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Segment Reporting Disclosures
 12 Months Ended
Dec. 31, 2019
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Segment Reporting Disclosures Segment Reporting Disclosures

The chief operating decision maker reviews the Company's ongoing underwriting operations on a global basis in the following two segments: Insurance and Reinsurance. In determining how to allocate resources and assess the performance of its underwriting results, management considers many factors, including the nature of the insurance product sold, the type of account written and the type of customer served. The Insurance segment includes all direct business and facultative placements written within the Company's underwriting operations. The Reinsurance segment includes all treaty reinsurance written within the Company's underwriting operations. All investing activities related to the Company's insurance operations are included in the Investing segment.

The chief operating decision maker reviews and assesses Markel Ventures’ performance in the aggregate, as a single operating segment. The Markel Ventures segment primarily consists of controlling interests in a diverse portfolio of businesses that operate in various industries.

The Company's other operations include the results of the Company's insurance-linked securities operations and program services business, as well as the results of its legal and professional consulting services. Other operations also include results for lines of business discontinued prior to, or in conjunction with, acquisitions, including development on asbestos and environmental loss reserves and results attributable to the run-off of life and annuity reinsurance business, which are monitored separately from the Company's ongoing underwriting operations. For purposes of segment reporting, none of these other operations are considered to be reportable segments.

Segment profit for each of the Company's underwriting segments is measured by underwriting profit. The property and casualty insurance industry commonly defines underwriting profit as earned premiums net of losses and loss adjustment expenses and underwriting, acquisition and insurance expenses. Underwriting profit does not replace operating income or net income computed in accordance with U.S. GAAP as a measure of profitability. Underwriting profit or loss provides a basis for management to evaluate the Company's underwriting performance. Segment profit for the Investing segment is measured by net investment income and net investment gains. Segment profit for the Markel Ventures segment is measured by operating income.

For management reporting purposes, the Company allocates assets to its underwriting operations and to its Investing and Markel Ventures segments and certain of its other operations, including its program services and insurance-linked securities operations. Underwriting assets include assets attributed to the Company's Insurance and Reinsurance segments, discontinued underwriting lines of business, as well as assets that are not specifically allocated to the Company's other operations. Underwriting and investing assets are not allocated to the Company's underwriting segments since the Company does not manage its assets by underwriting segment. The Company does not allocate capital expenditures for long-lived assets to either of its underwriting segments for management reporting purposes.

a)The following tables summarize the Company's segment disclosures.

 
Year Ended December 31, 2019
(dollars in thousands)
Insurance
 
Reinsurance
 
Investing
 
Markel Ventures (1)
 
Other (2)
 
Consolidated
Gross premium volume
$
5,320,253

 
$
1,114,153

 
$
—

 
$
—

 
$
2,345,565

 
$
8,779,971

Net written premiums
4,444,702

 
964,947

 
—

 
—

 
2,422

 
5,412,071

 
 
 
 
 
 
 
 
 
 
 
 
Earned premiums
4,144,073

 
903,587

 
—

 
—

 
2,133

 
5,049,793

Losses and loss adjustment expenses:
 
 
 
 
 
 
 
 
 
 
 
Current accident year
(2,730,971
)
 
(695,470
)
 
—

 
—

 
—

 
(3,426,441
)
Prior accident years
462,124

 
64,768

 
—

 
—

 
8,359

 
535,251

Amortization of policy acquisition costs
(860,917
)
 
(239,579
)
 
—

 
—

 
—

 
(1,100,496
)
Other operating expenses
(704,531
)
 
(73,305
)
 
—

 
—

 
239

 
(777,597
)
Underwriting profit (loss)
309,778

 
(39,999
)
 
—

 
—

 
10,731

 
280,510

Net investment income
—

 
—

 
451,152

 
736

 
—

 
451,888

Net investment gains
—

 
—

 
1,601,722

 
—

 
—

 
1,601,722

Products revenues
—

 
—

 
—

 
1,609,586

 
—

 
1,609,586

Services and other revenues
—

 
—

 
—

 
444,698

 
368,504

 
813,202

Products expenses
—

 
—

 
—

 
(1,455,245
)
 
