ARGO GROUP INTERNATIONAL HOLDINGS, LTD., 10-Q filed on 8/7/2018
Quarterly Report
v3.10.0.1
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2018
Aug. 02, 2018
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q2  
Trading Symbol ARGO  
Entity Registrant Name Argo Group International Holdings, Ltd.  
Entity Central Index Key 0001091748  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Common Stock, Shares Outstanding   33,986,441
v3.10.0.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
[1]
Investments:    
Fixed maturities available-for-sale, at fair value (cost: 2018 - $3,338.5; 2017 - $3,320.6) $ 3,301.4 $ 3,343.4
Equity securities, at fair value (cost: 2018 - $368.8; 2017 - $338.2) 492.2 487.4
Other investments (cost: 2018 - $516.3; 2017 - $534.1) 525.9 543.6
Short-term investments, at fair value (cost: 2018 - $449.4; 2017 - $368.5) 449.4 368.5
Total investments 4,768.9 4,742.9
Cash 126.7 176.6
Accrued investment income 24.9 23.5
Premiums receivable 698.1 598.6
Reinsurance recoverables 2,131.6 2,093.3
Goodwill 161.4 161.4
Intangible assets, net of accumulated amortization 111.9 96.8
Current income taxes receivable, net 0.0 1.4
Deferred acquisition costs, net 161.1 160.4
Ceded unearned premiums 493.4 399.5
Other assets 427.7 309.6
Total assets 9,105.7 8,764.0
Liabilities and Shareholders' Equity    
Reserves for losses and loss adjustment expenses 4,242.9 4,201.0
Unearned premiums 1,283.6 1,207.7
Accrued underwriting expenses 116.1 115.3
Ceded reinsurance payable, net 816.0 734.0
Funds held 40.8 42.7
Senior unsecured fixed rate notes 139.7 139.6
Other indebtedness 184.6 184.5
Junior subordinated debentures 256.8 256.6
Current income taxes payable, net 13.5 0.0
Deferred tax liabilities, net 15.1 31.3
Other liabilities 199.5 31.6
Total liabilities 7,308.6 6,944.3
Commitments and contingencies (Note 14)
Shareholders' equity:    
Common shares - $1.00 par, 500,000,000 shares authorized; 45,144,646 and 40,385,309 shares issued at June 30, 2018 and December 31, 2017, respectively 45.1 40.4
Additional paid-in capital 1,365.3 1,129.1
Treasury shares (11,129,540 and 10,785,007 shares at June 30, 2018 and December 31, 2017, respectively) (443.8) (423.4)
Retained earnings 884.4 977.0
Accumulated other comprehensive (loss) income, net of taxes (53.9) 96.6
Total shareholders' equity 1,797.1 1,819.7
Total liabilities and shareholders' equity $ 9,105.7 $ 8,764.0
[1] Derived from audited consolidated financial statements.
v3.10.0.1
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Statement of Financial Position [Abstract]    
Fixed maturities available-for-sale, cost $ 3,338.5 $ 3,320.6
Equity securities, cost 368.8 338.2
Other investments, cost 516.3 534.1
Short-term investments, cost $ 449.4 $ 368.5
Common shares, par value (in dollars per share) $ 1.00 $ 1.00
Common shares, shares authorized (in shares) 500,000,000 500,000,000
Common shares, shares issued (in shares) 45,144,646 40,385,309
Treasury shares (in shares) 11,129,540 10,785,007
v3.10.0.1
Condensed Consolidated Statements of Income - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Premiums and other revenue:        
Earned premiums $ 417.7 $ 399.1 $ 832.4 $ 778.5
Net investment income 33.2 43.6 69.2 74.1
Fee and other income 1.9 3.8 3.9 7.4
Net realized investment gains (losses):        
Net realized investment gains 6.2 4.5 21.4 19.1
Change in fair value of equity securities 4.3 0.0 (26.6) 0.0
Net realized investment gains (losses) 10.5 4.5 (5.2) 19.1
Total revenue 463.3 451.0 900.3 879.1
Expenses:        
Losses and loss adjustment expenses 245.5 230.6 482.7 453.1
Underwriting, acquisition and insurance expenses 156.8 154.7 317.0 308.3
Interest expense 7.8 7.0 15.5 12.9
Fee and other expense 1.6 3.3 3.6 7.4
Foreign currency exchange (gains) losses (5.5) 4.6 (0.6) 3.9
Total expenses 406.2 400.2 818.2 785.6
Income before income taxes 57.1 50.8 82.1 93.5
Income tax provision 15.3 4.8 15.5 10.8
Net income $ 41.8 $ 46.0 $ 66.6 $ 82.7
Net income per common share:        
Basic (in dollars per share) $ 1.23 $ 1.32 $ 1.96 $ 2.39
Diluted (in dollars per share) 1.20 1.29 1.92 2.32
Dividend declared per common share (in dollars per share) $ 0.27 $ 0.23 $ 0.54 $ 0.47
Weighted average common shares:        
Basic (in shares) 33,938,509 34,731,866 33,903,809 34,643,594
Diluted (in shares) 34,668,918 35,705,484 34,704,811 35,644,640
Net realized investment gains (losses) before other-than-temporary impairment losses $ 11.4 $ 5.6 $ (3.3) $ 20.6
Other-than-temporary impairment losses recognized in earnings:        
Other-than-temporary impairment losses on fixed maturities (0.9) 0.0 (1.9) 0.0
Other-than-temporary impairment losses on equity securities 0.0 (1.1) 0.0 (1.5)
Impairment losses recognized in earnings (0.9) (1.1) (1.9) (1.5)
Net realized investment gains (losses) $ 10.5 $ 4.5 $ (5.2) $ 19.1
v3.10.0.1
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Statement of Comprehensive Income [Abstract]        
Net income $ 41.8 $ 46.0 $ 66.6 $ 82.7
Other comprehensive (loss) income:        
Foreign currency translation adjustments (2.9) (1.2) (4.0) (0.6)
Unrealized (losses) gains on securities:        
(Losses) gains arising during the year (36.7) 27.5 (61.4) 61.6
Reclassification adjustment for losses (gains) included in net income 15.1 (2.7) 2.6 (18.9)
Other comprehensive (loss) income before tax (24.5) 23.6 (62.8) 42.1
Unrealized (losses) gains on securities:        
(Losses) gains arising during the year (5.3) 6.1 (9.3) 15.9
Reclassification adjustment for losses (gains) included in net income 2.5 (1.0) 0.2 (6.2)
Income tax (benefit) provision related to other comprehensive income (2.8) 5.1 (9.1) 9.7
Other comprehensive (loss) income, net of tax (21.7) 18.5 (53.7) 32.4
Comprehensive income $ 20.1 $ 64.5 $ 12.9 $ 115.1
v3.10.0.1
Condensed Consolidated Statements of Shareholders' Equity - USD ($)
$ in Millions
Total
Common Shares [Member]
Additional Paid-In Capital [Member]
Treasury Shares [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Beginning Balance at Dec. 31, 2016 $ 1,792.7 $ 40.0 $ 1,123.3 $ (378.2) $ 959.9 $ 47.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 82.7       82.7  
Other comprehensive income, net of tax 32.4         32.4
Repurchase of common shares (2.8)     (2.8)    
Activity under stock incentive plans 8.5 0.4 8.1      
Retirement of common shares (tax payments on equity compensation) (6.4) (0.1) (6.3)      
Employee stock purchase plan 0.8   0.8      
Cash dividends declared - common shares (16.6)       (16.6)  
Ending Balance at Jun. 30, 2017 1,891.3 40.3 1,125.9 (381.0) 1,026.0 80.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Cumulative effect of adoption of ASU | ASU 2016-01 [Member] 0.0       117.5 (117.5)
Cumulative effect of adoption of ASU | ASU 2018-02 [Member] 0.0       (20.7) 20.7
Beginning Balance at Dec. 31, 2017 1,819.7 [1] 40.4 1,129.1 (423.4) 977.0 96.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 66.6       66.6  
Other comprehensive income, net of tax (53.7)         (53.7)
Repurchase of common shares (20.4)     (20.4)    
Activity under stock incentive plans 9.7 0.4 9.3      
Retirement of common shares (tax payments on equity compensation) (6.6) (0.1) (6.5)      
Employee stock purchase plan 0.5   0.5      
15% Stock Dividend 0.0 4.4 232.9   (237.3)  
Cash dividends declared - common shares (18.7)       (18.7)  
Ending Balance at Jun. 30, 2018 $ 1,797.1 $ 45.1 $ 1,365.3 $ (443.8) $ 884.4 $ (53.9)
[1] Derived from audited consolidated financial statements.
v3.10.0.1
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares
3 Months Ended 6 Months Ended
May 08, 2018
Jun. 01, 2017
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Statement of Stockholders' Equity [Abstract]            
Common shares repurchased (in shares)         344,533 46,500
Repurchase of common shares, weighted average price (in dollars per share)         $ 59.20 $ 59.54
Stock divided declared     15.00%   15.00%  
Dividend declared per common share (in dollars per share) $ 0.27 $ 0.23 $ 0.27 $ 0.23 $ 0.54 $ 0.47
v3.10.0.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Cash flows from operating activities:    
Net income $ 66.6 $ 82.7
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Amortization and depreciation 13.8 15.9
Share-based payments expense 11.0 7.6
Deferred income tax benefit, net (6.9) (4.7)
Net realized investment losses (gains) 5.2 (19.1)
Undistributed earnings from alternative investment portfolio (13.9) (32.9)
Loss on disposals of fixed assets, net 0.0 1.7
Change in:    
Accrued investment income (1.2) (2.1)
Receivables (53.3) (103.9)
Deferred acquisition costs (1.5) (13.8)
Ceded unearned premiums (87.4) (41.0)
Reserves for losses and loss adjustment expenses (71.1) 85.4
Unearned premiums 67.0 53.3
Ceded reinsurance payable and funds held 80.2 57.0
Income taxes 14.9 5.9
Accrued underwriting expenses (29.4) (21.7)
Other, net 131.9 (33.0)
Cash provided by (used in) operating activities 125.9 37.3
Cash flows from investing activities:    
Sales of fixed maturity investments 882.0 785.8
Maturities and mandatory calls of fixed maturity investments 288.7 335.1
Sales of equity securities 104.9 107.5
Sales of other investments 38.1 65.1
Purchases of fixed maturity investments (1,237.5) (1,381.7)
Purchases of equity securities (113.3) (67.5)
Purchases of other investments (23.3) (16.8)
Change in foreign regulatory deposits and voluntary pools 13.1 (9.5)
Change in short-term investments (80.7) 309.9
Settlements of foreign currency exchange forward contracts 2.3 0.5
Acquisition of Maybrooke, net of cash acquired   (105.2)
Cash acquired with acquisition of Ariscom 15.6  
Purchases of fixed assets (11.0) (10.0)
Other, net (16.7) (27.7)
Cash used in investing activities (137.8) (14.5)
Cash flows from financing activities:    
Additional long-term borrowings 0.0 125.0
Activity under stock incentive plans 0.2 0.5
Repurchase of Company's common shares (19.4) (2.8)
Payment of cash dividends to common shareholders (18.7) (16.6)
Cash (used in) provided by financing activities (37.9) 106.1
Effect of exchange rate changes on cash (0.1) (0.4)
Change in cash (49.9) 128.5
Cash, beginning of year 176.6 [1] 86.0
Cash, end of period 126.7 214.5
Maybrooke [Member]    
Cash flows from investing activities:    
Acquisition of Maybrooke, net of cash acquired 0.0 (105.2)
Ariscom [Member]    
Cash flows from investing activities:    
Cash acquired with acquisition of Ariscom $ 15.6 $ 0.0
[1] Derived from audited consolidated financial statements.
v3.10.0.1
Basis of Presentation
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying consolidated financial statements of Argo Group International Holdings, Ltd. (“Argo Group,” “we” or the “Company”) and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The preparation of interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The major estimates reflected in our consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses; reinsurance recoverables, including the reinsurance recoverables allowance for doubtful accounts; estimates of written and earned premiums; reinsurance premium receivable; fair value of investments and assessment of potential impairment; valuation of goodwill and intangibles and our deferred tax asset valuation allowance. Actual results could differ from those estimates. Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission on February 27, 2018.
Effective March 5, 2018, we acquired 100% of the capital stock of Ariscom Compagnia di Assicurazioni S.p.A. (“Ariscom”) upon its release from extraordinary administration by the Italian insurance supervisory authority (“IVASS”). The acquisition is being accounted for in accordance with Accounting Standards Codification (“ASC”) 805, “Business Combinations.” See Note 3, “Acquisition of Ariscom,” for additional discussion regarding the acquisition. The Consolidated Financial Statements as of and for the three and six months ended June 30, 2018 and the Notes to the Consolidated Financial Statements reflect the consolidated results of Argo Group and Ariscom commencing on the date of acquisition.
The interim financial information as of, and for the three and six months ended June 30, 2018 and 2017 is unaudited. However, in the opinion of management, the interim information includes all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results presented for the interim periods. The operating results for the interim periods are not necessarily indicative of the results to be expected for the full year. All significant intercompany amounts have been eliminated in consolidation.
 
15% Stock Dividend
 
On February 20, 2018, our Board of Directors declared at 15% stock dividend, payable on March 21, 2018, to shareholders of record at the close of business on March 7, 2018. As a result of the stock dividend, 4,397,520 additional shares were issued. Cash was paid in lieu of fractional shares of our common shares. Excluding repurchased shares, all references to common shares associated with the recalculation of per share amounts in this document and related disclosures have been adjusted to reflect the stock dividend for all periods presented.
v3.10.0.1
Recently Issued Accounting Pronouncements
6 Months Ended
Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]  
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements
On February 14, 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2018-2, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” that allows a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings of the stranded tax effects in AOCI resulting from the Tax Cuts and Jobs Act (“TCJA”). Current guidance required the effect of a change in tax laws or rates on deferred tax balances to be reported in income from continuing operations in the accounting period that includes the period of enactment, even if the related income tax effects were originally charged or credited directly to AOCI. The amount of the reclassification would include the effect of the change in the US federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of the enactment of TCJA related to items in AOCI. The updated guidance is effective for reporting periods beginning after December 15, 2018 and is to be applied retrospectively to each period in which the effect of the TCJA related to items remaining in AOCI are recognized or at the beginning of the period of adoption. Early adoption is permitted, including adoption in any interim period for public business entities for reporting periods for which financial statements have not yet been issued. We have adopted the guidance effective January 1, 2018. The adoption of this ASU does not affect the Company’s results of operations, financial position, or liquidity. As a result of adopting this ASU, we reclassified $20.7 million of previously recognized deferred taxes from accumulated other comprehensive income into retained earnings as of January 1, 2018.
In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments (Topic 230).” ASU 2016-15 will reduce diversity in practice on how eight specific cash receipts and payments are classified on the statement of cash flows. The ASU was effective for fiscal years beginning after December 15, 2017, including interim periods within the year of adoption. This ASU will have an impact on how we present the distributions received from equity method investees in our statement of cash flows. We have adopted this ASU effective January 1, 2018. This ASU did not have a material impact on the classification of specific cash receipts and payments within the cash flow statement.
In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (Topic 326). ASU 2016-13 requires organizations to estimate credit losses on certain types of financial instruments, including receivables and available-for-sale debt securities, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within the year of adoption. The guidance requires a modified retrospective transition method and early adoption is permitted. We are currently in the process of evaluating the impact that the adoption of the ASU will have on our financial results and disclosures.
In February 2016, the FASB issued ASU 2016-2, “Leases” (Topic 842). ASU 2016-2 requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additionally, the ASU modifies current guidance for lessors' accounting. The ASU is effective for interim and annual reporting periods beginning on or after January 1, 2019, with early adoption permitted. We do not anticipate that this ASU will have a material impact on our results of operations, but we anticipate an increase to the value of our assets and liabilities related to leases, with no material impact to equity.
In January 2016, the FASB issued ASU 2016-1, “Recognition and Measurement of Financial Assets and Financial Liabilities” (Subtopic 825-10). ASU 2016-1 requires equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income. This ASU also requires us to assess the ability to realize our deferred tax assets related to an available-for-sale debt security in combination with our other deferred tax assets. The ASU was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We have adopted this ASU effective January 1, 2018. Upon adoption of this ASU, cumulative net unrealized gain on equity securities of $117.5 million, net of deferred income taxes, were reclassified from accumulated other comprehensive income into retained earnings as of January 1, 2018. The change in the fair value of the noted investments is now included in “Net realized investment gains” in our consolidated statements of income. The standard increases the volatility of the results reported in our consolidated statements of income, resulting from the remeasurement of our equity investments.
In May 2014, the FASB issued ASU 2014-9, “Revenue from Contracts with Customers” (Topic 606), which replaces most existing U.S. GAAP revenue recognition guidance and permits the use of either the retrospective or cumulative effect transition method. In August 2015, “Deferral of the Effective Date” (Topic 606), deferred the effective date of this guidance to interim and annual reporting periods beginning after December 15, 2017. Subsequently, in 2016, the FASB issued implementation guidance related to ASU 2014-9, including:
 
ASU 2016-8, “Principal versus Agent considerations (Reporting Revenue Gross versus Net)” (Topic 606), which is intended to provide further clarification on the application of the principal versus agent implementations;
ASU 2016-10, “Identifying Performance Obligations and Licensing” (Topic 606), which is intended to clarify the guidance for identifying promised goods or service in a contract with a customer;
ASU 2016-11, “Rescission of SEC Guidance Because of Accounting Standards Updates 2014-9 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting” (Topics 605 & 815);
ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients” (Topic 606), provides additional guidance for quantitative and qualitative disclosures in certain cases, and makes 12 additional technical corrections and improvements to the new revenue standard.
We adopted this ASU effective January 1, 2018. The adoption of this standard did not have a material impact on our consolidated financial results.
v3.10.0.1
Acquisition of Ariscom
6 Months Ended
Jun. 30, 2018
Business Combinations [Abstract]  
Acquisition of Ariscom
Acquisition of Ariscom
Effective March 5, 2018, we acquired 100% of the capital stock of Ariscom upon its release from extraordinary administration by IVASS. We injected an amount of capital into Ariscom necessary to meet certain regulatory requirements and thresholds. As part of this capital infusion, we have become the sole shareholder of Ariscom.
The acquisition provides Argo Group with an in-market Italian insurance platform and access to Ariscom’s broker and client network throughout Italy, with longer-term opportunities to expand our presence in continental Europe, particularly Spain and Portugal.
The acquisition is being accounted for in accordance with ASC 805, “Business Combinations.” Purchase accounting, as defined by ASC 805, requires that the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. We are in the process of finalizing our determination of fair values, including an independent appraisal of certain assets and liabilities, including intangible assets. We anticipate closing the fair value measurement period by the end of 2018. Ariscom’s financial position, results of operations, and cash flows were not material to our consolidated financial results as of and for the three and six months ended June 30, 2018.
v3.10.0.1
Investments
6 Months Ended
Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
Investments
Investments
Included in “Total investments” in our Consolidated Balance Sheets at June 30, 2018 and December 31, 2017 is $113.2 million and $130.8 million, respectively, of assets managed on behalf of the trade capital providers, who are third-party participants that provide underwriting capital to the operations of Syndicate 1200.
Fixed Maturities
The amortized cost, gross unrealized gains, gross unrealized losses and fair value in fixed maturity investments were as follows:
June 30, 2018
 
 
 
 
 
 
 
 
(in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed maturities
 
 
 
 
 
 
 
 
U.S. Governments
 
$
268.0

 
$
0.2

 
$
7.0

 
$
261.2

Foreign Governments
 
248.3

 
1.7

 
5.9

 
244.1

Obligations of states and political subdivisions
 
266.6

 
5.9

 
1.8

 
270.7

Corporate bonds
 
1,655.2

 
10.7

 
30.5

 
1,635.4

Commercial mortgage-backed securities
 
145.8

 

 
2.8

 
143.0

Residential mortgage-backed securities
 
375.7

 
2.0

 
9.6

 
368.1

Asset-backed securities
 
159.4

 
0.4

 
1.3

 
158.5

Collateralized loan obligations
 
219.5

 
1.7

 
0.8

 
220.4

Total fixed maturities
 
$
3,338.5

 
$
22.6

 
$
59.7

 
$
3,301.4

December 31, 2017
 
 
 
 
 
 
 
 
(in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed maturities
 
 
 
 
 
 
 
 
U.S. Governments
 
$
419.9

 
$
0.2

 
$
5.0

 
$
415.1

Foreign Governments
 
229.0

 
6.7

 
2.5

 
233.2

Obligations of states and political subdivisions
 
327.7

 
9.3

 
1.1

 
335.9

Corporate bonds
 
1,514.5

 
24.4

 
13.2

 
1,525.7

Commercial mortgage-backed securities
 
136.3

 
0.1

 
1.5

 
134.9

Residential mortgage-backed securities
 
309.3

 
2.8

 
2.7

 
309.4

Asset-backed securities
 
161.3

 
0.7

 
0.8

 
161.2

Collateralized loan obligations
 
222.6

 
5.9

 
0.5

 
228.0

Total fixed maturities
 
$
3,320.6

 
$
50.1

 
$
27.3

 
$
3,343.4


Contractual Maturity
The amortized cost and fair values of fixed maturity investments as of June 30, 2018, by contractual maturity, were as follows:
(in millions)
 
Amortized
Cost
 
Fair
Value
Due in one year or less
 
$
208.9

 
$
208.6

Due after one year through five years
 
1,482.3

 
1,465.7

Due after five years through ten years
 
597.2

 
588.0

Thereafter
 
149.7

 
149.1

Structured securities
 
900.4

 
890.0

Total
 
$
3,338.5

 
$
3,301.4


The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations.
Other Investments
Details regarding the carrying value and unfunded investment commitments of other investments as of June 30, 2018 and December 31, 2017 were as follows:
June 30, 2018
 
 
 
 
(in millions)
 
Carrying
Value
 
Unfunded
Commitments
Investment Type
 
 
 
 
Hedge funds
 
$
140.0

 
$

Private equity
 
199.0

 
114.9

Long only funds
 
182.6

 

Other
 
4.3

 

Total other investments
 
$
525.9

 
$
114.9

December 31, 2017
 
 
 
 
(in millions)
 
Carrying
Value
 
Unfunded
Commitments
Investment Type
 
 
 
 
Hedge funds
 
$
163.6

 
$

Private equity
 
179.2

 
129.9

Long only funds
 
196.5

 

Other
 
4.3

 

Total other investments
 
$
543.6

 
$
129.9


The following describes each investment type:
Hedge funds: Hedge funds include funds that primarily buy and sell stocks, including short sales, multi-strategy credit, relative value credit and distressed credit.
Private equity: Private equity includes buyout funds, real asset/infrastructure funds, credit special situations funds, mezzanine lending funds and direct investments and strategic non-controlling minority investments in private companies that are principally accounted for using the equity method of accounting.
Long only funds: Our long only funds include a fund that primarily owns international stocks and funds that primarily own investment-grade corporate and sovereign fixed income securities.  
Other: Other includes participation in investment pools.
Unrealized Losses and Other-Than-Temporary Impairments
An aging of unrealized losses on our investments in fixed maturities is presented below:
June 30, 2018
 
Less Than One Year
 
One Year or Greater
 
Total
(in millions)
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed maturities
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Governments
 
$
223.4

 
$
6.1

 
$
17.2

 
$
0.9

 
$
240.6

 
$
7.0

Foreign Governments (1)
 
212.9

 
5.9

 
5.0

 

 
217.9

 
5.9

Obligations of states and political subdivisions
 
67.5

 
1.1

 
14.6

 
0.7

 
82.1

 
1.8

Corporate bonds
 
1,195.0

 
28.7

 
28.9

 
1.8

 
1,223.9

 
30.5

Commercial mortgage-backed securities
 
105.2

 
1.9

 
15.8

 
0.9

 
121.0

 
2.8

Residential mortgage-backed securities
 
288.2

 
8.9

 
14.0

 
0.7

 
302.2

 
9.6

Asset-backed securities
 
107.1

 
1.0

 
7.0

 
0.3

 
114.1

 
1.3

Collateralized loan obligations
 
129.8

 
0.8

 

 

 
129.8

 
0.8

Total fixed maturities
 
$
2,329.1

 
$
54.4

 
$
102.5

 
$
5.3

 
$
2,431.6

 
$
59.7

December 31, 2017
 
Less Than One Year
 
One Year or Greater
 
Total
(in millions)
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed maturities
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Governments
 
$
313.7

 
$
1.9

 
$
83.7

 
$
3.1

 
$
397.4

 
$
5.0

Foreign Governments
 
175.2

 
2.0

 
35.9

 
0.5

 
211.1

 
2.5

Obligations of states and political subdivisions
 
33.3

 
0.5

 
22.4

 
0.6

 
55.7

 
1.1

Corporate bonds
 
674.1

 
9.9

 
77.7

 
3.3

 
751.8

 
13.2

Commercial mortgage-backed securities
 
58.2

 
0.4

 
37.8

 
1.1

 
96.0

 
1.5

Residential mortgage-backed securities
 
164.4

 
1.6

 
52.4

 
1.1

 
216.8

 
2.7

Asset-backed securities
 
85.4

 
0.4

 
31.9

 
0.4

 
117.3

 
0.8

Collateralized loan obligations (1)
 
34.6

 
0.5

 
0.9

 

