Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended |
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from _______ to _______ |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Names of each exchange on which registered | |||||||||||||||
Global Select Market |
x | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company |
Page Number | ||||||||
(Unaudited) September 30, 2022 | December 31, 2021 | ||||||||||
(in thousands) | |||||||||||
Assets | |||||||||||
Invested assets: | |||||||||||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: 2022 – $ | $ | $ | |||||||||
Equity securities, at fair value (cost: 2022 – $ | |||||||||||
Bank loan participations, at fair value | |||||||||||
Short-term investments | |||||||||||
Other invested assets | |||||||||||
Total invested assets | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash equivalents | |||||||||||
Accrued investment income | |||||||||||
Premiums receivable and agents’ balances, net | |||||||||||
Reinsurance recoverable on unpaid losses, net | |||||||||||
Reinsurance recoverable on paid losses | |||||||||||
Prepaid reinsurance premiums | |||||||||||
Deferred policy acquisition costs | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ |
(Unaudited) September 30, 2022 | December 31, 2021 | ||||||||||
(in thousands, except share amounts) | |||||||||||
Liabilities and Shareholders’ Equity | |||||||||||
Liabilities: | |||||||||||
Reserve for losses and loss adjustment expenses | $ | $ | |||||||||
Unearned premiums | |||||||||||
Payables to reinsurers | |||||||||||
Funds held | |||||||||||
Deferred reinsurance gain | |||||||||||
Senior debt | |||||||||||
Junior subordinated debt | |||||||||||
Accrued expenses | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingent liabilities | |||||||||||
Series A redeemable preferred shares – 2022 and 2021: $ | |||||||||||
Shareholders’ equity: | |||||||||||
Common shares – 2022 and 2021: $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained deficit | ( | ( | |||||||||
Accumulated other comprehensive (loss) income | ( | ||||||||||
Total shareholders’ equity | |||||||||||
Total liabilities, Series A redeemable preferred shares, and shareholders’ equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands, except share amounts) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Gross written premiums | $ | $ | $ | $ | |||||||||||||||||||
Ceded written premiums | ( | ( | ( | ( | |||||||||||||||||||
Net written premiums | |||||||||||||||||||||||
Change in net unearned premiums | ( | ( | |||||||||||||||||||||
Net earned premiums | |||||||||||||||||||||||
Net investment income | |||||||||||||||||||||||
Net realized and unrealized (losses) gains on investments | ( | ( | |||||||||||||||||||||
Other income | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Losses and loss adjustment expenses | |||||||||||||||||||||||
Other operating expenses | |||||||||||||||||||||||
Other expenses | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Amortization of intangible assets | |||||||||||||||||||||||
Total expenses | |||||||||||||||||||||||
(Loss) income before taxes | ( | ( | ( | ||||||||||||||||||||
Income tax expense (benefit) | ( | ||||||||||||||||||||||
Net (loss) income | ( | ( | ( | ||||||||||||||||||||
Dividends on Series A preferred shares | ( | ( | |||||||||||||||||||||
Net (loss) income available to common shareholders | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Other comprehensive loss: | |||||||||||||||||||||||
Net unrealized losses, net of taxes of $( | ( | ( | ( | ( | |||||||||||||||||||
Total comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Net (loss) income per common share: | |||||||||||||||||||||||
Basic | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Diluted | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Dividend declared per common share | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Number of Common Shares Outstanding | Common Shares (Par) | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive (Loss) Income | Total | ||||||||||||||||||||||||||||||
(in thousands, except share amounts) | |||||||||||||||||||||||||||||||||||
Balances at June 30, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Vesting of RSUs | — | — | — | — | |||||||||||||||||||||||||||||||
Compensation expense under share incentive plans | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends on Series A preferred shares | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Dividends on common shares | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balances at September 30, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Balances at December 31, 2021 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Vesting of RSUs | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Compensation expense under share incentive plans | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends on Series A preferred shares | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Dividends on common shares | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balances at September 30, 2022 | $ | $ | $ | ( | $ | ( | $ |
Number of Common Shares Outstanding | Common Shares (Par) | Additional Paid-in Capital | Retained (Deficit) Earnings | Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||||||||
(in thousands, except share amounts) | |||||||||||||||||||||||||||||||||||
Balances at June 30, 2021 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Issuance of common shares | — | — | — | — | — | ||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Vesting of RSUs | — | — | — | — | |||||||||||||||||||||||||||||||
Compensation expense under share incentive plans | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends on common shares | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balances at September 30, 2021 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Balances at December 31, 2020 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Issuance of common shares | — | — | |||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Vesting of RSUs | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Compensation expense under share incentive plans | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends on common shares | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balances at September 30, 2021 | $ | $ | $ | ( | $ | $ |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
(in thousands) | |||||||||||
Operating activities | |||||||||||
Net cash provided by (used in) operating activities (a) | $ | $ | ( | ||||||||
Investing activities | |||||||||||
Securities available-for-sale: | |||||||||||
Purchases – fixed maturity securities | ( | ( | |||||||||
Sales – fixed maturity securities | |||||||||||
Maturities and calls – fixed maturity securities | |||||||||||
Purchases – equity securities | ( | ( | |||||||||
Sales – equity securities | |||||||||||
Bank loan participations: | |||||||||||
Purchases | ( | ( | |||||||||
Sales | |||||||||||
Maturities | |||||||||||
Other invested assets: | |||||||||||
Purchases | ( | ||||||||||
Return of capital | |||||||||||
Short-term investments, net | ( | ||||||||||
Securities receivable or payable, net | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Net cash (used in) provided by investing activities | ( | ||||||||||
Financing activities | |||||||||||
Senior debt repayments | ( | ||||||||||
Issuance of Series A preferred shares (Note 12) | |||||||||||
Issuance of common shares - public offering | |||||||||||
Issuance of common shares under equity incentive plans | |||||||||||
Common share repurchases | ( | ( | |||||||||
Dividends on Series A preferred shares | ( | ||||||||||
Dividends on common shares | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Change in cash, cash equivalents, and restricted cash equivalents | ( | ( | |||||||||
Cash, cash equivalents, and restricted cash equivalents at beginning of period | |||||||||||
Cash, cash equivalents, and restricted cash equivalents at end of period | $ | $ | |||||||||
Supplemental information | |||||||||||
Interest paid | $ | $ | |||||||||
Restricted cash equivalents at beginning of period | $ | $ | |||||||||
Restricted cash equivalents at end of period | $ | $ | |||||||||
Change in restricted cash equivalents | $ | $ | ( |
Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
September 30, 2022 | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
State and municipal | $ | $ | $ | ( | $ | ||||||||||||||||||
Residential mortgage-backed | ( | ||||||||||||||||||||||
Corporate | ( | ||||||||||||||||||||||
Commercial mortgage and asset-backed | ( | ||||||||||||||||||||||
U.S. Treasury securities and obligations guaranteed by the U.S. government | ( | ||||||||||||||||||||||
Total fixed maturity securities, available-for-sale | $ | $ | $ | ( | $ | ||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
State and municipal | $ | $ | $ | ( | $ | ||||||||||||||||||
Residential mortgage-backed | ( | ||||||||||||||||||||||
Corporate | ( | ||||||||||||||||||||||
Commercial mortgage and asset-backed | ( | ||||||||||||||||||||||
U.S. Treasury securities and obligations guaranteed by the U.S. government | ( | ||||||||||||||||||||||
Total fixed maturity securities, available-for-sale | $ | $ | $ | ( | $ |
Cost or Amortized Cost | Fair Value | ||||||||||
(in thousands) | |||||||||||
One year or less | $ | $ | |||||||||
After one year through five years | |||||||||||
After five years through ten years | |||||||||||
After ten years | |||||||||||
Residential mortgage-backed | |||||||||||
Commercial mortgage and asset-backed | |||||||||||
Total | $ | $ |
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
September 30, 2022 | |||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||
State and municipal | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Residential mortgage-backed | ( | ( | ( | ||||||||||||||||||||||||||||||||
Corporate | ( | ( | ( | ||||||||||||||||||||||||||||||||
Commercial mortgage and asset-backed | ( | ( | ( | ||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations guaranteed by the U.S. government | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total fixed maturity securities, available-for-sale | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||
State and municipal | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Residential mortgage-backed | ( | ( | ( | ||||||||||||||||||||||||||||||||
Corporate | ( | ( | ( | ||||||||||||||||||||||||||||||||
Commercial mortgage and asset-backed | ( | ( | ( | ||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations guaranteed by the U.S. government | ( | ( | |||||||||||||||||||||||||||||||||
Total fixed maturity securities, available-for-sale | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Gross realized gains | $ | $ | $ | $ | |||||||||||||||||||
Gross realized losses | ( | ( | ( | ( | |||||||||||||||||||
( | |||||||||||||||||||||||
Bank loan participations: | |||||||||||||||||||||||
Gross realized gains | |||||||||||||||||||||||
Gross realized losses | ( | ( | ( | ( | |||||||||||||||||||
Changes in fair values of bank loan participations | ( | ( | |||||||||||||||||||||
( | ( | ||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Gross realized gains | |||||||||||||||||||||||
Gross realized losses | ( | ( | ( | ( | |||||||||||||||||||
Changes in fair values of equity securities | ( | ( | |||||||||||||||||||||
( | ( | ||||||||||||||||||||||
Short-term investments and other: | |||||||||||||||||||||||
Gross realized gains | |||||||||||||||||||||||
Gross realized losses | ( | ( | ( | ( | |||||||||||||||||||
Changes in fair values of short-term investments and other | |||||||||||||||||||||||
( | ( | ( | |||||||||||||||||||||
Total | $ | ( | $ | $ | ( | $ |
Carrying Value | Investment Income | ||||||||||||||||||||||||||||||||||
September 30, | December 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Renewable energy LLCs (a) | |||||||||||||||||||||||||||||||||||
Excess and Surplus Lines | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Corporate & Other | ( | ||||||||||||||||||||||||||||||||||
( | ( | ||||||||||||||||||||||||||||||||||
Renewable energy notes receivable (b) | |||||||||||||||||||||||||||||||||||
Excess and Surplus Lines | |||||||||||||||||||||||||||||||||||
Corporate & Other | |||||||||||||||||||||||||||||||||||
Limited partnerships (c) | |||||||||||||||||||||||||||||||||||
Excess and Surplus Lines | ( | ( | |||||||||||||||||||||||||||||||||
Corporate & Other | ( | ( | |||||||||||||||||||||||||||||||||
( | ( | ||||||||||||||||||||||||||||||||||
Bank holding companies (d) | |||||||||||||||||||||||||||||||||||
Excess and Surplus Lines | |||||||||||||||||||||||||||||||||||
Corporate & Other | |||||||||||||||||||||||||||||||||||
Total other invested assets | |||||||||||||||||||||||||||||||||||
Excess and Surplus Lines | ( | ||||||||||||||||||||||||||||||||||
Corporate & Other | ( | ||||||||||||||||||||||||||||||||||
$ | $ | $ | ( | $ | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
Life (Years) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||||||
Trademarks | Indefinite | $ | $ | — | $ | $ | — | ||||||||||||||||||||||
Insurance licenses and authorities | Indefinite | — | — | ||||||||||||||||||||||||||
Identifiable intangibles not subject to amortization | — | — | |||||||||||||||||||||||||||
Broker relationships | |||||||||||||||||||||||||||||
Identifiable intangible assets subject to amortization | |||||||||||||||||||||||||||||
$ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||||||||||
Net (loss) income | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Less: Dividends on Series A preferred shares | ( | ( | |||||||||||||||||||||
Net (loss) income available to common shareholders | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Dilutive potential common shares | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Net (loss) income per common share: | |||||||||||||||||||||||
Basic | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Dilutive potential common shares | |||||||||||||||||||||||
Diluted | $ | ( | $ | ( | $ | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Add: Incurred losses and loss adjustment expenses net of reinsurance: | |||||||||||||||||||||||
Current year | |||||||||||||||||||||||
Prior years - retroactive reinsurance | |||||||||||||||||||||||
Prior years - excluding retroactive reinsurance | ( | ||||||||||||||||||||||
Total incurred losses and loss and adjustment expenses | |||||||||||||||||||||||
Deduct: Loss and loss adjustment expense payments net of reinsurance: | |||||||||||||||||||||||
Current year | |||||||||||||||||||||||
Prior years | |||||||||||||||||||||||
Total loss and loss adjustment expense payments | |||||||||||||||||||||||
Deduct: Deferred reinsurance gain - retroactive reinsurance | |||||||||||||||||||||||
Deduct: Loss reserves ceded in Retrocession and Commercial Auto LPT Agreements | — | ||||||||||||||||||||||
Add: Changes in reinsurance recoverable of Retrocession Agreement unrelated to net reserve activity | |||||||||||||||||||||||
Reserve for losses and loss adjustment expenses net of reinsurance recoverables at end of period | |||||||||||||||||||||||
Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period | |||||||||||||||||||||||
Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Unrealized losses arising during the period, before U.S. income taxes | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
U.S. income taxes | |||||||||||||||||||||||
Unrealized losses arising during the period, net of U.S. income taxes | ( | ( | ( | ( | |||||||||||||||||||
Less reclassification adjustment: | |||||||||||||||||||||||
Net realized investment (losses) gains | ( | ||||||||||||||||||||||
U.S. income taxes | ( | ( | ( | ||||||||||||||||||||
Reclassification adjustment for investment (losses) gains realized in net income | ( | ||||||||||||||||||||||
Other comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( |
Excess and Surplus Lines | Specialty Admitted Insurance | Casualty Reinsurance | Corporate and Other | Total | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||
Gross written premiums | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net earned premiums | |||||||||||||||||||||||||||||
Underwriting profit of operating segments | |||||||||||||||||||||||||||||
Net investment income | ( | ||||||||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||
Segment revenues | ( | ||||||||||||||||||||||||||||
Segment goodwill | |||||||||||||||||||||||||||||
Segment assets | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||
Gross written premiums | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net earned premiums | |||||||||||||||||||||||||||||
Underwriting (loss) profit of operating segments | ( | ( | ( | ||||||||||||||||||||||||||
Net investment income | |||||||||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||
Segment revenues | |||||||||||||||||||||||||||||
Segment goodwill | |||||||||||||||||||||||||||||
Segment assets | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||
Gross written premiums | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net earned premiums | |||||||||||||||||||||||||||||
Underwriting profit (loss) of operating segments | ( | ||||||||||||||||||||||||||||
Net investment income | ( | ||||||||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||
