We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
National General Holdings Corporation | NASDAQ:NGHC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 34.18 | 31.39 | 34.21 | 0 | 01:00:00 |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 27-1046208 | |||||||
(State or Other Jurisdiction of
Incorporation or Organization) |
(I.R.S. Employer
Identification No.) |
Title of Each Class |
Trading
Symbol(s) |
Name of Each Exchange on Which Registered | ||||||||||||
Common Stock, par value $0.01 per share | NGHC | The Nasdaq Stock Market LLC | ||||||||||||
7.50% Non-Cumulative Preferred Stock, Series A | NGHCP | The Nasdaq Stock Market LLC | ||||||||||||
Depositary Shares, Representing 1/40th of a Share of 7.50% Non-Cumulative Preferred Stock, Series B | NGHCO | The Nasdaq Stock Market LLC | ||||||||||||
Depositary Shares, Representing 1/40th of a Share of 7.50% Non-Cumulative Preferred Stock, Series C | NGHCN | The Nasdaq Stock Market LLC | ||||||||||||
7.625% Subordinated Notes due 2055 | NGHCZ | The Nasdaq Stock Market LLC |
Large Accelerated Filer
|
☒
|
Accelerated Filer
|
☐
|
|||||||||||||||||
Non-Accelerated Filer
|
☐
|
Smaller Reporting Company
|
☐
|
|||||||||||||||||
Emerging Growth Company
|
☐
|
Page | ||||||||
September 30, | December 31, | ||||||||||
2020 | 2019 | ||||||||||
ASSETS | |||||||||||
Investments: | |||||||||||
Debt securities, available-for-sale, at fair value (allowance for expected credit losses $1,085 - 2020) (Exchanges - $300,124 and $324,249; allowance for expected credit losses $150 - 2020)
|
$ | 4,549,133 | $ | 4,476,358 | |||||||
Short-term investments (Exchanges - $30,952 and $5,245)
|
510,800 | 67,353 | |||||||||
Other investments (related parties - $231,593 and $238,841)
|
282,866 | 311,287 | |||||||||
Total investments | 5,342,799 | 4,854,998 | |||||||||
Cash and cash equivalents (Exchanges - $416 and $959)
|
188,282 | 135,942 | |||||||||
Restricted cash and cash equivalents (Exchanges - $325 and $24)
|
63,061 | 28,521 | |||||||||
Accrued investment income (related parties - $1,210 and $2,391)
(Exchanges - $1,397 and $2,001)
|
26,135 | 30,927 | |||||||||
Premiums and other receivables (net of allowance for expected credit losses $37,163 - 2020; net of bad debt allowance $24,067 - 2019) (Exchanges - $70,076 and $55,859; net of allowance for expected credit losses $844 - 2020; net of bad debt allowance $541 - 2019)
|
1,598,316 | 1,428,948 | |||||||||
Deferred acquisition costs (Exchanges - $18,507 and $23,307)
|
284,963 | 263,523 | |||||||||
Reinsurance recoverable (net of allowance for expected credit losses $810 - 2020) (Exchanges - $125,095 and $119,125; net of allowance for expected credit losses $173 - 2020)
|
1,286,852 | 1,394,308 | |||||||||
Prepaid reinsurance premiums (Exchanges - $105,597 and $105,894)
|
458,960 | 575,747 | |||||||||
Property and equipment, net (Exchanges - $0 and $241)
|
382,696 | 403,827 | |||||||||
Intangible assets, net (Exchanges - $3,090 and $3,225)
|
345,974 | 365,823 | |||||||||
Goodwill | 179,328 | 179,328 | |||||||||
Prepaid and other assets (Exchanges - $4,312 and $3,521)
|
66,890 | 94,642 | |||||||||
Total assets | $ | 10,224,256 | $ | 9,756,534 | |||||||
NATIONAL GENERAL HOLDINGS CORP. | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(In Thousands, Except Shares and Par Value per Share) | |||||||||||
(Unaudited) | |||||||||||
September 30, | December 31, | ||||||||||
2020 | 2019 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Liabilities: | |||||||||||
Unpaid loss and loss adjustment expense reserves (Exchanges - $208,496 and $205,786)
|
$ | 2,897,465 | $ | 2,886,414 | |||||||
Unearned premiums and other revenue (Exchanges - $219,582 and $252,553)
|
2,337,469 | 2,312,241 | |||||||||
Reinsurance payable (Exchanges - $51,711 and $35,689)
|
402,428 | 562,844 | |||||||||
Accounts payable and accrued expenses (Exchanges - $7,604 and $8,497)
|
420,144 | 315,366 | |||||||||
Debt | 679,436 | 686,006 | |||||||||
Other liabilities (Exchanges - $44,004 and $30,803)
|
401,749 | 376,169 | |||||||||
Total liabilities | $ | 7,138,691 | $ | 7,139,040 | |||||||
Contingencies (Note 10)
|
|||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.01 par value - authorized 10,000,000 shares, issued and outstanding 2,565,120 shares - 2020 and 2019; Aggregate liquidation preference $450,000 - 2020 and 2019
|
$ | 450,000 | $ | 450,000 | |||||||
Common stock, $0.01 par value - authorized 150,000,000 shares, issued 113,934,259 and 113,368,811 shares - 2020 and 2019, outstanding 113,475,176 and 113,368,811 shares - 2020 and 2019
|
1,139 | 1,134 | |||||||||
Treasury stock, at cost - 459,083 shares - 2020
|
(8,482) | — | |||||||||
Additional paid-in capital | 1,073,288 | 1,065,634 | |||||||||
Accumulated other comprehensive income: | |||||||||||
Unrealized foreign currency translation adjustment, net of tax | (637) | (202) | |||||||||
Unrealized gain on investments, net of tax | 195,590 | 74,750 | |||||||||
Total accumulated other comprehensive income | 194,953 | 74,548 | |||||||||
Retained earnings | 1,392,872 | 1,058,138 | |||||||||
Total National General Holdings Corp. stockholders’ equity | 3,103,770 | 2,649,454 | |||||||||
Noncontrolling interest | (18,205) | (31,960) | |||||||||
Total stockholders’ equity | $ | 3,085,565 | $ | 2,617,494 | |||||||
Total liabilities and stockholders’ equity | $ | 10,224,256 | $ | 9,756,534 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Net earned premium | $ | 1,178,573 | $ | 1,053,638 | $ | 3,319,346 | $ | 3,048,446 | |||||||||||||||
Ceding commission income | 30,724 | 57,587 | 127,669 | 187,313 | |||||||||||||||||||
Service and fee income | 184,969 | 161,626 | 545,002 | 476,041 | |||||||||||||||||||
Net investment income | 28,904 | 33,740 | 90,322 | 102,316 | |||||||||||||||||||
Net gain (loss) on investments | 19,839 | 1,581 | 18,136 | (3,627) | |||||||||||||||||||
Total revenues | 1,443,009 | 1,308,172 | 4,100,475 | 3,810,489 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Loss and loss adjustment expense | 774,164 | 745,334 | 2,066,608 | 2,112,678 | |||||||||||||||||||
Acquisition costs and other underwriting expenses | 268,645 | 209,090 | 726,265 | 615,134 | |||||||||||||||||||
General and administrative expenses | 244,611 | 263,864 | 774,589 | 759,725 | |||||||||||||||||||
Interest expense | 11,292 | 12,898 | 34,851 | 38,822 | |||||||||||||||||||
Total expenses | 1,298,712 | 1,231,186 | 3,602,313 | 3,526,359 | |||||||||||||||||||
Income before provision for income taxes
|
144,297 | 76,986 | 498,162 | 284,130 | |||||||||||||||||||
Provision for income taxes | 27,428 | 16,747 | 106,107 | 61,494 | |||||||||||||||||||
Net income | 116,869 | 60,239 | 392,055 | 222,636 | |||||||||||||||||||
Net (income) loss attributable to noncontrolling interest | (6,900) | 10,915 | (14,753) | 18,152 | |||||||||||||||||||
Net income attributable to NGHC | 109,969 | 71,154 | 377,302 | 240,788 | |||||||||||||||||||
Dividends on preferred stock
|
(7,875) | (7,875) | (24,675) | (24,675) | |||||||||||||||||||
Net income attributable to NGHC common stockholders | $ | 102,094 | $ | 63,279 | $ | 352,627 | $ | 216,113 | |||||||||||||||
Earnings Per Share (“EPS”) attributable to NGHC common stockholders: | |||||||||||||||||||||||
Basic EPS | $ | 0.90 | $ | 0.56 | $ | 3.11 | $ | 1.91 | |||||||||||||||
Diluted EPS | $ | 0.88 | $ | 0.54 | $ | 3.04 | $ | 1.87 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net income | $ | 116,869 | $ | 60,239 | $ | 392,055 | $ | 222,636 | |||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Foreign currency translation adjustment | 62 | (4,104) | (550) | (8,147) | |||||||||||||||||||
Income tax effect | (13) | 862 | 115 | 1,707 | |||||||||||||||||||
Total foreign currency translation adjustment, net of tax | 49 | (3,242) | (435) | (6,440) | |||||||||||||||||||
Gross unrealized gain on investments before reclassifications | 17,347 | 33,294 | 173,235 | 190,266 | |||||||||||||||||||
Income tax effect | (3,644) | (6,991) | (36,380) | (39,955) | |||||||||||||||||||
Total change in net unrealized gain on investments, net of tax | 13,703 | 26,303 | 136,855 | 150,311 | |||||||||||||||||||
Reclassification adjustments for investments gain or loss to net income: | |||||||||||||||||||||||
Net realized gain on investments | (19,393) | (1,886) | (21,350) | (1,835) | |||||||||||||||||||
Income tax effect | 4,073 | 396 | 4,484 | 385 | |||||||||||||||||||
Total gain on investments reclassifications to net income, net of tax | (15,320) | (1,490) | (16,866) | (1,450) | |||||||||||||||||||
Other comprehensive income (loss) before income tax effect | (1,984) | 27,304 | 151,335 | 180,284 | |||||||||||||||||||
Income tax effect | 416 | (5,733) | (31,781) | (37,863) | |||||||||||||||||||
Other comprehensive income (loss), net of tax | (1,568) | 21,571 | 119,554 | 142,421 | |||||||||||||||||||
Comprehensive income | 115,301 | 81,810 | 511,609 | 365,057 | |||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 2,757 | 9,821 | (13,902) | 8,248 | |||||||||||||||||||
Comprehensive income attributable to NGHC | $ | 118,058 | $ | 91,631 | $ | 497,707 | $ | 373,305 |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Noncontrolling Interest | Total | ||||||||||||||||||||||||||||||||||||||||
Balance July 1, 2020 | $ | 450,000 | $ | 1,139 | $ | (8,482) | $ | 1,069,152 | $ | 186,864 | $ | 1,296,451 | $ | (15,448) | $ | 2,979,676 | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 109,969 | 6,900 | 116,869 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | 48 | — | — | 48 | |||||||||||||||||||||||||||||||||||||||
Change in unrealized gain (loss) on investments, net of tax | — | — | — | — | 8,041 | — | (9,657) | (1,616) | |||||||||||||||||||||||||||||||||||||||
Common stock dividends declared | — | — | — | — | — | (5,673) | — | (5,673) | |||||||||||||||||||||||||||||||||||||||
Preferred stock dividends declared | — | — | — | — | — | (7,875) | — | (7,875) | |||||||||||||||||||||||||||||||||||||||
Common stock issued under employee stock plans and exercises of stock options | — | — | — | 1,134 | — | — | — | 1,134 | |||||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement | — | — | — | (156) | — | — | — | (156) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | 3,158 | — | — | — | 3,158 | |||||||||||||||||||||||||||||||||||||||
Balance September 30, 2020 | $ | 450,000 | $ | 1,139 | $ | (8,482) | $ | 1,073,288 | $ | 194,953 | $ | 1,392,872 | $ | (18,205) | $ | 3,085,565 |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Noncontrolling Interest | Total | |||||||||||||||||||||||||||||||||||||||||
Balance July 1, 2019 | $ | 450,000 | $ | 1,132 | $ | 1,060,379 | $ | 59,910 | $ | 907,841 | $ | (18,394) | $ | 2,460,868 | |||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | 71,154 | (10,915) | 60,239 | ||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | (3,242) | — | — | (3,242) | ||||||||||||||||||||||||||||||||||||||||
Change in unrealized gain on investments, net of tax | — | — | — | 23,719 | — | 1,094 | 24,813 | ||||||||||||||||||||||||||||||||||||||||
Common stock dividends declared | — | — | — | — | (5,665) | — | (5,665) | ||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends declared | — | — | — | — | (7,875) | — | (7,875) | ||||||||||||||||||||||||||||||||||||||||
Common stock issued under employee stock plans and exercises of stock options | — | 1 | 188 | — | — | — | 189 | ||||||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement | — | — | (493) | — | — | — | (493) | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,785 | — | — | — | 2,785 | ||||||||||||||||||||||||||||||||||||||||
Balance September 30, 2019 | $ | 450,000 | $ | 1,133 | $ | 1,062,859 | $ | 80,387 | $ | 965,455 | $ | (28,215) | $ | 2,531,619 |
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Noncontrolling Interest | Total | ||||||||||||||||||||||||||||||||||||||||
Balance January 1, 2020 | $ | 450,000 | $ | 1,134 | $ | — | $ | 1,065,634 | $ | 74,548 | $ | 1,058,138 | $ | (31,960) | $ | 2,617,494 | |||||||||||||||||||||||||||||||
Cumulative-effect adjustment of change in accounting principle, net of tax | — | — | — | — | — | (863) | (147) | (1,010) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 377,302 | 14,753 | 392,055 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | (436) | — | — | (436) | |||||||||||||||||||||||||||||||||||||||
Change in unrealized gain (loss) on investments, net of tax | — | — | — | — | 120,841 | — | (851) | 119,990 | |||||||||||||||||||||||||||||||||||||||
Common stock repurchased | — | — | (8,482) | — | — | — | — | (8,482) | |||||||||||||||||||||||||||||||||||||||
Common stock dividends declared | — | — | — | — | — | (17,030) | — | (17,030) | |||||||||||||||||||||||||||||||||||||||
Preferred stock dividends declared | — | — | — | — | — | (24,675) | — | (24,675) | |||||||||||||||||||||||||||||||||||||||
Common stock issued under employee stock plans and exercises of stock options | — | 5 | — | 1,965 | — | — | — | 1,970 | |||||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement | — | — | — | (3,647) | — | — | — | (3,647) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | 9,336 | — | — | — | 9,336 | |||||||||||||||||||||||||||||||||||||||
Balance September 30, 2020 | $ | 450,000 | $ | 1,139 | $ | (8,482) | $ | 1,073,288 | $ | 194,953 | $ | 1,392,872 | $ | (18,205) | $ | 3,085,565 |
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interest | Total | |||||||||||||||||||||||||||||||||||
Balance January 1, 2019 | $ | 450,000 | $ | 1,129 | $ | 1,057,783 | $ | (52,130) | $ | 764,056 | $ | (19,967) | $ | 2,200,871 | |||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | 240,788 | (18,152) | 222,636 | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | (6,440) | — | — | (6,440) | ||||||||||||||||||||||||||||||||||
Change in unrealized gain on investments, net of tax | — | — | — | 138,957 | — | 9,904 | 148,861 | ||||||||||||||||||||||||||||||||||
Common stock dividends declared | — | — | — | — | (14,714) | — | (14,714) | ||||||||||||||||||||||||||||||||||
Preferred stock dividends declared | — | — | — | — | (24,675) | — | (24,675) | ||||||||||||||||||||||||||||||||||
Common stock issued under employee stock plans and exercises of stock options | — | 4 | 432 | — | — | — | 436 | ||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement | — | — | (3,633) | — | — | — | (3,633) | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 8,277 | — | — | — | 8,277 | ||||||||||||||||||||||||||||||||||
Balance September 30, 2019 | $ | 450,000 | $ | 1,133 | $ | 1,062,859 | $ | 80,387 | $ | 965,455 | $ | (28,215) | $ | 2,531,619 |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | 392,055 | $ | 222,636 | ||||||||||
Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||||||||||||||
Net (gain) loss on investments | (18,136) | 3,627 | ||||||||||||
Credit loss expense | 71,166 | 61,334 | ||||||||||||
Depreciation and amortization | 60,760 | 87,055 | ||||||||||||
Stock-based compensation expense | 9,336 | 8,277 | ||||||||||||
Other, net | 16,971 | (1,013) | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||
Accrued investment income | 3,237 | (195) | ||||||||||||
Premiums and other receivables | (223,944) | (172,034) | ||||||||||||
Deferred acquisition costs | (21,440) | (17,397) | ||||||||||||
Reinsurance recoverable | 106,646 | 118,763 | ||||||||||||
Prepaid reinsurance premiums | 116,786 | 29,372 | ||||||||||||
Prepaid expenses and other assets | 28,021 | 81,324 | ||||||||||||
Unpaid loss and loss adjustment expense reserves | 11,050 | (14,165) | ||||||||||||
Unearned premiums and other revenue | 25,228 | 93,853 | ||||||||||||
Reinsurance payable | (160,416) | 16,361 | ||||||||||||
Accounts payable and accrued expenses | 38,673 | (578) | ||||||||||||
Other liabilities | (4,673) | (7,766) | ||||||||||||
Net cash provided by operating activities | 451,320 | 509,454 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchases of: | ||||||||||||||
Debt securities, available-for-sale | (661,632) | (863,050) | ||||||||||||
Short-term investments | (1,647,160) | (2,328,055) | ||||||||||||
Other investments | (2,579) | (4,554) | ||||||||||||
Property and equipment | (25,833) | (84,285) | ||||||||||||
Proceeds from: | ||||||||||||||
Sale of debt securities, available-for-sale | 348,249 | 273,561 | ||||||||||||
Maturity of debt securities, available-for-sale | 456,990 | 244,609 | ||||||||||||
Sale of short-term investments | 1,206,569 | 2,293,700 | ||||||||||||
Sale and return of other investments | 24,597 | 13,339 | ||||||||||||
Other investing activities | (700) | 16,128 | ||||||||||||
Net cash used in investing activities | $ | (301,499) | $ | (438,607) | ||||||||||
NATIONAL GENERAL HOLDINGS CORP. | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
(In Thousands) | ||||||||||||||
(Unaudited) | ||||||||||||||
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Cash flows from financing activities: | ||||||||||||||
Common stock repurchased | $ | (8,482) | $ | — | ||||||||||
Repayments of debt and principal payments under capital leases obligations | (10,032) | (29,826) | ||||||||||||
Issuance of common stock — employee share options | 1,970 | 436 | ||||||||||||
Taxes paid related to net share settlement of equity awards | (3,647) | (3,633) | ||||||||||||
Dividends paid to common shareholders | (17,025) | (13,573) | ||||||||||||
Dividends paid to preferred shareholders | (25,725) | (25,667) | ||||||||||||
Other financing activities | — | (1,726) | ||||||||||||
Net cash used in financing activities | (62,941) | (73,989) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (3,119) | ||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 86,880 | (6,261) | ||||||||||||
Cash, cash equivalents, and restricted cash at beginning of the period | 164,463 | 233,583 | ||||||||||||
Cash, cash equivalents, and restricted cash at end of the period | $ | 251,343 | $ | 227,322 | ||||||||||
Supplemental disclosures of non-cash financing activities: | ||||||||||||||
Accrued common stock dividends | $ | 5,673 | $ | 5,664 | ||||||||||
Accrued preferred stock dividends | 7,875 | 7,875 |
Standard | Description | Date of Adoption | Effect on the Company | |||||||||||||||||
ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and related amendments. | This standard changed the impairment model to a new forward-looking expected loss model for most financial assets and certain other instruments. The standard requires immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which generally results in earlier recognition of allowances for credit losses on loans and other financial instruments. Many of the loss estimation techniques applied prior the adoption of the standard are still permitted, although the inputs to those techniques changed to reflect the full amount of expected credit losses. The Company continues to use judgement to determine which loss estimation method is appropriate for its circumstances. The standard became effective for interim and annual reporting periods beginning after December 15, 2019 and requires using a modified retrospective approach, recognizing a cumulative-effect adjustment as of the beginning of the first reporting period in which the standard is effective. | January 1, 2020 |
The Company adopted ASU 2016-13 using the modified retrospective approach and recorded a cumulative-effect adjustment, net of tax of $1,010 to the opening balance of retained earnings and increased the allowance for premiums receivable, reinsurance recoverable and deferred taxes by the same amount.