 
35.5

 
0.5

Total fixed maturities
 
$
1,538.9

 
$
17.2

 
$
342.7

 
$
10.1

 
$
1,881.6

 
$
27.3

(1) 
Unrealized losses one year or greater are less than $0.1 million.
We regularly evaluate our investments for other-than-temporary impairment. For fixed maturity securities, the evaluation for a credit loss is generally based on the present value of expected cash flows of the security as compared to the amortized book value. For structured securities, frequency and severity of loss inputs are used in projecting future cash flows of the securities. Loss frequency is measured as the credit default rate, which includes such factors as loan-to-value ratios and credit scores of borrowers. We also recognize other-than-temporary losses on fixed maturity securities that we intend to sell. Effective January 1, 2018, the Company adopted ASU 2016-1. As a result, changes in the fair value of equity securities are recognized in net realized investment gains in the Consolidated Statement of Income.
We hold a total of 5,260 securities, of which 3,349 were in an unrealized loss position for less than one year and 106 were in an unrealized loss position for a period one year or greater as of June 30, 2018. Unrealized losses greater than twelve months on fixed maturities were the result of a number of factors, including increased credit spreads, foreign currency fluctuations and higher market yields relative to the date the securities were purchased, and for structured securities, by the performance of the underlying collateral, as well. In considering whether an investment is other-than-temporarily impaired or not, we also considered that we do not intend to sell the investments and it is unlikely that we will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. We do not consider these investments to be other-than-temporarily impaired at June 30, 2018.
We recognized other-than-temporary losses on our fixed maturities and equity portfolio as follows:
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Other-than-temporary impairment:
 
 
 
 
 
 
 
 
Corporate bonds
 
$
(0.9
)
 
$

 
(1.9
)
 

Equity securities
 

 
(1.1
)
 

 
(1.5
)
Other-than-temporary impairment losses
 
$
(0.9
)
 
$
(1.1
)
 
$
(1.9
)
 
$
(1.5
)

Net Realized Investment Gains and Losses
The following table presents our gross realized investment gains (losses):
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Realized gains on fixed maturities and other
 
 
 
 
 
 
 
 
Fixed maturities
 
$
3.7

 
$
5.5

 
$
11.2

 
$
12.6

Equity securities (1)
 

 
12.0

 

 
27.7

Other and short-term investments
 
15.6

 
5.1

 
27.3

 
11.3

 
 
19.3

 
22.6

 
38.5

 
51.6

Realized losses on fixed maturities and other
 
 
 
 
 
 
 
 
Fixed maturities
 
(6.5
)
 
(5.0
)
 
(11.4
)
 
(11.2
)
Equity securities (1)
 

 
(1.8
)
 

 
(2.5
)
Other and Short-term investments
 
(16.3
)
 
(10.2
)
 
(25.6
)
 
(17.3
)
Other-than-temporary impairment losses on fixed maturities
 
(0.9
)
 

 
(1.9
)
 

Other-than-temporary impairment losses on equity securities
 

 
(1.1
)
 

 
(1.5
)
 
 
(23.7
)
 
(18.1
)
 
(38.9
)
 
(32.5
)
Equity securities (1)
 
 
 
 
 
 
 
 
Net realized gains on equity securities sold during the period
 
10.6

 

 
21.8

 

Change in unrealized gains (losses) on equity securities held at the end of the period
 
4.3

 

 
(26.6
)
 

Net realized gains (losses) on equity securities
 
14.9

 

 
(4.8
)
 

Net realized investment gains (losses) before income taxes
 
10.5

 
4.5

 
(5.2
)
 
19.1

Income tax (expense) benefit
 
(2.4
)
 
(1.3
)
 
0.5

 
(5.7
)
Net realized investment gains (losses), net of income taxes
 
$
8.1

 
$
3.2

 
$
(4.7
)
 
$
13.4

(1)
Effective January 1, 2018, we adopted ASU 2016-1. As a result, unrealized gains (losses) at the date of adoption have been reclassified from accumulated other comprehensive income to retained earnings. Additionally, all changes in the fair value of equity securities are recognized in net realized investment gains (losses). Prior periods have not been restated to conform to the current presentation. See Note 2, "Recently Issued Accounting Pronouncements."
The cost of securities sold is based on the specific identification method.
Changes in unrealized appreciation (depreciation) related to investments are summarized as follows:
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Change in unrealized (losses) gains
 
 
 
 
 
 
 
 
Fixed maturities
 
$
(21.8
)
 
$
19.5

 
(58.9
)
 
32

Equity securities
 

 
3.3

 

 
8.7

Other investments
 
0.1

 
2.0

 
0.1

 
2

Short-term investments
 
0.1

 

 

 

Net unrealized investment (losses) gains before income taxes
 
(21.6
)
 
24.8

 
(58.8
)
 
42.7

Income tax benefit (expense)
 
2.8

 
(5.1
)
 
9.1

 
(9.7
)
Net unrealized investment (losses) gains, net of income taxes
 
$
(18.8
)
 
$
19.7

 
$
(49.7
)
 
$
33.0


Foreign Currency Exchange Forward Contracts
We entered into foreign currency exchange forward contracts to manage operational currency exposure on our Canadian dollar (“CAD”) investment portfolio, minimize negative impacts to investment portfolio returns, and gain exposure to a total return strategy which invests in multiple currencies.  The currency forward contracts are carried at fair value in our Consolidated Balance Sheets in “Other liabilities” at June 30, 2018 and December 31, 2017.  The gains and losses are included in “Net realized investment gains (losses)” in our Consolidated Statements of Income.
The fair value of our foreign currency exchange forward contracts as of June 30, 2018 and December 31, 2017 was as follows:
(in millions)
 
June 30, 2018
 
December 31, 2017
Operational currency exposure
 
$
(2.2
)
 
$
(0.2
)
Asset manager investment exposure
 
0.2

 
(0.9
)
Total return strategy
 
(0.3
)
 
0.7

Total
 
$
(2.3
)
 
$
(0.4
)

The following table represents our gross investment realized gains and losses on our foreign currency exchange forward contracts:
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Realized gains
 
 
 
 
 
 
 
 
Operational currency exposure
 
$
1.7

 
$
3.7

 
$
6.0

 
$
5.7

Asset manager investment exposure
 
8.7

 

 
13.0

 
0.5

Total return strategy
 
4.3

 
0.5

 
6.9

 
3.6

Gross realized investment gains
 
14.7

 
4.2

 
25.9

 
9.8

Realized losses
 
 
 
 
 
 
 
 
Operational currency exposure
 
(3.7
)
 
(3.7
)
 
(4.3
)
 
(5.9
)
Asset manager investment exposure
 
(5.7
)
 
(5.4
)
 
(11.6
)
 
(6.8
)
Total return strategy
 
(6.0
)
 
(0.8
)
 
(8.1
)
 
(2.7
)
Gross realized investment losses
 
(15.4
)
 
(9.9
)
 
(24.0
)
 
(15.4
)
Net realized investment (losses) gains on foreign currency exchange forward contracts
 
$
(0.7
)
 
$
(5.7
)
 
$
1.9

 
$
(5.6
)

Regulatory Deposits, Pledged Securities and Letters of Credit
We are required to maintain assets on deposit with various regulatory authorities to support our insurance and reinsurance operations.  We maintain assets pledged as collateral in support of irrevocable letters of credit issued under the terms of certain reinsurance agreements for reported loss and loss expense reserves. The following table presents our components of restricted assets at June 30:
(in millions)
 
June 30, 2018
 
June 30, 2017
Securities on deposit for regulatory and other purposes
 
$
167.0

 
$
176.0

Securities pledged as collateral for letters of credit
 
78.1

 
29.1

Securities and cash on deposit supporting Lloyd’s business
 
373.9

 
397.2

Total restricted investments
 
$
619.0

 
$
602.3


Fair Value Measurements
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability, or in the absence of a principal market, the most advantageous market. Market participants are buyers and sellers in the principal (or most advantageous) market that are independent, knowledgeable, able to transact for the asset or liability and willing to transfer the asset or liability.
Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value. The inputs of these valuation techniques are categorized into three levels.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the reporting date. We define actively traded as a security that has traded in the past seven days. We receive one quote per instrument for Level 1 inputs.
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. We receive one quote per instrument for Level 2 inputs.
Level 3 inputs are unobservable inputs. Unobservable inputs reflect our own judgments about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances.
We receive fair value prices from third-party pricing services and our outside investment managers. These prices are determined using observable market information such as dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. We have reviewed the processes used by the third-party providers for pricing the securities, and have determined that these processes result in fair values consistent with GAAP requirements. In addition, we review these prices for reasonableness, and have not adjusted any prices received from the third-party providers as of June 30, 2018. A description of the valuation techniques we use to measure assets at fair value is as follows:
Fixed Maturities (Available-for-Sale) Levels 1 and 2:
United States Treasury securities are typically valued using Level 1 inputs. For these securities, we obtain fair value measurements from third-party pricing services using quoted prices (unadjusted) in active markets at the reporting date.
United States Government agencies, non-U.S. Government securities, obligations of states and political subdivisions, credit securities and foreign denominated government and credit securities are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, yield curves, live trading levels, trade execution data, credit information and the security’s terms and conditions, among other things.
Asset and mortgage-backed securities and collateralized loan obligations are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things.
Fixed Maturities (Available-for-Sale) Levels 3:
We own term loans that are valued using unobservable inputs.
Equity Securities Level 1: Equity securities are principally reported at fair value using Level 1 inputs. For these securities, we obtain fair value measurements from a third-party pricing service using quoted prices (unadjusted) in active markets at the reporting date.
Equity Securities Level 2: We own interests in a mutual fund that is reported at fair value using Level 2 inputs. The valuation is based on the fund’s net asset value per share, at the end of each month. The underlying assets in the fund are valued primarily on the basis of closing market quotations or official closing prices on each valuation day.
Equity Securities Level 3: We own certain equity securities that are reported at fair value using Level 3 inputs. The valuation techniques for these securities include the following:
Fair value measurements obtained from the National Association of Insurance Commissioners’ Security Valuation Office at the reporting date.
Fair value measurements for an investment in an equity fund obtained by applying final prices provided by the administrator of the fund, which is based upon certain estimates and assumptions.
Fair value measurements from a broker and an independent valuation service, both based upon estimates and assumptions.
Other Investments Level 2: Foreign regulatory deposits are assets held in trust in jurisdictions where there is a legal and regulatory requirement to maintain funds locally in order to protect policyholders. Lloyd’s is the appointed investment manager for the funds. These assets are invested in short-term government securities, agency securities and corporate bonds and are valued using Level 2 inputs based upon values obtained from Lloyd’s.
Short-term Investments: Short-term investments are principally reported at fair value using Level 1 inputs, with the exception of short-term corporate and governmental bonds reported at fair value using Level 2 inputs as described in the fixed maturities section above. Values for the investments categorized as Level 1 are obtained from various financial institutions as of the reporting date.
Transfers Between Level 1 and Level 2 Securities: There were no transfers between Level 1 and Level 2 securities during the three months ended June 30, 2018.
Based on an analysis of the inputs, our financial assets measured at fair value on a recurring basis have been categorized as follows:
 
 
 
 
Fair Value Measurements at Reporting Date Using
(in millions)
 
June 30, 2018
 
Level 1 (a)
 
Level 2 (b)
 
Level 3 (c)
Fixed maturities
 
 
 
 
 
 
 
 
U.S. Governments
 
$
261.2

 
$
252.2

 
$
9.0

 
$

Foreign Governments
 
244.1

 

 
244.1

 

Obligations of states and political subdivisions
 
270.7

 

 
270.7

 

Corporate bonds
 
1,635.4

 

 
1,631.8

 
3.6

Commercial mortgage-backed securities
 
143.0

 

 
143.0

 

Residential mortgage-backed securities
 
368.1

 

 
368.1

 

Asset-backed securities
 
158.5

 

 
158.5

 

Collateralized loan obligations
 
220.4

 

 
220.4

 

Total fixed maturities
 
3,301.4

 
252.2

 
3,045.6

 
3.6

Equity securities
 
492.2

 
484.1

 
2.1

 
6.0

Other investments
 
95.4

 

 
95.4

 

Short-term investments
 
449.4

 
391.8

 
57.6

 

 
 
$
4,338.4

 
$
1,128.1

 
$
3,200.7

 
$
9.6

(a) 
Quoted prices in active markets for identical assets
(b) 
Significant other observable inputs
(c) 
Significant unobservable inputs
 
 
 
 
Fair Value Measurements at Reporting Date Using
(in millions)
 
December 31, 2017
 
Level 1 (a)
 
Level 2 (b)
 
Level 3 (c)
Fixed maturities
 
 
 
 
 
 
 
 
U.S. Governments
 
$
415.1

 
$
410.6

 
$
4.5

 
$

Foreign Governments
 
233.2

 

 
233.2

 

Obligations of states and political subdivisions
 
335.9

 

 
335.9

 

Corporate bonds
 
1,525.7

 

 
1,523.8

 
1.9

Commercial mortgage-backed securities
 
134.9

 

 
134.9

 

Residential mortgage-backed securities
 
309.4

 

 
309.4

 

Asset-backed securities
 
161.2

 

 
161.2

 

Collateralized loan obligations
 
228.0

 

 
228.0

 

Total fixed maturities
 
3,343.4

 
410.6

 
2,930.9

 
1.9

Equity securities
 
487.4

 
483.0

 
2.1

 
2.3

Other investments
 
108.8

 

 
108.8

 

Short-term investments
 
368.5

 
333.7

 
34.8

 

 
 
$
4,308.1

 
$
1,227.3

 
$
3,076.6

 
$
4.2

(a) 
Quoted prices in active markets for identical assets
(b) 
Significant other observable inputs
(c) 
Significant unobservable inputs
The fair value measurements in the tables above do not equal “Total investments” on our Consolidated Balance Sheets as they exclude certain other investments that are accounted for under the equity-method of accounting.
A reconciliation of the beginning and ending balances for the investments categorized as Level 3 are as follows:
Fair Value Measurements Using Observable Inputs (Level 3)
(in millions)
 
Credit Financial
 
Equity
Securities
 
Total
Beginning balance, January 1, 2018
 
$
1.9

 
$
2.3

 
$
4.2

Transfers into Level 3
 

 

 

Transfers out of Level 3
 

 

 

Total gains or losses (realized/unrealized):
 
 
 
 
 
 
Included in net income (loss)
 

 

 

Included in other comprehensive income (loss)
 

 

 

Purchases, issuances, sales, and settlements:
 
 
 
 
 
 
Purchases
 
1.7

 
4.1

 
5.8

Issuances
 

 

 

Sales
 

 
(0.4
)
 
(0.4
)
Settlements
 

 

 

 Ending balance, June 30, 2018
 
$
3.6

 
$
6.0

 
$
9.6

Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2018
 
$

 
$

 
$

(in millions)
 
Credit Financial
 
Equity
Securities
 
Total
Beginning balance, January 1, 2017
 
$
2.0

 
$
0.4

 
$
2.4

Transfers into Level 3
 

 

 

Transfers out of Level 3
 

 

 

Total gains or losses (realized/unrealized):
 
 
 
 
 


Included in net income (loss)
 

 

 

Included in other comprehensive income (loss)
 
(0.1
)
 
0.2

 
0.1

Purchases, issuances, sales, and settlements:
 
 
 
 
 


Purchases
 

 
1.7

 
1.7

Issuances
 

 

 

Sales
 

 

 

Settlements
 

 

 

 Ending balance, December 31, 2017
 
$
1.9

 
$
2.3

 
$
4.2

Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2017
 
$

 
$

 
$


At June 30, 2018 and December 31, 2017, we did not have any financial assets or financial liabilities measured at fair value on a nonrecurring basis or any financial liabilities on a recurring basis.
v3.10.0.1
Reserves for Losses and Loss Adjustment Expenses
6 Months Ended
Jun. 30, 2018
Insurance [Abstract]  
Reserves for Losses and Loss Adjustment Expenses
Reserves for Losses and Loss Adjustment Expenses
The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”):
 
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
Net reserves beginning of the year
 
$
2,488.0

 
$
2,180.2

Net Maybrooke reserves acquired
 

 
132.6

Net Ariscom reserves acquired
 
49.4

 

Add:
 
 
 
 
Losses and LAE incurred during current calendar year, net of reinsurance:
 
 
 
 
Current accident year
 
487.1

 
447.4

Prior accident years
 
(4.4
)
 
5.7

Losses and LAE incurred during calendar year, net of reinsurance
 
482.7

 
453.1

Deduct:
 
 
 
 
Losses and LAE payments made during current calendar year, net of reinsurance:
 
 
 
 
Current accident year
 
152.1

 
88.9

Prior accident years
 
327.0

 
290.8

Losses and LAE payments made during current calendar year, net of reinsurance:
 
479.1

 
379.7

Change in participation interest (1)
 
(29.4
)
 
(23.2
)
Foreign exchange adjustments
 
(24.0
)
 
1.8

Net reserves - end of period
 
2,487.6

 
2,364.8

Add:
 
 
 
 
Reinsurance recoverables on unpaid losses and LAE, end of period
 
1,755.3

 
1,268.0

Gross reserves - end of period
 
$
4,242.9

 
$
3,632.8

(1) 
Amount represents the change in reserves due to changing our participation in Syndicates 1200 and 1910.
Reserves for losses and LAE represent the estimated indemnity cost and related adjustment expenses necessary to investigate and settle claims. Such estimates are based upon individual case estimates for reported claims, estimates from ceding companies for reinsurance assumed and actuarial estimates for losses that have been incurred but not yet reported to the insurer. Any change in probable ultimate liabilities is reflected in current operating results.
The impact from the (favorable) unfavorable development of prior accident years’ loss and LAE reserves on each reporting segment is presented below: 
 
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
U.S. Operations
 
$
(4.1
)
 
$
(18.0
)
International Operations
 
(3.3
)
 
19.6

Run-off Lines
 
3.0

 
4.1

Total (favorable) unfavorable prior-year development
 
$
(4.4
)
 
$
5.7


The following describes the primary factors behind each segment’s prior accident year reserve development for the six months ended June 30, 2018 and 2017:
Six months ended June 30, 2018:
U.S. Operations: Favorable development in liability and surety lines, partially offset by unfavorable development in commercial multi-peril lines.
International Operations: Favorable development in property lines, partially offset by unfavorable development within specialty lines.  
Run-off Lines: Unfavorable development in risk management lines and other run-off lines.
Six months ended June 30, 2017:
U.S. Operations: Favorable development for workers compensation, surety, commercial auto, and commercial multi-peril lines.
International Operations: Unfavorable development in the property, liability, and specialty lines
Run-off Lines: Unfavorable development in risk management lines and other run-off lines.
In the opinion of management, our reserves represent the best estimate of our ultimate liabilities, based on currently known facts, current law, current technology and assumptions considered reasonable where facts are not known. Due to the significant uncertainties and related management judgments, there can be no assurance that future favorable or unfavorable loss development, which may be material, will not occur.
v3.10.0.1
Disclosures about Fair Value of Financial Instruments
6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Disclosures about Fair Value of Financial Instruments
Disclosures about Fair Value of Financial Instruments
Cash. The carrying amount approximates fair value.
Investment securities and short-term investments. See Note 4, “Investments,” for additional information.
Premiums receivable and reinsurance recoverables on paid losses. The carrying value of current receivables and reinsurance recoverables on paid losses approximates fair value.                          
Debt. At June 30, 2018 and December 31, 2017, the fair value of our Junior subordinated debentures, Senior unsecured fixed rate notes and Other indebtedness was estimated using appropriate market indices or quoted prices from external sources based on current market conditions. All of these debt instruments would be in Level 3 of the fair value hierarchy, as the fair value estimates shown below were calculated using unobservable inputs reflecting our assumptions about the assumptions market participants would use in pricing the liabilities.
A summary of our financial instruments whose carrying value did not equal fair value is shown below:
 
 
June 30, 2018
 
December 31, 2017
(in millions)
 
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
Junior subordinated debentures
 

 

 
 
 
 
Trust preferred debentures
 
$
172.7

 
$
172.9

 
$
172.7

 
$
172.9

Subordinated debentures acquired with Maybrooke
 
84.1

 
83.3

 
83.9

 
85.0

Senior unsecured fixed rate notes
 
139.7

 
141.1

 
139.6

 
141.2

Floating rate loan stock
 
59.0

 
59.0

 
58.9

 
59.0

v3.10.0.1
Shareholders' Equity
6 Months Ended
Jun. 30, 2018
Equity [Abstract]  
Shareholders' Equity
Shareholders’ Equity
On February 20, 2018, the Board of Directors declared a 15% stock dividend, payable March 21, 2018 to all shareholders of record at the close of business on March 7, 2018. As a result of the stock dividend, 4,397,520 additional shares were issued. Cash was paid in lieu of fractional shares of our common shares. Excluding repurchased shares, all references to common shares and related per share amounts in this document and related disclosures have been adjusted to reflect the stock dividend for all periods presented.
On May 8, 2018, our Board of Directors declared a quarterly cash dividend in the amount of $0.27 on each share of common stock outstanding. On June 15, 2018, we paid $9.4 million to our shareholders of record on June 1, 2018.
On June 1, 2017, our Board of Directors declared a quarterly cash dividend in the amount of $0.23 on each share of common stock outstanding, on a post-stock dividend basis. On June 26, 2017, we paid $8.3 million to our shareholders of record on June 12, 2017.
On May 3, 2016, our Board of Directors authorized the repurchase of up to $150.0 million of our common shares (“2016 Repurchase Authorization”). The 2016 Repurchase Authorization supersedes all previous Repurchase Authorizations. As of June 30, 2018, availability under the 2016 Repurchase Authorization for future repurchases of our common shares was $64.6 million.
For the six months ended June 30, 2018, we repurchased a total of 344,533 common shares for $20.4 million. A summary of activity from January 1, 2018 through June 30, 2018 follows.
A summary of common shares repurchased for the six months ended June 30, 2018 is shown below:
 
Repurchase Type
 
Date
Trading Plan
Initiated
 
2018 Purchase Period
 
Number of
Shares
Repurchased
 
Average Price
of Shares
Repurchased
 
Total Cost
(in millions)
 
Repurchase
Authorization
Year
10b5-1 Trading Plan
 
12/15/2017
 
01/02/2018-02/16/2018
 
225,281

 
$
59.31

 
$
13.3

 
2016
10b5-1 Trading Plan
 
6/15/2018
 
06/22/2018-06/29/2018
 
29,947

 
$
58.86

 
1.8

 
2016
Open Market
 
N/A
 
02/20/2018-03/02/2018
 
89,305

 
$
59.03

 
5.3

 
2016
Total
 

 

 
344,533

 
$
59.20

 
$
20.4

 
 
v3.10.0.1
Accumulated Other Comprehensive (Loss) Income
6 Months Ended
Jun. 30, 2018
Equity [Abstract]  
Accumulated Other Comprehensive (Loss) Income
Accumulated Other Comprehensive (Loss) Income
A summary of changes in accumulated other comprehensive (loss) income, net of taxes (where applicable) by component for the six months ended June 30, 2018, and 2017 is presented below:
(in millions)
 
Foreign Currency Translation Adjustments
 
Unrealized
Holding Gains
on Securities
 
Defined Benefit Pension Plans
 
Total
Balance, January 1, 2018
 
$
(19.0
)
 
$
121.9

 
$
(6.3
)
 
$
96.6

Cumulative effect of adoption of ASU 2016-01
 

 
(117.5
)
 

 
(117.5
)
Cumulative effect of adoption of ASU 2018-02
 

 
22.1

 
(1.4
)
 
20.7

Other comprehensive income (loss) before reclassifications
 
(4.0
)
 
(52.1
)
 

 
(56.1
)
Amounts reclassified from accumulated other comprehensive income (loss)
 

 
2.4

 

 
2.4

Net current-period other comprehensive income (loss)
 
(4.0
)
 
(145.1
)
 
(1.4
)
 
(150.5
)
Balance at June 30, 2018
 
$
(23.0
)
 
$
(23.2
)
 
$
(7.7
)
 
$
(53.9
)
 
(in millions)
 
Foreign Currency Translation Adjustments
 
Unrealized
Holding Gains
on Securities
 
Defined Benefit Pension Plans
 
Total
Balance, January 1, 2017
 
$
(17.6
)
 
$
72.4

 
$
(7.1
)
 
$
47.7

Other comprehensive income (loss) before reclassifications
 
(0.6
)
 
45.7

 

 
45.1

Amounts reclassified from accumulated other comprehensive income (loss)
 

 
(12.7
)
 

 
(12.7
)
Net current-period other comprehensive income (loss)
 
(0.6
)
 
33.0

 

 
32.4

Balance at June 30, 2017
 
$
(18.2
)
 
$
105.4

 
$
(7.1
)
 
$
80.1


 
The amounts reclassified from accumulated other comprehensive income (loss) shown in the above table have been included in the following captions in our Consolidated Statements of Income:
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Unrealized gains and losses on securities:
 
 
 
 
 
 
 
 
Net realized investment gains (losses)
 
$
15.1

 
$
(2.7
)
 
$
2.6

 
$
(18.9
)
Provision for income taxes
 
(2.5
)
 
1.0

 
(0.2
)
 
6.2

Net of taxes
 
$
12.6

 
$
(1.7
)
 
$
2.4

 
$
(12.7
)
v3.10.0.1
Net Income Per Common Share
6 Months Ended
Jun. 30, 2018
Earnings Per Share [Abstract]  
Net Income Per Common Share
Net Income Per Common Share
The following table presents the calculation of net income per common share on a basic and diluted basis:
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions, except number of shares and per share amounts)
 
2018
 
2017
 
2018
 
2017
Net income
 
$
41.8

 
$
46.0

 
$
66.6

 
$
82.7

Weighted average common shares outstanding - basic
 
33,938,509

 
34,731,866

 
33,903,809

 
34,643,594

Effect of dilutive securities:
 
 
 
 
 
 
 
