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GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The following tables show an analysis of goodwill and other intangible assets, net of foreign currency translation adjustments, included in goodwill and other intangible assets on the Company’s consolidated balance sheets:
|  | Goodwill and Other Intangible Assets |
| At December 31, | 2024 |  | 2023 |
| Goodwill, net | $ | 300,507 |  |  | $ | 300,542 |  |
| Other intangible assets, net | 403,625 |  |  | 474,810 |  |
| Total goodwill and other intangible assets | $ | 704,132 |  |  | $ | 775,352 |  |
Included in goodwill and other intangible assets on the Company’s consolidated balance sheet at December 31, 2024 was gross goodwill of $302.8 million (2023 - $302.8 million, 2022 - $213.2 million). Included in goodwill, net at December 31, 2024 was accumulated impairment losses of $2.3 million (2023 - $2.3 million). In addition, the Company has also recorded goodwill and other intangible assets included in investments in other ventures, under equity method on the Company’s consolidated balance sheets:
|  | Goodwill and Other Intangible Assets Included in Investments in Other Ventures, Under Equity Method |
| At December 31, | 2024 |  | 2023 |
| Goodwill, net | $ | 8,724 |  |  | $ | 10,808 |  |
| Other intangible assets, net | 207 |  |  | 7,260 |  |
| Total goodwill and other intangible assets | $ | 8,931 |  |  | $ | 18,068 |  |
Included in investments in other ventures, under equity method on the Company’s consolidated balance sheet at December 31, 2024 was gross goodwill of $13.2 million (2023 - $15.3 million, 2022 - $14.4 million). Included in gross goodwill and gross other intangible assets was a reduction of $2.1 million and $6.9 million, respectively, related to a change in the classification of the Company’s investment in TWFG, from investment in other ventures, under equity method to fair value, as a result of TWFG, Inc’s initial public offering in 2024. Included in goodwill, net at December 31, 2024, was accumulated impairment losses of $4.5 million (2023 - $4.5 million). Goodwill The following table shows a roll forward of goodwill included in goodwill and other intangible assets and goodwill included in investments in other ventures, under equity method on the Company’s consolidated balance sheets:
|  | Goodwill |
|  | Goodwill and Other Intangible Assets |  | Goodwill and Other Intangible Assets Included in Investments in Other Ventures, Under Equity Method |
| Balance at December 31, 2022, net | $ | 210,894 |  |  | $ | 9,903 |  |
| Acquired | 89,648 |  |  | 905 |  |
| Balance at December 31, 2023, net | 300,542 |  |  | 10,808 |  |
| Adjustments | — |  |  | (2,084) |  |
| Foreign currency translation | (35) |  |  | — |  |
| Balance at December 31, 2024, net | $ | 300,507 |  |  | $ | 8,724 |  |
Other Intangible Assets The gross carrying value, accumulated amortization and accumulated impairment losses by major category of other intangible assets included in goodwill and other intangible assets and investments in other ventures, under equity method on the Company’s consolidated balance sheets are shown below:
|  | Other Intangible Assets |
| At December 31, 2024 | Gross Carrying Value |  | Accumulated Amortization |  | Accumulated Impairment Losses |  |  |  | Net |
| Customer relationships and customer lists | $ | 530,528 |  |  | $ | (150,051) |  |  | $ | (1,403) |  |  |  |  | $ | 379,074 |  |
| Licenses (1) | 30,951 |  |  | — |  |  | (20,567) |  |  |  |  | 10,384 |  |
| Value of business acquired | 20,200 |  |  | (20,200) |  |  | — |  |  |  |  | — |  |
| Asset management contracts | 20,000 |  |  | (5,833) |  |  | — |  |  |  |  | 14,167 |  |
| Software | 12,230 |  |  | (12,230) |  |  | — |  |  |  |  | — |  |
| Patents and intellectual property | 4,500 |  |  | (1,875) |  |  | (2,625) |  |  |  |  | — |  |
| Covenants not-to-compete | 4,030 |  |  | (4,030) |  |  | — |  |  |  |  | — |  |
| Trademarks and trade names | 6,710 |  |  | (6,503) |  |  | — |  |  |  |  | 207 |  |
|  | $ | 629,149 |  |  | $ | (200,722) |  |  | $ | (24,595) |  |  |  |  | $ | 403,832 |  |
(1)Licenses is comprised of $10.4 million of indefinite lived other intangible assets, included in other intangible assets, net, as of December 31, 2024
|  | Other Intangible Assets |  |
| At December 31, 2023 | Gross Carrying Value |  | Accumulated Amortization |  | Accumulated Impairment Losses |  | Net |  |
