XML 98 R26.htm IDEA: XBRL DOCUMENT
v3.3.0.814

Investments (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2015
Schedule of Amortized Cost and Estimated Fair Value of Investments | The amortized cost and estimated fair value of investments were as follows as of September 30, 2015 and December 31, 2014:
(Dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  |  | Other than temporary impairments recognized in AOCI (1) |
As of September 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury and agency obligations |  | $ | 95,312 |  |  | $ | 1,972 |  |  | $ | (9 | ) |  | $ | 97,275 |  |  | $ | — |
Obligations of states and political subdivisions |  |  | 232,532 |  |  |  | 3,538 |  |  |  | (670 | ) |  |  | 235,400 |  |  |  | — |
Mortgage-backed securities |  |  | 185,359 |  |  |  | 3,203 |  |  |  | (159 | ) |  |  | 188,403 |  |  |  | — |
Asset-backed securities |  |  | 278,059 |  |  |  | 1,391 |  |  |  | (616 | ) |  |  | 278,834 |  |  |  | (10 | )
Commercial mortgage-backed securities |  |  | 160,829 |  |  |  | 74 |  |  |  | (827 | ) |  |  | 160,076 |  |  |  | — |
Corporate bonds |  |  | 459,840 |  |  |  | 2,526 |  |  |  | (1,072 | ) |  |  | 461,294 |  |  |  | — |
Foreign corporate bonds |  |  | 127,261 |  |  |  | 573 |  |  |  | (231 | ) |  |  | 127,603 |  |  |  | — |
Total fixed maturities |  |  | 1,539,192 |  |  |  | 13,277 |  |  |  | (3,584 | ) |  |  | 1,548,885 |  |  |  | (10 | )
Common stock |  |  | 99,257 |  |  |  | 12,359 |  |  |  | (4,950 | ) |  |  | 106,666 |  |  |  | — |
Other invested assets |  |  | 31,137 |  |  |  | 2,418 |  |  |  | — |  |  |  | 33,555 |  |  |  | — |
Total |  | $ | 1,669,586 |  |  | $ | 28,054 |  |  | $ | (8,534 | ) |  | $ | 1,689,106 |  |  | $ | (10 | )
(1) | Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”).
(Dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  |  | Other than temporary impairments recognized in AOCI (2) |
As of December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury and agency obligations |  | $ | 78,569 |  |  | $ | 2,281 |  |  | $ | (83 | ) |  | $ | 80,767 |  |  | $ | — |
Obligations of states and political subdivisions |  |  | 188,452 |  |  |  | 3,718 |  |  |  | (697 | ) |  |  | 191,473 |  |  |  | — |
Mortgage-backed securities |  |  | 205,814 |  |  |  | 3,709 |  |  |  | (764 | ) |  |  | 208,759 |  |  |  | (4 | )
Asset-backed securities |  |  | 177,853 |  |  |  | 713 |  |  |  | (303 | ) |  |  | 178,263 |  |  |  | (13 | )
Commercial mortgage-backed securities |  |  | 133,984 |  |  |  | 21 |  |  |  | (847 | ) |  |  | 133,158 |  |  |  | — |
Corporate bonds |  |  | 380,704 |  |  |  | 3,421 |  |  |  | (709 | ) |  |  | 383,416 |  |  |  | — |
Foreign corporate bonds |  |  | 107,572 |  |  |  | 625 |  |  |  | (558 | ) |  |  | 107,639 |  |  |  | — |
Total fixed maturities |  |  | 1,272,948 |  |  |  | 14,488 |  |  |  | (3,961 | ) |  |  | 1,283,475 |  |  |  | (17 | )
Common stock |  |  | 99,297 |  |  |  | 25,689 |  |  |  | (2,938 | ) |  |  | 122,048 |  |  |  | — |
Other invested assets |  |  | 33,174 |  |  |  | 489 |  |  |  | — |  |  |  | 33,663 |  |  |  | — |
Total |  | $ | 1,405,419 |  |  | $ | 40,666 |  |  | $ | (6,899 | ) |  | $ | 1,439,186 |  |  | $ | (17 | )
(2) | Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”).
Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities | The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at September 30, 2015, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
(Dollars in thousands) |  | Amortized Cost |  |  | Estimated Fair Value |
Due in one year or less |  | $ | 142,231 |  |  | $ | 143,283 |
Due in one year through five years |  |  | 701,239 |  |  |  | 705,430 |
Due in five years through ten years |  |  | 49,986 |  |  |  | 50,812 |
Due in ten years through fifteen years |  |  | 3,799 |  |  |  | 4,277 |
Due after fifteen years |  |  | 17,690 |  |  |  | 17,770 |
Mortgage-backed securities |  |  | 185,359 |  |  |  | 188,403 |
Asset-backed securities |  |  | 278,059 |  |  |  | 278,834 |
Commercial mortgage-backed securities |  |  | 160,829 |  |  |  | 160,076 |
Total |  | $ | 1,539,192 |  |  | $ | 1,548,885 |
Summary of Securities With Gross Unrealized Losses | The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of September 30, 2015:
|  | Less than 12 months |  |  | 12 months or longer (1) |  |  | Total |
(Dollars in thousands) |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury and agency obligations |  | $ | — |  |  | $ | — |  |  | $ | 3,413 |  |  | $ | (9 | ) |  | $ | 3,413 |  |  | $ | (9 | )
Obligations of states and political subdivisions |  |  | 43,194 |  |  |  | (573 | ) |  |  | 9,510 |  |  |  | (97 | ) |  |  | 52,704 |  |  |  | (670 | )
Mortgage-backed securities |  |  | 23,004 |  |  |  | (114 | ) |  |  | 255 |  |  |  | (45 | ) |  |  | 23,259 |  |  |  | (159 | )
Asset-backed securities |  |  | 107,361 |  |  |  | (588 | ) |  |  | 4,531 |  |  |  | (28 | ) |  |  | 111,892 |  |  |  | (616 | )
Commercial mortgage-backed securities |  |  | 110,702 |  |  |  | (687 | ) |  |  | 15,453 |  |  |  | (140 | ) |  |  | 126,155 |  |  |  | (827 | )
Corporate bonds |  |  | 145,181 |  |  |  | (1,051 | ) |  |  | 2,974 |  |  |  | (21 | ) |  |  | 148,155 |  |  |  | (1,072 | )
Foreign corporate bonds |  |  | 42,441 |  |  |  | (231 | ) |  |  | — |  |  |  | — |  |  |  | 42,441 |  |  |  | (231 | )
Total fixed maturities |  |  | 471,883 |  |  |  | (3,244 | ) |  |  | 36,136 |  |  |  | (340 | ) |  |  | 508,019 |  |  |  | (3,584 | )
Common stock |  |  | 38,128 |  |  |  | (4,950 | ) |  |  | — |  |  |  | — |  |  |  | 38,128 |  |  |  | (4,950 | )
Total |  | $ | 510,011 |  |  | $ | (8,194 | ) |  | $ | 36,136 |  |  | $ | (340 | ) |  | $ | 546,147 |  |  | $ | (8,534 | )
(1) | Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired.
The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2014:
|  | Less than 12 months |  |  | 12 months or longer (1) |  |  | Total |
(Dollars in thousands) |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury and agency obligations |  | $ | 11,728 |  |  | $ | (9 | ) |  | $ | 3,343 |  |  | $ | (74 | ) |  | $ | 15,071 |  |  | $ | (83 | )
Obligations of states and political subdivisions |  |  | 28,684 |  |  |  | (314 | ) |  |  | 28,061 |  |  |  | (383 | ) |  |  | 56,745 |  |  |  | (697 | )
Mortgage-backed securities |  |  | 2,818 |  |  |  | (7 | ) |  |  | 51,203 |  |  |  | (757 | ) |  |  | 54,021 |  |  |  | (764 | )
Asset-backed securities |  |  | 92,123 |  |  |  | (283 | ) |  |  | 1,683 |  |  |  | (20 | ) |  |  | 93,806 |  |  |  | (303 | )
Commercial mortgage-backed securities |  |  | 92,664 |  |  |  | (525 | ) |  |  | 26,280 |  |  |  | (322 | ) |  |  | 118,944 |  |  |  | (847 | )
Corporate bonds |  |  | 144,505 |  |  |  | (656 | ) |  |  | 3,216 |  |  |  | (53 | ) |  |  | 147,721 |  |  |  | (709 | )
Foreign corporate bonds |  |  | 60,518 |  |  |  | (558 | ) |  |  | — |  |  |  | — |  |  |  | 60,518 |  |  |  | (558 | )
Total fixed maturities |  |  | 433,040 |  |  |  | (2,352 | ) |  |  | 113,786 |  |  |  | (1,609 | ) |  |  | 546,826 |  |  |  | (3,961 | )
Common stock |  |  | 20,002 |  |  |  | (2,808 | ) |  |  | 1,577 |  |  |  | (130 | ) |  |  | 21,579 |  |  |  | (2,938 | )
Total |  | $ | 453,042 |  |  | $ | (5,160 | ) |  | $ | 115,363 |  |  | $ | (1,739 | ) |  | $ | 568,405 |  |  | $ | (6,899 | )
(1) | Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired.