—

 
(1,455,245
)
Services and other expenses
—

 
—

 
—

 
(389,385
)
 
(286,294
)
 
(675,679
)
Amortization of intangible assets (3)
—

 
—

 
—

 
(41,973
)
 
(106,665
)
 
(148,638
)
Segment profit (loss)
$
309,778

 
$
(39,999
)
 
$
2,052,874

 
$
168,417

 
$
(13,724
)
 
$
2,477,346

Interest expense
 
 
 
 
 
 
 
 
 
 
(171,687
)
Net foreign exchange losses
 
 
 
 
 
 
 
 
 
 
(2,265
)
Loss on early extinguishment of debt
 
 
 
 
 
 
 
 
 
 
(17,586
)
Income before income taxes
 
 
 
 
 
 
 
 
 
 
$
2,285,808

U.S. GAAP combined ratio (4)
93
%
 
104
%
 
 
 
 
 
NM

(5) 
94
%

(1) 
Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $53.6 million for the year ended December 31, 2019.
(2) 
Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets and impairment of goodwill and intangible assets that are not allocated to a reportable segment.
(3) 
Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to the Company's underwriting segments.
(4) 
The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums.
(5) 
NM - Ratio is not meaningful


 
Year Ended December 31, 2018
(dollars in thousands)
Insurance
 
Reinsurance
 
Investing
 
Markel Ventures (1)
 
Other (2)
 
Consolidated
Gross premium volume
$
4,749,166

 
$
1,050,870

 
$
—

 
$
—

 
$
2,064,433

 
$
7,864,469

Net written premiums
3,904,773

 
882,285

 
—

 
—

 
520

 
4,787,578

 
 
 
 
 
 
 
 
 
 
 
 
Earned premiums
3,783,939

 
928,574

 
—

 
—

 
(453
)
 
4,712,060

Losses and loss adjustment expenses:
 
 
 
 
 
 
 
 
 
 
 
Current accident year
(2,596,057
)
 
(775,642
)
 
—

 
—

 
—

 
(3,371,699
)
Prior accident years
502,260

 
42,982

 
—

 
—

 
5,742

 
550,984

Amortization of policy acquisition costs
(770,183
)
 
(239,120
)
 
—

 
—

 
—

 
(1,009,303
)
Other operating expenses
(691,186
)
 
(75,081
)
 
—

 
—

 
(1,941
)
 
(768,208
)
Underwriting profit (loss)
228,773

 
(118,287
)
 
—

 
—

 
3,348

 
113,834

Net investment income
—

 
—

 
433,702

 
513

 
—

 
434,215

Net investment losses
—

 
—

 
(437,596
)
 
—

 
—

 
(437,596
)
Products revenues
—

 
—

 
—

 
1,497,523

 
—

 
1,497,523

Services and other revenues
—

 
—

 
—

 
414,542

 
220,541

 
635,083

Products expenses
—

 
—

 
—

 
(1,413,248
)
 
—

 
(1,413,248
)
Services and other expenses
—

 
—

 
—

 
(366,739
)
 
(108,185
)
 
(474,924
)
Amortization of intangible assets (3)
—

 
—

 
—

 
(40,208
)
 
(75,722
)
 
(115,930
)
Impairment of goodwill and intangible assets
—

 
—

 
—

 
(14,904
)
 
(184,294
)
 
(199,198
)
Segment profit (loss)
$
228,773

 
$
(118,287
)
 
$
(3,894
)
 
$
77,479

 
$
(144,312
)
 
$
39,759

Interest expense
 
 
 
 
 
 
 
 
 
 
(154,212
)
Net foreign exchange gains
 
 
 
 
 
 
 
 
 
 
106,598

Loss before income taxes
 
 
 
 
 
 
 
 
 
 
$
(7,855
)
U.S. GAAP combined ratio (4)
94
%
 
113
%
 
 
 
 
 