| Customer relationships and customer lists | $ | 530,704 |  |  | $ | (101,659) |  |  | $ | (1,550) |  |  | $ | 427,495 |  |  |
| Licenses (1) | 37,663 |  |  | — |  |  | (6,653) |  |  | 31,010 |  |  |
| Value of business acquired | 20,200 |  |  | (20,200) |  |  | — |  |  | — |  |  |
| Asset management contracts | 20,000 |  |  | (833) |  |  | — |  |  | 19,167 |  |  |
| Software | 12,230 |  |  | (12,230) |  |  | — |  |  | — |  |  |
| Patents and intellectual property | 4,500 |  |  | (1,875) |  |  | (2,625) |  |  | — |  |  |
| Covenants not-to-compete | 4,030 |  |  | (4,030) |  |  | — |  |  | — |  |  |
| Trademarks and trade names | 6,710 |  |  | (2,312) |  |  | — |  |  | 4,398 |  |  |
|  | $ | 636,037 |  |  | $ | (143,139) |  |  | $ | (10,828) |  |  | $ | 482,070 |  |  |
(1)Licenses is comprised of $31.0 million of indefinite lived other intangible assets, included in other intangible assets, net, as of December 31, 2023 During 2023, the Company recorded $460.9 million of gross identifiable intangible assets identified in connection with the Validus Acquisition. See “Note 3. Acquisition of Validus” for additional information regarding the Validus Acquisition. The Company recorded amortization expense of $57.6 million and an impairment loss of $13.8 million related to other intangible assets during 2024 (2023 - $13.6 million and $Nil, respectively). In accordance with the Company’s established accounting policy, the Company reviewed its finite lived intangible assets for indicators of impairment throughout 2024, testing for impairment as appropriate. During 2024, the Company amalgamated and merged certain Validus Re entities into the Company. As a result of management’s review and analysis, it was determined that certain licenses associated with these entities were either cancelled upon amalgamation or merger, or that there was no new business written using these licenses in 2024, and no new business would be incepting using these licenses on a go forward basis. Accordingly, and in connection with the Company’s impairment testing performed, it was determined that the licenses associated with these acquired Validus entities, which was initially reflected as an indefinite lived intangible asset of $13.9 million at the time of the acquisition of Validus, should be written down to $Nil. The Company recorded an intangible asset impairment charge of $13.8 million during the year ended December 31, 2024. In performing the impairment assessment, the Company first assessed qualitative factors to determine whether it was necessary to perform a quantitative impairment test. Based on its qualitative assessment, the Company determined it was not more likely than not that the fair value of the goodwill and other intangible assets in question were less than their respective carrying amounts. The qualitative assessment included the following factors which the Company determined had not significantly deteriorated given specific facts and circumstances: macroeconomic conditions; industry and market conditions; costs factors; and overall financial performance. Other than the intangible assets impaired as noted above, and normal course amortization of intangible assets, in accordance with the Company’s established accounting policy, there were no adjustments to carried goodwill and other intangible assets during the year ended December 31, 2024. The remaining useful life of intangible assets with finite lives ranges from 0.2 to 13.8 years, with a weighted-average amortization period of 12.7 years. Expected amortization of the other intangible assets, including other intangible assets recorded in investments in other ventures, under equity method, is shown below:
|  | Other Intangibles Assets |  | Other Intangible Assets Included in Investments in Other Ventures, Under Equity Method |  | Total |
| 2025 | $ | 70,210 |  |  | $ | 24 |  |  | $ | 70,234 |  |
| 2026 | 61,622 |  |  | 24 |  |  | 61,646 |  |
| 2027 | 53,737 |  |  | 24 |  |  | 53,761 |  |
| 2028 | 42,661 |  |  | 24 |  |  | 42,685 |  |
| 2029 | 34,495 |  |  | 24 |  |  | 34,519 |  |
| 2030 and thereafter | 130,516 |  |  | 87 |  |  | 130,603 |  |
| Total remaining amortization expense | 393,241 |  |  | 207 |  |  | 393,448 |  |
| Indefinite lived | 10,384 |  |  | — |  |  | 10,384 |  |
| Total | $ | 403,625 |  |  | $ | 207 |  |  | $ | 403,832 |  |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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