Schedule of Other Than Temporary Impairments on Investments | The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the quarters and nine months ended September 30, 2015 and 2014:
|  | Quarters Ended September 30, |  |  | Nine Months Ended September 30, |
(Dollars in thousands) |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OTTI losses, gross |  | $ | — |  |  | $ | (6 | ) |  | $ | (23 | ) |  | $ | (31 | )
Portion of loss recognized in other comprehensive income (pre-tax) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Net impairment losses on fixed maturities recognized in earnings |  |  | — |  |  |  | (6 | ) |  |  | (23 | ) |  |  | (31 | )
Equity securities |  |  | (4,641 | ) |  |  | — |  |  |  | (6,856 | ) |  |  | (37 | )
Total |  | $ | (4,641 | ) |  | $ | (6 | ) |  | $ | (6,879 | ) |  | $ | (68 | )
Schedule of Credit Losses Recognized in Earnings | The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company for the quarters and nine months ended September 30, 2015 and 2014 for which a portion of the OTTI loss was recognized in other comprehensive income.
|  | Quarters Ended September 30, |  |  | Nine Months Ended September 30, |
(Dollars in thousands) |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Balance at beginning of period |  | $ | 31 |  |  | $ | 50 |  |  | $ | 50 |  |  | $ | 54 |
Additions where no OTTI was previously recorded |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Additions where an OTTI was previously recorded |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Reductions reflecting increases in expected cash flows to be collected |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Reductions for securities sold during the period |  |  | — |  |  |  | — |  |  |  | (19 | ) |  |  | (4 | )
Balance at end of period |  | $ | 31 |  |  | $ | 50 |  |  | $ | 31 |  |  | $ | 50 |
Schedule of Accumulated Other Comprehensive Income, Net of Tax | Accumulated Other Comprehensive Income, Net of Tax Accumulated other comprehensive income, net of tax, as of September 30, 2015 and December 31, 2014 was as follows:
(Dollars in thousands) |  | September 30, 2015 |  |  | December 31, 2014 |
Net unrealized gains from: |  |  |  |  |  |  |  |
Fixed maturities |  | $ | 9,693 |  |  | $ | 10,527 |
Common stock |  |  | 7,409 |  |  |  | 22,751 |
Other |  |  | 970 |  |  |  | 369 |
Deferred taxes |  |  | (4,827 | ) |  |  | (10,263 | )
Accumulated other comprehensive income, net of tax |  | $ | 13,245 |  |  | $ | 23,384 |
Changes in Accumulated Other Comprehensive Income | The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the quarters and nine months ended September 30, 2015 and 2014:
Quarter Ended September 30, 2015 (Dollars in thousands) |  | Unrealized Gains and Losses on Available for Sale Securities, Net of Tax |  |  | Foreign Currency Items, Net of Tax |  |  | Accumulated Other Comprehensive Income, Net of Tax |
Beginning balance |  | $ | 20,201 |  |  | $ | (99) |  |  | $ | 20,102 |
Other comprehensive income (loss) before reclassification |  |  | (9,009 | ) |  |  | (47 | ) |  |  | (9,056 | )
Amounts reclassified from accumulated other comprehensive income (loss) |  |  | 2,129 |  |  |  | 70 |  |  |  | 2,199 |
Other comprehensive income (loss) |  |  | (6,880 | ) |  |  | 23 |  |  |  | (6,857 | )
Ending balance |  | $ | 13,321 |  |  | $ | (76 | ) |  | $ | 13,245 |
Quarter Ended September 30, 2014 (Dollars in thousands) |  | Unrealized Gains and Losses on Available for Sale Securities, Net of Tax |  |  | Foreign Currency Items, Net of Tax |  |  | Accumulated Other Comprehensive Income, Net of Tax |
