pension benefits in accordance with specific Maiden benefit and pension plan requirements during such time; provided, however, that the Company retains its right to amend, modify, or discontinue any of its health, welfare and pension plans in its sole discretion, in which event Employee will receive such benefits at the same level and under the same terms as other executives at her level. |
a. | a lump sum payment for the amount of $3,325,000 (“Lump Sum”), which amount includes payment in satisfaction of Employee’s three current Long Term Incentive Plan (“LTIP”) grants, which Employee hereby waives. Such sum shall be paid to Employee as follows: $2,000,000 on or about August 31, 2018, (or, if the Agreement has not become effective by that date, as soon as practicable following the effective date of this Agreement), and the remainder of $1,325,000 (the “Second Payment”) within one week following the |
b. | Employee shall have the option to convert all of her remaining Company share options into a cash payment as calculated pursuant to a Black-Scholes computation based upon the closing share price on December 3, 2018, which shall be furnished by the Company to Employee by December 10, 2018. In the event Employee thereafter elects such cash payment option, the Company shall promptly remit such payment to Employee. If Employee elects to retain all of her share options, then vested share options held by Employee at the time of the Termination Date shall retain their full expiration date of 10 years from the original grant date. |
c. | Company shall promptly provide for tax gross up and tax return prep fees for the 2018 and 2019 fiscal years. |
d. | By the Termination Date, the Company will provide Employee a repatriation lump sum allowance, for moving of household goods from Bermuda, up to $15,000 upon receipt of the bill(s) for such services. |
e. | If the Termination Date is prior to March 1, 2019, the Company shall pay the remaining base salary and equivalent cost of the benefits which would have otherwise been payable hereunder, and shall continue to pay Employee’s car and housing allowances, through March 1, 2019. |
f. | Effective as of the Termination Date, the Employee hereby irrevocably resigns from (1) all Board of Directors positions (including Board committee positions) she has with Maiden Holdings, Ltd., and any other member of the Group (defined below in Paragraph 5(a) with respect to which she has not already resigned, and (2) all fiduciary positions (including as trustee) she holds with respect to any pension plans or trusts established by any member of the Group. The Employee agrees that this Agreement will serve as her written notice of resignation and that she will execute any documents necessary to formalize or carry out such resignations. |
Date:____________ | Lawrence F. Metz EVP, General Counsel & Secretary | _______________________________ Signature |
Date:____________ | Karen Schmitt _________________________ NAME | _______________________________ Signature |
1. | This document refers to the Separation Agreement and First General Release (“Agreement”) between Karen Schmitt (“Employee”) and Maiden Holdings, Ltd. (the “Company”), dated August 14, 2018. (the “Agreement.”) |
2. | By signing this document, and in consideration of the Second Payment to be made to her under the Agreement (as such term is defined therein), Employee acknowledges and reaffirms all of the terms of the Agreement as of the date she signs this Second General Release and Waiver of Rights and Claims (“Second Release”), including but not limited to her waiver and release of claims in Section 5 of the Agreement, subject to the exceptions set forth therein, and her post-termination obligations specified under the Agreement. Employee understands and agrees that for purposes of this reaffirmation, the “date she signs this Agreement” (or equivalent phrases) referred to in Section 5 of the Agreement, shall be the date she signs this Second Release. Therefore, she is releasing all claims, as set forth in that Agreement, subject to the exceptions set forth therein, up to and including the date she signs this Second Release. |
3. | By signing this document, and in consideration of Employee’s promises and release of claims under this Second Release, the Company acknowledges and reaffirms all of the terms of the Agreement as of the date this Second Release is signed on its behalf, including but not limited to its waiver and release of claims in Section 5 of the Agreement, subject to the exceptions set forth therein, and its post-termination obligations under the Agreement. The Company understands and agrees that for |
4. | Employee acknowledges that she was given at least 21 days to consider this Second Release following her last day of employment, that she was advised to and did consult with an attorney before signing this Second Release, and that she has 7 days after signing it to revoke it if she changes her mind. This Second Release agreement shall become effective on the eighth day after Employee signs this Second Release, provided that she has not timely revoked it prior to such time pursuant to Section 4 above (this Second Release’s “Effective Date”). |
Date:____________ | Lawrence F. Metz EVP, General Counsel & Secretary | _______________________________ Signature |
Date:____________ | Karen Schmitt _________________________ NAME | _______________________________ Signature |
1. | I have reviewed this quarterly report on Form 10-Q of Maiden Holdings, Ltd.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including any consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. | |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. | |
November 9, 2018 | /s/ LAWRENCE F. METZ | ||
Lawrence F. Metz | |||
President and Chief Executive Officer | |||
1. | I have reviewed this quarterly report on Form 10-Q of Maiden Holdings, Ltd.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including any consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. | |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. | |
November 9, 2018 | /s/ PATRICK J. HAVERON | ||
Patrick J. Haveron | |||
Chief Financial Officer | |||
November 9, 2018 | By: | /s/ LAWRENCE F. METZ | |
Lawrence F. Metz | |||
President and Chief Executive Officer | |||
November 9, 2018 | By: | /s/ PATRICK J. HAVERON | |
Patrick J. Haveron | |||
Chief Financial Officer | |||
Document and Entity Information - shares |
9 Months Ended | |
|---|---|---|
Sep. 30, 2018 |
Nov. 02, 2018 |
|
| Document and Entity Information [Abstract] | ||
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | Sep. 30, 2018 | |
| Document Fiscal Year Focus | 2018 | |
| Document Fiscal Period Focus | Q3 | |
| Trading Symbol | MHLD | |
| Entity Registrant Name | MAIDEN HOLDINGS, LTD. | |
| Entity Central Index Key | 0001412100 | |
| Current Fiscal Year End Data | --12-31 | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding (in shares) | 82,942,737 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|---|---|---|
| Fixed maturities, available-for-sale, amortized cost | $ 2,867,251 | $ 2,699,297 |
| Fixed maturities, held-to-maturity, fair value | 1,019,741 | 1,125,626 |
| Reinsurance balances receivable, net | 161,436 | 72,494 |
| Deferred commission and other acquisition expenses | 419,265 | 380,204 |
| Loss and loss adjustment expenses | 2,851,685 | 2,386,722 |
| Unearned premiums | $ 1,298,933 | $ 1,230,882 |
| Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
| Common shares, shares issued (in shares) | 87,932,287 | 87,730,054 |
| Common shares, shares outstanding (in shares) | 82,942,737 | 82,974,895 |
| Treasury shares (in shares) | 4,989,550 | 4,755,159 |
| Related party transactions | ||
| Reinsurance balances receivable, net | $ 125,046 | $ 94,597 |
| Deferred commission and other acquisition expenses | 396,799 | 379,395 |
| Loss and loss adjustment expenses | 2,749,601 | 2,337,096 |
| Unearned premiums | $ 1,223,736 | $ 1,170,397 |
Basis of Presentation |
9 Months Ended |
|---|---|
Sep. 30, 2018 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Maiden Holdings, Ltd. ("Maiden Holdings") and its subsidiaries (the "Company" or "Maiden"). They have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All significant intercompany transactions and accounts have been eliminated. These interim unaudited Condensed Consolidated Financial Statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim period and all such adjustments are of a normal recurring nature. The results of operations for the interim period are not necessarily indicative, if annualized, of those to be expected for the full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. These unaudited Condensed Consolidated Financial Statements, including these notes, should be read in conjunction with the Company's audited Consolidated Financial Statements, and related notes thereto, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Certain prior year comparatives have been reclassified for 2017 to conform to the 2018 presentation including as discussed below. The effect of these reclassifications had no impact on previously reported shareholders' equity or net income (loss). Discontinued Operations As part of the strategic review initiated by the Company's Board of Directors earlier in 2018, during the third quarter of 2018, the Company made the strategic decision to divest its U.S. reinsurance treaty operations. Except as explicitly described as held for sale or as discontinued operations, and unless otherwise noted, all discussions and amounts presented herein relate to the Company's continuing operations except for net loss, net loss attributable to Maiden and net loss attributable to Maiden common shareholders. Please see “Note 8. Discontinued Operations" for additional information related to discontinued operations. All prior years presented in the Condensed Consolidated Financial Statements have been reclassified to conform to this new presentation. Background On August 29, 2018, the Company announced that it had entered into a Renewal Rights Agreement ("Renewal Rights"), dated as of August 29, 2018, with Transatlantic Reinsurance Company ("TransRe"), pursuant to which the Company agreed to sell, and TransRe agreed to purchase, Maiden Reinsurance North America, Inc.'s ("Maiden US") rights to: (i) renew Maiden US’s treaty reinsurance agreements upon their expiration or cancellation, (ii) solicit renewals of and replacement coverages for the treaty reinsurance agreements and (iii) replicate and use the products and contract forms used in Maiden US’s business. The sale was consummated on August 29, 2018. The payment received for the sale of the Renewal Rights was $7,500 subject to potential additional amounts payable in the future in accordance with the agreement. On August 31, 2018, the Company announced that its subsidiary, Maiden Holdings North America, Ltd. ("Maiden NA"), entered into a sale agreement ("Master Transaction Agreement") dated as of August 31, 2018, with Enstar Group Limited ("Enstar"), pursuant to which Maiden NA agreed to sell, and Enstar agreed to purchase Maiden NA’s subsidiary Maiden US. Pursuant to and subject to the terms of the Master Transaction Agreement: (i)Maiden NA will sell, and Enstar will purchase, all of the share capital of Maiden US (the “Maiden US Sale”) for a price of $321,500, which is subject to certain closing adjustments; (ii)Cavello Bay Reinsurance Limited ("Cavello"), Enstar’s Bermuda reinsurance affiliate, and Maiden Reinsurance Ltd. ("Maiden Bermuda"), the Company’s Bermuda reinsurance subsidiary, will enter into a novation agreement pursuant to which certain assets and liabilities associated with the Company’s U.S. treaty reinsurance business held by Maiden Bermuda will be novated for a ceding commission payable by Maiden Bermuda of $12,250; (iii)Cavello and Maiden Bermuda will enter into a retrocession agreement pursuant to which certain assets and liabilities associated with the Motors Insurance business held by Maiden Bermuda will be retroceded to Cavello in exchange for a $1,750 ceding commission; and (iv)Maiden Bermuda will provide Enstar with adverse loss reserve development cover up to a maximum of $25,000 when losses are more than $100,000 in excess of the net loss and loss adjustment expenses recorded as of June 30, 2018, for no additional consideration. The transactions contemplated by the Master Transaction Agreement are expected to close in the fourth quarter of 2018 subject to regulatory approvals and customary closing conditions. The Company’s current analysis indicates that the conditions to redeem the 2013 Senior Notes as stipulated by the securities may exist. Should final analysis support such a conclusion, the Company expects to redeem all of the $152,500 2013 Senior Notes at that time pursuant to the terms of the underlying securities. The assets and liabilities related to the sale of Maiden US were classified as held for sale in the Condensed Consolidated Balance Sheets as at September 30, 2018 and reclassified as held for sale as at December 31, 2017. The operations of the Company's U.S. reinsurance treaty business have been reported as discontinued operations in the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2018 and 2017 since the Company has determined that the divestiture 1. Basis of Presentation (continued) represents a strategic shift that will have a major effect on its ongoing operations and financial results and all of the held for sale criteria have been met. Please refer to "Note 8. Discontinued Operations" for additional information regarding the effect of the reclassifications on the Company's Condensed Consolidated Financial Statements. Segments As a result of the strategic decision to divest all of the Company's U.S. treaty reinsurance operations noted above, the Company has revised the composition of its reportable segments. As described in more detail below under “Note 3. Segment Information”, the reportable segments include: (i) Diversified Reinsurance which consists of a portfolio of property and casualty reinsurance business focusing on regional and specialty property and casualty insurance companies located primarily in Europe; and (ii) AmTrust Reinsurance which includes all business ceded to the Company from subsidiaries of AmTrust Financial Services Inc. ("AmTrust"). In addition to these reportable segments, the results of operations of the former National General Holdings Corporation Quota Share ("NGHC Quota Share") segment is included in the "Other" category. All prior periods presented have been reclassified to conform to this new presentation. For the three and nine months ended September 30, 2018, the Company's AmTrust Reinsurance segment accounted for 93.5% and 93.2%, respectively (2017 - 94.8% and 95.5%, respectively), of the Company's total consolidated gross premiums written.
|
Significant Accounting Policies |
9 Months Ended |
|---|---|
Sep. 30, 2018 | |
| Accounting Policies [Abstract] | |
| Significant Accounting Policies | Significant Accounting Policies There have been no material changes to our significant accounting policies as described in our Annual Report on Form 10-K for the year ended December 31, 2017 except for the following: Recently Adopted Accounting Standards Updates Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2014-09 guidance that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our other insurance revenue activities. This guidance is effective for reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company has adopted the guidance in ASU 2014-09 on January 1, 2018. Our analysis of revenues for the three and nine months ended September 30, 2018 indicates that substantially all of our revenues are from sources not within the scope of the standard. The Company generates an insignificant amount of fee income which is reported under other insurance revenue in the Condensed Consolidated Statements of Income and is within the scope of ASU 2014-09. The Company’s current accounting policy for this revenue is to recognize fee income as earned when the related services are performed which is consistent with the guidance in this ASU. Other insurance revenue is currently less than 1% of total revenues so the expanded disclosure requirements mandated by this ASU are not required or deemed relevant due to materiality. As substantially all of our revenue sources are not within the scope of the standard, the adoption of the standard did not have a material effect on our reported condensed consolidated financial condition, results of operations or cash flows. Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09 to amend the guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The Company currently has a number of share based payment awards as disclosed in the Annual Report on Form 10-K for the year ended December 31, 2017. The adoption of this guidance on January 1, 2018 did not have an impact on the Company's Condensed Consolidated Financial Statements as no modifications were made in any of its current share based payment awards. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01 that will change how entities measure certain equity investments and present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. Under the new guidance, entities will have to measure many equity investments at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. This includes investments in partnerships, unincorporated joint ventures and limited liability companies that do not result in consolidation and are not accounted for under the equity method. Entities will no longer be able to recognize unrealized holding gains and losses on equity securities they classify today as available-for-sale ("AFS") in Accumulated Other Comprehensive Income ("AOCI"). The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this guidance on January 1, 2018 resulted in the recognition of $465 of net unrealized losses and $358 of net unrealized gains on our investments in limited partnerships within net income during the three and nine months ended September 30, 2018, respectively. Our investments in limited partnerships do not have a readily determinable fair value and therefore, the new guidance was adopted prospectively. Please refer to "Note 4. Investments (d) - Realized Gains on Investment" for additional information. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15 guidance to clarify how entities should classify certain cash receipts and cash payments on the statement of cash flows. The new guidance amends Accounting Standards Codification ("ASC") 230 Statement of Cash Flows, a principles based requiring judgment to determine the appropriate classification of cash flow as operating, investing or financing activities which created diversity in how certain cash receipts and cash payments were classified. The new guidance 2. Significant Accounting Policies (continued) clarifies that if a receipt or payment has aspects of more than one class of cash flows and cannot be separated, the classification will depend on the predominant source or use. While the new guidance attempts to clarify how the predominance principle should be applied, judgment will still be required. The guidance is effective for public business entities for annual periods beginning after December 15, 2017 and interim periods therein. Entities will have to apply the guidance retrospectively, but if it is impracticable to do so for an issue, the amendments related to that issue would be applied prospectively. The adoption of this guidance did not have any impact on the Company's results of operations, financial position or liquidity. Presentation of Restricted Cash in the Statement of Cash Flows In November 2016, the FASB issued ASU 2016-18 guidance that require entities to show the changes in the total cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. This reconciliation can be presented either on the face of the statement of cash flows or in the notes to the financial statements. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company adopted this guidance on January 1, 2018. The adoption of this guidance did not have a material effect on the Company's consolidated financial condition, results of operations and disclosures, other than the presentation of restricted cash and cash equivalents in the statement of cash flows. The financial impact in the consolidated statements of cash flows has eliminated the presentation of changes in restricted cash and cash equivalents from cash flows from investing activities. Therefore, changes that result from transfers between cash, cash equivalents, and restricted cash and cash equivalents are no longer presented as cash flow activities in the statement of cash flows. Additionally, a reconciliation between the statement of financial position and the statement of cash flows has been disclosed to show the movement in cash and cash equivalents and restricted cash and cash equivalents from the prior period. Recently Issued Accounting Standards Not Yet Adopted Improvements to Non-employee Share-Based Payment Accounting In June 2018, the FASB issued ASU 2018-07 guidance that simplifies the accounting for share-based payments granted to non-employees for goods and services. Under the guidance, most of the guidance on such payments to non-employees would be aligned with the requirements for share-based payments granted to employees as the board viewed the awards to both employees and non-employees to be economically similar and that two different accounting models are not justified. Under the new guidance, i) non-employee share-based payment awards should be measured at the grant date fair value rather than the fair value of the consideration received or the fair value of the equity instruments issued, whichever can be more reliably measured, ii) the measurement date for equity classified non-employee share-based payment awards is at the grant date and not the earlier of the date at which a commitment for performance by the counterparty is reached and the date at which the counterparty's performance is complete, and iii) entities should consider the probability of satisfying the performance conditions when awards contain such conditions. The amendments in this guidance are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but not earlier than an entity's adoption date of Topic 606. The Company is currently evaluating the impact of this guidance on the Company's results of operations and financial position; however, it is not expected to have a material impact on the Company’s Consolidated Financial Statements. Codification Improvements In July 2018, the FASB issued ASU 2018-09 which includes clarifications to existing codifications or corrections of unintended application of guidance that is not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments in this update include items raised for board consideration through the codification's feedback system that met the scope of this project, making due process necessary. The amendments affect a wide variety of topics in the codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance. None of the topics deemed applicable have a material impact in the Company's interim consolidated financial statements. However, the Company is currently evaluating the impact of applicable sections on its results of operations and financial position once those sections are adopted beginning after December 15, 2018. Codification Improvements to Topic 842, Leases In July 2018, the FASB issued ASU 2018-11 for targeted improvements related to Update 2016-02 which provides entities with an additional transition method to apply the new standard. Under the new optional transition method, an entity initially applies ASC 842 at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Updates related to Topic 842 become effective for the Company during the first quarter of 2019 and will be applied using a modified retrospective approach. The Company intends to elect the new transition method permitted by ASU No. 2018-11. The Company's future minimum lease payments, which represent minimum annual rental commitments excluding taxes, insurance and other operating costs for non-cancellable operating leases, and which will be subject to this new guidance, will be recorded on the Company's consolidated balance sheets as a lease liability with a corresponding right-of-use asset. However, under this guidance, the Company shall continue to recognize the related leasing expense within net income. Therefore, adoption of this standard will impact the Company’s consolidated balance sheets but is not expected to have a material impact on the Company’s results of operations or cash flows. 2. Significant Accounting Policies (continued) Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13 for changes to the disclosure framework related to Topic 820 which amends the disclosure requirements for fair value measurement. The following disclosure requirements were removed from Topic 820: (i) amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (ii) policy for timing of transfers between levels, and (iii) valuation processes for Level 3 fair value measurements. The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The following disclosure requirements were added to Topic 820: (i) changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and (ii) range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this Update and delay adoption of the additional disclosures until their effective date. These amendments only impact disclosures made in "Note 5. Fair Value Measurements" therefore, the adoption of this standard will not impact the Company’s consolidated balance sheets, results of operations or cash flows.
|
Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Information | Segment Information The Company currently has two reportable segments: Diversified Reinsurance and AmTrust Reinsurance. Our Diversified Reinsurance segment consists of a portfolio of predominantly property and casualty reinsurance business focusing on regional and specialty property and casualty insurance companies located primarily in Europe. Our AmTrust Reinsurance segment includes all business ceded to our wholly owned subsidiary, Maiden Bermuda, from AmTrust, primarily the AmTrust Quota Share and the European Hospital Liability Quota Share. In addition to our reportable segments, the results of operations of the former NGHC Quota Share segment have been included in the "Other" category. Please refer to "Note 10. Related Party Transactions" for additional information. As a result of the strategic decision to divest all of the Company's U.S. treaty reinsurance operations as discussed in "Note 1. Basis of Presentation" and "Note 8. Discontinued Operations", the Company has revised the composition of its reportable segments. Previously, the underwriting results associated with the discontinued operations of the Company's U.S. treaty reinsurance business were included within the Diversified Reinsurance segment and the operating results associated with the remnants of the U.S. excess and surplus business were included within the Other category. These are now excluded and all prior periods presented have been reclassified to conform to this new presentation. The Company evaluates segment performance based on segment profit separately from the results of our investment portfolio. General and administrative expenses are allocated to the segments on an actual basis except salaries and benefits where management’s judgment is applied. The Company does not allocate general corporate expenses to the segments. In determining total assets by reportable segment, the Company identifies those assets that are attributable to a particular segment such as reinsurance balances receivable, deferred commission and other acquisition expenses, loans, restricted cash and cash equivalents and investments and reinsurance recoverable on paid and unpaid losses, unearned reinsurance premiums ceded and funds withheld receivable (presented as part of other assets in the Condensed Consolidated Balance Sheet). All remaining assets are allocated to Corporate. The following tables summarize our reporting segment's underwriting results and the reconciliation of our reportable segments and Other category's underwriting results to our consolidated net loss from continuing operations: 3. Segment Information (continued)
3. Segment Information (continued)
3. Segment Information (continued)
3. Segment Information (continued)
The following tables summarize the financial position of our reportable segments including the reconciliation to our consolidated assets at September 30, 2018 and December 31, 2017:
3. Segment Information (continued) The following tables set forth financial information relating to net premiums written by major line of business and reportable segment for the three and nine months ended September 30, 2018 and 2017:
The following tables set forth financial information relating to net premiums earned by major line of business and reportable segment for the three and nine months ended September 30, 2018 and 2017:
3. Segment Information (continued)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments | Investments
The original or amortized cost, estimated fair value and gross unrealized gains and losses of fixed maturities at September 30, 2018 and December 31, 2017 are as follows:
During the nine months ended September 30, 2018, we did not designate any additional fixed maturities as HTM. During 2017, we designated additional fixed maturities with a fair value of $391,934 as HTM reflecting our intent to hold these securities to maturity. The net unrealized holding gain of $4,313 as at the designation date continues to be reported in the carrying value of the HTM securities and is amortized through other comprehensive income over the remaining life of the securities using the effective yield method in a manner consistent with the amortization of any premium or discount. 4. Investments (continued) The contractual maturities of our fixed maturities are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
The following tables summarize fixed maturities in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:
At September 30, 2018, there were approximately 406 securities in an unrealized loss position with a fair value of $3,801,295 and unrealized losses of $115,283. Of these securities, there were 99 securities that have been in an unrealized loss position for 12 months or greater with a fair value of $867,678 and unrealized losses of $54,810.
4. Investments (continued) At December 31, 2017, there were approximately 156 securities in an unrealized loss position with a fair value of $1,513,470 and unrealized losses of $31,074. Of these securities, there were 89 securities that have been in an unrealized loss position for 12 months or greater with a fair value of $646,140 and unrealized losses of $23,953. Other-than-temporarily impaired ("OTTI") The Company performs quarterly reviews of its fixed maturities in order to determine whether declines in fair value below the amortized cost basis were considered other-than-temporary in accordance with applicable guidance. At September 30, 2018, we have determined that the unrealized losses on fixed maturities were primarily due to interest rates rising as well as the impact of foreign exchange rate changes on certain foreign currency denominated AFS fixed maturities since their date of purchase. All fixed maturity securities in the investment portfolio continue to pay the expected coupon payments under the contractual terms of the securities. Any credit-related impairment related to fixed maturity securities that the Company does not plan to sell and for which the Company is not more likely than not to be required to sell is recognized in net earnings, with the non-credit related impairment recognized in comprehensive earnings. Based on our analysis, our fixed maturity portfolio is of high credit quality and we believe we will recover the amortized cost basis of our fixed maturity securities. We continually monitor the credit quality of our fixed maturity investments to assess if it is probable that we will receive our contractual or estimated cash flows in the form of principal and interest. For the three and nine months ended September 30, 2018, we recognized $479 in OTTI charges in earnings on one fixed maturity security. Comparatively, there were no OTTI losses recognized in earnings on the fixed maturity portfolio in the three and nine months ended September 30, 2017. The following summarizes the credit ratings of our fixed maturities:
The table below shows our portfolio of other investments:
The Company has a remaining unfunded commitment on its investment in limited partnerships of approximately $414 at September 30, 2018 (December 31, 2017 - $306). 4. Investments (continued) The Company also has a remaining unfunded commitment on its other investments of approximately $7,468 at September 30, 2018. There were no such commitments outstanding at December 31, 2017.
Net investment income was derived from the following sources:
Realized gains or losses on the sale of investments are determined on the basis of the first in first out cost method. The following provides an analysis of net realized gains on investment included in the Condensed Consolidated Statements of Income:
Proceeds from sales of AFS fixed maturities were $20,198 and $185,089 for the three and nine months ended September 30, 2018, respectively (2017 - $30,440 and $116,306, respectively). 4. Investments (continued) Net unrealized (losses) gains on investments, including those allocated to discontinued operations and classified as held for sale, were as follows:
The portion of unrealized gains recognized in net income for the three and nine months ended September 30, 2018 and 2017 that are related to other investments still held at the end of the reporting period were as follows:
We are required to maintain assets on deposit to support our reinsurance operations and to serve as collateral for our reinsurance liabilities under various reinsurance agreements. We also utilize trust accounts to collateralize business with our reinsurance counterparties. These trust accounts generally take the place of letter of credit requirements. The assets in trust as collateral are primarily cash and highly rated fixed maturities. The fair value of our restricted assets was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value of Financial Instruments | Fair Value of Financial Instruments (a) Fair Values of Financial Instruments Fair Value Measurements — ASC Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820") defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between open market participants at the measurement date. Additionally, ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows:
5. Fair Value of Financial Instruments (continued) of these products does not entail a significant degree of judgment. Examples of assets and liabilities utilizing Level 1 inputs include: U.S. Treasury bonds;
The availability of observable inputs can vary and is affected by a wide variety of factors, including, for example, the type of financial instrument, whether the financial instrument is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires significantly more judgment. Accordingly, the degree of judgment exercised by management in determining fair value is greatest for instruments categorized in Level 3. We use prices and inputs that are current at the measurement date. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified between levels. For investments that have quoted market prices in active markets, the Company uses the quoted market prices as fair value and includes these prices in the amounts disclosed in the Level 1 hierarchy. The Company receives the quoted market prices from a third party nationally recognized provider, the Pricing Service. When quoted market prices are unavailable, the Company utilizes the Pricing Service to determine an estimate of fair value. The fair value estimates are included in the Level 2 hierarchy. The Company will challenge any prices for its investments which are considered not to be representation of fair value. If quoted market prices and an estimate from the Pricing Service are unavailable, the Company produces an estimate of fair value based on dealer quotations for recent activity in positions with the same or similar characteristics to that being valued or through consensus pricing of a pricing service. The Company determines whether the fair value estimate is in the Level 2 or Level 3 hierarchy depending on the level of observable inputs available when estimating the fair value. The Company bases its estimates of fair values for assets on the bid price as it represents what a third party market participant would be willing to pay in an orderly transaction. ASC 825, "Disclosure About Fair Value of Financial Instruments", requires all entities to disclose the fair value of their financial instruments, both assets and liabilities recognized and not recognized in the balance sheet, for which it is practicable to estimate fair value. The following describes the valuation techniques used by the Company to determine the fair value of financial instruments held at September 30, 2018 and December 31, 2017. U.S. government and U.S. agency — Bonds issued by the U.S. Treasury, the Federal Home Loan Bank, the Federal Home Loan Mortgage Corporation, Government National Mortgage Association, Federal National Mortgage Association and the Federal Farm Credit Banks Funding Corporation. The fair values of U.S. treasury bonds are based on quoted market prices in active markets, and are included in the Level 1 fair value hierarchy. We believe the market for U.S. treasury bonds is an actively traded market given the high level of daily trading volume. The fair values of U.S. agency bonds are determined using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads for these securities are observable market inputs, the fair values of U.S. agency bonds are included in the Level 2 fair value hierarchy. Non-U.S. government and supranational bonds — These securities are generally priced by independent pricing services. The Pricing Service may use current market trades for securities with similar quality, maturity and coupon. If no such trades are available, the Pricing Service typically uses analytical models which may incorporate spreads, interest rate data and market/sector news. As the significant inputs used to price non-U.S. government and supranational bonds are observable market inputs, the fair values of non-U.S. government and supranational bonds are included in the Level 2 fair value hierarchy. Asset-backed securities — These securities comprise CMBS and CLO originated by a variety of financial institutions that on acquisition are rated BBB-/Baa3 or higher. These securities are priced by independent pricing services and brokers. The pricing provider applies dealer quotes and other available trade information, prepayment speeds, yield curves and credit spreads to the valuation. As the significant inputs used to price the CMBS and CLO are observable market inputs, the fair value of the CMBS and CLO securities are included in the Level 2 fair value hierarchy. Corporate bonds — Bonds issued by corporations that on acquisition are rated BBB-/Baa3 or higher. These securities are generally priced by independent pricing services. The spreads are sourced from broker/dealers, trade prices and the new issue market. Where pricing is unavailable from pricing services, we obtain non-binding quotes from broker-dealers. As the significant inputs used to price corporate bonds are observable market inputs, the fair values of corporate bonds are included in the Level 2 fair value hierarchy. Municipal bonds — Bonds issued by U.S. state and municipality entities or agencies. The fair values of municipal bonds are generally priced by independent pricing services. The pricing services typically use spreads obtained from broker-dealers, trade prices and the new issue market. As the significant inputs used to price the municipal bonds are observable market inputs, municipal bonds are included in the Level 2 fair value hierarchy. 