 
Equity compensation awards
 
730,409

 
973,618

 
801,002

 
1,001,046

Weighted average common shares outstanding - diluted
 
34,668,918

 
35,705,484

 
34,704,811

 
35,644,640

Net income per common share:
 
 
 
 
 
 
 
 
Basic
 
$
1.23

 
$
1.32

 
$
1.96

 
$
2.39

Diluted
 
$
1.20

 
$
1.29

 
$
1.92

 
$
2.32


Excluded from the weighted average common shares outstanding calculation at June 30, 2018 and 2017 are 11,129,540 shares and 10,075,255 shares, respectively, which are held as treasury shares. The shares are excluded as of their repurchase date. For both the three and six months ended June 30, 2018 and 2017, there were no equity compensation awards with an anti-dilutive effect.
v3.10.0.1
Supplemental Cash Flow Information
6 Months Ended
Jun. 30, 2018
Supplemental Cash Flow Elements [Abstract]  
Supplemental Cash Flow Information
Supplemental Cash Flow Information
Interest paid and income taxes paid (recovered) were as follows:  
 
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
Senior unsecured fixed rate notes
 
$
4.7

 
$
4.7

Junior subordinated debentures
 
7.1

 
6.0

Other indebtedness
 
3.3

 
1.6

Revolving credit facility
 
0.3

 
0.3

Total interest paid
 
$
15.4

 
$
12.6

 
 
 
 
 
Income taxes paid
 
8.2

 
9.9

Income taxes recovered
 

 
(2.2
)
Income taxes paid, net
 
$
8.2

 
$
7.7

v3.10.0.1
Share-based Compensation
6 Months Ended
Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-based Compensation
Share-based Compensation
The fair value method of accounting is used for share-based compensation plans. Under the fair value method, compensation cost is measured based on the fair value of the award at the measurement date and recognized over the requisite service period. We use the Black-Scholes model to estimate the fair values on the measurement date for share options and share appreciation rights (“SARs”). The Black-Scholes model uses several assumptions to value a share award. The risk-free rate of return assumption is based on the five-year U.S. Treasury constant maturity rate on the measurement date. The expected dividend yield is based on our history and expected dividend payouts. The expected award life is based upon the average holding period over the history of the incentive plan. The expected volatility assumption is based on the historical change in our stock price over the previous five years preceding the measurement date.
The following table summarizes the assumptions we used for the six months ended June 30, 2018 and 2017:
 
 
For the Six Months Ended June 30,
 
 
2018
 
2017
Risk-free rate of return
 
2.73%
 
1.83%
Expected dividend yields
 
1.87%
 
1.68%
Expected award life (years)
 
4.49
 
4.48
Expected volatility
 
18.13%
 
18.64%

 
All outstanding awards were adjusted to reflect the 15% stock dividend, resulting in a 15% increase to the number of awards outstanding and a 13.04% reduction in the exercise price.
Argo Group’s Long-Term Incentive Plan
In November 2007, our shareholders approved the 2007 Long-Term Incentive Plan (the “2007 Plan”), which provides for an aggregate of 4.5 million shares of our common stock that may be issued to executives, non-employee directors, and other key employees. As of May 2014, 1.46 million shares remained available for grant under the 2007 Plan. In May 2014, our shareholders approved the 2014 Long-Term Incentive Plan (the “2014 Plan”), which provides for an additional 2.8 million shares of our common stock to be available for issuance to executives, non-employee directors and other key employees. The share awards may be in the form of share options, SARs, restricted shares, restricted share awards, restricted share unit awards, performance awards, other share-based awards and other cash-based awards. Shares issued under this plan may be shares that are authorized and unissued or shares that we reacquired, including shares purchased on the open market. Share options and SARs will count as one share for the purposes of the limits under the incentive plans; restricted shares, restricted share units, performance units, performance shares or other share-based incentive awards which settle in common shares will count as 2.75 shares for purpose of the limits under the 2014 Plan.
Share options may be in the form of incentive share options, non-qualified share options and restorative options. Share options are required to have an exercise price that is not less than the market value on the date of grant. We are prohibited from repricing the options, except for the impact of stock dividend declarations. The term of the share options cannot exceed seven years from the grant date.
Restricted Shares
A summary of restricted share activity as of June 30, 2018 and changes during the six months ended is as follows:
 
 
 
Shares
 
Weighted-Average
Grant Date
Fair Value
Outstanding at January 1, 2018
 
767,140

 
$
42.91

Granted
 
319,134

 
$
47.57

Vested and issued
 
(199,193
)
 
$
42.99

Expired or forfeited
 
(85,003
)
 
$
44.74

Outstanding at June 30, 2018
 
802,078

 
$
44.55


 
The restricted shares vest over one to eight years. Expense recognized under this plan for the restricted shares was $4.8 million and $8.2 million for the three and six months ended June 30, 2018, respectively, as compared to $2.4 million and $5.2 million for the three and six months ended June 30, 2017. Compensation expense for all share-based compensation awards is included in “Underwriting, acquisition and insurance expenses” in the accompanying Consolidated Statements of Income. As of June 30, 2018, there was $26.6 million of total unrecognized compensation cost related to restricted share compensation arrangements granted by Argo Group.
Stock-Settled SARs
A summary of stock-settled SARs activity as of June 30, 2018 and changes during the six months ended is as follows:
 
 
 
Shares
 
Weighted-Average
Exercise Price
Outstanding at January 1, 2018
 
1,494,458

 
$
30.85

Exercised
 
(464,807
)
 
$
27.07

Expired or forfeited
 
(14,947
)
 
$
36.25

Outstanding at June 30, 2018
 
1,014,704

 
$
32.50


 
The stock-settled SARs vest over a one to four-year period. Upon exercise of the stock-settled SARs, the employee is entitled to receive shares of our common stock equal to the appreciation of the stock as compared to the exercise price. Expense recognized for the stock-settled SARs was $0.4 million and $1.5 million for the three and six months ended June 30, 2018, respectively, as compared to $2.0 million and $2.7 million for the three and six months ended June 30, 2017. As of June 30, 2018, there was $1.2 million of total unrecognized compensation cost related to stock-settled SARs outstanding.
Cash-Settled SARs
A summary of cash-settled SARs activity as of June 30, 2018 and changes during the six months ended is as follows:
 
 
 
Shares
 
Weighted-Average
Exercise Price
Outstanding at January 1, 2018
 
189,568

 
$
28.95

Exercised
 
(68,955
)
 
$
28.56

Expired or forfeited
 
(2,568
)
 
$
21.23

Outstanding at June 30, 2018
 
118,045

 
$
29.35


 
As of June 30, 2018, all the cash-settled SARs are fully vested. Upon exercise of the cash-settled SARs, the employee is entitled to receive cash payment for the appreciation in the value of our common stock over the exercise price. We account for the cash-settled SARs as liability awards, which require the awards to be revalued at each reporting period. Expense recognized for the cash-settle SARs was $0.3 million and $0.8 million for the three and six months ended June 30, 2018, respectively. For the three and six months ended June 30, 2017, we recouped $2.3 million and $0.9 million of expense, respectively, primarily related to a decrease in the fair market value of our stock. As of June 30, 2018, there was no unrecognized compensation cost related to cash-settled SARs outstanding.
v3.10.0.1
Underwriting, Acquisition and Insurance Expenses
6 Months Ended
Jun. 30, 2018
Underwriting Acquisition And Insurance Expenses [Abstract]  
Underwriting, Acquisition and Insurance Expenses
Underwriting, Acquisition and Insurance Expenses
The components of our underwriting, acquisition and insurance expenses are detailed in the table below. General expenses includes certain costs associated with our holding company.
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Commissions
 
$
56.7

 
$
69.2

 
$
124.7

 
$
130.4

General expenses
 
90.6

 
88.0

 
178.4

 
176.7

Premium taxes, boards and bureaus
 
8.1

 
6.7

 
17.4

 
14.1

 
 
155.4

 
163.9

 
320.5

 
321.2

Net amortization (deferral) of policy acquisition costs
 
1.4

 
(9.2
)
 
(3.5
)
 
(12.9
)
Total underwriting, acquisition and insurance expenses
 
$
156.8

 
$
154.7

 
$
317.0

 
$
308.3

v3.10.0.1
Income Taxes
6 Months Ended
Jun. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
We are incorporated under the laws of Bermuda and, under current Bermuda law, are not obligated to pay any taxes in Bermuda based upon income or capital gains. We have received an undertaking from the Supervisor of Insurance in Bermuda pursuant to the provisions of the Exempted Undertakings Tax Protection Act, 2011, which exempts us from any Bermuda taxes computed on profits, income or any capital asset, gain or appreciation or any tax in the nature of estate duty or inheritance tax, at least until the year 2035.
We do not consider ourselves to be engaged in a trade or business in the United States or the United Kingdom and, accordingly, do not expect to be subject to direct United States or United Kingdom income taxation.
We have subsidiaries based in the United Kingdom that are subject to the tax laws of that country. Under current law, these subsidiaries are taxed at the applicable corporate tax rates. Eight of the United Kingdom subsidiaries are deemed to be engaged in business in the United States, and therefore, are subject to United States corporate tax in respect of a proportion of their United States underwriting business only. Relief is available against the United Kingdom tax liabilities in respect of overseas taxes paid that arise from the underwriting business. Our United Kingdom subsidiaries file separate United Kingdom income tax returns.
We have subsidiaries based in the United States that are subject to United States tax laws. Under current law, these subsidiaries are taxed at the applicable corporate tax rates. Our United States subsidiaries generally file a consolidated United States federal income tax return.
We also have operations in Belgium, Brazil, France, Ireland, Italy, Luxembourg, Malta, Spain, and Switzerland, which also are subject to income taxes imposed by the jurisdiction in which they operate. We have operations in Barbados and the United Arab Emirates, which are not subject to income tax under the laws of those countries.
On December 22, 2017, U.S. tax legislation referred to as the TCJA was enacted. The effects of changes in tax laws and tax rates are recognized in the period of enactment. Accordingly, we recorded the impacts of the TCJA in our 2017 consolidated financial statements which, among other changes, primarily includes the remeasurement of our deferred tax assets and liabilities for the reduced US federal tax rate from 35% to 21% beginning on January 1, 2018, and the computation of a provisional amount for the loss reserve discounting modifications. We are still analyzing certain aspects of the TCJA and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. We have not made any adjustments to the provisional amounts we recorded during the year ended December 31, 2017. Beginning in 2018, the TCJA introduces an additional Base Erosion and Anti-abuse Tax (“BEAT”) provision computed to be an additional liability in excess of the regular US tax liability based upon an alternative BEAT computation. At this time, we have not recorded any provisional amounts for BEAT as we are awaiting information from Lloyd’s to determine the effect of BEAT on our US branches within our UK operations. Thus, our 2018 consolidated financial statements reflect a reasonably estimated provisional amount based on information available and in accordance with SAB 118. SAB 118 provides guidance on accounting for the effects of the U.S. tax reform where our determinations are incomplete but we are able to determine a reasonable estimate. A final determination is required to be made within a measurement period not to extend beyond one year from the enactment date of the U.S. tax reform. As additional guidance is released, the estimate will be updated as necessary.
Our expected income tax provision computed on pre-tax income (loss) at the weighted average tax rate has been calculated as the sum of the pre-tax income (loss) in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. For the three and six months ended June 30, 2018 and 2017, pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows:
 
 
 
For the Three Months Ended June 30,
(in millions)
 
2018
 
2017
 
 
Pre-Tax
Income (Loss)
 
Effective
Tax
Rate
 
Pre-Tax
Income (Loss)
 
Effective
Tax
Rate
Bermuda
 
$
(33.6
)
 
 %
 
$
25.3

 
%
United States
 
85.7

 
17.1
 %
 
34.7

 
23.3
%
United Kingdom
 
6.6

 
10.1
 %
 
(6.5
)
 
52.8
%
Belgium
 
(0.1
)
 
36.4
 %
 
0.1

 
36.6
%
Brazil
 
0.1

 
 %
 
0.6

 
%
United Arab Emirates
 
0.2

 
 %
 
(2.2
)
 
%
Ireland
 
(0.1
)
 
 %
 

(1) 
%
Italy
 
(1.1
)
 
 %
 

 
%
Malta
 
(0.6
)
 
(0.2
)%
 
0.5

 
%
Luxembourg
 

(1) 
 %
 
(1.7
)
 
%
Switzerland
 

(1) 
20.8
 %
 

(1) 
22.1
%
Pre-tax income
 
$
57.1

 
26.9
 %
 
$
50.8

 
9.4
%

 
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
 
Pre-Tax
Income (Loss)
 
Effective
Tax
Rate
 
Pre-Tax
Income (Loss)
 
Effective
Tax
Rate
Bermuda
 
$
(8.4
)
 
%
 
$
51.7

 
%
United States
 
79.5

 
16.6
%
 
58.7

 
24.8
%
United Kingdom
 
12.7

 
17.1
%
 
(12.0
)
 
32.3
%
Belgium
 

(1) 
%
 
0.1

 
36.2
%
Brazil
 
(1.3
)
 
%
 
(0.2
)
 
%
United Arab Emirates
 
0.4

 
%
 
(3.5
)
 
%
Ireland
 
(0.1
)
 
%
 

(1) 
%
Italy
 
(1.1
)
 
%
 

 
%
Malta
 
0.4

 
0.2
%
 
1.1

 
%
Luxembourg
 

(1) 
%
 
(2.4
)
 
%
Switzerland
 

(1) 
20.8
%
 

(1) 
20.8
%
Pre-tax income
 
$
82.1

 
18.9
%
 
$
93.5

 
11.5
%
(1) 
Pre-tax income for the respective year was less than $0.1 million.
Our effective tax rate may vary significantly from period to period depending on the jurisdiction generating the pre-tax income (loss) and its corresponding statutory tax rate. The geographic distribution of pre-tax income (loss) can fluctuate significantly between periods given the inherit nature of our business. A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows:
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Income tax (benefit) provision at expected rate
 
$
18.8

 
$
10.8

 
$
18.4

 
$
18.0

Tax effect of:
 
 
 
 
 
 
 
 
Nontaxable investment income
 
(0.5
)
 
(1.1
)
 
(1.0
)
 
(2.4
)
Foreign exchange adjustments
 

 
(0.9
)
 
(0.2
)
 
(0.3
)
Withholding taxes
 
0.2

 
0.2

 
0.3

 
0.3

Change in valuation allowance
 
(0.7
)
 
(1.0
)
 
(3.4
)
 
(1.1
)
Other
 
(2.5
)
 
(3.2
)
 
1.4

 
(3.7
)
Income tax provision
 
$
15.3

 
$
4.8

 
$
15.5

 
$
10.8


 
Our gross deferred tax assets are supported by taxes paid in previous periods, reversal of taxable temporary differences and recognition of future taxable income. Management regularly evaluates the recoverability of the deferred tax assets and makes any necessary adjustments to them based upon any changes in management’s expectations of future taxable income. Realization of deferred tax assets is dependent upon our generation of future taxable income sufficient to recover tax benefits that cannot be recovered from taxes paid in the carryback period, generally for our US property and casualty insurers two years for net operating losses and for all our US subsidiaries three years for capital losses. If a company determines that any of its deferred tax assets will not result in future tax benefits, a valuation allowance must be established for the portion of these assets that are not expected to be realized. The net change in valuation allowance for deferred tax assets was a decrease of $3.4 million in 2018 relating to the items discussed below. Based upon a review of our available evidence, both positive and negative discussed above, our management concluded that it is more-likely-than-not that the other deferred tax assets will be realized.
Management has determined that a valuation allowance is required for a portion of the tax-effected net operating loss carryforward included as part of the United States consolidated group of $6.9 million generated from PXRE Corporation and for the tax effected net operating loss carryforward of $0.6 million from ARIS. The valuation allowances have been established as Internal Revenue Code Section 382 limits regarding the application of net operating loss carryforwards following an ownership change. The loss carryforwards available per year for both of these items are $2.8 million, as required by Internal Revenue Code Section 382.
Furthermore, due to cumulative losses incurred since inception, management has concluded that a valuation allowance is required for the full amount of the tax-effected net operating losses generated by our Brazil and Malta entities. Additionally, valuation allowances were established for our Luxembourg and US affiliates acquired in the Maybrooke transaction as well as our Italian operations acquired in the Ariscom transaction.
Accordingly, a valuation allowance is required as of June 30, 2018 of which $6.6 million relates to Brazil operations, $5.8 million relates to Italian operations and $1.2 million relates to Malta operations. During the six months ended June 30, 2018, the affiliates of Maybrooke Holdings SA have a valuation allowance established in the amount of $1.2 million. The change from 2017 was primarily driven from the liquidation of our Luxembourg affiliate as of March 23, 2018.
For any uncertain tax positions not meeting the “more-likely-than-not” recognition threshold, accounting standards require recognition, measurement and disclosure in a company’s financial statements. We had no material unrecognized tax benefits as of June 30, 2018 and 2017. Our United States subsidiaries are no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2014. Our United Kingdom subsidiaries are no longer subject to United Kingdom income tax examinations by Her Majesty’s Revenue and Customs for years before 2016.
v3.10.0.1
Commitments and Contingencies
6 Months Ended
Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
Argo Group’s subsidiaries are parties to legal actions incidental to their business. Based on the opinion of counsel, management believes that the resolution of these matters will not materially affect our financial condition or results of operations.
We have contractual commitments to invest up to $114.9 million related to our limited partnership investments at June 30, 2018. These commitments will be funded as required by the partnership agreements which can be called to be fulfilled at any time, not to exceed thirteen years
v3.10.0.1
Segment Information
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segment Information
Segment Information
We are primarily engaged in underwriting property and casualty insurance and reinsurance. We have two ongoing reporting segments: U.S. Operations and International Operations. Additionally, we have a Run-off Lines segment for certain products that we no longer underwrite.
We consider many factors, including the nature of each segment’s insurance and reinsurance products, production sources, distribution strategies and the regulatory environment, in determining how to aggregate reporting segments. Transactions between segments are reported in the segment that initiated the transaction.
In evaluating the operating performance of our segments, we focus on core underwriting and investing results before the consideration of realized gains or losses from investments. Realized investment gains are reported as a component of the Corporate and Other segment, as decisions regarding the acquisition and disposal of securities reside with the corporate investment function and are not under the control of the individual business segments. Identifiable assets by segment are those assets used in the operation of each segment.
Revenue and income (loss) before income taxes for each segment were as follows:
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Revenue:
 
 
 
 
 
 
 
 
Earned premiums
 
 
 
 
 
 
 
 
U.S. Operations
 
$
267.0

 
$
229.1

 
$
529.3

 
$
450.3

International Operations
 
150.5

 
169.9

 
302.9

 
328.1

Run-off Lines
 
0.2

 
0.1

 
0.2

 
0.1

Total earned premiums
 
417.7

 
399.1

 
832.4

 
778.5

Net investment income
 
 
 
 
 
 
 
 
U.S. Operations
 
20.7

 
27.3

 
43.3

 
47.2

International Operations
 
8.4

 
10.1

 
17.2

 
16.7

Run-off Lines
 
2.0

 
2.9

 
4.2

 
5.0

Corporate and Other
 
2.1

 
3.3

 
4.5

 
5.2

Total net investment income
 
33.2

 
43.6

 
69.2

 
74.1

Fee and other income
 
1.9

 
3.8

 
3.9

 
7.4

Net realized investment gains (losses)
 
10.5

 
4.5

 
(5.2
)
 
19.1

Total revenue
 
$
463.3

 
$
451.0

 
$
900.3

 
$
879.1

 
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Income (loss) before income taxes
 
 
 
 
 
 
 
 
U.S. Operations
 
$
42.5

 
$
53.0

 
$
76.5

 
$
90.2

International Operations
 
13.2

 
9.1

 
36.1

 
17.4

Run-off Lines
 
(0.3
)
 
(1.2
)
 
(1.0
)
 
(3.7
)
Total segment income before taxes
 
55.4

 
60.9

 
111.6

 
103.9

Corporate and Other
 
(8.8
)
 
(14.6
)
 
(24.3
)
 
(29.5
)
Net realized investment gains (losses)
 
10.5

 
4.5

 
(5.2
)
 
19.1

Total income before income taxes
 
$
57.1

 
$
50.8

 
$
82.1

 
$
93.5


The table below presents earned premiums by geographic location for the three and six months ended June 30, 2018 and 2017. For this disclosure, we determine geographic location by the country of domicile of our subsidiaries that underwrite the business and not by the location of insureds or reinsureds from whom the business was generated.
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Bermuda
 
$
20.9

 
$
23.1

 
$
41.4

 
$
48.7

Brazil
 
10.5

 
12.3

 
23.5

 
25.1

Italy
 
2.8

 

 
2.8

 

Malta
 
15.7

 
1.3

 
21.4

 
2.3

United Kingdom
 
102.0

 
133.3

 
216.1

 
252.1

United States
 
265.8

 
229.1

 
527.2

 
450.3

Total earned premiums
 
$
417.7

 
$
399.1

 
$
832.4

 
$
778.5


The following table represents identifiable assets:
(in millions)
 
June 30, 2018
 
December 31, 2017
U.S. Operations
 
$
4,490.6

 
$
4,298.4

International Operations
 
3,762.7

 
3,553.8

Run-off Lines
 
453.8

 
449.6

Corporate and Other
 
398.6

 
462.2

Total
 
$
9,105.7

 
$
8,764.0


Included in total assets at June 30, 2018 and December 31, 2017 are $765.7 million and $731.8 million, respectively, in assets associated with trade capital providers.
v3.10.0.1
Senior Unsecured Fixed Rate Notes
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Senior Unsecured Fixed Rate Notes
Senior Unsecured Fixed Rate Notes 
In September 2012, Argo Group (the “Parent Guarantor”), through its subsidiary Argo Group US (the “Subsidiary Issuer”), issued $143,750,000 aggregate principal amount of the Subsidiary Issuer’s 6.5% Senior Notes due September 15, 2042 (the “Notes”). The Notes are unsecured and unsubordinated obligations of the Subsidiary Issuer and rank equally in right of payment with all of the Subsidiary Issuer’s other unsecured and unsubordinated debt. The Notes are guaranteed on a full and unconditional senior unsecured basis by the Parent Guarantor. The Notes may be redeemed, for cash, in whole or in part, on or after September 15, 2017, at the Subsidiary Issuer’s option, at any time and from time to time, prior to maturity at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date.
In accordance with ASU 2015-3, “Simplifying the Presentation of Debt Issuance Costs” (Topic 835), we present the unamortized debt issuance costs in the balance sheet as a direct deduction from the carrying value of the debt liability. At June 30, 2018 and December 31, 2017, the Notes consisted of the following:
(in millions)
 
June 30, 2018
 
December 31, 2017
Senior unsecured fixed rate notes
 
 
 
 
Principal
 
$
143.8

 
$
143.8

Less: unamortized debt issuance costs
 
(4.1
)
 
(4.2
)
Senior unsecured fixed rate notes, less unamortized debt issuance costs
 
$
139.7

 
$
139.6


 
In accordance with Article 10 of SEC Regulation S-X, we have elected to present condensed consolidating financial information in lieu of separate financial statements for the Subsidiary Issuer. The following tables present condensed consolidating financial information at June 30, 2018 and December 31, 2017 and for the three and six months ended June 30, 2018 and 2017, of the Parent Guarantor and the Subsidiary Issuer. The Subsidiary Issuer is an indirect wholly-owned subsidiary of the Parent Guarantor. Investments in subsidiaries are accounted for by the Parent Guarantor under the equity method for purposes of the supplemental consolidating presentation. Earnings of subsidiaries are reflected in the Parent Guarantor’s investment accounts and earnings.
The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer. Condensed consolidating financial information of the Subsidiary Issuer is presented on a consolidated basis and consists principally of the net assets, results of operations and cash flows of operating insurance company subsidiaries.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2018
(in millions)
(Unaudited)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Assets
 
 
 
 
 
 
 
 
 
 
Investments
 
$
1.2

 
$
3,107.6

 
$
1,660.1

 
$

 
$
4,768.9

Cash
 
1.0

 
19.3

 
106.4

 

 
126.7

Accrued investment income
 

 
18.6

 
6.3

 

 
24.9

Premiums receivable
 

 
221.8

 
476.3

 

 
698.1

Reinsurance recoverables
 

 
1,548.5

 
583.1

 

 
2,131.6

Goodwill and other intangible assets, net
 
42.6

 
124.6

 
106.1

 

 
273.3

Deferred acquisition costs, net
 

 
82.9

 
78.2

 

 
161.1

Ceded unearned premiums
 

 
221.9

 
271.5

 

 
493.4

Other assets
 
9.6

 
178.4

 
239.7

 

 
427.7

Intercompany note receivable
 

 
52.2

 
(52.2
)
 

 

Investments in subsidiaries
 
1,968.3

 

 

 
(1,968.3
)
 

Total assets
 
$
2,022.7

 
$
5,575.8

 
$
3,475.5

 
$
(1,968.3
)
 
$
9,105.7

Liabilities and Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
Reserves for losses and loss adjustment expenses
 
$

 
$
2,575.3

 
$
1,667.6

 
$

 
$
4,242.9

Unearned premiums
 

 
721.8

 
561.8

 

 
1,283.6

Funds held and ceded reinsurance payable, net
 

 
754.2

 
102.6

 

 
856.8

Debt
 
153.4

 
284.7

 
143.0

 

 
581.1

Current income taxes payable, net
 

 
14.4

 
(0.9
)
 

 
13.5

Deferred tax liabilities, net
 

 
15.4

 
(0.3
)
 

 
15.1

Accrued underwriting expenses and other liabilities
 
11.2

 
94.6

 
209.8

 

 
315.6

Due to (from) affiliates
 
61.0

 
1.0

 
(1.0
)
 
(61.0
)
 

Total liabilities
 
225.6

 
4,461.4

 
2,682.6

 
(61.0
)
 
7,308.6

Total shareholders' equity
 
1,797.1

 
1,114.4

 
792.9

 
(1,907.3
)
 
1,797.1

Total liabilities and shareholders' equity
 
$
2,022.7

 
$
5,575.8

 
$
3,475.5

 
$
(1,968.3
)
 
$
9,105.7

 
(1) 
Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
(2) 
Includes all Argo Group parent company eliminations.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2017
(in millions)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Assets
 
 
 
 
 
 
 
 
 
 
Investments
 
$
0.4

 
$
3,079.0

 
$
1,663.5

 
$

 
$
4,742.9

Cash
 
0.9

 
47.8

 
127.9

 

 
176.6

Accrued investment income
 

 
18.0

 
5.5

 

 
23.5

Premiums receivable
 

 
216.5

 
382.1

 

 
598.6

Reinsurance recoverables
 

 
1,487.3

 
606.0

 

 
2,093.3

Goodwill and other intangible assets, net
 
43.2

 
124.9

 
90.1

 

 
258.2

Current income taxes receivable, net
 

 
2.4

 
(1.0
)
 

 
1.4

Deferred acquisition costs, net
 

 
80.7

 
79.7

 

 
160.4

Ceded unearned premiums
 

 
198.5

 
201.0

 

 
399.5

Other assets
 
9.2

 
171.5

 
128.9

 

 
309.6

Intercompany note receivable
 

 
50.9

 
(50.9
)
 

 

Investments in subsidiaries
 
1,940.0

 

 

 
(1,940.0
)
 

Total assets
 
$
1,993.7

 
$
5,477.5

 
$
3,232.8

 
$
(1,940.0
)
 
$
8,764.0

Liabilities and Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
Reserves for losses and loss adjustment expenses
 
$

 
$
2,483.9

 
$
1,717.1

 
$

 
$
4,201.0

Unearned premiums
 

 
704.0

 
503.7

 

 
1,207.7

Funds held and ceded reinsurance payable, net
 

 
799.4

 
(22.7
)
 

 
776.7

Long-term debt
 
153.4

 
284.5

 
142.8

 

 
580.7

Deferred tax liabilities, net
 

 
32.5

 
(1.2
)
 

 
31.3

Accrued underwriting expenses and other liabilities
 
8.9

 
95.0

 
43.0

 

 
146.9

Due to (from) affiliates
 
11.7

 
(0.4
)
 
0.4

 
(11.7
)
 

Total liabilities
 
174.0

 
4,398.9

 
2,383.1

 
(11.7
)
 
6,944.3

Total shareholders' equity
 
1,819.7

 
1,078.6

 
849.7

 
(1,928.3
)
 
1,819.7

Total liabilities and shareholders' equity
 
$
1,993.7

 
$
5,477.5

 
$
3,232.8

 
$
(1,940.0
)
 
$
8,764.0

 
(1) 
Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
(2) 
Includes all Argo Group parent company eliminations.