|
|||||||||||||||||
ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. | This standard established a one-step process for testing the value of the goodwill which an entity carries. ASU 2017-04 requires the goodwill impairment to be measured as the excess of the reporting unit’s carrying amount over its fair value. | January 1, 2020 | The adoption of ASU 2017-04 did not have a material impact on the Company’s condensed consolidated financial statements. |
Three Months Ended September 30, 2020 | |||||||||||
Premiums and Other Receivables, Net | Allowance for Expected Credit Losses | ||||||||||
Balance, beginning of the period | $ | 1,487,734 | $ | 40,078 | |||||||
Current period change for expected credit losses (1)
|
13,931 | ||||||||||
Write-offs of uncollectible premiums and other receivables | (16,846) | ||||||||||
Balance, end of the period | $ | 1,598,316 | $ | 37,163 |
Nine Months Ended September 30, 2020 | |||||||||||
Premiums and Other Receivables, Net | Allowance for Expected Credit Losses | ||||||||||
Balance, beginning of the period | $ | 1,428,948 | $ | 24,067 | |||||||
Cumulative effect of adoption of updated accounting guidance for credit losses at January 1, 2020 | 762 | ||||||||||
Current period change for expected credit losses (1)
|
70,873 | ||||||||||
Write-offs of uncollectible premiums and other receivables | (58,539) | ||||||||||
Balance, end of the period | $ | 1,598,316 | $ | 37,163 |
Three Months Ended September 30, 2020 | |||||||||||
Reinsurance Recoverable, Net | Allowance for Expected Credit Losses | ||||||||||
Balance, beginning of the period | $ | 1,292,636 | $ | 517 | |||||||
Current period change for estimated uncollectible reinsurance (1)
|
293 | ||||||||||
Write-offs of uncollectible reinsurance | — | ||||||||||
Balance, end of the period | $ | 1,286,852 | $ | 810 |
Nine Months Ended September 30, 2020 | |||||||||||
Reinsurance Recoverable, Net | Allowance for Expected Credit Losses | ||||||||||
Balance, beginning of the period | $ | 1,394,308 | $ | — | |||||||
Cumulative effect of adoption of updated accounting guidance for credit losses at January 1, 2020 | 517 | ||||||||||
Current period change for estimated uncollectible reinsurance (1)
|
293 | ||||||||||
Write-offs of uncollectible reinsurance | — | ||||||||||
Balance, end of the period | $ | 1,286,852 | $ | 810 |
Amortized | Allowance for | Gross Unrealized | Fair | |||||||||||||||||||||||||||||
September 30, 2020 | Cost |
Credit Losses (1)
|
Gains | Losses | Value | |||||||||||||||||||||||||||
U.S. Treasury | $ | 55,630 | $ | — | $ | 3,551 | $ | — | $ | 59,181 | ||||||||||||||||||||||
Federal agencies | 258 | — | 5 | — | 263 | |||||||||||||||||||||||||||
States and political subdivision bonds | 311,092 | — | 16,653 | (92) | 327,653 | |||||||||||||||||||||||||||
Foreign government | 1,764 | — | 98 | — | 1,862 | |||||||||||||||||||||||||||
Corporate bonds | 2,038,791 | (1,085) | 131,410 | (1,222) | 2,167,894 | |||||||||||||||||||||||||||
Residential mortgage-backed securities | 1,078,657 | — | 47,491 | (149) | 1,125,999 | |||||||||||||||||||||||||||
Commercial mortgage-backed securities | 572,951 | — | 57,865 | (968) | 629,848 | |||||||||||||||||||||||||||
Asset-backed securities | 32,824 | — | 1,034 | (702) | 33,156 | |||||||||||||||||||||||||||
Structured securities | 206,707 | — | 594 | (4,024) | 203,277 | |||||||||||||||||||||||||||
Total | $ | 4,298,674 | $ | (1,085) | $ | 258,701 | $ | (7,157) | $ | 4,549,133 | ||||||||||||||||||||||
NGHC | $ | 4,002,360 | $ | (935) | $ | 254,347 | $ | (6,763) | $ | 4,249,009 | ||||||||||||||||||||||
Reciprocal Exchanges | 296,314 | (150) | 4,354 | (394) | 300,124 | |||||||||||||||||||||||||||
Total | $ | 4,298,674 | $ | (1,085) | $ | 258,701 | $ | (7,157) | $ | 4,549,133 |
Amortized | Gross Unrealized | Fair | ||||||||||||||||||||||||
December 31, 2019 | Cost | Gains | Losses | Value | ||||||||||||||||||||||
U.S. Treasury | $ | 65,037 | $ | 1,992 | $ | (23) | $ | 67,006 | ||||||||||||||||||
Federal agencies | 3,907 | 8 | — | 3,915 | ||||||||||||||||||||||
States and political subdivision bonds | 298,345 | 4,778 | (1,441) | 301,682 | ||||||||||||||||||||||
Foreign government | 1,762 | 40 | — | 1,802 | ||||||||||||||||||||||
Corporate bonds | 1,859,736 | 59,184 | (2,357) | 1,916,563 | ||||||||||||||||||||||
Residential mortgage-backed securities | 1,265,830 | 15,747 | (4,117) | 1,277,460 | ||||||||||||||||||||||
Commercial mortgage-backed securities | 585,044 | 27,261 | (112) | 612,193 | ||||||||||||||||||||||
Asset-backed securities | 74,465 | 1,194 | (48) | 75,611 | ||||||||||||||||||||||
Structured securities | 222,565 | 226 | (2,665) | 220,126 | ||||||||||||||||||||||
Total | $ | 4,376,691 | $ | 110,430 | $ | (10,763) | $ | 4,476,358 | ||||||||||||||||||
NGHC | $ | 4,057,501 | $ | 104,951 | $ | (10,343) | $ | 4,152,109 | ||||||||||||||||||
Reciprocal Exchanges | 319,190 | 5,479 | (420) | 324,249 | ||||||||||||||||||||||
Total | $ | 4,376,691 | $ | 110,430 | $ | (10,763) | $ | 4,476,358 |
NGHC | Reciprocal Exchanges | Total | ||||||||||||||||||||||||||||||||||||
September 30, 2020 |
Amortized
Cost |
Fair
Value |
Amortized
Cost |
Fair
Value |
Amortized
Cost |
Fair
Value |
||||||||||||||||||||||||||||||||
Due in one year or less | $ | 59,932 | $ | 60,490 | $ | — | $ | — | $ | 59,932 | $ | 60,490 | ||||||||||||||||||||||||||
Due after one year through five years | 1,070,690 | 1,136,846 | 67,247 | 68,826 | 1,137,937 | 1,205,672 | ||||||||||||||||||||||||||||||||
Due after five years through ten years | 1,037,307 | 1,106,581 | 63,434 | 64,359 | 1,100,741 | 1,170,940 | ||||||||||||||||||||||||||||||||
Due after ten years | 295,443 | 302,797 | 20,189 | 20,231 | 315,632 | 323,028 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 1,538,988 | 1,642,295 | 145,444 | 146,708 | 1,684,432 | 1,789,003 | ||||||||||||||||||||||||||||||||
Total | $ | 4,002,360 | $ | 4,249,009 | $ | 296,314 | $ | 300,124 | $ | 4,298,674 | $ | 4,549,133 |
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||
September 30, 2020 |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
||||||||||||||||||||||||||||||||
States and political subdivision bonds | $ | 16,935 | $ | (92) | $ | — | $ | — | $ | 16,935 | $ | (92) | ||||||||||||||||||||||||||
Corporate bonds | 227,663 | (1,222) | — | — | 227,663 | (1,222) | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 59,991 | (149) | — | — | 59,991 | (149) | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 27,134 | (968) | — | — | 27,134 | (968) | ||||||||||||||||||||||||||||||||
Asset-backed securities | 6,492 | (692) | 163 | (10) | 6,655 | (702) | ||||||||||||||||||||||||||||||||
Structured securities | 81,862 | (1,852) | 53,520 | (2,172) | 135,382 | (4,024) | ||||||||||||||||||||||||||||||||
Total | $ | 420,077 | $ | (4,975) | $ | 53,683 | $ | (2,182) | $ | 473,760 | $ | (7,157) | ||||||||||||||||||||||||||
NGHC | $ | 355,598 | $ | (4,669) | $ | 49,771 | $ | (2,094) | $ | 405,369 | $ | (6,763) | ||||||||||||||||||||||||||
Reciprocal Exchanges | 64,479 | (306) | 3,912 | (88) | 68,391 | (394) | ||||||||||||||||||||||||||||||||
Total | $ | 420,077 | $ | (4,975) | $ | 53,683 | $ | (2,182) | $ | 473,760 | $ | (7,157) |
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||
December 31, 2019 |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 19,903 | $ | (23) | $ | 500 | $ | — | $ | 20,403 | $ | (23) | ||||||||||||||||||||||||||
States and political subdivision bonds | 106,103 | (1,415) | 2,580 | (26) | 108,683 | (1,441) | ||||||||||||||||||||||||||||||||
Corporate bonds | 586,817 | (2,253) | 5,976 | (104) | 592,793 | (2,357) | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 410,484 | (4,074) | 3,983 | (43) | 414,467 | (4,117) | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 18,250 | (105) | 748 | (7) | 18,998 | (112) | ||||||||||||||||||||||||||||||||
Asset-backed securities | 5,406 | (29) | 920 | (19) | 6,326 | (48) | ||||||||||||||||||||||||||||||||
Structured securities | 40,979 | (94) | 109,880 | (2,571) | 150,859 | (2,665) | ||||||||||||||||||||||||||||||||
Total | $ | 1,187,942 | $ | (7,993) | $ | 124,587 | $ | (2,770) | $ | 1,312,529 | $ | (10,763) | ||||||||||||||||||||||||||
NGHC | $ | 1,104,244 | $ | (7,654) | $ | 117,681 | $ | (2,689) | $ | 1,221,925 | $ | (10,343) | ||||||||||||||||||||||||||
Reciprocal Exchanges | 83,698 | (339) | 6,906 | (81) | 90,604 | (420) | ||||||||||||||||||||||||||||||||
Total | $ | 1,187,942 | $ | (7,993) | $ | 124,587 | $ | (2,770) | $ | 1,312,529 | $ | (10,763) |
Three Months Ended September 30, 2020 | |||||||||||
Corporate bonds | Total | ||||||||||
Balance, beginning of the period | $ | 1,203 | $ | 1,203 | |||||||
Decreases to the allowance for credit losses (1)
|
(100) | (100) | |||||||||
Decreases to the allowance for credit losses for securities sold (1)
|
(18) | (18) | |||||||||
Balance, end of the period | $ | 1,085 | $ | 1,085 |
Nine Months Ended September 30, 2020 | |||||||||||
Corporate bonds | Total | ||||||||||
Balance, beginning of the period | $ | — | $ | — | |||||||
Additions to the allowance for credit losses on securities not previously recorded (1)
|
2,927 | 2,927 | |||||||||
Decreases to the allowance for credit losses (1)
|
(1,824) | (1,824) | |||||||||
Decreases to the allowance for credit losses for securities sold (1)
|
(18) | (18) | |||||||||
Balance, end of the period | $ | 1,085 | $ | 1,085 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Cash and short-term investments | $ | 110 | $ | 1,123 | $ | 418 | $ | 3,467 | |||||||||||||||
Debt securities, available-for-sale | 29,526 | 31,439 | 92,119 | 91,631 | |||||||||||||||||||
Other, net (related parties - three months - $(1,425) and $(10); nine months - $(2,908) and $2,163)
|
497 | 2,271 | 1,438 | 10,512 | |||||||||||||||||||
Investment income | $ | 30,133 | $ | 34,833 | $ | 93,975 | $ | 105,610 | |||||||||||||||
Investment expenses | (1,229) | (1,093) | (3,653) | (3,294) | |||||||||||||||||||
Net investment income | $ | 28,904 | $ | 33,740 | $ | 90,322 | $ | 102,316 | |||||||||||||||
NGHC | $ | 26,650 | $ | 31,580 | $ | 83,873 | $ | 95,862 | |||||||||||||||
Reciprocal Exchanges | 2,254 | 2,160 | 6,449 | 6,454 | |||||||||||||||||||
Net investment income | $ | 28,904 | $ | 33,740 | $ | 90,322 | $ | 102,316 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Debt securities, available-for-sale: | |||||||||||||||||||||||
Gross gains | $ | 19,652 | $ | 3,598 | $ | 21,698 | $ | 3,921 | |||||||||||||||
Gross losses | (259) | (1,712) | (348) | (2,086) | |||||||||||||||||||
Expected credit losses | 100 | — | (1,103) | — | |||||||||||||||||||
Net realized gain on debt securities, available-for-sale | 19,493 | 1,886 | 20,247 | 1,835 | |||||||||||||||||||
Other, net (1)
|
346 | (305) | (2,111) | (5,462) | |||||||||||||||||||
Net realized gain (loss) on investments | $ | 19,839 | $ | 1,581 | $ | 18,136 | $ | (3,627) | |||||||||||||||
NGHC | $ | 6,736 | $ | 1,718 | $ | 6,179 | $ | (2,790) | |||||||||||||||
Reciprocal Exchanges | 13,103 | (137) | 11,957 | (837) | |||||||||||||||||||
Net realized gain (loss) on investments | $ | 19,839 | $ | 1,581 | $ | 18,136 | $ | (3,627) |
NGHC | Reciprocal Exchanges | |||||||||||||||||||||||||||||||||||||
September 30, 2020 |
Amortized
Cost |
Fair
Value |
Percentage |
Amortized
Cost |
Fair
Value |
Percentage | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 41,164 | $ | 44,386 | 1.0 | % | $ | 14,466 | $ | 14,795 | 4.9 | % | ||||||||||||||||||||||||||
AAA | 502,797 | 544,772 | 12.8 | % | 20,970 | 21,114 | 7.0 | % | ||||||||||||||||||||||||||||||
AA, AA+, AA- | 1,463,849 | 1,547,498 | 36.6 | % | 155,194 | 156,645 | 52.3 | % | ||||||||||||||||||||||||||||||
A, A+, A- | 1,109,928 | 1,166,023 | 27.4 | % | 39,081 | 40,077 | 13.4 | % | ||||||||||||||||||||||||||||||
BBB, BBB+, BBB- | 856,831 | 918,836 | 21.6 | % | 65,723 | 66,758 | 22.2 | % | ||||||||||||||||||||||||||||||
BB+ and lower | 27,791 | 27,494 | 0.6 | % | 880 | 735 | 0.2 | % | ||||||||||||||||||||||||||||||
Total | $ | 4,002,360 | $ | 4,249,009 | 100.0 | % | $ | 296,314 | $ | 300,124 | 100.0 | % |
NGHC | Reciprocal Exchanges | |||||||||||||||||||||||||||||||||||||
December 31, 2019 |
Amortized
Cost |
Fair
Value |
Percentage |
Amortized
Cost |
Fair
Value |
Percentage | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 52,108 | $ | 53,599 | 1.3 | % | $ | 12,929 | $ | 13,407 | 4.1 | % | ||||||||||||||||||||||||||
AAA | 515,869 | 537,508 | 12.9 | % | 20,947 | 21,555 | 6.6 | % | ||||||||||||||||||||||||||||||
AA, AA+, AA- | 1,677,787 | 1,697,220 | 40.9 | % | 120,113 | 121,720 | 37.5 | % | ||||||||||||||||||||||||||||||
A, A+, A- | 954,312 | 976,468 | 23.5 | % | 116,747 | 119,041 | 36.7 | % | ||||||||||||||||||||||||||||||
BBB, BBB+, BBB- | 795,594 | 823,239 | 19.8 | % | 48,021 | 48,093 | 14.8 | % | ||||||||||||||||||||||||||||||
BB+ and lower | 61,831 | 64,075 | 1.6 | % | 433 | 433 | 0.3 | % | ||||||||||||||||||||||||||||||
Total | $ | 4,057,501 | $ | 4,152,109 | 100.0 | % | $ | 319,190 | $ | 324,249 | 100.0 | % |
September 30, 2020 | AAA |
AA+,
AA, AA- |
A+,A,A- |
BBB+,
BBB, BBB- |
BB+ or
Lower |
Fair
Value |
% of
Corporate Bonds Portfolio |
|||||||||||||||||||||||||||||||||||||
Financial Institutions | — | % | 2.4 | % | 23.0 | % | 14.1 | % | 0.1 | % | $ | 858,974 | 39.6 | % | ||||||||||||||||||||||||||||||
Industrials | 0.3 | % | 3.3 | % | 25.5 | % | 28.1 | % | 0.4 | % | 1,247,187 | 57.6 | % | |||||||||||||||||||||||||||||||