Beginning balance |  | $ | 33,928 |  |  | $ | 73 |  |  | $ | 34,001 |
Other comprehensive income (loss) before reclassification |  |  | (7,295 | ) |  |  | (228 | ) |  |  | (7,523 | )
Amounts reclassified from accumulated other comprehensive income (loss) |  |  | (1,523 | ) |  |  | (1 | ) |  |  | (1,524 | )
Other comprehensive income (loss) |  |  | (8,818 | ) |  |  | (229 | ) |  |  | (9,047 | )
Ending balance |  | $ | 25,110 |  |  | $ | (156 | ) |  | $ | 24,954 |
Nine Months Ended September 30, 2015 (Dollars in thousands) |  | Unrealized Gains and Losses on Available for Sale Securities, Net of Tax |  |  | Foreign Currency Items, Net of Tax |  |  | Accumulated Other Comprehensive Income, Net of Tax |
Beginning balance |  | $ | 23,647 |  |  | $ | (263) |  |  | $ | 23,384 |
Other comprehensive income (loss) before reclassification |  |  | (9,413 | ) |  |  | (209 | ) |  |  | (9,622 | )
Amounts reclassified from accumulated other comprehensive income (loss) |  |  | (913 | ) |  |  | 396 |  |  |  | (517 | )
Other comprehensive income (loss) |  |  | (10,326 | ) |  |  | 187 |  |  |  | (10,139 | )
Ending balance |  | $ | 13,321 |  |  | $ | (76 | ) |  | $ | 13,245 |
Nine Months Ended September 30, 2014 (Dollars in thousands) |  | Unrealized Gains and Losses on Available for Sale Securities, Net of Tax |  |  | Foreign Currency Items, Net of Tax |  |  | Accumulated Other Comprehensive Income, Net of Tax |
Beginning balance |  | $ | 53,950 |  |  | $ | 78 |  |  | $ | 54,028 |
Other comprehensive income (loss) before reclassification |  |  | 6,396 |  |  |  | (158 | ) |  |  | 6,238 |
Amounts reclassified from accumulated other comprehensive income (loss) |  |  | (35,236 | ) |  |  | (76 | ) |  |  | (35,312 | )
Other comprehensive income (loss) |  |  | (28,840 | ) |  |  | (234 | ) |  |  | (29,074 | )
Ending balance |  | $ | 25,110 |  |  | $ | (156 | ) |  | $ | 24,954 |
Reclassifications Out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive income for the quarters and nine months ended September 30, 2015 and 2014 were as follows:
|  |  |  | Amounts Reclassified from Accumulated Other Comprehensive Income |
|  |  |  | Quarters Ended September 30, |
(Dollars in thousands) Details about Accumulated Other Comprehensive Income Components |  | Affected Line Item in the Consolidated Statements of Operations |  | 2015 |  |  | 2014 |
Unrealized gains and losses on available for sale securities |  | Other net realized investment (gains) |  | $ | (2,042 | ) |  | $ | (2,355 | )
|  | Other than temporary impairment losses on investments |  |  | 4,641 |  |  |  | 6 |
|  | Total before tax |  |  | 2,599 |  |  |  | (2,349 | )
|  | Income tax expense (benefit) |  |  | (470 | ) |  |  | 826 |
|  | Net of tax |  | $ | 2,129 |  |  | $ | (1,523 | )
Foreign Currency Items |  | Other net realized investment (gains) losses |  | $ | 108 |  |  | $ | (1 | )
|  | Income tax (benefit) |  |  | (38 | ) |  |  | — |
|  | Net of tax |  | $ | 70 |  |  | $ | (1 | )
Total reclassifications |  | Net of tax |  | $ | 2,199 |  |  | $ | (1,524 | )
|  |  |  | Amounts Reclassified from Accumulated Other Comprehensive Income |
|  |  |  | Nine Months Ended September 30, |
(Dollars in thousands) Details about Accumulated Other Comprehensive Income Components |  | Affected Line Item in the Consolidated Statements of Operations |  | 2015 |  |  | 2014 |
Unrealized gains and losses on available for sale securities |  | Other net realized investment (gains) |  | $ | (9,168 | ) |  | $ | (53,729 | )
