| | ||||||||||||||||
Title of Each Class of Securities to be Registered
|
| | |
Amount
To Be Registered(2) |
| | |
Maximum
Offering Price per Unit or Share |
| | |
Proposed
Maximum Aggregate Offering Price |
| | |
Amount of
Registration Fee(3) |
|
Common Shares, $0.0002 par value per share
|
| | |
6,497,500
|
| | |
$31.00
|
| | |
$201,422,500
|
| | |
$21,975.19
|
|
| | |
Per Share
|
| |
Total
|
| ||||||
Public offering price
|
| | | $ | 31.00000 | | | | | $ | 175,150,000.00 | | |
Underwriting discounts and commissions(1)
|
| | | $ | 1.43375 | | | | | $ | 8,100,687.50 | | |
Proceeds, before expenses, to us
|
| | | $ | 29.56625 | | | | | $ | 167,049,312.50 | | |
| Barclays | | |
Keefe, Bruyette & Woods
A Stifel Company |
|
| BMO Capital Markets | | |
KeyBanc Capital Markets
|
| |
Truist Securities
|
|
|
B. Riley Securities
|
| |
Compass Point
|
| |
Dowling & Partners Securities, LLC
|
| |
JMP Securities
|
|
| | | | | S-ii | | | |
| | | | | S-iii | | | |
| | | | | S-1 | | | |
| | | | | S-5 | | | |
| | | | | S-7 | | | |
| | | | | S-11 | | | |
| | | | | S-21 | | | |
| | | | | S-22 | | | |
| | | | | S-23 | | | |
| | | | | S-34 | | | |
| | | | | S-42 | | | |
| | | | | S-42 | | | |
| | | | | S-42 | | | |
| | | | | S-43 | | |
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| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 3 | | | |
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| | | | | 12 | | | |
| | | | | 12 | | | |
| | | | | 12 | | | |
| | | | | 12 | | | |
| | | | | 13 | | |
Gross Written Premiums by Segment
|
| |
Gross Written
Premiums Year Ended December 31, 2020 |
| |
% of Total
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Excess and Surplus Lines segment
|
| | | $ | 699,143 | | | | | | 55.6% | | |
Specialty Admitted Insurance segment
|
| | | | 408,691 | | | | | | 32.5% | | |
Casualty Reinsurance segment
|
| | | | 149,166 | | | | | | 11.9% | | |
| | | | $ | 1,257,000 | | | | | | 100.0% | | |
Gross Written Premiums by Market | | | | | | | | | | | | | |
Non-admitted markets
|
| | | $ | 882,770 | | | | | | 70.2% | | |
Admitted markets
|
| | | | 374,230 | | | | | | 29.8% | | |
| | | | $ | 1,257,000 | | | | | | 100.0% | | |
Gross Written Premiums by Segment
|
| |
Gross Written
Premiums Three Months Ended March 31, 2021 |
| |
% of Total
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Excess and Surplus Lines segment
|
| | | $ | 181,358 | | | | | | 48.6% | | |
Specialty Admitted Insurance segment
|
| | | | 127,036 | | | | | | 34.0% | | |
Casualty Reinsurance segment
|
| | | | 64,861 | | | | | | 17.4% | | |
| | | | $ | 373,255 | | | | | | 100.0% | | |
Gross Written Premiums by Market | | | | | | | | | | | | | |
Non-admitted markets
|
| | | $ | 256,749 | | | | | | 68.8% | | |
Admitted markets
|
| | | | 116,506 | | | | | | 31.2% | | |
| | | | $ | 373,255 | | | | | | 100.0% | | |
| | |
Three Months Ended
March 31, 2021 |
| |
Accident Loss
Ratio plus Expense Ratio |
| ||||||||||||
| | |
Accident Year
Loss Ratio |
| |
Expense Ratio
|
| ||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||
Excess and Surplus Lines
|
| | | | 64.3% | | | | | | 20.1% | | | | | | 84.4% | | |
Specialty Admitted Insurance
|
| | | | 71.8% | | | | | | 26.6% | | | | | | 98.4% | | |
Casualty Reinsurance
|
| | | | 60.7% | | | | | | 36.5% | | | | | | 97.2% | | |
| | |
Three Months Ended
March 31, 2020 |
| |
Accident Loss
Ratio plus Expense Ratio |
| ||||||||||||
| | |
Accident Year
Loss Ratio |
| |
Expense Ratio
|
| ||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||
Excess and Surplus Lines
|
| | | | 65.7% | | | | | | 26.2% | | | | | | 91.9% | | |
Specialty Admitted Insurance