Utilities/Other | — | % | — | % | 1.6 | % | 1.2 | % | — | % | 61,733 | 2.8 | % | |||||||||||||||||||||||||||||||
Total | 0.3 | % | 5.7 | % | 50.1 | % | 43.4 | % | 0.5 | % | $ | 2,167,894 | 100.0 | % | ||||||||||||||||||||||||||||||
NGHC | 0.3 | % | 5.7 | % | 48.3 | % | 40.3 | % | 0.5 | % | $ | 2,060,258 | 95.1 | % | ||||||||||||||||||||||||||||||
Reciprocal Exchanges | — | % | — | % | 1.8 | % | 3.1 | % | — | % | 107,636 | 4.9 | % | |||||||||||||||||||||||||||||||
Total | 0.3 | % | 5.7 | % | 50.1 | % | 43.4 | % | 0.5 | % | $ | 2,167,894 | 100.0 | % |
December 31, 2019 | AAA |
AA+,
AA, AA- |
A+,A,A- |
BBB+,
BBB, BBB- |
BB+ or
Lower |
Fair
Value |
% of
Corporate Bonds Portfolio |
|||||||||||||||||||||||||||||||||||||
Financial Institutions | — | % | 3.6 | % | 25.0 | % | 12.1 | % | 0.3 | % | $ | 785,910 | 41.0 | % | ||||||||||||||||||||||||||||||
Industrials | 0.7 | % | 2.7 | % | 24.1 | % | 29.0 | % | 0.1 | % | 1,083,959 | 56.6 | % | |||||||||||||||||||||||||||||||
Utilities/Other | — | % | — | % | 1.0 | % | 1.4 | % | — | % | 46,694 | 2.4 | % | |||||||||||||||||||||||||||||||
Total | 0.7 | % | 6.3 | % | 50.1 | % | 42.5 | % | 0.4 | % | $ | 1,916,563 | 100.0 | % | ||||||||||||||||||||||||||||||
NGHC | 0.3 | % | 5.1 | % | 44.0 | % | 40.0 | % | 0.4 | % | $ | 1,720,962 | 89.8 | % | ||||||||||||||||||||||||||||||
Reciprocal Exchanges | 0.4 | % | 1.2 | % | 6.1 | % | 2.5 | % | — | % | 195,601 | 10.2 | % | |||||||||||||||||||||||||||||||
Total | 0.7 | % | 6.3 | % | 50.1 | % | 42.5 | % | 0.4 | % | $ | 1,916,563 | 100.0 | % |
September 30, 2020 | December 31, 2019 | |||||||||||||
Cash and cash equivalents | $ | 188,282 | $ | 135,942 | ||||||||||
Restricted cash and cash equivalents | 63,061 | 28,521 | ||||||||||||
Total cash, cash equivalents and restricted cash | $ | 251,343 | $ | 164,463 |
September 30, 2020 | December 31, 2019 | |||||||||||||
Securities on deposit with state regulatory authorities | $ | 83,876 | $ | 74,061 | ||||||||||
Restricted investments to trusts in certain reinsurance transactions | 36,324 | 49,502 | ||||||||||||
Total restricted investments | $ | 120,200 | $ | 123,563 |
September 30, 2020 | December 31, 2019 | |||||||||||||
Equity method investments (related parties - $100,809 and $109,612)
|
$ | 136,935 | $ | 143,511 | ||||||||||
Notes receivable (related parties - $130,784 and $129,229)(1)
|
130,832 | 129,299 | ||||||||||||
Long-term Certificates of Deposit (CDs), at cost | 150 | 20,150 | ||||||||||||
Investments, at fair value | 5,987 | 9,365 | ||||||||||||
Investments, at cost or amortized cost | 8,962 | 8,962 | ||||||||||||
Total | $ | 282,866 | $ | 311,287 |
September 30, 2020 | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Debt securities, available-for-sale: | ||||||||||||||||||||||||||
U.S. Treasury | $ | 59,181 | $ | — | $ | — | $ | 59,181 | ||||||||||||||||||
Federal agencies | 263 | — | — | 263 | ||||||||||||||||||||||
States and political subdivision bonds | — | 325,133 | 2,520 | 327,653 | ||||||||||||||||||||||
Foreign government | — | 1,862 | — | 1,862 | ||||||||||||||||||||||
Corporate bonds | — | 2,162,525 | 5,369 | 2,167,894 | ||||||||||||||||||||||
Residential mortgage-backed securities | — | 1,125,999 | — | 1,125,999 | ||||||||||||||||||||||
Commercial mortgage-backed securities | — | 629,848 | — | 629,848 | ||||||||||||||||||||||
Asset-backed securities | — | 33,156 | — | 33,156 | ||||||||||||||||||||||
Structured securities | — | 203,277 | — | 203,277 | ||||||||||||||||||||||
Total debt securities, available-for-sale | 59,444 | 4,481,800 | 7,889 | 4,549,133 | ||||||||||||||||||||||
Short-term investments | 490,800 | 20,000 | — | 510,800 | ||||||||||||||||||||||
Other investments | 2,638 | — | 3,349 | 5,987 | ||||||||||||||||||||||
Total | $ | 552,882 | $ | 4,501,800 | $ | 11,238 | $ | 5,065,920 | ||||||||||||||||||
NGHC | $ | 507,135 | $ | 4,216,471 | $ | 11,238 | $ | 4,734,844 | ||||||||||||||||||
Reciprocal Exchanges | 45,747 | 285,329 | — | 331,076 | ||||||||||||||||||||||
Total | $ | 552,882 | $ | 4,501,800 | $ | 11,238 | $ | 5,065,920 |
December 31, 2019 | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Debt securities, available-for-sale: | ||||||||||||||||||||||||||
U.S. Treasury | $ | 67,006 | $ | — | $ | — | $ | 67,006 | ||||||||||||||||||
Federal agencies | 3,915 | — | — | 3,915 | ||||||||||||||||||||||
States and political subdivision bonds | — | 298,582 | 3,100 | 301,682 | ||||||||||||||||||||||
Foreign government | — | 1,802 | — | 1,802 | ||||||||||||||||||||||
Corporate bonds | — | 1,908,235 | 8,328 | 1,916,563 | ||||||||||||||||||||||
Residential mortgage-backed securities | — | 1,277,460 | — | 1,277,460 | ||||||||||||||||||||||
Commercial mortgage-backed securities | — | 612,193 | — | 612,193 | ||||||||||||||||||||||
Asset-backed securities | — | 75,611 | — | 75,611 | ||||||||||||||||||||||
Structured securities | — | 220,126 | — | 220,126 | ||||||||||||||||||||||
Total debt securities, available-for-sale | 70,921 | 4,394,009 | 11,428 | 4,476,358 | ||||||||||||||||||||||
Short-term investments | 59,953 | 7,400 | — | 67,353 | ||||||||||||||||||||||
Other investments | 4,881 | — | 4,484 | 9,365 | ||||||||||||||||||||||
Total | $ | 135,755 | $ | 4,401,409 | $ | 15,912 | $ | 4,553,076 | ||||||||||||||||||
NGHC | $ | 116,602 | $ | 4,091,068 | $ | 15,912 | $ | 4,223,582 | ||||||||||||||||||
Reciprocal Exchanges | 19,153 | 310,341 | — | 329,494 | ||||||||||||||||||||||
Total | $ | 135,755 | $ | 4,401,409 | $ | 15,912 | $ | 4,553,076 |
States and
political subdivision bonds |
Corporate
bonds |
Other
investments |
Total | ||||||||||||||||||||
Balance as of January 1, 2020 | $ | 3,100 | $ | 8,328 | $ | 4,484 | $ | 15,912 | |||||||||||||||
Total gains (losses) for the period: | |||||||||||||||||||||||
Included in net income | — | — | (417) | (417) | |||||||||||||||||||
Included in other comprehensive income | (580) | (2,959) | — | (3,539) | |||||||||||||||||||
Sales | — | — | (718) | (718) | |||||||||||||||||||
Balance as of September 30, 2020 | $ | 2,520 | $ | 5,369 | $ | 3,349 | $ | 11,238 | |||||||||||||||
Change in unrealized gains (losses) for the period included in net income for assets held at the end of the reporting period | $ | (417) | $ | (417) | |||||||||||||||||||
Change in unrealized gains (losses) for the period included in other comprehensive income for assets held at the end of the reporting period | $ | (580) | $ | (2,959) | $ | (3,539) |
States and
political subdivision bonds |
Corporate
bonds |
Other
investments |
Total | ||||||||||||||||||||
Balance as of January 1, 2019 | $ | 3,596 | $ | 11,767 | $ | 7,593 | $ | 22,956 | |||||||||||||||
Total gains (losses) for the period: | |||||||||||||||||||||||
Included in net income | — | — | (3,012) | (3,012) | |||||||||||||||||||
Included in other comprehensive income | (496) | (1,987) | — | (2,483) | |||||||||||||||||||
Balance as of September 30, 2019 | $ | 3,100 | $ | 9,780 | $ | 4,581 | $ | 17,461 | |||||||||||||||
Change in unrealized gains (losses) for the period included in net income for assets held at the end of the reporting period | $ | (3,012) | $ | (3,012) | |||||||||||||||||||
Change in unrealized gains (losses) for the period included in other comprehensive income for assets held at the end of the reporting period | $ | (496) | $ | (1,987) | $ | (2,483) | |||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
Input Level | Carrying amount | Fair value | Carrying amount | Fair value | |||||||||||||||||||||||||
7.625% Notes
|
Level 2 | $ | 96,993 | $ | 101,520 | $ | 96,928 | $ | 103,560 | ||||||||||||||||||||
6.75% Notes
|
Level 3 | 347,579 | 388,866 | 347,091 | 371,366 | ||||||||||||||||||||||||
Subordinated Debentures | Level 3 | 72,168 | 72,147 | 72,168 | 72,103 | ||||||||||||||||||||||||
2019 Credit Agreement | Level 3 | 140,000 | 144,267 | 140,000 | 148,272 |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Property
and Casualty |
Accident
and Health |
Total |
Property
and Casualty |
Accident
and Health |
Total | ||||||||||||||||||||||||||||||
Balance, beginning of the period | $ | 239,293 | $ | 24,230 | $ | 263,523 | $ | 226,188 | $ | 25,220 | $ | 251,408 | |||||||||||||||||||||||
Additions | 479,934 | 18,540 | 498,474 | 385,570 | 41,222 | 426,792 | |||||||||||||||||||||||||||||
Amortization | (461,933) | (15,101) | (477,034) | (372,741) | (37,800) | (410,541) | |||||||||||||||||||||||||||||
Change in DAC | 18,001 | 3,439 | 21,440 | 12,829 | 3,422 | 16,251 | |||||||||||||||||||||||||||||
Balance, end of the period | $ | 257,294 | $ | 27,669 | $ | 284,963 | $ | 239,017 | $ | 28,642 | $ | 267,659 | |||||||||||||||||||||||
NGHC | $ | 238,787 | $ | 27,669 | $ | 266,456 | $ | 215,904 | $ | 28,642 | $ | 244,546 | |||||||||||||||||||||||
Reciprocal Exchanges | 18,507 | — | 18,507 | 23,113 | — | 23,113 | |||||||||||||||||||||||||||||
Balance, end of the period | $ | 257,294 | $ | 27,669 | $ | 284,963 | $ | 239,017 | $ | 28,642 | $ | 267,659 |
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Property
and Casualty |
Accident
and Health |
NGHC |
Reciprocal
Exchanges |
Total | |||||||||||||||||||||||||
Gross balance at beginning of the period | $ | 2,528,754 | $ | 151,874 | $ | 2,680,628 | $ | 205,786 | $ | 2,886,414 | |||||||||||||||||||
Less: Reinsurance recoverable at beginning of the period | (1,016,368) | (11,266) | (1,027,634) | (84,174) | (1,111,808) | ||||||||||||||||||||||||
Net balance at beginning of the period | 1,512,386 | 140,608 | 1,652,994 | 121,612 | 1,774,606 | ||||||||||||||||||||||||
Incurred losses and LAE related to: | |||||||||||||||||||||||||||||
Current year | 1,711,599 | 248,269 | 1,959,868 | 117,486 | 2,077,354 | ||||||||||||||||||||||||
Prior year | 13,989 | (22,065) | (8,076) | (2,670) | (10,746) | ||||||||||||||||||||||||
Total incurred | 1,725,588 | 226,204 | 1,951,792 | 114,816 | 2,066,608 | ||||||||||||||||||||||||
Paid losses and LAE related to: | |||||||||||||||||||||||||||||
Current year | (959,452) | (126,296) | (1,085,748) | (68,269) | (1,154,017) | ||||||||||||||||||||||||
Prior year | (749,463) | (81,757) | (831,220) | (44,980) | (876,200) | ||||||||||||||||||||||||
Total paid | (1,708,915) | (208,053) | (1,916,968) | (113,249) | (2,030,217) | ||||||||||||||||||||||||
Net balance at end of the period | 1,529,059 | 158,759 | 1,687,818 | 123,179 | 1,810,997 | ||||||||||||||||||||||||
Plus: Reinsurance recoverable at end of the period | 982,491 | 18,660 | 1,001,151 | 85,317 | 1,086,468 | ||||||||||||||||||||||||
Gross balance at end of the period | $ | 2,511,550 | $ | 177,419 | $ | 2,688,969 | $ | 208,496 | $ | 2,897,465 |
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
Property
and Casualty |
Accident
and Health |
NGHC |
Reciprocal
Exchanges |
Total | |||||||||||||||||||||||||
Gross balance at beginning of the period | $ | 2,507,409 | $ | 271,280 | $ | 2,778,689 | $ | 178,470 | $ | 2,957,159 | |||||||||||||||||||
Less: Reinsurance recoverable at beginning of the period | (1,182,588) | (24,575) | (1,207,163) | (77,979) | (1,285,142) | ||||||||||||||||||||||||
Net balance at beginning of the period | 1,324,821 | 246,705 | 1,571,526 | 100,491 | 1,672,017 | ||||||||||||||||||||||||
Incurred losses and LAE related to: | |||||||||||||||||||||||||||||
Current year | 1,726,618 | 279,460 | 2,006,078 | 125,250 | 2,131,328 | ||||||||||||||||||||||||
Prior year | 19,791 | (37,775) | (17,984) | (666) | (18,650) | ||||||||||||||||||||||||
Total incurred | 1,746,409 | 241,685 | 1,988,094 | 124,584 | 2,112,678 | ||||||||||||||||||||||||
Paid losses and LAE related to: | |||||||||||||||||||||||||||||
Current year | (661,742) | (136,261) | (798,003) | (76,704) | (874,707) | ||||||||||||||||||||||||
Prior year | (1,013,023) | (105,076) | (1,118,099) | (39,005) | (1,157,104) | ||||||||||||||||||||||||
Total paid | (1,674,765) | (241,337) | (1,916,102) | (115,709) | (2,031,811) | ||||||||||||||||||||||||
Acquired losses and LAE reserves | 92,573 | — | 92,573 | — | 92,573 | ||||||||||||||||||||||||
Unrealized foreign exchange gain | — | (8,204) | (8,204) | — | (8,204) | ||||||||||||||||||||||||
Net balance at end of the period | 1,489,038 | 238,849 | 1,727,887 | 109,366 | 1,837,253 | ||||||||||||||||||||||||
Plus: Reinsurance recoverable at end of the period | 1,079,560 | 38,352 | 1,117,912 | 84,090 | 1,202,002 | ||||||||||||||||||||||||
Gross balance at end of the period | $ | 2,568,598 | $ | 277,201 | $ | 2,845,799 | $ | 193,456 | $ | 3,039,255 |
September 30, 2020 | December 31, 2019 | |||||||||||||
Reinsurance recoverable on paid losses | $ | 201,194 | $ | 282,500 | ||||||||||
Reinsurance recoverable on unpaid losses | 1,086,468 | 1,111,808 | ||||||||||||
Allowance for uncollectible reinsurance | (810) | — | ||||||||||||
Reinsurance recoverable, net | $ | 1,286,852 | $ | 1,394,308 |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
Assumed | Ceded | Assumed | Ceded | |||||||||||||||||||||||
Unpaid Loss and LAE reserves | $ | 43,707 | $ | 1,086,468 | $ | 50,884 | $ | 1,111,808 | ||||||||||||||||||
Unearned premiums | 18,264 | 458,960 | 15,278 | 575,747 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Premiums: | Written | Earned | Written | Earned | Written | Earned | Written | Earned | |||||||||||||||||||||||||||||||||||||||
Direct | $ | 1,457,135 | $ | 1,429,247 | $ | 1,417,792 | $ | 1,407,731 | $ | 4,240,217 | $ | 4,189,569 | $ | 4,200,571 | $ | 4,080,131 | |||||||||||||||||||||||||||||||
Assumed | 15,992 | 16,318 | 17,365 | 19,029 | 51,065 | 48,078 | 58,272 | 59,872 | |||||||||||||||||||||||||||||||||||||||
