The Company’s investments in other invested assets are comprised primarily of limited liability partnership interests. Partnership interests where we owned more than 3% at any time are carried at their fair value. The change in the difference between amortized cost and fair value of partnership interests of 3% ownership or greater, net of the effect of deferred income taxes, is reflected in income. Partnership interests of less than 3% ownership are carried at
For an analysis of other than temporary losses that were recorded for the years ended December 31, 2010, 2009, and 2008, please see Note 5 below.
The Company evaluates the collectability of accounts receivable based on a combination of factors. In circumstances in which the Company is aware of a specific circumstance where a party may be unable to meet its financial obligations to the Company, a specific allowance for bad debts against amounts due is recorded to reduce the net receivable to the amount reasonably believed by the Company’s management to be collectible. For all remaining balances, allowances are recognized for bad debts based on the length of time the receivables are past due. The allowance for bad debts was $1.2 million and $2.2 million as of December 31, 2010 and 2009, respectively.
Impairment of intangible assets with an indefinite useful life is tested at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. 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
All share amounts have been adjusted to reflect the one-for-two stock exchange of Global Indemnity plc shares for United America Indemnity, Ltd. shares effective July 2, 2010 as part of the re-domestication to Ireland. See Note 2 above for more information regarding the re-domestication.
Commercial mortgage-backed securities (“CMBS”) - As of December 31, 2010, gross unrealized losses related to CMBSs were $0.2 million. All unrealized losses have been in an unrealized loss position for less than
accounting guidance represented the non-credit portion of previously recognized OTTI on debt securities which were still held as investments as of April 1, 2009.
Debt consisted of the following as of December 31, 2010 and 2009:
Loans payable of $0.4 million and $0.6 million as of December 31, 2010 and 2009 were comprised of a loan payable to a former minority shareholder. The current portion of these loans that will be payable in 2011 is $0.3 million. Interest expense related to loans payable was $0.02 million, $0.03 million, and $0.03 million for 2010, 2009, and 2008, respectively.
Includes 3,651 shares surrendered by employees as payment of taxes withheld on the vesting of restricted stock and 5,000 shares repurchased as part of the Rights Offering.
uncertainty with respect to potential insured losses, and as a result, the Company’s potential losses from this event. While we are still evaluating the potential loss, our current estimate is approximately $5.1 million. Actual losses from this event may vary materially from our current estimates due to the inherent uncertainties resulting from several factors, including the preliminary nature of the loss data available and potential inaccuracies and inadequacies in the data provided.