Goodwill and Intangible Assets

On December 11, 2007, the Company completed an acquisition of James River Group by acquiring 100% of the outstanding shares of James River Group common stock, referred to herein as the “Merger”. The transaction was accounted for under the purchase method of accounting, and goodwill and intangible assets were recognized by the Company as a result of the transaction.

All of the Company’s goodwill is an asset of the Excess and Surplus Lines segment. The Company’s annual testing performed in the fourth quarter of 2024, 2023 and 2022 indicated that no impairment of goodwill had occurred. The carrying amount of goodwill at December 31, 2024 and 2023 was $181.8 million. Accumulated goodwill impairment losses were $99.6 million at December 31, 2024 and 2023. The most recent goodwill impairment losses occurred in 2010.

Specifically identifiable intangible assets were acquired in the Merger. In September, 2023, the Company sold the renewal rights to the Individual Risk Workers’ Compensation (“IRWC”) business in the Specialty Admitted Insurance segment. Upon closing of the transaction, the Company recognized an impairment charge of $2.5 million related to the trademark intangible asset associated with the IRWC business. During the fourth quarters of 2024, 2023 and 2022, the indefinite-lived intangible assets for trademarks and insurance licenses and authorities were tested for impairment. Intangible assets for broker relationships that have specific lives and are subject to amortization were also reviewed for impairment. There were no additional impairments recognized in 2024, 2023, or 2022.

The gross carrying amounts and accumulated amortization for each major specifically identifiable intangible asset class were as follows:


		December 31,
		2024				2023
	Life (Years)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
		(in thousands)
Trademarks	Indefinite	$	19,700	$	—	$	19,700	$	—
Insurance licenses and authorities	Indefinite	8,964		—		8,964		—
Identifiable intangibles not subject to amortization		28,664		—		28,664		—
Broker relationships	24.6	11,611		7,825		11,611		7,462
Identifiable intangible assets subject to amortization		11,611		7,825		11,611		7,462
		$	40,275	$	7,825	$	40,275	$	7,462

Future estimated amortization of specifically identifiable intangible assets as of December 31, 2024 is as follows (in thousands):


2025	$	363
2026	363
2027	363
2028	363
2029	363
Thereafter	1,971
Total	$	3,786

The table below summarizes the changes in the net carrying values of intangible assets by segment for the year ended December 31, 2024:


	December 31, 2023						December 31, 2024
	Net Carrying Value		Amortization		Impairment Losses		Net Carrying Value
	(in thousands)
Excess and Surplus Lines
Trademarks	$	19,700	$	—	$	—	$	19,700
Insurance licenses and authorities	4,900		—		—		4,900
Broker relationships	4,148		(363)		—		3,785
	28,748		(363)		—		28,385
Specialty Admitted Insurance
Trademarks	—		—		—		—
Insurance licenses and authorities	4,065		—		—		4,065

	4,065		—		—		4,065
Total identifiable intangible assets	$	32,813	$	(363)	$	—	$	32,450

The table below summarizes the changes in the net carrying values of intangible assets by segment for the year ended December 31, 2023:


	December 31, 2022						December 31, 2023
	Net Carrying Value		Amortization		Impairment Losses		Net Carrying Value
	(in thousands)
Excess and Surplus Lines
Trademarks	$	19,700	$	—	$	—	$	19,700
Insurance licenses and authorities	4,900		—		—		4,900
Broker relationships	4,511		(363)		—		4,148
	29,111		(363)		—		28,748
Specialty Admitted Insurance
Trademarks	2,500		—		(2,500)		—
Insurance licenses and authorities	4,065		—		—		4,065

	6,565		—		(2,500)		4,065
Total identifiable intangible assets	$	35,676	$	(363)	$	(2,500)	$	32,813

Amortization of intangible assets was $363,000 for the Excess and Surplus Lines segment and $0 for the Specialty Admitted Insurance segment for the year ended December 31, 2022.

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

James River Group Holdings, Inc. Goodwill & Intangibles Disclosure

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