Total Gross Premium | 1,473,127 | 1,445,565 | 1,435,157 | 1,426,760 | 4,291,282 | 4,237,647 | 4,258,843 | 4,140,003 | |||||||||||||||||||||||||||||||||||||||
Ceded | (207,871) | (266,992) | (400,553) | (373,122) | (801,515) | (918,301) | (1,064,177) | (1,091,557) | |||||||||||||||||||||||||||||||||||||||
Net Premium | $ | 1,265,256 | $ | 1,178,573 | $ | 1,034,604 | $ | 1,053,638 | $ | 3,489,767 | $ | 3,319,346 | $ | 3,194,666 | $ | 3,048,446 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | ||||||||||||||||||||||||||||||||||||||||
Loss and LAE | $ | 5,888 | $ | 192,884 | $ | 7,024 | $ | 245,095 | $ | 19,659 | $ | 579,535 | $ | 23,670 | $ | 605,126 |
Interest Rate | Maturity | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||
Fixed-rate: | ||||||||||||||||||||||||||
6.75% Notes
|
6.75% | 2024 | $ | 350,000 | $ | 350,000 | ||||||||||||||||||||
7.625% Notes
|
7.625% | 2055 | 100,000 | 100,000 | ||||||||||||||||||||||
Floating-rate: | ||||||||||||||||||||||||||
Subordinated Debentures I(1)
|
LIBOR + 3.40%
|
2035 | 41,238 | 41,238 | ||||||||||||||||||||||
Subordinated Debentures II(2)
|
LIBOR + 4.25%
|
2037 | 30,930 | 30,930 | ||||||||||||||||||||||
2019 Credit Agreement(3)
|
LIBOR + 1.75%
|
2023 | 140,000 | 140,000 | ||||||||||||||||||||||
Finance lease liabilities | Various | Various | 18,133 | 20,477 | ||||||||||||||||||||||
Other | 3.5% | Various | 4,563 | 9,342 | ||||||||||||||||||||||
Unamortized debt issuance costs and unamortized discount | (5,428) | (5,981) | ||||||||||||||||||||||||
Total carrying amount of debt | $ | 679,436 | $ | 686,006 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
Interest Payment Frequency | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||
6.75% Notes
|
Semiannually | $ | 5,906 | $ | 5,906 | $ | 17,719 | $ | 17,719 | |||||||||||||||||||||||
7.625% Notes
|
Quarterly | 1,906 | 1,906 | 5,719 | 5,719 | |||||||||||||||||||||||||||
Subordinated Debentures | Quarterly | 749 | 1,118 | 2,556 | 3,470 | |||||||||||||||||||||||||||
2016 Credit Agreement | Quarterly | — | — | — | 1,211 | |||||||||||||||||||||||||||
2019 Credit Agreement | Quarterly | 678 | 1,674 | 2,712 | 4,020 | |||||||||||||||||||||||||||
Finance lease liabilities | Various | 259 | 302 | 906 | 888 | |||||||||||||||||||||||||||
Other(1)
|
Various | 1,794 | 1,992 | 5,239 | 5,795 | |||||||||||||||||||||||||||
Total interest expense | $ | 11,292 | $ | 12,898 | $ | 34,851 | $ | 38,822 |
2020 (remaining three months) | 2021 | 2022 | 2023 | 2024 | 2025 and thereafter | Total | |||||||||||||||||||||||||||||||||||
6.75% Notes
|
$ | — | $ | — | $ | — | $ | — | $ | 350,000 | $ | — | $ | 350,000 | |||||||||||||||||||||||||||
7.625% Notes
|
— | — | — | — | — | 100,000 | 100,000 | ||||||||||||||||||||||||||||||||||
Subordinated Debentures I | — | — | — | — | — | 41,238 | 41,238 | ||||||||||||||||||||||||||||||||||
Subordinated Debentures II | — | — | — | — | — | 30,930 | 30,930 | ||||||||||||||||||||||||||||||||||
2019 Credit Agreement | — | — | — | 140,000 | — | — | 140,000 | ||||||||||||||||||||||||||||||||||
Finance lease liabilities | 1,665 | 5,962 | 3,796 | 2,349 | 1,402 | 2,959 | 18,133 | ||||||||||||||||||||||||||||||||||
Other | 1,620 | 2,943 | — | — | — | — | 4,563 | ||||||||||||||||||||||||||||||||||
Total principal amount of debt | $ | 3,285 | $ | 8,905 | $ | 3,796 | $ | 142,349 | $ | 351,402 | $ | 175,127 | $ | 684,864 | |||||||||||||||||||||||||||
Unamortized debt issuance costs and unamortized discount | (5,428) | ||||||||||||||||||||||||||||||||||||||||
Carrying amount of debt | $ | 679,436 |
Series |
Dividend rate
per year |
Shares of preferred stock issued and outstanding | Depositary shares issued and outstanding | Liquidation preference per share | Aggregate liquidation preference | |||||||||||||||||||||||||||
A | 7.50 | % | 2,200,000 | — | $ | 25 | $ | 55,000 | ||||||||||||||||||||||||
B | 7.50 | % | 165,000 | 6,600,000 | $ | 1,000 | $ | 165,000 | ||||||||||||||||||||||||
C | 7.50 | % | 200,000 | 8,000,000 | $ | 1,000 | $ | 200,000 | ||||||||||||||||||||||||
D |
Fixed/ Floating(1)
|
120 | — | $ | 250,000 | $ | 30,000 | |||||||||||||||||||||||||
2,565,120 | $ | 450,000 |
Class of Stock | Declaration Date |
Dividend
Per Share |
Dividend Per Depositary Share | |||||||||||||||||
Common stock | July 31, 2020 | $ | 0.05 | |||||||||||||||||
Common stock | April 29, 2020 | $ | 0.05 | |||||||||||||||||
Common stock | February 20, 2020 | $ | 0.05 | |||||||||||||||||
Preferred stock Series A | July 31, 2020 | $ | 0.46875 | |||||||||||||||||
Preferred stock Series A | April 29, 2020 | $ | 0.46875 | |||||||||||||||||
Preferred stock Series A | February 20, 2020 | $ | 0.46875 | |||||||||||||||||
Preferred stock Series B and Series C | July 31, 2020 | $ | 18.75 | $ | 0.46875 | |||||||||||||||
Preferred stock Series B and Series C | April 29, 2020 | $ | 18.75 | $ | 0.46875 | |||||||||||||||
Preferred stock Series B and Series C | February 20, 2020 | $ | 18.75 | $ | 0.46875 | |||||||||||||||
Preferred stock Series D | April 29, 2020 | $ | 8,750.00 |
Class of Stock | Declaration Date |
Dividend
Per Share |
Dividend Per Depositary Share | |||||||||||||||||
Common stock | July 29, 2019 | $ | 0.05 | |||||||||||||||||
Common stock | May 6, 2019 | $ | 0.04 | |||||||||||||||||
Common stock | February 25, 2019 | $ | 0.04 | |||||||||||||||||
Preferred stock Series A | July 29, 2019 | $ | 0.46875 | |||||||||||||||||
Preferred stock Series A | May 6, 2019 | $ | 0.46875 | |||||||||||||||||
Preferred stock Series A | February 25, 2019 | $ | 0.46875 | |||||||||||||||||
Preferred stock Series B and Series C | July 29, 2019 | $ | 18.75 | $ | 0.46875 | |||||||||||||||
Preferred stock Series B and Series C | May 6, 2019 | $ | 18.75 | $ | 0.46875 | |||||||||||||||
Preferred stock Series B and Series C | February 25, 2019 | $ | 18.75 | $ | 0.46875 | |||||||||||||||
Preferred stock Series D | May 6, 2019 | $ | 8,750.00 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Common stock: | |||||||||||||||||||||||
Balance, beginning of the period | 113,856,628 | 113,215,632 | 113,368,811 | 112,940,595 | |||||||||||||||||||
Shares issued under employee stock plans and exercises of stock options | 82,196 | 117,796 | 744,161 | 518,284 | |||||||||||||||||||
Shares withheld related to net share settlement | (4,565) | (20,386) | (178,713) | (145,837) | |||||||||||||||||||
Balance, end of the period | 113,934,259 | 113,313,042 | 113,934,259 | 113,313,042 | |||||||||||||||||||
Treasury stock: | |||||||||||||||||||||||
Balance, beginning of the period | (459,083) | — | — | — | |||||||||||||||||||
Repurchases of common stock | — | — | (459,083) | — | |||||||||||||||||||
Balance, end of the period | (459,083) | — | (459,083) | — | |||||||||||||||||||
Shares outstanding at end of the period | 113,475,176 | 113,313,042 | 113,475,176 | 113,313,042 |
Shares Subject to Options Outstanding | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | Number of Shares |
Weighted-
Average Exercise Price |
Weighted-Average Remaining Contractual Term (in years) |
Aggregate
Intrinsic
Value (1)
|
||||||||||||||||||||||
Outstanding at beginning of the period | 3,025,587 | $ | 9.83 | |||||||||||||||||||||||
Exercised | (286,443) | 6.88 | ||||||||||||||||||||||||
Outstanding and exercisable at end of the period | 2,739,144 | $ | 10.14 | 2.6 | $ | 64,672 |
RSUs | ||||||||||||||
Nine Months Ended September 30, 2020 | Number of RSUs | Weighted-Average Grant Date Fair Value | ||||||||||||
Non-vested at beginning of the period | 1,033,631 | $ | 23.98 | |||||||||||
Granted | 561,497 | 21.46 | ||||||||||||
Vested | (457,718) | 23.70 | ||||||||||||
Non-vested at end of the period | 1,137,410 | $ | 22.85 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income attributable to NGHC | $ | 109,969 | $ | 71,154 | $ | 377,302 | $ | 240,788 | |||||||||||||||
Preferred stock dividends - nonconvertible | (7,875) | (7,875) | (23,625) | (23,625) | |||||||||||||||||||
Preferred stock dividends - convertible | — | — | (1,050) | (1,050) | |||||||||||||||||||
Numerator for basic EPS | 102,094 | 63,279 | 352,627 | 216,113 | |||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Preferred stock dividends - convertible | — | — | 1,050 | 1,050 | |||||||||||||||||||
Numerator for diluted EPS - after assumed conversions | $ | 102,094 | $ | 63,279 | $ | 353,677 | $ | 217,163 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Denominator for basic EPS - weighted-average shares outstanding | 113,418,411 | 113,263,367 | 113,505,785 | 113,153,121 | |||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Employee stock options | 1,924,602 | 1,823,012 | 1,654,114 | 1,881,295 | |||||||||||||||||||
RSUs | 533,888 | 262,637 | 282,480 | 263,635 | |||||||||||||||||||
Convertible preferred stock | 789,473 | 789,473 | 789,473 | 789,473 | |||||||||||||||||||
Dilutive potential common shares | 3,247,963 | 2,875,122 | 2,726,067 | 2,934,403 | |||||||||||||||||||
Denominator for diluted EPS - weighted-average shares outstanding and assumed conversions | 116,666,374 | 116,138,489 | 116,231,852 | 116,087,524 | |||||||||||||||||||
EPS attributable to NGHC common stockholders: | |||||||||||||||||||||||
Basic EPS | $ | 0.90 | $ | 0.56 | $ | 3.11 | $ | 1.91 | |||||||||||||||
Diluted EPS | $ | 0.88 | $ | 0.54 | $ | 3.04 | $ | 1.87 |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||
Property
and Casualty |
Accident
and Health |
Corporate
and Other |
Total | ||||||||||||||||||||
Underwriting revenues: | |||||||||||||||||||||||
Gross premium written | $ | 1,277,190 | $ | 195,937 | $ | — | $ | 1,473,127 | |||||||||||||||
Ceded premiums | (186,264) | (21,607) | — | (207,871) | |||||||||||||||||||
Net premium written | 1,090,926 | 174,330 | — | 1,265,256 | |||||||||||||||||||
Change in unearned premium | (87,757) | 1,074 | — | (86,683) | |||||||||||||||||||
Net earned premium | 1,003,169 | 175,404 | — | 1,178,573 | |||||||||||||||||||
Ceding commission income | 30,519 | 205 | — | 30,724 | |||||||||||||||||||
Service and fee income | 96,372 | 88,597 | — | 184,969 | |||||||||||||||||||
Total underwriting revenues | 1,130,060 | 264,206 | — | 1,394,266 | |||||||||||||||||||
Underwriting expenses: | |||||||||||||||||||||||
Loss and loss adjustment expense | 696,216 | 77,948 | — | 774,164 | |||||||||||||||||||
Acquisition costs and other underwriting expenses | 189,367 | 79,278 | — | 268,645 | |||||||||||||||||||
General and administrative expenses | 182,146 | 58,892 | 3,573 | 244,611 | |||||||||||||||||||
Total underwriting expenses | 1,067,729 | 216,118 | 3,573 | 1,287,420 | |||||||||||||||||||
Underwriting income | 62,331 | 48,088 | (3,573) | 106,846 | |||||||||||||||||||
Net investment income | — | — | 28,904 | 28,904 | |||||||||||||||||||
Net gain on investments | — | — | 19,839 | 19,839 | |||||||||||||||||||
Interest expense | — | — | (11,292) | (11,292) | |||||||||||||||||||
Provision for income taxes | — | — | (27,428) | (27,428) | |||||||||||||||||||
Net (income) attributable to noncontrolling interest | — | — | (6,900) | (6,900) | |||||||||||||||||||
Net income attributable to NGHC | $ | 62,331 | $ | 48,088 | $ | (450) | $ | 109,969 |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||
Property
and Casualty |
Accident
and Health |
Corporate
and Other |
Total | ||||||||||||||||||||
Underwriting revenues: | |||||||||||||||||||||||
Gross premium written | $ | 1,272,602 | $ | 162,555 | $ | — | $ | 1,435,157 | |||||||||||||||
Ceded premiums | (385,347) | (15,206) | — | (400,553) | |||||||||||||||||||
Net premium written | 887,255 | 147,349 | — | 1,034,604 | |||||||||||||||||||
Change in unearned premium | (2,520) | 21,554 | — | 19,034 | |||||||||||||||||||
Net earned premium | 884,735 | 168,903 | — | 1,053,638 | |||||||||||||||||||
Ceding commission income | 55,326 | 2,261 | — | 57,587 | |||||||||||||||||||
Service and fee income | 97,890 | 63,736 | — | 161,626 | |||||||||||||||||||
Total underwriting revenues | 1,037,951 | 234,900 | — | 1,272,851 | |||||||||||||||||||
Underwriting expenses: | |||||||||||||||||||||||
Loss and loss adjustment expense | 674,722 | 70,612 | — | 745,334 | |||||||||||||||||||
Acquisition costs and other underwriting expenses | 161,876 | 47,214 | — | 209,090 | |||||||||||||||||||
General and administrative expenses | 195,567 | 68,297 | — | 263,864 | |||||||||||||||||||
Total underwriting expenses | 1,032,165 | 186,123 | — | 1,218,288 | |||||||||||||||||||
Underwriting income | 5,786 | 48,777 | — | 54,563 | |||||||||||||||||||
Net investment income | — | — | 33,740 | 33,740 | |||||||||||||||||||
Net gain on investments | — | — | 1,581 | 1,581 | |||||||||||||||||||
Interest expense | — | — | (12,898) | (12,898) | |||||||||||||||||||
Provision for income taxes | — | — | (16,747) | (16,747) | |||||||||||||||||||
Net loss attributable to noncontrolling interest | — | — | 10,915 | 10,915 | |||||||||||||||||||
Net income attributable to NGHC | $ | 5,786 | $ | 48,777 | $ | 16,591 | $ | 71,154 |
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||
Property
and Casualty |
Accident
and Health |
Corporate
and Other |
Total | ||||||||||||||||||||
Underwriting revenues: | |||||||||||||||||||||||
Gross premium written | $ | 3,718,663 | $ | 572,619 | $ | — | $ | 4,291,282 | |||||||||||||||
Ceded premiums | (739,654) | (61,861) | — | (801,515) | |||||||||||||||||||
Net premium written | 2,979,009 | 510,758 | — | 3,489,767 | |||||||||||||||||||
Change in unearned premium | (168,570) | (1,851) | — | (170,421) | |||||||||||||||||||