5. Fair Value of Financial Instruments (continued) Other investments — Includes unquoted investments comprised of investments in limited partnerships and other investments which includes investments in lending vehicles as well as investments in start-up insurance entities. The fair values of the limited partnerships are determined by the fund manager based on recent filings, operating results, balance sheet stability, growth and other business and market sector fundamentals. The fair value of these investments are measured using the NAV practical expedient and therefore have not been categorized within the fair value hierarchy. If there is a reporting lag between the current period end and reporting date of the latest available fund valuation, we estimate fair values by starting with the most recently available valuation and adjusting for return estimates as well as any subscriptions and distributions that took place during the current period. The fair value of the other investments, including those investments in lending vehicles and start-up insurance entities, was determined using recent private market transactions and as such, the fair value is included in the Level 3 fair value hierarchy. Cash and cash equivalents (including restricted amounts), accrued investment income, reinsurance balances receivable, and certain other assets and liabilities — The carrying values reported in the Condensed Consolidated Balance Sheets for these financial instruments approximate their fair value due to their short term nature and are classified as Level 2. Loan to related party — The carrying value reported in the Condensed Consolidated Balance Sheets for this financial instrument approximates its fair value and it is included in the Level 2 hierarchy. Senior notes — The amount reported in the Condensed Consolidated Balance Sheets for these financial instruments represents the carrying value of the notes. The fair values are based on indicative market pricing obtained from a third-party service provider and as such, are included in the Level 2 hierarchy. (b) Fair Value Hierarchy The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in ASC 820. The framework is based on the inputs used in valuation and gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the ASC 820 hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. At September 30, 2018 and December 31, 2017, we classified our financial instruments measured at fair value on a recurring basis in the following valuation hierarchy:
5. Fair Value of Financial Instruments (continued)
The Company utilizes a Pricing Service to assist in determining the fair value of our investments; however, management is ultimately responsible for all fair values presented in the Company’s financial statements. This includes responsibility for monitoring the fair value process, ensuring objective and reliable valuation practices and pricing of assets and liabilities and pricing sources. The Company analyzes and reviews the information and prices received from the Pricing Service to ensure that the prices represent a reasonable estimate of the fair value. The Pricing Service was utilized to estimate fair value measurements for 100.0% and 99.8% of our fixed maturities at September 30, 2018 and December 31, 2017, respectively. The Pricing Service utilizes market quotations for fixed maturity securities that have quoted market prices in active markets. Since fixed maturities other than U.S. treasury bonds generally do not trade actively on a daily basis, the Pricing Service prepares estimates of fair value measurements using relevant market data, benchmark curves, sector groupings and matrix pricing and these have been classified as Level 2. At December 31, 2017, 0.2% of the fixed maturities are valued using the market approach. Three securities or approximately $9,489 of Level 2 fixed maturities, were priced using a quotation from a broker and/or custodian as opposed to the Pricing Service due to lack of information available. At September 30, 2018 and December 31, 2017, we have not adjusted any pricing provided to us based on the review performed by our investment managers. There were no transfers between Level 1 and Level 2 and there were no transfers to or from Level 3 during the periods represented by these Condensed Consolidated Financial Statements. (c) Level 3 Financial Instruments At September 30, 2018, the Company has other investments of $19,032 (December 31, 2017 - $1,500) including investments in lending vehicles as well as investments in start-up insurance entities, the fair value of each was determined using recent private market transactions. Due to the significant unobservable inputs in these valuations, the Company includes the estimate of the fair value of these unquoted investments as Level 3. During the three and nine months ended September 30, 2018 and 2017, there have been no transfers into or out of Level 3. (d) Financial Instruments not measured at Fair Value The following table presents the fair value and carrying value or principal amount of the financial instruments not measured at fair value:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets | Goodwill and Intangible Assets The goodwill and intangible assets are assigned to our Diversified Reinsurance segment. The following table shows the change in the carrying value of goodwill and intangible assets held:
The goodwill and intangible assets are subject to annual impairment testing on October 1 or when “triggering events” occur or circumstances change that could potentially reduce the fair value of a reporting unit below its carrying amount. Goodwill is considered impaired if the carrying amount of the reporting unit exceeds the fair value. The announced sale of our U.S. treaty reinsurance operations resulted in a triggering event and consequently during the three and nine months ended September 30, 2018, the Company has written off the remaining balance of goodwill and intangible assets. The goodwill and intangible assets were deemed to be permanently impaired due to the sale of the U.S. treaty reinsurance renewal rights and the anticipated sale of the U.S. Diversified Reinsurance business. Please refer to "Note 8. Discontinued Operations" for further details of this disposal. The Company recognized an impairment loss of $74,196 as a result of these dispositions, which is presented in the Condensed Consolidated Statements of Income as part of the loss from discontinued operations for the three and nine months ended September 30, 2018. No impairment was recorded during the same periods in 2017. The following tables show the analysis of goodwill and intangible assets classified as held for sale at September 30, 2018 and December 31, 2017 (please refer to "Note 8. Discontinued Operations" for further details):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt | Long-Term Debt Senior Notes At September 30, 2018 and December 31, 2017, Maiden Holdings and its wholly owned subsidiary, Maiden NA, both have an outstanding public debt offering of senior notes, (the "Senior Notes"). The 2013 Senior Notes issued by the subsidiary are fully and unconditionally guaranteed by Maiden Holdings. The Senior Notes are unsecured and unsubordinated obligations of the Company. As discussed in "Note 1. Basis of Presentation", the transactions contemplated by the Master Transaction Agreement are expected to close in the fourth quarter of 2018 subject to regulatory approvals and customary closing conditions. The Company’s current analysis indicates that the conditions to redeem the 2013 Senior Notes as stipulated by the securities may exist. Should final analysis support such a conclusion, the Company expects to redeem all of the $152,500 2013 Senior Notes at that time pursuant to the terms of the underlying securities. 7. Long-Term Debt (continued) The following table details the Company's Senior Notes issuances as of September 30, 2018 and December 31, 2017:
The interest expense incurred on the Senior Notes for the three and nine months ended September 30, 2018 was $4,776 and $14,329, respectively (2017 - $4,776 and $18,218, respectively) of which $1,342 was accrued at September 30, 2018 and December 31, 2017, respectively. The issuance costs related to the Senior Notes were capitalized and are being amortized over the life of the Senior Notes. The amount of amortization expense for the three and nine months ended September 30, 2018 was $53 and $158, respectively (2017 - $53 and $212, respectively). On June 27, 2017, we fully redeemed all of the 2012 Senior Notes using a portion of the proceeds from the Preference Shares - Series D issuance as previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2017. The 2012 Senior Notes were redeemed at a redemption price equal to 100% of the principal amount of $100,000 plus accrued and unpaid interest on the principal amount being redeemed up to, but not including, the redemption date. As a result, the Company accelerated the amortization of the remaining 2012 Senior Note issuance cost of $2,809 for the nine months ended September 30, 2017.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discontinued Operations | Discontinued Operations Sale of U.S. Treaty Reinsurance operations As described in "Note 1. Basis of Presentation", on August 29, 2018, the Company entered into a Renewal Rights transaction with TransRe. The Company continues to earn premiums and remain liable for losses occurring subsequent to August 29, 2018 for any policies in force prior to and as of August 29, 2018, until those policies expire. Subsequently, on August 31, 2018, the Company entered into a Master Transaction Agreement with Enstar. The Company estimated the fair value of the net assets held for sale to be based on the estimated selling price less costs to sell and was classified as Level 2 within the fair value hierarchy as of September 30, 2018. The classes of assets and liabilities to be sold and classified as held for sale as of September 30, 2018 and December 31, 2017 consist of the following: 8. Discontinued Operations (continued)
The following table summarizes the major classes of line items constituting the total loss from discontinued operations for the three and nine months ended September 30, 2018 and 2017, respectively, in which the results of operations of the discontinued operations are presented in the Condensed Consolidated Statements of Income:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for Loss and Loss Adjustment Expenses |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insurance [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reserve for Loss and Loss Adjustment Expenses | Reserve for Loss and Loss Adjustment Expenses The Company uses both historical experience and industry-wide loss development factors to provide a reasonable basis for estimating future losses. In the future, certain events may be beyond the control of management, such as changes in law, judicial interpretations of law, and inflation, which may favorably or unfavorably impact the ultimate settlement of the Company’s loss and LAE reserves. The anticipated effect of inflation is implicitly considered when estimating liabilities for loss and LAE. While anticipated changes in claim costs due to inflation are considered in estimating the ultimate claim costs, changes in average severity of claims are caused by a number of factors that vary with the individual type of policy written. Ultimate losses are projected based on historical trends adjusted for implemented changes in underwriting standards, policy provisions, and general economic trends. Those anticipated trends are monitored based on actual development and are modified if necessary. The reserving process begins with the collection and analysis of paid losses and incurred claims data for each of our contracts. While reserves are reviewed on a contract by contract basis, paid losses and incurred claims data is also aggregated into reserving segments. The segmental data is disaggregated by reserving class and further disaggregated by either accident year (i.e. the year in which the loss event occurred) or by underwriting year (i.e. the year in which the contract generating the premium and losses incepted). The Company uses underwriting year information to analyze our Diversified Reinsurance segment and subsequently allocate reserves to the respective accident years. Our reserve for loss and LAE comprises:
The following table represents a reconciliation of our beginning and ending gross and net loss and LAE reserves:
