| | |
Per Note
|
| |
Total
|
| ||||||
Public offering price(1)
|
| | | | 100.00% | | | | | $ | 25,000,000 | | |
Underwriting discounts and commissions
|
| | | | 3.15% | | | | | $ | 787,500 | | |
Proceeds to us, before expenses(2)
|
| | | | 96.85% | | | | | $ | 24,212,500 | | |
| | | | | S-ii | | | |
| | | | | S-iii | | | |
| | | | | S-1 | | | |
| | | | | S-7 | | | |
| | | | | S-10 | | | |
| | | | | S-10 | | | |
| | | | | S-10 | | | |
| | | | | S-11 | | | |
| | | | | S-22 | | | |
| | | | | S-25 | | | |
| | | | | S-30 | | | |
| | | | | S-32 | | | |
| | | | | S-32 | | | |
| | | | | S-32 | | |
| | | | | ii | | | |
| | | | | ii | | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 5 | | | |
| | | | | 15 | | | |
| | | | | 16 | | | |
| | | | | 16 | | | |
| | | | | 17 | | | |
| | | | | 21 | | | |
| | | | | 23 | | | |
| | | | | 23 | | | |
| | | | | 23 | | |
| | |
Year Ended
|
| |||||||||||||||
| | |
December 31,
2016 |
| |
December 31,
2015 |
| |
December 31,
2014 |
| |||||||||
| | |
($ in ’000s, except for per share data)
|
| |||||||||||||||
Gross premium written
|
| | | $ | 225,095 | | | | | $ | 209,286 | | | | | $ | 122,432 | | |
Net premium earned
|
| | | | 171,058 | | | | | | 152,064 | | | | | | 98,124 | | |
Net claims incurred
|
| | | | 134,746 | | | | | | 89,994 | | | | | | 61,078 | | |
Underwriting expense: | | | | | |||||||||||||||
Acquisition costs
|
| | | | 18,803 | | | | | | 18,592 | | | | | | 14,048 | | |
Share-based compensation
|
| | | | 1,552 | | | | | | 1,613 | | | | | | 1,470 | | |
Expenses (recovered) incurred related to acquisitions and stock underwriting agreements(1)
|
| | | | (6,297) | | | | | | 1,941 | | | | | | 694 | | |
Other underwriting expenses(2)
|
| | | | 27,237 | | | | | | 21,971 | | | | | | 12,393 | | |
Total underwriting expenses
|
| | | | 41,295 | | | | | | 44,117 | | | | | | 28,605 | | |
Underwriting (loss) income
|
| | | | (4,983) | | | | | | 17,953 | | | | | | 8,441 | | |
Net investment income
|
| | | | 4,824 | | | | | | 3,976 | | | | | | 3,110 | | |
(Loss) income from operating activities, before tax
|
| | | | (159) | | | | | | 21,929 | | | | | | 11,551 | | |
Interest expense(2)
|
| | | | (1,026) | | | | | | (694) | | | | | | — | | |
Realized gains and other income
|
| | | | 1,697 | | | | | | 811 | | | | | | 384 | | |
Net income before tax
|
| | | | 512 | | | | | | 22,046 | | | | | | 11,935 | | |
Tax benefit from release of valuation allowance
|
| | | | — | | | | | | — | | | | | | (9,446) | | |
Income tax (benefit) expense
|
| | | | (2,134) | | | | | | 7,616 | | | | | | 3,679 | | |
Net income
|
| | | $ | 2,646 | | | | | $ | 14,430 | | | | | $ | 17,702 | | |
Key Financial Ratios: | | | | | |||||||||||||||
Loss ratio
|
| | | | 78.8% | | | | | | 59.2% | | | | | | 62.3% | | |
Underwriting expense ratio: | | | | | |||||||||||||||
Acquisition cost ratio
|
| | | | 11.0% | | | | | | 12.2% | | | | | | 14.3% | | |
Share-based compensation ratio
|
| | | | 0.9% | | | | | | 1.1% | | | | | | 1.5% | | |
Expenses (recovered) incurred related to acquisitions and stock underwriting agreements ratio(1)
|
| | | | (3.7)% | | | | | | 1.3% | | | | | | 0.7% | | |
Other underwriting expense ratio
|
| | | | 15.9% | | | | | | 14.4% | | | | | | 12.6% | | |
Total underwriting expense ratio(1)
|
| | | | 24.1% | | | | | | 29.0% | | | | | | 29.1% | | |
Combined ratio(1)
|
| | | | 102.9% | | | | | | 88.2% | | | | | | 91.4% | | |
Earnings per common share diluted
|
| | | $ | 0.19 | | | | | $ | 1.13 | | | | | $ | 1.56 | | |
Book value per common share
|
| | | $ | 10.54 | | | | | $ | 10.15 | | | | | $ | 9.08 | | |
Return on equity
|
| | | | 2.1% | | | | | | 12.1% | | | | | | 20.5% | | |
| | |
As of December 31, 2016
(in thousands) |
| | |||||||||||
| | |
Actual
|
| |
As Adjusted
|
| | ||||||||
Notes payable, gross
|
| | | $ | 19,400 | | | | | $ | — | | | | ||
6.625% senior unsecured notes due 2022
|
| | | | — | | | | | | 25,000 | | | | ||
Total debt
|
| | | $ | 19,400 | | | | | $ | 25,000 | | | | ||
Ordinary shares
|
| | | $ | 36 | | | | | $ | 36 | | | | ||
Additional paid-in capital
|
| | | | 199,244 | | | | | | 199,244 | | | | ||
Retained earnings (deficit)
|
| | | | (71,718) | | | | | | (71,718) | | | | ||
Accumulated other comprehensive income (loss), net of tax
|
| | | | (220) | | | | | | (220) | | | | | |
Total shareholders’ equity
|
| | | | 127,342 | | | | | | 127,342 | | | | ||
Total capitalization
|
| | | $ | 146,742 | | | | | $ | 152,342 | | | | ||
|
|
Fiscal Year Ended December 31,
|
| |||||||||||||||||||||||||||
|
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||
| | | 1.13x | | | | | | 19.71x | | | | | | 64.86x | | | | | | 69.47x | | | | | | 1.98x | | |
Name
|
| |
Principal Amount
of Notes |
| |||
Sandler O’Neill & Partners, L.P.