|
| | | | 82.2% | | | | | | 32.8% | | | | | | 115.0% | | |
Casualty Reinsurance
|
| | | | 59.4% | | | | | | 34.3% | | | | | | 93.7% | | |
| | |
At or for the
Year Ended December 31, |
| |
At or for the
Three Months Ended March 31, |
| ||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2021
|
| |
2020
|
| |||||||||||||||
| | |
($ in thousands, except for per share data)
|
| |||||||||||||||||||||||||||
Operating Results: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross written premiums(1)
|
| | | $ | 1,257,000 | | | | | $ | 1,470,735 | | | | | $ | 1,166,773 | | | | | $ | 373,255 | | | | | $ | 283,841 | | |
Ceded written premiums(2)
|
| | | | (609,226) | | | | | | (574,585) | | | | | | (404,101) | | | | | | (198,656) | | | | | | (149,187) | | |
Net written premiums
|
| | | $ | 647,774 | | | | | $ | 896,150 | | | | | $ | 762,672 | | | | | $ | 174,599 | | | | | $ | 134,654 | | |
Net earned premiums
|
| | | $ | 606,806 | | | | | $ | 823,746 | | | | | $ | 815,398 | | | | | $ | 160,593 | | | | | $ | 145,918 | | |
Net investment income
|
| | | | 73,368 | | | | | | 75,652 | | | | | | 61,256 | | | | | | 15,089 | | | | | | 20,836 | | |
Net realized and unrealized (losses) gains on investments
|
| | | | (16,030) | | | | | | (2,919) | | | | | | (5,479) | | | | | | 6,272 | | | | | | (58,407) | | |
Other income
|
| | | | 4,545 | | | | | | 10,646 | | | | | | 14,424 | | | | | | 1,026 | | | | | | 1,937 | | |
Total revenues
|
| | | | 668,689 | | | | | | 907,125 | | | | | | 885,599 | | | | | | 182,980 | | | | | | 110,284 | | |
Losses and loss adjustment expenses
|
| | | | 478,545 | | | | | | 672,102 | | | | | | 600,276 | | | | | | 273,500 | | | | | | 96,856 | | |
Other operating expenses
|
| | | | 165,498 | | | | | | 170,908 | | | | | | 201,035 | | | | | | 47,381 | | | | | | 51,621 | | |
Other expenses
|
| | | | 2,138 | | | | | | 1,055 | | | | | | 1,300 | | | | | | 621 | | | | | | — | | |
Interest expense
|
| | | | 10,033 | | | | | | 10,596 | | | | | | 11,553 | | | | | | 2,216 | | | | | | 2,876 | | |
Amortization of intangible assets
|
| | | | 538 | | | | | | 597 | | | | | | 597 | | | | | | 91 | | | | | | 149 | | |
Total expenses
|
| | | | 656,752 | | | | | | 855,258 | | | | | | 814,761 | | | | | | 323,809 | | | | | | 151,502 | | |
Income (loss) before taxes
|
| | | | 11,937 | | | | | | 51,867 | | | | | | 70,838 | | | | | | (140,829) | | | | | | (41,218) | | |
Income tax expense (benefit)
|
| | | | 7,113 | | | | | | 13,528 | | | | | | 7,008 | | | | | | (37,369) | | | | | | (4,403) | | |
Net income (loss)
|
| | | $ | 4,824 | | | | | $ | 38,339 | | | | | $ | 63,830 | | | | | $ | (103,460) | | | | | $ | (36,815) | | |
Adjusted net operating income (loss)(4)
|
| | | $ | 21,218 | | | | | $ | 42,934 | | | | | $ | 70,596 | | | | | $ | (108,795) | | | | | $ | 15,418 | | |
Per share data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings (loss) per share
|
| | | $ | 0.16 | | | | | $ | 1.27 | | | | | $ | 2.14 | | | | | $ | (3.37) | | | | | $ | (1.21) | | |
Diluted earnings (loss) per share
|
| | | $ | 0.16 | | | | | $ | 1.25 | | | | | $ | 2.11 | | | | | $ | (3.37) | | | | | $ | (1.21) | | |
Dividends declared per share
|
| | | $ | 1.20 | | | | | $ | 1.20 | | | | | $ | 1.20 | | | | | $ | 0.30 | | | | | $ | 0.30 | | |
Weighted-average shares outstanding—diluted
|
| | | | 30,884,416 | | | | | | 30,673,924 | | | | | | 30,307,101 | | | | | | 30,713,986 | | | | | | 30,476,307 | | |
| | |
At or for the
Year Ended December 31, |
| |
At or for the Three
Months Ended March 31, |
| ||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2021
|
| |
2020
|
| |||||||||||||||
| | |
