Segment Reporting

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

15. SEGMENT REPORTING

The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business,

on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. 

Business is written in the U.S., Bermuda, and Ireland offices, as well as, through branches in Canada, Singapore

and the United Kingdom. The Insurance operation writes property and casualty insurance directly and through

brokers, surplus lines brokers and general agents within the U.S., Canada and Europe through its offices in the

U.S., Canada, Ireland and a branch located in Zurich. 

These segments are managed independently, but conform with corporate guidelines with respect to pricing, risk

management, control of aggregate catastrophe exposures, capital, investments and support operations. 

Management generally monitors and evaluates the financial performance of these operating segments based

upon their underwriting results. 

Underwriting results include earned premium less losses and loss adjustment expenses (“LAE”) incurred,

commission and brokerage expenses and other underwriting expenses. We measure our underwriting results

using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which,

respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums

earned. 

The Company does not maintain separate balance sheet data for its operating segments. Accordingly, the

Company does not review and evaluate the financial results of its operating segments based upon balance sheet

data. 

The following tables present the underwriting results for the operating segments for the periods indicated:

Three Months Ended

Nine Months Ended

Reinsurance

September 30,

September 30,

(Dollars in thousands)

2020

2019

2020

2019

Gross written premiums

$

2,086,961

$

1,736,672

$

5,403,080

$

4,678,310

Net written premiums

1,936,851

1,583,713

4,974,034

4,212,952

Premiums earned

$

1,669,257

$

1,420,799

$

4,656,733

$

4,072,078

Incurred losses and LAE

1,335,048

1,050,621

3,361,367

2,605,901

Commission and brokerage

373,251

371,098

1,130,946

1,039,113

Other underwriting expenses

51,333

43,832

135,170

117,031

Underwriting gain (loss)

$

(90,375)

$

(44,752)

$

29,250

$

310,033

Three Months Ended

Nine Months Ended

Insurance

September 30,

September 30,

(Dollars in thousands)

2020

2019

2020

2019

Gross written premiums

$

704,643

$

666,602

$

2,328,733

$

2,018,727

Net written premiums

511,829

484,844

1,693,603

1,491,286

Premiums earned

$

536,554

$

484,820

$

1,628,297

$

1,383,537

Incurred losses and LAE

401,162

321,303

1,212,699

909,203

Commission and brokerage

72,081

71,978

229,224

214,387

Other underwriting expenses

87,542

74,326

250,695

204,945

Underwriting gain (loss)

$

(24,231)

$

17,213

$

(64,321)

$

55,002

The following table reconciles the underwriting results for the operating segments to income before taxes as

reported in the consolidated statements of operations and comprehensive income (loss) for the periods

indicated:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in thousands)

2020

2019

2020

2019

Underwriting gain (loss)

$

(114,606)

$

(27,539)

$

(35,071)

$

365,035

Net investment income

234,233

181,058

420,116

501,062

Net realized capital gains (losses)

110,203

(12,943)

84,263

109,561

Net derivative gain (loss)

2,456

(189)

(1,048)

3,395

Corporate expenses

(10,618)

(8,435)

(29,184)

(22,622)

Interest, fee and bond issue cost amortization expense

(6,641)

(7,907)

(21,477)

(23,972)

Other income (expense)

57,481

(31,025)

48,354

(52,550)

Income (loss) before taxes

$

272,508

$

93,020

$

465,953

$

879,909

The Company produces business in the U.S., Bermuda and internationally. The net income deriving from and

assets residing in the individual foreign countries in which the Company writes business are not identifiable in

the Company’s financial records. Based on gross written premium, the table below presents the largest country,

other than the U.S., in which the Company writes business, for the periods indicated:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in thousands)

2020

2019

2020

2019

United Kingdom gross written premium

$

314,502

$

272,297

$

857,310

$

743,294

No other country represented more than

5

% of the Company’s revenues.