10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2015

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from                      to                     

001-34809

Commission File Number

GLOBAL INDEMNITY PLC

(Exact name of registrant as specified in its charter)

Ireland	98-0664891
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

25/28 NORTH WALL QUAY

DUBLIN 1

IRELAND

(Address of principal executive office, including zip code)

353 (0) 1 649 2000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that registrant was required to submit and post such files.).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.:

Large accelerated filer	¨;	Accelerated filer	x;
Non-accelerated filer	¨;	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of November 3, 2015, the registrant had outstanding 13,671,818 A Ordinary Shares and 12,061,370 B Ordinary Shares.

TABLE OF CONTENTS

		Page
	PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Consolidated Balance Sheets
	As of September 30, 2015 (Unaudited) and December 31, 2014		2
	Consolidated Statements of Operations
	Quarters and Nine Months Ended September 30, 2015 (Unaudited) and September 30, 2014 (Unaudited)		3
	Consolidated Statements of Comprehensive Income
	Quarters and Nine Months Ended September 30, 2015 (Unaudited) and September 30, 2014 (Unaudited)		4
	Consolidated Statements of Changes in Shareholders’ Equity
	Nine Months Ended September 30, 2015 (Unaudited) and Year Ended December 31, 2014		5
	Consolidated Statements of Cash Flows
	Nine Months Ended September 30, 2015 (Unaudited) and September 30, 2014 (Unaudited)		6
	Notes to Consolidated Financial Statements (Unaudited)		7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		41
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		74
Item 4.	Controls and Procedures		74
	PART II – OTHER INFORMATION
Item 1.	Legal Proceedings		75
Item 1A.	Risk Factors		75
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		76
Item 3.	Defaults Upon Senior Securities		76
Item 4.	Mine Safety Disclosures		76
Item 5.	Other Information		76
Item 6.	Exhibits		77
Signature			78

1

PART I – FINANCIAL INFORMATION

Item  1. Financial Statements

GLOBAL INDEMNITY PLC

Consolidated Balance Sheets

(In thousands, except share amounts)

	(Unaudited) September 30, 2015			December 31, 2014
ASSETS
Fixed maturities:
Available for sale, at fair value (amortized cost: $1,539,192 and $1,272,948)	$	1,548,885		$	1,283,475
Equity securities:
Available for sale, at fair value (cost: $99,257 and $99,297)		106,666			122,048
Other invested assets:
Available for sale, at fair value (cost: $31,137 and $33,174)		33,555			33,663
Total investments		1,689,106			1,439,186
Cash and cash equivalents		146,686			58,823
Restricted cash		—			113,696
Premiums receivable, net		95,438			56,586
Reinsurance receivables, net		134,187			125,718
Funds held by ceding insurers		24,523			25,176
Federal income taxes receivable		5,187			3,139
Deferred federal income taxes		35,809			20,250
Deferred acquisition costs		57,398			25,238
Intangible assets		26,417			17,636
Goodwill		6,936			4,820
Prepaid reinsurance premiums		39,150			4,725
Receivable for securities sold		—			60
Other assets		57,782			34,980
Total assets	$	2,318,619		$	1,930,033
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses	$	729,509		$	675,472
Unearned premiums		297,657			120,815
Ceded balances payable		4,110			2,800
Contingent commissions		14,397			12,985
Debt		292,144			174,673
Payable for securities		4,126			—
Other liabilities		54,964			34,998
Total liabilities		1,396,907			1,021,743
Commitments and contingencies (Note 11)		—			—
Shareholders’ equity:
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued: 16,748,528 and 16,331,577, respectively; A ordinary shares outstanding: 13,671,818 and 13,266,762 , respectively; B ordinary shares issued and outstanding: 12,061,370 and 12,061,370, respectively		3			3
Additional paid-in capital		529,319			519,590
Accumulated other comprehensive income, net of taxes		13,245			23,384
Retained earnings		480,882			466,717
A ordinary shares in treasury, at cost: 3,076,710 and 3,064,815 shares, respectively		(101,737	)		(101,404	)
Total shareholders’ equity		921,712			908,290
Total liabilities and shareholders’ equity	$	2,318,619		$	1,930,033

See accompanying notes to consolidated financial statements.

2

GLOBAL INDEMNITY PLC

Consolidated Statements of Operations

(In thousands, except shares and per share data)

	(Unaudited) Quarters Ended September 30,						(Unaudited) Nine Months Ended September 30,
	2015			2014			2015			2014
Revenues:
Gross premiums written	$	150,148		$	67,098		$	459,532		$	227,200
Net premiums written	$	122,497		$	63,262		$	394,606		$	212,495
Net premiums earned	$	124,707		$	68,028		$	380,921		$	201,589
Net investment income		8,852			6,527			26,234			22,488
Net realized investment gains (losses):
Other than temporary impairment losses on investments		(4,641	)		(6	)		(6,879	)		(68	)
Other net realized investment gains (losses)		(6,137	)		1,164			(337	)		40,294
Total net realized investment gains (losses)		(10,778	)		1,158			(7,216	)		40,226
Other income		1,279			126			2,408			449
Total revenues		124,060			75,839			402,347			264,752
Losses and Expenses:
Net losses and loss adjustment expenses		77,691			36,654			226,870			113,496
Acquisition costs and other underwriting expenses		50,934			27,458			150,118			81,114
Corporate and other operating expenses		3,567			3,481			19,441			9,614
Interest expense		1,595			118			2,635			628
Income (loss) before income taxes		(9,727	)		8,128			3,283			59,900
Income tax expense (benefit)		(5,981	)		(1,633	)		(10,882	)		8,108
Net income (loss)	$	(3,746	)	$	9,761		$	14,165		$	51,792
Per share data:
Net income (loss)
Basic	$	(0.15	)	$	0.39		$	0.56		$	2.06
Diluted	$	(0.15	)	$	0.39		$	0.55		$	2.05
Weighted-average number of shares outstanding
Basic		25,463,994			25,137,531			25,452,991			25,126,684
Diluted		25,704,931			25,334,716			25,684,931			25,323,187

See accompanying notes to consolidated financial statements.

3

GLOBAL INDEMNITY PLC

Consolidated Statements of Comprehensive Income

(In thousands)

	(Unaudited) Quarters Ended September 30,						(Unaudited) Nine Months Ended September 30,
	2015			2014			2015			2014
Net income (loss)	$	(3,746	)	$	9,761		$	14,165		$	51,792
Other comprehensive income (loss), net of taxes:
Unrealized holding gains (losses)		(9,078	)		(7,293	)		(9,808	)		6,476
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss)		(1	)		(1	)		(1	)		(4	)
Reclassification adjustment for (gains) losses included in net income		2,199			(1,524	)		(517	)		(35,312	)
Unrealized foreign currency translation gains (losses)		23			(229	)		187			(234	)
Other comprehensive income (loss), net of taxes		(6,857	)		(9,047	)		(10,139	)		(29,074	)
Comprehensive income (loss), net of taxes	$	(10,603	)	$	714		$	4,026		$	22,718

See accompanying notes to consolidated financial statements.

4

GLOBAL INDEMNITY PLC

Consolidated Statements of Changes in Shareholders’ Equity

(In thousands, except share amounts)

	(Unaudited) Nine Months Ended September 30, 2015			Year Ended December 31, 2014
Number of A ordinary shares issued:
Number at beginning of period		16,331,577			16,200,406
Ordinary shares issued under share incentive plans		121,812			94,563
Ordinary shares issued to directors		27,437			36,608
Ordinary shares issued in connection with American Reliable acquisition		267,702			—
Number at end of period		16,748,528			16,331,577
Number of B ordinary shares issued:
Number at beginning and end of period		12,061,370			12,061,370
Par value of A ordinary shares:
Balance at beginning and end of period	$	2		$	2
Par value of B ordinary shares:
Balance at beginning and end of period	$	1		$	1
Additional paid-in capital:
Balance at beginning of period	$	519,590		$	516,653
Share compensation plans		9,671			2,900
Tax benefit on share-based compensation expense		58			37
Balance at end of period	$	529,319		$	519,590
Accumulated other comprehensive income, net of deferred income tax:
Balance at beginning of period	$	23,384		$	54,028
Other comprehensive income (loss):
Change in unrealized holding gains (losses)		(10,319	)		(30,299	)
Change in other than temporary impairment losses recognized in other comprehensive income		(7	)		(4	)
Unrealized foreign currency translation gains (losses)		187			(341	)
Other comprehensive income (loss)		(10,139	)		(30,644	)
Balance at end of period	$	13,245		$	23,384
Retained earnings:
Balance at beginning of period	$	466,717		$	403,861
Net income		14,165			62,856
Balance at end of period	$	480,882		$	466,717
Number of Treasury Shares:
Number at beginning of period		3,064,815			3,059,371
A ordinary shares purchased		11,895			5,444
Number at end of period		3,076,710			3,064,815
Treasury Shares, at cost:
Balance at beginning of period	$	(101,404	)	$	(101,265	)
A ordinary shares purchased, at cost		(333	)		(139	)
Balance at end of period	$	(101,737	)	$	(101,404	)
Total shareholders’ equity	$	921,712		$	908,290

See accompanying notes to consolidated financial statements.

5

GLOBAL INDEMNITY PLC

Consolidated Statements of Cash Flows

(In thousands)

	(Unaudited) Nine Months Ended September 30,
	2015			2014
Cash flows from operating activities:
Net income	$	14,165		$	51,792
Adjustments to reconcile net income to net cash used for operating activities:
Amortization of value of business acquired		22,823			—
Amortization and depreciation		3,761			2,649
Amortization of debt issuance costs		16			—
Restricted stock and stock option expense		9,671			2,236
Deferred federal income taxes		(8,984	)		1,964
Amortization of bond premium and discount, net		10,557			5,701
Net realized investment gain		7,216			(40,226	)
Equity in the earnings of a partnership		(1,448	)		—
Changes in:
Premiums receivable, net		18,971			(12,323	)
Reinsurance receivables, net		5,373			19,694
Funds held by ceding insurers		661			(5,100	)
Unpaid losses and loss adjustment expenses		(35,452	)		(39,535	)
Unearned premiums		4,608			11,169
Ceded balances payable		(11,909	)		(1,027	)
Other assets and liabilities, net		(13,199	)		317
Contingent commissions		(2,909	)		(166	)
Federal income tax receivable/payable		(2,048	)		(28	)
Deferred acquisition costs, net		(32,160	)		(3,913	)
Prepaid reinsurance premiums		9,081			(265	)
Net cash used for operating activities		(1,206	)		(7,061	)
Cash flows from investing activities:
Cash release from escrow for business acquisition		113,696			—
Acquisition of business, net of cash acquired		(92,336	)		—
Proceeds from sale of fixed maturities		290,580			350,179
Proceeds from sale of equity securities		34,161			181,203
Proceeds from sale of preferred stock		1,540			—
Proceeds from maturity of fixed maturities		146,870			66,281
Proceeds from limited partnership distribution		4,287			—
Proceeds from other invested assets		—			12
Amounts paid in connection with derivatives		(7,072	)		(13,182	)
Purchases of fixed maturities		(485,153	)		(525,935	)
Purchases of equity securities		(32,434	)		(34,033	)
Purchases of other invested assets		(2,250	)		(18,475	)
Net cash provided by (used for) investing activities		(28,111	)		6,050
Cash flows from financing activities:
Net borrowings (repayments) under margin borrowing facilities		21,114			(37,726	)
Proceeds from issuance of subordinated notes		100,000			—
Debt issuance cost		(3,659	)		—
Tax benefit on share-based compensation expense		58			—
Purchase of A ordinary shares		(333	)		(139	)
Net cash provided by (used for) financing activities		117,180			(37,865	)
Net change in cash and cash equivalents		87,863			(38,876	)
Cash and cash equivalents at beginning of period		58,823			105,492
Cash and cash equivalents at end of period	$	146,686		$	66,616

See accompanying notes to consolidated financial statements.

6

GLOBAL INDEMNITY PLC

1. Principles of Consolidation and Basis of Presentation

Global Indemnity plc (“Global Indemnity” or “the Company”) was incorporated on March 9, 2010 and is domiciled in Ireland. Global Indemnity replaced the Company’s predecessor, United America Indemnity, Ltd., as the ultimate parent company as a result of a re-domestication transaction in July, 2010. The Company’s A ordinary shares are publicly traded on the NASDAQ Global Select Market under the trading symbol “GBLI.”

Starting in the 1^st quarter of 2015, the Company manages its business through three business segments: Commercial Lines, managed in Bala Cynwyd, offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs; Personal Lines, managed in Scottsdale, AZ, offers specialty personal lines and agricultural coverage; and Reinsurance Operations, managed in Bermuda, provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. The Commercial Lines and Personal Lines segments comprise the Company’s U.S. Insurance Operations. See Note 14 for additional information regarding segments.

The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and nine months ended September 30, 2015 and 2014 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2014 Annual Report on Form 10-K.

The consolidated financial statements include the accounts of Global Indemnity and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

2. Acquisition

On January 1, 2015, Global Indemnity Group, Inc., a subsidiary of the Company, acquired 100% of the voting equity interest of American Reliable Insurance Company (“American Reliable”) from American Bankers Insurance Group, Inc. by paying $113.7 million in cash and assuming $283.3 million of customary insurance related liabilities, obligations, and mandates. Per the American Reliable Stock Purchase Agreement “Stock Purchase Agreement”), the ultimate purchase price is subject to (i) accounting procedures that were performed in 2015 to determine GAAP book value and (ii) indemnification on future development on recorded loss and loss adjustment expenses as of December 31, 2014. In accordance with the Stock Purchase Agreement, on the third calendar year following the calendar year of the closing, if loss and loss adjustment expenses for accident years 2014 and prior are lower than recorded unpaid loss and loss adjustment expenses as of December 31, 2014, Global Indemnity Group, Inc. will pay the variance to American Bankers Group, Inc. Conversely, if loss and loss adjustment expenses for accident years 2014 and prior exceed recorded unpaid loss and loss adjustment expenses as of December 31, 2014, American Bankers Group, Inc. will pay the variance to Global Indemnity Group, Inc. The Company’s current estimate of the purchase price, based on available financial information, is approximately $99.8 million.

The results of American Reliable’s operations have been included in the Company’s consolidated financial statements since the date of the acquisition on January 1, 2015.

The purchase of American Reliable expanded Global Indemnity’s product offerings. American Reliable is a specialty company that distributes personal lines products written on an admitted basis that are unusual and harder to place. It complements Global Indemnity’s existing US Insurance Operations that primarily distribute commercial lines products on an excess and surplus lines basis.

American Reliable is domiciled in Arizona and as such is subject to its state insurance department regulations.

7

GLOBAL INDEMNITY PLC

For the quarter and nine months ended September 30, 2015, American Reliable had total revenues of $63.5 million and $196.1 million, respectively, and pre-tax loss of $11.2 million and $8.5 million, respectively. These amounts are included in the Company’s results of operations for the quarter and nine months ended September 30, 2015.

The following table presents the Company’s unaudited pro forma consolidated results of operations for the quarters and nine months ended September 30, 2015 and 2014 as if the acquisition had occurred on January 1, 2014 instead of January 1, 2015.

	Pro Forma
	Quarters Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands except per share data)	2015			2014		2015		2014
Total Revenue	$	124,060		$	141,902	$	402,347	$	462,164
Net Income (Loss)	$	(3,746	)	$	13,782	$	19,560	$	57,224
Net Income (Loss) per share (diluted)	$	( 0.15	)	$	0.54	$	0.76	$	2.24

The pro forma results were calculated by applying the Company’s accounting policies and adjusting the result of American Reliable to reflect (i) impact of intercompany reinsurance with Global Indemnity Reinsurance Company, Ltd. (“Global Indemnity Reinsurance”), (ii) the impact on interest expense resulting from changes to the Company’s capital structure in connection with the acquisition, (iii) impact on investment income from the acquisition date adjustments to fair value of investments, (iv) impact on underwriting expenses from the acquisition date adjustments to fair value of deferred acquisition costs and intangible assets, (v) impact of excluding transaction costs related to the acquisition and (vi) the tax effects of the above adjustments.

The pro forma results do not include any anticipated cost synergies or other effects of the integration of American Reliable. Such pro forma amounts are not indicative of the results that actually would have occurred had the acquisition been completed on January 1, 2014, nor are they indicative of the future operating results of the combined company.

The Company is still in the process of valuing the assets acquired and liabilities assumed. As a result, the allocation of the acquisition consideration is subject to change. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the date of the acquisition as of September 30, 2015 compared to June 30, 2015 along with changes in estimates made during the quarter.

	As of
(Dollars in thousands)	September 30, 2015		June 30, 2015		Change
ASSETS:
Investments	$	226,458	$	226,458	$	—
Cash and cash equivalents		21,360		21,360		—
Premiums receivables, net		25,941		25,941		—
Accounts receivable		11,311		17,129		(5,818	)
Reinsurance receivables		13,842		12,723		1,119
Prepaid reinsurance premiums		43,506		43,506		—
Intangible assets		32,000		32,000		—
Deferred federal income taxes		1,139		1,246		(107	)
Other assets		6,550		6,550		—
Total assets		382,107		386,913		(4,806	)
LIABILITIES:
Unearned premiums		172,234		172,234		—
Unpaid losses and loss adjustment expenses		89,489		88,370		1,119
Reinsurance balances payable		13,219		13,219		—
Contingent commissions		3,876		3,876		—
Other liabilities		5,608		5,685		(77	)
Total liabilities		284,426		283,384		1,042
Estimated fair value of net assets acquired		97,681		103,529		(5,848	)
Purchase price		99,797		105,843		6,046
Goodwill	$	2,116	$	2,314	$	(198	)

Pursuant to the Stock Purchase Agreement, the Company and American Bankers Group, Inc. have performed procedures to finalize the closing balance sheet for purposes of determining the purchase price. However, the Company and American Bankers Group, Inc. were unable to come to an agreement on the carrying value of unpaid loss and loss adjustment expense reserves. As a result, the Company entered into a dispute resolution with American Bankers Group, Inc. for the carried

8

GLOBAL INDEMNITY PLC

amount of unpaid loss and loss adjustment reserves as of the acquisition date. This dispute resolution is consistent with the Stock Purchase Agreement that includes indemnification to both the Company and American Bankers Group, Inc. on future development on recorded loss and loss adjustment expenses as of December 31, 2014. On the third calendar year following the acquisition date of January 1, 2015, if loss and loss adjustment expenses for accident years 2014 and prior are lower than recorded unpaid loss and loss adjustment expenses as of December 31, 2014, Global Indemnity Group, Inc. will pay the variance plus interest of 5% compounding semi-annually to American Bankers Group, Inc. Conversely, if loss and loss adjustment expenses for accident years 2014 and prior exceed recorded unpaid loss and loss adjustment expenses as of December 31, 2014, American Bankers Group, Inc. will pay the variance plus interest of 5% compounding semi-annually to Global Indemnity Group, Inc.

As a result of the structure of this dispute resolution on unpaid loss and loss adjustment expenses, American Reliable’s accounts receivable declined by $5.8 million for amounts due from American Bankers Group, Inc. and Global Indemnity Group, Inc.’s accounts receivable due from American Bankers Group, Inc. increased by $6.5 million. This consolidated net increase in accounts receivable due from American Bankers Group, Inc. of $0.7 million is related to accrued interest on the anticipated indemnification of unpaid loss and loss adjustment expense reserves.

The transaction is being accounted for using the purchase method of accounting. The assets and liabilities acquired by the Company were adjusted to estimated fair value. The $2.1 million excess of cash and acquisition cost over the estimated fair value of assets acquired was recognized as goodwill. Under the purchase method of accounting, goodwill is not amortized but is tested for impairment at least annually.

Goodwill of $2.1 million, arising from the acquisition, consists largely of the synergies and economies of scales expected from combining the operations of Global Indemnity and American Reliable. The Company has determined that the goodwill of $2.1 million will be assigned to the Personal Lines segment. There is no tax goodwill.

An identification and valuation of intangible assets was performed that resulted in the recognition of intangible assets of $32.0 million with values assigned as follows:

(Dollars in thousands) Description	Useful Life	Amount
State insurance licenses	Indefinite	$	5,000
Value of business acquired	< 1 year		25,500
Agent relationships	10 years		900
Trade name	7 - 8 years		600
		$	32,000

Intangible assets arising from the acquisition will be deductible for income tax purposes over 15 years.

The following table presents details of the Company’s intangible assets arising from the American Reliable acquisition as of September 30, 2015:

(Dollars in thousands) Description	Useful Life	Cost		Accumulated Amortization		Net Value
State insurance licenses	Indefinite	$	5,000	$	—	$	5,000
Value of business acquired	< 1 year		25,500		22,823		2,677
Agent relationships	10 years		900		67		833
Trade name	7 - 8 years		600		64		536
		$	32,000	$	22,954	$	9,046

Amortization related to the Company’s definite lived intangible assets resulting from American Reliable acquisition was $4.1 million and $23.0 million for the quarter and nine months ended September 30, 2015.

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GLOBAL INDEMNITY PLC

The Company expects that amortization expense for the next five years related to the American Reliable acquisition will be as follows:

(Dollars in thousands)
October 1, 2015 to September 30, 2016	$	2,853
October 1, 2016 to September 30, 2017		176
October 1, 2017 to September 30, 2018		176
October 1, 2018 to September 30, 2019		176
October 1, 2019 to September 30, 2020		176

The fair value, gross contractual amounts due, and contractual cash flows not expected to be collected of acquired receivables are as follows:

(Dollars in thousands)	Fair Value		Gross Contractual Amounts Due		Contractual cash flows not expected to be collected
Premium receivables	$	25,941	$	26,896	$	955
Accounts receivable		11,311		11,311		—
Reinsurance receivables		12,723		12,723		—

In connection with the acquisition, the Company agreed to pay to Fox Paine & Company, LLC (“Fox Paine”) an investment banking fee of 3% of the amount paid plus the additional capital required to operate American Reliable on a standalone basis and a $1.5 million investment advisory fee, which in the aggregate, totaled $6.5 million. This amount is included in corporate and other operating expenses on the Company’s Consolidated Statements of Operations during the nine months ended September 30, 2015. As payment for these fees, 267,702 A ordinary shares of Global Indemnity were issued under the Global Indemnity plc Share Incentive Plan in May, 2015. These shares will be registered but cannot be sold until the earlier of five years or a change of control. See Note 12 for additional information on the Global Indemnity plc Share Incentive Plan.

Additional costs, mainly professional fees, of $5.1 million were incurred in connection with the acquisition of American Reliable. Of this amount, $3.3 million was recorded as corporate and other operating expenses on the Company’s Consolidated Statements of Operations during the year ended December 31, 2014 and $1.8 million was recorded as corporate and other operating expenses on the Company’s Consolidated Statements of Operation during the nine months ended September 30, 2015.

During the nine months ended September 30, 2015, the Company paid approximately $1.6 million in employee compensation related cost, which were related to periods prior to the Acquisition. These costs were accrued by American Reliable and were included in the fair value of net assets acquired by Global Indemnity Group, Inc. on January 1, 2015.

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Geographic Concentration

The following table sets forth the geographic distribution of American Reliable’s gross premiums written, excluding business that is ceded under a 100% quota share reinsurance agreement to American Bankers Insurance Company of Florida, for the year ended December 31, 2014:

	Year Ended December 31, 2014
(Dollars in thousands)	Amount		Percent
Texas	$	32,760		12.3	%
California		25,556		9.6
North Carolina		23,040		8.7
Arizona		17,722		6.7
Louisiana		17,522		6.6
New York		13,408		5.0
Florida		12,361		4.6
Oklahoma		9,977		3.7
Georgia		8,768		3.3
New Jersey		6,925		2.6
Subtotal		168,039		63.1
All other states		98,264		36.9
Total	$	266,303		100.0	%

Marketing and Distribution

American Reliable distributes its insurance products primarily through a group of approximately 290 general and specialty agents and 332 retail agents in Arizona and New Mexico. Of the Company’s non-affiliated general and specialty agents, the top five accounted for 23.9% of American Reliable’s gross premiums written for the year ended December 31, 2014. One agency represented 6.8% of American Reliable’s gross premiums written for the year ended December 31, 2014. There is no agency which accounted for more than 10.0% of American Reliable’s revenue for the year ended December 31, 2014.

Dividend Limitations

The maximum amount of dividends, which can be paid by Arizona domiciled insurance companies without prior approval of the Insurance Commissioner, is subject to certain regulatory restrictions relating to statutory surplus. Specifically, an insurance company may pay dividends equal to the lesser of net income or 10% of its statutory surplus without specific approval from the Insurance Commissioner. At December 31, 2014, the maximum dividend, which may be distributed without approval in 2015, is zero. Dividends in excess of this amount are considered extraordinary.

Reinsurance

As a result of the acquisition, the following reinsurance treaties were entered into:

Earthquake Property Catastrophe Excess of Loss – Effective January 1, 2015, the Company purchased an earthquake property catastrophe excess of loss treaty which provides occurrence coverage for earthquake catastrophe losses of $30 million in excess of $5 million for American Reliable property business. This treaty provides for one full reinstatement of coverage at 100% additional premium as to time and pro rata as to amount of limit reinstated. This treaty was cancelled on May 31, 2015 and rolled into a new combined master catastrophe treaty which was effective June 1, 2015.

American Reliable Property Per Risk Excess of Loss – Effective January 1, 2015, American Reliable renewed its property per risk excess of loss treaty covering business underwritten by American Reliable. This treaty provides coverage in two layers: $1 million per risk in excess of $1 million per risk, and $3 million per risk in excess of $2 million per risk. The first layer is subject to a $2 million limit of liability for all risks involved in one loss occurrence, and the second layer is subject to a $6 million limit for all risks involved in one loss occurrence.

100% Ceded Quota Share to American Bankers – Effective December 1, 2014, American Reliable entered into four treaties to cede 100% of its liabilities related to certain businesses to American Bankers Insurance Company that were not included in the acquisition of American Reliable. For the quarter and nine months ended September 30, 2015, American Reliable recorded ceded written premiums of $18.7 million and $41.7 million, respectively, and ceded earned premiums of $13.3 million and $50.8 million, respectively, to American Bankers Insurance Company.

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GLOBAL INDEMNITY PLC

100% Assumed Quota Share from American Bankers – Effective December 1, 2014, American Reliable entered into two treaties to assume 100% of its liabilities from various insurers owned by Assurant, Inc. for business included in the acquisition but not written directly by American Reliable. For the quarter and nine months ended September 30, 2015, American Reliable recorded assumed written premiums of $21.4 million and $69.3 million, respectively, and assumed earned premiums of $22.8 million and $69.8 million, respectively, from insurance companies owned by Assurant, Inc.

The effect of reinsurance on premiums written and earned by American Reliable is as follows:

(Dollars in thousands)	Written		Earned
For the quarter ended September 30, 2015:
Direct business	$	65,824	$	57,825
Reinsurance assumed		21,525		22,927
Reinsurance ceded		24,047		18,620
Net premiums	$	63,302	$	62,132

(Dollars in thousands)	Written		Earned
For the nine months ended September 30, 2015:
Direct business	$	179,979	$	182,851
Reinsurance assumed		69,585		70,120
Reinsurance ceded		52,779		61,499
Net premiums	$	196,785	$	191,472

Commitments

As a result of the acquisition, the Company assumed operating leases related to the operations of American Reliable. Rental expense under these operating leases was $0.3 million and $0.8 million for the quarter and nine months ended September 30, 2015, respectively. At September 30, 2015, future minimum cash payments under non-cancelable operating leases related to the operations of American Reliable were as follows:

(Dollars in thousands)
October 1, 2015 to September 30, 2016	$	1,032
October 1, 2016 to September 30, 2017		941
October 1, 2017 to September 30, 2018		937
October 1, 2018 to September 30, 2019		143
Total	$	3,053

At the time of the acquisition, one of the Company’s policy administration systems was under development. In April, 2015, the Company entered into an agreement with an unrelated third party to build out a rate, quote, bind and issue application for the Company’s agriculture products. This project has an estimated cost of approximately $2.6 million plus reimbursable travel and related expenses.

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3. Investments

The amortized cost and estimated fair value of investments were as follows as of September 30, 2015 and December 31, 2014:

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Other than temporary impairments recognized in AOCI (1)
As of September 30, 2015
Fixed maturities:
U.S. treasury and agency obligations	$	95,312	$	1,972	$	(9	)	$	97,275	$	—
Obligations of states and political subdivisions		232,532		3,538		(670	)		235,400		—
Mortgage-backed securities		185,359		3,203		(159	)		188,403		—
Asset-backed securities		278,059		1,391		(616	)		278,834		(10	)
Commercial mortgage-backed securities		160,829		74		(827	)		160,076		—
Corporate bonds		459,840		2,526		(1,072	)		461,294		—
Foreign corporate bonds		127,261		573		(231	)		127,603		—
Total fixed maturities		1,539,192		13,277		(3,584	)		1,548,885		(10	)
Common stock		99,257		12,359		(4,950	)		106,666		—
Other invested assets		31,137		2,418		—			33,555		—
Total	$	1,669,586	$	28,054	$	(8,534	)	$	1,689,106	$	(10	)

(1) Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”).

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Other than temporary impairments recognized in AOCI (2)
As of December 31, 2014
Fixed maturities:
U.S. treasury and agency obligations	$	78,569	$	2,281	$	(83	)	$	80,767	$	—
Obligations of states and political subdivisions		188,452		3,718		(697	)		191,473		—
Mortgage-backed securities		205,814		3,709		(764	)		208,759		(4	)
Asset-backed securities		177,853		713		(303	)		178,263		(13	)
Commercial mortgage-backed securities		133,984		21		(847	)		133,158		—
Corporate bonds		380,704		3,421		(709	)		383,416		—
Foreign corporate bonds		107,572		625		(558	)		107,639		—
Total fixed maturities		1,272,948		14,488		(3,961	)		1,283,475		(17	)
Common stock		99,297		25,689		(2,938	)		122,048		—
Other invested assets		33,174		489		—			33,663		—
Total	$	1,405,419	$	40,666	$	(6,899	)	$	1,439,186	$	(17	)

(2) Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”).

Excluding U.S. treasuries and agency bonds, the Company did not hold any debt or equity investments in a single issuer that was in excess of 4% of shareholders’ equity at September 30, 2015 or December 31, 2014.

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The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at September 30, 2015, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(Dollars in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	142,231	$	143,283
Due in one year through five years		701,239		705,430
Due in five years through ten years		49,986		50,812
Due in ten years through fifteen years		3,799		4,277
Due after fifteen years		17,690		17,770
Mortgage-backed securities		185,359		188,403
Asset-backed securities		278,059		278,834
Commercial mortgage-backed securities		160,829		160,076
Total	$	1,539,192	$	1,548,885

The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of September 30, 2015:

	Less than 12 months					12 months or longer (1)					Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed maturities:
U.S. treasury and agency obligations	$	—	$	—		$	3,413	$	(9	)	$	3,413	$	(9	)
Obligations of states and political subdivisions		43,194		(573	)		9,510		(97	)		52,704		(670	)
Mortgage-backed securities		23,004		(114	)		255		(45	)		23,259		(159	)
Asset-backed securities		107,361		(588	)		4,531		(28	)		111,892		(616	)
Commercial mortgage-backed securities		110,702		(687	)		15,453		(140	)		126,155		(827	)
Corporate bonds		145,181		(1,051	)		2,974		(21	)		148,155		(1,072	)
Foreign corporate bonds		42,441		(231	)		—		—			42,441		(231	)
Total fixed maturities		471,883		(3,244	)		36,136		(340	)		508,019		(3,584	)
Common stock		38,128		(4,950	)		—		—			38,128		(4,950	)
Total	$	510,011	$	(8,194	)	$	36,136	$	(340	)	$	546,147	$	(8,534	)

(1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired.

The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2014:

	Less than 12 months					12 months or longer (1)					Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed maturities:
U.S. treasury and agency obligations	$	11,728	$	(9	)	$	3,343	$	(74	)	$	15,071	$	(83	)
Obligations of states and political subdivisions		28,684		(314	)		28,061		(383	)		56,745		(697	)
Mortgage-backed securities		2,818		(7	)		51,203		(757	)		54,021		(764	)
Asset-backed securities		92,123		(283	)		1,683		(20	)		93,806		(303	)
Commercial mortgage-backed securities		92,664		(525	)		26,280		(322	)		118,944		(847	)
Corporate bonds		144,505		(656	)		3,216		(53	)		147,721		(709	)
Foreign corporate bonds		60,518		(558	)		—		—			60,518		(558	)
Total fixed maturities		433,040		(2,352	)		113,786		(1,609	)		546,826		(3,961	)
Common stock		20,002		(2,808	)		1,577		(130	)		21,579		(2,938	)
Total	$	453,042	$	(5,160	)	$	115,363	$	(1,739	)	$	568,405	$	(6,899	)

(1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired.

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GLOBAL INDEMNITY PLC

The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each fixed maturity security in an unrealized loss position to assess whether the security is a candidate for credit loss. Specifically, the Company considers credit rating, market price, and issuer specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities for which the Company determines that a credit loss is likely are subjected to further analysis through discounted cash flow testing to estimate the credit loss to be recognized in earnings, if any. The specific methodologies and significant assumptions used by asset class are discussed below. Upon identification of such securities and periodically thereafter, a detailed review is performed to determine whether the decline is considered other than temporary. This review includes an analysis of several factors, including but not limited to, the credit ratings and cash flows of the securities and the magnitude and length of time that the fair value of such securities is below cost.

For fixed maturities, the factors considered in reaching the conclusion that a decline below cost is other than temporary include, among others, whether:

(1) the issuer is in financial distress;

(2) the investment is secured;

(3) a significant credit rating action occurred;

(4) scheduled interest payments were delayed or missed;

(5) changes in laws or regulations have affected an issuer or industry;

(6) the investment has an unrealized loss and was identified by the Company’s investment manager as an investment to be sold before recovery or maturity; and

(7) the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized.

According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met, the Company must recognize an other than temporary impairment with the entire unrealized loss being recorded through earnings. For debt securities in an unrealized loss position not meeting these conditions, the Company assesses whether the impairment of a security is other than temporary. If the impairment is deemed to be other than temporary, the Company must separate the other than temporary impairment into two components: the amount representing the credit loss and the amount related to all other factors, such as changes in interest rates. The credit loss represents the portion of the amortized book value in excess of the net present value of the projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. The credit loss component of the other than temporary impairment is recorded through earnings, whereas the amount relating to factors other than credit losses is recorded in other comprehensive income, net of taxes.

For equity securities, management carefully reviews all securities with unrealized losses to determine if a security should be impaired and further focuses on securities that have either:

(1) persisted with unrealized losses for more than twelve consecutive months or

(2) the value of the investment has been 20% or more below cost for six continuous months or more.

The amount of any write-down, including those that are deemed to be other than temporary, is included in earnings as a realized loss in the period in which the impairment arose.

The following is a description, by asset type, of the methodology and significant inputs that the Company used to measure the amount of credit loss recognized in earnings, if any:

U.S. treasury and agency obligations – As of September 30, 2015, gross unrealized losses related to U.S. treasury and agency obligations were $0.009 million. All unrealized losses have been in an unrealized loss position for twelve months or greater and are rated AA+. Macroeconomic and market analysis is conducted in evaluating these securities. The analysis is driven by moderate interest rate anticipation, yield curve management, and security selection.

Obligations of states and political subdivisions – As of September 30, 2015, gross unrealized losses related to obligations of states and political subdivisions were $0.670 million. Of this amount, $0.097 million have been in an unrealized loss position for twelve months or greater and are rated A or better. All factors that influence performance of the municipal bond

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market are considered in evaluating these securities. The aforementioned factors include investor expectations, supply and demand patterns, and current versus historical yield and spread relationships. The analysis relies on the output of fixed income credit analysts, as well as dedicated municipal bond analysts who perform extensive in-house fundamental analysis on each issuer, regardless of their rating by the major agencies.

Mortgage-backed securities (“MBS”) – As of September 30, 2015, gross unrealized losses related to mortgage-backed securities were $0.159 million. Of this amount, $0.045 million have been in an unrealized loss position for twelve months or greater and are rated CC. Mortgage-backed securities are modeled to project principal losses under downside, base, and upside scenarios for the economy and home prices. The primary assumption that drives the security and loan level modeling is the Home Price Index (“HPI”) projection. The model first projects HPI at the national level, then at the zip-code level based on the historical relationship between the individual zip code HPI and the national HPI. The model utilizes loan level data and borrower characteristics including FICO score, geographic location, original and current loan size, loan age, mortgage rate and type (fixed rate / interest-only / adjustable rate mortgage), issuer / originator, residential type (owner occupied / investor property), dwelling type (single family / multi-family), loan purpose, level of documentation, and delinquency status as inputs. The model also includes the explicit treatment of silent second liens, utilization of loan modification history, and the application of roll rate adjustments.

Asset-backed securities (“ABS”) – As of September 30, 2015, gross unrealized losses related to asset backed securities were $0.616 million. Of this amount, $0.028 million has been in an unrealized loss position for 12 months or greater and are rated AAA. The weighted average credit enhancement for the Company’s asset backed portfolio is 21.9. This represents the percentage of pool losses that can occur before an asset backed security will incur its first dollar of principal losses. Every ABS transaction is analyzed on a stand-alone basis. This analysis involves a thorough review of the collateral, prepayment, and structural risk in each transaction. Additionally, the analysis includes an in-depth credit analysis of the originator and servicer of the collateral. The analysis projects an expected loss for a deal given a set of assumptions specific to the asset type. These assumptions are used to calculate at what level of losses the deal will incur its first dollar of principal loss. The major assumptions used to calculate this ratio are loss severities, recovery lags, and no advances on principal and interest.

Commercial mortgage-backed securities (“CMBS”) – As of September 30, 2015, gross unrealized losses related to the CMBS portfolio were $0.827 million. Of this amount, $0.140 million have been in an unrealized loss position for twelve months or greater, of which, 81.0% are rated AA- or better. The weighted average credit enhancement for the Company’s CMBS portfolio is 35.7. This represents the percentage of pool losses that can occur before a mortgage-backed security will incur its first dollar of principal loss. For the Company’s CMBS portfolio, a loan level analysis is utilized where every underlying CMBS loan is re-underwritten based on a set of assumptions reflecting expectations for the future path of the economy. In the analysis, the focus is centered on stressing the significant variables that influence commercial loan defaults and collateral losses in CMBS deals. These variables include: (1) a projected drop in occupancies; (2) capitalization rates that vary by property type and are forecasted to return to more normalized levels as the capital markets repair and capital begins to flow again; and (3) property value stress testing using projected property performance and projected capitalization rates. Term risk is triggered if the projected debt service coverage rate falls below 1x. Balloon risk is triggered if a property’s projected performance does not satisfy new tighter mortgage standards.

Corporate bonds – As of September 30, 2015, gross unrealized losses related to corporate bonds were $1.072 million. Of this amount, $0.021 million have been in an unrealized loss position for twelve months or greater and are rated BBB or better. The analysis for this sector includes maintaining detailed financial models that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default.

Foreign bonds – As of September 30, 2015, gross unrealized losses related to foreign bonds were $0.231 million. All unrealized losses have been in an unrealized loss position for less than twelve months. For this sector, detailed financial models are maintained that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default.

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Common stock – As of September 30, 2015, gross unrealized losses related to common stock were $4.950 million. All unrealized losses have been in an unrealized loss position for less than 12 months. To determine if an other than temporary impairment of an equity security has occurred, the Company considers, among other things, the severity and duration of the decline in fair value of the equity security. The Company also examines other factors to determine if the equity security could recover its value in a reasonable period of time.

The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the quarters and nine months ended September 30, 2015 and 2014:

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Fixed maturities:
OTTI losses, gross	$	—		$	(6	)	$	(23	)	$	(31	)
Portion of loss recognized in other comprehensive income (pre-tax)		—			—			—			—
Net impairment losses on fixed maturities recognized in earnings		—			(6	)		(23	)		(31	)
Equity securities		(4,641	)		—			(6,856	)		(37	)
Total	$	(4,641	)	$	(6	)	$	(6,879	)	$	(68	)

The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company for the quarters and nine months ended September 30, 2015 and 2014 for which a portion of the OTTI loss was recognized in other comprehensive income.

	Quarters Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2015		2014		2015			2014
Balance at beginning of period	$	31	$	50	$	50		$	54
Additions where no OTTI was previously recorded		—		—		—			—
Additions where an OTTI was previously recorded		—		—		—			—
Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery		—		—		—			—
Reductions reflecting increases in expected cash flows to be collected		—		—		—			—
Reductions for securities sold during the period		—		—		(19	)		(4	)
Balance at end of period	$	31	$	50	$	31		$	50

Accumulated Other Comprehensive Income, Net of Tax

Accumulated other comprehensive income, net of tax, as of September 30, 2015 and December 31, 2014 was as follows:

(Dollars in thousands)	September 30, 2015			December 31, 2014
Net unrealized gains from:
Fixed maturities	$	9,693		$	10,527
Common stock		7,409			22,751
Other		970			369
Deferred taxes		(4,827	)		(10,263	)
Accumulated other comprehensive income, net of tax	$	13,245		$	23,384

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The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the quarters and nine months ended September 30, 2015 and 2014:

Quarter Ended September 30, 2015 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities, Net of Tax			Foreign Currency Items, Net of Tax			Accumulated Other Comprehensive Income, Net of Tax
Beginning balance	$	20,201		$	(99)		$	20,102
Other comprehensive income (loss) before reclassification		(9,009	)		(47	)		(9,056	)
Amounts reclassified from accumulated other comprehensive income (loss)		2,129			70			2,199
Other comprehensive income (loss)		(6,880	)		23			(6,857	)
Ending balance	$	13,321		$	(76	)	$	13,245

Quarter Ended September 30, 2014 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities, Net of Tax			Foreign Currency Items, Net of Tax			Accumulated Other Comprehensive Income, Net of Tax
Beginning balance	$	33,928		$	73		$	34,001
Other comprehensive income (loss) before reclassification		(7,295	)		(228	)		(7,523	)
Amounts reclassified from accumulated other comprehensive income (loss)		(1,523	)		(1	)		(1,524	)
Other comprehensive income (loss)		(8,818	)		(229	)		(9,047	)
Ending balance	$	25,110		$	(156	)	$	24,954

Nine Months Ended September 30, 2015 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities, Net of Tax			Foreign Currency Items, Net of Tax			Accumulated Other Comprehensive Income, Net of Tax
Beginning balance	$	23,647		$	(263)		$	23,384
Other comprehensive income (loss) before reclassification		(9,413	)		(209	)		(9,622	)
Amounts reclassified from accumulated other comprehensive income (loss)		(913	)		396			(517	)
Other comprehensive income (loss)		(10,326	)		187			(10,139	)
Ending balance	$	13,321		$	(76	)	$	13,245

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GLOBAL INDEMNITY PLC

Nine Months Ended September 30, 2014 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities, Net of Tax			Foreign Currency Items, Net of Tax			Accumulated Other Comprehensive Income, Net of Tax
Beginning balance	$	53,950		$	78		$	54,028
Other comprehensive income (loss) before reclassification		6,396			(158	)		6,238
Amounts reclassified from accumulated other comprehensive income (loss)		(35,236	)		(76	)		(35,312	)
Other comprehensive income (loss)		(28,840	)		(234	)		(29,074	)
Ending balance	$	25,110		$	(156	)	$	24,954

The reclassifications out of accumulated other comprehensive income for the quarters and nine months ended September 30, 2015 and 2014 were as follows:

		Amounts Reclassified from Accumulated Other Comprehensive Income
		Quarters Ended September 30,
(Dollars in thousands) Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Consolidated Statements of Operations	2015			2014
Unrealized gains and losses on available for sale securities	Other net realized investment (gains)	$	(2,042	)	$	(2,355	)
	Other than temporary impairment losses on investments		4,641			6
	Total before tax		2,599			(2,349	)
	Income tax expense (benefit)		(470	)		826
	Net of tax	$	2,129		$	(1,523	)
Foreign Currency Items	Other net realized investment (gains) losses	$	108		$	(1	)
	Income tax (benefit)		(38	)		—
	Net of tax	$	70		$	(1	)
Total reclassifications	Net of tax	$	2,199		$	(1,524	)

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GLOBAL INDEMNITY PLC

		Amounts Reclassified from Accumulated Other Comprehensive Income
		Nine Months Ended September 30,
(Dollars in thousands) Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Consolidated Statements of Operations	2015			2014
Unrealized gains and losses on available for sale securities	Other net realized investment (gains)	$	(9,168	)	$	(53,729	)
	Other than temporary impairment losses on investments		6,879			68
	Total before tax		(2,289	)		(53,661	)
	Income tax expense		1,376			18,425
	Net of tax	$	(913	)	$	(35,236	)
Foreign Currency Items	Other net realized investment (gains) losses	$	609		$	(117	)
	Income tax expense (benefit)		(213	)		41
	Net of tax	$	396		$	(76	)
Total reclassifications	Net of tax	$	(517	)	$	(35,312	)

Net Realized Investment Gains (Losses)

Net realized gains and losses on investments are determined based on the specific identification method.

The components of net realized investment gains (losses) for the quarters and nine months ended September 30, 2015 and 2014 were as follows:

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Fixed maturities:
Gross realized gains	$	110		$	262		$	1,589		$	2,651
Gross realized losses		(1,451	)		(471	)		(1,692	)		(697	)
Net realized gains/ (losses)		(1,341	)		(209	)		(103	)		1,954
Common stock:
Gross realized gains		3,494			2,559			9,418			52,434
Gross realized losses		(4,860	)		—			(7,731	)		(610	)
Net realized gains/ (losses)		(1,366	)		2,559			1,687			51,824
Preferred stock:
Gross realized gains		—			—			96			—
Gross realized losses		—			—			—			—
Net realized gains		—			—			96			—
Derivatives:
Gross realized gains		—			147			—			—
Gross realized losses		(8,071	)		(1,339	)		(8,896	)		(13,552	)
Net realized (losses)		(8,071	)		(1,192	)		(8,896	)		(13,552	)
Total net realized investment gains/ (losses)	$	(10,778	)	$	1,158		$	(7,216	)	$	40,226

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GLOBAL INDEMNITY PLC

The proceeds from sales of available-for-sale securities resulting in net realized investment gains (losses) for the nine months ended September 30, 2015 and 2014 were as follows:

	Nine Months Ended September 30,
(Dollars in thousands)	2015		2014
Fixed maturities	$	290,580	$	350,179
Equity securities		34,161		181,203
Preferred stock		1,540		—

Net Investment Income

The sources of net investment income for the quarters and nine months ended September 30, 2015 and 2014 were as follows:

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Fixed maturities	$	8,673		$	6,791		$	24,709		$	20,843
Equity securities		703			780			2,419			4,861
Cash and cash equivalents		32			14			59			42
Other invested assets		193			—			1,535			87
Total investment income		9,601			7,585			28,722			25,833
Investment expense		(749	)		(1,058	)		(2,488	)		(3,345	)
Net investment income	$	8,852		$	6,527		$	26,234		$	22,488

The Company’s total investment return on a pre-tax basis for the quarters and nine months ended September 30, 2015 and 2014 were as follows:

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Net investment income	$	8,852		$	6,527		$	26,234		$	22,488
Net realized investment gains (losses)		(10,778	)		1,158			(7,216	)		40,226
Change in unrealized holding gains and losses		(10,420	)		(11,876	)		(15,575	)		(43,650	)
Net realized and unrealized investment returns		(21,198	)		(10,718	)		(22,791	)		(3,424	)
Total investment return	$	(12,346	)	$	(4,191	)	$	3,443		$	19,064
Total investment return % (1)		(0.7	%)		(0.3	%)		0.2	%		1.2	%
Average investment portfolio (2)	$	1,800,993		$	1,558,501		$	1,788,777		$	1,541,336

(1) Not annualized.

(2) Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period.

Insurance Enhanced Asset Backed and Credit Securities

As of September 30, 2015, the Company held insurance enhanced asset backed and credit securities with a market value of approximately $45.5 million. Approximately $19.0 million of these securities were tax free municipal bonds, which represented approximately 1.0% of the Company’s total cash and invested assets, net of payable/receivable for securities purchased and sold. These securities had an average rating of “A+.” Approximately $8.3 million of these bonds are pre-refunded with U.S. treasury securities, of which $0.1 million are backed by financial guarantors, meaning that funds have been set aside in escrow to satisfy the future interest and principal obligations of the bond. Of the remaining $10.7 million of insurance enhanced municipal bonds, $0.5 million would have carried a lower credit rating had they not been insured.

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The following table provides a breakdown of the ratings for these municipal bonds with and without insurance.

(Dollars in thousands)	Ratings with		Ratings without
Rating	Insurance		Insurance
AA	$	511	$	—
BB		—		511
Total	$	511	$	511

A summary of the Company’s insurance enhanced municipal bonds that are backed by financial guarantors, including the pre-refunded bonds that are escrowed in U.S. government obligations, as of September 30, 2015, is as follows:

(Dollars in thousands) Financial Guarantor	Total		Pre-refunded Securities		Government Guaranteed Securities		Exposure Net of Pre-refunded & Government Guaranteed Securities
Ambac Financial Group	$	1,686	$	136	$	—	$	1,550
Assured Guaranty Corporation		3,661		—		—		3,661
Municipal Bond Insurance Association		4,920		—		—		4,920
Gov’t National Housing Association		553		—		553		—
Total backed by financial guarantors		10,820		136		553		10,131
Other credit enhanced municipal bonds		8,185		8,185		—		—
Total	$	19,005	$	8,321	$	553	$	10,131

In addition to the tax-free municipal bonds, the Company held $26.5 million of insurance enhanced asset-backed and taxable municipal bonds, which represented approximately 1.4% of the Company’s total invested assets, net of receivable/payable for securities purchased and sold. The financial guarantors of the Company’s $26.5 million of insurance enhanced asset-backed and taxable municipal securities include Municipal Bond Insurance Association ($8.4 million), Ambac Financial Group ($1.4 million), Assured Guaranty Corporation ($14.5 million), Financial Guaranty Insurance Group ($0.2 million) and Build America Mutual ($2.0 million).

The Company had no direct investments in the entities that have provided financial guarantees or other credit support to any security held by the Company at September 30, 2015.

Bonds Held on Deposit

Certain cash balances, cash equivalents, equity securities and bonds available for sale were deposited with various governmental authorities in accordance with statutory requirements, were held as collateral pursuant to borrowing arrangements, or were held in trust pursuant to intercompany reinsurance agreements. The fair values were as follows as of September 30, 2015 and December 31, 2014:

	Estimated Fair Value
(Dollars in thousands)	September 30, 2015		December 31, 2014
On deposit with governmental authorities	$	39,763	$	32,790
Intercompany trusts held for the benefit of U.S. policyholders		555,859		495,301
Held in trust pursuant to third party requirements		69,153		95,828
Letter of credit held for third party requirements		6,112		9,340
Securities held as collateral for borrowing arrangements (1)		248,486		222,809
Total	$	919,373	$	856,068

(1) Amount required to collateralize margin borrowing facilities.

4. Derivative Instruments

Interest rate swaps are used by the Company primarily to reduce risks from changes in interest rates. Under the terms of the interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount.

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GLOBAL INDEMNITY PLC

The Company accounts for the interest rate swaps as non-hedge instruments and recognizes the fair value of the interest rate swaps in other assets or other liabilities on the consolidated balance sheets with the changes in fair value recognized as net realized investment gains (losses) in the consolidated statement of operations. The estimated fair value of the interest rate swaps, which is primarily derived from the forward interest rate curve, is based on the valuation received from a third party financial institution.

The following table summarizes information on the location and the gross amount of the derivatives’ fair value on the consolidated balance sheets as of September 30, 2015 and December 31, 2014:

(Dollars in thousands)			September 30, 2015					December 31, 2014
Derivatives Not Designated as Hedging Instruments under ASC 815	Balance Sheet Location		Notional Amount		Fair Value			Notional Amount		Fair Value
Interest rate swap agreements		Other liabilities	$	200,000	$	(18,522	)	$	200,000	$	(13,675	)

The following table summarizes the net gains and losses included in the consolidated statement of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the quarters and nine months ended September 30, 2015 and 2014:

		Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	Statement of Operations Line	2015			2014			2015			2014
Interest rate swap agreements	Net realized investment gain(losses)	$	(8,071	)	$	(1,192	)	$	(8,896	)	$	(13,552	)

As of September 30, 2015, the Company is due receivables of $4.8 million for collateral posted and $18.8 million for margin calls made in connection with the interest rate swaps. These amounts are included in other assets on the consolidated balance sheets.

5. Fair Value Measurements

The accounting standards related to fair value measurements define fair value, establish a framework for measuring fair value, outline a fair value hierarchy based on inputs used to measure fair value, and enhance disclosure requirements for fair value measurements. These standards do not change existing guidance as to whether or not an instrument is carried at fair value. The Company has determined that its fair value measurements are in accordance with the requirements of these accounting standards.

The Company’s invested assets and derivative instruments are carried at their fair value and are categorized based upon a fair value hierarchy:

• Level 1—inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date.

• Level 2—inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly.

• Level 3—inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset.

Both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the Level 3 category. As a result, the unrealized gains and losses for invested assets within the Level 3 category presented in the tables below may include changes in fair value that are attributed to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs.

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GLOBAL INDEMNITY PLC

The following table presents information about the Company’s invested assets and derivative instruments measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.

As of September 30, 2015	Fair Value Measurements
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasury and agency obligations	$	91,341	$	5,934	$	—	$	97,275
Obligations of states and political subdivisions		—		235,400		—		235,400
Mortgage-backed securities		—		188,403		—		188,403
Commercial mortgage-backed securities		—		160,076		—		160,076
Asset-backed securities		—		278,834		—		278,834
Corporate bonds		—		461,294		—		461,294
Foreign corporate bonds		—		127,603		—		127,603
Total fixed maturities		91,341		1,457,544		—		1,548,885
Common stock		106,666		—		—		106,666
Other invested assets		—		—		33,555		33,555
Total assets measured at fair value	$	198,007	$	1,457,544	$	33,555	$	1,689,106
Liabilities:
Derivative instruments	$	—	$	18,522	$	—	$	18,522
Total liabilities measured at fair value	$	—	$	18,522	$	—	$	18,522

As of December 31, 2014	Fair Value Measurements
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasury and agency obligations	$	74,765	$	6,002	$	—	$	80,767
Obligations of states and political subdivisions		—		191,473		—		191,473
Mortgage-backed securities		—		208,759		—		208,759
Commercial mortgage-backed securities		—		133,158		—		133,158
Asset-backed securities		—		178,263		—		178,263
Corporate bonds		—		383,416		—		383,416
Foreign corporate bonds		—		107,639		—		107,639
Total fixed maturities		74,765		1,208,710		—		1,283,475
Common stock		122,048		—		—		122,048
Other invested assets		—		—		33,663		33,663
Total assets measured at fair value	$	196,813	$	1,208,710	$	33,663	$	1,439,186
Liabilities:
Derivative instruments	$	—	$	13,675	$	—	$	13,675
Total liabilities measured at fair value	$	—	$	13,675	$	—	$	13,675

The securities classified as Level 1 in the above table consist of U.S. Treasuries and equity securities actively traded on an exchange.

The securities classified as Level 2 in the above table consist primarily of fixed maturity securities and derivative instruments. Based on the typical trading volumes and the lack of quoted market prices for fixed maturities, security prices are derived through recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information. If there are no recent reported trades, matrix or model processes are used to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Included in the pricing of asset-backed securities, collateralized mortgage obligations, and mortgage-backed securities are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment speeds previously experienced at the interest rate levels projected for the underlying collateral. The estimated fair value of the interest rate swaps is obtained from a third party financial institution who utilizes observable inputs such as the forward interest rate curve.

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GLOBAL INDEMNITY PLC

For the Company’s material debt arrangements, the current fair value of the Company’s debt was as follows:

(Dollars in thousands)	Carrying Value		Fair Value
Margin Borrowing Facilities	$	195,787	$	195,787
7.75% Subordinated Notes due 2045 (1)		96,357		90,117
Total	$	292,144	$	285,904

(1) As of September 30, 2015, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.6 million.

The fair value of the margin borrowing facilities approximates its carrying value due to the facilities being due on demand. The 7.75% subordinated notes due 2045 are publicly traded instruments and are classified as Level 1 in the fair value hierarchy.

There were no transfers between Level 1 and Level 2 during the quarters and nine months ended September 30, 2015 or 2014.

The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the quarters and nine months ended September 30, 2015 and 2014:

	Quarters Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands)	2015		2014			2015			2014
Beginning balance	$	31,176	$	15,034		$	33,663		$	3,489
Total gains (losses) (realized / unrealized):
Included in accumulated other comprehensive income (loss)		23		(404	)		481			(834	)
Investment Income:
Equity in Limited Partnership		106		—			1,448			—
Purchases		2,250		6,500			2,250			18,475
Distributions		—		(12	)		(4,287	)		(12	)
Ending balance	$	33,555	$	21,118		$	33,555		$	21,118

The investments classified as Level 3 in the above table relate to investments in limited partnerships. The Company does not have access to daily valuations; therefore, the estimated fair values of the limited partnerships are measured utilizing net asset value, typically on a quarter lag, as a practical expedient for the limited partnerships.

The Company uses the equity method to account for an investment in a limited partnership where its ownership interest exceeds 3%. The equity method of accounting for an investment in a limited partnership requires changes in fair market value to be reflected in the income statement. The Company records the changes in fair market value for investments in limited partnerships accounted for under the equity method to investment income. The change in fair market value included in investment income for this limited partnership was $0.1 million during the quarter ended September 30, 2015 and $1.4 million during the year ended September 30, 2015.

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GLOBAL INDEMNITY PLC

Fair Value of Alternative Investments

Included in “Other invested assets” in the fair value hierarchy at September 30, 2015 and December 31, 2014 are limited liability partnerships measured at fair value. The following table provides the fair value and future funding commitments related to these investments at September 30, 2015 and December 31, 2014.

	September 30, 2015				December 31, 2014
(Dollars in thousands)	Fair Value		Future Funding Commitment		Fair Value		Future Funding Commitment
Equity Fund, LP (1)	$	3,348	$	2,391	$	3,401	$	2,436
Real Estate Fund, LP (2)		—		—		—		—
European Non-Performing Loan Fund, LP (3)		30,207		21,314		30,262		20,064
Total	$	33,555	$	23,705	$	33,663	$	22,500

(1) This limited partnership invests in companies from various business sectors whereby the partnership has acquired control of the operating business as a lead or organizing investor. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company anticipates its interest in this partnership to be redeemed during the 4^th quarter of 2015.

(2) This limited partnership invests in real estate assets through a combination of direct or indirect investments in partnerships, limited liability companies, mortgage loans, and lines of credit. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company continues to hold an investment in this limited partnership and has written the fair value down to zero.

(3) This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. Based on the terms of the partnership agreement, the Company anticipates its interest in this partnership to be redeemed in 2020.

Pricing

The Company’s pricing vendors provide prices for all investment categories except for investments in limited partnerships which are measured utilizing net asset values as a practical expedient. Two vendors provide prices for equity and fixed maturity securities.

The following is a description of the valuation methodologies used by the Company’s pricing vendors for investment securities carried at fair value:

• Equity prices are received from all primary and secondary exchanges.

• Corporate and agency bonds are evaluated by utilizing a multi-dimensional relational model. For bonds with early redemption options, an option adjusted spread model is utilized. Both asset classes use standard inputs and incorporate security set up, defined sector breakdown, benchmark yields, apply base spreads, yield to maturity, and adjust for corporate actions.

• Data from commercial vendors is aggregated with market information, then converted into a prepayment/spread/LIBOR curve model used for commercial mortgage obligations (“CMO”). CMOs are categorized with mortgage-backed securities in the tables listed above. For ABS’s, data derived from market information along with trustee and servicer reports is converted into spreads to interpolated swap yield curve. For both asset classes, evaluations utilize standard inputs plus new issue data, monthly payment information, and collateral performance. The evaluated pricing models incorporate discount rates, loan level information, prepayment speeds, treasury benchmarks, and LIBOR and swap curves.

• For municipals, a multi-dimensional relational model is used to evaluate securities within this asset class. The evaluated pricing models for this asset class incorporate security set-up, benchmark yields, apply base spreads, yield to worst or market convention, ratings updates, prepayment schedules and adjustments for material events notices.

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GLOBAL INDEMNITY PLC

• U.S. treasuries are evaluated by obtaining feeds from a number of live data sources including active market makers and inter-dealer brokers.

• For MBSs, a matrix model correlation to TBA (a forward MBS trade) or benchmarking is utilized to value a security.

The Company performs certain procedures to validate whether the pricing information received from the pricing vendor is reasonable, to ensure that the fair value determination is consistent with accounting guidance, and to ensure that its assets are properly classified in the fair value hierarchy. The Company’s procedures include, but are not limited to:

• Reviewing periodic reports provided by the Investment Manager that provide information regarding rating changes and securities placed on watch. This procedure allows the Company to understand why a particular security’s market value may have changed.

• Understanding and periodically evaluating the various pricing methods and procedures used by the Company’s pricing vendor to ensure that investments are properly classified within the fair value hierarchy.

• On a quarterly basis, the Company corroborates investment security prices received from its pricing vendor by obtaining pricing from a second pricing vendor for a sample of securities.

During the quarters and nine months ended September 30, 2015 and 2014, the Company has not adjusted quotes or prices obtained from the pricing vendor.

6. Income Taxes

The statutory income tax rates of the countries where the Company does business are 35% in the United States, 0% in Bermuda, 0% in the Cayman Islands, 0% in Gibraltar, 29.22% in the Duchy of Luxembourg, and 25% on non-trading income, 33% on capital gains and 12.5% on trading income in the Republic of Ireland. The statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense. Generally, during interim periods, the Company will divide total estimated annual income tax expense by total estimated annual pre-tax income to determine the expected annual income tax rate used to compute the income tax provision. The expected annual income tax rate is then applied against interim pre-tax income, excluding net realized gains and losses and limited partnership distributions, and that amount is then added to the actual income taxes on net realized gains and losses, discrete items and limited partnership distributions. However, when there is significant volatility in the expected effective tax rate, the Company records its actual income tax provision in lieu of the estimated effective income tax rate. In 2015, the Company recorded its income tax provision using a discrete period computation because a reliable estimate of an effective tax rate could not be made.

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GLOBAL INDEMNITY PLC

The Company’s income before income taxes from its non-U.S. subsidiaries and U.S. subsidiaries, including the results of the quota share and stop-loss agreements between Global Indemnity Reinsurance and the Insurance Operations, for the quarters and nine months ended September 30, 2015 and 2014 were as follows:

Quarter Ended September 30, 2015: (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries			Eliminations			Total
Revenues:
Gross premiums written	$	67,543		$	140,268		$	(57,663	)	$	150,148
Net premiums written	$	67,534		$	54,963		$	—		$	122,497
Net premiums earned	$	70,532		$	54,175		$	—		$	124,707
Net investment income		10,644			4,783			(6,575	)		8,852
Net realized investment losses		(1,256	)		(9,522	)		—			(10,778	)
Other income		(11	)		1,290			—			1,279
Total revenues		79,909			50,726			(6,575	)		124,060
Losses and Expenses:
Net losses and loss adjustment expenses		39,849			37,842			—			77,691
Acquisition costs and other underwriting expenses		30,504			20,430			—			50,934
Corporate and other operating expenses		1,648			1,919			—			3,567
Interest expense		1,501			6,669			(6,575	)		1,595
Income (loss) before income taxes	$	6,407		$	(16,134	)	$	—		$	(9,727	)

Quarter Ended September 30, 2014: (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries			Eliminations			Total
Revenues:
Gross premiums written	$	38,387		$	56,491		$	(27,780	)	$	67,098
Net premiums written	$	38,366		$	24,896		$	—		$	63,262
Net premiums earned	$	43,238		$	24,790		$	—		$	68,028
Net investment income		7,713			3,655			(4,841	)		6,527
Net realized investment gains (losses)		(10	)		1,168			—			1,158
Other income (loss)		(38	)		164			—			126
Total revenues		50,903			29,777			(4,841	)		75,839
Losses and Expenses:
Net losses and loss adjustment expenses		18,939			17,715			—			36,654
Acquisition costs and other underwriting expenses		17,762			9,696			—			27,458
Corporate and other operating expenses		1,156			2,325			—			3,481
Interest expense		193			4,766			(4,841	)		118
Income before income taxes	$	12,853		$	(4,725	)	$	—		$	8,128

Nine Months Ended September 30, 2015: (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries			Eliminations			Total
Revenues:
Gross premiums written	$	289,940		$	411,310		$	(241,718	)	$	459,532
Net premiums written	$	289,892		$	104,714		$	—		$	394,606
Net premiums earned	$	214,667		$	166,254		$	—		$	380,921
Net investment income		32,146			13,594			(19,506	)		26,234
Net realized investment losses		(1,643	)		(5,573	)		—			(7,216	)
Other income (loss)		(77	)		2,485			—			2,408
Total revenues		245,093			176,760			(19,506	)		402,347
Losses and Expenses:
Net losses and loss adjustment expenses		115,654			111,216			—			226,870
Acquisition costs and other underwriting expenses		92,368			57,750			—			150,118
Corporate and other operating expenses		3,395			16,046			—			19,441
Interest expense		2,325			19,816			(19,506	)		2,635
Income (loss) before income taxes	$	31,351		$	(28,068	)	$	—		$	3,283

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GLOBAL INDEMNITY PLC

Nine Months Ended September 30, 2014: (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries		Eliminations			Total
Revenues:
Gross premiums written	$	139,714		$	170,038	$	(82,552	)	$	227,200
Net premiums written	$	138,677		$	73,818	$	—		$	212,495
Net premiums earned	$	126,551		$	75,038	$	—		$	201,589
Net investment income		22,947			13,980		(14,439	)		22,488
Net realized investment gains		1,017			39,209		—			40,226
Other income (loss)		(41	)		490		—			449
Total revenues		150,474			128,717		(14,439	)		264,752
Losses and Expenses:
Net losses and loss adjustment expenses		51,818			61,678		—			113,496
Acquisition costs and other underwriting expenses		52,637			28,477		—			81,114
Corporate and other operating expenses		4,034			5,580		—			9,614
Interest expense		647			14,420		(14,439	)		628
Income before income taxes	$	41,338		$	18,562	$	—		$	59,900

The following table summarizes the components of income tax expense (benefit):

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Current income tax expense:
Foreign	$	67		$	39		$	228		$	164
U.S. Federal		(579	)		(1,571	)		(2,126	)		5,980
Total current income tax expense (benefit)		(512	)		(1,532	)		(1,898	)		6,144
Deferred income tax expense (benefit):
U.S. Federal		(5,469	)		(101	)		(8,984	)		1,964
Total deferred income tax expense (benefit)		(5,469	)		(101	)		(8,984	)		1,964
Total income tax expense (benefit)	$	(5,981	)	$	(1,633	)	$	(10,882	)	$	8,108

The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate:

	Quarters Ended September 30,
	2015						2014
(Dollars in thousands)	Amount			% of Pre- Tax Income			Amount			% of Pre- Tax Income
Expected tax provision at weighted average rate	$	(5,580	)		(57.4	%)	$	(1,614	)		(19.9	%)
Adjustments:
Tax exempt interest		(107	)		(1.1	)		(120	)		(1.5	)
Dividend exclusion		(175	)		(1.8	)		(229	)		(2.8	)
Effective tax rate adjustment		—			0.0			288			3.5
Other		(119	)		(1.2	)		42			0.6
Actual tax on continuing operations	$	(5,981	)		(61.5	%)	$	(1,633	)		(20.1	%)

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GLOBAL INDEMNITY PLC

The effective income tax benefit rate for the quarter ended September 30, 2015 was 61.5%, compared to an effective income tax benefit rate of 20.1%, for the quarter ended September 30, 2014. The increase in the effective tax benefit rate is primarily due to capital losses in the quarter ended September 30, 2015. Taxes were computed using a discrete period computation because a reliable estimate of an effective tax rate could not be made.

	Nine Months Ended September 30,
	2015						2014
(Dollars in thousands)	Amount			% of Pre- Tax Income			Amount			% of Pre- Tax Income
Expected tax provision at weighted average rate	$	(9,595	)		(292.3	%)	$	6,649			11.1	%
Adjustments:
Tax exempt interest		(326	)		(9.9	)		(490	)		(0.8	)
Dividend exclusion		(588	)		(17.9	)		(1,186	)		(2.0	)
Effective tax rate adjustment		—			0.0			2,600			4.3
Other		(373	)		(11.4	)		535			0.9
Actual tax on continuing operations	$	(10,882	)		(331.5	%)	$	8,108			13.5	%

The effective income tax benefit rate for the nine months ended September 30, 2015 was 331.5%, compared to an effective income tax expense rate of 13.5% for the nine months ended September 30, 2014. The decrease in the effective tax rate is primarily due to expenses related to the acquisition of American Reliable Insurance Company in 2015 and large capital gains in 2014. Taxes were computed using a discrete period computation because a reliable estimate of an effective tax rate could not be made.

The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at September 30, 2015 and December 31, 2014 are presented below:

(Dollars in thousands)	September 30, 2015		December 31, 2014
Deferred tax assets:
Discounted unpaid losses and loss adjustment expenses	$	8,739	$	7,492
Unearned premiums		8,117		3,409
Alternative minimum tax credit carryover		10,587		10,473
Net operating loss carryforward		6,264		—
Partnership K1 basis differences		245		145
Capital gain on derivative instruments		6,483		4,786
Investment impairments		2,709		379
Stock options		2,578		2,048
Deferred acquisition costs		149		187
Stat-to-GAAP reinsurance reserve		1,364		1,424
Intercompany transfers		1,738		1,919
Depreciation and amortization		93		—
Other		4,115		3,050
Total deferred tax assets		53,181		35,312
Deferred tax liabilities:
PGAAP adjustment for American Reliable		6,095		—
Intangible assets		4,615		3,220
Unrealized gain on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income		4,827		10,263
Investment basis differences		1,066		692
Depreciation and amortization		—		16
Other		769		871
Total deferred tax liabilities		17,372		15,062
Total net deferred tax assets	$	35,809	$	20,250

Management believes it is more likely than not that the deferred tax assets will be fully utilized in future years. As a result, the Company has not recorded a valuation allowance at September 30, 2015 and December 31, 2014.

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GLOBAL INDEMNITY PLC

The Company has an alternative minimum tax credit carry forward of $10.6 million and $10.5 million as of September 30, 2015 and December 31, 2014, respectively, which can be carried forward indefinitely. The company has a net operating loss (“NOL”) carryforward of $6.3 million as of September 30, 2015. The company has no NOL carryforward as of December 31, 2014.

7. Liability for Unpaid Losses and Loss Adjustment Expenses

Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:

	Quarters Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands)	2015			2014		2015			2014
Balance at beginning of period	$	769,299		$	754,595	$	675,472		$	779,466
Less: Ceded reinsurance receivables		138,497			178,998		123,201			192,491
Net balance at beginning of period		630,802			575,597		552,271			586,975
Purchased reserves, gross		1,119			—		89,489			—
Less: Purchased reserves ceded		(1,119	)		—		(12,800	)		—
Purchased reserves, net		—			—		76,689			—
Incurred losses and loss adjustment expenses related to:
Current year		86,203			36,501		244,041			119,464
Prior years		(8,512	)		153		(17,171	)		(5,969	)
Total incurred losses and loss adjustment expenses		77,691			36,654		226,870			113,495
Paid losses and loss adjustment expenses related to:
Current year		53,512			15,480		113,573			39,472
Prior years		56,385			28,704		143,661			92,931
Total paid losses and loss adjustment expenses		109,897			44,184		257,234			132,403
Net balance at end of period		598,596			568,067		598,596			568,067
Plus: Ceded reinsurance receivables		130,913			171,864		130,913			171,864
Balance at end of period	$	729,509		$	739,931	$	729,509		$	739,931

When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates.

In the third quarter of 2015, the Company decreased its prior accident year loss reserves by $8.5 million, which consisted of a $7.3 million decrease related to Commercial Lines and a $1.2 million decrease related to Reinsurance Operations.

The $7.3 million decrease related to Commercial Lines primarily consisted of the following:

• Professional: A $3.5 million decrease in aggregate primarily related to better than anticipated loss emergence in accident years 2006 through 2012.

• General Liability: A $3.8 million decrease in aggregate primarily related to accident years 1999 through 2013 primarily due to better than anticipated frequency and severity in construction defect.

The $1.2 million decrease in aggregate related to Reinsurance Operations was primarily due to improved results reported by the Company’s cedants on property catastrophe contracts for accident years 2009 to 2013.

In the third quarter of 2014, the Company increased its prior accident year loss reserves by $0.2 million, which consisted of a $0.02 million increase related to Commercial Lines and a $0.1 million increase related to Reinsurance Operations.

The $0.02 million increase related to Commercial Lines primarily consisted of the following:

• General Liability: A $5.4 million increase primarily due to higher than anticipated loss emergence in recent accident years.

• Professional: A $6.4 million reduction is primarily due to lower than expected severity from accident years 2007 through 2011.

• Property: A $0.5 million increase primarily due to increased severity in accident years 2011 through 2013.

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GLOBAL INDEMNITY PLC

• Asbestos: $0.2 million increase primarily related to accident years prior to 1990 due to recent development on several claims.

• Other: A $0.3 million increase primarily due to accident years 2011 through 2013.

The $0.1 million increase related to Reinsurance Operations primarily consisted of the following:

• Property: A $3.4 million reduction is due to less catastrophe losses than anticipated primarily from accident year 2013.

• Commercial Auto: A $0.5 million increase due to increased severity primarily from accident years 2009 and 2010.

• Marine: A $3.0 million increase is primarily related to increased severity on accident years 2011 and 2012. These treaties are in runoff. Several claims have recently settled for amounts higher than expected.

In the first nine months of 2015, the Company decreased its prior accident year loss reserves by $17.2 million, which consisted of a $12.9 million decrease related to Commercial Lines and a $4.3 million decrease related to Reinsurance Operations.

The $12.9 million decrease related to Commercial Lines primarily consisted of the following:

• Property: A $0.8 million decrease in aggregate primary related to better than anticipated loss emergence in the 2011 through 2014 accident years.

• Umbrella: $0.3 million decrease primarily related to accident years 2003 through 2005 as a result of better than anticipated loss emergence.

• Professional: $6.4 million decrease in aggregate primarily related to better than anticipated frequency in accident years 2006 through 2012.

• General Liability: A $5.7 million decrease in aggregate primarily related to accident years prior to 2013 due to better than anticipated frequency and severity in construction defect.

The $4.3 million decrease in aggregate related to Reinsurance Operations was primarily due to improved results reported by the Company’s cedants on property contracts for accident years 2009 through 2014.

In the first nine months of 2014, the Company reduced its prior accident year loss reserves by $6.0 million, which consisted of a $5.0 million decrease related to Commercial Lines and a $1.0 million decrease related to Reinsurance Operations.

The $5.0 million decrease related to Commercial Lines primarily consisted of the following:

• Property: A $0.7 million increase primarily due to increased severity in accident years 2007, 2012, and 2013.

• General Liability: A $5.3 million increase primarily due to higher than anticipated loss emergence in recent accident years.

• Professional: A $18.1 million reduction due to lower than expected severity primarily from accident years 2007 through 2011.

• Asbestos: $7.1 million increase primarily related to accident years prior to 1990 due to recent development on several claims.

The $1.0 million decrease related to Reinsurance Operations primarily consisted of the following:

• Property: A $4.7 million reduction driven by less catastrophe losses than anticipated primarily from accident years 2012 and 2013.

• Marine: A $3.0 million increase primarily related to increased severity from accident years 2011 and 2012. These treaties are in runoff. Several claims have recently settled for amounts higher than expected.

• Commercial Auto: $0.7 million increase is primarily due to increased severity primarily from accident years 2009 and 2010.

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GLOBAL INDEMNITY PLC

8. Debt

The Company’s outstanding debt consisted of the following at September 30, 2015 and December 31, 2014:

(Dollars in thousands)	September 30, 2015		December 31, 2014
Margin Borrowing Facilities	$	195,787	$	174,673
7.75% Subordinated Notes due 2045		96,357		—
Total	$	292,144	$	174,673

Margin Borrowing Facilities

The amount outstanding on the Company’s margin borrowing facilities was $195.8 million and $174.7 million as of September 30, 2015 and December 31, 2014, respectively. The borrowing rate for each facility is tied to LIBOR and is currently approximately 1% as of September 30, 2015. These facilities are due on demand. The borrowings are subject to maintenance margin, which is a minimum account balance that must be maintained. A decline in market conditions could require an additional deposit of collateral. As of September 30, 2015, approximately $248.5 million in securities were deposited as collateral to support the borrowing.

The Company recorded interest expense of approximately $0.5 million and $0.1 million during the quarter ended September 30, 2015 and 2014, respectively, and $1.6 million and $0.5 million during the nine months ended September 30, 2015 and 2014, respectively, related to the Margin Borrowing Facilities.

7.75% Subordinated Notes due 2045

On August 12, 2015, the Company issued $100.0 million in aggregate principal amount of its 2045 Subordinated Notes through an underwritten public offering.

The notes bear interest at an annual rate equal to 7.75%, payable quarterly in arrears on February 15, May 15, August 15, and November 15 of each year, commencing November 15, 2015. The notes mature on August 15, 2045. The Company has the right to redeem the notes in $25 increments, in whole or in part, on and after August 15, 2020, or on any interest payments date thereafter, at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption.

The notes are subordinated unsecured obligations and rank (i) senior to the Company’s existing and future capital stock, (ii) senior in right of payment to future junior subordinated debt, (iii) equally in right of payment with any unsecured, subordinated debt that the Company incurs in the future that ranks equally with the notes, and (iv) subordinate in right of payment to any of the Company’s existing and future senior debt. In addition, the notes are structurally subordinated to all existing and future indebtedness, liabilities and other obligations of the Company’s subsidiaries.

The Company incurred $3.6 million in deferred issuance costs associated with the notes, which is being amortized over the term of the notes. Interest expense, including amortization of deferred issuance costs, recognized on the notes was $1.1 million during both the quarter and nine months ended September 30, 2015.

The following tables represent the amounts recorded for the margin borrowing facilities and 7.75% subordinated notes as of September 30, 2015 and December 31, 2014:

	September 30, 2015
	Outstanding Principal		Unamortized Debt Issuance Costs			Net Carrying Amount
Margin Borrowing Facilities	$	195,787	$	—		$	195,787
7.75% Subordinated Notes due 2045		100,000		(3,643	)		96,357
	$	295,787	$	(3,643	)	$	292,144

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GLOBAL INDEMNITY PLC

	December 31, 2014
	Outstanding Principal		Unamortized Debt Issuance Costs		Net Carrying Amount
Margin Borrowing Facilities	$	174,673	$	—	$	174,673
7.75% Subordinated Notes due 2045		—		—		—
	$	174,673	$	—	$	174,673

9. Shareholders’ Equity

Repurchases of the Company’s A ordinary shares

No shares were repurchased during the quarters ended September 30, 2015 and 2014. During the nine months ended September 30, 2015 and 2014, the Company repurchased 11,895 share and 5,444 shares, respectively, with an average price paid of $28.03 per share and $ 25.46 per share, respectively.

Please see Note 11 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2014 Annual Report on Form 10-K for more information on the Company’s repurchase program.

10. Related Party Transactions

Fox Paine & Company

As of September 30, 2015, Fox Paine beneficially owned shares having approximately 93% of the Company’s total outstanding voting power. Fox Paine has the right to appoint a number of the Company’s Directors equal in aggregate to the pro rata percentage of the voting shares of the Company beneficially held by Fox Paine for so long as Fox Paine holds an aggregate of 25% or more of the voting power in the Company. Fox Paine controls the election of all of the Company’s Directors due to its controlling share ownership. The Company’s Chairman is a member of Fox Paine. The Company relies on Fox Paine to provide management services and other services related to the operations of the Company.

At September 30, 2015 and December 31, 2014, Global Indemnity Reinsurance was a limited partner in Fox Paine Capital Fund, II, which is managed by Fox Paine. This investment was originally made by United National Insurance Company in June 2000 and pre-dates the September 5, 2003 acquisition by Fox Paine of Wind River Investment Corporation, which was the predecessor holding company for United National Insurance Company. The Company’s investment in this limited partnership was valued at $3.3 million and $3.4 million at September 30, 2015 and December 31, 2014, respectively. At September 30, 2015, the Company had an unfunded capital commitment of $2.4 million to the partnership. There were no distributions received from the limited partnership during the third quarter of 2015 or 2014. During the nine months ended September 30, 2015, the Company received a distribution of $0.8 million. There were no distributions received from the limited partnership during the nine months ended September 30, 2014.

The Company relies on Fox Paine to provide management services and other services related to the operations of the Company. The Company incurred management fees of $0.4 million and $0.5 million during the quarters ended September 30, 2015 and 2014, respectively, and $1.4 million and $1.5 million during the nine months ended September 30, 2015 and 2014, respectively, as part of the annual management fee paid to Fox Paine. As of September 30, 2015 and December 31, 2014, unpaid management fees, which were included in other liabilities on the consolidated balance sheets, were $2.1 million and $0.6 million, respectively.

In connection with the acquisition, the Company agreed to pay to Fox Paine an investment banking fee of 3% of the amount paid plus the additional capital required to operate American Reliable on a standalone basis and a $1.5 million investment advisory fee, which in the aggregate, totaled $6.5 million. This amount is included in corporate and other operating expenses on the Company’s Consolidated Statements of Operations during the nine months ended September 30, 2015. As payment for these fees, 267,702 A ordinary shares of Global Indemnity were issued under the Global Indemnity plc Share Incentive Plan in May, 2015. These shares will be registered but cannot be sold until the earlier of five years or a change of control. See Note 12 for additional information on the Global Indemnity plc Share Incentive Plan.

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GLOBAL INDEMNITY PLC

Cozen O’Connor

The Company incurred $0.2 million and $0.02 million for legal services rendered by Cozen O’Connor during the quarters ended September 30, 2015 and 2014, respectively. The Company incurred $0.6 million and $0.1 million for legal services rendered by Cozen O’Connor during the nine months ended September 30, 2015 and 2014, respectively. Stephen A. Cozen, the chairman of Cozen O’Connor, is a member of the Company’s Board of Directors.

Crystal & Company

The Company incurred brokerage fees with Crystal & Company, an insurance broker, of $0.1 million during each of the quarters ended September 30, 2015 and 2014 and $0.2 million during each of the nine months ended September 30, 2015 and 2014. James W. Crystal, the chairman and chief executive officer of Crystal & Company, is a member of the Company’s Board of Directors.

Hiscox Insurance Company (Bermuda) Ltd.

Global Indemnity Reinsurance was a participant in two reinsurance agreements with Hiscox Insurance Company (Bermuda) Ltd. (“Hiscox Bermuda”) while Steve Green, the President of Global Indemnity Reinsurance, was a member of Hiscox Bermuda’s Board of Directors. Steve Green was a member of Hiscox Bermuda’s Board of Directors until May, 2014. The Company estimated that the following earned premium and incurred losses related to these agreements have been assumed by Global Indemnity Reinsurance from Hiscox Bermuda:

	Quarters Ended September 30,
(Dollars in thousands)	2015			2014
Assumed earned premium	$	47		$	1,823
Assumed losses and loss adjustment expenses		(167	)		504
	Nine Months Ended September 30,
(Dollars in thousands)	2015			2014
Assumed earned premium	$	2,294		$	4,639
Assumed losses and loss adjustment expenses		476			1,349

Net balances due to Global Indemnity Reinsurance under this agreement are as follows:

(Dollars in thousands)	September 30, 2015			December 31, 2014
Net receivable (payable) balance	$	(61	)	$	2,897

11. Commitments and Contingencies

Legal Proceedings

The Company is, from time to time, involved in various legal proceedings in the ordinary course of business. The Company maintains insurance and reinsurance coverage for such risks in amounts that it considers adequate. However, there can be no assurance that the insurance and reinsurance coverage that the Company maintains is sufficient or will be available in adequate amounts or at a reasonable cost. The Company does not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material adverse effect on its business, results of operations, cash flows, or financial condition.

There is a greater potential for disputes with reinsurers who are in runoff. Some of the Company’s reinsurers’ have operations that are in runoff, and therefore, the Company closely monitors those relationships. The Company anticipates that, similar to the rest of the insurance and reinsurance industry, it will continue to be subject to litigation and arbitration proceedings in the ordinary course of business.

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GLOBAL INDEMNITY PLC

Commitments

During 2014, the Company entered into a $50 million commitment to purchase an alternative investment vehicle which is comprised of European non-performing loans. As of September 30, 2015, the Company has funded $28.7 million of this commitment leaving $21.3 million as unfunded.

At September 30, 2015, the Company had an unfunded capital commitment of $2.4 million related to its investment in Fox Paine Capital Fund, II. See Note 10 for additional information on the Company’s investment in Fox Paine Capital Fund, II.

12. Share-Based Compensation Plans

Options

No stock options were awarded during the quarters ended September 30, 2015 and 2014. No unvested stock options were forfeited during the quarter ended September 30, 2015. Unvested stock options of 75,000 were forfeited during the quarter ended September 30, 2014.

During the nine months ended September 30, 2015, the company awarded 200,000 time based options with a strike price of $28.37 per share which vest one third on each of December 31, 2015, December 31, 2016, and December 31, 2017. During the nine months ended September 30, 2014, the company awarded 25,000 time based options with a strike price of $24.00 per share which vest in February, 2017. Unvested stock options of 75,000, which include the 25,000 shares issued during the nine months ended September 30, 2014, were forfeited during the nine months ended September 30, 2014.

Restricted Shares

No restricted shares were issued to employees during the quarter ended September 30, 2015 and 2014.

During the nine months ended September 30, 2015, the Company issued 138,507 A ordinary shares, with a weighted average grant date value of $28.37 per share, to key employees under the Plan.

Of the shares issued during the nine months ended September 30, 2015, 10,574 were issued to the Company’s Chief Executive Officer and vest 33 1/3 on each subsequent anniversary date of the grant for a period of three years subject to an accident year true-up of bonus year underwriting results as of the third anniversary of the grant and an additional 44,058 were issued to the Company’s Chief Executive Officer and other key employees which vest 100% on January 1, 2018. The remaining 83,875 shares were issued to key employees and will vest as follows:

• 16.5%, 16.5%, and 17.0% of the granted stock vest on the first, second, and third anniversary of the grant, respectively.

• 50% of granted stock vests 100% on the anniversary of the third year subject to accident year true-up of bonus year underwriting results and are subject to Board approval.

During the nine months ended September 30, 2014, the Company issued 95,694 A ordinary shares, with a weighted average grant date value of $25.37 per share, to key employees under the 2014 Plan. Of the shares issued in 2014, 11,857 were granted to the Company’s Chief Executive Officer and vest 33 1/3 on each subsequent anniversary date of the grant for a period of three years subject to an accident year true-up of bonus year underwriting results as of the third anniversary of the grant. 5,671 were issued to a key employee and vest 33 1/3% on each subsequent anniversary date of the award for a period of three years. The remaining 78,166 shares were issued to key employees and will vest as follows:

• 16.5%, 16.5%, and 17.0% of the granted stock vest on the first, second, and third anniversary of the grant, respectively.

• 50% of granted stock vests 100% on the anniversary of the third year subject to accident year true-up of bonus year underwriting results and are subject to Board approval.

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GLOBAL INDEMNITY PLC

During the quarters ended September 30, 2015 and 2014, the Company issued 9,392 and 9,498 A ordinary shares, respectively, at a weighted average grant date value of $26.17 and $25.23 per share, respectively, to non-employee directors of the Company under the Plan. During the nine months ended September 30, 2015 and 2014, the Company issued 27,437 and 27,676 A ordinary shares, respectively, at a weighted average grant date value of $27.31 and $25.84 per share, respectively, to non-employee directors of the Company under the Plan. All of the shares issued to non-employee directors of the Company in 2015 and 2014 were fully vested but subject to certain restrictions. An additional 18,838 A ordinary shares were granted to non-employee directors on June 11, 2014. These shares were issued to non-employee directors prior to January 1, 2014 on the condition that the shareholders approve the Company’s revised share incentive plan at the Company’s 2014 annual shareholder meeting which occurred on June 11, 2014.

13. Earnings Per Share

Earnings per share have been computed using the weighted average number of ordinary shares and ordinary share equivalents outstanding during the period.

The following table sets forth the computation of basic and diluted earnings per share:

(Dollars in thousands,	Quarters Ended September 30,					Nine Months Ended September 30,
except share and per share data)	2015			2014		2015		2014
Net income (loss)	$	(3,746	)	$	9,761	$	14,165	$	51,792
Basic earnings per share:
Weighted average shares outstanding – basic		25,463,994			25,137,531		25,452,991		25,126,684
Net income (loss) per share	$	(0.15	)	$	0.39	$	0.56	$	2.06
Diluted earnings per share:
Weighted average shares outstanding – diluted		25,704,931			25,334,716		25,684,931		25,323,187
Net income (loss) per share	$	(0.15	)	$	0.39	$	0.55	$	2.05

A reconciliation of weighted average shares for basic earnings per share to weighted average shares for diluted earnings per share is as follows:

	Quarters Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Weighted average shares for basic earnings per share		25,463,994		25,137,531		25,452,991		25,126,684
Non-vested restricted stock		138,261		89,114		128,942		88,710
Options		102,676		108,071		102,998		107,793
Weighted average shares for diluted earnings per share		25,704,931		25,334,716		25,684,931		25,323,187

The weighted average shares outstanding used to determine dilutive earnings per share for the quarters ended September 30, 2015 and 2014 do not include 512,500 and 12,500 options, respectively, which were deemed to be anti-dilutive. The weighted average shares outstanding used to determine dilutive earnings per share for the nine months ended September 30, 2015 and 2014 do not include 512,500 and 12,500 options, respectively, which were deemed to be anti-dilutive.

The following table summarizes options which are deemed to be anti-dilutive at September 30, 2015:

Grant Date	Expiration Date	Outstanding Options		Strike Price
February 9, 2014	February 10, 2024		300,000		32.38
January 1, 2015	January 1, 2025		200,000		28.37
November 2, 2005 (1)	November 3, 2015		12,500		37.70
			512,500

(1) Represents anti-dilutive options at September 30, 2014.

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14. Segment Information

The acquisition of American Reliable has impacted the way the Company manages and analyzes its operating results. The business acquired from American Reliable is considered to be a separate segment, Personal Lines. The Company now manages its business through three business segments: Commercial Lines, managed in Bala Cynwyd, PA, offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs; Personal Lines, managed in Scottsdale, AZ, offers specialty personal lines and agricultural coverage; and Reinsurance Operations, managed in Bermuda, provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies.

The following are tabulations of business segment information for the quarters and nine months ended September 30, 2015 and 2014.

Quarter Ended September 30, 2015: (Dollars in thousands)	Commercial Lines (1)			Personal Lines (1)			Reinsurance Operations (2)			Total
Revenues:
Gross premiums written	$	52,920		$	87,349		$	9,879		$	150,148
Net premiums written	$	49,325		$	63,302		$	9,870		$	122,497
Net premiums earned	$	48,916		$	62,132		$	13,659		$	124,707
Other income (loss)		102			1,188			(11	)		1,279
Total revenues		49,018			63,320			13,648			125,986
Losses and Expenses:
Net losses and loss adjustment expenses		22,832			48,899			5,960			77,691
Acquisition costs and other underwriting expenses		20,686	(3)		25,779	(4)		4,469			50,934
Income (loss) from segments	$	5,500		$	(11,358	)	$	3,219		$	(2,639	)
Unallocated Items:
Net investment income											8,852
Net realized investment losses											(10,778	)
Corporate and other operating expenses											(3,567	)
Interest expense											(1,595	)
Income before income taxes											(9,727	)
Income tax benefit											5,981
Net income											(3,746	)
Total assets	$	1,005,435		$	572,807		$	740,377	(5)	$	2,318,619

(1) Includes business ceded to the Company’s Reinsurance Operations.

(2) External business only, excluding business assumed from affiliates.

(3) Includes federal excise tax of $258 relating to cessions from Commercial Lines to Reinsurance Operations.

(4) Includes federal excise tax of $310 relating to cessions from Personal Lines to Reinsurance Operations.

(5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

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Quarter Ended September 30, 2014: (Dollars in thousands)	Commercial Lines (1)			Reinsurance Operations (2)			Total
Revenues:
Gross premiums written	$	56,489		$	10,609		$	67,098
Net premiums written	$	52,674		$	10,588		$	63,262
Net premiums earned	$	52,462		$	15,566		$	68,028
Other income (loss)		164			(38	)		126
Total revenues		52,626			15,528			68,154
Losses and Expenses:
Net losses and loss adjustment expenses		29,575			7,079			36,654
Acquisition costs and other underwriting expenses		21,790	(3)		5,668			27,458
Income (loss) from segments	$	1,261		$	2,781			4,042
Unallocated Items:
Net investment income								6,527
Net realized investment gains								1,158
Corporate and other operating expenses								(3,481	)
Interest expense								(118	)
Income before income taxes								8,128
Income tax expense								1,633
Net income							$	9,761
Total assets	$	1,229,463		$	650,352	(4)	$	1,879,815

(1) Includes business ceded to the Company’s Reinsurance Operations.

(2) External business only, excluding business assumed from affiliates.

(3) Includes federal excise tax of $277 relating to cessions from Commercial Lines to Reinsurance Operations.

(4) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

Nine Months Ended September 30, 2015: (Dollars in thousands)	Commercial Lines (1)			Personal Lines (1)			Reinsurance Operations (2)			Total
Revenues:
Gross premiums written	$	161,746		$	249,564		$	48,222		$	459,532
Net premiums written	$	149,647		$	196,785		$	48,174		$	394,606
Net premiums earned	$	149,244		$	191,472		$	40,205		$	380,921
Other income (loss)		420			2,065			(77	)		2,408
Total revenues		149,664			193,537			40,128			383,329
Losses and Expenses:
Net losses and loss adjustment expenses		82,474			129,997			14,399			226,870
Acquisition costs and other underwriting expenses		61,317	(3)		74,590	(4)		14,211			150,118
Income from segments	$	5,873		$	(11,050	)	$	11,518		$	6,341
Unallocated Items:
Net investment income											26,234
Net realized investment losses											(7,216	)
Corporate and other operating expenses											(19,441	)
Interest expense											(2,635	)
Income before income taxes											3,283
Income tax benefit											10,882
Net income											14,165
Total assets	$	1,005,435		$	572,807		$	740,377	(5)	$	2,318,619

(1) Includes business ceded to the Company’s Reinsurance Operations.

(2) External business only, excluding business assumed from affiliates.

(3) Includes federal excise tax of $787 relating to cessions from Commercial Lines to Reinsurance Operations.

(4) Includes federal excise tax of $957 relating to cessions from Personal Lines to Reinsurance Operations.

(5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

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Nine Months Ended September 30, 2014: (Dollars in thousands)	Commercial Lines (1)			Reinsurance Operations (2)			Total
Revenues:
Gross premiums written	$	170,037		$	57,163		$	227,200
Net premiums written	$	156,369			56,126		$	212,495
Net premiums earned	$	158,809		$	42,780		$	201,589
Other income (loss)		490			(41	)		449
Total revenues		159,299			42,739			202,038
Losses and Expenses:
Net losses and loss adjustment expenses		97,047			16,449			113,496
Acquisition costs and other underwriting expenses		66,068	(3)		15,046			81,114
Income (loss) from segments	$	(3,816	)	$	11,244			7,428
Unallocated Items:
Net investment income								22,488
Net realized investment gains								40,226
Corporate and other operating expenses								(9,614	)
Interest expense								(628	)
Income before income taxes								59,900
Income tax expense								(8,108	)
Net income							$	51,792
Total assets	$	1,229,463		$	650,352	(4)	$	1,879,815

(1) Includes business ceded to the Company’s Reinsurance Operations.

(2) External business only, excluding business assumed from affiliates.

(3) Includes federal excise tax of $838 relating to cessions from Commercial Lines to Reinsurance Operations.

(4) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

15. New Accounting Pronouncements

In September, 2015, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance surrounding business combinations. The new guidance requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment is determined. It also requires that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. This guidance is effective for public entities for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. This guidance should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this guidance with earlier application permitted for financial statements that have not been issued. This guidance will be applicable to the Company if there is any material adjustments to amounts previously recorded during the measurement period related to the American Reliable acquisition. This guidance may also be applicable to future acquisitions. The Company plans to adopt this guidance in the first quarter of 2016.

In May, 2015, the FASB issued new accounting guidance surrounding investments in certain entities that calculate net asset value per share. The new guidance removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. It also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. This guidance is effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company plans to adopt this guidance in the first quarter of 2016 which will result in the Company’s other invested assets, that are measured utilizing net asset value, being removed from the fair value hierarchy.

In May, 2015, the FASB issued new accounting guidance surrounding short-duration contracts. The new guidance requires additional disclosure surrounding the liability for unpaid claims and claim adjustment expenses. This guidance is effective for public business entities for annual periods beginning after December 15, 2015 and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The Company plans to include these disclosures in its year ended December 31, 2016 financial statements.

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GLOBAL INDEMNITY PLC

In April 2015, the FASB issued new accounting guidance which requires that debt issuance costs be presented in the balance sheet as a direct reduction from the carrying amount of the recognized debt liability, consistent with the treatment of debt discounts or premiums. Amortization of debt issuance costs is to be reported as interest expense. The recognition and measurement guidance for debt issuance costs are not affected by this new guidance. For public entities, the guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this guidance in the third quarter, 2015.

The Company does not expect any of these four new accounting pronouncements to have a material impact on the Company’s consolidated statements of financial position or results of operations.

16. Subsequent Events

On October 29, 2015, Global Indemnity entered into a redemption agreement with certain affiliates of Fox Paine & Company, LLC and agreed to redeem 8,260,870 of its ordinary shares for $190 million in the aggregate from affiliates of Fox Paine & Company, LLC. Global Indemnity also acquired rights, expiring year end 2019, to redeem an additional 3,376,561 Ordinary Shares for $77,660,903, which amount is subject to an annual 3% increase. The Company is in discussions with affiliates of Fox Paine to acquire rights to redeem a further 1,146,716 ordinary shares on the same terms as the 3,376,561 share redemption rights. After giving effect to the share redemptions and regardless of whether or not the additional redemption rights are exercised, affiliates of Fox Paine will continue to have the ability to cast a majority of votes on matters submitted to Global Indemnity shareholders for approval.

Had the redemption occurred on or prior to September 30, 2015, outstanding shares would have been 17,472,318 as of September 30, 2015.

In connection with the redemption, the Company sold $279.9 million of securities from its consolidated investment portfolio during October, 2015, which resulted in a realized gain of $1.6 million. $102.0 million was used to pay down margin debt, with the remainder being used to fund a portion of the redemption transaction.

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the consolidated financial statements and accompanying notes of Global Indemnity included elsewhere in this report. Some of the information contained in this discussion and analysis or set forth elsewhere in this report, including information with respect to the Company’s plans and strategy, constitutes forward-looking statements that involve risks and uncertainties. Please see “Cautionary Note Regarding Forward-Looking Statements” at the end of this Item 2 for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained herein. For more information regarding the Company’s business and operations, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

Recent Developments

On October 29, 2015, Global Indemnity entered into a redemption agreement with certain affiliates of Fox Paine & Company, LLC and agreed to redeem 8,260,870 of its ordinary shares for $190 million in the aggregate from affiliates of Fox Paine & Company, LLC. Global Indemnity also acquired rights, expiring year end 2019, to redeem an additional 3,376,561 Ordinary Shares for $77,660,903, which amount is subject to an annual 3% increase. The Company is in discussions with affiliates of Fox Paine to acquire rights to redeem a further 1,146,716 ordinary shares on the same terms as the 3,376,561 share redemption rights. After giving effect to the share redemptions and regardless of whether or not the additional redemption rights are exercised, affiliates of Fox Paine will continue to have the ability to cast a majority of votes on matters submitted to Global Indemnity shareholders for approval.

In connection with the redemption, the Company sold $279.9 million of securities from its consolidated investment portfolio during October, 2015, which resulted in a realized gain of $1.6 million. $102.0 million was used to pay down margin debt, with the remainder being used to fund a portion of the redemption transaction.

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GLOBAL INDEMNITY PLC

On August 12, 2015, the Company issued $100.0 million in aggregate principal amount of its 2045 Subordinated Notes through an underwritten public offering. See Note 8 of the notes to the consolidated financial statements in Item 1 of Part I for additional information on this debt issuance.

On June 12, 2015, A.M. Best affirmed the financial strength rating of “A” (Excellent) for Global Indemnity Reinsurance and its U.S. insurance subsidiaries. Global Indemnity Reinsurance and subsidiaries have a financial size category of “XII” with A.M. Best, which represents an adjusted policyholder’s surplus of $1 billion to $1.25 billion.

On January 1, 2015, Global Indemnity Group, Inc. completed its acquisition of American Reliable. The results of American Reliable’s operations are included in the Company’s consolidated financial statements since the date of acquisition on January 1, 2015. The business acquired from American Reliable is considered to be a separate segment, Personal Lines. For additional information related to the acquisition of American Reliable, see Note 2 and Note 14 of the notes to the consolidated financial statements in Item 1 of Part I as well as the “Overview” and “Results of Operations” sections below.

Overview

In connection with the acquisition of American Reliable, the Company reevaluated segment classifications and determined that the Company will operate and manage its business through three business segments: Commercial Lines, Personal Lines, and Reinsurance Operations.

The Company’s Commercial Lines segment distribute property and casualty insurance products through a group of approximately 110 professional general agencies that have limited quoting and binding authority, as well as a number of wholesale insurance brokers who in turn sell the Company’s insurance products to insureds through retail insurance brokers. Commercial Lines operates predominantly in the excess and surplus lines marketplace. The Company manages its Commercial Lines segment via product classifications. These product classifications are: 1) Penn-America, which includes property and general liability products for small commercial businesses distributed through a select network of wholesale general agents with specific binding authority; 2) United National, which includes property, general liability, and professional lines products distributed through program administrators with specific binding authority; and 3) Diamond State, which includes property, casualty, and professional lines products distributed through wholesale brokers and program administrators with specific binding authority.

The Company’s Personal Lines segment, via the American Reliable product classification, offers specialty personal lines and agricultural coverage through general and specialty agents.

The Company’s Reinsurance Operations consisting solely of the operations of Global Indemnity Reinsurance, provides reinsurance solutions through brokers and on a direct basis. In prior years, the Company provided reinsurance solutions through program managers and primary writers, including regional insurance companies. Global Indemnity Reinsurance is a Bermuda based treaty reinsurer for specialty property and casualty insurance and reinsurance companies. Global Indemnity Reinsurance conducts business in Bermuda and is focused on using its capital capacity to write catastrophe-oriented placements and other niche or specialty-focused treaties meeting the Company’s risk tolerance and return thresholds.

The Company derives its revenues primarily from premiums paid on insurance policies that it writes and from income generated by its investment portfolio, net of fees paid for investment management services. The amount of insurance premiums that the Company receives is a function of the amount and type of policies it writes, as well as prevailing market prices.

The Company’s expenses include losses and loss adjustment expenses, acquisition costs and other underwriting expenses, corporate and other operating expenses, interest, investment expenses, and income taxes. Losses and loss adjustment expenses are estimated by management and reflect the Company’s best estimate of ultimate losses and costs arising during the reporting period and revisions of prior period estimates. The Company records its best estimate of losses and loss adjustment expenses based on both internal and external actuarial analyses of the estimated losses the Company expects to incur on the insurance policies it writes. The ultimate losses and loss adjustment expenses will depend on the actual costs to resolve claims. Acquisition costs consist principally of commissions and premium taxes that are typically a percentage of the premiums on the insurance policies the Company writes, net of ceding commissions earned from reinsurers. Other underwriting expenses consist primarily of personnel expenses and general operating expenses. Corporate and other operating expenses are comprised primarily of outside legal fees, other professional and accounting fees, directors’ fees, management fees and salaries and benefits for company personnel whose services relate to the support of corporate activities. Interest expense is primarily comprised of amounts due on outstanding debt.

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GLOBAL INDEMNITY PLC

Critical Accounting Estimates and Policies

The Company’s consolidated financial statements are prepared in conformity with GAAP, which require it to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions.

The Company believes that of the Company’s significant accounting policies, the following may involve a higher degree of judgment and estimation.

Liability for Unpaid Losses and Loss Adjustment Expenses

Although variability is inherent in estimates, the Company believes that the liability for unpaid losses and loss adjustment expenses reflects its best estimate for future amounts needed to pay losses and related loss adjustment expenses and the impact of its reinsurance coverage with respect to insured events.

In developing loss and loss adjustment expense (“loss” or “losses”) reserve estimates for the Company’s Insurance Operations, its actuaries perform detailed reserve analyses each quarter. To perform the analysis, the data is organized at a “reserve category” level. Management is responsible for the final determination of loss reserve selections. A reserve category can be a line of business such as commercial automobile liability, or it can be a particular type of claim such as construction defect. The reserves within a reserve category level are characterized as short-tail and long-tail. For long-tail business, it will generally be several years between the time the business is written and the time when all claims are settled. The Company’s long-tail exposures include general liability, professional liability, products liability, commercial automobile liability, and excess and umbrella. Short-tail exposures include property, commercial automobile physical damage, and equine mortality. To manage its insurance operations, the Company differentiates by product classifications, which are Penn-America, United National, Diamond State and American Reliable. For further discussion about the Company’s product classifications, see “General – Business Segments - Insurance Operations” in Item 1 of Part I of the Company’s 2014 Annual Report on Form 10-K. Each of the Company’s product classifications contain both long-tail and short-tail exposures. Every reserve category is analyzed by the Company’s actuaries each quarter. The analyses generally include reviews of losses, gross of reinsurance and net of reinsurance.

Loss reserve estimates for the Company’s Reinsurance Operations are developed by independent, external actuaries at least annually and are regularly monitored by management. Management is responsible for the final determination of loss reserve selections. The data for this analysis is organized by treaty and treaty year. As with the Company’s reserves for its Insurance Operations, reserves for its Reinsurance Operations are characterized as short-tail and long-tail. Long-tail exposures include workers compensation, professional liability, and excess and umbrella liability. Short-tail exposures are primarily catastrophe exposed property and marine accounts. Management reviews each treaty each quarter both gross and net of reinsurance.

In addition to the Company’s internal reserve analysis, independent external actuaries perform a full, detailed review of the Insurance and Reinsurance Operations’ reserves annually. The Company reviews both the internal and external actuarial analyses in determining its reserve position.

The methods used to project ultimate losses for both long-tail and short-tail exposures include, but are not limited to, the following:

• Paid Development method;

• Incurred Development method;

• Expected Loss Ratio method;

• Bornhuetter-Ferguson method using premiums and paid loss;

• Bornhuetter-Ferguson method using premiums and incurred loss; and

• Average Loss method.

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GLOBAL INDEMNITY PLC

The Paid Development method estimates ultimate losses by reviewing paid loss patterns and applying them to accident years with further expected changes in paid loss. Selection of the paid loss pattern requires analysis of several factors including the impact of inflation on claims costs, the rate at which claims professionals make claim payments and close claims, the impact of judicial decisions, the impact of underwriting changes, the impact of large claim payments and other factors. Claim cost inflation itself requires evaluation of changes in the cost of repairing or replacing property, changes in the cost of medical care, changes in the cost of wage replacement, judicial decisions, legislative changes and other factors. Because this method assumes that losses are paid at a consistent rate, changes in any of these factors can impact the results. Since the method does not rely on case reserves, it is not directly influenced by changes in the adequacy of case reserves.

For many reserve categories, paid loss data for recent periods may be too immature or erratic for accurate predictions. This situation often exists for long-tail exposures. In addition, changes in the factors described above may result in inconsistent payment patterns. Finally, estimating the paid loss pattern subsequent to the most mature point available in the data analyzed often involves considerable uncertainty for long-tail reserve categories.

The Incurred Development method is similar to the Paid Development method, but it uses case incurred losses instead of paid losses. Since this method uses more data (case reserves in addition to paid losses) than the Paid Development method, the incurred development patterns may be less variable than paid development patterns. However, selection of the incurred loss pattern requires analysis of all of the factors listed in the description of the Paid Development method. In addition, the inclusion of case reserves can lead to distortions if changes in case reserving practices have taken place and the use of case incurred losses may not eliminate the issues associated with estimating the incurred loss pattern subsequent to the most mature point available.

The Expected Loss Ratio method multiplies premiums by an expected loss ratio to produce ultimate loss estimates for each accident year. This method may be useful if loss development patterns are inconsistent, losses emerge very slowly, or there is relatively little loss history from which to estimate future losses. The selection of the expected loss ratio requires analysis of loss ratios from earlier accident years or pricing studies and analysis of inflationary trends, frequency trends, rate changes, underwriting changes, and other applicable factors.

The Bornhuetter-Ferguson method using premiums and paid losses is a combination of the Paid Development method and the Expected Loss Ratio method. This method normally determines expected loss ratios similar to the method used for the Expected Loss Ratio method and requires analysis of the same factors described above. The method assumes that only future losses will develop at the expected loss ratio level. The percent of paid loss to ultimate loss implied from the Paid Development method is used to determine what percentage of ultimate loss is yet to be paid. The use of the pattern from the Paid Development method requires consideration of all factors listed in the description of the Paid Development method. The estimate of losses yet to be paid is added to current paid losses to estimate the ultimate loss for each year. This method will react very slowly if actual ultimate loss ratios are different from expectations due to changes not accounted for by the expected loss ratio calculation.

The Bornhuetter-Ferguson method using premiums and incurred losses is similar to the Bornhuetter-Ferguson method using premiums and paid losses except that it uses case incurred losses. The use of case incurred losses instead of paid losses can result in development patterns that are less variable than paid development patterns. However, the inclusion of case reserves can lead to distortions if changes in case reserving practices have taken place. The method requires analysis of all the factors that need to be reviewed for the Expected Loss Ratio and Incurred Development methods.

The Average Loss method multiplies a projected number of ultimate claims by an estimated ultimate average loss for each accident year to produce ultimate loss estimates. Since projections of the ultimate number of claims are often less variable than projections of ultimate loss, this method can provide more reliable results for reserve categories where loss development patterns are inconsistent or too variable to be relied on exclusively. In addition, this method can more directly account for changes in coverage that impact the number and size of claims. However, this method can be difficult to apply to situations where very large claims or a substantial number of unusual claims result in volatile average claim sizes. Projecting the ultimate number of claims requires analysis of several factors including the rate at which policyholders report claims to the Company, the impact of judicial decisions, the impact of underwriting changes and other factors. Estimating the ultimate average loss requires analysis of the impact of large losses and claim cost trends based on changes in the cost of repairing or replacing property, changes in the cost of medical care, changes in the cost of wage replacement, judicial decisions, legislative changes and other factors.

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GLOBAL INDEMNITY PLC

For many exposures, especially those that can be considered long-tail, a particular accident year may not have a sufficient volume of paid losses to produce a statistically reliable estimate of ultimate losses. In such a case, the Company’s actuaries typically assign more weight to the Incurred Development method than to the Paid Development method. As claims continue to settle and the volume of paid losses increases, the actuaries may assign additional weight to the Paid Development method. For most of the Company’s reserve categories, even the incurred losses for accident years that are early in the claim settlement process will not be of sufficient volume to produce a reliable estimate of ultimate losses. In these cases, the Company will not assign any weight to the Paid and Incurred Development methods and will use the Bornhuetter-Ferguson and Expected Loss Ratio methods. For short-tail exposures, the Paid and Incurred Development methods can often be relied on sooner primarily because the Company’s history includes a sufficient number of years to cover the entire period over which paid and incurred losses are expected to change. However, the Company may also use the Expected Loss Ratio, Bornhuetter-Ferguson and Average Loss methods for short-tail exposures.

Generally, reserves for long-tail lines give more weight to the Expected Loss Ratio method in the more recent immature years. As the accident years mature, weight shifts to the Bornhuetter-Ferguson methods and eventually to the Incurred and/or Paid Development method. Claims related to umbrella business are usually reported later than claims for other long-tail lines. For umbrella business, the shift from the Expected Loss Ratio method to the Bornhuetter-Ferguson methods to the Loss Development method may be more protracted than for most long tailed lines. Reserves for short-tail lines tend to make the shift across methods more quickly than the long tail lines.

For other more complex reserve categories where the above methods may not produce reliable indications, the Company uses additional methods tailored to the characteristics of the specific situation. Such reserve categories include losses from construction defects and asbestos and environmental (“A&E”).

For construction defect losses, the Company’s actuaries organize losses by the year in which they were reported to develop an IBNR provision for development on known cases. To estimate losses from claims that have not been reported (pure IBNR), various extrapolation techniques are applied to the pattern of claims that have been reported to estimate the number of claims yet to be reported. This process requires analysis of several factors including the rate at which policyholders report claims to the Company, the impact of judicial decisions, the impact of underwriting changes and other factors. An average claim size is determined from past experience and applied to the number of unreported claims to estimate reserves for these claims.

Establishing reserves for A&E and other mass tort claims involves considerably more judgment than other types of claims due to, among other things, inconsistent court decisions, an increase in bankruptcy filings as a result of asbestos-related liabilities, and judicial interpretations that often expand theories of recovery and broaden the scope of coverage. The insurance industry continues to receive a substantial number of asbestos-related bodily injury claims, with an increasing focus being directed toward other parties, including installers of products containing asbestos rather than against asbestos manufacturers. This shift has resulted in significant insurance coverage litigation implicating applicable coverage defenses or determinations, if any, including but not limited to, determinations as to whether or not an asbestos-related bodily injury claim is subject to aggregate limits of liability found in most comprehensive general liability policies. The Company continues to closely monitor its asbestos exposure and make adjustments where they are warranted.

In 2009, one of the Company’s insurance companies entered into a settlement agreement to resolve asbestos related coverage litigation related to approximately 3,900 existing asbestos-related bodily injury claims and future claims. The settlement was approved by the Court and a final order was issued in September 2014.

In addition, the Company has exposure to other asbestos related matters. In 2013, three claims were reported on an excess policy that was written in 1985. These claims were settled in April, 2014. Management will continue to monitor the developments of the litigation noted above as well as the new claims that have been reported to determine if any additional financial exposure is present.

Reserve analyses performed by the Company’s internal and external actuaries result in actuarial point estimates. The results of the detailed reserve reviews were summarized and discussed with the Company’s senior management to determine the best estimate of reserves. This group considered many factors in making this decision. The factors included, but were not limited to, the historical pattern and volatility of the actuarial indications, the sensitivity of the actuarial indications to changes in paid and incurred loss patterns, the consistency of claims handling processes, the consistency of case reserving practices, changes in the Company’s pricing and underwriting, and overall pricing and underwriting trends in the insurance market.

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Management’s best estimate at September 30, 2015 was recorded as the loss reserve. Management’s best estimate is as of a particular point in time and is based upon known facts, the Company’s actuarial analyses, current law, and the Company’s judgment. This resulted in carried gross and net reserves of $729.5 million and $598.6 million, respectively, as of September 30, 2015. A breakout of the Company’s gross and net reserves, excluding the effects of the Company’s intercompany pooling arrangements and intercompany stop loss and quota share reinsurance agreements, as of September 30, 2015 is as follows:

	Gross Reserves
(Dollars in thousands)	Case		IBNR (1)		Total
Commercial Lines	$	145,388	$	412,056	$	557,444
Personal Lines		47,330		58,817		106,147
Reinsurance Operations		18,608		47,310		65,918
Total	$	211,326	$	518,183	$	729,509

	Net Reserves (2)
(Dollars in thousands)	Case		IBNR (1)		Total
Commercial Lines	$	109,018	$	330,265	$	439,283
Personal Lines		41,524		52,218		93,742
Reinsurance Operations		18,608		46,963		65,571
Total	$	169,150	$	429,446	$	598,596

(1) Losses incurred but not reported, including the expected future emergence of case reserves.

(2) Does not include reinsurance receivable on paid losses.

The Company continually reviews these estimates and, based on new developments and information, includes adjustments of the estimated ultimate liability in the operating results for the periods in which the adjustments are made. The establishment of loss and loss adjustment expense reserves makes no provision for the possible broadening of coverage by legislative action or judicial interpretation, or the emergence of new types of losses not sufficiently represented in the Company’s historical experience or that cannot yet be quantified or estimated. The Company regularly analyzes its reserves and reviews pricing and reserving methodologies so that future adjustments to prior year reserves can be minimized. However, given the complexity of this process, reserves require continual updates and the ultimate liability may be higher or lower than previously indicated. Changes in estimates for loss and loss adjustment expense reserves are recorded in the period that the change in these estimates is made. See Note 7 of the notes to the consolidated financial statements in Item 1 of Part I of this report for details concerning the changes in the estimate for incurred loss and loss adjustment expenses related to prior accident years.

The detailed reserve analyses that the Company’s internal and external actuaries complete use a variety of generally accepted actuarial methods and techniques to produce a number of estimates of ultimate loss. The Company determines its best estimate of ultimate loss by reviewing the various estimates and assigning weight to each estimate given the characteristics of the reserve category being reviewed. The reserve estimate is the difference between the estimated ultimate loss and the losses paid to date. The difference between the estimated ultimate loss and the case incurred loss (paid loss plus case reserve) is considered to be losses incurred but not reported (“IBNR”). IBNR calculated as such includes a provision for development on known cases (supplemental development) as well as a provision for claims that have occurred but have not yet been reported (pure IBNR).

In light of the many uncertainties associated with establishing the estimates and making the assumptions necessary to establish reserve levels, the Company reviews its reserve estimates on a regular basis and makes adjustments in the period that the need for such adjustments is determined. The anticipated future loss emergence continues to be reflective of historical patterns, and the selected development patterns have not changed significantly from those underlying the Company’s most recent analyses.

The key assumptions fundamental to the reserving process are often different for various reserve categories and accident years. Some of these assumptions are explicit assumptions that are required of a particular method, but most of the assumptions are implicit and cannot be precisely quantified. An example of an explicit assumption is the pattern employed in the Paid Development method. However, the assumed pattern is itself based on several implicit assumptions such as the impact of inflation on medical costs and the rate at which claim professionals close claims. Loss frequency is a measure of the number of claims per unit of insured exposure, and loss severity is a measure of the average size of claims. Each reserve segment has an implicit frequency and severity for each accident year as a result of the various assumptions made.

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Previous reserve analyses have resulted in the Company’s identification of information and trends that have caused it to increase or decrease frequency and severity assumptions in prior periods and could lead to the identification of a need for additional material changes in loss and loss adjustment expense reserves, which could materially affect results of operations, equity, business and insurer financial strength and debt ratings. Factors affecting loss frequency include, among other things, the effectiveness of loss controls and safety programs and changes in economic activity or weather patterns. Factors affecting loss severity include, among other things, changes in policy limits and deductibles, rate of inflation and judicial interpretations. Another factor affecting estimates of loss frequency and severity is the loss reporting lag, which is the period of time between the occurrence of a loss and the date the loss is reported to the Company. The length of the loss reporting lag affects the Company’s ability to accurately predict loss frequency (loss frequencies are more predictable for short-tail lines) as well as the amount of reserves needed for IBNR.

If the actual levels of loss frequency and severity are higher or lower than expected, the ultimate losses will be different than management’s best estimate. For most of its reserving classes, the Company believes that frequency can be predicted with greater accuracy than severity. Therefore, the Company believes management’s best estimate is more sensitive to changes in severity than frequency. The following table, which the Company believes reflects a reasonable range of variability around its best estimate based on historical loss experience and management’s judgment, reflects the impact of changes (which could be favorable or unfavorable) in frequency and severity on the Company’s current accident year net loss estimate of $244.0 million for claims occurring during the nine months ended September 30, 2015:

(Dollars in thousands)			Severity Change
			-10%			-5%			0%			5%			10%
Frequency Change	-5	%	$	(35,380	)	$	(23,790	)	$	(12,200	)	$	(610	)	$	10,980
	-3	%		(30,988	)		(19,154	)		(7,320	)		4,514			16,348
	-2	%		(28,792	)		(16,836	)		(4,880	)		7,076			19,032
	-1	%		(26,596	)		(14,518	)		(2,440	)		9,638			21,716
	0	%		(24,400	)		(12,200	)		—			12,200			24,400
	1	%		(22,204	)		(9,882	)		2,440			14,762			27,084
	2	%		(20,008	)		(7,564	)		4,880			17,324			29,768
	3	%		(17,812	)		(5,246	)		7,320			19,886			32,452
	5	%		(13,420	)		(610	)		12,200			25,010			37,820

The Company’s net reserves for losses and loss expenses of $598.6 million as of September 30, 2015 relate to multiple accident years. Therefore, the impact of changes in frequency and severity for more than one accident year could be higher or lower than the amounts reflected above.

Recoverability of Reinsurance Receivables

The Company regularly reviews the collectability of its reinsurance receivables and includes adjustments resulting from this review in earnings in the period in which the adjustment arises. A.M. Best ratings, financial history, available collateral and payment history with the reinsurers are several of the factors that the Company considers when judging collectability. Changes in loss reserves can also affect the valuation of reinsurance receivables if the change is related to loss reserves that are ceded to reinsurers. Certain amounts may be uncollectible if the Company’s reinsurers dispute a loss or if the reinsurer is unable to pay. If its reinsurers do not pay, the Company remains legally obligated to pay the loss.

Investments

The carrying amount of the Company’s investments approximates their fair value. The Company regularly performs various analytical valuation procedures with respect to investments, including reviewing each fixed maturity security in an unrealized loss position to determine the amount of unrealized loss related to credit loss and the amount related to all other factors, such as changes in interest rates. The credit loss represents the portion of the amortized book value in excess of the net present value of the projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. The credit loss component of the other than temporary impairment is recorded through earnings, whereas the amount relating to factors other than credit losses are recorded in other comprehensive income, net of taxes. During its review, the Company considers credit rating, market price, and issuer specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities for which the Company

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determines that a credit loss is likely are subjected to further analysis to estimate the credit loss to be recognized in earnings, if any. See Note 3 of the notes to consolidated financial statements in Item 1 of Part I of this report for the specific methodologies and significant assumptions used by asset class. Upon identification of such securities and periodically thereafter, a detailed review is performed to determine whether the decline is considered other than temporary. This review includes an analysis of several factors, including but not limited to, the credit ratings and cash flows of the securities and the magnitude and length of time that the fair value of such securities is below cost.

For an analysis of the Company’s securities with gross unrealized losses as of September 30, 2015 and December 31, 2014, and for other than temporary impairment losses that the Company recorded for the quarters ended September 30, 2015 and 2014, please see Note 3 of the notes to the consolidated financial statements in Item 1 of Part I of this report.

Fair Value Measurements

The Company categorizes its invested assets and derivative instruments that are accounted for at fair value in the consolidated statements into a fair value hierarchy. The fair value hierarchy is directly related to the amount of subjectivity associated with the inputs utilized to determine the fair value of these assets.

The reported value of financial instruments not carried at fair value, principally cash and cash equivalents and margin borrowing facility, approximates fair value.

See Note 5 of the notes to the consolidated financial statements in Item 1 of Part I of this report for further information about the fair value hierarchy and the Company’s assets that are accounted for at fair value.

Goodwill and Intangible Assets

The Company tests for impairment of goodwill at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of goodwill for impairment using both qualitative and quantitative factors. Impairment of goodwill is recognized only if the carrying amount of the reporting unit, including goodwill, exceeds the fair value of the reporting unit. The amount of the impairment loss would be equal to the excess carrying value of the goodwill over the implied fair value of the reporting unit goodwill.

Impairment of intangible assets with indefinite useful lives is tested at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of intangible assets for impairment using both qualitative and quantitative factors. Impairment of indefinite lived intangible assets is recognized only if the carrying amount of the intangible assets exceeds the fair value of said assets. The amount of the impairment loss would be equal to the excess carrying value of the assets over the fair value of said assets.

Intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated useful lives. The carrying amounts of definite lived intangible assets are regularly reviewed for indicators of impairment in accordance with applicable accounting guidance. Impairment is recognized only if the carrying amount of the intangible asset is in excess of its undiscounted projected cash flows. The impairment is measured as the difference between the carrying amount and the estimated fair value of the asset.

Deferred Acquisition Costs

The costs of acquiring new and renewal insurance and reinsurance contracts include commissions, premium taxes and certain other costs that vary with and are directly related to the successful acquisition of new and renewal insurance and reinsurance contracts. The excess of the Company’s costs of acquiring new and renewal insurance and reinsurance contracts over the related ceding commissions earned from reinsurers is capitalized as deferred acquisition costs and amortized over the period in which the related premiums are earned.

In accordance with accounting guidance for insurance enterprises, the method followed in computing such amounts limits them to their estimated realizable value that gives effect to the premium to be earned, related investment income, losses and loss adjustment expenses, and certain other costs expected to be incurred as the premium is earned. A premium deficiency charge is recognized if the sum of expected loss and loss adjustment expenses and unamortized acquisition costs exceeds related unearned premium. This evaluation is done at a product line level in Insurance Operations and at a treaty level in

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Reinsurance Operations. Any future expected loss on the related unearned premium is recorded first by impairing the unamortized acquisition costs on the related unearned premium followed by an increase to loss and loss adjustment expense reserves on additional expected loss in excess of unamortized acquisition costs. The Company calculates deferred acquisition costs for Insurance Operations separately by product lines and for its Reinsurance Operations separately for each treaty.

Taxation

The Company provides for income taxes in accordance with applicable accounting guidance. The Company’s deferred tax assets and liabilities primarily result from temporary differences between the amounts recorded in the consolidated financial statements and the tax basis of the Company’s assets and liabilities.

At each balance sheet date, management assesses the need to establish a valuation allowance that reduces deferred tax assets when it is more likely than not that all, or some portion, of the deferred tax assets will not be realized. A valuation allowance would be based on all available information including the Company’s assessment of uncertain tax positions and projections of future taxable income from each tax-paying component in each jurisdiction, principally derived from business plans and available tax planning strategies. There are no valuation allowances as of September 30, 2015 or December 31, 2014. The deferred tax asset balance is analyzed regularly by management. This assessment requires significant judgment and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of carryforward periods, and tax planning strategies and/or actions. Based on these analyses, the Company has determined that its deferred tax asset is recoverable. Projections of future taxable income incorporate several assumptions of future business and operations that are apt to differ from actual experience. If, in the future, the Company’s assumptions and estimates that resulted in the forecast of future taxable income for each tax-paying component prove to be incorrect, a valuation allowance may be required. This could have a material adverse effect on the Company’s financial condition, results of operations, and liquidity.

On an interim basis, the Company generally records its tax provision using the expected full year effective tax rate. Forecasts which compute taxable income and taxes expected to be incurred in the jurisdictions where the Company does business are prepared several times per year. The effective tax rate is computed by dividing forecasted income tax expense not including tax on net realized investment gains (losses) and discrete items by forecasted pre-tax income not including net realized investment gains (losses) and discrete items. Changes in pre-tax and taxable income in the jurisdictions where the Company does business can change the effective tax rate. To compute the Company’s income tax expense on an interim basis, the Company generally applies its expected full year effective tax rate against its pre-tax income excluding net realized investment gains (losses) and discrete items and then adds actual tax on net realized investment gains (losses) and discrete items to that result. However, when there is significant volatility in the expected tax rate, the Company records its actual income tax provision in lieu of the estimated effective income tax rate.

The Company applies a more likely than not recognition threshold for all tax uncertainties, only allowing the recognition of those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the taxing authorities.

Business Segments

The Company manages its business through three business segments: Personal Lines, Commercial Lines, and Reinsurance Operations.

The Company evaluates the performance of these three segments based on gross and net premiums written, revenues in the form of net premiums earned and expenses in the form of net losses and loss adjustment expenses, acquisition costs, and other underwriting expenses.

For a description of the Company’s segments, see Note 14 of the notes to the consolidated financial statements in Item 1 of Part I.

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The following table sets forth an analysis of financial data for the Company’s segments during the periods indicated:

(Dollars in thousands)	Quarters Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015			2014
Personal Lines premium written:
Gross premiums written	$	87,349		$	—	$	249,564		$	—
Ceded premiums written		24,047			—		52,779			—
Net premiums written	$	63,302		$	—	$	196,785		$	—
Commercial Lines premiums written:
Gross premiums written	$	52,920		$	56,489	$	161,746		$	170,037
Ceded premiums written		3,595			3,815		12,099			13,668
Net premiums written	$	49,325		$	52,674	$	149,647		$	156,369
Reinsurance Operations premiums written:
Gross premiums written	$	9,879		$	10,609	$	48,222		$	57,163
Ceded premiums written		9			21		48			1,037
Net premiums written	$	9,870		$	10,588	$	48,174		$	56,126
Revenues: (1)
Personal Lines	$	63,320		$	—	$	193,537		$	—
Commercial Lines		49,018			52,626		149,664			159,299
Reinsurance Operations		13,648			15,528		40,128			42,739
Total revenues	$	125,986		$	68,154	$	383,329		$	202,038
Expenses: (2)
Personal Lines (3)	$	74,678		$	—	$	204,587		$	—
Commercial Lines (4)		43,518			51,365		143,791			163,115
Reinsurance Operations		10,429			12,747		28,610			31,495
Total expenses	$	128,625		$	64,112	$	376,988		$	194,610
Income (loss) from segments:
Personal Lines	$	(11,358	)	$	—	$	(11,050	)	$	—
Commercial Lines		5,500			1,261		5,873			(3,816	)
Reinsurance Operations		3,219			2,781		11,518			11,244
Total income (loss) from segments	$	(2,639	)	$	4,042	$	6,341		$	7,428
Insurance combined ratio analysis: (5)
Personal Lines
Loss ratio		78.7			—		67.9			—
Expense ratio		41.5			—		39.0			—
Combined ratio		120.2			—		106.9			—
Commercial Line
Loss ratio		46.7			56.3		55.2			61.2
Expense ratio		42.3			41.5		41.1			41.6
Combined ratio		89.0			97.8		96.3			102.8
Reinsurance Operations
Loss ratio		43.6			45.4		35.8			38.4
Expense ratio		32.7			36.4		35.3			35.2
Combined ratio		76.3			81.8		71.1			73.6
Consolidated
Loss ratio		62.3			53.9		59.6			56.3
Expense ratio		40.8			40.4		39.4			40.2
Combined ratio		103.1			94.3		99.0			96.5

(1) Excludes net investment income and net realized investment gains (losses), which are not allocated to the Company’s segments.

(2) Excludes corporate and other operating expenses and interest expense, which are not allocated to the Company’s segments.

(3) Includes excise tax of $310 and $0 for the quarters ended September 30, 2015 and 2014, respectively, and excise tax of $957 and $0 for the nine months ended September 30, 2015 and 2014, respectively, related to cessions from the Company’s Personal Lines to the Company’s Reinsurance Operations.

(4) Includes excise tax of $258 and $277 for the quarters ended September 30, 2015 and 2014, respectively, and excise tax of $787 and $838 for the nine months ended September 30, 2015 and 2014, respectively, related to cessions from the Company’s Commercial Lines to the Company’s Reinsurance Operations.

(5) The Company’s insurance combined ratios are GAAP financial measures that are generally viewed in the insurance industry as indicators of underwriting profitability. The loss ratio is the ratio of net losses and loss adjustment expenses to net premiums earned. The expense ratio is the ratio of acquisition costs and other underwriting expenses to net premiums earned. The combined ratio is the sum of the loss and expense ratios.

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Results of Operations

All percentage and dollar changes included in the text below have been calculated using the corresponding amounts from the applicable tables.

Quarter Ended September 30, 2015 Compared with the Quarter Ended September 30, 2014

Personal Lines

The components of income from the Company’s Personal Lines segment and corresponding underwriting ratios are as follows:

(Dollars in thousands)	Quarters Ended September 30,					Increase / (Decrease)
	2015			2014 (1)		$			%
Gross premiums written	$	87,349		$	94,306	$	(6,957	)		(7.4	%)
Net premiums written	$	63,302		$	62,766	$	536			0.9	%
Net premiums earned	$	62,132		$	63,744	$	(1,612	)		(2.5	%)
Other income		1,188			413		775			187.7	%
Total revenues		63,320			64,157		(837	)		(1.3	%)
Losses and expenses:
Net losses and loss adjustment expenses		48,899			36,605		12,294			33.6	%
Acquisition costs and other underwriting expenses (2)		25,779			25,757		22			0.1	%
Income (loss) from segment	$	(11,358	)	$	1,795	$	(13,153	)		(732.8	%)
Underwriting Ratios:
Loss ratio:
Current accident year		78.7			55.1		23.6
Prior accident year		0.0			2.3		(2.3	)
Calendar year loss ratio		78.7			57.4		21.3
Expense ratio		41.5			40.4		1.1
Combined ratio		120.2			97.8		22.4

Reconciliation of Non-GAAP Measures
Loss ratio excluding the effect of prior accident year (3) (4)		78.7		55.1
Effect of prior accident year		0.0		2.3
Loss ratio		78.7		57.4
Non catastrophe loss ratio excluding the effect of prior accident year (4) (5)		56.7		50.2
Effect of prior accident year		0.0		2.3
Non catastrophe loss ratio		56.7		52.5
Non catastrophe losses excluding the effect of prior accident year (4) (6)	$	35,236	$	31,976
Effect of prior accident year		0		1,497
Non catastrophe losses	$	35,236	$	33,473

(1) Represent unaudited pro forma results of operation for the quarter ended September 30, 2014 as if the acquisition had occurred on January 1, 2014 as opposed to January 1, 2015.

(2) Includes excise tax of $310 and $319 related to cessions from the Company’s Personal Lines to its Reinsurance Operations for the quarters ended September 30, 2015 and 2014, respectively.

(3) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the loss ratio.

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(4) The Company believes that this non-GAAP ratio or measure is useful to investors when evaluating the Company’s underwriting performance as trends in the Company’s Personal Lines may be obscured by prior accident year adjustments. This non-GAAP ratio should not be considered as a substitute for its most directly comparable GAAP measure and does not reflect the overall underwriting profitability of the Company.

(5) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the non-catastrophe loss ratio.

(6) This is a non-GAAP measure that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the non-catastrophe losses.

Gross premiums written, which represent the amount received or to be received for insurance policies written without reduction for reinsurance costs or other deductions, were $87.3 million for the quarter ended September 30, 2015, compared with $94.3 million for the quarter ended September 30, 2014, a decrease of $7.0 million or 7.4%. The decrease is primarily due to a decrease in premiums on business written by American Reliable that is ceded to insurance entities owned by Assurant under a 100% quota share reinsurance agreement.

Net premiums written, which equal gross premiums written less ceded premiums written, were $63.3 million for the quarter ended September 30, 2015, compared with $62.8 million for the quarter ended September 30, 2014, an increase of $0.5 million or 0.9%. The ratio of net premiums written to gross premiums written was 72.5% for the quarter ended September 30, 2015 and 66.6% for the quarter ended September 30, 2014, an increase of 5.9 points.

Net premiums earned were $62.1 million for the quarter ended September 30, 2015, compared with $63.7 million for the quarter ended September 30, 2014, a decrease of $1.6 million or 2.5%. Property net premiums earned for the quarters ended September 30, 2015 and 2014 were $53.4 million and $54.8 million, respectively. Casualty net premiums earned were $8.8 million and $8.9 million for the quarters ended September 30, 2015 and 2014, respectively.

Other Income

Other income was $1.2 million for the quarter ended September 30, 2015, compared with $0.4 million for the quarter ended September 30, 2014. Other income is primarily comprised of fee income on policies issued and commission income and accrued interest on the anticipated indemnification of unpaid loss and loss adjustment expense reserves.

Net Losses and Loss Adjustment Expenses

The loss ratio for the Company’s Personal Lines was 78.7% for the quarter ended September 30, 2015 compared with 57.4% for the quarter ended September 30, 2014. The loss ratio is a GAAP financial measure that is generally viewed in the insurance industry as an indicator of underwriting profitability and is calculated by dividing net losses and loss adjustment expenses by net premiums earned.

The current accident year loss ratio for the quarter ended September 30, 2015 was 78.7%, an increase of 23.6 points from 55.1%, for the quarter ended September 30, 2014:

• The non-catastrophe loss ratio increased 4.2 points from 52.5% in the quarter ended September 30, 2014 to 56.7% in the quarter ended September 30, 2015. Non-catastrophe losses were $35.2 million and $33.5 million for the quarters ended September 30, 2015 and 2014, respectively.

• The catastrophe loss ratio increased 17.1 points from 4.9% in the quarter ended September 30, 2014 to 22.0% in the quarter ended September 30, 2015 mainly due to wild fires in California. Catastrophe losses were $13.7 million and $3.1 million for the quarters ended September 30, 2015 and 2014, respectively.

In the third quarter of 2015, the Company had no changes to prior accident year losses in Personal Lines. In 2014, losses related to prior years resulted in an increase in the loss ratio by 2.3 points. When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates.

Acquisition Costs and Other Underwriting Expenses

Acquisition costs and other underwriting expenses were $25.8 million for both the quarters ended September 30, 2015 and 2014.

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Expense and Combined Ratios

The expense ratio for the Company’s Personal Lines was 41.5% for the quarter ended September 30, 2015, compared with 40.4% for the quarter ended September 30, 2014. The expense ratio is a GAAP financial measure that is calculated by dividing the sum of acquisition costs and other underwriting expenses by net premiums earned.

The combined ratio for the Company’s Personal Lines was 120.2% for the quarter ended September 30, 2015, compared with 97.8% for the quarter ended September 30, 2014. The combined ratio is a GAAP financial measure and is the sum of the Company’s loss and expense ratios. See discussion of loss ratio included in “Net Losses and Loss Adjustment Expenses” above and discussion of expense ratio in preceding paragraph for an explanation of the increase.

Income (loss) from Segment

The factors described above resulted in loss from the Company’s Personal Lines of $11.4 million for the quarter ended September 30, 2015, compared to income of $1.8 million for the quarter ended September 30, 2014.

Commercial Lines

The components of income (loss) from the Company’s Commercial Lines segment and corresponding underwriting ratios are as follows:

(Dollars in thousands)	Quarters Ended September 30,					Increase / (Decrease)
	2015			2014		$			%
Gross premiums written	$	52,920		$	56,489	$	(3,569	)		(6.3	%)
Net premiums written	$	49,325		$	52,674	$	(3,349	)		(6.4	%)
Net premiums earned	$	48,916		$	52,462	$	(3,546	)		(6.8	%)
Other income		102			164		(62	)		(37.8	%)
Total revenues		49,018			52,626		(3,608	)		(6.9	%)
Losses and expenses:
Net losses and loss adjustment expenses		22,832			29,575		(6,743	)		(22.8	%)
Acquisition costs and other underwriting expenses (1)		20,686			21,790		(1,104	)		(5.1	%)
Income from segment	$	5,500		$	1,261	$	4,239			336.1	%
Underwriting Ratios:
Loss ratio:
Current accident year		61.6			56.3		5.3
Prior accident year		(14.9	)		0.0		(14.9	)
Calendar year loss ratio		46.7			56.3		(9.6	)
Expense ratio		42.3			41.5		0.8
Combined ratio		89.0			97.8		(8.8	)

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	Quarters Ended September 30,
	2015			2014
Reconciliation of Non-GAAP Measures
Combined ratio excluding the effect of prior accident year (2) (7)		103.9			97.8
Effect of prior accident year		(14.9	)		0.0
Combined ratio		89.0			97.8
Loss ratio excluding the effect of prior accident year (3) (7)		61.6			56.3
Effect of prior accident year		(14.9	)		0.0
Loss ratio		46.7			56.3
Property loss ratio excluding the effect of prior accident year (4) (7)		54.0			45.0
Effect of prior accident year		0.2			1.6
Property loss ratio		54.2			46.6
Casualty loss ratio excluding the effect of prior accident year (5) (7)		72.3			73.4
Effect of prior accident year		(36.1	)		(2.2	)
Casualty loss ratio		36.2			71.2
Non catastrophe property loss ratio excluding the effect of prior accident year (7) (8)		52.2			39.4
Effect of prior accident year		0.1			0.7
Non catastrophe property loss ratio		52.3			40.1
Catastrophe property loss ratio excluding the effect of prior accident year (7) (9)		1.8			5.7
Effect of prior accident year		0.2			0.8
Catastrophe property loss ratio		2.0			6.5
Non catastrophe property losses excluding the effect of prior accident year (7) (10)	$	14,878		$	12,424
Effect of prior accident year		14			221
Non catastrophe property losses	$	14,892		$	12,645
Catastrophe property losses excluding the effect of prior accident year (7) (11)	$	509		$	1,787
Effect of prior accident year		43			267
Catastrophe property losses	$	552		$	2,054
Net losses and loss adjustment expenses excluding the effects of prior accident year (6) (7)	$	30,143		$	29,552
Effect of prior accident year		(7,311	)		23
Net losses and loss adjustment expenses	$	22,832		$	29,575

(1) Includes excise tax of $258 and $277 related to cessions from the Company’s Commercial Lines to its Reinsurance Operations for the quarters ended September 30, 2015 and 2014, respectively.

(2) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the combined ratio.

(3) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the loss ratio.

(4) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the property loss ratio.

(5) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the casualty loss ratio.

(6) This is a non-GAAP measure that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the net losses and loss adjustment expenses.

(7) The Company believes that this non-GAAP ratio or measure is useful to investors when evaluating the Company’s underwriting performance as trends in the Company’s Commercial Lines may be obscured by prior accident year adjustments. This non-GAAP ratio should not be considered as a substitute for its most directly comparable GAAP measure and does not reflect the overall underwriting profitability of the Company.

(8) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the non-catastrophe property loss ratio.

(9) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the catastrophe property loss ratio.

(10) This is a non-GAAP measure that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the non-catastrophe property losses.

(11) This is a non-GAAP measure that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the catastrophe property losses.

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Premiums

The Company’s Commercial Lines’ gross written, net written, and net earned premiums by product line are as follows:

(Dollars in thousands)	Quarter Ended September 30, 2015						Quarter Ended September 30, 2014
	Gross Written		Net Written		Net Earned		Gross Written		Net Written		Net Earned
Small Business Binding Authority	$	30,038	$	29,272	$	27,077	$	31,180	$	29,811	$	27,663
Property Brokerage		7,003		5,220		7,444		9,028		7,775		8,149
Programs		14,985		13,878		13,276		15,060		14,032		14,160
Other		894		955		1,119		1,221		1,056		2,490
Total	$	52,920	$	49,325	$	48,916	$	56,489	$	52,674	$	52,462

Gross premiums written, which represent the amount received or to be received for insurance policies written without reduction for reinsurance costs or other deductions, was $52.9 million for the quarter ended September 30, 2015, compared with $56.5 million for the quarter ended September 30, 2014, a decrease of $3.6 million or 6.3%. The decrease is due to underwriting actions taken to improve profitability as well as the impact of a more competitive marketplace.

Net premiums written, which equal gross premiums written less ceded premiums written, were $49.3 million for the quarter ended September 30, 2015, compared with $52.7 million for the quarter ended September 30, 2014, a decrease of $3.3 million or 6.4%. The decrease in net premiums written is being driven by the reduction in gross premiums written, as noted above. The ratio of net premiums written to gross premiums written was 93.2% for both the quarters ended September 30, 2015 and September 30, 2014.

Net premiums earned were $48.9 million for the quarter ended September 30, 2015, compared with $52.5 million for the quarter ended September 30, 2014, a decrease of $3.5 million or 6.8%. The decline in net premiums earned was primarily due to a reduction of gross premiums written as noted above. Property net premiums earned for the quarters ended September 30, 2015 and 2014 were $28.5 million and $31.6 million, respectively. Casualty net premiums earned for the quarters ended September 30, 2015 and 2014 were $20.4 million and $20.9 million, respectively.

Other Income

Other income was $0.1 million and $0.2 million for the quarters ended September 30, 2015 and 2014, respectively. Other income is primarily comprised of fee income.

Net Losses and Loss Adjustment Expenses

The loss ratio for the Company’s Commercial Lines was 46.7% for the quarter ended September 30, 2015, an improvement of 9.6 points from 56.3% for the quarter ended September 30, 2014.

The current accident year loss ratio for the quarter ended September 30, 2015 was 61.6%, an increase of 5.3 points from 56.3%, for the quarter ended September 30, 2014:

• The current accident year property loss ratio increased 9.0 points from 45.0% in the quarter ended September 30, 2014 to 54.0% in the quarter ended September 30, 2015.

• The non-catastrophe loss ratio increased 12.8 points from 39.4% in the quarter ended September 30, 2014 to 52.2% in the quarter ended September 30, 2015 which is mainly attributable to one large fire loss in Florida. Non-catastrophe losses were $14.9 million and $12.4 million for the quarters ended September 30, 2015 and 2014, respectively.

• The catastrophe loss ratio improved by 3.9 points from 5.7% in the quarter ended September 30, 2014 to 1.8% in the quarter ended September 30, 2015. Catastrophe losses were $0.5 million and $1.8 million for the quarters ended September 30, 2015 and 2014, respectively.

• The current accident year casualty loss ratio improved 1.1 points from 73.4% in the quarter ended September 30, 2014 to 72.3% in the quarter ended September 30, 2015 which was driven by an effort to trim unprofitable business.

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In the third quarter of 2015, the Company decreased its prior accident year loss reserves by $7.3 million, which primarily consisted of the following:

• Professional: A $3.5 million decrease in aggregate primarily related to better than anticipated loss emergence in accident years 2006 through 2012.

• General Liability: A $3.8 million decrease in aggregate primarily related to accident years 1999 through 2013 primarily due to better than anticipated frequency and severity in construction defect.

In the third quarter of 2014, the Company increased its prior accident year loss reserves by $0.02 million, which primarily consisted of the following:

• General Liability: A $5.4 million increase primarily due to higher than anticipated loss emergence in recent accident years.

• Professional: A $6.4 million reduction is primarily due to lower than expected severity from accident years 2007 through 2011.

• Property: A $0.5 million increase primarily due to increased severity in accident years 2011 through 2013.

• Asbestos: $0.2 million increase primarily related to accident years prior to 1990 due to recent development on several claims.

• Other: A $0.3 million increase primarily due to accident years 2011 through 2013.

Net losses and loss adjustment expenses were $22.8 million for the quarter ended September 30, 2015, compared with $29.6 million for the quarter ended September 30, 2014, a decrease of $6.7 million or 22.8%. Excluding the impact of prior year adjustments, the current accident year net losses and loss adjustment expenses were $30.1 million and $29.6 million for the quarters ended September 30, 2015 and 2014, respectively, an increase of $0.6 million or 2.0%.

Acquisition Costs and Other Underwriting Expenses

Acquisition costs and other underwriting expenses were $20.7 million for the quarter ended September 30, 2015, compared with $21.8 million for the quarter ended September 30, 2014, a decrease of $1.1 million or 5.1%. This decrease is primarily due to certain costs which were allocated solely to Commercial Lines in 2014 now being allocated to both Commercial Lines and Personal Lines. In addition, commission expense is lower due to a reduction in net premiums earned as noted above.

Expense and Combined Ratios

The expense ratio for the Company’s Commercial Lines was 42.3% for the quarter ended September 30, 2015, compared with 41.5% for the quarter ended September 30, 2014.

The combined ratio for the Company’s Commercial Lines was 89.0% for the quarter ended September 30, 2015, compared with 97.8% for the quarter ended September 30, 2014. Excluding the impact of prior year adjustments, the current accident year combined ratio increased from 97.8% for the quarter ended September 30, 2014 to 103.9% for the quarter ended September 30, 2015. See discussion of loss ratio included in “Net Losses and Loss Adjustment Expenses” above and discussion of expense ratio in preceding paragraph for an explanation of the variance.

Income from Segment

The factors described above resulted in income from the Company’s Commercial Lines of $5.5 million for the quarter ended September 30, 2015, compared to income of $1.3 million for the quarter ended September 30, 2014.

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Reinsurance Operations

The components of income from the Company’s Reinsurance Operations segment and corresponding underwriting ratios are as follows:

	Quarters Ended September 30,						Increase / (Decrease)
(Dollars in thousands)	2015			2014			$			%
Gross premiums written	$	9,879		$	10,609		$	(730	)		(6.9	%)
Net premiums written	$	9,870		$	10,588		$	(718	)		(6.8	%)
Net premiums earned	$	13,659		$	15,566		$	(1,907	)		(12.3	%)
Other loss		(11	)		(38	)		27			(71.1	%)
Total revenues		13,648			15,528			(1,880	)		(12.1	%)
Losses and expenses:
Net losses and loss adjustment expenses		5,960			7,079			(1,119	)		(15.8	%)
Acquisition costs and other underwriting expenses		4,469			5,668			(1,199	)		(21.2	%)
Income from segment	$	3,219		$	2,781		$	438			15.8	%
Underwriting Ratios:
Loss ratio:
Current accident year		52.4			44.6			7.8
Prior accident year		(8.8	)		0.8			(9.6	)
Calendar year loss ratio		43.6			45.4			(1.8	)
Expense ratio		32.7			36.4			(3.7	)
Combined ratio		76.3			81.8			(5.5	)

Reconciliation of Non-GAAP Measures
Combined ratio excluding the effect of prior accident year (1) (4)		85.1			81.0
Effect of prior accident year		(8.8	)		0.8
Combined ratio		76.3			81.8
Loss ratio excluding the effect of prior accident year (2) (4)		52.4			44.6
Effect of prior accident year		(8.8	)		0.8
Loss ratio		43.6			45.4
Property loss ratio excluding the effect of prior accident year (4) (5)		51.4			42.7
Effect of prior accident year		(9.6	)		(22.4	)
Property loss ratio		41.8			20.3
Net losses and loss adjustment expenses excluding the effects of prior accident year (3) (4)	$	7,161		$	6,949
Effect of prior accident year		(1,201	)		130
Net losses and loss adjustment expenses	$	5,960		$	7,079

(1) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the combined ratio.

(2) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the loss ratio.

(3) This is a non-GAAP measure that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the net losses and loss adjustment expenses.

(4) The Company believes that this non-GAAP ratio or measure is useful to investors when evaluating the Company’s underwriting performance as trends in the Company’s reinsurance operations may be obscured by prior accident year adjustments. This non-GAAP ratio should not be considered as a substitute for its most directly comparable GAAP measure and does not reflect the overall underwriting profitability of the Company.

(5) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the property loss ratio.

Premiums

Gross premiums written, which represent the amount received or to be received for reinsurance agreements written without reduction for reinsurance costs or other deductions, were $9.9 million for the quarter ended September 30, 2015, compared

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with $10.6 million for the quarter ended September 30, 2014, a decrease of $0.7 million or 6.9%. This decrease is mainly due to competition in the property catastrophe reinsurance marketplace. The market is still very competitive due to excess capital resulting in property rates declining and smaller portfolios.

Net premiums written, which equal gross premiums written less ceded premiums written, were $9.9 million for the quarter ended September 30, 2015, compared with $10.6 million for the quarter ended September 30, 2014, a decrease of $0.7 million or 6.8%. This decrease is due to a decline in gross premiums written as noted above.

Net premiums earned were $13.7 million for the quarter ended September 30, 2015, compared with $15.6 million for the quarter ended September 30, 2014, a decrease of $1.9 million or 12.3%. Property net premiums earned for the quarters ended September 30, 2015 and 2014 were $12.5 million and $15.0 million, respectively. Casualty net premiums earned for the quarters ended September 30, 2015 and 2014 were $1.1 million and $0.5 million, respectively.

Other Loss

Other loss was comprised of losses of $0.01 million and $0.04 for the quarters ended September 30, 2015 and 2014, respectively. Other income (loss) represents foreign exchange gains and losses.

Net Losses and Loss Adjustment Expenses

The loss ratio for the Company’s Reinsurance Operations was 43.6% for the quarter ended September 30, 2015 compared with 45.4% for the quarter ended September 30, 2014.

The current accident year loss ratio increased 7.8 points from 44.6% for the quarter ended September 30, 2014 to 52.4% for the quarter ended September 30, 2015 primarily due to an increase in catastrophe losses as a result of the Tianjin explosion in China during the third quarter of 2015 which increased the loss ratio by 8.9 points. This increase was partially offset by an improvement in the casualty loss ratio.

There was a decrease in net losses and loss adjustment expenses for prior accident years of $1.2 million in the quarter ended September 30, 2015, which improved the loss ratio by 8.8 points, compared to an increase in net losses and loss adjustment expenses for prior accident years of $0.1 million in the quarter ended September 30, 2014 which increased the loss ratio by 0.8 points.

In the third quarter of 2015, the $1.2 million decrease in prior accident year loss reserves was primarily due improved results reported by the Company’s cedants on property catastrophe contracts for accident years 2009 to 2013.

In the third quarter of 2014, the $0.1 million increase in prior accident loss reserves primarily consisted of the following:

• Property: A $3.4 million reduction is due to less catastrophe losses than anticipated primarily from accident year 2013.

• Auto Liability: A $0.5 million increase due to increased severity primarily from accident years 2009 and 2010.

• Marine: A $3.0 million increase is primarily related to increased severity on accident years 2011 and 2012. These treaties are in runoff. Several claims have recently settled for amounts higher than expected.

Net losses and loss adjustment expenses were $6.0 million for the quarter ended September 30, 2015, compared with $7.1 million for the quarter ended September 30, 2014, a decrease of $1.1 million or 15.8%. Excluding the impact of prior year adjustments, the current accident year net losses and loss adjustment expenses increased from $6.9 million for the quarter ended September 30, 2014 to $7.2 million for the quarter ended September 30, 2015.

Acquisition Costs and Other Underwriting Expenses

Acquisition costs and other underwriting expenses were $4.5 million for the quarter ended September 30, 2015, compared with $5.7 million for the quarter ended September 30, 2014, a decrease of $1.2 million or 21.2%. This decrease is primarily due to a reduction in commission expense as a result of a slight decline in net premiums written as well as a reduction in contingent commissions as a result of higher losses during the quarter.

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Expense and Combined Ratios

The expense ratio for the Company’s Reinsurance Operations was 32.7% for the quarter ended September 30, 2015, compared to 36.4% for the quarter ended September 30, 2014. The improvement in the expense ratio is primarily due to a reduction in contingent commissions.

The combined ratio for the Company’s Reinsurance Operations was 76.3% for the quarter ended September 30, 2015, compared with 81.8% for the quarter ended September 30, 2014. Excluding the impact of prior accident year adjustments, the current accident year combined ratio increased from 81.0% for the quarter ended September 30, 2014 to 85.1% for the quarter ended September 30, 2015. See discussion of loss ratio included in “Net Losses and Loss Adjustment Expenses” above and discussion of expense ratio in preceding paragraph for an explanation of the increase.

Income from Segment

The factors described above resulted in income from the Company’s Reinsurance Operations of $3.2 million for the quarter ended September 30, 2015 compared to income of $2.8 million for the quarter ended September 30, 2014, an increase of $0.4 million.

Unallocated Corporate Items

The following items are not allocated to the Company’s Commercial Lines, Personal Lines, or Reinsurance Operations segments:

	Quarters Ended September 30,						Increase / (Decrease)
(Dollars in thousands)	2015			2014			$			%
Net investment income	$	8,852		$	6,527		$	2,325			35.6	%
Net realized investment gains (losses)		(10,778	)		1,158			(11,936	)		NM
Corporate and other operating expenses		(3,567	)		(3,481	)		86			2.5	%
Interest expense		(1,595	)		(118	)		1,477			NM
Income tax (expense) benefit		5,981			1,633			4,348			266.3	%

NM – not meaningful

Net Investment Income

Net investment income, which is gross investment income less investment expenses, was $8.9 million for the quarter ended September 30, 2015, compared with $6.5 million for the quarter ended September 30, 2014, an increase of $2.3 million or 35.6%.

• Gross investment income, which excludes realized gains and losses, was $9.6 million for the quarter ended September 30, 2015, compared with $7.6 million for the quarter ended September 30, 2014, an increase of $2.0 million or 26.6%. The increase was primarily due to the acquisition of American Reliable’s fixed income portfolio.

• Investment expenses were $0.7 million for the quarter ended September 30, 2015, compared with $1.1 million for the quarter ended September 30, 2014, a decrease of $0.3 million or 29.2%. The decrease is primarily due to a reduction of the Company’s equity portfolio during 2014.

At September 30, 2015, the Company held agency mortgage-backed securities with a book value of $121.9 million. Excluding the agency mortgage-backed securities, the average duration of the Company’s fixed maturities portfolio was 2.1 years as of September 30, 2015, compared with 2.0 years as of September 30, 2014. Including cash and short-term investments, the average duration of the Company’s fixed maturities portfolio, excluding agency mortgage-backed securities, was 1.9 years as of September 30, 2015 and September 30, 2014. Changes in interest rates can cause principal payments on certain investments to extend or shorten which can impact duration. The Company’s embedded book yield on its fixed maturities, not including cash, was 2.1% at September 30, 2015 and September 30, 2014. The embedded book yield on the $235.4 million of municipal bonds in the Company’s portfolio was 2.7% at September 30, 2015, compared to an embedded book yield of 2.8% on the Company’s municipal bond portfolio of $196.4 million at September 30, 2014.

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Net Realized Investment Gains (losses)

Net realized investment losses were $10.8 million for the quarter ended September 30, 2015, compared with gains of $1.2 million for the quarter ended September 30, 2014. The net realized investment losses for 2015 consist primarily of net losses of $1.3 million relative to the Company’s fixed maturities, $8.1 million relative to its interest rate swaps, other than temporary impairment losses of $4.6 million, offset by gains of $3.2 million relative to its equity securities. The net realized investment gains for 2014 consist primarily of net gains of $2.6 million relative to the Company’s equity securities, offset by losses of $0.2 million relative to its fixed maturities and $1.2 million relative to its interest rate swaps.

See Note 3 of the notes to the consolidated financial statements in Item 1 of Part I of this report for an analysis of total investment return on a pre-tax basis for the quarters ended September 30, 2015 and 2014.

Corporate and Other Operating Expenses

Corporate and other operating expenses consist of outside legal fees, other professional fees, directors’ fees, management fees, salaries and benefits for holding company personnel, development costs for new products, and taxes incurred which are not directly related to operations. Corporate and other operating expenses were $3.6 million for the quarter ended September 30, 2015, compared with $3.5 million for the quarter ended September 30, 2014, an increase of $0.1 million or 2.5%.

Interest Expense

Interest expense was $1.6 million and $0.1 million for the quarters ended September 30, 2015 and 2014, respectively, an increase of $1.5 million. This is primarily due to the new debt offering in August, 2015 as well as higher balances outstanding under the margin borrowing facilities in 2015 as compared to 2014. See Note 10 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2014 Annual Report on Form 10-K for details on the Company’s debt.

Income Tax Expense / Benefit

The income tax benefit was $6.0 million for the quarter ended September 30, 2015 compared to an income tax benefit of $1.6 million for the quarter ended September 30, 2014. See Note 6 of the notes to the consolidated financial statements in Item 1 of Part I of this report for a comparison of income tax benefit between periods.

Net Income (Loss)

The factors described above resulted in net loss of $3.7 million and net income of $9.8 million for the quarters ended September 30, 2015 and 2014, respectively, a decrease of $13.5 million or 138.4%.

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Nine Months Ended September 30, 2015 Compared with the Nine Months Ended September 30, 2014

Personal Lines

The components of income from the Company’s Personal Lines segment and corresponding underwriting ratios are as follows:

(Dollars in thousands)	Nine Months Ended September 30,						Increase / (Decrease)
	2015			2014 (1)			$			%
Gross premiums written	$	249,564		$	260,680		$	(11,116	)		(4.3	%)
Net premiums written	$	196,785		$	196,386		$	399			0.2	%
Net premiums earned	$	191,472		$	190,556		$	916			0.5	%
Other income		2,065			1,195			870			72.8	%
Total revenues		193,537			191,751			1,786			0.9	%
Losses and expenses:
Net losses and loss adjustment expenses		129,997			109,351			20,646			18.9	%
Acquisition costs and other underwriting expenses (2)		74,590			79,036			(4,446	)		(5.6	%)
Income (loss) from segment	$	(11,050	)	$	3,364		$	(14,414	)		(428.5	%)
Underwriting Ratios:
Loss ratio:
Current accident year		67.9			58.6			9.3
Prior accident year		0.0			(1.2	)		1.2
Calendar year loss ratio		67.9			57.4			10.5
Expense ratio		39.0			41.5			(2.5	)
Combined ratio		106.9			98.9			8.0

Reconciliation of Non-GAAP Measures
Loss ratio excluding the effect of prior accident year (3) (4)		67.9		58.6
Effect of prior accident year		0.0		(1.2	)
Loss ratio		67.9		57.4
Non catastrophe loss ratio excluding the effect of prior accident year (4) (5)		52.4		52.2
Effect of prior accident year		0.0		(1.2	)
Non catastrophe loss ratio		52.4		51.0
Non catastrophe losses excluding the effect of prior accident year (4) (6)	$	100,258	$	99,448
Effect of prior accident year		0		(2,307	)
Non catastrophe losses	$	100,258	$	97,141

(1) Represent unaudited pro forma results of operation for the nine months ended September 30, 2014 as if the acquisition had occurred on January 1, 2014 as opposed to January 1, 2015.

(2) Includes excise tax of $957 and $953 related to cessions from the Company’s Personal Lines to its Reinsurance Operations for the quarters ended September 30, 2015 and 2014, respectively.

(3) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the loss ratio.

(4) The Company believes that this non-GAAP ratio or measure is useful to investors when evaluating the Company’s underwriting performance as trends in the Company’s Personal Lines may be obscured by prior accident year adjustments. This non-GAAP ratio should not be considered as a substitute for its most directly comparable GAAP measure and does not reflect the overall underwriting profitability of the Company.

(5) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the non-catastrophe loss ratio.

(6) This is a non-GAAP measure that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the non-catastrophe losses.

Gross premiums written, which represent the amount received or to be received for insurance policies written without reduction for reinsurance costs or other deductions, were $249.6 million for the nine months ended September 30, 2015, compared with $260.7 million for the nine months ended September 30, 2014, a decrease of $11.1 million or 4.3%. The decrease is primarily due to a reduction in premiums on business written by American Reliable that is ceded to insurance entities owned by Assurant under a 100% quota share reinsurance agreement.

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Net premiums written, which equal gross premiums written less ceded premiums written, were $196.8 million for the nine months ended September 30, 2015, compared with $196.4 million for the nine months ended September 30, 2014, an increase of $0.4 million or 0.2%. The ratio of net premiums written to gross premiums written was 78.9% for the nine months ended September 30, 2015 and 75.3% for the nine month ended September 30, 2014, an increase of 3.6 points.

Net premiums earned were $191.5 million for the nine months ended September 30, 2015, compared with $190.6 million for the nine months ended September 30, 2014, an increase of $0.9 million or 0.5%. The growth in net premiums earned was primarily due to increases in net premiums written within the previous year. Property net premiums earned for the nine months ended September 30, 2015 and 2014 were $164.7 million and $163.9 million, respectively. Casualty net premiums earned were $26.8 million and $26.7 million for the nine month ended September 30, 2015 and 2014, respectively.

Other Income

Other income was $2.1 million and $1.2 million for the nine month ended September 30, 2015 and 2014, respectively. Other income is primarily comprised of fee income on policies issued and commission income and accrued interest on the anticipated indemnification of unpaid loss and loss adjustment expense reserves.

Net Losses and Loss Adjustment Expenses

The loss ratio for the Company’s Personal Lines was 67.9% for the nine months ended September 30, 2015 compared with 57.4% for the nine months ended September 30, 2014.

The current accident year loss ratio for the nine months ended September 30, 2015 was 67.9%, an increase of 9.3 points from 58.6%, for the nine months ended September 30, 2014:

• The non-catastrophe loss ratio increased 0.2 points from 52.2% in the nine months ended September 30, 2014 to 52.4% in the nine months ended September 30, 2015. Non-catastrophe losses were $100.3 million and $99.4 million for the nine months ended September 30, 2015 and 2014, respectively.

• The catastrophe loss ratio increased 9.1 points from 6.4% in the nine months ended September 30, 2014 to 15.5% in the nine months ended September 30, 2015 mainly due to wild fires in California. Catastrophe losses were $29.7 million and $12.2 million for the nine months ended September 30, 2015 and 2014, respectively.

For the nine months ended September 30, 2015, the Company had no changes to prior accident year losses. In 2014, losses related to prior years resulted in a decrease in the loss ratio by 1.2 points.

Acquisition Costs and Other Underwriting Expenses

Acquisition costs and other underwriting expenses were $74.6 million for the nine months ended September 30, 2015, compared with $79.0 million for the nine months ended September 30, 2014, a decrease of $4.4 million or 5.6%. The decrease is primarily due to impact on underwriting expenses from the acquisition date adjustments to fair value of deferred acquisition costs and intangible assets.

Expense and Combined Ratios

The expense ratio for the Company’s Personal Lines was 39.0% for the nine months ended September 30, 2015, compared with 41.5% for the nine months ended September 30, 2014. The decrease in the expense ratio is primarily due to impact on underwriting expenses from the acquisition date adjustments to fair value of deferred acquisition costs and intangible assets.

The combined ratio for the Company’s Personal Lines was 106.9% for the nine months ended September 30, 2015, compared with 98.9% for the nine months ended September 30, 2014. See discussion of loss ratio included in “Net Losses and Loss Adjustment Expenses” above and discussion of expense ratio in preceding paragraph for an explanation of the increase.

Income (loss) from Segment

The factors described above resulted in loss from the Company’s Personal Lines of $11.1 million for the nine months ended September 30, 2015, compared to income of $3.4 million for the nine months ended September 30, 2014.

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GLOBAL INDEMNITY PLC

Commercial Lines

The components of income (loss) from the Company’s Commercial Lines’ segment and corresponding underwriting ratios are as follows:

(Dollars in thousands)	Nine Months Ended September 30,						Increase / (Decrease)
	2015			2014			$			%
Gross premiums written	$	161,746		$	170,037		$	(8,291	)		(4.9	%)
Net premiums written	$	149,647		$	156,369		$	(6,722	)		(4.3	%)
Net premiums earned	$	149,244		$	158,809		$	(9,565	)		(6.0	%)
Other income		420			490			(70	)		(14.3	%)
Total revenues		149,664			159,299			(9,635	)		(6.0	%)
Losses and expenses:
Net losses and loss adjustment expenses		82,474			97,047			(14,573	)		(15.0	%)
Acquisition costs and other underwriting expenses (1)		61,317			66,068			(4,751	)		(7.2	%)
Income (loss) from segment	$	5,873		$	(3,816	)	$	9,689			(253.9	%)
Underwriting Ratios:
Loss ratio:
Current accident year		63.9			64.3			(0.4	)
Prior accident year		(8.7	)		(3.1	)		(5.6	)
Calendar year loss ratio		55.2			61.2			(6.0	)
Expense ratio		41.1			41.6			(0.5	)
Combined ratio		96.3			102.8			(6.5	)

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	Nine Months Ended September 30,
	2015			2014
Reconciliation of Non-GAAP Measures
Combined ratio excluding the effect of prior accident year (2) (7)		105.0			105.9
Effect of prior accident year		(8.7	)		(3.1	)
Combined ratio		96.3			102.8
Loss ratio excluding the effect of prior accident year (3) (7)		63.9			64.3
Effect of prior accident year		(8.7	)		(3.1	)
Loss ratio		55.2			61.2
Property loss ratio excluding the effect of prior accident year (4) (7)		58.9			58.2
Effect of prior accident year		(0.9	)		0.6
Property loss ratio		58.0			58.8
Casualty loss ratio excluding the effect of prior accident year (5) (7)		71.5			73.2
Effect of prior accident year		(20.4	)		(8.8	)
Casualty loss ratio		51.1			64.4
Non catastrophe property loss ratio excluding the effect of prior accident year (7) (8)		46.7			42.4
Effect of prior accident year		(1.1	)		0.2
Non catastrophe property loss ratio		45.6			42.6
Catastrophe property loss ratio excluding the effect of prior accident year (7) (9)		12.2			15.8
Effect of prior accident year		0.3			0.4
Catastrophe property loss ratio		12.5			16.2
Non catastrophe property losses excluding the effect of prior accident year (7) (10)	$	41,899		$	40,184
Effect of prior accident year		(1,012	)		156
Non catastrophe property losses	$	40,887		$	40,340
Catastrophe property losses excluding the effect of prior accident year (7) (11)	$	10,917		$	14,947
Effect of prior accident year		249			455
Catastrophe property losses	$	11,166		$	15,402
Net losses and loss adjustment expenses excluding the effects of prior accident year (6) (7)	$	95,392		$	102,044
Effect of prior accident year		(12,918	)		(4,997	)
Net losses and loss adjustment expenses	$	82,474		$	97,047

(1) Includes excise tax of $787 and $838 related to cessions from the Company’s Commercial Lines to its Reinsurance Operations for the nine months ended September 30, 2015 and 2014, respectively.

(2) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the combined ratio.

(3) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the loss ratio.

(4) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the property loss ratio.

(5) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the casualty loss ratio.

(6) This is a non-GAAP measure that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the net losses and loss adjustment expenses.

(7) The Company believes that this non-GAAP ratio or measure is useful to investors when evaluating the Company’s underwriting performance as trends in the Company’s Commercial Lines may be obscured by prior accident year adjustments. This non-GAAP ratio should not be considered as a substitute for its most directly comparable GAAP measure and does not reflect the overall underwriting profitability of the Company.

(8) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the non-catastrophe property loss ratio.

(9) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the catastrophe property loss ratio.

(10) This is a non-GAAP measure that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the non-catastrophe property losses.

(11) This is a non-GAAP measure that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the catastrophe property losses.

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Premiums

The Company’s Commercial Lines’ gross written, net written, and net earned premiums by product line are as follows:

(Dollars in thousands)	Nine Months Ended September 30, 2015						Nine Months Ended September 30, 2014
	Gross Written		Net Written		Net Earned		Gross Written		Net Written		Net Earned
Small Business Binding Authority	$	86,434	$	83,083	$	81,287	$	87,321	$	82,775	$	80,517
Property Brokerage		28,697		23,501		24,638		31,264		26,311		24,664
Programs		43,566		40,142		39,908		47,115		43,397		42,455
Other		3,049		2,921		3,411		4,337		3,886		11,173
Total	$	161,746	$	149,647	$	149,244	$	170,037	$	156,369	$	158,809

Gross premiums written, which represent the amount received or to be received for insurance policies written without reduction for reinsurance costs or other deductions, were $161.7 million for the nine months ended September 30, 2015, compared with $170.0 million for the nine months ended September 30, 2014, a decrease of $8.3 million or 4.9%. The decrease is the result of underwriting actions taken to improve profitability as well as the impact of a more competitive marketplace.

Net premiums written, which equal gross premiums written less ceded premiums written, were $149.6 million for the nine months ended September 30, 2015, compared with $156.4 million for the nine months ended September 30, 2014, a decrease of $6.7 million or 4.3%. The decrease was primarily due to the reduction in gross premiums written as noted above partially offset by a slight increase in retention. The ratio of net premiums written to gross premiums written was 92.5% for the nine month ended September 30, 2015 and 92.0% for the nine months ended September 30, 2014, an increase of 0.5%.

Net premiums earned were $149.2 million for the nine months ended September 30, 2015, compared with $158.8 million for the nine months ended September 30, 2014, a decrease of $9.6 million or 6.0%. The decline in net premiums earned was primarily due to a reduction of gross premiums written as noted above. Property net premiums earned for the nine months ended September 30, 2015 and 2014 were $89.7 million and $94.7 million, respectively. Casualty net premiums earned for the nine months ended September 30, 2015 and 2014 were $59.6 million and $64.1 million, respectively.

Other Income

Other income was $0.4 million and $0.5 million for the nine months ended September 30, 2015 and 2014, respectively. Other income is primarily comprised of fee income.

Net Losses and Loss Adjustment Expenses

The loss ratio for the Company’s Commercial Lines was 55.2% for the nine months ended September 30, 2015 compared with 61.2% for the nine months ended September 30, 2014.

The current accident year loss ratio for the nine months ended September 30, 2015 was 63.9%, a decrease of 0.4 points from 64.3%, for the nine months ended September 30, 2014:

• The current accident year property loss ratio increased by 0.7 points from 58.2% in the nine months ended September 30, 2014 to 58.9% in the nine months ended September 30, 2015.

• The non-catastrophe loss ratio increased 4.3 points from 42.4% in the nine months ended September 30, 2014 to 46.7% in the nine months ended September 30, 2015 which is mainly attributable to one large fire loss in Florida. Non-catastrophe losses were $41.9 million and $40.2 million for the nine months ended September 30, 2015 and 2014, respectively.

• The catastrophe loss ratio improved by 3.6 points from 15.8% in the nine months ended September 30, 2014 to 12.2% in the nine months ended September 30, 2015. Catastrophe losses were $10.9 million and $14.9 million for the nine months ended September 30, 2015 and 2014, respectively.

• The current accident year casualty loss ratio improved by 1.7 points from 73.2% in the nine months ended September 30, 2014 to 71.5% in the nine months ended September 30, 2015. During the last several years, rates were increased and unprofitable business was not renewed contributing to this improvement.

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GLOBAL INDEMNITY PLC

In the first nine months of 2015, the Company reduced its prior accident year loss reserves by $12.9 million, which primarily consisted of the following:

• Property: A $0.8 million decrease in aggregate primary related to better than anticipated loss emergence in the 2011 through 2014 accident years.

• Umbrella: $0.3 million decrease primarily related to accident years 2003 through 2005 as a result of better than anticipated loss emergence.

• Professional: $6.4 million decrease in aggregate primarily related to better than anticipated frequency in accident years 2006 through 2012.

• General Liability: A $5.7 million decrease in aggregate primarily related to accident years prior to 2013 due to better than anticipated frequency and severity in construction defect.

In the first nine months of 2014, the Company reduced its prior accident year loss reserves by $5.0 million, which primarily consisted of the following:

• Property: A $0.7 million increase primarily due to increased severity in accident years 2007, 2012, and 2013.

• General Liability: A $5.3 million increase primarily due to higher than anticipated loss emergence in recent accident years.

• Professional: A $18.1 million reduction due to lower than expected severity primarily from accident years 2007 through 2011.

• Asbestos: $7.1 million increase primarily related to accident years prior to 1990 due to recent development on several claims.

Net losses and loss adjustment expenses were $82.5 million for the nine months ended September 30, 2015, compared with $97.0 million for the nine months ended September 30, 2014, a decrease of $14.6 million or 15.0%. Excluding the impact of prior year adjustments, the current accident year net losses and loss adjustment expenses were $95.4 million and $102.0 million for the nine months ended September 30, 2015 and 2014, respectively, a decrease of $6.7 million or 6.5%. This decrease is primarily attributable to a reduction in earned premium volume for commercial automobile. In addition, catastrophe losses are lower in 2015 due to a decrease in the severity of the storms compared to 2014.

Acquisition Costs and Other Underwriting Expenses

Acquisition costs and other underwriting expenses were $61.3 million for the nine months ended September 30, 2015, compared with $66.1 million for the nine months ended September 30, 2014, a decrease of $4.8 million or 7.2%. This decrease is primarily due to certain costs which were allocated solely to Commercial Lines in 2014 now being allocated to both Commercial Lines and Personal Lines. In addition, commission expense is lower due to a reduction in net premiums earned as noted above.

Expense and Combined Ratios

The expense ratio for the Company’s Commercial Lines was 41.1% for the nine months ended September 30, 2015, compared with 41.6% for the nine months ended September 30, 2014. This decrease is primarily due to certain costs which were allocated solely to Commercial Lines in 2014 now being allocated to both Commercial Lines and Personal Lines.

The combined ratio for the Company’s Commercial Lines was 96.3% for the nine months ended September 30, 2015, compared with 102.8% for the nine months ended September 30, 2014. Excluding the impact of prior year adjustments, the current accident year combined ratio improved from 105.9% for the nine months ended September 30, 2014 to 105.0% for the nine months ended September 30, 2015. See discussion of loss ratio included in “Net Losses and Loss Adjustment Expenses” above and discussion of expense ratio in preceding paragraph for an explanation of the decrease.

Income (Loss) from Segment

The factors described above resulted in income from the Company’s Commercial Lines of $5.9 million for the nine months ended September 30, 2015, compared to a loss of $3.8 million for the nine months ended September 30, 2014.

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GLOBAL INDEMNITY PLC

Reinsurance Operations

The components of income from the Company’s Reinsurance Operations segment and corresponding underwriting ratios are as follows:

	Nine Months Ended September 30,						Increase / (Decrease)
(Dollars in thousands)	2015			2014			$			%
Gross premiums written	$	48,222		$	57,163		$	(8,941	)		(15.6	%)
Net premiums written	$	48,174		$	56,126		$	(7,952	)		(14.2	%)
Net premiums earned	$	40,205		$	42,780		$	(2,575	)		(6.0	%)
Other loss		(77	)		(41	)		(36	)		87.8	%
Total revenues		40,128			42,739			(2,611	)		(6.1	%)
Losses and expenses:
Net losses and loss adjustment expenses		14,399			16,449			(2,050	)		(12.5	%)
Acquisition costs and other underwriting expenses		14,211			15,046			(835	)		(5.5	%)
Income from segment	$	11,518		$	11,244		$	274			2.4	%
Underwriting Ratios:
Loss ratio:
Current accident year		46.4			40.7			5.7
Prior accident year		(10.6	)		(2.3	)		(8.3	)
Calendar year loss ratio		35.8			38.4			(2.6	)
Expense ratio		35.3			35.2			0.1
Combined ratio		71.1			73.6			(2.5	)

	Nine Months Ended September 30,
	2015			2014
Reconciliation of Non-GAAP Measures
Combined ratio excluding the effect of prior accident year (1) (4)		81.7			75.9
Effect of prior accident year		(10.6	)		(2.3	)
Combined ratio		71.1			73.6
Loss ratio excluding the effect of prior accident year (2) (4)		46.4			40.7
Effect of prior accident year		(10.6	)		(2.3	)
Loss ratio		35.8			38.4
Property loss ratio excluding the effect of prior accident year (4) (5)		43.3			38.9
Effect of prior accident year		(10.8	)		(11.5	)
Property loss ratio		32.5			27.4
Net losses and loss adjustment expenses excluding the effects of prior accident year (3) (4)	$	18,652		$	17,421
Effect of prior accident year		(4,253	)		(972	)
Net losses and loss adjustment expenses	$	14,399		$	16,449

(1) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the combined ratio.

(2) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the loss ratio.

(3) This is a non-GAAP measure that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the net losses and loss adjustment expenses.

(4) The Company believes that this non-GAAP ratio or measure is useful to investors when evaluating the Company’s underwriting performance as trends in the Company’s reinsurance operations may be obscured by prior accident year adjustments. This non-GAAP ratio should not be considered as a substitute for its most directly comparable GAAP measure and does not reflect the overall underwriting profitability of the Company.

(5) This is a non-GAAP ratio that excludes the impact of prior accident year adjustments. The most directly comparable GAAP measure is the property loss ratio.

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GLOBAL INDEMNITY PLC

Premiums

Gross premiums written, which represent the amount received or to be received for reinsurance agreements written without reduction for reinsurance costs or other deductions, were $48.2 million for the nine months ended September 30, 2015, compared with $57.2 million for the nine months ended September 30, 2014, a decrease of $8.9 million or 15.6%. This decrease is mainly due to competition in the property catastrophe reinsurance marketplace. The market is still very competitive due to excess capital resulting in property rates declining and smaller portfolios.

Net premiums written, which equal gross premiums written less ceded premiums written, were $48.2 million for the nine months ended September 30, 2015, compared with $56.1 million for the nine months ended September 30, 2014, a decrease of $8.0 million or 14.2%. This decrease is due to a decline in gross premiums written as noted above.

Net premiums earned were $40.2 million for the nine months ended September 30, 2015, compared with $42.8 million for the nine months ended September 30, 2014, a decrease of $2.6 million or 6.0%. Property net premiums earned for the nine months ended September 30, 2015 and 2014 were $38.3 million and $41.1 million, respectively. Casualty net premiums earned for the nine months ended September 30, 2015 and 2014 were $1.9 million and $1.6 million, respectively.

Other Loss

The Company recognized losses of $0.08 million and $0.04 million for the nine months ended September 30, 2015 and 2014, respectively. Other loss is comprised of foreign exchange gains and losses.

Net Losses and Loss Adjustment Expenses

The loss ratio for the Company’s Reinsurance Operations was 35.8% for the nine months ended September 30, 2015 compared with 38.4% for the nine months ended September 30, 2014.

The current accident year loss ratio increased 5.7 points from 40.7% for the nine months ended September 30, 2014 to 46.4% for the nine months ended September 30, 2015 primarily due to slightly higher premium volume in professional lines which has a higher loss ratio than property as well as higher catastrophe losses due to the Tianjin explosion in China. The property lines current accident year loss ratio increased to 43.3% for the nine months ended September 30, 2015 from 38.9% for the nine months ended September 30, 2014.

There was a decrease in net losses and loss adjustment expenses for prior accident years of $4.3 million in the nine months ended September 30, 2015 which decreased the loss ratio by 10.6 points compared to a decrease in net losses and loss adjustment expenses for prior accident years of $1.0 million in the nine months ended September 30, 2014 which decreased the loss ratio 2.3 points.

The $4.3 million reduction in prior accident year loss reserves in 2015 was primarily due to improved results reported by the Company’s cedants on property contracts for accident years 2009 through 2014.

In the first nine months of 2014, the Company reduced its prior accident year loss reserves by $1.0 million, which primarily consisted of the following:

• Property: A $4.7 million reduction driven by less catastrophe losses than anticipated primarily from accident years 2012 and 2013.

• Marine: A $3.0 million increase primarily related to increased severity from accident years 2011 and 2012. These treaties are in runoff. Several claims have recently settled for amounts higher than expected.

• Commercial Auto: $0.7 million increase is primarily due to increased severity primarily from accident years 2009 and 2010.

Net losses and loss adjustment expenses were $14.4 million for the nine months ended September 30, 2015, compared with $16.4 million for the nine months ended September 30, 2014, a decrease of $2.1 million or 12.5%. Excluding the impact of prior year adjustments, the current accident year net losses and loss adjustment expenses increased from $17.4 million for the nine months ended September 30, 2014 to $18.7 million for the nine months ended September 30, 2015. This is primarily attributable to a slight change in business mix.

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GLOBAL INDEMNITY PLC

Acquisition Costs and Other Underwriting Expenses

Acquisition costs and other underwriting expenses were $14.2 million for the nine months ended September 30, 2015 compared with $15.0 million for the nine months ended September 30, 2014, a decrease of $0.8 million or 5.5%. The decrease is primarily due to a lower premium base and a reduction in contingent commissions due to an increase in current accident year losses.

Expense and Combined Ratios

The expense ratio for the Company’s Reinsurance Operations was 35.3% for the nine months ended September 30, 2015, compared with 35.2% for the nine months ended September 30, 2014.

The combined ratio for the Company’s Reinsurance Operations was 71.1% for the nine months ended September 30, 2015, compared with 73.6% for the nine months ended September 30, 2014. Excluding the impact of prior accident year adjustments, the current accident year combined ratio increased from 75.9% for the nine months ended September 30, 2014 to 81.7% for the nine months ended September 30, 2015. See discussion of loss ratio included in “Net Losses and Loss Adjustment Expenses” above and a discussion of expense ratio in preceding paragraph for an explanation of the variance.

Income from Segment

The factors described above resulted in income from the Company’s Reinsurance Operations of $11.5 million for the nine months ended September 30, 2015 compared to income of $11.2 million for the nine months ended September 30, 2014, an increase of $0.3 million or 2.4%.

Unallocated Corporate Items

The following items are not allocated to the Company’s Personal Lines, Commercial Lines, or Reinsurance Operations segments:

	Nine Months Ended September 30,						Increase / (Decrease)
(Dollars in thousands)	2015			2014			$			%
Net investment income	$	26,234		$	22,488		$	3,746			16.7	%
Net realized investment gains (losses)		(7,216	)		40,226			(47,442	)		(117.9	%)
Corporate and other operating expenses		(19,441	)		(9,614	)		9,827			102.2	%
Interest expense		(2,635	)		(628	)		2,007			319.6	%
Income tax (expense) benefit		10,882			(8,108	)		(18,990	)		(234.2	%)

Net Investment Income

Net investment income, which is gross investment income less investment expenses, was $26.2 million for the nine months ended September 30, 2015, compared with $22.5 million for the nine months ended September 30, 2014, an increase of $3.7 million or 16.7%.

• Gross investment income, which excludes realized gains and losses, was $28.7 million for the nine months ended September 30, 2015, compared with $25.8 million for the nine months ended September 30, 2014, an increase of $2.9 million or 11.2%. The increase was primarily due to gross investment income related to limited partnership investments and the acquisition of American Reliable’s fixed income portfolio.

• Investment expenses were $2.5 million for the nine months ended September 30, 2015, compared with $3.3 million for the nine months ended September 2014, a decrease of $0.9 million or 25.6%. The decrease is primarily due to a reduction of the Company’s equity portfolio during 2014.

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GLOBAL INDEMNITY PLC

Please see the discussion of Net Investment Income in the quarter to quarter comparison above for a discussion of average duration and embedded book yield.

Net Realized Investment Gains (Losses)

Net realized investment losses were $7.2 million for the nine months ended September 30, 2015, compared with gains of $40.2 million for the nine months ended September 30, 2014. The net realized investment losses for 2015 consist primarily of net losses of $0.1 million relative to the Company’s fixed maturities, $8.9 million related to its interest rate swaps, other than temporary impairment losses of $6.9 million, offset by gains of $8.7 million relative to its equity securities. The net realized investment gains for 2014 consist primarily of net gains of $2.0 million relative to the Company’s fixed maturities, $51.8 million relative to its equity securities, offset by losses of $13.6 million related to its interest rate swaps.

See Note 3 of the notes to the consolidated financial statements in Item 1 of Part I of this report for an analysis of total investment return on a pre-tax basis for the nine months ended September 30, 2015 and 2014.

Corporate and Other Operating Expenses

Corporate and other operating expenses consist of outside legal fees, other professional fees, directors’ fees, management fees, salaries and benefits for holding company personnel, development costs for new products, and taxes incurred which are not directly related to operations. Corporate and other operating expenses were $19.4 million for the nine months ended September 30, 2015, compared with $9.6 million for the nine months ended September 30, 2014, an increase of $9.8 million or 102.2%. The increase is primarily due to incurring cost of approximately $8.3 million in connection with the acquisition of American Reliable Insurance Company.

Interest Expense

Interest expense was $2.6 million and $0.6 million for the nine months ended September 30, 2015 and 2014, respectively, an increase of $2.0 million or 319.6 %. This is primarily due to the new debt offering in August, 2015 as well as higher balances outstanding under the margin borrowing facilities in 2015 as compared to 2014. See Note 13 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2014 Annual Report on Form 10-K for details on the Company’s debt.

Income Tax Expense (Benefit)

The income tax benefit was $10.9 million for the nine months ended September 30, 2015 compared to an income tax expense of $8.1 million for the nine months ended September 30, 2014. See Note 6 of the notes to the consolidated financial statements in Item 1 of Part I of this report for a comparison of income tax between periods.

Net Income

The factors described above resulted in net income of $14.2 million and $51.8 million for the nine months ended September 30, 2015 and 2014, respectively, a decrease of $37.6 million or 72.7%.

Liquidity and Capital Resources

Sources and Uses of Funds

Global Indemnity is a holding company. Its principal asset is its ownership of the shares of its direct and indirect subsidiaries, including those of its U.S. insurance companies: United National Insurance Company, Diamond State Insurance Company, United National Specialty Insurance Company, Penn-America Insurance Company, Penn-Star Insurance Company, Penn-Patriot Insurance Company, and American Reliable Insurance Company; and its Reinsurance Operations: Global Indemnity Reinsurance.

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GLOBAL INDEMNITY PLC

The principal source of cash that Global Indemnity requires to meet its short term and long term liquidity needs, including the payment of corporate expenses and share repurchases includes dividends, other permitted disbursements from its direct and indirect subsidiaries, reimbursement for equity awards granted to employees and intercompany borrowings. The principal sources of funds at these direct and indirect subsidiaries include underwriting operations, investment income, and proceeds from sales and redemptions of investments. Funds are used principally by these operating subsidiaries to pay claims and operating expenses, to make debt payments, fund margin requirements on interest rate swap agreements, to purchase investments, and to make dividend payments. The future liquidity of Global Indemnity is dependent on the ability of its subsidiaries to pay dividends.

On October 29, 2015, Global Indemnity entered into a redemption agreement with certain affiliates of Fox Paine & Company, LLC and agreed to redeem 8,260,870 of its ordinary shares for $190 million in the aggregate from affiliates of Fox Paine & Company, LLC. Global Indemnity also acquired rights, expiring year end 2019, to redeem an additional 3,376,561 Ordinary Shares for $77,660,903, which amount is subject to an annual 3% increase. The Company is in discussions with affiliates of Fox Paine to acquire rights to redeem a further 1,146,716 ordinary shares on the same terms as the 3,376,561 share redemption rights. Other than these redemption requirements, Global Indemnity has no commitments that could have a material impact on its short-term or long-term liquidity needs.

Global Indemnity’s U.S. insurance companies are restricted by statute as to the amount of dividends that they may pay without the prior approval of regulatory authorities. The dividend limitations imposed by state laws are based on the statutory financial results of each insurance company within the Insurance Operations that are determined by using statutory accounting practices that differ in various respects from accounting principles used in financial statements prepared in conformity with GAAP. See “Regulation—Statutory Accounting Principles” in Item 1 of Part I of the Company’s 2014 Annual Report on Form 10-K. Key differences relate to, among other items, deferred acquisition costs, limitations on deferred income taxes, reserve calculation assumptions and surplus notes. On January 23, 2014, the U.S. insurance companies paid an extraordinary dividend to Global Indemnity Group, Inc. that aggregated to $200 million. The U.S. insurance companies, excluding American Reliable, were restricted from paying a dividend until after January 23, 2015 without regulatory approval. No dividends were declared or paid during the quarter or nine months ended September 30, 2015. See Note 17 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2014 Annual Report on Form 10-K for further information on dividend limitations related to the U.S. Insurance Companies, excluding American Reliable. See Note 2 of the notes to consolidated financial statements in Item 1 of Part I of this report for dividend limitations related to American Reliable.

For 2015, the Company believes that Global Indemnity Reinsurance, including distributions it could receive from its subsidiaries, should have sufficient liquidity and solvency to pay dividends. Global Indemnity Reinsurance is prohibited, without the approval of the Bermuda Monetary Authority (“BMA”), from reducing by 15% or more its total statutory capital as set out in its previous year’s statutory financial statements, and any application for such approval must include such information as the BMA may require. See “Regulation—Bermuda Insurance Regulation” in Item 1 of Part I of the Company’s 2014 Annual Report on Form 10-K. Global Indemnity Reinsurance did not declare or pay any dividends during the quarter or nine months ended September 30, 2015.

Cash Flows

Sources of operating funds consist primarily of net premiums written and investment income. Funds are used primarily to pay claims and operating expenses and to purchase investments.

The Company’s reconciliation of net income to cash used for operations is generally influenced by the following:

• the fact that the Company collects premiums, net of commissions, in advance of losses paid;

• the timing of the Company’s settlements with its reinsurers; and

• the timing of the Company’s loss payments.

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GLOBAL INDEMNITY PLC

Net cash used by operating activities was $1.2 million for the nine months ended September 30, 2015 and the net cash used for operating activities was $7.1 million for the nine months ended September 30, 2014. The increase in operating cash flows of approximately $5.8 million from the prior year was primarily a net result of the following items:

	Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			Change
Net premiums collected	$	404,157		$	195,238		$	208,919
Net losses paid		(256,949	)		(133,337	)		(123,612	)
Underwriting and corporate expenses		(181,893	)		(90,820	)		(91,073	)
Net investment income		35,057			28,683			6,374
Net federal income taxes paid		(94	)		(6,171	)		6,077
Interest paid		(1,484	)		(654	)		(830	)
Net cash used for operating activities	$	(1,206	)(1)	$	(7,061	)	$	5,855

(1) The net cash used for operating activities for the nine months ended September 30, 2015 was negatively impacted in the amount of $23.8 million due to the commutation of a policy with one of Global Indemnity Reinsurance’s cedants. The commutation of this policy had no impact on net income.

See the consolidated statement of cash flows in the consolidated financial statements in Item 1 of Part I of this report for details concerning the Company’s investing and financing activities.

Liquidity

On August 12, 2015, the Company issued Subordinated Notes due in 2045 in the aggregate principal amount of $100.0 million through an underwritten public offering. See Note 8 of the notes to the consolidated financial statements in Item 1 of Part I for additional information on this debt issuance.

On October 29, 2015, Global Indemnity entered into a redemption agreement with certain affiliates of Fox Paine & Company, LLC and agreed to redeem 8,260,870 of its ordinary shares for $190 million in the aggregate from affiliates of Fox Paine & Company, LLC. Global Indemnity also acquired rights, expiring year end 2019, to redeem an additional 3,376,561 Ordinary Shares for $77,660,903, which amount is subject to an annual 3% increase. The Company is in discussions with affiliates of Fox Paine to acquire rights to redeem a further 1,146,716 ordinary shares on the same terms as the 3,376,561 share redemption rights. After giving effect to the share redemptions and regardless of whether or not the additional redemption rights are exercised, affiliates of Fox Paine will continue to have the ability to cast a majority of votes on matters submitted to Global Indemnity shareholders for approval.

In connection with the redemption, the Company sold $279.9 million of securities from its consolidated investment portfolio during October, 2015, which resulted in a realized gain of $1.6 million. $102.0 million was used to pay down margin debt, with the remainder being used to fund a portion of the redemption transaction.

Other than the items discussed in the preceding paragraphs, there have been no material changes to the Company’s liquidity during the nine months ended September 30, 2015. Please see Item 7 of Part II in the Company’s 2014 Annual Report on Form 10-K for information regarding the Company’s liquidity.

Capital Resources

On July 2, 2015, the Company filed a registration statement on Form S-3 that allows the Company to offer and sell stock, debt, and other instruments that have an aggregate initial offering price of up to $500 million in one or more offerings. The Company may from time to time issue securities pursuant to the shelf registration statement or otherwise pursuant to private offerings. The issuance of debt or equity securities will depend on future market conditions, funding needs and other factors and there can be no assurance that any such issuance will occur.

In August, 2015, Global Indemnity plc advanced an interest free loan to Global Indemnity (Cayman) Limited in the amount of $96.9 million. This loan is due on demand.

In September, 2015, U.A.I. (Luxembourg) Investment S.à.r.l. increased the demand line of credit that it previously issued to Global Indemnity (Cayman) Limited from $125.0 million to $225.0 million. As of September 30, 2015, Global Indemnity (Cayman) Limited owed U.A.I. (Luxembourg) Investment S.à.r.l. $102.5 million under this arrangement, with accrued interest of $4.3 million.

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GLOBAL INDEMNITY PLC

Global Indemnity (Cayman) Limited made a capital contribution in the amount of $100.0 million during the fourth quarter of 2015. Through a series of capital contributions, the ultimate recipient of this capital contribution of $100.0 million was U.A.I. (Luxembourg) Investment S.à.r.l.

U.A.I. (Luxembourg) Investment S.à.r.l. issued a promissory note in the amount of $100.0 million to Global Indemnity Group, Inc. during the fourth quarter of 2015. This note bears interest at a rate of 8.06% and mature in 2045.

Other than the items discussed in the preceding paragraphs, there have been no material changes to the Company’s capital resources during the nine months ended September 30, 2015. Please see Item 7 of Part II in the Company’s 2014 Annual Report on Form 10-K for information regarding the Company’s capital resources.

Contractual Obligations

The Company has commitments in the form of operating leases, commitments to fund limited partnerships, subordinated notes, and unpaid losses and loss expense obligations. As of September 30, 2015, contractual obligations related to Global Indemnity’s commitments, including any principal and interest payments, were as follows:

			Payment Due by Period
(Dollars in thousands)
	Total		Less than 1 year		1 - 3 years		3 - 5 years		More than 5 years
Operating leases (1)	$	12,792	$	3,336	$	6,349	$	3,082	$	25
Commitments to fund limited partnerships		23,705		23,705		—		—		—
Subordinated notes due 2045 (2)		332,500		7,750		15,500		15,500		293,750
Unpaid losses and loss adjustment expenses obligations (3)		729,509		254,440		248,084		117,516		109,469
Total	$	1,098,506	$	289,231	$	269,933	$	136,098	$	403,244

(1) The Company leases office space and equipment as part of its normal operations. The amounts shown above represent future commitments under such operating leases.

(2) On August 12, 2015, the Company issued Subordinated Notes due in 2045 in the aggregate principal amount of $100.0 million through an underwritten public offering. The notes bear interest at an annual rate equal to 7.75% payable quarterly. The notes mature on August 15, 2045. The Company has the right to redeem the notes in $25 increments, in whole or in part, on and after August 15, 2020, or on any interest payments date thereafter, at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption.

(3) These amounts represent the gross future amounts needed to pay losses and related loss adjustment expenses and do not reflect amounts that are expected to be recovered from the Company’s reinsurers. See discussion in “Liability for Unpaid Losses and Loss Adjustment Expenses” for more details.

Off Balance Sheet Arrangements

The Company has no off balance sheet arrangements.

Cautionary Note Regarding Forward-Looking Statements

Some of the statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this report may include forward-looking statements that reflect the Company’s current views with respect to future events and financial performance that are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,” “project,” “plan,” “seek,” “intend,” or “anticipate” or the negative thereof or comparable terminology, and include discussions of strategy, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives, expectations or consequences of identified transactions or natural disasters, and statements about the future performance, operations, products and services of the companies.

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The Company’s business and operations are and will be subject to a variety of risks, uncertainties and other factors. Consequently, actual results and experience may materially differ from those contained in any forward-looking statements. Such risks, uncertainties and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: (1) the ineffectiveness of the Company’s business strategy due to changes in current or future market conditions; (2) the effects of competitors’ pricing policies, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products; (3) greater frequency or severity of claims and loss activity than the Company’s underwriting, reserving or investment practices have anticipated; (4) decreased level of demand for the Company’s insurance products or increased competition due to an increase in capacity of property and casualty insurers; (5) risks inherent in establishing loss and loss adjustment expense reserves; (6) uncertainties relating to the financial ratings of the Company’s insurance subsidiaries; (7) uncertainties arising from the cyclical nature of the Company’s business; (8) changes in the Company’s relationships with, and the capacity of, its general agents, brokers, insurance companies and reinsurance companies from which the Company derives its business; (9) the risk that the Company’s reinsurers may not be able to fulfill obligations; (10) investment performance and credit risk; (11) new tax legislation or interpretations that could lead to an increase in the Company’s tax burden; (12) uncertainties relating to governmental and regulatory policies, both domestically and internationally; (13) foreign currency fluctuations; (14) the impact of catastrophic events; (15) the Company’s subsidiaries’ ability to pay dividends; (16) deterioration of debt and equity markets; (17) interest rate changes; (18) uncertainties relating to ongoing or future litigation matters; and (19) uncertainties and risks related to the acquisition of American Reliable.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are set forth in “Risk Factors” in Item 1A and elsewhere in the Company’s 2014 Annual Report on Form 10-K. The Company’s forward-looking statements speak only as of the date of this report or as of the date they were made. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

During the quarter ended September 30, 2015, global equities posted their worst quarterly return in four years. US equities retreated for the first time in 11 quarters, falling into negative territory year to date. The S&P 500 Index experienced its first correction, a 10% decline from its recent high (May 21), since October 2011. Financial markets came under significant pressure in the third quarter amid fresh worries over the global economic outlook. The unexpected devaluation in China’s currency negatively impacted financial markets, deepening fears about the Chinese economic slowdown and potential spillover effects. Falling commodity prices and uncertainty over the timing of the first Fed rate hike further complicated financial outlooks. Most global government bond yields declined, credit spreads widened, and the US dollar appreciated, particularly versus commodity-linked and Asian currencies. Despite these global headwinds, overall, the US economy remained on solid footing, with a sharp rebound in gross domestic product, a seven-year low in unemployment, and a healthy housing market.

The Company’s investment grade fixed income portfolio continues to maintain high quality with an AA- average rating and a low duration of 2.0 years. Portfolio purchases during the quarter were focused within US Corporate bonds, commercial mortgage-backed securities, and asset-backed securities. These purchases were funded primarily through maturities and paydowns. During the third quarter of 2015, the portfolio’s asset allocation was relatively unchanged.

There have been no other material changes to the Company’s market risk since December 31, 2014. Please see Item 7A of Part II in the Company’s 2014 Annual Report on Form 10-K for information regarding the Company’s market risk.

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that are designed to ensure that information required to be disclosed in the Company’s reports under the Exchange Act is recorded, processed, summarized and reported within the time periods

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GLOBAL INDEMNITY PLC

specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of September 30, 2015. Based upon that evaluation and subject to the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2015, the design and operation of the Company’s disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

Changes in Internal Controls

During the quarter ended September 30, 2015 there have been no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II-OTHER INFORMATION

Item 1. Legal Proceedings

The Company is, from time to time, involved in various legal proceedings in the ordinary course of business. The Company maintains insurance and reinsurance coverage for risks in amounts that it considers adequate. However, there can be no assurance that the insurance and reinsurance coverage that the Company maintains is sufficient or will be available in adequate amounts or at a reasonable cost. The Company does not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material adverse effect on its business, results of operations, cash flows, or financial condition.

There is a greater potential for disputes with reinsurers who are in runoff. Some of the Company’s reinsurers’ have operations that are in runoff, and therefore, the Company closely monitors those relationships. The Company anticipates that, similar to the rest of the insurance and reinsurance industry, it will continue to be subject to litigation and arbitration proceedings in the ordinary course of business.

Item 1A. Risk Factors

The Company’s results of operations and financial condition are subject to numerous risks and uncertainties described in Item 1A of Part I in the Company’s 2014 Annual Report on Form 10-K, filed with the SEC on March 16, 2015. The risk factors identified therein have not materially changed except as follows:

The Subordinated Notes could adversely affect the Company’s financial flexibility and a failure to make periodic payments related to the Subordinated Notes could adversely affect the Company.

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GLOBAL INDEMNITY PLC

The Company sold $100 million aggregate principal amount of its 7.75% Subordinated Notes due in 2045. The level of debt outstanding could adversely affect the Company’s financial flexibility, including:

• increasing vulnerability to changing economic, regulatory and industry conditions;

• limiting the ability to borrow additional funds; and

• requiring the Company to dedicate a substantial portion of cash flow from operations to debt payments, thereby, reducing funds available for working capital, capital expenditures, acquisitions and other purposes.

Further, failure by the Company to make periodic payments related to the Subordinated Notes could impact rating agencies and regulators assessment of the Company’s capital position, adequacy and flexibility and therefore, the financial strength ratings of rating agencies, and regulators’ assessment of the solvency of the Company and its subsidiaries.

The Company previously identified a material weakness in internal control over financial reporting which has been remediated, and the Company’s business may be adversely affected if it fails to maintain effective controls over financial reporting.

Global Indemnity identified a material weakness in internal control over financial reporting at December 31, 2014 related to an element of the design of its estimation process for Unpaid Losses and Loss Adjustment Expenses. Specifically, the design of the Company’s control relating to Unpaid Losses and Loss Adjustment Expenses that exceeded the central estimates of both the internal and external actuaries in the process of establishing management’s final determination of loss reserve selections was not adequate. This deficiency did not result in a material misstatement in the consolidated financial statements; however, this deficiency could have resulted in a material misstatement of the aforementioned accounts and disclosures of the annual or interim consolidated financial statements that would not have been prevented or detected.

The Company has completed its testing of both the design and operating effectiveness of the controls over the estimation process and concluded that the material weakness identified at December 31, 2014 was remediated as of March 31, 2015. Global Indemnity faces the risk that, notwithstanding efforts to date to identify and remedy the material weakness in internal control over financial reporting, the Company may discover other material weaknesses in the future and the cost of remediating the material weakness could be high and could have a material adverse effect on the Company’s financial condition and results of operations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The Company’s Share Incentive Plan allows employees to surrender the Company’s A ordinary shares as payment for the tax liability incurred upon the vesting of restricted stock that was issued under either the 2003 or 2014 Plan. There were no shares purchased from the Company’s employees during the quarter ended September 30, 2015. All A ordinary shares purchased from employees by the Company are held as treasury stock and recorded at cost.

See Note 9 to the consolidated financial statements in Item 1 of Part I of this report for tabular disclosure of the Company’s share repurchases by month.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

On November 5, 2015, Stephen A. Cozen informed the Company that he will resign from the Board of Directors effective December 31, 2015. Mr. Cozen’s decision to resign was not the result of any disagreement with the Company.

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GLOBAL INDEMNITY PLC

Item 6. Exhibits

4.1	Indenture, dated as of August 12, 2015, by and between the Company and Wells Fargo Bank, National Association, as trustee (incorporated herein by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K dated August 12, 2015 File No. 001-34809).
4.2	Officers’ Certificate, dated August 12, 2015 (incorporated herein by reference to Exhibit 4.2 of the Company’s Current Report on Form 8-K dated August 12, 2015 File No. 001-34809).
4.3	Form of 7.75% Subordinated Notes due 2045 (included in Exhibit 4.2) (incorporated herein by reference to Exhibit 4.3 of the Company’s Current Report on Form 8-K dated August 12, 2015 File No. 001-34809).
31.1+	Certification of Chief Executive Officer pursuant to Rule 13a-14 (a) / 15d-14 (a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2+	Certification of Chief Financial Officer pursuant to Rule 13a-14 (a) / 15d-14 (a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1+	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2+	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.1+	The following financial information from Global Indemnity plc’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 formatted in XBRL: (i) Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014; (ii) Consolidated Statements of Operations for the quarters and nine months September 30, 2015 and 2014; (iii) Consolidated Statements of Comprehensive Income for the quarters and nine months ended September 30, 2015 and 2014; (iv) Consolidated Statements of Changes in Shareholders’ Equity for the nine months ended September 30, 2015 and the year ended December 31, 2014; (v) Consolidated Statements of Cash Flows for the nine months ended September 30, 2015 and 2014; and (vi) Notes to Consolidated Financial Statements.

+ Filed or furnished herewith, as applicable.

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GLOBAL INDEMNITY PLC

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	GLOBAL INDEMNITY PLC
	Registrant
November 9, 2015	By:	/s/ Thomas M. McGeehan
Date: November 9, 2015	Thomas M. McGeehan
	Chief Financial Officer
	(Authorized Signatory and Principal Financial and Accounting Officer)

78

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULE 13a-14(a)/15d-14(a),

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Cynthia Y. Valko, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Global Indemnity plc;

2. Based on my knowledge, this Quarterly Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Quarterly Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Quarterly Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Quarterly Report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Quarterly Report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Quarterly Report based on such evaluation; and

d) Disclosed in this Quarterly Report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s independent registered public accounting firm and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 9, 2015

/s/ Cynthia Y. Valko

Cynthia Y. Valko

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULE 13a-14(a)/15d-14(a),

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Thomas M. McGeehan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Global Indemnity plc;

2. Based on my knowledge, this Quarterly Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Quarterly Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Quarterly Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Quarterly Report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Quarterly Report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Quarterly Report based on such evaluation; and

d) Disclosed in this Quarterly Report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s independent registered public accounting firm and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 9, 2015

/s/ Thomas M. McGeehan

Thomas M. McGeehan

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Global Indemnity plc (the “Company”) on Form 10-Q for the quarterly period ended September 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Cynthia Y. Valko, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 9, 2015

/s/ Cynthia Y. Valko

Cynthia Y. Valko

Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Global Indemnity plc (the “Company”) on Form 10-Q for the quarterly period ended September 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas M. McGeehan, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 9, 2015

/s/ Thomas M. McGeehan

Thomas M. McGeehan

Chief Financial Officer

XML

Valuation of Intangible Assets (Detail) $ in Thousands	Jan. 01, 2015 USD ($)
Acquired Intangible Assets [Line Items]
Amount	$ 32,000
State insurance licenses
Acquired Intangible Assets [Line Items]
Amount	5,000
Value of business acquired
Acquired Intangible Assets [Line Items]
Amount	$ 25,500
Value of business acquired | Maximum
Acquired Intangible Assets [Line Items]
Useful Life	1 year
Agent Relationships
Acquired Intangible Assets [Line Items]
Useful Life	10 years
Amount	$ 900
Trade names
Acquired Intangible Assets [Line Items]
Amount	$ 600
Trade names | Maximum
Acquired Intangible Assets [Line Items]
Useful Life	8 years
Trade names | Minimum
Acquired Intangible Assets [Line Items]
Useful Life	7 years

XML

Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other net realized investment gains (losses)	$ (6,137)	$ 1,164	$ (337)	$ 40,294
Other than temporary impairment losses on investments	(4,641)	(6)	(6,879)	(68)
Income (loss) before income taxes	(9,727)	8,128	3,283	59,900
Income tax (benefit)	5,981	1,633	10,882	(8,108)
Net income (loss)	(3,746)	9,761	14,165	51,792
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income (loss)	2,199	(1,524)	(517)	(35,312)
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available for Sale Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other net realized investment gains (losses)	(2,042)	(2,355)	(9,168)	(53,729)
Other than temporary impairment losses on investments	4,641	6	6,879	68
Income (loss) before income taxes	2,599	(2,349)	(2,289)	(53,661)
Income tax (benefit)	(470)	826	1,376	18,425
Net income (loss)	2,129	(1,523)	(913)	(35,236)
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Items
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other net realized investment gains (losses)	108	(1)	609	(117)
Income tax (benefit)	(38)		(213)	41
Net income (loss)	$ 70	$ (1)	$ 396	$ (76)

XML

Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Due in one year or less, Amortized Cost	$ 142,231
Due in one year through five years, Amortized Cost	701,239
Due in five years through ten years, Amortized Cost	49,986
Due in ten years through fifteen years, Amortized Cost	3,799
Due after fifteen years, Amortized Cost	17,690
Fixed maturities, amortized cost	1,539,192	$ 1,272,948
Due in one year or less, Estimated Fair value	143,283
Due in one year through five years, Estimated Fair value	705,430
Due in five years through ten years, Estimated Fair value	50,812
Due in ten years through fifteen years, Estimated Fair value	4,277
Due after fifteen years, Estimated Fair value	17,770
Fixed Maturities, estimated fair value	1,548,885	$ 1,283,475
Mortgage Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	185,359
Estimated Fair value	188,403
Asset-backed Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	278,059
Estimated Fair value	278,834
Commercial Mortgage-Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	160,829
Estimated Fair value	$ 160,076

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Fair Value and Future Funding Commitments Related to These Investments (Detail) - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		$ 33,555	$ 33,663
Other Invested Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		33,555	33,663
Future Funding Commitments		23,705	22,500
Equity Fund, LP | Other Invested Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	[1]	3,348	3,401
Future Funding Commitments	[1]	2,391	2,436
European Non-Performing Loan Fund, LP | Other Invested Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	[2]	30,207	30,262
Future Funding Commitments	[2]	$ 21,314	$ 20,064

[1] This limited partnership invests in companies from various business sectors whereby the partnership has acquired control of the operating business as a lead or organizing investor. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company anticipates its interest in this partnership to be redeemed during the 4th quarter of 2015.

[2] This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. Based on the terms of the partnership agreement, the Company anticipates its interest in this partnership to be redeemed in 2020.

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Components of Net Realized Investment Gains (Losses) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Schedule of Available-for-sale Securities [Line Items]
Total net realized investment gains (losses)	$ (10,778)	$ 1,158	$ (7,216)	$ 40,226
Not Designated as Hedging Instrument | Interest Rate Swap
Schedule of Available-for-sale Securities [Line Items]
Gross realized gains		147
Gross realized losses	(8,071)	(1,339)	(8,896)	(13,552)
Total net realized investment gains (losses)	(8,071)	(1,192)	(8,896)	(13,552)
Fixed Maturities
Schedule of Available-for-sale Securities [Line Items]
Gross realized gains	110	262	1,589	2,651
Gross realized losses	(1,451)	(471)	(1,692)	(697)
Total net realized investment gains (losses)	(1,341)	(209)	(103)	1,954
Common Shares
Schedule of Available-for-sale Securities [Line Items]
Gross realized gains	3,494	2,559	9,418	52,434
Gross realized losses	(4,860)		(7,731)	(610)
Total net realized investment gains (losses)	$ (1,366)	$ 2,559	1,687	$ 51,824
Preferred Stock
Schedule of Available-for-sale Securities [Line Items]
Gross realized gains			96
Total net realized investment gains (losses)			$ 96

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Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	$ (8,512)	$ 153	$ (17,171)	$ (5,969)
Commercial Lines Segment
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	(7,300)	20	(12,900)	(5,000)
Commercial Lines Segment | General Liability
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve		5,400		5,300
Commercial Lines Segment | General Liability | Accident Years 1999 through 2013
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	(3,800)
Commercial Lines Segment | General Liability | Accident Years Prior to 2013
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve			(5,700)
Commercial Lines Segment | Professional | Accident Years 2007 through 2011
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve		(6,400)		(18,100)
Commercial Lines Segment | Professional | Accident Years 2006 through 2012
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	(3,500)		(6,400)
Commercial Lines Segment | Property Lines | Accident Years 2011 Through 2013
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve		500
Commercial Lines Segment | Property Lines | Accident Years 2007, 2012 and 2013
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve				700
Commercial Lines Segment | Property Lines | Accident Years 2011 through 2014
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve			(800)
Commercial Lines Segment | Asbestos | Accident Years Prior to 1990
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve		200		7,100
Commercial Lines Segment | Other Lines | Accident Years 2011 Through 2013
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve		300
Commercial Lines Segment | Umbrella Lines | Accident Years 2003 through 2005
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve			(300)
Reinsurance Operations
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	(1,200)	100	(4,300)	(1,000)
Reinsurance Operations | Accident Years 2009 to 2014
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve			$ (4,300)
Reinsurance Operations | Property Lines | Accident Year 2013
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve		(3,400)
Reinsurance Operations | Property Lines | Accident Years 2012 and 2013
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve				(4,700)
Reinsurance Operations | Property Lines | Accident Years 2009 to 2013
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	$ (1,200)
Reinsurance Operations | Marine | Accident Years 2011 and 2012
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve		3,000		3,000
Reinsurance Operations | Commercial Auto Liability | Accident Years 2009 and 2010
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve		$ 500		$ 700

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Schedule of Amortized Cost and Estimated Fair Value of Investments (Detail) - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		$ 1,669,586	$ 1,405,419
Gross Unrealized Gains		28,054	40,666
Gross Unrealized Losses		(8,534)	(6,899)
Estimated Fair Value		1,689,106	1,439,186
Other than temporary impairments recognized in AOCI	[1]	(10)	(17)
Common Shares
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		99,257	99,297
Gross Unrealized Gains		12,359	25,689
Gross Unrealized Losses		(4,950)	(2,938)
Estimated Fair Value		106,666	122,048
Other Invested Assets
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		31,137	33,174
Gross Unrealized Gains		2,418	489
Estimated Fair Value		33,555	33,663
Fixed Maturities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		1,539,192	1,272,948
Gross Unrealized Gains		13,277	14,488
Gross Unrealized Losses		(3,584)	(3,961)
Estimated Fair Value		1,548,885	1,283,475
Other than temporary impairments recognized in AOCI	[1]	(10)	(17)
Fixed Maturities | U.S. Treasury and Agency Obligations
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		95,312	78,569
Gross Unrealized Gains		1,972	2,281
Gross Unrealized Losses		(9)	(83)
Estimated Fair Value		97,275	80,767
Fixed Maturities | Obligations of States and Political Subdivisions
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		232,532	188,452
Gross Unrealized Gains		3,538	3,718
Gross Unrealized Losses		(670)	(697)
Estimated Fair Value		235,400	191,473
Fixed Maturities | Mortgage Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		185,359	205,814
Gross Unrealized Gains		3,203	3,709
Gross Unrealized Losses		(159)	(764)
Estimated Fair Value		188,403	208,759
Other than temporary impairments recognized in AOCI	[1]		(4)
Fixed Maturities | Asset-backed Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		278,059	177,853
Gross Unrealized Gains		1,391	713
Gross Unrealized Losses		(616)	(303)
Estimated Fair Value		278,834	178,263
Other than temporary impairments recognized in AOCI	[1]	(10)	(13)
Fixed Maturities | Commercial Mortgage-Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		160,829	133,984
Gross Unrealized Gains		74	21
Gross Unrealized Losses		(827)	(847)
Estimated Fair Value		160,076	133,158
Fixed Maturities | Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		459,840	380,704
Gross Unrealized Gains		2,526	3,421
Gross Unrealized Losses		(1,072)	(709)
Estimated Fair Value		461,294	383,416
Fixed Maturities | Foreign Corporate Bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		127,261	107,572
Gross Unrealized Gains		573	625
Gross Unrealized Losses		(231)	(558)
Estimated Fair Value		$ 127,603	$ 107,639

[1] Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income ("AOCI").

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

(Dollars in thousands,	Quarters Ended September 30,					Nine Months Ended September 30,
except share and per share data)	2015			2014		2015		2014
Net income (loss)	$	(3,746	)	$	9,761	$	14,165	$	51,792
Basic earnings per share:
Weighted average shares outstanding – basic		25,463,994			25,137,531		25,452,991		25,126,684
Net income (loss) per share	$	(0.15	)	$	0.39	$	0.56	$	2.06
Diluted earnings per share:
Weighted average shares outstanding – diluted		25,704,931			25,334,716		25,684,931		25,323,187
Net income (loss) per share	$	(0.15	)	$	0.39	$	0.55	$	2.05

Reconciliation of Weighted Average Shares for Basic and Diluted Earnings Per Share

A reconciliation of weighted average shares for basic earnings per share to weighted average shares for diluted earnings per share is as follows:

	Quarters Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Weighted average shares for basic earnings per share		25,463,994		25,137,531		25,452,991		25,126,684
Non-vested restricted stock		138,261		89,114		128,942		88,710
Options		102,676		108,071		102,998		107,793
Weighted average shares for diluted earnings per share		25,704,931		25,334,716		25,684,931		25,323,187

Summarizes Options which Deemed to be Anti-dilutive

The following table summarizes options which are deemed to be anti-dilutive at September 30, 2015:

Grant Date	Expiration Date	Outstanding Options		Strike Price
February 9, 2014	February 10, 2024		300,000		32.38
January 1, 2015	January 1, 2025		200,000		28.37
November 2, 2005 (1)	November 3, 2015		12,500		37.70
			512,500

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Outstanding Debt Consisted (Detail) - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Debt		$ 292,144	$ 174,673
Margin borrowing facilities
Debt Instrument [Line Items]
Debt		195,787	$ 174,673
7.75% Subordinated Notes due 2045
Debt Instrument [Line Items]
Debt	[1]	$ 96,357

[1] As of September 30, 2015, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.6 million.

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Income Before Income Taxes from its Non-U.S. Subsidiaries and U.S. Subsidiaries (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Gross premiums written	$ 150,148	$ 67,098	$ 459,532	$ 227,200
Net premiums written	122,497	63,262	394,606	212,495
Net premiums earned	124,707	68,028	380,921	201,589
Net investment income	8,852	6,527	26,234	22,488
Net realized investment gains (losses)	(10,778)	1,158	(7,216)	40,226
Other income (loss)	1,279	126	2,408	449
Total revenues	124,060	75,839	402,347	264,752
Losses and Expenses:
Net losses and loss adjustment expenses	77,691	36,654	226,870	113,496
Acquisition costs and other underwriting expenses	50,934	27,458	150,118	81,114
Corporate and other operating expenses	3,567	3,481	19,441	9,614
Interest expense	1,595	118	2,635	628
Income (loss) before income taxes	(9,727)	8,128	3,283	59,900
Eliminations
Revenues:
Gross premiums written	(57,663)	(27,780)	(241,718)	(82,552)
Net investment income	(6,575)	(4,841)	(19,506)	(14,439)
Total revenues	(6,575)	(4,841)	(19,506)	(14,439)
Losses and Expenses:
Interest expense	(6,575)	(4,841)	(19,506)	(14,439)
Non-U.S. Subsidiaries
Revenues:
Gross premiums written	67,543	38,387	289,940	139,714
Net premiums written	67,534	38,366	289,892	138,677
Net premiums earned	70,532	43,238	214,667	126,551
Net investment income	10,644	7,713	32,146	22,947
Net realized investment gains (losses)	(1,256)	(10)	(1,643)	1,017
Other income (loss)	(11)	(38)	(77)	(41)
Total revenues	79,909	50,903	245,093	150,474
Losses and Expenses:
Net losses and loss adjustment expenses	39,849	18,939	115,654	51,818
Acquisition costs and other underwriting expenses	30,504	17,762	92,368	52,637
Corporate and other operating expenses	1,648	1,156	3,395	4,034
Interest expense	1,501	193	2,325	647
Income (loss) before income taxes	6,407	12,853	31,351	41,338
U.S. Subsidiaries
Revenues:
Gross premiums written	140,268	56,491	411,310	170,038
Net premiums written	54,963	24,896	104,714	73,818
Net premiums earned	54,175	24,790	166,254	75,038
Net investment income	4,783	3,655	13,594	13,980
Net realized investment gains (losses)	(9,522)	1,168	(5,573)	39,209
Other income (loss)	1,290	164	2,485	490
Total revenues	50,726	29,777	176,760	128,717
Losses and Expenses:
Net losses and loss adjustment expenses	37,842	17,715	111,216	61,678
Acquisition costs and other underwriting expenses	20,430	9,696	57,750	28,477
Corporate and other operating expenses	1,919	2,325	16,046	5,580
Interest expense	6,669	4,766	19,816	14,420
Income (loss) before income taxes	$ (16,134)	$ (4,725)	$ (28,068)	$ 18,562

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Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Net income (loss)	$ (3,746)	$ 9,761	$ 14,165	$ 51,792
Weighted average shares outstanding - basic	25,463,994	25,137,531	25,452,991	25,126,684
Net income (loss) per share	$ (0.15)	$ 0.39	$ 0.56	$ 2.06
Weighted average shares outstanding - diluted	25,704,931	25,334,716	25,684,931	25,323,187
Net income (loss) per share	$ (0.15)	$ 0.39	$ 0.55	$ 2.05

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Schedule of Investment Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Schedule of Available-for-sale Securities [Line Items]
Investment income	$ 9,601	$ 7,585	$ 28,722	$ 25,833
Investment expense	(749)	(1,058)	(2,488)	(3,345)
Net investment income	8,852	6,527	26,234	22,488
Fixed Maturities
Schedule of Available-for-sale Securities [Line Items]
Investment income	8,673	6,791	24,709	20,843
Equity Securities
Schedule of Available-for-sale Securities [Line Items]
Investment income	703	780	2,419	4,861
Cash and Cash Equivalents
Schedule of Available-for-sale Securities [Line Items]
Investment income	32	$ 14	59	42
Other Invested Assets
Schedule of Available-for-sale Securities [Line Items]
Investment income	$ 193		$ 1,535	$ 87

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Tax Effects of Temporary Differences That Give Rise to Significant Portions of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Deferred tax assets:
Discounted unpaid losses and loss adjustment expenses	$ 8,739	$ 7,492
Unearned premiums	8,117	3,409
Alternative minimum tax credit carryover	10,587	10,473
Net operating loss carryforward	6,264	0
Partnership K1 basis differences	245	145
Capital gain on derivative instruments	6,483	4,786
Investment impairments	2,709	379
Stock options	2,578	2,048
Deferred acquisition costs	149	187
Stat-to-GAAP reinsurance reserve	1,364	1,424
Intercompany transfers	1,738	1,919
Depreciation and amortization	93	(16)
Other	4,115	3,050
Total deferred tax assets	53,181	35,312
Deferred tax liabilities:
PGAAP adjustment for American Reliable	6,095
Intangible assets	4,615	3,220
Unrealized gain on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income	4,827	10,263
Investment basis differences	1,066	692
Depreciation and amortization	(93)	16
Other	769	871
Total deferred tax liabilities	17,372	15,062
Total net deferred tax assets	$ 35,809	$ 20,250

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Net Balances due to Global Indemnity Reinsurance (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Hiscox Bermuda
Related Party Transaction [Line Items]
Net receivable (payable) balance	$ (61)	$ 2,897

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Debt - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Aug. 12, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Debt		$ 292,144		$ 292,144			$ 174,673
Interest expense		1,595	$ 118	$ 2,635	$ 628
Debt instrument, interest rate terms				100.00%
Margin borrowing facilities
Debt Instrument [Line Items]
Debt		$ 195,787		$ 195,787			$ 174,673
Stated interest rate		1.00%		1.00%
Collateral deposited to support borrowing		$ 248,500		$ 248,500
Interest expense		500	$ 100	1,600	$ 500
7.75% Subordinated Notes due 2045
Debt Instrument [Line Items]
Debt	[1]	$ 96,357		$ 96,357
Stated interest rate		7.75%		7.75%			7.75%
Interest expense		$ 1,100		$ 1,100
Debt instrument, face amount						$ 100,000
Debt instrument, interest rate terms				Payable quarterly in arrears on February 15, May 15, August 15, and November 15 of each year
Debt instrument, maturity date				Aug. 15, 2045
Debt instrument, redemption description				The Company has the right to redeem the notes in $25 increments, in whole or in part, on and after August 15, 2020, or on any interest payments date thereafter, at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption.
Deferred issuance costs		$ 3,600		$ 3,600

[1] As of September 30, 2015, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.6 million.

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Commitments And Contingencies - Additional Information (Detail) $ in Millions	Sep. 30, 2015 USD ($)
Commitments and Contingencies [Line Items]
Commitment to purchase alternative investment	$ 50.0
Funded commitment amount	28.7
Unfunded Commitments | European Non-Performing Loan Fund, LP
Commitments and Contingencies [Line Items]
Future Funding Commitments	21.3
Unfunded Commitments | Equity Fund, LP
Commitments and Contingencies [Line Items]
Future Funding Commitments	$ 2.4

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Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Liability for Claims and Claims Adjustment Expense [Line Items]
Balance at beginning of period	$ 769,299	$ 754,595	$ 675,472	$ 779,466
Less:Ceded reinsurance receivables	138,497	178,998	123,201	192,491
Net balance at beginning of period	630,802	575,597	552,271	586,975
Purchased reserves, gross	1,119		89,489
Less: Purchased reserves ceded	(1,119)		(12,800)
Purchased reserves, net			76,689
Incurred losses and loss adjustment expenses related to:
Current year	86,203	36,501	244,041	119,464
Prior years	(8,512)	153	(17,171)	(5,969)
Total incurred losses and loss adjustment expenses	77,691	36,654	226,870	113,495
Paid losses and loss adjustment expenses related to:
Current year	53,512	15,480	113,573	39,472
Prior years	56,385	28,704	143,661	92,931
Total paid losses and loss adjustment expenses	109,897	44,184	257,234	132,403
Net balance at end of period	598,596	568,067	598,596	568,067
Plus:Ceded reinsurance receivables	130,913	171,864	130,913	171,864
Balance at end of period	$ 729,509	$ 739,931	$ 729,509	$ 739,931

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Fair Value and Future Funding Commitments Related to These Investments (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2015 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value written down	$ 0

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Acquisition (Tables)

9 Months Ended

Sep. 30, 2015

Schedule of Unaudited Pro Forma Consolidated Results of Operations

The following table presents the Company’s unaudited pro forma consolidated results of operations for the quarters and nine months ended September 30, 2015 and 2014 as if the acquisition had occurred on January 1, 2014 instead of January 1, 2015.

	Pro Forma
	Quarters Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands except per share data)	2015			2014		2015		2014
Total Revenue	$	124,060		$	141,902	$	402,347	$	462,164
Net Income (Loss)	$	(3,746	)	$	13,782	$	19,560	$	57,224
Net Income (Loss) per share (diluted)	$	( 0.15	)	$	0.54	$	0.76	$	2.24

Valuation of Intangible Assets

An identification and valuation of intangible assets was performed that resulted in the recognition of intangible assets of $32.0 million with values assigned as follows:

(Dollars in thousands) Description	Useful Life	Amount
State insurance licenses	Indefinite	$	5,000
Value of business acquired	< 1 year		25,500
Agent relationships	10 years		900
Trade name	7 - 8 years		600
		$	32,000

Fair Value, Gross Contractual Amounts Due, and Contractual Cash Flows Not Expected to be Collected of Acquired Receivables

The fair value, gross contractual amounts due, and contractual cash flows not expected to be collected of acquired receivables are as follows:

(Dollars in thousands)	Fair Value		Gross Contractual Amounts Due		Contractual cash flows not expected to be collected
Premium receivables	$	25,941	$	26,896	$	955
Accounts receivable		11,311		11,311		—
Reinsurance receivables		12,723		12,723		—

Geographical Distribution of American Reliable's Gross Premium Written

The following table sets forth the geographic distribution of American Reliable’s gross premiums written, excluding business that is ceded under a 100% quota share reinsurance agreement to American Bankers Insurance Company of Florida, for the year ended December 31, 2014:

	Year Ended December 31, 2014
(Dollars in thousands)	Amount		Percent
Texas	$	32,760		12.3	%
California		25,556		9.6
North Carolina		23,040		8.7
Arizona		17,722		6.7
Louisiana		17,522		6.6
New York		13,408		5.0
Florida		12,361		4.6
Oklahoma		9,977		3.7
Georgia		8,768		3.3
New Jersey		6,925		2.6
Subtotal		168,039		63.1
All other states		98,264		36.9
Total	$	266,303		100.0	%

Effect of Reinsurance on Premiums Written and Earned

The effect of reinsurance on premiums written and earned by American Reliable is as follows:

(Dollars in thousands)	Written		Earned
For the quarter ended September 30, 2015:
Direct business	$	65,824	$	57,825
Reinsurance assumed		21,525		22,927
Reinsurance ceded		24,047		18,620
Net premiums	$	63,302	$	62,132

(Dollars in thousands)	Written		Earned
For the nine months ended September 30, 2015:
Direct business	$	179,979	$	182,851
Reinsurance assumed		69,585		70,120
Reinsurance ceded		52,779		61,499
Net premiums	$	196,785	$	191,472

Future Minimum Cash Payments under Non-Cancelable Operating Leases

At September 30, 2015, future minimum cash payments under non-cancelable operating leases related to the operations of American Reliable were as follows:

(Dollars in thousands)
October 1, 2015 to September 30, 2016	$	1,032
October 1, 2016 to September 30, 2017		941
October 1, 2017 to September 30, 2018		937
October 1, 2018 to September 30, 2019		143
Total	$	3,053

American Reliable Insurance Company

Estimated Fair Value of Assets Acquired and Liabilities Assumed

The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the date of the acquisition as of September 30, 2015 compared to June 30, 2015 along with changes in estimates made during the quarter.

	As of
(Dollars in thousands)	September 30, 2015		June 30, 2015		Change
ASSETS:
Investments	$	226,458	$	226,458	$	—
Cash and cash equivalents		21,360		21,360		—
Premiums receivables, net		25,941		25,941		—
Accounts receivable		11,311		17,129		(5,818	)
Reinsurance receivables		13,842		12,723		1,119
Prepaid reinsurance premiums		43,506		43,506		—
Intangible assets		32,000		32,000		—
Deferred federal income taxes		1,139		1,246		(107	)
Other assets		6,550		6,550		—
Total assets		382,107		386,913		(4,806	)
LIABILITIES:
Unearned premiums		172,234		172,234		—
Unpaid losses and loss adjustment expenses		89,489		88,370		1,119
Reinsurance balances payable		13,219		13,219		—
Contingent commissions		3,876		3,876		—
Other liabilities		5,608		5,685		(77	)
Total liabilities		284,426		283,384		1,042
Estimated fair value of net assets acquired		97,681		103,529		(5,848	)
Purchase price		99,797		105,843		6,046
Goodwill	$	2,116	$	2,314	$	(198	)

Intangible assets

The following table presents details of the Company’s intangible assets arising from the American Reliable acquisition as of September 30, 2015:

(Dollars in thousands) Description	Useful Life	Cost		Accumulated Amortization		Net Value
State insurance licenses	Indefinite	$	5,000	$	—	$	5,000
Value of business acquired	< 1 year		25,500		22,823		2,677
Agent relationships	10 years		900		67		833
Trade name	7 - 8 years		600		64		536
		$	32,000	$	22,954	$	9,046

Expected Amortization Expense

The Company expects that amortization expense for the next five years related to the American Reliable acquisition will be as follows:

(Dollars in thousands)
October 1, 2015 to September 30, 2016	$	2,853
October 1, 2016 to September 30, 2017		176
October 1, 2017 to September 30, 2018		176
October 1, 2018 to September 30, 2019		176
October 1, 2019 to September 30, 2020		176

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Schedule of Other Than Temporary Impairments on Investments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Schedule of Available-for-sale Securities [Line Items]
OTTI losses, gross		$ (6)	$ (23)	$ (31)
Portion of loss recognized in other comprehensive income (pre-tax)	$ 0	0	0	0
Net impairment losses on fixed maturities recognized in earnings		(6)	(23)	(31)
Equity securities	(4,641)		(6,856)	(37)
Total	$ (4,641)	$ (6)	$ (6,879)	$ (68)

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Fair Value, Gross Contractual Amounts Due, and Contractual Cash Flows Not Expected to be Collected of Acquired Receivables (Detail) $ in Thousands	Sep. 30, 2015 USD ($)
Premium Receivables
Business Acquisition [Line Items]
Acquired receivables, Fair Value	$ 25,941
Acquired receivables, Gross Contractual Amounts Due	26,896
Acquired receivables, Contractual cash flows not expected to be collected	955
Accounts Receivable
Business Acquisition [Line Items]
Acquired receivables, Fair Value	11,311
Acquired receivables, Gross Contractual Amounts Due	11,311
Reinsurance Receivables
Business Acquisition [Line Items]
Acquired receivables, Fair Value	12,723
Acquired receivables, Gross Contractual Amounts Due	$ 12,723

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Differences in Tax Provision for Financial Statement Purposes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Tax [Line Items]
Expected tax provision at weighted average, Amount	$ (5,580)	$ (1,614)	$ (9,595)	$ 6,649
Adjustments:
Tax exempt interest, Amount	(107)	(120)	(326)	(490)
Dividend exclusion, Amount	(175)	(229)	(588)	(1,186)
Effective tax rate adjustment, Amount		288		2,600
Other, Amount	(119)	42	(373)	535
Actual tax on continuing operations	$ (5,981)	$ (1,633)	$ (10,882)	$ 8,108
Expected tax provision at weighted average rate, % of Pre-Tax Income	(57.40%)	(19.90%)	(292.30%)	11.10%
Adjustments:
Tax exempt interest, % of Pre-Tax Income	(1.10%)	(1.50%)	(9.90%)	(0.80%)
Dividend exclusion, % of Pre-Tax Income	(1.80%)	(2.80%)	(17.90%)	(2.00%)
Effective tax rate adjustment, % of Pre-Tax Income	0.00%	3.50%	0.00%	4.30%
Other, % of Pre-Tax Income	(1.20%)	0.60%	(11.40%)	0.90%
Actual tax on continuing operations, % of Pre-Tax Income	(61.50%)	(20.10%)	(331.50%)	13.50%

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Schedule of Unaudited Pro Forma Consolidated Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Business Acquisition [Line Items]
Total Revenue	$ 124,060	$ 141,902	$ 402,347	$ 462,164
Net Income (Loss)	$ (3,746)	$ 13,782	$ 19,560	$ 57,224
Net Income (Loss) per share (diluted)	$ (0.15)	$ 0.54	$ 0.76	$ 2.24

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Schedule of Accumulated Other Comprehensive Income, Net of Tax (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Deferred taxes	$ (4,827)		$ (10,263)
Accumulated other comprehensive income, net of tax	13,245	$ 20,102	23,384	$ 24,954	$ 34,001	$ 54,028
Fixed Maturities
Schedule of Available-for-sale Securities [Line Items]
Net unrealized gains	9,693		10,527
Common Shares
Schedule of Available-for-sale Securities [Line Items]
Net unrealized gains	7,409		22,751
Other
Schedule of Available-for-sale Securities [Line Items]
Net unrealized gains	$ 970		$ 369

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Current Fair Value of Debt (Parenthetical) (Detail) - 7.75% Subordinated Notes due 2045 - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Subordinated Notes percentage	7.75%	7.75%
Subordinated Notes due date	2045	2045
Deferred issuance costs	$ 3.6

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Summary of Estimated Fair Values of Bonds Held on Deposit (Detail) - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value		$ 919,373	$ 856,068
On Deposit With Governmental Authorities
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value		39,763	32,790
Intercompany Trusts Held For Benefit Of U.S. Policyholders
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value		555,859	495,301
Held In Trust Pursuant To Third Party Requirements
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value		69,153	95,828
Letter Of Credit Held For Third Party Requirements
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value		6,112	9,340
Securities held as collateral for borrowing arrangements
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value	[1]	$ 248,486	$ 222,809

[1] Amount required to collateralize margin borrowing facilities.

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Investments - Additional Information (Detail) - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses		$ 8,534	$ 6,899
Gross unrealized losses for 12 months or greater	[1]	340	$ 1,739
Investments in insurance enhanced asset backed and credit securities		45,500
Investments in insurance enhanced municipal bonds		19,005
Ratings without insurance		511
Investments in asset backed and taxable municipal bonds		$ 26,500
Asset backed and taxable municipal bonds as a percentage of total cash and invested assets		1.40%
Municipal Bond Insurance Association
Schedule of Available-for-sale Securities [Line Items]
Investments in asset backed and taxable municipal bonds		$ 8,400
Ambac Financial Group
Schedule of Available-for-sale Securities [Line Items]
Investments in asset backed and taxable municipal bonds		1,400
Assured Guaranty Corporation
Schedule of Available-for-sale Securities [Line Items]
Investments in asset backed and taxable municipal bonds		14,500
Financial Guaranty Insurance Group
Schedule of Available-for-sale Securities [Line Items]
Investments in asset backed and taxable municipal bonds		200
Build America Mutual
Schedule of Available-for-sale Securities [Line Items]
Investments in asset backed and taxable municipal bonds		2,000
Financial Guarantors
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds		$ 10,820
Maximum
Schedule of Available-for-sale Securities [Line Items]
Investments in a single issuer as a percentage of shareholders' equity		4.00%	4.00%
Pre-Refunded Securities
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds		$ 8,321
Pre-Refunded Securities | Financial Guarantors
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds		136
A+ Rating
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds		$ 19,000
Insurance enhanced municipal bonds as a percentage of total cash and invested assets		0.01%
Insurance enhanced municipal bonds		$ 10,700
Obligations of States and Political Subdivisions
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses		670
Obligations of States and Political Subdivisions | A Rating
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses for 12 months or greater		97
Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses		1,072
Corporate bonds | BBB Rating
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses for 12 months or greater		21
Common Shares
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses		4,950	$ 2,938
Gross unrealized losses for 12 months or greater	[1]		$ 130
U.S. Treasury and Agency Obligations | AA+ Rating
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses		9
Mortgage Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses		159
Mortgage Backed Securities | Standard & Poor's, CC Rating
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses for 12 months or greater		45
Asset-backed Securities
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses		616
Gross unrealized losses for 12 months or greater		$ 28
Weighted average credit enhancement		21.90%
Commercial Mortgage-Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses		$ 827
Weighted average credit enhancement		35.70%
Percentage of securities in unrealized loss for months position rated		81.00%
Commercial Mortgage-Backed Securities | AA- Rating
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses for 12 months or greater		$ 140
Foreign Corporate Bonds
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses		$ 231

[1] Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired.

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Acquisition

9 Months Ended

Sep. 30, 2015

Acquisition

2. Acquisition

On January 1, 2015, Global Indemnity Group, Inc., a subsidiary of the Company, acquired 100% of the voting equity interest of American Reliable Insurance Company (“American Reliable”) from American Bankers Insurance Group, Inc. by paying $113.7 million in cash and assuming $283.3 million of customary insurance related liabilities, obligations, and mandates. Per the American Reliable Stock Purchase Agreement “Stock Purchase Agreement”), the ultimate purchase price is subject to (i) accounting procedures that were performed in 2015 to determine GAAP book value and (ii) indemnification on future development on recorded loss and loss adjustment expenses as of December 31, 2014. In accordance with the Stock Purchase Agreement, on the third calendar year following the calendar year of the closing, if loss and loss adjustment expenses for accident years 2014 and prior are lower than recorded unpaid loss and loss adjustment expenses as of December 31, 2014, Global Indemnity Group, Inc. will pay the variance to American Bankers Group, Inc. Conversely, if loss and loss adjustment expenses for accident years 2014 and prior exceed recorded unpaid loss and loss adjustment expenses as of December 31, 2014, American Bankers Group, Inc. will pay the variance to Global Indemnity Group, Inc. The Company’s current estimate of the purchase price, based on available financial information, is approximately $99.8 million.

The results of American Reliable’s operations have been included in the Company’s consolidated financial statements since the date of the acquisition on January 1, 2015.

The purchase of American Reliable expanded Global Indemnity’s product offerings. American Reliable is a specialty company that distributes personal lines products written on an admitted basis that are unusual and harder to place. It complements Global Indemnity’s existing US Insurance Operations that primarily distribute commercial lines products on an excess and surplus lines basis.

American Reliable is domiciled in Arizona and as such is subject to its state insurance department regulations.

For the quarter and nine months ended September 30, 2015, American Reliable had total revenues of $63.5 million and $196.1 million, respectively, and pre-tax loss of $11.2 million and $8.5 million, respectively. These amounts are included in the Company’s results of operations for the quarter and nine months ended September 30, 2015.

The following table presents the Company’s unaudited pro forma consolidated results of operations for the quarters and nine months ended September 30, 2015 and 2014 as if the acquisition had occurred on January 1, 2014 instead of January 1, 2015.

	Pro Forma
	Quarters Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands except per share data)	2015			2014		2015		2014
Total Revenue	$	124,060		$	141,902	$	402,347	$	462,164
Net Income (Loss)	$	(3,746	)	$	13,782	$	19,560	$	57,224
Net Income (Loss) per share (diluted)	$	( 0.15	)	$	0.54	$	0.76	$	2.24

The pro forma results were calculated by applying the Company’s accounting policies and adjusting the result of American Reliable to reflect (i) impact of intercompany reinsurance with Global Indemnity Reinsurance Company, Ltd. (“Global Indemnity Reinsurance”), (ii) the impact on interest expense resulting from changes to the Company’s capital structure in connection with the acquisition, (iii) impact on investment income from the acquisition date adjustments to fair value of investments, (iv) impact on underwriting expenses from the acquisition date adjustments to fair value of deferred acquisition costs and intangible assets, (v) impact of excluding transaction costs related to the acquisition and (vi) the tax effects of the above adjustments.

The pro forma results do not include any anticipated cost synergies or other effects of the integration of American Reliable. Such pro forma amounts are not indicative of the results that actually would have occurred had the acquisition been completed on January 1, 2014, nor are they indicative of the future operating results of the combined company.

The Company is still in the process of valuing the assets acquired and liabilities assumed. As a result, the allocation of the acquisition consideration is subject to change. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the date of the acquisition as of September 30, 2015 compared to June 30, 2015 along with changes in estimates made during the quarter.

	As of
(Dollars in thousands)	September 30, 2015		June 30, 2015		Change
ASSETS:
Investments	$	226,458	$	226,458	$	—
Cash and cash equivalents		21,360		21,360		—
Premiums receivables, net		25,941		25,941		—
Accounts receivable		11,311		17,129		(5,818	)
Reinsurance receivables		13,842		12,723		1,119
Prepaid reinsurance premiums		43,506		43,506		—
Intangible assets		32,000		32,000		—
Deferred federal income taxes		1,139		1,246		(107	)
Other assets		6,550		6,550		—
Total assets		382,107		386,913		(4,806	)
LIABILITIES:
Unearned premiums		172,234		172,234		—
Unpaid losses and loss adjustment expenses		89,489		88,370		1,119
Reinsurance balances payable		13,219		13,219		—
Contingent commissions		3,876		3,876		—
Other liabilities		5,608		5,685		(77	)
Total liabilities		284,426		283,384		1,042
Estimated fair value of net assets acquired		97,681		103,529		(5,848	)
Purchase price		99,797		105,843		6,046
Goodwill	$	2,116	$	2,314	$	(198	)

Pursuant to the Stock Purchase Agreement, the Company and American Bankers Group, Inc. have performed procedures to finalize the closing balance sheet for purposes of determining the purchase price. However, the Company and American Bankers Group, Inc. were unable to come to an agreement on the carrying value of unpaid loss and loss adjustment expense reserves. As a result, the Company entered into a dispute resolution with American Bankers Group, Inc. for the carried amount of unpaid loss and loss adjustment reserves as of the acquisition date. This dispute resolution is consistent with the Stock Purchase Agreement that includes indemnification to both the Company and American Bankers Group, Inc. on future development on recorded loss and loss adjustment expenses as of December 31, 2014. On the third calendar year following the acquisition date of January 1, 2015, if loss and loss adjustment expenses for accident years 2014 and prior are lower than recorded unpaid loss and loss adjustment expenses as of December 31, 2014, Global Indemnity Group, Inc. will pay the variance plus interest of 5% compounding semi-annually to American Bankers Group, Inc. Conversely, if loss and loss adjustment expenses for accident years 2014 and prior exceed recorded unpaid loss and loss adjustment expenses as of December 31, 2014, American Bankers Group, Inc. will pay the variance plus interest of 5% compounding semi-annually to Global Indemnity Group, Inc.

As a result of the structure of this dispute resolution on unpaid loss and loss adjustment expenses, American Reliable’s accounts receivable declined by $5.8 million for amounts due from American Bankers Group, Inc. and Global Indemnity Group, Inc.’s accounts receivable due from American Bankers Group, Inc. increased by $6.5 million. This consolidated net increase in accounts receivable due from American Bankers Group, Inc. of $0.7 million is related to accrued interest on the anticipated indemnification of unpaid loss and loss adjustment expense reserves.

The transaction is being accounted for using the purchase method of accounting. The assets and liabilities acquired by the Company were adjusted to estimated fair value. The $2.1 million excess of cash and acquisition cost over the estimated fair value of assets acquired was recognized as goodwill. Under the purchase method of accounting, goodwill is not amortized but is tested for impairment at least annually.

Goodwill of $2.1 million, arising from the acquisition, consists largely of the synergies and economies of scales expected from combining the operations of Global Indemnity and American Reliable. The Company has determined that the goodwill of $2.1 million will be assigned to the Personal Lines segment. There is no tax goodwill.

An identification and valuation of intangible assets was performed that resulted in the recognition of intangible assets of $32.0 million with values assigned as follows:

(Dollars in thousands) Description	Useful Life	Amount
State insurance licenses	Indefinite	$	5,000
Value of business acquired	< 1 year		25,500
Agent relationships	10 years		900
Trade name	7 - 8 years		600
		$	32,000

Intangible assets arising from the acquisition will be deductible for income tax purposes over 15 years.

The following table presents details of the Company’s intangible assets arising from the American Reliable acquisition as of September 30, 2015:

(Dollars in thousands) Description	Useful Life	Cost		Accumulated Amortization		Net Value
State insurance licenses	Indefinite	$	5,000	$	—	$	5,000
Value of business acquired	< 1 year		25,500		22,823		2,677
Agent relationships	10 years		900		67		833
Trade name	7 - 8 years		600		64		536
		$	32,000	$	22,954	$	9,046

Amortization related to the Company’s definite lived intangible assets resulting from American Reliable acquisition was $4.1 million and $23.0 million for the quarter and nine months ended September 30, 2015.

The Company expects that amortization expense for the next five years related to the American Reliable acquisition will be as follows:

(Dollars in thousands)
October 1, 2015 to September 30, 2016	$	2,853
October 1, 2016 to September 30, 2017		176
October 1, 2017 to September 30, 2018		176
October 1, 2018 to September 30, 2019		176
October 1, 2019 to September 30, 2020		176

The fair value, gross contractual amounts due, and contractual cash flows not expected to be collected of acquired receivables are as follows:

(Dollars in thousands)	Fair Value		Gross Contractual Amounts Due		Contractual cash flows not expected to be collected
Premium receivables	$	25,941	$	26,896	$	955
Accounts receivable		11,311		11,311		—
Reinsurance receivables		12,723		12,723		—

In connection with the acquisition, the Company agreed to pay to Fox Paine & Company, LLC (“Fox Paine”) an investment banking fee of 3% of the amount paid plus the additional capital required to operate American Reliable on a standalone basis and a $1.5 million investment advisory fee, which in the aggregate, totaled $6.5 million. This amount is included in corporate and other operating expenses on the Company’s Consolidated Statements of Operations during the nine months ended September 30, 2015. As payment for these fees, 267,702 A ordinary shares of Global Indemnity were issued under the Global Indemnity plc Share Incentive Plan in May, 2015. These shares will be registered but cannot be sold until the earlier of five years or a change of control. See Note 12 for additional information on the Global Indemnity plc Share Incentive Plan.

Additional costs, mainly professional fees, of $5.1 million were incurred in connection with the acquisition of American Reliable. Of this amount, $3.3 million was recorded as corporate and other operating expenses on the Company’s Consolidated Statements of Operations during the year ended December 31, 2014 and $1.8 million was recorded as corporate and other operating expenses on the Company’s Consolidated Statements of Operation during the nine months ended September 30, 2015.

During the nine months ended September 30, 2015, the Company paid approximately $1.6 million in employee compensation related cost, which were related to periods prior to the Acquisition. These costs were accrued by American Reliable and were included in the fair value of net assets acquired by Global Indemnity Group, Inc. on January 1, 2015.

Geographic Concentration

The following table sets forth the geographic distribution of American Reliable’s gross premiums written, excluding business that is ceded under a 100% quota share reinsurance agreement to American Bankers Insurance Company of Florida, for the year ended December 31, 2014:

	Year Ended December 31, 2014
(Dollars in thousands)	Amount		Percent
Texas	$	32,760		12.3	%
California		25,556		9.6
North Carolina		23,040		8.7
Arizona		17,722		6.7
Louisiana		17,522		6.6
New York		13,408		5.0
Florida		12,361		4.6
Oklahoma		9,977		3.7
Georgia		8,768		3.3
New Jersey		6,925		2.6
Subtotal		168,039		63.1
All other states		98,264		36.9
Total	$	266,303		100.0	%

Marketing and Distribution

American Reliable distributes its insurance products primarily through a group of approximately 290 general and specialty agents and 332 retail agents in Arizona and New Mexico. Of the Company’s non-affiliated general and specialty agents, the top five accounted for 23.9% of American Reliable’s gross premiums written for the year ended December 31, 2014. One agency represented 6.8% of American Reliable’s gross premiums written for the year ended December 31, 2014. There is no agency which accounted for more than 10.0% of American Reliable’s revenue for the year ended December 31, 2014.

Dividend Limitations

The maximum amount of dividends, which can be paid by Arizona domiciled insurance companies without prior approval of the Insurance Commissioner, is subject to certain regulatory restrictions relating to statutory surplus. Specifically, an insurance company may pay dividends equal to the lesser of net income or 10% of its statutory surplus without specific approval from the Insurance Commissioner. At December 31, 2014, the maximum dividend, which may be distributed without approval in 2015, is zero. Dividends in excess of this amount are considered extraordinary.

Reinsurance

As a result of the acquisition, the following reinsurance treaties were entered into:

Earthquake Property Catastrophe Excess of Loss – Effective January 1, 2015, the Company purchased an earthquake property catastrophe excess of loss treaty which provides occurrence coverage for earthquake catastrophe losses of $30 million in excess of $5 million for American Reliable property business. This treaty provides for one full reinstatement of coverage at 100% additional premium as to time and pro rata as to amount of limit reinstated. This treaty was cancelled on May 31, 2015 and rolled into a new combined master catastrophe treaty which was effective June 1, 2015.

American Reliable Property Per Risk Excess of Loss – Effective January 1, 2015, American Reliable renewed its property per risk excess of loss treaty covering business underwritten by American Reliable. This treaty provides coverage in two layers: $1 million per risk in excess of $1 million per risk, and $3 million per risk in excess of $2 million per risk. The first layer is subject to a $2 million limit of liability for all risks involved in one loss occurrence, and the second layer is subject to a $6 million limit for all risks involved in one loss occurrence.

100% Ceded Quota Share to American Bankers – Effective December 1, 2014, American Reliable entered into four treaties to cede 100% of its liabilities related to certain businesses to American Bankers Insurance Company that were not included in the acquisition of American Reliable. For the quarter and nine months ended September 30, 2015, American Reliable recorded ceded written premiums of $18.7 million and $41.7 million, respectively, and ceded earned premiums of $13.3 million and $50.8 million, respectively, to American Bankers Insurance Company.

100% Assumed Quota Share from American Bankers – Effective December 1, 2014, American Reliable entered into two treaties to assume 100% of its liabilities from various insurers owned by Assurant, Inc. for business included in the acquisition but not written directly by American Reliable. For the quarter and nine months ended September 30, 2015, American Reliable recorded assumed written premiums of $21.4 million and $69.3 million, respectively, and assumed earned premiums of $22.8 million and $69.8 million, respectively, from insurance companies owned by Assurant, Inc.

The effect of reinsurance on premiums written and earned by American Reliable is as follows:

(Dollars in thousands)	Written		Earned
For the quarter ended September 30, 2015:
Direct business	$	65,824	$	57,825
Reinsurance assumed		21,525		22,927
Reinsurance ceded		24,047		18,620
Net premiums	$	63,302	$	62,132

(Dollars in thousands)	Written		Earned
For the nine months ended September 30, 2015:
Direct business	$	179,979	$	182,851
Reinsurance assumed		69,585		70,120
Reinsurance ceded		52,779		61,499
Net premiums	$	196,785	$	191,472

Commitments

As a result of the acquisition, the Company assumed operating leases related to the operations of American Reliable. Rental expense under these operating leases was $0.3 million and $0.8 million for the quarter and nine months ended September 30, 2015, respectively. At September 30, 2015, future minimum cash payments under non-cancelable operating leases related to the operations of American Reliable were as follows:

(Dollars in thousands)
October 1, 2015 to September 30, 2016	$	1,032
October 1, 2016 to September 30, 2017		941
October 1, 2017 to September 30, 2018		937
October 1, 2018 to September 30, 2019		143
Total	$	3,053

At the time of the acquisition, one of the Company’s policy administration systems was under development. In April, 2015, the Company entered into an agreement with an unrelated third party to build out a rate, quote, bind and issue application for the Company’s agriculture products. This project has an estimated cost of approximately $2.6 million plus reimbursable travel and related expenses.

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Summarized Information of Location and Gross Amount of Derivatives' Fair Value in Consolidated Balance Sheets (Detail) - Not Designated as Hedging Instrument - Interest Rate Swap - Other Liabilities - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Derivatives, Fair Value [Line Items]
Notional Amount	$ 200,000	$ 200,000
Fair Value	$ (18,522)	$ (13,675)

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Geographic Distribution of Gross Premiums Written (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Business Acquisition [Line Items]
Gross premiums written, Amount	$ 150,148	$ 67,098	$ 459,532	$ 227,200
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk
Business Acquisition [Line Items]
Gross premiums written, Amount					$ 266,303
Gross premiums written, Percent					100.00%
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk | TEXAS
Business Acquisition [Line Items]
Gross premiums written, Amount					$ 32,760
Gross premiums written, Percent					12.30%
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk | CALIFORNIA
Business Acquisition [Line Items]
Gross premiums written, Amount					$ 25,556
Gross premiums written, Percent					9.60%
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk | NORTH CAROLINA
Business Acquisition [Line Items]
Gross premiums written, Amount					$ 23,040
Gross premiums written, Percent					8.70%
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk | ARIZONA
Business Acquisition [Line Items]
Gross premiums written, Amount					$ 17,722
Gross premiums written, Percent					6.70%
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk | LOUISIANA
Business Acquisition [Line Items]
Gross premiums written, Amount					$ 17,522
Gross premiums written, Percent					6.60%
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk | NEW YORK
Business Acquisition [Line Items]
Gross premiums written, Amount					$ 13,408
Gross premiums written, Percent					5.00%
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk | FLORIDA
Business Acquisition [Line Items]
Gross premiums written, Amount					$ 12,361
Gross premiums written, Percent					4.60%
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk | OKLAHOMA
Business Acquisition [Line Items]
Gross premiums written, Amount					$ 9,977
Gross premiums written, Percent					3.70%
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk | GEORGIA
Business Acquisition [Line Items]
Gross premiums written, Amount					$ 8,768
Gross premiums written, Percent					3.30%
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk | NEW JERSEY
Business Acquisition [Line Items]
Gross premiums written, Amount					$ 6,925
Gross premiums written, Percent					2.60%
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk | Subtotal
Business Acquisition [Line Items]
Gross premiums written, Amount					$ 168,039
Gross premiums written, Percent					63.10%
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk | All other states
Business Acquisition [Line Items]
Gross premiums written, Amount					$ 98,264
Gross premiums written, Percent					36.90%

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2015

Income before Income Taxes from its Non-U.S. Subsidiaries and U.S. Subsidiaries

The Company’s income before income taxes from its non-U.S. subsidiaries and U.S. subsidiaries, including the results of the quota share and stop-loss agreements between Global Indemnity Reinsurance and the Insurance Operations, for the quarters and nine months ended September 30, 2015 and 2014 were as follows:

Quarter Ended September 30, 2015: (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries			Eliminations			Total
Revenues:
Gross premiums written	$	67,543		$	140,268		$	(57,663	)	$	150,148
Net premiums written	$	67,534		$	54,963		$	—		$	122,497
Net premiums earned	$	70,532		$	54,175		$	—		$	124,707
Net investment income		10,644			4,783			(6,575	)		8,852
Net realized investment losses		(1,256	)		(9,522	)		—			(10,778	)
Other income		(11	)		1,290			—			1,279
Total revenues		79,909			50,726			(6,575	)		124,060
Losses and Expenses:
Net losses and loss adjustment expenses		39,849			37,842			—			77,691
Acquisition costs and other underwriting expenses		30,504			20,430			—			50,934
Corporate and other operating expenses		1,648			1,919			—			3,567
Interest expense		1,501			6,669			(6,575	)		1,595
Income (loss) before income taxes	$	6,407		$	(16,134	)	$	—		$	(9,727	)

Quarter Ended September 30, 2014: (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries			Eliminations			Total
Revenues:
Gross premiums written	$	38,387		$	56,491		$	(27,780	)	$	67,098
Net premiums written	$	38,366		$	24,896		$	—		$	63,262
Net premiums earned	$	43,238		$	24,790		$	—		$	68,028
Net investment income		7,713			3,655			(4,841	)		6,527
Net realized investment gains (losses)		(10	)		1,168			—			1,158
Other income (loss)		(38	)		164			—			126
Total revenues		50,903			29,777			(4,841	)		75,839
Losses and Expenses:
Net losses and loss adjustment expenses		18,939			17,715			—			36,654
Acquisition costs and other underwriting expenses		17,762			9,696			—			27,458
Corporate and other operating expenses		1,156			2,325			—			3,481
Interest expense		193			4,766			(4,841	)		118
Income before income taxes	$	12,853		$	(4,725	)	$	—		$	8,128

Nine Months Ended September 30, 2015: (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries			Eliminations			Total
Revenues:
Gross premiums written	$	289,940		$	411,310		$	(241,718	)	$	459,532
Net premiums written	$	289,892		$	104,714		$	—		$	394,606
Net premiums earned	$	214,667		$	166,254		$	—		$	380,921
Net investment income		32,146			13,594			(19,506	)		26,234
Net realized investment losses		(1,643	)		(5,573	)		—			(7,216	)
Other income (loss)		(77	)		2,485			—			2,408
Total revenues		245,093			176,760			(19,506	)		402,347
Losses and Expenses:
Net losses and loss adjustment expenses		115,654			111,216			—			226,870
Acquisition costs and other underwriting expenses		92,368			57,750			—			150,118
Corporate and other operating expenses		3,395			16,046			—			19,441
Interest expense		2,325			19,816			(19,506	)		2,635
Income (loss) before income taxes	$	31,351		$	(28,068	)	$	—		$	3,283

Nine Months Ended September 30, 2014: (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries		Eliminations			Total
Revenues:
Gross premiums written	$	139,714		$	170,038	$	(82,552	)	$	227,200
Net premiums written	$	138,677		$	73,818	$	—		$	212,495
Net premiums earned	$	126,551		$	75,038	$	—		$	201,589
Net investment income		22,947			13,980		(14,439	)		22,488
Net realized investment gains		1,017			39,209		—			40,226
Other income (loss)		(41	)		490		—			449
Total revenues		150,474			128,717		(14,439	)		264,752
Losses and Expenses:
Net losses and loss adjustment expenses		51,818			61,678		—			113,496
Acquisition costs and other underwriting expenses		52,637			28,477		—			81,114
Corporate and other operating expenses		4,034			5,580		—			9,614
Interest expense		647			14,420		(14,439	)		628
Income before income taxes	$	41,338		$	18,562	$	—		$	59,900

Components of Income Tax Expense (Benefit)

The following table summarizes the components of income tax expense (benefit):

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Current income tax expense:
Foreign	$	67		$	39		$	228		$	164
U.S. Federal		(579	)		(1,571	)		(2,126	)		5,980
Total current income tax expense (benefit)		(512	)		(1,532	)		(1,898	)		6,144
Deferred income tax expense (benefit):
U.S. Federal		(5,469	)		(101	)		(8,984	)		1,964
Total deferred income tax expense (benefit)		(5,469	)		(101	)		(8,984	)		1,964
Total income tax expense (benefit)	$	(5,981	)	$	(1,633	)	$	(10,882	)	$	8,108

Differences in Tax and Estimated Tax Provisions at Weighted Average Tax Rate

The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate:

	Quarters Ended September 30,
	2015						2014
(Dollars in thousands)	Amount			% of Pre- Tax Income			Amount			% of Pre- Tax Income
Expected tax provision at weighted average rate	$	(5,580	)		(57.4	%)	$	(1,614	)		(19.9	%)
Adjustments:
Tax exempt interest		(107	)		(1.1	)		(120	)		(1.5	)
Dividend exclusion		(175	)		(1.8	)		(229	)		(2.8	)
Effective tax rate adjustment		—			0.0			288			3.5
Other		(119	)		(1.2	)		42			0.6
Actual tax on continuing operations	$	(5,981	)		(61.5	%)	$	(1,633	)		(20.1	%)

The effective income tax benefit rate for the quarter ended September 30, 2015 was 61.5%, compared to an effective income tax benefit rate of 20.1%, for the quarter ended September 30, 2014. The increase in the effective tax benefit rate is primarily due to capital losses in the quarter ended September 30, 2015. Taxes were computed using a discrete period computation because a reliable estimate of an effective tax rate could not be made.

	Nine Months Ended September 30,
	2015						2014
(Dollars in thousands)	Amount			% of Pre- Tax Income			Amount			% of Pre- Tax Income
Expected tax provision at weighted average rate	$	(9,595	)		(292.3	%)	$	6,649			11.1	%
Adjustments:
Tax exempt interest		(326	)		(9.9	)		(490	)		(0.8	)
Dividend exclusion		(588	)		(17.9	)		(1,186	)		(2.0	)
Effective tax rate adjustment		—			0.0			2,600			4.3
Other		(373	)		(11.4	)		535			0.9
Actual tax on continuing operations	$	(10,882	)		(331.5	%)	$	8,108			13.5	%

Tax Effects of Temporary Differences That Give Rise to Significant Portions of Net Deferred Tax Assets

The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at September 30, 2015 and December 31, 2014 are presented below:

(Dollars in thousands)	September 30, 2015		December 31, 2014
Deferred tax assets:
Discounted unpaid losses and loss adjustment expenses	$	8,739	$	7,492
Unearned premiums		8,117		3,409
Alternative minimum tax credit carryover		10,587		10,473
Net operating loss carryforward		6,264		—
Partnership K1 basis differences		245		145
Capital gain on derivative instruments		6,483		4,786
Investment impairments		2,709		379
Stock options		2,578		2,048
Deferred acquisition costs		149		187
Stat-to-GAAP reinsurance reserve		1,364		1,424
Intercompany transfers		1,738		1,919
Depreciation and amortization		93		—
Other		4,115		3,050
Total deferred tax assets		53,181		35,312
Deferred tax liabilities:
PGAAP adjustment for American Reliable		6,095		—
Intangible assets		4,615		3,220
Unrealized gain on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income		4,827		10,263
Investment basis differences		1,066		692
Depreciation and amortization		—		16
Other		769		871
Total deferred tax liabilities		17,372		15,062
Total net deferred tax assets	$	35,809	$	20,250

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis

The following table presents information about the Company’s invested assets and derivative instruments measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.

As of September 30, 2015	Fair Value Measurements
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasury and agency obligations	$	91,341	$	5,934	$	—	$	97,275
Obligations of states and political subdivisions		—		235,400		—		235,400
Mortgage-backed securities		—		188,403		—		188,403
Commercial mortgage-backed securities		—		160,076		—		160,076
Asset-backed securities		—		278,834		—		278,834
Corporate bonds		—		461,294		—		461,294
Foreign corporate bonds		—		127,603		—		127,603
Total fixed maturities		91,341		1,457,544		—		1,548,885
Common stock		106,666		—		—		106,666
Other invested assets		—		—		33,555		33,555
Total assets measured at fair value	$	198,007	$	1,457,544	$	33,555	$	1,689,106
Liabilities:
Derivative instruments	$	—	$	18,522	$	—	$	18,522
Total liabilities measured at fair value	$	—	$	18,522	$	—	$	18,522

As of December 31, 2014	Fair Value Measurements
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasury and agency obligations	$	74,765	$	6,002	$	—	$	80,767
Obligations of states and political subdivisions		—		191,473		—		191,473
Mortgage-backed securities		—		208,759		—		208,759
Commercial mortgage-backed securities		—		133,158		—		133,158
Asset-backed securities		—		178,263		—		178,263
Corporate bonds		—		383,416		—		383,416
Foreign corporate bonds		—		107,639		—		107,639
Total fixed maturities		74,765		1,208,710		—		1,283,475
Common stock		122,048		—		—		122,048
Other invested assets		—		—		33,663		33,663
Total assets measured at fair value	$	196,813	$	1,208,710	$	33,663	$	1,439,186
Liabilities:
Derivative instruments	$	—	$	13,675	$	—	$	13,675
Total liabilities measured at fair value	$	—	$	13,675	$	—	$	13,675

Current Fair Value of Debt

For the Company’s material debt arrangements, the current fair value of the Company’s debt was as follows:

(Dollars in thousands)	Carrying Value		Fair Value
Margin Borrowing Facilities	$	195,787	$	195,787
7.75% Subordinated Notes due 2045 (1)		96,357		90,117
Total	$	292,144	$	285,904

(1) As of September 30, 2015, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.6 million.

Changes in Level 3 Investments Measured at Fair Value on a Recurring Basis

The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the quarters and nine months ended September 30, 2015 and 2014:

	Quarters Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands)	2015		2014			2015			2014
Beginning balance	$	31,176	$	15,034		$	33,663		$	3,489
Total gains (losses) (realized / unrealized):
Included in accumulated other comprehensive income (loss)		23		(404	)		481			(834	)
Investment Income:
Equity in Limited Partnership		106		—			1,448			—
Purchases		2,250		6,500			2,250			18,475
Distributions		—		(12	)		(4,287	)		(12	)
Ending balance	$	33,555	$	21,118		$	33,555		$	21,118

Fair Value and Future Funding Commitments Related to These Investments

The following table provides the fair value and future funding commitments related to these investments at September 30, 2015 and December 31, 2014.

	September 30, 2015				December 31, 2014
(Dollars in thousands)	Fair Value		Future Funding Commitment		Fair Value		Future Funding Commitment
Equity Fund, LP (1)	$	3,348	$	2,391	$	3,401	$	2,436
Real Estate Fund, LP (2)		—		—		—		—
European Non-Performing Loan Fund, LP (3)		30,207		21,314		30,262		20,064
Total	$	33,555	$	23,705	$	33,663	$	22,500

(1) This limited partnership invests in companies from various business sectors whereby the partnership has acquired control of the operating business as a lead or organizing investor. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company anticipates its interest in this partnership to be redeemed during the 4^th quarter of 2015.

(2) This limited partnership invests in real estate assets through a combination of direct or indirect investments in partnerships, limited liability companies, mortgage loans, and lines of credit. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company continues to hold an investment in this limited partnership and has written the fair value down to zero.

(3) This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. Based on the terms of the partnership agreement, the Company anticipates its interest in this partnership to be redeemed in 2020.

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Schedule of Proceeds From Sales of Available for Sale Securities (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities	$ 290,580	$ 350,179
Equity securities	34,161	$ 181,203
Preferred Stock
Schedule of Available-for-sale Securities [Line Items]
Equity securities	$ 1,540

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Effect of Reinsurance on Premiums Written and Earned (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
Net premiums written	$ 122,497	$ 63,262	$ 394,606	$ 212,495
Net premiums earned	124,707	$ 68,028	380,921	$ 201,589
American Reliable Insurance Company
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
Direct business	65,824		179,979
Reinsurance assumed	21,525		69,585
Reinsurance ceded	24,047		52,779
Net premiums written	63,302		196,785
Direct business	57,825		182,851
Reinsurance assumed	22,927		70,120
Reinsurance ceded	18,620		61,499
Net premiums earned	$ 62,132		$ 191,472

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Liability for Unpaid Losses and Loss Adjustment Expenses (Tables)

9 Months Ended

Sep. 30, 2015

Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses

Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:

	Quarters Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands)	2015			2014		2015			2014
Balance at beginning of period	$	769,299		$	754,595	$	675,472		$	779,466
Less: Ceded reinsurance receivables		138,497			178,998		123,201			192,491
Net balance at beginning of period		630,802			575,597		552,271			586,975
Purchased reserves, gross		1,119			—		89,489			—
Less: Purchased reserves ceded		(1,119	)		—		(12,800	)		—
Purchased reserves, net		—			—		76,689			—
Incurred losses and loss adjustment expenses related to:
Current year		86,203			36,501		244,041			119,464
Prior years		(8,512	)		153		(17,171	)		(5,969	)
Total incurred losses and loss adjustment expenses		77,691			36,654		226,870			113,495
Paid losses and loss adjustment expenses related to:
Current year		53,512			15,480		113,573			39,472
Prior years		56,385			28,704		143,661			92,931
Total paid losses and loss adjustment expenses		109,897			44,184		257,234			132,403
Net balance at end of period		598,596			568,067		598,596			568,067
Plus: Ceded reinsurance receivables		130,913			171,864		130,913			171,864
Balance at end of period	$	729,509		$	739,931	$	729,509		$	739,931

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Debt (Tables)

9 Months Ended

Sep. 30, 2015

Outstanding Debt

The Company’s outstanding debt consisted of the following at September 30, 2015 and December 31, 2014:

(Dollars in thousands)	September 30, 2015		December 31, 2014
Margin Borrowing Facilities	$	195,787	$	174,673
7.75% Subordinated Notes due 2045		96,357		—
Total	$	292,144	$	174,673

Amounts Recorded for the Margin Borrowing Facilities and 7.75% Subordinated Notes

The following tables represent the amounts recorded for the margin borrowing facilities and 7.75% subordinated notes as of September 30, 2015 and December 31, 2014:

	September 30, 2015
	Outstanding Principal		Unamortized Debt Issuance Costs			Net Carrying Amount
Margin Borrowing Facilities	$	195,787	$	—		$	195,787
7.75% Subordinated Notes due 2045		100,000		(3,643	)		96,357
	$	295,787	$	(3,643	)	$	292,144

	December 31, 2014
	Outstanding Principal		Unamortized Debt Issuance Costs		Net Carrying Amount
Margin Borrowing Facilities	$	174,673	$	—	$	174,673
7.75% Subordinated Notes due 2045		—		—		—
	$	174,673	$	—	$	174,673

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Principles of Consolidation and Basis of Presentation

9 Months Ended

Sep. 30, 2015

Principles of Consolidation and Basis of Presentation

1. Principles of Consolidation and Basis of Presentation

Global Indemnity plc (“Global Indemnity” or “the Company”) was incorporated on March 9, 2010 and is domiciled in Ireland. Global Indemnity replaced the Company’s predecessor, United America Indemnity, Ltd., as the ultimate parent company as a result of a re-domestication transaction in July, 2010. The Company’s A ordinary shares are publicly traded on the NASDAQ Global Select Market under the trading symbol “GBLI.”

Starting in the 1^st quarter of 2015, the Company manages its business through three business segments: Commercial Lines, managed in Bala Cynwyd, offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs; Personal Lines, managed in Scottsdale, AZ, offers specialty personal lines and agricultural coverage; and Reinsurance Operations, managed in Bermuda, provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. The Commercial Lines and Personal Lines segments comprise the Company’s U.S. Insurance Operations. See Note 14 for additional information regarding segments.

The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and nine months ended September 30, 2015 and 2014 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2014 Annual Report on Form 10-K.

The consolidated financial statements include the accounts of Global Indemnity and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

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Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2015

Premium and Losses

Estimated Earned Premium and Incurred Losses, and Net Balances Due

The Company estimated that the following earned premium and incurred losses related to these agreements have been assumed by Global Indemnity Reinsurance from Hiscox Bermuda:

	Quarters Ended September 30,
(Dollars in thousands)	2015			2014
Assumed earned premium	$	47		$	1,823
Assumed losses and loss adjustment expenses		(167	)		504
	Nine Months Ended September 30,
(Dollars in thousands)	2015			2014
Assumed earned premium	$	2,294		$	4,639
Assumed losses and loss adjustment expenses		476			1,349

Receivables

Estimated Earned Premium and Incurred Losses, and Net Balances Due

Net balances due to Global Indemnity Reinsurance under this agreement are as follows:

(Dollars in thousands)	September 30, 2015			December 31, 2014
Net receivable (payable) balance	$	(61	)	$	2,897

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Shareholders' Equity - Additional Information (Detail) - $ / shares	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Shareholders Equity [Line Items]
Shares repurchased	0	0
Ordinary Shares A | Treasury Shares
Shareholders Equity [Line Items]
A ordinary shares purchased			11,895	5,444	5,444
Stock repurchase program, price per share of shares purchased			$ 28.03	$ 25.46

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Intangible Assets (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Acquired Intangible Assets Amortization [Line Items]
Net Value	$ 26,417	$ 17,636
American Reliable Insurance Company
Acquired Intangible Assets Amortization [Line Items]
Cost	32,000
Accumulated Amortization	22,954
Net Value	$ 9,046
American Reliable Insurance Company | State insurance licenses
Acquired Intangible Assets Amortization [Line Items]
Useful Life	Indefinite
Cost and Net Value	$ 5,000
Value of Business Acquired | American Reliable Insurance Company
Acquired Intangible Assets Amortization [Line Items]
Cost	25,500
Accumulated Amortization	(22,823)
Net Value	$ 2,677
Value of Business Acquired | American Reliable Insurance Company | Maximum
Acquired Intangible Assets Amortization [Line Items]
Useful Life	1 year
Agent Relationships | American Reliable Insurance Company
Acquired Intangible Assets Amortization [Line Items]
Useful Life	10 years
Cost	$ 900
Accumulated Amortization	(67)
Net Value	833
Trade names | American Reliable Insurance Company
Acquired Intangible Assets Amortization [Line Items]
Cost	600
Accumulated Amortization	(64)
Net Value	$ 536
Trade names | American Reliable Insurance Company | Minimum
Acquired Intangible Assets Amortization [Line Items]
Useful Life	7 years
Trade names | American Reliable Insurance Company | Maximum
Acquired Intangible Assets Amortization [Line Items]
Useful Life	8 years

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Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 20,102	$ 34,001	$ 23,384	$ 54,028	$ 54,028
Other comprehensive income (loss) before reclassification	(9,056)	(7,523)	(9,622)	6,238
Amounts reclassified from accumulated other comprehensive income (loss)	2,199	(1,524)	(517)	(35,312)
Other comprehensive income (loss), net of taxes	(6,857)	(9,047)	(10,139)	(29,074)
Ending balance	13,245	24,954	13,245	24,954	23,384
Unrealized Gains and Losses on Available for Sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	20,201	33,928	23,647	53,950	53,950
Other comprehensive income (loss) before reclassification	(9,009)	(7,295)	(9,413)	6,396
Amounts reclassified from accumulated other comprehensive income (loss)	2,129	(1,523)	(913)	(35,236)
Other comprehensive income (loss), net of taxes	(6,880)	(8,818)	(10,326)	(28,840)
Ending balance	13,321	25,110	13,321	25,110	23,647
Foreign Currency Items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(99)	73	(263)	78	78
Other comprehensive income (loss) before reclassification	(47)	(228)	(209)	(158)
Amounts reclassified from accumulated other comprehensive income (loss)	70	(1)	396	(76)
Other comprehensive income (loss), net of taxes	23	(229)	187	(234)
Ending balance	$ (76)	$ (156)	$ (76)	$ (156)	$ (263)

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Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Tax [Line Items]
Effective income tax rate	(61.50%)	(20.10%)	(331.50%)	13.50%
Deferred tax assets, valuation allowance	$ 0		$ 0		$ 0
Alternative minimum tax credit carry forward	10,587,000		10,587,000		10,473,000
Net operating loss carryforwards	$ 6,264,000		$ 6,264,000		$ 0
UNITED STATES
Income Tax [Line Items]
Statutory income tax rates			35.00%
BERMUDA
Income Tax [Line Items]
Statutory income tax rates			0.00%
CAYMAN ISLANDS
Income Tax [Line Items]
Statutory income tax rates			0.00%
GIBRALTAR
Income Tax [Line Items]
Statutory income tax rates			0.00%
LUXEMBOURG
Income Tax [Line Items]
Statutory income tax rates			29.22%
IRELAND | Non Trading Income
Income Tax [Line Items]
Statutory income tax rates			25.00%
IRELAND | Capital Gain
Income Tax [Line Items]
Statutory income tax rates			33.00%
IRELAND | Trading Income
Income Tax [Line Items]
Statutory income tax rates			12.50%

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Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fixed maturities:
Available for sale, at fair value (amortized cost: $1,539,192 and $1,272,948)	$ 1,548,885	$ 1,283,475
Equity securities:
Available for sale, at fair value (cost: $99,257 and $99,297)	106,666	122,048
Other invested assets:
Available for sale, at fair value (cost: $31,137 and $33,174)	33,555	33,663
Total investments	1,689,106	1,439,186
Cash and cash equivalents	146,686	58,823
Restricted cash		113,696
Premiums receivable, net	95,438	56,586
Reinsurance receivables, net	134,187	125,718
Funds held by ceding insurers	24,523	25,176
Federal income taxes receivable	5,187	3,139
Deferred federal income taxes	35,809	20,250
Deferred acquisition costs	57,398	25,238
Intangible assets	26,417	17,636
Goodwill	6,936	4,820
Prepaid reinsurance premiums	39,150	4,725
Receivable for securities sold		60
Other assets	57,782	34,980
Total assets	2,318,619	1,930,033
Liabilities:
Unpaid losses and loss adjustment expenses	729,509	675,472
Unearned premiums	297,657	120,815
Ceded balances payable	4,110	2,800
Contingent commissions	14,397	12,985
Debt	292,144	174,673
Payable for securities	4,126
Other liabilities	54,964	34,998
Total liabilities	$ 1,396,907	$ 1,021,743
Commitments and contingencies (Note 11)
Shareholders' equity:
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued: 16,748,528 and 16,331,577, respectively; A ordinary shares outstanding: 13,671,818 and 13,266,762 , respectively; B ordinary shares issued and outstanding: 12,061,370 and 12,061,370, respectively	$ 3	$ 3
Additional paid-in capital	529,319	519,590
Accumulated other comprehensive income, net of taxes	13,245	23,384
Retained earnings	480,882	466,717
Total shareholders' equity	921,712	908,290
Total liabilities and shareholders' equity	2,318,619	1,930,033
Ordinary Shares A
Shareholders' equity:
A ordinary shares in treasury, at cost: 3,076,710 and 3,064,815 shares, respectively	(101,737)	(101,404)
Total shareholders' equity	$ 2	$ 2

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Future Minimum Cash Payments Under Non-cancelable Operating Leases (Detail) - American Reliable Insurance Company $ in Thousands	Sep. 30, 2015 USD ($)
Future Minimum Payments Under Non-Cancelable Operating Leases With Initial Terms Of One-Year Or More [Line Items]
October 1, 2015 to September 30, 2016	$ 1,032
October 1, 2016 to September 30, 2017	941
October 1, 2017 to September 30, 2018	937
October 1, 2018 to September 30, 2019	143
Total	$ 3,053

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Subsequent Events - Additional Information (Detail) - USD ($)		3 Months Ended		9 Months Ended
	Oct. 29, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Subsequent Event [Line Items]
Net realized investment gain		$ (10,778,000)	$ 1,158,000	$ (7,216,000)	$ 40,226,000
Fox Paine & Company, LLC | Redemption Agreement | Had the redemption occurred on or prior to September 30, 2015
Subsequent Event [Line Items]
Ordinary shares, shares outstanding		17,472,318		17,472,318
Subsequent Events | Fox Paine & Company, LLC | Redemption Agreement
Subsequent Event [Line Items]
Ordinary shares agreed to redeem, shares	8,260,870
Ordinary shares agreed to redeem	$ 190,000,000
Proceeds from sale of securities	279,900,000
Net realized investment gain	1,600,000
Repayments under margin borrowing facilities	$ 102,000,000
Subsequent Events | Fox Paine & Company, LLC | Additional Redemption Agreement
Subsequent Event [Line Items]
Ordinary shares agreed to redeem, shares	3,376,561
Ordinary shares agreed to redeem	$ 77,660,903
Redemption agreement expiration date	Dec. 31, 2019
Subsequent Events | Fox Paine & Company, LLC | Redemption Agreement in Discussions
Subsequent Event [Line Items]
Ordinary shares agreed to redeem, shares	1,146,716

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Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Additional Paid-in Capital	Accumulated other comprehensive income, net of deferred income tax	Retained Earnings	Treasury Shares	Ordinary Shares A	Ordinary Shares A Treasury Shares	Ordinary Shares B
Number at Dec. 31, 2013					3,059,371	16,200,406		12,061,370
Ordinary shares issued under share incentive plans						94,563
A ordinary shares purchased							5,444
Ordinary shares issued to directors						36,608
Number at Dec. 31, 2014					3,064,815	16,331,577		12,061,370
Balance at Dec. 31, 2013		$ 516,653	$ 54,028	$ 403,861	$ (101,265)	$ 2		$ 1
Other comprehensive income (loss):
Change in unrealized holding gains (losses)			(30,299)
Change in other than temporary impairment losses recognized in other comprehensive income			(4)
Unrealized foreign currency translation gains (losses)			(341)
Other comprehensive income (loss), net of taxes			(30,644)
A ordinary shares purchased, at cost							$ (139)
Share compensation plans		2,900
Net income				62,856
Tax benefit on share-based compensation expense		37
Balance at Dec. 31, 2014	$ 908,290	519,590	23,384	466,717	$ (101,404)	$ 2		$ 1
Ordinary shares issued under share incentive plans						121,812
A ordinary shares purchased							11,895
Ordinary shares issued to directors						27,437
Ordinary shares issued in connection with American Reliable acquisition						267,702
Number at Sep. 30, 2015					3,076,710	16,748,528		12,061,370
Other comprehensive income (loss):
Change in unrealized holding gains (losses)			(10,319)
Change in other than temporary impairment losses recognized in other comprehensive income			(7)
Unrealized foreign currency translation gains (losses)	187		187
Other comprehensive income (loss), net of taxes	(10,139)		(10,139)
A ordinary shares purchased, at cost							$ (333)
Share compensation plans		9,671
Net income	14,165			14,165
Tax benefit on share-based compensation expense		58
Balance at Sep. 30, 2015	$ 921,712	$ 529,319	$ 13,245	$ 480,882	$ (101,737)	$ 2		$ 1

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Summary of Business Segment Information (Detail) - USD ($) $ in Thousands		3 Months Ended				9 Months Ended
		Sep. 30, 2015		Sep. 30, 2014		Sep. 30, 2015		Sep. 30, 2014		Dec. 31, 2014
Revenues:
Gross premiums written		$ 150,148		$ 67,098		$ 459,532		$ 227,200
Net premiums written		122,497		63,262		394,606		212,495
Net premiums earned		124,707		68,028		380,921		201,589
Other income (loss)		1,279		126		2,408		449
Total revenues		125,986		68,154		383,329		202,038
Losses and Expenses:
Net losses and loss adjustment expenses		77,691		36,654		226,870		113,496
Acquisition costs and other underwriting expenses		50,934		27,458		150,118		81,114
Income (loss) from segments		(2,639)		4,042		6,341		7,428
Unallocated Items:
Net investment income		8,852		6,527		26,234		22,488
Net realized investment gains		(10,778)		1,158		(7,216)		40,226
Corporate and other operating expenses		(3,567)		(3,481)		(19,441)		(9,614)
Interest expense		(1,595)		(118)		(2,635)		(628)
Income (loss) before income taxes		(9,727)		8,128		3,283		59,900
Income tax benefit		5,981		1,633		10,882		(8,108)
Net income		(3,746)		9,761		14,165		51,792
Total assets		2,318,619		1,879,815		2,318,619		1,879,815		$ 1,930,033
Commercial Lines
Revenues:
Gross premiums written	[1]	52,920		56,489		161,746		170,037
Net premiums written	[1]	49,325		52,674		149,647		156,369
Net premiums earned	[1]	48,916		52,462		149,244		158,809
Other income (loss)	[1]	102		164		420		490
Total revenues	[1]	49,018		52,626		149,664		159,299
Losses and Expenses:
Net losses and loss adjustment expenses	[1]	22,832		29,575		82,474		97,047
Acquisition costs and other underwriting expenses	[1]	20,686	[2]	21,790	[3]	61,317	[4]	66,068	[5]
Income (loss) from segments	[1]	5,500		1,261		5,873		(3,816)
Unallocated Items:
Total assets	[1]	1,005,435		1,229,463		1,005,435		1,229,463
Personal Lines
Revenues:
Gross premiums written	[1]	87,349				249,564
Net premiums written	[1]	63,302				196,785
Net premiums earned	[1]	62,132				191,472
Other income (loss)	[1]	1,188				2,065
Total revenues	[1]	63,320				193,537
Losses and Expenses:
Net losses and loss adjustment expenses	[1]	48,899				129,997
Acquisition costs and other underwriting expenses	[1]	25,779	[6]			74,590	[7]
Income (loss) from segments	[1]	(11,358)				(11,050)
Unallocated Items:
Total assets	[1]	572,807				572,807
Reinsurance Operations
Revenues:
Gross premiums written	[8]	9,879		10,609		48,222		57,163
Net premiums written	[8]	9,870		10,588		48,174		56,126
Net premiums earned	[8]	13,659		15,566		40,205		42,780
Other income (loss)	[8]	(11)		(38)		(77)		(41)
Total revenues	[8]	13,648		15,528		40,128		42,739
Losses and Expenses:
Net losses and loss adjustment expenses	[8]	5,960		7,079		14,399		16,449
Acquisition costs and other underwriting expenses	[8]	4,469		5,668		14,211		15,046
Income (loss) from segments	[8]	3,219		2,781		11,518		11,244
Unallocated Items:
Total assets	[8],[9]	$ 740,377		$ 650,352		$ 740,377		$ 650,352

[1] Includes business ceded to the Company's Reinsurance Operations.

[2] Includes federal excise tax of $258 relating to cessions from Commercial Lines to Reinsurance Operations.

[3] Includes federal excise tax of $277 relating to cessions from Commercial Lines to Reinsurance Operations.

[4] Includes federal excise tax of $787 relating to cessions from Commercial Lines to Reinsurance Operations.

[5] Includes federal excise tax of $838 relating to cessions from Commercial Lines to Reinsurance Operations.

[6] Includes federal excise tax of $310 relating to cessions from Personal Lines to Reinsurance Operations.

[7] Includes federal excise tax of $957 relating to cessions from Personal Lines to Reinsurance Operations.

[8] External business only, excluding business assumed from affiliates.

[9] Comprised of Global Indemnity Reinsurance's total assets less its investment in subsidiaries.

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Municipal Bonds with and without Insurance (Detail) $ in Thousands	Sep. 30, 2015 USD ($)
Financial Statement Details [Line Items]
Ratings with insurance	$ 511
Ratings without insurance	511
AA Rating
Financial Statement Details [Line Items]
Ratings with insurance	511
BB Rating
Financial Statement Details [Line Items]
Ratings without insurance	$ 511

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Principles of Consolidation and Basis of Presentation - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015 Segment
Organization And Basis Of Presentation [Line Items]
Date of incorporation	Mar. 09, 2010
State of incorporation	Ireland
Kind of listing	A ordinary shares
Number of business segments	3

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Company's Invested Assets and Derivative Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	$ 1,689,106	$ 1,439,186
Common Shares
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	106,666	122,048
Other Invested Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	33,555	33,663
Fixed Maturities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	1,548,885	1,283,475
Fixed Maturities | U.S. Treasury and Agency Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	97,275	80,767
Fixed Maturities | Obligations of States and Political Subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	235,400	191,473
Fixed Maturities | Mortgage Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	188,403	208,759
Fixed Maturities | Commercial Mortgage-Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	160,076	133,158
Fixed Maturities | Asset-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	278,834	178,263
Fixed Maturities | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	461,294	383,416
Fixed Maturities | Foreign Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	127,603	107,639
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	1,689,106	1,439,186
Total invested liabilities	18,522	13,675
Fair Value, Measurements, Recurring | Derivative instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested liabilities	18,522	13,675
Fair Value, Measurements, Recurring | Common Shares
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	106,666	122,048
Fair Value, Measurements, Recurring | Other Invested Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	33,555	33,663
Fair Value, Measurements, Recurring | Fixed Maturities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	1,548,885	1,283,475
Fair Value, Measurements, Recurring | Fixed Maturities | U.S. Treasury and Agency Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	97,275	80,767
Fair Value, Measurements, Recurring | Fixed Maturities | Obligations of States and Political Subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	235,400	191,473
Fair Value, Measurements, Recurring | Fixed Maturities | Mortgage Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	188,403	208,759
Fair Value, Measurements, Recurring | Fixed Maturities | Commercial Mortgage-Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	160,076	133,158
Fair Value, Measurements, Recurring | Fixed Maturities | Asset-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	278,834	178,263
Fair Value, Measurements, Recurring | Fixed Maturities | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	461,294	383,416
Fair Value, Measurements, Recurring | Fixed Maturities | Foreign Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	127,603	107,639
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	198,007	196,813
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Common Shares
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	106,666	122,048
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Fixed Maturities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	91,341	74,765
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Fixed Maturities | U.S. Treasury and Agency Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	91,341	74,765
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	1,457,544	1,208,710
Total invested liabilities	18,522	13,675
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Derivative instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested liabilities	18,522	13,675
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	1,457,544	1,208,710
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities | U.S. Treasury and Agency Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	5,934	6,002
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities | Obligations of States and Political Subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	235,400	191,473
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities | Mortgage Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	188,403	208,759
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities | Commercial Mortgage-Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	160,076	133,158
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities | Asset-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	278,834	178,263
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	461,294	383,416
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed Maturities | Foreign Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	127,603	107,639
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	33,555	33,663
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Other Invested Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	$ 33,555	$ 33,663

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New Accounting Pronouncements

9 Months Ended

Sep. 30, 2015

New Accounting Pronouncements

15. New Accounting Pronouncements

In September, 2015, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance surrounding business combinations. The new guidance requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment is determined. It also requires that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. This guidance is effective for public entities for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. This guidance should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this guidance with earlier application permitted for financial statements that have not been issued. This guidance will be applicable to the Company if there is any material adjustments to amounts previously recorded during the measurement period related to the American Reliable acquisition. This guidance may also be applicable to future acquisitions. The Company plans to adopt this guidance in the first quarter of 2016.

In May, 2015, the FASB issued new accounting guidance surrounding investments in certain entities that calculate net asset value per share. The new guidance removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. It also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. This guidance is effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company plans to adopt this guidance in the first quarter of 2016 which will result in the Company’s other invested assets, that are measured utilizing net asset value, being removed from the fair value hierarchy.

In May, 2015, the FASB issued new accounting guidance surrounding short-duration contracts. The new guidance requires additional disclosure surrounding the liability for unpaid claims and claim adjustment expenses. This guidance is effective for public business entities for annual periods beginning after December 15, 2015 and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The Company plans to include these disclosures in its year ended December 31, 2016 financial statements.

In April 2015, the FASB issued new accounting guidance which requires that debt issuance costs be presented in the balance sheet as a direct reduction from the carrying amount of the recognized debt liability, consistent with the treatment of debt discounts or premiums. Amortization of debt issuance costs is to be reported as interest expense. The recognition and measurement guidance for debt issuance costs are not affected by this new guidance. For public entities, the guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this guidance in the third quarter, 2015.

The Company does not expect any of these four new accounting pronouncements to have a material impact on the Company’s consolidated statements of financial position or results of operations.

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Acquisition - Additional Information (Detail) $ in Thousands		3 Months Ended		9 Months Ended		12 Months Ended	21 Months Ended
	Jan. 01, 2015 USD ($) shares	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($) Agent	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Apr. 30, 2015 USD ($)
Business Acquisition [Line Items]
Revenue		$ 124,060	$ 75,839	$ 402,347	$ 264,752
Pre-tax (loss)		(9,727)	$ 8,128	3,283	$ 59,900
Goodwill		6,936		$ 6,936		$ 4,820	$ 6,936
Intangible assets	$ 32,000
Intangible assets arising from acquisition deductible for income tax, period				15 years
Business combination, employee related compensation cost paid, which were included in the fair value of net assets acquired				$ 1,600
Dividend limitations				The maximum amount of dividends, which can be paid by Arizona domiciled insurance companies without prior approval of the Insurance Commissioner, is subject to certain regulatory restrictions relating to statutory surplus.Specifically, an insurance company may pay dividends equal to the lesser of net income or 10% of its statutory surplus without specific approval from the Insurance Commissioner. At December 31, 2014, the maximum dividend, which may be distributed without approval in 2015, is zero. Dividends in excess of this amount are considered extraordinary.
Estimated project cost from Unrelated Party									$ 2,600
American Reliable Insurance Company
Business Acquisition [Line Items]
Revenue		63,500		$ 196,100
Pre-tax (loss)		11,200		8,500
Assets, Fair Value Adjustment		(4,806)
Goodwill		2,116		2,116			2,116	$ 2,314
Intangible assets		32,000		32,000			$ 32,000	$ 32,000
Amortization of definite lived intangible assets		4,100		23,000
Ceded written premiums		(24,047)		(52,779)
Ceded earned premiums		(18,620)		(61,499)
Rental expense under operating leases, net of sub-lease income		300		800
American Reliable Insurance Company | American Bankers Insurance Company
Business Acquisition [Line Items]
Ceded written premiums		18,700		41,700
Ceded earned premiums		13,300		50,800
American Reliable Insurance Company | Various Reinsurers Owned by Assurant, Inc.
Business Acquisition [Line Items]
Ceded written premiums		21,400		69,300
Ceded earned premiums		22,800		69,800
American Reliable Insurance Company | Earthquake Property Catastrophe Excess Of Loss
Business Acquisition [Line Items]
Reinsurance coverage for excess of risk retention per incident, effective treaty				30,000
Reinsurance coverage for risk retention per incident, effective treaty				$ 5,000
Reinsurance percentage of one full reinstatement, effective treaty				100.00%
American Reliable Insurance Company | Property Per Risk Excess Of Loss | Reinsurance Program Layer 1
Business Acquisition [Line Items]
Reinsurance coverage for excess of risk retention per incident, effective treaty				$ 1,000
Reinsurance coverage for risk retention per incident, effective treaty				1,000
Limit of liability for risks involved in one loss occurrence				2,000
American Reliable Insurance Company | Property Per Risk Excess Of Loss | Reinsurance Program Layer 2
Business Acquisition [Line Items]
Reinsurance coverage for excess of risk retention per incident, effective treaty				3,000
Reinsurance coverage for risk retention per incident, effective treaty				2,000
Limit of liability for risks involved in one loss occurrence				$ 6,000
American Reliable Insurance Company | Accounts Receivable
Business Acquisition [Line Items]
Assets, Fair Value Adjustment		$ (5,818)
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk
Business Acquisition [Line Items]
Gross premiums written, Percent						100.00%
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk | General and Specialty Agents | Arizona and New Mexico
Business Acquisition [Line Items]
Number of agents | Agent						290
American Reliable Insurance Company | Sales Revenue, Services, Net | Geographic Concentration Risk | Retail Agents | Arizona and New Mexico
Business Acquisition [Line Items]
Number of agents | Agent						332
American Reliable Insurance Company | Sales Revenue, Services, Net | Customer Concentration Risk | Top Five Agents
Business Acquisition [Line Items]
Gross premiums written, Percent						23.90%
American Reliable Insurance Company | Sales Revenue, Services, Net | Customer Concentration Risk | Agency
Business Acquisition [Line Items]
Gross premiums written, Percent						6.80%
American Bankers Insurance Company
Business Acquisition [Line Items]
Interest rate on dispute resolution agreement		5.00%		5.00%			5.00%
American Bankers Insurance Company | Accounts Receivable
Business Acquisition [Line Items]
Assets, Fair Value Adjustment		$ 6,500
American Bankers Insurance Company | Interest Receivable
Business Acquisition [Line Items]
Assets, Fair Value Adjustment		$ 700
Global Indemnity Group Inc | American Reliable Insurance Company
Business Acquisition [Line Items]
Aggregate purchase price	$ 113,700
Business acquisition date				Jan. 01, 2015
Acquired voting equity interest	100.00%
Customary insurance liabilities, obligations, and mandates	$ 283,300
Estimated purchase price	$ 99,800
Global Indemnity Group Inc | American Reliable Insurance Company | Fox Paine & Company, LLC
Business Acquisition [Line Items]
Investment bank fee as a percentage of the amount paid plus required capital to operate American Reliable on a standalone basis	3.00%
Investment advisory fee	$ 1,500
Aggregate investment advisory fee	$ 6,500
Ordinary shares of Global Indemnity issued to pay fees | shares	267,702
Global Indemnity Group Inc | Business Acquisition Cost
Business Acquisition [Line Items]
Business combination, additional costs				$ 1,800		$ 3,300	$ 5,100

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Principles of Consolidation and Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2015

Business Segments

Starting in the 1^st quarter of 2015, the Company manages its business through three business segments: Commercial Lines, managed in Bala Cynwyd, offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs; Personal Lines, managed in Scottsdale, AZ, offers specialty personal lines and agricultural coverage; and Reinsurance Operations, managed in Bermuda, provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. The Commercial Lines and Personal Lines segments comprise the Company’s U.S. Insurance Operations. See Note 14 for additional information regarding segments.

Interim Consolidated Financial statements

The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and nine months ended September 30, 2015 and 2014 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2014 Annual Report on Form 10-K.

Intercompany Balances and Transactions

The consolidated financial statements include the accounts of Global Indemnity and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Investments

The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each fixed maturity security in an unrealized loss position to assess whether the security is a candidate for credit loss. Specifically, the Company considers credit rating, market price, and issuer specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities for which the Company determines that a credit loss is likely are subjected to further analysis through discounted cash flow testing to estimate the credit loss to be recognized in earnings, if any. The specific methodologies and significant assumptions used by asset class are discussed below. Upon identification of such securities and periodically thereafter, a detailed review is performed to determine whether the decline is considered other than temporary. This review includes an analysis of several factors, including but not limited to, the credit ratings and cash flows of the securities and the magnitude and length of time that the fair value of such securities is below cost.

For fixed maturities, the factors considered in reaching the conclusion that a decline below cost is other than temporary include, among others, whether:

(1) the issuer is in financial distress;

(2) the investment is secured;

(3) a significant credit rating action occurred;

(4) scheduled interest payments were delayed or missed;

(5) changes in laws or regulations have affected an issuer or industry;

(6) the investment has an unrealized loss and was identified by the Company’s investment manager as an investment to be sold before recovery or maturity; and

(7) the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized.

According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met, the Company must recognize an other than temporary impairment with the entire unrealized loss being recorded through earnings. For debt securities in an unrealized loss position not meeting these conditions, the Company assesses whether the impairment of a security is other than temporary. If the impairment is deemed to be other than temporary, the Company must separate the other than temporary impairment into two components: the amount representing the credit loss and the amount related to all other factors, such as changes in interest rates. The credit loss represents the portion of the amortized book value in excess of the net present value of the projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. The credit loss component of the other than temporary impairment is recorded through earnings, whereas the amount relating to factors other than credit losses is recorded in other comprehensive income, net of taxes.

For equity securities, management carefully reviews all securities with unrealized losses to determine if a security should be impaired and further focuses on securities that have either:

(1) persisted with unrealized losses for more than twelve consecutive months or

(2) the value of the investment has been 20% or more below cost for six continuous months or more.

Derivatives Policy

The Company accounts for the interest rate swaps as non-hedge instruments and recognizes the fair value of the interest rate swaps in other assets or other liabilities on the consolidated balance sheets with the changes in fair value recognized as net realized investment gains (losses) in the consolidated statement of operations. The estimated fair value of the interest rate swaps, which is primarily derived from the forward interest rate curve, is based on the valuation received from a third party financial institution.

Fair Value Measurement Policy

The Company’s invested assets and derivative instruments are carried at their fair value and are categorized based upon a fair value hierarchy:

• Level 1—inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date.

• Level 2—inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly.

• Level 3—inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset.

Both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the Level 3 category. As a result, the unrealized gains and losses for invested assets within the Level 3 category presented in the tables below may include changes in fair value that are attributed to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs.

The Company’s pricing vendors provide prices for all investment categories except for investments in limited partnerships which are measured utilizing net asset values as a practical expedient. Two vendors provide prices for equity and fixed maturity securities.

The following is a description of the valuation methodologies used by the Company’s pricing vendors for investment securities carried at fair value:

• Equity prices are received from all primary and secondary exchanges.

• Corporate and agency bonds are evaluated by utilizing a multi-dimensional relational model. For bonds with early redemption options, an option adjusted spread model is utilized. Both asset classes use standard inputs and incorporate security set up, defined sector breakdown, benchmark yields, apply base spreads, yield to maturity, and adjust for corporate actions.

• Data from commercial vendors is aggregated with market information, then converted into a prepayment/spread/LIBOR curve model used for commercial mortgage obligations (“CMO”). CMOs are categorized with mortgage-backed securities in the tables listed above. For ABS’s, data derived from market information along with trustee and servicer reports is converted into spreads to interpolated swap yield curve. For both asset classes, evaluations utilize standard inputs plus new issue data, monthly payment information, and collateral performance. The evaluated pricing models incorporate discount rates, loan level information, prepayment speeds, treasury benchmarks, and LIBOR and swap curves.

• For municipals, a multi-dimensional relational model is used to evaluate securities within this asset class. The evaluated pricing models for this asset class incorporate security set-up, benchmark yields, apply base spreads, yield to worst or market convention, ratings updates, prepayment schedules and adjustments for material events notices.

• U.S. treasuries are evaluated by obtaining feeds from a number of live data sources including active market makers and inter-dealer brokers.

• For MBSs, a matrix model correlation to TBA (a forward MBS trade) or benchmarking is utilized to value a security.

Statutory Income Tax Rates

statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense.

Loss Reserves and Prior Year Development

When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates.

Earnings Per Share

Earnings per share have been computed using the weighted average number of ordinary shares and ordinary share equivalents outstanding during the period.

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Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity in the earnings of a partnership	$ 100	$ 1,448
7.75% Subordinated Notes due 2045
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Subordinated Notes percentage	7.75%	7.75%	7.75%
Subordinated Notes due date		2045	2045
Fair Value, Inputs, Level 1 | 7.75% Subordinated Notes due 2045
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Subordinated Notes percentage	7.75%	7.75%
Subordinated Notes due date		2045

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 14,165	$ 51,792
Adjustments to reconcile net income to net cash used for operating activities:
Amortization of value of business acquired	22,823
Amortization and depreciation	3,761	2,649
Amortization of debt issuance costs	16
Restricted stock and stock option expense	9,671	2,236
Deferred federal income taxes	(8,984)	1,964
Amortization of bond premium and discount, net	10,557	5,701
Net realized investment gain	7,216	(40,226)
Equity in the earnings of a partnership	(1,448)
Changes in:
Premiums receivable, net	18,971	(12,323)
Reinsurance receivables, net	5,373	19,694
Funds held by ceding insurers	661	(5,100)
Unpaid losses and loss adjustment expenses	(35,452)	(39,535)
Unearned premiums	4,608	11,169
Ceded balances payable	(11,909)	(1,027)
Other assets and liabilities, net	(13,199)	317
Contingent commissions	(2,909)	(166)
Federal income tax receivable/payable	(2,048)	(28)
Deferred acquisition costs, net	(32,160)	(3,913)
Prepaid reinsurance premiums	9,081	(265)
Net cash used for operating activities	(1,206)	(7,061)
Cash flows from investing activities:
Cash release from escrow for business acquisition	113,696
Acquisition of business, net of cash acquired	(92,336)
Proceeds from sale of fixed maturities	290,580	350,179
Proceeds from sale of equity securities	34,161	181,203
Proceeds from sale of preferred stock	1,540
Proceeds from maturity of fixed maturities	146,870	66,281
Proceeds from limited partnership distribution	4,287
Proceeds from other invested assets		12
Amounts paid in connection with derivatives	(7,072)	(13,182)
Purchases of fixed maturities	(485,153)	(525,935)
Purchases of equity securities	(32,434)	(34,033)
Purchases of other invested assets	(2,250)	(18,475)
Net cash provided by (used for) investing activities	(28,111)	6,050
Cash flows from financing activities:
Net borrowings (repayments) under margin borrowing facilities	21,114	(37,726)
Proceeds from issuance of subordinated notes	100,000
Debt issuance cost	(3,659)
Tax benefit on share-based compensation expense	58
Purchase of A ordinary shares	(333)	(139)
Net cash provided by (used for) financing activities	117,180	(37,865)
Net change in cash and cash equivalents	87,863	(38,876)
Cash and cash equivalents at beginning of period	58,823	105,492
Cash and cash equivalents at end of period	$ 146,686	$ 66,616

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Available for sale, amortized cost	$ 1,539,192	$ 1,272,948
Available for sale, at cost	99,257	99,297
Available for sale, at cost	$ 31,137	$ 33,174
Ordinary shares, par value	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	900,000,000	900,000,000
Ordinary Shares A
Ordinary shares, shares issued	16,748,528	16,331,577
Ordinary shares, shares outstanding	13,671,818	13,266,762
Treasury shares, cost	3,076,710	3,064,815
Ordinary Shares B
Ordinary shares, shares issued	12,061,370	12,061,370
Ordinary shares, shares outstanding	12,061,370	12,061,370

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Related Party Transactions

9 Months Ended

Sep. 30, 2015

Related Party Transactions

10. Related Party Transactions

Fox Paine & Company

As of September 30, 2015, Fox Paine beneficially owned shares having approximately 93% of the Company’s total outstanding voting power. Fox Paine has the right to appoint a number of the Company’s Directors equal in aggregate to the pro rata percentage of the voting shares of the Company beneficially held by Fox Paine for so long as Fox Paine holds an aggregate of 25% or more of the voting power in the Company. Fox Paine controls the election of all of the Company’s Directors due to its controlling share ownership. The Company’s Chairman is a member of Fox Paine. The Company relies on Fox Paine to provide management services and other services related to the operations of the Company.

At September 30, 2015 and December 31, 2014, Global Indemnity Reinsurance was a limited partner in Fox Paine Capital Fund, II, which is managed by Fox Paine. This investment was originally made by United National Insurance Company in June 2000 and pre-dates the September 5, 2003 acquisition by Fox Paine of Wind River Investment Corporation, which was the predecessor holding company for United National Insurance Company. The Company’s investment in this limited partnership was valued at $3.3 million and $3.4 million at September 30, 2015 and December 31, 2014, respectively. At September 30, 2015, the Company had an unfunded capital commitment of $2.4 million to the partnership. There were no distributions received from the limited partnership during the third quarter of 2015 or 2014. During the nine months ended September 30, 2015, the Company received a distribution of $0.8 million. There were no distributions received from the limited partnership during the nine months ended September 30, 2014.

The Company relies on Fox Paine to provide management services and other services related to the operations of the Company. The Company incurred management fees of $0.4 million and $0.5 million during the quarters ended September 30, 2015 and 2014, respectively, and $1.4 million and $1.5 million during the nine months ended September 30, 2015 and 2014, respectively, as part of the annual management fee paid to Fox Paine. As of September 30, 2015 and December 31, 2014, unpaid management fees, which were included in other liabilities on the consolidated balance sheets, were $2.1 million and $0.6 million, respectively.

In connection with the acquisition, the Company agreed to pay to Fox Paine an investment banking fee of 3% of the amount paid plus the additional capital required to operate American Reliable on a standalone basis and a $1.5 million investment advisory fee, which in the aggregate, totaled $6.5 million. This amount is included in corporate and other operating expenses on the Company’s Consolidated Statements of Operations during the nine months ended September 30, 2015. As payment for these fees, 267,702 A ordinary shares of Global Indemnity were issued under the Global Indemnity plc Share Incentive Plan in May, 2015. These shares will be registered but cannot be sold until the earlier of five years or a change of control. See Note 12 for additional information on the Global Indemnity plc Share Incentive Plan.

Cozen O’Connor

The Company incurred $0.2 million and $0.02 million for legal services rendered by Cozen O’Connor during the quarters ended September 30, 2015 and 2014, respectively. The Company incurred $0.6 million and $0.1 million for legal services rendered by Cozen O’Connor during the nine months ended September 30, 2015 and 2014, respectively. Stephen A. Cozen, the chairman of Cozen O’Connor, is a member of the Company’s Board of Directors.

Crystal & Company

The Company incurred brokerage fees with Crystal & Company, an insurance broker, of $0.1 million during each of the quarters ended September 30, 2015 and 2014 and $0.2 million during each of the nine months ended September 30, 2015 and 2014. James W. Crystal, the chairman and chief executive officer of Crystal & Company, is a member of the Company’s Board of Directors.

Hiscox Insurance Company (Bermuda) Ltd.

Global Indemnity Reinsurance was a participant in two reinsurance agreements with Hiscox Insurance Company (Bermuda) Ltd. (“Hiscox Bermuda”) while Steve Green, the President of Global Indemnity Reinsurance, was a member of Hiscox Bermuda’s Board of Directors. Steve Green was a member of Hiscox Bermuda’s Board of Directors until May, 2014. The Company estimated that the following earned premium and incurred losses related to these agreements have been assumed by Global Indemnity Reinsurance from Hiscox Bermuda:

	Quarters Ended September 30,
(Dollars in thousands)	2015			2014
Assumed earned premium	$	47		$	1,823
Assumed losses and loss adjustment expenses		(167	)		504
	Nine Months Ended September 30,
(Dollars in thousands)	2015			2014
Assumed earned premium	$	2,294		$	4,639
Assumed losses and loss adjustment expenses		476			1,349

Net balances due to Global Indemnity Reinsurance under this agreement are as follows:

(Dollars in thousands)	September 30, 2015			December 31, 2014
Net receivable (payable) balance	$	(61	)	$	2,897

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Segment Information - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015 Segment
Segment Reporting Information [Line Items]
Number of business segments managed	3

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Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Line Items]
Shares excluded from calculation of diluted earnings per share	512,500	12,500	512,500	12,500

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 03, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	GBLI
Entity Registrant Name	GLOBAL INDEMNITY PLC
Entity Central Index Key	0001494904
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Ordinary Shares A
Document Information [Line Items]
Entity Ordinary Shares, Shares Outstanding		13,671,818
Ordinary Shares B
Document Information [Line Items]
Entity Ordinary Shares, Shares Outstanding		12,061,370

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies

11. Commitments and Contingencies

Legal Proceedings

The Company is, from time to time, involved in various legal proceedings in the ordinary course of business. The Company maintains insurance and reinsurance coverage for such risks in amounts that it considers adequate. However, there can be no assurance that the insurance and reinsurance coverage that the Company maintains is sufficient or will be available in adequate amounts or at a reasonable cost. The Company does not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material adverse effect on its business, results of operations, cash flows, or financial condition.

There is a greater potential for disputes with reinsurers who are in runoff. Some of the Company’s reinsurers’ have operations that are in runoff, and therefore, the Company closely monitors those relationships. The Company anticipates that, similar to the rest of the insurance and reinsurance industry, it will continue to be subject to litigation and arbitration proceedings in the ordinary course of business.

Commitments

During 2014, the Company entered into a $50 million commitment to purchase an alternative investment vehicle which is comprised of European non-performing loans. As of September 30, 2015, the Company has funded $28.7 million of this commitment leaving $21.3 million as unfunded.

At September 30, 2015, the Company had an unfunded capital commitment of $2.4 million related to its investment in Fox Paine Capital Fund, II. See Note 10 for additional information on the Company’s investment in Fox Paine Capital Fund, II.

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Outstanding Debt Consisted (Parenthetical) (Detail) - 7.75% Subordinated Notes due 2045	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Subordinated Notes percentage	7.75%	7.75%
Subordinated Notes due date	2045	2045

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Reconciliation of Weighted Average Shares for Basic and Diluted Earnings Per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items]
Weighted average shares for basic earnings per share	25,463,994	25,137,531	25,452,991	25,126,684
Weighted average shares for diluted earnings per share	25,704,931	25,334,716	25,684,931	25,323,187
Restricted Stock
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items]
Non-vested restricted stock and options	138,261	89,114	128,942	88,710
Stock Options
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items]
Non-vested restricted stock and options	102,676	108,071	102,998	107,793

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Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Gross premiums written	$ 150,148	$ 67,098	$ 459,532	$ 227,200
Net premiums written	122,497	63,262	394,606	212,495
Net premiums earned	124,707	68,028	380,921	201,589
Net investment income	8,852	6,527	26,234	22,488
Net realized investment gains (losses):
Other than temporary impairment losses on investments	(4,641)	(6)	(6,879)	(68)
Other net realized investment gains (losses)	(6,137)	1,164	(337)	40,294
Total net realized investment gains (losses)	(10,778)	1,158	(7,216)	40,226
Other income	1,279	126	2,408	449
Total revenues	124,060	75,839	402,347	264,752
Losses and Expenses:
Net losses and loss adjustment expenses	77,691	36,654	226,870	113,496
Acquisition costs and other underwriting expenses	50,934	27,458	150,118	81,114
Corporate and other operating expenses	3,567	3,481	19,441	9,614
Interest expense	1,595	118	2,635	628
Income (loss) before income taxes	(9,727)	8,128	3,283	59,900
Income tax expense (benefit)	(5,981)	(1,633)	(10,882)	8,108
Net income (loss)	$ (3,746)	$ 9,761	$ 14,165	$ 51,792
Net income (loss)
Basic	$ (0.15)	$ 0.39	$ 0.56	$ 2.06
Diluted	$ (0.15)	$ 0.39	$ 0.55	$ 2.05
Weighted-average number of shares outstanding
Basic	25,463,994	25,137,531	25,452,991	25,126,684
Diluted	25,704,931	25,334,716	25,684,931	25,323,187

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Fair Value Measurements

9 Months Ended

Sep. 30, 2015

Fair Value Measurements

5. Fair Value Measurements

The accounting standards related to fair value measurements define fair value, establish a framework for measuring fair value, outline a fair value hierarchy based on inputs used to measure fair value, and enhance disclosure requirements for fair value measurements. These standards do not change existing guidance as to whether or not an instrument is carried at fair value. The Company has determined that its fair value measurements are in accordance with the requirements of these accounting standards.

The Company’s invested assets and derivative instruments are carried at their fair value and are categorized based upon a fair value hierarchy:

• Level 1—inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date.

• Level 2—inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly.

• Level 3—inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset.

Both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the Level 3 category. As a result, the unrealized gains and losses for invested assets within the Level 3 category presented in the tables below may include changes in fair value that are attributed to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs.

The following table presents information about the Company’s invested assets and derivative instruments measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.

As of September 30, 2015	Fair Value Measurements
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasury and agency obligations	$	91,341	$	5,934	$	—	$	97,275
Obligations of states and political subdivisions		—		235,400		—		235,400
Mortgage-backed securities		—		188,403		—		188,403
Commercial mortgage-backed securities		—		160,076		—		160,076
Asset-backed securities		—		278,834		—		278,834
Corporate bonds		—		461,294		—		461,294
Foreign corporate bonds		—		127,603		—		127,603
Total fixed maturities		91,341		1,457,544		—		1,548,885
Common stock		106,666		—		—		106,666
Other invested assets		—		—		33,555		33,555
Total assets measured at fair value	$	198,007	$	1,457,544	$	33,555	$	1,689,106
Liabilities:
Derivative instruments	$	—	$	18,522	$	—	$	18,522
Total liabilities measured at fair value	$	—	$	18,522	$	—	$	18,522

As of December 31, 2014	Fair Value Measurements
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasury and agency obligations	$	74,765	$	6,002	$	—	$	80,767
Obligations of states and political subdivisions		—		191,473		—		191,473
Mortgage-backed securities		—		208,759		—		208,759
Commercial mortgage-backed securities		—		133,158		—		133,158
Asset-backed securities		—		178,263		—		178,263
Corporate bonds		—		383,416		—		383,416
Foreign corporate bonds		—		107,639		—		107,639
Total fixed maturities		74,765		1,208,710		—		1,283,475
Common stock		122,048		—		—		122,048
Other invested assets		—		—		33,663		33,663
Total assets measured at fair value	$	196,813	$	1,208,710	$	33,663	$	1,439,186
Liabilities:
Derivative instruments	$	—	$	13,675	$	—	$	13,675
Total liabilities measured at fair value	$	—	$	13,675	$	—	$	13,675

The securities classified as Level 1 in the above table consist of U.S. Treasuries and equity securities actively traded on an exchange.

The securities classified as Level 2 in the above table consist primarily of fixed maturity securities and derivative instruments. Based on the typical trading volumes and the lack of quoted market prices for fixed maturities, security prices are derived through recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information. If there are no recent reported trades, matrix or model processes are used to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Included in the pricing of asset-backed securities, collateralized mortgage obligations, and mortgage-backed securities are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment speeds previously experienced at the interest rate levels projected for the underlying collateral. The estimated fair value of the interest rate swaps is obtained from a third party financial institution who utilizes observable inputs such as the forward interest rate curve.

For the Company’s material debt arrangements, the current fair value of the Company’s debt was as follows:

(Dollars in thousands)	Carrying Value		Fair Value
Margin Borrowing Facilities	$	195,787	$	195,787
7.75% Subordinated Notes due 2045 (1)		96,357		90,117
Total	$	292,144	$	285,904

(1) As of September 30, 2015, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.6 million.

The fair value of the margin borrowing facilities approximates its carrying value due to the facilities being due on demand. The 7.75% subordinated notes due 2045 are publicly traded instruments and are classified as Level 1 in the fair value hierarchy.

There were no transfers between Level 1 and Level 2 during the quarters and nine months ended September 30, 2015 or 2014.

The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the quarters and nine months ended September 30, 2015 and 2014:

	Quarters Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands)	2015		2014			2015			2014
Beginning balance	$	31,176	$	15,034		$	33,663		$	3,489
Total gains (losses) (realized / unrealized):
Included in accumulated other comprehensive income (loss)		23		(404	)		481			(834	)
Investment Income:
Equity in Limited Partnership		106		—			1,448			—
Purchases		2,250		6,500			2,250			18,475
Distributions		—		(12	)		(4,287	)		(12	)
Ending balance	$	33,555	$	21,118		$	33,555		$	21,118

The investments classified as Level 3 in the above table relate to investments in limited partnerships. The Company does not have access to daily valuations; therefore, the estimated fair values of the limited partnerships are measured utilizing net asset value, typically on a quarter lag, as a practical expedient for the limited partnerships.

The Company uses the equity method to account for an investment in a limited partnership where its ownership interest exceeds 3%. The equity method of accounting for an investment in a limited partnership requires changes in fair market value to be reflected in the income statement. The Company records the changes in fair market value for investments in limited partnerships accounted for under the equity method to investment income. The change in fair market value included in investment income for this limited partnership was $0.1 million during the quarter ended September 30, 2015 and $1.4 million during the year ended September 30, 2015.

Fair Value of Alternative Investments

Included in “Other invested assets” in the fair value hierarchy at September 30, 2015 and December 31, 2014 are limited liability partnerships measured at fair value. The following table provides the fair value and future funding commitments related to these investments at September 30, 2015 and December 31, 2014.

	September 30, 2015				December 31, 2014
(Dollars in thousands)	Fair Value		Future Funding Commitment		Fair Value		Future Funding Commitment
Equity Fund, LP (1)	$	3,348	$	2,391	$	3,401	$	2,436
Real Estate Fund, LP (2)		—		—		—		—
European Non-Performing Loan Fund, LP (3)		30,207		21,314		30,262		20,064
Total	$	33,555	$	23,705	$	33,663	$	22,500

(1) This limited partnership invests in companies from various business sectors whereby the partnership has acquired control of the operating business as a lead or organizing investor. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company anticipates its interest in this partnership to be redeemed during the 4^th quarter of 2015.

(2) This limited partnership invests in real estate assets through a combination of direct or indirect investments in partnerships, limited liability companies, mortgage loans, and lines of credit. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company continues to hold an investment in this limited partnership and has written the fair value down to zero.

(3) This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. Based on the terms of the partnership agreement, the Company anticipates its interest in this partnership to be redeemed in 2020.

Pricing

The Company’s pricing vendors provide prices for all investment categories except for investments in limited partnerships which are measured utilizing net asset values as a practical expedient. Two vendors provide prices for equity and fixed maturity securities.

The following is a description of the valuation methodologies used by the Company’s pricing vendors for investment securities carried at fair value:

• Equity prices are received from all primary and secondary exchanges.

• Corporate and agency bonds are evaluated by utilizing a multi-dimensional relational model. For bonds with early redemption options, an option adjusted spread model is utilized. Both asset classes use standard inputs and incorporate security set up, defined sector breakdown, benchmark yields, apply base spreads, yield to maturity, and adjust for corporate actions.

• Data from commercial vendors is aggregated with market information, then converted into a prepayment/spread/LIBOR curve model used for commercial mortgage obligations (“CMO”). CMOs are categorized with mortgage-backed securities in the tables listed above. For ABS’s, data derived from market information along with trustee and servicer reports is converted into spreads to interpolated swap yield curve. For both asset classes, evaluations utilize standard inputs plus new issue data, monthly payment information, and collateral performance. The evaluated pricing models incorporate discount rates, loan level information, prepayment speeds, treasury benchmarks, and LIBOR and swap curves.

• For municipals, a multi-dimensional relational model is used to evaluate securities within this asset class. The evaluated pricing models for this asset class incorporate security set-up, benchmark yields, apply base spreads, yield to worst or market convention, ratings updates, prepayment schedules and adjustments for material events notices.

• U.S. treasuries are evaluated by obtaining feeds from a number of live data sources including active market makers and inter-dealer brokers.

• For MBSs, a matrix model correlation to TBA (a forward MBS trade) or benchmarking is utilized to value a security.

The Company performs certain procedures to validate whether the pricing information received from the pricing vendor is reasonable, to ensure that the fair value determination is consistent with accounting guidance, and to ensure that its assets are properly classified in the fair value hierarchy. The Company’s procedures include, but are not limited to:

• Reviewing periodic reports provided by the Investment Manager that provide information regarding rating changes and securities placed on watch. This procedure allows the Company to understand why a particular security’s market value may have changed.

• Understanding and periodically evaluating the various pricing methods and procedures used by the Company’s pricing vendor to ensure that investments are properly classified within the fair value hierarchy.

• On a quarterly basis, the Company corroborates investment security prices received from its pricing vendor by obtaining pricing from a second pricing vendor for a sample of securities.

During the quarters and nine months ended September 30, 2015 and 2014, the Company has not adjusted quotes or prices obtained from the pricing vendor.

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Derivative Instruments

9 Months Ended

Sep. 30, 2015

Derivative Instruments

4. Derivative Instruments

Interest rate swaps are used by the Company primarily to reduce risks from changes in interest rates. Under the terms of the interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount.

The Company accounts for the interest rate swaps as non-hedge instruments and recognizes the fair value of the interest rate swaps in other assets or other liabilities on the consolidated balance sheets with the changes in fair value recognized as net realized investment gains (losses) in the consolidated statement of operations. The estimated fair value of the interest rate swaps, which is primarily derived from the forward interest rate curve, is based on the valuation received from a third party financial institution.

The following table summarizes information on the location and the gross amount of the derivatives’ fair value on the consolidated balance sheets as of September 30, 2015 and December 31, 2014:

(Dollars in thousands)			September 30, 2015					December 31, 2014
Derivatives Not Designated as Hedging Instruments under ASC 815	Balance Sheet Location		Notional Amount		Fair Value			Notional Amount		Fair Value
Interest rate swap agreements		Other liabilities	$	200,000	$	(18,522	)	$	200,000	$	(13,675	)

The following table summarizes the net gains and losses included in the consolidated statement of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the quarters and nine months ended September 30, 2015 and 2014:

		Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	Statement of Operations Line	2015			2014			2015			2014
Interest rate swap agreements	Net realized investment gain(losses)	$	(8,071	)	$	(1,192	)	$	(8,896	)	$	(13,552	)

As of September 30, 2015, the Company is due receivables of $4.8 million for collateral posted and $18.8 million for margin calls made in connection with the interest rate swaps. These amounts are included in other assets on the consolidated balance sheets.

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Subsequent Events

9 Months Ended

Sep. 30, 2015

Subsequent Events

16. Subsequent Events

On October 29, 2015, Global Indemnity entered into a redemption agreement with certain affiliates of Fox Paine & Company, LLC and agreed to redeem 8,260,870 of its ordinary shares for $190 million in the aggregate from affiliates of Fox Paine & Company, LLC. Global Indemnity also acquired rights, expiring year end 2019, to redeem an additional 3,376,561 Ordinary Shares for $77,660,903, which amount is subject to an annual 3% increase. The Company is in discussions with affiliates of Fox Paine to acquire rights to redeem a further 1,146,716 ordinary shares on the same terms as the 3,376,561 share redemption rights. After giving effect to the share redemptions and regardless of whether or not the additional redemption rights are exercised, affiliates of Fox Paine will continue to have the ability to cast a majority of votes on matters submitted to Global Indemnity shareholders for approval.

Had the redemption occurred on or prior to September 30, 2015, outstanding shares would have been 17,472,318 as of September 30, 2015.

In connection with the redemption, the Company sold $279.9 million of securities from its consolidated investment portfolio during October, 2015, which resulted in a realized gain of $1.6 million. $102.0 million was used to pay down margin debt, with the remainder being used to fund a portion of the redemption transaction.

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Share-Based Compensation Plans

9 Months Ended

Sep. 30, 2015

Share-Based Compensation Plans

12. Share-Based Compensation Plans

Options

No stock options were awarded during the quarters ended September 30, 2015 and 2014. No unvested stock options were forfeited during the quarter ended September 30, 2015. Unvested stock options of 75,000 were forfeited during the quarter ended September 30, 2014.

During the nine months ended September 30, 2015, the company awarded 200,000 time based options with a strike price of $28.37 per share which vest one third on each of December 31, 2015, December 31, 2016, and December 31, 2017. During the nine months ended September 30, 2014, the company awarded 25,000 time based options with a strike price of $24.00 per share which vest in February, 2017. Unvested stock options of 75,000, which include the 25,000 shares issued during the nine months ended September 30, 2014, were forfeited during the nine months ended September 30, 2014.

Restricted Shares

No restricted shares were issued to employees during the quarter ended September 30, 2015 and 2014.

During the nine months ended September 30, 2015, the Company issued 138,507 A ordinary shares, with a weighted average grant date value of $28.37 per share, to key employees under the Plan.

Of the shares issued during the nine months ended September 30, 2015, 10,574 were issued to the Company’s Chief Executive Officer and vest 33 1/3 on each subsequent anniversary date of the grant for a period of three years subject to an accident year true-up of bonus year underwriting results as of the third anniversary of the grant and an additional 44,058 were issued to the Company’s Chief Executive Officer and other key employees which vest 100% on January 1, 2018. The remaining 83,875 shares were issued to key employees and will vest as follows:

• 16.5%, 16.5%, and 17.0% of the granted stock vest on the first, second, and third anniversary of the grant, respectively.

• 50% of granted stock vests 100% on the anniversary of the third year subject to accident year true-up of bonus year underwriting results and are subject to Board approval.

During the nine months ended September 30, 2014, the Company issued 95,694 A ordinary shares, with a weighted average grant date value of $25.37 per share, to key employees under the 2014 Plan. Of the shares issued in 2014, 11,857 were granted to the Company’s Chief Executive Officer and vest 33 1/3 on each subsequent anniversary date of the grant for a period of three years subject to an accident year true-up of bonus year underwriting results as of the third anniversary of the grant. 5,671 were issued to a key employee and vest 33 1/3% on each subsequent anniversary date of the award for a period of three years. The remaining 78,166 shares were issued to key employees and will vest as follows:

• 16.5%, 16.5%, and 17.0% of the granted stock vest on the first, second, and third anniversary of the grant, respectively.

• 50% of granted stock vests 100% on the anniversary of the third year subject to accident year true-up of bonus year underwriting results and are subject to Board approval.

During the quarters ended September 30, 2015 and 2014, the Company issued 9,392 and 9,498 A ordinary shares, respectively, at a weighted average grant date value of $26.17 and $25.23 per share, respectively, to non-employee directors of the Company under the Plan. During the nine months ended September 30, 2015 and 2014, the Company issued 27,437 and 27,676 A ordinary shares, respectively, at a weighted average grant date value of $27.31 and $25.84 per share, respectively, to non-employee directors of the Company under the Plan. All of the shares issued to non-employee directors of the Company in 2015 and 2014 were fully vested but subject to certain restrictions. An additional 18,838 A ordinary shares were granted to non-employee directors on June 11, 2014. These shares were issued to non-employee directors prior to January 1, 2014 on the condition that the shareholders approve the Company’s revised share incentive plan at the Company’s 2014 annual shareholder meeting which occurred on June 11, 2014.

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Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jan. 01, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Distribution received from the limited partnership				$ 4,287
Fox Paine & Company, LLC
Related Party Transaction [Line Items]
Company's total outstanding voting power		93.00%		93.00%
Minimum voting power required to nominate Directors		25.00%		25.00%
Management fees		$ 400	$ 500	$ 1,400	$ 1,500
Unpaid management fees		2,100		2,100		$ 600
Fox Paine & Company, LLC | Global Indemnity Group Inc | American Reliable Insurance Company
Related Party Transaction [Line Items]
Investment bank fee as a percentage of the amount paid plus required capital to operate American Reliable on a standalone basis	3.00%
Investment advisory fee	$ 1,500
Aggregate investment advisory fee	$ 6,500
Ordinary shares of Global Indemnity issued to pay fees	267,702
Fox Paine Capital Fund II Limited Partner | Global Indemnity Reinsurance
Related Party Transaction [Line Items]
Company's investment in limited partnership		3,300		3,300		$ 3,400
Unfunded capital commitment		2,400		2,400
Distribution received from the limited partnership		0	0	800	0
Cozen O'Connor
Related Party Transaction [Line Items]
Cost incurred for legal services rendered		200	20	600	100
Crystal & Company
Related Party Transaction [Line Items]
Brokerage fee incurred		$ 100	$ 100	$ 200	$ 200

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Debt

9 Months Ended

Sep. 30, 2015

Debt

8. Debt

The Company’s outstanding debt consisted of the following at September 30, 2015 and December 31, 2014:

(Dollars in thousands)	September 30, 2015		December 31, 2014
Margin Borrowing Facilities	$	195,787	$	174,673
7.75% Subordinated Notes due 2045		96,357		—
Total	$	292,144	$	174,673

Margin Borrowing Facilities

The amount outstanding on the Company’s margin borrowing facilities was $195.8 million and $174.7 million as of September 30, 2015 and December 31, 2014, respectively. The borrowing rate for each facility is tied to LIBOR and is currently approximately 1% as of September 30, 2015. These facilities are due on demand. The borrowings are subject to maintenance margin, which is a minimum account balance that must be maintained. A decline in market conditions could require an additional deposit of collateral. As of September 30, 2015, approximately $248.5 million in securities were deposited as collateral to support the borrowing.

The Company recorded interest expense of approximately $0.5 million and $0.1 million during the quarter ended September 30, 2015 and 2014, respectively, and $1.6 million and $0.5 million during the nine months ended September 30, 2015 and 2014, respectively, related to the Margin Borrowing Facilities.

7.75% Subordinated Notes due 2045

On August 12, 2015, the Company issued $100.0 million in aggregate principal amount of its 2045 Subordinated Notes through an underwritten public offering.

The notes bear interest at an annual rate equal to 7.75%, payable quarterly in arrears on February 15, May 15, August 15, and November 15 of each year, commencing November 15, 2015. The notes mature on August 15, 2045. The Company has the right to redeem the notes in $25 increments, in whole or in part, on and after August 15, 2020, or on any interest payments date thereafter, at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption.

The notes are subordinated unsecured obligations and rank (i) senior to the Company’s existing and future capital stock, (ii) senior in right of payment to future junior subordinated debt, (iii) equally in right of payment with any unsecured, subordinated debt that the Company incurs in the future that ranks equally with the notes, and (iv) subordinate in right of payment to any of the Company’s existing and future senior debt. In addition, the notes are structurally subordinated to all existing and future indebtedness, liabilities and other obligations of the Company’s subsidiaries.

The Company incurred $3.6 million in deferred issuance costs associated with the notes, which is being amortized over the term of the notes. Interest expense, including amortization of deferred issuance costs, recognized on the notes was $1.1 million during both the quarter and nine months ended September 30, 2015.

The following tables represent the amounts recorded for the margin borrowing facilities and 7.75% subordinated notes as of September 30, 2015 and December 31, 2014:

	September 30, 2015
	Outstanding Principal		Unamortized Debt Issuance Costs			Net Carrying Amount
Margin Borrowing Facilities	$	195,787	$	—		$	195,787
7.75% Subordinated Notes due 2045		100,000		(3,643	)		96,357
	$	295,787	$	(3,643	)	$	292,144

	December 31, 2014
	Outstanding Principal		Unamortized Debt Issuance Costs		Net Carrying Amount
Margin Borrowing Facilities	$	174,673	$	—	$	174,673
7.75% Subordinated Notes due 2045		—		—		—
	$	174,673	$	—	$	174,673

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Summary of Insurance Enhanced Municipal Bonds Backed by Financial Guarantors (Detail) $ in Thousands	Sep. 30, 2015 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	$ 19,005
Ambac Financial Group
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	1,686
Assured Guaranty Corporation
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	3,661
Municipal Bond Insurance Association
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	4,920
Gov't National Housing Association
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	553
Financial Guarantors
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	10,820
Other Credit Enhanced Municipal Bonds
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	8,185
Pre-Refunded Securities
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	8,321
Pre-Refunded Securities | Ambac Financial Group
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	136
Pre-Refunded Securities | Financial Guarantors
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	136
Pre-Refunded Securities | Other Credit Enhanced Municipal Bonds
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	8,185
Government Guaranteed Securities
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	553
Government Guaranteed Securities | Gov't National Housing Association
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	553
Government Guaranteed Securities | Financial Guarantors
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	553
Exposure Net Of Pre-refunded & Government Guaranteed Securities
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	10,131
Exposure Net Of Pre-refunded & Government Guaranteed Securities | Ambac Financial Group
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	1,550
Exposure Net Of Pre-refunded & Government Guaranteed Securities | Assured Guaranty Corporation
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	3,661
Exposure Net Of Pre-refunded & Government Guaranteed Securities | Municipal Bond Insurance Association
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	4,920
Exposure Net Of Pre-refunded & Government Guaranteed Securities | Financial Guarantors
Schedule of Available-for-sale Securities [Line Items]
Investments in insurance enhanced municipal bonds	$ 10,131

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Income Taxes

9 Months Ended

Sep. 30, 2015

Income Taxes

6. Income Taxes

The statutory income tax rates of the countries where the Company does business are 35% in the United States, 0% in Bermuda, 0% in the Cayman Islands, 0% in Gibraltar, 29.22% in the Duchy of Luxembourg, and 25% on non-trading income, 33% on capital gains and 12.5% on trading income in the Republic of Ireland. The statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense. Generally, during interim periods, the Company will divide total estimated annual income tax expense by total estimated annual pre-tax income to determine the expected annual income tax rate used to compute the income tax provision. The expected annual income tax rate is then applied against interim pre-tax income, excluding net realized gains and losses and limited partnership distributions, and that amount is then added to the actual income taxes on net realized gains and losses, discrete items and limited partnership distributions. However, when there is significant volatility in the expected effective tax rate, the Company records its actual income tax provision in lieu of the estimated effective income tax rate. In 2015, the Company recorded its income tax provision using a discrete period computation because a reliable estimate of an effective tax rate could not be made.

The Company’s income before income taxes from its non-U.S. subsidiaries and U.S. subsidiaries, including the results of the quota share and stop-loss agreements between Global Indemnity Reinsurance and the Insurance Operations, for the quarters and nine months ended September 30, 2015 and 2014 were as follows:

Quarter Ended September 30, 2015: (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries			Eliminations			Total
Revenues:
Gross premiums written	$	67,543		$	140,268		$	(57,663	)	$	150,148
Net premiums written	$	67,534		$	54,963		$	—		$	122,497
Net premiums earned	$	70,532		$	54,175		$	—		$	124,707
Net investment income		10,644			4,783			(6,575	)		8,852
Net realized investment losses		(1,256	)		(9,522	)		—			(10,778	)
Other income		(11	)		1,290			—			1,279
Total revenues		79,909			50,726			(6,575	)		124,060
Losses and Expenses:
Net losses and loss adjustment expenses		39,849			37,842			—			77,691
Acquisition costs and other underwriting expenses		30,504			20,430			—			50,934
Corporate and other operating expenses		1,648			1,919			—			3,567
Interest expense		1,501			6,669			(6,575	)		1,595
Income (loss) before income taxes	$	6,407		$	(16,134	)	$	—		$	(9,727	)

Quarter Ended September 30, 2014: (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries			Eliminations			Total
Revenues:
Gross premiums written	$	38,387		$	56,491		$	(27,780	)	$	67,098
Net premiums written	$	38,366		$	24,896		$	—		$	63,262
Net premiums earned	$	43,238		$	24,790		$	—		$	68,028
Net investment income		7,713			3,655			(4,841	)		6,527
Net realized investment gains (losses)		(10	)		1,168			—			1,158
Other income (loss)		(38	)		164			—			126
Total revenues		50,903			29,777			(4,841	)		75,839
Losses and Expenses:
Net losses and loss adjustment expenses		18,939			17,715			—			36,654
Acquisition costs and other underwriting expenses		17,762			9,696			—			27,458
Corporate and other operating expenses		1,156			2,325			—			3,481
Interest expense		193			4,766			(4,841	)		118
Income before income taxes	$	12,853		$	(4,725	)	$	—		$	8,128

Nine Months Ended September 30, 2015: (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries			Eliminations			Total
Revenues:
Gross premiums written	$	289,940		$	411,310		$	(241,718	)	$	459,532
Net premiums written	$	289,892		$	104,714		$	—		$	394,606
Net premiums earned	$	214,667		$	166,254		$	—		$	380,921
Net investment income		32,146			13,594			(19,506	)		26,234
Net realized investment losses		(1,643	)		(5,573	)		—			(7,216	)
Other income (loss)		(77	)		2,485			—			2,408
Total revenues		245,093			176,760			(19,506	)		402,347
Losses and Expenses:
Net losses and loss adjustment expenses		115,654			111,216			—			226,870
Acquisition costs and other underwriting expenses		92,368			57,750			—			150,118
Corporate and other operating expenses		3,395			16,046			—			19,441
Interest expense		2,325			19,816			(19,506	)		2,635
Income (loss) before income taxes	$	31,351		$	(28,068	)	$	—		$	3,283

Nine Months Ended September 30, 2014: (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries		Eliminations			Total
Revenues:
Gross premiums written	$	139,714		$	170,038	$	(82,552	)	$	227,200
Net premiums written	$	138,677		$	73,818	$	—		$	212,495
Net premiums earned	$	126,551		$	75,038	$	—		$	201,589
Net investment income		22,947			13,980		(14,439	)		22,488
Net realized investment gains		1,017			39,209		—			40,226
Other income (loss)		(41	)		490		—			449
Total revenues		150,474			128,717		(14,439	)		264,752
Losses and Expenses:
Net losses and loss adjustment expenses		51,818			61,678		—			113,496
Acquisition costs and other underwriting expenses		52,637			28,477		—			81,114
Corporate and other operating expenses		4,034			5,580		—			9,614
Interest expense		647			14,420		(14,439	)		628
Income before income taxes	$	41,338		$	18,562	$	—		$	59,900

The following table summarizes the components of income tax expense (benefit):

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Current income tax expense:
Foreign	$	67		$	39		$	228		$	164
U.S. Federal		(579	)		(1,571	)		(2,126	)		5,980
Total current income tax expense (benefit)		(512	)		(1,532	)		(1,898	)		6,144
Deferred income tax expense (benefit):
U.S. Federal		(5,469	)		(101	)		(8,984	)		1,964
Total deferred income tax expense (benefit)		(5,469	)		(101	)		(8,984	)		1,964
Total income tax expense (benefit)	$	(5,981	)	$	(1,633	)	$	(10,882	)	$	8,108

The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate:

	Quarters Ended September 30,
	2015						2014
(Dollars in thousands)	Amount			% of Pre- Tax Income			Amount			% of Pre- Tax Income
Expected tax provision at weighted average rate	$	(5,580	)		(57.4	%)	$	(1,614	)		(19.9	%)
Adjustments:
Tax exempt interest		(107	)		(1.1	)		(120	)		(1.5	)
Dividend exclusion		(175	)		(1.8	)		(229	)		(2.8	)
Effective tax rate adjustment		—			0.0			288			3.5
Other		(119	)		(1.2	)		42			0.6
Actual tax on continuing operations	$	(5,981	)		(61.5	%)	$	(1,633	)		(20.1	%)

The effective income tax benefit rate for the quarter ended September 30, 2015 was 61.5%, compared to an effective income tax benefit rate of 20.1%, for the quarter ended September 30, 2014. The increase in the effective tax benefit rate is primarily due to capital losses in the quarter ended September 30, 2015. Taxes were computed using a discrete period computation because a reliable estimate of an effective tax rate could not be made.

	Nine Months Ended September 30,
	2015						2014
(Dollars in thousands)	Amount			% of Pre- Tax Income			Amount			% of Pre- Tax Income
Expected tax provision at weighted average rate	$	(9,595	)		(292.3	%)	$	6,649			11.1	%
Adjustments:
Tax exempt interest		(326	)		(9.9	)		(490	)		(0.8	)
Dividend exclusion		(588	)		(17.9	)		(1,186	)		(2.0	)
Effective tax rate adjustment		—			0.0			2,600			4.3
Other		(373	)		(11.4	)		535			0.9
Actual tax on continuing operations	$	(10,882	)		(331.5	%)	$	8,108			13.5	%

The effective income tax benefit rate for the nine months ended September 30, 2015 was 331.5%, compared to an effective income tax expense rate of 13.5% for the nine months ended September 30, 2014. The decrease in the effective tax rate is primarily due to expenses related to the acquisition of American Reliable Insurance Company in 2015 and large capital gains in 2014. Taxes were computed using a discrete period computation because a reliable estimate of an effective tax rate could not be made.

The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at September 30, 2015 and December 31, 2014 are presented below:

(Dollars in thousands)	September 30, 2015		December 31, 2014
Deferred tax assets:
Discounted unpaid losses and loss adjustment expenses	$	8,739	$	7,492
Unearned premiums		8,117		3,409
Alternative minimum tax credit carryover		10,587		10,473
Net operating loss carryforward		6,264		—
Partnership K1 basis differences		245		145
Capital gain on derivative instruments		6,483		4,786
Investment impairments		2,709		379
Stock options		2,578		2,048
Deferred acquisition costs		149		187
Stat-to-GAAP reinsurance reserve		1,364		1,424
Intercompany transfers		1,738		1,919
Depreciation and amortization		93		—
Other		4,115		3,050
Total deferred tax assets		53,181		35,312
Deferred tax liabilities:
PGAAP adjustment for American Reliable		6,095		—
Intangible assets		4,615		3,220
Unrealized gain on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income		4,827		10,263
Investment basis differences		1,066		692
Depreciation and amortization		—		16
Other		769		871
Total deferred tax liabilities		17,372		15,062
Total net deferred tax assets	$	35,809	$	20,250

Management believes it is more likely than not that the deferred tax assets will be fully utilized in future years. As a result, the Company has not recorded a valuation allowance at September 30, 2015 and December 31, 2014.

The Company has an alternative minimum tax credit carry forward of $10.6 million and $10.5 million as of September 30, 2015 and December 31, 2014, respectively, which can be carried forward indefinitely. The company has a net operating loss (“NOL”) carryforward of $6.3 million as of September 30, 2015. The company has no NOL carryforward as of December 31, 2014.

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Liability for Unpaid Losses and Loss Adjustment Expenses

9 Months Ended

Sep. 30, 2015

Liability for Unpaid Losses and Loss Adjustment Expenses

7. Liability for Unpaid Losses and Loss Adjustment Expenses

Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:

	Quarters Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands)	2015			2014		2015			2014
Balance at beginning of period	$	769,299		$	754,595	$	675,472		$	779,466
Less: Ceded reinsurance receivables		138,497			178,998		123,201			192,491
Net balance at beginning of period		630,802			575,597		552,271			586,975
Purchased reserves, gross		1,119			—		89,489			—
Less: Purchased reserves ceded		(1,119	)		—		(12,800	)		—
Purchased reserves, net		—			—		76,689			—
Incurred losses and loss adjustment expenses related to:
Current year		86,203			36,501		244,041			119,464
Prior years		(8,512	)		153		(17,171	)		(5,969	)
Total incurred losses and loss adjustment expenses		77,691			36,654		226,870			113,495
Paid losses and loss adjustment expenses related to:
Current year		53,512			15,480		113,573			39,472
Prior years		56,385			28,704		143,661			92,931
Total paid losses and loss adjustment expenses		109,897			44,184		257,234			132,403
Net balance at end of period		598,596			568,067		598,596			568,067
Plus: Ceded reinsurance receivables		130,913			171,864		130,913			171,864
Balance at end of period	$	729,509		$	739,931	$	729,509		$	739,931

When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates.

In the third quarter of 2015, the Company decreased its prior accident year loss reserves by $8.5 million, which consisted of a $7.3 million decrease related to Commercial Lines and a $1.2 million decrease related to Reinsurance Operations.

The $7.3 million decrease related to Commercial Lines primarily consisted of the following:

• Professional: A $3.5 million decrease in aggregate primarily related to better than anticipated loss emergence in accident years 2006 through 2012.

• General Liability: A $3.8 million decrease in aggregate primarily related to accident years 1999 through 2013 primarily due to better than anticipated frequency and severity in construction defect.

The $1.2 million decrease in aggregate related to Reinsurance Operations was primarily due to improved results reported by the Company’s cedants on property catastrophe contracts for accident years 2009 to 2013.

In the third quarter of 2014, the Company increased its prior accident year loss reserves by $0.2 million, which consisted of a $0.02 million increase related to Commercial Lines and a $0.1 million increase related to Reinsurance Operations.

The $0.02 million increase related to Commercial Lines primarily consisted of the following:

• General Liability: A $5.4 million increase primarily due to higher than anticipated loss emergence in recent accident years.

• Professional: A $6.4 million reduction is primarily due to lower than expected severity from accident years 2007 through 2011.

• Property: A $0.5 million increase primarily due to increased severity in accident years 2011 through 2013.

• Asbestos: $0.2 million increase primarily related to accident years prior to 1990 due to recent development on several claims.

• Other: A $0.3 million increase primarily due to accident years 2011 through 2013.

The $0.1 million increase related to Reinsurance Operations primarily consisted of the following:

• Property: A $3.4 million reduction is due to less catastrophe losses than anticipated primarily from accident year 2013.

• Commercial Auto: A $0.5 million increase due to increased severity primarily from accident years 2009 and 2010.

• Marine: A $3.0 million increase is primarily related to increased severity on accident years 2011 and 2012. These treaties are in runoff. Several claims have recently settled for amounts higher than expected.

In the first nine months of 2015, the Company decreased its prior accident year loss reserves by $17.2 million, which consisted of a $12.9 million decrease related to Commercial Lines and a $4.3 million decrease related to Reinsurance Operations.

The $12.9 million decrease related to Commercial Lines primarily consisted of the following:

• Property: A $0.8 million decrease in aggregate primary related to better than anticipated loss emergence in the 2011 through 2014 accident years.

• Umbrella: $0.3 million decrease primarily related to accident years 2003 through 2005 as a result of better than anticipated loss emergence.

• Professional: $6.4 million decrease in aggregate primarily related to better than anticipated frequency in accident years 2006 through 2012.

• General Liability: A $5.7 million decrease in aggregate primarily related to accident years prior to 2013 due to better than anticipated frequency and severity in construction defect.

The $4.3 million decrease in aggregate related to Reinsurance Operations was primarily due to improved results reported by the Company’s cedants on property contracts for accident years 2009 through 2014.

In the first nine months of 2014, the Company reduced its prior accident year loss reserves by $6.0 million, which consisted of a $5.0 million decrease related to Commercial Lines and a $1.0 million decrease related to Reinsurance Operations.

The $5.0 million decrease related to Commercial Lines primarily consisted of the following:

• Property: A $0.7 million increase primarily due to increased severity in accident years 2007, 2012, and 2013.

• General Liability: A $5.3 million increase primarily due to higher than anticipated loss emergence in recent accident years.

• Professional: A $18.1 million reduction due to lower than expected severity primarily from accident years 2007 through 2011.

• Asbestos: $7.1 million increase primarily related to accident years prior to 1990 due to recent development on several claims.

The $1.0 million decrease related to Reinsurance Operations primarily consisted of the following:

• Property: A $4.7 million reduction driven by less catastrophe losses than anticipated primarily from accident years 2012 and 2013.

• Marine: A $3.0 million increase primarily related to increased severity from accident years 2011 and 2012. These treaties are in runoff. Several claims have recently settled for amounts higher than expected.

• Commercial Auto: $0.7 million increase is primarily due to increased severity primarily from accident years 2009 and 2010.

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Shareholders' Equity

9 Months Ended

Sep. 30, 2015

Shareholders' Equity

9. Shareholders’ Equity

Repurchases of the Company’s A ordinary shares

No shares were repurchased during the quarters ended September 30, 2015 and 2014. During the nine months ended September 30, 2015 and 2014, the Company repurchased 11,895 share and 5,444 shares, respectively, with an average price paid of $28.03 per share and $ 25.46 per share, respectively.

Please see Note 11 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2014 Annual Report on Form 10-K for more information on the Company’s repurchase program.

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Derivative Instruments - Additional Information (Detail) - Other Assets $ in Millions	Sep. 30, 2015 USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Collateral posted for derivatives	$ 4.8
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Margin calls made in connection with interest rate swaps	$ 18.8

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Estimated Earned Premium and Incurred Losses (Detail) - Hiscox Bermuda - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Related Party Transaction [Line Items]
Assumed earned premium	$ 47	$ 1,823	$ 2,294	$ 4,639
Assumed losses and loss adjustment expenses	$ (167)	$ 504	$ 476	$ 1,349

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Current Fair Value of Debt (Detail) - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt		$ 292,144	$ 174,673
Debt, fair value		285,904
Margin borrowing facilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt		195,787	$ 174,673
Debt, fair value		195,787
7.75% Subordinated Notes due 2045
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	[1]	96,357
Debt, fair value	[1]	$ 90,117

[1] As of September 30, 2015, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.6 million.

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Summary of Net Losses Included in Consolidated Statement of Operations for Changes in Fair Value of Derivatives and Periodic net Interest Settlements Under Derivatives (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest Rate Swap | Net Realized Investment Gains
Derivative Instruments, Gain (Loss) [Line Items]
Net gain (loss) for changes in fair value and net settlements of derivatives	$ (8,071)	$ (1,192)	$ (8,896)	$ (13,552)

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Summarizes Options which Deemed to be Anti-dilutive (Detail) - $ / shares		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Potentially Dilutive Securities Outstanding [Line Items]
Shares excluded from calculation of diluted earnings per share		512,500	12,500	512,500	12,500
February 9, 2014
Potentially Dilutive Securities Outstanding [Line Items]
Expiration Date				Feb. 10, 2024
Shares excluded from calculation of diluted earnings per share				300,000
Strike price per share				$ 32.38
January 1, 2015
Potentially Dilutive Securities Outstanding [Line Items]
Expiration Date				Jan. 01, 2025
Shares excluded from calculation of diluted earnings per share				200,000
Strike price per share				$ 28.37
November 2, 2005
Potentially Dilutive Securities Outstanding [Line Items]
Expiration Date	[1]			Nov. 03, 2015
Shares excluded from calculation of diluted earnings per share	[1]			12,500
Strike price per share	[1]			$ 37.70

[1] Represents anti-dilutive options at September 30, 2014.

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2015

Summary of Business Segment Information

The following are tabulations of business segment information for the quarters and nine months ended September 30, 2015 and 2014.

Quarter Ended September 30, 2015: (Dollars in thousands)	Commercial Lines (1)			Personal Lines (1)			Reinsurance Operations (2)			Total
Revenues:
Gross premiums written	$	52,920		$	87,349		$	9,879		$	150,148
Net premiums written	$	49,325		$	63,302		$	9,870		$	122,497
Net premiums earned	$	48,916		$	62,132		$	13,659		$	124,707
Other income (loss)		102			1,188			(11	)		1,279
Total revenues		49,018			63,320			13,648			125,986
Losses and Expenses:
Net losses and loss adjustment expenses		22,832			48,899			5,960			77,691
Acquisition costs and other underwriting expenses		20,686	(3)		25,779	(4)		4,469			50,934
Income (loss) from segments	$	5,500		$	(11,358	)	$	3,219		$	(2,639	)
Unallocated Items:
Net investment income											8,852
Net realized investment losses											(10,778	)
Corporate and other operating expenses											(3,567	)
Interest expense											(1,595	)
Income before income taxes											(9,727	)
Income tax benefit											5,981
Net income											(3,746	)
Total assets	$	1,005,435		$	572,807		$	740,377	(5)	$	2,318,619

(1) Includes business ceded to the Company’s Reinsurance Operations.

(2) External business only, excluding business assumed from affiliates.

(3) Includes federal excise tax of $258 relating to cessions from Commercial Lines to Reinsurance Operations.

(4) Includes federal excise tax of $310 relating to cessions from Personal Lines to Reinsurance Operations.

(5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

Quarter Ended September 30, 2014: (Dollars in thousands)	Commercial Lines (1)			Reinsurance Operations (2)			Total
Revenues:
Gross premiums written	$	56,489		$	10,609		$	67,098
Net premiums written	$	52,674		$	10,588		$	63,262
Net premiums earned	$	52,462		$	15,566		$	68,028
Other income (loss)		164			(38	)		126
Total revenues		52,626			15,528			68,154
Losses and Expenses:
Net losses and loss adjustment expenses		29,575			7,079			36,654
Acquisition costs and other underwriting expenses		21,790	(3)		5,668			27,458
Income (loss) from segments	$	1,261		$	2,781			4,042
Unallocated Items:
Net investment income								6,527
Net realized investment gains								1,158
Corporate and other operating expenses								(3,481	)
Interest expense								(118	)
Income before income taxes								8,128
Income tax expense								1,633
Net income							$	9,761
Total assets	$	1,229,463		$	650,352	(4)	$	1,879,815

(1) Includes business ceded to the Company’s Reinsurance Operations.

(2) External business only, excluding business assumed from affiliates.

(3) Includes federal excise tax of $277 relating to cessions from Commercial Lines to Reinsurance Operations.

(4) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

Nine Months Ended September 30, 2015: (Dollars in thousands)	Commercial Lines (1)			Personal Lines (1)			Reinsurance Operations (2)			Total
Revenues:
Gross premiums written	$	161,746		$	249,564		$	48,222		$	459,532
Net premiums written	$	149,647		$	196,785		$	48,174		$	394,606
Net premiums earned	$	149,244		$	191,472		$	40,205		$	380,921
Other income (loss)		420			2,065			(77	)		2,408
Total revenues		149,664			193,537			40,128			383,329
Losses and Expenses:
Net losses and loss adjustment expenses		82,474			129,997			14,399			226,870
Acquisition costs and other underwriting expenses		61,317	(3)		74,590	(4)		14,211			150,118
Income from segments	$	5,873		$	(11,050	)	$	11,518		$	6,341
Unallocated Items:
Net investment income											26,234
Net realized investment losses											(7,216	)
Corporate and other operating expenses											(19,441	)
Interest expense											(2,635	)
Income before income taxes											3,283
Income tax benefit											10,882
Net income											14,165
Total assets	$	1,005,435		$	572,807		$	740,377	(5)	$	2,318,619

(1) Includes business ceded to the Company’s Reinsurance Operations.

(2) External business only, excluding business assumed from affiliates.

(3) Includes federal excise tax of $787 relating to cessions from Commercial Lines to Reinsurance Operations.

(4) Includes federal excise tax of $957 relating to cessions from Personal Lines to Reinsurance Operations.

(5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

Nine Months Ended September 30, 2014: (Dollars in thousands)	Commercial Lines (1)			Reinsurance Operations (2)			Total
Revenues:
Gross premiums written	$	170,037		$	57,163		$	227,200
Net premiums written	$	156,369			56,126		$	212,495
Net premiums earned	$	158,809		$	42,780		$	201,589
Other income (loss)		490			(41	)		449
Total revenues		159,299			42,739			202,038
Losses and Expenses:
Net losses and loss adjustment expenses		97,047			16,449			113,496
Acquisition costs and other underwriting expenses		66,068	(3)		15,046			81,114
Income (loss) from segments	$	(3,816	)	$	11,244			7,428
Unallocated Items:
Net investment income								22,488
Net realized investment gains								40,226
Corporate and other operating expenses								(9,614	)
Interest expense								(628	)
Income before income taxes								59,900
Income tax expense								(8,108	)
Net income							$	51,792
Total assets	$	1,229,463		$	650,352	(4)	$	1,879,815

(1) Includes business ceded to the Company’s Reinsurance Operations.

(2) External business only, excluding business assumed from affiliates.

(3) Includes federal excise tax of $838 relating to cessions from Commercial Lines to Reinsurance Operations.

(4) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

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Schedule of Credit Losses Recognized in Earnings (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Schedule of Available-for-sale Securities [Line Items]
Balance at beginning of period	$ 31	$ 50	$ 50	$ 54
Additions where no OTTI was previously recorded	0	0	0	0
Additions where an OTTI was previously recorded	0	0	0	0
Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery	0	0	0	0
Reductions reflecting increases in expected cash flows to be collected	0	0	0	0
Reductions for securities sold during the period			(19)	(4)
Balance at end of period	$ 31	$ 50	$ 31	$ 50

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Segment Information

9 Months Ended

Sep. 30, 2015

Segment Information

14. Segment Information

The acquisition of American Reliable has impacted the way the Company manages and analyzes its operating results. The business acquired from American Reliable is considered to be a separate segment, Personal Lines. The Company now manages its business through three business segments: Commercial Lines, managed in Bala Cynwyd, PA, offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs; Personal Lines, managed in Scottsdale, AZ, offers specialty personal lines and agricultural coverage; and Reinsurance Operations, managed in Bermuda, provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies.

The following are tabulations of business segment information for the quarters and nine months ended September 30, 2015 and 2014.

Quarter Ended September 30, 2015: (Dollars in thousands)	Commercial Lines (1)			Personal Lines (1)			Reinsurance Operations (2)			Total
Revenues:
Gross premiums written	$	52,920		$	87,349		$	9,879		$	150,148
Net premiums written	$	49,325		$	63,302		$	9,870		$	122,497
Net premiums earned	$	48,916		$	62,132		$	13,659		$	124,707
Other income (loss)		102			1,188			(11	)		1,279
Total revenues		49,018			63,320			13,648			125,986
Losses and Expenses:
Net losses and loss adjustment expenses		22,832			48,899			5,960			77,691
Acquisition costs and other underwriting expenses		20,686	(3)		25,779	(4)		4,469			50,934
Income (loss) from segments	$	5,500		$	(11,358	)	$	3,219		$	(2,639	)
Unallocated Items:
Net investment income											8,852
Net realized investment losses											(10,778	)
Corporate and other operating expenses											(3,567	)
Interest expense											(1,595	)
Income before income taxes											(9,727	)
Income tax benefit											5,981
Net income											(3,746	)
Total assets	$	1,005,435		$	572,807		$	740,377	(5)	$	2,318,619

(1) Includes business ceded to the Company’s Reinsurance Operations.

(2) External business only, excluding business assumed from affiliates.

(3) Includes federal excise tax of $258 relating to cessions from Commercial Lines to Reinsurance Operations.

(4) Includes federal excise tax of $310 relating to cessions from Personal Lines to Reinsurance Operations.

(5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

Quarter Ended September 30, 2014: (Dollars in thousands)	Commercial Lines (1)			Reinsurance Operations (2)			Total
Revenues:
Gross premiums written	$	56,489		$	10,609		$	67,098
Net premiums written	$	52,674		$	10,588		$	63,262
Net premiums earned	$	52,462		$	15,566		$	68,028
Other income (loss)		164			(38	)		126
Total revenues		52,626			15,528			68,154
Losses and Expenses:
Net losses and loss adjustment expenses		29,575			7,079			36,654
Acquisition costs and other underwriting expenses		21,790	(3)		5,668			27,458
Income (loss) from segments	$	1,261		$	2,781			4,042
Unallocated Items:
Net investment income								6,527
Net realized investment gains								1,158
Corporate and other operating expenses								(3,481	)
Interest expense								(118	)
Income before income taxes								8,128
Income tax expense								1,633
Net income							$	9,761
Total assets	$	1,229,463		$	650,352	(4)	$	1,879,815

(1) Includes business ceded to the Company’s Reinsurance Operations.

(2) External business only, excluding business assumed from affiliates.

(3) Includes federal excise tax of $277 relating to cessions from Commercial Lines to Reinsurance Operations.

(4) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

Nine Months Ended September 30, 2015: (Dollars in thousands)	Commercial Lines (1)			Personal Lines (1)			Reinsurance Operations (2)			Total
Revenues:
Gross premiums written	$	161,746		$	249,564		$	48,222		$	459,532
Net premiums written	$	149,647		$	196,785		$	48,174		$	394,606
Net premiums earned	$	149,244		$	191,472		$	40,205		$	380,921
Other income (loss)		420			2,065			(77	)		2,408
Total revenues		149,664			193,537			40,128			383,329
Losses and Expenses:
Net losses and loss adjustment expenses		82,474			129,997			14,399			226,870
Acquisition costs and other underwriting expenses		61,317	(3)		74,590	(4)		14,211			150,118
Income from segments	$	5,873		$	(11,050	)	$	11,518		$	6,341
Unallocated Items:
Net investment income											26,234
Net realized investment losses											(7,216	)
Corporate and other operating expenses											(19,441	)
Interest expense											(2,635	)
Income before income taxes											3,283
Income tax benefit											10,882
Net income											14,165
Total assets	$	1,005,435		$	572,807		$	740,377	(5)	$	2,318,619

(1) Includes business ceded to the Company’s Reinsurance Operations.

(2) External business only, excluding business assumed from affiliates.

(3) Includes federal excise tax of $787 relating to cessions from Commercial Lines to Reinsurance Operations.

(4) Includes federal excise tax of $957 relating to cessions from Personal Lines to Reinsurance Operations.

(5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

Nine Months Ended September 30, 2014: (Dollars in thousands)	Commercial Lines (1)			Reinsurance Operations (2)			Total
Revenues:
Gross premiums written	$	170,037		$	57,163		$	227,200
Net premiums written	$	156,369			56,126		$	212,495
Net premiums earned	$	158,809		$	42,780		$	201,589
Other income (loss)		490			(41	)		449
Total revenues		159,299			42,739			202,038
Losses and Expenses:
Net losses and loss adjustment expenses		97,047			16,449			113,496
Acquisition costs and other underwriting expenses		66,068	(3)		15,046			81,114
Income (loss) from segments	$	(3,816	)	$	11,244			7,428
Unallocated Items:
Net investment income								22,488
Net realized investment gains								40,226
Corporate and other operating expenses								(9,614	)
Interest expense								(628	)
Income before income taxes								59,900
Income tax expense								(8,108	)
Net income							$	51,792
Total assets	$	1,229,463		$	650,352	(4)	$	1,879,815

(1) Includes business ceded to the Company’s Reinsurance Operations.

(2) External business only, excluding business assumed from affiliates.

(3) Includes federal excise tax of $838 relating to cessions from Commercial Lines to Reinsurance Operations.

(4) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

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Investments (Tables)

9 Months Ended

Sep. 30, 2015

Schedule of Amortized Cost and Estimated Fair Value of Investments

The amortized cost and estimated fair value of investments were as follows as of September 30, 2015 and December 31, 2014:

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Other than temporary impairments recognized in AOCI (1)
As of September 30, 2015
Fixed maturities:
U.S. treasury and agency obligations	$	95,312	$	1,972	$	(9	)	$	97,275	$	—
Obligations of states and political subdivisions		232,532		3,538		(670	)		235,400		—
Mortgage-backed securities		185,359		3,203		(159	)		188,403		—
Asset-backed securities		278,059		1,391		(616	)		278,834		(10	)
Commercial mortgage-backed securities		160,829		74		(827	)		160,076		—
Corporate bonds		459,840		2,526		(1,072	)		461,294		—
Foreign corporate bonds		127,261		573		(231	)		127,603		—
Total fixed maturities		1,539,192		13,277		(3,584	)		1,548,885		(10	)
Common stock		99,257		12,359		(4,950	)		106,666		—
Other invested assets		31,137		2,418		—			33,555		—
Total	$	1,669,586	$	28,054	$	(8,534	)	$	1,689,106	$	(10	)

(1) Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”).

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Other than temporary impairments recognized in AOCI (2)
As of December 31, 2014
Fixed maturities:
U.S. treasury and agency obligations	$	78,569	$	2,281	$	(83	)	$	80,767	$	—
Obligations of states and political subdivisions		188,452		3,718		(697	)		191,473		—
Mortgage-backed securities		205,814		3,709		(764	)		208,759		(4	)
Asset-backed securities		177,853		713		(303	)		178,263		(13	)
Commercial mortgage-backed securities		133,984		21		(847	)		133,158		—
Corporate bonds		380,704		3,421		(709	)		383,416		—
Foreign corporate bonds		107,572		625		(558	)		107,639		—
Total fixed maturities		1,272,948		14,488		(3,961	)		1,283,475		(17	)
Common stock		99,297		25,689		(2,938	)		122,048		—
Other invested assets		33,174		489		—			33,663		—
Total	$	1,405,419	$	40,666	$	(6,899	)	$	1,439,186	$	(17	)

(2) Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”).

Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities

The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at September 30, 2015, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(Dollars in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	142,231	$	143,283
Due in one year through five years		701,239		705,430
Due in five years through ten years		49,986		50,812
Due in ten years through fifteen years		3,799		4,277
Due after fifteen years		17,690		17,770
Mortgage-backed securities		185,359		188,403
Asset-backed securities		278,059		278,834
Commercial mortgage-backed securities		160,829		160,076
Total	$	1,539,192	$	1,548,885

Summary of Securities With Gross Unrealized Losses

The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of September 30, 2015:

	Less than 12 months					12 months or longer (1)					Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed maturities:
U.S. treasury and agency obligations	$	—	$	—		$	3,413	$	(9	)	$	3,413	$	(9	)
Obligations of states and political subdivisions		43,194		(573	)		9,510		(97	)		52,704		(670	)
Mortgage-backed securities		23,004		(114	)		255		(45	)		23,259		(159	)
Asset-backed securities		107,361		(588	)		4,531		(28	)		111,892		(616	)
Commercial mortgage-backed securities		110,702		(687	)		15,453		(140	)		126,155		(827	)
Corporate bonds		145,181		(1,051	)		2,974		(21	)		148,155		(1,072	)
Foreign corporate bonds		42,441		(231	)		—		—			42,441		(231	)
Total fixed maturities		471,883		(3,244	)		36,136		(340	)		508,019		(3,584	)
Common stock		38,128		(4,950	)		—		—			38,128		(4,950	)
Total	$	510,011	$	(8,194	)	$	36,136	$	(340	)	$	546,147	$	(8,534	)

(1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired.

The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2014:

	Less than 12 months					12 months or longer (1)					Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed maturities:
U.S. treasury and agency obligations	$	11,728	$	(9	)	$	3,343	$	(74	)	$	15,071	$	(83	)
Obligations of states and political subdivisions		28,684		(314	)		28,061		(383	)		56,745		(697	)
Mortgage-backed securities		2,818		(7	)		51,203		(757	)		54,021		(764	)
Asset-backed securities		92,123		(283	)		1,683		(20	)		93,806		(303	)
Commercial mortgage-backed securities		92,664		(525	)		26,280		(322	)		118,944		(847	)
Corporate bonds		144,505		(656	)		3,216		(53	)		147,721		(709	)
Foreign corporate bonds		60,518		(558	)		—		—			60,518		(558	)
Total fixed maturities		433,040		(2,352	)		113,786		(1,609	)		546,826		(3,961	)
Common stock		20,002		(2,808	)		1,577		(130	)		21,579		(2,938	)
Total	$	453,042	$	(5,160	)	$	115,363	$	(1,739	)	$	568,405	$	(6,899	)

(1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired.

Schedule of Other Than Temporary Impairments on Investments

The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the quarters and nine months ended September 30, 2015 and 2014:

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Fixed maturities:
OTTI losses, gross	$	—		$	(6	)	$	(23	)	$	(31	)
Portion of loss recognized in other comprehensive income (pre-tax)		—			—			—			—
Net impairment losses on fixed maturities recognized in earnings		—			(6	)		(23	)		(31	)
Equity securities		(4,641	)		—			(6,856	)		(37	)
Total	$	(4,641	)	$	(6	)	$	(6,879	)	$	(68	)

Schedule of Credit Losses Recognized in Earnings

The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company for the quarters and nine months ended September 30, 2015 and 2014 for which a portion of the OTTI loss was recognized in other comprehensive income.

	Quarters Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2015		2014		2015			2014
Balance at beginning of period	$	31	$	50	$	50		$	54
Additions where no OTTI was previously recorded		—		—		—			—
Additions where an OTTI was previously recorded		—		—		—			—
Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery		—		—		—			—
Reductions reflecting increases in expected cash flows to be collected		—		—		—			—
Reductions for securities sold during the period		—		—		(19	)		(4	)
Balance at end of period	$	31	$	50	$	31		$	50

Schedule of Accumulated Other Comprehensive Income, Net of Tax

Accumulated Other Comprehensive Income, Net of Tax

Accumulated other comprehensive income, net of tax, as of September 30, 2015 and December 31, 2014 was as follows:

(Dollars in thousands)	September 30, 2015			December 31, 2014
Net unrealized gains from:
Fixed maturities	$	9,693		$	10,527
Common stock		7,409			22,751
Other		970			369
Deferred taxes		(4,827	)		(10,263	)
Accumulated other comprehensive income, net of tax	$	13,245		$	23,384

Changes in Accumulated Other Comprehensive Income

The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the quarters and nine months ended September 30, 2015 and 2014:

Quarter Ended September 30, 2015 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities, Net of Tax			Foreign Currency Items, Net of Tax			Accumulated Other Comprehensive Income, Net of Tax
Beginning balance	$	20,201		$	(99)		$	20,102
Other comprehensive income (loss) before reclassification		(9,009	)		(47	)		(9,056	)
Amounts reclassified from accumulated other comprehensive income (loss)		2,129			70			2,199
Other comprehensive income (loss)		(6,880	)		23			(6,857	)
Ending balance	$	13,321		$	(76	)	$	13,245

Quarter Ended September 30, 2014 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities, Net of Tax			Foreign Currency Items, Net of Tax			Accumulated Other Comprehensive Income, Net of Tax
Beginning balance	$	33,928		$	73		$	34,001
Other comprehensive income (loss) before reclassification		(7,295	)		(228	)		(7,523	)
Amounts reclassified from accumulated other comprehensive income (loss)		(1,523	)		(1	)		(1,524	)
Other comprehensive income (loss)		(8,818	)		(229	)		(9,047	)
Ending balance	$	25,110		$	(156	)	$	24,954

Nine Months Ended September 30, 2015 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities, Net of Tax			Foreign Currency Items, Net of Tax			Accumulated Other Comprehensive Income, Net of Tax
Beginning balance	$	23,647		$	(263)		$	23,384
Other comprehensive income (loss) before reclassification		(9,413	)		(209	)		(9,622	)
Amounts reclassified from accumulated other comprehensive income (loss)		(913	)		396			(517	)
Other comprehensive income (loss)		(10,326	)		187			(10,139	)
Ending balance	$	13,321		$	(76	)	$	13,245

Nine Months Ended September 30, 2014 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities, Net of Tax			Foreign Currency Items, Net of Tax			Accumulated Other Comprehensive Income, Net of Tax
Beginning balance	$	53,950		$	78		$	54,028
Other comprehensive income (loss) before reclassification		6,396			(158	)		6,238
Amounts reclassified from accumulated other comprehensive income (loss)		(35,236	)		(76	)		(35,312	)
Other comprehensive income (loss)		(28,840	)		(234	)		(29,074	)
Ending balance	$	25,110		$	(156	)	$	24,954

Reclassifications Out of Accumulated Other Comprehensive Income

The reclassifications out of accumulated other comprehensive income for the quarters and nine months ended September 30, 2015 and 2014 were as follows:

		Amounts Reclassified from Accumulated Other Comprehensive Income
		Quarters Ended September 30,
(Dollars in thousands) Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Consolidated Statements of Operations	2015			2014
Unrealized gains and losses on available for sale securities	Other net realized investment (gains)	$	(2,042	)	$	(2,355	)
	Other than temporary impairment losses on investments		4,641			6
	Total before tax		2,599			(2,349	)
	Income tax expense (benefit)		(470	)		826
	Net of tax	$	2,129		$	(1,523	)
Foreign Currency Items	Other net realized investment (gains) losses	$	108		$	(1	)
	Income tax (benefit)		(38	)		—
	Net of tax	$	70		$	(1	)
Total reclassifications	Net of tax	$	2,199		$	(1,524	)

		Amounts Reclassified from Accumulated Other Comprehensive Income
		Nine Months Ended September 30,
(Dollars in thousands) Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Consolidated Statements of Operations	2015			2014
Unrealized gains and losses on available for sale securities	Other net realized investment (gains)	$	(9,168	)	$	(53,729	)
	Other than temporary impairment losses on investments		6,879			68
	Total before tax		(2,289	)		(53,661	)
	Income tax expense		1,376			18,425
	Net of tax	$	(913	)	$	(35,236	)
Foreign Currency Items	Other net realized investment (gains) losses	$	609		$	(117	)
	Income tax expense (benefit)		(213	)		41
	Net of tax	$	396		$	(76	)
Total reclassifications	Net of tax	$	(517	)	$	(35,312	)

Components of Net Realized Investment Gains (Losses)

The components of net realized investment gains (losses) for the quarters and nine months ended September 30, 2015 and 2014 were as follows:

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Fixed maturities:
Gross realized gains	$	110		$	262		$	1,589		$	2,651
Gross realized losses		(1,451	)		(471	)		(1,692	)		(697	)
Net realized gains/ (losses)		(1,341	)		(209	)		(103	)		1,954
Common stock:
Gross realized gains		3,494			2,559			9,418			52,434
Gross realized losses		(4,860	)		—			(7,731	)		(610	)
Net realized gains/ (losses)		(1,366	)		2,559			1,687			51,824
Preferred stock:
Gross realized gains		—			—			96			—
Gross realized losses		—			—			—			—
Net realized gains		—			—			96			—
Derivatives:
Gross realized gains		—			147			—			—
Gross realized losses		(8,071	)		(1,339	)		(8,896	)		(13,552	)
Net realized (losses)		(8,071	)		(1,192	)		(8,896	)		(13,552	)
Total net realized investment gains/ (losses)	$	(10,778	)	$	1,158		$	(7,216	)	$	40,226

Proceeds from Sales of Available-for-Sale Securities

The proceeds from sales of available-for-sale securities resulting in net realized investment gains (losses) for the nine months ended September 30, 2015 and 2014 were as follows:

	Nine Months Ended September 30,
(Dollars in thousands)	2015		2014
Fixed maturities	$	290,580	$	350,179
Equity securities		34,161		181,203
Preferred stock		1,540		—

Schedule of Investment Income

The sources of net investment income for the quarters and nine months ended September 30, 2015 and 2014 were as follows:

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Fixed maturities	$	8,673		$	6,791		$	24,709		$	20,843
Equity securities		703			780			2,419			4,861
Cash and cash equivalents		32			14			59			42
Other invested assets		193			—			1,535			87
Total investment income		9,601			7,585			28,722			25,833
Investment expense		(749	)		(1,058	)		(2,488	)		(3,345	)
Net investment income	$	8,852		$	6,527		$	26,234		$	22,488

Schedule of Total Investment Return

The Company’s total investment return on a pre-tax basis for the quarters and nine months ended September 30, 2015 and 2014 were as follows:

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Net investment income	$	8,852		$	6,527		$	26,234		$	22,488
Net realized investment gains (losses)		(10,778	)		1,158			(7,216	)		40,226
Change in unrealized holding gains and losses		(10,420	)		(11,876	)		(15,575	)		(43,650	)
Net realized and unrealized investment returns		(21,198	)		(10,718	)		(22,791	)		(3,424	)
Total investment return	$	(12,346	)	$	(4,191	)	$	3,443		$	19,064
Total investment return % (1)		(0.7	%)		(0.3	%)		0.2	%		1.2	%
Average investment portfolio (2)	$	1,800,993		$	1,558,501		$	1,788,777		$	1,541,336

(1) Not annualized.

(2) Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period.

Municipal Bonds with and without Insurance

The following table provides a breakdown of the ratings for these municipal bonds with and without insurance.

(Dollars in thousands)	Ratings with		Ratings without
Rating	Insurance		Insurance
AA	$	511	$	—
BB		—		511
Total	$	511	$	511

Summary of Insurance Enhanced Municipal Bonds Backed by Financial Guarantors

A summary of the Company’s insurance enhanced municipal bonds that are backed by financial guarantors, including the pre-refunded bonds that are escrowed in U.S. government obligations, as of September 30, 2015, is as follows:

(Dollars in thousands) Financial Guarantor	Total		Pre-refunded Securities		Government Guaranteed Securities		Exposure Net of Pre-refunded & Government Guaranteed Securities
Ambac Financial Group	$	1,686	$	136	$	—	$	1,550
Assured Guaranty Corporation		3,661		—		—		3,661
Municipal Bond Insurance Association		4,920		—		—		4,920
Gov’t National Housing Association		553		—		553		—
Total backed by financial guarantors		10,820		136		553		10,131
Other credit enhanced municipal bonds		8,185		8,185		—		—
Total	$	19,005	$	8,321	$	553	$	10,131

Summary of Estimated Fair Values of Bonds Held on Deposit

The fair values were as follows as of September 30, 2015 and December 31, 2014:

	Estimated Fair Value
(Dollars in thousands)	September 30, 2015		December 31, 2014
On deposit with governmental authorities	$	39,763	$	32,790
Intercompany trusts held for the benefit of U.S. policyholders		555,859		495,301
Held in trust pursuant to third party requirements		69,153		95,828
Letter of credit held for third party requirements		6,112		9,340
Securities held as collateral for borrowing arrangements (1)		248,486		222,809
Total	$	919,373	$	856,068

(1) Amount required to collateralize margin borrowing facilities.

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Summary of Business Segment Information (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Commercial Lines
Segment Reporting Information [Line Items]
Federal excise tax relating to cessions from Insurance Operations to Reinsurance Operations	$ 258	$ 277	$ 787	$ 838
Personal Lines
Segment Reporting Information [Line Items]
Federal excise tax relating to cessions from Insurance Operations to Reinsurance Operations	$ 310		$ 957

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Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value		$ 510,011	$ 453,042
Less than 12 months, Gross Unrealized Losses		(8,194)	(5,160)
12 months or longer, Fair Value	[1]	36,136	115,363
12 months or longer, Gross Unrealized Losses	[1]	(340)	(1,739)
Total, Fair Value		546,147	568,405
Total, Gross Unrealized Losses		(8,534)	(6,899)
Obligations of States and Political Subdivisions
Schedule of Available-for-sale Securities [Line Items]
Total, Gross Unrealized Losses		(670)
Mortgage Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Total, Gross Unrealized Losses		(159)
Asset-backed Securities
Schedule of Available-for-sale Securities [Line Items]
12 months or longer, Gross Unrealized Losses		(28)
Total, Gross Unrealized Losses		(616)
Commercial Mortgage-Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Total, Gross Unrealized Losses		(827)
Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Total, Gross Unrealized Losses		(1,072)
Foreign Corporate Bonds
Schedule of Available-for-sale Securities [Line Items]
Total, Gross Unrealized Losses		(231)
Common Shares
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value		38,128	20,002
Less than 12 months, Gross Unrealized Losses		(4,950)	(2,808)
12 months or longer, Fair Value	[1]		1,577
12 months or longer, Gross Unrealized Losses	[1]		(130)
Total, Fair Value		38,128	21,579
Total, Gross Unrealized Losses		(4,950)	(2,938)
Fixed Maturities
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value		471,883	433,040
Less than 12 months, Gross Unrealized Losses		(3,244)	(2,352)
12 months or longer, Fair Value	[1]	36,136	113,786
12 months or longer, Gross Unrealized Losses	[1]	(340)	(1,609)
Total, Fair Value		508,019	546,826
Total, Gross Unrealized Losses		(3,584)	(3,961)
Fixed Maturities | U.S. Treasury and Agency Obligations
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value			11,728
Less than 12 months, Gross Unrealized Losses			(9)
12 months or longer, Fair Value	[1]	3,413	3,343
12 months or longer, Gross Unrealized Losses	[1]	(9)	(74)
Total, Fair Value		3,413	15,071
Total, Gross Unrealized Losses		(9)	(83)
Fixed Maturities | Obligations of States and Political Subdivisions
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value		43,194	28,684
Less than 12 months, Gross Unrealized Losses		(573)	(314)
12 months or longer, Fair Value	[1]	9,510	28,061
12 months or longer, Gross Unrealized Losses	[1]	(97)	(383)
Total, Fair Value		52,704	56,745
Total, Gross Unrealized Losses		(670)	(697)
Fixed Maturities | Mortgage Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value		23,004	2,818
Less than 12 months, Gross Unrealized Losses		(114)	(7)
12 months or longer, Fair Value	[1]	255	51,203
12 months or longer, Gross Unrealized Losses	[1]	(45)	(757)
Total, Fair Value		23,259	54,021
Total, Gross Unrealized Losses		(159)	(764)
Fixed Maturities | Asset-backed Securities
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value		107,361	92,123
Less than 12 months, Gross Unrealized Losses		(588)	(283)
12 months or longer, Fair Value	[1]	4,531	1,683
12 months or longer, Gross Unrealized Losses	[1]	(28)	(20)
Total, Fair Value		111,892	93,806
Total, Gross Unrealized Losses		(616)	(303)
Fixed Maturities | Commercial Mortgage-Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value		110,702	92,664
Less than 12 months, Gross Unrealized Losses		(687)	(525)
12 months or longer, Fair Value	[1]	15,453	26,280
12 months or longer, Gross Unrealized Losses	[1]	(140)	(322)
Total, Fair Value		126,155	118,944
Total, Gross Unrealized Losses		(827)	(847)
Fixed Maturities | Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value		145,181	144,505
Less than 12 months, Gross Unrealized Losses		(1,051)	(656)
12 months or longer, Fair Value	[1]	2,974	3,216
12 months or longer, Gross Unrealized Losses	[1]	(21)	(53)
Total, Fair Value		148,155	147,721
Total, Gross Unrealized Losses		(1,072)	(709)
Fixed Maturities | Foreign Corporate Bonds
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value		42,441	60,518
Less than 12 months, Gross Unrealized Losses		(231)	(558)
Total, Fair Value		42,441	60,518
Total, Gross Unrealized Losses		$ (231)	$ (558)

[1] Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired.

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Expected Amortization Expense (Detail) - American Reliable Insurance Company $ in Thousands	Sep. 30, 2015 USD ($)
Finite-Lived Intangible Assets [Line Items]
October 1, 2015 to September 30, 2016	$ 2,853
October 1, 2016 to September 30, 2017	176
October 1, 2017 to September 30, 2018	176
October 1, 2018 to September 30, 2019	176
October 1, 2019 to September 30, 2020	$ 176

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net income (loss)	$ (3,746)	$ 9,761	$ 14,165	$ 51,792
Other comprehensive income (loss), net of taxes:
Unrealized holding gains (losses)	(9,078)	(7,293)	(9,808)	6,476
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss)	(1)	(1)	(1)	(4)
Reclassification adjustment for (gains) losses included in net income	2,199	(1,524)	(517)	(35,312)
Unrealized foreign currency translation gains (losses)	23	(229)	187	(234)
Other comprehensive income (loss), net of taxes	(6,857)	(9,047)	(10,139)	(29,074)
Comprehensive income (loss), net of taxes	$ (10,603)	$ 714	$ 4,026	$ 22,718

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Share-Based Compensation Plans - Additional Information (Detail) - $ / shares		3 Months Ended		9 Months Ended
	Jun. 11, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Time Based Option Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options awarded		0	0	200,000	25,000
Unvested stock options forfeited		0	75,000		75,000
Strike price per share				$ 28.37	$ 24.00
Percentage of shares vested on each anniversary of the grant date				33.33%
Time-based options vesting date					2017-02
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued		0	0
Restricted Stock | Key Employee | Stock vest first anniversary of the grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares vested on each anniversary of the grant date				16.50%	16.50%
Vesting period				1 year	1 year
Restricted Stock | Key Employee | Stock vest second anniversary of the grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares vested on each anniversary of the grant date				16.50%	16.50%
Vesting period				2 years	2 years
Restricted Stock | Key Employee | Stock vest third anniversary of the grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares vested on each anniversary of the grant date				17.00%	17.00%
Vesting period				3 years	3 years
Restricted Stock | Key Employee | Vesting Schedule Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares vested on each anniversary of the grant date				100.00%	100.00%
Vesting period				3 years	3 years
Percentage of stock award subject to vesting				50.00%	50.00%
Restricted Stock | Key Employee | Time Based Vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued				83,875	78,166
Restricted Stock | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares vested on each anniversary of the grant date				33.33%	33.33%
Number of shares issued				10,574	11,857
Vesting period				3 years	3 years
Restricted Stock | Chief Executive Officer And Other Key Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares vested on each anniversary of the grant date				100.00%
Number of shares issued				44,058
Vesting date				Jan. 01, 2018
Ordinary Shares A | Key Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued				138,507	95,694
Weighted average grant date value of shares granted				$ 28.37	$ 25.37
Ordinary Shares A | Key Employee | First Vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares vested on each anniversary of the grant date					33.33%
Number of shares issued					5,671
Vesting period					3 years
Ordinary Shares A | Non Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date value of shares granted		$ 26.17	$ 25.23	$ 27.31	$ 25.84
Number of shares earned not granted		9,392	9,498	27,437	27,676
Ordinary Shares A | Non Employee Director | Revised Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued	18,838

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Investments

9 Months Ended

Sep. 30, 2015

Investments

The amortized cost and estimated fair value of investments were as follows as of September 30, 2015 and December 31, 2014:

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Other than temporary impairments recognized in AOCI (1)
As of September 30, 2015
Fixed maturities:
U.S. treasury and agency obligations	$	95,312	$	1,972	$	(9	)	$	97,275	$	—
Obligations of states and political subdivisions		232,532		3,538		(670	)		235,400		—
Mortgage-backed securities		185,359		3,203		(159	)		188,403		—
Asset-backed securities		278,059		1,391		(616	)		278,834		(10	)
Commercial mortgage-backed securities		160,829		74		(827	)		160,076		—
Corporate bonds		459,840		2,526		(1,072	)		461,294		—
Foreign corporate bonds		127,261		573		(231	)		127,603		—
Total fixed maturities		1,539,192		13,277		(3,584	)		1,548,885		(10	)
Common stock		99,257		12,359		(4,950	)		106,666		—
Other invested assets		31,137		2,418		—			33,555		—
Total	$	1,669,586	$	28,054	$	(8,534	)	$	1,689,106	$	(10	)

(1) Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”).

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Other than temporary impairments recognized in AOCI (2)
As of December 31, 2014
Fixed maturities:
U.S. treasury and agency obligations	$	78,569	$	2,281	$	(83	)	$	80,767	$	—
Obligations of states and political subdivisions		188,452		3,718		(697	)		191,473		—
Mortgage-backed securities		205,814		3,709		(764	)		208,759		(4	)
Asset-backed securities		177,853		713		(303	)		178,263		(13	)
Commercial mortgage-backed securities		133,984		21		(847	)		133,158		—
Corporate bonds		380,704		3,421		(709	)		383,416		—
Foreign corporate bonds		107,572		625		(558	)		107,639		—
Total fixed maturities		1,272,948		14,488		(3,961	)		1,283,475		(17	)
Common stock		99,297		25,689		(2,938	)		122,048		—
Other invested assets		33,174		489		—			33,663		—
Total	$	1,405,419	$	40,666	$	(6,899	)	$	1,439,186	$	(17	)

(2) Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”).

Excluding U.S. treasuries and agency bonds, the Company did not hold any debt or equity investments in a single issuer that was in excess of 4% of shareholders’ equity at September 30, 2015 or December 31, 2014.

The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at September 30, 2015, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(Dollars in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	142,231	$	143,283
Due in one year through five years		701,239		705,430
Due in five years through ten years		49,986		50,812
Due in ten years through fifteen years		3,799		4,277
Due after fifteen years		17,690		17,770
Mortgage-backed securities		185,359		188,403
Asset-backed securities		278,059		278,834
Commercial mortgage-backed securities		160,829		160,076
Total	$	1,539,192	$	1,548,885

The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of September 30, 2015:

	Less than 12 months					12 months or longer (1)					Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed maturities:
U.S. treasury and agency obligations	$	—	$	—		$	3,413	$	(9	)	$	3,413	$	(9	)
Obligations of states and political subdivisions		43,194		(573	)		9,510		(97	)		52,704		(670	)
Mortgage-backed securities		23,004		(114	)		255		(45	)		23,259		(159	)
Asset-backed securities		107,361		(588	)		4,531		(28	)		111,892		(616	)
Commercial mortgage-backed securities		110,702		(687	)		15,453		(140	)		126,155		(827	)
Corporate bonds		145,181		(1,051	)		2,974		(21	)		148,155		(1,072	)
Foreign corporate bonds		42,441		(231	)		—		—			42,441		(231	)
Total fixed maturities		471,883		(3,244	)		36,136		(340	)		508,019		(3,584	)
Common stock		38,128		(4,950	)		—		—			38,128		(4,950	)
Total	$	510,011	$	(8,194	)	$	36,136	$	(340	)	$	546,147	$	(8,534	)

(1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired.

The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2014:

	Less than 12 months					12 months or longer (1)					Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed maturities:
U.S. treasury and agency obligations	$	11,728	$	(9	)	$	3,343	$	(74	)	$	15,071	$	(83	)
Obligations of states and political subdivisions		28,684		(314	)		28,061		(383	)		56,745		(697	)
Mortgage-backed securities		2,818		(7	)		51,203		(757	)		54,021		(764	)
Asset-backed securities		92,123		(283	)		1,683		(20	)		93,806		(303	)
Commercial mortgage-backed securities		92,664		(525	)		26,280		(322	)		118,944		(847	)
Corporate bonds		144,505		(656	)		3,216		(53	)		147,721		(709	)
Foreign corporate bonds		60,518		(558	)		—		—			60,518		(558	)
Total fixed maturities		433,040		(2,352	)		113,786		(1,609	)		546,826		(3,961	)
Common stock		20,002		(2,808	)		1,577		(130	)		21,579		(2,938	)
Total	$	453,042	$	(5,160	)	$	115,363	$	(1,739	)	$	568,405	$	(6,899	)

(1) Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired.

The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each fixed maturity security in an unrealized loss position to assess whether the security is a candidate for credit loss. Specifically, the Company considers credit rating, market price, and issuer specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities for which the Company determines that a credit loss is likely are subjected to further analysis through discounted cash flow testing to estimate the credit loss to be recognized in earnings, if any. The specific methodologies and significant assumptions used by asset class are discussed below. Upon identification of such securities and periodically thereafter, a detailed review is performed to determine whether the decline is considered other than temporary. This review includes an analysis of several factors, including but not limited to, the credit ratings and cash flows of the securities and the magnitude and length of time that the fair value of such securities is below cost.

For fixed maturities, the factors considered in reaching the conclusion that a decline below cost is other than temporary include, among others, whether:

(1) the issuer is in financial distress;

(2) the investment is secured;

(3) a significant credit rating action occurred;

(4) scheduled interest payments were delayed or missed;

(5) changes in laws or regulations have affected an issuer or industry;

(6) the investment has an unrealized loss and was identified by the Company’s investment manager as an investment to be sold before recovery or maturity; and

(7) the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized.

According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met, the Company must recognize an other than temporary impairment with the entire unrealized loss being recorded through earnings. For debt securities in an unrealized loss position not meeting these conditions, the Company assesses whether the impairment of a security is other than temporary. If the impairment is deemed to be other than temporary, the Company must separate the other than temporary impairment into two components: the amount representing the credit loss and the amount related to all other factors, such as changes in interest rates. The credit loss represents the portion of the amortized book value in excess of the net present value of the projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. The credit loss component of the other than temporary impairment is recorded through earnings, whereas the amount relating to factors other than credit losses is recorded in other comprehensive income, net of taxes.

For equity securities, management carefully reviews all securities with unrealized losses to determine if a security should be impaired and further focuses on securities that have either:

(1) persisted with unrealized losses for more than twelve consecutive months or

(2) the value of the investment has been 20% or more below cost for six continuous months or more.

The amount of any write-down, including those that are deemed to be other than temporary, is included in earnings as a realized loss in the period in which the impairment arose.

The following is a description, by asset type, of the methodology and significant inputs that the Company used to measure the amount of credit loss recognized in earnings, if any:

U.S. treasury and agency obligations – As of September 30, 2015, gross unrealized losses related to U.S. treasury and agency obligations were $0.009 million. All unrealized losses have been in an unrealized loss position for twelve months or greater and are rated AA+. Macroeconomic and market analysis is conducted in evaluating these securities. The analysis is driven by moderate interest rate anticipation, yield curve management, and security selection.

Obligations of states and political subdivisions – As of September 30, 2015, gross unrealized losses related to obligations of states and political subdivisions were $0.670 million. Of this amount, $0.097 million have been in an unrealized loss position for twelve months or greater and are rated A or better. All factors that influence performance of the municipal bond market are considered in evaluating these securities. The aforementioned factors include investor expectations, supply and demand patterns, and current versus historical yield and spread relationships. The analysis relies on the output of fixed income credit analysts, as well as dedicated municipal bond analysts who perform extensive in-house fundamental analysis on each issuer, regardless of their rating by the major agencies.

Mortgage-backed securities (“MBS”) – As of September 30, 2015, gross unrealized losses related to mortgage-backed securities were $0.159 million. Of this amount, $0.045 million have been in an unrealized loss position for twelve months or greater and are rated CC. Mortgage-backed securities are modeled to project principal losses under downside, base, and upside scenarios for the economy and home prices. The primary assumption that drives the security and loan level modeling is the Home Price Index (“HPI”) projection. The model first projects HPI at the national level, then at the zip-code level based on the historical relationship between the individual zip code HPI and the national HPI. The model utilizes loan level data and borrower characteristics including FICO score, geographic location, original and current loan size, loan age, mortgage rate and type (fixed rate / interest-only / adjustable rate mortgage), issuer / originator, residential type (owner occupied / investor property), dwelling type (single family / multi-family), loan purpose, level of documentation, and delinquency status as inputs. The model also includes the explicit treatment of silent second liens, utilization of loan modification history, and the application of roll rate adjustments.

Asset-backed securities (“ABS”) – As of September 30, 2015, gross unrealized losses related to asset backed securities were $0.616 million. Of this amount, $0.028 million has been in an unrealized loss position for 12 months or greater and are rated AAA. The weighted average credit enhancement for the Company’s asset backed portfolio is 21.9. This represents the percentage of pool losses that can occur before an asset backed security will incur its first dollar of principal losses. Every ABS transaction is analyzed on a stand-alone basis. This analysis involves a thorough review of the collateral, prepayment, and structural risk in each transaction. Additionally, the analysis includes an in-depth credit analysis of the originator and servicer of the collateral. The analysis projects an expected loss for a deal given a set of assumptions specific to the asset type. These assumptions are used to calculate at what level of losses the deal will incur its first dollar of principal loss. The major assumptions used to calculate this ratio are loss severities, recovery lags, and no advances on principal and interest.

Commercial mortgage-backed securities (“CMBS”) – As of September 30, 2015, gross unrealized losses related to the CMBS portfolio were $0.827 million. Of this amount, $0.140 million have been in an unrealized loss position for twelve months or greater, of which, 81.0% are rated AA- or better. The weighted average credit enhancement for the Company’s CMBS portfolio is 35.7. This represents the percentage of pool losses that can occur before a mortgage-backed security will incur its first dollar of principal loss. For the Company’s CMBS portfolio, a loan level analysis is utilized where every underlying CMBS loan is re-underwritten based on a set of assumptions reflecting expectations for the future path of the economy. In the analysis, the focus is centered on stressing the significant variables that influence commercial loan defaults and collateral losses in CMBS deals. These variables include: (1) a projected drop in occupancies; (2) capitalization rates that vary by property type and are forecasted to return to more normalized levels as the capital markets repair and capital begins to flow again; and (3) property value stress testing using projected property performance and projected capitalization rates. Term risk is triggered if the projected debt service coverage rate falls below 1x. Balloon risk is triggered if a property’s projected performance does not satisfy new tighter mortgage standards.

Corporate bonds – As of September 30, 2015, gross unrealized losses related to corporate bonds were $1.072 million. Of this amount, $0.021 million have been in an unrealized loss position for twelve months or greater and are rated BBB or better. The analysis for this sector includes maintaining detailed financial models that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default.

Foreign bonds – As of September 30, 2015, gross unrealized losses related to foreign bonds were $0.231 million. All unrealized losses have been in an unrealized loss position for less than twelve months. For this sector, detailed financial models are maintained that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default.

Common stock – As of September 30, 2015, gross unrealized losses related to common stock were $4.950 million. All unrealized losses have been in an unrealized loss position for less than 12 months. To determine if an other than temporary impairment of an equity security has occurred, the Company considers, among other things, the severity and duration of the decline in fair value of the equity security. The Company also examines other factors to determine if the equity security could recover its value in a reasonable period of time.

The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the quarters and nine months ended September 30, 2015 and 2014:

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Fixed maturities:
OTTI losses, gross	$	—		$	(6	)	$	(23	)	$	(31	)
Portion of loss recognized in other comprehensive income (pre-tax)		—			—			—			—
Net impairment losses on fixed maturities recognized in earnings		—			(6	)		(23	)		(31	)
Equity securities		(4,641	)		—			(6,856	)		(37	)
Total	$	(4,641	)	$	(6	)	$	(6,879	)	$	(68	)

The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company for the quarters and nine months ended September 30, 2015 and 2014 for which a portion of the OTTI loss was recognized in other comprehensive income.

	Quarters Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2015		2014		2015			2014
Balance at beginning of period	$	31	$	50	$	50		$	54
Additions where no OTTI was previously recorded		—		—		—			—
Additions where an OTTI was previously recorded		—		—		—			—
Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery		—		—		—			—
Reductions reflecting increases in expected cash flows to be collected		—		—		—			—
Reductions for securities sold during the period		—		—		(19	)		(4	)
Balance at end of period	$	31	$	50	$	31		$	50

Accumulated Other Comprehensive Income, Net of Tax

Accumulated other comprehensive income, net of tax, as of September 30, 2015 and December 31, 2014 was as follows:

(Dollars in thousands)	September 30, 2015			December 31, 2014
Net unrealized gains from:
Fixed maturities	$	9,693		$	10,527
Common stock		7,409			22,751
Other		970			369
Deferred taxes		(4,827	)		(10,263	)
Accumulated other comprehensive income, net of tax	$	13,245		$	23,384

The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the quarters and nine months ended September 30, 2015 and 2014:

Quarter Ended September 30, 2015 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities, Net of Tax			Foreign Currency Items, Net of Tax			Accumulated Other Comprehensive Income, Net of Tax
Beginning balance	$	20,201		$	(99)		$	20,102
Other comprehensive income (loss) before reclassification		(9,009	)		(47	)		(9,056	)
Amounts reclassified from accumulated other comprehensive income (loss)		2,129			70			2,199
Other comprehensive income (loss)		(6,880	)		23			(6,857	)
Ending balance	$	13,321		$	(76	)	$	13,245

Quarter Ended September 30, 2014 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities, Net of Tax			Foreign Currency Items, Net of Tax			Accumulated Other Comprehensive Income, Net of Tax
Beginning balance	$	33,928		$	73		$	34,001
Other comprehensive income (loss) before reclassification		(7,295	)		(228	)		(7,523	)
Amounts reclassified from accumulated other comprehensive income (loss)		(1,523	)		(1	)		(1,524	)
Other comprehensive income (loss)		(8,818	)		(229	)		(9,047	)
Ending balance	$	25,110		$	(156	)	$	24,954

Nine Months Ended September 30, 2015 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities, Net of Tax			Foreign Currency Items, Net of Tax			Accumulated Other Comprehensive Income, Net of Tax
Beginning balance	$	23,647		$	(263)		$	23,384
Other comprehensive income (loss) before reclassification		(9,413	)		(209	)		(9,622	)
Amounts reclassified from accumulated other comprehensive income (loss)		(913	)		396			(517	)
Other comprehensive income (loss)		(10,326	)		187			(10,139	)
Ending balance	$	13,321		$	(76	)	$	13,245

Nine Months Ended September 30, 2014 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities, Net of Tax			Foreign Currency Items, Net of Tax			Accumulated Other Comprehensive Income, Net of Tax
Beginning balance	$	53,950		$	78		$	54,028
Other comprehensive income (loss) before reclassification		6,396			(158	)		6,238
Amounts reclassified from accumulated other comprehensive income (loss)		(35,236	)		(76	)		(35,312	)
Other comprehensive income (loss)		(28,840	)		(234	)		(29,074	)
Ending balance	$	25,110		$	(156	)	$	24,954

The reclassifications out of accumulated other comprehensive income for the quarters and nine months ended September 30, 2015 and 2014 were as follows:

		Amounts Reclassified from Accumulated Other Comprehensive Income
		Quarters Ended September 30,
(Dollars in thousands) Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Consolidated Statements of Operations	2015			2014
Unrealized gains and losses on available for sale securities	Other net realized investment (gains)	$	(2,042	)	$	(2,355	)
	Other than temporary impairment losses on investments		4,641			6
	Total before tax		2,599			(2,349	)
	Income tax expense (benefit)		(470	)		826
	Net of tax	$	2,129		$	(1,523	)
Foreign Currency Items	Other net realized investment (gains) losses	$	108		$	(1	)
	Income tax (benefit)		(38	)		—
	Net of tax	$	70		$	(1	)
Total reclassifications	Net of tax	$	2,199		$	(1,524	)

		Amounts Reclassified from Accumulated Other Comprehensive Income
		Nine Months Ended September 30,
(Dollars in thousands) Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Consolidated Statements of Operations	2015			2014
Unrealized gains and losses on available for sale securities	Other net realized investment (gains)	$	(9,168	)	$	(53,729	)
	Other than temporary impairment losses on investments		6,879			68
	Total before tax		(2,289	)		(53,661	)
	Income tax expense		1,376			18,425
	Net of tax	$	(913	)	$	(35,236	)
Foreign Currency Items	Other net realized investment (gains) losses	$	609		$	(117	)
	Income tax expense (benefit)		(213	)		41
	Net of tax	$	396		$	(76	)
Total reclassifications	Net of tax	$	(517	)	$	(35,312	)

Net Realized Investment Gains (Losses)

Net realized gains and losses on investments are determined based on the specific identification method.

The components of net realized investment gains (losses) for the quarters and nine months ended September 30, 2015 and 2014 were as follows:

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Fixed maturities:
Gross realized gains	$	110		$	262		$	1,589		$	2,651
Gross realized losses		(1,451	)		(471	)		(1,692	)		(697	)
Net realized gains/ (losses)		(1,341	)		(209	)		(103	)		1,954
Common stock:
Gross realized gains		3,494			2,559			9,418			52,434
Gross realized losses		(4,860	)		—			(7,731	)		(610	)
Net realized gains/ (losses)		(1,366	)		2,559			1,687			51,824
Preferred stock:
Gross realized gains		—			—			96			—
Gross realized losses		—			—			—			—
Net realized gains		—			—			96			—
Derivatives:
Gross realized gains		—			147			—			—
Gross realized losses		(8,071	)		(1,339	)		(8,896	)		(13,552	)
Net realized (losses)		(8,071	)		(1,192	)		(8,896	)		(13,552	)
Total net realized investment gains/ (losses)	$	(10,778	)	$	1,158		$	(7,216	)	$	40,226

The proceeds from sales of available-for-sale securities resulting in net realized investment gains (losses) for the nine months ended September 30, 2015 and 2014 were as follows:

	Nine Months Ended September 30,
(Dollars in thousands)	2015		2014
Fixed maturities	$	290,580	$	350,179
Equity securities		34,161		181,203
Preferred stock		1,540		—

Net Investment Income

The sources of net investment income for the quarters and nine months ended September 30, 2015 and 2014 were as follows:

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Fixed maturities	$	8,673		$	6,791		$	24,709		$	20,843
Equity securities		703			780			2,419			4,861
Cash and cash equivalents		32			14			59			42
Other invested assets		193			—			1,535			87
Total investment income		9,601			7,585			28,722			25,833
Investment expense		(749	)		(1,058	)		(2,488	)		(3,345	)
Net investment income	$	8,852		$	6,527		$	26,234		$	22,488

The Company’s total investment return on a pre-tax basis for the quarters and nine months ended September 30, 2015 and 2014 were as follows:

	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Net investment income	$	8,852		$	6,527		$	26,234		$	22,488
Net realized investment gains (losses)		(10,778	)		1,158			(7,216	)		40,226
Change in unrealized holding gains and losses		(10,420	)		(11,876	)		(15,575	)		(43,650	)
Net realized and unrealized investment returns		(21,198	)		(10,718	)		(22,791	)		(3,424	)
Total investment return	$	(12,346	)	$	(4,191	)	$	3,443		$	19,064
Total investment return % (1)		(0.7	%)		(0.3	%)		0.2	%		1.2	%
Average investment portfolio (2)	$	1,800,993		$	1,558,501		$	1,788,777		$	1,541,336

(1) Not annualized.

(2) Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period.

Insurance Enhanced Asset Backed and Credit Securities

As of September 30, 2015, the Company held insurance enhanced asset backed and credit securities with a market value of approximately $45.5 million. Approximately $19.0 million of these securities were tax free municipal bonds, which represented approximately 1.0% of the Company’s total cash and invested assets, net of payable/receivable for securities purchased and sold. These securities had an average rating of “A+.” Approximately $8.3 million of these bonds are pre-refunded with U.S. treasury securities, of which $0.1 million are backed by financial guarantors, meaning that funds have been set aside in escrow to satisfy the future interest and principal obligations of the bond. Of the remaining $10.7 million of insurance enhanced municipal bonds, $0.5 million would have carried a lower credit rating had they not been insured.

The following table provides a breakdown of the ratings for these municipal bonds with and without insurance.

(Dollars in thousands)	Ratings with		Ratings without
Rating	Insurance		Insurance
AA	$	511	$	—
BB		—		511
Total	$	511	$	511

A summary of the Company’s insurance enhanced municipal bonds that are backed by financial guarantors, including the pre-refunded bonds that are escrowed in U.S. government obligations, as of September 30, 2015, is as follows:

(Dollars in thousands) Financial Guarantor	Total		Pre-refunded Securities		Government Guaranteed Securities		Exposure Net of Pre-refunded & Government Guaranteed Securities
Ambac Financial Group	$	1,686	$	136	$	—	$	1,550
Assured Guaranty Corporation		3,661		—		—		3,661
Municipal Bond Insurance Association		4,920		—		—		4,920
Gov’t National Housing Association		553		—		553		—
Total backed by financial guarantors		10,820		136		553		10,131
Other credit enhanced municipal bonds		8,185		8,185		—		—
Total	$	19,005	$	8,321	$	553	$	10,131

In addition to the tax-free municipal bonds, the Company held $26.5 million of insurance enhanced asset-backed and taxable municipal bonds, which represented approximately 1.4% of the Company’s total invested assets, net of receivable/payable for securities purchased and sold. The financial guarantors of the Company’s $26.5 million of insurance enhanced asset-backed and taxable municipal securities include Municipal Bond Insurance Association ($8.4 million), Ambac Financial Group ($1.4 million), Assured Guaranty Corporation ($14.5 million), Financial Guaranty Insurance Group ($0.2 million) and Build America Mutual ($2.0 million).

The Company had no direct investments in the entities that have provided financial guarantees or other credit support to any security held by the Company at September 30, 2015.

Bonds Held on Deposit

Certain cash balances, cash equivalents, equity securities and bonds available for sale were deposited with various governmental authorities in accordance with statutory requirements, were held as collateral pursuant to borrowing arrangements, or were held in trust pursuant to intercompany reinsurance agreements. The fair values were as follows as of September 30, 2015 and December 31, 2014:

	Estimated Fair Value
(Dollars in thousands)	September 30, 2015		December 31, 2014
On deposit with governmental authorities	$	39,763	$	32,790
Intercompany trusts held for the benefit of U.S. policyholders		555,859		495,301
Held in trust pursuant to third party requirements		69,153		95,828
Letter of credit held for third party requirements		6,112		9,340
Securities held as collateral for borrowing arrangements (1)		248,486		222,809
Total	$	919,373	$	856,068

(1) Amount required to collateralize margin borrowing facilities

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Schedule of Total Investment Return (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net Investment Income [Line Items]
Net investment income		$ 8,852	$ 6,527	$ 26,234	$ 22,488
Net realized investment gains (losses)		(10,778)	1,158	(7,216)	40,226
Change in unrealized holding gains and losses		(10,420)	(11,876)	(15,575)	(43,650)
Net realized and unrealized investment returns		(21,198)	(10,718)	(22,791)	(3,424)
Total investment return		$ (12,346)	$ (4,191)	$ 3,443	$ 19,064
Total investment return %	[1]	(0.70%)	(0.30%)	0.20%	1.20%
Average investment portfolio	[2]	$ 1,800,993	$ 1,558,501	$ 1,788,777	$ 1,541,336

[1] Not annualized.

[2] Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period.

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Amounts Recorded for Margin Borrowing Facilities and 7.75% Subordinated Notes (Detail) - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Outstanding Principal		$ 295,787	$ 174,673
Unamortized Debt Issuance Costs		(3,643)
Net Carrying Amount		292,144	174,673
Margin borrowing facilities
Debt Instrument [Line Items]
Outstanding Principal		195,787	174,673
Net Carrying Amount		195,787	$ 174,673
7.75% Subordinated Notes due 2045
Debt Instrument [Line Items]
Outstanding Principal		100,000
Unamortized Debt Issuance Costs		(3,643)
Net Carrying Amount	[1]	$ 96,357

[1] As of September 30, 2015, the carrying value and fair value of the 7.75% Subordinated Notes due 2045 are net of unamortized debt issuance cost of $3.6 million.

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Changes in Level 3 Investments Measured at Fair Value on Recurring Basis (Detail) - Other Invested Assets - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 31,176	$ 15,034	$ 33,663	$ 3,489
Included in accumulated other comprehensive income (loss)	23	(404)	481	(834)
Equity in Limited Partnership	106		1,448
Purchases	2,250	6,500	2,250	18,475
Distributions		(12)	(4,287)	(12)
Ending balance	$ 33,555	$ 21,118	$ 33,555	$ 21,118

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Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Summarized Information of Location and Gross Amount of Derivatives' Fair Value in Consolidated Balance Sheets

The following table summarizes information on the location and the gross amount of the derivatives’ fair value on the consolidated balance sheets as of September 30, 2015 and December 31, 2014:

(Dollars in thousands)			September 30, 2015					December 31, 2014
Derivatives Not Designated as Hedging Instruments under ASC 815	Balance Sheet Location		Notional Amount		Fair Value			Notional Amount		Fair Value
Interest rate swap agreements		Other liabilities	$	200,000	$	(18,522	)	$	200,000	$	(13,675	)

Summary of Net Losses Included in Consolidated Statement of Operations for Changes in Fair Value of Derivatives and Periodic net Interest Settlements Under Derivatives

The following table summarizes the net gains and losses included in the consolidated statement of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the quarters and nine months ended September 30, 2015 and 2014:

		Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	Statement of Operations Line	2015			2014			2015			2014
Interest rate swap agreements	Net realized investment gain(losses)	$	(8,071	)	$	(1,192	)	$	(8,896	)	$	(13,552	)

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Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Current income tax expense:
Foreign	$ 67	$ 39	$ 228	$ 164
U.S. Federal	(579)	(1,571)	(2,126)	5,980
Total current income tax expense (benefit)	(512)	(1,532)	(1,898)	6,144
Deferred income tax expense (benefit):
U.S. Federal	(5,469)	(101)	(8,984)	1,964
Total deferred income tax expense (benefit)	(5,469)	(101)	(8,984)	1,964
Actual tax on continuing operations	$ (5,981)	$ (1,633)	$ (10,882)	$ 8,108

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Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	9 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2015	Jan. 01, 2015	Dec. 31, 2014
ASSETS:
Intangible assets				$ 32,000
LIABILITIES:
Goodwill	$ 6,936		$ 6,936		$ 4,820
American Reliable Insurance Company
ASSETS:
Assets, Fair Value Adjustment	(4,806)
Investments	226,458	$ 226,458	226,458
Cash and cash equivalents	21,360	21,360	21,360
Premiums receivables, net	25,941	25,941	25,941
Accounts receivable	11,311	17,129	11,311
Reinsurance receivables	13,842	12,723	13,842
Prepaid reinsurance premiums	43,506	43,506	43,506
Intangible assets	32,000	32,000	32,000
Deferred federal income taxes	1,139	1,246	1,139
Other assets	6,550	6,550	6,550
Total assets	382,107	386,913	382,107
LIABILITIES:
Unearned premiums	172,234	172,234	172,234
Unpaid losses and loss adjustment expenses	89,489	88,370	89,489
Reinsurance balances payable	13,219	13,219	13,219
Contingent commissions	3,876	3,876	3,876
Other liabilities	5,608	5,685	5,608
Total liabilities	284,426	283,384	284,426
Liabilities, Fair Value Adjustment	1,042
Estimated fair value of net assets acquired	97,681	103,529	97,681
Purchase price		105,843	99,797
Goodwill	2,116	$ 2,314	$ 2,116
Estimated fair value of net assets acquired, Fair Value Adjustment	(5,848)
Purchase price, Fair Value Adjustment	6,046
American Reliable Insurance Company | Unpaid Losses and loss adjustment expenses
LIABILITIES:
Liabilities, Fair Value Adjustment	1,119
American Reliable Insurance Company | Other Liabilities
LIABILITIES:
Liabilities, Fair Value Adjustment	(77)
American Reliable Insurance Company | Accounts Receivable
ASSETS:
Assets, Fair Value Adjustment	(5,818)
American Reliable Insurance Company | Reinsurance Recoverable
ASSETS:
Assets, Fair Value Adjustment	1,119
American Reliable Insurance Company | Deferred Income Tax Charge
ASSETS:
Assets, Fair Value Adjustment	(107)
American Reliable Insurance Company | Goodwill
ASSETS:
Assets, Fair Value Adjustment	$ (198)

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Earnings Per Share

9 Months Ended

Sep. 30, 2015

Earnings Per Share

13. Earnings Per Share

Earnings per share have been computed using the weighted average number of ordinary shares and ordinary share equivalents outstanding during the period.

The following table sets forth the computation of basic and diluted earnings per share:

(Dollars in thousands,	Quarters Ended September 30,					Nine Months Ended September 30,
except share and per share data)	2015			2014		2015		2014
Net income (loss)	$	(3,746	)	$	9,761	$	14,165	$	51,792
Basic earnings per share:
Weighted average shares outstanding – basic		25,463,994			25,137,531		25,452,991		25,126,684
Net income (loss) per share	$	(0.15	)	$	0.39	$	0.56	$	2.06
Diluted earnings per share:
Weighted average shares outstanding – diluted		25,704,931			25,334,716		25,684,931		25,323,187
Net income (loss) per share	$	(0.15	)	$	0.39	$	0.55	$	2.05

A reconciliation of weighted average shares for basic earnings per share to weighted average shares for diluted earnings per share is as follows:

	Quarters Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Weighted average shares for basic earnings per share		25,463,994		25,137,531		25,452,991		25,126,684
Non-vested restricted stock		138,261		89,114		128,942		88,710
Options		102,676		108,071		102,998		107,793
Weighted average shares for diluted earnings per share		25,704,931		25,334,716		25,684,931		25,323,187

The weighted average shares outstanding used to determine dilutive earnings per share for the quarters ended September 30, 2015 and 2014 do not include 512,500 and 12,500 options, respectively, which were deemed to be anti-dilutive. The weighted average shares outstanding used to determine dilutive earnings per share for the nine months ended September 30, 2015 and 2014 do not include 512,500 and 12,500 options, respectively, which were deemed to be anti-dilutive.

The following table summarizes options which are deemed to be anti-dilutive at September 30, 2015:

Grant Date	Expiration Date	Outstanding Options		Strike Price
February 9, 2014	February 10, 2024		300,000		32.38
January 1, 2015	January 1, 2025		200,000		28.37
November 2, 2005 (1)	November 3, 2015		12,500		37.70
			512,500

(1) Represents anti-dilutive options at September 30, 2014.