Net earned premium | 2,810,439 | 508,907 | — | 3,319,346 | |||||||||||||||||||
Ceding commission income | 126,433 | 1,236 | — | 127,669 | |||||||||||||||||||
Service and fee income | 295,813 | 249,189 | — | 545,002 | |||||||||||||||||||
Total underwriting revenues | 3,232,685 | 759,332 | — | 3,992,017 | |||||||||||||||||||
Underwriting expenses: | |||||||||||||||||||||||
Loss and loss adjustment expense | 1,840,404 | 226,204 | — | 2,066,608 | |||||||||||||||||||
Acquisition costs and other underwriting expenses | 511,622 | 214,643 | — | 726,265 | |||||||||||||||||||
General and administrative expenses | 594,381 | 176,635 | 3,573 | 774,589 | |||||||||||||||||||
Total underwriting expenses | 2,946,407 | 617,482 | 3,573 | 3,567,462 | |||||||||||||||||||
Underwriting income | 286,278 | 141,850 | (3,573) | 424,555 | |||||||||||||||||||
Net investment income | — | — | 90,322 | 90,322 | |||||||||||||||||||
Net gain on investments | — | — | 18,136 | 18,136 | |||||||||||||||||||
Interest expense | — | — | (34,851) | (34,851) | |||||||||||||||||||
Provision for income taxes | — | — | (106,107) | (106,107) | |||||||||||||||||||
Net (income) attributable to noncontrolling interest | — | — | (14,753) | (14,753) | |||||||||||||||||||
Net income attributable to NGHC | $ | 286,278 | $ | 141,850 | $ | (50,826) | $ | 377,302 |
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||
Property
and Casualty |
Accident
and Health |
Corporate
and Other |
Total | ||||||||||||||||||||
Underwriting revenues: | |||||||||||||||||||||||
Gross premium written | $ | 3,666,072 | $ | 592,771 | $ | — | $ | 4,258,843 | |||||||||||||||
Ceded premiums | (971,643) | (92,534) | — | (1,064,177) | |||||||||||||||||||
Net premium written | 2,694,429 | 500,237 | — | 3,194,666 | |||||||||||||||||||
Change in unearned premium | (142,515) | (3,705) | — | (146,220) | |||||||||||||||||||
Net earned premium | 2,551,914 | 496,532 | — | 3,048,446 | |||||||||||||||||||
Ceding commission income | 178,533 | 8,780 | — | 187,313 | |||||||||||||||||||
Service and fee income | 298,356 | 177,685 | — | 476,041 | |||||||||||||||||||
Total underwriting revenues | 3,028,803 | 682,997 | — | 3,711,800 | |||||||||||||||||||
Underwriting expenses: | |||||||||||||||||||||||
Loss and loss adjustment expense | 1,870,993 | 241,685 | — | 2,112,678 | |||||||||||||||||||
Acquisition costs and other underwriting expenses | 462,071 | 153,063 | — | 615,134 | |||||||||||||||||||
General and administrative expenses | 571,498 | 188,227 | — | 759,725 | |||||||||||||||||||
Total underwriting expenses | 2,904,562 | 582,975 | — | 3,487,537 | |||||||||||||||||||
Underwriting income | 124,241 | 100,022 | — | 224,263 | |||||||||||||||||||
Net investment income | — | — | 102,316 | 102,316 | |||||||||||||||||||
Net loss on investments | — | — | (3,627) | (3,627) | |||||||||||||||||||
Interest expense | — | — | (38,822) | (38,822) | |||||||||||||||||||
Provision for income taxes | — | — | (61,494) | (61,494) | |||||||||||||||||||
Net loss attributable to noncontrolling interest | — | — | 18,152 | 18,152 | |||||||||||||||||||
Net income attributable to NGHC | $ | 124,241 | $ | 100,022 | $ | 16,525 | $ | 240,788 |
September 30, 2020 | ||||||||||||||||||||||||||
Property
and Casualty |
Accident
and Health |
Corporate
and Other |
Total | |||||||||||||||||||||||
Premiums and other receivables, net | $ | 1,379,512 | $ | 197,487 | $ | 21,317 | $ | 1,598,316 | ||||||||||||||||||
Deferred acquisition costs | 257,294 | 27,669 | — | 284,963 | ||||||||||||||||||||||
Reinsurance recoverable, net | 1,260,791 | 26,061 | — | 1,286,852 | ||||||||||||||||||||||
Prepaid reinsurance premiums | 458,578 | 382 | — | 458,960 | ||||||||||||||||||||||
Goodwill and Intangible assets, net | 420,779 | 104,523 | — | 525,302 | ||||||||||||||||||||||
Prepaid and other assets | 49,533 | 12,257 | 5,100 | 66,890 | ||||||||||||||||||||||
Corporate and other assets | — | — | 6,002,973 | 6,002,973 | ||||||||||||||||||||||
Total assets | $ | 3,826,487 | $ | 368,379 | $ | 6,029,390 | $ | 10,224,256 |
December 31, 2019 | ||||||||||||||||||||||||||
Property
and Casualty |
Accident
and Health |
Corporate
and Other |
Total | |||||||||||||||||||||||
Premiums and other receivables, net | $ | 1,292,813 | $ | 131,877 | $ | 4,258 | $ | 1,428,948 | ||||||||||||||||||
Deferred acquisition costs | 239,293 | 24,230 | — | 263,523 | ||||||||||||||||||||||
Reinsurance recoverable, net | 1,377,284 | 17,024 | — | 1,394,308 | ||||||||||||||||||||||
Prepaid reinsurance premiums | 575,712 | 35 | — | 575,747 | ||||||||||||||||||||||
Goodwill and Intangible assets, net | 436,724 | 108,427 | — | 545,151 | ||||||||||||||||||||||
Prepaid and other assets | 56,960 | 32,852 | 4,830 | 94,642 | ||||||||||||||||||||||
Corporate and other assets | — | — | 5,454,215 | 5,454,215 | ||||||||||||||||||||||
Total assets | $ | 3,978,786 | $ | 314,445 | $ | 5,463,303 | $ | 9,756,534 |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||||||||
Property
and Casualty |
Accident
and Health |
Total |
Property
and Casualty |
Accident
and Health |
Total | |||||||||||||||||||||||||||||||||
Finance and processing fees | $ | 32,237 | $ | 2,546 | $ | 34,783 | $ | 33,637 | $ | 800 | $ | 34,437 | ||||||||||||||||||||||||||
Commission revenue | 11,799 | 21,836 | 33,635 | 21,333 | 16,353 | 37,686 | ||||||||||||||||||||||||||||||||
Group health administrative fees | — | 31,147 | 31,147 | — | 25,808 | 25,808 | ||||||||||||||||||||||||||||||||
Installment fees | 26,789 | — | 26,789 | 23,464 | — | 23,464 | ||||||||||||||||||||||||||||||||
Late payment fees | 8,324 | 16 | 8,340 | 9,251 | 72 | 9,323 | ||||||||||||||||||||||||||||||||
Other service and fee income | 17,223 | 33,052 | 50,275 | 10,205 | 20,703 | 30,908 | ||||||||||||||||||||||||||||||||
Total | $ | 96,372 | $ | 88,597 | $ | 184,969 | $ | 97,890 | $ | 63,736 | $ | 161,626 | ||||||||||||||||||||||||||
NGHC | $ | 94,744 | $ | 88,597 | $ | 183,341 | $ | 96,305 | $ | 63,736 | $ | 160,041 | ||||||||||||||||||||||||||
Reciprocal Exchanges | 1,628 | — | 1,628 | 1,585 | — | 1,585 | ||||||||||||||||||||||||||||||||
Total | $ | 96,372 | $ | 88,597 | $ | 184,969 | $ | 97,890 | $ | 63,736 | $ | 161,626 |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||||||||
Property
and Casualty |
Accident
and Health |
Total |
Property
and Casualty |
Accident
and Health |
Total | |||||||||||||||||||||||||||||||||
Commission revenue | $ | 48,466 | $ | 75,822 | $ | 124,288 | $ | 68,193 | $ | 57,097 | $ | 125,290 | ||||||||||||||||||||||||||
Finance and processing fees | 96,212 | 7,222 | 103,434 | 98,218 | 3,710 | 101,928 | ||||||||||||||||||||||||||||||||
Group health administrative fees | — | 91,658 | 91,658 | — | 73,861 | 73,861 | ||||||||||||||||||||||||||||||||
Installment fees | 78,282 | — | 78,282 | 72,782 | — | 72,782 | ||||||||||||||||||||||||||||||||
Late payment fees | 23,905 | 41 | 23,946 | 26,061 | 249 | 26,310 | ||||||||||||||||||||||||||||||||
Other service and fee income | 48,948 | 74,446 | 123,394 | 33,102 | 42,768 | 75,870 | ||||||||||||||||||||||||||||||||
Total | $ | 295,813 | $ | 249,189 | $ | 545,002 | $ | 298,356 | $ | 177,685 | $ | 476,041 | ||||||||||||||||||||||||||
NGHC | $ | 290,692 | $ | 249,189 | $ | 539,881 | $ | 293,885 | $ | 177,685 | $ | 471,570 | ||||||||||||||||||||||||||
Reciprocal Exchanges | 5,121 | — | 5,121 | 4,471 | — | 4,471 | ||||||||||||||||||||||||||||||||
Total | $ | 295,813 | $ | 249,189 | $ | 545,002 | $ | 298,356 | $ | 177,685 | $ | 476,041 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
Gross Premium Written | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Property and Casualty | ||||||||||||||||||||||||||
Personal Auto | $ | 741,306 | $ | 705,709 | $ | 2,148,730 | $ | 2,083,702 | ||||||||||||||||||
Homeowners | 210,721 | 201,977 | 581,185 | 544,056 | ||||||||||||||||||||||
RV/Packaged | 59,191 | 55,631 | 170,120 | 168,796 | ||||||||||||||||||||||
Small Business Auto | 62,159 | 76,987 | 195,628 | 246,694 | ||||||||||||||||||||||
Lender-placed Insurance | 96,327 | 97,468 | 295,693 | 232,265 | ||||||||||||||||||||||
Other | 9,099 | 16,563 | 38,631 | 45,577 | ||||||||||||||||||||||
Total Property and Casualty | 1,178,803 | 1,154,335 | 3,429,987 | 3,321,090 | ||||||||||||||||||||||
Accident and Health | ||||||||||||||||||||||||||
Group | 89,852 | 73,223 | 266,857 | 213,197 | ||||||||||||||||||||||
Individual | 106,085 | 85,728 | 305,762 | 252,719 | ||||||||||||||||||||||
International | — | 3,604 | — | 126,855 | ||||||||||||||||||||||
Total Accident and Health | 195,937 | 162,555 | 572,619 | 592,771 | ||||||||||||||||||||||
Total NGHC | $ | 1,374,740 | $ | 1,316,890 | $ | 4,002,606 | $ | 3,913,861 | ||||||||||||||||||
Reciprocal Exchanges | ||||||||||||||||||||||||||
Personal Auto | $ | 33,561 | $ | 39,166 | $ | 102,752 | $ | 120,012 | ||||||||||||||||||
Homeowners | 63,935 | 78,079 | 183,331 | 222,019 | ||||||||||||||||||||||
Other | 891 | 1,022 | 2,593 | 2,951 | ||||||||||||||||||||||
Total Reciprocal Exchanges | $ | 98,387 | $ | 118,267 | $ | 288,676 | $ | 344,982 | ||||||||||||||||||
Total Gross Premium Written | $ | 1,473,127 | $ | 1,435,157 | $ | 4,291,282 | $ | 4,258,843 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
Net Premium Written | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Property and Casualty | ||||||||||||||||||||||||||
Personal Auto | $ | 650,889 | $ | 560,032 | $ | 1,886,438 | $ | 1,730,904 | ||||||||||||||||||
Homeowners | 217,960 | 82,601 | 390,760 | 276,250 | ||||||||||||||||||||||
RV/Packaged | 57,834 | 52,283 | 165,694 | 162,047 | ||||||||||||||||||||||
Small Business Auto | 47,556 | 56,615 | 152,584 | 196,221 | ||||||||||||||||||||||
Lender-placed Insurance | 82,599 | 61,579 | 224,742 | 140,863 | ||||||||||||||||||||||
Other | 4,597 | 6,860 | 16,737 | 15,684 | ||||||||||||||||||||||
Total Property and Casualty | 1,061,435 | 819,970 | 2,836,955 | 2,521,969 | ||||||||||||||||||||||
Accident and Health | ||||||||||||||||||||||||||
Group | 70,672 | 59,001 | 209,360 | 170,911 | ||||||||||||||||||||||
Individual | 103,658 | 85,541 | 301,398 | 252,316 | ||||||||||||||||||||||
International | — | 2,807 | — | 77,010 | ||||||||||||||||||||||
Total Accident and Health | 174,330 | 147,349 | 510,758 | 500,237 | ||||||||||||||||||||||
Total NGHC | $ | 1,235,765 | $ | 967,319 | $ | 3,347,713 | $ | 3,022,206 | ||||||||||||||||||
Reciprocal Exchanges | ||||||||||||||||||||||||||
Personal Auto | $ | 10,323 | $ | 67,154 | $ | 73,678 | $ | 101,460 | ||||||||||||||||||
Homeowners | 18,166 | (2,047) | 66,758 | 68,180 | ||||||||||||||||||||||
Other | 1,002 | 2,178 | 1,618 | 2,820 | ||||||||||||||||||||||
Total Reciprocal Exchanges | $ | 29,491 | $ | 67,285 | $ | 142,054 | $ | 172,460 | ||||||||||||||||||
Total Net Premium Written | $ | 1,265,256 | $ | 1,034,604 | $ | 3,489,767 | $ | 3,194,666 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
Net Earned Premium | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Property and Casualty | ||||||||||||||||||||||||||
Personal Auto | $ | 632,781 | $ | 568,346 | $ | 1,773,831 | $ | 1,621,734 | ||||||||||||||||||
Homeowners | 130,278 | 86,525 | 321,129 | 272,591 | ||||||||||||||||||||||
RV/Packaged | 52,126 | 51,023 | 148,374 | 150,739 | ||||||||||||||||||||||
Small Business Auto | 53,158 | 62,265 | 166,316 | 189,957 | ||||||||||||||||||||||
Lender-placed Insurance | 77,441 | 56,599 | 218,210 | 158,595 | ||||||||||||||||||||||
Other | 3,287 | 2,860 | 16,098 | 8,893 | ||||||||||||||||||||||
Total Property and Casualty | 949,071 | 827,618 | 2,643,958 | 2,402,509 | ||||||||||||||||||||||
Accident and Health | ||||||||||||||||||||||||||
Group | 70,670 | 59,009 | 209,372 | 170,921 | ||||||||||||||||||||||
Individual | 104,734 | 85,971 | 299,535 | 252,122 | ||||||||||||||||||||||
International | — | 23,923 | — | 73,489 | ||||||||||||||||||||||
Total Accident and Health | 175,404 | 168,903 | 508,907 | 496,532 | ||||||||||||||||||||||
NGHC Total | $ | 1,124,475 | $ | 996,521 | $ | 3,152,865 | $ | 2,899,041 | ||||||||||||||||||
Reciprocal Exchanges | ||||||||||||||||||||||||||
Personal Auto | $ | 24,654 | $ | 33,953 | $ | 89,291 | $ | 65,907 | ||||||||||||||||||
Homeowners | 28,963 | 22,759 | 76,037 | 82,475 | ||||||||||||||||||||||
Other | 481 | 405 | 1,153 | 1,023 | ||||||||||||||||||||||
Total Reciprocal Exchanges | $ | 54,098 | $ | 57,117 | $ | 166,481 | $ | 149,405 | ||||||||||||||||||
Total Net Earned Premium | $ | 1,178,573 | $ | 1,053,638 | $ | 3,319,346 | $ | 3,048,446 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
Fee Income | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Property and Casualty | ||||||||||||||||||||||||||
Service and Fee Income | $ | 94,744 | $ | 96,305 | $ | 290,692 | $ | 293,885 | ||||||||||||||||||
Ceding Commission Income | 21,567 | 40,260 | 92,657 | 128,087 | ||||||||||||||||||||||
Total Property and Casualty | 116,311 | 136,565 | 383,349 | 421,972 | ||||||||||||||||||||||
Accident and Health | ||||||||||||||||||||||||||
Service and Fee Income | ||||||||||||||||||||||||||
Group | 44,306 | 34,848 | 128,029 | 98,084 | ||||||||||||||||||||||
Individual | 2,379 | 2,128 | 6,861 | 5,506 | ||||||||||||||||||||||
Third-Party Fee | 41,912 | 26,760 | 114,299 | 74,095 | ||||||||||||||||||||||
Total Service and Fee Income | 88,597 | 63,736 | 249,189 | 177,685 | ||||||||||||||||||||||
Ceding Commission Income | 205 | 2,261 | 1,236 | 8,780 | ||||||||||||||||||||||
Total Accident and Health | 88,802 | 65,997 | 250,425 | 186,465 | ||||||||||||||||||||||