CONDENSED CONSOLIDATING STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2018
(in millions)
(Unaudited)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Premiums and other revenue:
 
 
 
 
 
 
 
 
 
 
Earned premiums
 
$

 
$
267.0

 
$
150.7

 
$

 
$
417.7

Net investment (expense) income
 
(0.7
)
 
19.0

 
14.9

 

 
33.2

Fee and other income
 

 
0.7

 
1.2

 

 
1.9

Net realized investment gains (losses)
 
0.5

 
14.5

 
(4.5
)
 

 
10.5

Total revenue
 
(0.2
)
 
301.2

 
162.3

 

 
463.3

Expenses:
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 

 
114.4

 
131.1

 

 
245.5

Underwriting, acquisition and insurance
   expenses
 
5.8

 
95.5

 
55.5

 

 
156.8

Interest expense
 
1.6

 
4.5

 
1.7

 

 
7.8

Fee and other expense
 

 
1.1

 
0.5

 

 
1.6

Foreign currency exchange losses (gains)
 

 
0.1

 
(5.6
)
 

 
(5.5
)
Total expenses
 
7.4

 
215.6

 
183.2

 

 
406.2

(Loss) income before income taxes
 
(7.6
)
 
85.6

 
(20.9
)
 

 
57.1

Provision for income taxes
 

 
14.6

 
0.7

 

 
15.3

Net (loss) income before equity in earnings of subsidiaries
 
(7.6
)
 
71.0

 
(21.6
)
 

 
41.8

Equity in undistributed earnings of subsidiaries
 
49.4

 

 

 
(49.4
)
 

Net income
 
$
41.8

 
$
71.0

 
$
(21.6
)
 
$
(49.4
)
 
$
41.8


(1) 
Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
(2) 
Includes all Argo Group parent company eliminations.

CONDENSED CONSOLIDATING STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2017
(in millions)
(Unaudited)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Premiums and other revenue:
 
 
 
 
 
 
 
 
 
 
Earned premiums
 
$

 
$
135.5

 
$
263.6

 
$

 
$
399.1

Net investment (expense) income
 
(0.4
)
 
29.3

 
14.7

 

 
43.6

Fee and other income
 

 
2.9

 
0.9

 

 
3.8

Net realized investment gains (losses)
 

 
5.2

 
(0.7
)
 

 
4.5

Total revenue
 
(0.4
)
 
172.9

 
278.5

 

 
451.0

Expenses:
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 

 
72.5

 
158.1

 

 
230.6

Underwriting, acquisition and insurance
   expenses
 
3.8

 
58.5

 
92.4

 

 
154.7

Interest expense
 
1.1

 
4.2

 
1.7

 

 
7.0

Fee and other expense
 

 
3.2

 
0.1

 

 
3.3

Foreign currency exchange (gains) losses
 

 
(0.1
)
 
4.7

 

 
4.6

Total expenses
 
4.9

 
138.3

 
257.0

 

 
400.2

(Loss) income before income taxes
 
(5.3
)
 
34.6

 
21.5

 

 
50.8

Provision (benefit) for income taxes
 

 
8.1

 
(3.3
)
 

 
4.8

Net (loss) income before equity in earnings of subsidiaries
 
(5.3
)
 
26.5

 
24.8

 

 
46.0

Equity in undistributed earnings of subsidiaries
 
51.3

 

 

 
(51.3
)
 

Net income
 
$
46.0

 
$
26.5

 
$
24.8

 
$
(51.3
)
 
$
46.0


(1) 
Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
(2) 
Includes all Argo Group parent company eliminations.

CONDENSED CONSOLIDATING STATEMENT OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2018
(in millions)
(Unaudited)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Premiums and other revenue:
 

 

 

 

 

Earned premiums
 
$

 
$
423.9

 
$
408.5

 
$

 
$
832.4

Net investment (expense) income
 
(1.4
)
 
41.1

 
29.5

 

 
69.2

Fee and other income
 

 
1.5

 
2.4

 

 
3.9

Net realized investment gains (losses)
 
0.1

 
(0.9
)
 
(4.4
)
 

 
(5.2
)
Total revenue
 
(1.3
)
 
465.6

 
436.0

 

 
900.3

Expenses:
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 

 
209.8

 
272.9

 

 
482.7

Underwriting, acquisition and insurance
   expenses
 
8.2

 
165.2

 
143.6

 

 
317.0

Interest expense
 
2.9

 
8.8

 
3.8

 

 
15.5

Fee and other expense
 

 
2.5

 
1.1

 

 
3.6

Foreign currency exchange losses (gains)
 

 
0.2

 
(0.8
)
 

 
(0.6
)
Total expenses
 
11.1

 
386.5

 
420.6

 

 
818.2

(Loss) income before income taxes
 
(12.4
)
 
79.1

 
15.4

 

 
82.1

Provision for income taxes
 

 
13.2

 
2.3

 

 
15.5

Net (loss) income before equity in earnings of subsidiaries
 
(12.4
)
 
65.9

 
13.1

 

 
66.6

Equity in undistributed earnings of subsidiaries
 
79.0

 

 

 
(79.0
)
 

Net income
 
$
66.6

 
$
65.9

 
$
13.1

 
$
(79.0
)
 
$
66.6


(1) 
Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
(2) 
Includes all Argo Group parent company eliminations.

CONDENSED CONSOLIDATING STATEMENT OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2017
(in millions)
(Unaudited)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Premiums and other revenue:
 

 

 

 

 

Earned premiums
 
$

 
$
266.4

 
$
512.1

 
$

 
$
778.5

Net investment (expense) income
 
(2.1
)
 
48.2

 
28.0

 

 
74.1

Fee and other income
 

 
5.7

 
1.7

 

 
7.4

Net realized investment gains (losses)
 
0.5

 
19.0

 
(0.4
)
 

 
19.1

Total revenue
 
(1.6
)
 
339.3

 
541.4

 

 
879.1

Expenses:
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 

 
148.6

 
304.5

 

 
453.1

Underwriting, acquisition and insurance
   expenses
 
12.2

 
116.7

 
179.4

 

 
308.3

Interest expense
 
1.4

 
8.5

 
3.0

 

 
12.9

Fee and other expense
 

 
6.6

 
0.8

 

 
7.4

Foreign currency exchange losses
 

 

 
3.9

 

 
3.9

Total expenses
 
13.6

 
280.4

 
491.6

 

 
785.6

(Loss) income before income taxes
 
(15.2
)
 
58.9

 
49.8

 

 
93.5

Provision for income taxes
 

 
14.5

 
(3.7
)
 

 
10.8

Net (loss) income before equity in earnings of subsidiaries
 
(15.2
)
 
44.4

 
53.5

 

 
82.7

Equity in undistributed earnings of subsidiaries
 
97.9

 

 

 
(97.9
)
 

Net income
 
$
82.7

 
$
44.4

 
$
53.5

 
$
(97.9
)
 
$
82.7


(1) 
Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
(2) 
Includes all Argo Group parent company eliminations.


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2018
(in millions)
(Unaudited)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Net cash flows from operating activities
 
$
39.2

 
$
48.8

 
$
37.9

 
$

 
$
125.9

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
Proceeds from sales of investments
 

 
650.8

 
374.2

 

 
1,025.0

Maturities and mandatory calls of fixed
   maturity investments
 

 
226.8

 
61.9

 

 
288.7

Purchases of investments
 

 
(937.5
)
 
(436.6
)
 

 
(1,374.1
)
Change in short-term investments and
   foreign regulatory deposits
 
(0.7
)
 
(2.8
)
 
(64.1
)
 

 
(67.6
)
Settlements of foreign currency exchange
   forward contracts
 
(0.4
)
 
0.2

 
2.5

 

 
2.3

Cash included in acquisition of Ariscom
 

 

 
15.6

 

 
15.6

Purchases of fixed assets and other, net
 
(0.1
)
 
(14.8
)
 
(12.8
)
 

 
(27.7
)
Cash used in investing activities
 
(1.2
)
 
(77.3
)
 
(59.3
)
 

 
(137.8
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
Activity under stock incentive plans
 
0.2

 

 

 

 
0.2

Repurchase of Company's common shares
 
(19.4
)
 

 

 

 
(19.4
)
Payment of cash dividend to common
   shareholders
 
(18.7
)
 

 

 

 
(18.7
)
Cash used in financing activities
 
(37.9
)
 

 

 

 
(37.9
)
Effect of exchange rate changes on cash
 

 

 
(0.1
)
 

 
(0.1
)
Change in cash
 
0.1

 
(28.5
)
 
(21.5
)
 

 
(49.9
)
Cash, beginning of year
 
0.9

 
47.8

 
127.9

 

 
176.6

Cash, end of period
 
$
1.0

 
$
19.3

 
$
106.4

 
$

 
$
126.7


(1) 
Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
(2) 
Includes all Argo Group parent company eliminations.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2017
(in millions)
(Unaudited)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Net cash flows from operating activities
 
$
5.3

 
$
(8.0
)
 
$
40.0

 
$

 
$
37.3

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
Proceeds from sales of investments
 

 
514.4

 
444.0

 

 
958.4

Maturities and mandatory calls of fixed
   maturity investments
 

 
240.6

 
94.5

 

 
335.1

Purchases of investments
 

 
(811.0
)
 
(655.0
)
 

 
(1,466.0
)
Change in short-term investments and
   foreign regulatory deposits
 
0.4

 
72.0

 
228.0

 

 
300.4

Settlements of foreign currency exchange
   forward contracts
 
0.8

 

 
(0.3
)
 

 
0.5

Acquisition of Maybrooke, net of cash and
   cash equivalents acquired
 
(235.3
)
 

 
130.1

 

 
(105.2
)
Issuance of intercompany note, net
 

 

 
(120.0
)
 
120.0

 

Purchases of fixed assets and other, net
 
(0.1
)
 
(12.7
)
 
(24.9
)
 

 
(37.7
)
Cash (used in) provided by investing activities
 
(234.2
)
 
3.3

 
96.4

 
$
120.0

 
(14.5
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
Additional long-term borrowings
 
125.0

 

 

 

 
125.0

Borrowing under intercompany note, net
 
120.0

 

 

 
(120.0
)
 

Activity under stock incentive plans
 
0.5

 

 

 

 
0.5

Repurchase of Company's common shares
 

 
(2.8
)
 
0
 
0
 
(2.8
)
Payment of cash dividend to common shareholders
 
(16.6
)
 

 

 

 
(16.6
)
Cash provided by (used in) financing activities
 
228.9

 
(2.8
)
 

 
(120.0
)
 
106.1

Effect of exchange rate changes on cash
 

 

 
(0.4
)
 

 
(0.4
)
Change in cash
 

 
(7.5
)
 
136.0

 

 
128.5

Cash, beginning of year
 

 
53.7

 
32.3

 

 
86.0

Cash, end of period
 
$

 
$
46.2

 
$
168.3

 
$

 
$
214.5


(1) 
Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
(2) 
Includes all Argo Group parent company eliminations.
v3.10.0.1
Basis of Presentation (Policies)
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying consolidated financial statements of Argo Group International Holdings, Ltd. (“Argo Group,” “we” or the “Company”) and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The preparation of interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The major estimates reflected in our consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses; reinsurance recoverables, including the reinsurance recoverables allowance for doubtful accounts; estimates of written and earned premiums; reinsurance premium receivable; fair value of investments and assessment of potential impairment; valuation of goodwill and intangibles and our deferred tax asset valuation allowance. Actual results could differ from those estimates. Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission on February 27, 2018.
Effective March 5, 2018, we acquired 100% of the capital stock of Ariscom Compagnia di Assicurazioni S.p.A. (“Ariscom”) upon its release from extraordinary administration by the Italian insurance supervisory authority (“IVASS”). The acquisition is being accounted for in accordance with Accounting Standards Codification (“ASC”) 805, “Business Combinations.” See Note 3, “Acquisition of Ariscom,” for additional discussion regarding the acquisition. The Consolidated Financial Statements as of and for the three and six months ended June 30, 2018 and the Notes to the Consolidated Financial Statements reflect the consolidated results of Argo Group and Ariscom commencing on the date of acquisition.
The interim financial information as of, and for the three and six months ended June 30, 2018 and 2017 is unaudited. However, in the opinion of management, the interim information includes all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results presented for the interim periods. The operating results for the interim periods are not necessarily indicative of the results to be expected for the full year. All significant intercompany amounts have been eliminated in consolidation.
v3.10.0.1
Investments (Tables)
6 Months Ended
Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments
The amortized cost, gross unrealized gains, gross unrealized losses and fair value in fixed maturity investments were as follows:
June 30, 2018
 
 
 
 
 
 
 
 
(in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed maturities
 
 
 
 
 
 
 
 
U.S. Governments
 
$
268.0

 
$
0.2

 
$
7.0

 
$
261.2

Foreign Governments
 
248.3

 
1.7

 
5.9

 
244.1

Obligations of states and political subdivisions
 
266.6

 
5.9

 
1.8

 
270.7

Corporate bonds
 
1,655.2

 
10.7

 
30.5

 
1,635.4

Commercial mortgage-backed securities
 
145.8

 

 
2.8

 
143.0

Residential mortgage-backed securities
 
375.7

 
2.0

 
9.6

 
368.1

Asset-backed securities
 
159.4

 
0.4

 
1.3

 
158.5

Collateralized loan obligations
 
219.5

 
1.7

 
0.8

 
220.4

Total fixed maturities
 
$
3,338.5

 
$
22.6

 
$
59.7

 
$
3,301.4

December 31, 2017
 
 
 
 
 
 
 
 
(in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed maturities
 
 
 
 
 
 
 
 
U.S. Governments
 
$
419.9

 
$
0.2

 
$
5.0

 
$
415.1

Foreign Governments
 
229.0

 
6.7

 
2.5

 
233.2

Obligations of states and political subdivisions
 
327.7

 
9.3

 
1.1

 
335.9

Corporate bonds
 
1,514.5

 
24.4

 
13.2

 
1,525.7

Commercial mortgage-backed securities
 
136.3

 
0.1

 
1.5

 
134.9

Residential mortgage-backed securities
 
309.3

 
2.8

 
2.7

 
309.4

Asset-backed securities
 
161.3

 
0.7

 
0.8

 
161.2

Collateralized loan obligations
 
222.6

 
5.9

 
0.5

 
228.0

Total fixed maturities
 
$
3,320.6

 
$
50.1

 
$
27.3

 
$
3,343.4

Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity
The amortized cost and fair values of fixed maturity investments as of June 30, 2018, by contractual maturity, were as follows:
(in millions)
 
Amortized
Cost
 
Fair
Value
Due in one year or less
 
$
208.9

 
$
208.6

Due after one year through five years
 
1,482.3

 
1,465.7

Due after five years through ten years
 
597.2

 
588.0

Thereafter
 
149.7

 
149.1

Structured securities
 
900.4

 
890.0

Total
 
$
3,338.5

 
$
3,301.4

Schedule of Carrying Value And Unfunded Investment Commitments Of Other Invested Assets Portfolio
Details regarding the carrying value and unfunded investment commitments of other investments as of June 30, 2018 and December 31, 2017 were as follows:
June 30, 2018
 
 
 
 
(in millions)
 
Carrying
Value
 
Unfunded
Commitments
Investment Type
 
 
 
 
Hedge funds
 
$
140.0

 
$

Private equity
 
199.0

 
114.9

Long only funds
 
182.6

 

Other
 
4.3

 

Total other investments
 
$
525.9

 
$
114.9

December 31, 2017
 
 
 
 
(in millions)
 
Carrying
Value
 
Unfunded
Commitments
Investment Type
 
 
 
 
Hedge funds
 
$
163.6

 
$

Private equity
 
179.2

 
129.9

Long only funds
 
196.5

 

Other
 
4.3

 

Total other investments
 
$
543.6

 
$
129.9

Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments
An aging of unrealized losses on our investments in fixed maturities is presented below:
June 30, 2018
 
Less Than One Year
 
One Year or Greater
 
Total
(in millions)
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed maturities
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Governments
 
$
223.4

 
$
6.1

 
$
17.2

 
$
0.9

 
$
240.6

 
$
7.0

Foreign Governments (1)
 
212.9

 
5.9

 
5.0

 

 
217.9

 
5.9

Obligations of states and political subdivisions
 
67.5

 
1.1

 
14.6

 
0.7

 
82.1

 
1.8

Corporate bonds
 
1,195.0

 
28.7

 
28.9

 
1.8

 
1,223.9

 
30.5

Commercial mortgage-backed securities
 
105.2

 
1.9

 
15.8

 
0.9

 
121.0

 
2.8

Residential mortgage-backed securities
 
288.2

 
8.9

 
14.0

 
0.7

 
302.2

 
9.6

Asset-backed securities
 
107.1

 
1.0

 
7.0

 
0.3

 
114.1

 
1.3

Collateralized loan obligations
 
129.8

 
0.8

 

 

 
129.8

 
0.8

Total fixed maturities
 
$
2,329.1

 
$
54.4

 
$
102.5

 
$
5.3

 
$
2,431.6

 
$
59.7

December 31, 2017
 
Less Than One Year
 
One Year or Greater
 
Total
(in millions)
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed maturities
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Governments
 
$
313.7

 
$
1.9

 
$
83.7

 
$
3.1

 
$
397.4

 
$
5.0

Foreign Governments
 
175.2

 
2.0

 
35.9

 
0.5

 
211.1

 
2.5

Obligations of states and political subdivisions
 
33.3

 
0.5

 
22.4

 
0.6

 
55.7

 
1.1

Corporate bonds
 
674.1

 
9.9

 
77.7

 
3.3

 
751.8

 
13.2

Commercial mortgage-backed securities
 
58.2

 
0.4

 
37.8

 
1.1

 
96.0

 
1.5

Residential mortgage-backed securities
 
164.4

 
1.6

 
52.4

 
1.1

 
216.8

 
2.7

Asset-backed securities
 
85.4

 
0.4

 
31.9

 
0.4

 
117.3

 
0.8

Collateralized loan obligations (1)
 
34.6

 
0.5

 
0.9

 

 
35.5

 
0.5

Total fixed maturities
 
$
1,538.9

 
$
17.2

 
$
342.7

 
$
10.1

 
$
1,881.6

 
$
27.3

(1) 
Unrealized losses one year or greater are less than $0.1 million.
Schedule of Recognized Other-than-temporary Losses on Fixed Maturities and Equity Portfolios
We recognized other-than-temporary losses on our fixed maturities and equity portfolio as follows:
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Other-than-temporary impairment:
 
 
 
 
 
 
 
 
Corporate bonds
 
$
(0.9
)
 
$

 
(1.9
)
 

Equity securities
 

 
(1.1
)
 

 
(1.5
)
Other-than-temporary impairment losses
 
$
(0.9
)
 
$
(1.1
)
 
$
(1.9
)
 
$
(1.5
)
Schedule of Company's Gross Realized Investment Gains (Losses)
The following table presents our gross realized investment gains (losses):
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Realized gains on fixed maturities and other
 
 
 
 
 
 
 
 
Fixed maturities
 
$
3.7

 
$
5.5

 
$
11.2

 
$
12.6

Equity securities (1)
 

 
12.0

 

 
27.7

Other and short-term investments
 
15.6

 
5.1

 
27.3

 
11.3

 
 
19.3

 
22.6

 
38.5

 
51.6

Realized losses on fixed maturities and other
 
 
 
 
 
 
 
 
Fixed maturities
 
(6.5
)
 
(5.0
)
 
(11.4
)
 
(11.2
)
Equity securities (1)
 

 
(1.8
)
 

 
(2.5
)
Other and Short-term investments
 
(16.3
)
 
(10.2
)
 
(25.6
)
 
(17.3
)
Other-than-temporary impairment losses on fixed maturities
 
(0.9
)
 

 
(1.9
)
 

Other-than-temporary impairment losses on equity securities
 

 
(1.1
)
 

 
(1.5
)
 
 
(23.7
)
 
(18.1
)
 
(38.9
)
 
(32.5
)
Equity securities (1)
 
 
 
 
 
 
 
 
Net realized gains on equity securities sold during the period
 
10.6

 

 
21.8

 

Change in unrealized gains (losses) on equity securities held at the end of the period
 
4.3

 

 
(26.6
)
 

Net realized gains (losses) on equity securities
 
14.9

 

 
(4.8
)
 

Net realized investment gains (losses) before income taxes
 
10.5

 
4.5

 
(5.2
)
 
19.1

Income tax (expense) benefit
 
(2.4
)
 
(1.3
)
 
0.5

 
(5.7
)
Net realized investment gains (losses), net of income taxes
 
$
8.1

 
$
3.2

 
$
(4.7
)
 
$
13.4

(1)
Effective January 1, 2018, we adopted ASU 2016-1. As a result, unrealized gains (losses) at the date of adoption have been reclassified from accumulated other comprehensive income to retained earnings. Additionally, all changes in the fair value of equity securities are recognized in net realized investment gains (losses). Prior periods have not been restated to conform to the current presentation. See Note 2, "Recently Issued Accounting Pronouncements."
Schedule of Changes in Unrealized Appreciation (Depreciation)
Changes in unrealized appreciation (depreciation) related to investments are summarized as follows:
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Change in unrealized (losses) gains
 
 
 
 
 
 
 
 
Fixed maturities
 
$
(21.8
)
 
$
19.5

 
(58.9
)
 
32

Equity securities
 

 
3.3

 

 
8.7

Other investments
 
0.1

 
2.0

 
0.1

 
2

Short-term investments
 
0.1

 

 

 

Net unrealized investment (losses) gains before income taxes
 
(21.6
)
 
24.8

 
(58.8
)
 
42.7

Income tax benefit (expense)
 
2.8

 
(5.1
)
 
9.1

 
(9.7
)
Net unrealized investment (losses) gains, net of income taxes
 
$
(18.8
)
 
$
19.7

 
$
(49.7
)
 
$
33.0

Schedule of Fair Value of Foreign Currency Exchange Forward Contracts
The fair value of our foreign currency exchange forward contracts as of June 30, 2018 and December 31, 2017 was as follows:
(in millions)
 
June 30, 2018
 
December 31, 2017
Operational currency exposure
 
$
(2.2
)
 
$
(0.2
)
Asset manager investment exposure
 
0.2

 
(0.9
)
Total return strategy
 
(0.3
)
 
0.7

Total
 
$
(2.3
)
 
$
(0.4
)
Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts
The following table represents our gross investment realized gains and losses on our foreign currency exchange forward contracts:
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Realized gains
 
 
 
 
 
 
 
 
Operational currency exposure
 
$
1.7

 
$
3.7

 
$
6.0

 
$
5.7

Asset manager investment exposure
 
8.7

 

 
13.0

 
0.5

Total return strategy
 
4.3

 
0.5

 
6.9

 
3.6

Gross realized investment gains
 
14.7

 
4.2

 
25.9

 
9.8

Realized losses
 
 
 