Effective July 1, 2018, Maiden Bermuda commuted its retrocessional quota share agreements with a highly rated global insurer which incepted on January 1, 2015. Prior period development arises from changes to loss estimates recognized in the current year that relate to loss reserves in previous calendar years. The development reflects changes in management's best estimate of the ultimate losses under the relevant reinsurance policies after review of changes in actuarial assessments. During the three and nine months ended September 30, 2018, the Company recognized approximately $212,473 and $250,451, respectively (2017 - $64,044 and $111,192, respectively) of net adverse development in both the Diversified Reinsurance and AmTrust Reinsurance segments as well as in its run-off business. In the Diversified Reinsurance segment, the adverse prior year loss development was $671 and $1,756, respectively for the three and nine months ended September 30, 2018 (2017 - $1,079 and $8,482, respectively) primarily due to adverse prior year loss development in facultative reinsurance run-off partially offset by favorable development in International Auto. 9. Reserve for Loss and Loss Adjustment Expenses (continued) In the AmTrust Reinsurance segment, the adverse prior year loss development was $210,433 and $247,326 for the three and nine months ended September 30, 2018, respectively (2017 - $61,127 and $100,872, respectively). The 2018 development was largely from Workers Compensation which represented nearly half of the adverse development and was primarily driven by accident years 2014 to 2017, and to a lesser extent, development in European hospital liability and Commercial Auto and General Liability lines of business. The development in 2017 was primarily due to Worker's Compensation, General liability as well as Commercial Auto liability lines of business for both Specialty Programs and Small Commercial Business where elevated loss activity had been observed. Our Other category also incurred adverse prior year loss development of $1,369 for both the three and nine months ended September 30, 2018 (2017 - $1,838 and $1,838, respectively) due to increased reserves in the run-off of the NGHC Quota Share Reinsurance Agreement.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions | Related Party Transactions The Founding Shareholders of the Company are Michael Karfunkel, George Karfunkel and Barry Zyskind. Michael Karfunkel passed away on April 27, 2016. Based on each individual's most recent public filing, Leah Karfunkel (wife of Michael Karfunkel) owns or controls approximately 8.2% of the outstanding shares of the Company and Barry Zyskind (the Company's non-executive chairman) owns or controls approximately 7.7% of the outstanding shares of the Company. George Karfunkel owns or controls less than 5.0% of the outstanding shares of the Company. Leah Karfunkel and George Karfunkel are directors of AmTrust, and Barry Zyskind is the president, chief executive officer and chairman of AmTrust. Leah Karfunkel, George Karfunkel and Barry Zyskind own or control approximately 44.0% of the outstanding shares of AmTrust. AmTrust owns 1.6% of the issued and outstanding shares of National General Holdings Corporation ("NGHC"), and Leah Karfunkel and the Michael Karfunkel 2005 Family Trust (which is controlled by Leah Karfunkel) owns 41.7% of the outstanding common shares of NGHC. AmTrust The following describes transactions between the Company and AmTrust: AmTrust Quota Share Reinsurance Agreement Effective July 1, 2007, the Company and AmTrust entered into a master agreement, as amended (the "Master Agreement"), by which they caused Maiden Bermuda, a wholly owned subsidiary of the Company, and AmTrust's Bermuda reinsurance subsidiary, AmTrust International Insurance, Ltd. ("AII"), to enter into a quota share reinsurance agreement (the "Reinsurance Agreement") by which AII retrocedes to Maiden Bermuda an amount equal to 40% of the premium written by subsidiaries of AmTrust, net of the cost of unaffiliated inuring reinsurance and 40% of losses. The Master Agreement further provided that AII receives a ceding commission of 31% of ceded written premiums. On June 11, 2008, Maiden Bermuda and AII amended the Reinsurance Agreement to add Retail Commercial Package Business to the Covered Business. AII receives a ceding commission of 34.375% on Retail Commercial Package Business. On July 1, 2016, the agreement was renewed through June 30, 2019. The agreement automatically renews for successive three-year periods thereafter unless AII or Maiden Bermuda elects to so terminate the Reinsurance Agreement by giving written notice to the other party not less than five months prior to July 1, 2019 or not less than nine months prior to the expiration of any successive three-year period. Either party is entitled to terminate on thirty days' notice or less upon the occurrence of certain early termination events, which include a default in payment, insolvency, change in control of AII or Maiden Bermuda, run-off, or a reduction of 50% or more of the shareholders' equity of Maiden Bermuda or the combined shareholders' equity of AII and the AmTrust subsidiaries. On August 8, 2018, the Company’s and AmTrust’s Board of Directors agreed to extend the renewal provision for the Quota Share Reinsurance Agreement between Maiden Bermuda and AII. The new written notice date for renewal of the agreement has been extended from September 30, 2018 to January 31, 2019. Effective July 1, 2018, the amount AEL cedes to the Company was reduced to 20%. Additionally, for the Specialty Program portion of Covered Business only, AII will be responsible for ultimate net loss otherwise recoverable from Maiden Bermuda to the extent that the loss ratio to Maiden Bermuda, which shall be determined on an inception to date basis from July 1, 2007 through the date of calculation, is between 81.5% and 95%. Above and below the defined corridor, Maiden Bermuda will continue to reinsure losses at its proportional 40% share per the Reinsurance Agreement. AmTrust European Hospital Liability Quota Share Agreement ("European Hospital Liability Quota Share") Effective April 1, 2011, Maiden Bermuda, entered into a quota share reinsurance contract with AEL and AmTrust International Underwriters Limited ("AIUL"), both wholly owned subsidiaries of AmTrust. Pursuant to the terms of the contract, Maiden Bermuda assumed 40% of the premiums and losses related to policies classified as European Hospital Liability, including associated liability coverages and policies covering physician defense costs, written or renewed on or after April 1, 2011. The contract also covers policies written or renewed on or before March 31, 2011, but only with respect to losses that occur, accrue or arise on or after April 1, 2011. The maximum limit of liability attaching shall be €5,000 (€10,000 effective January 1, 2012) or currency equivalent (on a 100% basis) per original claim for any one original policy. Maiden Bermuda will pay a ceding commission of 5%. The agreement is renewed through March 31, 2019 and can be terminated at any April 1 by either party on four months notice. Effective July 1, 2016, the contract was amended such that Maiden Bermuda assumes from AEL 32.5% of the premiums and losses of all policies written or renewed on or after July 1, 2016 until June 30, 2017 and 20% of all policies written or renewed on or after July 1, 2017. 10. Related Party Transactions (continued) The table below shows the effect of both of these quota share arrangements with AmTrust on the Company's results of operations for the three and nine months ended September 30, 2018 and 2017:
Collateral provided to AmTrust a) AmTrust Quota Share Reinsurance Agreement In order to provide AmTrust's U.S. insurance subsidiaries with credit for reinsurance on their statutory financial statements, AII, as the direct reinsurer of the AmTrust's insurance subsidiaries, has established trust accounts ("Trust Accounts") for their benefit. Maiden Bermuda has agreed to provide appropriate collateral to secure its proportional share under the Reinsurance Agreement of AII's obligations to the AmTrust subsidiaries to whom AII is required to provide collateral. This collateral may be in the form of (a) assets loaned by Maiden Bermuda to AII for deposit into the Trust Accounts, pursuant to a loan agreement between those parties, (b) assets transferred by Maiden Bermuda for deposit into the Trust Accounts, (c) a letter of credit obtained by Maiden Bermuda and delivered to an AmTrust subsidiary on AII's behalf, or (d) premiums withheld by an AmTrust subsidiary at Maiden Bermuda's request in lieu of remitting such premiums to AII. Maiden Bermuda may provide any or a combination of these forms of collateral, provided that the aggregate value thereof equals Maiden Bermuda's proportionate share of its obligations under the Reinsurance Agreement with AII. Maiden Bermuda satisfied its collateral requirements under the Reinsurance Agreement with AII as follows: •by lending funds in the amount of $167,975 at September 30, 2018 and December 31, 2017 pursuant to a loan agreement entered into between those parties. Advances under the loan, are secured by promissory notes. Effective December 18, 2017, the maturity date with respect to each advance shall be the earliest of (i) June 30, 2019, (ii) such time as there are no remaining obligations due to AmTrust under the Reinsurance Agreement in respect of which such advance was originally made or (iii) such time as AII is no longer required to secure its proportionate share of such obligations. This loan was assigned by AII to AmTrust effective December 31, 2014 and is carried at cost. Effective December 18, 2017, interest is payable at a rate equivalent to the Federal Funds Effective Rate ("Fed Funds") plus 200 basis points per annum. Prior to that date, the interest was payable at a rate equivalent to the one-month LIBOR plus 90 basis points per annum; and •effective December 1, 2008, the Company entered into a Reinsurer Trust Assets Collateral agreement to provide to AII sufficient collateral to secure its proportional share of AII's obligations to the U.S. AmTrust subsidiaries. The amount of the collateral at September 30, 2018 was approximately $3,351,365 (December 31, 2017 - $3,328,757) and the accrued interest was $22,391 (December 31, 2017 - $20,830). Please refer to "Note 4. (e) Investments" for additional information. b) European Hospital Liability Quota Share AEL requested that Maiden Bermuda provide collateral to secure its proportional share under the European Hospital Liability Quota Share agreement. Please refer to "Note 4. (e) Investments" for additional information. Brokerage Agreement Effective July 1, 2007, the Company entered into a reinsurance brokerage agreement with AII Reinsurance Broker Ltd. ("AIIB"), a wholly owned subsidiary of AmTrust. Pursuant to the brokerage agreement, AIIB provides brokerage services relating to the Reinsurance Agreement and the European Hospital Liability Quota Share agreement for a fee equal to 1.25% of the premium assumed. AIIB is not the Company's exclusive broker. The agreement may be terminated upon 30 days written notice by either party. Maiden Bermuda recorded approximately $6,145 and $18,408 of reinsurance brokerage expense for the three and nine months ended September 30, 2018, respectively (2017 - $5,642 and $18,662, respectively) and deferred reinsurance brokerage of $15,297 at September 30, 2018 (December 31, 2017 - $14,741) as a result of this agreement. Asset Management Agreement Effective July 1, 2007, the Company entered into an asset management agreement with AII Insurance Management Limited ("AIIM"), a wholly owned subsidiary of AmTrust, pursuant to which AIIM has agreed to provide investment management services to the Company. Effective January 1, 2018, AIIM provides investment management services for a quarterly fee of 0.02125% of the average value of the account. Prior to that date, the fee was payable at a rate of 0.0375%. The agreement may be terminated upon 30 days written notice by either party. The Company recorded approximately $1,055 and $3,137 of investment management fees for the three and nine months ended September 30, 2018, respectively (2017 - $1,927 and $5,586, respectively) as a result of this agreement. 10. Related Party Transactions (continued) Other The Company entered into time sharing agreements for the lease of aircraft owned by AmTrust Underwriters, Inc. ("AUI"), a wholly owned subsidiary of AmTrust, and by AmTrust on March 1, 2011 and November 5, 2014, respectively. The agreements automatically renew for successive one-year terms unless terminated in accordance with the provisions of the agreements. Pursuant to the agreements, the Company will reimburse AUI and AmTrust for actual expenses incurred as allowed by Federal Aviation Regulations. For the three and nine months ended September 30, 2018, the Company recorded an expense of $21 and $54, respectively (2017 - $0 and $39, respectively) for the use of the aircraft. NGHC Quota Share Maiden Bermuda, effective March 1, 2010, had a 50% participation in the NGHC Quota Share, by which it received 25% of net premiums of the personal lines automobile business and assumed 25% of the related net losses. On August 1, 2013, the Company received notice from NGHC of the termination of the NGHC Quota Share effective on that date. The Company and NGHC mutually agreed that the termination is on a run-off basis.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies | Commitments and Contingencies
At September 30, 2018 and December 31, 2017, the Company’s assets where significant concentrations of credit risk may exist include investments, cash and cash equivalents, loan to related party, reinsurance balances receivable and reinsurance recoverable on unpaid losses (presented as part of other assets in the Condensed Consolidated Balance Sheet). The Company's reinsurance recoverable on unpaid losses balance at September 30, 2018 was $1,811 (December 31, 2017 - $24,883). At September 30, 2018, 94.6% (December 31, 2017 - 99.5%) of the reinsurance recoverable on unpaid losses was due from reinsurers and retrocessionaires with credit ratings from A.M Best of A+ or better. At September 30, 2018 and December 31, 2017, the Company had no valuation allowance against reinsurance recoverable on unpaid losses. The Company manages concentration of credit risk in the investment portfolio through issuer and sector exposure limitations. The Company believes it bears minimal credit risk in its cash on deposit. The Company also monitors the credit risk related to the loan to related party and its reinsurance balances receivable. To mitigate credit risk, we generally have a contractual right of offset thereby allowing us to settle claims net of any premiums or loan receivable. The Company believes these balances as at September 30, 2018 will be fully collectible.