($ in thousands, except for per share amounts and ratios)
|
| |||||||||||||||||||||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and invested assets(10)
|
| | | $ | 2,359,318 | | | | | $ | 2,200,272 | | | | | $ | 1,850,303 | | | | | $ | 2,342,460 | | | | | $ | 2,254,865 | | |
Reinsurance recoverables
|
| | | | 851,802 | | | | | | 701,266 | | | | | | 485,715 | | | | | | 921,298 | | | | | | 733,870 | | |
Goodwill and intangible assets
|
| | | | 218,233 | | | | | | 218,771 | | | | | | 219,368 | | | | | | 218,142 | | | | | | 218,622 | | |
Total assets
|
| | | | 5,063,072 | | | | | | 5,024,405 | | | | | | 3,136,776 | | | | | | 5,109,707 | | | | | | 4,996,810 | | |
Reserve for losses and loss adjustment expenses
|
| | | | 2,192,080 | | | | | | 2,045,506 | | | | | | 1,661,459 | | | | | | 2,413,846 | | | | | | 2,043,358 | | |
Unearned premiums
|
| | | | 630,371 | | | | | | 524,377 | | | | | | 386,473 | | | | | | 674,343 | | | | | | 539,564 | | |
Senior debt
|
| | | | 262,300 | | | | | | 158,300 | | | | | | 118,300 | | | | | | 262,300 | | | | | | 277,300 | | |
Junior subordinated debt
|
| | | | 104,055 | | | | | | 104,055 | | | | | | 104,055 | | | | | | 104,055 | | | | | | 104,055 | | |
Total liabilities
|
| | | | 4,267,464 | | | | | | 4,245,824 | | | | | | 2,427,535 | | | | | | 4,470,079 | | | | | | 4,276,493 | | |
Total shareholders’ equity
|
| | | | 795,608 | | | | | | 778,581 | | | | | | 709,241 | | | | | | 639,628 | | | | | | 720,317 | | |
GAAP Underwriting Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss ratio(5)
|
| | | | 78.9% | | | | | | 81.6% | | | | | | 73.6% | | | | | | 170.3% | | | | | | 66.4% | | |
Expense ratio(6)
|
| | | | 26.7% | | | | | | 19.6% | | | | | | 23.0% | | | | | | 28.9% | | | | | | 34.2% | | |
Combined ratio(7)
|
| | | | 105.6% | | | | | | 101.2% | | | | | | 96.6% | | | | | | 199.2% | | | | | | 100.6% | | |
Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tangible equity(8)
|
| | | $ | 577,375 | | | | | $ | 559,810 | | | | | $ | 489,873 | | | | | $ | 421,486 | | | | | $ | 501,695 | | |
Tangible equity per common share outstanding
|
| | | $ | 18.84 | | | | | $ | 18.40 | | | | | $ | 16.34 | | | | | $ | 13.70 | | | | | $ | 16.44 | | |
Leverage ratio(9)
|
| | | | 30.4% | | | | | | 20.0% | | | | | | 16.2% | | | | | | 35.0% | | | | | | 32.4% | | |
Net written premiums to shareholders’
equity(3) |
| | | | 0.8x | | | | | | 1.2x | | | | | | 1.1x | | | | | | 1.1x | | | | | | 0.7x | | |
| | |
Year Ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||||||||||||||
| | |
Income
Before Taxes |
| |
Net Income
|
| |
Income
Before Taxes |
| |
Net
Income |
| |
Income
Before Taxes |
| |
Net
Income |
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
Income as reported
|
| | | $ | 11,937 | | | | | $ | 4,824 | | | | | $ | 51,867 | | | | | $ | 38,339 | | | | | $ | 70,838 | | | | | $ | 63,830 | | |
Net realized and unrealized losses on investments
|
| | | | 16,030 | | | | | | 14,840 | | | | | | 2,919 | | | | | | 3,761 | | | | | | 5,479 | | | | | | 4,374 | | |
Other expenses
|
| | | | 1,967 | | | | | | 1,554 | | | | | | 1,055 | | | | | | 834 | | | | | | 1,100 | | | | | | 941 | | |
Impairment of intangible assets
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 200 | | | | | | 200 | | |
Interest expense on leased building the Company was previously deemed to own for accounting purposes
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,584 | | | | | | 1,251 | | |
Adjusted net operating income
|
| | | $ | 29,934 | | | | | $ | 21,218 | | | | | $ | 55,841 | | | | | $ | 42,934 | | | | | $ | 79,201 | | | | | $ | 70,596 | | |
| | |
Three Months Ended March 31,
|