 
 
 
 
 
Operational currency exposure
 
(3.7
)
 
(3.7
)
 
(4.3
)
 
(5.9
)
Asset manager investment exposure
 
(5.7
)
 
(5.4
)
 
(11.6
)
 
(6.8
)
Total return strategy
 
(6.0
)
 
(0.8
)
 
(8.1
)
 
(2.7
)
Gross realized investment losses
 
(15.4
)
 
(9.9
)
 
(24.0
)
 
(15.4
)
Net realized investment (losses) gains on foreign currency exchange forward contracts
 
$
(0.7
)
 
$
(5.7
)
 
$
1.9

 
$
(5.6
)
Schedule of Restricted Assets
The following table presents our components of restricted assets at June 30:
(in millions)
 
June 30, 2018
 
June 30, 2017
Securities on deposit for regulatory and other purposes
 
$
167.0

 
$
176.0

Securities pledged as collateral for letters of credit
 
78.1

 
29.1

Securities and cash on deposit supporting Lloyd’s business
 
373.9

 
397.2

Total restricted investments
 
$
619.0

 
$
602.3

Financial Assets Measured at Fair Value on Recurring Basis
Based on an analysis of the inputs, our financial assets measured at fair value on a recurring basis have been categorized as follows:
 
 
 
 
Fair Value Measurements at Reporting Date Using
(in millions)
 
June 30, 2018
 
Level 1 (a)
 
Level 2 (b)
 
Level 3 (c)
Fixed maturities
 
 
 
 
 
 
 
 
U.S. Governments
 
$
261.2

 
$
252.2

 
$
9.0

 
$

Foreign Governments
 
244.1

 

 
244.1

 

Obligations of states and political subdivisions
 
270.7

 

 
270.7

 

Corporate bonds
 
1,635.4

 

 
1,631.8

 
3.6

Commercial mortgage-backed securities
 
143.0

 

 
143.0

 

Residential mortgage-backed securities
 
368.1

 

 
368.1

 

Asset-backed securities
 
158.5

 

 
158.5

 

Collateralized loan obligations
 
220.4

 

 
220.4

 

Total fixed maturities
 
3,301.4

 
252.2

 
3,045.6

 
3.6

Equity securities
 
492.2

 
484.1

 
2.1

 
6.0

Other investments
 
95.4

 

 
95.4

 

Short-term investments
 
449.4

 
391.8

 
57.6

 

 
 
$
4,338.4

 
$
1,128.1

 
$
3,200.7

 
$
9.6

(a) 
Quoted prices in active markets for identical assets
(b) 
Significant other observable inputs
(c) 
Significant unobservable inputs
 
 
 
 
Fair Value Measurements at Reporting Date Using
(in millions)
 
December 31, 2017
 
Level 1 (a)
 
Level 2 (b)
 
Level 3 (c)
Fixed maturities
 
 
 
 
 
 
 
 
U.S. Governments
 
$
415.1

 
$
410.6

 
$
4.5

 
$

Foreign Governments
 
233.2

 

 
233.2

 

Obligations of states and political subdivisions
 
335.9

 

 
335.9

 

Corporate bonds
 
1,525.7

 

 
1,523.8

 
1.9

Commercial mortgage-backed securities
 
134.9

 

 
134.9

 

Residential mortgage-backed securities
 
309.4

 

 
309.4

 

Asset-backed securities
 
161.2

 

 
161.2

 

Collateralized loan obligations
 
228.0

 

 
228.0

 

Total fixed maturities
 
3,343.4

 
410.6

 
2,930.9

 
1.9

Equity securities
 
487.4

 
483.0

 
2.1

 
2.3

Other investments
 
108.8

 

 
108.8

 

Short-term investments
 
368.5

 
333.7

 
34.8

 

 
 
$
4,308.1

 
$
1,227.3

 
$
3,076.6

 
$
4.2

(a) 
Quoted prices in active markets for identical assets
(b) 
Significant other observable inputs
(c) 
Significant unobservable inputs
Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3
A reconciliation of the beginning and ending balances for the investments categorized as Level 3 are as follows:
Fair Value Measurements Using Observable Inputs (Level 3)
(in millions)
 
Credit Financial
 
Equity
Securities
 
Total
Beginning balance, January 1, 2018
 
$
1.9

 
$
2.3

 
$
4.2

Transfers into Level 3
 

 

 

Transfers out of Level 3
 

 

 

Total gains or losses (realized/unrealized):
 
 
 
 
 
 
Included in net income (loss)
 

 

 

Included in other comprehensive income (loss)
 

 

 

Purchases, issuances, sales, and settlements:
 
 
 
 
 
 
Purchases
 
1.7

 
4.1

 
5.8

Issuances
 

 

 

Sales
 

 
(0.4
)
 
(0.4
)
Settlements
 

 

 

 Ending balance, June 30, 2018
 
$
3.6

 
$
6.0

 
$
9.6

Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2018
 
$

 
$

 
$

(in millions)
 
Credit Financial
 
Equity
Securities
 
Total
Beginning balance, January 1, 2017
 
$
2.0

 
$
0.4

 
$
2.4

Transfers into Level 3
 

 

 

Transfers out of Level 3
 

 

 

Total gains or losses (realized/unrealized):
 
 
 
 
 


Included in net income (loss)
 

 

 

Included in other comprehensive income (loss)
 
(0.1
)
 
0.2

 
0.1

Purchases, issuances, sales, and settlements:
 
 
 
 
 


Purchases
 

 
1.7

 
1.7

Issuances
 

 

 

Sales
 

 

 

Settlements
 

 

 

 Ending balance, December 31, 2017
 
$
1.9

 
$
2.3

 
$
4.2

Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2017
 
$

 
$

 
$

v3.10.0.1
Reserves for Losses and Loss Adjustment Expenses (Tables)
6 Months Ended
Jun. 30, 2018
Insurance [Abstract]  
Reserves for Losses and Loss Adjustment Expenses
The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”):
 
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
Net reserves beginning of the year
 
$
2,488.0

 
$
2,180.2

Net Maybrooke reserves acquired
 

 
132.6

Net Ariscom reserves acquired
 
49.4

 

Add:
 
 
 
 
Losses and LAE incurred during current calendar year, net of reinsurance:
 
 
 
 
Current accident year
 
487.1

 
447.4

Prior accident years
 
(4.4
)
 
5.7

Losses and LAE incurred during calendar year, net of reinsurance
 
482.7

 
453.1

Deduct:
 
 
 
 
Losses and LAE payments made during current calendar year, net of reinsurance:
 
 
 
 
Current accident year
 
152.1

 
88.9

Prior accident years
 
327.0

 
290.8

Losses and LAE payments made during current calendar year, net of reinsurance:
 
479.1

 
379.7

Change in participation interest (1)
 
(29.4
)
 
(23.2
)
Foreign exchange adjustments
 
(24.0
)
 
1.8

Net reserves - end of period
 
2,487.6

 
2,364.8

Add:
 
 
 
 
Reinsurance recoverables on unpaid losses and LAE, end of period
 
1,755.3

 
1,268.0

Gross reserves - end of period
 
$
4,242.9

 
$
3,632.8

(1) 
Amount represents the change in reserves due to changing our participation in Syndicates 1200 and 1910.
Impact from (Favorable) Unfavorable Development of Prior Accident Years’ Loss and LAE Reserves on Each Reporting Segment
The impact from the (favorable) unfavorable development of prior accident years’ loss and LAE reserves on each reporting segment is presented below: 
 
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
U.S. Operations
 
$
(4.1
)
 
$
(18.0
)
International Operations
 
(3.3
)
 
19.6

Run-off Lines
 
3.0

 
4.1

Total (favorable) unfavorable prior-year development
 
$
(4.4
)
 
$
5.7

v3.10.0.1
Disclosures about Fair Value of Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value
A summary of our financial instruments whose carrying value did not equal fair value is shown below:
 
 
June 30, 2018
 
December 31, 2017
(in millions)
 
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
Junior subordinated debentures
 

 

 
 
 
 
Trust preferred debentures
 
$
172.7

 
$
172.9

 
$
172.7

 
$
172.9

Subordinated debentures acquired with Maybrooke
 
84.1

 
83.3

 
83.9

 
85.0

Senior unsecured fixed rate notes
 
139.7

 
141.1

 
139.6

 
141.2

Floating rate loan stock
 
59.0

 
59.0

 
58.9

 
59.0

v3.10.0.1
Shareholders' Equity (Tables)
6 Months Ended
Jun. 30, 2018
Equity [Abstract]  
Schedule of Repurchase of Shares
A summary of common shares repurchased for the six months ended June 30, 2018 is shown below:
 
Repurchase Type
 
Date
Trading Plan
Initiated
 
2018 Purchase Period
 
Number of
Shares
Repurchased
 
Average Price
of Shares
Repurchased
 
Total Cost
(in millions)
 
Repurchase
Authorization
Year
10b5-1 Trading Plan
 
12/15/2017
 
01/02/2018-02/16/2018
 
225,281

 
$
59.31

 
$
13.3

 
2016
10b5-1 Trading Plan
 
6/15/2018
 
06/22/2018-06/29/2018
 
29,947

 
$
58.86

 
1.8

 
2016
Open Market
 
N/A
 
02/20/2018-03/02/2018
 
89,305

 
$
59.03

 
5.3

 
2016
Total
 

 

 
344,533

 
$
59.20

 
$
20.4

 
 
v3.10.0.1
Accumulated Other Comprehensive (Loss) Income (Tables)
6 Months Ended
Jun. 30, 2018
Equity [Abstract]  
Changes in Accumulated Other Comprehensive (Loss) Income
A summary of changes in accumulated other comprehensive (loss) income, net of taxes (where applicable) by component for the six months ended June 30, 2018, and 2017 is presented below:
(in millions)
 
Foreign Currency Translation Adjustments
 
Unrealized
Holding Gains
on Securities
 
Defined Benefit Pension Plans
 
Total
Balance, January 1, 2018
 
$
(19.0
)
 
$
121.9

 
$
(6.3
)
 
$
96.6

Cumulative effect of adoption of ASU 2016-01
 

 
(117.5
)
 

 
(117.5
)
Cumulative effect of adoption of ASU 2018-02
 

 
22.1

 
(1.4
)
 
20.7

Other comprehensive income (loss) before reclassifications
 
(4.0
)
 
(52.1
)
 

 
(56.1
)
Amounts reclassified from accumulated other comprehensive income (loss)
 

 
2.4

 

 
2.4

Net current-period other comprehensive income (loss)
 
(4.0
)
 
(145.1
)
 
(1.4
)
 
(150.5
)
Balance at June 30, 2018
 
$
(23.0
)
 
$
(23.2
)
 
$
(7.7
)
 
$
(53.9
)
 
(in millions)
 
Foreign Currency Translation Adjustments
 
Unrealized
Holding Gains
on Securities
 
Defined Benefit Pension Plans
 
Total
Balance, January 1, 2017
 
$
(17.6
)
 
$
72.4

 
$
(7.1
)
 
$
47.7

Other comprehensive income (loss) before reclassifications
 
(0.6
)
 
45.7

 

 
45.1

Amounts reclassified from accumulated other comprehensive income (loss)
 

 
(12.7
)
 

 
(12.7
)
Net current-period other comprehensive income (loss)
 
(0.6
)
 
33.0

 

 
32.4

Balance at June 30, 2017
 
$
(18.2
)
 
$
105.4

 
$
(7.1
)
 
$
80.1

Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income
The amounts reclassified from accumulated other comprehensive income (loss) shown in the above table have been included in the following captions in our Consolidated Statements of Income:
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Unrealized gains and losses on securities:
 
 
 
 
 
 
 
 
Net realized investment gains (losses)
 
$
15.1

 
$
(2.7
)
 
$
2.6

 
$
(18.9
)
Provision for income taxes
 
(2.5
)
 
1.0

 
(0.2
)
 
6.2

Net of taxes
 
$
12.6

 
$
(1.7
)
 
$
2.4

 
$
(12.7
)
v3.10.0.1
Net Income Per Common Share (Tables)
6 Months Ended
Jun. 30, 2018
Earnings Per Share [Abstract]  
Net Income Per Common Share on Basic and Diluted Basis
The following table presents the calculation of net income per common share on a basic and diluted basis:
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions, except number of shares and per share amounts)
 
2018
 
2017
 
2018
 
2017
Net income
 
$
41.8

 
$
46.0

 
$
66.6

 
$
82.7

Weighted average common shares outstanding - basic
 
33,938,509

 
34,731,866

 
33,903,809

 
34,643,594

Effect of dilutive securities:
 
 
 
 
 
 
 
 
Equity compensation awards
 
730,409

 
973,618

 
801,002

 
1,001,046

Weighted average common shares outstanding - diluted
 
34,668,918

 
35,705,484

 
34,704,811

 
35,644,640

Net income per common share:
 
 
 
 
 
 
 
 
Basic
 
$
1.23

 
$
1.32

 
$
1.96

 
$
2.39

Diluted
 
$
1.20

 
$
1.29

 
$
1.92

 
$
2.32

v3.10.0.1
Supplemental Cash Flow Information (Tables)
6 Months Ended
Jun. 30, 2018
Supplemental Cash Flow Elements [Abstract]  
Schedule of Interest Paid and Income Taxes Paid (Recovered)
Interest paid and income taxes paid (recovered) were as follows:  
 
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
Senior unsecured fixed rate notes
 
$
4.7

 
$
4.7

Junior subordinated debentures
 
7.1

 
6.0

Other indebtedness
 
3.3

 
1.6

Revolving credit facility
 
0.3

 
0.3

Total interest paid
 
$
15.4

 
$
12.6

 
 
 
 
 
Income taxes paid
 
8.2

 
9.9

Income taxes recovered
 

 
(2.2
)
Income taxes paid, net
 
$
8.2

 
$
7.7

v3.10.0.1
Share-based Compensation (Tables)
6 Months Ended
Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Fair Value Assumptions
The following table summarizes the assumptions we used for the six months ended June 30, 2018 and 2017:
 
 
For the Six Months Ended June 30,
 
 
2018
 
2017
Risk-free rate of return
 
2.73%
 
1.83%
Expected dividend yields
 
1.87%
 
1.68%
Expected award life (years)
 
4.49
 
4.48
Expected volatility
 
18.13%
 
18.64%
Summary of Restricted Share Activity
A summary of restricted share activity as of June 30, 2018 and changes during the six months ended is as follows:
 
 
 
Shares
 
Weighted-Average
Grant Date
Fair Value
Outstanding at January 1, 2018
 
767,140

 
$
42.91

Granted
 
319,134

 
$
47.57

Vested and issued
 
(199,193
)
 
$
42.99

Expired or forfeited
 
(85,003
)
 
$
44.74

Outstanding at June 30, 2018
 
802,078

 
$
44.55

Summary of Stock-Settled SARs Activity
A summary of stock-settled SARs activity as of June 30, 2018 and changes during the six months ended is as follows:
 
 
 
Shares
 
Weighted-Average
Exercise Price
Outstanding at January 1, 2018
 
1,494,458

 
$
30.85

Exercised
 
(464,807
)
 
$
27.07

Expired or forfeited
 
(14,947
)
 
$
36.25

Outstanding at June 30, 2018
 
1,014,704

 
$
32.50

Summary of Cash-Settled SARs Activity
A summary of cash-settled SARs activity as of June 30, 2018 and changes during the six months ended is as follows:
 
 
 
Shares
 
Weighted-Average
Exercise Price
Outstanding at January 1, 2018
 
189,568

 
$
28.95

Exercised
 
(68,955
)
 
$
28.56

Expired or forfeited
 
(2,568
)
 
$
21.23

Outstanding at June 30, 2018
 
118,045

 
$
29.35

v3.10.0.1
Underwriting, Acquisition and Insurance Expenses (Tables)
6 Months Ended
Jun. 30, 2018
Underwriting Acquisition And Insurance Expenses [Abstract]  
Underwriting, Acquisition and Insurance Expenses
The components of our underwriting, acquisition and insurance expenses are detailed in the table below. General expenses includes certain costs associated with our holding company.
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Commissions
 
$
56.7

 
$
69.2

 
$
124.7

 
$
130.4

General expenses
 
90.6

 
88.0

 
178.4

 
176.7

Premium taxes, boards and bureaus
 
8.1

 
6.7

 
17.4

 
14.1

 
 
155.4

 
163.9

 
320.5

 
321.2

Net amortization (deferral) of policy acquisition costs
 
1.4

 
(9.2
)
 
(3.5
)
 
(12.9
)
Total underwriting, acquisition and insurance expenses
 
$
156.8

 
$
154.7

 
$
317.0

 
$
308.3

v3.10.0.1
Income Taxes (Tables)
6 Months Ended
Jun. 30, 2018
Income Tax Disclosure [Abstract]  
Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates
Our expected income tax provision computed on pre-tax income (loss) at the weighted average tax rate has been calculated as the sum of the pre-tax income (loss) in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. For the three and six months ended June 30, 2018 and 2017, pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows:
 
 
 
For the Three Months Ended June 30,
(in millions)
 
2018
 
2017
 
 
Pre-Tax
Income (Loss)
 
Effective
Tax
Rate
 
Pre-Tax
Income (Loss)
 
Effective
Tax
Rate
Bermuda
 
$
(33.6
)
 
 %
 
$
25.3

 
%
United States
 
85.7

 
17.1
 %
 
34.7

 
23.3
%
United Kingdom
 
6.6

 
10.1
 %
 
(6.5
)
 
52.8
%
Belgium
 
(0.1
)
 
36.4
 %
 
0.1

 
36.6
%
Brazil
 
0.1

 
 %
 
0.6

 
%
United Arab Emirates
 
0.2

 
 %
 
(2.2
)
 
%
Ireland
 
(0.1
)
 
 %
 

(1) 
%
Italy
 
(1.1
)
 
 %
 

 
%
Malta
 
(0.6
)
 
(0.2
)%
 
0.5

 
%
Luxembourg
 

(1) 
 %
 
(1.7
)
 
%
Switzerland
 

(1) 
20.8
 %
 

(1) 
22.1
%
Pre-tax income
 
$
57.1

 
26.9
 %
 
$
50.8

 
9.4
%

 
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
 
Pre-Tax
Income (Loss)
 
Effective
Tax
Rate
 
Pre-Tax
Income (Loss)
 
Effective
Tax
Rate
Bermuda
 
$
(8.4
)
 
%
 
$
51.7

 
%
United States
 
79.5

 
16.6
%
 
58.7

 
24.8
%
United Kingdom
 
12.7

 
17.1
%
 
(12.0
)
 
32.3
%
Belgium
 

(1) 
%
 
0.1

 
36.2
%
Brazil
 
(1.3
)
 
%
 
(0.2
)
 
%
United Arab Emirates
 
0.4

 
%
 
(3.5
)
 
%
Ireland
 
(0.1
)
 
%
 

(1) 
%
Italy
 
(1.1
)
 
%
 

 
%
Malta
 
0.4

 
0.2
%
 
1.1

 
%
Luxembourg
 

(1) 
%
 
(2.4
)
 
%
Switzerland
 

(1) 
20.8
%
 

(1) 
20.8
%
Pre-tax income
 
$
82.1

 
18.9
%
 
$
93.5

 
11.5
%
(1) 
Pre-tax income for the respective year was less than $0.1 million.
Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate
A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows:
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Income tax (benefit) provision at expected rate
 
$
18.8

 
$
10.8

 
$
18.4

 
$
18.0

Tax effect of:
 
 
 
 
 
 
 
 
Nontaxable investment income
 
(0.5
)
 
(1.1
)
 
(1.0
)
 
(2.4
)
Foreign exchange adjustments
 

 
(0.9
)
 
(0.2
)
 
(0.3
)
Withholding taxes
 
0.2

 
0.2

 
0.3

 
0.3

Change in valuation allowance
 
(0.7
)
 
(1.0
)
 
(3.4
)
 
(1.1
)
Other
 
(2.5
)
 
(3.2
)
 
1.4

 
(3.7
)
Income tax provision
 
$
15.3

 
$
4.8

 
$
15.5

 
$
10.8

v3.10.0.1
Segment Information (Tables)
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Revenue and Income (Loss) Before Income Taxes for Each Segment
Revenue and income (loss) before income taxes for each segment were as follows:
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Revenue:
 
 
 
 
 
 
 
 
Earned premiums
 
 
 
 
 
 
 
 
U.S. Operations
 
$
267.0

 
$
229.1

 
$
529.3

 
$
450.3

International Operations
 
150.5

 
169.9

 
302.9

 
328.1

Run-off Lines
 
0.2

 
0.1

 
0.2

 
0.1

Total earned premiums
 
417.7

 
399.1

 
832.4

 
778.5

Net investment income
 
 
 
 
 
 
 
 
U.S. Operations
 
20.7

 
27.3

 
43.3

 
47.2

International Operations
 
8.4

 
10.1

 
17.2

 
16.7

Run-off Lines
 
2.0

 
2.9

 
4.2

 
5.0

Corporate and Other
 
2.1

 
3.3

 
4.5

 
5.2

Total net investment income
 
33.2

 
43.6

 
69.2

 
74.1

Fee and other income
 
1.9

 
3.8

 
3.9

 
7.4

Net realized investment gains (losses)
 
10.5

 
4.5

 
(5.2
)
 
19.1

Total revenue
 
$
463.3

 
$
451.0

 
$
900.3

 
$
879.1

 
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Income (loss) before income taxes
 
 
 
 
 
 
 
 
U.S. Operations
 
$
42.5

 
$
53.0

 
$
76.5

 
$
90.2

International Operations
 
13.2

 
9.1

 
36.1

 
17.4

Run-off Lines
 
(0.3
)
 
(1.2
)
 
(1.0
)
 
(3.7
)
Total segment income before taxes
 
55.4

 
60.9

 
111.6

 
103.9

Corporate and Other
 
(8.8
)
 
(14.6
)
 
(24.3
)
 
(29.5
)
Net realized investment gains (losses)
 
10.5

 
4.5

 
(5.2
)
 
19.1

Total income before income taxes
 
$
57.1

 
$
50.8

 
$
82.1

 
$
93.5

Schedule of Earned Premiums by Geographic Location
The table below presents earned premiums by geographic location for the three and six months ended June 30, 2018 and 2017. For this disclosure, we determine geographic location by the country of domicile of our subsidiaries that underwrite the business and not by the location of insureds or reinsureds from whom the business was generated.
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(in millions)
 
2018
 
2017
 
2018
 
2017
Bermuda
 
$
20.9

 
$
23.1

 
$
41.4

 
$
48.7

Brazil
 
10.5

 
12.3

 
23.5

 
25.1

Italy
 
2.8

 

 
2.8

 

Malta
 
15.7

 
1.3

 
21.4

 
2.3

United Kingdom
 
102.0

 
133.3

 
216.1

 
252.1

United States
 
265.8

 
229.1

 
527.2

 
450.3

Total earned premiums
 
$
417.7

 
$
399.1

 
$
832.4

 
$
778.5

Identifiable Assets
The following table represents identifiable assets:
(in millions)
 
June 30, 2018
 
December 31, 2017
U.S. Operations
 
$
4,490.6

 
$
4,298.4

International Operations
 
3,762.7

 
3,553.8

Run-off Lines
 
453.8

 
449.6

Corporate and Other
 
398.6

 
462.2

Total
 
$
9,105.7

 
$
8,764.0

v3.10.0.1
Senior Unsecured Fixed Rate Notes (Tables)
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Schedule Of Unamortized Debt Issuance Costs Deducted From Carrying Value Of Debt Liability
At June 30, 2018 and December 31, 2017, the Notes consisted of the following:
(in millions)
 
June 30, 2018
 
December 31, 2017
Senior unsecured fixed rate notes
 
 
 
 
Principal
 
$
143.8

 
$
143.8

Less: unamortized debt issuance costs
 
(4.1
)
 
(4.2
)
Senior unsecured fixed rate notes, less unamortized debt issuance costs
 
$
139.7

 
$
139.6

Condensed Consolidating Balance Sheet
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2018
(in millions)
(Unaudited)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Assets
 
 
 
 
 
 
 
 
 
 
Investments
 
$
1.2

 
$
3,107.6

 
$
1,660.1

 
$

 
$
4,768.9

Cash
 
1.0

 
19.3

 
106.4

 

 
126.7

Accrued investment income
 

 
18.6

 
6.3

 

 
24.9

Premiums receivable
 

 
221.8

 
476.3

 

 
698.1

Reinsurance recoverables
 

 
1,548.5

 
583.1

 

 
2,131.6

Goodwill and other intangible assets, net
 
42.6

 
124.6

 
106.1

 

 
273.3

Deferred acquisition costs, net
 

 
82.9

 
78.2

 

 
161.1

Ceded unearned premiums
 

 
221.9

 
271.5

 

 
493.4

Other assets
 
9.6

 
178.4

 
239.7

 

 
427.7

Intercompany note receivable
 

 
52.2

 
(52.2
)
 

 

Investments in subsidiaries
 
1,968.3

 

 

 
(1,968.3
)
 

Total assets
 
$
2,022.7

 
$
5,575.8

 
$
3,475.5

 
$
(1,968.3
)
 
$
9,105.7

Liabilities and Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
Reserves for losses and loss adjustment expenses
 
$

 
$
2,575.3

 
$
1,667.6

 
$

 
$
4,242.9

Unearned premiums
 

 
721.8

 
561.8

 

 
1,283.6

Funds held and ceded reinsurance payable, net
 

 
754.2

 
102.6

 

 
856.8

Debt
 
153.4

 
284.7

 
143.0

 

 
581.1

Current income taxes payable, net
 

 
14.4

 
(0.9
)
 

 
13.5

Deferred tax liabilities, net
 

 
15.4

 
(0.3
)
 

 
15.1

Accrued underwriting expenses and other liabilities
 
11.2

 
94.6

 
209.8

 

 
315.6

Due to (from) affiliates
 
61.0

 
1.0

 
(1.0
)
 
(61.0
)
 

Total liabilities
 
225.6

 
4,461.4

 
2,682.6

 
(61.0
)
 
7,308.6

Total shareholders' equity
 
1,797.1

 
1,114.4

 
792.9

 
(1,907.3
)
 
1,797.1

Total liabilities and shareholders' equity
 
$
2,022.7

 
$
5,575.8

 
$
3,475.5

 
$
(1,968.3
)
 
$
9,105.7

 
(1) 
Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
(2) 
Includes all Argo Group parent company eliminations.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2017
(in millions)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Assets
 
 
 
 
 
 
 
 
 
 
Investments
 
$
0.4

 
$
3,079.0

 
$
1,663.5

 
$

 
$
4,742.9

Cash
 
0.9

 
47.8

 
127.9

 

 
176.6

Accrued investment income
 

 
18.0

 
5.5

 

 
23.5

Premiums receivable
 

 
216.5

 
382.1

 

 
598.6

Reinsurance recoverables
 

 
1,487.3

 
606.0

 

 
2,093.3

Goodwill and other intangible assets, net
 
43.2

 
124.9

 
90.1

 

 
258.2

Current income taxes receivable, net
 

 
2.4

 
(1.0
)
 

 
1.4

Deferred acquisition costs, net
 

 
80.7

 
79.7

 

 
160.4

Ceded unearned premiums
 

 
198.5

 
201.0

 

 
399.5

Other assets
 
9.2

 
171.5

 
128.9

 

 
309.6

Intercompany note receivable
 

 
50.9

 
(50.9
)
 

 

Investments in subsidiaries
 
1,940.0

 

 

 
(1,940.0
)
 

Total assets
 
$
1,993.7

 
$
5,477.5

 
$
3,232.8

 
$
(1,940.0
)
 
$
8,764.0

Liabilities and Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
Reserves for losses and loss adjustment expenses
 
$

 
$
2,483.9

 
$
1,717.1

 
$

 
$
4,201.0

Unearned premiums
 

 
704.0

 
503.7

 

 
1,207.7

Funds held and ceded reinsurance payable, net
 

 
799.4

 
(22.7
)
 

 
776.7

Long-term debt
 
153.4

 
284.5

 
142.8

 

 
580.7

Deferred tax liabilities, net
 

 
32.5

 
(1.2
)
 

 
31.3

Accrued underwriting expenses and other liabilities
 
8.9

 
95.0

 
43.0

 

 
146.9

Due to (from) affiliates
 
11.7

 
(0.4
)
 
0.4

 
(11.7
)
 

Total liabilities
 
174.0

 
4,398.9

 
2,383.1

 
(11.7
)
 
6,944.3

Total shareholders' equity
 
1,819.7

 
1,078.6

 
849.7

 
(1,928.3
)
 
1,819.7

Total liabilities and shareholders' equity
 
$
1,993.7

 
$
5,477.5

 
$
3,232.8

 
$
(1,940.0
)
 
$
8,764.0

 
(1) 
Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
(2) 
Includes all Argo Group parent company eliminations.

Condensed Consolidating Statement of Income
CONDENSED CONSOLIDATING STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2018
(in millions)
(Unaudited)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Premiums and other revenue:
 
 
 
 
 
 
 
 
 
 
Earned premiums
 
$

 
$
267.0

 
$
150.7

 
$

 
$
417.7

Net investment (expense) income
 
(0.7
)
 
19.0

 
14.9

 

 
33.2

Fee and other income
 

 
0.7

 
1.2

 

 
1.9

Net realized investment gains (losses)
 
0.5

 
14.5

 
(4.5
)
 

 
10.5

Total revenue
 
(0.2
)
 
301.2

 
162.3

 

 
463.3

Expenses:
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 

 
114.4

 
131.1

 

 
245.5

Underwriting, acquisition and insurance
   expenses
 
5.8

 
95.5

 
55.5

 

 
156.8

Interest expense
 
1.6

 
4.5

 
1.7

 

 
7.8

Fee and other expense
 

 
1.1

 
0.5

 

 
1.6

Foreign currency exchange losses (gains)
 

 
0.1

 
(5.6
)
 

 
(5.5
)
Total expenses
 
7.4

 
215.6

 
183.2

 

 
406.2

(Loss) income before income taxes
 
(7.6
)
 
85.6

 
(20.9
)
 

 
57.1

Provision for income taxes
 

 
14.6

 
0.7

 

 
15.3

Net (loss) income before equity in earnings of subsidiaries
 
(7.6
)
 
71.0

 
(21.6
)
 

 
41.8

Equity in undistributed earnings of subsidiaries
 
49.4

 

 

 
(49.4
)
 

Net income
 
$
41.8

 
$
71.0

 
$
(21.6
)
 
$
(49.4
)
 
$
41.8


(1) 
Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
(2) 
Includes all Argo Group parent company eliminations.

CONDENSED CONSOLIDATING STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2017
(in millions)
(Unaudited)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Premiums and other revenue:
 
 
 
 
 
 
 
 
 
 
Earned premiums
 
$

 
$
135.5

 
$
263.6

 
$

 
$
399.1

Net investment (expense) income
 
(0.4
)
 
29.3

 
14.7

 

 
43.6

Fee and other income
 

 
2.9

 
0.9

 

 
3.8

Net realized investment gains (losses)
 

 
5.2

 
(0.7
)
 

 
4.5

Total revenue
 
(0.4
)
 
172.9

 
278.5

 

 
451.0

Expenses:
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 

 
72.5

 
158.1

 

 
230.6

Underwriting, acquisition and insurance
   expenses
 
3.8

 
58.5

 
92.4

 

 
154.7

Interest expense
 
1.1

 
4.2

 
1.7

 

 
7.0

Fee and other expense
 

 
3.2

 
0.1

 

 
3.3

Foreign currency exchange (gains) losses
 

 
(0.1
)
 
4.7

 

 
4.6

Total expenses
 
4.9

 
138.3

 
257.0

 

 
400.2

(Loss) income before income taxes
 
(5.3
)
 
34.6

 
21.5

 

 
50.8

Provision (benefit) for income taxes
 

 
8.1

 
(3.3
)
 

 
4.8

Net (loss) income before equity in earnings of subsidiaries
 
(5.3
)
 
26.5

 
24.8

 

 
46.0

Equity in undistributed earnings of subsidiaries
 
51.3

 

 

 
(51.3
)
 

Net income
 
$
46.0

 
$
26.5

 
$
24.8

 
$
(51.3
)
 
$
46.0


(1) 
Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
(2) 
Includes all Argo Group parent company eliminations.

CONDENSED CONSOLIDATING STATEMENT OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2018
(in millions)
(Unaudited)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Premiums and other revenue:
 

 

 

 

 

Earned premiums
 
$

 
$
423.9

 
$
408.5

 
$

 
$
832.4

Net investment (expense) income
 
(1.4
)
 
41.1

 
29.5

 

 
69.2

Fee and other income
 

 
1.5

 
2.4

 

 
3.9

Net realized investment gains (losses)
 
0.1

 
(0.9
)
 
(4.4
)
 

 
(5.2
)
Total revenue
 
(1.3
)
 
465.6

 
436.0

 

 
900.3

Expenses:
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 

 
209.8

 
272.9

 

 
482.7

Underwriting, acquisition and insurance
   expenses
 
8.2

 
165.2

 
143.6

 

 
317.0

Interest expense
 
2.9

 
8.8

 
3.8

 

 
15.5

Fee and other expense
 

 
2.5

 
1.1

 

 
3.6

Foreign currency exchange losses (gains)
 

 
0.2

 
(0.8
)
 

 
(0.6
)
Total expenses
 
11.1

 
386.5

 
420.6

 

 
818.2

(Loss) income before income taxes
 
(12.4
)
 
79.1

 
15.4

 

 
82.1

Provision for income taxes
 

 
13.2

 
2.3

 

 
15.5

Net (loss) income before equity in earnings of subsidiaries
 
(12.4
)
 
65.9

 
13.1

 

 
66.6

Equity in undistributed earnings of subsidiaries
 
79.0

 

 

 
(79.0
)
 

Net income
 
$
66.6

 
$
65.9

 
$
13.1

 
$
(79.0
)
 
$
66.6


(1) 
Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
(2) 
Includes all Argo Group parent company eliminations.

CONDENSED CONSOLIDATING STATEMENT OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2017
(in millions)
(Unaudited)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Premiums and other revenue:
 

 

 

 

 

Earned premiums
 
$

 
$
266.4

 
$
512.1

 
$

 
$
778.5

Net investment (expense) income
 
(2.1
)
 
48.2

 
28.0

 

 
74.1

Fee and other income
 

 
5.7

 
1.7

 

 
7.4

Net realized investment gains (losses)
 
0.5

 
19.0

 
(0.4
)
 

 
19.1

Total revenue
 
(1.6
)
 
339.3

 
541.4

 

 
879.1

Expenses:
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 

 
148.6

 
304.5

 

 
453.1

Underwriting, acquisition and insurance
   expenses
 
12.2

 
116.7

 
179.4

 

 
308.3

Interest expense
 
1.4

 
8.5

 
3.0

 

 
12.9

Fee and other expense
 

 
6.6

 
0.8

 

 
7.4

Foreign currency exchange losses
 

 

 
3.9

 

 
3.9

Total expenses
 
13.6

 
280.4

 
491.6

 

 
785.6

(Loss) income before income taxes
 
(15.2
)
 
58.9

 
49.8

 

 
93.5

Provision for income taxes
 

 
14.5

 
(3.7
)
 

 
10.8

Net (loss) income before equity in earnings of subsidiaries
 
(15.2
)
 
44.4

 
53.5

 

 
82.7

Equity in undistributed earnings of subsidiaries
 
97.9

 

 

 
(97.9
)
 

Net income
 
$
82.7

 
$
44.4

 
$
53.5

 
$
(97.9
)
 
$
82.7


(1) 
Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
(2) 
Includes all Argo Group parent company eliminations.


CONDENSED CONS
Condensed Consolidating Statement of Cash Flows
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2018
(in millions)
(Unaudited)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Net cash flows from operating activities
 
$
39.2

 
$
48.8

 
$
37.9

 
$

 
$
125.9

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
Proceeds from sales of investments
 

 
650.8

 
374.2

 

 
1,025.0

Maturities and mandatory calls of fixed
   maturity investments
 

 
226.8

 
61.9

 

 
288.7

Purchases of investments
 

 
(937.5
)
 
(436.6
)
 

 
(1,374.1
)
Change in short-term investments and
   foreign regulatory deposits
 
(0.7
)
 
(2.8
)
 
(64.1
)
 

 
(67.6
)
Settlements of foreign currency exchange
   forward contracts
 
(0.4
)
 
0.2

 
2.5

 

 
2.3

Cash included in acquisition of Ariscom
 

 

 
15.6

 

 
15.6

Purchases of fixed assets and other, net
 
(0.1
)
 
(14.8
)
 
(12.8
)
 

 
(27.7
)
Cash used in investing activities
 
(1.2
)
 
(77.3
)
 
(59.3
)
 

 
(137.8
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
Activity under stock incentive plans
 
0.2

 

 

 

 
0.2

Repurchase of Company's common shares
 
(19.4
)
 

 

 

 
(19.4
)
Payment of cash dividend to common
   shareholders
 
(18.7
)
 

 

 

 
(18.7
)
Cash used in financing activities
 
(37.9
)
 

 

 

 
(37.9
)
Effect of exchange rate changes on cash
 

 

 
(0.1
)
 

 
(0.1
)
Change in cash
 
0.1

 
(28.5
)
 
(21.5
)
 

 
(49.9
)
Cash, beginning of year
 
0.9

 
47.8

 
127.9

 

 
176.6

Cash, end of period
 
$
1.0

 
$
19.3

 
$
106.4

 
$

 
$
126.7


(1) 
Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations.
(2) 
Includes all Argo Group parent company eliminations.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2017
(in millions)
(Unaudited)
 
 
 
Argo Group
International
Holdings, Ltd
(Parent Guarantor)
 
Argo Group US, Inc.
and Subsidiaries
(Subsidiary Issuer)
 
Other Subsidiaries
and Eliminations (1)
 
Consolidating
Adjustments (2)
 
Total
Net cash flows from operating activities
 
$
5.3

 
$
(8.0
)
 
$
40.0

 
$

 
$
37.3

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
Proceeds from sales of investments
 

 
514.4

 
444.0

 

 
958.4

Maturities and mandatory calls of fixed
   maturity investments
 

 
240.6

 
94.5

 

 
335.1

Purchases of investments
 

 
(811.0
)
 
(655.0
)
 

 
(1,466.0
)
Change in short-term investments and
   foreign regulatory deposits
 
0.4

 
72.0

 
228.0

 

 
300.4

Settlements of foreign currency exchange
   forward contracts
 
0.8

 

 
(0.3
)
 

 
0.5

Acquisition of Maybrooke, net of cash and
   cash equivalents acquired
 
(235.3
)
 

 
130.1

 

 
(105.2
)
Issuance of intercompany note, net
 

 

 
(120.0
)
 
120.0

 

Purchases of fixed assets and other, net
 
(0.1
)
 
(12.7
)
 
(24.9
)
 

 
(37.7
)
Cash (used in) provided by investing activities
 
(234.2
)
 
3.3

 
96.4

 
$
120.0

 
(14.5
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
Additional long-term borrowings
 
125.0

 

 

 

 
125.0

Borrowing under intercompany note, net
 
120.0

 

 

 
(120.0
)
 

Activity under stock incentive plans
 
0.5

 

 

 

 
0.5

Repurchase of Company's common shares
 

 
(2.8
)
 
0
 
0
 
(2.8
)
Payment of cash dividend to common shareholders
 
(16.6
)
 

 

 

 
(16.6
)
Cash provided by (used in) financing activities
 
228.9

 
(2.8
)
 

 
(120.0
)
 
106.1

Effect of exchange rate changes on cash
 

 

 
(0.4
)
 

 
(0.4
)
Change in cash
 

 
(7.5
)
 
136.0

 

 
128.5

Cash, beginning of year
 

 
53.7

 
32.3

 