Segment revenues | |||||||||||||||||||||||||||||
Segment goodwill | |||||||||||||||||||||||||||||
Segment assets | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||
Gross written premiums | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net earned premiums | |||||||||||||||||||||||||||||
Underwriting (loss) profit of operating segments | ( | ( | ( | ||||||||||||||||||||||||||
Net investment income | |||||||||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||
Segment revenues | |||||||||||||||||||||||||||||
Segment goodwill | |||||||||||||||||||||||||||||
Segment assets |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Underwriting profit (loss) of the operating segments: | |||||||||||||||||||||||
Excess and Surplus Lines | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Specialty Admitted Insurance | |||||||||||||||||||||||
Casualty Reinsurance | ( | ( | ( | ||||||||||||||||||||
Total underwriting profit (loss) of operating segments | ( | ( | |||||||||||||||||||||
Other operating expenses of the Corporate and Other segment | ( | ( | ( | ( | |||||||||||||||||||
Underwriting profit (loss) | ( | ( | |||||||||||||||||||||
Losses and loss adjustment expenses - retroactive reinsurance | ( | ( | |||||||||||||||||||||
Net investment income | |||||||||||||||||||||||
Net realized and unrealized (losses) gains on investments | ( | ( | |||||||||||||||||||||
Amortization of intangible assets | ( | ( | ( | ( | |||||||||||||||||||
Other income and expenses | ( | ( | |||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
(Loss) income before income taxes | $ | ( | $ | ( | $ | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Amortization of policy acquisition costs | $ | $ | $ | $ | |||||||||||||||||||
Other underwriting expenses of the operating segments | |||||||||||||||||||||||
Other operating expenses of the Corporate and Other segment | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fair Value Measurements Using | |||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | |||||||||||||||||||||||
State and municipal | $ | $ | $ | $ | |||||||||||||||||||
Residential mortgage-backed | |||||||||||||||||||||||
Corporate | |||||||||||||||||||||||
Commercial mortgage and asset-backed | |||||||||||||||||||||||
U.S. Treasury securities and obligations guaranteed by the U.S. government | |||||||||||||||||||||||
Total fixed maturity securities, available-for-sale | $ | $ | $ | $ | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Preferred stock | |||||||||||||||||||||||
Common stock | |||||||||||||||||||||||
Total equity securities | $ | $ | $ | $ | |||||||||||||||||||
Bank loan participations | $ | $ | $ | $ | |||||||||||||||||||
Short-term investments | $ | $ | $ | $ |
Fair Value Measurements Using | |||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | |||||||||||||||||||||||
State and municipal | $ | $ | $ | $ | |||||||||||||||||||
Residential mortgage-backed | |||||||||||||||||||||||
Corporate | |||||||||||||||||||||||
Commercial mortgage and asset-backed | |||||||||||||||||||||||
U.S. Treasury securities and obligations guaranteed by the U.S. government | |||||||||||||||||||||||
Total fixed maturity securities, available-for-sale | $ | $ | $ | $ | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Preferred stock | |||||||||||||||||||||||
Common stock | |||||||||||||||||||||||
Total equity securities | $ | $ | $ | $ | |||||||||||||||||||
Bank loan participations | $ | $ | $ | $ | |||||||||||||||||||
Short-term investments | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
Transfers out of Level 3 | |||||||||||||||||||||||
Transfers in to Level 3 | |||||||||||||||||||||||
Purchases | |||||||||||||||||||||||
Sales | ( | ( | |||||||||||||||||||||
Maturities, calls and paydowns | ( | ( | |||||||||||||||||||||
Amortization of discount | |||||||||||||||||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||||||||||
Included in earnings | ( | ( | |||||||||||||||||||||
Included in other comprehensive income | |||||||||||||||||||||||
Ending balance | $ | $ | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Fixed maturity securities, available-for-sale | $ | $ | $ | $ | |||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Bank loan participations | |||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||
Restricted cash equivalents | |||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||
Other invested assets – notes receivable | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Senior debt | |||||||||||||||||||||||
Junior subordinated debt |
Date of Declaration | Dividend per Common Share | Payable to Shareholders of Record on | Payment Date | Total Amount | ||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||
February 16, 2022 | $ | March 14, 2022 | March 31, 2022 | $ | ||||||||||||||||||||||
April 28, 2022 | $ | June 13, 2022 | June 30, 2022 | |||||||||||||||||||||||
July 26, 2022 | $ | September 12, 2022 | September 30, 2022 | |||||||||||||||||||||||
$ | $ | |||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||
February 24, 2021 | $ | March 15, 2021 | March 31, 2021 | $ | ||||||||||||||||||||||
April 27, 2021 | $ | June 14, 2021 | June 30, 2021 | $ | ||||||||||||||||||||||
July 27, 2021 | $ | September 13, 2021 | September 30, 2021 | $ | ||||||||||||||||||||||
$ | $ |
Nine Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Shares | Weighted- Average Exercise Price | Shares | Weighted- Average Exercise Price | ||||||||||||||||||||
Outstanding: | |||||||||||||||||||||||
Beginning of period | $ | $ | |||||||||||||||||||||
Granted | $ | $ | |||||||||||||||||||||
Exercised | $ | ( | $ | ||||||||||||||||||||
Forfeited | $ | ( | $ | ||||||||||||||||||||
End of period | $ | $ | |||||||||||||||||||||
Exercisable, end of period | $ | $ |
Nine Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Shares | Weighted- Average Grant Date Fair Value | Shares | Weighted- Average Grant Date Fair Value | ||||||||||||||||||||
Unvested, beginning of period | $ | $ | |||||||||||||||||||||
Granted | $ | $ | |||||||||||||||||||||
Vested | ( | $ | ( | $ | |||||||||||||||||||
Forfeited | ( | $ | ( | $ | |||||||||||||||||||
Unvested, end of period | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Share based compensation expense | $ | $ | $ | $ | |||||||||||||||||||
U.S. tax benefit on share based compensation expense |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | ||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||
Gross written premiums | $ | 358,505 | $ | 346,599 | 3.4 | % | $ | 1,118,155 | $ | 1,100,000 | 1.7 | % | |||||||||||||||||||||||
Net retention | 53.1 | % | 45.6 | % | 50.2 | % | 47.9 | % | |||||||||||||||||||||||||||
Net written premiums | $ | 190,251 | $ | 158,210 | 20.3 | % | $ | 560,801 | $ | 526,413 | 6.5 | % | |||||||||||||||||||||||
Net earned premiums | $ | 190,189 | $ | 170,608 | 11.5 | % | $ | 566,275 | $ | 503,906 | 12.4 | % | |||||||||||||||||||||||
Losses and loss adjustment expenses excluding retroactive reinsurance | (132,235) | (166,078) | (20.4) | % | (389,212) | (549,578) | (29.2) | % | |||||||||||||||||||||||||||
Other operating expenses | (46,670) | (42,171) | 10.7 | % | (144,067) | (133,511) | 7.9 | % | |||||||||||||||||||||||||||
Underwriting profit (loss) (1), (2) | 11,284 | (37,641) | — | 32,996 | (179,183) | — | |||||||||||||||||||||||||||||
Losses and loss adjustment expenses - retroactive reinsurance | (20,773) | — | — | (20,773) | — | — | |||||||||||||||||||||||||||||
Net investment income | 17,306 | 15,289 | 13.2 | % | 48,278 | 44,726 | 7.9 | % | |||||||||||||||||||||||||||
Net realized and unrealized (losses) gains on investments | (7,754) | 3,983 | — | (29,874) | 13,738 | — | |||||||||||||||||||||||||||||
Other income and expense | 364 | (615) | — | 112 | (1,964) | — | |||||||||||||||||||||||||||||
Interest expense | (4,950) | (2,227) | 122.3 | % | (11,291) | (6,692) | 68.7 | % | |||||||||||||||||||||||||||
Amortization of intangible assets | (90) | (90) | — | (272) | (272) | — | |||||||||||||||||||||||||||||
(Loss) income before taxes | (4,613) | (21,301) | (78.3) | % | 19,176 | (129,647) | — | ||||||||||||||||||||||||||||
Income tax expense (benefit) | 8 | 2,588 | (99.7) | % | 5,928 | (23,141) | — | ||||||||||||||||||||||||||||
Net (loss) income | $ | (4,621) | $ | (23,889) | (80.7) | % | $ | 13,248 | $ | (106,506) | — | ||||||||||||||||||||||||
Dividends on Series A Preferred Shares | (2,625) | — | — | (6,125) | — | — | |||||||||||||||||||||||||||||
Net (loss) income available to common shareholders | $ | (7,246) | $ | (23,889) | (69.7) | % | $ | 7,123 | $ | (106,506) | — | ||||||||||||||||||||||||
Adjusted net operating income (loss) (1) | $ | 15,499 | $ | (26,814) | — | $ | 49,391 | $ | (116,780) | — | |||||||||||||||||||||||||
Ratios: | |||||||||||||||||||||||||||||||||||
Loss ratio | 69.5 | % | 97.3 | % | 68.7 | % | 109.1 | % | |||||||||||||||||||||||||||
Expense ratio | 24.6 | % | 24.8 | % | 25.5 | % | 26.5 | % | |||||||||||||||||||||||||||
Combined ratio | 94.1 | % | 122.1 | % | 94.2 | % | 135.6 | % | |||||||||||||||||||||||||||
Accident year loss ratio | 70.1 | % | 71.5 | % | 68.0 | % | 67.2 | % | |||||||||||||||||||||||||||
Accident year loss ratio ex-cat (3) | 67.5 | % | 68.6 | % | 67.1 | % | 66.2 | % |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | ||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||
Gross written premiums: | |||||||||||||||||||||||||||||||||||
Excess and Surplus Lines | $ | 204,785 | $ | 217,673 | (5.9) | % | $ | 675,702 | $ | 613,045 | 10.2 | % | |||||||||||||||||||||||
Specialty Admitted Insurance | 123,389 | 121,175 | 1.8 | % | 374,066 | 377,400 | (0.9) | % | |||||||||||||||||||||||||||
Casualty Reinsurance | 30,331 | 7,751 | 291.3 | % | 68,387 | 109,555 | (37.6) | % | |||||||||||||||||||||||||||
$ | 358,505 | $ | 346,599 | 3.4 | % | $ | 1,118,155 | $ | 1,100,000 | 1.7 | % | ||||||||||||||||||||||||
Net written premiums: | |||||||||||||||||||||||||||||||||||
Excess and Surplus Lines | $ | 140,984 | $ | 127,881 | 10.2 | % | $ | 432,698 | $ | 371,477 | 16.5 | % | |||||||||||||||||||||||
Specialty Admitted Insurance | 18,929 | 22,578 | (16.2) | % | 57,524 | 66,081 | (12.9) | % | |||||||||||||||||||||||||||
Casualty Reinsurance | 30,338 | 7,751 | 291.4 | % | 70,579 | 88,855 | (20.6) | % | |||||||||||||||||||||||||||
$ | 190,251 | $ | 158,210 | 20.3 | % | $ | 560,801 | $ | 526,413 | 6.5 | % | ||||||||||||||||||||||||
Net earned premiums: | |||||||||||||||||||||||||||||||||||
Excess and Surplus Lines | $ | 139,095 | $ | 119,760 | 16.1 | % | $ | 408,280 | $ | 351,413 | 16.2 | % | |||||||||||||||||||||||
Specialty Admitted Insurance | 17,824 | 19,704 | (9.5) | % | 55,283 | 54,656 | 1.1 | % | |||||||||||||||||||||||||||
Casualty Reinsurance | 33,270 | 31,144 | 6.8 | % | 102,712 | 97,837 | 5.0 | % | |||||||||||||||||||||||||||
$ | 190,189 | $ | 170,608 | 11.5 | % | $ | 566,275 | $ | 503,906 | 12.4 | % |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | ||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||
Excess Casualty | $ | 65,377 | $ | 73,170 | (10.7) | % | $ | 220,328 | $ | 204,704 | 7.6 | % | |||||||||||||||||||||||
General Casualty | 33,321 | 31,899 | 4.5 | % | 122,835 | 103,120 | 19.1 | % | |||||||||||||||||||||||||||
Manufacturers & Contractors | 38,222 | 34,539 | 10.7 | % | 116,250 | 102,017 | 14.0 | % | |||||||||||||||||||||||||||
Excess Property | 9,376 | 10,787 | (13.1) | % | 38,924 | 35,306 | 10.2 | % | |||||||||||||||||||||||||||
Energy | 8,094 | 10,796 | (25.0) | % | 32,267 | 32,516 | (0.8) | % | |||||||||||||||||||||||||||
Small Business | 8,364 | 8,116 | 3.1 | % | 27,739 | 24,201 | 14.6 | % | |||||||||||||||||||||||||||
Life Sciences | 7,050 | 10,796 | (34.7) | % | 23,143 | 24,819 | (6.8) | % | |||||||||||||||||||||||||||
All other Core E&S divisions | 18,816 | 19,477 | (3.4) | % | 59,010 | 55,494 | 6.3 | % | |||||||||||||||||||||||||||
Total Core E&S divisions | 188,620 | 199,580 | (5.5) | % | 640,496 | 582,177 | 10.0 | % | |||||||||||||||||||||||||||
Commercial Auto | $ | 16,165 | $ | 18,093 | (10.7) | % | 35,206 | 30,868 | 14.1 | % | |||||||||||||||||||||||||
Excess and Surplus Lines gross written premium | $ | 204,785 | $ | 217,673 | (5.9) | % | $ | 675,702 | $ | 613,045 | 10.2 | % |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | ||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||
Individual risk workers’ compensation premium | $ | 12,344 | $ | 13,461 | (8.3) | % | $ | 39,833 | $ | 43,897 | (9.3) | % | |||||||||||||||||||||||
Fronting and program premium | 111,045 | 107,714 | 3.1 | % | 334,233 | 333,503 | 0.2 | % | |||||||||||||||||||||||||||
Specialty Admitted gross written premium | $ | 123,389 | $ | 121,175 | 1.8 | % | $ | 374,066 | $ | 377,400 | (0.9) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Excess and Surplus Lines | 68.8 | % | 58.7 | % | 64.0 | % | 60.6 | % | |||||||||||||||
Specialty Admitted Insurance | 15.3 | % | 18.6 | % | 15.4 | % | 17.5 | % | |||||||||||||||
Casualty Reinsurance | 100.0 | % | 100.0 | % | 103.2 | % | 81.1 | % | |||||||||||||||
Total | 53.1 | % | 45.6 | % | 50.2 | % | 47.9 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Excess and Surplus Lines | 88.2 | % | 118.0 | % | 85.3 | % | 141.4 | % | |||||||||||||||
Specialty Admitted Insurance | 98.4 | % | 84.3 | % | 96.8 | % | 88.1 | % | |||||||||||||||
Casualty Reinsurance | 90.9 | % | 138.2 | % | 103.6 | % | 117.2 | % | |||||||||||||||
Total | 94.1 | % | 122.1 | % | 94.2 | % | 135.6 | % |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | ||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||
Gross written premiums | $ | 204,785 | $ | 217,673 | (5.9) | % | $ | 675,702 | $ | 613,045 | 10.2 | % | |||||||||||||||||||||||
Net written premiums | $ | 140,984 | $ | 127,881 | 10.2 | % | $ | 432,698 | $ | 371,477 | 16.5 | % | |||||||||||||||||||||||
Net earned premiums | $ | 139,095 | $ | 119,760 | 16.1 | % | $ | 408,280 | $ | 351,413 | 16.2 | % | |||||||||||||||||||||||
Losses and loss adjustment expenses excluding retroactive reinsurance | (96,355) | (117,214) | (17.8) | % | (270,464) | (428,550) | (36.9) | % | |||||||||||||||||||||||||||
Underwriting expenses | (26,338) | (24,073) | 9.4 | % | (77,623) | (68,419) | 13.5 | % | |||||||||||||||||||||||||||
Underwriting profit (loss) (1) | $ | 16,402 | $ | (21,527) | — | $ | 60,193 | $ | (145,556) | — | |||||||||||||||||||||||||
Ratios: | |||||||||||||||||||||||||||||||||||
Loss ratio | 69.3 | % | 97.9 | % | 66.2 | % | 122.0 | % | |||||||||||||||||||||||||||
Expense ratio | 18.9 | % | 20.1 | % | 19.1 | % | 19.4 | % | |||||||||||||||||||||||||||
Combined ratio | 88.2 | % | 118.0 | % | 85.3 | % | 141.4 | % | |||||||||||||||||||||||||||
Accident year loss ratio | 69.2 | % | 73.2 | % | 66.2 | % | 67.7 | % | |||||||||||||||||||||||||||
Accident year loss ratio ex-cat (2) | 65.6 | % | 69.0 | % | 65.0 | % | 66.3 | % |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | ||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||
Gross written premiums | $ | 123,389 | $ | 121,175 | 1.8 | % | $ | 374,066 | $ | 377,400 | (0.9) | % | |||||||||||||||||||||||
Net written premiums | $ | 18,929 | $ | 22,578 | (16.2) | % | $ | 57,524 | $ | 66,081 | (12.9) | % | |||||||||||||||||||||||
Net earned premiums | $ | 17,824 | $ | 19,704 | (9.5) | % | $ | 55,283 | $ | 54,656 | 1.1 | % | |||||||||||||||||||||||
Losses and loss adjustment expenses | (15,377) | (15,263) | 0.7 | % | (44,029) | (39,371) | 11.8 | % | |||||||||||||||||||||||||||
Underwriting expenses | (2,162) | (1,357) | 59.3 | % | (9,508) | (8,797) | 8.1 | % | |||||||||||||||||||||||||||
Underwriting profit (1), (2) | $ | 285 | $ | 3,084 | (90.8) | % | $ | 1,746 | $ | 6,488 | (73.1) | % | |||||||||||||||||||||||
Ratios: | |||||||||||||||||||||||||||||||||||
Loss ratio | 86.3 | % | 77.5 | % | 79.6 | % | 72.0 | % | |||||||||||||||||||||||||||
Expense ratio | 12.1 | % | 6.8 | % | 17.2 | % | 16.1 | % | |||||||||||||||||||||||||||
Combined ratio | 98.4 | % | 84.3 | % | 96.8 | % | 88.1 | % | |||||||||||||||||||||||||||
Accident year loss ratio | 93.4 | % | 80.0 | % | 84.6 | % | 76.6 | % |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | ||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||
Gross written premiums | $ | 30,331 | $ | 7,751 | 291.3 | % | $ | 68,387 | $ | 109,555 | (37.6) | % | |||||||||||||||||||||||
Net written premiums | $ | 30,338 | $ | 7,751 | 291.4 | % | $ | 70,579 | $ | 88,855 | (20.6) | % | |||||||||||||||||||||||
Net earned premiums | $ | 33,270 | $ | 31,144 | 6.8 | % | $ | 102,712 | $ | 97,837 | 5.0 | % | |||||||||||||||||||||||
Losses and loss adjustment expenses | (20,503) | (33,601) | (39.0) | % | (74,719) | (81,657) | (8.5) | % | |||||||||||||||||||||||||||
Underwriting expenses | (9,723) | (9,454) | 2.8 | % | (31,727) | (33,037) | (4.0) | % | |||||||||||||||||||||||||||
Underwriting profit (loss) (1) | $ | 3,044 | $ | (11,911) | — | $ | (3,734) | $ | (16,857) | (77.8) | % | ||||||||||||||||||||||||
Ratios: | |||||||||||||||||||||||||||||||||||
Loss ratio | 61.6 | % | 107.9 | % | 72.7 | % | 83.5 | % | |||||||||||||||||||||||||||
Expense ratio | 29.3 | % | 30.3 | % | 30.9 | % | 33.7 | % | |||||||||||||||||||||||||||
Combined ratio | 90.9 | % | 138.2 | % | 103.6 | % | 117.2 | % | |||||||||||||||||||||||||||
Accident year loss ratio | 61.6 | % | 59.5 | % | 66.1 | % | 60.4 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||