NM

(5) 
98
%

(1) 
Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $52.2 million for the year ended December 31, 2018.
(2) 
Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets that is not allocated to a reportable segment.
(3) 
Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to the Company's underwriting segments.
(4) 
The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums.
(5) 
NM - Ratio is not meaningful


 
Year Ended December 31, 2017
(dollars in thousands)
Insurance
 
Reinsurance
 
Investing
 
Markel Ventures (1)
 
Other (2)
 
Consolidated
Gross premium volume
$
4,141,201

 
$
1,112,101

 
$
—

 
$
—

 
$
253,658

 
$
5,506,960

Net written premiums
3,439,796

 
978,160

 
—

 
—

 
(169
)
 
4,417,787

 
 
 
 
 
 
 
 
 
 
 
 
Earned premiums
3,314,033

 
934,114

 
—

 
—

 
(169
)
 
4,247,978

Losses and loss adjustment expenses:
 
 
 
 
 
 
 
 
 
 
 
Current accident year
(2,442,344
)
 
(924,879
)
 
—

 
—

 
—

 
(3,367,223
)
Prior accident years
500,627

 
(7,803
)
 
—

 
—

 
8,638

 
501,462

Amortization of policy acquisition costs
(675,470
)
 
(218,883
)
 
—

 
—

 
—

 
(894,353
)
Other operating expenses
(611,749
)
 
(82,567
)
 
—

 
—

 
(795
)
 
(695,111
)
Underwriting profit (loss)
85,097

 
(300,018
)
 
—

 
—

 
7,674

 
(207,247
)
Net investment income
—

 
—

 
405,377

 
332

 
—

 
405,709

Net investment losses
—

 
—

 
(5,303
)
 
—

 
—

 
(5,303
)
Products revenues
—

 
—

 
—

 
951,012

 
—

 
951,012

Services and other revenues
—

 
—

 
—

 
382,268

 
79,995

 
462,263

Products expenses
—

 
—

 
—

 
(850,449
)
 
—

 
(850,449
)
Services and other expenses
—

 
—

 
—

 
(336,484
)
 
(122,137
)
 
(458,621
)
Amortization of intangible assets (3)
—

 
—

 
—

 
(31,429
)
 
(49,329
)
 
(80,758
)
Segment profit (loss)
$
85,097

 
$
(300,018
)
 
$
400,074

 
$
115,250

 
$
(83,797
)
 
$
216,606

Interest expense
 
 
 
 
 
 
 
 
 
 
(132,451
)
Net foreign exchange gains
 
 
 
 
 
 
 
 
 
 
3,140

Income before income taxes
 
 
 
 
 
 
 
 
 
 
$
87,295

U.S. GAAP combined ratio (4)
97
%
 
132
%
 
 
 
 
 
NM

(5) 
105
%

(1) 
Products expenses and services and other expenses for the Markel Ventures segment include depreciation expense of $41.7 million for the year ended December 31, 2017.
(2) 
Other represents the total profit (loss) attributable to the Company's operations that are not included in a reportable segment as well as any amortization of intangible assets and impairment of goodwill and intangible assets that are not allocated to a reportable segment.
(3) 
Segment profit for the Markel Ventures segment includes amortization of intangible assets attributable to Markel Ventures. Amortization of intangible assets is not allocated to the Company's underwriting segments.
(4) 
The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums.
(5) 
NM - Ratio is not meaningful


b)The following table summarizes deferred policy acquisition costs, unearned premiums and unpaid losses and loss adjustment expenses.

(dollars in thousands)
Deferred Policy
Acquisition Costs
 
Unearned
Premiums
 
Unpaid Losses and
Loss Adjustment Expenses
December 31, 2019
 
 
 
 
 
Insurance segment
$
392,774

 
$
2,356,875

 
$
8,119,046

Reinsurance segment
173,268

 
677,260

 
3,395,459

Other underwriting
—

 
—

 
298,062

Total Underwriting
566,042

 
3,034,135

 
11,812,567

Program services and other
—

 
1,023,592

 
2,916,109

Total
$
566,042

 
$
4,057,727

 
$
14,728,676

December 31, 2018
 
 
 
 
 
Insurance segment
$
315,363

 
$
2,031,140

 
$
7,947,772

Reinsurance segment
159,150

 
630,435

 
3,425,751

Other underwriting
—

 
—

 
386,329

Total Underwriting
474,513

 
2,661,575

 
11,759,852

Program services and other
—

 
949,453

 
2,516,627

Total
$
474,513

 
$
3,611,028

 
$
14,276,479



c)The following table summarizes earned premiums by major product grouping.