 
86.0

Cash, end of period
 
$

 
$
46.2

 
$
168.3

 
$

 
$
214.5


v3.10.0.1
Basis of Presentation - Additional Information (Detail) - shares
Mar. 07, 2018
Jun. 30, 2018
Mar. 05, 2018
Feb. 20, 2018
Basis Of Presentation [Line Items]        
Stock divided declared   15.00%    
Stock Dividend [Member]        
Basis Of Presentation [Line Items]        
Stock divided declared       15.00%
Additional stock issued as dividend (in shares) 4,397,520      
Ariscom [Member]        
Basis Of Presentation [Line Items]        
Percentage of capital stock acquired     100.00%  
v3.10.0.1
Recently Issued Accounting Pronouncements - Additional Information (Detail)
$ in Millions
Dec. 31, 2017
USD ($)
ASU 2018-02 [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Cumulative effect of adoption of ASU $ 0.0
ASU 2016-01 [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Cumulative effect of adoption of ASU 0.0
AOCI Attributable to Parent [Member] | ASU 2018-02 [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Cumulative effect of adoption of ASU 20.7
AOCI Attributable to Parent [Member] | ASU 2016-01 [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Cumulative effect of adoption of ASU (117.5)
Retained Earnings [Member] | ASU 2018-02 [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Cumulative effect of adoption of ASU (20.7)
Retained Earnings [Member] | ASU 2016-01 [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Cumulative effect of adoption of ASU $ 117.5
v3.10.0.1
Acquisition of Ariscom - Additional Information (Detail)
Mar. 05, 2018
Ariscom [Member]  
Business Acquisition [Line Items]  
Percentage of capital stock acquired 100.00%
v3.10.0.1
Investments - Additional Information (Detail)
$ in Millions
Jun. 30, 2018
USD ($)
security
Dec. 31, 2017
USD ($)
Amortized Cost And Fair Value Debt Securities [Abstract]    
Fair value of investments, assets managed on behalf of the trade capital providers | $ $ 113.2 $ 130.8
Number of securities in an unrealized loss position, total 5,260  
Number of securities in an unrealized loss position for less than one year 3,349  
Number of securities in an unrealized loss position for a period of one year or greater 106  
v3.10.0.1
Investments - Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments (Detail) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Fixed maturities    
Amortized Cost $ 3,338.5 $ 3,320.6
Fair Value 3,301.4 3,343.4 [1]
Fixed Maturities [Member]    
Fixed maturities    
Amortized Cost 3,338.5 3,320.6
Gross Unrealized Gains 22.6 50.1
Gross Unrealized Losses 59.7 27.3
Fair Value 3,301.4 3,343.4
Fixed Maturities [Member] | U.S. Governments [Member]    
Fixed maturities    
Amortized Cost 268.0 419.9
Gross Unrealized Gains 0.2 0.2
Gross Unrealized Losses 7.0 5.0
Fair Value 261.2 415.1
Fixed Maturities [Member] | Foreign Governments [Member]    
Fixed maturities    
Amortized Cost 248.3 229.0
Gross Unrealized Gains 1.7 6.7
Gross Unrealized Losses 5.9 2.5
Fair Value 244.1 233.2
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member]    
Fixed maturities    
Amortized Cost 266.6 327.7
Gross Unrealized Gains 5.9 9.3
Gross Unrealized Losses 1.8 1.1
Fair Value 270.7 335.9
Fixed Maturities [Member] | Corporate Bonds [Member]    
Fixed maturities    
Amortized Cost 1,655.2 1,514.5
Gross Unrealized Gains 10.7 24.4
Gross Unrealized Losses 30.5 13.2
Fair Value 1,635.4 1,525.7
Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member]    
Fixed maturities    
Amortized Cost 145.8 136.3
Gross Unrealized Gains 0.0 0.1
Gross Unrealized Losses 2.8 1.5
Fair Value 143.0 134.9
Fixed Maturities [Member] | Residential Mortgage-backed Securities [Member]    
Fixed maturities    
Amortized Cost 375.7 309.3
Gross Unrealized Gains 2.0 2.8
Gross Unrealized Losses 9.6 2.7
Fair Value 368.1 309.4
Fixed Maturities [Member] | Asset-backed Securities [Member]    
Fixed maturities    
Amortized Cost 159.4 161.3
Gross Unrealized Gains 0.4 0.7
Gross Unrealized Losses 1.3 0.8
Fair Value 158.5 161.2
Fixed Maturities [Member] | Collateralized Debt Obligations [Member]    
Fixed maturities    
Amortized Cost 219.5 222.6
Gross Unrealized Gains 1.7 5.9
Gross Unrealized Losses 0.8 0.5
Fair Value $ 220.4 $ 228.0
[1] Derived from audited consolidated financial statements.
v3.10.0.1
Investments - Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity (Detail)
$ in Millions
Jun. 30, 2018
USD ($)
Amortized Cost  
Due in one year or less $ 208.9
Due after one year through five years 1,482.3
Due after five years through ten years 597.2
Thereafter 149.7
Structured securities 900.4
Total 3,338.5
Fair Value  
Due in one year or less 208.6
Due after one year through five years 1,465.7
Due after five years through ten years 588.0
Thereafter 149.1
Structured securities 890.0
Total $ 3,301.4
v3.10.0.1
Investments - Schedule of Carrying Value and Unfunded Investment Commitments of Other Invested Assets Portfolio (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Schedule of Investments [Line Items]    
Carrying Value $ 4,768.9 $ 4,742.9 [1]
Hedge funds [Member]    
Schedule of Investments [Line Items]    
Carrying Value 140.0 163.6
Unfunded Commitments 0.0 0.0
Private equity [Member]    
Schedule of Investments [Line Items]    
Carrying Value 199.0 179.2
Unfunded Commitments 114.9 129.9
Long only funds [Member]    
Schedule of Investments [Line Items]    
Carrying Value 182.6 196.5
Unfunded Commitments 0.0 0.0
Other [Member]    
Schedule of Investments [Line Items]    
Carrying Value 4.3 4.3
Unfunded Commitments 0.0 0.0
Other Investments [Member]    
Schedule of Investments [Line Items]    
Carrying Value 525.9 543.6
Unfunded Commitments $ 114.9 $ 129.9
[1] Derived from audited consolidated financial statements.
v3.10.0.1
Investments - Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Schedule of Investments [Line Items]    
Unrealized losses one year or greater, less than $ 0.1 $ 0.1
Fixed Maturities [Member]    
Schedule of Investments [Line Items]    
Fair Value, Less Than One Year 2,329.1 1,538.9
Unrealized Losses, Less Than One Year 54.4 17.2
Fair Value, One Year or Greater 102.5 342.7
Unrealized Losses, One Year or Greater 5.3 10.1
Fair Value, Total 2,431.6 1,881.6
Unrealized Losses, Total 59.7 27.3
Fixed Maturities [Member] | U.S. Governments [Member]    
Schedule of Investments [Line Items]    
Fair Value, Less Than One Year 223.4 313.7
Unrealized Losses, Less Than One Year 6.1 1.9
Fair Value, One Year or Greater 17.2 83.7
Unrealized Losses, One Year or Greater 0.9 3.1
Fair Value, Total 240.6 397.4
Unrealized Losses, Total 7.0 5.0
Fixed Maturities [Member] | Foreign Governments [Member]    
Schedule of Investments [Line Items]    
Fair Value, Less Than One Year 212.9 175.2
Unrealized Losses, Less Than One Year 5.9 2.0
Fair Value, One Year or Greater 5.0 35.9
Unrealized Losses, One Year or Greater 0.0 0.5
Fair Value, Total 217.9 211.1
Unrealized Losses, Total 5.9 2.5
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member]    
Schedule of Investments [Line Items]    
Fair Value, Less Than One Year 67.5 33.3
Unrealized Losses, Less Than One Year 1.1 0.5
Fair Value, One Year or Greater 14.6 22.4
Unrealized Losses, One Year or Greater 0.7 0.6
Fair Value, Total 82.1 55.7
Unrealized Losses, Total 1.8 1.1
Fixed Maturities [Member] | Corporate Bonds [Member]    
Schedule of Investments [Line Items]    
Fair Value, Less Than One Year 1,195.0 674.1
Unrealized Losses, Less Than One Year 28.7 9.9
Fair Value, One Year or Greater 28.9 77.7
Unrealized Losses, One Year or Greater 1.8 3.3
Fair Value, Total 1,223.9 751.8
Unrealized Losses, Total 30.5 13.2
Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member]    
Schedule of Investments [Line Items]    
Fair Value, Less Than One Year 105.2 58.2
Unrealized Losses, Less Than One Year 1.9 0.4
Fair Value, One Year or Greater 15.8 37.8
Unrealized Losses, One Year or Greater 0.9 1.1
Fair Value, Total 121.0 96.0
Unrealized Losses, Total 2.8 1.5
Fixed Maturities [Member] | Residential Mortgage-backed Securities [Member]    
Schedule of Investments [Line Items]    
Fair Value, Less Than One Year 288.2 164.4
Unrealized Losses, Less Than One Year 8.9 1.6
Fair Value, One Year or Greater 14.0 52.4
Unrealized Losses, One Year or Greater 0.7 1.1
Fair Value, Total 302.2 216.8
Unrealized Losses, Total 9.6 2.7
Fixed Maturities [Member] | Asset-backed Securities [Member]    
Schedule of Investments [Line Items]    
Fair Value, Less Than One Year 107.1 85.4
Unrealized Losses, Less Than One Year 1.0 0.4
Fair Value, One Year or Greater 7.0 31.9
Unrealized Losses, One Year or Greater 0.3 0.4
Fair Value, Total 114.1 117.3
Unrealized Losses, Total 1.3 0.8
Fixed Maturities [Member] | Collateralized Debt Obligations [Member]    
Schedule of Investments [Line Items]    
Fair Value, Less Than One Year 129.8 34.6
Unrealized Losses, Less Than One Year 0.8 0.5
Fair Value, One Year or Greater 0.0 0.9
Unrealized Losses, One Year or Greater 0.0 0.0
Fair Value, Total 129.8 35.5
Unrealized Losses, Total $ 0.8 $ 0.5
v3.10.0.1
Investments - Schedule of Recognized Other-than-temporary Losses on Fixed Maturities and Equity Portfolios (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Other-than-temporary impairment:        
Other-than-temporary impairment losses $ (0.9) $ (1.1) $ (1.9) $ (1.5)
Equity Securities [Member]        
Other-than-temporary impairment:        
Other-than-temporary impairment losses 0.0 (1.1) 0.0 (1.5)
Corporate Bonds [Member]        
Other-than-temporary impairment:        
Other-than-temporary impairment losses $ (0.9) $ 0.0 $ (1.9) $ 0.0
v3.10.0.1
Investments - Schedule of Company's Gross Realized Investment Gains (Losses) (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Schedule of Investments [Line Items]        
Realized gains on fixed maturities and other $ 19.3 $ 22.6 $ 38.5 $ 51.6
Realized losses on fixed maturities and other (23.7) (18.1) (38.9) (32.5)
Net realized gains on equity securities sold during the period 10.6 0.0 21.8 0.0
Change in unrealized gains (losses) on equity securities held at the end of the period 4.3 0.0 (26.6) 0.0
Net realized gains (losses) on equity securities 14.9 0.0 (4.8) 0.0
Net realized investment gains (losses) before income taxes 10.5 4.5 (5.2) 19.1
Income tax (expense) benefit (2.4) (1.3) 0.5 (5.7)
Net realized investment gains (losses), net of income taxes 8.1 3.2 (4.7) 13.4
Fixed Maturities [Member]        
Schedule of Investments [Line Items]        
Realized gains on fixed maturities and other 3.7 5.5 11.2 12.6
Realized losses on fixed maturities and other (6.5) (5.0) (11.4) (11.2)
Equity Securities [Member]        
Schedule of Investments [Line Items]        
Realized gains on fixed maturities and other 0.0 12.0 0.0 27.7
Realized losses on fixed maturities and other 0.0 (1.8) 0.0 (2.5)
Short-Term Investments [Member]        
Schedule of Investments [Line Items]        
Realized gains on fixed maturities and other 15.6 5.1 27.3 11.3
Realized losses on fixed maturities and other (16.3) (10.2) (25.6) (17.3)
Other-Than-Temporary Impairment Losses on Fixed Maturities [Member]        
Schedule of Investments [Line Items]        
Realized losses on fixed maturities and other (0.9) 0.0 (1.9) 0.0
Other-Than-Temporary Impairment Losses on Equity Securities [Member]        
Schedule of Investments [Line Items]        
Realized losses on fixed maturities and other $ 0.0 $ (1.1) $ 0.0 $ (1.5)
v3.10.0.1
Investments - Schedule of Changes in Unrealized Appreciation (Depreciation) (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Schedule of Investments [Line Items]        
Net unrealized investment (losses) gains before income taxes $ (21.6) $ 24.8 $ (58.8) $ 42.7
Income tax benefit (expense) 2.8 (5.1) 9.1 (9.7)
Net unrealized investment (losses) gains, net of income taxes (18.8) 19.7 (49.7) 33.0
Fixed Maturities [Member]        
Schedule of Investments [Line Items]        
Net unrealized investment (losses) gains before income taxes (21.8) 19.5 (58.9) 32.0
Equity Securities [Member]        
Schedule of Investments [Line Items]        
Net unrealized investment (losses) gains before income taxes 0.0 3.3 0.0 8.7
Other [Member]        
Schedule of Investments [Line Items]        
Net unrealized investment (losses) gains before income taxes 0.1 2.0 0.1 2.0
Short-Term Investments [Member]        
Schedule of Investments [Line Items]        
Net unrealized investment (losses) gains before income taxes $ 0.1 $ 0.0 $ 0.0 $ 0.0
v3.10.0.1
Investments - Schedule of Fair Value of Foreign Currency Exchange Forward Contracts (Detail) - Foreign Currency Exchange Forward Contracts [Member] - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Schedule of Investments [Line Items]    
Foreign currency exchange, fair value $ (2.3) $ (0.4)
Operational Currency Exposure [Member]    
Schedule of Investments [Line Items]    
Foreign currency exchange, fair value (2.2) (0.2)
Asset Manager Investment Exposure [Member]    
Schedule of Investments [Line Items]    
Foreign currency exchange, fair value 0.2 (0.9)
Total return strategy [Member]    
Schedule of Investments [Line Items]    
Foreign currency exchange, fair value $ (0.3) $ 0.7
v3.10.0.1
Investments - Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts (Detail) - Foreign Currency Exchange Forward Contracts [Member] - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Schedule of Investments [Line Items]        
Gross realized investment gains $ 14.7 $ 4.2 $ 25.9 $ 9.8
Gross realized investment losses (15.4) (9.9) (24.0) (15.4)
Net realized investment (losses) gains on foreign currency exchange forward contracts (0.7) (5.7) 1.9 (5.6)
Operational Currency Exposure [Member]        
Schedule of Investments [Line Items]        
Gross realized investment gains 1.7 3.7 6.0 5.7
Gross realized investment losses (3.7) (3.7) (4.3) (5.9)
Asset Manager Investment Exposure [Member]        
Schedule of Investments [Line Items]        
Gross realized investment gains 8.7 0.0 13.0 0.5
Gross realized investment losses (5.7) (5.4) (11.6) (6.8)
Total return strategy [Member]        
Schedule of Investments [Line Items]        
Gross realized investment gains 4.3 0.5 6.9 3.6
Gross realized investment losses $ (6.0) $ (0.8) $ (8.1) $ (2.7)
v3.10.0.1
Investments - Components of Restricted Assets (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Jun. 30, 2017
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]    
Securities and cash on deposit supporting Lloyd’s business $ 373.9 $ 397.2
Total restricted investments 619.0 602.3
Securities Pledged as Collateral [Member]    
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]    
Securities pledged as collateral for letters of credit 78.1 29.1
Securities Deposits For Regulatory and Other Purposes [Member]    
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]    
Securities on deposit for regulatory and other purposes $ 167.0 $ 176.0
v3.10.0.1
Investments - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value $ 4,768.9 $ 4,742.9 [1]
Other Investments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 525.9 543.6
Fair Value, Measurements, Recurring [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 4,338.4 4,308.1
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 1,128.1 1,227.3
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 3,200.7 3,076.6
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 9.6 4.2
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 3,301.4 3,343.4
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Collateralized Loan Obligations [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 220.4 228.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Residential Mortgage-backed Securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 368.1 309.4
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 252.2 410.6
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Level 1 [Member] | Collateralized Loan Obligations [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Level 1 [Member] | Residential Mortgage-backed Securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 3,045.6 2,930.9
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Level 2 [Member] | Collateralized Loan Obligations [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 220.4 228.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Level 2 [Member] | Residential Mortgage-backed Securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 368.1 309.4
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 3.6 1.9
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Level 3 [Member] | Collateralized Loan Obligations [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Level 3 [Member] | Residential Mortgage-backed Securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 261.2 415.1
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 252.2 410.6
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 9.0 4.5
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Governments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 244.1 233.2
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Governments [Member] | Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Governments [Member] | Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 244.1 233.2
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Governments [Member] | Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 270.7 335.9
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 270.7 335.9
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Corporate Bonds [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 1,635.4 1,525.7
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Corporate Bonds [Member] | Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Corporate Bonds [Member] | Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 1,631.8 1,523.8
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Corporate Bonds [Member] | Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 3.6 1.9
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 143.0 134.9
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member] | Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member] | Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 143.0 134.9
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Commercial Mortgage-backed Securities [Member] | Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Asset-backed Securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 158.5 161.2
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Asset-backed Securities [Member] | Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Asset-backed Securities [Member] | Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 158.5 161.2
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Asset-backed Securities [Member] | Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 492.2 487.4
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 484.1 483.0
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 2.1 2.1
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 6.0 2.3
Fair Value, Measurements, Recurring [Member] | Other Investments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 95.4 108.8
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 95.4 108.8
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0.0 0.0
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 449.4 368.5
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member] | Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 391.8 333.7
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member] | Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 57.6 34.8
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member] | Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value $ 0.0 $ 0.0
[1] Derived from audited consolidated financial statements.
v3.10.0.1
Investments - Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3 (Detail) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning balance   $ 2.4
Transfers into Level 3 $ 0.0 0.0
Transfers out of Level 3 0.0 0.0
Included in net income (loss) 0.0 0.0
Included in other comprehensive income (loss) 0.0 0.1
Purchases 5.8 1.7
Issuances 0.0 0.0
Sales (0.4) 0.0
Settlements 0.0 0.0
Ending balance 9.6 4.2
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at end of period 0.0 0.0
Credit-Financial [Member]    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning balance   2.0
Transfers into Level 3 0.0 0.0
Transfers out of Level 3 0.0 0.0
Included in net income (loss) 0.0 0.0
Included in other comprehensive income (loss) 0.0 (0.1)
Purchases 1.7 0.0
Issuances 0.0 0.0
Sales 0.0 0.0
Settlements 0.0 0.0
Ending balance 3.6 1.9
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at end of period 0.0 0.0
Equity Securities [Member]    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning balance   0.4
Transfers into Level 3 0.0 0.0
Transfers out of Level 3 0.0 0.0
Included in net income (loss) 0.0 0.0
Included in other comprehensive income (loss) 0.0 0.2
Purchases 4.1 1.7
Issuances 0.0 0.0
Sales (0.4) 0.0
Settlements 0.0 0.0
Ending balance 6.0 2.3
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at end of period $ 0.0 $ 0.0
v3.10.0.1
Reserves for Losses and Loss Adjustment Expenses - Reserves for Losses and Loss Adjustment Expenses (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
[1]
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]          
Net reserves beginning of the year     $ 2,488.0 $ 2,180.2  
Losses and LAE incurred during current calendar year, net of reinsurance:          
Current accident year     487.1 447.4  
Prior accident years     (4.4) 5.7  
Losses and LAE incurred during calendar year, net of reinsurance $ 245.5 $ 230.6 482.7 453.1  
Losses and LAE payments made during current calendar year, net of reinsurance:          
Current accident year     152.1 88.9  
Prior accident years     327.0 290.8  
Losses and LAE payments made during current calendar year, net of reinsurance:     479.1 379.7  
Change in participation interest     (29.4) (23.2)  
Foreign exchange adjustments     (24.0) 1.8  
Net reserves - end of period 2,487.6 2,364.8 2,487.6 2,364.8  
Reinsurance recoverables on unpaid losses and LAE, end of period 1,755.3 1,268.0 1,755.3 1,268.0  
Gross reserves - end of period $ 4,242.9 $ 3,632.8 4,242.9 3,632.8 $ 4,201.0
Maybrooke [Member]          
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]          
Net reserves acquired     0.0 132.6  
Ariscom [Member]          
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]          
Net reserves acquired     $ 49.4 $ 0.0  
[1] Derived from audited consolidated financial statements.
v3.10.0.1
Reserves for Losses and Loss Adjustment Expenses - Impact from (Favorable) Unfavorable Development of Prior Accident Years' Loss and LAE Reserves on Each Reporting Segment (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items]    
Total unfavorable (favorable) prior-year development $ (4.4) $ 5.7
U.S. Operations [Member]    
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items]    
Total unfavorable (favorable) prior-year development (4.1) (18.0)
International Operations [Member]    
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items]    
Total unfavorable (favorable) prior-year development (3.3) 19.6
Run Off Lines [Member]    
Schedule Of Prior Accident Years Loss And Loss Adjustment Expense Reserves Development [Line Items]    
Total unfavorable (favorable) prior-year development $ 3.0 $ 4.1
v3.10.0.1
Disclosures about Fair Value of Financial Instruments - Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Junior Subordinated Debentures [Member] | Trust Preferred Debentures [Member] | Carrying Amount [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments $ 172.7 $ 172.7
Junior Subordinated Debentures [Member] | Trust Preferred Debentures [Member] | Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 172.9 172.9
Junior Subordinated Debentures [Member] | Junior Subordinated Debentures, Maybrooke [Member] | Carrying Amount [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 84.1 83.9
Junior Subordinated Debentures [Member] | Junior Subordinated Debentures, Maybrooke [Member] | Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 83.3 85.0
Senior Unsecured Fixed Rate Notes [Member] | Carrying Amount [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 139.7 139.6
Senior Unsecured Fixed Rate Notes [Member] | Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 141.1 141.2
Floating Rate Loan Stock [Member] | Carrying Amount [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments 59.0 58.9
Floating Rate Loan Stock [Member] | Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Instruments $ 59.0 $ 59.0
v3.10.0.1
Shareholders Equity - Additional Information (Detail) - USD ($)
3 Months Ended 6 Months Ended
Jun. 15, 2018
May 08, 2018
Mar. 07, 2018
Jun. 26, 2017
Jun. 01, 2017
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Feb. 20, 2018
May 03, 2016
Class of Stock [Line Items]                      
Stock divided declared           15.00%   15.00%      
Dividend declared per common share (in dollars per share)   $ 0.27     $ 0.23 $ 0.27 $ 0.23 $ 0.54 $ 0.47    
Cash dividends paid - common shares, total $ 9,400,000     $ 8,300,000       $ 18,700,000 $ 16,600,000    
Common shares repurchased (in shares)               344,533 46,500    
Common shares repurchased on open market, total cost               $ 20,400,000 $ 2,800,000    
2016 Repurchase Authorization [Member]                      
Class of Stock [Line Items]                      
Total number of shares authorized for purchase                     $ 150,000,000
Remaining number of shares available under repurchase authorization           $ 64,600,000.0   $ 64,600,000.0      
Common shares repurchased (in shares)               344,533      
Common shares repurchased on open market, total cost               $ 20,400,000      
Stock Dividend [Member]                      
Class of Stock [Line Items]                      
Stock divided declared                   15.00%  
Additional stock issued as dividend (in shares)     4,397,520                
v3.10.0.1
Shareholders Equity - Schedule of Repurchase of Shares (Detail) - USD ($)
$ / shares in Units, $ in Millions
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Equity, Class of Treasury Stock [Line Items]    
Number of shares repurchased (in shares) 344,533 46,500
Average price of shares repurchased (in dollars per share) $ 59.20 $ 59.54
Total cost $ 20.4 $ 2.8
10b5-1 Trading Plan Initiated In 12/15/2017 Member]    
Equity, Class of Treasury Stock [Line Items]    
Number of shares repurchased (in shares) 225,281  
Average price of shares repurchased (in dollars per share) $ 59.31  
Total cost $ 13.3  
10b5-1 Trading Plan Initiated 6/15/2018 [Member]    
Equity, Class of Treasury Stock [Line Items]    
Number of shares repurchased (in shares) 29,947  
Average price of shares repurchased (in dollars per share) $ 58.86  
Total cost $ 1.8  
Open Market Repurchase Authorization 2016 [Member]    
Equity, Class of Treasury Stock [Line Items]    
Number of shares repurchased (in shares) 89,305  
Average price of shares repurchased (in dollars per share) $ 59.03  
Total cost $ 5.3  
v3.10.0.1
Accumulated Other Comprehensive (Loss) Income - Changes in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Beginning Balance     $ 1,819.7 [1] $ 1,792.7  
Other comprehensive income (loss) before reclassifications     (56.1) 45.1  
Amounts reclassified from accumulated other comprehensive income (loss)     2.4 (12.7)  
Net current-period other comprehensive income (loss)     (150.5)    
Other comprehensive income, net of tax $ (21.7) $ 18.5 (53.7) 32.4  
Ending Balance 1,797.1 1,891.3 1,797.1 1,891.3  
ASU 2016-01 [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Cumulative effect of adoption of ASU         $ 0.0
ASU 2018-02 [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Cumulative effect of adoption of ASU         0.0
Foreign Currency Translation Adjustments [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Beginning Balance     (19.0) (17.6)  
Other comprehensive income (loss) before reclassifications     (4.0) (0.6)  
Amounts reclassified from accumulated other comprehensive income (loss)     0.0 0.0  
Net current-period other comprehensive income (loss)     (4.0)    
Other comprehensive income, net of tax       (0.6)  
Ending Balance (23.0) (18.2) (23.0) (18.2)  
Foreign Currency Translation Adjustments [Member] | ASU 2016-01 [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Cumulative effect of adoption of ASU         0.0
Foreign Currency Translation Adjustments [Member] | ASU 2018-02 [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Cumulative effect of adoption of ASU         0.0
Unrealized Holding Gains on Securities [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Beginning Balance     121.9 72.4  
Other comprehensive income (loss) before reclassifications     (52.1) 45.7  
Amounts reclassified from accumulated other comprehensive income (loss) 12.6 (1.7) 2.4 (12.7)  
Net current-period other comprehensive income (loss)     (145.1)    
Other comprehensive income, net of tax       33.0  
Ending Balance (23.2) 105.4 (23.2) 105.4  
Unrealized Holding Gains on Securities [Member] | ASU 2016-01 [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Cumulative effect of adoption of ASU         (117.5)
Unrealized Holding Gains on Securities [Member] | ASU 2018-02 [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Cumulative effect of adoption of ASU         22.1
Defined Benefit Pension Plans [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Beginning Balance     (6.3) (7.1)  
Other comprehensive income (loss) before reclassifications     0.0 0.0  
Amounts reclassified from accumulated other comprehensive income (loss)     0.0 0.0  
Net current-period other comprehensive income (loss)     (1.4)    
Other comprehensive income, net of tax       0.0  
Ending Balance (7.7) (7.1) (7.7) (7.1)  
Defined Benefit Pension Plans [Member] | ASU 2016-01 [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Cumulative effect of adoption of ASU         0.0
Defined Benefit Pension Plans [Member] | ASU 2018-02 [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Cumulative effect of adoption of ASU         (1.4)
AOCI Attributable to Parent [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Beginning Balance     96.6 47.7  
Other comprehensive income, net of tax     (53.7) 32.4  
Ending Balance $ (53.9) $ 80.1 $ (53.9) $ 80.1  
AOCI Attributable to Parent [Member] | ASU 2016-01 [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Cumulative effect of adoption of ASU         (117.5)
AOCI Attributable to Parent [Member] | ASU 2018-02 [Member]          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Cumulative effect of adoption of ASU         $ 20.7
[1] Derived from audited consolidated financial statements.
v3.10.0.1
Accumulated Other Comprehensive (Loss) Income - Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Unrealized gains and losses on securities:        
Net of taxes     $ 2.4 $ (12.7)
Unrealized Gains and Losses on Securities [Member]        
Unrealized gains and losses on securities:        
Net realized investment gains (losses) $ 15.1 $ (2.7) 2.6 (18.9)
Provision for income taxes (2.5) 1.0 (0.2) 6.2
Net of taxes $ 12.6 $ (1.7) $ 2.4 $ (12.7)
v3.10.0.1
Net Income Per Common Share - Net Income Per Common Share on Basic and Diluted Basis (Detail) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Earnings Per Share [Abstract]        
Net income $ 41.8 $ 46.0 $ 66.6 $ 82.7
Weighted average common shares outstanding - basic (in shares) 33,938,509 34,731,866 33,903,809 34,643,594
Effect of dilutive securities:        
Equity compensation awards (in shares) 730,409 973,618 801,002 1,001,046