Fixed maturity securities | $ | 12,267 | $ | 10,437 | $ | 34,878 | $ | 32,683 | |||||||||||||||
Bank loan participations | 3,370 | 2,836 | 8,432 | 8,230 | |||||||||||||||||||
Equity securities | 1,390 | 1,225 | 3,939 | 3,636 | |||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||
Renewable energy investments | 134 | 918 | 3,068 | 636 | |||||||||||||||||||
Other private investments | (558) | 842 | (1,082) | 2,292 | |||||||||||||||||||
(424) | 1,760 | 1,986 | 2,928 | ||||||||||||||||||||
Cash, cash equivalents, restricted cash equivalents and short-term investments | 1,687 | 59 | 2,067 | 232 | |||||||||||||||||||
Gross investment income | 18,290 | 16,317 | 51,302 | 47,709 | |||||||||||||||||||
Investment expense | (984) | (1,028) | (3,024) | (2,983) | |||||||||||||||||||
Net investment income | $ | 17,306 | $ | 15,289 | $ | 48,278 | $ | 44,726 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cash and invested assets | 3.0 | % | 2.7 | % | 2.8 | % | 2.8 | % | |||||||||||||||
Fixed maturity securities | 3.3 | % | 2.7 | % | 2.9 | % | 2.8 | % |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Cost or Amortized Cost | Fair Value | % of Total Fair Value | Cost or Amortized Cost | Fair Value | % of Total Fair Value | ||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | |||||||||||||||||||||||||||||||||||
State and municipal | $ | 377,410 | $ | 320,897 | 19.6 | % | $ | 323,773 | $ | 333,717 | 19.9 | % | |||||||||||||||||||||||
Residential mortgage-backed | 388,386 | 348,927 | 21.3 | % | 246,586 | 246,631 | 14.7 | % | |||||||||||||||||||||||||||
Corporate | 669,209 | 593,957 | 36.2 | % | 711,930 | 732,335 | 43.7 | % | |||||||||||||||||||||||||||
Commercial mortgage and asset-backed | 328,022 | 303,845 | 18.5 | % | 301,247 | 304,488 | 18.2 | % | |||||||||||||||||||||||||||
U.S. Treasury securities and obligations guaranteed by the U.S. government | 76,309 | 71,622 | 4.4 | % | 60,329 | 60,390 | 3.5 | % | |||||||||||||||||||||||||||
Total fixed maturity securities, available-for-sale | $ | 1,839,336 | $ | 1,639,248 | 100.0 | % | $ | 1,643,865 | $ | 1,677,561 | 100.0 | % |
Standard & Poor’s or Equivalent Designation | Fair Value | % of Total | |||||||||
($ in thousands) | |||||||||||
AAA | $ | 368,400 | 22.5 | % | |||||||
AA | 687,406 | 41.9 | % | ||||||||
A | 432,792 | 26.4 | % | ||||||||
BBB | 148,074 | 9.0 | % | ||||||||
Below BBB and unrated | 2,576 | 0.2 | % | ||||||||
Total | $ | 1,639,248 | 100.0 | % |
September 30, 2022 | |||||||||||||||||
Amortized Cost | Fair Value | % of Total Value | |||||||||||||||
($ in thousands) | |||||||||||||||||
Due in: | |||||||||||||||||
One year or less | $ | 50,179 | $ | 48,892 | 3.0 | % | |||||||||||
After one year through five years | 439,524 | 409,673 | 25.0 | % | |||||||||||||
After five years through ten years | 351,577 | 300,364 | 18.3 | % | |||||||||||||
After ten years | 281,648 | 227,547 | 13.9 | % | |||||||||||||
Residential mortgage-backed | 388,386 | 348,927 | 21.3 | % | |||||||||||||
Commercial mortgage and asset-backed | 328,022 | 303,845 | 18.5 | % | |||||||||||||
Total | $ | 1,839,336 | $ | 1,639,248 | 100.0 | % |
Gross Reserves at September 30, 2022 | |||||||||||||||||
Case | IBNR | Total | |||||||||||||||
($ in thousands) | |||||||||||||||||
Excess and Surplus Lines | $ | 607,079 | $ | 1,015,398 | $ | 1,622,477 | |||||||||||
Specialty Admitted Insurance | 337,642 | 400,085 | 737,727 | ||||||||||||||
Casualty Reinsurance | 141,184 | 285,312 | 426,496 | ||||||||||||||
Total | $ | 1,085,905 | $ | 1,700,795 | $ | 2,786,700 |
Net Reserves at September 30, 2022 | |||||||||||||||||
Case | IBNR | Total | |||||||||||||||
($ in thousands) | |||||||||||||||||
Excess and Surplus Lines | $ | 325,752 | $ | 618,822 | $ | 944,574 | |||||||||||
Specialty Admitted Insurance | 45,810 | 62,024 | 107,834 | ||||||||||||||
Casualty Reinsurance | 51,820 | 97,015 | 148,835 | ||||||||||||||
Total | $ | 423,382 | $ | 777,861 | $ | 1,201,243 |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
($ in thousands) | |||||||||||
Cash and cash equivalents provided by (used in): | |||||||||||
Operating activities (excluding restricted cash equivalents) | $ | 167,649 | $ | (211,394) | |||||||
Investing activities | (262,181) | 111,759 | |||||||||
Financing activities | 91,953 | 157,926 | |||||||||
Change in cash and cash equivalents | (2,579) | 58,291 | |||||||||
Change in restricted cash equivalents (operating activities) | 480 | (849,920) | |||||||||
Change in cash, cash equivalents, and restricted cash equivalents | $ | (2,099) | $ | (791,629) |
James River Capital Trust I | James River Capital Trust II | James River Capital Trust III | James River Capital Trust IV | Franklin Holdings II (Bermuda) Capital Trust I | |||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||
Issue date | May 26, 2004 | December 15, 2004 | June 15, 2006 | December 11, 2007 | January 10, 2008 | ||||||||||||||||||||||||
Principal amount of trust preferred securities | $7,000 | $15,000 | $20,000 | $54,000 | $30,000 | ||||||||||||||||||||||||
Principal amount of junior subordinated debt | $7,217 | $15,464 | $20,619 | $55,670 | $30,928 | ||||||||||||||||||||||||
Carrying amount of junior subordinated debt net of repurchases | $7,217 | $15,464 | $20,619 | $44,827 | $15,928 | ||||||||||||||||||||||||
Maturity date of junior subordinated debt, unless accelerated earlier | May 24, 2034 | December 15, 2034 | June 15, 2036 | December 15, 2037 | March 15, 2038 | ||||||||||||||||||||||||
Trust common stock | $217 | $464 | $619 | $1,670 | $928 | ||||||||||||||||||||||||
Interest rate, per annum | Three-Month LIBOR plus 4.0% | Three-Month LIBOR plus 3.4% | Three-Month LIBOR plus 3.0% | Three-Month LIBOR plus 3.1% | Three-Month LIBOR plus 4.0% |
Line of Business | Company Retention | |||||||
Casualty | ||||||||
Primary Specialty Casualty, including Professional Liability | Up to $1.0 million per occurrence, subject to a $1.0 million aggregate deductible.(1) | |||||||
Primary Casualty | Up to $2.0 million per occurrence.(2) | |||||||
Excess Casualty | Up to $2.0 million per occurrence.(3) | |||||||
Property | Up to $5.0 million per event.(4) |
Line of Business | Coverage | |||||||
Casualty | ||||||||
Workers’ Compensation | Quota share coverage for 65.5% of the first $1.0 million.(1)(2) Excess of loss coverage for $29.0 million in excess of $1.0 million.(1)(2) | |||||||
Auto Programs | Quota share coverage for 70-90% of limits up to $1.5 million liability and $7.5 million physical damage per occurrence. | |||||||
General Liability & Professional Liability – Programs | Quota share coverage for 65%-100% of limits up to $3.0 million per occurrence. | |||||||
Umbrella and Excess Casualty - Programs | Quota share coverage for at least 65% of limits up to $10.0 million per occurrence, and 75% of excess of loss coverage for $5.0 million in excess of $10.0 million. | |||||||
Property | ||||||||
Property within Package - Programs | Quota share coverage for 100% of limits up to $40.0 million per occurrence. | |||||||
Excess Property | Quota share coverage for 100% of limits up to $16.9 million. | |||||||
Catastrophe Coverage | Excess of Loss coverage for $59.0 million in excess of $1.0 million per occurrence. | |||||||
Aviation Programs | Quota share coverage for 80% of limits up to $20 million liability and $2.5 million hull per occurrence, each aircraft; and excess of loss coverage for up to $8.7M excess of $300 thousand of our 20% share of the quota share each occurrence. |
Nine Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Shares | Weighted- Average Exercise Price | Shares | Weighted- Average Exercise Price | ||||||||||||||||||||
Outstanding: | |||||||||||||||||||||||
Beginning of period | 287,974 | $ | 35.26 | 463,324 | $ | 32.25 | |||||||||||||||||
Granted | — | $ | — | — | $ | — | |||||||||||||||||
Exercised | — | $ | — | (41,392) | $ | 24.87 | |||||||||||||||||
Forfeited | — | $ | — | (29,418) | $ | 38.81 | |||||||||||||||||
End of period | 287,974 | $ | 35.26 | 392,514 | $ | 32.53 | |||||||||||||||||
Exercisable, end of period | 287,974 | $ | 35.26 | 392,514 | $ | 32.53 |
Nine Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Shares | Weighted- Average Grant Date Fair Value | Shares | Weighted- Average Grant Date Fair Value | ||||||||||||||||||||
Unvested, beginning of period | 292,135 | $ | 45.89 | 399,856 | $ | 43.59 | |||||||||||||||||
Granted | 545,450 | $ | 20.54 | 139,682 | $ | 50.22 | |||||||||||||||||
Vested | (112,527) | $ | 45.49 | (165,131) | $ | 41.86 | |||||||||||||||||
Forfeited | (9,760) | $ | 22.97 | (56,575) | $ | 45.91 | |||||||||||||||||
Unvested, end of period | 715,298 | $ | 26.94 | 317,832 | $ | 47.00 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Excess and Surplus Lines: | |||||||||||||||||||||||
Loss Ratio | 69.3 | % | 97.9 | % | 66.2 | % | 122.0 | % | |||||||||||||||
Impact of retroactive reinsurance | 14.9 | % | — | % | 5.1 | % | — | % | |||||||||||||||
Loss Ratio including impact of retroactive reinsurance | 84.2 | % | 97.9 | % | 71.3 | % | 122.0 | % | |||||||||||||||
Combined Ratio | 88.2 | % | 118.0 | % | 85.3 | % | 141.4 | % | |||||||||||||||
Impact of retroactive reinsurance | 14.9 | % | — | % | 5.1 | % | — | % | |||||||||||||||
Combined Ratio including impact of retroactive reinsurance | 103.1 | % | 118.0 | % | 90.4 | % | 141.4 | % | |||||||||||||||
Consolidated: | |||||||||||||||||||||||
Loss Ratio | 69.5 | % | 97.3 | % | 68.7 | % | 109.1 | % | |||||||||||||||
Impact of retroactive reinsurance | 10.9 | % | — | % | 3.7 | % | — | % | |||||||||||||||
Loss Ratio including impact of retroactive reinsurance | 80.4 | % | 97.3 | % | 72.4 | % | 109.1 | % | |||||||||||||||
Combined Ratio | 94.1 | % | 122.1 | % | 94.2 | % | 135.6 | % | |||||||||||||||
Impact of retroactive reinsurance | 10.9 | % | — | % | 3.7 | % | — | % | |||||||||||||||
Combined Ratio including impact of retroactive reinsurance | 105.0 | % | 122.1 | % | 97.9 | % | 135.6 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Underwriting profit (loss) of the operating segments: | |||||||||||||||||||||||
Excess and Surplus Lines | $ | 16,402 | $ | (21,527) | $ | 60,193 | $ | (145,556) | |||||||||||||||
Specialty Admitted Insurance | 285 | 3,084 | 1,746 | 6,488 | |||||||||||||||||||
Casualty Reinsurance | 3,044 | (11,911) | (3,734) | (16,857) | |||||||||||||||||||
Total underwriting profit (loss) of operating segments | 19,731 | (30,354) | 58,205 | (155,925) | |||||||||||||||||||
Other operating expenses of the Corporate and Other segment | (8,447) | (7,287) | (25,209) | (23,258) | |||||||||||||||||||
Underwriting profit (loss) (1) | 11,284 | (37,641) | 32,996 | (179,183) | |||||||||||||||||||
Losses and loss adjustment expenses - retroactive reinsurance | (20,773) | — | (20,773) | — | |||||||||||||||||||
Net investment income | 17,306 | 15,289 | 48,278 | 44,726 | |||||||||||||||||||
Net realized and unrealized (losses) gains on investments | (7,754) | 3,983 | (29,874) | 13,738 | |||||||||||||||||||
Amortization of intangible assets | (90) | (90) | (272) | (272) | |||||||||||||||||||
Other income and expenses | 364 | (615) | 112 | (1,964) | |||||||||||||||||||
Interest expense | (4,950) | (2,227) | (11,291) | (6,692) | |||||||||||||||||||
(Loss) income before income taxes | $ | (4,613) | $ | (21,301) | $ | 19,176 | $ | (129,647) |
Three Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Income Before Taxes | Net Income | Loss Before Taxes | Net Loss | ||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||
Loss available to common shareholders | $ | (7,238) | $ | (7,246) | $ | (21,301) | $ | (23,889) | |||||||||||||||
Losses and loss adjustment expenses - retroactive reinsurance | 20,773 | 16,411 | — | — | |||||||||||||||||||
Net realized and unrealized investment losses (gains) | 7,754 | 6,581 | (3,983) | (3,422) | |||||||||||||||||||
Other (income) expenses | (247) | (247) | 625 | 497 | |||||||||||||||||||
Adjusted net operating income (loss) | $ | 21,042 | $ | 15,499 | $ | (24,659) | $ | (26,814) |
Nine Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Income Before Taxes | Net Income | Loss Before Taxes | Net Loss | ||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||
Income (loss) available to common shareholders | $ | 13,051 | $ | 7,123 | $ | (129,647) | $ | (106,506) | |||||||||||||||
Losses and loss adjustment expenses - retroactive reinsurance | 20,773 | 16,411 | — | — | |||||||||||||||||||
Net realized and unrealized investment losses (gains) | 29,874 | 25,757 | (13,738) | (11,914) | |||||||||||||||||||
Other expenses | 100 | 100 | 1,963 | 1,640 | |||||||||||||||||||
Adjusted net operating income (loss) | $ | 63,798 | $ | 49,391 | $ | (141,422) | $ | (116,780) |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
Equity | Equity per Share | Equity | Equity per Share | ||||||||||||||||||||
($ in thousands, except share amounts) | |||||||||||||||||||||||
Shareholders’ equity | $ | 526,804 | $ | 14.07 | $ | 725,362 | $ | 19.41 | |||||||||||||||
Series A redeemable preferred shares | 144,898 | — | |||||||||||||||||||||
Deferred reinsurance gain | 20,773 | — | |||||||||||||||||||||
Less: | |||||||||||||||||||||||
Goodwill | 181,831 | 181,831 | |||||||||||||||||||||
Intangible assets, net | 35,767 | 36,039 | |||||||||||||||||||||
Tangible equity | $ | 474,877 | $ | 11.02 | $ | 507,492 | $ | 13.58 | |||||||||||||||
Common shares outstanding | 37,450,438 | 37,373,066 | |||||||||||||||||||||
Common shares from assumed conversion of Series A Preferred Shares | 5,640,158 | — | |||||||||||||||||||||
Common shares outstanding after assumed conversion of Series A Preferred Shares | 43,090,596 | 37,373,066 |
Exhibit Number | Description | |||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32 | ||||||||
101.INS | Inline XBRL Instance Document | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document in Exhibit 101. |
James River Group Holdings, Ltd. | |||||||||||
Date: | November 2, 2022 | By: | /s/ Frank N. D’Orazio | ||||||||
Frank N. D’Orazio | |||||||||||
Chief Executive Officer and Director | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: | November 2, 2022 | By: | /s/ Sarah C. Doran | ||||||||
Sarah C. Doran | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
JAMES RIVER GROUP HOLDINGS, LTD. | ||||||||||||||
By: _________________________________ | ||||||||||||||
Title: _______________________________ | ||||||||||||||
GRANTEE: | ||||||||||||||
_______________________________________ | ||||||||||||||
Name: ______________________________ |
Name of Grantee: | [●] | |||||||||||||
Grant Date: | [●] | |||||||||||||
Number of Restricted Share Units Subject to Agreement: | [●] |
Continuous Service Date | Percentage of Restricted Share Units which are Vested Share Units | |||||||||||||
Prior to the first anniversary of the Grant Date | 0% | |||||||||||||
First anniversary of the Grant Date, but prior to the second anniversary | 331/3% | |||||||||||||
Second anniversary of the Grant Date, but prior to the third anniversary | 662/3% | |||||||||||||
Third anniversary of the Grant Date | 100% |
/s/ Frank N. D’Orazio | |||||
Frank N. D’Orazio | |||||
Chief Executive Officer | |||||
(Principal Executive Officer) |
/s/ Sarah C. Doran | |||||
Sarah C. Doran | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |
/s/ Frank N. D’Orazio | |||||
Frank N. D’Orazio | |||||
Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
November 2, 2022 | |||||
/s/ Sarah C. Doran | |||||
Sarah C. Doran | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) | |||||
November 2, 2022 |
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Fixed maturity securities, available-for-sale, at amortized cost | $ 1,839,336 | |
Equity securities, at cost | $ 121,446 | $ 95,783 |
Series A convertible preferred shares (in dollars per share) | $ 0.00125 | $ 0.00125 |
Series A convertible preferred shares, authorized (in shares) | 20,000,000 | 20,000,000 |
Series A convertible preferred shares, issued (in shares) | 150,000 | 0 |
Series A convertible preferred shares, outstanding (in shares) | 150,000 | 0 |
Common stock, par value (in dollars per share) | $ 0.0002 | $ 0.0002 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 37,450,438 | 37,373,066 |
Common stock, shares outstanding (in shares) | 37,450,438 | 37,373,066 |
Fixed maturity securities | ||
Fixed maturity securities, available-for-sale, at amortized cost | $ 1,839,336 | $ 1,643,865 |
Condensed Consolidated Statements of (Loss) Income and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Revenues | ||||
Gross written premiums | $ 358,505 | $ 346,599 | $ 1,118,155 | $ 1,100,000 |
Ceded written premiums | (168,254) | (188,389) | (557,354) | (573,587) |
Net written premiums | 190,251 | 158,210 | 560,801 | 526,413 |
Change in net unearned premiums | (62) | 12,398 | 5,474 | (22,507) |
Net earned premiums | 190,189 | 170,608 | 566,275 | 503,906 |
Net investment income | 17,306 | 15,289 | 48,278 | 44,726 |
Net realized and unrealized (losses) gains on investments | (7,754) | 3,983 | (29,874) | 13,738 |
Other income | 1,488 | 1,113 | 3,304 | 3,170 |
Total revenues | 201,229 | 190,993 | 587,983 | 565,540 |
Expenses | ||||
Losses and loss adjustment expenses | 153,008 | 166,078 | 409,985 | 549,578 |
Other operating expenses | 47,584 | 43,193 | 146,681 | 136,414 |
Other expenses | 210 | 706 | 578 | 2,231 |
Interest expense | 4,950 | 2,227 | 11,291 | 6,692 |
Amortization of intangible assets | 90 | 90 | 272 | 272 |