|  | Other than temporary impairment losses on investments |  |  | 6,879 |  |  |  | 68 |
|  | Total before tax |  |  | (2,289 | ) |  |  | (53,661 | )
|  | Income tax expense |  |  | 1,376 |  |  |  | 18,425 |
|  | Net of tax |  | $ | (913 | ) |  | $ | (35,236 | )
Foreign Currency Items |  | Other net realized investment (gains) losses |  | $ | 609 |  |  | $ | (117 | )
|  | Income tax expense (benefit) |  |  | (213 | ) |  |  | 41 |
|  | Net of tax |  | $ | 396 |  |  | $ | (76 | )
Total reclassifications |  | Net of tax |  | $ | (517 | ) |  | $ | (35,312 | )
Components of Net Realized Investment Gains (Losses) | The components of net realized investment gains (losses) for the quarters and nine months ended September 30, 2015 and 2014 were as follows:
|  | Quarters Ended September 30, |  |  | Nine Months Ended September 30, |
(Dollars in thousands) |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross realized gains |  | $ | 110 |  |  | $ | 262 |  |  | $ | 1,589 |  |  | $ | 2,651 |
Gross realized losses |  |  | (1,451 | ) |  |  | (471 | ) |  |  | (1,692 | ) |  |  | (697 | )
Net realized gains/ (losses) |  |  | (1,341 | ) |  |  | (209 | ) |  |  | (103 | ) |  |  | 1,954 |
Common stock: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross realized gains |  |  | 3,494 |  |  |  | 2,559 |  |  |  | 9,418 |  |  |  | 52,434 |
Gross realized losses |  |  | (4,860 | ) |  |  | — |  |  |  | (7,731 | ) |  |  | (610 | )
Net realized gains/ (losses) |  |  | (1,366 | ) |  |  | 2,559 |  |  |  | 1,687 |  |  |  | 51,824 |
Preferred stock: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross realized gains |  |  | — |  |  |  | — |  |  |  | 96 |  |  |  | — |
Gross realized losses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Net realized gains |  |  | — |  |  |  | — |  |  |  | 96 |  |  |  | — |
Derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross realized gains |  |  | — |  |  |  | 147 |  |  |  | — |  |  |  | — |
Gross realized losses |  |  | (8,071 | ) |  |  | (1,339 | ) |  |  | (8,896 | ) |  |  | (13,552 | )
Net realized (losses) |  |  | (8,071 | ) |  |  | (1,192 | ) |  |  | (8,896 | ) |  |  | (13,552 | )
Total net realized investment gains/ (losses) |  | $ | (10,778 | ) |  | $ | 1,158 |  |  | $ | (7,216 | ) |  | $ | 40,226 |
Proceeds from Sales of Available-for-Sale Securities | The proceeds from sales of available-for-sale securities resulting in net realized investment gains (losses) for the nine months ended September 30, 2015 and 2014 were as follows:
|  | Nine Months Ended September 30, |
(Dollars in thousands) |  | 2015 |  |  | 2014 |
Fixed maturities |  | $ | 290,580 |  |  | $ | 350,179 |
Equity securities |  |  | 34,161 |  |  |  | 181,203 |
Preferred stock |  |  | 1,540 |  |  |  | — |
Schedule of Investment Income | The sources of net investment income for the quarters and nine months ended September 30, 2015 and 2014 were as follows:
|  | Quarters Ended September 30, |  |  | Nine Months Ended September 30, |
(Dollars in thousands) |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Fixed maturities |  | $ | 8,673 |  |  | $ | 6,791 |  |  | $ | 24,709 |  |  | $ | 20,843 |
Equity securities |  |  | 703 |  |  |  | 780 |  |  |  | 2,419 |  |  |  | 4,861 |
Cash and cash equivalents |  |  | 32 |  |  |  | 14 |  |  |  | 59 |  |  |  | 42 |
Other invested assets |  |  | 193 |  |  |  | — |  |  |  | 1,535 |  |  |  | 87 |
Total investment income |  |  | 9,601 |  |  |  | 7,585 |  |  |  | 28,722 |  |  |  | 25,833 |
Investment expense |  |  | (749 | ) |  |  | (1,058 | ) |  |  | (2,488 | ) |  |  | (3,345 | )