NGHC Total | $ | 205,113 | $ | 202,562 | $ | 633,774 | $ | 608,437 | ||||||||||||||||||
Reciprocal Exchanges | ||||||||||||||||||||||||||
Service and Fee Income | $ | 1,628 | $ | 1,585 | $ | 5,121 | $ | 4,471 | ||||||||||||||||||
Ceding Commission Income | 8,952 | 15,066 | 33,776 | 50,446 | ||||||||||||||||||||||
Total Reciprocal Exchanges | $ | 10,580 | $ | 16,651 | $ | 38,897 | $ | 54,917 | ||||||||||||||||||
Total Fee Income | $ | 215,693 | $ | 219,213 | $ | 672,671 | $ | 663,354 |
Property and Casualty: | ||
Agent Alliance Insurance Company | ||
Century-National Insurance Company | ||
Direct General Insurance Company | ||
Direct General Insurance Company of Mississippi | ||
Direct Insurance Company | ||
Direct National Insurance Company | ||
Imperial Fire and Casualty Insurance Company | ||
Integon Casualty Insurance Company | ||
Integon General Insurance Corporation | ||
Integon Indemnity Corporation | ||
Integon National Insurance Company | ||
Integon Preferred Insurance Company | ||
MIC General Insurance Corporation | ||
National Farmers Union Property and Casualty Company | ||
National General Assurance Company | ||
National General Insurance Company | ||
National General Insurance Online, Inc. | ||
National General Premier Insurance Company | ||
New South Insurance Company | ||
Standard Property and Casualty Insurance Company | ||
Accident and Health: | ||
Direct General Life Insurance Company | ||
National Health Insurance Company |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
NGHC | Reciprocal Exchanges | Eliminations | Total | NGHC | Reciprocal Exchanges | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||
Underwriting revenues: | (amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Gross premium written | $ | 1,374,740 | $ | 98,387 | $ | — | $ | 1,473,127 | $ | 1,316,890 | $ | 118,267 | $ | — | $ | 1,435,157 | |||||||||||||||||||||||||||||||
Ceded premiums | (138,975) | (68,896) | — | (207,871) | (349,571) | (50,982) | — | (400,553) | |||||||||||||||||||||||||||||||||||||||
Net premium written | $ | 1,235,765 | $ | 29,491 | $ | — | $ | 1,265,256 | $ | 967,319 | $ | 67,285 | $ | — | $ | 1,034,604 | |||||||||||||||||||||||||||||||
Change in unearned premium | (111,290) | 24,607 | — | (86,683) | 29,202 | (10,168) | — | 19,034 | |||||||||||||||||||||||||||||||||||||||
Net earned premium | $ | 1,124,475 | $ | 54,098 | $ | — | $ | 1,178,573 | $ | 996,521 | $ | 57,117 | $ | — | $ | 1,053,638 | |||||||||||||||||||||||||||||||
Ceding commission income | 21,772 | 8,952 | — | 30,724 | 42,521 | 15,066 | — | 57,587 | |||||||||||||||||||||||||||||||||||||||
Service and fee income | 198,353 | 1,628 | (15,012) | 184,969 | 179,293 | 1,585 | (19,252) | 161,626 | |||||||||||||||||||||||||||||||||||||||
Total underwriting revenues | $ | 1,344,600 | $ | 64,678 | $ | (15,012) | $ | 1,394,266 | $ | 1,218,335 | $ | 73,768 | $ | (19,252) | $ | 1,272,851 | |||||||||||||||||||||||||||||||
Underwriting expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss adjustment expense | 731,722 | 42,442 | — | 774,164 | 698,064 | 47,270 | — | 745,334 | |||||||||||||||||||||||||||||||||||||||
Acquisition costs and other underwriting expenses | 252,444 | 16,201 | — | 268,645 | 193,521 | 15,569 | — | 209,090 | |||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 247,241 | 12,382 | (15,012) | 244,611 | 258,583 | 24,533 | (19,252) | 263,864 | |||||||||||||||||||||||||||||||||||||||
Total underwriting expenses | $ | 1,231,407 | $ | 71,025 | $ | (15,012) | $ | 1,287,420 | $ | 1,150,168 | $ | 87,372 | $ | (19,252) | $ | 1,218,288 | |||||||||||||||||||||||||||||||
Underwriting income (loss) | $ | 113,193 | $ | (6,347) | $ | — | $ | 106,846 | $ | 68,167 | $ | (13,604) | $ | — | $ | 54,563 | |||||||||||||||||||||||||||||||
Net investment income | 28,019 | 2,254 | (1,369) | 28,904 | 33,451 | 2,160 | (1,871) | 33,740 | |||||||||||||||||||||||||||||||||||||||
Net gain (loss) on investments | 6,736 | 13,103 | — | 19,839 | 1,718 | (137) | — | 1,581 | |||||||||||||||||||||||||||||||||||||||
Interest expense | (11,292) | (1,369) | 1,369 | (11,292) | (12,898) | (1,871) | 1,871 | (12,898) | |||||||||||||||||||||||||||||||||||||||
Income (loss) before provision (benefit) for income taxes | $ | 136,656 | $ | 7,641 | $ | — | $ | 144,297 | $ | 90,438 | $ | (13,452) | $ | — | $ | 76,986 | |||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 26,687 | 741 | — | 27,428 | 19,284 | (2,537) | — | 16,747 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 109,969 | $ | 6,900 | $ | — | $ | 116,869 | $ | 71,154 | $ | (10,915) | $ | — | $ | 60,239 | |||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interest | — | (6,900) | — | (6,900) | — | 10,915 | — | 10,915 | |||||||||||||||||||||||||||||||||||||||
Net income attributable to NGHC | $ | 109,969 | $ | — | $ | — | $ | 109,969 | $ | 71,154 | $ | — | $ | — | $ | 71,154 | |||||||||||||||||||||||||||||||
Dividends on preferred stock | (7,875) | — | — | (7,875) | (7,875) | — | — | (7,875) | |||||||||||||||||||||||||||||||||||||||
Net income attributable to NGHC common stockholders | $ | 102,094 | $ | — | $ | — | $ | 102,094 | $ | 63,279 | $ | — | $ | — | $ | 63,279 |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
NGHC | Reciprocal Exchanges | Eliminations | Total | NGHC | Reciprocal Exchanges | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||
Underwriting ratios: | (amounts in thousands, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||
Net loss ratio | 65.1 | % | 78.5 | % | — | % | 65.7 | % | 70.1 | % | 82.8 | % | — | % | 70.7 | % | |||||||||||||||||||||||||||||||
Net operating expense ratio (non-GAAP) | 24.5 | % | 33.3 | % | — | % | 24.9 | % | 23.1 | % | 41.1 | % | — | % | 24.1 | % | |||||||||||||||||||||||||||||||
Net combined ratio (non-GAAP) | 89.6 | % | 111.8 | % | — | % | 90.6 | % | 93.2 | % | 123.9 | % | — | % | 94.8 | % | |||||||||||||||||||||||||||||||
Underwriting ratios before amortization and impairment (non-GAAP): | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss ratio | 65.1 | % | 78.5 | % | — | % | 65.7 | % | 70.1 | % | 82.8 | % | — | % | 70.7 | % | |||||||||||||||||||||||||||||||
Net operating expense ratio before amortization and impairment (non-GAAP) | 24.1 | % | 33.2 | % | — | % | 24.6 | % | 22.4 | % | 41.0 | % | — | % | 23.4 | % | |||||||||||||||||||||||||||||||
Net combined ratio before amortization and impairment (non-GAAP) | 89.2 | % | 111.7 | % | — | % | 90.3 | % | 92.5 | % | 123.8 | % | — | % | 94.1 | % | |||||||||||||||||||||||||||||||
Reconciliation of net operating expense ratio (non-GAAP): | |||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | $ | 1,242,699 | $ | 72,394 | $ | (16,381) | $ | 1,298,712 | $ | 1,163,066 | $ | 89,243 | $ | (21,123) | $ | 1,231,186 | |||||||||||||||||||||||||||||||
Less: Loss and loss adjustment expense | 731,722 | 42,442 | — | 774,164 | 698,064 | 47,270 | — | 745,334 | |||||||||||||||||||||||||||||||||||||||
Less: Interest expense | 11,292 | 1,369 | (1,369) | 11,292 | 12,898 | 1,871 | (1,871) | 12,898 | |||||||||||||||||||||||||||||||||||||||
Less: Ceding commission income | 21,772 | 8,952 | — | 30,724 | 42,521 | 15,066 | — | 57,587 | |||||||||||||||||||||||||||||||||||||||
Less: Service and fee income | 198,353 | 1,628 | (15,012) | 184,969 | 179,293 | 1,585 | (19,252) | 161,626 | |||||||||||||||||||||||||||||||||||||||
Less: Other general and administrative expenses | 3,573 | — | — | 3,573 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net operating expense | $ | 275,987 | $ | 18,003 | $ | — | $ | 293,990 | $ | 230,290 | $ | 23,451 | $ | — | $ | 253,741 | |||||||||||||||||||||||||||||||
Net earned premium | $ | 1,124,475 | $ | 54,098 | $ | — | $ | 1,178,573 | $ | 996,521 | $ | 57,117 | $ | — | $ | 1,053,638 | |||||||||||||||||||||||||||||||
Net operating expense ratio (non-GAAP) | 24.5 | % | 33.3 | % | — | % | 24.9 | % | 23.1 | % | 41.1 | % | — | % | 24.1 | % | |||||||||||||||||||||||||||||||
Net operating expense | $ | 275,987 | $ | 18,003 | $ | — | $ | 293,990 | $ | 230,290 | $ | 23,451 | $ | — | $ | 253,741 | |||||||||||||||||||||||||||||||
Less: Non-cash amortization of intangible assets | 4,427 | 33 | — | 4,460 | 6,788 | 18 | — | 6,806 | |||||||||||||||||||||||||||||||||||||||
Net operating expense before amortization and impairment | $ | 271,560 | $ | 17,970 | $ | — | $ | 289,530 | $ | 223,502 | $ | 23,433 | $ | — | $ | 246,935 | |||||||||||||||||||||||||||||||
Net earned premium | $ | 1,124,475 | $ | 54,098 | $ | — | $ | 1,178,573 | $ | 996,521 | $ | 57,117 | $ | — | $ | 1,053,638 | |||||||||||||||||||||||||||||||
Net operating expense ratio before amortization and impairment (non-GAAP) | 24.1 | % | 33.2 | % | — | % | 24.6 | % | 22.4 | % | 41.0 | % | — | % | 23.4 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
NGHC | Reciprocal Exchanges | Eliminations | Total | NGHC | Reciprocal Exchanges | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||
Underwriting revenues: | (amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Gross premium written | $ | 4,002,606 | $ | 288,676 | $ | — | $ | 4,291,282 | $ | 3,913,861 | $ | 344,982 | $ | — | $ | 4,258,843 | |||||||||||||||||||||||||||||||
Ceded premiums | (654,893) | (146,622) | — | (801,515) | (891,655) | (172,522) | — | (1,064,177) | |||||||||||||||||||||||||||||||||||||||
Net premium written | $ | 3,347,713 | $ | 142,054 | $ | — | $ | 3,489,767 | $ | 3,022,206 | $ | 172,460 | $ | — | $ | 3,194,666 | |||||||||||||||||||||||||||||||
Change in unearned premium | (194,848) | 24,427 | — | (170,421) | (123,165) | (23,055) | — | (146,220) | |||||||||||||||||||||||||||||||||||||||
Net earned premium | $ | 3,152,865 | $ | 166,481 | $ | — | $ | 3,319,346 | $ | 2,899,041 | $ | 149,405 | $ | — | $ | 3,048,446 | |||||||||||||||||||||||||||||||
Ceding commission income | 93,893 | 33,776 | — | 127,669 | 136,867 | 50,446 | — | 187,313 | |||||||||||||||||||||||||||||||||||||||
Service and fee income | 581,533 | 5,121 | (41,652) | 545,002 | 525,730 | 4,471 | (54,160) | 476,041 | |||||||||||||||||||||||||||||||||||||||
Total underwriting revenues | $ | 3,828,291 | $ | 205,378 | $ | (41,652) | $ | 3,992,017 | $ | 3,561,638 | $ | 204,322 | $ | (54,160) | $ | 3,711,800 | |||||||||||||||||||||||||||||||
Underwriting expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss adjustment expense | 1,951,792 | 114,816 | — | 2,066,608 | 1,988,094 | 124,584 | — | 2,112,678 | |||||||||||||||||||||||||||||||||||||||
Acquisition costs and other underwriting expenses | 689,467 | 36,798 | — | 726,265 | 582,805 | 32,329 | — | 615,134 | |||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 765,438 | 50,803 | (41,652) | 774,589 | 746,243 | 67,642 | (54,160) | 759,725 | |||||||||||||||||||||||||||||||||||||||
Total underwriting expenses | $ | 3,406,697 | $ | 202,417 | $ | (41,652) | $ | 3,567,462 | $ | 3,317,142 | $ | 224,555 | $ | (54,160) | $ | 3,487,537 | |||||||||||||||||||||||||||||||
Underwriting income (loss) | $ | 421,594 | $ | 2,961 | $ | — | $ | 424,555 | $ | 244,496 | $ | (20,233) | $ | — | $ | 224,263 | |||||||||||||||||||||||||||||||
Net investment income | 88,289 | 6,449 | (4,416) | 90,322 | 103,683 | 6,454 | (7,821) | 102,316 | |||||||||||||||||||||||||||||||||||||||
Net gain (loss) on investments | 6,179 | 11,957 | — | 18,136 | (2,790) | (837) | — | (3,627) | |||||||||||||||||||||||||||||||||||||||
Interest expense | (34,851) | (4,416) | 4,416 | (34,851) | (38,822) | (7,821) | 7,821 | (38,822) | |||||||||||||||||||||||||||||||||||||||
Income (loss) before provision (benefit) for income taxes | $ | 481,211 | $ | 16,951 | $ | — | $ | 498,162 | $ | 306,567 | $ | (22,437) | $ | — | $ | 284,130 | |||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 103,909 | 2,198 | — | 106,107 | 65,779 | (4,285) | — | 61,494 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 377,302 | $ | 14,753 | $ | — | $ | 392,055 | $ | 240,788 | $ | (18,152) | $ | — | $ | 222,636 | |||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interest | — | (14,753) | — | (14,753) | — | 18,152 | — | 18,152 | |||||||||||||||||||||||||||||||||||||||
Net income attributable to NGHC | $ | 377,302 | $ | — | $ | — | $ | 377,302 | $ | 240,788 | $ | — | $ | — | $ | 240,788 | |||||||||||||||||||||||||||||||
Dividends on preferred stock | (24,675) | — | — | (24,675) | (24,675) | — | — | (24,675) | |||||||||||||||||||||||||||||||||||||||
Net income attributable to NGHC common stockholders | $ | 352,627 | $ | — | $ | — | $ | 352,627 | $ | 216,113 | $ | — | $ | — | $ | 216,113 |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
NGHC | Reciprocal Exchanges | Eliminations | Total | NGHC | Reciprocal Exchanges | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||
Underwriting ratios: | (amounts in thousands, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||
Net loss ratio | 61.9 | % | 69.0 | % | — | % | 62.3 | % | 68.6 | % | 83.4 | % | — | % | 69.3 | % | |||||||||||||||||||||||||||||||
Net operating expense ratio (non-GAAP) | 24.6 | % | 29.3 | % | — | % | 24.8 | % | 23.0 | % | 30.2 | % | — | % | 23.3 | % | |||||||||||||||||||||||||||||||
Net combined ratio (non-GAAP) | 86.5 | % | 98.3 | % | — | % | 87.1 | % | 91.6 | % | 113.6 | % | — | % | 92.6 | % | |||||||||||||||||||||||||||||||
Underwriting ratios before amortization and impairment (non-GAAP): | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss ratio | 61.9 | % | 69.0 | % | — | % | 62.3 | % | 68.6 | % | 83.4 | % | — | % | 69.3 | % | |||||||||||||||||||||||||||||||