 
Years Ended December 31,
(dollars in thousands)
2019
 
2018
 
2017
Insurance segment:
 
 
 
 
 
General liability
$
1,039,617

 
$
889,543

 
$
764,956

Professional liability
814,587

 
701,867

 
628,878

Property
364,830

 
369,116

 
365,513

Marine and energy
391,464

 
376,747

 
312,282

Personal lines
378,522

 
374,543

 
382,761

Programs
294,418

 
288,398

 
273,954

Workers' compensation
349,770

 
329,690

 
319,679

Other products
510,865

 
454,035

 
266,010

Total Insurance
4,144,073

 
3,783,939

 
3,314,033

Reinsurance segment:
 
 
 
 
 
Property
201,486

 
233,195

 
321,178

Casualty
408,368

 
360,739

 
327,912

Specialty
293,733

 
334,640

 
285,024

Total Reinsurance
903,587

 
928,574

 
934,114

Other
2,133

 
(453
)
 
(169
)
Total earned premiums
$
5,049,793

 
$
4,712,060

 
$
4,247,978



The Company does not manage products at this level of aggregation. The Company offers a diverse portfolio of products and manages these products in logical groupings within each underwriting segment.

d)The following table summarizes the Company's gross written premiums by country. Gross written premiums are attributed to individual countries based upon location of risk or cedent.

 
Years Ended December 31,
(dollars in thousands)
2019
 
% of
Total
 
2018
 
% of
Total
 
2017
 
% of
Total
United States
$
5,172,074

 
81
%
 
$
4,587,486

 
79
%
 
$
4,163,753

 
79
%
United Kingdom
458,370

 
7

 
471,818

 
8

 
374,941

 
7

Canada
151,606

 
2

 
127,546

 
2

 
132,018

 
3

Other countries
652,277

 
10

 
612,146

 
11

 
582,395

 
11

Total Underwriting
6,434,327

 
100
%
 
5,798,996

 
100
%
 
5,253,107

 
100
%
United States - Program services and other
2,345,644

 
 
 
2,065,473

 
 
 
253,853

 
 
Total
$
8,779,971

 
 
 
$
7,864,469

 
 
 
$
5,506,960

 
 


Most of the Company's gross written premiums are placed through insurance and reinsurance brokers. During the years ended December 31, 2019, 2018 and 2017, the Company's top three independent brokers accounted for 28%, 25% and 27% of gross premiums written in the Company's underwriting segments. During the years ended December 31, 2019, 2018 and 2017, the top three independent brokers accounted for 17%, 13% and 14%, respectively, of gross premiums written in the Insurance segment and 82%, 76% and 78%, respectively, of gross premiums written in the Reinsurance segment.

e)During the years ended December 31, 2019, 2018 and 2017, Markel Ventures segment revenues attributable to U.S. operations were 90%, 88%, and 85%, respectively, of total Markel Ventures segment revenues.

f)The following table reconciles segment assets to the Company's consolidated balance sheets.

 
December 31,
(dollars in thousands)
2019
 
2018
 
2017
Segment assets:
 
 
 
 
 
Investing
$
22,129,633

 
$
19,100,790

 
$
20,317,160

Underwriting
6,621,639

 
6,451,984

 
6,828,048

Markel Ventures
2,550,835

 
2,124,506

 
1,900,728

Total segment assets
31,302,107

 
27,677,280

 
29,045,936

Other operations
6,171,708

 
5,628,983

 
3,759,080

Total assets
$
37,473,815

 
$
33,306,263

 
$
32,805,016