Total expenses | 205,842 | 212,294 | 568,807 | 695,187 |
(Loss) income before taxes | (4,613) | (21,301) | 19,176 | (129,647) |
Income tax expense (benefit) | 8 | 2,588 | 5,928 | (23,141) |
Net (loss) income | (4,621) | (23,889) | 13,248 | (106,506) |
Dividends on Series A preferred shares | (2,625) | 0 | (6,125) | 0 |
Net (loss) income available to common shareholders | (7,246) | (23,889) | 7,123 | (106,506) |
Other comprehensive loss: | ||||
Net unrealized losses, net of taxes of $(8,910) and $(28,558) in 2022 and $(1,882) and $(5,517) in 2021 | (60,656) | (11,459) | (205,227) | (38,789) |
Total comprehensive loss | $ (65,277) | $ (35,348) | $ (191,979) | $ (145,295) |
Net (loss) income per common share: | ||||
Basic (in dollars per share) | $ (0.19) | $ (0.64) | $ 0.19 | $ (3.12) |
Diluted (in dollars per share) | (0.19) | (0.64) | 0.19 | (3.12) |
Dividend declared per common share (in dollars per share) | $ 0.05 | $ 0.30 | $ 0.15 | $ 0.90 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 37,450,381 | 37,278,469 | 37,435,798 | 34,161,022 |
Diluted (in shares) | 37,450,381 | 37,278,469 | 37,642,656 | 34,161,022 |
Condensed Consolidated Statements of (Loss) Income and Comprehensive Loss (Unaudited) (Parentheticals) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Income Statement [Abstract] | ||||
Tax on net unrealized gains (losses) | $ (8,910) | $ (1,882) | $ (28,558) | $ (5,517) |
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|||
Operating activities | ||||
Net cash provided by (used in) operating activities | [1] | $ 168,129 | $ (1,061,314) | |
Securities available-for-sale: | ||||
Purchases – fixed maturity securities | (546,239) | (326,483) | ||
Sales – fixed maturity securities | 206,790 | 118,260 | ||
Maturities and calls – fixed maturity securities | 143,015 | 226,280 | ||
Purchases – equity securities | (36,850) | (14,339) | ||
Sales – equity securities | 11,251 | 6,757 | ||
Bank loan participations: | ||||
Purchases | (78,371) | (88,376) | ||
Sales | 43,257 | 48,854 | ||
Maturities | 17,340 | 39,058 | ||
Other invested assets: | ||||
Purchases | 0 | (11,644) | ||
Return of capital | 1,768 | 610 | ||
Short-term investments, net | (72,341) | 103,347 | ||
Securities receivable or payable, net | 52,763 | 12,365 | ||
Purchases of property and equipment | (4,564) | (2,930) | ||
Net cash (used in) provided by investing activities | (262,181) | 111,759 | ||
Financing activities | ||||
Senior debt repayments | (40,000) | 0 | ||
Issuance of Series A preferred shares | 144,898 | 0 | ||
Issuance of common shares - public offering | 0 | 192,107 | ||
Issuance of common shares under equity incentive plans | 0 | 571 | ||
Common share repurchases | (941) | (2,762) | ||
Dividends on Series A preferred shares | (6,125) | 0 | ||
Dividends on common shares | (5,879) | (31,990) | ||
Net cash provided by financing activities | 91,953 | 157,926 | ||
Change in cash, cash equivalents, and restricted cash equivalents | (2,099) | (791,629) | ||
Cash, cash equivalents, and restricted cash equivalents at beginning of period | 292,128 | 1,022,180 | ||
Cash, cash equivalents, and restricted cash equivalents at end of period | 290,029 | 230,551 | ||
Supplemental information | ||||
Interest paid | 10,746 | 7,473 | ||
Restricted cash equivalents at beginning of period | 102,005 | 859,920 | ||
Restricted cash equivalents at end of period | 102,485 | 10,000 | ||
Change in restricted cash equivalents | $ 480 | $ (849,920) | ||
|
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Cash provided by (used in) operating activities excluding reduction in collateral funds | $ 167.6 | $ (211.4) |
Loss Portfolio Transfer | Excess and Surplus Lines | ||
Cash paid to effect a loss portfolio transfer reinsurance transaction | $ 317.6 |
Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Organization James River Group Holdings, Ltd. (referred to as “JRG Holdings” or, with its subsidiaries, the “Company”) is an exempted holding company registered in Bermuda, organized for the purpose of acquiring and managing insurance and reinsurance entities. The Company owns five insurance companies based in the United States (“U.S.”) focused on specialty insurance niches and two Bermuda-based reinsurance companies as described below: •James River Group Holdings UK Limited (“James River UK”) is an insurance holding company formed in 2015 in the United Kingdom (“U.K.”). JRG Holdings contributed James River Group, Inc. (“James River Group”), a U.S. insurance holding company, to James River UK in 2015. •James River Group is a Delaware domiciled insurance holding company formed in 2002 which owns all of the Company’s U.S.-based subsidiaries, either directly or indirectly through one of its wholly-owned U.S. subsidiaries. James River Group oversees the Company’s U.S. insurance operations and maintains all of the outstanding debt in the U.S. •James River Insurance Company is an Ohio domiciled excess and surplus lines insurance company that, with its wholly-owned insurance subsidiary, James River Casualty Company, a Virginia domiciled company, is authorized to write business in every state and the District of Columbia. •Falls Lake National Insurance Company (“Falls Lake National”) is an Ohio domiciled insurance company which wholly owns Stonewood Insurance Company (“Stonewood Insurance”), a North Carolina domiciled company, and Falls Lake Fire and Casualty Company, a California domiciled company. Falls Lake National and its subsidiaries primarily write specialty admitted fronting and program business and individual risk workers' compensation insurance. •JRG Reinsurance Company Ltd. (“JRG Re”) was formed in 2007 and commenced operations in 2008. JRG Re, a Bermuda domiciled reinsurer, primarily provides non-catastrophe casualty reinsurance to U.S. third parties and, through December 31, 2017, to the Company’s U.S.-based insurance subsidiaries. •Carolina Re Ltd (“Carolina Re”) was formed in 2018 and from January 1, 2018 through December 31, 2021 provided reinsurance to the Company’s U.S.-based insurance subsidiaries. During the three months ended September 30, 2022, Carolina Re commuted the majority of the outstanding obligations ceded under the intercompany quota share reinsurance agreements back to the Company’s U.S.-based insurance subsidiaries with effect from January 1, 2022. Carolina Re was also the cedent on an aggregate stop loss reinsurance treaty with JRG Re through December 31, 2021. Basis of Presentation The accompanying condensed consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include the results of the Company and its subsidiaries from their respective dates of inception or acquisition, as applicable. Readers are urged to review the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 for a more complete description of the Company’s business and accounting policies. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results of operations for the full year. The consolidated balance sheet as of December 31, 2021 was derived from the Company’s audited annual consolidated financial statements. Intercompany transactions and balances have been eliminated. Estimates and Assumptions Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates. Variable Interest Entities Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (“VIE”). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose, and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. The Company holds interests in VIEs through certain equity method investments included in “other invested assets” in the accompanying condensed consolidated balance sheets. The Company has determined that it should not consolidate any of the VIEs as it is not the primary beneficiary in any of the relationships. Although the investments resulted in the Company holding variable interests in the entities, they did not empower the Company to direct the activities that most significantly impact the economic performance of the entities. The Company’s investments related to these VIEs totaled $28.2 million and $26.9 million at September 30, 2022 and December 31, 2021, respectively, representing the Company’s maximum exposure to loss. Income Tax Expense Our effective tax rate fluctuates from period to period based on the relative mix of income reported by country and the respective tax rates imposed by each tax jurisdiction. For U.S.-sourced income, the Company’s U.S. federal income tax expense differs from the amounts computed by applying the federal statutory income tax rate to income before taxes due primarily to interest income on tax-advantaged state and municipal securities, dividends received income, and excess tax benefits on share based compensation. For the nine months ended September 30, 2022, our U.S. federal income tax expense was 30.9% of the income before taxes. The effective rate exceeded the 21.0% U.S. statutory rate due to a projected annual loss in Bermuda that does not provide a tax benefit and certain discreet items including excess tax expenses associated with vested restricted share units (“RSUs”) in the nine months ended September 30, 2022. The Company had a pre-tax loss of $129.6 million for the nine months ended September 30, 2021 and recorded a U.S. federal income tax benefit of $23.1 million. For the nine months ended September 30, 2021, our U.S. federal income tax benefit was 17.8% of the loss before taxes. The pre-tax loss was largely driven by the $210.8 million of net adverse reserve development on prior accident years, including $190.7 million of net adverse development from the Excess and Surplus Lines segment that was primarily related to a former commercial auto account. Adopted Accounting Standards In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 simplifies the accounting for convertible debt instruments and convertible preferred stock and became effective for interim and annual periods beginning after December 15, 2021. The Company adopted the new standard concurrent with the issuance of our Series A preferred shares on March 1, 2022. Under ASU 2020-06, embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. The new guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and generally requires them to include the effect of potential share settlement for instruments that may be settled in cash or shares. Adoption of the new standard did not materially impact our financial position, results of operations, or earnings per share for the nine months ended September 30, 2022.
|
Investments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments The Company’s available-for-sale fixed maturity securities are summarized as follows:
The amortized cost and fair value of available-for-sale investments in fixed maturity securities at September 30, 2022 are summarized, by contractual maturity, as follows:
Actual maturities may differ for some securities because borrowers have the right to call or prepay obligations with or without penalties. The following table shows the Company’s gross unrealized losses and fair value for available-for-sale securities aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:
At September 30, 2022, the Company held fixed maturity securities of 573 issuers that were in an unrealized loss position with a total fair value of $1,613.5 million and gross unrealized losses of $200.7 million. None of the fixed maturity securities with unrealized losses has ever missed, or been delinquent on, a scheduled principal or interest payment. At September 30, 2022, 99.8% of the Company’s fixed maturity security portfolio was rated “BBB-” or better (“investment grade”) by Standard & Poor’s or received an equivalent rating from another nationally recognized rating agency. Fixed maturity securities with ratings below investment grade by Standard & Poor’s or another nationally recognized rating agency at September 30, 2022 had an aggregate fair value of $2.6 million and an aggregate net unrealized loss of $250,000. The Company reviews its available-for-sale fixed maturities to determine whether unrealized losses are due to credit-related factors. An allowance for credit losses is established for any credit-related impairments, limited to the amount by which fair value is below amortized cost. Changes in the allowance for credit losses are recognized in earnings and included in net realized and unrealized gains (losses) on investments. Unrealized losses that are not credit-related are recognized in other comprehensive income. The Company considers the extent to which fair value is below amortized cost in determining whether a credit-related loss exists. The Company also considers the credit quality rating of the security, with a special emphasis on securities downgraded below investment grade. A comparison is made between the present value of expected future cash flows for a security and its amortized cost. If the present value of future expected cash flows is less than amortized cost, a credit loss is presumed to exist and an allowance for credit losses is established. Management may conclude that a qualitative analysis is sufficient to support its conclusion that the present value of the expected cash flows equals or exceeds a security’s amortized cost. As a result of this review, management concluded that there were no credit-related impairments of fixed maturity securities at September 30, 2022, December 31, 2021, or September 30, 2021. Management does not intend to sell the securities in an unrealized loss position, and it is not “more likely than not” that the Company will be required to sell these securities before a recovery in their value to their amortized cost basis occurs. Bank loan participations are measured at fair value pursuant to the Company's election of the fair value option, and changes in unrealized gains and losses in bank loan participations are reported in our income statement as net realized and unrealized gains (losses) on investments. Applying the fair value option to the bank loan portfolio increases volatility in the Company's financial statements, but management believes it is less subjective and less burdensome to implement and maintain than the requirements of ASU 2016-13. At September 30, 2022, the Company's bank loan portfolio had an aggregate fair value of $160.3 million and unpaid principal of $178.8 million. Investment income on bank loan participations included in net investment income was $3.4 million and $8.4 million for the three and nine months ended September 30, 2022, respectively ($2.8 million and $8.2 million for the three and nine months ended September 30, 2021, respectively). Net realized and unrealized gains (losses) on investments includes losses on bank loan participations of $2.2 million and $14.2 million for the three and nine months ended September 30, 2022, respectively (gains of $195,000 and $6.0 million for the three and nine months ended September 30, 2021, respectively). For the three and nine months ended September 30, 2022 and 2021, management concluded that none of the unrealized losses were due to credit-related impairments. Losses due to credit-related impairments are determined based upon consultations and advice from the Company's specialized investment manager and consideration of any adverse situations that could affect the borrower's ability to repay, the estimated value of underlying collateral, and other relevant factors. Bank loan participations generally provide a higher yield than our portfolio of fixed maturities and have a credit rating that is below investment grade (i.e. below “BBB-” for Standard & Poor’s) at the date of purchase. These bank loans are primarily senior, secured floating-rate debt rated “BB”, “B”, or “CCC” by Standard & Poor’s or an equivalent rating from another nationally recognized rating agency. These bank loans include assignments of, and participations in, performing and non-performing senior corporate debt generally acquired through primary bank syndications and in secondary markets. Bank loans consist of, but are not limited to, term loans, the funded and unfunded portions of revolving credit loans, and other similar loans and investments. Management believed that it was probable at the time that these loans were acquired that the Company would be able to collect all contractually required payments receivable. Interest income on bank loan participations is accrued on the unpaid principal balance, and discounts and premiums on bank loan participations are amortized to income using the interest method. Generally, the accrual of interest on a bank loan participation is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest. A bank loan participation may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Generally, bank loan participations are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Interest received on nonaccrual loans generally is reported as investment income. There were no bank loans on nonaccrual status at September 30, 2022 or December 31, 2021. The Company’s net realized and unrealized gains and losses on investments are summarized as follows:
Realized investment gains or losses are determined on a specific identification basis. The Company invests selectively in private debt and equity opportunities. These investments, which together comprise the Company’s other invested assets, are primarily focused in renewable energy, limited partnerships, and bank holding companies.