Weighted average common shares outstanding - diluted (in shares) 34,668,918 35,705,484 34,704,811 35,644,640
Net income per common share - basic (in dollars per share) $ 1.23 $ 1.32 $ 1.96 $ 2.39
Net income per common share - diluted (in dollars per share) $ 1.20 $ 1.29 $ 1.92 $ 2.32
v3.10.0.1
Net Income Per Common Share - Additional Information (Detail) - shares
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Earnings Per Share [Abstract]          
Treasury shares (in shares) 11,129,540 10,075,255 11,129,540 10,075,255 10,785,007
Equity compensation awards with anti-dilutive effect (in shares) 0 0 0 0  
v3.10.0.1
Supplemental Cash Flow Information - Schedule of Interest Paid and Income Taxes Paid (Recovered) (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Supplemental Cash Flow [Line Items]    
Total interest paid $ 15.4 $ 12.6
Income taxes paid 8.2 9.9
Income taxes recovered 0.0 (2.2)
Income taxes paid, net 8.2 7.7
Revolving Credit Facility [Member]    
Supplemental Cash Flow [Line Items]    
Total interest paid 0.3 0.3
Senior Unsecured Fixed Rate Notes [Member]    
Supplemental Cash Flow [Line Items]    
Total interest paid 4.7 4.7
Junior Subordinated Debentures [Member]    
Supplemental Cash Flow [Line Items]    
Total interest paid 7.1 6.0
Other Indebtedness [Member]    
Supplemental Cash Flow [Line Items]    
Total interest paid $ 3.3 $ 1.6
v3.10.0.1
Share-based Compensation - Additional Information (Detail) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended
May 31, 2014
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Nov. 30, 2007
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation arrangement by share-based payment award, award vesting period, years       5 years 5 years  
Stock divided declared   15.00%   15.00%    
Percentage increase in number of awards outstanding due to stock dividend       15.00%    
Reduction in exercise price of awards outstanding due to stock dividend       13.04%    
Employee Stock Option [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Expiration period       7 years    
Restricted Stock Units (RSUs) [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation arrangement by share-based payment award, compensation expense   $ 4,800,000 $ 2,400,000 $ 8,200,000 $ 5,200,000  
Employee service share-based compensation, unrecognized compensation costs on non-vested awards   26,600,000   $ 26,600,000    
Restricted Stock Units (RSUs) [Member] | Minimum [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation arrangement by share-based payment award, award vesting period, years       1 year    
Restricted Stock Units (RSUs) [Member] | Maximum [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation arrangement by share-based payment award, award vesting period, years       8 years    
Stock-Settled SARs Activity [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation arrangement by share-based payment award, compensation expense   400,000 2,000,000 $ 1,500,000 2,700,000  
Employee service share-based compensation, unrecognized compensation costs on non-vested awards   1,200,000   $ 1,200,000    
Stock-Settled SARs Activity [Member] | Minimum [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation arrangement by share-based payment award, award vesting period, years       1 year    
Stock-Settled SARs Activity [Member] | Maximum [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation arrangement by share-based payment award, award vesting period, years       4 years    
Cash Settled S A Rs Activity [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation arrangement by share-based payment award, compensation expense   300,000 $ 2,300,000 $ 800,000 $ 900,000  
Employee service share-based compensation, unrecognized compensation costs on non-vested awards   $ 0   $ 0    
2014 Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares)           4,500,000.0
Share-based compensation arrangement by share-based payment award, number of shares available for grant (in shares) 1,460,000.00          
2007 Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation arrangement by share-based payment award, additional number of shares authorized (in shares) 2,800,000.0          
2007 Plan [Member] | Share Options and Stock Appreciation Rights [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Count of restricted shares, settle in common shares (in shares)       1    
2007 Plan [Member] | Restricted Shares, RSUs, Performance Units, Performance Shares, and Other [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Count of restricted shares, settle in common shares (in shares)       2.75    
v3.10.0.1
Share-based Compensation - Fair Value Assumptions (Detail)
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]    
Risk-free rate of return 2.73% 1.83%
Expected dividend yields 1.87% 1.68%
Expected award life (years) 4 years 5 months 27 days 4 years 5 months 23 days
Expected volatility 18.13% 18.64%
v3.10.0.1
Share-based Compensation - Summary of Restricted Share Activity (Detail) - Restricted Stock Units (RSUs) [Member]
6 Months Ended
Jun. 30, 2018
$ / shares
shares
Shares  
Outstanding at January 1, 2018 (in shares) | shares 767,140
Granted (in shares) | shares 319,134
Vested and issued (in shares) | shares (199,193)
Expired or forfeited (in shares) | shares (85,003)
Outstanding at June 30, 2018 (in shares) | shares 802,078
Weighted-Average Grant Date Fair Value  
Outstanding, beginning balance (in dollars per share) | $ / shares $ 42.91
Granted (in dollars per share) | $ / shares 47.57
Vested and issued (in dollars per share) | $ / shares 42.99
Expired or forfeited (in dollars per share) | $ / shares 44.74
Outstanding, ending balance (in dollars per share) | $ / shares $ 44.55
v3.10.0.1
Share-based Compensation - Summary of SARs Activity (Detail)
6 Months Ended
Jun. 30, 2018
$ / shares
shares
Stock-Settled SARs Activity [Member]  
Shares  
Outstanding at January 1, 2018 (in shares) | shares 1,494,458
Exercised (in shares) | shares (464,807)
Expired or forfeited (in shares) | shares (14,947)
Outstanding at June 30, 2018 (in shares) | shares 1,014,704
Weighted-Average Exercise Price  
Outstanding, beginning balance (in dollars per share) | $ / shares $ 30.85
Exercised (in dollars per share) | $ / shares 27.07
Expired or forfeited (in dollars per share) | $ / shares 36.25
Outstanding, ending balance (in dollars per share) | $ / shares $ 32.50
Cash Settled S A Rs Activity [Member]  
Shares  
Outstanding at January 1, 2018 (in shares) | shares 189,568
Exercised (in shares) | shares (68,955)
Expired or forfeited (in shares) | shares (2,568)
Outstanding at June 30, 2018 (in shares) | shares 118,045
Weighted-Average Exercise Price  
Outstanding, beginning balance (in dollars per share) | $ / shares $ 28.95
Exercised (in dollars per share) | $ / shares 28.56
Expired or forfeited (in dollars per share) | $ / shares 21.23
Outstanding, ending balance (in dollars per share) | $ / shares $ 29.35
v3.10.0.1
Underwriting, Acquisition and Insurance Expenses (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Underwriting Acquisition And Insurance Expenses [Abstract]        
Commissions $ 56.7 $ 69.2 $ 124.7 $ 130.4
General expenses 90.6 88.0 178.4 176.7
Premium taxes, boards and bureaus 8.1 6.7 17.4 14.1
Underwriting, acquisition and insurance expenses, total 155.4 163.9 320.5 321.2
Net amortization (deferral) of policy acquisition costs 1.4 (9.2) (3.5) (12.9)
Total underwriting, acquisition and insurance expenses $ 156.8 $ 154.7 $ 317.0 $ 308.3
v3.10.0.1
Income Taxes - Additional Information (Detail) - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Jun. 30, 2017
Income Taxes Disclosure [Line Items]      
US federal tax rate 21.00% 35.00%  
Net operating losses carryback period 2 years    
Capital losses carryback period 3 years    
Net change in valuation allowance, for deferred tax asset $ 3,400,000    
Net operating loss carryforward 6,900,000    
Loss carryforwards per year 2,800,000    
Unrecognized tax benefits 0   $ 0
Brazil [Member]      
Income Taxes Disclosure [Line Items]      
Valuation allowance 6,600,000    
Maybrooke [Member]      
Income Taxes Disclosure [Line Items]      
Valuation allowance 1,200,000    
Malta [Member]      
Income Taxes Disclosure [Line Items]      
Valuation allowance 1,200,000    
ARIS [Member]      
Income Taxes Disclosure [Line Items]      
Net operating loss carryforward $ 600,000    
v3.10.0.1
Income Taxes - Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 57.1 $ 50.8 $ 82.1 $ 93.5
Effective Tax Rate 26.90% 9.40% 18.90% 11.50%
Bermuda [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ (33.6) $ 25.3 $ (8.4) $ 51.7
Effective Tax Rate 0.00% 0.00% 0.00% 0.00%
United States [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 85.7 $ 34.7 $ 79.5 $ 58.7
Effective Tax Rate 17.10% 23.30% 16.60% 24.80%
United Kingdom [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 6.6 $ (6.5) $ 12.7 $ (12.0)
Effective Tax Rate 10.10% 52.80% 17.10% 32.30%
Belgium [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ (0.1) $ 0.1 $ 0.0 $ 0.1
Effective Tax Rate 36.40% 36.60% 0.00% 36.20%
Brazil [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 0.1 $ 0.6 $ (1.3) $ (0.2)
Effective Tax Rate 0.00% 0.00% 0.00% 0.00%
United Arab Emirates [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 0.2 $ (2.2) $ 0.4 $ (3.5)
Effective Tax Rate 0.00% 0.00% 0.00% 0.00%
Ireland [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ (0.1) $ 0.0 $ (0.1) $ 0.0
Effective Tax Rate 0.00% 0.00% 0.00% 0.00%
Italy [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ (1.1) $ 0.0 $ (1.1) $ 0.0
Effective Tax Rate 0.00% 0.00% 0.00% 0.00%
Malta [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ (0.6) $ 0.5 $ 0.4 $ 1.1
Effective Tax Rate (0.20%) 0.00% 0.20% 0.00%
Luxembourg [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 0.0 $ (1.7) $ 0.0 $ (2.4)
Effective Tax Rate 0.00% 0.00% 0.00% 0.00%
Switzerland [Member]        
Income Tax Examination [Line Items]        
Pre-Tax Income (Loss) $ 0.0 $ 0.0 $ 0.0 $ 0.0
Effective Tax Rate 20.80% 22.10% 20.80% 20.80%
v3.10.0.1
Income Taxes - Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Income Tax Disclosure [Abstract]        
Income tax (benefit) provision at expected rate $ 18.8 $ 10.8 $ 18.4 $ 18.0
Tax effect of:        
Nontaxable investment income (0.5) (1.1) (1.0) (2.4)
Foreign exchange adjustments 0.0 (0.9) (0.2) (0.3)
Withholding taxes 0.2 0.2 0.3 0.3
Change in valuation allowance (0.7) (1.0) (3.4) (1.1)
Other (2.5) (3.2) 1.4 (3.7)
Income tax provision $ 15.3 $ 4.8 $ 15.5 $ 10.8
v3.10.0.1
Commitments and Contingencies - Additional Information (Detail)
$ in Millions
6 Months Ended
Jun. 30, 2018
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Contractual commitments related to its limited partnership investments (up to) $ 114.9
Contractual commitments period (not to exceed) 13 years
v3.10.0.1
Segment Information - Additional Information (Detail)
$ in Millions
3 Months Ended
Jun. 30, 2018
USD ($)
segment
Dec. 31, 2017
USD ($)
Segment Reporting [Abstract]    
Number of reportable segments | segment 2  
Assets associated with trade capital providers | $ $ 765.7 $ 731.8
v3.10.0.1
Segment Information - Revenue and Income (Loss) Before Income Taxes for Each Segment (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Segment Reporting Information [Line Items]        
Earned premiums $ 417.7 $ 399.1 $ 832.4 $ 778.5
Net investment income 33.2 43.6 69.2 74.1
Fee and other income 1.9 3.8 3.9 7.4
Net realized investment gains (losses) before income taxes 10.5 4.5 (5.2) 19.1
Total revenue 463.3 451.0 900.3 879.1
Income (loss) before income taxes 57.1 50.8 82.1 93.5
Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Income (loss) before income taxes 55.4 60.9 111.6 103.9
Corporate and Other [Member]        
Segment Reporting Information [Line Items]        
Net investment income 2.1 3.3 4.5 5.2
Income (loss) before income taxes (8.8) (14.6) (24.3) (29.5)
U.S. Operations [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Earned premiums 267.0 229.1 529.3 450.3
Net investment income 20.7 27.3 43.3 47.2
Income (loss) before income taxes 42.5 53.0 76.5 90.2
International Operations [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Earned premiums 150.5 169.9 302.9 328.1
Net investment income 8.4 10.1 17.2 16.7
Income (loss) before income taxes 13.2 9.1 36.1 17.4
Run Off Lines [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Earned premiums 0.2 0.1 0.2 0.1
Net investment income 2.0 2.9 4.2 5.0
Income (loss) before income taxes $ (0.3) $ (1.2) $ (1.0) $ (3.7)
v3.10.0.1
Segment Information - Schedule of Earned Premiums by Geographic Location (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total earned premiums $ 417.7 $ 399.1 $ 832.4 $ 778.5
Bermuda [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total earned premiums 20.9 23.1 41.4 48.7
Brazil [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total earned premiums 10.5 12.3 23.5 25.1
Italy [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total earned premiums 2.8 0.0 2.8 0.0
Malta [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total earned premiums 15.7 1.3 21.4 2.3
United Kingdom [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total earned premiums 102.0 133.3 216.1 252.1
United States [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total earned premiums $ 265.8 $ 229.1 $ 527.2 $ 450.3
v3.10.0.1
Segment Information - Identifiable Assets (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets $ 9,105.7 $ 8,764.0 [1]
Operating Segments [Member] | U.S. Operations [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets 4,490.6 4,298.4
Operating Segments [Member] | International Operations [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets 3,762.7 3,553.8
Operating Segments [Member] | Run Off Lines [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets 453.8 449.6
Corporate and Other [Member]    
Segment Reporting, Asset Reconciling Item [Line Items]    
Identifiable assets $ 398.6 $ 462.2
[1] Derived from audited consolidated financial statements.
v3.10.0.1
Senior Unsecured Fixed Rate Notes - Additional Information (Detail) - USD ($)
1 Months Ended
Sep. 30, 2012
Jun. 30, 2018
Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]      
Principal amount of senior note   $ 143,800,000 $ 143,800,000
Senior Unsecured Fixed Rate Notes [Member]      
Schedule of Equity Method Investments [Line Items]      
Principal amount of senior note $ 143,750,000    
Interest rate stated percentage 6.50%    
Redemption price, percentage 100.00%    
v3.10.0.1
Senior Unsecured Fixed Rate Notes - Schedule Of Unamortized Debt Issuance Costs Deducted From Carrying Value Of Debt Liability (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Debt Disclosure [Abstract]    
Principal $ 143.8 $ 143.8
Less: unamortized debt issuance costs (4.1) (4.2)
Senior unsecured fixed rate notes, less unamortized debt issuance costs $ 139.7 $ 139.6 [1]
[1] Derived from audited consolidated financial statements.
v3.10.0.1
Senior Unsecured Fixed Rate Notes - Condensed Consolidating Balance Sheet (Detail) - USD ($)
$ in Millions
Jun. 30, 2018
Dec. 31, 2017
Jun. 30, 2017
Dec. 31, 2016
Assets        
Investments $ 4,768.9 $ 4,742.9 [1]    
Cash 126.7 176.6 [1] $ 214.5 $ 86.0
Accrued investment income 24.9 23.5 [1]    
Premiums receivable 698.1 598.6 [1]    
Reinsurance recoverables 2,131.6 2,093.3 [1]    
Goodwill and other intangible assets, net 273.3 258.2    
Current income taxes receivable, net 0.0 1.4 [1]    
Deferred acquisition costs, net 161.1 160.4 [1]    
Ceded unearned premiums 493.4 399.5 [1]    
Other assets 427.7 309.6 [1]    
Intercompany note receivable 0.0 0.0    
Investments in subsidiaries 0.0 0.0    
Total assets 9,105.7 8,764.0 [1]    
Liabilities and Shareholders' Equity        
Reserves for losses and loss adjustment expenses 4,242.9 4,201.0 [1] 3,632.8  
Unearned premiums 1,283.6 1,207.7 [1]    
Funds held and ceded reinsurance payable, net 856.8 776.7    
Debt 581.1 580.7    
Current income taxes payable, net 13.5 0.0 [1]    
Deferred tax liabilities, net 15.1 31.3 [1]    
Accrued underwriting expenses and other liabilities 315.6 146.9    
Due to (from) affiliates 0.0 0.0    
Total liabilities 7,308.6 6,944.3 [1]    
Total shareholders' equity 1,797.1 1,819.7 [1] 1,891.3 1,792.7
Total liabilities and shareholders' equity 9,105.7 8,764.0 [1]    
Argo Group [Member]        
Assets        
Investments 1.2 0.4    
Cash 1.0 0.9 0.0 0.0
Accrued investment income 0.0 0.0    
Premiums receivable 0.0 0.0    
Reinsurance recoverables 0.0 0.0    
Goodwill and other intangible assets, net 42.6 43.2    
Current income taxes receivable, net   0.0    
Deferred acquisition costs, net 0.0 0.0    
Ceded unearned premiums 0.0 0.0    
Other assets 9.6 9.2    
Intercompany note receivable 0.0 0.0    
Investments in subsidiaries 1,968.3 1,940.0    
Total assets 2,022.7 1,993.7    
Liabilities and Shareholders' Equity        
Reserves for losses and loss adjustment expenses 0.0 0.0    
Unearned premiums 0.0 0.0    
Funds held and ceded reinsurance payable, net 0.0 0.0    
Debt 153.4 153.4    
Current income taxes payable, net 0.0      
Deferred tax liabilities, net 0.0 0.0    
Accrued underwriting expenses and other liabilities 11.2 8.9    
Due to (from) affiliates 61.0 11.7    
Total liabilities 225.6 174.0    
Total shareholders' equity 1,797.1 1,819.7    
Total liabilities and shareholders' equity 2,022.7 1,993.7    
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member]        
Assets        
Investments 3,107.6 3,079.0    
Cash 19.3 47.8 46.2 53.7
Accrued investment income 18.6 18.0    
Premiums receivable 221.8 216.5    
Reinsurance recoverables 1,548.5 1,487.3    
Goodwill and other intangible assets, net 124.6 124.9    
Current income taxes receivable, net   2.4    
Deferred acquisition costs, net 82.9 80.7    
Ceded unearned premiums 221.9 198.5    
Other assets 178.4 171.5    
Intercompany note receivable 52.2 50.9    
Investments in subsidiaries 0.0 0.0    
Total assets 5,575.8 5,477.5    
Liabilities and Shareholders' Equity        
Reserves for losses and loss adjustment expenses 2,575.3 2,483.9    
Unearned premiums 721.8 704.0    
Funds held and ceded reinsurance payable, net 754.2 799.4    
Debt 284.7 284.5    
Current income taxes payable, net 14.4      
Deferred tax liabilities, net 15.4 32.5    
Accrued underwriting expenses and other liabilities 94.6 95.0    
Due to (from) affiliates 1.0 (0.4)    
Total liabilities 4,461.4 4,398.9    
Total shareholders' equity 1,114.4 1,078.6    
Total liabilities and shareholders' equity 5,575.8 5,477.5    
Other Subsidiaries and Eliminations [Member]        
Assets        
Investments 1,660.1 1,663.5    
Cash 106.4 127.9 168.3 32.3
Accrued investment income 6.3 5.5    
Premiums receivable 476.3 382.1    
Reinsurance recoverables 583.1 606.0    
Goodwill and other intangible assets, net 106.1 90.1    
Current income taxes receivable, net   (1.0)    
Deferred acquisition costs, net 78.2 79.7    
Ceded unearned premiums 271.5 201.0    
Other assets 239.7 128.9    
Intercompany note receivable (52.2) (50.9)    
Investments in subsidiaries 0.0 0.0    
Total assets 3,475.5 3,232.8    
Liabilities and Shareholders' Equity        
Reserves for losses and loss adjustment expenses 1,667.6 1,717.1    
Unearned premiums 561.8 503.7    
Funds held and ceded reinsurance payable, net 102.6 (22.7)    
Debt 143.0 142.8    
Current income taxes payable, net (0.9)      
Deferred tax liabilities, net (0.3) (1.2)    
Accrued underwriting expenses and other liabilities 209.8 43.0    
Due to (from) affiliates (1.0) 0.4    
Total liabilities 2,682.6 2,383.1    
Total shareholders' equity 792.9 849.7    
Total liabilities and shareholders' equity 3,475.5 3,232.8    
Consolidating Adjustments [Member]        
Assets        
Investments 0.0 0.0    
Cash 0.0 0.0 $ 0.0 $ 0.0
Accrued investment income 0.0 0.0    
Premiums receivable 0.0 0.0    
Reinsurance recoverables 0.0 0.0    
Goodwill and other intangible assets, net 0.0 0.0    
Current income taxes receivable, net   0.0    
Deferred acquisition costs, net 0.0 0.0    
Ceded unearned premiums 0.0 0.0    
Other assets 0.0 0.0    
Intercompany note receivable 0.0 0.0    
Investments in subsidiaries (1,968.3) (1,940.0)    
Total assets (1,968.3) (1,940.0)    
Liabilities and Shareholders' Equity        
Reserves for losses and loss adjustment expenses 0.0 0.0    
Unearned premiums 0.0 0.0    
Funds held and ceded reinsurance payable, net 0.0 0.0    
Debt 0.0 0.0    
Current income taxes payable, net 0.0      
Deferred tax liabilities, net 0.0 0.0    
Accrued underwriting expenses and other liabilities 0.0 0.0    
Due to (from) affiliates (61.0) (11.7)    
Total liabilities (61.0) (11.7)    
Total shareholders' equity (1,907.3) (1,928.3)    
Total liabilities and shareholders' equity $ (1,968.3) $ (1,940.0)    
[1] Derived from audited consolidated financial statements.
v3.10.0.1
Senior Unsecured Fixed Rate Notes - Condensed Consolidating Statement of Income (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Premiums and other revenue:        
Earned premiums $ 417.7 $ 399.1 $ 832.4 $ 778.5
Net investment income 33.2 43.6 69.2 74.1
Fee and other income 1.9 3.8 3.9 7.4
Net realized investment gains (losses) before income taxes 10.5 4.5 (5.2) 19.1
Total revenue 463.3 451.0 900.3 879.1
Expenses:        
Losses and loss adjustment expenses 245.5 230.6 482.7 453.1
Underwriting, acquisition and insurance expenses 156.8 154.7 317.0 308.3
Interest expense 7.8 7.0 15.5 12.9
Fee and other expense 1.6 3.3 3.6 7.4
Foreign currency exchange (gains) losses (5.5) 4.6 (0.6) 3.9
Total expenses 406.2 400.2 818.2 785.6
Income before income taxes 57.1 50.8 82.1 93.5
Income tax provision 15.3 4.8 15.5 10.8
Net (loss) income before equity in earnings of subsidiaries 41.8 46.0 66.6 82.7
Equity in undistributed earnings of subsidiaries 0.0 0.0 0.0 0.0
Net income 41.8 46.0 66.6 82.7
Consolidating Adjustments [Member]        
Premiums and other revenue:        
Earned premiums 0.0 0.0 0.0 0.0
Net investment income 0.0 0.0 0.0 0.0
Fee and other income 0.0 0.0 0.0 0.0
Net realized investment gains (losses) before income taxes 0.0 0.0 0.0 0.0
Total revenue 0.0 0.0 0.0 0.0
Expenses:        
Losses and loss adjustment expenses 0.0 0.0 0.0 0.0
Underwriting, acquisition and insurance expenses 0.0 0.0 0.0 0.0
Interest expense 0.0 0.0 0.0 0.0
Fee and other expense 0.0 0.0 0.0 0.0
Foreign currency exchange (gains) losses 0.0 0.0 0.0 0.0
Total expenses 0.0 0.0 0.0 0.0
Income before income taxes 0.0 0.0 0.0 0.0
Income tax provision 0.0 0.0 0.0 0.0
Net (loss) income before equity in earnings of subsidiaries 0.0 0.0 0.0 0.0
Equity in undistributed earnings of subsidiaries (49.4) (51.3) (79.0) (97.9)
Net income (49.4) (51.3) (79.0) (97.9)
Other Subsidiaries and Eliminations [Member]        
Premiums and other revenue:        
Earned premiums 150.7 263.6 408.5 512.1
Net investment income 14.9 14.7 29.5 28.0
Fee and other income 1.2 0.9 2.4 1.7
Net realized investment gains (losses) before income taxes (4.5) (0.7) (4.4) (0.4)
Total revenue 162.3 278.5 436.0 541.4
Expenses:        
Losses and loss adjustment expenses 131.1 158.1 272.9 304.5
Underwriting, acquisition and insurance expenses 55.5 92.4 143.6 179.4
Interest expense 1.7 1.7 3.8 3.0
Fee and other expense 0.5 0.1 1.1 0.8
Foreign currency exchange (gains) losses (5.6) 4.7 (0.8) 3.9
Total expenses 183.2 257.0 420.6 491.6
Income before income taxes (20.9) 21.5 15.4 49.8
Income tax provision 0.7 (3.3) 2.3 (3.7)
Net (loss) income before equity in earnings of subsidiaries (21.6) 24.8 13.1 53.5
Equity in undistributed earnings of subsidiaries 0.0 0.0 0.0 0.0
Net income (21.6) 24.8 13.1 53.5
Argo Group [Member]        
Premiums and other revenue:        
Earned premiums 0.0 0.0 0.0 0.0
Net investment income (0.7) (0.4) (1.4) (2.1)
Fee and other income 0.0 0.0 0.0 0.0
Net realized investment gains (losses) before income taxes 0.5 0.0 0.1 0.5
Total revenue (0.2) (0.4) (1.3) (1.6)
Expenses:        
Losses and loss adjustment expenses 0.0 0.0 0.0 0.0
Underwriting, acquisition and insurance expenses 5.8 3.8 8.2 12.2
Interest expense 1.6 1.1 2.9 1.4
Fee and other expense 0.0 0.0 0.0 0.0
Foreign currency exchange (gains) losses 0.0 0.0 0.0 0.0
Total expenses 7.4 4.9 11.1 13.6
Income before income taxes (7.6) (5.3) (12.4) (15.2)
Income tax provision 0.0 0.0 0.0 0.0
Net (loss) income before equity in earnings of subsidiaries (7.6) (5.3) (12.4) (15.2)
Equity in undistributed earnings of subsidiaries 49.4 51.3 79.0 97.9
Net income 41.8 46.0 66.6 82.7
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member]        
Premiums and other revenue:        
Earned premiums 267.0 135.5 423.9 266.4
Net investment income 19.0 29.3 41.1 48.2
Fee and other income 0.7 2.9 1.5 5.7
Net realized investment gains (losses) before income taxes 14.5 5.2 (0.9) 19.0
Total revenue 301.2 172.9 465.6 339.3
Expenses:        
Losses and loss adjustment expenses 114.4 72.5 209.8 148.6
Underwriting, acquisition and insurance expenses 95.5 58.5 165.2 116.7
Interest expense 4.5 4.2 8.8 8.5
Fee and other expense 1.1 3.2 2.5 6.6
Foreign currency exchange (gains) losses 0.1 (0.1) 0.2 0.0
Total expenses 215.6 138.3 386.5 280.4
Income before income taxes 85.6 34.6 79.1 58.9
Income tax provision 14.6 8.1 13.2 14.5
Net (loss) income before equity in earnings of subsidiaries 71.0 26.5 65.9 44.4
Equity in undistributed earnings of subsidiaries 0.0 0.0 0.0 0.0
Net income $ 71.0 $ 26.5 $ 65.9 $ 44.4
v3.10.0.1
Senior Unsecured Fixed Rate Notes - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Condensed Financial Statements, Captions [Line Items]    
Net cash flows from operating activities $ 125.9 $ 37.3
Cash flows from investing activities:    
Proceeds from sales of investments 1,025.0 958.4
Maturities and mandatory calls of fixed maturity investments 288.7 335.1
Purchases of investments (1,374.1) (1,466.0)
Change in short-term investments and foreign regulatory deposits (67.6) 300.4
Settlements of foreign currency exchange forward contracts 2.3 0.5
Cash acquired with acquisition of Ariscom 15.6  
Acquisition of Maybrooke, net of cash acquired   (105.2)
Issuance of intercompany note, net   0.0
Purchases of fixed assets and other, net (27.7) (37.7)
Cash used in investing activities (137.8) (14.5)
Cash flows from financing activities:    
Additional long-term borrowings 0.0 125.0
Borrowing under intercompany note, net   0.0
Activity under stock incentive plans 0.2 0.5
Repurchase of Company's common shares (19.4) (2.8)
Payment of cash dividends to common shareholders (18.7) (16.6)
Cash (used in) provided by financing activities (37.9) 106.1
Effect of exchange rate changes on cash (0.1) (0.4)
Change in cash (49.9) 128.5
Cash, beginning of year 176.6 [1] 86.0
Cash, end of period 126.7 214.5
Argo Group [Member]    
Condensed Financial Statements, Captions [Line Items]    
Net cash flows from operating activities 39.2 5.3
Cash flows from investing activities:    
Proceeds from sales of investments 0.0 0.0
Maturities and mandatory calls of fixed maturity investments 0.0 0.0
Purchases of investments 0.0 0.0
Change in short-term investments and foreign regulatory deposits (0.7) 0.4
Settlements of foreign currency exchange forward contracts (0.4) 0.8
Cash acquired with acquisition of Ariscom 0.0  
Acquisition of Maybrooke, net of cash acquired   (235.3)
Issuance of intercompany note, net   0.0
Purchases of fixed assets and other, net (0.1) (0.1)
Cash used in investing activities (1.2) (234.2)
Cash flows from financing activities:    
Additional long-term borrowings   125.0
Borrowing under intercompany note, net   120.0
Activity under stock incentive plans 0.2 0.5
Repurchase of Company's common shares (19.4) 0.0
Payment of cash dividends to common shareholders (18.7) (16.6)
Cash (used in) provided by financing activities (37.9) 228.9
Effect of exchange rate changes on cash 0.0 0.0
Change in cash 0.1 0.0
Cash, beginning of year 0.9 0.0
Cash, end of period 1.0 0.0
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member]    
Condensed Financial Statements, Captions [Line Items]    
Net cash flows from operating activities 48.8 (8.0)
Cash flows from investing activities:    
Proceeds from sales of investments 650.8 514.4
Maturities and mandatory calls of fixed maturity investments 226.8 240.6
Purchases of investments (937.5) (811.0)
Change in short-term investments and foreign regulatory deposits (2.8) 72.0
Settlements of foreign currency exchange forward contracts 0.2 0.0
Cash acquired with acquisition of Ariscom 0.0  
Acquisition of Maybrooke, net of cash acquired   0.0
Issuance of intercompany note, net   0.0
Purchases of fixed assets and other, net (14.8) (12.7)
Cash used in investing activities (77.3) 3.3
Cash flows from financing activities:    
Additional long-term borrowings   0.0
Borrowing under intercompany note, net   0.0
Activity under stock incentive plans 0.0 0.0
Repurchase of Company's common shares 0.0 (2.8)
Payment of cash dividends to common shareholders 0.0 0.0
Cash (used in) provided by financing activities 0.0 (2.8)
Effect of exchange rate changes on cash 0.0 0.0
Change in cash (28.5) (7.5)
Cash, beginning of year 47.8 53.7
Cash, end of period 19.3 46.2
Other Subsidiaries and Eliminations [Member]    
Condensed Financial Statements, Captions [Line Items]    
Net cash flows from operating activities 37.9 40.0
Cash flows from investing activities:    
Proceeds from sales of investments 374.2 444.0
Maturities and mandatory calls of fixed maturity investments 61.9 94.5
Purchases of investments (436.6) (655.0)
Change in short-term investments and foreign regulatory deposits (64.1) 228.0
Settlements of foreign currency exchange forward contracts 2.5 (0.3)
Cash acquired with acquisition of Ariscom 15.6  
Acquisition of Maybrooke, net of cash acquired   130.1
Issuance of intercompany note, net   (120.0)
Purchases of fixed assets and other, net (12.8) (24.9)
Cash used in investing activities (59.3) 96.4
Cash flows from financing activities:    
Additional long-term borrowings   0.0
Borrowing under intercompany note, net   0.0
Activity under stock incentive plans 0.0 0.0
Repurchase of Company's common shares 0.0 0.0
Payment of cash dividends to common shareholders 0.0 0.0
Cash (used in) provided by financing activities 0.0 0.0
Effect of exchange rate changes on cash (0.1) (0.4)
Change in cash (21.5) 136.0
Cash, beginning of year 127.9 32.3
Cash, end of period 106.4 168.3
Consolidating Adjustments [Member]    
Condensed Financial Statements, Captions [Line Items]    
Net cash flows from operating activities 0.0 0.0
Cash flows from investing activities:    
Proceeds from sales of investments 0.0 0.0
Maturities and mandatory calls of fixed maturity investments 0.0 0.0
Purchases of investments 0.0 0.0
Change in short-term investments and foreign regulatory deposits 0.0 0.0
Settlements of foreign currency exchange forward contracts 0.0 0.0
Cash acquired with acquisition of Ariscom 0.0  
Acquisition of Maybrooke, net of cash acquired   0.0
Issuance of intercompany note, net   120.0
Purchases of fixed assets and other, net 0.0 0.0
Cash used in investing activities 0.0 120.0
Cash flows from financing activities:    
Additional long-term borrowings   0.0
Borrowing under intercompany note, net   (120.0)
Activity under stock incentive plans 0.0 0.0
Repurchase of Company's common shares 0.0 0.0
Payment of cash dividends to common shareholders 0.0 0.0
Cash (used in) provided by financing activities 0.0 (120.0)
Effect of exchange rate changes on cash 0.0 0.0
Change in cash 0.0 0.0
Cash, beginning of year 0.0 0.0
Cash, end of period $ 0.0 $ 0.0
[1] Derived from audited consolidated financial statements.