Goodwill

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill is recognized in conjunction with business acquisitions as the excess of the purchase consideration for the business acquisition over the fair value of identifiable assets acquired and liabilities assumed. The fair value of identifiable assets and liabilities, and thus goodwill, is subject to redetermination within a measurement period of up to one year following completion of a business acquisition.

Goodwill is tested for impairment annually or more frequently if circumstances indicate an impairment may have occurred. The date of the Company's annual goodwill impairment test is October 1. Impairment of goodwill is tested at the reporting unit level, which is consistent with the Company's reportable segments identified in Note 16. Of the Company's five reporting units, three have goodwill - Specialty P&C, Workers' Compensation Insurance and Segregated Portfolio Cell Reinsurance.

As discussed in Note 1, during the third quarter of 2020 the Company recorded a pre-tax impairment charge of $161.1 million to fully impair the goodwill in the Specialty P&C reporting unit. The Company performed its annual goodwill impairment assessment as of October 1, 2020. Management concluded that it was not more likely than not that the fair value of each of the Company's two reporting units that have net goodwill was less than the carrying value of each reporting unit as of the testing date; therefore, no goodwill impairment was recorded during the fourth quarter of 2020.

There were no changes in the carrying amount of goodwill or accumulated impairment losses for the year ended December 31, 2019. The table below presents the carrying amount of goodwill and accumulated impairment losses by reporting unit at December 31, 2020:


	Reporting Unit
(In thousands)	Specialty P&C		Workers' Compensation Insurance		Segregated Portfolio Cell Reinsurance		Total
Goodwill, gross as of January 1, 2020	$	161,115	$	44,110	$	5,500	$	210,725
Accumulated impairment losses*	(161,115)		—		—		(161,115)
Goodwill, net as of December 31, 2020	$	—	$	44,110	$	5,500	$	49,610

*Accumulated impairment losses represents the pre-tax impairment loss of $161.1 million recognized in relation to the Specialty P&C reporting unit during the third quarter of 2020. There were no other impairment losses taken prior to 2020.