Net investment income |  | $ | 8,852 |  |  | $ | 6,527 |  |  | $ | 26,234 |  |  | $ | 22,488 |
Schedule of Total Investment Return | The Company’s total investment return on a pre-tax basis for the quarters and nine months ended September 30, 2015 and 2014 were as follows:
|  | Quarters Ended September 30, |  |  | Nine Months Ended September 30, |
(Dollars in thousands) |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Net investment income |  | $ | 8,852 |  |  | $ | 6,527 |  |  | $ | 26,234 |  |  | $ | 22,488 |
Net realized investment gains (losses) |  |  | (10,778 | ) |  |  | 1,158 |  |  |  | (7,216 | ) |  |  | 40,226 |
Change in unrealized holding gains and losses |  |  | (10,420 | ) |  |  | (11,876 | ) |  |  | (15,575 | ) |  |  | (43,650 | )
Net realized and unrealized investment returns |  |  | (21,198 | ) |  |  | (10,718 | ) |  |  | (22,791 | ) |  |  | (3,424 | )
Total investment return |  | $ | (12,346 | ) |  | $ | (4,191 | ) |  | $ | 3,443 |  |  | $ | 19,064 |
Total investment return % (1) |  |  | (0.7 | %) |  |  | (0.3 | %) |  |  | 0.2 | % |  |  | 1.2 | %
Average investment portfolio (2) |  | $ | 1,800,993 |  |  | $ | 1,558,501 |  |  | $ | 1,788,777 |  |  | $ | 1,541,336 |
(1) | Not annualized.
(2) | Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period.
Municipal Bonds with and without Insurance | The following table provides a breakdown of the ratings for these municipal bonds with and without insurance.
(Dollars in thousands) |  | Ratings with |  |  | Ratings without |
Rating |  | Insurance |  |  | Insurance |
AA |  | $ | 511 |  |  | $ | — |
BB |  |  | — |  |  |  | 511 |
Total |  | $ | 511 |  |  | $ | 511 |
Summary of Insurance Enhanced Municipal Bonds Backed by Financial Guarantors | A summary of the Company’s insurance enhanced municipal bonds that are backed by financial guarantors, including the pre-refunded bonds that are escrowed in U.S. government obligations, as of September 30, 2015, is as follows:
(Dollars in thousands) Financial Guarantor |  | Total |  |  | Pre-refunded Securities |  |  | Government Guaranteed Securities |  |  | Exposure Net of Pre-refunded & Government Guaranteed Securities |
Ambac Financial Group |  | $ | 1,686 |  |  | $ | 136 |  |  | $ | — |  |  | $ | 1,550 |
Assured Guaranty Corporation |  |  | 3,661 |  |  |  | — |  |  |  | — |  |  |  | 3,661 |
Municipal Bond Insurance Association |  |  | 4,920 |  |  |  | — |  |  |  | — |  |  |  | 4,920 |
Gov’t National Housing Association |  |  | 553 |  |  |  | — |  |  |  | 553 |  |  |  | — |
Total backed by financial guarantors |  |  | 10,820 |  |  |  | 136 |  |  |  | 553 |  |  |  | 10,131 |
Other credit enhanced municipal bonds |  |  | 8,185 |  |  |  | 8,185 |  |  |  | — |  |  |  | — |
Total |  | $ | 19,005 |  |  | $ | 8,321 |  |  | $ | 553 |  |  | $ | 10,131 |
Summary of Estimated Fair Values of Bonds Held on Deposit | The fair values were as follows as of September 30, 2015 and December 31, 2014:
|  | Estimated Fair Value |
(Dollars in thousands) |  | September 30, 2015 |  |  | December 31, 2014 |
On deposit with governmental authorities |  | $ | 39,763 |  |  | $ | 32,790 |
Intercompany trusts held for the benefit of U.S. policyholders |  |  | 555,859 |  |  |  | 495,301 |
Held in trust pursuant to third party requirements |  |  | 69,153 |  |  |  | 95,828 |
Letter of credit held for third party requirements |  |  | 6,112 |  |  |  | 9,340 |
Securities held as collateral for borrowing arrangements (1) |  |  | 248,486 |  |  |  | 222,809 |
Total |  | $ | 919,373 |  |  | $ | 856,068 |
(1) | Amount required to collateralize margin borrowing facilities.