Net operating expense ratio before amortization and impairment (non-GAAP) | 24.1 | % | 29.2 | % | — | % | 24.3 | % | 22.3 | % | 30.1 | % | — | % | 22.6 | % | |||||||||||||||||||||||||||||||
Net combined ratio before amortization and impairment (non-GAAP) | 86.0 | % | 98.2 | % | — | % | 86.6 | % | 90.9 | % | 113.5 | % | — | % | 91.9 | % | |||||||||||||||||||||||||||||||
Reconciliation of net operating expense ratio (non-GAAP): | |||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | $ | 3,441,548 | $ | 206,833 | $ | (46,068) | $ | 3,602,313 | $ | 3,355,964 | $ | 232,376 | $ | (61,981) | $ | 3,526,359 | |||||||||||||||||||||||||||||||
Less: Loss and loss adjustment expense | 1,951,792 | 114,816 | — | 2,066,608 | 1,988,094 | 124,584 | — | 2,112,678 | |||||||||||||||||||||||||||||||||||||||
Less: Interest expense | 34,851 | 4,416 | (4,416) | 34,851 | 38,822 | 7,821 | (7,821) | 38,822 | |||||||||||||||||||||||||||||||||||||||
Less: Ceding commission income | 93,893 | 33,776 | — | 127,669 | 136,867 | 50,446 | — | 187,313 | |||||||||||||||||||||||||||||||||||||||
Less: Service and fee income | 581,533 | 5,121 | (41,652) | 545,002 | 525,730 | 4,471 | (54,160) | 476,041 | |||||||||||||||||||||||||||||||||||||||
Less: Other general and administrative expenses | 3,573 | — | — | 3,573 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net operating expense | $ | 775,906 | $ | 48,704 | $ | — | $ | 824,610 | $ | 666,451 | $ | 45,054 | $ | — | $ | 711,505 | |||||||||||||||||||||||||||||||
Net earned premium | $ | 3,152,865 | $ | 166,481 | $ | — | $ | 3,319,346 | $ | 2,899,041 | $ | 149,405 | $ | — | $ | 3,048,446 | |||||||||||||||||||||||||||||||
Net operating expense ratio (non-GAAP) | 24.6 | % | 29.3 | % | — | % | 24.8 | % | 23.0 | % | 30.2 | % | — | % | 23.3 | % | |||||||||||||||||||||||||||||||
Net operating expense | $ | 775,906 | $ | 48,704 | $ | — | $ | 824,610 | $ | 666,451 | $ | 45,054 | $ | — | $ | 711,505 | |||||||||||||||||||||||||||||||
Less: Non-cash amortization of intangible assets | 16,272 | 93 | — | 16,365 | 21,093 | 41 | — | 21,134 | |||||||||||||||||||||||||||||||||||||||
Net operating expense before amortization and impairment | $ | 759,634 | $ | 48,611 | $ | — | $ | 808,245 | $ | 645,358 | $ | 45,013 | $ | — | $ | 690,371 | |||||||||||||||||||||||||||||||
Net earned premium | $ | 3,152,865 | $ | 166,481 | $ | — | $ | 3,319,346 | $ | 2,899,041 | $ | 149,405 | $ | — | $ | 3,048,446 | |||||||||||||||||||||||||||||||
Net operating expense ratio before amortization and impairment (non-GAAP) | 24.1 | % | 29.2 | % | — | % | 24.3 | % | 22.3 | % | 30.1 | % | — | % | 22.6 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||
Finance and processing fees | $ | 34,783 | $ | 34,437 | $ | 346 | 1.0 | % | ||||||||||||||||||
Commission revenue | 33,635 | 37,686 | (4,051) | (10.7) | % | |||||||||||||||||||||
Group health administrative fees | 31,147 | 25,808 | 5,339 | 20.7 | % | |||||||||||||||||||||
Installment fees | 26,789 | 23,464 | 3,325 | 14.2 | % | |||||||||||||||||||||
Late payment fees | 8,340 | 9,323 | (983) | (10.5) | % | |||||||||||||||||||||
Other service and fee income | 50,275 | 30,908 | 19,367 | 62.7 | % | |||||||||||||||||||||
Total | $ | 184,969 | $ | 161,626 | $ | 23,343 | 14.4 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||
Commission revenue | $ | 124,288 | $ | 125,290 | $ | (1,002) | (0.8) | % | ||||||||||||||||||
Finance and processing fees | 103,434 | 101,928 | 1,506 | 1.5 | % | |||||||||||||||||||||
Group health administrative fees | 91,658 | 73,861 | 17,797 | 24.1 | % | |||||||||||||||||||||
Installment fees | 78,282 | 72,782 | 5,500 | 7.6 | % | |||||||||||||||||||||
Late payment fees | 23,946 | 26,310 | (2,364) | (9.0) | % | |||||||||||||||||||||
Other service and fee income | 123,394 | 75,870 | 47,524 | 62.6 | % | |||||||||||||||||||||
Total | $ | 545,002 | $ | 476,041 | $ | 68,961 | 14.5 | % |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
NGHC | Reciprocal Exchanges | Eliminations | Total | NGHC | Reciprocal Exchanges | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||
Underwriting revenues: | (amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Gross premium written | $ | 1,178,803 | $ | 98,387 | $ | — | $ | 1,277,190 | $ | 1,154,335 | $ | 118,267 | $ | — | $ | 1,272,602 | |||||||||||||||||||||||||||||||
Ceded premiums | (117,368) | (68,896) | — | (186,264) | (334,365) | (50,982) | — | (385,347) | |||||||||||||||||||||||||||||||||||||||
Net premium written | $ | 1,061,435 | $ | 29,491 | $ | — | $ | 1,090,926 | $ | 819,970 | $ | 67,285 | $ | — | $ | 887,255 | |||||||||||||||||||||||||||||||
Change in unearned premium | (112,364) | 24,607 | — | (87,757) | 7,648 | (10,168) | — | (2,520) | |||||||||||||||||||||||||||||||||||||||
Net earned premium | $ | 949,071 | $ | 54,098 | $ | — | $ | 1,003,169 | $ | 827,618 | $ | 57,117 | $ | — | $ | 884,735 | |||||||||||||||||||||||||||||||
Ceding commission income | 21,567 | 8,952 | — | 30,519 | 40,260 | 15,066 | — | 55,326 | |||||||||||||||||||||||||||||||||||||||
Service and fee income | 109,756 | 1,628 | (15,012) | 96,372 | 115,557 | 1,585 | (19,252) | 97,890 | |||||||||||||||||||||||||||||||||||||||
Total underwriting revenues | $ | 1,080,394 | $ | 64,678 | $ | (15,012) | $ | 1,130,060 | $ | 983,435 | $ | 73,768 | $ | (19,252) | $ | 1,037,951 | |||||||||||||||||||||||||||||||
Underwriting expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss adjustment expense | 653,774 | 42,442 | — | 696,216 | 627,452 | 47,270 | — | 674,722 | |||||||||||||||||||||||||||||||||||||||
Acquisition costs and other underwriting expenses | 173,166 | 16,201 | — | 189,367 | 146,307 | 15,569 | — | 161,876 | |||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 184,776 | 12,382 | (15,012) | 182,146 | 190,286 | 24,533 | (19,252) | 195,567 | |||||||||||||||||||||||||||||||||||||||
Total underwriting expenses | $ | 1,011,716 | $ | 71,025 | $ | (15,012) | $ | 1,067,729 | $ | 964,045 | $ | 87,372 | $ | (19,252) | $ | 1,032,165 | |||||||||||||||||||||||||||||||
Underwriting income (loss) | $ | 68,678 | $ | (6,347) | $ | — | $ | 62,331 | $ | 19,390 | $ | (13,604) | $ | — | $ | 5,786 |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
NGHC | Reciprocal Exchanges | Eliminations | Total | NGHC | Reciprocal Exchanges | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||
Underwriting ratios: | (amounts in thousands, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||
Net loss ratio | 68.9 | % | 78.5 | % | — | % | 69.4 | % | 75.8 | % | 82.8 | % | — | % | 76.3 | % | |||||||||||||||||||||||||||||||
Net operating expense ratio (non-GAAP) | 23.9 | % | 33.3 | % | — | % | 24.4 | % | 21.8 | % | 41.1 | % | — | % | 23.1 | % | |||||||||||||||||||||||||||||||
Net combined ratio (non-GAAP) | 92.8 | % | 111.8 | % | — | % | 93.8 | % | 97.6 | % | 123.9 | % | — | % | 99.4 | % | |||||||||||||||||||||||||||||||
Underwriting ratios before amortization and impairment (non-GAAP): | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss ratio | 68.9 | % | 78.5 | % | — | % | 69.4 | % | 75.8 | % | 82.8 | % | — | % | 76.3 | % | |||||||||||||||||||||||||||||||
Net operating expense ratio before amortization and impairment (non-GAAP) | 23.5 | % | 33.2 | % | — | % | 24.1 | % | 21.2 | % | 41.0 | % | — | % | 22.5 | % | |||||||||||||||||||||||||||||||
Net combined ratio before amortization and impairment (non-GAAP) | 92.4 | % | 111.7 | % | — | % | 93.5 | % | 97.0 | % | 123.8 | % | — | % | 98.8 | % | |||||||||||||||||||||||||||||||
Reconciliation of net operating expense ratio (non-GAAP): | |||||||||||||||||||||||||||||||||||||||||||||||
Total underwriting expenses | $ | 1,011,716 | $ | 71,025 | $ | (15,012) | $ | 1,067,729 | $ | 964,045 | $ | 87,372 | $ | (19,252) | $ | 1,032,165 | |||||||||||||||||||||||||||||||
Less: Loss and loss adjustment expense | 653,774 | 42,442 | — | 696,216 | 627,452 | 47,270 | — | 674,722 | |||||||||||||||||||||||||||||||||||||||
Less: Ceding commission income | 21,567 | 8,952 | — | 30,519 | 40,260 | 15,066 | — | 55,326 | |||||||||||||||||||||||||||||||||||||||
Less: Service and fee income | 109,756 | 1,628 | (15,012) | 96,372 | 115,557 | 1,585 | (19,252) | 97,890 | |||||||||||||||||||||||||||||||||||||||
Net operating expense | $ | 226,619 | $ | 18,003 | $ | — | $ | 244,622 | $ | 180,776 | $ | 23,451 | $ | — | $ | 204,227 | |||||||||||||||||||||||||||||||
Net earned premium | $ | 949,071 | $ | 54,098 | $ | — | $ | 1,003,169 | $ | 827,618 | $ | 57,117 | $ | — | $ | 884,735 | |||||||||||||||||||||||||||||||
Net operating expense ratio (non-GAAP) | 23.9 | % | 33.3 | % | — | % | 24.4 | % | 21.8 | % | 41.1 | % | — | % | 23.1 | % | |||||||||||||||||||||||||||||||
Net operating expense | $ | 226,619 | $ | 18,003 | $ | — | $ | 244,622 | $ | 180,776 | $ | 23,451 | $ | — | $ | 204,227 | |||||||||||||||||||||||||||||||
Less: Non-cash amortization of intangible assets | 3,140 | 33 | — | 3,173 | 5,257 | 18 | — | 5,275 | |||||||||||||||||||||||||||||||||||||||
Net operating expense before amortization and impairment | $ | 223,479 | $ | 17,970 | $ | — | $ | 241,449 | $ | 175,519 | $ | 23,433 | $ | — | $ | 198,952 | |||||||||||||||||||||||||||||||
Net earned premium | $ | 949,071 | $ | 54,098 | $ | — | $ | 1,003,169 | $ | 827,618 | $ | 57,117 | $ | — | $ | 884,735 | |||||||||||||||||||||||||||||||
Net operating expense ratio before amortization and impairment (non-GAAP) | 23.5 | % | 33.2 | % | — | % | 24.1 | % | 21.2 | % | 41.0 | % | — | % | 22.5 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
NGHC | Reciprocal Exchanges | Eliminations | Total | NGHC | Reciprocal Exchanges | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||
Underwriting revenues: | (amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Gross premium written | $ | 3,429,987 | $ | 288,676 | $ | — | $ | 3,718,663 | $ | 3,321,090 | $ | 344,982 | $ | — | $ | 3,666,072 | |||||||||||||||||||||||||||||||
Ceded premiums | (593,032) | (146,622) | — | (739,654) | (799,121) | (172,522) | — | (971,643) | |||||||||||||||||||||||||||||||||||||||
Net premium written | $ | 2,836,955 | $ | 142,054 | $ | — | $ | 2,979,009 | $ | 2,521,969 | $ | 172,460 | $ | — | $ | 2,694,429 | |||||||||||||||||||||||||||||||
Change in unearned premium | (192,997) | 24,427 | — | (168,570) | (119,460) | (23,055) | — | (142,515) | |||||||||||||||||||||||||||||||||||||||
Net earned premium | $ | 2,643,958 | $ | 166,481 | $ | — | $ | 2,810,439 | $ | 2,402,509 | $ | 149,405 | $ | — | $ | 2,551,914 | |||||||||||||||||||||||||||||||
Ceding commission income | 92,657 | 33,776 | — | 126,433 | 128,087 | 50,446 | — | 178,533 | |||||||||||||||||||||||||||||||||||||||
Service and fee income | 332,344 | 5,121 | (41,652) | 295,813 | 348,045 | 4,471 | (54,160) | 298,356 | |||||||||||||||||||||||||||||||||||||||
Total underwriting revenues | $ | 3,068,959 | $ | 205,378 | $ | (41,652) | $ | 3,232,685 | $ | 2,878,641 | $ | 204,322 | $ | (54,160) | $ | 3,028,803 | |||||||||||||||||||||||||||||||
Underwriting expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss adjustment expense | 1,725,588 | 114,816 | — | 1,840,404 | 1,746,409 | 124,584 | — | 1,870,993 | |||||||||||||||||||||||||||||||||||||||
Acquisition costs and other underwriting expenses | 474,824 | 36,798 | — | 511,622 | 429,742 | 32,329 | — | 462,071 | |||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 585,230 | 50,803 | (41,652) | 594,381 | 558,016 | 67,642 | (54,160) | 571,498 | |||||||||||||||||||||||||||||||||||||||
Total underwriting expenses | $ | 2,785,642 | $ | 202,417 | $ | (41,652) | $ | 2,946,407 | $ | 2,734,167 | $ | 224,555 | $ | (54,160) | $ | 2,904,562 | |||||||||||||||||||||||||||||||
Underwriting income (loss) | $ | 283,317 | $ | 2,961 | $ | — | $ | 286,278 | $ | 144,474 | $ | (20,233) | $ | — | $ | 124,241 |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
NGHC | Reciprocal Exchanges | Eliminations | Total | NGHC | Reciprocal Exchanges | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||
Underwriting ratios: | (amounts in thousands, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||
Net loss ratio | 65.3 | % | 69.0 | % | — | % | 65.5 | % | 72.7 | % | 83.4 | % | — | % | 73.3 | % | |||||||||||||||||||||||||||||||
Net operating expense ratio (non-GAAP) | 24.0 | % | 29.3 | % | — | % | 24.3 | % | 21.3 | % | 30.2 | % | — | % | 21.8 | % | |||||||||||||||||||||||||||||||
Net combined ratio (non-GAAP) | 89.3 | % | 98.3 | % | — | % | 89.8 | % | 94.0 | % | 113.6 | % | — | % | 95.1 | % | |||||||||||||||||||||||||||||||
Underwriting ratios before amortization and impairment (non-GAAP): | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss ratio | 65.3 | % | 69.0 | % | — | % | 65.5 | % | 72.7 | % | 83.4 | % | — | % | 73.3 | % | |||||||||||||||||||||||||||||||
Net operating expense ratio before amortization and impairment (non-GAAP) | 23.6 | % | 29.2 | % | — | % | 23.9 | % | 20.6 | % | 30.1 | % | — | % | 21.2 | % | |||||||||||||||||||||||||||||||
Net combined ratio before amortization and impairment (non-GAAP) | 88.9 | % | 98.2 | % | — | % | 89.4 | % | 93.3 | % | 113.5 | % | — | % | 94.5 | % | |||||||||||||||||||||||||||||||
Reconciliation of net operating expense ratio (non-GAAP): | |||||||||||||||||||||||||||||||||||||||||||||||
Total underwriting expenses | $ | 2,785,642 | $ | 202,417 | $ | (41,652) | $ | 2,946,407 | $ | 2,734,167 | $ | 224,555 | $ | (54,160) | $ | 2,904,562 | |||||||||||||||||||||||||||||||
Less: Loss and loss adjustment expense | 1,725,588 | 114,816 | — | 1,840,404 | 1,746,409 | 124,584 | — | 1,870,993 | |||||||||||||||||||||||||||||||||||||||