|
| | | $ | 16,250,000 | | |
Boenning & Scattergood, Inc.
|
| | | | 6,250,000 | | |
American Capital Partners, LLC
|
| | | | 2,500,000 | | |
Total:
|
| | | $ | 25,000,000 | | |
| | |
Page
|
| | |||||
| | | | ii | | | | |||
| | | | ii | | | | |||
| | | | 1 | | | | |||
| | | | 1 | | | | |||
| | | | 1 | | | | |||
| | | | 1 | | | | |||
| | | | 5 | | | | |||
| | | | 15 | | | | |||
| | | | 16 | | | | |||
| | | | 16 | | | | |||
| | | | 17 | | | | |||
| | | | 21 | | | | |||
| | | | 23 | | | | |||
| | | | 23 | | | | |||
| | | | 23 | | | | | |
32J[/BB'%N<3-Q 3 ).!C<0DRVI>,;YEF(YZ)0W-UG#V[:C L@6P=
MMJD7A7)J[8ITP6/ VO&,:QH< )N(7+= :!:;S[N=OS2]I_-
M3W-8$V\[NK?C+$5$6QPC4Z5$TS%$BRATYG%]/L$F";ZP4&7F')G
MC6.#N%-MD.PL%7M5:E& #)YBB5JQIESELY%L*A[!C5U)9PV\HR3LHE<4"P/VR&5*+#%6.B1+
MS;N+U"?;M$0664)2\A>"=WPP54E);'.ZS;3D&U,6ZKAC49>-R+14YH44S*=A9
MV%2$LC-K(N1*!$0
M]7L!&R@+L7A3*1TY!3$:X?0=EKDJD03-9&/ G*%>N3-XN8BI"-FK%T5Z B4P%5:$-P'AH'7T9),)F-CYB*=H2$7*LF
MDE&OVJA56SU@^03=,W;94O$JB#ENJ4Y#!Y!*8!T'VZ T"&G<1\X#.?QQ9-^&
MLWH&.7@J?9Z[COI727R8T'064N8#L2P?S'-L%^VNYYBA7K=L0)(5JSLVS=:Q
M8YOD8BY+6;_55'' $9F#7='*8G2(5VS67:J&!-<^@3:\PG81G;EN;G[YMASW
M#D;SU8=&?U.VQP*J5;)="?KK^;-^J3U0A#+Q$VT2XG14 CEBZ(JV<)IKI*$
M/BV![Z\ZOR&7,BDJJ5
M(#"0AS !1!*AOJP9
MLL!^( F4JI1 'IAQX &@
28QL\_)*2*"8@<8F/='
M2@03 "3>
+
MG555.8QU#F$PB(CH&%_@L=B)JWCC<+S$+I#E3D\CO_5WP@Y
?,?Q5(6*R#$8"W R4;@_/#-\][+ M(*V/TFE4OSX5".$&JV.+>LUD5'!
M4A<#& ]:D,0KHXZ!PQH#0:3W*Q3^
^E7>#
MKL\Z1ER2T.Q:JKPCY< +,Q"8F*=1VT?D1"OW4[99Z':*Y=Z58)BIW&H3D59J
MK:*](.HF>KMB@WR$G#3<-*,E$7D=*1<@V36072.51)4@&*(" :!LQX>SGF5G
MFHX7'$V9).'K^^3#%<;K9)@D"-8QIF*FLE&,6EFVFQ;9NT8M!7?O$&]BC&I>
MJBY)9-5(B31ZV12"R!H$U_B*/;3;]_C.JGR2X\T%D#P.G^>N8E^"]N/\+R_H
M&"&@- G-\29[;G?K^7&,_D%Q3H(.= : T!H',OA[_8Q
D
M$DUF
^9HV_-HY)7*
M]-E$XIDVDK#BYM'E)Z3:NZ!@*BD0@@2?8G$H($DR'4,U"AS(1[^)?O8N49.X
MV3C7;F/D8Z0;+,W\>_9K';O&3UFX(FX:NVKA,R:B:A2G(