During the three and nine months ended September 30, 2018, our gross premiums written from AmTrust accounted for $452,795 or 93.5% and $1,518,208 or 93.2%, respectively, of our total gross premiums written (2017 – $420,019 or 94.8% and $1,575,677 or 95.5%, respectively).
On August 8, 2018, the Company's Board of Directors authorized the following quarterly dividend:
As discussed in "Note 1. Basis of Presentation", the transactions contemplated by the Master Transaction Agreement are expected to close in the fourth quarter of 2018 subject to regulatory approvals and customary closing conditions. The Company's current analysis indicates that the conditions to redeem the 2013 Senior Notes as stipulated by the securities may exist. Should final analysis support such a conclusion, the Company expects to redeem all of the $152,500 2013 Senior Notes at that time pursuant to the terms of the underlying securities.
Except as noted below, the Company is not a party to any material legal proceedings. From time to time, the Company is subject to routine legal proceedings, including arbitrations, arising in the ordinary course of business. These legal proceedings generally relate to claims asserted by or against the Company in the ordinary course of insurance or reinsurance operations. Based on the Company's opinion, the eventual outcome of these legal proceedings is not expected to have a material adverse effect on its financial condition or results of operations. In April 2009, the Company learned that Bentzion S. Turin, the former Chief Operating Officer, General Counsel and Secretary of Maiden Holdings and Maiden Bermuda, sent a letter to the U.S. Department of Labor claiming that his employment with the Company was terminated in retaliation for corporate whistleblowing in violation of the whistleblower protection provisions of the Sarbanes-Oxley Act of 2002. Mr. Turin alleged that he was terminated for raising concerns regarding corporate governance with respect to the negotiation of the terms of the Trust Preferred Securities Offering. He seeks reinstatement as Chief Operating Officer, General Counsel and Secretary of Maiden Holdings and Maiden Bermuda, back pay and legal fees incurred. On December 31, 11. Commitments and Contingencies (continued) 2009, the U.S. Secretary of Labor found no reasonable cause for Mr. Turin’s claim and dismissed the complaint in its entirety. Mr. Turin objected to the Secretary's findings and requested a hearing before an administrative law judge in the U.S. Department of Labor. The Company moved to dismiss Mr. Turin's complaint, and its motion was granted by the Administrative Law Judge on June 30, 2011. On July 13, 2011, Mr. Turin filed a petition for review of the Administrative Law Judge's decision with the Administrative Review Board in the U.S. Department of Labor. On March 29, 2013, the Administrative Review Board reversed the dismissal of the complaint on procedural grounds, and remanded the case to the administrative law judge. The administrative hearing began in September 2014, and we expect the hearings to conclude in 2018. The Company believes that it had good and sufficient reasons for terminating Mr. Turin's employment and that the claim is without merit. The Company will continue to vigorously defend itself against this claim.
|
||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Common Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings per Common Share | Earnings per Common Share The following is a summary of the elements used in calculating basic and diluted earnings per common share:
(1) This represents earnings allocated to the holders of non-vested restricted shares issued to the Company's employees under the 2007 Share Incentive Plan.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' Equity | Shareholders' Equity
At September 30, 2018, the aggregate authorized share capital of the Company is 150,000,000 shares from which the Company has issued 87,932,287 common shares, of which 82,942,737 common shares are outstanding, and 18,600,000 preference shares, all of which are outstanding. The remaining 43,467,713 are undesignated at September 30, 2018. For further discussion on the components of Shareholders' Equity, please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2017.
During the nine months ended September 30, 2018, the Company repurchased a total of 29,391 (2017 - 38,122) shares at an average price per share of $6.57 (2017 - $15.06) from employees, which represent withholdings in respect of tax obligations on the vesting of restricted shares and performance based shares. During the three and nine months ended September 30, 2018, 205,000 shares (2017 - 2,015,700) were repurchased on the open market at an average price per share of $3.31 (2017- $7.11) under the Company's share repurchase plan which has a remaining authorization of $74,245 at September 30, 2018 (December 31, 2017 - $74,924).
The following tables set forth financial information regarding the changes in the balances of each component of AOCI:
13. Shareholders' Equity (continued)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events |
9 Months Ended |
|---|---|
Sep. 30, 2018 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events On November 9, 2018, the Company signed an agreement ("Enstar Master Agreement") with Enstar, pursuant to which, an Enstar subsidiary would enter into a retrocession agreement to effect a loss portfolio transfer in which the Enstar subsidiary would assume all of the liabilities for loss reserves as of June 30, 2018 associated with the quota share reinsurance agreements that Maiden Bermuda has with AmTrust or its subsidiaries. Enstar will assume $2,675,000 of net loss and loss adjustment expense reserves upon closing, subject to adjustment for paid losses since June 30, 2018. The transaction is subject to regulatory approvals and other closing conditions. Both of the Company’s current quota share reinsurance contracts with AmTrust remain in-force. As previously disclosed in "Note 10. Related Party Transactions", the Company and AmTrust have mutually agreed to extend the notice period of non-renewal for the current Master Agreement until January 31, 2019.
|
Significant Accounting Policies (Policies) |
9 Months Ended |
|---|---|
Sep. 30, 2018 | |
| Accounting Policies [Abstract] | |
| Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Maiden Holdings, Ltd. ("Maiden Holdings") and its subsidiaries (the "Company" or "Maiden"). They have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All significant intercompany transactions and accounts have been eliminated. These interim unaudited Condensed Consolidated Financial Statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim period and all such adjustments are of a normal recurring nature. The results of operations for the interim period are not necessarily indicative, if annualized, of those to be expected for the full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. These unaudited Condensed Consolidated Financial Statements, including these notes, should be read in conjunction with the Company's audited Consolidated Financial Statements, and related notes thereto, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Certain prior year comparatives have been reclassified for 2017 to conform to the 2018 presentation including as discussed below. The effect of these reclassifications had no impact on previously reported shareholders' equity or net income (loss). |
| Recently Adopted Accounting Standards Updates and Recently Adopted Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards Updates Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2014-09 guidance that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our other insurance revenue activities. This guidance is effective for reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company has adopted the guidance in ASU 2014-09 on January 1, 2018. Our analysis of revenues for the three and nine months ended September 30, 2018 indicates that substantially all of our revenues are from sources not within the scope of the standard. The Company generates an insignificant amount of fee income which is reported under other insurance revenue in the Condensed Consolidated Statements of Income and is within the scope of ASU 2014-09. The Company’s current accounting policy for this revenue is to recognize fee income as earned when the related services are performed which is consistent with the guidance in this ASU. Other insurance revenue is currently less than 1% of total revenues so the expanded disclosure requirements mandated by this ASU are not required or deemed relevant due to materiality. As substantially all of our revenue sources are not within the scope of the standard, the adoption of the standard did not have a material effect on our reported condensed consolidated financial condition, results of operations or cash flows. Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09 to amend the guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The Company currently has a number of share based payment awards as disclosed in the Annual Report on Form 10-K for the year ended December 31, 2017. The adoption of this guidance on January 1, 2018 did not have an impact on the Company's Condensed Consolidated Financial Statements as no modifications were made in any of its current share based payment awards. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01 that will change how entities measure certain equity investments and present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. Under the new guidance, entities will have to measure many equity investments at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. This includes investments in partnerships, unincorporated joint ventures and limited liability companies that do not result in consolidation and are not accounted for under the equity method. Entities will no longer be able to recognize unrealized holding gains and losses on equity securities they classify today as available-for-sale ("AFS") in Accumulated Other Comprehensive Income ("AOCI"). The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this guidance on January 1, 2018 resulted in the recognition of $465 of net unrealized losses and $358 of net unrealized gains on our investments in limited partnerships within net income during the three and nine months ended September 30, 2018, respectively. Our investments in limited partnerships do not have a readily determinable fair value and therefore, the new guidance was adopted prospectively. Please refer to "Note 4. Investments (d) - Realized Gains on Investment" for additional information. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15 guidance to clarify how entities should classify certain cash receipts and cash payments on the statement of cash flows. The new guidance amends Accounting Standards Codification ("ASC") 230 Statement of Cash Flows, a principles based requiring judgment to determine the appropriate classification of cash flow as operating, investing or financing activities which created diversity in how certain cash receipts and cash payments were classified. The new guidance 2. Significant Accounting Policies (continued) clarifies that if a receipt or payment has aspects of more than one class of cash flows and cannot be separated, the classification will depend on the predominant source or use. While the new guidance attempts to clarify how the predominance principle should be applied, judgment will still be required. The guidance is effective for public business entities for annual periods beginning after December 15, 2017 and interim periods therein. Entities will have to apply the guidance retrospectively, but if it is impracticable to do so for an issue, the amendments related to that issue would be applied prospectively. The adoption of this guidance did not have any impact on the Company's results of operations, financial position or liquidity. Presentation of Restricted Cash in the Statement of Cash Flows In November 2016, the FASB issued ASU 2016-18 guidance that require entities to show the changes in the total cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. This reconciliation can be presented either on the face of the statement of cash flows or in the notes to the financial statements. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company adopted this guidance on January 1, 2018. The adoption of this guidance did not have a material effect on the Company's consolidated financial condition, results of operations and disclosures, other than the presentation of restricted cash and cash equivalents in the statement of cash flows. The financial impact in the consolidated statements of cash flows has eliminated the presentation of changes in restricted cash and cash equivalents from cash flows from investing activities. Therefore, changes that result from transfers between cash, cash equivalents, and restricted cash and cash equivalents are no longer presented as cash flow activities in the statement of cash flows. Additionally, a reconciliation between the statement of financial position and the statement of cash flows has been disclosed to show the movement in cash and cash equivalents and restricted cash and cash equivalents from the prior period. Recently Issued Accounting Standards Not Yet Adopted Improvements to Non-employee Share-Based Payment Accounting In June 2018, the FASB issued ASU 2018-07 guidance that simplifies the accounting for share-based payments granted to non-employees for goods and services. Under the guidance, most of the guidance on such payments to non-employees would be aligned with the requirements for share-based payments granted to employees as the board viewed the awards to both employees and non-employees to be economically similar and that two different accounting models are not justified. Under the new guidance, i) non-employee share-based payment awards should be measured at the grant date fair value rather than the fair value of the consideration received or the fair value of the equity instruments issued, whichever can be more reliably measured, ii) the measurement date for equity classified non-employee share-based payment awards is at the grant date and not the earlier of the date at which a commitment for performance by the counterparty is reached and the date at which the counterparty's performance is complete, and iii) entities should consider the probability of satisfying the performance conditions when awards contain such conditions. The amendments in this guidance are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but not earlier than an entity's adoption date of Topic 606. The Company is currently evaluating the impact of this guidance on the Company's results of operations and financial position; however, it is not expected to have a material impact on the Company’s Consolidated Financial Statements. Codification Improvements In July 2018, the FASB issued ASU 2018-09 which includes clarifications to existing codifications or corrections of unintended application of guidance that is not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments in this update include items raised for board consideration through the codification's feedback system that met the scope of this project, making due process necessary. The amendments affect a wide variety of topics in the codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance. None of the topics deemed applicable have a material impact in the Company's interim consolidated financial statements. However, the Company is currently evaluating the impact of applicable sections on its results of operations and financial position once those sections are adopted beginning after December 15, 2018. Codification Improvements to Topic 842, Leases In July 2018, the FASB issued ASU 2018-11 for targeted improvements related to Update 2016-02 which provides entities with an additional transition method to apply the new standard. Under the new optional transition method, an entity initially applies ASC 842 at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Updates related to Topic 842 become effective for the Company during the first quarter of 2019 and will be applied using a modified retrospective approach. The Company intends to elect the new transition method permitted by ASU No. 2018-11. The Company's future minimum lease payments, which represent minimum annual rental commitments excluding taxes, insurance and other operating costs for non-cancellable operating leases, and which will be subject to this new guidance, will be recorded on the Company's consolidated balance sheets as a lease liability with a corresponding right-of-use asset. However, under this guidance, the Company shall continue to recognize the related leasing expense within net income. Therefore, adoption of this standard will impact the Company’s consolidated balance sheets but is not expected to have a material impact on the Company’s results of operations or cash flows. 2. Significant Accounting Policies (continued) Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13 for changes to the disclosure framework related to Topic 820 which amends the disclosure requirements for fair value measurement. The following disclosure requirements were removed from Topic 820: (i) amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (ii) policy for timing of transfers between levels, and (iii) valuation processes for Level 3 fair value measurements. The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The following disclosure requirements were added to Topic 820: (i) changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and (ii) range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this Update and delay adoption of the additional disclosures until their effective date. These amendments only impact disclosures made in "Note 5. Fair Value Measurements" therefore, the adoption of this standard will not impact the Company’s consolidated balance sheets, results of operations or cash flows.
|
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Underwriting results of operating segments | The following tables summarize our reporting segment's underwriting results and the reconciliation of our reportable segments and Other category's underwriting results to our consolidated net loss from continuing operations: 3. Segment Information (continued)
3. Segment Information (continued)
3. Segment Information (continued)
3. Segment Information (continued)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net premiums by major line of business | The following tables set forth financial information relating to net premiums written by major line of business and reportable segment for the three and nine months ended September 30, 2018 and 2017:
The following tables set forth financial information relating to net premiums earned by major line of business and reportable segment for the three and nine months ended September 30, 2018 and 2017:
3. Segment Information (continued)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Original or amortized cost, estimated fair value and gross unrealized gains and losses of fixed maturities | The original or amortized cost, estimated fair value and gross unrealized gains and losses of fixed maturities at September 30, 2018 and December 31, 2017 are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contractual maturities of fixed maturities, available-for-sale | The contractual maturities of our fixed maturities are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of fixed maturities in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the securities have continuously been in an unrealized loss position | The following tables summarize fixed maturities in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of the credit ratings of fixed maturities | The following summarizes the credit ratings of our fixed maturities:
(1) Based on Standard & Poor’s ("S&P"), or equivalent, ratings
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Portfolio of other investments | The table below shows our portfolio of other investments:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net investment income | Net investment income was derived from the following sources:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Analysis of realized and unrealized gains (losses) on investment | Realized gains or losses on the sale of investments are determined on the basis of the first in first out cost method. The following provides an analysis of net realized gains on investment included in the Condensed Consolidated Statements of Income:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net unrealized (losses) gains on available-for-sale securities and other investments | Net unrealized (losses) gains on investments, including those allocated to discontinued operations and classified as held for sale, were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair value of restricted assets | The fair value of our restricted assets was as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair value hierarchy of financial assets and financial liabilities measured on a recurring basis | At September 30, 2018 and December 31, 2017, we classified our financial instruments measured at fair value on a recurring basis in the following valuation hierarchy:
5. Fair Value of Financial Instruments (continued)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carrying values and fair values of financial instruments not measured at fair value | The following table presents the fair value and carrying value or principal amount of the financial instruments not measured at fair value:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and intangible assets held and held for sale | The following tables show the analysis of goodwill and intangible assets classified as held for sale at September 30, 2018 and December 31, 2017 (please refer to "Note 8. Discontinued Operations" for further details):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of outstanding senior notes issuances | The following table details the Company's Senior Notes issuances as of September 30, 2018 and December 31, 2017:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of disposal groups, including discontinued operations, balance sheet, income statement disclosures | The classes of assets and liabilities to be sold and classified as held for sale as of September 30, 2018 and December 31, 2017 consist of the following: 8. Discontinued Operations (continued)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for Loss and Loss Adjustment Expenses (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insurance [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of liability for unpaid claims and claims adjustment expense | Our reserve for loss and LAE comprises:
The following table represents a reconciliation of our beginning and ending gross and net loss and LAE reserves:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of quota share arrangements with AmTrust | The table below shows the effect of both of these quota share arrangements with AmTrust on the Company's results of operations for the three and nine months ended September 30, 2018 and 2017:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||
| Schedule of dividends declared | On August 8, 2018, the Company's Board of Directors authorized the following quarterly dividend:
|
||||||||||||||||||||||||||||
Earnings per Common Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of elements used in calculating basic and diluted earnings per common share | The following is a summary of the elements used in calculating basic and diluted earnings per common share:
(1) This represents earnings allocated to the holders of non-vested restricted shares issued to the Company's employees under the 2007 Share Incentive Plan.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of accumulated other comprehensive (loss) income | The following tables set forth financial information regarding the changes in the balances of each component of AOCI:
13. Shareholders' Equity (continued)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
| Accounting Policies [Abstract] | ||||
| Revenue in scope of guidance in ASU (less than) | 1.00% | |||
| Net unrealized (loss) gain on investments recognized in net income | $ (465) | $ 0 | $ 358 | $ 0 |
Investments - Other Investments (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|---|---|---|
| Schedule of Investments [Line Items] | ||
| Fair value | $ 22,586 | $ 6,600 |
| % of Total fair value | 100.00% | 100.00% |
| Investment in limited partnerships | ||
| Schedule of Investments [Line Items] | ||
| Fair value | $ 3,554 | $ 5,100 |
| % of Total fair value | 15.70% | 77.30% |
| Unfunded commitment on investments in limited partnerships | $ 414 | $ 306 |
| Other | ||
| Schedule of Investments [Line Items] | ||
| Fair value | $ 19,032 | $ 1,500 |
| % of Total fair value | 84.30% | 22.70% |
| Unfunded commitment on investments in limited partnerships | $ 7,468 | $ 0 |
Investments - Net Investment Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
| Schedule of Investments [Line Items] | ||||
| Investment income | $ 35,477 | $ 32,877 | $ 104,793 | $ 97,183 |
| Investment expenses | (1,058) | (1,927) | (3,245) | (5,586) |
| Net investment income | 34,419 | 30,950 | 101,548 | 91,597 |
| Fixed maturities | ||||
| Schedule of Investments [Line Items] | ||||
| Investment income | 32,443 | 30,496 | 97,485 | 91,954 |
| Cash and cash equivalents | ||||
| Schedule of Investments [Line Items] | ||||
| Investment income | 905 | 899 | 1,596 | 1,328 |
| Loan to related party | ||||
| Schedule of Investments [Line Items] | ||||
| Investment income | 1,658 | 913 | 4,651 | 2,441 |
| Other | ||||
| Schedule of Investments [Line Items] | ||||
| Investment income | $ 471 | $ 569 | $ 1,061 | $ 1,460 |
Investments - Net Realized and Unrealized Gains (Losses) on Investment (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
| Gain (Loss) on Investments [Line Items] | |||||
| Gross gains | $ 333 | $ 6,856 | $ 4,974 | $ 9,569 | |
| Gross losses | (558) | (997) | (5,256) | (1,253) | |
| Realized gains (losses), Net | (225) | 5,859 | (282) | 8,316 | |
| Proceeds from sales of fixed maturities classified as available-for-sale | 20,198 | 30,440 | 185,089 | 116,306 | |
| Net unrealized gains (losses) | (119,919) | (119,919) | $ 21,967 | ||
| Deferred income tax | (59) | (59) | (78) | ||
| Net unrealized (losses) gains, net of deferred income tax | (119,978) | (119,978) | 21,889 | ||
| Change, net of deferred income tax | (141,867) | 42,605 | |||
| Available-for-sale securities | Fixed maturities | |||||
| Gain (Loss) on Investments [Line Items] | |||||
| Gross gains | 40 | 1,366 | 2,979 | 3,854 | |
| Gross losses | (558) | (997) | (5,256) | (1,253) | |
| Realized gains (losses), Net | (518) | 369 | (2,277) | 2,601 | |
| Net unrealized gains (losses) | (119,919) | (119,919) | 20,586 | ||
| Other investments | |||||
| Gain (Loss) on Investments [Line Items] | |||||
| Gross gains | 293 | 5,490 | 1,995 | 5,715 | |
| Gross losses | 0 | 0 | 0 | 0 | |
| Realized gains (losses), Net | 293 | $ 5,490 | 1,995 | $ 5,715 | |
| Net unrealized gains (losses) | $ 0 | $ 0 | $ 1,381 | ||
Investments - Net Gains Recognized on Other Investments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
| Schedule of Investments [Abstract] | ||||
| Net gains recognized in net income on other investments during the period | $ 293 | $ 5,490 | $ 1,995 | $ 5,715 |
| Net realized gains recognized on other investments divested during the period | (758) | (5,490) | (1,637) | (5,715) |
| Net unrealized (losses) gains recognized on other investments still held at end of period | $ (465) | $ 0 | $ 358 | $ 0 |
Investments - Restricted Cash and Cash Equivalents and Investments (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
|---|---|---|---|
| Restricted Cash and Investments Items [Line Items] | |||
| Restricted cash | $ 169,996 | $ 94,905 | $ 71,517 |
| Restricted investments | 3,542,944 | 3,631,324 | |
| Restricted cash and investments | 3,712,940 | 3,726,229 | |
| Amortized Cost | 3,900,136 | 3,797,098 | |
| Third party agreements | |||
| Restricted Cash and Investments Items [Line Items] | |||
| Restricted cash | 20,884 | 21,889 | |
| Restricted investments | 75,233 | 211,331 | |
| Amortized Cost | 75,279 | 212,507 | |
| Related party agreements | |||
| Restricted Cash and Investments Items [Line Items] | |||
| Restricted cash | 149,112 | 73,016 | |
| Restricted investments | 2,447,970 | 2,294,367 | |
| Amortized Cost | 2,515,190 | 2,281,668 | |
| HTM related party agreements | |||
| Restricted Cash and Investments Items [Line Items] | |||
| Restricted investments | 1,019,741 | 1,125,626 | |
| Amortized Cost | $ 1,032,885 | $ 1,097,801 |
Fair Value of Financial Instruments - Changes in Level 3 Financial Instruments (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
| Fair Value Disclosures [Abstract] | ||||
| Transfers into Level 3 | $ 0 | $ 0 | $ 0 | $ 0 |
| Transfers out of Level 3 | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Assets - Change in Carrying Value of Goodwill and Intangible Assets Held (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |
|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
| Goodwill [Roll Forward] | ||||
| Goodwill, beginning balance | $ 57,192 | $ 57,192 | $ 57,192 | |
| Impairment losses | (57,192) | |||
| Goodwill, ending balance | 0 | 57,192 | ||
| Intangible Assets [Roll Forward] | ||||
| Intangible assets (excluding goodwill), net, beginning balance | 18,391 | 20,523 | 20,523 | |
| Amortization | (1,387) | (2,132) | ||
| Impairment losses | (17,004) | |||
| Intangible assets (excluding goodwill), net, ending balance | 0 | 18,391 | ||
| Intangible Assets, Net (Including Goodwill) [Abstract] | ||||
| Intangible assets (including goodwill), net, beginning balance | 75,583 | 77,715 | 77,715 | |
| Impairment losses | $ 0 | 74,196 | $ 0 | |
| Intangible assets (including goodwill), net, ending balance | $ 0 | $ 75,583 | ||
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
| Goodwill and intangible asset impairment | $ 0 | $ 74,196 | $ 0 | |
| Maiden US Sale | Discontinued Operations, Held-for-sale | ||||
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
| Goodwill and intangible asset impairment | $ 74,196 | $ 74,196 | ||
Long-Term Debt - Schedule of Outstanding Senior Notes Issuances (Details) - USD ($) |
Sep. 30, 2018 |
Dec. 31, 2017 |
|---|---|---|
| Debt Instrument [Line Items] | ||
| Unamortized debt issuance costs | $ 7,860,000 | $ 8,018,000 |
| Senior notes, net | 254,640,000 | 254,482,000 |
| Senior Notes | ||
| Debt Instrument [Line Items] | ||
| Principal | 262,500,000 | 262,500,000 |
| Unamortized debt issuance costs | 7,860,000 | 8,018,000 |
| Senior notes, net | 254,640,000 | 254,482,000 |
| Senior Notes | 2016 Senior Notes | ||
| Debt Instrument [Line Items] | ||
| Principal | 110,000,000 | 110,000,000 |
| Unamortized debt issuance costs | 3,622,000 | 3,654,000 |
| Senior notes, net | 106,378,000 | 106,346,000 |
| Original debt issuance costs | $ 3,715,000 | |
| Coupon rate | 6.625% | |
| Effective interest rate | 7.07% | |
| Senior Notes | 2013 Senior Notes | ||
| Debt Instrument [Line Items] | ||
| Principal | $ 152,500,000 | |
| Unamortized debt issuance costs | 4,238,000 | 4,364,000 |
| Senior notes, net | 148,262,000 | $ 148,136,000 |
| Original debt issuance costs | $ 5,054,000 | |
| Coupon rate | 7.75% | |
| Effective interest rate | 8.04% |
Long-Term Debt - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||
|---|---|---|---|---|---|---|
Jun. 27, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
| Debt Instrument [Line Items] | ||||||
| Interest expense | $ 4,829,000 | $ 4,829,000 | $ 14,487,000 | $ 18,430,000 | ||
| Accelerated amortization of senior note issuance cost | 0 | 0 | 0 | 2,809,000 | ||
| Senior Notes | ||||||
| Debt Instrument [Line Items] | ||||||
| Interest expense | 4,776,000 | 4,776,000 | 14,329,000 | 18,218,000 | ||
| Accrued interest | 1,342,000 | 1,342,000 | $ 1,342,000 | |||
| Amortization expense, debt issuance costs | 53,000 | 53,000 | 158,000 | $ 212,000 | ||
| Principal amount | 262,500,000 | 262,500,000 | $ 262,500,000 | |||
| Senior Notes | 2013 Senior Notes | ||||||
| Debt Instrument [Line Items] | ||||||
| Principal amount | $ 152,500,000 | $ 152,500,000 | ||||
| Senior Notes | 2012 Senior Notes | ||||||
| Debt Instrument [Line Items] | ||||||
| Redemption price percentage | 100.00% | |||||
| Principal amount | $ 100,000,000 | |||||
| Accelerated amortization of senior note issuance cost | $ 2,809,000 | |||||
Related Party Transactions - Schedule of AmTrust Quota Share Arrangement (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
| Related Party Transaction [Line Items] | ||||
| Gross premiums written | $ 484,494 | $ 443,001 | $ 1,629,347 | $ 1,650,762 |
| Net premiums earned | 520,077 | 457,278 | 1,541,278 | 1,512,437 |
| Net loss and loss adjustment expenses (loss and LAE) | (600,296) | (370,847) | (1,323,503) | (1,090,608) |
| Commission expenses | (167,618) | (145,352) | (497,026) | (487,771) |
| Quota Share Reinsurance Agreements | AmTrust Financial Services, Inc. | ||||
| Related Party Transaction [Line Items] | ||||
| Gross premiums written | 452,795 | 420,019 | 1,518,208 | 1,575,677 |
| Net premiums earned | 491,613 | 451,372 | 1,472,614 | 1,492,948 |
| Net loss and loss adjustment expenses (loss and LAE) | (579,240) | (364,574) | (1,275,723) | (1,080,480) |
| Commission expenses | $ (152,511) | $ (138,171) | $ (456,861) | $ (460,667) |
Related Party Transactions - NGHC (Details) - National General Holdings Corp. - NGHC Quota Share |
Mar. 01, 2010 |
|---|---|
| Related Party Transaction [Line Items] | |
| Percent participation in quota share by subsidiary | 50.00% |
| Percentage of net premiums received on personal lines automobile business | 25.00% |
| Percent of net losses related to premiums of personal lines business assumed by reinsurers | 25.00% |
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended |
|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2018 |
Dec. 31, 2017 |
|
| Stockholders' Equity Note [Abstract] | |||
| Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 | |
| Common stock, shares issued (in shares) | 87,932,287 | 87,932,287 | 87,730,054 |
| Common stock, shares outstanding (in shares) | 82,942,737 | 82,942,737 | 82,974,895 |
| Preference shares issued (in shares) | 18,600,000 | 18,600,000 | |
| Undesignated shares (in shares) | 43,467,713 | 43,467,713 | |
| Shares repurchased for tax withholding (in shares) | 29,391 | 38,122 | |
| Shares repurchased for tax withholding, price per share (in dollars per share) | $ 6.57 | $ 15.06 | |
| Shares repurchased (in shares) | 205,000 | 205,000 | 2,015,700 |
| Average price per share of shares repurchased (in dollars per share) | $ 3.31 | $ 3.31 | $ 7.11 |
| Remaining authorization for share repurchase | $ 74,245 | $ 74,245 | $ 74,924 |
Subsequent Events (Details) $ in Thousands |
Nov. 09, 2018
USD ($)
|
|---|---|
| Subsequent Event | |
| Subsequent Event [Line Items] | |
| Retrocession premium | $ 2,675,000 |
<#3!1!(WXT
M9.2+>:!2.5'ZJA:?+]LP4A&1EIR% "T6-$F'TZ5/SJKY)P#9X!(,X^Q8'L4Y UJ90ZS#[P3FLZB2C,@VRX70+8
MA1:)46'R0:@QDWS%3%HE/G]4%3,9%9B,9,GL0:?3FC/#/5>@H1BNF(H.Q0 R
M!Y"3@@Y=86:F0C.3/)C0F2E%RCU+,1-3H8D9[IF*;O!<;IEYJ="\#-=,A4:(
MD6G";!R*&0\*K.ADUU1T1Y=*DET3P"X40_^*&37J,Z-&@5&C;$SH__83P*%7
MS%!28"B1?5,!GO;/OIK9_15#P0I0,-DW%: EE4G!G!W-,(X&NSW9-S78V5/N
M05 SO*01+X7;IJ8;NTR9TZ,99M* F4S80)K2CK5:)L$IFP$<'& EX;S?HZ,
MFDR1TP9P%U+Z/@J[&P%5YAT,7UDAH/:;1GB 8Y]7-+<:Y+_\9Y$,T2K =$2
M$M#HT40(Q;T[T S=:D"WM&%BPNJX82@.-PS%@88!1F'#4!S3, "(&P8 8<-0
M'&V8Z.25]%>.+=D6-ORN",K8AWF+Q#[[7@MX>,78/0
MC#E-&+["[!8$0_4E!-\*<>+_T?DV?;^9X3[2]VMZDFP+I)L":11(_RGQP[L2
M-S!W[X.P54\UV"9.DR.E&;HXR2OO,K //+[)7_@T[=^$;63GR,5X?-G8_]H8
M#YA*