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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets GOODWILL AND OTHER INTANGIBLE ASSETS
The following table shows an analysis of goodwill and other intangible assets included in goodwill and other intangible assets on the Company’s consolidated balance sheets:
 
 
 
 
 
 
 
 
 
 
Goodwill and other intangible assets
 
 
  
Goodwill
 
Other intangible assets
 
Total
 
 
Balance as of December 31, 2017
 
 
 
 
 
 
 
Gross amount
$
199,889

 
$
96,599

 
$
296,488

 
 
Accumulated impairment losses and amortization
(2,299
)
 
(51,044
)
 
(53,343
)
 
 
 
197,590

 
45,555

 
243,145

 
 
Amortization
—

 
(5,727
)
 
(5,727
)
 
 
Balance as of December 31, 2018
 
 
 
 
 
 
 
Gross amount
199,889

 
96,599

 
296,488

 
 
Accumulated impairment losses and amortization
(2,299
)
 
(56,771
)
 
(59,070
)
 
 
 
197,590

 
39,828

 
237,418

 
 
Acquired during the year
13,094

 
18,000

 
31,094

 
 
Amortization
—

 
(6,286
)
 
(6,286
)
 
 
Balance as of December 31, 2019
 
 
 
 
 
 
 
Gross amount
212,983

 
114,599

 
327,582

 
 
Accumulated impairment losses and amortization
(2,299
)
 
(63,057
)
 
(65,356
)
 
 
 
$
210,684

 
$
51,542

 
$
262,226

 
 
 
 
 
 
 
 
 

During the quarter ended March 31, 2019, the Company recognized goodwill of $13.1 million, based on foreign exchange rates on March 22, 2019, attributable to the excess of the purchase price over the fair value of the net assets acquired in the TMR Stock Purchase. In addition, the Company recognized identifiable finite lived intangible assets of $11.2 million and identifiable indefinite lived intangible assets of $6.8 million associated with TMR. Refer to “Note 3. Acquisition of Tokio Millennium Re” for additional information related to goodwill and other intangible assets associated with the acquisition of TMR.
The following table shows an analysis of goodwill and other intangible assets included in investments in other ventures, under equity method on the Company’s consolidated balance sheets:
 
 
 
 
 
 
 
 
 
 
Goodwill and other intangible assets included
in investments in other  ventures, under equity method
 
 
  
Goodwill    
 
Other intangible  assets    
 
Total    
 
 
Balance as of December 31, 2017
 
 
 
 
 
 
 
Gross amount
$
12,318

 
$
51,796

 
$
64,114

 
 
Accumulated impairment losses and amortization
(4,500
)
 
(42,880
)
 
(47,380
)
 
 
 
7,818

 
8,916

 
16,734

 
 
Acquired during the year
2,780

 
11,108

 
13,888

 
 
Amortization
—

 
(2,886
)
 
(2,886
)
 
 
Balance as of December 31, 2018
 
 
 
 
 
 
 
Gross amount
15,098

 
62,904

 
78,002

 
 
Accumulated impairment losses and amortization
(4,500
)
 
(45,766
)
 
(50,266
)
 
 
 
10,598

 
17,138

 
27,736

 
 
Acquired during the year
—

 
4

 
4

 
 
Amortization
—

 
(2,816
)
 
(2,816
)
 
 
Balance as of December 31, 2019
 
 
 
 
 
 
 
Gross amount
15,098

 
62,908

 
78,006

 
 
Accumulated impairment losses and amortization
(4,500
)
 
(48,582
)
 
(53,082
)
 
 
 
$
10,598

 
$
14,326

 
$
24,924

 
 
 
 
 
 
 
 
 

On March 23, 2018, the Company made an equity investment in TWFG Holding Company LLC (“TWFG”) and the transaction was accounted under the equity method of accounting. Total consideration paid was allocated to the Company’s proportionate share of the net assets of TWFG, other identifiable intangible assets and goodwill. In connection with the acquisition of TWFG, the Company recognized identifiable finite lived intangible assets of $2.0 million and identifiable indefinite lived intangible assets of $9.1 million. In addition, the Company recognized goodwill of $2.8 million.
In accordance with the Company’s established accounting policy, the beginning of the fourth quarter was used as the date for performing the annual impairment test. The Company first assessed qualitative factors to determine whether it was necessary to perform a quantitative impairment test. Based on its qualitative assessment, the Company determined it was not more likely than not that the fair value of the goodwill and other intangible assets in question were less than their respective carrying amounts. The qualitative assessment included the following factors which the Company determined had not significantly deteriorated given specific facts and circumstances: macroeconomic conditions; industry and market conditions; costs factors; and overall financial performance. The Company also performed a quantitative analysis using a discounted cash flow model and concluded that the full amount of the goodwill and other intangible assets were not impaired. Other than the goodwill and other intangible assets acquired during the year as noted above and normal course amortization of intangible assets, in accordance with the Company’s established accounting policy, there were no adjustments to carried goodwill and other intangible assets during the year ended December 31, 2019.
The gross carrying value and accumulated amortization by major category of other intangible assets included in goodwill and other intangible assets and investments in other ventures, under equity method on the Company’s consolidated balance sheets is shown below:
 
 
 
 
 
 
 
 
 
 
Other intangible assets
 
 
At December 31, 2019
Gross 
carrying  
value
 
Accumulated
amortization and impairment losses
 
Total
 
 
Customer relationships and customer lists
$
108,651

 
$
(69,298
)
 
$
39,353

 
 
Value of business acquired
20,200

 
(20,200
)
 
—

 
 
Software
12,230

 
(12,230
)
 
—

 
 
Licenses
26,186

 
—

 
26,186

 
 
Patents and intellectual property
4,500

 
(4,500
)
 
—

 
 
Covenants not-to-compete
4,030

 
(4,030
)
 
—

 
 
Trademarks and trade names
1,710

 
(1,381
)
 
329

 
 
 
$
177,507

 
$
(111,639
)
 
$
65,868

 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
Other intangible assets
 
 
At December 31, 2018
Gross 
carrying  
value
 
Accumulated
amortization and impairment losses
 
Total
 
 
Customer relationships and customer lists
$
97,419

 
$
(60,221
)
 
$
37,198

 
 
Value of business acquired
20,200

 
(20,200
)
 
—

 
 
Software
12,230

 
(12,230
)
 
—

 
 
Licenses
19,414

 
—

 
19,414

 
 
Patents and intellectual property
4,500

 
(4,500
)
 
—

 
 
Covenants not-to-compete
4,030

 
(4,030
)
 
—

 
 
Trademarks and trade names
1,710

 
(1,356
)
 
354

 
 
 
$
159,503

 
$
(102,537
)
 
$
56,966

 
 
 
 
 
 
 
 
 

The remaining useful life of intangible assets with finite lives ranges from 0.5 to 14.2 years, with a weighted-average amortization period of 7.0 years. Expected amortization of the other intangible assets, including other intangible assets recorded in investments in other ventures, under equity method, is shown below:
 
 
 
 
 
 
 
 
 
 
Other
intangibles
 
Other
intangible
assets 
included
in investments
in other
ventures, under
equity method
 
Total
 
 
2020
$
6,317

 
$
1,955

 
$
8,272

 
 
2021
5,990

 
1,095

 
7,085

 
 
2022
5,602

 
1,095

 
6,697

 
 
2023
5,173

 
631

 
5,804

 
 
2024
4,716

 
194

 
4,910

 
 
2024 and thereafter
6,705

 
209

 
6,914

 
 
Total remaining amortization expense
34,503

 
5,179

 
39,682

 
 
Indefinite lived
17,039

 
9,147

 
26,186

 
 
Total
$
51,542

 
$
14,326

 
$
65,868