(a)The Company's Excess and Surplus Lines and Corporate and Other segments own equity interests ranging from 2.6% to 32.6% in various LLCs whose principal objective is capital appreciation and income generation from owning and operating renewable energy production facilities (wind and solar). The LLCs are managed by an entity for which two former directors served as officers, and the Company’s Non-Executive Chairman has invested in certain of these LLCs. The equity method is used to account for the Company’s LLC investments. Income for the LLCs primarily reflects adjustments to the carrying values of investments in renewable energy projects to their determined fair values. The fair value adjustments are included in revenues for the LLCs. Expenses for the LLCs are not significant and are comprised of administrative and interest expenses. The Company received cash distributions from these investments totaling $1.4 million and $1.8 million in the nine months ended September 30, 2022 and 2021, respectively. (b)The Company's Excess and Surplus Lines and Corporate and Other segments have invested in notes receivable for renewable energy projects. At September 30, 2022, the Company held two notes issued by an entity for which two of our former directors serve as officers. Interest on the notes, which mature in 2025, is fixed at 12%. (c)The Company owns investments in limited partnerships that invest in concentrated portfolios including publicly-traded small cap equities, loans of middle market private equity sponsored companies, private equity general partnership interests, commercial mortgage-backed securities, and tranches of distressed home loans. Income from the partnerships is recognized under the equity method of accounting. During the three and nine months ended September 30, 2022, the Company recognized an impairment loss of $392,000 on one limited partnership in the Corporate & Other segment. At September 30, 2022, the Company’s Excess and Surplus Lines segment has outstanding commitments to invest another $5.3 million in the other limited partnerships. (d)The Company's Excess and Surplus Lines segment holds $4.5 million of subordinated notes issued by a bank holding company for which the Company’s Non-Executive Chairman was previously the Lead Independent Director and an investor and for which one of the Company’s directors is also an investor (the "Bank Holding Company"). Interest on the notes, which mature on August 12, 2023, is fixed at 7.6% per annum.
|
Goodwill and Intangible Assets |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets On December 11, 2007, the Company completed an acquisition of James River Group by acquiring 100% of the outstanding shares of James River Group common stock, referred to herein as the “Merger”. The transaction was accounted for under the purchase method of accounting, and goodwill and intangible assets were recognized by the Company as a result of the transaction. Goodwill resulting from the Merger was $181.8 million at September 30, 2022 and December 31, 2021. The gross carrying amounts and accumulated amortization for each major specifically identifiable intangible asset class were as follows:
|
Earnings (Loss) Per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | Earnings (Loss) Per Share The following represents a reconciliation of the numerator and denominator of the basic and diluted earnings (loss) per common share computations contained in the condensed consolidated financial statements:
For the three and nine months ended September 30, 2022, potential common shares of 5,830,234 and 4,421,223, respectively (133,994 and 203,077 in the respective prior year periods), were excluded from the calculation of diluted earnings (loss) per common share as their effects were anti-dilutive.
|
Reserve for Losses and Loss Adjustment Expenses |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Claims and Claims Adjustment Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for Losses and Loss Adjustment Expenses | Reserve for Losses and Loss Adjustment Expenses The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses, net of reinsurance, to the gross amounts reported in the condensed consolidated balance sheets. Reinsurance recoverables on unpaid losses and loss adjustment expenses are presented gross of an allowance for credit losses on reinsurance balances of $621,000 at September 30, 2022, $601,000 at June 30, 2022, $604,000 at March 31, 2022, $631,000 at December 31, 2021, $515,000 at September 30, 2021, and $335,000 at June 30, 2021, March 31, 2021, and December 31, 2020.
The Company experienced $1.1 million of net favorable reserve development in the three months ended September 30, 2022 on the reserve for losses and loss adjustment expenses held at December 31, 2021 (excluding adverse prior year development on the legacy commercial auto business subject to retroactive reinsurance accounting - see Commercial Auto Loss Portfolio Transfer below). This reserve development included $139,000 of net adverse development in the Excess and Surplus Lines segment, $1.3 million of net favorable development in the Specialty Admitted Insurance segment, and no development in the Casualty Reinsurance segment. The Company also experienced $5.0 million of net catastrophe losses in the current accident year for the three months ended September 30, 2022 related to Hurricane Ian. The losses were primarily in the Excess Property book in the Excess and Surplus Lines segment. The Company experienced $44.1 million of net adverse reserve development in the three months ended September 30, 2021 on the reserve for losses and loss adjustment expenses held at December 31, 2020. This reserve development included $29.5 million of net adverse development in the Excess and Surplus Lines segment (see Commercial Auto Loss Portfolio Transfer below), $500,000 of net favorable development in the Specialty Admitted Insurance segment, and $15.1 million of net adverse development in the Casualty Reinsurance segment. The Company also experienced $5.0 million of net catastrophe losses in the current accident year for the three months ended September 30, 2021 related to Hurricane Ida. The losses were primarily in the Excess Property book in the Excess and Surplus Lines segment. The Company experienced $4.1 million of net adverse reserve development in the nine months ended September 30, 2022 on the reserve for losses and loss adjustment expenses held at December 31, 2021 (excluding adverse prior year development on the legacy commercial auto business subject to retroactive reinsurance accounting - see Commercial Auto Loss Portfolio Transfer below). This reserve development included $48,000 of net adverse development in the Excess and Surplus Lines segment, $2.8 million of net favorable development in the Specialty Admitted Insurance segment, and $6.8 million of net adverse development in the Casualty Reinsurance segment that was associated with the Retrocession Agreement (as defined below). The Company also experienced $5.0 million of net catastrophe losses in the current accident year for the nine months ended September 30, 2022 related to Hurricane Ian. The losses were primarily in the Excess Property book in the Excess and Surplus Lines segment. The Company experienced $210.8 million of net adverse reserve development in the nine months ended September 30, 2021 on the reserve for losses and loss adjustment expenses held at December 31, 2020. This reserve development included $190.7 million of net adverse development in the Excess and Surplus Lines segment including $200.1 million on commercial auto business almost entirely related to a previously canceled account that has been in runoff since 2019. The reported losses on this terminated commercial auto account meaningfully exceeded our expectations for the three months ended March 31, 2021. We had expected that reported losses would decline as the account moved further into runoff, but the continued heavy reported loss emergence in the first quarter of 2021 indicated more inherent severity than anticipated. The continuation of the highly elevated reported losses in the first quarter of 2021 led us to conclude that using only our own loss experience in our paid and incurred reserve projections rather than industry data inputs that we had used in prior quarters, and giving greater weight to incurred methods, would give us a better estimate of ultimate losses on this account. In response, we meaningfully adjusted our actuarial methodology, resulting in a significant strengthening of reserves for this account at March 31, 2021. Loss emergence on the terminated commercial auto account in the second quarter was in line with our expectations, and accordingly, no additional reserve development was taken. In the third quarter, an additional $29.6 million was recognized as adverse loss and loss adjustment reserve development upon entering the loss portfolio transaction as described below. The Company experienced $2.5 million of net favorable development in the Specialty Admitted Insurance segment due to favorable development in the workers' compensation business for prior accident years, and $22.6 million of net adverse development in the Casualty Reinsurance segment. The Company also experienced $5.0 million of net catastrophe losses in the current accident year for the nine months ended September 30, 2021 related to Hurricane Ida. The losses were primarily in the Excess Property book in the Excess and Surplus Lines segment. Loss Portfolio Transfers Loss portfolio transfers are a form of reinsurance utilized by the Company to transfer losses and loss adjustment expenses and associated risk of adverse development on covered subject business, as defined in the respective agreements, to an assuming reinsurer in exchange for a reinsurance premium. Loss portfolio transfers can bring economic finality on the subject risks when they no longer meet the Company's appetite or are no longer aligned with our risk management guidelines. The Company periodically reevaluates the remaining reserves subject to its loss portfolio transfers, and when recognized adverse prior year development on the subject business causes the cumulative amounts ceded under a loss portfolio transfer to exceed the consideration paid, the loss portfolio transfer moves into a gain position subject to retroactive reinsurance accounting under GAAP. Gains are deferred under retroactive reinsurance accounting and recognized in earnings in proportion to actual paid recoveries under the loss portfolio transfer using the recovery method. While the deferral of gains can introduce volatility in our results in the short-term, over the life of the contract, we would expect no economic impact to the Company as long as any additional losses are within the limit of the loss portfolio transfer and the counterparty performs under the contract. The impact of retroactive reinsurance accounting is not indicative of our current and ongoing operations. Loss Portfolio Transfer Retrocession Agreement On February 23, 2022, JRG Re entered into a loss portfolio transfer retrocession agreement (the “Retrocession Agreement”) with Fortitude Reinsurance Company Ltd. (“FRL”) under which FRL reinsures the majority of the reserves in the Company’s Casualty Reinsurance segment. Under the terms of the transaction, which closed on March 31, 2022 (the “Retrocession Closing Date”), JRG Re (a) ceded to FRL all existing and future claims for losses arising under certain casualty reinsurance agreements with underlying insurance companies with treaty inception dates ranging from 2011 to 2020 (the “Subject Business”), in each case net of third-party reinsurance and other recoveries, up to an aggregate limit of $400.0 million; (b) continues to manage and retain the benefit of other third-party reinsurance on the Subject Business; (c) paid FRL a reinsurance premium of $335.0 million, $310.0 million of which JRG Re credited to a notional funds withheld account (the “Funds Withheld Account”) and $25.0 million of which was paid in cash to FRL; and (d) pays FRL a 2% per annum crediting rate on the Funds Withheld Account balance on a quarterly basis. The total premium, initial Funds Withheld Account credit, and aggregate limit was adjusted for claims paid from October 1, 2021 to the Retrocession Closing Date. The Casualty Reinsurance segment incurred losses of $11.5 million (including $6.8 million of net adverse reserve development and $4.7 million of current accident year losses) in the three months ended March 31, 2022 associated with the Retrocession Agreement. Commercial Auto Loss Portfolio Transfer On September 27, 2021, James River Insurance Company and James River Casualty Company (together, “James River”) entered into a loss portfolio transfer transaction (the “Commercial Auto LPT”) with Aleka Insurance, Inc. (“Aleka”), a captive insurance company affiliate of Rasier LLC, to reinsure substantially all of the Excess and Surplus Lines segment's legacy portfolio of commercial auto policies previously issued to Rasier LLC and its affiliates (collectively, “Rasier”) for which James River is not otherwise indemnified by Rasier. Under the terms of the transaction, effective as of July 1, 2021, James River ceded to Aleka approximately $345.1 million of commercial auto liabilities relating to Rasier policies written in the years 2013-2019, which amount constituted the reinsurance premium. The reinsurance coverage is structured to be fully collateralized, is not subject to an aggregate limit, and is subject to certain exclusions. A pre-tax loss of $29.6 million was recognized as adverse loss and loss adjustment reserve development in the Excess and Surplus Lines segment for the third quarter of 2021 associated with the loss portfolio transfer. For the three and nine months ended September 30, 2022, due to adverse paid loss trends on the legacy Rasier business, the Company recognized adverse prior year development of $46.7 million on the reserves subject to the Commercial Auto LPT, resulting in a corresponding additional amount ceded under the Commercial Auto LPT. As a result, the cumulative amounts ceded under the Commercial Auto LPT exceed the consideration paid, moving the Commercial Auto LPT into a gain position. The Company has applied retroactive reinsurance accounting to the Commercial Auto LPT. A retroactive reinsurance benefit of $25.9 million was recorded in losses and loss adjustment expenses on the Condensed Consolidated Statements of (Loss) Income and Comprehensive Loss for the three and nine months ended September 30, 2022 using the recovery method. As of September 30, 2022 and December 31, 2021, the cumulative amounts ceded under the Commercial Auto LPT were $391.8 million and $345.1 million, respectively. The unrecognized deferred retroactive reinsurance gain of $20.8 million at September 30, 2022 is separately presented on the Company's Condensed Consolidated Balance Sheets.
|
Other Comprehensive Loss |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Loss | Other Comprehensive Loss The following table summarizes the components of other comprehensive loss:
The Company's invested assets at September 30, 2022 include $1,639.2 million of fixed maturity securities that are classified as available-for-sale and carried at fair value with unrealized gains and losses on these securities reported, net of applicable taxes, as a separate component of accumulated comprehensive (loss) income. In the nine months ended September 30, 2022 and 2021, the fair values of our fixed maturity securities were negatively impacted by rising interest rates leading to unrealized losses recognized in other comprehensive loss. In addition to the $972,000 of net realized investment losses and $284,000 of net realized investment gains on available-for-sale fixed maturities for the three and nine months ended September 30, 2022 ($3.2 million and $4.3 million of net realized investment gains for the three and nine months ended September 30, 2021, respectively), the Company also recognized net realized and unrealized investment losses in the respective periods of $2.2 million and $14.2 million on its investments in bank loan participations ($195,000 and $6.0 million of net realized and unrealized investment gains in the respective prior year periods) and net realized and unrealized investment losses of $4.6 million and $15.9 million on its investments in equity securities ($641,000 and $3.4 million of net realized and unrealized investment gains in the respective prior year periods) that was largely related to preferred stock holdings.