X
- Definition Proceeds From Sales Of Available For Sale Securities + References No definition available. + Details
Name: | gbli_ProceedsFromSalesOfAvailableForSaleSecuritiesTableTextBlock
Namespace Prefix: | gbli_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of changes in accumulated other comprehensive income. + References No definition available. + Details
Name: | gbli_ScheduleOfChangesInAccumulatedOtherComprehensiveIncomeTableTextBlock
Namespace Prefix: | gbli_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Schedule Of Investment Return On After Tax Basis + References No definition available. + Details
Name: | gbli_ScheduleOfInvestmentReturnOnAfterTaxBasisTableTextBlock
Namespace Prefix: | gbli_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Schedule Of Other Than Temporary Impairment Losses Investments Available For Sale Securities Table + References No definition available. + Details
Name: | gbli_ScheduleOfOtherThanTemporaryImpairmentLossesInvestmentsAvailableForSaleSecuritiesTableTextBlock
Namespace Prefix: | gbli_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Schedule Of Ratings Of Municipal Bonds + References No definition available. + Details
Name: | gbli_ScheduleOfRatingsOfMunicipalBondsTableTextBlock
Namespace Prefix: | gbli_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Summary Of Estimated Fair Values Of Bonds Available For Sale, Held On Deposit And In Trust + References No definition available. + Details
Name: | gbli_SummaryOfEstimatedFairValuesOfBondsAvailableForSaleHeldOnDepositAndInTrustTableTextBlock
Namespace Prefix: | gbli_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Summary Of Insurance Enhanced Municipal Bonds Backed By Financial Guarantors + References No definition available. + Details
Name: | gbli_SummaryOfInsuranceEnhancedMunicipalBondsBackedByFinancialGuarantorsTableTextBlock
Namespace Prefix: | gbli_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27337-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27198-111563 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27357-111563 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563 + Details
Name: | us-gaap_AvailableForSaleSecuritiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of investment income, including, but not limited to, interest and dividend income and amortization of discount (premium) derived from debt and equity securities. Excludes realized and unrealized gain (loss) on investments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.9) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 225 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-04.2) -URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.8) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.7(a),(b)) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688 + Details
Name: | us-gaap_InvestmentIncomeTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments. + References No definition available. + Details
Name: | us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27340-111563 + Details
Name: | us-gaap_OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of realized gains and losses on investments reported in the statement of income. + References No definition available. + Details
Name: | us-gaap_RealizedGainLossOnInvestmentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information about items reclassified out of accumulated other comprehensive income (loss). + References No definition available. + Details
Name: | us-gaap_ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of accumulated other comprehensive income (loss). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section 45 -Paragraph 14A -URI http://asc.fasb.org/extlink&oid=36458714&loc=SL7669686-108580 + Details
Name: | us-gaap_ScheduleOfAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition For all investments in an unrealized loss position, including those for which other-than-temporary impairments have not been recognized in earnings (including investments for which a portion of an other-than-temporary impairment has been recognized in other comprehensive income), a tabular disclosure of the aggregate related fair value of investments with unrealized losses and the aggregate amount of unrealized losses (that is, the amount by which amortized cost basis exceeds fair value). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563 + Details
Name: | us-gaap_ScheduleOfUnrealizedLossOnInvestmentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration