Goodwill |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible Asset, Goodwill and Other [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | Note 3 - Goodwill Goodwill balances by business segment at June 30, 2026 and December 31, 2025 were:
Note 3 - Goodwill (Continued) During the second quarter of 2026, the Company concluded that recent operational challenges within the Specialty Property & Casualty reporting unit and the sustained decline in the Company’s share price were triggering events requiring a goodwill impairment assessment for all reporting units. As a result, the fair value of each reporting unit was determined using a combination of available market information, market comparisons and a discounted cash flow valuation method based on the present value of future earnings. To corroborate each reporting unit's valuation, the Company performed a reconciliation of the estimated aggregate fair value of all reporting units to the Company's market capitalization, including consideration of a control premium. This reconciliation provided an indication that, in total, assumptions and estimates were reasonable. The fair value calculated in the second quarter of 2026 for the Specialty Property & Casualty business was lower than the carrying value of the reporting unit, resulting in an impairment of $460.0 million. All the goodwill that was impaired was not tax deductible. The impairment was primarily due to the market’s perceived risk of the Company’s ability to achieve its future cash flow projections. Future sustained declines in the overall market value of the Company’s share price and a continued decline in operational performance may provide an indication that the fair value of one or more reporting units has declined below its carrying value. The goodwill impairment is reported separately in the Condensed Consolidated Statements of (Loss) Income for the three and six months ended June 30, 2026, with a corresponding reduction to Goodwill in the Condensed Consolidated Balance Sheet as of June 30, 2026. On April 1, 2026, the Company completed the sale of Newins Insurance Agency Holdings, LLC and its subsidiaries (“Newins”), a small distribution business within its Specialty Property & Casualty Insurance segment to Freeway Insurance Services America, LLC. The sale included approximately $14.9 million of assets, of which $7.2 million related to goodwill. In connection with the sale, a pre-tax gain of $7.5 million was recorded during the second quarter of 2026, subject to final closing adjustments. The gain is reflected in Insurance and Other Expenses in the Condensed Consolidated Statements of (Loss) Income.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||