|
Contingent Liabilities |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | Contingent Liabilities The Company is involved in various legal proceedings, including commercial matters and litigation regarding insurance claims arising in the ordinary course of business as well as an alleged class action lawsuit. In addition, the Company is involved from time to time in legal actions which seek extra-contractual damages, punitive damages or penalties, including claims alleging bad faith in the handling of insurance claims. The Company believes that the outcome of such matters, individually and in the aggregate, is not reasonably likely to have a material adverse effect on its consolidated financial position, results of operations or cash flows. On July 9, 2021 a purported class action lawsuit was filed in the U.S. District Court, Eastern District of Virginia (the “Court”) by Employees’ Retirement Fund of the City of Fort Worth against James River Group Holdings, Ltd. and certain of its present and former officers (together, “Defendants”). On September 22, 2021, the Court entered an order appointing Employees’ Retirement Fund of the City of Fort Worth and the City of Miami General Employees’ and Sanitation Employees’ Retirement Trust as co-lead plaintiffs (together, “Plaintiffs”). Plaintiffs’ consolidated amended complaint was filed on November 19, 2021 (the “First Amended Complaint”). The Defendants filed a motion to dismiss the First Amended Complaint on January 18, 2022, Plaintiffs’ opposition thereto was filed on March 4, 2022, and the Defendants’ reply to the Plaintiffs’ opposition was filed on April 4, 2022. On August 25, 2022, Plaintiffs filed a motion for leave to file a second amended class action complaint (the "Second Amended Complaint"). On September 8, 2022, the Defendants consented to the Plaintiffs’ motion to file the Second Amended Complaint, and filed a motion to dismiss the Second Amended Complaint on October 24, 2022 (the "Second MTD"). The Plaintiffs’ opposition to the Second MTD is due December 8, 2022, and the Defendant's reply to the Plaintiffs’ opposition is due January 9, 2023. The First Amended Complaint and Second Amended Complaint assert claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of a putative class of persons and entities that purchased the Company's stock between February 22, 2019 and October 25, 2021, and allege that Defendants failed to make appropriate disclosures concerning the adequacy of reserves for policies that covered Rasier LLC, a subsidiary of Uber Technologies, Inc., and seek unspecified damages, costs, attorneys’ fees and such other relief as the court may deem proper. We believe that the Plaintiffs’ claims are without merit and we intend to vigorously defend this lawsuit. For a description of the potential future impacts of COVID-19 on the Company, see the “The global coronavirus outbreak could harm business and results of operations of the Company” risk factor in Part I—Item IA in our Annual Report on Form 10-K for the year ended December 31, 2021. The Company’s reinsurance subsidiary, JRG Re, entered into three letter of credit facilities with banks as security to third-party reinsureds on reinsurance assumed by JRG Re. JRG Re has established custodial accounts to secure these letters of credit. Under a $30.0 million facility, $4.6 million of letters of credit were issued through September 30, 2022 which were secured by deposits of $7.8 million. Under a $102.5 million facility, $40.5 million of letters of credit were issued through September 30, 2022 which were secured by deposits of $46.0 million. Under a $100.0 million facility, $22.6 million of letters of credit were issued through September 30, 2022 which were secured by deposits of $27.5 million. JRG Re has also established trust accounts to secure its obligations to selected reinsureds. The total amount deposited in the trust accounts for the benefit of third-party reinsureds was $409.3 million at September 30, 2022. Amounts Recoverable from an Indemnifying Party and Reinsurer on Legacy Commercial Auto Book James River previously issued a set of commercial auto insurance contracts (the “Rasier Commercial Auto Policies”) to Rasier under which James River pays losses and loss adjustment expenses on the contracts. James River has indemnity agreements with Rasier (non-insurance entities) (collectively, the “Indemnity Agreements”) and is contractually entitled to reimbursement for the portion of the losses and loss adjustment expenses paid on behalf of Rasier under the Rasier Commercial Auto Policies and other expenses incurred by James River. On September 27, 2021, James River entered into the Commercial Auto LPT with Aleka to reinsure substantially all of the Rasier Commercial Auto Policies for which James River is not otherwise indemnified by Rasier under the Indemnity Agreements. Under the terms of the Commercial Auto LPT, effective as of July 1, 2021, James River ceded to Aleka approximately $345.1 million of commercial auto liabilities relating to Rasier Commercial Auto Policies written in the years 2013-2019, which amount constituted the reinsurance premium. Each of Rasier and Aleka are required to post collateral under the Indemnity Agreements and the Commercial Auto LPT, respectively: •Pursuant to the Indemnity Agreements, Rasier is required to post collateral equal to 102% of James River's estimate of the amounts that are recoverable or may be recoverable under the indemnity agreements, including, among other things, case loss and loss adjustment expense reserves, IBNR loss and loss adjustment expense reserves, extra contractual obligations and excess policy limits liabilities. The collateral is provided through a collateral trust arrangement (the “Indemnity Trust”) in favor of James River by Aleka. In connection with the execution of the Commercial Auto LPT, James River returned $691.3 million to the Indemnity Trust, representing the remaining balance of the amount withdrawn in October 2019, as was permitted under the indemnification agreements with Rasier and the associated trust agreement. At September 30, 2022, the balance in the Indemnity Trust was $262.1 million, and, together with the balance of the Loss Fund Trust (as defined below) attributable to the Indemnity Agreements as described below, the total balance of collateral securing Rasier’s obligations under the Indemnity Agreements was $331.3 million. •Pursuant to the Commercial Auto LPT, Aleka is required to post collateral equal to 102% of James River's estimate of Aleka's obligations under the Commercial Auto LPT, calculated in accordance with statutory accounting principles. The collateral is provided through a collateral trust arrangement (the “LPT Trust”) established in favor of James River by Aleka. At September 30, 2022, the balance in the LPT Trust was $118.3 million, and, together with the balance of the Loss Fund Trust (as defined below) attributable to the Commercial Auto LPT as described below, the total balance of collateral securing Aleka’s obligations under the Commercial Auto LPT was $146.5 million. At September 30, 2022, the total reinsurance recoverables under the Commercial Auto LPT was $189.1 million (including $174.3 million of unpaid recoverables and $14.8 million of paid recoverables). In connection with the execution of the Commercial Auto LPT, James River and Aleka entered into an administrative services agreement (the “Administrative Services Agreement”) with a third party claims administrator (the “Administrator”) pursuant to which the Administrator handles the claims on the Rasier Commercial Auto Policies for the remaining life of those claims. The claims paid by the Administrator are reimbursable by James River, and pursuant to the Administrative Services Agreement, James River established a loss fund trust account for the benefit of the Administrator (the “Loss Fund Trust”) to collateralize its claims payment reimbursement obligations. James River funds the Loss Fund Trust using funds withdrawn from the Indemnity Trust, funds withdrawn from the LPT Trust, and its own funds, in each case in an amount equal to the pro rata portion of the required Loss Fund Trust balance attributable to the Indemnity Agreements, the Commercial Auto LPT and James River’s existing third party reinsurance agreements, respectively. At September 30, 2022, the balance in the Loss Fund Trust was $102.5 million, including $69.2 million representing collateral supporting Rasier’s obligations under the Indemnity Agreements and $28.2 million representing collateral supporting Aleka’s obligations under the Commercial Auto LPT. Funds posted to the Loss Fund Trust are classified as restricted cash equivalents on the Company's balance sheets. While the Commercial Auto LPT brings economic finality to substantially all of the Rasier Commercial Auto Policies, the Company has credit exposure to Rasier and Aleka under the Indemnity Agreements and the Commercial Auto LPT if the estimated losses and expenses of the Rasier Commercial Auto Policies grow at a faster pace than the growth in our collateral balances. In addition, we have credit exposure if our estimates of future losses and loss adjustment expenses and other amounts recoverable under the Indemnity Agreements and the Commercial Auto LPT, which are the basis for establishing the collateral balances, are lower than actual amounts paid or payable. The amount of our credit exposure in any of these instances could be material. To mitigate these risks, we closely and frequently monitor our exposure compared to our collateral held, and we request additional collateral in accordance with the terms of the Commercial Auto LPT and Indemnity Agreements when our analysis indicates that we have uncollateralized exposure.
|
Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment InformationThe Company has four reportable segments: the Excess and Surplus Lines segment, the Specialty Admitted Insurance segment, the Casualty Reinsurance segment, and the Corporate and Other segment. Segment profit (loss) is measured by underwriting profit (loss), which is generally defined as net earned premiums and gross fee income (in specific instances when the Company is not retaining insurance risk) in “other income” in the condensed consolidated statements of income (loss) and comprehensive (loss) income less loss and loss adjustment expenses on business not subject to retroactive reinsurance accounting for loss portfolio transfers (see Loss Portfolio Transfers in Note 5 - Reserve for Losses and Loss Adjustment Expenses) and other operating expenses of the operating segments. Gross fee income of $914,000 and $2.6 million for the Specialty Admitted Insurance segment was included in other income and in underwriting profit (loss) for the three and nine months ended September 30, 2022, respectively ($1.0 million and $2.9 million in the respective prior year periods). Segment results are reported prior to the effects of intercompany reinsurance agreements among the Company’s insurance subsidiaries. The following table summarizes the Company’s segment results:
The following table reconciles the underwriting profit (loss) of the operating segments by individual segment to consolidated (loss) income before income taxes:
|
Other Operating Expenses and Other Expenses |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Operating Expenses and Other Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Operating Expenses and Other Expenses | Other Operating Expenses and Other Expenses Other operating expenses consist of the following:
Other expenses of $210,000 and $578,000 for the three and nine months ended September 30, 2022, respectively ($706,000 and $2.2 million in the respective prior year periods), primarily consist of certain nonoperating expenses including legal fees related to a purported class action lawsuit, legal and other professional fees related to the Company's May 2021 common share offering and various strategic initiatives, and employee severance costs.
|
Fair Value Measurements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Three levels of inputs are used to measure fair value of financial instruments: (1) Level 1: quoted price (unadjusted) in active markets for identical assets, (2) Level 2: inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument, and (3) Level 3: inputs to the valuation methodology are unobservable for the asset or liability. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair values of fixed maturity securities, equity securities, and bank loan participations have been determined using fair value prices provided by the Company’s investment accounting services provider or investment managers, who utilize internationally recognized independent pricing services. The prices provided by the independent pricing services are generally based on observable market data in active markets (e.g. broker quotes and prices observed for comparable securities). Values for U.S. Treasury and publicly-traded equity securities are generally based on Level 1 inputs which use the market approach valuation technique. The values for all other fixed maturity securities (including state and municipal securities and obligations of U.S. government corporations and agencies) and bank loan participations generally incorporate significant Level 2 inputs, and in some cases, Level 3 inputs, using the market approach and income approach valuation techniques. There have been no changes in the Company’s use of valuation techniques since December 31, 2020. The Company reviews fair value prices provided by its outside investment accounting service provider or investment managers for reasonableness by comparing the fair values provided by the managers to those provided by its investment custodian. The Company also reviews and monitors changes in unrealized gains and losses. The Company has not historically adjusted security prices. The Company obtains an understanding of the methods, models and inputs used by the investment managers and independent pricing services, and controls are in place to validate that prices provided represent fair values. The Company’s control process includes, but is not limited to, initial and ongoing evaluation of the methodologies used, a review of specific securities and an assessment for proper classification within the fair value hierarchy, and obtaining and reviewing internal control reports for our investment manager that obtains fair values from independent pricing services. Assets measured at fair value on a recurring basis as of September 30, 2022 are summarized below:
Assets measured at fair value on a recurring basis as of December 31, 2021 are summarized below:
A reconciliation of the beginning and ending balances of available-for-sale fixed maturity securities, equity securities, and bank loan participations measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is shown below:
The Company had one equity security at December 31, 2021 for which the fair value was determined using significant unobservable inputs (Level 3). The fair value of $102,000 for the equity security was based on expected proceeds from its sale. During the nine months ended September 30, 2022, the Company sold the equity security. The Company held one bank loan participation and three equity securities at September 30, 2021 and one bank loan participation and two equity securities at December 31, 2020 for which the fair value was determined using significant unobservable inputs (Level 3). A market approach using prices in trades of comparable securities was utilized to determine a fair value for the securities of $372,000 at September 30, 2021 and $980,000 at December 31, 2020. Transfers out of Level 3 occur when the Company is able to obtain reliable prices from pricing vendors for securities for which the Company was previously unable to obtain reliable prices. Transfers in to Level 3 occur when the Company is unable to obtain reliable prices for securities from pricing vendors and instead must use broker price quotes to value the securities. There were no transfers between Level 1 and Level 2 during the nine months ended September 30, 2022 or 2021. The Company recognizes transfers between levels at the beginning of the reporting period. In the determination of the fair value for bank loan participations and certain high yield bonds, the Company’s investment manager endeavors to obtain data from multiple external pricing sources. External pricing sources may include brokers, dealers and price data vendors that provide a composite price based on prices from multiple dealers. Such external pricing sources typically provide valuations for normal institutional size trading units of such securities using methods based on market transactions for comparable securities, and various relationships between securities, as generally recognized by institutional dealers. For investments in which the investment manager determines that only one external pricing source is appropriate or if only one external price is available, the relevant investment is generally recorded at fair value based on such price. Investments for which external sources are not available or are determined by the investment manager not to be representative of fair value are recorded at fair value as determined by the Company, with input from its investment managers and valuation specialists as considered necessary. In determining the fair value of such investments, the Company considers one or more of the following factors: type of security held, convertibility or exchangeability of the security, redeemability of the security (including the timing of redemptions), application of industry accepted valuation models, recent trading activity, liquidity, estimates of liquidation value, purchase cost, and prices received for securities with similar terms of the same issuer or similar issuers. At September 30, 2022 and December 31, 2021, there were no investments for which external sources were unavailable to determine fair value. The carrying values and fair values of financial instruments are summarized below:
The fair values of fixed maturity securities, equity securities, and bank loan participations have been determined using quoted market prices for securities traded in the public market or prices using bid or closing prices for securities not traded in the public marketplace. The fair values of cash and cash equivalents and short-term investments approximate their carrying values due to their short-term maturity. The fair values of other invested assets-notes receivable, senior debt, and junior subordinated debt at September 30, 2022 and December 31, 2021 were determined by calculating the present value of expected future cash flows under the terms of the note agreements or debt agreements, as applicable, discounted at an estimated market rate of interest at September 30, 2022 and December 31, 2021, respectively. The fair values of senior debt and junior subordinated debt at September 30, 2022 and December 31, 2021 were determined using inputs to the valuation methodology that are unobservable (Level 3).
|
Senior Debt |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Senior Debt | Senior DebtThe Company repaid $40.0 million of loans that were outstanding under a credit agreement (the “2017 Facility”) in the three months ended March 31, 2022. At September 30, 2022, unsecured loans of $21.5 million and secured letters of credit totaling $22.6 million were outstanding under the 2017 Facility. The 2017 Facility provides the Company with a revolving line of credit of up to $100.0 million, which may be used for loans and letters of credit made or issued, at the borrowers’ option, on a secured or unsecured basis. The 2017 Facility contains certain financial and other covenants which the Company was in compliance with at September 30, 2022. |
Series A Preferred Shares |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Temporary Equity [Abstract] | |
Series A Preferred Shares | Series A Preferred Shares On February 24, 2022, we entered into an Investment Agreement with GPC Partners Investments (Thames) LP (“GPC Partners”), an affiliate of Gallatin Point Capital LLC, relating to the issuance and sale of 150,000 7% Series A Perpetual Cumulative Convertible Preferred Shares, par value $0.00125 per share (the “Series A Preferred Shares”), for an aggregate purchase price of $150.0 million, or $1,000 per share, in a private placement. The transaction closed on March 1, 2022 (the “Series A Closing Date”). The Series A Preferred Shares rank senior to our common shares with respect to dividend rights and rights on the distribution of assets on any liquidation, dissolution or winding up of the affairs of the Company, upon which the holders of Series A Preferred Shares would receive the greater of the $1,000 liquidation preference per share (the “Liquidation Preference”) plus accrued and unpaid dividends, or the amount they would have received if they had converted all of their Series A Preferred Shares to common shares immediately before such liquidation, dissolution or winding up. Holders of the Series A Preferred Shares are entitled to a dividend at the initial rate of 7% of the Liquidation Preference per annum, paid in cash, in-kind in common shares or in Series A Preferred Shares, at our election. On the five-year anniversary of the Series A Closing Date, and each five-year anniversary thereafter, the dividend rate will reset to a rate equal to the five-year U.S. treasury rate plus 5.2%. Dividends accrue quarterly and are payable on March 31, June 30, September 30 and December 31 of each year. Cash dividends of $6.1 million have been paid in the nine months ended September 30, 2022, including $3.5 million on June 30, 2022 for the period from the Series A Closing Date through June 30, 2022, and $2.6 million on September 30, 2022. The Series A Preferred Shares are convertible at the option of the holders thereof at any time into common shares at an initial conversion price of $26.5950, making the Series A Preferred Shares initially convertible into 5,640,158 common shares. The conversion price is subject to customary anti-dilution adjustments, including cash dividends on the common shares above specified levels, as well as certain adjustments in case of adverse reserve developments. At any time on or after the two year anniversary of the Series A Closing Date, if the volume-weighted average price (“VWAP”) per Common Share is greater than 130% of the then-applicable conversion price for at least twenty (20) consecutive trading days, the Company will be able to elect to convert (a “Mandatory Conversion”) all of the outstanding Series A Preferred Shares into Common Shares. In the case of a Mandatory Conversion, each Series A Preferred Share then outstanding will be converted into (i) the number of Common Shares equal to the quotient of (A) the sum of the Liquidation Preference and the accrued and unpaid dividends with respect to such Series A Preferred Share to be converted divided by (B) the conversion price of such share in effect as of the date of the Mandatory Conversion plus (ii) cash in lieu of fractional shares. Upon any Mandatory Conversion on or before the five-year anniversary of the Series A Closing Date, all dividends that would have accrued from the date of the Mandatory Conversion to the later of the five-year anniversary of the Series A Closing Date or the last day of the eighth quarter following the date of the Mandatory Conversion, the last eight quarters of which will be discounted to present value using a discount rate of 3.5% per annum, and will be immediately payable in Common Shares, valued at the average of the daily VWAP of the Company’s Common Shares during the five (5) trading days immediately preceding the Mandatory Conversion. The holders of the Series A Preferred Shares may require us to repurchase their shares upon the occurrence of certain change of control events. Upon the occurrence of a Fundamental Change (as defined in the Certificate of Designations designating the Series A Preferred Shares), each holder of outstanding Series A Preferred Shares will be permitted to, at its election, (i) effective as of immediately prior to the Fundamental Change, convert all or a portion of its Series A Preferred Shares into Common Shares, or (ii) require the Company to repurchase any or all of such holder’s Series A Preferred Shares at a purchase price per Series A Preferred Share equal to the Liquidation Preference of such Series A Preferred Share plus accrued and unpaid dividends. The repurchase price will be payable in cash. Because the Company may be required to repurchase all or a portion of the Series A Preferred Shares at the option of the holder upon the occurrence of certain change of control events, the Series A Preferred Shares have been classified as mezzanine equity in the Company's condensed consolidated balance sheets and are recognized at fair value of $150.0 million (the proceeds on the date of issuance) less issuance costs of $5.1 million, resulting in a carrying value of $144.9 million. Under the terms of the Investment Agreement, GPC Partners has the right to designate one member of the Board (the “Series A Designee”). GPC Partners has designated Matthew Botein as the Series A Designee and, accordingly, the Board approved the appointment of Mr. Botein to serve as a Class I director with a term expiring at the 2024 annual meeting of the Company’s shareholders, effective following receipt of any necessary regulatory approvals. Until applicable regulatory approvals are obtained, Mr. Botein will have board observer status.
|
Capital Stock and Equity Awards |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock and Equity Awards | Capital Stock and Equity Awards Common Shares Total common shares outstanding increased from 37,373,066 at December 31, 2021 to 37,450,438 at September 30, 2022, reflecting 77,372 common shares issued in the nine months ended September 30, 2022 related to vesting of RSUs. Dividends The Company declared the following dividends on common shares during the first nine months of 2022 and 2021:
Included in the total dividends for the nine months ended September 30, 2022 and 2021 are $107,000 and $317,000, respectively, of dividend equivalents on unvested RSUs. The balance of dividends payable on unvested RSUs was $363,000 at September 30, 2022 and $518,000 at December 31, 2021. Equity Incentive Plans The Company’s shareholders have approved various equity incentive plans, including the 2014 Long Term Incentive Plan (“2014 LTIP”) and the 2014 Non-Employee Director Incentive Plan (“2014 Director Plan”) (collectively, the “Plans”). All awards issued under the Plans are issued at the discretion of the Board of Directors. Employees are eligible to receive non-qualified stock options, incentive stock options, share appreciation rights, performance shares, restricted shares, RSUs, and other awards under the 2014 LTIP. The maximum number of shares available for issuance under the 2014 LTIP is 4,171,150, and at September 30, 2022, 807,839 shares are available for grant. On July 26, 2022, the Board of Directors of the Company approved a new long-term incentive plan (the “LTI Plan”). The LTI Plan is designed to align compensation of designated senior officers of the Company with Company performance and shareholder interests over the long-term. Awards under the LTI Plan will be made in the form of performance restricted share units (a “PRSU”) and service based restricted share units (RSUs), with initial awards intended to be made in February 2023. Each PRSU will represent a contingent right to receive one Company common share based upon the level of achievement of certain performance metrics during the performance period, with payout for achievement of threshold, target and maximum performance levels to be set at 50%, 100% and 200% of the target number of PRSUs, respectively. The initial PRSU awards are intended to have a performance period of January 1, 2023 through December 31, 2025. Non-employee directors of the Company are eligible to receive non-qualified stock options, share appreciation rights, performance shares, restricted shares, RSUs, and other awards under the 2014 Director Plan. The maximum number of shares available for issuance under the 2014 Director Plan is 150,000, and at September 30, 2022, 77,708 shares are available for grant. Generally, awards issued under the 2014 LTIP and 2014 Director Plan vest immediately in the event that an award recipient is terminated without Cause (as defined in the applicable plans), and in the case of the 2014 LTIP for Good Reason (as defined in the applicable plans), at any time following a Change in Control (as defined in the applicable plans). Options The following table summarizes option activity:
All of the outstanding options are fully vested (vesting period of three years from date of grant) and have a contractual life of seven years from the original date of grant. All of the outstanding options have an exercise price equal to the fair value of the underlying shares at the date of grant. The weighted-average remaining contractual life of the options outstanding and exercisable at September 30, 2022 was 0.7 years. RSUs The following table summarizes RSU activity:
Outstanding RSUs granted to employees generally vest ratably over a three year vesting period. RSUs granted to non-employee directors have a one year vesting period. The holders of RSUs are entitled to dividend equivalents. The dividend equivalents are settled in cash at the same time that the underlying RSUs vest and are subject to the same risk of forfeiture as the underlying shares. The fair value of the RSUs granted is based on the market price of the underlying shares at the date of grant. Compensation Expense Share based compensation expense is recognized on a straight-line basis over the vesting period. The amount of expense and related tax benefit is summarized below:
At September 30, 2022, the Company had $13.5 million of unrecognized share based compensation expense expected to be charged to earnings over a weighted-average period of 2.0 years.
|
Subsequent Events |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 25, 2022, the Board of Directors declared a cash dividend of $0.05 per common share. The dividend is payable on December 30, 2022 to shareholders of record on December 12, 2022. On October 25, 2022, the Board of Directors declared a 7% dividend on the Series A Preferred Shares. The dividend of $2.6 million will be payable in cash on January 3, 2023 to shareholders of record on December 15, 2022. On October 25, 2022, the Board of Directors granted an employee a restricted share unit award under the 2014 LTIP with an aggregate fair value of $350,000 and a grant date of November 3, 2022. The award vests in one installment on March 1, 2024. At the 2022 annual general meeting of shareholders (the “Annual Meeting”) of the Company held on October 25, 2022, the Company’s shareholders approved an amendment (the “Second Amendment”) to the 2014 LTIP. The Board of Directors of the Company had previously approved the Second Amendment. The Second Amendment implements several changes to the 2014 LTIP including increasing the number of shares reserved for issuance under awards by 811,500 to a total of 4,982,650 shares.
|
Accounting Policies (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include the results of the Company and its subsidiaries from their respective dates of inception or acquisition, as applicable. Readers are urged to review the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 for a more complete description of the Company’s business and accounting policies. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results of operations for the full year. The consolidated balance sheet as of December 31, 2021 was derived from the Company’s audited annual consolidated financial statements. Intercompany transactions and balances have been eliminated.
|
Estimates and Assumptions | Estimates and Assumptions Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates.
|
Variable Interest Entities | Variable Interest Entities Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (“VIE”). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose, and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. The Company holds interests in VIEs through certain equity method investments included in “other invested assets” in the accompanying condensed consolidated balance sheets. The Company has determined that it should not consolidate any of the VIEs as it is not the primary beneficiary in any of the relationships. Although the investments resulted in the Company holding variable interests in the entities, they did not empower the Company to direct the activities that most significantly impact the economic performance of the entities.
|
Income Tax Expense | Income Tax ExpenseOur effective tax rate fluctuates from period to period based on the relative mix of income reported by country and the respective tax rates imposed by each tax jurisdiction. For U.S.-sourced income, the Company’s U.S. federal income tax expense differs from the amounts computed by applying the federal statutory income tax rate to income before taxes due primarily to interest income on tax-advantaged state and municipal securities, dividends received income, and excess tax benefits on share based compensation. |
Adopted Accounting Standards | Adopted Accounting Standards In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 simplifies the accounting for convertible debt instruments and convertible preferred stock and became effective for interim and annual periods beginning after December 15, 2021. The Company adopted the new standard concurrent with the issuance of our Series A preferred shares on March 1, 2022. Under ASU 2020-06, embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. The new guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and generally requires them to include the effect of potential share settlement for instruments that may be settled in cash or shares. Adoption of the new standard did not materially impact our financial position, results of operations, or earnings per share for the nine months ended September 30, 2022.
|
Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Summary of Available-for-Sale Investments | The Company’s available-for-sale fixed maturity securities are summarized as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Summary of Available-for-Sale Investments by Contractual Maturity | The amortized cost and fair value of available-for-sale investments in fixed maturity securities at September 30, 2022 are summarized, by contractual maturity, as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Gross Unrealized Losses and Fair Value for Available-for-Sale Securities | The following table shows the Company’s gross unrealized losses and fair value for available-for-sale securities aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Net Unrealized Gains and Losses on Investments | The Company’s net realized and unrealized gains and losses on investments are summarized as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Net Realized Gains and Losses on Investments | The Company’s net realized and unrealized gains and losses on investments are summarized as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Invested Assets | The Company invests selectively in private debt and equity opportunities. These investments, which together comprise the Company’s other invested assets, are primarily focused in renewable energy, limited partnerships, and bank holding companies.
(a)The Company's Excess and Surplus Lines and Corporate and Other segments own equity interests ranging from 2.6% to 32.6% in various LLCs whose principal objective is capital appreciation and income generation from owning and operating renewable energy production facilities (wind and solar). The LLCs are managed by an entity for which two former directors served as officers, and the Company’s Non-Executive Chairman has invested in certain of these LLCs. The equity method is used to account for the Company’s LLC investments. Income for the LLCs primarily reflects adjustments to the carrying values of investments in renewable energy projects to their determined fair values. The fair value adjustments are included in revenues for the LLCs. Expenses for the LLCs are not significant and are comprised of administrative and interest expenses. The Company received cash distributions from these investments totaling $1.4 million and $1.8 million in the nine months ended September 30, 2022 and 2021, respectively. (b)The Company's Excess and Surplus Lines and Corporate and Other segments have invested in notes receivable for renewable energy projects. At September 30, 2022, the Company held two notes issued by an entity for which two of our former directors serve as officers. Interest on the notes, which mature in 2025, is fixed at 12%. (c)The Company owns investments in limited partnerships that invest in concentrated portfolios including publicly-traded small cap equities, loans of middle market private equity sponsored companies, private equity general partnership interests, commercial mortgage-backed securities, and tranches of distressed home loans. Income from the partnerships is recognized under the equity method of accounting. During the three and nine months ended September 30, 2022, the Company recognized an impairment loss of $392,000 on one limited partnership in the Corporate & Other segment. At September 30, 2022, the Company’s Excess and Surplus Lines segment has outstanding commitments to invest another $5.3 million in the other limited partnerships. (d)The Company's Excess and Surplus Lines segment holds $4.5 million of subordinated notes issued by a bank holding company for which the Company’s Non-Executive Chairman was previously the Lead Independent Director and an investor and for which one of the Company’s directors is also an investor (the "Bank Holding Company"). Interest on the notes, which mature on August 12, 2023, is fixed at 7.6% per annum.
|
Goodwill and Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Gross Carrying Amounts and Accumulated Amortization for Finite-Lived Intangible Assets | The gross carrying amounts and accumulated amortization for each major specifically identifiable intangible asset class were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Gross Carrying Amounts for Indefinite-Lived Intangible Assets | The gross carrying amounts and accumulated amortization for each major specifically identifiable intangible asset class were as follows:
|
Earnings (Loss) Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share | The following represents a reconciliation of the numerator and denominator of the basic and diluted earnings (loss) per common share computations contained in the condensed consolidated financial statements:
|
Reserve for Losses and Loss Adjustment Expenses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Claims and Claims Adjustment Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Beginning and Ending Reserve Balances for Losses and Loss Adjustment Expenses | The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses, net of reinsurance, to the gross amounts reported in the condensed consolidated balance sheets. Reinsurance recoverables on unpaid losses and loss adjustment expenses are presented gross of an allowance for credit losses on reinsurance balances of $621,000 at September 30, 2022, $601,000 at June 30, 2022, $604,000 at March 31, 2022, $631,000 at December 31, 2021, $515,000 at September 30, 2021, and $335,000 at June 30, 2021, March 31, 2021, and December 31, 2020.