| |||||||||||||||||||||
| | |
2021
|
| |
2020
|
| ||||||||||||||||||
| | |
Loss
Before Taxes |
| |
Net
Loss |
| |
(Loss) Income
Before Taxes |
| |
Net (Loss) Income
|
| ||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||
Loss as reported
|
| | | $ | (140,829) | | | | | $ | (103,460) | | | | | $ | (41,218) | | | | | $ | (36,815) | | |
Net realized and unrealized investment (gains) losses
|
| | | | (6,272) | | | | | | (5,751) | | | | | | 58,407 | | | | | | 52,233 | | |
Other expenses
|
| | | | 527 | | | | | | 416 | | | | | | — | | | | | | — | | |
Adjusted net operating (loss) income
|
| | | $ | (146,574) | | | | | $ | (108,795) | | | | | $ | 17,189 | | | | | $ | 15,418 | | |
| | |
As of December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||||||||||||||
| | |
Equity
|
| |
Equity
per share |
| |
Equity
|
| |
Equity
per share |
| |
Equity
|
| |
Equity
per share |
| ||||||||||||||||||
| | |
(in thousands, except per share amounts)
|
| |||||||||||||||||||||||||||||||||
Shareholders’ equity
|
| | | $ | 795,608 | | | | | $ | 25.96 | | | | | $ | 778,581 | | | | | $ | 25.59 | | | | | $ | 709,241 | | | | | $ | 23.65 | | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill
|
| | | | 181,831 | | | | | | 5.93 | | | | | | 181,831 | | | | | | 5.98 | | | | | | 181,831 | | | | | | 6.06 | | |
Intangible assets, net
|
| | | | 36,402 | | | | | | 1.19 | | | | | | 36,940 | | | | | | 1.21 | | | | | | 37,537 | | | | | | 1.25 | | |
Tangible equity
|
| | | $ | 577,375 | | | | | $ | 18.84 | | | | | $ | 559,810 | | | | | $ | 18.40 | | | | | $ | 489,873 | | | | | $ | 16.34 | | |
Dividends to shareholders for the year ended December 31, 2020
|
| | | | 37,091 | | | | | | 1.20 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pre-dividend tangible equity
|
| | | $ | 614,466 | | | | | $ | 20.04 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
March 31, 2021
|
| |
March 31, 2020
|
| ||||||||||||||||||
| | |
Equity
|
| |
Equity per
Share |
| |
Equity
|
| |
Equity per
Share |
| ||||||||||||
| | |
($ in thousands, except share amounts)
|
| |||||||||||||||||||||
Shareholders’ equity
|
| | | $ | 639,628 | | | | | $ | 20.78 | | | | | $ | 720,317 | | | | | $ | 23.60 | | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill
|
| | | | 181,831 | | | | | | 5.90 | | | | | | 181,831 | | | | | | 5.96 | | |
Intangible assets, net
|
| | | | 36,311 | | | | | | 1.18 | | | | | | 36,791 | | | | | | 1.20 | | |
Tangible equity
|
| | | $ | 421,486 | | | | | $ | 13.70 | | | | | $ | 501,695 | | | | | $ | 16.44 | | |
Dividends to shareholders for the three months ended March 31, 2021
|
| | | | 9,343 | | | | | | 0.30 | | | | | | | | | | | | | | |
Pre-dividend tangible equity
|
| | | $ | 430,829 | | | | | $ | 14.00 | | | | | | | | | | | | | | |
Name
|
| |
Number of
Shares |
| |||
Barclays Capital Inc.
|
| | | | 1,977,500 | | |
Keefe, Bruyette & Woods, Inc.
|
| | | | 1,977,500 | | |
BMO Capital Markets Corp.
|
| | | | 480,250 | | |
KeyBanc Capital Markets Inc.
|
| | | | 437,875 | | |
Truist Securities, Inc.
|
| | | | 381,375 | | |
B. Riley Securities, Inc.
|
| | | | 98,875 | | |
Compass Point Research & Trading, LLC
|
| | | | 98,875 | | |
Dowling & Partners Securities LLC
|
| | | | 98,875 | | |
JMP Securities LLC
|
| | | | 98,875 | | |
Total
|
| | | | 5,650,000 | | |
| | |
No exercise
|
| |
Full
exercise |
| ||||||
Per Share
|
| | | $ | 1.43375 | | | | | $ | 1.43375 | | |
Total
|
| | | $ | 8,100,687.50 | | | | | $ | 9,315,790.63 | | |
| | | | | ii | | | |
| | | | | 1 | | | |
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| | | | | 13 | | |
|
Barclays
|
|
|
Keefe, Bruyette & Woods
A Stifel Company
|
|