Less: Ceding commission income | 92,657 | 33,776 | — | 126,433 | 128,087 | 50,446 | — | 178,533 | |||||||||||||||||||||||||||||||||||||||
Less: Service and fee income | 332,344 | 5,121 | (41,652) | 295,813 | 348,045 | 4,471 | (54,160) | 298,356 | |||||||||||||||||||||||||||||||||||||||
Net operating expense | $ | 635,053 | $ | 48,704 | $ | — | $ | 683,757 | $ | 511,626 | $ | 45,054 | $ | — | $ | 556,680 | |||||||||||||||||||||||||||||||
Net earned premium | $ | 2,643,958 | $ | 166,481 | $ | — | $ | 2,810,439 | $ | 2,402,509 | $ | 149,405 | $ | — | $ | 2,551,914 | |||||||||||||||||||||||||||||||
Net operating expense ratio (non-GAAP) | 24.0 | % | 29.3 | % | — | % | 24.3 | % | 21.3 | % | 30.2 | % | — | % | 21.8 | % | |||||||||||||||||||||||||||||||
Net operating expense | $ | 635,053 | $ | 48,704 | $ | — | $ | 683,757 | $ | 511,626 | $ | 45,054 | $ | — | $ | 556,680 | |||||||||||||||||||||||||||||||
Less: Non-cash amortization of intangible assets | 12,368 | 93 | — | 12,461 | 16,154 | 41 | — | 16,195 | |||||||||||||||||||||||||||||||||||||||
Net operating expense before amortization and impairment | $ | 622,685 | $ | 48,611 | $ | — | $ | 671,296 | $ | 495,472 | $ | 45,013 | $ | — | $ | 540,485 | |||||||||||||||||||||||||||||||
Net earned premium | $ | 2,643,958 | $ | 166,481 | $ | — | $ | 2,810,439 | $ | 2,402,509 | $ | 149,405 | $ | — | $ | 2,551,914 | |||||||||||||||||||||||||||||||
Net operating expense ratio before amortization and impairment (non-GAAP) | 23.6 | % | 29.2 | % | — | % | 23.9 | % | 20.6 | % | 30.1 | % | — | % | 21.2 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||
Finance and processing fees | $ | 32,237 | $ | 33,637 | $ | (1,400) | (4.2) | % | ||||||||||||||||||
Installment fees | 26,789 | 23,464 | 3,325 | 14.2 | % | |||||||||||||||||||||
Commission revenue | 11,799 | 21,333 | (9,534) | (44.7) | % | |||||||||||||||||||||
Late payment fees | 8,324 | 9,251 | (927) | (10.0) | % | |||||||||||||||||||||
Other service and fee income | 17,223 | 10,205 | 7,018 | 68.8 | % | |||||||||||||||||||||
Total | $ | 96,372 | $ | 97,890 | $ | (1,518) | (1.6) | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||
Finance and processing fees | $ | 96,212 | $ | 98,218 | $ | (2,006) | (2.0) | % | ||||||||||||||||||
Installment fees | 78,282 | 72,782 | 5,500 | 7.6 | % | |||||||||||||||||||||
Commission revenue | 48,466 | 68,193 | (19,727) | (28.9) | % | |||||||||||||||||||||
Late payment fees | 23,905 | 26,061 | (2,156) | (8.3) | % | |||||||||||||||||||||
Other service and fee income | 48,948 | 33,102 | 15,846 | 47.9 | % | |||||||||||||||||||||
Total | $ | 295,813 | $ | 298,356 | $ | (2,543) | (0.9) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Underwriting revenues: | (amounts in thousands, except percentages) | ||||||||||||||||||||||
Gross premium written | $ | 195,937 | $ | 162,555 | $ | 572,619 | $ | 592,771 | |||||||||||||||
Ceded premiums | (21,607) | (15,206) | (61,861) | (92,534) | |||||||||||||||||||
Net premium written | $ | 174,330 | $ | 147,349 | $ | 510,758 | $ | 500,237 | |||||||||||||||
Change in unearned premium | 1,074 | 21,554 | (1,851) | (3,705) | |||||||||||||||||||
Net earned premium | $ | 175,404 | $ | 168,903 | $ | 508,907 | $ | 496,532 | |||||||||||||||
Ceding commission income | 205 | 2,261 | 1,236 | 8,780 | |||||||||||||||||||
Service and fee income | 88,597 | 63,736 | 249,189 | 177,685 | |||||||||||||||||||
Total underwriting revenues | $ | 264,206 | $ | 234,900 | $ | 759,332 | $ | 682,997 | |||||||||||||||
Underwriting expenses: | |||||||||||||||||||||||
Loss and loss adjustment expense | 77,948 | 70,612 | 226,204 | 241,685 | |||||||||||||||||||
Acquisition costs and other underwriting expenses | 79,278 | 47,214 | 214,643 | 153,063 | |||||||||||||||||||
General and administrative expenses | 58,892 | 68,297 | 176,635 | 188,227 | |||||||||||||||||||
Total underwriting expenses | $ | 216,118 | $ | 186,123 | $ | 617,482 | $ | 582,975 | |||||||||||||||
Underwriting income | $ | 48,088 | $ | 48,777 | $ | 141,850 | $ | 100,022 | |||||||||||||||
Underwriting ratios: | |||||||||||||||||||||||
Net loss ratio | 44.4 | % | 41.8 | % | 44.4 | % | 48.7 | % | |||||||||||||||
Net operating expense ratio (non-GAAP) | 28.1 | % | 29.3 | % | 27.7 | % | 31.2 | % | |||||||||||||||
Net combined ratio (non-GAAP) | 72.5 | % | 71.1 | % | 72.1 | % | 79.9 | % | |||||||||||||||
Underwriting ratios before amortization and impairment (non-GAAP): | |||||||||||||||||||||||
Net loss ratio | 44.4 | % | 41.8 | % | 44.4 | % | 48.7 | % | |||||||||||||||
Net operating expense ratio before amortization and impairment (non-GAAP) | 27.4 | % | 28.4 | % | 26.9 | % | 30.2 | % | |||||||||||||||
Net combined ratio before amortization and impairment (non-GAAP) | 71.8 | % | 70.2 | % | 71.3 | % | 78.9 | % | |||||||||||||||
Reconciliation of net operating expense ratio (non-GAAP): | |||||||||||||||||||||||
Total underwriting expenses | $ | 216,118 | $ | 186,123 | $ | 617,482 | $ | 582,975 | |||||||||||||||
Less: Loss and loss adjustment expense | 77,948 | 70,612 | 226,204 | 241,685 | |||||||||||||||||||
Less: Ceding commission income | 205 | 2,261 | 1,236 | 8,780 | |||||||||||||||||||
Less: Service and fee income | 88,597 | 63,736 | 249,189 | 177,685 | |||||||||||||||||||
Net operating expense | $ | 49,368 | $ | 49,514 | $ | 140,853 | $ | 154,825 | |||||||||||||||
Net earned premium | $ | 175,404 | $ | 168,903 | $ | 508,907 | $ | 496,532 | |||||||||||||||
Net operating expense ratio (non-GAAP) | 28.1 | % | 29.3 | % | 27.7 | % | 31.2 | % | |||||||||||||||
Net operating expense | $ | 49,368 | $ | 49,514 | $ | 140,853 | $ | 154,825 | |||||||||||||||
Less: Non-cash amortization of intangible assets | 1,287 | 1,531 | 3,904 | 4,939 | |||||||||||||||||||
Net operating expense before amortization and impairment | $ | 48,081 | $ | 47,983 | $ | 136,949 | $ | 149,886 | |||||||||||||||
Net earned premium | $ | 175,404 | $ | 168,903 | $ | 508,907 | $ | 496,532 | |||||||||||||||
Net operating expense ratio before amortization and impairment (non-GAAP) | 27.4 | % | 28.4 | % | 26.9 | % | 30.2 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||
Group health administrative fees | $ | 31,147 | $ | 25,808 | $ | 5,339 | 20.7 | % | ||||||||||||||||||
Commission revenue | 21,836 | 16,353 | 5,483 | 33.5 | % | |||||||||||||||||||||
Finance and processing fees | 2,546 | 800 | 1,746 | 218.3 | % | |||||||||||||||||||||
Other service and fee income | 33,068 | 20,775 | 12,293 | 59.2 | % | |||||||||||||||||||||
Total | $ | 88,597 | $ | 63,736 | $ | 24,861 | 39.0 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||
Group health administrative fees | $ | 91,658 | $ | 73,861 | $ | 17,797 | 24.1 | % | ||||||||||||||||||
Commission revenue | 75,822 | 57,097 | 18,725 | 32.8 | % | |||||||||||||||||||||
Finance and processing fees | 7,222 | 3,710 | 3,512 | 94.7 | % | |||||||||||||||||||||
Other service and fee income | 74,487 | 43,017 | 31,470 | 73.2 | % | |||||||||||||||||||||
Total | $ | 249,189 | $ | 177,685 | $ | 71,504 | 40.2 | % |
September 30, 2020 | |||||||||||||||||||||||
NGHC | Reciprocal Exchanges | Eliminations | Total | ||||||||||||||||||||
ASSETS | (amounts in thousands) | ||||||||||||||||||||||
Investments: | |||||||||||||||||||||||
Debt securities, available-for-sale, at fair value | $ | 4,249,009 | $ | 300,124 | $ | — | $ | 4,549,133 | |||||||||||||||
Short-term investments | 479,848 | 30,952 | — | 510,800 | |||||||||||||||||||
Other investments | 390,438 | — | (107,572) | 282,866 | |||||||||||||||||||
Total investments | 5,119,295 | 331,076 | (107,572) | 5,342,799 | |||||||||||||||||||
Cash and cash equivalents | 187,866 | 416 | — | 188,282 | |||||||||||||||||||
Restricted cash and cash equivalents | 62,736 | 325 | — | 63,061 | |||||||||||||||||||
Accrued investment income | 63,865 | 1,397 | (39,127) | 26,135 | |||||||||||||||||||
Premiums and other receivables, net | 1,528,240 | 70,076 | — | 1,598,316 | |||||||||||||||||||
Deferred acquisition costs | 266,456 | 18,507 | — | 284,963 | |||||||||||||||||||
Reinsurance recoverable, net | 1,161,757 | 125,095 | — | 1,286,852 | |||||||||||||||||||
Prepaid reinsurance premiums | 353,363 | 105,597 | — | 458,960 | |||||||||||||||||||
Property and equipment, net | 382,696 | — | — | 382,696 | |||||||||||||||||||
Intangible assets, net | 342,884 | 3,090 | — | 345,974 | |||||||||||||||||||
Goodwill | 179,328 | — | — | 179,328 | |||||||||||||||||||
Prepaid and other assets | 62,578 | 4,312 | — | 66,890 | |||||||||||||||||||
Total assets | $ | 9,711,064 | $ | 659,891 | $ | (146,699) | $ | 10,224,256 | |||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Unpaid loss and loss adjustment expense reserves | $ | 2,688,969 | $ | 208,496 | $ | — | $ | 2,897,465 | |||||||||||||||
Unearned premiums and other revenue | 2,117,887 | 219,582 | — | 2,337,469 | |||||||||||||||||||
Reinsurance payable | 350,717 | 51,711 | — | 402,428 | |||||||||||||||||||
Accounts payable and accrued expenses | 412,540 | 46,731 | (39,127) | 420,144 | |||||||||||||||||||
Debt | 679,436 | 107,572 | (107,572) | 679,436 | |||||||||||||||||||
Other liabilities | 357,745 | 44,004 | — | 401,749 | |||||||||||||||||||
Total liabilities | $ | 6,607,294 | $ | 678,096 | $ | (146,699) | $ | 7,138,691 | |||||||||||||||
Stockholders’ equity: | |||||||||||||||||||||||
Preferred stock | $ | 450,000 | $ | — | $ | — | $ | 450,000 | |||||||||||||||
Common stock | 1,139 | — | — | 1,139 | |||||||||||||||||||
Treasury stock, at cost | (8,482) | — | — | (8,482) | |||||||||||||||||||
Additional paid-in capital | 1,073,288 | — | — | 1,073,288 | |||||||||||||||||||
Accumulated other comprehensive income | 194,953 | — | — | 194,953 | |||||||||||||||||||
Retained earnings | 1,392,872 | — | — | 1,392,872 | |||||||||||||||||||
Total National General Holdings Corp. stockholders’ equity | 3,103,770 | — | — | 3,103,770 | |||||||||||||||||||
Noncontrolling interest | — | (18,205) | — | (18,205) | |||||||||||||||||||
Total stockholders’ equity | $ | 3,103,770 | $ | (18,205) | $ | — | $ | 3,085,565 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 9,711,064 | $ | 659,891 | $ | (146,699) | $ | 10,224,256 |
September 30, 2020 | December 31, 2019 | Change | % Change | ||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||
Selected Assets: | |||||||||||||||||||||||
Premiums and other receivables, net | $ | 1,598,316 | $ | 1,428,948 | $ | 169,368 | 11.9 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | Change | % Change | ||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 451,320 | $ | 509,454 | $ | (58,134) | (11.4) | % | |||||||||||||||
Net cash used in investing activities | (301,499) | (438,607) | 137,108 | 31.3 | % | ||||||||||||||||||
Net cash used in financing activities | (62,941) | (73,989) | 11,048 | 14.9 | % | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (3,119) | 3,119 | 100.0 | % | ||||||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | $ | 86,880 | $ | (6,261) | $ | 93,141 |
Hypothetical Change in Interest Rates | Fair Value |
Estimated
Change in Fair Value |
Hypothetical Percentage
Increase (Decrease) in Stockholders’ Equity |
|||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
200 basis point increase | $ | 4,222,960 | $ | (326,173) | (8.4) | % | ||||||||||||||
100 basis point increase | 4,386,138 | (162,995) | (4.2) | |||||||||||||||||
No change | 4,549,133 | — | — | |||||||||||||||||
100 basis point decrease | 4,704,986 | 155,853 | 4.0 | |||||||||||||||||
200 basis point decrease | 4,789,873 | 240,740 | 6.2 |
Issuer Purchase of Equity Securities | ||||||||||||||||||||||||||
Period in 2020
|
Total number of shares purchased | Average price paid per share |
Total number of shares purchased as part of publicly announced program (1)
|
Approximate dollar value of shares that may yet be purchased under the program | ||||||||||||||||||||||
(amounts in thousands, except shares and per share data) | ||||||||||||||||||||||||||
April 1 - April 30 | — | $ | — | — | $ | 50,000 | ||||||||||||||||||||
May 1 - May 31 | 427,277 | $ | 18.33 | 427,277 | $ | 42,167 | ||||||||||||||||||||
June 1 - June 30 | 31,806 | $ | 19.96 | 31,806 | $ | 41,532 | ||||||||||||||||||||
July 1 - July 31 | — | $ | — | — | $ | 41,532 | ||||||||||||||||||||
August 1 - August 31 | — | $ | — | — | $ | 41,532 | ||||||||||||||||||||
September 1 - September 30 | — | $ | — | — | $ | 41,532 | ||||||||||||||||||||
Total | 459,083 | 459,083 |
Exhibit No. | Description | |||||||
2.1 * | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (filed herewith) | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document (filed herewith) | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith) | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith) | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith) | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith) | |||||||
104 | The Cover Page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, formatted in Inline XBRL contained in Exhibit 101. |
NATIONAL GENERAL HOLDINGS CORP. | ||||||||
October 29, 2020 | ||||||||
By: | /s/ Barry Karfunkel | |||||||
Name: Barry Karfunkel
Title: Chief Executive Officer
(Principal Executive Officer)
|
||||||||
By: | /s/ Michael Weiner | |||||||
Name: Michael Weiner
Title: Chief Financial Officer
(Principal Financial Officer)
|
1 Year National General Chart |
1 Month National General Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions