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Gross Written Premiums by Segment
|
| |
Gross Written Premiums
Year Ended December 31, 2015 |
| |
% of Total
|
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| | |
(in thousands)
|
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Excess and Surplus Lines segment
|
| | | $ | 308,717 | | | | | | 54.0% | | |
Specialty Admitted Insurance segment
|
| | | | 90,978 | | | | | | 15.9% | | |
Casualty Reinsurance segment
|
| | | | 172,499 | | | | | | 30.1% | | |
| | | | $ | 572,194 | | | | | | 100.0% | | |
Gross Written Premiums by Market | | | | ||||||||||
Non-admitted markets
|
| | | $ | 416,686 | | | | | | 72.8% | | |
Admitted markets
|
| | | | 155,508 | | | | | | 27.2% | | |
| | | | $ | 572,194 | | | | | | 100.0% | | |
|
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Year End December 31,
|
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Nine Months Ended
September 30, |
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2015
|
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2014
|
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2013
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2016
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2015
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($ in thousands except for share data)
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Operating Results: | | | | | | | |||||||||||||||||||||||||
Gross written premiums(1)
|
| | | $ | 572,194 | | | | | $ | 518,767 | | | | | $ | 368,518 | | | | | $ | 563,908 | | | | | $ | 463,505 | | |
Ceded written premiums(2)
|
| | | | (101,162) | | | | | | (68,684) | | | | | | (43,352) | | | | | | (118,808) | | | | | | (73,104) | | |
Net written premiums
|
| | | $ | 471,032 | | | | | $ | 450,083 | | | | | $ | 325,166 | | | | | $ | 445,100 | | | | | $ | 390,401 | | |
Net earned premiums
|
| | | $ | 461,205 | | | | | $ | 396,212 | | | | | $ | 328,078 | | | | | $ | 368,834 | | | | | $ | 345,776 | | |
Net investment income
|
| | | | 44,835 | | | | | | 43,005 | | | | | | 45,373 | | | | | | 38,622 | | | | | | 34,496 | | |
Net realized investment (losses) gains
|
| | | | (4,547) | | | | | | (1,336) | | | | | | 12,619 | | | | | | 2,376 | | | | | | (2,473) | | |
Other income
|
| | | | 3,428 | | | | | | 1,122 | | | | | | 222 | | | | | | 7,373 | | | | | | 2,018 | | |
Total revenues
|
| | | | 504,921 | | | | | | 439,003 | | | | | | 386,292 | | | | | | 417,205 | | | | | | 379,817 | | |
Losses and loss adjustment expenses
|
| | | | 279,016 | | | | | | 237,368 | | | | | | 184,486 | | | | | | 233,491 | | | | | | 209,133 | | |
Other operating expenses
|
| | | | 157,803 | | | | | | 133,055 | | | | | | 114,804 | | | | | | 124,732 | | | | | | 119,764 | | |
Other expenses
|
| | | | 730 | | | | | | 16,012 | | | | | | 677 | | | | | | 36 | | | | | | 207 | | |
Interest expense
|
| | | | 6,999 | | | | | | 6,347 | | | | | | 6,777 | | | | | | 6,294 | | | | | | 5,217 | | |
Amortization of intangible
assets |
| | | | 597 | | | | | | 597 | | | | | | 2,470 | | | | | | 447 | | | | | | 447 | | |
Total expenses
|
| | | | 445,145 | | | | | | 393,379 | | | | | | 309,214 | | | | | | 365,000 | | | | | | 334,768 | | |
Income before income tax expense
|
| | | | 59,776 | | | | | | 45,624 | | | | | | 77,078 | | | | | | 52,205 | | | | | | 45,049 | | |
Income tax expense
|
| | | | 6,279 | | | | | | 939 | | | | | | 9,741 | | | | | | 3,406 | | | | | | 4,222 | | |
Net income(3)
|
| | | $ | 53,497 | | | | | $ | 44,685 | | | | | $ | 67,337 | | | | | $ | 48,799 | | | | | $ | 40,827 | | |
Net operating income(4)
|
| | | $ | 61,090 | | | | | $ | 58,424 | | | | | $ | 58,918 | | | | | $ | 48,097 | | | | | $ | 43,230 | | |
Earnings per Share: | | | | | | | |||||||||||||||||||||||||
Basic
|
| | | $ | 1.87 | | | | | $ | 1.57 | | | | | $ | 2.21 | | | | | $ | 1.68 | | | | | $ | 1.43 | | |
Diluted
|
| | | $ | 1.82 | | | | | $ | 1.55 | | | | | $ | 2.21 | | | | | $ | 1.64 | | | | | $ | 1.40 | | |
Weighted – average shares outstanding – diluted
|
| | | | 29,334,918 | | | | | | 28,810,301 | | | | | | 30,500,800 | | | | | | 29,834,686 | | | | | | 29,244,520 | | |
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At or for the Year Ended December 31,
|
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At or for the Nine Months
Ended September 30, |
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2015
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2014
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2013
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2016
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2015
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($ in thousands except for share data)
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Balance Sheet Data: | | | | | | | |||||||||||||||||||||||||
Cash and invested assets
|
| | | $ | 1,350,697 | | | | | $ | 1,310,628 | | | | | $ | 1,217,078 | | | | | $ | 1,450,726 | | | | | $ | 1,378,896 | | |
Reinsurance recoverables
|
| | | | 143,086 | | | | | | 128,979 | | | | | | 120,477 | | | | | | 162,847 | | | | | | 139,108 | | |
Goodwill and intangible assets
|
| | | | 221,359 | | | | | | 221,956 | | | | | | 222,553 | | | | | | 220,912 | | | | | | 221,509 | | |
Total assets
|
| | | | 2,055,497 | | | | | | 1,959,292 | | | | | | 1,806,793 | | | | | | 2,347,911 | | | | | | 2,096,115 | | |
Reserve for losses and loss adjustment expenses
|
| | | | 785,322 | | | | | | 716,296 | | | | | | 646,452 | | | | | | 874,662 | | | | | | 779,009 | | |
Unearned premiums
|
| | | | 301,104 | | | | | | 277,579 | | | | | | 218,532 | | | | | | 414,009 | | | | | | 329,867 | | |
Senior debt
|
| | | | 88,300 | | | | | | 88,300 | | | | | | 58,000 | | | | | | 88,300 | | | | | | 88,300 | | |
Junior subordinated debt
|
| | | | 104,055 | | | | | | 104,055 | | | | | | 104,055 | | | | | | 104,055 | | | | | | 104,055 | | |
Total liabilities
|
| | | | 1,374,459 | | | | | | 1,271,371 | | | | | | 1,105,303 | | | | | | 1,602,146 | | | | | | 1,388,699 | | |
Total shareholders’ equity
|
| | | | 681,038 | | | | | | 687,921 | | | | | | 701,490 | | | | | | 745,765 | | | | | | 707,416 | | |
GAAP Underwriting Ratios: | | | | | | | |||||||||||||||||||||||||
Loss ratio(5)
|
| | | | 60.5% | | | | | | 59.9% | | | | | | 56.2% | | | | | | 63.3% | | | | | | 60.5% | | |
Expense ratio(6)
|
| | | | 33.5% | | | | | | 33.4% | | | | | | 35.0% | | | | | | 31.9% | | | | | | 34.1% | | |
Combined ratio(7)
|
| | | | 94.0% | | | | | | 93.3% | | | | | | 91.2% | | | | | | 95.2% | | | | | | 94.6% | | |
Other Data: | | | | | | | |||||||||||||||||||||||||
Tangible equity(8)
|
| | | $ | 459,679 | | | | | $ | 465,965 | | | | | $ | 478,937 | | | | | $ | 524,853 | | | | | $ | 485,907 | | |
Tangible equity per common share outstanding
|
| | | $ | 15.88 | | | | | $ | 16.33 | | | | | $ | 16.78 | | | | | $ | 18.03 | | | | | $ | 16.89 | | |
Debt to total capitalization ratio(9)
|
| | | | 22.0% | | | | | | 21.9% | | | | | | 18.8% | | | | | | 20.5% | | | | | | 21.4% | | |
Regulatory capital and
surplus(10) |
| | | $ | 601,436 | | | | | $ | 593,580 | | | | | $ | 580,267 | | | | | $ | 694,728 | | | | | $ | 586,480 | | |
Net written premiums to surplus ratio(11)
|
| | | | 0.8 | | | | | | 0.8 | | | | | | 0.6 | | | | | | 0.9 | | | | | | 0.9 | | |
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Year Ended December 31,
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2015
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2014
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2013
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Income
Before Taxes |
| |
Net
Income |
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Income
Before Taxes |
| |
Net
Income |
| |
Income
Before Taxes |
| |
Net
Income |
| ||||||||||||||||||
| | |
(in thousands)
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Income as reported
|
| | | $ | 59,776 | | | | | $ | 53,497 | | | | | $ | 45,624 | | | | | $ | 44,685 | | | | | $ | 77,078 | | | | | $ | 67,337 | | |
Net realized investment losses (gains)
|
| | | | 4,547 | | | | | | 4,090 | | | | | | 1,336 | | | | | | (890) | | | | | | (12,619) | | | | | | (9,427) | | |
Initial Public Offering costs
|
| | | | — | | | | | | — | | | | | | 14,930 | | | | | | 13,223 | | | | | | — | | | | | | — | | |
Other expenses
|
| | | | 730 | | | | | | 574 | | | | | | 1,082 | | | | | | 977 | | | | | | 677 | | | | | | 577 | | |
Dividend withholding taxes
|
| | | | — | | | | | | 2,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Interest expense on leased building the Company is deemed to own for accounting purposes
|
| | | | 661 | | | | | | 429 | | | | | | 659 | | | | | | 429 | | | | | | 663 | | | | | | 431 | | |
Net operating income
|
| | | $ | 65,714 | | | | | $ | 61,090 | | | | | $ | 63,631 | | | | | $ | 58,424 | | | | | $ | 65,799 | | | | | $ | 58,918 | | |
|
| | |
Nine Months Ended September 30,
|
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2016
|
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2015
|
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| | |
Income
Before Taxes |
| |
Net
Income |
| |
Income
Before Taxes |
| |
Net
Income |
| ||||||||||||
| | |
(in thousands)
|
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Income as reported
|
| | | $ | 52,205 | | | | | $ | 48,799 | | | | | $ | 45,049 | | | | | $ | 40,827 | | |
Net realized investment (gains) losses
|
| | | | (2,376) | | | | | | (1,508) | | | | | | 2,473 | | | | | | 1,946 | | |
Other expenses
|
| | | | 36 | | | | | | 91 | | | | | | 207 | | | | | | 135 | | |
Interest expense on leased building the Company is deemed to own for accounting purposes
|
| | | | 1,100 | | | | | | 715 | | | | | | 496 | | | | | | 322 | | |
Net operating income
|
| | | $ | 50,965 | | | | | $ | 48,097 | | | | | $ | 48,225 | | | | | $ | 43,230 | | |
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| | |
As of December 31,
|
| |
As of September 30,
|
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2015
|
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2014
|
| |
2013
|
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2016
|
| |
2015
|
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(in thousands)
|
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Shareholders’ equity
|
| | | $ | 681,038 | | | | | $ | 687,921 | | | | | $ | 701,490 | | | | | $ | 745,765 | | | | | $ | 707,416 | | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill
|
| | | | 181,831 | | | | | | 181,831 | | | | | | 181,831 | | | | | | 181,831 | | | | | | 181,831 | | |
Intangible assets
|
| | | | 39,528 | | | | | | 40,125 | | | | | | 40,722 | | | | | | 39,081 | | | | | | 39,678 | | |
Tangible equity
|
| | | $ | 459,679 | | | | | $ | 465,965 | | | | | $ | 478,937 | | | | | $ | 524,853 | | | | | $ | 485,907 | | |
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| | |
High
|
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Low
|
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Fiscal Year Ending December 31, 2016: | | | | ||||||||||
First Quarter
|
| | | $ | 34.24 | | | | | $ | 28.68 | | |
Second Quarter
|
| | | $ | 36.14 | | | | | $ | 25.86 | | |
Third Quarter
|
| | | $ | 38.31 | | | | | $ | 33.04 | | |
Fourth Quarter (through November 21, 2016)
|
| | | $ | 42.17 | | | | | $ | 35.25 | | |
Fiscal Year Ended December 31, 2015: | | | | ||||||||||
First quarter
|
| | | $ | 24.74 | | | | | $ | 20.61 | | |
Second quarter
|
| | | | 26.08 | | | | | | 21.91 | | |
Third quarter
|
| | | | 28.77 | | | | | | 24.63 | | |
Fourth quarter
|
| | | | 34.58 | | | | | | 26.23 | | |
Fiscal Year Ended December 31, 2014: | | | | ||||||||||
Fourth Quarter (beginning December 12, 2014)
|
| | | $ | 23.38 | | | | | $ | 20.46 | | |
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Shares Beneficially
Owned After the Offering |
| |||||||||||||||||||||
| | |
Shares Beneficially
Owned Prior to Offering |
| |
Shares to be Sold
in the Offering |
| |
Excluding Exercise of
Option to Purchase Additional Shares |
| |
Including Exercise of
Option to Purchase Additional Shares |
| ||||||||||||||||||||||||||||||||||||
Name
|
| |
Number
|
| |
Percent
|
| |
Excluding
Exercise of Option to Purchase Additional Shares |
| |
Including
Exercise of Option to Purchase Additional Shares |
| |
Number
|
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Percent
|
| |
Number
|
| |
Percent
|
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D. E. Shaw Affiliates
|
| | | | 14,047,238(1) | | | | | | 48.2% | | | | | | 3,000,000 | | | | | | 3,450,000 | | | | | | 11,047,238 | | | | | | 37.9% | | | | | | 10,597,238 | | | | | | 36.4% | | |
Underwriter
|
| |
Number of
Shares |
| |||
Morgan Stanley & Co. LLC
|
| | | | 3,000,000 | | |
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Common Shares
Beneficially Owned |
| |
Common
Shares that May be Offered for Resale |
| |
Common Shares Beneficially
Owned After the Sale of the Maximum Number of Common Shares |
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Selling Shareholder
|
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Number of
Shares |
| |
Percentage
of Common Shares Outstanding |
| |
Number of
Shares |
| |
Number of
Shares |
| |
Percentage of
Common Shares Outstanding |
| |||||||||||||||
The D. E. Shaw Affiliates(1)
|
| | | | 14,047,238 | | | | | | 48.5% | | | | | | 14,047,238 | | | | | | 0 | | | | | | — | | |