|
Other Comprehensive Loss (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Comprehensive Loss | The following table summarizes the components of other comprehensive loss:
|
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Summary of Company's Segment Results | The following table summarizes the Company’s segment results:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Underwriting Profit of Operating Segments by Individual Segment and Reconciliation to Consolidated Income Before Taxes | The following table reconciles the underwriting profit (loss) of the operating segments by individual segment to consolidated (loss) income before income taxes:
|
Other Operating Expenses and Other Expenses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Operating Expenses and Other Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Operating Expenses | Other operating expenses consist of the following:
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets Measured at Fair Value on a Recurring Basis | Assets measured at fair value on a recurring basis as of September 30, 2022 are summarized below:
Assets measured at fair value on a recurring basis as of December 31, 2021 are summarized below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Securities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | A reconciliation of the beginning and ending balances of available-for-sale fixed maturity securities, equity securities, and bank loan participations measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is shown below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Value and Fair Value | The carrying values and fair values of financial instruments are summarized below:
|
Capital Stock and Equity Awards (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Dividends | The Company declared the following dividends on common shares during the first nine months of 2022 and 2021:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Summary of Option Activity | The following table summarizes option activity:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Summary of RSU Activity | The following table summarizes RSU activity:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Summary of Share Based Compensation Expense and Related Tax Benefit | Share based compensation expense is recognized on a straight-line basis over the vesting period. The amount of expense and related tax benefit is summarized below:
|
Accounting Policies - Narrative (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022
USD ($)
insurance_company
reinsurance_company
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
insurance_company
reinsurance_company
|
Sep. 30, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Accounting Policies [Line Items] | |||||
Investment in variable interest entities | $ 28,200 | $ 28,200 | $ 26,900 | ||
Effective U.S. federal income tax expense (benefit) rate | 30.90% | (17.80%) | |||
Pre-tax income (loss) | (4,613) | $ (21,301) | $ 19,176 | $ (129,647) | |
Income tax expense (benefit) | 8 | 2,588 | 5,928 | (23,141) | |
Development on prior year loss reserves | (1,129) | 44,098 | 4,098 | 210,782 | |
Excess and Surplus Lines | |||||
Accounting Policies [Line Items] | |||||
Development on prior year loss reserves | $ 139 | $ 29,500 | $ 48 | $ 190,700 | |
UNITED STATES | |||||
Accounting Policies [Line Items] | |||||
Number of insurance companies | insurance_company | 5 | 5 | |||
BERMUDA | |||||
Accounting Policies [Line Items] | |||||
Number of insurance companies | reinsurance_company | 2 | 2 |
Investments - Schedule of Contract Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Cost or Amortized Cost | ||
One year or less | $ 50,179 | |
After one year through five years | 439,524 | |
After five years through ten years | 351,577 | |
After ten years | 281,648 | |
Residential mortgage-backed | 388,386 | |
Commercial mortgage and asset-backed | 328,022 | |
Total fixed maturity securities, Cost or Amortized Cost | 1,839,336 | |
Fair Value | ||
One year or less | 48,892 | |
After one year through five years | 409,673 | |
After five years through ten years | 300,364 | |
After ten years | 227,547 | |
Residential mortgage-backed | 348,927 | |
Commercial mortgage and asset-backed | 303,845 | |
Total investments available-for-sale, Fair Value | $ 1,639,248 | $ 1,677,561 |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Dec. 11, 2007 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Goodwill | $ 181,831 | $ 181,831 | $ 181,831 | |
James River Group, Inc. | ||||
Business Acquisition [Line Items] | ||||
Percentage of outstanding shares | 100.00% |
Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Acquired Intangible Assets [Line Items] | ||
Identifiable intangibles not subject to amortization | $ 31,164 | $ 31,164 |
Identifiable intangible assets subject to amortization | ||
Gross Carrying Amount | 11,611 | 11,611 |
Accumulated Amortization | 7,008 | 6,736 |
Total Intangible Assets, Gross | 42,775 | 42,775 |
Broker relationships | ||
Identifiable intangible assets subject to amortization | ||
Gross Carrying Amount | 11,611 | 11,611 |
Accumulated Amortization | $ 7,008 | 6,736 |
Life (Years) | 24 years 7 months 6 days | |
Trademarks | ||
Acquired Intangible Assets [Line Items] | ||
Identifiable intangibles not subject to amortization | $ 22,200 | 22,200 |
Insurance licenses and authorities | ||
Acquired Intangible Assets [Line Items] | ||
Identifiable intangibles not subject to amortization | $ 8,964 | $ 8,964 |
Earnings (Loss) Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Earnings Per Share [Abstract] | ||||
Net (loss) income | $ (4,621) | $ (23,889) | $ 13,248 | $ (106,506) |
Less: Dividends on Series A preferred shares | (2,625) | 0 | (6,125) | 0 |
Net (loss) income available to common shareholders | $ (7,246) | $ (23,889) | $ 7,123 | $ (106,506) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 37,450,381 | 37,278,469 | 37,435,798 | 34,161,022 |
Dilutive potential common shares (in shares) | 0 | 0 | 206,858 | 0 |
Diluted (in shares) | 37,450,381 | 37,278,469 | 37,642,656 | 34,161,022 |
Net (loss) income per common share: | ||||
Basic (in dollars per share) | $ (0.19) | $ (0.64) | $ 0.19 | $ (3.12) |
Dilutive potential common shares (in dollars per share) | 0 | 0 | 0 | 0 |
Diluted (in dollars per share) | $ (0.19) | $ (0.64) | $ 0.19 | $ (3.12) |
Earnings (Loss) Per Share - Narrative (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Stock options, restricted share units ("RSU's") and convertible preferred stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of securities excluded from the calculations of diluted earnings per share (in shares) | 5,830,234 | 133,994 | 4,421,223 | 203,077 |
Other Comprehensive Loss - Summary of Components of Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Unrealized losses arising during the period, before U.S. income taxes | $ (70,538) | $ (10,174) | $ (233,501) | $ (39,972) |
U.S. income taxes | 8,910 | 1,219 | 28,295 | 4,654 |
Unrealized losses arising during the period, net of U.S. income taxes | (61,628) | (8,955) | (205,206) | (35,318) |
Less reclassification adjustment: | ||||
Net realized investment (losses) gains | (972) | 3,167 | 284 | 4,334 |
U.S. income taxes | 0 | (663) | (263) | (863) |
Reclassification adjustment for investment (losses) gains realized in net income | (972) | 2,504 | 21 | 3,471 |
Other comprehensive loss | $ (60,656) | $ (11,459) | $ (205,227) | $ (38,789) |
Other Comprehensive Loss - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Fixed maturity securities, available-for-sale | $ 1,639,248 | $ 1,639,248 | $ 1,677,561 | ||
Net realized investment (losses) gains | (972) | $ 3,167 | 284 | $ 4,334 | |
Net gain (loss) in bank loan participations | (2,201) | 195 | (14,194) | 5,981 | |
Net realized and unrealized gains (losses) on investments in equity securities | $ (4,568) | $ 641 | $ (15,912) | $ 3,417 |
Segment Information - Narrative (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
Segment
|
Sep. 30, 2021
USD ($)
|
|
Segment Reporting [Abstract] | ||||
Number of reportable segments | Segment | 4 | |||
Specialty Admitted Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Gross fee income | $ | $ 914 | $ 1,000 | $ 2,600 | $ 2,900 |
Segment Information - Summary of Segment Results (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Segment Reporting Information [Line Items] | |||||
Gross written premiums | $ 358,505 | $ 346,599 | $ 1,118,155 | $ 1,100,000 | |
Net earned premiums | 190,189 | 170,608 | 566,275 | 503,906 | |
Underwriting profit (loss) of operating segments | 19,731 | (30,354) | 58,205 | (155,925) | |
Net investment income | 17,306 | 15,289 | 48,278 | 44,726 | |
Interest expense | 4,950 | 2,227 | 11,291 | 6,692 | |
Segment revenues | 201,229 | 190,993 | 587,983 | 565,540 | |
Segment goodwill | 181,831 | 181,831 | 181,831 | 181,831 | $ 181,831 |
Segment assets | 5,205,491 | 4,784,099 | 5,205,491 | 4,784,099 | $ 4,948,550 |
Excess and Surplus Lines | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 204,785 | 217,673 | 675,702 | 613,045 | |
Net earned premiums | 139,095 | 119,760 | 408,280 | 351,413 | |
Underwriting profit (loss) of operating segments | 16,402 | (21,527) | 60,193 | (145,556) | |
Net investment income | 6,955 | 4,678 | 15,795 | 11,857 | |
Interest expense | 0 | 0 | 0 | 0 | |
Segment revenues | 140,946 | 127,603 | 405,997 | 370,417 | |
Segment goodwill | 181,831 | 181,831 | 181,831 | 181,831 | |
Segment assets | 2,623,257 | 1,835,108 | 2,623,257 | 1,835,108 | |
Specialty Admitted Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 123,389 | 121,175 | 374,066 | 377,400 | |
Net earned premiums | 17,824 | 19,704 | 55,283 | 54,656 | |
Underwriting profit (loss) of operating segments | 285 | 3,084 | 1,746 | 6,488 | |
Net investment income | 1,066 | 754 | 2,757 | 2,342 | |
Interest expense | 0 | 0 | 0 | 0 | |
Segment revenues | 19,602 | 21,009 | 59,152 | 60,667 | |
Segment goodwill | 0 | 0 | 0 | 0 | |
Segment assets | 1,222,280 | 1,053,286 | 1,222,280 | 1,053,286 | |
Casualty Reinsurance | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 30,331 | 7,751 | 68,387 | 109,555 | |
Net earned premiums | 33,270 | 31,144 | 102,712 | 97,837 | |
Underwriting profit (loss) of operating segments | 3,044 | (11,911) | (3,734) | (16,857) | |
Net investment income | 9,596 | 9,699 | 29,750 | 29,962 | |
Interest expense | 1,235 | 0 | 2,577 | 0 | |
Segment revenues | 40,869 | 42,167 | 122,594 | 133,671 | |
Segment goodwill | 0 | 0 | 0 | 0 | |
Segment assets | 1,290,573 | 1,871,846 | 1,290,573 | 1,871,846 | |
Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 0 | 0 | 0 | 0 | |
Net earned premiums | 0 | 0 | 0 | 0 | |
Underwriting profit (loss) of operating segments | 0 | 0 | 0 | 0 | |
Net investment income | (311) | 158 | (24) | 565 | |
Interest expense | 3,715 | 2,227 | 8,714 | 6,692 | |
Segment revenues | (188) | 214 | 240 | 785 | |
Segment goodwill | 0 | 0 | 0 | 0 | |
Segment assets | $ 69,381 | $ 23,859 | $ 69,381 | $ 23,859 |
Other Operating Expenses and Other Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Other Operating Expenses and Other Expenses [Abstract] | ||||
Amortization of policy acquisition costs | $ 23,296 | $ 19,951 | $ 69,321 | $ 64,830 |
Other underwriting expenses of the operating segments | 15,841 | 15,955 | 52,151 | 48,326 |
Other operating expenses of the Corporate and Other segment | 8,447 | 7,287 | 25,209 | 23,258 |
Total | 47,584 | 43,193 | 146,681 | 136,414 |
Other expenses | $ 210 | $ 706 | $ 578 | $ 2,231 |
Fair Value Measurements - Summary of Available-for-Sale Fixed Maturity Securities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - Available-for-sale fixed maturity securities and equity securities - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 0 | $ 231 | $ 102 | $ 980 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Transfers in to Level 3 | 0 | 8 | 0 | 8 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | (92) | (282) |
Maturities, calls and paydowns | 0 | (23) | 0 | (64) |
Amortization of discount | 0 | 0 | 0 | 0 |
Total gains or losses (realized/unrealized)-Included in earnings | 0 | 156 | (10) | (270) |
Total gains or losses (realized/unrealized)-Included in other comprehensive income | 0 | 0 | 0 | 0 |
Ending balance | $ 0 | $ 372 | $ 0 | $ 372 |
Fair Value Measurements - Narrative (Details) $ in Thousands |
Sep. 30, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
security
|
Sep. 30, 2021
USD ($)
bank_loan_participation
security
|
Jun. 30, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
bank_loan_participation
security
|
---|---|---|---|---|---|---|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Number of equity securities held | security | 1 | 3 | 2 | |||
Number of bank loan participations held | bank_loan_participation | 1 | 1 | ||||
Recurring basis | Available-for-sale fixed maturity securities and equity securities | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Asset value | $ | $ 0 | $ 0 | $ 102 | $ 372 | $ 231 | $ 980 |
Senior Debt (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2022 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Debt Instrument [Line Items] | ||||
Repayments of senior debt | $ 40,000,000 | $ 0 | ||
Senior debt | 222,300,000 | $ 262,300,000 | ||
2017 Facility | JRG Reinsurance Company, Ltd. | ||||
Debt Instrument [Line Items] | ||||
Amount of letters of credit issued | 22,600,000 | |||
Line of credit (up to) | 100,000,000 | |||
Unsecured Debt | 2017 Facility | ||||
Debt Instrument [Line Items] | ||||
Repayments of senior debt | $ 40,000,000 | |||
Senior debt | $ 21,500,000 |
Capital Stock and Equity Awards - Common Shares (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, shares outstanding (in shares) | 37,450,438 | 37,450,438 | 37,373,066 | |||||
RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted stock unit dividend equivalents | $ 107 | $ 317 | ||||||
Dividends payable | $ 363 | $ 363 | $ 518 | |||||
Common stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, shares outstanding (in shares) | 37,450,438 | 37,287,244 | 37,450,438 | 37,287,244 | 37,450,264 | 37,373,066 | 37,275,562 | 30,649,261 |
Vesting of RSUs (in shares) | 174 | 174 | 77,372 | 112,504 |
Capital Stock and Equity Awards - Summary of Cash Dividends Declared (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Jul. 26, 2022 |
Jun. 30, 2022 |
Apr. 28, 2022 |
Mar. 31, 2022 |
Feb. 16, 2022 |
Sep. 30, 2021 |
Jul. 27, 2021 |
Jun. 30, 2021 |
Apr. 27, 2021 |
Mar. 31, 2021 |
Feb. 24, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Stockholders' Equity Note [Abstract] | ||||||||||||||||
Dividend declared per share (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.05 | $ 0.30 | $ 0.15 | $ 0.90 | ||||||
Total Amount | $ 1,908,287 | $ 1,907,953 | $ 1,908,482 | $ 11,281,523 | $ 11,290,990 | $ 9,345,489 | $ 5,724,722 | $ 31,918,002 |
Capital Stock and Equity Awards - Equity Incentive Plans (Details) - shares |
Sep. 30, 2022 |
Jul. 26, 2022 |
---|---|---|
PRSU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares to be received per PRSU (in shares) | 1 | |
Payout for achievement, threshold | 50.00% | |
Payout for achievement, target | 100.00% | |
Payout for achievement, maximum | 200.00% | |
2014 LTIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares available for issuance (in shares) | 4,171,150 | |
Number of shares available for grant (in shares) | 807,839 | |
2014 Director Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares available for issuance (in shares) | 150,000 | |
Number of shares available for grant (in shares) | 77,708 |
Capital Stock and Equity Awards - Summary of RSU Activity (Details) - RSUs - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Shares | ||
Unvested, beginning of period (in shares) | 292,135 | 399,856 |
Granted (in shares) | 545,450 | 139,682 |
Vested (in shares) | (112,527) | (165,131) |
Forfeited (in shares) | (9,760) | (56,575) |
Unvested, end of period (in shares) | 715,298 | 317,832 |
Weighted- Average Grant Date Fair Value | ||
Unvested, beginning of period (in dollars per share) | $ 45.89 | $ 43.59 |
Granted (in dollars per share) | 20.54 | 50.22 |
Vested (in dollars per share) | 45.49 | 41.86 |
Forfeited (in dollars per share) | 22.97 | 45.91 |
Unvested, end of period (in dollars per share) | $ 26.94 | $ 47.00 |
Vesting period (in years) | 3 years | |
Non-employee directors | ||
Weighted- Average Grant Date Fair Value | ||
Vesting period (in years) | 1 year |
Capital Stock and Equity Awards - Summary of Share Based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Stockholders' Equity Note [Abstract] | ||||
Share based compensation expense | $ 2,228 | $ 1,476 | $ 6,210 | $ 5,243 |
U.S. tax benefit on share based compensation expense | $ 415 | $ 306 | $ 1,160 | $ 902 |
Capital Stock and Equity Awards - Compensation Expense (Details) - RSUs $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2022
USD ($)
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share based compensation expense | $ 13.5 |
Weighted-average period of unrecognized share based compensation expense | 2 years |
,6BO6U^Y 9E*)D#XJ2$ZKPI@YM,CV3X_9.HU=9:=@VB63:
M03RGF!F"#X4FU;1F(A;"LFQSS+=:0>H:*$W[&G.E"PV)6!?WJS6X8$JUY=7U
MD-%"#Y4&X669T]*K-- ?ME*1Q2&A,Z0MX
MZ1AKZO'2[\4Z!DG^NMH8J[$T_GXJWAXN>QK.M 5FTU'P;8Y/:KVD/\+:O3<59OL_9[,W/8.V-QPV[-
M9!&:AN[(O!MB/SR4:LG3'2?/O_$_U5EFT]Y9SZ$0+'^D-QQ!9'&4UN>2W)Q+
M0D63:YXNH6I\.1L$%A8I*T3R; [!S6&V&DV'1;5! D^T1,R\*:WVKU0)U=&I
M"8'JS69_HNJ<&=0C2<+@&A*3+DJE9P""5_O-Q#G_#&@0F:$O+&./5?ZJ-J*#
MIOG"\ ?#D#B9C>K;Q8*"&" 2KE2)AEA6TMRE0G//L/"D8D//
M(A**29&GFE$P&0DU **MU*D"SC!KF\A8E#%2N<]2XXG:7$!;ZWPD2+&,_7>N
M)IL&=0).1!#@S@4/7&(+C[Z!T,^34 (@%A9;@Z2+#J5^43>%Z=/]4NH@^R7:N#G)?\>S\="./YHK7_:_^3O./[2
M;5@>?R^( %O2CP\JMW'2T7T %?+OWN8V!%OSGRN>]M,"?$]O.[H/
M=$#_0\A7_P=02P,$% @ #X%B50/-:>[!% )ST !D !X;"]W;W)K
MU;L!^+W^8>Y^ BLK-MJ*F>0*A>Y6J<$3;58MVF5
M%HT$T<4>TI1ZZ+I\D%5!NA51:'G@M9_*M\(8,T6.%8*#CV4#3L_JU3IE!=?"
ML6)(Q_-(Q*&3D*"!Y1!7=,-/0SQU_5C\*)=&HPYKU/D&C;J>%44>D74M)V"E
MNA:6PCKU\-"YK%/7#ZV = K-^C36\V /=#?TG)%2(\>Q$L\6;F@Y6-(L &7H
M-?)H1/!$O=H.UAT)WTK(@AQC0+9O^7'\/94:VI;G)B(,/#":0!9T([&_69VA
M#[L+ UQ#+FY XIY!WD'0*11^%80.XT1*ZV[5J(C. S)\Y=/D#^XG#H=^
MF7+1^=$1G\'03ZN,ZV"XWQ^U7]M?;UV['RWMIKN??B$77%&;)U=++!V/9M,3
M4;F?4[D7JS?\$Z:%ME87_+A6$D*A"1A?:FV;%]J@_4W;R_\!4$L#!!0 (
M ^!8E6))R:2+04 &,- 9 >&PO=V]R:W-H965T7KL;>VPW -BQ4JT?>1K+6MNTX5E<&J!"L/Z *7F-;&\ *^*D
MPE".S?\#K7.CH:[0O-/+F,I;?L8#,N0>.NB*5(1>6H4Q$^>KR,-N9:H'G6@)
M2MP7NYDI>$2Y0IL]ZE>(DY;F<4NSE8[;=R=Z8PBHEJE&K !W*&460>"Z*GE#&^C($D51D*&09AF
M&$$J# 4&WF1Y15,J#117[-<#_"3"+."98B()4AFQ, QDPGM9D?% 0.UO!Z"%
MK+PL B;B(.*225@5!CR*=E0%">PB&XKZ07=5UR$X#C(%&P(>QRP+5!:S82C$
M.5D5\ACU@.Q#9%.%O=)>>2!#VC 1BD70Q7=0]J#K%9(I(AYD44QVQ# 03VF<
ML:%(TW/$$0IDU@O-C9FN 6LF4A&DL/KY?OV^W?N-8 YZ01!D$",?4B5D&.I(
MIIQ&"*9*0A9G2)5@*I!.LH!P1.?_/K! G"FF4
ME/,D\B6%N1282_8 @22+-!#J,"]$//6P513PD DN45RR%U=Q#*)0!XFA@\9A
M3,0@% 16!$E$10Y.B+: $_)CJ=>P@&I3T!4L -U)8%45/E00CJ"%(#R*B8D
MJB]A*?Q @JD
FL*CDM7E'NKZ923G=U\M"UJ^-BC9I;++7QXHG(;-,!D
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MP[N+13Q_!D]G*34O(5P9?-WP1!UZS._
MMUH+]W2#RG:+)$]V"Q_DIJ:PD"[GC=C@ ]+'YM[Q+!U9*JG1>&D-.%PODNO\
M\F86XF/ )XF=WQM#<+*R]FN8_%,MDBP(0H4E!0;!?UN\1:4"$